BHF Q2 Earnings Miss Estimates, Investment Income Falls Y/Y

Behind the Headlines

Total operating revenues of $2.1 billion decreased 2% year over year, due to lower universal life and investment-type product policy fees, net investment income and other revenues, partly offset by slightly higher premiums. The figure was below the Zacks Consensus Estimate by 8.1%.

Premiums of $165 million increased 0.6% year over year.

Adjusted net investment income was $1.2 billion in the quarter under review, down 4.1% year over year, primarily due to lower alternative investment income. The adjusted net investment income yield was 4.17%.

Total expenses were $396 million, which declined 49.1% year over year. Corporate expenses, pretax, were $204 million, up 1% year over year.

Quarterly Segmental Update of BHF

Annuities recorded an adjusted operating income of $349 million, up 5.1% year over year. Annuity sales decreased 7.1% year over year to $2.4 billion, driven by lower fixed annuity sales.

Life’s adjusted operating loss was $4 million, narrower than the year-ago loss of $26 million. It reflected a lower underwriting margin and lower net investment income, partially offset by lower expenses. Life insurance sales increased 18.2% quarter over quarter to $39 million.

Adjusted operating loss at Run-off was $56 million, narrower than the year-ago loss of $83 million. It reflected a higher underwriting margin and lower expenses, partially offset by lower net investment income.

Corporate & Other incurred an adjusted operating loss of $31 million, wider than the year-ago loss of $25 million, reflecting lower net investment income, partially offset by higher interest credited.

Financial Update of BHF

Cash and cash equivalents were $7.1 billion, up 28.2% year over year.

Shareholders’ equity of $6.6 billion at the end of the second quarter of 2026 increased 15.4% year over year.

As of June 30, 2026, book value per share, excluding accumulated other comprehensive income, was $156.10, up 8.3% year over year.

As of June 30, 2026, Statutory combined total adjusted capital was $4.9 billion, down 12.5% year over year.

As of June 30, 2026, the estimated combined risk-based capital ratio was between 430% and 450%.

Zacks Rank

Brighthouse Financial currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Life Insurers

Voya Financial, Inc. VOYA reported second-quarter 2026 adjusted operating earnings of $1.51 per share, missing the Zacks Consensus Estimate of $1.88 by 19.7%. The bottom line declined 38.6% year over year. Revenues of $269 million missed the consensus mark by 4.6%.

After-tax adjusted operating earnings fell to $140 million from $240 million in the year-ago quarter. Results included about $40 million of pre-tax severance expenses and a $15 million pre-tax loss tied to alternative investment performance. Consolidated revenues declined 4.3% year over year to $1.90 billion. Fee income increased 7.5% to $620 million, but net investment income fell 8% to $537 million. Premiums remained nearly flat at $716 million. Total benefits and expenses rose 3.8% to $1.86 billion, including a 4.8% increase in operating expenses.

Manulife Financial Corporation MFC reported second-quarter 2026 core earnings of 79 cents per share, which beat the Zacks Consensus Estimate by 1.3%. The bottom line increased 16% year over year. Revenues of $7.82 billion surpassed the consensus estimate of $7.42 billion by 5.4%.

Core earnings were C$1.92 billion ($1.38 billion), up 12% year over year. APE sales advanced 21% year over year to C$2.70 billion ($1.95 billion). Asia remained the largest contributor, with sales rising to C$2.07 billion from C$1.71 billion. Canada APE sales increased 23% year over year to C$426 million ($307.69 million).

Lincoln National Corporation LNC reported second-quarter 2026 adjusted earnings per share of $2.24, which surpassed the Zacks Consensus Estimate by 12%. The bottom line declined 5.1% year over year. Adjusted operating revenues grew 4.2% year over year to $4.93 billion, surpassing the Zacks Consensus Estimate by 1.4%.

Management had earlier projected that the Annuities, Life Insurance, Group Protection and Retirement Plan Services units would account for 58-60%, 8-9%, 24-25% and 8-9%, respectively, of the company's total operating income in 2026. Management had earlier projected an RBC ratio of more than 420% in 2026 and over the long term.

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