What changed in this filing

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Item 1. Financial Statements

2026-05-07 compared with 2025-11-07 · 271 added, 546 removed, 1524 unchanged (35% of the section changed)

2 unchanged sentences

Interim Condensed Consolidated Balance Sheets

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

March 31, 2026 (Unaudited) and December 31, 2025

(In millions, except share and per share data)

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

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

54 unchanged sentences

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

For the Three Months and Nine Months Ended September 30, 2025 and 2024 (Unaudited)

For the Three Months Ended March 31, 2026 and 2025 (Unaudited)

(In millions, except per share data)

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Premiums $ 168 $ 186

6 unchanged sentences

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

( 252 ) 22 1,108 1,632

Interest credited to policyholder account balances 493 561

21 unchanged sentences

Interim Condensed Consolidated Statements of Equity

For the Three Months and Nine Months Ended September 30, 2025 and 2024 (Unaudited)

For the Three Months Ended March 31, 2026 and 2025 (Unaudited)

(In millions)

8 unchanged sentences

Other comprehensive income (loss), net of income tax ( 427 ) ( 427 ) ( 427 )

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

Treasury stock acquired in connection with share repurchases — — —

Share-based compensation — 1 ( 1 ) — —

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

Change in noncontrolling interests — ( 2 ) ( 2 )

Net income (loss) 479 479 2 481

Other comprehensive income (loss), net of income tax 237 237 237

Balance at September 30, 2025 $ — $ 1 $ 13,893 $ ( 823 ) $ ( 2,688 ) $ ( 4,020 ) $ 6,363 $ 65 $ 6,428

Balance at March 31, 2026 $ — $ 1 $ 13,869 $ ( 1,452 ) $ ( 2,699 ) $ ( 4,156 ) $ 5,563 $ 65 $ 5,628

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

7 unchanged sentences

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

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

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

Share-based compensation — 7 ( 1 ) 6 6

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

Change in noncontrolling interests — ( 2 ) ( 2 )

Net income (loss) 176 176 2 178

Other comprehensive income (loss), net of income tax 1,292 1,292 1,292

Balance at September 30, 2024 $ — $ 1 $ 13,953 $ ( 1,790 ) $ ( 2,512 ) $ ( 4,127 ) $ 5,525 $ 65 $ 5,590

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

See accompanying notes to the interim condensed consolidated financial statements.

1 unchanged sentence

Interim Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2025 and 2024 (Unaudited)

For the Three Months Ended March 31, 2026 and 2025 (Unaudited)

(In millions)

Nine Months Ended

September 30,

Three Months Ended

Net cash provided by (used in) operating activities $ ( 221 ) $ 146

17 unchanged sentences

Net change in other invested assets 1 —

Other, net — ( 4 )

Net cash provided by (used in) investing activities

2,047 ( 1,837 )

Cash flows from financing activities

21 unchanged sentences

Brighthouse Financial, Inc.

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

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

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

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

1 unchanged sentence

and Corporate & Other.

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

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

Basis of Presentation

14 unchanged sentences

Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2025 Annual Report.

Summary of Significant Accounting Policies

In connection with the establishment of a trading portfolio comprised of fixed income securities (classified as “trading securities” under GAAP), the Company updated its impacted accounting policies as described below.

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

Trading Securities

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

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

Adoption of New Accounting Pronouncements

1 unchanged sentence

The Company considers the applicability and impact of all ASUs.

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

There were no significant ASUs adopted during the period ended March 31, 2026.

Brighthouse Financial, Inc.

2 unchanged sentences

Future Adoption of New Accounting Pronouncements

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

Purchased Loans ).

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

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

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

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

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

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

4 unchanged sentences

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

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

Improvements to Income Tax Disclosures) .

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

This ASU is effective for annual periods starting with fiscal year 2025.

The Company has elected to implement this ASU on a retrospective basis.

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

Segment Information

13 unchanged sentences

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

Adjusted earnings was updated during the first quarter of 2025 in connection with the establishment of a trading portfolio comprised of certain fixed income securities (classified as “trading securities” under GAAP).

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

Brighthouse Financial, Inc.

12 unchanged sentences

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

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

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

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

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

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

4 unchanged sentences

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

Three Months Ended September 30, 2025

Annuities Life Run-off Corporate & Other Total

(In millions)

Total revenues $ 920 $ 301 $ 378 $ 217 $ 1,816

Revenues excluded from adjusted earnings (1) ( 416 ) 4 ( 7 ) 64

Segment expenses:

Policyholder benefits and claims 125 142 ( 519 ) —

Interest credited to policyholder account balances, excluding market value adjustments 357 30 61 103

Amortization of DAC and VOBA 131 22 — —

Interest expense on debt — — — 38

Other expenses (2) 348 54 32 8

Provision for income tax expense (benefit) 71 9 170 ( 9 )

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

Preferred stock dividends — — — 26

Adjusted earnings (loss) $ 304 $ 40 $ 641 $ ( 15 ) 970

Adjustments for:

Net investment gains (losses) 48

Investment gains (losses) on trading securities

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

Change in market risk benefits ( 289 )

Market value adjustments ( 10 )

Provision for income tax (expense) benefit 137

Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ 453

Interest revenue $ 770 $ 117 $ 292 $ 148

Brighthouse Financial, Inc.

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

Segment Information (continued)

Three Months Ended September 30, 2024

Annuities Life Run-off Corporate & Other Total

(In millions)

Total revenues $ 1,093 $ 292 $ 477 $ 156 $ 2,018

Revenues excluded from adjusted earnings (1) ( 221 ) ( 11 ) 100 ( 27 )

Segment expenses:

Policyholder benefits and claims 88 247 ( 313 ) —

Interest credited to policyholder account balances, excluding market value adjustments 341 26 60 118

Amortization of DAC and VOBA 127 23 — —

Interest expense on debt — — — 38

Other expenses (2) 355 39 46 14

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

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

Preferred stock dividends — — — 26

Adjusted earnings (loss) $ 327 $ ( 25 ) $ 463 $ 2 767

Adjustments for:

Net investment gains (losses) ( 60 )

Investment gains (losses) on trading securities

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

Change in market risk benefits ( 610 )

Market value adjustments ( 11 )

Provision for income tax (expense) benefit 163

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

Interest revenue $ 729 $ 112 $ 275 $ 178

Brighthouse Financial, Inc.

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

Segment Information (continued)

Nine Months Ended September 30, 2025

Annuities Life Run-off Corporate & Other Total

Three Months Ended March 31, 2026

Corporate & Other

(In millions)

23 unchanged sentences

Segment Information (continued)

Nine Months Ended September 30, 2024

Annuities Life Run-off Corporate & Other Total

Three Months Ended March 31, 2025

Corporate & Other

(In millions)

24 unchanged sentences

Total assets by segment were as follows at:

September 30, 2025 December 31, 2024

March 31, 2026

December 31, 2025

(In millions)

Annuities $ 169,641 $ 163,830

Life 27,225 26,261

Run-off 25,263 24,873

Corporate & Other

Total $ 244,679 $ 238,537

Brighthouse Financial, Inc.

