What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-02-24 compared with 2025-02-28 · 408 added, 468 removed, 2666 unchanged (25% of the section changed)

93 unchanged sentences

allowance for credit losses of $ 64 and $ 81 , respectively)

$ 80,055 $ 80,991

Trading securities, at estimated fair value

Equity securities, at estimated fair value

Mortgage loans (net of allowance for credit losses of $ 200 and $ 178 , respectively)

23,286 22,508

Policy loans 2,024 1,331

Limited partnerships and limited liability companies

5 unchanged sentences

Premiums, reinsurance and other receivables (net of allowance for credit losses of $ 3 and $ 3 , respectively)

21,126 19,761

Deferred policy acquisition costs and value of business acquired

2 unchanged sentences

Market risk benefit assets

Other assets 370 370

Separate account assets

Total assets $ 238,537 $ 236,340

Liabilities and Equity

20 unchanged sentences

66,910,750 and 64,851,277 shares, respectively

( 2,572 ) ( 2,309 )

Accumulated other comprehensive income (loss)

1 unchanged sentence

Noncontrolling interests

Total equity 5,024 5,008

Total liabilities and equity

4 unchanged sentences

(In millions, except per share data)

2024 2023 2022

Premiums $ 770 $ 828 $ 662

Universal life and investment-type product policy fees

5 unchanged sentences

Policyholder benefits and claims (including liability remeasurement gains (losses) of ($ 273 ), ($ 978 ), ($ 234 ), respectively)

2,294 2,676 2,193

Interest credited to policyholder account balances

8 unchanged sentences

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

388 ( 1,112 ) 3,879

Preferred stock dividends

1 unchanged sentence

Earnings per common share

Basic $ 4.67 $ ( 18.39 ) $ 51.73

Diluted $ 4.64 $ ( 18.39 ) $ 51.30

See accompanying notes to the consolidated financial statements.

3 unchanged sentences

(In millions)

2024 2023 2022

Net income (loss)

10 unchanged sentences

Comprehensive income (loss)

361 ( 247 ) ( 2,269 )

Comprehensive income (loss) attributable to noncontrolling interests, net of income tax

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

$ 356 $ ( 252 ) $ ( 2,274 )

See accompanying notes to the consolidated financial statements.

3 unchanged sentences

(In millions)

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

Comprehensive

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

Preferred Stock

Additional Paid-in Capital

Retained Earnings (Deficit)

Treasury Stock at Cost

Accumulated Other Comprehensive Income (Loss)

Brighthouse Financial, Inc.’s Stockholders’ Equity

Noncontrolling Interests

Balance at December 31, 2022

14 unchanged sentences

Treasury stock acquired in connection with share repurchases

( 102 ) ( 102 )

Share-based compensation

5 unchanged sentences

See accompanying notes to the consolidated financial statements.

Table of Conte nts

Brighthouse Financial, Inc.

2 unchanged sentences

(In millions)

2024 2023 2022

Cash flows from operating activities

8 unchanged sentences

Change in market risk benefits, net

( 2,073 ) ( 875 ) ( 3,335 )

Change in accrued investment income

5 unchanged sentences

Change in other liabilities

Other, net 30 39 32

Net cash provided by (used in) operating activities

2 unchanged sentences

Fixed maturity securities

Trading securities

Equity securities

3 unchanged sentences

Fixed maturity securities

Trading securities

Equity securities

6 unchanged sentences

Net change in other invested assets

Other, net ( 4 ) — —

Net cash provided by (used in) investing activities

See accompanying notes to the consolidated financial statements.

Table of Conte nts

Brighthouse Financial, Inc.

2 unchanged sentences

(In millions)

2024 2023 2022

Cash flows from financing activities

Policyholder account balances:

Deposits $ 30,410 $ 21,989 $ 31,693

Withdrawals ( 26,378 ) ( 17,747 ) ( 20,043 )

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

3 unchanged sentences

Financing element on certain derivative instruments and other derivative related transactions, net

Other, net ( 17 ) ( 19 ) ( 16 )

Net cash provided by (used in) financing activities

Change in cash, cash equivalents and restricted cash

342 1,194 ( 264 )

Cash, cash equivalents and restricted cash, beginning of year

2 unchanged sentences

Net cash paid (received) for:

Interest $ 151 $ 151 $ 152

Income tax $ 13 $ 7 $ 44

Non-cash transactions:

6 unchanged sentences

Brighthouse Financial, Inc.

(“BHF” and, together with its subsidiaries, “Brighthouse Financial” or the “Company”) is a holding company formed in 2016 to own the legal entities that historically operated a substantial portion of MetLife, Inc.’s (together with its subsidiaries and affiliates, “MetLife”) former retail segment until becoming a separate, publicly-traded company in August 2017.

Brighthouse Financial is one of the largest providers of annuity and life insurance products in the U.S.

(“BHF” and, together with its subsidiaries, “Brighthouse Financial” or the “Company”) is one of the largest providers of annuity and life insurance products in the U.S.

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

1 unchanged sentence

and Corporate & Other.

On November 6, 2025, BHF entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Aquarian Holdings VI L.P., a Delaware limited partnership (“Aquarian Parent”), Aquarian Beacon Merger Sub Inc., a Delaware corporation and an indirect wholly-owned subsidiary of Aquarian Parent (“Merger Sub”), and Aquarian Holdings LLC, a Delaware limited liability company, solely for the purpose of certain provisions, pursuant to which, at the closing of the transactions contemplated by the Merger Agreement, Merger Sub will merge with and into BHF, with BHF surviving as a wholly-owned subsidiary of Aquarian Parent (the “Merger”).

Pursuant to the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each share of our common stock issued and outstanding immediately prior to the Effective Time will be converted into the right to receive $ 70.00 per share, net in cash, without interest and less any amounts that are required to be deducted or withheld under applicable law (the “Merger Consideration”).

Basis of Presentation

17 unchanged sentences

The discussion below provides an overview of the different accounting models for insurance contract obligations and the applicability of such models to the Company’s insurance products.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

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

Liability for Future Policy Benefits

4 unchanged sentences

The Company generally aggregates insurance contracts into groupings by issue year, product and segment for determining the net premium ratio and related LFPBs.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

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

The Company reviews cash flow assumptions regularly, and if they change significantly, LFPBs are adjusted by determining a revised net premium ratio.

25 unchanged sentences

Liabilities for secondary guarantees are presented within future policy benefits with changes in the liabilities reported in policyholder benefits and claims, except for the effects of unrealized investment gains and losses, which are reported in OCI.

The most significant assumptions used in estimating liabilities for secondary guarantees are the general account rate of return, mortality, premium persistency, lapses and withdrawals.

See Note 3 for more information on the effect of changes in assumptions on the measurement of liabilities for secondary guarantees.

Brighthouse Financial, Inc.

1 unchanged sentence

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

The most significant assumptions used in estimating liabilities for secondary guarantees are the general account rate of return, mortality, premium persistency, lapses and withdrawals.

See Note 3 for more information on the effect of changes in assumptions on the measurement of liabilities for secondary guarantees.

Market Risk Benefits on Annuity Guarantees

5 unchanged sentences

The measurement of fair value includes an adjustment for the risk that the Company fails to satisfy its obligations, which is referred to as nonperformance risk, as well as risk margin to capture the non-capital markets risks of the instrument, which represents the additional compensation a market participant would require to assume the risks related to the uncertainties in certain actuarial assumptions.

MRBs are measured at estimated fair value, with changes reported in change in MRBs on the consolidated statements of operations, except for the change due to nonperformance risk, which is reported in OCI.

MRBs are measured at estimated fair value, with changes reported in change in MRBs, except for the change due to nonperformance risk, which is reported in OCI.

See Note 4 for more information on the effect of changes in inputs and assumptions on the measurement of MRBs and Note 10 for more information on the determination of fair value of MRBs.

18 unchanged sentences

The remeasurement gain or loss from updating DPLs is recognized in current period net income along with the related change in LFPBs.

Deposits related to universal life insurance, deferred annuity contracts and investment contracts are credited to policyholder account balances.

Revenues from such contracts consist of asset-based investment management fees, cost of insurance charges, risk charges, policy administration fees and surrender charges.

These fees, which are included in universal life and investment-type product policy fees, are recognized when assessed to the contract holder, except for non-level insurance charges which are deferred by the establishment of an unearned revenue liability and amortized over the expected life of the contracts.

Brighthouse Financial, Inc.

1 unchanged sentence

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

Deposits related to universal life insurance, deferred annuity contracts and investment contracts are credited to policyholder account balances.

Revenues from such contracts consist of asset-based investment management fees, cost of insurance (“COI”) charges, risk charges, policy administration fees and surrender charges.

Premiums and policy fees are presented net of reinsurance.

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Interest on such deposits is recorded as other revenues or other expenses, as appropriate.

The funds withheld liability represents amounts withheld by the Company in accordance with the terms of the reinsurance agreements.

Under certain reinsurance agreements, the Company withholds the funds rather than transferring the underlying investments and, as a result, records a funds withheld liability in other liabilities.

The Company recognizes interest on funds withheld, included in other expenses, at rates defined by the terms of the agreement which may be contractually specified or directly related to the investment portfolio.

Brighthouse Financial, Inc.

1 unchanged sentence

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

The funds withheld liability represents amounts withheld by the Company in accordance with the terms of the reinsurance agreements.

Under certain reinsurance agreements, the Company withholds the funds rather than transferring the underlying investments and, as a result, records a funds withheld liability in other liabilities.

Certain funds withheld arrangements may also contain embedded derivatives measured at fair value that are related to the investment return on the assets withheld.

6 unchanged sentences

Fixed Maturity Securities Available-For-Sale

The Company’s fixed maturity securities are classified as available-for-sale and are reported at their estimated fair value.

Fixed maturity securities classified as available-for-sale are reported at their estimated fair value.

Unrealized investment gains and losses on these securities are recorded as a separate component of OCI, net of policy-related amounts and deferred income taxes.

12 unchanged sentences

For fixed maturity securities in an unrealized loss position, when the Company has the intent to sell the security, or it is more likely than not that the Company will be required to sell the security before recovery, the amortized cost basis of the security is written down to fair value through net investment gains (losses).

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

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

For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors.

3 unchanged sentences

Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses).

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

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

Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible.

When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses.

Trading Securities

Fixed maturity securities classified as trading securities are reported at their estimated fair value.

The recognition and measurement of trading securities and related interest income is consistent with the accounting for fixed maturity securities available-for-sale.

Realized and unrealized investment gains (losses) are recorded in net investment income.

