Condensed Financial Information (Parent Company)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information (Parent Company)

Brighthouse Life Insurance Company

Schedule II

Condensed Financial Information

(Parent Company Only)

December 31, 2021 and 2020

(In millions, except share and per share data)

	2021		2020
Condensed Balance Sheets
Assets
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $66,348 and $59,333, respectively; allowance for credit losses of $10 and $2, respectively)	$	73,232	$	69,350
Equity securities, at estimated fair value	85		112
Mortgage loans (net of allowance for credit losses of $120 and $92, respectively)	18,977		15,079
Policy loans	869		884
Limited partnerships and limited liability companies	4,271		2,809
Short-term investments, principally at estimated fair value	649		1,670
Investment in subsidiaries	5,127		6,303
Other invested assets, principally at estimated fair value	2,855		3,360
Total investments	106,065		99,567
Cash and cash equivalents	3,309		3,384
Accrued investment income	588		573
Premiums, reinsurance and other receivables (net of allowance for credit losses of $10 and $10, respectively)	15,080		15,172
Receivable from subsidiaries	11,422		10,884
Deferred policy acquisition costs and value of business acquired	4,405		3,934
Deferred income tax receivable	1,385		1,103
Other assets	354		361
Separate account assets	101,076		99,021
Total assets	$	243,684	$	233,999
Liabilities and Stockholder's Equity
Liabilities
Future policy benefits	$	42,081	$	43,074
Policyholder account balances	62,187		51,272
Other policy-related balances	3,764		3,658
Payables for collateral under securities loaned and other transactions	5,922		5,101
Long-term debt	812		812
Current income tax payable	11		96
Other liabilities	11,735		12,865
Separate account liabilities	101,076		99,021
Total liabilities	227,588		215,899
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	17,773		18,323
Retained earnings (deficit)	(5,653)		(5,719)
Accumulated other comprehensive income (loss)	3,901		5,421
Total stockholder's equity	16,096		18,100
Total liabilities and stockholder's equity	$	243,684	$	233,999

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, 2021, 2020 and 2019

(In millions)

	2021		2020		2019
Condensed Statements of Operations
Revenues
Premiums	$	461	$	428	$	452
Universal life and investment-type product policy fees	2,592		2,440		2,559
Net investment income	4,340		3,111		3,086
Other revenues	391		398		341
Net investment gains (losses)	12		296		88
Net derivative gains (losses)	(1,806)		(1,594)		(2,928)
Total revenues	5,990		5,079		3,598
Expenses
Policyholder benefits and claims	2,131		3,087		2,623
Interest credited to policyholder account balances	1,122		912		869
Amortization of deferred policy acquisition costs and value of business acquired	66		626		337
Other expenses	2,733		2,102		1,920
Total expenses	6,052		6,727		5,749
Income (loss) before provision for income tax and equity in earnings (losses) of subsidiaries	(62)		(1,648)		(2,151)
Provision for income tax expense (benefit)	(78)		(410)		(534)
Income (loss) before equity in earnings (losses) of subsidiaries	16		(1,238)		(1,617)
Equity in earnings (losses) of subsidiaries	50		(68)		808
Net income (loss) attributable to Brighthouse Life Insurance Company	$	66	$	(1,306)	$	(809)
Comprehensive income (loss)	$	(1,454)	$	900	$	1,688

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, 2021, 2020 and 2019

(In millions)

	2021		2020		2019
Condensed Statements of Cash Flows
Net cash provided by (used in) operating activities	$	1,368	$	815	$	2,160
Cash flows from investing activities
Sales, maturities and repayments of:
Fixed maturity securities	11,647		7,591		12,009
Equity securities	107		66		57
Mortgage loans	2,814		1,869		1,434
Limited partnerships and limited liability companies	271		177		302
Purchases of:
Fixed maturity securities	(18,942)		(12,517)		(14,179)
Equity securities	(8)		(17)		(22)
Mortgage loans	(6,680)		(1,993)		(3,337)
Limited partnerships and limited liability companies	(837)		(581)		(463)
Cash received in connection with freestanding derivatives	3,489		6,035		1,933
Cash paid in connection with freestanding derivatives	(4,471)		(4,284)		(2,597)
Receipts on loans to affiliate	—		100		—
Issuances of loans to affiliate	—		(100)		—
Returns of capital and dividends from subsidiaries	24		16		54
Capital contributions to subsidiaries	—		—		(75)
Net change in policy loans	15		(9)		126
Net change in short-term investments	1,021		(223)		(1,418)
Net change in other invested assets	(33)		22		23
Net cash provided by (used in) investing activities	(11,583)		(3,848)		(6,153)
Cash flows from financing activities
Policyholder account balances:
Deposits	14,203		8,568		6,117
Withdrawals	(3,966)		(3,029)		(2,503)
Net change in payables for collateral under securities loaned and other transactions	821		812		(735)
Long-term and short-term debt issued	—		—		412
Dividends paid to parent	(550)		(1,250)		—
Financing element on certain derivative instruments and other derivative related transactions, net	(368)		(957)		(203)
Other, net	—		—		(7)
Net cash provided by (used in) financing activities	10,140		4,144		3,081
Change in cash, cash equivalents and restricted cash	(75)		1,111		(912)
Cash, cash equivalents and restricted cash, beginning of year	3,384		2,273		3,185
Cash, cash equivalents and restricted cash, end of year	$	3,309	$	3,384	$	2,273
Supplemental disclosures of cash flow information
Net cash paid (received) for:
Interest	$	65	$	65	$	28
Income tax	$	45	$	(32)	$	—
Non-cash transactions:
Transfer of fixed maturity securities from affiliate	$	240	$	417	$	—
Transfer of fixed maturity securities to affiliate	$	722	$	280	$	—

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 SubsidiariesDuring the year ended December 31, 2019, Brighthouse Life Insurance Company paid a cash capital contribution of $75 million to BHNY. See Note 10 for information regarding dividends paid by BHNY and BRCD to Brighthouse Life Insurance Company.