What changed in this filing

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Item 1. Financial Statements

2025-08-08 compared with 2025-05-09 · 351 added, 144 removed, 1665 unchanged (23% of the section changed)

2 unchanged sentences

Interim Condensed Consolidated Balance Sheets

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

June 30, 2025 (Unaudited) and December 31, 2024

(In millions, except share and per share data)

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

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

54 unchanged sentences

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

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

For the Three Months and Six Months Ended June 30, 2025 and 2024 (Unaudited)

(In millions, except per share data)

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Premiums $ 166 $ 181 $ 352 $ 383

6 unchanged sentences

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

711 642 1,360 1,610

Interest credited to policyholder account balances 537 509 1,098 1,011

21 unchanged sentences

Interim Condensed Consolidated Statements of Equity

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

For the Three Months and Six Months Ended June 30, 2025 and 2024 (Unaudited)

(In millions)

4 unchanged sentences

Share-based compensation — 38 ( 13 ) 25 25

— 38 ( 13 ) 25 25

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

( 26 ) ( 26 ) ( 26 )

Change in noncontrolling interests — ( 2 ) ( 2 )

Net income (loss) ( 268 ) ( 268 ) 2 ( 266 )

( 268 ) ( 268 ) 2 ( 266 )

Other comprehensive income (loss), net of income tax 608 608 608

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

Treasury stock acquired in connection with share repurchases ( 43 ) ( 43 ) ( 43 )

Share-based compensation — 4 4 4

Dividends on preferred stock ( 25 ) ( 25 ) ( 25 )

Change in noncontrolling interests — — —

Net income (loss) 85 85 — 85

Other comprehensive income (loss), net of income tax 413 413 413

Balance at June 30, 2025 $ — $ 1 $ 13,918 $ ( 1,302 ) $ ( 2,687 ) $ ( 4,257 ) $ 5,673 $ 65 $ 5,738

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

8 unchanged sentences

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

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

Share-based compensation — 8 ( 1 ) 7 7

Dividends on preferred stock ( 25 ) ( 25 ) ( 25 )

Change in noncontrolling interests — — —

Net income (loss) 34 34 — 34

Other comprehensive income (loss), net of income tax ( 6 ) ( 6 ) ( 6 )

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

See accompanying notes to the interim condensed consolidated financial statements.

1 unchanged sentence

Interim Condensed Consolidated Statements of Cash Flows

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

For the Six Months Ended June 30, 2025 and 2024 (Unaudited)

(In millions)

Three Months Ended

Six Months Ended

Net cash provided by (used in) operating activities $ 145 $ ( 196 )

18 unchanged sentences

Net cash provided by (used in) investing activities

675 ( 1,707 )

Cash flows from financing activities

3 unchanged sentences

Net change in payables for collateral under securities loaned and other transactions 103 236

Long-term debt repaid ( 1 ) ( 1 )

Dividends on preferred stock ( 51 ) ( 51 )

37 unchanged sentences

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.

In connection with the establishment of a trading portfolio comprised of fixed income securities (classified as “trading securities” under GAAP), 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.

5 unchanged sentences

The Company considers the applicability and impact of all ASUs.

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

There were no significant ASUs adopted during the period ended June 30, 2025.

Brighthouse Financial, Inc.

11 unchanged sentences

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 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.

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

This ASU has no impact on the Company’s consolidated financial statements but will result in expanded disclosures in the Notes to the Consolidated Financial Statements.

Segment Information

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

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

and Corporate & Other.

5 unchanged sentences

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.

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

Financial Measure and Segment Accounting Policies

3 unchanged sentences

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.

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.

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 (classified as “trading securities” under GAAP).

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

16 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 Annuities, Life and Run-off 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 the Corporate & Other segment.

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

3 unchanged sentences

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

Three Months Ended June 30, 2025

Annuities Life Run-off Corporate & Other Total

24 unchanged sentences

Segment Information (continued)

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Annuities Life Run-off Corporate & Other Total

21 unchanged sentences

Interest revenue $ 702 $ 121 $ 315 $ 178

Brighthouse Financial, Inc.

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

Segment Information (continued)

Six Months Ended June 30, 2025

Annuities Life Run-off Corporate & Other Total

(In millions)

Total revenues $ 1,792 $ 550 $ 577 $ 342 $ 3,261

Revenues excluded from adjusted earnings (1) ( 883 ) ( 24 ) ( 172 ) 30

Segment expenses:

Policyholder benefits and claims 208 400 752 —

Interest credited to policyholder account balances, excluding market value adjustments 712 55 118 209

Amortization of DAC and VOBA 253 44 — —

Interest expense on debt — — — 76

Other expenses (2) 705 98 65 31

Provision for income tax expense (benefit) 151 ( 6 ) ( 39 ) ( 8 )

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

Preferred stock dividends — — — 51

Adjusted earnings (loss) $ 646 $ ( 17 ) $ ( 147 ) $ ( 49 ) 433

Adjustments for:

Net investment gains (losses) ( 122 )

Investment gains (losses) on trading securities —

Net derivative gains (losses), excluding investment hedge adjustments of $ 1

Change in market risk benefits 208

Market value adjustments ( 4 )

Provision for income tax (expense) benefit 178

Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ ( 234 )

Interest revenue $ 1,510 $ 204 $ 555 $ 314

Brighthouse Financial, Inc.

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

Segment Information (continued)

Six Months Ended June 30, 2024

Annuities Life Run-off Corporate & Other Total

(In millions)

Total revenues $ 200 $ 500 $ 464 $ 337 $ 1,501

Revenues excluded from adjusted earnings (1) ( 2,418 ) ( 14 ) ( 321 ) ( 14 )

Segment expenses:

Policyholder benefits and claims 254 305 1,051 —

Interest credited to policyholder account balances, excluding market value adjustments 631 50 122 218

Amortization of DAC and VOBA 253 48 — —

Interest expense on debt — — — 76

Other expenses (2) 685 105 81 28

Provision for income tax expense (benefit) 150 — ( 98 ) 8

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

Preferred stock dividends — — — 51

Adjusted earnings (loss) $ 645 $ 6 $ ( 371 ) $ ( 32 ) 248

Adjustments for:

Net investment gains (losses) ( 162 )

Investment gains (losses) on trading securities —

Net derivative gains (losses), excluding investment hedge adjustments of $ 22

Change in market risk benefits 1,796

Market value adjustments 10

Provision for income tax (expense) benefit 203

Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ ( 510 )

Interest revenue $ 1,378 $ 228 $ 631 $ 346

_______________

2 unchanged sentences

Total assets by segment were as follows at:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(In millions)

9 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

(In millions)

Annuity products

$ 577 $ 613 $ 1,168 $ 1,241

Life insurance products 280 287 556 435

2 unchanged sentences

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.

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 and six months ended June 30, 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:

Three Months Ended March 31,

Six Months Ended June 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

39 unchanged sentences

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

Three Months Ended

Six Months Ended

(Dollars in millions)

26 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 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.

Participating whole life insurance represented 3 % of the Company’s life insurance in-force at both June 30, 2025 and 2024, and 39 % and 41 % of gross traditional life insurance premiums for the six months ended June 30, 2025 and 2024, respectively.

Brighthouse Financial, Inc.

5 unchanged sentences

(Dollars in millions)

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

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

8 unchanged sentences

Weighted-average crediting rate (2) 2.04 % 1.34 % 0.96 % 1.93 % 1.64 % 1.45 %

Three Months Ended March 31, 2024

Six Months Ended June 30, 2024

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

24 unchanged sentences

(In millions)

March 31, 2025

June 30, 2025

Annuities (1):

54 unchanged sentences

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

Three Months Ended

Six Months Ended

(Dollars in millions)

15 unchanged sentences

_______________

(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.

(1) Amounts represent the sum of MRB assets and MRB liabilities presented on the consolidated balance sheets at June 30, 2025 and 2024, with the exception of $ 22 million and $ 0 , respectively, of index-linked annuities not included in this table.

Separate Accounts

1 unchanged sentence

Information regarding separate account liabilities was as follows:

Three Months Ended March 31,

Six Months Ended June 30,

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

19 unchanged sentences

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

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(In millions)

9 unchanged sentences

(In millions)

March 31, 2025

June 30, 2025

Account balances reported in the preceding rollforward tables:

4 unchanged sentences

Cash surrender value $ 8,642 $ 80,039 $ 49,450 $ 14,509 $ 4,195 $ 2,845

March 31, 2024

June 30, 2024

Account balances reported in the preceding rollforward tables:

13 unchanged sentences

(In millions)

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

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

7 unchanged sentences

Balance, end of period $ 2,295 $ 171 $ 1,522 $ 290 $ 358

Three Months Ended March 31, 2024

Six Months Ended June 30, 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:

Three Months Ended March 31,

Six Months Ended June 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:

Three Months Ended March 31,

Six Months Ended June 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:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Amortized Cost

17 unchanged sentences

Total fixed maturity securities $ 86,762 $ 67 $ 786 $ 6,646 $ 80,835 $ 87,603 $ 81 $ 498 $ 7,965 $ 80,055

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.

The Company held non-income producing fixed maturity securities with an estimated fair value of $ 20 million and $ 30 million at June 30, 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 March 31, 2025:

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at June 30, 2025:

Due in One Year or Less

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:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

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

41 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 $ 703 million and $ 672 million at March 31, 2025 and December 31, 2024, respectively, and is included in accrued investment income.

The accrued interest receivable on fixed maturity securities totaled $ 669 million and $ 672 million at June 30, 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 $ 56 million, relating to 18 securities, at March 31, 2025.

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 $ 67 million, relating to 19 securities, at June 30, 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)

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

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

4 unchanged sentences

Balance, end of period $ 26 $ 35 $ 3 $ 3 $ 67

Three Months Ended March 31, 2024

Six Months Ended June 30, 2024

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

5 unchanged sentences

_______________

(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 .

(1) The Company recorded total write-offs of $ 33 million and $ 1 million for the six months ended June 30, 2025 and 2024, respectively.

Mortgage Loans

1 unchanged sentence

Mortgage loans are summarized as follows at:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(Dollars in millions)

6 unchanged sentences

_______________

(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.

(1) Purchases of mortgage loans from third parties were $ 379 million and $ 557 million for the three months and six months ended June 30, 2025, respectively, and $ 188 million and $ 349 million for the three months and six months ended June 30, 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 $ 126 million and $ 132 million at March 31, 2025 and December 31, 2024, respectively.

The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $ 130 million and $ 132 million at June 30, 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)

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

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

2 unchanged sentences

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

Three Months Ended March 31, 2024

Six Months Ended June 30, 2024

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

Current period provision 38 ( 1 ) ( 11 ) 26

Charge-offs, net of recoveries ( 8 ) — — ( 8 )

Balance, end of period $ 99 $ 18 $ 38 $ 155

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)

March 31, 2025

June 30, 2025

Commercial mortgage loans

49 unchanged sentences

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

March 31, 2025 December 31, 2024

Amortized Cost % of Total

June 30, 2025 December 31, 2024

Amortized Cost % of

(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 99 % of all mortgage loans classified as performing at both March 31, 2025 and December 31, 2024.

The Company has a high-quality, well-performing mortgage loan portfolio, with 99 % of all mortgage loans classified as performing at both June 30, 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:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Commercial Agricultural Residential Total Commercial Agricultural Residential Total

11 unchanged sentences

(In millions)

March 31, 2025

June 30, 2025

$ 162 $ 9 $ 109 $ 280

2 unchanged sentences

_______________

(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.

(1) The Company had $ 9 million and $ 3 million of mortgage loans in nonaccrual status for which there was no related allowance for credit losses at June 30, 2025 and December 31, 2024, respectively.

Current period investment income on mortgage loans in nonaccrual status was $ 3 million and $ 1 million for the six months ended June 30, 2025 and 2024, 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 three months ended March 31, 2025 and 2024.

