BHFAL · Brighthouse Financial, Inc.

Brighthouse Financial's first quarter 2026 results reflect significant GAAP net loss volatility due to market performance and hedging mismatches, while underlying adjusted earnings showed modest improvement. The net loss of $792 million widened from a $294 million loss in the prior year quarter, driven by net derivative losses of $509 million and a $748 million charge for change in market risk benefits. Adjusted earnings rose to $239 million from $235 million, benefiting from higher net investment income and lower corporate expenses, partially offset by unfavorable notable items of $12 million related to actuarial refinements. Annuity sales of $2.2 billion were led by Shield Level Annuities ($1.9 billion), though down 4% year-over-year and 20% sequentially. Life sales declined 11% to $32 million. The Annuities segment posted adjusted earnings of $324 million, up from $314 million a year ago, while Life swung to an adjusted loss of $6 million. Run-off loss improved to $48 million from $64 million. The company maintained strong capital with an estimated combined RBC ratio of 430%-450% and holding company liquid assets of $0.9 billion. The pending acquisition by Aquarian Capital for $70 per share, valued at approximately $4.1 billion, is expected to close in 2026, subject to regulatory approvals. Management highlighted that corporate expenses declined due to the exclusion of transaction-related costs from the pending merger.