Insurer Brighthouse Financial posts Q3 profit rise, but misses estimates

Brighthouse Financial

07/11/2025 01:08

Overview

Quarterly adjusted EPS and adjusted net income rise YoY but missed analysts' expectations

Net income for Q3 rises significantly due to favorable actuarial adjustments

Brighthouse Financial announced, earlier on Thursday, co will be acquired by Aquarian Capital in $4.1 bln deal

Outlook

Brighthouse Financial expects to remain within RBC ratio target range of 400%-450% by year-end 2025

Company anticipates annual actuarial review will increase statutory reserves

Result Drivers

ANNUITY SALES - Record sales of Shield Level Annuities drove an 8% increase in annuity sales quarter-over-quarter

LIFE SALES - Life sales increased 27% quarter-over-quarter, driven by Brighthouse SmartCare

ACTUARIAL REVIEW IMPACT - Net income boosted by $316 mln favorable impact from annual actuarial review

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
Miss
$4.54
$5 (9 Analysts)
Q3 EPS
$7.89
Q3 Adjusted Net Income
Miss
$261 mln
$272 mln (6 Analysts)
Q3 Net Income
$453 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the multiline insurance & brokers peer group is "buy"

Wall Street's median 12-month price target for Brighthouse Financial Inc is $54.00, about 21.7% above its November 6 closing price of $65.70

The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 2 three months ago

Press Release: ID:nBw3Tk03Fa

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(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.)