REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Policy Owners of
Brighthouse Variable Life Account A
and Board of Directors of
Brighthouse Life Insurance Company
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of Brighthouse Variable Life Account A (the “Separate Account”) of Brighthouse Life Insurance Company (the “Company”) comprising each of the individual Investment Divisions listed in Note 2 as of December 31, 2025, the related statements of operations for the year then ended, statements of changes in net assets for each of the two years in the period then ended, and financial highlights in Note 8 for each of the five years in the period then ended for the Investment Divisions, except for the Investment Division included in the table below; the related statements of operations, changes in net assets, and financial highlights for the Investment Division and period indicated in the table below; and the related notes (collectively referred to as the “financial statements and financial highlights”). In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Investment Divisions constituting the Separate Account of the Company as of December 31, 2025, and the results of their operations for the year then ended (or for the period listed in the table below), the changes in their net assets for each of the two years in the period then ended (or for the period listed in the table below), and the financial highlights for each of the five years in the period then ended (or for the period listed in the table below), in conformity with accounting principles generally accepted in the United States of America.
Individual Investment | Statement of | Statements of | Financial Highlights |
BHFTI SSGA Emerging Markets Enhanced Index Investment Division | For the period from April 25, 2025 (commencement of operations) through December 31, 2025 | ||
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on the Separate Account’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Separate Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Separate Account is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Separate Account’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of investments owned as of December 31, 2025, by correspondence with the custodian or mutual fund companies. We believe that our audits provide a reasonable basis for our opinion.
/s/ DELOITTE & TOUCHE LLP
Charlotte, North Carolina
March 26, 2026
We have served as the Separate Account’s auditor since 2008.
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 2025
American Funds® | American Funds® | American Funds® | American Funds® |
Assets: |
Investments at fair value | $ | 22,587,108 | $ | 118,401,033 | $ | 51,406,212 | $ | 7,835,418 | ||||
Due from Brighthouse Life | — | — | — | — | ||||||||
Total Assets | 22,587,108 | 118,401,033 | 51,406,212 | 7,835,418 | ||||||||
Liabilities: |
Due to Brighthouse Life | 2 | 22 | 9 | 1 | |||||||||
Total Liabilities | 2 | 22 | 9 | 1 | |||||||||
Net Assets | $ | 22,587,106 | $ | 118,401,011 | $ | 51,406,203 | $ | 7,835,417 | |||||
The accompanying notes are an integral part of these financial statements.
1
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES — (Continued)
December 31, 2025
BHFTI AB Global | BHFTI | BHFTI | BHFTI | BHFTI | BHFTI | BHFTI | BHFTI | BHFTI | BHFTI |
Assets: |
Investments at fair value | $ | 842,012 | $ | 44,511,046 | $ | 16,524,859 | $ | 12,821,641 | $ | 2,406,503 | $ | 36,664,509 | $ | 2,949,071 | $ | 1,993,764 | $ | 8,313,893 | $ | 12,200,720 | ||||||||||
Due from Brighthouse Life | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total Assets | 842,012 | 44,511,046 | 16,524,859 | 12,821,641 | 2,406,503 | 36,664,509 | 2,949,071 | 1,993,764 | 8,313,893 | 12,200,720 | ||||||||||||||||||||
Liabilities: |
Due to Brighthouse Life | 1 | 1 | 1 | 1 | 260 | 1 | 2 | — | 2 | 1 | |||||||||||||||||||||
Total Liabilities | 1 | 1 | 1 | 1 | 260 | 1 | 2 | — | 2 | 1 | |||||||||||||||||||||
Net Assets | $ | 842,011 | $ | 44,511,045 | $ | 16,524,858 | $ | 12,821,640 | $ | 2,406,243 | $ | 36,664,508 | $ | 2,949,069 | $ | 1,993,764 | $ | 8,313,891 | $ | 12,200,719 | |||||||||||
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
2
3
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES — (Continued)
December 31, 2025
BHFTI | BHFTI Invesco | BHFTI Invesco | BHFTI Invesco | BHFTI | BHFTI | BHFTI | BHFTI | BHFTI | BHFTI MFS® |
Assets: |
Investments at fair value | $ | 27,961,771 | $ | 1,369,244 | $ | 19,995,708 | $ | 6,914,820 | $ | 1,577,562 | $ | 4,799,220 | $ | 4,497,280 | $ | 45,969,657 | $ | 677,538 | $ | 12,503,213 | ||||||||||
Due from Brighthouse Life | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total Assets | 27,961,771 | 1,369,244 | 19,995,708 | 6,914,820 | 1,577,562 | 4,799,220 | 4,497,280 | 45,969,657 | 677,538 | 12,503,213 | ||||||||||||||||||||
Liabilities: |
Due to Brighthouse Life | 1 | 1 | 2 | 1 | 1 | 1 | 1 | 4 | 6 | 1 | |||||||||||||||||||||
Total Liabilities | 1 | 1 | 2 | 1 | 1 | 1 | 1 | 4 | 6 | 1 | |||||||||||||||||||||
Net Assets | $ | 27,961,770 | $ | 1,369,243 | $ | 19,995,706 | $ | 6,914,819 | $ | 1,577,561 | $ | 4,799,219 | $ | 4,497,279 | $ | 45,969,653 | $ | 677,532 | $ | 12,503,212 | |||||||||||
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
4
5
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES — (Continued)
December 31, 2025
BHFTI | BHFTI | BHFTI | BHFTI | BHFTI | BHFTI SSGA | BHFTI SSGA | BHFTI SSGA | BHFTI T. Rowe | BHFTI |
Assets: |
Investments at fair value | $ | 15,813,854 | $ | 2,178,528 | $ | 9,202,455 | $ | 22,310,112 | $ | 1,285,928 | $ | 5,890,340 | $ | 12,988,721 | $ | 21,776,118 | $ | 25,057,366 | $ | 12,432,542 | ||||||||||
Due from Brighthouse Life | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total Assets | 15,813,854 | 2,178,528 | 9,202,455 | 22,310,112 | 1,285,928 | 5,890,340 | 12,988,721 | 21,776,118 | 25,057,366 | 12,432,542 | ||||||||||||||||||||
Liabilities: |
Due to Brighthouse Life | 2 | 1 | — | 2 | 1 | 1 | 2 | 1 | 1 | 2 | |||||||||||||||||||||
Total Liabilities | 2 | 1 | — | 2 | 1 | 1 | 2 | 1 | 1 | 2 | |||||||||||||||||||||
Net Assets | $ | 15,813,852 | $ | 2,178,527 | $ | 9,202,455 | $ | 22,310,110 | $ | 1,285,927 | $ | 5,890,339 | $ | 12,988,719 | $ | 21,776,117 | $ | 25,057,365 | $ | 12,432,540 | |||||||||||
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
6
7
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES — (Continued)
December 31, 2025
BHFTII Baillie | BHFTII | BHFTII | BHFTII | BHFTII | BHFTII | BHFTII | BHFTII | BHFTII | BHFTII |
Assets: |
Investments at fair value | $ | 4,517,648 | $ | 6,829,711 | $ | 20,288,172 | $ | 2,981,237 | $ | 6,698,779 | $ | 62,397,430 | $ | 136,787,559 | $ | 6,398,136 | $ | 4,941,003 | $ | 22,540,080 | ||||||||||
Due from Brighthouse Life | — | — | — | — | — | — | 4 | — | — | — | ||||||||||||||||||||
Total Assets | 4,517,648 | 6,829,711 | 20,288,172 | 2,981,237 | 6,698,779 | 62,397,430 | 136,787,563 | 6,398,136 | 4,941,003 | 22,540,080 | ||||||||||||||||||||
Liabilities: |
Due to Brighthouse Life | 1 | 9 | 5 | 1 | 2 | 1 | — | 15 | 2 | 5 | |||||||||||||||||||||
Total Liabilities | 1 | 9 | 5 | 1 | 2 | 1 | — | 15 | 2 | 5 | |||||||||||||||||||||
Net Assets | $ | 4,517,647 | $ | 6,829,702 | $ | 20,288,167 | $ | 2,981,236 | $ | 6,698,777 | $ | 62,397,429 | $ | 136,787,563 | $ | 6,398,121 | $ | 4,941,001 | $ | 22,540,075 | |||||||||||
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
8
9
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES — (Continued)
December 31, 2025
BHFTII | BHFTII | BHFTII | BHFTII | BHFTII MetLife | BHFTII MetLife | BHFTII MetLife | BHFTII MetLife | BHFTII MetLife | BHFTII |
Assets: |
Investments at fair value | $ | 8,149,902 | $ | 22,409,687 | $ | 8,622,333 | $ | 5,575,794 | $ | 32,440,969 | $ | 30,490,284 | $ | 39,048,881 | $ | 24,675,189 | $ | 114,841,702 | $ | 5,486,708 | ||||||||||
Due from Brighthouse Life | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total Assets | 8,149,902 | 22,409,687 | 8,622,333 | 5,575,794 | 32,440,969 | 30,490,284 | 39,048,881 | 24,675,189 | 114,841,702 | 5,486,708 | ||||||||||||||||||||
Liabilities: |
Due to Brighthouse Life | 2 | 2 | 27 | 2 | 1 | 3 | 3 | 2 | 11 | 11 | |||||||||||||||||||||
Total Liabilities | 2 | 2 | 27 | 2 | 1 | 3 | 3 | 2 | 11 | 11 | |||||||||||||||||||||
Net Assets | $ | 8,149,900 | $ | 22,409,685 | $ | 8,622,306 | $ | 5,575,792 | $ | 32,440,968 | $ | 30,490,281 | $ | 39,048,878 | $ | 24,675,187 | $ | 114,841,691 | $ | 5,486,697 | |||||||||||
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
10
11
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES — (Concluded)
December 31, 2025
BHFTII | BHFTII Neuberger | BHFTII | BHFTII | BHFTII VanEck | BHFTII Western | BHFTII Western | FTVIPT Franklin | FTVIPT Franklin |
Assets: |
Investments at fair value | $ | 38,008,303 | $ | 7,075,422 | $ | 41,339,563 | $ | 21,285,385 | $ | 4,586,737 | $ | 14,480,611 | $ | 3,083,756 | $ | 1,306,440 | $ | 1,837,579 | |||||||||
Due from Brighthouse Life | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total Assets | 38,008,303 | 7,075,422 | 41,339,563 | 21,285,385 | 4,586,737 | 14,480,611 | 3,083,756 | 1,306,440 | 1,837,579 | ||||||||||||||||||
Liabilities: |
Due to Brighthouse Life | 2 | 2 | 4 | 2 | 1 | 2 | 1 | 2 | 1 | |||||||||||||||||||
Total Liabilities | 2 | 2 | 4 | 2 | 1 | 2 | 1 | 2 | 1 | |||||||||||||||||||
Net Assets | $ | 38,008,301 | $ | 7,075,420 | $ | 41,339,559 | $ | 21,285,383 | $ | 4,586,736 | $ | 14,480,609 | $ | 3,083,755 | $ | 1,306,438 | $ | 1,837,578 | ||||||||||
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
12
13
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS
For the year ended December 31, 2025
American Funds® | American Funds® | American Funds® | American Funds® | BHFTI AB Global | BHFTI | BHFTI | BHFTI | BHFTI | BHFTI |
Investment Income: |
Dividends | $ | 76,181 | $ | 168,932 | $ | 447,451 | $ | 337,067 | $ | 26,305 | $ | 599,263 | $ | 313,208 | $ | 327,717 | $ | 31,653 | $ | 472,784 |
Net Realized and Change in |
Realized gain distributions | 483,504 | 8,633,035 | 8,179,262 | — | 107,904 | 2,831,003 | 859,501 | 552,145 | 262,535 | 1,497,149 | ||||||||||||||||||||
Realized gains (losses) on sale of | (217,121) | 2,220,132 | 1,273,145 | (162,416) | (15,896) | 184,691 | 26,120 | (6,799) | (14,220) | 198,993 | ||||||||||||||||||||
Net realized gains (losses) | 266,383 | 10,853,167 | 9,452,407 | (162,416) | 92,008 | 3,015,694 | 885,621 | 545,346 | 248,315 | 1,696,142 | ||||||||||||||||||||
Change in unrealized gains (losses) | 2,676,518 | 9,444,202 | (1,671,354) | 390,609 | (27,965) | 4,089,503 | 1,222,123 | 794,382 | (27,684) | 3,480,827 | ||||||||||||||||||||
Net realized and change in | 2,942,901 | 20,297,369 | 7,781,053 | 228,193 | 64,043 | 7,105,197 | 2,107,744 | 1,339,728 | 220,631 | 5,176,969 | ||||||||||||||||||||
Net increase (decrease) in net assets | $ | 3,019,082 | $ | 20,466,301 | $ | 8,228,504 | $ | 565,260 | $ | 90,348 | $ | 7,704,460 | $ | 2,420,952 | $ | 1,667,445 | $ | 252,284 | $ | 5,649,753 | ||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
14
15
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS — (Continued)
For the year ended December 31, 2025
BHFTI | BHFTI | BHFTI | BHFTI | BHFTI | BHFTI Invesco | BHFTI Invesco | BHFTI Invesco | BHFTI | BHFTI |
Investment Income: |
Dividends | $ | 110,966 | $ | — | $ | 43,934 | $ | 339,923 | $ | 601,419 | $ | 81,227 | $ | 27,593 | $ | — | $ | 35,815 | $ | 51,772 |
Net Realized and Change in |
Realized gain distributions | — | — | 1,518,095 | — | 877,069 | — | 2,863,268 | — | — | 466,316 | ||||||||||||||||||||
Realized gains (losses) on sale of | (21,494) | (17,436) | 79,873 | (24,260) | 236,102 | (18,544) | 170,392 | (106,405) | 1,379 | (108,641) | ||||||||||||||||||||
Net realized gains (losses) | (21,494) | (17,436) | 1,597,968 | (24,260) | 1,113,171 | (18,544) | 3,033,660 | (106,405) | 1,379 | 357,675 | ||||||||||||||||||||
Change in unrealized gains (losses) | 230,533 | 294,681 | (400,184) | 490,998 | 5,587,157 | 103,877 | (224,295) | 538,625 | 160,980 | 176,516 | ||||||||||||||||||||
Net realized and change in | 209,039 | 277,245 | 1,197,784 | 466,738 | 6,700,328 | 85,333 | 2,809,365 | 432,220 | 162,359 | 534,191 | ||||||||||||||||||||
Net increase (decrease) in net assets | $ | 320,005 | $ | 277,245 | $ | 1,241,718 | $ | 806,661 | $ | 7,301,747 | $ | 166,560 | $ | 2,836,958 | $ | 432,220 | $ | 198,174 | $ | 585,963 | ||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
16
17
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS — (Continued)
For the year ended December 31, 2025
BHFTI | BHFTI | BHFTI | BHFTI MFS® | BHFTI | BHFTI | BHFTI | BHFTI | BHFTI | BHFTI SSGA |
Investment Income: |
Dividends | $ | 50,213 | $ | — | $ | 3,990 | $ | 226,384 | $ | — | $ | 208,606 | $ | 109,719 | $ | 1,163,440 | $ | 18,509 | $ | 48,990 |
Net Realized and Change in |
Realized gain distributions | 325,891 | 5,779,857 | — | 657,874 | — | — | 63,790 | — | 65,085 | — | ||||||||||||||||||||
Realized gains (losses) on sale of | 13,968 | 1,180,702 | (7,875) | 95,988 | (567,373) | (41,247) | (11,356) | (213,808) | 10,849 | 54,274 | ||||||||||||||||||||
Net realized gains (losses) | 339,859 | 6,960,559 | (7,875) | 753,862 | (567,373) | (41,247) | 52,434 | (213,808) | 75,934 | 54,274 | ||||||||||||||||||||
Change in unrealized gains (losses) | 125,472 | (551,439) | 59,586 | 1,350,314 | 2,372,688 | 209,438 | 514,208 | 904,481 | 24,544 | 1,278,163 | ||||||||||||||||||||
Net realized and change in | 465,331 | 6,409,120 | 51,711 | 2,104,176 | 1,805,315 | 168,191 | 566,642 | 690,673 | 100,478 | 1,332,437 | ||||||||||||||||||||
Net increase (decrease) in net assets | $ | 515,544 | $ | 6,409,120 | $ | 55,701 | $ | 2,330,560 | $ | 1,805,315 | $ | 376,797 | $ | 676,361 | $ | 1,854,113 | $ | 118,987 | $ | 1,381,427 | ||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
18
19
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS — (Continued)
For the year ended December 31, 2025
BHFTI SSGA | BHFTI SSGA | BHFTI T. Rowe | BHFTI | BHFTII Baillie | BHFTII | BHFTII | BHFTII | BHFTII | BHFTII |
Investment Income: |
Dividends | $ | 329,388 | $ | 454,238 | $ | — | $ | 182,692 | $ | 29,818 | $ | 363,585 | $ | — | $ | 103,824 | $ | 189,078 | $ | 1,422,046 |
Net Realized and Change in |
Realized gain distributions | 353,593 | 1,345,441 | 3,361,417 | 1,556,486 | 176,332 | — | 2,446,237 | — | 74,014 | 1,507,262 | ||||||||||||||||||||
Realized gains (losses) on sale of | 20,914 | 76,574 | (265,975) | (54,085) | 11,722 | (93,177) | 219,757 | (25,922) | (44,241) | (94,446) | ||||||||||||||||||||
Net realized gains (losses) | 374,507 | 1,422,015 | 3,095,442 | 1,502,401 | 188,054 | (93,177) | 2,665,994 | (25,922) | 29,773 | 1,412,816 | ||||||||||||||||||||
Change in unrealized gains (losses) | 1,223,447 | 1,804,093 | (2,172,428) | (1,367,582) | 533,231 | 244,311 | (269,367) | 199,723 | 514,430 | 4,823,598 | ||||||||||||||||||||
Net realized and change in | 1,597,954 | 3,226,108 | 923,014 | 134,819 | 721,285 | 151,134 | 2,396,627 | 173,801 | 544,203 | 6,236,414 | ||||||||||||||||||||
Net increase (decrease) in net assets | $ | 1,927,342 | $ | 3,680,346 | $ | 923,014 | $ | 317,511 | $ | 751,103 | $ | 514,719 | $ | 2,396,627 | $ | 277,625 | $ | 733,281 | $ | 7,658,460 | ||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
20
21
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS — (Continued)
For the year ended December 31, 2025
BHFTII | BHFTII | BHFTII | BHFTII | BHFTII | BHFTII | BHFTII | BHFTII | BHFTII MetLife | BHFTII MetLife |
Investment Income: |
Dividends | $ | 2,490,193 | $ | 88,244 | $ | 102,588 | $ | 308,175 | $ | — | $ | — | $ | 16,901 | $ | — | $ | 596,050 | $ | 323,097 |
Net Realized and Change in |
Realized gain distributions | 4,583,243 | 1,242,007 | 510,231 | 2,679,693 | 391,911 | 3,771,425 | 952,326 | 624,442 | — | 2,082,536 | ||||||||||||||||||||
Realized gains (losses) on sale of | 202,797 | (279,642) | 20,270 | (99,866) | 7,192 | 139,386 | (28,004) | (125,604) | (255,338) | 91,062 | ||||||||||||||||||||
Net realized gains (losses) | 4,786,040 | 962,365 | 530,501 | 2,579,827 | 399,103 | 3,910,811 | 924,322 | 498,838 | (255,338) | 2,173,598 | ||||||||||||||||||||
Change in unrealized gains (losses) | 12,152,756 | (925,544) | (70,853) | (1,232,206) | 17,630 | (1,015,154) | (498,149) | (327,564) | 1,722,670 | (409,939) | ||||||||||||||||||||
Net realized and change in | 16,938,796 | 36,821 | 459,648 | 1,347,621 | 416,733 | 2,895,657 | 426,173 | 171,274 | 1,467,332 | 1,763,659 | ||||||||||||||||||||
Net increase (decrease) in net assets | $ | 19,428,989 | $ | 125,065 | $ | 562,236 | $ | 1,655,796 | $ | 416,733 | $ | 2,895,657 | $ | 443,074 | $ | 171,274 | $ | 2,063,382 | $ | 2,086,756 | ||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
22
23
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS — (Continued)
For the year ended December 31, 2025
BHFTII MetLife | BHFTII MetLife | BHFTII MetLife | BHFTII | BHFTII | BHFTII Neuberger | BHFTII | BHFTII | BHFTII VanEck | BHFTII Western |
Investment Income: |
Dividends | $ | 678,329 | $ | 262,827 | $ | 1,071,402 | $ | 147,194 | $ | 666,443 | $ | 7,949 | $ | — | $ | 51,018 | $ | 128,065 | $ | 1,082,561 |
Net Realized and Change in |
Realized gain distributions | 269,646 | 1,183,963 | 9,395,936 | 354,364 | 4,157,696 | 991,382 | 5,383,628 | 4,119,469 | 67,973 | — | ||||||||||||||||||||
Realized gains (losses) on sale of | 1,130,151 | 73,742 | 2,748,320 | (10,416) | (243,678) | (179,697) | 498,661 | (108,695) | 142,393 | (276,543) | ||||||||||||||||||||
Net realized gains (losses) | 1,399,797 | 1,257,705 | 12,144,256 | 343,948 | 3,914,018 | 811,685 | 5,882,289 | 4,010,774 | 210,366 | (276,543) | ||||||||||||||||||||
Change in unrealized gains (losses) | 7,655,967 | 1,391,882 | 4,527,593 | 69,286 | 64,421 | (1,170,472) | (23,589) | (2,032,999) | 995,503 | 432,358 | ||||||||||||||||||||
Net realized and change in | 9,055,764 | 2,649,587 | 16,671,849 | 413,234 | 3,978,439 | (358,787) | 5,858,700 | 1,977,775 | 1,205,869 | 155,815 | ||||||||||||||||||||
Net increase (decrease) in net assets | $ | 9,734,093 | $ | 2,912,414 | $ | 17,743,251 | $ | 560,428 | $ | 4,644,882 | $ | (350,838) | $ | 5,858,700 | $ | 2,028,793 | $ | 1,333,934 | $ | 1,238,376 | ||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
24
25
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS — (Concluded)
For the year ended December 31, 2025
BHFTII Western | FTVIPT Franklin | FTVIPT Franklin |
Investment Income: |
Dividends | $ | 104,154 | $ | 60,797 | $ | 35,613 |
Net Realized and Change in |
Realized gain distributions | — | 12,779 | 175,465 | ||||||
Realized gains (losses) on sale of | (25,334) | (316) | (1,410) | ||||||
Net realized gains (losses) | (25,334) | 12,463 | 174,055 | ||||||
Change in unrealized gains (losses) | 115,306 | 70,995 | (15,992) | ||||||
Net realized and change in | 89,972 | 83,458 | 158,063 | ||||||
Net increase (decrease) in net assets | $ | 194,126 | $ | 144,255 | $ | 193,676 | |||
(a) For the period April 25, 2025 to December 31, 2025.
The accompanying notes are an integral part of these financial statements.
26
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended December 31, 2025 and 2024
American Funds® | American Funds® Growth | American Funds® Growth-Income | American Funds® | BHFTI | BHFTI American Funds® | BHFTI American Funds® | |||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||
Increase (Decrease) in Net Assets: |
From Operations: |
Net investment income (loss) | $ | 76,181 | $ | 217,247 | $ | 168,932 | $ | 319,033 | $ | 447,451 | $ | 500,568 | $ | 337,067 | $ | 331,891 | $ | 26,305 | $ | 10,652 | $ | 599,263 | $ | 550,432 | $ | 313,208 | $ | 259,577 | |||||||||||||||
Net realized gains (losses) | 266,383 | 485,003 | 10,853,167 | 4,504,348 | 9,452,407 | 3,194,830 | (162,416) | (71,253) | 92,008 | (798) | 3,015,694 | 1,456,106 | 885,621 | 401,764 | |||||||||||||||||||||||||||||
Change in unrealized gains | 2,676,518 | (233,218) | 9,444,202 | 21,407,809 | (1,671,354) | 5,980,141 | 390,609 | (177,347) | (27,965) | 48,623 | 4,089,503 | 3,117,607 | 1,222,123 | 851,089 | |||||||||||||||||||||||||||||
Net increase (decrease) | 3,019,082 | 469,032 | 20,466,301 | 26,231,190 | 8,228,504 | 9,675,539 | 565,260 | 83,291 | 90,348 | 58,477 | 7,704,460 | 5,124,145 | 2,420,952 | 1,512,430 | |||||||||||||||||||||||||||||
Policy Transactions: |
Premium payments received | 1,102,347 | 1,238,610 | 3,281,592 | 3,579,959 | 1,697,906 | 1,808,731 | 479,934 | 498,271 | 40,853 | 43,234 | 1,546,676 | 1,763,328 | 527,764 | 598,116 | ||||||||||||||
Net transfers (including | (387,800) | 283,191 | 1,524,559 | (3,257,096) | (806,586) | (871,509) | (404,503) | 1,012,876 | (24,312) | 3,260 | 31,899 | 8,673 | 962,877 | 38,478 | ||||||||||||||
Policy charges | (446,720) | (479,687) | (2,026,129) | (2,089,678) | (983,858) | (1,035,617) | (198,266) | (208,363) | (21,830) | (22,637) | (825,964) | (869,428) | (375,593) | (388,246) | ||||||||||||||
Transfers for Policy benefits | (1,429,802) | (1,328,266) | (7,317,273) | (9,323,952) | (3,995,618) | (3,428,682) | (707,910) | (552,749) | (116,239) | (2,440) | (2,770,417) | (1,636,330) | (892,729) | (560,937) | ||||||||||||||
Net increase (decrease) | (1,161,975) | (286,152) | (4,537,251) | (11,090,767) | (4,088,156) | (3,527,077) | (830,745) | 750,035 | (121,528) | 21,417 | (2,017,806) | (733,757) | 222,319 | (312,589) | ||||||||||||||
Net increase (decrease) | 1,857,107 | 182,880 | 15,929,050 | 15,140,423 | 4,140,348 | 6,148,462 | (265,485) | 833,326 | (31,180) | 79,894 | 5,686,654 | 4,390,388 | 2,643,271 | 1,199,841 | ||||||||||||||
Net Assets: |
Beginning of year | 20,729,999 | 20,547,119 | 102,471,961 | 87,331,538 | 47,265,855 | 41,117,393 | 8,100,902 | 7,267,576 | 873,191 | 793,297 | 38,824,391 | 34,434,003 | 13,881,587 | 12,681,746 | ||||||||||||||||||||||||||||
End of year | $ | 22,587,106 | $ | 20,729,999 | $ | 118,401,011 | $ | 102,471,961 | $ | 51,406,203 | $ | 47,265,855 | $ | 7,835,417 | $ | 8,100,902 | $ | 842,011 | $ | 873,191 | $ | 44,511,045 | $ | 38,824,391 | $ | 16,524,858 | $ | 13,881,587 | ||||||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
28
29
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2025 and 2024
BHFTI American Funds® | BHFTI BlackRock Global | BHFTI | BHFTI | BHFTI Brighthouse/Templeton | BHFTI Brighthouse/Wellington | BHFTI | |||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||
Increase (Decrease) in Net Assets: |
From Operations: |
Net investment income (loss) | $ | 327,717 | $ | 266,008 | $ | 31,653 | $ | 33,588 | $ | 472,784 | $ | 353,637 | $ | 110,966 | $ | 73,059 | $ | — | $ | — | $ | 43,934 | $ | 47,659 | $ | 339,923 | $ | 420,025 | ||||||||||||||
Net realized gains (losses) | 545,346 | 214,632 | 248,315 | (6,383) | 1,696,142 | 1,016,489 | (21,494) | (98,048) | (17,436) | (28,719) | 1,597,968 | 634,291 | (24,260) | (12,398) | ||||||||||||||||||||||||||||
Change in unrealized gains | 794,382 | 499,944 | (27,684) | 99,433 | 3,480,827 | 2,666,108 | 230,533 | 136,072 | 294,681 | (171,594) | (400,184) | 847,939 | 490,998 | (255,177) | ||||||||||||||||||||||||||||
Net increase (decrease) | 1,667,445 | 980,584 | 252,284 | 126,638 | 5,649,753 | 4,036,234 | 320,005 | 111,083 | 277,245 | (200,313) | 1,241,718 | 1,529,889 | 806,661 | 152,450 | ||||||||||||||||||||||||||||
Policy Transactions: |
Premium payments received | 664,054 | 720,121 | 178,309 | 128,282 | 1,583,104 | 1,727,955 | 212,807 | 264,011 | 128,673 | 170,957 | 316,013 | 386,111 | 564,610 | 718,245 | ||||||||||||||
Net transfers (including | 4,951 | (64,159) | 20,238 | (18,856) | 71,396 | (803,360) | (29,918) | (27,078) | (5,867) | 162,879 | (743,223) | (276,083) | 357,639 | 249,094 | ||||||||||||||
Policy charges | (438,952) | (453,101) | (78,843) | (85,883) | (692,574) | (724,029) | (126,058) | (140,023) | (51,662) | (55,106) | (158,738) | (175,432) | (283,260) | (307,361) | ||||||||||||||
Transfers for Policy benefits | (364,477) | (562,491) | (221,085) | (63,502) | (2,552,774) | (2,702,485) | (115,802) | (423,670) | (60,388) | (180,464) | (582,561) | (454,752) | (947,112) | (976,285) | ||||||||||||||
Net increase (decrease) | (134,424) | (359,630) | (101,381) | (39,959) | (1,590,848) | (2,501,919) | (58,971) | (326,760) | 10,756 | 98,266 | (1,168,509) | (520,156) | (308,123) | (316,307) | ||||||||||||||
Net increase (decrease) | 1,533,021 | 620,954 | 150,903 | 86,679 | 4,058,905 | 1,534,315 | 261,034 | (215,677) | 288,001 | (102,047) | 73,209 | 1,009,733 | 498,538 | (163,857) | ||||||||||||||
Net Assets: |
Beginning of year | 11,288,619 | 10,667,665 | 2,255,340 | 2,168,661 | 32,605,603 | 31,071,288 | 2,688,035 | 2,903,712 | 1,705,763 | 1,807,810 | 8,240,682 | 7,230,949 | 11,702,181 | 11,866,038 | ||||||||||||||||||||||||||||
End of year | $ | 12,821,640 | $ | 11,288,619 | $ | 2,406,243 | $ | 2,255,340 | $ | 36,664,508 | $ | 32,605,603 | $ | 2,949,069 | $ | 2,688,035 | $ | 1,993,764 | $ | 1,705,763 | $ | 8,313,891 | $ | 8,240,682 | $ | 12,200,719 | $ | 11,702,181 | ||||||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
30
31
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2025 and 2024
BHFTI | BHFTI | BHFTI Invesco Global Equity | BHFTI | BHFTI JPMorgan | BHFTI | BHFTI | |||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||
Increase (Decrease) in Net Assets: |
From Operations: |
Net investment income (loss) | $ | 601,419 | $ | 544,466 | $ | 81,227 | $ | 19,309 | $ | 27,593 | $ | 48,864 | $ | — | $ | — | $ | 35,815 | $ | 13,718 | $ | 51,772 | $ | 81,794 | $ | 50,213 | $ | 48,385 | |||||||||||||||
Net realized gains (losses) | 1,113,171 | (5,201) | (18,544) | (9,767) | 3,033,660 | 1,947,452 | (106,405) | (251,285) | 1,379 | (2,556) | 357,675 | (82,136) | 339,859 | 238,712 | |||||||||||||||||||||||||||||
Change in unrealized gains | 5,587,157 | (1,651,455) | 103,877 | 40,286 | (224,295) | 714,032 | 538,625 | 1,244,963 | 160,980 | 65,124 | 176,516 | 414,209 | 125,472 | 231,024 | |||||||||||||||||||||||||||||
Net increase (decrease) | 7,301,747 | (1,112,190) | 166,560 | 49,828 | 2,836,958 | 2,710,348 | 432,220 | 993,678 | 198,174 | 76,286 | 585,963 | 413,867 | 515,544 | 518,121 | |||||||||||||||||||||||||||||
Policy Transactions: |
Premium payments received | 1,217,090 | 1,436,690 | 136,126 | 131,427 | 600,374 | 761,305 | 332,200 | 378,970 | 85,389 | 93,802 | 206,891 | 244,605 | 182,866 | 199,645 | ||||||||||||||
Net transfers (including | (1,160,728) | 928,260 | 15,010 | 30,622 | (313,241) | (71,608) | 109,347 | (248,457) | (24,960) | 7,573 | (89,538) | (86,758) | (147,360) | 112,294 | ||||||||||||||
Policy charges | (499,304) | (511,113) | (115,119) | (113,474) | (313,542) | (326,527) | (129,881) | (155,339) | (40,133) | (39,990) | (91,047) | (106,565) | (98,870) | (107,923) | ||||||||||||||
Transfers for Policy benefits | (2,071,230) | (1,645,600) | (168,830) | (31,366) | (885,754) | (1,960,490) | (394,949) | (528,577) | (127,457) | (64,102) | (387,409) | (436,107) | (135,235) | (780,078) | ||||||||||||||
Net increase (decrease) | (2,514,172) | 208,237 | (132,813) | 17,209 | (912,163) | (1,597,320) | (83,283) | (553,403) | (107,161) | (2,717) | (361,103) | (384,825) | (198,599) | (576,062) | ||||||||||||||
Net increase (decrease) | 4,787,575 | (903,953) | 33,747 | 67,037 | 1,924,795 | 1,113,028 | 348,937 | 440,275 | 91,013 | 73,569 | 224,860 | 29,042 | 316,945 | (57,941) | ||||||||||||||
Net Assets: |
Beginning of year | 23,174,195 | 24,078,148 | 1,335,496 | 1,268,459 | 18,070,911 | 16,957,883 | 6,565,882 | 6,125,607 | 1,486,548 | 1,412,979 | 4,574,359 | 4,545,317 | 4,180,334 | 4,238,275 | ||||||||||||||||||||||||||||
End of year | $ | 27,961,770 | $ | 23,174,195 | $ | 1,369,243 | $ | 1,335,496 | $ | 19,995,706 | $ | 18,070,911 | $ | 6,914,819 | $ | 6,565,882 | $ | 1,577,561 | $ | 1,486,548 | $ | 4,799,219 | $ | 4,574,359 | $ | 4,497,279 | $ | 4,180,334 | ||||||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
32
33
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2025 and 2024
BHFTI | BHFTI | BHFTI | BHFTI | BHFTI | BHFTI | BHFTI | |||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||
Increase (Decrease) in Net Assets: |
From Operations: |
Net investment income (loss) | $ | — | $ | — | $ | 3,990 | $ | 16,154 | $ | 226,384 | $ | 201,243 | $ | — | $ | — | $ | 208,606 | $ | 7,223 | $ | 109,719 | $ | — | $ | 1,163,440 | $ | 595,528 | |||||||||||||||
Net realized gains (losses) | 6,960,559 | 4,064,301 | (7,875) | (8,431) | 753,862 | 378,311 | (567,373) | (1,802,448) | (41,247) | (57,374) | 52,434 | (30,070) | (213,808) | (196,962) | |||||||||||||||||||||||||||||
Change in unrealized gains | (551,439) | 7,605,917 | 59,586 | 41,236 | 1,350,314 | (234,386) | 2,372,688 | 5,946,707 | 209,438 | 130,031 | 514,208 | 238,688 | 904,481 | 132,148 | |||||||||||||||||||||||||||||
Net increase (decrease) | 6,409,120 | 11,670,218 | 55,701 | 48,959 | 2,330,560 | 345,168 | 1,805,315 | 4,144,259 | 376,797 | 79,880 | 676,361 | 208,618 | 1,854,113 | 530,714 | |||||||||||||||||||||||||||||
Policy Transactions: |
Premium payments received | 1,451,955 | 1,701,376 | 54,246 | 61,714 | 517,272 | 622,666 | 798,948 | 828,576 | 188,577 | 194,028 | 482,929 | 572,550 | 1,209,949 | 1,425,872 | ||||||||||||||
Net transfers (including | (660,581) | (1,809,715) | 6,841 | (947) | (241,454) | 260,544 | 628,849 | (620,192) | (45,178) | 7,216 | 153,111 | 526,272 | 1,273,755 | 846,370 | ||||||||||||||
Policy charges | (848,897) | (859,258) | (44,800) | (48,388) | (209,594) | (213,934) | (327,788) | (286,871) | (165,207) | (164,537) | (217,712) | (227,878) | (516,074) | (577,805) | ||||||||||||||
Transfers for Policy benefits | (3,536,466) | (2,489,009) | (81,056) | (48,402) | (387,072) | (875,096) | (1,026,498) | (1,203,318) | (188,226) | (170,940) | (588,320) | (496,956) | (1,380,805) | (1,325,689) | ||||||||||||||
Net increase (decrease) | (3,593,989) | (3,456,606) | (64,769) | (36,023) | (320,848) | (205,820) | 73,511 | (1,281,805) | (210,034) | (134,233) | (169,992) | 373,988 | 586,825 | 368,748 | ||||||||||||||
Net increase (decrease) | 2,815,131 | 8,213,612 | (9,068) | 12,936 | 2,009,712 | 139,348 | 1,878,826 | 2,862,454 | 166,763 | (54,353) | 506,369 | 582,606 | 2,440,938 | 899,462 | ||||||||||||||
Net Assets: |
Beginning of year | 43,154,522 | 34,940,910 | 686,600 | 673,664 | 10,493,500 | 10,354,152 | 13,935,026 | 11,072,572 | 2,011,764 | 2,066,117 | 8,696,086 | 8,113,480 | 19,869,172 | 18,969,710 | ||||||||||||||||||||||||||||
End of year | $ | 45,969,653 | $ | 43,154,522 | $ | 677,532 | $ | 686,600 | $ | 12,503,212 | $ | 10,493,500 | $ | 15,813,852 | $ | 13,935,026 | $ | 2,178,527 | $ | 2,011,764 | $ | 9,202,455 | $ | 8,696,086 | $ | 22,310,110 | $ | 19,869,172 | ||||||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
34
35
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2025 and 2024
BHFTI | BHFTI SSGA | BHFTI | BHFTI | BHFTI | BHFTI | BHFTII Baillie Gifford | ||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 (a) | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||
Increase (Decrease) in Net Assets: |
From Operations: |
Net investment income (loss) | $ | 18,509 | $ | 22,432 | $ | 48,990 | $ | 329,388 | $ | 306,286 | $ | 454,238 | $ | 426,455 | $ | — | $ | 43,391 | $ | 182,692 | $ | 187,436 | $ | 29,818 | $ | 32,836 | |||||||||||||
Net realized gains (losses) | 75,934 | (8,212) | 54,274 | 374,507 | (74,841) | 1,422,015 | (93,393) | 3,095,442 | 2,016,957 | 1,502,401 | 899,765 | 188,054 | 233,897 | ||||||||||||||||||||||||||
Change in unrealized gains | 24,544 | 100,962 | 1,278,163 | 1,223,447 | 1,018,368 | 1,804,093 | 1,966,408 | (2,172,428) | 180,256 | (1,367,582) | 179,128 | 533,231 | (91,204) | ||||||||||||||||||||||||||
Net increase (decrease) | 118,987 | 115,182 | 1,381,427 | 1,927,342 | 1,249,813 | 3,680,346 | 2,299,470 | 923,014 | 2,240,604 | 317,511 | 1,266,329 | 751,103 | 175,529 | ||||||||||||||||||||||||||
Policy Transactions: |
Premium payments received | 68,809 | 74,011 | 185,743 | 577,672 | 631,749 | 935,055 | 1,116,894 | 1,190,817 | 1,377,745 | 565,127 | 659,389 | 182,492 | 237,267 | |||||||||||||
Net transfers (including | (13,215) | (8,925) | 4,511,792 | (22,709) | (230,303) | (332,238) | (425,246) | 535,961 | (163,006) | 16,008 | (137,353) | (70,631) | 88,785 | |||||||||||||
Policy charges | (33,530) | (37,958) | (64,653) | (307,631) | (363,104) | (443,556) | (479,416) | (557,391) | (605,466) | (260,861) | (294,013) | (88,575) | (97,144) | |||||||||||||
Transfers for Policy benefits | (206,874) | (371,507) | (123,970) | (875,558) | (1,128,170) | (1,521,791) | (1,615,619) | (1,705,469) | (2,111,276) | (1,324,440) | (882,630) | (324,547) | (183,479) | |||||||||||||
Net increase (decrease) | (184,810) | (344,379) | 4,508,912 | (628,226) | (1,089,828) | (1,362,530) | (1,403,387) | (536,082) | (1,502,003) | (1,004,166) | (654,607) | (301,261) | 45,429 | |||||||||||||
Net increase (decrease) | (65,823) | (229,197) | 5,890,339 | 1,299,116 | 159,985 | 2,317,816 | 896,083 | 386,932 | 738,601 | (686,655) | 611,722 | 449,842 | 220,958 | |||||||||||||
Net Assets: |
Beginning of year | 1,351,750 | 1,580,947 | — | 11,689,603 | 11,529,618 | 19,458,301 | 18,562,218 | 24,670,433 | 23,931,832 | 13,119,195 | 12,507,473 | 4,067,805 | 3,846,847 | |||||||||||||||||||||||||
End of year | $ | 1,285,927 | $ | 1,351,750 | $ | 5,890,339 | $ | 12,988,719 | $ | 11,689,603 | $ | 21,776,117 | $ | 19,458,301 | $ | 25,057,365 | $ | 24,670,433 | $ | 12,432,540 | $ | 13,119,195 | $ | 4,517,647 | $ | 4,067,805 | ||||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
36
37
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2025 and 2024
BHFTII | BHFTII | BHFTII | BHFTII | BHFTII | BHFTII | BHFTII Brighthouse/ | |||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||
Increase (Decrease) in Net Assets: |
From Operations: |
Net investment income (loss) | $ | 363,585 | $ | 276,413 | $ | — | $ | 13,547 | $ | 103,824 | $ | 78,295 | $ | 189,078 | $ | 167,351 | $ | 1,422,046 | $ | 1,138,476 | $ | 2,490,193 | $ | 1,976,285 | $ | 88,244 | $ | 83,245 | |||||||||||||||
Net realized gains (losses) | (93,177) | (110,834) | 2,665,994 | 1,271,181 | (25,922) | (20,110) | 29,773 | (66,324) | 1,412,816 | 635,294 | 4,786,040 | 1,949,184 | 962,365 | 550,363 | |||||||||||||||||||||||||||||
Change in unrealized gains | 244,311 | (57,440) | (269,367) | 3,487,482 | 199,723 | 44,615 | 514,430 | 285,920 | 4,823,598 | 2,583,872 | 12,152,756 | 9,045,751 | (925,544) | (290,618) | |||||||||||||||||||||||||||||
Net increase (decrease) | 514,719 | 108,139 | 2,396,627 | 4,772,210 | 277,625 | 102,800 | 733,281 | 386,947 | 7,658,460 | 4,357,642 | 19,428,989 | 12,971,220 | 125,065 | 342,990 | |||||||||||||||||||||||||||||
Policy Transactions: |
Premium payments received | 436,596 | 538,373 | 698,747 | 768,699 | 452,377 | 167,728 | 453,877 | 540,757 | 2,767,710 | 2,987,098 | 5,842,603 | 6,754,095 | 323,384 | 376,098 | ||||||||||||||
Net transfers (including | (240,432) | (249,409) | 397,485 | (133,636) | (116,575) | 791,687 | 14,709 | (73,476) | 306,579 | (84,882) | (465,473) | (952,337) | (439,775) | 51,032 | ||||||||||||||
Policy charges | (172,439) | (199,087) | (419,633) | (435,934) | (386,570) | (190,279) | (366,818) | (428,857) | (1,771,764) | (1,817,935) | (3,204,737) | (3,506,499) | (141,581) | (167,163) | ||||||||||||||
Transfers for Policy benefits | (370,564) | (384,085) | (1,379,613) | (1,668,528) | (529,746) | (135,034) | (671,233) | (446,580) | (2,055,179) | (3,163,462) | (9,217,506) | (10,223,087) | (424,946) | (468,270) | ||||||||||||||
Net increase (decrease) | (346,839) | (294,208) | (703,014) | (1,469,399) | (580,514) | 634,102 | (569,465) | (408,156) | (752,654) | (2,079,181) | (7,045,113) | (7,927,828) | (682,918) | (208,303) | ||||||||||||||
Net increase (decrease) | 167,880 | (186,069) | 1,693,613 | 3,302,811 | (302,889) | 736,902 | 163,816 | (21,209) | 6,905,806 | 2,278,461 | 12,383,876 | 5,043,392 | (557,853) | 134,687 | ||||||||||||||
Net Assets: |
Beginning of year | 6,661,822 | 6,847,891 | 18,594,554 | 15,291,743 | 3,284,125 | 2,547,223 | 6,534,961 | 6,556,170 | 55,491,623 | 53,213,162 | 124,403,687 | 119,360,295 | 6,955,974 | 6,821,287 | ||||||||||||||||||||||||||||
End of year | $ | 6,829,702 | $ | 6,661,822 | $ | 20,288,167 | $ | 18,594,554 | $ | 2,981,236 | $ | 3,284,125 | $ | 6,698,777 | $ | 6,534,961 | $ | 62,397,429 | $ | 55,491,623 | $ | 136,787,563 | $ | 124,403,687 | $ | 6,398,121 | $ | 6,955,974 | ||||||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
38
39
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2025 and 2024
BHFTII | BHFTII Brighthouse/Wellington | BHFTII | BHFTII | BHFTII | BHFTII | BHFTII | |||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||
Increase (Decrease) in Net Assets: |
From Operations: |
Net investment income (loss) | $ | 102,588 | $ | 82,857 | $ | 308,175 | $ | 307,849 | $ | — | $ | 19,022 | $ | — | $ | — | $ | 16,901 | $ | 11,369 | $ | — | $ | — | $ | 596,050 | $ | 891,977 | |||||||||||||||
Net realized gains (losses) | 530,501 | 157,638 | 2,579,827 | 742,993 | 399,103 | (17,877) | 3,910,811 | 2,294,847 | 924,322 | 561,816 | 498,838 | (5,370) | (255,338) | (266,557) | |||||||||||||||||||||||||||||
Change in unrealized gains | (70,853) | 338,271 | (1,232,206) | 746,599 | 17,630 | 1,293,825 | (1,015,154) | 2,742,220 | (498,149) | 354,490 | (327,564) | 792,658 | 1,722,670 | (328,860) | |||||||||||||||||||||||||||||
Net increase (decrease) | 562,236 | 578,766 | 1,655,796 | 1,797,441 | 416,733 | 1,294,970 | 2,895,657 | 5,037,067 | 443,074 | 927,675 | 171,274 | 787,288 | 2,063,382 | 296,560 | |||||||||||||||||||||||||||||
Policy Transactions: |
Premium payments received | 207,825 | 219,130 | 849,562 | 977,531 | 356,602 | 367,646 | 814,055 | 974,550 | 338,953 | 451,517 | 266,459 | 331,916 | 1,841,667 | 2,100,548 | ||||||||||||||
Net transfers (including | (92,459) | (98,256) | 167,509 | (30,011) | (98,629) | (191,011) | (299,067) | 1,078,899 | 126,096 | (348,035) | (260,201) | 199,596 | 2,054,255 | 3,084,022 | ||||||||||||||
Policy charges | (99,189) | (107,409) | (405,431) | (447,427) | (156,426) | (172,057) | (451,963) | (434,339) | (170,984) | (192,927) | (131,253) | (150,740) | (899,395) | (945,344) | ||||||||||||||
Transfers for Policy benefits | (209,353) | (318,560) | (1,370,262) | (1,638,644) | (486,671) | (541,731) | (2,202,854) | (1,395,763) | (502,434) | (625,066) | (462,036) | (444,537) | (2,004,480) | (2,481,378) | ||||||||||||||
Net increase (decrease) | (193,176) | (305,095) | (758,622) | (1,138,551) | (385,124) | (537,153) | (2,139,829) | 223,347 | (208,369) | (714,511) | (587,031) | (63,765) | 992,047 | 1,757,848 | ||||||||||||||
Net increase (decrease) | 369,060 | 273,671 | 897,174 | 658,890 | 31,609 | 757,817 | 755,828 | 5,260,414 | 234,705 | 213,164 | (415,757) | 723,523 | 3,055,429 | 2,054,408 | ||||||||||||||
Net Assets: |
Beginning of year | 4,571,941 | 4,298,270 | 21,642,901 | 20,984,011 | 8,118,291 | 7,360,474 | 21,653,857 | 16,393,443 | 8,387,601 | 8,174,437 | 5,991,549 | 5,268,026 | 29,385,539 | 27,331,131 | ||||||||||||||||||||||||||||
End of year | $ | 4,941,001 | $ | 4,571,941 | $ | 22,540,075 | $ | 21,642,901 | $ | 8,149,900 | $ | 8,118,291 | $ | 22,409,685 | $ | 21,653,857 | $ | 8,622,306 | $ | 8,387,601 | $ | 5,575,792 | $ | 5,991,549 | $ | 32,440,968 | $ | 29,385,539 | ||||||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
