Brighthouse Financial, Inc. (NASDAQ:BHF) concluded 2023 on a high note, as highlighted in its fourth-quarter earnings call by CEO Eric Steigerwalt, who outlined significant accomplishments and future strategies. Among its achievements, the company executed a notable stock buyback, repurchasing $250 million worth of common stock in 2023 and authorizing an additional $750 million for buybacks. Moreover, Brighthouse exceeded its annuity sales targets, achieving $10.6 billion for the year, while also introducing new annuity and life insurance products. Despite facing a 4% core inflation rate, the company effectively managed expenses, limiting the increase to only 2%.
The estimated combined risk-based capital (RBC) ratio remained strong at approximately 420%. Fourth-quarter adjusted earnings reached $177 million, with the annuity segment demonstrating robust performance. Bolstered by a resilient balance sheet and substantial holding company cash reserves, Brighthouse is poised to sustain capital returns to its shareholders. Looking ahead, the company intends to persist with its buyback strategy and anticipates increased surrender activity in 2024 due to maturing business and escalating interest rates.