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Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information
2. Segment Information
The Company is organized and provides its products and services through the following reportable segments: Annuities; Life; Run-off; and Corporate & Other. The Company’s chief operating decision maker (“CODM”) views and manages the business through these segments.
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 primarily 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
The Corporate & Other segment consists of activities related to funding agreements associated with the Company’s institutional spread margin business, excess capital not allocated to the other 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.
In connection with the adoption of ASU 2023-07, the Company’s presentation of segment information has been updated for all periods.
Financial Measure and Segment Accounting Policies
The Company’s CODM is its Chief Executive Officer (“CEO”). The CEO uses adjusted earnings to evaluate segment performance and facilitate comparisons to industry results. 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 items are 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 items are 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 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 Annuities, Life and Run-off segments, if any, are held in Corporate & Other. Segment net investment income reflects the performance of each segment’s respective invested assets.
The tables below provide information about the Company’s segments, including significant segment expenses, and reconciliations to Net income (loss) attributable to Brighthouse Life Insurance Company.
Year Ended December 31, 2024
AnnuitiesLifeRun-offCorporate & OtherTotal
(In millions)
Total revenues$1,500 $898 $995 $580 $3,973 
Less: Revenues excluded from adjusted earnings (1)(3,350)(20)(599)(47)
Less: Segment expenses:
Policyholder benefits and claims486 548 1,105 — 
Interest credited to policyholder account balances, excluding market value adjustments
1,346 85 243 449 
Amortization of DAC and VOBA
497 53 — — 
Interest expense on debt— — — 67 
Other expenses (2)
1,007 169 165 193 
Less: Provision for income tax expense (benefit)291 12 16 (55)
Less: Net income (loss) attributable to noncontrolling interests— — — 1 
Adjusted earnings (loss)
$1,223 $51 $65 $(28)1,311 
Adjustments for:
Net investment gains (losses)(298)
Net derivative gains (losses), excluding investment hedge adjustments of $30
(3,718)
Change in market risk benefits
2,669 
Market value adjustments
13 
Provision for income tax (expense) benefit279 
Net income (loss) attributable to Brighthouse Life Insurance Company$256 
Interest revenue$2,850 $420 $1,234 $626 
Year Ended December 31, 2023
AnnuitiesLifeRun-offCorporate & OtherTotal
(In millions)
Total revenues$508 $987 $1,404 $506 $3,405 
Less: Revenues excluded from adjusted earnings (1)(3,932)(26)(239)(70)
Less: Segment expenses:
Policyholder benefits and claims508 609 1,301 — 
Interest credited to policyholder account balances, excluding market value adjustments
1,048 79 274 388 
Amortization of DAC and VOBA
507 57 — — 
Interest expense on debt— — — 70 
Other expenses (2)
997 182 167 209 
Less: Provision for income tax expense (benefit)257 17 (22)(50)
Less: Net income (loss) attributable to noncontrolling interests— — — 1 
Adjusted earnings (loss)
$1,123 $69 $(77)$(42)1,073 
Adjustments for:
Net investment gains (losses)(242)
Net derivative gains (losses), excluding investment hedge adjustments of $105
(4,025)
Change in market risk benefits
1,497 
Market value adjustments(12)
Provision for income tax (expense) benefit585 
Net income (loss) attributable to Brighthouse Life Insurance Company$(1,124)
Interest revenue$2,558 $391 $1,141 $575 
Year Ended December 31, 2022
AnnuitiesLifeRun-offCorporate & OtherTotal
(In millions)
Total revenues$5,015 $959 $(198)$386 $6,162 
Less: Revenues excluded from adjusted earnings (1)967 (29)(1,901)67 
Less: Segment expenses:
Policyholder benefits and claims382 790 1,013 1 
Interest credited to policyholder account balances, excluding market value adjustments
889 57 290 163 
Amortization of DAC and VOBA
505 63 — — 
Interest expense on debt — — — 70 
Other expenses (2)
981 110 292 241 
Less: Provision for income tax expense (benefit)244 (8)21 (154)
Less: Net income (loss) attributable to noncontrolling interests— — — 1 
Adjusted earnings (loss)
$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 
_______________
(1)For each reportable segment, certain revenues are excluded from adjusted earnings (loss), including net investment gains (losses) and net derivative gains (losses), excluding investment hedge adjustments.
(2)Other expenses include corporate expense allocations directly attributable to each of the segments.
Total assets by segment were as follows at:
December 31,
20242023
(In millions)
Annuities$160,887 $157,614 
Life20,821 20,363 
Run-off24,894 26,849 
Corporate & Other21,989 21,378 
Total$228,591 $226,204 
Total premiums, universal life and investment-type product policy fees and other revenues by major product group were as follows:
Years Ended December 31,
202420232022
(In millions)
Annuity products$2,001 $1,890 $1,796 
Life insurance products848 1,110 1,119 
Other products10 7 8 
Total$2,859 $3,007 $2,923 
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, 2024, 2023 and 2022.