Brighthouse Financial Announces Second Quarter 2018 Results

–Adjusted earnings* of $153 million, driven by higher corporate expenses and unfavorable results in the Run-off segment

–Annuity sales grew 42 percent over the second quarter of 2017

–Variable annuity assets above CTE95 were flat at $2.7 billion

–Reaffirmed full-year 2018 guidance, less notable items: adjusted earnings per share* of $8.50 to $9.00 and an adjusted return on equity* of approximately 8 percent

–Announced $200 million stock repurchase program

Brighthouse Financial, Inc. (“Brighthouse Financial”) (Nasdaq: BHF)
announced today its financial results for the second quarter ended
June 30, 2018.

Second Quarter 2018 Results

The company reported a net loss available to shareholders of $239
million in the second quarter of 2018, or $2.01 on a per share basis,
compared to net income available to shareholders of $246 million in the
second quarter of 2017. The company ended the second quarter of 2018
with stockholders’ equity (“book value”) of $13.4 billion, or $112.17 on
a per share basis, and book value, excluding accumulated other
comprehensive income (“AOCI”), of $12.6 billion, or $105.37 on a per
share basis.

For the second quarter of 2018, the company reported adjusted earnings
of $153 million, or $1.27 on a per share basis.

Adjusted earnings for the quarter included $44 million of a net
unfavorable notable item, or $0.37 on a per share basis, for
establishment costs primarily related to planned technology and branding
investments.

The company previously provided guidance in May 2018 for select
financial metrics for full-year 2018 including an expectation of
adjusted earnings per share, less notable items, of $8.50 to $9.00 and
an adjusted return on equity (ROE), less notable items, of approximately
8 percent. Taking into account its performance over the first half of
2018 and its expected performance for the remainder of the year, the
company reaffirmed its guidance for full-year 2018.

Corporate expenses in the second quarter of 2018 were $288 million
pre-tax, up from $230 million pre-tax in the first quarter of 2018.
Total corporate expenses in the first twelve months post-separation were
$1,046 million pre-tax, in line with company expectations of $1.0
billion to $1.1 billion.

Annuity sales increased 42 percent quarter-over-quarter, driven by an
increase in sales of Shield and fixed indexed annuities. On a sequential
basis, annuity sales increased 12 percent, primarily from an increase in
sales of fixed indexed annuities.

“We are pleased with our quarter-over-quarter sales growth in annuities
and with our strong operational performance during the second quarter.
While we recorded lower sequential adjusted earnings this period, we
expect to reach our guidance targets for 2018,” commented Eric
Steigerwalt, president and chief executive officer, Brighthouse
Financial. “As we enter our second year as an independent,
publicly-traded company, we are on track with our goals, we are
confident in our strategy, and we remain focused on delivering value for
advisors, the clients they serve, and our shareholders.”

Key Metrics (Unaudited, dollars in millions except share and per
share amounts)

                                                                                                                                       As of or For the Three Months Ended
                                                                                                                        ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                  June 30, 2018                                                           June 30, 2017
                                                                                                                        ----------------------------------------------------------------                                          ------------------------------------------------------------------------
                                                                                                                            Total        Per share                                            Total            Per share
      Net income (loss) available to shareholders (1)                                                   $(239)                                               $(2.01)                                             $246                                                      N/A
    -------------------- ----------------------------------------------------                                           -----------                                           ---------                                           --------                                           --------------------
      Adjusted earnings (2), (3)                                                                         $153                                                 $1.27                                              $324                                                      N/A
    -------------------- ----------------------------------------------------                                           -----------                                           ---------                                           --------                                           --------------------
                         Weighted average common shares outstanding - diluted                                            120,200,149                                              N/A                                                N/A                                                      N/A
                                                                                                                                                                                                                                                                                      
      Book value                                                                                        $13,435                                              $112.17                                            $16,415                                                    N/A
    -------------------- ----------------------------------------------------                                           -----------                                           ---------                                           --------                                           --------------------
      Book value, excluding AOCI                                                                        $12,620                                              $105.37                                            $14,521                                                    N/A
    -------------------- ----------------------------------------------------                                           -----------                                           ---------                                           --------                                           --------------------
                         Ending common shares outstanding                                                                119,773,106                                              N/A                                                N/A                                                      N/A
                                                                                                                                                                                                                                                                                      
(1)                      Diluted net income (loss) available to shareholders per common
                         share was calculated using 119,773,106 weighted average shares
                         outstanding for the period ended June 30, 2018. The diluted shares
                         are not currently utilized in the per share calculation of net
                         income (loss) available to shareholders, as inclusion would have
                         an anti-dilutive effect to a loss position.
(2)                      Per share amount is on a diluted basis.
(3)                      The company uses the term "adjusted loss" throughout this news
                         release to refer to negative adjusted earnings values.
                          