40
41
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Continued)
For the years ended December 31, 2025 and 2024
BHFTII | BHFTII | BHFTII | BHFTII | BHFTII | BHFTII | BHFTII | |||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||
Increase (Decrease) in Net Assets: |
From Operations: |
Net investment income (loss) | $ | 323,097 | $ | 369,501 | $ | 678,329 | $ | 1,054,166 | $ | 262,827 | $ | 314,409 | $ | 1,071,402 | $ | 1,208,605 | $ | 147,194 | $ | 138,512 | $ | 666,443 | $ | 633,042 | $ | 7,949 | $ | 11,337 | |||||||||||||||
Net realized gains (losses) | 2,173,598 | 1,621,664 | 1,399,797 | 699,890 | 1,257,705 | 745,638 | 12,144,256 | 9,256,120 | 343,948 | 241,932 | 3,914,018 | 3,059,238 | 811,685 | 739,369 | |||||||||||||||||||||||||||||
Change in unrealized gains | (409,939) | 1,592,920 | 7,655,967 | (650,871) | 1,391,882 | 1,295,696 | 4,527,593 | 11,104,233 | 69,286 | 22,610 | 64,421 | 176,756 | (1,170,472) | (63,605) | |||||||||||||||||||||||||||||
Net increase (decrease) | 2,086,756 | 3,584,085 | 9,734,093 | 1,103,185 | 2,912,414 | 2,355,743 | 17,743,251 | 21,568,958 | 560,428 | 403,054 | 4,644,882 | 3,869,036 | (350,838) | 687,101 | |||||||||||||||||||||||||||||
Policy Transactions: |
Premium payments received | 1,426,980 | 1,586,119 | 1,719,527 | 1,860,676 | 1,119,759 | 1,270,217 | 4,456,382 | 4,931,255 | 232,320 | 316,070 | 1,565,796 | 1,712,540 | 316,124 | 420,942 | ||||||||||||||
Net transfers (including | 950,811 | (629,457) | (2,764,718) | 1,713,477 | (21,247) | (449,496) | (409,139) | (4,825,245) | 8,701 | (188,589) | 68,925 | 534,172 | (301,950) | (135,621) | ||||||||||||||
Policy charges | (681,826) | (755,103) | (806,102) | (821,320) | (536,331) | (576,975) | (2,375,178) | (2,477,734) | (107,523) | (122,955) | (702,009) | (755,454) | (138,745) | (164,297) | ||||||||||||||
Transfers for Policy benefits | (1,964,775) | (2,071,151) | (2,287,565) | (2,469,717) | (1,279,678) | (1,466,044) | (7,652,295) | (7,093,191) | (404,792) | (545,072) | (3,100,497) | (2,650,559) | (660,724) | (340,097) | ||||||||||||||
Net increase (decrease) | (268,810) | (1,869,592) | (4,138,858) | 283,116 | (717,497) | (1,222,298) | (5,980,230) | (9,464,915) | (271,294) | (540,546) | (2,167,785) | (1,159,301) | (785,295) | (219,073) | ||||||||||||||
Net increase (decrease) | 1,817,946 | 1,714,493 | 5,595,235 | 1,386,301 | 2,194,917 | 1,133,445 | 11,763,021 | 12,104,043 | 289,134 | (137,492) | 2,477,097 | 2,709,735 | (1,136,133) | 468,028 | ||||||||||||||
Net Assets: |
Beginning of year | 28,672,335 | 26,957,842 | 33,453,643 | 32,067,342 | 22,480,270 | 21,346,825 | 103,078,670 | 90,974,627 | 5,197,563 | 5,335,055 | 35,531,204 | 32,821,469 | 8,211,553 | 7,743,525 | ||||||||||||||||||||||||||||
End of year | $ | 30,490,281 | $ | 28,672,335 | $ | 39,048,878 | $ | 33,453,643 | $ | 24,675,187 | $ | 22,480,270 | $ | 114,841,691 | $ | 103,078,670 | $ | 5,486,697 | $ | 5,197,563 | $ | 38,008,301 | $ | 35,531,204 | $ | 7,075,420 | $ | 8,211,553 | ||||||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
42
43
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS — (Concluded)
For the years ended December 31, 2025 and 2024
BHFTII | BHFTII | BHFTII | BHFTII | BHFTII Western Asset | FTVIPT | FTVIPT | |||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||
Increase (Decrease) in Net Assets: |
From Operations: |
Net investment income (loss) | $ | — | $ | — | $ | 51,018 | $ | 10,142 | $ | 128,065 | $ | 107,143 | $ | 1,082,561 | $ | 1,054,233 | $ | 104,154 | $ | 83,498 | $ | 60,797 | $ | 56,602 | $ | 35,613 | $ | 33,494 | |||||||||||||||
Net realized gains (losses) | 5,882,289 | 2,499,459 | 4,010,774 | 1,043,729 | 210,366 | 183,505 | (276,543) | (216,323) | (25,334) | (75,351) | 12,463 | 3,805 | 174,055 | 30,494 | |||||||||||||||||||||||||||||
Change in unrealized gains | (23,589) | 6,857,696 | (2,032,999) | 1,458,212 | 995,503 | (383,576) | 432,358 | (159,308) | 115,306 | 50,044 | 70,995 | 14,481 | (15,992) | 110,366 | |||||||||||||||||||||||||||||
Net increase (decrease) | 5,858,700 | 9,357,155 | 2,028,793 | 2,512,083 | 1,333,934 | (92,928) | 1,238,376 | 678,602 | 194,126 | 58,191 | 144,255 | 74,888 | 193,676 | 174,354 | |||||||||||||||||||||||||||||
Policy Transactions: |
Premium payments received | 1,438,545 | 1,747,149 | 903,087 | 1,028,796 | 217,966 | 262,940 | 708,735 | 846,297 | 139,484 | 169,705 | 62,454 | 63,271 | 115,083 | 130,562 | ||||||||||||||
Net transfers (including | (670,293) | (499,752) | 139,601 | (13,538) | (523,544) | 397,578 | (136,881) | 717,501 | 467,083 | (420,914) | 14,278 | 25,402 | (114,103) | 18,925 | ||||||||||||||
Policy charges | (792,228) | (841,098) | (447,137) | (470,372) | (103,091) | (113,276) | (332,781) | (357,319) | (76,276) | (90,012) | (31,806) | (33,013) | (30,356) | (36,230) | ||||||||||||||
Transfers for Policy benefits | (2,732,049) | (3,272,544) | (1,571,764) | (1,663,121) | (300,063) | (214,121) | (1,237,069) | (1,463,388) | (381,726) | (313,448) | (19,690) | (6,911) | (27,446) | (95,655) | ||||||||||||||
Net increase (decrease) | (2,756,025) | (2,866,245) | (976,213) | (1,118,235) | (708,732) | 333,121 | (997,996) | (256,909) | 148,565 | (654,669) | 25,236 | 48,749 | (56,822) | 17,602 | ||||||||||||||
Net increase (decrease) | 3,102,675 | 6,490,910 | 1,052,580 | 1,393,848 | 625,202 | 240,193 | 240,380 | 421,693 | 342,691 | (596,478) | 169,491 | 123,637 | 136,854 | 191,956 | ||||||||||||||
Net Assets: |
Beginning of year | 38,236,884 | 31,745,974 | 20,232,803 | 18,838,955 | 3,961,534 | 3,721,341 | 14,240,229 | 13,818,536 | 2,741,064 | 3,337,542 | 1,136,947 | 1,013,310 | 1,700,724 | 1,508,768 | ||||||||||||||||||||||||||||
End of year | $ | 41,339,559 | $ | 38,236,884 | $ | 21,285,383 | $ | 20,232,803 | $ | 4,586,736 | $ | 3,961,534 | $ | 14,480,609 | $ | 14,240,229 | $ | 3,083,755 | $ | 2,741,064 | $ | 1,306,438 | $ | 1,136,947 | $ | 1,837,578 | $ | 1,700,724 | ||||||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
44
45
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
Brighthouse Variable Life Account A (the “Separate Account”), a separate account of Brighthouse Life Insurance Company (the “Company”), was established by the Board of Directors of MetLife Investors USA Insurance Company (“MLI-USA”) on November 15, 2005 to support MLI-USA’s operations with respect to certain variable life insurance policies (the “Policies”). The Company is an indirect wholly-owned subsidiary of Brighthouse Financial, Inc. The Separate Account is registered as a unit investment trust under the Investment Company Act of 1940, as amended, and is subject to the rules and regulations of the U.S. Securities and Exchange Commission, as well as the Delaware Department of Insurance.
The Separate Account is divided into Investment Divisions, each of which is treated as an individual accounting entity for financial reporting purposes. Each Investment Division invests in shares of the corresponding fund or portfolio (with the same name) of the registered investment management companies (the “Trusts”), which are presented below:
American Funds Insurance Series® (“American Funds®”)
Brighthouse Funds Trust I (“BHFTI”)*
Brighthouse Funds Trust II (“BHFTII”)*
Franklin Templeton Variable Insurance Products Trust (“FTVIPT”)
*See Note 5 for a discussion of additional information on related party transactions.
The assets of each of the Investment Divisions of the Separate Account are registered in the name of the Company. Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from the Company’s other assets and liabilities. The portion of the Separate Account’s assets applicable to the Policies is not chargeable with liabilities arising out of any other business the Company may conduct.
Premium payments, less any applicable charges applied to the Separate Account, are invested in one or more Investment Divisions in accordance with the selection made by the policy owner. The following Investment Divisions had net assets as of December 31, 2025:
American Funds® Global Small Capitalization Investment Division
American Funds® Growth Investment Division
American Funds® Growth-Income Investment Division
American Funds® The Bond Fund of America Investment Division
BHFTI AB Global Dynamic Allocation Investment Division
BHFTI American Funds® Aggressive Allocation Investment Division
BHFTI American Funds® Balanced Allocation Investment Division
BHFTI American Funds® Moderate Allocation Investment Division
BHFTI BlackRock Global Tactical Strategies Investment Division
BHFTI Brighthouse Asset Allocation 100 Investment Division
BHFTI Brighthouse Balanced Plus Investment Division
BHFTI Brighthouse/Templeton International Bond Investment Division
BHFTI Brighthouse/Wellington Large Cap Research Investment Division
BHFTI CBRE Global Real Estate Investment Division
BHFTI Harris Oakmark International Investment Division
BHFTI Invesco Balanced-Risk Allocation Investment Division
BHFTI Invesco Global Equity Investment Division
BHFTI Invesco Small Cap Growth Investment Division
BHFTI JPMorgan Global Active Allocation Investment Division
BHFTI JPMorgan Small Cap Value Investment Division
BHFTI Loomis Sayles Global Allocation Investment Division
BHFTI Loomis Sayles Growth Investment Division
BHFTI MetLife Multi-Index Targeted Risk Investment Division
BHFTI MFS® Research International Investment Division
46
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
BHFTI Morgan Stanley Discovery Investment Division
BHFTI PanAgora Global Diversified Risk Investment Division
BHFTI PIMCO Inflation Protected Bond Investment Division
BHFTI PIMCO Total Return Investment Division
BHFTI Schroders Global Multi-Asset Investment Division
BHFTI SSGA Emerging Markets Enhanced Index Investment Division (a)
BHFTI SSGA Growth and Income ETF Investment Division
BHFTI SSGA Growth ETF Investment Division
BHFTI T. Rowe Price Mid Cap Growth Investment Division
BHFTI Victory Sycamore Mid Cap Value Investment Division
BHFTII Baillie Gifford International Stock Investment Division
BHFTII BlackRock Bond Income Investment Division
BHFTII BlackRock Capital Appreciation Investment Division
BHFTII Brighthouse Asset Allocation 20 Investment Division
BHFTII Brighthouse Asset Allocation 40 Investment Division
BHFTII Brighthouse Asset Allocation 60 Investment Division
BHFTII Brighthouse Asset Allocation 80 Investment Division
BHFTII Brighthouse/Artisan Mid Cap Value Investment Division
BHFTII Brighthouse/Wellington Balanced Investment Division
BHFTII Brighthouse/Wellington Core Equity Opportunities Investment Division
BHFTII Frontier Mid Cap Growth Investment Division
BHFTII Jennison Growth Investment Division
BHFTII Loomis Sayles Small Cap Core Investment Division
BHFTII Loomis Sayles Small Cap Growth Investment Division
BHFTII MetLife Aggregate Bond Index Investment Division
BHFTII MetLife Mid Cap Stock Index Investment Division
BHFTII MetLife MSCI EAFE® Index Investment Division
BHFTII MetLife Russell 2000® Index Investment Division
BHFTII MetLife Stock Index Investment Division
BHFTII MFS® Total Return Investment Division
BHFTII MFS® Value Investment Division
BHFTII Neuberger Berman Genesis Investment Division
BHFTII T. Rowe Price Large Cap Growth Investment Division
BHFTII T. Rowe Price Small Cap Growth Investment Division
BHFTII VanEck Global Natural Resources Investment Division
BHFTII Western Asset Management Strategic Bond Opportunities Investment Division
BHFTII Western Asset Management U.S. Government Investment Division
FTVIPT Franklin Income VIP Investment Division
FTVIPT Franklin Mutual Shares VIP Investment Division
(a) This Investment Division began operations during the period ended December 31, 2025.
The following Investment Division ceased operations during the year ended December 31, 2025:
BHFTI SSGA Emerging Markets Enhanced Index II Investment Division
The operations of the Investment Divisions were affected by the following changes that occurred during the year ended December 31, 2025:
Merger:
Former Name
BHFTI SSGA Emerging Markets Enhanced Index Portfolio II
New Name
BHFTI SSGA Emerging Markets Enhanced Index Portfolio
47
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
Name Change:
Former Name
BHFTI American Funds® Growth Allocation
Portfolio
New Name
BHFTI American Funds® Aggressive Allocation Portfolio
Basis of Accounting
The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) applicable for variable life separate accounts registered as unit investment trusts, which follow the accounting and reporting guidance in Financial Accounting Standards Board Accounting Standards Codification Topic 946, Investment Companies.
Security Transactions
Security transactions are recorded on a trade date basis. Realized gains and losses on the sales of investments are computed on the basis of the average cost of the investment sold. Income from dividends and realized gain distributions are recorded on the ex-distribution date.
Security Valuation
An Investment Division’s investment in shares of a fund or portfolio of the Trusts is valued at fair value based on the closing net asset value (“NAV”) or price per share as determined by the Trusts as of the end of the year. All changes in fair value are recorded as changes in unrealized gains (losses) on investments in the statements of operations of the applicable Investment Divisions. The Separate Account defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Each Investment Division invests in shares of open-end mutual funds which calculate a daily NAV based on the fair value of the underlying securities in their portfolios. As a result, and as required by law, shares of open-end mutual funds are purchased and redeemed at their quoted daily NAV as reported by the Trusts at the close of each business day.
Accounting Standards Codification Topic 820, Fair Value Measurement (“ASC 820”) provides that the Separate Account is not required to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. Additionally, ASC 820 does not require certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The Separate Account’s investments in shares of a fund or portfolio of the Trusts are using NAV as a practical expedient, therefore investments are not categorized within the ASC 820 fair value hierarchy.
Federal Income Taxes
The operations of the Separate Account form a part of the total operations of the Company and are not taxed separately. The Company is taxed as a life insurance company under the provisions of the Internal Revenue Code (“IRC”). Under the current provisions of the IRC, the Company does not expect to incur federal income taxes on the earnings of the Separate Account to the extent the earnings are credited under the Policies. Accordingly, no charge is currently being made to the Separate Account for federal income taxes. The Company will periodically review the status of this policy in the event of changes in the tax law. A charge may be made in future years for any federal income taxes that would be attributable to the Policies.
Premium Payments
The Company deducts a sales charge for certain Policies and a state premium tax charge from premiums before amounts are allocated to the Separate Account. In the case of certain Policies, the Company also deducts a federal income tax charge before amounts are allocated to the Separate Account. This federal income tax charge is imposed in connection with certain Policies to recover a portion of the federal income tax adjustment attributable to policy acquisition expenses. Net premiums are reported as premium payments received from policy owners on the statements of changes in net assets of the applicable Investment Divisions and are credited as accumulation units.
48
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
Net Transfers
Assets transferred by the policy owner into or out of Investment Divisions within the Separate Account or into or out of the fixed account, which is part of the Company’s general account, are recorded on a net basis as net transfers in the statements of changes in net assets of the applicable Investment Divisions.
Use of Estimates
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported herein. Actual results could differ from these estimates.
Segment Disclosure
Each Investment Division of the Separate Account constitutes a single operating segment and therefore, a single reportable segment. The chief operating decision maker (“CODM”) oversees the activities of the Separate Account using information of each Investment Division. The Separate Account is engaged in a single line of business as a registered unit investment trust. The Separate Account is a funding vehicle for individual variable life policies with the assets owned by the Company to support the liabilities of the applicable insurance policies. The Investment Divisions have identified the Controller of the Company as the CODM.
The CODM uses increase (decrease) in net assets from operations as their performance measure in order to make operational decisions while monitoring the net assets of each of the Investment Divisions within the Separate Account. The accounting policies used to measure profit and loss of the segments are the same as those described in the summary of significant accounting policies. The measure of segment assets is reported on the Statements of Assets and Liabilities as net assets. Refer to the Statements of Operations and Changes in Net Assets and related notes for each Investment Division’s operating segment significant expenses. All assets and revenue are generated in the US and there is no customer greater than 10% of consolidated results for all periods presented.
The mortality and expense risk is assumed by the Company. The mortality risk assumed is the risk that those insured may die sooner than anticipated and therefore, the Company will pay an aggregate amount of death benefits greater than anticipated. The expense risk assumed is the risk that expenses incurred in issuing and administering the Policies will exceed the amounts realized from the administrative charges assessed against the Policies.
The mortality and expense risk charge, which ranges from 0.05% to 0.60%, is assessed through the redemption of units on a monthly basis and is recorded as a policy charge in the statements of changes in net assets of the applicable Investment Divisions. Other policy charges that are assessed through the redemption of units generally include: Cost of Insurance (“COI”) charges, a coverage expense charge, a policy fee, and charges for benefits provided by rider, if any. The COI charge is the primary charge under the policy for the death benefit provided by the Company which may vary by policy based on underwriting criteria. A coverage expense charge ranges from $0.04 to $2.30 for every $1,000 of the policy face amount and is assessed each month for the first 8 policy years. Policy fees are assessed monthly and range from $9 to $12 for Policies with face amounts less than $50,000 and from $8 to $15 for Policies with face amounts between $50,000 and $249,999 depending on the policy year. No policy fee applies to Policies issued with face amounts equal to or greater than $250,000. In addition, a surrender charge is imposed if the policy is partially or fully surrendered within the specified surrender charge period that ranges from $3.75 to $38.25 per $1,000 of the policy face amount. The Policies offer optional benefits that can be added to the policy by rider. The charge for riders that provide life insurance benefits can range from $0.02 to $0.40 per $1,000 of coverage and the charge for riders providing benefits in the event of disability can range from $0.00 to $61.44 per $100 of the benefit provided. These charges are paid to the Company and are recorded as a policy charge in the statements of changes in net assets of the applicable Investment Divisions.
49
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
BHFTI and BHFTII currently offer shares of their portfolios only to separate accounts established by the Company and other affiliated life insurance companies, along with separate accounts of Metropolitan Life Insurance Company and its affiliated insurance companies. BHFTI and BHFTII portfolios are managed by Brighthouse Investment Advisers, LLC (“Brighthouse Advisers”), an affiliate of the Company. Brighthouse Advisers is also the investment adviser to the portfolios of BHFTI and BHFTII.
50
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
As of December 31, 2025 | For the year ended | |||||||||||
Shares | Cost ($) | Cost of | Proceeds | |||||||||
American Funds® Global Small Capitalization Investment | 1,186,298 | 23,609,018 | 1,446,296 | 2,048,587 | ||||||||
American Funds® Growth Investment Division | 853,033 | 82,152,044 | 12,648,536 | 8,383,815 | ||||||||
American Funds® Growth-Income Investment Division | 775,592 | 38,497,354 | 9,545,796 | 5,007,239 | ||||||||
American Funds® The Bond Fund of America Investment | 836,224 | 8,578,761 | 1,123,229 | 1,616,907 | ||||||||
BHFTI AB Global Dynamic Allocation Investment Division | 87,527 | 925,188 | 177,887 | 165,208 | ||||||||
BHFTI American Funds® Aggressive Allocation Investment | 4,368,110 | 39,388,094 | 4,369,050 | 2,956,590 | ||||||||
BHFTI American Funds® Balanced Allocation Investment | 1,634,506 | 15,416,671 | 2,467,234 | 1,072,206 | ||||||||
BHFTI American Funds® Moderate Allocation Investment | 1,362,555 | 12,591,597 | 1,274,961 | 529,524 | ||||||||
BHFTI BlackRock Global Tactical Strategies Investment | 264,742 | 2,548,698 | 449,162 | 256,097 | ||||||||
BHFTI Brighthouse Asset Allocation 100 Investment | 2,968,786 | 33,236,021 | 3,625,183 | 3,246,098 | ||||||||
BHFTI Brighthouse Balanced Plus Investment Division | 311,412 | 3,165,968 | 231,946 | 179,952 | ||||||||
BHFTI Brighthouse/Templeton International Bond | 245,235 | 2,083,275 | 132,405 | 121,650 | ||||||||
BHFTI Brighthouse/Wellington Large Cap Research | 564,036 | 7,428,680 | 1,808,298 | 1,414,779 | ||||||||
BHFTI CBRE Global Real Estate Investment Division | 1,148,844 | 12,232,712 | 1,213,089 | 1,181,289 | ||||||||
BHFTI Harris Oakmark International Investment Division | 1,821,614 | 23,637,696 | 2,386,333 | 3,422,018 | ||||||||
BHFTI Invesco Balanced-Risk Allocation Investment | 155,243 | 1,394,659 | 177,046 | 228,633 | ||||||||
BHFTI Invesco Global Equity Investment Division | 798,232 | 17,483,909 | 3,549,486 | 1,570,789 | ||||||||
BHFTI Invesco Small Cap Growth Investment Division | 681,263 | 7,890,018 | 426,329 | 509,613 | ||||||||
BHFTI JPMorgan Global Active Allocation Investment | 133,353 | 1,475,392 | 106,283 | 177,630 | ||||||||
BHFTI JPMorgan Small Cap Value Investment Division | 400,603 | 5,017,509 | 1,251,612 | 1,094,629 | ||||||||
BHFTI Loomis Sayles Global Allocation Investment | 270,757 | 4,187,238 | 532,832 | 355,329 | ||||||||
BHFTI Loomis Sayles Growth Investment Division | 2,384,318 | 34,467,356 | 7,123,888 | 4,938,021 | ||||||||
BHFTI MetLife Multi-Index Targeted Risk Investment | 58,058 | 675,323 | 36,528 | 97,307 | ||||||||
BHFTI MFS® Research International Investment Division | 922,066 | 10,591,289 | 1,442,545 | 879,136 | ||||||||
BHFTI Morgan Stanley Discovery Investment Division | 1,747,387 | 20,667,498 | 1,677,157 | 1,603,646 | ||||||||
BHFTI PanAgora Global Diversified Risk Investment | 332,093 | 2,310,106 | 318,732 | 320,161 | ||||||||
BHFTI PIMCO Inflation Protected Bond Investment | 893,442 | 9,096,419 | 975,474 | 971,958 | ||||||||
BHFTI PIMCO Total Return Investment Division | 2,195,877 | 24,274,317 | 3,641,667 | 1,891,402 | ||||||||
BHFTI Schroders Global Multi-Asset Investment Division | 102,139 | 1,185,704 | 140,273 | 241,491 | ||||||||
BHFTI SSGA Emerging Markets Enhanced Index | 420,138 | 4,612,177 | 4,895,410 | 337,507 | ||||||||
BHFTI SSGA Growth and Income ETF Investment Division | 1,087,833 | 11,939,731 | 1,064,017 | 1,009,263 | ||||||||
BHFTI SSGA Growth ETF Investment Division | 1,816,190 | 19,796,681 | 2,353,640 | 1,916,491 | ||||||||
BHFTI T. Rowe Price Mid Cap Growth Investment Division | 2,972,404 | 29,215,251 | 4,694,964 | 1,869,630 | ||||||||
BHFTI Victory Sycamore Mid Cap Value Investment | 711,651 | 12,962,327 | 2,420,517 | 1,685,505 | ||||||||
BHFTII Baillie Gifford International Stock Investment | 389,788 | 4,275,091 | 507,467 | 602,580 | ||||||||
51
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
As of December 31, 2025 | For the year ended | |||||||||||
Shares | Cost ($) | Cost of | Proceeds | |||||||||
BHFTII BlackRock Bond Income Investment Division | 74,463 | 7,461,814 | 797,652 | 780,905 | ||||||||
BHFTII BlackRock Capital Appreciation Investment | 457,044 | 17,451,719 | 3,531,297 | 1,788,074 | ||||||||
BHFTII Brighthouse Asset Allocation 20 Investment | 292,852 | 2,963,350 | 458,233 | 934,925 | ||||||||
BHFTII Brighthouse Asset Allocation 40 Investment | 626,640 | 6,813,236 | 467,330 | 773,705 | ||||||||
BHFTII Brighthouse Asset Allocation 60 Investment | 5,581,165 | 61,838,267 | 4,173,974 | 1,997,321 | ||||||||
BHFTII Brighthouse Asset Allocation 80 Investment | 10,925,524 | 128,480,857 | 9,020,532 | 8,992,212 | ||||||||
BHFTII Brighthouse/Artisan Mid Cap Value Investment | 38,273 | 7,984,413 | 1,843,071 | 1,195,736 | ||||||||
BHFTII Brighthouse/Wellington Balanced Investment | 260,601 | 4,738,887 | 851,511 | 431,868 | ||||||||
BHFTII Brighthouse/Wellington Core Equity Opportunities | 823,232 | 23,993,241 | 3,970,531 | 1,741,283 | ||||||||
BHFTII Frontier Mid Cap Growth Investment Division | 276,455 | 7,917,878 | 770,235 | 763,449 | ||||||||
BHFTII Jennison Growth Investment Division | 1,428,278 | 21,209,129 | 4,994,769 | 3,363,174 | ||||||||
BHFTII Loomis Sayles Small Cap Core Investment | 38,482 | 8,955,417 | 1,412,826 | 651,963 | ||||||||
BHFTII Loomis Sayles Small Cap Growth Investment | 498,729 | 5,945,048 | 939,087 | 901,677 | ||||||||
BHFTII MetLife Aggregate Bond Index Investment | 3,323,870 | 34,565,166 | 4,263,815 | 2,675,719 | ||||||||
BHFTII MetLife Mid Cap Stock Index Investment Division | 1,734,373 | 28,570,882 | 4,037,257 | 1,900,434 | ||||||||
BHFTII MetLife MSCI EAFE® Index Investment Division | 2,078,174 | 27,679,641 | 2,123,122 | 5,314,005 | ||||||||
BHFTII MetLife Russell 2000® Index Investment Division | 1,268,647 | 22,290,650 | 2,937,826 | 2,208,533 | ||||||||
BHFTII MetLife Stock Index Investment Division | 1,544,609 | 79,199,473 | 14,379,097 | 9,891,986 | ||||||||
BHFTII MFS® Total Return Investment Division | 36,171 | 5,517,817 | 795,439 | 565,173 | ||||||||
BHFTII MFS® Value Investment Division | 2,788,577 | 39,759,851 | 6,910,744 | 4,254,390 | ||||||||
BHFTII Neuberger Berman Genesis Investment Division | 468,261 | 8,359,599 | 1,593,172 | 1,379,138 | ||||||||
BHFTII T. Rowe Price Large Cap Growth Investment | 1,624,344 | 34,993,691 | 6,868,670 | 4,241,067 | ||||||||
BHFTII T. Rowe Price Small Cap Growth Investment | 1,142,533 | 22,747,145 | 4,933,656 | 1,739,383 | ||||||||
BHFTII VanEck Global Natural Resources Investment | 324,380 | 3,426,362 | 428,516 | 941,211 | ||||||||
BHFTII Western Asset Management Strategic Bond | 1,352,065 | 16,200,921 | 2,132,322 | 2,047,757 | ||||||||
BHFTII Western Asset Management U.S. Government | 287,128 | 3,183,813 | 717,308 | 464,590 | ||||||||
FTVIPT Franklin Income VIP Investment Division | 86,177 | 1,260,338 | 141,310 | 42,499 | ||||||||
FTVIPT Franklin Mutual Shares VIP Investment Division | 114,135 | 1,944,868 | 326,153 | 171,898 | ||||||||
52
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
American Funds® | American Funds® | American Funds® | American Funds® | BHFTI AB Global | BHFTI American Funds® | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 (b) | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||
Units beginning of year | 253,645 | 257,269 | 605,984 | 679,776 | 575,451 | 621,874 | 297,881 | 270,327 | 47,064 | 45,885 | 1,101,601 | 1,123,151 | |||||||||||||||||||||||||||||||||||||||||||||||
Units issued and transferred | 22,653 | 29,514 | 46,365 | 42,775 | 601,218 | 32,580 | 39,593 | 61,261 | 3,721 | 3,363 | 55,414 | 68,562 | |||||||||||||||||||||||||||||||||||||||||||||||
Units redeemed and transferred | (35,215) | (33,138) | (69,977) | (116,567) | (646,568) | (79,003) | (68,856) | (33,707) | (10,105) | (2,184) | (107,335) | (90,112) | |||||||||||||||||||||||||||||||||||||||||||||||
Units end of year | 241,083 | 253,645 | 582,372 | 605,984 | 530,101 | 575,451 | 268,618 | 297,881 | 40,680 | 47,064 | 1,049,680 | 1,101,601 | |||||||||||||||||||||||||||||||||||||||||||||||
BHFTI American Funds® | BHFTI American Funds® | BHFTI BlackRock | BHFTI Brighthouse | BHFTI Brighthouse | BHFTI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||
Units beginning of year | 458,704 | 469,642 | 435,044 | 449,896 | 124,237 | 126,396 | 738,516 | 799,826 | 132,516 | 148,529 | 146,059 | 137,444 | |||||||||||||||||||||||||||||||||||||||||||||||
Units issued and transferred | 51,560 | 32,654 | 32,229 | 32,655 | 12,460 | 9,063 | 53,082 | 50,199 | 11,028 | 23,841 | 16,010 | 30,739 | |||||||||||||||||||||||||||||||||||||||||||||||
Units redeemed and transferred | (44,944) | (43,592) | (36,776) | (47,507) | (17,753) | (11,222) | (84,279) | (111,509) | (13,677) | (39,854) | (15,708) | (22,124) | |||||||||||||||||||||||||||||||||||||||||||||||
Units end of year | 465,320 | 458,704 | 430,497 | 435,044 | 118,944 | 124,237 | 707,319 | 738,516 | 129,867 | 132,516 | 146,361 | 146,059 | |||||||||||||||||||||||||||||||||||||||||||||||
BHFTI Brighthouse/ | BHFTI CBRE | BHFTI Harris Oakmark | BHFTI Invesco | BHFTI Invesco | BHFTI Invesco | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||
Units beginning of year | 125,795 | 134,318 | 373,944 | 381,669 | 561,314 | 555,603 | 789,100 | 779,452 | 201,620 | 220,269 | 88,427 | 96,180 | |||||||||||||||||||||||||||||||||||||||||||||||
Units issued and transferred | 6,760 | 8,640 | 43,375 | 77,700 | 45,482 | 87,253 | 97,463 | 100,259 | 13,135 | 19,261 | 9,805 | 9,083 | |||||||||||||||||||||||||||||||||||||||||||||||
Units redeemed and transferred | (23,064) | (17,163) | (53,335) | (85,425) | (98,200) | (81,542) | (171,497) | (90,611) | (22,240) | (37,910) | (10,519) | (16,836) | |||||||||||||||||||||||||||||||||||||||||||||||
Units end of year | 109,491 | 125,795 | 363,984 | 373,944 | 508,596 | 561,314 | 715,066 | 789,100 | 192,515 | 201,620 | 87,713 | 88,427 | |||||||||||||||||||||||||||||||||||||||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
(b) During 2025, the Separate Account effectuated a 1-for‑10 unit change to certain contract owners in the American Funds® Growth-Income Investment Division, resulting in a reduction of unit values. The unit value and number of units outstanding for the impacted policy owners were retroactively adjusted to reflect this change in each period presented. There was no change to the total net assets of the fund or to any policy owner’s investment in the fund for any period presented.
|
54
55
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
BHFTI JPMorgan | BHFTI JPMorgan | BHFTI Loomis Sayles | BHFTI Loomis | BHFTI MetLife | BHFTI MFS® | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||
Units beginning of year | 761,281 | 761,851 | 99,477 | 107,936 | 94,468 | 107,757 | 708,047 | 770,923 | 36,058 | 38,025 | 308,936 | 314,497 | |||||||||||||||||||||||||||||||||||||||||||||||
Units issued and transferred | 55,723 | 68,569 | 19,414 | 11,847 | 5,993 | 8,585 | 45,533 | 60,850 | 3,753 | 4,655 | 23,054 | 42,222 | |||||||||||||||||||||||||||||||||||||||||||||||
Units redeemed and transferred | (107,834) | (69,139) | (26,107) | (20,306) | (10,473) | (21,874) | (98,940) | (123,726) | (7,190) | (6,622) | (32,035) | (47,783) | |||||||||||||||||||||||||||||||||||||||||||||||
Units end of year | 709,170 | 761,281 | 92,784 | 99,477 | 89,988 | 94,468 | 654,640 | 708,047 | 32,621 | 36,058 | 299,955 | 308,936 | |||||||||||||||||||||||||||||||||||||||||||||||
BHFTI Morgan Stanley | BHFTI PanAgora | BHFTI PIMCO Inflation | BHFTI PIMCO | BHFTI Schroders | BHFTI SSGA | |||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 (a) | ||||||||||||||||||||||||||||||||||||||||||||||
Units beginning of year | 161,890 | 179,236 | 1,496,307 | 1,599,930 | 388,879 | 371,992 | 749,113 | 734,711 | 699,948 | 898,070 | — | |||||||||||||||||||||||||||||||||||||||||||||
Units issued and transferred | 22,422 | 21,578 | 160,667 | 196,895 | 50,282 | 58,524 | 126,144 | 110,344 | 47,044 | 108,426 | 312,188 | |||||||||||||||||||||||||||||||||||||||||||||
Units redeemed and transferred | (22,519) | (38,924) | (304,938) | (300,518) | (57,876) | (41,637) | (105,062) | (95,942) | (140,849) | (306,548) | (25,334) | |||||||||||||||||||||||||||||||||||||||||||||
Units end of year | 161,793 | 161,890 | 1,352,036 | 1,496,307 | 381,285 | 388,879 | 770,195 | 749,113 | 606,143 | 699,948 | 286,854 | |||||||||||||||||||||||||||||||||||||||||||||
BHFTI SSGA Growth | BHFTI SSGA | BHFTI T. Rowe Price | BHFTI Victory Sycamore | BHFTII Baillie Gifford | BHFTII BlackRock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||
Units beginning of year | 363,772 | 398,864 | 547,312 | 589,766 | 427,667 | 454,641 | 121,927 | 127,987 | 118,237 | 116,981 | 55,941 | 58,370 | |||||||||||||||||||||||||||||||||||||||||||||||
Units issued and transferred | 22,653 | 36,244 | 30,539 | 50,302 | 42,668 | 44,482 | 10,872 | 10,675 | 12,213 | 14,366 | 5,947 | 8,136 | |||||||||||||||||||||||||||||||||||||||||||||||
Units redeemed and transferred | (41,223) | (71,336) | (65,405) | (92,756) | (51,644) | (71,456) | (20,081) | (16,735) | (20,391) | (13,110) | (8,759) | (10,565) | |||||||||||||||||||||||||||||||||||||||||||||||
Units end of year | 345,202 | 363,772 | 512,446 | 547,312 | 418,691 | 427,667 | 112,718 | 121,927 | 110,059 | 118,237 | 53,129 | 55,941 | |||||||||||||||||||||||||||||||||||||||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
(b) During 2025, the Separate Account effectuated a 1-for‑10 unit change to certain contract owners in the American Funds® Growth-Income Investment Division, resulting in a reduction of unit values. The unit value and number of units outstanding for the impacted policy owners were retroactively adjusted to reflect this change in each period presented. There was no change to the total net assets of the fund or to any policy owner’s investment in the fund for any period presented.
|
56
57
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
BHFTII BlackRock | BHFTII Brighthouse | BHFTII Brighthouse | BHFTII Brighthouse | BHFTII Brighthouse | BHFTII Brighthouse/ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||
Units beginning of year | 72,741 | 78,958 | 142,286 | 115,005 | 233,362 | 248,476 | 1,653,170 | 1,716,632 | 3,148,095 | 3,355,428 | 52,153 | 53,687 | |||||||||||||||||||||||||||||||||||||||||||||||
Units issued and transferred | 6,892 | 7,449 | 28,865 | 46,487 | 16,883 | 21,926 | 93,420 | 104,867 | 170,060 | 214,763 | 5,829 | 5,740 | |||||||||||||||||||||||||||||||||||||||||||||||
Units redeemed and transferred | (9,516) | (13,666) | (53,160) | (19,206) | (36,181) | (37,040) | (115,445) | (168,329) | (331,928) | (422,096) | (10,870) | (7,274) | |||||||||||||||||||||||||||||||||||||||||||||||
Units end of year | 70,117 | 72,741 | 117,991 | 142,286 | 214,064 | 233,362 | 1,631,145 | 1,653,170 | 2,986,227 | 3,148,095 | 47,112 | 52,153 | |||||||||||||||||||||||||||||||||||||||||||||||
BHFTII Brighthouse/ | BHFTII Brighthouse/ | BHFTII Frontier | BHFTII Jennison | BHFTII Loomis Sayles | BHFTII Loomis Sayles | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||
Units beginning of year | 21,739 | 23,270 | 119,292 | 125,624 | 30,392 | 32,452 | 192,296 | 189,659 | 46,118 | 50,224 | 108,138 | 109,229 | |||||||||||||||||||||||||||||||||||||||||||||||
Units issued and transferred | 1,720 | 2,544 | 9,344 | 9,975 | 2,317 | 2,365 | 19,806 | 35,057 | 4,246 | 4,363 | 9,677 | 16,351 | |||||||||||||||||||||||||||||||||||||||||||||||
Units redeemed and transferred | (2,607) | (4,075) | (13,424) | (16,307) | (3,696) | (4,425) | (37,588) | (32,420) | (5,337) | (8,469) | (21,081) | (17,442) | |||||||||||||||||||||||||||||||||||||||||||||||
Units end of year | 20,852 | 21,739 | 115,212 | 119,292 | 29,013 | 30,392 | 174,514 | 192,296 | 45,027 | 46,118 | 96,734 | 108,138 | |||||||||||||||||||||||||||||||||||||||||||||||
BHFTII MetLife | BHFTII MetLife | BHFTII MetLife | BHFTII MetLife | BHFTII MetLife | BHFTII MFS® | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||
Units beginning of year | 1,195,484 | 1,121,766 | 335,077 | 357,868 | 1,092,739 | 1,082,221 | 294,932 | 311,674 | 317,979 | 349,888 | 28,262 | 31,266 | |||||||||||||||||||||||||||||||||||||||||||||||
Units issued and transferred | 207,862 | 238,723 | 37,164 | 33,962 | 75,800 | 151,796 | 34,486 | 38,068 | 26,239 | 27,371 | 2,415 | 2,566 | |||||||||||||||||||||||||||||||||||||||||||||||
Units redeemed and transferred | (170,360) | (165,005) | (39,820) | (56,753) | (195,054) | (141,278) | (42,058) | (54,810) | (42,934) | (59,280) | (3,827) | (5,570) | |||||||||||||||||||||||||||||||||||||||||||||||
Units end of year | 1,232,986 | 1,195,484 | 332,421 | 335,077 | 973,485 | 1,092,739 | 287,360 | 294,932 | 301,284 | 317,979 | 26,850 | 28,262 | |||||||||||||||||||||||||||||||||||||||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
(b) During 2025, the Separate Account effectuated a 1-for‑10 unit change to certain contract owners in the American Funds® Growth-Income Investment Division, resulting in a reduction of unit values. The unit value and number of units outstanding for the impacted policy owners were retroactively adjusted to reflect this change in each period presented. There was no change to the total net assets of the fund or to any policy owner’s investment in the fund for any period presented.
|
58
59
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
BHFTII MFS® Value | BHFTII Neuberger | BHFTII T. Rowe Price | BHFTII T. Rowe Price | BHFTII VanEck Global | BHFTII Western Asset | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||
Units beginning of year | 589,985 | 609,918 | 104,156 | 107,154 | 339,391 | 367,179 | 187,071 | 197,649 | 22,887 | 20,999 | 254,097 | 258,610 | |||||||||||||||||||||||||||||||||||||||||||||||
Units issued and transferred | 54,841 | 57,541 | 11,121 | 9,534 | 26,204 | 36,772 | 15,497 | 20,427 | 1,874 | 4,539 | 30,296 | 35,545 | |||||||||||||||||||||||||||||||||||||||||||||||
Units redeemed and transferred | (87,746) | (77,474) | (21,235) | (12,532) | (48,459) | (64,560) | (24,137) | (31,005) | (5,388) | (2,651) | (47,502) | (40,058) | |||||||||||||||||||||||||||||||||||||||||||||||
Units end of year | 557,080 | 589,985 | 94,042 | 104,156 | 317,136 | 339,391 | 178,431 | 187,071 | 19,373 | 22,887 | 236,891 | 254,097 | |||||||||||||||||||||||||||||||||||||||||||||||
BHFTII Western Asset | FTVIPT Franklin | FTVIPT Franklin | ||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||
Units beginning of year | 96,610 | 120,384 | 7,641 | 7,301 | 24,908 | 24,588 | ||||||||||||||||||||||||
Units issued and transferred | 24,042 | 12,361 | 619 | 759 | 2,343 | 3,060 | ||||||||||||||||||||||||
Units redeemed and transferred | (19,140) | (36,135) | (459) | (419) | (3,118) | (2,740) | ||||||||||||||||||||||||
Units end of year | 101,512 | 96,610 | 7,801 | 7,641 | 24,133 | 24,908 | ||||||||||||||||||||||||
(a) For the period April 25, 2025 to December 31, 2025.
(b) During 2025, the Separate Account effectuated a 1-for‑10 unit change to certain contract owners in the American Funds® Growth-Income Investment Division, resulting in a reduction of unit values. The unit value and number of units outstanding for the impacted policy owners were retroactively adjusted to reflect this change in each period presented. There was no change to the total net assets of the fund or to any policy owner’s investment in the fund for any period presented.
60
61
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
The following table is a summary of unit values and units outstanding for the Policies, net assets, net investment income ratios, expense ratios, excluding expenses for the underlying fund or portfolio, and total return ratios for the respective stated periods in the five years ended December 31, 2025:
As of December 31 | For the year ended December 31 | |||||||||||||||||||||
Units | Unit Value | Net | Investment1 | Expense2 | Total3 | |||||||||||||||||
American Funds® Global | 2025 | 241,083 | 93.69 | 22,587,106 | 0.35 | 0.00 | 14.64 | |||||||||||||||
Small Capitalization | 2024 | 253,645 | 81.73 | 20,729,999 | 1.06 | 0.00 | 2.33 | |||||||||||||||
Investment Division | 2023 | 257,269 | 79.87 | 20,547,119 | 0.26 | 0.00 | 16.17 | |||||||||||||||
2022 | 269,198 | 68.75 | 18,506,777 | — | 0.00 | (29.55) | ||||||||||||||||
2021 | 266,588 | 97.59 | 26,016,168 | — | 0.00 | 6.74 | ||||||||||||||||
American Funds® Growth | 2025 | 582,372 | 203.31 | 118,401,011 | 0.15 | 0.00 | 20.23 | |||||||||||||||
Investment Division | 2024 | 605,984 | 169.10 | 102,471,961 | 0.33 | 0.00 | 31.63 | |||||||||||||||
2023 | 679,776 | 128.47 | 87,331,538 | 0.36 | 0.00 | 38.48 | ||||||||||||||||
2022 | 731,046 | 92.77 | 67,820,139 | 0.32 | 0.00 | (29.94) | ||||||||||||||||
2021 | 747,386 | 132.41 | 98,961,999 | 0.22 | 0.00 | 21.99 | ||||||||||||||||
American Funds® | 2025 | 530,101 | 96.97 | 51,406,203 | 0.91 | 0.00 | 12.93 | |||||||||||||||
Growth-Income Investment | 2024 | 575,451 | 82.14 | 47,265,855 | 1.11 | 0.00 | 24.23 | |||||||||||||||
Division4 | 2023 | 621,874 | 66.12 | 41,117,393 | 1.37 | 0.00 | 26.14 | |||||||||||||||
2022 | 669,578 | 52.42 | 35,097,804 | 1.28 | 0.00 | (16.49) | ||||||||||||||||
2021 | 711,994 | 62.77 | 44,692,285 | 1.13 | 0.00 | 24.10 | ||||||||||||||||
American Funds® The Bond | 2025 | 268,618 | 29.17 | 7,835,417 | 4.15 | 0.00 | 7.26 | |||||||||||||||
Fund of America Investment | 2024 | 297,881 | 27.20 | 8,100,902 | 4.27 | 0.00 | 1.16 | |||||||||||||||
Division | 2023 | 270,327 | 26.88 | 7,267,576 | 3.59 | 0.00 | 5.02 | |||||||||||||||
2022 | 256,967 | 25.60 | 6,578,255 | 2.90 | 0.00 | (12.58) | ||||||||||||||||
2021 | 273,400 | 29.28 | 8,006,065 | 1.42 | 0.00 | (0.31) | ||||||||||||||||
BHFTI AB Global Dynamic | 2025 | 40,680 | 20.70 | 842,011 | 3.18 | 0.00 | 11.56 | |||||||||||||||
Allocation Investment | 2024 | 47,064 | 18.55 | 873,191 | 1.26 | 0.00 | 7.31 | |||||||||||||||
Division | 2023 | 45,885 | 17.29 | 793,297 | 3.70 | 0.00 | 11.64 | |||||||||||||||
2022 | 131,531 | 15.49 | 2,036,866 | 4.27 | 0.00 | (20.43) | ||||||||||||||||
2021 | 140,211 | 19.46 | 2,728,703 | 0.22 | 0.00 | 9.28 | ||||||||||||||||
BHFTI American Funds® | 2025 | 1,049,680 | 42.40 | 44,511,045 | 1.45 | 0.00 | 20.32 | |||||||||||||||
Aggressive Allocation | 2024 | 1,101,601 | 35.24 | 38,824,391 | 1.47 | 0.00 | 14.96 | |||||||||||||||
Investment Division | 2023 | 1,123,151 | 30.66 | 34,434,003 | 2.35 | 0.00 | 20.66 | |||||||||||||||
2022 | 1,092,961 | 25.41 | 27,769,892 | 1.42 | 0.00 | (18.37) | ||||||||||||||||
2021 | 1,104,670 | 31.13 | 34,383,718 | 1.06 | 0.00 | 16.21 | ||||||||||||||||
BHFTI American Funds® | 2025 | 465,320 | 35.51 | 16,524,858 | 2.08 | 0.00 | 17.35 | |||||||||||||||
Balanced Allocation | 2024 | 458,704 | 30.26 | 13,881,587 | 1.92 | 0.00 | 12.07 | |||||||||||||||
Investment Division | 2023 | 469,642 | 27.00 | 12,681,746 | 2.53 | 0.00 | 16.72 | |||||||||||||||
2022 | 438,394 | 23.14 | 10,142,313 | 1.75 | 0.00 | (16.53) | ||||||||||||||||
2021 | 454,031 | 27.72 | 12,584,441 | 1.44 | 0.00 | 12.55 | ||||||||||||||||
BHFTI American Funds® | 2025 | 430,497 | 29.78 | 12,821,640 | 2.72 | 0.00 | 14.78 | |||||||||||||||
Moderate Allocation | 2024 | 435,044 | 25.95 | 11,288,619 | 2.41 | 0.00 | 9.43 | |||||||||||||||
Investment Division | 2023 | 449,896 | 23.71 | 10,667,665 | 2.82 | 0.00 | 13.23 | |||||||||||||||
2022 | 408,660 | 20.94 | 8,557,754 | 1.85 | 0.00 | (14.41) | ||||||||||||||||
2021 | 520,332 | 24.47 | 12,730,351 | 1.71 | 0.00 | 9.98 | ||||||||||||||||
62
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
As of December 31 | For the year ended December 31 | |||||||||||||||||||||
Units | Unit Value | Net | Investment1 | Expense2 | Total3 | |||||||||||||||||
BHFTI BlackRock Global | 2025 | 118,944 | 20.23 | 2,406,243 | 1.37 | 0.00 | 11.44 | |||||||||||||||
Tactical Strategies | 2024 | 124,237 | 18.15 | 2,255,340 | 1.50 | 0.00 | 5.80 | |||||||||||||||
Investment Division | 2023 | 126,396 | 17.16 | 2,168,661 | 3.20 | 0.00 | 13.32 | |||||||||||||||
2022 | 131,745 | 15.14 | 1,994,801 | 2.28 | 0.00 | (18.89) | ||||||||||||||||
2021 | 133,249 | 18.67 | 2,487,323 | 1.35 | 0.00 | 9.79 | ||||||||||||||||
BHFTI Brighthouse Asset | 2025 | 707,319 | 51.84 | 36,664,508 | 1.36 | 0.00 | 17.41 | |||||||||||||||
Allocation 100 Investment | 2024 | 738,516 | 44.15 | 32,605,603 | 1.11 | 0.00 | 13.65 | |||||||||||||||
Division | 2023 | 799,826 | 38.85 | 31,071,288 | 2.97 | 0.00 | 21.10 | |||||||||||||||
2022 | 867,941 | 32.08 | 27,842,628 | 1.63 | 0.00 | (19.89) | ||||||||||||||||
2021 | 859,128 | 40.04 | 34,401,536 | 1.31 | 0.00 | 18.34 | ||||||||||||||||
BHFTI Brighthouse Balanced | 2025 | 129,867 | 22.71 | 2,949,069 | 3.94 | 0.00 | 11.95 | |||||||||||||||
Plus Investment Division | 2024 | 132,516 | 20.28 | 2,688,035 | 2.53 | 0.00 | 3.76 | |||||||||||||||
2023 | 148,529 | 19.55 | 2,903,712 | 3.22 | 0.00 | 9.24 | ||||||||||||||||
2022 | 185,484 | 17.90 | 3,319,565 | 2.45 | 0.00 | (21.81) | ||||||||||||||||
2021 | 194,198 | 22.89 | 4,444,735 | 2.49 | 0.00 | 7.54 | ||||||||||||||||
BHFTI Brighthouse/Templeton | 2025 | 146,361 | 13.62 | 1,993,764 | — | 0.00 | 16.64 | |||||||||||||||
International Bond | 2024 | 146,059 | 11.68 | 1,705,763 | — | 0.00 | (11.21) | |||||||||||||||
Investment Division | 2023 | 137,444 | 13.15 | 1,807,810 | — | 0.00 | 3.70 | |||||||||||||||
2022 | 151,191 | 12.68 | 1,917,704 | — | 0.00 | (4.42) | ||||||||||||||||
2021 | 128,142 | 13.27 | 1,700,494 | — | 0.00 | (4.69) | ||||||||||||||||
BHFTI Brighthouse/Wellington | 2025 | 109,491 | 75.93 | 8,313,891 | 0.54 | 0.00 | 15.91 | |||||||||||||||
Large Cap Research | 2024 | 125,795 | 65.51 | 8,240,682 | 0.60 | 0.00 | 21.69 | |||||||||||||||
Investment Division | 2023 | 134,318 | 53.83 | 7,230,949 | 0.84 | 0.00 | 25.74 | |||||||||||||||
2022 | 132,083 | 42.82 | 5,655,237 | 0.72 | 0.00 | (19.02) | ||||||||||||||||
2021 | 135,908 | 52.87 | 7,186,079 | 0.86 | 0.00 | 24.38 | ||||||||||||||||
BHFTI CBRE Global Real | 2025 | 363,984 | 33.52 | 12,200,719 | 2.86 | 0.00 | 7.11 | |||||||||||||||
Estate Investment Division | 2024 | 373,944 | 31.29 | 11,702,181 | 3.63 | 0.00 | 0.66 | |||||||||||||||
2023 | 381,669 | 31.09 | 11,866,038 | 2.73 | 0.00 | 12.87 | ||||||||||||||||
2022 | 376,980 | 27.55 | 10,384,026 | 4.38 | 0.00 | (24.71) | ||||||||||||||||
2021 | 368,449 | 36.59 | 13,480,666 | 3.00 | 0.00 | 34.70 | ||||||||||||||||
BHFTI Harris Oakmark | 2025 | 508,596 | 54.98 | 27,961,770 | 2.31 | 0.00 | 33.17 | |||||||||||||||
International Investment | 2024 | 561,314 | 41.29 | 23,174,195 | 2.32 | 0.00 | (4.73) | |||||||||||||||
Division | 2023 | 555,603 | 43.34 | 24,078,148 | 2.08 | 0.00 | 19.26 | |||||||||||||||
2022 | 620,295 | 36.34 | 22,540,507 | 2.42 | 0.00 | (15.78) | ||||||||||||||||
2021 | 606,095 | 43.15 | 26,151,800 | 0.82 | 0.00 | 8.66 | ||||||||||||||||
BHFTI Invesco Balanced-Risk | 2025 | 715,066 | 1.91 | 1,369,243 | 6.01 | 0.00 | 13.14 | |||||||||||||||
Allocation Investment | 2024 | 789,100 | 1.69 | 1,335,496 | 1.47 | 0.00 | 4.00 | |||||||||||||||
Division | 2023 | 779,452 | 1.63 | 1,268,459 | 3.80 | 0.00 | 6.44 | |||||||||||||||
2022 | 1,500,310 | 1.53 | 2,293,914 | 5.77 | 0.00 | (12.41) | ||||||||||||||||
2021 | 1,293,897 | 1.75 | 2,258,625 | 3.01 | 0.00 | 9.69 | ||||||||||||||||
BHFTI Invesco Global Equity | 2025 | 192,515 | 103.87 | 19,995,706 | 0.15 | 0.00 | 15.88 | |||||||||||||||
Investment Division | 2024 | 201,620 | 89.63 | 18,070,911 | 0.27 | 0.00 | 16.42 | |||||||||||||||
2023 | 220,269 | 76.99 | 16,957,883 | 0.37 | 0.00 | 34.99 | ||||||||||||||||
2022 | 239,804 | 57.03 | 13,676,679 | — | 0.00 | (31.70) | ||||||||||||||||
2021 | 235,172 | 83.50 | 19,637,245 | 0.13 | 0.00 | 15.76 | ||||||||||||||||
63
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
As of December 31 | For the year ended December 31 | |||||||||||||||||||||
Units | Unit Value | Net | Investment1 | Expense2 | Total3 | |||||||||||||||||
BHFTI Invesco Small Cap | 2025 | 87,713 | 78.83 | 6,914,819 | — | 0.00 | 6.17 | |||||||||||||||
Growth Investment Division | 2024 | 88,427 | 74.25 | 6,565,882 | — | 0.00 | 16.59 | |||||||||||||||
2023 | 96,180 | 63.69 | 6,125,607 | — | 0.00 | 12.33 | ||||||||||||||||
2022 | 99,463 | 56.70 | 5,639,422 | — | 0.00 | (35.04) | ||||||||||||||||
2021 | 93,039 | 87.28 | 8,120,686 | — | 0.00 | 7.12 | ||||||||||||||||
BHFTI JPMorgan Global | 2025 | 709,170 | 2.22 | 1,577,561 | 2.37 | 0.00 | 13.92 | |||||||||||||||
Active Allocation Investment | 2024 | 761,281 | 1.95 | 1,486,548 | 0.93 | 0.00 | 5.29 | |||||||||||||||
Division | 2023 | 761,851 | 1.85 | 1,412,979 | 2.02 | 0.00 | 10.51 | |||||||||||||||
2022 | 1,258,019 | 1.68 | 2,111,391 | 2.48 | 0.00 | (17.54) | ||||||||||||||||
2021 | 1,274,507 | 2.04 | 2,594,215 | 0.48 | 0.00 | 9.64 | ||||||||||||||||
BHFTI JPMorgan Small Cap | 2025 | 92,784 | 51.72 | 4,799,219 | 1.14 | 0.00 | 12.48 | |||||||||||||||
Value Investment Division | 2024 | 99,477 | 45.98 | 4,574,359 | 1.77 | 0.00 | 9.20 | |||||||||||||||
2023 | 107,936 | 42.11 | 4,545,317 | 1.38 | 0.00 | 13.21 | ||||||||||||||||
2022 | 101,604 | 37.20 | 3,779,284 | 1.14 | 0.00 | (13.21) | ||||||||||||||||
2021 | 108,961 | 42.86 | 4,669,877 | 1.16 | 0.00 | 33.01 | ||||||||||||||||
BHFTI Loomis Sayles Global | 2025 | 89,988 | 49.98 | 4,497,279 | 1.18 | 0.00 | 12.94 | |||||||||||||||
Allocation Investment | 2024 | 94,468 | 44.25 | 4,180,334 | 1.09 | 0.00 | 12.51 | |||||||||||||||
Division | 2023 | 107,757 | 39.33 | 4,238,275 | — | 0.00 | 22.51 | |||||||||||||||
2022 | 111,639 | 32.10 | 3,584,093 | — | 0.00 | (23.12) | ||||||||||||||||
2021 | 114,139 | 41.76 | 4,766,293 | 1.03 | 0.00 | 14.57 | ||||||||||||||||
BHFTI Loomis Sayles Growth | 2025 | 654,640 | 70.22 | 45,969,653 | — | 0.00 | 15.21 | |||||||||||||||
Investment Division | 2024 | 708,047 | 60.95 | 43,154,522 | — | 0.00 | 34.47 | |||||||||||||||
2023 | 770,923 | 45.32 | 34,940,910 | — | 0.00 | 52.06 | ||||||||||||||||
2022 | 877,313 | 29.81 | 26,148,943 | — | 0.00 | (27.86) | ||||||||||||||||
2021 | 885,380 | 41.32 | 36,582,522 | 0.20 | 0.00 | 18.66 | ||||||||||||||||
BHFTI MetLife Multi-Index | 2025 | 32,621 | 20.77 | 677,532 | 0.60 | 0.00 | 9.08 | |||||||||||||||
Targeted Risk Investment | 2024 | 36,058 | 19.04 | 686,600 | 2.37 | 0.00 | 7.48 | |||||||||||||||
Division | 2023 | 38,025 | 17.72 | 673,664 | 2.33 | 0.00 | 13.82 | |||||||||||||||
2022 | 42,957 | 15.56 | 668,607 | 1.81 | 0.00 | (21.09) | ||||||||||||||||
2021 | 45,884 | 19.72 | 905,035 | 1.62 | 0.00 | 9.72 | ||||||||||||||||
BHFTI MFS® Research | 2025 | 299,955 | 41.68 | 12,503,212 | 1.96 | 0.00 | 22.72 | |||||||||||||||
International Investment | 2024 | 308,936 | 33.97 | 10,493,500 | 1.88 | 0.00 | 3.17 | |||||||||||||||
Division | 2023 | 314,497 | 32.92 | 10,354,152 | 1.74 | 0.00 | 13.05 | |||||||||||||||
2022 | 332,399 | 29.12 | 9,680,094 | 2.08 | 0.00 | (17.30) | ||||||||||||||||
2021 | 332,252 | 35.22 | 11,700,485 | 1.14 | 0.00 | 11.98 | ||||||||||||||||
BHFTI Morgan Stanley | 2025 | 161,793 | 97.74 | 15,813,852 | — | 0.00 | 13.55 | |||||||||||||||
Discovery Investment Division | 2024 | 161,890 | 86.08 | 13,935,026 | — | 0.00 | 39.34 | |||||||||||||||
2023 | 179,236 | 61.78 | 11,072,572 | — | 0.00 | 41.23 | ||||||||||||||||
2022 | 181,349 | 43.74 | 7,932,304 | — | 0.00 | (62.47) | ||||||||||||||||
2021 | 163,009 | 116.54 | 18,997,835 | — | 0.00 | (10.54) | ||||||||||||||||
BHFTI PanAgora Global | 2025 | 1,352,036 | 1.61 | 2,178,527 | 10.15 | 0.00 | 19.84 | |||||||||||||||
Diversified Risk Investment | 2024 | 1,496,307 | 1.34 | 2,011,764 | 0.36 | 0.00 | 4.11 | |||||||||||||||
Division | 2023 | 1,599,930 | 1.29 | 2,066,117 | 6.77 | 0.00 | 4.71 | |||||||||||||||
2022 | 1,156,157 | 1.23 | 1,425,861 | 17.06 | 0.00 | (25.66) | ||||||||||||||||
2021 | 137,716 | 1.66 | 228,474 | — | 0.00 | 6.39 | ||||||||||||||||
64
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
As of December 31 | For the year ended December 31 | |||||||||||||||||||||||
Units | Unit Value | Net | Investment1 | Expense2 | Total3 | |||||||||||||||||||
BHFTI PIMCO Inflation | 2025 | 381,285 | 24.14 | 9,202,455 | 1.23 | 0.00 | 7.93 | |||||||||||||||||
Protected Bond Investment | 2024 | 388,879 | 22.36 | 8,696,086 | — | 0.00 | 2.53 | |||||||||||||||||
Division | 2023 | 371,992 | 21.81 | 8,113,480 | 2.41 | 0.00 | 3.74 | |||||||||||||||||
2022 | 396,733 | 21.02 | 8,340,895 | 6.63 | 0.00 | (11.60) | ||||||||||||||||||
2021 | 410,712 | 23.78 | 9,767,816 | 0.94 | 0.00 | 5.61 | ||||||||||||||||||
BHFTI PIMCO Total Return | 2025 | 770,195 | 28.97 | 22,310,110 | 5.54 | 0.00 | 9.21 | |||||||||||||||||
Investment Division | 2024 | 749,113 | 26.52 | 19,869,172 | 3.05 | 0.00 | 2.73 | |||||||||||||||||
2023 | 734,711 | 25.82 | 18,969,710 | 3.08 | 0.00 | 6.22 | ||||||||||||||||||
2022 | 751,897 | 24.31 | 18,276,115 | 3.17 | 0.00 | (14.34) | ||||||||||||||||||
2021 | 820,792 | 28.38 | 23,290,461 | 2.03 | 0.00 | (1.13) | ||||||||||||||||||
BHFTI Schroders Global | 2025 | 606,143 | 2.12 | 1,285,927 | 1.45 | 0.00 | 9.85 | |||||||||||||||||
Multi-Asset Investment | 2024 | 699,948 | 1.93 | 1,351,750 | 1.69 | 0.00 | 9.70 | |||||||||||||||||
Division | 2023 | 898,070 | 1.76 | 1,580,947 | 1.89 | 0.00 | 15.02 | |||||||||||||||||
2022 | 928,139 | 1.53 | 1,420,536 | 1.39 | 0.00 | (20.17) | ||||||||||||||||||
2021 | 930,129 | 1.92 | 1,783,284 | 0.32 | 0.00 | 11.42 | ||||||||||||||||||
BHFTI SSGA Emerging Markets | 2025 | 286,854 | 20.53 | 5,890,339 | 0.91 | 0.00 | 30.73 | |||||||||||||||||
Enhanced Index | ||||||||||||||||||||||||
Investment Division | ||||||||||||||||||||||||
(Commenced 4/25/2025) | ||||||||||||||||||||||||
BHFTI SSGA Growth and | 2025 | 345,202 | 37.63 | 12,988,719 | 2.70 | 0.00 | 17.09 | |||||||||||||||||
Income ETF Investment | 2024 | 363,772 | 32.13 | 11,689,603 | 2.59 | 0.00 | 11.17 | |||||||||||||||||
Division | 2023 | 398,864 | 28.91 | 11,529,618 | 2.53 | 0.00 | 14.12 | |||||||||||||||||
2022 | 415,170 | 25.33 | 10,515,752 | 3.24 | 0.00 | (15.09) | ||||||||||||||||||
2021 | 448,662 | 29.83 | 13,383,146 | 2.01 | 0.00 | 13.61 | ||||||||||||||||||
BHFTI SSGA Growth ETF | 2025 | 512,446 | 42.49 | 21,776,117 | 2.23 | 0.00 | 19.53 | |||||||||||||||||
Investment Division | 2024 | 547,312 | 35.55 | 19,458,301 | 2.23 | 0.00 | 12.96 | |||||||||||||||||
2023 | 589,766 | 31.47 | 18,562,218 | 2.12 | 0.00 | 16.13 | ||||||||||||||||||
2022 | 609,233 | 27.10 | 16,512,324 | 3.02 | 0.00 | (15.67) | ||||||||||||||||||
2021 | 628,016 | 32.14 | 20,184,829 | 1.65 | 0.00 | 17.88 | ||||||||||||||||||
BHFTI T. Rowe Price Mid Cap | 2025 | 418,691 | 59.85 | 25,057,365 | — | 0.00 | 3.75 | |||||||||||||||||
Growth Investment Division | 2024 | 427,667 | 57.69 | 24,670,433 | 0.18 | 0.00 | 9.59 | |||||||||||||||||
2023 | 454,641 | 52.64 | 23,931,832 | — | 0.00 | 20.11 | ||||||||||||||||||
2022 | 487,481 | 43.83 | 21,364,266 | — | 0.00 | (22.33) | ||||||||||||||||||
2021 | 523,479 | 56.43 | 29,538,044 | — | 0.00 | 15.15 | ||||||||||||||||||
BHFTI Victory Sycamore Mid | 2025 | 112,718 | 110.30 | 12,432,540 | 1.42 | 0.00 | 2.51 | |||||||||||||||||
Cap Value Investment Division | 2024 | 121,927 | 107.60 | 13,119,195 | 1.42 | 0.00 | 10.10 | |||||||||||||||||
2023 | 127,987 | 97.72 | 12,507,473 | 1.65 | 0.00 | 10.20 | ||||||||||||||||||
2022 | 131,106 | 88.68 | 11,625,865 | 1.89 | 0.00 | (2.45) | ||||||||||||||||||
2021 | 139,119 | 90.90 | 12,646,607 | 1.27 | 0.00 | 32.13 | ||||||||||||||||||
BHFTII Baillie Gifford | 2025 | 110,059 | 41.05 | 4,517,647 | 0.69 | 0.00 | 19.31 | |||||||||||||||||
International Stock | 2024 | 118,237 | 34.40 | 4,067,805 | 0.83 | 0.00 | 4.62 | |||||||||||||||||
Investment Division | 2023 | 116,981 | 32.88 | 3,846,847 | 1.23 | 0.00 | 18.59 | |||||||||||||||||
2022 | 125,791 | 27.73 | 3,488,203 | 1.16 | 0.00 | (28.60) | ||||||||||||||||||
2021 | 120,383 | 38.84 | 4,675,532 | 0.93 | 0.00 | (0.76) | ||||||||||||||||||
65
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
As of December 31 | For the year ended December 31 | |||||||||||||||||||||
Units | Unit Value | Net | Investment1 | Expense2 | Total3 | |||||||||||||||||
BHFTII BlackRock Bond | 2025 | 53,129 | 128.55 | 6,829,702 | 5.39 | 0.00 | 7.95 | |||||||||||||||
Income Investment Division | 2024 | 55,941 | 119.09 | 6,661,822 | 4.11 | 0.00 | 1.51 | |||||||||||||||
2023 | 58,370 | 117.32 | 6,847,891 | 3.14 | 0.00 | 5.84 | ||||||||||||||||
2022 | 51,824 | 110.85 | 5,744,603 | 2.88 | 0.00 | (14.15) | ||||||||||||||||
2021 | 57,031 | 129.11 | 7,363,385 | 2.66 | 0.00 | (0.44) | ||||||||||||||||
BHFTII BlackRock Capital | 2025 | 70,117 | 289.35 | 20,288,167 | — | 0.00 | 13.19 | |||||||||||||||
Appreciation Investment | 2024 | 72,741 | 255.63 | 18,594,554 | 0.08 | 0.00 | 31.99 | |||||||||||||||
Division | 2023 | 78,958 | 193.67 | 15,291,743 | 0.04 | 0.00 | 49.61 | |||||||||||||||
2022 | 84,834 | 129.45 | 10,981,697 | — | 0.00 | (37.61) | ||||||||||||||||
2021 | 84,213 | 207.48 | 17,472,849 | — | 0.00 | 21.20 | ||||||||||||||||
BHFTII Brighthouse Asset | 2025 | 117,991 | 25.27 | 2,981,236 | 3.37 | 0.00 | 9.47 | |||||||||||||||
Allocation 20 Investment | 2024 | 142,286 | 23.08 | 3,284,125 | 2.91 | 0.00 | 4.21 | |||||||||||||||
Division | 2023 | 115,005 | 22.15 | 2,547,223 | 3.38 | 0.00 | 8.08 | |||||||||||||||
2022 | 90,770 | 20.49 | 1,860,227 | 3.40 | 0.00 | (12.54) | ||||||||||||||||
2021 | 96,149 | 23.43 | 2,253,071 | 3.46 | 0.00 | 4.01 | ||||||||||||||||
BHFTII Brighthouse Asset | 2025 | 214,064 | 31.29 | 6,698,777 | 2.89 | 0.00 | 11.75 | |||||||||||||||
Allocation 40 Investment | 2024 | 233,362 | 28.00 | 6,534,961 | 2.55 | 0.00 | 6.13 | |||||||||||||||
Division | 2023 | 248,476 | 26.39 | 6,556,170 | 3.68 | 0.00 | 10.82 | |||||||||||||||
2022 | 248,206 | 23.81 | 5,909,882 | 2.88 | 0.00 | (13.63) | ||||||||||||||||
2021 | 277,449 | 27.57 | 7,648,871 | 2.90 | 0.00 | 7.68 | ||||||||||||||||
BHFTII Brighthouse Asset | 2025 | 1,631,145 | 38.25 | 62,397,429 | 2.43 | 0.00 | 13.96 | |||||||||||||||
Allocation 60 Investment | 2024 | 1,653,170 | 33.57 | 55,491,623 | 2.06 | 0.00 | 8.28 | |||||||||||||||
Division | 2023 | 1,716,632 | 31.00 | 53,213,162 | 3.34 | 0.00 | 13.93 | |||||||||||||||
2022 | 1,775,296 | 27.21 | 48,302,880 | 2.41 | 0.00 | (15.17) | ||||||||||||||||
2021 | 1,854,789 | 32.08 | 59,493,102 | 2.29 | 0.00 | 11.17 | ||||||||||||||||
BHFTII Brighthouse Asset | 2025 | 2,986,227 | 45.81 | 136,787,563 | 1.90 | 0.00 | 15.91 | |||||||||||||||
Allocation 80 Investment | 2024 | 3,148,095 | 39.52 | 124,403,687 | 1.59 | 0.00 | 11.09 | |||||||||||||||
Division | 2023 | 3,355,428 | 35.57 | 119,360,295 | 3.26 | 0.00 | 17.51 | |||||||||||||||
2022 | 3,492,659 | 30.27 | 105,733,249 | 2.08 | 0.00 | (17.71) | ||||||||||||||||
2021 | 3,591,937 | 36.79 | 132,139,669 | 1.86 | 0.00 | 14.87 | ||||||||||||||||
BHFTII Brighthouse/Artisan | 2025 | 47,112 | 135.81 | 6,398,121 | 1.33 | 0.00 | 1.82 | |||||||||||||||
Mid Cap Value Investment | 2024 | 52,153 | 133.38 | 6,955,974 | 1.21 | 0.00 | 4.97 | |||||||||||||||
Division | 2023 | 53,687 | 127.06 | 6,821,287 | 0.83 | 0.00 | 18.53 | |||||||||||||||
2022 | 57,442 | 107.19 | 6,157,384 | 1.00 | 0.00 | (12.62) | ||||||||||||||||
2021 | 57,760 | 122.68 | 7,085,757 | 1.06 | 0.00 | 26.91 | ||||||||||||||||
BHFTII Brighthouse/Wellington | 2025 | 20,852 | 236.96 | 4,941,001 | 2.22 | 0.00 | 12.67 | |||||||||||||||
Balanced Investment Division | 2024 | 21,739 | 210.31 | 4,571,941 | 1.84 | 0.00 | 13.86 | |||||||||||||||
2023 | 23,270 | 184.71 | 4,298,270 | 2.14 | 0.00 | 18.10 | ||||||||||||||||
2022 | 24,491 | 156.40 | 3,830,455 | 1.78 | 0.00 | (17.08) | ||||||||||||||||
2021 | 26,170 | 188.61 | 4,935,989 | 1.82 | 0.00 | 14.02 | ||||||||||||||||
BHFTII Brighthouse/Wellington | 2025 | 115,212 | 195.64 | 22,540,075 | 1.41 | 0.00 | 7.83 | |||||||||||||||
Core Equity Opportunities | 2024 | 119,292 | 181.43 | 21,642,901 | 1.42 | 0.00 | 8.61 | |||||||||||||||
Investment Division | 2023 | 125,624 | 167.04 | 20,984,011 | 1.43 | 0.00 | 7.66 | |||||||||||||||
2022 | 131,382 | 155.16 | 20,384,704 | 1.46 | 0.00 | (5.08) | ||||||||||||||||
2021 | 138,104 | 163.46 | 22,574,515 | 1.38 | 0.00 | 24.43 | ||||||||||||||||
66
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
As of December 31 | For the year ended December 31 | |||||||||||||||||||||
Units | Unit Value | Net | Investment1 | Expense2 | Total3 | |||||||||||||||||
BHFTII Frontier Mid Cap | 2025 | 29,013 | 280.90 | 8,149,900 | — | 0.00 | 5.16 | |||||||||||||||
Growth Investment Division | 2024 | 30,392 | 267.12 | 8,118,291 | 0.24 | 0.00 | 17.77 | |||||||||||||||
2023 | 32,452 | 226.81 | 7,360,474 | — | 0.00 | 18.00 | ||||||||||||||||
2022 | 32,528 | 192.22 | 6,252,484 | — | 0.00 | (28.15) | ||||||||||||||||
2021 | 32,321 | 267.51 | 8,646,325 | — | 0.00 | 14.68 | ||||||||||||||||
BHFTII Jennison Growth | 2025 | 174,514 | 128.41 | 22,409,685 | — | 0.00 | 14.04 | |||||||||||||||
Investment Division | 2024 | 192,296 | 112.61 | 21,653,857 | — | 0.00 | 30.28 | |||||||||||||||
2023 | 189,659 | 86.44 | 16,393,443 | — | 0.00 | 53.26 | ||||||||||||||||
2022 | 193,276 | 56.40 | 10,900,366 | — | 0.00 | (38.87) | ||||||||||||||||
2021 | 196,531 | 92.26 | 18,131,646 | — | 0.00 | 17.17 | ||||||||||||||||
BHFTII Loomis Sayles Small | 2025 | 45,027 | 191.49 | 8,622,306 | 0.20 | 0.00 | 5.29 | |||||||||||||||
Cap Core Investment Division | 2024 | 46,118 | 181.87 | 8,387,601 | 0.14 | 0.00 | 11.74 | |||||||||||||||
2023 | 50,224 | 162.76 | 8,174,437 | 0.19 | 0.00 | 17.46 | ||||||||||||||||
2022 | 51,764 | 138.56 | 7,172,418 | — | 0.00 | (15.06) | ||||||||||||||||
2021 | 50,290 | 163.13 | 8,203,948 | 0.08 | 0.00 | 21.95 | ||||||||||||||||
BHFTII Loomis Sayles Small | 2025 | 96,734 | 57.64 | 5,575,792 | — | 0.00 | 4.03 | |||||||||||||||
Cap Growth Investment | 2024 | 108,138 | 55.41 | 5,991,549 | — | 0.00 | 14.88 | |||||||||||||||
Division | 2023 | 109,229 | 48.23 | 5,268,026 | — | 0.00 | 11.91 | |||||||||||||||
2022 | 108,734 | 43.10 | 4,686,155 | — | 0.00 | (22.96) | ||||||||||||||||
2021 | 106,623 | 55.94 | 5,964,690 | — | 0.00 | 10.00 | ||||||||||||||||
BHFTII MetLife Aggregate | 2025 | 1,232,986 | 26.31 | 32,440,968 | 1.96 | 0.00 | 7.04 | |||||||||||||||
Bond Index Investment | 2024 | 1,195,484 | 24.58 | 29,385,539 | 3.09 | 0.00 | 0.89 | |||||||||||||||
Division | 2023 | 1,121,766 | 24.36 | 27,331,131 | 2.88 | 0.00 | 5.20 | |||||||||||||||
2022 | 1,031,025 | 23.16 | 23,879,515 | 2.88 | 0.00 | (13.09) | ||||||||||||||||
2021 | 1,141,609 | 26.65 | 30,424,047 | 2.52 | 0.00 | (1.93) | ||||||||||||||||
BHFTII MetLife Mid Cap | 2025 | 332,421 | 91.72 | 30,490,281 | 1.12 | 0.00 | 7.19 | |||||||||||||||
Stock Index Investment | 2024 | 335,077 | 85.57 | 28,672,335 | 1.31 | 0.00 | 13.59 | |||||||||||||||
Division | 2023 | 357,868 | 75.33 | 26,957,842 | 1.31 | 0.00 | 16.08 | |||||||||||||||
2022 | 362,246 | 64.89 | 23,506,942 | 1.11 | 0.00 | (13.26) | ||||||||||||||||
2021 | 376,616 | 74.81 | 28,174,174 | 1.06 | 0.00 | 24.40 | ||||||||||||||||
BHFTII MetLife MSCI EAFE® | 2025 | 973,485 | 40.11 | 39,048,878 | 1.85 | 0.00 | 31.02 | |||||||||||||||
Index Investment Division | 2024 | 1,092,739 | 30.61 | 33,453,643 | 3.18 | 0.00 | 3.32 | |||||||||||||||
2023 | 1,082,221 | 29.63 | 32,067,342 | 2.51 | 0.00 | 17.93 | ||||||||||||||||
2022 | 1,174,710 | 25.13 | 29,515,993 | 3.70 | 0.00 | (14.47) | ||||||||||||||||
2021 | 1,133,671 | 29.38 | 33,305,152 | 1.79 | 0.00 | 10.72 | ||||||||||||||||
BHFTII MetLife Russell 2000® | 2025 | 287,360 | 85.87 | 24,675,187 | 1.15 | 0.00 | 12.66 | |||||||||||||||
Index Investment Division | 2024 | 294,932 | 76.22 | 22,480,270 | 1.44 | 0.00 | 11.29 | |||||||||||||||
2023 | 311,674 | 68.49 | 21,346,825 | 1.33 | 0.00 | 16.80 | ||||||||||||||||
2022 | 302,334 | 58.64 | 17,728,569 | 1.06 | 0.00 | (20.23) | ||||||||||||||||
2021 | 307,440 | 73.51 | 22,599,979 | 0.98 | 0.00 | 14.52 | ||||||||||||||||
BHFTII MetLife Stock Index | 2025 | 301,284 | 381.17 | 114,841,691 | 1.00 | 0.00 | 17.59 | |||||||||||||||
Investment Division | 2024 | 317,979 | 324.17 | 103,078,670 | 1.22 | 0.00 | 24.67 | |||||||||||||||
2023 | 349,888 | 260.01 | 90,974,627 | 1.40 | 0.00 | 25.94 | ||||||||||||||||
2022 | 363,685 | 206.46 | 75,085,567 | 1.27 | 0.00 | (18.30) | ||||||||||||||||
2021 | 366,835 | 252.69 | 92,696,704 | 1.50 | 0.00 | 28.36 | ||||||||||||||||
67
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Continued)
As of December 31 | For the year ended December 31 | |||||||||||||||||||||
Units | Unit Value | Net | Investment1 | Expense2 | Total3 | |||||||||||||||||
BHFTII MFS® Total Return | 2025 | 26,850 | 204.35 | 5,486,697 | 2.78 | 0.00 | 11.11 | |||||||||||||||
Investment Division | 2024 | 28,262 | 183.91 | 5,197,563 | 2.61 | 0.00 | 7.78 | |||||||||||||||
2023 | 31,266 | 170.63 | 5,335,055 | 2.26 | 0.00 | 10.40 | ||||||||||||||||
2022 | 31,669 | 154.55 | 4,894,487 | 1.81 | 0.00 | (9.63) | ||||||||||||||||
2021 | 32,705 | 171.03 | 5,593,470 | 1.84 | 0.00 | 14.22 | ||||||||||||||||
BHFTII MFS® Value | 2025 | 557,080 | 68.23 | 38,008,301 | 1.80 | 0.00 | 13.29 | |||||||||||||||
Investment Division | 2024 | 589,985 | 60.22 | 35,531,204 | 1.81 | 0.00 | 11.91 | |||||||||||||||
2023 | 609,918 | 53.81 | 32,821,469 | 1.87 | 0.00 | 8.15 | ||||||||||||||||
2022 | 626,447 | 49.76 | 31,170,517 | 1.73 | 0.00 | (5.98) | ||||||||||||||||
2021 | 658,666 | 52.92 | 34,857,079 | 1.54 | 0.00 | 25.54 | ||||||||||||||||
BHFTII Neuberger Berman | 2025 | 94,042 | 75.24 | 7,075,420 | 0.10 | 0.00 | (4.57) | |||||||||||||||
Genesis Investment Division | 2024 | 104,156 | 78.84 | 8,211,553 | 0.14 | 0.00 | 9.10 | |||||||||||||||
2023 | 107,154 | 72.27 | 7,743,525 | 0.13 | 0.00 | 15.53 | ||||||||||||||||
2022 | 109,712 | 62.55 | 6,862,801 | — | 0.00 | (19.15) | ||||||||||||||||
2021 | 111,698 | 77.37 | 8,642,166 | 0.07 | 0.00 | 18.41 | ||||||||||||||||
BHFTII T. Rowe Price Large | 2025 | 317,136 | 130.35 | 41,339,559 | — | 0.00 | 15.70 | |||||||||||||||
Cap Growth Investment | 2024 | 339,391 | 112.66 | 38,236,884 | — | 0.00 | 30.31 | |||||||||||||||
Division | 2023 | 367,179 | 86.46 | 31,745,974 | — | 0.00 | 46.81 | |||||||||||||||
2022 | 397,474 | 58.89 | 23,408,202 | — | 0.00 | (40.46) | ||||||||||||||||
2021 | 390,542 | 98.92 | 38,631,828 | — | 0.00 | 20.22 | ||||||||||||||||
BHFTII T. Rowe Price Small | 2025 | 178,431 | 119.29 | 21,285,383 | 0.25 | 0.00 | 10.30 | |||||||||||||||
Cap Growth Investment | 2024 | 187,071 | 108.16 | 20,232,803 | 0.05 | 0.00 | 13.47 | |||||||||||||||
Division | 2023 | 197,649 | 95.32 | 18,838,955 | 0.05 | 0.00 | 21.57 | |||||||||||||||
2022 | 194,417 | 78.41 | 15,243,456 | 0.21 | 0.00 | (22.15) | ||||||||||||||||
2021 | 198,671 | 100.72 | 20,009,977 | 0.03 | 0.00 | 11.67 | ||||||||||||||||
BHFTII VanEck Global | 2025 | 19,373 | 236.76 | 4,586,736 | 3.06 | 0.00 | 36.78 | |||||||||||||||
Natural Resources Investment | 2024 | 22,887 | 173.09 | 3,961,534 | 2.70 | 0.00 | (2.33) | |||||||||||||||
Division | 2023 | 20,999 | 177.21 | 3,721,341 | 3.06 | 0.00 | (3.49) | |||||||||||||||
2022 | 22,513 | 183.62 | 4,133,873 | 2.70 | 0.00 | 8.24 | ||||||||||||||||
2021 | 24,140 | 169.65 | 4,095,336 | 1.22 | 0.00 | 18.82 | ||||||||||||||||
BHFTII Western Asset | 2025 | 236,891 | 61.13 | 14,480,609 | 7.60 | 0.00 | 9.07 | |||||||||||||||
Management Strategic Bond | 2024 | 254,097 | 56.04 | 14,240,229 | 7.43 | 0.00 | 4.88 | |||||||||||||||
Opportunities Investment | 2023 | 258,610 | 53.43 | 13,818,536 | 6.54 | 0.00 | 9.44 | |||||||||||||||
Division | 2022 | 248,661 | 48.83 | 12,141,227 | 6.03 | 0.00 | (16.66) | |||||||||||||||
2021 | 258,261 | 58.58 | 15,130,133 | 3.71 | 0.00 | 2.82 | ||||||||||||||||
BHFTII Western Asset | 2025 | 101,512 | 30.38 | 3,083,755 | 3.69 | 0.00 | 7.07 | |||||||||||||||
Management U.S. Government | 2024 | 96,610 | 28.37 | 2,741,064 | 2.90 | 0.00 | 2.34 | |||||||||||||||
Investment Division | 2023 | 120,384 | 27.72 | 3,337,542 | 2.39 | 0.00 | 4.87 | |||||||||||||||
2022 | 94,679 | 26.44 | 2,503,055 | 2.35 | 0.00 | (9.01) | ||||||||||||||||
2021 | 104,008 | 29.05 | 3,021,910 | 2.87 | 0.00 | (1.52) | ||||||||||||||||
FTVIPT Franklin Income VIP | 2025 | 7,801 | 167.48 | 1,306,438 | 5.02 | 0.00 | 12.56 | |||||||||||||||
Investment Division | 2024 | 7,641 | 148.79 | 1,136,947 | 5.20 | 0.00 | 7.20 | |||||||||||||||
2023 | 7,301 | 138.79 | 1,013,310 | 5.14 | 0.00 | 8.62 | ||||||||||||||||
2022 | 9,226 | 127.78 | 1,178,900 | 4.11 | 0.00 | (5.47) | ||||||||||||||||
2021 | 6,115 | 135.18 | 826,638 | 4.59 | 0.00 | 16.75 | ||||||||||||||||
68
BRIGHTHOUSE VARIABLE LIFE ACCOUNT A
OF BRIGHTHOUSE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS — (Concluded)
As of December 31 | For the year ended December 31 | |||||||||||||||||||||
Units | Unit Value | Net | Investment1 | Expense2 | Total3 | |||||||||||||||||
FTVIPT Franklin Mutual | 2025 | 24,133 | 76.14 | 1,837,578 | 2.04 | 0.00 | 11.52 | |||||||||||||||
Shares VIP Investment | 2024 | 24,908 | 68.28 | 1,700,724 | 2.03 | 0.00 | 11.27 | |||||||||||||||
Division | 2023 | 24,588 | 61.36 | 1,508,768 | 1.72 | 0.00 | 13.46 | |||||||||||||||
2022 | 30,966 | 54.08 | 1,674,680 | 1.84 | 0.00 | (7.43) | ||||||||||||||||
2021 | 27,734 | 58.42 | 1,620,315 | 3.35 | 0.00 | 19.17 | ||||||||||||||||
69
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Index to Consolidated Financial Statements, Notes and Schedules
Page | |||
Financial Statements at December 31, 2025 and 2024 and for the Years Ended December 31, 2025, 2024 | |||
Notes to the Consolidated Financial Statements | |||
Note 1 — Business, Basis of Presentation and Summary of Significant Accounting Policies | |||
Note 6 — Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles | |||
Financial Statement Schedules at December 31, 2025 and 2024 and for the Years Ended December 31, | |||
Schedule I — Consolidated Summary of Investments — Other Than Investments in Related Parties | |||
Schedule II — Condensed Financial Information (Parent Company Only) | |||
Schedule III — Consolidated Supplementary Insurance Information | |||
1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the stockholders and the Board of Directors of Brighthouse Life Insurance Company
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Brighthouse Life Insurance Company and subsidiaries (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), equity, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and the schedules listed in the Index to Consolidated Financial Statements, Notes and Schedules (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Certain Assumptions Used in the Valuation of Liability for Future Policy Benefits — Refer to Notes 1 and 3 to the financial statements
Critical Audit Matter Description
The Company has obligations under insurance contracts to pay benefits over an extended period of time. The Company establishes a liability for future policy benefits (“LFPB”) for nonparticipating traditional and limited-payment contracts and the additional insurance liabilities for universal life-type contracts with secondary guarantees.
