What changed in this filing

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Item 1. Financial Statements

2026-08-06 compared with 2026-05-07 · 336 added, 130 removed, 1665 unchanged (22% of the section changed)

2 unchanged sentences

Interim Condensed Consolidated Balance Sheets

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

June 30, 2026 (Unaudited) and December 31, 2025

(In millions, except share and per share data)

March 31, 2026 December 31, 2025

June 30, 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 Ended March 31, 2026 and 2025 (Unaudited)

For the Three Months and Six Months Ended June 30, 2026 and 2025 (Unaudited)

(In millions, except per share data)

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Premiums $ 165 $ 166 $ 333 $ 352

6 unchanged sentences

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

591 711 1,228 1,360

Interest credited to policyholder account balances 531 537 1,024 1,098

21 unchanged sentences

Interim Condensed Consolidated Statements of Equity

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

For the Three Months and Six Months Ended June 30, 2026 and 2025 (Unaudited)

(In millions)

9 unchanged sentences

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

Treasury stock acquired in connection with share repurchases — — —

Share-based compensation — 3 ( 2 ) 1 1

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

Change in noncontrolling interests — — —

Net income (loss) 981 981 — 981

Other comprehensive income (loss), net of income tax 30 30 30

Balance at June 30, 2026 $ — $ 1 $ 13,847 $ ( 471 ) $ ( 2,701 ) $ ( 4,126 ) $ 6,550 $ 65 $ 6,615

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

8 unchanged sentences

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

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

Share-based compensation — 4 — 4 4

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

Change in noncontrolling interests — — —

Net income (loss) 85 85 — 85

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

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

See accompanying notes to the interim condensed consolidated financial statements.

1 unchanged sentence

Interim Condensed Consolidated Statements of Cash Flows

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

For the Six Months Ended June 30, 2026 and 2025 (Unaudited)

(In millions)

Three Months Ended

Six Months Ended

Net cash provided by (used in) operating activities $ ( 652 ) $ 145

66 unchanged sentences

The Company considers the applicability and impact of all ASUs.

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

There were no significant ASUs adopted during the period ended June 30, 2026.

Brighthouse Financial, Inc.

51 unchanged sentences

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

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Corporate & Other

24 unchanged sentences

Segment Information (continued)

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Corporate & Other

21 unchanged sentences

Interest revenue

Brighthouse Financial, Inc.

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

Segment Information (continued)

Six Months Ended June 30, 2026

Corporate & Other

(In millions)

Total revenues

Revenues excluded from adjusted earnings (1) ( 1,078 )

Segment expenses:

Policyholder benefits and claims 243

Interest credited to policyholder account balances, excluding market value adjustments 679

Amortization of DAC and VOBA 274

Interest expense on debt —

Other expenses (2)

Provision for income tax expense (benefit)

Net income (loss) attributable to noncontrolling interests

Preferred stock dividends

Adjusted earnings (loss) $

Adjustments for:

Net investment gains (losses)

Investment gains (losses) on trading securities

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

Change in market risk benefits

Market value adjustments

Provision for income tax (expense) benefit

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

Interest revenue

Brighthouse Financial, Inc.

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

Segment Information (continued)

Six Months Ended June 30, 2025

Corporate & Other

(In millions)

Total revenues

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

Segment expenses:

Policyholder benefits and claims 208 400 752 —

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

Amortization of DAC and VOBA 253 44 — —

Interest expense on debt

Other expenses (2) 705 98 65 31

Provision for income tax expense (benefit)

Net income (loss) attributable to noncontrolling interests

Preferred stock dividends

Adjusted earnings (loss) $

Adjustments for:

Net investment gains (losses)

Investment gains (losses) on trading securities

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

Change in market risk benefits

Market value adjustments

Provision for income tax (expense) benefit

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

Interest revenue

_______________

2 unchanged sentences

Total assets by segment were as follows at:

March 31, 2026

June 30, 2026

December 31, 2025

6 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

(In millions)

Annuity products

$ 578 $ 577 $

Life insurance products

1 unchanged sentence

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

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

Revenues derived from any individual customer did not exceed 10% of premiums, universal life and investment-type product policy fees and other revenues for the three months and six months ended June 30, 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:

Three Months Ended March 31,

Six Months Ended June 30,

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

3 unchanged sentences

Beginning balance at original discount rate

Effect of model refinements

Effect of actual variances from expected experience

31 unchanged sentences

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

Three Months Ended

Six Months Ended

(Dollars in millions)

26 unchanged sentences

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

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

Participating whole life insurance represented 3 % of the Company’s life insurance in-force at both June 30, 2026 and 2025, and 37 % and 39 % of gross traditional life insurance premiums for the six months ended June 30, 2026 and 2025, respectively.

