Segment Information

12 Months Ended

Dec. 31, 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 consolidated financial statements, except for the adjustments to calculate adjusted earnings described above. In addition, segment accounting policies include the methods of capital allocation described below.

Segment investment and capitalization targets are based on statutory oriented risk principles and metrics. Segment invested assets backing liabilities are based on net statutory liabilities plus excess capital. For the variable annuity business, the excess capital held is based on the target statutory total asset requirement consistent with the Company’s variable annuity risk management strategy. For insurance businesses other than variable annuities, excess capital held is based on a percentage of required statutory risk-based capital (“RBC”). Assets in excess of those allocated to the segments, if any, are held in Corporate & Other. Segment net investment income reflects the performance of each segment’s respective invested assets.

Operating results by segment, as well as Corporate & Other, were as follows:

	Year Ended December 31, 2023
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	1,437	$	(69)	$	(100)	$	21	$	1,289
Provision for income tax expense (benefit)	268		(16)		(23)		(16)		213
Post-tax adjusted earnings	1,169		(53)		(77)		37		1,076
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		5		5
Less: Preferred stock dividends	—		—		—		102		102
Adjusted earnings	$	1,169	$	(53)	$	(77)	$	(70)	969
Adjustments for:
Net investment gains (losses)									(246)
Net derivative gains (losses), excluding investment hedge adjustments of $105									(4,012)
Change in market risk benefits									1,507
Market value adjustments									(12)
Provision for income tax (expense) benefit									580
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders									$	(1,214)
Interest revenue	$	2,568	$	437	$	1,141	$	623
Interest expense	$	—	$	—	$	—	$	153

	Year Ended December 31, 2022
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	1,317	$	94	$	109	$	(68)	$	1,452
Provision for income tax expense (benefit)	247		16		22		(126)		159
Post-tax adjusted earnings	1,070		78		87		58		1,293
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		5		5
Less: Preferred stock dividends	—		—		—		104		104
Adjusted earnings	$	1,070	$	78	$	87	$	(51)	1,184
Adjustments for:
Net investment gains (losses)									(248)
Net derivative gains (losses), excluding investment hedge adjustments of $71									(663)
Change in market risk benefits									4,104
Market value adjustments									87
Provision for income tax (expense) benefit									(689)
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders									$	3,775
Interest revenue	$	2,261	$	442	$	1,166	$	340
Interest expense	$	—	$	—	$	—	$	153

	Year Ended December 31, 2021
	Annuities		Life		Run-off		Corporate & Other		Total
	(In millions)
Pre-tax adjusted earnings	$	1,589	$	422	$	265	$	(355)	$	1,921
Provision for income tax expense (benefit)	303		88		59		(109)		341
Post-tax adjusted earnings	1,286		334		206		(246)		1,580
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		5		5
Less: Preferred stock dividends	—		—		—		89		89
Adjusted earnings	$	1,286	$	334	$	206	$	(340)	1,486
Adjustments for:
Net investment gains (losses)									(59)
Net derivative gains (losses), excluding investment hedge adjustments of $21									(4,004)
Change in market risk benefits									4,134
Market value adjustments									17
Provision for income tax (expense) benefit									(20)
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders									$	1,554
Interest revenue	$	2,217	$	698	$	1,910	$	77
Interest expense	$	—	$	—	$	—	$	163

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

	Years Ended December 31,
	2023		2022		2021
	(In millions)
Annuities	$	4,878	$	4,526	$	4,903
Life	1,229		1,213		1,633
Run-off	1,643		1,705		2,426
Corporate & Other	625		340		77
Adjustments	(4,258)		(911)		(4,063)
Total	$	4,117	$	6,873	$	4,976

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

	December 31,
	2023		2022
	(In millions)
Annuities	$	160,775	$	151,192
Life	25,504		22,057
Run-off	26,828		28,436
Corporate & Other	23,233		23,162
Total	$	236,340	$	224,847

Total premiums, universal life and investment-type product policy fees and other revenues by major product group were as follows:

	Years Ended December 31,
	2023		2022		2021
	(In millions)
Annuity products	$	2,319	$	2,268	$	2,691
Life insurance products	1,280		1,298		1,436
Other products	7		9		10
Total	$	3,606	$	3,575	$	4,137

Substantially all of the Company’s premiums, universal life and investment-type product policy fees and other revenues originated in the U.S.

Revenues derived from any individual customer did not exceed 10% of premiums, universal life and investment-type product policy fees and other revenues for the years ended December 31, 2023, 2022 and 2021.