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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): November 7, 2022
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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
Depositary Shares, each representing a 1/1,000th interest in a share of 4.625% Non-Cumulative Preferred Stock, Series DBHFAMThe 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 November 7, 2022, Brighthouse Financial, Inc. (“Brighthouse Financial” or the “Company”) issued (i) a news release announcing its results for the quarter ended September 30, 2022, 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 September 30, 2022, 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 September 30, 2022, 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/ Kristine H. Toscano
Name:Kristine H. Toscano
Title:Chief Accounting Officer

Date: November 7, 2022




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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 Third Quarter 2022 Results
Estimated combined risk-based capital ("RBC") ratio between 450% and 470%; holding company liquid assets of $1.1 billion
The company repurchased $447 million of its common stock year-to-date through November 3, 2022
Annuity sales increased 58% over the third quarter of 2021 and 50% sequentially
Life sales decreased 30% over the third quarter of 2021 and were flat sequentially
Third quarter 2022 net loss available to shareholders of $702 million, or $9.82 per diluted share
Third quarter 2022 adjusted loss, less notable items*, of $3 million, or $0.04 per diluted share

CHARLOTTE, NC, November 7, 2022 — Brighthouse Financial, Inc. ("Brighthouse Financial" or the "company") (Nasdaq: BHF) announced today its financial results for the third quarter ended September 30, 2022.

Third Quarter 2022 Results
The company reported a net loss available to shareholders of $702 million in the third quarter of 2022, or $9.82 per diluted share, compared with net income available to shareholders of $361 million in the third quarter of 2021. During the quarter, as a result of market performance, the value of our hedges decreased, as expected. Due to being accounted for as insurance liabilities as required under U.S. GAAP accounting, certain corresponding liabilities are less sensitive to market movements and, therefore, did not fully offset the decrease in the value of our hedges.

Additionally, in the third quarter of 2022, the company completed its annual actuarial review where it reviews its long-term assumptions. As part of this review, the company increased its long-term mean reversion interest rate assumption for the 10-year U.S. Treasury from 3.00% to 3.50%. As a result of the 2022 annual actuarial review, the net favorable impact to net income was $4 million, compared with a net unfavorable impact of $116 million as a result of the 2021 annual actuarial review.

The company ended the third quarter of 2022 with common stockholders' equity ("book value") of $4.1 billion, or $58.73 per common share, and book value, excluding accumulated other comprehensive income ("AOCI") of $10.8 billion, or $153.47 per common share.

For the third quarter of 2022, the company reported adjusted earnings* of $97 million, or $1.35 per diluted share, compared with adjusted earnings of $450 million, or $5.41 per diluted share, in the third quarter of 2021.
_______
* 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 Third Quarter 2022 Brighthouse Financial, Inc. Financial Supplement and/or the Third Quarter 2022 Brighthouse Financial, Inc. Earnings Call Presentation (which are available on the Brighthouse Financial Investor Relations webpage 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/62e79c90f6078ae5bf046a10882a7700-bhf-20191104_g1a.jpg
Adjusted earnings for the quarter reflected $100 million of net favorable notable items, or $1.39 per diluted share, including:
$117 million net favorable impact related to actuarial items, including the annual actuarial review, and
$17 million unfavorable impact 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 third quarter of 2022 were $217 million, up from $201 million in the second quarter of 2022, both on a pre-tax basis.
Annuity sales increased 58% quarter-over-quarter and 50% sequentially, driven by fixed deferred annuities. Life sales decreased 30% quarter-over-quarter and were flat sequentially, as a result of the recent macroeconomic headwinds.

During the third quarter of 2022, the company repurchased $136 million of its common stock, with an additional $52 million of its common stock repurchased, on a trade date basis, through November 3, 2022.

"In the third quarter of 2022, Brighthouse Financial maintained balance sheet strength, reported strong annuity sales and returned additional capital to shareholders through repurchasing more of our common stock, reflecting the continued execution of our focused strategy," said Eric Steigerwalt, president and CEO, Brighthouse Financial. "Regarding our sales results, I could not be prouder of our record annuity sales of $3.7 billion, as our strong and diverse product suite continues to meet the evolving needs of our clients."


Key Metrics (Unaudited, dollars in millions except share and per share amounts)
As of or For the Three Months Ended
September 30, 2022September 30, 2021
TotalPer shareTotalPer share
Net income (loss) available to shareholders (1)$(702)$(9.82)$361$4.34
Adjusted earnings (1)$97$1.35$450$5.41
Adjusted earnings, less notable items (1)$(3)$(0.04)$514$6.17
Weighted average common shares outstanding - diluted (1)71,959,380N/A83,244,987N/A
Book value$4,115$58.73$14,671$181.23
Book value, excluding AOCI$10,752$153.47$10,381$128.24
Ending common shares outstanding70,060,560N/A80,952,682N/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

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Results by Segment and Corporate & Other (Unaudited, in millions)
For the Three Months Ended
ADJUSTED EARNINGSSeptember 30,
2022
June 30,
2022
September 30,
2021
Annuities$125$204$385
Life (1)$(7)$23$110
Run-off (1)$(21)$(164)$38
Corporate & Other (1)$—$(39)$(83)
(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
September 30,
2022
June 30,
2022
September 30,
2021
Annuities (1)$3,721$2,486$2,362
Life$19$19$27
(1) Annuities sales include sales of a fixed index annuity product, which represents 100% of gross sales on directly written business and the proportion of assumed gross sales under reinsurance agreements. Sales of this product were $213 million for the third quarter of 2022, $206 million for the second quarter of 2022 and $198 million for the third quarter of 2021.
Annuities
Adjusted earnings in the Annuities segment were $125 million in the current quarter, compared with adjusted earnings of $385 million in the third quarter of 2021 and adjusted earnings of $204 million in the second quarter of 2022.
The current quarter included a $45 million unfavorable notable item and the third quarter of 2021 included a $42 million favorable notable item, both related to the annual actuarial review completed in the respective quarters. The second quarter of 2022 included a $14 million unfavorable notable item related to Shield Level annuities model refinements.
On a quarter-over-quarter basis, adjusted earnings, less notable items, reflect lower fees, higher reserves and higher deferred acquisition costs ("DAC") amortization, partially offset by lower expenses. On a sequential basis, adjusted earnings, less notable items, reflect lower fees and higher reserves, partially offset by lower DAC amortization.
As mentioned above, annuity sales increased 58% quarter-over-quarter and 50% sequentially, driven by fixed deferred annuities.
Life
The Life segment had an adjusted loss of $7 million in the current quarter, compared with adjusted earnings of $110 million in the third quarter of 2021 and adjusted earnings of $23 million in the second quarter of 2022.
The current quarter included a $5 million unfavorable notable item and the third quarter of 2021 included a $3 million favorable notable item, both related to the annual actuarial review completed in the respective quarters. The second quarter of 2022 included a $2 million unfavorable item related to new reinsurance agreements.
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PUBLIC RELATIONS

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

https://cdn.kscope.io/62e79c90f6078ae5bf046a10882a7700-bhf-20191104_g1a.jpg
On a quarter-over-quarter basis, the adjusted loss, less notable items, reflects lower net investment income and a lower underwriting margin. On a sequential basis, the adjusted loss, less notable items, reflects lower net investment income and higher expenses, partially offset by lower DAC amortization.
As mentioned above, life sales decreased 30% quarter-over-quarter and were flat sequentially, as a result of the recent macroeconomic headwinds.
Run-off
The Run-off segment had an adjusted loss of $21 million in the current quarter, compared with adjusted earnings of $38 million in the third quarter of 2021 and an adjusted loss of $164 million in the second quarter of 2022.
The current quarter included a $128 million favorable notable item and the third quarter of 2021 included an $89 million unfavorable notable item, both related to the annual actuarial review completed in the respective quarters. The second quarter of 2022 included $198 million of unfavorable notable items related to a settlement of a reinsurance matter, as well as new reinsurance agreements.
On a quarter-over-quarter basis, the adjusted loss, less notable items, reflects lower net investment income and a lower underwriting margin. On a sequential basis, the adjusted loss, less notable items, reflects lower net investment income, a lower underwriting margin and higher expenses.
Corporate & Other
Corporate & Other had breakeven adjusted earnings in the current quarter, compared with an adjusted loss of $83 million in the third quarter of 2021 and an adjusted loss of $39 million in the second quarter of 2022.
The current quarter included $22 million of net favorable notable items related to an actuarial item, partially offset by establishment costs. The third quarter of 2021 included a $20 million unfavorable notable item and the second quarter of 2022 included a $9 million unfavorable notable item, both related to establishment costs in the respective quarters.
On a quarter-over-quarter basis, the adjusted loss, less notable items, reflects higher net investment income. On a sequential basis, the adjusted loss, less notable items, reflects higher net investment income and lower expenses, partially offset by a lower tax benefit.


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PUBLIC RELATIONS

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

https://cdn.kscope.io/62e79c90f6078ae5bf046a10882a7700-bhf-20191104_g1a.jpg
Net Investment Income and Adjusted Net Investment Income (Unaudited, in millions)
For the Three Months Ended
September 30,
2022
June 30,
2022
September 30,
2021
Net investment income$877$1,061$1,281
Adjusted net investment income$900$1,070$1,287
Net Investment Income
Net investment income was $877 million and adjusted net investment income* was $900 million in the current quarter. On a quarter-over-quarter basis, adjusted net investment income decreased $387 million and on a sequential basis decreased $170 million. The quarter-over-quarter and sequential results were primarily driven by lower alternative investment income, partially offset by asset growth.
The net investment income yield was 3.20% during the quarter.

Statutory Capital and Liquidity (Unaudited, in billions)
As of
September 30,
2022 (1)
June 30,
2022
September 30,
2021
Statutory combined total adjusted capital$8.0$8.2$9.8
(1) Reflects preliminary statutory results as of September 30, 2022.
Capitalization

As of September 30, 2022:
Statutory combined total adjusted capital(1) ("TAC") decreased to approximately $8.0 billion, primarily due to a reduction in admitted deferred tax assets in the third quarter
Estimated combined RBC ratio(1) between 450% and 470%, which reflects the above-mentioned decrease in TAC, as well as capital requirements associated with continued growth in new business
Holding company liquid assets were approximately $1.1 billion









_______________
(1) Reflects preliminary statutory results as of September 30, 2022.
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PUBLIC RELATIONS

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

https://cdn.kscope.io/62e79c90f6078ae5bf046a10882a7700-bhf-20191104_g1a.jpg
Earnings Conference Call

Brighthouse Financial will hold a conference call and audio webcast to discuss its financial results for the third quarter of 2022 at 8:00 a.m. Eastern Time on Tuesday, November 8, 2022. 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 webpage 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 webpage at http://investor.brighthousefinancial.com. To join the conference call via telephone as a participant, please register in advance at https://register.vevent.com/register/BIf03c16919949474a8738f2e33b9a119c.

A replay of the conference call will be made available until Friday, November 25, 2022, on the Brighthouse Financial Investor Relations webpage 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 2021 admitted assets. Best's Review®: Top 200 U.S. Life/Health Insurers. AM Best, 2022.

CONTACT
FOR INVESTORS
Dana Amante
(980) 949-3073
damante@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/62e79c90f6078ae5bf046a10882a7700-bhf-20191104_g1a.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 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 risks associated with climate change; 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 events, military actions 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
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PUBLIC RELATIONS

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

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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").

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, 2021, 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 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 enhance the understanding of our performance by the investor community by highlighting the results of operations and the underlying profitability drivers of our business.

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/62e79c90f6078ae5bf046a10882a7700-bhf-20191104_g1a.jpg
Adjusted Earnings, Adjusted Revenues and Adjusted Expenses

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

Adjusted earnings reflects adjusted revenues less (i) adjusted expenses, (ii) provision for income tax expense (benefit), (iii) net income (loss) attributable to noncontrolling interests and (iv) 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 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 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 ("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) and (iii) GMIB Fees and GMIB Costs.

The tax impact of the adjustments discussed above 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 (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.
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PUBLIC RELATIONS

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

https://cdn.kscope.io/62e79c90f6078ae5bf046a10882a7700-bhf-20191104_g1a.jpg
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 unfavorable (favorable) after-tax 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.

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.

Holding Company Liquid Assets

Holding company liquid assets include liquid assets in Brighthouse Financial, Inc., Brighthouse Holdings, LLC, and Brighthouse Services, LLC. Liquid assets are comprised of 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 assets held in trust.

10



PUBLIC RELATIONS

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

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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, which represents 100 percent of gross sales on directly written business and the proportion of assumed gross sales under reinsurance agreements. 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 percentage 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 percentage 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 (loss) from operations adjusted for the favorable or unfavorable impacts of (i) net realized capital gains (losses), (ii) the change in total asset requirement at CTE98, net of the change in our variable annuity reserves, and (iii) unrealized gains (losses) associated with our variable annuities and other equity risk management strategies. 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.

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.
11



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
RevenuesSeptember 30,
2022
June 30,
2022
September 30,
2021
Premiums$162$167$193
Universal life and investment-type product policy fees783784881
Net investment income8771,0611,281
Other revenues121118117
Revenues before NIGL and NDGL1,9432,1302,472
Net investment gains (losses)(45)(66)(16)
Net derivative gains (losses)(416)1,73356
Total revenues$1,482$3,797$2,512
Expenses
Policyholder benefits and claims$1,246$1,108$1,112
Interest credited to policyholder account balances430319413
Amortization of DAC and VOBA179566(82)
Interest expense on debt383841
Other expenses457553538
Total expenses2,3502,5842,022
Income (loss) before provision for income tax(868)1,213490
Provision for income tax expense (benefit)(193)230105
Net income (loss)(675)983385
Less: Net income (loss) attributable to noncontrolling interests22
Net income (loss) attributable to Brighthouse Financial, Inc.(677)983383
Less: Preferred stock dividends252622
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders$(702)$957$361




12



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
ASSETSSeptember 30,
2022
June 30,
2022
September 30,
2021
Investments:
Fixed maturity securities available-for-sale$75,271$78,606$87,074
Equity securities1009690
Mortgage loans22,08921,50818,267
Policy loans1,2741,2771,264
Limited partnerships and limited liability companies4,6074,6833,959
Short-term investments1,1309201,892
Other invested assets4,0333,3452,774
Total investments108,504110,435115,320
Cash and cash equivalents4,7935,0714,108
Accrued investment income909852764
Reinsurance recoverables17,11615,64915,339
Premiums and other receivables761993959
DAC and VOBA5,6395,4345,356
Current income tax recoverable1818
Deferred income tax asset1,619471
Other assets446445484
Separate account assets81,83688,843112,361
Total assets$221,641$228,211$254,691
LIABILITIES AND EQUITY
Liabilities
Future policy benefits$41,786$41,142$43,795
Policyholder account balances71,32368,29363,748
Other policy-related balances3,3643,2733,406
Payables for collateral under securities loaned and other transactions6,5326,6755,639
Long-term debt3,1563,1573,436
Current income tax payable148
Deferred income tax liability1,120
Other liabilities7,7656,5724,942
Separate account liabilities81,83688,843112,361
Total liabilities215,762217,955238,595
Equity
Preferred stock, at par value
Common stock, at par value111
Additional paid-in capital14,09514,11313,830
Retained earnings (deficit)304981(705)
Treasury stock(1,949)(1,813)(1,385)
Accumulated other comprehensive income (loss)(6,637)(3,091)4,290
Total Brighthouse Financial, Inc.’s stockholders’ equity5,81410,19116,031
Noncontrolling interests656565
Total equity5,87910,25616,096
Total liabilities and equity$221,641$228,211$254,691
13



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
September 30,
2022
June 30,
2022
September 30,
2021
Net income (loss) available to shareholders$(702)$957$361
Less: Net investment gains (losses)(45)(66)(16)
Less: Net derivative gains (losses), excluding investment hedge adjustments
(439)1,72450
Less: GMIB Fees and GMIB Costs(336)(136)(83)
Less: Amortization of DAC and VOBA(212)(371)(64)
Less: Market value adjustments and other21312
Less: Provision for income tax (expense) benefit on reconciling adjustments
212(249)22
Adjusted earnings9724450
Less: Notable items100(223)(64)
Adjusted earnings, less notable items$(3)$247$514
ADJUSTED EARNINGS, LESS NOTABLE ITEMS PER COMMON SHARE (1)
Net income (loss) available to shareholders per common share$(9.82)$12.77$4.34
Less: Net investment gains (losses)(0.63)(0.88)(0.19)
Less: Net derivative gains (losses), excluding investment hedge adjustments
(6.14)23.000.60
Less: GMIB Fees and GMIB Costs(4.70)(1.81)(1.00)
Less: Amortization of DAC and VOBA(2.96)(4.95)(0.77)
Less: Market value adjustments and other0.290.410.02
Less: Provision for income tax (expense) benefit on reconciling adjustments2.96(3.32)0.26
Less: Impact of inclusion of dilutive shares0.01
Adjusted earnings per common share1.350.335.41
Less: Notable items1.39(2.97)(0.77)
Adjusted earnings, less notable items per common share$(0.04)$3.29$6.17
(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.

14



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
September 30,
2022
June 30,
2022
September 30,
2021
Net investment income$877$1,061$1,281
Less: Investment hedge adjustments(23)(9)(6)
Adjusted net investment income$900$1,070$1,287


Notable Items (Unaudited, in millions)
For the Three Months Ended
NOTABLE ITEMS IMPACTING ADJUSTED EARNINGSSeptember 30,
2022
June 30,
2022
September 30,
2021
Actuarial items and other insurance adjustments$(117)$214$44
Establishment costs17920
Total notable items (1)$(100)$223$64
NOTABLE ITEMS BY SEGMENT AND CORPORATE & OTHER
Annuities$45$14$(42)
Life52(3)
Run-off(128)19889
Corporate & Other(22)920
Total notable items (1)$(100)$223$64
(1) See Non-GAAP and Other Financial Disclosures discussion in this news release.

15


Document



Exhibit 99.2








Brighthouse Financial, Inc.
Financial Supplement

Third Quarter 2022

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Table of ContentsFinancial Results
Earnings and Select Metrics from Business Segments 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)September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021
Net income (loss) available to shareholders$(702)$957$613$42$361
Adjusted earnings$97$24$294$323$450
Adjusted earnings, less notable items (2)$(3)$247$315$416$514
Total corporate expenses (3)$217$201$208$247$222
Combined total adjusted capital (4)$8,000$8,188$8,495$9,441$9,750
Combined risk-based capital ratio (4), (5)450%-470%470%-490%450%-470%500%520%-540%
Stockholders' Equity
Brighthouse Financial, Inc.’s stockholders’ equity$5,814$10,191$12,814$16,142$16,031
Less: Preferred stock, net1,6991,6991,6991,6991,360
Brighthouse Financial, Inc.’s common stockholders’ equity, including AOCI$4,115$8,492$11,115$14,443$14,671
Less: AOCI(6,637)(3,091)3634,1724,290
Brighthouse Financial, Inc.’s common stockholders’ equity, excluding AOCI $10,752$11,583$10,752$10,271$10,381
Return on Common Equity (1)
Return on common equity8.6%15.5%7.5%(1.3)%(8.3)%
Return on common equity, excluding AOCI8.5%18.6%9.9%(1.9)%(11.9)%
Adjusted return on common equity6.9%10.3%14.5%15.3%13.5%
Earnings Per Common Share, Diluted (1), (6)
Net income (loss) available to shareholders per common share$(9.82)$12.77$7.91$0.51$4.34
Adjusted earnings per common share$1.35$0.33$3.79$4.02$5.41
Adjusted earnings, less notable items per common share$(0.04)$3.29$4.07$5.18$6.17
Weighted average common shares outstanding71,959,38074,971,65877,476,46580,244,57783,244,987
Book Value Per Common Share
Book value per common share (1)$58.73$116.21$146.64$185.48$181.23
Book value per common share, excluding AOCI (1)$153.47$158.51$141.85$131.90$128.24
Ending common shares outstanding70,060,56073,072,76675,799,70477,870,07280,952,682
(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 18.
(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 September 30, 2022. See additional information on page 22.
(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 Nine Months Ended
RevenuesSeptember 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021
September 30,
2022
September 30,
2021
Premiums$162$167$166$168$193$495$539
Universal life and investment-type product policy fees7837848419068812,4082,730
Net investment income8771,0611,1511,2011,2813,0893,680
Other revenues121118137101117376345
Revenues before NIGL and NDGL1,9432,1302,2952,3762,4726,3687,294
Net investment gains (losses)(45)(66)(68)(23)(16)(179)(36)
Net derivative gains (losses)(416)1,733513(337)561,830(2,132)
Total revenues$1,482$3,797$2,740$2,016$2,512$8,019$5,126
Expenses
Policyholder benefits and claims$1,246$1,108$906$823$1,112$3,260$2,620
Interest credited to policyholder account balances4303192903154131,039997
Amortization of DAC and VOBA179566227127(82)97217
Interest expense on debt3838384141114122
Other expenses4575534726615381,4821,627
Total expenses2,3502,5841,9331,9672,0226,8675,383
Income (loss) before provision for income tax(868)1,213807494901,152(257)
Provision for income tax expense (benefit)(193)230165(15)105202(90)
Net income (loss)(675)98364264385950(167)
Less: Net income (loss) attributable to noncontrolling interests221244
Net income (loss) attributable to Brighthouse Financial, Inc.(677)98364063383946(171)
Less: Preferred stock dividends25262721227868
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders$(702)$957$613$42$361$868$(239)

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Financial Supplement
3



GAAP Balance Sheets (Unaudited, in millions)
As of
ASSETSSeptember 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021
Investments:
Fixed maturity securities available-for-sale$75,271$78,606$82,496$87,582$87,074
Equity securities100968010190
Mortgage loans22,08921,50821,35719,85018,267
Policy loans1,2741,2771,2701,2641,264
Limited partnerships and limited liability companies4,6074,6834,5874,2713,959
Short-term investments1,1309201,0621,8411,892
Other invested assets4,0333,3452,5683,3162,774
Total investments108,504110,435113,420118,225115,320
Cash and cash equivalents4,7935,0714,1014,4744,108
Accrued investment income909852754724764
Reinsurance recoverables17,11615,64915,40115,34015,339
Premiums and other receivables761993889754959
DAC and VOBA5,6395,4345,5815,3775,356
Current income tax recoverable1818
Deferred income tax asset1,619471
Other assets446445465482484
Separate account assets81,83688,843104,441114,464112,361
Total assets$221,641$228,211$245,052$259,840$254,691
LIABILITIES AND EQUITY
Liabilities
Future policy benefits$41,786$41,142$41,979$43,807$43,795
Policyholder account balances71,32368,29367,88766,85163,748
Other policy-related balances3,3643,2733,4573,4573,406
Payables for collateral under securities loaned and other transactions6,5326,6756,2096,2695,639
Long-term debt3,1563,1573,1573,1573,436
Current income tax payable6162148
Deferred income tax liability2151,0621,120
Other liabilities7,7656,5724,7674,5044,942
Separate account liabilities81,83688,843104,441114,464112,361
Total liabilities215,762217,955232,173243,633238,595
Equity
Preferred stock, at par value
Common stock, at par value11111
Additional paid-in capital14,09514,11314,13314,15413,830
Retained earnings (deficit)304981(2)(642)(705)
Treasury stock(1,949)(1,813)(1,681)(1,543)(1,385)
Accumulated other comprehensive income (loss)(6,637)(3,091)3634,1724,290
Total Brighthouse Financial, Inc.’s stockholders’ equity5,81410,19112,81416,14216,031
Noncontrolling interests6565656565
Total equity5,87910,25612,87916,20716,096
Total liabilities and equity$221,641$228,211$245,052$259,840$254,691

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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 (Unaudited, in millions)
For the Three Months Ended September 30, 2022
Adjusted revenuesAnnuitiesLifeRun-offCorporate & OtherTotal
Premiums$30$113$2$17$162
Universal life and investment-type product policy fees49566161722
Net investment income54774168111900
Other revenues11128121
Total adjusted revenues$1,183$255$339$128$1,905
Adjusted expenses
Policyholder benefits and claims$439$185$255$(9)$870
Interest credited to policyholder account balances283247350430
Amortization of DAC and VOBA(32)18(19)(33)
Interest expense on debt3838
Other operating costs345373837457
Total adjusted expenses1,035264366971,762
Adjusted earnings before provision for income tax148(9)(27)31143
Provision for income tax expense (benefit)23(2)(6)419
Adjusted earnings after provision for income tax125(7)(21)27124
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends2727
Adjusted earnings$125$(7)$(21)$—$97
For the Three Months Ended September 30, 2021
Adjusted revenuesAnnuitiesLifeRun-offCorporate & OtherTotal
Premiums$49$122$3$19$193
Universal life and investment-type product policy fees63132156819
Net investment income567183505321,287
Other revenues10486118
Total adjusted revenues$1,351$345$670$51$2,417
Adjusted expenses
Policyholder benefits and claims$267$179$506$19$971
Interest credited to policyholder account balances30225778412
Amortization of DAC and VOBA(114)(34)2(146)
Interest expense on debt4141
Other operating costs415344544538
Total adjusted expenses8702046281141,816
Adjusted earnings before provision for income tax48114142(63)601
Provision for income tax expense (benefit)96314(4)127
Adjusted earnings after provision for income tax38511038(59)474
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends 2424
Adjusted earnings$385$110$38$(83)$450

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Financial Supplement
6


Statements of Adjusted Earnings by Segment and Corporate & Other (Cont.) (Unaudited, in millions)
For the Nine Months Ended September 30, 2022
Adjusted revenuesAnnuitiesLifeRun-offCorporate & OtherTotal
Premiums$84$354$2$55$495
Universal life and investment-type product policy fees1,5841704722,226
Net investment income1,6483399192213,127
Other revenues346822376
Total adjusted revenues$3,662$871$1,415$276$6,224
Adjusted expenses
Policyholder benefits and claims$899$625$1,152$11$2,687
Interest credited to policyholder account balances66553229911,038
Amortization of DAC and VOBA26277(14)325
Interest expense on debt114114
Other operating costs1,057652481121,482
Total adjusted expenses2,8838201,6293145,646
Adjusted earnings before provision for income tax77951(214)(38)578
Provision for income tax expense (benefit)1399(45)(22)81
Adjusted earnings after provision for income tax64042(169)(16)497
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends8282
Adjusted earnings$640$42$(169)$(98)$415
For the Nine Months Ended September 30, 2021
Adjusted revenuesAnnuitiesLifeRun-offCorporate & OtherTotal
Premiums$103$374$3$59$539
Universal life and investment-type product policy fees1,8522214702,543
Net investment income1,6505171,466633,696
Other revenues3012621348
Total adjusted revenues$3,906$1,138$1,960$122$7,126
Adjusted expenses
Policyholder benefits and claims$558$633$1,324$52$2,567
Interest credited to policyholder account balances6698023411994
Amortization of DAC and VOBA136218165
Interest expense on debt122122
Other operating costs1,2311261351351,627
Total adjusted expenses2,5948601,6933285,475
Adjusted earnings before provision for income tax1,312278267(206)1,651
Provision for income tax expense (benefit)2535831(33)309
Adjusted earnings after provision for income tax1,059220236(173)1,342
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends7272
Adjusted earnings$1,059$220$236$(245)$1,270

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Financial Supplement
7


Annuities — Statements of Adjusted Earnings (Unaudited, in millions)
For the Three Months EndedFor the Nine Months Ended
Adjusted revenuesSeptember 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021
September 30,
2022
September 30,
2021
Premiums$30$29$25$39$49$84$103
Universal life and investment-type product policy fees4955215686186311,5841,852
Net investment income5475465555675671,6481,650
Other revenues11111112486104346301
Total adjusted revenues$1,183$1,207$1,272$1,310$1,351$3,662$3,906
Adjusted expenses
Policyholder benefits and claims$439$268$192$159$267$899$558
Interest credited to policyholder account balances283192190195302665669
Amortization of DAC and VOBA(32)16013449(114)262136
Interest expense on debt
Other operating costs3453393734234151,0571,231
Total adjusted expenses1,0359598898268702,8832,594
Adjusted earnings before provision for income tax1482483834844817791,312
Provision for income tax expense (benefit)2344729496139253
Adjusted earnings$125$204$311$390$385$640$1,059

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Financial Supplement
8


Annuities — Select Operating Metrics (Unaudited, in millions)
For the Three Months Ended
VARIABLE AND SHIELD LEVEL ANNUITIES ACCOUNT VALUE (1)September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021
Account value, beginning of period$112,139$128,397$136,881$133,155$134,888
Premiums and deposits (2)1,7022,0351,8762,1112,201
Withdrawals, surrenders and contract benefits(2,504)(2,500)(2,758)(3,231)(3,039)
Net flows (3)(802)(465)(882)(1,120)(838)
Investment performance (4)(5,363)(15,219)(7,026)5,496(217)
Policy charges and other(582)(574)(576)(650)(678)
Account value, end of period$105,392$112,139$128,397$136,881$133,155
FIXED ANNUITIES ACCOUNT VALUE (5)
Account value, beginning of period$16,028$15,671$15,603$15,536$15,456
Premiums and deposits (2)2,055503241316222
Withdrawals, surrenders and contract benefits(283)(237)(266)(331)(234)
Net flows (3)1,772266(25)(15)(12)
Interest credited10996899299
Other29(5)4(10)(7)
Account value, end of period$17,938$16,028$15,671$15,603$15,536
INCOME ANNUITIES (1)
Income annuity insurance liabilities$4,576$4,587$4,613$4,644$4,642
(1) Includes general account and separate account.
(2) Includes premiums and deposits directed to the general account investment option of variable products.
(3) Deposits and withdrawals include policy exchanges.
(4) Includes the interest credited on the general account option of variable products.
(5) Includes fixed index annuities.
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Financial Supplement
9


Annuities — Select Operating Metrics (Cont.) (Unaudited, in millions)
For the Three Months EndedFor the Nine Months Ended
VARIABLE AND SHIELD LEVEL ANNUITY SALESSeptember 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021
September 30,
2022
September 30,
2021
Shield Level Annuities (1)$1,436$1,629$1,394$1,551$1,634$4,459$4,650
GMWB1492683343933967511,155
GMDB only6975878497231292
GMIB10131718174058
Total variable and Shield Level annuity sales$1,664$1,985$1,832$2,046$2,144$5,481$6,155
FIXED AND INCOME ANNUITY SALES
Fixed index annuities (2)$213$206$196$292$198$615$553
Fixed deferred annuities1,8412934119192,17583
Single premium immediate annuities221151
Other fixed and income annuities11111
Total fixed and income annuity sales$2,057$501$238$313$218$2,796$638
(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
10


Life — Statements of Adjusted Earnings (Unaudited, in millions)
For the Three Months EndedFor the Nine Months Ended
Adjusted revenuesSeptember 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021
September 30,
2022
September 30,
2021
Premiums$113$119$122$109$122$354$374
Universal life and investment-type product policy fees6645598032170221
Net investment income74112153156183339517
Other revenues2688826
Total adjusted revenues$255$276$340$353$345$871$1,138
Adjusted expenses
Policyholder benefits and claims$185$187$253$186$179$625$633
Interest credited to policyholder account balances2425428255380
Amortization of DAC and VOBA1833261(34)7721
Interest expense on debt
Other operating costs37325543465126
Total adjusted expenses264248308269204820860
Adjusted earnings before provision for income tax(9)28328414151278
Provision for income tax expense (benefit)(2)561731958
Adjusted earnings$(7)$23$26$67$110$42$220

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Financial Supplement
11


Life — Select Operating Metrics (Unaudited, in millions)
For the Three Months Ended
LIFE ACCOUNT VALUE: GENERAL ACCOUNTSeptember 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021
Universal and variable universal life account value, beginning of period$2,678$2,671$2,694$2,680$2,667
Premiums and deposits (1)5454568675
Withdrawals, surrenders and contract benefits(44)(34)(42)(33)(40)
Net flows1020145335
Net transfers from (to) separate account91715528
Interest credited242452826
Policy charges and other (58)(54)(57)(72)(76)
Universal and variable universal life account value, end of period$2,663$2,678$2,671$2,694$2,680
LIFE ACCOUNT VALUE: SEPARATE ACCOUNT
Variable universal life account value, beginning of period$5,251$6,262$6,861$6,598$6,721
Premiums and deposits4443454746
Withdrawals, surrenders and contract benefits(64)(52)(68)(81)(52)
Net flows(20)(9)(23)(34)(6)
Investment performance(263)(929)(513)357(31)
Net transfers from (to) general account(9)(16)(15)(5)(28)
Policy charges and other(47)(57)(48)(55)(58)
Variable universal life account value, end of period$4,912$5,251$6,262$6,861$6,598
(1) Includes premiums and deposits directed to the general account investment option of variable products.
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Financial Supplement
12


Life — Select Operating Metrics (Cont.) (Unaudited, in millions)
For the Three Months EndedFor the Nine Months Ended
LIFE SALESSeptember 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021
September 30,
2022
September 30,
2021
Total life sales$19$19$20$35$27$58$76
As of
LIFE INSURANCE IN-FORCESeptember 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021
Whole Life
Life Insurance in-force, before reinsurance$18,422$18,490$18,645$18,819$19,028
Life Insurance in-force, net of reinsurance$3,156$3,113$3,153$3,196$3,239
Term Life
Life Insurance in-force, before reinsurance$364,251$368,082$372,019$376,022$379,193
Life Insurance in-force, net of reinsurance$290,746$292,839$295,051$297,053$298,363
Universal and Variable Universal Life
Life Insurance in-force, before reinsurance$46,336$46,876$48,063$49,063$49,575
Life Insurance in-force, net of reinsurance$34,597$34,981$36,118$37,016$37,314

https://cdn.kscope.io/62e79c90f6078ae5bf046a10882a7700-bhf-20191104_g11.jpg    


Financial Supplement
13


Run-off — Statements of Adjusted Earnings (Unaudited, in millions)
For the Three Months EndedFor the Nine Months Ended
Adjusted revenuesSeptember 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021
September 30,
2022
September 30,
2021
Premiums$2$—$—$—$3$2$3
Universal life and investment-type product policy fees161157154145156472470
Net investment income1683504014445059191,466
Other revenues877862221
Total adjusted revenues$339$514$562$597$670$1,415$1,960
Adjusted expenses
Policyholder benefits and claims$255$480$417$483$506$1,152$1,324
Interest credited to policyholder account balances7375818177229234
Amortization of DAC and VOBA
Interest expense on debt
Other operating costs38166445645248135
Total adjusted expenses3667215426206281,6291,693
Adjusted earnings before provision for income tax(27)(207)20(23)42(214)267
Provision for income tax expense (benefit)(6)(43)4224(45)31
Adjusted earnings$(21)$(164)$16$(45)$38$(169)$236

https://cdn.kscope.io/62e79c90f6078ae5bf046a10882a7700-bhf-20191104_g11.jpg    


Financial Supplement
14


Run-off — Select Operating Metrics (Unaudited, in millions)
For the Three Months Ended
UNIVERSAL LIFE WITH SECONDARY GUARANTEES ACCOUNT VALUESeptember 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021
Account value, beginning of period$5,454$5,512$5,569$5,629$5,683
Premiums and deposits (1)173180177170167
Withdrawals, surrenders and contract benefits(32)(21)(32)(26)(20)
Net flows141159145144147
Interest credited4645625048
Policy charges and other(261)(262)(264)(254)(249)
Account value, end of period$5,380$5,454$5,512$5,569$5,629
As of
LIFE INSURANCE IN-FORCESeptember 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021
Universal Life with Secondary Guarantees
Life Insurance in-force, before reinsurance$72,847$73,393$73,813$74,535$75,020
Life Insurance in-force, net of reinsurance$36,308$36,611$36,887$37,206$37,000
(1) Includes premiums and deposits directed to the general account investment option of variable products.

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Financial Supplement
15


Corporate & Other — Statements of Adjusted Earnings (Unaudited, in millions)
For the Three Months EndedFor the Nine Months Ended
Adjusted revenuesSeptember 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021
September 30,
2022
September 30,
2021
Premiums$17$19$19$20$19$55$59
Universal life and investment-type product policy fees
Net investment income1116248393222163
Other revenues
Total adjusted revenues$128$81$67$59$51$276$122
Adjusted expenses
Policyholder benefits and claims$(9)$7$13$18$19$11$52
Interest credited to policyholder account balances5027141089111
Amortization of DAC and VOBA(19)2332(14)8
Interest expense on debt3838384141114122
Other operating costs37453012844112135
Total adjusted expenses9711998200114314328
Adjusted earnings before provision for income tax31(38)(31)(141)(63)(38)(206)
Provision for income tax expense (benefit)4(25)(1)(74)(4)(22)(33)
Adjusted earnings after provision for income tax27(13)(30)(67)(59)(16)(173)
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends
27262922248272
Adjusted earnings$—$(39)$(59)$(89)$(83)$(98)$(245)

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Other
Information

https://cdn.kscope.io/62e79c90f6078ae5bf046a10882a7700-bhf-20191104_g11.jpg    


Financial Supplement
17



DAC and VOBA and Net Derivative Gains (Losses) (Unaudited, in millions)
For the Three Months Ended
DAC AND VOBA ROLLFORWARDSeptember 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021
Balance, beginning of period$5,434$5,581$5,377$5,356$5,122
Capitalization104115109133126
Amortization:
Included in adjusted earnings, excluding notable items(157)(195)(163)(53)(127)
Related to notable items, included in adjusted expenses190273
Related to items not included in adjusted expenses(212)(371)(64)(74)(64)
Total amortization(179)(566)(227)(127)82
Unrealized investment gains (losses)2803043221526
Balance, end of period$5,639$5,434$5,581$5,377$5,356
As of
DAC AND VOBA BY SEGMENT AND CORPORATE & OTHERSeptember 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021