EX-99.2 3 q42022bhffinancialsuppleme.htm EX-99.2 Document



Exhibit 99.2








Brighthouse Financial, Inc.
Financial Supplement

Fourth Quarter 2022

bhf-20191104_g11a.jpg    



Table of ContentsFinancial Results
Earnings and Select Metrics from 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.
bhf-20191104_g11a.jpg    










Financial Results
bhf-20191104_g11a.jpg    


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)December 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Net income (loss) available to shareholders$(967)$(702)$957$613$42
Adjusted earnings$242$97$24$294$323
Adjusted earnings, less notable items (2)$245$(3)$247$315$416
Total corporate expenses (3)$243$217$201$208$247
Combined total adjusted capital (4)$8,100$8,003$8,188$8,495$9,441
Combined risk-based capital ratio (4), (5)~440%450%-470%470%-490%450%-470%500%
Stockholders' Equity
Brighthouse Financial, Inc.’s stockholders’ equity$5,462$5,814$10,191$12,814$16,142
Less: Preferred stock, net1,6991,6991,6991,6991,699
Brighthouse Financial, Inc.’s common stockholders’ equity, including AOCI$3,763$4,115$8,492$11,115$14,443
Less: AOCI(5,935)(6,637)(3,091)3634,172
Brighthouse Financial, Inc.’s common stockholders’ equity, excluding AOCI $9,698$10,752$11,583$10,752$10,271
Return on Common Equity (1)
Return on common equity(1.2)%8.6%15.5%7.5%(1.3)%
Return on common equity, excluding AOCI(0.9)%8.5%18.6%9.9%(1.9)%
Adjusted return on common equity6.2%6.9%10.3%14.5%15.3%
Earnings Per Common Share, Diluted (1), (6)
Net income (loss) available to shareholders per common share$(14.01)$(9.82)$12.77$7.91$0.51
Adjusted earnings per common share$3.46$1.35$0.33$3.79$4.02
Adjusted earnings, less notable items per common share$3.51$(0.04)$3.29$4.07$5.18
Weighted average common shares outstanding69,765,11871,959,38074,971,65877,476,46580,244,577
Book Value Per Common Share
Book value per common share (1)$55.11$58.73$116.21$146.64$185.48
Book value per common share, excluding AOCI (1)$142.04$153.47$158.51$141.85$131.90
Ending common shares outstanding68,278,06870,060,56073,072,76675,799,70477,870,072
(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 December 31, 2022. 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.

bhf-20191104_g11a.jpg    


Financial Supplement
2



GAAP Statements of Operations (Unaudited, in millions)
For the Three Months EndedFor the Year Ended
RevenuesDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
December 31,
2022
December 31,
2021
Premiums$167$162$167$166$168$662$707
Universal life and investment-type product policy fees7337837848419063,1413,636
Net investment income1,0498771,0611,1511,2014,1384,881
Other revenues100121118137101476446
Revenues before NIGL and NDGL2,0491,9432,1302,2952,3768,4179,670
Net investment gains (losses)(69)(45)(66)(68)(23)(248)(59)
Net derivative gains (losses)(1,526)(416)1,733513(337)304(2,469)
Total revenues$454$1,482$3,797$2,740$2,016$8,473$7,142
Expenses
Policyholder benefits and claims$905$1,246$1,108$906$823$4,165$3,443
Interest credited to policyholder account balances4004303192903151,4391,312
Amortization of DAC and VOBA(16)179566227127956144
Interest expense on debt3938383841153163
Other expenses4504575534726611,9322,288
Total expenses1,7782,3502,5841,9331,9678,6457,350
Income (loss) before provision for income tax(1,324)(868)1,21380749(172)(208)
Provision for income tax expense (benefit)(384)(193)230165(15)(182)(105)
Net income (loss)(940)(675)9836426410(103)
Less: Net income (loss) attributable to noncontrolling interests122155
Net income (loss) attributable to Brighthouse Financial, Inc.(941)(677)983640635(108)
Less: Preferred stock dividends262526272110489
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders$(967)$(702)$957$613$42$(99)$(197)

bhf-20191104_g11a.jpg    


Financial Supplement
3



GAAP Balance Sheets (Unaudited, in millions)
As of
ASSETSDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Investments:
Fixed maturity securities available-for-sale$75,577$75,271$78,606$82,496$87,582
Equity securities891009680101
Mortgage loans22,93622,08921,50821,35719,850
Policy loans1,2821,2741,2771,2701,264
Limited partnerships and limited liability companies4,7754,6074,6834,5874,271
Short-term investments1,0811,1309201,0621,841
Other invested assets2,8524,0333,3452,5683,316
Total investments108,592108,504110,435113,420118,225
Cash and cash equivalents4,1154,7935,0714,1014,474
Accrued investment income885909852754724
Reinsurance recoverables18,51417,11615,64915,40115,340
Premiums and other receivables752761993889754
DAC and VOBA5,6595,6395,4345,5815,377
Current income tax recoverable381818
Deferred income tax asset1,7541,619471
Other assets442446445465482
Separate account assets84,96581,83688,843104,441114,464
Total assets$225,716$221,641$228,211$245,052$259,840
LIABILITIES AND EQUITY
Liabilities
Future policy benefits$42,216$41,786$41,142$41,979$43,807
Policyholder account balances74,83671,32368,29367,88766,851
Other policy-related balances3,4003,3643,2733,4573,457
Payables for collateral under securities loaned and other transactions4,5606,5326,6756,2096,269
Long-term debt3,1563,1563,1573,1573,157
Current income tax payable6162
Deferred income tax liability2151,062
Other liabilities7,0567,7656,5724,7674,504
Separate account liabilities84,96581,83688,843104,441114,464
Total liabilities220,189215,762217,955232,173243,633
Equity
Preferred stock, at par value
Common stock, at par value11111
Additional paid-in capital14,07514,09514,11314,13314,154
Retained earnings (deficit)(637)304981(2)(642)
Treasury stock(2,042)(1,949)(1,813)(1,681)(1,543)
Accumulated other comprehensive income (loss)(5,935)(6,637)(3,091)3634,172
Total Brighthouse Financial, Inc.’s stockholders’ equity5,4625,81410,19112,81416,142
Noncontrolling interests6565656565
Total equity5,5275,87910,25612,87916,207
Total liabilities and equity$225,716$221,641$228,211$245,052$259,840

bhf-20191104_g11a.jpg    









Earnings and Select
Metrics from
Segments and Corporate & Other

bhf-20191104_g11a.jpg    


Financial Supplement
5



Statements of Adjusted Earnings by Segment and Corporate & Other (Unaudited, in millions)
For the Three Months Ended December 31, 2022
Adjusted revenuesAnnuitiesLifeRun-offCorporate & OtherTotal
Premiums$39$109$—$19$167
Universal life and investment-type product policy fees47262139673
Net investment income613872471351,082
Other revenues8587100
Total adjusted revenues$1,209$266$393$154$2,022
Adjusted expenses
Policyholder benefits and claims$173$169$428$15$785
Interest credited to policyholder account balances232227373400
Amortization of DAC and VOBA89503142
Interest expense on debt3939
Other operating costs3605345(8)450
Total adjusted expenses8542945461221,816
Adjusted earnings before provision for income tax355(28)(153)32206
Provision for income tax expense (benefit)69(8)(33)(91)(63)
Adjusted earnings after provision for income tax286(20)(120)123269
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends2727
Adjusted earnings$286$(20)$(120)$96$242
For the Three Months Ended December 31, 2021
Adjusted revenuesAnnuitiesLifeRun-offCorporate & OtherTotal
Premiums$39$109$—$20$168
Universal life and investment-type product policy fees61880145843
Net investment income567156444391,206
Other revenues8688102
Total adjusted revenues$1,310$353$597$59$2,319
Adjusted expenses
Policyholder benefits and claims$159$186$483$18$846
Interest credited to policyholder account balances195288110314
Amortization of DAC and VOBA491353
Interest expense on debt4141
Other operating costs4235456128661
Total adjusted expenses8262696202001,915
Adjusted earnings before provision for income tax48484(23)(141)404
Provision for income tax expense (benefit)941722(74)59
Adjusted earnings after provision for income tax39067(45)(67)345
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends 2222
Adjusted earnings$390$67$(45)$(89)$323

