Market Overview

Brighthouse Financial Announces Second Quarter 2019 Results

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  • Second quarter 2019 net income available to shareholders of $377 million, or $3.27 on a per diluted share basis, driven primarily by net derivative mark-to-market gains
  • Adjusted earnings, less notable items*, of $296 million, or $2.56 on a per diluted share basis
  • Annuity sales grew 34 percent over the second quarter of 2018
  • Variable annuity assets of approximately $1.5 billion in excess of CTE98*
  • Company repurchased $136 million of its common stock during the quarter

Brighthouse Financial, Inc. ("Brighthouse Financial" or the "company") (NASDAQ:BHF) announced today its financial results for the second quarter ended June 30, 2019.

Second Quarter 2019 Results

The company reported net income available to shareholders of $377 million in the second quarter of 2019, or $3.27 on a per diluted share basis, compared to a net loss available to shareholders of $239 million in the second quarter of 2018. The company ended the second quarter of 2019 with common stockholders' equity ("book value") of $15.9 billion, or $140.83 on a per common share basis, and book value, excluding accumulated other comprehensive income ("AOCI") of $13.2 billion, or $116.85 on a per common share basis.

For the second quarter of 2019, the company reported adjusted earnings* of $254 million, or $2.19 on a per diluted share basis.

The adjusted earnings for the quarter reflected $42 million after-tax of unfavorable notable items, or $0.36 on a per diluted share basis, including:

  • $30 million after-tax in establishment costs related to planned technology and branding expenses associated with the company's separation from its former parent company; and
  • $12 million after-tax impact related to reinsurance.

Corporate expenses in the second quarter of 2019 were $242 million pre-tax, up from $225 million pre-tax in the first quarter of 2019.

______________________

* Information regarding the non-GAAP and other financial measures included in this news release and a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP measures is provided in the Non-GAAP and Other Financial Disclosures discussion below, as well as in the tables that accompany this news release and/or the Second Quarter 2019 Brighthouse Financial, Inc. Financial Supplement and/or the Second Quarter 2019 Brighthouse Financial, Inc. Earnings Call Presentation (which are available on the Brighthouse Financial Investor Relations web page at http://investor.brighthousefinancial.com). Additional information regarding notable items can be found on the last page of this news release.

Annuity sales increased 34 percent quarter-over-quarter and 11 percent sequentially.

During the second quarter of 2019, the company repurchased approximately $136 million of its common stock, with an additional $43 million of its common stock repurchased in July 2019. Since the announcement of the company's first repurchase authorization in August 2018, the company has repurchased a total of $336 million of its common stock through July 2019.

"We continued to execute our strategy during the second quarter of 2019 and are very pleased with our results. We delivered strong annuity sales, completed the repositioning of our investment portfolio and continued to repurchase our common stock," said Eric Steigerwalt, president and CEO, Brighthouse Financial. "As we approach the second anniversary of becoming an independent, publicly-traded company, we remain focused on growing life and annuity sales, reducing expenses, effectively managing our capital and driving long-term shareholder value."

Key Metrics (Unaudited, dollars in millions except share and per share amounts)

 

 

As of or For the Three Months Ended

 

 

June 30, 2019

 

June 30, 2018

 

 

Total

 

Per share

 

Total

 

Per share

Net income (loss) available to shareholders (1)

 

$377

 

$3.27

 

$(239)

 

$(2.01)

Adjusted earnings (1)

 

$254

 

$2.19

 

$153

 

$1.27

Weighted average common shares outstanding - diluted

 

115,536,654

 

N/A

 

120,200,149

 

N/A

 

 

 

 

 

 

 

 

 

Book value

 

$15,864

 

$140.83

 

$13,435

 

$112.17

Book value, excluding AOCI

 

$13,162

 

$116.85

 

$12,620

 

$105.37

Ending common shares outstanding

 

112,644,952

 

N/A

 

119,773,106

 

N/A

 

 

 

 

 

 

 

 

 

(1) Per share amounts are on a diluted basis and may not recalculate due to rounding. For loss periods, dilutive shares were not included in the calculation as inclusion of such shares would have an anti-dilutive effect.

 

Results by Business Segment and Corporate & Other (Unaudited, in millions)

 

 

For the Three Months Ended

Adjusted earnings

 

June 30,

2019

 

March 31,

2019

 

June 30,

2018

Annuities

 

$265

 

$295

 

$221

Life

 

$58

 

$25

 

$37

Run-off (1)

 

$2

 

$(36)

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