Mortgage Loans

19 unchanged sentences

Other invested assets consist principally of freestanding derivatives with positive estimated fair values which are described in “— Derivatives” below.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

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

Securities Lending Program

5 unchanged sentences

The Company is liable to return to the counterparties the cash collateral received.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

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

Funding Agreements

21 unchanged sentences

When the hedged item matures or is sold, or the forecasted transaction is not probable of occurring, the Company immediately reclassifies any remaining balances in OCI to net derivative gains (losses).

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

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

Embedded Derivatives

2 unchanged sentences

See “— Insurance Contract Obligations” and “— Reinsurance” for additional information on the accounting policies for embedded derivatives.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

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

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

15 unchanged sentences

The Company’s accounting for income taxes represents management’s best estimate of various events and transactions.

Current and deferred income taxes included herein and attributable to periods up until the Company’s separation from MetLife (“Separation”) have been allocated to the Company in a manner that is systematic, rational and consistent with the asset and liability method prescribed by ASC 740.

Current and deferred income taxes included herein and attributable to periods up until the Company’s separation from MetLife, Inc.

(together with its subsidiaries and affiliates, “MetLife”) (“Separation”) have been allocated to the Company in a manner that is systematic, rational and consistent with the asset and liability method prescribed by ASC 740.

Deferred tax assets and liabilities resulting from temporary differences between the financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

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

The realization of deferred tax assets depends upon the existence of sufficient taxable income within the carryback or carryforward periods under the tax law in the applicable tax jurisdiction.

2 unchanged sentences

When making such determination, the Company considers many factors, including the jurisdiction in which the deferred tax asset was generated, the length of time that carryforward can be utilized in the various taxing jurisdictions, future taxable income exclusive of reversing temporary differences and carryforwards, future reversals of existing taxable temporary differences, taxable income in prior carryback years, tax planning strategies and the nature, frequency, and amount of cumulative financial reporting income and losses in recent years.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

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

The Inflation Reduction Act, which was enacted in 2022, established a 15% corporate alternative minimum tax (“CAMT”) for corporations whose average annual adjusted financial statement income for any consecutive three–tax year period ending after December 31, 2021, and preceding the tax year exceeds $1.0 billion.

20 unchanged sentences

Brighthouse Services and NELICO are both indirect wholly-owned subsidiaries.

Actuarial gains and losses result from differences between the actual experience and the assumed experience on plan assets or PBO during a particular period and are recorded in accumulated other comprehensive income (loss) (“AOCI”).

To the extent such gains and losses exceed 10% of the greater of the PBO or the estimated fair value of plan assets, the excess is amortized into net periodic benefit costs over the average projected future lifetime of all plan participants or projected future working lifetime, as appropriate.

Prior service costs (credit) are recognized in AOCI at the time of the amendment and then amortized into net periodic benefit costs over the average projected future lifetime of all plan participants or projected future working lifetime, as appropriate.

Brighthouse Financial, Inc.

1 unchanged sentence

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

Net periodic benefit costs are determined using management estimates and actuarial assumptions;

4 unchanged sentences

Except as noted below, there were no significant ASUs adopted during the year ended December 31, 2025.

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

Improvements to Reportable Segment Disclosures (“ASU 2023-07”) ).

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

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

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

Improvements to Income Tax Disclosures ).

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.

The Company adopted this guidance during fiscal year 2025 on a retrospective basis.

Future Adoption of New Accounting Pronouncements

In November 2025, the FASB issued new guidance on financial instrument credit losses (ASU 2025-08, Financial Instruments – Credit Losses (Topic 326):

Purchased Loans).

Under current GAAP, an allowance for credit losses for assets purchased with credit deterioration is established by grossing up the amortized cost basis of the asset, while the allowance for all other loans is recognized separately as an expense.

The ASU expands the population of purchased financial instruments subject to the gross-up approach for determining the allowance for credit losses to include all purchased loans that meet certain criteria.

The ASU is effective for annual and interim periods starting with fiscal year 2027.

This ASU is required to be adopted prospectively for all loans acquired on or after the effective date.

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

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

4 unchanged sentences

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

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

Improvements to Income Tax Disclosures ).

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

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

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.

2 unchanged sentences

The Life segment consists of insurance products, including term, universal, whole and variable life products designed to address policyholders’ needs for financial security and protected wealth transfer, which may be on a tax-advantaged basis.

The Run-off segment consists primarily of products that are no longer actively sold and are separately managed, including ULSG, structured settlements, pension risk transfer contracts, certain company-owned life insurance policies and certain funding agreements.

Brighthouse Financial, Inc.

1 unchanged sentence

Segment Information (continued)

Corporate & Other

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.

In connection with the adoption of ASU 2023-07, the Company’s presentation of segment information has been updated for all periods.

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 (classified as “trading securities” under GAAP).

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

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

• Net investment gains (losses);

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

• Net derivative gains (losses), excluding earned income and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment (“Investment Hedge Adjustments”).

1 unchanged sentence

• Change in MRBs;

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

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

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

2 unchanged sentences

Segment investment and capitalization targets are based on statutory oriented risk principles and metrics.

Segment invested assets backing liabilities are based on net statutory liabilities plus excess capital.

For the variable annuity business, the excess capital held is based on the target statutory total asset requirement consistent with the Company’s variable annuity risk management strategy.

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

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

Segment invested assets backing liabilities are based on net statutory liabilities plus excess capital, with excess capital determined based on statutory risk-based capital (“RBC”) metrics.

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.

4 unchanged sentences

Year Ended December 31, 2025

Annuities Life Run-off Corporate & Other Total

Corporate & Other

(In millions)

Total revenues

$ 1,932 $ 1,113 $ 996 $ 683 $ 4,724

Revenues excluded from adjusted earnings (1)

( 3,350 ) ( 22 ) ( 599 ) ( 23 )

Segment expenses:

Policyholder benefits and claims

479 710 1,105 —

Interest credited to policyholder account balances, excluding market value adjustments

1,351 105 243 450

Amortization of DAC and VOBA

1 unchanged sentence

Other expenses (2)

1,399 188 166 41

Provision for income tax expense (benefit)

297 5 16 ( 14 )

Net income (loss) attributable to noncontrolling interests

1 unchanged sentence

Adjusted earnings (loss)

$ 1,251 $ 33 $ 65 $ ( 30 ) 1,319

Adjustments for:

Net investment gains (losses)

Investment gains (losses) on trading securities —

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

8 unchanged sentences

Year Ended December 31, 2024

Annuities Life Run-off Corporate & Other Total

Corporate & Other

(In millions)

Total revenues

$ 944 $ 1,199 $ 1,405 $ 569 $ 4,117

Revenues excluded from adjusted earnings (1)

( 3,934 ) ( 30 ) ( 238 ) ( 56 )

Segment expenses:

Policyholder benefits and claims

480 894 1,302 —

Interest credited to policyholder account balances, excluding market value adjustments

1,054 97 274 388

Amortization of DAC and VOBA

1 unchanged sentence

Other expenses (2)

1,391 203 167 63

Provision for income tax expense (benefit)

268 ( 16 ) ( 23 ) ( 16 )

Net income (loss) attributable to noncontrolling interests

1 unchanged sentence

Adjusted earnings (loss)

$ 1,169 $ ( 53 ) $ ( 77 ) $ ( 70 ) 969

Adjustments for:

Net investment gains (losses)

Investment gains (losses) on trading securities

Net derivative gains (losses), excluding investment hedge adjustments of $ 31

8 unchanged sentences

Year Ended December 31, 2023

Annuities Life Run-off Corporate & Other Total

Corporate & Other

(In millions)

Total revenues

$ 5,492 $ 1,182 $ ( 196 ) $ 395 $ 6,873

Revenues excluded from adjusted earnings (1)

1 unchanged sentence

Policyholder benefits and claims

380 800 1,013 —

Interest credited to policyholder account balances, excluding market value adjustments

897 75 290 163

Amortization of DAC and VOBA

1 unchanged sentence

Other expenses (2)

1,417 130 293 92

Provision for income tax expense (benefit)

247 16 22 ( 126 )

Net income (loss) attributable to noncontrolling interests

1 unchanged sentence

Adjusted earnings (loss)

$ 1,070 $ 78 $ 87 $ ( 51 ) 1,184

Adjustments for:

Net investment gains (losses)

Investment gains (losses) on trading securities —

Net derivative gains (losses), excluding investment hedge adjustments of $ 105

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_______________

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

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

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

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(In millions)

Annuities $ 163,830 $ 160,775

Life 26,261 25,504

Run-off 24,873 26,828

Corporate & Other

Total $ 238,537 $ 236,340

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

Years Ended December 31,

2024 2023 2022

(In millions)

2 unchanged sentences

Other products

Total $ 3,465 $ 3,606 $ 3,575

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

50 unchanged sentences

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

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

As part of the 2025 and 2024 annual actuarial reviews (“AAR”), the Company updated assumptions regarding mortality and lapses for term participating and non-participating whole life insurance.

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

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See Notes 2 and 7.

(2) The effect of changes in assumptions for ULSG liabilities, including the liability for profits followed by losses was ($ 1.2 ) billion for the year ended December 31, 2025.

(3) 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.

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Brighthouse Life Insurance Company has issued unsecured fixed and floating rate funding agreements to certain special purpose entities that have issued either debt securities or commercial paper for which payment of interest and principal is secured by such funding agreements.

The Company had obligations outstanding under these funding agreements of $ 5.5 billion at both December 31, 2024 and 2023.

The Company had obligations outstanding under these funding agreements of $ 4.3 billion and $ 5.5 billion at December 31, 2025 and 2024, respectively.

Brighthouse Life Insurance Company established a secured funding agreement-backed repurchase agreement program in January 2024.

Brighthouse Life Insurance Company may enter into repurchase agreements with bank counterparties and the proceeds of the repurchase agreements are then used by a special purpose entity to purchase funding agreements from Brighthouse Life Insurance Company.

The Company had obligations under this program of $ 500 million at December 31, 2024.

The Company had obligations under this program of $ 500 million at both December 31, 2025 and 2024.

Brighthouse Life Insurance Company has a secured funding agreement program with the Federal Home Loan Bank (“FHLB”) of Atlanta and the Federal Agricultural Mortgage Corporation and its affiliate Farmer Mac Mortgage Securities Corporation (“Farmer Mac”).

3 unchanged sentences

See Note 8 for information on invested assets pledged as collateral in connection with funding agreements.

Inactive Funding Agreement Programs

Brighthouse Life Insurance Company had obligations outstanding under inactive funding agreement programs of $ 25 million and $ 525 million at December 31, 2024 and 2023, respectively.