* Information regarding the non-GAAP and other financial measures
included in this news release and a reconciliation of such non-GAAP
financial measures to the most directly comparable GAAP measures is
provided in the Non-GAAP and Other Financial Disclosures discussion
below as well as in the tables that accompany this news release and/or
the Second Quarter 2018 Brighthouse Financial, Inc. Financial Supplement
(which is available on the Brighthouse Financial Investor Relations web
page at http://investor.brighthousefinancial.com).
Additional information regarding notable items can be found on page 16
of this news release.

Results by Business Segment and Corporate & Other (Unaudited, in
millions)

                                                       For the Three Months Ended
    -------------------- --------------------                                           ----------------------------------------------------------------------------------------------------------------
      Adjusted earnings                                              June 30,      March 31,    June 30,
                                                                                          2018                                              2018 (1)                                             2017
    -------------------- --------------------
      Annuities                                                        $221                                                $226                                               $226
    -------------------- --------------------                                           --------                                           ---------                                           --------
      Life                                                              $37                                                 $66                                                $12
    -------------------- --------------------                                           --------                                           ---------                                           --------
      Run-off                                                          $(6)                                                 $50                                                $52
    -------------------- --------------------                                           --------                                           ---------                                           --------
      Corporate & Other                                                $(99)                                               $(59)                                               $34
    -------------------- --------------------                                           --------                                           ---------                                           --------
     
(1)                      In the first quarter of 2018, the company completed a realignment
                         of invested assets based on statutory target asset requirements
                         across all segments. This invested asset realignment did not
                         change earnings in total, but did impact individual segment
                         results.
                          

Sales (Unaudited, in millions)

                                                                         For the Three Months Ended
                                                                                 ----------------------------------------------------------------------------------------------------------------------------
                                                                                 June 30,      March 31,          June 30,
                                                                                   2018                                                2018                                                     2017
      Annuities (1)                                            $1,412                                              $1,256                                                    $995
    -------------------- -------------                                           --------                                           ---------                                           --------------------
      Life                                                       $2                                                  $2                                                       $11
    -------------------- -------------                                           --------                                           ---------                                           --------------------
                                                                                                                                                                                         
(1)                      Annuities sales include sales of a fixed indexed annuity product
                         sold by Massachusetts Mutual Life Insurance Company, representing
                         90% of gross sales of that product. Sales of this product were
                         $272 million and $173 million for the second quarter of 2018 and
                         the first quarter of 2018, respectively. There were no sales of
                         this product in the second quarter of 2017.
                          

Annuities

Adjusted earnings in the Annuities segment were $221 million in the
current quarter, compared to adjusted earnings of $226 million in each
of the second quarter of 2017 and the first quarter of 2018.

There were no notable items in the second quarter of 2018. The second
quarter of 2017 included $25 million of favorable notable items. The
first quarter of 2018 did not include any notable items. On a
quarter-over-quarter basis adjusted earnings, less notable items,
reflect higher net investment income and lower taxes, partially offset
by higher expenses. On a sequential basis, adjusted earnings reflect
higher expenses, partially offset by higher net investment income and
lower deferred acquisition costs (DAC) amortization due to market
performance in the quarter.

As mentioned above, annuity sales increased 42 percent
quarter-over-quarter, primarily driven by an increase in sales of Shield
and fixed indexed annuities. On a sequential basis, annuity sales
increased by 12 percent, primarily from an increase in sales of fixed
indexed annuities.

Life

Adjusted earnings in the Life segment were $37 million in the current
quarter, compared to adjusted earnings of $12 million in the second
quarter of 2017 and adjusted earnings of $66 million in the first
quarter of 2018.

