Segment Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Information

3. Segment Information

The Company is organized into three segments: Annuities; Life; and Run-off. In addition, the Company reports certain of its results of operations in Corporate & Other.

Annuities

The Annuities segment consists of a variety of variable, fixed, index-linked and income annuities designed to address contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer and income security.

Life

The Life segment consists of insurance products, including term, universal, whole and variable life products designed to address policyholders’ needs for financial security and protected wealth transfer, which may be on a tax-advantaged basis.

Run-off

The Run-off segment consists of products that are no longer actively sold and are separately managed, including ULSG, structured settlements, pension risk transfer contracts, certain company-owned life insurance policies and certain funding agreements.

Corporate & Other

Corporate & Other contains the excess capital not allocated to the segments and interest expense related to the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. Corporate & Other also includes long-term care business reinsured through 100% quota share reinsurance agreements and activities related to funding agreements associated with the Company’s institutional spread margin business.

In connection with the adoption of ASU 2018-12, the Company reclassified direct-to-consumer life insurance that is no longer sold from Corporate & Other to the Life segment. The segment information below reflects the direct-to-consumer life insurance in the Life segment for all periods presented.

Financial Measures and Segment Accounting Policies

Adjusted earnings is a financial measure used by management to evaluate performance and facilitate comparisons to industry results. Consistent with GAAP guidance for segment reporting, adjusted earnings is also used to measure segment performance. The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by the investor community by highlighting the results of operations and the underlying profitability drivers of the business.

Adjusted earnings, which may be positive or negative, focuses on the Company’s primary businesses by excluding the impact of market volatility, which could distort trends.

The following are significant items excluded from total revenues in calculating adjusted earnings:

•Net investment gains (losses); and

•Net derivative gains (losses), excluding 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”).

The following are significant items excluded from total expenses in calculating adjusted earnings:

•Change in MRBs; and

•Change in fair value of the crediting rate on experience-rated contracts (“Market Value Adjustments”).

The provision for income tax related to adjusted earnings is calculated using the statutory tax rate of 21%, net of impacts related to the dividends received deduction, tax credits and current period non-recurring items.

The Company’s adjusted earnings definition and presentation has been updated for all periods presented to reflect the adoption of ASU 2018-12.

The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for the adjustments to calculate adjusted earnings described above. In addition, segment accounting policies include the methods of capital allocation described below.

Segment investment and capitalization targets are based on statutory oriented risk principles and metrics. Segment invested assets backing liabilities are based on net statutory liabilities plus excess capital. For the variable annuity business, the excess capital held is based on the target statutory total asset requirement consistent with the Company’s variable annuity risk management strategy. For insurance businesses other than variable annuities, excess capital held is based on a percentage of required statutory risk-based capital (“RBC”). Assets in excess of those allocated to the segments, if any, are held in Corporate & Other. Segment net investment income reflects the performance of each segment’s respective invested assets.

Operating results by segment, as well as Corporate & Other, were as follows:

	Year Ended December 31, 2023
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	1,380	$	86	$	(99)	$	(91)	$	1,276
Provision for income tax expense (benefit)	257		17		(22)		(50)		202
Post-tax adjusted earnings	1,123		69		(77)		(41)		1,074
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		1		1
Adjusted earnings	$	1,123	$	69	$	(77)	$	(42)	1,073
Adjustments for:
Net investment gains (losses)									(242)
Net derivative gains (losses), excluding investment hedge adjustments of $105									(4,025)
Change in market risk benefits									1,497
Market value adjustments									(12)
Provision for income tax (expense) benefit									585
Net income (loss) attributable to Brighthouse Life Insurance Company									$	(1,124)
Interest revenue	$	2,558	$	391	$	1,141	$	575
Interest expense	$	—	$	—	$	—	$	70

	Year Ended December 31, 2022
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	1,291	$	(32)	$	108	$	(156)	$	1,211
Provision for income tax expense (benefit)	244		(8)		21		(154)		103
Post-tax adjusted earnings	1,047		(24)		87		(2)		1,108
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		1		1
Adjusted earnings	$	1,047	$	(24)	$	87	$	(3)	1,107
Adjustments for:
Net investment gains (losses)									(240)
Net derivative gains (losses), excluding investment hedge adjustments of $71									(656)
Change in market risk benefits									4,105
Market value adjustments									86
Provision for income tax (expense) benefit									(692)
Net income (loss) attributable to Brighthouse Life Insurance Company									$	3,710
Interest revenue	$	2,254	$	396	$	1,166	$	319
Interest expense	$	—	$	—	$	—	$	70

	Year Ended December 31, 2021
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	1,550	$	532	$	264	$	(293)	$	2,053
Provision for income tax expense (benefit)	296		112		58		(108)		358
Post-tax adjusted earnings	1,254		420		206		(185)		1,695
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		1		1
Adjusted earnings	$	1,254	$	420	$	206	$	(186)	1,694
Adjustments for:
Net investment gains (losses)									(63)
Net derivative gains (losses), excluding investment hedge adjustments of $21									(4,007)
Change in market risk benefits									4,142
Market value adjustments									17
Provision for income tax (expense) benefit									(21)
Net income (loss) attributable to Brighthouse Life Insurance Company									$	1,762
Interest revenue	$	2,207	$	643	$	1,910	$	76
Interest expense	$	—	$	—	$	—	$	67

Total revenues by segment, as well as Corporate & Other, were as follows:

	Years Ended December 31,
	2023		2022		2021
	(In millions)
Annuities	$	4,440	$	4,048	$	4,297
Life	1,013		988		1,382
Run-off	1,643		1,703		2,425
Corporate & Other	576		319		76
Adjustments	(4,267)		(896)		(4,070)
Total	$	3,405	$	6,162	$	4,110

Total assets by segment, as well as Corporate & Other, were as follows at:

	December 31,
	2023		2022
	(In millions)
Annuities	$	157,614	$	148,228
Life	20,363		17,214
Run-off	26,849		28,466
Corporate & Other	21,378		21,530
Total	$	226,204	$	215,438

Total premiums, universal life and investment-type product policy fees and other revenues by major product group were as follows:

	Years Ended December 31,
	2023		2022		2021
	(In millions)
Annuity products	$	1,890	$	1,796	$	2,093
Life insurance products	1,110		1,119		1,243
Other products	7		8		8
Total	$	3,007	$	2,923	$	3,344

Substantially all of the Company’s premiums, universal life and investment-type product policy fees and other revenues originated in the U.S.

Revenues derived from any individual customer did not exceed 10% of premiums, universal life and investment-type product policy fees and other revenues for the years ended December 31, 2023, 2022 and 2021.