Analogy 1: Prudential Financial for retirement planning and life insurance.

Analogy 2: MetLife's focused spin-off for annuities and individual life insurance.

Analogy 3: A specialized Lincoln Financial Group, emphasizing annuities and life insurance.

• Annuities: Long-term financial products designed to provide a steady income stream, typically during retirement, through a series of payments to the annuitant.
• Life Insurance: Products that provide a financial benefit to designated beneficiaries upon the death of the insured person.

Brighthouse Financial (BHF) primarily sells its products to individuals. Its offerings, such as annuities and life insurance, are designed to meet the financial planning and protection needs of a diverse customer base.

The company serves the following categories of individual customers:

1. Retirees and Pre-Retirees: Individuals who are either nearing retirement or already retired, seeking secure income streams, capital preservation, and solutions for managing longevity risk through annuities.
2. Families and Individuals Seeking Financial Protection: Those looking to protect their loved ones financially in the event of their death through various life insurance products. This category also includes individuals aiming to build cash value for future financial needs.
3. Individuals with Long-Term Savings and Growth Objectives: Customers who want to grow their assets tax-deferred and potentially for retirement, utilizing the investment features of various annuity products, and who may not yet be at the point of needing immediate income.

• MetLife, Inc. (MET)
• Fortitude Re
• SCOR SE (SCR)
• BlackRock, Inc. (BLK)
• The Goldman Sachs Group, Inc. (GS)
• Amazon.com, Inc. (AMZN)
• Tata Consultancy Services (TCS)

Eric Steigerwalt, President and Chief Executive Officer

Eric Steigerwalt has served as the president and chief executive officer of Brighthouse Financial since its launch in 2016. Prior to this, he spent 18 years at MetLife, Inc., holding multiple leadership roles, including executive vice president of MetLife's U.S. Retail business (2012-2016), interim chief financial officer (2011-2012), chief financial officer for MetLife's U.S. businesses (2009-2011), and treasurer (2007-2009). He began his career at MetLife in 1998, managing aspects of the company's demutualization and IPO, and later became its first head of investor relations. Before joining MetLife, he worked in finance at Equitable Companies and as a derivatives trader at Fossett Corporation.

Edward Spehar, Executive Vice President and Chief Financial Officer

Edward (Ed) Spehar joined Brighthouse Financial as executive vice president and chief financial officer in July 2019. Previously, he was executive vice president and treasurer of MetLife, where he was responsible for the strategic management of financial resources. Spehar's tenure at MetLife began in 2012 as senior vice president and head of investor relations, and he later served as the chief financial officer of MetLife's EMEA (Europe, Middle East, and Africa) segment. Before MetLife, he spent 23 years as an equity research analyst covering the life insurance industry, with 19 years as a sell-side equity research analyst at Bank of America Merrill Lynch, where he was consistently recognized by Institutional Investor magazine's annual All-America Research Team.

Myles J. Lambert, Executive Vice President and Chief Distribution and Marketing Officer

Myles Lambert is the executive vice president and chief distribution and marketing officer for Brighthouse Financial, where he oversees the distribution of annuity and life insurance solutions through third-party partners, manages the wholesaling organization, sales desk, strategic relationship management, and training, and leads all marketing and branding efforts. Prior to his current role, Lambert was senior vice president of MetLife, Inc.'s Northeast Region for the MetLife Premier Client Group (MPCG), and was also responsible for leading the MPCG proprietary wholesaling organization for annuity, life, and disability insurance. Before joining MetLife, he served as executive director and business head for the insurance and annuity business at Morgan Stanley, and held senior leadership roles at Morgan Stanley and Smith Barney.

John L. Rosenthal, Executive Vice President and Chief Investment Officer

John Rosenthal serves as executive vice president and chief investment officer at Brighthouse Financial, responsible for the overall management of the company's investment portfolio. He previously held the position of executive vice president and head of global portfolio management at MetLife Investments. Over his 32-year career at MetLife, Rosenthal held various leadership roles, including managing director of the investments institutional portfolio management business, co-head of fixed income and equity investments, and head of core securities.

