Brighthouse Financial Q1 2026 Earnings Report
In the first quarter of 2026, Brighthouse Financial, Inc. reported an adjusted net income of $4.35 per share, which fell short of market expectations by 8.4%, despite a 4.3% increase from the previous year. The results were influenced by reduced premiums, diminished net investment income, and lower sales, which were partly balanced by decreased expenses, impacting the overall financial landscape.
Total operating revenues for Brighthouse reached $2.1 billion, marking a 3.4% decline from the previous year. This decrease stemmed from reduced premiums, universal life and investment-type policy fees, alongside decreased net investment income. Specifically, premiums dropped 9.7% to $168 million. The adjusted net investment income for the quarter was $1.3 billion, down by 1.8%, mainly due to a reduction in the institutional spread margin business. Despite these decreases, total expenses saw an 8.4% reduction to $2.5 billion, while corporate expenses before tax fell 5% to $227 million.
In terms of segment performance, the Annuities division posted an adjusted operating income of $324 million, marking a 3.2% year-over-year increase, despite a 4% decrease in annuity sales to $2.2 billion. The Life segment experienced an adjusted operating loss of $6 million, a shift from a $9 million profit in the previous year, influenced by a lower underwriting margin and net investment income but cushioned by reduced expenses. Life insurance sales dropped 11% quarterly to $32 million. The Run-off segment reported an adjusted operating loss of $48 million, narrower than last year's $64 million loss, due to improved underwriting margins and lower expenses. Meanwhile, the Corporate & Other segment recorded an adjusted operating loss of $31 million, widening from last year’s $24 million loss, primarily due to lower net investment income partially offset by higher tax benefits.
Financially, Brighthouse ended the quarter with $4.9 billion in cash and cash equivalents, a 5.1% year-over-year increase. Shareholders’ equity rose by 6.2% to $5.5 billion. The company’s book value per share, excluding accumulated other comprehensive income, declined by 1.6% to $139.63. Statutory combined total adjusted capital stood at $5 billion, down 9.1% from the previous year, with the estimated combined risk-based capital ratio ranging between 430% and 450%.
In comparison, Voya Financial, Inc. reported a strong first quarter, with adjusted operating earnings surpassing estimates by 11.8% at $2.26 per share, marking a 13% year-on-year increase. Concurrently, Sun Life Financial Inc. and Reinsurance Group of America, Incorporated both exceeded expectations and showed significant year-over-year growth in their respective financial metrics for the same period.