EX-99.2 3 q32021bhffinancialsuppleme.htm EX-99.2 Document



Exhibit 99.2








Brighthouse Financial, Inc.
Financial Supplement

Third Quarter 2021

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Table of ContentsFinancial Results
Earnings and Select Metrics from Business Segments and Corporate & Other
Other Information
Appendix
A-2
A-6
A-7
A-8
A-9
A-10

Note: See the Appendix for non-GAAP financial information, definitions and reconciliations. Financial information, unless otherwise noted, is rounded to millions. Some financial information, therefore, may not sum to the corresponding total.

As used in this financial supplement, “Brighthouse Financial,” “Brighthouse,” the “Company,” “we,” “our” and “us” refer to Brighthouse Financial, Inc.
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Financial Results
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Financial Supplement
1



Key Metrics (Unaudited, dollars in millions except per share amounts)
As of or For the Three Months Ended
Financial Results and Metrics (1)September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Net income (loss) available to shareholders$361$10$(610)$(1,045)$(3,012)
Adjusted earnings$450$435$385$189$(689)
Adjusted earnings, less notable items (2)$514$458$428$272$388
Total corporate expenses (3)$222$218$203$236$204
Combined total adjusted capital (4)$9,700$9,432$9,421$8,617$8,432
Combined risk-based capital ratio (4), (5)520%-540%480%-500%500%-520%487%525%-545%
Stockholders' Equity
Brighthouse Financial, Inc.’s stockholders’ equity$16,031$16,115$15,017$18,023$18,266
Less: Preferred stock, net1,3601,3601,3601,360802
Brighthouse Financial, Inc.’s common stockholders’ equity, including AOCI$14,671$14,755$13,657$16,663$17,464
Less: AOCI4,2904,5963,3895,7165,381
Brighthouse Financial, Inc.’s common stockholders’ equity, excluding AOCI $10,381$10,159$10,268$10,947$12,083
Return on Common Equity (1)
Return on common equity(8.3)%(28.2)%(37.9)%(6.1)%(6.3)%
Return on common equity, excluding AOCI(11.9)%(39.7)%(50.7)%(8.1)%(8.0)%
Adjusted return on common equity13.5%2.7%(0.8)%(2.0)%(1.3)%
Earnings Per Common Share, Diluted (1), (6)
Net income (loss) available to shareholders per common share$4.34$0.11$(6.96)$(11.69)$(32.49)
Adjusted earnings per common share$5.41$5.05$4.36$2.10$(7.43)
Adjusted earnings, less notable items per common share$6.17$5.32$4.86$3.03$4.19
Weighted average common shares outstanding83,244,98786,065,15088,124,03589,890,16292,693,188
Book Value Per Common Share
Book value per common share (1)$181.23$175.19$157.26$188.90$191.58
Book value per common share, excluding AOCI (1)$128.24$120.62$118.24$124.10$132.55
Ending common shares outstanding80,952,68284,223,66986,841,26088,211,61891,158,927
(1) See definitions for Non-GAAP and Other Financial Disclosures in the Appendix beginning on page A-2.
(2) See additional information regarding notable items on page 18.
(3) Includes functional department expenses, public company expenses, certain investment expenses, retirement funding and incentive compensation; and excludes establishment costs.
(4) Reflects preliminary statutory results as of or for the three months ended September 30, 2021. See additional information on page 22.
(5) The RBC ratio is reported as a preliminary range on the quarters.
(6) For loss periods, dilutive shares were not included in the calculation of net income (loss) available to shareholders per common share or adjusted earnings per common share as inclusion of such shares would have an anti-dilutive effect.

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Financial Supplement
2



GAAP Statements of Operations (Unaudited, in millions)
For the Three Months EndedFor the Nine Months Ended
RevenuesSeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
September 30,
2021
September 30,
2020
Premiums$193$162$184$191$184$539$575
Universal life and investment-type product policy fees8819199308688822,7302,595
Net investment income1,2811,2121,1871,0379963,6802,564
Other revenues11710112711999345294
Revenues before NIGL and NDGL2,4722,3942,4282,2152,1617,2946,028
Net investment gains (losses)(16)(34)143265(36)(48)
Net derivative gains (losses)56(684)(1,504)(2,410)(1,857)(2,132)2,392
Total revenues$2,512$1,676$938$131$309$5,126$8,372
Expenses
Interest credited to policyholder account balances$413$287$297$276$281$997$816
Policyholder benefits and claims1,1127527566383,0472,6205,073
Amortization of DAC and VOBA(82)891(156)24417922
Interest expense on debt4140414547122139
Other expenses5385685216345331,6271,535
Total expenses2,0221,6551,7061,4374,1525,3838,485
Income (loss) before provision for income tax49021(768)(1,306)(3,843)(257)(113)
Provision for income tax expense (benefit)105(10)(185)(275)(850)(90)(88)
Net income (loss)38531(583)(1,031)(2,993)(167)(25)
Less: Net income (loss) attributable to noncontrolling interests221244
Net income (loss) attributable to Brighthouse Financial, Inc.38331(585)(1,032)(2,995)(171)(29)
Less: Preferred stock dividends22212513176831
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders$361$10$(610)$(1,045)$(3,012)$(239)$(60)

