What changed in this filing

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Item 1. Financial Statements

2021-11-05 compared with 2021-08-06 · 172 added, 162 removed, 1567 unchanged (18% of the section changed)

2 unchanged sentences

Interim Condensed Consolidated Balance Sheets

June 30, 2021 (Unaudited) and December 31, 2020

September 30, 2021 (Unaudited) and December 31, 2020

(In millions, except share and per share data)

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Fixed maturity securities available-for-sale, at estimated fair value (amortized cost:

54 unchanged sentences

Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

For the Three Months and Six Months Ended June 30, 2021 and 2020 (Unaudited)

For the Three Months and Nine Months Ended September 30, 2021 and 2020 (Unaudited)

(In millions, except per share data)

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

29 unchanged sentences

Interim Condensed Consolidated Statements of Equity

For the Three Months and Six Months Ended June 30, 2021 and 2020 (Unaudited)

For the Three Months and Nine Months Ended September 30, 2021 and 2020 (Unaudited)

(In millions)

15 unchanged sentences

( 1,120 ) ( 1,120 ) ( 1,120 )

Balance at March 31, 2021 — 1 13,858 ( 1,119 ) ( 1,112 ) 3,389 15,017 65 15,082

Balance at June 30,2021 — 1 13,842 ( 1,088 ) ( 1,236 ) 4,596 16,115 65 16,180

Treasury stock acquired in connection with share repurchases

4 unchanged sentences

Change in noncontrolling interests

— ( 2 ) ( 2 )

Net income (loss)

383 383 2 385

Other comprehensive income (loss), net of income tax

( 306 ) ( 306 ) ( 306 )

Balance at June 30, 2021 $ — $ 1 $ 13,842 $ ( 1,088 ) $ ( 1,236 ) $ 4,596 $ 16,115 $ 65 $ 16,180

Balance at September 30, 2021 $ — $ 1 $ 13,830 $ ( 705 ) $ ( 1,385 ) $ 4,290 $ 16,031 $ 65 $ 16,096

Preferred Stock Common Stock Additional Paid-in Capital Retained Earnings (Deficit) Treasury Stock at Cost Accumulated

4 unchanged sentences

Balance at January 1, 2020 — 1 12,908 571 ( 562 ) 3,243 16,161 65 16,226

Preferred stock issuance

— 390 390 390

Treasury stock acquired in connection with share repurchases

1 unchanged sentence

Share-based compensation

— 9 ( 3 ) 6 6

Dividends on preferred stock ( 14 ) ( 14 ) ( 14 )

5 unchanged sentences

1,722 1,722 1,722

Balance at March 31, 2020 — 1 12,911 5,521 ( 706 ) 2,647 20,374 65 20,439

Preferred stock issuance

— 390 390 390

Balance at June 30, 2020 — 1 13,307 3,523 ( 887 ) 4,965 20,909 65 20,974

Treasury stock acquired in connection with share repurchases

1 unchanged sentence

Share-based compensation

— 6 ( 1 ) 5 5

Dividends on preferred stock

1 unchanged sentence

Change in noncontrolling interests

— ( 2 ) ( 2 )

Net income (loss)

1 unchanged sentence

Other comprehensive income (loss), net of income tax

2,318 2,318 2,318

Balance at June 30, 2020 $ — $ 1 $ 13,307 $ 3,523 $ ( 887 ) $ 4,965 $ 20,909 $ 65 $ 20,974

Balance at September 30, 2020 $ — $ 1 $ 13,314 $ 511 $ ( 941 ) $ 5,381 $ 18,266 $ 65 $ 18,331

See accompanying notes to the interim condensed consolidated financial statements.

1 unchanged sentence

Interim Condensed Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2021 and 2020 (Unaudited)

For the Nine Months Ended September 30, 2021 and 2020 (Unaudited)

(In millions)

Six Months Ended

Nine Months Ended

September 30,

Net cash provided by (used in) operating activities $ 644 $ 515

15 unchanged sentences

Net change in other invested assets ( 13 ) ( 19 )

Other, net — ( 14 )

Net cash provided by (used in) investing activities

38 unchanged sentences

Consolidation

The accompanying interim condensed consolidated financial statements include the accounts of Brighthouse Financial, as well as partnerships and limited liability companies (“LLCs”) that the Company controls.

Intercompany accounts and transactions have been eliminated.

11 unchanged sentences

The Company considers the applicability and impact of all ASUs.

There were no ASUs adopted as of June 30, 2021.

There were no ASUs adopted as of September 30, 2021.

Brighthouse Financial, Inc.

7 unchanged sentences

These changes (i) require all guarantees that qualify as market risk benefits to be measured at fair value, (ii) require more frequent updating of assumptions and modify existing discount rate requirements for certain insurance liabilities, (iii) modify the methods of amortization for deferred policy acquisition costs (“DAC”), and (iv) require new qualitative and quantitative disclosures around insurance contract asset and liability balances and the judgments, assumptions and methods used to measure those balances.

The market risk benefit guidance is required to be applied on a retrospective basis, while the changes to guidance for insurance liabilities and DAC may be applied to existing carrying amounts on the effective date or on a retrospective basis.

