Brighthouse Financial BHF reported first-quarter 2024 adjusted net income of $4.25 per share, which beat the Zacks Consensus Estimate by 7.3%. The bottom line improved 48.6% year over year.
The results reflected higher premiums and net investment income as well as lower expenses.
Behind the Headlines
Total operating revenues of $2.1 billion increased 2.9% year over year, driven by higher premiums, net investment income and other income. The top line, however, missed the consensus mark by 3.5%.
Premiums of $202 million increased 2.5% year over year.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Brighthouse Financial, Inc. price-consensus-eps-surprise-chart | Brighthouse Financial, Inc. Quote
Adjusted net investment income was $1.3 billion in the quarter under review, up 15.5% year over year, primarily driven by alternative investment income, asset growth and higher interest rates. The investment income yield was 4.25%.
Total expenses were $688 million, down 64.5% year over year. Corporate expenses, pretax, were $207 million, down 1.4% year over year.
Quarterly Segmental Update
Annuities recorded an adjusted operating income of $313 million, up slightly year over year. Annuity sales increased 3% to $2.9 billion, attributable to strong Shield Level Annuity sales and higher fixed indexed annuity sales from the company’s recently launched SecureKey product.
Life’s adjusted operating loss was $36 million against earnings of $1 million in the year-ago reported quarter. Higher underwriting margin and higher net investment income were offset by unfavorable notable item related to a reinsurance premium rate increase retroactive to September 2019, which resulted from the conclusion of a reinsurance arbitration. Life insurance sales increased 26% to $29 million.
Adjusted operating loss at Run-off was $341 million against the year-ago income of $106 million, reflecting unfavorable notable items related to a reinsurance premium rate increase retroactive to September 2019, which resulted from the conclusion of a reinsurance arbitration.
Corporate & Other incurred an adjusted operating loss of $341 million, wider than the year-ago loss of $14 million, reflecting lower tax.
Financial Update
Cash and cash equivalents were $3.8 billion, down 6.4% year over year.
Shareholders’ equity of $4.2 billion at the end of first-quarter 2024 decreased 27.1% year over year.
Book value per share, excluding accumulated other comprehensive income, was $126.35 as of Mar 31, 2024, down 8.9% year over year.
Statutory combined total adjusted capital was $6 billion as of Mar 31, 2024, down 26.8% year over year.
As of Mar 31, 2024, the estimated combined risk-based capital ratio was 415%-435%.
Brighthouse bought back shares worth $62 million in the first quarter of 2024, with another $27 million through May 3, 2024.
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 Insurers
Reinsurance Group of America, Incorporated RGA reported first-quarter 2024 adjusted operating earnings of $6.02 per share, which beat the Zacks Consensus Estimate by 33.5%. The bottom line increased 16.7% from the year-ago quarter. RGA’s operating revenues of $6.5 billion improved 50% year over year, driven by higher net premiums, investment income, net of related expenses and other revenues.
Net premiums of $5.4 billion jumped 58.8% year over year. Investment income and net of related expenses increased 12.3% from the prior-year quarter to $961 million. The average investment yield declined 1 basis point to 4.70%, primarily due to higher new money rates, offset by lower variable investment income.
Lincoln National Corporation LNC reported first-quarter 2024 adjusted earnings of $1.37 per share, which beat the Zacks Consensus Estimate by 24.6%. However, the bottom line declined 9.9% year over year. Adjusted operating revenues of $4.6 billion declined 1.6% year over year in the quarter under review. The top line lagged the consensus mark by 1.3%.
Fee income declined 4% year over year to $1.3 billion, which missed the Zacks Consensus Estimate of $1.4 billion. Insurance premiums of $1.6 billion rose 1.4% year over year. The metric missed the consensus mark by 1%. Net investment income of $1.3 billion declined 8.2% year over year and missed the consensus mark of $1.4 billion. Meanwhile, other revenues climbed 39.2% year over year.
Voya Financial, Inc. VOYA reported first-quarter 2024 adjusted operating earnings of $1.88 per share, which beat the Zacks Consensus Estimate by 18.9%. The bottom line increased 11.2% year over year. Adjusted operating revenues amounted to $1.9 billion, up 8.9% year over year, driven by higher fee income, premiums and other revenues.
Net investment income declined 2.9% year over year to $529 million. Meanwhile, fee income of $513 million increased 10.5% year over year. Premiums totaled $800 million, up 16.8% from the year-ago quarter. Total benefits and expenses were $1.7 billion, up 4.1% from the year-ago quarter. As of Mar 31, 2024, VOYA’s assets under management, assets under administration and advisement totaled $848.6 billion.
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Lincoln National Corporation (LNC) : Free Stock Analysis Report
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