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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 10, 2021
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Brighthouse Financial, Inc.
(Exact name of registrant as specified in its charter)

Delaware
001-37905
81-3846992
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
11225 North Community House Road, Charlotte, North Carolina
28277
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code: (980) 365-7100

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareBHFThe Nasdaq Stock Market LLC
Depositary Shares, each representing a 1/1,000th interest in a share of 6.600% Non-Cumulative Preferred Stock, Series ABHFAPThe Nasdaq Stock Market LLC
Depositary Shares, each representing a 1/1,000th interest in a share of 6.750% Non-Cumulative Preferred Stock, Series BBHFAOThe Nasdaq Stock Market LLC
Depositary Shares, each representing a 1/1,000th interest in a share of 5.375% Non-Cumulative Preferred Stock, Series CBHFANThe Nasdaq Stock Market LLC
6.250% Junior Subordinated Debentures due 2058BHFALThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.




Item 2.02.   Results of Operations and Financial Condition.
On May 10, 2021, Brighthouse Financial, Inc. (“Brighthouse Financial” or the “Company”) issued (i) a news release announcing its results for the quarter ended March 31, 2021, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, and (ii) a Financial Supplement for the quarter ended March 31, 2021, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information in Items 2.02, 7.01 and Exhibits 99.1 and 99.2 listed in Item 9.01 of this Current Report on Form 8-K shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 7.01.  Regulation FD Disclosure.
In connection with its earnings call for the quarter ended March 31, 2021, Brighthouse Financial has prepared a presentation for use with investors and other members of the investment community. This presentation is available on the Brighthouse Financial investor relations website at http://investor.brighthousefinancial.com.

Brighthouse Financial routinely uses its investor relations website to provide presentations, press releases and other information that may be deemed material to investors. Accordingly, the Company encourages investors and others interested in the Company to review the information that it shares at http://investor.brighthousefinancial.com.

Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.Description
104*Cover Page Interactive Data File (embedded within the Inline XBRL document)

*    Filed herewith.
**    Furnished herewith.




1


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BRIGHTHOUSE FINANCIAL, INC.
By:/s/ Lynn A. Dumais
Name:Lynn A. Dumais
Title:Chief Accounting Officer

Date: May 10, 2021




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Document
PUBLIC RELATIONS

Brighthouse Financial, Inc.
11225 N. Community House Rd.
Charlotte, NC 28277

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Exhibit 99.1
FOR IMMEDIATE RELEASE
Brighthouse Financial Announces First Quarter 2021 Results
Estimated combined risk-based capital ("RBC") ratio between 500% and 520%; holding company liquid assets of $1.6 billion
The company repurchased $123 million of its common stock year-to-date through May 7, 2021
Annuity sales increased 8% over the first quarter of 2020
Life sales increased 44% over the first quarter of 2020
First quarter 2021 net loss available to shareholders of $610 million, or $6.96 per diluted share
First quarter 2021 adjusted earnings, less notable items*, of $428 million, or $4.86 per diluted share

CHARLOTTE, NC, May 10, 2021 — Brighthouse Financial, Inc. ("Brighthouse Financial" or the "company") (Nasdaq: BHF) announced today its financial results for the first quarter ended March 31, 2021.
First Quarter 2021 Results
The company reported a net loss available to shareholders of $610 million in the first quarter of 2021, or $6.96 per diluted share, compared with net income available to shareholders of $4,950 million in the first quarter of 2020. During the quarter, as a result of the favorable markets, the value of our hedges decreased, as expected. Due to being accounted for as insurance liabilities as required under U.S. GAAP, certain corresponding liabilities are less sensitive to market movements and, therefore, did not fully offset the decrease in the value of our hedges.
The company ended the first quarter of 2021 with common stockholders' equity ("book value") of $13.7 billion, or $157.26 per common share, and book value, excluding accumulated other comprehensive income ("AOCI") of $10.3 billion, or $118.24 per common share.
For the first quarter of 2021, the company reported adjusted earnings* of $385 million, or $4.36 per diluted share, compared with adjusted earnings of $211 million, or $2.01 per diluted share, in the first quarter of 2020.






_______________
* Information regarding the non-GAAP and other financial measures included in this news release and a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP measures are provided in the Non-GAAP and Other Financial Disclosures discussion below, as well as in the tables that accompany this news release and/or the First Quarter 2021 Brighthouse Financial, Inc. Financial Supplement and/or the First Quarter 2021 Brighthouse Financial, Inc. Earnings Call Presentation (which are available on the Brighthouse Financial Investor Relations web page at http://investor.brighthousefinancial.com). Additional information regarding notable items can be found on the last page of this news release.
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PUBLIC RELATIONS

Brighthouse Financial, Inc.
11225 N. Community House Rd.
Charlotte, NC 28277

https://cdn.kscope.io/849d20f258816c9c981155dab42921b2-bhf-20191104_g11a.jpg
Adjusted earnings for the quarter reflected $43 million after tax of unfavorable notable items, or $0.49 per diluted share, including:

$29 million unfavorable impact related to actuarial system conversions associated with the company's transition to its future state platform, and
$14 million for establishment costs related to planned technology and other expenses associated with the company's separation from its former parent company.

Corporate expenses in the first quarter of 2021 were $203 million, down from $236 million in the fourth quarter of 2020, both on a pre-tax basis.
Annuity sales increased 8% quarter-over-quarter, driven by higher sales of Shield Level Annuities and variable annuities with FlexChoice Access. Annuity sales decreased 28% sequentially, mainly driven by lower sales of fixed deferred annuities, which offset the growth in Shield Level Annuities and variable annuities with FlexChoice Access. Life sales increased 44% quarter-over-quarter and 53% sequentially.

During the first quarter of 2021, the company repurchased $68 million of its common stock, with an additional approximately $55 million of its common stock repurchased, on a trade date basis, through May 7, 2021. Since the announcement of the company's first stock repurchase authorization in August 2018, the company has repurchased $1,144 million of its common stock, on a trade date basis, through May 7, 2021.

"Brighthouse Financial reported strong results in the first quarter of 2021, including maintaining balance sheet strength, delivering solid sales, prudently managing our expenses and repurchasing more of our common stock,” said Eric Steigerwalt, president and CEO, Brighthouse Financial.

"I am very pleased with our sales results in the quarter. We reported record sales of both our flagship Shield Level Annuities and our variable annuities with FlexChoice Access. In addition, we grew life sales 44% on a quarter-over-quarter basis,” Steigerwalt continued. “Reflecting on the quarter, I could not be prouder of the contributions from our employees and distribution partners to our strong results."


