\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Total<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Per share<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Total<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Per share<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNet income (loss) available to shareholders (1)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n$302<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$5.21<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$453<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$7.89<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjusted earnings (1)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n$527<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$9.12<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$970<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$16.87<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjusted earnings, less notable items (1)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n$213<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$3.68<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$261<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$4.54<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nWeighted average common shares outstanding – diluted (1)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n57,882,186<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \nN\/A<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n57,512,901<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \nN\/A<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nBook value<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$3,312<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$57.59<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$4,664<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$81.60<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nBook value, excluding AOCI<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$9,280<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$161.36<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$8,684<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$151.94<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nEnding common shares outstanding<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n57,512,254<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \nN\/A<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n57,153,571<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \nN\/A<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n (1)<\/sup> Per share amounts are on a diluted basis and may not recalculate due to rounding. See Non-GAAP and Other Financial Disclosures discussion in this news release.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n| \n Results by Segment (Unaudited, in millions)<\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n For the Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n ADJUSTED EARNINGS (LOSS) (1)<\/sup><\/b><\/p>\n<\/td>\n| \n \n\u00a0<\/p>\n<\/td>\n | \n September 30,
\n<\/b>
2026<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n June 30,
\n<\/b>
2026<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n September 30,
\n<\/b>
2025<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAnnuities<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$301<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$349<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$304<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nLife<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$91<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$(4)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$40<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nRun-off<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$166<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$(56)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$641<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCorporate & Other<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$(31)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$(31)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$(15)<\/p>\n<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n<\/tr>\n | \n| \n (1)<\/sup> The company uses the term “adjusted loss” throughout this news release to refer to negative adjusted earnings values.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n| \n Sales (Unaudited, in millions)<\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n For the Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n September 30,
\n<\/b>
2026<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n June 30,
\n<\/b>
2026<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n September 30,
\n<\/b>
