Brighthouse Adjusted Earnings Less Notable Items Fall

The Tip Desk · November 11, 2026 · 3 min read

Adjusted earnings excluding notable items were $213 million, or $3.68 a share, as annuity sales held at $2.4 billion.

Brighthouse Financial, Inc. (BHF), one of the largest U.S. providers of annuities and life insurance, reported adjusted earnings of $527 million, or $9.12 a share, for the third quarter ended September 30, 2026, after $314 million of net favorable notable items.

Those notable items, related to the annual actuarial review completed in the quarter, lifted the non-GAAP figure from $258 million, or $4.45 a share, in the second quarter, when there were none. Adjusted earnings, less notable items, declined to $213 million, or $3.68 a share.

Net income available to shareholders was $302 million, or $5.21 a share, down from $956 million, or $16.53 a share, in the second quarter. The company said the actuarial review produced a net favorable impact to net income of $278 million. It also said it anticipates volatility in net income given differences between its hedge target and GAAP reserves.

Annuity sales were $2.4 billion, essentially unchanged from the second quarter after an 11% sequential increase there. Shield Level Annuities accounted for $2.1 billion. The company said annuity sales decreased 12% quarter-over-quarter and 8% year-to-date, driven by lower fixed annuity sales, partially offset by Shield Level sales. Life sales were $36 million.

In the Annuities segment, adjusted earnings were $301 million, down from $349 million in the second quarter. The company said that, excluding notable items, the sequential decline reflected lower fees, a lower income annuity underwriting margin and lower net investment income.

Life adjusted earnings were $91 million, up from an adjusted loss of $4 million in the second quarter. The company said that, excluding notable items, the sequential improvement reflected higher net investment income and lower expenses, partially offset by a lower underwriting margin. Run-off adjusted earnings were $166 million, up from an adjusted loss of $56 million. Corporate & Other posted an adjusted loss of $31 million, unchanged from the second quarter.

Net investment income was $1,257 million. Adjusted net investment income was $1,310 million, up from $1,239 million in the second quarter, which the company attributed to higher alternative investment income. The adjusted net investment income yield was 4.41%. Corporate expenses were $204 million, unchanged from the second quarter.

Book value was $3.3 billion, or $57.59 a share, down from $4.9 billion, or $84.35 a share, at June 30. Book value excluding AOCI was $9.3 billion, or $161.36 a share.

The estimated combined risk-based capital ratio was 415% to 435%, down from 430% to 450% at June 30, still within the company’s 400% to 450% target range in normal market conditions. Statutory combined total adjusted capital was $4.8 billion. Holding company liquid assets were $1.0 billion. The company said the RBC range primarily reflected a $600 million extraordinary dividend from Brighthouse Reinsurance Company of Delaware to Brighthouse Life Insurance Company, negative impacts from core results and non-trendable items including basis risk and a significant rise in interest rates, and a reserve increase from the statutory annual actuarial review and full implementation of the NAIC’s GOES framework for variable annuity and Shield products.

On November 6, 2025, an affiliate of Aquarian Capital agreed to acquire Brighthouse Financial for $70.00 a share in an all-cash transaction valued at approximately $4.1 billion. The merger agreement was automatically extended to December 6, 2026. The company said insurance regulatory approvals in Delaware, New York and Massachusetts remain outstanding, that those approvals are not expected in time to close by the outside date, and that it and Aquarian Capital are in discussions about extending that date.