**Brighthouse Financial Reports Annual Performance Amidst Merger Agreement**

Brighthouse Financial, Inc. (BHF), a major U.S. annuity and life insurance provider with over 2 million contracts and policies in force, released its 10-K filing, detailing its financial performance for the year ended December 31, 2025. The company reported net income available to shareholders of $331 million, compared to $286 million in the previous year. Adjusted earnings, a non-GAAP measure used by management to evaluate performance, reached $1.6 billion, up from $1.3 billion in 2024. The increase in net income was attributed to favorable pre-tax adjusted earnings and a net investment gain from the sale of a subsidiary, partially offset by unfavorable changes in Shield embedded derivatives, net investment losses, and the weakening of the U.S. dollar.

The filing highlighted several key operational developments. Assets under management (AUM) totaled $206.2 billion, slightly up from $203 billion in 2024. Annuity deposits for Shield Annuities increased to $8.0 billion from $7.7 billion in the prior year, while deposits for variable annuities with Guaranteed Minimum Withdrawal Benefits (GMWB) rose to $445 million from $355 million. The company's distribution strategy involves multiple independent channels, with independent financial planners accounting for 57% of annuity sales and financial intermediaries representing 88% of life insurance sales.

Strategic developments were also noted in the filing. On November 6, 2025, BHF entered into a merger agreement with Aquarian Holdings VI L.P., under which Aquarian Beacon Merger Sub Inc. will merge with BHF, making BHF a wholly-owned subsidiary of Aquarian Parent. The merger, approved by stockholders on February 12, 2026, is expected to close in 2026, subject to regulatory approvals and other customary conditions. As part of the merger agreement, BHF has agreed to certain restrictions on its business operations, including limitations on paying dividends or repurchasing stock without Aquarian Parent's consent.

The 10-K filing also provided explanations for changes in financial performance. The company completed an initiative in the third quarter of 2025 to establish standalone hedging programs for its variable annuity and first-generation Shield Annuity contracts, allowing for more effective risk management. The company's ULSG asset requirement target is sensitive to interest rates, and it uses interest rate derivatives to mitigate exposure. The company intends to focus on selling its new suite of Shield Annuity products, along with variable annuities with GMWBs and Guaranteed Minimum Death Benefits (GMDBs) only. The company's outlook includes forward-looking statements, cautioning against reliance on these statements due to various risks and uncertainties, including the ability to complete the merger, market conditions, and regulatory changes.

About Brighthouse Financial, Inc.

Brighthouse Financial, Inc. is a leading U.S. provider of annuity and life insurance products, including variable, fixed, index-linked, and income annuities, as well as term, universal, whole, and variable life insurance. Serving individual customers primarily through independent distribution channels, the company focuses on risk-managed product design, capital efficiency, and long-term financial security solutions. Its business model emphasizes disciplined underwriting, diversified reinsurance, and fee-based revenue from investment management and insurance guarantees.

This description was generated via AI from an annual report. Updated 9 months ago.

About 10-K Filings

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