Brighthouse Financial, Inc.

Results of Operations

Consolidated Results for the Three Months and Six Months Ended June 30, 2025 and 2024

Unless otherwise noted, all amounts in the following discussions of our results of operations are stated before income tax except for adjusted earnings, which are presented net of income tax.

The components of net income (loss) available to shareholders were as follows:

Income available to shareholders before provision for income tax was $68 million ($60 million, net of income tax), an increase of $79 million ($51 million, net of income tax) from loss available to shareholders before provision for income tax of $11 million ($9 million, net of income tax) in the prior period.

The increase in income before provision for income tax was driven by the following favorable items:

•gains from variable annuity guaranteed benefit riders, see “— Annuity Guaranteed Benefits and Shield Annuity Liabilities for the Three Months and Six Months Ended June 30, 2025 and 2024”; and

•net investment gains (losses) reflecting lower net losses on sales of fixed maturity securities.

The increase in income before provision for income taxes was partially offset by the following unfavorable items:

•lower pre-tax adjusted earnings, as discussed in greater detail below;

•the impact of long-term interest rates on interest rate derivatives used to manage interest rate exposure in our ULSG business, as the long-term interest rate increased in the current period, resulting in a loss of $154 million, and increased in the prior period, resulting in a loss of $97 million; and

•the weakening of the U.S. dollar more in the current period than the prior period, unfavorably impacting foreign currency forwards and swaps.

The provision for income tax, expressed as a percentage of income (loss) before provision for income tax, resulted in a higher effective tax rate in the current period compared to the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction and tax credits.

The loss available to shareholders before provision for income tax was $314 million ($234 million, net of income tax), a lower loss of $339 million ($276 million, net of income tax) from loss available to shareholders before provision for income tax of $653 million ($510 million, net of income tax) in the prior period.

The lower loss before provision for income tax was driven by the following favorable items:

•higher pre-tax adjusted earnings, as discussed in greater detail below;

•the impact of long-term interest rates on interest rate derivatives used to manage interest rate exposure in our ULSG business, as the long-term interest rate decreased in the current period, resulting in a loss of $132 million, and increased in the prior period, resulting in a loss of $309 million; and

•net investment gains (losses) reflecting lower net losses on sales of fixed maturity securities, partially offset by higher net losses on mortgage loans due to an increase in the allowance for credit losses.

The lower loss before provision for income tax was partially offset by the following unfavorable items:

•the weakening of the U.S. dollar in the current period and strengthening in the prior period, unfavorably impacting foreign currency forwards and swaps; and

•higher losses from variable annuity guaranteed benefit riders, see “— Annuity Guaranteed Benefits and Shield Annuity Liabilities for the Three Months and Six Months Ended June 30, 2025 and 2024.”

The provision for income tax, calculated as a percentage of income (loss) before provision for income tax, resulted in an effective tax rate of 31% in the current period compared to 24% in the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction, tax credits and current period non-recurring items.

Reconciliation of Net Income (Loss) Available to Shareholders to Adjusted Earnings (Loss)

The reconciliation of net income (loss) available to shareholders to adjusted earnings (loss) was as follows:

Consolidated Results for the Three Months and Six Months Ended June 30, 2025 and 2024 — Adjusted Earnings (Loss)

The components of adjusted earnings (loss) were as follows:

Adjusted earnings were $198 million in the current period, a decrease of $148 million.

•higher net costs associated with insurance-related activities due to:

◦higher claims, net of reinsurance in our Life and Run-off segments;

◦an increase in income annuity underwriting margins;

•lower net investment spread due to:

◦higher interest credited to policyholders due to higher account balances; and

◦lower returns on other limited partnerships;

◦higher returns on real estate limited partnerships and limited liability companies (“LLC”); and

•lower net fee income due to:

◦lower asset-based fees resulting from lower average separate account balances, a portion of which is offset in other expenses; and

◦a decline in the net cost of insurance fees driven by the aging in-force business in our Run-off segment;

◦lower ceded cost of insurance fees consistent with favorable equity market returns in our Life segment, which is offset in other expenses; and

◦lower ceded cost of insurance expenses consistent with favorable equity market returns in our Life segment, which is offset in fee income; and

◦higher deferred compensation and operational expenses;

◦lower asset-based variable annuity expenses resulting from lower average separate account balances, a portion of which is offset in fee income.

The provision for income tax, expressed as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 17% in the current period compared to 16% in the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction and tax credits.

Adjusted earnings were $433 million in the current period, an increase of $185 million.

•lower net costs associated with insurance-related activities due to:

◦a decrease in liability balances in our Run-off segment resulting from a reinsurance premium rate increase associated with the conclusion of a reinsurance arbitration in the prior period; and

◦an increase in income annuity underwriting margins;

◦higher claims, net of reinsurance, in our Life segment;

•higher net fee income due to:

◦lower ceded cost of insurance fees in our Life and Run-off segments related to the conclusion of the aforementioned reinsurance arbitration in the prior period;

◦lower asset-based fees resulting from lower average separate account balances, a portion of which is offset in other expenses; and

◦a decline in the net cost of insurance fees driven by the aging in-force business in our Run-off segment; and

◦the conclusion of the aforementioned reinsurance arbitration in our Life and Run-off segments in the prior period;

◦lower asset-based variable annuity expenses resulting from lower average separate account balances, a portion of which is offset in fee income; and

◦lower transition services agreement expenses;

The key unfavorable impact was a lower net investment spread due to higher interest credited to policyholders due to higher account balances and actuarial modeling improvements in our Annuities segment.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 17% in both the current period and the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction, tax credits and current period non-recurring items.

Segment Results for the Three Months and Six Months Ended June 30, 2025 and 2024 — Adjusted Earnings (Loss)

Annuities

The components of adjusted earnings for our Annuities segment were as follows:

A significant portion of our adjusted earnings is driven by separate account balances related to our variable annuity business, as these balances determine asset-based fee income and commissions. The changes in our variable annuities separate account balances are presented in Note 5 of the Notes to the Interim Condensed Consolidated Financial Statements.

Adjusted earnings were $332 million in the current and prior period.

•higher net investment spread due to:

◦higher returns on real estate limited partnerships and LLCs; and

◦higher investment yields on our fixed income portfolio, as proceeds from maturing investments and the growth in the investment portfolio were invested at higher yields than the portfolio average;

◦higher interest credited to policyholders due to higher account balances; and

•lower net costs associated with insurance-related activities due to an increase in income annuity underwriting margins.

•lower fee income due to lower asset-based fees resulting from lower average separate account balances, a portion of which is offset in other expenses; and

◦higher deferred compensation and operational expenses;

◦lower asset-based variable annuity expenses resulting from lower average separate account balances, a portion of which is offset in fee income.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings, resulted in an effective tax rate of 19% in both the current period and the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction.

Adjusted earnings were $646 million in the current period, an increase of $1 million.

•higher net investment spread due to:

◦higher returns on real estate limited partnerships and LLCs; and

◦higher investment yields on our fixed income portfolio, as proceeds from maturing investments and the growth in the investment portfolio were invested at higher yields than the portfolio average;

◦higher interest credited to policyholders due to higher account balances and actuarial modeling improvements; and

•lower net costs associated with insurance-related activities due to an increase in income annuity underwriting margins.

•lower fee income due to lower asset-based fees resulting from lower average separate account balances, a portion of which is offset in other expenses; and

◦higher operational expenses;

◦lower asset-based variable annuity expenses resulting from lower average separate account balances, a portion of which is offset in fee income; and

◦lower transition services agreement expenses.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings, resulted in an effective tax rate of 19% in both the current period and the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impact of the dividends received deduction.

Life

The components of adjusted earnings (loss) for our Life segment were as follows:

Adjusted loss was $26 million in the current period, a decrease of $68 million.

•higher costs associated with insurance-related activities due to higher claims, net of reinsurance;

•lower net investment spread due to lower returns on other limited partnerships; and

◦lower ceded cost of insurance expenses consistent with favorable equity market returns, which is offset in fee income; and

The key favorable impact was higher fee income due to lower ceded cost of insurance fees consistent with favorable equity market returns, which is offset in other expenses.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 21% in the current period compared to 19% in the prior period. Our effective tax rate may differ from the statutory tax rate primarily due to the impact of the dividends received deduction.

Adjusted loss was $17 million in the current period, a decrease of $23 million.

•higher net costs associated with insurance-related activities due to higher claims, net of reinsurance; and

•lower net investment spread due to lower returns on other limited partnerships.

•higher fee income due to lower ceded cost of insurance fees related to the conclusion of the aforementioned reinsurance arbitration in the prior period; and

◦the conclusion of the aforementioned reinsurance arbitration in the prior period;

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in a higher effective tax rate in the current period compared to the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impact of the dividends received deduction.

Run-off

The components of adjusted earnings (loss) for our Run-off segment were as follows:

Adjusted loss was $83 million in the current period, a higher loss of $53 million.

•lower net investment spread due to:

◦lower returns on other limited partnerships; and

◦lower average invested long-term assets;

•higher net costs associated with insurance-related activities due to higher claims, net of reinsurance; and

•lower fee income due to a decline in the net cost of insurance fees driven by the aging in-force business.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 21% in the current period compared to 19% in the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impact of the dividends received deduction.

Adjusted loss was $147 million in the current period, a lower loss of $224 million.

•lower costs associated with insurance-related activities due to:

◦a decrease in liability balances resulting from a reinsurance premium rate increase associated with the conclusion of the aforementioned reinsurance arbitration in the prior period; and

◦lower claims, net of reinsurance;

•higher net fee income due to:

◦lower ceded cost of insurance fees related to the conclusion of the aforementioned reinsurance arbitration in the prior period;

◦a decline in the net cost of insurance fees driven by the aging in-force business; and

◦the conclusion of the aforementioned reinsurance arbitration in the prior period;

The key unfavorable impact was a lower net investment spread due to:

◦lower returns on other limited partnerships; and

◦lower average invested long-term assets.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 21% in both the current period and the prior period.

Corporate & Other

The components of adjusted earnings (loss) for our Corporate & Other segment were as follows:

Adjusted loss was $25 million in the current period, a decrease of $27 million.

The key unfavorable impact was a lower net investment spread due to lower average invested long-term assets on our institutional spread margin business.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in a lower effective tax rate in the current period compared to the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction and tax credits. We believe the effective tax rate for the Corporate & Other segment is not generally meaningful, neither on a standalone basis nor for comparison to prior periods, since taxes for the Corporate & Other segment are derived from the difference between the overall consolidated effective tax rate and total taxes for the combined operating segments.

Adjusted loss was $49 million in the current period, a higher loss of $17 million.

The key unfavorable impact was a lower net investment spread due to lower average invested long-term assets on our institutional spread margin business.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in a higher effective tax rate in the current period compared to the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction, tax credits and current period non-recurring items. We believe the effective tax rate for the Corporate & Other segment is not generally meaningful, neither on a standalone basis nor for comparison to prior periods, since taxes for the Corporate & Other segment are derived from the difference between the overall consolidated effective tax rate and total taxes for the other operating segments.

Annuity Guaranteed Benefits and Shield Annuity Liabilities for the Three Months and Six Months Ended June 30, 2025 and 2024

The overall impact on income (loss) available to shareholders before provision for income tax from the performance of annuity guaranteed benefits and Shield Annuity liabilities, which includes (i) changes in the fair value of liabilities and related reinsurance, (ii) fees net of claims and (iii) the mark-to-market of hedges, was as follows:

Three Months Ended June 30, 2025

Annuity guaranteed benefits and Shield Annuity liabilities performance was favorable for the three months ended June 30, 2025, primarily driven by:

•favorable decreases in annuity guaranteed benefits liabilities due to increasing equity markets and interest rates;

Three Months Ended June 30, 2024

Annuity guaranteed benefits and Shield Annuity liabilities performance was unfavorable for the three months ended June 30, 2024, primarily driven by:

•favorable decreases in annuity guaranteed benefits liabilities due to increasing interest rates;

Six Months Ended June 30, 2025

Annuity guaranteed benefits and Shield Annuity liabilities performance was unfavorable for the six months ended June 30, 2025, primarily driven by:

•favorable decreases in annuity guaranteed benefits liabilities due to increasing equity markets, partially offset by decreasing interest rates;

•favorable changes in variable annuity hedges due to decreasing long-term interest rates and increasing equity markets; and

Six Months Ended June 30, 2024

Annuity guaranteed benefits and Shield Annuity liabilities performance was unfavorable for the six months ended June 30, 2024, primarily driven by:

•favorable decreases in annuity guaranteed benefits liabilities due to increasing interest rates and equity markets;