Brighthouse Financial, Inc.

Segment Results for the Years Ended December 31, 2025 and 2024 — Adjusted Earnings (Loss)

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 Consolidated Financial Statements.

Adjusted earnings were $1.3 billion in the current period, an increase of $3 million.

Key favorable impacts were:

•higher net investment spread due to:

◦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 returns on real estate limited partnerships and LLCs; and

◦higher average invested long-term assets;

◦higher interest credited to policyholders due to higher account balances and prior period changes made in connection with the AAR, net of year-over-year actuarial modeling improvements; 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; and

◦lower transition services agreement expenses;

◦higher operational expenses.

•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 amortization of DAC and VOBA resulting primarily from changes in policyholder behavior.

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 $41 million in the current period, an increase of $8 million.

Key favorable impacts were:

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

•lower amortization of DAC and VOBA driven by the aging in-force business.

•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 other refinements; and

•higher other expenses due to:

◦higher operational expenses;

◦lower reinsurance expenses associated with 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 9% in the current period compared to 13% 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 $436 million in the current period, an increase of $371 million.

Key net favorable impacts were:

•lower net 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

◦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;

•lower other expenses due to:

◦lower reinsurance expenses associated with 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 20% 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.

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

Adjusted loss was $114 million in the current period, a higher loss of $84 million.

Key unfavorable impacts were:

•lower net investment spread due to lower yields and lower average invested long-term assets on our institutional spread margin business; and

•higher other expenses due to higher operational expenses.

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 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 other operating segments.