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Financial Supplement
3



GAAP Balance Sheets (Unaudited, in millions)
As of
ASSETSSeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Investments:
Fixed maturity securities available-for-sale$87,074$84,785$78,971$82,495$79,338
Equity securities9091106138117
Mortgage loans18,26716,73215,69015,80815,746
Policy loans1,2641,2551,2451,2911,289
Limited partnerships and limited liability companies3,9593,5463,2192,8102,562
Short-term investments1,8921,2931,6733,2424,239
Other invested assets2,7742,8632,2673,7475,038
Total investments115,320110,565103,171109,531108,329
Cash and cash equivalents4,1084,8824,0254,1086,189
Accrued investment income764827734676781
Reinsurance recoverables15,33915,29015,25715,33815,052
Premiums and other receivables9598378728201,035
DAC and VOBA5,3565,1225,1484,9114,664
Other assets484494506516447
Separate account assets112,361115,839112,224111,969103,184
Total assets$254,691$253,856$241,937$247,869$239,681
LIABILITIES AND EQUITY
Liabilities
Future policy benefits$43,795$43,427$42,426$44,448$44,537
Policyholder account balances63,74860,30055,15254,50852,798
Other policy-related balances3,4063,3563,3553,4113,088
Payables for collateral under securities loaned and other transactions5,6395,1434,2815,2526,989
Long-term debt3,4363,4363,4353,4363,979
Current income tax payable14815015212672
Deferred income tax liability1,1201,1098121,6201,816
Other liabilities4,9424,9165,0185,0114,887
Separate account liabilities112,361115,839112,224111,969103,184
Total liabilities238,595237,676226,855229,781221,350
Equity
Preferred stock, at par value
Common stock, at par value11111
Additional paid-in capital13,83013,84213,85813,87813,314
Retained earnings (deficit)(705)(1,088)(1,119)(534)511
Treasury stock(1,385)(1,236)(1,112)(1,038)(941)
Accumulated other comprehensive income (loss)4,2904,5963,3895,7165,381
Total Brighthouse Financial, Inc.’s stockholders’ equity16,03116,11515,01718,02318,266
Noncontrolling interests6565656565
Total equity16,09616,18015,08218,08818,331
Total liabilities and equity$254,691$253,856$241,937$247,869$239,681

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Earnings and Select
Metrics from
Business Segments and Corporate & Other

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Financial Supplement
5



Statements of Adjusted Earnings by Segment and Corporate & Other (Unaudited, in millions)
For the Three Months Ended September 30, 2021
Adjusted revenuesAnnuitiesLifeRun-offCorporate & OtherTotal
Premiums$49$122$3$19$193
Universal life and investment-type product policy fees63132156819
Net investment income567183505321,287
Other revenues10486118
Total adjusted revenues$1,351$345$670$51$2,417
Adjusted expenses
Interest credited to policyholder account balances$302$25$77$8$412
Policyholder benefits and claims26717950619971
Amortization of DAC and VOBA(114)(34)2(146)
Interest expense on debt4141
Other operating costs415344544538
Total adjusted expenses8702046281141,816
Adjusted earnings before provision for income tax48114142(63)601
Provision for income tax expense (benefit)96314(4)127
Adjusted earnings after provision for income tax38511038(59)474
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends2424
Adjusted earnings$385$110$38$(83)$450
For the Three Months Ended September 30, 2020
Adjusted revenuesAnnuitiesLifeRun-offCorporate & OtherTotal
Premiums$34$129$—$21$184
Universal life and investment-type product policy fees56983163815
Net investment income469131383181,001
Other revenues857799
Total adjusted revenues$1,157$350$553$39$2,099
Adjusted expenses
Interest credited to policyholder account balances$169$27$82$1$279
Policyholder benefits and claims91321,870102,021
Amortization of DAC and VOBA12750(19)158
Interest expense on debt4747
Other operating costs373474432496
Total adjusted expenses6782561,996713,001
Adjusted earnings before provision for income tax47994(1,443)(32)(902)
Provision for income tax expense (benefit)9218(304)(38)(232)
Adjusted earnings after provision for income tax38776(1,139)6(670)
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends 1919
Adjusted earnings$387$76$(1,139)$(13)$(689)

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Financial Supplement
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Statements of Adjusted Earnings by Segment and Corporate & Other (Cont.) (Unaudited, in millions)
For the Nine Months Ended September 30, 2021
Adjusted revenuesAnnuitiesLifeRun-offCorporate & OtherTotal
Premiums$103$374$3$59$539
Universal life and investment-type product policy fees1,8522214702,543
Net investment income1,6505171,466633,696
Other revenues3012621348
Total adjusted revenues$3,906$1,138$1,960$122$7,126
Adjusted expenses
Interest credited to policyholder account balances$669$80$234$11$994
Policyholder benefits and claims5586331,324522,567
Amortization of DAC and VOBA136218165
Interest expense on debt122122
Other operating costs1,2311261351351,627
Total adjusted expenses2,5948601,6933285,475
Adjusted earnings before provision for income tax1,312278267(206)1,651
Provision for income tax expense (benefit)2535831(33)309
Adjusted earnings after provision for income tax1,059220236(173)1,342
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends7272
Adjusted earnings$1,059$220$236$(245)$1,270
For the Nine Months Ended September 30, 2020
Adjusted revenuesAnnuitiesLifeRun-offCorporate & OtherTotal
Premiums$109$402$—$64$575
Universal life and investment-type product policy fees1,6622534842,399
Net investment income1,334316873542,577
Other revenues2551821294
Total adjusted revenues$3,360$989$1,378$118$5,845
Adjusted expenses
Interest credited to policyholder account balances$486$79$247$2$814
Policyholder benefits and claims3775172,673413,608
Amortization of DAC and VOBA322104(12)414
Interest expense on debt139139
Other operating costs1,1021221371371,498
Total adjusted expenses2,2878223,0573076,473
Adjusted earnings before provision for income tax1,073167(1,679)(189)(628)
Provision for income tax expense (benefit)19932(355)(72)(196)
Adjusted earnings after provision for income tax874135(1,324)(117)(432)
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends3535
Adjusted earnings$874$135$(1,324)$(152)$(467)

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Financial Supplement
7


Annuities — Statements of Adjusted Earnings (Unaudited, in millions)
For the Three Months EndedFor the Nine Months Ended
Adjusted revenuesSeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
September 30,
2021
September 30,
2020
Premiums$49$18$36$38$34$103$109
Universal life and investment-type product policy fees6316186035885691,8521,662
Net investment income5675335504864691,6501,334
Other revenues104881099185301255
Total adjusted revenues$1,351$1,257$1,298$1,203$1,157$3,906$3,360
Adjusted expenses
Interest credited to policyholder account balances$302$182$185$165$169$669$486
Policyholder benefits and claims2671181731539558377
Amortization of DAC and VOBA(114)123127118127136322
Interest expense on debt
Other operating costs4154173994073731,2311,102
Total adjusted expenses8708408848436782,5942,287
Adjusted earnings before provision for income tax4814174143604791,3121,073
Provision for income tax expense (benefit)9679786792253199
Adjusted earnings$385$338$336$293$387$1,059$874

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Financial Supplement
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Annuities — Select Operating Metrics (Unaudited, in millions)
For the Three Months Ended
VARIABLE AND SHIELD LEVEL ANNUITIES ACCOUNT VALUE (1)September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Account value, beginning of period$130,017$125,527$124,227$115,111$110,993
Deposits2,2012,1731,9721,8381,428
Withdrawals, surrenders and contract benefits(2,776)(2,874)(2,748)(2,593)(1,958)
Net flows (2)(575)(701)(776)(755)(530)
Investment performance (3)(426)6,0262,86910,6635,404
Policy charges and other(754)(835)(793)(792)(756)
Account value, end of period$128,262$130,017$125,527$124,227$115,111
FIXED ANNUITIES ACCOUNT VALUE (4)
Account value, beginning of period$15,456$15,404$15,358$14,443$13,660
Deposits2221972311,159946
Withdrawals, surrenders and contract benefits(234)(231)(279)(332)(242)
Net flows (2)(12)(34)(48)827704
Interest credited99981078998
Other(7)(12)(13)(1)(19)
Account value, end of period$15,536$15,456$15,404$15,358$14,443
INCOME ANNUITIES (1)
Income annuity insurance liabilities$4,642$4,665$4,624$4,817$4,798
(1) Includes general account and separate account.
(2) Deposits and withdrawals include policy exchanges.
(3) Includes imputed interest on indexed annuities and the interest credited on the general account investment option of variable products.
(4) Includes fixed index annuities.
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Financial Supplement
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Annuities — Select Operating Metrics (Cont.) (Unaudited, in millions)
For the Three Months EndedFor the Nine Months Ended
VARIABLE AND SHIELD LEVEL ANNUITY SALESSeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
September 30,
2021
September 30,
2020
Shield Level Annuities (1)$1,634$1,593$1,423$1,359$934$4,650$2,979
GMWB/GMAB3963933663323501,155949
GMDB only97100958187292256
GMIB17182323195860
Total variable and Shield Level annuity sales$2,144$2,104$1,907$1,795$1,390$6,155$4,244
FIXED AND INCOME ANNUITY SALES
Fixed index annuities (2)$198$173$182$253$234$553$751
Fixed deferred annuities192242902709831,139
Single premium immediate annuities1116
Other fixed and income annuities11112
Total fixed and income annuity sales$218$195$225$1,156$945$638$1,898
(1) Shield Level Annuities refers to our suite of structured annuities consisting of products marketed under various names.
(2) Represents 100% of gross sales on directly written business and the proportion of assumed gross sales under reinsurance agreements.

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Financial Supplement
10


Life — Statements of Adjusted Earnings (Unaudited, in millions)
For the Three Months EndedFor the Nine Months Ended
Adjusted revenuesSeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
September 30,
2021
September 30,
2020
Premiums$122$125$127$131$129$374$402
Universal life and investment-type product policy fees32831066283221253
Net investment income183168166144131517316
Other revenues8711872618
Total adjusted revenues$345$383$410$345$350$1,138$989
Adjusted expenses
Interest credited to policyholder account balances$25$24$31$27$27$80$79
Policyholder benefits and claims179216238246132633517
Amortization of DAC and VOBA(34)104535021104
Interest expense on debt
Other operating costs3448445447126122
Total adjusted expenses204298358330256860822
Adjusted earnings before provision for income tax14185521594278167
Provision for income tax expense (benefit)3117102185832
Adjusted earnings$110$68$42$13$76$220$135

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Financial Supplement
11


Life — Select Operating Metrics (Unaudited, in millions)
For the Three Months Ended
LIFE ACCOUNT VALUE: GENERAL ACCOUNTSeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Universal and variable universal life account value, beginning of period$2,667$2,670$2,674$2,670$2,674
Premiums and deposits (1)7578746965
Surrenders and contract benefits(40)(39)(46)(43)(38)
Net flows3539282627
Net transfers from (to) separate account28982516
Interest credited2625282626
Policy charges and other (76)(76)(68)(73)(73)
Universal and variable universal life account value, end of period$2,680$2,667$2,670$2,674$2,670
LIFE ACCOUNT VALUE: SEPARATE ACCOUNT
Variable universal life account value, beginning of period$6,721$6,373$6,230$5,582$5,261
Premiums and deposits4647495050
Surrenders and contract benefits(52)(64)(81)(54)(49)
Net flows(6)(17)(32)(4)1
Investment performance(31)423237733390
Net transfers from (to) general account(28)(9)(8)(25)(16)
Policy charges and other(58)(49)(54)(56)(54)
Variable universal life account value, end of period$6,598$6,721$6,373$6,230$5,582
(1) Includes premiums and sales directed to the general account investment option of variable products.
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Financial Supplement
12


Life — Select Operating Metrics (Cont.) (Unaudited, in millions)
For the Three Months EndedFor the Nine Months Ended
LIFE SALESSeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
September 30,
2021
September 30,
2020
Total life sales$27$26$23$15$13$76$41
As of
LIFE INSURANCE IN-FORCESeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Whole Life
Life Insurance in-force, before reinsurance$19,028$19,223$19,390$19,585$19,762
Life Insurance in-force, net of reinsurance$3,239$3,265$3,332$3,313$3,371
Term Life
Life Insurance in-force, before reinsurance$379,193$382,200$385,396$388,298$391,583
Life Insurance in-force, net of reinsurance$298,363$299,414$300,658$301,731$303,232
Universal and Variable Universal Life
Life Insurance in-force, before reinsurance$49,575$50,147$50,397$50,922$52,377
Life Insurance in-force, net of reinsurance$37,314$37,611$37,641$38,490$39,258

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Financial Supplement
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Run-off — Statements of Adjusted Earnings (Unaudited, in millions)
For the Three Months EndedFor the Nine Months Ended
Adjusted revenuesSeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
September 30,
2021
September 30,
2020
Premiums$3$—$—$2$—$3$—
Universal life and investment-type product policy fees156155159155163470484
Net investment income5054994623963831,466873
Other revenues687772121
Total adjusted revenues$670$662$628$560$553$1,960$1,378
Adjusted expenses
Interest credited to policyholder account balances$77$77$80$82$82$234$247
Policyholder benefits and claims5063994194051,8701,3242,673
Amortization of DAC and VOBA
Interest expense on debt
Other operating costs4546444944135137
Total adjusted expenses6285225435361,9961,6933,057
Adjusted earnings before provision for income tax421408524(1,443)267(1,679)
Provision for income tax expense (benefit)4189(1)(304)31(355)
Adjusted earnings$38$122$76$25$(1,139)$236$(1,324)