The market risk benefit guidance is required to be applied on a retrospective basis, while the changes to guidance for insurance liabilities and DAC will be applied to existing carrying amounts on the effective date.

The Company continues to evaluate the new guidance and therefore is unable to estimate the impact on its financial statements.

13 unchanged sentences

The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by the investor community by highlighting the results of operations and the underlying profitability drivers of the business.

Adjusted earnings should not be viewed as a substitute for net income (loss) available to BHF’s common shareholders and excludes net income (loss) attributable to noncontrolling interests and preferred stock dividends.

Adjusted earnings, which may be positive or negative, focuses on the Company’s primary businesses principally by excluding the impact of market volatility, which could distort trends.

The following are significant items excluded from total revenues in calculating adjusted earnings:

• Net investment gains (losses);

Brighthouse Financial, Inc.

1 unchanged sentence

Segment Information (continued)

The following are significant items excluded from total revenues, net of income tax, in calculating adjusted earnings:

• Net investment gains (losses);

• Net derivative gains (losses) except earned income and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment;

• Certain variable annuity guaranteed minimum income benefits (“GMIB”) fees (“GMIB Fees”).

The following are significant items excluded from total expenses, net of income tax, in calculating adjusted earnings:

The following are significant items excluded from total expenses in calculating adjusted earnings:

• Amounts associated with benefits related to GMIBs (“GMIB Costs”);

2 unchanged sentences

(i) net investment gains (losses), (ii) net derivative gains (losses), (iii) GMIB Fees and GMIB Costs and (iv) Market Value Adjustments.

The tax impact of the adjustments mentioned above is calculated net of the statutory tax rate, which could differ from the Company’s effective tax rate.

The tax impact of the adjustments discussed above is calculated net of the statutory tax rate, which could differ from the Company’s effective tax rate.

The segment accounting policies are the same as those used to prepare the Company’s interim condensed consolidated financial statements, except for the adjustments to calculate adjusted earnings described above.

7 unchanged sentences

Operating results by segment, as well as Corporate & Other, were as follows:

Three Months Ended June 30, 2021

Three Months Ended September 30, 2021

Annuities Life Run-off Corporate & Other Total

17 unchanged sentences

Segment Information (continued)

Three Months Ended June 30, 2020

Three Months Ended September 30, 2020

Annuities Life Run-off Corporate & Other Total

14 unchanged sentences

Interest expense $ — $ — $ — $ 47

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

Annuities Life Run-off Corporate & Other Total

17 unchanged sentences

Segment Information (continued)

Six Months Ended June 30, 2020

Nine Months Ended September 30, 2020

Annuities Life Run-off Corporate & Other Total

16 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

7 unchanged sentences

Total assets by segment, as well as Corporate & Other, were as follows at:

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

(In millions)

10 unchanged sentences

Information regarding the Company’s guarantee exposure was as follows at:

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Event of Death At

9 unchanged sentences

Average attained age of contract holders 71 years 70 years 70 years 70 years

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Secondary Guarantees

28 unchanged sentences

Fixed maturity securities by sector were as follows at:

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Cost Allowance for Credit Losses Gross Unrealized Estimated

12 unchanged sentences

Total fixed maturity securities $ 78,425 $ 7 $ 9,085 $ 429 $ 87,074 $ 70,529 $ 2 $ 12,117 $ 149 $ 82,495

The Company held non-income producing fixed maturity securities with an estimated fair value of $ 5 million at both June 30, 2021 and December 31, 2020.

The Company held non-income producing fixed maturity securities with an estimated fair value of $ 5 million at both September 30, 2021 and December 31, 2020.

Maturities of Fixed Maturity Securities

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at June 30, 2021:

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at September 30, 2021:

Year or Less Due After One

17 unchanged sentences

The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at:

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Less than 12 Months 12 Months or Greater Less than 12 Months 12 Months or Greater

36 unchanged sentences

An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income.

The accrued interest receivable on fixed maturity securities totaled $ 527 million and $ 514 million at June 30, 2021 and December 31, 2020, respectively, and is included in accrued investment income.

The accrued interest receivable on fixed maturity securities totaled $ 580 million and $ 514 million at September 30, 2021 and December 31, 2020, respectively, and is included in accrued investment income.

Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”).

6 unchanged sentences

Current Period Evaluation

Based on the Company’s current evaluation of its fixed maturity securities in an unrealized loss position and the current intent or requirement to sell, the Company recorded an allowance for credit losses of $ 9 million, relating to five securities at June 30, 2021.

Based on the Company’s current evaluation of its fixed maturity securities in an unrealized loss position and the current intent or requirement to sell, the Company recorded an allowance for credit losses of $ 7 million, relating to five securities at September 30, 2021.

Management concluded that for all other fixed maturity securities in an unrealized loss position, the unrealized loss was not due to issuer-specific credit-related factors and as a result was recognized in OCI.

1 unchanged sentence

These issuers continued to make timely principal and interest payments and the estimated fair value is expected to recover as the securities approach maturity.

