Brighthouse Financial, Inc. 10-K

Item 8. Financial Statements and Supplementary Data Index to Consolidated Financial Statements, Notes and Schedules Page Report of Independent Registered Public Accounting Firm 111 Financial Statements at December 31, 2025 and 2024 and for the Years Ended December 31, 2025, 2024 and 2023: Consolidated Balance Sheets 114 Consolidated Statements of Operations 115 Consolidated Statements of Comprehensive Income (Loss) 116 Consolidated Statements of Equity 117 Consolidated Statements of Cash Flows 118 Notes to the Consolidated Financial Statements Note 1 — Business, Basis of Presentation and Summary of Significant Accounting Policies 120 Note 2 — Segment Information 129 Note 3 — Insurance Liabilities 135 Note 4 — Market Risk Benefits 141 Note 5 — Separate Accounts 142 Note 6 — Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles 144 Note 7 — Reinsurance 145 Note 8 — Investments 148 Note 9 — Derivatives 160 Note 10 — Fair Value 166 Note 11 — Long-term Debt 176 Note 12 — Equity 177 Note 13 — Other Revenues and Other Expenses 187 Note 14 — Employee Benefit Plans 188 Note 15 — Income Tax 188 Note 16 — Earnings Per Common Share 193 Note 17 — Contingencies, Commitments and Guarantees 193 Note 18 — Subsequent Event 197 Financial Statement Schedules at December 31, 2025 and 2024 and for the Years Ended December 31, 2025, 2024 and 2023: Schedule I — Consolidated Summary of Investments — Other Than Investments in Related Parties 198 Schedule II — Condensed Financial Information (Parent Company Only) 199 Schedule III — Consolidated Supplementary Insurance Information 204 Schedule IV — Consolidated Reinsurance 206 110 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the stockholders and the Board of Directors of Brighthouse Financial, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Brighthouse Financial, Inc. and subsidiaries (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), equity, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and the schedules listed in the Index to Consolidated Financial Statements, Notes and Schedules (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 24, 2026, expressed an unqualified opinion on the Company’s internal control over financial reporting. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Certain Assumptions Used in the Valuation of Liability for Future Policy Benefits – Refer to Notes 1 and 3 to the financial statements Critical Audit Matter Description The Company has obligations under insurance contracts to pay benefits over an extended period of time. The Company establishes a liability for future policy benefits (“LFPB”) for nonparticipating traditional and limited-payment contracts and the additional insurance liabilities for universal life-type contracts with secondary guarantees. 111 Table of Contents Management regularly reviews its cash flow assumptions supporting the estimates of these actuarial liabilities and, if such assumptions change significantly, the associated liability is adjusted. The measurement of LFPBs can be significantly impacted by changes in economic assumptions related to market interest rates and the general account rate of return and changes in assumptions for policyholder behavior including premium persistency, mortality, lapses and withdrawals. Given the future policy benefit obligation for certain contracts is sensitive to changes in these economic and policyholder behavior assumptions and the significant uncertainty inherent in estimating these actuarial liabilities, we identified management’s evaluation of these assumptions in the valuation of certain LFPBs as a critical audit matter. This required a high degree of auditor judgment and an increased extent of effort, including the involvement of our actuarial specialists. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to these assumptions in the valuation of certain LFPBs included the following, among others: • We tested the effectiveness of management’s controls over the assumption review process, including those over the selection of the significant economic and policyholder behavior assumptions. • With the assistance of our actuarial specialists, we evaluated the appropriateness of the significant assumptions used, developed an independent estimate of the LFPBs for a sample of policies and cohorts, and compared our estimates to management’s estimates. • We tested the completeness and accuracy of the underlying data that served as the basis for the actuarial analysis to test that the inputs to the actuarial estimate were reasonable. • We evaluated the methods and significant assumptions used by management to identify potential bias. • We evaluated whether the significant assumptions used were consistent with evidence obtained in other areas of the audit. Certain Assumptions Used in the Valuation of Market Risk Benefits – Refer to Notes 1, 4, and 10 to the financial statements Critical Audit Matter Description Market risk benefits are measured at fair value and separately presented on the consolidated balance sheet. The Company estimates market risk benefit assets and liabilities using significant judgment including discount rate assumptions, nonperformance risk, and actuarially determined assumptions including policyholder behavior, mortality and risk margins. Given the sensitivity of certain market risk benefits to changes in these assumptions and the significant uncertainty inherent in estimating the market risk benefits, we identified management’s evaluation of these assumptions in the valuation of certain market risk benefits as a critical audit matter. This required a high degree of auditor judgment and an increased extent of effort, including the involvement of our actuarial and fair value specialists. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to these assumptions in the valuation of certain market risk benefits included the following, among others: • We tested the effectiveness of management’s controls over the assumption review process, including those over the selection of the significant assumptions related to policyholder behavior, mortality and risk margins, as well as changes in nonperformance risk. • With the assistance of our actuarial specialists, we evaluated the appropriateness of the significant assumptions used, developed an independent estimate of the market risk benefits for a sample of policies, and compared our estimates to management’s estimates. • We tested the completeness and accuracy of the underlying data that served as the basis for the actuarial analysis to test that the inputs to the actuarial estimate were reasonable. 112 Table of Contents • We evaluated the reasonableness of the Company’s assumptions by comparing those selected by management to those independently derived by our fair value and actuarial specialists, drawing upon standard actuarial and industry practice. • We evaluated the methods and assumptions used by management to identify potential bias in the determination of the market risk benefits. • We evaluated whether the assumptions used were consistent with evidence obtained in other areas of the audit. /s/ DELOITTE & TOUCHE LLP Charlotte, North Carolina February 24, 2026 We have served as the Company’s auditor since 2016. 113 Table of Contents Brighthouse Financial, Inc. Consolidated Balance Sheets December 31, 2025 and 2024 (In millions, except share and per share data) 2025 2024 Assets Investments: Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $ 87,046 and $ 87,603 , respectively; allowance for credit losses of $ 64 and $ 81 , respectively) $ 82,014 $ 80,055 Trading securities, at estimated fair value 506 — Equity securities, at estimated fair value 79 77 Mortgage loans (net of allowance for credit losses of $ 200 and $ 178 , respectively) 22,755 23,286 Policy loans 1,450 2,024 Limited partnerships and limited liability companies 4,696 4,827 Short-term investments, principally at estimated fair value 1,197 1,868 Other invested assets, principally at estimated fair value (net of allowance for credit losses of $ 0 and $ 0 , respectively) 7,932 5,250 Total investments 120,629 117,387 Cash and cash equivalents 5,387 5,045 Accrued investment income 1,260 1,277 Premiums, reinsurance and other receivables (net of allowance for credit losses of $ 3 and $ 3 , respectively) 21,579 21,126 Deferred policy acquisition costs and value of business acquired 4,567 4,710 Current income tax recoverable 16 19 Deferred income tax asset 1,442 1,875 Market risk benefit assets 1,060 1,092 Other assets 332 370 Separate account assets 85,528 85,636 Total assets $ 241,800 $ 238,537 Liabilities and Equity Liabilities Future policy benefits $ 32,025 $ 31,475 Policyholder account balances 87,952 87,989 Market risk benefit liabilities 8,063 8,329 Other policy-related balances 3,893 3,878 Payables for collateral under securities loaned and other transactions 4,705 3,891 Long-term debt 3,155 3,155 Other liabilities 9,646 9,160 Separate account liabilities 85,528 85,636 Total liabilities 234,967 233,513 Contingencies, Commitments and Guarantees (Note 17) Equity Brighthouse Financial, Inc.’s stockholders’ equity: Preferred stock, par value $ 0.01 per share; $ 1,753 aggregate liquidation preference — — Common stock, par value $ 0.01 per share; 1,000,000,000 shares authorized; 124,081,967 and 123,480,326 shares issued, respectively; 57,171,217 and 58,629,049 shares outstanding, respectively 1 1 Additional paid-in capital 13,870 13,927 Retained earnings (deficit) ( 686 ) ( 1,119 ) Treasury stock, at cost; 66,910,750 and 64,851,277 shares, respectively ( 2,688 ) ( 2,572 ) Accumulated other comprehensive income (loss) ( 3,729 ) ( 5,278 ) Total Brighthouse Financial, Inc.’s stockholders’ equity 6,768 4,959 Noncontrolling interests 65 65 Total equity 6,833 5,024 Total liabilities and equity $ 241,800 $ 238,537 See accompanying notes to the consolidated financial statements. 114 Table of Contents Brighthouse Financial, Inc. Consolidated Statements of Operations For the Years Ended December 31, 2025, 2024 and 2023 (In millions, except per share data) 2025 2024 2023 Revenues Premiums $ 695 $ 770 $ 828 Universal life and investment-type product policy fees 2,161 2,116 2,295 Net investment income 5,244 5,222 4,664 Other revenues 555 579 483 Net investment gains (losses) ( 97 ) ( 295 ) ( 246 ) Net derivative gains (losses) ( 1,792 ) ( 3,668 ) ( 3,907 ) Total revenues 6,766 4,724 4,117 Expenses Policyholder benefits and claims (including liability remeasurement gains (losses) of ($ 273 ), ($ 978 ), ($ 234 ), respectively) 1,805 2,294 2,676 Interest credited to policyholder account balances 2,188 2,136 1,825 Amortization of deferred policy acquisition costs and value of business acquired 609 599 620 Change in market risk benefits ( 268 ) ( 2,673 ) ( 1,507 ) Other expenses 1,958 1,946 1,977 Total expenses 6,292 4,302 5,591 Income (loss) before provision for income tax 474 422 ( 1,474 ) Provision for income tax expense (benefit) 36 29 ( 367 ) Net income (loss) 438 393 ( 1,107 ) Less: Net income (loss) attributable to noncontrolling interests 5 5 5 Net income (loss) attributable to Brighthouse Financial, Inc. 433 388 ( 1,112 ) Less: Preferred stock dividends 102 102 102 Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ 331 $ 286 $ ( 1,214 ) Earnings per common share Basic $ 5.75 $ 4.67 $ ( 18.39 ) Diluted $ 5.71 $ 4.64 $ ( 18.39 ) See accompanying notes to the consolidated financial statements. 115 Table of Contents Brighthouse Financial, Inc. Consolidated Statements of Comprehensive Income (Loss) For the Years Ended December 31, 2025, 2024 and 2023 (In millions) 2025 2024 2023 Net income (loss) $ 438 $ 393 $ ( 1,107 ) Other comprehensive income (loss): Unrealized investment gains (losses), net of related offsets 2,050 ( 1,037 ) 2,375 Unrealized gains (losses) on derivatives ( 245 ) 118 ( 287 ) Changes in instrument-specific credit risk on market risk benefits 440 352 ( 636 ) Changes in discount rates on the liability for future policy benefits ( 331 ) 543 ( 380 ) Foreign currency translation adjustments 43 ( 19 ) 18 Defined benefit plans adjustment 3 3 ( 2 ) Other comprehensive income (loss), before income tax 1,960 ( 40 ) 1,088 Income tax (expense) benefit related to items of other comprehensive income (loss) ( 411 ) 8 ( 228 ) Other comprehensive income (loss), net of income tax 1,549 ( 32 ) 860 Comprehensive income (loss) 1,987 361 ( 247 ) Less: Comprehensive income (loss) attributable to noncontrolling interests, net of income tax 5 5 5 Comprehensive income (loss) attributable to Brighthouse Financial, Inc. $ 1,982 $ 356 $ ( 252 ) See accompanying notes to the consolidated financial statements. 116 Table of Contents Brighthouse Financial, Inc. Consolidated Statements of Equity For the Years Ended December 31, 2025, 2024 and 2023 (In millions) Preferred Stock Common Stock Additional Paid-in Capital Retained Earnings (Deficit) Treasury Stock at Cost Accumulated Other Comprehensive Income (Loss) Brighthouse Financial, Inc.’s Stockholders’ Equity Noncontrolling Interests Total Equity Balance at December 31, 2022 $ — $ 1 $ 14,075 $ ( 395 ) $ ( 2,042 ) $ ( 6,106 ) $ 5,533 $ 65 $ 5,598 Treasury stock acquired in connection with share repurchases ( 250 ) ( 250 ) ( 250 ) Share-based compensation — 31 ( 17 ) 14 14 Dividends on preferred stock ( 102 ) ( 102 ) ( 102 ) Change in noncontrolling interests — ( 5 ) ( 5 ) Net income (loss) ( 1,112 ) ( 1,112 ) 5 ( 1,107 ) Other comprehensive income (loss), net of income tax 860 860 860 Balance at December 31, 2023 — 1 14,004 ( 1,507 ) ( 2,309 ) ( 5,246 ) 4,943 65 5,008 Treasury stock acquired in connection with share repurchases ( 250 ) ( 250 ) ( 250 ) Share-based compensation — 25 ( 13 ) 12 12 Dividends on preferred stock ( 102 ) ( 102 ) ( 102 ) Change in noncontrolling interests — ( 5 ) ( 5 ) Net income (loss) 388 388 5 393 Other comprehensive income (loss), net of income tax ( 32 ) ( 32 ) ( 32 ) Balance at December 31, 2024 — 1 13,927 ( 1,119 ) ( 2,572 ) ( 5,278 ) 4,959 65 5,024 Treasury stock acquired in connection with share repurchases ( 102 ) ( 102 ) ( 102 ) Share-based compensation — 45 ( 14 ) 31 31 Dividends on preferred stock ( 102 ) ( 102 ) ( 102 ) Change in noncontrolling interests — ( 5 ) ( 5 ) Net income (loss) 433 433 5 438 Other comprehensive income (loss), net of income tax 1,549 1,549 1,549 Balance at December 31, 2025 $ — $ 1 $ 13,870 $ ( 686 ) $ ( 2,688 ) $ ( 3,729 ) $ 6,768 $ 65 $ 6,833 See accompanying notes to the consolidated financial statements. 117 Table of Conte nts Brighthouse Financial, Inc. Consolidated Statements of Cash Flows For the Years Ended December 31, 2025, 2024 and 2023 (In millions) 2025 2024 2023 Cash flows from operating activities Net income (loss) $ 438 $ 393 $ ( 1,107 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Amortization of premiums and accretion of discounts associated with investments, net ( 320 ) ( 330 ) ( 282 ) (Gains) losses on investments, net 51 264 232 (Gains) losses on derivatives, net ( 1,357 ) 1,436 2,620 (Income) loss from equity method investments, net of dividends and distributions ( 24 ) 41 83 Interest credited to policyholder account balances 2,188 2,136 1,825 Universal life and investment-type product policy fees ( 2,161 ) ( 2,116 ) ( 2,295 ) Change in market risk benefits, net 209 ( 2,073 ) ( 875 ) Change in accrued investment income 142 ( 113 ) ( 215 ) Change in premiums, reinsurance and other receivables ( 400 ) ( 1,451 ) ( 1,280 ) Change in deferred policy acquisition costs and value of business acquired, net 143 162 211 Change in income tax 33 30 ( 371 ) Change in other assets 1,143 1,180 1,132 Change in future policy benefits and other policy-related balances ( 295 ) ( 281 ) 51 Change in other liabilities 420 402 95 Other, net 49 30 39 Net cash provided by (used in) operating activities 259 ( 290 ) ( 137 ) Cash flows from investing activities Sales, maturities and repayments of: Fixed maturity securities 12,722 11,721 6,028 Trading securities 44 — — Equity securities 39 46 33 Mortgage loans 2,544 1,523 1,232 Limited partnerships and limited liability companies 570 337 205 Purchases of: Fixed maturity securities ( 12,355 ) ( 11,998 ) ( 8,866 ) Trading securities ( 199 ) — — Equity securities ( 21 ) ( 7 ) ( 14 ) Mortgage loans ( 2,163 ) ( 2,377 ) ( 813 ) Limited partnerships and limited liability companies ( 278 ) ( 299 ) ( 453 ) Cash received in connection with freestanding derivatives 16,810 12,468 5,079 Cash paid in connection with freestanding derivatives ( 18,263 ) ( 11,865 ) ( 5,428 ) Net change in policy loans 574 ( 692 ) ( 49 ) Net change in short-term investments 712 ( 675 ) ( 38 ) Net change in other invested assets 15 ( 372 ) ( 112 ) Other, net — ( 4 ) — Net cash provided by (used in) investing activities $ 751 $ ( 2,194 ) $ ( 3,196 ) See accompanying notes to the consolidated financial statements. 118 Table of Conte nts Brighthouse Financial, Inc. Consolidated Statements of Cash Flows (continued) For the Years Ended December 31, 2025, 2024 and 2023 (In millions) 2025 2024 2023 Cash flows from financing activities Policyholder account balances: Deposits $ 20,187 $ 30,410 $ 21,989 Withdrawals ( 21,003 ) ( 26,378 ) ( 17,747 ) Net change in payables for collateral under securities loaned and other transactions 814 221 ( 890 ) Long-term debt repaid ( 2 ) ( 2 ) ( 2 ) Dividends on preferred stock ( 102 ) ( 102 ) ( 102 ) Treasury stock acquired in connection with share repurchases ( 102 ) ( 250 ) ( 250 ) Financing element on certain derivative instruments and other derivative related transactions, net ( 443 ) ( 204 ) 90 Other, net ( 17 ) ( 17 ) ( 19 ) Net cash provided by (used in) financing activities ( 668 ) 3,678 3,069 Change in cash, cash equivalents and restricted cash 342 1,194 ( 264 ) Cash, cash equivalents and restricted cash, beginning of year 5,045 3,851 4,115 Cash, cash equivalents and restricted cash, end of year $ 5,387 $ 5,045 $ 3,851 Supplemental disclosures of cash flow information Net cash paid (received) for: Interest $ 151 $ 151 $ 151 Income tax $ 12 $ 13 $ 7 Non-cash transactions: Transfer of mortgage loans to affiliates $ 43 $ — $ — Transfer of limited partnerships and limited liability companies from affiliates $ 43 $ — $ — See accompanying notes to the consolidated financial statements. 119 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements 1. Business, Basis of Presentation and Summary of Significant Accounting Policies Business Brighthouse Financial, Inc. (“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. The Company is organized into the following reportable segments: Annuities; Life; Run-off; 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 The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. Consolidation The accompanying consolidated financial statements include the accounts of Brighthouse Financial, as well as partnerships and limited liability companies (“LLC”) that the Company controls. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting for investments in limited partnerships and LLCs when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. When the Company has virtually no influence over the investee’s operations, the investment is carried at fair value. Summary of Significant Accounting Policies Insurance Contract Obligations The Company has obligations under insurance contracts to pay benefits over an extended period of time. The Company establishes liabilities for future obligations under long-duration insurance contracts based on the accounting model appropriate for each type of contract or contract feature. Liabilities for insurance contract benefits are generally accrued over time as revenue is recognized, or established based on the balance that accrues to the contract holder. In addition, certain insurance contracts may contain features that are required to be measured at fair value separately from the base contracts, either as a market risk benefit (“MRB”) or embedded derivative. 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. 120 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Liability for Future Policy Benefits The Company establishes a liability for future policy benefits (“LFPB”) for non-participating term and whole life insurance and income annuities. LFPBs are accrued over time as revenue is recognized based on a net premium ratio. The net premium ratio is the portion of gross premiums required to provide for all future benefits. LFPBs are established using the Company’s current assumptions of future cash flows, discounted at a rate that approximates a single A corporate bond curve. The Company generally aggregates insurance contracts into groupings by issue year, product and segment for determining the net premium ratio and related LFPBs. The Company reviews cash flow assumptions regularly, and if they change significantly, LFPBs are adjusted by determining a revised net premium ratio. The revised net premium ratio is calculated as of contract inception using both actual historical experience and updated future cash flow assumptions. The recalculated net premium ratio is applied to derive a remeasurement gain or loss recognized in the current period net income. For insurance policies in-force as of December 31, 2020, January 1, 2021 is considered the contract inception date. The net premium ratio is also updated quarterly for the difference between actual and expected experience. The net premium ratio is not updated for changes in discount rate assumptions, as changes in the discount rate are updated quarterly and the impacts are reflected in other comprehensive income (loss) (“OCI”). The discount rate assumption is determined by developing a yield curve based on market observable yields for upper-medium grade fixed income instruments derived from an external index. The yield curve is applied to the expected future cash flows used in the measurement of LFPBs based on the duration characteristics of those liabilities. The most significant cash flow assumptions used in the establishment of LFPBs are mortality, policy lapses and market interest rates. See Note 3 for more information on the effect of changes in assumptions on the measurement of LFPBs. The Company also establishes an LFPB for participating term and whole life insurance using a net premium ratio and the Company’s current assumptions of future cash flows. Assumptions are determined at issuance of the policy and are not updated unless a premium deficiency exists. A premium deficiency exists when the LFPB plus the present value of expected future gross premiums are less than expected future benefits and expenses (based on current assumptions). When a premium deficiency exists, the Company will reduce any deferred acquisition costs and may also establish an additional liability to eliminate the deficiency. See Note 3 for more information on assumptions used in establishing LFPBs related to participating term and whole life insurance. Policyholder Account Balances The Company establishes a policyholder account balance liability for customer deposits on universal life insurance, universal life insurance with secondary guarantees (“ULSG”) and deferred annuity contracts. The policyholder account balance liability is equal to the sum of deposits, plus interest credited, less charges and withdrawals, excluding the impact of any applicable charge that may be incurred upon surrender. The Company also holds additional liabilities for certain product features including secondary guarantees on universal life insurance contracts and the crediting rates associated with index-linked annuities. Additional Liabilities for ULSG The Company establishes a liability in addition to the account balance for ULSG. These liabilities are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the contract period based on total expected assessments. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. The Company also maintains a liability for profits followed by losses on ULSG determined by projecting future earnings and establishing a liability to offset losses that are expected to occur in later years. Both ULSG liabilities are adjusted for the effects of unrealized investment gains and losses. The Company reviews cash flow assumptions regularly, and, if they change significantly, the liability for secondary guarantees is adjusted by a cumulative charge or credit to net income. 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. 121 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 1. 