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Financial Supplement
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Run-off — Select Operating Metrics (Unaudited, in millions)
For the Three Months Ended
UNIVERSAL LIFE WITH SECONDARY GUARANTEES ACCOUNT VALUESeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Account value, beginning of period$5,683$5,740$5,823$5,865$5,930
Premiums and deposits (1)167174175181176
Surrenders and contract benefits(20)(27)(49)(23)(40)
Net flows147147126158136
Interest credited4850495151
Policy charges and other(249)(254)(258)(251)(252)
Account value, end of period$5,629$5,683$5,740$5,823$5,865
As of
LIFE INSURANCE IN-FORCESeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Universal Life with Secondary Guarantees
Life Insurance in-force, before reinsurance$75,020$75,487$76,050$76,745$76,342
Life Insurance in-force, net of reinsurance$37,000$37,133$36,690$37,044$36,842
(1) Includes premiums and sales directed to the general account investment option of variable products.

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Financial Supplement
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Corporate & Other — Statements of Adjusted Earnings (Unaudited, in millions)
For the Three Months EndedFor the Nine Months Ended
Adjusted revenuesSeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
September 30,
2021
September 30,
2020
Premiums$19$19$21$20$21$59$64
Universal life and investment-type product policy fees
Net investment income32171416186354
Other revenues2
Total adjusted revenues$51$36$35$38$39$122$118
Adjusted expenses
Interest credited to policyholder account balances$8$3$—$1$1$11$2
Policyholder benefits and claims19151816105241
Amortization of DAC and VOBA2333(19)8(12)
Interest expense on debt4140414547122139
Other operating costs44573411632135137
Total adjusted expenses1141189618171328307
Adjusted earnings before provision for income tax(63)(82)(61)(143)(32)(206)(189)
Provision for income tax expense (benefit)(4)(10)(19)(15)(38)(33)(72)
Adjusted earnings after provision for income tax(59)(72)(42)(128)6(173)(117)
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends
24212714197235
Adjusted earnings$(83)$(93)$(69)$(142)$(13)$(245)$(152)

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Other
Information

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Financial Supplement
17



DAC and VOBA and Net Derivative Gains (Losses) (Unaudited, in millions)
For the Three Months Ended
DAC AND VOBA ROLLFORWARDSeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Balance, beginning of period$5,122$5,148$4,911$4,664$4,856
Capitalization12612011412890
Amortization:
Included in adjusted earnings, excluding notable items(127)(136)(155)(124)(121)
Related to notable items, included in adjusted expenses273(20)(37)
Related to items not included in adjusted expenses(64)12884280(86)
Total amortization82(8)(91)156(244)
Unrealized investment gains (losses)26(138)214(37)(38)
Balance, end of period$5,356$5,122$5,148$4,911$4,664
As of
DAC AND VOBA BY SEGMENT AND CORPORATE & OTHERSeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Annuities$4,308$4,103$4,117$3,829$3,574
Life946914923971976
Run-off44555
Corporate & Other98101103106109
Total DAC and VOBA$5,356$5,122$5,148$4,911$4,664
For the Three Months Ended
NET DERIVATIVE GAINS (LOSSES)September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Net derivative gains (losses):
Variable annuity hedges and embedded derivatives, net$(59)$(1,132)$(553)$(2,092)$(1,688)
ULSG hedges19403(958)(291)(97)
Other hedges and embedded derivatives90402(32)(77)
Subtotal50(689)(1,509)(2,415)(1,862)
Investment hedge adjustments65555
Total net derivative gains (losses)$56$(684)$(1,504)$(2,410)$(1,857)

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Financial Supplement
18



Notable Items (Unaudited, in millions)
For the Three Months Ended
NOTABLE ITEMS IMPACTING ADJUSTED EARNINGSSeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Actuarial items and other insurance adjustments$44$—$29$17$1,062
Establishment costs2023143215
Debt repayment costs34
Total notable items (1)$64$23$43$83$1,077
NOTABLE ITEMS BY SEGMENT AND CORPORATE & OTHER
Annuities$(42)$—$—$—$(102)
Life(3)1711
Run-off89291,172
Corporate & Other20231466(4)
Total notable items (1)$64$23$43$83$1,077
(1) Notable items reflect the negative (positive) after-tax impact to adjusted earnings of certain unanticipated items and events, as well as certain items and events that were anticipated, such as establishment costs. The presentation of notable items is intended to help investors better understand our results and to evaluate and forecast those results.

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Financial Supplement
19



Variable Annuity Separate Account Returns and Allocations (Unaudited)
For the Three Months Ended
VARIABLE ANNUITY SEPARATE ACCOUNT RETURNSSeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Total Quarterly VA separate account gross returns(0.42)%5.91%2.93%11.48%6.04%
TOTAL VARIABLE ANNUITY SEPARATE ACCOUNT ALLOCATIONS
Percent allocated to equity funds28.54%28.62%29.28%27.88%26.85%
Percent allocated to bond funds/other funds8.67%8.40%8.44%8.43%8.82%
Percent allocated to target volatility funds20.98%21.14%20.15%21.69%22.38%
Percent allocated to balanced funds41.81%41.84%42.13%42.00%41.95%

