Long-term and Short-term Debt

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Long-term and Short-term Debt

7. Long-term and Short-term Debt

Intercompany Liquidity Facilities

BHF has established an intercompany liquidity facility with certain of its insurance and non-insurance subsidiaries to provide short-term liquidity within and across the combined group of companies. Under the facility, which is comprised of a series of revolving loan agreements among BHF and its participating subsidiaries, each company may lend to or borrow from each other, subject to certain maximum limits for a term not more than 364 days. For each insurance subsidiary, the borrowing and lending limit is 3% of the respective insurance subsidiary’s statutory admitted assets as of the previous year end. For BHF and each non-insurance subsidiary, the borrowing and lending limit is based on a formula tied to the statutory admitted assets of the respective insurance subsidiaries.

On March 30, 2020, BH Holdings issued a $100 million promissory note due June 30, 2020 to Brighthouse Life Insurance Company, which bears interest at a fixed rate of 2.4996% and is included in premiums, reinsurance and other receivables. Additionally, on March 30, 2020, Brighthouse Life Insurance Company of NY issued a $100 million promissory note due June 30, 2020 to BH Holdings, which bears interest at a fixed rate of 2.4996% and is included in long-term and short-term debt.