10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to ___

Commission File Number: 001-37905

Brighthouse Financial, Inc.

(Exact name of registrant as specified in its charter)

Delaware	81-3846992
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
11225 North Community House Road, Charlotte, North Carolina	28277
(Address of principal executive offices)	(Zip Code)

(980) 365-7100

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	BHF	The Nasdaq Stock Market LLC
Depositary Shares, each representing a 1/1,000th interest in a share of 6.600% Non-Cumulative Preferred Stock, Series A	BHFAP	The Nasdaq Stock Market LLC
Depositary Shares, each representing a 1/1,000th interest in a share of 6.750% Non-Cumulative Preferred Stock, Series B	BHFAO	The Nasdaq Stock Market LLC
Depositary Shares, each representing a 1/1,000th interest in a share of 5.375% Non-Cumulative Preferred Stock, Series C	BHFAN	The Nasdaq Stock Market LLC
Depositary Shares, each representing a 1/1,000th interest in a share of 4.625% Non-Cumulative Preferred Stock, Series D	BHFAM	The Nasdaq Stock Market LLC
6.250% Junior Subordinated Debentures due 2058	BHFAL	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes þ  No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes þ    No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	þ	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ☐ No þ

As of November 3, 2023, 64,204,798 shares of the registrant’s common stock were outstanding.

Table of Contents

		Page
Part I — Financial Information
Item 1.	Consolidated Financial Statements (at September 30, 2023 (Unaudited) and December 31, 2022 and for the Three Months and Nine Months Ended September 30, 2023 and 2022 (Unaudited)):
	Interim Condensed Consolidated Balance Sheets	2
	Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)	3
	Interim Condensed Consolidated Statements of Equity	4
	Interim Condensed Consolidated Statements of Cash Flows	5
	Notes to the Interim Condensed Consolidated Financial Statements (Unaudited):
	Note 1 — Business, Basis of Presentation and Summary of Significant Accounting Policies	6
	Note 2 — ASU 2018-12 Transition	11
	Note 3 — Segment Information	13
	Note 4 — Insurance	17
	Note 5 — Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles	26
	Note 6 — Investments	28
	Note 7 — Derivatives	40
	Note 8 — Fair Value	46
	Note 9 — Long-term Debt	56
	Note 10 — Equity	56
	Note 11 — Other Revenues and Other Expenses	59
	Note 12 — Earnings Per Common Share	60
	Note 13 — Contingencies, Commitments and Guarantees	61
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	65
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	107
Item 4.	Controls and Procedures	107
Part II — Other Information
Item 1.	Legal Proceedings	107
Item 1A.	Risk Factors	107
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	108
Item 5.	Other Information	108
Item 6.	Exhibits	109
Signature		110

Part I — Financial Information

Item 1. Financial Statements

Brighthouse Financial, Inc.

Interim Condensed Consolidated Balance Sheets

September 30, 2023 (Unaudited) and December 31, 2022

(In millions, except share and per share data)

	September 30, 2023		December 31, 2022
Assets
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $86,373 and $84,344, respectively; allowance for credit losses of $22 and $7, respectively)	$	75,433	$	75,577
Equity securities, at estimated fair value	90		89
Mortgage loans (net of allowance for credit losses of $137 and $119, respectively)	22,682		22,936
Policy loans	1,311		1,282
Limited partnerships and limited liability companies	4,931		4,775
Short-term investments, principally at estimated fair value	1,003		1,081
Other invested assets, principally at estimated fair value (net of allowance for credit losses of $13 and $13, respectively)	3,210		2,852
Total investments	108,660		108,592
Cash and cash equivalents	3,839		4,115
Accrued investment income	1,143		885
Premiums, reinsurance and other receivables (net of allowance for credit losses of $13 and $10, respectively)	19,066		18,548
Deferred policy acquisition costs and value of business acquired	4,919		5,084
Current income tax recoverable	31		38
Deferred income tax asset	2,121		1,736
Market risk benefit assets	694		483
Other assets	368		401
Separate account assets	82,675		84,965
Total assets	$	223,516	$	224,847
Liabilities and Equity
Liabilities
Future policy benefits	$	30,404	$	31,497
Policyholder account balances	78,371		73,527
Market risk benefit liabilities	8,830		10,389
Other policy-related balances	3,806		4,098
Payables for collateral under securities loaned and other transactions	3,941		4,560
Long-term debt	3,157		3,156
Other liabilities	8,198		7,057
Separate account liabilities	82,675		84,965
Total liabilities	219,382		219,249
Contingencies, Commitments and Guarantees (Note 13)
Equity
Brighthouse Financial, Inc.’s stockholders’ equity:
Preferred stock, par value $0.01 per share; $1,753 aggregate liquidation preference	—		—
Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 122,790,019 and 122,153,422 shares issued, respectively; 64,703,557 and 68,278,068 shares outstanding, respectively	1		1
Additional paid-in capital	14,022		14,075
Retained earnings (deficit)	(590)		(395)
Treasury stock, at cost; 58,086,462 and 53,875,354 shares, respectively	(2,248)		(2,042)
Accumulated other comprehensive income (loss)	(7,116)		(6,106)
Total Brighthouse Financial, Inc.’s stockholders’ equity	4,069		5,533
Noncontrolling interests	65		65
Total equity	4,134		5,598
Total liabilities and equity	$	223,516	$	224,847

See accompanying notes to the interim condensed consolidated financial statements.

2

Brighthouse Financial, Inc.

Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

For the Three Months and Nine Months Ended September 30, 2023 and 2022 (Unaudited)

(In millions, except per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenues
Premiums	$	194	$	162	$	602	$	495
Universal life and investment-type product policy fees	542		597		1,749		1,886
Net investment income	1,202		877		3,457		3,089
Other revenues	125		122		348		378
Net investment gains (losses)	(53)		(45)		(213)		(179)
Net derivative gains (losses)	(840)		(592)		(3,226)		1,331
Total revenues	1,170		1,121		2,717		7,000
Expenses
Policyholder benefits and claims (including liability remeasurement gains (losses) of ($234), $35, ($234) and $35, respectively)	590		534		1,966		1,926
Interest credited to policyholder account balances	426		405		1,300		937
Amortization of deferred policy acquisition costs and value of business acquired	155		159		468		474
Change in market risk benefits	(1,064)		(984)		(2,170)		(2,625)
Other expenses	473		495		1,453		1,596
Total expenses	580		609		3,017		2,308
Income (loss) before provision for income tax	590		512		(300)		4,692
Provision for income tax expense (benefit)	109		97		(109)		945
Net income (loss)	481		415		(191)		3,747
Less: Net income (loss) attributable to noncontrolling interests	2		2		4		4
Net income (loss) attributable to Brighthouse Financial, Inc.	479		413		(195)		3,743
Less: Preferred stock dividends	26		25		77		78
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders	$	453	$	388	$	(272)	$	3,665
Comprehensive income (loss)	$	(754)	$	(2,424)	$	(1,201)	$	(3,315)
Less: Comprehensive income (loss) attributable to noncontrolling interests	2		2		4		4
Comprehensive income (loss) attributable to Brighthouse Financial, Inc.	$	(756)	$	(2,426)	$	(1,205)	$	(3,319)

Earnings per common share
Basic	$	6.92	$	5.42	$	(4.08)	$	49.31
Diluted	$	6.89	$	5.39	$	(4.08)	$	49.00

See accompanying notes to the interim condensed consolidated financial statements.

3

Brighthouse Financial, Inc.

Interim Condensed Consolidated Statements of Equity

For the Three Months and Nine Months Ended September 30, 2023 and 2022 (Unaudited)

(In millions)

	Preferred Stock		Common Stock		Additional Paid-in Capital		Retained Earnings (Deficit)		Treasury Stock at Cost		Accumulated Other Comprehensive Income (Loss)		Brighthouse Financial, Inc.’s Stockholders’ Equity		Noncontrolling Interests		Total Equity
Balance at December 31, 2022	$	—	$	1	$	14,075	$	(395)	$	(2,042)	$	(6,106)	$	5,533	$	65	$	5,598
Treasury stock acquired in connection with share repurchases									(126)				(126)				(126)
Share-based compensation			—		15				(15)				—				—
Dividends on preferred stock					(51)								(51)				(51)
Change in noncontrolling interests													—		(2)		(2)
Net income (loss)							(674)						(674)		2		(672)
Other comprehensive income (loss), net of income tax											225		225				225
Balance at June 30, 2023	—		1		14,039		(1,069)		(2,183)		(5,881)		4,907		65		4,972
Treasury stock acquired in connection with share repurchases									(64)				(64)				(64)
Share-based compensation			—		9				(1)				8				8
Dividends on preferred stock					(26)								(26)				(26)
Change in noncontrolling interests													—		(2)		(2)
Net income (loss)							479						479		2		481
Other comprehensive income (loss), net of income tax											(1,235)		(1,235)				(1,235)
Balance at September 30, 2023	$	—	$	1	$	14,022	$	(590)	$	(2,248)	$	(7,116)	$	4,069	$	65	$	4,134

	Preferred Stock		Common Stock		Additional Paid-in Capital		Retained Earnings (Deficit)		Treasury Stock at Cost		Accumulated Other Comprehensive Income (Loss)		Brighthouse Financial, Inc.’s Stockholders’ Equity		Noncontrolling Interests		Total Equity
Balance at December 31, 2021	$	—	$	1	$	14,154	$	(4,274)	$	(1,543)	$	47	$	8,385	$	65	$	8,450
Treasury stock acquired in connection with share repurchases									(259)				(259)				(259)
Share-based compensation			—		12				(11)				1				1
Dividends on preferred stock					(53)								(53)				(53)
Change in noncontrolling interests													—		(2)		(2)
Net income (loss)							3,330						3,330		2		3,332
Other comprehensive income (loss), net of income tax											(4,223)		(4,223)				(4,223)
Balance at June 30, 2022	—		1		14,113		(944)		(1,813)		(4,176)		7,181		65		7,246
Treasury stock acquired in connection with share repurchases									(136)				(136)				(136)
Share-based compensation			—		7				—				7				7
Dividends on preferred stock					(25)								(25)				(25)
Change in noncontrolling interests													—		(2)		(2)
Net income (loss)							413						413		2		415
Other comprehensive income (loss), net of income tax											(2,839)		(2,839)				(2,839)
Balance at September 30, 2022	$	—	$	1	$	14,095	$	(531)	$	(1,949)	$	(7,015)	$	4,601	$	65	$	4,666

See accompanying notes to the interim condensed consolidated financial statements.

4

Brighthouse Financial, Inc.

Interim Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2023 and 2022 (Unaudited)

(In millions)

	Nine Months Ended September 30,
	2023		2022
Net cash provided by (used in) operating activities	$	(289)	$	(1,002)
Cash flows from investing activities
Sales, maturities and repayments of:
Fixed maturity securities	4,588		8,479
Equity securities	16		41
Mortgage loans	904		1,770
Limited partnerships and limited liability companies	136		180
Purchases of:
Fixed maturity securities	(6,626)		(14,333)
Equity securities	(6)		(37)
Mortgage loans	(659)		(4,059)
Limited partnerships and limited liability companies	(336)		(619)
Cash received in connection with freestanding derivatives	4,013		3,778
Cash paid in connection with freestanding derivatives	(4,640)		(3,395)
Net change in policy loans	(29)		(9)
Net change in short-term investments	112		716
Net change in other invested assets	(117)		(108)
Net cash provided by (used in) investing activities	(2,644)		(7,596)
Cash flows from financing activities
Policyholder account balances:
Deposits	16,292		23,545
Withdrawals	(12,773)		(14,264)
Net change in payables for collateral under securities loaned and other transactions	(619)		263
Long-term debt repaid	(1)		(2)
Dividends on preferred stock	(77)		(78)
Treasury stock acquired in connection with share repurchases	(190)		(395)
Financing element on certain derivative instruments and other derivative related transactions, net	43		(137)
Other, net	(18)		(15)
Net cash provided by (used in) financing activities	2,657		8,917
Change in cash, cash equivalents and restricted cash	(276)		319
Cash, cash equivalents and restricted cash, beginning of period	4,115		4,474
Cash, cash equivalents and restricted cash, end of period	$	3,839	$	4,793
Supplemental disclosures of cash flow information
Net cash paid (received) for:
Interest	$	82	$	83
Income tax	$	1	$	(120)

See accompanying notes to the interim condensed consolidated financial statements.

5

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies

Business

Brighthouse Financial, Inc. (“BHF” and together with its subsidiaries, “Brighthouse Financial” or the “Company”) is a holding company formed in 2016 to own the legal entities that historically operated a substantial portion of MetLife, Inc.’s former retail segment until becoming a separate, publicly-traded company in August 2017. Brighthouse Financial is one of the largest providers of annuity and life insurance products in the U.S. through multiple independent distribution channels and marketing arrangements with a diverse network of distribution partners. 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.

Basis of Presentation

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates.

Consolidation

The accompanying interim condensed consolidated financial statements include the accounts of Brighthouse Financial, as well as partnerships and limited liability companies (“LLC”) that the Company controls. Intercompany accounts and transactions have been eliminated.

The Company uses the equity method of accounting for investments in limited partnerships and LLCs when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. When the Company has virtually no influence over the investee’s operations, the investment is carried at fair value.

The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2022 consolidated balance sheet data was derived from audited consolidated financial statements included in Brighthouse Financial, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2022 Annual Report.

Reclassifications

Certain amounts in the prior year period’s interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform with the 2023 presentation as discussed throughout the Notes to the Interim Condensed Consolidated Financial Statements. See “— Adoption of New Accounting Pronouncements” for discussion of the adoption of new guidance on long-duration contracts in the first quarter of 2023, parts of which were retrospectively applied to prior periods presented in the interim condensed consolidated financial statements.

Summary of Significant Accounting Policies

In connection with the adoption of new guidance on long-duration insurance contracts, the Company updated its impacted accounting policies as described below. See Note 1 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report for a description of the Company’s accounting policies that did not change.

6

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Insurance Contract Obligations

The Company has obligations under insurance contracts to pay benefits over an extended period of time. The Company establishes liabilities for future obligations under long-duration insurance contracts based on the accounting model appropriate for each type of contract or contract feature. Liabilities for insurance contract benefits are generally accrued over time as revenue is recognized, or established based on the balance that accrues to the contract holder. In addition, certain insurance contracts may contain features that are required to be measured at fair value separately from the base contracts, either as a market risk benefit or embedded derivative.

The discussion below provides an overview of the different accounting models for insurance contract obligations and the applicability of such models to the Company’s insurance products.

Liability for Future Policy Benefits

The Company establishes a liability for future policy benefits (“LFPB”) for non-participating term and whole life insurance and income annuities. LFPBs are accrued over time as revenue is recognized based on a net premium ratio. The net premium ratio is the portion of gross premiums required to provide for all future benefits. LFPBs are established using the Company’s current assumptions of future cash flows, discounted at a rate that approximates a single A corporate bond curve. The Company generally aggregates insurance contracts into groupings by issue year, product and segment for determining the net premium ratio and related LFPBs.

The Company reviews cash flow assumptions regularly, and if they change significantly, LFPBs are adjusted by determining a revised net premium ratio. The revised net premium ratio is calculated as of contract inception using both actual historical experience and updated future cash flow assumptions. The recalculated net premium ratio is applied to derive a remeasurement gain or loss recognized in the current period net income. For insurance policies in-force as of December 31, 2020, January 1, 2021 is considered the contract inception date. The net premium ratio is also updated quarterly for the difference between actual and expected experience.

The net premium ratio is not updated for changes in discount rate assumptions, as changes in the discount rate are updated quarterly and the impacts are reflected in other comprehensive income (loss) (“OCI”). The discount rate assumption is determined by developing a yield curve based on market observable yields for upper-medium grade fixed income instruments derived from an external index. The yield curve is applied to the expected future cash flows used in the measurement of LFPBs based on the duration characteristics of those liabilities.

The most significant cash flow assumptions used in the establishment of LFPBs are mortality, policy lapses and market interest rates. See Note 4 for more information on the effect of changes in assumptions on the measurement of LFPBs.

The Company also establishes an LFPB for participating term and whole life insurance using a net premium ratio and the Company’s current assumptions of future cash flows. Assumptions are determined at issuance of the policy and are not updated unless a premium deficiency exists. A premium deficiency exists when the LFPB plus the present value of expected future gross premiums are less than expected future benefits and expenses (based on current assumptions). When a premium deficiency exists, the Company will reduce any deferred acquisition costs and may also establish an additional liability to eliminate the deficiency. See Note 4 for more information on assumptions used in establishing LFPBs related to participating term and whole life insurance.

Policyholder Account Balances

The Company establishes a policyholder account balance liability for customer deposits on universal life insurance, universal life insurance with secondary guarantees (“ULSG”) and deferred annuity contracts. The policyholder account balance liability is equal to the sum of deposits, plus interest credited, less charges and withdrawals, excluding the impact of any applicable charge that may be incurred upon surrender. The Company also holds additional liabilities for certain product features including secondary guarantees on universal life insurance contracts and the crediting rates associated with index-linked annuities.

7

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Additional Liabilities for ULSG

The Company establishes a liability in addition to the account balance for secondary guarantees on universal life insurance. These liabilities are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the contract period based on total expected assessments. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. The Company also maintains a liability for profits followed by losses on ULSG determined by projecting future earnings and establishing a liability to offset losses that are expected to occur in later years. Both ULSG liabilities are adjusted for the effects of unrealized investment gains and losses.

The Company reviews cash flow assumptions regularly, and, if they change significantly, the liability for secondary guarantees is adjusted by a cumulative charge or credit to net income. Liabilities for secondary guarantees are presented within future policy benefits with changes in the liabilities reported in policyholder benefits and claims, except for the effects of unrealized investment gains and losses, which are reported in OCI.

The most significant assumptions used in estimating liabilities for secondary guarantees are the general account rate of return, premium persistency, mortality and lapses. See Note 4 for more information on the effect of changes in assumptions on the measurement of liabilities for secondary guarantees.

Market Risk Benefits on Annuity Guarantees

Market risk benefits (“MRB”) are contracts or contract features that provide protection to the policyholder from capital markets risk by transferring such risks to the Company. MRBs are required to be separated from the deferred annuity host contract and measured at fair value. The Company establishes MRB assets and liabilities for guaranteed minimum benefits on variable annuity contracts including guaranteed minimum death benefits (“GMDB”), guaranteed minimum income benefits (“GMIB”), guaranteed minimum accumulation benefits (“GMAB”) and guaranteed minimum withdrawal benefits (“GMWB”). MRB assets are also established for reinsured benefits related to these guarantees. Certain index-linked annuity products may also have guaranteed minimum benefits classified as MRBs.

The measurement of fair value includes an adjustment for the risk that the Company fails to satisfy its obligations, which is referred to as nonperformance risk, as well as risk margin to capture the non-capital markets risks of the instrument, which represents the additional compensation a market participant would require to assume the risks related to the uncertainties in certain actuarial assumptions. MRBs are measured at estimated fair value, with changes reported in change in MRBs on the consolidated statements of operations, except for the change due to nonperformance risk, which is reported in OCI.

See Note 4 for more information on the effect of changes in inputs and assumptions on the measurement of MRBs and Note 8 for more information on the determination of fair value of MRBs.

Embedded Derivatives on Index-Linked Annuities

The Company issues, and assumes through reinsurance, index-linked annuities which allow the policyholder to participate in returns from certain specified equity indices. The crediting rates associated with these features are classified as embedded derivatives and measured at estimated fair value, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets.

Embedded derivative liabilities are required to be separated from the deferred annuity host contract and measured at fair value. The estimated fair value is determined using a combination of an option pricing model and an option-budget approach. Under this approach, the Company estimates the cost of funding the crediting rate using option pricing and establishes that cost on the balance sheet as a reduction to the initial deposit amount. The estimate of fair value includes an adjustment for nonperformance risk, as well as a risk margin.

8

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Actuarial assumptions are reviewed at least annually, and if they change significantly, the estimated fair value is adjusted through net income. Capital market inputs used in the measurement of index-linked crediting rate embedded derivatives are updated quarterly through net income. The reduction to the initial deposit is accreted back up to the initial deposit over the estimated life of the contract. Embedded derivatives related to index-linked annuities are presented within policyholder account balances while changes in the estimated fair value are reported in net derivative gains (losses).

For more information on the determination of estimated fair value of embedded derivatives, see Note 8.

Recognition of Revenues and Deposits on Insurance Contracts

Premiums related to traditional long-duration contracts are recognized as revenues when due from policyholders. When premiums for income annuities are due over a significantly shorter period than the period over which policyholder benefits are incurred, the Company establishes a deferred profit liability (“DPL”) for the excess of the gross premium over the net premium. DPLs are amortized into net income in proportion to the amount of expected future benefit payments. Assumptions used in the measurement of the DPL are updated at the same time as the related LFPBs, with the updated estimates used to recalculate the DPL as of contract inception. The remeasurement gain or loss from updating DPLs is recognized in current period net income along with the related change in LFPBs.

Deposits related to universal life insurance, deferred annuity contracts and investment contracts are credited to policyholder account balances. Revenues from such contracts consist of asset-based investment management fees, cost of insurance charges, risk charges, policy administration fees and surrender charges. These fees, which are included in universal life and investment-type product policy fees, are recognized when assessed to the contract holder, except for non-level insurance charges which are deferred by the establishment of an unearned revenue liability and amortized over the expected life of the contracts.

Premiums and policy fees are presented net of reinsurance.

Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles

The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are directly related to the successful acquisition or renewal of insurance contracts are capitalized as deferred policy acquisition costs (“DAC”). These costs mainly consist of commissions and include the portion of employees’ compensation and benefits related to time spent selling, underwriting or processing the issuance of new insurance contracts. All other acquisition-related costs are expensed as incurred.

Value of business acquired (“VOBA”) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity and investment-type contracts in-force as of the acquisition date.

The Company amortizes DAC and VOBA in a manner that approximates a straight-line basis over the expected life of the related contracts. For life insurance contracts, amortization is based on projections of amounts of insurance in-force, while projections of policy counts are used for deferred annuity contracts and expected future benefits payments for income annuities. These assumptions are reviewed at least annually, and if they change significantly, updates are recognized through changes to future amortization. VOBA balances are tested annually to determine if the balance is deemed unrecoverable from expected future profits. All changes in DAC and VOBA balances are recorded to net income.

Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of an existing contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If a modification is considered to have substantially changed the contract, the associated DAC or VOBA is written off immediately through net income and any new acquisition costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed.

The Company also has intangible assets representing deferred sales inducements (“DSI”), which are included in other assets, and unearned revenue liabilities, which are included in other policy-related balances. The Company defers sales inducements and unearned revenue and amortizes the balances using the same methodology and assumptions used to amortize DAC and VOBA.

9

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Adoption of New Accounting Pronouncements

Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASU”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. Except as noted below, there were no significant ASUs adopted during the period ended September 30, 2023.

In March 2022, the FASB issued new guidance on Troubled Debt Restructurings (“TDR”) (ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures). This ASU eliminates TDR recognition and measurement guidance and, instead, requires that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. The Company adopted this guidance on January 1, 2023. This ASU was applied prospectively and did not have a material impact on the consolidated financial statements upon adoption but could change the future recognition and measurement of modified loans and other receivables.

In August 2018, the FASB issued new guidance on long-duration contracts (ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (“LDTI”)). LDTI is effective for fiscal years beginning after January 1, 2023. LDTI resulted in significant changes to the measurement, presentation and disclosure requirements for long-duration insurance contracts. A summary of the most significant changes is provided below:

(1) Guaranteed benefits associated with variable annuity and certain fixed annuity contracts have been classified and presented separately on the consolidated balance sheets as MRBs. MRBs are now measured at estimated fair value through net income and reported separately on the consolidated statements of operations, except for nonperformance risk changes, which will be recognized in OCI.

(2) Cash flow assumptions used to measure LFPBs on traditional long-duration contracts (including term and non-participating whole life insurance and immediate annuities) have been updated on an annual basis using a retrospective method. The resulting remeasurement gain or loss is now reported separately on the consolidated statements of operations along with the remeasurement gain or loss on universal life-type contract liabilities.

(3) The discount rate assumption used to measure the liability for traditional long-duration contracts is now based on an upper-medium grade fixed income yield, updated quarterly, with changes recognized in OCI.

(4) DAC for all insurance products are required to be amortized on a constant-level basis over the expected term of the contracts, using amortization methods that are not a function of revenue or profit emergence. Changes in assumptions used to amortize DAC have been recognized as a revision to future amortization amounts.

(5) There was a significant increase in required disclosures, including disaggregated rollforwards of insurance contract assets and liabilities supplemented by qualitative and quantitative information regarding the cash flows, assumptions, methods and judgements used to measure those balances.

The transition date was January 1, 2021. MRB changes were required to be applied on a retrospective basis, while the changes for insurance liability assumption updates and DAC amortization were applied to existing carrying amounts on the transition date.

The cumulative effect, on an after-tax basis, of the adoption of ASU 2018-12 as of the transition date was a $5.4 billion decrease to retained earnings and a $3.9 billion decrease to accumulated other comprehensive income (loss) (“AOCI”). See Note 2 for more detailed information on the impacts of the ASU to the Company’s financial statements.

10

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

2. ASU 2018-12 Transition

The Company adopted ASU 2018-12 for LFPBs, DAC and other balances amortized on a basis consistent with DAC by applying the guidance to contracts in-force on the basis of their existing carrying amounts at the transition date. The Company adopted ASU 2018-12 for MRBs on a fully retrospective basis.

The effect of transition adjustments on stockholders’ equity at January 1, 2021 due to the adoption of ASU 2018-12 was as follows:

	Retained Earnings (Deficit)		AOCI
	(In millions)
Liability for future policy benefits	$	(436)	$	(2,073)
Market risk benefits and related adjustments	(6,237)		(3,454)
DAC and VOBA	—		520
Reinsurance recoverables	(141)		34
Deferred income tax asset	1,431		1,044
Total	$	(5,383)	$	(3,929)

For LFPBs, the transition adjustment to retained earnings relates to instances where net premiums exceed gross premiums resulting in LFPBs being increased to eliminate the premium deficiency. The premium deficiency primarily relates to structured settlement annuities. The transition adjustment related to AOCI represents the effect of the requirement to discount LFPBs based on an upper-medium grade fixed income rate as well as the removal of amounts previously recorded in AOCI for the effects of unrealized investment gains and losses.

For MRBs, the transition adjustment to AOCI relates to the cumulative effect of changes in the nonperformance risk between contract issue date and transition date. In aggregate, the additional spread applied to the risk-free rate decreased from contract inception to the transition date, which had a negative impact on equity. The remaining difference between the estimated fair value and carrying amount of MRBs at transition, excluding the amounts recorded in AOCI, was recorded as an adjustment to retained earnings as of the transition date.

For DAC and VOBA, the Company removed amounts previously recorded in AOCI for the effect of unrealized investment gains and losses.

For reinsurance, the adjustments to both retained earnings and AOCI were made to align the measurement of reinsurance recoverables with the related LFPBs.

The balances of and changes in LFPBs at January 1, 2021 due to the adoption of ASU 2018-12 were as follows:

	Term and Whole Life Insurance		Income Annuities		Structured Settlement and Pension Risk Transfer Annuities
	(In millions)
Balance at December 31, 2020	$	2,854	$	4,311	$	10,115
Removal of related balances in AOCI	—		(203)		(1,784)
Change in cash flow assumptions	14		(171)		200
Initial recognition of deferred profit liabilities	—		176		217
Change in discount rate assumptions	536		754		2,770
Adjusted balance at January 1, 2021	3,404		4,867		11,518
Less: Reinsurance recoverable	85		29		102
Adjusted balance at January 1, 2021, net of reinsurance	$	3,319	$	4,838	$	11,416

11

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

2. ASU 2018-12 Transition (continued)

The balance of and changes in liabilities classified as MRBs at January 1, 2021 due to the adoption of ASU 2018-12 were as follows:

	Variable Annuities
	(In millions)
Balance at December 31, 2020	$	8,924
Adjustment for the difference between carrying amount and estimated fair value, except for the difference due to nonperformance risk	6,010
Adjustment for cumulative effect of changes in nonperformance risk since issuance	3,454
Adjusted balance at January 1, 2021	18,388
Less: Reinsurance recoverable	169
Adjusted balance at January 1, 2021, net of reinsurance	$	18,219

The balances of and changes in DAC and VOBA on January 1, 2021 due to the adoption of ASU 2018-12 were as follows:

	Variable Annuities		Fixed Rate Annuities		Index-Linked Annuities		Term and Whole Life Insurance		Universal Life Insurance
	(In millions)
DAC:
Balance at December 31, 2020	$	2,440	$	64	$	886	$	527	$	492
Removal of related amounts in AOCI	472		—		—		—		(23)
Adjusted balance at January 1, 2021	$	2,912	$	64	$	886	$	527	$	469
VOBA:
Balance at December 31, 2020	$	363	$	76	$	—	$	8	$	55
Removal of related amounts in AOCI	65		—		—		—		6
Adjusted balance at January 1, 2021	$	428	$	76	$	—	$	8	$	61

The following tables present amounts previously reported in 2022 and 2021, the effect on those amounts of the change due to the adoption of ASU 2018-12 as described in Note 1, and the currently reported amounts in the Unaudited Interim Consolidated Balance Sheets and Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). See Notes 4 and 5 for more information.

	December 31, 2022						December 31, 2021
	As Previously Reported		Effect of Change		As Currently Reported		As Previously Reported		Effect of Change		As Currently Reported
	(In millions)
Total assets	$	225,580	$	(733)	$	224,847	$	259,840	$	2,417	$	262,257
Future policy benefits	$	41,569	$	(10,072)	$	31,497	$	43,807	$	(3,817)	$	39,990
Policyholder account balances	$	74,836	$	(1,309)	$	73,527	$	66,851	$	(1,602)	$	65,249
Market risk benefit liabilities	$	—	$	10,389	$	10,389	$	—	$	16,034	$	16,034
Total liabilities	$	219,542	$	(293)	$	219,249	$	243,633	$	10,174	$	253,807
Retained earnings (deficit)	$	(637)	$	242	$	(395)	$	(642)	$	(3,632)	$	(4,274)
Accumulated other comprehensive income (loss)	$	(5,424)	$	(682)	$	(6,106)	$	4,172	$	(4,125)	$	47
Total equity	$	6,038	$	(440)	$	5,598	$	16,207	$	(7,757)	$	8,450
Total liabilities and equity	$	225,580	$	(733)	$	224,847	$	259,840	$	2,417	$	262,257

12

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

2. ASU 2018-12 Transition (continued)

	Year Ended December 31, 2022						Year Ended December 31, 2021
	As Previously Reported		Effect of Change		As Currently Reported		As Previously Reported		Effect of Change		As Currently Reported
	(In millions)
Universal life and investment-type product policy fees	$	3,141	$	(706)	$	2,435	$	3,636	$	(656)	$	2,980
Net derivative gains (losses)	$	304	$	(896)	$	(592)	$	(2,469)	$	(1,514)	$	(3,983)
Total revenues	$	8,473	$	(1,600)	$	6,873	$	7,142	$	(2,166)	$	4,976
Policyholder benefits and claims	$	4,165	$	(1,972)	$	2,193	$	3,443	$	(697)	$	2,746
Change in market risk benefits	$	—	$	(4,104)	$	(4,104)	$	—	$	(4,134)	$	(4,134)
Total expenses	$	8,645	$	(6,504)	$	2,141	$	7,350	$	(4,383)	$	2,967
Net income (loss)	$	10	$	3,874	$	3,884	$	(103)	$	1,751	$	1,648

3. 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, 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 business reinsured through 100% quota share reinsurance agreements and activities related to funding agreements associated with the Company’s institutional spread margin business.

In connection with the adoption of ASU 2018-12, the Company reclassified direct-to-consumer life insurance that is no longer sold from Corporate & Other to the Life segment. The segment information below reflects the direct-to consumer life insurance in the Life segment for all periods presented.

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.

13

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

3. Segment Information (continued)

The following are significant items excluded from total revenues in calculating adjusted earnings:

•Net investment gains (losses); 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 are significant items excluded from total expenses in calculating adjusted earnings:

•Change in MRBs; and

•Change in fair value of the crediting rate on experience-rated contracts (“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 Company’s adjusted earnings definition and presentation has been updated for all periods presented to reflect the adoption of ASU 2018-12.

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. 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. 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:

	Three Months Ended September 30, 2023
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	393	$	(93)	$	120	$	9	$	429
Provision for income tax expense (benefit)	74		(20)		25		(4)		75
Post-tax adjusted earnings	319		(73)		95		13		354
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		2		2
Less: Preferred stock dividends	—		—		—		26		26
Adjusted earnings	$	319	$	(73)	$	95	$	(15)	326
Adjustments for:
Net investment gains (losses)									(53)
Net derivative gains (losses), excluding investment hedge adjustments of $25									(865)
Change in market risk benefits									1,064
Market value adjustments									15
Provision for income tax (expense) benefit									(34)
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders									$	453
Interest revenue	$	652	$	115	$	300	$	160
Interest expense	$	—	$	—	$	—	$	38

14

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

3. Segment Information (continued)

	Three Months Ended September 30, 2022
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	246	$	(44)	$	(20)	$	(14)	$	168
Provision for income tax expense (benefit)	44		(10)		(4)		(4)		26
Post-tax adjusted earnings	202		(34)		(16)		(10)		142
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		2		2
Less: Preferred stock dividends	—		—		—		25		25
Adjusted earnings	$	202	$	(34)	$	(16)	$	(37)	115
Adjustments for:
Net investment gains (losses)									(45)
Net derivative gains (losses), excluding investment hedge adjustments of $23									(615)
Change in market risk benefits									984
Market value adjustments									20
Provision for income tax (expense) benefit									(71)
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders									$	388
Interest revenue	$	547	$	77	$	168	$	108
Interest expense	$	—	$	—	$	—	$	38

	Nine Months Ended September 30, 2023
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	1,137	$	(75)	$	(35)	$	19	$	1,046
Provision for income tax expense (benefit)	213		(18)		(8)		(14)		173
Post-tax adjusted earnings	924		(57)		(27)		33		873
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		4		4
Less: Preferred stock dividends	—		—		—		77		77
Adjusted earnings	$	924	$	(57)	$	(27)	$	(48)	792
Adjustments for:
Net investment gains (losses)									(213)
Net derivative gains (losses), excluding investment hedge adjustments of $86									(3,312)
Change in market risk benefits									2,170
Market value adjustments									9
Provision for income tax (expense) benefit									282
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders									$	(272)
Interest revenue	$	1,879	$	334	$	870	$	460
Interest expense	$	—	$	—	$	—	$	114

15

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

3. Segment Information (continued)

	Nine Months Ended September 30, 2022
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	1,078	$	75	$	(189)	$	(101)	$	863
Provision for income tax expense (benefit)	202		14		(40)		(34)		142
Post-tax adjusted earnings	876		61		(149)		(67)		721
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		4		4
Less: Preferred stock dividends	—		—		—		78		78
Adjusted earnings	$	876	$	61	$	(149)	$	(149)	639
Adjustments for:
Net investment gains (losses)									(179)
Net derivative gains (losses), excluding investment hedge adjustments of $38									1,293
Change in market risk benefits									2,625
Market value adjustments									90
Provision for income tax (expense) benefit									(803)
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders									$	3,665
Interest revenue	$	1,648	$	352	$	919	$	208
Interest expense	$	—	$	—	$	—	$	114

Total revenues by segment, as well as Corporate & Other, were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Annuities	$	1,214	$	1,091	$	3,630	$	3,422
Life	299		270		915		922
Run-off	413		312		1,241		1,334
Corporate & Other	162		108		456		208
Adjustments	(918)		(660)		(3,525)		1,114
Total	$	1,170	$	1,121	$	2,717	$	7,000

Total assets by segment, as well as Corporate & Other, were as follows at:

	September 30, 2023		December 31, 2022
	(In millions)
Annuities	$	151,734	$	151,192
Life	22,221		22,057
Run-off	27,272		28,436
Corporate & Other	22,289		23,162
Total	$	223,516	$	224,847

16

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Insurance

Liability for Future Policy Benefits

Information regarding LFPBs for non-participating traditional and limited-payment contracts was as follows:

	Nine Months Ended September 30,
	2023									2022
	Term and Whole Life Insurance			Income Annuities			Structured Settlement and Pension Risk Transfer Annuities			Term and Whole Life Insurance			Income Annuities			Structured Settlement and Pension Risk Transfer Annuities
	(Dollars in millions)
Present value of expected net premiums:
Balance, beginning of period	$	2,871		$	—		$	—		$	3,325		$	—		$	—
Beginning balance at original discount rate	3,212			—			—			3,051			—			—
Effect of model refinements	—			—			—			122			—			—
Effect of changes in cash flow assumptions	215			—			—			139			—			—
Effect of actual variances from expected experience	(36)			—			—			90			—			—
Adjusted beginning of period balance	3,391			—			—			3,402			—			—
Issuances	71			—			—			71			—			—
Interest accrual	83			—			—			87			—			—
Net premiums collected	(281)			—			—			(324)			—			—
Ending balance at original discount rate	3,264			—			—			3,236			—			—
Effect of changes in discount rate assumptions	(430)			—			—			(371)			—			—
Balance, end of period	$	2,834		$	—		$	—		$	2,865		$	—		$	—
Present value of expected future policy benefits:
Balance, beginning of period	$	5,279		$	3,512		$	6,793		$	6,426		$	4,333		$	10,171
Beginning balance at original discount rate	5,922			3,897			7,410			5,820			3,865			8,165
Effect of model refinements	—			—			—			135			—			—
Effect of changes in cash flow assumptions	309			—			—			159			—			—
Effect of actual variances from expected experience	(41)			6			(49)			119			(23)			(39)
Adjusted beginning of period balance	6,190			3,903			7,361			6,233			3,842			8,126
Issuances	74			281			—			79			168			—
Interest accrual	162			107			236			167			108			259
Benefit payments	(375)			(296)			(449)			(514)			(267)			(477)
Ending balance at original discount rate	6,051			3,995			7,148			5,965			3,851			7,908
Effect of changes in discount rate assumptions	(867)			(514)			(956)			(712)			(416)			(859)
Balance, end of period	$	5,184		$	3,481		$	6,192		$	5,253		$	3,435		$	7,049
Net liability for future policy benefits, end of period	$	2,350		$	3,481		$	6,192		$	2,388		$	3,435		$	7,049
Less: Reinsurance recoverable, end of period	41			30			—			49			24			69
Net liability for future policy benefits, after reinsurance recoverable	$	2,309		$	3,451		$	6,192		$	2,339		$	3,411		$	6,980
Weighted-average duration of liability	8.8 years			8.3 years			11.6 years			8.5 years			8.4 years			12.7 years
Weighted-average interest accretion rate	3.95		%	3.94		%	4.45		%	3.98		%	3.89		%	4.44		%
Current discount rate	5.87		%	5.87		%	5.91		%	5.46		%	5.44		%	5.46		%
Gross premiums or assessments recognized during period	$	451		$	353		$	—		$	485		$	195		$	—
Expected future gross premiums, undiscounted	$	6,261		$	—		$	—		$	6,842		$	—		$	—
Expected future gross premiums, discounted	$	4,707		$	—		$	—		$	5,065		$	—		$	—
Expected future benefit payments, undiscounted	$	8,378		$	5,663		$	13,909		$	8,264		$	5,448		$	16,721
Expected future benefit payments, discounted	$	6,051		$	3,995		$	7,148		$	5,965		$	3,851		$	7,908

17

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Insurance (continued)

The measurement of LFPBs can be significantly impacted by changes in assumptions for policyholder behavior. As part of the 2023 and 2022 annual actuarial review (“AAR”), the Company updated assumptions regarding mortality and lapses for term and non-participating whole life insurance. The impact from changes in assumptions is presented in effect of changes in cash flow assumptions in the table above.

Information regarding the additional insurance liabilities for universal life-type contracts with secondary guarantees was as follows:

	Nine Months Ended September 30,
	2023			2022
	(Dollars in millions)
Balance, beginning of period	$	6,935		$	7,168
Beginning balance before the effect of unrealized gains and losses	7,175			6,731
Effect of changes in cash flow assumptions	52			(37)
Effect of actual variances from expected experience	75			157
Adjusted beginning of period balance	7,302			6,851
Interest accrual	265			248
Net assessments collected	309			324
Benefit payments	(289)			(369)
Effect of realized capital gains (losses)	—			—
Ending balance before the effect of unrealized gains and losses	7,587			7,054
Effect of unrealized gains and losses	(347)			(83)
Balance, end of period	7,240			6,971
Less: Reinsurance recoverable, end of period	1,409			1,393
Net additional liability, after reinsurance recoverable	$	5,831		$	5,578
Weighted-average duration of liability	6.7 years			6.7 years
Weighted-average interest accretion rate	4.92		%	4.90		%
Gross assessments recognized during period	$	798		$	834

The measurement of liabilities for secondary guarantees can be significantly impacted by changes in the expected general account rate of return, which is driven by the Company’s assumption for long-term treasury yields. The Company’s practice of projecting treasury yields uses a mean reversion approach that assumes that long-term interest rates are less influenced by short-term fluctuations and are only changed when sustained interim deviations are expected. As part of the 2023 AAR, the Company increased the long-term general account earned rate, driven by an increase in the mean reversion rate from 3.50% to 3.75%. The Company also updated assumptions regarding policyholder behavior, including mortality, premium persistency, lapses, withdrawals and maintenance expenses. As part of the 2022 AAR, the Company increased the long-term general account earned rate, driven by an increase in the mean reversion rate from 3.00% to 3.50%. Both period assumption updates are reflected in the table above.

18

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Insurance (continued)

A reconciliation of the net LFPBs for nonparticipating traditional and limited-payment contracts and the additional insurance liabilities for universal life-type contracts with secondary guarantees reported in the preceding rollforward tables to LFPBs on the consolidated balance sheets was as follows at:

	September 30,
	2023		2022
	(In millions)
Liabilities reported in the preceding rollforward tables	$	19,263	$	19,843
Long-term care insurance (1)	5,276		5,632
ULSG liabilities, including liability for profits followed by losses	1,966		2,866
Participating whole life insurance (2)	3,054		2,900
Deferred profit liabilities	459		379
Other	386		396
Total liability for future policy benefits	$	30,404	$	32,016

_______________

(1)Includes liabilities related to fully reinsured individual long-term care insurance. See Note 3.

(2)Participating whole life insurance uses an interest assumption based on the non-forfeiture interest rate, ranging from 3.5% to 4.5%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts, and also includes a liability for terminal dividends. Participating whole life insurance represented 3% of the Company’s life insurance in-force at both September 30, 2023 and 2022, and 40% and 41% of gross traditional life insurance premiums for the nine months ended September 30, 2023 and 2022, respectively.

19

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Insurance (continued)

Information regarding LFPBs for non-participating traditional and limited-payment contracts was as follows:

	Years Ended December 31,
	2022						2021
	Term and Whole Life Insurance		Income Annuities		Structured Settlement and Pension Risk Transfer Annuities		Term and Whole Life Insurance		Income Annuities		Structured Settlement and Pension Risk Transfer Annuities
	(Dollars in millions)
Present value of expected net premiums:
Balance, beginning of year	$	3,325	$	—	$	—	$	3,448	$	—	$	—
Beginning balance at original discount rate	3,051		—		—		2,994		—		—
Effect of model refinements	122		—		—		—		—		—
Effect of changes in cash flow assumptions	137		—		—		70		—		—
Effect of actual variances from expected experience	119		—		—		153		—		—
Adjusted beginning of year balance	3,429		—		—		3,217		—		—
Issuances	93		—		—		113		—		—
Interest accrual	116		—		—		111		—		—
Net premiums collected	(426)		—		—		(390)		—		—
Ending balance at original discount rate	3,212		—		—		3,051		—		—
Effect of changes in discount rate assumptions	(341)		—		—		274		—		—
Balance, end of year	$	2,871	$	—	$	—	$	3,325	$	—	$	—
Present value of expected future policy benefits:
Balance, beginning of year	$	6,426	$	4,333	$	10,171	$	6,852	$	4,691	$	11,301
Beginning balance at original discount rate	5,820		3,865		8,165		5,862		3,938		8,531
Effect of model refinements	135		—		(278)		—		—		—
Effect of changes in cash flow assumptions	157		56		(157)		70		(41)		(41)
Effect of actual variances from expected experience	155		(22)		(23)		153		(6)		(16)
Adjusted beginning of year balance	6,267		3,899		7,707		6,085		3,891		8,474
Issuances	101		224		—		128		198		—
Interest accrual	222		146		327		222		150		359
Benefit payments	(668)		(372)		(624)		(615)		(374)		(668)
Ending balance at original discount rate	5,922		3,897		7,410		5,820		3,865		8,165
Effect of changes in discount rate assumptions	(643)		(385)		(617)		606		468		2,006
Balance, end of year	$	5,279	$	3,512	$	6,793	$	6,426	$	4,333	$	10,171
Net liability for future policy benefits, end of year	$	2,408	$	3,512	$	6,793	$	3,101	$	4,333	$	10,171
Less: Reinsurance recoverable, end of year	45		24		68		64		27		93
Net liability for future policy benefits, after reinsurance recoverable	$	2,363	$	3,488	$	6,725	$	3,037	$	4,306	$	10,078

20

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Insurance (continued)

Policyholder Account Balances

Information regarding policyholder account balances was as follows:

	Universal Life Insurance			Variable Annuities (1)			Index-linked Annuities			Fixed Rate Annuities			ULSG			Company-Owned Life Insurance (1)
	(Dollars in millions)
Nine Months Ended September 30, 2023
Balance, beginning of period	$	2,658		$	4,908		$	33,897		$	14,274		$	5,307		$	641
Premiums and deposits	171			63			5,314			1,983			501			—
Surrenders and withdrawals	(140)			(486)			(2,588)			(1,518)			(17)			—
Benefit payments	(52)			(89)			(177)			(285)			(67)			(6)
Net transfers from (to) separate account	42			8			—			—			—			—
Interest credited	33			98			299			357			165			22
Policy charges	(167)			(19)			(6)			—			(764)			(7)
Changes related to embedded derivatives	—			—			1,880			—			—			—
Balance, end of period	$	2,545		$	4,483		$	38,619		$	14,811		$	5,125		$	650
Weighted-average crediting rate (2)	1.27		%	2.09		%	1.02		%	2.43		%	3.17		%	3.41		%
Nine Months Ended September 30, 2022
Balance, beginning of period	$	2,694		$	4,743		$	32,000		$	11,849		$	5,569		$	646
Premiums and deposits	164			127			5,081			2,181			529			—
Surrenders and withdrawals	(69)			(332)			(1,578)			(439)			(26)			—
Benefit payments	(50)			(89)			(123)			(255)			(58)			(5)
Net transfers from (to) separate account	38			174			—			—			—			(13)
Interest credited	53			120			301			243			152			16
Policy charges	(167)			(20)			(5)			—			(786)			(5)
Changes related to embedded derivatives	—			—			(4,086)			—			—			—
Balance, end of period	$	2,663		$	4,723		$	31,590		$	13,579		$	5,380		$	639
Weighted-average crediting rate (2)	1.98		%	2.53		%	0.84		%	1.98		%	2.77		%	2.47		%

_______________

(1)Includes liabilities related to separate account products where the contract holder elected a general account investment option.

(2)Excludes the effects of embedded derivatives related to index-linked crediting rates.

A reconciliation of policyholder account balances reported in the preceding rollforward table to the liability for policyholder account balances on the consolidated balance sheets was as follows at:

	September 30,
	2023		2022
	(In millions)
Policyholder account balances reported in the preceding rollforward table	$	66,233	$	58,574
Funding agreements classified as investment contracts	11,052		9,959
Other investment contract liabilities	1,086		1,216
Total policyholder account balances	$	78,371	$	69,749

21

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Insurance (continued)

The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums was as follows at:

Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 to 50 Basis Points Above		51 to 150 Basis Points Above		Greater than 150 Basis Points Above		Total
	(In millions)
September 30, 2023
Annuities (1):
Less than 2.00%	$	723	$	254	$	474	$	7,185	$	8,636
2.00% to 3.99%	9,730		117		227		67		10,141
Greater than 3.99%	904		—		—		—		904
Total	$	11,357	$	371	$	701	$	7,252	$	19,681
Life insurance (2) (3):
Less than 2.00%	$	—	$	—	$	—	$	216	$	216
2.00% to 3.99%	—		488		49		136		673
Greater than 3.99%	1,614		—		—		—		1,614
Total	$	1,614	$	488	$	49	$	352	$	2,503
ULSG (3):
Less than 2.00%	$	—	$	—	$	—	$	—	$	—
2.00% to 3.99%	1,159		1,506		1,680		257		4,602
Greater than 3.99%	513		—		—		—		513
Total	$	1,672	$	1,506	$	1,680	$	257	$	5,115
December 31, 2022
Annuities (1):
Less than 2.00%	$	861	$	317	$	369	$	5,821	$	7,368
2.00% to 3.99%	6,119		4,872		596		10		11,597
Greater than 3.99%	525		—		—		—		525
Total	$	7,505	$	5,189	$	965	$	5,831	$	19,490
Life insurance (2) (3):
Less than 2.00%	$	—	$	—	$	—	$	172	$	172
2.00% to 3.99%	—		510		87		154		751
Greater than 3.99%	1,657		—		—		—		1,657
Total	$	1,657	$	510	$	87	$	326	$	2,580
ULSG (3):
Less than 2.00%	$	—	$	—	$	—	$	—	$	—
2.00% to 3.99%	1,225		1,581		1,729		266		4,801
Greater than 3.99%	527		—		—		—		527
Total	$	1,752	$	1,581	$	1,729	$	266	$	5,328

_______________

(1)Includes policyholder account balances for fixed rate annuities and the fixed account portion of variable annuities.

(2)Includes policyholder account balances for retained asset accounts, universal life policies and the fixed account portion of universal variable life insurance policies.

(3)Amounts are gross of policy loans.

22

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Insurance (continued)

Market Risk Benefits

Information regarding MRB assets and liabilities associated with variable annuities was as follows:

	Nine Months Ended September 30,				Years Ended December 31,
	2023		2022		2022		2021
	(Dollars in millions)
Balance, beginning of period	$	9,974	$	15,698	$	15,698	$	18,388
Balance, beginning of period, before effect of changes in nonperformance risk	8,230		11,611		11,611		14,934
Decrements	(114)		19		16		(68)
Effect of changes in future expected assumptions	259		210		210		41
Effect of actual different from expected experience	178		(332)		(48)		(86)
Effect of changes in interest rates	(2,360)		(8,393)		(8,394)		(1,829)
Effect of changes in fund returns	(669)		5,607		3,807		(2,578)
Issuances	(9)		(29)		(47)		(96)
Effect of changes in risk margin	(52)		(120)		(152)		(128)
Aging of the block and other	1,025		946		1,227		1,421
Balance, end of period, before effect of changes in nonperformance risk	6,488		9,519		8,230		11,611
Effect of changes in nonperformance risk	1,690		1,580		1,744		4,087
Balance, end of period	8,178		11,099		9,974		15,698
Less: Reinsurance recoverable, end of period	35		76		71		118
Balance, end of period, net of reinsurance (1)	$	8,143	$	11,023	$	9,903	$	15,580
Weighted-average attained age of contract holder	72.6 years		71.6 years		71.8 years		71.1 years

_______________

(1)Amounts represent the sum of MRB assets and MRB liabilities presented on the consolidated balance sheets at September 30, 2023 and 2022, with the exception of ($7) million and $2 million, respectively, of index-linked annuities not included in this table, and at December 31, 2022 and 2021, with the exception of $3 million and $5 million, respectively, of index-linked annuities not included in this table.

Market conditions, including, but not limited to, changes in interest rates, equity indices, market volatility and variations in actuarial assumptions, including policyholder behavior, mortality and risk margins related to non-capital markets inputs, as well as changes in nonperformance risk, may result in significant fluctuations in the estimated fair value of the guarantees. As part of the AAR in 2023 and 2022, the Company updated assumptions regarding policyholder behavior, mortality, separate account fund allocations and volatility, which are reflected in the table above.

23

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Insurance (continued)

Separate Accounts

Information regarding separate account liabilities was as follows:

	Nine Months Ended September 30,
	2023						2022
	Variable Annuities		Universal Life Insurance		Company-Owned Life Insurance		Variable Annuities		Universal Life Insurance		Company-Owned Life Insurance
	(In millions)
Balance, beginning of period	$	77,653	$	5,218	$	1,932	$	105,023	$	6,862	$	2,384
Premiums and deposits	599		122		—		1,021		131		—
Surrenders and withdrawals	(4,603)		(138)		(11)		(4,684)		(131)		(11)
Benefit payments	(1,101)		(51)		(21)		(1,043)		(52)		(25)
Investment performance	4,175		440		174		(23,515)		(1,706)		(457)
Policy charges	(1,638)		(152)		(37)		(1,757)		(151)		(51)
Net transfers from (to) general account	(8)		(42)		—		(174)		(38)		13
Other	(5)		—		(1)		46		(1)		2
Balance, end of period	$	75,072	$	5,397	$	2,036	$	74,917	$	4,914	$	1,855

A reconciliation of separate account liabilities reported in the preceding rollforward table to the separate account liabilities balance on the consolidated balance sheets was as follows at:

	September 30,
	2023		2022
	(In millions)
Separate account liabilities reported in the preceding rollforward table	$	82,505	$	81,686
Variable income annuities	152		137
Pension risk transfer annuities	18		15
Total separate account liabilities	$	82,675	$	81,838

The aggregate estimated fair value of assets, by major investment asset category, supporting separate accounts was as follows at:

	September 30, 2023		December 31, 2022
	(In millions)
Equity securities	$	82,419	$	84,667
Fixed maturity securities	244		278
Cash and cash equivalents	6		9
Other assets	6		11
Total aggregate estimated fair value of assets	$	82,675	$	84,965

24

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

4. Insurance (continued)

Net Amount at Risk and Cash Surrender Values

Information regarding the net amount at risk and cash surrender value for insurance products was as follows at:

	Universal Life Insurance		Variable Annuities		Index-linked Annuities		Fixed Rate Annuities		ULSG		Company-Owned Life Insurance
	(In millions)
September 30, 2023
Account balances reported in the preceding rollforward tables:
Policyholder account balances	$	2,545	$	4,483	$	38,619	$	14,811	$	5,125	$	650
Separate account liabilities	5,397		75,072		—		—		—		2,036
Total account balances	$	7,942	$	79,555	$	38,619	$	14,811	$	5,125	$	2,686
Net amount at risk	$	36,238	$	16,127	N/A		N/A		$	69,277	$	2,625
Cash surrender value	$	7,346	$	79,155	$	36,164	$	14,189	$	6,121	$	2,469
September 30, 2022
Account balances reported in the preceding rollforward tables:
Policyholder account balances	$	2,663	$	4,723	$	31,590	$	13,579	$	5,380	$	639
Separate account liabilities	4,914		74,917		—		—		—		1,855
Total account balances	$	7,577	$	79,640	$	31,590	$	13,579	$	5,380	$	2,494
Net amount at risk	$	38,783	$	18,461	N/A		N/A		$	71,142	$	3,413
Cash surrender value	$	6,918	$	79,523	$	28,922	$	12,748	$	6,315	$	2,284

Products may contain both separate account and general account fund options; accordingly, net amount at risk and cash surrender value reported in the table above relate to the total account balance for each respective product grouping.

25

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

5. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles

Deferred Policy Acquisition Costs and Value of Business Acquired

Information regarding DAC and VOBA was as follows:

	Variable Annuities		Fixed Rate Annuities		Index-linked Annuities		Term and Whole Life Insurance		Universal Life Insurance
	(In millions)
Nine Months Ended September 30, 2023
DAC:
Balance, beginning of period	$	2,508	$	107	$	1,213	$	405	$	392
Capitalization	29		9		255		1		9
Amortization	(185)		(8)		(167)		(40)		(35)
Balance, end of period	2,352		108		1,301		366		366
VOBA:
Balance, beginning of period	341		65		—		5		48
Amortization	(24)		(4)		—		(1)		(4)
Balance, end of period	317		61		—		4		44
Total DAC and VOBA:
Balance, end of period	$	2,669	$	169	$	1,301	$	370	$	410
Nine Months Ended September 30, 2022
DAC:
Balance, beginning of period	$	2,718	$	89	$	1,081	$	462	$	431
Capitalization	48		20		252		—		8
Amortization	(200)		(10)		(145)		(45)		(38)
Balance, end of period	2,566		99		1,188		417		401
VOBA:
Balance, beginning of period	377		70		—		6		54
Amortization	(27)		(4)		—		(1)		(4)
Balance, end of period	350		66		—		5		50
Total DAC and VOBA:
Balance, end of period	$	2,916	$	165	$	1,188	$	422	$	451

26

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

5. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles (continued)

	Variable Annuities		Fixed Rate Annuities		Index-linked Annuities		Term and Whole Life Insurance		Universal Life Insurance
	(In millions)
DAC:
Adjusted balance at January 1, 2021 (1)	$	2,912	$	64	$	886	$	527	$	469
Capitalization	90		37		354		(3)		16
Amortization	(284)		(12)		(159)		(62)		(54)
Balance at December 31, 2021	2,718		89		1,081		462		431
Capitalization	55		30		330		(1)		11
Amortization	(265)		(12)		(198)		(56)		(50)
Balance at December 31, 2022	$	2,508	$	107	$	1,213	$	405	$	392
VOBA:
Adjusted balance at January 1, 2021 (1)	$	428	$	76	$	—	$	8	$	61
Amortization	(51)		(6)		—		(2)		(7)
Balance at December 31, 2021	377		70		—		6		54
Amortization	(36)		(5)		—		(1)		(6)
Balance at December 31, 2022	341		65		—		5		48
Total DAC and VOBA:
Balance at December 31, 2022	$	2,849	$	172	$	1,213	$	410	$	440
Balance at December 31, 2021	$	3,095	$	159	$	1,081	$	468	$	485

_______________

(1)Includes an adjustment to eliminate balances included in AOCI related to the adoption of ASU 2018-12 (see Note 2).

Deferred Sales Inducements

Information regarding DSI, included in other assets, was as follows:

	Nine Months Ended September 30,
	2023				2022
	Variable Annuities		Fixed Rate Annuities		Variable Annuities		Fixed Rate Annuities
	(In millions)
Balance, beginning of period	$	245	$	9	$	272	$	10
Amortization	(19)		(1)		(21)		(1)
Balance, end of period	$	226	$	8	$	251	$	9

Unearned Revenue

Information regarding unearned revenue, included in other policy-related balances, was as follows:

	Nine Months Ended September 30,
	2023						2022
	Universal Life Insurance		ULSG		Variable Annuities		Universal Life Insurance		ULSG		Variable Annuities
	(In millions)
Balance, beginning of period	$	356	$	488	$	74	$	358	$	344	$	80
Capitalization	29		132		—		29		137		1
Amortization	(29)		(36)		(6)		(30)		(26)		(6)
Balance, end of period	$	356	$	584	$	68	$	357	$	455	$	75

27

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Investments

See Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report for a description of the Company’s accounting policies for investments and the fair value hierarchy for investments and the related valuation methodologies.

Fixed Maturity Securities Available-for-sale

Fixed Maturity Securities by Sector

Fixed maturity securities by sector were as follows at:

	September 30, 2023										December 31, 2022
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized				Estimated Fair Value		Amortized Cost		Allowance for Credit Losses		Gross Unrealized				Estimated Fair Value
					Gains		Losses								Gains		Losses
	(In millions)
U.S. corporate	$	38,294	$	14	$	84	$	5,454	$	32,910	$	36,926	$	1	$	203	$	4,521	$	32,607
Foreign corporate	12,709		—		20		2,051		10,678		12,471		1		38		1,932		10,576
U.S. government and agency	8,640		—		34		872		7,802		8,318		—		300		602		8,016
RMBS	8,235		6		31		1,209		7,051		8,431		2		44		945		7,528
CMBS	7,112		2		1		803		6,308		7,324		3		—		710		6,611
ABS	6,294		—		12		192		6,114		5,652		—		3		296		5,359
State and political subdivision	4,010		—		64		470		3,604		4,074		—		125		400		3,799
Foreign government	1,079		—		20		133		966		1,148		—		39		106		1,081
Total fixed maturity securities	$	86,373	$	22	$	266	$	11,184	$	75,433	$	84,344	$	7	$	752	$	9,512	$	75,577

The Company held non-income producing fixed maturity securities with an estimated fair value of $12 million at September 30, 2023. The Company did not hold non-income producing fixed maturity securities at December 31, 2022.

Maturities of Fixed Maturity Securities

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at September 30, 2023:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Securities (1)		Total Fixed Maturity Securities
	(In millions)
Amortized cost	$	2,207	$	16,877	$	15,314	$	30,334	$	21,641	$	86,373
Estimated fair value	$	2,163	$	15,977	$	13,185	$	24,635	$	19,473	$	75,433

_______________

(1)Structured securities include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”).

Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity.

28

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Investments (continued)

Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector

The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at:

	September 30, 2023								December 31, 2022
	Less than 12 Months				12 Months or Greater				Less than 12 Months				12 Months or Greater
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(Dollars in millions)
U.S. corporate	$	8,766	$	881	$	21,485	$	4,573	$	24,509	$	3,351	$	3,979	$	1,170
Foreign corporate	2,032		164		8,039		1,887		8,260		1,413		1,601		519
U.S. government and agency	3,098		175		3,395		697		3,121		265		1,147		337
RMBS	1,163		115		5,398		1,094		4,731		497		2,246		448
CMBS	1,425		169		4,681		634		5,589		543		970		167
ABS	1,336		18		3,515		174		3,347		159		1,733		137
State and political subdivision	1,116		120		1,399		350		2,041		317		247		83
Foreign government	200		14		575		119		777		99		21		7
Total fixed maturity securities	$	19,136	$	1,656	$	48,487	$	9,528	$	52,375	$	6,644	$	11,944	$	2,868
Total number of securities in an unrealized loss position	2,938				7,027				7,309				2,049

Allowance for Credit Losses for Fixed Maturity Securities

Evaluation and Measurement Methodologies

For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in OCI.

Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses).

Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses.

Accrued interest receivables are presented separate from the amortized cost basis of fixed maturity securities. An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income. The accrued interest receivable on fixed maturity securities totaled $689 million and $602 million at September 30, 2023 and December 31, 2022, respectively, and is included in accrued investment income.

29

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Investments (continued)

Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”). To determine if the credit deterioration experienced since origination is more than insignificant, both (i) the extent of the credit deterioration and (ii) any rating agency downgrades are evaluated. For securities categorized as PCD assets, the present value of cash flows expected to be collected from the security are compared to the par value of the security. If the present value of cash flows expected to be collected is less than the par value, credit losses are embedded in the purchase price of the PCD asset. In this situation, both an allowance for credit losses and amortized cost gross-up is recorded, limited by the amount that the estimated fair value is less than the grossed-up amortized cost basis. Any difference between the purchase price and the present value of cash flows is amortized or accreted into net investment income over the life of the PCD asset. Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities.

Current Period Evaluation

Based on the Company’s current evaluation of its fixed maturity securities in an unrealized loss position and the current intent or requirement to sell, the Company recorded an allowance for credit losses of $22 million, relating to 24 securities at September 30, 2023. Management concluded that for all other fixed maturity securities in an unrealized loss position, the unrealized loss was not due to issuer-specific credit-related factors and as a result was recognized in OCI. Where unrealized losses have not been recognized into income, it is primarily because the securities’ bond issuer(s) are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in estimated fair value is largely due to changes in interest rates and non-issuer specific credit spreads. These issuers continued to make timely principal and interest payments and the estimated fair value is expected to recover as the securities approach maturity.

Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector

The changes in the allowance for credit losses by sector were as follows:

	U.S. Corporate		RMBS		Foreign Corporate		CMBS		Total
	(In millions)
Nine Months Ended September 30, 2023
Balance, beginning of period	$	1	$	2	$	1	$	3	$	7
Allowance on securities where credit losses were not previously recorded	14		4		—		—		18
Reductions for securities sold	(1)		—		—		(1)		(2)
Change in allowance on securities with an allowance recorded in a previous period	—		—		—		—		—
Write-offs charged against allowance (1)	—		—		(1)		—		(1)
Balance, end of period	$	14	$	6	$	—	$	2	$	22
Nine Months Ended September 30, 2022
Balance, beginning of period	$	2	$	—	$	7	$	2	$	11
Allowance on securities where credit losses were not previously recorded	—		1		—		—		1
Reductions for securities sold	(1)		—		—		—		(1)
Change in allowance on securities with an allowance recorded in a previous period	—		1		—		—		1
Write-offs charged against allowance (1)	—		—		(7)		—		(7)
Balance, end of period	$	1	$	2	$	—	$	2	$	5

_______________

(1)The Company recorded total write-offs of $8 million and $10 million for the nine months ended September 30, 2023 and 2022, respectively.

30

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Investments (continued)

Mortgage Loans

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:

	September 30, 2023				December 31, 2022
	Carrying Value		% of Total		Carrying Value		% of Total
	(Dollars in millions)
Commercial	$	13,307	58.6	%	$	13,574	59.2	%
Agricultural	4,461		19.7		4,365		19.0
Residential	5,051		22.3		5,116		22.3
Total mortgage loans (1)	22,819		100.6		23,055		100.5
Allowance for credit losses	(137)		(0.6)		(119)		(0.5)
Total mortgage loans, net	$	22,682	100.0	%	$	22,936	100.0	%

_______________

(1)Purchases of mortgage loans from third parties were $224 million and $255 million for the three months and nine months ended September 30, 2023, respectively, and $387 million and $1.6 billion for the three months and nine months ended September 30, 2022, respectively, and were primarily comprised of residential mortgage loans.

Allowance for Credit Losses for Mortgage Loans

Evaluation and Measurement Methodologies

The allowance for credit losses is a valuation account that is deducted from the mortgage loan’s amortized cost basis to present the net amount expected to be collected on the mortgage loan. The loan balance, or a portion of the loan balance, is written-off against the allowance when management believes this amount is uncollectible.

Accrued interest receivables are presented separate from the amortized cost basis of mortgage loans. An allowance for credit losses is generally not estimated on an accrued interest receivable, rather when a loan is placed in nonaccrual status the associated accrued interest receivable balance is written off with a corresponding reduction to net investment income. The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $118 million and $115 million at September 30, 2023 and December 31, 2022, respectively.

The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two-years is used with an input reversion period of one-year.

Mortgage loans are evaluated in each of the three portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity. The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, modifications, foreclosure probable loans, and loans with dissimilar risk characteristics.

31

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Investments (continued)

Mortgage loans are also evaluated to determine if they qualify as PCD assets. To determine if the credit deterioration experienced since origination is more than insignificant, the extent of credit deterioration is evaluated. All re-performing/modified loan (“RPL”) pools purchased after December 31, 2019 are determined to have been acquired with evidence of more than insignificant credit deterioration since origination and are classified as PCD assets. RPLs are pools of residential mortgage loans acquired at a discount or premium which have both credit and non-credit components. For PCD mortgage loans, the allowance for credit losses is determined using a similar methodology described above, except the loss-rate is determined at the pool level instead of the individual loan level. The initial allowance for credit losses, determined on a collective basis, is then allocated to the individual loans. The initial amortized cost of the loan is grossed-up to reflect the sum of the loan’s purchase price and allowance for credit losses. The difference between the grossed-up amortized cost basis and the par value of the loan is a non-credit discount or premium, which is accreted or amortized into net investment income over the remaining life of the loan. Any subsequent PCD mortgage loan allowance for credit losses is evaluated in a manner similar to the process described above for each of the three portfolio segments.

Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment

The changes in the allowance for credit losses by portfolio segment were as follows:

	Commercial		Agricultural		Residential		Total
	(In millions)
Nine Months Ended September 30, 2023
Balance, beginning of period	$	49	$	15	$	55	$	119
Current period provision	22		1		—		23
Charge-offs, net of recoveries	(4)		(1)		—		(5)
Balance, end of period	$	67	$	15	$	55	$	137
Nine Months Ended September 30, 2022
Balance, beginning of period	$	67	$	12	$	44	$	123
Current period provision	1		3		(5)		(1)
Charge-offs, net of recoveries	(23)		—		—		(23)
Balance, end of period	$	45	$	15	$	39	$	99

32

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Investments (continued)

Credit Quality of Mortgage Loans by Portfolio Segment

The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at:

	2023		2022		2021		2020		2019		Prior		Total
	(In millions)
September 30, 2023
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%	$	161	$	1,876	$	2,515	$	224	$	1,289	$	2,826	$	8,891
65% to 75%	—		529		650		177		269		1,195		2,820
76% to 80%	—		12		50		39		209		508		818
Greater than 80%	—		—		—		—		95		683		778
Total commercial mortgage loans	161		2,417		3,215		440		1,862		5,212		13,307
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%	160		574		1,138		459		507		1,334		4,172
65% to 75%	—		127		107		6		31		18		289
Greater than 80%	—		—		—		—		—		—		—
Total agricultural mortgage loans	160		701		1,245		465		538		1,352		4,461
Residential mortgage loans
Performing	99		1,274		1,693		149		208		1,543		4,966
Nonperforming	—		20		20		1		2		42		85
Total residential mortgage loans	99		1,294		1,713		150		210		1,585		5,051
Total	$	420	$	4,412	$	6,173	$	1,055	$	2,610	$	8,149	$	22,819

	2022		2021		2020		2019		2018		Prior		Total
	(In millions)
December 31, 2022
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%	$	1,916	$	2,819	$	405	$	1,493	$	888	$	3,627	$	11,148
65% to 75%	503		354		—		271		367		425		1,920
76% to 80%	—		18		40		90		65		48		261
Greater than 80%	—		—		—		25		57		163		245
Total commercial mortgage loans	2,419		3,191		445		1,879		1,377		4,263		13,574
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%	532		1,163		420		496		643		740		3,994
65% to 75%	148		90		59		56		1		16		370
Greater than 80%	—		—		—		—		1		—		1
Total agricultural mortgage loans	680		1,253		479		552		645		756		4,365
Residential mortgage loans
Performing	1,266		1,745		167		215		168		1,491		5,052
Nonperforming	4		8		—		2		1		49		64
Total residential mortgage loans	1,270		1,753		167		217		169		1,540		5,116
Total	$	4,369	$	6,197	$	1,091	$	2,648	$	2,191	$	6,559	$	23,055

33

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Investments (continued)

The loan-to-value ratio is a measure commonly used to assess the quality of commercial and agricultural mortgage loans. The loan-to-value ratio compares the amount of the loan to the estimated fair value of the underlying property collateralizing the loan and is commonly expressed as a percentage. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. Performing status is a measure commonly used to assess the quality of residential mortgage loans. A loan is considered performing when the borrower makes consistent and timely payments.

The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at:

	September 30, 2023				December 31, 2022
	Amortized Cost		% of Total		Amortized Cost		% of Total
	(Dollars in millions)
Debt-service coverage ratios:
Greater than 1.20x	$	12,276	92.2	%	$	12,157	89.6	%
1.00x - 1.20x	540		4.1		590		4.3
Less than 1.00x	491		3.7		827		6.1
Total	$	13,307	100.0	%	$	13,574	100.0	%

The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios less than 1.00 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt-service coverage ratio greater than 1.00 times indicates an excess of net operating income over the debt-service payments.

