Brighthouse Q3 Earnings and Revenues Miss, Expenses Rise Y/Y

Brighthouse Financial BHF reported third-quarter 2024 adjusted net income of $3.99 per share, which missed the Zacks Consensus Estimate by 11.3%. The bottom line dropped 4.5% year over year. The results reflected higher expenses.Stay up-to-date with all quarterly releases: See Zack Earnings Calendar.Behind the HeadlinesTotal operating revenues of $2.2 billion increased 4.3% year over year, driven by higher net investment income and other income. However, the top line missed the consensus mark by 1.7%.Brighthouse Financial, Inc. Price, Consensus and EPS Surprise Brighthouse Financial, Inc. price-consensus-eps-surprise-chart | Brighthouse Financial, Inc. QuotePremiums of $180 million increased 7.2% year over year.Adjusted net investment income was $1.3 billion in the quarter under review, up 5.4% year over year, primarily driven by asset growth. The adjusted investment income yield was 4.26%.Total expenses were $1.8 million, up more than threefold year over year, attributable to lower unfavorable change in market risk benefits. Corporate expenses, pretax, were $203 million, down 3.3% year over year.Quarterly Segmental UpdateAnnuities recorded an adjusted operating income of $327 million, up 2.5% year over year on higher fees. Annuity sales decreased 2.8% to $2.5 billion due to sales of a fixed index annuity product.Life’s adjusted operating loss was $25 million, narrower than a loss of $73 million in the year-ago quarter on higher underwriting margin. Life insurance sales increased 20% to $30 million.Adjusted operating income at Run-off was $463 million, higher than the year-ago income of $95 million due to the inclusion of favorable notable items related to the annual actuarial review and related refinements completed.Corporate & Other recorded adjusted operating income of $2 million against the year-ago loss of $15 million, reflecting higher tax benefit.Financial UpdateCash and cash equivalents were $5.6 billion, up 46.6% year over year.Shareholders’ equity of $5.6 billion at the end of third-quarter 2024 decreased 35.4% year over year.Book value per share, excluding accumulated other comprehensive income, was $132.91 as of Sept. 30, 2024, down 9.3% year over year.Statutory combined total adjusted capital was $5.7 billion as of Sept. 30, 2024, down 21.9% year over year.As of Sept. 30, 2024, the estimated  combined risk-based capital ratio was 365%-385%.Share Buyback ProgramBrighthouse bought back shares worth $64 million in the third quarter of 2024 and another $25 million through Nov. 1, 2024.Zacks RankBHF currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other Life InsurersVoya Financial, Inc. VOYA reported third-quarter 2024 adjusted operating earnings of $2.12 per share, which beat the Zacks Consensus Estimate by about 4.8%. The bottom line increased 2.4% year over year. Adjusted operating revenues amounted to $1.97 billion, which increased 7.6% year over year. The increase was driven by higher fee income, premiums and other revenues.Net investment income decreased 7.5% year over year to $506 million. Meanwhile, fee income of $489 million increased 10.4% year over year. Premiums totaled $796 million, up 16.7% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 11.4% from the year-ago quarter. As of Sept. 30, 2024, VOYA’s assets under management, assets under administration and advisement totaled $391.6 million.Sun Life Financial Inc. SLF delivered a third-quarter 2024 underlying net income of $1.29 per share, which beat the Zacks Consensus Estimate by 3.2%. Moreover, the bottom line increased 8.4% year over year.  The underlying net income was reported at $744.73 million (C$1,016 million), which increased 7.4% year over year.Wealth sales & asset management gross flows increased 4.8% year over year to $30.72 billion (C$41.91 billion) in the quarter under review. The new business contractual service margin was $280.74 million (C$383 million), up 1.8% year over year.Reinsurance Group of America, Incorporated RGA reported third-quarter 2024 adjusted operating earnings of $6.13 per share, which beat the Zacks Consensus Estimate by 19%. Moreover, the bottom line increased 10% from the year-ago quarter’s figure. Net foreign currency fluctuations had a favorable effect of 2 cents per share on adjusted operating income.RGA's operating revenues of $5.7 billion beat the Zacks Consensus Estimate by 13.8%. The top line also improved 8.5% year over year due to higher net premiums. Net premiums of $4.4 billion rose 3.2% year over year. Investment income increased 28.8% from the prior-year quarter to $1.2 billion. The average investment yield increased to 5.08% in the third quarter from 4.72% in the prior-year period due to higher new money rates. Total benefits and expenses at Reinsurance Group increased 14% year over year to $5.4 billion.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Reinsurance Group of America, Incorporated (RGA): Free Stock Analysis Report Sun Life Financial Inc. (SLF): Free Stock Analysis Report Voya Financial, Inc. (VOYA): Free Stock Analysis Report Brighthouse Financial, Inc. (BHF): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks