Q1 2024 Brighthouse Financial Inc Earnings Call Transcript
Key Points
- Brighthouse Financial Inc maintained a strong balance sheet with $1.3 billion of liquid assets and an RBC ratio between 415% and 435%, aligning with target ranges.
- The company returned $62 million to shareholders through repurchases of common stock in Q1 2024, continuing its commitment to capital return.
- Annuity sales increased by 5% sequentially and 3% year-over-year, totaling $2.9 billion in Q1 2024, demonstrating strong performance in the annuity product suite.
- Life insurance sales saw a significant increase, with a 26% rise compared to Q1 2023, indicating robust growth in this segment.
- Brighthouse Financial and BlackRock announced the availability of LifePath Paycheck in defined contribution plans, potentially expanding market reach and enhancing retirement solutions.
- Annuity net outflows were approximately $1.5 billion due to elevated surrenders influenced by the interest rate environment and business exiting the surrender charge period.
- The company reported a decrease in total adjusted capital by approximately $300 million from year-end 2023 due to a reinsurance premium rate increase.
- First quarter adjusted loss was $98 million, influenced by a $366 million unfavorable notable item related to reinsurance rate adjustments.
- There was a negative impact on normalized statutory earnings associated with growth, particularly from the Shield annuities now consuming capital.
- Management anticipates near-term volatility in results despite efforts to generate more predictable statutory free cash flows and a balanced exposure to equities.
Good morning, ladies and gentlemen, and welcome to Brighthouse Financial's First Quarter 2024 Earnings Conference Call. My name is Norma, and I'll be your coordinator today. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.
I would now like to turn the presentation over to Dana Amante, Head of Investor Relations. Ms. Amante, you may proceed.
Thank you, and good morning. Welcome to Brighthouse Financial's First Quarter 2024 Earnings Call. Material for today's call were released last night and can be found on the Investor Relations section of our website. We encourage you to review all of these materials.
Today, you will hear from Eric Steigerwalt, our President and Chief Executive Officer; and Ed Spehar, our Chief Financial Officer. Following our prepared remarks, we will open the call up for a question-and-answer period. Also here with us today to participate in the discussions are Myles Lambert, our Chief Distribution and Marketing Officer
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