Past Due Mortgage Loans by Portfolio Segment

The Company has a high-quality, well-performing mortgage loan portfolio, with over 99% of all mortgage loans classified as performing at both September 30, 2023 and December 31, 2022. Delinquency is defined consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days; and agricultural mortgage loans — 90 days.

The aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at:

	September 30, 2023								December 31, 2022
	Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total
	(In millions)
Current	$	13,290	$	4,439	$	4,890	$	22,619	$	13,574	$	4,346	$	5,041	$	22,961
30-59 days past due	—		—		76		76		—		—		11		11
60-89 days past due	—		—		30		30		—		—		16		16
90-179 days past due	—		—		23		23		—		3		31		34
180+ days past due	17		22		32		71		—		16		17		33
Total	$	13,307	$	4,461	$	5,051	$	22,819	$	13,574	$	4,365	$	5,116	$	23,055

34

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Investments (continued)

Mortgage Loans in Nonaccrual Status by Portfolio Segment

Mortgage loans are placed in a nonaccrual status if there are concerns regarding collectability of future payments or the loan is past due, unless the past due loan is well collateralized.

The amortized cost of mortgage loans in a nonaccrual status by portfolio segment was as follows at:

	Commercial		Agricultural		Residential (1)		Total
	(In millions)
September 30, 2023	$	17	$	—	$	85	$	102
December 31, 2022	$	11	$	3	$	64	$	78

_______________

(1)The Company had no mortgage loans in nonaccrual status for which there was no related allowance for credit losses at both September 30, 2023 and December 31, 2022.

Current period investment income on mortgage loans in nonaccrual status was $1 million for both the nine months ended September 30, 2023 and 2022.

Other Invested Assets

Over 75% of other invested assets is comprised of freestanding derivatives with positive estimated fair values. See Note 7 for information about freestanding derivatives with positive estimated fair values. Other invested assets also includes the Company’s investment in company-owned life insurance, Federal Home Loan Bank (“FHLB”) stock, tax credit and renewable energy partnerships and leveraged leases.

Net Unrealized Investment Gains (Losses)

Unrealized investment gains (losses) on fixed maturity securities and the effect on future policy benefits, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI.

The components of net unrealized investment gains (losses), included in AOCI, were as follows at:

	September 30, 2023		December 31, 2022
	(In millions)
Fixed maturity securities	$	(10,918)	$	(8,760)
Derivatives	509		638
Other	(8)		3
Subtotal	(10,417)		(8,119)
Amounts allocated from:
Future policy benefits	1,290		917
Deferred income tax benefit (expense)	1,917		1,512
Net unrealized investment gains (losses)	$	(7,210)	$	(5,690)

35

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Investments (continued)

The changes in net unrealized investment gains (losses) were as follows:

	Nine Months Ended September 30, 2023
	(In millions)
Balance at December 31, 2022	$	(5,690)
Unrealized investment gains (losses) during the period	(2,298)
Unrealized investment gains (losses) relating to:
Future policy benefits	373
Deferred income tax benefit (expense)	405
Balance at September 30, 2023	$	(7,210)
Change in net unrealized investment gains (losses)	$	(1,520)

Concentrations of Credit Risk

There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at both September 30, 2023 and December 31, 2022.

Securities Lending

Elements of the securities lending program are presented below at:

	September 30, 2023		December 31, 2022
	(In millions)
Securities on loan: (1)
Amortized cost	$	3,620	$	3,995
Estimated fair value	$	3,093	$	3,638
Cash collateral received from counterparties (2)	$	3,171	$	3,731
Reinvestment portfolio — estimated fair value	$	3,051	$	3,603

_______________

(1)Included in fixed maturity securities.

(2)Included in payables for collateral under securities loaned and other transactions.

The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at:

	September 30, 2023								December 31, 2022
	Open (1)		1 Month or Less		1 to 6 Months		Total		Open (1)		1 Month or Less		1 to 6 Months		Total
	(In millions)
U.S. government and agency	$	714	$	1,064	$	996	$	2,774	$	640	$	1,527	$	984	$	3,151
U.S. corporate	—		253		27		280		2		410		—		412
Foreign corporate	—		99		8		107		—		152		—		152
Foreign government	—		4		6		10		—		16		—		16
Total	$	714	$	1,420	$	1,037	$	3,171	$	642	$	2,105	$	984	$	3,731

_______________

(1)The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral.

36

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Investments (continued)

If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized in normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at September 30, 2023 was $699 million, primarily comprised of U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement.

The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including agency RMBS, ABS, U.S. government and agency securities, U.S. and foreign corporate securities, non-agency RMBS and CMBS) with 58% invested in U.S. government and agency securities, agency RMBS and cash and cash equivalents at September 30, 2023. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company.

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at:

	September 30, 2023		December 31, 2022
	(In millions)
Invested assets on deposit (regulatory deposits) (1)	$	7,863	$	7,999
Invested assets held in trust (reinsurance agreements) (2)	5,536		5,621
Invested assets pledged as collateral (3)	14,260		13,920
Total invested assets on deposit, held in trust and pledged as collateral	$	27,659	$	27,540

_______________

(1)The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $94 million and $21 million of the assets on deposit represents restricted cash and cash equivalents at September 30, 2023 and December 31, 2022, respectively.

(2)The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $228 million and $240 million of the assets held in trust balance represents restricted cash and cash equivalents at September 30, 2023 and December 31, 2022, respectively.

(3)The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report) and derivative transactions (see Note 7).

See “— Securities Lending” for information regarding securities on loan. In addition, the Company’s investment in FHLB common stock, which is considered restricted until redeemed by the issuer, was $247 million and $201 million at redemption value at September 30, 2023 and December 31, 2022, respectively.

Variable Interest Entities

A variable interest entity (“VIE”) is a legal entity that does not have sufficient equity at risk to finance its activities or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity.

The Company enters into various arrangements with VIEs in the normal course of business and has invested in legal entities that are VIEs. VIEs are consolidated when it is determined that the Company is the primary beneficiary. A primary beneficiary is the variable interest holder in a VIE with both (i) the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In addition, the evaluation of whether a legal entity is a VIE and if the Company is a primary beneficiary includes a review of the capital structure of the VIE, the related contractual relationships and terms, the nature of the operations and purpose of the VIE, the nature of the VIE interests issued and the Company’s involvement with the entity.

37

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Investments (continued)

There were no material VIEs for which the Company has concluded that it is the primary beneficiary at either September 30, 2023 or December 31, 2022.

The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at:

	September 30, 2023				December 31, 2022
	Carrying Amount		Maximum Exposure to Loss		Carrying Amount		Maximum Exposure to Loss
	(In millions)
Fixed maturity securities	$	14,940	$	16,780	$	15,896	$	17,471
Limited partnerships and LLCs	4,358		5,544		4,136		5,491
Total	$	19,298	$	22,324	$	20,032	$	22,962

The Company’s investments in unconsolidated VIEs are described below.

Fixed Maturity Securities

The Company invests in U.S. corporate bonds, foreign corporate bonds and Structured Securities issued by VIEs. The Company is not obligated to provide any financial or other support to these VIEs, other than the original investment. The Company’s involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer, or investment manager, which are generally viewed as having the power to direct the activities that most significantly impact the economic performance of the VIE, nor does the Company function in any of these roles. The Company does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity; as a result, the Company has determined it is not the primary beneficiary, or consolidator, of the VIE. The Company’s maximum exposure to loss on these fixed maturity securities is limited to the amortized cost of these investments. See “— Fixed Maturity Securities Available-for-sale” for information on these securities.

Limited Partnerships and LLCs

The Company holds investments in certain limited partnerships and LLCs which are VIEs. These ventures include limited partnerships, LLCs, private equity funds, and, to a lesser extent, tax credit and renewable energy partnerships. The Company is not considered the primary beneficiary, or consolidator, when its involvement takes the form of a limited partner interest and is restricted to a role of a passive investor, as a limited partner’s interest does not provide the Company with any substantive kick-out or participating rights, nor does it provide the Company with the power to direct the activities of the fund. The Company’s maximum exposure to loss on these investments is limited to: (i) the amount invested in debt or equity of the VIE and (ii) commitments to the VIE, as described in Note 13.

38

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Investments (continued)

Net Investment Income

The components of net investment income were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Investment income:
Fixed maturity securities	$	897	$	787	$	2,602	$	2,247
Equity securities	1		1		2		2
Mortgage loans	240		208		716		616
Policy loans	17		16		50		48
Limited partnerships and LLCs (1)	53		(106)		129		257
Cash, cash equivalents and short-term investments	61		22		166		29
Other	24		20		66		52
Total investment income	1,293		948		3,731		3,251
Less: Investment expenses	91		71		274		162
Net investment income	$	1,202	$	877	$	3,457	$	3,089

_______________

(1)Includes net investment income pertaining to other limited partnership interests of $64 million and $156 million for the three months and nine months ended September 30, 2023, respectively, and ($127) million and $178 million for the three months and nine months ended September 30, 2022, respectively.

Net Investment Gains (Losses)

Components of Net Investment Gains (Losses)

The components of net investment gains (losses) were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Fixed maturity securities	$	(54)	$	(38)	$	(185)	$	(140)
Equity securities	(1)		(2)		(2)		(14)
Mortgage loans	3		2		(24)		(1)
Limited partnerships and LLCs	—		(4)		—		(21)
Other	(1)		(3)		(2)		(3)
Total net investment gains (losses)	$	(53)	$	(45)	$	(213)	$	(179)

Gains (losses) from foreign currency transactions included within net investment gains (losses) were ($2) million for both the three months and nine months ended September 30, 2023, and ($1) million and ($22) million for the three months and nine months ended September 30, 2022, respectively.

39

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

6. Investments (continued)

Sales or Disposals of Fixed Maturity Securities

Investment gains and losses on sales of securities are determined on a specific identification basis. Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Proceeds	$	494	$	1,146	$	1,771	$	5,261
Gross investment gains	$	1	$	1	$	12	$	47
Gross investment losses	(44)		(38)		(173)		(181)
Net investment gains (losses)	$	(43)	$	(37)	$	(161)	$	(134)

7. Derivatives

Accounting for Derivatives

See Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report for a description of the Company’s accounting policies for derivatives and the fair value hierarchy for derivatives.

Types of Derivative Instruments and Derivative Strategies

The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to minimize its exposure to various market risks. Commonly used derivative instruments include, but are not necessarily limited to:

•Interest rate derivatives: swaps, floors, caps, swaptions and forwards;

•Foreign currency exchange rate derivatives: forwards and swaps;

•Equity market derivatives: options, total return swaps and hybrid options; and

•Credit derivatives: single and index reference credit default swaps and swaptions.

For detailed information on these contracts and the related strategies, see Note 7 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report.

40

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

7. Derivatives (continued)

Primary Risks Managed by Derivatives

The primary underlying risk exposure, gross notional amount and estimated fair value of derivatives, excluding embedded derivatives, held were as follows at:

		September 30, 2023						December 31, 2022
	Primary Underlying Risk Exposure	Gross Notional Amount		Estimated Fair Value				Gross Notional Amount		Estimated Fair Value
				Assets		Liabilities				Assets		Liabilities
		(In millions)
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate forwards	Interest rate	$	—	$	—	$	—	$	60	$	—	$	12
Foreign currency swaps	Foreign currency exchange rate	3,942		472		14		4,026		596		8
Total qualifying hedges		3,942		472		14		4,086		596		20
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate swaps	Interest rate	30,527		168		280		3,145		98		46
Interest rate floors	Interest rate	3,000		2		1		3,250		12		3
Interest rate caps	Interest rate	5,800		80		27		6,350		137		43
Interest rate options	Interest rate	31,080		19		303		28,688		22		232
Interest rate forwards	Interest rate	16,441		178		2,867		18,168		35		2,466
Foreign currency swaps	Foreign currency exchange rate	771		125		—		822		148		—
Foreign currency forwards	Foreign currency exchange rate	480		5		1		487		1		10
Credit default swaps — written	Credit	1,530		21		1		1,757		18		2
Credit default swaptions	Credit	—		—		—		100		—		—
Equity index options	Equity market	16,215		508		436		17,229		697		351
Equity total return swaps	Equity market	56,332		931		1,061		32,909		520		747
Hybrid options	Equity market	630		7		—		—		—		—
Total non-designated or non-qualifying derivatives		162,806		2,044		4,977		112,905		1,688		3,900
Total		$	166,748	$	2,516	$	4,991	$	116,991	$	2,284	$	3,920

Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both September 30, 2023 and December 31, 2022. The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and generally do not qualify for hedge accounting because they do not meet the criteria required under portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities and generally do not qualify for hedge accounting because they do not meet the criteria of being “highly effective” as outlined in Accounting Standards Codification 815 — Derivatives and Hedging; (iii) derivatives that economically hedge MRBs that do not qualify for hedge accounting because the changes in estimated fair value of the MRBs are already recorded in net income; and (iv) written credit default swaps that are used to create synthetic credit investments and that do not qualify for hedge accounting because they do not involve a hedging relationship.

41

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

7. Derivatives (continued)

The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items reported in net derivative gains (losses) were as follows:

	Net Derivative Gains (Losses) Recognized for Derivatives		Net Derivative Gains (Losses) Recognized for Hedged Items		Net Investment Income		Amount of Gains (Losses) Deferred in AOCI
	(In millions)
Three Months Ended September 30, 2023
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate	$	—	$	—	$	1	$	(2)
Foreign currency exchange rate	1		(1)		13		(31)
Total cash flow hedges	1		(1)		14		(33)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	(1,481)		—		—		—
Foreign currency exchange rate	21		(16)		—		—
Credit	3		—		—		—
Equity market	(280)		—		—		—
Embedded	913		—		—		—
Total non-qualifying hedges	(824)		(16)		—		—
Total	$	(823)	$	(17)	$	14	$	(33)
Three Months Ended September 30, 2022
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate	$	—	$	—	$	1	$	(8)
Foreign currency exchange rate	8		(6)		17		341
Total cash flow hedges	8		(6)		18		333
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	(1,233)		—		—		—
Foreign currency exchange rate	99		(23)		—		—
Credit	5		—		—		—
Equity market	40		—		—		—
Embedded	518		—		—		—
Total non-qualifying hedges	(571)		(23)		—		—
Total	$	(563)	$	(29)	$	18	$	333

42

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

7. Derivatives (continued)

	Net Derivative Gains (Losses) Recognized for Derivatives		Net Derivative Gains (Losses) Recognized for Hedged Items		Net Investment Income		Amount of Gains (Losses) Deferred in AOCI
	(In millions)
Nine Months Ended September 30, 2023
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate	$	(2)	$	—	$	3	$	(1)
Foreign currency exchange rate	5		(6)		40		(122)
Total cash flow hedges	3		(6)		43		(123)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	(1,422)		—		—		—
Foreign currency exchange rate	25		(12)		—		—
Credit	22		—		—		—
Equity market	44		—		—		—
Embedded	(1,880)		—		—		—
Total non-qualifying hedges	(3,211)		(12)		—		—
Total	$	(3,208)	$	(18)	$	43	$	(123)
Nine Months Ended September 30, 2022
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate	$	4	$	—	$	3	$	(49)
Foreign currency exchange rate	9		(8)		42		666
Total cash flow hedges	13		(8)		45		617
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	(3,671)		—		—		—
Foreign currency exchange rate	212		(62)		—		—
Credit	(27)		—		—		—
Equity market	768		—		—		—
Embedded	4,106		—		—		—
Total non-qualifying hedges	1,388		(62)		—		—
Total	$	1,401	$	(70)	$	45	$	617

At September 30, 2023, the Company held no qualified derivatives hedging exposure to future cash flows for forecasted asset purchases. At December 31, 2022, the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions was less than one year.

At September 30, 2023 and December 31, 2022, the balance in AOCI associated with cash flow hedges was $509 million and $638 million, respectively.

Credit Derivatives

In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation.

43

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

7. Derivatives (continued)

The estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps were as follows at:

	September 30, 2023					December 31, 2022
Rating Agency Designation of Referenced Credit Obligations (1)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)
	(Dollars in millions)
Aaa/Aa/A	$	7	$	544	1.5	$	7	$	544	2.2
Baa	12		958		5.2	8		1,185		5.0
Ba	2		24		3.2	2		24		4.0
Caa and Lower	(1)		4		2.2	(1)		4		3.0
Total	$	20	$	1,530	3.8	$	16	$	1,757	4.1

_______________

(1)The Company has written credit protection on both single name and index references. The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s, S&P and Fitch. If no rating is available from a rating agency, then an internally developed rating is used.

(2)The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts.

Counterparty Credit Risk

The Company may be exposed to credit-related losses in the event of counterparty nonperformance on derivative instruments. Generally, the credit exposure is the fair value at the reporting date less any collateral received from the counterparty.

The Company manages its credit risk by: (i) entering into derivative transactions with creditworthy counterparties governed by master netting agreements; (ii) trading through regulated exchanges and central clearing counterparties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review.

See Note 8 for a description of the impact of credit risk on the valuation of derivatives.

The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:

			Gross Amounts Not Offset on the Consolidated Balance Sheets
	Gross Amount Recognized		Financial Instruments (1)		Collateral Received/Pledged (2)		Net Amount		Securities Collateral Received/Pledged (3)		Net Amount After Securities Collateral
	(In millions)
September 30, 2023
Derivative assets	$	2,735	$	(2,028)	$	(688)	$	19	$	(6)	$	13
Derivative liabilities	$	5,214	$	(2,028)	$	—	$	3,186	$	(3,186)	$	—
December 31, 2022
Derivative assets	$	2,308	$	(1,659)	$	(640)	$	9	$	(6)	$	3
Derivative liabilities	$	3,919	$	(1,659)	$	(7)	$	2,253	$	(2,251)	$	2

_______________

(1)Represents amounts subject to an enforceable master netting agreement or similar agreement.

44

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

7. Derivatives (continued)

(2)The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement.

(3)Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received.

The Company’s collateral arrangements generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the amount owed by that counterparty reaches a minimum transfer amount. Certain of these arrangements also include credit-contingent provisions which permit the party with positive fair value to terminate the derivative at the current fair value or demand immediate full collateralization from the party in a net liability position, in the event that the financial strength or credit rating of the party in a net liability position falls below a certain level.

The aggregate estimated fair values of derivatives in a net liability position containing such credit-contingent provisions and the aggregate estimated fair value of assets posted as collateral for such instruments were as follows at:

	September 30, 2023		December 31, 2022
	(In millions)
Estimated fair value of derivatives in a net liability position (1)	$	3,186	$	2,260
Estimated fair value of collateral provided (2):
Fixed maturity securities	$	5,567	$	4,894

_______________

(1)After taking into consideration the existence of netting agreements.

(2)Substantially all of the Company’s collateral arrangements provide for daily posting of collateral for the full value of the derivative contract. As a result, if the credit-contingent provisions of derivative contracts in a net liability position were triggered, minimal additional assets would be required to be posted as collateral or needed to settle the instruments immediately. Additionally, the Company is required to pledge initial margin for certain new over-the-counter (“OTC”) bilateral contracts between two counterparties (“OTC-bilateral”) derivative transactions to third-party custodians.

45

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

8. Fair Value

Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts.

Recurring Fair Value Measurements

The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented in the tables below. Investments that do not have a readily determinable fair value and are measured at net asset value (or equivalent) as a practical expedient to estimated fair value are excluded from the fair value hierarchy.

	September 30, 2023
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	32,086	$	824	$	32,910
Foreign corporate	—		10,362		316		10,678
U.S. government and agency	3,658		4,144		—		7,802
RMBS	—		7,041		10		7,051
CMBS	—		6,272		36		6,308
ABS	—		5,815		299		6,114
State and political subdivision	—		3,604		—		3,604
Foreign government	—		933		33		966
Total fixed maturity securities	3,658		70,257		1,518		75,433
Equity securities	39		26		25		90
Short-term investments	675		328		—		1,003
Derivative assets: (1)
Interest rate	—		447		—		447
Foreign currency exchange rate	—		589		13		602
Credit	—		14		7		21
Equity market	—		1,439		7		1,446
Total derivative assets	—		2,489		27		2,516
Market risk benefit assets	—		—		694		694
Separate account assets	16		82,659		—		82,675
Total assets	$	4,388	$	155,759	$	2,264	$	162,411
Liabilities
Market risk benefit liabilities	$	—	$	—	$	8,830	$	8,830
Derivative liabilities: (1)
Interest rate	—		3,478		—		3,478
Foreign currency exchange rate	—		15		—		15
Credit	—		—		1		1
Equity market	—		1,497		—		1,497
Total derivative liabilities	—		4,990		1		4,991
Embedded derivatives on index-linked annuities (2)	—		—		6,031		6,031
Total liabilities	$	—	$	4,990	$	14,862	$	19,852

46

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

8. Fair Value (continued)

	December 31, 2022
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	31,418	$	1,189	$	32,607
Foreign corporate	—		9,978		598		10,576
U.S. government and agency	3,566		4,450		—		8,016
RMBS	—		7,514		14		7,528
CMBS	—		6,578		33		6,611
ABS	—		5,041		318		5,359
State and political subdivision	—		3,799		—		3,799
Foreign government	—		1,043		38		1,081
Total fixed maturity securities	3,566		69,821		2,190		75,577
Equity securities	35		27		27		89
Short-term investments	722		359		—		1,081
Derivative assets: (1)
Interest rate	—		304		—		304
Foreign currency exchange rate	—		716		29		745
Credit	—		10		8		18
Equity market	—		1,217		—		1,217
Total derivative assets	—		2,247		37		2,284
Market risk benefit assets	—		—		483		483
Separate account assets	29		84,936		—		84,965
Total assets	$	4,352	$	157,390	$	2,737	$	164,479
Liabilities
Market risk benefit liabilities	$	—	$	—	$	10,389	$	10,389
Derivative liabilities: (1)
Interest rate	—		2,802		—		2,802
Foreign currency exchange rate	—		18		—		18
Credit	—		—		2		2
Equity market	—		1,098		—		1,098
Total derivative liabilities	—		3,918		2		3,920
Embedded derivatives on index-linked annuities (2)	—		—		3,932		3,932
Total liabilities	$	—	$	3,918	$	14,323	$	18,241

_______________

(1)Derivative assets are reported in other invested assets and derivative liabilities are reported in other liabilities. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets.

(2)Embedded derivative liabilities on index-linked annuities are reported in policyholder account balances.

47

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

8. Fair Value (continued)

Valuation Controls and Procedures

The Company monitors and provides oversight of valuation controls and policies for securities, mortgage loans and derivatives, which are primarily executed by its valuation service providers. The valuation methodologies used to determine fair values prioritize the use of observable market prices and market-based parameters and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. The valuation methodologies for securities, mortgage loans and derivatives are reviewed on an ongoing basis and revised when necessary. In addition, the Chief Accounting Officer periodically reports to the Audit Committee of Brighthouse Financial’s Board of Directors regarding compliance with fair value accounting standards.

The fair value of financial assets and financial liabilities is based on quoted market prices, where available. Prices received are assessed to determine if they represent a reasonable estimate of fair value. Several controls are performed, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. Independent non-binding broker quotes, also referred to herein as “consensus pricing,” are used for a non-significant portion of the portfolio. Prices received from independent brokers are assessed to determine if they represent a reasonable estimate of fair value by considering such pricing relative to the current market dynamics and current pricing for similar financial instruments.

A formal process is also applied to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained. If obtaining an independent non-binding broker quotation is unsuccessful, the last available price will be used.

Additional controls are performed, such as, balance sheet analytics to assess reasonableness of period-to-period pricing changes, including any price adjustments. Price adjustments are applied if prices or quotes received from independent pricing services or brokers are not considered reflective of market activity or representative of estimated fair value. The Company did not have significant price adjustments during the nine months ended September 30, 2023.

Determination of Fair Value

Fixed Maturity Securities

The fair values for actively traded marketable bonds, primarily U.S. government and agency securities, are determined using the quoted market prices and are classified as Level 1 assets. For fixed maturity securities classified as Level 2 assets, fair values are determined using either a market or income approach and are valued based on a variety of observable inputs as described below.

U.S. corporate and foreign corporate securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark yields, spreads off benchmark yields, new issuances, issuer rating, trades of identical or comparable securities, or duration. Privately-placed securities are valued using the additional key inputs: market yield curve, call provisions, observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer, and delta spread adjustments to reflect specific credit-related issues.

U.S. government and agency, state and political subdivision and foreign government securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark U.S. Treasury yield or other yields, spread off the U.S. Treasury yield curve for the identical security, issuer ratings and issuer spreads, broker-dealer quotes, and comparable securities that are actively traded.

48

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

8. Fair Value (continued)

Structured Securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, ratings, geographic region, weighted average coupon and weighted average maturity, average delinquency rates and debt-service coverage ratios. Other issuance-specific information is also used, including, but not limited to, collateral type, structure of the security, vintage of the loans, payment terms of the underlying asset, payment priority within tranche, and deal performance.

Equity Securities and Short-term Investments

The fair value for actively traded equity securities and short-term investments are determined using quoted market prices and are classified as Level 1 assets. For financial instruments classified as Level 2 assets, fair values are determined using a market approach and are valued based on a variety of observable inputs as described below.

Equity securities and short-term investments: Fair value is determined using third-party commercial pricing services, with the primary input being quoted prices in markets that are not active.

Derivatives

Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the OTC market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are OTC-bilateral.

The fair values for exchange-traded derivatives are determined using the quoted market prices and are classified as Level 1 assets. For OTC-bilateral derivatives and OTC-cleared derivatives classified as Level 2 assets or liabilities, fair values are determined using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models which are based on market standard valuation methodologies and a variety of observable inputs.

The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments.

Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income.

The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period.

49

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

8. Fair Value (continued)

Market Risk Benefits

MRBs principally include guaranteed minimum benefits on variable annuity contracts including benefits reinsured related to these guarantees.

The estimated fair value of variable annuity guarantees accounted for as MRBs is determined based on the present value of projected future benefits less the present value of projected future fees attributable to the guarantees. At policy inception, the Company determines an attributed fee ratio by solving for a percentage of projected future rider fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. To the extent the rider fees are insufficient, the Company may also include fees related to mortality and expense charges in the attributed fee ratio, provided the total fees included in the calculation do not exceed total contract fees and assessments collected from the contract holder. Any additional fees not included in the attributed fee ratio are considered revenue and reported in universal life and investment-type product policy fees. The attributed fee ratio is not updated in subsequent periods.

The Company updates the estimated fair value of variable annuity guarantees in subsequent periods by projecting future benefits using capital markets inputs and actuarial assumptions including expectations of policyholder behavior. A risk neutral valuation methodology is used to project the cash flows from the guarantees under multiple capital markets scenarios. The reported estimated fair value is then determined by taking the present value of these cash flows using a discount rate that incorporates a spread over the risk-free rate to reflect the Company’s nonperformance risk and adding a risk margin.

The valuation of MRBs includes an adjustment for the risk that the Company fails to satisfy its obligations, which is referred to as nonperformance risk. The nonperformance risk adjustment is captured as an additional spread applied to the risk-free rate in determining the rate to discount the cash flows of the liability. The spread over the risk-free rate is based on the Company’s creditworthiness taking into consideration publicly available information relating to spreads in the secondary market for Brighthouse Financial’s debt. These observable spreads are then adjusted, as necessary, to reflect the financial strength ratings of the issuing insurance subsidiaries as compared to the credit rating of Brighthouse Financial.

Risk margins are established to capture the non-capital markets risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties in certain actuarial assumptions. The establishment of risk margins requires the use of significant actuarial judgment, including assumptions of the amount needed to cover the guarantees.

Actuarial assumptions are reviewed at least annually, and if they change significantly, the estimated fair value is adjusted through net income. Capital market inputs used in the measurement of variable annuity guarantees are updated quarterly through net income, except for the change attributable to the Company’s nonperformance risk, which is reported in OCI.

Embedded Derivatives

Embedded derivatives include crediting rates associated with index-linked annuity contracts. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income.

The crediting rates associated with these features are embedded derivatives which are measured at estimated fair value separately from the host fixed annuity contract. These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets.

The estimated fair value of crediting rates associated with index-linked annuities is determined using a combination of an option pricing model and an option-budget approach. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk.

Actuarial assumptions including policyholder behavior and expectations for renewals at the end of the term period are reviewed at least annually, and if they change significantly, the estimated fair value is adjusted through net income. Capital market inputs used in the measurement of crediting rate embedded derivatives are updated quarterly through net income.

50

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

8. Fair Value (continued)

Transfers Into or Out of Level 3:

Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable.

Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

Certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows at:

					September 30, 2023			December 31, 2022			Impact of Increase in Input on Estimated Fair Value
	Valuation Techniques		Significant Unobservable Inputs		Range			Range
Market Risk Benefits
Variable annuity guaranteed minimum benefits	•	Option pricing techniques	•	Mortality rates	0.04%	-	12.90%	0.04%	-	12.90%	Decrease (1)
			•	Lapse rates	1.00%	-	22.80%	1.00%	-	24.11%	Decrease (2)
			•	Utilization rates	0.00%	-	25.00%	0.00%	-	25.00%	Increase (3)
			•	Withdrawal rates	0.00%	-	10.00%	0.00%	-	10.00%	(4)
			•	Long-term equity volatilities	15.27%	-	23.76%	19.99%	-	28.45%	Increase (5)
			•	Nonperformance risk spread	0.85%	-	1.83%	(2.73)%	-	4.52%	Decrease (6)
Embedded Derivatives
Index-linked annuity crediting rates	•	Option pricing techniques	•	Mortality rates	0.03%	-	9.24%	0.03%	-	9.24%	Decrease (1)
			•	Lapse rates	1.00%	-	62.30%	1.00%	-	62.30%	Decrease (2)
			•	Withdrawal rates	0.50%	-	9.00%	0.50%	-	9.00%	(4)
			•	Nonperformance risk spread	0.58%	-	1.77%	0.00%	-	1.98%	Decrease (6)

_______________

(1)Mortality rates vary by age and by demographic characteristics such as gender. The range shown reflects the mortality rate for policyholders between 35 and 90 years old. Mortality rate assumptions are set based on company experience and include an assumption for mortality improvement.

(2)The lapse rate range reflects base lapse rates for major product categories for duration 1-20. Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. For variable annuity guarantees, a dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in-the-money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies.

51

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

8. Fair Value (continued)

(3)The utilization rate assumption for variable annuity guarantees estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible in a given year. The range shown represents the floor and cap of the GMIB dynamic election rates across varying levels of in-the-money. For lifetime withdrawal guarantee riders, the assumption is that everyone will begin withdrawals once account value reaches zero which is equivalent to a 100% utilization rate. Utilization rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder.

(4)The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For variable annuity GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For variable annuity GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.

(5)Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing MRBs.

(6)Nonperformance risk spread varies by duration. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the MRB or embedded derivative.

The Company does not develop unobservable inputs used in measuring fair value for all other assets and liabilities classified within Level 3; therefore, these are not included in the table above. The other Level 3 assets and liabilities primarily included fixed maturity securities and derivatives. For fixed maturity securities valued based on non-binding broker quotes, an increase (decrease) in credit spreads would result in a higher (lower) fair value. For derivatives valued based on third-party pricing models, an increase (decrease) in credit spreads would generally result in a higher (lower) fair value.

52

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

8. Fair Value (continued)

The changes in assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (excluding MRBs disclosed in Note 4) were summarized as follows:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	Corporate (1)		Structured Securities		Foreign Government		Equity Securities		Short-term Investments		Net Derivatives (2)		Embedded Derivatives on Index-Linked Annuities
	(In millions)
Three Months Ended September 30, 2023
Balance, beginning of period	$	1,931	$	371	$	38	$	25	$	—	$	27	$	(6,886)
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	(9)		—		—		—		—		2		913
Total realized/unrealized gains (losses) included in AOCI	(19)		(2)		(1)		—		—		(3)		—
Purchases (5)	32		17		—		—		—		—		—
Sales (5)	(56)		(11)		(1)		—		—		—		—
Issuances (5)	—		—		—		—		—		—		—
Settlements (5)	—		—		—		—		—		—		(58)
Transfers into Level 3 (6)	45		12		—		—		—		—		—
Transfers out of Level 3 (6)	(784)		(42)		(3)		—		—		—		—
Balance, end of period	$	1,140	$	345	$	33	$	25	$	—	$	26	$	(6,031)
Three Months Ended September 30, 2022
Balance, beginning of period	$	1,710	$	345	$	40	$	27	$	—	$	38	$	(2,831)
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	—		—		—		1		—		3		518
Total realized/unrealized gains (losses) included in AOCI	(108)		(11)		(4)		—		—		21		—
Purchases (5)	278		125		—		—		—		—		—
Sales (5)	(22)		(1)		(1)		—		—		—		—
Issuances (5)	—		—		—		—		—		—		—
Settlements (5)	—		—		—		—		—		—		(29)
Transfers into Level 3 (6)	16		19		—		—		—		—		—
Transfers out of Level 3 (6)	(319)		(138)		—		—		—		—		—
Balance, end of period	$	1,555	$	339	$	35	$	28	$	—	$	62	$	(2,342)
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2023 (7)	$	(9)	$	—	$	—	$	1	$	—	$	3	$	785
Changes in unrealized gains (losses) included in OCI for the instruments still held as of September 30, 2023 (7)	$	(25)	$	(3)	$	(1)	$	—	$	—	$	(3)	$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2022 (7)	$	—	$	—	$	—	$	1	$	—	$	3	$	461
Changes in unrealized gains (losses) included in OCI for the instruments still held as of September 30, 2022 (7)	$	(109)	$	(11)	$	(4)	$	—	$	—	$	21	$	—

53

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

8. Fair Value (continued)

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	Corporate (1)		Structured Securities		Foreign Government		Equity Securities		Short-term Investments		Net Derivatives (2)		Embedded Derivatives on Index-Linked Annuities
	(In millions)
Nine Months Ended September 30, 2023
Balance, beginning of period	$	1,787	$	365	$	38	$	27	$	—	$	35	$	(3,932)
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	(12)		—		—		(3)		—		(3)		(1,880)
Total realized/unrealized gains (losses) included in AOCI	(11)		(2)		—		—		—		(3)		—
Purchases (5)	119		45		—		1		—		9		—
Sales (5)	(126)		(17)		(2)		—		—		—		—
Issuances (5)	—		—		—		—		—		—		—
Settlements (5)	—		—		—		—		—		—		(219)
Transfers into Level 3 (6)	101		10		—		—		—		—		—
Transfers out of Level 3 (6)	(718)		(56)		(3)		—		—		(12)		—
Balance, end of period	$	1,140	$	345	$	33	$	25	$	—	$	26	$	(6,031)
Nine Months Ended September 30, 2022
Balance, beginning of period	$	1,399	$	220	$	26	$	13	$	2	$	36	$	(6,641)
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	(6)		—		—		1		—		(11)		4,106
Total realized/unrealized gains (losses) included in AOCI	(286)		(23)		(13)		—		—		36		—
Purchases (5)	760		230		5		14		—		1		—
Sales (5)	(159)		(12)		(2)		—		(2)		—		—
Issuances (5)	—		—		—		—		—		—		—
Settlements (5)	—		—		—		—		—		—		193
Transfers into Level 3 (6)	31		25		19		—		—		—		—
Transfers out of Level 3 (6)	(184)		(101)		—		—		—		—		—
Balance, end of period	$	1,555	$	339	$	35	$	28	$	—	$	62	$	(2,342)
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2023 (7)	$	(11)	$	—	$	—	$	(2)	$	—	$	(2)	$	(2,183)
Changes in unrealized gains (losses) included in OCI for the instruments still held as of September 30, 2023 (7)	$	(20)	$	(3)	$	—	$	—	$	—	$	(3)	$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2022 (7)	$	—	$	—	$	—	$	1	$	—	$	(4)	$	3,904
Changes in unrealized gains (losses) included in OCI for the instruments still held as of September 30, 2022 (7)	$	(288)	$	(23)	$	(13)	$	—	$	—	$	36	$	—

_______________

(1)Comprised of U.S. and foreign corporate securities.

(2)Freestanding derivative assets and liabilities are reported net for purposes of the rollforward.

(3)Amortization of premium/accretion of discount is included in net investment income. Changes in the allowance for credit losses and direct write-offs are charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

54

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

8. Fair Value (continued)

(4)Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.

(5)Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements.

(6)Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and out of Level 3 in the same period are excluded from the rollforward.

(7)Changes in unrealized gains (losses) included in net income (loss) for fixed maturities are reported in either net investment income or net investment gains (losses). Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

Fair Value of Financial Instruments Carried at Other Than Fair Value

The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income and payables for collateral under securities loaned and other transactions. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2, approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the tables below are not considered financial instruments subject to this disclosure.

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:

	September 30, 2023
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	22,682	$	—	$	—	$	20,010	$	20,010
Policy loans	$	1,311	$	—	$	507	$	858	$	1,365
Other invested assets	$	259	$	—	$	247	$	12	$	259
Premiums, reinsurance and other receivables	$	7,134	$	—	$	64	$	7,141	$	7,205
Liabilities
Policyholder account balances	$	31,509	$	—	$	—	$	30,470	$	30,470
Long-term debt	$	3,157	$	—	$	2,591	$	—	$	2,591
Other liabilities	$	1,124	$	—	$	436	$	688	$	1,124
Separate account liabilities	$	1,063	$	—	$	1,063	$	—	$	1,063

55

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

8. Fair Value (continued)

	December 31, 2022
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	22,936	$	—	$	—	$	20,816	$	20,816
Policy loans	$	1,282	$	—	$	515	$	878	$	1,393
Other invested assets	$	213	$	—	$	201	$	12	$	213
Premiums, reinsurance and other receivables	$	6,080	$	—	$	89	$	6,141	$	6,230
Liabilities
Policyholder account balances	$	31,887	$	—	$	—	$	30,942	$	30,942
Long-term debt	$	3,156	$	—	$	2,703	$	—	$	2,703
Other liabilities	$	943	$	—	$	248	$	695	$	943
Separate account liabilities	$	1,024	$	—	$	1,024	$	—	$	1,024

9. Long-term Debt

Repurchase Facility

In July 2023, Brighthouse Life Insurance Company entered into an additional secured committed repurchase facility (the “Repurchase Facility”) under which Brighthouse Life Insurance Company may enter into repurchase transactions in an aggregate amount up to $500 million for a term of up to two years, which is available to Brighthouse Life Insurance Company under certain market conditions. Under the Repurchase Facility, Brighthouse Life Insurance Company may sell certain eligible securities at a purchase price based on the market value of the securities less an applicable margin based on the types of securities sold, with a concurrent agreement to repurchase such securities at a predetermined future date (up to three months) and at a price which represents the original purchase price plus interest. At September 30, 2023, there were no borrowings under the Repurchase Facility.

10. Equity

Preferred Stock

Preferred stock shares authorized, issued and outstanding were as follows at both September 30, 2023 and December 31, 2022:

	Shares Authorized	Shares Issued	Shares Outstanding
6.600% Non-Cumulative Preferred Stock, Series A	17,000	17,000	17,000
6.750% Non-Cumulative Preferred Stock, Series B	16,100	16,100	16,100
5.375% Non-Cumulative Preferred Stock, Series C	23,000	23,000	23,000
4.625% Non-Cumulative Preferred Stock, Series D	14,000	14,000	14,000
Not designated	99,929,900	—	—
Total	100,000,000	70,100	70,100

56

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

10. Equity (continued)

The per share and aggregate dividends declared for BHF’s preferred stock by series were as follows:

	Three Months Ended September 30,								Nine Months Ended September 30,
	2023				2022				2023				2022
Series	Per Share		Aggregate		Per Share		Aggregate		Per Share		Aggregate		Per Share		Aggregate
	(In millions, except per share data)								(In millions, except per share data)
A	$	412.50	$	7	$	412.50	$	7	$	1,237.50	$	21	$	1,237.50	$	21
B	$	421.88	7		$	421.88	7		$	1,265.64	21		$	1,265.64	21
C	$	335.94	8		$	335.94	7		$	1,007.82	23		$	1,007.82	23
D	$	289.06	4		$	289.06	4		$	867.18	12		$	973.17	13
Total			$	26			$	25			$	77			$	78

Common Stock Repurchase Program

During the nine months ended September 30, 2023 and 2022, BHF repurchased 3,968,138 and 8,194,191 shares, respectively, of its common stock through open market purchases pursuant to 10b5-1 plans for $190 million and $395 million, respectively. At September 30, 2023, BHF had $104 million remaining under its common stock repurchase program.

Accumulated Other Comprehensive Income (Loss)

Information regarding changes in the balances of each component of AOCI was as follows:

	Three Months Ended September 30, 2023
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Changes in Nonperformance Risk on Market Risk Benefits		Changes in Discount Rates on the Liability for Future Policy Benefits		Other (2)		Total
	(In millions)
Balance at June 30, 2023	$	(5,689)	$	430	$	(1,475)	$	905	$	(52)	$	(5,881)
OCI before reclassifications	(2,490)		(33)		174		744		(8)		(1,613)
Deferred income tax benefit (expense) (3)	523		8		(37)		(157)		2		339
AOCI before reclassifications, net of income tax	(7,656)		405		(1,338)		1,492		(58)		(7,155)
Amounts reclassified from AOCI	55		(2)		—		—		(2)		51
Deferred income tax benefit (expense) (3)	(12)		—		—		—		—		(12)
Amounts reclassified from AOCI, net of income tax	43		(2)		—		—		(2)		39
Balance at September 30, 2023	$	(7,613)	$	403	$	(1,338)	$	1,492	$	(60)	$	(7,116)

	Three Months Ended September 30, 2022
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Changes in Nonperformance Risk on Market Risk Benefits		Changes in Discount Rates on the Liability for Future Policy Benefits		Other (2)		Total
	(In millions)
Balance at June 30, 2022	$	(3,727)	$	534	$	(1,350)	$	441	$	(74)	$	(4,176)
OCI before reclassifications	(5,130)		333		130		1,045		(23)		(3,645)
Deferred income tax benefit (expense) (3)	1,209		(202)		(27)		(219)		5		766
AOCI before reclassifications, net of income tax	(7,648)		665		(1,247)		1,267		(92)		(7,055)
Amounts reclassified from AOCI	60		(9)		—		—		—		51
Deferred income tax benefit (expense) (3)	(13)		2		—		—		—		(11)
Amounts reclassified from AOCI, net of income tax	47		(7)		—		—		—		40
Balance at September 30, 2022	$	(7,601)	$	658	$	(1,247)	$	1,267	$	(92)	$	(7,015)

57

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

10. Equity (continued)

	Nine Months Ended September 30, 2023
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Changes in Nonperformance Risk on Market Risk Benefits		Changes in Discount Rates on the Liability for Future Policy Benefits		Other (2)		Total
	(In millions)
Balance at December 31, 2022	$	(6,194)	$	504	$	(1,378)	$	1,020	$	(58)	$	(6,106)
OCI before reclassifications	(1,971)		(123)		51		598		(5)		(1,450)
Deferred income tax benefit (expense) (3)	414		27		(11)		(126)		1		305
AOCI before reclassifications, net of income tax	(7,751)		408		(1,338)		1,492		(62)		(7,251)
Amounts reclassified from AOCI	175		(6)		—		—		3		172
Deferred income tax benefit (expense) (3)	(37)		1		—		—		(1)		(37)
Amounts reclassified from AOCI, net of income tax	138		(5)		—		—		2		135
Balance at September 30, 2023	$	(7,613)	$	403	$	(1,338)	$	1,492	$	(60)	$	(7,116)

	Nine Months Ended September 30, 2022
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Changes in Nonperformance Risk on Market Risk Benefits		Changes in Discount Rates on the Liability for Future Policy Benefits		Other (2)		Total
	(In millions)
Balance at December 31, 2021	$	5,285	$	239	$	(3,230)	$	(2,199)	$	(48)	$	47
OCI before reclassifications	(16,565)		617		2,510		4,388		(59)		(9,109)
Deferred income tax benefit (expense) (3)	3,534		(185)		(527)		(922)		13		1,913
AOCI before reclassifications, net of income tax	(7,746)		671		(1,247)		1,267		(94)		(7,149)
Amounts reclassified from AOCI	184		(16)		—		—		2		170
Deferred income tax benefit (expense) (3)	(39)		3		—		—		—		(36)
Amounts reclassified from AOCI, net of income tax	145		(13)		—		—		2		134
Balance at September 30, 2022	$	(7,601)	$	658	$	(1,247)	$	1,267	$	(92)	$	(7,015)

__________________

(1)See Note 6 for information on offsets to investments related to future policy benefits.

(2)Includes OCI related to foreign currency translation and defined benefit plan gains and losses.

(3)The effects of income taxes on amounts recorded to AOCI are also recognized in AOCI. These income tax effects are released from AOCI when the related activity is reclassified into results from operations.

58

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

10. Equity (continued)

Information regarding amounts reclassified out of each component of AOCI was as follows:

AOCI Components	Amounts Reclassified from AOCI								Consolidated Statements of Operations and Comprehensive Income (Loss) Locations
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)	$	(43)	$	(39)	$	(157)	$	(133)	Net investment gains (losses)
Net unrealized investment gains (losses)	(12)		(21)		(18)		(51)		Net derivative gains (losses)
Net unrealized investment gains (losses), before income tax	(55)		(60)		(175)		(184)
Income tax (expense) benefit	12		13		37		39
Net unrealized investment gains (losses), net of income tax	(43)		(47)		(138)		(145)
Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate swaps	—		—		(2)		4		Net derivative gains (losses)
Interest rate swaps	1		1		3		3		Net investment income
Foreign currency swaps	1		8		5		9		Net derivative gains (losses)
Gains (losses) on cash flow hedges, before income tax	2		9		6		16
Income tax (expense) benefit	—		(2)		(1)		(3)
Gains (losses) on cash flow hedges, net of income tax	2		7		5		13
Defined benefit plans adjustment:
Amortization of net actuarial gains (losses)	2		—		(3)		(2)
Amortization of defined benefit plans, before income tax	2		—		(3)		(2)
Income tax (expense) benefit	—		—		1		—
Amortization of defined benefit plans, net of income tax	2		—		(2)		(2)
Total reclassifications, net of income tax	$	(39)	$	(40)	$	(135)	$	(134)

11. Other Revenues and Other Expenses

Other Revenues

The Company has entered into contracts with mutual funds, fund managers, and their affiliates (collectively, the “Funds”) whereby the Company is paid monthly or quarterly fees (“12b-1 fees”) for providing certain services to customers and distributors of the Funds. The 12b-1 fees are generally equal to a fixed percentage of the average daily balance of the customer’s investment in a fund. The percentage is specified in the contract between the Company and the Funds. Payments are generally collected when due and are neither refundable nor able to offset future fees.

To earn these fees, the Company performs services such as responding to phone inquiries, maintaining records, providing information to distributors and shareholders about fund performance and providing training to account managers and sales agents. The passage of time reflects the satisfaction of the Company’s performance obligations to the Funds and is used to recognize revenue associated with 12b-1 fees.

Other revenues consisted primarily of 12b-1 fees of $68 million and $201 million for the three months and nine months ended September 30, 2023, respectively, and $70 million and $226 million for the three months and nine months ended September 30, 2022, respectively, of which substantially all were reported in the Annuities segment.

59

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

11. Other Revenues and Other Expenses (continued)

Other Expenses

Information on other expenses was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Compensation	$	98	$	89	$	302	$	254
Contracted services and other labor costs	73		73		221		197
Transition services agreements	7		15		26		44
Establishment costs	—		21		—		47
Premium and other taxes, licenses and fees	15		13		49		41
Separate account fees	93		98		277		314
Volume related costs, excluding compensation, net of DAC capitalization	129		130		409		374
Interest expense on debt	38		38		114		114
Other	20		18		55		211
Total other expenses	$	473	$	495	$	1,453	$	1,596

Capitalization of DAC

See Note 5 for additional information on the capitalization of DAC.

12. Earnings Per Common Share

The calculation of earnings per common share was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions, except share and per share data)
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders	$	453	$	388	$	(272)	$	3,665
Weighted average common shares outstanding — basic	65,408,241		71,517,500		66,658,796		74,294,329
Dilutive effect of share-based awards	336,110		441,880		—		482,846
Weighted average common shares outstanding — diluted	65,744,351		71,959,380		66,658,796		74,777,175
Earnings per common share:
Basic	$	6.92	$	5.42	$	(4.08)	$	49.31
Diluted	$	6.89	$	5.39	$	(4.08)	$	49.00

For the three months ended September 30, 2023 and 2022 and the nine months ended September 30, 2022, weighted average shares used for calculating diluted earnings per common share excludes 187,371 of out-of-the-money stock options, as the inclusion of such shares would be antidilutive to the earnings per common share calculation due to the average share price for the three months ended September 30, 2023 and 2022 and the nine months ended September 30, 2022.

For the nine months ended September 30, 2023, basic loss per common share equaled diluted loss per common share. The diluted shares were not included in the per share calculation for these periods as the inclusion of such shares would have an antidilutive effect.

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Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

13. Contingencies, Commitments and Guarantees

Contingencies

Litigation

The Company is a defendant in a number of litigation matters. In some of the matters, large or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value.

The Company also receives and responds to subpoenas or other inquiries seeking a broad range of information from various state and federal regulators, agencies and officials. The issues involved in information requests and regulatory matters vary widely, but can include inquiries or investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. The Company cooperates in these inquiries.

Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law.

The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at September 30, 2023.

Matters as to Which an Estimate Can Be Made

For some loss contingency matters, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. In addition to amounts accrued for probable and reasonably estimable losses, as of September 30, 2023, the Company estimates the aggregate range of reasonably possible losses to be up to approximately $10 million.

Matters as to Which an Estimate Cannot Be Made

For other matters, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews.

Sales Practices Claims

Over the past several years, the Company has faced claims and regulatory inquiries and investigations, alleging improper marketing or sales of individual life insurance policies, annuities or other products. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters.

61

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

13. Contingencies, Commitments and Guarantees (continued)

Cost of Insurance Class Actions

Richard A. Newton v. Brighthouse Life Insurance Company (U.S. District Court, Northern District of Georgia, Atlanta Division, filed May 8, 2020). Plaintiff has filed a purported class action lawsuit against Brighthouse Life Insurance Company. Plaintiff was the owner of a universal life insurance policy issued by Travelers Insurance Company, a predecessor to Brighthouse Life Insurance Company. Plaintiff seeks to certify a class of all persons who own or owned life insurance policies issued where the terms of the life insurance policy provide or provided, among other things, a guarantee that the cost of insurance rates would not be increased by more than a specified percentage in any contract year. Plaintiff also alleges that cost of insurance charges were based on improper factors and should have decreased over time due to improving mortality but did not. Plaintiff alleges, among other things, causes of action for breach of contract, fraud, suppression and concealment, and violation of the Georgia Racketeer Influenced and Corrupt Organizations Act. Plaintiff seeks to recover damages, including punitive damages, interest and treble damages, attorneys’ fees, and injunctive and declaratory relief. Brighthouse Life Insurance Company filed a motion to dismiss in June 2020, which was granted in part and denied in part in March 2021. Plaintiff was granted leave to amend the complaint. On January 18, 2023, the plaintiff filed a motion on consent to amend the second amended class action complaint to narrow the scope of the class sought to those persons who own or owned life insurance policies issued in Georgia. The motion was granted on January 23, 2023, and the third amended class action complaint was filed on January 23, 2023. The Company intends to vigorously defend this matter.

Lawrence Martin v. Brighthouse Life Insurance Company (U.S. District Court, Southern District of New York, filed April 6, 2021). Plaintiff has filed a purported class action lawsuit against Brighthouse Life Insurance Company. Plaintiff is the owner of a universal life insurance policy issued by Travelers Insurance Company, a predecessor to Brighthouse Life Insurance Company. Plaintiff seeks to certify a class of similarly situated owners of universal life insurance policies issued or administered by defendants and alleges that cost of insurance charges were based on improper factors and should have decreased over time due to improving mortality but did not. Plaintiff alleges, among other things, causes of action for breach of contract, breach of the covenant of good faith and fair dealing, and unjust enrichment. Plaintiff seeks to recover compensatory damages, attorney’s fees, interest, and equitable relief including a constructive trust. Brighthouse Life Insurance Company filed a motion to dismiss in June 2021, which was denied in February 2022. Brighthouse Life Insurance Company of NY was initially named as a defendant when the lawsuit was filed, but was dismissed as a defendant, without prejudice, in April 2022. The Company intends to vigorously defend this matter.

MOVEit Data Security Incident Litigation

Kennedy v. Progress Software Corporation, et al. (U.S. District Court, District of Massachusetts, filed October 3, 2023). BHF has been named as a defendant in a purported class action lawsuit. The action relates to a data security incident at an alleged third-party vendor, PBI Research Services (“PBI”), and allegedly involves the MOVEit file transfer system that PBI uses in its provision of services (“MOVEit Incident”). As it relates to BHF, plaintiff seeks to certify a subclass of persons whose private information was allegedly maintained by BHF and accessed or acquired in connection with the MOVEit Incident. Plaintiff alleges, among other things, that BHF negligently chose to utilize PBI to store and transfer plaintiff’s and purported class members’ private information despite PBI’s use of the MOVEit software which plaintiff contends contained security vulnerabilities. The complaint asserts claims against BHF for negligence, negligence per se, and unjust enrichment, and plaintiff seeks declaratory and injunctive relief, damages, attorneys’ fees and prejudgment interest. BHF intends to vigorously defend this matter.

Summary

Various litigations, claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, investor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations.

62

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

13. Contingencies, Commitments and Guarantees (continued)

It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, large or indeterminate amounts, including punitive and treble damages, are sought. Although, in light of these considerations, it is possible that an adverse outcome in certain cases could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods.

Other Loss Contingencies

As with litigation and regulatory loss contingencies, the Company considers establishing liabilities for loss contingencies associated with disputes or other matters involving third parties, including counterparties to contractual arrangements entered into by the Company (e.g., third-party vendors and reinsurers), as well as with tax or other authorities (“other loss contingencies”). The Company establishes liabilities for such other loss contingencies when it is probable that a loss will be incurred and the amount of the loss can be reasonably estimated. In matters where it is not probable, but is reasonably possible that a loss will be incurred and the amount of loss can be reasonably estimated, such losses or range of losses are disclosed, and no accrual is made. In the absence of sufficient information to support an assessment of the reasonably possible loss or range of loss, no accrual is made and no loss or range of loss is disclosed.

In the matters where the Company’s subsidiaries are acting as the reinsured or the reinsurer, such matters involve assertions by third parties primarily related to rates, fees or reinsured benefit calculations, and in certain of such matters, the counterparty has made a request to arbitrate.

On a quarterly basis, the Company reviews relevant information with respect to other loss contingencies and, when applicable, updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews.

As of September 30, 2023, the Company estimates the range of reasonably possible losses in excess of the amounts accrued for certain other loss contingencies to be from zero up to approximately $125 million, which are primarily associated with the reinsurance-related matters described above. For certain other matters, the Company may not currently be able to estimate the reasonably possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of such loss.

During the second quarter of 2022, the Company settled a reinsurance-related matter with a third party for $140 million, which is reported in other expenses.

Commitments

Mortgage Loan Commitments

The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $294 million and $247 million at September 30, 2023 and December 31, 2022, respectively.

Commitments to Fund Partnership Investments, Bank Credit Facilities and Private Corporate Bond Investments

The Company commits to fund partnership investments and to lend funds under bank credit facilities and private corporate bond investments. The amounts of these unfunded commitments were $1.4 billion and $1.9 billion at September 30, 2023 and December 31, 2022, respectively.

63

Brighthouse Financial, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) (continued)

13. Contingencies, Commitments and Guarantees (continued)

Guarantees

In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from less than $1 million to $92 million, with a cumulative maximum of $98 million, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments.

In addition, the Company indemnifies its directors and officers as provided in its charters and bylaws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future.

The Company’s recorded liabilities were $1 million at both September 30, 2023 and December 31, 2022 for indemnities, guarantees and commitments.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Index to Management’s Discussion and Analysis of Financial Condition and Results of Operations

	Page
Introduction	66
Executive Summary	66
Industry Trends and Uncertainties	67
Summary of Critical Accounting Estimates	69
Non-GAAP and Other Financial Disclosures	69
Results of Operations	71
Investments	84
Derivatives	94
Policyholder Liabilities	95
Liquidity and Capital Resources	98
Note Regarding Forward-Looking Statements	105

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For purposes of this discussion, “Brighthouse Financial,” the “Company,” “we,” “our” and “us” refer to Brighthouse Financial, Inc. and its subsidiaries, and “BHF” refers solely to Brighthouse Financial, Inc., the ultimate holding company for all of our subsidiaries, and not to any of its subsidiaries. This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with (i) the Interim Condensed Consolidated Financial Statements and related notes included elsewhere herein; (ii) our Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report”) filed with the U.S. Securities and Exchange Commission (“SEC”) on February 23, 2023; (iii) our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 (the “First Quarter Form 10-Q”) filed with the SEC on May 9, 2023; (iv) our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (the “Second Quarter Form 10-Q” and, together with the First Quarter Form 10-Q, the “Quarterly Reports”) filed with the SEC on August 9, 2023; and (v) our current reports on Form 8-K filed in 2023.

Introduction

This Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to help the reader understand the results of operations, financial condition and cash flows of Brighthouse Financial for the periods indicated. Prior to discussing our results of operations, we present information that we believe is useful to understanding the discussion of our financial results. This information precedes our results of operations discussion and is most beneficial when read in the sequence presented. A summary of key informational sections is as follows:

•“Executive Summary” provides summarized information regarding our business, segments and financial results.

•“Industry Trends and Uncertainties” discusses updates and changes to a number of trends and uncertainties included in our 2022 Annual Report that we believe may materially affect our future financial condition, results of operations or cash flows.

•“Summary of Critical Accounting Estimates” explains the most critical estimates and judgments applied in determining our results in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

•“Non-GAAP and Other Financial Disclosures” defines key financial measures presented in our results of operations discussion that are not calculated in accordance with GAAP but are used by management in evaluating company and segment performance. As described in this section, adjusted earnings is presented by key business activities which are derived, but different, from the line items presented in the GAAP statements of operations. This section also refers to certain other terms used to describe our insurance business and financial and operating metrics but is not intended to be exhaustive.

Our Results of Operations discussion and analysis presents a review for the three months and nine months ended September 30, 2023 and 2022 and period-over-period, as well as year-over-year, comparisons between these periods.

Certain amounts presented in prior periods within the following discussions of our financial results have been reclassified to conform with the current year presentation.

Executive Summary

We are one of the largest providers of annuity and life insurance products in the U.S. through multiple independent distribution channels and marketing arrangements with a diverse network of distribution partners. We are organized into three segments: (i) Annuities, (ii) Life and (iii) Run-off, which consists of products that are no longer actively sold and are separately managed. In addition, we report certain of our results of operations in Corporate & Other. See “Business — Segments and Corporate & Other” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Executive Summary” included in our 2022 Annual Report, as well as Note 3 of the Notes to the Interim Condensed Consolidated Financial Statements for further information regarding our segments and Corporate & Other.

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Net income (loss) available to shareholders and adjusted earnings, a non-GAAP financial measure, were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Income (loss) available to shareholders before provision for income tax	$	562	$	485	$	(381)	$	4,610
Less: Provision for income tax expense (benefit)	109		97		(109)		945
Net income (loss) available to shareholders (1)	$	453	$	388	$	(272)	$	3,665
Pre-tax adjusted earnings, less net income (loss) attributable to noncontrolling interests and preferred stock dividends	$	401	$	141	$	965	$	781
Less: Provision for income tax expense (benefit)	75		26		173		142
Adjusted earnings	$	326	$	115	$	792	$	639

__________________

(1)We use the term “net income (loss) available to shareholders” to refer to “net income (loss) available to Brighthouse Financial, Inc.’s common shareholders” throughout the results of operations discussions.

For the three months ended September 30, 2023, we had net income available to shareholders of $453 million and adjusted earnings of $326 million compared to net income available to shareholders of $388 million and adjusted earnings of $115 million for the three months ended September 30, 2022. Net income available to shareholders for the three months ended September 30, 2023 primarily reflects net favorable changes in the estimated fair value of our variable annuity guaranteed benefit riders due to market factors and favorable pre-tax adjusted earnings. These favorable impacts were partially offset by an unfavorable change in the estimated fair value of freestanding interest rate derivatives we use to hedge our universal life with secondary guarantees (“ULSG”) business resulting from increasing long-term interest rates and net investment losses on sales of fixed maturity securities.

For the nine months ended September 30, 2023, we had net loss available to shareholders of $272 million and adjusted earnings of $792 million compared to net income available to shareholders of $3.7 billion and adjusted earnings of $639 million for the nine months ended September 30, 2022. Net loss available to shareholders for the nine months ended September 30, 2023 primarily reflects net unfavorable changes in the estimated fair value of our variable annuity guaranteed benefit riders due to market factors, an unfavorable change in the estimated fair value of freestanding interest rate derivatives we use to hedge our ULSG business resulting from increasing long-term interest rates, and net investment losses on sales of fixed maturity securities and net investment losses on mortgage loans. These unfavorable impacts were partially offset by favorable pre-tax adjusted earnings.

See “— Non-GAAP and Other Financial Disclosures.” See “— Results of Operations” for a detailed discussion of our results.

Industry Trends and Uncertainties

Throughout this Management’s Discussion and Analysis of Financial Condition and Results of Operations, we discuss a number of trends and uncertainties that we believe may materially affect our future financial condition, results of operations or cash flows. Where these trends or uncertainties are specific to a particular aspect of our business, we often include such a discussion under the relevant caption of this Management’s Discussion and Analysis of Financial Condition and Results of Operations, as part of our broader analysis of that area of our business. Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends and Uncertainties” included in our 2022 Annual Report, as amended or supplemented by our subsequent Quarterly Reports and herein, for a comprehensive discussion of some of the key general trends and uncertainties that have influenced the development of our business and our historical financial performance and that we believe will continue to influence our business and results of operations in the future.

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Financial and Economic Environment

Our business and results of operations are materially affected by conditions in the capital markets and the economy generally. Stressed conditions, volatility and disruptions in the capital markets or financial asset classes can have an adverse effect on us. Equity market performance can affect our profitability for variable annuities and other separate account products as a result of the effects it has on product demand, revenues, expenses, reserves and our risk management effectiveness. The level of long-term interest rates and the shape of the yield curve can have a negative effect on the profitability for variable annuities and the demand for, and the profitability of, spread-based products such as fixed annuities, index-linked annuities and universal life insurance. Low interest rates and risk premium, including credit spread, affect new money rates on invested assets and the cost of product guarantees. Insurance premium growth and demand for our products is impacted by the general health of U.S. economic activity. A sustained or material increase in inflation could also affect our business in several ways. During inflationary periods, the value of fixed income investments falls which could increase realized and unrealized losses. Interest rates have increased and may continue to increase due to central bank policy responses to combat inflation, which may positively impact our business in certain respects, but could also increase the risk of a recession or an equity market downturn and could negatively impact various portions of our business, including our investment portfolio. Inflation also increases our expenses (including, among others, for labor and third-party services), potentially putting pressure on profitability if such costs cannot be passed through to policyholders in our product prices. Prolonged and elevated inflation could adversely affect the financial markets and the economy generally and dispelling it may require governments to pursue a restrictive fiscal and monetary policy, which could constrain overall economic activity and inhibit revenue growth. Events involving limited liquidity, defaults, nonperformance or other adverse developments that affect financial institutions or the financial services industry generally, or concerns or rumors about events of these kinds or other similar risks, could adversely affect market-wide liquidity, which could increase the risk of a recession or an equity market downturn and negatively impact various portions of our business, including our investment portfolio. See “Risk Factors — Economic Environment and Capital Markets-Related Risks — If difficult conditions in the capital markets and the U.S. economy generally persist or are perceived to persist, they may materially adversely affect our business and results of operations” and “Risk Factors — Risks Related to our Investment Portfolio — Our investment portfolio is subject to significant financial risks both in the U.S. and global financial markets, including credit risk, interest rate risk, inflation risk, market valuation risk, liquidity risk, real estate risk, derivatives risk, and other factors outside our control, the occurrence of any of which could have a material adverse effect on our financial condition and results of operations” included in our 2022 Annual Report.

We continue to closely monitor political and economic conditions that might contribute to market volatility and their impact on our business operations, investment portfolio and derivatives, such as global inflation, uncertainty and instability in certain asset classes (including commercial real estate), supply chain disruptions and recent geopolitical conflicts, including in Europe and the Middle East. See “— Investments — Current Environment” herein, as well as “Risk Factors — Economic Environment and Capital Markets-Related Risks,” “Risk Factors — Risks Related to our Investment Portfolio,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management Strategies,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends and Uncertainties” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations —Investments” included in our 2022 Annual Report for a detailed discussion of financial and economic impacts on our business, including the potential impacts of interest rate risk and inflation risk on our investments and overall business.

Regulatory Developments

Our insurance subsidiaries and Brighthouse Reinsurance Company of Delaware (“BRCD”) are regulated primarily at the state level, with some products and services also subject to federal regulation. In addition, BHF and its insurance subsidiaries are subject to regulation under the insurance holding company laws of various U.S. jurisdictions. Furthermore, some of our operations, products and services are subject to the Employee Retirement Income Security Act of 1974, consumer protection laws, securities, broker-dealer and investment advisor regulations, as well as environmental and unclaimed property laws and regulations. See “Business — Regulation,” as well as “Risk Factors — Regulatory and Legal Risks” included in our 2022 Annual Report, as amended or supplemented by our subsequent Quarterly Reports under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends and Uncertainties — Regulatory Developments.”

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Summary of Critical Accounting Estimates

The preparation of financial statements in conformity with GAAP requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the Interim Condensed Consolidated Financial Statements.

The most critical estimates include those used in determining:

•liability for future policy benefits;

•estimated fair values of market risk benefits (“MRB”);

•estimated fair values of freestanding derivatives and the recognition and estimated fair value of embedded derivatives requiring bifurcation; and

•measurement of income taxes and the valuation of deferred tax assets.

In applying our accounting policies, we make subjective and complex judgments that frequently require estimates about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to our business and operations. Actual results could differ from these estimates.

In connection with the adoption of new guidance on long-duration contracts (Accounting Standards Update 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (“LDTI”)), effective January 1, 2023, the Company updated its impacted critical accounting estimates. The impacted critical accounting estimates are described in our First Quarter Form 10-Q in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates” and in Note 1 of the Notes to the Interim Condensed Consolidated Financial Statements. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates” in the 2022 Annual Report for a description of income taxes and the valuation of deferred tax assets, which remain unchanged following the adoption of LDTI.

Non-GAAP and Other Financial Disclosures

Our definitions of non-GAAP and other financial measures may differ from those used by other companies.

Non-GAAP Financial Disclosures

Adjusted Earnings

In this report, we present adjusted earnings as a measure of our performance that is not calculated in accordance with GAAP. Adjusted earnings is used by management to evaluate performance and facilitate comparisons to industry results. We believe the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of our performance by the investor community by highlighting the results of operations and the underlying profitability drivers of our business. Adjusted earnings should not be viewed as a substitute for net income (loss) available to Brighthouse Financial, Inc.’s common shareholders, which is the most directly comparable financial measure calculated in accordance with GAAP. See “— Results of Operations” for a reconciliation of adjusted earnings to net income (loss) available to Brighthouse Financial, Inc.’s common shareholders.

Adjusted earnings, which may be positive or negative, focuses on our 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); 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 are significant items excluded from total expenses in calculating adjusted earnings:

•Change in MRBs; and

•Change in fair value of the crediting rate on experience-rated contracts (“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.

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We present adjusted earnings in a manner consistent with management’s view of the primary business activities that drive the profitability of our core businesses. The following table illustrates how each component of adjusted earnings is calculated from the GAAP statements of operations line items:

Component of Adjusted Earnings		How Derived from GAAP (1)
(i)	Fee income	(i)	Universal life and investment-type product policy fees plus Other revenues.
(ii)	Net investment spread	(ii)	Net investment income plus Investment Hedge Adjustments reduced by Interest credited to policyholder account balances (excluding Market Value Adjustments) and interest on future policy benefits.
(iii)	Insurance-related activities	(iii)	Premiums less Policyholder benefits and claims, excluding interest on future policy benefits.
(iv)	Amortization of DAC and VOBA	(iv)	Amortization of deferred policy acquisition costs (“DAC”) and value of business acquired (“VOBA”).
(v)	Other expenses	(v)	Other expenses.
(vi)	Provision for income tax expense (benefit)	(vi)	Tax impact of the above items, 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.

__________________

(1)Italicized items indicate GAAP statements of operations line items.

Consistent with GAAP guidance for segment reporting, adjusted earnings is also our GAAP measure of segment performance. Accordingly, we report adjusted earnings by segment in Note 3 of the Notes to the Interim Condensed Consolidated Financial Statements.

Adjusted Net Investment Income

We present adjusted net investment income to measure our performance for management purposes, and we believe it enhances the understanding of our investment portfolio results. Adjusted net investment income represents GAAP net investment income plus Investment Hedge Adjustments. For a reconciliation of adjusted net investment income to net investment income, the most directly comparable GAAP measure, see table note (3) to the summary yield table located in “— Investments — Current Environment — Investment Portfolio Results.”

Other Financial Disclosures

Similar to adjusted net investment income, we present net investment income yields as a performance measure we believe enhances the understanding of our investment portfolio results. Net investment income yields are calculated on adjusted net investment income as a percentage of average quarterly asset carrying values. Asset carrying values exclude unrealized gains (losses), collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties. Investment fee and expense yields are calculated as a percentage of average quarterly asset estimated fair values. Asset estimated fair values exclude collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties.

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Results of Operations

Annual Actuarial Review

We typically conduct our annual actuarial review (“AAR”) in the third quarter of each year. As part of the 2023 AAR, for our ULSG business, we increased the long-term general account earned rate, driven by an increase in the mean reversion rate from 3.50% to 3.75%. Also, with respect to our ULSG business, we updated assumptions regarding policyholder behavior, including mortality, premium persistency, lapses, withdrawals and maintenance expenses. For our variable annuity business, we updated our annuitization, mortality, lapses and withdrawals, as well as separate account assumptions, including fund fees, allocations and volatility. For term participating and non-participating whole life insurance, we updated assumptions regarding mortality and lapses.

As part of the 2022 AAR, for our ULSG business, we increased the long-term general account earned rate, driven by an increase in the mean reversion rate from 3.00% to 3.50%. Also, with respect to our ULSG business, we updated assumptions regarding policyholder behavior, including mortality, premium persistency, lapses, withdrawals and maintenance expenses. For our variable annuity business, we updated our fund allocations, mortality, lapses and withdrawals. For term and non-participating whole life insurance, we updated assumptions regarding mortality and lapses.

