What changed in this filing

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Item 1. Financial Statements

2025-05-09 compared with 2024-11-08 · 300 added, 493 removed, 1509 unchanged (34% of the section changed)

2 unchanged sentences

Interim Condensed Consolidated Balance Sheets

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

March 31, 2025 (Unaudited) and December 31, 2024

(In millions, except share and per share data)

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

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

2 unchanged sentences

$ 80,640 $ 80,055

Trading securities, at estimated fair value

Equity securities, at estimated fair value 73 77

45 unchanged sentences

Total liabilities and equity

$ 234,681 $ 238,537

See accompanying notes to the interim condensed consolidated financial statements.

1 unchanged sentence

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

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

For the Three Months Ended March 31, 2025 and 2024 (Unaudited)

(In millions, except per share data)

Three Months Ended

September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Premiums $ 186 $ 202

6 unchanged sentences

Policyholder benefits and claims (including liability remeasurement gains (losses) of $ 0 and $ 0 , respectively)

22 590 1,632 1,966

Interest credited to policyholder account balances 561 502

21 unchanged sentences

Interim Condensed Consolidated Statements of Equity

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

For the Three Months Ended March 31, 2025 and 2024 (Unaudited)

(In millions)

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

Comprehensive

Income (Loss) Brighthouse Financial, Inc.’s Stockholders’ Equity Noncontrolling Interests Total Equity

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

Brighthouse Financial, Inc.’s Stockholders’ Equity Noncontrolling Interests Total Equity

Balance at December 31, 2024 $ — $ 1 $ 13,927 $ ( 1,119 ) $ ( 2,572 ) $ ( 5,278 ) $ 4,959 $ 65 $ 5,024

Treasury stock acquired in connection with share repurchases ( 59 ) ( 59 ) ( 59 )

( 126 ) ( 126 ) ( 126 )

Share-based compensation

3 unchanged sentences

Change in noncontrolling interests — ( 2 ) ( 2 )

— ( 2 ) ( 2 )

Net income (loss)

1 unchanged sentence

Other comprehensive income (loss), net of income tax

( 173 ) ( 173 ) ( 173 )

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

( 64 ) ( 64 ) ( 64 )

Share-based compensation

— 7 ( 1 ) 6 6

Dividends on preferred stock

( 26 ) ( 26 ) ( 26 )

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 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

Comprehensive

Income (Loss) Brighthouse Financial, Inc.’s Stockholders’ Equity Noncontrolling Interests Total Equity

Balance at March 31, 2025 $ — $ 1 $ 13,939 $ ( 1,387 ) $ ( 2,644 ) $ ( 4,670 ) $ 5,239 $ 65 $ 5,304

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

Brighthouse Financial, Inc.’s Stockholders’ Equity Noncontrolling Interests Total Equity

Balance at December 31, 2023 $ — $ 1 $ 14,004 $ ( 1,507 ) $ ( 2,309 ) $ ( 5,246 ) $ 4,943 $ 65 $ 5,008

5 unchanged sentences

Other comprehensive income (loss), net of income tax ( 167 ) ( 167 ) ( 167 )

Balance at June 30, 2023

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

Treasury stock acquired in connection with share repurchases ( 64 ) ( 64 ) ( 64 )

Share-based compensation — 9 ( 1 ) 8 8

Dividends on preferred stock ( 26 ) ( 26 ) ( 26 )

Change in noncontrolling interests — ( 2 ) ( 2 )

Net income (loss) 479 479 2 481

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

Balance at September 30, 2023

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

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

See accompanying notes to the interim condensed consolidated financial statements.

1 unchanged sentence

Interim Condensed Consolidated Statements of Cash Flows

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

For the Three Months Ended March 31, 2025 and 2024 (Unaudited)

(In millions)

Nine Months Ended

September 30,

Three Months Ended

Net cash provided by (used in) operating activities $ 146 $ ( 530 )

2 unchanged sentences

Fixed maturity securities 3,140 2,277

Trading securities 6 —

Equity securities 12 24

3 unchanged sentences

Fixed maturity securities ( 2,821 ) ( 2,438 )

Trading securities ( 18 ) —

Equity securities ( 8 ) ( 1 )

6 unchanged sentences

Net change in other invested assets — ( 202 )

Other, net ( 4 ) —

Net cash provided by (used in) investing activities

( 1,837 ) ( 2,644 )

Cash flows from financing activities

3 unchanged sentences

Net change in payables for collateral under securities loaned and other transactions 13 ( 17 )

Long-term debt repaid ( 1 ) ( 1 )

Dividends on preferred stock ( 26 ) ( 26 )

18 unchanged sentences

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

The Company is organized into the following segments:

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

The Company is organized into the following reportable segments:

and Corporate & Other.

Basis of Presentation

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Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2024 Annual Report.

Summary of Significant Accounting Policies

In connection with the establishment of a trading portfolio comprised of fixed income securities, the Company updated its impacted accounting policies as described below.

See Note 1 of the Notes to the Consolidated Financial Statements included in the 2024 Annual Report for a description of the Company’s accounting policies that did not change.

Trading Securities

The Company’s trading securities consist primarily of fixed maturity securities and are reported at their estimated fair value.

Realized and unrealized investment gains (losses) on trading securities are recorded in net investment income on the interim condensed consolidated statements of operations.

Adoption of New Accounting Pronouncements

1 unchanged sentence

The Company considers the applicability and impact of all ASUs.

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

There were no significant ASUs adopted during the period ended March 31, 2025.

Brighthouse Financial, Inc.

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

Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Future Adoption of New Accounting Pronouncements

In November 2024, the FASB issued new guidance on income statement expense disclosures (ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) :

Disaggregation of Income Statement Expenses).

This ASU requires public companies to disclose additional disaggregated information about expenses in the notes to financial statements at each interim and annual reporting period.

This ASU is effective for fiscal years starting January 1, 2027, and for interim periods starting January 1, 2028.

This ASU is required to be adopted prospectively with the option of retrospective application.

The Company is currently evaluating the impact of this guidance on its financial statements.

In December 2023, the FASB issued new guidance on Income Tax Disclosures (ASU 2023-09, Income Taxes (Topic 740):

1 unchanged sentence

This ASU updates the required income tax disclosures to include disclosure of income taxes paid disaggregated by jurisdiction and greater disaggregation of information in the required rate reconciliation.

This ASU is effective for fiscal years starting January 1, 2025, and will be applied on a prospective basis.

