Brighthouse Financial, Inc.

Results of Operations

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

Income available to shareholders before provision for income tax was $1.2 billion ($956 million, net of income tax), an increase of $1.1 billion ($896 million, net of income tax) from income available to shareholders before provision for income tax of $68 million ($60 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 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, 2026 and 2025”;

•gains on derivatives used to manage interest rate exposure in our universal life with secondary guarantees (“ULSG”) business from the favorable impact of interest rate movements in the current period compared to the unfavorable impact in the prior period;

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

•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 sales of fixed maturity securities and 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 20% in the current period compared to 9% 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 $187 million ($164 million, net of income tax), an increase of $501 million ($398 million, net of income tax) from loss available to shareholders before provision for income tax of $314 million ($234 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:

•lower 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, 2026 and 2025”;

•gains on derivatives used to manage interest rate exposure in our ULSG business from the favorable impact of interest rate movements in the current period compared to the unfavorable impact in the prior period;

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

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

•net investment gains (losses) reflecting lower net losses on mortgage loans due to a smaller increase in the allowance for credit losses and lower net losses on sales of fixed maturity securities.

The provision for income tax, calculated as a percentage of income (loss) before provision for income tax, resulted in an effective tax rate of 10% in the current period compared to 31% 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, 2026 and 2025 — Adjusted Earnings (Loss)

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

Adjusted earnings were $258 million in the current period, an increase of $60 million.

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

◦a decrease in income annuity underwriting margins; and

•higher net fee income due to:

◦lower ceded cost of insurance (“COI”) fees consistent with favorable equity market returns in our Life segment, a portion of which are offset in other expenses;

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

Key net unfavorable impacts were:

•lower net investment spread due to:

◦lower returns on other limited partnerships;

◦higher yields on long-term assets; and

◦lower interest credited to policyholders in our fixed annuity business resulting from lower account balances;

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

•higher other expenses due to:

◦lower ceded COI expenses consistent with favorable equity market returns in our Life segment, which are offset in fee income; and

◦higher deferred compensation expenses.

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.

Adjusted earnings were $497 million in the current period, an increase of $64 million.

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

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

◦a decrease in income annuity underwriting margins; and

•lower other expenses due to:

◦lower operational expenses;

◦lower ceded COI expenses consistent with favorable equity market returns in our Life segment, which are offset in fee income; and

◦higher deferred compensation expenses.

Key net unfavorable impacts were:

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

•lower net investment spread due to:

◦lower returns on other limited partnerships; and

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

◦higher yields on long-term assets; and

◦lower interest credited to policyholders in our fixed annuity business resulting from lower account balances, as well as prior period actuarial modeling improvements in our Annuities segment; and

•lower fee income due to:

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

◦lower ceded COI fees consistent with favorable equity market returns in our Life segment, a portion of which are 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 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, 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 $349 million in the current period, an increase of $17 million.

The key favorable impact was a 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; and

•lower interest credited to policyholders in our fixed annuity business resulting from lower account balances.

•higher net costs associated with insurance-related activities due to a decrease in income annuity underwriting margins;

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

•lower fee income due to lower reinsurance fees on our fixed annuity business resulting from lower account balances.

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 $673 million in the current period, an increase of $27 million.

The key net favorable impact was a 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; and

•lower interest credited to policyholders in our fixed annuity business resulting from lower account balances, as well as actuarial modeling improvements in the prior period.

•lower fee income due to lower reinsurance fees on our fixed annuity business resulting from lower account balances;

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

•higher net costs associated with insurance-related activities due to a decrease in income annuity underwriting margins.

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 $4 million in the current period, a lower loss of $22 million.

Key favorable impacts were:

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

•higher fee income due to lower ceded COI fees consistent with favorable equity market returns, a portion of which are offset in other expenses.

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

•higher other expenses due to lower ceded COI expenses consistent with favorable equity market returns, which are offset in fee income.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 43% in the current period compared to 21% 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 $10 million in the current period, a lower loss of $7 million.

Key favorable impacts were:

◦lower claims, net of reinsurance; and

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

•higher fee income due to lower ceded COI fees consistent with favorable equity market returns, a portion of which are offset in other expenses.

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 and lower yields.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 33% in the current period compared to 26% 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 $56 million in the current period, a lower loss of $27 million.

The key favorable impact was lower net costs associated with insurance-related activities due to lower claims, net of reinsurance.

The key unfavorable impact was a lower net investment spread due to 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 the current period compared to 21% in the prior period.

Adjusted loss was $104 million in the current period, a lower loss of $43 million.

◦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 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 $31 million in the current period, a higher loss of $6 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 combined operating segments.

Adjusted loss was $62 million in the current period, a higher loss of $13 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 and Six Months Ended June 30, 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 June 30, 2026

Annuity guaranteed benefits and Shield Annuity liabilities performance was favorable for the three months ended June 30, 2026, primarily driven by:

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

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

Six Months Ended June 30, 2026

Annuity guaranteed benefits and Shield Annuity liabilities performance was unfavorable for the six months ended June 30, 2026, primarily driven by:

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

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 and Shield hedges due to decreasing long-term interest rates and increasing equity markets; and