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Segment Information | 3 Months Ended
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Mar. 31, 2024
Segment Reporting [Abstract] |
Segment Information | 2. 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 primarily of products that are no longer actively sold and are separately managed, including universal life with secondary guarantees (“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. 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 Company uses the term “adjusted loss” throughout this report to refer to negative adjusted earnings values. 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 (“Investment Hedge Adjustments”). The following are significant items excluded from total expenses in calculating adjusted earnings: •Change in market risk benefits (“MRB”); and •Change in fair value of the crediting rate on experience-rated contracts (“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 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, 2024
|  | Annuities |  | Life |  | Run-off |  | Corporate & Other |  | Total
|  | (In millions)
Pre-tax adjusted earnings (loss) |  | $ | 385 |  |  | $ | (46) |  |  | $ | (432) |  |  | $ | 11 |  |  | $ | (82) |
Provision for income tax expense (benefit) |  | 72 |  |  | (10) |  |  | (91) |  |  | 17 |  |  | (12) |
Post-tax adjusted earnings (loss) |  | 313 |  |  | (36) |  |  | (341) |  |  | (6) |  |  | (70) |
Less: Net income (loss) attributable to noncontrolling interests |  | — |  |  | — |  |  | — |  |  | 2 |  |  | 2 |
Less: Preferred stock dividends |  | — |  |  | — |  |  | — |  |  | 26 |  |  | 26 |
Adjusted earnings (loss) |  | $ | 313 |  |  | $ | (36) |  |  | $ | (341) |  |  | $ | (34) |  |  | (98) |
Adjustments for: |  |  |  |  |  |  |  |  |  |
Net investment gains (losses) |  |  |  |  |  |  |  |  |  | (42) |
Net derivative gains (losses), excluding investment hedge adjustments of $13 |  |  |  |  |  |  |  |  |  | (1,934) |
Change in market risk benefits |  |  |  |  |  |  |  |  |  | 1,440 |
Market value adjustments |  |  |  |  |  |  |  |  |  | 4 |
Provision for income tax (expense) benefit |  |  |  |  |  |  |  |  |  | 111 |
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders |  |  |  |  |  |  |  |  |  | $ | (519) |
Interest revenue |  | $ | 676 |  |  | $ | 107 |  |  | $ | 316 |  |  | $ | 168 |  |  |
Interest expense |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 38 |  |  |
|  | Three Months Ended March 31, 2023
|  | Annuities |  | Life |  | Run-off |  | Corporate & Other |  | Total
|  | (In millions)
Pre-tax adjusted earnings (loss) |  | $ | 387 |  |  | $ | — |  |  | $ | (134) |  |  | $ | 5 |  |  | $ | 258 |
Provision for income tax expense (benefit) |  | 73 |  |  | (1) |  |  | (28) |  |  | (9) |  |  | 35 |
Post-tax adjusted earnings (loss) |  | 314 |  |  | 1 |  |  | (106) |  |  | 14 |  |  | 223 |
Less: Net income (loss) attributable to noncontrolling interests |  | — |  |  | — |  |  | — |  |  | 2 |  |  | 2 |
Less: Preferred stock dividends |  | — |  |  | — |  |  | — |  |  | 26 |  |  | 26 |
Adjusted earnings (loss) |  | $ | 314 |  |  | $ | 1 |  |  | $ | (106) |  |  | $ | (14) |  |  | 195 |
Adjustments for: |  |  |  |  |  |  |  |  |  |
Net investment gains (losses) |  |  |  |  |  |  |  |  |  | (96) |
Net derivative gains (losses), excluding investment hedge adjustments of $38 |  |  |  |  |  |  |  |  |  | (613) |
Change in market risk benefits |  |  |  |  |  |  |  |  |  | (194) |
Market value adjustments |  |  |  |  |  |  |  |  |  | (8) |
Provision for income tax (expense) benefit |  |  |  |  |  |  |  |  |  | 191 |
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders |  |  |  |  |  |  |  |  |  | $ | (525) |
Interest revenue |  | $ | 594 |  |  | $ | 100 |  |  | $ | 254 |  |  | $ | 149 |  |  |
Interest expense |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 38 |  |  |
Total revenues by segment, as well as Corporate & Other, were as follows:
|  |  |  | Three Months Ended March 31,
|  |  |  |  |  | 2024 |  | 2023
|  |  |  |  |  | (In millions)
Annuities |  |  |  |  |  | $ | 1,304 |  |  | $ | 1,170 |
Life |  |  |  |  |  | 217 |  |  | 304 |
Run-off |  |  |  |  |  | 356 |  |  | 380 |
Corporate & Other |  |  |  |  |  | 173 |  |  | 139 |
Adjustments |  |  |  |  |  | (1,976) |  |  | (709) |
Total |  |  |  |  |  | $ | 74 |  |  | $ | 1,284 |
Total assets by segment, as well as Corporate & Other, were as follows at:
|  | March 31, 2024 |  | December 31, 2023
|  | (In millions)
Annuities |  | $ | 164,075 |  |  | $ | 160,775 |
Life |  | 25,824 |  |  | 25,504 |
Run-off |  | 26,507 |  |  | 26,828 |
Corporate & Other |  | 23,282 |  |  | 23,233 |
Total |  | $ | 239,688 |  |  | $ | 236,340 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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