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Condensed Financial Information
 12 Months Ended
Dec. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Financial Information (Parent Company)
Brighthouse Life Insurance Company
Schedule II
Condensed Financial Information
(Parent Company Only)
December 31, 2017 and 2016
(In millions, except share and per share data)
 
 
2017
 
2016
Condensed Balance Sheets
 
 
 
 
Assets
 
 
 
 
Investments:
 
 
 
 
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $50,878 and $49,356, respectively)
 
$
55,180

 
$
51,880

Equity securities available-for-sale, at estimated fair value (cost: $193 and $280, respectively)
 
210

 
300

Mortgage loans (net of valuation allowances of $44 and $38, respectively)
 
10,127

 
8,746

Policy loans
 
1,106

 
1,093

Real estate and real estate joint ventures
 
419

 
200

Other limited partnership interests
 
1,662

 
1,632

Short-term investments, principally at estimated fair value
 
269

 
926

Investment in subsidiaries
 
5,681

 
7,338

Other invested assets, at estimated fair value
 
2,291

 
3,712

Total investments
 
76,945

 
75,827

Cash and cash equivalents
 
1,249

 
1,881

Accrued investment income
 
511

 
591

Premium, reinsurance and other receivable
 
9,658

—

10,397

Receivable from subsidiaries
 
10,397

 
9,703

Deferred policy acquisition costs and value of business acquired
 
5,123

 
5,274

Current income tax recoverable
 
39

 
454

Deferred income tax receivable
 
1,247

 
1,016

Other assets, principally at estimated fair value
 
536

 
667

Separate account assets
 
105,135

 
100,588

Total assets
 
$
210,840

 
$
206,398

Liabilities and Stockholder’s Equity
 
 
 
 
Liabilities
 
 
 
 
Future policy benefits
 
$
35,003

 
$
31,684

Policyholder account balances
 
36,034

 
35,588

Other policy-related balances
 
3,347

 
3,384

Payables for collateral under securities loaned and other transactions
 
4,153

 
7,362

Long-term debt
 
—

 
744

Other liabilities
 
10,315

 
10,183

Separate account liabilities
 
105,135

 
100,588

Total liabilities
 
193,987

 
189,533

Stockholder’s Equity
 
 
 
 
Common stock, par value $25,000 per share; 4,000 shares authorized; 3,000 shares issued and outstanding
 
75

 
75

Additional paid-in capital
 
19,073

 
18,461

Retained earnings (deficit)
 
(4,132
)
 
(2,919
)
Accumulated other comprehensive income (loss)
 
1,837

 
1,248

Total stockholder’s equity
 
16,853

 
16,865

Total liabilities and stockholder’s equity
 
$
210,840

 
$
206,398

See accompanying notes to the condensed financial information.
Brighthouse Life Insurance Company
Schedule II
Condensed Financial Information (continued)
(Parent Company Only)
For the Years Ended December 31, 2017, 2016 and 2015
(In millions)
 
 
2017
 
2016
 
2015
Condensed Statements of Operations
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
Premiums
 
$
283

 
$
921

 
$
1,433

Universal life and investment-type product policy fees
 
2,774

 
2,696

 
2,940

Equity in earnings of subsidiaries
 
1,221

 
157

 
144

Net investment income
 
2,613

 
2,680

 
2,550

Other revenues
 
402

 
760

 
504

Net investment gains (losses)
 
(7
)
 
(2
)
 
20

Net derivative gains (losses)
 
(1,425
)
 
(5,878
)
 
(424
)
Total revenues
 
5,861

 
1,334

 
7,167

Expenses
 
 
 
 
 
 
Policyholder benefits and claims
 
2,862

 
2,984

 
2,696

Interest credited to policyholder account balances
 
909

 
957

 
1,037

Amortization of deferred policy acquisition costs and value of business acquired
 
310

 
(172
)
 
595

Other expenses
 
1,848

 
2,114

 
1,710

Total expenses
 
5,929

 
5,883

 
6,038

Income (loss) before provision for income tax
 
(68
)
 
(4,549
)
 
1,129

Provision for income tax expense (benefit)
 
815

 
(1,774
)
 
211

Net income (loss)
 
$
(883
)
 
$
(2,775
)
 
$
918

Comprehensive income (loss)
 
$
(294
)
 
$
(3,121
)
 
$
(110
)
See accompanying notes to the condensed financial information.
Brighthouse Life Insurance Company
Schedule II
Condensed Financial Information (continued)
(Parent Company Only)
For the Years Ended December 31, 2017, 2016 and 2015
(In millions)
 
 
2017
 
2016
 
2015
Condensed Statements of Cash Flows
 
 
 
 
 
 
Net cash provided by (used in) operating activities
 
$
3,460

 
$
3,256

 
$
4,196

Cash flows from investing activities
 
 
 
 
 
 
Sales, maturities and repayments of:
 
 
 
 
 
 
Fixed maturity securities
 
14,667

 
39,104

 
35,728

Equity securities
 
119

 
175

 
308

Mortgage loans
 
704

 
1,484

 
958

Real estate and real estate joint ventures
 
75

 
441

 
368

Other limited partnership interests
 
258

 
413

 
422

Purchases of:
 
 
 
 
 
 
Fixed maturity securities
 
(16,287
)
 
(34,906
)
 