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

Investments (continued)

Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector

The changes in the allowance for credit losses by sector were as follows:

Corporate Foreign Corporate Foreign Government Total

Corporate RMBS Foreign Corporate CMBS Total

(In millions)

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

Balance, beginning of period $ 2 $ — $ — $ — $ 2

Allowance on securities where credit losses were not previously recorded — — 6 1 7

Reductions for securities sold ( 1 ) — — — ( 1 )

Change in allowance on securities with an allowance recorded in a previous period ( 1 ) — — — ( 1 )

1 unchanged sentence

Balance, end of period $ — $ — $ 6 $ 1 $ 7

Six Months Ended June 30, 2020

Nine Months Ended September 30, 2020

Balance, beginning of period $ 3 $ — $ 1 $ — $ 4

Allowance on securities where credit losses were not previously recorded 3 1 1 — 5

Reductions for securities sold ( 1 ) — — — ( 1 )

Change in allowance on securities with an allowance recorded in a previous period — — — — —

2 unchanged sentences

_______________

(1) The Company did no t record any write-offs during the six months ended June 30, 2021.

The Company recorded total write-offs of $ 13 million during the six months ended June 30, 2020.

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

Investments (continued)

(1) The Company did no t record any write-offs during the nine months ended September 30, 2021.

The Company recorded total write-offs of $ 13 million during the nine months ended September 30, 2020.

Mortgage Loans

1 unchanged sentence

Mortgage loans are summarized as follows at:

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Total Carrying

7 unchanged sentences

_______________

(1) Purchases of mortgage loans from third parties were $ 621 million and $ 799 million for the three months and six months ended June 30, 2021, respectively, and $ 331 million and $ 488 million for the three months and six months ended June 30, 2020, respectively, and were primarily comprised of residential mortgage loans.

(1) Purchases of mortgage loans from third parties were $ 698 million and $ 1.5 billion for the three months and nine months ended September 30, 2021, respectively, and $ 47 million and $ 535 million for the three months and nine months ended September 30, 2020, respectively, and were primarily comprised of residential mortgage loans.

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

Investments (continued)

Allowance for Credit Losses for Mortgage Loans

5 unchanged sentences

For mortgage loans that are granted payment deferrals due to the impact of the ongoing worldwide pandemic sparked by the novel coronavirus (“COVID-19 pandemic”), interest continues to be accrued during the deferral period if the loan was less than 30 days past due at December 31, 2019 and performing at the onset of the pandemic.

Accrued interest on COVID-19 pandemic impacted loans was not significant at both June 30, 2021 and December 31, 2020.

The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $ 88 million and $ 89 million at June 30, 2021 and December 31, 2020, respectively.

Accrued interest on COVID-19 pandemic impacted loans was not significant at both September 30, 2021 and December 31, 2020.

The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $ 91 million and $ 89 million at September 30, 2021 and December 31, 2020, respectively.

The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast.

7 unchanged sentences

These situations include collateral dependent loans, expected troubled debt restructurings (“TDR”), foreclosure probable loans, and loans with dissimilar risk characteristics.

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

Investments (continued)

Mortgage loans are also evaluated to determine if they qualify as PCD assets.

7 unchanged sentences

Any subsequent PCD mortgage loan allowance for credit losses is evaluated in a manner similar to the process described above for each of the three portfolio segments.

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

Investments (continued)

Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment

2 unchanged sentences

(In millions)

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

Balance, beginning of period $ 44 $ 15 $ 35 $ 94

Current period provision 6 ( 2 ) — 4

PCD credit allowance — — 2 2

Balance, end of period $ 50 $ 13 $ 37 $ 100

Six Months Ended June 30, 2020

Nine Months Ended September 30, 2020

Balance, beginning of period $ 27 $ 17 $ 22 $ 66

3 unchanged sentences

Purchases of PCD mortgage loans are summarized as follows:

Six Months Ended June 30,

Nine Months Ended September 30,

(In millions)

10 unchanged sentences

(In millions)

June 30, 2021

September 30, 2021

Commercial mortgage loans

45 unchanged sentences

The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at:

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Amortized Cost % of

10 unchanged sentences

Past Due Mortgage Loans by Portfolio Segment

The Company has a high-quality, well-performing mortgage loan portfolio, with over 99 % of all mortgage loans classified as performing at both June 30, 2021 and December 31, 2020.

The Company has a high-quality, well-performing mortgage loan portfolio, with over 99 % of all mortgage loans classified as performing at both September 30, 2021 and December 31, 2020.

Delinquency is defined consistent with industry practice, when mortgage loans are past due as follows:

2 unchanged sentences

To the extent a payment deferral is agreed to with a borrower, in response to the COVID-19 pandemic, the past due status of the impacted loans during the forbearance period is locked-in as of March 1, 2020, which reflects the date on which the COVID-19 pandemic began to affect the borrower’s ability to make payments.

At June 30, 2021 and December 31, 2020, $ 33 million and $ 38 million, respectively, of the COVID-19 pandemic modified loans were classified as delinquent.

At September 30, 2021 and December 31, 2020, $ 30 million and $ 38 million, respectively, of the COVID-19 pandemic modified loans were classified as delinquent.

The aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at:

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Commercial Agricultural Residential Total Commercial Agricultural Residential Total

13 unchanged sentences

A COVID-19 pandemic modified loan is only reported as a nonaccrual asset in the event a borrower declares bankruptcy, the borrower experiences significant credit deterioration such that the Company does not expect to collect all principal and interest due, or the loan was 90 days past due at the onset of the pandemic.

At June 30, 2021 and December 31, 2020, $ 33 million and $ 38 million, respectively, of the COVID-19 pandemic modified loans were in nonaccrual status.

At September 30, 2021 and December 31, 2020, $ 30 million and $ 38 million, respectively, of the COVID-19 pandemic modified loans were in nonaccrual status.

The amortized cost of mortgage loans in a nonaccrual status by portfolio segment were as follows at:

1 unchanged sentence

(In millions)

June 30, 2021

September 30, 2021

$ — $ — $ 57 $ 57

2 unchanged sentences

_______________

(1) The Company had $ 9 million and $ 7 million of residential mortgage loans in nonaccrual status for which there was no related allowance for credit losses at June 30, 2021 and December 31, 2020, respectively.

Current period investment income on mortgage loans in nonaccrual status was less than $ 1 million for both the six months ended June 30, 2021 and 2020.

(1) The Company had $ 7 million of residential mortgage loans in nonaccrual status for which there was no related allowance for credit losses at both September 30, 2021 and December 31, 2020.

Current period investment income on mortgage loans in nonaccrual status was $ 1 million for both the nine months ended September 30, 2021 and 2020.

Modified Mortgage Loans by Portfolio Segment

3 unchanged sentences

Generally, the types of concessions may include reducing the amount of debt owed, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest.

The Company did not have a significant amount of mortgage loans modified in a troubled debt restructuring during both the six months ended June 30, 2021 and 2020.

The Company did not have a significant amount of mortgage loans modified in a TDR during both the nine months ended September 30, 2021 and 2020.

Short-term modifications made on a good faith basis to borrowers who were not more than 30 days past due at December 31, 2019 and in response to the COVID-19 pandemic are not considered TDRs.

4 unchanged sentences

Leveraged Leases

The carrying value of leveraged leases was $ 49 million and $ 50 million at June 30, 2021 and December 31, 2020, respectively.

The allowance for credit losses was $ 13 million at both June 30, 2021 and December 31, 2020.

The carrying value of leveraged leases was $ 50 million at both September 30, 2021 and December 31, 2020.

The allowance for credit losses was $ 13 million at both September 30, 2021 and December 31, 2020.

Rental receivables are generally due in periodic installments.

2 unchanged sentences

Nonperforming rental receivables are generally defined as those that are 90 days or more past due.

At both June 30, 2021 and December 31, 2020, all leveraged leases were performing.

At both September 30, 2021 and December 31, 2020, all leveraged leases were performing.

Net Unrealized Investment Gains (Losses)

4 unchanged sentences

The components of net unrealized investment gains (losses), included in AOCI, were as follows at:

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

(In millions)

10 unchanged sentences

The changes in net unrealized investment gains (losses) were as follows:

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

(In millions)

5 unchanged sentences

Deferred income tax benefit (expense) 379

Balance at June 30, 2021 $ 4,648

Balance at September 30, 2021 $ 4,333

Change in net unrealized investment gains (losses) $ ( 1,428 )

1 unchanged sentence

There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S.

government and its agencies, at both June 30, 2021 and December 31, 2020.

government and its agencies, at both September 30, 2021 and December 31, 2020.

Securities Lending

Elements of the securities lending program are presented below at:

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

(In millions)

3 unchanged sentences

Cash collateral received from counterparties (2) $ 4,539 $ 3,674

Securities collateral received from counterparties (3) $ 7 $ —

Reinvestment portfolio — estimated fair value $ 4,677 $ 3,830

5 unchanged sentences

Investments (continued)

(3) Securities collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reported on the consolidated financial statements.

The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at:

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Open (1) 1 Month or Less 1 to 6 Months Total Open (1) 1 Month or Less 1 to 6 Months Total

6 unchanged sentences

If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized in normal market conditions, or both.

The estimated fair value of the securities on loan related to the cash collateral on open at June 30, 2021 was $ 1.2 billion, primarily comprised of U.S.

The estimated fair value of the securities on loan related to the cash collateral on open at September 30, 2021 was $ 1.6 billion, primarily comprised of U.S.

government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement.

1 unchanged sentence

government and agency securities, non-agency RMBS and U.S.

and foreign corporate securities) with 61 % invested in agency RMBS, cash and cash equivalents and U.S.

government and agency securities at June 30, 2021.

and foreign corporate securities) with 57 % invested in agency RMBS, U.S.

government and agency securities and cash and cash equivalents at September 30, 2021.

If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company.

1 unchanged sentence

Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at:

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

(In millions)

4 unchanged sentences

_______________

(1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $ 112 million and $ 60 million of the assets on deposit represents restricted cash and cash equivalents at June 30, 2021 and December 31, 2020, respectively.