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Financial Supplement
20



Summary of Investments (Unaudited, dollars in millions)
September 30, 2021December 31, 2020
Amount% of TotalAmount% of Total
Fixed maturity securities:
U.S. corporate securities$38,68332.39%$37,90633.36%
Foreign corporate securities11,6949.79%11,51110.13%
U.S. government and agency securities9,4807.94%8,6387.60%
Residential mortgage-backed securities9,5177.97%8,2947.30%
Commercial mortgage-backed securities7,0955.94%6,7905.98%
State and political subdivision securities4,8464.06%4,6404.08%
Asset-backed securities3,9073.27%2,8842.54%
Foreign government securities1,8521.55%1,8321.60%
Total fixed maturity securities87,07472.91%82,49572.59%
Equity securities900.08%1380.12%
Mortgage loans:
Commercial mortgage loans11,1569.34%9,7148.55%
Agricultural mortgage loans3,9973.35%3,5383.11%
Residential mortgage loans3,2142.69%2,6502.33%
Allowance for credit losses(100)(0.08)%(94)(0.08)%
Total mortgage loans, net18,26715.30%15,80813.91%
Policy loans1,2641.06%1,2911.14%
Limited partnerships and limited liability companies3,9593.31%2,8102.47%
Cash, cash equivalents and short-term investments6,0005.02%7,3506.47%
Other invested assets:
Derivatives:
Interest rate7450.62%2,0941.84%
Equity market1,4851.24%1,2271.08%
Foreign currency exchange rate3270.28%2200.19%
Credit390.03%410.04%
Total derivatives2,5962.17%3,5823.15%
FHLB common stock590.05%390.04%
Other1190.10%1260.11%
Total other invested assets2,7742.32%3,7473.30%
Total investments and cash and cash equivalents$119,428100.00%$113,639100.00%
For the Three Months Ended
September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Net investment income yield (1), (2)5.16%5.08%5.12%4.56%4.42%
(1) Yields are calculated on investment income as a percent of average quarterly asset carrying values. Investment income includes investment hedge adjustments, excludes realized gains and losses and reflects the GAAP adjustments described beginning on page A-2 of the Appendix hereto. Asset carrying values exclude unrealized gains (losses), collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties.
(2) Investment fee and expense yields are calculated as investment fees and expenses as a percent of average quarterly asset estimated fair values. Asset estimated fair values exclude collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties.

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Financial Supplement
21



Statutory Statement of Operations Information (Unaudited, in millions except Normalized Statutory Earnings (Loss))
For the Three Months EndedFor the Nine Months Ended
COMBINED REVENUES AND EXPENSES (1)PRELIMINARY
September 30,
2021 (2)
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
PRELIMINARY
September 30,
2021 (2)
September 30,
2020
Total revenues (Line 9)$3,900$3,540$3,551$3,503$2,904$10,991$10,065
Total benefits and expenses before dividends to policyholders (Line 28)
$4,100$3,758$1,824$1,445$1,351$9,682$12,995
COMBINED NET INCOME (LOSS) (1)
Gain (loss) from operations net of taxes and dividends to policyholders (Line 33)
$(200)$(206)$1,737$2,187$1,519$1,331$(2,969)
Net realized capital gains (losses), net of taxes and certain transfers to interest maintenance reserve (Line 34)
(372)(812)(453)(1,253)(1,184)(29)
Net income (loss) (Line 35)$(200)$(578)$925$1,734$266$147$(2,998)
For the Nine Months Ended
NORMALIZED STATUTORY EARNINGS (LOSS) (3), (4)PRELIMINARY
September 30,
2021 (2)
September 30,
2020
(In billions)
Statutory net gain (loss) from operations, pre-tax$1.5$(2.8)
Add: net realized capital gains (losses)(1.4)(0.1)
Add: change in total asset requirement at CTE95, net of the change in VA reserves(0.4)0.2
Add: unrealized gains (losses) on VA hedging program0.22.7
Add: impact of actuarial items and other insurance adjustments(0.2)(0.6)
Add: other adjustments, net0.10.2
Normalized statutory earnings (loss)$(0.2)$(0.4)
(1) Combined statutory results are for Brighthouse Life Insurance Company, Brighthouse Life Insurance Company of NY and New England Life Insurance Company.
(2) Reflects preliminary statutory results for the three months and nine months ended September 30, 2021.
(3) See definitions for Non-GAAP and Other Financial Disclosures in the Appendix beginning on page A-2.
(4) Normalized statutory earnings (loss), presented in billions, is for Brighthouse Life Insurance Company and New England Life Insurance Company.


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Financial Supplement
22



Statutory Balance Sheet and Surplus Information (Unaudited, in millions)
As of
COMBINED ASSETS, LIABILITIES, AND CAPITAL AND SURPLUS (1)                                                    PRELIMINARY
September 30,
2021 (2)
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Total assets (Line 28)$206,100$205,018$197,181$197,847$192,215
Total liabilities (Line 28)$197,800$196,967$189,012$190,287$184,709
Total capital and surplus (Line 38)$8,300$8,051$8,169$7,560$7,506
COMBINED TAC AND RBC RATIO (1), (3)
Combined total adjusted capital$9,700$9,432$9,421$8,617$8,432
Combined risk-based capital ratio (4)520%-540%480%-500%500%-520%487%525%-545%
As of
COMBINED ORDINARY DIVIDEND CAPACITY (1)September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Dividends paid to Holding Company$—$250$—$511$—
Remaining ordinary dividend capacity (5)$588$588$838$816$1,327
(1) Combined statutory results are for Brighthouse Life Insurance Company and New England Life Insurance Company.
(2) Reflects preliminary statutory results as of September 30, 2021.
(3) See definitions for Non-GAAP and Other Financial Disclosures in the Appendix beginning on page A-2.
(4) The RBC ratio is reported as a preliminary range on the quarters.
(5) Reflects remaining dividend amounts that may be paid at one or more points in time during the respective calendar year without prior regulatory approval.

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Appendix

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Financial Supplement
A-1



Note Regarding Forward-Looking Statements

This financial supplement and other oral or written statements that we make from time to time may contain information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve substantial risks and uncertainties. We have tried, wherever possible, to identify such statements using words such as “anticipate,” “estimate,” “expect,” “project,” “may,” “will,” “could,” “intend,” “goal,” “target,” “guidance,” “forecast,” “preliminary,” “objective,” “continue,” “aim,” “plan,” “believe” and other words and terms of similar meaning, or that are tied to future periods, in connection with a discussion of future operating or financial performance. In particular, these include, without limitation, statements relating to future actions, prospective services or products, financial projections, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, as well as trends in operating and financial results.

Any or all forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining the actual future results of Brighthouse Financial. These statements are based on current expectations and the current economic environment and involve a number of risks and uncertainties that are difficult to predict. These statements are not guarantees of future performance. Actual results could differ materially from those expressed or implied in the forward-looking statements due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others: differences between actual experience and actuarial assumptions and the effectiveness of our actuarial models; higher risk management costs and exposure to increased market risk due to guarantees within certain of our products; the effectiveness of our variable annuity exposure risk management strategy and the impact of such strategy on volatility in our profitability measures and negative effects on our statutory capital; material differences from actual outcomes compared to the sensitivities calculated under certain scenarios and sensitivities that we may utilize in connection with our variable annuity risk management strategies; the impact of interest rates on our future ULSG policyholder obligations and net income volatility; the impact of the ongoing worldwide COVID-19 pandemic; the potential material adverse effect of changes in accounting standards, practices or policies applicable to us, including changes in the accounting for long-duration contracts; loss of business and other negative impacts resulting from a downgrade or a potential downgrade in our financial strength or credit ratings; the availability of reinsurance and the ability of the counterparties to our reinsurance or indemnification arrangements to perform their obligations thereunder; heightened competition, including with respect to service, product features, scale, price, actual or perceived financial strength, claims-paying ratings, credit ratings, e-business capabilities and name recognition; our ability to market and distribute our products through distribution channels; any failure of third parties to provide services we need, any failure of the practices and procedures of such third parties and any inability to obtain information or assistance we need from third parties; the ability of our subsidiaries to pay dividends to us, and our ability to pay dividends to our shareholders and repurchase our common stock; the adverse impact on liabilities for policyholder claims as a result of extreme mortality events; the impact of adverse capital and credit market conditions, including with respect to our ability to meet liquidity needs and access capital; the impact of economic conditions in the capital markets and the U.S. and global economy, as well as geo-political or catastrophic events, on our investment portfolio, including on realized and unrealized losses and impairments, net investment spread and net investment income; the impact of events that adversely affect issuers, guarantors or collateral relating to our investments or our derivatives counterparties, on impairments, valuation allowances, reserves, net investment income and changes in unrealized gain or loss positions; the impact of changes in regulation and in supervisory and enforcement policies on our insurance business or other operations; the potential material negative tax impact of potential future tax legislation that could make some of our products less attractive to consumers; the effectiveness of our policies and procedures in managing risk; the loss or disclosure of confidential information, damage to our reputation and impairment of our ability to conduct business effectively as a result of any failure in cyber- or other information security systems; whether all or any portion of the tax consequences of our separation from MetLife, Inc. ("MetLife") are not as expected, leading to material additional taxes or material adverse consequences to tax attributes that impact us; the uncertainty of the outcome of any disputes with MetLife over tax-related or other matters and agreements or disagreements regarding MetLife’s or our obligations under our other agreements; and other factors described from time to time in documents that we file with the U.S. Securities and Exchange Commission (the “SEC”).

For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements included and the risks, uncertainties and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 2020, particularly in the sections entitled “Risk Factors” and “Quantitative and Qualitative Disclosures About Market Risk,” as well as in our other subsequent filings with the SEC. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.

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Financial Supplement
A-2



Non-GAAP and Other Financial Disclosures

Our definitions of the non-GAAP and other financial measures may differ from those used by other companies.

Non-GAAP Financial Disclosures

We present certain measures of our performance that are not calculated in accordance with GAAP. We believe that these non-GAAP financial measures highlight our results of operations and the underlying profitability drivers of our business, as well as enhance the understanding of our performance by the investor community.

The following non-GAAP financial measures, previously referred to as operating measures, should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP:

Non-GAAP financial measures:Most directly comparable GAAP financial measures:
(i)adjusted earnings(i)net income (loss) available to shareholders (1)
(ii)adjusted earnings, less notable items(ii)net income (loss) available to shareholders (1)
(iii)adjusted revenues(iii)revenues
(iv)adjusted expenses(iv)expenses
(v)adjusted earnings per common share(v)earnings per common share, diluted (1)
(vi)adjusted earnings per common share, less notable items(vi)earnings per common share, diluted (1)
(vii)adjusted return on common equity(vii)return on common equity (2)
(viii)adjusted return on common equity, less notable items(viii)return on common equity (2)
(ix)adjusted net investment income (ix)net investment income
__________________
(1) Brighthouse uses net income (loss) available to shareholders to refer to net income (loss) available to Brighthouse Financial, Inc.’s common shareholders, and earnings per common share, diluted to refer to net income (loss) available to shareholders per common share.
(2) Brighthouse uses return on common equity to refer to return on Brighthouse Financial, Inc.’s common stockholders' equity.

Reconciliations to the most directly comparable historical GAAP measures are included for those measures which are presented herein. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are not accessible on a forward-looking basis because we believe it is not possible without unreasonable efforts to provide other than a range of net investment gains and losses and net derivative gains and losses, which can fluctuate significantly within or outside the range and from period to period and may have a material impact on net income (loss) available to shareholders.

Adjusted Earnings, Adjusted Revenues and Adjusted Expenses

Adjusted earnings is a financial measure used by management to evaluate performance, allocate resources and facilitate comparisons to industry results. This financial measure, which may be positive or negative, focuses on our primary businesses principally by excluding the impact of market volatility, which could distort trends.

Adjusted earnings reflects adjusted revenues less (i) adjusted expenses, (ii) provision for income tax expense (benefit), (iii) net income (loss) attributable to noncontrolling interests and (iv) preferred stock dividends. Provided below are the adjustments to GAAP revenues and GAAP expenses used to calculate adjusted revenues and adjusted expenses, respectively.
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Financial Supplement
A-3



Non-GAAP and Other Financial Disclosures (Cont.)


The following are significant items excluded from total revenues in calculating the adjusted revenues component of adjusted earnings:

Net investment gains (losses);

Net derivative gains (losses) except earned income and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment (“Investment Hedge Adjustments”); and

Certain variable annuity GMIB fees (“GMIB Fees”).

The following are significant items excluded from total expenses in calculating the adjusted expenses component of adjusted earnings:

Amounts associated with benefits related to GMIBs (“GMIB Costs”);

Amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”); and

Amortization of DAC and VOBA related to (i) net investment gains (losses), (ii) net derivative gains (losses), (iii) GMIB Fees and GMIB Costs and (iv) Market Value Adjustments.

