Brighthouse Financial, Inc.BHF
Brighthouse Financial, Inc. Segments Disclosure
2. Segment Information
The Company is organized into and provides its products and services through the following reportable segments: Annuities; Life; Run-off; and Corporate & Other. The Company’s chief operating decision maker (“CODM”) views and manages the business through these segments.
Annuities
The Annuities segment consists of a variety of variable, fixed, index-linked and income annuities designed to address contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer and income security.
Life
The Life segment consists of insurance products, including term, universal, whole and variable life products designed to address policyholders’ needs for financial security and protected wealth transfer, which may be on a tax-advantaged basis.
Run-off
The Run-off segment consists primarily of products that are no longer actively sold and are separately managed, including ULSG, structured settlements, pension risk transfer contracts, certain company-owned life insurance policies and certain funding agreements.
Corporate & Other
The Corporate & Other segment consists of activities related to funding agreements associated with the Company’s institutional spread margin business, excess capital not allocated to the other segments, interest expense related to the Company’s outstanding debt, and preferred stock dividends, as well as expenses associated with certain legal proceedings and income tax audit issues. The Corporate & Other segment also includes long-term care business reinsured through 100% quota share reinsurance agreements.
Financial Measure and Segment Accounting Policies
The Company’s CODM is its Chief Executive Officer (“CEO”). The CEO uses adjusted earnings to evaluate segment performance and facilitate comparisons to industry results. The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by the investor community by highlighting the results of operations and the underlying profitability drivers of the business.
Adjusted earnings, which may be positive or negative, focuses on the Company’s primary businesses by excluding the impact of market volatility, which could distort trends. Adjusted earnings was updated during the first quarter of 2025 in connection with the establishment of a trading portfolio comprised of certain fixed income securities (classified as “trading securities” under GAAP). The Company did not have trading securities prior to the first quarter of 2025.
The following items are excluded from total revenues in calculating adjusted earnings:
•Net investment gains (losses);
•Investment gains (losses) on trading securities measured at estimated fair value through net investment income; and
•Net derivative gains (losses), excluding earned income and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment (“Investment Hedge Adjustments”).
The following items are excluded from total expenses in calculating adjusted earnings:
•Change in MRBs; and
•Change in fair value of the crediting rate on experience-rated contracts and market value adjustments on institutional group annuities that are economically offset by gains (losses) on the related trading securities (“Market Value Adjustments”).
The provision for income tax related to adjusted earnings is calculated using the statutory tax rate of 21%, net of impacts related to the dividends received deduction, tax credits and current period non-recurring items.
The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for the adjustments to calculate adjusted earnings described above. In addition, segment accounting policies include the methods of capital allocation described below.
Segment investment and capitalization targets are based on statutory oriented risk principles and metrics. Segment invested assets backing liabilities are based on net statutory liabilities plus excess capital, with excess capital determined based on statutory risk-based capital (“RBC”) metrics. Assets in excess of those allocated to the Annuities, Life and Run-off segments, if any, are held in the Corporate & Other segment. Segment net investment income reflects the performance of each segment’s respective invested assets.
The tables below provide information about the Company’s segments, including significant segment expenses, and reconciliations to Net income (loss) available to common shareholders.
Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||
Annuities | Life | Run-off | Corporate & Other | Total | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Total revenues | $ | 3,638 | $ | 1,149 | $ | 1,274 | $ | 705 | $ | 6,766 | ||||||||||||||||||||||
Less: Revenues excluded from adjusted earnings (1) | (1,707) | (20) | (258) | 96 | ||||||||||||||||||||||||||||
Less: Segment expenses: | ||||||||||||||||||||||||||||||||
Policyholder benefits and claims | 456 | 724 | 625 | — | ||||||||||||||||||||||||||||
Interest credited to policyholder account balances, excluding market value adjustments | 1,421 | 115 | 235 | 409 | ||||||||||||||||||||||||||||
Amortization of DAC and VOBA | 522 | 87 | — | — | ||||||||||||||||||||||||||||
Interest expense on debt | — | — | — | 152 | ||||||||||||||||||||||||||||
Other expenses (2) | 1,397 | 198 | 128 | 83 | ||||||||||||||||||||||||||||
Less: Provision for income tax expense (benefit) | 295 | 4 | 108 | (28) | ||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | — | — | 5 | ||||||||||||||||||||||||||||
Less: Preferred stock dividends | — | — | — | 102 | ||||||||||||||||||||||||||||
Adjusted earnings (loss) | $ | 1,254 | $ | 41 | $ | 436 | $ | (114) | 1,617 | |||||||||||||||||||||||
Adjustments for: | ||||||||||||||||||||||||||||||||
Net investment gains (losses) | (97) | |||||||||||||||||||||||||||||||
| Investment gains (losses) on trading securities | — | |||||||||||||||||||||||||||||||
Net derivative gains (losses), excluding investment hedge adjustments of $0 | (1,792) | |||||||||||||||||||||||||||||||
