What changed in this filing

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Item 1. Financial Statements

2024-11-08 compared with 2024-08-08 · 205 added, 156 removed, 1797 unchanged (17% of the section changed)

2 unchanged sentences

Interim Condensed Consolidated Balance Sheets

June 30, 2024 (Unaudited) and December 31, 2023

September 30, 2024 (Unaudited) and December 31, 2023

(In millions, except share and per share data)

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

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

52 unchanged sentences

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

For the Three Months and Six Months Ended June 30, 2024 and 2023 (Unaudited)

For the Three Months and Nine Months Ended September 30, 2024 and 2023 (Unaudited)

(In millions, except per share data)

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2024 2023 2024 2023

31 unchanged sentences

Interim Condensed Consolidated Statements of Equity

For the Three Months and Six Months Ended June 30, 2024 and 2023 (Unaudited)

For the Three Months and Nine Months Ended September 30, 2024 and 2023 (Unaudited)

(In millions)

15 unchanged sentences

( 173 ) ( 173 ) ( 173 )

Balance at March 31, 2024 — 1 13,989 ( 2,000 ) ( 2,382 ) ( 5,413 ) 4,195 65 4,260

Balance at June 30, 2024 — 1 13,972 ( 1,966 ) ( 2,447 ) ( 5,419 ) 4,141 65 4,206

Treasury stock acquired in connection with share repurchases

5 unchanged sentences

Change in noncontrolling interests

— ( 2 ) ( 2 )

Net income (loss)

176 176 2 178

Other comprehensive income (loss), net of income tax

1,292 1,292 1,292

Balance at June 30, 2024 $ — $ 1 $ 13,972 $ ( 1,966 ) $ ( 2,447 ) $ ( 5,419 ) $ 4,141 $ 65 $ 4,206

Balance at September 30, 2024

$ — $ 1 $ 13,953 $ ( 1,790 ) $ ( 2,512 ) $ ( 4,127 ) $ 5,525 $ 65 $ 5,590

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

8 unchanged sentences

Other comprehensive income (loss), net of income tax 225 225 225

Balance at March 31, 2023

Balance at June 30, 2023

— 1 14,039 ( 1,069 ) ( 2,183 ) ( 5,881 ) 4,907 65 4,972

5 unchanged sentences

Other comprehensive income (loss), net of income tax ( 1,235 ) ( 1,235 ) ( 1,235 )

Balance at June 30, 2023 $ — $ 1 $ 14,039 $ ( 1,069 ) $ ( 2,183 ) $ ( 5,881 ) $ 4,907 $ 65 $ 4,972

Balance at September 30, 2023

$ — $ 1 $ 14,022 $ ( 590 ) $ ( 2,248 ) $ ( 7,116 ) $ 4,069 $ 65 $ 4,134

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, 2024 and 2023 (Unaudited)

For the Nine Months Ended September 30, 2024 and 2023 (Unaudited)

(In millions)

Six Months Ended

Nine Months Ended

September 30,

Net cash provided by (used in) operating activities $ ( 172 ) $ ( 289 )

15 unchanged sentences

Net change in other invested assets ( 295 ) ( 117 )

Other, net ( 4 ) —

Net cash provided by (used in) investing activities

26 unchanged sentences

through multiple independent distribution channels and marketing arrangements with a diverse network of distribution partners.

The Company is organized into three segments:

The Company is organized into the following segments:

In addition, the Company reports certain of its results of operations in Corporate & Other.

18 unchanged sentences

The Company considers the applicability and impact of all ASUs.

There were no significant ASUs adopted during the period ended June 30, 2024.

There were no significant ASUs adopted during the period ended September 30, 2024.

Future Adoption of New Accounting Pronouncements

14 unchanged sentences

Segment Information

The Company is organized into three segments:

The Company is organized into the following segments:

In addition, the Company reports certain of its results of operations in Corporate & Other.

30 unchanged sentences

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

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Annuities Life Run-off Corporate & Other Total

21 unchanged sentences

Segment Information (continued)

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Annuities Life Run-off Corporate & Other Total

18 unchanged sentences

Interest expense $ — $ — $ — $ 38

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Annuities Life Run-off Corporate & Other Total

21 unchanged sentences

Segment Information (continued)

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Annuities Life Run-off Corporate & Other Total

20 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

7 unchanged sentences

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

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

(In millions)

9 unchanged sentences

Information regarding liability for future policy benefits (“LFPB”) for non-participating traditional and limited-payment contracts was as follows:

Six Months Ended June 30,

Nine Months Ended September 30,

Term and Whole Life Insurance Income Annuities Structured Settlement and Pension Risk Transfer Annuities Term and Whole Life Insurance Income Annuities Structured Settlement and Pension Risk Transfer Annuities

4 unchanged sentences

Effect of model refinements 4 — — — — —

Effect of changes in cash flow assumptions 128 — — 215 — —

Effect of actual variances from expected experience 9 — — ( 36 ) — —

10 unchanged sentences

Effect of model refinements 10 — — — — —

Effect of changes in cash flow assumptions 208 ( 23 ) 81 309 — —

Effect of actual variances from expected experience 9 ( 1 ) ( 11 ) ( 41 ) 6 ( 49 )

20 unchanged sentences

Insurance Liabilities (continued)

The measurement of LFPBs can be significantly impacted by changes in assumptions for policyholder behavior.