2025<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAnnuities (1)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n$2,413<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$2,425<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$2,731<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nLife<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$36<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$39<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$38<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n (1)<\/sup> Annuities sales include sales of a fixed index annuity product, which represents 100% of gross sales on directly written business and the proportion of assumed gross sales under reinsurance agreements. Sales of this product were $40 million for the third quarter of 2026, $67 million for the second quarter of 2026 and $126 million for the third quarter of 2025.<\/p>\n<\/td>\n<\/tr>\n<\/table>\nAnnuities<\/i><\/p>\n \nAdjusted earnings in the Annuities segment were $301 million in the current quarter, compared with adjusted earnings of $304 million in the third quarter of 2025 and adjusted earnings of $349 million in the second quarter of 2026.<\/p>\n \nThe current quarter included a $1 million unfavorable notable item and the third quarter of 2025 included a $7 million unfavorable notable item, both related to the annual actuarial review completed in the respective quarters. There were no notable items in the second quarter of 2026.<\/p>\n \nOn a quarter-over-quarter basis, adjusted earnings, less notable items, reflect a lower income annuity underwriting margin and higher amortization of deferred acquisition costs, partially offset by higher net investment income. On a sequential basis, adjusted earnings, less notable items, reflect lower fees, a lower income annuity underwriting margin, and lower net investment income.<\/p>\n \nAs mentioned above, the company reported annuity sales of $2.4 billion, which were flat sequentially. Annuity sales decreased 12% quarter-over-quarter and 8% year-to-date, driven by lower fixed annuity sales, partially offset by strong sales of Shield Level Annuities, which were $2.1 billion in the quarter.<\/p>\n Life<\/i><\/p>\n \nThe Life segment had adjusted earnings of $91 million in the current quarter, compared with adjusted earnings of $40 million in the third quarter of 2025 and an adjusted loss of $4 million in the second quarter of 2026.<\/p>\n \nThe current quarter included a $67 million favorable notable item and the third quarter of 2025 included an $11 million favorable notable item, both related to the annual actuarial review completed in the respective quarters. There were no notable items in the second quarter of 2026.<\/p>\n \nOn a quarter-over-quarter basis, adjusted earnings, less notable items, reflect a lower underwriting margin and lower net investment income, partially offset by lower expenses. On a sequential basis, adjusted earnings, less notable items, reflect higher net investment income and lower expenses, partially offset by alower underwriting margin.<\/p>\n \nAs mentioned above, the company reported Life sales for the quarter of $36 million, representing an 8% decrease sequentially and a 5% decrease quarter-over-quarter. Life sales were flat on a year-to-date basis.<\/p>\n Run-off<\/i><\/p>\n \nThe Run-off segment had adjusted earnings of $166 million in the current quarter, compared with adjusted earnings of $641 million in the third quarter of 2025 and an adjusted loss of $56 million in the second quarter of 2026.<\/p>\n \nThe current quarter included a $248 million favorable notable item and the third quarter of 2025 included a $705 million favorable notable item, both related to the annual actuarial review completed in the respective quarters. There were no notable items in the second quarter of 2026.<\/p>\n \nOn a quarter-over-quarter basis, the adjusted loss, less notable items, reflects a lower underwriting margin and lower net investment income, partially offset by lower expenses. On a sequential basis, the adjusted loss, less notable items, reflects a lower underwriting margin, partially offset by higher net investment income.<\/p>\n Corporate & Other<\/i><\/p>\n \nThe Corporate & Other segment had an adjusted loss of $31 million in the current quarter, compared with an adjusted loss of $15 million in the third quarter of 2025 and an adjusted loss of $31 million in the second quarter of 2026.<\/p>\n \nThere were no notable items in the current quarter or the comparison quarters.<\/p>\n \nOn a quarter-over-quarter basis, the adjusted loss reflects lower net investment income and a lower tax benefit. On a sequential basis, the adjusted loss was flat.<\/p>\n \n\n| \n Net Investment Income and Adjusted Net Investment Income (Unaudited, in millions)<\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n For the Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n September 30,
\n<\/b>
2026<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n June 30,
\n<\/b>
2026<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n September 30,
\n<\/b>
2025<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNet investment income<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$1,257<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$1,241<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$1,334<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjusted net investment income<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$1,310<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$1,239<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$1,327<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Net Investment Income<\/i><\/p>\n \nNet investment income was $1,257 million and adjusted net investment income* was $1,310 million in the current quarter.<\/p>\n \nAdjusted net investment income decreased $17 million on a quarter-over-quarter basis, driven by lower average assets. Adjusted net investment income increased $71 million sequentially, driven by higher alternative investment income.<\/p>\n \nThe adjusted net investment income yield* was 4.41% during the quarter.<\/p>\n \n\n| \n Statutory Capital and Liquidity (Unaudited, in billions)<\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n As of<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n September 30,