The Company did not have a significant amount of mortgage loans modified during both the six months ended June 30, 2025 and 2024.

Other Invested Assets

8 unchanged sentences

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

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(In millions)

8 unchanged sentences

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

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

(In millions)

4 unchanged sentences

Deferred income tax benefit (expense) ( 252 )

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

Balance at June 30, 2025 $ ( 3,819 )

Change in net unrealized investment gains (losses) $ 947

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 March 31, 2025 and December 31, 2024.

government and its agencies, at both June 30, 2025 and December 31, 2024.

Securities Lending

Elements of the securities lending program are presented below at:

March 31, 2025 December 31, 2024

June 30, 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:

March 31, 2025 December 31, 2024

June 30, 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 March 31, 2025 was $ 518 million, primarily comprised of U.S.

The estimated fair value of the securities on loan related to the cash collateral on open at June 30, 2025 was $ 444 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.

The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including agency RMBS, ABS, U.S.

and foreign corporate securities, U.S.

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 March 31, 2025.

government and agency securities, U.S.

and foreign corporate 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, 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:

March 31, 2025 December 31, 2024

June 30, 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 $ 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.

(1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $ 76 million and $ 68 million of the assets on deposit represents restricted cash and cash equivalents at June 30, 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 $ 616 million and $ 334 million of the assets held in trust balance represents restricted cash and cash equivalents at June 30, 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 $ 223 million and $ 222 million at redemption value at March 31, 2025 and December 31, 2024, respectively.

In addition, the Company’s investment in FHLB common stock, which is considered restricted until redeemed by the issuer, was $ 218 million and $ 222 million at redemption value at June 30, 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 March 31, 2025 or December 31, 2024.

There were no material VIEs for which the Company has concluded that it is the primary beneficiary at either June 30, 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:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Carrying Amount

29 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

(In millions)

6 unchanged sentences

Limited partnerships and LLCs (2)

80 99 151 173

Cash, cash equivalents and short-term investments 63 63 135 124

Other 25 26 52 51

Total investment income 1,366 1,394 2,746 2,734

2 unchanged sentences

_______________

(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.

(1) Investment gains (losses) were ($ 6 ) million and less than $ 1 million related to trading securities still held for the three months and six months ended June 30, 2025, respectively.

There were no investment gains (losses) related to trading securities still held for the three months and six months ended June 30, 2024.

(2) Includes net investment income pertaining to other limited partnership interests of $ 63 million and $ 119 million for the three months and six months ended June 30, 2025, respectively, and $ 102 million and $ 195 million for the three months and six months ended June 30, 2024, respectively.

Net Investment Gains (Losses)

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

(In millions)

5 unchanged sentences

Total net investment gains (losses) $ ( 39 ) $ ( 120 ) $ ( 122 ) $ ( 162 )

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.

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, 2025 and 2024.

Brighthouse Financial, Inc.

5 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

(In millions)

9 unchanged sentences

• Interest rate derivatives:

swaps, floors, caps, futures, swaptions and forwards;

swaps, floors, caps, futures, options and forwards;

• Foreign currency exchange rate derivatives:

1 unchanged sentence

• Equity market derivatives:

futures, options, total return swaps and hybrid options;

futures, options and total return swaps;

• Credit derivatives:

6 unchanged sentences

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

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Primary Underlying Risk Exposure Gross Notional Amount

24 unchanged sentences

Total $ 289,546 $ 7,803 $ 7,398 $ 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 March 31, 2025 and December 31, 2024.

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, 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 March 31, 2025

Three Months Ended June 30, 2025

Derivatives Designated as Hedging Instruments:

11 unchanged sentences

Total $ ( 1,250 ) $ 13 $ 8 $ 1 $ ( 256 )

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Derivatives Designated as Hedging Instruments:

11 unchanged sentences

Total $ ( 655 ) $ ( 7 ) $ 14 $ 2 $ 44

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.

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)

Six Months Ended June 30, 2025

Derivatives Designated as Hedging Instruments:

Cash flow hedges:

Interest rate $ 3 $ — $ 1 $ 2 $ ( 12 )

Foreign currency exchange rate 3 ( 3 ) 21 — ( 261 )

Total cash flow hedges 6 ( 3 ) 22 2 ( 273 )

Derivatives Not Designated or Not Qualifying as Hedging Instruments:

Interest rate 2 — — — —

Foreign currency exchange rate ( 78 ) 14 — — —

Credit 7 — — — —

Equity market 110 — — — —

Embedded ( 984 ) — — — —

Total non-qualifying hedges ( 943 ) 14 — — —

Total $ ( 937 ) $ 11 $ 22 $ 2 $ ( 273 )

Six Months Ended June 30, 2024

Derivatives Designated as Hedging Instruments:

Cash flow hedges:

Interest rate $ 3 $ — $ 1 $ 4 $ 12

Foreign currency exchange rate 1 ( 2 ) 26 — 85

Total cash flow hedges 4 ( 2 ) 27 4 97

Derivatives Not Designated or Not Qualifying as Hedging Instruments:

Interest rate ( 1,101 ) — — — —

Foreign currency exchange rate 45 ( 9 ) — — —

Credit 7 — — — —

Equity market 1,073 — — — —

Embedded ( 2,600 ) — — — —

Total non-qualifying hedges ( 2,576 ) ( 9 ) — — —

Total $ ( 2,572 ) $ ( 11 ) $ 27 $ 4 $ 97

At June 30, 2025 and December 31, 2024, the Company held no qualified derivatives hedging exposure to future cash flows for forecasted asset purchases.

At June 30, 2025 and December 31, 2024, the balance in AOCI associated with cash flow hedges was $ 189 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:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

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

31 unchanged sentences

(In millions)

March 31, 2025

June 30, 2025

Derivative assets $ 7,458 $ ( 6,143 ) $ ( 613 ) $ 702 $ ( 684 ) $ 18

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:

March 31, 2025 December 31, 2024

June 30, 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.

March 31, 2025

June 30, 2025

Fair Value Hierarchy Total Estimated Fair Value

94 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 three months ended March 31, 2025.

The Company did not have significant price adjustments during the six months ended June 30, 2025.

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:

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

June 30, 2025 December 31, 2024 Impact of Increase in Input on Estimated Fair Value

Valuation Techniques Significant Unobservable Inputs

48 unchanged sentences

Fixed Maturity Securities

Corporate (1) Structured Securities Foreign

Government Trading

Securities Short-term

Investments Net

Derivatives (2) Embedded Derivatives on Index-Linked Annuities

(In millions)

Three Months Ended June 30, 2025

Balance, beginning of period

$ 666 $ 340 $ 22 $ — $ 14 $ 2 $ 9 $ ( 9,925 )

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

( 38 ) — — — — — ( 1 ) ( 2,161 )

Total realized/unrealized gains (losses) included in AOCI

37 ( 3 ) 2 — — — — —

Purchases (5)

63 127 — 3 — — — —

( 10 ) ( 10 ) — — ( 8 ) ( 2 ) — —

Issuances (5)

— — — — — — — —

Settlements (5)

— — — — — — — 520

Transfers into Level 3 (6)

54 — — — — — — —

Transfers out of Level 3 (6)

( 4 ) ( 48 ) — — — — — —

Balance, end of period $ 768 $ 406 $ 24 $ 3 $ 6 $ — $ 8 $ ( 11,566 )

Three Months Ended June 30, 2024

Balance, beginning of period

$ 1,267 $ 482 $ 21 $ — $ 25 $ — $ 11 $ ( 9,941 )

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

( 15 ) — — — ( 1 ) — ( 1 ) ( 714 )

Total realized/unrealized gains (losses) included in AOCI

( 2 ) 2 — — — — — —

Purchases (5)

199 129 — — — — — —

( 43 ) ( 26 ) — — — — — —

Issuances (5)

— — — — — — — —

Settlements (5)

— — — — — — — 72

Transfers into Level 3 (6)

41 — — — — — — —

Transfers out of Level 3 (6)