The impact on income (loss) available to shareholders before provision for income tax was as follows:

	Nine Months Ended September 30,
	2023		2022
	(In millions)
Market risk benefits	$	(251)	$	(210)
Included in pre-tax adjusted earnings:
Other annuity business	15		(69)
Life business	(90)		(20)
Run-off	119		162
Total included in pre-tax adjusted earnings	44		73
Total impact on income (loss) available to shareholders before provision for income tax	$	(207)	$	(137)

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Consolidated Results for the Three Months and Nine Months Ended September 30, 2023 and 2022

Unless otherwise noted, all amounts in the following discussions of our results of operations are stated before income tax except for adjusted earnings, which are presented net of income tax.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Revenues
Premiums	$	194	$	162	$	602	$	495
Universal life and investment-type product policy fees	542		597		1,749		1,886
Net investment income	1,202		877		3,457		3,089
Other revenues	125		122		348		378
Net investment gains (losses)	(53)		(45)		(213)		(179)
Net derivative gains (losses)	(840)		(592)		(3,226)		1,331
Total revenues	1,170		1,121		2,717		7,000
Expenses
Policyholder benefits and claims (including liability remeasurement gains (losses) of ($234), $35, ($234) and $35, respectively)	590		534		1,966		1,926
Interest credited to policyholder account balances	426		405		1,300		937
Amortization of DAC and VOBA	155		159		468		474
Change in market risk benefits	(1,064)		(984)		(2,170)		(2,625)
Interest expense on debt	38		38		114		114
Other expenses	435		457		1,339		1,482
Total expenses	580		609		3,017		2,308
Income (loss) before provision for income tax	590		512		(300)		4,692
Provision for income tax expense (benefit)	109		97		(109)		945
Net income (loss)	481		415		(191)		3,747
Less: Net income (loss) attributable to noncontrolling interests	2		2		4		4
Net income (loss) attributable to Brighthouse Financial, Inc.	479		413		(195)		3,743
Less: Preferred stock dividends	26		25		77		78
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders	$	453	$	388	$	(272)	$	3,665

The components of net income (loss) available to shareholders were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Change in market risk benefits	$	1,064	$	984	$	2,170	$	2,625
Net investment gains (losses)	(53)		(45)		(213)		(179)
Net derivative gains (losses), excluding investment hedge adjustments	(865)		(615)		(3,312)		1,293
Market value adjustments	15		20		9		90
Pre-tax adjusted earnings, less net income (loss) attributable to noncontrolling interests and preferred stock dividends	401		141		965		781
Income (loss) available to shareholders before provision for income tax	562		485		(381)		4,610
Provision for income tax expense (benefit)	109		97		(109)		945
Net income (loss) available to shareholders	$	453	$	388	$	(272)	$	3,665

Change in Market Risk Benefits. The change in MRBs reflects changes in the projected value of annuity guaranteed benefits discounted at current risk-free rates, plus a nonperformance risk spread that is locked-in at policy issuance.

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Net Derivative Gains (Losses). We have derivative instruments for which changes in estimated fair value are recognized in net derivative gains (losses).

Freestanding Derivatives. We have freestanding derivatives that economically hedge certain invested assets and insurance liabilities. The majority of this hedging activity is focused in the following areas:

•use of a proprietary mix of derivative instruments to hedge variable annuity guaranteed benefit riders against adverse changes in capital markets;

•as part of the Company’s macro interest rate hedging program, the use of interest rate swaps, swaptions and interest rate forwards in connection with our ULSG business;

•use of interest rate swaps when we have duration mismatches where suitable assets with maturities similar to those of our long-dated liabilities are not readily available in the market and use of interest rate forwards hedging reinvestment risk from maturing assets with higher yields than currently available in the market that support long-dated liabilities;

•use of foreign currency swaps when we hold fixed maturity securities denominated in foreign currencies that are matching insurance liabilities denominated in U.S. dollars; and

•use of equity index options to hedge index-linked annuity products against adverse changes in equity markets.

Embedded Derivatives. The changes in liability values of our fixed index-linked annuity and Shield® Level Annuity (“Shield”) products that result from changes in the underlying equity index are accounted for as embedded derivatives. In addition, certain ceded reinsurance agreements in our Life and Run-off segments are written on a coinsurance with funds withheld basis. The funds withheld component is accounted for as an embedded derivative with changes in the estimated fair value recognized in net income (loss) in the period in which they occur.

Market value adjustments. See “— Non-GAAP and Other Financial Disclosures — Non-GAAP Financial Disclosures — Adjusted Earnings.”

Pre-tax Adjusted Earnings. See “— Non-GAAP and Other Financial Disclosures — Non-GAAP Financial Disclosures — Adjusted Earnings.”

Three Months Ended September 30, 2023 Compared with the Three Months Ended September 30, 2022

Income available to shareholders before provision for income tax was $562 million ($453 million, net of income tax), an increase of $77 million ($65 million, net of income tax) from income available to shareholders before provision for income tax of $485 million ($388 million, net of income tax) in the prior period.

The increase in income before provision for income tax was driven by higher pre-tax adjusted earnings, as discussed in greater detail below.

The increase in income before provision for income taxes was partially offset by the following unfavorable items:

•losses from variable annuity guaranteed benefit riders, see “— Annuity Guaranteed Benefits and Shield Annuity Liabilities for the Three Months and Nine Months Ended September 30, 2023 and 2022”; and

•the impact of long-term interest rates on interest rate derivatives used to manage interest rate exposure in our ULSG business, as the long-term interest rate increased more in the current period resulting in a loss of $500 million and increased less in the prior period resulting in a loss of $483 million.

The provision for income tax, expressed as a percentage of income (loss) before provision for income tax, resulted in an effective tax rate of 18% in the current period compared to 19% in the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction and tax credits.

Nine Months Ended September 30, 2023 Compared with the Nine Months Ended September 30, 2022

Loss available to shareholders before provision for income tax was $381 million ($272 million, net of income tax), a decrease of $5.0 billion ($3.9 billion, net of income tax) from income available to shareholders before provision for income tax of $4.6 billion ($3.7 billion, net of income tax) in the prior period.

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The decrease in income before provision for income tax was driven by losses from variable annuity guaranteed benefit riders, see “— Annuity Guaranteed Benefits and Shield Annuity Liabilities for the Three Months and Nine Months Ended September 30, 2023 and 2022.”

The decrease in income before provision for income tax was partially offset by the following favorable items:

•the impact of long-term interest rates on interest rate derivatives used to manage interest rate exposure in our ULSG business, as the long-term interest rate increased less in the current period resulting in a loss of $443 million and increased more in the prior period resulting in a loss of $1.7 billion; and

•higher pre-tax adjusted earnings, as discussed in greater detail below.

The provision for income tax, expressed as a percentage of income (loss) before provision for income tax, resulted in an effective tax rate of 36% in the current period compared to 20% in the prior period. The increase in the effective tax rate was driven by the decrease in income before provision for income tax as discussed above. Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction, tax credits and current period non-recurring items.

Reconciliation of Net Income (Loss) Available to Shareholders to Adjusted Earnings

The reconciliation of net income (loss) available to shareholders to adjusted earnings was as follows:

	Three Months Ended September 30, 2023
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Net income (loss) available to shareholders	$	1,017	$	(88)	$	(573)	$	97	$	453
Add: Provision for income tax expense (benefit)	75		(20)		182		(128)		109
Income (loss) available to shareholders before provision for income tax	1,092		(108)		(391)		(31)		562
Less: Net investment gains (losses)	(31)		(10)		(12)		—		(53)
Less: Net derivative gains (losses), excluding investment hedge adjustments of $25	(334)		(5)		(514)		(12)		(865)
Less: Change in market risk benefits	1,064		—		—		—		1,064
Less: Market value adjustments	—		—		15		—		15
Pre-tax adjusted earnings, less net income (loss) attributable to noncontrolling interests and preferred stock dividends	393		(93)		120		(19)		401
Less: Provision for income tax expense (benefit)	74		(20)		25		(4)		75
Adjusted earnings	$	319	$	(73)	$	95	$	(15)	$	326

	Three Months Ended September 30, 2022
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Net income (loss) available to shareholders	$	869	$	(29)	$	(600)	$	148	$	388
Add: Provision for income tax expense (benefit)	96		(10)		114		(103)		97
Income (loss) available to shareholders before provision for income tax	965		(39)		(486)		45		485
Less: Net investment gains (losses)	(26)		(5)		(27)		13		(45)
Less: Net derivative gains (losses), excluding investment hedge adjustments of $23	(239)		10		(459)		73		(615)
Less: Change in market risk benefits	984		—		—		—		984
Less: Market value adjustments	—		—		20		—		20
Pre-tax adjusted earnings, less net income (loss) attributable to noncontrolling interests and preferred stock dividends	246		(44)		(20)		(41)		141
Less: Provision for income tax expense (benefit)	44		(10)		(4)		(4)		26
Adjusted earnings	$	202	$	(34)	$	(16)	$	(37)	$	115

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	Nine Months Ended September 30, 2023
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Net income (loss) available to shareholders	$	99	$	(76)	$	(60)	$	(235)	$	(272)
Add: Provision for income tax expense (benefit)	209		(18)		(451)		151		(109)
Income (loss) available to shareholders before provision for income tax	308		(94)		(511)		(84)		(381)
Less: Net investment gains (losses)	(159)		(17)		(26)		(11)		(213)
Less: Net derivative gains (losses), excluding investment hedge adjustments of $86	(2,840)		(2)		(459)		(11)		(3,312)
Less: Change in market risk benefits	2,170		—		—		—		2,170
Less: Market value adjustments	—		—		9		—		9
Pre-tax adjusted earnings, less net income (loss) attributable to noncontrolling interests and preferred stock dividends	1,137		(75)		(35)		(62)		965
Less: Provision for income tax expense (benefit)	213		(18)		(8)		(14)		173
Adjusted earnings	$	924	$	(57)	$	(27)	$	(48)	$	792

	Nine Months Ended September 30, 2022
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Net income (loss) available to shareholders	$	6,047	$	43	$	(2,584)	$	159	$	3,665
Add: Provision for income tax expense (benefit)	325		14		794		(188)		945
Income (loss) available to shareholders before provision for income tax	6,372		57		(1,790)		(29)		4,610
Less: Net investment gains (losses)	(105)		(30)		(63)		19		(179)
Less: Net derivative gains (losses), excluding investment hedge adjustments of $38	2,774		12		(1,628)		135		1,293
Less: Change in market risk benefits	2,625		—		—		—		2,625
Less: Market value adjustments	—		—		90		—		90
Pre-tax adjusted earnings, less net income (loss) attributable to noncontrolling interests and preferred stock dividends	1,078		75		(189)		(183)		781
Less: Provision for income tax expense (benefit)	202		14		(40)		(34)		142
Adjusted earnings	$	876	$	61	$	(149)	$	(149)	$	639

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Consolidated Results for the Three Months and Nine Months Ended September 30, 2023 and 2022 — Adjusted Earnings

The components of adjusted earnings were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Fee income	$	667	$	719	$	2,097	$	2,264
Net investment spread	758		449		2,152		2,023
Insurance-related activities	(368)		(346)		(1,282)		(1,354)
Amortization of DAC and VOBA	(155)		(159)		(468)		(474)
Other expenses	(473)		(495)		(1,453)		(1,596)
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends	28		27		81		82
Pre-tax adjusted earnings, less net income (loss) attributable to noncontrolling interests and preferred stock dividends	401		141		965		781
Provision for income tax expense (benefit)	75		26		173		142
Adjusted earnings	$	326	$	115	$	792	$	639

Three Months Ended September 30, 2023 Compared with the Three Months Ended September 30, 2022

Adjusted earnings were $326 million in the current period, an increase of $211 million.

Key net favorable impacts were:

•higher net investment spread due to:

◦higher returns on other limited partnerships;

◦higher average invested assets resulting from positive net flows in the general account;

◦higher investment yields on our fixed income portfolio, as proceeds from maturing investments and the growth in the investment portfolio were invested at higher yields than the portfolio average;

◦higher returns from short-term investments; and

◦lower interest credited to policyholders due to changes made in the prior period in connection with the AAR along with current period actuarial modeling improvements, net of higher interest credited consistent with higher account balances;

partially offset by

◦lower returns on real estate limited partnerships and limited liability companies (“LLC”); and

•lower other expenses due to:

◦higher systems conversion costs in the prior period; and

◦lower asset-based variable annuity expenses resulting from lower average separate account balances, a portion of which is offset in fee income.

Key unfavorable impacts were:

•lower fee income due to:

◦a decline in the net cost of insurance fees driven by the aging in-force business in our Run-off segment; and

◦lower asset-based fees resulting from lower average separate account balances, a portion of which is offset in other expenses; and

•higher net costs associated with insurance-related activities due to:

◦a net increase in liability balances resulting from year-over-year changes made in connection with the AAR in our Life, Run-off, and Annuities segments;

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partially offset by

◦lower paid claims, net of reinsurance, in our Run-off segment.

The provision for income tax, expressed as a percentage of pre-tax adjusted earnings, resulted in an effective tax rate of 17% in the current period compared to 15% in the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction and tax credits.

Nine Months Ended September 30, 2023 Compared with the Nine Months Ended September 30, 2022

Adjusted earnings were $792 million in the current period, an increase of $153 million.

Key net favorable impacts were:

•lower other expenses due to:

◦the settlement of a reinsurance-related matter in the prior period;

◦lower asset-based variable annuity expenses resulting from lower average separate account balances, a portion of which is offset in fee income;

◦higher systems conversion costs in the prior period; and

◦lower transition services agreement expenses;

partially offset by

◦lower ceded cost of insurance expenses consistent with favorable equity market returns in our Life segment, which is offset in fee income; and

◦higher deferred compensation and operational expenses; and

•higher net investment spread due to:

◦higher investment yields and average invested long-term assets from funding agreements issued in connection with our institutional spread margin business;

◦higher average invested assets resulting from positive net flows in the general account;

◦higher investment yields on our fixed income portfolio, as proceeds from maturing investments and the growth in the investment portfolio were invested at higher yields than the portfolio average; and

◦higher returns from short-term investments;

partially offset by

◦lower returns on real estate limited partnerships and LLCs;

◦lower returns on other limited partnerships; and

◦higher interest credited to policyholders due to higher account balances, net of changes made in the prior period in connection with the AAR, and current period actuarial modeling improvements; and

•lower net costs associated with insurance-related activities due to:

◦lower liabilities in our Run-off segment from the impact of new reinsurance agreements entered into in the prior period;

◦lower paid claims, net of reinsurance, in our Run-off and Life segments; and

◦an increase in income annuity underwriting margin;

partially offset by

◦a net increase in liability balances resulting from year-over-year changes made in connection with the AAR in our Life, Run-off, and Annuities segments.

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Key net unfavorable impacts were:

•lower net fee income due to:

◦lower asset-based fees resulting from lower average separate account balances, a portion of which is offset in other expenses; and

◦a decline in the net cost of insurance fees driven by the aging in-force business in our Run-off segment;

partially offset by

◦lower ceded cost of insurance fees consistent with favorable equity market returns in our Life segment, which is mostly offset in other expenses.

The provision for income tax, expressed as a percentage of pre-tax adjusted earnings, resulted in an effective tax rate of 17% in the current period compared to 16% in the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction, tax credits and current period non-recurring items.

Segments and Corporate & Other Results for the Three Months and Nine Months Ended September 30, 2023 and 2022 — Adjusted Earnings

Annuities

The components of adjusted earnings for our Annuities segment were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Fee income	$	494	$	514	$	1,533	$	1,690
Net investment spread	406		264		1,126		983
Insurance-related activities	(37)		(56)		(101)		(152)
Amortization of DAC and VOBA	(129)		(130)		(388)		(386)
Other expenses	(341)		(346)		(1,033)		(1,057)
Pre-tax adjusted earnings	393		246		1,137		1,078
Provision for income tax expense (benefit)	74		44		213		202
Adjusted earnings	$	319	$	202	$	924	$	876

A significant portion of our adjusted earnings is driven by separate account balances related to our variable annuity business, as these balances determine asset-based fee income and commissions. The changes in our variable annuities separate account balances are presented in Note 4 of the Notes to the Interim Condensed Consolidated Financial Statements.

Three Months Ended September 30, 2023 Compared with the Three Months Ended September 30, 2022

Adjusted earnings were $319 million in the current period, an increase of $117 million.

Key net favorable impacts were:

•higher net investment spread due to:

◦higher investment yields on our fixed income portfolio, as proceeds from maturing investments and the growth in the investment portfolio were invested at higher yields than the portfolio average;

◦higher average invested assets resulting from positive net flows in the general account;

◦lower interest credited to policyholders due to changes made in the prior period in connection with the AAR and current period actuarial modeling improvements, net of higher interest credited consistent with higher account balances;

◦higher returns from short-term investments; and

◦higher returns on other limited partnerships;

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partially offset by

◦lower returns on real estate limited partnerships and LLCs;

•lower costs associated with insurance-related activities due a net decrease in liability balances resulting from changes made in the current period in connection with the AAR; and

•lower other expenses due to lower asset-based variable annuity expenses resulting from lower average separate account balances, a portion of which is offset in fee income.

Key unfavorable impact was lower asset-based fees resulting from lower average separate account balances, a portion of which is offset in other expenses.

The provision for income tax, expressed as a percentage of pre-tax adjusted earnings, resulted in an effective tax rate of 19% in the current period compared to 18% in the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction.

Nine Months Ended September 30, 2023 Compared with the Nine Months Ended September 30, 2022

Adjusted earnings were $924 million in the current period, an increase of $48 million.

Key net favorable impacts were:

•higher net investment spread due to:

◦higher average invested assets resulting from positive net flows in the general account;

◦higher investment yields on our fixed income portfolio, as proceeds from maturing investments and the growth in the investment portfolio were invested at higher yields than the portfolio average; and

◦higher returns from short-term investments;

partially offset by

◦lower returns on real estate limited partnerships and LLCs; and

◦higher interest credited to policyholders due to higher account balances, net of changes made in the prior period in connection with the AAR, and current period actuarial modeling improvements;

•lower costs associated with insurance-related activities due to:

◦an increase in income annuity underwriting margins; and

◦a net decrease in liability balances resulting from changes made in the current period in connection with the AAR; and

•lower other expenses due to:

◦lower asset-based variable annuity expenses resulting from lower average separate account balances, a portion of which is offset in fee income; and

◦lower transition services agreement expenses;

partially offset by

◦higher deferred compensation and operational expenses.

Key unfavorable impact was lower asset-based fees resulting from lower average separate account balances, a portion of which is offset in other expenses.

The provision for income tax, expressed as a percentage of pre-tax adjusted earnings, resulted in an effective tax rate of 19% in both the current period and prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impact of the dividends received deduction.

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Life

The components of adjusted earnings for our Life segment were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Fee income	$	60	$	63	$	200	$	161
Net investment spread	62		28		183		222
Insurance-related activities	(150)		(67)		(234)		(146)
Amortization of DAC and VOBA	(26)		(29)		(80)		(88)
Other expenses	(39)		(39)		(144)		(74)
Pre-tax adjusted earnings	(93)		(44)		(75)		75
Provision for income tax expense (benefit)	(20)		(10)		(18)		14
Adjusted earnings	$	(73)	$	(34)	$	(57)	$	61

Three Months Ended September 30, 2023 Compared with the Three Months Ended September 30, 2022

Adjusted earnings were a loss of $73 million in the current period, a decrease of $39 million.

Key unfavorable impacts were:

•higher net costs associated with insurance-related activities due to:

◦a net increase in liability balances resulting from year-over-year changes made in connection with the AAR; and

◦higher paid claims, net of reinsurance.

Key favorable impact was higher net investment spread due to higher returns on other limited partnerships.

The provision for income tax, expressed as a percentage of pre-tax adjusted earnings, resulted in an effective tax rate of 22% in the current period compared to 23% in the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impact of the dividends received deduction.

Nine Months Ended September 30, 2023 Compared with the Nine Months Ended September 30, 2022

Adjusted earnings were a loss of $57 million in the current period, a decrease of $118 million.

Key net unfavorable impacts were:

•higher net costs associated with insurance-related activities due to:

◦a net increase in liability balances resulting from year-over-year changes made in connection with the AAR;

partially offset by

◦lower paid claims, net of reinsurance;

•higher other expenses due to:

◦lower ceded cost of insurance expenses consistent with favorable equity market returns, which is offset in fee income; and

◦higher deferred compensation and operational expenses; and

•lower net investment spread due to:

◦lower returns on other limited partnerships; and

◦lower income from our securities lending program.

Key favorable impact was higher fee income due to lower ceded cost of insurance fees consistent with favorable equity market returns, which is offset in other expenses.

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The provision for income tax, expressed as a percentage of pre-tax adjusted earnings, resulted in an effective tax rate of 24% in the current period compared to 19% in the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impact of the dividends received deduction.

Run-off

The components of adjusted earnings for our Run-off segment were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Fee income	$	111	$	142	$	368	$	413
Net investment spread	233		99		667		701
Insurance-related activities	(181)		(223)		(947)		(1,055)
Amortization of DAC and VOBA	—		—		—		—
Other expenses	(43)		(38)		(123)		(248)
Pre-tax adjusted earnings	120		(20)		(35)		(189)
Provision for income tax expense (benefit)	25		(4)		(8)		(40)
Adjusted earnings	$	95	$	(16)	$	(27)	$	(149)

Three Months Ended September 30, 2023 Compared with the Three Months Ended September 30, 2022

Adjusted earnings were $95 million in the current period, an increase of $111 million.

Key net favorable impacts were:

•higher net investment spread due to higher returns on other limited partnerships; and

•lower costs associated with insurance-related activities due to:

◦lower paid claims, net of reinsurance;

partially offset by

◦a net increase in liability balances resulting from year-over-year changes made in connection with the AAR.

Key unfavorable impact was lower fee income due to a decline in the net cost of insurance fees driven by the aging in-force business.

The provision for income tax, expressed as a percentage of pre-tax adjusted earnings, resulted in an effective tax rate of 21% in the current period compared to 20% in the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impact of the dividends received deduction.

Nine Months Ended September 30, 2023 Compared with the Nine Months Ended September 30, 2022

Adjusted earnings were a loss of $27 million in the current period, a lower loss of $122 million.

Key net favorable impacts were:

•lower other expenses due to the settlement of a reinsurance-related matter in the prior period; and

•lower costs associated with insurance-related activities due to:

◦lower liabilities from the impact of new reinsurance agreements entered into in the prior period; and

◦lower paid claims, net of reinsurance;

partially offset by

◦a net increase in liability balances resulting from year-over-year changes made in connection with the AAR.

Key unfavorable impacts were:

•lower fee income due to a decline in the net cost of insurance fees driven by the aging in-force business; and

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•lower net investment spread due to:

◦lower average invested long-term assets; and

◦lower returns on other limited partnerships.

The provision for income tax, expressed as a percentage of pre-tax adjusted earnings, resulted in an effective tax rate of 23% in the current period compared to 21% in the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impact of the dividends received deduction.

Corporate & Other

The components of adjusted earnings for Corporate & Other were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Fee income	$	2	$	—	$	(4)	$	—
Net investment spread	57		58		176		117
Insurance-related activities	—		—		—		(1)
Amortization of DAC and VOBA	—		—		—		—
Other expenses	(50)		(72)		(153)		(217)
Less: Net income (loss) attributable to noncontrolling interests and preferred stock dividends	28		27		81		82
Pre-tax adjusted earnings, less net income (loss) attributable to noncontrolling interests and preferred stock dividends	(19)		(41)		(62)		(183)
Provision for income tax expense (benefit)	(4)		(4)		(14)		(34)
Adjusted earnings	$	(15)	$	(37)	$	(48)	$	(149)

Three Months Ended September 30, 2023 Compared with the Three Months Ended September 30, 2022

Adjusted earnings were a loss of $15 million in the current period, a lower loss of $22 million.

Key favorable impact was lower other expenses due to higher systems conversion costs in the prior period.

The provision for income tax, expressed as a percentage of pre-tax adjusted earnings, resulted in a lower effective tax rate in the current period compared to the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction and tax credits. We believe the effective tax rate for Corporate & Other is not generally meaningful, neither on a standalone basis nor for comparison to prior periods, since taxes for Corporate & Other are derived from the difference between the overall consolidated effective tax rate and total taxes for the combined operating segments.

Nine Months Ended September 30, 2023 Compared with the Nine Months Ended September 30, 2022

Adjusted earnings were a loss of $48 million in the current period, a lower loss of $101 million.

Key favorable impacts were:

•lower other expenses due to higher systems conversion costs in the prior period; and

•higher net investment spread due to:

◦higher investment yields and average invested long-term assets from funding agreements issued in connection with our institutional spread margin business; and

◦higher returns from short-term investments.

The provision for income tax, expressed as a percentage of pre-tax adjusted earnings, resulted in a lower effective tax rate in the current period compared to the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction, tax credits and current period non-recurring items. We believe the effective tax rate for Corporate & Other is not generally meaningful, neither on a standalone basis nor for comparison to prior periods, since taxes for Corporate & Other are derived from the difference between the overall consolidated effective tax rate and total taxes for the combined operating segments.

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Annuity Guaranteed Benefits and Shield Annuity Liabilities for the Three Months and Nine Months Ended September 30, 2023 and 2022

The overall impact on income (loss) available to shareholders before provision for income tax from the performance of annuity guaranteed benefits and Shield annuity liabilities, which includes (i) changes in the fair value of liabilities and reinsurance, (ii) fees net of claims and (iii) the mark-to-market of hedges, was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Market risk benefits mark-to-market	$	886	$	786	$	1,755	$	2,092
Annuity guaranteed benefit rider fees, net of claims	193		211		453		578
Ceded reinsurance	(15)		(13)		(38)		(45)
Total changes attributable to annuity guaranteed benefits	1,064		984		2,170		2,625
Variable annuity hedges	(1,186)		(772)		(894)		(1,277)
Shield embedded derivatives	773		549		(1,993)		4,002
Total	$	651	$	761	$	(717)	$	5,350

Market Risk Benefits Mark-to-Market. Annuity guaranteed rider benefits are accounted for as MRBs. MRBs related to guaranteed rider benefits represent the current estimated fair value of the obligation to protect policyholders against the possibility that a downturn in the markets will reduce the specified benefits that can be claimed under the base annuity contract. Any periods of significant or sustained downturns in equity markets, increased equity volatility, or reduced interest rates could result in an increase in the valuation of these liabilities. An increase in these liabilities would result in a decrease to our net income (loss) available to shareholders, which could be significant.

Annuity Guaranteed Benefit Rider Fees, Net of Claims. We earn fees from the guaranteed rider benefits, which are calculated using the policyholder’s minimum return based on their initial deposit (the “Benefit Base”). Fees calculated based on the Benefit Base are more stable in market downturns, compared to fees based on the account value because the Benefit Base excludes the impact of a decline in the market value of the policyholder’s account value. We use the fees directly earned from the guarantee riders to fund the reserves, future claims and costs associated with the hedges of market risks inherent in these liabilities. The future fees are included in the estimated fair value of MRB liabilities, with changes recorded in MRBs.

Variable Annuity Hedges and Reinsurance. We enter into freestanding derivatives to hedge certain aspects of the annuity guaranteed benefits accounted for as MRBs and index-linked crediting rates accounted for as embedded derivatives. Generally, the same market factors that impact the estimated fair value of the annuity guaranteed benefits impact the value of the hedges, though in the opposite direction. However, the changes in value of MRBs and related hedges may not be symmetrical and the divergence could be significant due to certain factors, including unhedged risks within MRBs. We may also use reinsurance to manage our exposure related to MRBs.

Shield Embedded Derivatives. Shield Annuities provide the contract holder the ability to participate in the appreciation of certain financial markets up to a stated level, while offering protection from a portion of declines in the applicable indices or benchmark. Shield embedded derivatives represent the estimated fair value of these features. We believe that Shield Annuities provide us with a risk offset to liabilities related to guaranteed rider benefits.

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management Strategies — Variable Annuity Exposure Risk Management” in our 2022 Annual Report for discussion of our management of our hedging strategy associated with our variable annuity business, which remains unchanged following the adoption of LDTI.

Three Months Ended September 30, 2023 Compared with the Three Months Ended September 30, 2022

Annuity guaranteed benefits and Shield annuity liabilities performance was favorable for the three months ended September 30, 2023, primarily driven by:

•decreases in annuity guaranteed benefits liabilities due to increasing interest rates, partially offset by decreasing equity markets and changes made in connection with the AAR;

•unfavorable changes in variable annuity hedges due to increasing long-term interest rates and decreasing equity markets; and

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•favorable changes in Shield embedded derivatives due to decreasing equity markets and increasing interest rates.

Annuity guaranteed benefits and Shield annuity liabilities performance was favorable for the three months ended September 30, 2022, primarily driven by:

•decreases in annuity guaranteed benefits liabilities due to increasing interest rates, partially offset by decreasing equity markets and changes made in connection with the AAR;

•unfavorable changes in variable annuity hedges due to increasing long-term interest rates; and

•favorable changes in Shield embedded derivatives due to decreasing equity markets, partially offset by increasing interest rates.

Nine Months Ended September 30, 2023 Compared with the Nine Months Ended September 30, 2022

Annuity guaranteed benefits and Shield annuity liabilities performance was unfavorable for the nine months ended September 30, 2023, primarily driven by:

•decreases in annuity guaranteed benefits liabilities due to increasing interest rates and equity markets, partially offset by changes made in connection with the AAR;

•unfavorable changes in variable annuity hedges due to increasing long-term interest rates; and

•unfavorable changes in Shield embedded derivatives due to increasing equity markets.

Annuity guaranteed benefits and Shield annuity liabilities performance was favorable for the nine months ended September 30, 2022, primarily driven by:

•decreases in annuity guaranteed benefits liabilities due to increasing interest rates, partially offset by decreasing equity markets and changes made in connection with the AAR;

•unfavorable changes in variable annuity hedges due to increasing long-term interest rates, partially offset by decreasing equity markets; and

•favorable changes in Shield embedded derivatives due to decreasing equity markets, partially offset by increasing interest rates.

Investments

Investment Risk Management Strategy

We manage the risks related to our investment portfolio through asset-type allocation as well as industry and issuer diversification. We also use risk limits to promote diversification by asset sector, avoid concentrations in any single issuer and limit overall aggregate credit and equity risk exposure. We manage real estate risk through geographic, property type and product type diversification and asset allocation. Interest rate risk is managed as part of our Asset Liability Management (“ALM”) strategies. We also utilize product design, such as the use of market value adjustment features and surrender charges to manage interest rate risk. These ALM strategies include maintaining an investment portfolio that targets a weighted average duration that reflects the duration of our estimated liability cash flow profile. For certain of our liability portfolios, it is not possible to invest assets for the full liability duration, thereby creating some asset/liability mismatch. We also use certain derivatives in the management of credit, interest rate, equity market and foreign currency exchange rate risks.

Investment Management Agreements

Other than our derivatives trading, which we manage in-house, we have engaged a select group of experienced external asset management firms to manage the investment of the assets comprising our general account portfolio and certain separate account assets of our insurance subsidiaries, as well as assets of BHF and our reinsurance subsidiary, BRCD.

Current Environment

Our business and results of operations are materially affected by conditions in capital markets and the economy, generally. As a U.S. insurance company, we are affected by the monetary policy of the Federal Reserve Board (the “Federal Reserve”) in the U.S. The Federal Reserve may increase or decrease the federal funds rate in the future, which may have an impact on the pricing levels of risk-bearing investments and may adversely impact the level of product sales. We are also affected by the monetary policy of central banks around the world due to the diversification of our investment portfolio. See “— Industry Trends and Uncertainties — Financial and Economic Environment.”

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In 2023, the Federal Reserve increased the target range for the federal funds rate four times — from between 4.25% and 4.50% to between 4.50% and 4.75% on February 1, 2023; to between 4.75% and 5.00% on March 22, 2023; to between 5.00% and 5.25% on May 3, 2023; and to between 5.25% and 5.50% on July 26, 2023. These target range increases have contributed to a decrease in the net unrealized gains in our investment portfolio, and any additional target increases could similarly contribute to further decreases.

In the current period, as a result of rising interest rates, the unrealized losses on our fixed maturity securities exceeded the unrealized gains. If interest rates continue to rise, our unrealized gains would decrease, and our unrealized losses would increase, perhaps substantially.

See “Risk Factors — Risks Related to Our Investment Portfolio — Our investment portfolio is subject to significant financial risks both in the U.S. and global financial markets, including credit risk, interest rate risk, inflation risk, market valuation risk, liquidity risk, real estate risk, derivatives risk, and other factors outside our control, the occurrence of any of which could have a material adverse effect on our financial condition and results of operations” included in our 2022 Annual Report.

Selected Sector Investments

Recent elevated levels of market volatility have affected the performance of various asset classes. See “Risk Factors — Risks Related to Our Investment Portfolio — Our investment portfolio is subject to significant financial risks both in the U.S. and global financial markets, including credit risk, interest rate risk, inflation risk, market valuation risk, liquidity risk, real estate risk, derivatives risk, and other factors outside our control, the occurrence of any of which could have a material adverse effect on our financial condition and results of operations,” and “Risk Factors — Risks Related to Our Investment Portfolio — Ongoing military actions, the continued threat of terrorism, climate change as well as other catastrophic events may adversely affect the value of our investment portfolio and the level of claim losses we incur” included in our 2022 Annual Report.

There has been an increased market focus on commercial real estate, including office properties, as a result of companies shifting to hybrid work arrangements and the resulting impact on the demand for office space.

We have direct commercial real estate exposure through mortgage loans and certain structured securities. Structured securities include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”). In addition, we have direct and indirect exposure through certain financial industry corporate fixed maturity securities. See “Risk Factors — Risks Related to Our Investment Portfolio — Our investment portfolio is subject to significant financial risks both in the U.S. and global financial markets, including credit risk, interest rate risk, inflation risk, market valuation risk, liquidity risk, real estate risk, derivatives risk, and other factors outside our control, the occurrence of any of which could have a material adverse effect on our financial condition and results of operations” included in our 2022 Annual Report, as well as “— Investments — Mortgage Loans” and Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements for information on mortgage loans, including credit quality by portfolio segment and commercial mortgage loans by property type. Additionally, see “— Investments — Fixed Maturity Securities Available-for-sale — Structured Securities” for information on Structured Securities, including security type, risk profile and ratings profile as well as “— Investments — Fixed Maturity Securities Available-for-sale — U.S. and Foreign Corporate Fixed Maturity Securities” for our exposure to the finance industry.

We monitor direct and indirect investment exposure across sectors and asset classes and adjust our level of investment exposure, as appropriate. At this time, we do not expect that our general account investments in these sectors and asset classes will have a material adverse effect on our results of operations or financial condition.

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Investment Portfolio Results

The following summary yield table presents the yield and adjusted net investment income for our investment portfolio for the periods indicated. As described below, this table reflects certain differences from the presentation of net investment income presented in the GAAP statements of operations. This summary yield table presentation is consistent with how we measure our investment performance for management purposes, and we believe it enhances understanding of our investment portfolio results.

	Three Months Ended September 30,								Nine Months Ended September 30,
	2023				2022				2023				2022
	Yield %		Amount		Yield %		Amount		Yield %		Amount		Yield %		Amount
	(Dollars in millions)
Investment income (1)	4.34	%	$	1,264	3.35	%	$	939	4.22	%	$	3,656	3.96	%	$	3,243
Investment fees and expenses (2)	(0.14)		(37)		(0.15)		(39)		(0.14)		(113)		(0.14)		(116)
Adjusted net investment income (3)	4.20	%	$	1,227	3.20	%	$	900	4.08	%	$	3,543	3.82	%	$	3,127

_______________

(1)Investment income yields are calculated as investment income as a percentage of average quarterly asset carrying values. Investment income excludes recognized gains and losses and reflects the adjustments discussed in table note (3) below to arrive at adjusted net investment income. Asset carrying values exclude unrealized gains (losses), collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties.

(2)Investment fee and expense yields are calculated as a percentage of average quarterly asset estimated fair values. Asset estimated fair values exclude collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties.

(3)Adjusted net investment income presented in the yield table varies from the most directly comparable GAAP measure due to certain reclassifications, as presented below.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Net investment income	$	1,202	$	877	$	3,457	$	3,089
Less: Investment hedge adjustments	(25)		(23)		(86)		(38)
Adjusted net investment income — in the above yield table	$	1,227	$	900	$	3,543	$	3,127

See “— Results of Operations — Consolidated Results for the Three Months and Nine Months Ended September 30, 2023 and 2022” for an analysis of the period-over-period changes in net investment income.

Fixed Maturity Securities Available-for-sale

Fixed maturity securities held by type (public or private) were as follows at:

	September 30, 2023					December 31, 2022
	Estimated Fair Value			% of Total		Estimated Fair Value			% of Total
	(Dollars in millions)
Publicly-traded	$	62,579		83.0	%	$	62,199		82.3	%
Privately-placed	12,854			17.0		13,378			17.7
Total fixed maturity securities	$	75,433		100.0	%	$	75,577		100.0	%
Percentage of cash and invested assets	67.1		%			67.1		%

See Note 8 of the Notes to the Interim Condensed Consolidated Financial Statements for further information on our valuation controls and procedures including our formal process to challenge any prices received from independent pricing services that are not considered representative of estimated fair value.

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See Notes 1 and 6 of the Notes to the Interim Condensed Consolidated Financial Statements for further information about fixed maturity securities by sector, contractual maturities, continuous gross unrealized losses and the allowance for credit losses.

Fixed Maturity Securities Credit Quality — Ratings

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments — Fixed Maturity Securities Available-for-sale — Fixed Maturity Securities Credit Quality — Ratings” included in our 2022 Annual Report for a discussion of the credit quality ratings assigned by Nationally Recognized Statistical Rating Organizations (“NRSRO”), credit quality designations assigned by and methodologies used by the Securities Valuation Office of the National Association of Insurance Commissioners (“NAIC”) for fixed maturity securities and the methodologies adopted by the NAIC for certain Structured Securities.

The following table presents total fixed maturity securities by NRSRO rating and the applicable NAIC designation from the NAIC published comparison of NRSRO ratings to NAIC designations, except for certain Structured Securities, which are presented using the NAIC methodologies, as well as the percentage, based on estimated fair value that each NAIC designation is comprised of at:

		September 30, 2023										December 31, 2022
NAIC Designation	NRSRO Rating	Amortized Cost		Allowance for Credit Losses		Unrealized Gain (Loss)		Estimated Fair Value		% of Total		Amortized Cost		Allowance for Credit Losses		Unrealized Gain (Loss)		Estimated Fair Value		% of Total
		(Dollars in millions)
1	Aaa/Aa/A	$	56,471	$	6	$	(6,635)	$	49,830	66.0	%	$	53,935	$	2	$	(4,870)	$	49,063	64.9	%
2	Baa	27,103		—		(3,973)		23,130		30.7		27,269		—		(3,546)		23,723		31.4
Subtotal investment grade		83,574		6		(10,608)		72,960		96.7		81,204		2		(8,416)		72,786		96.3
3	Ba	1,996		—		(206)		1,790		2.4		2,343		—		(232)		2,111		2.8
4	B	662		4		(78)		580		0.8		677		1		(88)		588		0.8
5	Caa and lower	113		8		(14)		91		0.1		120		4		(24)		92		0.1
6	In or near default	28		4		(12)		12		—		—		—		—		—		—
Subtotal below investment grade		2,799		16		(310)		2,473		3.3		3,140		5		(344)		2,791		3.7
Total fixed maturity securities		$	86,373	$	22	$	(10,918)	$	75,433	100.0	%	$	84,344	$	7	$	(8,760)	$	75,577	100.0	%

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The following tables present total fixed maturity securities, based on estimated fair value, by sector classification and by NRSRO rating and the applicable NAIC designations from the NAIC published comparison of NRSRO ratings to NAIC designations, except for certain Structured Securities, which are presented using the NAIC methodologies as described above:

	Fixed Maturity Securities — by Sector & Credit Quality Rating
NAIC Designation	1		2		3		4		5		6		Total Estimated Fair Value
NRSRO Rating	Aaa/Aa/A		Baa		Ba		B		Caa and Lower		In or Near Default
	(In millions)
September 30, 2023
U.S. corporate	$	15,287	$	15,691	$	1,353	$	507	$	60	$	12	$	32,910
Foreign corporate	4,340		5,909		370		59		—		—		10,678
U.S. government and agency	7,693		109		—		—		—		—		7,802
RMBS	7,019		22		1		—		9		—		7,051
CMBS	5,929		354		21		2		2		—		6,308
ABS	5,456		619		17		12		10		—		6,114
State and political subdivision	3,521		72		1		—		10		—		3,604
Foreign government	585		354		27		—		—		—		966
Total fixed maturity securities	$	49,830	$	23,130	$	1,790	$	580	$	91	$	12	$	75,433
December 31, 2022
U.S. corporate	$	14,697	$	15,683	$	1,671	$	499	$	57	$	—	$	32,607
Foreign corporate	3,758		6,377		373		68		—		—		10,576
U.S. government and agency	7,887		129		—		—		—		—		8,016
RMBS	7,490		14		12		2		10		—		7,528
CMBS	6,240		351		9		7		4		—		6,611
ABS	4,648		672		17		12		10		—		5,359
State and political subdivision	3,682		105		1		—		11		—		3,799
Foreign government	661		392		28		—		—		—		1,081
Total fixed maturity securities	$	49,063	$	23,723	$	2,111	$	588	$	92	$	—	$	75,577

U.S. and Foreign Corporate Fixed Maturity Securities

We maintain a diversified portfolio of corporate fixed maturity securities across industries and issuers. Our portfolio does not have any exposure to any single issuer in excess of 1% of total investments and the top ten holdings in aggregate comprise 1% of total investments at both September 30, 2023 and December 31, 2022. Our U.S. and foreign corporate fixed maturity securities holdings by industry were as follows at:

	September 30, 2023				December 31, 2022
	Estimated Fair Value		% of Total		Estimated Fair Value		% of Total
	(Dollars in millions)
Industrial	$	13,485	30.9	%	$	13,290	30.7	%
Finance	12,033		27.7		11,988		27.8
Consumer	9,735		22.3		9,459		21.9
Utility	5,773		13.2		5,767		13.4
Communications	2,562		5.9		2,679		6.2
Total	$	43,588	100.0	%	$	43,183	100.0	%

Structured Securities

We held $19.5 billion of Structured Securities, at estimated fair value, at both September 30, 2023 and December 31, 2022, as presented in the RMBS, CMBS and ABS sections below.

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RMBS

Our RMBS holdings are diversified by security type, risk profile and ratings profile, which were as follows at:

	September 30, 2023						December 31, 2022
	Estimated Fair Value		% of Total		Net Unrealized Gains (Losses)		Estimated Fair Value		% of Total		Net Unrealized Gains (Losses)
	(Dollars in millions)
Security type:
Pass-through securities	$	3,721	52.8	%	$	(752)	$	3,846	51.1	%	$	(590)
Collateralized mortgage obligations	3,330		47.2		(426)		3,682		48.9		(311)
Total RMBS	$	7,051	100.0	%	$	(1,178)	$	7,528	100.0	%	$	(901)
Risk profile:
Agency	$	5,782	82.0	%	$	(1,110)	$	6,137	81.5	%	$	(842)
Prime	137		2.0		(20)		149		2.0		(20)
Alt-A	752		10.6		(39)		788		10.5		(37)
Sub-prime	380		5.4		(9)		454		6.0		(2)
Total RMBS	$	7,051	100.0	%	$	(1,178)	$	7,528	100.0	%	$	(901)
Ratings profile:
Rated Aaa (1)	$	547	7.8	%			$	6,643	88.2	%
Designated NAIC 1	$	7,019	99.5	%			$	7,490	99.5	%

_______________

(1)In the current period, Fitch Ratings downgraded the U.S. credit rating from Aaa to Aa1, which resulted in a decrease in Aaa assets in our RMBS holdings.

Historically, our exposure to sub-prime RMBS holdings has been managed by focusing primarily on senior tranche securities, stress-testing the portfolio with severe loss assumptions and closely monitoring the performance of the portfolio. Our sub-prime RMBS portfolio consists predominantly of securities that were purchased after 2012 at significant discounts to par value and discounts to the expected principal recovery value of these securities. The vast majority of these securities are investment grade under the NAIC designations (e.g., NAIC 1 and NAIC 2).

CMBS

Our CMBS holdings are diversified by vintage year, which were as follows at:

	September 30, 2023				December 31, 2022
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(In millions)
2003 - 2011	$	89	$	76	$	90	$	82
2012	9		7		41		38
2013	76		69		204		197
2014	294		262		322		294
2015	950		859		966		879
2016	461		416		463		421
2017	718		638		732		667
2018	1,633		1,464		1,668		1,538
2019	998		836		1,021		879
2020	541		425		534		426
2021	846		783		821		748
2022	470		448		462		442
2023	27		25		—		—
Total	$	7,112	$	6,308	$	7,324	$	6,611

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The estimated fair value of CMBS rated Aaa using rating agency ratings was $4.3 billion, or 68.0% of total CMBS, and designated NAIC 1 was $5.9 billion, or 94.0% of total CMBS, at September 30, 2023. The estimated fair value of CMBS Aaa rating agency ratings was $4.6 billion, or 70.0% of total CMBS, and designated NAIC 1 was $6.2 billion, or 94.4% of total CMBS, at December 31, 2022.

ABS

Our ABS holdings are diversified by both collateral type and issuer. Our ABS holdings by collateral type and ratings profile were as follows at:

	September 30, 2023						December 31, 2022
	Estimated Fair Value		% of Total		Net Unrealized Gains (Losses)		Estimated Fair Value		% of Total		Net Unrealized Gains (Losses)
	(Dollars in millions)
Collateral type:
Collateralized obligations	$	3,653	59.7	%	$	(34)	$	3,239	60.5	%	$	(124)
Consumer loans	349		5.7		(27)		420		7.8		(36)
Student loans	386		6.3		(27)		393		7.3		(34)
Automobile loans	444		7.3		(8)		216		4.0		(9)
Credit card loans	257		4.2		(11)		158		3.0		(10)
Other loans	1,025		16.8		(73)		933		17.4		(80)
Total	$	6,114	100.0	%	$	(180)	$	5,359	100.0	%	$	(293)
Ratings profile:
Rated Aaa	$	3,272	53.5	%			$	2,300	42.9	%
Designated NAIC 1	$	5,456	89.2	%			$	4,648	86.7	%

Allowance for Credit Losses for Fixed Maturity Securities

See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements for information about the evaluation of fixed maturity securities for an allowance for credit losses or write-offs due to uncollectibility.

Securities Lending

We participate in a securities lending program whereby securities are loaned to third parties, primarily brokerage firms and commercial banks. We obtain collateral, usually cash, in an amount generally equal to 102% of the estimated fair value of the securities loaned, which is obtained at the inception of a loan and maintained at a level greater than or equal to 100% for the duration of the loan. The estimated fair value of the securities loaned is monitored on a daily basis with additional collateral obtained as necessary throughout the duration of the loan. Securities loaned under such transactions may be sold or re-pledged by the transferee. We are liable to return to our counterparties the cash collateral under our control. Security collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected in the financial statements. These transactions are treated as financing arrangements and the associated cash collateral liability is recorded at the amount of the cash received.

See “— Liquidity and Capital Resources — The Company — Primary Uses of Liquidity and Capital — Securities Lending” and Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements for information regarding our securities lending program.

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Mortgage Loans

Our mortgage loans are principally collateralized by commercial, agricultural and residential properties. Information regarding mortgage loans by portfolio segment is summarized as follows at:

	September 30, 2023								December 31, 2022
	Amortized Cost		% of Total		Allowance for Credit Losses		% of Amortized Cost		Amortized Cost		% of Total		Allowance for Credit Losses		% of Amortized Cost
	(Dollars in millions)
Commercial	$	13,307	58.3	%	$	67	0.5	%	$	13,574	58.9	%	$	49	0.4	%
Agricultural	4,461		19.6		15		0.3	%	4,365		18.9		15		0.3	%
Residential	5,051		22.1		55		1.1	%	5,116		22.2		55		1.1	%
Total	$	22,819	100.0	%	$	137	0.6	%	$	23,055	100.0	%	$	119	0.5	%

Our mortgage loan portfolio is diversified by both geographic region and property type to reduce the risk of concentration. The percentage of our commercial and agricultural mortgage loan portfolios collateralized by properties located in the U.S. were 98% at both September 30, 2023 and December 31, 2022. The remainder was collateralized by properties located outside of the U.S. At September 30, 2023, the carrying value as a percentage of total commercial and agricultural mortgage loans for the top three states in the U.S. was 18% for California, 10% for Texas and 8% for New York. Additionally, we manage risk when originating commercial and agricultural mortgage loans by generally lending up to 75% of the estimated fair value of the underlying real estate collateral.

Our residential mortgage loan portfolio is managed in a similar manner to reduce risk of concentration. All residential mortgage loans were collateralized by properties located in the U.S. at both September 30, 2023 and December 31, 2022. At September 30, 2023, the carrying value as a percentage of total residential mortgage loans for the top three states in the U.S. was 39% for California, 11% for Florida and 7% for New York.

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Commercial Mortgage Loans by Geographic Region and Property Type. Commercial mortgage loans are the largest component of the mortgage loan invested asset class. The diversification across geographic regions and property types of commercial mortgage loans was as follows at:

	September 30, 2023				December 31, 2022
	Amount		% of Total		Amount		% of Total
	(Dollars in millions)
Geographic region:
South Atlantic	$	2,783	20.9	%	$	3,026	22.3	%
Pacific	2,649		19.9		2,765		20.4
Middle Atlantic	2,155		16.2		2,344		17.3
West South Central	1,516		11.4		1,642		12.1
Mountain	1,143		8.6		1,140		8.4
New England	753		5.7		741		5.4
East North Central	736		5.5		794		5.8
International	405		3.0		390		2.9
West North Central	359		2.7		361		2.7
East South Central	306		2.3		306		2.2
Multi-region and Other (1)	502		3.8		65		0.5
Total recorded investment	13,307		100.0	%	13,574		100.0	%
Less: allowance for credit losses	67				49
Carrying value, net of allowance for credit losses	$	13,240			$	13,525
Property type:
Apartment	$	5,395	40.5	%	$	5,366	39.5	%
Office	3,214		24.2		3,375		24.9
Industrial	2,073		15.6		2,051		15.1
Retail	1,793		13.5		1,934		14.3
Hotel	832		6.2		848		6.2
Total recorded investment	13,307		100.0	%	13,574		100.0	%
Less: allowance for credit losses	67				49
Carrying value, net of allowance for credit losses	$	13,240			$	13,525

__________________

(1) In the current quarter, certain commercial mortgage loans have been reclassified into the Multi-region and Other geographic region.

Mortgage Loan Credit Quality — Monitoring Process. Our mortgage loan investments are monitored on an ongoing basis, including a review of loans that are current, past due, restructured and under foreclosure. Quarterly, we conduct a formal review of the portfolio with our investment managers. See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements for information on mortgage loans by credit quality indicator, past due status, nonaccrual status and modified mortgage loans.

Our commercial mortgage loans are reviewed on an ongoing basis. These reviews may include an analysis of the property financial statements and rent roll, lease rollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, loan-to-value ratios, debt-service coverage ratios and tenant creditworthiness. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, delinquent or in foreclosure, as well as loans with higher loan-to-value ratios and lower debt-service coverage ratios. The monitoring process for agricultural mortgage loans is generally similar, with a focus on higher risk loans, such as loans with higher loan-to-value ratios, including reviews on a geographic and sector basis. Our residential mortgage loans are reviewed on an ongoing basis. See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements for information on our evaluation of residential mortgage loans and related measurement of allowance for credit losses.

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Loan-to-value ratios and debt-service coverage ratios are common measures in the assessment of the quality of commercial mortgage loans. Loan-to-value ratios are a common measure in the assessment of the quality of agricultural mortgage loans. Loan-to-value ratios compare the amount of the loan to the estimated fair value of the underlying collateral. A loan-to-value ratio greater than 100% indicates that the loan amount is greater than the collateral value. A loan-to-value ratio of less than 100% indicates an excess of collateral value over the loan amount. Generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss. The debt-service coverage ratio compares a property’s net operating income to amounts needed to service the principal and interest due under the loan. Generally, the lower the debt-service coverage ratio, the higher the risk of experiencing a credit loss. For our commercial mortgage loans, our average loan-to-value ratio was 61% and 57% at September 30, 2023 and December 31, 2022, respectively and our average debt-service coverage ratio was 2.3x and 2.2x at September 30, 2023 and December 31, 2022, respectively. The debt-service coverage ratio, as well as the values utilized in calculating the ratio, is updated annually on a rolling basis, with a portion of the portfolio updated each quarter. In addition, the loan-to-value ratio is routinely updated for all but the lowest risk loans as part of our ongoing review of our commercial mortgage loan portfolio. For our agricultural mortgage loans, our average loan-to-value ratio was 48% at both September 30, 2023 and December 31, 2022. The values utilized in calculating the agricultural mortgage loan loan-to-value ratio are developed in connection with the ongoing review of the agricultural loan portfolio and are routinely updated.

Mortgage Loan Allowance for Credit Losses. See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements for information about how the allowance for credit losses is established and monitored, as well as activity in and balances of the allowance for credit losses for the nine months ended September 30, 2023 and 2022.

Limited Partnerships and Limited Liability Companies

The carrying values of our limited partnerships and LLCs were as follows at:

	September 30, 2023		December 31, 2022
	(In millions)
Other limited partnerships	$	4,132	$	3,941
Real estate limited partnerships and LLCs (1)	799		834
Total	$	4,931	$	4,775

__________________

(1)The estimated fair value of real estate limited partnerships and LLCs was $933 million and $987 million at September 30, 2023 and December 31, 2022, respectively.

Cash distributions on these investments are generated from investment gains, operating income from the underlying investments of the funds and liquidation of the underlying investments of the funds. We estimate that the underlying investment of the private equity funds will typically be liquidated over the next 10 to 20 years.

Other Invested Assets

The carrying value of our other invested assets by type was as follows at:

	September 30, 2023				December 31, 2022
	Carrying Value		% of Total		Carrying Value		% of Total
	(Dollars in millions)
Freestanding derivatives with positive estimated fair values	$	2,516	78.4	%	$	2,284	80.1	%
Company-owned life insurance	336		10.5		250		8.8
Federal Home Loan Bank stock	247		7.7		201		7.0
Tax credit and renewable energy partnerships	52		1.6		55		1.9
Leveraged leases, net of non-recourse debt	48		1.5		48		1.7
Other	11		0.3		14		0.5
Total	$	3,210	100.0	%	$	2,852	100.0	%

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Derivatives

Derivative Risks

We are exposed to various risks relating to our ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market risks. We use a variety of strategies to manage these risks, including the use of derivatives. See Note 7 of the Notes to the Interim Condensed Consolidated Financial Statements for:

•information about the gross notional amount, estimated fair value, and primary underlying risk exposure of our derivatives by type of hedge designation, excluding embedded derivatives held at September 30, 2023 and December 31, 2022; and

•the effects of derivatives in cash flow, fair value, or non-qualifying hedge relationships on the statements of operations for the nine months ended September 30, 2023 and 2022.

See “Business — Segments and Corporate & Other — Annuities,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management Strategies” included in our 2022 Annual Report for more information about our use of derivatives by major hedging programs. In addition, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Results of Operations — Annual Actuarial Review” and “Risk Factors — Risks Related to our Investment Portfolio — Our investment portfolio is subject to significant financial risks both in the U.S. and global financial markets, including credit risk, interest rate risk, inflation risk, market valuation risk, liquidity risk, real estate risk, derivatives risk, and other factors outside our control, the occurrence of any of which could have a material adverse effect on our financial condition and results of operations” included in our 2022 Annual Report.

Fair Value Hierarchy

See Note 8 of the Notes to the Interim Condensed Consolidated Financial Statements for derivatives measured at estimated fair value on a recurring basis and their corresponding fair value hierarchy, as well as a rollforward of the fair value measurements for derivatives measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs as discussed below.

The valuation of Level 3 derivatives involves the use of significant unobservable inputs and generally requires a higher degree of management judgment or estimation than the valuations of Level 1 and Level 2 derivatives. Although Level 3 inputs are unobservable, management believes they are consistent with what other market participants would use when pricing such instruments and are considered appropriate given the circumstances. The use of different inputs or methodologies could have a material effect on the estimated fair value of Level 3 derivatives and could materially affect net income.

Derivatives categorized as Level 3 at September 30, 2023 include: credit default swaps priced using unobservable credit spreads, or that are priced through independent broker quotations; equity hybrid options with unobservable volatility inputs; and foreign currency swaps with certain unobservable inputs.

Credit Risk

See Note 7 of the Notes to the Interim Condensed Consolidated Financial Statements for information about how we manage credit risk related to derivatives and for the estimated fair value of our net derivative assets and net derivative liabilities after the application of master netting agreements and collateral. See “Risk Factors — Risks Related to our Investment Portfolio — Our investment portfolio is subject to significant financial risks both in the U.S. and global financial markets, including credit risk, interest rate risk, inflation risk, market valuation risk, liquidity risk, real estate risk, derivatives risk, and other factors outside our control, the occurrence of any of which could have a material adverse effect on our financial condition and results of operations” included in our 2022 Annual Report.

Our policy is not to offset the fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. This policy applies to the recognition of derivatives on the balance sheet and does not affect our legal right of offset.

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Credit Derivatives

The gross notional amount and estimated fair value of credit default swaps were as follows at:

	September 30, 2023				December 31, 2022
	Gross Notional Amount		Estimated Fair Value		Gross Notional Amount		Estimated Fair Value
	(In millions)
Written	$	1,530	$	20	$	1,757	$	16
Purchased	—		—		—		—
Total	$	1,530	$	20	$	1,757	$	16

The maximum amount at risk related to our written credit default swaps is equal to the corresponding gross notional amount. In a replication transaction, we pair an asset on our balance sheet with a written credit default swap to synthetically replicate a corporate bond, a core asset holding of life insurance companies. Replications are entered into in accordance with the guidelines approved by state insurance regulators and the NAIC and are an important tool in managing the overall corporate credit risk within the Company. In order to match our long-dated insurance liabilities, we seek to buy long-dated corporate bonds. In some instances, these may not be readily available in the market, or they may be issued by corporations to which we already have significant corporate credit exposure. For example, by purchasing Treasury bonds (or other high-quality assets) and associating them with written credit default swaps on the desired corporate credit name, we can replicate the desired bond exposures and meet our ALM needs. This can expose the Company to changes in credit spreads as the written credit default swap tenor is shorter than the maturity of Treasury bonds.

Embedded Derivatives

See Note 8 of the Notes to the Interim Condensed Consolidated Financial Statements for (i) information about embedded derivatives measured at estimated fair value on a recurring basis and their corresponding fair value hierarchy and (ii) a rollforward of the fair value measurements for net embedded derivatives measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs.

See “— Summary of Critical Accounting Estimates — Derivatives” for additional information on the estimates and assumptions that affect embedded derivatives.

Policyholder Liabilities

We establish, and carry as liabilities, actuarially determined amounts that are calculated to meet policy obligations or to provide for future annuity and life insurance benefit payments. Amounts for actuarial liabilities are computed and reported in the financial statements in conformity with GAAP. See “— Summary of Critical Accounting Estimates” for more details on policyholder liabilities.

Future Policy Benefits

We establish liabilities for future amounts payable under insurance policies. See Notes 2 and 4 of the Notes to the Interim Condensed Consolidated Financial Statements.

Policyholder Account Balances

Policyholder account balance liabilities are established for products with an explicit account value and generally equal to the balance accrued to the contract holder, which includes accrued interest credited, but excludes the impact of any applicable charge that may be incurred upon surrender. See Note 4 of the Notes to the Interim Condensed Consolidated Financial Statements.

Market Risk Benefits

We issue certain variable annuity products with guaranteed minimum benefits (“GMxB”) that provide the policyholder a minimum return based on their initial deposit (i.e., the Benefit Base) less withdrawals. In some cases, the Benefit Base may be increased by additional deposits, bonus amounts, accruals or optional market value step-ups. Variable annuity guaranteed benefits are classified as MRBs and measured at fair value. Certain index-linked annuity products may also have GMxBs classified as MRBs. See Note 4 of the Notes to the Interim Condensed Consolidated Financial Statements and “Quantitative and Qualitative Disclosures About Market Risk.”

Select information that management considers relevant to understanding our variable annuity risk management strategy has been included below.

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Net Amount at Risk

The net amount at risk (“NAR”) for the guaranteed minimum income benefits (“GMIB”) is the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents our potential economic exposure to such guarantees in the event all contract holders were to annuitize on the balance sheet date, even though the guaranteed amount under the contract may not be annuitized until after the waiting period of the contract.

The NAR for the guaranteed minimum withdrawal benefits (“GMWB”) is the amount of guaranteed benefits in excess of the account values (if any) as of the balance sheet date and assumes utilization of benefits by all contract holders as of the balance sheet date. Only a small portion of the Benefit Base is available for withdrawal on an annual basis.

The NAR for the guaranteed minimum accumulation benefits (“GMAB”) is the amount of guaranteed benefits in excess of the account values (if any) as of the balance sheet date and assumes utilization of benefits by all contract holders as of the balance sheet. The NAR for the GMAB is not available until the GMAB maturity date.

The NAR for the guaranteed minimum death benefits (“GMDB”) is the amount of death benefit in excess of the account value (if any) as of the balance sheet date. It represents the amount of the claim we would incur if death claims were made on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death.

Our variable annuity account value and NAR by type of GMxB were as follows at:

	September 30, 2023								December 31, 2022
	Account Value		Death Benefit NAR (1)		Living Benefit NAR (1)		% of Account Value In-the-Money (2)		Account Value		Death Benefit NAR (1)		Living Benefit NAR (1)		% of Account Value In-the-Money (2)
	(Dollars in millions)
GMIB	$	30,275	$	5,267	$	4,312	39.7	%	$	31,541	$	5,517	$	4,484	42.9	%
GMIB Max with EDB (3)	7,213		6,558		620		44.4	%	7,868		6,013		415		34.8	%
GMIB Max without EDB (3)	4,109		203		160		27.9	%	4,464		196		92		18.7	%
GMWB	18,728		1,181		473		19.5	%	19,270		1,584		662		26.5	%
GMAB	421		13		13		25.9	%	492		18		18		25.4	%
GMDB only (other than EDB) (3)	15,889		1,389		—		N/A		15,766		1,737		—		N/A
EDB only (3)	2,920		1,516		—		N/A		3,009		1,439		—		N/A
Total	$	79,555	$	16,127	$	5,578			$	82,410	$	16,504	$	5,671

__________________

(1)The “Death Benefit NAR” and “Living Benefit NAR” are not additive at the contract level.

(2)In-the-money is defined as any contract with a living benefit NAR in excess of zero.

(3)Enhanced Death Benefit (“EDB”).

Reserves

Under GAAP, variable annuity guarantees are classified as MRBs, measured at estimated fair value, and are reported in market risk benefit assets and liabilities on the consolidated balance sheets, with changes reported in change in market risk benefits on the consolidated statements of operations, except for changes related to nonperformance risk, which are reported in other comprehensive income on the consolidated statements of comprehensive income (loss). Additionally, the index protection and accumulation features of Shield Annuities are accounted for as embedded derivatives, measured at estimated fair value, and are reported in policyholder account balances on the consolidated balance sheets, with changes reported in net derivative gains (losses) on the consolidated statements of operations. These liabilities were valued at $5.6 billion at September 30, 2023.

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Our variable annuity MRBs by type of GMxB were as follows at:

	September 30, 2023		December 31, 2022
	(In millions)
GMIB	$	8,128	$	9,457
GMWB	28		209
GMDB	671		720
Total	$	8,827	$	10,386

The estimated fair value of these guarantees can change significantly due to changes in equity market performance, equity market volatility or interest rates. Fair values are also affected by our assumptions around mortality, separate account returns and policyholder behavior, including lapse, annuitization and withdrawal rates. See “Risk Factors — Risks Related to Our Business — Guarantees within certain of our annuity products may decrease our earnings, decrease our capitalization, increase the volatility of our results, result in higher risk management costs and expose us to increased market risk” included in our 2022 Annual Report.

Derivatives Hedging Variable Annuity Guarantees

The gross notional amount and estimated fair value of the derivatives held in our macro interest rate hedging program were as follows at:

	September 30, 2023						December 31, 2022
Instrument Type	Gross Notional Amount (1)		Estimated Fair Value				Gross Notional Amount (1)		Estimated Fair Value
			Assets		Liabilities				Assets		Liabilities
	(In millions)
Interest rate swaps	$	23,230	$	130	$	268	$	2,330	$	38	$	46
Interest rate options	31,080		18		303		28,688		22		232
Interest rate forwards	15,464		178		2,727		16,848		35		2,387
Hybrid options (2)	630		7		—		—		—		—
Total	$	70,404	$	333	$	3,298	$	47,866	$	95	$	2,665

__________________

(1)The gross notional amounts presented do not necessarily represent the relative economic coverage provided by derivative instruments because certain positions were closed out by entering into offsetting positions that are not netted in the above table.

(2)Hybrid options have equity exposure in addition to interest rate exposure.

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The gross notional amount and estimated fair value of the derivatives held in our variable annuity hedging program, as well as the interest rate hedges allocated from our macro interest rate hedging program, were as follows at:

	September 30, 2023						December 31, 2022
Instrument Type	Gross Notional Amount (1)		Estimated Fair Value				Gross Notional Amount (1)		Estimated Fair Value
			Assets		Liabilities				Assets		Liabilities
	(In millions)
Equity index options	$	12,313	$	304	$	432	$	13,862	$	525	$	350
Equity total return swaps	56,332		931		1,061		32,909		520		747
Interest rate swaps	30,096		131		280		2,330		38		46
Interest rate options	27,580		18		220		27,088		21		126
Interest rate forwards	8,443		—		1,206		10,565		35		1,255
Hybrid options	630		7		—		—		—		—
Total	$	135,394	$	1,391	$	3,199	$	86,754	$	1,139	$	2,524

__________________

(1)The gross notional amounts presented do not necessarily represent the relative economic coverage provided by option instruments because certain positions were closed out by entering into offsetting positions that are not netted in the above table.

Period-to-period changes in the estimated fair value of these hedges affect our net income, as well as stockholders’ equity and these effects can be material in any given period. See “Risk Factors — Risks Related to Our Business — Our variable annuity exposure risk management strategy may not be effective, may result in significant volatility in our profitability measures and may negatively affect our statutory capital,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management Strategies” included in our 2022 Annual Report.

Liquidity and Capital Resources

Our business and results of operations are materially affected by conditions in the global capital markets and the economy generally. Stressed conditions, volatility or disruptions in global capital markets, particular markets or financial asset classes can impact us adversely, in part because we have a large investment portfolio and our insurance liabilities and derivatives are sensitive to changing market factors. Changing conditions in the global capital markets and the economy may affect our financing costs and market interest rates for our debt or equity securities. For further information regarding market factors that could affect our ability to meet liquidity and capital needs, see “— Industry Trends and Uncertainties — Financial and Economic Environment,” as well as “Risk Factors — Economic Environment and Capital Markets-Related Risks” and “Risk Factors — Risks Related to Our Investment Portfolio” included in our 2022 Annual Report.

Liquidity and Capital Management

Based upon our capitalization, expectations regarding maintaining our business mix, ratings, and funding sources available to us, we believe we have sufficient liquidity to meet business requirements in current market conditions and certain stress scenarios. Our Board of Directors and senior management are directly involved in the governance of the capital management process, including proposed changes to the annual capital plan and capital targets. We continuously monitor and adjust our liquidity and capital plans in light of market conditions, as well as changing needs and opportunities.

We maintain a substantial short-term liquidity position, which was $3.2 billion and $3.6 billion at September 30, 2023 and December 31, 2022, respectively. Short-term liquidity is comprised of cash and cash equivalents and short-term investments, excluding assets that are pledged or otherwise committed. Assets pledged or otherwise committed include amounts received in connection with securities lending, derivatives and assets held on deposit or in trust.

An integral part of our liquidity management includes managing our level of liquid assets, which was $42.0 billion and $40.8 billion at September 30, 2023 and December 31, 2022, respectively. Liquid assets are comprised of cash and cash equivalents, short-term investments and publicly-traded securities, excluding assets that are pledged or otherwise committed. Assets pledged or otherwise committed include amounts received in connection with securities lending, funding agreements, derivatives and assets held on deposit or in trust.

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The Company

Liquidity

Liquidity refers to our ability to generate adequate cash flows from our normal operations to meet the cash requirements of our operating, investing and financing activities. We determine our liquidity needs based on a rolling 12-month forecast by portfolio of invested assets, which we monitor daily. We adjust the general account asset and derivatives mix and general account asset maturities based on this rolling 12-month forecast. To support this forecast, we conduct cash flow and stress testing, which reflect the impact of various scenarios, including (i) the potential increase in our requirement to pledge additional collateral or return collateral to our counterparties, (ii) a reduction in new business sales, and (iii) the risk of early contract holder and policyholder withdrawals, as well as lapses and surrenders of existing policies and contracts. We include provisions limiting withdrawal rights in many of our products, which deter the customer from making withdrawals prior to the maturity date of the product. If significant cash is required beyond our anticipated liquidity needs, we have various alternatives available depending on market conditions and the amount and timing of the liquidity need. These available alternative sources of liquidity include cash flows from operations, sales of liquid assets and funding sources, including secured funding agreements, unsecured credit facilities and secured committed facilities.

Under certain adverse market and economic conditions, our access to liquidity may deteriorate, or the cost to access liquidity may increase. See “Risk Factors — Economic Environment and Capital Markets-Related Risks — Adverse capital and credit market conditions may significantly affect our ability to meet liquidity needs and our access to capital” in our 2022 Annual Report.

Capital

We manage our capital position to maintain our financial strength and credit ratings. Our capital position is supported by our ability to generate cash flows within our insurance companies, our ability to effectively manage the risks of our businesses and our expected ability to borrow funds and raise additional capital to meet operating and growth needs under a variety of market and economic conditions.

We monitor our debt-to-capital ratio using an average of our key leverage ratios as calculated by A.M. Best, Fitch, Moody’s and S&P, and we aim to maintain a ratio commensurate with our financial strength and credit ratings. As such, we may opportunistically look to pursue additional financing over time, which may include borrowings under credit facilities, the issuance of debt, equity or hybrid securities, the incurrence of term loans, or the refinancing or extinguishment of existing indebtedness. There can be no assurance that we will be able to complete any such financing transactions on terms and conditions favorable to us or at all.

In support of our target combined risk-based capital (“RBC”) ratio of 400% to 450% in normal market conditions, we expect to continue to maintain a capital and exposure risk management program that targets total assets supporting our variable annuity contracts at or above the average of the worst two percent of a set of capital markets scenarios over the life of the contracts level in normal market conditions. With our risk management focus on the core drivers of our combined RBC ratio, we believe we can better manage our RBC in stressed market scenarios.

We have a share repurchase program under which repurchases may be made through open market purchases, including pursuant to 10b5-1 plans or pursuant to accelerated stock repurchase plans, or through privately negotiated transactions, from time to time at management’s discretion in accordance with applicable legal requirements. Common stock repurchases are dependent upon several factors, including our capital position, liquidity, financial strength and credit ratings, general market conditions, the market price of our common stock compared to management’s assessment of the stock’s underlying value and applicable regulatory approvals, as well as other legal and accounting factors.

