v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information
2. Segment Information
The Company is organized into and provides its products and services through the following reportable segments: Annuities; Life; Run-off; and Corporate & Other. The Company’s chief operating decision maker (“CODM”) views and manages the business through these segments.
Annuities
The Annuities segment consists of a variety of variable, fixed, index-linked and income annuities designed to address contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer and income security.
Life
The Life segment consists of insurance products, including term, universal, whole and variable life products designed to address policyholders’ needs for financial security and protected wealth transfer, which may be on a tax-advantaged basis.
Run-off
The Run-off segment consists primarily of products that are no longer actively sold and are separately managed, including universal life with secondary guarantees (“ULSG”), structured settlements, pension risk transfer contracts, certain company-owned life insurance policies and certain funding agreements.
Corporate & Other
The Corporate & Other segment consists of activities related to funding agreements associated with the Company’s institutional spread margin business, excess capital not allocated to the other segments 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.
The following items are excluded from total revenues in calculating adjusted earnings:
•Net investment gains (losses);
•Investment gains (losses) on trading securities measured at estimated fair value through net investment income; and
•Net derivative gains (losses), excluding earned income and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment (“Investment Hedge Adjustments”).
The following items are excluded from total expenses in calculating adjusted earnings:
•Change in market risk benefits (“MRB”); and
•Change in fair value of the crediting rate on experience-rated contracts and market value adjustments on institutional group annuities that are economically offset by gains (losses) on the related trading securities (“Market Value Adjustments”).
The provision for income tax related to adjusted earnings is calculated using the statutory tax rate of 21%, net of impacts related to the dividends received deduction, tax credits and current period non-recurring items.
The segment accounting policies are the same as those used to prepare the Company’s interim condensed 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 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.
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.
Three Months Ended March 31, 2026
Annuities
Life
Run-off
Corporate & Other
Total
(In millions)
Total revenues
$
703 
$
186 
$
353 
$
124 
$
1,366 
Less: Revenues excluded from adjusted earnings (1)
(555)
(7)
(10)
2 
Less: Segment expenses:
Policyholder benefits and claims
127 
145 
343 
— 
Interest credited to policyholder account balances, excluding market value adjustments
333 
23 
53 
90 
Amortization of DAC and VOBA
135 
12 
— 
— 
Interest expense on debt
— 
— 
— 
17 
Other expenses (2)
272 
32 
28 
43 
Less: Provision for income tax expense (benefit)
74 
(4)
(13)
(14)
Less: Net income (loss) attributable to noncontrolling interests
— 
— 
— 
— 
Adjusted earnings (loss)
$
317 
$
(15)
$
(48)
$
(14)
240 
Adjustments for:
Net investment gains (losses)
(52)
Investment gains (losses) on trading securities
(10)
Net derivative gains (losses), excluding investment hedge adjustments of $0
(508)
Change in market risk benefits
(748)
Market value adjustments
13 
Provision for income tax (expense) benefit
274 
Net income (loss) attributable to Brighthouse Life Insurance Company
$
(791)
Interest revenue
$
769 
$
87 
$
268 
$
122 
Three Months Ended March 31, 2025
Annuities
Life
Run-off
Corporate & Other
Total
(In millions)
Total revenues
$
1,489 
$
225 
$
368 
$
150 
$
2,232 
Less: Revenues excluded from adjusted earnings (1)
247 
(10)
1 
5 
Less: Segment expenses:
Policyholder benefits and claims
111 
156 
352 
— 
Interest credited to policyholder account balances, excluding market value adjustments
357 
21 
60 
106 
Amortization of DAC and VOBA
124 
12 
— 
— 
Interest expense on debt
— 
— 
— 
17 
Other expenses (2)
271 
40 
36 
46 
Less: Provision for income tax expense (benefit)
72 
1 
(18)
(13)
Less: Net income (loss) attributable to noncontrolling interests
— 
— 
— 
— 
Adjusted earnings (loss)
$
307 
$
5 
$
(63)
$
(11)
238 
Adjustments for:
Net investment gains (losses)
(81)
Investment gains (losses) on trading securities
6 
Net derivative gains (losses), excluding investment hedge adjustments of $0
318 
Change in market risk benefits
(896)
Market value adjustments
(10)
Provision for income tax (expense) benefit
138 
Net income (loss) attributable to Brighthouse Life Insurance Company
$
(287)
Interest revenue
$
751 
$
94 
$
272 
$
146 
_______________
(1)For each reportable segment, certain revenues are excluded from adjusted earnings (loss), including net investment gains (losses), investment gains (losses) on trading securities and net derivative gains (losses), excluding Investment Hedge Adjustments.
(2)Other expenses include corporate expense allocations directly attributable to each of the segments.
Total assets by segment were as follows at:
March 31, 2026
December 31, 2025
(In millions)
Annuities
$
160,935 
$
164,175 
Life
21,689 
21,802 
Run-off
24,729 
25,470 
Corporate & Other
20,218 
20,539 
Total
$
227,571 
$
231,986 
Total premiums, universal life and investment-type product policy fees and other revenues by major product group were as follows:
Three Months Ended
March 31,
20262025
(In millions)
Annuity products
$
489 
$
491 
Life insurance products
198 
233 
Other products
3 
2 
Total
$
690 
$
726 
Substantially all of the Company’s premiums, universal life and investment-type product policy fees and other revenues originated in the U.S.
Revenues derived from any individual customer did not exceed 10% of premiums, universal life and investment-type product policy fees and other revenues for the three months ended March 31, 2026 and 2025.