We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Brighthouse (BHF) Q2 Earnings and Revenues Top, Rise Y/Y
Read MoreHide Full Article
Brighthouse Financial Inc. (BHF - Free Report) reported second-quarter 2024 adjusted net income of $5.57 per share, which beat the Zacks Consensus Estimate by 27.8%. The bottom line improved 34.7% year over year.
The results reflected strong sales, including record sales of Shield Level Annuities as well as the effect of increased share buybacks.
Behind the Headlines
Total operating revenues of $2.2 billion increased 2.6% year over year, driven by higher net investment income and other income. The top line beat the consensus mark by 0.9%.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Premiums of $181 million decreased 14.2% year over year.
Adjusted net investment income was $1.3 billion in the quarter under review, up 8% year over year, primarily driven by alternative investment income, asset growth and higher interest rates. The adjusted investment income yield was 4.39%.
Total expenses were $1.4 million, up nearly threefold year over year, attributable to lower unfavorable change in market risk benefits. Corporate expenses, pretax, were $200 million, down 9.5% year over year.
Quarterly Segmental Update
Annuities recorded an adjusted operating income of $332 million, up 14.1% year over year. Annuity sales increased 2.6% to $2.4 billion, attributable to strong Shield Level Annuity sales and higher fixed indexed annuity sales from the company's recently launched SecureKey product.
Life’s adjusted operating income was $42 million, up nearly threefold year over year, on higher underwriting margin and lower expenses. Life insurance sales increased 12% to $28 million.
Adjusted operating loss at Run-off was $30 million, wider than the year-ago loss of $16 million, reflecting lower underwriting margin, partially offset by lower expenses.
Corporate & Other recorded adjusted operating income of $2 million against the year-ago loss of $19 million, reflecting higher net investment income and a higher tax benefit.
Financial Update
Cash and cash equivalents were $4.4 billion, up 18.8% year over year.
Shareholders’ equity of $4.2 billion at the end of second-quarter 2024 decreased 15.4% year over year.
Book value per share, excluding accumulated other comprehensive income, was $128.36 as of Jun 30, 2024, down 6.8% year over year.
Statutory combined total adjusted capital was $5.4 billion as of Jun 30, 2024, down 28.9% year over year.
As of Jun 30, 2024, the estimated combined risk-based capital ratio was 380%-400%.
Share Buyback Program
Brighthouse bought back shares worth $64 million in the second quarter of 2024, and another $25 million through Aug 2, 2024.
Voya Financial, Inc. (VOYA - Free Report) reported second-quarter 2024 adjusted operating earnings of $2.27 per share, which beat the Zacks Consensus Estimate by 3.6%. The bottom line, however, decreased 1.7% year over year. Adjusted operating revenues amounted to $324 million, down 6.6% year over year. The top line missed the Zacks Consensus Estimate by 0.4%.
Net investment income declined 5% year over year to $518 million. Premiums totaled $790 million, up 16.7% from the year-ago quarter. As of Jun 30, 2024, VOYA’s assets under management, assets under administration and advisement totaled $861.3 billion.
Reinsurance Group of America, Incorporated (RGA - Free Report) reported second-quarter 2024 adjusted operating earnings of $5.48 per share, which beat the Zacks Consensus Estimate by 10.9%. The bottom line increased 24.5% from the year-ago quarter. RGA's operating revenues of $5.1 billion improved 20.3% year over year, driven by higher net premiums, investment income, net of related expenses and other revenues. It beat the consensus estimate by 4.7%.
Net premiums of $3.9 billion jumped 17.5% year over year. RGA deployed $307 million for in-force transactions. Investment income and net of related expenses increased 26.3% from the prior-year quarter to $1.1 billion. The average investment yield increased 23 basis points to 4.65%, primarily due to higher new money rates.
Lincoln National Corporation’s (LNC - Free Report) second-quarter 2024 adjusted earnings of $1.84 per share beat the Zacks Consensus Estimate by 3.4%. However, the bottom line declined 8.9% year over year. Adjusted operating revenues of $4.5 billion dropped 4.3% year over year in the quarter under review. The top line lagged the consensus mark by 2.7%.
Fee income declined 1.9% year over year to $1.3 billion, which missed the Zacks Consensus Estimate by 2.1%. Insurance premiums of $1.6 billion rose 0.8% year over year. The metric beat the consensus mark by 0.7%. LNC’s net investment income of $1.3 billion dipped 11.7% year over year and missed the consensus mark by 1.7%. Meanwhile, other revenues fell 5.9% year over year.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Brighthouse (BHF) Q2 Earnings and Revenues Top, Rise Y/Y
Brighthouse Financial Inc. (BHF - Free Report) reported second-quarter 2024 adjusted net income of $5.57 per share, which beat the Zacks Consensus Estimate by 27.8%. The bottom line improved 34.7% year over year.