The Company is currently evaluating the impact of this guidance on its financial statements.

Brighthouse Financial, Inc.

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

Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

In November 2023, the FASB issued new guidance on Segment Reporting Disclosures (ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures) .

This ASU updates reportable segment disclosures primarily through enhanced disclosures about significant segment expenses.

This ASU does not change how a company identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments.

This ASU is effective for fiscal years starting January 1, 2024, and for interim periods starting January 1, 2025, and will be applied on a retrospective basis.

This ASU is effective for annual periods starting with fiscal year 2025, and is to be applied on a prospective basis with the option of retrospective application.

The Company is currently evaluating the impact of this guidance on its financial statements.

Segment Information

The Company is organized into the following segments:

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

The Company is organized and provides its products and services through the following reportable segments:

and Corporate & Other.

The Company’s chief operating decision maker (“CODM”) views and manages the business through these segments.

The Annuities segment consists of a variety of variable, fixed, index-linked and income annuities designed to address contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer and income security.

2 unchanged sentences

Corporate & Other

Corporate & Other contains the excess capital not allocated to the segments and interest expense related to the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues.

Corporate & Other also includes long-term care business reinsured through 100% quota share reinsurance agreements and activities related to funding agreements associated with the Company’s institutional spread margin business.

Financial Measures and Segment Accounting Policies

Adjusted earnings is a financial measure used by management to evaluate performance and facilitate comparisons to industry results.

Consistent with GAAP guidance for segment reporting, adjusted earnings is also used to measure segment performance.

The Corporate & Other segment consists of activities related to funding agreements associated with the Company’s institutional spread margin business, excess capital not allocated to the other segments, interest expense related to the Company’s outstanding debt, and preferred stock dividends, as well as expenses associated with certain legal proceedings and income tax audit issues.

Corporate & Other also includes long-term care business reinsured through 100% quota share reinsurance agreements.

Financial Measure and Segment Accounting Policies

The Company’s CODM is its Chief Executive Officer (“CEO”).

The CEO uses adjusted earnings to evaluate segment performance and facilitate comparisons to industry results.

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

The Company uses the term “adjusted loss” throughout this report to refer to negative adjusted earnings values.

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

• Net investment gains (losses);

• Net derivative gains (losses), excluding 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 (“Investment Hedge Adjustments”).

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

• Change in market risk benefits (“MRB”);

• Change in fair value of the crediting rate on experience-rated contracts (“Market Value Adjustments”).

Adjusted earnings was updated during the first quarter of 2025 in connection with the establishment of a trading portfolio comprised of certain fixed income securities.

The Company did not have trading securities prior to the first quarter of 2025.

Brighthouse Financial, Inc.

1 unchanged sentence

Segment Information (continued)

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

• Net investment gains (losses);

• Investment gains (losses) on trading securities measured at estimated fair value through net investment income;

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

• Change in market risk benefits (“MRB”);

• Change in fair value of the crediting rate on experience-rated contracts and market value adjustments on institutional group annuities that are economically offset by gains (losses) on the related trading securities (“Market Value Adjustments”).

The provision for income tax related to adjusted earnings is calculated using the statutory tax rate of 21%, net of impacts related to the dividends received deduction, tax credits and current period non-recurring items.

5 unchanged sentences

For insurance businesses other than variable annuities, excess capital held is based on a percentage of required statutory risk-based capital.

Assets in excess of those allocated to the segments, if any, are held in Corporate & Other.

Assets in excess of those allocated to the Annuities, Life and Run-off segments, if any, are held in Corporate & Other.

Segment net investment income reflects the performance of each segment’s respective invested assets.

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

Three Months Ended September 30, 2024

Annuities Life Run-off Corporate & Other Total

(In millions)

Pre-tax adjusted earnings (loss)

$ 403 $ ( 32 ) $ 584 $ 13 $ 968

Provision for income tax expense (benefit) 76 ( 7 ) 121 ( 17 ) 173

Post-tax adjusted earnings (loss)

327 ( 25 ) 463 30 795

Net income (loss) attributable to noncontrolling interests — — — 2 2

Preferred stock dividends — — — 26 26

Adjusted earnings (loss)

$ 327 $ ( 25 ) $ 463 $ 2 767

Adjustments for:

Net investment gains (losses) ( 60 )

Net derivative gains (losses), excluding investment hedge adjustments of $ 6

Change in market risk benefits ( 610 )

Market value adjustments ( 11 )

Provision for income tax (expense) benefit 163

Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ 150

Interest revenue $ 729 $ 112 $ 275 $ 178

Interest expense $ — $ — $ — $ 38

Brighthouse Financial, Inc.

1 unchanged sentence

Segment Information (continued)

Three Months Ended September 30, 2023

Annuities Life Run-off Corporate & Other Total

(In millions)

Pre-tax adjusted earnings (loss)

$ 393 $ ( 93 ) $ 120 $ 9 $ 429

Provision for income tax expense (benefit) 74 ( 20 ) 25 ( 4 ) 75

Post-tax adjusted earnings (loss)

319 ( 73 ) 95 13 354

Net income (loss) attributable to noncontrolling interests — — — 2 2

Preferred stock dividends — — — 26 26

Adjusted earnings (loss)

$ 319 $ ( 73 ) $ 95 $ ( 15 ) 326

Adjustments for:

Net investment gains (losses) ( 53 )

Net derivative gains (losses), excluding investment hedge adjustments of $ 25

Change in market risk benefits 1,064

Market value adjustments 15

Provision for income tax (expense) benefit ( 34 )

Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders

Interest revenue $ 652 $ 115 $ 300 $ 160

Interest expense $ — $ — $ — $ 38

Nine Months Ended September 30, 2024

The tables below provide information about the Company’s segments, including significant segment expenses, and reconciliations to Net income (loss) available to common shareholders.

