Saturday, 25 May 2019
BREAKING NEWS

Brighthouse Financial Announces Fourth Quarter 2018 Results – Business Wire

CHARLOTTE, N.C.–(BUSINESS WIRE)–Brighthouse Financial, Inc. (“Brighthouse Financial” or the “company”) (Nasdaq: BHF) announced today its financial results for the fourth quarter ended December 31, 2018.

Fourth Quarter 2018 Results

The company reported net income available to shareholders of $1,442 million in the fourth quarter of 2018, or $12.14 on a per diluted share basis, compared to net income available to shareholders of $668 million in the fourth quarter of 2017. The company ended the fourth quarter of 2018 with stockholders’ equity (“book value”) of $14.4 billion, or $122.67 on a per share basis, and book value, excluding accumulated other comprehensive income (“AOCI”) of $13.7 billion, or $116.58 on a per share basis.

For the fourth quarter of 2018, the company reported adjusted earnings* of $186 million, or $1.56 on a per diluted share basis.

The adjusted earnings for the quarter reflected $13 million of net unfavorable notable items, or $0.11 on a per diluted share basis, including:

  • A $26 million net favorable impact related to modeling improvements resulting from an actuarial system conversion; and
  • Establishment costs of $39 million related to planned technology and branding expenses associated with the company’s separation from its former parent company.

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* Information regarding the non-GAAP and other financial measures included in this news release and a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP measures is provided in the Non-GAAP and Other Financial Disclosures discussion below, as well as in the tables that accompany this news release and/or the Fourth Quarter 2018 Brighthouse Financial, Inc. Financial Supplement and/or the Fourth Quarter 2018 Brighthouse Financial, Inc. Earnings Call Presentation (which are available on the Brighthouse Financial Investor Relations web page athttp://investor.brighthousefinancial.com). Additional information regarding notable items can be found on the last page of this news release.

For the full year 2018, the company reported net income available to shareholders of $865 million, or $7.21 on a per diluted share basis. The company reported full year adjusted earnings of $892 million, or $7.44 on a per diluted share basis, and full year adjusted earnings, less notable items, of $998 million, or $8.33 on a per diluted share basis.

Corporate expenses in the fourth quarter of 2018 were $233 million pre-tax, down from $242 million pre-tax in the third quarter of 2018.

Annuity sales increased 27 percent quarter-over-quarter and 10 percent sequentially, driven by an increase in sales of Shield and fixed indexed annuities. The company’s fourth quarter 2018 sales results were its highest since becoming an independent company.

During the quarter, the company repurchased $63 million of its common stock under its stock repurchase program announced on August 6, 2018, resulting in a total of $105 million of its shares repurchased during 2018.

“We are pleased with our continued strong growth in annuity sales as well as the solid performance of our hedging program in the face of financial market headwinds during the quarter,” commented Eric Steigerwalt, president and chief executive officer, Brighthouse Financial. “We made significant progress executing our strategy during 2018, which we believe will enable us to achieve our longer-term financial targets and generate value for shareholders.”

 

Key Metrics (Unaudited, dollars in millions except share and per share amounts)

 
 
      As of or For the Three Months Ended
December 31, 2018     December 31, 2017
Total     Per share Total     Per share
Net income (loss) available to shareholders (1) $1,442 $12.14 $668 $5.57
Adjusted earnings (1) $186 $1.56 $992 $8.28
Weighted average common shares outstanding – diluted 118,685,082 N/A 119,773,106 N/A
 
Book value $14,418 $122.67 $14,515 $121.19
Book value, excluding AOCI $13,702 $116.58 $12,839 $107.19
Ending common shares outstanding 117,532,336 N/A 119,773,106 N/A
 
(1) Per share amounts are on a diluted basis and may not recalculate due to rounding.