Brighthouse Financial Q2 adjusted EPS misses estimates as investment income falls

Brighthouse Financial

05/08/2026 21:54

Overview
U.S. annuities and life insurer's Q2 adjusted EPS and adjusted net income missed analyst expectations
Q2 net income rose sharply yr/yr, driven by market-related factors
Record Shield Level Annuities sales supported Q2 annuity sales

Outlook
Brighthouse Financial expects merger with Aquarian Capital to close in 2026, pending regulatory approvals
Company estimates combined RBC ratio between 430% and 450%, at upper end of target range
Brighthouse Financial holding company liquid assets total $0.9 bln

Result Drivers
SHIELD LEVEL ANNUITIES - Record sales of Shield Level Annuities drove sequential growth in annuity sales
NET INVESTMENT INCOME - Higher net investment income supported annuities segment adjusted earnings, though overall adjusted net investment income declined due to lower alternative investment income
UNDERWRITING MARGIN - Improved underwriting margin reduced losses in the Life and Run-off segments

Company press release: ID:nBw4KBl0va

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EPS
Miss
$4.45
$4.86 (6 Analysts)
Q2 EPS
 
$16.53
 
Q2 Adjusted Net Income
Miss
$258 mln
$279.33 mln (3 Analysts)
Q2 Net Income
 
$981 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the life & health insurance peer group is "buy."
Wall Street's median 12-month price target for Brighthouse Financial, Inc. is $67.00, about 6.9% above its August 4 closing price of $62.69
The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 3 three months ago

Reuters Recommended Reads
Aug 3 - Jackson Financial Q2 profit jumps on favorable hedging, annuity sales growth
Aug 4 - Equitable Holdings Q2 adjusted EPS beats estimates as AUM rises
Aug 4 - Corebridge Q2 adjusted operating income falls 24% yr/yr

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)