Key Metrics (Unaudited, dollars in millions except share and per share amounts)

As of or For the Three Months Ended
March 31, 2021March 31, 2020
TotalPer shareTotalPer share
Net income (loss) available to shareholders (1)
$(610)$(6.96)$4,950$47.11
Adjusted earnings (1)$385$4.36$211$2.01
Adjusted earnings, less notable items (1)
$428$4.86$273$2.60
Weighted average common shares outstanding - diluted (1)
88,124,035N/A105,093,515N/A
Book value$13,657$157.26$19,962$198.62
Book value, excluding AOCI$10,268$118.24$17,315$172.28
Ending common shares outstanding86,841,260N/A100,502,488N/A
(1) Per share amounts are on a diluted basis and may not recalculate due to rounding. For loss periods, dilutive shares were not included in the calculation as inclusion of such shares would have an anti-dilutive effect. See Non-GAAP and Other Financial Disclosures discussion in this news release.
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PUBLIC RELATIONS

Brighthouse Financial, Inc.
11225 N. Community House Rd.
Charlotte, NC 28277

https://cdn.kscope.io/849d20f258816c9c981155dab42921b2-bhf-20191104_g11a.jpg

Results by Business Segment and Corporate & Other (Unaudited, in millions)
For the Three Months Ended
ADJUSTED EARNINGSMarch 31,
2021
December 31,
2020
March 31,
2020
Annuities$336$293$316
Life $42$13$11
Run-off (1)$76$25$(70)
Corporate & Other (1)$(69)$(142)$(46)
(1) The company uses the term “adjusted loss” throughout this news release to refer to negative adjusted earnings values.

Sales (Unaudited, in millions)
For the Three Months Ended
March 31,
2021
December 31,
2020
March 31,
2020
Annuities (1)$2,132$2,951$1,969
Life$23$15$16
(1) Annuities sales include sales of a fixed indexed annuity product sold by Massachusetts Mutual Life Insurance Company, representing 90% of gross sales of that product. Sales of this product were $182 million for the first quarter of 2021, $253 million for the fourth quarter of 2020, and $208 million for the first quarter of 2020.
Annuities
Adjusted earnings in the Annuities segment were $336 million in the current quarter, compared with adjusted earnings of $316 million in the first quarter of 2020 and adjusted earnings of $293 million in the fourth quarter of 2020.
There were no notable items in the current quarter or the comparison quarters.
On a quarter-over-quarter basis, adjusted earnings reflect higher net investment income, higher fees and lower reserves, partially offset by higher deferred acquisition costs ("DAC") amortization and higher expenses. On a sequential basis, adjusted earnings reflect higher net investment income and higher fees, partially offset by higher reserves.
As mentioned above, annuity sales increased 8% quarter-over-quarter, driven by higher sales of Shield Level Annuities and variable annuities with FlexChoice Access. Annuity sales decreased 28% sequentially, mainly driven by lower sales of fixed deferred annuities, which offset the growth in Shield Level Annuities and variable annuities with FlexChoice Access.
Life
Adjusted earnings in the Life segment were $42 million in the current quarter, compared with adjusted earnings of $11 million in the first quarter of 2020 and adjusted earnings of $13 million in the fourth quarter of 2020.
There were no notable items in the current quarter or in the first quarter of 2020. The fourth quarter of 2020 included a $17 million unfavorable notable item.
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PUBLIC RELATIONS

Brighthouse Financial, Inc.
11225 N. Community House Rd.
Charlotte, NC 28277

https://cdn.kscope.io/849d20f258816c9c981155dab42921b2-bhf-20191104_g11a.jpg
On a quarter-over-quarter basis, adjusted earnings reflect higher net investment income, partially offset by a lower underwriting margin. On a sequential basis, adjusted earnings, less notable items, reflect higher net investment income.
As mentioned above, life sales increased 44% quarter-over-quarter and 53% sequentially.
Run-off
Adjusted earnings in the Run-off segment were $76 million in the current quarter, compared with an adjusted loss of $70 million in the first quarter of 2020 and adjusted earnings of $25 million in the fourth quarter of 2020.
The current quarter included a $29 million unfavorable notable item related to actuarial system conversions associated with the company's transition to its future state platform. The first quarter of 2020 included a $48 million unfavorable notable item and there were no notable items in the fourth quarter of 2020.
On a quarter-over-quarter basis, adjusted earnings, less notable items, reflect higher net investment income. On a sequential basis, adjusted earnings, less notable items, reflect higher net investment income and a higher underwriting margin.
Corporate & Other
Corporate & Other had an adjusted loss of $69 million in the current quarter, compared with an adjusted loss of $46 million in the first quarter of 2020 and an adjusted loss of $142 million in the fourth quarter of 2020.
The current quarter included a $14 million unfavorable notable item related to establishment costs. The first quarter of 2020 included a $14 million unfavorable notable item, and the fourth quarter of 2020 included $66 million of unfavorable notable items.
On a quarter-over-quarter basis, the adjusted loss, less notable items, reflects higher total preferred stock dividends. On a sequential basis, the adjusted loss, less notable items, reflects a higher tax benefit and lower expenses, partially offset by higher total preferred stock dividends.

Net Investment Income and Adjusted Net Investment Income (Unaudited, in millions)
For the Three Months Ended
March 31,
2021
December 31,
2020
March 31,
2020
Net investment income$1,187$1,037$916
Adjusted net investment income$1,192$1,042$920

Net Investment Income
Net investment income was $1,187 million and adjusted net investment income* was $1,192 million in the current quarter. Adjusted net investment income increased $272 million on a quarter-over-quarter basis and increased $150 million on a sequential basis. The quarter-over-quarter and sequential results were primarily driven by higher alternative investment income.
The net investment income yield was 5.12% during the quarter.
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PUBLIC RELATIONS

Brighthouse Financial, Inc.
11225 N. Community House Rd.
Charlotte, NC 28277

https://cdn.kscope.io/849d20f258816c9c981155dab42921b2-bhf-20191104_g11a.jpg
Statutory Capital and Liquidity (Unaudited, in billions)
As of
March 31,
2021 (1)
December 31,
2020
March 31,
2020
Statutory combined total adjusted capital$9.4$8.6$7.2
(1) Reflects preliminary statutory results as of March 31, 2021.

Capitalization

At March 31, 2021:

Estimated combined RBC ratio between 500% and 520%

Holding company liquid assets were approximately $1.6 billion

Statutory combined total adjusted capital on a preliminary basis increased to approximately $9.4 billion, driven by strong capital markets in the quarter
5



PUBLIC RELATIONS

Brighthouse Financial, Inc.
11225 N. Community House Rd.
Charlotte, NC 28277

https://cdn.kscope.io/849d20f258816c9c981155dab42921b2-bhf-20191104_g11a.jpg
Earnings Conference Call

Brighthouse Financial will hold a conference call and audio webcast to discuss its financial results for the first quarter of 2021 at 8:00 a.m. Eastern Time on Tuesday, May 11, 2021. In connection with this call, the company has prepared a presentation for use with investors and other members of the investment community. This presentation is available on the Brighthouse Financial Investor Relations web page at http://investor.brighthousefinancial.com.

To listen to the audio webcast via the internet and to access the related presentation, please visit the Brighthouse Financial Investor Relations web page at http://investor.brighthousefinancial.com. To join the conference call via telephone, please dial (844) 358-9117 (+1 (209) 905-5952 from outside the U.S.) and use conference ID 9569868.

A replay of the conference call will be made available until Friday, May 28, 2021, on the Brighthouse Financial Investor Relations web page at http://investor.brighthousefinancial.com.



About Brighthouse Financial, Inc.

Brighthouse Financial, Inc. (Brighthouse Financial) (Nasdaq: BHF) is on a mission to help people achieve financial security. As one of the largest providers of annuities and life insurance in the U.S.,(1) we specialize in products designed to help people protect what they've earned and ensure it lasts. Learn more at brighthousefinancial.com.

