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Segment Information
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company is organized into three segments: Annuities; Life; and Run-off. In addition, the Company reports certain of its results of operations in Corporate & Other.
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 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
Corporate & Other contains the excess capital not allocated to the segments and interest expense related to the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. Corporate & Other also includes long-term care business reinsured through 100% quota share reinsurance agreements and activities related to funding agreements associated with the Company’s institutional spread margin business.
In connection with the adoption of ASU 2018-12, the Company reclassified direct-to-consumer life insurance that is no longer sold from Corporate & Other to the Life segment. The segment information below reflects the direct-to consumer life insurance in the Life segment for all periods presented.
Financial Measures and Segment Accounting Policies
Adjusted earnings is a financial measure used by management to evaluate performance and facilitate comparisons to industry results. Consistent with GAAP guidance for segment reporting, adjusted earnings is also used to measure segment performance. 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.
The following are significant items excluded from total revenues in calculating adjusted earnings:
•Net investment gains (losses); 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.
The following are significant items excluded from total expenses in calculating adjusted earnings:
•Change in MRBs; and
•Change in fair value of the crediting rate on experience-rated contracts.
The tax impact of the adjustments discussed above is calculated net of the statutory tax rate, which could differ from the Company’s effective tax rate.
The Company’s adjusted earnings definition and presentation has been updated for all periods presented to reflect the adoption of ASU 2018-12.
The segment accounting policies are the same as those used to prepare the Company’s interim condensed 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. For the variable annuity business, the excess capital held is based on the target statutory total asset requirement consistent with the Company’s variable annuity risk management strategy. For insurance businesses other than variable annuities, excess capital held is based on a percentage of required statutory risk-based capital. Assets in excess of those allocated to the segments, if any, are held in Corporate & Other. Segment net investment income reflects the performance of each segment’s respective invested assets.
Operating results by segment, as well as Corporate & Other, were as follows:
Three Months Ended March 31, 2023
AnnuitiesLifeRun-offCorporate & OtherTotal
(In millions)
Pre-tax adjusted earnings$387 $— $(134)$5 $258 
Provision for income tax expense (benefit)73 (1)(28)(9)35 
Post-tax adjusted earnings 314 1 (106)14 223 
Less: Net income (loss) attributable to noncontrolling interests— — — 2 2 
Less: Preferred stock dividends — — — 26 26 
Adjusted earnings$314 $1 $(106)$(14)195 
Adjustments for:
Net investment gains (losses)(96)
Net derivative gains (losses)(575)
Change in market risk benefits(194)
Other adjustments to net income (loss)(46)
Provision for income tax (expense) benefit191 
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders
$(525)
Interest revenue$594 $100 $254 $149 
Interest expense$— $— $— $38 
Three Months Ended March 31, 2022
AnnuitiesLifeRun-offCorporate & OtherTotal
(In millions)
Pre-tax adjusted earnings$438 $83 $31 $(38)$514 
Provision for income tax expense (benefit)84 17 7 (3)105 
Post-tax adjusted earnings 354 66 24 (35)409 
Less: Net income (loss) attributable to noncontrolling interests— — — 2 2 
Less: Preferred stock dividends — — — 27 27 
Adjusted earnings$354 $66 $24 $(64)380 
Adjustments for:
Net investment gains (losses)(68)
Net derivative gains (losses)(54)
Change in market risk benefits1,579 
Other adjustments to net income (loss)32 
Provision for income tax (expense) benefit(311)
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders
$1,558 
Interest revenue$555 $160 $401 $41 
Interest expense$— $— $— $38 
Total revenues by segment, as well as Corporate & Other, were as follows:
Three Months Ended
March 31,
20232022
(In millions)
Annuities$1,170 $1,202 
Life304 363 
Run-off380 535 
Corporate & Other139 41 
Adjustments(709)(128)
Total$1,284 $2,013 
Total assets by segment, as well as Corporate & Other, were as follows at:
March 31, 2023December 31, 2022
(In millions)
Annuities$155,541 $151,192 
Life22,621 22,057 
Run-off29,126 28,436 
Corporate & Other22,714 23,162 
Total$230,002 $224,847