Insurer Brighthouse Financial posts Q3 profit rise, but misses estimates

Overview

• Quarterly adjusted EPS and adjusted net income rise YoY but missed analysts' expectations

• Net income for Q3 rises significantly due to favorable actuarial adjustments

• Brighthouse Financial announced, earlier on Thursday, co will be acquired by Aquarian Capital in $4.1 bln deal

Outlook

• Brighthouse Financial expects to remain within RBC ratio target range of 400%-450% by year-end 2025

• Company anticipates annual actuarial review will increase statutory reserves

Result Drivers

• ANNUITY SALES - Record sales of Shield Level Annuities drove an 8% increase in annuity sales quarter-over-quarter

• LIFE SALES - Life sales increased 27% quarter-over-quarter, driven by Brighthouse SmartCare

• ACTUARIAL REVIEW IMPACT - Net income boosted by $316 mln favorable impact from annual actuarial review

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the multiline insurance & brokers peer group is "buy"

• Wall Street's median 12-month price target for Brighthouse Financial Inc is $54.00, about 21.7% above its November 6 closing price of $65.70

• The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 2 three months ago

Press Release: ID:nBw3Tk03Fa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)