3 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

(In millions)

Annuity products

$ 565 $ 586 $ 1,734 $ 1,827

Life insurance products

Other products

Total $ 844 $ 883 $ 2,571 $ 2,568

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

Revenues derived from any individual customer did not exceed 10% of premiums, universal life and investment-type product policy fees and other revenues for the three months and nine months ended September 30, 2025 and 2024.

Revenues derived from any individual customer did not exceed 10% of premiums, universal life and investment-type product policy fees and other revenues for the three months ended March 31, 2026 and 2025.

Brighthouse Financial, Inc.

3 unchanged sentences

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

Nine Months Ended September 30,

Three Months Ended March 31,

Term and Whole Life Insurance Income Annuities Structured Settlement and Pension Risk Transfer Annuities Term and Whole Life Insurance Income Annuities Structured Settlement and Pension Risk Transfer Annuities

3 unchanged sentences

Beginning balance at original discount rate

Effect of model refinements 3 — — 4 — —

Effect of changes in cash flow assumptions ( 116 ) — — 128 — —

Effect of actual variances from expected experience

Adjusted beginning of period balance

Issuances 11 — — 52 — —

Interest accrual

7 unchanged sentences

Effect of model refinements

Effect of changes in cash flow assumptions ( 130 ) 18 22 208 ( 23 ) 81

Effect of actual variances from expected experience

Adjusted beginning of period balance

Issuances 11 298 — 56 304 —

Interest accrual

6 unchanged sentences

Net liability for future policy benefits, after reinsurance recoverable

Weighted-average duration of liability 7.2 years 7.7 years 11.5 years 7.7 years 8.0 years 11.5 years

Weighted-average duration of liability

Weighted-average interest accretion rate

8 unchanged sentences

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:

Nine Months Ended

September 30,

Three Months Ended

(Dollars in millions)

1 unchanged sentence

Beginning balance before the effect of unrealized gains and losses 10,298 9,277

Effect of changes in cash flow assumptions 480 895

Effect of actual variances from expected experience 45 63

11 unchanged sentences

Gross assessments recognized during period

The measurement of liabilities for secondary guarantees can be significantly impacted by changes in assumptions for policyholder behavior, as well as the expected general account rate of return, which is driven by the Company’s assumption for long-term treasury yields.

The Company’s practice of projecting treasury yields uses a mean reversion approach that assumes that long-term interest rates are less influenced by short-term fluctuations and are only changed when sustained interim deviations are expected.

As part of the 2025 and 2024 AAR, 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.

Brighthouse Financial, Inc.

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

Insurance Liabilities (continued)

A reconciliation of the net LFPBs for non-participating traditional and limited-payment contracts and the additional insurance liabilities for universal life-type contracts with secondary guarantees reported in the preceding rollforward tables to LFPBs on the consolidated balance sheets was as follows at:

September 30,

(In millions)

8 unchanged sentences

(1) Includes liabilities related to fully reinsured individual long-term care insurance.

(2) The effect of changes in assumptions for ULSG liabilities, including the liability for profits followed by losses was ($ 1.2 ) billion for the nine months ended September 30, 2025.

(2) Participating whole life insurance uses an interest assumption based on the non-forfeiture interest rate, ranging from 3.5 % to 4.5 %, and mortality rates guaranteed in calculating the cash surrender values described in such contracts, and also includes a liability for terminal dividends.

Participating whole life insurance represented 3 % of the Company’s life insurance in-force at both September 30, 2025 and 2024, and 38 % and 39 % of gross traditional life insurance premiums for the nine months ended September 30, 2025 and 2024, respectively.

Participating whole life insurance represented 3 % of the Company’s life insurance in-force at both March 31, 2026 and 2025, and 38 % and 39 % of gross traditional life insurance premiums for the three months ended March 31, 2026 and 2025, respectively.

Brighthouse Financial, Inc.

5 unchanged sentences

(Dollars in millions)

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Balance, beginning of period $ 2,627 $ 3,403 $ 52,594 $ 13,252 $ 4,461 $ 646

8 unchanged sentences

Weighted-average crediting rate (2) 0.57 % 0.71 % 0.48 % 1.01 % 0.86 % 1.08 %

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

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

12 unchanged sentences

A reconciliation of policyholder account balances reported in the preceding rollforward table to the liability for policyholder account balances on the consolidated balance sheets was as follows at:

September 30,

(In millions)

10 unchanged sentences

(In millions)

September 30, 2025

March 31, 2026

Annuities (1):

54 unchanged sentences

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

Nine Months Ended

September 30,

Three Months Ended

(Dollars in millions)

2 unchanged sentences

Decrements ( 26 ) ( 23 )

Effect of changes in future expected assumptions 540 ( 53 )

Effect of actual different from expected experience 115 ( 19 )

1 unchanged sentence

Effect of changes in fund returns 242 87

Effect of changes in equity index volatility

Issuances 1 1

8 unchanged sentences

_______________

(1) Amounts represent the sum of MRB assets and MRB liabilities presented on the consolidated balance sheets at September 30, 2025 and 2024, with the exception of $ 29 million and $ 47 million, respectively, of index-linked annuities not included in this table.

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

As part of the 2025 and 2024 AAR, 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.

(1) Amounts represent the sum of MRB assets and MRB liabilities presented on the consolidated balance sheets at March 31, 2026 and 2025, with the exception of $ 80 million and $ 30 million, respectively, of index-linked annuity MRBs not included in this table.

Brighthouse Financial, Inc.

3 unchanged sentences

Information regarding separate account liabilities was as follows:

Nine Months Ended September 30,

Three Months Ended March 31,

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

10 unchanged sentences

A reconciliation of separate account liabilities reported in the preceding rollforward table to the separate account liabilities balance on the consolidated balance sheets was as follows at:

September 30,

(In millions)

4 unchanged sentences

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

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(In millions)

12 unchanged sentences

(In millions)

September 30, 2025

March 31, 2026

Account balances reported in the preceding rollforward tables:

4 unchanged sentences

Cash surrender value $ 8,564 $ 74,675 $ 51,576 $ 13,006 $ 3,990 $ 2,780

September 30, 2024

March 31, 2025

Account balances reported in the preceding rollforward tables:

13 unchanged sentences

(In millions)

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Balance, beginning of period $ 1,949 $ 120 $ 1,581 $ 265 $ 315

7 unchanged sentences

Balance, end of period $ 2,153 $ 170 $ 1,599 $ 257 $ 341

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

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

9 unchanged sentences

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

Nine Months Ended September 30,

Three Months Ended March 31,

Variable Annuities Fixed Rate Annuities Variable Annuities Fixed Rate Annuities

1 unchanged sentence

Balance, beginning of period

Amortization ( 16 ) — ( 17 ) ( 1 )

$ 177 $ 5 $ 198 $ 6

( 5 ) — ( 5 ) —

Balance, end of period

$ 172 $ 5 $ 193 $ 6

Brighthouse Financial, Inc.