(2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $ 120 million and $ 101 million of the assets held in trust balance represents restricted cash and cash equivalents at June 30, 2021 and December 31, 2020, respectively.

(1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $ 50 million and $ 60 million of the assets on deposit represents restricted cash and cash equivalents at September 30, 2021 and December 31, 2020, respectively.

(2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $ 121 million and $ 101 million of the assets held in trust balance represents restricted cash and cash equivalents at September 30, 2021 and December 31, 2020, respectively.

(3) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report) and derivative transactions (see Note 5).

See “— Securities Lending” for information regarding securities on loan.

In addition, the Company’s investment in FHLB common stock, which is considered restricted until redeemed by the issuer, was $ 63 million and $ 39 million at redemption value at June 30, 2021 and December 31, 2020, respectively.

In addition, the Company’s investment in FHLB common stock, which is considered restricted until redeemed by the issuer, was $ 59 million and $ 39 million at redemption value at September 30, 2021 and December 31, 2020, respectively.

Brighthouse Financial, Inc.

7 unchanged sentences

In addition, the evaluation of whether a legal entity is a VIE and if the Company is a primary beneficiary includes a review of the capital structure of the VIE, the related contractual relationships and terms, the nature of the operations and purpose of the VIE, the nature of the VIE interests issued and the Company’s involvement with the entity.

There were no material VIEs for which the Company has concluded that it is the primary beneficiary at either June 30, 2021 or December 31, 2020.

There were no material VIEs for which the Company has concluded that it is the primary beneficiary at either September 30, 2021 or December 31, 2020.

The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at:

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Amount Maximum

28 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

12 unchanged sentences

_______________

(1) Includes net investment income pertaining to other limited partnership interests of $ 339 million and $ 670 million for the three months and six months ended June 30, 2021, respectively, and ($ 192 ) million and ($ 119 ) million for the three months and six months ended June 30, 2020, respectively.

(1) Includes net investment income pertaining to other limited partnerships of $ 378 million and $ 1.0 billion for the three months and nine months ended September 30, 2021, respectively, and $ 153 million and $ 34 million for the three months and nine months ended September 30, 2020, respectively.

Net Investment Gains (Losses)

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

13 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

24 unchanged sentences

The primary underlying risk exposure, gross notional amount and estimated fair value of derivatives held were as follows at:

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Primary Underlying Risk Exposure Gross

21 unchanged sentences

Equity total return swaps Equity market 31,782 421 324 15,056 143 822

Hybrid options Equity market 900 16 — 600 — —

Total non-designated or non-qualifying derivatives 93,017 2,349 1,700 89,515 3,382 1,912

6 unchanged sentences

Total $ 96,225 $ 2,804 $ 9,531 $ 92,617 $ 3,865 $ 9,181

Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both June 30, 2021 and December 31, 2020.

Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both September 30, 2021 and December 31, 2020.

The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and generally do not qualify for hedge accounting because they do not meet the criteria required under portfolio hedging rules;

(ii) derivatives that economically hedge insurance liabilities and generally do not qualify for hedge accounting because they do not meet the criteria of being “highly effective” as outlined in ASC 815;

(iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income;

6 unchanged sentences

(In millions)

Three Months Ended June 30, 2021

Three Months Ended September 30, 2021

Derivatives Designated as Hedging Instruments:

11 unchanged sentences

Total $ 57 $ ( 1 ) $ 10 $ 104

Three Months Ended June 30, 2020

Three Months Ended September 30, 2020

Derivatives Designated as Hedging Instruments:

16 unchanged sentences

(In millions)

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

Derivatives Designated as Hedging Instruments:

11 unchanged sentences

Total $ ( 2,129 ) $ ( 3 ) $ 28 $ 150

Six Months Ended June 30, 2020

Nine Months Ended September 30, 2020

Derivatives Designated as Hedging Instruments:

11 unchanged sentences

Total $ 2,410 $ ( 18 ) $ 31 $ 235

At June 30, 2021 and December 31, 2020, the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions was two years and three years, respectively.

At June 30, 2021 and December 31, 2020, the balance in AOCI associated with cash flow hedges was $ 208 million and $ 173 million, respectively.

At September 30, 2021 and December 31, 2020, the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions was two years and three years, respectively.

At September 30, 2021 and December 31, 2020, the balance in AOCI associated with cash flow hedges was $ 311 million and $ 173 million, respectively.

Credit Derivatives

5 unchanged sentences

The estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps were as follows at:

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Rating Agency Designation of Referenced Credit Obligations (1) Estimated

32 unchanged sentences

(In millions)

June 30, 2021

September 30, 2021

Derivative assets $ 2,630 $ ( 1,356 ) $ ( 875 ) $ 399 $ ( 390 ) $ 9

14 unchanged sentences

The aggregate estimated fair values of derivatives in a net liability position containing such credit-contingent provisions and the aggregate estimated fair value of assets posted as collateral for such instruments were as follows at:

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

(In millions)

12 unchanged sentences

Investments that do not have a readily determinable fair value and are measured at net asset value (or equivalent) as a practical expedient to estimated fair value are excluded from the fair value hierarchy.

June 30, 2021

September 30, 2021

Fair Value Hierarchy Total Estimated

68 unchanged sentences

The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets.

(2) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the consolidated balance sheets.

(2) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables on the consolidated balance sheets.

Embedded derivatives within liability host contracts are presented within policyholder account balances on the consolidated balance sheets.

18 unchanged sentences

Price adjustments are applied if prices or quotes received from independent pricing services or brokers are not considered reflective of market activity or representative of estimated fair value.

The Company did not have significant price adjustments during the six months ended June 30, 2021.

The Company did not have significant price adjustments during the nine months ended September 30, 2021.

Determination of Fair Value

49 unchanged sentences

These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets, with changes in estimated fair value reported in net derivative gains (losses).

The Company determines the fair value of these embedded derivatives by estimating the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations of policyholder behavior.

The Company determines the fair value of these embedded derivatives by estimating the present value of projected future benefits minus the present value of projected future fees using actuarial and capital markets assumptions including expectations of policyholder behavior.

The calculation is based on in-force business and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates.

The percentage of fees included in the initial fair value measurement is not updated in subsequent periods.

Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly-traded instruments to the extent that prices for such instruments are observable.

Capital markets assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly-traded instruments to the extent that prices for such instruments are observable.

Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities.

Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience.

The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs.

The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital markets inputs.

The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for BHF’s debt.

These observable spreads are then adjusted to reflect the priority of these liabilities and claims-paying ability of the issuing insurance subsidiaries as compared to BHF’s overall financial strength.

Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders.

Risk margins are established to capture the non-capital markets risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders.

The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees.

14 unchanged sentences

Certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows at:

June 30, 2021 December 31, 2020 Impact of

September 30, 2021 December 31, 2020 Impact of

Increase in Input

50 unchanged sentences

(In millions)

Three Months Ended June 30, 2021

Three Months Ended September 30, 2021

Balance, beginning of period

11 unchanged sentences

Balance, end of period $ 1,293 $ 266 $ — $ — $ 3 $ — $ 39 $ ( 7,596 ) $ —

Three Months Ended June 30, 2020

Three Months Ended September 30, 2020

Balance, beginning of period

11 unchanged sentences

Balance, end of period $ 1,078 $ 81 $ — $ — $ 3 $ 10 $ 15 $ ( 6,128 ) $ 3

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2021 (9)

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2021 (9)

$ — $ — $ — $ — $ — $ — $ ( 5 ) $ 258 $ —

Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2021 (9)

Changes in unrealized gains (losses) included in OCI for the instruments still held at September 30, 2021 (9)

$ ( 8 ) $ — $ — $ — $ — $ — $ 3 $ — $ —

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2020 (9)

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2020 (9)

$ — $ — $ — $ — $ — $ — $ 5 $ ( 668 ) $ —

Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2020 (9)

Changes in unrealized gains (losses) included in OCI for the instruments still held at September 30, 2020 (9)

$ 8 $ 1 $ — $ — $ — $ — $ ( 10 ) $ — $ —

13 unchanged sentences

(In millions)

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

Balance, beginning of period

11 unchanged sentences

Balance, end of period $ 1,293 $ 266 $ — $ — $ 3 $ — $ 39 $ ( 7,596 ) $ —

Six Months Ended June 30, 2020

Nine Months Ended September 30, 2020

Balance, beginning of period

11 unchanged sentences

Balance, end of period $ 1,078 $ 81 $ — $ — $ 3 $ 10 $ 15 $ ( 6,128 ) $ 3

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2021 (9)

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2021 (9)

$ — $ — $ — $ — $ — $ — $ ( 3 ) $ ( 302 ) $ —

Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2021 (9)

Changes in unrealized gains (losses) included in OCI for the instruments still held at September 30, 2021 (9)

$ ( 9 ) $ 1 $ — $ — $ — $ — $ 12 $ — $ —

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2020 (9)

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2020 (9)

$ ( 1 ) $ — $ — $ — $ — $ — $ ( 11 ) $ ( 1,687 ) $ —

Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2020 (9)

Changes in unrealized gains (losses) included in OCI for the instruments still held at September 30, 2020 (9)

$ 12 $ 2 $ — $ — $ — $ — $ 10 $ — $ —

28 unchanged sentences

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:

June 30, 2021

September 30, 2021

Fair Value Hierarchy

25 unchanged sentences

Preferred Stock

Preferred stock shares authorized, issued and outstanding were as follows at both June 30, 2021 and December 31, 2020:

Preferred stock shares authorized, issued and outstanding were as follows at both September 30, 2021 and December 31, 2020:

Shares Authorized Shares Issued Shares Outstanding

7 unchanged sentences

Total 100,000,000 56,100 56,100

The declaration, record and payment dates, as well as per share and aggregate dividend amounts for BHF’s preferred stock by series for the six months ended June 30, 2021 and 2020 were as follows:

The declaration, record and payment dates, as well as per share and aggregate dividend amounts for BHF’s preferred stock by series for the nine months ended September 30, 2021 and 2020 were as follows:

