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Brighthouse (BHF) Enhances Annuity Suite With New Launch

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Brighthouse Financial, Inc. (BHF - Free Report) recently announced the launch of Brighthouse SecureKey Fixed Indexed Annuities to its existing suite of annuity products. This new product is aimed at helping clients prepare well for their retirement by offering multiple benefits.

This annuity product will offer 100% protection on the client’s purchase payment against downside risks in the event of a market downturn. BHF will offer growth opportunities, enabling clients to choose to earn through Indexed Accounts and Fixed Accounts. Indexed Accounts will offer returns based on the performance of popular market index or indices, whereas Fixed Accounts will provide an annual fixed interest rate for clients demanding a more stable and consistent return.

This move bodes well for this Zacks Rank #3 (Hold) company, as launching new products and catering to the evolving landscape of retirement products should aid in increasing annuity revenues in the future. A significant portion of BHF earnings is attributable to annuity products, which increased 57.9% year over year in the third quarter of 2023. With the launch of SecureKey Fixed Indexed Annuities, BHF will be able to leverage its strong distribution relationships and is aiming to shift its business mix to less capital-intensive businesses. Moreover, a high-interest rate environment will further boost the company’s results in this segment.

This new launch should prove to be an attractive product for clients given the current environment, they are looking to enter the market but with some level of protection of their funds. BHF is also offering ReadyPay, providing an optional stream of guaranteed lifetime income for clients. This is expected to provide financial safety to clients. The company will charge no annual contract fees and provide higher withdrawal rates, death benefits, free withdrawals and tax-deferred growth opportunities.

Shares of BHF have gained 22.1 % over the past six months compared with the industry’s rise of 5.6%.

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Stocks to Consider

Some better-ranked stocks from the life insurance industry are American Equity Investment Life Holding Company , Primerica, Inc. (PRI - Free Report) and GoHealth, Inc. (GOCO - Free Report) . Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

American Equity has a solid track record of beating earnings estimates in two of the last four quarters and missing in the other two, the average being 13.53%. In the past year, AEL’s shares have gained 39.5%.

The Zacks Consensus Estimate for AEL’s 2023 earnings per share (EPS) indicates a year-over-year increase of 91.8%.

Primerica has a solid track record of beating earnings estimates in each of the last four quarters, the average being 7.84%. In the past year, PRI’s shares have gained 45.7%.

The Zacks Consensus Estimate for PRI’s 2023 and 2024 EPS indicates a year-over-year increase of 39.9% and 9.6%, respectively.

The Zacks Consensus Estimate for GoHealth’s 2023 and 2024 EPS indicates a year-over-year increase of 77.8% and 50%, respectively. In the past year, GOCO’s shares have surged 57.6%.

The Zacks Consensus Estimate for GOCO’s 2023 and 2024 revenues indicates a year-over-year increase of 29.9% and 8.5%, respectively.


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