3 unchanged sentences

Information regarding unearned revenue, included in other policy-related balances, was as follows:

Nine Months Ended September 30,

Three Months Ended March 31,

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

1 unchanged sentence

Balance, beginning of period

$ 360 $ 793 $ 54 $ 357 $ 715 $ 60

Capitalization

Amortization ( 26 ) ( 56 ) ( 5 ) ( 27 ) ( 46 ) ( 5 )

9 35 — 11 39 —

( 9 ) ( 20 ) ( 2 ) ( 9 ) ( 18 ) ( 2 )

Balance, end of period

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

$ 360 $ 808 $ 52 $ 359 $ 736 $ 58

See Notes 1 and 10 of the Notes to the Consolidated Financial Statements included in the 2025 Annual Report for a description of the Company’s accounting policies for investments and the fair value hierarchy for investments and the related valuation methodologies.

Fixed Maturity Securities Available-For-Sale

1 unchanged sentence

Fixed maturity securities by sector were as follows at:

September 30, 2025 December 31, 2024

March 31, 2026

December 31, 2025

Amortized Cost

Allowance for Credit Losses Gross Unrealized Estimated Fair Value

Allowance for Credit Losses

Gross Unrealized

Estimated Fair Value

Amortized Cost

Allowance for Credit Losses Gross Unrealized Estimated Fair Value

Gains Losses Gains Losses

Allowance for Credit Losses

Gross Unrealized

Estimated Fair Value

(In millions)

corporate $ 40,933 $ 26 $ 455 $ 3,033 $ 38,329 $ 40,894 $ 47 $ 215 $ 3,939 $ 37,123

Foreign corporate 12,162

3 unchanged sentences

government and agency 7,248 — 63 648 6,663

Commercial mortgage-backed securities

7,216 — 105 610 6,711

Asset-backed securities

6,024 — 36 55 6,005 6,354 — 33 75 6,312

Commercial mortgage-backed securities

State and political subdivision 3,633

1 unchanged sentence

Total fixed maturity securities

The Company held non-income producing fixed maturity securities with an estimated fair value of $ 15 million and $ 30 million at September 30, 2025 and December 31, 2024, respectively.

The Company held non-income producing fixed maturity securities with an estimated fair value of $ 12 million and $ 14 million at March 31, 2026 and December 31, 2025, respectively.

Brighthouse Financial, Inc.

2 unchanged sentences

Maturities of Fixed Maturity Securities

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

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at March 31, 2026:

Due in One Year or Less

14 unchanged sentences

The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

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

12 unchanged sentences

government and agency 1,272 27 2,042 621 600 10 2,255 600

CMBS 842 30 4,108 221 1,326 90 4,402 332

ABS 482 3 773 52 717 10 1,081 65

2,240 9 702 45 513 2 751 53

1,271 11 3,789 225 329 2 4,291 224

State and political subdivision 422 10 1,675 298 255 7 1,799 293

1 unchanged sentence

Total fixed maturity securities

$ 18,879 $ 752 $ 36,331 $ 5,802 $ 8,111 $ 649 $ 38,363 $ 5,282

Total number of securities in an unrealized loss position

2,821 4,897 1,328 5,093

Brighthouse Financial, Inc.

21 unchanged sentences

An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income.

The accrued interest receivable on fixed maturity securities totaled $ 706 million and $ 672 million at September 30, 2025 and December 31, 2024, respectively, and is included in accrued investment income.

The accrued interest receivable on fixed maturity securities totaled $ 697 million and $ 671 million at March 31, 2026 and December 31, 2025, respectively, and is included in accrued investment income.

Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”).

5 unchanged sentences

Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities.

Brighthouse Financial, Inc.

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

Investments (continued)

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 20 securities, at September 30, 2025.

Based on the Company’s current evaluation of its fixed maturity securities in an unrealized loss position and the current intent or requirement to sell, the Company recorded an allowance for credit losses of $ 65 million, relating to 22 securities, at March 31, 2026.

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.

1 unchanged sentence

These issuers continued to make timely principal and interest payments and the estimated fair value is expected to recover as the securities approach maturity.

Brighthouse Financial, Inc.

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

Investments (continued)

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:

Corporate Foreign Corporate RMBS CMBS Total

Foreign Corporate

(In millions)

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Balance, beginning of period

4 unchanged sentences

Balance, end of period $

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Balance, beginning of period

5 unchanged sentences

_______________

(1) The Company recorded total write-offs of $ 33 million and $ 10 million for the nine months ended September 30, 2025 and 2024, respectively.

(1) The Company did not record any write-offs for the three months ended March 31, 2026.

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

Brighthouse Financial, Inc.

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

Investments (continued)

Mortgage Loans

1 unchanged sentence

Mortgage loans are summarized as follows at:

September 30, 2025 December 31, 2024

March 31, 2026

December 31, 2025

(Dollars in millions)

Commercial $ 12,634 55.3 % $ 13,330 57.2 %

Agricultural 4,566 20.0 4,591 19.7

Residential 5,867 25.7 5,543 23.8

Total mortgage loans (1) 22,830

2 unchanged sentences

_______________

(1) Purchases of mortgage loans from third parties were $ 250 million and $ 807 million for the three months and nine months ended September 30, 2025, respectively, and $ 314 million and $ 664 million for the three months and nine months ended September 30, 2024, respectively, and were primarily comprised of residential mortgage loans.

Brighthouse Financial, Inc.

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

Investments (continued)

(1) Purchases of mortgage loans from third parties were $ 296 million and $ 178 million for the three months ended March 31, 2026 and 2025, respectively, and were primarily comprised of residential mortgage loans.

Allowance for Credit Losses for Mortgage Loans

4 unchanged sentences

An allowance for credit losses is generally not estimated on an accrued interest receivable, rather when a loan is placed in nonaccrual status the associated accrued interest receivable balance is written off with a corresponding reduction to net investment income.

The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $ 130 million and $ 132 million at September 30, 2025 and December 31, 2024, respectively.

The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $ 126 million and $ 132 million at March 31, 2026 and December 31, 2025, respectively.

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

11 unchanged sentences

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

Brighthouse Financial, Inc.

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

Investments (continued)

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

3 unchanged sentences

Any subsequent PCD mortgage loan allowance for credit losses is evaluated in a manner similar to the process described above for each of the three portfolio segments.

Brighthouse Financial, Inc.