We currently have no plans to declare and pay dividends on our common stock. Any future declaration and payment of dividends or other distributions or returns of capital will be at the discretion of our Board of Directors and will depend on and be subject to our financial condition, results of operations, cash needs, regulatory and other constraints, capital requirements (including capital requirements of our insurance subsidiaries), contractual restrictions and any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will pay any dividends or make other distributions or returns of capital on our common stock, or as to the amount of any such dividends, distributions or returns of capital.

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Sources and Uses of Liquidity and Capital

Our primary sources and uses of liquidity and capital were as follows at:

	Nine Months Ended September 30,
	2023		2022
	(In millions)
Sources:
Changes in policyholder account balances, net	$	3,519	$	9,281
Changes in payables for collateral under securities loaned and other transactions, net	—		263
Financing element on certain derivative instruments and other derivative related transactions, net	43		—
Total sources	3,562		9,544
Uses:
Operating activities, net	289		1,002
Investing activities, net	2,644		7,596
Changes in payables for collateral under securities loaned and other transactions, net	619		—
Long-term debt repaid	1		2
Dividends on preferred stock	77		78
Treasury stock acquired in connection with share repurchases	190		395
Financing element on certain derivative instruments and other derivative related transactions, net	—		137
Other, net	18		15
Total uses	3,838		9,225
Net increase (decrease) in cash and cash equivalents	$	(276)	$	319

Cash Flows from Operating Activities

The principal cash inflows from our insurance activities come from insurance premiums, annuity considerations and net investment income. The principal cash outflows are the result of various annuity and life insurance products, operating expenses and income tax, as well as interest expense. The primary liquidity concern with respect to these cash flows is the risk of early contract holder and policyholder withdrawal.

Cash Flows from Investing Activities

The principal cash inflows from our investment activities come from repayments of principal, proceeds from maturities and sales of investments, as well as settlements of freestanding derivatives. The principal cash outflows relate to purchases of investments and settlements of freestanding derivatives. We typically can have a net cash outflow from investing activities because cash inflows from insurance operations are reinvested in accordance with our ALM discipline to fund insurance liabilities. We closely monitor and manage these risks through our comprehensive investment risk management process. The primary liquidity concerns with respect to these cash flows are the risk of default by debtors and market disruption.

Cash Flows from Financing Activities

The principal cash inflows from our financing activities come from issuances of debt and equity securities, deposits of funds associated with policyholder account balances and lending of securities. The principal cash outflows come from repayments of debt, common stock repurchases, preferred stock dividends, withdrawals associated with policyholder account balances and the return of securities on loan. The primary liquidity concerns with respect to these cash flows are market disruption and the risk of early policyholder withdrawal.

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Primary Sources of Liquidity and Capital

In addition to the summary description of liquidity and capital sources discussed in “— Sources and Uses of Liquidity and Capital,” the following additional information is provided regarding our primary sources of liquidity and capital:

Funding Sources

Liquidity is provided by a variety of funding sources, including secured and unsecured funding agreements, unsecured credit facilities and secured committed facilities. Capital is provided by a variety of funding sources, including issuances of debt and equity securities, as well as borrowings under our credit facilities. We maintain a shelf registration statement with the SEC that permits the issuance of public debt, equity and hybrid securities. As a “Well-Known Seasoned Issuer” under SEC rules, our shelf registration statement provides for automatic effectiveness upon filing and has no stated issuance capacity. The diversity of our funding sources enhances our funding flexibility, limits dependence on any one market or source of funds and generally lowers the cost of funds. Our primary funding sources include:

Preferred Stock

See Note 10 of the Notes to the Interim Condensed Consolidated Financial Statements and Note 10 of the Notes to the Consolidated Financial Statements included in our 2022 Annual Report for information on preferred stock issuances.

Funding Agreements

Brighthouse Life Insurance Company issues funding agreements and uses the proceeds from such issuances for spread lending purposes in connection with our institutional spread margin business or to provide additional liquidity. The institutional spread margin business is comprised of funding agreements issued in connection with the programs described in more detail below. See Note 3 of the Notes to the Consolidated Financial Statements included in our 2022 Annual Report for additional information on funding agreements.

Funding Agreement-Backed Commercial Paper Program

In July 2021, Brighthouse Life Insurance Company established a funding agreement-backed commercial paper program (the “FABCP Program”) for spread lending purposes, pursuant to which a special purpose limited liability company (the “SPLLC”) may issue commercial paper and deposit the proceeds with Brighthouse Life Insurance Company under a funding agreement issued by Brighthouse Life Insurance Company to the SPLLC. The maximum aggregate principal amount permitted to be outstanding at any one time under the FABCP Program was increased from $3.0 billion to $5.0 billion in June 2023. Activity related to this funding agreement is reported in Corporate & Other.

Funding Agreement-Backed Notes Program

In April 2021, Brighthouse Life Insurance Company established a funding agreement-backed notes program (the “FABN Program”), pursuant to which Brighthouse Life Insurance Company may issue funding agreements to a special purpose statutory trust for spread lending purposes. The maximum aggregate principal amount permitted to be outstanding at any one time under the FABN Program is $7.0 billion. Activity related to these funding agreements is reported in Corporate & Other.

Federal Home Loan Bank Funding Agreements

Brighthouse Life Insurance Company is a member of the Federal Home Loan Bank (“FHLB”) of Atlanta, where it maintains a secured funding agreement program, under which funding agreements may be issued either (i) for spread lending purposes or (ii) to provide additional liquidity. Activity related to these funding agreements is reported in Corporate & Other.

Farmer Mac Funding Agreements

Brighthouse Life Insurance Company has a secured funding agreement program with the Federal Agricultural Mortgage Corporation and its affiliate Farmer Mac Mortgage Securities Corporation (“Farmer Mac”) with a term ending on December 1, 2026, pursuant to which the parties may enter into funding agreements in an aggregate amount of up to $750 million either (i) for spread lending purposes or (ii) to provide additional liquidity. Activity related to these funding agreements is reported in Corporate & Other.

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Information regarding funding agreements issued for spread lending purposes is as follows:

	Aggregate Principal Amount Outstanding				Issuances				Repayments
					Nine Months Ended September 30,
	September 30, 2023		December 31, 2022		2023		2022		2023		2022
	(In millions)
FABCP Program	$	2,809	$	2,097	$	5,618	$	8,980	$	4,906	$	9,110
FABN Program	2,600		3,450		—		550		850		—
FHLB Funding Agreements	4,400		3,900		1,925		5,350		1,425		2,500
Farmer Mac Funding Agreements	700		700		—		400		—		25
Total	$	10,509	$	10,147	$	7,543	$	15,280	$	7,181	$	11,635

Debt Issuances

See Note 9 of the Notes to the Consolidated Financial Statements included in our 2022 Annual Report for information on debt issuances.

Credit and Committed Facilities

See Note 9 of the Notes to the Interim Condensed Consolidated Financial Statements and Notes 9 and 10 of the Notes to the Consolidated Financial Statements included in our 2022 Annual Report for information regarding our credit and committed facilities.

We have no reason to believe that our lending counterparties would be unable to fulfill their respective contractual obligations under these facilities. As commitments under our credit and committed facilities may expire unused, these amounts do not necessarily reflect our actual future cash funding requirements.

Our Revolving Credit Facility contains financial covenants, including requirements to maintain a specified minimum adjusted consolidated net worth, to maintain a ratio of total indebtedness to total capitalization not in excess of a specified percentage and that place limitations on the dollar amount of indebtedness that may be incurred by our subsidiaries, which could restrict our operations and use of funds. At September 30, 2023, we were in compliance with these financial covenants.

Primary Uses of Liquidity and Capital

In addition to the summarized description of liquidity and capital uses discussed in “— Sources and Uses of Liquidity and Capital,” the following additional information is provided regarding our primary uses of liquidity and capital:

Common Stock Repurchases

See Note 10 of the Notes to the Interim Condensed Consolidated Financial Statements for information relating to authorizations to repurchase BHF common stock, amounts of common stock repurchased pursuant to such authorizations and the amount remaining under such authorizations at September 30, 2023. Subsequent to September 30, 2023 and through November 3, 2023, BHF repurchased an additional 522,548 shares of its common stock through open market purchases pursuant to a 10b5-1 plan for $25 million.

Preferred Stock Dividends

See Note 10 of the Notes to the Interim Condensed Consolidated Financial Statements for information relating to dividends declared and paid on our preferred stock.

“Dividend Stopper” Provisions in BHF’s Preferred Stock and Junior Subordinated Debentures

Terms applicable to our junior subordinated debentures may restrict our ability to pay interest on those debentures in certain circumstances. Suspension of payments of interest on our junior subordinated debentures, whether required under the relevant indenture or optional, could cause “dividend stopper” provisions applicable under those and other instruments to restrict our ability to pay dividends, if any, on our common stock and repurchase our common stock in various situations, including situations where we may be experiencing financial stress, and may restrict our ability to pay dividends or interest on our preferred stock and junior subordinated debentures as well. Similarly, the terms of our outstanding preferred stock contain restrictions on our ability to repurchase our common stock or pay dividends thereon if we have not fulfilled our dividend obligations under such preferred stock or other preferred securities. In addition, the terms of the agreements governing any preferred stock, debt or other financial instruments that we may issue in the

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future, may limit or prohibit the payment of dividends on our common stock or preferred stock, or the payment of interest on our junior subordinated debentures.

Debt Repayments, Repurchases, Redemptions and Exchanges

See Note 9 of the Notes to the Consolidated Financial Statements included in our 2022 Annual Report for information on debt repayments and repurchases, as well as debt maturities and the terms of our outstanding long-term debt.

We may from time to time seek to retire or purchase our outstanding indebtedness through cash purchases or exchanges for other securities, purchases in the open market, privately negotiated transactions or otherwise. Any such repurchases or exchanges will be dependent upon several factors, including our liquidity requirements, contractual restrictions, general market conditions, as well as applicable regulatory, legal and accounting factors. Whether or not we repurchase any debt and the size and timing of any such repurchases will be determined at our discretion.

Insurance Liabilities

Liabilities arising from our insurance activities primarily relate to benefit payments under various annuity and life insurance products, as well as payments for policy surrenders, withdrawals and loans. See “— Primary Sources of Liquidity and Capital — Funding Sources — Funding Agreements” for additional information regarding our institutional spread margin business.

Pledged Collateral

We enter into derivatives to manage various risks relating to our ongoing business operations. We pledge collateral to, and have collateral pledged to us by, counterparties in connection with our derivatives. At September 30, 2023, we did not pledge any cash collateral to counterparties. At December 31, 2022, we pledged $7 million of cash collateral to counterparties. At September 30, 2023 and December 31, 2022, we were obligated to return cash collateral pledged to us by counterparties of $770 million and $829 million, respectively. The timing of the return of the derivatives collateral is uncertain. See Note 7 of the Notes to the Interim Condensed Consolidated Financial Statements for additional information about pledged collateral. We also pledge collateral from time to time in connection with our funding agreements.

We receive non-cash collateral from counterparties for derivatives, which can be sold or re-pledged subject to certain constraints, and which is not recorded on our consolidated balance sheets. The amount of this non-cash collateral at estimated fair value was $1.6 billion and $1.0 billion at September 30, 2023 and December 31, 2022, respectively.

Securities Lending

We have a securities lending program that aims to enhance the total return on our investment portfolio, whereby securities are loaned to third parties, primarily brokerage firms and commercial banks. We obtain collateral, usually cash, from the borrower, which must be returned to the borrower when the loaned securities are returned to us. Generally, our securities lending contracts expire within twelve months of issuance. We were liable for cash collateral under our control of $3.2 billion and $3.7 billion at September 30, 2023 and December 31, 2022, respectively.

We receive non-cash collateral for securities lending from counterparties, which cannot be sold or re-pledged, and which is not recorded on our consolidated balance sheets. There was no non-cash collateral at both September 30, 2023 and December 31, 2022.

See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements for further discussion of our securities lending program.

Contingencies, Commitments and Guarantees

We establish liabilities for litigation, regulatory and other loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. See Note 13 of the Notes to the Interim Condensed Consolidated Financial Statements for additional information regarding contingencies.

We enter into commitments for the purpose of enhancing the total return on our investment portfolio consisting of commitments to fund partnership investments, bank credit facilities and private corporate bond investments, as well as commitments to lend funds under mortgage loan commitments. We anticipate these commitments could be invested any time over the next five years. See Notes 6 and 13 of the Notes to the Interim Condensed Consolidated Financial Statements for additional information regarding commitments.

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In the normal course of our business, we have provided certain indemnities, guarantees and commitments to third parties such that we may be required to make payments now or in the future. See Note 13 of the Notes to the Interim Condensed Consolidated Financial Statements for additional information regarding guarantees.

The Parent Company

Liquidity and Capital

In evaluating liquidity, it is important to distinguish the cash flow needs of the parent company from the cash flow needs of the combined group of companies. BHF is largely dependent on cash flows from its insurance subsidiaries to meet its obligations. Constraints on BHF’s liquidity may occur as a result of operational demands or as a result of compliance with regulatory requirements.

Short-term Liquidity and Liquid Assets

At September 30, 2023 and December 31, 2022, BHF and certain of its non-insurance subsidiaries had short-term liquidity of $891 million and $1.0 billion, respectively. Short-term liquidity is comprised of cash and cash equivalents and short-term investments, excluding assets that are pledged or otherwise committed. Assets pledged or otherwise committed include assets held in trust.

At September 30, 2023 and December 31, 2022, BHF and certain of its non-insurance subsidiaries had liquid assets of $928 million and $1.0 billion, respectively, of which $883 million and $987 million, respectively, was held by BHF. Liquid assets are comprised of cash and cash equivalents, short-term investments and publicly-traded securities, excluding assets that are pledged or otherwise committed. Assets pledged or otherwise committed include assets held in trust.

Statutory Capital and Dividends

The NAIC and state insurance departments have established regulations that provide minimum capitalization requirements based on RBC formulas for insurance companies. RBC is based on a formula calculated by applying factors to various asset, premium, claim, expense and statutory reserve items. The formula takes into account the risk characteristics of the insurer, including asset risk, insurance risk, interest rate risk, market risk and business risk and is calculated on an annual basis. The formula is used as an early warning regulatory tool to identify possible inadequately capitalized insurers for purposes of initiating regulatory action, and not as a means to rank insurers generally. State insurance laws provide insurance regulators the authority to require various actions by, or take various actions against, insurers whose total adjusted capital (“TAC”) does not meet or exceed the amounts required to attain certain RBC levels. As of the date of the most recent annual statutory financial statements filed with insurance regulators, the TAC of each of our insurance subsidiaries subject to these requirements was in excess of the amounts required to attain each of those RBC levels.

The amount of dividends that our insurance subsidiaries can ultimately pay to BHF through their various parent entities provides an additional margin for risk protection and investment in our businesses. Such dividends are constrained by the amount of surplus our insurance subsidiaries hold to maintain their ratings, which is generally higher than minimum RBC requirements. We proactively take actions to maintain capital consistent with these ratings objectives, which may include adjusting dividend amounts and deploying financial resources from internal or external sources of capital. Certain of these activities may require regulatory approval. Furthermore, the payment of dividends and other distributions by our insurance subsidiaries is governed by insurance laws and regulations. See Note 10 of the Notes to the Consolidated Financial Statements included in our 2022 Annual Report.

Primary Sources and Uses of Liquidity and Capital

The principal sources of funds available to BHF include distributions from Brighthouse Holdings, LLC (“BH Holdings”), dividends and returns of capital from its insurance subsidiaries and BRCD, capital markets issuances, as well as its own cash and cash equivalents and short-term investments. These sources of funds may also be supplemented by alternate sources of liquidity either directly or indirectly through our insurance subsidiaries. For example, we have established internal liquidity facilities to provide liquidity within and across our regulated and non-regulated entities to support our businesses.

The primary uses of liquidity of BHF include debt-service obligations (including interest expense and debt repayments), preferred stock dividends, capital contributions to subsidiaries, common stock repurchases and payment of general operating expenses. Based on our analysis and comparison of our current and future cash inflows from the dividends we receive from subsidiaries that are permitted to be paid without prior insurance regulatory approval, our investment portfolio and other cash flows and anticipated access to the capital markets, we believe there will be sufficient

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liquidity and capital to enable BHF to make payments on debt, pay preferred stock dividends, contribute capital to its subsidiaries, repurchase its common stock, pay all general operating expenses and meet its cash needs.

In addition to the liquidity and capital sources discussed in “— The Company — Primary Sources of Liquidity and Capital” and “— The Company — Primary Uses of Liquidity and Capital,” the following additional information is provided regarding BHF’s primary sources and uses of liquidity and capital:

Distributions from and Capital Contributions to BH Holdings

During the nine months ended September 30, 2023, BHF did not receive any distributions from BH Holdings. During the nine months ended September 30, 2022, BHF received non-cash distributions of $350 million from BH Holdings.

During the nine months ended September 30, 2023 and 2022, BHF did not make any capital contributions to BH Holdings.

Short-term Intercompany Loans

BHF, as borrower, has a short-term intercompany loan agreement with certain of its non-insurance subsidiaries, as lenders, for the purposes of facilitating the management of the available cash of the borrower and the lenders on a short-term and consolidated basis. Such intercompany loan agreement allows management to optimize the efficient use of and maximize the yield on cash between BHF and its subsidiary lenders. Each loan entered into under this intercompany loan agreement has a term not more than 364 days and bears interest on the unpaid principal amount at a variable rate, payable monthly. During the nine months ended September 30, 2023 and 2022, BHF borrowed $569 million and $661 million, respectively, from certain of its non-insurance subsidiaries and repaid $369 million and $945 million of such borrowings during the nine months ended September 30, 2023 and 2022, respectively. At September 30, 2023 and December 31, 2022, BHF had total obligations outstanding of $713 million and $513 million, respectively, under such agreements.

Intercompany Liquidity Facilities

BHF has established intercompany liquidity facilities with certain of its insurance and non-insurance subsidiaries to provide short-term liquidity within and across the combined group of companies. Under these facilities, which are comprised of a series of revolving loan agreements among BHF and its participating subsidiaries, each company may lend to or borrow from each other, subject to certain maximum limits for a term of up to 364 days, depending on the agreement. During both the nine months ended September 30, 2023 and 2022, there were no borrowings or repayments by BHF under these facilities and, at both September 30, 2023 and December 31, 2022, BHF had no obligations outstanding under such facilities.

Note Regarding Forward-Looking Statements

This report and other oral or written statements that we make from time to time may contain information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve substantial risks and uncertainties. We have tried, wherever possible, to identify such statements using words such as “anticipate,” “estimate,” “expect,” “project,” “may,” “will,” “could,” “intend,” “goal,” “target,” “guidance,” “forecast,” “preliminary,” “objective,” “continue,” “aim,” “plan,” “believe” and other words and terms of similar meaning, or that are tied to future periods, in connection with a discussion of future operating or financial performance. In particular, these include, without limitation, statements relating to future actions, prospective services or products, financial projections, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, as well as trends in operating and financial results.

Any or all forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining the actual future results of Brighthouse Financial. These statements are based on current expectations and the current economic environment and involve a number of risks and uncertainties that are difficult to predict. These statements are not guarantees of future performance. Actual results could differ materially from those expressed or implied in the forward-looking statements due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others:

•differences between actual experience and actuarial assumptions and the effectiveness of our actuarial models;

•higher risk management costs and exposure to increased market risk due to guarantees within certain of our products;

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•the effectiveness of our variable annuity exposure risk management strategy and the impact of such strategy on volatility in our profitability measures and negative effects on our statutory capital;

•material differences between actual outcomes and the sensitivities calculated under certain scenarios that we may utilize in connection with our variable annuity risk management strategies;

•the impact of interest rates on our future ULSG policyholder obligations and net income volatility;

•the potential material adverse effect of changes in accounting standards, practices or policies applicable to us, including changes in the accounting for long-duration contracts;

•loss of business and other negative impacts resulting from a downgrade or a potential downgrade in our financial strength or credit ratings;

•the availability of reinsurance and the ability of the counterparties to our reinsurance or indemnification arrangements to perform their obligations thereunder;

•heightened competition, including with respect to service, product features, scale, price, actual or perceived financial strength, claims-paying ratings, credit ratings, e-business capabilities and name recognition;

•our ability to market and distribute our products through distribution channels;

•any failure of third parties to provide services we need, any failure of the practices and procedures of such third parties and any inability to obtain information or assistance we need from third parties;

•the ability of our subsidiaries to pay dividends to us, and our ability to pay dividends to our shareholders and repurchase our common stock;

•the risks associated with climate change;

•the adverse impact of public health crises, extreme mortality events or similar occurrences on our business and the economy in general;

•the impact of adverse capital and credit market conditions, including with respect to our ability to meet liquidity needs and access capital;

•the impact of economic conditions in the capital markets and the U.S. and global economy, as well as geopolitical events, military actions or catastrophic events, on our profitability measures as well as our investment portfolio, including on realized and unrealized losses and impairments, net investment spread and net investment income;

•the financial risks that our investment portfolio is subject to, including credit risk, interest rate risk, inflation risk, market valuation risk, liquidity risk, real estate risk, derivatives risk, and other factors outside our control;

•the impact of changes in regulation and in supervisory and enforcement policies or interpretations thereof on our insurance business or other operations;

•the potential material negative tax impact of potential future tax legislation that could make some of our products less attractive to consumers or increase our tax liability;

•the effectiveness of our policies, procedures and processes in managing risk;

•the loss or disclosure of confidential information, damage to our reputation and impairment of our ability to conduct business effectively as a result of any failure in cyber- or other information security systems;

•whether all or any portion of the tax consequences of our separation from MetLife, Inc. (together with its subsidiaries and affiliates, “MetLife”) are not as expected, leading to material additional taxes or material adverse consequences to tax attributes that impact us; and

•other factors described in this report and from time to time in documents that we file with the SEC.

For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements included and the risks, uncertainties and other factors identified in our 2022 Annual Report, particularly in the sections entitled “Risk Factors” and “Quantitative and Qualitative Disclosures About Market Risk,” as well as in our other subsequent filings with the SEC. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.

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Corporate Information

We routinely use our Investor Relations website to provide presentations, press releases and other information that may be deemed material to investors. Accordingly, we encourage investors and others interested in the Company to review the information that we share at http://investor.brighthousefinancial.com. In addition, our Investor Relations website allows interested persons to sign up to automatically receive e-mail alerts when we post financial information. Information contained on or connected to any website referenced in this report or any of our other filings with the SEC is not incorporated by reference in this report or in any other report or document we file with the SEC, and any website references are intended to be inactive textual references only unless expressly noted.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We regularly analyze our market risk exposure to interest rate, equity market price, credit spreads and foreign currency exchange rate risks. As a result of that analysis, we have determined that the estimated fair values of certain assets and liabilities are significantly exposed to changes in interest rates, and to a lesser extent, to changes in equity market prices and foreign currency exchange rates. We have exposure to market risk through our insurance and annuity operations and general account investment activities. For purposes of this discussion, “market risk” is defined as changes in estimated fair value resulting from changes in interest rates, equity market prices, credit spreads and foreign currency exchange rates. We may have additional financial impacts other than changes in estimated fair value, which are beyond the scope of this discussion. A description of our market risk exposures may be found under “Quantitative and Qualitative Disclosures About Market Risk” in our First Quarter Form 10-Q.

There have been no material changes to our market risk exposures from the market risk exposures previously disclosed in our First Quarter Form 10-Q with the exception of sensitivity to changes in interest rates. Sensitivity to a 100 basis point rise in interest rates decreased by $978 million, or 18%, to $4.4 billion as of September 30, 2023 from $5.4 billion as of March 31, 2023 primarily as a result of the impact of higher interest rates on the estimated fair value of fixed maturity securities, in line with management expectations.

Item 4. Controls and Procedures

Management, with the participation of the Chief Executive Officer and the Chief Financial Officer, has evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (“Exchange Act”), as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that these disclosure controls and procedures were effective as of September 30, 2023.

MetLife provides certain services to the Company on a transitional basis through services agreements. The Company continues to change business processes, implement systems and establish new third-party arrangements. We consider these in aggregate to be material changes in our internal control over financial reporting.

Other than as noted above, there were no changes to the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended September 30, 2023 that have materially affected, or are reasonably likely to materially affect, these internal controls over financial reporting.

Part II — Other Information

Item 1. Legal Proceedings

See Note 13 of the Notes to the Interim Condensed Consolidated Financial Statements, as well as “Legal Proceedings” in our First Quarter Form 10-Q.

Item 1A. Risk Factors

We discuss in this report, in our 2022 Annual Report and in our other filings with the SEC, various risks that may materially affect our business. In addition, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Note Regarding Forward-Looking Statements” included herein. There have been no material changes to our risk factors from the risk factors previously disclosed in our 2022 Annual Report.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

Purchases of BHF common stock made by or on behalf of BHF or its affiliates during the three months ended September 30, 2023 are set forth below:

Period	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
					(In millions)
July 1 — July 31, 2023	402,893	$	49.16	403,671	$	147
August 1 — August 31, 2023	465,791	$	49.85	465,791	$	124
September 1 — September 30, 2023	413,725	$	49.84	413,884	$	104
Total	1,282,409			1,283,346

__________________

(1)Where applicable, total number of shares purchased includes shares of common stock withheld with respect to option exercise costs and tax withholding obligations associated with the exercise or vesting of share-based compensation awards under our publicly announced benefit plans or programs.

(2)See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company — Primary Uses of Liquidity and Capital — Common Stock Repurchases” and Note 10 of the Notes to the Interim Condensed Consolidated Financial Statements for more information on common stock repurchases.

Item 5. Other Information

Director and Officer 10b5-1 Plans

During the three months ended September 30, 2023, none of the Company’s directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933, as amended).

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Item 6. Exhibits

(Note Regarding Reliance on Statements in Our Contracts: In reviewing the agreements included as exhibits herein, please remember that they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information about Brighthouse Financial, Inc. and its subsidiaries or affiliates or the other parties to the agreements. The agreements contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and (i) should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate; (ii) have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement; (iii) may apply standards of materiality in a way that is different from what may be viewed as material to investors; and (iv) were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments. Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. Additional information about Brighthouse Financial, Inc. and its subsidiaries and affiliates may be found elsewhere herein and Brighthouse Financial, Inc.’s other public filings, which are available without charge through the U.S. Securities and Exchange Commission website at www.sec.gov.)

Exhibit No.	Description
3.1	Restated Certificate of Incorporation of Brighthouse Financial, Inc., dated July 11, 2023, is incorporated by reference to Exhibit 3.3 to our Quarterly Report on Form 10-Q, filed on August 9, 2023.
31.1*	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*	Inline XBRL Taxonomy Extension Schema Document.
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document.
104*	The cover page of Brighthouse Financial, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, formatted in Inline XBRL (included within the Exhibit 101 attachments).

* Filed herewith.

** Furnished herewith.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

BRIGHTHOUSE FINANCIAL, INC.
By:	/s/ Edward A. Spehar
	Name:	Edward A. Spehar
	Title:	Executive Vice President and Chief Financial Officer
		(Duly Authorized Officer and Principal Financial Officer)

Date: November 8, 2023

110

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Eric T. Steigerwalt, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Brighthouse Financial, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 8, 2023

/s/ Eric T. Steigerwalt

Eric T. Steigerwalt

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Edward A. Spehar, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Brighthouse Financial, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 8, 2023

/s/ Edward A. Spehar

Edward A. Spehar

Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

SECTION 906 CERTIFICATION

CERTIFICATION PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE

I, Eric T. Steigerwalt, certify that, to my knowledge, (i) Brighthouse Financial, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Brighthouse Financial, Inc.

Date: November 8, 2023

/s/ Eric T. Steigerwalt

Eric T. Steigerwalt

President and Chief Executive Officer

This certification accompanies this Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by Brighthouse Financial, Inc. (the “Company”) for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

EX-32.2

Exhibit 32.2

SECTION 906 CERTIFICATION

CERTIFICATION PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE

I, Edward A. Spehar, certify that, to my knowledge, (i) Brighthouse Financial, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Brighthouse Financial, Inc.

Date: November 8, 2023

/s/ Edward A. Spehar

Edward A. Spehar

Executive Vice President and Chief Financial Officer

This certification accompanies this Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by Brighthouse Financial, Inc. (the “Company”) for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2023	Nov. 03, 2023
Entity Listings [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Entity File Number	001-37905
Entity Central Index Key	0001685040
Entity Registrant Name	Brighthouse Financial, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-3846992
Entity Address, Address Line One	11225 North Community House Road
Entity Address, City or Town	Charlotte
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28277
City Area Code	980
Local Phone Number	365-7100
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		64,204,798
Common Stock, par value $0.01 per share
Entity Listings [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	BHF
Security Exchange Name	NASDAQ
Depositary Shares, each representing a 1/1,000th interest in a share of 6.600% Non-Cumulative Preferred Stock, Series A
Entity Listings [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/1,000th interest in a share of 6.600% Non-Cumulative Preferred Stock, Series A
Trading Symbol	BHFAP
Security Exchange Name	NASDAQ
Depositary Shares, each representing a 1/1,000th interest in a share of 6.750% Non-Cumulative Preferred Stock, Series B
Entity Listings [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/1,000th interest in a share of 6.750% Non-Cumulative Preferred Stock, Series B
Trading Symbol	BHFAO
Security Exchange Name	NASDAQ
Depositary Shares, each representing a 1/1,000th interest in a share of 5.375% Non-Cumulative Preferred Stock, Series C
Entity Listings [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/1,000th interest in a share of 5.375% Non-Cumulative Preferred Stock, Series C
Trading Symbol	BHFAN
Security Exchange Name	NASDAQ
Depositary Shares, each representing a 1/1,000th interest in a share of 4.625% Non-Cumulative Preferred Stock, Series D
Entity Listings [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/1,000th interest in a share of 4.625% Non-Cumulative Preferred Stock, Series D
Trading Symbol	BHFAM
Security Exchange Name	NASDAQ
6.250% Junior Subordinated Debentures due 2058
Entity Listings [Line Items]
Title of 12(b) Security	6.250% Junior Subordinated Debentures due 2058
Trading Symbol	BHFAL
Security Exchange Name	NASDAQ

XML

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $86,373 and $84,344, respectively; allowance for credit losses of $22 and $7, respectively)	$ 75,433	$ 75,577
Equity securities, at estimated fair value	90	89
Mortgage loans (net of allowance for credit losses of $137 and $119, respectively)	22,682	22,936
Policy loans	1,311	1,282
Limited partnerships and limited liability companies	4,931	4,775
Short-term investments, principally at estimated fair value	1,003	1,081
Other invested assets, principally at estimated fair value (net of allowance for credit losses of $13 and $13, respectively)	3,210	2,852
Total investments	108,660	108,592
Cash and cash equivalents	3,839	4,115
Accrued investment income	1,143	885
Premiums, reinsurance and other receivables (net of allowance for credit losses of $13 and $10, respectively)	19,066	18,548
Deferred policy acquisition costs and value of business acquired	4,919	5,084
Current income tax recoverable	31	38
Deferred income tax asset	2,121	1,736
Market risk benefit assets	694	483
Other assets	368	401
Separate account assets	82,675	84,965
Total assets	223,516	224,847
Liabilities
Future policy benefits	30,404	31,497
Policyholder account balances	78,371	73,527
Market risk benefit liabilities	8,830	10,389
Other policy-related balances	3,806	4,098
Payables for collateral under securities loaned and other transactions	3,941	4,560
Long-term debt	3,157	3,156
Other liabilities	8,198	7,057
Separate account liabilities	82,675	84,965
Total liabilities	219,382	219,249
Contingencies, Commitments and Guarantees (Note 13)
Brighthouse Financial, Inc.’s stockholders’ equity:
Preferred stock, par value $0.01 per share; $1,753 aggregate liquidation preference	0	0
Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 122,790,019 and 122,153,422 shares issued, respectively; 64,703,557 and 68,278,068 shares outstanding, respectively	1	1
Additional paid-in capital	14,022	14,075
Retained earnings (deficit)	(590)	(395)
Treasury stock, at cost; 58,086,462 and 53,875,354 shares, respectively	(2,248)	(2,042)
Accumulated other comprehensive income (loss)	(7,116)	(6,106)
Total Brighthouse Financial, Inc.’s stockholders’ equity	4,069	5,533
Noncontrolling interests	65	65
Total equity	4,134	5,598
Total liabilities and equity	$ 223,516	$ 224,847

XML

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Assets
Amortized cost of fixed maturity securities available-for-sale	$ 86,373	$ 84,344
Fixed maturity securities, allowance for credit losses	22	7
Mortgage loans valuation allowances	137	119
Leveraged leases, allowance for credit losses	13	13
Premiums, reinsurance and other, allowance for credit losses	$ 13	$ 10
Equity
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, aggregate liquidation preference	$ 1,753	$ 1,753
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	122,790,019	122,153,422
Common stock, shares outstanding	64,703,557	68,278,068
Treasury Stock, Common, Shares	58,086,462	53,875,354

XML

Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues
Premiums	$ 194	$ 162	$ 602	$ 495
Universal life and investment-type product policy fees	542	597	1,749	1,886
Net investment income	1,202	877	3,457	3,089
Other revenues	125	122	348	378
Net investment gains (losses)	(53)	(45)	(213)	(179)
Net derivative gains (losses)	(840)	(592)	(3,226)	1,331
Total revenues	1,170	1,121	2,717	7,000
Expenses
Policyholder benefits and claims (including liability remeasurement gains (losses) of ($234), $35, ($234) and $35, respectively)	590	534	1,966	1,926
Interest credited to policyholder account balances	426	405	1,300	937
Amortization of deferred policy acquisition costs and value of business acquired	155	159	468	474
Change in market risk benefits	(1,064)	(984)	(2,170)	(2,625)
Other expenses	473	495	1,453	1,596
Total expenses	580	609	3,017	2,308
Income (loss) before provision for income tax	590	512	(300)	4,692
Provision for income tax expense (benefit)	109	97	(109)	945
Net income (loss)	481	415	(191)	3,747
Less: Net income (loss) attributable to noncontrolling interests	2	2	4	4
Net income (loss) attributable to Brighthouse Financial, Inc.	479	413	(195)	3,743
Less: Preferred stock dividends	26	25	77	78
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders	453	388	(272)	3,665
Comprehensive income (loss)	(754)	(2,424)	(1,201)	(3,315)
Less: Comprehensive income (loss) attributable to noncontrolling interests	2	2	4	4
Comprehensive income (loss) attributable to Brighthouse Financial, Inc.	$ (756)	$ (2,426)	$ (1,205)	$ (3,319)
Earnings per common share
Basic	$ 6.92	$ 5.42	$ (4.08)	$ 49.31
Diluted	$ 6.89	$ 5.39	$ (4.08)	$ 49.00

XML

Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Liability for Future Policy Benefit, Remeasurement Gain (Loss)	$ (234)	$ 35	$ (234)	$ 35

XML

Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings (Deficit)	Treasury Stock, Common	Accumulated Other Comprehensive Income (Loss)	Brighthouse Financial, Inc.’s Stockholders’ Equity	Noncontrolling Interests
Net income (loss)	$ 1,648
Ending Balance at Dec. 31, 2021	8,450	$ 0	$ 1	$ 14,154	$ (4,274)	$ (1,543)	$ 47	$ 8,385	$ 65
Treasury stock acquired in connection with share repurchases	(259)					(259)		(259)
Share-based compensation	1		0	12		(11)		1
Dividends on preferred stock	(53)			(53)				(53)
Change in noncontrolling interests	(2)							0	(2)
Net Income (Loss) Attributable to Parent					3,330			3,330
Net income (loss)	3,332								2
Other comprehensive income (loss), net of income tax	(4,223)						(4,223)	(4,223)
Ending Balance at Jun. 30, 2022	7,246	0	1	14,113	(944)	(1,813)	(4,176)	7,181	65
Beginning Balance at Dec. 31, 2021	8,450	0	1	14,154	(4,274)	(1,543)	47	8,385	65
Dividends on preferred stock	(78)
Net Income (Loss) Attributable to Parent	3,743
Net income (loss)	3,747
Ending Balance at Sep. 30, 2022	4,666	0	1	14,095	(531)	(1,949)	(7,015)	4,601	65
Beginning Balance at Dec. 31, 2021	8,450	0	1	14,154	(4,274)	(1,543)	47	8,385	65
Net income (loss)	3,884
Ending Balance at Dec. 31, 2022	5,598	0	1	14,075	(395)	(2,042)	(6,106)	5,533	65
Beginning Balance at Jun. 30, 2022	7,246	0	1	14,113	(944)	(1,813)	(4,176)	7,181	65
Treasury stock acquired in connection with share repurchases	(136)					(136)		(136)
Share-based compensation	7		0	7		0		7
Dividends on preferred stock	(25)			(25)				(25)
Change in noncontrolling interests	(2)							0	(2)
Net Income (Loss) Attributable to Parent	413				413			413
Net income (loss)	415								2
Other comprehensive income (loss), net of income tax	(2,839)						(2,839)	(2,839)
Ending Balance at Sep. 30, 2022	4,666	0	1	14,095	(531)	(1,949)	(7,015)	4,601	65
Beginning Balance at Dec. 31, 2022	5,598	0	1	14,075	(395)	(2,042)	(6,106)	5,533	65
Treasury stock acquired in connection with share repurchases	(126)					(126)		(126)
Share-based compensation	0		0	15		(15)		0
Dividends on preferred stock	(51)			(51)				(51)
Change in noncontrolling interests	(2)							0	(2)
Net Income (Loss) Attributable to Parent					(674)			(674)
Net income (loss)	(672)								2
Other comprehensive income (loss), net of income tax	225						225	225
Ending Balance at Jun. 30, 2023	4,972	0	1	14,039	(1,069)	(2,183)	(5,881)	4,907	65
Beginning Balance at Dec. 31, 2022	5,598	0	1	14,075	(395)	(2,042)	(6,106)	5,533	65
Dividends on preferred stock	(77)
Net Income (Loss) Attributable to Parent	(195)
Net income (loss)	(191)
Ending Balance at Sep. 30, 2023	4,134	0	1	14,022	(590)	(2,248)	(7,116)	4,069	65
Beginning Balance at Jun. 30, 2023	4,972	0	1	14,039	(1,069)	(2,183)	(5,881)	4,907	65
Treasury stock acquired in connection with share repurchases	(64)					(64)		(64)
Share-based compensation	8		0	9		(1)		8
Dividends on preferred stock	(26)			(26)				(26)
Change in noncontrolling interests	(2)							0	(2)
Net Income (Loss) Attributable to Parent	479				479			479
Net income (loss)	481								2
Other comprehensive income (loss), net of income tax	(1,235)						(1,235)	(1,235)
Ending Balance at Sep. 30, 2023	$ 4,134	$ 0	$ 1	$ 14,022	$ (590)	$ (2,248)	$ (7,116)	$ 4,069	$ 65

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Statement of Cash Flows [Abstract]
Net cash provided by (used in) operating activities	$ (289)	$ (1,002)
Cash flows from investing activities
Sales, maturities and repayments of fixed maturity securities	4,588	8,479
Sales, maturities and repayments of equity securities	16	41
Sales, maturities and repayments of mortgage loans	904	1,770
Sales, maturities and repayments of limited partnerships and limited liability companies	136	180
Purchases of fixed maturity securities	(6,626)	(14,333)
Purchases of equity securities	(6)	(37)
Purchases of mortgage loans	(659)	(4,059)
Purchases of limited partnerships and limited liability companies	(336)	(619)
Cash received in connection with freestanding derivatives	4,013	3,778
Cash paid in connection with freestanding derivatives	(4,640)	(3,395)
Net change in policy loans	(29)	(9)
Net change in short-term investments	112	716
Net change in other invested assets	(117)	(108)
Net cash provided by (used in) investing activities	(2,644)	(7,596)
Cash flows from financing activities
Policyholder account balances: Deposits	16,292	23,545
Policyholder account balances: Withdrawals	(12,773)	(14,264)
Net change in payables for collateral under securities loaned and other transactions	(619)	263
Long-term debt repaid	(1)	(2)
Dividends on preferred stock	(77)	(78)
Treasury stock acquired in connection with share repurchases	(190)	(395)
Financing element on certain derivative instruments and other derivative related transactions, net	43	(137)
Other, net	(18)	(15)
Net cash provided by (used in) financing activities	2,657	8,917
Change in cash, cash equivalents and restricted cash	(276)	319
Cash, cash equivalents and restricted cash, beginning of period	4,115	4,474
Cash, cash equivalents and restricted cash, end of period	3,839	4,793
Supplemental disclosures of cash flow information
Net cash paid (received) for interest	82	83
Net cash paid (received) for income tax	$ 1	$ (120)

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Business, Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business, Basis of Presentation and Summary of Significant Accounting Policies

1. Business, Basis of Presentation and Summary of Significant Accounting Policies

Business

Brighthouse Financial, Inc. (“BHF” and together with its subsidiaries, “Brighthouse Financial” or the “Company”) is a holding company formed in 2016 to own the legal entities that historically operated a substantial portion of MetLife, Inc.’s former retail segment until becoming a separate, publicly-traded company in August 2017. Brighthouse Financial is one of the largest providers of annuity and life insurance products in the U.S. through multiple independent distribution channels and marketing arrangements with a diverse network of distribution partners. 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.

Basis of Presentation

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates.

Consolidation

The accompanying interim condensed consolidated financial statements include the accounts of Brighthouse Financial, as well as partnerships and limited liability companies (“LLC”) that the Company controls. Intercompany accounts and transactions have been eliminated.

The Company uses the equity method of accounting for investments in limited partnerships and LLCs when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. When the Company has virtually no influence over the investee’s operations, the investment is carried at fair value.

The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2022 consolidated balance sheet data was derived from audited consolidated financial statements included in Brighthouse Financial, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2022 Annual Report.

Reclassifications

Certain amounts in the prior year period’s interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform with the 2023 presentation as discussed throughout the Notes to the Interim Condensed Consolidated Financial Statements. See “— Adoption of New Accounting Pronouncements” for discussion of the adoption of new guidance on long-duration contracts in the first quarter of 2023, parts of which were retrospectively applied to prior periods presented in the interim condensed consolidated financial statements.

Summary of Significant Accounting Policies

In connection with the adoption of new guidance on long-duration insurance contracts, the Company updated its impacted accounting policies as described below. See Note 1 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report for a description of the Company’s accounting policies that did not change.

Insurance Contract Obligations

The Company has obligations under insurance contracts to pay benefits over an extended period of time. The Company establishes liabilities for future obligations under long-duration insurance contracts based on the accounting model appropriate for each type of contract or contract feature. Liabilities for insurance contract benefits are generally accrued over time as revenue is recognized, or established based on the balance that accrues to the contract holder. In addition, certain insurance contracts may contain features that are required to be measured at fair value separately from the base contracts, either as a market risk benefit or embedded derivative.

The discussion below provides an overview of the different accounting models for insurance contract obligations and the applicability of such models to the Company’s insurance products.

Liability for Future Policy Benefits

The Company establishes a liability for future policy benefits (“LFPB”) for non-participating term and whole life insurance and income annuities. LFPBs are accrued over time as revenue is recognized based on a net premium ratio. The net premium ratio is the portion of gross premiums required to provide for all future benefits. LFPBs are established using the Company’s current assumptions of future cash flows, discounted at a rate that approximates a single A corporate bond curve. The Company generally aggregates insurance contracts into groupings by issue year, product and segment for determining the net premium ratio and related LFPBs.

The Company reviews cash flow assumptions regularly, and if they change significantly, LFPBs are adjusted by determining a revised net premium ratio. The revised net premium ratio is calculated as of contract inception using both actual historical experience and updated future cash flow assumptions. The recalculated net premium ratio is applied to derive a remeasurement gain or loss recognized in the current period net income. For insurance policies in-force as of December 31, 2020, January 1, 2021 is considered the contract inception date. The net premium ratio is also updated quarterly for the difference between actual and expected experience.

The net premium ratio is not updated for changes in discount rate assumptions, as changes in the discount rate are updated quarterly and the impacts are reflected in other comprehensive income (loss) (“OCI”). The discount rate assumption is determined by developing a yield curve based on market observable yields for upper-medium grade fixed income instruments derived from an external index. The yield curve is applied to the expected future cash flows used in the measurement of LFPBs based on the duration characteristics of those liabilities.

The most significant cash flow assumptions used in the establishment of LFPBs are mortality, policy lapses and market interest rates. See Note 4 for more information on the effect of changes in assumptions on the measurement of LFPBs.

The Company also establishes an LFPB for participating term and whole life insurance using a net premium ratio and the Company’s current assumptions of future cash flows. Assumptions are determined at issuance of the policy and are not updated unless a premium deficiency exists. A premium deficiency exists when the LFPB plus the present value of expected future gross premiums are less than expected future benefits and expenses (based on current assumptions). When a premium deficiency exists, the Company will reduce any deferred acquisition costs and may also establish an additional liability to eliminate the deficiency. See Note 4 for more information on assumptions used in establishing LFPBs related to participating term and whole life insurance.

Policyholder Account Balances

The Company establishes a policyholder account balance liability for customer deposits on universal life insurance, universal life insurance with secondary guarantees (“ULSG”) and deferred annuity contracts. The policyholder account balance liability is equal to the sum of deposits, plus interest credited, less charges and withdrawals, excluding the impact of any applicable charge that may be incurred upon surrender. The Company also holds additional liabilities for certain product features including secondary guarantees on universal life insurance contracts and the crediting rates associated with index-linked annuities.

Additional Liabilities for ULSG

The Company establishes a liability in addition to the account balance for secondary guarantees on universal life insurance. These liabilities are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the contract period based on total expected assessments. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. The Company also maintains a liability for profits followed by losses on ULSG determined by projecting future earnings and establishing a liability to offset losses that are expected to occur in later years. Both ULSG liabilities are adjusted for the effects of unrealized investment gains and losses.

The Company reviews cash flow assumptions regularly, and, if they change significantly, the liability for secondary guarantees is adjusted by a cumulative charge or credit to net income. Liabilities for secondary guarantees are presented within future policy benefits with changes in the liabilities reported in policyholder benefits and claims, except for the effects of unrealized investment gains and losses, which are reported in OCI.

The most significant assumptions used in estimating liabilities for secondary guarantees are the general account rate of return, premium persistency, mortality and lapses. See Note 4 for more information on the effect of changes in assumptions on the measurement of liabilities for secondary guarantees.

Market Risk Benefits on Annuity Guarantees

Market risk benefits (“MRB”) are contracts or contract features that provide protection to the policyholder from capital markets risk by transferring such risks to the Company. MRBs are required to be separated from the deferred annuity host contract and measured at fair value. The Company establishes MRB assets and liabilities for guaranteed minimum benefits on variable annuity contracts including guaranteed minimum death benefits (“GMDB”), guaranteed minimum income benefits (“GMIB”), guaranteed minimum accumulation benefits (“GMAB”) and guaranteed minimum withdrawal benefits (“GMWB”). MRB assets are also established for reinsured benefits related to these guarantees. Certain index-linked annuity products may also have guaranteed minimum benefits classified as MRBs.

The measurement of fair value includes an adjustment for the risk that the Company fails to satisfy its obligations, which is referred to as nonperformance risk, as well as risk margin to capture the non-capital markets risks of the instrument, which represents the additional compensation a market participant would require to assume the risks related to the uncertainties in certain actuarial assumptions. MRBs are measured at estimated fair value, with changes reported in change in MRBs on the consolidated statements of operations, except for the change due to nonperformance risk, which is reported in OCI.

See Note 4 for more information on the effect of changes in inputs and assumptions on the measurement of MRBs and Note 8 for more information on the determination of fair value of MRBs.

Embedded Derivatives on Index-Linked Annuities

The Company issues, and assumes through reinsurance, index-linked annuities which allow the policyholder to participate in returns from certain specified equity indices. The crediting rates associated with these features are classified as embedded derivatives and measured at estimated fair value, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets.

Embedded derivative liabilities are required to be separated from the deferred annuity host contract and measured at fair value. The estimated fair value is determined using a combination of an option pricing model and an option-budget approach. Under this approach, the Company estimates the cost of funding the crediting rate using option pricing and establishes that cost on the balance sheet as a reduction to the initial deposit amount. The estimate of fair value includes an adjustment for nonperformance risk, as well as a risk margin.

Actuarial assumptions are reviewed at least annually, and if they change significantly, the estimated fair value is adjusted through net income. Capital market inputs used in the measurement of index-linked crediting rate embedded derivatives are updated quarterly through net income. The reduction to the initial deposit is accreted back up to the initial deposit over the estimated life of the contract. Embedded derivatives related to index-linked annuities are presented within policyholder account balances while changes in the estimated fair value are reported in net derivative gains (losses).

For more information on the determination of estimated fair value of embedded derivatives, see Note 8.

Recognition of Revenues and Deposits on Insurance Contracts

Premiums related to traditional long-duration contracts are recognized as revenues when due from policyholders. When premiums for income annuities are due over a significantly shorter period than the period over which policyholder benefits are incurred, the Company establishes a deferred profit liability (“DPL”) for the excess of the gross premium over the net premium. DPLs are amortized into net income in proportion to the amount of expected future benefit payments. Assumptions used in the measurement of the DPL are updated at the same time as the related LFPBs, with the updated estimates used to recalculate the DPL as of contract inception. The remeasurement gain or loss from updating DPLs is recognized in current period net income along with the related change in LFPBs.

Deposits related to universal life insurance, deferred annuity contracts and investment contracts are credited to policyholder account balances. Revenues from such contracts consist of asset-based investment management fees, cost of insurance charges, risk charges, policy administration fees and surrender charges. These fees, which are included in universal life and investment-type product policy fees, are recognized when assessed to the contract holder, except for non-level insurance charges which are deferred by the establishment of an unearned revenue liability and amortized over the expected life of the contracts.

Premiums and policy fees are presented net of reinsurance.

Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles

The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are directly related to the successful acquisition or renewal of insurance contracts are capitalized as deferred policy acquisition costs (“DAC”). These costs mainly consist of commissions and include the portion of employees’ compensation and benefits related to time spent selling, underwriting or processing the issuance of new insurance contracts. All other acquisition-related costs are expensed as incurred.

Value of business acquired (“VOBA”) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity and investment-type contracts in-force as of the acquisition date.

The Company amortizes DAC and VOBA in a manner that approximates a straight-line basis over the expected life of the related contracts. For life insurance contracts, amortization is based on projections of amounts of insurance in-force, while projections of policy counts are used for deferred annuity contracts and expected future benefits payments for income annuities. These assumptions are reviewed at least annually, and if they change significantly, updates are recognized through changes to future amortization. VOBA balances are tested annually to determine if the balance is deemed unrecoverable from expected future profits. All changes in DAC and VOBA balances are recorded to net income.

Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of an existing contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If a modification is considered to have substantially changed the contract, the associated DAC or VOBA is written off immediately through net income and any new acquisition costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed.

The Company also has intangible assets representing deferred sales inducements (“DSI”), which are included in other assets, and unearned revenue liabilities, which are included in other policy-related balances. The Company defers sales inducements and unearned revenue and amortizes the balances using the same methodology and assumptions used to amortize DAC and VOBA.

Adoption of New Accounting Pronouncements

Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASU”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. Except as noted below, there were no significant ASUs adopted during the period ended September 30, 2023.

In March 2022, the FASB issued new guidance on Troubled Debt Restructurings (“TDR”) (ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures). This ASU eliminates TDR recognition and measurement guidance and, instead, requires that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. The Company adopted this guidance on January 1, 2023. This ASU was applied prospectively and did not have a material impact on the consolidated financial statements upon adoption but could change the future recognition and measurement of modified loans and other receivables.

In August 2018, the FASB issued new guidance on long-duration contracts (ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (“LDTI”)). LDTI is effective for fiscal years beginning after January 1, 2023. LDTI resulted in significant changes to the measurement, presentation and disclosure requirements for long-duration insurance contracts. A summary of the most significant changes is provided below:

(1) Guaranteed benefits associated with variable annuity and certain fixed annuity contracts have been classified and presented separately on the consolidated balance sheets as MRBs. MRBs are now measured at estimated fair value through net income and reported separately on the consolidated statements of operations, except for nonperformance risk changes, which will be recognized in OCI.

(2) Cash flow assumptions used to measure LFPBs on traditional long-duration contracts (including term and non-participating whole life insurance and immediate annuities) have been updated on an annual basis using a retrospective method. The resulting remeasurement gain or loss is now reported separately on the consolidated statements of operations along with the remeasurement gain or loss on universal life-type contract liabilities.

(3) The discount rate assumption used to measure the liability for traditional long-duration contracts is now based on an upper-medium grade fixed income yield, updated quarterly, with changes recognized in OCI.

(4) DAC for all insurance products are required to be amortized on a constant-level basis over the expected term of the contracts, using amortization methods that are not a function of revenue or profit emergence. Changes in assumptions used to amortize DAC have been recognized as a revision to future amortization amounts.

(5) There was a significant increase in required disclosures, including disaggregated rollforwards of insurance contract assets and liabilities supplemented by qualitative and quantitative information regarding the cash flows, assumptions, methods and judgements used to measure those balances.

The transition date was January 1, 2021. MRB changes were required to be applied on a retrospective basis, while the changes for insurance liability assumption updates and DAC amortization were applied to existing carrying amounts on the transition date.

The cumulative effect, on an after-tax basis, of the adoption of ASU 2018-12 as of the transition date was a $5.4 billion decrease to retained earnings and a $3.9 billion decrease to accumulated other comprehensive income (loss) (“AOCI”). See Note 2 for more detailed information on the impacts of the ASU to the Company’s financial statements.

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Financial Services, Insurance, ASU 2018-12 Transition

9 Months Ended

Sep. 30, 2023

ASU 2018-12 Transition [Abstract]

ASU 2018-12 Transition

2. ASU 2018-12 Transition

The Company adopted ASU 2018-12 for LFPBs, DAC and other balances amortized on a basis consistent with DAC by applying the guidance to contracts in-force on the basis of their existing carrying amounts at the transition date. The Company adopted ASU 2018-12 for MRBs on a fully retrospective basis.

The effect of transition adjustments on stockholders’ equity at January 1, 2021 due to the adoption of ASU 2018-12 was as follows:

	Retained Earnings (Deficit)		AOCI
	(In millions)
Liability for future policy benefits	$	(436)	$	(2,073)
Market risk benefits and related adjustments	(6,237)		(3,454)
DAC and VOBA	—		520
Reinsurance recoverables	(141)		34
Deferred income tax asset	1,431		1,044
Total	$	(5,383)	$	(3,929)

For LFPBs, the transition adjustment to retained earnings relates to instances where net premiums exceed gross premiums resulting in LFPBs being increased to eliminate the premium deficiency. The premium deficiency primarily relates to structured settlement annuities. The transition adjustment related to AOCI represents the effect of the requirement to discount LFPBs based on an upper-medium grade fixed income rate as well as the removal of amounts previously recorded in AOCI for the effects of unrealized investment gains and losses.

For MRBs, the transition adjustment to AOCI relates to the cumulative effect of changes in the nonperformance risk between contract issue date and transition date. In aggregate, the additional spread applied to the risk-free rate decreased from contract inception to the transition date, which had a negative impact on equity. The remaining difference between the estimated fair value and carrying amount of MRBs at transition, excluding the amounts recorded in AOCI, was recorded as an adjustment to retained earnings as of the transition date.

For DAC and VOBA, the Company removed amounts previously recorded in AOCI for the effect of unrealized investment gains and losses.

For reinsurance, the adjustments to both retained earnings and AOCI were made to align the measurement of reinsurance recoverables with the related LFPBs.

The balances of and changes in LFPBs at January 1, 2021 due to the adoption of ASU 2018-12 were as follows:

	Term and Whole Life Insurance		Income Annuities		Structured Settlement and Pension Risk Transfer Annuities
	(In millions)
Balance at December 31, 2020	$	2,854	$	4,311	$	10,115
Removal of related balances in AOCI	—		(203)		(1,784)
Change in cash flow assumptions	14		(171)		200
Initial recognition of deferred profit liabilities	—		176		217
Change in discount rate assumptions	536		754		2,770
Adjusted balance at January 1, 2021	3,404		4,867		11,518
Less: Reinsurance recoverable	85		29		102
Adjusted balance at January 1, 2021, net of reinsurance	$	3,319	$	4,838	$	11,416

The balance of and changes in liabilities classified as MRBs at January 1, 2021 due to the adoption of ASU 2018-12 were as follows:

	Variable Annuities
	(In millions)
Balance at December 31, 2020	$	8,924
Adjustment for the difference between carrying amount and estimated fair value, except for the difference due to nonperformance risk	6,010
Adjustment for cumulative effect of changes in nonperformance risk since issuance	3,454
Adjusted balance at January 1, 2021	18,388
Less: Reinsurance recoverable	169
Adjusted balance at January 1, 2021, net of reinsurance	$	18,219

The balances of and changes in DAC and VOBA on January 1, 2021 due to the adoption of ASU 2018-12 were as follows:

	Variable Annuities		Fixed Rate Annuities		Index-Linked Annuities		Term and Whole Life Insurance		Universal Life Insurance
	(In millions)
DAC:
Balance at December 31, 2020	$	2,440	$	64	$	886	$	527	$	492
Removal of related amounts in AOCI	472		—		—		—		(23)
Adjusted balance at January 1, 2021	$	2,912	$	64	$	886	$	527	$	469
VOBA:
Balance at December 31, 2020	$	363	$	76	$	—	$	8	$	55
Removal of related amounts in AOCI	65		—		—		—		6
Adjusted balance at January 1, 2021	$	428	$	76	$	—	$	8	$	61

The following tables present amounts previously reported in 2022 and 2021, the effect on those amounts of the change due to the adoption of ASU 2018-12 as described in Note 1, and the currently reported amounts in the Unaudited Interim Consolidated Balance Sheets and Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). See Notes 4 and 5 for more information.

	December 31, 2022						December 31, 2021
	As Previously Reported		Effect of Change		As Currently Reported		As Previously Reported		Effect of Change		As Currently Reported
	(In millions)
Total assets	$	225,580	$	(733)	$	224,847	$	259,840	$	2,417	$	262,257
Future policy benefits	$	41,569	$	(10,072)	$	31,497	$	43,807	$	(3,817)	$	39,990
Policyholder account balances	$	74,836	$	(1,309)	$	73,527	$	66,851	$	(1,602)	$	65,249
Market risk benefit liabilities	$	—	$	10,389	$	10,389	$	—	$	16,034	$	16,034
Total liabilities	$	219,542	$	(293)	$	219,249	$	243,633	$	10,174	$	253,807
Retained earnings (deficit)	$	(637)	$	242	$	(395)	$	(642)	$	(3,632)	$	(4,274)
Accumulated other comprehensive income (loss)	$	(5,424)	$	(682)	$	(6,106)	$	4,172	$	(4,125)	$	47
Total equity	$	6,038	$	(440)	$	5,598	$	16,207	$	(7,757)	$	8,450
Total liabilities and equity	$	225,580	$	(733)	$	224,847	$	259,840	$	2,417	$	262,257

	Year Ended December 31, 2022						Year Ended December 31, 2021
	As Previously Reported		Effect of Change		As Currently Reported		As Previously Reported		Effect of Change		As Currently Reported
	(In millions)
Universal life and investment-type product policy fees	$	3,141	$	(706)	$	2,435	$	3,636	$	(656)	$	2,980
Net derivative gains (losses)	$	304	$	(896)	$	(592)	$	(2,469)	$	(1,514)	$	(3,983)
Total revenues	$	8,473	$	(1,600)	$	6,873	$	7,142	$	(2,166)	$	4,976
Policyholder benefits and claims	$	4,165	$	(1,972)	$	2,193	$	3,443	$	(697)	$	2,746
Change in market risk benefits	$	—	$	(4,104)	$	(4,104)	$	—	$	(4,134)	$	(4,134)
Total expenses	$	8,645	$	(6,504)	$	2,141	$	7,350	$	(4,383)	$	2,967
Net income (loss)	$	10	$	3,874	$	3,884	$	(103)	$	1,751	$	1,648

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Segment Information

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Information

3. 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, 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 business reinsured through 100% quota share reinsurance agreements and activities related to funding agreements associated with the Company’s institutional spread margin business.

In connection with the adoption of ASU 2018-12, the Company reclassified direct-to-consumer life insurance that is no longer sold from Corporate & Other to the Life segment. The segment information below reflects the direct-to consumer life insurance in the Life segment for all periods presented.

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); 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 are significant items excluded from total expenses in calculating adjusted earnings:

•Change in MRBs; and

•Change in fair value of the crediting rate on experience-rated contracts (“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 Company’s adjusted earnings definition and presentation has been updated for all periods presented to reflect the adoption of ASU 2018-12.

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. 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. 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:

	Three Months Ended September 30, 2023
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	393	$	(93)	$	120	$	9	$	429
Provision for income tax expense (benefit)	74		(20)		25		(4)		75
Post-tax adjusted earnings	319		(73)		95		13		354
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		2		2
Less: Preferred stock dividends	—		—		—		26		26
Adjusted earnings	$	319	$	(73)	$	95	$	(15)	326
Adjustments for:
Net investment gains (losses)									(53)
Net derivative gains (losses), excluding investment hedge adjustments of $25									(865)
Change in market risk benefits									1,064
Market value adjustments									15
Provision for income tax (expense) benefit									(34)
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders									$	453
Interest revenue	$	652	$	115	$	300	$	160
Interest expense	$	—	$	—	$	—	$	38

	Three Months Ended September 30, 2022
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	246	$	(44)	$	(20)	$	(14)	$	168
Provision for income tax expense (benefit)	44		(10)		(4)		(4)		26
Post-tax adjusted earnings	202		(34)		(16)		(10)		142
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		2		2
Less: Preferred stock dividends	—		—		—		25		25
Adjusted earnings	$	202	$	(34)	$	(16)	$	(37)	115
Adjustments for:
Net investment gains (losses)									(45)
Net derivative gains (losses), excluding investment hedge adjustments of $23									(615)
Change in market risk benefits									984
Market value adjustments									20
Provision for income tax (expense) benefit									(71)
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders									$	388
Interest revenue	$	547	$	77	$	168	$	108
Interest expense	$	—	$	—	$	—	$	38

	Nine Months Ended September 30, 2023
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	1,137	$	(75)	$	(35)	$	19	$	1,046
Provision for income tax expense (benefit)	213		(18)		(8)		(14)		173
Post-tax adjusted earnings	924		(57)		(27)		33		873
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		4		4
Less: Preferred stock dividends	—		—		—		77		77
Adjusted earnings	$	924	$	(57)	$	(27)	$	(48)	792
Adjustments for:
Net investment gains (losses)									(213)
Net derivative gains (losses), excluding investment hedge adjustments of $86									(3,312)
Change in market risk benefits									2,170
Market value adjustments									9
Provision for income tax (expense) benefit									282
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders									$	(272)
Interest revenue	$	1,879	$	334	$	870	$	460
Interest expense	$	—	$	—	$	—	$	114

	Nine Months Ended September 30, 2022
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	1,078	$	75	$	(189)	$	(101)	$	863
Provision for income tax expense (benefit)	202		14		(40)		(34)		142
Post-tax adjusted earnings	876		61		(149)		(67)		721
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		4		4
Less: Preferred stock dividends	—		—		—		78		78
Adjusted earnings	$	876	$	61	$	(149)	$	(149)	639
Adjustments for:
Net investment gains (losses)									(179)
Net derivative gains (losses), excluding investment hedge adjustments of $38									1,293
Change in market risk benefits									2,625
Market value adjustments									90
Provision for income tax (expense) benefit									(803)
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders									$	3,665
Interest revenue	$	1,648	$	352	$	919	$	208
Interest expense	$	—	$	—	$	—	$	114

Total revenues by segment, as well as Corporate & Other, were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Annuities	$	1,214	$	1,091	$	3,630	$	3,422
Life	299		270		915		922
Run-off	413		312		1,241		1,334
Corporate & Other	162		108		456		208
Adjustments	(918)		(660)		(3,525)		1,114
Total	$	1,170	$	1,121	$	2,717	$	7,000

Total assets by segment, as well as Corporate & Other, were as follows at:

	September 30, 2023		December 31, 2022
	(In millions)
Annuities	$	151,734	$	151,192
Life	22,221		22,057
Run-off	27,272		28,436
Corporate & Other	22,289		23,162
Total	$	223,516	$	224,847

XML

Insurance

9 Months Ended

Sep. 30, 2023

Insurance [Abstract]

Insurance

4. Insurance

Liability for Future Policy Benefits

Information regarding LFPBs for non-participating traditional and limited-payment contracts was as follows:

	Nine Months Ended September 30,
	2023									2022
	Term and Whole Life Insurance			Income Annuities			Structured Settlement and Pension Risk Transfer Annuities			Term and Whole Life Insurance			Income Annuities			Structured Settlement and Pension Risk Transfer Annuities
	(Dollars in millions)
Present value of expected net premiums:
Balance, beginning of period	$	2,871		$	—		$	—		$	3,325		$	—		$	—
Beginning balance at original discount rate	3,212			—			—			3,051			—			—
Effect of model refinements	—			—			—			122			—			—
Effect of changes in cash flow assumptions	215			—			—			139			—			—
Effect of actual variances from expected experience	(36)			—			—			90			—			—
Adjusted beginning of period balance	3,391			—			—			3,402			—			—
Issuances	71			—			—			71			—			—
Interest accrual	83			—			—			87			—			—
Net premiums collected	(281)			—			—			(324)			—			—
Ending balance at original discount rate	3,264			—			—			3,236			—			—
Effect of changes in discount rate assumptions	(430)			—			—			(371)			—			—
Balance, end of period	$	2,834		$	—		$	—		$	2,865		$	—		$	—
Present value of expected future policy benefits:
Balance, beginning of period	$	5,279		$	3,512		$	6,793		$	6,426		$	4,333		$	10,171
Beginning balance at original discount rate	5,922			3,897			7,410			5,820			3,865			8,165
Effect of model refinements	—			—			—			135			—			—
Effect of changes in cash flow assumptions	309			—			—			159			—			—
Effect of actual variances from expected experience	(41)			6			(49)			119			(23)			(39)
Adjusted beginning of period balance	6,190			3,903			7,361			6,233			3,842			8,126
Issuances	74			281			—			79			168			—
Interest accrual	162			107			236			167			108			259
Benefit payments	(375)			(296)			(449)			(514)			(267)			(477)
Ending balance at original discount rate	6,051			3,995			7,148			5,965			3,851			7,908
Effect of changes in discount rate assumptions	(867)			(514)			(956)			(712)			(416)			(859)
Balance, end of period	$	5,184		$	3,481		$	6,192		$	5,253		$	3,435		$	7,049
Net liability for future policy benefits, end of period	$	2,350		$	3,481		$	6,192		$	2,388		$	3,435		$	7,049
Less: Reinsurance recoverable, end of period	41			30			—			49			24			69
Net liability for future policy benefits, after reinsurance recoverable	$	2,309		$	3,451		$	6,192		$	2,339		$	3,411		$	6,980
Weighted-average duration of liability	8.8 years			8.3 years			11.6 years			8.5 years			8.4 years			12.7 years
Weighted-average interest accretion rate	3.95		%	3.94		%	4.45		%	3.98		%	3.89		%	4.44		%
Current discount rate	5.87		%	5.87		%	5.91		%	5.46		%	5.44		%	5.46		%
Gross premiums or assessments recognized during period	$	451		$	353		$	—		$	485		$	195		$	—
Expected future gross premiums, undiscounted	$	6,261		$	—		$	—		$	6,842		$	—		$	—
Expected future gross premiums, discounted	$	4,707		$	—		$	—		$	5,065		$	—		$	—
Expected future benefit payments, undiscounted	$	8,378		$	5,663		$	13,909		$	8,264		$	5,448		$	16,721
Expected future benefit payments, discounted	$	6,051		$	3,995		$	7,148		$	5,965		$	3,851		$	7,908

The measurement of LFPBs can be significantly impacted by changes in assumptions for policyholder behavior. As part of the 2023 and 2022 annual actuarial review (“AAR”), the Company updated assumptions regarding mortality and lapses for term and non-participating whole life insurance. The impact from changes in assumptions is presented in effect of changes in cash flow assumptions in the table above.

Information regarding the additional insurance liabilities for universal life-type contracts with secondary guarantees was as follows:

	Nine Months Ended September 30,
	2023			2022
	(Dollars in millions)
Balance, beginning of period	$	6,935		$	7,168
Beginning balance before the effect of unrealized gains and losses	7,175			6,731
Effect of changes in cash flow assumptions	52			(37)
Effect of actual variances from expected experience	75			157
Adjusted beginning of period balance	7,302			6,851
Interest accrual	265			248
Net assessments collected	309			324
Benefit payments	(289)			(369)
Effect of realized capital gains (losses)	—			—
Ending balance before the effect of unrealized gains and losses	7,587			7,054
Effect of unrealized gains and losses	(347)			(83)
Balance, end of period	7,240			6,971
Less: Reinsurance recoverable, end of period	1,409			1,393
Net additional liability, after reinsurance recoverable	$	5,831		$	5,578
Weighted-average duration of liability	6.7 years			6.7 years
Weighted-average interest accretion rate	4.92		%	4.90		%
Gross assessments recognized during period	$	798		$	834

The measurement of liabilities for secondary guarantees can be significantly impacted by changes in the expected general account rate of return, which is driven by the Company’s assumption for long-term treasury yields. The Company’s practice of projecting treasury yields uses a mean reversion approach that assumes that long-term interest rates are less influenced by short-term fluctuations and are only changed when sustained interim deviations are expected. As part of the 2023 AAR, the Company increased the long-term general account earned rate, driven by an increase in the mean reversion rate from 3.50% to 3.75%. The Company also updated assumptions regarding policyholder behavior, including mortality, premium persistency, lapses, withdrawals and maintenance expenses. As part of the 2022 AAR, the Company increased the long-term general account earned rate, driven by an increase in the mean reversion rate from 3.00% to 3.50%. Both period assumption updates are reflected in the table above.

A reconciliation of the net LFPBs for nonparticipating traditional and limited-payment contracts and the additional insurance liabilities for universal life-type contracts with secondary guarantees reported in the preceding rollforward tables to LFPBs on the consolidated balance sheets was as follows at:

	September 30,
	2023		2022
	(In millions)
Liabilities reported in the preceding rollforward tables	$	19,263	$	19,843
Long-term care insurance (1)	5,276		5,632
ULSG liabilities, including liability for profits followed by losses	1,966		2,866
Participating whole life insurance (2)	3,054		2,900
Deferred profit liabilities	459		379
Other	386		396
Total liability for future policy benefits	$	30,404	$	32,016

_______________

(1)Includes liabilities related to fully reinsured individual long-term care insurance. See Note 3.

(2)Participating whole life insurance uses an interest assumption based on the non-forfeiture interest rate, ranging from 3.5% to 4.5%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts, and also includes a liability for terminal dividends. Participating whole life insurance represented 3% of the Company’s life insurance in-force at both September 30, 2023 and 2022, and 40% and 41% of gross traditional life insurance premiums for the nine months ended September 30, 2023 and 2022, respectively.

