We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (22,300)
  • Industry Conferences (2)
  • Industry Job Openings (21)
  • Moore on the Market (513)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (832)
  • Wink's Articles (379)
  • Wink's Inside Story (307)
  • Wink's Press Releases (129)
  • Blog Archives

  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • AM Best Revises Issuer Credit Rating Outlook to Negative for Brighthouse Financial, Inc. and Its Subsidiaries

    January 14, 2025 by AM Best

    OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has revised the outlooks to negative from stable for the Long-Term Issuer Credit Ratings (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) of Brighthouse Life Insurance Company (headquartered in Charlotte, NC), New England Life Insurance Company (Boston, MA) and Brighthouse Life Insurance Company of NY (New York, NY). These entities are collectively referred to as Brighthouse and are operating as insurance subsidiaries of Brighthouse Financial, Inc. (Brighthouse Financial) (headquartered in Charlotte, NC) [NASDAQ: BHF]. The outlook of the FSR is stable.

    Concurrently, AM Best has revised the outlook of the Long-Term ICR to negative from stable and affirmed the Long-Term ICR of “bbb+” (Good) and the Long-Term Issue Credit Ratings (Long-Term IR) of Brighthouse Financial. Additionally, AM Best has revised the outlook to negative from stable and affirmed the Long-Term ICR of “bbb+” (Good) and the Long-Term IR of Brighthouse Holdings, LLC, Brighthouse Financial’s intermediate holding company subsidiary. (See below for a detailed listing of the Long-Term IRs.)

    These Credit Ratings (ratings) reflect Brighthouse’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

    The revision of the Long-Term ICRs outlook to negative was driven by the decline of Brighthouse’s operating performance. The operating performance has been dragged by the performance of the variable annuity (VA) and growth in registered index linked annuity (RILA) lines of business, along with associated hedging programs. The losses in the VA and RILA lines of business were driven by strong equity markets and the structure of the hedging program. At the start of third-quarter 2024, Brighthouse began to hedge new sales of its RILA products separately from legacy VA, after previously hedging them together. The run-off block the company inherited when it spun off from MetLife, Inc. has also contributed negatively to earnings. The company has experienced a statutory net loss of ($2.6) billion at year-end 2023, and a net loss of ($1.3) billion through third-quarter 2024.

    Brighthouse’s risk-adjusted capitalization declined from the prior year’s level, at year-end 2023, as measured by Best’s Capital Adequacy Ratio (BCAR). The decline in BCAR was driven by an adjustment made to available capital for a portion of the net loss experienced in 2023. The balance sheet has experienced a 9.5% decline in statutory combined total adjusted capital at third-quarter 2024 to $5.7 billion from $6.3 billion at year-end 2023. While statutory combined total adjusted capital has declined, the company has expanded hedging on a standalone basis for new and existing Shield business that should provide greater protection of the RBC ratio, maintain sufficient assets above CTE98, and reduce new business strain. Brighthouse had an estimated combined RBC ratio of 400 to 420% at third-quarter 2024, consistent with its target range of 400 to 450% in normal markets. Brighthouse has employed a number of initiatives in 2024 to support the strength of its balance sheet, including completion of a reinsurance transaction with a third party to reinsure a legacy block of fixed and payout annuities, and a change in the company’s hedging program to be less capital intensive.

    Brighthouse’s business profile assessment is indicative of its diverse product offerings, diverse distribution network and good geographic diversification, which is reflective of its exposure to riskier product lines such as its ULSG and VA legacy businesses. Brighthouse’s ERM program is appropriate for its risk profile.

    The following Long-Term IRs have been affirmed with revised outlooks to negative from stable:

    Brighthouse Financial, Inc.—
    — “bbb+” (Good) on $1.5 billion 3.7% senior unsecured notes, due 2027 ($757 million remains outstanding)
    — “bbb+” (Good) on $615 million 5.625% senior unsecured notes, due 2030
    — “bbb+” (Good) on $1.5 billion 4.7% senior unsecured notes, due 2047 ($1.0 billion remains outstanding)
    — “bbb+” (Good) on $400 million 3.85% senior unsecured notes, due 2051
    — “bbb-” (Good) on $375 million 6.25% junior subordinated debentures, due 2058
    — “bbb-” (Good) on $425 million 6.6% non-cumulative preferred stock, Series A
    — “bbb-” (Good) on $402.5 million 6.75% non-cumulative preferred stock, Series B
    — “bbb-” (Good) on $575 million 5.375% non-cumulative preferred stock, Series C
    — “bbb-” (Good) on $350 million 4.625% non-cumulative preferred stock, Series D

    Brighthouse Holdings, LLC—
    — “bbb-” (Good) on $50 million fixed rate cumulative preferred units, Series A

    The following Long-Term IR has been affirmed with revised outlook to negative from stable:

    Brighthouse Financial Institutional Funding I, LLC—
    — “a+” (Excellent) program rating

    The following indicative Long-Term IRs have been affirmed with revised outlooks to negative from stable:

    Brighthouse Financial, Inc.—
    — “bbb+” (Good) on senior unsecured debt
    — “bbb” (Good) on subordinated debt
    — “bbb-” (Good) on preferred stock
    — “bbb-” (Good) on junior subordinated debt

    This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

    AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

    Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

    Contacts

    Michael Lynch
    Financial Analyst
    +1 908 882 2077
    michael.lynch@ambest.com

    Kate Steffanelli
    Associate Director
    +1 908 882 2337
    kate.steffanelli@ambest.com

    Christopher Sharkey
    Associate Director, Public Relations
    +1 908 882 2310
    christopher.sharkey@ambest.com

    Al Slavin
    Senior Public Relations Specialist
    +1 908 882 2318
    al.slavin@ambest.com

    Originally Posted at Business Wire on January 10, 2025 by AM Best.

    Categories: Industry Articles
    currency