Three Months Ended March 31, 2025

Annuities Life Run-off Corporate & Other Total

(In millions)

Pre-tax adjusted earnings (loss)

$ 1,198 $ ( 26 ) $ 115 $ 42 $ 1,329

Total revenues $ 1,590 $ 281 $ 368 $ 151 $ 2,390

Revenues excluded from adjusted earnings (1) 246 ( 10 ) 1 ( 3 )

Segment expenses:

Policyholder benefits and claims 110 187 352 —

Interest credited to policyholder account balances, excluding market value adjustments 358 27 60 106

Amortization of DAC and VOBA 126 22 — —

Interest expense on debt — — — 38

Other expenses (2) 363 45 36 11

Provision for income tax expense (benefit) 73 1 ( 17 ) ( 5 )

Post-tax adjusted earnings (loss)

972 ( 19 ) 92 51 1,096

Net income (loss) attributable to noncontrolling interests — — — 2

1 unchanged sentence

Adjusted earnings (loss) $ 314 $ 9 $ ( 64 ) $ ( 24 ) 235

$ 972 $ ( 19 ) $ 92 $ ( 30 ) 1,015

Adjustments for:

Net investment gains (losses) ( 83 )

Investment gains (losses) on trading securities 6

Net derivative gains (losses), excluding investment hedge adjustments of $ 0

4 unchanged sentences

Interest revenue $ 753 $ 107 $ 272 $ 159

Interest expense $ — $ — $ — $ 114

Brighthouse Financial, Inc.

1 unchanged sentence

Segment Information (continued)

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Annuities Life Run-off Corporate & Other Total

(In millions)

Pre-tax adjusted earnings (loss)

$ 1,137 $ ( 75 ) $ ( 35 ) $ 19 $ 1,046

Total revenues $ ( 464 ) $ 207 $ 146 $ 185 $ 74

Revenues excluded from adjusted earnings (1) ( 1,768 ) ( 10 ) ( 210 ) 12

Segment expenses:

Policyholder benefits and claims 145 150 673 —

Interest credited to policyholder account balances, excluding market value adjustments 303 25 69 109

Amortization of DAC and VOBA 127 24 — —

Interest expense on debt — — — 38

Other expenses (2) 344 64 46 15

Provision for income tax expense (benefit) 72 ( 10 ) ( 91 ) 17

Post-tax adjusted earnings (loss)

924 ( 57 ) ( 27 ) 33 873

Net income (loss) attributable to noncontrolling interests — — — 2

1 unchanged sentence

Adjusted earnings (loss) $ 313 $ ( 36 ) $ ( 341 ) $ ( 34 ) ( 98 )

$ 924 $ ( 57 ) $ ( 27 ) $ ( 48 ) 792

Adjustments for:

Net investment gains (losses) ( 42 )

Investment gains (losses) on trading securities —

Net derivative gains (losses), excluding investment hedge adjustments of $ 13

4 unchanged sentences

Interest revenue $ 676 $ 107 $ 316 $ 168

Interest expense $ — $ — $ — $ 114

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

Three Months Ended

September 30, Nine Months Ended

September 30,

_______________

(1) For each reportable segment, certain revenues are excluded from adjusted earnings (loss), including net investment gains (losses), investment gains (losses) on trading securities and net derivative gains (losses), excluding investment hedge adjustments.

(2) Other expenses include corporate expense allocations directly attributable to each of the segments.

Total assets by segment were as follows at:

March 31, 2025 December 31, 2024

(In millions)

3 unchanged sentences

Corporate & Other 22,810 23,573

Adjustments ( 159 ) ( 918 ) ( 2,926 ) ( 3,525 )

Total $ 234,681 $ 238,537

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

September 30, 2024 December 31, 2023

Brighthouse Financial, Inc.

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

Segment Information (continued)

Total premiums, universal life and investment-type product policy fees and other revenues by major product group were as follows:

Three Months Ended

(In millions)

Annuities $ 168,286 $ 160,775

Life 25,732 25,504

Run-off 26,465 26,828

Corporate & Other 24,673 23,233

Annuity products

Life insurance products 275 148

Other products ( 2 ) 7

Total $ 865 $ 783

Substantially all of the Company’s premiums, universal life and investment-type product policy fees and other revenues originated in the U.S.

Revenues derived from any individual customer did not exceed 10% of premiums, universal life and investment-type product policy fees and other revenues for the three months ended March 31, 2025 and 2024.

Brighthouse Financial, Inc.

3 unchanged sentences

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

Nine Months Ended September 30,

Three Months Ended March 31,

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 — — — 1 — —

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

Effect of actual variances from expected experience ( 4 ) — — ( 7 ) — —

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Effect of model refinements 1 — — 1 — —

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

Effect of actual variances from expected experience 2 ( 21 ) ( 19 ) ( 5 ) 4 ( 2 )

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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:

Nine Months Ended September 30,

Three Months Ended

(Dollars in millions)

1 unchanged sentence

Beginning balance before the effect of unrealized gains and losses 9,277 7,784

Effect of changes in cash flow assumptions 895 52

Effect of actual variances from expected experience 63 40

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 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.

Participating whole life insurance represented 3 % of the Company’s life insurance in-force at both March 31, 2025 and 2024, and 39 % and 41 % of gross traditional life insurance premiums for the three months ended March 31, 2025 and 2024, respectively.

Brighthouse Financial, Inc.

5 unchanged sentences

(Dollars in millions)

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Balance, beginning of period $ 2,590 $ 3,833 $ 48,605 $ 14,665 $ 4,779 $ 1,166

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Weighted-average crediting rate (2) 0.96 % 0.63 % 0.48 % 0.97 % 0.82 % 0.65 %

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

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

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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)

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(In millions)

September 30, 2024

March 31, 2025

Annuities (1):

Less than 2.00 %

$ 564 $ 116 $ 229 $ 8,821 $ 9,730

2.00 % to 3.99 %

6,836 490 589 333 8,248

Greater than 3.99 %

769 — — — 769

$ 8,169 $ 606 $ 818 $ 9,154 $ 18,747

Life insurance (2) (3):

Less than 2.00 %

$ — $ — $ — $ 341 $ 341

2.00 % to 3.99 %

— 522 47 126 695

Greater than 3.99 %

1,516 — — — 1,516

$ 1,516 $ 522 $ 47 $ 467 $ 2,552

Less than 2.00 %

$ — $ — $ — $ — $ —

2.00 % to 3.99 %

1,031 1,366 1,584 235 4,216

Greater than 3.99 %

478 — — — 478

$ 1,509 $ 1,366 $ 1,584 $ 235 $ 4,694

December 31, 2024

1 unchanged sentence

Less than 2.00 %

$ 562 $ 126 $ 240 $ 8,769 $ 9,697

2.00 % to 3.99 %

7,160 462 492 385 8,499

Greater than 3.99 %

783 — — — 783

$ 8,505 $ 588 $ 732 $ 9,154 $ 18,979

Life insurance (2) (3):

Less than 2.00 %

$ — $ — $ — $ 317 $ 317

2.00 % to 3.99 %

— 522 48 131 701

Greater than 3.99 %

1,530 — — — 1,530

$ 1,530 $ 522 $ 48 $ 448 $ 2,548

Less than 2.00 %

$ — $ — $ — $ — $ —

2.00 % to 3.99 %

1,052 1,386 1,602 238 4,278

Greater than 3.99 %

1 unchanged sentence

$ 1,536 $ 1,386 $ 1,602 $ 238 $ 4,762

_______________

(1) Includes policyholder account balances for fixed rate annuities and the fixed account portion of variable annuities.