(1) Ranked by 2019 admitted assets. Best's Review®: Top 200 U.S. Life/Health Insurers. A.M. Best, 2020.

CONTACT

FOR INVESTORS
David Rosenbaum
(980) 949-3326
david.rosenbaum@brighthousefinancial.com

FOR MEDIA
Deon Roberts
(980) 949-3071
deon.roberts@brighthousefinancial.com


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PUBLIC RELATIONS

Brighthouse Financial, Inc.
11225 N. Community House Rd.
Charlotte, NC 28277

https://cdn.kscope.io/849d20f258816c9c981155dab42921b2-bhf-20191104_g11a.jpg
Note Regarding Forward-Looking Statements

This news release and other oral or written statements that we make from time to time may contain information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve substantial risks and uncertainties. We have tried, wherever possible, to identify such statements using words such as "anticipate," "estimate," "expect," "project," "may," "will," "could," "intend," "goal," "target," "guidance," "forecast," "preliminary," "objective," "continue," "aim," "plan," "believe" and other words and terms of similar meaning, or that are tied to future periods, in connection with a discussion of future operating or financial performance. In particular, these include, without limitation, statements relating to future actions, prospective services or products, financial projections, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, as well as trends in operating and financial results.

Any or all forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining the actual future results of Brighthouse Financial. These statements are based on current expectations and the current economic environment and involve a number of risks and uncertainties that are difficult to predict. These statements are not guarantees of future performance. Actual results could differ materially from those expressed or implied in the forward-looking statements due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others: differences between actual experience and actuarial assumptions and the effectiveness of our actuarial models; higher risk management costs and exposure to increased market risk due to guarantees within certain of our products; the effectiveness of our variable annuity exposure risk management strategy and the impact of such strategy on volatility in our profitability measures and negative effects on our statutory capital; material differences from actual outcomes compared to the sensitivities calculated under certain scenarios and sensitivities that we may utilize in connection with our variable annuity risk management strategies; the impact of interest rates on our future ULSG policyholder obligations and net income volatility; the impact of the ongoing worldwide COVID-19 pandemic; the potential material adverse effect of changes in accounting standards, practices or policies applicable to us, including changes in the accounting for long-duration contracts; loss of business and other negative impacts resulting from a downgrade or a potential downgrade in our financial strength or credit ratings; the availability of reinsurance and the ability of the counterparties to our reinsurance or indemnification arrangements to perform their obligations thereunder; heightened competition, including with respect to service, product features, scale, price, actual or perceived financial strength, claims-paying ratings, credit ratings, e-business capabilities and name recognition; our ability to market and distribute our products through distribution channels; any failure of third parties to provide services we need, any failure of the practices and procedures of such third parties and any inability to obtain information or assistance we need from third parties; the ability of our subsidiaries to pay dividends to us, and our ability to pay dividends to our shareholders and repurchase our common stock; the adverse impact on liabilities for policyholder claims as a result of extreme mortality events; the impact of adverse capital and credit market conditions, including with respect to our ability to meet liquidity needs and access capital; the impact of economic conditions in the capital markets and the U.S. and global economy, as well as geo-political or catastrophic events, on our investment portfolio, including on realized and unrealized losses and impairments, net investment spread and net investment income; the impact of events that adversely affect issuers, guarantors or collateral relating to our investments or our derivatives counterparties, on impairments, valuation allowances, reserves, net investment income and changes in unrealized gain or loss positions; the impact of changes in regulation and in supervisory and enforcement policies on our insurance business or other operations; the potential material negative tax impact of potential future tax legislation that could make some of our products less attractive to consumers; the effectiveness of our policies and procedures in managing risk; the loss or disclosure of confidential information, damage to our reputation and impairment of our ability to conduct business effectively as a result of any failure in cyber- or other information security systems; whether all or any portion of the tax consequences of our separation from MetLife, Inc. (“MetLife”) are not as expected, leading to material additional taxes or material adverse consequences to tax attributes that impact us; the uncertainty of the outcome of any disputes with MetLife over tax-related or other matters and agreements or disagreements regarding MetLife’s or our obligations under our other agreements; and other factors described from time to time in documents that we file with the U.S. Securities and Exchange Commission (the "SEC").
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PUBLIC RELATIONS

Brighthouse Financial, Inc.
11225 N. Community House Rd.
Charlotte, NC 28277

https://cdn.kscope.io/849d20f258816c9c981155dab42921b2-bhf-20191104_g11a.jpg
For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements included and the risks, uncertainties and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 2020, particularly in the sections entitled "Risk Factors" and "Quantitative and Qualitative Disclosures About Market Risk," as well as in our other subsequent filings with the SEC. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.


Non-GAAP and Other Financial Disclosures

Our definitions of the non-GAAP and other financial measures may differ from those used by other companies.

Non-GAAP Financial Disclosures

We present certain measures of our performance that are not calculated in accordance with accounting principles generally accepted in the United States of America, also known as "GAAP." We believe that these non-GAAP financial measures highlight our results of operations and the underlying profitability drivers of our business, as well as enhance the understanding of our performance by the investor community.

The following non-GAAP financial measures, previously referred to as operating measures, should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP:
Non-GAAP financial measures:Most directly comparable GAAP financial measures:
adjusted earningsnet income (loss) available to shareholders (1)
adjusted earnings, less notable itemsnet income (loss) available to shareholders (1)
adjusted revenuesrevenues
adjusted expensesexpenses
adjusted earnings per common shareearnings per common share, diluted (1)
adjusted earnings per common share, less notable itemsearnings per common share, diluted (1)
adjusted return on common equityreturn on common equity (2)
adjusted return on common equity, less notable itemsreturn on common equity (2)
adjusted net investment income net investment income
__________________

(1) Brighthouse uses net income (loss) available to shareholders to refer to net income (loss) available to Brighthouse Financial, Inc.'s common shareholders, and earnings per common share, diluted to refer to net income (loss) available to shareholders per common share.
(2) Brighthouse uses return on common equity to refer to return on Brighthouse Financial, Inc.'s common stockholders' equity.

Reconciliations to the most directly comparable historical GAAP measures are included for those measures which are presented herein. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are not accessible on a forward-looking basis because we believe it is not possible without unreasonable efforts to provide other than a range of net investment gains and losses and net derivative gains and losses, which can fluctuate significantly within or outside the range and from period to period and may have a material impact on net income (loss) available to shareholders.

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PUBLIC RELATIONS

Brighthouse Financial, Inc.
11225 N. Community House Rd.
Charlotte, NC 28277

https://cdn.kscope.io/849d20f258816c9c981155dab42921b2-bhf-20191104_g11a.jpg
Adjusted Earnings, Adjusted Revenues and Adjusted Expenses

Adjusted earnings, which may be positive or negative, is used by management to evaluate performance, allocate resources and facilitate comparisons to industry results. This financial measure focuses on our primary businesses principally by excluding the impact of market volatility, which could distort trends.

Adjusted earnings reflects adjusted revenues less adjusted expenses, both net of income tax, and excludes net income (loss) attributable to noncontrolling interests and preferred stock dividends. Provided below are the adjustments to GAAP revenues and GAAP expenses used to calculate adjusted revenues and adjusted expenses, respectively.