(39,298
)
Equity securities
 
(2
)
 
(58
)
 
(273
)
Mortgage loans
 
(2,017
)
 
(2,803
)
 
(2,515
)
Real estate and real estate joint ventures
 
(268
)
 
(75
)
 
(105
)
Other limited partnership interests
 
(263
)
 
(203
)
 
(233
)
Cash received in connection with freestanding derivatives
 
1,858

 
707

 
223

Cash paid in connection with freestanding derivatives
 
(3,829
)
 
(2,764
)
 
(868
)
Cash received under repurchase agreements
 
—

 
—

 
199

Cash paid under repurchase agreements
 
—

 
—

 
(199
)
Cash received under reverse repurchase agreements
 
—

 
—

 
199

Cash paid under reverse repurchase agreements
 
—

 
—

 
(199
)
Sale of operating joint venture interest to a former affiliate
 
67

 
—

 
—

Returns of capital from subsidiaries
 
7

 
32

 
169

Capital contributions to subsidiaries
 
(83
)
 
(1
)
 
(2
)
Dividends from subsidiaries
 
544

 
—

 
—

Net change in policy loans
 
(14
)
 
109

 
(72
)
Net change in short-term investments
 
711

 
876

 
(495
)
Net change in other invested assets
 
(41
)
 
5

 
(59
)
Net cash provided by (used in) investing activities
 
(3,794
)
 
2,536

 
(5,744
)
Cash flows from financing activities
 
 
 
 
 


Policyholder account balances:
 
 
 
 
 
 
Deposits
 
3,845

 
9,672

 
19,970

Withdrawals
 
(2,360
)
 
(12,001
)
 
(20,797
)
Net change in payables for collateral under securities loaned and other transactions
 
(3,136
)
 
(3,257
)
 
3,118

Long-term debt issued
 
—

 
—

 
175

Long-term debt repaid
 
—

 
—

 
(148
)
Capital contributions
 
1,300

 
1,568

 
11

Capital contribution associated with the sale of operating joint venture interest to a former affiliate

 
202

 
—

 
—

Dividends paid to MetLife, Inc.
 
—

 
(261
)
 
(500
)
Financing element on certain derivative instruments and other derivative related transactions, net
 
(149
)
 
(1,011
)
 
(97
)
Net cash provided by (used in) financing activities
 
(298
)
 
(5,290
)
 
1,732

Effect of change in foreign currency exchange rates on cash and cash equivalents balances
 
—

 
—

 
(2
)
Change in cash and cash equivalents
 
(632
)
 
502

 
182

Cash and cash equivalents, beginning of year
 
1,881

 
1,379

 
1,197

Cash and cash equivalents, end of year
 
$
1,249

 
$
1,881

 
$
1,379

See accompanying notes to the condensed financial information.

Brighthouse Life Insurance Company
Schedule II
Condensed Financial Information (continued)
(Parent Company Only)
For the Years Ended December 31, 2017, 2016 and 2015
(In millions)
 
 
2017
 
2016
 
2015
Supplemental disclosures of cash flow information
 
 
 
 
 
 
Net cash paid (received) for:
 
 
 
 
 
 
Interest
 
$
12

 
$
64

 
$
65

Income tax
 
$
(421
)
 
$
428

 
$
(267
)
Non-cash transactions:
 
 
 
 
 
 
Capital contributions
 
$
—

 
$
43

 
$
141

Transfer of fixed maturity securities from former affiliates
 
$
—

 
$
3,565

 
$
—

Transfer of mortgage loans from former affiliates
 
$
—

 
$
395

 
$
—

Transfer of short-term investments from former affiliates
 
$
—

 
$
94

 
$
—

Transfer of fixed maturity securities to former affiliates
 
$
293

 
$
346

 
$
—

Reduction of other invested assets in connection with affiliated reinsurance transactions
 
$
—

 
$
676

 
$
—

Reduction of policyholder account balances in connection with reinsurance transactions
 
$
293

 
$
—

 
$
—

See accompanying notes to the condensed financial information.
Brighthouse Life Insurance Company
Schedule II
Notes to the Condensed Financial Information
(Parent Company Only)
1. Basis of Presentation
The condensed financial information of Brighthouse Life Insurance Company (the “Parent Company”) should be read in conjunction with the consolidated financial statements of Brighthouse Life Insurance Company and its subsidiaries and the notes thereto (the “Consolidated Financial Statements”). These condensed unconsolidated financial statements reflect the results of operations, financial position and cash flows for the Parent Company. Investments in subsidiaries are accounted for using the equity method of accounting.
The preparation of these condensed unconsolidated financial statements in conformity with GAAP requires management to adopt accounting policies and make certain estimates and assumptions. The most important of these estimates and assumptions relate to the fair value measurements, identifiable intangible assets and the provision for potential losses that may arise from litigation and regulatory proceedings and tax audits, which may affect the amounts reported in the condensed unconsolidated financial statements and accompanying notes. Actual results could differ from these estimates.
2. Investment in Subsidiaries
During the year ended December 31, 2017, Brighthouse Life Insurance Company paid cash capital contributions of $83 million to subsidiaries, of which $75 million was paid to BHNY.
During the year ended December 31, 2017, Brighthouse Life Insurance Company received $544 million of cash dividends from subsidiaries, of which $535 million was received from BRCD.