There were no notable items in the current quarter. The second quarter
of 2017 included $12 million in favorable notable items. The first
quarter of 2018 included $16 million of favorable notable items. On a
quarter-over-quarter basis, adjusted earnings reflect higher net
investment income due to the portfolio realignment completed in the
first quarter of 2018, partially offset by higher DAC amortization and
higher expenses. On a sequential basis, adjusted earnings reflect higher
expenses.

Life insurance sales remained low, consistent with the company’s
strategy of migrating to simpler life insurance solutions. The company
expects life insurance sales to remain at similar levels over the
medium-term, as it revamps its life insurance business. The company is
targeting a launch of a life insurance product in late 2018 or early
2019, subject to regulatory approval.

Run-off

The Run-off segment had an adjusted loss of $6 million in the current
quarter, compared to adjusted earnings of $52 million in the second
quarter of 2017 and adjusted earnings of $50 million in the first
quarter of 2018.

The current quarter did not include any notable items. The second
quarter of 2017 included $5 million in favorable notable items. The
first quarter of 2018 included $16 million in favorable notable items.
On a quarter-over-quarter basis, the adjusted loss reflects higher
claims and reserve development, and lower net investment income
primarily related to a decrease in alternative investment income and the
portfolio realignment completed in the first quarter of 2018. On a
sequential basis, the adjusted loss reflects lower net investment income
primarily related to a decrease in alternative investment income, higher
claims, and higher expenses.

Corporate & Other

Corporate & Other had an adjusted loss of $99 million in the current
quarter, compared to adjusted earnings of $34 million in the second
quarter of 2017 and an adjusted loss of $59 million in the first quarter
of 2018.

The current quarter includes an unfavorable notable item of $44 million
related to establishment costs, as described above. The second quarter
of 2017 did not include any notable items. The first quarter of 2018
included an unfavorable notable item of $37 million. On a
quarter-over-quarter basis, the adjusted loss reflects lower net
investment income and higher expenses. On a sequential basis, the
adjusted loss reflects higher expenses.

Net Investment Income

Net investment income for the second quarter of 2018 was $806 million.
On a quarter-over-quarter basis, adjusted net investment income*
increased $20 million to $812 million, primarily driven by growth in
assets and ongoing repositioning of the investment portfolio, partially
offset by lower alternative investment income. On a sequential basis,
adjusted net investment income decreased $13 million, primarily driven
by lower alternative investment income, partially offset by growth in
assets and ongoing repositioning of the investment portfolio.

The net investment income yield was 4.37 percent during the quarter.

Statutory Capital and Liquidity (Unaudited, in billions)

                                                                                                                          As of
                                                                                                                     ---------------------------------------------------------------------------------------------------------------------------------
                                                                                                                       June 30,        March 31,           June 30,
                                                                                                                         2018                                                  2018                                                      2017
      Variable annuity assets above CTE95 (1)                                                         $2.7                                                  $2.7                                                       N/A
    -------------------- -------------------------------------------------                                           -----------                                           -----------                                           --------------------
      Statutory combined total adjusted capital (2) (3)                                               $6.0                                                  $6.5                                                      $6.4
    -------------------- -------------------------------------------------                                           -----------                                           -----------                                           --------------------
                                                                                                                                                                                                                                  
(1)                      Conditional Tail Expectation ("CTE") 95 is defined as the amount
                         of assets required to satisfy contract holder obligations across
                         market environments in the average of the worst 5 percent of 1,000
                         capital market scenarios over the life of the contracts ("CTE95").
(2)                      Represents combined results for Brighthouse Life Insurance
                         Company, Brighthouse Life Insurance Company of NY and New England
                         Life Insurance Company.
(3)                      Reflects preliminary statutory results as of June 30, 2018.
                          

Capitalization

Holding company liquid assets were $569 million at June 30, 2018.

Statutory total adjusted capital on a preliminary basis decreased
approximately $0.5 billion to $6.0 billion at June 30, 2018, driven by
an increase in variable annuity reserves and net derivative
mark-to-market losses.

Assets above CTE95 were flat at $2.7 billion at June 30, 2018. Assets
above CTE98 were in excess of $0.5 billion at June 30, 2018.

Stock Repurchase Program

Brighthouse Financial today announced that its Board of Directors has
authorized the repurchase of up to $200 million of Brighthouse Financial
common stock. The stock repurchase program is the first for Brighthouse
Financial since becoming an independent, publicly-traded company in
August 2017.