6 unchanged sentences

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

Nine Months Ended September 30,

Three Months Ended

(Dollars in millions)

2 unchanged sentences

Decrements ( 23 ) ( 30 )

Effect of changes in future expected assumptions ( 53 ) 259

Effect of actual different from expected experience ( 19 ) —

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_______________

(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)

(1) Amounts represent the sum of MRB assets and MRB liabilities presented on the consolidated balance sheets at March 31, 2025 and 2024, with the exception of $ 30 million and $ 8 million, respectively, of index-linked annuities not included in this table.

Separate Accounts

1 unchanged sentence

Information regarding separate account liabilities was as follows:

Nine Months Ended September 30,

Three Months Ended March 31,

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 $ 73,889 $ 6,125 $ 2,249 $ 81,792 $ 6,259 $ 2,054

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:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(In millions)

5 unchanged sentences

Total aggregate estimated fair value of assets $ 82,524 $ 85,636

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)

September 30, 2024

March 31, 2025

Account balances reported in the preceding rollforward tables:

4 unchanged sentences

Cash surrender value $ 8,130 $ 77,248 $ 46,235 $ 14,248 $ 4,269 $ 2,692

September 30, 2023

March 31, 2024

Account balances reported in the preceding rollforward tables:

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(In millions)

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Balance, beginning of period $ 2,116 $ 115 $ 1,462 $ 310 $ 332

7 unchanged sentences

Balance, end of period $ 2,344 $ 170 $ 1,492 $ 302 $ 364

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

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

9 unchanged sentences

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

Nine Months Ended September 30,

Three Months Ended March 31,

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:

Nine Months Ended September 30,

Three Months Ended March 31,

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

4 unchanged sentences

Balance, end of period $ 359 $ 736 $ 58 $ 356 $ 640 $ 65

See Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2023 Annual Report for a description of the Company’s accounting policies for investments and the fair value hierarchy for investments and the related valuation methodologies.

See Note 1 to the Interim Condensed Consolidated Financial Statements and Notes 1 and 10 of the Notes to the Consolidated Financial Statements included in the 2024 Annual Report for a description of the Company’s accounting policies for investments and the fair value hierarchy for investments and the related valuation methodologies.

Fixed Maturity Securities Available-For-Sale

1 unchanged sentence

Fixed maturity securities by sector were as follows at:

September 30, 2024 December 31, 2023

Cost Allowance for Credit Losses Gross Unrealized Estimated

Value Amortized

Cost Allowance for Credit Losses Gross Unrealized Estimated

March 31, 2025 December 31, 2024

Amortized Cost

Allowance for Credit Losses Gross Unrealized Estimated Fair Value

Amortized Cost

Allowance for Credit Losses Gross Unrealized Estimated Fair Value

Gains Losses Gains Losses

2 unchanged sentences

Foreign corporate 12,918 29 74 1,334 11,629 13,284 26 53 1,481 11,830

government and agency 7,743 — 302 476 7,569 8,656 — 286 523 8,419

Residential mortgage-backed securities

8,277 4 58 743

7,588 8,120 4 46 875

government and agency 7,300 — 105 574 6,831 7,408 — 40 701 6,747

Commercial mortgage-backed securities

5 unchanged sentences

Total fixed maturity securities $ 87,070 $ 56 $ 680 $ 7,054 $ 80,640 $ 87,603 $ 81 $ 498 $ 7,965 $ 80,055

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.

The Company held non-income producing fixed maturity securities with an estimated fair value of $ 23 million and $ 30 million at March 31, 2025 and December 31, 2024, 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 September 30, 2024:

Year or Less Due After One

Five Years Due After Five

Years Through

Ten Years Due After Ten

Years Structured

Securities (1) Total Fixed

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at March 31, 2025:

Due in One Year or Less

Due After One Year Through Five Years

Due After Five Years Through Ten Years

Due After Ten Years

Structured Securities (1)

Total Fixed Maturity Securities

(In millions)

8 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:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

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

Losses Estimated

Estimated Fair Value

Gross Unrealized Losses

Estimated Fair Value

Gross Unrealized Losses

Estimated Fair Value

Gross Unrealized Losses

Estimated Fair Value

Gross Unrealized Losses

(Dollars in millions)

1 unchanged sentence

Foreign corporate 3,086 363 5,250 971 3,277 351 5,560 1,130

1,004 64 4,650 679 1,223 81 4,647 794

government and agency 1,259 48 1,798 526 2,457 118 1,884 583

RMBS 554 34 5,233 607 413 20 5,774 792

CMBS 1,466 75 4,323 278 1,326 90 4,402 332

27 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 $ 717 million and $ 655 million at September 30, 2024 and December 31, 2023, respectively, and is included in accrued investment income.

The accrued interest receivable on fixed maturity securities totaled $ 703 million and $ 672 million at March 31, 2025 and December 31, 2024, 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 $ 61 million, relating to 28 securities, at September 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 $ 56 million, relating to 18 securities, at March 31, 2025.

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)

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Balance, beginning of period $ 47 $ 26 $ 4 $ 4 $ 81

4 unchanged sentences

Balance, end of period $ 21 $ 29 $ 4 $ 2 $ 56

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

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

5 unchanged sentences

_______________

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

(1) The Company recorded total write-offs of $ 33 million for the three months ended March 31, 2025.

The Company did not record any write-offs for the three months ended March 31, 2024 .

Mortgage Loans

1 unchanged sentence

Mortgage loans are summarized as follows at:

September 30, 2024 December 31, 2023

Total Carrying

March 31, 2025 December 31, 2024

(Dollars in millions)

6 unchanged sentences

_______________

(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.

(1) Purchases of mortgage loans from third parties were $ 178 million and $ 161 million for the three months ended March 31, 2025 and 2024, 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 $ 128 million and $ 123 million at September 30, 2024 and December 31, 2023, respectively.

The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $ 126 million and $ 132 million at March 31, 2025 and December 31, 2024, 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.