Market Risk Benefits

11 unchanged sentences

Effect of changes in fund returns ( 1,736 ) ( 973 ) ( 2,203 )

Effect of changes in equity index volatility 38 75 ( 106 )

Issuances ( 4 ) ( 4 ) ( 7 )

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_______________

(1) Amounts represent the sum of MRB assets and MRB liabilities presented on the consolidated balance sheets at December 31, 2024, 2023 and 2022, with the exception of $ 21 million, $ 9 million and $ 3 million, respectively, of index-linked annuities not included in this table.

(1) Amounts represent the sum of MRB assets and MRB liabilities presented on the consolidated balance sheets at December 31, 2025, 2024 and 2023, with the exception of $ 10 million, $ 21 million and $ 9 million, respectively, of index-linked annuity MRBs not included in this table.

Brighthouse Financial, Inc.

2 unchanged sentences

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

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

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

As part of the 2025 and 2024 AARs, the Company updated assumptions regarding policyholder behavior, mortality and separate account fund allocations.

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

30 unchanged sentences

$ 85,528 $ 85,636

Table of Conte nts

Brighthouse Financial, Inc.

137 unchanged sentences

Years Ended December 31,

2024 2023 2022

(In millions)

25 unchanged sentences

Information regarding the significant effects of reinsurance was as follows at:

Direct Assumed Ceded Total

Sheet Direct Assumed Ceded Total

Total Balance Sheet

(In millions)

1 unchanged sentence

Market risk benefit assets $ 1,052 $ — $ 8 $

$ 1,075 $ — $ 17 $

Future policy benefits $ 31,913 $ 112 $ — $

$ 31,366 $ 109 $ — $

Policyholder account balances $

8 unchanged sentences

The deposit liabilities on reinsurance were $ 3.2 billion and $ 3.8 billion at December 31, 2025 and 2024, respectively.

See Notes 1 and 10 for a description of the Company’s accounting policies for investments and the fair value hierarchy for investments and the related valuation methodologies.

See Note 1 for a description of the Company’s accounting policies for investments and Note 10 for information about the fair value hierarchy for investments and the related valuation methodologies.

Fixed Maturity Securities Available-For-Sale

1 unchanged sentence

Fixed maturity securities by sector were as follows at:

December 31, 2024 December 31, 2023

December 31, 2025

December 31, 2024

Amortized Cost

Allowance for Credit Losses Gross Unrealized Estimated Fair Value

Allowance for Credit Losses

Gross Unrealized

Estimated Fair Value

Amortized Cost

Allowance for Credit Losses Gross Unrealized Estimated Fair Value

Gains Losses Gains Losses

Allowance for Credit Losses

Gross Unrealized

Estimated Fair Value

(In millions)

corporate $ 40,894 $ 47 $ 215 $ 3,939 $ 37,123 $ 38,778 $ 15 $ 388 $ 3,396 $ 35,755

Foreign corporate

8,120 4 46 875 7,287 8,199 5 48 812 7,430

government and agency

6,776 4 6 422 6,356 7,023 1 2 614 6,410

6,354 — 33 75 6,312 6,514 — 23 131 6,406

State and political subdivision

4 unchanged sentences

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

Due in One Year or Less Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities

Due in One Year or Less

Due After One Year Through Five Years

Due After Five Years Through Ten Years

Due After Ten Years

Structured Securities

Total Fixed Maturity Securities

(In millions)

9 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:

December 31, 2024 December 31, 2023

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

Losses Estimated

December 31, 2025

December 31, 2024

Less than 12 Months

12 Months or Greater

Less than 12 Months

12 Months or Greater

Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses

(Dollars in millions)

corporate $ 10,764 $ 719 $ 17,660 $ 3,220 $ 4,554 $ 409 $ 22,796 $ 2,987

Foreign corporate

RMBS 1,223 81 4,647 794 413 20 5,774 792

government and agency

CMBS 1,326 90 4,402 332 411 33 5,786 581

ABS 717 10 1,081 65 572 3 3,360 128

State and political subdivision

40 unchanged sentences

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

Corporate Foreign Corporate RMBS CMBS Total

Foreign Corporate

(In millions)

4 unchanged sentences

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

3 — ( 1 ) — 2

Write-offs charged against allowance (1)

6 unchanged sentences

_______________

(1) The Company recorded total write-offs of $ 33 million and $ 12 million for the years ended December 31, 2025 and 2024, respectively.

5 unchanged sentences

Mortgage loans are summarized as follows at:

Total Carrying

(Dollars in millions)

Commercial $ 13,330 57.2 % $ 13,193 58.6 %

Agricultural 4,591 19.7 4,445 19.8

Residential 5,543 23.8 5,007 22.2

Total mortgage loans (1) 22,955

2 unchanged sentences

_______________

(1) Purchases of mortgage loans from third parties were $ 1.0 billion and $ 311 million for the years ended December 31, 2024 and 2023, respectively, and were primarily comprised of residential mortgage loans.

(1) Purchases of mortgage loans from third parties were $ 1.2 billion and $ 1.0 billion for the years ended December 31, 2025 and 2024, respectively, and were primarily comprised of residential mortgage loans.

Allowance for Credit Losses for Mortgage Loans

4 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 $ 132 million and $ 123 million at December 31, 2024 and 2023, respectively.

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

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

7 unchanged sentences

These situations include collateral dependent loans, modifications, foreclosure probable loans, and loans with dissimilar risk characteristics.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Investments (continued)

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

2 unchanged sentences

RPLs are pools of residential mortgage loans acquired at a discount or premium which have both credit and non-credit components.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Investments (continued)

For PCD mortgage loans, the allowance for credit losses is determined using a similar methodology described above, except the loss-rate is determined at the pool level instead of the individual loan level.

5 unchanged sentences

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

Commercial Agricultural Residential Total

(In millions)

Balance at December 31, 2023

$ 49 $ 15 $ 55 $ 119

Current period provision

4 unchanged sentences

Balance at December 31, 2025

$ 106 $ 30 $ 42 $ 178

Brighthouse Financial, Inc.

3 unchanged sentences

The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at:

2024 2023 2022 2021 2020 Prior Total

(In millions)

3 unchanged sentences

Less than 65%

65% to 75% 208 — 1,022 713 62 1,171 3,176

76% to 80% — — 117 201 174 602 1,094

Greater than 80%

3 unchanged sentences

Less than 65%

65% to 75% — 18 80 113 6 20 237

76% to 80% — — — — 1 — 1

Greater than 80%

1 unchanged sentence

Residential mortgage loans

Performing 586 222 1,268 1,640 146 1,563 5,425

Nonperforming

Total residential mortgage loans

Total $ 1,845 $ 642 $ 4,376 $ 5,999 $ 988 $ 9,614 $ 23,464

2023 2022 2021 2020 2019 Prior Total

(In millions)

3 unchanged sentences

Less than 65%

65% to 75% — 935 1,079 222 261 1,158 3,655

76% to 80% — 427 76 39 209 564 1,315

Greater than 80%

3 unchanged sentences

Less than 65%

65% to 75% 1 127 108 6 30 17 289

76% to 80% — — — — — — —

Greater than 80%

1 unchanged sentence

Residential mortgage loans

Performing 105 1,286 1,669 145 204 1,508 4,917

Nonperforming

Total residential mortgage loans

Total $ 514 $ 4,423 $ 6,136 $ 1,044 $ 2,600 $ 7,928 $ 22,645

Brighthouse Financial, Inc.

8 unchanged sentences

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

Amortized Cost % of

Total Amortized Cost % of

Amortized Cost

(Dollars in millions)

3 unchanged sentences

Less than 1.00x

Total $ 13,330 100.0 % $ 13,193 100.0 %

The debt-service coverage ratio compares a property’s net operating income to its debt-service payments.

7 unchanged sentences

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

Commercial Agricultural Residential Total Commercial Agricultural Residential Total

(In millions)

Current $ 13,210 $ 4,566 $ 5,423 $ 23,199 $ 13,176 $ 4,429 $ 4,915 $ 22,520

30-59 days past due

2 unchanged sentences

180+ days past due

Total $ 13,330 $ 4,591 $ 5,543 $ 23,464 $ 13,193 $ 4,445 $ 5,007 $ 22,645

Mortgage Loans in Nonaccrual Status by Portfolio Segment

Mortgage loans are placed in a nonaccrual status if there are concerns regarding collectability of future payments or the loan is past due, unless the past due loan is well collateralized.

Brighthouse Financial, Inc.

1 unchanged sentence

Investments (continued)

Mortgage Loans in Nonaccrual Status by Portfolio Segment

Mortgage loans are placed in a nonaccrual status if there are concerns regarding collectability of future payments or the loan is past due, unless the past due loan is well collateralized.

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

Commercial Agricultural Residential (1) Total

Residential (1)

(In millions)

2 unchanged sentences

_______________

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

The Company did not have any mortgage loans in nonaccrual status for which there was no related allowance for credit losses at December 31, 2023.

Current period investment income on mortgage loans in nonaccrual status was $ 6 million and $ 2 million for December 31, 2024 and 2023, respectively.

(1) The Company had $ 54 million and $ 3 million of mortgage loans in nonaccrual status for which there was no related allowance for credit losses at December 31, 2025 and 2024, respectively.

Current period investment income on mortgage loans in nonaccrual status was $ 9 million and $ 6 million for the years ended December 31, 2025 and 2024, respectively.

Modified Mortgage Loans by Portfolio Segment

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

Under certain circumstances, modifications are granted to mortgage loans.

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

As of December 31, 2024, the Company has $ 386 million of commercial mortgage loans that were modified under a term extension during the year which represent 2 % of the carrying value of total mortgage loans.

All commercial mortgage loans that were modified are current as of December 31, 2024.

The Company did not have a significant amount of agricultural and residential mortgage loans modified during the year ended December 31, 2024.

The Company did not have a significant amount of mortgage loans modified during the year ended December 31, 2023.

The Company did not have a significant amount of commercial mortgage loans modified during the year ended December 31, 2025.

The Company had $ 386 million of commercial mortgage loans modified under a term extension which represented 2 % of the carrying value of total mortgage loans at December 31, 2024.

The Company did not have a significant amount of agricultural and residential mortgage loans modified during both years ended December 31, 2025 and 2024.

Other Invested Assets

3 unchanged sentences

Leveraged Leases

The carrying value of leveraged leases was $ 60 million and $ 47 million at December 31, 2024 and 2023, respectively.

The allowance for credit losses was less than $ 1 million and $ 13 million at December 31, 2024 and 2023, respectively.