Change in market risk benefits | 268 | |||||||||||||||||||||||||||||||
Market value adjustments | (8) | |||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 343 | |||||||||||||||||||||||||||||||
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders | $ | 331 | ||||||||||||||||||||||||||||||
Interest revenue | $ | 3,056 | $ | 432 | $ | 1,152 | $ | 604 | ||||||||||||||||||||||||
Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||
Annuities | Life | Run-off | Corporate & Other | Total | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Total revenues | $ | 1,932 | $ | 1,113 | $ | 996 | $ | 683 | $ | 4,724 | ||||||||||||||||||||||
Less: Revenues excluded from adjusted earnings (1) | (3,350) | (22) | (599) | (23) | ||||||||||||||||||||||||||||
Less: Segment expenses: | ||||||||||||||||||||||||||||||||
Policyholder benefits and claims | 479 | 710 | 1,105 | — | ||||||||||||||||||||||||||||
Interest credited to policyholder account balances, excluding market value adjustments | 1,351 | 105 | 243 | 450 | ||||||||||||||||||||||||||||
Amortization of DAC and VOBA | 505 | 94 | — | — | ||||||||||||||||||||||||||||
Interest expense on debt | — | — | — | 152 | ||||||||||||||||||||||||||||
Other expenses (2) | 1,399 | 188 | 166 | 41 | ||||||||||||||||||||||||||||
Less: Provision for income tax expense (benefit) | 297 | 5 | 16 | (14) | ||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | — | — | 5 | ||||||||||||||||||||||||||||
Less: Preferred stock dividends | — | — | — | 102 | ||||||||||||||||||||||||||||
Adjusted earnings (loss) | $ | 1,251 | $ | 33 | $ | 65 | $ | (30) | 1,319 | |||||||||||||||||||||||
Adjustments for: | ||||||||||||||||||||||||||||||||
Net investment gains (losses) | (295) | |||||||||||||||||||||||||||||||
Investment gains (losses) on trading securities | — | |||||||||||||||||||||||||||||||
Net derivative gains (losses), excluding investment hedge adjustments of $31 | (3,699) | |||||||||||||||||||||||||||||||
Change in market risk benefits | 2,673 | |||||||||||||||||||||||||||||||
Market value adjustments | 13 | |||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 275 | |||||||||||||||||||||||||||||||
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders | $ | 286 | ||||||||||||||||||||||||||||||
Interest revenue | $ | 2,859 | $ | 466 | $ | 1,234 | $ | 694 | ||||||||||||||||||||||||
Year Ended December 31, 2023 | ||||||||||||||||||||||||||||||||
Annuities | Life | Run-off | Corporate & Other | Total | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Total revenues | $ | 944 | $ | 1,199 | $ | 1,405 | $ | 569 | $ | 4,117 | ||||||||||||||||||||||
Less: Revenues excluded from adjusted earnings (1) | (3,934) | (30) | (238) | (56) | ||||||||||||||||||||||||||||
Less: Segment expenses: | ||||||||||||||||||||||||||||||||
Policyholder benefits and claims | 480 | 894 | 1,302 | — | ||||||||||||||||||||||||||||
Interest credited to policyholder account balances, excluding market value adjustments | 1,054 | 97 | 274 | 388 | ||||||||||||||||||||||||||||
Amortization of DAC and VOBA | 516 | 104 | — | — | ||||||||||||||||||||||||||||
Interest expense on debt | — | — | — | 153 | ||||||||||||||||||||||||||||
Other expenses (2) | 1,391 | 203 | 167 | 63 | ||||||||||||||||||||||||||||
Less: Provision for income tax expense (benefit) | 268 | (16) | (23) | (16) | ||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | — | — | 5 | ||||||||||||||||||||||||||||
Less: Preferred stock dividends | — | — | — | 102 | ||||||||||||||||||||||||||||
Adjusted earnings (loss) | $ | 1,169 | $ | (53) | $ | (77) | $ | (70) | 969 | |||||||||||||||||||||||
Adjustments for: | ||||||||||||||||||||||||||||||||
Net investment gains (losses) | (246) | |||||||||||||||||||||||||||||||
| Investment gains (losses) on trading securities | — | |||||||||||||||||||||||||||||||
Net derivative gains (losses), excluding investment hedge adjustments of $105 | (4,012) | |||||||||||||||||||||||||||||||
Change in market risk benefits | 1,507 | |||||||||||||||||||||||||||||||
Market value adjustments | (12) | |||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 580 | |||||||||||||||||||||||||||||||
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders | $ | (1,214) | ||||||||||||||||||||||||||||||
Interest revenue | $ | 2,568 | $ | 437 | $ | 1,141 | $ | 623 | ||||||||||||||||||||||||
_______________
(1)For each reportable segment, certain revenues are excluded from adjusted earnings (loss), including net investment gains (losses), investment gains (losses) on trading securities and net derivative gains (losses), excluding Investment Hedge Adjustments.
(2)Other expenses include corporate expense allocations directly attributable to each of the segments.
Total assets by segment were as follows at:
December 31, | ||||||||||||||
2025 | 2024 | |||||||||||||
(In millions) | ||||||||||||||
Annuities | $ | 166,867 | $ | 163,830 | ||||||||||
Life | 27,494 | 26,261 | ||||||||||||
Run-off | 25,455 | 24,873 | ||||||||||||
Corporate & Other | 21,984 | 23,573 | ||||||||||||
Total | $ | 241,800 | $ | 238,537 | ||||||||||
Total premiums, universal life and investment-type product policy fees and other revenues by major product group were as follows:
Years Ended December 31, | |||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||
(In millions) | |||||||||||||||||
Annuity products | $ | 2,291 | $ | 2,426 | $ | 2,319 | |||||||||||
Life insurance products | 1,102 | 1,018 | 1,280 | ||||||||||||||
Other products | 18 | 21 | 7 | ||||||||||||||
Total | $ | 3,411 | $ | 3,465 | $ | 3,606 | |||||||||||
Substantially all of the Company’s premiums, universal life and investment-type product policy fees and other revenues originated in the U.S.
Revenues derived from any individual customer did not exceed 10% of premiums, universal life and investment-type product policy fees and other revenues for the years ended December 31, 2025, 2024 and 2023.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Mar 16, 2018 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.