Q2 2024 Brighthouse Financial Inc Earnings Call Transcript
Key Points
- Brighthouse Financial Inc (BHF) reported record sales of its flagship Shield Annuities, with sales exceeding $2 billion in the second quarter.
- The company maintained a robust liquidity position with $1.2 billion in liquid assets at the holding company as of June 30.
- Year-to-date Shield sales exceeded $3.9 billion, marking a 23% increase over the same period in 2023.
- Brighthouse Financial Inc (BHF) achieved strong adjusted earnings results, with second quarter adjusted earnings of $346 million or $5.57 per share.
- The company successfully launched BlackRock's LifePath Paycheck, receiving first deposits of over $340 million in the quarter.
- The estimated statutory combined risk-based capital (RBC) ratio was between 380% and 400%, below the target range of 400% to 450%.
- There was an approximately $600 million decline in statutory combined total adjusted capital due to the performance of the variable annuity and Shield business.
- The company experienced a normalized statutory loss of approximately $600 million in the quarter.
- Basis risk accounted for almost 40% of the normalized statutory loss, indicating volatility in the performance of separate account funds versus market indices.
- The underperformance of equity hedges relative to Shield liability movement accounted for approximately 30% of the loss in the quarter.
Good morning, ladies and gentlemen, and welcome to the Brighthouse Financials second quarter 2024 earnings conference call. My name is Victor, and I'll be your coordinator today. (Operator Instructions) As a reminder, the conference is being recorded for replay purposes. I now hand the presentation over to Dana Amante, Head of Investor Relations. Ms. Amante, you may proceed.
Thank you, and good morning. Welcome to Brighthouse Financial second quarter 2024 earnings call. Materials 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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