The carrying value of leveraged leases was $ 60 million at both December 31, 2025 and 2024.

The allowance for credit losses was less than $ 1 million at both December 31, 2025 and 2024.

Rental receivables are generally due in periodic installments.

The payment periods for leveraged leases generally range from one to eight years .

The payment periods for leveraged leases generally range from one to seven years.

For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or nonperforming, which is assessed monthly.

6 unchanged sentences

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

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

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

Years Ended December 31,

2024 2023 2022

(In millions)

Fixed maturity securities

Derivatives 469 351 638

Other ( 12 ) 2 3

Subtotal ( 7,010 ) ( 5,766 ) ( 8,119 )

Amounts allocated from:

4 unchanged sentences

Years Ended December 31,

2024 2023 2022

(In millions)

24 unchanged sentences

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

December 31, 2024 December 31, 2023

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

December 31, 2025

December 31, 2024

1 Month or Less

1 to 6 Months

1 Month or Less

1 to 6 Months

(In millions)

government and agency

corporate — 248 — 248 — 252 — 252

Foreign corporate

Foreign government

Total $ 490 $ 1,834 $ 886 $ 3,210 $ 647 $ 1,046 $ 1,584 $ 3,277

_______________

4 unchanged sentences

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 51 % invested in agency RMBS, U.S.

government and agency securities, U.S.

and foreign corporate securities, non-agency RMBS and CMBS) with 50 % invested in agency RMBS, U.S.

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

37 unchanged sentences

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:

Amount Maximum

to Loss Carrying

Amount Maximum

Carrying Amount

Maximum Exposure to Loss

Carrying Amount

Maximum Exposure to Loss

(In millions)

1 unchanged sentence

Limited partnerships and LLCs

Total $ 18,611 $ 20,752 $ 19,759 $ 22,026

Brighthouse Financial, Inc.

21 unchanged sentences

Years Ended December 31,

2024 2023 2022

(In millions)

1 unchanged sentence

Fixed maturity securities

Trading securities (1)

Equity securities

Mortgage loans

Policy loans 69 67 64

Limited partnerships and LLCs (2)

Cash, cash equivalents and short-term investments

Other 107 87 69

Total investment income

2 unchanged sentences

_______________

(1) Investment gains (losses) were less than ($ 1 ) million related to trading securities still held for the year ended December 31, 2025.

There were no investment gains (losses) related to trading securities still held for the years ended December 31, 2024 and 2023.

(2) Includes net investment income pertaining to other limited partnership interests of $ 332 million, $ 367 million and $ 187 million for the years ended December 31, 2025, 2024 and 2023, respectively.

6 unchanged sentences

Years Ended December 31,

2024 2023 2022

(In millions)

3 unchanged sentences

Limited partnerships and LLCs

Other 14 ( 2 ) ( 2 )

Total net investment gains (losses) (2)

Gains (losses) from foreign currency transactions included within net investment gains (losses) were ($ 3 ) million, ($ 2 ) million and ($ 17 ) million for the years ended December 31, 2024, 2023 and 2022, respectively.

_______________

(1) In July 2025, the Company sold a subsidiary which owned certain mineral rights across the U.S.

and recognized a gain of $ 66 million for the year ended December 31, 2025.

(2) Gains (losses) from foreign currency transactions included within net investment gains (losses) were not significant for the year ended December 31, 2025 and were ($ 3 ) million and ($ 2 ) million for the years ended December 31, 2024 and 2023, respectively.

Sales or Disposals of Fixed Maturity Securities

2 unchanged sentences

Years Ended December 31,

2024 2023 2022

(In millions)

Proceeds $ 3,520 $ 2,301 $ 6,640

Gross investment gains

2 unchanged sentences

Accounting for Derivatives

See Note 1 for a description of the Company’s accounting policies for derivatives and Note 10 for information about the fair value hierarchy for derivatives.

See Note 1 for a description of the Company’s accounting policies for derivatives and Note 10 for information about the fair value hierarchy for derivatives and the related valuation methodologies.

Derivative Strategies

The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to minimize its exposure to various market risks, including interest rate, foreign currency exchange rate, credit and equity market.

The Company has historically managed the risks related to its variable annuity and first generation Shield Annuity contracts on a combined basis.

In the third quarter of 2025, the Company completed an initiative that established a standalone hedging program for each product allowing the Company to separately manage the risks related to these two products.

Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices.

50 unchanged sentences

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

Primary Underlying Risk Exposure Gross Notional Amount Estimated Fair Value Gross Notional Amount Estimated Fair Value

Assets Liabilities Assets Liabilities

Primary Underlying Risk Exposure

Gross Notional Amount Estimated Fair Value

(In millions)

1 unchanged sentence

Cash flow hedges:

Interest rate swaps Interest rate $ 500 $ 9 $ — $ — $ — $ —

Foreign currency swaps Foreign currency exchange rate 3,823 439 25 3,939 348 45

Interest rate swaps

Interest rate

Foreign currency swaps

Foreign currency exchange rate

Total qualifying hedges

Derivatives Not Designated or Not Qualifying as Hedging Instruments:

Interest rate swaps Interest rate 69,303 131 444 31,252 140 103

Interest rate floors Interest rate 8,000 1 30 3,500 7 1

Interest rate caps Interest rate 7,850 14 14 7,050 19 1

Interest rate futures Interest rate 171 — — — — —

Interest rate options Interest rate 23,060 11 371 33,680 47 167

Interest rate forwards Interest rate 16,352 121 1,876 17,017 32 1,937

Foreign currency swaps Foreign currency exchange rate 685 113 — 747 101 1

Foreign currency forwards Foreign currency exchange rate 386 12 — 535 — 9

Credit default swaps — written Credit 780 19 — 1,405 27 —

Interest rate swaps

Interest rate

Interest rate floors

Interest rate

Interest rate caps

Interest rate

Interest rate futures

Interest rate

Interest rate options

Interest rate

Interest rate forwards

Interest rate

Foreign currency swaps

Foreign currency exchange rate

Foreign currency forwards

Foreign currency exchange rate

Credit default swaps — written

Equity futures

1 unchanged sentence

1,414 6 4 316 — 1

Equity index options Equity market 39,897 1,722 1,041 20,099 757 687

Equity total return swaps Equity market 106,301 1,543 1,446 53,742 2,236 2,137

Hybrid options Equity market — — — 270 — —

Equity index options

Equity market

Equity total return swaps

Equity market

Total non-designated or non-qualifying derivatives

Total $ 277,424 $ 4,135 $ 5,248 $ 173,236 $ 3,714 $ 5,088

Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both December 31, 2024 and 2023.

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

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

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

and (iv) written credit default swaps that are used to create synthetic credit investments and that do not qualify for hedge accounting because they do not involve a hedging relationship.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Derivatives (continued)

The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items reported in net derivative gains (losses) were as follows:

Year Ended December 31, 2025

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

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)

7 unchanged sentences

Foreign currency exchange rate

Credit 14 — — — —

Equity market

Embedded ( 3,951 ) — — — —

Total non-qualifying hedges

Total $ ( 3,649 ) $ ( 19 ) $ 54 $ 8 $ 136

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Derivatives (continued)

Year Ended December 31, 2024

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)

7 unchanged sentences

Foreign currency exchange rate

Credit 32 — — — —

Equity market

Embedded ( 4,097 ) — — — —

Total non-qualifying hedges

Total $ ( 3,886 ) $ ( 21 ) $ 55 $ — $ ( 276 )

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Derivatives (continued)

Year Ended December 31, 2023

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)

7 unchanged sentences

Foreign currency exchange rate

Credit ( 2 ) — — — —

Equity market

Embedded 2,743 — — — —

Total non-qualifying hedges

Total $ ( 532 ) $ ( 60 ) $ 57 $ — $ 331

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

At December 31, 2025 and 2024, the balance in AOCI associated with cash flow hedges was $ 224 million and $ 469 million, respectively.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Derivatives (continued)

Credit Derivatives

2 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:

Rating Agency Designation of Referenced

Credit Obligations (1) Estimated

Swaps Maximum

Payments under

Credit Default

Swaps Weighted Average Years to Maturity (2) Estimated

Swaps Maximum

Payments under

Credit Default

Swaps Weighted Average Years to Maturity (2)

Rating Agency Designation of Referenced Credit Obligations (1) Estimated Fair Value of Credit Default Swaps Maximum Amount of Future Payments under Credit Default Swaps Weighted Average Years to Maturity (2) Estimated Fair Value of Credit Default Swaps Maximum Amount of Future Payments under Credit Default Swaps Weighted Average Years to Maturity (2)

(Dollars in millions)

Aaa/Aa/A $ 2 $ 100 2.7 $ 6 $ 419 1.6

Baa 7 300 4.5 19 958 4.9

Ba 10 376 4.8 2 24 3.0

Caa and Lower

Total $ 19 $ 780 4.4 $ 27 $ 1,405 3.9

_______________

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

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

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

If no rating is available from a rating agency, then an internally developed rating is used.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Derivatives (continued)

(2) The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts.

8 unchanged sentences

See Note 10 for a description of the impact of credit risk on the valuation of derivatives.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Derivatives (continued)

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

Gross Amounts Not Offset on the Consolidated Balance Sheets

Gross Amount Recognized Financial Instruments (1) Collateral Received/Pledged (2) Net Amount Securities Collateral Received/Pledged (3) Net Amount After Securities Collateral

Gross Amount Recognized

Financial Instruments (1)

Collateral Received/Pledged (2)

Securities Collateral Received/Pledged (3)

Net Amount After Securities Collateral

(In millions)

12 unchanged sentences

Certain of these arrangements also include credit-contingent provisions which permit the party with positive fair value to terminate the derivative at the current fair value or demand immediate full collateralization from the party in a net liability position, in the event that the financial strength or credit rating of the party in a net liability position falls below a certain level.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Derivatives (continued)

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:

8 unchanged sentences

Additionally, the Company is required to pledge initial margin for certain new OTC-bilateral derivative transactions to third-party custodians.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

When developing estimated fair values, the Company considers three broad valuation techniques:

25 unchanged sentences

government and agency 2,450 4,261 — 6,711

CMBS — 6,330 26 6,356

— 5,814 245 6,059

CMBS — 5,870 — 5,870

State and political subdivision — 3,494 — 3,494

1 unchanged sentence

Total fixed maturity securities 2,450 78,471 1,093 82,014

Trading securities

Equity securities

Short-term investments

918 273 6 1,197

Derivative assets:

