Brighthouse Financial Announces Q2 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
Brighthouse Financial Announces Q2 2024 Financial Results
Brighthouse Financial, Inc. ("Brighthouse Financial" or the "company") (NASDAQ: BHF) reported its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics:
| Metrics | Q2 2024 | Q2 2023 | Q1 2024 | YoY Change | QoQ Change | Consensus Estimates |
|---|---|---|---|---|---|---|
| Total Revenue | N/A | N/A | N/A | N/A | N/A | $2.21B (Q2 2024) |
| Net Income Available to Shareholders | $9M ($0.12/share) | -$200M | N/A | Positive | N/A | N/A |
| Adjusted Earnings | $346M ($5.57/share) | $271M ($4.04/share) | N/A | +$75M (+1.53) | N/A | $4.37 (Q2 2024) |
| Book Value (excluding AOCI) per Share | $128.36 | N/A | N/A | N/A | N/A | N/A |
Interpretation: Brighthouse Financial showed a significant improvement in net income, transitioning from a loss to a profit year-over-year. The adjusted earnings per share also surpassed consensus estimates, indicating strong underlying business performance.
Revenue Performance by Segment:
| Segment | Q2 2024 Adjusted Earnings | Q2 2023 Adjusted Earnings | Q1 2024 Adjusted Earnings | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Annuities | $332M | $291M | $313M | +$41M | +$19M |
| Life | $42M | $15M | -$36M | +$27M | +$78M |
| Run-off | -$30M | -$16M | -$341M | -$14M | +$311M |
| Corporate & Other | $2M | -$19M | -$34M | +$21M | +$36M |
Segment Performance Interpretation: The Annuities and Life segments recorded notable improvements in adjusted earnings both year-over-year and quarter-over-quarter. The Run-off segment continued to face challenges, while Corporate & Other showed improved performance due to higher net investment income and tax benefits.
Operational Data:
| Operational Metrics | 2024 |
|---|---|
| Estimated RBC Ratio | Between 380% and 400% |
| Holding Company Liquid Assets | $1.2 billion |
| Annuity Sales (First Half 2024 vs. First Half 2023) | Flat |
| Life Sales (First Half 2024 vs. First Half 2023) | +19% |
| Stock Repurchased (through Aug 2, 2024) | $151M ($64M in Q2) |
Comments from Company's Officers:
Eric Steigerwalt, President and CEO, commented, "Brighthouse Financial delivered mixed results in the quarter. We reported strong sales results, including record sales of our Shield Level Annuities, continued to efficiently manage our expenses, and repurchased more of our common stock. Despite those positives, our statutory results caused our estimated combined RBC ratio to end the quarter at or modestly below the low end of our target range, driven by our variable annuity and Shield business."
Dividends or Share Repurchase Program:
Brighthouse Financial repurchased approximately $151 million of its common stock year-to-date through August 2, 2024, including $64 million during the second quarter.
Forward Guidance:
The company did not provide specific forward guidance but mentioned initiatives to improve capital efficiency, unlock capital, and return to its target RBC ratio range within the next six to twelve months.
Stock Price Movement:
Following the earnings release, Brighthouse Financial's stock price experienced a marginal positive movement with an increase of approximately 0.93%.
Summary:
Brighthouse Financial's Q2 2024 financial results reveal a mix of strong sales performance, efficient expense management, and challenges in statutory results impacting RBC ratio. With strategic initiatives underway, the company aims to enhance capital efficiency and maintain robust capitalization going forward.
The report has been organized into a clear and structured format suitable for investors.