\n
2026 (1)<\/sup><\/b><\/p>\n<\/td>\n\n \n\u00a0<\/p>\n<\/td>\n | \n June 30,
\n<\/b>
2026<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n September 30,
\n<\/b>
2025<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nStatutory combined total adjusted capital<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$4.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$4.9<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$5.4<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n (1)<\/sup> Reflects preliminary statutory results as of September 30, 2026.<\/p>\n<\/td>\n<\/tr>\n<\/table>\nCapitalization<\/i><\/p>\n \nAs of September 30, 2026:<\/i><\/p>\n\n- \nStatutory combined total adjusted capital(1) <\/sup>was $4.8 billion<\/p>\n<\/li>\n
- \nEstimated combined RBC ratio(1)<\/sup> was between 415% and 435%, which is within our target range of 400% to 450% in normal market conditions, and primarily reflects:<\/p>\n
\n- \nA benefit from a $600 million Brighthouse Reinsurance Company of Delaware extraordinary dividend paid to Brighthouse Life Insurance Company in the third quarter of 2026,<\/p>\n<\/li>\n
- \nNegative impacts from core results and non-trendable items, including basis risk (which can fluctuate quarter to quarter) and the effects from the significant rise in interest rates in the quarter, and<\/p>\n<\/li>\n
- \nA reserve increase from the statutory annual actuarial review conducted in the third quarter of 2026 and the full implementation of the NAIC\u2019s new Generator of Economic Scenarios (GOES) framework for our variable annuity and Shield products.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
- \nHolding company liquid assets were $1.0 billion<\/p>\n<\/li>\n<\/ul>\n
\n\n| \n \n_______________\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n (1)<\/sup> Reflects preliminary statutory results as of September 30, 2026.<\/p>\n<\/td>\n<\/tr>\n<\/table>\nPending Merger with Aquarian Capital<\/b><\/p>\n \nOn November 6, 2025, Aquarian Capital LLC (\u201cAquarian Capital\u201d), a diversified global holding company with a strategic portfolio of insurance and asset management businesses, and Brighthouse Financial, announced that they had entered into a definitive merger agreement under which an affiliate of Aquarian Capital will acquire Brighthouse Financial for $70.00 per share in an all-cash transaction valued at approximately $4.1 billion.<\/p>\n \nThe completion of the merger remains subject to the receipt of insurance regulatory approvals in Delaware, New York and Massachusetts. All other conditions to the closing of the merger have been satisfied or waived (other than those conditions that, by their terms, are to be satisfied at the closing and are capable of being satisfied at the closing). Pursuant to the terms of the merger agreement, on September 6, 2026, the merger agreement was automatically extended to December 6, 2026 (the \u201cOutside Date\u201d). The company or Aquarian Capital may terminate the merger agreement if the closing has not occurred by the Outside Date.<\/p>\n \nThe regulatory review process is ongoing, and the necessary regulatory approvals are not expected to be received in time to complete the merger by the Outside Date. Accordingly, the company and Aquarian Capital currently are in discussions regarding amending the merger agreement to extend the Outside Date and remain committed to the merger, although there can be no assurance that the company and Aquarian Capital will ultimately agree on an extension or that the merger will be completed by any such new outside date (or at all).<\/p>\n About Brighthouse Financial, Inc.<\/b><\/p>\n \nBrighthouse Financial, Inc. (Brighthouse Financial) (Nasdaq: BHF) is on a mission to help people achieve financial security. As one of the largest providers of annuities and life insurance in the U.S.,(1)<\/sup> we specialize in products designed to help people protect what they’ve earned and ensure it lasts. Learn more at brighthousefinancial.com<\/a>.<\/p>\n\n\n| \n (1)<\/sup> Ranked by 2025 admitted assets. Best’s Review\u00ae<\/sup>: Top 200 U.S. Life\/Health Insurers. AM Best, 2026.<\/p>\n<\/td>\n<\/tr>\n<\/table>\nNote Regarding Forward-Looking Statements<\/b><\/p>\n \nThis news release and other oral or written statements that Brighthouse Financial makes from time to time may contain information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve substantial risks and uncertainties. Brighthouse Financial has tried, wherever possible, to identify such statements using words such as \u201canticipate,\u201d \u201cestimate,\u201d \u201cexpect,\u201d \u201cproject,\u201d \u201cmay,\u201d \u201cwill,\u201d \u201ccould,\u201d \u201cintend,\u201d \u201cgoal,\u201d \u201ctarget,\u201d \u201cguidance,\u201d \u201cforecast,\u201d \u201cpreliminary,\u201d \u201cobjective,\u201d \u201ccontinue,\u201d \u201caim,\u201d \u201cplan,\u201d \u201cbelieve\u201d and other words and terms of similar meaning, or that are tied to future periods, in connection with a discussion of future operating or financial performance. In particular, these include, without limitation, statements relating to the completion of the pending merger with an affiliate of Aquarian Capital, future actions, prospective services or products, financial projections, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, as well as trends in operating and financial results.