30 unchanged sentences

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

CMBS — 6,371 39 6,410

ABS — 5,990 322 6,312

CMBS — 6,330 26 6,356

State and political subdivision — 3,441 — 3,441

1 unchanged sentence

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

Trading securities

Equity securities

8 unchanged sentences

Market risk benefit assets

— — 1,092 1,092

Separate account assets 3 85,633 — 85,636

37 unchanged sentences

Fixed Maturity Securities

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

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

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

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

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

corporate and foreign corporate securities:

17 unchanged sentences

Fair Value (continued)

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

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

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

52 unchanged sentences

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

December 31, 2024 December 31, 2023 Impact of

Increase in Input

Valuation Techniques Significant

Unobservable Inputs Range Range

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

Valuation Techniques Significant Unobservable Inputs

Market Risk Benefits

129 unchanged sentences

Fair Value Hierarchy

Value Level 1 Level 2 Level 3 Total

Carrying Value

Level 1 Level 2 Level 3 Total Estimated Fair Value

(In millions)

12 unchanged sentences

Fair Value Hierarchy

Value Level 1 Level 2 Level 3 Total

Carrying Value

Level 1 Level 2 Level 3 Total Estimated Fair Value

(In millions)

9 unchanged sentences

Long-term debt outstanding was as follows at:

Stated Interest Rate Maturity Face Value Carrying Value Face Value Carrying Value

Stated Interest Rate

Carrying Value Face

Carrying Value

(In millions)

3 unchanged sentences

Senior notes (1)

3.850 % 2051 400 397 400 397

Junior subordinated debentures (1)

6 unchanged sentences

(3) Includes unamortized debt issuance costs, discounts and premiums, as applicable, totaling net $ 26 million and $ 27 million for the senior notes and junior subordinated debentures on a combined basis at December 31, 2025 and 2024, respectively.

The aggregate maturities of long-term debt at December 31, 2024 were $ 3 million in 2025 and 2026, $ 761 million in 2027, $ 3 million in 2028, $ 4 million in 2029, and $ 2.4 billion thereafter.

The aggregate maturities of long-term debt at December 31, 2025 were $ 3 million in 2026, $ 761 million in 2027, $ 3 million in 2028, $ 4 million in 2029, $ 619 million in 2030, and $ 1.8 billion thereafter.

Unsecured senior notes rank highest in priority, followed by subordinated debt consisting of junior subordinated debentures.

8 unchanged sentences

Revolving Credit Facility

On April 15, 2022, BHF entered into a new revolving credit agreement with respect to a new $ 1.0 billion senior unsecured revolving credit facility maturing April 15, 2027 (the “2022 Revolving Credit Facility”), all of which may be used for revolving loans or letters of credit.

The 2022 Revolving Credit Facility refinanced and replaced BHF’s former $ 1.0 billion senior unsecured revolving credit facility that was scheduled to mature May 7, 2024.

At December 31, 2024, there were no borrowings or letters of credit outstanding under the 2022 Revolving Credit Facility.

BHF has a $ 1.0 billion senior unsecured revolving credit facility maturing April 15, 2027, all of which may be used for revolving loans or letters of credit.

At December 31, 2025, there were no borrowings or letters of credit outstanding under this facility.

Committed Facilities

7 unchanged sentences

At December 31, 2025, there were no borrowings under the Repurchase Facilities.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Preferred Stock

Preferred stock shares authorized, issued and outstanding were as follows at:

Shares Authorized Shares Issued Shares Outstanding Shares Authorized Shares Issued Shares Outstanding

Shares Authorized

Shares Issued

Shares Outstanding

Shares Authorized

Shares Issued

Shares Outstanding

6.600 % Non-Cumulative Preferred Stock, Series A

17,000 17,000 17,000 17,000 17,000 17,000

6.750 % Non-Cumulative Preferred Stock, Series B

16,100 16,100 16,100 16,100 16,100 16,100

5.375 % Non-Cumulative Preferred Stock, Series C

1 unchanged sentence

4.625 % Non-Cumulative Preferred Stock, Series D

14,000 14,000 14,000 14,000 14,000 14,000

Not designated

Total 100,000,000 70,100 70,100 100,000,000 70,100 70,100

In November 2021, BHF issued depositary shares (the “Series D Depositary Shares”), each representing a 1/1,000th ownership interest in a share of BHF’s perpetual 4.625 % Series D non-cumulative preferred stock (the “Series D Preferred Stock”) and in the aggregate representing 14,000 shares of Series D Preferred Stock, with a stated amount of $ 25,000 per share, for aggregate net cash proceeds of $ 339 million.

1 unchanged sentence

In connection with the issuance of the Series D Depositary Shares and the underlying Series D Preferred Stock, BHF incurred $ 11 million of issuance costs, which have been recorded as a reduction of additional paid-in capital.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Equity (continued)

In November 2020, BHF issued depositary shares (the “Series C Depositary Shares”), each representing a 1/1,000th ownership interest in a share of BHF’s perpetual 5.375 % Series C non-cumulative preferred stock (the “Series C Preferred Stock”) and in the aggregate representing 23,000 shares of Series C Preferred Stock, with a stated amount of $ 25,000 per share, for aggregate net cash proceeds of $ 558 million.

7 unchanged sentences

In connection with the issuance of the depositary shares and the underlying Series A Preferred Stock, BHF incurred $ 13 million of issuance costs, which have been recorded as a reduction of additional paid-in capital.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Equity (continued)

The Series A Preferred Stock, the Series B Preferred Stock, Series C Preferred Stock and the Series D Preferred Stock (together, the “Preferred Stock”) rank equally with each other.

9 unchanged sentences

Prior to the optional redemption date applicable to each series of Preferred Stock, the Preferred Stock is redeemable at the Company’s option in whole but not in part within 90 days of the occurrence of (i) a specified rating agency event or (ii) a specified regulatory capital event, in each case at a specified redemption price.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Equity (continued)

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

1 unchanged sentence

2025 2024 2023

Series Per Share Aggregate Per Share Aggregate Per Share Aggregate

Per Share Aggregate Per Share Aggregate Per Share Aggregate

(In millions, except per share data)

A $ 1,650.00 $ 28 $ 1,650.00 $ 28 $ 1,650.00 $ 28

B $ 1,687.52 28 $ 1,687.52 28 $ 1,687.52 28

C $ 1,343.76 30 $ 1,343.76 30 $ 1,343.76 31

D $ 1,156.24 16 $ 1,156.24 16 $ 1,262.23 17

Total $ 102 $ 102 $ 104

See Note 18 for information relating to preferred dividends declared subsequent to December 31, 2025 .

1 unchanged sentence

Years Ended December 31,

2024 2023 2022

Shares outstanding at beginning of year

1 unchanged sentence

Shares repurchased (1)

( 2,059,473 )

( 5,536,064 )

( 5,439,859 )

Shares outstanding at end of year

1 unchanged sentence

(1) Includes shares of common stock withheld with respect to tax withholding obligations associated with the vesting of share-based compensation awards under the Company’s publicly announced benefit plans or programs.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Equity (continued)

On November 16, 2023, BHF authorized the repurchase of up to $ 750 million of its common stock, which is in addition to the $ 1.2 billion total repurchases authorized in 2021.

2 unchanged sentences

At December 31, 2025, BHF had $ 441 million remaining under its common stock repurchase program.

Pursuant to the Merger Agreement, the Company has agreed that during the period beginning the date of the Merger Agreement through the earlier of the closing of the Merger and the termination of the Merger Agreement, it will not, subject to certain exceptions, purchase directly or indirectly any of BHF’s or its subsidiaries’ capital stock or other equity or voting interests of BHF or any of its subsidiaries.

Share-Based Compensation Plans

The Company’s share-based compensation plans provide awards to employees and non-employee directors and may be in the form of non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units (“RSU”), performance shares, performance share units (“PSU”), or other share-based awards.

Additionally, employees may purchase shares at a discount under an employee stock purchase plan (the “ESPP”).

Additionally, under an employee stock purchase plan (the “ESPP”), eligible employees of the Company purchased common stock at a 15% discounted rate.

Pursuant to the Merger Agreement, the ESPP has been suspended so that no further offering periods, beyond the close of the offering period ending on December 31, 2025, will commence after the date of the Merger Agreement.

The aggregate number of authorized shares available for issuance at December 31, 2025 under the Company’s various share-based compensation plans was 5,188,257 .

The Company issues new shares to satisfy vested RSUs and PSUs, as well as stock option exercises.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Equity (continued)

Unless otherwise noted, all share-based compensation is measured at fair value as of the grant date.

6 unchanged sentences

Years Ended December 31,

2024 2023 2022

(In millions)

RSUs $ 14 $ 13 $ 13

Employee stock purchase plan

9 unchanged sentences

Vesting is subject to continued service, except for employees who meet specified age and service criteria, and in certain other limited circumstances.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Equity (continued)

Pursuant to the Merger Agreement and at the Effective Time, any RSUs granted prior to November 6, 2025 that are outstanding immediately prior to the Effective Time will be deemed to be fully vested and non-forfeitable.

Each such RSU will be canceled at the Effective Time and converted into the right to receive a cash payment based on the Merger Consideration.

Any RSUs granted to an employee after November 6, 2025, if any, will be canceled and converted into a contingent right to receive a cash payment based on the Merger Consideration, which will vest in one-third installments on each of the first through third anniversaries of the applicable grant date.

Performance Share Units

2 unchanged sentences

Vesting is subject to continued service, except for employees who meet specified age and service criteria, and in certain other limited circumstances.

For awards granted during fiscal years 2022 and 2023, the performance factors are based on the achievement of net cash flow to BHF, Brighthouse Services, LLC and Brighthouse Holdings, LLC (“BH Holdings”) and statutory expense ratio targets over the respective performance period depending on the year of issue.

For awards granted during fiscal year 2023, the performance factors are based on the achievement of net cash flow to BHF, Brighthouse Services, LLC and Brighthouse Holdings, LLC (“BH Holdings”) and statutory expense ratio targets over the respective performance period depending on the year of issue.

The vested PSUs will be multiplied by a performance factor up to a maximum payout of 150 %.

Assuming the Company has met certain threshold performance targets, the Compensation and Human Capital Committee of BHF’s Board of Directors will determine the final performance factor at its discretion.

For awards granted during fiscal year 2024, the performance factors are based on the achievement of net cash flow to BHF, Brighthouse Services, LLC and BH Holdings over the performance period and statutory expense ratio targets over the performance period, subject to a potential 10 % modifier based on BHF’s relative total shareholder return (“rTSR”) over the same three-year period compared to a peer group of companies.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Equity (continued)

For awards granted during fiscal years 2024 and 2025, the performance factors are based on the achievement of net cash flow to BHF, Brighthouse Services, LLC and BH Holdings over the performance period and statutory expense ratio targets over the performance period, subject to a potential 10 % modifier based on BHF’s relative total shareholder return (“rTSR”) over the same three-year period compared to a peer group of companies.