Jeff Hughes, Executive Vice President and Chief Technology Officer

Jeff Hughes is the executive vice president and chief technology officer at Brighthouse Financial, overseeing all information technology and cybersecurity, and developing the company's technology strategy. He brings over 25 years of experience in IT management and strategic consulting. Prior to Brighthouse Financial, he was senior vice president of information technology at CNA Financial, where he was responsible for systems development, technology strategy, and vendor management. Hughes also served as a partner in the insurance and technology practices of McKinsey & Company and at Diamond Management and Technology Partners (now PwC Diamond Advisory Services), and as a nuclear physicist in the U.S. Naval Reactors Program.

The key risks to Brighthouse Financial (BHF) primarily revolve around its exposure to market fluctuations, challenges in maintaining capital and statutory earnings power, and the complexities associated with its legacy variable annuity products and hedging strategies.

1. Market Risk and Investment Portfolio Volatility: Brighthouse Financial is highly susceptible to interest rate fluctuations, equity market volatility, and credit risks, which can significantly impact its investment income and overall profitability. This is particularly relevant for its variable annuity products and fee-based income, where declines in equity markets can directly reduce revenues.
2. Capital and Statutory Earnings Power: The company faces ongoing challenges in generating sufficient capital and statutory earnings, and in maintaining its Risk-Based Capital (RBC) ratio at desired levels. There have been instances of persistent statutory and GAAP losses, with reports indicating struggles to meet industry standards for RBC and requiring capital infusions to strengthen its position.
3. Legacy Variable Annuities and Hedging Strategy Effectiveness: Brighthouse Financial inherited a significant block of unprofitable legacy variable annuities from its spin-off from MetLife, which continues to burden its earnings. The effectiveness of its hedging strategies for these variable annuities and its newer Registered Index-Linked Annuities (RILAs) is crucial, as an ineffective strategy can lead to substantial volatility in profitability measures and negatively affect statutory capital.

Brighthouse Financial's main products are annuities and life insurance, primarily serving the U.S. market.

Addressable Market Sizes (U.S. Region)

Annuities

• The total U.S. annuity market sales reached $434.1 billion in 2024. Projections for total annuity sales in 2025 are expected to surpass $450 billion.
• The U.S. annuity market value is expected to reach approximately US$388.42 billion by 2029, growing at a CAGR of 5.98% during the forecast period.
• Fixed Annuities: Fixed-income annuities dominated the market with $248 billion in sales in 2024. Fixed-rate deferred (FRD) annuity sales were around $160 billion in 2024. Year-to-date FRD annuity sales increased 2% year over year to $126.6 billion in 2025.
• Fixed Indexed Annuities (FIAs): Sales were $126.9 billion in 2024. In 2025, FIA sales are projected to drop 5-10% from the 2024 record but remain above $100 billion.
• Registered Index-Linked Annuities (RILAs): Sales reached $65.4 billion in 2024. In the third quarter of 2025, RILA sales were $20.6 billion, a 20% increase from the prior year. Year-to-date RILA sales in 2025 totaled $57.3 billion.
• Variable Annuities: Traditional variable annuity sales reached nearly $60 billion in 2024, with 2025 sales projected to remain level with 2024 results. Year-to-date traditional variable annuity sales were $46.9 billion in 2025, up 6% compared to the same period in 2024.
• Income Annuities: Projected to be between $16 billion and $18 billion in 2025.

