Overview

* Quarterly adjusted EPS and adjusted net income rise YoY but missed analysts' expectations

* Net income for Q3 rises significantly due to favorable actuarial adjustments

* Brighthouse Financial ( BHF ) announced, earlier on Thursday, co will be acquired by Aquarian Capital in $4.1 bln deal

Outlook

* Brighthouse Financial ( BHF ) expects to remain within RBC ratio target range of 400%-450% by year-end 2025

* Company anticipates annual actuarial review will increase statutory reserves

Result Drivers

* ANNUITY SALES - Record sales of Shield Level Annuities drove an 8% increase in annuity sales quarter-over-quarter

* LIFE SALES - Life sales increased 27% quarter-over-quarter, driven by Brighthouse SmartCare

* ACTUARIAL REVIEW IMPACT - Net income boosted by $316 mln favorable impact from annual actuarial review

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $4.54 $5 (9

Adjusted Analysts

EPS )

Q3 EPS $7.89

Q3 Miss $261 mln $272 mln

Adjusted (6

Net Analysts

Income )

Q3 Net $453 mln

Income

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the multiline insurance & brokers peer group is "buy"

* Wall Street's median 12-month price target for Brighthouse Financial Inc ( BHF ) is $54.00, about 21.7% above its November 6 closing price of $65.70

* The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 2 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)