As part of the 2024 and 2023 annual actuarial reviews (“AAR”), the Company updated assumptions regarding mortality and lapses for term and non-participating whole life insurance.

The impact from changes in assumptions is presented in effect of changes in cash flow assumptions in the table above.

Information regarding the additional insurance liabilities for universal life-type contracts with secondary guarantees was as follows:

Six Months Ended June 30,

Nine Months Ended September 30,

(Dollars in millions)

1 unchanged sentence

Beginning balance before the effect of unrealized gains and losses 7,784 7,175

Effect of changes in cash flow assumptions 895 52

Effect of actual variances from expected experience 102 75

11 unchanged sentences

Gross assessments recognized during period

The measurement of liabilities for secondary guarantees can be significantly impacted by changes in assumptions for policyholder behavior, as well as the expected general account rate of return, which is driven by the Company’s assumption for long-term treasury yields.

The Company’s practice of projecting treasury yields uses a mean reversion approach that assumes that long-term interest rates are less influenced by short-term fluctuations and are only changed when sustained interim deviations are expected.

As part of the 2024 and 2023 AAR, the Company updated assumptions regarding policyholder behavior, including mortality, premium persistency, lapses and withdrawals.

In 2024, the Company also increased the long-term general account earned rate, driven by an increase in the mean reversion rate, from 3.75 % to 4.00 %.

The impact from changes in assumptions, excluding the effects on the ULSG liability for profits followed by losses, is presented in effect of changes in cash flow assumptions in the table above.

Brighthouse Financial, Inc.

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

Insurance Liabilities (continued)

A reconciliation of the net LFPBs for non-participating traditional and limited-payment contracts and the additional insurance liabilities for universal life-type contracts with secondary guarantees reported in the preceding rollforward tables to LFPBs on the consolidated balance sheets was as follows at:

September 30,

(In millions)

9 unchanged sentences

(2) Participating whole life insurance uses an interest assumption based on the non-forfeiture interest rate, ranging from 3.5 % to 4.5 %, and mortality rates guaranteed in calculating the cash surrender values described in such contracts, and also includes a liability for terminal dividends.

Participating whole life insurance represented 3 % of the Company’s life insurance in-force at both June 30, 2024 and 2023, and 41 % of gross traditional life insurance premiums for both the six months ended June 30, 2024 and 2023.

Participating whole life insurance represented 3 % of the Company’s life insurance in-force at both September 30, 2024 and 2023, and 39 % and 40 % of gross traditional life insurance premiums for the nine months ended September 30, 2024 and 2023, respectively.

Brighthouse Financial, Inc.

5 unchanged sentences

(Dollars in millions)

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Balance, beginning of period $ 2,550 $ 4,307 $ 41,627 $ 14,672 $ 5,052 $ 653

8 unchanged sentences

Weighted-average crediting rate (2) 2.89 % 2.02 % 1.31 % 2.86 % 2.48 % 3.10 %

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Balance, beginning of period $ 2,658 $ 4,908 $ 33,897 $ 14,274 $ 5,307 $ 641

12 unchanged sentences

A reconciliation of policyholder account balances reported in the preceding rollforward table to the liability for policyholder account balances on the consolidated balance sheets was as follows at:

September 30,

(In millions)

10 unchanged sentences

(In millions)

June 30, 2024

September 30, 2024

Annuities (1):

36 unchanged sentences

Information regarding MRB assets and liabilities associated with variable annuities was as follows:

Six Months Ended June 30,

Nine Months Ended September 30,

(Dollars in millions)

2 unchanged sentences

Decrements ( 129 ) ( 114 )

Effect of changes in future expected assumptions ( 53 ) 259

Effect of actual different from expected experience 67 178

11 unchanged sentences

_______________

(1) Amounts represent the sum of MRB assets and MRB liabilities presented on the consolidated balance sheets at June 30, 2024 and 2023, with the exception of $ 0 and $ 3 million, respectively, of index-linked annuities not included in this table.

(1) Amounts represent the sum of MRB assets and MRB liabilities presented on the consolidated balance sheets at September 30, 2024 and 2023, with the exception of $ 47 million and ($ 7 ) million, respectively, of index-linked annuities not included in this table.