Life Insurance

• The U.S. life insurance market was valued at $1.46 trillion in 2024 and is expected to grow to $2.42 trillion by 2034. Another estimate places the U.S. life insurance market size at $1.93 trillion in 2024, predicted to reach approximately $4.74 trillion by 2034.
• U.S. individual life insurance new annualized premium rose 8% year over year to $3.94 billion in the first quarter of 2025. Total new annualized premium for U.S. individual life insurance reached $16.2 billion in 2024.
• Universal Life Insurance: The U.S. universal life insurance market was valued at $17.3 billion in 2024. The global market for Universal Life Insurance was estimated at US$63.7 billion in 2024 and is projected to reach US$95.3 billion by 2030.
• Indexed Universal Life (IUL): Accounts for 24% of the U.S. market, with premiums reaching $3.8 billion in 2024. Sales grew 11% in the first quarter of 2025 to $959 million. The Indexed Universal Life Insurance segment is expected to reach US$58.6 billion by 2030.
• Variable Universal Life (VUL): New premium increased 41% in the first quarter of 2025 to $533 million. VUL premiums represented 14% of the U.S. life insurance market's total in the first quarter of 2025.
• Term Life Insurance: Held 19% of the U.S. market share in the first quarter of 2025.

Expected Drivers of Future Revenue Growth for Brighthouse Financial (BHF)

Over the next 2-3 years, Brighthouse Financial's (BHF) revenue growth is expected to be driven by several key factors, significantly influenced by its pending acquisition by Aquarian Capital and continued product strength.

1. Enhanced Growth Opportunities and Asset Generation Post-Merger: The definitive merger agreement with Aquarian Capital, anticipated to close in 2026, is poised to enhance Brighthouse Financial's growth opportunities and asset-generation capabilities. This strategic move is expected to better position the company in the evolving insurance market.
2. Continued Strong Sales of Shield Level Annuities: Brighthouse Financial has consistently reported strong sales of its Shield Level Annuities, with these products being a primary contributor to total annuity sales. This trend is expected to continue driving revenue growth in the annuity segment.
3. Growth in Life Insurance Sales, Particularly Brighthouse SmartCare: The company has noted increases in life insurance sales, specifically driven by its Brighthouse SmartCare product. This product line is expected to contribute to future revenue expansion within the life segment.
4. Strategic Expansion into the Institutional Market with BlackRock's LifePath Paycheck: Brighthouse Financial's collaboration with BlackRock's LifePath Paycheck (LPP) product, which is expanding into employer retirement plans, represents a strategic initiative to reach new customers through the worksite channel. This expansion into the institutional space is a prospective driver of future revenue.
5. Favorable Demographics and Capital Efficiency Initiatives: The aging U.S. demographic is expected to continue boosting demand for annuity products, providing a tailwind for Brighthouse Financial's offerings. Furthermore, ongoing strategic initiatives aimed at improving capital efficiency, such as simplifying hedging strategies and reinsurance transactions, can unlock capital. This freed-up capital can then be deployed into growth initiatives, indirectly supporting revenue expansion.

Share Repurchases

• Brighthouse Financial authorized a new $750 million stock repurchase program in November 2023. This was in addition to a $1 billion authorization from August 2021, of which $71 million remained as of November 15, 2023.
• From August 2018 through November 15, 2023, the company repurchased approximately $2.2 billion of its common stock, reducing shares outstanding by over 46%.
• In the full year 2024, Brighthouse Financial repurchased $250 million of its common stock, reducing shares outstanding by approximately 8% relative to year-end 2023.

Share Issuance

• Brighthouse Financial has seen a decrease in its shares outstanding, indicating a focus on share repurchases rather than issuances. As of November 5, 2025, the number of outstanding shares was 57.15 million, a decrease from 79.82 million in 2021.

Inbound Investments

• Aquarian Capital LLC entered into a definitive agreement to acquire Brighthouse Financial for $4.1 billion, with shareholders receiving $70 per share in cash.
• The acquisition represents a 37% premium to Brighthouse's closing price on Wednesday, November 5, 2025, and is expected to close in 2026.
• Following the acquisition, Brighthouse Financial is expected to operate as a standalone entity within Aquarian Capital's portfolio, retaining its brand, headquarters, and current CEO.

Capital Expenditures

• Brighthouse Financial has reported minimal capital expenditures, with a trailing twelve months (ttm) capital expenditure of $0.