The results reflected strong sales, including record sales of Shield Level Annuities as well as the effect of increased share buybacks.
Behind the Headlines
Total operating revenues of $2.2 billion increased 2.6% year over year, driven by higher net investment income and other income. The top line beat the consensus mark by 0.9%.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Brighthouse Financial, Inc. price-consensus-eps-surprise-chart | Brighthouse Financial, Inc. Quote
Premiums of $181 million decreased 14.2% year over year.
Adjusted net investment income was $1.3 billion in the quarter under review, up 8% year over year, primarily driven by alternative investment income, asset growth and higher interest rates. The adjusted investment income yield was 4.39%.
Total expenses were $1.4 million, up nearly threefold year over year, attributable to lower unfavorable change in market risk benefits. Corporate expenses, pretax, were $200 million, down 9.5% year over year.
Quarterly Segmental Update
Annuities recorded an adjusted operating income of $332 million, up 14.1% year over year. Annuity sales increased 2.6% to $2.4 billion, attributable to strong Shield Level Annuity sales and higher fixed indexed annuity sales from the company's recently launched SecureKey product.
Life’s adjusted operating income was $42 million, up nearly threefold year over year, on higher underwriting margin and lower expenses. Life insurance sales increased 12% to $28 million.
Adjusted operating loss at Run-off was $30 million, wider than the year-ago loss of $16 million, reflecting lower underwriting margin, partially offset by lower expenses.
Corporate & Other recorded adjusted operating income of $2 million against the year-ago loss of $19 million, reflecting higher net investment income and a higher tax benefit.
Financial Update
Cash and cash equivalents were $4.4 billion, up 18.8% year over year.
Shareholders’ equity of $4.2 billion at the end of second-quarter 2024 decreased 15.4% year over year.
Book value per share, excluding accumulated other comprehensive income, was $128.36 as of Jun 30, 2024, down 6.8% year over year.
Statutory combined total adjusted capital was $5.4 billion as of Jun 30, 2024, down 28.9% year over year.
As of Jun 30, 2024, the estimated combined risk-based capital ratio was 380%-400%.
Share Buyback Program
Brighthouse bought back shares worth $64 million in the second quarter of 2024, and another $25 million through Aug 2, 2024.
Zacks Rank
Brighthouse currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Voya Financial, Inc. (VOYA - Free Report) reported second-quarter 2024 adjusted operating earnings of $2.27 per share, which beat the Zacks Consensus Estimate by 3.6%. The bottom line, however, decreased 1.7% year over year. Adjusted operating revenues amounted to $324 million, down 6.6% year over year. The top line missed the Zacks Consensus Estimate by 0.4%.
Net investment income declined 5% year over year to $518 million. Premiums totaled $790 million, up 16.7% from the year-ago quarter. As of Jun 30, 2024, VOYA’s assets under management, assets under administration and advisement totaled $861.3 billion.
Reinsurance Group of America, Incorporated (RGA - Free Report) reported second-quarter 2024 adjusted operating earnings of $5.48 per share, which beat the Zacks Consensus Estimate by 10.9%. The bottom line increased 24.5% from the year-ago quarter. RGA's operating revenues of $5.1 billion improved 20.3% year over year, driven by higher net premiums, investment income, net of related expenses and other revenues. It beat the consensus estimate by 4.7%.
Net premiums of $3.9 billion jumped 17.5% year over year. RGA deployed $307 million for in-force transactions. Investment income and net of related expenses increased 26.3% from the prior-year quarter to $1.1 billion. The average investment yield increased 23 basis points to 4.65%, primarily due to higher new money rates.
Lincoln National Corporation’s (LNC - Free Report) second-quarter 2024 adjusted earnings of $1.84 per share beat the Zacks Consensus Estimate by 3.4%. However, the bottom line declined 8.9% year over year. Adjusted operating revenues of $4.5 billion dropped 4.3% year over year in the quarter under review. The top line lagged the consensus mark by 2.7%.
Fee income declined 1.9% year over year to $1.3 billion, which missed the Zacks Consensus Estimate by 2.1%. Insurance premiums of $1.6 billion rose 0.8% year over year. The metric beat the consensus mark by 0.7%. LNC’s net investment income of $1.3 billion dipped 11.7% year over year and missed the consensus mark by 1.7%. Meanwhile, other revenues fell 5.9% year over year.