Market conditions, including, but not limited to, changes in interest rates, equity indices, market volatility and variations in actuarial assumptions, including policyholder behavior, mortality and risk margins related to non-capital markets inputs, as well as changes in nonperformance risk, may result in significant fluctuations in the estimated fair value of the guarantees.

As part of the 2024 AAR, the Company updated assumptions regarding policyholder behavior, mortality and separate account fund allocations.

As part of the 2023 AAR, the Company updated assumptions regarding policyholder behavior, mortality, separate account fund allocations and volatility.

The impact from changes in assumptions is presented in effect of changes in future expected assumptions in the table above.

Brighthouse Financial, Inc.

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

Separate Accounts

1 unchanged sentence

Information regarding separate account liabilities was as follows:

Six Months Ended June 30,

Nine Months Ended September 30,

Variable Annuities Universal Life Insurance Company-Owned Life Insurance Variable Annuities Universal Life Insurance Company-Owned Life Insurance

9 unchanged sentences

Balance, end of period $ 81,217 $ 6,511 $ 2,327 $ 75,072 $ 5,397 $ 2,036

Brighthouse Financial, Inc.

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

Separate Accounts (continued)

A reconciliation of separate account liabilities reported in the preceding rollforward table to the separate account liabilities balance on the consolidated balance sheets was as follows at:

September 30,

(In millions)

4 unchanged sentences

The aggregate estimated fair value of assets, by major investment asset category, supporting separate accounts was as follows at:

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

(In millions)

5 unchanged sentences

Total aggregate estimated fair value of assets $ 90,313 $ 88,271

Brighthouse Financial, Inc.

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

Separate Accounts (continued)

Net Amount at Risk and Cash Surrender Values

2 unchanged sentences

(In millions)

June 30, 2024

September 30, 2024

Account balances reported in the preceding rollforward tables:

4 unchanged sentences

Cash surrender value $ 8,523 $ 84,765 $ 46,076 $ 14,632 $ 4,360 $ 2,769

June 30, 2023

September 30, 2023

Account balances reported in the preceding rollforward tables:

13 unchanged sentences

(In millions)

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Balance, beginning of period $ 2,301 $ 110 $ 1,331 $ 354 $ 360

7 unchanged sentences

Balance, end of period $ 2,447 $ 169 $ 1,429 $ 323 $ 377

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Balance, beginning of period $ 2,508 $ 107 $ 1,213 $ 405 $ 392

9 unchanged sentences

Information regarding deferred sales inducements, included in other assets, was as follows:

Six Months Ended June 30,

Nine Months Ended September 30,

Variable Annuities Fixed Rate Annuities Variable Annuities Fixed Rate Annuities

8 unchanged sentences

Information regarding unearned revenue, included in other policy-related balances, was as follows:

Six Months Ended June 30,

Nine Months Ended September 30,

Universal Life Insurance ULSG Variable Annuities Universal Life Insurance ULSG Variable Annuities

8 unchanged sentences

Fixed maturity securities by sector were as follows at:

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Cost Allowance for Credit Losses Gross Unrealized Estimated

15 unchanged sentences

Total fixed maturity securities $ 87,838 $ 61 $ 1,300 $ 5,779 $ 83,298 $ 87,131 $ 21 $ 1,037 $ 7,156 $ 80,991

The Company held non-income producing fixed maturity securities with an estimated fair value of $ 45 million and $ 52 million at June 30, 2024 and December 31, 2023, respectively.

The Company held non-income producing fixed maturity securities with an estimated fair value of $ 40 million and $ 52 million at September 30, 2024 and December 31, 2023, respectively.

Brighthouse Financial, Inc.

2 unchanged sentences

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, 2024:

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at September 30, 2024:

Year or Less Due After One

14 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, 2024 December 31, 2023

September 30, 2024 December 31, 2023

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 $ 673 million and $ 655 million at June 30, 2024 and December 31, 2023, respectively, and is included in accrued investment income.

The accrued interest receivable on fixed maturity securities totaled $ 717 million and $ 655 million at September 30, 2024 and December 31, 2023, 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 $ 45 million, relating to 27 securities, at June 30, 2024.

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 $ 61 million, relating to 28 securities, at September 30, 2024.

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.

8 unchanged sentences

(In millions)

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Balance, beginning of period $ 15 $ — $ 5 $ 1 $ 21

4 unchanged sentences

Balance, end of period $ 31 $ 21 $ 4 $ 5 $ 61

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Balance, beginning of period $ 1 $ 1 $ 2 $ 3 $ 7

5 unchanged sentences

_______________

(1) The Company recorded total write-offs of $ 1 million and $ 7 million for the six months ended June 30, 2024 and 2023, respectively.

(1) The Company recorded total write-offs of $ 10 million and $ 8 million for the nine months ended September 30, 2024 and 2023, respectively.

