Brighthouse Financial, Inc., the US-domiciled annuities and life insurance provider, has completed a reinsurance transaction with a third party to reinsure a legacy block of its fixed and payout annuities.
The transaction was previously discussed on the company’s earnings call for the quarter ended September 30, 2024, during which it revealed that year-to-date total annuity sales were flat, and third quarter year-to-date total life sales increased 19% compared with the same period in 2023.
Eric Steigerwalt, President and Chief Executive Officer, Brighthouse Financial, commented on the transaction, “This transaction reflects our ongoing progress against several strategic initiatives designed to improve capital efficiency, unlock capital and return to our target combined risk-based capital, or RBC, ratio range in normal market conditions.
“As a result of this transaction, our estimated combined RBC ratio as of the end of the third quarter increased to between 400% and 420%, which is within our target range of 400% to 450% in normal market conditions.”
During its Q3 2024 results, Brighthouse also reported the repurchase of approximately $64 million of its common stock, with an additional approximately $25 million of its common stock repurchased, on a trade date basis, through November 1st, 2024.