Series A Series B Series C

1 unchanged sentence

(In millions, except per share data)

August 16, 2021 September 10, 2021 September 27, 2021 $ 412.50 $ 7 $ 421.88 $ 7 $ 335.94 $ 8

May 17, 2021 June 10, 2021 June 25, 2021 412.50 7 421.88 7 335.94 7

1 unchanged sentence

$ 1,237.50 $ 21 $ 1,265.64 $ 21 $ 1,138.46 $ 26

August 17, 2020 September 10, 2020 September 25, 2020 $ 412.50 $ 7 $ 595.31 $ 10 $ — $ —

May 15, 2020 June 10, 2020 June 25, 2020 412.50 7 — — — —

3 unchanged sentences

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

Equity (continued)

Common Stock Repurchase Program

On February 10, 2021, BHF authorized the repurchase of up to $ 200 million of its common stock, which is in addition to the $ 1.1 billion aggregate stock repurchase authorizations announced in February 2020, May 2019 and August 2018.

Repurchases under this authorization may be made through open market purchases, including pursuant to 10b5-1 plans or pursuant to accelerated stock repurchase plans, or through privately negotiated transactions, from time to time at management’s discretion in accordance with applicable legal requirements.

See Note 11 for information relating to the authorization of share repurchases subsequent to June 30, 2021.

During the six months ended June 30, 2021 and 2020, BHF repurchased 4,312,267 and 13,250,927 shares, respectively, of its common stock through open market purchases pursuant to 10b5-1 plans for $ 192 million and $ 322 million, respectively.

At June 30, 2021, BHF had $ 87 million remaining under its common stock repurchase program.

On August 2, 2021, BHF authorized the repurchase of up to $ 1.0 billion of its common stock, which is in addition to the $ 200 million repurchase announced on February 10, 2021.

Repurchases under the August 2, 2021 authorization may be made through open market purchases, including pursuant to 10b5-1 plans or pursuant to accelerated stock repurchase plans, or through privately negotiated transactions, from time to time at management’s discretion in accordance with applicable legal requirements.

During the nine months ended September 30, 2021 and 2020, BHF repurchased 7,603,089 and 15,119,010 shares, respectively, of its common stock through open market purchases pursuant to 10b5-1 plans for $ 341 million and $ 376 million, respectively.

At September 30, 2021, BHF had $ 939 million remaining under its common stock repurchase program.

Dividend Restrictions

During the third quarter of 2021, with the approval of the Delaware Department of Insurance, Brighthouse Reinsurance Company of Delaware paid a $ 600 million extraordinary dividend to Brighthouse Life Insurance Company in the form of the settlement of affiliated reinsurance balances of $ 400 million, invested assets of $ 197 million and cash of $ 3 million.

Accumulated Other Comprehensive Income (Loss)

Information regarding changes in the balances of each component of AOCI was as follows:

Three Months Ended June 30, 2021

Three Months Ended September 30, 2021

Investment Gains

5 unchanged sentences

(In millions)

Balance at March 31, 2021 $ 3,387 $ 55 $ ( 14 ) $ ( 39 ) $ 3,389

Balance at June 30, 2021 $ 4,506 $ 142 $ ( 13 ) $ ( 39 ) $ 4,596

OCI before reclassifications ( 499 ) 104 10 — ( 385 )

4 unchanged sentences

Amounts reclassified from AOCI, net of income tax ( 1 ) ( 1 ) — — ( 2 )

Balance at June 30, 2021

Balance at September 30, 2021

$ 4,110 $ 223 $ ( 5 ) $ ( 38 ) $ 4,290

Three Months Ended June 30, 2020

Three Months Ended September 30, 2020

Investment Gains

5 unchanged sentences

(In millions)

Balance at March 31, 2020 $ 2,083 $ 612 $ ( 19 ) $ ( 29 ) $ 2,647

Balance at June 30, 2020 $ 4,517 $ 500 $ ( 24 ) $ ( 28 ) $ 4,965

OCI before reclassifications 707 ( 185 ) 9 ( 2 ) 529

4 unchanged sentences

Amounts reclassified from AOCI, net of income tax 7 ( 9 ) — — ( 2 )

Balance at June 30, 2020 $ 4,517 $ 500 $ ( 24 ) $ ( 28 ) $ 4,965

Balance at September 30, 2020

$ 5,082 $ 345 $ ( 16 ) $ ( 30 ) $ 5,381

Brighthouse Financial, Inc.

1 unchanged sentence

Equity (continued)

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

Investment Gains

13 unchanged sentences

Amounts reclassified from AOCI, net of income tax 14 ( 10 ) — ( 1 ) 3

Balance at June 30, 2021

Balance at September 30, 2021

$ 4,110 $ 223 $ ( 5 ) $ ( 38 ) $ 4,290

Six Months Ended June 30, 2020

Nine Months Ended September 30, 2020

Investment Gains

13 unchanged sentences

Amounts reclassified from AOCI, net of income tax 16 ( 13 ) — — 3

Balance at June 30, 2020

Balance at September 30, 2020

$ 5,082 $ 345 $ ( 16 ) $ ( 30 ) $ 5,381

8 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

27 unchanged sentences

The passage of time reflects the satisfaction of the Company’s performance obligations to the Funds and is used to recognize revenue associated with 12b-1 fees.

Other revenues consisted primarily of 12b-1 fees of $ 91 million and $ 179 million for the three months and six months ended June 30, 2021, respectively, and $ 76 million and $ 157 million for the three months and six months ended June 30, 2020, respectively, of which substantially all were reported in the Annuities segment.

Other revenues consisted primarily of 12b-1 fees of $ 91 million and $ 270 million for the three months and nine months ended September 30, 2021, respectively, and $ 83 million and $ 240 million for the three months and nine months ended September 30, 2020, respectively, of which substantially all were reported in the Annuities segment.

Brighthouse Financial, Inc.

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

13 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

7 unchanged sentences

Diluted $ 4.34 $ ( 32.49 ) $ ( 2.80 ) $ ( 0.61 )

For both the six months ended June 30, 2021 and the three months ended June 30, 2020, basic loss per common share equaled diluted loss per common share.

For the three months ended September 30, 2021, weighted average shares used for calculating diluted earnings per common share excludes 187,371 of out-of-the-money stock options, as the inclusion of such shares would be antidilutive to the earnings per common share calculation due to the average share price for the three months ended September 30, 2021.

For the nine months ended September 30, 2021 and the three months and nine months ended September 30, 2020, basic loss per common share equaled diluted loss per common share.

The diluted shares were not utilized in the per share calculation for this period as the inclusion of such shares would have an antidilutive effect.

For both the three months ended June 30, 2021 and the six months ended June 30, 2020, weighted average shares used for calculating diluted earnings per common share excludes 187,371 of out-of-the-money stock options, as the inclusion of these shares would be antidilutive to the earnings per common share calculation due to the average share price for the three months ended June 30, 2021 and the six months ended June 30, 2020.

Brighthouse Financial, Inc.

13 unchanged sentences

The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated.

It is possible that some matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at June 30, 2021.

It is possible that some matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at September 30, 2021.

Matters as to Which an Estimate Can Be Made

1 unchanged sentence

For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made.

In addition to amounts accrued for probable and reasonably estimable losses, as of June 30, 2021, the Company estimates the aggregate range of reasonably possible losses to be up to approximately $ 10 million .

In addition to amounts accrued for probable and reasonably estimable losses, as of September 30, 2021, the Company estimates the aggregate range of reasonably possible losses to be up to approximately $ 10 million.

Matters as to Which an Estimate Cannot Be Made

46 unchanged sentences

Contingencies, Commitments and Guarantees (continued)

As of June 30, 2021, the Company estimates the amount of reasonably possible losses in excess of the amounts accrued for certain non-litigation loss contingencies to be up to approximately $ 125 million , which are primarily associated with reinsurance-related matters.

As of September 30, 2021, the Company estimates the range of reasonably possible losses in excess of the amounts accrued for certain non-litigation loss contingencies to be from zero up to approximately $ 250 million, which are associated with reinsurance-related matters.

For certain other reinsurance-related matters, the Company is not currently able to estimate the reasonably possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of such loss.

2 unchanged sentences

The Company commits to lend funds under mortgage loan commitments.

The amounts of these mortgage loan commitments were $ 646 million and $ 210 million at June 30, 2021 and December 31, 2020, respectively.

The amounts of these mortgage loan commitments were $ 734 million and $ 210 million at September 30, 2021 and December 31, 2020, respectively.

Commitments to Fund Partnership Investments, Bank Credit Facilities and Private Corporate Bond Investments

The Company commits to fund partnership investments and to lend funds under bank credit facilities and private corporate bond investments.

The amounts of these unfunded commitments were $ 2.2 billion and $ 1.7 billion at June 30, 2021 and December 31, 2020, respectively.

The amounts of these unfunded commitments were $ 2.3 billion and $ 1.7 billion at September 30, 2021 and December 31, 2020, respectively.

In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future.

8 unchanged sentences

Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future.

The Company’s recorded liabilities were $ 1 million at both June 30, 2021 and December 31, 2020 for indemnities, guarantees and commitments.

Subsequent Events

Common Stock Repurchase Authorization

On August 2, 2021, the Company authorized the repurchase of up to an additional $ 1.0 billion of common stock.

No common stock repurchases have been made under the August 2, 2021 authorization as of August 6, 2021.

Future repurchases may be made through open market purchases, including pursuant to 10b5-1 plans or pursuant to accelerated stock repurchase plans, or through privately negotiated transactions, from time to time at management’s discretion in accordance with applicable legal requirements.

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (Continued)

Subsequent Events (continued)

Dividend Transaction

On July 26, 2021, Brighthouse Reinsurance Company of Delaware received approval from the Delaware Department of Insurance for the payment of a $ 600 million extraordinary dividend to Brighthouse Life Insurance Company.

Such dividend has not been paid as of August 6, 2021 .

The Company’s recorded liabilities were $ 1 million at both September 30, 2021 and December 31, 2020 for indemnities, guarantees and commitments.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements