Brighthouse Financial's 2024 Q4 Earnings Call: Diverging Views on RBC Ratios, Hedging Strategies, and Reinsurance Impacts

These are the key contradictions discussed in Brighthouse Financial's latest 2024Q4 earnings call, specifically including: Risk-Based Capital (RBC) Ratio Expectations, Impact of New Business Hedging Strategy, RBC Ratio Targets and Capital Efficiency, and Impact of Reinsurance Transactions:



Annuity Sales Performance:
- Brighthouse Financial reported $10 billion in total annuity sales for 2024, driven by record sales of its flagship Shield annuities product suite, reaching $7.7 billion, a 12% increase from 2023.
- The growth was attributed to the company's strategic expansion into the work site channel and successful product enhancements.

Life Insurance and Capital Management:
- Life insurance sales for the full year 2024 were $120 million, marking an 18% increase over 2023.
- The company's strategic initiatives, including reinsurance agreements and capital contributions, helped improve capital efficiency and maintain a strong statutory balance sheet.

Expense Discipline and Strategic Initiatives:
- Full-year corporate expenses were reduced by over 7% compared to 2023.
- This discipline was driven by a focus on expense management and strategic initiatives aimed at unlocking capital, including hedging strategies and reinsurance agreements.

Capital Management and Dividends:
- Brighthouse Financial contributed $100 million to its subsidiary, Brighthouse Life Insurance Company, to maintain a combined RBC ratio within its target range.
- The financial plan anticipates stable combined RBC ratios over the next few years, with potential future dividends from operating companies.