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 MRBs are contracts or contract features that provide protection to the policyholder from capital markets risks by transferring such risks to the Company. MRBs are required to be separated from the deferred annuity host contract and measured at fair value. The Company establishes MRB assets and liabilities for guaranteed minimum benefits on variable annuity contracts including guaranteed minimum death benefits, guaranteed minimum income benefits (“GMIB”), guaranteed minimum accumulation benefits (“GMAB”) and guaranteed minimum withdrawal benefits (“GMWB”). MRB assets are also established for reinsured benefits related to these guarantees. Certain index-linked annuity products may also have guaranteed minimum benefits classified as MRBs. 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, 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. Embedded Derivatives on Index-Linked Annuities The Company issues, and assumes through reinsurance, index-linked annuities which allow the policyholder to participate in returns from certain specified equity indices. The crediting rates associated with these features are classified as embedded derivatives and measured at estimated fair value, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets. Embedded derivative liabilities are required to be separated from the deferred annuity host contract and measured at fair value. The estimated fair value is determined using a combination of an option pricing model and an option-budget approach. Under this approach, the Company estimates the cost of funding the crediting rate using option pricing and establishes that cost on the balance sheet as a reduction to the initial deposit amount. The estimate of fair value includes an adjustment for nonperformance risk, as well as a risk margin. Actuarial assumptions are reviewed at least annually, and if they change significantly, the estimated fair value is adjusted through net income. Capital market inputs used in the measurement of index-linked crediting rate embedded derivatives are updated quarterly through net income. The reduction to the initial deposit is accreted back up to the initial deposit over the estimated life of the contract. Embedded derivatives related to index-linked annuities are presented within policyholder account balances while changes in the estimated fair value are reported in net derivative gains (losses). For more information on the determination of estimated fair value of embedded derivatives, see Note 10. Recognition of Revenues and Deposits on Insurance Contracts Premiums related to traditional long-duration contracts are recognized as revenues when due from policyholders. When premiums for income annuities are due over a significantly shorter period than the period over which policyholder benefits are incurred, the Company establishes a deferred profit liability (“DPL”) for the excess of the gross premium over the net premium. DPLs are amortized into net income in proportion to the amount of expected future benefit payments. Assumptions used in the measurement of the DPL are updated at the same time as the related LFPBs, with the updated estimates used to recalculate the DPL as of contract inception. The remeasurement gain or loss from updating DPLs is recognized in current period net income along with the related change in LFPBs. 122 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 1. 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. 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. Premiums and policy fees are presented net of reinsurance. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are directly related to the successful acquisition or renewal of insurance contracts are capitalized as deferred policy acquisition costs (“DAC”). These costs mainly consist of commissions and include the portion of employees’ compensation and benefits related to time spent selling, underwriting or processing the issuance of new insurance contracts. All other acquisition-related costs are expensed as incurred. Value of business acquired (“VOBA”) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity and investment-type contracts in-force as of the acquisition date. The Company amortizes DAC and VOBA in a manner that approximates a straight-line basis over the expected life of the related contracts. For life insurance contracts, amortization is based on projections of amounts of insurance in-force, while projections of policy counts are used for deferred annuity contracts and expected future benefits payments for income annuities. These assumptions are reviewed at least annually, and if they change significantly, updates are recognized through changes to future amortization. VOBA balances are tested annually to determine if the balance is deemed unrecoverable from expected future profits. All changes in DAC and VOBA balances are recorded to net income. Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of an existing contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If a modification is considered to have substantially changed the contract, the associated DAC or VOBA is written off immediately through net income and any new acquisition costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. The Company also has intangible assets representing deferred sales inducements (“DSI”), which are included in other assets, and unearned revenue liabilities, which are included in other policy-related balances. The Company defers sales inducements and unearned revenue and amortizes the balances using the same methodology and assumptions used to amortize DAC and VOBA. Reinsurance The Company enters into reinsurance arrangements pursuant to which it cedes certain insurance risks to unaffiliated reinsurers. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The accounting for reinsurance arrangements depends on whether the arrangement provides indemnification against loss or liability relating to insurance risk in accordance with GAAP. For ceded reinsurance of existing in-force blocks of insurance contracts that transfer significant insurance risk, premiums, benefits and the amortization of DAC are reported net of reinsurance ceded. Amounts recoverable from reinsurers related to incurred claims and ceded reserves are included in premiums, reinsurance and other receivables and amounts payable to reinsurers included in other liabilities. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included in premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate. 123 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 1. 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. 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. Certain funds withheld arrangements may also contain embedded derivatives measured at fair value that are related to the investment return on the assets withheld. Embedded derivatives related to funds withheld arrangements are presented within policyholder account balances on the consolidated balance sheets, with changes in the estimated fair value reported in net derivative gains (losses). Reinsurance arrangements may also contain features classified as MRBs, including reinsurance of guaranteed minimum benefits associated with variable annuity contracts. The Company accounts for assumed reinsurance similar to directly written business. Investments Net Investment Income and Net Investment Gains (Losses) Income from investments is reported in net investment income, unless otherwise stated herein. Gains and losses on sales of investments, impairment losses and changes in valuation allowances are reported in net investment gains (losses), unless otherwise stated herein. Fixed Maturity Securities Available-For-Sale 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. Publicly-traded security transactions are recorded on a trade date basis, while privately-placed and bank loan security transactions are recorded on a settlement date basis. Investment gains and losses on sales are determined on a specific identification basis. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts and is based on the estimated economic life of the securities, which for residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”) considers the estimated timing and amount of prepayments of the underlying loans. The amortization of premium and accretion of discount of fixed maturity securities also takes into consideration call and maturity dates. Amortization of premium and accretion of discount on Structured Securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed, and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for Structured Securities are estimated using inputs obtained from third-party specialists and based on management’s knowledge of the current market. For credit-sensitive Structured Securities and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other Structured Securities, the effective yield is recalculated on a retrospective basis. The Company regularly evaluates fixed maturity securities for declines in fair value to determine if a credit loss exists. This evaluation is based on management’s case-by-case evaluation of the underlying reasons for the decline in fair value including, but not limited to, an analysis of the gross unrealized losses by severity and financial condition of the issuer. 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). 124 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 1. 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. If the Company determines the decline in estimated fair value is due to credit losses, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as an allowance through net investment gains (losses). If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of the allowance related to other-than-credit factors is recorded in OCI. Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. 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). 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 Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, and any deferred fees or expenses, and net of an allowance for credit losses. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. The allowance for credit losses for mortgage loans represents the Company’s best estimate of expected credit losses over the remaining life of the loans and is determined using relevant available information from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Policy Loans Policy loans are stated at unpaid principal balances. Interest income is recorded as earned using the contractual interest rate. Generally, accrued interest is capitalized on the policy’s anniversary date. Any unpaid principal and accrued interest is deducted from the cash surrender value or the death benefit prior to settlement of the insurance policy. Limited Partnerships and LLCs The Company uses the equity method of accounting for investments when it has more than a minor ownership interest or more than a minor influence over the investee’s operations; when the Company has virtually no influence over the investee’s operations the investment is carried at estimated fair value. The Company generally recognizes its share of the equity method investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period; while distributions on investments carried at estimated fair value are recognized as earned or received. Short-term Investments Short-term investments include securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase and are stated at estimated fair value or amortized cost, which approximates estimated fair value. The Company’s short-term investments generally involve large dollar amounts that turn over quickly and have short maturities. For the years ended December 31, 2025, 2024 and 2023, cash proceeds from sales, maturities and repayments of short-term investments were $ 3.6 billion, $ 3.3 billion and $ 4.2 billion, respectively. For the years ended December 31, 2025, 2024 and 2023, cash payments on purchases of short-term investments were $ 2.9 billion, $ 4.0 billion and $ 4.2 billion, respectively. Other Invested Assets Other invested assets consist principally of freestanding derivatives with positive estimated fair values which are described in “— Derivatives” below. 125 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Securities Lending Program Securities lending transactions whereby blocks of securities are loaned to third parties, primarily brokerage firms and commercial banks, are treated as financing arrangements and the associated liability is recorded at the amount of cash received. Income and expenses associated with securities lending transactions are reported as investment income and investment expense, respectively, in net investment income. The Company obtains collateral at the inception of the loan, usually cash, in an amount generally equal to 102 % of the estimated fair value of the securities loaned and maintains it at a level greater than or equal to 100 % for the duration of the loan. The Company monitors the estimated fair value of the securities loaned on a daily basis and additional collateral is obtained as necessary throughout the duration of the loan. Securities loaned under such transactions may be sold or re-pledged by the transferee. The Company is liable to return to the counterparties the cash collateral received. Funding Agreements The Company established liabilities for funding agreements associated with the Company’s institutional spread margin business, which are equal to the unpaid principal balance, adjusted for any unamortized premium or discount. Liabilities related to funding agreements are reported in policyholder account balances. Derivatives Freestanding Derivatives Freestanding derivatives are carried at estimated fair value on the Company’s balance sheet either as assets in other invested assets or as liabilities in other liabilities. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. If a derivative is not designated or did not qualify as an accounting hedge, changes in the estimated fair value of the derivative are reported in net derivative gains (losses). The Company generally reports cash received or paid for a derivative in the investing activity section of the statement of cash flows except for cash flows of certain derivative options with deferred premiums, which are reported in the financing activity section of the statement of cash flows. Hedge Accounting The Company primarily designates derivatives as a hedge of a forecasted transaction or a variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). When a derivative is designated as a cash flow hedge and is determined to be highly effective, changes in fair value are recorded in OCI and subsequently reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative or hedged item expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). The changes in estimated fair value of derivatives previously recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. 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). 126 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Embedded Derivatives The Company has index-linked annuities that are directly written or assumed through reinsurance contracts that contain embedded derivatives which are required to be separated from their host contracts and reported as derivatives. Certain funds withheld arrangements associated with reinsurance may also contain embedded derivatives. See “— Insurance Contract Obligations” and “— Reinsurance” for additional information on the accounting policies for embedded derivatives. Fair Value 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. In most cases, the exit price and the transaction (or entry) price will be the same at initial recognition. In determining the estimated fair value of the Company’s investments, fair values are based on unadjusted quoted prices for identical investments in active markets that are readily and regularly obtainable. When such quoted prices are not available, fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical investments, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring management judgment are used to determine the estimated fair value of investments. Separate Accounts Separate accounts underlying the Company’s variable life and annuity contracts are reported at fair value. Assets in separate accounts supporting the contract liabilities are legally insulated from the Company’s general account liabilities. Investments in these separate accounts are directed by the contract holder and all investment performance, net of contract fees and assessments, is passed through to the contract holder. Investment performance and the corresponding amounts credited to contract holders of such separate accounts are offset in the same line on the statements of operations. Separate accounts that do not pass all investment performance to the contract holder, including those underlying certain index-linked annuities, are combined on a line-by-line basis with the Company’s general account assets, liabilities, revenues and expenses. The accounting for investments in these separate accounts is consistent with the methodologies described herein for similar financial instruments held in the general account. The Company receives asset-based distribution and service fees from mutual funds available to the variable life and annuity contract holders as investment options in its separate accounts. These fees are recognized in the period in which the related services are performed and are included in other revenues. Income Tax The Company’s income tax provision was prepared following the modified separate return method. The modified separate return method applies the Accounting Standards Codification 740 — Income Taxes (“ASC 740”) to the standalone financial statements of each member of the consolidated group as if the member were a separate taxpayer and a standalone enterprise, after providing benefits for losses. 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, 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. 127 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 1. 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. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred income tax assets will not be realized. Significant judgment is required in determining whether valuation allowances should be established, as well as the amount of such allowances. 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. 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. The Company elects not to consider any future effects resulting from applicability of the CAMT when assessing the valuation allowance for regular deferred tax assets. The Company may be required to change its provision for income taxes when estimates used in determining valuation allowances on deferred tax assets significantly change or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, the effect of changes in tax laws, tax regulations, or interpretations of such laws or regulations, is recognized in net income tax expense (benefit) in the period of change. The Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded on the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Unrecognized tax benefits due to tax uncertainties that do not meet the threshold are included in other liabilities and are charged to earnings in the period that such determination is made. The Company classifies interest recognized as interest expense and penalties recognized as a component of income tax expense. Litigation and Other Loss Contingencies The Company is a party to or involved in a number of legal disputes, including litigation matters, as well as disputes or other matters involving third parties (e.g., vendors, reinsurers or tax or other authorities), and are subject in the ordinary course to a number of regulatory examinations and investigations. The Company reviews relevant information with respect to litigation and other loss contingencies related to these matters and establishes liabilities when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Legal costs are recognized as incurred. In matters where it is not probable, but it is reasonably possible that a loss will be incurred and the amount of loss can be reasonably estimated, such losses or range of losses are disclosed, and no accrual is made. In the absence of sufficient information to support an assessment of a reasonably possible loss or range of loss, no accrual is made and no loss or range of loss is disclosed. Other Accounting Policies Cash and Cash Equivalents The Company considers all highly liquid securities and other investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at estimated fair value or amortized cost, which approximates estimated fair value. Employee Benefit Plans Brighthouse Services, LLC (“Brighthouse Services”) sponsors qualified and non-qualified defined contribution plans, and New England Life Insurance Company (“NELICO”) sponsors certain frozen defined benefit pension and postretirement plans. NELICO recognizes the funded status of each of its pension plans, measured as the difference between the fair value of plan assets and the benefit obligation, which is the projected benefit obligation (“PBO”) for pension benefits in other assets or other liabilities. Brighthouse Services and NELICO are both indirect wholly-owned subsidiaries. 128 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) 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. Net periodic benefit costs are determined using management estimates and actuarial assumptions; and are comprised of service cost, interest cost, expected return on plan assets, amortization of net actuarial (gains) losses, settlement and curtailment costs, and amortization of prior service costs (credit). Adoption of New Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASU”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. Except as noted below, there were no significant ASUs adopted during the year ended December 31, 2025. 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 ): Disaggregation of Income Statement Expenses). This ASU requires public companies to disclose additional disaggregated information about expenses in the notes to financial statements at each interim and annual reporting period. This ASU is effective for fiscal years starting January 1, 2027, and for interim periods starting January 1, 2028. This ASU is required to be adopted prospectively with the option of retrospective application. The Company is currently evaluating the impact of this guidance on its financial statements. 2. Segment Information The Company is organized into and provides its products and services through the following reportable segments: Annuities; Life; Run-off; and Corporate & Other. The Company’s chief operating decision maker (“CODM”) views and manages the business through these segments. Annuities The Annuities segment consists of a variety of variable, fixed, index-linked and income annuities designed to address contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer and income security. Life 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. 129 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 2. Segment Information (continued) Run-off 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. 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. The Corporate & Other segment also includes long-term care business reinsured through 100% quota share reinsurance agreements. Financial Measure and Segment Accounting Policies The Company’s CODM is its Chief Executive Officer (“CEO”). The CEO uses adjusted earnings to evaluate segment performance and facilitate comparisons to industry results. The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by the investor community by highlighting the results of operations and the underlying profitability drivers of the business. Adjusted earnings, which may be positive or negative, focuses on the Company’s primary businesses by excluding the impact of market volatility, which could distort trends. 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; and • Net derivative gains (losses), excluding earned income and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment (“Investment Hedge Adjustments”). The following items are excluded from total expenses in calculating adjusted earnings: • Change in MRBs; and • 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. The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for the adjustments to calculate adjusted earnings described above. In addition, segment accounting policies include the methods of capital allocation described below. 