Advertisement
UK markets close in 6 hours 37 minutes
  • FTSE 100

    7,972.19
    +40.21 (+0.51%)
     
  • FTSE 250

    19,823.12
    +12.46 (+0.06%)
     
  • AIM

    741.56
    -0.55 (-0.07%)
     
  • GBP/EUR

    1.1683
    +0.0014 (+0.12%)
     
  • GBP/USD

    1.2591
    -0.0047 (-0.38%)
     
  • Bitcoin GBP

    56,074.86
    +529.57 (+0.95%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,248.49
    +44.91 (+0.86%)
     
  • DOW

    39,760.08
    +477.75 (+1.22%)
     
  • CRUDE OIL

    81.80
    +0.45 (+0.55%)
     
  • GOLD FUTURES

    2,216.60
    +3.90 (+0.18%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,504.06
    +26.97 (+0.15%)
     
  • CAC 40

    8,246.89
    +42.08 (+0.51%)
     

Brighthouse (BHF) Q2 Earnings & Revenues Beat, Fall Y/Y

Brighthouse Financial Inc.'s BHF second-quarter 2022 adjusted net income of $3.29 per share surpassed the Zacks Consensus Estimate by 16.3%. The bottom line decreased 38.2% year over year.

The reported quarter witnessed higher expenses and lower adjusted net investment income.

Brighthouse Financial, Inc. Price, Consensus and EPS Surprise

 

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

Behind the Headlines

Total operating revenues of $2.1 billion decreased 8.7% year over year due to lower universal life and investment-type product policy fees and net investment income. The top line, however, beat the consensus mark by about 1%.

Premiums of $167 million increased 3.1% year over year.

Adjusted net investment income was $1.1 billion in the quarter under review, down 12.1% year over year, due to lower alternative investment income, partially offset by asset growth. The investment income yield was 3.92%.

Total expenses increased 56.1% year over year to $2.6 billion due to an increase in policyholder benefits and claims, interest credited to policyholder account balances and amortization of DAC and VOBA. Corporate expenses were $201 million.

Quarterly Segmental Update

Annuities reported an adjusted operating income of $204 million, down 47.4% year over year, reflecting higher reserves, lower fees and higher deferred acquisition costs amortization, partially offset by lower expenses. Annuity sales decreased 8% to $2.5 billion.

Life generated an adjusted operating income of $23 million, down 66.7% year over year due to lower net investment income and higher DAC amortization, partially offset by lower expenses. Life insurance sales decreased 27% to $19 million.

Adjusted operating loss at Run-off was $164 million against the year-ago earnings of $122 million, reflecting lower net investment income, partially offset by a higher underwriting margin and lower expenses.

Adjusted operating loss at Corporate & Other was $39 million, which was narrower than the prior-year loss of $93 million,  on higher net investment income and a higher tax benefit.

Financial Update

Cash and cash equivalents were $5.1 billion, up 3.9% from 2021 end.

Shareholders’ equity of $10.2 billion at the end of the quarter decreased 36.8% from 2021 end.

Book value per share, excluding accumulated other comprehensive income (AOCI), was $158.51 as of Jun 30, 2022, up 31.4% year over year.

Statutory combined total adjusted capital was $8.2 billion on Jun 30, 2022, down 12.8% year over year

As of Jun 30, 2022, the estimated combined RBC ratio was between 470% and 490%.

Share Buyback Program

Brighthouse bought back shares worth $132 million in the quarter under review with another $58 million through Aug 5.

Zacks Rank

Brighthouse currently carries a Zacks Rank #5 (Strong Sell).

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

Performance of Other Life Insurers

Of the insurance industry players that have reported second-quarter results so far, Sun Life Financial Inc. SLF and Reinsurance Group of America, Incorporated RGA beat the Zacks Consensus Estimate while Lincoln National Corporation LNC missed the mark.

Sun Life’s underlying net income of $1.19 per share beat the Zacks Consensus Estimate by 10.2%. The bottom line decreased 2.4% year over year. Insurance sales increased 19.5% year over year to $690.8 million (C$736 million), driven by increased sales in Canada and United States. Wealth sales increased 20% year over year to $53.8 billion (C$57.4 billion) in the quarter under review. Value of new business improved 10% to $254.4 million (C$271 million).

Reinsurance Group of America’s adjusted operating earnings of $5.78 per share, which beat the Zacks Consensus Estimate by 112.5% and increased 44.5% from the year-ago quarter’s figure. Operating revenues of $4.1 billion beat the Zacks Consensus Estimate by 3.3% and improved 2.9% year over year on higher net premiums. Net premiums of $3.2 billion rose 4.3% year over year.

Lincoln National’s adjusted earnings of $2.23 per share lagged the Zacks Consensus Estimate by 5.1% and fell 29.7% year over year. Adjusted operating revenues of $4,641 million declined 5.3% year over year but outpaced the consensus mark by 4.1%.


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
 
Reinsurance Group of America, Incorporated (RGA) : Free Stock Analysis Report
 
Sun Life Financial Inc. (SLF) : Free Stock Analysis Report
 
Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research