Companies

Brighthouse Financial Restores Profit After First-Quarter Loss

The Tip Desk · August 5, 2026 · 3 min read

Net income available to shareholders was $956 million, or $16.53 a share, as Shield Level Annuity sales topped $2.1 billion.

Brighthouse Financial, Inc. (BHF), one of the largest U.S. providers of annuities and life insurance, reported net income available to shareholders of $956 million, or $16.53 a share, for the second quarter ended June 30, 2026, after a $792 million net loss in the first quarter.

The company anticipates volatility in net income given the differences between its hedge target and GAAP reserves, which are impacted by market performance. Adjusted earnings, which exclude that market volatility, were $258 million, or $4.45 a share, with no notable items in the quarter. That compared with $198 million, or $3.43 a share, a year earlier.

Annuity sales were $2.4 billion, up 11% sequentially from $2.2 billion in the first quarter, driven by record sales of Shield Level Annuities that exceeded $2.1 billion in the quarter. Those Shield Level sales were approximately $4.0 billion in the first half of 2026. Total annuity sales were $2.6 billion a year earlier. Life sales were $39 million, primarily driven by SmartCare.

The Annuities segment posted adjusted earnings of $349 million. Quarter-over-quarter adjusted earnings reflected higher net investment income, partially offset by lower income annuity underwriting margin and higher DAC amortization. The Life segment had an adjusted loss of $4 million, compared with a $26 million loss a year earlier; the first quarter included a $5 million favorable notable item. Run-off recorded an adjusted loss of $56 million. Corporate & Other had an adjusted loss of $31 million.

Net investment income was $1,241 million. Adjusted net investment income was $1,239 million, down $29 million sequentially from $1,268 million due to lower alternative investment income, partially offset by higher yields. The adjusted net investment income yield was 4.17%.

Corporate expenses were $204 million on a pre-tax basis, down from $227 million in the first quarter. Beginning in 2026, certain costs related to the pending acquisition are not categorized as corporate expenses. Excluding those transaction-related costs in the second quarter of 2025, corporate expenses increased $9 million quarter-over-quarter.

Common stockholders’ equity was $4.9 billion, or $84.35 a share, versus $3.9 billion, or $67.27 a share, at March 31. Book value excluding accumulated other comprehensive income was $9.0 billion, or $156.10 a share. Statutory combined total adjusted capital was $4.9 billion, relatively flat from $5.0 billion at March 31. The estimated combined risk-based capital ratio was between 430% and 450%, consistent with the first quarter and at the upper end of the company’s 400% to 450% target range in normal markets. Holding company liquid assets were $0.9 billion.

On November 6, 2025, Brighthouse Financial and Aquarian Capital LLC announced a definitive merger agreement under which an affiliate of Aquarian Capital will acquire the company for $70.00 a share in an all-cash transaction valued at approximately $4.1 billion. Completion remains subject to insurance regulatory approvals in Delaware, New York and Massachusetts. All other conditions have been satisfied or waived. If the merger has not closed by September 6, 2026, the agreement automatically extends to December 6, 2026. The merger is expected to close in 2026.

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