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What Brighthouse Financial (BHF)'s Jump in Profit and Share Buybacks Means for Shareholders

Simply Wall St · 08/13 07:34
  • Brighthouse Financial reported second quarter 2025 results, with revenue of US$871 million and net income of US$85 million, compared to US$1.43 billion and US$34 million respectively a year earlier, while also completing a major share buyback program repurchasing over 6.3 million shares for US$334.77 million.
  • The company highlighted higher profitability despite lower revenue, robust annuity and life insurance sales, expense control, and revised hedging strategies, reinforcing its focus on capital efficiency and operational execution.
  • We'll explore how the significant improvement in profitability and share buybacks influence Brighthouse Financial's longer-term investment outlook.

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Brighthouse Financial Investment Narrative Recap

Owning shares in Brighthouse Financial means believing in the company’s ability to maintain strong annuity and life sales, manage complex product risks, and deliver profitable growth despite industry headwinds. The recent earnings report, with improved profitability but lower revenue, does not materially affect the key short-term catalyst, ongoing growth in annuity sales, or ease the main risk, which is persistent outflows and surrender rates in legacy blocks that may pressure future growth.

Among recent updates, completion of the share buyback program stands out, signaling significant capital returned to shareholders in the past year. While this effort reduces share count and can support earnings per share, it does not address the root challenges associated with Brighthouse's reliance on the variable annuity and Shield blocks, where elevated outflows and surrender rates remain a concern for top-line expansion.

Yet, despite this disciplined approach to capital return, investors should be aware that persistent product outflows could still...

Read the full narrative on Brighthouse Financial (it's free!)

Brighthouse Financial's narrative projects $9.4 billion in revenue and $980.5 million in earnings by 2028. This requires 2.9% yearly revenue growth and a $469.5 million earnings increase from $511.0 million currently.

Uncover how Brighthouse Financial's forecasts yield a $59.44 fair value, a 29% upside to its current price.

Exploring Other Perspectives

BHF Earnings & Revenue Growth as at Aug 2025
BHF Earnings & Revenue Growth as at Aug 2025

Private investor fair value estimates for Brighthouse Financial in the Simply Wall St Community span from US$59.44 to US$112.55, based on two distinct views. While these reflect wide-ranging opinions, the company’s reliance on legacy annuity products remains a concern for future revenue and profit trends, so consider how different viewpoints weigh these structural risks.

Explore 2 other fair value estimates on Brighthouse Financial - why the stock might be worth over 2x more than the current price!

Build Your Own Brighthouse Financial Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your Brighthouse Financial research is our analysis highlighting 4 key rewards that could impact your investment decision.
  • Our free Brighthouse Financial research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Brighthouse Financial's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.