bhf-20191104_g11a.jpg    


Financial Supplement
6


Statements of Adjusted Earnings by Segment and Corporate & Other (Cont.) (Unaudited, in millions)
For the Year Ended December 31, 2022
Adjusted revenuesAnnuitiesLifeRun-offCorporate & OtherTotal
Premiums$123$463$2$74$662
Universal life and investment-type product policy fees2,0562326112,899
Net investment income2,2614261,1663564,209
Other revenues4311629476
Total adjusted revenues$4,871$1,137$1,808$430$8,246
Adjusted expenses
Policyholder benefits and claims$1,072$794$1,580$26$3,472
Interest credited to policyholder account balances897753021641,438
Amortization of DAC and VOBA351127(11)467
Interest expense on debt153153
Other operating costs1,4171182931041,932
Total adjusted expenses3,7371,1142,1754367,462
Adjusted earnings before provision for income tax1,13423(367)(6)784
Provision for income tax expense (benefit)2081(78)(113)18
Adjusted earnings after provision for income tax92622(289)107766
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends109109
Adjusted earnings$926$22$(289)$(2)$657
For the Year Ended December 31, 2021
Adjusted revenuesAnnuitiesLifeRun-offCorporate & OtherTotal
Premiums$142$483$3$79$707
Universal life and investment-type product policy fees2,4703016153,386
Net investment income2,2176731,9101024,902
Other revenues3873429450
Total adjusted revenues$5,216$1,491$2,557$181$9,445
Adjusted expenses
Policyholder benefits and claims$717$819$1,807$70$3,413
Interest credited to policyholder account balances864108315211,308
Amortization of DAC and VOBA1852211218
Interest expense on debt163163
Other operating costs1,6541801912632,288
Total adjusted expenses3,4201,1292,3135287,390
Adjusted earnings before provision for income tax1,796362244(347)2,055
Provision for income tax expense (benefit)3477553(107)368
Adjusted earnings after provision for income tax1,449287191(240)1,687
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends9494
Adjusted earnings$1,449$287$191$(334)$1,593

bhf-20191104_g11a.jpg    


Financial Supplement
7


Annuities — Statements of Adjusted Earnings (Unaudited, in millions)
For the Three Months EndedFor the Year Ended
Adjusted revenuesDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
December 31,
2022
December 31,
2021
Premiums$39$30$29$25$39$123$142
Universal life and investment-type product policy fees4724955215686182,0562,470
Net investment income6135475465555672,2612,217
Other revenues8511111112486431387
Total adjusted revenues$1,209$1,183$1,207$1,272$1,310$4,871$5,216
Adjusted expenses
Policyholder benefits and claims$173$439$268$192$159$1,072$717
Interest credited to policyholder account balances232283192190195897864
Amortization of DAC and VOBA89(32)16013449351185
Interest expense on debt
Other operating costs3603453393734231,4171,654
Total adjusted expenses8541,0359598898263,7373,420
Adjusted earnings before provision for income tax3551482483834841,1341,796
Provision for income tax expense (benefit)6923447294208347
Adjusted earnings$286$125$204$311$390$926$1,449

bhf-20191104_g11a.jpg    


Financial Supplement
8


Annuities — Select Operating Metrics (Unaudited, in millions)
For the Three Months Ended
VARIABLE AND SHIELD LEVEL ANNUITIES ACCOUNT VALUE (1)December 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Account value, beginning of period$105,392$112,139$128,397$136,881$133,155
Premiums and deposits (2)1,5951,7022,0351,8762,111
Withdrawals, surrenders and contract benefits(2,717)(2,504)(2,500)(2,758)(3,231)
Net flows (3)(1,122)(802)(465)(882)(1,120)
Investment performance (4)7,121(5,363)(15,219)(7,026)5,496
Policy charges and other(540)(582)(574)(576)(650)
Account value, end of period$110,851$105,392$112,139$128,397$136,881
FIXED ANNUITIES ACCOUNT VALUE (5)
Account value, beginning of period$17,938$16,028$15,671$15,603$15,536
Premiums and deposits (2)1,6562,055503241316
Withdrawals, surrenders and contract benefits(587)(283)(237)(266)(331)
Net flows (3)1,0691,772266(25)(15)
Interest credited(228)109968992
Other(27)29(5)4(10)
Account value, end of period$18,752$17,938$16,028$15,671$15,603
INCOME ANNUITIES (1)
Income annuity insurance liabilities$4,569$4,576$4,587$4,613$4,644
(1) Includes general account and separate account.
(2) Includes premiums and deposits directed to the general account investment option of variable products.
(3) Deposits and withdrawals include policy exchanges.
(4) Includes the interest credited on the general account option of variable products.
(5) Includes fixed index annuities.
bhf-20191104_g11a.jpg    


