Brighthouse (BHF) Q4 Earnings & Revenues Beat, Fall Y/Y
Brighthouse Financial Inc. BHF reported fourth-quarter 2022 adjusted net income of $3.51 per share, which beat the Zacks Consensus Estimate by 81.9%. The bottom line dropped 32.2% year over year.
The reported quarter witnessed lower revenues offset by lower expenses.
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 billion decreased 12.9% year over year due to lower premium, universal life and investment-type product policy fees and net investment income. The top line beat the consensus mark by 1%.
Premiums of $167 million decreased 0.6% year over year.
Adjusted net investment income was $1.1 billion in the quarter under review, down 10.3% year over year, due to lower alternative investment income, partially offset by asset growth. The investment income yield was 3.8%.
Total expenses decreased 9.6% year over year to $1.8 billion due to an increase in policyholder benefits and claims and interest credited to policyholder account balances and amortization of DAC and VOBA. Corporate expenses were $243 million, pretax, up 12% year over year.
Quarterly Segmental Update
Annuities reported an adjusted operating income of $286 million, down 26.7% year over year, due to lower fees, partially offset by lower expenses. Annuity sales increased 36.1% to $3.2 billion, driven by higher sales of fixed deferred annuities.
Life’s adjusted operating loss was $20 million against earnings of $67 million in the year-ago quarter on lower net investment income and higher DAC amortization. Life insurance sales decreased 37.1% to $22 million as a result of the recent macroeconomic headwinds.
Adjusted operating loss at Run-off was $121 million, wider than the year-ago loss of $45 million due to lower net investment income, partially offset by a higher underwriting margin and lower expenses.
Corporate & Other delivered adjusted operating income of $96 million against the prior-year loss of $89 million on lower expenses and higher net investment income.
Full-Year Highlights
Adjusted net income of $10.93 per share beat the Zacks Consensus Estimate of $9.55. The bottom line dropped 51% from the 2021 level.
Annuity sales were a record $11.5 billion, driven by strong sales of fixed deferred annuities. Life sales totaled $80 million.
Financial Update
Cash and cash equivalents were $4.1 billion, down 8% from 2021 end.
Shareholders’ equity of $5.5 billion at the end of 2022 decreased 65.9% from 2021 end.
Book value per share, excluding accumulated other comprehensive income (AOCI), was $142.04 as of Dec 31, 2022, up 7.7% year over year.
Statutory combined total adjusted capital was $8.1 billion on Dec 31, 2022, down 13.8% year over year.
As of Dec 31, 2022, the estimated combined RBC ratio was 440%.
Share Buyback Program
Brighthouse bought back shares worth $488 million in 2022, with another $27 million year through Feb 7, 2023.
Zacks Rank
Brighthouse currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Life Insurers
Reinsurance Group of America, Incorporated RGA reported fourth-quarter 2022 adjusted operating income of $2.99 per share, which missed the Zacks Consensus Estimate by 14.8%. RGA had incurred an operating loss of 56 cents per share in the prior-year quarter.
Operating revenues of $4.4 billion increased 2.2% year over year. The top line beat the Zacks Consensus Estimate by 1.2%. Net premiums of $3.4 billion rose 1.1% year over year.
Voya Financial VOYA reported fourth-quarter 2022 adjusted operating earnings of $2.18 per share, which surpassed the Zacks Consensus Estimate by 42.5%. The bottom line increased 14.7% year over year.
Adjusted operating revenues amounted to $1.5 billion, which decreased 4.4% year over year. Premiums totaled $610 million, up 12.1% from the year-ago quarter.
Sun Life Financial SLF reported fourth-quarter 2022 adjusted operating income of $1.25 per share, beating the Zacks Consensus Estimate by 7.8%. The bottom line increased 3.3% year over year. The underlying net income of $729 million (C$990 million) was up 10% year over year, which was driven by earnings growth in the United States and Canada.
Insurance sales increased 14.8% year over year to $1.3 billion (C$1.8 billion), driven by increased sales in Canada, Asia and the United States. Wealth sales were $33.6 billion (C$45.6 billion), down 17% year over year. The value of the new business decreased 5.3% to $345 million (C$468 million).
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Reinsurance Group of America, Incorporated (RGA) : Free Stock Analysis Report
Sun Life Financial Inc. (SLF) : Free Stock Analysis Report
Voya Financial, Inc. (VOYA) : Free Stock Analysis Report
Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report