Information regarding LFPBs for non-participating traditional and limited-payment contracts was as follows:

	Years Ended December 31,
	2022						2021
	Term and Whole Life Insurance		Income Annuities		Structured Settlement and Pension Risk Transfer Annuities		Term and Whole Life Insurance		Income Annuities		Structured Settlement and Pension Risk Transfer Annuities
	(Dollars in millions)
Present value of expected net premiums:
Balance, beginning of year	$	3,325	$	—	$	—	$	3,448	$	—	$	—
Beginning balance at original discount rate	3,051		—		—		2,994		—		—
Effect of model refinements	122		—		—		—		—		—
Effect of changes in cash flow assumptions	137		—		—		70		—		—
Effect of actual variances from expected experience	119		—		—		153		—		—
Adjusted beginning of year balance	3,429		—		—		3,217		—		—
Issuances	93		—		—		113		—		—
Interest accrual	116		—		—		111		—		—
Net premiums collected	(426)		—		—		(390)		—		—
Ending balance at original discount rate	3,212		—		—		3,051		—		—
Effect of changes in discount rate assumptions	(341)		—		—		274		—		—
Balance, end of year	$	2,871	$	—	$	—	$	3,325	$	—	$	—
Present value of expected future policy benefits:
Balance, beginning of year	$	6,426	$	4,333	$	10,171	$	6,852	$	4,691	$	11,301
Beginning balance at original discount rate	5,820		3,865		8,165		5,862		3,938		8,531
Effect of model refinements	135		—		(278)		—		—		—
Effect of changes in cash flow assumptions	157		56		(157)		70		(41)		(41)
Effect of actual variances from expected experience	155		(22)		(23)		153		(6)		(16)
Adjusted beginning of year balance	6,267		3,899		7,707		6,085		3,891		8,474
Issuances	101		224		—		128		198		—
Interest accrual	222		146		327		222		150		359
Benefit payments	(668)		(372)		(624)		(615)		(374)		(668)
Ending balance at original discount rate	5,922		3,897		7,410		5,820		3,865		8,165
Effect of changes in discount rate assumptions	(643)		(385)		(617)		606		468		2,006
Balance, end of year	$	5,279	$	3,512	$	6,793	$	6,426	$	4,333	$	10,171
Net liability for future policy benefits, end of year	$	2,408	$	3,512	$	6,793	$	3,101	$	4,333	$	10,171
Less: Reinsurance recoverable, end of year	45		24		68		64		27		93
Net liability for future policy benefits, after reinsurance recoverable	$	2,363	$	3,488	$	6,725	$	3,037	$	4,306	$	10,078

Policyholder Account Balances

Information regarding policyholder account balances was as follows:

	Universal Life Insurance			Variable Annuities (1)			Index-linked Annuities			Fixed Rate Annuities			ULSG			Company-Owned Life Insurance (1)
	(Dollars in millions)
Nine Months Ended September 30, 2023
Balance, beginning of period	$	2,658		$	4,908		$	33,897		$	14,274		$	5,307		$	641
Premiums and deposits	171			63			5,314			1,983			501			—
Surrenders and withdrawals	(140)			(486)			(2,588)			(1,518)			(17)			—
Benefit payments	(52)			(89)			(177)			(285)			(67)			(6)
Net transfers from (to) separate account	42			8			—			—			—			—
Interest credited	33			98			299			357			165			22
Policy charges	(167)			(19)			(6)			—			(764)			(7)
Changes related to embedded derivatives	—			—			1,880			—			—			—
Balance, end of period	$	2,545		$	4,483		$	38,619		$	14,811		$	5,125		$	650
Weighted-average crediting rate (2)	1.27		%	2.09		%	1.02		%	2.43		%	3.17		%	3.41		%
Nine Months Ended September 30, 2022
Balance, beginning of period	$	2,694		$	4,743		$	32,000		$	11,849		$	5,569		$	646
Premiums and deposits	164			127			5,081			2,181			529			—
Surrenders and withdrawals	(69)			(332)			(1,578)			(439)			(26)			—
Benefit payments	(50)			(89)			(123)			(255)			(58)			(5)
Net transfers from (to) separate account	38			174			—			—			—			(13)
Interest credited	53			120			301			243			152			16
Policy charges	(167)			(20)			(5)			—			(786)			(5)
Changes related to embedded derivatives	—			—			(4,086)			—			—			—
Balance, end of period	$	2,663		$	4,723		$	31,590		$	13,579		$	5,380		$	639
Weighted-average crediting rate (2)	1.98		%	2.53		%	0.84		%	1.98		%	2.77		%	2.47		%

_______________

(1)Includes liabilities related to separate account products where the contract holder elected a general account investment option.

(2)Excludes the effects of embedded derivatives related to index-linked crediting rates.

A reconciliation of policyholder account balances reported in the preceding rollforward table to the liability for policyholder account balances on the consolidated balance sheets was as follows at:

	September 30,
	2023		2022
	(In millions)
Policyholder account balances reported in the preceding rollforward table	$	66,233	$	58,574
Funding agreements classified as investment contracts	11,052		9,959
Other investment contract liabilities	1,086		1,216
Total policyholder account balances	$	78,371	$	69,749

The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums was as follows at:

Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 to 50 Basis Points Above		51 to 150 Basis Points Above		Greater than 150 Basis Points Above		Total
	(In millions)
September 30, 2023
Annuities (1):
Less than 2.00%	$	723	$	254	$	474	$	7,185	$	8,636
2.00% to 3.99%	9,730		117		227		67		10,141
Greater than 3.99%	904		—		—		—		904
Total	$	11,357	$	371	$	701	$	7,252	$	19,681
Life insurance (2) (3):
Less than 2.00%	$	—	$	—	$	—	$	216	$	216
2.00% to 3.99%	—		488		49		136		673
Greater than 3.99%	1,614		—		—		—		1,614
Total	$	1,614	$	488	$	49	$	352	$	2,503
ULSG (3):
Less than 2.00%	$	—	$	—	$	—	$	—	$	—
2.00% to 3.99%	1,159		1,506		1,680		257		4,602
Greater than 3.99%	513		—		—		—		513
Total	$	1,672	$	1,506	$	1,680	$	257	$	5,115
December 31, 2022
Annuities (1):
Less than 2.00%	$	861	$	317	$	369	$	5,821	$	7,368
2.00% to 3.99%	6,119		4,872		596		10		11,597
Greater than 3.99%	525		—		—		—		525
Total	$	7,505	$	5,189	$	965	$	5,831	$	19,490
Life insurance (2) (3):
Less than 2.00%	$	—	$	—	$	—	$	172	$	172
2.00% to 3.99%	—		510		87		154		751
Greater than 3.99%	1,657		—		—		—		1,657
Total	$	1,657	$	510	$	87	$	326	$	2,580
ULSG (3):
Less than 2.00%	$	—	$	—	$	—	$	—	$	—
2.00% to 3.99%	1,225		1,581		1,729		266		4,801
Greater than 3.99%	527		—		—		—		527
Total	$	1,752	$	1,581	$	1,729	$	266	$	5,328

_______________

(1)Includes policyholder account balances for fixed rate annuities and the fixed account portion of variable annuities.

(2)Includes policyholder account balances for retained asset accounts, universal life policies and the fixed account portion of universal variable life insurance policies.

(3)Amounts are gross of policy loans.

Market Risk Benefits

Information regarding MRB assets and liabilities associated with variable annuities was as follows:

	Nine Months Ended September 30,				Years Ended December 31,
	2023		2022		2022		2021
	(Dollars in millions)
Balance, beginning of period	$	9,974	$	15,698	$	15,698	$	18,388
Balance, beginning of period, before effect of changes in nonperformance risk	8,230		11,611		11,611		14,934
Decrements	(114)		19		16		(68)
Effect of changes in future expected assumptions	259		210		210		41
Effect of actual different from expected experience	178		(332)		(48)		(86)
Effect of changes in interest rates	(2,360)		(8,393)		(8,394)		(1,829)
Effect of changes in fund returns	(669)		5,607		3,807		(2,578)
Issuances	(9)		(29)		(47)		(96)
Effect of changes in risk margin	(52)		(120)		(152)		(128)
Aging of the block and other	1,025		946		1,227		1,421
Balance, end of period, before effect of changes in nonperformance risk	6,488		9,519		8,230		11,611
Effect of changes in nonperformance risk	1,690		1,580		1,744		4,087
Balance, end of period	8,178		11,099		9,974		15,698
Less: Reinsurance recoverable, end of period	35		76		71		118
Balance, end of period, net of reinsurance (1)	$	8,143	$	11,023	$	9,903	$	15,580
Weighted-average attained age of contract holder	72.6 years		71.6 years		71.8 years		71.1 years

_______________

(1)Amounts represent the sum of MRB assets and MRB liabilities presented on the consolidated balance sheets at September 30, 2023 and 2022, with the exception of ($7) million and $2 million, respectively, of index-linked annuities not included in this table, and at December 31, 2022 and 2021, with the exception of $3 million and $5 million, respectively, of index-linked annuities not included in this table.

Market conditions, including, but not limited to, changes in interest rates, equity indices, market volatility and variations in actuarial assumptions, including policyholder behavior, mortality and risk margins related to non-capital markets inputs, as well as changes in nonperformance risk, may result in significant fluctuations in the estimated fair value of the guarantees. As part of the AAR in 2023 and 2022, the Company updated assumptions regarding policyholder behavior, mortality, separate account fund allocations and volatility, which are reflected in the table above.

Separate Accounts

Information regarding separate account liabilities was as follows:

	Nine Months Ended September 30,
	2023						2022
	Variable Annuities		Universal Life Insurance		Company-Owned Life Insurance		Variable Annuities		Universal Life Insurance		Company-Owned Life Insurance
	(In millions)
Balance, beginning of period	$	77,653	$	5,218	$	1,932	$	105,023	$	6,862	$	2,384
Premiums and deposits	599		122		—		1,021		131		—
Surrenders and withdrawals	(4,603)		(138)		(11)		(4,684)		(131)		(11)
Benefit payments	(1,101)		(51)		(21)		(1,043)		(52)		(25)
Investment performance	4,175		440		174		(23,515)		(1,706)		(457)
Policy charges	(1,638)		(152)		(37)		(1,757)		(151)		(51)
Net transfers from (to) general account	(8)		(42)		—		(174)		(38)		13
Other	(5)		—		(1)		46		(1)		2
Balance, end of period	$	75,072	$	5,397	$	2,036	$	74,917	$	4,914	$	1,855

A reconciliation of separate account liabilities reported in the preceding rollforward table to the separate account liabilities balance on the consolidated balance sheets was as follows at:

	September 30,
	2023		2022
	(In millions)
Separate account liabilities reported in the preceding rollforward table	$	82,505	$	81,686
Variable income annuities	152		137
Pension risk transfer annuities	18		15
Total separate account liabilities	$	82,675	$	81,838

The aggregate estimated fair value of assets, by major investment asset category, supporting separate accounts was as follows at:

	September 30, 2023		December 31, 2022
	(In millions)
Equity securities	$	82,419	$	84,667
Fixed maturity securities	244		278
Cash and cash equivalents	6		9
Other assets	6		11
Total aggregate estimated fair value of assets	$	82,675	$	84,965

Net Amount at Risk and Cash Surrender Values

Information regarding the net amount at risk and cash surrender value for insurance products was as follows at:

	Universal Life Insurance		Variable Annuities		Index-linked Annuities		Fixed Rate Annuities		ULSG		Company-Owned Life Insurance
	(In millions)
September 30, 2023
Account balances reported in the preceding rollforward tables:
Policyholder account balances	$	2,545	$	4,483	$	38,619	$	14,811	$	5,125	$	650
Separate account liabilities	5,397		75,072		—		—		—		2,036
Total account balances	$	7,942	$	79,555	$	38,619	$	14,811	$	5,125	$	2,686
Net amount at risk	$	36,238	$	16,127	N/A		N/A		$	69,277	$	2,625
Cash surrender value	$	7,346	$	79,155	$	36,164	$	14,189	$	6,121	$	2,469
September 30, 2022
Account balances reported in the preceding rollforward tables:
Policyholder account balances	$	2,663	$	4,723	$	31,590	$	13,579	$	5,380	$	639
Separate account liabilities	4,914		74,917		—		—		—		1,855
Total account balances	$	7,577	$	79,640	$	31,590	$	13,579	$	5,380	$	2,494
Net amount at risk	$	38,783	$	18,461	N/A		N/A		$	71,142	$	3,413
Cash surrender value	$	6,918	$	79,523	$	28,922	$	12,748	$	6,315	$	2,284

Products may contain both separate account and general account fund options; accordingly, net amount at risk and cash surrender value reported in the table above relate to the total account balance for each respective product grouping.

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Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles

9 Months Ended

Sep. 30, 2023

Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract]

Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles

5. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles

Deferred Policy Acquisition Costs and Value of Business Acquired

Information regarding DAC and VOBA was as follows:

	Variable Annuities		Fixed Rate Annuities		Index-linked Annuities		Term and Whole Life Insurance		Universal Life Insurance
	(In millions)
Nine Months Ended September 30, 2023
DAC:
Balance, beginning of period	$	2,508	$	107	$	1,213	$	405	$	392
Capitalization	29		9		255		1		9
Amortization	(185)		(8)		(167)		(40)		(35)
Balance, end of period	2,352		108		1,301		366		366
VOBA:
Balance, beginning of period	341		65		—		5		48
Amortization	(24)		(4)		—		(1)		(4)
Balance, end of period	317		61		—		4		44
Total DAC and VOBA:
Balance, end of period	$	2,669	$	169	$	1,301	$	370	$	410
Nine Months Ended September 30, 2022
DAC:
Balance, beginning of period	$	2,718	$	89	$	1,081	$	462	$	431
Capitalization	48		20		252		—		8
Amortization	(200)		(10)		(145)		(45)		(38)
Balance, end of period	2,566		99		1,188		417		401
VOBA:
Balance, beginning of period	377		70		—		6		54
Amortization	(27)		(4)		—		(1)		(4)
Balance, end of period	350		66		—		5		50
Total DAC and VOBA:
Balance, end of period	$	2,916	$	165	$	1,188	$	422	$	451

	Variable Annuities		Fixed Rate Annuities		Index-linked Annuities		Term and Whole Life Insurance		Universal Life Insurance
	(In millions)
DAC:
Adjusted balance at January 1, 2021 (1)	$	2,912	$	64	$	886	$	527	$	469
Capitalization	90		37		354		(3)		16
Amortization	(284)		(12)		(159)		(62)		(54)
Balance at December 31, 2021	2,718		89		1,081		462		431
Capitalization	55		30		330		(1)		11
Amortization	(265)		(12)		(198)		(56)		(50)
Balance at December 31, 2022	$	2,508	$	107	$	1,213	$	405	$	392
VOBA:
Adjusted balance at January 1, 2021 (1)	$	428	$	76	$	—	$	8	$	61
Amortization	(51)		(6)		—		(2)		(7)
Balance at December 31, 2021	377		70		—		6		54
Amortization	(36)		(5)		—		(1)		(6)
Balance at December 31, 2022	341		65		—		5		48
Total DAC and VOBA:
Balance at December 31, 2022	$	2,849	$	172	$	1,213	$	410	$	440
Balance at December 31, 2021	$	3,095	$	159	$	1,081	$	468	$	485

_______________

(1)Includes an adjustment to eliminate balances included in AOCI related to the adoption of ASU 2018-12 (see Note 2).

Deferred Sales Inducements

Information regarding DSI, included in other assets, was as follows:

	Nine Months Ended September 30,
	2023				2022
	Variable Annuities		Fixed Rate Annuities		Variable Annuities		Fixed Rate Annuities
	(In millions)
Balance, beginning of period	$	245	$	9	$	272	$	10
Amortization	(19)		(1)		(21)		(1)
Balance, end of period	$	226	$	8	$	251	$	9

Unearned Revenue

Information regarding unearned revenue, included in other policy-related balances, was as follows:

	Nine Months Ended September 30,
	2023						2022
	Universal Life Insurance		ULSG		Variable Annuities		Universal Life Insurance		ULSG		Variable Annuities
	(In millions)
Balance, beginning of period	$	356	$	488	$	74	$	358	$	344	$	80
Capitalization	29		132		—		29		137		1
Amortization	(29)		(36)		(6)		(30)		(26)		(6)
Balance, end of period	$	356	$	584	$	68	$	357	$	455	$	75

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Investments

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Investments

6. Investments

See Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report for a description of the Company’s accounting policies for investments and the fair value hierarchy for investments and the related valuation methodologies.

Fixed Maturity Securities Available-for-sale

Fixed Maturity Securities by Sector

Fixed maturity securities by sector were as follows at:

	September 30, 2023										December 31, 2022
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized				Estimated Fair Value		Amortized Cost		Allowance for Credit Losses		Gross Unrealized				Estimated Fair Value
					Gains		Losses								Gains		Losses
	(In millions)
U.S. corporate	$	38,294	$	14	$	84	$	5,454	$	32,910	$	36,926	$	1	$	203	$	4,521	$	32,607
Foreign corporate	12,709		—		20		2,051		10,678		12,471		1		38		1,932		10,576
U.S. government and agency	8,640		—		34		872		7,802		8,318		—		300		602		8,016
RMBS	8,235		6		31		1,209		7,051		8,431		2		44		945		7,528
CMBS	7,112		2		1		803		6,308		7,324		3		—		710		6,611
ABS	6,294		—		12		192		6,114		5,652		—		3		296		5,359
State and political subdivision	4,010		—		64		470		3,604		4,074		—		125		400		3,799
Foreign government	1,079		—		20		133		966		1,148		—		39		106		1,081
Total fixed maturity securities	$	86,373	$	22	$	266	$	11,184	$	75,433	$	84,344	$	7	$	752	$	9,512	$	75,577

The Company held non-income producing fixed maturity securities with an estimated fair value of $12 million at September 30, 2023. The Company did not hold non-income producing fixed maturity securities at December 31, 2022.

Maturities of Fixed Maturity Securities

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at September 30, 2023:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Securities (1)		Total Fixed Maturity Securities
	(In millions)
Amortized cost	$	2,207	$	16,877	$	15,314	$	30,334	$	21,641	$	86,373
Estimated fair value	$	2,163	$	15,977	$	13,185	$	24,635	$	19,473	$	75,433

_______________

(1)Structured securities include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”).

Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity.

Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector

The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at:

	September 30, 2023								December 31, 2022
	Less than 12 Months				12 Months or Greater				Less than 12 Months				12 Months or Greater
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(Dollars in millions)
U.S. corporate	$	8,766	$	881	$	21,485	$	4,573	$	24,509	$	3,351	$	3,979	$	1,170
Foreign corporate	2,032		164		8,039		1,887		8,260		1,413		1,601		519
U.S. government and agency	3,098		175		3,395		697		3,121		265		1,147		337
RMBS	1,163		115		5,398		1,094		4,731		497		2,246		448
CMBS	1,425		169		4,681		634		5,589		543		970		167
ABS	1,336		18		3,515		174		3,347		159		1,733		137
State and political subdivision	1,116		120		1,399		350		2,041		317		247		83
Foreign government	200		14		575		119		777		99		21		7
Total fixed maturity securities	$	19,136	$	1,656	$	48,487	$	9,528	$	52,375	$	6,644	$	11,944	$	2,868
Total number of securities in an unrealized loss position	2,938				7,027				7,309				2,049

Allowance for Credit Losses for Fixed Maturity Securities

Evaluation and Measurement Methodologies

For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in OCI.

Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses).

Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses.

Accrued interest receivables are presented separate from the amortized cost basis of fixed maturity securities. An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income. The accrued interest receivable on fixed maturity securities totaled $689 million and $602 million at September 30, 2023 and December 31, 2022, respectively, and is included in accrued investment income.

Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”). To determine if the credit deterioration experienced since origination is more than insignificant, both (i) the extent of the credit deterioration and (ii) any rating agency downgrades are evaluated. For securities categorized as PCD assets, the present value of cash flows expected to be collected from the security are compared to the par value of the security. If the present value of cash flows expected to be collected is less than the par value, credit losses are embedded in the purchase price of the PCD asset. In this situation, both an allowance for credit losses and amortized cost gross-up is recorded, limited by the amount that the estimated fair value is less than the grossed-up amortized cost basis. Any difference between the purchase price and the present value of cash flows is amortized or accreted into net investment income over the life of the PCD asset. Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities.

Current Period Evaluation

Based on the Company’s current evaluation of its fixed maturity securities in an unrealized loss position and the current intent or requirement to sell, the Company recorded an allowance for credit losses of $22 million, relating to 24 securities at September 30, 2023. Management concluded that for all other fixed maturity securities in an unrealized loss position, the unrealized loss was not due to issuer-specific credit-related factors and as a result was recognized in OCI. Where unrealized losses have not been recognized into income, it is primarily because the securities’ bond issuer(s) are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in estimated fair value is largely due to changes in interest rates and non-issuer specific credit spreads. These issuers continued to make timely principal and interest payments and the estimated fair value is expected to recover as the securities approach maturity.

Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector

The changes in the allowance for credit losses by sector were as follows:

	U.S. Corporate		RMBS		Foreign Corporate		CMBS		Total
	(In millions)
Nine Months Ended September 30, 2023
Balance, beginning of period	$	1	$	2	$	1	$	3	$	7
Allowance on securities where credit losses were not previously recorded	14		4		—		—		18
Reductions for securities sold	(1)		—		—		(1)		(2)
Change in allowance on securities with an allowance recorded in a previous period	—		—		—		—		—
Write-offs charged against allowance (1)	—		—		(1)		—		(1)
Balance, end of period	$	14	$	6	$	—	$	2	$	22
Nine Months Ended September 30, 2022
Balance, beginning of period	$	2	$	—	$	7	$	2	$	11
Allowance on securities where credit losses were not previously recorded	—		1		—		—		1
Reductions for securities sold	(1)		—		—		—		(1)
Change in allowance on securities with an allowance recorded in a previous period	—		1		—		—		1
Write-offs charged against allowance (1)	—		—		(7)		—		(7)
Balance, end of period	$	1	$	2	$	—	$	2	$	5

_______________

(1)The Company recorded total write-offs of $8 million and $10 million for the nine months ended September 30, 2023 and 2022, respectively.

Mortgage Loans

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:

	September 30, 2023				December 31, 2022
	Carrying Value		% of Total		Carrying Value		% of Total
	(Dollars in millions)
Commercial	$	13,307	58.6	%	$	13,574	59.2	%
Agricultural	4,461		19.7		4,365		19.0
Residential	5,051		22.3		5,116		22.3
Total mortgage loans (1)	22,819		100.6		23,055		100.5
Allowance for credit losses	(137)		(0.6)		(119)		(0.5)
Total mortgage loans, net	$	22,682	100.0	%	$	22,936	100.0	%

_______________

(1)Purchases of mortgage loans from third parties were $224 million and $255 million for the three months and nine months ended September 30, 2023, respectively, and $387 million and $1.6 billion for the three months and nine months ended September 30, 2022, respectively, and were primarily comprised of residential mortgage loans.

Allowance for Credit Losses for Mortgage Loans

Evaluation and Measurement Methodologies

The allowance for credit losses is a valuation account that is deducted from the mortgage loan’s amortized cost basis to present the net amount expected to be collected on the mortgage loan. The loan balance, or a portion of the loan balance, is written-off against the allowance when management believes this amount is uncollectible.

Accrued interest receivables are presented separate from the amortized cost basis of mortgage loans. An allowance for credit losses is generally not estimated on an accrued interest receivable, rather when a loan is placed in nonaccrual status the associated accrued interest receivable balance is written off with a corresponding reduction to net investment income. The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $118 million and $115 million at September 30, 2023 and December 31, 2022, respectively.

The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two-years is used with an input reversion period of one-year.

Mortgage loans are evaluated in each of the three portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity. The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, modifications, foreclosure probable loans, and loans with dissimilar risk characteristics.

Mortgage loans are also evaluated to determine if they qualify as PCD assets. To determine if the credit deterioration experienced since origination is more than insignificant, the extent of credit deterioration is evaluated. All re-performing/modified loan (“RPL”) pools purchased after December 31, 2019 are determined to have been acquired with evidence of more than insignificant credit deterioration since origination and are classified as PCD assets. RPLs are pools of residential mortgage loans acquired at a discount or premium which have both credit and non-credit components. For PCD mortgage loans, the allowance for credit losses is determined using a similar methodology described above, except the loss-rate is determined at the pool level instead of the individual loan level. The initial allowance for credit losses, determined on a collective basis, is then allocated to the individual loans. The initial amortized cost of the loan is grossed-up to reflect the sum of the loan’s purchase price and allowance for credit losses. The difference between the grossed-up amortized cost basis and the par value of the loan is a non-credit discount or premium, which is accreted or amortized into net investment income over the remaining life of the loan. Any subsequent PCD mortgage loan allowance for credit losses is evaluated in a manner similar to the process described above for each of the three portfolio segments.

Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment

The changes in the allowance for credit losses by portfolio segment were as follows:

	Commercial		Agricultural		Residential		Total
	(In millions)
Nine Months Ended September 30, 2023
Balance, beginning of period	$	49	$	15	$	55	$	119
Current period provision	22		1		—		23
Charge-offs, net of recoveries	(4)		(1)		—		(5)
Balance, end of period	$	67	$	15	$	55	$	137
Nine Months Ended September 30, 2022
Balance, beginning of period	$	67	$	12	$	44	$	123
Current period provision	1		3		(5)		(1)
Charge-offs, net of recoveries	(23)		—		—		(23)
Balance, end of period	$	45	$	15	$	39	$	99

Credit Quality of Mortgage Loans by Portfolio Segment

The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at:

	2023		2022		2021		2020		2019		Prior		Total
	(In millions)
September 30, 2023
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%	$	161	$	1,876	$	2,515	$	224	$	1,289	$	2,826	$	8,891
65% to 75%	—		529		650		177		269		1,195		2,820
76% to 80%	—		12		50		39		209		508		818
Greater than 80%	—		—		—		—		95		683		778
Total commercial mortgage loans	161		2,417		3,215		440		1,862		5,212		13,307
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%	160		574		1,138		459		507		1,334		4,172
65% to 75%	—		127		107		6		31		18		289
Greater than 80%	—		—		—		—		—		—		—
Total agricultural mortgage loans	160		701		1,245		465		538		1,352		4,461
Residential mortgage loans
Performing	99		1,274		1,693		149		208		1,543		4,966
Nonperforming	—		20		20		1		2		42		85
Total residential mortgage loans	99		1,294		1,713		150		210		1,585		5,051
Total	$	420	$	4,412	$	6,173	$	1,055	$	2,610	$	8,149	$	22,819

	2022		2021		2020		2019		2018		Prior		Total
	(In millions)
December 31, 2022
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%	$	1,916	$	2,819	$	405	$	1,493	$	888	$	3,627	$	11,148
65% to 75%	503		354		—		271		367		425		1,920
76% to 80%	—		18		40		90		65		48		261
Greater than 80%	—		—		—		25		57		163		245
Total commercial mortgage loans	2,419		3,191		445		1,879		1,377		4,263		13,574
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%	532		1,163		420		496		643		740		3,994
65% to 75%	148		90		59		56		1		16		370
Greater than 80%	—		—		—		—		1		—		1
Total agricultural mortgage loans	680		1,253		479		552		645		756		4,365
Residential mortgage loans
Performing	1,266		1,745		167		215		168		1,491		5,052
Nonperforming	4		8		—		2		1		49		64
Total residential mortgage loans	1,270		1,753		167		217		169		1,540		5,116
Total	$	4,369	$	6,197	$	1,091	$	2,648	$	2,191	$	6,559	$	23,055

The loan-to-value ratio is a measure commonly used to assess the quality of commercial and agricultural mortgage loans. The loan-to-value ratio compares the amount of the loan to the estimated fair value of the underlying property collateralizing the loan and is commonly expressed as a percentage. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. Performing status is a measure commonly used to assess the quality of residential mortgage loans. A loan is considered performing when the borrower makes consistent and timely payments.

The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at:

	September 30, 2023				December 31, 2022
	Amortized Cost		% of Total		Amortized Cost		% of Total
	(Dollars in millions)
Debt-service coverage ratios:
Greater than 1.20x	$	12,276	92.2	%	$	12,157	89.6	%
1.00x - 1.20x	540		4.1		590		4.3
Less than 1.00x	491		3.7		827		6.1
Total	$	13,307	100.0	%	$	13,574	100.0	%

The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios less than 1.00 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt-service coverage ratio greater than 1.00 times indicates an excess of net operating income over the debt-service payments.

Past Due Mortgage Loans by Portfolio Segment

The Company has a high-quality, well-performing mortgage loan portfolio, with over 99% of all mortgage loans classified as performing at both September 30, 2023 and December 31, 2022. Delinquency is defined consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days; and agricultural mortgage loans — 90 days.

The aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at:

	September 30, 2023								December 31, 2022
	Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total
	(In millions)
Current	$	13,290	$	4,439	$	4,890	$	22,619	$	13,574	$	4,346	$	5,041	$	22,961
30-59 days past due	—		—		76		76		—		—		11		11
60-89 days past due	—		—		30		30		—		—		16		16
90-179 days past due	—		—		23		23		—		3		31		34
180+ days past due	17		22		32		71		—		16		17		33
Total	$	13,307	$	4,461	$	5,051	$	22,819	$	13,574	$	4,365	$	5,116	$	23,055

Mortgage Loans in Nonaccrual Status by Portfolio Segment

Mortgage loans are placed in a nonaccrual status if there are concerns regarding collectability of future payments or the loan is past due, unless the past due loan is well collateralized.

The amortized cost of mortgage loans in a nonaccrual status by portfolio segment was as follows at:

	Commercial		Agricultural		Residential (1)		Total
	(In millions)
September 30, 2023	$	17	$	—	$	85	$	102
December 31, 2022	$	11	$	3	$	64	$	78

_______________

(1)The Company had no mortgage loans in nonaccrual status for which there was no related allowance for credit losses at both September 30, 2023 and December 31, 2022.

Current period investment income on mortgage loans in nonaccrual status was $1 million for both the nine months ended September 30, 2023 and 2022

Other Invested Assets

Over 75% of other invested assets is comprised of freestanding derivatives with positive estimated fair values. See Note 7 for information about freestanding derivatives with positive estimated fair values. Other invested assets also includes the Company’s investment in company-owned life insurance, Federal Home Loan Bank (“FHLB”) stock, tax credit and renewable energy partnerships and leveraged leases.

Net Unrealized Investment Gains (Losses)

Unrealized investment gains (losses) on fixed maturity securities and the effect on future policy benefits, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI.

The components of net unrealized investment gains (losses), included in AOCI, were as follows at:

	September 30, 2023		December 31, 2022
	(In millions)
Fixed maturity securities	$	(10,918)	$	(8,760)
Derivatives	509		638
Other	(8)		3
Subtotal	(10,417)		(8,119)
Amounts allocated from:
Future policy benefits	1,290		917
Deferred income tax benefit (expense)	1,917		1,512
Net unrealized investment gains (losses)	$	(7,210)	$	(5,690)

The changes in net unrealized investment gains (losses) were as follows:

	Nine Months Ended September 30, 2023
	(In millions)
Balance at December 31, 2022	$	(5,690)
Unrealized investment gains (losses) during the period	(2,298)
Unrealized investment gains (losses) relating to:
Future policy benefits	373
Deferred income tax benefit (expense)	405
Balance at September 30, 2023	$	(7,210)
Change in net unrealized investment gains (losses)	$	(1,520)

Concentrations of Credit Risk

There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at both September 30, 2023 and December 31, 2022.

Securities Lending

Elements of the securities lending program are presented below at:

	September 30, 2023		December 31, 2022
	(In millions)
Securities on loan: (1)
Amortized cost	$	3,620	$	3,995
Estimated fair value	$	3,093	$	3,638
Cash collateral received from counterparties (2)	$	3,171	$	3,731
Reinvestment portfolio — estimated fair value	$	3,051	$	3,603

_______________

(1)Included in fixed maturity securities.

(2)Included in payables for collateral under securities loaned and other transactions.

The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at:

	September 30, 2023								December 31, 2022
	Open (1)		1 Month or Less		1 to 6 Months		Total		Open (1)		1 Month or Less		1 to 6 Months		Total
	(In millions)
U.S. government and agency	$	714	$	1,064	$	996	$	2,774	$	640	$	1,527	$	984	$	3,151
U.S. corporate	—		253		27		280		2		410		—		412
Foreign corporate	—		99		8		107		—		152		—		152
Foreign government	—		4		6		10		—		16		—		16
Total	$	714	$	1,420	$	1,037	$	3,171	$	642	$	2,105	$	984	$	3,731

_______________

(1)The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral.

If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized in normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at September 30, 2023 was $699 million, primarily comprised of U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement.

The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including agency RMBS, ABS, U.S. government and agency securities, U.S. and foreign corporate securities, non-agency RMBS and CMBS) with 58% invested in U.S. government and agency securities, agency RMBS and cash and cash equivalents at September 30, 2023. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company.

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at:

	September 30, 2023		December 31, 2022
	(In millions)
Invested assets on deposit (regulatory deposits) (1)	$	7,863	$	7,999
Invested assets held in trust (reinsurance agreements) (2)	5,536		5,621
Invested assets pledged as collateral (3)	14,260		13,920
Total invested assets on deposit, held in trust and pledged as collateral	$	27,659	$	27,540

_______________

(1)The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $94 million and $21 million of the assets on deposit represents restricted cash and cash equivalents at September 30, 2023 and December 31, 2022, respectively.

(2)The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $228 million and $240 million of the assets held in trust balance represents restricted cash and cash equivalents at September 30, 2023 and December 31, 2022, respectively.

(3)The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report) and derivative transactions (see Note 7).

See “— Securities Lending” for information regarding securities on loan. In addition, the Company’s investment in FHLB common stock, which is considered restricted until redeemed by the issuer, was $247 million and $201 million at redemption value at September 30, 2023 and December 31, 2022, respectively.

Variable Interest Entities

A variable interest entity (“VIE”) is a legal entity that does not have sufficient equity at risk to finance its activities or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity.

The Company enters into various arrangements with VIEs in the normal course of business and has invested in legal entities that are VIEs. VIEs are consolidated when it is determined that the Company is the primary beneficiary. A primary beneficiary is the variable interest holder in a VIE with both (i) the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In addition, the evaluation of whether a legal entity is a VIE and if the Company is a primary beneficiary includes a review of the capital structure of the VIE, the related contractual relationships and terms, the nature of the operations and purpose of the VIE, the nature of the VIE interests issued and the Company’s involvement with the entity.

There were no material VIEs for which the Company has concluded that it is the primary beneficiary at either September 30, 2023 or December 31, 2022.

The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at:

	September 30, 2023				December 31, 2022
	Carrying Amount		Maximum Exposure to Loss		Carrying Amount		Maximum Exposure to Loss
	(In millions)
Fixed maturity securities	$	14,940	$	16,780	$	15,896	$	17,471
Limited partnerships and LLCs	4,358		5,544		4,136		5,491
Total	$	19,298	$	22,324	$	20,032	$	22,962

The Company’s investments in unconsolidated VIEs are described below.

Fixed Maturity Securities

The Company invests in U.S. corporate bonds, foreign corporate bonds and Structured Securities issued by VIEs. The Company is not obligated to provide any financial or other support to these VIEs, other than the original investment. The Company’s involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer, or investment manager, which are generally viewed as having the power to direct the activities that most significantly impact the economic performance of the VIE, nor does the Company function in any of these roles. The Company does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity; as a result, the Company has determined it is not the primary beneficiary, or consolidator, of the VIE. The Company’s maximum exposure to loss on these fixed maturity securities is limited to the amortized cost of these investments. See “— Fixed Maturity Securities Available-for-sale” for information on these securities.

Limited Partnerships and LLCs

The Company holds investments in certain limited partnerships and LLCs which are VIEs. These ventures include limited partnerships, LLCs, private equity funds, and, to a lesser extent, tax credit and renewable energy partnerships. The Company is not considered the primary beneficiary, or consolidator, when its involvement takes the form of a limited partner interest and is restricted to a role of a passive investor, as a limited partner’s interest does not provide the Company with any substantive kick-out or participating rights, nor does it provide the Company with the power to direct the activities of the fund. The Company’s maximum exposure to loss on these investments is limited to: (i) the amount invested in debt or equity of the VIE and (ii) commitments to the VIE, as described in Note 13.

Net Investment Income

The components of net investment income were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Investment income:
Fixed maturity securities	$	897	$	787	$	2,602	$	2,247
Equity securities	1		1		2		2
Mortgage loans	240		208		716		616
Policy loans	17		16		50		48
Limited partnerships and LLCs (1)	53		(106)		129		257
Cash, cash equivalents and short-term investments	61		22		166		29
Other	24		20		66		52
Total investment income	1,293		948		3,731		3,251
Less: Investment expenses	91		71		274		162
Net investment income	$	1,202	$	877	$	3,457	$	3,089

_______________

(1)Includes net investment income pertaining to other limited partnership interests of $64 million and $156 million for the three months and nine months ended September 30, 2023, respectively, and ($127) million and $178 million for the three months and nine months ended September 30, 2022, respectively.

Net Investment Gains (Losses)

Components of Net Investment Gains (Losses)

The components of net investment gains (losses) were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Fixed maturity securities	$	(54)	$	(38)	$	(185)	$	(140)
Equity securities	(1)		(2)		(2)		(14)
Mortgage loans	3		2		(24)		(1)
Limited partnerships and LLCs	—		(4)		—		(21)
Other	(1)		(3)		(2)		(3)
Total net investment gains (losses)	$	(53)	$	(45)	$	(213)	$	(179)

Gains (losses) from foreign currency transactions included within net investment gains (losses) were ($2) million for both the three months and nine months ended September 30, 2023, and ($1) million and ($22) million for the three months and nine months ended September 30, 2022, respectively.

Sales or Disposals of Fixed Maturity Securities

Investment gains and losses on sales of securities are determined on a specific identification basis. Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Proceeds	$	494	$	1,146	$	1,771	$	5,261
Gross investment gains	$	1	$	1	$	12	$	47
Gross investment losses	(44)		(38)		(173)		(181)
Net investment gains (losses)	$	(43)	$	(37)	$	(161)	$	(134)

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Derivatives

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

7. Derivatives

Accounting for Derivatives

See Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report for a description of the Company’s accounting policies for derivatives and the fair value hierarchy for derivatives.

Types of Derivative Instruments and Derivative Strategies

The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to minimize its exposure to various market risks. Commonly used derivative instruments include, but are not necessarily limited to:

•Interest rate derivatives: swaps, floors, caps, swaptions and forwards;

•Foreign currency exchange rate derivatives: forwards and swaps;

•Equity market derivatives: options, total return swaps and hybrid options; and

•Credit derivatives: single and index reference credit default swaps and swaptions.

For detailed information on these contracts and the related strategies, see Note 7 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report.

Primary Risks Managed by Derivatives

The primary underlying risk exposure, gross notional amount and estimated fair value of derivatives, excluding embedded derivatives, held were as follows at:

		September 30, 2023						December 31, 2022
	Primary Underlying Risk Exposure	Gross Notional Amount		Estimated Fair Value				Gross Notional Amount		Estimated Fair Value
				Assets		Liabilities				Assets		Liabilities
		(In millions)
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate forwards	Interest rate	$	—	$	—	$	—	$	60	$	—	$	12
Foreign currency swaps	Foreign currency exchange rate	3,942		472		14		4,026		596		8
Total qualifying hedges		3,942		472		14		4,086		596		20
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate swaps	Interest rate	30,527		168		280		3,145		98		46
Interest rate floors	Interest rate	3,000		2		1		3,250		12		3
Interest rate caps	Interest rate	5,800		80		27		6,350		137		43
Interest rate options	Interest rate	31,080		19		303		28,688		22		232
Interest rate forwards	Interest rate	16,441		178		2,867		18,168		35		2,466
Foreign currency swaps	Foreign currency exchange rate	771		125		—		822		148		—
Foreign currency forwards	Foreign currency exchange rate	480		5		1		487		1		10
Credit default swaps — written	Credit	1,530		21		1		1,757		18		2
Credit default swaptions	Credit	—		—		—		100		—		—
Equity index options	Equity market	16,215		508		436		17,229		697		351
Equity total return swaps	Equity market	56,332		931		1,061		32,909		520		747
Hybrid options	Equity market	630		7		—		—		—		—
Total non-designated or non-qualifying derivatives		162,806		2,044		4,977		112,905		1,688		3,900
Total		$	166,748	$	2,516	$	4,991	$	116,991	$	2,284	$	3,920

Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both September 30, 2023 and December 31, 2022. The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and generally do not qualify for hedge accounting because they do not meet the criteria required under portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities and generally do not qualify for hedge accounting because they do not meet the criteria of being “highly effective” as outlined in Accounting Standards Codification 815 — Derivatives and Hedging; (iii) derivatives that economically hedge MRBs that do not qualify for hedge accounting because the changes in estimated fair value of the MRBs are already recorded in net income; and (iv) written credit default swaps that are used to create synthetic credit investments and that do not qualify for hedge accounting because they do not involve a hedging relationship.

The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items reported in net derivative gains (losses) were as follows:

	Net Derivative Gains (Losses) Recognized for Derivatives		Net Derivative Gains (Losses) Recognized for Hedged Items		Net Investment Income		Amount of Gains (Losses) Deferred in AOCI
	(In millions)
Three Months Ended September 30, 2023
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate	$	—	$	—	$	1	$	(2)
Foreign currency exchange rate	1		(1)		13		(31)
Total cash flow hedges	1		(1)		14		(33)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	(1,481)		—		—		—
Foreign currency exchange rate	21		(16)		—		—
Credit	3		—		—		—
Equity market	(280)		—		—		—
Embedded	913		—		—		—
Total non-qualifying hedges	(824)		(16)		—		—
Total	$	(823)	$	(17)	$	14	$	(33)
Three Months Ended September 30, 2022
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate	$	—	$	—	$	1	$	(8)
Foreign currency exchange rate	8		(6)		17		341
Total cash flow hedges	8		(6)		18		333
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	(1,233)		—		—		—
Foreign currency exchange rate	99		(23)		—		—
Credit	5		—		—		—
Equity market	40		—		—		—
Embedded	518		—		—		—
Total non-qualifying hedges	(571)		(23)		—		—
Total	$	(563)	$	(29)	$	18	$	333

	Net Derivative Gains (Losses) Recognized for Derivatives		Net Derivative Gains (Losses) Recognized for Hedged Items		Net Investment Income		Amount of Gains (Losses) Deferred in AOCI
	(In millions)
Nine Months Ended September 30, 2023
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate	$	(2)	$	—	$	3	$	(1)
Foreign currency exchange rate	5		(6)		40		(122)
Total cash flow hedges	3		(6)		43		(123)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	(1,422)		—		—		—
Foreign currency exchange rate	25		(12)		—		—
Credit	22		—		—		—
Equity market	44		—		—		—
Embedded	(1,880)		—		—		—
Total non-qualifying hedges	(3,211)		(12)		—		—
Total	$	(3,208)	$	(18)	$	43	$	(123)
Nine Months Ended September 30, 2022
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate	$	4	$	—	$	3	$	(49)
Foreign currency exchange rate	9		(8)		42		666
Total cash flow hedges	13		(8)		45		617
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	(3,671)		—		—		—
Foreign currency exchange rate	212		(62)		—		—
Credit	(27)		—		—		—
Equity market	768		—		—		—
Embedded	4,106		—		—		—
Total non-qualifying hedges	1,388		(62)		—		—
Total	$	1,401	$	(70)	$	45	$	617

At September 30, 2023, the Company held no qualified derivatives hedging exposure to future cash flows for forecasted asset purchases. At December 31, 2022, the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions was less than one year.

At September 30, 2023 and December 31, 2022, the balance in AOCI associated with cash flow hedges was $509 million and $638 million, respectively.

Credit Derivatives

In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation.

The estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps were as follows at:

	September 30, 2023					December 31, 2022
Rating Agency Designation of Referenced Credit Obligations (1)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)
	(Dollars in millions)
Aaa/Aa/A	$	7	$	544	1.5	$	7	$	544	2.2
Baa	12		958		5.2	8		1,185		5.0
Ba	2		24		3.2	2		24		4.0
Caa and Lower	(1)		4		2.2	(1)		4		3.0
Total	$	20	$	1,530	3.8	$	16	$	1,757	4.1

_______________

(1)The Company has written credit protection on both single name and index references. The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s, S&P and Fitch. If no rating is available from a rating agency, then an internally developed rating is used.

(2)The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts.

Counterparty Credit Risk

The Company may be exposed to credit-related losses in the event of counterparty nonperformance on derivative instruments. Generally, the credit exposure is the fair value at the reporting date less any collateral received from the counterparty.

The Company manages its credit risk by: (i) entering into derivative transactions with creditworthy counterparties governed by master netting agreements; (ii) trading through regulated exchanges and central clearing counterparties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review.

See Note 8 for a description of the impact of credit risk on the valuation of derivatives.

The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:

			Gross Amounts Not Offset on the Consolidated Balance Sheets
	Gross Amount Recognized		Financial Instruments (1)		Collateral Received/Pledged (2)		Net Amount		Securities Collateral Received/Pledged (3)		Net Amount After Securities Collateral
	(In millions)
September 30, 2023
Derivative assets	$	2,735	$	(2,028)	$	(688)	$	19	$	(6)	$	13
Derivative liabilities	$	5,214	$	(2,028)	$	—	$	3,186	$	(3,186)	$	—
December 31, 2022
Derivative assets	$	2,308	$	(1,659)	$	(640)	$	9	$	(6)	$	3
Derivative liabilities	$	3,919	$	(1,659)	$	(7)	$	2,253	$	(2,251)	$	2

_______________

(1)Represents amounts subject to an enforceable master netting agreement or similar agreement.

(2)The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement.

(3)Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received.

The Company’s collateral arrangements generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the amount owed by that counterparty reaches a minimum transfer amount. Certain of these arrangements also include credit-contingent provisions which permit the party with positive fair value to terminate the derivative at the current fair value or demand immediate full collateralization from the party in a net liability position, in the event that the financial strength or credit rating of the party in a net liability position falls below a certain level.

The aggregate estimated fair values of derivatives in a net liability position containing such credit-contingent provisions and the aggregate estimated fair value of assets posted as collateral for such instruments were as follows at:

	September 30, 2023		December 31, 2022
	(In millions)
Estimated fair value of derivatives in a net liability position (1)	$	3,186	$	2,260
Estimated fair value of collateral provided (2):
Fixed maturity securities	$	5,567	$	4,894

_______________

(1)After taking into consideration the existence of netting agreements.

(2)Substantially all of the Company’s collateral arrangements provide for daily posting of collateral for the full value of the derivative contract. As a result, if the credit-contingent provisions of derivative contracts in a net liability position were triggered, minimal additional assets would be required to be posted as collateral or needed to settle the instruments immediately. Additionally, the Company is required to pledge initial margin for certain new over-the-counter (“OTC”) bilateral contracts between two counterparties (“OTC-bilateral”) derivative transactions to third-party custodians.

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Fair Value

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value

8. Fair Value

Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts.

Recurring Fair Value Measurements

The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented in the tables below. Investments that do not have a readily determinable fair value and are measured at net asset value (or equivalent) as a practical expedient to estimated fair value are excluded from the fair value hierarchy.

	September 30, 2023
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	32,086	$	824	$	32,910
Foreign corporate	—		10,362		316		10,678
U.S. government and agency	3,658		4,144		—		7,802
RMBS	—		7,041		10		7,051
CMBS	—		6,272		36		6,308
ABS	—		5,815		299		6,114
State and political subdivision	—		3,604		—		3,604
Foreign government	—		933		33		966
Total fixed maturity securities	3,658		70,257		1,518		75,433
Equity securities	39		26		25		90
Short-term investments	675		328		—		1,003
Derivative assets: (1)
Interest rate	—		447		—		447
Foreign currency exchange rate	—		589		13		602
Credit	—		14		7		21
Equity market	—		1,439		7		1,446
Total derivative assets	—		2,489		27		2,516
Market risk benefit assets	—		—		694		694
Separate account assets	16		82,659		—		82,675
Total assets	$	4,388	$	155,759	$	2,264	$	162,411
Liabilities
Market risk benefit liabilities	$	—	$	—	$	8,830	$	8,830
Derivative liabilities: (1)
Interest rate	—		3,478		—		3,478
Foreign currency exchange rate	—		15		—		15
Credit	—		—		1		1
Equity market	—		1,497		—		1,497
Total derivative liabilities	—		4,990		1		4,991
Embedded derivatives on index-linked annuities (2)	—		—		6,031		6,031
Total liabilities	$	—	$	4,990	$	14,862	$	19,852

	December 31, 2022
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	31,418	$	1,189	$	32,607
Foreign corporate	—		9,978		598		10,576
U.S. government and agency	3,566		4,450		—		8,016
RMBS	—		7,514		14		7,528
CMBS	—		6,578		33		6,611
ABS	—		5,041		318		5,359
State and political subdivision	—		3,799		—		3,799
Foreign government	—		1,043		38		1,081
Total fixed maturity securities	3,566		69,821		2,190		75,577
Equity securities	35		27		27		89
Short-term investments	722		359		—		1,081
Derivative assets: (1)
Interest rate	—		304		—		304
Foreign currency exchange rate	—		716		29		745
Credit	—		10		8		18
Equity market	—		1,217		—		1,217
Total derivative assets	—		2,247		37		2,284
Market risk benefit assets	—		—		483		483
Separate account assets	29		84,936		—		84,965
Total assets	$	4,352	$	157,390	$	2,737	$	164,479
Liabilities
Market risk benefit liabilities	$	—	$	—	$	10,389	$	10,389
Derivative liabilities: (1)
Interest rate	—		2,802		—		2,802
Foreign currency exchange rate	—		18		—		18
Credit	—		—		2		2
Equity market	—		1,098		—		1,098
Total derivative liabilities	—		3,918		2		3,920
Embedded derivatives on index-linked annuities (2)	—		—		3,932		3,932
Total liabilities	$	—	$	3,918	$	14,323	$	18,241

_______________

(1)Derivative assets are reported in other invested assets and derivative liabilities are reported in other liabilities. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets.

(2)Embedded derivative liabilities on index-linked annuities are reported in policyholder account balances

Valuation Controls and Procedures

The Company monitors and provides oversight of valuation controls and policies for securities, mortgage loans and derivatives, which are primarily executed by its valuation service providers. The valuation methodologies used to determine fair values prioritize the use of observable market prices and market-based parameters and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. The valuation methodologies for securities, mortgage loans and derivatives are reviewed on an ongoing basis and revised when necessary. In addition, the Chief Accounting Officer periodically reports to the Audit Committee of Brighthouse Financial’s Board of Directors regarding compliance with fair value accounting standards.

The fair value of financial assets and financial liabilities is based on quoted market prices, where available. Prices received are assessed to determine if they represent a reasonable estimate of fair value. Several controls are performed, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. Independent non-binding broker quotes, also referred to herein as “consensus pricing,” are used for a non-significant portion of the portfolio. Prices received from independent brokers are assessed to determine if they represent a reasonable estimate of fair value by considering such pricing relative to the current market dynamics and current pricing for similar financial instruments.

A formal process is also applied to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained. If obtaining an independent non-binding broker quotation is unsuccessful, the last available price will be used.

Additional controls are performed, such as, balance sheet analytics to assess reasonableness of period-to-period pricing changes, including any price adjustments. Price adjustments are applied if prices or quotes received from independent pricing services or brokers are not considered reflective of market activity or representative of estimated fair value. The Company did not have significant price adjustments during the nine months ended September 30, 2023.

Determination of Fair Value

Fixed Maturity Securities

The fair values for actively traded marketable bonds, primarily U.S. government and agency securities, are determined using the quoted market prices and are classified as Level 1 assets. For fixed maturity securities classified as Level 2 assets, fair values are determined using either a market or income approach and are valued based on a variety of observable inputs as described below.

U.S. corporate and foreign corporate securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark yields, spreads off benchmark yields, new issuances, issuer rating, trades of identical or comparable securities, or duration. Privately-placed securities are valued using the additional key inputs: market yield curve, call provisions, observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer, and delta spread adjustments to reflect specific credit-related issues.

U.S. government and agency, state and political subdivision and foreign government securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark U.S. Treasury yield or other yields, spread off the U.S. Treasury yield curve for the identical security, issuer ratings and issuer spreads, broker-dealer quotes, and comparable securities that are actively traded.

Structured Securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, ratings, geographic region, weighted average coupon and weighted average maturity, average delinquency rates and debt-service coverage ratios. Other issuance-specific information is also used, including, but not limited to, collateral type, structure of the security, vintage of the loans, payment terms of the underlying asset, payment priority within tranche, and deal performance.

Equity Securities and Short-term Investments

The fair value for actively traded equity securities and short-term investments are determined using quoted market prices and are classified as Level 1 assets. For financial instruments classified as Level 2 assets, fair values are determined using a market approach and are valued based on a variety of observable inputs as described below.

Equity securities and short-term investments: Fair value is determined using third-party commercial pricing services, with the primary input being quoted prices in markets that are not active.

Derivatives

Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the OTC market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are OTC-bilateral.

The fair values for exchange-traded derivatives are determined using the quoted market prices and are classified as Level 1 assets. For OTC-bilateral derivatives and OTC-cleared derivatives classified as Level 2 assets or liabilities, fair values are determined using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models which are based on market standard valuation methodologies and a variety of observable inputs.

The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments.

Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income.

The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period.

Market Risk Benefits

MRBs principally include guaranteed minimum benefits on variable annuity contracts including benefits reinsured related to these guarantees.

The estimated fair value of variable annuity guarantees accounted for as MRBs is determined based on the present value of projected future benefits less the present value of projected future fees attributable to the guarantees. At policy inception, the Company determines an attributed fee ratio by solving for a percentage of projected future rider fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. To the extent the rider fees are insufficient, the Company may also include fees related to mortality and expense charges in the attributed fee ratio, provided the total fees included in the calculation do not exceed total contract fees and assessments collected from the contract holder. Any additional fees not included in the attributed fee ratio are considered revenue and reported in universal life and investment-type product policy fees. The attributed fee ratio is not updated in subsequent periods.

The Company updates the estimated fair value of variable annuity guarantees in subsequent periods by projecting future benefits using capital markets inputs and actuarial assumptions including expectations of policyholder behavior. A risk neutral valuation methodology is used to project the cash flows from the guarantees under multiple capital markets scenarios. The reported estimated fair value is then determined by taking the present value of these cash flows using a discount rate that incorporates a spread over the risk-free rate to reflect the Company’s nonperformance risk and adding a risk margin.

The valuation of MRBs includes an adjustment for the risk that the Company fails to satisfy its obligations, which is referred to as nonperformance risk. The nonperformance risk adjustment is captured as an additional spread applied to the risk-free rate in determining the rate to discount the cash flows of the liability. The spread over the risk-free rate is based on the Company’s creditworthiness taking into consideration publicly available information relating to spreads in the secondary market for Brighthouse Financial’s debt. These observable spreads are then adjusted, as necessary, to reflect the financial strength ratings of the issuing insurance subsidiaries as compared to the credit rating of Brighthouse Financial.

Risk margins are established to capture the non-capital markets risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties in certain actuarial assumptions. The establishment of risk margins requires the use of significant actuarial judgment, including assumptions of the amount needed to cover the guarantees.

Actuarial assumptions are reviewed at least annually, and if they change significantly, the estimated fair value is adjusted through net income. Capital market inputs used in the measurement of variable annuity guarantees are updated quarterly through net income, except for the change attributable to the Company’s nonperformance risk, which is reported in OCI.

Embedded Derivatives

Embedded derivatives include crediting rates associated with index-linked annuity contracts. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income.

The crediting rates associated with these features are embedded derivatives which are measured at estimated fair value separately from the host fixed annuity contract. These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets.

The estimated fair value of crediting rates associated with index-linked annuities is determined using a combination of an option pricing model and an option-budget approach. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk.

Actuarial assumptions including policyholder behavior and expectations for renewals at the end of the term period are reviewed at least annually, and if they change significantly, the estimated fair value is adjusted through net income. Capital market inputs used in the measurement of crediting rate embedded derivatives are updated quarterly through net income.

Transfers Into or Out of Level 3:

Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable.

Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

Certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows at:

					September 30, 2023			December 31, 2022			Impact of Increase in Input on Estimated Fair Value
	Valuation Techniques		Significant Unobservable Inputs		Range			Range
Market Risk Benefits
Variable annuity guaranteed minimum benefits	•	Option pricing techniques	•	Mortality rates	0.04%	-	12.90%	0.04%	-	12.90%	Decrease (1)
			•	Lapse rates	1.00%	-	22.80%	1.00%	-	24.11%	Decrease (2)
			•	Utilization rates	0.00%	-	25.00%	0.00%	-	25.00%	Increase (3)
			•	Withdrawal rates	0.00%	-	10.00%	0.00%	-	10.00%	(4)
			•	Long-term equity volatilities	15.27%	-	23.76%	19.99%	-	28.45%	Increase (5)
			•	Nonperformance risk spread	0.85%	-	1.83%	(2.73)%	-	4.52%	Decrease (6)
Embedded Derivatives
Index-linked annuity crediting rates	•	Option pricing techniques	•	Mortality rates	0.03%	-	9.24%	0.03%	-	9.24%	Decrease (1)
			•	Lapse rates	1.00%	-	62.30%	1.00%	-	62.30%	Decrease (2)
			•	Withdrawal rates	0.50%	-	9.00%	0.50%	-	9.00%	(4)
			•	Nonperformance risk spread	0.58%	-	1.77%	0.00%	-	1.98%	Decrease (6)

_______________

(1)Mortality rates vary by age and by demographic characteristics such as gender. The range shown reflects the mortality rate for policyholders between 35 and 90 years old. Mortality rate assumptions are set based on company experience and include an assumption for mortality improvement.

(2)The lapse rate range reflects base lapse rates for major product categories for duration 1-20. Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. For variable annuity guarantees, a dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in-the-money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies.

(3)The utilization rate assumption for variable annuity guarantees estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible in a given year. The range shown represents the floor and cap of the GMIB dynamic election rates across varying levels of in-the-money. For lifetime withdrawal guarantee riders, the assumption is that everyone will begin withdrawals once account value reaches zero which is equivalent to a 100% utilization rate. Utilization rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder.

(4)The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For variable annuity GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For variable annuity GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.

(5)Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing MRBs.

(6)Nonperformance risk spread varies by duration. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the MRB or embedded derivative.

The Company does not develop unobservable inputs used in measuring fair value for all other assets and liabilities classified within Level 3; therefore, these are not included in the table above. The other Level 3 assets and liabilities primarily included fixed maturity securities and derivatives. For fixed maturity securities valued based on non-binding broker quotes, an increase (decrease) in credit spreads would result in a higher (lower) fair value. For derivatives valued based on third-party pricing models, an increase (decrease) in credit spreads would generally result in a higher (lower) fair value.

The changes in assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (excluding MRBs disclosed in Note 4) were summarized as follows:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	Corporate (1)		Structured Securities		Foreign Government		Equity Securities		Short-term Investments		Net Derivatives (2)		Embedded Derivatives on Index-Linked Annuities
	(In millions)
Three Months Ended September 30, 2023
Balance, beginning of period	$	1,931	$	371	$	38	$	25	$	—	$	27	$	(6,886)
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	(9)		—		—		—		—		2		913
Total realized/unrealized gains (losses) included in AOCI	(19)		(2)		(1)		—		—		(3)		—
Purchases (5)	32		17		—		—		—		—		—
Sales (5)	(56)		(11)		(1)		—		—		—		—
Issuances (5)	—		—		—		—		—		—		—
Settlements (5)	—		—		—		—		—		—		(58)
Transfers into Level 3 (6)	45		12		—		—		—		—		—
Transfers out of Level 3 (6)	(784)		(42)		(3)		—		—		—		—
Balance, end of period	$	1,140	$	345	$	33	$	25	$	—	$	26	$	(6,031)
Three Months Ended September 30, 2022
Balance, beginning of period	$	1,710	$	345	$	40	$	27	$	—	$	38	$	(2,831)
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	—		—		—		1		—		3		518
Total realized/unrealized gains (losses) included in AOCI	(108)		(11)		(4)		—		—		21		—
Purchases (5)	278		125		—		—		—		—		—
Sales (5)	(22)		(1)		(1)		—		—		—		—
Issuances (5)	—		—		—		—		—		—		—
Settlements (5)	—		—		—		—		—		—		(29)
Transfers into Level 3 (6)	16		19		—		—		—		—		—
Transfers out of Level 3 (6)	(319)		(138)		—		—		—		—		—
Balance, end of period	$	1,555	$	339	$	35	$	28	$	—	$	62	$	(2,342)
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2023 (7)	$	(9)	$	—	$	—	$	1	$	—	$	3	$	785
Changes in unrealized gains (losses) included in OCI for the instruments still held as of September 30, 2023 (7)	$	(25)	$	(3)	$	(1)	$	—	$	—	$	(3)	$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2022 (7)	$	—	$	—	$	—	$	1	$	—	$	3	$	461
Changes in unrealized gains (losses) included in OCI for the instruments still held as of September 30, 2022 (7)	$	(109)	$	(11)	$	(4)	$	—	$	—	$	21	$	—

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	Corporate (1)		Structured Securities		Foreign Government		Equity Securities		Short-term Investments		Net Derivatives (2)		Embedded Derivatives on Index-Linked Annuities
	(In millions)
Nine Months Ended September 30, 2023
Balance, beginning of period	$	1,787	$	365	$	38	$	27	$	—	$	35	$	(3,932)
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	(12)		—		—		(3)		—		(3)		(1,880)
Total realized/unrealized gains (losses) included in AOCI	(11)		(2)		—		—		—		(3)		—
Purchases (5)	119		45		—		1		—		9		—
Sales (5)	(126)		(17)		(2)		—		—		—		—
Issuances (5)	—		—		—		—		—		—		—
Settlements (5)	—		—		—		—		—		—		(219)
Transfers into Level 3 (6)	101		10		—		—		—		—		—
Transfers out of Level 3 (6)	(718)		(56)		(3)		—		—		(12)		—
Balance, end of period	$	1,140	$	345	$	33	$	25	$	—	$	26	$	(6,031)
Nine Months Ended September 30, 2022
Balance, beginning of period	$	1,399	$	220	$	26	$	13	$	2	$	36	$	(6,641)
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	(6)		—		—		1		—		(11)		4,106
Total realized/unrealized gains (losses) included in AOCI	(286)		(23)		(13)		—		—		36		—
Purchases (5)	760		230		5		14		—		1		—
Sales (5)	(159)		(12)		(2)		—		(2)		—		—
Issuances (5)	—		—		—		—		—		—		—
Settlements (5)	—		—		—		—		—		—		193
Transfers into Level 3 (6)	31		25		19		—		—		—		—
Transfers out of Level 3 (6)	(184)		(101)		—		—		—		—		—
Balance, end of period	$	1,555	$	339	$	35	$	28	$	—	$	62	$	(2,342)
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2023 (7)	$	(11)	$	—	$	—	$	(2)	$	—	$	(2)	$	(2,183)
Changes in unrealized gains (losses) included in OCI for the instruments still held as of September 30, 2023 (7)	$	(20)	$	(3)	$	—	$	—	$	—	$	(3)	$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2022 (7)	$	—	$	—	$	—	$	1	$	—	$	(4)	$	3,904
Changes in unrealized gains (losses) included in OCI for the instruments still held as of September 30, 2022 (7)	$	(288)	$	(23)	$	(13)	$	—	$	—	$	36	$	—

_______________

(1)Comprised of U.S. and foreign corporate securities.

(2)Freestanding derivative assets and liabilities are reported net for purposes of the rollforward.

(3)Amortization of premium/accretion of discount is included in net investment income. Changes in the allowance for credit losses and direct write-offs are charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(4)Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.

(5)Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements.

(6)Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and out of Level 3 in the same period are excluded from the rollforward.

(7)Changes in unrealized gains (losses) included in net income (loss) for fixed maturities are reported in either net investment income or net investment gains (losses). Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

Fair Value of Financial Instruments Carried at Other Than Fair Value

The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income and payables for collateral under securities loaned and other transactions. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2, approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the tables below are not considered financial instruments subject to this disclosure.

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:

	September 30, 2023
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	22,682	$	—	$	—	$	20,010	$	20,010
Policy loans	$	1,311	$	—	$	507	$	858	$	1,365
Other invested assets	$	259	$	—	$	247	$	12	$	259
Premiums, reinsurance and other receivables	$	7,134	$	—	$	64	$	7,141	$	7,205
Liabilities
Policyholder account balances	$	31,509	$	—	$	—	$	30,470	$	30,470
Long-term debt	$	3,157	$	—	$	2,591	$	—	$	2,591
Other liabilities	$	1,124	$	—	$	436	$	688	$	1,124
Separate account liabilities	$	1,063	$	—	$	1,063	$	—	$	1,063

	December 31, 2022
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	22,936	$	—	$	—	$	20,816	$	20,816
Policy loans	$	1,282	$	—	$	515	$	878	$	1,393
Other invested assets	$	213	$	—	$	201	$	12	$	213
Premiums, reinsurance and other receivables	$	6,080	$	—	$	89	$	6,141	$	6,230
Liabilities
Policyholder account balances	$	31,887	$	—	$	—	$	30,942	$	30,942
Long-term debt	$	3,156	$	—	$	2,703	$	—	$	2,703
Other liabilities	$	943	$	—	$	248	$	695	$	943
Separate account liabilities	$	1,024	$	—	$	1,024	$	—	$	1,024

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Long-term Debt

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Long-term Debt

9. Long-term Debt

Repurchase Facility

In July 2023, Brighthouse Life Insurance Company entered into an additional secured committed repurchase facility (the “Repurchase Facility”) under which Brighthouse Life Insurance Company may enter into repurchase transactions in an aggregate amount up to $500 million for a term of up to two years, which is available to Brighthouse Life Insurance Company under certain market conditions. Under the Repurchase Facility, Brighthouse Life Insurance Company may sell certain eligible securities at a purchase price based on the market value of the securities less an applicable margin based on the types of securities sold, with a concurrent agreement to repurchase such securities at a predetermined future date (up to three months) and at a price which represents the original purchase price plus interest. At September 30, 2023, there were no borrowings under the Repurchase Facility.

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Equity

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Equity

10. Equity

Preferred Stock

Preferred stock shares authorized, issued and outstanding were as follows at both September 30, 2023 and December 31, 2022:

	Shares Authorized	Shares Issued	Shares Outstanding
6.600% Non-Cumulative Preferred Stock, Series A	17,000	17,000	17,000
6.750% Non-Cumulative Preferred Stock, Series B	16,100	16,100	16,100
5.375% Non-Cumulative Preferred Stock, Series C	23,000	23,000	23,000
4.625% Non-Cumulative Preferred Stock, Series D	14,000	14,000	14,000
Not designated	99,929,900	—	—
Total	100,000,000	70,100	70,100

The per share and aggregate dividends declared for BHF’s preferred stock by series were as follows:

	Three Months Ended September 30,								Nine Months Ended September 30,
	2023				2022				2023				2022
Series	Per Share		Aggregate		Per Share		Aggregate		Per Share		Aggregate		Per Share		Aggregate
	(In millions, except per share data)								(In millions, except per share data)
A	$	412.50	$	7	$	412.50	$	7	$	1,237.50	$	21	$	1,237.50	$	21
B	$	421.88	7		$	421.88	7		$	1,265.64	21		$	1,265.64	21
C	$	335.94	8		$	335.94	7		$	1,007.82	23		$	1,007.82	23
D	$	289.06	4		$	289.06	4		$	867.18	12		$	973.17	13
Total			$	26			$	25			$	77			$	78

Common Stock Repurchase Program

During the nine months ended September 30, 2023 and 2022, BHF repurchased 3,968,138 and 8,194,191 shares, respectively, of its common stock through open market purchases pursuant to 10b5-1 plans for $190 million and $395 million, respectively. At September 30, 2023, BHF had $104 million remaining under its common stock repurchase program.

Accumulated Other Comprehensive Income (Loss)

Information regarding changes in the balances of each component of AOCI was as follows:

	Three Months Ended September 30, 2023
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Changes in Nonperformance Risk on Market Risk Benefits		Changes in Discount Rates on the Liability for Future Policy Benefits		Other (2)		Total
	(In millions)
Balance at June 30, 2023	$	(5,689)	$	430	$	(1,475)	$	905	$	(52)	$	(5,881)
OCI before reclassifications	(2,490)		(33)		174		744		(8)		(1,613)
Deferred income tax benefit (expense) (3)	523		8		(37)		(157)		2		339
AOCI before reclassifications, net of income tax	(7,656)		405		(1,338)		1,492		(58)		(7,155)
Amounts reclassified from AOCI	55		(2)		—		—		(2)		51
Deferred income tax benefit (expense) (3)	(12)		—		—		—		—		(12)
Amounts reclassified from AOCI, net of income tax	43		(2)		—		—		(2)		39
Balance at September 30, 2023	$	(7,613)	$	403	$	(1,338)	$	1,492	$	(60)	$	(7,116)

	Three Months Ended September 30, 2022
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Changes in Nonperformance Risk on Market Risk Benefits		Changes in Discount Rates on the Liability for Future Policy Benefits		Other (2)		Total
	(In millions)
Balance at June 30, 2022	$	(3,727)	$	534	$	(1,350)	$	441	$	(74)	$	(4,176)
OCI before reclassifications	(5,130)		333		130		1,045		(23)		(3,645)
Deferred income tax benefit (expense) (3)	1,209		(202)		(27)		(219)		5		766
AOCI before reclassifications, net of income tax	(7,648)		665		(1,247)		1,267		(92)		(7,055)
Amounts reclassified from AOCI	60		(9)		—		—		—		51
Deferred income tax benefit (expense) (3)	(13)		2		—		—		—		(11)
Amounts reclassified from AOCI, net of income tax	47		(7)		—		—		—		40
Balance at September 30, 2022	$	(7,601)	$	658	$	(1,247)	$	1,267	$	(92)	$	(7,015)

	Nine Months Ended September 30, 2023
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Changes in Nonperformance Risk on Market Risk Benefits		Changes in Discount Rates on the Liability for Future Policy Benefits		Other (2)		Total
	(In millions)
Balance at December 31, 2022	$	(6,194)	$	504	$	(1,378)	$	1,020	$	(58)	$	(6,106)
OCI before reclassifications	(1,971)		(123)		51		598		(5)		(1,450)
Deferred income tax benefit (expense) (3)	414		27		(11)		(126)		1		305
AOCI before reclassifications, net of income tax	(7,751)		408		(1,338)		1,492		(62)		(7,251)
Amounts reclassified from AOCI	175		(6)		—		—		3		172
Deferred income tax benefit (expense) (3)	(37)		1		—		—		(1)		(37)
Amounts reclassified from AOCI, net of income tax	138		(5)		—		—		2		135
Balance at September 30, 2023	$	(7,613)	$	403	$	(1,338)	$	1,492	$	(60)	$	(7,116)

	Nine Months Ended September 30, 2022
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Changes in Nonperformance Risk on Market Risk Benefits		Changes in Discount Rates on the Liability for Future Policy Benefits		Other (2)		Total
	(In millions)
Balance at December 31, 2021	$	5,285	$	239	$	(3,230)	$	(2,199)	$	(48)	$	47
OCI before reclassifications	(16,565)		617		2,510		4,388		(59)		(9,109)
Deferred income tax benefit (expense) (3)	3,534		(185)		(527)		(922)		13		1,913
AOCI before reclassifications, net of income tax	(7,746)		671		(1,247)		1,267		(94)		(7,149)
Amounts reclassified from AOCI	184		(16)		—		—		2		170
Deferred income tax benefit (expense) (3)	(39)		3		—		—		—		(36)
Amounts reclassified from AOCI, net of income tax	145		(13)		—		—		2		134
Balance at September 30, 2022	$	(7,601)	$	658	$	(1,247)	$	1,267	$	(92)	$	(7,015)

__________________

(1)See Note 6 for information on offsets to investments related to future policy benefits.