For these awards, the Company measures fair value using a Monte Carlo simulation that considers the Company’s projected rTSR relative to a defined group of peers as well as other inputs to estimate the grant date fair value of awards.

T he vested PSUs will be multiplied by a performance factor, as well as subject to an rTSR modifier, resulting in a maximum possible payout of 160 %.

The vested PSUs will be multiplied by a performance factor, as well as subject to an rTSR modifier, resulting in a maximum possible payout of 160 %.

Pursuant to the Merger Agreement and at the Effective Time, each PSU outstanding immediately prior to the Effective Time will be deemed to be fully vested and non-forfeitable.

Each PSU will be canceled at the Effective Time and converted into the right to receive a cash payment based on the Merger Consideration.

The number of shares of common stock subject to each PSU will be determined assuming achievement of the performance vesting conditions applicable to such award at the target level; provided that, if the performance period applicable to any PSU ended prior to the Effective Time, such determination will be based on the actual level of achievement of the applicable performance vesting conditions.

The following table presents a summary of PSU and RSU activity:

Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value

Weighted Average Grant Date Fair Value

Nonvested at January 1, 2025

516,968 $ 50.57 820,177 $ 48.40

Granted 332,770 $ 46.27 301,776 $ 46.16

Performance factor adjustment

Forfeited ( 8,528 ) $ 50.27 ( 14,459 ) $ 50.50

Vested ( 272,802 ) $ 48.12 ( 321,260 ) $ 41.26

Nonvested at December 31, 2025

568,408 $ 49.24 807,218 $ 50.18

The weighted average grant date fair value of RSUs granted during the years ended December 31, 2024 and 2023, was $ 46.27 and $ 56.35 , respectively.

13 unchanged sentences

and expected option life.

At December 31, 2024, there were 187,371 stock options outstanding and exercisable with a weighted average exercise price of $ 53.47 and aggregate intrinsic value of $ 0 , which expire on February 29, 2028.

During the year ended December 31, 2024, there were no stock options granted, exercised, forfeited or expired.

At December 31, 2025, there were 166,769 stock options outstanding and exercisable with a weighted average exercise price of $ 53.47 and aggregate intrinsic value of $ 2 million, which expire on February 29, 2028.

During the year ended December 31, 2025, there were 20,602 stock options exercised with an intrinsic value of less than $ 1 million and no stock options granted, forfeited or expired.

During the years ended December 31, 2024 and 2023, no stock options were granted or exercised.

Pursuant to the Merger Agreement and at the Effective Time, each stock option outstanding immediately prior to the Effective Time will be deemed to be fully vested and non-forfeitable.

Each such stock option will be canceled at the Effective Time and converted into the right to receive a cash payment based on the Merger Consideration.

Brighthouse Financial, Inc.

2 unchanged sentences

Employee Stock Purchase Plan Shares

Under the ESPP, eligible employees of the Company purchase common stock at a discount rate of 15 % of the market price per share on the lesser of the first or last trading day of the offering period.

Employees purchase a variable number of shares of stock through payroll deductions elected just prior to the beginning of the offering period.

Under the ESPP, eligible employees of the Company purchased common stock at a discount rate of 15 % of the market price per share on the lesser of the first or last trading day of the offering period.

Employees purchased a variable number of shares of stock through payroll deductions elected just prior to the beginning of the offering period.

During the years ended December 31, 2025, 2024 and 2023, employees purchased 64,543 shares, 76,572 shares and 77,598 shares, respectively.

The weighted average per share fair value of the discount under the ESPP was $ 13.41 , $ 8.54 and $ 9.04 during the years ended December 31, 2025, 2024 and 2023, respectively, which was recorded in other expenses.

Pursuant to the Merger Agreement, the ESPP has been suspended so that no further offering periods, after the close of the offering period ending on December 31, 2025, will commence after the date of the Merger Agreement.

Statutory Financial Information

10 unchanged sentences

Years Ended December 31,

Company State of Domicile 2024 2023 2022

State of Domicile

(In millions)

Brighthouse Life Insurance Company Delaware $ ( 787 ) $ ( 3,131 ) $ 1,373

New England Life Insurance Company Massachusetts $ 65 $ 41 $ 83

Brighthouse Life Insurance Company

New England Life Insurance Company

Massachusetts

Statutory capital and surplus was as follows at:

Company 2024 2023

(In millions)

2 unchanged sentences

The Company has a reinsurance subsidiary, BRCD, which reinsures risks including level premium term life and ULSG assumed from other Brighthouse Financial life insurance subsidiaries.

BRCD, with the explicit permission of the Delaware Insurance Commissioner (“Delaware Commissioner”), has included the value of credit-linked notes as admitted assets, which resulted in higher statutory capital and surplus of $ 11.5 billion and $ 11.0 billion for the years ended December 31, 2024 and 2023, respectively.

The statutory net income (loss) of BRCD was ($ 120 ) million, ($ 447 ) million and ($ 300 ) million for the years ended December 31, 2025, 2024 and 2023, respectively, and the combined statutory capital and surplus, including the aforementioned prescribed practices, were $ 678 million and $ 703 million at December 31, 2025 and 2024, respectively.

4 unchanged sentences

The table below sets forth the dividends permitted to be paid by certain of the Company’s insurance companies without insurance regulatory approval and dividends paid:

2025 2024 2023 2022

Company Permitted Without Approval (1) Paid (2) Paid (2) Paid (2)

Permitted Without Approval (1)

(In millions)

Brighthouse Life Insurance Company (3)

$ — $ — $ 266 $ —

New England Life Insurance Company

34 unchanged sentences

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

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

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

(In millions)

Balance at December 31, 2022

$ 5,285 $ 239 $ ( 3,230 ) $ ( 2,199 ) $ ( 48 ) $ 47

OCI before reclassifications

4 unchanged sentences

Deferred income tax benefit (expense) (3)

( 50 ) 4 — — — ( 46 )

Amounts reclassified from AOCI, net of income tax

Balance at December 31, 2023

( 6,194 ) 504 ( 1,378 ) 1,020 ( 58 ) ( 6,106 )

OCI before reclassifications

Deferred income tax benefit (expense) (3)

( 451 ) 58 133 80 ( 2 ) ( 182 )

AOCI before reclassifications, net of income tax

1 unchanged sentence

Deferred income tax benefit (expense) (3)

( 47 ) 2 — — ( 1 ) ( 46 )

Amounts reclassified from AOCI, net of income tax

Balance at December 31, 2024

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

OCI before reclassifications

4 unchanged sentences

Deferred income tax benefit (expense) (3)

( 40 ) 4 — — ( 1 ) ( 37 )

Amounts reclassified from AOCI, net of income tax

1 unchanged sentence

_______________

(1) See Note 8 for information on offsets to investments related to future policy benefits.

6 unchanged sentences

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

AOCI Components Amounts Reclassified from AOCI Consolidated Statements of Operations Locations

AOCI Components

Amounts Reclassified from AOCI

Consolidated Statements of Operations Locations

Years Ended December 31,

2024 2023 2022

(In millions)

Net unrealized investment gains (losses):

Net unrealized investment gains (losses) $ ( 174 ) $ ( 198 ) $ ( 186 ) Net investment gains (losses)

Net unrealized investment gains (losses) ( 15 ) ( 28 ) ( 52 ) Net derivative gains (losses)

Net unrealized investment gains (losses)

$ ( 70 ) $ ( 174 ) $ ( 198 ) Net investment gains (losses)

Net unrealized investment gains (losses)

( 6 ) ( 15 ) ( 28 ) Net derivative gains (losses)

Net unrealized investment gains (losses), before income tax

2 unchanged sentences

Unrealized gains (losses) on derivatives - cash flow hedges:

Interest rate swaps 2 1 5 Net derivative gains (losses)

Interest rate swaps 3 3 4 Net investment income

Foreign currency swaps 13 7 13 Net derivative gains (losses)

Interest rate swaps

3 2 1 Net derivative gains (losses)

Interest rate swaps

3 3 3 Net investment income

Foreign currency swaps

— 13 7 Net derivative gains (losses)

Gains (losses) on cash flow hedges, before income tax

Income tax (expense) benefit

( 1 ) ( 4 ) ( 2 )

Gains (losses) on cash flow hedges, net of income tax

1 unchanged sentence

Amortization of net actuarial gains (losses)

( 6 ) ( 6 ) ( 7 )

Amortization of defined benefit plans, before income tax

16 unchanged sentences

Years Ended December 31,

2024 2023 2022

(In millions)

Compensation $ 408 $ 418 $ 351

Contracted services and other labor costs

Transition services agreements

Establishment costs — — 66

Premium and other taxes, licenses and fees

2 unchanged sentences

Interest expense on debt

Other 77 95 187

Total other expenses

12 unchanged sentences

These pension and other unfunded benefit plans were amended to cease benefit accruals and are closed to new entrants.

The qualified defined benefit pension plan had an accumulated benefit obligation of $ 122 million and $ 129 million at December 31, 2024 and 2023, respectively.

This plan was fully funded with assets in excess of the accumulated benefit obligation of $ 5 million at both December 31, 2024 and 2023.

The qualified defined benefit pension plan had an accumulated benefit obligation of $ 122 million at both December 31, 2025 and 2024.

This plan was fully funded with assets in excess of the accumulated benefit obligation of $ 7 million and $ 5 million at December 31, 2025 and 2024, respectively.

The Company did no t make any employer contributions to this qualified plan during 2025 or 2024.

2 unchanged sentences

The other unfunded benefit plans consist primarily of deferred compensation due to former agents which represent general unsecured liabilities of NELICO.

The amounts due under these other unfunded benefit plans were $ 58 million and $ 57 million at December 31, 2024 and 2023, respectively.

The amounts due under these other unfunded benefit plans were $ 58 million at both December 31, 2025 and 2024.

Although NELICO remains the legal obligor for these plans, an employee matters agreement (“EMA”) exists between BHF and MetLife, whereby MetLife has agreed to reimburse BHF for the obligations under the non-qualified and other unfunded plans as payments are made.