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, 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. 130 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 2. Segment Information (continued) The tables below provide information about the Company’s segments, including significant segment expenses, and reconciliations to Net income (loss) available to common shareholders. Year Ended December 31, 2025 Annuities Life Run-off Corporate & Other Total (In millions) Total revenues $ 3,638 $ 1,149 $ 1,274 $ 705 $ 6,766 Less: Revenues excluded from adjusted earnings (1) ( 1,707 ) ( 20 ) ( 258 ) 96 Less: Segment expenses: Policyholder benefits and claims 456 724 625 — Interest credited to policyholder account balances, excluding market value adjustments 1,421 115 235 409 Amortization of DAC and VOBA 522 87 — — Interest expense on debt — — — 152 Other expenses (2) 1,397 198 128 83 Less: Provision for income tax expense (benefit) 295 4 108 ( 28 ) Less: Net income (loss) attributable to noncontrolling interests — — — 5 Less: Preferred stock dividends — — — 102 Adjusted earnings (loss) $ 1,254 $ 41 $ 436 $ ( 114 ) 1,617 Adjustments for: Net investment gains (losses) ( 97 ) Investment gains (losses) on trading securities — Net derivative gains (losses), excluding investment hedge adjustments of $ 0 ( 1,792 ) Change in market risk benefits 268 Market value adjustments ( 8 ) Provision for income tax (expense) benefit 343 Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ 331 Interest revenue $ 3,056 $ 432 $ 1,152 $ 604 131 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 2. Segment Information (continued) Year Ended December 31, 2024 Annuities Life Run-off Corporate & Other Total (In millions) Total revenues $ 1,932 $ 1,113 $ 996 $ 683 $ 4,724 Less: Revenues excluded from adjusted earnings (1) ( 3,350 ) ( 22 ) ( 599 ) ( 23 ) Less: 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 505 94 — — Interest expense on debt — — — 152 Other expenses (2) 1,399 188 166 41 Less: Provision for income tax expense (benefit) 297 5 16 ( 14 ) Less: Net income (loss) attributable to noncontrolling interests — — — 5 Less: Preferred stock dividends — — — 102 Adjusted earnings (loss) $ 1,251 $ 33 $ 65 $ ( 30 ) 1,319 Adjustments for: Net investment gains (losses) ( 295 ) Investment gains (losses) on trading securities — Net derivative gains (losses), excluding investment hedge adjustments of $ 31 ( 3,699 ) Change in market risk benefits 2,673 Market value adjustments 13 Provision for income tax (expense) benefit 275 Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ 286 Interest revenue $ 2,859 $ 466 $ 1,234 $ 694 132 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 2. Segment Information (continued) Year Ended December 31, 2023 Annuities Life Run-off Corporate & Other Total (In millions) Total revenues $ 944 $ 1,199 $ 1,405 $ 569 $ 4,117 Less: Revenues excluded from adjusted earnings (1) ( 3,934 ) ( 30 ) ( 238 ) ( 56 ) Less: 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 516 104 — — Interest expense on debt — — — 153 Other expenses (2) 1,391 203 167 63 Less: Provision for income tax expense (benefit) 268 ( 16 ) ( 23 ) ( 16 ) Less: Net income (loss) attributable to noncontrolling interests — — — 5 Less: Preferred stock dividends — — — 102 Adjusted earnings (loss) $ 1,169 $ ( 53 ) $ ( 77 ) $ ( 70 ) 969 Adjustments for: Net investment gains (losses) ( 246 ) Investment gains (losses) on trading securities — Net derivative gains (losses), excluding investment hedge adjustments of $ 105 ( 4,012 ) Change in market risk benefits 1,507 Market value adjustments ( 12 ) Provision for income tax (expense) benefit 580 Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ ( 1,214 ) Interest revenue $ 2,568 $ 437 $ 1,141 $ 623 _______________ (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. 133 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 2. Segment Information (continued) Total assets by segment were as follows at: December 31, 2025 2024 (In millions) Annuities $ 166,867 $ 163,830 Life 27,494 26,261 Run-off 25,455 24,873 Corporate & Other 21,984 23,573 Total $ 241,800 $ 238,537 Total premiums, universal life and investment-type product policy fees and other revenues by major product group were as follows: Years Ended December 31, 2025 2024 2023 (In millions) Annuity products $ 2,291 $ 2,426 $ 2,319 Life insurance products 1,102 1,018 1,280 Other products 18 21 7 Total $ 3,411 $ 3,465 $ 3,606 Substantially all of the Company’s premiums, universal life and investment-type product policy fees and other revenues originated in the U.S. Revenues derived from any individual customer did not exceed 10% of premiums, universal life and investment-type product policy fees and other revenues for the years ended December 31, 2025, 2024 and 2023. 134 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 3. Insurance Liabilities Liability for Future Policy Benefits Information regarding LFPBs for non-participating traditional and limited-payment contracts was as follows: Years Ended December 31, 2025 2024 2023 Term and Whole Life Insurance Income Annuities Structured Settlement and Pension Risk Transfer Annuities Term and Whole Life Insurance Income Annuities Structured Settlement and Pension Risk Transfer Annuities Term and Whole Life Insurance Income Annuities Structured Settlement and Pension Risk Transfer Annuities (Dollars in millions) Present value of expected net premiums: Balance, beginning of year $ 2,808 $ — $ — $ 2,974 $ — $ — $ 2,871 $ — $ — Beginning balance at original discount rate 3,161 — — 3,234 — — 3,212 — — Effect of model refinements 3 — — 4 — — — — — Effect of changes in cash flow assumptions ( 116 ) — — 128 — — 215 — — Effect of actual variances from expected experience ( 53 ) — — 7 — — ( 14 ) — — Adjusted beginning of year balance 2,995 — — 3,373 — — 3,413 — — Issuances 14 — — 67 — — 93 — — Interest accrual 104 — — 113 — — 112 — — Net premiums collected ( 366 ) — — ( 392 ) — — ( 384 ) — — Ending balance at original discount rate 2,747 — — 3,161 — — 3,234 — — Effect of changes in discount rate assumptions ( 243 ) — — ( 353 ) — — ( 260 ) — — Balance, end of year $ 2,504 $ — $ — $ 2,808 $ — $ — $ 2,974 $ — $ — Present value of expected future policy benefits: Balance, beginning of year $ 5,325 $ 3,763 $ 6,118 $ 5,507 $ 3,754 $ 6,697 $ 5,279 $ 3,512 $ 6,793 Beginning balance at original discount rate 5,989 4,161 6,876 6,023 4,031 7,085 5,922 3,897 7,410 Effect of model refinements 2 — 4 10 — — — — — Effect of changes in cash flow assumptions ( 130 ) 18 22 208 ( 23 ) 82 309 — — Effect of actual variances from expected experience ( 77 ) ( 38 ) ( 29 ) ( 9 ) — ( 10 ) ( 15 ) ( 34 ) ( 47 ) Adjusted beginning of year balance 5,784 4,141 6,873 6,232 4,008 7,157 6,216 3,863 7,363 Issuances 14 387 — 72 403 — 99 374 — Interest accrual 209 157 293 219 150 305 217 140 314 Benefit payments ( 494 ) ( 413 ) ( 531 ) ( 534 ) ( 400 ) ( 586 ) ( 509 ) ( 346 ) ( 592 ) Ending balance at original discount rate 5,513 4,272 6,635 5,989 4,161 6,876 6,023 4,031 7,085 Effect of changes in discount rate assumptions ( 460 ) ( 287 ) ( 626 ) ( 664 ) ( 398 ) ( 758 ) ( 516 ) ( 277 ) ( 388 ) Balance, end of year $ 5,053 $ 3,985 $ 6,009 $ 5,325 $ 3,763 $ 6,118 $ 5,507 $ 3,754 $ 6,697 Net liability for future policy benefits, end of year $ 2,549 $ 3,985 $ 6,009 $ 2,517 $ 3,763 $ 6,118 $ 2,533 $ 3,754 $ 6,697 Less: Reinsurance recoverable, end of year 26 32 56 29 31 59 42 31 65 Net liability for future policy benefits, after reinsurance recoverable $ 2,523 $ 3,953 $ 5,953 $ 2,488 $ 3,732 $ 6,059 $ 2,491 $ 3,723 $ 6,632 Weighted-average duration of liability 7.1 years 7.7 years 11.5 years 7.6 years 7.9 years 11.6 years 8.7 years 8.2 years 11.6 years Weighted-average interest accretion rate 3.92 % 4.13 % 4.47 % 3.94 % 4.03 % 4.46 % 3.94 % 3.97 % 4.46 % Current discount rate 5.01 % 5.13 % 5.47 % 5.42 % 5.47 % 5.64 % 4.94 % 4.95 % 5.03 % Gross premiums or assessments recognized during period $ 528 $ 511 $ — $ 575 $ 499 $ — $ 611 $ 488 $ — Expected future gross premiums, undiscounted $ 5,121 $ — $ — $ 5,909 $ — $ — $ 6,172 $ — $ — Expected future gross premiums, discounted $ 3,826 $ — $ — $ 4,352 $ — $ — $ 4,642 $ — $ — Expected future benefit payments, undiscounted $ 7,395 $ 6,013 $ 12,820 $ 8,164 $ 5,863 $ 13,336 $ 8,332 $ 5,710 $ 13,767 Expected future benefit payments, discounted $ 5,513 $ 4,272 $ 6,635 $ 5,989 $ 4,161 $ 6,876 $ 6,023 $ 4,031 $ 7,085 135 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 3. Insurance Liabilities (continued) The measurement of LFPBs can be significantly impacted by changes in assumptions for policyholder behavior. 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. Information regarding the additional insurance liabilities for universal life-type contracts with secondary guarantees was as follows: Years Ended December 31, 2025 2024 2023 (Dollars in millions) Balance, beginning of year $ 8,986 $ 7,607 $ 6,935 Beginning balance before the effect of unrealized gains and losses 9,277 7,784 7,175 Effect of changes in cash flow assumptions 480 895 52 Effect of actual variances from expected experience 133 167 145 Adjusted beginning of year balance 9,890 8,846 7,372 Interest accrual 469 406 357 Net assessments collected 480 446 414 Benefit payments ( 541 ) ( 421 ) ( 359 ) Ending balance before the effect of unrealized gains and losses 10,298 9,277 7,784 Effect of unrealized gains and losses ( 221 ) ( 291 ) ( 177 ) Balance, end of year 10,077 8,986 7,607 Less: Reinsurance recoverable, end of year 1,801 1,535 1,438 Net additional liability, after reinsurance recoverable $ 8,276 $ 7,451 $ 6,169 Weighted-average duration of liability 6.6 years 6.6 years 6.7 years Weighted-average interest accretion rate 4.95 % 4.94 % 4.92 % Gross assessments recognized during period $ 1,076 $ 1,083 $ 1,064 The measurement of liabilities for secondary guarantees can be significantly impacted by changes in assumptions for policyholder behavior, as well as the expected general account rate of return, which is driven by the Company’s assumption for long-term treasury yields. The Company’s practice of projecting treasury yields uses a mean reversion approach that assumes that long-term interest rates are less influenced by short-term fluctuations and are only changed when sustained interim deviations are expected. As part of the 2025 and 2024 AARs, the Company updated assumptions regarding policyholder behavior, including mortality, premium persistency, lapses and withdrawals. In 2025, the Company also increased the long-term general account earned rate, driven by an increase in the mean reversion rate, from 4.00 % to 4.50 %. The impact from changes in assumptions, excluding the effects on the ULSG liability for profits followed by losses, is presented in effect of changes in cash flow assumptions in the table above. 136 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 3. Insurance Liabilities (continued) A reconciliation of the net LFPBs for non-participating traditional and limited-payment contracts and the additional insurance liabilities for universal life-type contracts with secondary guarantees reported in the preceding rollforward tables to LFPBs on the consolidated balance sheets was as follows at: December 31, 2025 2024 (In millions) Liabilities reported in the preceding rollforward tables $ 22,620 $ 21,384 Long-term care insurance (1) 5,203 5,190 ULSG liabilities, including liability for profits followed by losses (2) 57 875 Participating whole life insurance (3) 3,295 3,217 Deferred profit liabilities 457 431 Other 393 378 Total liability for future policy benefits $ 32,025 $ 31,475 _______________ (1) Includes liabilities related to fully reinsured individual long-term care insurance. 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. Participating whole life insurance represented 3 % of the Company’s life insurance in-force at both December 31, 2025 and 2024, and 38 % and 39 % of gross traditional life insurance premiums for the years ended December 31, 2025 and 2024, respectively. 137 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 3. Insurance Liabilities (continued) Policyholder Account Balances Information regarding policyholder account balances was as follows: Universal Life Insurance Variable Annuities (1) Index-linked Annuities Fixed Rate Annuities ULSG Company-Owned Life Insurance (1) (Dollars in millions) Year Ended December 31, 2025 Balance, beginning of year $ 2,590 $ 3,833 $ 48,605 $ 14,665 $ 4,779 $ 1,166 Premiums and deposits 261 50 8,396 1,225 604 — Surrenders and withdrawals ( 100 ) ( 605 ) ( 7,861 ) ( 2,835 ) ( 29 ) — Benefit payments ( 62 ) ( 94 ) ( 365 ) ( 365 ) ( 87 ) ( 10 ) Net transfers from (to) separate account 45 131 — — — ( 524 ) Interest credited 109 107 756 562 154 21 Policy charges ( 218 ) ( 19 ) ( 39 ) — ( 960 ) ( 7 ) Changes related to embedded derivatives 2 — 3,102 — — — Balance, end of year $ 2,627 $ 3,403 $ 52,594 $ 13,252 $ 4,461 $ 646 Weighted-average crediting rate (2) 4.18 % 2.95 % 1.93 % 3.97 % 3.33 % 2.78 % Year Ended December 31, 2024 Balance, beginning of year $ 2,550 $ 4,307 $ 41,627 $ 14,672 $ 5,052 $ 653 Premiums and deposits 248 73 8,228 1,127 645 — Surrenders and withdrawals ( 95 ) ( 670 ) ( 5,532 ) ( 1,356 ) ( 23 ) — Benefit payments ( 41 ) ( 98 ) ( 324 ) ( 345 ) ( 70 ) ( 9 ) Net transfers from (to) separate account 51 127 — — — 500 Interest credited 92 114 673 567 163 29 Policy charges ( 215 ) ( 20 ) ( 23 ) — ( 988 ) ( 7 ) Changes related to embedded derivatives — — 3,956 — — — Balance, end of year $ 2,590 $ 3,833 $ 48,605 $ 14,665 $ 4,779 $ 1,166 Weighted-average crediting rate (2) 3.58 % 2.81 % 1.79 % 3.84 % 3.32 % 3.63 % Year Ended December 31, 2023 Balance, beginning of year $ 2,658 $ 4,908 $ 33,897 $ 14,274 $ 5,307 $ 641 Premiums and deposits 230 76 7,183 2,694 660 — Surrenders and withdrawals ( 163 ) ( 693 ) ( 3,732 ) ( 2,405 ) ( 23 ) — Benefit payments ( 67 ) ( 111 ) ( 240 ) ( 377 ) ( 85 ) ( 8 ) Net transfers from (to) separate account 46 18 — — — 1 Interest credited 66 133 445 486 208 28 Policy charges ( 220 ) ( 24 ) ( 11 ) — ( 1,015 ) ( 9 ) Changes related to embedded derivatives — — 4,085 — — — Balance, end of year $ 2,550 $ 4,307 $ 41,627 $ 14,672 $ 5,052 $ 653 Weighted-average crediting rate (2) 2.56 % 2.90 % 1.47 % 3.31 % 4.02 % 4.33 % _______________ (1) Includes liabilities related to separate account products where the contract holder elected a general account investment option. (2) Excludes the effects of embedded derivatives related to index-linked crediting rates. 138 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 3. Insurance Liabilities (continued) A reconciliation of policyholder account balances reported in the preceding rollforward table to the liability for policyholder account balances on the consolidated balance sheets was as follows at: December 31, 2025 2024 (In millions) Policyholder account balances reported in the preceding rollforward table $ 76,983 $ 75,638 Funding agreements classified as investment contracts 9,502 11,002 Institutional group annuities 569 370 Other investment contract liabilities 898 979 Total policyholder account balances $ 87,952 $ 87,989 139 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 3. Insurance Liabilities (continued) The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums was as follows at: Range of Guaranteed Minimum Crediting Rate At Guaranteed Minimum 1 to 50 Basis Points Above 51 to 150 Basis Points Above Greater than 150 Basis Points Above Total (In millions) December 31, 2025 Annuities (1): Less than 2.00 % $ 394 $ 126 $ 188 $ 8,134 $ 8,842 2.00 % to 3.99 % 6,283 498 517 327 7,625 Greater than 3.99 % 740 — — — 740 Total $ 7,417 $ 624 $ 705 $ 8,461 $ 17,207 Life insurance (2) (3): Less than 2.00 % $ — $ — $ — $ 413 $ 413 2.00 % to 3.99 % — 529 43 112 684 Greater than 3.99 % 1,469 — — — 1,469 Total $ 1,469 $ 529 $ 43 $ 525 $ 2,566 ULSG (3): Less than 2.00 % $ — $ — $ — $ — $ — 2.00 % to 3.99 % 965 1,279 1,496 222 3,962 Greater than 3.99 % 484 — — — 484 Total $ 1,449 $ 1,279 $ 1,496 $ 222 $ 4,446 December 31, 2024 Annuities (1): Less than 2.00 % $ 562 $ 126 $ 240 $ 8,769 $ 9,697 2.00 % to 3.99 % 7,160 462 492 385 8,499 Greater than 3.99 % 783 — — — 783 Total $ 8,505 $ 588 $ 732 $ 9,154 $ 18,979 Life insurance (2) (3): Less than 2.00 % $ — $ — $ — $ 317 $ 317 2.00 % to 3.99 % — 522 48 131 701 Greater than 3.99 % 1,530 — — — 1,530 Total $ 1,530 $ 522 $ 48 $ 448 $ 2,548 ULSG (3): Less than 2.00 % $ — $ — $ — $ — $ — 2.00 % to 3.99 % 1,052 1,386 1,602 238 4,278 Greater than 3.99 % 484 — — — 484 Total $ 1,536 $ 1,386 $ 1,602 $ 238 $ 4,762 _______________ (1) Includes policyholder account balances for fixed rate annuities and the fixed account portion of variable annuities. (2) Includes policyholder account balances for retained asset accounts, universal life policies and the fixed account portion of universal variable life insurance policies. (3) Amounts are gross of policy loans. See Note 5 for information regarding net amount at risk and cash surrender values. 140 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 3. Insurance Liabilities (continued) Obligations Under Funding Agreements Institutional Spread Margin Business 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 $ 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 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”). Funding agreements are issued to FHLB and Farmer Mac in exchange for cash, for which these programs have been granted liens on certain assets, some of which are in their custody to collateralize the Company’s obligations under the funding agreements. Upon any event of default by the Company, the program recovery on the collateral is limited to the amount of the Company’s liabilities to FHLB and Farmer Mac, respectively. The Company had obligations outstanding under these programs of $ 4.7 billion and $ 5.0 billion at December 31, 2025 and 2024, respectively. See Note 8 for information on invested assets pledged as collateral in connection with funding agreements. 4. Market Risk Benefits Information regarding MRB assets and liabilities associated with variable annuities was as follows: Years Ended December 31, 2025 2024 2023 (Dollars in millions) Balance, beginning of year $ 7,233 $ 9,701 $ 9,974 Balance, beginning of year, before effect of changes in nonperformance risk 5,219 7,326 8,230 Decrements ( 197 ) ( 178 ) ( 176 ) Effect of changes in future expected assumptions 613 ( 53 ) 259 Effect of actual different from expected experience 154 140 187 Effect of changes in interest rates 194 ( 1,940 ) ( 428 ) 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 ) Effect of changes in risk margin ( 69 ) ( 72 ) ( 34 ) Aging of the block and other 1,201 898 1,604 Balance, end of year, before effect of changes in nonperformance risk 5,413 5,219 7,326 Effect of changes in nonperformance risk 1,588 2,014 2,375 Balance, end of year 7,001 7,233 9,701 Less: Reinsurance recoverable, end of year 8 17 43 Balance, end of year, net of reinsurance (1) $ 6,993 $ 7,216 $ 9,658 Weighted-average attained age of contract holder 74.6 years 73.8 years 72.9 years _______________ (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. 141 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 4. Market Risk Benefits (continued) 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 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. 5. Separate Accounts Separate Accounts Information regarding separate account liabilities was as follows: Years Ended December 31, 2025 2024 2023 Variable Annuities Universal Life Insurance Company-Owned Life Insurance Variable Annuities Universal Life Insurance Company-Owned Life Insurance Variable Annuities Universal Life Insurance Company-Owned Life Insurance (In millions) Balance, beginning of year $ 77,151 $ 6,419 $ 1,808 $ 79,990 $ 5,921 $ 2,162 $ 77,653 $ 5,218 $ 1,932 Premiums and deposits 978 144 — 834 152 — 766 162 — Surrenders and withdrawals ( 8,263 ) ( 241 ) ( 32 ) ( 8,291 ) ( 217 ) ( 29 ) ( 6,346 ) ( 180 ) ( 19 ) Benefit payments ( 1,703 ) ( 95 ) ( 35 ) ( 1,555 ) ( 69 ) ( 22 ) ( 1,434 ) ( 68 ) ( 28 ) Investment performance 9,967 884 246 8,494 897 254 11,549 1,041 328 Policy charges ( 2,055 ) ( 206 ) ( 63 ) ( 2,168 ) ( 214 ) ( 53 ) ( 2,160 ) ( 206 ) ( 49 ) Net transfers from (to) general account ( 131 ) ( 45 ) 524 ( 127 ) ( 51 ) ( 500 ) ( 18 ) ( 46 ) ( 1 ) Other ( 26 ) — 9 ( 26 ) — ( 4 ) ( 20 ) — ( 1 ) Balance, end of year $ 75,918 $ 6,860 $ 2,457 $ 77,151 $ 6,419 $ 1,808 $ 79,990 $ 5,921 $ 2,162 A reconciliation of separate account liabilities reported in the preceding rollforward table to the separate account liabilities balance on the consolidated balance sheets was as follows at: December 31, 2025 2024 (In millions) Separate account liabilities reported in the preceding rollforward table $ 85,235 $ 85,378 Variable income annuities 267 235 Pension risk transfer annuities 26 23 Total separate account liabilities $ 85,528 $ 85,636 The aggregate estimated fair value of assets, by major investment asset category, supporting separate accounts was as follows at: December 31, 2025 2024 (In millions) Equity securities $ 85,314 $ 85,423 Fixed maturity securities 211 207 Cash and cash equivalents — 2 Other assets 3 4 Total aggregate estimated fair value of assets $ 85,528 $ 85,636 142 Table of Conte nts Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 5. Separate Accounts (continued) Net Amount at Risk and Cash Surrender Values Information regarding the net amount at risk and cash surrender value for insurance products was as follows at: Universal Life Insurance Variable Annuities Index-linked Annuities Fixed Rate Annuities ULSG Company-Owned Life Insurance (In millions) December 31, 2025 Account balances reported in the preceding rollforward tables: Policyholder account balances $ 2,627 $ 3,403 $ 52,594 $ 13,252 $ 4,461 $ 646 Separate account liabilities 6,860 75,918 — — — 2,457 Total account balances $ 9,487 $ 79,321 $ 52,594 $ 13,252 $ 4,461 $ 3,103 Net amount at risk $ 31,400 $ 11,915 N/A N/A $ 61,647 $ 2,611 Cash surrender value $ 8,899 $ 78,985 $ 52,999 $ 13,275 $ 4,074 $ 2,901 December 31, 2024 Account balances reported in the preceding rollforward tables: Policyholder account balances $ 2,590 $ 3,833 $ 48,605 $ 14,665 $ 4,779 $ 1,166 Separate account liabilities 6,419 77,151 — — — 1,808 Total account balances $ 9,009 $ 80,984 $ 48,605 $ 14,665 $ 4,779 $ 2,974 Net amount at risk $ 33,227 $ 12,817 N/A N/A $ 63,580 $ 2,657 Cash surrender value $ 8,425 $ 80,592 $ 47,013 $ 14,361 $ 4,316 $ 2,142 December 31, 2023 Account balances reported in the preceding rollforward tables: Policyholder account balances $ 2,550 $ 4,307 $ 41,627 $ 14,672 $ 5,052 $ 653 Separate account liabilities 5,921 79,990 — — — 2,162 Total account balances $ 8,471 $ 84,297 $ 41,627 $ 14,672 $ 5,052 $ 2,815 Net amount at risk $ 35,583 $ 13,240 N/A N/A $ 65,299 $ 2,659 Cash surrender value $ 7,881 $ 83,852 $ 39,270 $ 14,068 $ 4,498 $ 2,593 Products may contain both separate account and general account fund options; accordingly, net amount at risk and cash surrender value reported in the table above relate to the total account balance for each respective product grouping. 143 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 6. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles Deferred Policy Acquisition Costs and Value of Business Acquired See Note 1 for a description of capitalized acquisition costs. Information regarding DAC and VOBA was as follows: Variable Annuities Fixed Rate Annuities Index-linked Annuities Term and Whole Life Insurance Universal Life Insurance (In millions) DAC: Balance at January 1, 2023 $ 2,508 $ 107 $ 1,213 $ 405 $ 392 Capitalization 36 14 343 2 13 Amortization ( 243 ) ( 11 ) ( 225 ) ( 53 ) ( 45 ) Balance at December 31, 2023 2,301 110 1,331 354 360 Capitalization 39 8 373 4 13 Amortization ( 224 ) ( 3 ) ( 242 ) ( 48 ) ( 41 ) Balance at December 31, 2024 2,116 115 1,462 310 332 Capitalization 46 7 394 ( 2 ) 21 Amortization ( 213 ) ( 2 ) ( 275 ) ( 43 ) ( 38 ) Balance at December 31, 2025 $ 1,949 $ 120 $ 1,581 $ 265 $ 315 VOBA: Balance at January 1, 2023 $ 341 $ 65 $ — $ 5 $ 48 Amortization ( 32 ) ( 5 ) — ( 1 ) ( 5 ) Balance at December 31, 2023 309 60 — 4 43 Amortization ( 30 ) ( 5 ) — ( 1 ) ( 5 ) Balance at December 31, 2024 279 55 — 3 38 Amortization ( 28 ) ( 4 ) — — ( 6 ) Balance at December 31, 2025 $ 251 $ 51 $ — $ 3 $ 32 Total DAC and VOBA: Balance at December 31, 2025 $ 2,200 $ 171 $ 1,581 $ 268 $ 347 Balance at December 31, 2024 $ 2,395 $ 170 $ 1,462 $ 313 $ 370 Balance at December 31, 2023 $ 2,610 $ 170 $ 1,331 $ 358 $ 403 Deferred Sales Inducements Information regarding DSI, included in other assets, was as follows: December 31, 2025 2024 2023 Variable Annuities Fixed Rate Annuities Variable Annuities Fixed Rate Annuities Variable Annuities Fixed Rate Annuities (In millions) Balance, beginning of year $ 198 $ 6 $ 220 $ 8 $ 245 $ 9 Capitalization — — 1 — 1 — Amortization ( 21 ) ( 1 ) ( 23 ) ( 2 ) ( 26 ) ( 1 ) Balance, end of year $ 177 $ 5 $ 198 $ 6 $ 220 $ 8 144 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 6. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles (continued) Unearned Revenue Information regarding unearned revenue, included in other policy-related balances, was as follows: December 31, 2025 2024 2023 Universal Life Insurance ULSG Variable Annuities Universal Life Insurance ULSG Variable Annuities Universal Life Insurance ULSG Variable Annuities (In millions) Balance, beginning of year $ 357 $ 715 $ 60 $ 356 $ 612 $ 67 $ 357 $ 488 $ 74 Capitalization 38 154 — 37 166 — 38 174 — Amortization ( 35 ) ( 76 ) ( 6 ) ( 36 ) ( 63 ) ( 7 ) ( 39 ) ( 50 ) ( 7 ) Balance, end of year $ 360 $ 793 $ 54 $ 357 $ 715 $ 60 $ 356 $ 612 $ 67 7. Reinsurance The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products and also as a provider of reinsurance for some insurance products issued by former affiliated and unaffiliated companies. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth. Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the aforementioned assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance and evaluates the financial strength of counterparties to its reinsurance agreements using criteria similar to that evaluated in the security impairment process discussed in Note 8. Annuities and Life For annuities, the Company reinsures portions of the living and death benefit guarantees issued in connection with certain variable annuities to unaffiliated reinsurers. Under these reinsurance agreements, the Company pays a reinsurance premium generally based on fees associated with the guarantees collected from policyholders and receives reimbursement for benefits paid or accrued in excess of account values, subject to certain limitations. The value of MRBs on the ceded risk is determined using a methodology consistent with the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. The Company cedes certain fixed rate annuities to unaffiliated third-party reinsurers and assumes certain index-linked annuities from an unaffiliated third-party insurer. These reinsurance arrangements are structured on a coinsurance basis and are reported as deposit accounting. For its life products, the Company has historically reinsured the mortality risk primarily on an excess of retention basis or on a quota share basis. In addition to reinsuring mortality risk as described above, the Company reinsures other risks, as well as specific coverages. Placement of reinsurance is done primarily on an automatic basis and also on a facultative basis for risks with specified characteristics. On a case-by-case basis, the Company may retain up to $ 20 million per life and reinsure 100 % of amounts in excess of the amount the Company retains. The Company also reinsures 90 % of the risk associated with participating whole life policies to a former affiliate and assumes certain term life policies and universal life policies with secondary death benefit guarantees issued by a former affiliate. The Company evaluates its reinsurance programs routinely and may increase or decrease its retention at any time. Corporate & Other The Company reinsures, through 100 % quota share reinsurance agreements, certain run-off long-term care and workers’ compensation business written by the Company. At December 31, 2025, the Company had $ 5.5 billion of reinsurance recoverables associated with its reinsured long-term care business. The reinsurer has established trust accounts for the Company’s benefit to secure their obligations under the reinsurance agreements. Additionally, the Company is indemnified for losses and certain other payment obligations it might incur with respect to such reinsured long-term care insurance business. 145 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 7. Reinsurance (continued) Catastrophe Coverage The Company has exposure to catastrophes which could contribute to significant fluctuations in the Company’s results of operations. The Company uses excess of retention and quota share reinsurance agreements to provide greater diversification of risk and minimize exposure to larger risks. Reinsurance Recoverables The Company reinsures its business through a diversified group of primarily highly rated reinsurers. The Company analyzes recent trends in arbitration and litigation outcomes in disputes, if any, with its reinsurers and monitors ratings and the financial strength of its reinsurers. In addition, the reinsurance recoverable balance due from each reinsurer and the recoverability of such balance is evaluated as part of this overall monitoring process. The Company generally secures large reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. These reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance, which at both December 31, 2025 and 2024 were not significant. The Company had $ 6.5 billion and $ 6.2 billion of unsecured reinsurance recoverable balances with third-party reinsurers at December 31, 2025 and 2024, respectively. The Company records an allowance for credit losses which is a valuation account that reduces reinsurance recoverable balances to present the net amount expected to be collected from reinsurers. When assessing the creditworthiness of the Company’s reinsurance recoverable balances, beyond the analysis of individual claims disputes, the Company considers the financial strength of its reinsurers using public ratings and ratings reports, current existing credit enhancements to reinsurance agreements and the statutory and GAAP financial statements of the reinsurers. Impairments are then determined based on probable and estimable defaults. The Company had an allowance for credit losses of $ 3 million on its reinsurance recoverable balances at both December 31, 2025 and 2024. At December 31, 2025, the Company had $ 19.7 billion of net ceded reinsurance recoverables with third-party reinsurers. Of this total, $ 16.5 billion, or 84 %, were with the Company’s five largest ceded reinsurers, including $ 3.9 billion of net ceded reinsurance recoverables which were unsecured. At December 31, 2024, the Company had $ 19.8 billion of net ceded reinsurance recoverables with third-party reinsurers. Of this total, $ 17.0 billion, or 86 %, were with the Company’s five largest ceded reinsurers, including $ 4.4 billion of net ceded reinsurance recoverables which were unsecured. 146 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 7. Reinsurance (continued) The amounts on the consolidated statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows: Years Ended December 31, 2025 2024 2023 (In millions) Premiums Direct premiums $ 1,264 $ 1,395 $ 1,499 Reinsurance assumed 9 12 14 Reinsurance ceded ( 578 ) ( 637 ) ( 685 ) Net premiums $ 695 $ 770 $ 828 Universal life and investment-type product policy fees Direct universal life and investment-type product policy fees $ 2,879 $ 2,976 $ 2,941 Reinsurance assumed 52 53 49 Reinsurance ceded ( 770 ) ( 913 ) ( 695 ) Net universal life and investment-type product policy fees $ 2,161 $ 2,116 $ 2,295 Other revenues Direct other revenues $ 266 $ 286 $ 269 Reinsurance assumed 15 7 2 Reinsurance ceded 274 286 212 Net other revenues $ 555 $ 579 $ 483 Policyholder benefits and claims Direct policyholder benefits and claims $ 3,730 $ 3,959 $ 3,946 Reinsurance assumed 106 80 84 Reinsurance ceded ( 2,031 ) ( 1,745 ) ( 1,354 ) Net policyholder benefits and claims $ 1,805 $ 2,294 $ 2,676 Change in market risk benefits Direct change in market risk benefits $ ( 278 ) $ ( 2,713 ) $ ( 1,537 ) Reinsurance assumed ( 3 ) 7 ( 1 ) Reinsurance ceded 13 33 31 Net change in market risk benefits $ ( 268 ) $ ( 2,673 ) $ ( 1,507 ) The amounts on the consolidated balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at: December 31, 2025 2024 Direct Assumed Ceded Total Balance Sheet Direct Assumed Ceded Total Balance Sheet (In millions) Assets Premiums, reinsurance and other receivables (net of allowance for credit losses) $ 473 $ 1 $ 21,105 $ 21,579 $ 507 $ 3 $ 20,616 $ 21,126 Market risk benefit assets $ 1,052 $ — $ 8 $ 1,060 $ 1,075 $ — $ 17 $ 1,092 Liabilities Future policy benefits $ 31,913 $ 112 $ — $ 32,025 $ 31,366 $ 109 $ — $ 31,475 Policyholder account balances $ 84,538 $ 3,414 $ — $ 87,952 $ 83,846 $ 4,143 $ — $ 87,989 Market risk benefit liabilities $ 8,049 $ 14 $ — $ 8,063 $ 8,313 $ 16 $ — $ 8,329 Other policy-related balances $ 2,376 $ 1,517 $ — $ 3,893 $ 2,324 $ 1,554 $ — $ 3,878 Other liabilities $ 7,419 $ 16 $ 2,211 $ 9,646 $ 7,422 $ 25 $ 1,713 $ 9,160 147 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 7. Reinsurance (continued) Reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on reinsurance were $ 8.0 billion and $ 8.5 billion at December 31, 2025 and 2024, respectively. The deposit liabilities on reinsurance were $ 3.2 billion and $ 3.8 billion at December 31, 2025 and 2024, respectively. 8. Investments 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 Fixed Maturity Securities by Sector Fixed maturity securities by sector were as follows at: December 31, 2025 December 31, 2024 Amortized Cost Allowance for Credit Losses Gross Unrealized Estimated Fair Value Amortized Cost Allowance for Credit Losses Gross Unrealized Estimated Fair Value Gains Losses Gains Losses (In millions) U.S. corporate $ 41,590 $ 27 $ 443 $ 3,097 $ 38,909 $ 40,894 $ 47 $ 215 $ 3,939 $ 37,123 Foreign corporate 12,380 31 145 997 11,497 13,284 26 53 1,481 11,830 RMBS 9,029 3 85 579 8,532 8,120 4 46 875 7,287 U.S. government and agency 7,216 — 105 610 6,711 7,408 — 40 701 6,747 ABS 6,081 — 33 55 6,059 6,354 — 33 75 6,312 CMBS 6,086 3 13 226 5,870 6,776 4 6 422 6,356 State and political subdivision 3,691 — 103 300 3,494 3,731 — 81 371 3,441 Foreign government 973 — 36 67 942 1,036 — 24 101 959 Total fixed maturity securities $ 87,046 $ 64 $ 963 $ 5,931 $ 82,014 $ 87,603 $ 81 $ 498 $ 7,965 $ 80,055 The Company held non-income producing fixed maturity securities with an estimated fair value of $ 14 million and $ 30 million at December 31, 2025 and 2024, respectively. Maturities of Fixed Maturity Securities 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 (In millions) Amortized cost $ 5,104 $ 19,598 $ 13,148 $ 28,000 $ 21,196 $ 87,046 Estimated fair value $ 5,075 $ 19,365 $ 12,779 $ 24,334 $ 20,461 $ 82,014 Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. 148 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 8. Investments (continued) Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector 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, 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) U.S. corporate $ 4,160 $ 395 $ 19,089 $ 2,702 $ 10,764 $ 719 $ 17,660 $ 3,220 Foreign corporate 1,382 179 5,259 818 3,277 351 5,560 1,130 RMBS 818 49 4,361 530 1,223 81 4,647 794 U.S. government and agency 600 10 2,255 600 2,457 118 1,884 583 ABS 513 2 751 53 717 10 1,081 65 CMBS 329 2 4,291 224 1,326 90 4,402 332 State and political subdivision 255 7 1,799 293 882 64 1,447 307 Foreign government 54 5 558 62 272 30 431 71 Total fixed maturity securities $ 8,111 $ 649 $ 38,363 $ 5,282 $ 20,918 $ 1,463 $ 37,112 $ 6,502 Total number of securities in an unrealized loss position 1,328 5,093 3,362 5,272 Allowance for Credit Losses for Fixed Maturity Securities Evaluation and Measurement Methodologies For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). 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. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in OCI. Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. 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). 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. Accrued interest receivables are presented separate from the amortized cost basis of fixed maturity securities. An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income. The accrued interest receivable on fixed maturity securities totaled $ 671 million and $ 672 million at December 31, 2025 and 2024, respectively, and is included in accrued investment income. 149 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 8. Investments (continued) Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”). To determine if the credit deterioration experienced since origination is more than insignificant, both (i) the extent of the credit deterioration and (ii) any rating agency downgrades are evaluated. For securities categorized as PCD assets, the present value of cash flows expected to be collected from the security are compared to the par value of the security. If the present value of cash flows expected to be collected is less than the par value, credit losses are embedded in the purchase price of the PCD asset. In this situation, both an allowance for credit losses and amortized cost gross-up is recorded, limited by the amount that the estimated fair value is less than the grossed-up amortized cost basis. Any difference between the purchase price and the present value of cash flows is amortized or accreted into net investment income over the life of the PCD asset. Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities. Current Period Evaluation Based on the Company’s current evaluation of its fixed maturity securities in an unrealized loss position and the current intent or requirement to sell, the Company recorded an allowance for credit losses of $ 64 million, relating to 22 securities, at December 31, 2025. Management concluded that for all other fixed maturity securities in an unrealized loss position, the unrealized loss was not due to issuer-specific credit-related factors and as a result was recognized in OCI. Where unrealized losses have not been recognized into income, it is primarily because the securities’ bond issuer(s) are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in estimated fair value is largely due to changes in interest rates and non-issuer specific credit spreads. These issuers continued to make timely principal and interest payments and the estimated fair value is expected to recover as the securities approach maturity. Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector The changes in the allowance for credit losses for fixed maturity securities by sector were as follows: U.S. Corporate Foreign Corporate RMBS CMBS Total (In millions) Balance at December 31, 2023 $ 15 $ — $ 5 $ 1 $ 21 Allowance on securities where credit losses were not previously recorded 29 26 — 3 58 Reductions for securities sold — — — — — Change in allowance on securities with an allowance recorded in a previous period 3 — ( 1 ) — 2 Write-offs charged against allowance (1) — — — — — Balance at December 31, 2024 47 26 4 4 81 Allowance on securities where credit losses were not previously recorded 4 — — — 4 Reductions for securities sold ( 4 ) — — ( 1 ) ( 5 ) Change in allowance on securities with an allowance recorded in a previous period 7 5 ( 1 ) — 11 Write-offs charged against allowance (1) ( 27 ) — — — ( 27 ) Balance at December 31, 2025 $ 27 $ 31 $ 3 $ 3 $ 64 _______________ (1) The Company recorded total write-offs of $ 33 million and $ 12 million for the years ended December 31, 2025 and 2024, respectively. 150 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 8. Investments (continued) Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: December 31, 2025 2024 Carrying Value % of Total Carrying Value % of Total (Dollars in millions) Commercial $ 12,323 54.2 % $ 13,330 57.2 % Agricultural 4,656 20.5 4,591 19.7 Residential 5,976 26.3 5,543 23.8 Total mortgage loans (1) 22,955 101.0 23,464 100.7 Allowance for credit losses ( 200 ) ( 1.0 ) ( 178 ) ( 0.7 ) Total mortgage loans, net $ 22,755 100.0 % $ 23,286 100.0 % _______________ (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 Evaluation and Measurement Methodologies The allowance for credit losses is a valuation account that is deducted from the mortgage loan’s amortized cost basis to present the net amount expected to be collected on the mortgage loan. The loan balance, or a portion of the loan balance, is written-off against the allowance when management believes this amount is uncollectible. Accrued interest receivables are presented separate from the amortized cost basis of mortgage loans. 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 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. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two years is used with an input reversion period of one year. Mortgage loans are evaluated in each of the three portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity. The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, modifications, foreclosure probable loans, and loans with dissimilar risk characteristics. Mortgage loans are also evaluated to determine if they qualify as PCD assets. To determine if the credit deterioration experienced since origination is more than insignificant, the extent of credit deterioration is evaluated. All re-performing/modified loan (“RPL”) pools purchased after December 31, 2019 are determined to have been acquired with evidence of more than insignificant credit deterioration since origination and are classified as PCD assets. RPLs are pools of residential mortgage loans acquired at a discount or premium which have both credit and non-credit components. 151 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 8. 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. The initial allowance for credit losses, determined on a collective basis, is then allocated to the individual loans. The initial amortized cost of the loan is grossed-up to reflect the sum of the loan’s purchase price and allowance for credit losses. The difference between the grossed-up amortized cost basis and the par value of the loan is a non-credit discount or premium, which is accreted or amortized into net investment income over the remaining life of the loan. Any subsequent PCD mortgage loan allowance for credit losses is evaluated in a manner similar to the process described above for each of the three portfolio segments. Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment 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 $ 69 $ 19 $ 49 $ 137 Current period provision 50 11 ( 7 ) 54 Charge-offs, net of recoveries ( 13 ) — — ( 13 ) Balance at December 31, 2024 106 30 42 178 Current period provision 76 2 4 82 Charge-offs, net of recoveries ( 48 ) ( 12 ) — ( 60 ) Balance at December 31, 2025 $ 134 $ 20 $ 46 $ 200 152 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 8. Investments (continued) Credit Quality of Mortgage Loans by Portfolio Segment The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at: 2025 2024 2023 2022 2021 Prior Total (In millions) December 31, 2025 Commercial mortgage loans Loan-to-value ratios: Less than 65% $ 423 $ 668 $ 157 $ 483 $ 1,713 $ 2,905 $ 6,349 65% to 75% 262 180 — 583 651 717 2,393 76% to 80% 9 — — 205 287 606 1,107 Greater than 80% 36 — — 661 244 1,533 2,474 Total commercial mortgage loans 730 848 157 1,932 2,895 5,761 12,323 Agricultural mortgage loans Loan-to-value ratios: Less than 65% 415 343 191 558 1,048 1,820 4,375 65% to 75% 43 — 17 97 100 18 275 76% to 80% — — — — — 3 3 Greater than 80% — — — — 3 — 3 Total agricultural mortgage loans 458 343 208 655 1,151 1,841 4,656 Residential mortgage loans Performing 873 622 168 1,146 1,505 1,554 5,868 Nonperforming — — — 45 22 41 108 Total residential mortgage loans 873 622 168 1,191 1,527 1,595 5,976 Total $ 2,061 $ 1,813 $ 533 $ 3,778 $ 5,573 $ 9,197 $ 22,955 2024 2023 2022 2021 2020 Prior Total (In millions) December 31, 2024 Commercial mortgage loans Loan-to-value ratios: Less than 65% $ 640 $ 199 $ 279 $ 1,850 $ 196 $ 2,846 $ 6,010 65% to 75% 208 — 1,022 713 62 1,171 3,176 76% to 80% — — 117 201 174 602 1,094 Greater than 80% — — 972 388 — 1,690 3,050 Total commercial mortgage loans 848 199 2,390 3,152 432 6,309 13,330 Agricultural mortgage loans Loan-to-value ratios: Less than 65% 410 203 594 1,073 402 1,655 4,337 65% to 75% — 18 80 113 6 20 237 76% to 80% — — — — 1 — 1 Greater than 80% — — — — — 16 16 Total agricultural mortgage loans 410 221 674 1,186 409 1,691 4,591 Residential mortgage loans Performing 586 222 1,268 1,640 146 1,563 5,425 Nonperforming 1 — 44 21 1 51 118 Total residential mortgage loans 587 222 1,312 1,661 147 1,614 5,543 Total $ 1,845 $ 642 $ 4,376 $ 5,999 $ 988 $ 9,614 $ 23,464 153 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 8. Investments (continued) The loan-to-value ratio is a measure commonly used to assess the quality of commercial and agricultural mortgage loans. The loan-to-value ratio compares the amount of the loan to the estimated fair value of the underlying property collateralizing the loan and is commonly expressed as a percentage. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. Performing status is a measure commonly used to assess the quality of residential mortgage loans. A loan is considered performing when the borrower makes consistent and timely payments. The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at: December 31, 2025 2024 Amortized Cost % of Total Amortized Cost % of Total (Dollars in millions) Debt-service coverage ratios: Greater than 1.20x $ 11,157 90.5 % $ 12,033 90.3 % 1.00x - 1.20x 739 6.0 801 6.0 Less than 1.00x 427 3.5 496 3.7 Total $ 12,323 100.0 % $ 13,330 100.0 % The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios less than 1.00 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt-service coverage ratio greater than 1.00 times indicates an excess of net operating income over the debt-service payments. Past Due Mortgage Loans by Portfolio Segment The Company has a high-quality, well-performing mortgage loan portfolio, with 99 % of all mortgage loans classified as performing at both December 31, 2025 and 2024. Delinquency is defined consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days; and agricultural mortgage loans — 90 days. The aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at: December 31, 2025 2024 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Current $ 12,216 $ 4,648 $ 5,865 $ 22,729 $ 13,210 $ 4,566 $ 5,423 $ 23,199 30-59 days past due 47 — 3 50 — — 2 2 60-89 days past due — — 31 31 — — 36 36 90-179 days past due 49 — 28 77 21 9 36 66 180+ days past due 11 8 49 68 99 16 46 161 Total $ 12,323 $ 4,656 $ 5,976 $ 22,955 $ 13,330 $ 4,591 $ 5,543 $ 23,464 154 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 8. 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 (In millions) December 31, 2025 $ 220 $ 5 $ 108 $ 333 December 31, 2024 $ 120 $ 25 $ 118 $ 263 _______________ (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 mortgage loans. Generally, the types of concessions may include interest rate reduction, term extension, principal forgiveness, or a combination of all three. The Company did not have a significant amount of 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 Over 75 % of other invested assets is comprised of freestanding derivatives with positive estimated fair values. See Note 9 for information about freestanding derivatives with positive estimated fair values. Other invested assets also includes the Company’s investment in company-owned life insurance, FHLB stock, leveraged leases and tax credit and renewable energy partnerships. Leveraged Leases 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 seven years. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or nonperforming, which is assessed monthly. Nonperforming rental receivables are generally defined as those that are 90 days or more past due. At both December 31, 2025 and 2024, all leveraged leases were performing. 