Brighthouse Financial, Inc.

Results of Operations

Annual Actuarial Review

We conducted our GAAP AAR in the third quarter. As part of the 2025 GAAP AAR, for our ULSG business, we updated assumptions regarding policyholder behavior, including mortality, premium persistency, lapses and withdrawals. In addition, we increased the long-term general account earned rate, driven by an increase in the mean reversion rate, from 4.00% to 4.50%. For our variable annuity business, we updated assumptions regarding annuitization, mortality, guaranteed principal option utilization, lapses and withdrawals, as well as separate account assumptions, including fund fees and allocations. For the payout annuity business, we updated assumptions regarding mortality. For term participating and non-participating whole life insurance, we updated assumptions regarding mortality and lapses.

As part of the 2024 GAAP AAR, for our ULSG business, we increased the long-term general account earned rate, driven by an increase in the mean reversion rate, from 3.75% to 4.00%. Also, with respect to our ULSG business, we updated assumptions regarding policyholder behavior, including mortality, premium persistency, lapses and withdrawals. For our variable annuity business, we updated assumptions regarding annuitization, mortality, lapses and withdrawals, as well as separate account assumptions, including fund fees and allocations. For term participating and non-participating whole life insurance, we updated assumptions regarding mortality and lapses.

We are currently in the process of conducting our 2025 statutory AAR, the results of which will be included in our insurance subsidiaries’ 2025 annual statutory financial statements. We anticipate that the 2025 statutory AAR will result in an increase to our statutory reserves; however, we expect to remain within our target combined risk-based capital (“RBC”) ratio range of 400% to 450% in normal market conditions at the end of 2025, without contributing capital to our insurance subsidiaries. See “Risk Factors — Risks Related to Our Business — Differences between actual experience and actuarial assumptions may adversely affect our financial results, capitalization and financial condition” included in our 2024 Annual Report.

The impact on income (loss) available to shareholders before provision for income tax was as follows:

Consolidated Results for the Three Months and Nine Months Ended September 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 $557 million ($453 million, net of income tax), an increase of $397 million ($303 million, net of income tax) from income available to shareholders before provision for income tax of $160 million ($150 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:

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

•net investment gains (losses) reflecting a gain on the sale of a subsidiary which owned certain mineral rights across the U.S., lower losses on sales of fixed maturity securities and a net decrease in impairments on fixed maturity securities;

•lower losses from variable annuity guaranteed benefit riders, see “— Annuity Guaranteed Benefits and Shield Annuity Liabilities for the Three Months and Nine Months Ended September 30, 2025 and 2024”; and

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

The increase in income before provision for income taxes was partially offset by 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 less in the current period combined with lower rate volatility, resulting in a loss of $10 million, and decreased more in the prior period combined with higher rate volatility, resulting in a gain of $113 million.

The provision for income tax, calculated as a percentage of income (loss) before provision for income tax, resulted in an effective tax rate of 18% in the current period compared to 5% 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.

Income available to shareholders before provision for income tax was $243 million ($219 million, net of income tax), an increase of $736 million ($579 million, net of income tax) from loss available to shareholders before provision for income tax of $493 million ($360 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:

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

•net investment gains (losses) reflecting lower net losses on sales of fixed maturity securities, a net decrease in impairments on fixed maturity securities, and a gain on the sale of a subsidiary which owned certain mineral rights across the U.S., partially offset by higher losses on mortgage loans due to an increase in the allowance for credit losses;

•lower losses from variable annuity guaranteed benefit riders, see “— Annuity Guaranteed Benefits and Shield Annuity Liabilities for the Three Months and Nine Months Ended September 30, 2025 and 2024”; and

•the impact of long-term interest rates on interest rate derivatives used to manage interest rate exposure in our ULSG business, as interest rates decreased more in the current period combined with lower rate volatility, resulting in a loss of $142 million, and decreased less in the prior period, resulting in a loss of $196 million.

The increase in income before provision for income taxes was partially offset by the U.S. dollar weakening more in the current period than the prior period, unfavorably impacting foreign currency forwards and swaps.

The provision for income tax, calculated as a percentage of income (loss) before provision for income tax, resulted in an effective tax rate of 7% in the current period compared to 32% 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 Nine Months Ended September 30, 2025 and 2024 — Adjusted Earnings (Loss)

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

Adjusted earnings were $970 million in the current period, an increase of $203 million.

◦a net decrease in liability balances resulting from year-over-year changes made in connection with the AAR in our Run-off, Life and Annuities segments and other refinements;

◦an increase in liability balances in our Run-off segment resulting from a premium rate increase on an existing reinsurance agreement;

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

◦a decrease in income annuity underwriting margins;

◦higher returns on other limited partnerships;

◦higher interest credited to policyholders due to prior period changes made in connection with the AAR in our Annuities segment; and

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

The key unfavorable impact was 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

◦a decline in the net cost of insurance (“COI”) fees driven by the aging in-force business in our Run-off segment.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 19% in the current period compared to 18% 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 $1.4 billion in the current period, an increase of $388 million.

◦a net decrease in liability balances resulting from year-over-year changes made in connection with the AAR in our Run-off, Life and Annuities segments and other refinements;

◦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; and

◦an increase in liability balances in our Run-off segment resulting from a premium rate increase on an existing reinsurance agreement;

•higher net fee income due to:

◦lower ceded COI 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 COI fees driven by the aging in-force business in our Run-off segment; and

•lower other expenses due to:

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

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

◦lower transition services agreement expenses;

◦higher operational expenses.

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

◦higher interest credited to policyholders due to higher account balances, prior period changes made in connection with the AAR and current period actuarial modeling improvements in our Annuities segment; and

◦lower returns on other limited partnerships;

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

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 19% in the current period compared to 18% 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.

Segment Results for the Three Months and Nine Months Ended September 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 $304 million in the current period, a decrease of $23 million.

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

◦a decrease in income annuity underwriting margins; and

◦a net increase in liability balances resulting from year-over-year changes made in connection with the AAR; and

•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.

◦higher average invested long-term assets; 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 changes made in connection with the AAR in the prior period; and

•lower other expenses due to 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 $950 million in the current period, a decrease of $22 million.

•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;

•higher other expenses due to:

◦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; and

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

◦a net increase in liability balances resulting from year-over-year changes made in connection with the AAR;

◦an increase in income annuity underwriting margins.

The key favorable impact was a higher net investment spread due to:

◦higher average invested assets resulting from positive net flows in the general account;

◦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; and

◦higher returns on real estate limited partnerships and LLCs;

◦higher interest credited to policyholders due to higher account balances, prior period changes made in connection with the AAR and current period actuarial modeling improvements.

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 earnings were $40 million in the current period, an increase of $65 million.

The key favorable impact was lower net costs associated with insurance-related activities due to:

◦a net decrease in liability balances resulting from year-over-year changes made in connection with the AAR;

◦higher claims, net of reinsurance.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 18% in the current period compared to 22% 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 earnings were $23 million in the current period, an increase of $42 million.

The key favorable impact was higher fee income due to lower ceded COI fees related to the conclusion of the aforementioned reinsurance arbitration in the prior period.

•lower net investment spread due to:

◦lower average invested long-term assets; and

◦lower returns on other limited partnerships;

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

◦higher claims, net of reinsurance;

◦a net decrease in liability balances resulting from year-over-year changes made in connection with the AAR; and

•higher other expenses due to:

◦higher operational expenses;

◦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 an effective tax rate of 12% in the current period compared to 27% in 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 earnings were $641 million in the current period, an increase of $178 million.

◦a net decrease in liability balances resulting from year-over-year changes made in connection with the AAR and other refinements;

◦an increase in liability balances resulting from a premium rate increase on an existing reinsurance agreement; and

◦higher claims, net of reinsurance; and

◦higher returns on other limited partnerships;

◦lower average invested long-term assets.

The key unfavorable impact was lower fee income due to a decline in the net COI 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 both the current period and the prior period.

Adjusted earnings were $494 million in the current period, an increase of $402 million.

◦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

◦a net decrease in liability balances resulting from year-over-year changes made in connection with the AAR and other refinements;

◦an increase in liability balances resulting from a premium rate increase on an existing reinsurance agreement;

•lower other expenses due to:

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

◦higher operational expenses; and

•higher net fee income due to:

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

◦a decline in the net COI fees driven by the aging in-force business.

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

◦lower average invested long-term assets; and

◦lower returns on other limited partnerships.

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 20% in the prior period.

Corporate & Other

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

Adjusted loss was $15 million in the current period, a decrease of $17 million.

The key unfavorable impact was a lower net investment spread due to lower yields and 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 $64 million in the current period, a higher loss of $34 million.

The key unfavorable impact was a lower net investment spread due to lower yields and 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 Nine Months Ended September 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 September 30, 2025

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

•unfavorable increases in annuity guaranteed benefits liabilities due to changes made in connection with the AAR and decreasing interest rates, partially offset by increasing equity markets;

•favorable changes in variable annuity and Shield hedges due to increasing equity markets; and

•unfavorable changes in Shield embedded derivatives due to increasing equity markets and changes made in connection with the AAR.

Three Months Ended September 30, 2024

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

•unfavorable increases in annuity guaranteed benefits liabilities due to decreasing interest rates, partially offset by increasing equity markets and changes made in connection with the AAR;

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

•unfavorable changes in Shield embedded derivatives due to increasing equity markets and decreasing interest rates, partially offset by changes made in connection with the AAR.

Nine Months Ended September 30, 2025

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

•unfavorable increases in annuity guaranteed benefits liabilities due to changes made in connection with the AAR and decreasing interest rates, partially offset by increasing equity markets;

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

•unfavorable changes in Shield embedded derivatives due to increasing equity markets and changes made in connection with the AAR.

Nine Months Ended September 30, 2024

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

•favorable decreases in annuity guaranteed benefits liabilities due to increasing equity markets and interest rates, as well as changes made in connection with the AAR;

•favorable changes in variable annuity and Shield hedges due to increasing equity markets; and

•unfavorable changes in Shield embedded derivatives due to increasing equity markets, partially offset by changes made in connection with the AAR.