Brighthouse Financial Reports $286 Million Net Income for 2024, Up from $1.2 Billion Loss in 2023

Brighthouse Financial, Inc. (BHF) reported a net income of $286 million for the year ended December 31, 2024, a significant improvement from a net loss of $1.2 billion in 2023. Adjusted earnings, a non-GAAP measure, reached $1.3 billion in 2024, up from $969 million in the previous year. The increase in net income was primarily driven by favorable pre-tax adjusted earnings, partially offset by unfavorable impacts from interest rate derivatives hedging ULSG business, variable annuity guaranteed benefit riders, and net investment losses on securities and mortgage loans. The company had approximately 1.4 million annuity contracts and insurance policies in force at the end of 2024.

Significant changes compared to the prior year include a $1.9 billion increase in income before provision for income tax, driven by lower losses from variable annuity guaranteed benefit riders and higher pre-tax adjusted earnings. This increase was partially offset by unfavorable impacts from interest rate derivatives. The effective tax rate decreased to 7% in 2024 from 25% in 2023, primarily due to the dividends received deduction, tax credits, and non-recurring items. Adjusted earnings increased by $350 million, primarily due to lower insurance-related activity costs, a higher net investment spread, and lower other expenses, partially offset by lower fee income.

During 2024, BHF launched updated versions of its Shield Annuity products, managed separately from its variable annuities and first-generation Shield Annuities. The company also continued its strategy of focusing on fixed annuities with lower guaranteed minimum crediting rates and variable annuity products with less risky living benefits, while increasing its emphasis on index-linked annuity products. Deposits for Shield Annuities and variable annuities totaled $8.3 billion in 2024, compared to $7.5 billion in 2023. The company's employee headcount was approximately 1,400 at the end of 2024.

Key operational developments included a shift in the annuity business mix towards fixed products and variable annuities with simplified living benefits. The company's top five annuity product distributors accounted for 58% of deposits in 2024. In the life insurance segment, sales were primarily driven by term life products and universal life products with index-linked benefits. The top five life insurance distributors accounted for 76% of sales in 2024. The company's assets under management (AUM) totaled $203.0 billion at the end of 2024.

BHF's outlook is subject to various risks and uncertainties, including differences between actual experience and actuarial assumptions, the effectiveness of its hedging strategy, changes in accounting standards, and the impact of interest rates. The company also faces risks related to competition, regulation, and the availability of reinsurance. The company stated that it currently has no plans to declare and pay dividends on its common stock.