155 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 8. Investments (continued) Net Unrealized Investment Gains (Losses) Unrealized investment gains (losses) on fixed maturity securities, and the effect on future policy benefits that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI. The components of net unrealized investment gains (losses), included in AOCI, were as follows at: Years Ended December 31, 2025 2024 2023 (In millions) Fixed maturity securities $ ( 4,968 ) $ ( 7,467 ) $ ( 6,119 ) Derivatives 224 469 351 Other ( 9 ) ( 12 ) 2 Subtotal ( 4,753 ) ( 7,010 ) ( 5,766 ) Amounts allocated from: Future policy benefits 525 977 652 Deferred income tax benefit (expense) 888 1,267 1,074 Net unrealized investment gains (losses) $ ( 3,340 ) $ ( 4,766 ) $ ( 4,040 ) The changes in net unrealized investment gains (losses) were as follows: Years Ended December 31, 2025 2024 2023 (In millions) Balance at January 1, $ ( 4,766 ) $ ( 4,040 ) $ ( 5,690 ) Unrealized investment gains (losses) during the year 2,257 ( 1,244 ) 2,353 Unrealized investment gains (losses) relating to: Future policy benefits ( 452 ) 325 ( 265 ) Deferred income tax benefit (expense) ( 379 ) 193 ( 438 ) Balance at December 31, $ ( 3,340 ) $ ( 4,766 ) $ ( 4,040 ) Change in net unrealized investment gains (losses) $ 1,426 $ ( 726 ) $ 1,650 Concentrations of Credit Risk There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at both December 31, 2025 and 2024. Securities Lending Elements of the securities lending program are presented below at: December 31, 2025 2024 (In millions) Securities on loan: (1) Amortized cost $ 3,550 $ 3,582 Estimated fair value $ 3,141 $ 3,127 Cash collateral received from counterparties (2) $ 3,225 $ 3,210 Reinvestment portfolio — estimated fair value $ 3,352 $ 3,217 _______________ (1) Included in fixed maturity securities. (2) Included in payables for collateral under securities loaned and other transactions. 156 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 8. Investments (continued) The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at: December 31, 2025 December 31, 2024 Open (1) 1 Month or Less 1 to 6 Months Total Open (1) 1 Month or Less 1 to 6 Months Total (In millions) U.S. government and agency $ 417 $ 663 $ 1,777 $ 2,857 $ 490 $ 1,467 $ 886 $ 2,843 U.S. corporate 48 256 — 304 — 248 — 248 Foreign corporate 15 47 — 62 — 105 — 105 Foreign government — 2 — 2 — 14 — 14 Total $ 480 $ 968 $ 1,777 $ 3,225 $ 490 $ 1,834 $ 886 $ 3,210 _______________ (1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral. If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized in normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at December 31, 2025 was $ 466 million, primarily comprised of U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement. The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including agency RMBS, ABS, U.S. 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. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company. Invested Assets on Deposit, Held in Trust and Pledged as Collateral Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at: December 31, 2025 2024 (In millions) Invested assets on deposit (regulatory deposits) (1) $ 6,574 $ 6,249 Invested assets held in trust (reinsurance agreements) (2) 7,327 8,274 Invested assets pledged as collateral (3) 10,794 12,471 Total invested assets on deposit, held in trust and pledged as collateral $ 24,695 $ 26,994 _______________ (1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $ 126 million and $ 68 million of the assets on deposit represents restricted cash and cash equivalents at December 31, 2025 and 2024, respectively. (2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $ 331 million and $ 334 million of the assets held in trust balance represents restricted cash and cash equivalents at December 31, 2025 and 2024, respectively. (3) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3) and derivative transactions (see Note 9). See “— Securities Lending” for information regarding securities on loan. In addition, the Company’s investment in FHLB common stock, which is considered restricted until redeemed by the issuer, was $ 218 million and $ 222 million at redemption value at December 31, 2025 and 2024, respectively. 157 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 8. Investments (continued) Collectively Significant Equity Method Investments The Company holds investments in limited partnerships and LLCs consisting of leveraged buy-out funds, private equity funds, joint ventures and other funds. The portion of these investments accounted for under the equity method had a carrying value of $ 4.7 billion at December 31, 2025. The Company’s maximum exposure to loss related to these equity method investments is the carrying value of these investments plus unfunded commitments of $ 1.1 billion at December 31, 2025. The Company’s investments in limited partnerships and LLCs are generally of a passive nature in that the Company does not participate in the management of the entities. As described in Note 1, the Company generally records its share of earnings in its equity method investments using a three-month lag methodology and within net investment income. Aggregate net investment income from these equity method investments exceeded 10% of the Company’s consolidated pre-tax income (loss) for each of the years ended December 31, 2025, 2024 and 2023. This aggregated summarized financial data does not represent the Company’s proportionate share of the assets, liabilities or earnings of such entities. The aggregated summarized financial data presented below reflects the latest available financial information and is as of and for the years ended December 31, 2025, 2024 and 2023. Aggregate total assets of these entities totaled $ 822.5 billion and $ 904.0 billion at December 31, 2025 and 2024, respectively. Aggregate total liabilities of these entities totaled $ 76.2 billion and $ 78.5 billion at December 31, 2025 and 2024, respectively. Aggregate net income (loss) of these entities totaled $ 53.1 billion, $ 60.1 billion and $ 24.8 billion for the years ended December 31, 2025, 2024 and 2023, respectively. Aggregate net income (loss) from the underlying entities in which the Company invests is primarily comprised of investment income, including recurring investment income and realized and unrealized investment gains (losses). Variable Interest Entities A variable interest entity (“VIE”) is a legal entity that does not have sufficient equity at risk to finance its activities or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. The Company enters into various arrangements with VIEs in the normal course of business and has invested in legal entities that are VIEs. VIEs are consolidated when it is determined that the Company is the primary beneficiary. A primary beneficiary is the variable interest holder in a VIE with both (i) the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In addition, the evaluation of whether a legal entity is a VIE and if the Company is a primary beneficiary includes a review of the capital structure of the VIE, the related contractual relationships and terms, the nature of the operations and purpose of the VIE, the nature of the VIE interests issued and the Company’s involvement with the entity. There were no material VIEs for which the Company has concluded that it is the primary beneficiary at either December 31, 2025 or 2024. The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at: December 31, 2025 2024 Carrying Amount Maximum Exposure to Loss Carrying Amount Maximum Exposure to Loss (In millions) Fixed maturity securities $ 13,174 $ 13,780 $ 14,375 $ 15,474 Limited partnerships and LLCs 4,288 5,244 4,236 5,278 Total $ 17,462 $ 19,024 $ 18,611 $ 20,752 158 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 8. Investments (continued) The Company’s investments in unconsolidated VIEs are described below. Fixed Maturity Securities The Company invests in U.S. corporate bonds, foreign corporate bonds and Structured Securities issued by VIEs. The Company is not obligated to provide any financial or other support to these VIEs, other than the original investment. The Company’s involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer, or investment manager, which are generally viewed as having the power to direct the activities that most significantly impact the economic performance of the VIE, nor does the Company function in any of these roles. The Company does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity; as a result, the Company has determined it is not the primary beneficiary, or consolidator, of the VIE. The Company’s maximum exposure to loss on these fixed maturity securities is limited to the amortized cost of these investments. See “— Fixed Maturity Securities Available-For-Sale” for information on these securities. Limited Partnerships and LLCs The Company holds investments in certain limited partnerships and LLCs which are VIEs. These ventures include limited partnerships, LLCs, private equity funds, and, to a lesser extent, tax credit and renewable energy partnerships. The Company is not considered the primary beneficiary, or consolidator, when its involvement takes the form of a limited partner interest and is restricted to a role of a passive investor, as a limited partner’s interest does not provide the Company with any substantive kick-out or participating rights, nor does it provide the Company with the power to direct the activities of the fund. The Company’s maximum exposure to loss on these investments is limited to: (i) the amount invested in debt or equity of the VIE and (ii) commitments to the VIE, as described in Note 17. Net Investment Income The components of net investment income were as follows: Years Ended December 31, 2025 2024 2023 (In millions) Investment income: Fixed maturity securities $ 3,706 $ 3,746 $ 3,516 Trading securities (1) 23 — — Equity securities 2 3 3 Mortgage loans 1,024 1,002 958 Policy loans 71 69 67 Limited partnerships and LLCs (2) 373 357 168 Cash, cash equivalents and short-term investments 271 286 225 Other 113 107 87 Total investment income 5,583 5,570 5,024 Less: Investment expenses 339 348 360 Net investment income $ 5,244 $ 5,222 $ 4,664 _______________ (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. 159 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 8. Investments (continued) Net Investment Gains (Losses) Components of Net Investment Gains (Losses) The components of net investment gains (losses) were as follows: Years Ended December 31, 2025 2024 2023 (In millions) Fixed maturity securities $ ( 88 ) $ ( 245 ) $ ( 224 ) Equity securities 4 ( 6 ) 5 Mortgage loans ( 83 ) ( 56 ) ( 24 ) Limited partnerships and LLCs 2 ( 2 ) ( 1 ) Other (1) 68 14 ( 2 ) Total net investment gains (losses) (2) $ ( 97 ) $ ( 295 ) $ ( 246 ) _______________ (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 Investment gains and losses on sales of securities are determined on a specific identification basis. Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows: Years Ended December 31, 2025 2024 2023 (In millions) Proceeds $ 1,665 $ 3,520 $ 2,301 Gross investment gains $ 8 $ 20 $ 15 Gross investment losses ( 79 ) ( 193 ) ( 216 ) Net investment gains (losses) $ ( 71 ) $ ( 173 ) $ ( 201 ) 9. Derivatives 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 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. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). 160 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 9. Derivatives (continued) Interest Rate Derivatives The Company uses derivatives to manage its exposure to changes in interest rate risk from its product liabilities and invested assets. The most significant types of derivative instruments used for hedging interest rate risk are as follows: Interest rate swaps: The Company uses interest rate swaps to manage interest rate risk in both qualified cash flow and non-qualifying hedging relationships. In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. Interest rate swaptions: The Company uses interest rate swaptions to manage interest rate risk in non-qualifying hedging relationships. A swaption is an option to enter into a swap with a forward starting effective date. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. Interest rate swaptions are included in interest rate options. Interest rate forwards: The Company uses interest rate forwards to manage interest rate risk in both qualified cash flow and non-qualifying hedging relationships. An interest rate forward is an agreement between parties to exchange a future settlement amount based on a predetermined notional amount and forward interest rate. Foreign Currency Exchange Rate Derivatives Foreign currency swaps: The Company uses foreign currency swaps to convert foreign currency denominated cash flows to U.S. dollars to reduce cash flow fluctuations due to changes in currency exchange rates. Foreign currency swaps are used in cash flow and non-qualifying hedging relationships. Foreign currency forwards: The Company uses foreign currency forwards to hedge currency exposure on its invested assets. Foreign currency forwards are used in non-qualifying hedging relationships. Credit Derivatives Credit default swaps: The Company uses credit default swaps to create synthetic credit investments to replicate credit exposure that is more economically attractive than what is available in the market or otherwise unavailable (written credit protection). Credit default swaps are used in non-qualifying hedging relationships. Credit default swaptions: The Company uses credit default swaptions to synthetically create investments that are either more expensive to acquire or otherwise unavailable in the cash markets. Swaptions are used to create callable bonds from replication synthetic asset transaction (“RSAT”) positions. This enhances the income of the RSAT program through earned premiums while not changing the credit profile of the RSATs. Credit default swaptions are used in non-qualifying hedging relationships. Equity Market Derivatives The Company uses derivatives to manage its exposure to equity markets from its product liabilities. The most significant types of derivative instruments used for hedging equity market risk are as follows: Equity total return swaps: The Company uses equity total return swaps in non-qualifying hedge relationships to manage equity risks related to variable and index-linked annuities. Total return swaps are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and a floating rate, calculated by reference to an agreed notional amount. Equity index options: The Company uses equity index options to manage equity risks related to variable and index-linked annuities in non-qualifying hedging relationships. In an equity index option transaction, the Company enters into contracts to buy or sell the equity index within a limited time at a contracted price. In certain instances, the Company may enter into a combination of transactions to hedge adverse changes in equity indices within a pre-determined range through the purchase and sale of options. 161 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 9. Derivatives (continued) Primary Risks Managed by Derivatives The primary underlying risk exposure, gross notional amount and estimated fair value of derivatives, excluding embedded derivatives, held were as follows at: December 31, 2025 2024 Primary Underlying Risk Exposure Gross Notional Amount Estimated Fair Value Gross Notional Amount Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate swaps Interest rate $ 500 $ — $ 4 $ 500 $ 9 $ — Foreign currency swaps Foreign currency exchange rate 3,774 272 84 3,823 439 25 Total qualifying hedges 4,274 272 88 4,323 448 25 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 18,366 152 253 69,303 131 444 Interest rate floors Interest rate 8,000 1 48 8,000 1 30 Interest rate caps Interest rate 6,100 5 16 7,850 14 14 Interest rate futures Interest rate — — — 171 — — Interest rate options Interest rate 26,800 12 444 23,060 11 371 Interest rate forwards Interest rate 23,598 127 1,317 16,352 121 1,876 Foreign currency swaps Foreign currency exchange rate 589 75 4 685 113 — Foreign currency forwards Foreign currency exchange rate 420 3 — 386 12 — Credit default swaps — written Credit 468 11 — 780 19 — Equity futures Equity market 1,414 6 4 316 — 1 Equity index options Equity market 69,495 4,530 1,362 39,897 1,722 1,041 Equity total return swaps Equity market 145,209 1,585 1,698 106,301 1,543 1,446 Total non-designated or non-qualifying derivatives 300,459 6,507 5,146 273,101 3,687 5,223 Total $ 304,733 $ 6,779 $ 5,234 $ 277,424 $ 4,135 $ 5,248 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 (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ 3 $ — $ 3 $ 4 $ ( 12 ) Foreign currency exchange rate — — 43 — ( 227 ) Total cash flow hedges 3 — 46 4 ( 239 ) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate ( 181 ) — — — — Foreign currency exchange rate ( 56 ) 6 — — — Credit 11 — — — — Equity market 1,515 — — — — Embedded ( 3,090 ) — — — — Total non-qualifying hedges ( 1,801 ) 6 — — — Total $ ( 1,798 ) $ 6 $ 46 $ 4 $ ( 239 ) 162 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 9. 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) Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ 2 $ — $ 3 $ 8 $ 9 Foreign currency exchange rate 13 ( 10 ) 51 — 127 Total cash flow hedges 15 ( 10 ) 54 8 136 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate ( 1,690 ) — — — — Foreign currency exchange rate 69 ( 9 ) — — — Credit 14 — — — — Equity market 1,894 — — — — Embedded ( 3,951 ) — — — — Total non-qualifying hedges ( 3,664 ) ( 9 ) — — — Total $ ( 3,649 ) $ ( 19 ) $ 54 $ 8 $ 136 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) Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate $ 1 $ — $ 3 $ — $ ( 1 ) Foreign currency exchange rate 7 ( 8 ) 52 — ( 275 ) Total cash flow hedges 8 ( 8 ) 55 — ( 276 ) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate ( 384 ) — — — — Foreign currency exchange rate ( 15 ) ( 13 ) — — — Credit 32 — — — — Equity market 570 — — — — Embedded ( 4,097 ) — — — — Total non-qualifying hedges ( 3,894 ) ( 13 ) — — — Total $ ( 3,886 ) $ ( 21 ) $ 55 $ — $ ( 276 ) 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. 163 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 9. Derivatives (continued) Credit Derivatives In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation. The estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps were as follows at: December 31, 2025 2024 Rating Agency Designation of Referenced Credit Obligations (1) Estimated Fair Value of Credit Default Swaps Maximum Amount of Future Payments under Credit Default Swaps Weighted Average Years to Maturity (2) Estimated Fair Value of Credit Default Swaps Maximum Amount of Future Payments under Credit Default Swaps Weighted Average Years to Maturity (2) (Dollars in millions) Aaa/Aa/A $ 2 $ 94 1.8 $ 2 $ 100 2.7 Baa 8 350 5.0 7 300 4.5 Ba 1 24 1.0 10 376 4.8 Caa and Lower — — 0.0 — 4 1.0 Total $ 11 $ 468 4.1 $ 19 $ 780 4.4 _______________ (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. (2) The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts. Counterparty Credit Risk The Company may be exposed to credit-related losses in the event of counterparty nonperformance on derivative instruments. Generally, the credit exposure is the fair value at the reporting date less any collateral received from the counterparty. The Company manages its credit risk by: (i) entering into derivative transactions with creditworthy counterparties governed by master netting agreements; (ii) trading through regulated exchanges and central clearing counterparties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review. See Note 10 for a description of the impact of credit risk on the valuation of derivatives. 164 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 9. 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 (In millions) December 31, 2025 Derivative assets $ 6,576 $ ( 3,861 ) $ ( 1,382 ) $ 1,333 $ ( 1,331 ) $ 2 Derivative liabilities $ 5,099 $ ( 3,861 ) $ — $ 1,238 $ ( 1,238 ) $ — December 31, 2024 Derivative assets $ 4,140 $ ( 3,039 ) $ ( 540 ) $ 561 $ ( 559 ) $ 2 Derivative liabilities $ 5,353 $ ( 3,039 ) $ — $ 2,314 $ ( 2,306 ) $ 8 _______________ (1) Represents amounts subject to an enforceable master netting agreement or similar agreement. (2) The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement. (3) Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received. The Company’s collateral arrangements generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the amount owed by that counterparty reaches a minimum transfer amount. 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. 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: December 31, 2025 2024 (In millions) Estimated fair value of derivatives in a net liability position (1) $ 1,238 $ 2,314 Estimated fair value of collateral provided (2): Fixed maturity securities $ 3,685 $ 4,883 _______________ (1) After taking into consideration the existence of netting agreements. (2) Substantially all of the Company’s collateral arrangements provide for daily posting of collateral for the full value of the derivative contract. As a result, if the credit-contingent provisions of derivative contracts in a net liability position were triggered, minimal additional assets would be required to be posted as collateral or needed to settle the instruments immediately. Additionally, the Company is required to pledge initial margin for certain new OTC-bilateral derivative transactions to third-party custodians. 165 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 10. Fair Value When developing estimated fair values, the Company considers three broad valuation techniques: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given what is being measured and the availability of sufficient inputs, giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. The Company defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities. Level 2 Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. 166 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 10. Fair Value (continued) Recurring Fair Value Measurements The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented in the tables below. Investments that do not have a readily determinable fair value and are measured at net asset value (or equivalent) as a practical expedient to estimated fair value are excluded from the fair value hierarchy. December 31, 2025 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated Fair Value (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 38,267 $ 642 $ 38,909 Foreign corporate — 11,339 158 11,497 RMBS — 8,508 24 8,532 U.S. government and agency 2,450 4,261 — 6,711 ABS — 5,814 245 6,059 CMBS — 5,870 — 5,870 State and political subdivision — 3,494 — 3,494 Foreign government — 918 24 942 Total fixed maturity securities 2,450 78,471 1,093 82,014 Trading securities 87 419 — 506 Equity securities 68 5 6 79 Short-term investments 918 273 6 1,197 Derivative assets: (1) Interest rate — 297 — 297 Foreign currency exchange rate — 346 4 350 Credit — 9 2 11 Equity market 6 6,115 — 6,121 Total derivative assets 6 6,767 6 6,779 Embedded derivatives on index-linked annuities (2) — — 79 79 Market risk benefit assets — — 1,060 1,060 Separate account assets 10 85,518 — 85,528 Total assets $ 3,539 $ 171,453 $ 2,250 $ 177,242 Liabilities Market risk benefit liabilities $ — $ — $ 8,063 $ 8,063 Derivative liabilities: (1) Interest rate — 2,082 — 2,082 Foreign currency exchange rate — 88 — 88 Equity market 4 3,060 — 3,064 Total derivative liabilities 4 5,230 — 5,234 Embedded derivatives on index-linked annuities (2) — — 12,406 12,406 Total liabilities $ 4 $ 5,230 $ 20,469 $ 25,703 167 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 10. Fair Value (continued) December 31, 2024 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated Fair Value (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 36,427 $ 696 $ 37,123 Foreign corporate — 11,434 396 11,830 RMBS — 7,270 17 7,287 U.S. government and agency 2,731 4,016 — 6,747 ABS — 5,990 322 6,312 CMBS — 6,330 26 6,356 State and political subdivision — 3,441 — 3,441 Foreign government — 938 21 959 Total fixed maturity securities 2,731 75,846 1,478 80,055 Trading securities — — — — Equity securities 56 6 15 77 Short-term investments 1,414 452 2 1,868 Derivative assets: (1) Interest rate — 287 — 287 Foreign currency exchange rate — 557 7 564 Credit — 17 2 19 Equity market — 3,265 — 3,265 Total derivative assets — 4,126 9 4,135 Embedded derivatives on index-linked annuities (2) — — 47 47 Market risk benefit assets — — 1,092 1,092 Separate account assets 3 85,633 — 85,636 Total assets $ 4,204 $ 166,063 $ 2,643 $ 172,910 Liabilities Market risk benefit liabilities $ — $ — $ 8,329 $ 8,329 Derivative liabilities: (1) Interest rate — 2,735 — 2,735 Foreign currency exchange rate — 25 — 25 Equity market 1 2,487 — 2,488 Total derivative liabilities 1 5,247 — 5,248 Embedded derivatives on index-linked annuities (2) — — 11,540 11,540 Total liabilities $ 1 $ 5,247 $ 19,869 $ 25,117 _______________ (1) Derivative assets are reported in other invested assets and derivative liabilities are reported in other liabilities. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets. (2) Embedded derivative assets on index-linked annuities are reported in premiums and other receivables. Embedded derivative liabilities on index-linked annuities are reported in policyholder account balances. Valuation Controls and Procedures The Company monitors and provides oversight of valuation controls and policies for securities, mortgage loans and derivatives, which are primarily executed by its valuation service providers. The valuation methodologies used to determine fair values prioritize the use of observable market prices and market-based parameters and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. The valuation methodologies for securities, mortgage loans and derivatives are reviewed on an ongoing basis and revised when necessary. In addition, the Chief Accounting Officer periodically reports to the Audit Committee of BHF’s Board of Directors regarding compliance with fair value accounting standards. 168 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 10. Fair Value (continued) The fair value of financial assets and financial liabilities is based on quoted market prices, where available. Prices received are assessed to determine if they represent a reasonable estimate of fair value. Several controls are performed, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. Independent non-binding broker quotes, also referred to herein as “consensus pricing,” are used for a non-significant portion of the portfolio. Prices received from independent brokers are assessed to determine if they represent a reasonable estimate of fair value by considering such pricing relative to the current market dynamics and current pricing for similar financial instruments. A formal process is also applied to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained. If obtaining an independent non-binding broker quotation is unsuccessful, the last available price will be used. Additional controls are performed, such as balance sheet analytics to assess reasonableness of period-to-period pricing changes, including any price adjustments. Price adjustments are applied if prices or quotes received from independent pricing services or brokers are not considered reflective of market activity or representative of estimated fair value. The Company did not have significant price adjustments during the year ended December 31, 2025. Determination of Fair Value Fixed Maturity Securities 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 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. U.S. corporate and foreign corporate securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark yields, spreads off benchmark yields, new issuances, issuer rating, trades of identical or comparable securities, or duration. Privately-placed securities are valued using the additional key inputs: market yield curve, call provisions, observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer, and delta spread adjustments to reflect specific credit-related issues. U.S. government and agency, state and political subdivision and foreign government securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark U.S. Treasury yield or other yields, spread off the U.S. Treasury yield curve for the identical security, issuer ratings and issuer spreads, broker-dealer quotes, and comparable securities that are actively traded. Structured Securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, ratings, geographic region, weighted average coupon and weighted average maturity, average delinquency rates and debt-service coverage ratios. Other issuance-specific information is also used, including, but not limited to, collateral type, structure of the security, vintage of the loans, payment terms of the underlying asset, payment priority within tranche, and deal performance. Equity Securities and Short-term Investments The fair value for actively traded equity securities and short-term investments are determined using quoted market prices and are classified as Level 1 assets. For financial instruments classified as Level 2 assets, fair values are determined using a market approach and are valued based on a variety of observable inputs as described below. Equity securities and short-term investments: Fair value is determined using third-party commercial pricing services, with the primary input being quoted prices in markets that are not active. 169 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 10. Fair Value (continued) Derivatives 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. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models which are based on market standard valuation methodologies and a variety of observable inputs. The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments. Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income. The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period. Market Risk Benefits MRBs principally include guaranteed minimum benefits on variable annuity contracts including benefits reinsured related to these guarantees. The estimated fair value of variable annuity guarantees accounted for as MRBs is determined based on the present value of projected future benefits less the present value of projected future fees attributable to the guarantees. At policy inception, the Company determines an attributed fee ratio by solving for a percentage of projected future rider fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. To the extent the rider fees are insufficient, the Company may also include fees related to mortality and expense charges in the attributed fee ratio, provided the total fees included in the calculation do not exceed total contract fees and assessments collected from the contract holder. Any additional fees not included in the attributed fee ratio are considered revenue and reported in universal life and investment-type product policy fees. The attributed fee ratio is not updated in subsequent periods. The Company updates the estimated fair value of variable annuity guarantees in subsequent periods by projecting future benefits using capital markets inputs and actuarial assumptions including expectations of policyholder behavior. A risk neutral valuation methodology is used to project the cash flows from the guarantees under multiple capital markets scenarios. The reported estimated fair value is then determined by taking the present value of these cash flows using a discount rate that incorporates a spread over the risk-free rate to reflect the Company’s nonperformance risk and adding a risk margin. 170 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 10. Fair Value (continued) The valuation of MRBs includes an adjustment for the risk that the Company fails to satisfy its obligations, which is referred to as nonperformance risk. The nonperformance risk adjustment is captured as an additional spread applied to the risk-free rate in determining the rate to discount the cash flows of the liability. The spread over the risk-free rate is based on the Company’s creditworthiness taking into consideration publicly available information relating to spreads in the secondary market for Brighthouse Financial’s debt. These observable spreads are then adjusted, as necessary, to reflect the financial strength ratings of the issuing insurance subsidiaries as compared to the credit rating of Brighthouse Financial. Risk margins are established to capture the non-capital markets risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties in certain actuarial assumptions. The establishment of risk margins requires the use of significant actuarial judgment, including assumptions of the amount needed to cover the guarantees. Actuarial assumptions are reviewed at least annually, and if they change significantly, the estimated fair value is adjusted through net income. Capital market inputs used in the measurement of variable annuity guarantees are updated quarterly through net income, except for the change attributable to the Company’s nonperformance risk, which is reported in OCI. Embedded Derivatives Embedded derivatives include crediting rates associated with index-linked annuity contracts. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. The crediting rates associated with these features are embedded derivatives which are measured at estimated fair value separately from the host fixed annuity contract. These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets. The estimated fair value of crediting rates associated with index-linked annuities is determined using a combination of an option pricing model and an option-budget approach. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk. Actuarial assumptions including policyholder behavior and expectations for renewals at the end of the term period are reviewed at least annually, and if they change significantly, the estimated fair value is adjusted through net income. Capital market inputs used in the measurement of crediting rate embedded derivatives are updated quarterly through net income. Transfers Into or Out of Level 3: Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable. 171 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 10. Fair Value (continued) Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) 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, 2025 December 31, 2024 Impact of Increase in Input on Estimated Fair Value Valuation Techniques Significant Unobservable Inputs Range Range Market Risk Benefits Variable annuity guaranteed minimum benefits • Discounted cash flows • Mortality rates 0.04 % - 12.90 % 0.04 % - 12.90 % Decrease (1) • Lapse rates 1.00 % - 15.90 % 1.00 % - 20.20 % Decrease (2) • Utilization rates 0.00 % - 25.00 % 0.00 % - 25.00 % Increase (3) • Withdrawal rates 0.00 % - 10.00 % 0.00 % - 10.00 % (4) • Long-term equity volatilities 11.56 % - 33.62 % 12.22 % - 37.04 % Increase (5) • Nonperformance risk spread 0.45 % - 1.02 % 0.20 % - 1.19 % Decrease (6) Embedded Derivatives Registered index-linked annuity crediting rates • Option pricing techniques • Mortality rates 0.03 % - 7.86 % 0.03 % - 7.86 % Decrease (1) • Lapse rates 0.40 % - 75.00 % 1.00 % - 62.30 % Decrease (2) • Withdrawal rates 0.50 % - 14.90 % 0.50 % - 13.00 % (4) • Nonperformance risk spread 0.37 % - 1.80 % 0.30 % - 1.63 % Decrease (6) _______________ (1) Mortality rates vary by age and by demographic characteristics such as gender. The range shown reflects the mortality rate for policyholders between 35 and 90 years old. Mortality rate assumptions are set based on company experience and include an assumption for mortality improvement. (2) The lapse rate range reflects base lapse rates for major product categories for duration 1-20. Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. For variable annuity guarantees, a dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in-the-money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. (3) The utilization rate assumption for variable annuity guarantees estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible in a given year. The range shown represents the floor and cap of the GMIB dynamic election rates across varying levels of in-the-money. For lifetime withdrawal guarantee riders, the assumption is that everyone will begin withdrawals once account value reaches zero which is equivalent to a 100% utilization rate. Utilization rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. (4) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For variable annuity GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For variable annuity GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (5) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing MRBs. 172 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 10. Fair Value (continued) (6) Nonperformance risk spread varies by duration. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the MRB or embedded derivative. The Company does not develop unobservable inputs used in measuring fair value for all other assets and liabilities classified within Level 3; therefore, these are not included in the table above. The other Level 3 assets and liabilities primarily included fixed maturity securities and derivatives. For fixed maturity securities valued based on non-binding broker quotes, an increase (decrease) in credit spreads would result in a (lower) higher fair value. For derivatives valued based on third-party pricing models, an increase (decrease) in credit spreads would generally result in a (lower) higher fair value. 173 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 10. Fair Value (continued) The changes in assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (excluding MRBs disclosed in Note 4) were summarized as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Corporate (1) Structured Securities Foreign Government Equity Securities Short-term Investments Net Derivatives (2) Embedded Derivatives on Index-Linked Annuities (In millions) Balance, January 1, 2024 $ 1,320 $ 380 $ 36 $ 25 $ — $ 18 $ ( 8,186 ) Total realized/unrealized gains (losses) included in net income (loss) (3) (4) ( 67 ) 1 — ( 10 ) — 1 ( 3,951 ) Total realized/unrealized gains (losses) included in AOCI 2 3 — — — — — Purchases (5) 323 137 — — 2 — — Sales (5) ( 239 ) ( 87 ) — — — — — Issuances (5) — — — — — — — Settlements (5) — — — — — ( 4 ) 644 Transfers into Level 3 (6) 53 — — — — — — Transfers out of Level 3 (6) ( 300 ) ( 69 ) ( 15 ) — — ( 6 ) — Balance, December 31, 2024 1,092 365 21 15 2 9 ( 11,493 ) Total realized/unrealized gains (losses) included in net income (loss) (3) (4) ( 13 ) 3 — ( 1 ) — ( 1 ) ( 3,090 ) Total realized/unrealized gains (losses) included in AOCI 20 ( 7 ) 3 — — ( 1 ) — Purchases (5) 292 78 — — 6 — — Sales (5) ( 236 ) ( 109 ) — ( 8 ) ( 2 ) — — Issuances (5) — — — — — — — Settlements (5) — — — — — — 2,256 Transfers into Level 3 (6) 7 — — — — — — Transfers out of Level 3 (6) ( 362 ) ( 61 ) — — — ( 1 ) — Balance, December 31, 2025 $ 800 $ 269 $ 24 $ 6 $ 6 $ 6 $ ( 12,327 ) Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2023 (7) $ ( 11 ) $ — $ — $ ( 2 ) $ — $ ( 5 ) $ ( 4,513 ) Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2024 (7) $ ( 59 ) $ — $ — $ — $ — $ 1 $ ( 4,687 ) Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2025 (7) $ ( 9 ) $ — $ — $ — $ — $ ( 1 ) $ ( 4,282 ) Changes in unrealized gains (losses) included in OCI for the instruments still held as of December 31, 2023 (7) $ 11 $ 4 $ 3 $ — $ — $ ( 3 ) $ — Changes in unrealized gains (losses) included in OCI for the instruments still held as of December 31, 2024 (7) $ ( 33 ) $ — $ — $ — $ — $ — $ — Changes in unrealized gains (losses) included in OCI for the instruments still held as of December 31, 2025 (7) $ 17 $ ( 7 ) $ 3 $ — $ — $ — $ — Gains (Losses) Data for the year ended December 31, 2023: Total realized/unrealized gains (losses) included in net income (loss) (3) (4) $ ( 11 ) $ — $ — $ ( 3 ) $ — $ ( 6 ) $ ( 4,097 ) Total realized/unrealized gains (losses) included in AOCI $ 28 $ 5 $ 3 $ — $ — $ ( 3 ) $ — _______________ (1) Comprised of U.S. and foreign corporate securities. (2) Freestanding derivative assets and liabilities are reported net for purposes of the rollforward. 174 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 10. Fair Value (continued) (3) Amortization of premium/accretion of discount is included in net investment income. Changes in the allowance for credit losses and direct write-offs are charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). (4) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. (5) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. (6) Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and out of Level 3 in the same period are excluded from the rollforward. (7) Changes in unrealized gains (losses) included in net income (loss) for fixed maturities are reported in either net investment income or net investment gains (losses). Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). Fair Value of Financial Instruments Carried at Other Than Fair Value The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income and payables for collateral under securities loaned and other transactions. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2, approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the tables below are not considered financial instruments subject to this disclosure. The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: December 31, 2025 Fair Value Hierarchy Carrying Value Level 1 Level 2 Level 3 Total Estimated Fair Value (In millions) Assets Mortgage loans $ 22,755 $ — $ — $ 21,732 $ 21,732 Policy loans $ 1,450 $ — $ 557 $ 994 $ 1,551 Other invested assets $ 227 $ — $ 217 $ 10 $ 227 Premiums, reinsurance and other receivables $ 8,145 $ — $ 152 $ 8,045 $ 8,197 Liabilities Policyholder account balances $ 28,788 $ — $ — $ 28,728 $ 28,728 Long-term debt $ 3,155 $ — $ 2,633 $ — $ 2,633 Other liabilities $ 1,291 $ — $ 683 $ 608 $ 1,291 Separate account liabilities $ 1,263 $ — $ 1,263 $ — $ 1,263 175 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 10. Fair Value (continued) December 31, 2024 Fair Value Hierarchy Carrying Value Level 1 Level 2 Level 3 Total Estimated Fair Value (In millions) Assets Mortgage loans $ 23,286 $ — $ — $ 21,373 $ 21,373 Policy loans $ 2,024 $ — $ 1,161 $ 943 $ 2,104 Other invested assets $ 233 $ — $ 222 $ 11 $ 233 Premiums, reinsurance and other receivables $ 8,527 $ — $ 55 $ 9,222 $ 9,277 Liabilities Policyholder account balances $ 31,928 $ — $ — $ 31,563 $ 31,563 Long-term debt $ 3,155 $ — $ 2,787 $ — $ 2,787 Other liabilities $ 1,338 $ — $ 691 $ 647 $ 1,338 Separate account liabilities $ 1,246 $ — $ 1,246 $ — $ 1,246 11. Long-term Debt Long-term debt outstanding was as follows at: December 31, 2025 2024 Stated Interest Rate Maturity Face Value Carrying Value Face Value Carrying Value (In millions) Senior notes (1) 3.700 % 2027 $ 757 $ 757 $ 757 $ 756 Senior notes (1) 5.625 % 2030 615 615 615 615 Senior notes (1) 4.700 % 2047 1,014 1,002 1,014 1,002 Senior notes (1) 3.850 % 2051 400 397 400 397 Junior subordinated debentures (1) 6.250 % 2058 375 364 375 364 Other long-term debt (2) 7.028 % 2030 20 20 21 21 Total long-term debt (3) $ 3,181 $ 3,155 $ 3,182 $ 3,155 _______________ (1) Interest on senior notes is payable semi-annually. Interest on junior subordinated debentures is payable quarterly subject to BHF’s right to defer interest payments in accordance with the terms of the debentures. (2) Represents non-recourse debt for which creditors have no access, subject to customary exceptions, to the general assets of the Company other than recourse to certain investment companies. (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, 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. Interest expense related to long-term debt of $ 152 million, $ 152 million and $ 153 million for the years ended December 31, 2025, 2024 and 2023, respectively, is included in other expenses. 176 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 11. Long-term Debt (continued) The Company’s debt instruments and credit and committed facilities contain certain administrative, reporting and legal covenants. Additionally, the Revolving Credit Facility (as defined below) contain financial covenants, including requirements to maintain a specified minimum adjusted consolidated net worth, to maintain a ratio of total indebtedness to total capitalization not in excess of a specified percentage and that place limitations on the dollar amount of indebtedness that may be incurred by the Company’ subsidiaries. At December 31, 2025, the Company was in compliance with these financial covenants. Credit Facilities 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 Reinsurance Financing Arrangement Brighthouse Reinsurance Company of Delaware (“BRCD”) maintains a $ 15.0 billion financing arrangement with a pool of highly rated third-party reinsurers consisting of credit-linked notes that each mature in 2039. At December 31, 2025, there were no borrowings and there was $ 15.0 billion of funding available under this financing arrangement. For the years ended December 31, 2025, 2024 and 2023, the Company recognized commitment fees of $ 22 million, $ 21 million and $ 21 million, respectively, in other expenses associated with this financing arrangement. Repurchase Facilities At December 31, 2025, Brighthouse Life Insurance Company maintains secured committed repurchase facilities (the “Repurchase Facilities”) with terms of up to three years under which Brighthouse Life Insurance Company may enter into repurchase transactions in an aggregate amount up to $ 2.5 billion. Under the Repurchase Facilities, Brighthouse Life Insurance Company may sell certain eligible securities at a purchase price based on the market value of the securities less an applicable margin based on the types of securities sold, with a concurrent agreement to repurchase such securities at a predetermined future date (up to three months) and at a price which represents the original purchase price plus interest. At December 31, 2025, there were no borrowings under the Repurchase Facilities. 12. Equity Preferred Stock Preferred stock shares authorized, issued and outstanding were as follows at: December 31, 2025 2024 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 23,000 23,000 23,000 23,000 23,000 23,000 4.625 % Non-Cumulative Preferred Stock, Series D 14,000 14,000 14,000 14,000 14,000 14,000 Not designated 99,929,900 — — 99,929,900 — — 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. Dividends, if declared, will be payable commencing on March 25, 2022 and will accrue and be payable quarterly, in arrears, at an annual rate of 4.625 % on the stated amount per share. 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. 177 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 12. 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. Dividends, if declared, will accrue and be payable quarterly, in arrears, at an annual rate of 5.375 % on the stated amount per share. In connection with the issuance of the Series C Depositary Shares and the underlying Series C Preferred Stock, BHF incurred $ 17 million of issuance costs, which have been recorded as a reduction of additional paid-in capital. In May 2020, BHF issued depositary shares (the “Series B Depositary Shares”), each representing a 1/1,000th ownership interest in a share of its perpetual 6.750 % non-cumulative preferred stock, Series B (the “Series B Preferred Stock”) and in the aggregate representing 16,100 shares of Series B Preferred Stock, with a stated amount of $ 25,000 per share, for aggregate net cash proceeds of $ 390 million. Dividends, if declared, will accrue and be payable quarterly, in arrears, at an annual rate of 6.750 % on the stated amount per share. In connection with the issuance of the Series B Depositary Shares and the underlying Series B Preferred Stock, BHF incurred $ 13 million of issuance costs, which have been recorded as a reduction of additional paid-in capital. In March 2019, BHF issued depositary shares, each representing a 1/1,000th ownership interest in a share of BHF’s perpetual 6.600 % Series A non-cumulative preferred stock (the “Series A Preferred Stock”) and in the aggregate representing 17,000 shares of Series A Preferred Stock, with a stated amount of $ 25,000 per share, for aggregate net cash proceeds of $ 412 million. Dividends, if declared, will accrue and be payable quarterly, in arrears, at an annual rate of 6.600 % on the stated amount per share. 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. 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. The Preferred Stock ranks senior to common stock with respect to the payment of dividends and distributions of assets upon liquidation, dissolution or winding-up of the Company. Holders of the Preferred Stock are not entitled to any other amounts from the Company after they have received their full liquidation preference and do not have voting rights except in certain limited circumstances, including where dividends have not been paid in full for at least six dividend payment periods, whether or not such periods are consecutive. In such circumstances, the holders of the Preferred Stock, and, in turn, the underlying depositary shares, will have certain voting rights with respect to the election of additional directors to the BHF Board of Directors, as provided in the Certificate of Designations for each series of Preferred Stock. Each series of Preferred Stock has a stated amount of $ 25,000 per share, is perpetual and has no maturity date. Dividends are payable, if declared, quarterly in arrears on the 25th day of March, June, September and December of each year at a specified annual rate on the stated amount per share applicable to each particular series. Dividends are recorded when declared. No dividends may be paid or declared on BHF’s common stock and BHF may not purchase, redeem, or otherwise acquire its common stock unless the full dividends for the latest completed dividend period on all outstanding Preferred Stock have been declared and either paid or a sum sufficient for the payment thereof has been set aside. The Preferred Stock is not convertible into, or exchangeable for, shares of any other class or series of stock or other securities of the Company or its subsidiaries and is not subject to any mandatory redemption, sinking fund, retirement fund, purchase fund or similar provisions. Each series of the Preferred Stock is redeemable at the Company’s option in whole or in part on or after a specified optional redemption date applicable to that series (March 25, 2024 for the Series A Preferred Stock, June 25, 2025 for the Series B Preferred Stock, December 25, 2025 for the Series C Preferred Stock and December 25, 2026 for the Series D Preferred Stock) at a redemption price equal to $ 25,000 per share, plus any accrued but unpaid dividends. 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. 178 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 12. Equity (continued) The per share and aggregate dividends declared for BHF’s preferred stock by series were as follows: Years Ended December 31, 2025 2024 2023 Series 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 30 D $ 1,156.24 16 $ 1,156.24 16 $ 1,156.24 16 Total $ 102 $ 102 $ 102 See Note 18 for information relating to preferred dividends declared subsequent to December 31, 2025 . Common Stock Changes in common shares outstanding were as follows: Years Ended December 31, 2025 2024 2023 Shares outstanding at beginning of year 58,629,049 63,503,355 68,278,068 Shares issued 601,641 661,758 665,146 Shares repurchased (1) ( 2,059,473 ) ( 5,536,064 ) ( 5,439,859 ) Shares outstanding at end of year 57,171,217 58,629,049 63,503,355 _______________ (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. 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. Repurchases under the November 16, 2023 authorization may be made through open market purchases, including pursuant to a Rule 10b5-1 plan or pursuant to accelerated stock repurchase plans, or through privately negotiated transactions, from time to time at management’s discretion in accordance with applicable legal requirements. During the years ended December 31, 2025, 2024 and 2023, BHF repurchased 1,844,396 shares, 5,294,200 shares and 5,195,832 shares, respectively, of its common stock through open market purchases, pursuant to Rule 10b5-1 plans, for $ 102 million, $ 250 million and $ 250 million, respectively. 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, 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. 179 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 12. Equity (continued) Unless otherwise noted, all share-based compensation is measured at fair value as of the grant date. The Company recognizes compensation expense related to share-based awards based on the number of awards expected to vest, which for some award types represent the awards granted less expected forfeitures over the life of the award, as estimated at the date of grant and actual forfeitures for other award types. Unless a material deviation from the assumed forfeiture rate is observed during the term in which the awards are expensed, the Company recognizes any adjustment necessary to reflect differences in actual experience in the period the award becomes payable or exercisable. Compensation expense related to share-based awards, which is included in other expenses, is principally related to the issuance of restricted stock units and performance share units with other costs incurred relating to stock options. The Company grants the majority of each year’s awards in the first quarter of the year. Compensation Expense Related to Share-Based Compensation The following table presents total share-based compensation expense: Years Ended December 31, 2025 2024 2023 (In millions) RSUs $ 20 $ 14 $ 13 PSUs 21 8 15 Employee stock purchase plan 1 1 1 Total share-based compensation expense $ 42 $ 23 $ 29 Income tax benefit $ 9 $ 5 $ 6 At December 31, 2025, unrecognized share-based compensation and the weighted average remaining recognition period was $ 7 million and 0.7 years, respectively, for RSUs and $ 16 million and 1.2 years, respectively, for PSUs. Equity Awards Restricted Stock Units RSUs are units that, if vested, are payable in shares of BHF common stock. The Company does not credit RSUs with dividend-equivalents as RSUs do not accrue dividends. Accordingly, the estimated fair value of RSUs is based upon the closing price of shares on the date of grant. Most RSUs use graded vesting and vest in thirds on, or shortly after, the first three anniversaries of their grant date, while other RSUs vest in their entirety on the specified anniversary of their grant date. Vesting is subject to continued service, except for employees who meet specified age and service criteria, and in certain other limited circumstances. 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 PSUs are units that, if vested, are multiplied by a performance factor to produce a final number of BHF common stock shares. PSUs cliff vest at the end of a three-year performance period. 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 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. 180 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 12. 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. 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 %. 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. 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: RSUs PSUs Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Nonvested at January 1, 2025 568,408 $ 49.24 807,218 $ 50.18 Granted 282,108 $ 59.18 236,207 $ 61.70 Performance factor adjustment — $ — ( 52,217 ) $ 48.06 Forfeited ( 20,088 ) $ 54.96 ( 8,877 ) $ 54.01 Vested ( 291,073 ) $ 48.83 ( 237,653 ) $ 48.06 Nonvested at December 31, 2025 539,355 $ 54.45 744,678 $ 54.18 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. The weighted average grant date fair value of PSUs granted during the years ended December 31, 2024 and 2023, was $ 46.16 and $ 58.35 , respectively. The total fair value of RSUs that vested during each of the years ended December 31, 2025, 2024 and 2023 was $ 14 million, $ 13 million and $ 15 million, respectively. The total fair value of PSUs that vested during the years ended December 31, 2025, 2024 and 2023, was $ 11 million, $ 13 million and $ 9 million, respectively. Stock Options Stock options represent the contingent right of award holders to purchase shares of BHF common stock at a stated price for a limited time. All stock options have an exercise price equal to the closing price of a share on the date of grant and have a maximum term of ten years . Stock options granted are exercisable at a rate of one-third of each award on each of the first three anniversaries of the grant date. Vesting is subject to continued service, except for employees who meet specified age and service criteria, and in certain other limited circumstances. The Company estimates the fair value of stock options on the date of grant using the Black-Scholes model. The significant assumptions the Company uses in its model include: expected volatility of the price of shares; risk-free rate of return; graded three-year vesting; and expected option life. 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. 181 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 12. Equity (continued) Employee Stock Purchase Plan Shares 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 The states of domicile of the Company’s insurance subsidiaries impose RBC requirements that were developed by the National Association of Insurance Commissioners (“NAIC”). Such requirements are used by regulators to assess the minimum amount of statutory capital and surplus needed for an insurance company to support its operations, based on its size and risk profile (referred to as “company action level RBC”). RBC is based on statutory financial statements and is calculated in a manner prescribed by the NAIC. The RBC ratio, which is the basis for determining regulatory compliance, is equal to total adjusted capital divided by the applicable company action level RBC. Companies below 100% of the company action level RBC are subject to corrective action. As of December 31, 2025, the annual RBC ratios for the Company’s insurance subsidiaries were each in excess of 400 %. The Company’s insurance subsidiaries prepare statutory-basis financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of the state of domicile. Statutory accounting principles differ from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions, reporting of reinsurance agreements and valuing investments and deferred tax assets on a different basis. The tables below present amounts from certain of the Company’s insurance subsidiaries, which are derived from the statutory-basis financial statements to be filed with the insurance regulators. Statutory net income (loss) was as follows: Years Ended December 31, Company State of Domicile 2025 2024 2023 (In millions) Brighthouse Life Insurance Company Delaware $ ( 2,330 ) $ ( 787 ) $ ( 3,131 ) New England Life Insurance Company Massachusetts $ 50 $ 65 $ 41 Statutory capital and surplus was as follows at: December 31, Company 2025 2024 (In millions) Brighthouse Life Insurance Company $ 3,600 $ 3,673 New England Life Insurance Company $ 253 $ 206 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 at both December 31, 2025 and 2024. 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. 182 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 12. Equity (continued) Dividend Restrictions 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: 2026 2025 2024 2023 Company Permitted Without Approval (1) Paid (2) Paid (2) Paid (2) (In millions) Brighthouse Life Insurance Company (3) $ — $ — $ — $ 266 New England Life Insurance Company $ 50 $ — $ — $ 84 ______________ (1) Reflects dividend amounts that may be paid during 2026 without prior regulatory approval. (2) Reflects all amounts paid, including those requiring regulatory approval. (3) Any payment of dividends in 2026 would be considered an extraordinary dividend subject to regulatory approval due to negative unassigned funds (surplus). Under the Delaware Insurance Law, Brighthouse Life Insurance Company is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend as long as the amount of the dividend when aggregated with all other dividends in the preceding 12 months does not exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its net gain from operations for the immediately preceding calendar year (excluding realized capital gains), not including pro rata distributions of Brighthouse Life Insurance Company’s own securities. Brighthouse Life Insurance Company will be permitted to pay a stockholder dividend in excess of the greater of such two amounts only if it files notice of the declaration of such a dividend and the amount thereof with the Delaware Commissioner and the Delaware Commissioner either approves the distribution of the dividend or does not disapprove the distribution within 30 days of its filing. In addition, any dividend that exceeds earned surplus (defined as “unassigned funds (surplus)”) as of the immediately preceding calendar year requires insurance regulatory approval. Under the Delaware Insurance Law, the Delaware Commissioner has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. Under the Massachusetts State Insurance Law, NELICO is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend as long as the aggregate amount of the dividend, when aggregated with all other dividends paid in the preceding 12 months, does not exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its net gain from operations for the immediately preceding calendar year, not including pro rata distributions of NELICO’s own securities. NELICO will be permitted to pay a dividend in excess of the greater of such two amounts only if it files notice of the declaration of such a dividend and the amount thereof with the Massachusetts Commissioner of Insurance (the “Massachusetts Commissioner”) and the Massachusetts Commissioner either approves the distribution of the dividend or does not disapprove the distribution within 30 days of its filing. In addition, any dividend that exceeds earned surplus (defined as “unassigned funds (surplus)”) as of the last filed annual statutory statement requires insurance regulatory approval. Under the Massachusetts State Insurance Law, the Massachusetts Commissioner has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. 183 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 12. Equity (continued) Under New York insurance laws, Brighthouse Life Insurance Company of NY (“BHNY”) is permitted, without prior insurance regulatory clearance, to pay stockholder dividends to its parent in any calendar year based on one of two standards. Under one standard, BHNY is permitted, without prior insurance regulatory clearance, to pay dividends out of earned surplus (defined as positive “unassigned funds (surplus),” excluding 85% of the change in net unrealized capital gains or losses (less capital gains tax), for the immediately preceding calendar year), in an amount up to the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains), not to exceed 30% of surplus to policyholders as of the end of the immediately preceding calendar year. In addition, under this standard, BHNY may not, without prior insurance regulatory clearance, pay any dividends in any calendar year immediately following a calendar year for which its net gain from operations, excluding realized capital gains, was negative. Under the second standard, if dividends are paid from a source other than earned surplus, BHNY may, without prior insurance regulatory clearance, pay an amount up to the lesser of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains). In addition, BHNY will be permitted to pay a dividend to its parent in excess of the amounts allowed under both standards only if it files notice of its intention to declare such a dividend and the amount thereof with the New York Superintendent of Financial Services (the “NY Superintendent”), and the NY Superintendent either approves the distribution of the dividend or does not disapprove the dividend within 30 days of its filing. To the extent BHNY pays a stockholder dividend, such dividend will be paid to Brighthouse Life Insurance Company, its direct parent and sole stockholder. Under BRCD’s plan of operations, no dividend or distribution may be made by BRCD without the prior approval of the Delaware Commissioner. BRCD did no t pay any extraordinary dividends during the years ended December 31, 2025, 2024 and 2023. During each of the years ended December 31, 2025, 2024 and 2023, BRCD paid cash dividends of $ 1 million to its preferred shareholders. 184 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 12. Equity (continued) Accumulated Other Comprehensive Income (Loss) 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 (In millions) Balance at December 31, 2022 $ ( 6,194 ) $ 504 $ ( 1,378 ) $ 1,020 $ ( 58 ) $ ( 6,106 ) OCI before reclassifications 2,149 ( 276 ) ( 636 ) ( 380 ) 9 866 Deferred income tax benefit (expense) (3) ( 451 ) 58 133 80 ( 2 ) ( 182 ) AOCI before reclassifications, net of income tax ( 4,496 ) 286 ( 1,881 ) 720 ( 51 ) ( 5,422 ) Amounts reclassified from AOCI 226 ( 11 ) — — 7 222 Deferred income tax benefit (expense) (3) ( 47 ) 2 — — ( 1 ) ( 46 ) Amounts reclassified from AOCI, net of income tax 179 ( 9 ) — — 6 176 Balance at December 31, 2023 ( 4,317 ) 277 ( 1,881 ) 720 ( 45 ) ( 5,246 ) OCI before reclassifications ( 1,226 ) 136 352 543 ( 22 ) ( 217 ) Deferred income tax benefit (expense) (3) 257 ( 28 ) ( 74 ) ( 114 ) 4 45 AOCI before reclassifications, net of income tax ( 5,286 ) 385 ( 1,603 ) 1,149 ( 63 ) ( 5,418 ) Amounts reclassified from AOCI 189 ( 18 ) — — 6 177 Deferred income tax benefit (expense) (3) ( 40 ) 4 — — ( 1 ) ( 37 ) Amounts reclassified from AOCI, net of income tax 149 ( 14 ) — — 5 140 Balance at December 31, 2024 ( 5,137 ) 371 ( 1,603 ) 1,149 ( 58 ) ( 5,278 ) OCI before reclassifications 1,974 ( 239 ) 440 ( 331 ) 40 1,884 Deferred income tax benefit (expense) (3) ( 414 ) 50 ( 92 ) 70 ( 9 ) ( 395 ) AOCI before reclassifications, net of income tax ( 3,577 ) 182 ( 1,255 ) 888 ( 27 ) ( 3,789 ) Amounts reclassified from AOCI 76 ( 6 ) — — 6 76 Deferred income tax benefit (expense) (3) ( 16 ) 1 — — ( 1 ) ( 16 ) Amounts reclassified from AOCI, net of income tax 60 ( 5 ) — — 5 60 Balance at December 31, 2025 $ ( 3,517 ) $ 177 $ ( 1,255 ) $ 888 $ ( 22 ) $ ( 3,729 ) _______________ (1) See Note 8 for information on offsets to investments related to future policy benefits. (2) Includes OCI related to foreign currency translation and defined benefit plan gains and losses. (3) The effects of income taxes on amounts recorded to AOCI are also recognized in AOCI. These income tax effects are released from AOCI when the related activity is reclassified into results from operations. 185 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 12. Equity (continued) Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Consolidated Statements of Operations Locations Years Ended December 31, 2025 2024 2023 (In millions) Net unrealized investment 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 ( 76 ) ( 189 ) ( 226 ) Income tax (expense) benefit 16 40 47 Net unrealized investment gains (losses), net of income tax ( 60 ) ( 149 ) ( 179 ) Unrealized gains (losses) on derivatives - cash flow hedges: 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 6 18 11 Income tax (expense) benefit ( 1 ) ( 4 ) ( 2 ) Gains (losses) on cash flow hedges, net of income tax 5 14 9 Defined benefit plans adjustment: Amortization of net actuarial gains (losses) ( 6 ) ( 6 ) ( 7 ) Amortization of defined benefit plans, before income tax ( 6 ) ( 6 ) ( 7 ) Income tax (expense) benefit 1 1 1 Amortization of defined benefit plans, net of income tax ( 5 ) ( 5 ) ( 6 ) Total reclassifications, net of income tax $ ( 60 ) $ ( 140 ) $ ( 176 ) 186 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 13. Other Revenues and Other Expenses Other Revenues The Company has entered into contracts with mutual funds, fund managers, and their affiliates (collectively, the “Funds”) whereby the Company is paid monthly or quarterly fees (“12b-1 fees”) for providing certain services to customers and distributors of the Funds. The 12b-1 fees, which are included in other revenues, are generally equal to a fixed percentage of the average daily balance of the customer’s investment in a fund. The percentage is specified in the contract between the Company and the Funds. Payments are generally collected when due and are neither refundable nor able to offset future fees. To earn these fees, the Company performs services such as responding to phone inquiries, maintaining records, providing information to distributors and shareholders about fund performance and providing training to account managers and sales agents. The passage of time reflects the satisfaction of the Company’s performance obligations to the Funds and is used to recognize revenue associated with 12b-1 fees. Other revenues included 12b-1 fees of $ 261 million, $ 272 million and $ 266 million for the years ended December 31, 2025, 2024 and 2023, respectively, of which substantially all were reported in the Annuities segment. Other Expenses Information on other expenses was as follows: Years Ended December 31, 2025 2024 2023 (In millions) Compensation $ 449 $ 408 $ 418 Contracted services and other labor costs 301 285 312 Transition services agreements 14 22 32 Premium and other taxes, licenses and fees 55 60 61 Separate account fees 331 365 366 Volume related costs, excluding compensation, net of DAC capitalization 577 577 540 Interest expense on debt 152 152 153 Other 79 77 95 Total other expenses $ 1,958 $ 1,946 $ 1,977 Capitalization of DAC See Note 6 for additional information on the capitalization of DAC. Interest Expense on Debt See Note 11 for attribution of interest expense by debt issuance. 187 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 14. Employee Benefit Plans BHF Active Defined Contribution Plans Brighthouse Services sponsors qualified and non-qualified defined contribution plans. For the years ended December 31, 2025, 2024 and 2023, the total employer contributions for the qualified defined contribution plan were $ 20 million, $ 20 million and $ 19 million, respectively, and the total (benefit) expense recognition for the non-qualified defined contribution plans were $ 13 million, $ 10 million and $ 9 million, respectively, all of which are reported in other expenses. NELICO Legacy Pension and Other Unfunded Benefit Plans NELICO sponsors both a qualified and a non-qualified defined benefit pension plan, a postretirement plan and other unfunded benefit plans. 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 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. The non-qualified defined benefit pension plan and the postretirement plan had a combined accumulated benefit obligation totaling $ 71 million and $ 75 million at December 31, 2025 and 2024, respectively. These amounts are unfunded. 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 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. BHF established a receivable in the amount of the unfunded obligations due under these plans. MetLife is required to annually reimburse BHF for each prior year’s benefit payments, claims and premiums under the NELICO plans that are listed in the EMA. The Company’s receivable under the EMA for future total estimated benefit payments, claims and premiums was $ 142 million and $ 151 million at December 31, 2025 and 2024, respectively. The receivable is reported in premiums, reinsurance and other receivables. Increases and decreases to the EMA receivable are reported in other revenues. 15. Income Tax The provision for income tax was as follows: Years Ended December 31, 2025 2024 2023 (In millions) Current: Federal $ ( 1 ) $ ( 10 ) $ 7 State and local 16 12 12 Subtotal 15 2 19 Deferred: Federal 21 27 ( 386 ) Provision for income tax expense (benefit) $ 36 $ 29 $ ( 367 ) 188 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 15. Income Tax (continued) The reconciliation of the income tax provision at the statutory tax rate to the provision for income tax as reported was as follows: Years Ended December 31, 2025 2024 2023 Amount (In millions) Percent Amount (In millions) Percent Amount (In millions) Percent 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 ) % Tax credits 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 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 % — — % 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. 189 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 15. 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) U.S. 