Brighthouse Financial reported third‑quarter 2025 results that showed net income of $453 million, a 200 % increase from $150 million in the same quarter of 2024. Adjusted earnings rose to $970 million from $767 million year‑ago, while GAAP earnings per diluted share climbed to $7.89 from $2.47. The company’s adjusted EPS, however, was $4.54, missing the consensus estimate of $5.09 by $0.55, and revenue was $1.82 billion, below analyst expectations of roughly $2.25 billion.
The sharp rise in net income was largely driven by a $316 million favorable impact from the annual actuarial review and record sales of Shield Level and fixed annuities. These factors offset higher claim costs and a modest decline in revenue, which caused the adjusted EPS miss. Revenue fell because demand in non‑annuity segments weakened, reflecting broader market softness and increased competition for life‑insurance products. The company’s risk‑based capital ratio remained comfortably within the target range of 435 %–455 %, underscoring its strong capital position.
Brighthouse also announced a definitive merger agreement with Aquarian Capital, valuing the company at $70 per share for a total of about $4.1 billion. CEO Eric Steigerwalt called the deal a “transformative transaction” and a “new chapter,” while Aquarian’s founder Rudy Sahay said the acquisition “aligns perfectly with our strategic focus on the United States retirement market.” The premium offered by Aquarian is expected to provide immediate value to shareholders and signals confidence in Brighthouse’s annuity platform.
Investors reacted to the announcement by focusing on the acquisition premium, which helped offset concerns about the earnings miss. The market’s muted but positive response reflects the weight of the $4.1 billion deal relative to the company’s quarterly performance. Analysts noted that while the adjusted EPS and revenue fell short of estimates, the strong capital position and record annuity sales provide a solid foundation for future growth.
Looking ahead, Brighthouse has not issued new guidance, but its robust capital buffer and continued demand for annuity products suggest resilience. Management emphasized the importance of maintaining cost discipline while investing in product innovation. The company faces headwinds from weaker revenue in legacy life‑insurance segments, but the acquisition is expected to broaden its distribution network and enhance its investment‑management capabilities, positioning Brighthouse for long‑term value creation.
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