Brighthouse Financial, Inc.

5 unchanged sentences

(Dollars in millions)

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

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

8 unchanged sentences

Weighted-average crediting rate (2) 1.90 % 1.39 % 0.95 % 2.05 % 1.66 % 2.32 %

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

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

24 unchanged sentences

(In millions)

March 31, 2026

June 30, 2026

Annuities (1):

54 unchanged sentences

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

Three Months Ended

Six Months Ended

(Dollars in millions)

16 unchanged sentences

_______________

(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.

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

(1) Amounts represent the sum of MRB assets and MRB liabilities presented on the consolidated balance sheets at June 30, 2026 and 2025, with the exception of $ 43 million and $ 22 million, respectively, of index-linked annuity MRBs not included in this table.

Separate Accounts

1 unchanged sentence

Information regarding separate account liabilities was as follows:

Three Months Ended March 31,

Six Months Ended June 30,

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

9 unchanged sentences

Balance, end of period $ 75,645 $ 7,209 $ 2,521 $ 76,782 $ 6,632 $ 2,399

Brighthouse Financial, Inc.

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

Separate Accounts (continued)

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:

5 unchanged sentences

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(In millions)

5 unchanged sentences

Total aggregate estimated fair value of assets $ 85,691 $ 85,528

Brighthouse Financial, Inc.

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

Separate Accounts (continued)

Net Amount at Risk and Cash Surrender Values

2 unchanged sentences

(In millions)

March 31, 2026

June 30, 2026

Account balances reported in the preceding rollforward tables:

4 unchanged sentences

Cash surrender value $ 9,297 $ 78,548 $ 55,964 $ 12,875 $ 3,937 $ 2,967

March 31, 2025

June 30, 2025

Account balances reported in the preceding rollforward tables:

13 unchanged sentences

(In millions)

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

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

7 unchanged sentences

Balance, end of period $ 2,106 $ 169 $ 1,629 $ 246 $ 337

Three Months Ended March 31, 2025

Six Months Ended June 30, 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:

Three Months Ended March 31,

Six Months Ended June 30,

Variable Annuities Fixed Rate Annuities Variable Annuities Fixed Rate Annuities

10 unchanged sentences

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

Three Months Ended March 31,

Six Months Ended June 30,

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

11 unchanged sentences

Fixed maturity securities by sector were as follows at:

March 31, 2026

June 30, 2026

December 31, 2025

19 unchanged sentences

Total fixed maturity securities

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.

The Company held non-income producing fixed maturity securities with an estimated fair value of $ 10 million and $ 14 million at June 30, 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 March 31, 2026:

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

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

20 unchanged sentences

2,965 4,807 1,328 5,093

Brighthouse Financial, Inc.

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

Investments (continued)

Allowance for Credit Losses for Fixed Maturity Securities

3 unchanged sentences

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.

Brighthouse Financial, Inc.

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

Investments (continued)

Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential.

13 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 $ 697 million and $ 671 million at March 31, 2026 and December 31, 2025, respectively, and is included in accrued investment income.

The accrued interest receivable on fixed maturity securities totaled $ 669 million and $ 671 million at June 30, 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 $ 65 million, relating to 22 securities, at March 31, 2026.

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 21 securities, at June 30, 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

2 unchanged sentences

(In millions)

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

Balance, beginning of period

4 unchanged sentences

Balance, end of period $

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Balance, beginning of period

5 unchanged sentences

_______________

(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)

(1) The Company did not record any write-offs for the six months ended June 30, 2026.

The Company recorded total write-offs of $ 33 million for the six months ended June 30, 2025 .

Mortgage Loans

1 unchanged sentence

Mortgage loans are summarized as follows at:

March 31, 2026

June 30, 2026

December 31, 2025

4 unchanged sentences

_______________

(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.

(1) Purchases of mortgage loans from third parties were $ 426 million and $ 721 million for the three months and six months ended June 30, 2026, respectively, and $ 379 million and $ 557 million for the three months and six months ended June 30, 2025, respectively, and were primarily comprised of residential mortgage loans.

Brighthouse Financial, Inc.

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

Investments (continued)

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 $ 126 million and $ 132 million at March 31, 2026 and December 31, 2025, respectively.

The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $ 128 million and $ 132 million at June 30, 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

1 unchanged sentence

(In millions)

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

Balance, beginning of period

2 unchanged sentences

Balance, end of period

Three Months Ended March 31, 2025

Six Months Ended June 30, 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

1 unchanged sentence

(In millions)

March 31, 2026

June 30, 2026

Commercial mortgage loans

36 unchanged sentences

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

March 31, 2026

June 30, 2026

December 31, 2025

13 unchanged sentences

Past Due Mortgage Loans by Portfolio Segment

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

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

March 31, 2026

June 30, 2026

December 31, 2025

9 unchanged sentences

(In millions)

March 31, 2026 $

June 30, 2026 $

December 31, 2025 $

_______________

(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.

(1) The Company had $ 50 million and $ 54 million of mortgage loans in nonaccrual status for which there was no related allowance for credit losses at June 30, 2026 and December 31, 2025, respectively.

Current period investment income on mortgage loans in nonaccrual status was $ 3 million for both the six months ended June 30, 2026 and 2025.

Modified Mortgage Loans by Portfolio Segment

1 unchanged sentence

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

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

The Company did not have a significant amount of mortgage loans modified during both the six months ended June 30, 2026 and 2025.

Other Invested Assets

8 unchanged sentences

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

March 31, 2026

June 30, 2026

December 31, 2025

6 unchanged sentences

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

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

(In millions)

4 unchanged sentences

Deferred income tax benefit (expense)

Balance at March 31, 2026

Balance at June 30, 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 March 31, 2026 and December 31, 2025.

government and its agencies, at both June 30, 2026 and December 31, 2025.

Securities Lending

Elements of the securities lending program are presented below at:

March 31, 2026

June 30, 2026

December 31, 2025

12 unchanged sentences

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

March 31, 2026

June 30, 2026

December 31, 2025

10 unchanged sentences

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

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

The estimated fair value of the securities on loan related to the cash collateral on open at June 30, 2026 was $ 545 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.

1 unchanged sentence

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 March 31, 2026.

and foreign corporate securities, CMBS and non-agency RMBS) with 51 % invested in agency RMBS, U.S.

government and agency securities and cash and cash equivalents at June 30, 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:

March 31, 2026

June 30, 2026

December 31, 2025

5 unchanged sentences

_______________

(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.

(1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $ 142 million and $ 126 million of the assets on deposit represents restricted cash and cash equivalents at June 30, 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 $ 242 million and $ 331 million of the assets held in trust balance represents restricted cash and cash equivalents at June 30, 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 $ 217 million and $ 218 million at redemption value at March 31, 2026 and December 31, 2025, respectively.

In addition, the Company’s investment in FHLB common stock, which is considered restricted until redeemed by the issuer, was $ 232 million and $ 218 million at redemption value at June 30, 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 March 31, 2026 or December 31, 2025.

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

March 31, 2026

June 30, 2026

December 31, 2025

29 unchanged sentences

Three Months Ended

Six Months Ended

(In millions)

2 unchanged sentences

Trading securities (1)

Equity securities

Mortgage loans

5 unchanged sentences

_______________

(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.

(1) Investment gains (losses) related to trading securities still held were $ 2 million and ($ 8 ) million for the three months and six months ended June 30, 2026, respectively, and ($ 6 ) million and less than $ 1 million for the three months and six months ended June 30, 2025, respectively.

(2) Includes net investment income pertaining to other limited partnership interests of $ 5 million and $ 69 million for the three months and six months ended June 30, 2026, respectively, and $ 63 million and $ 119 million for the three months and six months ended June 30, 2025, respectively.

Net Investment Gains (Losses)

2 unchanged sentences

Three Months Ended

Six Months Ended

(In millions)

4 unchanged sentences

Total net investment gains (losses)

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.

Gains (losses) from foreign currency transactions included within net investment gains (losses) were not significant for the three months and six months ended June 30, 2026 and 2025.

Brighthouse Financial, Inc.

5 unchanged sentences

Three Months Ended

Six Months Ended

(In millions)

24 unchanged sentences

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

March 31, 2026

June 30, 2026

December 31, 2025

45 unchanged sentences

(In millions)

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Derivatives Designated as Hedging Instruments:

8 unchanged sentences

Total non-qualifying hedges

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Derivatives Designated as Hedging Instruments:

8 unchanged sentences

Total non-qualifying hedges

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.

Brighthouse Financial, Inc.

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

Derivatives (continued)

Net Derivative Gains (Losses) Recognized for Derivatives

Net Derivative Gains (Losses) Recognized for Hedged Items

Net Investment Income

Policyholder Benefits and Claims

Amount of Gains (Losses) Deferred in AOCI

(In millions)

Six Months Ended June 30, 2026

Derivatives Designated as Hedging Instruments:

Cash flow hedges:

Interest rate

Foreign currency exchange rate

Total cash flow hedges

Derivatives Not Designated or Not Qualifying as Hedging Instruments:

Interest rate

Foreign currency exchange rate

Equity market

Total non-qualifying hedges

Six Months Ended June 30, 2025

Derivatives Designated as Hedging Instruments:

Cash flow hedges:

Interest rate

Foreign currency exchange rate

Total cash flow hedges

Derivatives Not Designated or Not Qualifying as Hedging Instruments:

Interest rate

Foreign currency exchange rate

Equity market

Total non-qualifying hedges

At June 30, 2026 and December 31, 2025, the Company held no qualified derivatives hedging exposure to future cash flows for forecasted asset purchases.

At June 30, 2026 and December 31, 2025, the balance in AOCI associated with cash flow hedges was $ 264 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:

March 31, 2026

June 30, 2026

December 31, 2025

32 unchanged sentences

(In millions)

March 31, 2026

June 30, 2026

Derivative assets

9 unchanged sentences

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.

As of June 30, 2026, $ 2.4 billion of recognized derivative assets were offset by $ 2.4 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:

March 31, 2026

June 30, 2026

December 31, 2025

14 unchanged sentences

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

March 31, 2026

June 30, 2026

Fair Value Hierarchy

84 unchanged sentences

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

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

The Company did not have significant price adjustments during the six months ended June 30, 2026.

Determination of Fair Value

77 unchanged sentences

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

March 31, 2026

June 30, 2026

December 31, 2025

51 unchanged sentences

Fixed Maturity Securities

Corporate (1) Structured Securities Foreign

Government Trading

Securities Short-term

Investments Net

Derivatives (2) Embedded Derivatives on Index-Linked Annuities

(In millions)

Three Months Ended June 30, 2026

Balance, beginning of period

$ 899 $ 381 $ 24 $ — $ 6 $ — $ 7 $ ( 10,597 )

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

— 1 — — — — — ( 3,330 )

Total realized/unrealized gains (losses) included in AOCI

( 20 ) ( 2 ) — — — — — —

Purchases (5)

132 83 — — — — — —

( 140 ) ( 29 ) — — — — — —

Issuances (5)

— — — — — — — —

Settlements (5)

— — — — — — — 984

Transfers into Level 3 (6)

188 — — — — — — —

Transfers out of Level 3 (6)

( 160 ) ( 162 ) — — — — — —

Balance, end of period $ 899 $ 272 $ 24 $ — $ 6 $ — $ 7 $ ( 12,943 )

Three Months Ended June 30, 2025

Balance, beginning of period

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

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

( 38 ) — — — — — ( 1 ) ( 2,161 )

Total realized/unrealized gains (losses) included in AOCI

37 ( 3 ) 2 — — — — —

Purchases (5)

63 127 — 3 — — — —

( 10 ) ( 10 ) — — ( 8 ) ( 2 ) — —

Issuances (5)

— — — — — — — —

Settlements (5)

— — — — — — — 520

Transfers into Level 3 (6)

54 — — — — — — —

Transfers out of Level 3 (6)

( 4 ) ( 48 ) — — — — — —

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

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2026 (7)

$ ( 1 ) $ — $ — $ — $ — $ — $ — $ ( 4,176 )

Changes in unrealized gains (losses) included in OCI for the instruments still held as of June 30, 2026 (7)

$ ( 11 ) $ ( 1 ) $ — $ — $ — $ — $ — $ —

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

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

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

$ 4 $ 7 $ 2 $ — $ — $ — $ ( 1 ) $ —

Brighthouse Financial, Inc.

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

Fair Value (continued)

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

Fixed Maturity Securities

Corporate (1) Structured Securities Foreign Government

Trading Securities

Equity Securities

2 unchanged sentences

(In millions)

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

Balance, beginning of period

16 unchanged sentences

Balance, end of period $ 899 $ 272 $ 24 $ — $ 6 $ — $ 7 $ ( 12,943 )

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Balance, beginning of period

16 unchanged sentences

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

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

Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2026 (7)

$ ( 7 ) $ ( 10 ) $ — $ — $ — $ — $ — $ ( 3,364 )

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

Changes in unrealized gains (losses) included in OCI for the instruments still held as of June 30, 2026 (7)

$ ( 17 ) $ 8 $ — $ — $ — $ — $ — $ —

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

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

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

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

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

$ 11 $ ( 5 ) $ 3 $ — $ — $ — $ — $ —

7 unchanged sentences

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

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

Brighthouse Financial, Inc.

1 unchanged sentence

Fair Value (continued)

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

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

11 unchanged sentences

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

March 31, 2026

June 30, 2026

Fair Value Hierarchy

25 unchanged sentences

Preferred Stock

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

Preferred stock shares authorized, issued and outstanding were as follows at both June 30, 2026 and December 31, 2025:

Shares Authorized

7 unchanged sentences

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

Three Months Ended March 31,

Series Per Share Aggregate Per Share Aggregate

Three Months Ended June 30,

Six Months Ended June 30,

2026 2025 2026 2025

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

(In millions, except per share data)

3 unchanged sentences

$ 289.06 4 $ 289.06 4 $ 578.12 8 $ 578.12 8

$ 25 $ 25 $ 51 $ 51

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.

The Company did not repurchase any shares of its common stock during the six months ended June 30, 2026.

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

At June 30, 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.

4 unchanged sentences

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

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

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

3 unchanged sentences

(In millions)

Balance at March 31, 2026

$ ( 1,168 ) $ 1,045 $

OCI before reclassifications

14 ( 20 ) ( 3 )

Deferred income tax benefit (expense) (3)

AOCI before reclassifications, net of income tax

Amounts reclassified from AOCI

Deferred income tax benefit (expense) (3)

Amounts reclassified from AOCI, net of income tax

Balance at June 30, 2026

Three Months Ended June 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

(In millions)

Balance at March 31, 2025

$ ( 1,625 ) $ 1,027 $

OCI before reclassifications

279 ( 51 ) 31

Deferred income tax benefit (expense) (3)

( 58 ) 10 ( 6 )

AOCI before reclassifications, net of income tax

Amounts reclassified from AOCI

Deferred income tax benefit (expense) (3)

Amounts reclassified from AOCI, net of income tax

Balance at June 30, 2025

Six Months Ended June 30, 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 December 31, 2025

8 unchanged sentences

Amounts reclassified from AOCI, net of income tax

Balance at March 31, 2026

Three Months Ended March 31, 2025

Balance at June 30, 2026

Brighthouse Financial, Inc.

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

Equity (continued)

Six Months Ended June 30, 2025

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

8 unchanged sentences

Deferred income tax benefit (expense) (3)

( 53 ) 43 ( 10 )

AOCI before reclassifications, net of income tax

2 unchanged sentences

Amounts reclassified from AOCI, net of income tax

Balance at March 31, 2025

Balance at June 30, 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:

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(In millions)

34 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 $ 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 revenues included 12b-1 fees of $ 61 million and $ 125 million for the three months and six months ended June 30, 2026, respectively, and $ 64 million and $ 129 million for the three months and six months ended June 30, 2025, respectively, of which substantially all were reported in the Annuities segment.

Other Expenses

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

(In millions)

13 unchanged sentences

Three Months Ended

Six Months Ended

(In millions, except share and per share data)

6 unchanged sentences

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.

For the six months ended June 30, 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.

18 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 March 31, 2026.

It is possible that some matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at June 30, 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 March 31, 2026, the Company estimates the aggregate range of reasonably possible losses to be up to approximately $ 10 million.

In addition to amounts accrued for probable and reasonably estimable losses, as of June 30, 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

37 unchanged sentences

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.

On July 27, 2026, Brighthouse Life Insurance Company executed a settlement agreement with plaintiff to settle all actual and potential claims on behalf of the putative class defined in the complaint for approximately $ 9.3 million.

The settlement excludes any policies at issue in Richard A.

Brighthouse Life Insurance Company .

The settlement is subject to court approval.

MOVEit Data Security Incident Litigation

25 unchanged sentences

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

As of March 31, 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.

As of June 30, 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.

1 unchanged sentence

The Company commits to lend funds under mortgage loan commitments.

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

The amounts of these mortgage loan commitments were $ 441 million and $ 436 million at June 30, 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 $ 1.4 billion at both March 31, 2026 and December 31, 2025.

The amounts of these unfunded commitments were $ 1.2 billion and $ 1.4 billion at June 30, 2026 and December 31, 2025, respectively.

In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future.

8 unchanged sentences

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

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

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