(2)Includes OCI related to foreign currency translation and defined benefit plan gains and losses.

(3)The effects of income taxes on amounts recorded to AOCI are also recognized in AOCI. These income tax effects are released from AOCI when the related activity is reclassified into results from operations.

Information regarding amounts reclassified out of each component of AOCI was as follows:

AOCI Components	Amounts Reclassified from AOCI								Consolidated Statements of Operations and Comprehensive Income (Loss) Locations
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)	$	(43)	$	(39)	$	(157)	$	(133)	Net investment gains (losses)
Net unrealized investment gains (losses)	(12)		(21)		(18)		(51)		Net derivative gains (losses)
Net unrealized investment gains (losses), before income tax	(55)		(60)		(175)		(184)
Income tax (expense) benefit	12		13		37		39
Net unrealized investment gains (losses), net of income tax	(43)		(47)		(138)		(145)
Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate swaps	—		—		(2)		4		Net derivative gains (losses)
Interest rate swaps	1		1		3		3		Net investment income
Foreign currency swaps	1		8		5		9		Net derivative gains (losses)
Gains (losses) on cash flow hedges, before income tax	2		9		6		16
Income tax (expense) benefit	—		(2)		(1)		(3)
Gains (losses) on cash flow hedges, net of income tax	2		7		5		13
Defined benefit plans adjustment:
Amortization of net actuarial gains (losses)	2		—		(3)		(2)
Amortization of defined benefit plans, before income tax	2		—		(3)		(2)
Income tax (expense) benefit	—		—		1		—
Amortization of defined benefit plans, net of income tax	2		—		(2)		(2)
Total reclassifications, net of income tax	$	(39)	$	(40)	$	(135)	$	(134)

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Other Revenues and Other Expenses

9 Months Ended

Sep. 30, 2023

Other Income and Expenses [Abstract]

Other Revenues and Other Expenses

11. Other Revenues and Other Expenses

Other Revenues

The Company has entered into contracts with mutual funds, fund managers, and their affiliates (collectively, the “Funds”) whereby the Company is paid monthly or quarterly fees (“12b-1 fees”) for providing certain services to customers and distributors of the Funds. The 12b-1 fees are generally equal to a fixed percentage of the average daily balance of the customer’s investment in a fund. The percentage is specified in the contract between the Company and the Funds. Payments are generally collected when due and are neither refundable nor able to offset future fees.

To earn these fees, the Company performs services such as responding to phone inquiries, maintaining records, providing information to distributors and shareholders about fund performance and providing training to account managers and sales agents. The passage of time reflects the satisfaction of the Company’s performance obligations to the Funds and is used to recognize revenue associated with 12b-1 fees.

Other revenues consisted primarily of 12b-1 fees of $68 million and $201 million for the three months and nine months ended September 30, 2023, respectively, and $70 million and $226 million for the three months and nine months ended September 30, 2022, respectively, of which substantially all were reported in the Annuities segment.

Other Expenses

Information on other expenses was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Compensation	$	98	$	89	$	302	$	254
Contracted services and other labor costs	73		73		221		197
Transition services agreements	7		15		26		44
Establishment costs	—		21		—		47
Premium and other taxes, licenses and fees	15		13		49		41
Separate account fees	93		98		277		314
Volume related costs, excluding compensation, net of DAC capitalization	129		130		409		374
Interest expense on debt	38		38		114		114
Other	20		18		55		211
Total other expenses	$	473	$	495	$	1,453	$	1,596

Capitalization of DAC

See Note 5 for additional information on the capitalization of DAC.

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Earnings Per Common Share

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Common Share

12. Earnings Per Common Share

The calculation of earnings per common share was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions, except share and per share data)
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders	$	453	$	388	$	(272)	$	3,665
Weighted average common shares outstanding — basic	65,408,241		71,517,500		66,658,796		74,294,329
Dilutive effect of share-based awards	336,110		441,880		—		482,846
Weighted average common shares outstanding — diluted	65,744,351		71,959,380		66,658,796		74,777,175
Earnings per common share:
Basic	$	6.92	$	5.42	$	(4.08)	$	49.31
Diluted	$	6.89	$	5.39	$	(4.08)	$	49.00

For the three months ended September 30, 2023 and 2022 and the nine months ended September 30, 2022, weighted average shares used for calculating diluted earnings per common share excludes 187,371 of out-of-the-money stock options, as the inclusion of such shares would be antidilutive to the earnings per common share calculation due to the average share price for the three months ended September 30, 2023 and 2022 and the nine months ended September 30, 2022.

For the nine months ended September 30, 2023, basic loss per common share equaled diluted loss per common share. The diluted shares were not included in the per share calculation for these periods as the inclusion of such shares would have an antidilutive effect.

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Contingencies, Commitments and Guarantees

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Contingencies, Commitments and Guarantees

13. Contingencies, Commitments and Guarantees

Contingencies

Litigation

The Company is a defendant in a number of litigation matters. In some of the matters, large or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value.

The Company also receives and responds to subpoenas or other inquiries seeking a broad range of information from various state and federal regulators, agencies and officials. The issues involved in information requests and regulatory matters vary widely, but can include inquiries or investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. The Company cooperates in these inquiries.

Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law.

The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at September 30, 2023.

Matters as to Which an Estimate Can Be Made

For some loss contingency matters, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. In addition to amounts accrued for probable and reasonably estimable losses, as of September 30, 2023, the Company estimates the aggregate range of reasonably possible losses to be up to approximately $10 million.

Matters as to Which an Estimate Cannot Be Made

For other matters, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews.

Sales Practices Claims

Over the past several years, the Company has faced claims and regulatory inquiries and investigations, alleging improper marketing or sales of individual life insurance policies, annuities or other products. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters.

Cost of Insurance Class Actions

Richard A. Newton v. Brighthouse Life Insurance Company (U.S. District Court, Northern District of Georgia, Atlanta Division, filed May 8, 2020). Plaintiff has filed a purported class action lawsuit against Brighthouse Life Insurance Company. Plaintiff was the owner of a universal life insurance policy issued by Travelers Insurance Company, a predecessor to Brighthouse Life Insurance Company. Plaintiff seeks to certify a class of all persons who own or owned life insurance policies issued where the terms of the life insurance policy provide or provided, among other things, a guarantee that the cost of insurance rates would not be increased by more than a specified percentage in any contract year. Plaintiff also alleges that cost of insurance charges were based on improper factors and should have decreased over time due to improving mortality but did not. Plaintiff alleges, among other things, causes of action for breach of contract, fraud, suppression and concealment, and violation of the Georgia Racketeer Influenced and Corrupt Organizations Act. Plaintiff seeks to recover damages, including punitive damages, interest and treble damages, attorneys’ fees, and injunctive and declaratory relief. Brighthouse Life Insurance Company filed a motion to dismiss in June 2020, which was granted in part and denied in part in March 2021. Plaintiff was granted leave to amend the complaint. On January 18, 2023, the plaintiff filed a motion on consent to amend the second amended class action complaint to narrow the scope of the class sought to those persons who own or owned life insurance policies issued in Georgia. The motion was granted on January 23, 2023, and the third amended class action complaint was filed on January 23, 2023. The Company intends to vigorously defend this matter.

Lawrence Martin v. Brighthouse Life Insurance Company (U.S. District Court, Southern District of New York, filed April 6, 2021). Plaintiff has filed a purported class action lawsuit against Brighthouse Life Insurance Company. Plaintiff is the owner of a universal life insurance policy issued by Travelers Insurance Company, a predecessor to Brighthouse Life Insurance Company. Plaintiff seeks to certify a class of similarly situated owners of universal life insurance policies issued or administered by defendants and alleges that cost of insurance charges were based on improper factors and should have decreased over time due to improving mortality but did not. Plaintiff alleges, among other things, causes of action for breach of contract, breach of the covenant of good faith and fair dealing, and unjust enrichment. Plaintiff seeks to recover compensatory damages, attorney’s fees, interest, and equitable relief including a constructive trust. Brighthouse Life Insurance Company filed a motion to dismiss in June 2021, which was denied in February 2022. Brighthouse Life Insurance Company of NY was initially named as a defendant when the lawsuit was filed, but was dismissed as a defendant, without prejudice, in April 2022. The Company intends to vigorously defend this matter.

MOVEit Data Security Incident Litigation

Kennedy v. Progress Software Corporation, et al. (U.S. District Court, District of Massachusetts, filed October 3, 2023). BHF has been named as a defendant in a purported class action lawsuit. The action relates to a data security incident at an alleged third-party vendor, PBI Research Services (“PBI”), and allegedly involves the MOVEit file transfer system that PBI uses in its provision of services (“MOVEit Incident”). As it relates to BHF, plaintiff seeks to certify a subclass of persons whose private information was allegedly maintained by BHF and accessed or acquired in connection with the MOVEit Incident. Plaintiff alleges, among other things, that BHF negligently chose to utilize PBI to store and transfer plaintiff’s and purported class members’ private information despite PBI’s use of the MOVEit software which plaintiff contends contained security vulnerabilities. The complaint asserts claims against BHF for negligence, negligence per se, and unjust enrichment, and plaintiff seeks declaratory and injunctive relief, damages, attorneys’ fees and prejudgment interest. BHF intends to vigorously defend this matter.

Summary

Various litigations, claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, investor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations.

It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, large or indeterminate amounts, including punitive and treble damages, are sought. Although, in light of these considerations, it is possible that an adverse outcome in certain cases could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods.

Other Loss Contingencies

As with litigation and regulatory loss contingencies, the Company considers establishing liabilities for loss contingencies associated with disputes or other matters involving third parties, including counterparties to contractual arrangements entered into by the Company (e.g., third-party vendors and reinsurers), as well as with tax or other authorities (“other loss contingencies”). The Company establishes liabilities for such other loss contingencies when it is probable that a loss will be incurred and the amount of the loss can be reasonably estimated. In matters where it is not probable, but is reasonably possible that a loss will be incurred and the amount of loss can be reasonably estimated, such losses or range of losses are disclosed, and no accrual is made. In the absence of sufficient information to support an assessment of the reasonably possible loss or range of loss, no accrual is made and no loss or range of loss is disclosed.

In the matters where the Company’s subsidiaries are acting as the reinsured or the reinsurer, such matters involve assertions by third parties primarily related to rates, fees or reinsured benefit calculations, and in certain of such matters, the counterparty has made a request to arbitrate.

On a quarterly basis, the Company reviews relevant information with respect to other loss contingencies and, when applicable, updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews.

As of September 30, 2023, the Company estimates the range of reasonably possible losses in excess of the amounts accrued for certain other loss contingencies to be from zero up to approximately $125 million, which are primarily associated with the reinsurance-related matters described above. For certain other matters, the Company may not currently be able to estimate the reasonably possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of such loss.

During the second quarter of 2022, the Company settled a reinsurance-related matter with a third party for $140 million, which is reported in other expenses.

Commitments

Mortgage Loan Commitments

The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $294 million and $247 million at September 30, 2023 and December 31, 2022, respectively.

Commitments to Fund Partnership Investments, Bank Credit Facilities and Private Corporate Bond Investments

The Company commits to fund partnership investments and to lend funds under bank credit facilities and private corporate bond investments. The amounts of these unfunded commitments were $1.4 billion and $1.9 billion at September 30, 2023 and December 31, 2022, respectively.

Guarantees

In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from less than $1 million to $92 million, with a cumulative maximum of $98 million, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments.

In addition, the Company indemnifies its directors and officers as provided in its charters and bylaws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future.

The Company’s recorded liabilities were $1 million at both September 30, 2023 and December 31, 2022 for indemnities, guarantees and commitments.

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Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss) Attributable to Parent	$ 479	$ 413	$ (195)	$ 3,743

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Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Use of Estimates, Policy [Policy Text Block]

Basis of Presentation

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates.

Consolidation, Policy [Policy Text Block]

Consolidation

The accompanying interim condensed consolidated financial statements include the accounts of Brighthouse Financial, as well as partnerships and limited liability companies (“LLC”) that the Company controls. Intercompany accounts and transactions have been eliminated.

The Company uses the equity method of accounting for investments in limited partnerships and LLCs when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. When the Company has virtually no influence over the investee’s operations, the investment is carried at fair value.

The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2022 consolidated balance sheet data was derived from audited consolidated financial statements included in Brighthouse Financial, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2022 Annual Report.

Reclassifications

Certain amounts in the prior year period’s interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform with the 2023 presentation as discussed throughout the Notes to the Interim Condensed Consolidated Financial Statements. See “— Adoption of New Accounting Pronouncements” for discussion of the adoption of new guidance on long-duration contracts in the first quarter of 2023, parts of which were retrospectively applied to prior periods presented in the interim condensed consolidated financial statements.

Liability for Future Policy Benefit [Policy Text Block]

Liability for Future Policy Benefits

The Company establishes a liability for future policy benefits (“LFPB”) for non-participating term and whole life insurance and income annuities. LFPBs are accrued over time as revenue is recognized based on a net premium ratio. The net premium ratio is the portion of gross premiums required to provide for all future benefits. LFPBs are established using the Company’s current assumptions of future cash flows, discounted at a rate that approximates a single A corporate bond curve. The Company generally aggregates insurance contracts into groupings by issue year, product and segment for determining the net premium ratio and related LFPBs.

The Company reviews cash flow assumptions regularly, and if they change significantly, LFPBs are adjusted by determining a revised net premium ratio. The revised net premium ratio is calculated as of contract inception using both actual historical experience and updated future cash flow assumptions. The recalculated net premium ratio is applied to derive a remeasurement gain or loss recognized in the current period net income. For insurance policies in-force as of December 31, 2020, January 1, 2021 is considered the contract inception date. The net premium ratio is also updated quarterly for the difference between actual and expected experience.

The net premium ratio is not updated for changes in discount rate assumptions, as changes in the discount rate are updated quarterly and the impacts are reflected in other comprehensive income (loss) (“OCI”). The discount rate assumption is determined by developing a yield curve based on market observable yields for upper-medium grade fixed income instruments derived from an external index. The yield curve is applied to the expected future cash flows used in the measurement of LFPBs based on the duration characteristics of those liabilities.

The most significant cash flow assumptions used in the establishment of LFPBs are mortality, policy lapses and market interest rates. See Note 4 for more information on the effect of changes in assumptions on the measurement of LFPBs.

The Company also establishes an LFPB for participating term and whole life insurance using a net premium ratio and the Company’s current assumptions of future cash flows. Assumptions are determined at issuance of the policy and are not updated unless a premium deficiency exists. A premium deficiency exists when the LFPB plus the present value of expected future gross premiums are less than expected future benefits and expenses (based on current assumptions). When a premium deficiency exists, the Company will reduce any deferred acquisition costs and may also establish an additional liability to eliminate the deficiency. See Note 4 for more information on assumptions used in establishing LFPBs related to participating term and whole life insurance.

Policyholder Accounts, Policy [Policy Text Block]

Policyholder Account Balances

The Company establishes a policyholder account balance liability for customer deposits on universal life insurance, universal life insurance with secondary guarantees (“ULSG”) and deferred annuity contracts. The policyholder account balance liability is equal to the sum of deposits, plus interest credited, less charges and withdrawals, excluding the impact of any applicable charge that may be incurred upon surrender. The Company also holds additional liabilities for certain product features including secondary guarantees on universal life insurance contracts and the crediting rates associated with index-linked annuities.

Additional Liabilities for ULSG

The Company establishes a liability in addition to the account balance for secondary guarantees on universal life insurance. These liabilities are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the contract period based on total expected assessments. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. The Company also maintains a liability for profits followed by losses on ULSG determined by projecting future earnings and establishing a liability to offset losses that are expected to occur in later years. Both ULSG liabilities are adjusted for the effects of unrealized investment gains and losses.

The Company reviews cash flow assumptions regularly, and, if they change significantly, the liability for secondary guarantees is adjusted by a cumulative charge or credit to net income. Liabilities for secondary guarantees are presented within future policy benefits with changes in the liabilities reported in policyholder benefits and claims, except for the effects of unrealized investment gains and losses, which are reported in OCI.

The most significant assumptions used in estimating liabilities for secondary guarantees are the general account rate of return, premium persistency, mortality and lapses. See Note 4 for more information on the effect of changes in assumptions on the measurement of liabilities for secondary guarantees.

Market Risk Benefit [Policy Text Block]

Market Risk Benefits on Annuity Guarantees

Market risk benefits (“MRB”) are contracts or contract features that provide protection to the policyholder from capital markets risk by transferring such risks to the Company. MRBs are required to be separated from the deferred annuity host contract and measured at fair value. The Company establishes MRB assets and liabilities for guaranteed minimum benefits on variable annuity contracts including guaranteed minimum death benefits (“GMDB”), guaranteed minimum income benefits (“GMIB”), guaranteed minimum accumulation benefits (“GMAB”) and guaranteed minimum withdrawal benefits (“GMWB”). MRB assets are also established for reinsured benefits related to these guarantees. Certain index-linked annuity products may also have guaranteed minimum benefits classified as MRBs.

The measurement of fair value includes an adjustment for the risk that the Company fails to satisfy its obligations, which is referred to as nonperformance risk, as well as risk margin to capture the non-capital markets risks of the instrument, which represents the additional compensation a market participant would require to assume the risks related to the uncertainties in certain actuarial assumptions. MRBs are measured at estimated fair value, with changes reported in change in MRBs on the consolidated statements of operations, except for the change due to nonperformance risk, which is reported in OCI.

See Note 4 for more information on the effect of changes in inputs and assumptions on the measurement of MRBs and Note 8 for more information on the determination of fair value of MRBs.

Derivatives, Embedded Derivatives [Policy Text Block]

Embedded Derivatives on Index-Linked Annuities

The Company issues, and assumes through reinsurance, index-linked annuities which allow the policyholder to participate in returns from certain specified equity indices. The crediting rates associated with these features are classified as embedded derivatives and measured at estimated fair value, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets.

Embedded derivative liabilities are required to be separated from the deferred annuity host contract and measured at fair value. The estimated fair value is determined using a combination of an option pricing model and an option-budget approach. Under this approach, the Company estimates the cost of funding the crediting rate using option pricing and establishes that cost on the balance sheet as a reduction to the initial deposit amount. The estimate of fair value includes an adjustment for nonperformance risk, as well as a risk margin.

Actuarial assumptions are reviewed at least annually, and if they change significantly, the estimated fair value is adjusted through net income. Capital market inputs used in the measurement of index-linked crediting rate embedded derivatives are updated quarterly through net income. The reduction to the initial deposit is accreted back up to the initial deposit over the estimated life of the contract. Embedded derivatives related to index-linked annuities are presented within policyholder account balances while changes in the estimated fair value are reported in net derivative gains (losses).

For more information on the determination of estimated fair value of embedded derivatives, see Note 8.

Insurance Premiums Revenue Recognition, Policy [Policy Text Block]

Recognition of Revenues and Deposits on Insurance Contracts

Premiums related to traditional long-duration contracts are recognized as revenues when due from policyholders. When premiums for income annuities are due over a significantly shorter period than the period over which policyholder benefits are incurred, the Company establishes a deferred profit liability (“DPL”) for the excess of the gross premium over the net premium. DPLs are amortized into net income in proportion to the amount of expected future benefit payments. Assumptions used in the measurement of the DPL are updated at the same time as the related LFPBs, with the updated estimates used to recalculate the DPL as of contract inception. The remeasurement gain or loss from updating DPLs is recognized in current period net income along with the related change in LFPBs.

Deposits related to universal life insurance, deferred annuity contracts and investment contracts are credited to policyholder account balances. Revenues from such contracts consist of asset-based investment management fees, cost of insurance charges, risk charges, policy administration fees and surrender charges. These fees, which are included in universal life and investment-type product policy fees, are recognized when assessed to the contract holder, except for non-level insurance charges which are deferred by the establishment of an unearned revenue liability and amortized over the expected life of the contracts.

Premiums and policy fees are presented net of reinsurance.

Deferred Policy Acquisition Costs, Policy [Policy Text Block]

Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles

The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are directly related to the successful acquisition or renewal of insurance contracts are capitalized as deferred policy acquisition costs (“DAC”). These costs mainly consist of commissions and include the portion of employees’ compensation and benefits related to time spent selling, underwriting or processing the issuance of new insurance contracts. All other acquisition-related costs are expensed as incurred.

Value of business acquired (“VOBA”) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity and investment-type contracts in-force as of the acquisition date.

The Company amortizes DAC and VOBA in a manner that approximates a straight-line basis over the expected life of the related contracts. For life insurance contracts, amortization is based on projections of amounts of insurance in-force, while projections of policy counts are used for deferred annuity contracts and expected future benefits payments for income annuities. These assumptions are reviewed at least annually, and if they change significantly, updates are recognized through changes to future amortization. VOBA balances are tested annually to determine if the balance is deemed unrecoverable from expected future profits. All changes in DAC and VOBA balances are recorded to net income.

Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of an existing contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If a modification is considered to have substantially changed the contract, the associated DAC or VOBA is written off immediately through net income and any new acquisition costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed.

Sales Inducements to Contract Holders, Policy [Policy Text Block]

The Company also has intangible assets representing deferred sales inducements (“DSI”), which are included in other assets, and unearned revenue liabilities, which are included in other policy-related balances. The Company defers sales inducements and unearned revenue and amortizes the balances using the same methodology and assumptions used to amortize DAC and VOBA.

New Accounting Pronouncements, Policy [Policy Text Block]

Adoption of New Accounting Pronouncements

Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASU”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. Except as noted below, there were no significant ASUs adopted during the period ended September 30, 2023.

In March 2022, the FASB issued new guidance on Troubled Debt Restructurings (“TDR”) (ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures). This ASU eliminates TDR recognition and measurement guidance and, instead, requires that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. The Company adopted this guidance on January 1, 2023. This ASU was applied prospectively and did not have a material impact on the consolidated financial statements upon adoption but could change the future recognition and measurement of modified loans and other receivables.

In August 2018, the FASB issued new guidance on long-duration contracts (ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (“LDTI”)). LDTI is effective for fiscal years beginning after January 1, 2023. LDTI resulted in significant changes to the measurement, presentation and disclosure requirements for long-duration insurance contracts. A summary of the most significant changes is provided below:

(1) Guaranteed benefits associated with variable annuity and certain fixed annuity contracts have been classified and presented separately on the consolidated balance sheets as MRBs. MRBs are now measured at estimated fair value through net income and reported separately on the consolidated statements of operations, except for nonperformance risk changes, which will be recognized in OCI.

(2) Cash flow assumptions used to measure LFPBs on traditional long-duration contracts (including term and non-participating whole life insurance and immediate annuities) have been updated on an annual basis using a retrospective method. The resulting remeasurement gain or loss is now reported separately on the consolidated statements of operations along with the remeasurement gain or loss on universal life-type contract liabilities.

(3) The discount rate assumption used to measure the liability for traditional long-duration contracts is now based on an upper-medium grade fixed income yield, updated quarterly, with changes recognized in OCI.

(4) DAC for all insurance products are required to be amortized on a constant-level basis over the expected term of the contracts, using amortization methods that are not a function of revenue or profit emergence. Changes in assumptions used to amortize DAC have been recognized as a revision to future amortization amounts.

(5) There was a significant increase in required disclosures, including disaggregated rollforwards of insurance contract assets and liabilities supplemented by qualitative and quantitative information regarding the cash flows, assumptions, methods and judgements used to measure those balances.

The transition date was January 1, 2021. MRB changes were required to be applied on a retrospective basis, while the changes for insurance liability assumption updates and DAC amortization were applied to existing carrying amounts on the transition date.

The cumulative effect, on an after-tax basis, of the adoption of ASU 2018-12 as of the transition date was a $5.4 billion decrease to retained earnings and a $3.9 billion decrease to accumulated other comprehensive income (loss) (“AOCI”). See Note 2 for more detailed information on the impacts of the ASU to the Company’s financial statements.

Investments, Policy [Policy Text Block]

For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in OCI.

Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses).

Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses.

Accrued interest receivables are presented separate from the amortized cost basis of fixed maturity securities. An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income. Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”). To determine if the credit deterioration experienced since origination is more than insignificant, both (i) the extent of the credit deterioration and (ii) any rating agency downgrades are evaluated. For securities categorized as PCD assets, the present value of cash flows expected to be collected from the security are compared to the par value of the security. If the present value of cash flows expected to be collected is less than the par value, credit losses are embedded in the purchase price of the PCD asset. In this situation, both an allowance for credit losses and amortized cost gross-up is recorded, limited by the amount that the estimated fair value is less than the grossed-up amortized cost basis. Any difference between the purchase price and the present value of cash flows is amortized or accreted into net investment income over the life of the PCD asset. Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities.The allowance for credit losses is a valuation account that is deducted from the mortgage loan’s amortized cost basis to present the net amount expected to be collected on the mortgage loan. The loan balance, or a portion of the loan balance, is written-off against the allowance when management believes this amount is uncollectible. Accrued interest receivables are presented separate from the amortized cost basis of mortgage loans. An allowance for credit losses is generally not estimated on an accrued interest receivable, rather when a loan is placed in nonaccrual status the associated accrued interest receivable balance is written off with a corresponding reduction to net investment income.

The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two-years is used with an input reversion period of one-year.

Mortgage loans are evaluated in each of the three portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity. The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, modifications, foreclosure probable loans, and loans with dissimilar risk characteristics.

Mortgage loans are also evaluated to determine if they qualify as PCD assets. To determine if the credit deterioration experienced since origination is more than insignificant, the extent of credit deterioration is evaluated. All re-performing/modified loan (“RPL”) pools purchased after December 31, 2019 are determined to have been acquired with evidence of more than insignificant credit deterioration since origination and are classified as PCD assets. RPLs are pools of residential mortgage loans acquired at a discount or premium which have both credit and non-credit components. For PCD mortgage loans, the allowance for credit losses is determined using a similar methodology described above, except the loss-rate is determined at the pool level instead of the individual loan level. The initial allowance for credit losses, determined on a collective basis, is then allocated to the individual loans. The initial amortized cost of the loan is grossed-up to reflect the sum of the loan’s purchase price and allowance for credit losses. The difference between the grossed-up amortized cost basis and the par value of the loan is a non-credit discount or premium, which is accreted or amortized into net investment income over the remaining life of the loan. Any subsequent PCD mortgage loan allowance for credit losses is evaluated in a manner similar to the process described above for each of the three portfolio segments.Delinquency is defined consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days; and agricultural mortgage loans — 90 days.Mortgage loans are placed in a nonaccrual status if there are concerns regarding collectability of future payments or the loan is past due, unless the past due loan is well collateralized.

Derivatives, Policy [Policy Text Block]

Types of Derivative Instruments and Derivative Strategies

The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to minimize its exposure to various market risks. Commonly used derivative instruments include, but are not necessarily limited to:

•Interest rate derivatives: swaps, floors, caps, swaptions and forwards;

•Foreign currency exchange rate derivatives: forwards and swaps;

•Equity market derivatives: options, total return swaps and hybrid options; and

•Credit derivatives: single and index reference credit default swaps and swaptions.

Counterparty Credit RiskGenerally, the credit exposure is the fair value at the reporting date less any collateral received from the counterparty.

Income Tax, Policy [Policy Text Block]

The effects of income taxes on amounts recorded to AOCI are also recognized in AOCI. These income tax effects are released from AOCI when the related activity is reclassified into results from operations.

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Financial Services, Insurance, ASU 2018-12 Transition (Tables)

9 Months Ended

Sep. 30, 2023

ASU 2018-12 Transition [Abstract]

Accounting Standards Update and Change in Accounting Principle

The effect of transition adjustments on stockholders’ equity at January 1, 2021 due to the adoption of ASU 2018-12 was as follows:

	Retained Earnings (Deficit)		AOCI
	(In millions)
Liability for future policy benefits	$	(436)	$	(2,073)
Market risk benefits and related adjustments	(6,237)		(3,454)
DAC and VOBA	—		520
Reinsurance recoverables	(141)		34
Deferred income tax asset	1,431		1,044
Total	$	(5,383)	$	(3,929)

The balances of and changes in LFPBs at January 1, 2021 due to the adoption of ASU 2018-12 were as follows:

	Term and Whole Life Insurance		Income Annuities		Structured Settlement and Pension Risk Transfer Annuities
	(In millions)
Balance at December 31, 2020	$	2,854	$	4,311	$	10,115
Removal of related balances in AOCI	—		(203)		(1,784)
Change in cash flow assumptions	14		(171)		200
Initial recognition of deferred profit liabilities	—		176		217
Change in discount rate assumptions	536		754		2,770
Adjusted balance at January 1, 2021	3,404		4,867		11,518
Less: Reinsurance recoverable	85		29		102
Adjusted balance at January 1, 2021, net of reinsurance	$	3,319	$	4,838	$	11,416

The balance of and changes in liabilities classified as MRBs at January 1, 2021 due to the adoption of ASU 2018-12 were as follows:

	Variable Annuities
	(In millions)
Balance at December 31, 2020	$	8,924
Adjustment for the difference between carrying amount and estimated fair value, except for the difference due to nonperformance risk	6,010
Adjustment for cumulative effect of changes in nonperformance risk since issuance	3,454
Adjusted balance at January 1, 2021	18,388
Less: Reinsurance recoverable	169
Adjusted balance at January 1, 2021, net of reinsurance	$	18,219

The balances of and changes in DAC and VOBA on January 1, 2021 due to the adoption of ASU 2018-12 were as follows:

	Variable Annuities		Fixed Rate Annuities		Index-Linked Annuities		Term and Whole Life Insurance		Universal Life Insurance
	(In millions)
DAC:
Balance at December 31, 2020	$	2,440	$	64	$	886	$	527	$	492
Removal of related amounts in AOCI	472		—		—		—		(23)
Adjusted balance at January 1, 2021	$	2,912	$	64	$	886	$	527	$	469
VOBA:
Balance at December 31, 2020	$	363	$	76	$	—	$	8	$	55
Removal of related amounts in AOCI	65		—		—		—		6
Adjusted balance at January 1, 2021	$	428	$	76	$	—	$	8	$	61

The following tables present amounts previously reported in 2022 and 2021, the effect on those amounts of the change due to the adoption of ASU 2018-12 as described in Note 1, and the currently reported amounts in the Unaudited Interim Consolidated Balance Sheets and Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). See Notes 4 and 5 for more information.

	December 31, 2022						December 31, 2021
	As Previously Reported		Effect of Change		As Currently Reported		As Previously Reported		Effect of Change		As Currently Reported
	(In millions)
Total assets	$	225,580	$	(733)	$	224,847	$	259,840	$	2,417	$	262,257
Future policy benefits	$	41,569	$	(10,072)	$	31,497	$	43,807	$	(3,817)	$	39,990
Policyholder account balances	$	74,836	$	(1,309)	$	73,527	$	66,851	$	(1,602)	$	65,249
Market risk benefit liabilities	$	—	$	10,389	$	10,389	$	—	$	16,034	$	16,034
Total liabilities	$	219,542	$	(293)	$	219,249	$	243,633	$	10,174	$	253,807
Retained earnings (deficit)	$	(637)	$	242	$	(395)	$	(642)	$	(3,632)	$	(4,274)
Accumulated other comprehensive income (loss)	$	(5,424)	$	(682)	$	(6,106)	$	4,172	$	(4,125)	$	47
Total equity	$	6,038	$	(440)	$	5,598	$	16,207	$	(7,757)	$	8,450
Total liabilities and equity	$	225,580	$	(733)	$	224,847	$	259,840	$	2,417	$	262,257

	Year Ended December 31, 2022						Year Ended December 31, 2021
	As Previously Reported		Effect of Change		As Currently Reported		As Previously Reported		Effect of Change		As Currently Reported
	(In millions)
Universal life and investment-type product policy fees	$	3,141	$	(706)	$	2,435	$	3,636	$	(656)	$	2,980
Net derivative gains (losses)	$	304	$	(896)	$	(592)	$	(2,469)	$	(1,514)	$	(3,983)
Total revenues	$	8,473	$	(1,600)	$	6,873	$	7,142	$	(2,166)	$	4,976
Policyholder benefits and claims	$	4,165	$	(1,972)	$	2,193	$	3,443	$	(697)	$	2,746
Change in market risk benefits	$	—	$	(4,104)	$	(4,104)	$	—	$	(4,134)	$	(4,134)
Total expenses	$	8,645	$	(6,504)	$	2,141	$	7,350	$	(4,383)	$	2,967
Net income (loss)	$	10	$	3,874	$	3,884	$	(103)	$	1,751	$	1,648

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Reporting Information, by Segment

Operating results by segment, as well as Corporate & Other, were as follows:

	Three Months Ended September 30, 2023
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	393	$	(93)	$	120	$	9	$	429
Provision for income tax expense (benefit)	74		(20)		25		(4)		75
Post-tax adjusted earnings	319		(73)		95		13		354
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		2		2
Less: Preferred stock dividends	—		—		—		26		26
Adjusted earnings	$	319	$	(73)	$	95	$	(15)	326
Adjustments for:
Net investment gains (losses)									(53)
Net derivative gains (losses), excluding investment hedge adjustments of $25									(865)
Change in market risk benefits									1,064
Market value adjustments									15
Provision for income tax (expense) benefit									(34)
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders									$	453
Interest revenue	$	652	$	115	$	300	$	160
Interest expense	$	—	$	—	$	—	$	38

	Three Months Ended September 30, 2022
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	246	$	(44)	$	(20)	$	(14)	$	168
Provision for income tax expense (benefit)	44		(10)		(4)		(4)		26
Post-tax adjusted earnings	202		(34)		(16)		(10)		142
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		2		2
Less: Preferred stock dividends	—		—		—		25		25
Adjusted earnings	$	202	$	(34)	$	(16)	$	(37)	115
Adjustments for:
Net investment gains (losses)									(45)
Net derivative gains (losses), excluding investment hedge adjustments of $23									(615)
Change in market risk benefits									984
Market value adjustments									20
Provision for income tax (expense) benefit									(71)
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders									$	388
Interest revenue	$	547	$	77	$	168	$	108
Interest expense	$	—	$	—	$	—	$	38

	Nine Months Ended September 30, 2023
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	1,137	$	(75)	$	(35)	$	19	$	1,046
Provision for income tax expense (benefit)	213		(18)		(8)		(14)		173
Post-tax adjusted earnings	924		(57)		(27)		33		873
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		4		4
Less: Preferred stock dividends	—		—		—		77		77
Adjusted earnings	$	924	$	(57)	$	(27)	$	(48)	792
Adjustments for:
Net investment gains (losses)									(213)
Net derivative gains (losses), excluding investment hedge adjustments of $86									(3,312)
Change in market risk benefits									2,170
Market value adjustments									9
Provision for income tax (expense) benefit									282
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders									$	(272)
Interest revenue	$	1,879	$	334	$	870	$	460
Interest expense	$	—	$	—	$	—	$	114

	Nine Months Ended September 30, 2022
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	1,078	$	75	$	(189)	$	(101)	$	863
Provision for income tax expense (benefit)	202		14		(40)		(34)		142
Post-tax adjusted earnings	876		61		(149)		(67)		721
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		4		4
Less: Preferred stock dividends	—		—		—		78		78
Adjusted earnings	$	876	$	61	$	(149)	$	(149)	639
Adjustments for:
Net investment gains (losses)									(179)
Net derivative gains (losses), excluding investment hedge adjustments of $38									1,293
Change in market risk benefits									2,625
Market value adjustments									90
Provision for income tax (expense) benefit									(803)
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders									$	3,665
Interest revenue	$	1,648	$	352	$	919	$	208
Interest expense	$	—	$	—	$	—	$	114

Total assets by segment, as well as Corporate & Other, were as follows at:

	September 30, 2023		December 31, 2022
	(In millions)
Annuities	$	151,734	$	151,192
Life	22,221		22,057
Run-off	27,272		28,436
Corporate & Other	22,289		23,162
Total	$	223,516	$	224,847

Reconciliation of Revenue from Segments to Consolidated

Total revenues by segment, as well as Corporate & Other, were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Annuities	$	1,214	$	1,091	$	3,630	$	3,422
Life	299		270		915		922
Run-off	413		312		1,241		1,334
Corporate & Other	162		108		456		208
Adjustments	(918)		(660)		(3,525)		1,114
Total	$	1,170	$	1,121	$	2,717	$	7,000

XML

Insurance (Tables)

9 Months Ended

Sep. 30, 2023

Insurance [Abstract]

Schedule of Liability for Future Policy Benefits, by Product Segment

Information regarding LFPBs for non-participating traditional and limited-payment contracts was as follows:

	Nine Months Ended September 30,
	2023									2022
	Term and Whole Life Insurance			Income Annuities			Structured Settlement and Pension Risk Transfer Annuities			Term and Whole Life Insurance			Income Annuities			Structured Settlement and Pension Risk Transfer Annuities
	(Dollars in millions)
Present value of expected net premiums:
Balance, beginning of period	$	2,871		$	—		$	—		$	3,325		$	—		$	—
Beginning balance at original discount rate	3,212			—			—			3,051			—			—
Effect of model refinements	—			—			—			122			—			—
Effect of changes in cash flow assumptions	215			—			—			139			—			—
Effect of actual variances from expected experience	(36)			—			—			90			—			—
Adjusted beginning of period balance	3,391			—			—			3,402			—			—
Issuances	71			—			—			71			—			—
Interest accrual	83			—			—			87			—			—
Net premiums collected	(281)			—			—			(324)			—			—
Ending balance at original discount rate	3,264			—			—			3,236			—			—
Effect of changes in discount rate assumptions	(430)			—			—			(371)			—			—
Balance, end of period	$	2,834		$	—		$	—		$	2,865		$	—		$	—
Present value of expected future policy benefits:
Balance, beginning of period	$	5,279		$	3,512		$	6,793		$	6,426		$	4,333		$	10,171
Beginning balance at original discount rate	5,922			3,897			7,410			5,820			3,865			8,165
Effect of model refinements	—			—			—			135			—			—
Effect of changes in cash flow assumptions	309			—			—			159			—			—
Effect of actual variances from expected experience	(41)			6			(49)			119			(23)			(39)
Adjusted beginning of period balance	6,190			3,903			7,361			6,233			3,842			8,126
Issuances	74			281			—			79			168			—
Interest accrual	162			107			236			167			108			259
Benefit payments	(375)			(296)			(449)			(514)			(267)			(477)
Ending balance at original discount rate	6,051			3,995			7,148			5,965			3,851			7,908
Effect of changes in discount rate assumptions	(867)			(514)			(956)			(712)			(416)			(859)
Balance, end of period	$	5,184		$	3,481		$	6,192		$	5,253		$	3,435		$	7,049
Net liability for future policy benefits, end of period	$	2,350		$	3,481		$	6,192		$	2,388		$	3,435		$	7,049
Less: Reinsurance recoverable, end of period	41			30			—			49			24			69
Net liability for future policy benefits, after reinsurance recoverable	$	2,309		$	3,451		$	6,192		$	2,339		$	3,411		$	6,980
Weighted-average duration of liability	8.8 years			8.3 years			11.6 years			8.5 years			8.4 years			12.7 years
Weighted-average interest accretion rate	3.95		%	3.94		%	4.45		%	3.98		%	3.89		%	4.44		%
Current discount rate	5.87		%	5.87		%	5.91		%	5.46		%	5.44		%	5.46		%
Gross premiums or assessments recognized during period	$	451		$	353		$	—		$	485		$	195		$	—
Expected future gross premiums, undiscounted	$	6,261		$	—		$	—		$	6,842		$	—		$	—
Expected future gross premiums, discounted	$	4,707		$	—		$	—		$	5,065		$	—		$	—
Expected future benefit payments, undiscounted	$	8,378		$	5,663		$	13,909		$	8,264		$	5,448		$	16,721
Expected future benefit payments, discounted	$	6,051		$	3,995		$	7,148		$	5,965		$	3,851		$	7,908

Information regarding the additional insurance liabilities for universal life-type contracts with secondary guarantees was as follows:

	Nine Months Ended September 30,
	2023			2022
	(Dollars in millions)
Balance, beginning of period	$	6,935		$	7,168
Beginning balance before the effect of unrealized gains and losses	7,175			6,731
Effect of changes in cash flow assumptions	52			(37)
Effect of actual variances from expected experience	75			157
Adjusted beginning of period balance	7,302			6,851
Interest accrual	265			248
Net assessments collected	309			324
Benefit payments	(289)			(369)
Effect of realized capital gains (losses)	—			—
Ending balance before the effect of unrealized gains and losses	7,587			7,054
Effect of unrealized gains and losses	(347)			(83)
Balance, end of period	7,240			6,971
Less: Reinsurance recoverable, end of period	1,409			1,393
Net additional liability, after reinsurance recoverable	$	5,831		$	5,578
Weighted-average duration of liability	6.7 years			6.7 years
Weighted-average interest accretion rate	4.92		%	4.90		%
Gross assessments recognized during period	$	798		$	834

A reconciliation of the net LFPBs for nonparticipating traditional and limited-payment contracts and the additional insurance liabilities for universal life-type contracts with secondary guarantees reported in the preceding rollforward tables to LFPBs on the consolidated balance sheets was as follows at:

	September 30,
	2023		2022
	(In millions)
Liabilities reported in the preceding rollforward tables	$	19,263	$	19,843
Long-term care insurance (1)	5,276		5,632
ULSG liabilities, including liability for profits followed by losses	1,966		2,866
Participating whole life insurance (2)	3,054		2,900
Deferred profit liabilities	459		379
Other	386		396
Total liability for future policy benefits	$	30,404	$	32,016

_______________

(1)Includes liabilities related to fully reinsured individual long-term care insurance. See Note 3.

(2)Participating whole life insurance uses an interest assumption based on the non-forfeiture interest rate, ranging from 3.5% to 4.5%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts, and also includes a liability for terminal dividends. Participating whole life insurance represented 3% of the Company’s life insurance in-force at both September 30, 2023 and 2022, and 40% and 41% of gross traditional life insurance premiums for the nine months ended September 30, 2023 and 2022, respectively.

Information regarding LFPBs for non-participating traditional and limited-payment contracts was as follows:

	Years Ended December 31,
	2022						2021
	Term and Whole Life Insurance		Income Annuities		Structured Settlement and Pension Risk Transfer Annuities		Term and Whole Life Insurance		Income Annuities		Structured Settlement and Pension Risk Transfer Annuities
	(Dollars in millions)
Present value of expected net premiums:
Balance, beginning of year	$	3,325	$	—	$	—	$	3,448	$	—	$	—
Beginning balance at original discount rate	3,051		—		—		2,994		—		—
Effect of model refinements	122		—		—		—		—		—
Effect of changes in cash flow assumptions	137		—		—		70		—		—
Effect of actual variances from expected experience	119		—		—		153		—		—
Adjusted beginning of year balance	3,429		—		—		3,217		—		—
Issuances	93		—		—		113		—		—
Interest accrual	116		—		—		111		—		—
Net premiums collected	(426)		—		—		(390)		—		—
Ending balance at original discount rate	3,212		—		—		3,051		—		—
Effect of changes in discount rate assumptions	(341)		—		—		274		—		—
Balance, end of year	$	2,871	$	—	$	—	$	3,325	$	—	$	—
Present value of expected future policy benefits:
Balance, beginning of year	$	6,426	$	4,333	$	10,171	$	6,852	$	4,691	$	11,301
Beginning balance at original discount rate	5,820		3,865		8,165		5,862		3,938		8,531
Effect of model refinements	135		—		(278)		—		—		—
Effect of changes in cash flow assumptions	157		56		(157)		70		(41)		(41)
Effect of actual variances from expected experience	155		(22)		(23)		153		(6)		(16)
Adjusted beginning of year balance	6,267		3,899		7,707		6,085		3,891		8,474
Issuances	101		224		—		128		198		—
Interest accrual	222		146		327		222		150		359
Benefit payments	(668)		(372)		(624)		(615)		(374)		(668)
Ending balance at original discount rate	5,922		3,897		7,410		5,820		3,865		8,165
Effect of changes in discount rate assumptions	(643)		(385)		(617)		606		468		2,006
Balance, end of year	$	5,279	$	3,512	$	6,793	$	6,426	$	4,333	$	10,171
Net liability for future policy benefits, end of year	$	2,408	$	3,512	$	6,793	$	3,101	$	4,333	$	10,171
Less: Reinsurance recoverable, end of year	45		24		68		64		27		93
Net liability for future policy benefits, after reinsurance recoverable	$	2,363	$	3,488	$	6,725	$	3,037	$	4,306	$	10,078

Policyholder Account Balance

Information regarding policyholder account balances was as follows:

	Universal Life Insurance			Variable Annuities (1)			Index-linked Annuities			Fixed Rate Annuities			ULSG			Company-Owned Life Insurance (1)
	(Dollars in millions)
Nine Months Ended September 30, 2023
Balance, beginning of period	$	2,658		$	4,908		$	33,897		$	14,274		$	5,307		$	641
Premiums and deposits	171			63			5,314			1,983			501			—
Surrenders and withdrawals	(140)			(486)			(2,588)			(1,518)			(17)			—
Benefit payments	(52)			(89)			(177)			(285)			(67)			(6)
Net transfers from (to) separate account	42			8			—			—			—			—
Interest credited	33			98			299			357			165			22
Policy charges	(167)			(19)			(6)			—			(764)			(7)
Changes related to embedded derivatives	—			—			1,880			—			—			—
Balance, end of period	$	2,545		$	4,483		$	38,619		$	14,811		$	5,125		$	650
Weighted-average crediting rate (2)	1.27		%	2.09		%	1.02		%	2.43		%	3.17		%	3.41		%
Nine Months Ended September 30, 2022
Balance, beginning of period	$	2,694		$	4,743		$	32,000		$	11,849		$	5,569		$	646
Premiums and deposits	164			127			5,081			2,181			529			—
Surrenders and withdrawals	(69)			(332)			(1,578)			(439)			(26)			—
Benefit payments	(50)			(89)			(123)			(255)			(58)			(5)
Net transfers from (to) separate account	38			174			—			—			—			(13)
Interest credited	53			120			301			243			152			16
Policy charges	(167)			(20)			(5)			—			(786)			(5)
Changes related to embedded derivatives	—			—			(4,086)			—			—			—
Balance, end of period	$	2,663		$	4,723		$	31,590		$	13,579		$	5,380		$	639
Weighted-average crediting rate (2)	1.98		%	2.53		%	0.84		%	1.98		%	2.77		%	2.47		%

_______________

(1)Includes liabilities related to separate account products where the contract holder elected a general account investment option.

(2)Excludes the effects of embedded derivatives related to index-linked crediting rates.

A reconciliation of policyholder account balances reported in the preceding rollforward table to the liability for policyholder account balances on the consolidated balance sheets was as follows at:

	September 30,
	2023		2022
	(In millions)
Policyholder account balances reported in the preceding rollforward table	$	66,233	$	58,574
Funding agreements classified as investment contracts	11,052		9,959
Other investment contract liabilities	1,086		1,216
Total policyholder account balances	$	78,371	$	69,749

Policyholder Account Balance, Guaranteed Minimum Crediting Rate

The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums was as follows at:

Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 to 50 Basis Points Above		51 to 150 Basis Points Above		Greater than 150 Basis Points Above		Total
	(In millions)
September 30, 2023
Annuities (1):
Less than 2.00%	$	723	$	254	$	474	$	7,185	$	8,636
2.00% to 3.99%	9,730		117		227		67		10,141
Greater than 3.99%	904		—		—		—		904
Total	$	11,357	$	371	$	701	$	7,252	$	19,681
Life insurance (2) (3):
Less than 2.00%	$	—	$	—	$	—	$	216	$	216
2.00% to 3.99%	—		488		49		136		673
Greater than 3.99%	1,614		—		—		—		1,614
Total	$	1,614	$	488	$	49	$	352	$	2,503
ULSG (3):
Less than 2.00%	$	—	$	—	$	—	$	—	$	—
2.00% to 3.99%	1,159		1,506		1,680		257		4,602
Greater than 3.99%	513		—		—		—		513
Total	$	1,672	$	1,506	$	1,680	$	257	$	5,115
December 31, 2022
Annuities (1):
Less than 2.00%	$	861	$	317	$	369	$	5,821	$	7,368
2.00% to 3.99%	6,119		4,872		596		10		11,597
Greater than 3.99%	525		—		—		—		525
Total	$	7,505	$	5,189	$	965	$	5,831	$	19,490
Life insurance (2) (3):
Less than 2.00%	$	—	$	—	$	—	$	172	$	172
2.00% to 3.99%	—		510		87		154		751
Greater than 3.99%	1,657		—		—		—		1,657
Total	$	1,657	$	510	$	87	$	326	$	2,580
ULSG (3):
Less than 2.00%	$	—	$	—	$	—	$	—	$	—
2.00% to 3.99%	1,225		1,581		1,729		266		4,801
Greater than 3.99%	527		—		—		—		527
Total	$	1,752	$	1,581	$	1,729	$	266	$	5,328

_______________

(1)Includes policyholder account balances for fixed rate annuities and the fixed account portion of variable annuities.

(2)Includes policyholder account balances for retained asset accounts, universal life policies and the fixed account portion of universal variable life insurance policies.

(3)Amounts are gross of policy loans.

Market Risk Benefit, Activity

Information regarding MRB assets and liabilities associated with variable annuities was as follows:

	Nine Months Ended September 30,				Years Ended December 31,
	2023		2022		2022		2021
	(Dollars in millions)
Balance, beginning of period	$	9,974	$	15,698	$	15,698	$	18,388
Balance, beginning of period, before effect of changes in nonperformance risk	8,230		11,611		11,611		14,934
Decrements	(114)		19		16		(68)
Effect of changes in future expected assumptions	259		210		210		41
Effect of actual different from expected experience	178		(332)		(48)		(86)
Effect of changes in interest rates	(2,360)		(8,393)		(8,394)		(1,829)
Effect of changes in fund returns	(669)		5,607		3,807		(2,578)
Issuances	(9)		(29)		(47)		(96)
Effect of changes in risk margin	(52)		(120)		(152)		(128)
Aging of the block and other	1,025		946		1,227		1,421
Balance, end of period, before effect of changes in nonperformance risk	6,488		9,519		8,230		11,611
Effect of changes in nonperformance risk	1,690		1,580		1,744		4,087
Balance, end of period	8,178		11,099		9,974		15,698
Less: Reinsurance recoverable, end of period	35		76		71		118
Balance, end of period, net of reinsurance (1)	$	8,143	$	11,023	$	9,903	$	15,580
Weighted-average attained age of contract holder	72.6 years		71.6 years		71.8 years		71.1 years

_______________

(1)Amounts represent the sum of MRB assets and MRB liabilities presented on the consolidated balance sheets at September 30, 2023 and 2022, with the exception of ($7) million and $2 million, respectively, of index-linked annuities not included in this table, and at December 31, 2022 and 2021, with the exception of $3 million and $5 million, respectively, of index-linked annuities not included in this table.

Separate Account, Liability

Information regarding separate account liabilities was as follows:

	Nine Months Ended September 30,
	2023						2022
	Variable Annuities		Universal Life Insurance		Company-Owned Life Insurance		Variable Annuities		Universal Life Insurance		Company-Owned Life Insurance
	(In millions)
Balance, beginning of period	$	77,653	$	5,218	$	1,932	$	105,023	$	6,862	$	2,384
Premiums and deposits	599		122		—		1,021		131		—
Surrenders and withdrawals	(4,603)		(138)		(11)		(4,684)		(131)		(11)
Benefit payments	(1,101)		(51)		(21)		(1,043)		(52)		(25)
Investment performance	4,175		440		174		(23,515)		(1,706)		(457)
Policy charges	(1,638)		(152)		(37)		(1,757)		(151)		(51)
Net transfers from (to) general account	(8)		(42)		—		(174)		(38)		13
Other	(5)		—		(1)		46		(1)		2
Balance, end of period	$	75,072	$	5,397	$	2,036	$	74,917	$	4,914	$	1,855

A reconciliation of separate account liabilities reported in the preceding rollforward table to the separate account liabilities balance on the consolidated balance sheets was as follows at:

	September 30,
	2023		2022
	(In millions)
Separate account liabilities reported in the preceding rollforward table	$	82,505	$	81,686
Variable income annuities	152		137
Pension risk transfer annuities	18		15
Total separate account liabilities	$	82,675	$	81,838

Fair Value, Separate Account Investment

The aggregate estimated fair value of assets, by major investment asset category, supporting separate accounts was as follows at:

	September 30, 2023		December 31, 2022
	(In millions)
Equity securities	$	82,419	$	84,667
Fixed maturity securities	244		278
Cash and cash equivalents	6		9
Other assets	6		11
Total aggregate estimated fair value of assets	$	82,675	$	84,965

Guarantees related to Annuity, Universal and Variable Life Contracts

Information regarding the net amount at risk and cash surrender value for insurance products was as follows at:

	Universal Life Insurance		Variable Annuities		Index-linked Annuities		Fixed Rate Annuities		ULSG		Company-Owned Life Insurance
	(In millions)
September 30, 2023
Account balances reported in the preceding rollforward tables:
Policyholder account balances	$	2,545	$	4,483	$	38,619	$	14,811	$	5,125	$	650
Separate account liabilities	5,397		75,072		—		—		—		2,036
Total account balances	$	7,942	$	79,555	$	38,619	$	14,811	$	5,125	$	2,686
Net amount at risk	$	36,238	$	16,127	N/A		N/A		$	69,277	$	2,625
Cash surrender value	$	7,346	$	79,155	$	36,164	$	14,189	$	6,121	$	2,469
September 30, 2022
Account balances reported in the preceding rollforward tables:
Policyholder account balances	$	2,663	$	4,723	$	31,590	$	13,579	$	5,380	$	639
Separate account liabilities	4,914		74,917		—		—		—		1,855
Total account balances	$	7,577	$	79,640	$	31,590	$	13,579	$	5,380	$	2,494
Net amount at risk	$	38,783	$	18,461	N/A		N/A		$	71,142	$	3,413
Cash surrender value	$	6,918	$	79,523	$	28,922	$	12,748	$	6,315	$	2,284

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Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles (Tables)

9 Months Ended

Sep. 30, 2023

Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract]

Deferred Policy Acquisition Costs

Information regarding DAC and VOBA was as follows:

	Variable Annuities		Fixed Rate Annuities		Index-linked Annuities		Term and Whole Life Insurance		Universal Life Insurance
	(In millions)
Nine Months Ended September 30, 2023
DAC:
Balance, beginning of period	$	2,508	$	107	$	1,213	$	405	$	392
Capitalization	29		9		255		1		9
Amortization	(185)		(8)		(167)		(40)		(35)
Balance, end of period	2,352		108		1,301		366		366
VOBA:
Balance, beginning of period	341		65		—		5		48
Amortization	(24)		(4)		—		(1)		(4)
Balance, end of period	317		61		—		4		44
Total DAC and VOBA:
Balance, end of period	$	2,669	$	169	$	1,301	$	370	$	410
Nine Months Ended September 30, 2022
DAC:
Balance, beginning of period	$	2,718	$	89	$	1,081	$	462	$	431
Capitalization	48		20		252		—		8
Amortization	(200)		(10)		(145)		(45)		(38)
Balance, end of period	2,566		99		1,188		417		401
VOBA:
Balance, beginning of period	377		70		—		6		54
Amortization	(27)		(4)		—		(1)		(4)
Balance, end of period	350		66		—		5		50
Total DAC and VOBA:
Balance, end of period	$	2,916	$	165	$	1,188	$	422	$	451

	Variable Annuities		Fixed Rate Annuities		Index-linked Annuities		Term and Whole Life Insurance		Universal Life Insurance
	(In millions)
DAC:
Adjusted balance at January 1, 2021 (1)	$	2,912	$	64	$	886	$	527	$	469
Capitalization	90		37		354		(3)		16
Amortization	(284)		(12)		(159)		(62)		(54)
Balance at December 31, 2021	2,718		89		1,081		462		431
Capitalization	55		30		330		(1)		11
Amortization	(265)		(12)		(198)		(56)		(50)
Balance at December 31, 2022	$	2,508	$	107	$	1,213	$	405	$	392
VOBA:
Adjusted balance at January 1, 2021 (1)	$	428	$	76	$	—	$	8	$	61
Amortization	(51)		(6)		—		(2)		(7)
Balance at December 31, 2021	377		70		—		6		54
Amortization	(36)		(5)		—		(1)		(6)
Balance at December 31, 2022	341		65		—		5		48
Total DAC and VOBA:
Balance at December 31, 2022	$	2,849	$	172	$	1,213	$	410	$	440
Balance at December 31, 2021	$	3,095	$	159	$	1,081	$	468	$	485

_______________

(1)Includes an adjustment to eliminate balances included in AOCI related to the adoption of ASU 2018-12 (see Note 2).

Present Value of Future Insurance Profits

Information regarding DAC and VOBA was as follows:

	Variable Annuities		Fixed Rate Annuities		Index-linked Annuities		Term and Whole Life Insurance		Universal Life Insurance
	(In millions)
Nine Months Ended September 30, 2023
DAC:
Balance, beginning of period	$	2,508	$	107	$	1,213	$	405	$	392
Capitalization	29		9		255		1		9
Amortization	(185)		(8)		(167)		(40)		(35)
Balance, end of period	2,352		108		1,301		366		366
VOBA:
Balance, beginning of period	341		65		—		5		48
Amortization	(24)		(4)		—		(1)		(4)
Balance, end of period	317		61		—		4		44
Total DAC and VOBA:
Balance, end of period	$	2,669	$	169	$	1,301	$	370	$	410
Nine Months Ended September 30, 2022
DAC:
Balance, beginning of period	$	2,718	$	89	$	1,081	$	462	$	431
Capitalization	48		20		252		—		8
Amortization	(200)		(10)		(145)		(45)		(38)
Balance, end of period	2,566		99		1,188		417		401
VOBA:
Balance, beginning of period	377		70		—		6		54
Amortization	(27)		(4)		—		(1)		(4)
Balance, end of period	350		66		—		5		50
Total DAC and VOBA:
Balance, end of period	$	2,916	$	165	$	1,188	$	422	$	451

	Variable Annuities		Fixed Rate Annuities		Index-linked Annuities		Term and Whole Life Insurance		Universal Life Insurance
	(In millions)
DAC:
Adjusted balance at January 1, 2021 (1)	$	2,912	$	64	$	886	$	527	$	469
Capitalization	90		37		354		(3)		16
Amortization	(284)		(12)		(159)		(62)		(54)
Balance at December 31, 2021	2,718		89		1,081		462		431
Capitalization	55		30		330		(1)		11
Amortization	(265)		(12)		(198)		(56)		(50)
Balance at December 31, 2022	$	2,508	$	107	$	1,213	$	405	$	392
VOBA:
Adjusted balance at January 1, 2021 (1)	$	428	$	76	$	—	$	8	$	61
Amortization	(51)		(6)		—		(2)		(7)
Balance at December 31, 2021	377		70		—		6		54
Amortization	(36)		(5)		—		(1)		(6)
Balance at December 31, 2022	341		65		—		5		48
Total DAC and VOBA:
Balance at December 31, 2022	$	2,849	$	172	$	1,213	$	410	$	440
Balance at December 31, 2021	$	3,095	$	159	$	1,081	$	468	$	485

_______________

(1)Includes an adjustment to eliminate balances included in AOCI related to the adoption of ASU 2018-12 (see Note 2).

Deferred Sale Inducement Cost

Information regarding DSI, included in other assets, was as follows:

	Nine Months Ended September 30,
	2023				2022
	Variable Annuities		Fixed Rate Annuities		Variable Annuities		Fixed Rate Annuities
	(In millions)
Balance, beginning of period	$	245	$	9	$	272	$	10
Amortization	(19)		(1)		(21)		(1)
Balance, end of period	$	226	$	8	$	251	$	9

Unearned Revenue

Information regarding unearned revenue, included in other policy-related balances, was as follows:

	Nine Months Ended September 30,
	2023						2022
	Universal Life Insurance		ULSG		Variable Annuities		Universal Life Insurance		ULSG		Variable Annuities
	(In millions)
Balance, beginning of period	$	356	$	488	$	74	$	358	$	344	$	80
Capitalization	29		132		—		29		137		1
Amortization	(29)		(36)		(6)		(30)		(26)		(6)
Balance, end of period	$	356	$	584	$	68	$	357	$	455	$	75

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Investments (Tables)

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Fixed Maturity Securities by Sector

Fixed maturity securities by sector were as follows at:

	September 30, 2023										December 31, 2022
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized				Estimated Fair Value		Amortized Cost		Allowance for Credit Losses		Gross Unrealized				Estimated Fair Value
					Gains		Losses								Gains		Losses
	(In millions)
U.S. corporate	$	38,294	$	14	$	84	$	5,454	$	32,910	$	36,926	$	1	$	203	$	4,521	$	32,607
Foreign corporate	12,709		—		20		2,051		10,678		12,471		1		38		1,932		10,576
U.S. government and agency	8,640		—		34		872		7,802		8,318		—		300		602		8,016
RMBS	8,235		6		31		1,209		7,051		8,431		2		44		945		7,528
CMBS	7,112		2		1		803		6,308		7,324		3		—		710		6,611
ABS	6,294		—		12		192		6,114		5,652		—		3		296		5,359
State and political subdivision	4,010		—		64		470		3,604		4,074		—		125		400		3,799
Foreign government	1,079		—		20		133		966		1,148		—		39		106		1,081
Total fixed maturity securities	$	86,373	$	22	$	266	$	11,184	$	75,433	$	84,344	$	7	$	752	$	9,512	$	75,577

Maturities of Fixed Maturity Securities

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at September 30, 2023:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Securities (1)		Total Fixed Maturity Securities
	(In millions)
Amortized cost	$	2,207	$	16,877	$	15,314	$	30,334	$	21,641	$	86,373
Estimated fair value	$	2,163	$	15,977	$	13,185	$	24,635	$	19,473	$	75,433

_______________

(1)Structured securities include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”).

Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector

The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at:

	September 30, 2023								December 31, 2022
	Less than 12 Months				12 Months or Greater				Less than 12 Months				12 Months or Greater
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(Dollars in millions)
U.S. corporate	$	8,766	$	881	$	21,485	$	4,573	$	24,509	$	3,351	$	3,979	$	1,170
Foreign corporate	2,032		164		8,039		1,887		8,260		1,413		1,601		519
U.S. government and agency	3,098		175		3,395		697		3,121		265		1,147		337
RMBS	1,163		115		5,398		1,094		4,731		497		2,246		448
CMBS	1,425		169		4,681		634		5,589		543		970		167
ABS	1,336		18		3,515		174		3,347		159		1,733		137
State and political subdivision	1,116		120		1,399		350		2,041		317		247		83
Foreign government	200		14		575		119		777		99		21		7
Total fixed maturity securities	$	19,136	$	1,656	$	48,487	$	9,528	$	52,375	$	6,644	$	11,944	$	2,868
Total number of securities in an unrealized loss position	2,938				7,027				7,309				2,049

Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector

The changes in the allowance for credit losses by sector were as follows:

	U.S. Corporate		RMBS		Foreign Corporate		CMBS		Total
	(In millions)
Nine Months Ended September 30, 2023
Balance, beginning of period	$	1	$	2	$	1	$	3	$	7
Allowance on securities where credit losses were not previously recorded	14		4		—		—		18
Reductions for securities sold	(1)		—		—		(1)		(2)
Change in allowance on securities with an allowance recorded in a previous period	—		—		—		—		—
Write-offs charged against allowance (1)	—		—		(1)		—		(1)
Balance, end of period	$	14	$	6	$	—	$	2	$	22
Nine Months Ended September 30, 2022
Balance, beginning of period	$	2	$	—	$	7	$	2	$	11
Allowance on securities where credit losses were not previously recorded	—		1		—		—		1
Reductions for securities sold	(1)		—		—		—		(1)
Change in allowance on securities with an allowance recorded in a previous period	—		1		—		—		1
Write-offs charged against allowance (1)	—		—		(7)		—		(7)
Balance, end of period	$	1	$	2	$	—	$	2	$	5

_______________

(1)The Company recorded total write-offs of $8 million and $10 million for the nine months ended September 30, 2023 and 2022, respectively.

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:

	September 30, 2023				December 31, 2022
	Carrying Value		% of Total		Carrying Value		% of Total
	(Dollars in millions)
Commercial	$	13,307	58.6	%	$	13,574	59.2	%
Agricultural	4,461		19.7		4,365		19.0
Residential	5,051		22.3		5,116		22.3
Total mortgage loans (1)	22,819		100.6		23,055		100.5
Allowance for credit losses	(137)		(0.6)		(119)		(0.5)
Total mortgage loans, net	$	22,682	100.0	%	$	22,936	100.0	%

_______________

(1)Purchases of mortgage loans from third parties were $224 million and $255 million for the three months and nine months ended September 30, 2023, respectively, and $387 million and $1.6 billion for the three months and nine months ended September 30, 2022, respectively, and were primarily comprised of residential mortgage loans.

Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment

The changes in the allowance for credit losses by portfolio segment were as follows:

	Commercial		Agricultural		Residential		Total
	(In millions)
Nine Months Ended September 30, 2023
Balance, beginning of period	$	49	$	15	$	55	$	119
Current period provision	22		1		—		23
Charge-offs, net of recoveries	(4)		(1)		—		(5)
Balance, end of period	$	67	$	15	$	55	$	137
Nine Months Ended September 30, 2022
Balance, beginning of period	$	67	$	12	$	44	$	123
Current period provision	1		3		(5)		(1)
Charge-offs, net of recoveries	(23)		—		—		(23)
Balance, end of period	$	45	$	15	$	39	$	99

Credit Quality of Mortgage Loans by Portfolio Segment

The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at:

	2023		2022		2021		2020		2019		Prior		Total
	(In millions)
September 30, 2023
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%	$	161	$	1,876	$	2,515	$	224	$	1,289	$	2,826	$	8,891
65% to 75%	—		529		650		177		269		1,195		2,820
76% to 80%	—		12		50		39		209		508		818
Greater than 80%	—		—		—		—		95		683		778
Total commercial mortgage loans	161		2,417		3,215		440		1,862		5,212		13,307
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%	160		574		1,138		459		507		1,334		4,172
65% to 75%	—		127		107		6		31		18		289
Greater than 80%	—		—		—		—		—		—		—
Total agricultural mortgage loans	160		701		1,245		465		538		1,352		4,461
Residential mortgage loans
Performing	99		1,274		1,693		149		208		1,543		4,966
Nonperforming	—		20		20		1		2		42		85
Total residential mortgage loans	99		1,294		1,713		150		210		1,585		5,051
Total	$	420	$	4,412	$	6,173	$	1,055	$	2,610	$	8,149	$	22,819

	2022		2021		2020		2019		2018		Prior		Total
	(In millions)
December 31, 2022
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%	$	1,916	$	2,819	$	405	$	1,493	$	888	$	3,627	$	11,148
65% to 75%	503		354		—		271		367		425		1,920
76% to 80%	—		18		40		90		65		48		261
Greater than 80%	—		—		—		25		57		163		245
Total commercial mortgage loans	2,419		3,191		445		1,879		1,377		4,263		13,574
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%	532		1,163		420		496		643		740		3,994
65% to 75%	148		90		59		56		1		16		370
Greater than 80%	—		—		—		—		1		—		1
Total agricultural mortgage loans	680		1,253		479		552		645		756		4,365
Residential mortgage loans
Performing	1,266		1,745		167		215		168		1,491		5,052
Nonperforming	4		8		—		2		1		49		64
Total residential mortgage loans	1,270		1,753		167		217		169		1,540		5,116
Total	$	4,369	$	6,197	$	1,091	$	2,648	$	2,191	$	6,559	$	23,055

The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at:

	September 30, 2023				December 31, 2022
	Amortized Cost		% of Total		Amortized Cost		% of Total
	(Dollars in millions)
Debt-service coverage ratios:
Greater than 1.20x	$	12,276	92.2	%	$	12,157	89.6	%
1.00x - 1.20x	540		4.1		590		4.3
Less than 1.00x	491		3.7		827		6.1
Total	$	13,307	100.0	%	$	13,574	100.0	%

Past Due Mortgage Loans by Portfolio Segment

The aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at:

	September 30, 2023								December 31, 2022
	Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total
	(In millions)
Current	$	13,290	$	4,439	$	4,890	$	22,619	$	13,574	$	4,346	$	5,041	$	22,961
30-59 days past due	—		—		76		76		—		—		11		11
60-89 days past due	—		—		30		30		—		—		16		16
90-179 days past due	—		—		23		23		—		3		31		34
180+ days past due	17		22		32		71		—		16		17		33
Total	$	13,307	$	4,461	$	5,051	$	22,819	$	13,574	$	4,365	$	5,116	$	23,055

Mortgage Loans in Nonaccrual Status by Portfolio Segment

The amortized cost of mortgage loans in a nonaccrual status by portfolio segment was as follows at:

	Commercial		Agricultural		Residential (1)		Total
	(In millions)
September 30, 2023	$	17	$	—	$	85	$	102
December 31, 2022	$	11	$	3	$	64	$	78

_______________

(1)The Company had no mortgage loans in nonaccrual status for which there was no related allowance for credit losses at both September 30, 2023 and December 31, 2022.

Net Unrealized Investment Gains (Losses)

The components of net unrealized investment gains (losses), included in AOCI, were as follows at:

	September 30, 2023		December 31, 2022
	(In millions)
Fixed maturity securities	$	(10,918)	$	(8,760)
Derivatives	509		638
Other	(8)		3
Subtotal	(10,417)		(8,119)
Amounts allocated from:
Future policy benefits	1,290		917
Deferred income tax benefit (expense)	1,917		1,512
Net unrealized investment gains (losses)	$	(7,210)	$	(5,690)

The changes in net unrealized investment gains (losses) were as follows:

	Nine Months Ended September 30, 2023
	(In millions)
Balance at December 31, 2022	$	(5,690)
Unrealized investment gains (losses) during the period	(2,298)
Unrealized investment gains (losses) relating to:
Future policy benefits	373
Deferred income tax benefit (expense)	405
Balance at September 30, 2023	$	(7,210)
Change in net unrealized investment gains (losses)	$	(1,520)

Securities Lending

Elements of the securities lending program are presented below at:

	September 30, 2023		December 31, 2022
	(In millions)
Securities on loan: (1)
Amortized cost	$	3,620	$	3,995
Estimated fair value	$	3,093	$	3,638
Cash collateral received from counterparties (2)	$	3,171	$	3,731
Reinvestment portfolio — estimated fair value	$	3,051	$	3,603

_______________

(1)Included in fixed maturity securities.