<\/p>\n \nAny or all forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining the actual future results of Brighthouse Financial. These statements are based on current expectations and the current economic environment and involve a number of risks and uncertainties that are difficult to predict. These statements are not guarantees of future performance. Actual results could differ materially from those expressed or implied in the forward-looking statements due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others: Brighthouse Financial\u2019s ability to complete the merger in the timeframe or manner currently anticipated or at all, including due to a failure to obtain the regulatory approvals required for the closing of the merger or the occurrence of any event, change or other circumstance that could give rise to the right of one or both of the parties to terminate the merger agreement; the effect of the pendency of the merger on Brighthouse Financial\u2019s ongoing business and operations, including disruption to Brighthouse Financial\u2019s business relationships, the diversion of management\u2019s attention from ongoing business operations and opportunities, or the outcome of any legal proceedings that may be instituted against Aquarian Capital or Brighthouse Financial following announcement of the merger; restrictions on the conduct of Brighthouse Financial\u2019s business prior to the closing of the merger and on Brighthouse Financial\u2019s ability to pursue alternatives to the merger; the possibility that the merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; differences between actual experience and actuarial assumptions and the effectiveness of Brighthouse Financial’s actuarial models; higher risk management costs and exposure to increased market risk due to guarantees within certain of Brighthouse Financial’s products; the effectiveness of Brighthouse Financial’s risk management strategy and the impacts of such strategy on volatility in Brighthouse Financial’s profitability measures and the negative effects on Brighthouse Financial’s statutory capital; material differences between actual outcomes and the sensitivities calculated under certain scenarios that Brighthouse Financial may utilize in connection with its risk management strategies; the impact of interest rates on Brighthouse Financial’s future universal life with secondary guarantees policyholder obligations and net income volatility; the potential material adverse effect of changes in accounting standards, practices or policies applicable to Brighthouse Financial; loss of business and other negative impacts resulting from a downgrade or a potential downgrade in Brighthouse Financial’s financial strength or credit ratings; the availability of reinsurance and the ability of the counterparties to Brighthouse Financial’s reinsurance or indemnification arrangements to perform their obligations thereunder; heightened competition, including with respect to service, product features, product mix, scale, price, actual or perceived financial strength, claims-paying ratings, credit ratings, e-business capabilities and name recognition; Brighthouse Financial’s ability to market and distribute its products through distribution channels and maintain relationships with key distribution partners; any failure of third parties to provide services Brighthouse Financial needs, any failure of the practices and procedures of such third parties and any inability to obtain information or assistance it needs from third parties; the ability of Brighthouse Financial’s subsidiaries to pay dividends to it, and its ability to pay dividends to its shareholders and repurchase its common stock; the risks associated with climate change; the adverse impact of public health crises, extreme mortality events or similar occurrences on Brighthouse Financial’s business and the economy in general; the impact of adverse capital and credit market conditions, including with respect to Brighthouse Financial’s ability to meet liquidity needs and access capital; the impact of economic conditions in the capital markets and the U.S. and global economy, as well as geopolitical events, tariffs imposed or threatened by the U.S. or foreign governments, military actions or catastrophic events, on Brighthouse Financial’s profitability measures as well as its investment portfolio, including on realized and unrealized losses and impairments, net investment spread and net investment income; the financial risks that Brighthouse Financial’s investment portfolio is subject to, including credit risk, interest rate risk, inflation risk, market valuation risk, liquidity risk, real estate risk, derivatives risk, and other factors outside Brighthouse Financial’s control; the impact of changes in regulation and in supervisory and enforcement policies or interpretations thereof on Brighthouse Financial’s insurance business or other operations; the potential material negative tax impact of potential future tax legislation that could make some of Brighthouse Financial’s products less attractive to consumers or increase its tax liability; the effectiveness of Brighthouse Financial’s policies, procedures and processes in managing risk; the loss or disclosure of confidential information, damage to Brighthouse Financial’s reputation and impairment of its ability to conduct business effectively as a result of any failure in cyber- or other information security systems; whether all or any portion of the tax consequences of Brighthouse Financial’s separation from MetLife, Inc. are not as expected, leading to material additional taxes or material adverse consequences to tax attributes that impact Brighthouse Financial; and other factors described from time to time in documents that Brighthouse Financial files with the U.S. Securities and Exchange Commission (the “SEC”).