Repurchases under the program may be made through open market purchases,
pursuant to 10b5-1 plans or pursuant to accelerated stock repurchase
plans from time to time at management’s discretion in accordance with
applicable federal securities laws.

Earnings Conference Call

Brighthouse Financial plans to hold a conference call and audio webcast
to discuss its financial results for the second quarter of 2018 at 8:00
a.m. Eastern Time on Tuesday, August 7, 2018.

To listen to the audio webcast via the internet, please visit the
Brighthouse Financial Investor Relations webpage at http://investor.brighthousefinancial.com.
To join the conference call via telephone, please dial (844) 358-9117
from within the U.S. or +1-209-905-5952 from outside the U.S.

A replay of the conference call will be made available until Friday,
August 17, 2018 on the Brighthouse Financial Investor Relations webpage
at http://investor.brighthousefinancial.com.

Non-GAAP and Other Financial Disclosures

Our definitions of the non-GAAP and other financial measures may differ
from those used by other companies.

Non-GAAP Financial Disclosures

We present certain measures of our performance that are not calculated
in accordance with GAAP. We believe that these non-GAAP financial
measures highlight our results of operations and the underlying
profitability drivers of our business, as well as enhance the
understanding of our performance by the investor community.

The following non-GAAP financial measures, previously referred to as
operating measures, should not be viewed as substitutes for the most
directly comparable financial measures calculated in accordance with
GAAP:

                       Non-GAAP financial measures:                                   Most directly comparable GAAP financial
                                                                                                                                               measures:
                                          ------------------------------------------------------                                               -----------------------------------------------
                                          adjusted earnings                                                                                    net income (loss) available to shareholders (1)
                                          adjusted earnings, less notable items                                                                net income (loss) available to shareholders (1)
                                          adjusted revenues                                                                                    revenues
                                          adjusted expenses                                                                                    expenses
                                          adjusted earnings per common share                                                                   earnings per common share, diluted (1)
                                          adjusted earnings per common share, less notable items                                               earnings per common share, diluted (1)
                                          adjusted return on equity                                                                            return on equity
                                          adjusted return on equity, less notable items                                                        return on equity
                                          adjusted net investment income                                                                       net investment income
     
(1)                                       Brighthouse uses net income (loss) available to shareholders to
                                          refer to net income (loss) available to Brighthouse Financial,
                                          Inc.'s common shareholders, and net income (loss) available to
                                          shareholders per common share to refer to earnings per common
                                          share, diluted.
                                           

Reconciliations to the most directly comparable historical GAAP measures
are included for those measures which are presented herein.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures are not accessible on a
forward-looking basis because we believe it is not possible without
unreasonable efforts to provide other than a range of net investment
gains and losses and net derivative gains and losses, which can
fluctuate significantly within or outside the range and from period to
period and may have a material impact on net income (loss) available to
shareholders.

Adjusted Earnings, Adjusted Revenues and Adjusted Expenses

Adjusted earnings, which may be positive or negative, is used by
management to evaluate performance, allocate resources and facilitate
comparisons to industry results. This financial measure focuses on our
primary businesses principally by excluding (i) the impact of market
volatility, which could distort trends, and (ii) businesses that have
been or will be sold or exited by us, referred to as divested businesses.

Adjusted earnings reflects adjusted revenues less adjusted expenses,
both net of income tax, and excludes net income (loss) attributable to
noncontrolling interests. Provided below are the adjustments to GAAP
revenues and GAAP expenses used to calculate adjusted revenues and
adjusted expenses, respectively.

The following are significant items excluded from total revenues, net of
income tax, in calculating the adjusted revenues component of adjusted
earnings:


Net investment gains (losses);


Net derivative gains (losses), except earned income on derivatives
that are hedges of investments or that are used to replicate certain
investments, but do not qualify for hedge accounting treatment
(“Investment Hedge Adjustments”); and


Amortization of unearned revenue related to net investment gains
(loss) and net derivative gains (losses) and certain variable annuity
GMIB fees (“GMIB Fees”)(1).

The following are significant items excluded from total expenses, net of
income tax, in calculating the adjusted expenses component of adjusted
earnings:


Amounts associated with benefits and hedging costs related to GMIBs
(“GMIB Costs”)(1);


Amounts associated with periodic crediting rate adjustments based on
the total return of a contractually referenced pool of assets and
market value adjustments associated with surrenders or terminations of
contracts (“Market Value Adjustments”); and


Amortization of DAC and VOBA related to (i) net investment gains
(losses), (ii) net derivative gains (losses), (iii) GMIB Fees and GMIB
Costs and (iv) Market Value Adjustments(1).

The tax impact of the adjustments mentioned is calculated net of the
U.S. statutory tax rate, which could differ from our effective tax rate.

Consistent with GAAP guidance for segment reporting, adjusted earnings
is also our GAAP measure of segment performance.

Adjusted Earnings per Common Share and Adjusted Return on Equity

Adjusted earnings per common share and adjusted return on equity are
measures used by management to evaluate the execution of our business
strategy and align such strategy with our shareholders’ interests.

Adjusted earnings per common share is defined as adjusted earnings for
the period divided by the weighted average number of fully diluted
shares of common stock outstanding for the period.

Adjusted return on equity is defined as total annual adjusted earnings
on a four quarter trailing basis, divided by the simple average of the
most recent five quarters of total Brighthouse Financial, Inc.’s
stockholders’ equity, excluding AOCI.

(1) Collectively, amounts related to GMIB, excluding amounts
recorded in NDGL, may be referred to as “GMIB adjustments.”

Adjusted Net Investment Income

We present adjusted net investment income to measure our performance for
management purposes, and we believe it enhances the understanding of our
investment portfolio results. Adjusted net investment income represents
net investment income including investment hedge adjustments and
excluding the incremental net investment income from CSEs.

Other Financial Disclosures

Corporate Expenses

Corporate expenses includes functional department expenses, public
company expenses, certain investment expenses, retirement funding and
incentive compensation; and excludes establishment costs.

Notable items

Certain of the non-GAAP measures described above may be presented
further adjusted to exclude notable items. Notable items reflect the
impact on our results of certain unanticipated items and events, as well
as certain items and events that were anticipated, such as establishment
costs. The presentation of notable items and non-GAAP measures, less
notable items is intended to help investors better understand our
results and to evaluate and forecast those results.

Book Value per Common Share and Book Value per Common Share,
excluding AOCI

Brighthouse uses the term “book value” to refer to “stockholders’
equity.” Book value per common share is defined as ending Brighthouse
Financial, Inc.’s stockholders’ equity, including AOCI, divided by
ending common shares outstanding. Book value per common share, excluding
AOCI, is defined as ending Brighthouse Financial, Inc.’s stockholders’
equity, excluding AOCI, divided by ending common shares outstanding.

CTE95

CTE95 is defined as the amount of assets required to satisfy contract
holder obligations across market environments in the average of the
worst 5 percent of 1,000 capital market scenarios over the life of the
contracts.

CTE98

CTE98 is defined as the amount of assets required to satisfy contract
holder obligations across market environments in the average of the
worst 2 percent of 1,000 capital market scenarios over the life of the
contracts.

Holding Company Liquid Assets

Holding company liquid assets include liquid assets in Brighthouse
Financial, Inc., Brighthouse Holdings, LLC, and Brighthouse Services,
LLC. Liquid assets include cash and cash equivalents, short-term
investments and publicly traded securities excluding assets that are
pledged or otherwise committed. Assets pledged or otherwise committed
include amounts received in connection with derivatives and collateral
financing arrangements.

Sales

Statistical sales information for Life sales is calculated using the
LIMRA definition of sales for core direct sales, excluding
company-sponsored internal exchanges, corporate-owned life insurance,
bank-owned life insurance, and private placement variable universal life
insurance. Annuity sales consist of 100 percent of direct statutory
premiums, except for fixed indexed annuity sales distributed through
MassMutual that consist of 90 percent of gross sales. Annuity sales
exclude company sponsored internal exchanges. These sales statistics do
not correspond to revenues under GAAP, but are used as relevant measures
of business activity.

Net Investment Income Yield

Similar to adjusted net investment income, we present net investment
income yields as a performance measure we believe enhances the
understanding of our investment portfolio results. Net investment income
yields are calculated on adjusted net investment income as a percent of
average quarterly asset carrying values. Asset carrying values exclude
unrealized gains (losses), collateral received in connection with our
securities lending program, freestanding derivative assets, collateral
received from derivative counterparties and the effects of consolidating
under GAAP certain VIEs that are treated as CSEs.

