What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-08 compared with 2025-05-09 · 280 added, 120 removed, 947 unchanged (30% of the section changed)

14 unchanged sentences

Securities and Exchange Commission (“SEC”) on February 28, 2025;

and (iii) our current reports on Form 8-K filed in 2025.

(iii) our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 (the “First Quarter Form 10-Q”) filed with the SEC on May 9, 2025;

and (iv) our current reports on Form 8-K filed in 2025.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to help the reader understand the results of operations, financial condition and cash flows of Brighthouse Financial for the periods indicated.

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This section also refers to certain other terms used to describe our insurance business and financial and operating metrics but is not intended to be exhaustive.

Our Results of Operations discussion and analysis presents a review for the three months ended March 31, 2025 and 2024 and period-over-period comparisons between these periods.

Our Results of Operations discussion and analysis presents a review for the three months and six months ended June 30, 2025 and 2024 and period-over-period, as well as year-over-year, comparisons between these periods.

Executive Summary

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Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

(In millions)

8 unchanged sentences

$ 198 $ 346 $ 433 $ 248

__________________

(1) We use the term “net income (loss) available to shareholders” to refer to “net income (loss) available to Brighthouse Financial, Inc.’s common shareholders” and “adjusted loss” to refer to negative adjusted earnings values throughout the results of operations discussions.

For the three months ended March 31, 2025, we had net loss available to shareholders of $294 million and adjusted earnings of $235 million compared to net loss available to shareholders of $519 million and an adjusted loss of $98 million for the three months ended March 31, 2024.

Net loss available to shareholders for the three months ended March 31, 2025 primarily reflects net unfavorable changes in the estimated fair value of our variable annuity guaranteed benefit riders due to market factors, net investment losses on mortgage loans and net investment losses on sales of fixed maturity securities.

These unfavorable impacts were partially offset by favorable pre-tax adjusted earnings and a favorable change in the estimated fair value of freestanding interest rate derivatives we use to hedge our universal life with secondary guarantees (“ULSG”) business resulting from decreasing long-term interest rates.

For the three months ended June 30, 2025, we had net income available to shareholders of $60 million and adjusted earnings of $198 million compared to net income available to shareholders of $9 million and adjusted earnings of $346 million for the three months ended June 30, 2024.

Net income available to shareholders for the three months ended June 30, 2025 primarily reflects favorable pre-tax adjusted earnings and net favorable changes in the estimated fair value of our variable annuity guaranteed benefit riders due to market factors.

The favorable impacts were partially offset by an unfavorable change in the estimated fair value of freestanding interest rate derivatives we use to hedge our universal life with secondary guarantees (“ULSG”) business resulting from increasing long-term interest rates, the weakening of the U.S.

dollar unfavorably impacting foreign currency forwards and swaps, net investment losses on mortgage loans and net investment losses on sales of fixed maturity securities.

For the six months ended June 30, 2025, we had a net loss available to shareholders of $234 million and adjusted earnings of $433 million compared to a net loss available to shareholders of $510 million and adjusted earnings of $248 million for the six months ended June 30, 2024.

The net loss available to shareholders for the six months ended June 30, 2025 primarily reflects net unfavorable changes in the estimated fair value of our variable annuity guaranteed benefit riders due to market factors, an unfavorable change in the estimated fair value of freestanding interest rate derivatives we use to hedge our ULSG business, the weakening of the U.S.

dollar unfavorably impacting foreign currency forwards and swaps, net investment losses on mortgage loans and net investment losses on sales of fixed maturity securities.

These unfavorable impacts were partially offset by favorable pre-tax adjusted earnings.

See “— Non-GAAP Financial Disclosures.” See “— Results of Operations” for a detailed discussion of our results.

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Where these trends or uncertainties are specific to a particular aspect of our business, we often include such a discussion under the relevant caption of this Management’s Discussion and Analysis of Financial Condition and Results of Operations, as part of our broader analysis of that area of our business.

Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends and Uncertainties” included in our 2024 Annual Report, as amended or supplemented herein, for a comprehensive discussion of some of the key general trends and uncertainties that have influenced the development of our business and our historical financial performance and that we believe will continue to influence our business and results of operations in the future.

Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends and Uncertainties” included in our 2024 Annual Report, as amended or supplemented by our First Quarter Form 10-Q and herein, for a comprehensive discussion of some of the key general trends and uncertainties that have influenced the development of our business and our historical financial performance and that we believe will continue to influence our business and results of operations in the future.

Financial and Economic Environment

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Insurance premium growth and demand for our products is impacted by the general health of U.S.

economic activity.

A sustained or material increase in inflation could also affect our business in several ways.

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Furthermore, some of our operations, products and services are subject to the Employee Retirement Income Security Act of 1974, consumer protection laws, securities, broker-dealer and investment advisor regulations, as well as environmental and unclaimed property laws and regulations.

See “Business — Regulation,” as well as “Risk Factors — Regulatory and Legal Risks” included in our 2024 Annual Report, as amended or supplemented by our subsequent quarterly reports under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends and Uncertainties — Regulatory Developments.”

See “Business — Regulation,” as well as “Risk Factors — Regulatory and Legal Risks” included in our 2024 Annual Report, as amended or supplemented by our quarterly reports under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends and Uncertainties — Regulatory Developments.”

Summary of Critical Accounting Estimates

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Adjusted earnings, which may be positive or negative, focuses on our 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.

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Results of Operations

Consolidated Results for the Three Months Ended March 31, 2025 and 2024

Consolidated Results for the Three Months and Six Months Ended June 30, 2025 and 2024

Unless otherwise noted, all amounts in the following discussions of our results of operations are stated before income tax except for adjusted earnings, which are presented net of income tax.

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

(In millions)

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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

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Net income (loss) attributable to Brighthouse Financial, Inc.