The following are significant items excluded from total revenues, net of income tax, in calculating the adjusted revenues component of adjusted earnings:

Net investment gains (losses);

Net derivative gains (losses) ("NDGL"), except 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"); and

Certain variable annuity GMIB fees ("GMIB Fees").

The following are significant items excluded from total expenses, net of income tax, in calculating the adjusted expenses component of adjusted earnings:

Amounts associated with benefits related to GMIBs ("GMIB Costs");

Amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and market value adjustments associated with surrenders or terminations of contracts ("Market Value Adjustments"); and

Amortization of DAC and value of business acquired ("VOBA") related to (i) net investment gains (losses), (ii) net derivative gains (losses), (iii) GMIB Fees and GMIB Costs and (iv) Market Value Adjustments.

The tax impact of the adjustments mentioned is calculated net of the statutory tax rate, which could differ from our effective tax rate.

Consistent with GAAP guidance for segment reporting, adjusted earnings is also our GAAP measure of segment performance.

Adjusted Earnings per Common Share and Adjusted Return on Common Equity

Adjusted earnings per common share and adjusted return on common equity are measures used by management to evaluate the execution of our business strategy and align such strategy with our shareholders' interests.

Adjusted earnings per common share is defined as adjusted earnings for the period divided by the weighted average number of fully diluted shares of common stock outstanding for the period. The weighted average common shares outstanding used to calculate adjusted earnings per share will differ from such shares used to calculate diluted net income
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PUBLIC RELATIONS

Brighthouse Financial, Inc.
11225 N. Community House Rd.
Charlotte, NC 28277

https://cdn.kscope.io/849d20f258816c9c981155dab42921b2-bhf-20191104_g11a.jpg
(loss) available to shareholders per common share when the inclusion of dilutive shares has an anti-dilutive effect for one calculation but not for the other.

Adjusted return on common equity is defined as total annual adjusted earnings on a four quarter trailing basis, divided by the simple average of the most recent five quarters of total Brighthouse Financial, Inc.'s common stockholders' equity, excluding AOCI.

Adjusted Net Investment Income

We present adjusted net investment income to measure our performance for management purposes, and we believe it enhances the understanding of our investment portfolio results. Adjusted net investment income represents net investment income, including investment hedge adjustments.

Other Financial Disclosures

Corporate Expenses

Corporate expenses includes functional department expenses, public company expenses, certain investment expenses, retirement funding and incentive compensation; and excludes establishment costs.

Notable items

Certain of the non-GAAP measures described above may be presented further adjusted to exclude notable items. Notable items reflect the impact on our results of certain unanticipated items and events, as well as certain items and events that were anticipated, such as establishment costs. The presentation of notable items and non-GAAP measures, less notable items is intended to help investors better understand our results and to evaluate and forecast those results.

Book Value per Common Share and Book Value per Common Share, excluding AOCI

Brighthouse uses the term "book value" to refer to "Brighthouse Financial, Inc.'s common stockholders' equity, including AOCI." Book value per common share is defined as ending Brighthouse Financial, Inc.'s common stockholders' equity, including AOCI, divided by ending common shares outstanding. Book value per common share, excluding AOCI, is defined as ending Brighthouse Financial, Inc.'s common stockholders' equity, excluding AOCI, divided by ending common shares outstanding.

CTE95

CTE95 is defined as the amount of assets required to satisfy contract holder obligations across market environments in the average of the worst five percent of a set of capital market scenarios over the life of the contracts.

CTE98

CTE98 is defined as the amount of assets required to satisfy contract holder obligations across market environments in the average of the worst two percent of a set of capital market scenarios over the life of the contracts.

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PUBLIC RELATIONS

Brighthouse Financial, Inc.
11225 N. Community House Rd.
Charlotte, NC 28277

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Holding Company Liquid Assets

Holding company liquid assets include liquid assets in Brighthouse Financial, Inc., Brighthouse Holdings, LLC, and Brighthouse Services, LLC. Liquid assets include cash and cash equivalents, short-term investments and publicly traded securities excluding assets that are pledged or otherwise committed. Assets pledged or otherwise committed include amounts received in connection with derivatives and collateral financing arrangements.

Total Adjusted Capital

Total adjusted capital primarily consists of statutory capital and surplus, as well as the statutory asset valuation reserve. When referred to as “combined,” represents that of our insurance subsidiaries as a whole.

Sales

Life insurance sales consist of 100 percent of annualized new premium for term life, first-year paid premium for whole life, universal life, and variable universal life, and total paid premium for indexed universal life. We exclude company-sponsored internal exchanges, corporate-owned life insurance, bank-owned life insurance, and private placement variable universal life.

Annuity sales consist of 100 percent of direct statutory premiums, except for fixed index annuity sales distributed through MassMutual that consist of 90 percent of gross sales. Annuity sales exclude certain internal exchanges. These sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity.

Net Investment Income Yield

Similar to adjusted net investment income, we present net investment income yields as a performance measure we believe enhances the understanding of our investment portfolio results. Net investment income yields are calculated on adjusted net investment income as a percent of average quarterly asset carrying values. Asset carrying values exclude unrealized gains (losses), collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties. Investment fee and expense yields are calculated as investment fees and expenses as a percent of average quarterly asset estimated fair values. Asset estimated fair values exclude collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties.

Normalized Statutory Earnings (Loss)

Normalized statutory earnings (loss) is used by management to measure our insurance companies’ ability to pay future distributions and is reflective of whether our hedging program functions as intended. Normalized statutory earnings (loss) is calculated as statutory pre-tax net gain from operations adjusted for the favorable or unfavorable impacts of (i) net realized capital gains (losses), (ii) the change in total asset requirement at CTE95, net of the change in our variable annuity reserves, and (iii) unrealized gains (losses) associated with our variable annuities risk management strategy. Normalized statutory earnings (loss) may be further adjusted for certain unanticipated items that impacted our results in order to help management and investors better understand, evaluate and forecast those results.

11



PUBLIC RELATIONS

Brighthouse Financial, Inc.
11225 N. Community House Rd.
Charlotte, NC 28277

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Risk-Based Capital Ratio

The risk-based capital ratio is a method of measuring an insurance company’s capital, taking into consideration its relative size and risk profile, in order to ensure compliance with minimum regulatory capital requirements set by the National Association of Insurance Commissioners. When referred to as “combined,” represents that of our insurance subsidiaries as a whole. The reporting of our combined risk-based capital ratio is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities.
12



PUBLIC RELATIONS

Brighthouse Financial, Inc.
11225 N. Community House Rd.
Charlotte, NC 28277

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Condensed Statements of Operations (Unaudited, in millions)
For the Three Months Ended
RevenuesMarch 31,
2021
December 31,
2020
March 31,
2020
Premiums$184$191$198
Universal life and investment-type product policy fees930868886
Net investment income1,1871,037916
Other revenues127119102
Revenues before NIGL and NDGL2,4282,2152,102
Net investment gains (losses)14326(19)
Net derivative gains (losses)(1,504)(2,410)6,902
Total revenues$938$131$8,985
Expenses
Interest credited to policyholder account balances$297$276$259
Policyholder benefits and claims7566381,187
Amortization of DAC and VOBA91(156)770
Interest expense on debt414547
Other expenses521634470
Total expenses1,7061,4372,733
Income (loss) before provision for income tax(768)(1,306)6,252
Provision for income tax expense (benefit)(185)(275)1,293
Net income (loss)(583)(1,031)4,959
Less: Net income (loss) attributable to noncontrolling interests212
Net income (loss) attributable to Brighthouse Financial, Inc.(585)(1,032)4,957
Less: Preferred stock dividends25137
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders$(610)$(1,045)$4,950




13



PUBLIC RELATIONS

Brighthouse Financial, Inc.
11225 N. Community House Rd.
Charlotte, NC 28277

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Condensed Balance Sheets (Unaudited, in millions)
As of
ASSETSMarch 31,
2021
December 31,
2020
March 31,
2020
Investments:
Fixed maturity securities available-for-sale$78,971$82,495$71,302
Equity securities106138122
Mortgage loans15,69015,80815,547
Policy loans1,2451,2911,250
Limited partnerships and limited liability companies3,2192,8102,505
Short-term investments1,6733,2424,348
Other invested assets2,2673,7479,658
Total investments103,171109,531104,732
Cash and cash equivalents4,0254,1088,930
Accrued investment income734676868
Reinsurance recoverables15,25715,33814,220
Premiums and other receivables872820774
DAC and VOBA5,1484,9114,862
Current income tax recoverable9
Other assets506516550
Separate account assets112,224111,96989,008
Total assets$241,937$247,869$223,953
LIABILITIES AND EQUITY
Liabilities
Future policy benefits$42,426$44,448$40,653
Policyholder account balances55,15254,50847,288
Other policy-related balances3,3553,4113,169
Payables for collateral under securities loaned and other transactions4,2815,25210,988
Long-term debt3,4353,4364,365
Current income tax payable152126
Deferred income tax liability8121,6202,482
Other liabilities5,0185,0115,561
Separate account liabilities112,224111,96989,008
Total liabilities226,855229,781203,514
Equity
Preferred stock, at par value
Common stock, at par value111
Additional paid-in capital13,85813,87812,911
Retained earnings (deficit)(1,119)(534)5,521
Treasury stock(1,112)(1,038)(706)
Accumulated other comprehensive income (loss)3,3895,7162,647
Total Brighthouse Financial, Inc.’s stockholders’ equity15,01718,02320,374
Noncontrolling interests656565
Total equity15,08218,08820,439
Total liabilities and equity$241,937$247,869$223,953
14



PUBLIC RELATIONS

Brighthouse Financial, Inc.
11225 N. Community House Rd.
Charlotte, NC 28277

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Reconciliation of Net Income (Loss) Available to Shareholders to Adjusted Earnings and Adjusted Earnings, Less Notable Items, and Reconciliation of Net Income (Loss) Available to Shareholders per Common Share to Adjusted Earnings per Common Share and Adjusted Earnings, Less Notable Items per Common Share (Unaudited, in millions except per share data)
For the Three Months Ended
ADJUSTED EARNINGS, LESS NOTABLE ITEMS
March 31,
2021
December 31,
2020
March 31,
2020
Net income (loss) available to shareholders$(610)$(1,045)$4,950
Less: Net investment gains (losses)14326(19)
Less: Net derivative gains (losses), excluding investment hedge adjustments
(1,509)(2,415)6,898
Less: GMIB Fees and GMIB Costs122236(166)
Less: Amortization of DAC and VOBA84280(671)
Less: Market value adjustments and other3111(43)
Less: Provision for income tax (expense) benefit on reconciling adjustments
263328(1,260)
Adjusted earnings385189211
Less: Notable items(43)(83)(62)
Adjusted earnings, less notable items$428$272$273
ADJUSTED EARNINGS, LESS NOTABLE ITEMS PER COMMON SHARE (1)
Net income (loss) available to shareholders per common share$(6.96)$(11.69)$47.11
Less: Net investment gains (losses)0.163.65(0.18)
Less: Net derivative gains (losses), excluding investment hedge adjustments
(17.23)(27.03)65.64
Less: GMIB Fees and GMIB Costs1.392.64(1.58)
Less: Amortization of DAC and VOBA0.963.13(6.38)
Less: Market value adjustments and other0.350.12(0.41)
Less: Provision for income tax (expense) benefit on reconciling adjustments
3.003.67(11.99)
Less: Impact of inclusion of dilutive shares0.030.02
Adjusted earnings per common share4.362.102.01
Less: Notable items(0.49)(0.92)(0.59)
Adjusted earnings, less notable items per common share$4.86$3.03$2.60
(1) Per share calculations are on a diluted basis and may not recalculate or foot due to rounding. For loss periods, dilutive shares were not included in the calculation as inclusion of such shares would have an anti-dilutive effect. See Non-GAAP and Other Financial Disclosures discussion in this news release.

15



PUBLIC RELATIONS

Brighthouse Financial, Inc.
11225 N. Community House Rd.
Charlotte, NC 28277

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Reconciliation of Net Investment Income to Adjusted Net Investment Income (Unaudited, in millions)

For the Three Months Ended
March 31,
2021
December 31,
2020
March 31,
2020
Net investment income$1,187$1,037$916
Less: Investment hedge adjustments(5)(5)(4)
Adjusted net investment income$1,192$1,042$920


Notable Items (Unaudited, in millions)

For the Three Months Ended
NOTABLE ITEMS IMPACTING ADJUSTED EARNINGS
March 31,
2021
December 31,
2020
March 31,
2020
Actuarial items and other insurance adjustments$29$17$48
Establishment costs143214
Debt repayment costs34
Total notable items (1)$43$83$62
NOTABLE ITEMS BY SEGMENT AND CORPORATE & OTHER
Annuities$—$—$—
Life17
Run-off2948
Corporate & Other146614
Total notable items (1)$43$83$62
(1) Notable items reflect the negative (positive) after-tax impact to adjusted earnings of certain unanticipated items and events, as well as certain items and events that were anticipated, such as establishment costs. The presentation of notable items is intended to help investors better understand our results and to evaluate and forecast those results.

16


Document



Exhibit 99.2








Brighthouse Financial, Inc.
Financial Supplement

First Quarter 2021

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Table of ContentsFinancial Results
Earnings and Select Metrics from Business Segments and Corporate & Other
Statements of Adjusted Earnings by Segment and Corporate & Other
Other Information
Appendix
A-2
A-6
A-7
A-8
A-9
A-10

Note: See the Appendix for non-GAAP financial information, definitions and reconciliations. Financial information, unless otherwise noted, is rounded to millions. Some financial information, therefore, may not sum to the corresponding total.

As used in this financial supplement, “Brighthouse Financial,” “Brighthouse,” the “Company,” “we,” “our” and “us” refer to Brighthouse Financial, Inc.
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Financial Results
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Financial Supplement
1



Key Metrics (Unaudited, dollars in millions except per share amounts)

As of or For the Three Months Ended
Financial Results and Metrics (1)March 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
Net income (loss) available to shareholders$(610)$(1,045)$(3,012)$(1,998)$4,950
Adjusted earnings$385$189$(689)$11$211
Adjusted earnings, less notable items (2)$428$272$388$39$273
Total corporate expenses (3)$203$236$204$210$214
Combined total adjusted capital (4)$9,400$8,617$8,432$7,724$7,217
Combined risk-based capital ratio (4), (5)500%-520%487%525%-545%515%-535%515%-535%
Stockholders' Equity
Brighthouse Financial, Inc.’s stockholders’ equity$15,017$18,023$18,266$20,909$20,374
Less: Preferred stock, net1,3601,360802802412
Brighthouse Financial, Inc.’s common stockholders’ equity, including AOCI$13,657$16,663$17,464$20,107$19,962
Less: AOCI3,3895,7165,3814,9652,647
Brighthouse Financial, Inc.’s common stockholders’ equity, excluding AOCI $10,268$10,947$12,083$15,142$17,315
Return on Common Equity (1)
Return on common equity(37.9)%(6.1)%(6.3)%14.3%29.5%
Return on common equity, excluding AOCI(50.7)%(8.1)%(8.0)%17.8%35.4%
Adjusted return on common equity(0.8)%(2.0)%(1.3)%2.3%4.2%
Earnings Per Common Share, Diluted (1), (6)
Net income (loss) available to shareholders per common share$(6.96)$(11.69)$(32.49)$(21.10)$47.11
Adjusted earnings per common share$4.36$2.10$(7.43)$0.11$2.01
Adjusted earnings, less notable items per common share$4.86$3.03$4.19$0.41$2.60
Weighted average common shares outstanding88,124,03589,890,16292,693,18894,837,492105,093,515
Book Value Per Common Share
Book value per common share (1)$157.26$188.90$191.58$216.25$198.62
Book value per common share, excluding AOCI (1)$118.24$124.10$132.55$162.85$172.28
Ending common shares outstanding86,841,26088,211,61891,158,92792,979,854100,502,488
(1) See definitions for Non-GAAP and Other Financial Disclosures in the Appendix beginning on page A-2.
(2) See additional information regarding notable items on page 17.
(3) Includes functional department expenses, public company expenses, certain investment expenses, retirement funding and incentive compensation; and excludes establishment costs.
(4) Reflects preliminary statutory results as of or for the three months ended March 31, 2021. See additional information on page 21.
(5) The RBC ratio is reported as a preliminary range on the quarters.
(6) For loss periods, dilutive shares were not included in the calculation of net income (loss) available to shareholders per common share or adjusted earnings per common share as inclusion of such shares would have an anti-dilutive effect.

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Financial Supplement
2



GAAP Statements of Operations (Unaudited, in millions)

For the Three Months EndedFor the Three Months Ended
RevenuesMarch 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
March 31,
2021
March 31,
2020
Premiums$184$191$184$193$198$184$198
Universal life and investment-type product policy fees930868882827886930886
Net investment income1,1871,0379966529161,187916
Other revenues1271199993102127102
Revenues before NIGL and NDGL2,4282,2152,1611,7652,1022,4282,102
Net investment gains (losses)143265(34)(19)14(19)
Net derivative gains (losses)(1,504)(2,410)(1,857)(2,653)6,902(1,504)6,902
Total revenues$938$131$309$(922)$8,985$938$8,985
Expenses
Interest credited to policyholder account balances$297$276$281$276$259$297$259
Policyholder benefits and claims7566383,0478391,1877561,187
Amortization of DAC and VOBA91(156)244(92)77091770
Interest expense on debt41454745474147
Other expenses521634533532470521470
Total expenses1,7061,4374,1521,6002,7331,7062,733
Income (loss) before provision for income tax(768)(1,306)(3,843)(2,522)6,252(768)6,252
Provision for income tax expense (benefit)(185)(275)(850)(531)1,293(185)1,293
Net income (loss)(583)(1,031)(2,993)(1,991)4,959(583)4,959
Less: Net income (loss) attributable to noncontrolling interests212222
Net income (loss) attributable to Brighthouse Financial, Inc.(585)(1,032)(2,995)(1,991)4,957(585)4,957
Less: Preferred stock dividends25131777257
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders$(610)$(1,045)$(3,012)$(1,998)$4,950$(610)$4,950

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Financial Supplement
3



GAAP Balance Sheets (Unaudited, in millions)

As of
ASSETSMarch 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
Investments:
Fixed maturity securities available-for-sale$78,971$82,495$79,338$76,796$71,302
Equity securities106138117129122
Mortgage loans15,69015,80815,74615,79115,547
Policy loans1,2451,2911,2891,2011,250
Limited partnerships and limited liability companies3,2192,8102,5622,3542,505
Short-term investments1,6733,2424,2394,5374,348
Other invested assets2,2673,7475,0386,3649,658
Total investments103,171109,531108,329107,172104,732
Cash and cash equivalents4,0254,1086,1897,3258,930
Accrued investment income734676781664868
Reinsurance recoverables15,25715,33815,05214,35914,220
Premiums and other receivables8728201,035859774
DAC and VOBA5,1484,9114,6644,8564,862
Current income tax recoverable19
Other assets506516447532550
Separate account assets112,224111,969103,18499,59989,008
Total assets$241,937$247,869$239,681$235,367$223,953
LIABILITIES AND EQUITY
Liabilities
Future policy benefits$42,426$44,448$44,537$41,841$40,653
Policyholder account balances55,15254,50852,79850,33847,288
Other policy-related balances3,3553,4113,0883,1523,169
Payables for collateral under securities loaned and other transactions4,2815,2526,9897,87610,988
Long-term debt3,4353,4363,9793,9794,365
Current income tax payable15212672
Deferred income tax liability8121,6201,8162,5672,482
Other liabilities5,0185,0114,8875,0415,561
Separate account liabilities112,224111,969103,18499,59989,008
Total liabilities226,855229,781221,350214,393203,514
Equity
Preferred stock, at par value
Common stock, at par value11111
Additional paid-in capital13,85813,87813,31413,30712,911
Retained earnings (deficit)(1,119)(534)5113,5235,521
Treasury stock(1,112)(1,038)(941)(887)(706)
Accumulated other comprehensive income (loss)3,3895,7165,3814,9652,647
Total Brighthouse Financial, Inc.’s stockholders’ equity15,01718,02318,26620,90920,374
Noncontrolling interests6565656565
Total equity15,08218,08818,33120,97420,439
Total liabilities and equity$241,937$247,869$239,681$235,367$223,953

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Earnings and Select
Metrics from
Business Segments and Corporate & Other

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Financial Supplement
5


Statements of Adjusted Earnings by Segment and Corporate & Other (Cont.) (Unaudited, in millions)
For the Three Months Ended March 31, 2021
Adjusted revenuesAnnuitiesLifeRun-offCorporate & OtherTotal
Premiums$36$127$—$21$184
Universal life and investment-type product policy fees603106159868
Net investment income550166462141,192
Other revenues109117127
Total adjusted revenues$1,298$410$628$35$2,371
Adjusted expenses
Interest credited to policyholder account balances$185$31$80$—$296
Policyholder benefits and claims17323841918848
Amortization of DAC and VOBA127453175
Interest expense on debt4141
Other operating costs399444434521
Total adjusted expenses884358543961,881
Adjusted earnings before provision for income tax4145285(61)490
Provision for income tax expense (benefit)78109(19)78
Adjusted earnings after provision for income tax3364276(42)412
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends2727
Adjusted earnings$336$42$76$(69)$385
For the Three Months Ended March 31, 2020
Adjusted revenuesAnnuitiesLifeRun-offCorporate & OtherTotal
Premiums$35$141$—$22$198
Universal life and investment-type product policy fees56693162821
Net investment income46011632420920
Other revenues9047101
Total adjusted revenues$1,151$354$493$42$2,040
Adjusted expenses
Interest credited to policyholder account balances$155$27$77$—$259
Policyholder benefits and claims20423745417912
Amortization of DAC and VOBA3858399
Interest expense on debt4747
Other operating costs365195234470
Total adjusted expenses7623415831011,787
Adjusted earnings before provision for income tax38913(90)(59)253
Provision for income tax expense (benefit)732(20)(22)33
Adjusted earnings after provision for income tax31611(70)(37)220
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends99
Adjusted earnings$316$11$(70)$(46)$211

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Financial Supplement
6


Annuities — Statements of Adjusted Earnings (Unaudited, in millions)

For the Three Months EndedFor the Three Months Ended
Adjusted revenuesMarch 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
March 31,
2021
March 31,
2020
Premiums$36$38$34$40$35$36$35
Universal life and investment-type product policy fees603588569527566603566
Net investment income550486469405460550460
Other revenues1099185809010990
Total adjusted revenues$1,298$1,203$1,157$1,052$1,151$1,298$1,151
Adjusted expenses
Interest credited to policyholder account balances$185$165$169$162$155$185$155
Policyholder benefits and claims1731539164204173204
Amortization of DAC and VOBA1271181271573812738
Interest expense on debt
Other operating costs399407373364365399365
Total adjusted expenses884843678847762884762
Adjusted earnings before provision for income tax414360479205389414389
Provision for income tax expense (benefit)78679234737873
Adjusted earnings$336$293$387$171$316$336$316

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Financial Supplement
7


Annuities — Select Operating Metrics (Unaudited, in millions)

For the Three Months Ended
VARIABLE AND SHIELD LEVEL ANNUITIES ACCOUNT VALUE (1)March 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
Account value, beginning of period$124,227$115,111$110,993$100,691$116,426
Deposits1,9721,8381,4281,3191,607
Withdrawals, surrenders and contract benefits(2,748)(2,593)(1,958)(1,827)(2,656)
Net flows (2)(776)(755)(530)(508)(1,049)
Investment performance (3)2,86910,6635,40411,496(14,066)
Policy charges and other(793)(792)(756)(686)(620)
Account value, end of period$125,527$124,227$115,111$110,993$100,691
FIXED ANNUITIES ACCOUNT VALUE (4)
Account value, beginning of period$15,358$14,443$13,660$13,313$13,113
Deposits2311,159946548402
Withdrawals, surrenders and contract benefits(279)(332)(242)(291)(272)
Net flows (2)(48)827704257130
Interest credited10789989289
Other(13)(1)(19)(2)(19)
Account value, end of period$15,404$15,358$14,443$13,660$13,313
INCOME ANNUITIES (1)
Income annuity insurance liabilities$4,624$4,817$4,798$4,587$4,565
(1) Includes general account and separate account.
(2) Deposits and withdrawals include policy exchanges.
(3) Includes imputed interest on indexed annuities and the interest credited on the general account investment option of variable products.
(4) Includes fixed index annuities.
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Financial Supplement
8


Annuities — Select Operating Metrics (Cont.) (Unaudited, in millions)

For the Three Months EndedFor the Three Months Ended
VARIABLE AND SHIELD LEVEL ANNUITY SALESMarch 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
March 31,
2021
March 31,
2020
Shield Level Annuities (1)$1,423$1,359$934$905$1,140$1,423$1,140
GMWB/GMAB366332350277322366322
GMDB only95818782879587
GMIB23231922192319
Total variable and Shield Level annuity sales$1,907$1,795$1,390$1,286$1,568$1,907$1,568
FIXED AND INCOME ANNUITY SALES
Fixed index annuities (2)$182$253$234$309$208$182$208
Fixed deferred annuities4290270923919142191
Single premium immediate annuities114111
Other fixed and income annuities1111
Total fixed and income annuity sales$225$1,156$945$552$401$225$401
(1) Shield Level Annuities refers to our suite of structured annuities consisting of products marketed under various names.
(2) Represents 100% of gross sales on directly written business and the proportion of assumed gross sales under reinsurance agreements.

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Financial Supplement
9


Life — Statements of Adjusted Earnings (Unaudited, in millions)

For the Three Months EndedFor the Three Months Ended
Adjusted revenuesMarch 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
March 31,
2021
March 31,
2020
Premiums$127$131$129$132$141$127$141
Universal life and investment-type product policy fees1066283779310693
Net investment income16614413169116166116
Other revenues118774114
Total adjusted revenues$410$345$350$285$354$410$354
Adjusted expenses
Interest credited to policyholder account balances$31$27$27$25$27$31$27
Policyholder benefits and claims238246132148237238237
Amortization of DAC and VOBA45350(4)584558
Interest expense on debt
Other operating costs44544756194419
Total adjusted expenses358330256225341358341
Adjusted earnings before provision for income tax52159460135213
Provision for income tax expense (benefit)10218122102
Adjusted earnings$42$13$76$48$11$42$11

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Financial Supplement
10


Life — Select Operating Metrics (Unaudited, in millions)

For the Three Months Ended
LIFE ACCOUNT VALUE: GENERAL ACCOUNTMarch 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
Universal and variable universal life account value, beginning of period$2,674$2,670$2,674$2,691$2,682
Premiums and deposits (1)7469656774
Surrenders and contract benefits(46)(43)(38)(43)(33)
Net flows2826272441
Net transfers from (to) separate account825161119
Interest credited2826262525
Policy charges and other (68)(73)(73)(77)(76)
Universal and variable universal life account value, end of period$2,670$2,674$2,670$2,674$2,691
LIFE ACCOUNT VALUE: SEPARATE ACCOUNT
Variable universal life account value, beginning of period$6,230$5,582$5,261$4,478$5,493
Premiums and deposits4950505152
Surrenders and contract benefits(81)(54)(49)(44)(65)
Net flows(32)(4)17(13)
Investment performance237733390839(928)
Net transfers from (to) general account(8)(25)(16)(11)(19)
Policy charges and other(54)(56)(54)(52)(55)
Variable universal life account value, end of period$6,373$6,230$5,582$5,261$4,478
(1) Includes premiums and sales directed to the general account investment option of variable products.
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Financial Supplement
11


Life — Select Operating Metrics (Cont.) (Unaudited, in millions)

For the Three Months EndedFor the Three Months Ended
LIFE SALESMarch 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
March 31,
2021
March 31,
2020
Total life sales$23$15$13$12$16$23$16

As of
LIFE INSURANCE IN-FORCEMarch 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
Whole Life
Life Insurance in-force, before reinsurance$19,390$19,585$19,762$20,094$20,298
Life Insurance in-force, net of reinsurance$3,332$3,313$3,371$3,088$3,105
Term Life
Life Insurance in-force, before reinsurance$385,396$388,298$391,583$395,391$402,720
Life Insurance in-force, net of reinsurance$300,658$301,731$303,232$304,758$309,500
Universal and Variable Universal Life
Life Insurance in-force, before reinsurance$50,397$50,922$52,377$52,796$53,009
Life Insurance in-force, net of reinsurance$37,641$38,490$39,258$39,482$39,466

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Financial Supplement
12


Run-off — Statements of Adjusted Earnings (Unaudited, in millions)

