Brighthouse Financial BHF reported fourth-quarter 2024 adjusted net income of $5.88 per share, which missed the Zacks Consensus Estimate by 32.4%. The bottom line increased 101.4% year over year. The results reflected lower expenses.

See the Zacks Earnings Calendar to stay ahead of market-making news.

Behind the Headlines

Total operating revenues of $2.3 billion increased 62.4% year over year, driven by higher net investment income and other income. The top line beat the consensus mark by 1.9%. 

Premiums of $207 million decreased 8.4% year over year.

Brighthouse Financial, Inc. Price, Consensus and EPS Surprise

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

Adjusted net investment income was $1.4 billion in the quarter under review, up 12.2% year over year, primarily driven by asset growth. The adjusted investment income yield was 4.51%. 

Total expenses were $371 million, down 85.6% year over year, attributable to favorable change in market risk benefits. 

Corporate expenses, pretax, were $210 million, down 13.9% year over year.

Quarterly Segmental Update

Annuities recorded an adjusted operating income of $279 million, up 13.9% year over year on higher fees and higher net investment income. Annuity sales decreased 18.3% to $2.5 billion due to lower sales of fixed deferred annuities, partially offset by record sales of Shield Level Annuity. 

Annuity sales were $10 billion in 2024, driven by record sales of Shield Level Annuities.

Life’s adjusted operating income was $52 million, up 13-fold year over year on higher underwriting margin and higher net investment income. Life insurance sales increased 18.9% to $33 million.

Life sales were $120 million in 2024, up 18% year over year, driven by sales of Brighthouse SmartCare.

Adjusted operating income at Run-off was $27 million against the year-ago loss of $50 million due to higher net investment income and lower expenses, partially offset by a lower underwriting margin.

Corporate & Other broke even in the quarter versus a loss of $22 million incurred in the year-ago quarter. The results were driven by a higher tax benefit and lower expenses.

Financial Update

Cash and cash equivalents were $5 billion, up 31% year over year. 

Shareholders’ equity of $5 billion at the end of 2024 increased 0.3% year over year.

Book value per share, excluding accumulated other comprehensive income, was $145.63 as of Dec. 31, 2024, up 8.9% year over year. 

Statutory combined total adjusted capital was $5.4 billion as of Sept. 30, 2024, down 14.3% year over year. 

As of Dec. 31, 2024, the estimated combined risk-based capital ratio was 400%.

Share Buyback Program

Brighthouse bought back shares worth $250 million in 2024 and another $25 million through Feb. 7, 2025.

Zacks Rank

BHF currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

Performance of Other Insurers

Voya Financial, Inc. VOYA reported fourth-quarter 2024 adjusted operating earnings of $1.50 per share, which beat the Zacks Consensus Estimate by 111.3%. The bottom line decreased 23.8% year over year. The decline was due to higher loss ratios in Stop Loss in Health Solutions and lower spread-based assets in Wealth Solutions. The decline was partially offset by growth in fee-based revenues in Wealth Solutions and Investment Management and higher alternative investment income.

Adjusted operating revenues amounted to $1.9 billion, which increased 12.5% year over year.  As of Dec. 31, 2024, VOYA’s assets under management and assets under administration and advisement totaled $893.5 million.

Unum Group’s UNM fourth-quarter 2024 operating net income of $2.03 per share missed the Zacks Consensus Estimate by 4.7%. The bottom line increased 13.4% year over year. Total operating revenues of Unum Group were $3.2 billion, up 2.5% year over year, driven by higher premium income, other income and improved net investment income. The top line missed the consensus estimate by 1.5%.

Premium increased 3.1% from the prior-year quarter to $2.6 billion, which matched the Zacks Consensus Estimate.  UNM expects after-tax adjusted operating income per share to grow 8-12% in 2025. Core operations premium growth is expected between 4% and 7%.

Lincoln National Corporation LNC reported fourth-quarter 2024 adjusted earnings per share of $1.91, which beat the Zacks Consensus Estimate by 9.8%. The bottom line advanced nearly 30% year over year. Adjusted operating revenues were $4.6 billion, which more than doubled year over year. However, the top line fell short of the consensus mark by 1%.

LNC’s estimated RBC ratio rose to more than 430% at fourth-quarter end. Insurance premiums totaled $1.59 billion, while the metric was recorded at a negative figure of $1.1 billion. However, the metric was lower than the Zacks Consensus Estimate of $1.62 billion.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Lincoln National Corporation (LNC) : Free Stock Analysis Report

Unum Group (UNM) : Free Stock Analysis Report

Voya Financial, Inc. (VOYA) : Free Stock Analysis Report

Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research