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

Investments (continued)

Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment

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

Commercial Agricultural Residential Total

(In millions)

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Balance, beginning of period

2 unchanged sentences

Balance, end of period

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Balance, beginning of period

2 unchanged sentences

Balance, end of period

Brighthouse Financial, Inc.

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

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)

September 30, 2025

March 31, 2026

Commercial mortgage loans

1 unchanged sentence

Less than 65%

65% to 75% 142 257 — 815 874 974 3,062

76% to 80% — — — 296 239 715 1,250

Greater than 80%

3 unchanged sentences

Less than 65%

65% to 75% 42 — 17 83 103 21 266

76% to 80% — — — — — 3 3

Greater than 80%

1 unchanged sentence

Residential mortgage loans

Performing 565 694 196 1,170 1,537 1,592 5,754

Nonperforming

Total residential mortgage loans 12

Total $ 1,313 $ 1,900 $ 565 $ 3,923 $ 5,651 $ 9,715 $ 23,067

Brighthouse Financial, Inc.

1 unchanged sentence

Investments (continued)

2024 2023 2022 2021 2020 Prior Total

(In millions)

3 unchanged sentences

Less than 65%

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

76% to 80% — — 117 201 174 602 1,094

Greater than 80%

3 unchanged sentences

Less than 65%

65% to 75% — 18 80 113 6 20 237

76% to 80% — — — — 1 — 1

Greater than 80%

1 unchanged sentence

Residential mortgage loans

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

Nonperforming

Total residential mortgage loans

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

The loan-to-value ratio is a measure commonly used to assess the quality of commercial and agricultural mortgage loans.

5 unchanged sentences

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

September 30, 2025 December 31, 2024

March 31, 2026

December 31, 2025

Amortized Cost % of

5 unchanged sentences

Less than 1.00x

Total $ 12,634 100.0 % $ 13,330 100.0 %

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

5 unchanged sentences

Past Due Mortgage Loans by Portfolio Segment

The Company has a high-quality, well-performing mortgage loan portfolio, with 99 % of all mortgage loans classified as performing at both September 30, 2025 and December 31, 2024.

The Company has a high-quality, well-performing mortgage loan portfolio, with 99 % of all mortgage loans classified as performing at both March 31, 2026 and December 31, 2025.

Delinquency is defined consistent with industry practice, when mortgage loans are past due as follows:

2 unchanged sentences

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

September 30, 2025 December 31, 2024

Commercial Agricultural Residential Total Commercial Agricultural Residential Total

March 31, 2026

December 31, 2025

(In millions)

Current $ 12,554 $ 4,551 $ 5,661 $ 22,766 $ 13,210 $ 4,566 $ 5,423 $ 23,199

30-59 days past due

2 unchanged sentences

180+ days past due

$ 12,634 $ 4,566 $ 5,867 $ 23,067 $ 13,330 $ 4,591 $ 5,543 $ 23,464

Mortgage Loans in Nonaccrual Status by Portfolio Segment

1 unchanged sentence

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

Commercial Agricultural Residential (1)

Residential (1)

(In millions)

September 30, 2025

$ 236 $ 9 $ 113 $ 358

March 31, 2026 $

December 31, 2025 $

_______________

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

Current period investment income on mortgage loans in nonaccrual status was $ 6 million and $ 3 million for the nine months ended September 30, 2025 and 2024, respectively.

(1) The Company had $ 51 million and $ 54 million of mortgage loans in nonaccrual status for which there was no related allowance for credit losses at March 31, 2026 and December 31, 2025, respectively.

Current period investment income on mortgage loans in nonaccrual status was $ 2 million and less than $ 1 million for the three months ended March 31, 2026 and 2025, respectively.

Modified Mortgage Loans by Portfolio Segment

1 unchanged sentence

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

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

The Company did not have a significant amount of mortgage loans modified during both the three months ended March 31, 2026 and 2025.

Other Invested Assets

8 unchanged sentences

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

September 30, 2025 December 31, 2024

March 31, 2026

December 31, 2025

(In millions)

Fixed maturity securities

Derivatives 246 469

Other ( 9 ) ( 12 )

Subtotal ( 4,726 ) ( 7,010 )

Amounts allocated from:

3 unchanged sentences

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

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

(In millions)

4 unchanged sentences

Deferred income tax benefit (expense)

Balance at September 30, 2025 $ ( 3,305 )

Balance at March 31, 2026

Change in net unrealized investment gains (losses)

1 unchanged sentence

There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S.

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

government and its agencies, at both March 31, 2026 and December 31, 2025.

Securities Lending

Elements of the securities lending program are presented below at:

September 30, 2025 December 31, 2024

March 31, 2026

December 31, 2025

(In millions)

11 unchanged sentences

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

September 30, 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

March 31, 2026

December 31, 2025

1 Month or Less

1 to 6 Months

1 Month or Less

1 to 6 Months

(In millions)

government and agency

corporate — 293 — 293 — 248 — 248

Foreign corporate

Foreign government

Total $ 389 $ 1,931 $ 951 $ 3,271 $ 490 $ 1,834 $ 886 $ 3,210

_______________

1 unchanged sentence

If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized in normal market conditions, or both.

The estimated fair value of the securities on loan related to the cash collateral on open at September 30, 2025 was $ 379 million, primarily comprised of U.S.

The estimated fair value of the securities on loan related to the cash collateral on open at March 31, 2026 was $ 314 million, primarily comprised of U.S.

government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement.

2 unchanged sentences

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 September 30, 2025.

government and agency securities and cash and cash equivalents at March 31, 2026.

If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company.

1 unchanged sentence

Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at:

September 30, 2025 December 31, 2024

March 31, 2026

December 31, 2025

(In millions)

4 unchanged sentences

_______________

(1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $ 143 million and $ 68 million of the assets on deposit represents restricted cash and cash equivalents at September 30, 2025 and December 31, 2024, respectively.

(2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $ 536 million and $ 334 million of the assets held in trust balance represents restricted cash and cash equivalents at September 30, 2025 and December 31, 2024, respectively.

(1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $ 112 million and $ 126 million of the assets on deposit represents restricted cash and cash equivalents at March 31, 2026 and December 31, 2025, respectively.

(2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $ 116 million and $ 331 million of the assets held in trust balance represents restricted cash and cash equivalents at March 31, 2026 and December 31, 2025, respectively.

(3) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3 of the Notes to the Consolidated Financial Statements included in the 2025 Annual Report) and derivative transactions (see Note 8).

See “— Securities Lending” for information regarding securities on loan.

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

In addition, the Company’s investment in FHLB common stock, which is considered restricted until redeemed by the issuer, was $ 217 million and $ 218 million at redemption value at March 31, 2026 and December 31, 2025, respectively.

Brighthouse Financial, Inc.

7 unchanged sentences

In addition, the evaluation of whether a legal entity is a VIE and if the Company is a primary beneficiary includes a review of the capital structure of the VIE, the related contractual relationships and terms, the nature of the operations and purpose of the VIE, the nature of the VIE interests issued and the Company’s involvement with the entity.

There were no material VIEs for which the Company has concluded that it is the primary beneficiary at either September 30, 2025 or December 31, 2024.

There were no material VIEs for which the Company has concluded that it is the primary beneficiary at either March 31, 2026 or December 31, 2025.

The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at:

September 30, 2025 December 31, 2024

March 31, 2026

December 31, 2025

Carrying Amount

5 unchanged sentences

Limited partnerships and LLCs

Total $ 17,879 $ 19,503 $ 18,611 $ 20,752

The Company’s investments in unconsolidated VIEs are described below.

21 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

(In millions)

2 unchanged sentences

Trading securities (1)

Equity securities — 1 1 3

Mortgage loans

Policy loans 16 18 53 51

Limited partnerships and LLCs (2)

108 55 259 228

Cash, cash equivalents and short-term investments

Other 29 25 81 76

Total investment income 1,345

2 unchanged sentences

_______________

(1) Investment gains (losses) were $ 7 million related to trading securities still held for both the three months and nine months ended September 30, 2025.

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

(2) Includes net investment income pertaining to other limited partnership interests of $ 102 million and $ 221 million for the three months and nine months ended September 30, 2025, respectively, and $ 64 million and $ 259 million for the three months and nine months ended September 30, 2024, respectively.

(1) Investment gains (losses) related to trading securities still held were ($ 10 ) million and $ 6 million for the three months ended March 31, 2026 and 2025, respectively.

(2) Includes net investment income pertaining to other limited partnership interests of $ 64 million and $ 56 million for the three months ended March 31, 2026 and 2025, respectively.

Net Investment Gains (Losses)

2 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

(In millions)

4 unchanged sentences

Total net investment gains (losses)

$ 48 $ ( 60 ) $ ( 74 ) $ ( 222 )

_______________

(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 three months and nine months ended September 30, 2025.

(2) Gains (losses) from foreign currency transactions included within net investment gains (losses) were not significant for the three months and nine months ended September 30, 2025 and 2024.

Gains (losses) from foreign currency transactions included within net investment gains (losses) were not significant for both the three months ended March 31, 2026 and 2025.

Brighthouse Financial, Inc.

5 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

(In millions)

Proceeds $ 357 $ 320 $ 1,330 $ 2,175

Gross investment gains

2 unchanged sentences

Accounting for Derivatives

See Notes 1 and 10 of the Notes to the Consolidated Financial Statements included in the 2024 Annual Report for a description of the Company’s accounting policies for derivatives and the fair value hierarchy for derivatives.

See Notes 1 and 10 of the Notes to the Consolidated Financial Statements included in the 2025 Annual Report for a description of the Company’s accounting policies for derivatives and the fair value hierarchy for derivatives and the related valuation methodologies.

Types of Derivative Instruments and 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.

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 stand-alone 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”).

Commonly used derivative instruments include, but are not necessarily limited to:

13 unchanged sentences

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

September 30, 2025 December 31, 2024

Primary Underlying Risk Exposure Gross Notional Amount

Estimated Fair Value Gross Notional Amount

March 31, 2026

December 31, 2025

Primary Underlying Risk Exposure

Gross Notional Amount

Estimated Fair Value

Assets Liabilities Assets Liabilities

Gross Notional Amount

Estimated Fair Value

(In millions)

3 unchanged sentences

Interest rate

Foreign currency swaps Foreign currency exchange rate 3,776 300 89 3,823 439 25

Foreign currency swaps

Foreign currency exchange rate

Total qualifying hedges 4,232

Derivatives Not Designated or Not Qualifying as Hedging Instruments:

Interest rate swaps Interest rate 18,734 155 241 69,303 131 444

Interest rate floors Interest rate 8,000 1 32 8,000 1 30

Interest rate caps Interest rate 5,350 1 15 7,850 14 14

Interest rate futures Interest rate — — — 171 — —

Interest rate options Interest rate 24,300 6 466 23,060 11 371

Interest rate forwards Interest rate 23,153 125 1,213 16,352 121 1,876

Foreign currency swaps Foreign currency exchange rate 597 79 4 685 113 —

Foreign currency forwards Foreign currency exchange rate 411 4 — 386 12 —

Credit default swaps — written Credit 478 11 — 780 19 —

Equity futures Equity market 1,318 12 — 316 — 1

Equity index options Equity market 123,469 4,208 1,497 39,897 1,722 1,041

Equity total return swaps Equity market 136,719 2,798 2,990 106,301 1,543 1,446

Total non-designated or non-qualifying derivatives 342,529 7,400 6,458 273,101 3,687 5,223

Total $ 346,805 $ 7,700 $ 6,551 $ 277,424 $ 4,135 $ 5,248

Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both September 30, 2025 and December 31, 2024.

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

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

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

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

Brighthouse Financial, Inc.

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

Derivatives (continued)

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

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)

Three Months Ended September 30, 2025

Derivatives Designated as Hedging Instruments:

Cash flow hedges:

Interest rate swaps

Interest rate

Foreign currency exchange rate ( 4 ) 4 11 — 55

Total cash flow hedges ( 4 ) 4 12 1 54

Derivatives Not Designated or Not Qualifying as Hedging Instruments:

Interest rate floors

Interest rate

Foreign currency exchange rate 18 ( 5 ) — — —

Credit 3 — — — —

Equity market 1,262 — — — —

Embedded ( 1,756 ) — — — —

Total non-qualifying hedges ( 405 ) ( 5 ) — — —

Total $ ( 409 ) $ ( 1 ) $ 12 $ 1 $ 54

Three Months Ended September 30, 2024

Derivatives Designated as Hedging Instruments:

Cash flow hedges:

Interest rate caps

Interest rate

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

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

Derivatives Not Designated or Not Qualifying as Hedging Instruments:

Interest rate options

Interest rate

Interest rate forwards

Interest rate

Foreign currency swaps

Foreign currency exchange rate

Credit 5 — — — —

Foreign currency forwards

Foreign currency exchange rate

Credit default swaps — written

Equity futures

Equity market

Embedded ( 1,064 ) — — — —

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

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

Equity index options

Equity market

Equity total return swaps

Equity market

Total non-designated or non-qualifying derivatives 346,738

Brighthouse Financial, Inc.

1 unchanged sentence

Derivatives (continued)

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

Net Derivative Gains (Losses) Recognized for Derivatives

Net Derivative Gains (Losses) Recognized for Hedged Items

Net Investment Income

Policyholder Benefits and Claims

Amount of Gains (Losses) Deferred in AOCI

(In millions)

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Derivatives Designated as Hedging Instruments:

6 unchanged sentences

Foreign currency exchange rate

Credit 10 — — — —

Equity market

Embedded ( 2,740 ) — — — —

Total non-qualifying hedges

Total $ ( 1,346 ) $ 10 $ 34 $ 3 $ ( 219 )

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Derivatives Designated as Hedging Instruments:

6 unchanged sentences

Foreign currency exchange rate

Credit 12 — — — —

Equity market

Embedded ( 3,664 ) — — — —

Total non-qualifying hedges

Total $ ( 2,673 ) $ ( 3 ) $ 38 $ 6 $ ( 22 )

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

At September 30, 2025 and December 31, 2024, the balance in AOCI associated with cash flow hedges was $ 246 million and $ 469 million, respectively.

At March 31, 2026 and December 31, 2025, the Company held no qualified derivatives hedging exposure to future cash flows for forecasted asset purchases.

At March 31, 2026 and December 31, 2025, the balance in AOCI associated with cash flow hedges was $ 323 million and $ 224 million, respectively.

Credit Derivatives

5 unchanged sentences

The estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps were as follows at:

September 30, 2025 December 31, 2024

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

March 31, 2026

December 31, 2025

Rating Agency Designation of Referenced Credit Obligations (1)

Estimated Fair Value of Credit Default Swaps

Maximum Amount of Future Payments under Credit Default Swaps

4 unchanged sentences

(Dollars in millions)

Aaa/Aa/A $ 2 $ 100 2.0 $ 2 $ 100 2.7

Baa 8 350 5.2 7 300 4.5

Ba 1 24 1.2 10 376 4.8

Caa and Lower — 4 0.2 — 4 1.0

Total $ 11 $ 478 4.3 $ 19 $ 780 4.4

_______________

17 unchanged sentences

Gross Amounts Not Offset on the Consolidated Balance Sheets

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

Gross Amount Recognized

Financial Instruments (1)

Collateral Received/Pledged (2)

Securities Collateral Received/Pledged (3)

Net Amount After Securities Collateral

(In millions)

September 30, 2025

March 31, 2026

Derivative assets

8 unchanged sentences

Amounts do not include excess of collateral pledged or received.

The Company does not offset recognized derivative assets and liabilities subject to master netting agreements on the consolidated balance sheets except for derivative instruments executed with the same counterparty but under different credit support annexes.

As of March 31, 2026, $ 1.5 billion of recognized derivative assets were offset by $ 1.5 billion of recognized derivative liabilities on the consolidated balance sheets.

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.

1 unchanged sentence

The aggregate estimated fair values of derivatives in a net liability position containing such credit-contingent provisions and the aggregate estimated fair value of assets posted as collateral for such instruments were as follows at:

September 30, 2025 December 31, 2024

March 31, 2026

December 31, 2025

(In millions)

6 unchanged sentences

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 over-the-counter (“OTC”) bilateral contracts between two counterparties (“OTC-bilateral”) derivative transactions to third-party custodians.

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

Brighthouse Financial, Inc.

4 unchanged sentences

Investments that do not have a readily determinable fair value and are measured at net asset value (or equivalent) as a practical expedient to estimated fair value are excluded from the fair value hierarchy.

September 30, 2025

Fair Value Hierarchy Total Estimated Fair Value

Level 1 Level 2 Level 3

March 31, 2026

Fair Value Hierarchy

Total Estimated Fair Value

(In millions)

Fixed maturity securities:

corporate $ — $ 37,747 $ 582 $ 38,329

Foreign corporate

RMBS — 8,257 20 8,277

government and agency

CMBS — 6,076 20 6,096

ABS — 5,727 278 6,005

State and political subdivision

7 unchanged sentences

Foreign currency exchange rate

Credit — 9 2 11

Equity market

16 unchanged sentences

December 31, 2025

Fair Value Hierarchy Total Estimated Fair Value

Level 1 Level 2 Level 3

Fair Value Hierarchy

Total Estimated Fair Value

(In millions)

Fixed maturity securities:

corporate $ — $ 36,427 $ 696 $ 37,123

Foreign corporate

RMBS — 7,270 17 7,287

government and agency

CMBS — 6,330 26 6,356

ABS — 5,990 322 6,312

State and political subdivision

7 unchanged sentences

Foreign currency exchange rate

Credit — 17 2 19

Equity market

15 unchanged sentences

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.

(2) Embedded derivative assets on index-linked annuities relate to reinsurance and are reported in premiums and other receivables.

Embedded derivative liabilities on index-linked annuities are reported in policyholder account balances.

18 unchanged sentences

Price adjustments are applied if prices or quotes received from independent pricing services or brokers are not considered reflective of market activity or representative of estimated fair value.

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

The Company did not have significant price adjustments during the three months ended March 31, 2026.

Determination of Fair Value

22 unchanged sentences

Fair value is determined using third-party commercial pricing services, with the primary input being quoted prices in markets that are not active.

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 OTC market.

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

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

53 unchanged sentences

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

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

Valuation Techniques Significant Unobservable Inputs

March 31, 2026

December 31, 2025

Impact of Increase in Input on Estimated Fair Value

Valuation Techniques

Significant Unobservable Inputs

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)

• Mortality rates 0.04 %

• Lapse rates 1.00 %

• Utilization rates 0.00 %

• Withdrawal rates 0.00 %

• Long-term equity volatilities 11.80 % - 31.71 % 12.22 % - 37.04 % Increase (5)

• Nonperformance risk spread 0.45 % - 1.02 % 0.20 % - 1.19 % Decrease (6)

• Long-term equity volatilities 11.82 %

• Nonperformance risk spread 0.64 %

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)

• Option pricing techniques • Mortality rates 0.03 %

• Lapse rates 0.40 %

• Withdrawal rates 0.50 %

• Nonperformance risk spread 0.28 % - 1.55 % 0.30 % - 1.63 % Decrease (6)

• Nonperformance risk spread 0.70 %

_______________

33 unchanged sentences

Fixed Maturity Securities

Corporate (1) Structured Securities Foreign

Government Trading

Securities Short-term

Investments Net

Derivatives (2) Embedded Derivatives on Index-Linked Annuities

(In millions)

Three Months Ended September 30, 2025

Balance, beginning of period

$ 768 $ 406 $ 24 $ 3 $ 6 $ — $ 8 $ ( 11,566 )

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

2 3 — — — — — ( 1,756 )

Total realized/unrealized gains (losses) included in AOCI

3 ( 1 ) — — — — — —

Purchases (5)

107 53 — — — 5 — —

( 119 ) ( 34 ) — — — — — —

Issuances (5)

— — — — — — — —

Settlements (5)

— — — — — — — 631

Transfers into Level 3 (6)

— — — — — — — —

Transfers out of Level 3 (6)

( 59 ) ( 109 ) — ( 3 ) — — — —

Balance, end of period $ 702 $ 318 $ 24 $ — $ 6 $ 5 $ 8 $ ( 12,691 )

Three Months Ended September 30, 2024

Balance, beginning of period

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

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

( 23 ) — — — ( 2 ) — — ( 1,064 )

Total realized/unrealized gains (losses) included in AOCI

34 4 2 — — — — —

Purchases (5)

65 105 — — — 2 — —

( 57 ) ( 93 ) — — — — — —

Issuances (5)

— — — — — — — —

Settlements (5)

— — — — — — — 120

Transfers into Level 3 (6)

33 — — — — — — —

Transfers out of Level 3 (6)

( 325 ) ( 126 ) — — — — — —

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

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

$ — $ — $ — $ — $ — $ — $ — $ ( 2,088 )

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

$ 1 $ 2 $ — $ — $ — $ — $ — $ —

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

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

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

$ — $ 4 $ 2 $ — $ — $ — $ — $ —

Brighthouse Financial, Inc.

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

Fair Value (continued)

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

Fixed Maturity Securities

Corporate (1) Structured Securities Foreign Government

Trading Securities

Equity Securities

2 unchanged sentences

(In millions)

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Balance, beginning of period

16 unchanged sentences

Balance, end of period $ 899 $ 381 $ 24 $ 6 $ — $ 7 $ ( 10,597 )

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Balance, beginning of period

16 unchanged sentences

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

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

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2026 (7)

$ ( 6 ) $ ( 10 ) $ — $ — $ — $ 1 $ 436

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

Changes in unrealized gains (losses) included in OCI for the instruments still held as of March 31, 2026 (7)

$ 2 $ 8 $ — $ — $ — $ — $ —

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

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

$ 24 $ — $ — $ ( 1 ) $ — $ — $ 950

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

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

$ ( 19 ) $ ( 2 ) $ 1 $ — $ — $ — $ —

7 unchanged sentences

Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(4) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.

Brighthouse Financial, Inc.

1 unchanged sentence

Fair Value (continued)

(4) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.

(5) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward.

11 unchanged sentences

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:

September 30, 2025

March 31, 2026

Fair Value Hierarchy

Carrying Value

Level 1 Level 2 Level 3 Total Estimated Fair Value

Total Estimated Fair Value

(In millions)

Mortgage loans

Policy loans $ 1,439 $ — $ 548 $ 1,012 $ 1,560

Other invested assets

10 unchanged sentences

Carrying Value

Level 1 Level 2 Level 3 Total Estimated Fair Value

Total Estimated Fair Value

(In millions)

Mortgage loans

Policy loans $ 2,024 $ — $ 1,161 $ 943 $ 2,104

Other invested assets

5 unchanged sentences

Preferred Stock

Preferred stock shares authorized, issued and outstanding were as follows at both September 30, 2025 and December 31, 2024:

Shares Authorized Shares Issued Shares Outstanding

Preferred stock shares authorized, issued and outstanding were as follows at both March 31, 2026 and December 31, 2025:

Shares Authorized

Shares Issued

Shares Outstanding

6.600 % Non-Cumulative Preferred Stock, Series A

17,000 17,000 17,000

6.750 % Non-Cumulative Preferred Stock, Series B

16,100 16,100 16,100

5.375 % Non-Cumulative Preferred Stock, Series C

23,000 23,000 23,000

4.625 % Non-Cumulative Preferred Stock, Series D

14,000 14,000 14,000

Not designated

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

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

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

Three Months Ended March 31,

Series Per Share Aggregate Per Share Aggregate

(In millions, except per share data)

A $ 412.50 $ 7 $ 412.50 $ 7 $ 1,237.50 $ 21 $ 1,237.50 $ 21

B $ 421.88 7 $ 421.88 7 $ 1,265.64 21 $ 1,265.64 21

C $ 335.94 8 $ 335.94 8 $ 1,007.82 23 $ 1,007.82 23

D $ 289.06 4 $ 289.06 4 $ 867.18 12 $ 867.18 12

Total $ 26 $ 26 $ 77 $ 77

$ 412.50 $ 7 $ 412.50 $ 7

$ 421.88 7 $ 421.88 7

$ 335.94 8 $ 335.94 8

$ 289.06 4 $ 289.06 4

Common Stock Repurchase Program

During the nine months ended September 30, 2025 and 2024, BHF repurchased 1,844,396 and 4,062,047 shares, respectively, of its common stock through open market purchases, pursuant to Rule 10b5-1 plans, for $ 102 million and $ 190 million, respectively.

At September 30, 2025, BHF had $ 441 million remaining under its common stock repurchase program.

The Company did not repurchase any shares of its common stock during the three months ended March 31, 2026.

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

At March 31, 2026, 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.

Brighthouse Financial, Inc.

3 unchanged sentences

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

Three Months Ended September 30, 2025

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

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

Three Months Ended March 31, 2026

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

Unrealized Gains (Losses) on Derivatives

Changes in Nonperformance Risk on Market Risk Benefits

Changes in Discount Rates on the Liability for Future Policy Benefits

(In millions)

Balance at June 30, 2025

Balance at December 31, 2025

$ ( 1,255 ) $ 888 $

OCI before reclassifications

Deferred income tax benefit (expense) (3) ( 121 ) ( 11 ) 34 40 2 ( 56 )

AOCI before reclassifications, net of income tax ( 3,513 ) 192 ( 1,530 ) 835 ( 22 ) ( 4,038 )

Amounts reclassified from AOCI 17 3 — — 2 22

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

Amounts reclassified from AOCI, net of income tax 13 3 — — 2 18

Balance at September 30, 2025

110 199 ( 7 )

Three Months Ended September 30, 2024

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

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

(In millions)

Balance at June 30, 2024

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

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

Deferred income tax benefit (expense) (3)

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

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

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

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

Balance at September 30, 2024 $ ( 3,123 ) $ 249 $ ( 1,828 ) $ 612 $ ( 37 ) $ ( 4,127 )

Nine Months Ended September 30, 2025

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

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

(In millions)

Balance at December 31, 2024

( 23 ) ( 42 ) 2

OCI before reclassifications 2,016 ( 219 ) 92 ( 397 ) 42 1,534

Deferred income tax benefit (expense) (3) ( 423 ) 46 ( 19 ) 83 ( 8 ) ( 321 )

AOCI before reclassifications, net of income tax

2 unchanged sentences

Amounts reclassified from AOCI, net of income tax

Balance at September 30, 2025

$ ( 3,500 ) $ 195 $ ( 1,530 ) $ 835 $ ( 20 ) $ ( 4,020 )

Brighthouse Financial, Inc.

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

Equity (continued)

Nine Months Ended September 30, 2024

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

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

Balance at March 31, 2026

Three Months Ended March 31, 2025

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

Unrealized Gains (Losses) on Derivatives

Changes in Nonperformance Risk on Market Risk Benefits

Changes in Discount Rates on the Liability for Future Policy Benefits

(In millions)

2 unchanged sentences

OCI before reclassifications

( 27 ) ( 155 ) 15

Deferred income tax benefit (expense) (3)

3 unchanged sentences

Amounts reclassified from AOCI, net of income tax

Balance at September 30, 2024

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

Balance at March 31, 2025

__________________

3 unchanged sentences

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

Brighthouse Financial, Inc.

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

Equity (continued)

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

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

AOCI Components

Amounts Reclassified from AOCI

Consolidated Statements of Operations and Comprehensive Income (Loss) Locations

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

(In millions)

Net unrealized investment gains (losses):

Net unrealized investment gains (losses) $ ( 17 ) $ ( 22 ) $ ( 54 ) $ ( 134 ) Net investment gains (losses)

Net unrealized investment gains (losses) — 3 ( 2 ) ( 6 ) Net derivative gains (losses)

Net unrealized investment gains (losses)

$ ( 23 ) $ ( 25 ) Net investment gains (losses)

Net unrealized investment gains (losses)

( 2 ) ( 6 ) Net derivative gains (losses)

Net unrealized investment gains (losses), before income tax

2 unchanged sentences

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

Interest rate swaps — ( 1 ) 3 2 Net derivative gains (losses)

Interest rate swaps 1 1 2 2 Net investment income

Foreign currency swaps ( 4 ) 8 ( 1 ) 9 Net derivative gains (losses)

Interest rate swaps

— 3 Net derivative gains (losses)

Interest rate swaps

1 1 Net investment income

Foreign currency swaps

( 2 ) 3 Net derivative gains (losses)

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

7 unchanged sentences

Total reclassifications, net of income tax

$ ( 22 ) $ ( 20 )

Brighthouse Financial, Inc.

8 unchanged sentences

The passage of time reflects the satisfaction of the Company’s performance obligations to the Funds and is used to recognize revenue associated with 12b-1 fees.

Other revenues included 12b-1 fees of $ 66 million and $ 195 million for the three months and nine months ended September 30, 2025, respectively, and $ 68 million and $ 204 million for the three months and nine months ended September 30, 2024, respectively, of which substantially all were reported in the Annuities segment.

Other revenues included 12b-1 fees of $ 64 million and $ 65 million for the three months ended March 31, 2026 and 2025, respectively, of which substantially all were reported in the Annuities segment.

Other Expenses

1 unchanged sentence

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

(In millions)

Compensation $ 100 $ 102 $ 333 $ 314

Contracted services and other labor costs

4 unchanged sentences

Interest expense on debt

Other 17 17 54 67

Total other expenses

6 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

(In millions, except share and per share data)

4 unchanged sentences

Earnings per common share:

Basic $ 7.93 $ 2.49 $ 3.80 $ ( 5.82 )

Diluted $ 7.89 $ 2.47 $ 3.78 $ ( 5.82 )

For the three months ended September 30, 2025 and 2024, weighted average shares used for calculating diluted earnings per common share excludes 166,769 and 187,371 shares, respectively, underlying out-of-the-money stock options, as the inclusion of such shares would be antidilutive under the treasury stock method to the earnings per common share calculation due to the average share price for the three months ended September 30, 2025 and 2024.

For the nine months ended September 30, 2025, weighted average shares used for calculating diluted earnings per common share includes 113,531 shares underlying in-the-money stock options.

For the nine months ended September 30, 2024, basic loss per common share equaled diluted loss per common share.

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

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 of the Notes to the Consolidated Financial Statements included in the 2025 Annual Report for further information on share-based compensation plans.

For both the three months ended March 31, 2026 and 2025, 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.

Contingencies, Commitments and Guarantees

17 unchanged sentences

The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated.

It is possible that some matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at September 30, 2025.

It is possible that some matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at March 31, 2026.

Matters as to Which an Estimate Can Be Made

1 unchanged sentence

For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made.

In addition to amounts accrued for probable and reasonably estimable losses, as of September 30, 2025, the Company estimates the aggregate range of reasonably possible losses to be up to approximately $ 10 million.

In addition to amounts accrued for probable and reasonably estimable losses, as of March 31, 2026, 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

36 unchanged sentences

“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.

26 unchanged sentences

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

As of September 30, 2025, the Company estimates the range of reasonably possible losses in excess of the amounts accrued for certain other loss contingencies to be from zero up to approximately $ 100 million relating to certain tax and reinsurance matters, as described above.

As of March 31, 2026, 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.

Mortgage Loan Commitments

The Company commits to lend funds under mortgage loan commitments.

The amounts of these mortgage loan commitments were $ 325 million and $ 271 million at September 30, 2025 and December 31, 2024, respectively.

The amounts of these mortgage loan commitments were $ 418 million and $ 436 million at March 31, 2026 and December 31, 2025, respectively.

Commitments to Fund Partnership Investments, Bank Credit Facilities and Private Corporate Bond Investments

The Company commits to fund partnership investments and to lend funds under bank credit facilities and private corporate bond investments.

The amounts of these unfunded commitments were $ 1.6 billion and $ 1.7 billion at September 30, 2025 and December 31, 2024, respectively.

The amounts of these unfunded commitments were $ 1.4 billion at both March 31, 2026 and December 31, 2025.

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.

5 unchanged sentences

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

Brighthouse Financial, Inc.

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

Contingencies, Commitments and Guarantees (continued)

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

1 unchanged sentence

Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future.

The Company did no t have any liabilities recorded for indemnities, guarantees and commitments at both September 30, 2025 and December 31, 2024 .

Subsequent Event

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 (“Parent”), Aquarian Beacon Merger Sub Inc., a Delaware corporation and an indirect wholly-owned subsidiary of Parent (“Merger Sub”), and Aquarian Holdings LLC, a Delaware limited liability company (“Aquarian Holdings”), 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 Parent (the “Merger”).

Pursuant to the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each share of BHF’s 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 consummation of the Merger is subject to the satisfaction or waiver of customary closing conditions, including, among others, the adoption of the Merger Agreement by the affirmative vote of the holders of a majority of the outstanding shares of BHF common stock entitled to vote thereon at a meeting of BHF stockholders and the receipt of certain regulatory approvals, including from insurance regulators in Delaware, New York and Massachusetts.

Parent’s and Merger Sub’s obligations are also conditioned upon the absence of a Company Material Adverse Effect (as defined in the Merger Agreement) and the absence of a Burdensome Condition (as defined in the Merger Agreement).

The Merger Agreement also contains customary representations, warranties and covenants by each of Parent, Merger Sub, Aquarian Holdings and BHF, including, among others, covenants by BHF to use its reasonable best efforts to conduct its business in the ordinary course consistent with past practice and to refrain from taking certain actions prior to the Effective Time, in each case except with Parent’s consent.

The Company did no t have any liabilities recorded for indemnities, guarantees and commitments at both March 31, 2026 and December 31, 2025 .

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements