Brighthouse Financial BHF reported third-quarter 2024 adjusted net income of $3.99 per share, which missed the Zacks Consensus Estimate by 11.3%. The bottom line dropped 4.5% year over year. The results reflected higher expenses.

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Behind the Headlines

Total operating revenues of $2.2 billion increased 4.3% year over year, driven by higher net investment income and other income. However, the top line missed the consensus mark by 1.7%.

Brighthouse Financial, Inc. Price, Consensus and EPS Surprise

Brighthouse Financial, Inc. price-consensus-eps-surprise-chart | Brighthouse Financial, Inc. Quote

Premiums of $180 million increased 7.2% year over year.

Adjusted net investment income was $1.3 billion in the quarter under review, up 5.4% year over year, primarily driven by asset growth. The adjusted investment income yield was 4.26%.

Total expenses were $1.8 million, up more than threefold year over year, attributable to lower unfavorable change in market risk benefits. Corporate expenses, pretax, were $203 million, down 3.3% year over year.

Quarterly Segmental Update

Annuities recorded an adjusted operating income of $327 million, up 2.5% year over year on higher fees. Annuity sales decreased 2.8% to $2.5 billion due to sales of a fixed index annuity product.

Life’s adjusted operating loss was $25 million, narrower than a loss of $73 million in the year-ago quarter on higher underwriting margin. Life insurance sales increased 20% to $30 million.

Adjusted operating income at Run-off was $463 million, higher than the year-ago income of $95 million due to the inclusion of favorable notable items related to the annual actuarial review and related refinements completed.

Corporate & Other recorded adjusted operating income of $2 million against the year-ago loss of $15 million, reflecting higher tax benefit.

Financial Update

Cash and cash equivalents were $5.6 billion, up 46.6% year over year.

Shareholders’ equity of $5.6 billion at the end of third-quarter 2024 decreased 35.4% year over year.

Book value per share, excluding accumulated other comprehensive income, was $132.91 as of Sept. 30, 2024, down 9.3% year over year.

Statutory combined total adjusted capital was $5.7 billion as of Sept. 30, 2024, down 21.9% year over year.

As of Sept. 30, 2024, the estimated  combined risk-based capital ratio was 365%-385%.

Share Buyback Program

Brighthouse bought back shares worth $64 million in the third quarter of 2024 and another $25 million through Nov. 1, 2024.

Zacks Rank

BHF currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Life Insurers

Voya Financial, Inc. VOYA reported third-quarter 2024 adjusted operating earnings of $2.12 per share, which beat the Zacks Consensus Estimate by about 4.8%. The bottom line increased 2.4% year over year. Adjusted operating revenues amounted to $1.97 billion, which increased 7.6% year over year. The increase was driven by higher fee income, premiums and other revenues.

Net investment income decreased 7.5% year over year to $506 million. Meanwhile, fee income of $489 million increased 10.4% year over year. Premiums totaled $796 million, up 16.7% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 11.4% from the year-ago quarter. As of Sept. 30, 2024, VOYA’s assets under management, assets under administration and advisement totaled $391.6 million.

Sun Life Financial Inc. SLF delivered a third-quarter 2024 underlying net income of $1.29 per share, which beat the Zacks Consensus Estimate by 3.2%. Moreover, the bottom line increased 8.4% year over year.  The underlying net income was reported at $744.73 million (C$1,016 million), which increased 7.4% year over year.

Wealth sales & asset management gross flows increased 4.8% year over year to $30.72 billion (C$41.91 billion) in the quarter under review. The new business contractual service margin was $280.74 million (C$383 million), up 1.8% year over year.

Reinsurance Group of America, Incorporated RGA reported third-quarter 2024 adjusted operating earnings of $6.13 per share, which beat the Zacks Consensus Estimate by 19%. Moreover, the bottom line increased 10% from the year-ago quarter’s figure. Net foreign currency fluctuations had a favorable effect of 2 cents per share on adjusted operating income.

RGA's operating revenues of $5.7 billion beat the Zacks Consensus Estimate by 13.8%. The top line also improved 8.5% year over year due to higher net premiums. Net premiums of $4.4 billion rose 3.2% year over year. Investment income increased 28.8% from the prior-year quarter to $1.2 billion. The average investment yield increased to 5.08% in the third quarter from 4.72% in the prior-year period due to higher new money rates. Total benefits and expenses at Reinsurance Group increased 14% year over year to $5.4 billion.

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