Mortgage Loans

1 unchanged sentence

Mortgage loans are summarized as follows at:

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Total Carrying

7 unchanged sentences

_______________

(1) Purchases of mortgage loans from third parties were $ 188 million and $ 349 million for the three months and six months ended June 30, 2024, respectively, and $ 0 and $ 32 million for the three months and six months ended June 30, 2023, respectively, and were primarily comprised of residential mortgage loans.

(1) Purchases of mortgage loans from third parties were $ 314 million and $ 664 million for the three months and nine months ended September 30, 2024, respectively, and $ 224 million and $ 255 million for the three months and nine months ended September 30, 2023, respectively, and were primarily comprised of residential mortgage loans.

Brighthouse Financial, Inc.

7 unchanged sentences

An allowance for credit losses is generally not estimated on an accrued interest receivable, rather when a loan is placed in nonaccrual status the associated accrued interest receivable balance is written off with a corresponding reduction to net investment income.

The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $ 122 million and $ 123 million at June 30, 2024 and December 31, 2023, respectively.

The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $ 128 million and $ 123 million at September 30, 2024 and December 31, 2023, 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.

23 unchanged sentences

(In millions)

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Balance, beginning of period $ 69 $ 19 $ 49 $ 137

2 unchanged sentences

Balance, end of period $ 95 $ 30 $ 42 $ 167

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Balance, beginning of period $ 49 $ 15 $ 55 $ 119

6 unchanged sentences

(In millions)

June 30, 2024

September 30, 2024

Commercial mortgage loans

9 unchanged sentences

65% to 75% 6 1 130 107 12 17 273

76% to 80% — — — — 1 3 4

Greater than 80% — — — — — 16 16

Total agricultural mortgage loans 247 222 684 1,208 412 1,748 4,521

34 unchanged sentences

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

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Amortized Cost % of

13 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, 2024 and December 31, 2023.

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, 2024 and December 31, 2023.

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

2 unchanged sentences

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

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Commercial Agricultural Residential Total Commercial Agricultural Residential Total

9 unchanged sentences

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

Commercial Agricultural Residential (1) Total

Commercial Agricultural Residential

(In millions)

June 30, 2024

September 30, 2024

$ 119 $ 16 $ 101 $ 236

1 unchanged sentence

$ 17 $ — $ 90 $ 107

_______________

(1) The Company had $ 30 million of mortgage loans in nonaccrual status for which there was no related allowance for credit losses at June 30, 2024.

The Company had no mortgage loans in nonaccrual status for which there was no related allowance for credit losses at December 31, 2023.

Current period investment income on mortgage loans in nonaccrual status was $ 1 million and less than $ 1 million for the six months ended June 30, 2024 and 2023, respectively.

The Company had no mortgage loans in nonaccrual status for which there was no related allowance for credit losses at both September 30, 2024 and December 31, 2023.

Current period investment income on mortgage loans in nonaccrual status was $ 3 million and $ 1 million for the nine months ended September 30, 2024 and 2023, respectively.

Modified Mortgage Loans by Portfolio Segment

1 unchanged sentence

Generally, the types of concessions may include interest rate reduction, term extension, principal forgiveness, or a combination of all three.

The Company did not have a significant amount of mortgage loans modified during both the six months ended June 30, 2024 and 2023.

The Company did not have a significant amount of mortgage loans modified during both the nine months ended September 30, 2024 and 2023.

Other Invested Assets

1 unchanged sentence

See Note 8 for information about freestanding derivatives with positive estimated fair values.

Other invested assets also includes the Company’s investment in company-owned life insurance, Federal Home Loan Bank (“FHLB”) stock, tax credit and renewable energy partnerships and leveraged leases.

Net Unrealized Investment Gains (Losses)

Unrealized investment gains (losses) on fixed maturity securities, and the effect on future policy benefits that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in accumulated other comprehensive income (loss) (“AOCI”).

Other invested assets also includes the Company’s investment in company-owned life insurance, Federal Home Loan Bank (“FHLB”) stock, leveraged leases and tax credit and renewable energy partnerships.

Brighthouse Financial, Inc.

1 unchanged sentence

Investments (continued)

Net Unrealized Investment Gains (Losses)

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

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

(In millions)

8 unchanged sentences

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

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

(In millions)

4 unchanged sentences

Deferred income tax benefit (expense) ( 310 )

Balance at June 30, 2024 $ ( 4,895 )

Balance at September 30, 2024 $ ( 2,874 )

Change in net unrealized investment gains (losses) $ 1,166

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, 2024 and December 31, 2023.

government and its agencies, at both September 30, 2024 and December 31, 2023.

Securities Lending

Elements of the securities lending program are presented below at:

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

(In millions)

11 unchanged sentences

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

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

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

8 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, 2024 was $ 606 million, primarily comprised of U.S.