16 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)

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Balance, beginning of period $ 106 $ 30 $ 42 $ 178

2 unchanged sentences

Balance, end of period $ 146 $ 22 $ 41 $ 209

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

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

Current period provision 9 — ( 4 ) 5

Charge-offs, net of recoveries ( 4 ) ( 1 ) — ( 5 )

Balance, end of period $ 78 $ 19 $ 45 $ 142

Brighthouse Financial, Inc.

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

Investments (continued)

Credit Quality of Mortgage Loans by Portfolio Segment

2 unchanged sentences

(In millions)

September 30, 2024

March 31, 2025

Commercial mortgage loans

34 unchanged sentences

65% to 75% — 18 80 113 6 20 237

76% to 80% — — — — 1 — 1

Greater than 80% — — — — — 16 16

Total agricultural mortgage loans 410 221 674 1,186 409 1,691 4,591

11 unchanged sentences

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

September 30, 2024 December 31, 2023

Amortized Cost % of

Total Amortized Cost % of

March 31, 2025 December 31, 2024

Amortized Cost % of Total

(Dollars in millions)

11 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 September 30, 2024 and December 31, 2023.

The Company has a high-quality, well-performing mortgage loan portfolio, with 99 % of all mortgage loans classified as performing at both March 31, 2025 and December 31, 2024.

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:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Commercial Agricultural Residential Total Commercial Agricultural Residential Total

11 unchanged sentences

(In millions)

September 30, 2024

March 31, 2025

$ 149 $ 9 $ 125 $ 283

1 unchanged sentence

$ 120 $ 25 $ 118 $ 263

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.

_______________

(1) The Company had $ 10 million and $ 3 million of mortgage loans in nonaccrual status for which there was no related allowance for credit losses at March 31, 2025 and December 31, 2024, respectively.

Current period investment income on mortgage loans in nonaccrual status was less than $ 1 million for both the three months ended March 31, 2025 and 2024.

Modified Mortgage Loans by Portfolio Segment

Under certain circumstances, modifications are granted to nonperforming mortgage loans.

Under certain circumstances, modifications are granted to mortgage loans.

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 nine months ended September 30, 2024 and 2023.

The Company did not have a significant amount of mortgage loans modified during both the three months ended March 31, 2025 and 2024.

Other Invested Assets

8 unchanged sentences

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

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(In millions)

8 unchanged sentences

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

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

(In millions)

4 unchanged sentences

Deferred income tax benefit (expense) ( 196 )

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

Balance at March 31, 2025 $ ( 4,027 )

Change in net unrealized investment gains (losses) $ 739

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 September 30, 2024 and December 31, 2023.

government and its agencies, at both March 31, 2025 and December 31, 2024.

Securities Lending

Elements of the securities lending program are presented below at:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(In millions)

11 unchanged sentences

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

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

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 September 30, 2024 was $ 624 million, primarily comprised of U.S.

The estimated fair value of the securities on loan related to the cash collateral on open at March 31, 2025 was $ 518 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 September 30, 2024.

government and agency securities and cash and cash equivalents at March 31, 2025.

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:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(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 $ 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.

(1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $ 28 million and $ 68 million of the assets on deposit represents restricted cash and cash equivalents at March 31, 2025 and December 31, 2024, respectively.

(2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $ 182 million and $ 334 million of the assets held in trust balance represents restricted cash and cash equivalents at March 31, 2025 and December 31, 2024, 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 2024 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 $ 242 million and $ 245 million at redemption value at September 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 $ 223 million and $ 222 million at redemption value at March 31, 2025 and December 31, 2024, 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 September 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 March 31, 2025 or December 31, 2024.

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:

September 30, 2024 December 31, 2023

Amount Maximum

to Loss Carrying

Amount Maximum

March 31, 2025 December 31, 2024

Carrying Amount

Maximum Exposure to Loss

Carrying Amount

Maximum Exposure to Loss

(In millions)

25 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

(In millions)

1 unchanged sentence

Fixed maturity securities $ 924 $ 919

Trading securities (1)

Equity securities — 2

3 unchanged sentences

Cash, cash equivalents and short-term investments 72 61

Other 25 24 76 66

Total investment income 1,380 1,340

2 unchanged sentences

_______________

(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.

(1) Investment gains (losses) were $ 6 million related to trading securities still held for the three months ended March 31, 2025.

There were no investment gains (losses) related to trading securities still held for the three months ended March 31, 2024.

(2) Includes net investment income pertaining to other limited partnership interests of $ 56 million and $ 93 million for the three months ended March 31, 2025 and 2024, respectively.

Net Investment Gains (Losses)

2 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

(In millions)

5 unchanged sentences

Total net investment gains (losses) $ ( 83 ) $ ( 42 )

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.

Gains (losses) from foreign currency transactions included within net investment gains (losses) were not significant for both the three months ended March 31, 2025 and 2024.

Brighthouse Financial, Inc.

5 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

(In millions)

15 unchanged sentences

• Credit derivatives:

single and index reference credit default swaps.

index reference credit default swaps.

For detailed information on these contracts and the related strategies, see Note 9 of the Notes to the Consolidated Financial Statements included in the 2024 Annual Report.

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:

September 30, 2024 December 31, 2023

Primary Underlying Risk Exposure Gross

Amount Estimated Fair Value Gross

Amount Estimated Fair Value

March 31, 2025 December 31, 2024

Primary Underlying Risk Exposure Gross Notional Amount

Estimated Fair Value Gross Notional Amount

Estimated Fair Value

Assets Liabilities Assets Liabilities

19 unchanged sentences

Equity total return swaps Equity market 103,601 1,685 1,988 106,301 1,543 1,446

Hybrid options Equity market — — — 270 — —

Total non-designated or non-qualifying derivatives 267,088 3,727 5,260 273,101 3,687 5,223

Total $ 271,379 $ 4,157 $ 5,287 $ 277,424 $ 4,135 $ 5,248

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.

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 March 31, 2025 and December 31, 2024.

