Overview
Quarterly adjusted EPS and adjusted net income rise YoY but missed analysts' expectations
Net income for Q3 rises significantly due to favorable actuarial adjustments
Brighthouse Financial announced, earlier on Thursday, co will be acquired by Aquarian Capital in $4.1 bln deal
Outlook
Brighthouse Financial expects to remain within RBC ratio target range of 400%-450% by year-end 2025
Company anticipates annual actuarial review will increase statutory reserves
Result Drivers
ANNUITY SALES - Record sales of Shield Level Annuities drove an 8% increase in annuity sales quarter-over-quarter
LIFE SALES - Life sales increased 27% quarter-over-quarter, driven by Brighthouse SmartCare
ACTUARIAL REVIEW IMPACT - Net income boosted by $316 mln favorable impact from annual actuarial review
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EPS | Miss | $4.54 | $5 (9 Analysts) |
Q3 EPS | $7.89 | ||
Q3 Adjusted Net Income | Miss | $261 mln | $272 mln (6 Analysts) |
Q3 Net Income | $453 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the multiline insurance & brokers peer group is "buy"
Wall Street's median 12-month price target for Brighthouse Financial Inc is $54.00, about 21.7% above its November 6 closing price of $65.70
The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 2 three months ago
Press Release: ID:nBw3Tk03Fa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)