(2)Included in payables for collateral under securities loaned and other transactions.

The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at:

	September 30, 2023								December 31, 2022
	Open (1)		1 Month or Less		1 to 6 Months		Total		Open (1)		1 Month or Less		1 to 6 Months		Total
	(In millions)
U.S. government and agency	$	714	$	1,064	$	996	$	2,774	$	640	$	1,527	$	984	$	3,151
U.S. corporate	—		253		27		280		2		410		—		412
Foreign corporate	—		99		8		107		—		152		—		152
Foreign government	—		4		6		10		—		16		—		16
Total	$	714	$	1,420	$	1,037	$	3,171	$	642	$	2,105	$	984	$	3,731

_______________

(1)The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral.

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at:

	September 30, 2023		December 31, 2022
	(In millions)
Invested assets on deposit (regulatory deposits) (1)	$	7,863	$	7,999
Invested assets held in trust (reinsurance agreements) (2)	5,536		5,621
Invested assets pledged as collateral (3)	14,260		13,920
Total invested assets on deposit, held in trust and pledged as collateral	$	27,659	$	27,540

_______________

(1)The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $94 million and $21 million of the assets on deposit represents restricted cash and cash equivalents at September 30, 2023 and December 31, 2022, respectively.

(2)The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $228 million and $240 million of the assets held in trust balance represents restricted cash and cash equivalents at September 30, 2023 and December 31, 2022, respectively.

(3)The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report) and derivative transactions (see Note 7).

Variable Interest Entities

The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at:

	September 30, 2023				December 31, 2022
	Carrying Amount		Maximum Exposure to Loss		Carrying Amount		Maximum Exposure to Loss
	(In millions)
Fixed maturity securities	$	14,940	$	16,780	$	15,896	$	17,471
Limited partnerships and LLCs	4,358		5,544		4,136		5,491
Total	$	19,298	$	22,324	$	20,032	$	22,962

Components of Net Investment Income

The components of net investment income were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Investment income:
Fixed maturity securities	$	897	$	787	$	2,602	$	2,247
Equity securities	1		1		2		2
Mortgage loans	240		208		716		616
Policy loans	17		16		50		48
Limited partnerships and LLCs (1)	53		(106)		129		257
Cash, cash equivalents and short-term investments	61		22		166		29
Other	24		20		66		52
Total investment income	1,293		948		3,731		3,251
Less: Investment expenses	91		71		274		162
Net investment income	$	1,202	$	877	$	3,457	$	3,089

_______________

(1)Includes net investment income pertaining to other limited partnership interests of $64 million and $156 million for the three months and nine months ended September 30, 2023, respectively, and ($127) million and $178 million for the three months and nine months ended September 30, 2022, respectively.

Components of Net Investment Gains (Losses)

The components of net investment gains (losses) were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Fixed maturity securities	$	(54)	$	(38)	$	(185)	$	(140)
Equity securities	(1)		(2)		(2)		(14)
Mortgage loans	3		2		(24)		(1)
Limited partnerships and LLCs	—		(4)		—		(21)
Other	(1)		(3)		(2)		(3)
Total net investment gains (losses)	$	(53)	$	(45)	$	(213)	$	(179)

Sales or Disposals of Fixed Maturity Securities

Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Proceeds	$	494	$	1,146	$	1,771	$	5,261
Gross investment gains	$	1	$	1	$	12	$	47
Gross investment losses	(44)		(38)		(173)		(181)
Net investment gains (losses)	$	(43)	$	(37)	$	(161)	$	(134)

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Derivatives (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position

The primary underlying risk exposure, gross notional amount and estimated fair value of derivatives, excluding embedded derivatives, held were as follows at:

		September 30, 2023						December 31, 2022
	Primary Underlying Risk Exposure	Gross Notional Amount		Estimated Fair Value				Gross Notional Amount		Estimated Fair Value
				Assets		Liabilities				Assets		Liabilities
		(In millions)
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate forwards	Interest rate	$	—	$	—	$	—	$	60	$	—	$	12
Foreign currency swaps	Foreign currency exchange rate	3,942		472		14		4,026		596		8
Total qualifying hedges		3,942		472		14		4,086		596		20
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate swaps	Interest rate	30,527		168		280		3,145		98		46
Interest rate floors	Interest rate	3,000		2		1		3,250		12		3
Interest rate caps	Interest rate	5,800		80		27		6,350		137		43
Interest rate options	Interest rate	31,080		19		303		28,688		22		232
Interest rate forwards	Interest rate	16,441		178		2,867		18,168		35		2,466
Foreign currency swaps	Foreign currency exchange rate	771		125		—		822		148		—
Foreign currency forwards	Foreign currency exchange rate	480		5		1		487		1		10
Credit default swaps — written	Credit	1,530		21		1		1,757		18		2
Credit default swaptions	Credit	—		—		—		100		—		—
Equity index options	Equity market	16,215		508		436		17,229		697		351
Equity total return swaps	Equity market	56,332		931		1,061		32,909		520		747
Hybrid options	Equity market	630		7		—		—		—		—
Total non-designated or non-qualifying derivatives		162,806		2,044		4,977		112,905		1,688		3,900
Total		$	166,748	$	2,516	$	4,991	$	116,991	$	2,284	$	3,920

Derivative Instruments, Gain (Loss)

The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items reported in net derivative gains (losses) were as follows:

	Net Derivative Gains (Losses) Recognized for Derivatives		Net Derivative Gains (Losses) Recognized for Hedged Items		Net Investment Income		Amount of Gains (Losses) Deferred in AOCI
	(In millions)
Three Months Ended September 30, 2023
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate	$	—	$	—	$	1	$	(2)
Foreign currency exchange rate	1		(1)		13		(31)
Total cash flow hedges	1		(1)		14		(33)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	(1,481)		—		—		—
Foreign currency exchange rate	21		(16)		—		—
Credit	3		—		—		—
Equity market	(280)		—		—		—
Embedded	913		—		—		—
Total non-qualifying hedges	(824)		(16)		—		—
Total	$	(823)	$	(17)	$	14	$	(33)
Three Months Ended September 30, 2022
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate	$	—	$	—	$	1	$	(8)
Foreign currency exchange rate	8		(6)		17		341
Total cash flow hedges	8		(6)		18		333
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	(1,233)		—		—		—
Foreign currency exchange rate	99		(23)		—		—
Credit	5		—		—		—
Equity market	40		—		—		—
Embedded	518		—		—		—
Total non-qualifying hedges	(571)		(23)		—		—
Total	$	(563)	$	(29)	$	18	$	333

	Net Derivative Gains (Losses) Recognized for Derivatives		Net Derivative Gains (Losses) Recognized for Hedged Items		Net Investment Income		Amount of Gains (Losses) Deferred in AOCI
	(In millions)
Nine Months Ended September 30, 2023
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate	$	(2)	$	—	$	3	$	(1)
Foreign currency exchange rate	5		(6)		40		(122)
Total cash flow hedges	3		(6)		43		(123)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	(1,422)		—		—		—
Foreign currency exchange rate	25		(12)		—		—
Credit	22		—		—		—
Equity market	44		—		—		—
Embedded	(1,880)		—		—		—
Total non-qualifying hedges	(3,211)		(12)		—		—
Total	$	(3,208)	$	(18)	$	43	$	(123)
Nine Months Ended September 30, 2022
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate	$	4	$	—	$	3	$	(49)
Foreign currency exchange rate	9		(8)		42		666
Total cash flow hedges	13		(8)		45		617
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	(3,671)		—		—		—
Foreign currency exchange rate	212		(62)		—		—
Credit	(27)		—		—		—
Equity market	768		—		—		—
Embedded	4,106		—		—		—
Total non-qualifying hedges	1,388		(62)		—		—
Total	$	1,401	$	(70)	$	45	$	617

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items reported in net derivative gains (losses) were as follows:

	Net Derivative Gains (Losses) Recognized for Derivatives		Net Derivative Gains (Losses) Recognized for Hedged Items		Net Investment Income		Amount of Gains (Losses) Deferred in AOCI
	(In millions)
Three Months Ended September 30, 2023
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate	$	—	$	—	$	1	$	(2)
Foreign currency exchange rate	1		(1)		13		(31)
Total cash flow hedges	1		(1)		14		(33)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	(1,481)		—		—		—
Foreign currency exchange rate	21		(16)		—		—
Credit	3		—		—		—
Equity market	(280)		—		—		—
Embedded	913		—		—		—
Total non-qualifying hedges	(824)		(16)		—		—
Total	$	(823)	$	(17)	$	14	$	(33)
Three Months Ended September 30, 2022
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate	$	—	$	—	$	1	$	(8)
Foreign currency exchange rate	8		(6)		17		341
Total cash flow hedges	8		(6)		18		333
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	(1,233)		—		—		—
Foreign currency exchange rate	99		(23)		—		—
Credit	5		—		—		—
Equity market	40		—		—		—
Embedded	518		—		—		—
Total non-qualifying hedges	(571)		(23)		—		—
Total	$	(563)	$	(29)	$	18	$	333

	Net Derivative Gains (Losses) Recognized for Derivatives		Net Derivative Gains (Losses) Recognized for Hedged Items		Net Investment Income		Amount of Gains (Losses) Deferred in AOCI
	(In millions)
Nine Months Ended September 30, 2023
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate	$	(2)	$	—	$	3	$	(1)
Foreign currency exchange rate	5		(6)		40		(122)
Total cash flow hedges	3		(6)		43		(123)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	(1,422)		—		—		—
Foreign currency exchange rate	25		(12)		—		—
Credit	22		—		—		—
Equity market	44		—		—		—
Embedded	(1,880)		—		—		—
Total non-qualifying hedges	(3,211)		(12)		—		—
Total	$	(3,208)	$	(18)	$	43	$	(123)
Nine Months Ended September 30, 2022
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate	$	4	$	—	$	3	$	(49)
Foreign currency exchange rate	9		(8)		42		666
Total cash flow hedges	13		(8)		45		617
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	(3,671)		—		—		—
Foreign currency exchange rate	212		(62)		—		—
Credit	(27)		—		—		—
Equity market	768		—		—		—
Embedded	4,106		—		—		—
Total non-qualifying hedges	1,388		(62)		—		—
Total	$	1,401	$	(70)	$	45	$	617

Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps

The estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps were as follows at:

	September 30, 2023					December 31, 2022
Rating Agency Designation of Referenced Credit Obligations (1)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)
	(Dollars in millions)
Aaa/Aa/A	$	7	$	544	1.5	$	7	$	544	2.2
Baa	12		958		5.2	8		1,185		5.0
Ba	2		24		3.2	2		24		4.0
Caa and Lower	(1)		4		2.2	(1)		4		3.0
Total	$	20	$	1,530	3.8	$	16	$	1,757	4.1

_______________

(1)The Company has written credit protection on both single name and index references. The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s, S&P and Fitch. If no rating is available from a rating agency, then an internally developed rating is used.

(2)The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts.

Estimated Fair Value of Derivative Assets after Master Netting Agreements and Cash Collateral

The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:

			Gross Amounts Not Offset on the Consolidated Balance Sheets
	Gross Amount Recognized		Financial Instruments (1)		Collateral Received/Pledged (2)		Net Amount		Securities Collateral Received/Pledged (3)		Net Amount After Securities Collateral
	(In millions)
September 30, 2023
Derivative assets	$	2,735	$	(2,028)	$	(688)	$	19	$	(6)	$	13
Derivative liabilities	$	5,214	$	(2,028)	$	—	$	3,186	$	(3,186)	$	—
December 31, 2022
Derivative assets	$	2,308	$	(1,659)	$	(640)	$	9	$	(6)	$	3
Derivative liabilities	$	3,919	$	(1,659)	$	(7)	$	2,253	$	(2,251)	$	2

_______________

(1)Represents amounts subject to an enforceable master netting agreement or similar agreement.

(2)The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement.

(3)Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received.

Estimated Fair Value of Derivative Liabilities after Master Netting Agreements and Cash Collateral

The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:

			Gross Amounts Not Offset on the Consolidated Balance Sheets
	Gross Amount Recognized		Financial Instruments (1)		Collateral Received/Pledged (2)		Net Amount		Securities Collateral Received/Pledged (3)		Net Amount After Securities Collateral
	(In millions)
September 30, 2023
Derivative assets	$	2,735	$	(2,028)	$	(688)	$	19	$	(6)	$	13
Derivative liabilities	$	5,214	$	(2,028)	$	—	$	3,186	$	(3,186)	$	—
December 31, 2022
Derivative assets	$	2,308	$	(1,659)	$	(640)	$	9	$	(6)	$	3
Derivative liabilities	$	3,919	$	(1,659)	$	(7)	$	2,253	$	(2,251)	$	2

_______________

(1)Represents amounts subject to an enforceable master netting agreement or similar agreement.

(2)The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement.

(3)Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received.

Schedule of Derivative Instruments

The aggregate estimated fair values of derivatives in a net liability position containing such credit-contingent provisions and the aggregate estimated fair value of assets posted as collateral for such instruments were as follows at:

	September 30, 2023		December 31, 2022
	(In millions)
Estimated fair value of derivatives in a net liability position (1)	$	3,186	$	2,260
Estimated fair value of collateral provided (2):
Fixed maturity securities	$	5,567	$	4,894

_______________

(1)After taking into consideration the existence of netting agreements.

(2)Substantially all of the Company’s collateral arrangements provide for daily posting of collateral for the full value of the derivative contract. As a result, if the credit-contingent provisions of derivative contracts in a net liability position were triggered, minimal additional assets would be required to be posted as collateral or needed to settle the instruments immediately. Additionally, the Company is required to pledge initial margin for certain new over-the-counter (“OTC”) bilateral contracts between two counterparties (“OTC-bilateral”) derivative transactions to third-party custodians.

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Fair Value (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Recurring Fair Value Measurements

The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented in the tables below. Investments that do not have a readily determinable fair value and are measured at net asset value (or equivalent) as a practical expedient to estimated fair value are excluded from the fair value hierarchy.

	September 30, 2023
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	32,086	$	824	$	32,910
Foreign corporate	—		10,362		316		10,678
U.S. government and agency	3,658		4,144		—		7,802
RMBS	—		7,041		10		7,051
CMBS	—		6,272		36		6,308
ABS	—		5,815		299		6,114
State and political subdivision	—		3,604		—		3,604
Foreign government	—		933		33		966
Total fixed maturity securities	3,658		70,257		1,518		75,433
Equity securities	39		26		25		90
Short-term investments	675		328		—		1,003
Derivative assets: (1)
Interest rate	—		447		—		447
Foreign currency exchange rate	—		589		13		602
Credit	—		14		7		21
Equity market	—		1,439		7		1,446
Total derivative assets	—		2,489		27		2,516
Market risk benefit assets	—		—		694		694
Separate account assets	16		82,659		—		82,675
Total assets	$	4,388	$	155,759	$	2,264	$	162,411
Liabilities
Market risk benefit liabilities	$	—	$	—	$	8,830	$	8,830
Derivative liabilities: (1)
Interest rate	—		3,478		—		3,478
Foreign currency exchange rate	—		15		—		15
Credit	—		—		1		1
Equity market	—		1,497		—		1,497
Total derivative liabilities	—		4,990		1		4,991
Embedded derivatives on index-linked annuities (2)	—		—		6,031		6,031
Total liabilities	$	—	$	4,990	$	14,862	$	19,852

	December 31, 2022
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	31,418	$	1,189	$	32,607
Foreign corporate	—		9,978		598		10,576
U.S. government and agency	3,566		4,450		—		8,016
RMBS	—		7,514		14		7,528
CMBS	—		6,578		33		6,611
ABS	—		5,041		318		5,359
State and political subdivision	—		3,799		—		3,799
Foreign government	—		1,043		38		1,081
Total fixed maturity securities	3,566		69,821		2,190		75,577
Equity securities	35		27		27		89
Short-term investments	722		359		—		1,081
Derivative assets: (1)
Interest rate	—		304		—		304
Foreign currency exchange rate	—		716		29		745
Credit	—		10		8		18
Equity market	—		1,217		—		1,217
Total derivative assets	—		2,247		37		2,284
Market risk benefit assets	—		—		483		483
Separate account assets	29		84,936		—		84,965
Total assets	$	4,352	$	157,390	$	2,737	$	164,479
Liabilities
Market risk benefit liabilities	$	—	$	—	$	10,389	$	10,389
Derivative liabilities: (1)
Interest rate	—		2,802		—		2,802
Foreign currency exchange rate	—		18		—		18
Credit	—		—		2		2
Equity market	—		1,098		—		1,098
Total derivative liabilities	—		3,918		2		3,920
Embedded derivatives on index-linked annuities (2)	—		—		3,932		3,932
Total liabilities	$	—	$	3,918	$	14,323	$	18,241

_______________

(1)Derivative assets are reported in other invested assets and derivative liabilities are reported in other liabilities. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets.

(2)Embedded derivative liabilities on index-linked annuities are reported in policyholder account balances.

Fair Value Measurement Inputs and Valuation Techniques

Certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows at:

					September 30, 2023			December 31, 2022			Impact of Increase in Input on Estimated Fair Value
	Valuation Techniques		Significant Unobservable Inputs		Range			Range
Market Risk Benefits
Variable annuity guaranteed minimum benefits	•	Option pricing techniques	•	Mortality rates	0.04%	-	12.90%	0.04%	-	12.90%	Decrease (1)
			•	Lapse rates	1.00%	-	22.80%	1.00%	-	24.11%	Decrease (2)
			•	Utilization rates	0.00%	-	25.00%	0.00%	-	25.00%	Increase (3)
			•	Withdrawal rates	0.00%	-	10.00%	0.00%	-	10.00%	(4)
			•	Long-term equity volatilities	15.27%	-	23.76%	19.99%	-	28.45%	Increase (5)
			•	Nonperformance risk spread	0.85%	-	1.83%	(2.73)%	-	4.52%	Decrease (6)
Embedded Derivatives
Index-linked annuity crediting rates	•	Option pricing techniques	•	Mortality rates	0.03%	-	9.24%	0.03%	-	9.24%	Decrease (1)
			•	Lapse rates	1.00%	-	62.30%	1.00%	-	62.30%	Decrease (2)
			•	Withdrawal rates	0.50%	-	9.00%	0.50%	-	9.00%	(4)
			•	Nonperformance risk spread	0.58%	-	1.77%	0.00%	-	1.98%	Decrease (6)

_______________

(1)Mortality rates vary by age and by demographic characteristics such as gender. The range shown reflects the mortality rate for policyholders between 35 and 90 years old. Mortality rate assumptions are set based on company experience and include an assumption for mortality improvement.

(2)The lapse rate range reflects base lapse rates for major product categories for duration 1-20. Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. For variable annuity guarantees, a dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in-the-money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies.

(3)The utilization rate assumption for variable annuity guarantees estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible in a given year. The range shown represents the floor and cap of the GMIB dynamic election rates across varying levels of in-the-money. For lifetime withdrawal guarantee riders, the assumption is that everyone will begin withdrawals once account value reaches zero which is equivalent to a 100% utilization rate. Utilization rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder.

(4)The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For variable annuity GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For variable annuity GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.

(5)Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing MRBs.

(6)Nonperformance risk spread varies by duration. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the MRB or embedded derivative.

Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation

The changes in assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (excluding MRBs disclosed in Note 4) were summarized as follows:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	Corporate (1)		Structured Securities		Foreign Government		Equity Securities		Short-term Investments		Net Derivatives (2)		Embedded Derivatives on Index-Linked Annuities
	(In millions)
Three Months Ended September 30, 2023
Balance, beginning of period	$	1,931	$	371	$	38	$	25	$	—	$	27	$	(6,886)
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	(9)		—		—		—		—		2		913
Total realized/unrealized gains (losses) included in AOCI	(19)		(2)		(1)		—		—		(3)		—
Purchases (5)	32		17		—		—		—		—		—
Sales (5)	(56)		(11)		(1)		—		—		—		—
Issuances (5)	—		—		—		—		—		—		—
Settlements (5)	—		—		—		—		—		—		(58)
Transfers into Level 3 (6)	45		12		—		—		—		—		—
Transfers out of Level 3 (6)	(784)		(42)		(3)		—		—		—		—
Balance, end of period	$	1,140	$	345	$	33	$	25	$	—	$	26	$	(6,031)
Three Months Ended September 30, 2022
Balance, beginning of period	$	1,710	$	345	$	40	$	27	$	—	$	38	$	(2,831)
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	—		—		—		1		—		3		518
Total realized/unrealized gains (losses) included in AOCI	(108)		(11)		(4)		—		—		21		—
Purchases (5)	278		125		—		—		—		—		—
Sales (5)	(22)		(1)		(1)		—		—		—		—
Issuances (5)	—		—		—		—		—		—		—
Settlements (5)	—		—		—		—		—		—		(29)
Transfers into Level 3 (6)	16		19		—		—		—		—		—
Transfers out of Level 3 (6)	(319)		(138)		—		—		—		—		—
Balance, end of period	$	1,555	$	339	$	35	$	28	$	—	$	62	$	(2,342)
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2023 (7)	$	(9)	$	—	$	—	$	1	$	—	$	3	$	785
Changes in unrealized gains (losses) included in OCI for the instruments still held as of September 30, 2023 (7)	$	(25)	$	(3)	$	(1)	$	—	$	—	$	(3)	$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2022 (7)	$	—	$	—	$	—	$	1	$	—	$	3	$	461
Changes in unrealized gains (losses) included in OCI for the instruments still held as of September 30, 2022 (7)	$	(109)	$	(11)	$	(4)	$	—	$	—	$	21	$	—

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	Corporate (1)		Structured Securities		Foreign Government		Equity Securities		Short-term Investments		Net Derivatives (2)		Embedded Derivatives on Index-Linked Annuities
	(In millions)
Nine Months Ended September 30, 2023
Balance, beginning of period	$	1,787	$	365	$	38	$	27	$	—	$	35	$	(3,932)
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	(12)		—		—		(3)		—		(3)		(1,880)
Total realized/unrealized gains (losses) included in AOCI	(11)		(2)		—		—		—		(3)		—
Purchases (5)	119		45		—		1		—		9		—
Sales (5)	(126)		(17)		(2)		—		—		—		—
Issuances (5)	—		—		—		—		—		—		—
Settlements (5)	—		—		—		—		—		—		(219)
Transfers into Level 3 (6)	101		10		—		—		—		—		—
Transfers out of Level 3 (6)	(718)		(56)		(3)		—		—		(12)		—
Balance, end of period	$	1,140	$	345	$	33	$	25	$	—	$	26	$	(6,031)
Nine Months Ended September 30, 2022
Balance, beginning of period	$	1,399	$	220	$	26	$	13	$	2	$	36	$	(6,641)
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	(6)		—		—		1		—		(11)		4,106
Total realized/unrealized gains (losses) included in AOCI	(286)		(23)		(13)		—		—		36		—
Purchases (5)	760		230		5		14		—		1		—
Sales (5)	(159)		(12)		(2)		—		(2)		—		—
Issuances (5)	—		—		—		—		—		—		—
Settlements (5)	—		—		—		—		—		—		193
Transfers into Level 3 (6)	31		25		19		—		—		—		—
Transfers out of Level 3 (6)	(184)		(101)		—		—		—		—		—
Balance, end of period	$	1,555	$	339	$	35	$	28	$	—	$	62	$	(2,342)
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2023 (7)	$	(11)	$	—	$	—	$	(2)	$	—	$	(2)	$	(2,183)
Changes in unrealized gains (losses) included in OCI for the instruments still held as of September 30, 2023 (7)	$	(20)	$	(3)	$	—	$	—	$	—	$	(3)	$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2022 (7)	$	—	$	—	$	—	$	1	$	—	$	(4)	$	3,904
Changes in unrealized gains (losses) included in OCI for the instruments still held as of September 30, 2022 (7)	$	(288)	$	(23)	$	(13)	$	—	$	—	$	36	$	—

_______________

(1)Comprised of U.S. and foreign corporate securities.

(2)Freestanding derivative assets and liabilities are reported net for purposes of the rollforward.

(3)Amortization of premium/accretion of discount is included in net investment income. Changes in the allowance for credit losses and direct write-offs are charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(4)Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.

(5)Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements.

(6)Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and out of Level 3 in the same period are excluded from the rollforward.

(7)Changes in unrealized gains (losses) included in net income (loss) for fixed maturities are reported in either net investment income or net investment gains (losses). Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

Fair Value of Financial Instruments Carried at Other Than Fair Value

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:

	September 30, 2023
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	22,682	$	—	$	—	$	20,010	$	20,010
Policy loans	$	1,311	$	—	$	507	$	858	$	1,365
Other invested assets	$	259	$	—	$	247	$	12	$	259
Premiums, reinsurance and other receivables	$	7,134	$	—	$	64	$	7,141	$	7,205
Liabilities
Policyholder account balances	$	31,509	$	—	$	—	$	30,470	$	30,470
Long-term debt	$	3,157	$	—	$	2,591	$	—	$	2,591
Other liabilities	$	1,124	$	—	$	436	$	688	$	1,124
Separate account liabilities	$	1,063	$	—	$	1,063	$	—	$	1,063

	December 31, 2022
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	22,936	$	—	$	—	$	20,816	$	20,816
Policy loans	$	1,282	$	—	$	515	$	878	$	1,393
Other invested assets	$	213	$	—	$	201	$	12	$	213
Premiums, reinsurance and other receivables	$	6,080	$	—	$	89	$	6,141	$	6,230
Liabilities
Policyholder account balances	$	31,887	$	—	$	—	$	30,942	$	30,942
Long-term debt	$	3,156	$	—	$	2,703	$	—	$	2,703
Other liabilities	$	943	$	—	$	248	$	695	$	943
Separate account liabilities	$	1,024	$	—	$	1,024	$	—	$	1,024

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Equity (Tables)

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Preferred Stock Authorized, Issued and Outstanding

Preferred stock shares authorized, issued and outstanding were as follows at both September 30, 2023 and December 31, 2022:

	Shares Authorized	Shares Issued	Shares Outstanding
6.600% Non-Cumulative Preferred Stock, Series A	17,000	17,000	17,000
6.750% Non-Cumulative Preferred Stock, Series B	16,100	16,100	16,100
5.375% Non-Cumulative Preferred Stock, Series C	23,000	23,000	23,000
4.625% Non-Cumulative Preferred Stock, Series D	14,000	14,000	14,000
Not designated	99,929,900	—	—
Total	100,000,000	70,100	70,100

Preferred Stock Dividends Declared

The per share and aggregate dividends declared for BHF’s preferred stock by series were as follows:

	Three Months Ended September 30,								Nine Months Ended September 30,
	2023				2022				2023				2022
Series	Per Share		Aggregate		Per Share		Aggregate		Per Share		Aggregate		Per Share		Aggregate
	(In millions, except per share data)								(In millions, except per share data)
A	$	412.50	$	7	$	412.50	$	7	$	1,237.50	$	21	$	1,237.50	$	21
B	$	421.88	7		$	421.88	7		$	1,265.64	21		$	1,265.64	21
C	$	335.94	8		$	335.94	7		$	1,007.82	23		$	1,007.82	23
D	$	289.06	4		$	289.06	4		$	867.18	12		$	973.17	13
Total			$	26			$	25			$	77			$	78

Components of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Information regarding changes in the balances of each component of AOCI was as follows:

	Three Months Ended September 30, 2023
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Changes in Nonperformance Risk on Market Risk Benefits		Changes in Discount Rates on the Liability for Future Policy Benefits		Other (2)		Total
	(In millions)
Balance at June 30, 2023	$	(5,689)	$	430	$	(1,475)	$	905	$	(52)	$	(5,881)
OCI before reclassifications	(2,490)		(33)		174		744		(8)		(1,613)
Deferred income tax benefit (expense) (3)	523		8		(37)		(157)		2		339
AOCI before reclassifications, net of income tax	(7,656)		405		(1,338)		1,492		(58)		(7,155)
Amounts reclassified from AOCI	55		(2)		—		—		(2)		51
Deferred income tax benefit (expense) (3)	(12)		—		—		—		—		(12)
Amounts reclassified from AOCI, net of income tax	43		(2)		—		—		(2)		39
Balance at September 30, 2023	$	(7,613)	$	403	$	(1,338)	$	1,492	$	(60)	$	(7,116)

	Three Months Ended September 30, 2022
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Changes in Nonperformance Risk on Market Risk Benefits		Changes in Discount Rates on the Liability for Future Policy Benefits		Other (2)		Total
	(In millions)
Balance at June 30, 2022	$	(3,727)	$	534	$	(1,350)	$	441	$	(74)	$	(4,176)
OCI before reclassifications	(5,130)		333		130		1,045		(23)		(3,645)
Deferred income tax benefit (expense) (3)	1,209		(202)		(27)		(219)		5		766
AOCI before reclassifications, net of income tax	(7,648)		665		(1,247)		1,267		(92)		(7,055)
Amounts reclassified from AOCI	60		(9)		—		—		—		51
Deferred income tax benefit (expense) (3)	(13)		2		—		—		—		(11)
Amounts reclassified from AOCI, net of income tax	47		(7)		—		—		—		40
Balance at September 30, 2022	$	(7,601)	$	658	$	(1,247)	$	1,267	$	(92)	$	(7,015)

	Nine Months Ended September 30, 2023
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Changes in Nonperformance Risk on Market Risk Benefits		Changes in Discount Rates on the Liability for Future Policy Benefits		Other (2)		Total
	(In millions)
Balance at December 31, 2022	$	(6,194)	$	504	$	(1,378)	$	1,020	$	(58)	$	(6,106)
OCI before reclassifications	(1,971)		(123)		51		598		(5)		(1,450)
Deferred income tax benefit (expense) (3)	414		27		(11)		(126)		1		305
AOCI before reclassifications, net of income tax	(7,751)		408		(1,338)		1,492		(62)		(7,251)
Amounts reclassified from AOCI	175		(6)		—		—		3		172
Deferred income tax benefit (expense) (3)	(37)		1		—		—		(1)		(37)
Amounts reclassified from AOCI, net of income tax	138		(5)		—		—		2		135
Balance at September 30, 2023	$	(7,613)	$	403	$	(1,338)	$	1,492	$	(60)	$	(7,116)

	Nine Months Ended September 30, 2022
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Changes in Nonperformance Risk on Market Risk Benefits		Changes in Discount Rates on the Liability for Future Policy Benefits		Other (2)		Total
	(In millions)
Balance at December 31, 2021	$	5,285	$	239	$	(3,230)	$	(2,199)	$	(48)	$	47
OCI before reclassifications	(16,565)		617		2,510		4,388		(59)		(9,109)
Deferred income tax benefit (expense) (3)	3,534		(185)		(527)		(922)		13		1,913
AOCI before reclassifications, net of income tax	(7,746)		671		(1,247)		1,267		(94)		(7,149)
Amounts reclassified from AOCI	184		(16)		—		—		2		170
Deferred income tax benefit (expense) (3)	(39)		3		—		—		—		(36)
Amounts reclassified from AOCI, net of income tax	145		(13)		—		—		2		134
Balance at September 30, 2022	$	(7,601)	$	658	$	(1,247)	$	1,267	$	(92)	$	(7,015)

__________________

(1)See Note 6 for information on offsets to investments related to future policy benefits.

(2)Includes OCI related to foreign currency translation and defined benefit plan gains and losses.

(3)The effects of income taxes on amounts recorded to AOCI are also recognized in AOCI. These income tax effects are released from AOCI when the related activity is reclassified into results from operations.

Reclassification out of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Information regarding amounts reclassified out of each component of AOCI was as follows:

AOCI Components	Amounts Reclassified from AOCI								Consolidated Statements of Operations and Comprehensive Income (Loss) Locations
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)	$	(43)	$	(39)	$	(157)	$	(133)	Net investment gains (losses)
Net unrealized investment gains (losses)	(12)		(21)		(18)		(51)		Net derivative gains (losses)
Net unrealized investment gains (losses), before income tax	(55)		(60)		(175)		(184)
Income tax (expense) benefit	12		13		37		39
Net unrealized investment gains (losses), net of income tax	(43)		(47)		(138)		(145)
Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate swaps	—		—		(2)		4		Net derivative gains (losses)
Interest rate swaps	1		1		3		3		Net investment income
Foreign currency swaps	1		8		5		9		Net derivative gains (losses)
Gains (losses) on cash flow hedges, before income tax	2		9		6		16
Income tax (expense) benefit	—		(2)		(1)		(3)
Gains (losses) on cash flow hedges, net of income tax	2		7		5		13
Defined benefit plans adjustment:
Amortization of net actuarial gains (losses)	2		—		(3)		(2)
Amortization of defined benefit plans, before income tax	2		—		(3)		(2)
Income tax (expense) benefit	—		—		1		—
Amortization of defined benefit plans, net of income tax	2		—		(2)		(2)
Total reclassifications, net of income tax	$	(39)	$	(40)	$	(135)	$	(134)

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Other Revenues and Other Expenses (Tables)

9 Months Ended

Sep. 30, 2023

Other Income and Expenses [Abstract]

Other Expenses

Information on other expenses was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Compensation	$	98	$	89	$	302	$	254
Contracted services and other labor costs	73		73		221		197
Transition services agreements	7		15		26		44
Establishment costs	—		21		—		47
Premium and other taxes, licenses and fees	15		13		49		41
Separate account fees	93		98		277		314
Volume related costs, excluding compensation, net of DAC capitalization	129		130		409		374
Interest expense on debt	38		38		114		114
Other	20		18		55		211
Total other expenses	$	473	$	495	$	1,453	$	1,596

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Earnings Per Common Share (Tables)

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Common Share

The calculation of earnings per common share was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions, except share and per share data)
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders	$	453	$	388	$	(272)	$	3,665
Weighted average common shares outstanding — basic	65,408,241		71,517,500		66,658,796		74,294,329
Dilutive effect of share-based awards	336,110		441,880		—		482,846
Weighted average common shares outstanding — diluted	65,744,351		71,959,380		66,658,796		74,777,175
Earnings per common share:
Basic	$	6.92	$	5.42	$	(4.08)	$	49.31
Diluted	$	6.89	$	5.39	$	(4.08)	$	49.00

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Business, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($) Segment	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of Reportable Segments | Segment	3
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ (4,134)	$ (4,972)	$ (5,598)	$ (4,666)	$ (7,246)	$ (8,450)
Retained Earnings (Deficit)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest							$ 5,400
AOCI Attributable to Parent
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest							$ 3,900

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Effect of Transition Adjustments on Stockholders’ Equity, ASU 2018-12 Transition (Details) - USD ($) $ in Millions	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Jan. 01, 2021	Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Liability for Future Policy Benefit, before Reinsurance	$ 30,404			$ 32,016
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net	4,919		$ 5,084
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 4,134	$ 4,972	$ 5,598	$ 4,666	$ 7,246	$ 8,450
Retained Earnings (Deficit)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest								$ (5,400)
Retained Earnings (Deficit) | Accounting Standards Update 2018-12
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Liability for Future Policy Benefit, before Reinsurance							$ (436)
Market risk benefits and related adjustments							(6,237)
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net							0
Reinsurance Recoverables, Including Reinsurance Premium Paid							(141)
Deferred income tax liability							1,431
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest							(5,383)
AOCI Attributable to Parent
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest								$ (3,900)
AOCI Attributable to Parent | Accounting Standards Update 2018-12
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Liability for Future Policy Benefit, before Reinsurance							(2,073)
Market risk benefits and related adjustments							(3,454)
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net							520
Reinsurance Recoverables, Including Reinsurance Premium Paid							34
Deferred income tax liability							1,044
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest							$ (3,929)

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Changes in LFPBs, ASU 2018-12 Transition (Details) - USD ($) $ in Millions	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Jan. 01, 2022	Dec. 31, 2021	Jan. 01, 2021	Dec. 31, 2020
Liability for Future Policy Benefit, Activity [Line Items]
Accumulated other comprehensive income (loss)	$ (7,116)	$ (5,881)	$ (6,106)	$ (7,015)	$ (4,176)		$ 47
Future policy benefits	30,404		31,497				39,990
Previously Reported
Liability for Future Policy Benefit, Activity [Line Items]
Accumulated other comprehensive income (loss)			(5,424)				4,172
Future policy benefits			41,569				43,807
Accounting Standards Update 2018-12 | Revision of Prior Period, Accounting Standards Update, Adjustment
Liability for Future Policy Benefit, Activity [Line Items]
Accumulated other comprehensive income (loss)			(682)				(4,125)
Future policy benefits			(10,072)				(3,817)
Term and Whole Life Insurance
Liability for Future Policy Benefit, Activity [Line Items]
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted, before Reinsurance	8,378			8,264
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Cash Flow Change			309			$ 157	159	$ 70
Liability for Future Policy Benefit, Expected Future Policy Benefit, before Reinsurance, after Discount Rate Change	5,184		5,279	5,253			6,426		$ 6,852
Liability for Future Policy Benefit, Reinsurance Recoverable, after Allowance	41		45	49			64
Future policy benefits	$ 2,309		$ 2,363	$ 2,339			$ 3,037
Term and Whole Life Insurance | Accounting Standards Update 2018-12
Liability for Future Policy Benefit, Activity [Line Items]
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted, before Reinsurance								3,404
Liability for Future Policy Benefit, Reinsurance Recoverable, after Allowance								85
Future policy benefits								3,319
Term and Whole Life Insurance | Accounting Standards Update 2018-12 | Previously Reported
Liability for Future Policy Benefit, Activity [Line Items]
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted, before Reinsurance									2,854
Term and Whole Life Insurance | Accounting Standards Update 2018-12 | Revision of Prior Period, Accounting Standards Update, Adjustment
Liability for Future Policy Benefit, Activity [Line Items]
Accumulated other comprehensive income (loss)								0
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Cash Flow Change								14
Deferred Profit Liabilities								0
Liability for Future Policy Benefit, Expected Future Policy Benefit, before Reinsurance, after Discount Rate Change								536
Income Annuity [Domain] | Accounting Standards Update 2018-12
Liability for Future Policy Benefit, Activity [Line Items]
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted, before Reinsurance								4,867
Liability for Future Policy Benefit, Reinsurance Recoverable, after Allowance								29
Future policy benefits								4,838
Income Annuity [Domain] | Accounting Standards Update 2018-12 | Previously Reported
Liability for Future Policy Benefit, Activity [Line Items]
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted, before Reinsurance									4,311
Income Annuity [Domain] | Accounting Standards Update 2018-12 | Revision of Prior Period, Accounting Standards Update, Adjustment
Liability for Future Policy Benefit, Activity [Line Items]
Accumulated other comprehensive income (loss)								(203)
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Cash Flow Change								(171)
Deferred Profit Liabilities								176
Liability for Future Policy Benefit, Expected Future Policy Benefit, before Reinsurance, after Discount Rate Change								754
Structured Settlement and Pension Risk Transfer Annuities [Domain] | Accounting Standards Update 2018-12
Liability for Future Policy Benefit, Activity [Line Items]
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted, before Reinsurance								11,518
Liability for Future Policy Benefit, Reinsurance Recoverable, after Allowance								102
Future policy benefits								11,416
Structured Settlement and Pension Risk Transfer Annuities [Domain] | Accounting Standards Update 2018-12 | Previously Reported
Liability for Future Policy Benefit, Activity [Line Items]
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted, before Reinsurance									$ 10,115
Structured Settlement and Pension Risk Transfer Annuities [Domain] | Accounting Standards Update 2018-12 | Revision of Prior Period, Accounting Standards Update, Adjustment
Liability for Future Policy Benefit, Activity [Line Items]
Accumulated other comprehensive income (loss)								(1,784)
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Cash Flow Change								200
Deferred Profit Liabilities								217
Liability for Future Policy Benefit, Expected Future Policy Benefit, before Reinsurance, after Discount Rate Change								$ 2,770

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Changes in liabilities classified as MRBs, ASU 2018-12 Transition (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended		12 Months Ended
	Jan. 01, 2021	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Market Risk Benefit [Line Items]
Market risk benefit liabilities		$ 8,830		$ 8,830		$ 10,389	$ 16,034
Change in market risk benefits		1,064	$ 984	2,170	$ 2,625	(4,104)	(4,134)
Previously Reported
Market Risk Benefit [Line Items]
Market risk benefit liabilities						0	0
Change in market risk benefits						0	0
Variable Annuities
Market Risk Benefit [Line Items]
Market risk benefit liabilities	$ 18,388
Market Risk Benefit, before Reinsurance and Cumulative Increase (Decrease) from Instrument-Specific Credit Risk Change		6,488	9,519	6,488	9,519	8,230	11,611	$ 14,934
Market Risk Benefit, Reinsurance Recoverable, after Allowance	169	35	76	35	76	71	118
Market Risk Benefit, after Reinsurance and Cumulative Increase (Decrease) from Instrument-Specific Credit Risk Change	18,219	$ 8,143	$ 11,023	$ 8,143	$ 11,023	$ 9,903	$ 15,580
Variable Annuities | Previously Reported
Market Risk Benefit [Line Items]
Market risk benefit liabilities								$ 8,924
Variable Annuities | Revision of Prior Period, Accounting Standards Update, Adjustment
Market Risk Benefit [Line Items]
Change in market risk benefits	6,010
Market Risk Benefit, before Reinsurance and Cumulative Increase (Decrease) from Instrument-Specific Credit Risk Change	$ 3,454

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Changes in DAC and VOBA, ASU 2018-12 Transition (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021	Jan. 01, 2021	Dec. 31, 2020
Variable Annuities
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost	$ 2,352	$ 2,508	$ 2,566	$ 2,718		$ 2,912
Present Value of Future Insurance Profits, Net	317	341	350	377		428
Variable Annuities | Accounting Standards Update 2018-12
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost					$ 2,912
Present Value of Future Insurance Profits, Net					428
Variable Annuities | Accounting Standards Update 2018-12 | Previously Reported
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost						2,440
Present Value of Future Insurance Profits, Net						363
Variable Annuities | AOCI Attributable to Parent | Accounting Standards Update 2018-12 | Revision of Prior Period, Accounting Standards Update, Adjustment
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost					472
Present Value of Future Insurance Profits, Net					65
Fixed Rate Annuities
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost	108	107	99	89		64
Present Value of Future Insurance Profits, Net	61	65	66	70		76
Fixed Rate Annuities | Accounting Standards Update 2018-12
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost					64
Present Value of Future Insurance Profits, Net					76
Fixed Rate Annuities | Accounting Standards Update 2018-12 | Previously Reported
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost						64
Present Value of Future Insurance Profits, Net						76
Fixed Rate Annuities | AOCI Attributable to Parent | Accounting Standards Update 2018-12 | Revision of Prior Period, Accounting Standards Update, Adjustment
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost					0
Present Value of Future Insurance Profits, Net					0
Index-linked Annuities
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost	1,301	1,213	1,188	1,081		886
Present Value of Future Insurance Profits, Net	0	0	0	0		0
Index-linked Annuities | Accounting Standards Update 2018-12
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost					886
Present Value of Future Insurance Profits, Net					0
Index-linked Annuities | Accounting Standards Update 2018-12 | Previously Reported
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost						886
Present Value of Future Insurance Profits, Net						0
Index-linked Annuities | AOCI Attributable to Parent | Accounting Standards Update 2018-12 | Revision of Prior Period, Accounting Standards Update, Adjustment
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost					0
Present Value of Future Insurance Profits, Net					0
Term and Whole Life Insurance
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost	366	405	417	462		527
Present Value of Future Insurance Profits, Net	4	5	5	6		8
Term and Whole Life Insurance | Accounting Standards Update 2018-12
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost					527
Present Value of Future Insurance Profits, Net					8
Term and Whole Life Insurance | Accounting Standards Update 2018-12 | Previously Reported
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost						527
Present Value of Future Insurance Profits, Net						8
Term and Whole Life Insurance | AOCI Attributable to Parent | Accounting Standards Update 2018-12 | Revision of Prior Period, Accounting Standards Update, Adjustment
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost					0
Present Value of Future Insurance Profits, Net					0
Universal Life Insurance
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost	366	392	401	431		469
Present Value of Future Insurance Profits, Net	$ 44	$ 48	$ 50	$ 54		61
Universal Life Insurance | Accounting Standards Update 2018-12
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost					469
Present Value of Future Insurance Profits, Net					61
Universal Life Insurance | Accounting Standards Update 2018-12 | Previously Reported
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost						492
Present Value of Future Insurance Profits, Net						$ 55
Universal Life Insurance | AOCI Attributable to Parent | Accounting Standards Update 2018-12 | Revision of Prior Period, Accounting Standards Update, Adjustment
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Deferred Policy Acquisition Cost					(23)
Present Value of Future Insurance Profits, Net					$ 6

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ASU 2018-12 Transition BS (Details) - USD ($) $ in Millions	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Condensed Balance Sheet Statements, Captions [Line Items]
Total assets	$ 223,516		$ 224,847			$ 262,257
Future policy benefits	30,404		31,497			39,990
Policyholder Contract Deposit	78,371		73,527			65,249
Market risk benefit liabilities	8,830		10,389			16,034
Total liabilities	219,382		219,249			253,807
Retained earnings (deficit)	(590)		(395)			(4,274)
Accumulated other comprehensive income (loss)	(7,116)	$ (5,881)	(6,106)	$ (7,015)	$ (4,176)	47
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	4,134	$ 4,972	5,598	$ 4,666	$ 7,246	8,450
Liabilities and Equity	$ 223,516		224,847			262,257
Previously Reported
Condensed Balance Sheet Statements, Captions [Line Items]
Total assets			225,580			259,840
Future policy benefits			41,569			43,807
Policyholder Contract Deposit			74,836			66,851
Market risk benefit liabilities			0			0
Total liabilities			219,542			243,633
Retained earnings (deficit)			(637)			(642)
Accumulated other comprehensive income (loss)			(5,424)			4,172
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest			6,038			16,207
Liabilities and Equity			225,580			259,840
Revision of Prior Period, Accounting Standards Update, Adjustment | Accounting Standards Update 2018-12
Condensed Balance Sheet Statements, Captions [Line Items]
Total assets			(733)			2,417
Future policy benefits			(10,072)			(3,817)
Policyholder Contract Deposit			(1,309)			(1,602)
Market risk benefit liabilities			10,389			16,034
Total liabilities			(293)			10,174
Retained earnings (deficit)			242			(3,632)
Accumulated other comprehensive income (loss)			(682)			(4,125)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest			(440)			(7,757)
Liabilities and Equity			$ (733)			$ 2,417

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ASU 2018-12 Transition IS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Condensed Income Statements, Captions [Line Items]
Insurance Commissions and Fees	$ 542	$ 597			$ 1,749	$ 1,886	$ 2,435	$ 2,980
Net derivative gains (losses)	(840)	(592)			(3,226)	1,331	(592)	(3,983)
Total revenues	1,170	1,121			2,717	7,000	6,873	4,976
Policyholder Benefits and Claims Incurred, Net	590	534			1,966	1,926	2,193	2,746
Change in market risk benefits	1,064	984			2,170	2,625	(4,104)	(4,134)
Benefits, Losses and Expenses	580	609			3,017	2,308	2,141	2,967
Post-tax adjusted earnings	$ 481	$ 415	$ (672)	$ 3,332	$ (191)	$ 3,747	3,884	1,648
Previously Reported
Condensed Income Statements, Captions [Line Items]
Insurance Commissions and Fees							3,141	3,636
Net derivative gains (losses)							304	(2,469)
Total revenues							8,473	7,142
Policyholder Benefits and Claims Incurred, Net							4,165	3,443
Change in market risk benefits							0	0
Benefits, Losses and Expenses							8,645	7,350
Post-tax adjusted earnings							10	(103)
Revision of Prior Period, Accounting Standards Update, Adjustment | Accounting Standards Update 2018-12
Condensed Income Statements, Captions [Line Items]
Insurance Commissions and Fees							(706)	(656)
Net derivative gains (losses)							(896)	(1,514)
Total revenues							(1,600)	(2,166)
Policyholder Benefits and Claims Incurred, Net							(1,972)	(697)
Change in market risk benefits							(4,104)	(4,134)
Benefits, Losses and Expenses							(6,504)	(4,383)
Post-tax adjusted earnings							$ 3,874	$ 1,751

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Segment Information (Operating Results) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Pre-tax adjusted earnings	$ 590	$ 512			$ (300)	$ 4,692
Provision for income tax expense (benefit)	109	97			(109)	945
Post-tax adjusted earnings	481	415	$ (672)	$ 3,332	(191)	3,747	$ 3,884	$ 1,648
Less: Net income (loss) attributable to noncontrolling interests	2	2			4	4
Less: Preferred stock dividends	26	25			77	78
Net investment gains (losses)	(53)	(45)			(213)	(179)
Net derivative gains (losses)	(840)	(592)			(3,226)	1,331	(592)	(3,983)
Investment Hedge Adjustment	(1,202)	(877)			(3,457)	(3,089)
Change in market risk benefits	1,064	984			2,170	2,625	$ (4,104)	$ (4,134)
Market value adjustments	426	405			1,300	937
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders	453	388			(272)	3,665
Annuities
Segment Reporting Information [Line Items]
Interest revenue	652	547			1,879	1,648
Interest expense	0	0			0	0
Life
Segment Reporting Information [Line Items]
Interest revenue	115	77			334	352
Interest expense	0	0			0	0
Run-off
Segment Reporting Information [Line Items]
Interest revenue	300	168			870	919
Interest expense	0	0			0	0
Corporate & Other
Segment Reporting Information [Line Items]
Interest revenue	160	108			460	208
Interest expense	38	38			114	114
Operating Segments
Segment Reporting Information [Line Items]
Pre-tax adjusted earnings	429	168			1,046	863
Provision for income tax expense (benefit)	75	26			173	142
Post-tax adjusted earnings	354	142			873	721
Less: Net income (loss) attributable to noncontrolling interests	2	2			4	4
Less: Preferred stock dividends	26	25			77	78
Adjusted earnings	326	115			792	639
Operating Segments | Annuities
Segment Reporting Information [Line Items]
Pre-tax adjusted earnings	393	246			1,137	1,078
Provision for income tax expense (benefit)	74	44			213	202
Post-tax adjusted earnings	319	202			924	876
Less: Net income (loss) attributable to noncontrolling interests	0	0			0	0
Less: Preferred stock dividends	0	0			0	0
Adjusted earnings	319	202			924	876
Operating Segments | Life
Segment Reporting Information [Line Items]
Pre-tax adjusted earnings	(93)	(44)			(75)	75
Provision for income tax expense (benefit)	(20)	(10)			(18)	14
Post-tax adjusted earnings	(73)	(34)			(57)	61
Less: Net income (loss) attributable to noncontrolling interests	0	0			0	0
Less: Preferred stock dividends	0	0			0	0
Adjusted earnings	(73)	(34)			(57)	61
Operating Segments | Run-off
Segment Reporting Information [Line Items]
Pre-tax adjusted earnings	120	(20)			(35)	(189)
Provision for income tax expense (benefit)	25	(4)			(8)	(40)
Post-tax adjusted earnings	95	(16)			(27)	(149)
Less: Net income (loss) attributable to noncontrolling interests	0	0			0	0
Less: Preferred stock dividends	0	0			0	0
Adjusted earnings	95	(16)			(27)	(149)
Operating Segments | Corporate & Other
Segment Reporting Information [Line Items]
Pre-tax adjusted earnings	9	(14)			19	(101)
Provision for income tax expense (benefit)	(4)	(4)			(14)	(34)
Post-tax adjusted earnings	13	(10)			33	(67)
Less: Net income (loss) attributable to noncontrolling interests	2	2			4	4
Less: Preferred stock dividends	26	25			77	78
Adjusted earnings	(15)	(37)			(48)	(149)
Segment Reconciling Items
Segment Reporting Information [Line Items]
Provision for income tax expense (benefit)	(34)	(71)			282	(803)
Net investment gains (losses)	(53)	(45)			(213)	(179)
Net derivative gains (losses)	(865)	(615)			(3,312)	1,293
Investment Hedge Adjustment	(25)	(23)			(86)	(38)
Change in market risk benefits	1,064	984			2,170	2,625
Market value adjustments	$ 15	$ 20			$ 9	$ 90

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Segment Information (Reconciliation of Operating Revenues to Total Revenues) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total revenues	$ 1,170	$ 1,121	$ 2,717	$ 7,000	$ 6,873	$ 4,976
Segment Reconciling Items
Segment Reporting Information [Line Items]
Total revenues	(918)	(660)	(3,525)	1,114
Operating Segments | Annuities
Segment Reporting Information [Line Items]
Total revenues	1,214	1,091	3,630	3,422
Operating Segments | Life
Segment Reporting Information [Line Items]
Total revenues	299	270	915	922
Operating Segments | Run-off
Segment Reporting Information [Line Items]
Total revenues	413	312	1,241	1,334
Operating Segments | Corporate & Other
Segment Reporting Information [Line Items]
Total revenues	$ 162	$ 108	$ 456	$ 208

XML

Segment Information (Assets) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total assets	$ 223,516	$ 224,847	$ 262,257
Annuities
Segment Reporting Information [Line Items]
Total assets	151,734	151,192
Life
Segment Reporting Information [Line Items]
Total assets	22,221	22,057
Run-off
Segment Reporting Information [Line Items]
Total assets	27,272	28,436
Corporate & Other
Segment Reporting Information [Line Items]
Total assets	$ 22,289	$ 23,162

XML

Segment Information (Narrative) (Details)	9 Months Ended
	Sep. 30, 2023 Segment
Segment Reporting [Abstract]
Number of segments	3

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Insurance (Future Policy Benefits Information by Product) (Details) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Jan. 01, 2022	Jan. 01, 2021	Dec. 31, 2020
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Future Policy Benefit, before Reinsurance	$ 30,404	$ 32,016
Future policy benefits	30,404		$ 31,497	$ 39,990
Term and Whole Life Insurance
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Future Policy Benefit, Expected Net Premium, before Reinsurance, after Discount Rate Change	2,834	2,865	2,871	3,325			$ 3,448
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Cash Flow and Reinsurance	3,264	3,236	3,212	3,051			2,994
Liability for Future Policy Benefit, Expected Net Premium, Cumulative Increase (Decrease) from Model Refinements			0	122	$ 122	$ 0
Liability for Future Policy Benefit, Expected Net Premium, Cumulative Increase (Decrease) from Cash Flow Change			215	139	137	70
Liability for Future Policy Benefit, Expected Net Premium, Cumulative Increase (Decrease) of Actual Variance from Expected Experience			(36)	90	119	153
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Reinsurance, after Cash Flow Change			3,391	3,402	3,429	3,217
Liability for Future Policy Benefit, Expected Net Premium, Issuance	71	71	93	113
Liability for Future Policy Benefit, Expected Net Premium, Interest Income	83	87	116	111
Liability for Future Policy Benefit, Expected Net Premium, Net Premium Collected	(281)	(324)	(426)	(390)
AOCI, Liability for Future Policy Benefit, Expected Net Premium, before Tax	(430)	(371)	(341)	274
Liability for Future Policy Benefit, Expected Future Policy Benefit, before Reinsurance, after Discount Rate Change	5,184	5,253	5,279	6,426			6,852
Liability for Future Policy Benefit, Expected Future Policy Benefit, Original Discount Rate, before Cash Flow and Reinsurance	6,051	5,965	5,922	5,820			5,862
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Model Refinements	0	135	135	0
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Cash Flow Change			309	159	157	70
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) of Actual Variance from Expected Experience			(41)	119	155	153
Liability for Future Policy Benefit, Expected Future Benefit, Original Discount Rate, before Reinsurance, after Cash Flow Change			6,190	6,233	6,267	6,085
Liability for Future Policy Benefit, Expected Future Policy Benefit, Issuance	74	79	101	128
Liability for Future Policy Benefit, Expected Future Policy Benefit, Interest Expense	162	167	222	222
Liability for Future Policy Benefit, Expected Future Policy Benefit, Benefit Payment	(375)	(514)	(668)	(615)
AOCI, Liability for Future Policy Benefit, Expected Future Policy Benefit, before Tax	(867)	(712)	(643)	606
Liability for Future Policy Benefit, before Reinsurance	2,350	2,388	2,408	3,101
Liability for Future Policy Benefit, Reinsurance Recoverable, after Allowance	41	49	45	64
Future policy benefits	$ 2,309	$ 2,339	2,363	3,037
Liability for Future Policy Benefit, Weighted-Average Duration	8 years 9 months 18 days	8 years 6 months
Liability for Future Policy Benefit, Weighted-Average Interest Accretion Rate	3.95%	3.98%
Liability for Future Policy Benefit, Current Weighted-Average Discount Rate	5.87%	5.46%
Liability for Future Policy Benefit, Gross Premium Income	$ 451	$ 485
Liability for Future Policy Benefit, Expected Future Gross Premium, Undiscounted, before Reinsurance	6,261	6,842
Liability for Future Policy Benefit, Expected Future Gross Premium, Discounted, before Reinsurance	4,707	5,065
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted, before Reinsurance	8,378	8,264
Income Annuities
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Future Policy Benefit, Expected Net Premium, before Reinsurance, after Discount Rate Change	0	0	0	0			0
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Cash Flow and Reinsurance	0	0	0	0			0
Liability for Future Policy Benefit, Expected Net Premium, Cumulative Increase (Decrease) from Model Refinements			0	0	0	0
Liability for Future Policy Benefit, Expected Net Premium, Cumulative Increase (Decrease) from Cash Flow Change			0	0	0	0
Liability for Future Policy Benefit, Expected Net Premium, Cumulative Increase (Decrease) of Actual Variance from Expected Experience			0	0	0	0
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Reinsurance, after Cash Flow Change			0	0	0	0
Liability for Future Policy Benefit, Expected Net Premium, Issuance	0	0	0	0
Liability for Future Policy Benefit, Expected Net Premium, Interest Income	0	0	0	0
Liability for Future Policy Benefit, Expected Net Premium, Net Premium Collected	0	0	0	0
AOCI, Liability for Future Policy Benefit, Expected Net Premium, before Tax	0	0	0	0
Liability for Future Policy Benefit, Expected Future Policy Benefit, before Reinsurance, after Discount Rate Change	3,481	3,435	3,512	4,333			4,691
Liability for Future Policy Benefit, Expected Future Policy Benefit, Original Discount Rate, before Cash Flow and Reinsurance	3,995	3,851	3,897	3,865			3,938
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Model Refinements	0	0	0	0
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Cash Flow Change			0	0	56	(41)
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) of Actual Variance from Expected Experience			6	(23)	(22)	(6)
Liability for Future Policy Benefit, Expected Future Benefit, Original Discount Rate, before Reinsurance, after Cash Flow Change			3,903	3,842	3,899	3,891
Liability for Future Policy Benefit, Expected Future Policy Benefit, Issuance	281	168	224	198
Liability for Future Policy Benefit, Expected Future Policy Benefit, Interest Expense	107	108	146	150
Liability for Future Policy Benefit, Expected Future Policy Benefit, Benefit Payment	(296)	(267)	(372)	(374)
AOCI, Liability for Future Policy Benefit, Expected Future Policy Benefit, before Tax	(514)	(416)	(385)	468
Liability for Future Policy Benefit, before Reinsurance	3,481	3,435	3,512	4,333
Liability for Future Policy Benefit, Reinsurance Recoverable, after Allowance	30	24	24	27
Future policy benefits	$ 3,451	$ 3,411	3,488	4,306
Liability for Future Policy Benefit, Weighted-Average Duration	8 years 3 months 18 days	8 years 4 months 24 days
Liability for Future Policy Benefit, Weighted-Average Interest Accretion Rate	3.94%	3.89%
Liability for Future Policy Benefit, Current Weighted-Average Discount Rate	5.87%	5.44%
Liability for Future Policy Benefit, Gross Premium Income	$ 353	$ 195
Liability for Future Policy Benefit, Expected Future Gross Premium, Undiscounted, before Reinsurance	0	0
Liability for Future Policy Benefit, Expected Future Gross Premium, Discounted, before Reinsurance	0	0
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted, before Reinsurance	5,663	5,448
Structured Settlement and Pension Risk Transfer Annuities
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Future Policy Benefit, Expected Net Premium, before Reinsurance, after Discount Rate Change	0	0	0	0			0
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Cash Flow and Reinsurance	0	0	0	0			0
Liability for Future Policy Benefit, Expected Net Premium, Cumulative Increase (Decrease) from Model Refinements			0	0	0	0
Liability for Future Policy Benefit, Expected Net Premium, Cumulative Increase (Decrease) from Cash Flow Change			0	0	0	0
Liability for Future Policy Benefit, Expected Net Premium, Cumulative Increase (Decrease) of Actual Variance from Expected Experience			0	0	0	0
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Reinsurance, after Cash Flow Change			0	0	0	0
Liability for Future Policy Benefit, Expected Net Premium, Issuance	0	0	0	0
Liability for Future Policy Benefit, Expected Net Premium, Interest Income	0	0	0	0
Liability for Future Policy Benefit, Expected Net Premium, Net Premium Collected	0	0	0	0
AOCI, Liability for Future Policy Benefit, Expected Net Premium, before Tax	0	0	0	0
Liability for Future Policy Benefit, Expected Future Policy Benefit, before Reinsurance, after Discount Rate Change	6,192	7,049	6,793	10,171			11,301
Liability for Future Policy Benefit, Expected Future Policy Benefit, Original Discount Rate, before Cash Flow and Reinsurance	7,148	7,908	7,410	8,165			$ 8,531
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Model Refinements	0	0	(278)	0
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) from Cash Flow Change			0	0	(157)	(41)
Liability for Future Policy Benefit, Expected Future Policy Benefit, Cumulative Increase (Decrease) of Actual Variance from Expected Experience			(49)	(39)	(23)	(16)
Liability for Future Policy Benefit, Expected Future Benefit, Original Discount Rate, before Reinsurance, after Cash Flow Change			7,361	8,126	$ 7,707	$ 8,474
Liability for Future Policy Benefit, Expected Future Policy Benefit, Issuance	0	0	0	0
Liability for Future Policy Benefit, Expected Future Policy Benefit, Interest Expense	236	259	327	359
Liability for Future Policy Benefit, Expected Future Policy Benefit, Benefit Payment	(449)	(477)	(624)	(668)
AOCI, Liability for Future Policy Benefit, Expected Future Policy Benefit, before Tax	(956)	(859)	(617)	2,006
Liability for Future Policy Benefit, before Reinsurance	6,192	7,049	6,793	10,171
Liability for Future Policy Benefit, Reinsurance Recoverable, after Allowance	0	69	68	93
Future policy benefits	$ 6,192	$ 6,980	$ 6,725	$ 10,078
Liability for Future Policy Benefit, Weighted-Average Duration	11 years 7 months 6 days	12 years 8 months 12 days
Liability for Future Policy Benefit, Weighted-Average Interest Accretion Rate	4.45%	4.44%
Liability for Future Policy Benefit, Current Weighted-Average Discount Rate	5.91%	5.46%
Liability for Future Policy Benefit, Gross Premium Income	$ 0	$ 0
Liability for Future Policy Benefit, Expected Future Gross Premium, Undiscounted, before Reinsurance	0	0
Liability for Future Policy Benefit, Expected Future Gross Premium, Discounted, before Reinsurance	0	0
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted, before Reinsurance	$ 13,909	$ 16,721

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Insurance (Future Policy Benefits - SOP) (Details) - ULSG - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Additional Liability, Long-Duration Insurance [Line Items]
Additional Liability, Long-Duration Insurance, before Reinsurance, after Discount Rate Change	$ 7,240	$ 6,971	$ 6,935	$ 7,168
Additional Liability, Long-Duration Insurance, Original Discount Rate, before Cash Flow and Reinsurance	7,587	7,054	7,175	6,731
Additional Liability, Long-Duration Insurance, Cumulative Increase (Decrease) from Cash Flow Change			52	(37)
Additional Liability, Long-Duration Insurance, Cumulative Increase (Decrease) of Actual Variance from Expected Experience			75	157
Additional Liability, Long-Duration Insurance, Original Discount Rate, before Reinsurance, after Cash Flow Change			$ 7,302	$ 6,851
Additional Liability, Long-Duration Insurance, Interest Income (Expense)	265	248
Additional Liability, Long-Duration Insurance, Net Premium Collected	309	324
Additional Liability, Long-Duration Insurance, Benefit Payment	(289)	(369)
Additional Liability, Long-Duration Insurance, Remeasurement Gain (Loss)	0	0
AOCI, Liability for Future Policy Benefit, before Tax	(347)	(83)
Additional Liability, Long-Duration Insurance, Reinsurance Recoverable, after Allowance	1,409	1,393
Additional Liability, Long-Duration Insurance, after Reinsurance	$ 5,831	$ 5,578
Additional Liability, Long-Duration Insurance, Weighted-Average Duration	6 years 8 months 12 days	6 years 8 months 12 days
Additional Liability, Long-Duration Insurance, Weighted-Average Interest Accretion Rate	4.92%	4.90%
Additional Liability, Long-Duration Insurance, Gross Premium Income	$ 798	$ 834

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Insurance (Future Policy Benefits - Reconciliation) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Future Policy Benefit, before Reinsurance	$ 30,404	$ 32,016
Liabilities reported in the preceding rollforward tables
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Future Policy Benefit, before Reinsurance	19,263	19,843
Long-term care insurance (1)
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Future Policy Benefit, before Reinsurance	5,276	5,632
ULSG liabilities, including liability for profits followed by losses
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Future Policy Benefit, before Reinsurance	1,966	2,866
Participating whole life insurance (2)
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Future Policy Benefit, before Reinsurance	$ 3,054	$ 2,900
Participating Insurance, Percentage of Gross Insurance in Force	3.00%	3.00%
Participating Insurance, Percentage of Premium Income	40.00%	41.00%
Participating whole life insurance (2) | Minimum
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Future Policy Benefits, Interest Rate	3.50%
Participating whole life insurance (2) | Maximum
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Future Policy Benefits, Interest Rate	4.50%
Deferred profit liabilities
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Future Policy Benefit, before Reinsurance	$ 459	$ 379
Other
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Future Policy Benefit, before Reinsurance	$ 386	$ 396

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Insurance (Policyholder Account Balances) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Policyholder Account Balance [Line Items]
Interest credited to policyholder account balances	$ 426	$ 405	$ 1,300	$ 937
Policyholder Account Balance, Ending Balance	78,371	69,749	78,371	69,749
Universal Life Insurance
Policyholder Account Balance [Line Items]
Policyholder Account Balance, Beginning Balance			2,658	2,694
Premiums and deposits			171	164
Surrenders and withdrawals			(140)	(69)
Benefit payments			(52)	(50)
Net transfers from (to) separate account			42	38
Interest credited to policyholder account balances			33	53
Policy charges			(167)	(167)
Changes related to embedded derivatives			0	0
Policyholder Account Balance, Ending Balance	$ 2,545	$ 2,663	$ 2,545	$ 2,663
Weighted-average crediting rate (2)	1.27%	1.98%	1.27%	1.98%
Variable Annuities
Policyholder Account Balance [Line Items]
Policyholder Account Balance, Beginning Balance			$ 4,908	$ 4,743
Premiums and deposits			63	127
Surrenders and withdrawals			(486)	(332)
Benefit payments			(89)	(89)
Net transfers from (to) separate account			8	174
Interest credited to policyholder account balances			98	120
Policy charges			(19)	(20)
Changes related to embedded derivatives			0	0
Policyholder Account Balance, Ending Balance	$ 4,483	$ 4,723	$ 4,483	$ 4,723
Weighted-average crediting rate (2)	2.09%	2.53%	2.09%	2.53%
Index-linked Annuities
Policyholder Account Balance [Line Items]
Policyholder Account Balance, Beginning Balance			$ 33,897	$ 32,000
Premiums and deposits			5,314	5,081
Surrenders and withdrawals			(2,588)	(1,578)
Benefit payments			(177)	(123)
Net transfers from (to) separate account			0	0
Interest credited to policyholder account balances			299	301
Policy charges			(6)	(5)
Changes related to embedded derivatives			1,880	(4,086)
Policyholder Account Balance, Ending Balance	$ 38,619	$ 31,590	$ 38,619	$ 31,590
Weighted-average crediting rate (2)	1.02%	0.84%	1.02%	0.84%
Fixed Rate Annuities
Policyholder Account Balance [Line Items]
Policyholder Account Balance, Beginning Balance			$ 14,274	$ 11,849
Premiums and deposits			1,983	2,181
Surrenders and withdrawals			(1,518)	(439)
Benefit payments			(285)	(255)
Net transfers from (to) separate account			0	0
Interest credited to policyholder account balances			357	243
Policy charges			0	0
Changes related to embedded derivatives			0	0
Policyholder Account Balance, Ending Balance	$ 14,811	$ 13,579	$ 14,811	$ 13,579
Weighted-average crediting rate (2)	2.43%	1.98%	2.43%	1.98%
ULSG
Policyholder Account Balance [Line Items]
Policyholder Account Balance, Beginning Balance			$ 5,307	$ 5,569
Premiums and deposits			501	529
Surrenders and withdrawals			(17)	(26)
Benefit payments			(67)	(58)
Net transfers from (to) separate account			0	0
Interest credited to policyholder account balances			165	152
Policy charges			(764)	(786)
Changes related to embedded derivatives			0	0
Policyholder Account Balance, Ending Balance	$ 5,125	$ 5,380	$ 5,125	$ 5,380
Weighted-average crediting rate (2)	3.17%	2.77%	3.17%	2.77%
Company-Owned Life Insurance
Policyholder Account Balance [Line Items]
Policyholder Account Balance, Beginning Balance			$ 641	$ 646
Premiums and deposits			0	0
Surrenders and withdrawals			0	0
Benefit payments			(6)	(5)
Net transfers from (to) separate account			0	(13)
Interest credited to policyholder account balances			22	16
Policy charges			(7)	(5)
Changes related to embedded derivatives			0	0
Policyholder Account Balance, Ending Balance	$ 650	$ 639	$ 650	$ 639
Weighted-average crediting rate (2)	3.41%	2.47%	3.41%	2.47%

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Insurance (Reconciliation of Policyholder Account Balances) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Sep. 30, 2022
Policyholder Account Balance [Line Items]
Policyholder Account Balance	$ 78,371	$ 69,749
Rollforwards Total
Policyholder Account Balance [Line Items]
Policyholder Account Balance	66,233	58,574
Funding agreements classified as investment contracts
Policyholder Account Balance [Line Items]
Policyholder Account Balance	11,052	9,959
Other investment contract liabilities
Policyholder Account Balance [Line Items]
Policyholder Account Balance	$ 1,086	$ 1,216