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 September 30, 2024

Derivatives Designated as Hedging Instruments:

Cash flow hedges:

Interest rate $ ( 1 ) $ — $ 1 $ 2 $ ( 18 )

Foreign currency exchange rate 8 ( 6 ) 10 — ( 101 )

Total cash flow hedges 7 ( 6 ) 11 2 ( 119 )

Derivatives Not Designated or Not Qualifying as Hedging Instruments:

Interest rate 756 — — — —

Foreign currency exchange rate ( 39 ) 14 — — —

Credit 5 — — — —

Equity market 234 — — — —

Embedded ( 1,064 ) — — — —

Total non-qualifying hedges ( 108 ) 14 — — —

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

Three Months Ended September 30, 2023

Derivatives Designated as Hedging Instruments:

Cash flow hedges:

Interest rate $ — $ — $ 1 $ — $ ( 2 )

Foreign currency exchange rate 1 ( 1 ) 13 — ( 31 )

Total cash flow hedges 1 ( 1 ) 14 — ( 33 )

Derivatives Not Designated or Not Qualifying as Hedging Instruments:

Interest rate ( 1,481 ) — — — —

Foreign currency exchange rate 21 ( 16 ) — — —

Credit 3 — — — —

Equity market ( 280 ) — — — —

Embedded 913 — — — —

Total non-qualifying hedges ( 824 ) ( 16 ) — — —

Total $ ( 823 ) $ ( 17 ) $ 14 $ — $ ( 33 )

Brighthouse Financial, Inc.

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

Derivatives (continued)

Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Net Investment Income Policyholder Benefits and Claims Amount of Gains (Losses) Deferred in AOCI

(In millions)

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Derivatives Designated as Hedging Instruments:

11 unchanged sentences

Total $ 313 $ ( 2 ) $ 14 $ 1 $ ( 17 )

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Derivatives Designated as Hedging Instruments:

11 unchanged sentences

Total $ ( 1,917 ) $ ( 4 ) $ 13 $ 2 $ 53

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.

At March 31, 2025 and December 31, 2024, the Company held no qualified derivatives hedging exposure to future cash flows for forecasted asset purchases.

At March 31, 2025 and December 31, 2024, the balance in AOCI associated with cash flow hedges was $ 445 million and $ 469 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:

September 30, 2024 December 31, 2023

Rating Agency Designation of Referenced Credit Obligations (1) Estimated

Swaps Maximum

Payments under

Credit Default

Swaps Weighted

Maturity (2) Estimated

Swaps Maximum

Payments under

Credit Default

Swaps Weighted

March 31, 2025 December 31, 2024

Rating Agency Designation of Referenced Credit Obligations (1) Estimated Fair Value of Credit Default Swaps

Maximum Amount of Future Payments under Credit Default Swaps

Weighted Average Years to Maturity (2)

Estimated Fair Value of Credit Default Swaps

Maximum Amount of Future Payments under Credit Default Swaps

Weighted Average Years to Maturity (2)

(Dollars in millions)

5 unchanged sentences

_______________

(1) The Company has written credit protection on both single name and index references.

(1) The Company has written credit protection on index references.

The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s, S&P and Fitch.

17 unchanged sentences

(In millions)

September 30, 2024

March 31, 2025

Derivative assets $ 4,334 $ ( 3,506 ) $ ( 618 ) $ 210 $ ( 191 ) $ 19

11 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:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(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.

September 30, 2024

Fair Value Hierarchy Total Estimated

March 31, 2025

Fair Value Hierarchy Total Estimated Fair Value

Level 1 Level 2 Level 3

3 unchanged sentences

Foreign corporate — 11,531 98 11,629

government and agency 2,816 4,753 — 7,569

RMBS — 7,556 32 7,588

government and agency 2,702 4,129 — 6,831

CMBS — 6,412 5 6,417

3 unchanged sentences

Total fixed maturity securities 2,702 76,910 1,028 80,640

Trading securities

Equity securities 53 6 14 73

22 unchanged sentences

December 31, 2024

Fair Value Hierarchy Total Estimated

Fair Value Hierarchy Total Estimated Fair Value

Level 1 Level 2 Level 3

3 unchanged sentences

Foreign corporate — 11,434 396 11,830

government and agency 3,786 4,633 — 8,419

RMBS — 7,270 17 7,287

government and agency 2,731 4,016 — 6,747

CMBS — 6,330 26 6,356

3 unchanged sentences

Total fixed maturity securities 2,731 75,846 1,478 80,055

Trading securities

Equity securities 56 6 15 77

30 unchanged sentences

The valuation methodologies for securities, mortgage loans and derivatives are reviewed on an ongoing basis and revised when necessary.

In addition, the Chief Accounting Officer periodically reports to the Audit Committee of Brighthouse Financial, Inc.’s Board of Directors regarding compliance with fair value accounting standards.

In addition, the Chief Accounting Officer periodically reports to the Audit Committee of BHF’s Board of Directors regarding compliance with fair value accounting standards.

The fair value of financial assets and financial liabilities is based on quoted market prices, where available.

9 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 nine months ended September 30, 2024.

The Company did not have significant price adjustments during the three months ended March 31, 2025.

Determination of Fair Value

Fixed Maturity Securities

The fair values for actively traded marketable bonds, primarily U.S.

The fair values for actively traded marketable bonds designated as available-for-sale or trading securities, primarily U.S.

government and agency securities, are determined using the quoted market prices and are classified as Level 1 assets.

For fixed maturity securities classified as Level 2 assets, fair values are determined using either a market or income approach and are valued based on a variety of observable inputs as described below.

For securities classified as Level 2 assets, fair values are determined using either a market or income approach and are valued based on a variety of observable inputs as described below.

corporate and foreign corporate securities:

20 unchanged sentences

Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are OTC-bilateral.

The fair values for exchange-traded derivatives are determined using the quoted market prices and are classified as Level 1 assets.

The fair values for exchange-traded derivatives are determined using the quoted market prices and are classified as Level 1 assets or liabilities.

For OTC-bilateral derivatives and OTC-cleared derivatives classified as Level 2 assets or liabilities, fair values are determined using the income approach.