The estimated fair value of the securities on loan related to the cash collateral on open at September 30, 2024 was $ 624 million, 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.

2 unchanged sentences

government and agency securities, non-agency RMBS and CMBS) with 52 % invested in agency RMBS, U.S.

government and agency securities and cash and cash equivalents at June 30, 2024.

government and agency securities and cash and cash equivalents at September 30, 2024.

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, 2024 December 31, 2023

September 30, 2024 December 31, 2023

(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 $ 50 million and $ 102 million of the assets on deposit represents restricted cash and cash equivalents at June 30, 2024 and December 31, 2023, respectively.

(2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $ 199 million and $ 120 million of the assets held in trust balance represents restricted cash and cash equivalents at June 30, 2024 and December 31, 2023, respectively.

(1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $ 87 million and $ 102 million of the assets on deposit represents restricted cash and cash equivalents at September 30, 2024 and December 31, 2023, respectively.

(2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $ 299 million and $ 120 million of the assets held in trust balance represents restricted cash and cash equivalents at September 30, 2024 and December 31, 2023, respectively.

(3) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4 of the Notes to the Consolidated Financial Statements included in the 2023 Annual Report) and derivative transactions (see Note 8).

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 $ 238 million and $ 245 million at redemption value at June 30, 2024 and December 31, 2023 , respectively.

In addition, the Company’s investment in FHLB common stock, which is considered restricted until redeemed by the issuer, was $ 242 million and $ 245 million at redemption value at September 30, 2024 and December 31, 2023, 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, 2024 or December 31, 2023.

There were no material VIEs for which the Company has concluded that it is the primary beneficiary at either September 30, 2024 or December 31, 2023.

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, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Amount Maximum

28 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

12 unchanged sentences

_______________

(1) Includes net investment income pertaining to other limited partnership interests of $ 102 million and $ 195 million for the three months and six months ended June 30, 2024, respectively, and $ 93 million and $ 92 million for the three months and six months ended June 30, 2023, respectively.

(1) Includes net investment income pertaining to other limited partnership interests of $ 64 million and $ 259 million for the three months and nine months ended September 30, 2024, respectively, and $ 64 million and $ 156 million for the three months and nine months ended September 30, 2023, respectively.

Net Investment Gains (Losses)

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

6 unchanged sentences

Total net investment gains (losses) $ ( 60 ) $ ( 53 ) $ ( 222 ) $ ( 213 )

Gains (losses) from foreign currency transactions included within net investment gains (losses) were not significant for the three months and six months ended June 30, 2024 and 2023.

Gains (losses) from foreign currency transactions included within net investment gains (losses) were not significant for the three months and nine months ended September 30, 2024 and 2023.

Brighthouse Financial, Inc.

5 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

14 unchanged sentences

• Equity market derivatives:

options, total return swaps and hybrid options;

futures, options, total return swaps and hybrid options;

• Credit derivatives:

1 unchanged sentence

For detailed information on these contracts and the related strategies, see Note 7 of the Notes to the Consolidated Financial Statements included in the 2023 Annual Report.

In the second quarter of 2024, the Company utilized interest rate futures to manage risk related to policyholder liabilities for institutional group annuities.

These interest rate futures are non-qualified hedges.

In the first quarter of 2024, the Company entered into interest rate swaps to manage the interest rate risk in funding agreement liabilities.

These interest rate swaps are qualifying hedges.

In the third quarter of 2024, the Company began utilizing equity futures as non-qualified hedges to manage risk related to certain of its index-linked annuity products.

In the second quarter of 2024, the Company began utilizing interest rate futures as non-qualified hedges to manage risk related to policyholder liabilities for institutional group annuities.

In the first quarter of 2024, the Company entered into interest rate swaps that qualify for hedge accounting to manage the interest rate risk in certain of its funding agreement liabilities.

Brighthouse Financial, Inc.

3 unchanged sentences

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

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Primary Underlying Risk Exposure Gross

19 unchanged sentences

Credit default swaps — written Credit 1,095 20 — 1,405 27 —

Equity futures Equity market 2 — — — — —

Equity index options Equity market 15,943 855 443 20,099 757 687

3 unchanged sentences

Total $ 238,201 $ 3,450 $ 4,002 $ 173,236 $ 3,714 $ 5,088

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, 2024 and December 31, 2023.

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, 2024 and December 31, 2023.

The Company’s use of derivatives includes (i) derivatives that serve as 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;

8 unchanged sentences

(In millions)

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Derivatives Designated as Hedging Instruments:

11 unchanged sentences

Total $ ( 101 ) $ 8 $ 11 $ 2 $ ( 119 )

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Derivatives Designated as Hedging Instruments:

16 unchanged sentences

(In millions)

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Derivatives Designated as Hedging Instruments:

11 unchanged sentences

Total $ ( 2,673 ) $ ( 3 ) $ 38 $ 6 $ ( 22 )

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Derivatives Designated as Hedging Instruments:

11 unchanged sentences

Total $ ( 3,208 ) $ ( 18 ) $ 43 $ — $ ( 123 )

At June 30, 2024 and December 31, 2023, the Company held no qualified derivatives hedging exposure to future cash flows for forecasted asset purchases.

