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Segment Information
 3 Months Ended
Mar. 31, 2025
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 universal life with secondary guarantees (“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.
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. Adjusted earnings was updated during the first quarter of 2025 in connection with the establishment of a trading portfolio comprised of certain fixed income securities. The Company did not have trading securities prior to the first quarter of 2025.
The following items are excluded from total revenues in calculating adjusted earnings:
•Net investment gains (losses);
•Investment gains (losses) on trading securities measured at estimated fair value through net investment income; 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 market risk benefits (“MRB”); and
•Change in fair value of the crediting rate on experience-rated contracts and market value adjustments on institutional group annuities that are economically offset by gains (losses) on the related trading securities (“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 interim condensed 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. 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.
Three Months Ended March 31, 2025
AnnuitiesLifeRun-off
Corporate & Other
Total
(In millions)
Total revenues
$1,489 $225 $368 $150 $2,232 
Less: Revenues excluded from adjusted earnings (1)
247 (10)1 5 
Less: Segment expenses:
Policyholder benefits and claims111 156 352 — 
Interest credited to policyholder account balances, excluding market value adjustments357 21 60 106 
Amortization of DAC and VOBA124 12 — — 
Interest expense on debt— — — 17 
Other expenses (2)271 40 36 46 
Less: Provision for income tax expense (benefit)
72 1 (18)(13)
Less: Net income (loss) attributable to noncontrolling interests— — — — 
Adjusted earnings (loss)$307 $5 $(63)$(11)238 
Adjustments for:
Net investment gains (losses)(81)
Investment gains (losses) on trading securities
6 
Net derivative gains (losses), excluding investment hedge adjustments of $0
318 
Change in market risk benefits(896)
Market value adjustments(10)
Provision for income tax (expense) benefit138 
Net income (loss) attributable to Brighthouse Life Insurance Company$(287)
Interest revenue$751 $94 $272 $146 
Three Months Ended March 31, 2024
AnnuitiesLifeRun-off
Corporate & Other
Total
(In millions)
Total revenues
$(572)$154 $146 $148 $(124)
Less: Revenues excluded from adjusted earnings (1)(1,768)(9)(210)(2)
Less: Segment expenses:
Policyholder benefits and claims147 164 673 — 
Interest credited to policyholder account balances, excluding market value adjustments302 21 69 109 
Amortization of DAC and VOBA124 14 — — 
Interest expense on debt— — — 17 
Other expenses (2)248 59 46 59 
Less: Provision for income tax expense (benefit)71 (21)(91)(13)
Less: Net income (loss) attributable to noncontrolling interests— — — — 
Adjusted earnings (loss)$304 $(74)$(341)$(22)(133)
Adjustments for:
Net investment gains (losses)(43)
Investment gains (losses) on trading securities
— 
Net derivative gains (losses), excluding investment hedge adjustments of $13
(1,946)
Change in market risk benefits1,438 
Market value adjustments5 
Provision for income tax (expense) benefit114 
Net income (loss) attributable to Brighthouse Life Insurance Company$(565)
Interest revenue$674 $96 $316 $150 
_______________
(1)For each reportable segment, certain revenues are excluded from adjusted earnings (loss), including net investment gains (losses), investment gains (losses) on trading securities 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:
March 31, 2025December 31, 2024
(In millions)
Annuities$157,924 $160,887 
Life20,889 20,821 
Run-off25,055 24,894 
Corporate & Other21,353 21,989 
Total$225,221 $228,591 
Total premiums, universal life and investment-type product policy fees and other revenues by major product group were as follows:
Three Months Ended
March 31,
20252024
(In millions)
Annuity products$491 $522 
Life insurance products233 105 
Other products2 2 
Total$726 $629 
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 three months ended March 31, 2025 and 2024.