2
Management regularly reviews its cash flow assumptions supporting the estimates of these actuarial liabilities and, if such assumptions change significantly, the associated liability is adjusted. The measurement of LFPBs can be significantly impacted by changes in economic assumptions related to market interest rates and the general account rate of return and changes in assumptions for policyholder behavior including premium persistency, mortality, lapses and withdrawals.
Given the future policy benefit obligation for certain contracts is sensitive to changes in these economic and policyholder behavior assumptions and the significant uncertainty inherent in estimating these actuarial liabilities, we identified management’s evaluation of these assumptions in the valuation of certain LFPBs as a critical audit matter. This required a high degree of auditor judgment and an increased extent of effort, including the involvement of our actuarial specialists.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to these assumptions in the valuation of certain LFPBs included the following, among others:
Certain Assumptions Used in the Valuation of Market Risk Benefits — Refer to Notes 1, 4, and 10 to the financial statements
Critical Audit Matter Description
Market risk benefits are measured at fair value and separately presented on the consolidated balance sheet. The Company estimates market risk benefit assets and liabilities using significant judgment including discount rate assumptions, nonperformance risk, and actuarially determined assumptions including policyholder behavior, mortality and risk margins.
Given the sensitivity of certain market risk benefits to changes in these assumptions and the significant uncertainty inherent in estimating the market risk benefits, we identified management’s evaluation of these assumptions in the valuation of certain market risk benefits as a critical audit matter. This required a high degree of auditor judgment and an increased extent of effort, including the involvement of our actuarial and fair value specialists.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to these assumptions in the valuation of certain market risk benefits included the following, among others:
3
/s/ DELOITTE & TOUCHE LLP
Charlotte, North Carolina
February 27, 2026
We have served as the Company’s auditor since 2005.
4
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Consolidated Balance Sheets
December 31, 2025 and 2024
(In millions, except share and per share data)
2025 | 2024 |
Assets |
Investments: | ||||||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $85,907 and $86,565, respectively; | $ | 80,960 | $ | 79,129 | ||
Trading securities, at estimated fair value | 506 | — | ||||
Equity securities, at estimated fair value | 23 | 32 | ||||
Mortgage loans (net of allowance for credit losses of $200 and $178, respectively) | 22,726 | 23,254 | ||||
Policy loans | 1,047 | 1,626 | ||||
Limited partnerships and limited liability companies | 4,696 | 4,827 | ||||
Short-term investments, principally at estimated fair value | 668 | 1,157 | ||||
Other invested assets, principally at estimated fair value (net of allowance for credit losses of $0 and $0, respectively) | 7,932 | 5,244 | ||||
Total investments | 118,558 | 115,269 | ||||
Cash and cash equivalents | 5,057 | 4,592 | ||||
Accrued investment income | 1,242 | 1,261 | ||||
Premiums, reinsurance and other receivables (net of allowance for credit losses of $3 and $3, respectively) | 21,238 | 20,809 | ||||
Deferred policy acquisition costs and value of business acquired | 4,276 | 4,374 | ||||
Current income tax recoverable | 62 | 51 | ||||
Deferred income tax asset | 1,389 | 1,823 | ||||
Market risk benefit assets | 1,060 | 1,092 | ||||
Other assets | 279 | 314 | ||||
Separate account assets | 78,825 | 79,006 | ||||
Total assets | $ | 231,986 | $ | 228,591 | ||
Liabilities and Equity |
Liabilities |
Future policy benefits | $ | 31,682 | $ | 31,085 | ||
Policyholder account balances | 87,174 | 87,162 | ||||
Market risk benefit liabilities | 8,079 | 8,346 | ||||
Other policy-related balances | 3,715 | 3,677 | ||||
Payables for collateral under securities loaned and other transactions | 4,696 | 3,874 | ||||
Long-term debt | 832 | 833 | ||||
Other liabilities | 8,885 | 8,460 | ||||
Separate account liabilities | 78,825 | 79,006 | ||||
Total liabilities | 223,888 | 222,443 | ||||
Contingencies, Commitments and Guarantees (Note 15) |
Equity |
Brighthouse Life Insurance Company’s stockholder’s equity: | |||||||
Common stock, par value $25,000 per share; 4,000 shares authorized; 3,000 shares issued and outstanding | 75 | 75 | |||||
Additional paid-in capital | 17,607 | 17,507 | |||||
Retained earnings (deficit) | (5,997 | ) | (6,286 | ) | |||
Accumulated other comprehensive income (loss) | (3,602 | ) | (5,163 | ) | |||
Total Brighthouse Life Insurance Company’s stockholder’s equity | 8,083 | 6,133 | |||||
Noncontrolling interests | 15 | 15 | |||||
Total equity | 8,098 | 6,148 | |||||
Total liabilities and equity | $ | 231,986 | $ | 228,591 | |||
See accompanying notes to the consolidated financial statements.
5
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Consolidated Statements of Operations
For the Years Ended December 31, 2025, 2024 and 2023
(In millions)
2025 | 2024 | 2023 |
Revenues |
Premiums | $ | 682 | $ | 759 | $ | 811 | ||||
Universal life and investment-type product policy fees | 1,678 | 1,601 | 1,778 | |||||||
Net investment income | 5,139 | 5,100 | 4,560 | |||||||
Other revenues | 478 | 499 | 418 | |||||||
Net investment gains (losses) | (102 | ) | (298 | ) | (242 | ) | ||||
Net derivative gains (losses) | (1,789 | ) | (3,688 | ) | (3,920 | ) | ||||
Total revenues | 6,086 | 3,973 | 3,405 | |||||||
Expenses |
Policyholder benefits and claims (including liability remeasurement gains (losses) of ($273), | 1,750 | 2,139 | 2,418 | |||||||
Interest credited to policyholder account balances | 2,161 | 2,110 | 1,801 | |||||||
Amortization of deferred policy acquisition costs and value of business acquired | 564 | 550 | 564 | |||||||
Change in market risk benefits | (261 | ) | (2,669 | ) | (1,497 | ) | ||||
Other expenses | 1,609 | 1,601 | 1,625 | |||||||
Total expenses | 5,823 | 3,731 | 4,911 | |||||||
Income (loss) before provision for income tax | 263 | 242 | (1,506 | ) | ||||||
Provision for income tax expense (benefit) | (27 | ) | (15 | ) | (383 | ) | ||||
Net income (loss) | 290 | 257 | (1,123 | ) | ||||||
Less: Net income (loss) attributable to noncontrolling interests | 1 | 1 | 1 | |||||||
Net income (loss) attributable to Brighthouse Life Insurance Company | $ | 289 | $ | 256 | $ | (1,124 | ) | |||
See accompanying notes to the consolidated financial statements.
6
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Consolidated Statements of Comprehensive Income (Loss)
For the Years Ended December 31, 2025, 2024 and 2023
(In millions)
2025 | 2024 | 2023 |
Net income (loss) | $ | 290 | $ | 257 | $ | (1,123 | ) | ||||
Other comprehensive income (loss): | |||||||||||
Unrealized investment gains (losses), net of related offsets | 2,065 | (1,053 | ) | 2,313 | |||||||
Unrealized gains (losses) on derivatives | (241 | ) | 116 | (284 | ) | ||||||
Changes in instrument-specific credit risk on market risk benefits | 440 | 352 | (637 | ) | |||||||
Changes in discount rates on the liability for future policy benefits | (330 | ) | 541 | (376 | ) | ||||||
Foreign currency translation adjustments | 43 | (18 | ) | 18 | |||||||
Other comprehensive income (loss), before income tax | 1,977 | (62 | ) | 1,034 | |||||||
Income tax (expense) benefit related to items of other comprehensive income (loss) | (416 | ) | 13 | (217 | ) | ||||||
Other comprehensive income (loss), net of income tax | 1,561 | (49 | ) | 817 | |||||||
Comprehensive income (loss) | 1,851 | 208 | (306 | ) | |||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of income tax | 1 | 1 | 1 | ||||||||
Comprehensive income (loss) attributable to Brighthouse Life Insurance Company | $ | 1,850 | $ | 207 | $ | (307 | ) | ||||
See accompanying notes to the consolidated financial statements.
7
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Consolidated Statements of Equity
For the Years Ended December 31, 2025, 2024 and 2023
(In millions)
Common | Additional | Retained | Accumulated | Brighthouse Life | Noncontrolling | Total | |||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | 75 | $ | 17,773 | $ | (5,418 | ) | $ | (5,931 | ) | $ | 6,499 | $ | 15 | $ | 6,514 | |||||||||||||||||||
Dividends paid to parent | (266 | ) | (266 | ) | (266 | ) | |||||||||||||||||||||||||||||
Change in noncontrolling interests | — | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||
Net income (loss) | (1,124 | ) | (1,124 | ) | 1 | (1,123 | ) | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of | 817 | 817 | 817 | ||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | 75 | 17,507 | (6,542 | ) | (5,114 | ) | 5,926 | 15 | 5,941 | ||||||||||||||||||||||||||
Change in noncontrolling interests | — | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||
Net income (loss) | 256 | 256 | 1 | 257 | |||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of | (49 | ) | (49 | ) | (49 | ) | |||||||||||||||||||||||||||||
Balance at December 31, 2024 | 75 | 17,507 | (6,286 | ) | (5,163 | ) | 6,133 | 15 | 6,148 | ||||||||||||||||||||||||||
Capital contribution | 100 | 100 | 100 | ||||||||||||||||||||||||||||||||
Change in noncontrolling interests | — | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||
Net income (loss) | 289 | 289 | 1 | 290 | |||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of | 1,561 | 1,561 | 1,561 | ||||||||||||||||||||||||||||||||
Balance at December 31, 2025 | $ | 75 | $ | 17,607 | $ | (5,997 | ) | $ | (3,602 | ) | $ | 8,083 | $ | 15 | $ | 8,098 | |||||||||||||||||||
See accompanying notes to the consolidated financial statements.
8
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2025, 2024 and 2023
(In millions)
2025 | 2024 | 2023 |
Cash flows from operating activities |
Net income (loss) | $ | 290 | $ | 257 | $ | (1,123 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Amortization of premiums and accretion of discounts associated with investments, net | (304 | ) | (301 | ) | (258 | ) | |||||
(Gains) losses on investments, net | 56 | 267 | 227 | ||||||||
(Gains) losses on derivatives, net | (1,360 | ) | 1,456 | 2,632 | |||||||
(Income) loss from equity method investments, net of dividends and distributions | (25 | ) | 41 | 76 | |||||||
Interest credited to policyholder account balances | 2,161 | 2,110 | 1,801 | ||||||||
Universal life and investment-type product policy fees | (1,678 | ) | (1,601 | ) | (1,778 | ) | |||||
Change in market risk benefits, net | 203 | (2,089 | ) | (888 | ) | ||||||
Change in accrued investment income | 145 | (117 | ) | (212 | ) | ||||||
Change in premiums, reinsurance and other receivables | (403 | ) | (1,482 | ) | (1,279 | ) | |||||
Change in deferred policy acquisition costs and value of business acquired, net | 98 | 113 | 155 | ||||||||
Change in income tax | 18 | (8 | ) | (380 | ) | ||||||
Change in other assets | 1,094 | 1,116 | 1,100 | ||||||||
Change in future policy benefits and other policy-related balances | (215 | ) | (316 | ) | (62 | ) | |||||
Change in other liabilities | 402 | 377 | (18 | ) | |||||||
Net cash provided by (used in) operating activities | 482 | (177 | ) | (7 | ) | ||||||
Cash flows from investing activities |
Sales, maturities and repayments of: | ||||||||||
Fixed maturity securities | 12,445 | 11,559 | 5,922 | |||||||
Trading securities | 44 | — | — | |||||||
Equity securities | 26 | 46 | 30 | |||||||
Mortgage loans | 2,541 | 1,518 | 1,206 | |||||||
Limited partnerships and limited liability companies | 570 | 337 | 205 | |||||||
Purchases of: | ||||||||||
Fixed maturity securities | (11,973 | ) | (11,811 | ) | (8,699 | ) | ||||
Trading securities | (199 | ) | — | — | ||||||
Equity securities | (2 | ) | (3 | ) | (4 | ) | ||||
Mortgage loans | (2,163 | ) | (2,374 | ) | (813 | ) | ||||
Limited partnerships and limited liability companies | (278 | ) | (299 | ) | (453 | ) | ||||
Cash received in connection with freestanding derivatives | 16,795 | 12,453 | 5,048 | |||||||
Cash paid in connection with freestanding derivatives | (18,258 | ) | (11,856 | ) | (5,422 | ) | ||||
Receipts on loans to affiliate | — | — | 125 | |||||||
Net change in policy loans | 578 | (688 | ) | (40 | ) | |||||
Net change in short-term investments | 513 | (572 | ) | (259 | ) | |||||
Net change in other invested assets | 21 | (369 | ) | (109 | ) | |||||
Net cash provided by (used in) investing activities | $ | 660 | $ | (2,059 | ) | $ | (3,263 | ) | ||
See accompanying notes to the consolidated financial statements.
9
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Consolidated Statements of Cash Flows (continued)
For the Years Ended December 31, 2025, 2024 and 2023
(In millions)
2025 | 2024 | 2023 |
Cash flows from financing activities |
Policyholder account balances: | ||||||||||
Deposits | $ | 19,746 | $ | 29,950 | $ | 21,514 | ||||
Withdrawals | (20,899 | ) | (26,287 | ) | (17,641 | ) | ||||
Net change in payables for collateral under securities loaned and other transactions | 822 | 214 | (887 | ) | ||||||
Long-term and short-term debt repaid | (2 | ) | (2 | ) | (127 | ) | ||||
Dividends paid to parent | — | — | (266 | ) | ||||||
Capital contribution | 100 | — | — | |||||||
Financing element on certain derivative instruments and other derivative related transactions, net | (443 | ) | (211 | ) | 91 | |||||
Other, net | (1 | ) | (1 | ) | (1 | ) | ||||
Net cash provided by (used in) financing activities | (677 | ) | 3,663 | 2,683 | ||||||
Change in cash, cash equivalents and restricted cash | 465 | 1,427 | (587 | ) | ||||||
Cash, cash equivalents and restricted cash, beginning of year | 4,592 | 3,165 | 3,752 | |||||||
Cash, cash equivalents and restricted cash, end of year | $ | 5,057 | $ | 4,592 | $ | 3,165 | ||||
Supplemental disclosures of cash flow information |
Net cash paid (received) for: | |||||||||
Interest | $ | 67 | $ | 67 | $ | 71 | |||
Income tax | $ | (35 | ) | $ | — | $ | — | ||
Non-cash transactions: | |||||||||
Transfer of mortgage loans to affiliates | $ | 43 | $ | — | $ | — | |||
Transfer of limited partnerships and limited liability companies from affiliates | $ | 43 | $ | — | $ | — | |||
See accompanying notes to the consolidated financial statements.
10
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements
Business
“BLIC” and the “Company” refer to Brighthouse Life Insurance Company, a Delaware corporation originally incorporated in Connecticut in 1863, and its subsidiaries. Brighthouse Life Insurance Company is a wholly-owned subsidiary of Brighthouse Holdings, LLC (“BH Holdings”) and an indirect wholly-owned subsidiary of Brighthouse Financial, Inc. (“BHF” and, together with its subsidiaries, “Brighthouse Financial”).
BLIC offers a range of annuity and life insurance products to individuals. The Company is organized into the following reportable segments: Annuities; Life; Run-off; and Corporate & Other.
On November 6, 2025, BHF entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Aquarian Holdings VI L.P., a Delaware limited partnership (“Aquarian Parent”), Aquarian Beacon Merger Sub Inc., a Delaware corporation and an indirect wholly-owned subsidiary of Aquarian Parent (“Merger Sub”), and Aquarian Holdings LLC, a Delaware limited liability company, solely for the purpose of certain provisions, pursuant to which, at the closing of the transactions contemplated by the Merger Agreement, Merger Sub will merge with and into BHF, with BHF surviving as a wholly-owned subsidiary of Aquarian Parent (the “Merger”).
Basis of Presentation
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates.
Consolidation
The accompanying consolidated financial statements include the accounts of Brighthouse Life Insurance Company and its subsidiaries, as well as partnerships and limited liability companies (“LLC”) that the Company controls. Intercompany accounts and transactions have been eliminated.
The Company uses the equity method of accounting for investments in limited partnerships and LLCs when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. When the Company has virtually no influence over the investee’s operations, the investment is carried at fair value.
Summary of Significant Accounting Policies
Insurance Contract Obligations
The Company has obligations under insurance contracts to pay benefits over an extended period of time. The Company establishes liabilities for future obligations under long-duration insurance contracts based on the accounting model appropriate for each type of contract or contract feature. Liabilities for insurance contract benefits are generally accrued over time as revenue is recognized, or established based on the balance that accrues to the contract holder. In addition, certain insurance contracts may contain features that are required to be measured at fair value separately from the base contracts, either as a market risk benefit (“MRB”) or embedded derivative.
The discussion below provides an overview of the different accounting models for insurance contract obligations and the applicability of such models to the Company’s insurance products.
11
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)
Liability for Future Policy Benefits
The Company establishes a liability for future policy benefits (“LFPB”) for non-participating term and whole life insurance and income annuities. LFPBs are accrued over time as revenue is recognized based on a net premium ratio. The net premium ratio is the portion of gross premiums required to provide for all future benefits. LFPBs are established using the Company’s current assumptions of future cash flows, discounted at a rate that approximates a single A corporate bond curve. The Company generally aggregates insurance contracts into groupings by issue year, product and segment for determining the net premium ratio and related LFPBs.
The Company reviews cash flow assumptions regularly, and if they change significantly, LFPBs are adjusted by determining a revised net premium ratio. The revised net premium ratio is calculated as of contract inception using both actual historical experience and updated future cash flow assumptions. The recalculated net premium ratio is applied to derive a remeasurement gain or loss recognized in the current period net income. For insurance policies in-force as of December 31, 2020, January 1, 2021 is considered the contract inception date. The net premium ratio is also updated quarterly for the difference between actual and expected experience.
The net premium ratio is not updated for changes in discount rate assumptions, as changes in the discount rate are updated quarterly and the impacts are reflected in other comprehensive income (loss) (“OCI”). The discount rate assumption is determined by developing a yield curve based on market observable yields for upper-medium grade fixed income instruments derived from an external index. The yield curve is applied to the expected future cash flows used in the measurement of LFPBs based on the duration characteristics of those liabilities.
The most significant cash flow assumptions used in the establishment of LFPBs are mortality, policy lapses and market interest rates. See Note 3 for more information on the effect of changes in assumptions on the measurement of LFPBs.
The Company also establishes an LFPB for participating term and whole life insurance using a net premium ratio and the Company’s current assumptions of future cash flows. Assumptions are determined at issuance of the policy and are not updated unless a premium deficiency exists. A premium deficiency exists when the LFPB plus the present value of expected future gross premiums are less than expected future benefits and expenses (based on current assumptions). When a premium deficiency exists, the Company will reduce any deferred acquisition costs and may also establish an additional liability to eliminate the deficiency. See Note 3 for more information on assumptions used in establishing LFPBs related to participating term and whole life insurance.
Policyholder Account Balances
The Company establishes a policyholder account balance liability for customer deposits on universal life insurance, universal life insurance with secondary guarantees (“ULSG”) and deferred annuity contracts. The policyholder account balance liability is equal to the sum of deposits, plus interest credited, less charges and withdrawals, excluding the impact of any applicable charge that may be incurred upon surrender. The Company also holds additional liabilities for certain product features including secondary guarantees on universal life insurance contracts and the crediting rates associated with index-linked annuities.
Additional Liabilities for ULSG
The Company establishes a liability in addition to the account balance for ULSG. These liabilities are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the contract period based on total expected assessments. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. The Company also maintains a liability for profits followed by losses on ULSG determined by projecting future earnings and establishing a liability to offset losses that are expected to occur in later years. Both ULSG liabilities are adjusted for the effects of unrealized investment gains and losses.
The Company reviews cash flow assumptions regularly, and, if they change significantly, the liability for secondary guarantees is adjusted by a cumulative charge or credit to net income. Liabilities for secondary guarantees are presented within future policy benefits with changes in the liabilities reported in policyholder benefits and claims, except for the effects of unrealized investment gains and losses, which are reported in OCI.
12
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)
The most significant assumptions used in estimating liabilities for secondary guarantees are the general account rate of return, mortality, premium persistency, lapses and withdrawals. See Note 3 for more information on the effect of changes in assumptions on the measurement of liabilities for secondary guarantees.
Market Risk Benefits on Annuity Guarantees
MRBs are contracts or contract features that provide protection to the policyholder from capital markets risks by transferring such risks to the Company. MRBs are required to be separated from the deferred annuity host contract and measured at fair value. The Company establishes MRB assets and liabilities for guaranteed minimum benefits on variable annuity contracts including guaranteed minimum death benefits, guaranteed minimum income benefits (“GMIB”), guaranteed minimum accumulation benefits (“GMAB”) and guaranteed minimum withdrawal benefits (“GMWB”). MRB assets are also established for reinsured benefits related to these guarantees. Certain index-linked annuity products may also have guaranteed minimum benefits classified as MRBs.
The measurement of fair value includes an adjustment for the risk that the Company fails to satisfy its obligations, which is referred to as nonperformance risk, as well as risk margin to capture the non-capital markets risks of the instrument, which represents the additional compensation a market participant would require to assume the risks related to the uncertainties in certain actuarial assumptions. MRBs are measured at estimated fair value, with changes reported in change in MRBs, except for the change due to nonperformance risk, which is reported in OCI.
See Note 4 for more information on the effect of changes in inputs and assumptions on the measurement of MRBs and Note 10 for more information on the determination of fair value of MRBs.
Embedded Derivatives on Index-Linked Annuities
The Company issues, and assumes through reinsurance, index-linked annuities which allow the policyholder to participate in returns from certain specified equity indices. The crediting rates associated with these features are classified as embedded derivatives and measured at estimated fair value, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets.
Embedded derivative liabilities are required to be separated from the deferred annuity host contract and measured at fair value. The estimated fair value is determined using a combination of an option pricing model and an option-budget approach. Under this approach, the Company estimates the cost of funding the crediting rate using option pricing and establishes that cost on the balance sheet as a reduction to the initial deposit amount. The estimate of fair value includes an adjustment for nonperformance risk, as well as a risk margin.
Actuarial assumptions are reviewed at least annually, and if they change significantly, the estimated fair value is adjusted through net income. Capital market inputs used in the measurement of index-linked crediting rate embedded derivatives are updated quarterly through net income. The reduction to the initial deposit is accreted back up to the initial deposit over the estimated life of the contract. Embedded derivatives related to index-linked annuities are presented within policyholder account balances while changes in the estimated fair value are reported in net derivative gains (losses).
For more information on the determination of estimated fair value of embedded derivatives, see Note 10.
Recognition of Revenues and Deposits on Insurance Contracts
Premiums related to traditional long-duration contracts are recognized as revenues when due from policyholders. When premiums for income annuities are due over a significantly shorter period than the period over which policyholder benefits are incurred, the Company establishes a deferred profit liability (“DPL”) for the excess of the gross premium over the net premium. DPLs are amortized into net income in proportion to the amount of expected future benefit payments. Assumptions used in the measurement of the DPL are updated at the same time as the related LFPBs, with the updated estimates used to recalculate the DPL as of contract inception. The remeasurement gain or loss from updating DPLs is recognized in current period net income along with the related change in LFPBs.
13
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)
Deposits related to universal life insurance, deferred annuity contracts and investment contracts are credited to policyholder account balances. Revenues from such contracts consist of asset-based investment management fees, cost of insurance (“COI”) charges, risk charges, policy administration fees and surrender charges. These fees, which are included in universal life and investment-type product policy fees, are recognized when assessed to the contract holder, except for non-level insurance charges which are deferred by the establishment of an unearned revenue liability and amortized over the expected life of the contracts.
Premiums and policy fees are presented net of reinsurance.
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles
The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are directly related to the successful acquisition or renewal of insurance contracts are capitalized as deferred policy acquisition costs (“DAC”). These costs mainly consist of commissions and include the portion of employees’ compensation and benefits related to time spent selling, underwriting or processing the issuance of new insurance contracts. All other acquisition-related costs are expensed as incurred.
Value of business acquired (“VOBA”) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity and investment-type contracts in-force as of the acquisition date.
The Company amortizes DAC and VOBA in a manner that approximates a straight-line basis over the expected life of the related contracts. For life insurance contracts, amortization is based on projections of amounts of insurance in-force, while projections of policy counts are used for deferred annuity contracts and expected future benefits payments for income annuities. These assumptions are reviewed at least annually, and if they change significantly, updates are recognized through changes to future amortization. VOBA balances are tested annually to determine if the balance is deemed unrecoverable from expected future profits. All changes in DAC and VOBA balances are recorded to net income.
Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of an existing contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If a modification is considered to have substantially changed the contract, the associated DAC or VOBA is written off immediately through net income and any new acquisition costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed.
The Company also has intangible assets representing deferred sales inducements (“DSI”), which are included in other assets, and unearned revenue liabilities, which are included in other policy-related balances. The Company defers sales inducements and unearned revenue and amortizes the balances using the same methodology and assumptions used to amortize DAC and VOBA.
Reinsurance
The Company enters into reinsurance arrangements pursuant to which it cedes certain insurance risks to unaffiliated and former related party reinsurers. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The accounting for reinsurance arrangements depends on whether the arrangement provides indemnification against loss or liability relating to insurance risk in accordance with GAAP.
For ceded reinsurance of existing in-force blocks of insurance contracts that transfer significant insurance risk, premiums, benefits and the amortization of DAC are reported net of reinsurance ceded. Amounts recoverable from reinsurers related to incurred claims and ceded reserves are included in premiums, reinsurance and other receivables and amounts payable to reinsurers included in other liabilities.
If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included in premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate.
14
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)
The funds withheld liability represents amounts withheld by the Company in accordance with the terms of the reinsurance agreements. Under certain reinsurance agreements, the Company withholds the funds rather than transferring the underlying investments and, as a result, records a funds withheld liability in other liabilities. The Company recognizes interest on funds withheld, included in other expenses, at rates defined by the terms of the agreement which may be contractually specified or directly related to the investment portfolio.
Certain funds withheld arrangements may also contain embedded derivatives measured at fair value that are related to the investment return on the assets withheld. Embedded derivatives related to funds withheld arrangements are presented within policyholder account balances on the consolidated balance sheets, with changes in the estimated fair value reported in net derivative gains (losses).
Reinsurance arrangements may also contain features classified as MRBs, including reinsurance of guaranteed minimum benefits associated with variable annuity contracts.
The Company accounts for assumed reinsurance similar to directly written business.
Investments
Net Investment Income and Net Investment Gains (Losses)
Income from investments is reported in net investment income, unless otherwise stated herein. Gains and losses on sales of investments, impairment losses and changes in valuation allowances are reported in net investment gains (losses), unless otherwise stated herein.
Fixed Maturity Securities Available-For-Sale
Fixed maturity securities classified as available-for-sale are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of OCI, net of policy-related amounts and deferred income taxes. Publicly-traded security transactions are recorded on a trade date basis, while privately-placed and bank loan security transactions are recorded on a settlement date basis. Investment gains and losses on sales are determined on a specific identification basis.
Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts and is based on the estimated economic life of the securities, which for residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”) considers the estimated timing and amount of prepayments of the underlying loans. The amortization of premium and accretion of discount of fixed maturity securities also takes into consideration call and maturity dates.
Amortization of premium and accretion of discount on Structured Securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed, and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for Structured Securities are estimated using inputs obtained from third-party specialists and based on management’s knowledge of the current market. For credit-sensitive Structured Securities and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other Structured Securities, the effective yield is recalculated on a retrospective basis.
The Company regularly evaluates fixed maturity securities for declines in fair value to determine if a credit loss exists. This evaluation is based on management’s case-by-case evaluation of the underlying reasons for the decline in fair value including, but not limited to, an analysis of the gross unrealized losses by severity and financial condition of the issuer.
For fixed maturity securities in an unrealized loss position, when the Company has the intent to sell the security, or it is more likely than not that the Company will be required to sell the security before recovery, the amortized cost basis of the security is written down to fair value through net investment gains (losses).
15
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)
For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. If the Company determines the decline in estimated fair value is due to credit losses, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as an allowance through net investment gains (losses). If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of the allowance related to other-than-credit factors is recorded in OCI.
Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses).
Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses.
Trading Securities
Fixed maturity securities classified as trading securities are reported at their estimated fair value. The recognition and measurement of trading securities and related interest income is consistent with the accounting for fixed maturity securities available-for-sale. Realized and unrealized investment gains (losses) are recorded in net investment income.
Mortgage Loans
Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, and any deferred fees or expenses, and net of an allowance for credit losses. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. The allowance for credit losses for mortgage loans represents the Company’s best estimate of expected credit losses over the remaining life of the loans and is determined using relevant available information from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast.
Policy Loans
Policy loans are stated at unpaid principal balances. Interest income is recorded as earned using the contractual interest rate. Generally, accrued interest is capitalized on the policy’s anniversary date. Any unpaid principal and accrued interest is deducted from the cash surrender value or the death benefit prior to settlement of the insurance policy.
Limited Partnerships and LLCs
The Company uses the equity method of accounting for investments when it has more than a minor ownership interest or more than a minor influence over the investee’s operations; when the Company has virtually no influence over the investee’s operations the investment is carried at estimated fair value. The Company generally recognizes its share of the equity method investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period; while distributions on investments carried at estimated fair value are recognized as earned or received.
Short-term Investments
Short-term investments include securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase and are stated at estimated fair value or amortized cost, which approximates estimated fair value. The Company’s short-term investments generally involve large dollar amounts that turn over quickly and have short maturities.
For the years ended December 31, 2025, 2024 and 2023, cash proceeds from sales, maturities and repayments of short-term investments were $2.1 billion, $1.1 billion and $1.1 billion, respectively. For the years ended December 31, 2025, 2024 and 2023, cash payments on purchases of short-term investments were $1.6 billion, $1.7 billion and $1.4 billion, respectively.
16
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)
Other Invested Assets
Other invested assets consist principally of freestanding derivatives with positive estimated fair values which are described in “— Derivatives” below.
Securities Lending Program
Securities lending transactions whereby blocks of securities are loaned to third parties, primarily brokerage firms and commercial banks, are treated as financing arrangements and the associated liability is recorded at the amount of cash received. Income and expenses associated with securities lending transactions are reported as investment income and investment expense, respectively, in net investment income.
The Company obtains collateral at the inception of the loan, usually cash, in an amount generally equal to 102% of the estimated fair value of the securities loaned and maintains it at a level greater than or equal to 100% for the duration of the loan. The Company monitors the estimated fair value of the securities loaned on a daily basis and additional collateral is obtained as necessary throughout the duration of the loan. Securities loaned under such transactions may be sold or re-pledged by the transferee. The Company is liable to return to the counterparties the cash collateral received.
Funding Agreements
The Company established liabilities for funding agreements associated with the Company’s institutional spread margin business, which are equal to the unpaid principal balance, adjusted for any unamortized premium or discount. Liabilities related to funding agreements are reported in policyholder account balances.
Derivatives
Freestanding Derivatives
Freestanding derivatives are carried at estimated fair value on the Company’s balance sheet either as assets in other invested assets or as liabilities in other liabilities. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement.
If a derivative is not designated or did not qualify as an accounting hedge, changes in the estimated fair value of the derivative are reported in net derivative gains (losses).
The Company generally reports cash received or paid for a derivative in the investing activity section of the statement of cash flows except for cash flows of certain derivative options with deferred premiums, which are reported in the financing activity section of the statement of cash flows.
Hedge Accounting
The Company primarily designates derivatives as a hedge of a forecasted transaction or a variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). When a derivative is designated as a cash flow hedge and is determined to be highly effective, changes in fair value are recorded in OCI and subsequently reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item.
To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship.
The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative or hedged item expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument.
17
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)
When hedge accounting is discontinued the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). The changes in estimated fair value of derivatives previously recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. When the hedged item matures or is sold, or the forecasted transaction is not probable of occurring, the Company immediately reclassifies any remaining balances in OCI to net derivative gains (losses).
Embedded Derivatives
The Company has index-linked annuities that are directly written or assumed through reinsurance contracts that contain embedded derivatives which are required to be separated from their host contracts and reported as derivatives. Certain funds withheld arrangements associated with reinsurance may also contain embedded derivatives. See “— Insurance Contract Obligations” and “— Reinsurance” for additional information on the accounting policies for embedded derivatives.
Fair Value
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In most cases, the exit price and the transaction (or entry) price will be the same at initial recognition.
In determining the estimated fair value of the Company’s investments, fair values are based on unadjusted quoted prices for identical investments in active markets that are readily and regularly obtainable. When such quoted prices are not available, fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical investments, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring management judgment are used to determine the estimated fair value of investments.
Separate Accounts
Separate accounts underlying the Company’s variable life and annuity contracts are reported at fair value. Assets in separate accounts supporting the contract liabilities are legally insulated from the Company’s general account liabilities. Investments in these separate accounts are directed by the contract holder and all investment performance, net of contract fees and assessments, is passed through to the contract holder. Investment performance and the corresponding amounts credited to contract holders of such separate accounts are offset in the same line on the statements of operations.
Separate accounts that do not pass all investment performance to the contract holder, including those underlying certain index-linked annuities, are combined on a line-by-line basis with the Company’s general account assets, liabilities, revenues and expenses. The accounting for investments in these separate accounts is consistent with the methodologies described herein for similar financial instruments held in the general account.
The Company receives asset-based distribution and service fees from mutual funds available to the variable life and annuity contract holders as investment options in its separate accounts. These fees are recognized in the period in which the related services are performed and are included in other revenues.
Income Tax
The Company’s income tax provision was prepared following the modified separate return method. The modified separate return method applies the Accounting Standards Codification 740 — Income Taxes (“ASC 740”) to the standalone financial statements of each member of the consolidated group as if the member were a separate taxpayer and a standalone enterprise, after providing benefits for losses. The Company’s accounting for income taxes represents management’s best estimate of various events and transactions. Current and deferred income taxes included herein and attributable to periods up until the Company’s separation from MetLife, Inc. (together with its subsidiaries and affiliates, “MetLife”) (“Separation”) have been allocated to the Company in a manner that is systematic, rational and consistent with the asset and liability method prescribed by ASC 740.
18
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)
Deferred tax assets and liabilities resulting from temporary differences between the financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse.
The realization of deferred tax assets depends upon the existence of sufficient taxable income within the carryback or carryforward periods under the tax law in the applicable tax jurisdiction. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred income tax assets will not be realized. Significant judgment is required in determining whether valuation allowances should be established, as well as the amount of such allowances. When making such determination, the Company considers many factors, including the jurisdiction in which the deferred tax asset was generated, the length of time that carryforward can be utilized in the various taxing jurisdictions, future taxable income exclusive of reversing temporary differences and carryforwards, future reversals of existing taxable temporary differences, taxable income in prior carryback years, tax planning strategies and the nature, frequency, and amount of cumulative financial reporting income and losses in recent years.
The Inflation Reduction Act, which was enacted in 2022, established a 15% corporate alternative minimum tax (“CAMT”) for corporations whose average annual adjusted financial statement income for any consecutive three — tax year period ending after December 31, 2021, and preceding the tax year exceeds $1.0 billion. The Company elects not to consider any future effects resulting from applicability of the CAMT when assessing the valuation allowance for regular deferred tax assets.
The Company may be required to change its provision for income taxes when estimates used in determining valuation allowances on deferred tax assets significantly change or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, the effect of changes in tax laws, tax regulations, or interpretations of such laws or regulations, is recognized in net income tax expense (benefit) in the period of change.
The Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded on the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Unrecognized tax benefits due to tax uncertainties that do not meet the threshold are included in other liabilities and are charged to earnings in the period that such determination is made.
The Company classifies interest recognized as interest expense and penalties recognized as a component of income tax expense.
Litigation and Other Loss Contingencies
The Company is a party to or involved in a number of legal disputes, including litigation matters, as well as disputes or other matters involving third parties (e.g., vendors, reinsurers or tax or other authorities), and are subject in the ordinary course to a number of regulatory examinations and investigations. The Company reviews relevant information with respect to litigation and other loss contingencies related to these matters and establishes liabilities when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Legal costs are recognized as incurred.
In matters where it is not probable, but it is reasonably possible that a loss will be incurred and the amount of loss can be reasonably estimated, such losses or range of losses are disclosed, and no accrual is made. In the absence of sufficient information to support an assessment of a reasonably possible loss or range of loss, no accrual is made and no loss or range of loss is disclosed.
Other Accounting Policies
Cash and Cash Equivalents
The Company considers all highly liquid securities and other investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at estimated fair value or amortized cost, which approximates estimated fair value.
19
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)
Employee Benefit Plans
Brighthouse Services, LLC, an affiliate, sponsors qualified and non-qualified defined contribution plans, and New England Life Insurance Company (“NELICO”), an affiliate, sponsors certain frozen defined benefit pension and postretirement plans. Within its consolidated statement of operations, the Company has included expenses associated with its participants in these plans.
Adoption of New Accounting Pronouncements
Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASU”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. Except as noted below, there were no significant ASUs adopted during the year ended December 31, 2025.
In December 2023, the FASB issued new guidance on Income Tax Disclosures (ASU 2023‑09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures). This ASU updates the required income tax disclosures to include disclosure of income taxes paid disaggregated by jurisdiction and greater disaggregation of information in the required rate reconciliation. The Company adopted this guidance during fiscal year 2025 on a retrospective basis.
Future Adoption of New Accounting Pronouncements
In November 2025, the FASB issued new guidance on financial instrument credit losses (ASU 2025‑08, Financial Instruments — Credit Losses (Topic 326): Purchased Loans). Under current GAAP, an allowance for credit losses for assets purchased with credit deterioration is established by grossing up the amortized cost basis of the asset, while the allowance for all other loans is recognized separately as an expense. The ASU expands the population of purchased financial instruments subject to the gross-up approach for determining the allowance for credit losses to include all purchased loans that meet certain criteria. The ASU is effective for annual and interim periods starting with fiscal year 2027. This ASU is required to be adopted prospectively for all loans acquired on or after the effective date. The Company is currently evaluating the impact of this guidance on its financial statements.
In November 2024, the FASB issued new guidance on income statement expense disclosures (ASU 2024‑03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220‑40): Disaggregation of Income Statement Expenses). This ASU requires public companies to disclose additional disaggregated information about expenses in the notes to financial statements at each interim and annual reporting period. This ASU is effective for fiscal years starting January 1, 2027, and for interim periods starting January 1, 2028. This ASU is required to be adopted prospectively with the option of retrospective application. The Company is currently evaluating the impact of this guidance on its financial statements.
The Company is organized into and provides its products and services through the following reportable segments: Annuities; Life; Run-off; and Corporate & Other. The Company’s chief operating decision maker (“CODM”) views and manages the business through these segments.
Annuities
The Annuities segment consists of a variety of variable, fixed, index-linked and income annuities designed to address contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer and income security.
Life
The Life segment consists of insurance products, including term, universal, whole and variable life products designed to address policyholders’ needs for financial security and protected wealth transfer, which may be on a tax-advantaged basis.
Run-off
The Run-off segment consists primarily of products that are no longer actively sold and are separately managed, including ULSG, structured settlements, pension risk transfer contracts, certain company-owned life insurance policies and certain funding agreements.
20
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
2. Segment Information (continued)
Corporate & Other
The Corporate & Other segment consists of activities related to funding agreements associated with the Company’s institutional spread margin business, excess capital not allocated to the other segments and interest expense related to the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. The Corporate & Other segment also includes long-term care business reinsured through 100% quota share reinsurance agreements.
Financial Measure and Segment Accounting Policies
The Company’s CODM is its Chief Executive Officer (“CEO”). The CEO uses adjusted earnings to evaluate segment performance and facilitate comparisons to industry results. The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by the investor community by highlighting the results of operations and the underlying profitability drivers of the business.
Adjusted earnings, which may be positive or negative, focuses on the Company’s primary businesses by excluding the impact of market volatility, which could distort trends. Adjusted earnings was updated during the first quarter of 2025 in connection with the establishment of a trading portfolio comprised of certain fixed income securities (classified as “trading securities” under GAAP). The Company did not have trading securities prior to the first quarter of 2025.
The following items are excluded from total revenues in calculating adjusted earnings:
The following items are excluded from total expenses in calculating adjusted earnings:
The provision for income tax related to adjusted earnings is calculated using the statutory tax rate of 21%, net of impacts related to the dividends received deduction, tax credits and current period non-recurring items.
The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for the adjustments to calculate adjusted earnings described above. In addition, segment accounting policies include the methods of capital allocation described below.
Segment investment and capitalization targets are based on statutory oriented risk principles and metrics. Segment invested assets backing liabilities are based on net statutory liabilities plus excess capital, with excess capital determined based on statutory risk-based capital (“RBC”) metrics. Assets in excess of those allocated to the Annuities, Life and Run-off segments, if any, are held in the Corporate & Other segment. Segment net investment income reflects the performance of each segment’s respective invested assets.
21
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
2. Segment Information (continued)
The tables below provide information about the Company’s segments, including significant segment expenses, and reconciliations to Net income (loss) attributable to Brighthouse Life Insurance Company.
Year Ended December 31, 2025 | |||||||||||||||||||||||||||
Annuities | Life | Run-off | Corporate | Total | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Total revenues | $ | 3,230 | $ | 933 | $ | 1,275 | $ | 648 | $ | 6,086 | |||||||||||||||||
Less: Revenues excluded from adjusted earnings (1) | (1,707 | ) | (18 | ) | (257 | ) | 91 | ||||||||||||||||||||
Less: Segment expenses: | |||||||||||||||||||||||||||
Policyholder benefits and claims | 458 | 667 | 625 | — | |||||||||||||||||||||||
Interest credited to policyholder account balances, excluding market | 1,416 | 92 | 236 | 409 | |||||||||||||||||||||||
Amortization of DAC and VOBA | 514 | 50 | — | — | |||||||||||||||||||||||
Interest expense on debt | — | — | — | 67 | |||||||||||||||||||||||
Other expenses (2) | 1,032 | 180 | 127 | 203 | |||||||||||||||||||||||
Less: Provision for income tax expense (benefit) | 289 | (12 | ) | 108 | (69 | ) | |||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | — | — | 1 | |||||||||||||||||||||||
Adjusted earnings (loss) | $ | 1,228 | $ | (26 | ) | $ | 436 | $ | (54 | ) | 1,584 | ||||||||||||||||
Adjustments for: | |||||||||||||||||||||||||||
Net investment gains (losses) | (102 | ) | |||||||||||||||||||||||||
Investment gains (losses) on trading securities | — | ||||||||||||||||||||||||||
Net derivative gains (losses), excluding investment hedge adjustments of | (1,789 | ) | |||||||||||||||||||||||||
Change in market risk benefits | 261 | ||||||||||||||||||||||||||
Market value adjustments | (8 | ) | |||||||||||||||||||||||||
Provision for income tax (expense) benefit | 343 | ||||||||||||||||||||||||||
Net income (loss) attributable to Brighthouse Life Insurance Company | $ | 289 | |||||||||||||||||||||||||
Interest revenue | $ | 3,049 | $ | 382 | $ | 1,152 | $ | 556 | |||||||||||||||||||
22
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
2. Segment Information (continued)
Year Ended December 31, 2024 | |||||||||||||||||||||||||||
Annuities | Life | Run-off | Corporate | Total | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Total revenues | $ | 1,500 | $ | 898 | $ | 995 | $ | 580 | $ | 3,973 | |||||||||||||||||
Less: Revenues excluded from adjusted earnings (1) | (3,350 | ) | (20 | ) | (599 | ) | (47 | ) | |||||||||||||||||||
Less: Segment expenses: | |||||||||||||||||||||||||||
Policyholder benefits and claims | 486 | 548 | 1,105 | — | |||||||||||||||||||||||
Interest credited to policyholder account balances, excluding market | 1,346 | 85 | 243 | 449 | |||||||||||||||||||||||
Amortization of DAC and VOBA | 497 | 53 | — | — | |||||||||||||||||||||||
Interest expense on debt | — | — | — | 67 | |||||||||||||||||||||||
Other expenses (2) | 1,007 | 169 | 165 | 193 | |||||||||||||||||||||||
Less: Provision for income tax expense (benefit) | 291 | 12 | 16 | (55 | ) | ||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | — | — | 1 | |||||||||||||||||||||||
Adjusted earnings (loss) | $ | 1,223 | $ | 51 | $ | 65 | $ | (28 | ) | 1,311 | |||||||||||||||||
Adjustments for: | |||||||||||||||||||||||||||
Net investment gains (losses) | (298 | ) | |||||||||||||||||||||||||
Investment gains (losses) on trading securities | — | ||||||||||||||||||||||||||
Net derivative gains (losses), excluding investment hedge adjustments of | (3,718 | ) | |||||||||||||||||||||||||
Change in market risk benefits | 2,669 | ||||||||||||||||||||||||||
Market value adjustments | 13 | ||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 279 | ||||||||||||||||||||||||||
Net income (loss) attributable to Brighthouse Life Insurance Company | $ | 256 | |||||||||||||||||||||||||
Interest revenue | $ | 2,850 | $ | 420 | $ | 1,234 | $ | 626 | |||||||||||||||||||
23
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
2. Segment Information (continued)
Year Ended December 31, 2023 | ||||||||||||||||||||||||||||
Annuities | Life | Run-off | Corporate | Total | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Total revenues | $ | 508 | $ | 987 | $ | 1,404 | $ | 506 | $ | 3,405 | ||||||||||||||||||
Less: Revenues excluded from adjusted earnings (1) | (3,932 | ) | (26 | ) | (239 | ) | (70 | ) | ||||||||||||||||||||
Less: Segment expenses: | ||||||||||||||||||||||||||||
Policyholder benefits and claims | 508 | 609 | 1,301 | — | ||||||||||||||||||||||||
Interest credited to policyholder account balances, excluding market | 1,048 | 79 | 274 | 388 | ||||||||||||||||||||||||
Amortization of DAC and VOBA | 507 | 57 | — | — | ||||||||||||||||||||||||
Interest expense on debt | — | — | — | 70 | ||||||||||||||||||||||||
Other expenses (2) | 997 | 182 | 167 | 209 | ||||||||||||||||||||||||
Less: Provision for income tax expense (benefit) | 257 | 17 | (22 | ) | (50 | ) | ||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | — | — | 1 | ||||||||||||||||||||||||
Adjusted earnings (loss) | $ | 1,123 | $ | 69 | $ | (77 | ) | $ | (42 | ) | 1,073 | |||||||||||||||||
Adjustments for: | ||||||||||||||||||||||||||||
Net investment gains (losses) | (242 | ) | ||||||||||||||||||||||||||
Investment gains (losses) on trading securities | — | |||||||||||||||||||||||||||
Net derivative gains (losses), excluding investment hedge adjustments of | (4,025 | ) | ||||||||||||||||||||||||||
Change in market risk benefits | 1,497 | |||||||||||||||||||||||||||
Market value adjustments | (12 | ) | ||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 585 | |||||||||||||||||||||||||||
Net income (loss) attributable to Brighthouse Life Insurance Company | $ | (1,124 | ) | |||||||||||||||||||||||||
Interest revenue | $ | 2,558 | $ | 391 | $ | 1,141 | $ | 575 | ||||||||||||||||||||
24
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
2. Segment Information (continued)
Total assets by segment were as follows at:
December 31, |
2025 | 2024 | ||||||||
(In millions) | |||||||||
Annuities | $ | 164,175 | $ | 160,887 | |||||
Life | 21,802 | 20,821 | |||||||
Run-off | 25,470 | 24,894 | |||||||
Corporate & Other | 20,539 | 21,989 | |||||||
Total | $ | 231,986 | $ | 228,591 | |||||
Total premiums, universal life and investment-type product policy fees and other revenues by major product group were as follows:
Years Ended December 31, | ||||||||||||
2025 | 2024 | 2023 | ||||||||||
(In millions) | ||||||||||||
Annuity products | $ | 1,892 | $ | 2,001 | $ | 1,890 | ||||||
Life insurance products | 934 | 848 | 1,110 | |||||||||
Other products | 12 | 10 | 7 | |||||||||
Total | $ | 2,838 | $ | 2,859 | $ | 3,007 | ||||||
Substantially all of the Company’s premiums, universal life and investment-type product policy fees and other revenues originated in the U.S.
Revenues derived from any individual customer did not exceed 10% of premiums, universal life and investment-type product policy fees and other revenues for the years ended December 31, 2025, 2024 and 2023.
25
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
Liability for Future Policy Benefits
Information regarding LFPBs for non-participating traditional and limited-payment contracts was as follows:
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Term and | Income | Structured | Term and | Income | Structured | Term and | Income | Structured | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Present value of expected net premiums: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 2,758 | $ | — | $ | — | $ | 2,899 | $ | — | $ | — | $ | 2,804 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
Beginning balance at original discount rate | 3,110 | — | — | 3,162 | — | — | 3,146 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Effect of model refinements | 3 | — | — | 4 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Effect of changes in cash flow assumptions | (115 | ) | — | — | 146 | — | — | 206 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Effect of actual variances from expected | (46 | ) | — | — | 8 | — | — | (17 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||
Adjusted beginning of year balance | 2,952 | — | — | 3,320 | — | — | 3,335 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Issuances | 14 | — | — | 67 | — | — | 93 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Interest accrual | 102 | — | — | 110 | — | — | 108 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Net premiums collected | (363 | ) | — | — | (387 | ) | — | — | (374 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||
Ending balance at original discount rate | 2,705 | — | — | 3,110 | — | — | 3,162 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Effect of changes in discount rate assumptions | (243 | ) | — | — | (352 | ) | — | — | (263 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||
Balance, end of year | $ | 2,462 | $ | — | $ | — | $ | 2,758 | $ | — | $ | — | $ | 2,899 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
Present value of expected future policy | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 5,245 | $ | 3,728 | $ | 6,118 | $ | 5,385 | $ | 3,719 | $ | 6,697 | $ | 5,172 | $ | 3,469 | $ | 6,793 | ||||||||||||||||||||||||||||||||||||
Beginning balance at original discount rate | 5,908 | 4,121 | 6,876 | 5,905 | 3,993 | 7,085 | 5,816 | 3,848 | 7,410 | |||||||||||||||||||||||||||||||||||||||||||||
Effect of model refinements | 2 | — | 4 | 10 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Effect of changes in cash flow assumptions | (128 | ) | 18 | 22 | 235 | (23 | ) | 82 | 296 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Effect of actual variances from expected | (73 | ) | (37 | ) | (29 | ) | (5 | ) | — | (10 | ) | (15 | ) | (21 | ) | (47 | ) | |||||||||||||||||||||||||||||||||||||
Adjusted beginning of year balance | 5,709 | 4,102 | 6,873 | 6,145 | 3,970 | 7,157 | 6,097 | 3,827 | 7,363 | |||||||||||||||||||||||||||||||||||||||||||||
Issuances | 14 | 383 | — | 72 | 400 | — | 99 | 369 | — | |||||||||||||||||||||||||||||||||||||||||||||
Interest accrual | 205 | 156 | 293 | 213 | 148 | 305 | 211 | 139 | 314 | |||||||||||||||||||||||||||||||||||||||||||||
Benefit payments | (482 | ) | (410 | ) | (531 | ) | (522 | ) | (397 | ) | (586 | ) | (502 | ) | (342 | ) | (592 | ) | ||||||||||||||||||||||||||||||||||||
Ending balance at original discount rate | 5,446 | 4,231 | 6,635 | 5,908 | 4,121 | 6,876 | 5,905 | 3,993 | 7,085 | |||||||||||||||||||||||||||||||||||||||||||||
Effect of changes in discount rate assumptions | (462 | ) | (284 | ) | (626 | ) | (663 | ) | (393 | ) | (758 | ) | (520 | ) | (274 | ) | (388 | ) | ||||||||||||||||||||||||||||||||||||
Balance, end of year | $ | 4,984 | $ | 3,947 | $ | 6,009 | $ | 5,245 | $ | 3,728 | $ | 6,118 | $ | 5,385 | $ | 3,719 | $ | 6,697 | ||||||||||||||||||||||||||||||||||||
Net liability for future policy benefits, end of | $ | 2,522 | $ | 3,947 | $ | 6,009 | $ | 2,487 | $ | 3,728 | $ | 6,118 | $ | 2,486 | $ | 3,719 | $ | 6,697 | ||||||||||||||||||||||||||||||||||||
Less: Reinsurance recoverable, end of year | 15 | 32 | 56 | 19 | 31 | 59 | 24 | 30 | 65 | |||||||||||||||||||||||||||||||||||||||||||||
Net liability for future policy benefits, after | $ | 2,507 | $ | 3,915 | $ | 5,953 | $ | 2,468 | $ | 3,697 | $ | 6,059 | $ | 2,462 | $ | 3,689 | $ | 6,632 | ||||||||||||||||||||||||||||||||||||
Weighted-average duration of liability | 7.2 years | 7.7 years | 11.5 years | 7.6 years | 7.9 years | 11.6 years | 8.8 years | 8.2 years | 11.6 years | |||||||||||||||||||||||||||||||||||||||||||||
Weighted-average interest accretion rate | 3.90 | % | 4.14 | % | 4.47 | % | 3.92 | % | 4.04 | % | 4.46 | % | 3.91 | % | 3.99 | % | 4.46 | % | ||||||||||||||||||||||||||||||||||||
Current discount rate | 5.01 | % | 5.14 | % | 5.47 | % | 5.42 | % | 5.48 | % | 5.64 | % | 4.94 | % | 4.95 | % | 5.03 | % | ||||||||||||||||||||||||||||||||||||
Gross premiums or assessments recognized | $ | 519 | $ | 492 | $ | — | $ | 563 | $ | 485 | $ | — | $ | 595 | $ | 472 | $ | — | ||||||||||||||||||||||||||||||||||||
Expected future gross premiums, undiscounted | $ | 4,959 | $ | — | $ | — | $ | 5,714 | $ | — | $ | — | $ | 5,999 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
Expected future gross premiums, discounted | $ | 3,738 | $ | — | $ | — | $ | 4,244 | $ | — | $ | — | $ | 4,535 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
Expected future benefit payments, | $ | 7,284 | $ | 5,896 | $ | 12,820 | $ | 8,031 | $ | 5,759 | $ | 13,336 | $ | 8,148 | $ | 5,616 | $ | 13,767 | ||||||||||||||||||||||||||||||||||||
Expected future benefit payments, discounted | $ | 5,446 | $ | 4,231 | $ | 6,635 | $ | 5,908 | $ | 4,121 | $ | 6,876 | $ | 5,905 | $ | 3,993 | $ | 7,085 | ||||||||||||||||||||||||||||||||||||
26
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
3. Insurance Liabilities (continued)
The measurement of LFPBs can be significantly impacted by changes in assumptions for policyholder behavior. As part of the 2025 and 2024 annual actuarial reviews (“AAR”), the Company updated assumptions regarding mortality and lapses for term participating and non-participating whole life insurance. The impact from changes in assumptions is presented in effect of changes in cash flow assumptions in the table above.
Information regarding the additional insurance liabilities for universal life-type contracts with secondary guarantees was as follows:
Years Ended December 31, | ||||||||||||||
2025 | 2024 | 2023 | ||||||||||||
(Dollars in millions) | ||||||||||||||
Balance, beginning of year | $ | 8,986 | $ | 7,607 | $ | 6,935 | ||||||||
Beginning balance before the effect of unrealized gains and losses | 9,277 | 7,784 | 7,175 | |||||||||||
Effect of changes in cash flow assumptions | 480 | 895 | 52 | |||||||||||
Effect of actual variances from expected experience | 133 | 167 | 145 | |||||||||||
Adjusted beginning of year balance | 9,890 | 8,846 | 7,372 | |||||||||||
Interest accrual | 469 | 406 | 357 | |||||||||||
Net assessments collected | 480 | 446 | 414 | |||||||||||
Benefit payments | (541 | ) | (421 | ) | (359 | ) | ||||||||
Ending balance before the effect of unrealized gains and losses | 10,298 | 9,277 | 7,784 | |||||||||||
Effect of unrealized gains and losses | (221 | ) | (291 | ) | (177 | ) | ||||||||
Balance, end of year | 10,077 | 8,986 | 7,607 | |||||||||||
Less: Reinsurance recoverable, end of year | 1,801 | 1,535 | 1,438 | |||||||||||
Net additional liability, after reinsurance recoverable | $ | 8,276 | $ | 7,451 | $ | 6,169 | ||||||||
Weighted-average duration of liability | 6.6 years | 6.6 years | 6.7 years | |||||||||||
Weighted-average interest accretion rate | 4.95 | % | 4.94 | % | 4.92 | % | ||||||||
Gross assessments recognized during period | $ | 1,076 | $ | 1,083 | $ | 1,064 | ||||||||
The measurement of liabilities for secondary guarantees can be significantly impacted by changes in assumptions for policyholder behavior, as well as the expected general account rate of return, which is driven by the Company’s assumption for long-term treasury yields. The Company’s practice of projecting treasury yields uses a mean reversion approach that assumes that long-term interest rates are less influenced by short-term fluctuations and are only changed when sustained interim deviations are expected. As part of the 2025 and 2024 AARs, the Company updated assumptions regarding policyholder behavior, including mortality, premium persistency, lapses and withdrawals. In 2025, the Company also increased the long-term general account earned rate, driven by an increase in the mean reversion rate, from 4.00% to 4.50%. The impact from changes in assumptions, excluding the effects on the ULSG liability for profits followed by losses, is presented in effect of changes in cash flow assumptions in the table above.
27
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
3. Insurance Liabilities (continued)
A reconciliation of the net LFPBs for non-participating traditional and limited-payment contracts and the additional insurance liabilities for universal life-type contracts with secondary guarantees reported in the preceding rollforward tables to LFPBs on the consolidated balance sheets was as follows at:
December 31, | ||||||||||||
2025 | 2024 | |||||||||||
(In millions) | ||||||||||||
Liabilities reported in the preceding rollforward tables | $ | 22,555 | $ | 21,319 | ||||||||
Long-term care insurance (1) | 5,203 | 5,190 | ||||||||||
ULSG liabilities, including liability for profits followed by losses (2) | 57 | 875 | ||||||||||
Participating whole life insurance (3) | 3,054 | 2,969 | ||||||||||
Deferred profit liabilities | 452 | 428 | ||||||||||
Other | 361 | 304 | ||||||||||
Total liability for future policy benefits | $ | 31,682 | $ | 31,085 | ||||||||
28
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
3. Insurance Liabilities (continued)
Policyholder Account Balances
Information regarding policyholder account balances was as follows:
Universal | Variable | Index-linked | Fixed Rate | ULSG | Company- | ||||||||
(Dollars in millions) | |||||||||||||
Year Ended December 31, 2025 |
Balance, beginning of year | $ | 2,028 | $ | 3,667 | $ | 48,605 | $ | 14,665 | $ | 4,779 | $ | 1,166 | ||||||
Premiums and deposits | 248 | 50 | 8,396 | 1,225 | 604 | — | ||||||||||||
Surrenders and withdrawals | (62 | ) | (554 | ) | (7,861 | ) | (2,835 | ) | (29 | ) | — | |||||||
Benefit payments | (47 | ) | (89 | ) | (365 | ) | (365 | ) | (87 | ) | (10 | ) | ||||||
Net transfers from (to) separate account | 18 | 107 | — | — | — | (524 | ) | |||||||||||
Interest credited | 89 | 101 | 756 | 562 | 154 | 21 | ||||||||||||
Policy charges | (199 | ) | (18 | ) | (39 | ) | — | (960 | ) | (7 | ) | |||||||
Changes related to embedded derivatives | 2 | — | 3,102 | — | — | — | ||||||||||||
Balance, end of year | $ | 2,077 | $ | 3,264 | $ | 52,594 | $ | 13,252 | $ | 4,461 | $ | 646 | ||||||
Weighted-average crediting rate (2) | 4.35 | % | 2.88 | % | 1.93 | % | 3.97 | % | 3.33 | % | 2.78 | % | ||||||
Year Ended December 31, 2024 |
Balance, beginning of year | $ | 1,980 | $ | 4,111 | $ | 41,627 | $ | 14,672 | $ | 5,052 | $ | 653 | ||||||
Premiums and deposits | 229 | 73 | 8,228 | 1,127 | 645 | — | ||||||||||||
Surrenders and withdrawals | (56 | ) | (616 | ) | (5,532 | ) | (1,356 | ) | (23 | ) | — | |||||||
Benefit payments | (46 | ) | (93 | ) | (324 | ) | (345 | ) | (70 | ) | (9 | ) | ||||||
Net transfers from (to) separate account | 32 | 102 | — | — | — | 500 | ||||||||||||
Interest credited | 82 | 109 | 673 | 567 | 163 | 29 | ||||||||||||
Policy charges | (193 | ) | (19 | ) | (23 | ) | — | (988 | ) | (7 | ) | |||||||
Changes related to embedded derivatives | — | — | 3,956 | — | — | — | ||||||||||||
Balance, end of year | $ | 2,028 | $ | 3,667 | $ | 48,605 | $ | 14,665 | $ | 4,779 | $ | 1,166 | ||||||
Weighted-average crediting rate (2) | 4.10 | % | 2.81 | % | 1.79 | % | 3.84 | % | 3.32 | % | 3.63 | % | ||||||
Year Ended December 31, 2023 |
Balance, beginning of year | $ | 2,100 | $ | 4,664 | $ | 33,897 | $ | 14,274 | $ | 5,307 | $ | 641 | ||||||
Premiums and deposits | 210 | 75 | 7,183 | 2,694 | 660 | — | ||||||||||||
Surrenders and withdrawals | (129 | ) | (647 | ) | (3,732 | ) | (2,405 | ) | (23 | ) | — | |||||||
Benefit payments | (59 | ) | (101 | ) | (240 | ) | (377 | ) | (85 | ) | (8 | ) | ||||||
Net transfers from (to) separate account | 18 | 14 | — | — | — | 1 | ||||||||||||
Interest credited | 40 | 129 | 445 | 486 | 208 | 28 | ||||||||||||
Policy charges | (200 | ) | (23 | ) | (11 | ) | — | (1,015 | ) | (9 | ) | |||||||
Changes related to embedded derivatives | — | — | 4,085 | — | — | — | ||||||||||||
Balance, end of year | $ | 1,980 | $ | 4,111 | $ | 41,627 | $ | 14,672 | $ | 5,052 | $ | 653 | ||||||
Weighted-average crediting rate (2) | 2.03 | % | 2.91 | % | 1.47 | % | 3.31 | % | 4.02 | % | 4.33 | % | ||||||
29
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
3. Insurance Liabilities (continued)
A reconciliation of policyholder account balances reported in the preceding rollforward table to the liability for policyholder account balances on the consolidated balance sheets was as follows at:
December 31, | ||||||||
2025 | 2024 | |||||||
(In millions) | ||||||||
Policyholder account balances reported in the preceding rollforward table | $ | 76,294 | $ | 74,910 | ||||
Funding agreements classified as investment contracts | 9,502 | 11,002 | ||||||
Institutional group annuities | 569 | 370 | ||||||
Other investment contract liabilities | 809 | 880 | ||||||
Total policyholder account balances | $ | 87,174 | $ | 87,162 | ||||
30
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
3. Insurance Liabilities (continued)
The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums was as follows at:
Range of Guaranteed Minimum Crediting Rate | At Guaranteed | 1 to 50 Basis | 51 to 150 Basis | Greater than | Total | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
December 31, 2025 | ||||||||||||||||||||||||||
Annuities (1): | ||||||||||||||||||||||||||
Less than 2.00% | $ | 384 | $ | 127 | $ | 188 | $ | 8,133 | $ | 8,832 | ||||||||||||||||
2.00% to 3.99% | 6,155 | 497 | 518 | 327 | 7,497 | |||||||||||||||||||||
Greater than 3.99% | 740 | — | — | — | 740 | |||||||||||||||||||||
Total | $ | 7,279 | $ | 624 | $ | 706 | $ | 8,460 | $ | 17,069 | ||||||||||||||||
Life insurance (2) (3): | ||||||||||||||||||||||||||
Less than 2.00% | $ | — | $ | — | $ | — | $ | 413 | $ | 413 | ||||||||||||||||
2.00% to 3.99% | — | 476 | 43 | 112 | 631 | |||||||||||||||||||||
Greater than 3.99% | 969 | — | — | — | 969 | |||||||||||||||||||||
Total | $ | 969 | $ | 476 | $ | 43 | $ | 525 | $ | 2,013 | ||||||||||||||||
ULSG (3): | ||||||||||||||||||||||||||
Less than 2.00% | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
2.00% to 3.99% | 965 | 1,279 | 1,496 | 222 | 3,962 | |||||||||||||||||||||
Greater than 3.99% | 484 | — | — | — | 484 | |||||||||||||||||||||
Total | $ | 1,449 | $ | 1,279 | $ | 1,496 | $ | 222 | $ | 4,446 | ||||||||||||||||
December 31, 2024 | ||||||||||||||||||||||||||
Annuities (1): | ||||||||||||||||||||||||||
Less than 2.00% | $ | 516 | $ | 112 | $ | 230 | $ | 8,749 | $ | 9,607 | ||||||||||||||||
2.00% to 3.99% | 6,633 | 439 | 416 | 334 | 7,822 | |||||||||||||||||||||
Greater than 3.99% | 781 | — | — | — | 781 | |||||||||||||||||||||
Total | $ | 7,930 | $ | 551 | $ | 646 | $ | 9,083 | $ | 18,210 | ||||||||||||||||
Life insurance (2) (3): | ||||||||||||||||||||||||||
Less than 2.00% | $ | — | $ | — | $ | — | $ | 308 | $ | 308 | ||||||||||||||||
2.00% to 3.99% | — | 471 | 47 | 128 | 646 | |||||||||||||||||||||
Greater than 3.99% | 1,020 | — | — | — | 1,020 | |||||||||||||||||||||
Total | $ | 1,020 | $ | 471 | $ | 47 | $ | 436 | $ | 1,974 | ||||||||||||||||
ULSG (3): | ||||||||||||||||||||||||||
Less than 2.00% | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
2.00% to 3.99% | 1,052 | 1,386 | 1,602 | 238 | 4,278 | |||||||||||||||||||||
Greater than 3.99% | 484 | — | — | — | 484 | |||||||||||||||||||||
Total | $ | 1,536 | $ | 1,386 | $ | 1,602 | $ | 238 | $ | 4,762 | ||||||||||||||||
See Note 5 for information regarding net amount at risk and cash surrender values.
31
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
3. Insurance Liabilities (continued)
Obligations Under Funding Agreements
Institutional Spread Margin Business
Brighthouse Life Insurance Company has issued unsecured fixed and floating rate funding agreements to certain special purpose entities that have issued either debt securities or commercial paper for which payment of interest and principal is secured by such funding agreements. The Company had obligations outstanding under these funding agreements of $4.3 billion and $5.5 billion at December 31, 2025 and 2024, respectively.
Brighthouse Life Insurance Company established a secured funding agreement-backed repurchase agreement program in January 2024. Brighthouse Life Insurance Company may enter into repurchase agreements with bank counterparties and the proceeds of the repurchase agreements are then used by a special purpose entity to purchase funding agreements from Brighthouse Life Insurance Company. The Company had obligations under this program of $500 million at both December 31, 2025 and 2024.
Brighthouse Life Insurance Company has a secured funding agreement program with the Federal Home Loan Bank (“FHLB”) of Atlanta and the Federal Agricultural Mortgage Corporation and its affiliate Farmer Mac Mortgage Securities Corporation (“Farmer Mac”). Funding agreements are issued to FHLB and Farmer Mac in exchange for cash, for which these programs have been granted liens on certain assets, some of which are in their custody to collateralize the Company’s obligations under the funding agreements. Upon any event of default by the Company, the program recovery on the collateral is limited to the amount of the Company’s liabilities to FHLB and Farmer Mac, respectively. The Company had obligations outstanding under these programs of $4.7 billion and $5.0 billion at December 31, 2025 and 2024, respectively.
See Note 8 for information on invested assets pledged as collateral in connection with funding agreements.
Information regarding MRB assets and liabilities associated with variable annuities was as follows:
Years Ended December 31, | ||||||||||||||
2025 | 2024 | 2023 | ||||||||||||
(Dollars in millions) | ||||||||||||||
Balance, beginning of year | $ | 7,250 | $ | 9,722 | $ | 9,997 | ||||||||
Balance, beginning of year, before effect of changes in nonperformance risk | 5,236 | 7,348 | 8,253 | |||||||||||
Decrements | (198 | ) | (180 | ) | (176 | ) | ||||||||
Effect of changes in future expected assumptions | 613 | (53 | ) | 260 | ||||||||||
Effect of actual different from expected experience | 153 | 140 | 186 | |||||||||||
Effect of changes in interest rates | 194 | (1,940 | ) | (427 | ) | |||||||||
Effect of changes in fund returns | (1,736 | ) | (973 | ) | (2,203 | ) | ||||||||
Effect of changes in equity index volatility | 38 | 75 | (106 | ) | ||||||||||
Issuances | (4 | ) | (4 | ) | (7 | ) | ||||||||
Effect of changes in risk margin | (69 | ) | (72 | ) | (34 | ) | ||||||||
Aging of the block and other | 1,202 | 895 | 1,602 | |||||||||||
Balance, end of year, before effect of changes in nonperformance risk | 5,429 | 5,236 | 7,348 | |||||||||||
Effect of changes in nonperformance risk | 1,588 | 2,014 | 2,374 | |||||||||||
Balance, end of year | 7,017 | 7,250 | 9,722 | |||||||||||
Less: Reinsurance recoverable, end of year | 8 | 17 | 43 | |||||||||||
Balance, end of year, net of reinsurance (1) | $ | 7,009 | $ | 7,233 | $ | 9,679 | ||||||||
Weighted-average attained age of contract holder | 74.6 years | 73.9 years | 73.0 years | |||||||||||
32
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
4. Market Risk Benefits (continued)
Market conditions, including, but not limited to, changes in interest rates, equity indices, market volatility and variations in actuarial assumptions, including policyholder behavior, mortality and risk margins related to non-capital markets inputs, as well as changes in nonperformance risk, may result in significant fluctuations in the estimated fair value of the guarantees. As part of the 2025 and 2024 AARs, the Company updated assumptions regarding policyholder behavior, mortality and separate account fund allocations. The impact from changes in assumptions is presented in effect of changes in future expected assumptions in the table above.
Separate Accounts
Information regarding separate account liabilities was as follows:
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||
Variable | Universal | Company- | Variable | Universal | Company- | Variable | Universal | Company- | ||||||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 74,483 | $ | 2,484 | $ | 1,799 | $ | 77,086 | $ | 2,276 | $ | 2,148 | $ | 74,845 | $ | 1,970 | $ | 1,919 | ||||||||||||||||||||||||||||||||
Premiums and deposits | 974 | 73 | — | 828 | 80 | — | 762 | 84 | — | |||||||||||||||||||||||||||||||||||||||||
Surrenders and withdrawals | (7,885 | ) | (89 | ) | (32 | ) | (7,836 | ) | (80 | ) | (21 | ) | (6,073 | ) | (68 | ) | (20 | ) | ||||||||||||||||||||||||||||||||
Benefit payments | (1,652 | ) | (33 | ) | (35 | ) | (1,511 | ) | (25 | ) | (22 | ) | (1,391 | ) | (18 | ) | (28 | ) | ||||||||||||||||||||||||||||||||
Investment performance | 9,628 | 350 | 245 | 8,150 | 346 | 251 | 11,071 | 405 | 327 | |||||||||||||||||||||||||||||||||||||||||
Policy charges | (2,001 | ) | (80 | ) | (63 | ) | (2,109 | ) | (81 | ) | (62 | ) | (2,098 | ) | (78 | ) | (58 | ) | ||||||||||||||||||||||||||||||||
Net transfers from (to) general | (107 | ) | (18 | ) | 524 | (102 | ) | (32 | ) | (500 | ) | (14 | ) | (18 | ) | (1 | ) | |||||||||||||||||||||||||||||||||
Other | (24 | ) | — | 9 | (23 | ) | — | 5 | (16 | ) | (1 | ) | 9 | |||||||||||||||||||||||||||||||||||||
Balance, end of year | $ | 73,416 | $ | 2,687 | $ | 2,447 | $ | 74,483 | $ | 2,484 | $ | 1,799 | $ | 77,086 | $ | 2,276 | $ | 2,148 | ||||||||||||||||||||||||||||||||
A reconciliation of separate account liabilities reported in the preceding rollforward table to the separate account liabilities balance on the consolidated balance sheets was as follows at:
December 31, | ||||||||
2025 | 2024 | |||||||
(In millions) | ||||||||
Separate account liabilities reported in the preceding rollforward table | $ | 78,550 | $ | 78,766 | ||||
Variable income annuities | 249 | 217 | ||||||
Pension risk transfer annuities | 26 | 23 | ||||||
Total separate account liabilities | $ | 78,825 | $ | 79,006 | ||||
The aggregate estimated fair value of assets, by major investment asset category, supporting separate accounts was as follows at:
December 31, | |||||||||
2025 | 2024 | ||||||||
(In millions) | |||||||||
Equity securities | $ | 78,611 | $ | 78,793 | |||||
Fixed maturity securities | 211 | 207 | |||||||
Cash and cash equivalents | — | 2 | |||||||
Other assets | 3 | 4 | |||||||
Total aggregate estimated fair value of assets | $ | 78,825 | $ | 79,006 | |||||
33
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
5. Separate Accounts (continued)
Net Amount at Risk and Cash Surrender Values
Information regarding the net amount at risk and cash surrender value for insurance products was as follows at:
Universal | Variable | Index- | Fixed Rate | ULSG | Company- | |||||||||
(In millions) | ||||||||||||||
December 31, 2025 |
Account balances reported in the preceding rollforward | ||||||||||||||||||
Policyholder account balances | $ | 2,077 | $ | 3,264 | $ | 52,594 | $ | 13,252 | $ | 4,461 | $ | 646 | ||||||
Separate account liabilities | 2,687 | 73,416 | — | — | — | 2,447 | ||||||||||||
Total account balances | $ | 4,764 | $ | 76,680 | $ | 52,594 | $ | 13,252 | $ | 4,461 | $ | 3,093 | ||||||
Net amount at risk | $ | 19,904 | $ | 11,864 | N/A | N/A | $ | 61,647 | $ | 2,603 | ||||||||
Cash surrender value | $ | 4,553 | $ | 76,347 | $ | 52,999 | $ | 13,275 | $ | 4,074 | $ | 2,891 | ||||||
December 31, 2024 |
Account balances reported in the preceding rollforward | ||||||||||||||||||
Policyholder account balances | $ | 2,028 | $ | 3,667 | $ | 48,605 | $ | 14,665 | $ | 4,779 | $ | 1,166 | ||||||
Separate account liabilities | 2,484 | 74,483 | — | — | — | 1,799 | ||||||||||||
Total account balances | $ | 4,512 | $ | 78,150 | $ | 48,605 | $ | 14,665 | $ | 4,779 | $ | 2,965 | ||||||
Net amount at risk | $ | 20,958 | $ | 12,757 | N/A | N/A | $ | 63,580 | $ | 2,649 | ||||||||
Cash surrender value | $ | 4,303 | $ | 77,761 | $ | 47,013 | $ | 14,361 | $ | 4,316 | $ | 2,134 | ||||||
December 31, 2023 |
Account balances reported in the preceding rollforward | ||||||||||||||||||
Policyholder account balances | $ | 1,980 | $ | 4,111 | $ | 41,627 | $ | 14,672 | $ | 5,052 | $ | 653 | ||||||
Separate account liabilities | 2,276 | 77,086 | — | — | — | 2,148 | ||||||||||||
Total account balances | $ | 4,256 | $ | 81,197 | $ | 41,627 | $ | 14,672 | $ | 5,052 | $ | 2,801 | ||||||
Net amount at risk | $ | 22,214 | $ | 13,156 | N/A | N/A | $ | 65,299 | $ | 2,644 | ||||||||
Cash surrender value | $ | 4,049 | $ | 80,756 | $ | 39,270 | $ | 14,068 | $ | 4,498 | $ | 2,579 | ||||||
Products may contain both separate account and general account fund options; accordingly, net amount at risk and cash surrender value reported in the table above relate to the total account balance for each respective product grouping.
34
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
Deferred Policy Acquisition Costs and Value of Business Acquired
See Note 1 for a description of capitalized acquisition costs.
Information regarding DAC and VOBA was as follows:
Variable | Fixed Rate | Index-linked | Term and | Universal Life | |||||||||
(In millions) | |||||||||||||
DAC: |
Balance at January 1, 2023 | $ | 2,414 | $ | 107 | $ | 1,213 | $ | 347 | $ | 115 | |||||
Capitalization | 36 | 14 | 344 | 2 | 13 | ||||||||||
Amortization | (233 | ) | (11 | ) | (225 | ) | (43 | ) | (9 | ) | |||||
Balance at December 31, 2023 | 2,217 | 110 | 1,332 | 306 | 119 | ||||||||||
Capitalization | 39 | 8 | 373 | 4 | 13 | ||||||||||
Amortization | (216 | ) | (3 | ) | (243 | ) | (39 | ) | (10 | ) | |||||
Balance at December 31, 2024 | 2,040 | 115 | 1,462 | 271 | 122 | ||||||||||
Capitalization | 46 | 7 | 394 | (2 | ) | 21 | |||||||||
Amortization | (205 | ) | (2 | ) | (275 | ) | (38 | ) | (8 | ) | |||||
Balance at December 31, 2025 | $ | 1,881 | $ | 120 | $ | 1,581 | $ | 231 | $ | 135 | |||||
VOBA: |
Balance at January 1, 2023 | $ | 341 | $ | 65 | $ | — | $ | 5 | $ | 35 | |||||
Amortization | (32 | ) | (6 | ) | — | (1 | ) | (4 | ) | ||||||
Balance at December 31, 2023 | 309 | 59 | — | 4 | 31 | ||||||||||
Amortization | (30 | ) | (4 | ) | — | (1 | ) | (4 | ) | ||||||
Balance at December 31, 2024 | 279 | 55 | — | 3 | 27 | ||||||||||
Amortization | (28 | ) | (4 | ) | — | — | (4 | ) | |||||||
Balance at December 31, 2025 | $ | 251 | $ | 51 | $ | — | $ | 3 | $ | 23 | |||||
Total DAC and VOBA: |
Balance at December 31, 2025 | $ | 2,132 | $ | 171 | $ | 1,581 | $ | 234 | $ | 158 | ||||
Balance at December 31, 2024 | $ | 2,319 | $ | 170 | $ | 1,462 | $ | 274 | $ | 149 | ||||
Balance at December 31, 2023 | $ | 2,526 | $ | 169 | $ | 1,332 | $ | 310 | $ | 150 |
Deferred Sales Inducements
Information regarding DSI, included in other assets, was as follows:
December 31, | |||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||
Variable | Fixed Rate | Variable | Fixed Rate | Variable | Fixed Rate | ||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 189 | $ | 6 | $ | 209 | $ | 8 | $ | 233 | $ | 9 | |||||||||||||||||||||||||||||
Capitalization | — | — | 1 | — | 1 | — | |||||||||||||||||||||||||||||||||||
Amortization | (20 | ) | (1 | ) | (21 | ) | (2 | ) | (25 | ) | (1 | ) | |||||||||||||||||||||||||||||
Balance, end of year | $ | 169 | $ | 5 | $ | 189 | $ | 6 | $ | 209 | $ | 8 | |||||||||||||||||||||||||||||
35
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
6. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles (continued)
Unearned Revenue
Information regarding unearned revenue, included in other policy-related balances, was as follows:
December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Universal | ULSG | Variable | Universal | ULSG | Variable | Universal | ULSG | Variable | ||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 190 | $ | 715 | $ | 59 | $ | 167 | $ | 612 | $ | 66 | $ | 143 | $ | 488 | $ | 73 | ||||||||||||||||||||||||||||||||||||
Capitalization | 38 | 154 | — | 34 | 166 | — | 35 | 174 | — | |||||||||||||||||||||||||||||||||||||||||||||
Amortization | (13 | ) | (76 | ) | (6 | ) | (11 | ) | (63 | ) | (7 | ) | (11 | ) | (50 | ) | (7 | ) | ||||||||||||||||||||||||||||||||||||
Balance, end of year | $ | 215 | $ | 793 | $ | 53 | $ | 190 | $ | 715 | $ | 59 | $ | 167 | $ | 612 | $ | 66 | ||||||||||||||||||||||||||||||||||||
The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products and also as a provider of reinsurance for some insurance products issued by NELICO, as well as former affiliated and unaffiliated companies. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth.
Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the aforementioned assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance and evaluates the financial strength of counterparties to its reinsurance agreements using criteria similar to that evaluated in the security impairment process discussed in Note 8.
Annuities and Life
For annuities, the Company reinsures portions of the living and death benefit guarantees issued in connection with certain variable annuities to unaffiliated reinsurers. Under these reinsurance agreements, the Company pays a reinsurance premium generally based on fees associated with the guarantees collected from policyholders and receives reimbursement for benefits paid or accrued in excess of account values, subject to certain limitations. The value of MRBs on the ceded risk is determined using a methodology consistent with the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. The Company also assumes 100% of the living and death benefit guarantees issued in connection with certain variable annuities issued by NELICO. The Company cedes certain fixed rate annuities to unaffiliated third-party reinsurers and assumes certain index-linked annuities from an unaffiliated third-party insurer. These reinsurance arrangements are structured on a coinsurance basis and are reported as deposit accounting.
For its life products, the Company has historically reinsured the mortality risk primarily on an excess of retention basis or on a quota share basis. In addition to reinsuring mortality risk as described above, the Company reinsures other risks, as well as specific coverages. Placement of reinsurance is done primarily on an automatic basis and also on a facultative basis for risks with specified characteristics. On a case-by-case basis, the Company may retain up to $20 million per life and reinsure 100% of amounts in excess of the amount the Company retains. The Company also reinsures 90% of the risk associated with participating whole life policies to a former affiliate and assumes certain term life policies and universal life policies with secondary death benefit guarantees issued by a former affiliate. The Company evaluates its reinsurance programs routinely and may increase or decrease its retention at any time.
Corporate & Other
The Company reinsures, through 100% quota share reinsurance agreements, certain run-off long-term care and workers’ compensation business written by the Company. At December 31, 2025, the Company had $5.5 billion of reinsurance recoverables associated with its reinsured long-term care business. The reinsurer has established trust accounts for the Company’s benefit to secure their obligations under the reinsurance agreements. Additionally, the Company is indemnified for losses and certain other payment obligations it might incur with respect to such reinsured long-term care insurance business.
36
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
7. Reinsurance (continued)
Catastrophe Coverage
The Company has exposure to catastrophes which could contribute to significant fluctuations in the Company’s results of operations. The Company uses excess of retention and quota share reinsurance agreements to provide greater diversification of risk and minimize exposure to larger risks.
Reinsurance Recoverables
The Company reinsures its business through a diversified group of primarily highly rated reinsurers. The Company analyzes recent trends in arbitration and litigation outcomes in disputes, if any, with its reinsurers and monitors ratings and the financial strength of its reinsurers. In addition, the reinsurance recoverable balance due from each reinsurer and the recoverability of such balance is evaluated as part of this overall monitoring process.
The Company generally secures large reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. These reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance, which at both December 31, 2025 and 2024 were not significant. The Company had $6.3 billion and $6.1 billion of unsecured reinsurance recoverable balances with third-party reinsurers at December 31, 2025 and 2024, respectively.
The Company records an allowance for credit losses which is a valuation account that reduces reinsurance recoverable balances to present the net amount expected to be collected from reinsurers. When assessing the creditworthiness of the Company’s reinsurance recoverable balances, beyond the analysis of individual claims disputes, the Company considers the financial strength of its reinsurers using public ratings and ratings reports, current existing credit enhancements to reinsurance agreements and the statutory and GAAP financial statements of the reinsurers. Impairments are then determined based on probable and estimable defaults. The Company had an allowance for credit losses of $3 million on its reinsurance recoverable balances at both December 31, 2025 and 2024.
At December 31, 2025, the Company had $19.6 billion of net ceded reinsurance recoverables with third-party reinsurers. Of this total, $16.4 billion, or 84%, were with the Company’s five largest ceded reinsurers, including $3.8 billion of net ceded reinsurance recoverables which were unsecured. At December 31, 2024, the Company had $19.6 billion of net ceded reinsurance recoverables with third-party reinsurers. Of this total, $16.9 billion, or 86%, were with the Company’s five largest ceded reinsurers, including $4.3 billion of net ceded reinsurance recoverables which were unsecured.
37
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
7. Reinsurance (continued)
The amounts on the consolidated statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows:
Years Ended December 31, | ||||||
2025 | 2024 | 2023 | ||||
(In millions) | ||||||
Premiums |
Direct premiums | $ | 1,235 | $ | 1,367 | $ | 1,458 | ||||
Reinsurance assumed | 18 | 20 | 20 | |||||||
Reinsurance ceded | (571 | ) | (628 | ) | (667 | ) | ||||
Net premiums | $ | 682 | $ | 759 | $ | 811 | ||||
Universal life and investment-type product policy fees |
Direct universal life and investment-type product policy fees | $ | 2,376 | $ | 2,440 | $ | 2,402 | ||||
Reinsurance assumed | 51 | 52 | 48 | |||||||
Reinsurance ceded | (749 | ) | (891 | ) | (672 | ) | ||||
Net universal life and investment-type product policy fees | $ | 1,678 | $ | 1,601 | $ | 1,778 | ||||
Other revenues |
Direct other revenues | $ | 201 | $ | 209 | $ | 202 | |||
Reinsurance assumed | 3 | 4 | 3 | ||||||
Reinsurance ceded | 274 | 286 | 213 | ||||||
Net other revenues | $ | 478 | $ | 499 | $ | 418 | |||
Policyholder benefits and claims |
Direct policyholder benefits and claims | $ | 3,639 | $ | 3,772 | $ | 3,608 | ||||
Reinsurance assumed | 122 | 94 | 123 | |||||||
Reinsurance ceded | (2,011 | ) | (1,727 | ) | (1,313 | ) | ||||
Net policyholder benefits and claims | $ | 1,750 | $ | 2,139 | $ | 2,418 | ||||
Change in market risk benefits |
Direct change in market risk benefits | $ | (252 | ) | $ | (2,597 | ) | $ | (1,436 | ) | |
Reinsurance assumed | (22 | ) | (105 | ) | (92 | ) | ||||
Reinsurance ceded | 13 | 33 | 31 | |||||||
Net change in market risk benefits | $ | (261 | ) | $ | (2,669 | ) | $ | (1,497 | ) | |
Other expenses |
Direct other expenses | $ | 1,601 | $ | 1,572 | $ | 1,625 | ||||
Reinsurance assumed | 11 | 21 | 25 | |||||||
Reinsurance ceded | (3 | ) | 8 | (25 | ) | |||||
Net other expenses | $ | 1,609 | $ | 1,601 | $ | 1,625 | ||||
38
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
7. Reinsurance (continued)
The amounts on the consolidated balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at:
December 31, | |||||||||||||||||||||
2025 | 2024 | ||||||||||||||||||||
Direct | Assumed | Ceded | Total | Direct | Assumed | Ceded | Total | ||||||||||||||
(In millions) | |||||||||||||||||||||
Assets |
Premiums, reinsurance and other receivables | $ | 264 | $ | 29 | $ | 20,945 | $ | 21,238 | $ | 340 | $ | 32 | $ | 20,437 | $ | 20,809 | |||||||
Market risk benefit assets | $ | 1,052 | $ | — | $ | 8 | $ | 1,060 | $ | 1,075 | $ | — | $ | 17 | $ | 1,092 |
Liabilities |
Future policy benefits | $ | 31,511 | $ | 171 | $ | — | $ | 31,682 | $ | 30,925 | $ | 160 | $ | — | $ | 31,085 | |||||||
Policyholder account balances | $ | 83,760 | $ | 3,414 | $ | — | $ | 87,174 | $ | 83,019 | $ | 4,143 | $ | — | $ | 87,162 | |||||||
Market risk benefit liabilities | $ | 7,864 | $ | 215 | $ | — | $ | 8,079 | $ | 8,095 | $ | 251 | $ | — | $ | 8,346 | |||||||
Other policy-related balances | $ | 2,180 | $ | 1,535 | $ | — | $ | 3,715 | $ | 2,109 | $ | 1,568 | $ | — | $ | 3,677 | |||||||
Other liabilities | $ | 6,707 | $ | (5 | ) | $ | 2,183 | $ | 8,885 | $ | 6,774 | $ | 9 | $ | 1,677 | $ | 8,460 |
Reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on reinsurance were $7.9 billion and $8.4 billion at December 31, 2025 and 2024, respectively. The deposit liabilities on reinsurance were $3.3 billion and $3.9 billion at December 31, 2025 and 2024, respectively.
Related Party Reinsurance Transactions
Information regarding the significant effects of assumed reinsurance with NELICO included on the consolidated statements of operations was as follows:
Years Ended December 31, | |||||||||||||
2025 | 2024 | 2023 | |||||||||||
(In millions) | |||||||||||||
Premiums | $ | 9 | $ | 8 | $ | 6 | |||||||
Universal life and investment-type product policy fees | $ | (1 | ) | $ | (1 | ) | $ | (1 | ) | ||||
Other revenues | $ | 1 | $ | 1 | $ | 1 | |||||||
Policyholder benefits and claims | $ | 16 | $ | 14 | $ | 39 | |||||||
Change in market risk benefits | $ | (19 | ) | $ | (112 | ) | $ | (92 | ) | ||||
Other expenses | $ | (11 | ) | $ | (3 | ) | $ | — | |||||
39
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
7. Reinsurance (continued)
Information regarding the significant effects of assumed reinsurance with NELICO included on the consolidated balance sheets was as follows at:
December 31, | |||
2025 | 2024 | ||
(In millions) | |||
Assets |
Premiums, reinsurance and other receivables (net of allowance for credit losses) | $ | 31 | $ | 32 |
Liabilities |
Future policy benefits | $ | 59 | $ | 51 | ||
Market risk benefit liabilities | $ | 201 | $ | 235 | ||
Other policy-related balances | $ | 18 | $ | 14 | ||
Other liabilities | $ | (21 | ) | $ | (16 | ) |
Related party reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. There were no deposit assets on related party reinsurance at both December 31, 2025 and 2024. The deposit liabilities on related party reinsurance were $81 million and $97 million at December 31, 2025 and 2024, respectively.
See Note 1 for a description of the Company’s accounting policies for investments and Note 10 for information about the fair value hierarchy for investments and the related valuation methodologies.
Fixed Maturity Securities Available-For-Sale
Fixed Maturity Securities by Sector
Fixed maturity securities by sector were as follows at:
December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized | Allowance | Gross Unrealized | Estimated | Amortized | Allowance | Gross Unrealized | Estimated | |||||||||||||||||||||||||||||||||||||||||||||||
Cost | Losses | Gains | Losses | Value | Cost | Losses | Gains | Losses | Value | |||||||||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. corporate | $ | 41,030 | $ | 27 | $ | 437 | $ | 3,031 | $ | 38,409 | $ | 40,437 | $ | 47 | $ | 212 | $ | 3,865 | $ | 36,737 | ||||||||||||||||||||||||||||||||||
Foreign corporate | 12,311 | 31 | 145 | 991 | 11,434 | 13,203 | 26 | 53 | 1,468 | 11,762 | ||||||||||||||||||||||||||||||||||||||||||||
RMBS | 8,967 | 3 | 83 | 571 | 8,476 | 8,056 | 4 | 45 | 867 | 7,230 | ||||||||||||||||||||||||||||||||||||||||||||
U.S. government and agency | 6,942 | — | 104 | 601 | 6,445 | 7,112 | — | 39 | 691 | 6,460 | ||||||||||||||||||||||||||||||||||||||||||||
ABS | 6,054 | — | 33 | 56 | 6,031 | 6,348 | — | 33 | 75 | 6,306 | ||||||||||||||||||||||||||||||||||||||||||||
CMBS | 6,009 | 1 | 14 | 222 | 5,800 | 6,702 | 2 | 7 | 415 | 6,292 | ||||||||||||||||||||||||||||||||||||||||||||
State and political subdivision | 3,620 | — | 100 | 297 | 3,423 | 3,671 | — | 78 | 367 | 3,382 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign government | 974 | — | 35 | 67 | 942 | 1,036 | — | 24 | 100 | 960 | ||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 85,907 | $ | 62 | $ | 951 | $ | 5,836 | $ | 80,960 | $ | 86,565 | $ | 79 | $ | 491 | $ | 7,848 | $ | 79,129 | ||||||||||||||||||||||||||||||||||
The Company held non-income producing fixed maturity securities with an estimated fair value of $14 million and $30 million at December 31, 2025 and 2024, respectively.
40
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
8. Investments (continued)
Maturities of Fixed Maturity Securities
The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at December 31, 2025:
Due in One | Due After One | Due After Five | Due After Ten | Structured | Total Fixed | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Amortized cost | $ | 4,873 | $ | 19,360 | $ | 13,015 | $ | 27,629 | $ | 21,030 | $ | 85,907 | |||||||||||||||||
Estimated fair value | $ | 4,848 | $ | 19,128 | $ | 12,647 | $ | 24,030 | $ | 20,307 | $ | 80,960 | |||||||||||||||||
Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity.
Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector
The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at:
December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Less than 12 Months | 12 Months or Greater | ||||||||||||||||||||||||
Estimated | Gross | Estimated | Gross | Estimated | Gross | Estimated | Gross | ||||||||||||||||||||
(Dollars in millions) |
U.S. corporate | $ | 4,126 | $ | 394 | $ | 18,777 | $ | 2,637 | $ | 10,758 | $ | 719 | $ | 17,329 | $ | 3,146 | ||||||||||||
Foreign corporate | 1,380 | 179 | 5,203 | 812 | 3,269 | 351 | 5,502 | 1,117 | ||||||||||||||||||||
RMBS | 822 | 48 | 4,338 | 523 | 1,227 | 82 | 4,624 | 785 | ||||||||||||||||||||
U.S. government and agency | 587 | 10 | 2,229 | 591 | 2,384 | 116 | 1,858 | 575 | ||||||||||||||||||||
ABS | 513 | 2 | 749 | 54 | 717 | 10 | 1,076 | 65 | ||||||||||||||||||||
CMBS | 323 | 3 | 4,227 | 219 | 1,326 | 90 | 4,338 | 325 | ||||||||||||||||||||
State and political subdivision | 251 | 7 | 1,777 | 290 | 871 | 63 | 1,435 | 304 | ||||||||||||||||||||
Foreign government | 54 | 5 | 560 | 62 | 273 | 29 | 433 | 71 | ||||||||||||||||||||
Total fixed maturity securities | $ | 8,056 | $ | 648 | $ | 37,860 | $ | 5,188 | $ | 20,825 | $ | 1,460 | $ | 36,595 | $ | 6,388 | ||||||||||||
Total number of securities in an | 1,313 | 5,035 | 3,356 | 5,195 | ||||||||||||||||||||||||
41
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
8. Investments (continued)
Allowance for Credit Losses for Fixed Maturity Securities
Evaluation and Measurement Methodologies
For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors.
Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in OCI.
Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses).
Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses.
Accrued interest receivables are presented separate from the amortized cost basis of fixed maturity securities. An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income. The accrued interest receivable on fixed maturity securities totaled $663 million and $665 million at December 31, 2025 and 2024, 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”). To determine if the credit deterioration experienced since origination is more than insignificant, both (i) the extent of the credit deterioration and (ii) any rating agency downgrades are evaluated. For securities categorized as PCD assets, the present value of cash flows expected to be collected from the security are compared to the par value of the security. If the present value of cash flows expected to be collected is less than the par value, credit losses are embedded in the purchase price of the PCD asset. In this situation, both an allowance for credit losses and amortized cost gross-up is recorded, limited by the amount that the estimated fair value is less than the grossed-up amortized cost basis. Any difference between the purchase price and the present value of cash flows is amortized or accreted into net investment income over the life of the PCD asset. Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities.
42
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
8. 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 $62 million, relating to 19 securities, at December 31, 2025. Management concluded that for all other fixed maturity securities in an unrealized loss position, the unrealized loss was not due to issuer-specific credit-related factors and as a result was recognized in OCI. Where unrealized losses have not been recognized into income, it is primarily because the securities’ bond issuer(s) are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in estimated fair value is largely due to changes in interest rates and non-issuer specific credit spreads. These issuers continued to make timely principal and interest payments and the estimated fair value is expected to recover as the securities approach maturity.
Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector
The changes in the allowance for credit losses for fixed maturity securities by sector were as follows:
U.S. | Foreign | RMBS | CMBS | Total | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | 15 | $ | — | $ | 4 | $ | 2 | $ | 21 | ||||||||||||||||
Allowance on securities where credit losses were not previously recorded | 29 | 26 | 1 | — | 56 | |||||||||||||||||||||
Reductions for securities sold | — | — | — | — | — | |||||||||||||||||||||
Change in allowance on securities with an allowance recorded in a | 3 | — | (1 | ) | — | 2 | ||||||||||||||||||||
Write-offs charged against allowance (1) | — | — | — | — | — | |||||||||||||||||||||
Balance at December 31, 2024 | 47 | 26 | 4 | 2 | 79 | |||||||||||||||||||||
Allowance on securities where credit losses were not previously recorded | 4 | — | — | — | 4 | |||||||||||||||||||||
Reductions for securities sold | (4 | ) | — | — | (1 | ) | (5 | ) | ||||||||||||||||||
Change in allowance on securities with an allowance recorded in a | 7 | 5 | (1 | ) | — | 11 | ||||||||||||||||||||
Write-offs charged against allowance (1) | (27 | ) | — | — | — | (27 | ) | |||||||||||||||||||
Balance at December 31, 2025 | $ | 27 | $ | 31 | $ | 3 | $ | 1 | $ | 62 | ||||||||||||||||
43
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
8. Investments (continued)
Mortgage Loans
Mortgage Loans by Portfolio Segment
Mortgage loans are summarized as follows at:
December 31, | ||||||||||||||||||
2025 | 2024 | |||||||||||||||||
Carrying | % of | Carrying | % of | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Commercial | $ | 12,319 | 54.2 | % | $ | 13,326 | 57.3 | % | ||||||||||
Agricultural | 4,631 | 20.4 | 4,563 | 19.6 | ||||||||||||||
Residential | 5,976 | 26.3 | 5,543 | 23.8 | ||||||||||||||
Total mortgage loans (1) | 22,926 | 100.9 | 23,432 | 100.7 | ||||||||||||||
Allowance for credit losses | (200 | ) | (0.9 | ) | (178 | ) | (0.7 | ) | ||||||||||
Total mortgage loans, net | $ | 22,726 | 100.0 | % | $ | 23,254 | 100.0 | % | ||||||||||
Allowance for Credit Losses for Mortgage Loans
Evaluation and Measurement Methodologies
The allowance for credit losses is a valuation account that is deducted from the mortgage loan’s amortized cost basis to present the net amount expected to be collected on the mortgage loan. The loan balance, or a portion of the loan balance, is written-off against the allowance when management believes this amount is uncollectible.
Accrued interest receivables are presented separate from the amortized cost basis of mortgage loans. An allowance for credit losses is generally not estimated on an accrued interest receivable, rather when a loan is placed in nonaccrual status the associated accrued interest receivable balance is written off with a corresponding reduction to net investment income. The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $132 million at both December 31, 2025 and 2024.
The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two years is used with an input reversion period of one year.
Mortgage loans are evaluated in each of the three portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity. The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, modifications, foreclosure probable loans, and loans with dissimilar risk characteristics.
Mortgage loans are also evaluated to determine if they qualify as PCD assets. To determine if the credit deterioration experienced since origination is more than insignificant, the extent of credit deterioration is evaluated. All re-performing/modified loan (“RPL”) pools purchased after December 31, 2019 are determined to have been acquired with evidence of more than insignificant credit deterioration since origination and are classified as PCD assets. RPLs are pools of residential mortgage loans acquired at a discount or premium which have both credit and non-credit components.
44
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
8. Investments (continued)
For PCD mortgage loans, the allowance for credit losses is determined using a similar methodology described above, except the loss-rate is determined at the pool level instead of the individual loan level. The initial allowance for credit losses, determined on a collective basis, is then allocated to the individual loans. The initial amortized cost of the loan is grossed-up to reflect the sum of the loan’s purchase price and allowance for credit losses. The difference between the grossed-up amortized cost basis and the par value of the loan is a non-credit discount or premium, which is accreted or amortized into net investment income over the remaining life of the loan. Any subsequent PCD mortgage loan allowance for credit losses is evaluated in a manner similar to the process described above for each of the three portfolio segments.
Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment
The changes in the allowance for credit losses by portfolio segment were as follows:
Commercial | Agricultural | Residential | Total | ||||||||||||||||||
(In millions) | |||||||||||||||||||||
Balance at December 31, 2023 | $ | 69 | $ | 19 | $ | 49 | $ | 137 | |||||||||||||
Current period provision | 50 | 11 | (7 | ) | 54 | ||||||||||||||||
Charge-offs, net of recoveries | (13 | ) | — | — | (13 | ) | |||||||||||||||
Balance at December 31, 2024 | 106 | 30 | 42 | 178 | |||||||||||||||||
Current period provision | 76 | 2 | 4 | 82 | |||||||||||||||||
Charge-offs, net of recoveries | (48 | ) | (12 | ) | — | (60 | ) | ||||||||||||||
Balance at December 31, 2025 | $ | 134 | $ | 20 | $ | 46 | $ | 200 | |||||||||||||
Credit Quality of Mortgage Loans by Portfolio Segment
The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at:
2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
December 31, 2025 | ||||||||||||||||||||||||||||
Commercial mortgage loans | ||||||||||||||||||||||||||||
Loan-to-value ratios: | ||||||||||||||||||||||||||||
Less than 65% | $ | 423 | $ | 668 | $ | 157 | $ | 483 | $ | 1,713 | $ | 2,903 | $ | 6,347 | ||||||||||||||
65% to 75% | 262 | 180 | — | 583 | 651 | 717 | 2,393 | |||||||||||||||||||||
76% to 80% | 9 | — | — | 205 | 287 | 605 | 1,106 | |||||||||||||||||||||
Greater than 80% | 36 | — | — | 661 | 244 | 1,532 | 2,473 | |||||||||||||||||||||
Total commercial mortgage loans | 730 | 848 | 157 | 1,932 | 2,895 | 5,757 | 12,319 | |||||||||||||||||||||
Agricultural mortgage loans | ||||||||||||||||||||||||||||
Loan-to-value ratios: | ||||||||||||||||||||||||||||
Less than 65% | 415 | 341 | 190 | 558 | 1,048 | 1,798 | 4,350 | |||||||||||||||||||||
65% to 75% | 43 | — | 17 | 97 | 100 | 18 | 275 | |||||||||||||||||||||
76% to 80% | — | — | — | — | — | 3 | 3 | |||||||||||||||||||||
Greater than 80% | — | — | — | — | 3 | — | 3 | |||||||||||||||||||||
Total agricultural mortgage loans | 458 | 341 | 207 | 655 | 1,151 | 1,819 | 4,631 | |||||||||||||||||||||
Residential mortgage loans | ||||||||||||||||||||||||||||
Performing | 873 | 622 | 168 | 1,146 | 1,505 | 1,554 | 5,868 | |||||||||||||||||||||
Nonperforming | — | — | — | 45 | 22 | 41 | 108 | |||||||||||||||||||||
Total residential mortgage loans | 873 | 622 | 168 | 1,191 | 1,527 | 1,595 | 5,976 | |||||||||||||||||||||
Total | $ | 2,061 | $ | 1,811 | $ | 532 | $ | 3,778 | $ | 5,573 | $ | 9,171 | $ | 22,926 | ||||||||||||||
45
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
8. Investments (continued)
2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
December 31, 2024 | ||||||||||||||||||||||||||
Commercial mortgage loans | ||||||||||||||||||||||||||
Loan-to-value ratios: | ||||||||||||||||||||||||||
Less than 65% | $ | 640 | $ | 199 | $ | 279 | $ | 1,850 | $ | 196 | $ | 2,844 | $ | 6,008 | ||||||||||||
65% to 75% | 208 | — | 1,022 | 713 | 62 | 1,171 | 3,176 | |||||||||||||||||||
76% to 80% | — | — | 117 | 201 | 174 | 601 | 1,093 | |||||||||||||||||||
Greater than 80% | — | — | 972 | 388 | — | 1,689 | 3,049 | |||||||||||||||||||
Total commercial mortgage loans | 848 | 199 | 2,390 | 3,152 | 432 | 6,305 | 13,326 | |||||||||||||||||||
Agricultural mortgage loans | ||||||||||||||||||||||||||
Loan-to-value ratios: | ||||||||||||||||||||||||||
Less than 65% | 408 | 203 | 594 | 1,073 | 400 | 1,632 | 4,310 | |||||||||||||||||||
65% to 75% | — | 18 | 80 | 113 | 6 | 19 | 236 | |||||||||||||||||||
76% to 80% | — | — | — | — | 1 | — | 1 | |||||||||||||||||||
Greater than 80% | — | — | — | — | — | 16 | 16 | |||||||||||||||||||
Total agricultural mortgage loans | 408 | 221 | 674 | 1,186 | 407 | 1,667 | 4,563 | |||||||||||||||||||
Residential mortgage loans | ||||||||||||||||||||||||||
Performing | 586 | 222 | 1,268 | 1,640 | 146 | 1,563 | 5,425 | |||||||||||||||||||
Nonperforming | 1 | — | 44 | 21 | 1 | 51 | 118 | |||||||||||||||||||
Total residential mortgage loans | 587 | 222 | 1,312 | 1,661 | 147 | 1,614 | 5,543 | |||||||||||||||||||
Total | $ | 1,843 | $ | 642 | $ | 4,376 | $ | 5,999 | $ | 986 | $ | 9,586 | $ | 23,432 | ||||||||||||
The loan-to-value ratio is a measure commonly used to assess the quality of commercial and agricultural mortgage loans. The loan-to-value ratio compares the amount of the loan to the estimated fair value of the underlying property collateralizing the loan and is commonly expressed as a percentage. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. Performing status is a measure commonly used to assess the quality of residential mortgage loans. A loan is considered performing when the borrower makes consistent and timely payments.
The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at:
December 31, |
2025 | 2024 |
Amortized | % of | Amortized | % of | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Debt-service coverage ratios: | ||||||||||||||||||||
Greater than 1.20x | $ | 11,154 | 90.5 | % | $ | 12,029 | 90.3 | % | ||||||||||||
1.00x - 1.20x | 738 | 6.0 | 801 | 6.0 | ||||||||||||||||
Less than 1.00x | 427 | 3.5 | 496 | 3.7 | ||||||||||||||||
Total | $ | 12,319 | 100.0 | % | $ | 13,326 | 100.0 | % | ||||||||||||
The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios less than 1.00 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt-service coverage ratio greater than 1.00 times indicates an excess of net operating income over the debt-service payments.
46
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
8. Investments (continued)
Past Due Mortgage Loans by Portfolio Segment
The Company has a high-quality, well-performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both December 31, 2025 and 2024. Delinquency is defined consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days; and agricultural mortgage loans — 90 days.
The aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at:
December 31, | |||||||||||||||||||||
2025 | 2024 | ||||||||||||||||||||
Commercial | Agricultural | Residential | Total | Commercial | Agricultural | Residential | Total | ||||||||||||||
(In millions) | |||||||||||||||||||||
Current | $ | 12,212 | $ | 4,623 | $ | 5,865 | $ | 22,700 | $ | 13,206 | $ | 4,538 | $ | 5,423 | $ | 23,167 | ||||||||||
30‑59 days past due | 47 | — | 3 | 50 | — | — | 2 | 2 | ||||||||||||||||||
60‑89 days past due | — | — | 31 | 31 | — | — | 36 | 36 | ||||||||||||||||||
90‑179 days past due | 49 | — | 28 | 77 | 21 | 9 | 36 | 66 | ||||||||||||||||||
180+ days past due | 11 | 8 | 49 | 68 | 99 | 16 | 46 | 161 | ||||||||||||||||||
Total | $ | 12,319 | $ | 4,631 | $ | 5,976 | $ | 22,926 | $ | 13,326 | $ | 4,563 | $ | 5,543 | $ | 23,432 | ||||||||||
Mortgage Loans in Nonaccrual Status by Portfolio Segment
Mortgage loans are placed in a nonaccrual status if there are concerns regarding collectability of future payments or the loan is past due, unless the past due loan is well collateralized.
The amortized cost of mortgage loans in a nonaccrual status by portfolio segment was as follows at:
Commercial | Agricultural | Residential (1) | Total | ||||||||||||||||
(In millions) | |||||||||||||||||||
December 31, 2025 | $ | 220 | $ | 5 | $ | 108 | $ | 333 | |||||||||||
December 31, 2024 | $ | 120 | $ | 25 | $ | 118 | $ | 263 | |||||||||||
Current period investment income on mortgage loans in nonaccrual status was $9 million and $6 million for the years ended December 31, 2025 and 2024, respectively.
Modified Mortgage Loans by Portfolio Segment
Under certain circumstances, modifications are granted to mortgage loans. Generally, the types of concessions may include interest rate reduction, term extension, principal forgiveness, or a combination of all three.
The Company did not have a significant amount of commercial mortgage loans modified during the year ended December 31, 2025. The Company had $386 million of commercial mortgage loans modified under a term extension which represented 2% of the carrying value of total mortgage loans at December 31, 2024. The Company did not have a significant amount of agricultural and residential mortgage loans modified during both years ended December 31, 2025 and 2024.
Other Invested Assets
Over 75% of other invested assets is comprised of freestanding derivatives with positive estimated fair values. See Note 9 for information about freestanding derivatives with positive estimated fair values. Other invested assets also includes the Company’s investment in company-owned life insurance, FHLB stock, leveraged leases and tax credit and renewable energy partnerships.
47
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
8. Investments (continued)
Leveraged Leases
The carrying value of leveraged leases was $60 million at both December 31, 2025 and 2024. The allowance for credit losses was less than $1 million at both December 31, 2025 and 2024. Rental receivables are generally due in periodic installments. The payment periods for leveraged leases generally range from one to seven years. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or nonperforming, which is assessed monthly. Nonperforming rental receivables are generally defined as those that are 90 days or more past due. At both December 31, 2025 and 2024, all leveraged leases were performing.
Net Unrealized Investment Gains (Losses)
Unrealized investment gains (losses) on fixed maturity securities, and the effect on future policy benefits that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in accumulated other comprehensive income (loss) (“AOCI”).
The components of net unrealized investment gains (losses), included in AOCI, were as follows at:
Years Ended December 31, | |||||||||||||||
2025 | 2024 | 2023 | |||||||||||||
(In millions) | |||||||||||||||
Fixed maturity securities | $ | (4,885 | ) | $ | (7,357 | ) | $ | (6,023 | ) | ||||||
Derivatives | 219 | 460 | 344 | ||||||||||||
Other | (8 | ) | (7 | ) | (7 | ) | |||||||||
Subtotal | (4,674 | ) | (6,904 | ) | (5,686 | ) | |||||||||
Amounts allocated from: | |||||||||||||||
Future policy benefits | 571 | 977 | 696 | ||||||||||||
Deferred income tax benefit (expense) | 862 | 1,245 | 1,048 | ||||||||||||
Net unrealized investment gains (losses) | $ | (3,241 | ) | $ | (4,682 | ) | $ | (3,942 | ) | ||||||
The changes in net unrealized investment gains (losses) were as follows:
Years Ended December 31, | ||||||||||||
2025 | 2024 | 2023 | ||||||||||
(In millions) | ||||||||||||
Balance at January 1, | $ | (4,682 | ) | $ | (3,942 | ) | $ | (5,545 | ) | |||
Unrealized investment gains (losses) during the year | 2,230 | (1,218 | ) | 2,325 | ||||||||
Unrealized investment gains (losses) relating to: | ||||||||||||
Future policy benefits | (406 | ) | 281 | (296 | ) | |||||||
Deferred income tax benefit (expense) | (383 | ) | 197 | (426 | ) | |||||||
Balance at December 31, | $ | (3,241 | ) | $ | (4,682 | ) | $ | (3,942 | ) | |||
Change in net unrealized investment gains (losses) | $ | 1,441 | $ | (740 | ) | $ | 1,603 | |||||
Concentrations of Credit Risk
There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at both December 31, 2025 and 2024.
48
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
8. Investments (continued)
Securities Lending
Elements of the securities lending program are presented below at:
December 31, | ||||||||
2025 | 2024 | |||||||
(In millions) | ||||||||
Securities on loan: (1) | ||||||||
Amortized cost | $ | 3,550 | $ | 3,582 | ||||
Estimated fair value | $ | 3,141 | $ | 3,127 | ||||
Cash collateral received from counterparties (2) | $ | 3,225 | $ | 3,210 | ||||
Reinvestment portfolio — estimated fair value | $ | 3,352 | $ | 3,217 | ||||
The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at:
December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
Open (1) | 1 Month | 1 to 6 | Total | Open (1) | 1 Month | 1 to 6 | Total | |||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||
U.S. government and agency | $ | 417 | $ | 663 | $ | 1,777 | $ | 2,857 | $ | 490 | $ | 1,467 | $ | 886 | $ | 2,843 | ||||||||||||||||||||||||||
U.S. corporate | 48 | 256 | — | 304 | — | 248 | — | 248 | ||||||||||||||||||||||||||||||||||
Foreign corporate | 15 | 47 | — | 62 | — | 105 | — | 105 | ||||||||||||||||||||||||||||||||||
Foreign government | — | 2 | — | 2 | — | 14 | — | 14 | ||||||||||||||||||||||||||||||||||
Total | $ | 480 | $ | 968 | $ | 1,777 | $ | 3,225 | $ | 490 | $ | 1,834 | $ | 886 | $ | 3,210 | ||||||||||||||||||||||||||
If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized in normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at December 31, 2025 was $466 million, primarily comprised of U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement.
The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including agency RMBS, ABS, U.S. government and agency securities, U.S. and foreign corporate securities, non-agency RMBS and CMBS) with 50% invested in agency RMBS, U.S. government and agency securities and cash and cash equivalents at December 31, 2025. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company.
49
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
8. Investments (continued)
Invested Assets on Deposit, Held in Trust and Pledged as Collateral
Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at:
December 31, | ||||||||
2025 | 2024 | |||||||
(In millions) | ||||||||
Invested assets on deposit (regulatory deposits) (1) | $ | 6,570 | $ | 6,246 | ||||
Invested assets held in trust (reinsurance agreements) (2) | 7,268 | 8,226 | ||||||
Invested assets pledged as collateral (3) | 10,794 | 12,471 | ||||||
Total invested assets on deposit, held in trust and pledged as collateral | $ | 24,632 | $ | 26,943 | ||||
See “— Securities Lending” for information regarding securities on loan. In addition, the Company’s investment in FHLB common stock, which is considered restricted until redeemed by the issuer, was $218 million and $222 million at redemption value at December 31, 2025 and 2024, respectively.
Collectively Significant Equity Method Investments
The Company holds investments in limited partnerships and LLCs consisting of leveraged buy-out funds, private equity funds, joint ventures and other funds. The portion of these investments accounted for under the equity method had a carrying value of $4.7 billion at December 31, 2025. The Company’s maximum exposure to loss related to these equity method investments is the carrying value of these investments plus unfunded commitments of $1.1 billion at December 31, 2025. The Company’s investments in limited partnerships and LLCs are generally of a passive nature in that the Company does not participate in the management of the entities.
As described in Note 1, the Company generally records its share of earnings in its equity method investments using a three-month lag methodology and within net investment income. Aggregate net investment income from these equity method investments exceeded 10% of the Company’s consolidated pre-tax income (loss) for each of the years ended December 31, 2025, 2024 and 2023. This aggregated summarized financial data does not represent the Company’s proportionate share of the assets, liabilities or earnings of such entities.
The aggregated summarized financial data presented below reflects the latest available financial information and is as of and for the years ended December 31, 2025, 2024 and 2023. Aggregate total assets of these entities totaled $822.2 billion and $903.8 billion at December 31, 2025 and 2024, respectively. Aggregate total liabilities of these entities totaled $76.2 billion and $78.5 billion at December 31, 2025 and 2024, respectively. Aggregate net income (loss) of these entities totaled $53.1 billion, $60.1 billion and $24.8 billion for the years ended December 31, 2025, 2024 and 2023, respectively. Aggregate net income (loss) from the underlying entities in which the Company invests is primarily comprised of investment income, including recurring investment income and realized and unrealized investment gains (losses).
50
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
8. Investments (continued)
Variable Interest Entities
A variable interest entity (“VIE”) is a legal entity that does not have sufficient equity at risk to finance its activities or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity.
The Company enters into various arrangements with VIEs in the normal course of business and has invested in legal entities that are VIEs. VIEs are consolidated when it is determined that the Company is the primary beneficiary. A primary beneficiary is the variable interest holder in a VIE with both (i) the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In addition, the evaluation of whether a legal entity is a VIE and if the Company is a primary beneficiary includes a review of the capital structure of the VIE, the related contractual relationships and terms, the nature of the operations and purpose of the VIE, the nature of the VIE interests issued and the Company’s involvement with the entity.
There were no material VIEs for which the Company has concluded that it is the primary beneficiary at either December 31, 2025 or 2024.
The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at:
December 31, | |||||||||||||||||||||
2025 | 2024 | ||||||||||||||||||||
Carrying | Maximum | Carrying | Maximum | ||||||||||||||||||
(In millions) | |||||||||||||||||||||
Fixed maturity securities | $ | 13,020 | $ | 13,614 | $ | 14,248 | $ | 15,330 | |||||||||||||
Limited partnerships and LLCs | 4,275 | 5,231 | 4,223 | 5,265 | |||||||||||||||||
Total | $ | 17,295 | $ | 18,845 | $ | 18,471 | $ | 20,595 | |||||||||||||
The Company’s investments in unconsolidated VIEs are described below.
Fixed Maturity Securities
The Company invests in U.S. corporate bonds, foreign corporate bonds and Structured Securities issued by VIEs. The Company is not obligated to provide any financial or other support to these VIEs, other than the original investment. The Company’s involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer, or investment manager, which are generally viewed as having the power to direct the activities that most significantly impact the economic performance of the VIE, nor does the Company function in any of these roles. The Company does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity; as a result, the Company has determined it is not the primary beneficiary, or consolidator, of the VIE. The Company’s maximum exposure to loss on these fixed maturity securities is limited to the amortized cost of these investments. See “— Fixed Maturity Securities Available-For-Sale” for information on these securities.
Limited Partnerships and LLCs
The Company holds investments in certain limited partnerships and LLCs which are VIEs. These ventures include limited partnerships, LLCs, private equity funds, and, to a lesser extent, tax credit and renewable energy partnerships. The Company is not considered the primary beneficiary, or consolidator, when its involvement takes the form of a limited partner interest and is restricted to a role of a passive investor, as a limited partner’s interest does not provide the Company with any substantive kick-out or participating rights, nor does it provide the Company with the power to direct the activities of the fund. The Company’s maximum exposure to loss on these investments is limited to: (i) the amount invested in debt or equity of the VIE and (ii) commitments to the VIE, as described in Note 15.
51
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
8. Investments (continued)
Net Investment Income
The components of net investment income were as follows:
Years Ended December 31, | |||||||||||||
2025 | 2024 | 2023 | |||||||||||
(In millions) | |||||||||||||
Investment income: | |||||||||||||
Fixed maturity securities | $ | 3,664 | $ | 3,708 | $ | 3,481 | |||||||
Trading securities (1) | 23 | — | — | ||||||||||
Equity securities | 1 | 3 | 2 | ||||||||||
Mortgage loans | 1,023 | 1,000 | 957 | ||||||||||
Policy loans | 48 | 48 | 45 | ||||||||||
Limited partnerships and LLCs (2) | 372 | 357 | 167 | ||||||||||
Cash, cash equivalents and short-term investments | 233 | 225 | 181 | ||||||||||
Other | 110 | 104 | 84 | ||||||||||
Total investment income | 5,474 | 5,445 | 4,917 | ||||||||||
Less: Investment expenses | 335 | 345 | 357 | ||||||||||
Net investment income | $ | 5,139 | $ | 5,100 | $ | 4,560 | |||||||
Net Investment Gains (Losses)
Components of Net Investment Gains (Losses)
The components of net investment gains (losses) were as follows:
Years Ended December 31, | |||||||||||||||
2025 | 2024 | 2023 | |||||||||||||
(In millions) | |||||||||||||||
Fixed maturity securities | $ | (88 | ) | $ | (243 | ) | $ | (214 | ) | ||||||
Equity securities | (1 | ) | (12 | ) | (1 | ) | |||||||||
Mortgage loans | (83 | ) | (55 | ) | (24 | ) | |||||||||
Limited partnerships and LLCs | 2 | (2 | ) | (1 | ) | ||||||||||
Other (1) | 68 | 14 | (2 | ) | |||||||||||
Total net investment gains (losses) (2) | $ | (102 | ) | $ | (298 | ) | $ | (242 | ) | ||||||
52
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
8. Investments (continued)
Sales or Disposals of Fixed Maturity Securities
Investment gains and losses on sales of securities are determined on a specific identification basis. Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows:
Years Ended December 31, | ||||||||||||||
2025 | 2024 | 2023 | ||||||||||||
(In millions) | ||||||||||||||
Proceeds | $ | 1,435 | $ | 3,436 | $ | 2,223 | ||||||||
Gross investment gains | $ | 9 | $ | 20 | $ | 15 | ||||||||
Gross investment losses | (80 | ) | (193 | ) | (206 | ) | ||||||||
Net investment gains (losses) | $ | (71 | ) | $ | (173 | ) | $ | (191 | ) | |||||
Accounting for Derivatives
See Note 1 for a description of the Company’s accounting policies for derivatives and Note 10 for information about the fair value hierarchy for derivatives and the related valuation methodologies.
Derivative Strategies
The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to minimize its exposure to various market risks, including interest rate, foreign currency exchange rate, credit and equity market. The Company has historically managed the risks related to its variable annuity and first generation Shield Annuity contracts on a combined basis. In the third quarter of 2025, the Company completed an initiative that established a standalone hedging program for each product allowing the Company to separately manage the risks related to these two products.
Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”).
Interest Rate Derivatives
The Company uses derivatives to manage its exposure to changes in interest rate risk from its product liabilities and invested assets. The most significant types of derivative instruments used for hedging interest rate risk are as follows:
Interest rate swaps: The Company uses interest rate swaps to manage interest rate risk in both qualified cash flow and non-qualifying hedging relationships. In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount.
Interest rate swaptions: The Company uses interest rate swaptions to manage interest rate risk in non-qualifying hedging relationships. A swaption is an option to enter into a swap with a forward starting effective date. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. Interest rate swaptions are included in interest rate options.
Interest rate forwards: The Company uses interest rate forwards to manage interest rate risk in both qualified cash flow and non-qualifying hedging relationships. An interest rate forward is an agreement between parties to exchange a future settlement amount based on a predetermined notional amount and forward interest rate.
Foreign Currency Exchange Rate Derivatives
Foreign currency swaps: The Company uses foreign currency swaps to convert foreign currency denominated cash flows to U.S. dollars to reduce cash flow fluctuations due to changes in currency exchange rates. Foreign currency swaps are used in cash flow and non-qualifying hedging relationships.
53
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
9. Derivatives (continued)
Foreign currency forwards: The Company uses foreign currency forwards to hedge currency exposure on its invested assets. Foreign currency forwards are used in non-qualifying hedging relationships.
Credit Derivatives
Credit default swaps: The Company uses credit default swaps to create synthetic credit investments to replicate credit exposure that is more economically attractive than what is available in the market or otherwise unavailable (written credit protection). Credit default swaps are used in non-qualifying hedging relationships.
Credit default swaptions: The Company uses credit default swaptions to synthetically create investments that are either more expensive to acquire or otherwise unavailable in the cash markets. Swaptions are used to create callable bonds from replication synthetic asset transaction (“RSAT”) positions. This enhances the income of the RSAT program through earned premiums while not changing the credit profile of the RSATs. Credit default swaptions are used in non-qualifying hedging relationships.
Equity Market Derivatives
The Company uses derivatives to manage its exposure to equity markets from its product liabilities. The most significant types of derivative instruments used for hedging equity market risk are as follows:
Equity total return swaps: The Company uses equity total return swaps in non-qualifying hedge relationships to manage equity risks related to variable and index-linked annuities. Total return swaps are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and a floating rate, calculated by reference to an agreed notional amount.
Equity index options: The Company uses equity index options to manage equity risks related to variable and index-linked annuities in non-qualifying hedging relationships. In an equity index option transaction, the Company enters into contracts to buy or sell the equity index within a limited time at a contracted price. In certain instances, the Company may enter into a combination of transactions to hedge adverse changes in equity indices within a pre-determined range through the purchase and sale of options.
54
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
9. Derivatives (continued)
Primary Risks Managed by Derivatives
The primary underlying risk exposure, gross notional amount and estimated fair value of derivatives, excluding embedded derivatives, held were as follows at:
December 31, | ||||||||||||||||||||||||||||||||||||||
2025 | 2024 | |||||||||||||||||||||||||||||||||||||
Gross | Estimated Fair Value | Gross | Estimated Fair Value | |||||||||||||||||||||||||||||||||||
Primary Underlying Risk Exposure | Amount | Assets | Liabilities | Amount | Assets | Liabilities | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest rate | $ | 500 | $ | — | $ | 4 | $ | 500 | $ | 9 | $ | — | |||||||||||||||||||||||||
Foreign currency swaps | Foreign currency exchange rate | 3,731 | 266 | 84 | 3,778 | 430 | 25 | |||||||||||||||||||||||||||||||
Total qualifying hedges | 4,231 | 266 | 88 | 4,278 | 439 | 25 | ||||||||||||||||||||||||||||||||
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest rate | 18,366 | 152 | 253 | 69,303 | 131 | 444 | |||||||||||||||||||||||||||||||
Interest rate floors | Interest rate | 8,000 | 1 | 48 | 8,000 | 1 | 30 | |||||||||||||||||||||||||||||||
Interest rate caps | Interest rate | 6,100 | 5 | 16 | 7,850 | 14 | 14 | |||||||||||||||||||||||||||||||
Interest rate futures | Interest rate | — | — | — | 171 | — | — | |||||||||||||||||||||||||||||||
Interest rate options | Interest rate | 26,800 | 12 | 444 | 23,060 | 11 | 371 | |||||||||||||||||||||||||||||||
Interest rate forwards | Interest rate | 23,598 | 127 | 1,317 | 16,352 | 121 | 1,876 | |||||||||||||||||||||||||||||||
Foreign currency swaps | Foreign currency exchange rate | 587 | 75 | 4 | 674 | 111 | — | |||||||||||||||||||||||||||||||
Foreign currency forwards | Foreign currency exchange rate | 303 | 1 | — | 304 | 6 | — | |||||||||||||||||||||||||||||||
Credit default swaps — written | Credit | 468 | 11 | — | 780 | 19 | — | |||||||||||||||||||||||||||||||
Equity futures | Equity market | 1,414 | 6 | 4 | 316 | — | 1 | |||||||||||||||||||||||||||||||
Equity index options | Equity market | 69,495 | 4,530 | 1,362 | 39,897 | 1,722 | 1,041 | |||||||||||||||||||||||||||||||
Equity total return swaps | Equity market | 145,209 | 1,585 | 1,698 | 106,301 | 1,543 | 1,446 | |||||||||||||||||||||||||||||||
Total non-designated or non-qualifying derivatives | 300,340 | 6,505 | 5,146 | 273,008 | 3,679 | 5,223 | ||||||||||||||||||||||||||||||||
Total | $ | 304,571 | $ | 6,771 | $ | 5,234 | $ | 277,286 | $ | 4,118 | $ | 5,248 | ||||||||||||||||||||||||||
55
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
9. Derivatives (continued)
The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items reported in net derivative gains (losses) were as follows:
Year Ended December 31, 2025 | ||||||||||||
Net Derivative | Net Derivative | Net Investment | Policyholder | Amount of Gains | ||||||||
(In millions) | ||||||||||||
Derivatives Designated as Hedging |
Cash flow hedges: | |||||||||||||||||
Interest rate | $ | 3 | $ | — | $ | 3 | $ | 4 | $ | (12 | ) | ||||||
Foreign currency exchange rate | — | — | 42 | — | (223 | ) | |||||||||||
Total cash flow hedges | 3 | — | 45 | 4 | (235 | ) | |||||||||||
Derivatives Not Designated or Not |
Interest rate | (181 | ) | — | — | — | — | |||||||||||
Foreign currency exchange rate | (60 | ) | 11 | — | — | — | |||||||||||
Credit | 11 | — | — | — | — | ||||||||||||
Equity market | 1,515 | — | — | — | — | ||||||||||||
Embedded | (3,088 | ) | — | — | — | — | |||||||||||
Total non-qualifying hedges | (1,803 | ) | 11 | — | — | — | |||||||||||
Total | $ | (1,800 | ) | $ | 11 | $ | 45 | $ | 4 | $ | (235 | ) | |||||
Year Ended December 31, 2024 | ||||||||||||
Net Derivative | Net Derivative | Net Investment | Policyholder | Amount of Gains | ||||||||
(In millions) | ||||||||||||
Derivatives Designated as Hedging |
Cash flow hedges: | ||||||||||||||||
Interest rate | $ | 2 | $ | — | $ | 3 | $ | 8 | $ | 9 | ||||||
Foreign currency exchange rate | 13 | (10 | ) | 50 | — | 125 | ||||||||||
Total cash flow hedges | 15 | (10 | ) | 53 | 8 | 134 | ||||||||||
Derivatives Not Designated or Not |
Interest rate | (1,690 | ) | — | — | — | — | ||||||||||
Foreign currency exchange rate | 48 | (9 | ) | — | — | — | ||||||||||
Credit | 14 | — | — | — | — | |||||||||||
Equity market | 1,894 | — | — | — | — | |||||||||||
Embedded | (3,950 | ) | — | — | — | — | ||||||||||
Total non-qualifying hedges | (3,684 | ) | (9 | ) | — | — | — | |||||||||
Total | $ | (3,669 | ) | $ | (19 | ) | $ | 53 | $ | 8 | $ | 134 | ||||
56
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
9. Derivatives (continued)
Year Ended December 31, 2023 | ||||||||||||
Net Derivative | Net Derivative | Net Investment | Policyholder | Amount of Gains | ||||||||
(In millions) | ||||||||||||
Derivatives Designated as Hedging |
Cash flow hedges: | ||||||||||||||||
Interest rate | $ | 1 | $ | — | $ | 3 | $ | — | $ | (1 | ) | |||||
Foreign currency exchange rate | 7 | (8 | ) | 51 | — | (272 | ) | |||||||||
Total cash flow hedges | 8 | (8 | ) | 54 | — | (273 | ) | |||||||||
Derivatives Not Designated or Not |
Interest rate | (384 | ) | — | — | — | — | |||||||||||||
Foreign currency exchange rate | (40 | ) | 2 | — | — | — | |||||||||||||
Credit | 32 | — | — | — | — | ||||||||||||||
Equity market | 570 | — | — | — | — | ||||||||||||||
Embedded | (4,100 | ) | — | — | — | — | |||||||||||||
Total non-qualifying hedges | (3,922 | ) | 2 | — | — | — | |||||||||||||
Total | $ | (3,914 | ) | $ | (6 | ) | $ | 54 | $ | — | $ | (273 | ) | ||||||
At December 31, 2025 and 2024, the Company held no qualified derivatives hedging exposure to future cash flows for forecasted asset purchases.
At December 31, 2025 and 2024, the balance in AOCI associated with cash flow hedges was $219 million and $460 million, respectively.
57
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
9. Derivatives (continued)
Credit Derivatives
In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation.
The estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps were as follows at:
December 31, | ||||||||||||||||||||||||||||||||||||
2025 | 2024 | |||||||||||||||||||||||||||||||||||
Rating Agency Designation of Referenced | Estimated | Maximum | Weighted | Estimated | Maximum | Weighted | ||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||
Aaa/Aa/A | $ | 2 | $ | 94 | 1.8 | $ | 2 | $ | 100 | 2.7 | ||||||||||||||||||||||||||
Baa | 8 | 350 | 5.0 | 7 | 300 | 4.5 | ||||||||||||||||||||||||||||||
Ba | 1 | 24 | 1.0 | 10 | 376 | 4.8 | ||||||||||||||||||||||||||||||
Caa and Lower | — | — | 0.0 | — | 4 | 1.0 | ||||||||||||||||||||||||||||||
Total | $ | 11 | $ | 468 | 4.1 | $ | 19 | $ | 780 | 4.4 | ||||||||||||||||||||||||||
Counterparty Credit Risk
The Company may be exposed to credit-related losses in the event of counterparty nonperformance on derivative instruments. Generally, the credit exposure is the fair value at the reporting date less any collateral received from the counterparty.
The Company manages its credit risk by: (i) entering into derivative transactions with creditworthy counterparties governed by master netting agreements; (ii) trading through regulated exchanges and central clearing counterparties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review.
See Note 10 for a description of the impact of credit risk on the valuation of derivatives.
58
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
9. Derivatives (continued)
The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:
Gross Amounts Not Offset on the | |||||||||||||
Gross Amount | Financial | Collateral | Net Amount | Securities | Net Amount | ||||||||
(In millions) | |||||||||||||
December 31, 2025 |
Derivative assets | $ | 6,568 | $ | (3,861 | ) | $ | (1,374 | ) | $ | 1,333 | $ | (1,330 | ) | $ | 3 | ||
Derivative liabilities | $ | 5,099 | $ | (3,861 | ) | $ | — | $ | 1,238 | $ | (1,238 | ) | $ | — |
December 31, 2024 |
Derivative assets | $ | 4,122 | $ | (3,039 | ) | $ | (524 | ) | $ | 559 | $ | (558 | ) | $ | 1 | ||
Derivative liabilities | $ | 5,353 | $ | (3,039 | ) | $ | — | $ | 2,314 | $ | (2,306 | ) | $ | 8 |
The Company’s collateral arrangements generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the amount owed by that counterparty reaches a minimum transfer amount. Certain of these arrangements also include credit-contingent provisions which permit the party with positive fair value to terminate the derivative at the current fair value or demand immediate full collateralization from the party in a net liability position, in the event that the financial strength or credit rating of the party in a net liability position falls below a certain level.
The aggregate estimated fair values of derivatives in a net liability position containing such credit-contingent provisions and the aggregate estimated fair value of assets posted as collateral for such instruments were as follows at:
December 31, | ||||||
2025 | 2024 | |||||
(In millions) | ||||||
Estimated fair value of derivatives in a net liability position (1) | $ | 1,238 | $ | 2,314 | ||
Estimated fair value of collateral provided (2): | ||||||
Fixed maturity securities | $ | 3,685 | $ | 4,883 | ||
59
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
When developing estimated fair values, the Company considers three broad valuation techniques: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given what is being measured and the availability of sufficient inputs, giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows:
60
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
10. Fair Value (continued)
Recurring Fair Value Measurements
The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented in the tables below. Investments that do not have a readily determinable fair value and are measured at net asset value (or equivalent) as a practical expedient to estimated fair value are excluded from the fair value hierarchy.
December 31, 2025 | ||||||||||
Fair Value Hierarchy | ||||||||||
Level 1 | Level 2 | Level 3 | Total Estimated | |||||||
(In millions) | ||||||||||
Assets |
Fixed maturity securities: | ||||||||||||
U.S. corporate | $ | — | $ | 37,769 | $ | 640 | $ | 38,409 | ||||
Foreign corporate | — | 11,276 | 158 | 11,434 | ||||||||
RMBS | — | 8,452 | 24 | 8,476 | ||||||||
U.S. government and agency | 2,249 | 4,196 | — | 6,445 | ||||||||
ABS | — | 5,786 | 245 | 6,031 | ||||||||
CMBS | — | 5,800 | — | 5,800 | ||||||||
State and political subdivision | — | 3,423 | — | 3,423 | ||||||||
Foreign government | — | 918 | 24 | 942 | ||||||||
Total fixed maturity securities | 2,249 | 77,620 | 1,091 | 80,960 | ||||||||
Trading securities | 87 | 419 | — | 506 | ||||||||
Equity securities | 12 | 5 | 6 | 23 | ||||||||
Short-term investments | 559 | 103 | 6 | 668 | ||||||||
Derivative assets: (1) | ||||||||||||
Interest rate | — | 297 | — | 297 | ||||||||
Foreign currency exchange rate | — | 338 | 4 | 342 | ||||||||
Credit | — | 9 | 2 | 11 | ||||||||
Equity market | 6 | 6,115 | — | 6,121 | ||||||||
Total derivative assets | 6 | 6,759 | 6 | 6,771 | ||||||||
Embedded derivatives on index-linked annuities (2) | — | — | 79 | 79 | ||||||||
Market risk benefit assets | — | — | 1,060 | 1,060 | ||||||||
Separate account assets | 10 | 78,815 | — | 78,825 | ||||||||
Total assets | $ | 2,923 | $ | 163,721 | $ | 2,248 | $ | 168,892 | ||||
Liabilities |
Market risk benefit liabilities | $ | — | $ | — | $ | 8,079 | $ | 8,079 | ||||
Derivative liabilities: (1) | ||||||||||||
Interest rate | — | 2,082 | — | 2,082 | ||||||||
Foreign currency exchange rate | — | 88 | — | 88 | ||||||||
Equity market | 4 | 3,060 | — | 3,064 | ||||||||
Total derivative liabilities | 4 | 5,230 | — | 5,234 | ||||||||
Embedded derivatives on index-linked annuities (2) | — | — | 12,406 | 12,406 | ||||||||
Total liabilities | $ | 4 | $ | 5,230 | $ | 20,485 | $ | 25,719 | ||||
61
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
10. Fair Value (continued)
December 31, 2024 | |||||||||
Fair Value Hierarchy | |||||||||
Level 1 | Level 2 | Level 3 | Total Estimated | ||||||
(In millions) | |||||||||
Assets |
Fixed maturity securities: | ||||||||||||
U.S. corporate | $ | — | $ | 36,041 | $ | 696 | $ | 36,737 | ||||
Foreign corporate | — | 11,366 | 396 | 11,762 | ||||||||
RMBS | — | 7,213 | 17 | 7,230 | ||||||||
U.S. government and agency | 2,514 | 3,946 | — | 6,460 | ||||||||
ABS | — | 5,984 | 322 | 6,306 | ||||||||
CMBS | — | 6,266 | 26 | 6,292 | ||||||||
State and political subdivision | — | 3,382 | — | 3,382 | ||||||||
Foreign government | — | 939 | 21 | 960 | ||||||||
Total fixed maturity securities | 2,514 | 75,137 | 1,478 | 79,129 | ||||||||
Trading securities | — | — | — | — | ||||||||
Equity securities | 11 | 6 | 15 | 32 | ||||||||
Short-term investments | 916 | 239 | 2 | 1,157 | ||||||||
Derivative assets: (1) | ||||||||||||
Interest rate | — | 287 | — | 287 | ||||||||
Foreign currency exchange rate | — | 540 | 7 | 547 | ||||||||
Credit | — | 17 | 2 | 19 | ||||||||
Equity market | — | 3,265 | — | 3,265 | ||||||||
Total derivative assets | — | 4,109 | 9 | 4,118 | ||||||||
Embedded derivatives on index-linked annuities (2) | — | — | 47 | 47 | ||||||||
Market risk benefit assets | — | — | 1,092 | 1,092 | ||||||||
Separate account assets | 3 | 79,003 | — | 79,006 | ||||||||
Total assets | $ | 3,444 | $ | 158,494 | $ | 2,643 | $ | 164,581 | ||||
Liabilities |
Market risk benefit liabilities | $ | — | $ | — | $ | 8,346 | $ | 8,346 | ||||
Derivative liabilities: (1) | ||||||||||||
Interest rate | — | 2,735 | — | 2,735 | ||||||||
Foreign currency exchange rate | — | 25 | — | 25 | ||||||||
Equity market | 1 | 2,487 | — | 2,488 | ||||||||
Total derivative liabilities | 1 | 5,247 | — | 5,248 | ||||||||
Embedded derivatives on index-linked annuities (2) | — | — | 11,540 | 11,540 | ||||||||
Total liabilities | $ | 1 | $ | 5,247 | $ | 19,886 | $ | 25,134 | ||||
62
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
10. Fair Value (continued)
Valuation Controls and Procedures
The Company monitors and provides oversight of valuation controls and policies for securities, mortgage loans and derivatives, which are primarily executed by its valuation service providers. The valuation methodologies used to determine fair values prioritize the use of observable market prices and market-based parameters and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. The valuation methodologies for securities, mortgage loans and derivatives are reviewed on an ongoing basis and revised when necessary. In addition, the Chief Accounting Officer periodically reports to the Audit Committee of BHF’s Board of Directors regarding compliance with fair value accounting standards.
The fair value of financial assets and financial liabilities is based on quoted market prices, where available. Prices received are assessed to determine if they represent a reasonable estimate of fair value. Several controls are performed, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. Independent non-binding broker quotes, also referred to herein as “consensus pricing,” are used for a non-significant portion of the portfolio. Prices received from independent brokers are assessed to determine if they represent a reasonable estimate of fair value by considering such pricing relative to the current market dynamics and current pricing for similar financial instruments.
A formal process is also applied to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained. If obtaining an independent non-binding broker quotation is unsuccessful, the last available price will be used.
Additional controls are performed, such as balance sheet analytics to assess reasonableness of period-to-period pricing changes, including any price adjustments. Price adjustments are applied if prices or quotes received from independent pricing services or brokers are not considered reflective of market activity or representative of estimated fair value. The Company did not have significant price adjustments during the year ended December 31, 2025.
Determination of Fair Value
Fixed Maturity Securities
The fair values for actively traded marketable bonds designated as available-for-sale or trading securities, primarily U.S. government and agency securities, are determined using the quoted market prices and are classified as Level 1 assets. For securities classified as Level 2 assets, fair values are determined using either a market or income approach and are valued based on a variety of observable inputs as described below.
U.S. corporate and foreign corporate securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark yields, spreads off benchmark yields, new issuances, issuer rating, trades of identical or comparable securities, or duration. Privately-placed securities are valued using the additional key inputs: market yield curve, call provisions, observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer, and delta spread adjustments to reflect specific credit-related issues.
U.S. government and agency, state and political subdivision and foreign government securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark U.S. Treasury yield or other yields, spread off the U.S. Treasury yield curve for the identical security, issuer ratings and issuer spreads, broker-dealer quotes, and comparable securities that are actively traded.
63
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
10. Fair Value (continued)
Structured Securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, ratings, geographic region, weighted average coupon and weighted average maturity, average delinquency rates and debt-service coverage ratios. Other issuance-specific information is also used, including, but not limited to, collateral type, structure of the security, vintage of the loans, payment terms of the underlying asset, payment priority within tranche, and deal performance.
Equity Securities and Short-term Investments
The fair value for actively traded equity securities and short-term investments are determined using quoted market prices and are classified as Level 1 assets. For financial instruments classified as Level 2 assets, fair values are determined using a market approach and are valued based on a variety of observable inputs as described below.
Equity securities and short-term investments: Fair value is determined using third-party commercial pricing services, with the primary input being quoted prices in markets that are not active.
Derivatives
The fair values for exchange-traded derivatives are determined using the quoted market prices and are classified as Level 1 assets or liabilities. For OTC-bilateral derivatives and OTC-cleared derivatives classified as Level 2 assets or liabilities, fair values are determined using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models which are based on market standard valuation methodologies and a variety of observable inputs.
The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments.
Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income.
The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period.
Market Risk Benefits
MRBs principally include guaranteed minimum benefits on variable annuity contracts including benefits reinsured related to these guarantees.
64
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
10. Fair Value (continued)
The estimated fair value of variable annuity guarantees accounted for as MRBs is determined based on the present value of projected future benefits less the present value of projected future fees attributable to the guarantees. At policy inception, the Company determines an attributed fee ratio by solving for a percentage of projected future rider fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. To the extent the rider fees are insufficient, the Company may also include fees related to mortality and expense charges in the attributed fee ratio, provided the total fees included in the calculation do not exceed total contract fees and assessments collected from the contract holder. Any additional fees not included in the attributed fee ratio are considered revenue and reported in universal life and investment-type product policy fees. The attributed fee ratio is not updated in subsequent periods.
The Company updates the estimated fair value of variable annuity guarantees in subsequent periods by projecting future benefits using capital markets inputs and actuarial assumptions including expectations of policyholder behavior. A risk neutral valuation methodology is used to project the cash flows from the guarantees under multiple capital markets scenarios. The reported estimated fair value is then determined by taking the present value of these cash flows using a discount rate that incorporates a spread over the risk-free rate to reflect the Company’s nonperformance risk and adding a risk margin.
The valuation of MRBs includes an adjustment for the risk that the Company fails to satisfy its obligations, which is referred to as nonperformance risk. The nonperformance risk adjustment is captured as an additional spread applied to the risk-free rate in determining the rate to discount the cash flows of the liability. The spread over the risk-free rate is based on the Company’s creditworthiness taking into consideration publicly available information relating to spreads in the secondary market for Brighthouse Financial’s debt. These observable spreads are then adjusted, as necessary, to reflect the financial strength ratings of the issuing insurance subsidiaries as compared to the credit rating of Brighthouse Financial.
Risk margins are established to capture the non-capital markets risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties in certain actuarial assumptions. The establishment of risk margins requires the use of significant actuarial judgment, including assumptions of the amount needed to cover the guarantees.
Actuarial assumptions are reviewed at least annually, and if they change significantly, the estimated fair value is adjusted through net income. Capital market inputs used in the measurement of variable annuity guarantees are updated quarterly through net income, except for the change attributable to the Company’s nonperformance risk, which is reported in OCI.
Embedded Derivatives
Embedded derivatives include crediting rates associated with index-linked annuity contracts. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income.
The crediting rates associated with these features are embedded derivatives which are measured at estimated fair value separately from the host fixed annuity contract. These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets.
The estimated fair value of crediting rates associated with index-linked annuities is determined using a combination of an option pricing model and an option-budget approach. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk.
Actuarial assumptions including policyholder behavior and expectations for renewals at the end of the term period are reviewed at least annually, and if they change significantly, the estimated fair value is adjusted through net income. Capital market inputs used in the measurement of crediting rate embedded derivatives are updated quarterly through net income.
65
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
10. Fair Value (continued)
Transfers Into or Out of Level 3:
Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable.
Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)
Certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows at:
December 31, 2025 | December 31, 2024 | Impact of | |||||||||||||||||||||
Valuation | Significant | Range | Range | on Estimated Fair | |||||||||||||||||||
Market Risk Benefits | |||||||||||||||||||||||
Variable annuity guaranteed minimum | • Discounted | ||||||||||||||||||||||
benefits | cash flows | • Mortality rates | 0.04% - 12.90% | 0.04% - 12.90% | Decrease (1) | ||||||||||||||||||
• Lapse rates | 1.00% - 15.90% | 1.00% - 20.20% | Decrease (2) | ||||||||||||||||||||
• Utilization rates | 0.00% - 25.00% | 0.00% - 25.00% | Increase (3) | ||||||||||||||||||||
• Withdrawal rates | 0.00% - 10.00% | 0.00% - 10.00% | (4) | ||||||||||||||||||||
• Long-term equity | |||||||||||||||||||||||
volatilities | 11.56% - 33.62% | 12.22% - 37.04% | Increase (5) | ||||||||||||||||||||
• Nonperformance | |||||||||||||||||||||||
risk spread | 0.45% - 1.02% | 0.20% - 1.19% | Decrease (6) | ||||||||||||||||||||
Embedded Derivatives | |||||||||||||||||||||||
Registered index-linked annuity crediting rates | • Option pricing | ||||||||||||||||||||||
techniques | • Mortality rates | 0.03% - 7.86% | 0.03% - 7.86% | Decrease (1) | |||||||||||||||||||
• Lapse rates | 0.40% - 75.00% | 1.00% - 62.30% | Decrease (2) | ||||||||||||||||||||
• Withdrawal rates | 0.50% - 14.90% | 0.50% - 13.00% | (4) | ||||||||||||||||||||
• Nonperformance | |||||||||||||||||||||||
risk spread | 0.37% - 1.80% | 0.30% - 1.63% | Decrease (6) | ||||||||||||||||||||
66
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
10. Fair Value (continued)
The Company does not develop unobservable inputs used in measuring fair value for all other assets and liabilities classified within Level 3; therefore, these are not included in the table above. The other Level 3 assets and liabilities primarily included fixed maturity securities and derivatives. For fixed maturity securities valued based on non-binding broker quotes, an increase (decrease) in credit spreads would result in a (lower) higher fair value. For derivatives valued based on third-party pricing models, an increase (decrease) in credit spreads would generally result in a (lower) higher fair value.
67
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
10. Fair Value (continued)
The changes in assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (excluding MRBs disclosed in Note 4) were summarized as follows:
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturity Securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Embedded | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | Derivatives on | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Structured | Foreign | Equity | Short-term | Derivatives | Index-Linked | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate (1) | Securities | Government | Securities | Investments | (2) | Annuities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2024 | $ | 1,320 | $ | 380 | $ | 36 | $ | 25 | $ | — | $ | 18 | $ | (8,186 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized/unrealized gains (losses) included in net | (67 | ) | 1 | — | (10 | ) | — | 1 | (3,951 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized/unrealized gains (losses) included in | 2 | 3 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases (5) | 323 | 137 | — | — | 2 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales (5) | (239 | ) | (87 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances (5) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements (5) | — | — | — | — | — | (4 | ) | 644 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (6) | 53 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (6) | (300 | ) | (69 | ) | (15 | ) | — | — | (6 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2024 | 1,092 | 365 | 21 | 15 | 2 | 9 | (11,493 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized/unrealized gains (losses) included in net | (13 | ) | 3 | — | (1 | ) | — | (1 | ) | (3,090 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized/unrealized gains (losses) included in | 20 | (7 | ) | 3 | — | — | (1 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases (5) | 292 | 78 | — | — | 6 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales (5) | (235 | ) | (109 | ) | — | (8 | ) | (2 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances (5) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements (5) | — | — | — | — | — | — | 2,256 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (6) | 4 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (6) | (362 | ) | (61 | ) | — | — | — | (1 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2025 | $ | 798 | $ | 269 | $ | 24 | $ | 6 | $ | 6 | $ | 6 | $ | (12,327 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) included in net | $ | (11 | ) | $ | — | $ | — | $ | (2 | ) | $ | — | $ | (5 | ) | $ | (4,513 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) included in net | $ | (59 | ) | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | (4,687 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) included in net | $ | (9 | ) | $ | — | $ | — | $ | — | $ | — | $ | (1 | ) | $ | (4,282 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) included in OCI | $ | 11 | $ | 4 | $ | 3 | $ | — | $ | — | $ | (3 | ) | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) included in OCI | $ | (33 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) included in OCI | $ | 17 | $ | (7 | ) | $ | 3 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains (Losses) Data for the year ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized/unrealized gains (losses) included in net | $ | (11 | ) | $ | — | $ | — | $ | (3 | ) | $ | — | $ | (6 | ) | $ | (4,097 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized/unrealized gains (losses) included in | $ | 28 | $ | 5 | $ | 3 | $ | — | $ | — | $ | (3 | ) | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
68
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
10. Fair Value (continued)
Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).
Fair Value of Financial Instruments Carried at Other Than Fair Value
The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income and payables for collateral under securities loaned and other transactions. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2, approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the tables below are not considered financial instruments subject to this disclosure.
The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:
December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Estimated | |||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Mortgage loans | $ | 22,726 | $ | — | $ | — | $ | 21,705 | $ | 21,705 | |||||||||||||||||||||||||||||||
Policy loans | $ | 1,047 | $ | — | $ | 512 | $ | 560 | $ | 1,072 | |||||||||||||||||||||||||||||||
Other invested assets | $ | 231 | $ | — | $ | 217 | $ | 14 | $ | 231 | |||||||||||||||||||||||||||||||
Premiums, reinsurance and other receivables | $ | 7,978 | $ | — | $ | 87 | $ | 7,943 | $ | 8,030 | |||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||
Policyholder account balances | $ | 28,701 | $ | — | $ | — | $ | 28,644 | $ | 28,644 | |||||||||||||||||||||||||||||||
Long-term debt | $ | 832 | $ | — | $ | 21 | $ | 747 | $ | 768 | |||||||||||||||||||||||||||||||
Other liabilities | $ | 1,249 | $ | — | $ | 583 | $ | 666 | $ | 1,249 | |||||||||||||||||||||||||||||||
Separate account liabilities | $ | 1,260 | $ | — | $ | 1,260 | $ | — | $ | 1,260 | |||||||||||||||||||||||||||||||
69
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
10. Fair Value (continued)
December 31, 2024 | |||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||
Total | |||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Estimated | |||||||||||||||||
(In millions) | |||||||||||||||||||||
Assets | ||||||||||||||
Mortgage loans | $ | 23,254 | $ | — | $ | — | $ | 21,343 | $ | 21,343 | ||||
Policy loans | $ | 1,626 | $ | — | $ | 1,123 | $ | 523 | $ | 1,646 | ||||
Other invested assets | $ | 237 | $ | — | $ | 222 | $ | 15 | $ | 237 | ||||
Premiums, reinsurance and other receivables | $ | 8,394 | $ | — | $ | 43 | $ | 9,102 | $ | 9,145 | ||||
Liabilities | ||||||||||||||
Policyholder account balances | $ | 31,830 | $ | — | $ | — | $ | 31,467 | $ | 31,467 | ||||
Long-term debt | $ | 833 | $ | — | $ | 23 | $ | 762 | $ | 785 | ||||
Other liabilities | $ | 1,360 | $ | — | $ | 648 | $ | 712 | $ | 1,360 | ||||
Separate account liabilities | $ | 1,244 | $ | — | $ | 1,244 | $ | — | $ | 1,244 | ||||
11. Long-term and Short-term Debt
Long-term debt outstanding was as follows at:
December 31, | |||||||||||||||||||||||
Stated Interest Rate | Maturity | 2025 | 2024 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Surplus note — affiliated (1) | 8.070% | 2059 | $ | 412 | $ | 412 | |||||||||||||||||
Surplus note — affiliated (1) | 8.150% | 2058 | 200 | 200 | |||||||||||||||||||
Surplus note — affiliated (1) | 7.800% | 2058 | 200 | 200 | |||||||||||||||||||
Other long-term debt — unaffiliated (2) | 7.028% | 2030 | 20 | 21 | |||||||||||||||||||
Total long-term debt | $ | 832 | $ | 833 | |||||||||||||||||||
The aggregate maturities of long-term debt at December 31, 2025 were $3 million in each of 2026, 2027 and 2028, $4 million in each of 2029 and 2030, and $815 million thereafter.
Interest expense related to long-term and short-term debt of $67 million, $67 million and $70 million for the years ended December 31, 2025, 2024 and 2023, respectively, is included in other expenses, of which $65 million, $65 million and $68 million, respectively, was associated with affiliated debt.
Intercompany Liquidity Facilities
BHF has established an intercompany liquidity facility with certain of its insurance and non-insurance subsidiaries to provide short-term liquidity within and across the combined group of companies. Under the facility, which is comprised of a series of revolving loan agreements among BHF and its participating subsidiaries, each company may lend to or borrow from each other, subject to certain maximum limits for a term of up to 364 days, depending on the agreement.
70
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
11. Long-term and Short-term Debt (continued)
On February 16, 2023, BH Holdings issued a $125 million promissory note to Brighthouse Life Insurance Company which bore interest at a fixed rate of 5.9966%, and Brighthouse Life Insurance Company of NY (“BHNY”) issued a $125 million promissory note to BH Holdings which bore interest at a fixed rate of 5.9937% (the “2023 Promissory Notes”). On March 28, 2023, BHNY repaid to BH Holdings, and BH Holdings repaid to Brighthouse Life Insurance Company, each $50 million of principal plus accrued interest in cash on the respective 2023 Promissory Notes. Upon maturity on May 16, 2023, the 2023 Promissory Notes were replaced by two new $75 million promissory notes that bore interest at a fixed rate of 6.4433% and 6.2918%, respectively, and were both repaid on June 30, 2023.
Committed Facilities
Reinsurance Financing Arrangement
Brighthouse Reinsurance Company of Delaware (“BRCD”) maintains a $15.0 billion financing arrangement with a pool of highly rated third-party reinsurers consisting of credit-linked notes that each mature in 2039. At December 31, 2025, there were no borrowings and there was $15.0 billion of funding available under this financing arrangement. For the years ended December 31, 2025, 2024 and 2023, the Company recognized commitment fees of $22 million, $21 million and $21 million, respectively, in other expenses associated with this financing arrangement.
Repurchase Facilities
At December 31, 2025, Brighthouse Life Insurance Company maintains secured committed repurchase facilities (the “Repurchase Facilities”) with terms of up to three years under which Brighthouse Life Insurance Company may enter into repurchase transactions in an aggregate amount up to $2.5 billion. Under the Repurchase Facilities, Brighthouse Life Insurance Company may sell certain eligible securities at a purchase price based on the market value of the securities less an applicable margin based on the types of securities sold, with a concurrent agreement to repurchase such securities at a predetermined future date (up to three months) and at a price which represents the original purchase price plus interest. At December 31, 2025, there were no borrowings under the Repurchase Facilities.
Capital Transactions
During the year ended December 31, 2025, the Company received a cash capital contribution of $100 million from BH Holdings. The Company did not receive any capital contributions from BH Holdings for the years ended December 31, 2024 and 2023.
Statutory Financial Information
The states of domicile of Brighthouse Life Insurance Company and BHNY impose RBC requirements that were developed by the National Association of Insurance Commissioners (“NAIC”). Such requirements are used by regulators to assess the minimum amount of statutory capital and surplus needed for an insurance company to support its operations, based on its size and risk profile (referred to as “company action level RBC”). RBC is based on statutory financial statements and is calculated in a manner prescribed by the NAIC. The RBC ratio, which is the basis for determining regulatory compliance, is equal to total adjusted capital divided by the applicable company action level RBC. Companies below 100% of their company action level RBC are subject to corrective action. As of December 31, 2025, the annual RBC ratios for Brighthouse Life Insurance Company and BHNY were each in excess of 400%.
Brighthouse Life Insurance Company and BHNY prepare statutory-basis financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of the state of domicile.
Statutory accounting principles differ from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions, reporting of reinsurance agreements and valuing investments and deferred tax assets on a different basis.
71
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
12. Equity (continued)
The tables below present amounts from Brighthouse Life Insurance Company and BHNY, which are derived from the statutory-basis financial statements to be filed with the insurance regulators.
Statutory net income (loss) was as follows:
Years Ended December 31, | |||||||||||||||||||
Company | State of Domicile | 2025 | 2024 | 2023 | |||||||||||||||
(In millions) | |||||||||||||||||||
Brighthouse Life Insurance Company | Delaware | $ | (2,330 | ) | $ | (787 | ) | $ | (3,131 | ) | |||||||||
Brighthouse Life Insurance Company of NY | New York | $ | 110 | $ | (120 | ) | $ | 539 | |||||||||||
Statutory capital and surplus was as follows at:
December 31, | ||||||||
Company | 2025 | 2024 | ||||||
(In millions) | ||||||||
Brighthouse Life Insurance Company | $ | 3,600 | $ | 3,673 | ||||
Brighthouse Life Insurance Company of NY | $ | 785 | $ | 699 | ||||
The Company has a reinsurance subsidiary, BRCD, which reinsures risks including level premium term life and ULSG assumed from other Brighthouse Financial life insurance subsidiaries. BRCD, with the explicit permission of the Delaware Insurance Commissioner (“Delaware Commissioner”), has included the value of credit-linked notes as admitted assets, which resulted in higher statutory capital and surplus of $11.5 billion at both December 31, 2025 and 2024.
The statutory net income (loss) of BRCD was ($120) million, ($447) million and ($300) million for the years ended December 31, 2025, 2024 and 2023, respectively, and the combined statutory capital and surplus, including the aforementioned prescribed practices, were $678 million and $703 million at December 31, 2025 and 2024, respectively.
Dividend Restrictions
The table below sets forth the dividends permitted to be paid by Brighthouse Life Insurance Company and BHNY without insurance regulatory approval and dividends paid:
2026 | 2025 | 2024 | 2023 | ||||||||||||||||||||
Company | Permitted | Paid (2) | Paid (2) | Paid (2) | |||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Brighthouse Life Insurance Company (3) | $ | — | $ | — | $ | — | $ | 266 | |||||||||||||||
Brighthouse Life Insurance Company of NY | $ | 78 | $ | — | $ | — | $ | — | |||||||||||||||
72
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
12. Equity (continued)
Under the Delaware Insurance Law, Brighthouse Life Insurance Company is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend as long as the amount of the dividend when aggregated with all other dividends in the preceding 12 months does not exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its net gain from operations for the immediately preceding calendar year (excluding realized capital gains), not including pro rata distributions of Brighthouse Life Insurance Company’s own securities. Brighthouse Life Insurance Company will be permitted to pay a stockholder dividend in excess of the greater of such two amounts only if it files notice of the declaration of such a dividend and the amount thereof with the Delaware Commissioner and the Delaware Commissioner either approves the distribution of the dividend or does not disapprove the distribution within 30 days of its filing. In addition, any dividend that exceeds earned surplus (defined as “unassigned funds (surplus)”) as of the immediately preceding calendar year requires insurance regulatory approval. Under the Delaware Insurance Law, the Delaware Commissioner has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders.