<\/p>\n \nFor the reasons described above, Brighthouse Financial cautions you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements included and the risks, uncertainties and other factors identified in Brighthouse Financial\u2019s most recent Annual Report on Form 10-K, particularly in the sections entitled \u201cRisk Factors\u201d and \u201cQuantitative and Qualitative Disclosures About Market Risk,\u201d as well as in its other subsequent filings with the SEC. Further, any forward-looking statement speaks only as of the date on which it is made, and Brighthouse Financial undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.<\/p>\n \nThe information contained on or connected to any websites referenced in this news release is not incorporated by reference into this news release.<\/p>\n Non-GAAP and Other Financial Disclosures<\/b><\/p>\n \nOur definitions of non-GAAP and other financial measures may differ from those used by other companies.<\/p>\n Non-GAAP Financial Disclosures<\/span><\/i><\/p>\n\nWe present certain measures of our performance that are not calculated in accordance with accounting principles generally accepted in the United States of America, also known as “GAAP.” We believe that these non-GAAP financial measures enhance the understanding of our performance by the investor community by highlighting the results of operations and the underlying profitability drivers of our business.<\/p>\n \nThe following non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP:<\/p>\n \n\n| \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Non-GAAP financial measures:<\/span><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n Most directly comparable GAAP financial measures:<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n \nadjusted earnings<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \nnet income (loss) available to shareholders (1)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nadjusted earnings, less notable items<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \nnet income (loss) available to shareholders (1)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nadjusted revenues<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \nrevenues<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nadjusted expenses<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \nexpenses<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nadjusted earnings per common share<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \nearnings per common share, diluted (1)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nadjusted earnings per common share, less notable items<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \nearnings per common share, diluted (1)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nadjusted return on common equity<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \nreturn on common equity (2)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nadjusted net investment income<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \nnet investment income<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nadjusted net investment income yield<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \nnet investment income yield<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n__________________<\/p>\n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n (1)<\/sup> Brighthouse uses net income (loss) available to shareholders to refer to net income (loss) available to Brighthouse Financial, Inc.’s common shareholders, and earnings per common share, diluted to refer to net income (loss) available to shareholders per common share.<\/p>\n<\/td>\n<\/tr>\n\n| \n (2)<\/sup> Brighthouse uses return on common equity to refer to return on Brighthouse Financial, Inc.’s common stockholders’ equity.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n\nReconciliations to the most directly comparable historical GAAP measures are included for those measures which are presented herein. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are not accessible on a forward-looking basis because we believe it is not possible without unreasonable efforts to provide other than a range of net investment gains and losses and net derivative gains and losses, which can fluctuate significantly within or outside the range and from period to period and may have a material impact on net income (loss) available to shareholders.<\/p>\n Adjusted Earnings, Adjusted Revenues and Adjusted Expenses<\/i><\/p>\n \nAdjusted earnings is a financial measure used by management to evaluate performance and facilitate comparisons to industry results. This financial measure, which may be positive or negative, focuses on our primary businesses by excluding the impact of market volatility, which could distort trends.<\/p>\n \nAdjusted earnings reflect adjusted revenues less (i) adjusted expenses, (ii) provision for income tax expense (benefit), (iii) net income (loss) attributable to noncontrolling interests and (iv) preferred stock dividends. Provided below are the adjustments to GAAP revenues and GAAP expenses used to calculate adjusted revenues and adjusted expenses, respectively.<\/p>\n \nThe following items are excluded from total revenues in calculating the adjusted revenues component of adjusted earnings:<\/p>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |