XML 125 R25.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Condensed Financial Information (Parent Company)
 12 Months Ended
Dec. 31, 2019
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information (Parent Company)
Brighthouse Life Insurance Company
Schedule II
Condensed Financial Information
(Parent Company Only)
December 31, 2019 and 2018
(In millions, except share and per share data)
 
 
2019
 
2018
Condensed Balance Sheets
 
 
 
 
Assets
 
 
 
 
Investments:
 
 
 
 
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $53,793 and $51,281, respectively)
 
$
59,754

 
$
52,926

Equity securities available-for-sale, at estimated fair value
 
124

 
121

Mortgage loans (net of valuation allowances of $61 and $55, respectively)
 
15,038

 
13,147

Policy loans
 
875

 
1,001

Limited partnerships and limited liability companies
 
2,379

 
2,290

Short-term investments, principally at estimated fair value
 
1,431

 
—

Investment in subsidiaries
 
5,980

 
5,098

Other invested assets, at estimated fair value
 
2,970

 
2,848

Total investments
 
88,551

 
77,431

Cash and cash equivalents
 
2,273

 
3,185

Accrued investment income
 
585

 
636

Premium, reinsurance and other receivable
 
13,727

 
13,046

Receivable from subsidiaries
 
9,505

 
8,001

Deferred policy acquisition costs and value of business acquired
 
4,340

 
4,572

Deferred income tax receivable
 
1,147

 
1,086

Other assets, principally at estimated fair value
 
424

 
461

Separate account assets
 
94,992

 
87,243

Total assets
 
$
215,544

 
$
195,661

Liabilities and Stockholder’s Equity
 
 
 
 
Liabilities
 
 
 
 
Future policy benefits
 
$
38,306

 
$
34,900

Policyholder account balances
 
43,119

 
37,935

Other policy-related balances
 
3,383

 
3,325

Payables for collateral under securities loaned and other transactions
 
4,289

 
5,024

Long-term debt
 
812

 
400

Current income tax payable
 
30

 
2

Other liabilities
 
12,149

 
10,056

Separate account liabilities
 
94,992

 
87,243

Total liabilities
 
197,080

 
178,885

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

 
19,073

Retained earnings (deficit)
 
(3,899
)
 
(3,090
)
Accumulated other comprehensive income (loss)
 
3,215

 
718

Total stockholder’s equity
 
18,464

 
16,776

Total liabilities and stockholder’s equity
 
$
215,544

 
$
195,661

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, 2019, 2018 and 2017
(In millions)
 
 
2019
 
2018
 
2017
Condensed Statements of Operations
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
Premiums
 
$
452

 
$
437

 
$
283

Universal life and investment-type product policy fees
 
2,559

 
2,738

 
2,774

Equity in earnings of subsidiaries
 
808

 
(277
)
 
1,221

Net investment income
 
3,086

 
2,885

 
2,613

Other revenues
 
341

 
398

 
402

Net investment gains (losses)
 
88

 
(165
)
 
(7
)
Net derivative gains (losses)
 
(2,928
)
 
1,335

 
(1,425
)
Total revenues
 
4,406

 
7,351

 
5,861

Expenses
 
 
 
 
 
 
Policyholder benefits and claims
 
2,623

 
2,388

 
2,862

Interest credited to policyholder account balances
 
869

 
881

 
909

Amortization of deferred policy acquisition costs and value of business acquired
 
337

 
952

 
310

Other expenses
 
1,920

 
1,925

 
1,848

Total expenses
 
5,749

 
6,146

 
5,929

Income (loss) before provision for income tax
 
(1,343
)
 
1,205

 
(68
)
Provision for income tax expense (benefit)
 
(534
)
 
238

 
815

Net income (loss) attributable to Brighthouse Life Insurance Company
 
$
(809
)
 
$
967

 
$
(883
)
Comprehensive income (loss)
 
$
1,688

 
$
(73
)
 
$
(294
)
See accompanying notes to the condensed financial information.
(Parent Company Only)
For the Years Ended December 31, 2019, 2018 and 2017

(In millions)
 
 
2019
 
2018
 
2017
Condensed Statements of Cash Flows
 
 
 
 
 
 
Net cash provided by (used in) operating activities
 
$
2,160

 
$
2,774

 
$
3,460

Cash flows from investing activities
 
 
 
 
 
 
Sales, maturities and repayments of:
 
 
 
 
 
 
Fixed maturity securities
 
12,009

 
14,909

 
14,667

Equity securities
 
57

 
19

 
119

Mortgage loans
 
1,434

 
840

 
704

Limited partnerships and limited liability companies
 
302

 
254

 
333

Purchases of:
 
 
 
 
 
 
Fixed maturity securities
 
(14,179
)
 
(14,697
)
 
(16,287
)
Equity securities
 
(22
)
 
(2
)
 
(2
)
Mortgage loans
 
(3,337
)
 
(3,896
)
 
(2,017
)
Limited partnerships and limited liability companies
 
(463
)
 
(358
)
 
(531
)
Cash received in connection with freestanding derivatives
 
1,933

 
1,795

 
1,858

Cash paid in connection with freestanding derivatives
 
(2,597
)
 
(2,879
)
 
(3,829
)
Sale of operating joint venture interest to a former affiliate
 
—

 
—

 
67

Returns of capital and dividends from subsidiaries
 
54

 
25

 
551

Capital contributions to subsidiaries
 
(75
)
 
—

 
(83
)
Net change in policy loans
 
126

 
105

 
(14
)
Net change in short-term investments
 
(1,418
)
 
269

 
711

Net change in other invested assets
 
23

 
44

 
(41
)
Net cash provided by (used in) investing activities
 
(6,153
)
 
(3,572
)
 
(3,794
)
Cash flows from financing activities
 
 
 
 
 


Policyholder account balances:
 
 
 
 
 
 
Deposits
 
6,117

 
5,064

 
3,845

Withdrawals
 
(2,503
)
 
(3,124
)
 
(2,360
)
Net change in payables for collateral under securities loaned and other transactions
 
(735
)
 
871

 
(3,136
)
Long-term debt issued
 
412

 
228

 
—

Capital contributions
 
—

 
—

 
1,300

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

 
—

 
202

Financing element on certain derivative instruments and other derivative related transactions, net
 
(203
)
 
(303
)
 
(149
)
Other, net
 
(7
)
 
(2
)
 
—

Net cash provided by (used in) financing activities
 
3,081

 
2,734

 
(298
)
Change in cash, cash equivalents and restricted cash
 
(912
)
 
1,936

 
(632
)
Cash, cash equivalents and restricted cash, beginning of year
 
3,185

 
1,249

 
1,881

Cash, cash equivalents and restricted cash, end of year
 
$
2,273

 
$
3,185

 
$
1,249

 
 
 
 
 
 
 
Supplemental disclosures of cash flow information
 
 
 
 
 
 
Net cash paid (received) for:
 
 
 
 
 
 
Interest
 
$
28

 
$
—

 
$
12

Income tax
 
$
—

 
$
(168
)
 
$
(421
)
Non-cash transactions:
 
 
 
 
 
 
Transfer of fixed maturity securities from affiliate
 
$
—

 
$
417

 
$
—

Transfer of fixed maturity securities to former affiliate
 
$
—

 
$
—

 
$
293

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, 2019, Brighthouse Life Insurance Company paid a cash capital contribution of $75 million to BHNY and received a cash dividend of $28 million from BHNY. On December 30, 2019, the Delaware Commissioner approved an extraordinary dividend of $600 million payable from BRCD to Brighthouse Life Insurance Company. Such dividend is included in receivable from subsidiaries at December 31, 2019. See Note 16 of the Notes to the Consolidated Financial Statements.
During the year ended December 31, 2017, Brighthouse Life Insurance Company paid cash capital contributions to subsidiaries of $83 million, of which $75 million was paid to BHNY, and received cash dividends from subsidiaries of $544 million, of which $535 million was received from BRCD.