19 unchanged sentences

2025 2024 2023

(Dollars in millions)

Tax provision at statutory rate $ 88 $ ( 310 ) $ 994

Tax effect of:

Resolution of prior years

(In millions)

Percent Amount

(In millions)

Percent Amount

(In millions)

Federal statutory tax rate $ 100 21 % $ 88 21 % $ ( 310 ) 21 %

State and local income taxes, net of federal income tax effect (1) 12 3 % 10 2 % 9 ( 1 ) %

Foreign tax credits ( 32 ) ( 7 ) % ( 31 ) ( 7 ) % ( 2 ) — %

General business tax credits — — % — — % ( 7 ) — %

Change in valuation allowance — — % — — % ( 18 ) 2 %

Nontaxable or nondeductible items

Dividends received deduction ( 36 ) ( 7 ) % ( 41 ) ( 9 ) % ( 39 ) 3 %

Tax credits ( 25 ) ( 9 ) ( 20 )

Change in uncertain tax benefits

( 18 ) — ( 15 )

Return to provision

( 12 ) ( 5 ) ( 6 )

Tax advantaged investment income ( 10 ) ( 2 ) % ( 7 ) ( 1 ) % ( 5 ) — %

Merger related costs 7 1 % — — % — — %

Nondeductible compensation 5 1 % 4 1 % 5 — %

Other — — % 3 — % — — %

Change in unrecognized tax benefits — — % ( 18 ) ( 4 ) % — — %

Other reconciling items

Adjustments to deferred tax ( 10 ) ( 2 ) % 14 3 % — — %

Change in valuation allowance — ( 18 ) —

State tax, net of federal benefit

Other, net — — ( 1 )

Provision for income tax expense (benefit) $ 29 $ ( 367 ) $ 848

Resolution of prior years — — % 6 1 % — — %

Other — — % 1 — % — — %

Effective tax rate $ 36 8 % $ 29 7 % $ ( 367 ) 25 %

______________

(1) State income taxes in North Carolina, New York, and Florida for 2025, North Carolina, Florida, and Pennsylvania for 2024, and North Carolina, South Carolina, and Pennsylvania for 2023 made up the majority (greater than 50 %) of the tax effect in this category.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Income Tax (continued)

The income taxes paid (net of refunds) by jurisdiction for the years ended December 31, 2025, 2024, and 2023, as reported in the Consolidated Statements of Cash Flows, was as follows:

Years Ended December 31,

2025 2024 2023

Jurisdiction (In millions)

Federal $ ( 5 ) $ ( 1 ) $ ( 5 )

North Carolina 4 5 4

New York 3 * *

Florida 2 3 1

South Carolina 1 1 1

Pennsylvania 1 1 1

New Jersey 1 1 1

California 1 * *

New York City, NY ( 1 ) * 1

Massachusetts * 1 1

Other Jurisdictions (1) 5 2 2

$ 12 $ 13 $ 7

_______________

(1) Includes all jurisdictions in which the amount of taxes paid does not meet the 5% disaggregation threshold.

* The amount of taxes paid does not meet the 5% threshold for disaggregation.

Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities.

31 unchanged sentences

2038-2042 9 —

2042-2044 1 —

Indefinite — —

The Company’s liability for unrecognized tax benefits may increase or decrease in the next 12 months.

A reasonable estimate of the increase or decrease cannot be made at this time.

However, the Company continues to believe that the ultimate resolution of the pending issues will not result in a material change to its consolidated financial statements, although the resolution of income tax matters could impact the Company’s effective tax rate in the future.

A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:

9 unchanged sentences

Lapses of statutes of limitations

( 12 ) — ( 22 )

Balance at December 31, $ 1 $ 1 $ 19

1 unchanged sentence

The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included in other expenses, while penalties are included in income tax expense.

Interest related to unrecognized tax benefits was not significant.

The Company had no penalties for each of the years ended December 31, 2024, 2023 and 2022.

Interest and penalties related to unrecognized tax benefits were not significant.

The Company is subject to examination by the Internal Revenue Service and other tax authorities in jurisdictions in which the Company has significant business operations.

1 unchanged sentence

The Company is no longer subject to federal, state or local income tax examinations for years prior to 2017.

Management believes it has established adequate tax liabilities, and final resolution of any audits for the years 2017 and forward is not expected to have a material impact on the Company’s consolidated financial statements.

Management believes it has established adequate tax liabilities, and final resolution of any examinations for the years 2017 and forward and any pending issues are not expected to have a material impact on the Company’s consolidated financial statements.

Brighthouse Financial, Inc.

15 unchanged sentences

In connection with the Separation, the Company entered into a tax receivables agreement (the “Tax Receivables Agreement”) with MetLife that provides MetLife with the right to receive, as partial consideration for its contribution of assets to BHF, future payments from BHF equal to 86 % of the amount of cash savings, if any, in federal income tax that Brighthouse Financial actually, or is deemed to, realize as a result of the utilization of BHF and its subsidiaries’ net operating losses, capital losses, tax basis and amortization or depreciation deductions in respect of certain tax benefits it may realize as a result of certain transactions involved in the Separation.

In connection with the Tax Receivables Agreement, the Company has a payable to MetLife of $ 328 million at both December 31, 2024 and 2023, reported in other liabilities.

In connection with the Tax Receivables Agreement, the Company has a payable to MetLife of $ 328 million at both December 31, 2025 and 2024 reported in other liabilities, which would be accelerated upon closing of the Merger.

The Company also entered into a tax separation agreement with MetLife (the “Tax Separation Agreement”).

1 unchanged sentence

The Tax Separation Agreement also allocates rights, obligations and responsibilities in connection with certain administrative matters relating to the preparation of tax returns and control of tax audits and other proceedings relating to taxes.

For the years ended December 31, 2024, 2023 and 2022, MetLife paid Brighthouse Financial $ 0 , $ 0 and $ 7 million, respectively, under the Tax Separation Agreement.

For the years ended December 31, 2025, 2024 and 2023, no payments were made by MetLife or Brighthouse Financial under the Tax Separation Agreement.

At December 31, 2025 and 2024, there was a current income tax receivable of $ 17 million and $ 16 million, respectively, related to this agreement.

4 unchanged sentences

Years Ended December 31,

2024 2023 2022

(In millions, except share and per share data)

4 unchanged sentences

Earnings per common share:

Basic $ 4.67 $ ( 18.39 ) $ 51.73

Diluted $ 4.64 $ ( 18.39 ) $ 51.30

For the years ended December 31, 2024 and 2022, 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 years ended December 31, 2024 and 2022.

The dilutive effect of share-based awards is calculated using the treasury stock method, which assumes that the proceeds from the exercise of these instruments are used to repurchase shares of common stock at the average market price during the period.

See Note 12 for further information on share-based compensation plans.

For the year ended December 31, 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 earnings per common share.

For the year ended December 31, 2023, basic loss per common share equaled diluted loss per common share.

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

Dilutive shares and diluted earnings per share are not applicable when a net loss is reported.

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.

22 unchanged sentences

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

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

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

Plaintiff seeks to certify a class of all persons who own or owned life insurance policies issued where the terms of the life insurance policy provide or provided, among other things, a guarantee that the cost of insurance rates would not be increased by more than a specified percentage in any contract year.

Plaintiff also alleges that cost of insurance charges were based on improper factors and should have decreased over time due to improving mortality but did not.

Plaintiff alleges, among other things, causes of action for breach of contract, fraud, suppression and concealment, and violation of the Georgia Racketeer Influenced and Corrupt Organizations Act.

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

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

Plaintiff sought to certify a class of all persons who own or owned life insurance policies issued where the terms of the life insurance policy provide or provided, among other things, a guarantee that the COI rates would not be increased by more than a specified percentage in any contract year.

Plaintiff also alleges that COI charges were based on improper factors and should have decreased over time due to improving mortality.

Plaintiff’s complaint alleges, among other things, causes of action for breach of contract, fraud, suppression and concealment, and violation of the Georgia Racketeer Influenced and Corrupt Organizations Act.

Plaintiff seeks to recover damages, including punitive damages, interest and treble damages, attorneys’ fees, and injunctive and declaratory relief.

3 unchanged sentences

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

On September 5, 2025, the court granted in part plaintiff’s motion for class certification, certifying a class of all persons, who as of May 8, 2015, owned a UL policy issued in Georgia by Brighthouse Life Insurance Company or its predecessors-in-interest on Forms ULXP86 and ULXP88, and who were subject to at least one monthly deduction.

On October 31, 2025, the court issued an amended order changing the date as to class certification for breach of contract claims to March 14, 2014 and for Georgia Racketeer Influenced and Corrupt Organizations Act claims to March 14, 2015.

The Company intends to vigorously defend this matter.

5 unchanged sentences

District Court, Southern District of New York, filed April 6, 2021).

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

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

Plaintiff seeks to certify a class of similarly situated owners of universal life insurance policies issued or administered by defendants and alleges that cost of insurance charges were based on improper factors and should have decreased over time due to improving mortality but did not.

Plaintiff alleges, among other things, causes of action for breach of contract, breach of the covenant of good faith and fair dealing, and unjust enrichment.

Plaintiff seeks to recover compensatory damages, attorney’s fees, interest, and equitable relief including a constructive trust.

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

Plaintiff is the owner of a UL insurance policy issued by Travelers Insurance Company, a predecessor to Brighthouse Life Insurance Company.

Plaintiff sought to certify a class of similarly situated owners of UL insurance policies issued or administered by defendants and alleges that COI charges were based on improper factors and should have decreased over time due to improving mortality.

Plaintiff’s complaint alleges, among other things, causes of action for breach of contract, breach of the covenant of good faith and fair dealing, and unjust enrichment.

Plaintiff seeks to recover compensatory damages, attorneys’ fees, interest, and equitable relief including a constructive trust.

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

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

On September 25, 2025, the court granted in part plaintiff’s motion for class certification, certifying as to plaintiff’s breach of contract claim based on the alleged failure to decrease COI rates, a nationwide class of owners of UL policies with the product codes ULX or ULXP that contains the language:

“We will base these rates only on our future outlook for mortality and expenses.” On October 9, 2025, plaintiff filed a petition for permission to appeal to the United States Court of Appeals for the Second Circuit.

On February 11, 2026, the United States Court of Appeals for the Second Circuit denied plaintiff’s petition.

The Company intends to vigorously defend this matter.

15 unchanged sentences

However, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Contingencies, Commitments and Guarantees (continued)

Other Loss Contingencies

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

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Contingencies, Commitments and Guarantees (continued)

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

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

As of December 31, 2024, the Company estimates the range of reasonably possible losses in excess of the amounts accrued for certain other loss contingencies to be from zero up to approximately $ 100 million relating to certain tax matters, as described above.

As of December 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 and reinsurance 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.

13 unchanged sentences

Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

Contingencies, Commitments and Guarantees (continued)

In addition, the Company indemnifies its directors and officers as provided in its charters and bylaws.

1 unchanged sentence

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 December 31, 2024 and had recorded liabilities for indemnities, guarantees and commitments of $ 1 million at December 31, 2023.

Brighthouse Financial, Inc.

Notes to the Consolidated Financial Statements (continued)

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

Subsequent Event

1 unchanged sentence

On February 17, 2026, BHF declared a dividend of $ 412.50 per share on its Series A Preferred Stock, $ 421.88 per share on its Series B Preferred Stock, $ 335.94 per share on its Series C Preferred Stock and $ 289.06 per share on its Series D Preferred Stock for a total of $ 26 million, which will be paid on March 25, 2026 to stockholders of record as of March 10, 2026.

Capital Transaction

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

Brighthouse Financial, Inc.

3 unchanged sentences

(In millions)

Types of Investments Cost or

Amortized Cost (1) Estimated Fair Value Amount at

Which Shown on

Balance Sheet

Types of Investments

Cost or Amortized Cost (1)

Estimated Fair Value

Amount at Which Shown on Balance Sheet

Fixed maturity securities:

4 unchanged sentences

All other corporate bonds

Total bonds 65,973 59,734 59,734

Mortgage-backed and asset-backed securities

1 unchanged sentence

Total fixed maturity securities

Trading securities

Equity securities:

2 unchanged sentences

Industrial, miscellaneous and all other

Banks, trust and insurance companies — — —

Public utilities

1 unchanged sentence

Mortgage loans

Policy loans 2,024 2,024

Limited partnerships and LLCs

3 unchanged sentences

_______________

(1) Cost or amortized cost for fixed maturity securities represents original cost reduced by impairments that are charged to earnings and adjusted for amortization of premiums or accretion of discounts;

(1) Cost or amortized cost for fixed maturity and trading securities represents original cost reduced by impairments that are charged to earnings and adjusted for amortization of premiums or accretion of discounts;

for mortgage loans, cost represents original cost reduced by repayments and valuation allowances and adjusted for amortization of premiums or accretion of discounts;

11 unchanged sentences

Short-term investments, principally at estimated fair value 521

Other invested assets, principally at estimated fair value 5 —

Investment in subsidiary 9,678

Other invested assets, principally at estimated fair value 2

Total investments 10,349

20 unchanged sentences

66,910,750 and 64,851,277 shares, respectively

( 2,572 ) ( 2,309 )

Accumulated other comprehensive income (loss) ( 3,729 )

7 unchanged sentences

(In millions)

2024 2023 2022

Condensed Statements of Operations

1 unchanged sentence

Other revenues

Net investment gains (losses) — — ( 2 )

Net derivative gains (losses)

16 unchanged sentences

(In millions)

2024 2023 2022

Condensed Statements of Cash Flows

3 unchanged sentences

Distributions from subsidiary

Other, net 50 ( 24 ) 2

Net cash provided by (used in) operating activities

4 unchanged sentences

Cash paid in connection with freestanding derivatives

( 6 ) ( 9 ) ( 6 )

Net change in short-term investments

7 unchanged sentences

Financing element on certain derivative instruments and other derivative related transactions, net

Other, net ( 12 ) ( 14 ) ( 14 )

Net cash provided by (used in) financing activities

4 unchanged sentences

Net cash paid (received) for:

Interest $ 191 $ 176 $ 155

Income tax $ ( 79 ) $ ( 6 ) $ ( 24 )

$ ( 42 ) $ ( 79 ) $ ( 6 )

See accompanying notes to the condensed financial information.

12 unchanged sentences

Investment in Subsidiary

During the year ended December 31, 2024, BHF received non-cash distributions of $ 376 million from Brighthouse Holdings, LLC (“BH Holdings”) and did not make any capital contributions to BH Holdings.

The non-cash distributions received related to reductions of short-term intercompany loans of $ 400 million from Brighthouse Services, LLC to BH Holdings (which was then contributed to BHF).

During the year ended December 31, 2023, BHF received cash distributions of $ 350 million and non-cash distributions of $ 100 million from BH Holdings and did not make any capital contributions to BH Holdings.

Cash distributions received during the year ended December 31, 2023 primarily related to $ 266 million of ordinary cash dividends paid by Brighthouse Life Insurance Company to BH Holdings.

The non-cash distributions received related to reductions of short-term intercompany loans of $ 50 million from Brighthouse Services, LLC to BH Holdings (which was then contributed to BHF) and an additional $ 50 million from BH Holdings to BHF.

During the year ended December 31, 2022, BHF received non-cash distributions of $ 350 million from BH Holdings and did not make any capital contributions to BH Holdings.

The non-cash distributions received related to reductions of short-term intercompany loans of $ 250 million from Brighthouse Services, LLC to BH Holdings (which was then contributed to BHF) and an additional $ 100 million from BH Holdings to BHF.

During the year ended December 31, 2025, (i) BHF received non-cash distributions of $ 250 million from Brighthouse Holdings, LLC (“BH Holdings”) and did not make any capital contributions to BH Holdings;

and (ii) BH Holdings received non-cash distributions of $ 100 million from Brighthouse Services, LLC, each of which related to reductions of short-term intercompany loans.

During the year ended December 31, 2024, (i) BHF received non-cash distributions of $ 376 million from BH Holdings and did not make any capital contributions to BH Holdings;

and (ii) BH Holdings received non-cash distributions of $ 400 million from Brighthouse Services, LLC, each of which related to reductions of short-term intercompany loans.

During the year ended December 31, 2023, BHF received cash distributions of $ 350 million, primarily related to $ 266 million of ordinary cash dividends paid by Brighthouse Life Insurance Company to BH Holdings, and did not make any capital contributions to BH Holdings.

In addition, (i) BHF received non-cash distributions of $ 100 million from BH Holdings;

and (ii) BH Holdings received non-cash distributions of $ 50 million from Brighthouse Services, LLC, each of which related to reductions of short-term intercompany loans.

Long-term and Short-term Debt

Long-term and short-term debt outstanding was as follows at:

Stated Interest Rate Maturity 2024 2023

Stated Interest Rate

(In millions)

3 unchanged sentences

Senior notes — unaffiliated

3.850 % 2051 397 397

Junior subordinated debentures — unaffiliated

7 unchanged sentences

(Parent Company Only)

The aggregate maturities of long-term and short-term debt at December 31, 2024 were $ 582 million in 2025, $ 0 in 2026, $ 757 million in 2027, $ 0 in each of 2028 and 2029, and $ 2.4 billion thereafter.

The aggregate maturities of long-term and short-term debt at December 31, 2025 were $ 445 million in 2026, $ 757 million in 2027, $ 0 in each of 2028 and 2029, $ 615 million in 2030, and $ 1.8 billion thereafter.

Interest expense related to long-term and short-term debt of $ 171 million, $ 192 million and $ 178 million for the years ended December 31, 2025, 2024 and 2023, respectively, is included in other expenses.

7 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 years ended December 31, 2024, 2023 and 2022, BHF borrowed $ 570 million, $ 753 million and $ 1.0 billion, respectively, from certain of its non-insurance subsidiaries and repaid $ 339 million, $ 439 million and $ 811 million of such borrowings during the years ended December 31, 2024, 2023 and 2022, respectively.

During the years ended December 31, 2025, 2024 and 2023, BHF borrowed $ 724 million, $ 570 million and $ 753 million, respectively, from certain of its non-insurance subsidiaries and repaid $ 610 million, $ 339 million and $ 439 million of such borrowings during the years ended December 31, 2025, 2024 and 2023, respectively.

The weighted average interest rate on short-term intercompany loans outstanding at December 31, 2025, 2024 and 2023 was 3.04 %, 3.73 % and 4.73 %, respectively.

7 unchanged sentences

(In millions)

VOBA Future Policy Benefits and Other Policy-Related Balances Policyholder Account Balances Unearned Premiums (1)(2) Unearned Revenue (1)

Annuities $ 4,027 $ 4,040 $ 67,777 $ — $ 60

Life 680 6,648 2,859 9 357

Run-off 3 18,672 6,376 — 715

VOBA Future Policy Benefits and Other Policy-Related Balances

Policyholder Account Balances

Unearned Premiums (1) (2)

Unearned Revenue (1)

Corporate & Other —

Total $ 4,710 $ 35,353 $ 87,989 $ 14 $ 1,132

Annuities $ 4,111 $ 4,024 $ 60,929 $ — $ 67

Life 758 6,549 2,856 11 356

Run-off 3 19,421 6,694 — 612

Corporate & Other —

Total $ 4,872 $ 36,405 $ 81,068 $ 16 $ 1,035

_______________

5 unchanged sentences

(In millions)

Segment Premiums and

Universal Life

6 unchanged sentences

DAC and VOBA Other

Annuities $ 1,900 $ 2,850 $ 1,830 $ 505 $ 1,399

Life 654 464 815 94 188

Run-off 332 1,230 1,335 — 166

Corporate & Other —

Total $ 2,886 $ 5,222 $ 4,430 $ 599 $ 1,946

Annuities $ 1,875 $ 2,546 $ 1,534 $ 516 $ 1,391

Life 775 431 991 104 203

Run-off 473 1,115 1,588 — 167

Corporate & Other —

Total $ 3,123 $ 4,664 $ 4,501 $ 620 $ 1,977

Annuities $ 1,831 $ 2,240 $ 1,277 $ 515 $ 1,417

Life 756 438 875 114 130

Run-off 510 1,146 1,216 — 293

Corporate & Other —

Total $ 3,097 $ 4,138 $ 3,531 $ 629 $ 2,085

_______________

4 unchanged sentences

(Dollars in millions)

Gross Amount Ceded Assumed Net Amount % Amount Assumed to Net

% Amount Assumed to Net

Life insurance in-force (1)

$ 470,679 $ 125,696 $ 5,641 $ 350,624 1.6 %

Insurance premium

Life insurance (2)

$ 1,206 $ 450 $ 12 $ 768 1.6 %

Accident & health insurance

1 unchanged sentence

Life insurance in-force (1)

$ 489,313 $ 134,682 $ 6,127 $ 360,758 1.7 %

Insurance premium

Life insurance (2)

$ 1,294 $ 489 $ 14 $ 819 1.7 %

Accident & health insurance

1 unchanged sentence

Life insurance in-force (1)

$ 502,679 $ 144,647 $ 6,578 $ 364,610 1.8 %

Insurance premium

Life insurance (2)

$ 1,157 $ 505 $ 6 $ 658 0.9 %

Accident & health insurance

5 unchanged sentences

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-K

Item 8. Financial Statements and Supplementary Data