The tax impact of the adjustments discussed above is calculated net of the statutory tax rate, which could differ from our effective tax rate.

Consistent with GAAP guidance for segment reporting, adjusted earnings is also our GAAP measure of segment performance.


Adjusted Earnings per Common Share and Adjusted Return on Common Equity

Adjusted earnings per common share and adjusted return on common equity are measures used by management to evaluate the execution of our business strategy and align such strategy with our shareholders’ interests.

Adjusted earnings per common share is defined as adjusted earnings for the period divided by the weighted average number of fully diluted shares of common stock outstanding for the period. The weighted average common shares outstanding used to calculate adjusted earnings per share will differ from such shares used to calculate diluted net income (loss) available to shareholders per common share when the inclusion of dilutive shares has an anti-dilutive effect for one calculation but not for the other.

Adjusted return on common equity is defined as total annual adjusted earnings on a four quarter trailing basis, divided by the simple average of the most recent five quarters of total Brighthouse Financial, Inc.’s common stockholders’ equity, excluding AOCI.

Adjusted Net Investment Income

We present adjusted net investment income to measure our performance for management purposes, and we believe it enhances the understanding of our investment portfolio results. Adjusted net investment income represents net investment income, including Investment Hedge Adjustments.

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Financial Supplement
A-4



Non-GAAP and Other Financial Disclosures (Cont.)


Other Financial Disclosures

Corporate Expenses

Corporate expenses includes functional department expenses, public company expenses, certain investment expenses, retirement funding and incentive compensation; and excludes establishment costs.

Notable items

Certain of the non-GAAP measures described above may be presented further adjusted to exclude notable items. Notable items reflect the impact on our results of certain unanticipated items and events, as well as certain items and events that were anticipated, such as establishment costs. The presentation of notable items and non-GAAP measures, less notable items is intended to help investors better understand our results and to evaluate and forecast those results.

Book Value per Common Share and Book Value per Common Share, excluding AOCI

Brighthouse uses the term “book value” to refer to “Brighthouse Financial, Inc.’s common stockholders’ equity, including AOCI.” Book value per common share is defined as ending Brighthouse Financial, Inc.’s common stockholders’ equity, including AOCI, divided by ending common shares outstanding. Book value per common share, excluding AOCI, is defined as ending Brighthouse Financial, Inc.’s common stockholders’ equity, excluding AOCI, divided by ending common shares outstanding.

CTE95

CTE95 is defined as the amount of assets required to satisfy contract holder obligations across market environments in the average of the worst five percent of a set of capital market scenarios over the life of the contracts.

CTE98

CTE98 is defined as the amount of assets required to satisfy contract holder obligations across market environments in the average of the worst two percent of a set of capital market scenarios over the life of the contracts.

Holding Company Liquid Assets

Holding company liquid assets include liquid assets in Brighthouse Financial, Inc., Brighthouse Holdings, LLC, and Brighthouse Services, LLC. Liquid assets are comprised of cash and cash equivalents, short-term investments and publicly-traded securities, excluding assets that are pledged or otherwise committed. Assets pledged or otherwise committed include assets held in trust.

Total Adjusted Capital

Total adjusted capital primarily consists of statutory capital and surplus, as well as the statutory asset valuation reserve. When referred to as “combined,” represents that of our insurance subsidiaries as a whole.
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Financial Supplement
A-5



Non-GAAP and Other Financial Disclosures (Cont.)


Other Financial Disclosures (cont.)

Sales

Life insurance sales consist of 100 percent of annualized new premium for term life, first-year paid premium for whole life, universal life, and variable universal life, and total paid premium for indexed universal life. We exclude company-sponsored internal exchanges, corporate-owned life insurance, bank-owned life insurance, and private placement variable universal life.

Annuity sales consist of 100 percent of direct statutory premiums, except for fixed index annuity sales distributed through MassMutual that consist of 90 percent of gross sales. Annuity sales exclude certain internal exchanges. These sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity.

Net Investment Income Yield

Similar to adjusted net investment income, we present net investment income yields as a performance measure we believe enhances the understanding of our investment portfolio results. Net investment income yields are calculated on adjusted net investment income as a percent of average quarterly asset carrying values. Asset carrying values exclude unrealized gains (losses), collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties. Investment fee and expense yields are calculated as investment fees and expenses as a percent of average quarterly asset estimated fair values. Asset estimated fair values exclude collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties.

Normalized Statutory Earnings (Loss)

Normalized statutory earnings (loss) is used by management to measure our insurance companies’ ability to pay future distributions and is reflective of whether our hedging program functions as intended. Normalized statutory earnings (loss) is calculated as statutory pre-tax net gain from operations adjusted for the favorable or unfavorable impacts of (i) net realized capital gains (losses), (ii) the change in total asset requirement at CTE95, net of the change in our variable annuity reserves, and (iii) unrealized gains (losses) associated with our variable annuities risk management strategy. Normalized statutory earnings (loss) may be further adjusted for certain unanticipated items that impacted our results in order to help management and investors better understand, evaluate and forecast those results.

Risk-Based Capital Ratio

The risk-based capital ratio is a method of measuring an insurance company’s capital, taking into consideration its relative size and risk profile, in order to ensure compliance with minimum regulatory capital requirements set by the National Association of Insurance Commissioners. When referred to as “combined,” represents that of our insurance subsidiaries as a whole. The reporting of our combined risk-based capital ratio is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities.