At June 30, 2024 and December 31, 2023, the balance in AOCI associated with cash flow hedges was $ 443 million and $ 351 million, respectively.

At September 30, 2024 and December 31, 2023, the Company held no qualified derivatives hedging exposure to future cash flows for forecasted asset purchases.

At September 30, 2024 and December 31, 2023, the balance in AOCI associated with cash flow hedges was $ 316 million and $ 351 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, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Rating Agency Designation of Referenced Credit Obligations (1) Estimated

28 unchanged sentences

See Note 9 for a description of the impact of credit risk on the valuation of derivatives.

Brighthouse Financial, Inc.

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

Derivatives (continued)

The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:

2 unchanged sentences

(In millions)

June 30, 2024

September 30, 2024

Derivative assets $ 3,149 $ ( 2,704 ) $ ( 330 ) $ 115 $ ( 91 ) $ 24

5 unchanged sentences

(1) Represents amounts subject to an enforceable master netting agreement or similar agreement.

Brighthouse Financial, Inc.

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

Derivatives (continued)

(2) The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement.

4 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, 2024 December 31, 2023

September 30, 2024 December 31, 2023

(In millions)

13 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, 2024

September 30, 2024

Fair Value Hierarchy Total Estimated

92 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, 2024.

The Company did not have significant price adjustments during the nine months ended September 30, 2024.

Determination of Fair Value

80 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, 2024 December 31, 2023 Impact of

September 30, 2024 December 31, 2023 Impact of

Increase in Input

50 unchanged sentences

Government Equity

Securities Net

Securities Short-term

Investments Net

Derivatives (2) Embedded Derivatives on Index-Linked Annuities

(In millions)

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Balance, beginning of period

8 unchanged sentences

Issuances (5)

— — — — — — —

Settlements (5)

— — — — — — 120

Transfers into Level 3 (6)

33 — — — — — —

Transfers out of Level 3 (6)

1 unchanged sentence

Balance, end of period $ 1,092 $ 396 $ 23 $ 22 $ 2 $ 10 $ ( 11,527 )

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Balance, beginning of period

8 unchanged sentences

Issuances (5)

— — — — — — —

Settlements (5)

1 unchanged sentence

Transfers into Level 3 (6)

45 12 — — — — —

Transfers out of Level 3 (6)

1 unchanged sentence

Balance, end of period $ 1,140 $ 345 $ 33 $ 25 $ — $ 26 $ ( 6,031 )

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2024 (7)

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2024 (7)

$ ( 17 ) $ — $ — $ ( 1 ) $ — $ ( 1 ) $ ( 1,262 )

Changes in unrealized gains (losses) included in OCI for the instruments still held as of June 30, 2024 (7)

Changes in unrealized gains (losses) included in OCI for the instruments still held as of September 30, 2024 (7)

$ — $ 4 $ 2 $ — $ — $ — $ —

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2023 (7)

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2023 (7)

$ ( 9 ) $ — $ — $ 1 $ — $ 3 $ 785

Changes in unrealized gains (losses) included in OCI for the instruments still held as of June 30, 2023 (7)

Changes in unrealized gains (losses) included in OCI for the instruments still held as of September 30, 2023 (7)

$ ( 25 ) $ ( 3 ) $ ( 1 ) $ — $ — $ ( 3 ) $ —

6 unchanged sentences

Government Equity

Securities Net

Securities Short-term

Investments Net

Derivatives (2) Embedded Derivatives on Index-Linked Annuities

(In millions)

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Balance, beginning of period

8 unchanged sentences

Issuances (5)

— — — — — — —

Settlements (5)

1 unchanged sentence

Transfers into Level 3 (6)

19 — — — — — —

Transfers out of Level 3 (6)

1 unchanged sentence

Balance, end of period $ 1,092 $ 396 $ 23 $ 22 $ 2 $ 10 $ ( 11,527 )

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Balance, beginning of period

3 unchanged sentences

Total realized/unrealized gains (losses) included in AOCI

( 11 ) ( 2 ) — — — ( 3 ) —

Purchases (5)

2 unchanged sentences

Issuances (5)

— — — — — — —

Settlements (5)

1 unchanged sentence

Transfers into Level 3 (6)

101 10 — — — — —

Transfers out of Level 3 (6)

1 unchanged sentence

Balance, end of period $ 1,140 $ 345 $ 33 $ 25 $ — $ 26 $ ( 6,031 )

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2024 (7)

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2024 (7)

