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Brighthouse Financial Expands Portfolio With Two New Products

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Brighthouse Financial Inc. BHF unveiled two products, namely the Brighthouse Fixed Rate Annuity and Brighthouse Fixed Rate Annuity MVA via Brighthouse Life Insurance Company. Shares of the company inched up 0.5% in the last trading session, given the company’s initiative to launch the fixed annuities for strengthening its product offering.

This introduction of a couple of products is in tandem with the company’s intention of catering to financial advisors and clients with customized annuity and life insurance products. Both products are single premium deferred fixed annuities ensuring customers a guaranteed rate of interest for the initial guarantee period that might vary from three, five to seven years.

The Brighthouse Fixed Rate Annuity MVA provides higher interest rates during the initial guarantee period. While Brighthouse Fixed Rate Annuity offers optional return of premium guarantee through the Principal Guarantee Rider. These products should help the company tap the growing fixed annuity market.

Brighthouse Financial is poised to benefit from growth opportunities offered by the largest individual insurance market in the world. With improved interest rates and an accelerated pace in interest rate increase, demand for fixed annuities rises as noted by Myles Lambert, chief distribution and marketing officer, Brighthouse Financial.

Earlier in the first quarter of 2018, the company unveiled FlexChoice Access VA rider. A compelling annuity portfolio has helped the company deliver 42% year-over-year increase in annuity sales during the second quarter. The company boasts a large block of life insurance with $421 billion of face value in force. It also retains its focus on ramping up new sales of life insurance, envisioning itself as a premier industry player.

Shares of Brighthouse Financial have rallied 15.9% quarter to date, outperforming the industry’s 0.8% increase. An expansive and a compelling suite of life and annuity products plus a strong market presence should continue to drive shares. The company carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks from the life insurance industry are Athene Holding Ltd. ATH, Primerica, Inc. PRI and American Equity Investment Life Holding Company AEL.

Athene issues, reinsures and acquires retirement savings products in the United States. The company’s average four-quarter positive surprise is 15.03%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Primerica distributes financial products to middle income households in the United States and Canada. The company’s average four-quarter earnings surprise is 5.89%. The stocks has a Zacks Rank of 1.

American Equity Investment provides life insurance products and services in the United States. The company’s average four-quarter beat is 22.24%. The stocks carries a Zacks Rank #2 (Buy).

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