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Financial Supplement
A-6



Acronyms
AOCIAccumulated other comprehensive income (loss)
CTEConditional tail expectations
DACDeferred policy acquisition costs
FHLBFederal Home Loan Bank
GAAPAccounting principles generally accepted in the United States of America
GMABGuaranteed minimum accumulation benefits
GMDBGuaranteed minimum death benefits
GMIBGuaranteed minimum income benefits
GMWBGuaranteed minimum withdrawal benefits
LIMRALife Insurance Marketing and Research Association
NDGLNet derivative gains (losses)
NIGLNet investment gains (losses)
RBCRisk-based capital
TACTotal adjusted capital
ULSGUniversal life insurance with secondary guarantees
VAVariable annuity
VOBAValue of business acquired

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Financial Supplement
A-7



Reconciliation of Net Income (Loss) Available to Shareholders to Adjusted Earnings and Adjusted Earnings, Less Notable Items, and Reconciliation of Net Income (Loss) Available to Shareholders per Common Share to Adjusted Earnings per Common Share and Adjusted Earnings, Less Notable Items per Common Share (Unaudited, in millions except per share data)
For the Three Months Ended
ADJUSTED EARNINGS, LESS NOTABLE ITEMSSeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Net income (loss) available to shareholders$361$10$(610)$(1,045)$(3,012)
Less: Net investment gains (losses)(16)(34)143265
Less: Net derivative gains (losses), excluding investment hedge adjustments50(689)(1,509)(2,415)(1,862)
Less: GMIB Fees and GMIB Costs(83)75122236(957)
Less: Amortization of DAC and VOBA(64)12884280(86)
Less: Market value adjustments and other2(19)3111(41)
Less: Provision for income tax (expense) benefit on reconciling adjustments22114263328618
Adjusted earnings450435385189(689)
Less: Notable items(64)(23)(43)(83)(1,077)
Adjusted earnings, less notable items$514$458$428$272$388
ADJUSTED EARNINGS, LESS NOTABLE ITEMS PER COMMON SHARE (1), (2)
Net income (loss) available to shareholders per common share$4.34$0.11$(6.96)$(11.69)$(32.49)
Less: Net investment gains (losses)(0.19)(0.40)0.163.650.05
Less: Net derivative gains (losses), excluding investment hedge adjustments0.60(8.01)(17.23)(27.03)(20.09)
Less: GMIB Fees and GMIB Costs(1.00)0.871.392.64(10.32)
Less: Amortization of DAC and VOBA(0.77)1.490.963.13(0.93)
Less: Market value adjustments and other0.02(0.22)0.350.12(0.44)
Less: Provision for income tax (expense) benefit on reconciling adjustments0.261.323.003.676.67
Less: Impact of inclusion of dilutive shares0.030.02
Adjusted earnings per common share5.415.054.362.10(7.43)
Less: Notable items(0.77)(0.27)(0.49)(0.92)(11.62)
Adjusted earnings, less notable items per common share$6.17$5.32$4.86$3.03$4.19
(1) See definitions for Non-GAAP and Other Financial Disclosures in this Appendix.
(2) Per share calculations are on a diluted basis and may not recalculate or foot 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.

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Financial Supplement
A-8



Reconciliation of Return on Common Equity to Adjusted Return on Common Equity (Unaudited, dollars in millions)
Four Quarters Cumulative Trailing Basis
ADJUSTED EARNINGSSeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Net income (loss) available to shareholders$(1,284)$(4,657)$(6,665)$(1,105)$(1,137)
Less: Net investment gains (losses)290311311278(15)
Less: Net derivative gains (losses), excluding investment hedge adjustments(4,563)(6,475)(8,443)(36)482
Less: GMIB Fees and GMIB Costs350(524)(724)(1,012)(1,214)
Less: Amortization of DAC and VOBA428406527(228)(415)
Less: Market value adjustments and other25(18)25(49)(43)
Less: Provision for income tax (expense) benefit on reconciling adjustments7271,3231,743220253
Adjusted earnings$1,459$320$(104)$(278)$(185)
Five Quarters Average Stockholders' Equity Basis
BRIGHTHOUSE FINANCIAL, INC.’S COMMON STOCKHOLDERS’ EQUITY, EXCLUDING AOCISeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Brighthouse Financial, Inc.’s stockholders’ equity$16,690$17,666$18,518$18,749$18,683
Less: Preferred stock, net1,2481,137947758568
Brighthouse Financial, Inc.’s common stockholders’ equity15,44216,52917,57117,99118,115
Less: AOCI4,6744,8094,4204,3903,960
Brighthouse Financial, Inc.’s common stockholders’ equity, excluding AOCI$10,768$11,720$13,151$13,601$14,155
Five Quarters Average Common Stockholders' Equity Basis
ADJUSTED RETURN ON COMMON EQUITYSeptember 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Return on common equity(8.3)%(28.2)%(37.9)%(6.1)%(6.3)%
Return on AOCI(27.5)%(96.8)%(150.8)%(25.2)%(28.7)%
Return on common equity, excluding AOCI(11.9)%(39.7)%(50.7)%(8.1)%(8.0)%
Less: Return on net investment gains (losses)2.7%2.7%2.4%2.1%(0.1)%
Less: Return on net derivative gains (losses), excluding investment hedge adjustments(42.4)%(55.2)%(64.2)%(0.3)%3.4%
Less: Return on GMIB Fees and GMIB Costs3.3%(4.5)%(5.5)%(7.4)%(8.6)%
Less: Return on amortization of DAC and VOBA4.0%3.5%4.0%(1.7)%(2.9)%
Less: Return on market value adjustments and other0.2%(0.2)%0.1%(0.4)%(0.3)%
Less: Return on provision for income tax (expense) benefit on reconciling adjustments6.8%11.3%13.3%1.6%1.8%
Adjusted return on common equity13.5%2.7%(0.8)%(2.0)%(1.3)%

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Financial Supplement
A-9



Reconciliation of Total Revenues to Adjusted Revenues and Reconciliation of Total Expenses to Adjusted Expenses (Unaudited, in millions)
For the Three Months EndedFor the Nine Months Ended
September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
September 30,
2021
September 30,
2020
Total revenues$2,512$1,676$938$131$309$5,126$8,372
Less: Net investment gains (losses)(16)(34)143265(36)(48)
Less: Net derivative gains (losses)56(684)(1,504)(2,410)(1,857)(2,132)2,392
Less: GMIB Fees6263626368187196
Less: Investment hedge adjustments(6)(5)(5)(5)(5)(16)(13)
Less: Other(1)(2)11(1)(3)
Total adjusted revenues$2,417$2,338$2,371$2,146$2,099$7,126$5,845
Total expenses$2,022$1,655$1,706$1,437$4,152$5,383$8,485
Less: Amortization of DAC and VOBA64(128)(84)