Brighthouse Financial’s first quarter results for 2025 reflected solid sales in both annuities and life insurance, even as revenue and adjusted earnings per share came in below Wall Street expectations. Management attributed the quarter’s performance to continued growth in Shield annuity products and steady expansion in life insurance sales, while acknowledging higher-than-expected corporate expenses. CEO Eric Steigerwalt cited a robust liquidity position and progress on capital-focused initiatives, stating, “We ended the quarter with holding company liquid assets of approximately $1 billion, maintaining a robust cash position.”
Is now the time to buy BHF? Find out in our full research report (it’s free).
Brighthouse Financial (BHF) Q1 CY2025 Highlights:
- Revenue: $2.16 billion vs analyst estimates of $2.28 billion (5.2% year-on-year growth, 5.3% miss)
- Adjusted EPS: $4.17 vs analyst expectations of $4.55 (8.4% miss)
- Market Capitalization: $2.99 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Brighthouse Financial’s Q1 Earnings Call
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Wes Carmichael (Autonomous Research) asked about the sustainability of fixed annuity sales and their outlook given competitive pressures. Chief Product and Underwriting Officer David Rosenbaum explained that the market remains highly competitive and rate-sensitive but Brighthouse aims to build momentum through pricing discipline and strong partnerships.
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John Barnidge (Piper Sandler) questioned trends in flows and surrender activity amid a dynamic environment. CEO Eric Steigerwalt noted that outflows, particularly from VA and Shield products, are expected to remain consistent or increase with more business coming out of surrender, especially in the second half of the year.
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Elyse Greenspan (Wells Fargo) sought clarity on capital charges and the RBC ratio. CFO Ed Spehar detailed the impact of mean reversion and seasonal capital charge benefits, emphasizing that statutory capital generation remains a focus and that higher strain is a result of writing value-creating business.
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Suneet Kamath (Jefferies) pressed on long-term strategic alternatives and value creation. CEO Eric Steigerwalt reiterated that the company will continue executing its current strategy, exploring value drivers, and is not constrained in growth or capital deployment.
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Alex Scott (Barclays) asked about cash flow projections and growth opportunities in the RILA and institutional markets. Management indicated that updated projections will be shared after hedging strategy changes are complete and maintained that growth in key product areas is not currently capital-constrained.
Catalysts in Upcoming Quarters
Looking ahead, our analysts will be tracking (1) the completion and impact of the revised hedging strategy for legacy annuity blocks, (2) net flows and surrender rates, particularly as fixed and Shield annuities exit surrender periods, and (3) progress in institutional partnerships, such as BlackRock’s LPP rollout. We’ll also watch for further capital management initiatives and any signs of expense normalization.
Brighthouse Financial currently trades at $52.13, down from $57.90 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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