52 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:

September 30, 2024 December 31, 2023 Impact of

Increase in Input

Valuation Techniques Significant

Unobservable Inputs Range Range

March 31, 2025 December 31, 2024 Impact of Increase in Input on Estimated Fair Value

Valuation Techniques Significant Unobservable Inputs

Market Risk Benefits

Variable annuity guaranteed minimum benefits • Option pricing techniques • Mortality rates 0.04 % - 12.90 % 0.04 % - 12.90 % Decrease (1)

Variable annuity guaranteed minimum benefits • Discounted cash flows

• Mortality rates 0.04 % - 12.90 % 0.04 % - 12.90 % Decrease (1)

• Lapse rates 1.00 % - 20.20 % 1.00 % - 20.20 % Decrease (2)

4 unchanged sentences

Embedded Derivatives

Index-linked annuity crediting rates • Option pricing techniques • Mortality rates 0.03 % - 7.86 % 0.03 % - 9.24 % Decrease (1)

Registered index-linked annuity crediting rates

• Option pricing techniques • Mortality rates 0.03 % - 7.86 % 0.03 % - 7.86 % Decrease (1)

• Lapse rates 1.00 % - 62.30 % 1.00 % - 62.30 % Decrease (2)

36 unchanged sentences

Fixed Maturity Securities

Corporate (1) Structured Securities Foreign

Government Equity

Securities Short-term

Investments Net

Derivatives (2) Embedded Derivatives on Index-Linked Annuities

(In millions)

Three Months Ended September 30, 2024

Balance, beginning of period

$ 1,365 $ 506 $ 21 $ 24 $ — $ 10 $ ( 10,583 )

Total realized/unrealized gains (losses) included in net income (loss) (3) (4)

( 23 ) — — ( 2 ) — — ( 1,064 )

Total realized/unrealized gains (losses) included in AOCI

34 4 2 — — — —

Purchases (5)

65 105 — — 2 — —

( 57 ) ( 93 ) — — — — —

Issuances (5)

— — — — — — —

Settlements (5)

— — — — — — 120

Transfers into Level 3 (6)

33 — — — — — —

Transfers out of Level 3 (6)

( 325 ) ( 126 ) — — — — —

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

Three Months Ended September 30, 2023

Balance, beginning of period

$ 1,931 $ 371 $ 38 $ 25 $ — $ 27 $ ( 6,886 )

Total realized/unrealized gains (losses) included in net income (loss) (3) (4)

( 9 ) — — — — 2 913

Total realized/unrealized gains (losses) included in AOCI

( 19 ) ( 2 ) ( 1 ) — — ( 3 ) —

Purchases (5)

32 17 — — — — —

( 56 ) ( 11 ) ( 1 ) — — — —

Issuances (5)

— — — — — — —

Settlements (5)

— — — — — — ( 58 )

Transfers into Level 3 (6)

45 12 — — — — —

Transfers out of Level 3 (6)

( 784 ) ( 42 ) ( 3 ) — — — —

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 September 30, 2024 (7)

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

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 September 30, 2023 (7)

$ ( 9 ) $ — $ — $ 1 $ — $ 3 $ 785

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

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

Brighthouse Financial, Inc.

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

Fair Value (continued)

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

Fixed Maturity Securities

Corporate (1) Structured Securities Foreign

Government Equity

Securities Short-term

Investments Net

Corporate (1) Structured Securities Foreign Government

Equity Securities

Short-term Investments

Derivatives (2) Embedded Derivatives on Index-Linked Annuities

(In millions)

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Balance, beginning of period

16 unchanged sentences

Balance, end of period $ 666 $ 340 $ 22 $ 14 $ 2 $ 9 $ ( 9,925 )

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Balance, beginning of period

16 unchanged sentences

Balance, end of period $ 1,267 $ 482 $ 21 $ 25 $ — $ 11 $ ( 9,941 )

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

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2025 (7)

$ 24 $ — $ — $ ( 1 ) $ — $ — $ 950

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

Changes in unrealized gains (losses) included in OCI for the instruments still held as of March 31, 2025 (7)

$ ( 19 ) $ ( 2 ) $ 1 $ — $ — $ — $ —

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

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2024 (7)

$ ( 3 ) $ — $ — $ — $ — $ ( 3 ) $ ( 2,040 )

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

Changes in unrealized gains (losses) included in OCI for the instruments still held as of March 31, 2024 (7)

$ ( 19 ) $ ( 2 ) $ — $ — $ — $ — $ —

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.

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.

11 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:

September 30, 2024

March 31, 2025

Fair Value Hierarchy

Value Level 1 Level 2 Level 3 Total

Carrying Value

Level 1 Level 2 Level 3 Total Estimated Fair Value

(In millions)

12 unchanged sentences

Fair Value Hierarchy

Value Level 1 Level 2 Level 3 Total

Carrying Value

Level 1 Level 2 Level 3 Total Estimated Fair Value

(In millions)

8 unchanged sentences

Preferred Stock

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

Preferred stock shares authorized, issued and outstanding were as follows at both March 31, 2025 and December 31, 2024:

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 September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Series Per Share Aggregate Per Share Aggregate Per Share Aggregate Per Share Aggregate

Three Months Ended March 31,

Series Per Share Aggregate Per Share Aggregate

(In millions, except per share data)

5 unchanged sentences

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.

During the three months ended March 31, 2025 and 2024, BHF repurchased 1,062,596 and 1,247,311 shares, respectively, of its common stock through open market purchases pursuant to Rule 10b5-1 plans for $ 59 million and $ 62 million, respectively.

At March 31, 2025, BHF had $ 484 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 September 30, 2024

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

Gains (Losses)

on Derivatives Changes in Nonperformance Risk on Market Risk Benefits Changes in Discount Rates on the Liability for Future Policy Benefits Other (2) Total

(In millions)

Balance at June 30, 2024

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

OCI before reclassifications 2,666 ( 119 ) ( 258 ) ( 685 ) 17 1,621

Deferred income tax benefit (expense) (3) ( 559 ) 25 54 144 ( 3 ) ( 339 )

AOCI before reclassifications, net of income tax ( 3,138 ) 256 ( 1,828 ) 612 ( 39 ) ( 4,137 )

Amounts reclassified from AOCI 19 ( 8 ) — — 2 13

Deferred income tax benefit (expense) (3) ( 4 ) 1 — — — ( 3 )

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

Balance at September 30, 2024

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

Three Months Ended September 30, 2023

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

Gains (Losses)

on Derivatives Changes in Nonperformance Risk on Market Risk Benefits Changes in Discount Rates on the Liability for Future Policy Benefits Other (2) Total

(In millions)

Balance at June 30, 2023

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

OCI before reclassifications ( 2,490 ) ( 33 ) 174 744 ( 8 ) ( 1,613 )

Deferred income tax benefit (expense) (3) 523 8 ( 37 ) ( 157 ) 2 339

AOCI before reclassifications, net of income tax ( 7,656 ) 405 ( 1,338 ) 1,492 ( 58 ) ( 7,155 )

Amounts reclassified from AOCI 55 ( 2 ) — — ( 2 ) 51

Deferred income tax benefit (expense) (3) ( 12 ) — — — — ( 12 )

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

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

Gains (Losses)

on Derivatives Changes in Nonperformance Risk on Market Risk Benefits Changes in Discount Rates on the Liability for Future Policy Benefits Other (2) Total

Three Months Ended March 31, 2025

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

Changes in Nonperformance Risk on Market Risk Benefits Changes in Discount Rates on the Liability for Future Policy Benefits Other (2) Total

(In millions)

7 unchanged sentences

Amounts reclassified from AOCI, net of income tax 24 ( 6 ) — — 2 20

Balance at September 30, 2024

Balance at March 31, 2025

$ ( 4,379 ) $ 352 $ ( 1,625 ) $ 1,027 $ ( 45 ) $ ( 4,670 )

Brighthouse Financial, Inc.