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 Total $ 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. Net deferred income tax assets and liabilities consisted of the following at: December 31, 2025 2024 (In millions) Deferred income tax assets: Net unrealized investment losses $ 888 $ 1,267 Net operating loss carryforwards 2,343 2,004 Investments, including derivatives 493 147 Tax credit carryforwards 161 190 Employee benefits 35 27 Intangibles 53 60 Other — 4 Total deferred income tax assets 3,973 3,699 Less: Valuation allowance 1 1 Total net deferred income tax assets 3,972 3,698 Deferred income tax liabilities: Policyholder liabilities and receivables 1,893 1,174 DAC 634 649 Other 3 — Total deferred income tax liabilities 2,530 1,823 Net deferred income tax asset (liability) $ 1,442 $ 1,875 190 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 15. Income Tax (continued) The following table sets forth the net operating loss carryforwards for tax purposes at December 31, 2025. Net Operating Loss Carryforwards (In millions) Expiration 2032-2037 $ 1,943 Indefinite 9,214 $ 11,157 The following table sets forth the general business credits and foreign tax credits available for carryforward for tax purposes at December 31, 2025. Tax Credit Carryforwards General Business Credits Foreign Tax Credits (In millions) Expiration 2028-2032 $ — $ 120 2033-2037 16 16 2038-2042 9 — $ 25 $ 136 A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: Years Ended December 31, 2025 2024 2023 (In millions) Balance at January 1, $ 1 $ 19 $ 19 Additions for tax positions of prior years 3 — — Reductions for tax positions of prior years ( 1 ) ( 6 ) — Additions for tax positions of current year — — — Reductions for tax positions of current year ( 2 ) — — Settlements with tax authorities — — — Lapses of statutes of limitations — ( 12 ) — Balance at December 31, $ 1 $ 1 $ 19 Unrecognized tax benefits that, if recognized would impact the effective rate $ 1 $ 1 $ 19 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 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. The income tax years under examination vary by jurisdiction and subsidiary. 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 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. 191 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 15. Income Tax (continued) Tax Sharing Agreements For the periods prior to the Separation, BHF and certain of its subsidiaries filed a consolidated federal income tax return with MetLife, Inc. and its insurance and non-insurance subsidiaries. Current taxes (and the benefits of tax attributes such as losses) are allocated to BHF, and its includable subsidiaries, under a tax sharing agreement with MetLife, Inc. This tax sharing agreement states that federal taxes are computed on a modified separate return basis with benefits for losses. For periods after the Separation through the year ended December 31, 2022, Brighthouse Financial entered into two separate tax sharing agreements. Brighthouse Life Insurance Company, BHNY and BRCD entered into a tax sharing agreement to join a consolidated federal income tax return. BHF and certain of its non-insurance subsidiaries entered into a tax sharing agreement to join a consolidated federal income tax return. The tax sharing agreements state that federal taxes are computed on a modified separate return basis with benefit for losses. NELICO and the non-insurance subsidiaries of Brighthouse Life Insurance Company filed their own federal income tax returns. For periods beginning with the year ended December 31, 2023, BHF and certain of its subsidiaries, including its insurance and reinsurance subsidiaries, file a consolidated federal income tax return. In furtherance thereof, such parties joined a single tax sharing agreement, pursuant to which federal taxes are computed on a modified separate return basis with benefits for losses. Income Tax Transactions with Former Parent 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, 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”). Among other things, the Tax Separation Agreement governs the allocation between MetLife and the Company of the responsibility for the taxes of the MetLife group. 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, 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. 192 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 16. Earnings Per Common Share The calculation of earnings per common share was as follows: Years Ended December 31, 2025 2024 2023 (In millions, except share and per share data) Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ 331 $ 286 $ ( 1,214 ) Weighted average common shares outstanding — basic 57,526,188 61,199,247 66,013,645 Dilutive effect of share-based awards 413,591 401,135 — Weighted average common shares outstanding — diluted 57,939,779 61,600,382 66,013,645 Earnings per common share: Basic $ 5.75 $ 4.67 $ ( 18.39 ) Diluted $ 5.71 $ 4.64 $ ( 18.39 ) 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. Dilutive shares and diluted earnings per share are not applicable when a net loss is reported. 17. Contingencies, Commitments and Guarantees Contingencies Litigation The Company is a defendant in a number of litigation matters. In some of the matters, large or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. 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 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. Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. 193 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 17. Contingencies, Commitments and Guarantees (continued) The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at December 31, 2025. Matters as to Which an Estimate Can Be Made For some loss contingency matters, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. In addition to amounts accrued for probable and reasonably estimable losses, as of December 31, 2025, the Company estimates the aggregate range of reasonably possible losses to be up to approximately $ 10 million. Matters as to Which an Estimate Cannot Be Made For other matters, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. Sales Practices Claims Over the past several years, the Company has faced claims and regulatory inquiries and investigations, alleging improper marketing or sales of individual life insurance policies, annuities or other products. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters. Cost of Insurance Class Actions Richard A. Newton v. Brighthouse Life Insurance Company (U.S. District Court, Northern District of Georgia, Atlanta Division, filed May 8, 2020). 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. Brighthouse Life Insurance Company filed a motion to dismiss in June 2020, which was granted in part and denied in part in March 2021. Plaintiff was granted leave to amend the complaint. On January 18, 2023, plaintiff filed a motion on consent to amend the second amended class action complaint to narrow the scope of the class sought to those who own or owned policies issued in Georgia. The motion was granted on January 23, 2023, and the third amended class action complaint was filed on January 23, 2023. 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. 194 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 17. Contingencies, Commitments and Guarantees (continued) Lawrence Martin v. Brighthouse Life Insurance Company (U.S. District Court, Southern District of New York, filed April 6, 2021). 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. 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. MOVEit Data Security Incident Litigation Kennedy v. Progress Software Corporation, et al. (U.S. District Court, District of Massachusetts, filed October 3, 2023). BHF has been named as a defendant in a purported class action lawsuit. The action relates to a data security incident at an alleged third-party vendor, PBI Research Services (“PBI”), and allegedly involves the MOVEit file transfer system that PBI uses in its provision of services (“MOVEit Incident”). As it relates to BHF, plaintiff seeks to certify a subclass of persons whose private information was allegedly maintained by BHF and accessed or acquired in relation to the MOVEit Incident. Plaintiff alleges, among other things, that BHF negligently chose to utilize PBI to store and transfer plaintiff’s and purported class members’ private information despite PBI’s use of the MOVEit software which plaintiff contends contained security vulnerabilities. The complaint asserts claims against BHF for negligence, negligence per se, and unjust enrichment, and plaintiff seeks declaratory and injunctive relief, damages, attorneys’ fees and prejudgment interest. The court dismissed claims for injunctive relief against BHF, but denied the remainder of a motion to dismiss based on plaintiff’s lack of standing. BHF intends to vigorously defend this matter. Summary Various litigations, claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, investor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, large or indeterminate amounts, including punitive and treble damages, are sought. Although, in light of these considerations, it is possible that an adverse outcome in certain cases could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. 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. 195 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 17. Contingencies, Commitments and Guarantees (continued) Other Loss Contingencies As with litigation and regulatory loss contingencies, the Company considers establishing liabilities for loss contingencies associated with disputes or other matters involving third parties, including counterparties to contractual arrangements entered into by the Company (e.g., third-party vendors and reinsurers), as well as with tax or other authorities (“other loss contingencies”). The Company establishes liabilities for such other loss contingencies when it is probable that a loss will be incurred and the amount of the loss can be reasonably estimated. In matters where it is not probable, but is reasonably possible that a loss will be incurred and the amount of loss can be reasonably estimated, such losses or range of losses are disclosed, and no accrual is made. In the absence of sufficient information to support an assessment of the reasonably possible loss or range of loss, no accrual is made and no loss or range of loss is disclosed. 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. 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, 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. During the first quarter of 2024, an arbitration panel ruled in favor of a reinsurer seeking a premium rate increase retroactive to September 2019 resulting in a $ 187 million loss, of which $ 167 million was reported in universal life and investment product-type policy fees and $ 20 million was reported in other expenses. Commitments Mortgage Loan Commitments The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $ 436 million and $ 271 million at December 31, 2025 and 2024, respectively. Commitments to Fund Partnership Investments, Bank Credit Facilities and Private Corporate Bond Investments The Company commits to fund partnership investments and to lend funds under bank credit facilities and private corporate bond investments. The amounts of these unfunded commitments were $ 1.4 billion and $ 1.7 billion at December 31, 2025 and 2024, respectively. Guarantees In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of reinsurance, acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation with a cumulative maximum of $ 83 million, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments. 196 Table of Contents Brighthouse Financial, Inc. Notes to the Consolidated Financial Statements (continued) 17. Contingencies, Commitments and Guarantees (continued) In addition, the Company indemnifies its directors and officers as provided in its charters and bylaws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future. The Company did no t have any liabilities recorded for indemnities, guarantees and commitments at both December 31, 2025 and 2024. 18. Subsequent Event Preferred Stock Dividend 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. 197 Table of Contents Brighthouse Financial, Inc. Schedule I Consolidated Summary of Investments — Other Than Investments in Related Parties December 31, 2025 (In millions) Types of Investments Cost or Amortized Cost (1) Estimated Fair Value Amount at Which Shown on Balance Sheet Fixed maturity securities: Bonds: U.S. government and agency $ 7,216 $ 6,711 $ 6,711 State and political subdivision 3,691 3,494 3,494 Public utilities 3,978 3,639 3,639 Foreign government 973 942 942 All other corporate bonds 49,858 46,631 46,631 Total bonds 65,716 61,417 61,417 Mortgage-backed and asset-backed securities 21,196 20,461 20,461 Redeemable preferred stock 134 136 136 Total fixed maturity securities 87,046 82,014 82,014 Trading securities 512 506 506 Equity securities: Non-redeemable preferred stock 18 10 10 Common stock: Industrial, miscellaneous and all other 53 67 67 Public utilities — 2 2 Total equity securities 71 79 79 Mortgage loans 22,755 22,755 Policy loans 1,450 1,450 Limited partnerships and LLCs 4,696 4,696 Short-term investments 1,197 1,197 Other invested assets 7,932 7,932 Total investments $ 125,659 $ 120,629 _______________ (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; for equity securities, cost represents original cost; for limited partnerships and LLCs, cost represents original cost adjusted for equity in earnings and distributions. 198 Table of Contents Brighthouse Financial, Inc. Schedule II Condensed Financial Information (Parent Company Only) December 31, 2025 and 2024 (In millions, except share and per share data) 2025 2024 Condensed Balance Sheets Assets Investments: Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $ 148 and $ 190 , respectively; allowance for credit losses of $ 0 and $ 0 , respectively) $ 148 $ 190 Short-term investments, principally at estimated fair value 521 622 Investment in subsidiary 9,678 7,799 Other invested assets, principally at estimated fair value 2 5 Total investments 10,349 8,616 Cash and cash equivalents 199 245 Premiums and other receivables 206 163 Current income tax recoverable 29 42 Other assets 4 4 Total assets $ 10,787 $ 9,070 Liabilities and Stockholders’ Equity Liabilities Long-term and short-term debt $ 3,580 $ 3,716 Deferred income tax liability 29 31 Other liabilities 410 364 Total liabilities 4,019 4,111 Stockholders’ Equity Preferred stock, par value $ 0.01 per share; 1,753 aggregate liquidation preference — — Common stock, par value $ 0.01 per share; 1,000,000,000 shares authorized; 124,081,967 and 123,480,326 shares issued, respectively; 57,171,217 and 58,629,049 shares outstanding, respectively 1 1 Additional paid-in capital 13,870 13,927 Retained earnings (deficit) ( 686 ) ( 1,119 ) Treasury stock, at cost; 66,910,750 and 64,851,277 shares, respectively ( 2,688 ) ( 2,572 ) Accumulated other comprehensive income (loss) ( 3,729 ) ( 5,278 ) Total stockholders’ equity 6,768 4,959 Total liabilities and stockholders’ equity $ 10,787 $ 9,070 See accompanying notes to the condensed financial information. 199 Table of Contents Brighthouse Financial, Inc. Schedule II Condensed Financial Information (continued) (Parent Company Only) For the Years Ended December 31, 2025, 2024 and 2023 (In millions) 2025 2024 2023 Condensed Statements of Operations Revenues Net investment income $ 35 $ 54 $ 38 Other revenues 5 9 — Net derivative gains (losses) ( 1 ) 20 10 Total revenues 39 83 48 Expenses Other expenses 222 207 192 Total expenses 222 207 192 Income (loss) before provision for income tax and equity in earnings (losses) of subsidiaries ( 183 ) ( 124 ) ( 144 ) Provision for income tax expense (benefit) ( 32 ) ( 26 ) ( 30 ) Income (loss) before equity in earnings (losses) of subsidiaries ( 151 ) ( 98 ) ( 114 ) Equity in earnings (losses) of subsidiaries 584 486 ( 998 ) Net income (loss) 433 388 ( 1,112 ) Less: Preferred stock dividends 102 102 102 Net income (loss) available to common shareholders $ 331 $ 286 $ ( 1,214 ) Comprehensive income (loss) $ 1,982 $ 356 $ ( 252 ) See accompanying notes to the condensed financial information. 200 Table of Contents Brighthouse Financial, Inc. Schedule II Condensed Financial Information (continued) (Parent Company Only) For the Years Ended December 31, 2025, 2024 and 2023 (In millions) 2025 2024 2023 Condensed Statements of Cash Flows Cash flows from operating activities Net income (loss) $ 433 $ 388 $ ( 1,112 ) Equity in (earnings) losses of subsidiaries ( 584 ) ( 486 ) 998 Distributions from subsidiary — — 350 Other, net 49 50 ( 24 ) Net cash provided by (used in) operating activities ( 102 ) ( 48 ) 212 Cash flows from investing activities Sales, maturities and repayments of fixed maturity securities 222 104 — Purchases of fixed maturity securities ( 183 ) ( 180 ) ( 106 ) Cash received in connection with freestanding derivatives 14 15 30 Cash paid in connection with freestanding derivatives ( 6 ) ( 9 ) ( 6 ) Net change in short-term investments 117 ( 30 ) 211 Net cash provided by (used in) investing activities 164 ( 100 ) 129 Cash flows from financing activities Net change in payables for collateral under securities loaned and other transactions ( 4 ) 6 — Long-term and short-term debt issued 724 570 753 Long-term and short-term debt repaid ( 610 ) ( 339 ) ( 439 ) Dividends on preferred stock ( 102 ) ( 102 ) ( 102 ) Treasury stock acquired in connection with share repurchases ( 102 ) ( 250 ) ( 250 ) Financing element on certain derivative instruments and other derivative related transactions, net — 8 ( 1 ) Other, net ( 14 ) ( 12 ) ( 14 ) Net cash provided by (used in) financing activities ( 108 ) ( 119 ) ( 53 ) Change in cash and cash equivalents ( 46 ) ( 267 ) 288 Cash and cash equivalents, beginning of year 245 512 224 Cash and cash equivalents, end of year $ 199 $ 245 $ 512 Supplemental disclosures of cash flow information Net cash paid (received) for: Interest $ 169 $ 191 $ 176 Income tax $ ( 42 ) $ ( 79 ) $ ( 6 ) See accompanying notes to the condensed financial information. 201 Table of Contents Brighthouse Financial, Inc. Schedule II Notes to the Condensed Financial Information (Parent Company Only) 1. Basis of Presentation The condensed financial information of Brighthouse Financial, Inc. (the “Parent Company” or “BHF”) should be read in conjunction with the consolidated financial statements of Brighthouse Financial, Inc. and its subsidiaries and the notes thereto (the “Consolidated Financial Statements”). These condensed unconsolidated financial statements reflect the results of operations, financial position and cash flows for Brighthouse Financial, Inc. Investments in subsidiaries are accounted for using the equity method of accounting. The preparation of these condensed unconsolidated financial statements in conformity with GAAP requires management to adopt accounting policies and make certain estimates and assumptions. The most important of these estimates and assumptions relate to the fair value measurements, identifiable intangible assets and the provision for potential losses that may arise from litigation and regulatory proceedings and tax audits, which may affect the amounts reported in the condensed unconsolidated financial statements and accompanying notes. Actual results could differ from these estimates. 2. Investment in Subsidiary 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. 3. Long-term and Short-term Debt Long-term and short-term debt outstanding was as follows at: December 31, Stated Interest Rate Maturity 2025 2024 (In millions) Senior notes — unaffiliated 3.700 % 2027 $ 757 $ 756 Senior notes — unaffiliated 5.625 % 2030 615 615 Senior notes — unaffiliated 4.700 % 2047 1,002 1,002 Senior notes — unaffiliated 3.850 % 2051 397 397 Junior subordinated debentures — unaffiliated 6.250 % 2058 364 364 Total long-term debt (1) 3,135 3,134 Short-term intercompany loans 445 582 Total long-term and short-term debt (1) $ 3,580 $ 3,716 _______________ (1) 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. 202 Table of Contents Brighthouse Financial, Inc. Schedule II Notes to the Condensed Financial Information (continued) (Parent Company Only) 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. Senior Notes and Junior Subordinated Debentures See Note 11 of the Notes to the Consolidated Financial Statements for information regarding the unaffiliated senior notes and junior subordinated debentures. Credit Facilities See Note 11 of the Notes to the Consolidated Financial Statements for information regarding BHF’s credit facilities. Short-term Intercompany Loans BHF, as borrower, has a short-term intercompany loan agreement with certain of its non-insurance subsidiaries, as lenders, for the purposes of facilitating the management of the available cash of the borrower and the lenders on a short-term and consolidated basis. Such intercompany loan agreement allows management to optimize the efficient use of and maximize the yield on cash between BHF and its subsidiary lenders. 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, 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. Intercompany Liquidity Facilities BHF has established intercompany liquidity facilities with certain of its insurance and non-insurance subsidiaries to provide short-term liquidity within and across the combined group of companies. Under these facilities, which are comprised of a series of revolving loan agreements among BHF and its participating subsidiaries, each company may lend to or borrow from each other, subject to certain maximum limits for a term of up to 364 days, depending on the agreement. During the years ended December 31, 2025, 2024 and 2023, there were no borrowings or repayments by BHF under these facilities. 203 Table of Contents Brighthouse Financial, Inc. Schedule III Consolidated Supplementary Insurance Information December 31, 2025 and 2024 (In millions) Segment DAC and VOBA Future Policy Benefits and Other Policy-Related Balances Policyholder Account Balances Unearned Premiums (1) (2) Unearned Revenue (1) 2025 Annuities $ 3,952 $ 4,290 $ 70,103 $ — $ 54 Life 612 6,751 2,867 10 361 Run-off 3 18,899 5,504 — 793 Corporate & Other — 5,978 9,478 5 — Total $ 4,567 $ 35,918 $ 87,952 $ 15 $ 1,208 2024 Annuities $ 4,027 $ 4,040 $ 67,777 $ — $ 60 Life 680 6,648 2,859 9 357 Run-off 3 18,672 6,376 — 715 Corporate & Other — 5,993 10,977 5 — Total $ 4,710 $ 35,353 $ 87,989 $ 14 $ 1,132 _______________ (1) Amounts are included in the future policy benefits and other policy-related balances column. (2) Includes premiums received in advance. 204 Table of Contents Brighthouse Financial, Inc. Schedule III Consolidated Supplementary Insurance Information (continued) December 31, 2025, 2024 and 2023 (In millions) Segment Premiums and Universal Life and Investment-Type Product Policy Fees Net Investment Income (1) Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances Amortization of DAC and VOBA Other Expenses 2025 Annuities $ 1,782 $ 3,051 $ 1,877 $ 522 $ 1,397 Life 722 431 839 87 198 Run-off 352 1,149 868 — 128 Corporate & Other — 613 409 — 235 Total $ 2,856 $ 5,244 $ 3,993 $ 609 $ 1,958 2024 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 — 678 450 — 193 Total $ 2,886 $ 5,222 $ 4,430 $ 599 $ 1,946 2023 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 — 572 388 — 216 Total $ 3,123 $ 4,664 $ 4,501 $ 620 $ 1,977 _______________ (1) See Note 2 of the Notes to the Consolidated Financial Statements for the basis of allocation of net investment income. 205 Table of Contents Brighthouse Financial, Inc. Schedule IV Consolidated Reinsurance December 31, 2025, 2024 and 2023 (Dollars in millions) Gross Amount Ceded Assumed Net Amount % Amount Assumed to Net 2025 Life insurance in-force (1) $ 441,648 $ 117,396 $ 5,035 $ 329,287 1.5 % Insurance premium Life insurance (2) $ 1,086 $ 403 $ 9 $ 692 1.3 % Accident & health insurance 178 175 — 3 — % Total insurance premium $ 1,264 $ 578 $ 9 $ 695 1.3 % 2024 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 189 187 — 2 — % Total insurance premium $ 1,395 $ 637 $ 12 $ 770 1.6 % 2023 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 205 196 — 9 — % Total insurance premium $ 1,499 $ 685 $ 14 $ 828 1.7 % _______________ (1) Includes life insurance products in the Life, Run-off and Corporate & Other segments. (2) Includes annuities with life contingencies. 206 Table of Contents Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.