Brighthouse Financial Q1 Earnings Miss Estimates on Lower Premiums

Brighthouse Financial, Inc. BHF reported first-quarter 2026 adjusted net income of $4.35 per share, which missed the Zacks Consensus Estimate by 8.4%. However, the bottom line grew 4.3% year over year.The quarterly results reflected lower premiums, a decline in adjusted net investment income and lower sales, offset by reduced expenses.Brighthouse Financial, Inc. Price, Consensus and EPS Surprise Brighthouse Financial, Inc. price-consensus-eps-surprise-chart | Brighthouse Financial, Inc. QuoteBehind the HeadlinesTotal operating revenues of $2.1 billion decreased 3.4% year over year, due to lower premiums, universal life and investment-type product policy fees, net investment income and other revenues. Premiums of $168 million decreased 9.7% year over year.Adjusted net investment income was $1.3 billion in the quarter under review, down 1.8% year over year, primarily due to a reduction in the size of the institutional spread margin business. The investment income yield was 4.24%.Total expenses were $2.5 billion, which declined 8.4% year over year. Corporate expenses, pretax, were $227 million, which declined 5% year over year.Quarterly Segmental Update of BHFAnnuities recorded an adjusted operating income of $324 million, up 3.2% year over year. Annuity sales decreased 4% year over year to $2.2 billion.Life’s adjusted operating loss was $6 million against earnings of $9 million in the year-ago reported quarter. It reflected a lower underwriting margin and lower net investment income, partially offset by lower expenses. Life insurance sales decreased 11% quarter over quarter to $32 million.Adjusted operating loss at Run-off was $48 million, narrower than the year-ago loss of $64 million. It reflects a higher underwriting margin and lower expenses.Corporate & Other incurred an adjusted operating loss of $31 million, wider than the year-ago loss of $24 million, reflecting lower net investment income, partially offset by a higher tax benefit.Financial Update of BHFCash and cash equivalents were $4.9 billion, up 5.1% year over year.Shareholders’ equity of $5.5 billion at the end of the first quarter of 2026 increased 6.2% year over year.Book value per share, excluding accumulated other comprehensive income, was $139.63 as of March 31, 2026, down 1.6% year over year.Statutory combined total adjusted capital was $5 billion as of March 31, 2026, down 9.1% year over year.As of March 31, 2026, the estimated combined risk-based capital ratio was between 430% and 450%.Zacks RankBrighthouse Financial currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other Life InsurersVoya Financial, Inc. VOYA reported first-quarter 2026 adjusted operating earnings of $2.26 per share, which beat the Zacks Consensus Estimate by 11.8%. The bottom line increased 13% year over year. Adjusted operating revenues amounted to $2 billion, which increased 3.1% year over year. Net investment income increased 1.6% year over year to $569 million. Meanwhile, fee income of $604 million increased 6% year over year. Premiums totaled $744 million, up 1% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 0.3% from the year-ago quarter. As of March 31, 2026, VOYA’s assets under management, administration, and advisement totaled $1.1 trillion.Sun Life Financial Inc. SLF delivered first-quarter 2026 underlying net income of $1.38 per share, which beat the Zacks Consensus Estimate by 2.2%. The bottom line increased 8.7% year over year. Underlying net income was $765 million (C$1 billion), which increased 5.2% year over year. Revenues of $6.4 billion decreased 18.9% year over year. Asset management gross flows & wealth sales of $45.4 billion (C$62.3 billion) increased 4.8% year over year. Group - Health & Protection sales of $402 million (C$552 million) declined 0.4% year over year. Individual - Protection sales of $840 million (C$1.15 billion) jumped 38.1% year over year. New business contractual service margin (CSM) was $313 million (C$429 million), up 11% year over year.Reinsurance Group of America, Incorporated RGA reported first-quarter 2026 adjusted operating earnings of $6.97 per share, which beat the Zacks Consensus Estimate by 12.6%. The bottom line rose 21.9% from the year-ago quarter’s figure. RGA's operating revenues of $6.6 billion beat the Zacks Consensus Estimate by 3.7%. The top line improved 19.9% year over year on higher net investment income, net premiums and other revenues.Net premiums of $4.6 billion increased 14.3% year over year and beat the Zacks Consensus Estimates by 2.4%. Investment income improved 19.3% from the prior-year quarter to $1.7 billion and beat the Zacks Consensus Estimates by 7.4%. The average investment yield increased to 4.9% from 4.6% in the prior-year period. Total benefits and expenses increased 23.8% year over year to $6.1 billion.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. 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