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Segment Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Information 2. Segment Information
The Company is organized into three segments: Annuities; Life; and Run-off. In addition, the Company reports certain of its results of operations in Corporate & Other.
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 and services, 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 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.
Corporate & Other
Corporate & Other contains the excess capital not allocated to the 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. Corporate & Other also includes long-term care and workers’ compensation business reinsured through 100% quota share reinsurance agreements, activities related to funding agreements associated with the Company’s institutional spread margin business, as well as direct-to-consumer life insurance that is no longer actively sold.
Financial Measures and Segment Accounting Policies
Adjusted earnings is a financial measure used by management to evaluate performance and facilitate comparisons to industry results. Consistent with GAAP guidance for segment reporting, adjusted earnings is also used to measure segment performance. 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 are significant items excluded from total revenues in calculating adjusted earnings:
•Net investment gains (losses);
•Net derivative gains (losses) except 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; and
•Certain variable annuity GMIB fees (“GMIB Fees”).
The following are significant items excluded from total expenses in calculating adjusted earnings:
•Amounts associated with benefits related to GMIBs (“GMIB Costs”);
•Amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets; and
•Amortization of DAC and VOBA related to: (i) net investment gains (losses), (ii) net derivative gains (losses) and (iii) GMIB Fees and GMIB Costs.
The tax impact of the adjustments discussed above is calculated net of the statutory tax rate, which could differ from the Company’s effective tax rate.
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. For the variable annuity business, the excess capital held is based on the target statutory total asset requirement consistent with the Company’s variable annuity risk management strategy. For insurance businesses other than variable annuities, excess capital held is based on a percentage of required statutory risk-based capital (“RBC”). Assets in excess of those allocated to the segments, if any, are held in Corporate & Other. Segment net investment income reflects the performance of each segment’s respective invested assets.
Operating results by segment, as well as Corporate & Other, were as follows:
Year Ended December 31, 2021
AnnuitiesLifeRun-offCorporate & OtherTotal
(In millions)
Pre-tax adjusted earnings$1,796 $362 $244 $(347)$2,055 
Provision for income tax expense (benefit)347 75 53 (107)368 
Post-tax adjusted earnings1,449 287 191 (240)1,687 
Less: Net income (loss) attributable to noncontrolling interests— — — 5 5 
Less: Preferred stock dividends— — — 89 89 
Adjusted earnings$1,449 $287 $191 $(334)1,593 
Adjustments for:
Net investment gains (losses)(59)
Net derivative gains (losses)(2,469)
Other adjustments to net income (loss)265 
Provision for income tax (expense) benefit473 
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders$(197)
Interest revenue$2,217 $673 $1,910 $102 
Interest expense$— $— $— $163 
Year Ended December 31, 2020
AnnuitiesLifeRun-offCorporate & OtherTotal
(In millions)
Pre-tax adjusted earnings$1,433 $182 $(1,655)$(332)$(372)
Provision for income tax expense (benefit)266 34 (356)(87)(143)
Post-tax adjusted earnings1,167 148 (1,299)(245)(229)
Less: Net income (loss) attributable to noncontrolling interests— — — 5 5 
Less: Preferred stock dividends— — — 44 44 
Adjusted earnings$1,167 $148 $(1,299)$(294)(278)
Adjustments for:
Net investment gains (losses)278 
Net derivative gains (losses)(18)
Other adjustments to net income (loss)(1,307)
Provision for income tax (expense) benefit220 
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders$(1,105)
Interest revenue$1,820 $460 $1,269 $70 
Interest expense$— $— $— $184 
Year Ended December 31, 2019
AnnuitiesLifeRun-offCorporate & OtherTotal
(In millions)
Pre-tax adjusted earnings$1,263 $288 $(580)$(301)$670 
Provision for income tax expense (benefit)235 57 (126)(121)45 
Post-tax adjusted earnings1,028 231 (454)(180)625 
Less: Net income (loss) attributable to noncontrolling interests— — — 5 5 
Less: Preferred stock dividends— — — 21 21 
Adjusted earnings$1,028 $231 $(454)$(206)599 
Adjustments for:
Net investment gains (losses)112 
Net derivative gains (losses)(1,988)
Other adjustments to net income (loss)154 
Provision for income tax (expense) benefit362 
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders$(761)
Interest revenue$1,809 $436 $1,265 $75 
Interest expense$— $— $— $191 
Total revenues by segment, as well as Corporate & Other, were as follows:
Years Ended December 31,
202120202019
(In millions)
Annuities$5,216 $4,563 $4,648 
Life1,491 1,334 1,328 
Run-off2,557 1,938 2,009 
Corporate & Other181 156 176 
Adjustments(2,303)512 (1,607)
Total$7,142 $8,503 $6,554 
Total assets by segment, as well as Corporate & Other, were as follows at:
December 31,
20212020
(In millions)
Annuities$178,700 $172,233 
Life24,514 23,809 
Run-off37,055 38,366 
Corporate & Other19,571 13,461 
Total$259,840 $247,869 
Total premiums, universal life and investment-type product policy fees and other revenues by major product group were as follows:
Years Ended December 31,
202120202019
(In millions)
Annuity products$3,252 $3,010 $3,106 
Life insurance products1,527 1,619 1,709 
Other products10 13 36 
Total$4,789 $4,642 $4,851 
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, 2021, 2020 and 2019.