$ ( 35 ) $ — $ — $ ( 3 ) $ — $ ( 2 ) $ ( 4,183 )

Changes in unrealized gains (losses) included in OCI for the instruments still held as of June 30, 2024 (7)

Changes in unrealized gains (losses) included in OCI for the instruments still held as of September 30, 2024 (7)

$ ( 5 ) $ 4 $ 1 $ — $ — $ — $ —

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2023 (7)

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2023 (7)

$ ( 11 ) $ — $ — $ ( 2 ) $ — $ ( 2 ) $ ( 2,183 )

Changes in unrealized gains (losses) included in OCI for the instruments still held as of June 30, 2023 (7)

Changes in unrealized gains (losses) included in OCI for the instruments still held as of September 30, 2023 (7)

$ ( 20 ) $ ( 3 ) $ — $ — $ — $ ( 3 ) $ —

7 unchanged sentences

Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(4) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.

(5) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward.

Fees attributed to embedded derivatives are included in settlements.

Brighthouse Financial, Inc.

1 unchanged sentence

Fair Value (continued)

(4) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.

(5) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward.

Fees attributed to embedded derivatives are included in settlements.

(6) Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period.

9 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, 2024

September 30, 2024

Fair Value Hierarchy

25 unchanged sentences

Preferred Stock

Preferred stock shares authorized, issued and outstanding were as follows at both June 30, 2024 and December 31, 2023:

Preferred stock shares authorized, issued and outstanding were as follows at both September 30, 2024 and December 31, 2023:

Shares Authorized Shares Issued Shares Outstanding

10 unchanged sentences

The per share and aggregate dividends declared for BHF’s preferred stock by series were as follows:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

7 unchanged sentences

Common Stock Repurchase Program

During the six months ended June 30, 2024 and 2023, BHF repurchased 2,634,041 and 2,684,792 shares, respectively, of its common stock through open market purchases pursuant to Rule 10b5-1 plans for $ 126 million for both periods.

At June 30, 2024, BHF had $ 667 million remaining under its common stock repurchase program.

During the nine months ended September 30, 2024 and 2023, BHF repurchased 4,062,047 and 3,968,138 shares, respectively, of its common stock through open market purchases pursuant to Rule 10b5-1 plans for $ 190 million for both periods.

At September 30, 2024, BHF had $ 603 million remaining under its common stock repurchase program.

Brighthouse Financial, Inc.

3 unchanged sentences

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

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized

2 unchanged sentences

(In millions)

Balance at March 31, 2024

Balance at June 30, 2024

$ ( 5,245 ) $ 350 $ ( 1,624 ) $ 1,153 $ ( 53 ) $ ( 5,419 )

5 unchanged sentences

Amounts reclassified from AOCI, net of income tax 15 ( 7 ) — — 2 10

Balance at June 30, 2024

Balance at September 30, 2024

$ ( 3,123 ) $ 249 $ ( 1,828 ) $ 612 $ ( 37 ) $ ( 4,127 )

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized

2 unchanged sentences

(In millions)

Balance at March 31, 2023

Balance at June 30, 2023

$ ( 5,689 ) $ 430 $ ( 1,475 ) $ 905 $ ( 52 ) $ ( 5,881 )

5 unchanged sentences

Amounts reclassified from AOCI, net of income tax 43 ( 2 ) — — ( 2 ) 39

Balance at June 30, 2023 $ ( 5,689 ) $ 430 $ ( 1,475 ) $ 905 $ ( 52 ) $ ( 5,881 )

Six Months Ended June 30, 2024

Balance at September 30, 2023 $ ( 7,613 ) $ 403 $ ( 1,338 ) $ 1,492 $ ( 60 ) $ ( 7,116 )

Nine Months Ended September 30, 2024

Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized

10 unchanged sentences

Amounts reclassified from AOCI, net of income tax 111 ( 11 ) — — 3 103

Balance at June 30, 2024

Balance at September 30, 2024

$ ( 3,123 ) $ 249 $ ( 1,828 ) $ 612 $ ( 37 ) $ ( 4,127 )

2 unchanged sentences

Equity (continued)

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized

10 unchanged sentences

Amounts reclassified from AOCI, net of income tax 138 ( 5 ) — — 2 135

Balance at June 30, 2023

Balance at September 30, 2023

$ ( 7,613 ) $ 403 $ ( 1,338 ) $ 1,492 $ ( 60 ) $ ( 7,116 )

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

24 unchanged sentences

The Company has entered into contracts with mutual funds, fund managers, and their affiliates (collectively, the “Funds”) whereby the Company is paid monthly or quarterly fees (“12b-1 fees”) for providing certain services to customers and distributors of the Funds.

The 12b-1 fees are generally equal to a fixed percentage of the average daily balance of the customer’s investment in a fund.

