It has been about a month since the last earnings report for Brighthouse Financial (BHF). Shares have added about 5.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Brighthouse Financial due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Brighthouse Q2 Earnings and Revenues Top, Rise Y/Y

Brighthouse Financial reported second-quarter 2024 adjusted net income of $5.57 per share, which beat the Zacks Consensus Estimate by 27.8%. The bottom line improved 34.7% year over year.

The results reflected strong sales, including record sales of Shield Level Annuities as well as the effect of increased share buybacks.

Behind the Headlines

Total operating revenues of $2.2 billion increased 2.6% year over year, driven by higher net investment income and other income. The top line beat the consensus mark by 0.9%.

Premiums of $181 million decreased 14.2% year over year.

Adjusted net investment income was $1.3 billion in the quarter under review, up 8% year over year, primarily driven by alternative investment income, asset growth and higher interest rates. The adjusted investment income yield was 4.39%.

Total expenses were $1.4 million, up nearly threefold year over year, attributable to lower unfavorable change in market risk benefits. Corporate expenses, pretax, were $200 million, down 9.5% year over year.

Quarterly Segmental Update

Annuities recorded an adjusted operating income of $332 million, up 14.1% year over year. Annuity sales increased 2.6% to $2.4 billion, attributable to strong Shield Level Annuity sales and higher fixed indexed annuity sales from the company's recently launched SecureKey product.

Life’s adjusted operating income was $42 million, up nearly threefold year over year, on higher underwriting margin and lower expenses. Life insurance sales increased 12% to $28 million.

Adjusted operating loss at Run-off was $30 million, wider than the year-ago loss of $16 million, reflecting lower underwriting margin, partially offset by lower expenses.

Corporate & Other recorded adjusted operating income of $2 million against the year-ago loss of $19 million, reflecting higher net investment income and a higher tax benefit.

Financial Update

Cash and cash equivalents were $4.4 billion, up 18.8% year over year.

Shareholders’ equity of $4.2 billion at the end of second-quarter 2024 decreased 15.4% year over year.

Book value per share, excluding accumulated other comprehensive income, was $128.36 as of Jun 30, 2024, down 6.8% year over year.

Statutory combined total adjusted capital was $5.4 billion as of Jun 30, 2024, down 28.9% year over year.

As of Jun 30, 2024, the estimated  combined risk-based capital ratio was 380.