Brighthouse shares rise 3.8% despite Q3 profit miss

Brighthouse Financial (BHF) shares rose 3.8% at 3:59 p.m. ET, from a $41.10 close. The company reported third-quarter adjusted earnings, less notable items, of $213 million, or $3.68 per diluted share, below the $5.24 consensus estimate.

Net income per diluted share was $7.89 a year earlier. Adjusted earnings before notable items were $527 million, or $9.12 per diluted share, versus $970 million, or $16.87 per diluted share, a year earlier.

Here's how the company did:

• Adjusted earnings per share, less notable items: $3.68 vs. $4.54 a year earlier, against a $5.24 consensus estimate
• Revenue: $2.10 billion vs. $2.17 billion a year earlier, against a $2.21 billion estimate
• Net income available to shareholders: $302 million, or $5.21 per diluted share, vs. $453 million a year earlier
• Book value per common share: $57.59, or $161.36 excluding AOCI

Net income swung from a profit of $137 million in the fourth quarter of 2025 to a loss of $766 million in the first quarter of 2026.

Notable items and capital

Favorable notable items of $314 million, or $5.42 per diluted share, came from the annual actuarial review.

Net income will keep showing volatility, given differences between its hedge target and GAAP reserves, which market performance affects.

Statutory combined total adjusted capital was $4.8 billion, and the estimated combined risk-based capital ratio was between 415% and 435%. Holding company liquid assets were $1.0 billion.

Corporate expenses were $204 million, flat from the third quarter of 2025 and the second quarter of 2026.

Sales and segment results

Annuity sales were $2.4 billion, down 12% quarter-over-quarter and 8% year-to-date, driven by lower fixed annuity sales. Shield Level Annuities sales were $2.1 billion.

Life sales were $36 million, down 5% quarter-over-quarter and flat year-to-date.

Adjusted earnings were $301 million in Annuities, compared with $304 million a year earlier. Life reported $91 million, up from $40 million, and Run-off reported $166 million, down from $641 million.

Pending merger with Aquarian Capital

On Nov. 6, 2025, Aquarian Capital agreed to acquire Brighthouse for $70.00 per share in cash, a transaction valued at about $4.1 billion.

The merger still needs insurance regulatory approvals in Delaware, New York and Massachusetts. Under the merger agreement, the outside date was automatically extended to Dec. 6, 2026. The company and Aquarian Capital are discussing an extension and remain committed to the deal.