Brighthouse Financial reported fourth‑quarter 2025 net income available to shareholders of $112 million and adjusted earnings of $214 million, while full‑year 2025 figures were $331 million and $931 million respectively. The company’s adjusted earnings per diluted share of $3.93 fell short of the consensus estimate of $5.19, a miss of $1.26 per share. Revenue for the quarter was $2.17 billion, $92 million below the $2.27 billion consensus estimate, and the full‑year revenue of $2.17 billion also missed the $2.23 billion estimate. The miss reflects a combination of a $13 million unfavorable actuarial refinement and broader headwinds that weighed on profitability.
Compared with the same period a year earlier, Q4 2025 net income dropped from $646 million in Q4 2024 to $112 million, and adjusted earnings fell from $304 million to $214 million. Full‑year 2025 net income rose modestly from $286 million in 2024 to $331 million, but adjusted earnings declined from $1,209 million to $931 million. These shifts illustrate a sharp contraction in earnings quality in the most recent quarter, while the company’s overall profitability remains positive.
Segment performance highlights strong demand in core product lines. Annuity sales for the year reached a record $10.3 billion, up 3 % year‑over‑year, driven by a 22 % quarterly increase in Shield Level Annuities. Life insurance sales hit a record $143 million, up 19 % year‑over‑year, largely powered by the Brighthouse SmartCare product. These sales gains offset some of the pressure on earnings, but the unfavorable actuarial item and other one‑time charges still pushed the company below analyst expectations.
The earnings release noted a $13 million unfavorable notable item related to actuarial refinements, which reduced adjusted earnings. This item, along with other one‑time charges, explains why the company missed both EPS and revenue estimates despite solid sales growth. The company’s adjusted earnings less notable items were $227 million, or $3.93 per diluted share.
Headwinds for the quarter included the actuarial refinement and broader market conditions that impacted profitability. Tailwinds remained in the form of record annuity and life‑insurance sales, which demonstrate continued strength in the company’s core product lines. Brighthouse is also in the midst of a pending acquisition by Aquarian Capital, valued at approximately $4.1 billion, which has become the dominant narrative for investors. The company will not hold a conference call to discuss the results, underscoring its focus on completing the transaction.
Market reaction to the earnings was muted, with investors largely concentrating on the pending acquisition rather than the earnings miss. The company’s performance, while below expectations, still reflects resilience in its core business segments and a robust capital position, as evidenced by a preliminary combined risk‑based capital ratio of 456 %.
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