Brighthouse Financial, Inc.

Results of Operations

Consolidated Results for the Three Months Ended March 31, 2026 and 2025

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:

The loss available to shareholders before provision for income tax was $1.0 billion ($792 million, net of income tax), a higher loss of $632 million ($498 million, net of income tax) from loss available to shareholders before provision for income tax of $382 million ($294 million, net of income tax) in the prior period.

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

•higher losses from variable annuity guaranteed benefit riders, see “— Annuity Guaranteed Benefits and Shield Annuity Liabilities for the Three Months Ended March 31, 2026 and 2025”; and

•losses from the impact of interest rates on derivatives used to manage interest rate exposure in our universal life with secondary guarantees (“ULSG”) business, as long-term rates increased in the current period and decreased in the prior period.

The increase in loss before provision for income tax was partially offset by the following favorable items:

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

•net investment gains (losses) reflecting lower net losses on mortgage loans due to a smaller increase in the allowance for credit losses.

The provision for income tax, calculated as a percentage of income (loss) before provision for income tax, resulted in an effective tax rate of 23% in the current period compared to 25% 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 Ended March 31, 2026 and 2025 — Adjusted Earnings (Loss)

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

Adjusted earnings were $239 million in the current period, an increase of $4 million.

•higher net investment spread due to:

◦lower interest credited to policyholders due to lower account balances and prior period actuarial modeling improvements in our Annuities segment;

◦lower average invested long-term assets and yields on our institutional spread margin business; and

•lower other expenses due to:

◦lower operational expenses; and

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

Key net unfavorable impacts were:

•lower fee income due to:

◦lower reinsurance fees on our fixed annuity business resulting from lower account balances; and

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

•higher amortization of DAC and VOBA resulting primarily from changes in policyholder behavior in our Annuities segment; and

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

◦a net increase in liability balances resulting from actuarial modeling improvements in our Run-off and Life segments;

◦lower claims, net of reinsurance, 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 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 Ended March 31, 2026 and 2025 — 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 $324 million in the current period, an increase of $10 million.

•higher net investment spread due to:

◦lower interest credited to policyholders due to actuarial modeling improvements in the prior period and lower account balances; 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; and

•lower other expenses due to:

◦lower operational expenses; and

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

Key unfavorable impacts were:

•lower fee income due to:

◦lower reinsurance fees on our fixed annuity business resulting from lower account balances; and

◦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 loss was $6 million in the current period, a decrease of $15 million.

Key net unfavorable impacts were:

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

◦higher non-traditional life claims, net of reinsurance;

◦a decrease in liability balances resulting from actuarial modeling improvements; and

•lower net investment spread due to lower average invested long-term assets.

The key favorable impact was lower other expenses due to lower operational expenses.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 25% in the current period compared to 10% 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 loss was $48 million in the current period, a lower loss of $16 million.

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

◦lower claims, net of reinsurance;

◦an increase in liability balances resulting from actuarial modeling improvements; and

•lower other expenses due to lower operational 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 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.

Corporate & Other

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

Adjusted loss was $31 million in the current period, a higher loss of $7 million.

The key unfavorable impact was a lower net investment spread due to lower average invested long-term assets and yields 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, 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 Ended March 31, 2026 and 2025

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 March 31, 2026

Annuity guaranteed benefits and Shield Annuity liabilities performance was unfavorable for the three months ended March 31, 2026, primarily driven by:

•unfavorable increases in annuity guaranteed benefits liabilities due to decreasing equity markets;

•unfavorable changes in variable annuity and Shield hedges due to decreasing equity markets; and

•favorable changes in Shield embedded derivatives due to decreasing equity markets.

Three Months Ended March 31, 2025

Annuity guaranteed benefits and Shield Annuity liabilities performance was unfavorable for the three months ended March 31, 2025, primarily driven by:

•unfavorable increases in annuity guaranteed benefits liabilities due to decreasing interest rates and equity markets;

•unfavorable changes in variable annuity and Shield hedges due to decreasing equity markets, partially offset by decreasing long-term interest rates; and

•favorable changes in Shield embedded derivatives due to decreasing equity markets.