( 82 ) ( 81 ) — — — — — —

Balance, end of period $ 1,365 $ 506 $ 21 $ — $ 24 $ — $ 10 $ ( 10,583 )

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2025 (7)

$ ( 5 ) $ — $ — $ — $ — $ — $ ( 1 ) $ ( 2,430 )

Changes in unrealized gains (losses) included in OCI for the instruments still held as of June 30, 2025 (7)

$ 4 $ 7 $ 2 $ — $ — $ — $ ( 1 ) $ —

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

$ ( 15 ) $ — $ — $ — $ ( 2 ) $ — $ ( 1 ) $ ( 881 )

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

$ ( 2 ) $ 1 $ — $ — $ — $ — $ — $ —

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

Trading Securities

Equity Securities

2 unchanged sentences

(In millions)

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Balance, beginning of period

16 unchanged sentences

Balance, end of period $ 768 $ 406 $ 24 $ 3 $ 6 $ — $ 8 $ ( 11,566 )

Three Months Ended March 31, 2024

Six Months Ended June 30, 2024

Balance, beginning of period

16 unchanged sentences

Balance, end of period $ 1,365 $ 506 $ 21 $ — $ 24 $ — $ 10 $ ( 10,583 )

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

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2025 (7)

$ ( 7 ) $ — $ — $ — $ — $ — $ ( 1 ) $ ( 1,480 )

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

Changes in unrealized gains (losses) included in OCI for the instruments still held as of June 30, 2025 (7)

$ 11 $ ( 5 ) $ 3 $ — $ — $ — $ — $ —

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

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

$ ( 18 ) $ — $ — $ — $ ( 2 ) $ — $ ( 3 ) $ ( 2,921 )

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

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

$ ( 19 ) $ — $ — $ — $ — $ — $ — $ —

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:

March 31, 2025

June 30, 2025

Fair Value Hierarchy

27 unchanged sentences

Preferred Stock

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

Preferred stock shares authorized, issued and outstanding were as follows at both June 30, 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 March 31,

Series Per Share Aggregate Per Share Aggregate

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

2025 2024 2025 2024

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

(In millions, except per share data)

5 unchanged sentences

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.

During the six months ended June 30, 2025 and 2024, BHF repurchased 1,844,396 and 2,634,041 shares, respectively, of its common stock through open market purchases, pursuant to Rule 10b5-1 plans, for $ 102 million and $ 126 million, respectively.

At June 30, 2025, BHF had $ 441 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 March 31, 2025

Three Months Ended June 30, 2025

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

1 unchanged sentence

(In millions)

Balance at December 31, 2024

Balance at March 31, 2025

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

5 unchanged sentences

Amounts reclassified from AOCI, net of income tax 7 — — — — 7

Balance at June 30, 2025

$ ( 3,968 ) $ 149 $ ( 1,404 ) $ 986 $ ( 20 ) $ ( 4,257 )

Three Months Ended June 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 March 31, 2024

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

Three Months Ended March 31, 2024

OCI before reclassifications ( 475 ) 44 110 233 ( 2 ) ( 90 )

Deferred income tax benefit (expense) (3) 100 ( 9 ) ( 23 ) ( 49 ) — 19

AOCI before reclassifications, net of income tax ( 5,312 ) 352 ( 1,624 ) 1,153 ( 53 ) ( 5,484 )

Amounts reclassified from AOCI 85 ( 2 ) — — 1 84

Deferred income tax benefit (expense) (3) ( 18 ) — — — ( 1 ) ( 19 )

Amounts reclassified from AOCI, net of income tax 67 ( 2 ) — — — 65

Balance at June 30, 2024 $ ( 5,245 ) $ 350 $ ( 1,624 ) $ 1,153 $ ( 53 ) $ ( 5,419 )

Six Months Ended June 30, 2025

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

9 unchanged sentences

Amounts reclassified from AOCI, net of income tax 31 ( 6 ) — — 2 27

Balance at March 31, 2024

Balance at June 30, 2025

$ ( 3,968 ) $ 149 $ ( 1,404 ) $ 986 $ ( 20 ) $ ( 4,257 )

Brighthouse Financial, Inc.

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

Equity (continued)

Six Months Ended June 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 December 31, 2023

$ ( 4,317 ) $ 277 $ ( 1,881 ) $ 720 $ ( 45 ) $ ( 5,246 )

OCI before reclassifications ( 1,295 ) 97 325 548 ( 11 ) ( 336 )

Deferred income tax benefit (expense) (3) 271 ( 20 ) ( 68 ) ( 115 ) 2 70

AOCI before reclassifications, net of income tax ( 5,341 ) 354 ( 1,624 ) 1,153 ( 54 ) ( 5,512 )

Amounts reclassified from AOCI 121 ( 5 ) — — 2 118

Deferred income tax benefit (expense) (3) ( 25 ) 1 — — ( 1 ) ( 25 )

Amounts reclassified from AOCI, net of income tax 96 ( 4 ) — — 1 93

Balance at June 30, 2024

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

__________________

(1) See Note 7 for information on offsets to investments related to future policy benefits.

2 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

June 30, Six Months Ended

2025 2024 2025 2024

(In millions)

18 unchanged sentences

Total reclassifications, net of income tax $ ( 7 ) $ ( 65 ) $ ( 27 ) $ ( 93 )

Brighthouse Financial, Inc.

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

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 $ 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 revenues included 12b-1 fees of $ 64 million and $ 129 million for the three months and six months ended June 30, 2025, respectively, and $ 69 million and $ 136 million for the three months and six months ended June 30, 2024, respectively, of which substantially all were reported in the Annuities segment.

Other Expenses

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

(In millions)

6 unchanged sentences

Interest expense on debt 38 38 76 76

Other 18 12 37 50

Total other expenses $ 482 $ 468 $ 975 $ 975

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) (continued)

Earnings Per Common Share

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

(In millions, except share and per share data)

6 unchanged sentences

Diluted $ 1.02 $ 0.12 $ ( 4.06 ) $ ( 8.17 )

For both the three months ended March 31, 2025 and 2024, basic loss per common share equaled diluted loss per common share.

For the three months ended June 30, 2025, weighted average shares used for calculating diluted earnings per common share includes 166,769 shares underlying in-the-money stock options.

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 both the six months ended June 30, 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

8 unchanged sentences

The Company also receives and responds to subpoenas or other inquiries seeking a broad range of information from various state and federal regulators, agencies and officials.

The issues involved in information requests and regulatory matters vary widely, but can include inquiries or investigations concerning the Company’s compliance with applicable insurance and other laws and regulations.

The issues involved in information requests and regulatory matters vary widely and can include inquiries or investigations concerning the Company’s compliance with applicable insurance and other laws and regulations.

The Company cooperates in these inquiries.

2 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 March 31, 2025.

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, 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 March 31, 2025, 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 June 30, 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

23 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)

MOVEit Data Security Incident Litigation

10 unchanged sentences

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.

10 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 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.

As of June 30, 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.

During the first quarter of 2024, an arbitration panel ruled in favor of a reinsurer seeking a premium rate increase retroactive to September 2019 resulting in a $ 187 million loss, of which $ 167 million was reported in universal life and investment product-type policy fees and $ 20 million was reported in other expenses.

Brighthouse Financial, Inc.

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

Contingencies, Commitments and Guarantees (continued)

Mortgage Loan Commitments

The Company commits to lend funds under mortgage loan commitments.

The amounts of these mortgage loan commitments were $ 249 million and $ 271 million at March 31, 2025 and December 31, 2024, respectively.

The amounts of these mortgage loan commitments were $ 182 million and $ 271 million at June 30, 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 $ 1.7 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)

The amounts of these unfunded commitments were $ 1.6 billion and $ 1.7 billion at June 30, 2025 and December 31, 2024, 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 did no t have any liabilities recorded for indemnities, guarantees and commitments at both March 31, 2025 and December 31, 2024 .

The Company did no t have any liabilities recorded for indemnities, guarantees and commitments at both June 30, 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