Financial Supplement
9


Annuities — Select Operating Metrics (Cont.) (Unaudited, in millions)
For the Three Months EndedFor the Year Ended
VARIABLE AND SHIELD LEVEL ANNUITY SALESDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
December 31,
2022
December 31,
2021
Shield Level Annuities (1)$1,389$1,436$1,629$1,394$1,551$5,848$6,201
GMWB1011492683343938521,548
GMDB only5569758784286376
GMIB9101317184976
Total variable and Shield Level annuity sales$1,554$1,664$1,985$1,832$2,046$7,035$8,201
FIXED AND INCOME ANNUITY SALES
Fixed index annuities (2)$161$213$206$196$292$776$845
Fixed deferred annuities1,4931,84129341193,668102
Single premium immediate annuities3221182
Other fixed and income annuities1112
Total fixed and income annuity sales$1,657$2,057$501$238$313$4,453$951
(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.

bhf-20191104_g11a.jpg    


Financial Supplement
10


Life — Statements of Adjusted Earnings (Unaudited, in millions)
For the Three Months EndedFor the Year Ended
Adjusted revenuesDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
December 31,
2022
December 31,
2021
Premiums$109$113$119$122$109$463$483
Universal life and investment-type product policy fees6266455980232301
Net investment income8774112153156426673
Other revenues82681634
Total adjusted revenues$266$255$276$340$353$1,137$1,491
Adjusted expenses
Policyholder benefits and claims$169$185$187$253$186$794$819
Interest credited to policyholder account balances22242542875108
Amortization of DAC and VOBA50183326112722
Interest expense on debt
Other operating costs533732554118180
Total adjusted expenses2942642483082691,1141,129
Adjusted earnings before provision for income tax(28)(9)28328423362
Provision for income tax expense (benefit)(8)(2)5617175
Adjusted earnings$(20)$(7)$23$26$67$22$287

bhf-20191104_g11a.jpg    


Financial Supplement
11


Life — Select Operating Metrics (Unaudited, in millions)
For the Three Months Ended
LIFE ACCOUNT VALUE: GENERAL ACCOUNTDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Universal and variable universal life account value, beginning of period$2,663$2,678$2,671$2,694$2,680
Premiums and deposits (1)5454545686
Withdrawals, surrenders and contract benefits(33)(44)(34)(42)(33)
Net flows2110201453
Net transfers from (to) separate account7917155
Interest credited242424528
Policy charges and other (57)(58)(54)(57)(72)
Universal and variable universal life account value, end of period$2,658$2,663$2,678$2,671$2,694
LIFE ACCOUNT VALUE: SEPARATE ACCOUNT
Variable universal life account value, beginning of period$4,912$5,251$6,262$6,861$6,598
Premiums and deposits4444434547
Withdrawals, surrenders and contract benefits(43)(64)(52)(68)(81)
Net flows1(20)(9)(23)(34)
Investment performance364(263)(929)(513)357
Net transfers from (to) general account(10)(9)(16)(15)(5)
Policy charges and other(52)(47)(57)(48)(55)
Variable universal life account value, end of period$5,215$4,912$5,251$6,262$6,861
(1) Includes premiums and deposits directed to the general account investment option of variable products.
bhf-20191104_g11a.jpg    


Financial Supplement
12


Life — Select Operating Metrics (Cont.) (Unaudited, in millions)
For the Three Months EndedFor the Year Ended
LIFE SALESDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
December 31,
2022
December 31,
2021
Total life sales$22$19$19$20$35$80$111
As of
LIFE INSURANCE IN-FORCEDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Whole Life
Life Insurance in-force, before reinsurance$18,264$18,422$18,490$18,645$18,819
Life Insurance in-force, net of reinsurance$3,069$3,156$3,113$3,153$3,196
Term Life
Life Insurance in-force, before reinsurance$360,611$364,251$368,082$372,019$376,022
Life Insurance in-force, net of reinsurance$288,522$290,746$292,839$295,051$297,053
Universal and Variable Universal Life
Life Insurance in-force, before reinsurance$46,000$46,336$46,876$48,063$49,063
Life Insurance in-force, net of reinsurance$34,463$34,597$34,981$36,118$37,016

bhf-20191104_g11a.jpg    


Financial Supplement
13


Run-off — Statements of Adjusted Earnings (Unaudited, in millions)
For the Three Months EndedFor the Year Ended
Adjusted revenuesDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
December 31,
2022
December 31,
2021
Premiums$—$2$—$—$—$2$3
Universal life and investment-type product policy fees139161157154145611615
Net investment income2471683504014441,1661,910
Other revenues787782929
Total adjusted revenues$393$339$514$562$597$1,808$2,557
Adjusted expenses
Policyholder benefits and claims$428$255$480$417$483$1,580$1,807
Interest credited to policyholder account balances7373758181302315
Amortization of DAC and VOBA
Interest expense on debt
Other operating costs45381664456293191
Total adjusted expenses5463667215426202,1752,313
Adjusted earnings before provision for income tax(153)(27)(207)20(23)(367)244
Provision for income tax expense (benefit)(33)(6)(43)422(78)53
Adjusted earnings$(120)$(21)$(164)$16$(45)$(289)$191

bhf-20191104_g11a.jpg    


Financial Supplement
14


Run-off — Select Operating Metrics (Unaudited, in millions)
For the Three Months Ended
UNIVERSAL LIFE WITH SECONDARY GUARANTEES ACCOUNT VALUEDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Account value, beginning of period$5,380$5,454$5,512$5,569$5,629
Premiums and deposits (1)167173180177170
Withdrawals, surrenders and contract benefits(32)(32)(21)(32)(26)
Net flows135141159145144
Interest credited4646456250
Policy charges and other(254)(261)(262)(264)(254)
Account value, end of period$5,307$5,380$5,454$5,512$5,569
As of
LIFE INSURANCE IN-FORCEDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Universal Life with Secondary Guarantees
Life Insurance in-force, before reinsurance$72,276$72,847$73,393$73,813$74,535
Life Insurance in-force, net of reinsurance$35,980$36,308$36,611$36,887$37,206
(1) Includes premiums and deposits directed to the general account investment option of variable products.

bhf-20191104_g11a.jpg    


Financial Supplement
15


Corporate & Other — Statements of Adjusted Earnings (Unaudited, in millions)
For the Three Months EndedFor the Year Ended
Adjusted revenuesDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
December 31,
2022
December 31,
2021
Premiums$19$17$19$19$20$74$79
Universal life and investment-type product policy fees
Net investment income135111624839356102
Other revenues
Total adjusted revenues$154$128$81$67$59$430$181
Adjusted expenses
Policyholder benefits and claims$15$(9)$7$13$18$26$70
Interest credited to policyholder account balances735027141016421
Amortization of DAC and VOBA3(19)233(11)11
Interest expense on debt3938383841153163
Other operating costs(8)374530128104263
Total adjusted expenses1229711998200436528
Adjusted earnings before provision for income tax3231(38)(31)(141)(6)(347)
Provision for income tax expense (benefit)(91)4(25)(1)(74)(113)(107)
Adjusted earnings after provision for income tax12327(13)(30)(67)107(240)
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends
272726292210994
Adjusted earnings$96$—$(39)$(59)$(89)$(2)$(334)

bhf-20191104_g11a.jpg    










Other
Information

bhf-20191104_g11a.jpg    


Financial Supplement
17



DAC and VOBA and Net Derivative Gains (Losses) (Unaudited, in millions)
For the Three Months Ended
DAC AND VOBA ROLLFORWARDDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Balance, beginning of period$5,639$5,434$5,581$5,377$5,356
Capitalization97104115109133
Amortization:
Included in adjusted earnings, excluding notable items(123)(157)(195)(163)(53)
Related to notable items, included in adjusted expenses(19)190
Related to items not included in adjusted expenses158(212)(371)(64)(74)
Total amortization16(179)(566)(227)(127)
Unrealized investment gains (losses)(93)28030432215
Balance, end of period$5,659$5,639$5,434$5,581$5,377
As of
DAC AND VOBA BY SEGMENT AND CORPORATE & OTHERDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Annuities$4,682$4,604$4,434$4,560$4,331
Life867922906925947
Run-off44444
Corporate & Other106109909295
Total DAC and VOBA$5,659$5,639$5,434$5,581$5,377
For the Three Months Ended
NET DERIVATIVE GAINS (LOSSES)December 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Net derivative gains (losses):
Variable annuity hedges and embedded derivatives, net$(1,196)$(39)$2,329$953$(689)
ULSG hedges(192)(483)(659)(540)313
Other hedges and embedded derivatives(171)83549434
Subtotal(1,559)(439)1,724507(342)
Investment hedge adjustments3323965
Total net derivative gains (losses)$(1,526)$(416)$1,733$513$(337)

bhf-20191104_g11a.jpg    


Financial Supplement
18



Notable Items (Unaudited, in millions)
For the Three Months Ended
NOTABLE ITEMS IMPACTING ADJUSTED EARNINGSDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Actuarial items and other insurance adjustments$39$(117)$214$9$13
Establishment costs151791221
Debt repayment costs59
Prior year tax matters(51)
Total notable items (1)$3$(100)$223$21$93
NOTABLE ITEMS BY SEGMENT AND CORPORATE & OTHER
Annuities$—$45$14$—$(29)
Life15529(9)
Run-off24(128)19851
Corporate & Other(36)(22)91280
Total notable items (1)$3$(100)$223$21$93
(1) See definitions for Non-GAAP and Other Financial Disclosures in the Appendix beginning on page A-2.

bhf-20191104_g11a.jpg    


Financial Supplement
19



Variable Annuity Separate Account Returns and Allocations (Unaudited)
For the Three Months Ended
VARIABLE ANNUITY SEPARATE ACCOUNT RETURNSDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Total Quarterly VA separate account gross returns6.82%(5.41)%(12.58)%(6.36)%4.60%
TOTAL VARIABLE ANNUITY SEPARATE ACCOUNT ALLOCATIONS
Percent allocated to equity funds27.40%27.97%27.60%29.43%29.62%
Percent allocated to bond funds/other funds8.82%9.48%9.29%8.72%8.57%
Percent allocated to target volatility funds20.28%20.56%21.01%19.66%19.87%
Percent allocated to balanced funds43.50%41.99%42.10%42.19%41.94%

bhf-20191104_g11a.jpg    


Financial Supplement
20



Summary of Investments (Unaudited, dollars in millions)
December 31, 2022December 31, 2021
Amount% of TotalAmount% of Total
Fixed maturity securities:
U.S. corporate securities$32,60728.93%$39,08131.85%
Foreign corporate securities10,5769.38%11,7069.54%
U.S. government and agency securities8,0167.11%9,3077.59%
Residential mortgage-backed securities7,5286.68%9,2597.55%
Commercial mortgage-backed securities6,6115.87%7,2825.93%
Asset-backed securities5,3594.75%4,2803.49%
State and political subdivision securities3,7993.37%4,8353.94%
Foreign government securities1,0810.96%1,8321.49%
Total fixed maturity securities75,57767.05%87,58271.38%
Equity securities890.08%1010.08%
Mortgage loans:
Commercial mortgage loans13,57412.04%12,1879.93%
Residential mortgage loans5,1164.54%3,6232.96%
Agricultural mortgage loans4,3653.87%4,1633.39%
Allowance for credit losses(119)(0.10)%(123)(0.10)%
Total mortgage loans, net22,93620.35%19,85016.18%
Policy loans1,2821.14%1,2641.03%
Limited partnerships and limited liability companies4,7754.24%4,2713.48%
Cash, cash equivalents and short-term investments5,1964.61%6,3155.15%
Other invested assets:
Derivatives:
Interest rate3040.27%1,0940.89%
Equity market1,2171.08%1,6651.36%
Foreign currency exchange rate7450.66%3280.27%
Credit180.02%390.03%
Total derivatives2,2842.03%3,1262.55%
ICOLI2500.22%0.00%
FHLB common stock2010.18%700.05%
Other1170.10%1200.10%
Total other invested assets2,8522.53%3,3162.70%
Total investments and cash and cash equivalents$112,707100.00%$122,699100.00%
For the Three Months Ended
December 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Net investment income yield (1)3.79%3.20%3.92%4.36%4.66%
(1) See definitions for Non-GAAP and Other Financial Disclosures in the Appendix beginning on page A-2.

bhf-20191104_g11a.jpg    


Financial Supplement
21



Statutory Statement of Operations Information (Unaudited, in millions except Normalized Statutory Earnings (Loss))
For the Three Months EndedFor the Year Ended
COMBINED REVENUES AND EXPENSES (1)PRELIMINARY
December 31,
2022 (2)
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
PRELIMINARY
December 31,
2022 (2)
December 31,
2021
Total revenues (Line 9)$2,100$5,089$7,081$4,165$3,324$18,435$14,353
Total benefits and expenses before dividends to policyholders (Line 28)
$1,500$4,165$6,920$4,619$3,537$17,204$13,236
COMBINED NET INCOME (LOSS) (1)
Gain (loss) from operations net of taxes and dividends to policyholders (Line 33)
$700$869$154$(424)$(196)$1,299$1,154
Net realized capital gains (losses), net of taxes and certain transfers to interest maintenance reserve (Line 34)
(400)(76)46042(87)26(1,322)
Net income (loss) (Line 35)$300$793$614$(382)$(283)$1,325$(168)
For the Year Ended
NORMALIZED STATUTORY EARNINGS (LOSS) (3), (4)PRELIMINARY
December 31,
2022 (2)
December 31,
2021
(In billions)
Statutory net gain (loss) from operations, pre-tax$1.0$—
Add: net realized capital gains (losses)0.4
Add: change in total asset requirement at CTE98, net of the change in VA reserves0.7
Add: unrealized gains (losses) on VA & Shield hedging program and other equity risk management strategies
(1.6)
Add: impact of actuarial items and other insurance adjustments0.4
Add: other adjustments, net0.1
Normalized statutory earnings (loss)$1.0$—
(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 year ended December 31, 2022.
(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.


bhf-20191104_g11a.jpg    


Financial Supplement
22



Statutory Balance Sheet and Surplus Information (Unaudited, in millions)
As of
COMBINED ASSETS, LIABILITIES, AND CAPITAL AND SURPLUS (1)                                                    PRELIMINARY
December 31,
2022 (2)
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Total assets (Line 28)$188,600$187,747$192,672$203,117$210,819
Total liabilities (Line 28)$182,100$181,264$186,053$196,196$202,918
Total capital and surplus (Line 38)$6,500$6,483$6,619$6,921$7,901
COMBINED TAC AND RBC RATIO (1), (3)
Combined total adjusted capital$8,100$8,003$8,188$8,495$9,441
Combined risk-based capital ratio (4)~440%450%-470%470%-490%450%-470%500%
As of
COMBINED ORDINARY DIVIDEND CAPACITY (1)December 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Dividends paid to Holding Company$38$—$—$—$344
Remaining ordinary dividend capacity (5)$1,474$1,512$1,512$1,512$244
(1) Combined statutory results are for Brighthouse Life Insurance Company and New England Life Insurance Company.
(2) Reflects preliminary statutory results as of December 31, 2022.
(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.

bhf-20191104_g11a.jpg    










Appendix

bhf-20191104_g11a.jpg    


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 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 risks associated with climate change; 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 events, military actions 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, 2021, 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.

bhf-20191104_g11a.jpg    


Financial Supplement
A-2



Non-GAAP and Other Financial Disclosures

Our definitions of 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 enhance the understanding of our performance by the investor community by highlighting the results of operations and the underlying profitability drivers of our business.

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 and facilitate comparisons to industry results. This financial measure, which may be positive or negative, focuses on our primary businesses 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.
bhf-20191104_g11a.jpg    


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 (“Market Value Adjustments”); and

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

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 GAAP net investment income plus Investment Hedge Adjustments.

bhf-20191104_g11a.jpg    


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 unfavorable (favorable) after-tax 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.

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.
bhf-20191104_g11a.jpg    


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, which represents 100 percent of gross sales on directly written business and the proportion of assumed gross sales under reinsurance agreements. 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 percentage 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 percentage 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 (loss) from operations adjusted for the favorable or unfavorable impacts of (i) net realized capital gains (losses), (ii) the change in total asset requirement at CTE98, net of the change in our variable annuity reserves, and (iii) unrealized gains (losses) associated with our variable annuities and other equity risk management strategies. 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.



bhf-20191104_g11a.jpg    


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
GMDBGuaranteed minimum death benefits
GMIBGuaranteed minimum income benefits
GMWBGuaranteed minimum withdrawal benefits
ICOLIInsurance company-owned life insurance
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