For the Three Months EndedFor the Three Months Ended
Adjusted revenuesMarch 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
March 31,
2021
March 31,
2020
Premiums$—$2$—$—$—$—$—
Universal life and investment-type product policy fees159155163159162159162
Net investment income462396383166324462324
Other revenues7777777
Total adjusted revenues$628$560$553$332$493$628$493
Adjusted expenses
Interest credited to policyholder account balances$80$82$82$88$77$80$77
Policyholder benefits and claims4194051,870349454419454
Amortization of DAC and VOBA
Interest expense on debt
Other operating costs44494441524452
Total adjusted expenses5435361,996478583543583
Adjusted earnings before provision for income tax8524(1,443)(146)(90)85(90)
Provision for income tax expense (benefit)9(1)(304)(31)(20)9(20)
Adjusted earnings$76$25$(1,139)$(115)$(70)$76$(70)

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Financial Supplement
13


Run-off — Select Operating Metrics (Unaudited, in millions)

For the Three Months Ended
UNIVERSAL LIFE WITH SECONDARY GUARANTEES ACCOUNT VALUEMarch 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
Account value, beginning of period$5,823$5,865$5,930$5,979$6,018
Premiums and deposits (1)175181176181180
Surrenders and contract benefits(49)(23)(40)(31)(24)
Net flows126158136150156
Interest credited4951515757
Policy charges and other(258)(251)(252)(256)(252)
Account value, end of period$5,740$5,823$5,865$5,930$5,979

As of
LIFE INSURANCE IN-FORCEMarch 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
Universal Life with Secondary Guarantees
Life Insurance in-force, before reinsurance$76,050$76,745$76,342$76,872$77,428
Life Insurance in-force, net of reinsurance$36,690$37,044$36,842$37,126$37,481
(1) Includes premiums and sales directed to the general account investment option of variable products.

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Financial Supplement
14


Corporate & Other — Statements of Adjusted Earnings (Unaudited, in millions)

For the Three Months EndedFor the Three Months Ended
Adjusted revenuesMarch 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
March 31,
2021
March 31,
2020
Premiums$21$20$21$21$22$21$22
Universal life and investment-type product policy fees
Net investment income14161816201420
Other revenues2
Total adjusted revenues$35$38$39$37$42$35$42
Adjusted expenses
Interest credited to policyholder account balances$—$1$1$1$—$—$—
Policyholder benefits and claims18161014171817
Amortization of DAC and VOBA33(19)4333
Interest expense on debt41454745474147
Other operating costs341163271343434
Total adjusted expenses961817113510196101
Adjusted earnings before provision for income tax(61)(143)(32)(98)(59)(61)(59)
Provision for income tax expense (benefit)(19)(15)(38)(12)(22)(19)(22)
Adjusted earnings after provision for income tax(42)(128)6(86)(37)(42)(37)
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends
27141979279
Adjusted earnings$(69)$(142)$(13)$(93)$(46)$(69)$(46)

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Other
Information

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Financial Supplement
16



DAC and VOBA and Net Derivative Gains (Losses) (Unaudited, in millions)

For the Three Months Ended
DAC AND VOBA ROLLFORWARDMarch 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
Balance, beginning of period$4,911$4,664$4,856$4,862$5,448
Capitalization114128909298
Amortization:
Included in adjusted earnings, excluding notable items(155)(124)(121)(157)(99)
Related to notable items, included in adjusted expenses(20)(37)
Related to items not included in adjusted expenses84280(86)249(671)
Total amortization(91)156(244)92(770)
Unrealized investment gains (losses)214(37)(38)(190)86
Balance, end of period$5,148$4,911$4,664$4,856$4,862
As of
DAC AND VOBA BY SEGMENT AND CORPORATE & OTHERMarch 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
Annuities$4,117$3,829$3,574$3,733$3,745
Life9239719761,0271,018
Run-off55555
Corporate & Other1031061099194
Total DAC and VOBA$5,148$4,911$4,664$4,856$4,862

For the Three Months Ended
NET DERIVATIVE GAINS (LOSSES)March 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
Net derivative gains (losses):
Variable annuity hedges and embedded derivatives, net$(553)$(2,092)$(1,688)$(2,576)$5,181
ULSG hedges(958)(291)(97)(64)1,583
Other hedges and embedded derivatives2(32)(77)(17)134
Subtotal(1,509)(2,415)(1,862)(2,657)6,898
Investment hedge adjustments55544
Total net derivative gains (losses)$(1,504)$(2,410)$(1,857)$(2,653)$6,902

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Financial Supplement
17



Notable Items (Unaudited, in millions)

For the Three Months Ended
NOTABLE ITEMS IMPACTING ADJUSTED EARNINGSMarch 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
Actuarial items and other insurance adjustments$29$17$1,062$—$48
Establishment costs1432152814
Debt repayment costs34
Total notable items (1)$43$83$1,077$28$62
NOTABLE ITEMS BY SEGMENT AND CORPORATE & OTHER
Annuities$—$—$(102)$—$—
Life1711
Run-off291,17248
Corporate & Other1466(4)2814
Total notable items (1)$43$83$1,077$28$62
(1) Notable items reflect the negative (positive) after-tax impact to adjusted earnings of certain unanticipated items and events, as well as certain items and events that were anticipated, such as establishment costs. The presentation of notable items is intended to help investors better understand our results and to evaluate and forecast those results.

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Financial Supplement
18



Variable Annuity Separate Account Returns and Allocations (Unaudited)

For the Three Months Ended
VARIABLE ANNUITY SEPARATE ACCOUNT RETURNSMarch 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
Total Quarterly VA separate account gross returns2.93%11.48%6.04%14.11%(14.31)%
TOTAL VARIABLE ANNUITY SEPARATE ACCOUNT ALLOCATIONS
Percent allocated to equity funds29.28%27.88%26.85%26.31%24.11%
Percent allocated to bond funds/other funds8.44%8.43%8.82%8.73%9.59%
Percent allocated to target volatility funds20.15%21.69%22.38%22.85%24.41%
Percent allocated to balanced funds42.13%42.00%41.95%42.11%41.89%

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Financial Supplement
19



Summary of Investments (Unaudited, dollars in millions)
March 31, 2021December 31, 2020
Amount% of TotalAmount% of Total
Fixed maturity securities:
U.S. corporate securities$36,01933.60%$37,90633.36%
Foreign corporate securities11,23310.48%11,51110.13%
U.S. government and agency securities7,8117.29%8,6387.60%
Residential mortgage-backed securities7,8267.30%8,2947.30%
Commercial mortgage-backed securities6,6666.22%6,7905.98%
State and political subdivision securities4,6014.29%4,6404.08%
Asset-backed securities3,0512.85%2,8842.54%
Foreign government securities1,7641.64%1,8321.60%
Total fixed maturity securities78,97173.67%82,49572.59%
Equity securities1060.10%1380.12%
Mortgage loans:
Commercial mortgage loans9,6428.99%9,7148.55%
Agricultural mortgage loans3,6073.37%3,5383.11%
Residential mortgage loans2,5322.36%2,6502.33%
Allowance for credit losses(91)(0.08)%(94)(0.08)%
Total mortgage loans, net15,69014.64%15,80813.91%
Policy loans1,2451.16%