Brighthouse Financial, Inc. Q4 FY2023 earnings call

Eric Steigerwalt highlighted 2023 progress: bought back $250M stock, strong sales results, enhanced product suite, controlled expenses, strong balance sheet. Priorities for 2024 include strengthening product suite, managing expenses down, balance sheet strength for capital return. Ed Spehar discussed RBC ratio, preliminary statutory results, new statutory requirement impact on reserves/capital, adjusted earnings in Q4, segment results.

Annuities segment reported adjusted earnings of $245 million in Q4. Life segment had adjusted earnings of $4 million. Run-off segment had an adjusted loss of $50 million. Corporate and Other had an adjusted loss of $10 million excluding notable items. For full year 2023, total annuity sales were $10.6 billion, total life insurance sales were $102 million. Field sales of Shield level annuity products totaled $6.9 billion, up 17% full year. Fixed rate annuities sales were $2.7 billion.

Eric mentioned continuing to strengthen product suite, manage expenses down in 2024, balance sheet strength allows returning capital. Ed noted financial position supports growth and capital return in 2024.

Forward-looking statements may differ due to risks in SEC filings. New statutory requirement impacts reserves and capital, but risk management strategy unchanged.

Q: Can you talk about the rule change impacts net?

A: Ed Spehar explained new statutory requirement impact on asset requirement, RBC ratio, and capital return plans.

Q: Update on 50 basis point increase in statutory mean reversion rate?

A: Ed Spehar said 50 basis points will be in Q1, too early to quantify impact.

Q: Outlook for surrender activity given sales volume?

A: David Rosenbaum said higher outflows in 2023 consistent with pricing assumptions, similar level expected in 2024.

Q: Normalized EPS and alts?

A: Edward Spehar and John Rosenthal discussed normalized EPS in $4 range, alts have long-term 9%-11% return expectation.

Q: CTE98 level change and normalized statutory earnings?

A: Ed Spehar said CTE98 change doesn't much change timing, normalized statutory earnings still volatile.

Q: New sales strain and RBC?

A: Edward Spehar said ~5 points of RBC still a reasonable expectation