bhf-20191104_g11a.jpg    


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 ITEMSDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Net income (loss) available to shareholders$(967)$(702)$957$613$42
Less: Net investment gains (losses)(69)(45)(66)(68)(23)
Less: Net derivative gains (losses), excluding investment hedge adjustments(1,559)(439)1,724507(342)
Less: GMIB Fees and GMIB Costs(57)(336)(136)(9)89
Less: Amortization of DAC and VOBA158(212)(371)(64)(74)
Less: Market value adjustments and other(3)213137(5)
Less: Provision for income tax (expense) benefit on reconciling adjustments321212(249)(84)74
Adjusted earnings2429724294323
Less: Notable items(3)100(223)(21)(93)
Adjusted earnings, less notable items$245$(3)$247$315$416
ADJUSTED EARNINGS, LESS NOTABLE ITEMS PER COMMON SHARE (1), (2)
Net income (loss) available to shareholders per common share$(14.01)$(9.82)$12.77$7.91$0.51
Less: Net investment gains (losses)(1.00)(0.63)(0.88)(0.88)(0.29)
Less: Net derivative gains (losses), excluding investment hedge adjustments(22.58)(6.14)23.006.54(4.26)
Less: GMIB Fees and GMIB Costs(0.83)(4.70)(1.81)(0.12)1.11
Less: Amortization of DAC and VOBA2.29(2.96)(4.95)(0.83)(0.92)
Less: Market value adjustments and other(0.04)0.290.410.48(0.06)
Less: Provision for income tax (expense) benefit on reconciling adjustments4.652.96(3.32)(1.08)0.92
Less: Impact of inclusion of dilutive shares0.040.01
Adjusted earnings per common share3.461.350.333.794.02
Less: Notable items(0.04)1.39(2.97)(0.27)(1.16)
Adjusted earnings, less notable items per common share$3.51$(0.04)$3.29$4.07$5.18
(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.

bhf-20191104_g11a.jpg    


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 EARNINGSDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Net income (loss) available to shareholders$(99)$910$1,973$1,026$(197)
Less: Net investment gains (losses)(248)(202)(173)(141)(59)
Less: Net derivative gains (losses), excluding investment hedge adjustments2331,4501,939(474)(2,490)
Less: GMIB Fees and GMIB Costs(538)(392)(139)72203
Less: Amortization of DAC and VOBA(489)(721)(573)(74)74
Less: Market value adjustments and other868465159
Less: Provision for income tax (expense) benefit on reconciling adjustments200(47)(237)126473
Adjusted earnings$657$738$1,091$1,502$1,593
Five Quarters Average Stockholders' Equity Basis
BRIGHTHOUSE FINANCIAL, INC.’S COMMON STOCKHOLDERS’ EQUITY, EXCLUDING AOCIDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Brighthouse Financial, Inc.’s stockholders’ equity$10,085$12,198$14,259$15,224$16,266
Less: Preferred stock, net1,6991,6311,5631,4961,428
Brighthouse Financial, Inc.’s common stockholders’ equity8,38610,56712,69613,72814,838
Less: AOCI(2,226)(181)2,0663,3624,433
Brighthouse Financial, Inc.’s common stockholders’ equity, excluding AOCI$10,612$10,748$10,630$10,366$10,405
Five Quarters Average Common Stockholders' Equity Basis
ADJUSTED RETURN ON COMMON EQUITYDecember 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Return on common equity(1.2)%8.6%15.5%7.5%(1.3)%
Return on AOCI4.4%(502.8)%95.5%30.5%(4.4)%
Return on common equity, excluding AOCI(0.9)%8.5%18.6%9.9%(1.9)%
Less: Return on net investment gains (losses)(2.3)%(1.9)%(1.6)%(1.4)%(0.6)%
Less: Return on net derivative gains (losses), excluding investment hedge adjustments2.2%13.5%18.2%(4.6)%(23.9)%
Less: Return on GMIB Fees and GMIB Costs(5.1)%(3.6)%(1.3)%0.7%2.0%
Less: Return on amortization of DAC and VOBA(4.6)%(6.7)%(5.4)%(0.7)%0.7%
Less: Return on market value adjustments and other0.8%0.7%0.6%0.2%0.1%
Less: Return on provision for income tax (expense) benefit on reconciling adjustments1.9%(0.4)%(2.2)%1.2%4.5%
Adjusted return on common equity6.2%6.9%10.3%14.5%15.3%

bhf-20191104_g11a.jpg    


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 Year Ended
December 31,
2022
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
December 31,
2022
December 31,
2021
Total revenues$454$1,482$3,797$2,740$2,016$8,473$7,142
Less: Net investment gains (losses)(69)(45)(66)(68)(23)(248)(59)
Less: Net derivative gains (losses)(1,526)(416)1,733513(337)304(2,469)
Less: GMIB Fees6061616063242250
Less: Investment hedge adjustments(33)(23)(9)(6)(5)(71)(21)
Less: Other(1)(4)
Total adjusted revenues$2,022$1,905$2,078$2,241$2,319$8,246