Under New York insurance laws, BHNY is permitted, without prior insurance regulatory clearance, to pay stockholder dividends to its parent in any calendar year based on one of two standards. Under one standard, BHNY is permitted, without prior insurance regulatory clearance, to pay dividends out of earned surplus (defined as positive “unassigned funds (surplus),” excluding 85% of the change in net unrealized capital gains or losses (less capital gains tax), for the immediately preceding calendar year), in an amount up to the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains), not to exceed 30% of surplus to policyholders as of the end of the immediately preceding calendar year. In addition, under this standard, BHNY may not, without prior insurance regulatory clearance, pay any dividends in any calendar year immediately following a calendar year for which its net gain from operations, excluding realized capital gains, was negative. Under the second standard, if dividends are paid from a source other than earned surplus, BHNY may, without prior insurance regulatory clearance, pay an amount up to the lesser of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains). In addition, BHNY will be permitted to pay a dividend to its parent in excess of the amounts allowed under both standards only if it files notice of its intention to declare such a dividend and the amount thereof with the New York Superintendent of Financial Services (the “NY Superintendent”), and the NY Superintendent either approves the distribution of the dividend or does not disapprove the dividend within 30 days of its filing. To the extent BHNY pays a stockholder dividend, such dividend will be paid to Brighthouse Life Insurance Company, its direct parent and sole stockholder.
Under BRCD’s plan of operations, no dividend or distribution may be made by BRCD without the prior approval of the Delaware Commissioner. BRCD did not pay any extraordinary dividends during the years ended December 31, 2025, 2024 and 2023. During each of the years ended December 31, 2025, 2024 and 2023, BRCD paid cash dividends of $1 million to its preferred shareholders.
73
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
12. Equity (continued)
Accumulated Other Comprehensive Income (Loss)
Information regarding changes in the balances of each component of AOCI was as follows:
Unrealized | Unrealized | Changes in | Changes in | Foreign | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | (6,041 | ) | $ | 496 | $ | (1,377 | ) | $ | 1,016 | $ | (25 | ) | $ | (5,931 | ) | ||||||||||||||
OCI before reclassifications | 2,109 | (273 | ) | (637 | ) | (376 | ) | 18 | 841 | |||||||||||||||||||||
Deferred income tax benefit (expense) (2) | (443 | ) | 58 | 134 | 79 | (4 | ) | (176 | ) | |||||||||||||||||||||
AOCI before reclassifications, net of income | (4,375 | ) | 281 | (1,880 | ) | 719 | (11 | ) | (5,266 | ) | ||||||||||||||||||||
Amounts reclassified from AOCI | 204 | (11 | ) | — | — | — | 193 | |||||||||||||||||||||||
Deferred income tax benefit (expense) (2) | (43 | ) | 2 | — | — | — | (41 | ) | ||||||||||||||||||||||
Amounts reclassified from AOCI, net of | 161 | (9 | ) | — | — | — | 152 | |||||||||||||||||||||||
Balance at December 31, 2023 | (4,214 | ) | 272 | (1,880 | ) | 719 | (11 | ) | (5,114 | ) | ||||||||||||||||||||
OCI before reclassifications | (1,241 | ) | 134 | 352 | 541 | (18 | ) | (232 | ) | |||||||||||||||||||||
Deferred income tax benefit (expense) (2) | 260 | (28 | ) | (74 | ) | (114 | ) | 4 | 48 | |||||||||||||||||||||
AOCI before reclassifications, net of income | (5,195 | ) | 378 | (1,602 | ) | 1,146 | (25 | ) | (5,298 | ) | ||||||||||||||||||||
Amounts reclassified from AOCI | 188 | (18 | ) | — | — | — | 170 | |||||||||||||||||||||||
Deferred income tax benefit (expense) (2) | (39 | ) | 4 | — | — | — | (35 | ) | ||||||||||||||||||||||
Amounts reclassified from AOCI, net of | 149 | (14 | ) | — | — | — | 135 | |||||||||||||||||||||||
Balance at December 31, 2024 | (5,046 | ) | 364 | (1,602 | ) | 1,146 | (25 | ) | (5,163 | ) | ||||||||||||||||||||
OCI before reclassifications | 1,995 | (235 | ) | 440 | (330 | ) | 43 | 1,913 | ||||||||||||||||||||||
Deferred income tax benefit (expense) (2) | (418 | ) | 49 | (93 | ) | 69 | (9 | ) | (402 | ) | ||||||||||||||||||||
AOCI before reclassifications, net of income | (3,469 | ) | 178 | (1,255 | ) | 885 | 9 | (3,652 | ) | |||||||||||||||||||||
Amounts reclassified from AOCI | 70 | (6 | ) | — | — | — | 64 | |||||||||||||||||||||||
Deferred income tax benefit (expense) (2) | (15 | ) | 1 | — | — | — | (14 | ) | ||||||||||||||||||||||
Amounts reclassified from AOCI, net of | 55 | (5 | ) | — | — | — | 50 | |||||||||||||||||||||||
Balance at December 31, 2025 | $ | (3,414 | ) | $ | 173 | $ | (1,255 | ) | $ | 885 | $ | 9 | $ | (3,602 | ) | |||||||||||||||
74
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
12. Equity (continued)
Information regarding amounts reclassified out of each component of AOCI was as follows:
AOCI Components | Amounts Reclassified from AOCI | Consolidated Statements of | |||||||||||||||
Years Ended December 31, | |||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||
(In millions) | |||||||||||||||||
Net unrealized investment gains (losses): | |||||||||||||||||
Net unrealized investment gains (losses) | $ | (70 | ) | $ | (173 | ) | $ | (192 | ) | Net investment gains (losses) | |||||||
Net unrealized investment gains (losses) | — | (15 | ) | (12 | ) | Net derivative gains (losses) | |||||||||||
Net unrealized investment gains (losses), before | (70 | ) | (188 | ) | (204 | ) | |||||||||||
Income tax (expense) benefit | 15 | 39 | 43 | ||||||||||||||
Net unrealized investment gains (losses), net of | (55 | ) | (149 | ) | (161 | ) | |||||||||||
Unrealized gains (losses) on derivatives — cash | |||||||||||||||||
Interest rate swaps | 3 | 2 | 1 | Net derivative gains (losses) | |||||||||||||
Interest rate swaps | 3 | 3 | 3 | Net investment income | |||||||||||||
Foreign currency swaps | — | 13 | 7 | Net derivative gains (losses) | |||||||||||||
Gains (losses) on cash flow hedges, before | 6 | 18 | 11 | ||||||||||||||
Income tax (expense) benefit | (1 | ) | (4 | ) | (2 | ) | |||||||||||
Gains (losses) on cash flow hedges, net of | 5 | 14 | 9 | ||||||||||||||
Total reclassifications, net of income tax | $ | (50 | ) | $ | (135 | ) | $ | (152 | ) | ||||||||
13. Other Revenues and Other Expenses
Other Revenues
The Company has entered into contracts with mutual funds, fund managers, and their affiliates (collectively, the “Funds”) whereby the Company is paid monthly or quarterly fees (“12b‑1 fees”) for providing certain services to customers and distributors of the Funds. The 12b‑1 fees, which are included in other revenues, are generally equal to a fixed percentage of the average daily balance of the customer’s investment in a fund. The percentage is specified in the contract between the Company and the Funds. Payments are generally collected when due and are neither refundable nor able to offset future fees.
To earn these fees, the Company performs services such as responding to phone inquiries, maintaining records, providing information to distributors and shareholders about fund performance and providing training to account managers and sales agents. The passage of time reflects the satisfaction of the Company’s performance obligations to the Funds and is used to recognize revenue associated with 12b‑1 fees.
Other revenues included 12b‑1 fees of $200 million, $205 million and $199 million for the years ended December 31, 2025, 2024 and 2023, respectively, of which substantially all were reported in the Annuities segment.
75
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
13. Other Revenues and Other Expenses (continued)
Other Expenses
Information on other expenses was as follows:
Years Ended December 31, | ||||||||||
2025 | 2024 | 2023 | ||||||||
(In millions) | ||||||||||
Compensation | $ | 418 | $ | 379 | $ | 383 | ||||
Contracted services and other labor costs | 259 | 261 | 282 | |||||||
Transition services agreements | 14 | 20 | 30 | |||||||
Premium and other taxes, licenses and fees | 48 | 55 | 55 | |||||||
Volume related costs, excluding compensation, net of DAC capitalization | 560 | 568 | 536 | |||||||
Interest expense on debt | 67 | 67 | 70 | |||||||
Other | 243 | 251 | 269 | |||||||
Total other expenses | $ | 1,609 | $ | 1,601 | $ | 1,625 | ||||
Capitalization of DAC
See Note 6 for additional information on the capitalization of DAC.
Interest Expense on Debt
See Note 11 for attribution of interest expense by debt issuance.
Related Party Expenses
See Note 16 for a discussion of related party expenses included in the table above.
The provision for income tax was as follows:
Years Ended December 31, | |||||||||||||||
2025 | 2024 | 2023 | |||||||||||||
(In millions) | |||||||||||||||
Current: | |||||||||||||||
Federal | $ | (48 | ) | $ | (39 | ) | $ | (5 | ) | ||||||
State and local | 2 | — | — | ||||||||||||
Subtotal | (46 | ) | (39 | ) | (5 | ) | |||||||||
Deferred: | |||||||||||||||
Federal | 19 | 24 | (378 | ) | |||||||||||
Provision for income tax expense (benefit) | $ | (27 | ) | $ | (15 | ) | $ | (383 | ) | ||||||
76
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
14. Income Tax (continued)
The reconciliation of the income tax provision at the statutory tax rate to the provision for income tax as reported was as follows:
Years Ended December 31, | |||||||||||||||||||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||||
Federal statutory tax rate | $ | 56 | 21 | % | $ | 51 | 21 | % | $ | (316 | ) | 21 | % | ||||||||||||||||||||
State and local income taxes, net of federal income tax | 2 | 1 | % | — | — | % | — | — | % | ||||||||||||||||||||||||
Tax credits | |||||||||||||||||||||||||||||||||
Foreign tax credits | (31 | ) | (12 | )% | (26 | ) | (11 | )% | (2 | ) | — | % | |||||||||||||||||||||
General business tax credits | — | — | % | — | — | % | (7 | ) | 1 | % | |||||||||||||||||||||||
Change in valuation allowance | — | — | % | — | — | % | (18 | ) | 1 | % | |||||||||||||||||||||||
Nontaxable or nondeductible items | |||||||||||||||||||||||||||||||||
Dividends received deduction | (32 | ) | (12 | )% | (37 | ) | (14 | )% | (36 | ) | 2 | % | |||||||||||||||||||||
Tax advantaged investment income | (10 | ) | (3 | )% | (7 | ) | (3 | )% | (4 | ) | — | % | |||||||||||||||||||||
Other | — | — | % | 1 | — | % | — | — | % | ||||||||||||||||||||||||
Change in unrecognized tax benefits | (2 | ) | (1 | )% | (12 | ) | (5 | )% | — | — | % | ||||||||||||||||||||||
Other reconciling items | |||||||||||||||||||||||||||||||||
Adjustments to deferred tax | (10 | ) | (4 | )% | 14 | 6 | % | — | — | % | |||||||||||||||||||||||
Other | — | — | % | 1 | — | % | — | — | % | ||||||||||||||||||||||||
Effective tax rate | $ | (27 | ) | (10 | )% | $ | (15 | ) | (6 | )% | $ | (383 | ) | 25 | % | ||||||||||||||||||
The income taxes paid (net of refunds) by jurisdiction for the years ended December 31, 2025, 2024, and 2023, as reported in the Consolidated Statements of Cash Flows, was as follows:
Years Ended December 31, | ||||||||||||||
2025 | 2024 | 2023 | ||||||||||||
Jurisdiction | (In millions) | |||||||||||||
U.S. Federal | $ | (38 | ) | $ | (2 | ) | $ | — | ||||||
Florida | 2 | 1 | — | |||||||||||
Other Jurisdictions (1) | 1 | 1 | — | |||||||||||
Total | $ | (35 | ) | $ | — | $ | — | |||||||
77
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
14. Income Tax (continued)
Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at:
December 31, | ||||||||||
2025 | 2024 | |||||||||
(In millions) | ||||||||||
Deferred income tax assets: | ||||||||||
Net unrealized investment losses | $ | 862 | $ | 1,245 | ||||||
Net operating loss carryforwards | 2,342 | 2,003 | ||||||||
Investments, including derivatives | 492 | 145 | ||||||||
Tax credit carryforwards | 160 | 188 | ||||||||
Employee benefits | 2 | 2 | ||||||||
Intangibles | 32 | 41 | ||||||||
Other | — | 4 | ||||||||
Total deferred income tax assets | 3,890 | 3,628 | ||||||||
Less: Valuation allowance | — | — | ||||||||
Total net deferred income tax assets | 3,890 | 3,628 | ||||||||
Deferred income tax liabilities: | ||||||||||
Policyholder liabilities and receivables | 1,921 | 1,224 | ||||||||
DAC | 575 | 581 | ||||||||
Other | 5 | — | ||||||||
Total deferred income tax liabilities | 2,501 | 1,805 | ||||||||
Net deferred income tax asset (liability) | $ | 1,389 | $ | 1,823 | ||||||
The following table sets forth the net operating loss carryforwards for tax purposes at December 31, 2025.
Net Operating Loss | ||||
(In millions) | ||||
Expiration | ||||
2032 | $ | 1,938 | ||
Indefinite | 9,214 | |||
$ | 11,152 | |||
78
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
14. Income Tax (continued)
The following table sets forth the general business credits and foreign tax credits available for carryforward for tax purposes at December 31, 2025.
Tax Credit Carryforwards | |||||||||||||
General Business | Foreign Tax Credits | ||||||||||||
(In millions) | |||||||||||||
Expiration | |||||||||||||
2028‑2032 | $ | — | $ | 121 | |||||||||
2033‑2037 | 16 | 14 | |||||||||||
2038‑2042 | 9 | — | |||||||||||
$ | 25 | $ | 135 | ||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:
Years Ended December 31, | |||||||||||||||
2025 | 2024 | 2023 | |||||||||||||
(In millions) | |||||||||||||||
Balance at January 1, | $ | 2 | $ | 14 | $ | 14 | |||||||||
Additions for tax positions of prior years | — | — | — | ||||||||||||
Reductions for tax positions of prior years | — | — | — | ||||||||||||
Additions for tax positions of current year | — | — | — | ||||||||||||
Reductions for tax positions of current year | (2 | ) | — | — | |||||||||||
Settlements with tax authorities | — | — | — | ||||||||||||
Lapses of statutes of limitations | — | (12 | ) | — | |||||||||||
Balance at December 31, | $ | — | $ | 2 | $ | 14 | |||||||||
Unrecognized tax benefits that, if recognized would impact the effective rate | $ | — | $ | 2 | $ | 14 | |||||||||
The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included in other expenses, while penalties are included in income tax expense. Interest related to unrecognized tax benefits was not significant. The Company had no penalties for each of the years ended December 31, 2025, 2024 and 2023.
The Company is subject to examination by the Internal Revenue Service and other tax authorities in jurisdictions in which the Company has significant business operations. The income tax years under examination vary by jurisdiction and subsidiary. The Company is no longer subject to federal, state or local income tax examinations for years prior to 2017.
Management believes it has established adequate tax liabilities, and final resolution of any examinations for the years 2017 and forward and any pending issues are not expected to have a material impact on the Company’s consolidated financial statements.
Tax Sharing Agreements
For the periods prior to the Separation, the Company filed a consolidated federal income tax return with MetLife, Inc. and its insurance and non-insurance subsidiaries. Current taxes (and the benefits of tax attributes such as losses) are allocated to the Company, and its includable subsidiaries, under a tax sharing agreement with MetLife, Inc. This tax sharing agreement states that federal taxes are computed on a modified separate return basis with benefits for losses.
For periods after the Separation through the year ended December 31, 2022, Brighthouse Life Insurance Company, BHNY and BRCD entered into a tax sharing agreement to join a consolidated federal income tax return. The tax sharing agreement states that federal taxes are computed on a modified separate return basis with benefit for losses. The non-insurance subsidiaries of the Company filed their own federal income tax returns.
79
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
14. Income Tax (continued)
For periods beginning with the year ended December 31, 2023, Brighthouse Life Insurance Company, BHNY and BRCD file a consolidated federal income tax return with Brighthouse Financial, Inc. and certain of its subsidiaries. In furtherance thereof, such parties joined a single tax sharing agreement, pursuant to which federal taxes are computed on a modified separate return basis with benefits for losses.
Income Tax Transactions with Former Parent
The Company entered into a tax separation agreement with MetLife (the “Tax Separation Agreement”). Among other things, the Tax Separation Agreement governs the allocation between MetLife and the Company of the responsibility for the taxes of the MetLife group. The Tax Separation Agreement also allocates rights, obligations and responsibilities in connection with certain administrative matters relating to the preparation of tax returns and control of tax audits and other proceedings relating to taxes. For the years ended December 31, 2025, 2024 and 2023, no payments were made by MetLife or Brighthouse Financial under the Tax Separation Agreement. At December 31, 2025 and 2024, there was a current income tax receivable of $18 million and $17 million, respectively, related to this agreement.
15. Contingencies, Commitments and Guarantees
Contingencies
Litigation
The Company is a defendant in a number of litigation matters. In some of the matters, large or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value.
The Company also receives and responds to subpoenas or other inquiries seeking a broad range of information from various state and federal regulators, agencies and officials. The issues involved in information requests and regulatory matters vary widely and can include inquiries or investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. The Company cooperates in these inquiries.
Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law.
The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at December 31, 2025.
Matters as to Which an Estimate Can Be Made
For some loss contingency matters, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. In addition to amounts accrued for probable and reasonably estimable losses, as of December 31, 2025, the Company estimates the aggregate range of reasonably possible losses to be up to approximately $10 million.
80
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
15. Contingencies, Commitments and Guarantees (continued)
Matters as to Which an Estimate Cannot Be Made
For other matters, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews.
Sales Practices Claims
Over the past several years, the Company has faced claims and regulatory inquiries and investigations, alleging improper marketing or sales of individual life insurance policies, annuities or other products. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters.
Cost of Insurance Class Actions
Richard A. Newton v. Brighthouse Life Insurance Company (U.S. District Court, Northern District of Georgia, Atlanta Division, filed May 8, 2020). Plaintiff filed a purported class action lawsuit against Brighthouse Life Insurance Company. Plaintiff was the owner of a universal life (“UL”) insurance policy issued by Travelers Insurance Company, a predecessor to Brighthouse Life Insurance Company. Plaintiff sought to certify a class of all persons who own or owned life insurance policies issued where the terms of the life insurance policy provide or provided, among other things, a guarantee that the COI rates would not be increased by more than a specified percentage in any contract year. Plaintiff also alleges that COI charges were based on improper factors and should have decreased over time due to improving mortality. Plaintiff’s complaint alleges, among other things, causes of action for breach of contract, fraud, suppression and concealment, and violation of the Georgia Racketeer Influenced and Corrupt Organizations Act. Plaintiff seeks to recover damages, including punitive damages, interest and treble damages, attorneys’ fees, and injunctive and declaratory relief. Brighthouse Life Insurance Company filed a motion to dismiss in June 2020, which was granted in part and denied in part in March 2021. Plaintiff was granted leave to amend the complaint. On January 18, 2023, plaintiff filed a motion on consent to amend the second amended class action complaint to narrow the scope of the class sought to those who own or owned policies issued in Georgia. The motion was granted on January 23, 2023, and the third amended class action complaint was filed on January 23, 2023. On September 5, 2025, the court granted in part plaintiff’s motion for class certification, certifying a class of all persons, who as of May 8, 2015, owned a UL policy issued in Georgia by Brighthouse Life Insurance Company or its predecessors-in-interest on Forms ULXP86 and ULXP88, and who were subject to at least one monthly deduction. On October 31, 2025, the court issued an amended order changing the date as to class certification for breach of contract claims to March 14, 2014 and for Georgia Racketeer Influenced and Corrupt Organizations Act claims to March 14, 2015. The Company intends to vigorously defend this matter.
Lawrence Martin v. Brighthouse Life Insurance Company (U.S. District Court, Southern District of New York, filed April 6, 2021). Plaintiff filed a purported class action lawsuit against Brighthouse Life Insurance Company. Plaintiff is the owner of a UL insurance policy issued by Travelers Insurance Company, a predecessor to Brighthouse Life Insurance Company. Plaintiff sought to certify a class of similarly situated owners of UL insurance policies issued or administered by defendants and alleges that COI charges were based on improper factors and should have decreased over time due to improving mortality. Plaintiff’s complaint alleges, among other things, causes of action for breach of contract, breach of the covenant of good faith and fair dealing, and unjust enrichment. Plaintiff seeks to recover compensatory damages, attorneys’ fees, interest, and equitable relief including a constructive trust. Brighthouse Life Insurance Company filed a motion to dismiss in June 2021, which was denied in February 2022. On September 25, 2025, the court granted in part plaintiff’s motion for class certification, certifying as to plaintiff’s breach of contract claim based on the alleged failure to decrease COI rates, a nationwide class of owners of UL policies with the product codes ULX or ULXP that contains the language: “We will base these rates only on our future outlook for mortality and expenses.” On October 9, 2025, plaintiff filed a petition for permission to appeal to the United States Court of Appeals for the Second Circuit. On February 11, 2026, the United States Court of Appeals for the Second Circuit denied plaintiff’s petition. The Company intends to vigorously defend this matter.
81
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
15. Contingencies, Commitments and Guarantees (continued)
MOVEit Data Security Incident Litigation
Kennedy v. Progress Software Corporation, et al. (U.S. District Court, District of Massachusetts, filed October 3, 2023). BHF has been named as a defendant in a purported class action lawsuit. The action relates to a data security incident at an alleged third-party vendor, PBI Research Services (“PBI”), and allegedly involves the MOVEit file transfer system that PBI uses in its provision of services (“MOVEit Incident”). As it relates to BHF, plaintiff seeks to certify a subclass of persons whose private information was allegedly maintained by BHF and accessed or acquired in relation to the MOVEit Incident. Plaintiff alleges, among other things, that BHF negligently chose to utilize PBI to store and transfer plaintiff’s and purported class members’ private information despite PBI’s use of the MOVEit software which plaintiff contends contained security vulnerabilities. The complaint asserts claims against BHF for negligence, negligence per se, and unjust enrichment, and plaintiff seeks declaratory and injunctive relief, damages, attorneys’ fees and prejudgment interest. The court dismissed claims for injunctive relief against BHF, but denied the remainder of a motion to dismiss based on plaintiff’s lack of standing. BHF intends to vigorously defend this matter.
Summary
Various litigations, claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, investor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations.
It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, large or indeterminate amounts, including punitive and treble damages, are sought. Although, in light of these considerations, it is possible that an adverse outcome in certain cases could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods.
Other Loss Contingencies
As with litigation and regulatory loss contingencies, the Company considers establishing liabilities for loss contingencies associated with disputes or other matters involving third parties, including counterparties to contractual arrangements entered into by the Company (e.g., third-party vendors and reinsurers), as well as with tax or other authorities (“other loss contingencies”). The Company establishes liabilities for such other loss contingencies when it is probable that a loss will be incurred and the amount of the loss can be reasonably estimated. In matters where it is not probable, but is reasonably possible that a loss will be incurred and the amount of loss can be reasonably estimated, such losses or range of losses are disclosed, and no accrual is made. In the absence of sufficient information to support an assessment of the reasonably possible loss or range of loss, no accrual is made and no loss or range of loss is disclosed. On a quarterly basis, the Company reviews relevant information with respect to other loss contingencies and, when applicable, updates its accruals, disclosures and estimates of reasonably possible losses or estimated ranges of loss based on such reviews.
The Company’s tax-related matters have involved disputes with taxing authorities, ongoing audits, evaluation of filing positions and any potential assessments related thereto. In the matters where the Company’s subsidiaries are acting as the reinsured or the reinsurer, such reinsurance matters have involved assertions by third parties primarily related to rates, fees or reinsured benefit calculations, and certain of such reinsurance matters have resulted in arbitration. As of December 31, 2025, the Company estimates the range of reasonably possible losses in excess of the amounts accrued for certain other loss contingencies to be from zero up to approximately $15 million relating to a certain reinsurance matter, as described above. For certain 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.
82
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
15. Contingencies, Commitments and Guarantees (continued)
Commitments
Mortgage Loan Commitments
The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $436 million and $271 million at December 31, 2025 and 2024, respectively.
Commitments to Fund Partnership Investments, and Private Corporate Bond Investments
The Company commits to fund partnership investments and to lend funds under private corporate bond investments. The amounts of these unfunded commitments were $1.4 billion and $1.7 billion at December 31, 2025 and 2024, respectively.
Guarantees
In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of reinsurance, acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation with a cumulative maximum of $83 million, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments.
In addition, the Company indemnifies its directors and officers as provided in its charters and bylaws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future.
The Company did not have any liabilities recorded for indemnities, guarantees and commitments at both December 31, 2025 and 2024.
16. Related Party Transactions
The Company has various existing arrangements with its Brighthouse Financial affiliates including related party reinsurance, debt and equity transactions (see Notes 7, 11 and 12). Other material arrangements between the Company and its related parties not disclosed elsewhere are as follows:
Shared Services and Overhead Allocations
The Company has entered into various agreements with affiliates regarding the provision of certain services, which include, but are not limited to, treasury, financial planning and analysis, legal, human resources, tax planning, internal audit, financial reporting and information technology. When specific identification to a particular legal entity and/or product is not practicable, an allocation methodology based on various performance measures or activity-based costing, such as sales, new policies/contracts issued, reserves, and in-force policy counts is used. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual incidence of cost incurred by the Company and/or affiliate. Management believes that the methods used to allocate expenses under these arrangements are reasonable. Revenues received from an affiliate related to these agreements, recorded in universal life and investment-type product policy fees, were $168 million, $177 million and $175 million for the years ended December 31, 2025, 2024 and 2023, respectively. Costs incurred under these arrangements were $893 million, $891 million and $935 million for the years ended December 31, 2025, 2024 and 2023, respectively, and were recorded in other expenses.
The Company had net receivables from/(payables to) affiliates, related to the items discussed above, of ($68) million and ($71) million at December 31, 2025 and 2024, respectively.
83
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Notes to the Consolidated Financial Statements (continued)
16. Related Party Transactions (continued)
Broker-Dealer Transactions
The related party expense for the Company was commissions paid on the sale of variable products and passed through to the broker-dealer affiliate. The related party revenue for the Company was fee income passed through the broker-dealer affiliate from trusts and mutual funds whose shares serve as investment options of policyholders of the Company. Fee income received related to these transactions and recorded in other revenues was $167 million, $174 million and $169 million for the years ended December 31, 2025, 2024 and 2023, respectively. Commission expenses incurred related to these transactions and recorded in other expenses was $958 million, $930 million and $887 million for the years ended December 31, 2025, 2024 and 2023, respectively. The Company also had related party fee income receivables of $14 million and $15 million at December 31, 2025 and 2024, respectively.
84
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Schedule I
Consolidated Summary of Investments —
Other Than Investments in Related Parties
December 31, 2025
(In millions)
Types of Investments | Cost or | Estimated Fair | Amount at | ||||||||||||
Fixed maturity securities: | |||||||||||||||
Bonds: | |||||||||||||||
U.S. government and agency | $ | 6,942 | $ | 6,445 | $ | 6,445 | |||||||||
State and political subdivision | 3,620 | 3,423 | 3,423 | ||||||||||||
Public utilities | 3,888 | 3,560 | 3,560 | ||||||||||||
Foreign government | 974 | 942 | 942 | ||||||||||||
All other corporate bonds | 49,319 | 46,147 | 46,147 | ||||||||||||
Total bonds | 64,743 | 60,517 | 60,517 | ||||||||||||
Mortgage-backed and asset-backed securities | 21,030 | 20,307 | 20,307 | ||||||||||||
Redeemable preferred stock | 134 | 136 | 136 | ||||||||||||
Total fixed maturity securities | 85,907 | 80,960 | 80,960 | ||||||||||||
Trading securities | 512 | 506 | 506 | ||||||||||||
Equity securities: | |||||||||||||||
Non-redeemable preferred stock | 18 | 10 | 10 | ||||||||||||
Common stock: | |||||||||||||||
Industrial, miscellaneous and all other | 9 | 11 | 11 | ||||||||||||
Public utilities | — | 2 | 2 | ||||||||||||
Total equity securities | 27 | 23 | 23 | ||||||||||||
Mortgage loans | 22,726 | 22,726 | |||||||||||||
Policy loans | 1,047 | 1,047 | |||||||||||||
Limited partnerships and LLCs | 4,696 | 4,696 | |||||||||||||
Short-term investments | 668 | 668 | |||||||||||||
Other invested assets | 7,932 | 7,932 | |||||||||||||
Total investments | $ | 123,515 | $ | 118,558 | |||||||||||
85
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Schedule II
Condensed Financial Information
(Parent Company Only)
December 31, 2025 and 2024
(In millions, except share and per share data)
2025 | 2024 |
Condensed Balance Sheets |
Assets |
Investments: | ||||||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $71,076 and $72,741, | $ | 67,301 | $ | 66,860 | ||
Trading securities, at estimated fair value | 506 | — | ||||
Equity securities, at estimated fair value | 18 | 27 | ||||
Mortgage loans (net of allowance for credit losses of $191 and $172, respectively) | 21,584 | 22,089 | ||||
Policy loans | 1,047 | 1,625 | ||||
Limited partnerships and limited liability companies | 4,105 | 4,288 | ||||
Short-term investments, principally at estimated fair value | 339 | 1,120 | ||||
Investment in subsidiaries | 2,422 | 2,046 | ||||
Other invested assets, principally at estimated fair value | 14,030 | 10,387 | ||||
Total investments | 111,352 | 108,442 | ||||
Cash and cash equivalents | 4,439 | 3,856 | ||||
Accrued investment income | 1,112 | 1,139 | ||||
Premiums, reinsurance and other receivables (net of allowance for credit losses of $3 and $3, respectively) | 20,754 | 20,298 | ||||
Receivable from subsidiaries | 11,039 | 11,558 | ||||
Deferred policy acquisition costs and value of business acquired | 3,973 | 3,958 | ||||
Current income tax recoverable | 83 | 26 | ||||
Deferred income tax receivable | 2,923 | 3,299 | ||||
Market risk benefits assets | 963 | 993 | ||||
Other assets | 263 | 293 | ||||
Separate account assets | 74,767 | 74,966 | ||||
Total assets | $ | 231,668 | $ | 228,828 | ||
Liabilities and Stockholder’s Equity |
Liabilities |
Future policy benefits | $ | 31,389 | $ | 31,126 | ||
Policyholder account balances | 85,958 | 85,968 | ||||
Market risk benefits liabilities | 7,937 | 8,181 | ||||
Other policy-related balances | 3,753 | 3,827 | ||||
Payables for collateral under securities loaned and other transactions | 4,642 | 3,762 | ||||
Long-term debt | 812 | 812 | ||||
Other liabilities | 14,327 | 14,053 | ||||
Separate account liabilities | 74,767 | 74,966 | ||||
Total liabilities | 223,585 | 222,695 | ||||
Stockholder’s Equity |
Common stock, par value $25,000 per share; 4,000 shares authorized; 3,000 shares issued and outstanding | 75 | 75 | |||||
Additional paid-in capital | 17,607 | 17,507 | |||||
Retained earnings (deficit) | (5,997 | ) | (6,286 | ) | |||
Accumulated other comprehensive income (loss) | (3,602 | ) | (5,163 | ) | |||
Total stockholder’s equity | 8,083 | 6,133 | |||||
Total liabilities and stockholder’s equity | $ | 231,668 | $ | 228,828 | |||
See accompanying notes to the condensed financial information.
86
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Schedule II
Condensed Financial Information (continued)
(Parent Company Only)
For the Years Ended December 31, 2025, 2024 and 2023
(In millions)
2025 | 2024 | 2023 |
Condensed Statements of Operations |
Revenues |
Premiums | $ | 527 | $ | 577 | $ | 599 | ||||
Universal life and investment-type product policy fees | 1,487 | 1,378 | 1,527 | |||||||
Net investment income | 4,410 | 4,431 | 3,992 | |||||||
Other revenues | 768 | 755 | 519 | |||||||
Net investment gains (losses) | (151 | ) | (287 | ) | (234 | ) | ||||
Net derivative gains (losses) | (1,598 | ) | (3,066 | ) | (3,616 | ) | ||||
Total revenues | 5,443 | 3,788 | 2,787 | |||||||
Expenses |
Policyholder benefits and claims (including remeasurement gains (losses) of ($53), ($366), | 1,525 | 1,635 | 1,692 | |||||||
Interest credited to policyholder account balances | 2,054 | 1,989 | 1,641 | |||||||
Amortization of deferred policy acquisition costs and value of business acquired | 505 | 485 | 499 | |||||||
Change in market risk benefits | (252 | ) | (2,665 | ) | (1,494 | ) | ||||
Other expenses | 1,846 | 1,886 | 1,817 | |||||||
Total expenses | 5,678 | 3,330 | 4,155 | |||||||
Income (loss) before provision for income tax and equity in earnings (losses) of subsidiaries | (235 | ) | 458 | (1,368 | ) | |||||
Provision for income tax expense (benefit) | (111 | ) | 41 | (347 | ) | |||||
Income (loss) before equity in earnings (losses) of subsidiaries | (124 | ) | 417 | (1,021 | ) | |||||
Equity in earnings (losses) of subsidiaries | 413 | (161 | ) | (103 | ) | |||||
Net income (loss) attributable to Brighthouse Life Insurance Company | $ | 289 | $ | 256 | $ | (1,124 | ) | |||
Comprehensive income (loss) | $ | 1,850 | $ | 207 | $ | (307 | ) | |||
See accompanying notes to the condensed financial information.
87
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Schedule II
Condensed Financial Information (continued)
(Parent Company Only)
For the Years Ended December 31, 2025, 2024 and 2023
(In millions)
2025 | 2024 | 2023 |
Condensed Statements of Cash Flows |
Net cash provided by (used in) operating activities | $ | 451 | $ | 240 | $ | 238 |
Cash flows from investing activities |
Sales, maturities and repayments of: | |||||||
Fixed maturity securities | 11,304 | 10,717 | 5,561 | ||||
Trading securities | 44 | — | — | ||||
Equity securities | 17 | 25 | 18 | ||||
Mortgage loans | 2,499 | 1,441 | 1,180 | ||||
Limited partnerships and limited liability companies | 484 | 325 | 197 | ||||
Purchases of: | |||||||
Fixed maturity securities | (9,820 | ) | (10,280 | ) | (7,587 | ) | |
Trading securities | (199 | ) | — | — | |||
Equity securities | (2 | ) | (2 | ) | (3 | ) | |
Mortgage loans | (2,141 | ) | (2,347 | ) | (775 | ) | |
Limited partnerships and limited liability companies | (275 | ) | (293 | ) | (449 | ) | |
Cash received in connection with freestanding derivatives | 16,754 | 12,416 | 4,505 | ||||
Cash paid in connection with freestanding derivatives | (18,208 | ) | (11,794 | ) | (5,207 | ) | |
Receipts on loans to affiliate | — | — | 125 | ||||
Returns of capital and dividends from subsidiaries | 79 | 19 | 25 | ||||
Net change in policy loans | 578 | (688 | ) | (40 | ) | ||
Net change in short-term investments | 797 | (523 | ) | (261 | ) | ||
Net change in other invested assets | (922 | ) | (1,380 | ) | (4,530 | ) | |
Net cash provided by (used in) investing activities | 989 | (2,364 | ) | (7,241 | ) | ||
Cash flows from financing activities |
Policyholder account balances: | ||||||||||
Deposits | 19,415 | 29,602 | 24,917 | |||||||
Withdrawals | (20,793 | ) | (26,235 | ) | (17,305 | ) | ||||
Net change in payables for collateral under securities loaned and other transactions | 880 | 146 | (737 | ) | ||||||
Dividends paid to parent | — | — | (266 | ) | ||||||
Capital contributions | 100 | — | — | |||||||
Financing element on certain derivative instruments and other derivative related transactions, net | (459 | ) | (215 | ) | (26 | ) | ||||
Net cash provided by (used in) financing activities | (857 | ) | 3,298 | 6,583 | ||||||
Change in cash, cash equivalents and restricted cash | 583 | 1,174 | (420 | ) | ||||||
Cash, cash equivalents and restricted cash, beginning of year | 3,856 | 2,682 | 3,102 | |||||||
Cash, cash equivalents and restricted cash, end of year | $ | 4,439 | $ | 3,856 | $ | 2,682 | ||||
Supplemental disclosures of cash flow information |
Net cash paid (received) for: | ||||||||||
Interest | $ | 65 | $ | 65 | $ | 65 | ||||
Income tax | $ | (10 | ) | $ | 1 | $ | (20 | ) | ||
Non-cash transactions: | ||||||||||
Transfer of fixed maturity securities from affiliates | $ | 99 | $ | — | $ | 103 | ||||
Transfer of fixed maturity securities to affiliates | $ | 48 | $ | 126 | $ | 234 | ||||
Transfer of mortgage loans to affiliates | $ | 43 | $ | — | $ | — | ||||
See accompanying notes to the condensed financial information.
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Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Schedule II
Notes to the Condensed Financial Information
(Parent Company Only)
1. Basis of Presentation
The condensed financial information of Brighthouse Life Insurance Company (the “Parent Company”) should be read in conjunction with the consolidated financial statements of Brighthouse Life Insurance Company and its subsidiaries and the notes thereto (the “Consolidated Financial Statements”). These condensed unconsolidated financial statements reflect the results of operations, financial position and cash flows for the Parent Company. Investments in subsidiaries are accounted for using the equity method of accounting.
The preparation of these condensed unconsolidated financial statements in conformity with GAAP requires management to adopt accounting policies and make certain estimates and assumptions. The most important of these estimates and assumptions relate to the fair value measurements, identifiable intangible assets and the provision for potential losses that may arise from litigation and regulatory proceedings and tax audits, which may affect the amounts reported in the condensed unconsolidated financial statements and accompanying notes. Actual results could differ from these estimates.
2. Investment in Subsidiaries
During the year ended December 31, 2025, Brighthouse Life Insurance Company received a cash capital contribution of $100 million from Brighthouse Holdings, LLC. During the year ended December 31, 2023, Brighthouse Life Insurance Company paid a non-cash capital contribution of $100 million to Brighthouse Life Insurance Company of NY.
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Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Schedule III
Consolidated Supplementary Insurance Information
December 31, 2025 and 2024
(In millions)
Segment | DAC | Future Policy | Policyholder | Unearned | Unearned |
2025 |
Annuities | $ | 3,884 | $ | 4,263 | $ | 69,957 | $ | — | $ | 53 | |||||
Life | 389 | 6,256 | 2,235 | 10 | 215 | ||||||||||
Run-off | 3 | 18,900 | 5,504 | — | 793 | ||||||||||
Corporate & Other | — | 5,978 | 9,478 | 5 | — | ||||||||||
Total | $ | 4,276 | $ | 35,397 | $ | 87,174 | $ | 15 | $ | 1,061 | |||||
2024 |
Annuities | $ | 3,951 | $ | 4,013 | $ | 67,602 | $ | — | $ | 59 | |||||
Life | 420 | 6,083 | 2,207 | 9 | 190 | ||||||||||
Run-off | 3 | 18,672 | 6,376 | — | 715 | ||||||||||
Corporate & Other | — | 5,994 | 10,977 | 5 | — | ||||||||||
Total | $ | 4,374 | $ | 34,762 | $ | 87,162 | $ | 14 | $ | 964 | |||||
90
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Schedule III
Consolidated Supplementary Insurance Information (continued)
December 31, 2025, 2024 and 2023
(In millions)
Segment | Premiums and | Net | Policyholder Benefits | Amortization of | Other |
2025 |
Annuities | $ | 1,439 | $ | 3,043 | $ | 1,874 | $ | 514 | $ | 1,032 | |||||
Life | 567 | 381 | 759 | 50 | 180 | ||||||||||
Run-off | 354 | 1,150 | 869 | — | 127 | ||||||||||
Corporate & Other | — | 565 | 409 | — | 270 | ||||||||||
Total | $ | 2,360 | $ | 5,139 | $ | 3,911 | $ | 564 | $ | 1,609 | |||||
2024 |
Annuities | $ | 1,531 | $ | 2,841 | $ | 1,832 | $ | 497 | $ | 1,007 | |||||
Life | 496 | 418 | 633 | 53 | 169 | ||||||||||
Run-off | 333 | 1,230 | 1,335 | — | 165 | ||||||||||
Corporate & Other | — | 611 | 449 | — | 260 | ||||||||||
Total | $ | 2,360 | $ | 5,100 | $ | 4,249 | $ | 550 | $ | 1,601 | |||||
2023 |
Annuities | $ | 1,499 | $ | 2,536 | $ | 1,556 | $ | 507 | $ | 997 | |||||
Life | 615 | 385 | 688 | 57 | 182 | ||||||||||
Run-off | 475 | 1,115 | 1,587 | — | 167 | ||||||||||
Corporate & Other | — | 524 | 388 | — | 279 | ||||||||||
Total | $ | 2,589 | $ | 4,560 | $ | 4,219 | $ | 564 | $ | 1,625 | |||||
91
Brighthouse Life Insurance Company
(An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.)
Schedule IV
Consolidated Reinsurance
December 31, 2025, 2024 and 2023
(Dollars in millions)
Gross Amount | Ceded | Assumed | Net Amount | % Amount |
2025 |
Life insurance in-force (1) | $ | 420,549 | $ | 113,518 | $ | 6,286 | $ | 313,317 | 2.0 | % | ||||
Insurance premium | ||||||||||||||
Life insurance (2) | $ | 1,060 | $ | 398 | $ | 18 | $ | 680 | 2.6 | % | ||||
Accident & health insurance | 175 | 173 | — | 2 | — | % | ||||||||
Total insurance premium | $ | 1,235 | $ | 571 | $ | 18 | $ | 682 | 2.6 | % | ||||
2024 |
Life insurance in-force (1) | $ | 447,395 | $ | 121,327 | $ | 6,940 | $ | 333,008 | 2.1 | % | ||||
Insurance premium | ||||||||||||||
Life insurance (2) | $ | 1,181 | $ | 444 | $ | 20 | $ | 757 | 2.6 | % | ||||
Accident & health insurance | 186 | 184 | — | 2 | — | % | ||||||||
Total insurance premium | $ | 1,367 | $ | 628 | $ | 20 | $ | 759 | 2.6 | % | ||||
2023 |
Life insurance in-force (1) | $ | 463,582 | $ | 129,016 | $ | 7,479 | $ | 342,045 | 2.2 | % | ||||
Insurance premium | ||||||||||||||
Life insurance (2) | $ | 1,257 | $ | 475 | $ | 20 | $ | 802 | 2.5 | % | ||||
Accident & health insurance | 201 | 192 | — | 9 | — | % | ||||||||
Total insurance premium | $ | 1,458 | $ | 667 | $ | 20 | $ | 811 | 2.5 | % | ||||
For the years ended December 31, 2025, 2024 and 2023, reinsurance assumed included related party transactions for life insurance in-force of $1.3 billion, $1.3 billion and $1.4 billion, respectively, and life insurance premiums of $9 million, $8 million and $6 million, respectively. There were no related party transactions for ceded life insurance in-force and life insurance premiums for the years ended December 31, 2025, 2024 and 2023.
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