85 34 (183) (459)

Preferred stock dividends 25 25 51 51

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Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

(In millions)

5 unchanged sentences

Pre-tax adjusted earnings (loss), less net income (loss) attributable to noncontrolling interests and preferred stock dividends

244 418 531 308

Income (loss) available to shareholders before provision for income tax 68 (11) (314) (653)

2 unchanged sentences

$ 60 $ 9 $ (234) $ (510)

Three Months Ended March 31, 2025 Compared with the Three Months Ended March 31, 2024

Loss available to shareholders before provision for income tax was $382 million ($294 million, net of income tax), a lower loss of $260 million ($225 million, net of income tax) from loss available to shareholders before provision for income tax of $642 million ($519 million, net of income tax) in the prior period.

Three Months Ended June 30, 2025 Compared with the Three Months Ended June 30, 2024

Income available to shareholders before provision for income tax was $68 million ($60 million, net of income tax), an increase of $79 million ($51 million, net of income tax) from loss available to shareholders before provision for income tax of $11 million ($9 million, net of income tax) in the prior period.

The increase in income before provision for income tax was driven by the following favorable items:

• gains from variable annuity guaranteed benefit riders, see “— Annuity Guaranteed Benefits and Shield Annuity Liabilities for the Three Months and Six Months Ended June 30, 2025 and 2024”;

• net investment gains (losses) reflecting lower net losses on sales of fixed maturity securities.

The increase in income before provision for income taxes was partially offset by the following unfavorable items:

• lower pre-tax adjusted earnings, as discussed in greater detail below;

• the impact of long-term interest rates on interest rate derivatives used to manage interest rate exposure in our ULSG business, as the long-term interest rate increased in the current period, resulting in a loss of $154 million, and increased in the prior period, resulting in a loss of $97 million;

• the weakening of the U.S.

dollar more in the current period than the prior period, unfavorably impacting foreign currency forwards and swaps.

The provision for income tax, expressed as a percentage of income (loss) before provision for income tax, resulted in a higher effective tax rate in the current period compared to the prior period.

Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction and tax credits.

Six Months Ended June 30, 2025 Compared with the Six Months Ended June 30, 2024

The loss available to shareholders before provision for income tax was $314 million ($234 million, net of income tax), a lower loss of $339 million ($276 million, net of income tax) from loss available to shareholders before provision for income tax of $653 million ($510 million, net of income tax) in the prior period.

The lower loss before provision for income tax was driven by the following favorable items:

• higher pre-tax adjusted earnings, as discussed in greater detail below;

• the impact of long-term interest rates on interest rate derivatives used to manage interest rate exposure in our ULSG business, as the long-term interest rate decreased in the current period, resulting in a gain of $22 million, and increased in the prior period, resulting in a loss of $212 million.

• the impact of long-term interest rates on interest rate derivatives used to manage interest rate exposure in our ULSG business, as the long-term interest rate decreased in the current period, resulting in a loss of $132 million, and increased in the prior period, resulting in a loss of $309 million;

• net investment gains (losses) reflecting lower net losses on sales of fixed maturity securities, partially offset by higher net losses on mortgage loans due to an increase in the allowance for credit losses.

The lower loss before provision for income tax was partially offset by the following unfavorable items:

• higher losses from variable annuity guaranteed benefit riders, see “— Annuity Guaranteed Benefits and Shield Annuity Liabilities for the Three Months Ended March 31, 2025 and 2024”;

• net investment gains (losses) reflecting higher net losses on mortgage loans due to an increase in the allowance for credit losses;

dollar weakening in the current period and strengthening in the prior period, unfavorably impacting foreign currency forwards;

• the net impact of embedded derivatives and equity options we use to hedge our non-variable annuity business, as equity markets decreased in the current period and increased in the prior period.

• the weakening of the U.S.

dollar in the current period and strengthening in the prior period, unfavorably impacting foreign currency forwards and swaps;

• higher losses from variable annuity guaranteed benefit riders, see “— Annuity Guaranteed Benefits and Shield Annuity Liabilities for the Three Months and Six Months Ended June 30, 2025 and 2024.”

The provision for income tax, calculated as a percentage of income (loss) before provision for income tax, resulted in an effective tax rate of 31% in the current period compared to 24% in the prior period.

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The reconciliation of net income (loss) available to shareholders to adjusted earnings (loss) was as follows:

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Annuities Life Run-off Corporate & Other Total

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Investment gains (losses) on trading securities

(6) — — — (6)

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

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$ 332 $ (26) $ (83) $ (25) $ 198

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Annuities Life Run-off Corporate & Other Total

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$ 332 $ 42 $ (30) $ 2 $ 346

Consolidated Results for the Three Months Ended March 31, 2025 and 2024 — Adjusted Earnings (Loss)

Six Months Ended June 30, 2025

Annuities Life Run-off Corporate & Other Total

(In millions)

Net income (loss) available to shareholders $ (29) $ (41) $ (127) $ (37) $ (234)

Provision for income tax expense (benefit) 151 (6) (235) 10 (80)

Income (loss) available to shareholders before provision for income tax 122 (47) (362) (27) (314)

Net investment gains (losses) (123) (4) (22) 27 (122)

Investment gains (losses) on trading securities — — — — —

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

(760) (20) (150) 3 (927)

Change in market risk benefits 208 — — — 208

Market value adjustments — — (4) — (4)

Pre-tax adjusted earnings (loss), less net income (loss) attributable to noncontrolling interests and preferred stock dividends 797 (23) (186) (57) 531

Provision for income tax expense (benefit) 151 (6) (39) (8) 98

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

Six Months Ended June 30, 2024

Annuities Life Run-off Corporate & Other Total

(In millions)

Net income (loss) available to shareholders $ 23 $ (8) $ (142) $ (383) $ (510)

Provision for income tax expense (benefit) 150 — (638) 345 (143)

Income (loss) available to shareholders before provision for income tax

173 (8) (780) (38) (653)

Net investment gains (losses) (105) (23) (21) (13) (162)

Investment gains (losses) on trading securities

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

(2,313) 9 (300) (1) (2,605)

Change in market risk benefits 1,796 — — — 1,796

Market value adjustments — — 10 — 10

Pre-tax adjusted earnings (loss), less net income (loss) attributable to noncontrolling interests and preferred stock dividends

795 6 (469) (24) 308

Provision for income tax expense (benefit) 150 — (98) 8 60

Adjusted earnings (loss)

$ 645 $ 6 $ (371) $ (32) $ 248

Consolidated Results for the Three Months and Six Months Ended June 30, 2025 and 2024 — Adjusted Earnings (Loss)

The components of adjusted earnings (loss) were as follows:

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

(In millions)

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Pre-tax adjusted earnings (loss), less net income (loss) attributable to noncontrolling interests and preferred stock dividends

244 418 531 308

Provision for income tax expense (benefit) 46 72 98 60

Adjusted earnings (loss)

Three Months Ended March 31, 2025 Compared with the Three Months Ended March 31, 2024

$ 198 $ 346 $ 433 $ 248

Three Months Ended June 30, 2025 Compared with the Three Months Ended June 30, 2024

Adjusted earnings were $198 million in the current period, a decrease of $148 million.

Key net unfavorable impacts were:

• higher net costs associated with insurance-related activities due to:

◦ higher claims, net of reinsurance in our Life and Run-off segments;

partially offset by

◦ an increase in income annuity underwriting margins;

• lower net investment spread due to:

◦ higher interest credited to policyholders due to higher account balances;

◦ lower returns on other limited partnerships;

partially offset by

◦ higher returns on real estate limited partnerships and limited liability companies (“LLC”);

◦ higher average invested assets resulting from positive net flows in the general account;

• lower net fee income due to:

◦ lower asset-based fees resulting from lower average separate account balances, a portion of which is offset in other expenses;

◦ a decline in the net cost of insurance fees driven by the aging in-force business in our Run-off segment;

partially offset by

◦ lower ceded cost of insurance fees consistent with favorable equity market returns in our Life segment, which is offset in other expenses;

• higher other expenses due to:

◦ lower ceded cost of insurance expenses consistent with favorable equity market returns in our Life segment, which is offset in fee income;

◦ higher deferred compensation and operational expenses;

partially offset by

◦ lower asset-based variable annuity expenses resulting from lower average separate account balances, a portion of which is offset in fee income.

The provision for income tax, expressed as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 17% in the current period compared to 16% in the prior period.

Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction and tax credits.

Six Months Ended June 30, 2025 Compared with the Six Months Ended June 30, 2024

Adjusted earnings were $433 million in the current period, an increase of $185 million.

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partially offset by

◦ a decline in the net cost of insurance fees driven by the aging in-force business in our Run-off segment;

◦ lower asset-based fees resulting from lower average separate account balances, a portion of which is offset in other expenses;

◦ higher ceded cost of insurance fees consistent with unfavorable equity market returns in our Life segment, which is offset in other expenses;

◦ a decline in the net cost of insurance fees driven by the aging in-force business in our Run-off segment;

• lower other expenses due to:

◦ the conclusion of the aforementioned reinsurance arbitration in our Life and Run-off segments in the prior period;

◦ higher ceded cost of insurance expenses consistent with unfavorable equity market returns in our Life segment, which is offset in fee income;

◦ lower asset-based variable annuity expenses resulting from lower average separate account balances, a portion of which is offset in fee income;

partially offset by

◦ higher deferred compensation and operational expenses.

The key unfavorable impact was a lower net investment spread due to:

◦ higher interest credited to policyholders due to higher account balances and actuarial modeling improvements in our Annuities segment;

◦ lower returns on other limited partnerships;

◦ lower transition services agreement expenses;

partially offset by

◦ higher returns on real estate limited partnerships and limited liability companies (“LLC”);

◦ higher average invested assets resulting from positive net flows in the general account;

◦ higher investment yields on our fixed income portfolio, as proceeds from maturing investments and the growth in the investment portfolio were invested at higher yields than the portfolio average.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 17% in the current period compared to 15% in the prior period.

◦ higher operational expenses.

The key unfavorable impact was a lower net investment spread due to higher interest credited to policyholders due to higher account balances and actuarial modeling improvements in our Annuities segment.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 17% in both the current period and the prior period.

Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction, tax credits and current period non-recurring items.

Segment Results for the Three Months Ended March 31, 2025 and 2024 — Adjusted Earnings (Loss)

Segment Results for the Three Months and Six Months Ended June 30, 2025 and 2024 — Adjusted Earnings (Loss)

The components of adjusted earnings for our Annuities segment were as follows:

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

(In millions)

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The changes in our variable annuities separate account balances are presented in Note 5 of the Notes to the Interim Condensed Consolidated Financial Statements.

Three Months Ended March 31, 2025 Compared with the Three Months Ended March 31, 2024

Three Months Ended June 30, 2025 Compared with the Three Months Ended June 30, 2024

Adjusted earnings were $332 million in the current and prior period.

Key net favorable impacts were:

• higher net investment spread due to:

◦ higher average invested assets resulting from positive net flows in the general account;

◦ higher returns on real estate limited partnerships and LLCs;

◦ higher investment yields on our fixed income portfolio, as proceeds from maturing investments and the growth in the investment portfolio were invested at higher yields than the portfolio average;

partially offset by

◦ higher interest credited to policyholders due to higher account balances;

• lower net costs associated with insurance-related activities due to an increase in income annuity underwriting margins.

Key net unfavorable impacts were:

• lower fee income due to lower asset-based fees resulting from lower average separate account balances, a portion of which is offset in other expenses;

• higher other expenses due to:

◦ higher deferred compensation and operational expenses;

partially offset by

◦ lower asset-based variable annuity expenses resulting from lower average separate account balances, a portion of which is offset in fee income.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings, resulted in an effective tax rate of 19% in both the current period and the prior period.

Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction.

Six Months Ended June 30, 2025 Compared with the Six Months Ended June 30, 2024

Adjusted earnings were $646 million in the current period, an increase of $1 million.

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Key net unfavorable impacts were:

• lower fee income due to lower asset-based fees resulting from lower average separate account balances, a portion of which is offset in other expenses;

• higher other expenses due to:

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◦ lower asset-based variable annuity expenses resulting from lower average separate account balances, a portion of which is offset in fee income;

◦ lower deferred compensation expenses;

◦ lower transition services agreement expenses.

• lower fee income due to lower asset-based fees resulting from lower average separate account balances, a portion of which is offset in other expenses.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings, resulted in an effective tax rate of 19% in both the current period and the prior period.

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

(In millions)

5 unchanged sentences

Pre-tax adjusted earnings (loss)

(33) 52 (23) 6

Provision for income tax expense (benefit) (7) 10 (6) —

Adjusted earnings (loss)

Three Months Ended March 31, 2025 Compared with the Three Months Ended March 31, 2024

Adjusted earnings were $9 million in the current period, an increase of $45 million.

$ (26) $ 42 $ (17) $ 6

Three Months Ended June 30, 2025 Compared with the Three Months Ended June 30, 2024

Adjusted loss was $26 million in the current period, a decrease of $68 million.

Key net unfavorable impacts were:

• higher costs associated with insurance-related activities due to higher claims, net of reinsurance;

• lower net investment spread due to lower returns on other limited partnerships;

• higher other expenses due to:

◦ lower ceded cost of insurance expenses consistent with favorable equity market returns, which is offset in fee income;

◦ higher operational expenses.

The key favorable impact was higher fee income due to lower ceded cost of insurance fees consistent with favorable equity market returns, which is offset in other expenses.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 21% in the current period compared to 19% in the prior period.

Our effective tax rate may differ from the statutory tax rate primarily due to the impact of the dividends received deduction.

Six Months Ended June 30, 2025 Compared with the Six Months Ended June 30, 2024

Adjusted loss was $17 million in the current period, a decrease of $23 million.

Key net unfavorable impacts were:

• higher net costs associated with insurance-related activities due to higher claims, net of reinsurance;

• lower net investment spread due to lower returns on other limited partnerships.

Key net favorable impacts were:

• higher net fee income due to:

◦ lower ceded cost of insurance fees related to the conclusion of the aforementioned reinsurance arbitration in the prior period;

partially offset by

◦ higher ceded cost of insurance fees consistent with unfavorable equity market returns, which is offset in other expenses;

• higher fee income due to lower ceded cost of insurance fees related to the conclusion of the aforementioned reinsurance arbitration in the prior period;

• lower other expenses due to:

◦ higher ceded cost of insurance expenses consistent with unfavorable equity market returns, which is offset in fee income;

◦ the conclusion of the aforementioned reinsurance arbitration in the prior period;

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◦ higher operational expenses.

The key unfavorable impact was higher net costs associated with insurance-related activities due to higher claims, net of reinsurance.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 10% in the current period compared to 22% in the prior period.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in a higher effective tax rate in the current period compared to the prior period.

Our effective tax rate differs from the statutory tax rate primarily due to the impact of the dividends received deduction.

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

(In millions)

5 unchanged sentences

Pre-tax adjusted earnings (loss)

(105) (37) (186) (469)

Provision for income tax expense (benefit) (22) (7) (39) (98)

1 unchanged sentence

$ (83) $ (30) $ (147) $ (371)

Three Months Ended March 31, 2025 Compared with the Three Months Ended March 31, 2024

Three Months Ended June 30, 2025 Compared with the Three Months Ended June 30, 2024

Adjusted loss was $83 million in the current period, a higher loss of $53 million.

Key net unfavorable impacts were:

• lower net investment spread due to:

◦ lower returns on other limited partnerships;

◦ lower average invested long-term assets;

• higher net costs associated with insurance-related activities due to higher claims, net of reinsurance;

• lower fee income due to a decline in the net cost of insurance fees driven by the aging in-force business.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 21% in the current period compared to 19% in the prior period.

Our effective tax rate differs from the statutory tax rate primarily due to the impact of the dividends received deduction.

Six Months Ended June 30, 2025 Compared with the Six Months Ended June 30, 2024

Adjusted loss was $147 million in the current period, a lower loss of $224 million.

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◦ lower average invested long-term assets.

partially offset by

◦ lower interest credited to policyholders due to lower account balances.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 21% in both the current period and the prior period.

Our effective tax rate may differ from the statutory tax rate primarily due to the impact of the dividends received deduction.

Corporate & Other

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

(In millions)

6 unchanged sentences

Pre-tax adjusted earnings (loss), less net income (loss) attributable to noncontrolling interests and preferred stock dividends

(28) (7) (57) (24)

Provision for income tax expense (benefit) (3) (9) (8) 8

1 unchanged sentence

$ (25) $ 2 $ (49) $ (32)

Three Months Ended March 31, 2025 Compared with the Three Months Ended March 31, 2024

Adjusted loss was $24 million in the current period, a lower loss of $10 million.

Three Months Ended June 30, 2025 Compared with the Three Months Ended June 30, 2024

Adjusted loss was $25 million in the current period, a decrease of $27 million.

The key unfavorable impact was a lower net investment spread due to lower average invested long-term assets on our institutional spread margin business.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in a lower effective tax rate in the current period compared to the prior period.

Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction and tax credits.

We believe the effective tax rate for the Corporate & Other segment is not generally meaningful, neither on a standalone basis nor for comparison to prior periods, since taxes for the Corporate & Other segment are derived from the difference between the overall consolidated effective tax rate and total taxes for the combined operating segments.

Six Months Ended June 30, 2025 Compared with the Six Months Ended June 30, 2024

Adjusted loss was $49 million in the current period, a higher loss of $17 million.

The key unfavorable impact was a lower net investment spread due to lower average invested long-term assets on our institutional spread margin business.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in a higher effective tax rate in the current period compared to the prior period.

Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction, tax credits and current period non-recurring items.

We believe the effective tax rate for Corporate & Other is not generally meaningful, neither on a standalone basis nor for comparison to prior periods, since taxes for Corporate & Other are derived from the difference between the overall consolidated effective tax rate and total taxes for the other operating segments.

Annuity Guaranteed Benefits and Shield Annuity Liabilities for the Three Months Ended March 31, 2025 and 2024

Annuity Guaranteed Benefits and Shield Annuity Liabilities for the Three Months and Six Months Ended June 30, 2025 and 2024

The overall impact on income (loss) available to shareholders before provision for income tax from the performance of annuity guaranteed benefits and Shield Annuity liabilities, which includes (i) changes in the fair value of liabilities and related reinsurance, (ii) fees net of claims and (iii) the mark-to-market of hedges, was as follows:

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

(In millions)

3 unchanged sentences

Total changes attributable to annuity guaranteed benefits

1,101 356 208 1,796

Variable annuity hedges 1,073 137 196 204

1 unchanged sentence

$ 71 $ (204) $ (528) $ (514)

Three Months Ended March 31, 2025

Annuity guaranteed benefits and Shield Annuity liabilities performance was unfavorable for the three months ended March 31, 2025, primarily driven by:

• unfavorable increases in annuity guaranteed benefits liabilities due to decreasing interest rates and equity markets;

• unfavorable changes in variable annuity hedges due to decreasing equity markets, partially offset by decreasing long-term interest rates;

• favorable changes in Shield embedded derivatives due to decreasing equity markets.

Three Months Ended March 31, 2024

Annuity guaranteed benefits and Shield Annuity liabilities performance was unfavorable for the three months ended March 31, 2024, primarily driven by:

Three Months Ended June 30, 2025

Annuity guaranteed benefits and Shield Annuity liabilities performance was favorable for the three months ended June 30, 2025, primarily driven by:

• favorable decreases in annuity guaranteed benefits liabilities due to increasing equity markets and interest rates;

• favorable changes in variable annuity hedges due to increasing equity markets, partially offset by increasing long-term interest rates;

• unfavorable changes in Shield embedded derivatives due to increasing equity markets.

Three Months Ended June 30, 2024

Annuity guaranteed benefits and Shield Annuity liabilities performance was unfavorable for the three months ended June 30, 2024, primarily driven by:

• favorable decreases in annuity guaranteed benefits liabilities due to increasing interest rates;

• favorable changes in variable annuity hedges due to increasing equity markets, partially offset by increasing long-term interest rates;

• unfavorable changes in Shield embedded derivatives due to increasing equity markets.

Six Months Ended June 30, 2025

Annuity guaranteed benefits and Shield Annuity liabilities performance was unfavorable for the six months ended June 30, 2025, primarily driven by:

• favorable decreases in annuity guaranteed benefits liabilities due to increasing equity markets, partially offset by decreasing interest rates;

• favorable changes in variable annuity hedges due to decreasing long-term interest rates and increasing equity markets;

• unfavorable changes in Shield embedded derivatives due to increasing equity markets.

Six Months Ended June 30, 2024

Annuity guaranteed benefits and Shield Annuity liabilities performance was unfavorable for the six months ended June 30, 2024, primarily driven by:

• favorable decreases in annuity guaranteed benefits liabilities due to increasing interest rates and equity markets;

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Interest rate increases have contributed to the net unrealized loss position in our investment portfolio.

As a result of increases in interest rates, the unrealized losses on our fixed maturity securities exceeded the unrealized gains as of March 31, 2025.

As a result of increases in interest rates, the unrealized losses on our fixed maturity securities exceeded the unrealized gains as of June 30, 2025.

See “Risk Factors — Risks Related to Our Investment Portfolio — Our investment portfolio is subject to significant financial risks both in the U.S.

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See “— Investments — Mortgage Loans” and Note 7 of the Notes to the Interim Condensed Consolidated Financial Statements for information on mortgage loans, including credit quality by portfolio segment and commercial mortgage loans by property type.

Additionally, see “— Investments — Fixed Maturity Securities Available-For-Sale — Structured Securities” for information on Structured Securities, including security type, risk profile and ratings profile as well as “— Investments — Fixed Maturity Securities Available-For-Sale — U.S.

Additionally, see “— Investments — Fixed Maturity Securities Available-For-Sale — Structured Securities” for information on Structured Securities, including

security type, risk profile and ratings profile as well as “— Investments — Fixed Maturity Securities Available-For-Sale — U.S.

and Foreign Corporate Fixed Maturity Securities” for our exposure to the finance industry.

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Three Months Ended

Yield % Amount Yield % Amount

June 30, Six Months Ended

2025 2024 2025 2024

Yield % Amount Yield % Amount Yield % Amount Yield % Amount

(Dollars in millions)

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Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

(In millions)

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Adjusted net investment income — in the above yield table $ 1,292 $ 1,316 $ 2,583 $ 2,583

See “— Results of Operations — Consolidated Results for the Three Months Ended March 31, 2025 and 2024” for an analysis of the period-over-period changes in net investment income.

See “— Results of Operations — Consolidated Results for the Three Months and Six Months Ended June 30, 2025 and 2024” for an analysis of the period-over-period changes in net investment income.

Fixed Maturity Securities Available-For-Sale

Fixed maturity securities held by type (public or private) were as follows at:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Estimated Fair Value % of

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The following table presents total fixed maturity securities by NRSRO rating and the applicable NAIC designation from the NAIC published comparison of NRSRO ratings to NAIC designations, except for certain Structured Securities, which are presented using the NAIC methodologies, as well as the percentage, based on estimated fair value that each NAIC designation is comprised of at:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

NAIC Designation

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(In millions)

March 31, 2025

June 30, 2025

corporate $ 17,773 $ 18,047 $ 1,431 $ 255 $ 47 $ 20 $ 37,573

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We maintain a diversified portfolio of corporate fixed maturity securities across industries and issuers.

Our portfolio does not have any exposure to any single issuer in excess of 1% of total investments and the top ten holdings in aggregate comprise 1% total investments at both March 31, 2025 and December 31, 2024.

Our portfolio does not have any exposure to any single issuer in excess of 1% of total investments and the top ten holdings in aggregate comprise 1% total investments at both June 30, 2025 and December 31, 2024.

and foreign corporate fixed maturity securities holdings by industry were as follows at:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(Dollars in millions)

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Structured Securities

We held $20.1 billion and $20.0 billion of Structured Securities, at estimated fair value, at March 31, 2025 and December 31, 2024, respectively, as presented in the RMBS, CMBS and ABS sections below.

We held $20.4 billion and $20.0 billion of Structured Securities, at estimated fair value, at June 30, 2025 and December 31, 2024, respectively, as presented in the RMBS, CMBS and ABS sections below.

Our RMBS holdings are diversified by security type, risk profile and ratings profile, which were as follows at:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Estimated Fair Value % of

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Our CMBS holdings are diversified by vintage year, which were as follows at:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value

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Total $ 6,663 $ 6,374 $ 6,776 $ 6,356

The estimated fair value of CMBS rated Aaa using rating agency ratings was $4.4 billion, or 68.8% of total CMBS, and designated NAIC 1 was $6.1 billion, or 94.3% of total CMBS, at March 31, 2025.

The estimated fair value of CMBS rated Aaa using rating agency ratings was $4.2 billion, or 66.2% of total CMBS, and designated NAIC 1 was $6.0 billion, or 94.0% of total CMBS, at June 30, 2025.

The estimated fair value of CMBS rated Aaa using rating agency ratings was $4.3 billion, or 67.7% of total CMBS, and designated NAIC 1 was $6.0 billion, or 94.2% of total CMBS, at December 31, 2024.

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Our ABS holdings by collateral type and ratings profile were as follows at:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Estimated Fair Value % of

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Information regarding mortgage loans by portfolio segment is summarized as follows at:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Amortized Cost % of

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The percentage of our commercial and agricultural mortgage loan portfolios collateralized by properties located in the U.S.

was 98% at both March 31, 2025 and December 31, 2024.

was 98% at both June 30, 2025 and December 31, 2024.

The remainder was collateralized by properties located outside of the U.S.

At March 31, 2025, the carrying value as a percentage of total commercial and agricultural mortgage loans for the top three states in the U.S.

At June 30, 2025, the carrying value as a percentage of total commercial and agricultural mortgage loans for the top three states in the U.S.

was 17% for California, 11% for Texas and 8% for New York.

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All residential mortgage loans were collateralized by properties located in the U.S.

at both March 31, 2025 and December 31, 2024.

At March 31, 2025, the carrying value as a percentage of total residential mortgage loans for the top three states in the U.S.

at both June 30, 2025 and December 31, 2024.

At June 30, 2025, the carrying value as a percentage of total residential mortgage loans for the top three states in the U.S.

was 37% for California, 10% for Florida and 6% for New York.

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The diversification across geographic regions and property types of commercial mortgage loans was as follows at:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Amount % of Total

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575 4.5 726 5.4

International 395 3.0 391 2.9

East South Central

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355 2.7 358 2.7

International

333 2.6 391 2.9

Multi-region and Other

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Generally, the lower the debt-service coverage ratio, the higher the risk of experiencing a credit loss.

For our commercial mortgage loans, our average loan-to-value ratio was 68% and 69% at March 31, 2025 and December 31, 2024, respectively, and our average debt-service coverage ratio was 2.3x at both March 31, 2025 and December 31, 2024.

For our commercial mortgage loans, our average loan-to-value ratio was 68% and 69% at June 30, 2025 and December 31, 2024, respectively, and our average debt-service coverage ratio was 2.2x and 2.3x at June 30, 2025 and December 31, 2024, respectively.

The debt-service coverage ratio, as well as the values utilized in calculating the ratio, is updated annually on a rolling basis, with a portion of the portfolio updated each quarter.

In addition, the loan-to-value ratio is routinely updated for all but the lowest risk loans as part of our ongoing review of our commercial mortgage loan portfolio.

For our agricultural mortgage loans, our average loan-to-value ratio was 47% and 48% at March 31, 2025 and December 31, 2024, respectively.

For our agricultural mortgage loans, our average loan-to-value ratio was 46% and 48% at June 30, 2025 and December 31, 2024, respectively.

The values utilized in calculating the agricultural mortgage loan loan-to-value ratio are developed in connection with the ongoing review of the agricultural loan portfolio and are routinely updated.

Mortgage Loan Allowance for Credit Losses .

See Note 7 of the Notes to the Interim Condensed Consolidated Financial Statements for information about how the allowance for credit losses is established and monitored, as well as activity in and balances of the allowance for credit losses for the three months ended March 31, 2025 and 2024.

Limited Partnerships and Limited Liability Companies

The carrying values of our limited partnerships and LLCs were as follows at:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(In millions)

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__________________

(1) The estimated fair value of real estate limited partnerships and LLCs was $828 million and $836 million at March 31, 2025 and December 31, 2024, respectively.

(1) The estimated fair value of real estate limited partnerships and LLCs was $746 million and $836 million at June 30, 2025 and December 31, 2024, respectively.

Cash distributions on these investments are generated from investment gains, operating income from the underlying investments of the funds and liquidation of the underlying investments of the funds.

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The carrying value of our other invested assets by type was as follows at:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Carrying Value

Carrying Value % of Total

Carrying Value % of

(Dollars in millions)

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See Note 8 of the Notes to the Interim Condensed Consolidated Financial Statements for:

• information about the gross notional amount, estimated fair value, and primary underlying risk exposure of our derivatives by type of hedge designation, excluding embedded derivatives held at March 31, 2025 and December 31, 2024;

• the effects of derivatives in cash flow, fair value, or non-qualifying hedge relationships on the statements of operations for the three months ended March 31, 2025 and 2024.

• the effects of derivatives in cash flow, fair value, or non-qualifying hedge relationships on the statements of operations for the six months ended June 30, 2025 and 2024.

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management Strategies” included in our 2024 Annual Report for more information about our hedging strategies.

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The use of different inputs or methodologies could have a material effect on the estimated fair value of Level 3 derivatives and could materially affect net income.

Derivatives categorized as Level 3 at March 31, 2025 include:

Derivatives categorized as Level 3 at June 30, 2025 include:

credit default swaps priced using unobservable credit spreads, or that are priced through independent broker quotations;

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The gross notional amount and estimated fair value of credit default swaps were as follows at:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Gross Notional Amount

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Our variable annuity account value and NAR by type of GMxB were as follows at:

March 31, 2025

June 30, 2025

December 31, 2024

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GMAB 219 — — — % 359 1 1 2.9 %

GMDB only (other than EDB) (3) 16,244 1,039 — N/A 17,076 964 — N/A

EDB only (3) 3,025 1,380 — N/A 3,084 1,343 — N/A

GMDB only (other than EDB) (3) 17,113 939 — — 17,076 964 — N/A

EDB only (3) 3,132 1,267 — — 3,084 1,343 — N/A

Total $ 80,407 $ 12,287 $ 4,934 $ 80,984 $ 12,817 $ 5,484

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Additionally, the index protection and accumulation features of Shield Annuities are accounted for as embedded derivatives, measured at estimated fair value, and are reported in policyholder account balances on the consolidated balance sheets, with changes reported in net derivative gains (losses) on the consolidated statements of operations.

The Shield embedded derivative liabilities were valued at $9.4 billion at March 31, 2025.

The Shield embedded derivative liabilities were valued at $10.5 billion at June 30, 2025.

Our variable annuity MRBs by type of GMxB were as follows at:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(In millions)

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We continuously monitor and adjust our liquidity and capital plans in light of market conditions, as well as changing needs and opportunities.

We maintain a substantial short-term liquidity position, which was $4.7 billion and $5.2 billion at March 31, 2025 and December 31, 2024, respectively.

We maintain a substantial short-term liquidity position, which was $4.6 billion and $5.2 billion at June 30, 2025 and December 31, 2024, respectively.

Short-term liquidity is comprised of cash and cash equivalents and short-term investments, excluding assets that are pledged or otherwise committed.

Assets pledged or otherwise committed include amounts received in connection with securities lending, derivatives and assets held on deposit or in trust.

An integral part of our liquidity management includes managing our level of liquid assets, which was $48.0 billion and $48.1 billion at March 31, 2025 and December 31, 2024, respectively.

An integral part of our liquidity management includes managing our level of liquid assets, which was $48.9 billion and $48.1 billion at June 30, 2025 and December 31, 2024, respectively.

Liquid assets are comprised of cash and cash equivalents, short-term investments and publicly-traded securities, excluding assets that are pledged or otherwise committed.

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With our risk management focus on the core drivers of our combined RBC ratio, we believe we can better manage our RBC in stressed market scenarios.

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

In November 2023, we authorized a $750 million share repurchase program under which repurchases may be made through open market purchases, including pursuant to Rule 10b5-1 plans or pursuant to accelerated stock repurchase plans, or through privately negotiated transactions, from time to time at management’s discretion in accordance with applicable legal requirements.

Common stock repurchases are dependent upon several factors, including our capital position, liquidity, financial strength and credit ratings, general market conditions, the market price of our common stock compared to management’s assessment of the stock’s underlying value and applicable regulatory approvals, as well as other legal and accounting factors.

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Therefore, there can be no assurance that we will pay any dividends or make other distributions or returns of capital on our common stock, or as to the amount of any such dividends, distributions or returns of capital.

Rating Agencies

Rating agencies may continue to review and adjust our ratings.

For example, in July 2025, S&P revised the long-term issuer credit ratings for BHF and Brighthouse Holdings, LLC (“BH Holdings”) to BBB from BBB+.

In addition, S&P revised the financial strength ratings for certain of its subsidiaries to A from A+, among other revisions.

See “Risk Factors — Risks Related to Our Business — A downgrade or a potential downgrade in our financial strength or credit ratings could result in a loss of business and materially adversely affect our financial condition and results of operations” included in our 2024 Annual Report for a description of the potential impact of a ratings downgrade.

Sources and Uses of Liquidity and Capital

Our primary sources and uses of liquidity and capital were as follows at:

Three Months Ended

Six Months Ended

(In millions)

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Changes in policyholder account balances, net

Changes in payables for collateral under securities loaned and other transactions, net

Long-term debt repaid 1 1

Dividends on preferred stock

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The institutional spread margin business is comprised of funding agreements issued in connection with the programs described in more detail below.

Activity related to these programs is reported in Corporate & Other.

Activity related to these programs is reported in the Corporate & Other segment.

See Note 3 of the Notes to the Consolidated Financial Statements included in our 2024 Annual Report for additional information on funding agreements.

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Outstanding Issuances Repayments

Three Months Ended March 31,

March 31, 2025 December 31, 2024 2025 2024 2025 2024

Six Months Ended June 30,

June 30, 2025 December 31, 2024 2025 2024 2025 2024

(In millions)

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Our Revolving Credit Facility contains financial covenants, including requirements to maintain a specified minimum adjusted consolidated net worth, to maintain a ratio of total indebtedness to total capitalization not in excess of a specified percentage and that place limitations on the dollar amount of indebtedness that may be incurred by our subsidiaries, which could restrict our operations and use of funds.

At March 31, 2025, we were in compliance with these financial covenants.

At June 30, 2025, we were in compliance with these financial covenants.

Primary Uses of Liquidity and Capital

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Common Stock Repurchases

See Note 10 of the Notes to the Interim Condensed Consolidated Financial Statements for information relating to authorizations to repurchase BHF common stock, amounts of common stock repurchased pursuant to such authorizations and the amount remaining under such authorizations at March 31, 2025.

Subsequent to March 31, 2025 and through May 6, 2025, BHF repurchased an additional 479,500 shares of its common stock through open market purchases, pursuant to a Rule 10b5-1 plan, for $25 million.

Preferred Stock Dividends

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We pledge collateral to, and have collateral pledged to us by, counterparties in connection with our derivatives.

At March 31, 2025, we pledged $16 million of cash collateral to counterparties.

At June 30, 2025, we pledged less than $1 million of cash collateral to counterparties.

At December 31, 2024, we did not pledge any cash collateral to counterparties.

At March 31, 2025 and December 31, 2024, we were obligated to return cash collateral pledged to us by counterparties of $858 million and $812 million, respectively.

At June 30, 2025 and December 31, 2024, we were obligated to return cash collateral pledged to us by counterparties of $907 million and $812 million, respectively.

The timing of the return of the derivatives collateral is uncertain.

1 unchanged sentence

We receive non-cash collateral from counterparties for derivatives, which can be sold or re-pledged subject to certain constraints, and which is not recorded on our consolidated balance sheets.

The amount of this non-cash collateral at estimated fair value was $1.9 billion and $2.3 billion at March 31, 2025 and December 31, 2024, respectively.

The amount of this non-cash collateral at estimated fair value was $1.8 billion and $2.3 billion at June 30, 2025 and December 31, 2024, respectively.

See Note 8 of the Notes to the Interim Condensed Consolidated Financial Statements for additional information regarding pledged collateral.

3 unchanged sentences

Generally, our securities lending contracts expire within twelve months of issuance.

We were liable for cash collateral under our control of $3.3 billion and $3.2 billion at March 31, 2025 and December 31, 2024, respectively.

We were liable for cash collateral under our control of $3.3 billion and $3.2 billion at June 30, 2025 and December 31, 2024, respectively.

We receive non-cash collateral for securities lending from counterparties, which cannot be sold or re-pledged, and which is not recorded on our consolidated balance sheets.

There was no non-cash collateral at both March 31, 2025 and December 31, 2024.

There was no non-cash collateral at both June 30, 2025 and December 31, 2024.

See Note 7 of the Notes to the Interim Condensed Consolidated Financial Statements for further discussion of our securities lending program.

13 unchanged sentences

Short-term Liquidity and Liquid Assets

At March 31, 2025 and December 31, 2024, BHF and certain of its non-insurance subsidiaries had short-term liquidity of $872 million and $912 million, respectively.

At June 30, 2025 and December 31, 2024, BHF and certain of its non-insurance subsidiaries had short-term liquidity of $803 million and $912 million, respectively.

Short-term liquidity is comprised of cash and cash equivalents and short-term investments, excluding assets that are pledged or otherwise committed.

Assets pledged or otherwise committed include assets held in trust.

At March 31, 2025 and December 31, 2024, BHF and certain of its non-insurance subsidiaries had liquid assets of $987 million and $1.1 billion, respectively, of which $936 million and $1.1 billion, respectively, was held by BHF.

At June 30, 2025 and December 31, 2024, BHF and certain of its non-insurance subsidiaries had liquid assets of $941 million and $1.1 billion, respectively, of which $901 million and $1.1 billion, respectively, was held by BHF.

Liquid assets are comprised of cash and cash equivalents, short-term investments and publicly-traded securities, excluding assets that are pledged or otherwise committed.

Assets pledged or otherwise committed include assets held in trust.

On February 11, 2025, Brighthouse Life Insurance Company received a $100 million capital contribution from Brighthouse Holdings, LLC (“BH Holdings”).

On February 11, 2025, Brighthouse Life Insurance Company received a $100 million capital contribution from BH Holdings.

Statutory Capital and Dividends

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Distributions from and Capital Contributions to BH Holdings

During both the three months ended March 31, 2025 and 2024, BHF did not receive any cash distributions from BH Holdings and did not make any cash capital contributions to BH Holdings.

During both the six months ended June 30, 2025 and 2024, BHF did not receive any cash distributions from BH Holdings and did not make any cash capital contributions to BH Holdings.

Short-term Intercompany Loans

2 unchanged sentences

Each loan entered into under this intercompany loan agreement has a term not more than 364 days and bears interest on the unpaid principal amount at a variable rate, payable monthly.

During the three months ended March 31, 2025 and 2024, BHF borrowed $185 million and $110 million, respectively, from certain of its non-insurance subsidiaries and repaid $227 million and $50 million of such borrowings during the three months ended March 31, 2025 and 2024, respectively.

At March 31, 2025 and December 31, 2024, BHF had total obligations outstanding of $540 million and $582 million, respectively, under such agreements.

During the six months ended June 30, 2025 and 2024, BHF borrowed $398 million and $290 million, respectively, from certain of its non-insurance subsidiaries and repaid $386 million and $85 million of such borrowings during the six months ended June 30, 2025 and 2024, respectively.

At June 30, 2025 and December 31, 2024, BHF had total obligations outstanding of $594 million and $582 million, respectively, under such agreements.

Intercompany Liquidity Facilities

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Under these facilities, which are comprised of a series of revolving loan agreements among BHF and its participating subsidiaries, each company may lend to or borrow from each other, subject to certain maximum limits for a term of up to 364 days, depending on the agreement.

During both the three months ended March 31, 2025 and 2024, there were no borrowings or repayments by BHF under these facilities and, at both March 31, 2025 and December 31, 2024, BHF had no obligations outstanding under such facilities.

During both the six months ended June 30, 2025 and 2024, there were no borrowings or repayments by BHF under these facilities and, at both June 30, 2025 and December 31, 2024, BHF had no obligations outstanding under such facilities.

Note Regarding Forward-Looking Statements

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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 2. Management’s Discussion and Analysis