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

Equity (continued)

Nine Months Ended September 30, 2023

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

Gains (Losses)

on Derivatives Changes in Nonperformance Risk on Market Risk Benefits Changes in Discount Rates on the Liability for Future Policy Benefits Other (2) Total

Three Months Ended March 31, 2024

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

Changes in Nonperformance Risk on Market Risk Benefits Changes in Discount Rates on the Liability for Future Policy Benefits Other (2) Total

(In millions)

7 unchanged sentences

Amounts reclassified from AOCI, net of income tax 29 ( 2 ) — — 1 28

Balance at September 30, 2023

Balance at March 31, 2024

$ ( 4,937 ) $ 317 $ ( 1,711 ) $ 969 $ ( 51 ) $ ( 5,413 )

4 unchanged sentences

These income tax effects are released from AOCI when the related activity is reclassified into results from operations.

Brighthouse Financial, Inc.

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

Equity (continued)

Information regarding amounts reclassified out of each component of AOCI was as follows:

AOCI Components Amounts Reclassified from AOCI Consolidated Statements of Operations and Comprehensive Income (Loss) Locations

AOCI Components Amounts Reclassified from AOCI

Consolidated Statements of Operations and Comprehensive Income (Loss) Locations

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

(In millions)

18 unchanged sentences

Total reclassifications, net of income tax $ ( 20 ) $ ( 28 )

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited)

Other Revenues and Other Expenses

6 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 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 revenues included 12b-1 fees of $ 65 million and $ 67 million for the three months ended March 31, 2025 and 2024, respectively, of which substantially all were reported in the Annuities segment.

Brighthouse Financial, Inc.

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

Other Revenues and Other Expenses (continued)

Other Expenses

1 unchanged sentence

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

(In millions)

6 unchanged sentences

Interest expense on debt 38 38

Other 17 20 67 55

Total other expenses $ 493 $ 507

1 unchanged sentence

See Note 6 for additional information on the capitalization of DAC.

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited)

Earnings Per Common Share

1 unchanged sentence

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

(In millions, except share and per share data)

6 unchanged sentences

Diluted $ ( 5.04 ) $ ( 8.22 )

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.

For both the three months ended March 31, 2025 and 2024, 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.

Brighthouse Financial, Inc.

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

Contingencies, Commitments and Guarantees

13 unchanged sentences

Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law.

Brighthouse Financial, Inc.

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

Contingencies, Commitments and Guarantees (continued)

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 September 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 March 31, 2025.

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 September 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 March 31, 2025, 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

6 unchanged sentences

The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters.

Brighthouse Financial, Inc.

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

Contingencies, Commitments and Guarantees (continued)

Cost of Insurance Class Actions

1 unchanged sentence

District Court, Northern District of Georgia, Atlanta Division, filed May 8, 2020).

Plaintiff has filed a purported class action lawsuit against Brighthouse Life Insurance Company, a subsidiary of Brighthouse Financial, Inc.

Plaintiff has filed a purported class action lawsuit against Brighthouse Life Insurance Company.

Plaintiff was the owner of a universal life insurance policy issued by Travelers Insurance Company, a predecessor to Brighthouse Life Insurance Company.

8 unchanged sentences

The Company intends to vigorously defend this matter.

Brighthouse Financial, Inc.

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

Contingencies, Commitments and Guarantees (continued)

Lawrence Martin v.

7 unchanged sentences

Brighthouse Life Insurance Company filed a motion to dismiss in June 2021, which was denied in February 2022.

Brighthouse Life Insurance Company of NY, a subsidiary of Brighthouse Life Insurance Company, was initially named as a defendant when the lawsuit was filed, but was dismissed as a defendant, without prejudice, in April 2022.

Brighthouse Life Insurance Company of NY, was initially named as a defendant when the lawsuit was filed, but was dismissed as a defendant, without prejudice, in April 2022.

The Company intends to vigorously defend this matter.

7 unchanged sentences

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 court dismissed claims for injunctive relief against BHF but denied the remainder of a motion to dismiss based on plaintiff’s lack of standing.

BHF intends to vigorously defend this matter.

1 unchanged sentence

Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations.

Brighthouse Financial, Inc.

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

Contingencies, Commitments and Guarantees (continued)

It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings.

8 unchanged sentences

On a quarterly basis, the Company reviews relevant information with respect to other loss contingencies and, when applicable, updates its accruals, disclosures and estimates of reasonably possible losses or estimated ranges of loss based on such reviews.

Brighthouse Financial, Inc.

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

Contingencies, Commitments and Guarantees (continued)

The Company’s tax-related matters have involved disputes with taxing authorities, ongoing audits, evaluation of filing positions and any potential assessments related thereto.

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 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.

As of March 31, 2025, 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 $ 100 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 $ 408 million and $ 377 million at September 30, 2024 and December 31, 2023, respectively.

The amounts of these mortgage loan commitments were $ 249 million and $ 271 million at March 31, 2025 and December 31, 2024, 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 $ 1.6 billion and $ 1.4 billion at September 30, 2024 and December 31, 2023, respectively.

The amounts of these unfunded commitments were $ 1.6 billion and $ 1.7 billion at March 31, 2025 and December 31, 2024, respectively.

Brighthouse Financial, Inc.

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

Contingencies, Commitments and Guarantees (continued)

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.

In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company.

In the context of reinsurance, acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company.

In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits.

These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation.

In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation with a cumulative maximum of up to $ 83 million, while in other cases such limitations are not specified or applicable.

In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation with a cumulative maximum of $ 83 million, while in other cases such limitations are not specified or applicable.

Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future.

3 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 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 .

The Company did no t have any liabilities recorded for indemnities, guarantees and commitments at both March 31, 2025 and December 31, 2024 .

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