Condensed Financial Information (Parent Company)

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information (Parent Company Only)

Brighthouse Life Insurance Company

Schedule II

Condensed Financial Information

(Parent Company Only)

December 31, 2023 and 2022

(In millions, except share and per share data)

	2023		2022
Condensed Balance Sheets
Assets
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $73,144 and $71,285, respectively; allowance for credit losses of $20 and $4, respectively)	$	68,317	$	64,250
Equity securities, at estimated fair value	48		55
Mortgage loans (net of allowance for credit losses of $129 and $114, respectively)	21,249		21,658
Policy loans	938		898
Limited partnerships and limited liability companies	4,384		4,191
Short-term investments, principally at estimated fair value	574		299
Investment in subsidiaries	2,347		2,604
Other invested assets, principally at estimated fair value	8,697		2,600
Total investments	106,554		96,555
Cash and cash equivalents	2,682		3,102
Accrued investment income	1,049		765
Premiums, reinsurance and other receivables (net of allowance for credit losses of $3 and $10, respectively)	18,869		17,591
Receivable from subsidiaries	15,830		11,091
Deferred policy acquisition costs and value of business acquired	4,047		4,184
Current income tax recoverable	23		27
Deferred income tax receivable	3,380		3,321
Market risk benefits assets	588		438
Other assets	279		299
Separate account assets	77,563		74,958
Total assets	$	230,864	$	212,331
Liabilities and Stockholder's Equity
Liabilities
Future policy benefits	$	32,066	$	31,693
Policyholder account balances	79,017		67,753
Market risk benefits liabilities	10,183		10,303
Other policy-related balances	3,902		4,296
Payables for collateral under securities loaned and other transactions	3,616		4,353
Long-term debt	812		812
Other liabilities	17,779		11,664
Separate account liabilities	77,563		74,958
Total liabilities	224,938		205,832
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	17,507		17,773
Retained earnings (deficit)	(6,542)		(5,418)
Accumulated other comprehensive income (loss)	(5,114)		(5,931)
Total stockholder's equity	5,926		6,499
Total liabilities and stockholder's equity	$	230,864	$	212,331

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, 2023, 2022 and 2021

(In millions)

	2023		2022		2021
Condensed Statements of Operations
Revenues
Premiums	$	599	$	423	$	423
Universal life and investment-type product policy fees	1,527		1,607		2,025
Net investment income	3,992		3,620		4,340
Other revenues	519		480		394
Net investment gains (losses)	(234)		(233)		12
Net derivative gains (losses)	(3,616)		1,800		(3,488)
Total revenues	2,787		7,697		3,706
Expenses
Policyholder benefits and claims (including remeasurement gains (losses) of ($137), $79, $47, respectively)	1,692		1,420		1,534
Interest credited to policyholder account balances	1,641		1,152		1,079
Amortization of deferred policy acquisition costs and value of business acquired	499		504		503
Change in market risk benefits	(1,494)		(4,107)		(4,153)
Other expenses	1,817		1,926		2,815
Total expenses	4,155		895		1,778
Income (loss) before provision for income tax and equity in earnings (losses) of subsidiaries	(1,368)		6,802		1,928
Provision for income tax expense (benefit)	(347)		1,292		340
Income (loss) before equity in earnings (losses) of subsidiaries	(1,021)		5,510		1,588
Equity in earnings (losses) of subsidiaries	(103)		(1,800)		174
Net income (loss) attributable to Brighthouse Life Insurance Company	$	(1,124)	$	3,710	$	1,762
Comprehensive income (loss)	$	(307)	$	(2,022)	$	77

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, 2023, 2022 and 2021

(In millions)

	2023		2022		2021
Condensed Statements of Cash Flows
Net cash provided by (used in) operating activities	$	238	$	(938)	$	1,285
Cash flows from investing activities
Sales, maturities and repayments of:
Fixed maturity securities	5,561		9,701		11,647
Equity securities	18		48		107
Mortgage loans	1,180		2,036		2,814
Limited partnerships and limited liability companies	197		249		271
Purchases of:
Fixed maturity securities	(7,587)		(14,364)		(18,942)
Equity securities	(3)		(14)		(8)
Mortgage loans	(775)		(4,864)		(6,680)
Limited partnerships and limited liability companies	(449)		(807)		(837)
Cash received in connection with freestanding derivatives	4,505		4,327		3,489
Cash paid in connection with freestanding derivatives	(5,207)		(3,833)		(4,471)
Receipts on loans to affiliate	125		—		—
Issuances of loans to affiliate	—		(125)		—
Returns of capital and dividends from subsidiaries	25		30		24
Capital contributions to subsidiaries	—		(100)		—
Net change in policy loans	(40)		(29)		15
Net change in short-term investments	(261)		351		1,021
Net change in other invested assets	(4,530)		(381)		(33)
Net cash provided by (used in) investing activities	(7,241)		(7,775)		(11,583)
Cash flows from financing activities
Policyholder account balances:
Deposits	24,917		29,938		14,210
Withdrawals	(17,305)		(19,680)		(3,890)
Net change in payables for collateral under securities loaned and other transactions	(737)		(1,569)		821
Dividends paid to parent	(266)		—		(550)
Financing element on certain derivative instruments and other derivative related transactions, net	(26)		(183)		(368)
Net cash provided by (used in) financing activities	6,583		8,506		10,223
Change in cash, cash equivalents and restricted cash	(420)		(207)		(75)
Cash, cash equivalents and restricted cash, beginning of year	3,102		3,309		3,384
Cash, cash equivalents and restricted cash, end of year	$	2,682	$	3,102	$	3,309
Supplemental disclosures of cash flow information
Net cash paid (received) for:
Interest	$	65	$	65	$	65
Income tax	$	(20)	$	(56)	$	45
Non-cash transactions:
Transfer of fixed maturity securities from affiliates	$	103	$	589	$	240
Transfer of limited partnerships and limited liability companies to affiliates	$	—	$	587	$	—
Transfer of fixed maturity securities to affiliates	$	234	$	296	$	722
Transfer of mortgage loans to affiliates	$	—	$	89	$	—

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.

Reclassifications

Certain amounts in the prior years’ condensed financial statements of the Parent Company have been reclassified to conform with the 2023 presentation. See Note 1 of the Notes to the Consolidated Financial Statements for information regarding the adoption of new guidance on long-duration contracts as of January 1, 2023, parts of which were retrospectively applied to prior periods presented in the Parent Company financial statements.

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, 2023, Brighthouse Life Insurance Company paid a non-cash capital contribution of $100 million to BHNY. During the year ended December 31, 2022, Brighthouse Life Insurance Company paid a cash capital contribution of $100 million to BHNY.