The 12b-1 fees, which are included in other revenues, are generally equal to a fixed percentage of the average daily balance of the customer’s investment in a fund.

The percentage is specified in the contract between the Company and the Funds.

2 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 $ 69 million and $ 136 million for the three months and six months ended June 30, 2024, respectively, and $ 66 million and $ 133 million for the three months and six months ended June 30, 2023, respectively, of which substantially all were reported in the Annuities segment.

Other revenues included 12b-1 fees of $ 68 million and $ 204 million for the three months and nine months ended September 30, 2024, respectively, and $ 68 million and $ 201 million for the three months and nine months ended September 30, 2023, respectively, of which substantially all were reported in the Annuities segment.

Other Expenses

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

16 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

7 unchanged sentences

Diluted $ 2.47 $ 6.89 $ ( 5.82 ) $ ( 4.08 )

For the three months ended June 30, 2024, weighted average shares used for calculating diluted earnings per common share excludes 187,371 shares underlying out-of-the-money stock options, as the inclusion of such shares would be antidilutive under the treasury stock method to the earnings per common share calculation due to the average share price for the three months ended June 30, 2024.

For the six months ended June 30, 2024 and the three months and six months ended June 30, 2023, basic loss per common share equaled diluted loss per common share.

For both the three months ended September 30, 2024 and 2023, weighted average shares used for calculating diluted earnings per common share excludes 187,371 shares underlying out-of-the-money stock options, as the inclusion of such shares would be antidilutive under the treasury stock method to the earnings per common share calculation due to the average share price for both the three months ended September 30, 2024 and 2023.

For both the nine months ended September 30, 2024 and 2023, basic loss per common share equaled diluted loss per common share.

The diluted shares were not included in the per share calculation for these periods as the inclusion of such shares would have an antidilutive effect.

18 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, 2024.

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, 2024.

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, 2024, 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, 2024, 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

17 unchanged sentences

Plaintiff was granted leave to amend the complaint.

On January 18, 2023, plaintiff filed a motion on consent to amend the second amended class action complaint to narrow the scope of the class sought to those persons who own or owned life insurance policies issued in Georgia.

On January 18, 2023, Plaintiff filed a motion on consent to amend the second amended class action complaint to narrow the scope of the class sought to those who own or owned policies issued in Georgia;

the motion was granted on January 23, 2023, and the third amended class action complaint was filed on January 23, 2023.

19 unchanged sentences

The action relates to a data security incident at an alleged third-party vendor, PBI Research Services (“PBI”), and allegedly involves the MOVEit file transfer system that PBI uses in its provision of services (“MOVEit Incident”).

As it relates to BHF, plaintiff seeks to certify a subclass of persons whose private information was allegedly maintained by BHF and accessed or acquired in connection with the MOVEit Incident.

As it relates to BHF, Plaintiff seeks to certify a subclass of persons whose private information was allegedly maintained by BHF and accessed or acquired in relation to the MOVEit Incident.

Plaintiff alleges, among other things, that BHF negligently chose to utilize PBI to store and transfer Plaintiff’s and purported class members’ private information despite PBI’s use of the MOVEit software which Plaintiff contends contained security vulnerabilities.

The complaint asserts claims against BHF for negligence, negligence per se, and unjust enrichment, and Plaintiff seeks declaratory and injunctive relief, damages, attorneys’ fees and prejudgment interest.

The Company intends to vigorously defend this matter.

BHF intends to vigorously defend this matter.

Various litigations, claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, investor and taxpayer.

15 unchanged sentences

In the matters where the Company’s subsidiaries are acting as the reinsured or the reinsurer, such reinsurance matters have involved assertions by third parties primarily related to rates, fees or reinsured benefit calculations, and certain of such reinsurance matters have resulted in arbitration.

As of June 30, 2024, the Company estimates the range of reasonably possible losses in excess of the amounts accrued for certain other loss contingencies to be from zero up to approximately $ 75 million relating to certain tax matters, as described above.

As of September 30, 2024, the Company estimates the range of reasonably possible losses in excess of the amounts accrued for certain other loss contingencies to be from zero up to approximately $ 75 million relating to certain tax matters, as described above.

For certain other matters, the Company may not currently be able to estimate the reasonably possible loss or estimated 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 $ 307 million and $ 377 million at June 30, 2024 and December 31, 2023, respectively.

The amounts of these mortgage loan commitments were $ 408 million and $ 377 million at September 30, 2024 and December 31, 2023, 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 $ 1.4 billion at both June 30, 2024 and December 31, 2023.

The amounts of these unfunded commitments were $ 1.6 billion and $ 1.4 billion at September 30, 2024 and December 31, 2023, 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, 2024 and December 31, 2023 for indemnities, guarantees and commitments.

The Company did no t have any liabilities recorded at September 30, 2024 and had recorded liabilities of $ 1 million at December 31, 2023 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