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Insurance (Balance of Account Values by range of guaranteed minimum crediting rates) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	$ 19,681	$ 19,490
Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	2,503	2,580
ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	5,115	5,328
Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	8,636	7,368
Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	216	172
Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	0	0
Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	10,141	11,597
Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	673	751
Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	4,602	4,801
Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	904	525
Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	1,614	1,657
Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	513	527
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	11,357	7,505
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	1,614	1,657
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	1,672	1,752
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	723	861
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	0	0
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	0	0
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	9,730	6,119
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	0	0
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	1,159	1,225
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	904	525
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	1,614	1,657
Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	513	527
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	371	5,189
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	488	510
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	1,506	1,581
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	254	317
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	0	0
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	0	0
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	117	4,872
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	488	510
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	1,506	1,581
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	0	0
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	0	0
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	0	0
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	701	965
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	49	87
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	1,680	1,729
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	474	369
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	0	0
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	0	0
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	227	596
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	49	87
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	1,680	1,729
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	0	0
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	0	0
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	0	0
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	7,252	5,831
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	352	326
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	257	266
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	7,185	5,821
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	216	172
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range Less Than 0200 | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	0	0
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	67	10
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	136	154
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range From 0200 to 0399 | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	257	266
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Variable Annuities
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	0	0
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Life
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	0	0
Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | ULSG
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items]
Policyholder Account Balances gross of policy loans and excludes excessing interest reserves	$ 0	$ 0

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Insurance (Market Risk Benefit) (Details) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Jan. 01, 2021	Dec. 31, 2020
Variable Annuities
Market Risk Benefit [Line Items]
Market Risk Benefit, after Increase (Decrease) from Instrument-Specific Credit Risk	$ 8,178	$ 11,099	$ 9,974	$ 15,698		$ 18,388
Market Risk Benefit, before Reinsurance and Cumulative Increase (Decrease) from Instrument-Specific Credit Risk Change	6,488	9,519	8,230	11,611		$ 14,934
Market Risk Benefit, Decrement	(114)	19	16	(68)
Market Risk Benefit, Increase (Decrease) from Future Expected Policyholder Behavior Assumption	259	210	210	41
Market Risk Benefit, Increase (Decrease) from Actual Policyholder Behavior Different from Expected	178	(332)	(48)	(86)
Market Risk Benefit, Increase (Decrease) from Interest Rate Change	(2,360)	(8,393)	(8,394)	(1,829)
Market Risk Benefit, Increase (Decrease) from Equity Market Change	(669)	5,607	3,807	(2,578)
Market Risk Benefit, Issuance	(9)	(29)	(47)	(96)
Market Risk Benefit, Effect of changes in risk margin	(52)	(120)	(152)	(128)
Market Risk Benefit, Aging of the Block and Other	1,025	946	1,227	1,421
AOCI, Market Risk Benefit, Instrument-Specific Credit Risk, before Tax	1,690	1,580	1,744	4,087
Market Risk Benefit, Reinsurance Recoverable, after Allowance	35	76	71	118	$ 169
Market Risk Benefit, after Reinsurance and Cumulative Increase (Decrease) from Instrument-Specific Credit Risk Change	$ 8,143	$ 11,023	$ 9,903	$ 15,580	$ 18,219
Market Risk Benefit, Weighted-Average Attained Age of Contract holder	72 years 7 months 6 days	71 years 7 months 6 days	71 years 9 months 18 days	71 years 1 month 6 days
Index-linked Annuities
Market Risk Benefit [Line Items]
Market Risk Benefit, after Increase (Decrease) from Instrument-Specific Credit Risk	$ (7)	$ 2	$ 3	$ 5

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Insurance (Separate Accounts Liability) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Separate Account, Liability [Line Items]
Separate Account, Liability, Beginning Balance	$ 84,965
Separate Account, Liability, Ending Balance	82,675	$ 81,838
Variable Annuities
Separate Account, Liability [Line Items]
Separate Account, Liability, Beginning Balance	77,653	105,023
Premiums and deposits	599	1,021
Surrenders and withdrawals	(4,603)	(4,684)
Benefit payments	(1,101)	(1,043)
Investment performance	4,175	(23,515)
Policy charges	(1,638)	(1,757)
Net transfers from (to) separate account	(8)	(174)
Other	(5)	46
Separate Account, Liability, Ending Balance	75,072	74,917
Universal Life Insurance
Separate Account, Liability [Line Items]
Separate Account, Liability, Beginning Balance	5,218	6,862
Premiums and deposits	122	131
Surrenders and withdrawals	(138)	(131)
Benefit payments	(51)	(52)
Investment performance	440	(1,706)
Policy charges	(152)	(151)
Net transfers from (to) separate account	(42)	(38)
Other	0	(1)
Separate Account, Liability, Ending Balance	5,397	4,914
Company-Owned Life Insurance
Separate Account, Liability [Line Items]
Separate Account, Liability, Beginning Balance	1,932	2,384
Premiums and deposits	0	0
Surrenders and withdrawals	(11)	(11)
Benefit payments	(21)	(25)
Investment performance	174	(457)
Policy charges	(37)	(51)
Net transfers from (to) separate account	0	13
Other	(1)	2
Separate Account, Liability, Ending Balance	$ 2,036	$ 1,855

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Insurance (Reconciliation of Separate Account Liability) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Separate Account, Liability [Line Items]
Separate account liabilities	$ 82,675	$ 84,965	$ 81,838
Variable income annuities	152		137
Pension risk transfer annuities	18		15
Rollforwards Total
Separate Account, Liability [Line Items]
Separate account liabilities	$ 82,505		$ 81,686

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Insurance (Aggregate FV of Assets Supporting Separate Accounts) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Separate Account, Liability [Line Items]
Separate account assets	$ 82,675	$ 84,965
Equity securities
Separate Account, Liability [Line Items]
Separate account assets	82,419	84,667
Fixed maturity securities
Separate Account, Liability [Line Items]
Separate account assets	244	278
Cash and cash equivalents
Separate Account, Liability [Line Items]
Separate account assets	6	9
Other
Separate Account, Liability [Line Items]
Separate account assets	$ 6	$ 11

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Insurance (Net Amount at Risk and Cash Surrender Values) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Net Amount at Risk by Product and Guarantee [Line Items]
Policyholder Account Balance	$ 78,371		$ 69,749
Separate account liabilities	82,675	$ 84,965	81,838
Universal Life Insurance
Net Amount at Risk by Product and Guarantee [Line Items]
Policyholder Account Balance	2,545	2,658	2,663	$ 2,694
Separate account liabilities	5,397		4,914
Total account balances	7,942		7,577
Net amount at risk	36,238		38,783
Cash surrender value	7,346		6,918
Variable Annuities
Net Amount at Risk by Product and Guarantee [Line Items]
Policyholder Account Balance	4,483	4,908	4,723	4,743
Separate account liabilities	75,072	77,653	74,917	105,023
Total account balances	79,555		79,640
Net amount at risk	16,127		18,461
Cash surrender value	79,155		79,523
Index-linked Annuities
Net Amount at Risk by Product and Guarantee [Line Items]
Policyholder Account Balance	38,619	33,897	31,590	32,000
Separate account liabilities	0		0
Total account balances	38,619		31,590
Cash surrender value	36,164		28,922
Fixed Rate Annuities
Net Amount at Risk by Product and Guarantee [Line Items]
Policyholder Account Balance	14,811	14,274	13,579	11,849
Separate account liabilities	0		0
Total account balances	14,811		13,579
Cash surrender value	14,189		12,748
ULSG
Net Amount at Risk by Product and Guarantee [Line Items]
Policyholder Account Balance	5,125	5,307	5,380	5,569
Separate account liabilities	0		0
Total account balances	5,125		5,380
Net amount at risk	69,277		71,142
Cash surrender value	6,121		6,315
Company-Owned Life Insurance
Net Amount at Risk by Product and Guarantee [Line Items]
Policyholder Account Balance	650	641	639	646
Separate account liabilities	2,036	$ 1,932	1,855	$ 2,384
Total account balances	2,686		2,494
Net amount at risk	2,625		3,413
Cash surrender value	$ 2,469		$ 2,284

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Insurance (Liability for Future Policy Benefits - Narrative) (Details)	9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Insurance [Abstract]
Mean reversion rate	0.0375	0.0350	0.0350	0.0300

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Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles (Information Regarding DAC and VOBA) (Details) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Balance, end of period, Total DAC and VOBA	$ 4,919		$ 5,084
Variable Annuities
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Balance, beginning of period, DAC	2,508	$ 2,718	2,718	$ 2,912
Capitalization	29	48	55	90
Amortization	(185)	(200)	(265)	(284)
Balance, end of period, DAC	2,352	2,566	2,508	2,718
Balance, beginning of period, VOBA	341	377	377	428
Amortization	(24)	(27)	(36)	(51)
Balance, end of period, VOBA	317	350	341	377
Balance, end of period, Total DAC and VOBA	2,669	2,916	2,849	3,095
Fixed Rate Annuities
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Balance, beginning of period, DAC	107	89	89	64
Capitalization	9	20	30	37
Amortization	(8)	(10)	(12)	(12)
Balance, end of period, DAC	108	99	107	89
Balance, beginning of period, VOBA	65	70	70	76
Amortization	(4)	(4)	(5)	(6)
Balance, end of period, VOBA	61	66	65	70
Balance, end of period, Total DAC and VOBA	169	165	172	159
Index-linked Annuities
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Balance, beginning of period, DAC	1,213	1,081	1,081	886
Capitalization	255	252	330	354
Amortization	(167)	(145)	(198)	(159)
Balance, end of period, DAC	1,301	1,188	1,213	1,081
Balance, beginning of period, VOBA	0	0	0	0
Amortization	0	0	0	0
Balance, end of period, VOBA	0	0	0	0
Balance, end of period, Total DAC and VOBA	1,301	1,188	1,213	1,081
Term and Whole Life Insurance
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Balance, beginning of period, DAC	405	462	462	527
Capitalization	1	0	(1)	(3)
Amortization	(40)	(45)	(56)	(62)
Balance, end of period, DAC	366	417	405	462
Balance, beginning of period, VOBA	5	6	6	8
Amortization	(1)	(1)	(1)	(2)
Balance, end of period, VOBA	4	5	5	6
Balance, end of period, Total DAC and VOBA	370	422	410	468
Universal Life Insurance
Deferred Policy Acquisition Cost and Present Value of Future Profit [Line Items]
Balance, beginning of period, DAC	392	431	431	469
Capitalization	9	8	11	16
Amortization	(35)	(38)	(50)	(54)
Balance, end of period, DAC	366	401	392	431
Balance, beginning of period, VOBA	48	54	54	61
Amortization	(4)	(4)	(6)	(7)
Balance, end of period, VOBA	44	50	48	54
Balance, end of period, Total DAC and VOBA	$ 410	$ 451	$ 440	$ 485

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Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles (Information Regarding DSI) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Variable Annuities
Deferred Sale Inducement Cost [Line Items]
Balance, beginning of period	$ 245	$ 272
Amortization	(19)	(21)
Balance, end of period	226	251
Fixed Rate Annuities
Deferred Sale Inducement Cost [Line Items]
Balance, beginning of period	9	10
Amortization	(1)	(1)
Balance, end of period	$ 8	$ 9

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Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles (Unearned Revenue) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Universal Life Insurance
Deferred Revenue Arrangement [Line Items]
Balance, beginning of period	$ 356	$ 358
Capitalization	29	29
Amortization	(29)	(30)
Balance, end of period	356	357
ULSG
Deferred Revenue Arrangement [Line Items]
Balance, beginning of period	488	344
Capitalization	132	137
Amortization	(36)	(26)
Balance, end of period	584	455
Variable Annuities
Deferred Revenue Arrangement [Line Items]
Balance, beginning of period	74	80
Capitalization	0	1
Amortization	(6)	(6)
Balance, end of period	$ 68	$ 75

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Investments (Fixed Maturity Securities by Sector) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, amortized cost	$ 86,373	$ 84,344
Fixed maturity securities, allowance for credit losses	22	7	$ 5	$ 11
Fixed maturity securities, gross unrealized gains	266	752
Fixed maturity securities, gross unrealized losses	11,184	9,512
Fixed maturity securities, estimated fair value	75,433	75,577
U.S. corporate
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, amortized cost	38,294	36,926
Fixed maturity securities, allowance for credit losses	14	1	1	2
Fixed maturity securities, gross unrealized gains	84	203
Fixed maturity securities, gross unrealized losses	5,454	4,521
Fixed maturity securities, estimated fair value	32,910	32,607
Foreign corporate
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, amortized cost	12,709	12,471
Fixed maturity securities, allowance for credit losses	0	1	0	7
Fixed maturity securities, gross unrealized gains	20	38
Fixed maturity securities, gross unrealized losses	2,051	1,932
Fixed maturity securities, estimated fair value	10,678	10,576
U.S. government and agency
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, amortized cost	8,640	8,318
Fixed maturity securities, allowance for credit losses	0	0
Fixed maturity securities, gross unrealized gains	34	300
Fixed maturity securities, gross unrealized losses	872	602
Fixed maturity securities, estimated fair value	7,802	8,016
RMBS
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, amortized cost	8,235	8,431
Fixed maturity securities, allowance for credit losses	6	2	2	0
Fixed maturity securities, gross unrealized gains	31	44
Fixed maturity securities, gross unrealized losses	1,209	945
Fixed maturity securities, estimated fair value	7,051	7,528
CMBS
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, amortized cost	7,112	7,324
Fixed maturity securities, allowance for credit losses	2	3	$ 2	$ 2
Fixed maturity securities, gross unrealized gains	1	0
Fixed maturity securities, gross unrealized losses	803	710
Fixed maturity securities, estimated fair value	6,308	6,611
ABS
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, amortized cost	6,294	5,652
Fixed maturity securities, allowance for credit losses	0	0
Fixed maturity securities, gross unrealized gains	12	3
Fixed maturity securities, gross unrealized losses	192	296
Fixed maturity securities, estimated fair value	6,114	5,359
State and political subdivision
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, amortized cost	4,010	4,074
Fixed maturity securities, allowance for credit losses	0	0
Fixed maturity securities, gross unrealized gains	64	125
Fixed maturity securities, gross unrealized losses	470	400
Fixed maturity securities, estimated fair value	3,604	3,799
Foreign government
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, amortized cost	1,079	1,148
Fixed maturity securities, allowance for credit losses	0	0
Fixed maturity securities, gross unrealized gains	20	39
Fixed maturity securities, gross unrealized losses	133	106
Fixed maturity securities, estimated fair value	$ 966	$ 1,081

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Investments (Maturities of Fixed Maturity Securities) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Amortized cost, due in one year or less	$ 2,207
Amortized cost, due after one year through five years	16,877
Amortized cost, due after five years through ten years	15,314
Amortized cost, due after ten years	30,334
Amortized cost, Structured Securities	21,641
Fixed maturity securities, amortized cost	86,373	$ 84,344
Estimated fair value, due in one year or less	2,163
Estimated fair value, due after one year through five years	15,977
Estimated fair value, due after five years through ten years	13,185
Estimated fair value, due after ten years	24,635
Estimated fair value, Structured Securities	19,473
Fixed maturity securities, estimated fair value	$ 75,433	$ 75,577

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Investments (Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector) (Details) $ in Millions	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value	$ 19,136	$ 52,375
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses	$ 1,656	$ 6,644
Fixed maturity securities in continuous unrealized loss position, less than 12 months, number of securities	2,938	7,309
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value	$ 48,487	$ 11,944
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses	$ 9,528	$ 2,868
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, number of securities	7,027	2,049
U.S. corporate
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value	$ 8,766	$ 24,509
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses	881	3,351
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value	21,485	3,979
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses	4,573	1,170
Foreign corporate
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value	2,032	8,260
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses	164	1,413
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value	8,039	1,601
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses	1,887	519
U.S. government and agency
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value	3,098	3,121
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses	175	265
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value	3,395	1,147
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses	697	337
RMBS
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value	1,163	4,731
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses	115	497
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value	5,398	2,246
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses	1,094	448
CMBS
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value	1,425	5,589
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses	169	543
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value	4,681	970
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses	634	167
ABS
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value	1,336	3,347
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses	18	159
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value	3,515	1,733
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses	174	137
State and political subdivision
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value	1,116	2,041
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses	120	317
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value	1,399	247
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses	350	83
Foreign government
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value	200	777
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses	14	99
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value	575	21
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses	$ 119	$ 7

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Investments Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Debt Securities, Available-for-sale [Line Items]
Balance, beginning of period	$ 7	$ 11
Allowance on securities where credit losses were not previously recorded	18	1
Reductions for securities sold	(2)	(1)
Change in allowance on securities with an allowance recorded in a previous period	0	1
Write-offs charged against allowance (1)	(1)	(7)
Balance, end of period	22	5
U.S. corporate
Debt Securities, Available-for-sale [Line Items]
Balance, beginning of period	1	2
Allowance on securities where credit losses were not previously recorded	14	0
Reductions for securities sold	(1)	(1)
Change in allowance on securities with an allowance recorded in a previous period	0	0
Write-offs charged against allowance (1)	0	0
Balance, end of period	14	1
RMBS
Debt Securities, Available-for-sale [Line Items]
Balance, beginning of period	2	0
Allowance on securities where credit losses were not previously recorded	4	1
Reductions for securities sold	0	0
Change in allowance on securities with an allowance recorded in a previous period	0	1
Write-offs charged against allowance (1)	0	0
Balance, end of period	6	2
Foreign corporate
Debt Securities, Available-for-sale [Line Items]
Balance, beginning of period	1	7
Allowance on securities where credit losses were not previously recorded	0	0
Reductions for securities sold	0	0
Change in allowance on securities with an allowance recorded in a previous period	0	0
Write-offs charged against allowance (1)	(1)	(7)
Balance, end of period	0	0
CMBS
Debt Securities, Available-for-sale [Line Items]
Balance, beginning of period	3	2
Allowance on securities where credit losses were not previously recorded	0	0
Reductions for securities sold	(1)	0
Change in allowance on securities with an allowance recorded in a previous period	0	0
Write-offs charged against allowance (1)	0	0
Balance, end of period	$ 2	$ 2

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Investments (Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, before allowance for credit losses	$ 22,819	$ 23,055
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses	100.60%	100.50%
Financing receivable, allowance for credit losses	$ (137)	$ (119)	$ (99)	$ (123)
Financing receivable, allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses	(0.60%)	(0.50%)
Financing receivable, net of allowance for credit losses	$ 22,682	$ 22,936
Financing receivable, after allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses	100.00%	100.00%
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, before allowance for credit losses	$ 13,307	$ 13,574
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses	58.60%	59.20%
Financing receivable, allowance for credit losses	$ (67)	$ (49)	(45)	(67)
Agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, before allowance for credit losses	$ 4,461	$ 4,365
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses	19.70%	19.00%
Financing receivable, allowance for credit losses	$ (15)	$ (15)	(15)	(12)
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, before allowance for credit losses	$ 5,051	$ 5,116
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses	22.30%	22.30%
Financing receivable, allowance for credit losses	$ (55)	$ (55)	$ (39)	$ (44)

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Investments (Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Financing receivable, allowance for credit losses, beginning of period	$ 119	$ 123
Current period provision	23	(1)
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery	(5)	(23)
Financing receivable, allowance for credit losses, end of period	137	99
Commercial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Financing receivable, allowance for credit losses, beginning of period	49	67
Current period provision	22	1
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery	(4)	(23)
Financing receivable, allowance for credit losses, end of period	67	45
Agricultural
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Financing receivable, allowance for credit losses, beginning of period	15	12
Current period provision	1	3
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery	(1)	0
Financing receivable, allowance for credit losses, end of period	15	15
Residential
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Financing receivable, allowance for credit losses, beginning of period	55	44
Current period provision	0	(5)
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery	0	0
Financing receivable, allowance for credit losses, end of period	$ 55	$ 39

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Investments (Credit Quality of Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	$ 420	$ 4,369
Financing receivable, originated in FY before latest FY	4,412	6,197
Financing receivable, originated two years before latest FY	6,173	1,091
Financing receivable, originated three years before latest FY	1,055	2,648
Financing receivable, originated four years before latest FY	2,610	2,191
Financing receivable, originated five or more years before latest FY	8,149	6,559
Financing receivable, before allowance for credit losses	22,819	23,055
Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	161	2,419
Financing receivable, originated in FY before latest FY	2,417	3,191
Financing receivable, originated two years before latest FY	3,215	445
Financing receivable, originated three years before latest FY	440	1,879
Financing receivable, originated four years before latest FY	1,862	1,377
Financing receivable, originated five or more years before latest FY	5,212	4,263
Financing receivable, before allowance for credit losses	$ 13,307	$ 13,574
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses	100.00%	100.00%
Commercial | Debt Service Coverage Ratio, Greater than 1.20x
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, before allowance for credit losses	$ 12,276	$ 12,157
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses	92.20%	89.60%
Commercial | Debt Service Coverage Ratio, 1.00x to 1.20x
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, before allowance for credit losses	$ 540	$ 590
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses	4.10%	4.30%
Commercial | Debt Service Coverage Ratio, Less than 1.00x
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, before allowance for credit losses	$ 491	$ 827
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses	3.70%	6.10%
Commercial | Loan-to-Value Ratio, Less than 65%
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	$ 161	$ 1,916
Financing receivable, originated in FY before latest FY	1,876	2,819
Financing receivable, originated two years before latest FY	2,515	405
Financing receivable, originated three years before latest FY	224	1,493
Financing receivable, originated four years before latest FY	1,289	888
Financing receivable, originated five or more years before latest FY	2,826	3,627
Financing receivable, before allowance for credit losses	8,891	11,148
Commercial | Loan-to-Value Ratio, 65% to 75%
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	0	503
Financing receivable, originated in FY before latest FY	529	354
Financing receivable, originated two years before latest FY	650	0
Financing receivable, originated three years before latest FY	177	271
Financing receivable, originated four years before latest FY	269	367
Financing receivable, originated five or more years before latest FY	1,195	425
Financing receivable, before allowance for credit losses	2,820	1,920
Commercial | Loan-to-Value Ratio, 76% to 80%
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	0	0
Financing receivable, originated in FY before latest FY	12	18
Financing receivable, originated two years before latest FY	50	40
Financing receivable, originated three years before latest FY	39	90
Financing receivable, originated four years before latest FY	209	65
Financing receivable, originated five or more years before latest FY	508	48
Financing receivable, before allowance for credit losses	818	261
Commercial | Loan-to-Value Ratio, Greater than 80%
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	0	0
Financing receivable, originated in FY before latest FY	0	0
Financing receivable, originated two years before latest FY	0	0
Financing receivable, originated three years before latest FY	0	25
Financing receivable, originated four years before latest FY	95	57
Financing receivable, originated five or more years before latest FY	683	163
Financing receivable, before allowance for credit losses	778	245
Agricultural
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	160	680
Financing receivable, originated in FY before latest FY	701	1,253
Financing receivable, originated two years before latest FY	1,245	479
Financing receivable, originated three years before latest FY	465	552
Financing receivable, originated four years before latest FY	538	645
Financing receivable, originated five or more years before latest FY	1,352	756
Financing receivable, before allowance for credit losses	4,461	4,365
Agricultural | Loan-to-Value Ratio, Less than 65%
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	160	532
Financing receivable, originated in FY before latest FY	574	1,163
Financing receivable, originated two years before latest FY	1,138	420
Financing receivable, originated three years before latest FY	459	496
Financing receivable, originated four years before latest FY	507	643
Financing receivable, originated five or more years before latest FY	1,334	740
Financing receivable, before allowance for credit losses	4,172	3,994
Agricultural | Loan-to-Value Ratio, 65% to 75%
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	0	148
Financing receivable, originated in FY before latest FY	127	90
Financing receivable, originated two years before latest FY	107	59
Financing receivable, originated three years before latest FY	6	56
Financing receivable, originated four years before latest FY	31	1
Financing receivable, originated five or more years before latest FY	18	16
Financing receivable, before allowance for credit losses	289	370
Agricultural | Loan-to-Value Ratio, Greater than 80%
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	0	0
Financing receivable, originated in FY before latest FY	0	0
Financing receivable, originated two years before latest FY	0	0
Financing receivable, originated three years before latest FY	0	0
Financing receivable, originated four years before latest FY	0	1
Financing receivable, originated five or more years before latest FY	0	0
Financing receivable, before allowance for credit losses	0	1
Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	99	1,270
Financing receivable, originated in FY before latest FY	1,294	1,753
Financing receivable, originated two years before latest FY	1,713	167
Financing receivable, originated three years before latest FY	150	217
Financing receivable, originated four years before latest FY	210	169
Financing receivable, originated five or more years before latest FY	1,585	1,540
Financing receivable, before allowance for credit losses	5,051	5,116
Residential | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	99	1,266
Financing receivable, originated in FY before latest FY	1,274	1,745
Financing receivable, originated two years before latest FY	1,693	167
Financing receivable, originated three years before latest FY	149	215
Financing receivable, originated four years before latest FY	208	168
Financing receivable, originated five or more years before latest FY	1,543	1,491
Financing receivable, before allowance for credit losses	4,966	5,052
Residential | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, originated in current FY	0	4
Financing receivable, originated in FY before latest FY	20	8
Financing receivable, originated two years before latest FY	20	0
Financing receivable, originated three years before latest FY	1	2
Financing receivable, originated four years before latest FY	2	1
Financing receivable, originated five or more years before latest FY	42	49
Financing receivable, before allowance for credit losses	$ 85	$ 64

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Investments (Past Due Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	$ 22,819	$ 23,055
Current
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	22,619	22,961
30 to 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	76	11
60 to 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	30	16
90 to 179 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	23	34
180 Days and Greater Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	71	33
Commercial
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	13,307	13,574
Commercial | Current
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	13,290	13,574
Commercial | 30 to 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	0	0
Commercial | 60 to 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	0	0
Commercial | 90 to 179 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	0	0
Commercial | 180 Days and Greater Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	17	0
Agricultural
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	4,461	4,365
Agricultural | Current
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	4,439	4,346
Agricultural | 30 to 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	0	0
Agricultural | 60 to 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	0	0
Agricultural | 90 to 179 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	0	3
Agricultural | 180 Days and Greater Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	22	16
Residential
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	5,051	5,116
Residential | Current
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	4,890	5,041
Residential | 30 to 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	76	11
Residential | 60 to 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	30	16
Residential | 90 to 179 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	23	31
Residential | 180 Days and Greater Past Due
Financing Receivable, Past Due [Line Items]
Financing receivable, before allowance for credit losses	$ 32	$ 17

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Investments (Mortgage Loans in Nonaccrual Status by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable, Nonaccrual [Line Items]
Financing receivable in nonaccrual status	$ 102	$ 78
Commercial
Financing Receivable, Nonaccrual [Line Items]
Financing receivable in nonaccrual status	17	11
Agricultural
Financing Receivable, Nonaccrual [Line Items]
Financing receivable in nonaccrual status	0	3
Residential
Financing Receivable, Nonaccrual [Line Items]
Financing receivable in nonaccrual status	$ 85	$ 64

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Investments (Net Unrealized Investment Gains (Losses)) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss
Fixed maturity securities	$ (10,918)	$ (8,760)
Derivatives	509	638
Other	(8)	3
Subtotal	(10,417)	(8,119)
Amounts allocated from: Future policy benefits	1,290	917
Deferred income tax benefit (expense)	1,917	1,512
Net unrealized investment gains (losses)	$ (7,210)	$ (5,690)

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Investments (Changes in Net Unrealized Investment Gains (Losses)) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Investments, Debt and Equity Securities [Abstract]
Unrealized investment gains (losses), beginning of period	$ (5,690)
Unrealized investment gains (losses) during the period	(2,298)
Unrealized investment gains (losses) relating to: Future policy benefits	373
Unrealized investment gains (losses) relating to: Deferred income tax benefit (expense)	405
Unrealized investment gains (losses), end of period	(7,210)
Change in net unrealized investment gains (losses)	$ (1,520)

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Investments (Securities Lending) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	$ 3,171	$ 3,731
Reinvestment portfolio — estimated fair value	3,051	3,603
Amortized cost
Securities Financing Transaction [Line Items]
Securities on loan	3,620	3,995
Estimated fair value
Securities Financing Transaction [Line Items]
Securities on loan	$ 3,093	$ 3,638

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Investments (Securities Lending Remaining Tenor) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	$ 3,171	$ 3,731
Remaining Tenor of Securities Lending Agreements: Open
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	714	642
Remaining Tenor of Securities Lending Agreements: 1 Month or Less
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	1,420	2,105
Remaining Tenor of Securities Lending Agreements: 1 to 6 Months
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	1,037	984
U.S. government and agency
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	2,774	3,151
U.S. government and agency | Remaining Tenor of Securities Lending Agreements: Open
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	714	640
U.S. government and agency | Remaining Tenor of Securities Lending Agreements: 1 Month or Less
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	1,064	1,527
U.S. government and agency | Remaining Tenor of Securities Lending Agreements: 1 to 6 Months
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	996	984
U.S. corporate
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	280	412
U.S. corporate | Remaining Tenor of Securities Lending Agreements: Open
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	0	2
U.S. corporate | Remaining Tenor of Securities Lending Agreements: 1 Month or Less
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	253	410
U.S. corporate | Remaining Tenor of Securities Lending Agreements: 1 to 6 Months
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	27	0
Foreign corporate
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	107	152
Foreign corporate | Remaining Tenor of Securities Lending Agreements: Open
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	0	0
Foreign corporate | Remaining Tenor of Securities Lending Agreements: 1 Month or Less
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	99	152
Foreign corporate | Remaining Tenor of Securities Lending Agreements: 1 to 6 Months
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	8	0
Foreign government
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	10	16
Foreign government | Remaining Tenor of Securities Lending Agreements: Open
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	0	0
Foreign government | Remaining Tenor of Securities Lending Agreements: 1 Month or Less
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	4	16
Foreign government | Remaining Tenor of Securities Lending Agreements: 1 to 6 Months
Securities Financing Transaction [Line Items]
Cash collateral received from counterparties	$ 6	$ 0

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Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Invested assets on deposit (regulatory deposits)	$ 7,863	$ 7,999
Invested assets held in trust (reinsurance agreements)	5,536	5,621
Invested assets pledged as collateral	14,260	13,920
Total invested assets on deposit, held in trust and pledged as collateral	$ 27,659	$ 27,540

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Investments (Variable Interest Entities) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Variable Interest Entity [Line Items]
Carrying amount	$ 223,516	$ 224,847	$ 262,257
VIE, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Carrying amount	19,298	20,032
Maximum exposure to loss	22,324	22,962
VIE, Not Primary Beneficiary | Fixed maturity securities
Variable Interest Entity [Line Items]
Carrying amount	14,940	15,896
Maximum exposure to loss	16,780	17,471
VIE, Not Primary Beneficiary | Limited partnerships and LLCs
Variable Interest Entity [Line Items]
Carrying amount	4,358	4,136
Maximum exposure to loss	$ 5,544	$ 5,491

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Investments (Net Investment Income) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net Investment Income [Line Items]
Gross investment income	$ 1,293	$ 948	$ 3,731	$ 3,251
Less: Investment expenses	91	71	274	162
Net investment income	1,202	877	3,457	3,089
Fixed maturity securities
Net Investment Income [Line Items]
Gross investment income	897	787	2,602	2,247
Equity securities
Net Investment Income [Line Items]
Gross investment income	1	1	2	2
Mortgage loans
Net Investment Income [Line Items]
Gross investment income	240	208	716	616
Policy loans
Net Investment Income [Line Items]
Gross investment income	17	16	50	48
Limited partnerships and LLCs
Net Investment Income [Line Items]
Gross investment income	53	(106)	129	257
Cash, cash equivalents and short-term investments
Net Investment Income [Line Items]
Gross investment income	61	22	166	29
Other
Net Investment Income [Line Items]
Gross investment income	$ 24	$ 20	$ 66	$ 52

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Investments (Components of Net Investment Gains (Losses)) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net Investment Gains (Losses) [Line Items]
Net investment gains (losses)	$ (53)	$ (45)	$ (213)	$ (179)
Fixed maturity securities
Net Investment Gains (Losses) [Line Items]
Net investment gains (losses)	(54)	(38)	(185)	(140)
Equity securities
Net Investment Gains (Losses) [Line Items]
Net investment gains (losses)	(1)	(2)	(2)	(14)
Mortgage loans
Net Investment Gains (Losses) [Line Items]
Net investment gains (losses)	3	2	(24)	(1)
Limited partnerships and LLCs
Net Investment Gains (Losses) [Line Items]
Net investment gains (losses)	0	(4)	0	(21)
Other
Net Investment Gains (Losses) [Line Items]
Net investment gains (losses)	$ (1)	$ (3)	$ (2)	$ (3)

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Investments (Sales or Disposals of Fixed Maturity Securities) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales or disposals of fixed maturity securities	$ 494	$ 1,146	$ 1,771	$ 5,261
Fixed maturity securities, gross investment gains	1	1	12	47
Fixed maturity securities, gross investment losses	(44)	(38)	(173)	(181)
Fixed maturity securities, net investment gains (losses)	$ (43)	$ (37)	$ (161)	$ (134)

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Investments (Fixed Maturity Securities - Narrative) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, estimated fair value	$ 75,433		$ 75,577
Fixed maturity securities, allowance for credit losses	$ 22	$ 5	7	$ 11
Fixed maturity securities with allowance for credit losses, number of securities	24
Fixed maturity securities, total write-offs	$ 8	$ 10
Non-Income Producing
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, estimated fair value	12		0
Fixed maturity securities
Debt Securities, Available-for-sale [Line Items]
Accrued interest receivable	$ 689		$ 602

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Investments (Mortgage Loans - Narrative) (Details) - Mortgage Loans - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables purchased from third parties	$ 224	$ 387	$ 255	$ 1,600
Accrued interest receivable	118		118		$ 115
Financing receivables in nonaccrual status with no allowance for credit losses	$ 0		0		$ 0
Financing receivables in nonaccrual status, investment income			$ 1	$ 1
Minimum | Performing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, before allowance for credit losses by performance status as a percentage of financing receivables, before allowance for credit losses	99.00%		99.00%		99.00%

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Investments (Other Invested Assets - Narrative) (Details)	Sep. 30, 2023
Minimum
Derivative [Line Items]
Percentage of other invested assets comprised of freestanding derivatives with positive estimated fair values	75.00%

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Investments (Securities Lending - Narrative) (Details) $ in Millions	Sep. 30, 2023 USD ($)
Investments, Debt and Equity Securities [Abstract]
Cash collateral on deposit from counterparties	$ 699
Percentage of reinvestment portfolio invested in liquid assets	58.00%

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Investments (Invested Assets on Deposit, Held in Trust and Pledged as Collateral - Narrative) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Restricted Cash and Cash Equivalents Items [Line Items]
Invested assets on deposit (regulatory deposits)	$ 7,863	$ 7,999
Invested assets held in trust (reinsurance agreements)	5,536	5,621
Restricted Cash and Cash Equivalents
Restricted Cash and Cash Equivalents Items [Line Items]
Invested assets on deposit (regulatory deposits)	94	21
Invested assets held in trust (reinsurance agreements)	228	240
FHLB common stock	$ 247	$ 201

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Investments (Net Investment Income - Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net Investment Income [Line Items]
Net investment income	$ 1,202	$ 877	$ 3,457	$ 3,089
Other limited partnership interests
Net Investment Income [Line Items]
Net investment income	$ 64	$ (127)	$ 156	$ 178

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Investments (Components of Net Investment Gains (Losses) - Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Gain (Loss) on Securities [Line Items]
Net investment gains (losses)	$ (53)	$ (45)	$ (213)	$ (179)
Foreign Exchange
Gain (Loss) on Securities [Line Items]
Net investment gains (losses)	$ (2)	$ (1)	$ (2)	$ (22)

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Derivatives (Primary Risks Managed by Derivatives) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	$ 166,748	$ 116,991
Derivative assets	2,516	2,284
Derivative liabilities	4,991	3,920
Derivatives Designated as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	3,942	4,086
Derivative assets	472	596
Derivative liabilities	14	20
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	162,806	112,905
Derivative assets	2,044	1,688
Derivative liabilities	4,977	3,900
Interest rate swaps | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	30,527	3,145
Derivative assets	168	98
Derivative liabilities	280	46
Interest rate floors | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	3,000	3,250
Derivative assets	2	12
Derivative liabilities	1	3
Interest rate caps | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	5,800	6,350
Derivative assets	80	137
Derivative liabilities	27	43
Interest rate options | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	31,080	28,688
Derivative assets	19	22
Derivative liabilities	303	232
Interest rate forwards | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	16,441	18,168
Derivative assets	178	35
Derivative liabilities	2,867	2,466
Interest rate forwards | Cash flow hedges: | Derivatives Designated as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	0	60
Derivative assets	0	0
Derivative liabilities	0	12
Foreign currency swaps | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	771	822
Derivative assets	125	148
Derivative liabilities	0	0
Foreign currency swaps | Cash flow hedges: | Derivatives Designated as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	3,942	4,026
Derivative assets	472	596
Derivative liabilities	14	8
Foreign currency forwards | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	480	487
Derivative assets	5	1
Derivative liabilities	1	10
Credit default swaps — written | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	1,530	1,757
Derivative assets	21	18
Derivative liabilities	1	2
Credit default swaptions | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	0	100
Derivative assets	0	0
Derivative liabilities	0	0
Equity index options | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	16,215	17,229
Derivative assets	508	697
Derivative liabilities	436	351
Equity total return swaps | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	56,332	32,909
Derivative assets	931	520
Derivative liabilities	1,061	747
Hybrid options | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	630	0
Derivative assets	7	0
Derivative liabilities	$ 0	$ 0

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Derivatives (Derivatives Pertaining to Hedged Items) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	$ (840)	$ (592)	$ (3,226)	$ 1,331	$ (592)	$ (3,983)
Net Derivative Gains (Losses) Recognized for Hedged Items	(17)	(29)	(18)	(70)
Net Investment Income	1,202	877	3,457	3,089
Amount of Gains (Losses) Deferred in AOCI	(33)	333	(123)	617
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	(16)	(23)	(12)	(62)
Amount of Gains (Losses) Deferred in AOCI	0	0	0	0
Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	(1)	(6)	(6)	(8)
Amount of Gains (Losses) Deferred in AOCI	(33)	333	(123)	617
Net Derivative Gains (Losses) Recognized for Derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	(823)	(563)	(3,208)	1,401
Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	(824)	(571)	(3,211)	1,388
Net Derivative Gains (Losses) Recognized for Derivatives | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	1	8	3	13
Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Net Investment Income	14	18	43	45
Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Investment Income	0	0	0	0
Net Investment Income | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Net Investment Income	14	18	43	45
Interest rate | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	0	0	0	0
Amount of Gains (Losses) Deferred in AOCI	0	0	0	0
Interest rate | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	0	0	0	0
Amount of Gains (Losses) Deferred in AOCI	(2)	(8)	(1)	(49)
Interest rate | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	(1,481)	(1,233)	(1,422)	(3,671)
Interest rate | Net Derivative Gains (Losses) Recognized for Derivatives | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	0	0	(2)	4
Interest rate | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Investment Income	0	0	0	0
Interest rate | Net Investment Income | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Net Investment Income	1	1	3	3
Foreign currency exchange rate | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	(16)	(23)	(12)	(62)
Amount of Gains (Losses) Deferred in AOCI	0	0	0	0
Foreign currency exchange rate | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	(1)	(6)	(6)	(8)
Amount of Gains (Losses) Deferred in AOCI	(31)	341	(122)	666
Foreign currency exchange rate | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	21	99	25	212
Foreign currency exchange rate | Net Derivative Gains (Losses) Recognized for Derivatives | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	1	8	5	9
Foreign currency exchange rate | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Investment Income	0	0	0	0
Foreign currency exchange rate | Net Investment Income | Cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Net Investment Income	13	17	40	42
Credit | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	0	0	0	0
Amount of Gains (Losses) Deferred in AOCI	0	0	0	0
Credit | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	3	5	22	(27)
Credit | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Investment Income	0	0	0	0
Equity market | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	0	0	0	0
Amount of Gains (Losses) Deferred in AOCI	0	0	0	0
Equity market | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	(280)	40	44	768
Equity market | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Investment Income	0	0	0	0
Embedded | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Hedged Items	0	0	0	0
Amount of Gains (Losses) Deferred in AOCI	0	0	0	0
Embedded | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	913	518	(1,880)	4,106
Embedded | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Net Investment Income	$ 0	$ 0	$ 0	$ 0

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Derivatives (Credit Derivatives) (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 20	$ 16
Maximum Amount of Future Payments under Credit Default Swaps	$ 1,530	$ 1,757
Weighted Average Years to Maturity (2)	3 years 9 months 18 days	4 years 1 month 6 days
Credit default swaps | Aaa/Aa/A
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 7	$ 7
Maximum Amount of Future Payments under Credit Default Swaps	$ 544	$ 544
Weighted Average Years to Maturity (2)	1 year 6 months	2 years 2 months 12 days
Credit default swaps | Baa
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 12	$ 8
Maximum Amount of Future Payments under Credit Default Swaps	$ 958	$ 1,185
Weighted Average Years to Maturity (2)	5 years 2 months 12 days	5 years
Credit default swaps | Ba
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 2	$ 2
Maximum Amount of Future Payments under Credit Default Swaps	$ 24	$ 24
Weighted Average Years to Maturity (2)	3 years 2 months 12 days	4 years
Credit default swaps | Caa and Lower
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ (1)	$ (1)
Maximum Amount of Future Payments under Credit Default Swaps	$ 4	$ 4
Weighted Average Years to Maturity (2)	2 years 2 months 12 days	3 years

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Derivatives (Estimated Fair Value of Derivatives Assets and Liabilities after Master Netting Agreements and Cash Collateral) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Offsetting Derivative Assets [Abstract]
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	$ 2,735	$ 2,308
Derivative Asset, Not Offset, Policy Election Deduction	(2,028)	(1,659)
Derivative Asset, Collateral, Obligation to Return Cash, Offset	(688)	(640)
Derivative Asset, Fair Value, Amount Offset Against Collateral	19	9
Derivative Asset, Collateral, Obligation to Return Securities, Offset	(6)	(6)
Derivative Asset, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election	13	3
Offsetting Derivative Liabilities [Abstract]
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	5,214	3,919
Derivative Liability, Not Offset, Policy Election Deduction	(2,028)	(1,659)
Derivative Liability, Collateral, Right to Reclaim Cash, Offset	0	(7)
Derivative Liability, Fair Value, Amount Offset Against Collateral	3,186	2,253
Derivative Liability, Collateral, Right to Reclaim Securities, Offset	(3,186)	(2,251)
Derivative Liability, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election	$ 0	$ 2

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Derivatives (Credit Risk on Freestanding Derivatives) (Details) - Derivatives Subject To Credit-Contingent Provisions - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Credit Derivatives [Line Items]
Estimated fair value of derivatives in a net liability position (1)	$ 3,186	$ 2,260
Fixed maturity securities
Credit Derivatives [Line Items]
Estimated fair value of collateral provided (2):	$ 5,567	$ 4,894

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Derivatives (Derivatives - Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Maximum Length of Time Hedged in Cash Flow Hedge	1 year
Derivative AOCI associated with Cash Flow Hedges Pre Tax	$ 638	$ 509

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Fair Value (Recurring Fair Value Measurements) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Assets [Abstract]
Fixed maturity securities, estimated fair value	$ 75,433	$ 75,577
Equity securities	90	89
Short-term investments	1,003	1,081
Derivative assets	2,516	2,284
Market risk benefit assets	694	483
Separate account assets	82,675	84,965
Liabilities [Abstract]
Market risk benefit liabilities	8,830	10,389	$ 16,034
Derivative liabilities	4,991	3,920
Recurring
Assets [Abstract]
Fixed maturity securities, estimated fair value	75,433	75,577
Equity securities	90	89
Short-term investments	1,003	1,081
Derivative assets	2,516	2,284
Market risk benefit assets	694	483
Separate account assets	82,675	84,965
Total assets	162,411	164,479
Liabilities [Abstract]
Market risk benefit liabilities	8,830	10,389
Derivative liabilities	4,991	3,920
Embedded derivatives on index-linked annuities (2)	6,031	3,932
Total liabilities	19,852	18,241
Recurring | Interest rate
Assets [Abstract]
Derivative assets	447	304
Liabilities [Abstract]
Derivative liabilities	3,478	2,802
Recurring | Foreign currency exchange rate
Assets [Abstract]
Derivative assets	602	745
Liabilities [Abstract]
Derivative liabilities	15	18
Recurring | Credit
Assets [Abstract]
Derivative assets	21	18
Liabilities [Abstract]
Derivative liabilities	1	2
Recurring | Equity market
Assets [Abstract]
Derivative assets	1,446	1,217
Liabilities [Abstract]
Derivative liabilities	1,497	1,098
Recurring | U.S. corporate
Assets [Abstract]
Fixed maturity securities, estimated fair value	32,910	32,607
Recurring | Foreign corporate
Assets [Abstract]
Fixed maturity securities, estimated fair value	10,678	10,576
Recurring | U.S. government and agency
Assets [Abstract]
Fixed maturity securities, estimated fair value	7,802	8,016
Recurring | RMBS
Assets [Abstract]
Fixed maturity securities, estimated fair value	7,051	7,528
Recurring | CMBS
Assets [Abstract]
Fixed maturity securities, estimated fair value	6,308	6,611
Recurring | ABS
Assets [Abstract]
Fixed maturity securities, estimated fair value	6,114	5,359
Recurring | State and political subdivision
Assets [Abstract]
Fixed maturity securities, estimated fair value	3,604	3,799
Recurring | Foreign government
Assets [Abstract]
Fixed maturity securities, estimated fair value	966	1,081
Recurring | Level 1
Assets [Abstract]
Fixed maturity securities, estimated fair value	3,658	3,566
Equity securities	39	35
Short-term investments	675	722
Derivative assets	0	0
Market risk benefit assets	0	0
Separate account assets	16	29
Total assets	4,388	4,352
Liabilities [Abstract]
Market risk benefit liabilities	0	0
Derivative liabilities	0	0
Embedded derivatives on index-linked annuities (2)	0	0
Total liabilities	0	0
Recurring | Level 1 | Interest rate
Assets [Abstract]
Derivative assets	0	0
Liabilities [Abstract]
Derivative liabilities	0	0
Recurring | Level 1 | Foreign currency exchange rate
Assets [Abstract]
Derivative assets	0	0
Liabilities [Abstract]
Derivative liabilities	0	0
Recurring | Level 1 | Credit
Assets [Abstract]
Derivative assets	0	0
Liabilities [Abstract]
Derivative liabilities	0	0
Recurring | Level 1 | Equity market
Assets [Abstract]
Derivative assets	0	0
Liabilities [Abstract]
Derivative liabilities	0	0
Recurring | Level 1 | U.S. corporate
Assets [Abstract]
Fixed maturity securities, estimated fair value	0	0
Recurring | Level 1 | Foreign corporate
Assets [Abstract]
Fixed maturity securities, estimated fair value	0	0
Recurring | Level 1 | U.S. government and agency
Assets [Abstract]
Fixed maturity securities, estimated fair value	3,658	3,566
Recurring | Level 1 | RMBS
Assets [Abstract]
Fixed maturity securities, estimated fair value	0	0
Recurring | Level 1 | CMBS
Assets [Abstract]
Fixed maturity securities, estimated fair value	0	0
Recurring | Level 1 | ABS
Assets [Abstract]
Fixed maturity securities, estimated fair value	0	0
Recurring | Level 1 | State and political subdivision
Assets [Abstract]
Fixed maturity securities, estimated fair value	0	0
Recurring | Level 1 | Foreign government
Assets [Abstract]
Fixed maturity securities, estimated fair value	0	0
Recurring | Level 2
Assets [Abstract]
Fixed maturity securities, estimated fair value	70,257	69,821
Equity securities	26	27
Short-term investments	328	359
Derivative assets	2,489	2,247
Market risk benefit assets	0	0
Separate account assets	82,659	84,936
Total assets	155,759	157,390
Liabilities [Abstract]
Market risk benefit liabilities	0	0
Derivative liabilities	4,990	3,918
Embedded derivatives on index-linked annuities (2)	0	0
Total liabilities	4,990	3,918
Recurring | Level 2 | Interest rate
Assets [Abstract]
Derivative assets	447	304
Liabilities [Abstract]
Derivative liabilities	3,478	2,802
Recurring | Level 2 | Foreign currency exchange rate
Assets [Abstract]
Derivative assets	589	716
Liabilities [Abstract]
Derivative liabilities	15	18
Recurring | Level 2 | Credit
Assets [Abstract]
Derivative assets	14	10
Liabilities [Abstract]
Derivative liabilities	0	0
Recurring | Level 2 | Equity market
Assets [Abstract]
Derivative assets	1,439	1,217
Liabilities [Abstract]
Derivative liabilities	1,497	1,098
Recurring | Level 2 | U.S. corporate
Assets [Abstract]
Fixed maturity securities, estimated fair value	32,086	31,418
Recurring | Level 2 | Foreign corporate
Assets [Abstract]
Fixed maturity securities, estimated fair value	10,362	9,978
Recurring | Level 2 | U.S. government and agency
Assets [Abstract]
Fixed maturity securities, estimated fair value	4,144	4,450
Recurring | Level 2 | RMBS
Assets [Abstract]
Fixed maturity securities, estimated fair value	7,041	7,514
Recurring | Level 2 | CMBS
Assets [Abstract]
Fixed maturity securities, estimated fair value	6,272	6,578
Recurring | Level 2 | ABS
Assets [Abstract]
Fixed maturity securities, estimated fair value	5,815	5,041
Recurring | Level 2 | State and political subdivision
Assets [Abstract]
Fixed maturity securities, estimated fair value	3,604	3,799
Recurring | Level 2 | Foreign government
Assets [Abstract]
Fixed maturity securities, estimated fair value	933	1,043
Recurring | Level 3
Assets [Abstract]
Fixed maturity securities, estimated fair value	1,518	2,190
Equity securities	25	27
Short-term investments	0	0
Derivative assets	27	37
Market risk benefit assets	694	483
Separate account assets	0	0
Total assets	2,264	2,737
Liabilities [Abstract]
Market risk benefit liabilities	8,830	10,389
Derivative liabilities	1	2
Embedded derivatives on index-linked annuities (2)	6,031	3,932
Total liabilities	14,862	14,323
Recurring | Level 3 | Interest rate
Assets [Abstract]
Derivative assets	0	0
Liabilities [Abstract]
Derivative liabilities	0	0
Recurring | Level 3 | Foreign currency exchange rate
Assets [Abstract]
Derivative assets	13	29
Liabilities [Abstract]
Derivative liabilities	0	0
Recurring | Level 3 | Credit
Assets [Abstract]
Derivative assets	7	8
Liabilities [Abstract]
Derivative liabilities	1	2
Recurring | Level 3 | Equity market
Assets [Abstract]
Derivative assets	7	0
Liabilities [Abstract]
Derivative liabilities	0	0
Recurring | Level 3 | U.S. corporate
Assets [Abstract]
Fixed maturity securities, estimated fair value	824	1,189
Recurring | Level 3 | Foreign corporate
Assets [Abstract]
Fixed maturity securities, estimated fair value	316	598
Recurring | Level 3 | U.S. government and agency
Assets [Abstract]
Fixed maturity securities, estimated fair value	0	0
Recurring | Level 3 | RMBS
Assets [Abstract]
Fixed maturity securities, estimated fair value	10	14
Recurring | Level 3 | CMBS
Assets [Abstract]
Fixed maturity securities, estimated fair value	36	33
Recurring | Level 3 | ABS
Assets [Abstract]
Fixed maturity securities, estimated fair value	299	318
Recurring | Level 3 | State and political subdivision
Assets [Abstract]
Fixed maturity securities, estimated fair value	0	0
Recurring | Level 3 | Foreign government
Assets [Abstract]
Fixed maturity securities, estimated fair value	$ 33	$ 38

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Fair Value (Assets and Liabilities Measured - Quantitative Information) (Details) - Level 3	Sep. 30, 2023	Dec. 31, 2022
Measurement Input, Mortality Rate | Minimum
Fair Value, Option, Quantitative Disclosures
Market Risk Benefit, Measurement Input	0.0004	0.0004
Embedded Derivative Liability, Measurement Input	0.0003	0.0003
Measurement Input, Mortality Rate | Maximum
Fair Value, Option, Quantitative Disclosures
Market Risk Benefit, Measurement Input	0.1290	0.1290
Embedded Derivative Liability, Measurement Input	0.0924	0.0924
Measurement Input, Lapse Rate | Minimum
Fair Value, Option, Quantitative Disclosures
Market Risk Benefit, Measurement Input	0.0100	0.0100
Embedded Derivative Liability, Measurement Input	0.0100	0.0100
Measurement Input, Lapse Rate | Maximum
Fair Value, Option, Quantitative Disclosures
Market Risk Benefit, Measurement Input	0.2280	0.2411
Embedded Derivative Liability, Measurement Input	0.6230	0.6230
Measurement Input, Utilization Rate | Minimum
Fair Value, Option, Quantitative Disclosures
Market Risk Benefit, Measurement Input	0.0000	0.0000
Measurement Input, Utilization Rate | Maximum
Fair Value, Option, Quantitative Disclosures
Market Risk Benefit, Measurement Input	0.2500	0.2500
Measurement Input, Withdrawal Rate | Minimum
Fair Value, Option, Quantitative Disclosures
Market Risk Benefit, Measurement Input	0.0000	0.0000
Embedded Derivative Liability, Measurement Input	0.0050	0.0050
Measurement Input, Withdrawal Rate | Maximum
Fair Value, Option, Quantitative Disclosures
Market Risk Benefit, Measurement Input	0.1000	0.1000
Embedded Derivative Liability, Measurement Input	0.0900	0.0900
Measurement Input, Long Term Equity Volatilities | Minimum
Fair Value, Option, Quantitative Disclosures
Market Risk Benefit, Measurement Input	0.1527	0.1999
Measurement Input, Long Term Equity Volatilities | Maximum
Fair Value, Option, Quantitative Disclosures
Market Risk Benefit, Measurement Input	0.2376	0.2845
Measurement Input, Entity Credit Risk | Minimum
Fair Value, Option, Quantitative Disclosures
Market Risk Benefit, Measurement Input	0.0085	(0.0273)
Embedded Derivative Liability, Measurement Input	0.0058	0.0000
Measurement Input, Entity Credit Risk | Maximum
Fair Value, Option, Quantitative Disclosures
Market Risk Benefit, Measurement Input	0.0183	0.0452
Embedded Derivative Liability, Measurement Input	0.0177	0.0198

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Fair Value (Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net Derivatives (2)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance, beginning of period	$ 27	$ 38	$ 35	$ 36
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	2	3	(3)	(11)
Total realized/unrealized gains (losses) included in AOCI	(3)	21	(3)	36
Purchases (5)	0	0	9	1
Sales (5)	0	0	0	0
Issuances (5)	0	0	0	0
Settlements (5)	0	0	0	0
Transfers into Level 3 (6)	0	0	0	0
Transfers out of Level 3 (6)	0	0	(12)	0
Balance, end of period	26	62	26	62
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	3	3	(2)	(4)
Changes in unrealized gains (losses) included in OCI	(3)	21	(3)	36
Embedded Derivatives on Index-Linked Annuities
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance, beginning of period	(6,886)	(2,831)	(3,932)	(6,641)
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	913	518	(1,880)	4,106
Total realized/unrealized gains (losses) included in AOCI	0	0	0	0
Purchases (5)	0	0	0	0
Sales (5)	0	0	0	0
Issuances (5)	0	0	0	0
Settlements (5)	(58)	(29)	(219)	193
Transfers into Level 3 (6)	0	0	0	0
Transfers out of Level 3 (6)	0	0	0	0
Balance, end of period	(6,031)	(2,342)	(6,031)	(2,342)
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	785	461	(2,183)	3,904
Changes in unrealized gains (losses) included in OCI	0	0	0	0
Corporate (1)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	1,931	1,710	1,787	1,399
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	(9)	0	(12)	(6)
Total realized/unrealized gains (losses) included in AOCI	(19)	(108)	(11)	(286)
Purchases (5)	32	278	119	760
Sales (5)	(56)	(22)	(126)	(159)
Issuances (5)	0	0	0	0
Settlements (5)	0	0	0	0
Transfers into Level 3 (6)	45	16	101	31
Transfers out of Level 3 (6)	(784)	(319)	(718)	(184)
Balance, end of period	1,140	1,555	1,140	1,555
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	(9)	0	(11)	0
Changes in unrealized gains (losses) included in OCI	(25)	(109)	(20)	(288)
Structured Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	371	345	365	220
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	0	0	0	0
Total realized/unrealized gains (losses) included in AOCI	(2)	(11)	(2)	(23)
Purchases (5)	17	125	45	230
Sales (5)	(11)	(1)	(17)	(12)
Issuances (5)	0	0	0	0
Settlements (5)	0	0	0	0
Transfers into Level 3 (6)	12	19	10	25
Transfers out of Level 3 (6)	(42)	(138)	(56)	(101)
Balance, end of period	345	339	345	339
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	0	0	0	0
Changes in unrealized gains (losses) included in OCI	(3)	(11)	(3)	(23)
Foreign government
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	38	40	38	26
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	0	0	0	0
Total realized/unrealized gains (losses) included in AOCI	(1)	(4)	0	(13)
Purchases (5)	0	0	0	5
Sales (5)	(1)	(1)	(2)	(2)
Issuances (5)	0	0	0	0
Settlements (5)	0	0	0	0
Transfers into Level 3 (6)	0	0	0	19
Transfers out of Level 3 (6)	(3)	0	(3)	0
Balance, end of period	33	35	33	35
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	0	0	0	0
Changes in unrealized gains (losses) included in OCI	(1)	(4)	0	(13)
Equity Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	25	27	27	13
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	0	1	(3)	1
Total realized/unrealized gains (losses) included in AOCI	0	0	0	0
Purchases (5)	0	0	1	14
Sales (5)	0	0	0	0
Issuances (5)	0	0	0	0
Settlements (5)	0	0	0	0
Transfers into Level 3 (6)	0	0	0	0
Transfers out of Level 3 (6)	0	0	0	0
Balance, end of period	25	28	25	28
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	1	1	(2)	1
Changes in unrealized gains (losses) included in OCI	0	0	0	0
Short-term Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	0	0	0	2
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	0	0	0	0
Total realized/unrealized gains (losses) included in AOCI	0	0	0	0
Purchases (5)	0	0	0	0
Sales (5)	0	0	0	(2)
Issuances (5)	0	0	0	0
Settlements (5)	0	0	0	0
Transfers into Level 3 (6)	0	0	0	0
Transfers out of Level 3 (6)	0	0	0	0
Balance, end of period	0	0	0	0
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	0	0	0	0
Changes in unrealized gains (losses) included in OCI	$ 0	$ 0	$ 0	$ 0

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Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Assets
Policy loans	$ 1,311	$ 1,282
Liabilities
Separate account liabilities	82,675	84,965	$ 81,838
Carrying Value
Assets
Mortgage loans	22,682	22,936
Policy loans	1,311	1,282
Other invested assets	259	213
Premiums, reinsurance and other receivables	7,134	6,080
Liabilities
Policyholder account balances	31,509	31,887
Long-term debt	3,157	3,156
Other liabilities	1,124	943
Separate account liabilities	1,063	1,024
Estimated Fair Value
Assets
Mortgage loans	20,010	20,816
Policy loans	1,365	1,393
Other invested assets	259	213
Premiums, reinsurance and other receivables	7,205	6,230
Liabilities
Policyholder account balances	30,470	30,942
Long-term debt	2,591	2,703
Other liabilities	1,124	943
Separate account liabilities	1,063	1,024
Estimated Fair Value | Level 1
Assets
Mortgage loans	0	0
Policy loans	0	0
Other invested assets	0	0
Premiums, reinsurance and other receivables	0	0
Liabilities
Policyholder account balances	0	0
Long-term debt	0	0
Other liabilities	0	0
Separate account liabilities	0	0
Estimated Fair Value | Level 2
Assets
Mortgage loans	0	0
Policy loans	507	515
Other invested assets	247	201
Premiums, reinsurance and other receivables	64	89
Liabilities
Policyholder account balances	0	0
Long-term debt	2,591	2,703
Other liabilities	436	248
Separate account liabilities	1,063	1,024
Estimated Fair Value | Level 3
Assets
Mortgage loans	20,010	20,816
Policy loans	858	878
Other invested assets	12	12
Premiums, reinsurance and other receivables	7,141	6,141
Liabilities
Policyholder account balances	30,470	30,942
Long-term debt	0	0
Other liabilities	688	695
Separate account liabilities	$ 0	$ 0

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Long-term Debt (Narrative) (Details) - BLIC Repurchase Facility - USD ($) $ in Millions	1 Months Ended
	Jul. 31, 2023	Sep. 30, 2023
Line of Credit Facility [Line Items]
Credit facilities, maximum borrowing capacity	$ 500
Debt instrument, term (in years)	2 years
Credit facilities, outstanding balance		$ 0

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Equity (Preferred Stock) (Details) - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Class of Stock [Line Items]
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	70,100	70,100
Preferred stock, shares outstanding	70,100	70,100
6.600% Non-Cumulative Preferred Stock, Series A
Class of Stock [Line Items]
Preferred stock, annual dividend rate	6.60%	6.60%
Preferred stock, shares authorized	17,000	17,000
Preferred stock, shares issued	17,000	17,000
Preferred stock, shares outstanding	17,000	17,000
6.750% Non-Cumulative Preferred Stock, Series B
Class of Stock [Line Items]
Preferred stock, annual dividend rate	6.75%	6.75%
Preferred stock, shares authorized	16,100	16,100
Preferred stock, shares issued	16,100	16,100
Preferred stock, shares outstanding	16,100	16,100
5.375% Non-Cumulative Preferred Stock, Series C
Class of Stock [Line Items]
Preferred stock, annual dividend rate	5.375%	5.375%
Preferred stock, shares authorized	23,000	23,000
Preferred stock, shares issued	23,000	23,000
Preferred stock, shares outstanding	23,000	23,000
4.625% Non-Cumulative Preferred Stock, Series D
Class of Stock [Line Items]
Preferred stock, annual dividend rate	4.625%	4.625%
Preferred stock, shares authorized	14,000	14,000
Preferred stock, shares issued	14,000	14,000
Preferred stock, shares outstanding	14,000	14,000
Not designated
Class of Stock [Line Items]
Preferred stock, shares authorized	99,929,900	99,929,900
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

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Equity (Preferred Stock Dividends) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Class of Stock [Line Items]
Preferred stock, aggregate dividends declared	$ 26	$ 25	$ 51	$ 53	$ 77	$ 78
6.600% Non-Cumulative Preferred Stock, Series A
Class of Stock [Line Items]
Preferred stock, dividends declared per share	$ 412.50	$ 412.50			$ 1,237.5	$ 1,237.5
Preferred stock, aggregate dividends declared	$ 7	$ 7			$ 21	$ 21
6.750% Non-Cumulative Preferred Stock, Series B
Class of Stock [Line Items]
Preferred stock, dividends declared per share	$ 421.88	$ 421.88			$ 1,265.64	$ 1,265.64
Preferred stock, aggregate dividends declared	$ 7	$ 7			$ 21	$ 21
5.375% Non-Cumulative Preferred Stock, Series C
Class of Stock [Line Items]
Preferred stock, dividends declared per share	$ 335.94	$ 335.94			$ 1,007.82	$ 1,007.82
Preferred stock, aggregate dividends declared	$ 8	$ 7			$ 23	$ 23
4.625% Non-Cumulative Preferred Stock, Series D
Class of Stock [Line Items]
Preferred stock, dividends declared per share	$ 289.06	$ 289.06			$ 867.18	$ 973.17
Preferred stock, aggregate dividends declared	$ 4	$ 4			$ 12	$ 13

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Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	$ (5,881)	$ (4,176)	$ (6,106)	$ 47
OCI before reclassifications	(1,613)	(3,645)	(1,450)	(9,109)
Deferred income tax benefit (expense) (3)	339	766	305	1,913
AOCI before reclassifications, net of income tax	(7,155)	(7,055)	(7,251)	(7,149)
Amounts reclassified from AOCI	51	51	172	170
Deferred income tax benefit (expense) (2)	(12)	(11)	(37)	(36)
Amounts reclassified from AOCI, net of income tax	39	40	135	134
Balance, end of period	(7,116)	(7,015)	(7,116)	(7,015)
Unrealized Investment Gains (Losses), Net of Related Offsets (1)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(5,689)	(3,727)	(6,194)	5,285
OCI before reclassifications	(2,490)	(5,130)	(1,971)	(16,565)
Deferred income tax benefit (expense) (3)	523	1,209	414	3,534
AOCI before reclassifications, net of income tax	(7,656)	(7,648)	(7,751)	(7,746)
Amounts reclassified from AOCI	55	60	175	184
Deferred income tax benefit (expense) (2)	(12)	(13)	(37)	(39)
Amounts reclassified from AOCI, net of income tax	43	47	138	145
Balance, end of period	(7,613)	(7,601)	(7,613)	(7,601)
Unrealized Gains (Losses) on Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	430	534	504	239
OCI before reclassifications	(33)	333	(123)	617
Deferred income tax benefit (expense) (3)	8	(202)	27	(185)
AOCI before reclassifications, net of income tax	405	665	408	671
Amounts reclassified from AOCI	(2)	(9)	(6)	(16)
Deferred income tax benefit (expense) (2)	0	2	1	3
Amounts reclassified from AOCI, net of income tax	(2)	(7)	(5)	(13)
Balance, end of period	403	658	403	658
Changes in Nonperformance Risk on Market Risk Benefits
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(1,475)	(1,350)	(1,378)	(3,230)
OCI before reclassifications	174	130	51	2,510
Deferred income tax benefit (expense) (3)	(37)	(27)	(11)	(527)
AOCI before reclassifications, net of income tax	(1,338)	(1,247)	(1,338)	(1,247)
Amounts reclassified from AOCI	0	0	0	0
Deferred income tax benefit (expense) (2)	0	0	0	0
Amounts reclassified from AOCI, net of income tax	0	0	0	0
Balance, end of period	(1,338)	(1,247)	(1,338)	(1,247)
Changes in Discount Rates on the Liability for Future Policy Benefits
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	905	441	1,020	(2,199)
OCI before reclassifications	744	1,045	598	4,388
Deferred income tax benefit (expense) (3)	(157)	(219)	(126)	(922)
AOCI before reclassifications, net of income tax	1,492	1,267	1,492	1,267
Amounts reclassified from AOCI	0	0	0	0
Deferred income tax benefit (expense) (2)	0	0	0	0
Amounts reclassified from AOCI, net of income tax	0	0	0	0
Balance, end of period	1,492	1,267	1,492	1,267
Other Components of AOCI
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(52)	(74)	(58)	(48)
OCI before reclassifications	(8)	(23)	(5)	(59)
Deferred income tax benefit (expense) (3)	2	5	1	13
AOCI before reclassifications, net of income tax	(58)	(92)	(62)	(94)
Amounts reclassified from AOCI	(2)	0	3	2
Deferred income tax benefit (expense) (2)	0	0	(1)	0
Amounts reclassified from AOCI, net of income tax	(2)	0	2	2
Balance, end of period	$ (60)	$ (92)	$ (60)	$ (92)

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Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment gains (losses)	$ (53)	$ (45)	$ (213)	$ (179)
Net derivative gains (losses)	(840)	(592)	(3,226)	1,331	$ (592)	$ (3,983)
Net investment income	1,202	877	3,457	3,089
Pre-tax adjusted earnings	590	512	(300)	4,692
Income tax (expense) benefit	(109)	(97)	109	(945)
Net income (loss)	453	388	(272)	3,665
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income (loss)	(39)	(40)	(135)	(134)
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized investment gains (losses):
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment gains (losses)	(43)	(39)	(157)	(133)
Net derivative gains (losses)	(12)	(21)	(18)	(51)
Pre-tax adjusted earnings	(55)	(60)	(175)	(184)
Income tax (expense) benefit	12	13	37	39
Net income (loss)	(43)	(47)	(138)	(145)
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Pre-tax adjusted earnings	2	9	6	16
Income tax (expense) benefit	0	(2)	(1)	(3)
Net income (loss)	2	7	5	13
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Interest rate swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net derivative gains (losses)	0	0	(2)	4
Net investment income	1	1	3	3
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Foreign currency swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net derivative gains (losses)	1	8	5	9
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Pre-tax adjusted earnings	2	0	(3)	(2)
Income tax (expense) benefit	0	0	1	0
Amortization of net actuarial gains (losses)	2	0	(3)	(2)
Amortization of defined benefit plans, net of income tax	$ 2	$ 0	$ (2)	$ (2)

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Equity (Common Stock Repurchase Program - Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Class of Stock [Line Items]
Stock repurchase program, aggregate amount repurchased	$ 64	$ 136	$ 126	$ 259
Authorization Under 10b5-1 Plan
Class of Stock [Line Items]
Stock repurchase program, shares repurchased					3,968,138	8,194,191
Stock repurchase program, aggregate amount repurchased					$ 190	$ 395
Stock repurchase program, remaining authorized repurchase amount	$ 104				$ 104

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Other Revenues and Other Expenses (Other Expenses) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Other Income and Expenses [Abstract]
Compensation	$ 98	$ 89	$ 302	$ 254
Contracted services and other labor costs	73	73	221	197
Transition services agreements	7	15	26	44
Establishment costs	0	21	0	47
Premium and other taxes, licenses and fees	15	13	49	41
Separate account fees	93	98	277	314
Volume related costs, excluding compensation, net of DAC capitalization	129	130	409	374
Interest expense on debt	38	38	114	114
Other	20	18	55	211
Total other expenses	$ 473	$ 495	$ 1,453	$ 1,596

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Other Revenues and Other Expenses (Other Revenues - Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Distribution service
Revenue from Contract with Customer, Including Assessed Tax	$ 68	$ 70	$ 201	$ 226

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Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share [Abstract]
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders	$ 453	$ 388	$ (272)	$ 3,665
Weighted average common shares outstanding - basic	65,408,241	71,517,500	66,658,796	74,294,329
Dilutive effect of share-based awards	336,110	441,880	0	482,846
Weighted average common shares outstanding - diluted	65,744,351	71,959,380	66,658,796	74,777,175
Earnings per common share - basic	$ 6.92	$ 5.42	$ (4.08)	$ 49.31
Earnings per common share - diluted	$ 6.89	$ 5.39	$ (4.08)	$ 49.00
Antidilutive stock options excluded from the computation of earnings per common share	187,371	187,371		187,371

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Contingencies, Commitments and Guarantees (Contingencies, Commitments and Guarantees - Narrative) (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Settlement for reinsurance-related matter	$ 20	$ 18		$ 55	$ 211
Cumulative maximum indemnities and guarantees contractual limitation	98			98
Liabilities for indemnities, guarantees and commitments	1			1		$ 1
Non-litigation loss
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Settlement for reinsurance-related matter			$ 140
Minimum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Indemnities and guarantees contractual limitation range	1			1
Minimum | Non-litigation loss
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Loss contingency, range of possible loss, portion not accrued	0			0
Maximum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Loss contingency, range of possible loss, portion not accrued	10			10
Indemnities and guarantees contractual limitation range	92			92
Maximum | Non-litigation loss
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Loss contingency, range of possible loss, portion not accrued	125			125
Mortgage Loan Commitments
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair value disclosure, off-balance sheet risks, face amount, liability	294			294		247
Commitments to Fund Partnership Investments and Private Corporate Bond Investments
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair value disclosure, off-balance sheet risks, face amount, liability	$ 1,400			$ 1,400		$ 1,900