Brighthouse (BHF) Q1 Earnings Beat, Revenues Decrease Y/Y
Brighthouse Financial Inc.'s BHF first-quarter 2022 adjusted net income of $4.07 per share surpassed the Zacks Consensus Estimate by 15.3%. The bottom line decreased 16.2% year over year.
The reported quarter witnessed higher expenses, lower adjusted net investment income and lower premiums.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Brighthouse Financial, Inc. price-consensus-eps-surprise-chart | Brighthouse Financial, Inc. Quote
Behind the Headlines
Total operating revenues of $2.3 billion decreased 5.5% year over year due to lower universal life and investment-type product policy fees, net investment income as well as premiums.
Premiums of $166 million decreased 9.8% year over year.
Adjusted net investment income was $1.1 billion in the quarter under review, down 2.9% year over year, due to lower alternative investment income, partially offset by asset growth. The investment income yield was 4.36%.
Total expenses increased 13.3% year over year to $1.9 billion due to an increase in policyholder benefits and claims and amortization of DAC and VOBA. Corporate expenses were $208 million.
Quarterly Segmental Update
Annuities reported an adjusted operating income of $311 million, down 7.4% year over year, reflecting higher reserves, lower fees and higher deferred acquisition costs ("DAC") amortization, partially offset by lower expenses. Annuity sales decreased 3% to $2.1 billion.
Life generated an adjusted operating income of $26 million, down 38.1% year over year due to lower net investment income and underwriting margin, partially offset by lower expenses. Life insurance sales decreased 13% to $20 million.
Adjusted operating earnings of Run-off were $16 million, down 78.9% year over year, reflecting lower net investment income and a lower underwriting margin.
Adjusted operating loss at Corporate & Other was $59 million, which was narrower than the prior-year loss of $69 million due to higher net investment income and lower expenses, partially offset by a lower tax benefit.
Financial Update
Cash and cash equivalents were $4.1 billion, down 8.3% from 2021 end.
Shareholders’ equity of $12.8 billion at the end of the quarter decreased 20.6% from 2021 end.
Book value per share, excluding accumulated other comprehensive income (AOCI), was $141.85 as of Mar 31, 2022, up 20% year over year.
As of Mar 31, 2022, the estimated combined RBC ratio was between 450% and 470%.
Share Buyback Program
Brighthouse bought back shares worth $127 million in the quarter under review with another $53 million through May 5.
Zacks Rank
Brighthouse currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Life Insurers
Voya Financial, Inc. VOYA reported first-quarter 2022 adjusted operating earnings of $1.47 per share, which surpassed the Zacks Consensus Estimate by 8.1%. The bottom line increased 42.7% year over year. Total revenues amounted to $1.5 billion against ($2 billion) in the year-ago quarter.
Voya Financial's net investment income declined 11.7% year over year to $630 million. Meanwhile, fee income of $433 million decreased 5.4% year over year. Premiums totaled $613 million versus ($5 billion) in the year-ago quarter. Total expenses were $1.4 billion versus a benefit of $3 million in the year-ago quarter.
Lincoln National Corporation LNC reported first-quarter 2022 adjusted earnings of $1.66 per share, which missed the Zacks Consensus Estimate of $1.97. Also, the bottom line declined from the prior-year figure of $1.82 per share.
Lincoln National's adjusted operating revenues decreased to $4,718 million for the first quarter from $4,762 million a year ago. Also, it missed the consensus mark of $4,768 million.
Reinsurance Group of America, Incorporated RGA reported first-quarter 2022 adjusted operating earnings of 47 cents per share against the Zacks Consensus Estimate of a loss of 61 cents. In the year-ago quarter, RGA had reported a loss of $1.24 per share. Net premiums of $3.1 billion rose 8.3% year over year.
Investment income, net of related expenses, decreased 0.2% from the prior-year quarter to $810 million. The average investment yield was down 38 basis points to 5.29%. Total benefits and expenses at Reinsurance Group increased 1.4% year over year to $3.9 billion.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lincoln National Corporation (LNC) : Free Stock Analysis Report
Reinsurance Group of America, Incorporated (RGA) : Free Stock Analysis Report
Voya Financial, Inc. (VOYA) : Free Stock Analysis Report
Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