Adjusted Statutory Earnings

Adjusted statutory earnings is a measure of our ability to pay future
distributions and are reflective of whether our hedging program
functions as intended. Adjusted statutory earnings is calculated as
statutory pre-tax income less the variable annuities reserve methodology
(Actuarial Guideline 43) and including both the reserve and capital
methodology based CTE95 calculation and unrealized gains (losses)
associated with the variable annuities risk management strategy.

Basis of Presentation

The information presented in this news release is derived from the
consolidated financial statements of Brighthouse Financial, Inc. for
periods subsequent to the separation from MetLife, Inc. that occurred on
August 4, 2017, and is derived from the combined financial information
of the MetLife U.S. Retail Separation Business for periods prior to the
separation. The combined financial information was prepared in
connection with the separation of a substantial portion of MetLife,
Inc.’s former Retail segment as well as certain portions of its former
Corporate Benefit Funding segment, and presents the combined results of
operations and financial condition of certain former direct and indirect
subsidiaries and certain of its current and former affiliates.

Forward-Looking Statements

This news release and other oral or written statements that we make from
time to time may contain information that includes or is based upon
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve
substantial risks and uncertainties. We have tried, wherever possible,
to identify such statements using words such as “anticipate,”
“estimate,” “expect,” “project,” “may,” “will,” “could,” “intend,”
“goal,” “target,” “forecast,” “objective,” “continue,” “aim,” “plan,”
“believe” and other words and terms of similar meaning, or that are tied
to future periods, in connection with a discussion of future operating
or financial performance. In particular, these include, without
limitation, statements relating to future actions, prospective services
or products, future performance or results of current and anticipated
services or products, sales efforts, expenses, the outcome of
contingencies such as legal proceedings, trends in operating and
financial results, as well as statements regarding the expected benefits
of the separation from MetLife (the “Separation”) and the
recapitalization actions.

Any or all forward-looking statements may turn out to be wrong. They can
be affected by inaccurate assumptions or by known or unknown risks and
uncertainties. Many such factors will be important in determining the
actual future results of Brighthouse Financial. These statements are
based on current expectations and the current economic environment and
involve a number of risks and uncertainties that are difficult to
predict. These statements are not guarantees of future performance.
Actual results could differ materially from those expressed or implied
in the forward-looking statements due to a variety of known and unknown
risks, uncertainties and other factors. Although it is not possible to
identify all of these risks and factors, they include, among others:
differences between actual experience and actuarial assumptions and the
effectiveness of our actuarial models; higher risk management costs and
exposure to increased counterparty risk due to guarantees within certain
of our products; the effectiveness of our exposure management strategy
and the impact of such strategy on net income volatility and negative
effects on our statutory capital; the additional reserves we will be
required to hold against our variable annuities as a result of actuarial
guidelines; a sustained period of low equity market prices and interest
rates that are lower than those we assumed when we issued our variable
annuity products; our degree of leverage due to indebtedness incurred in
connection with the Separation; the effect adverse capital and credit
market conditions may have on our ability to meet liquidity needs and
our access to capital; the impact of changes in regulation and in
supervisory and enforcement policies on our insurance business or other
operations; the effectiveness of our risk management policies and
procedures; the availability of reinsurance and the ability of our
counterparties to our reinsurance or indemnification arrangements to
perform their obligations thereunder; heightened competition, including
with respect to service, product features, scale, price, actual or
perceived financial strength, claims-paying ratings, credit ratings,
e-business capabilities and name recognition; changes in accounting
standards, practices and/or policies applicable to us; the ability of
our insurance subsidiaries to pay dividends to us, and our ability to
pay dividends to our shareholders; our ability to market and distribute
our products through distribution channels; the impact of the Separation
on our business and profitability due to MetLife’s strong brand and
reputation, the increased costs related to replacing arrangements with
MetLife with those of third parties and incremental costs as a public
company; any failure of third parties to provide services we need, any
failure of the practices and procedures of these third parties and any
inability to obtain information or assistance we need from third
parties, including MetLife; whether the operational, strategic and other
benefits of the Separation can be achieved, and our ability to implement
our business strategy; whether all or any portion of the Separation tax
consequences are not as expected, leading to material additional taxes
or material adverse consequences to tax attributes that impact us; the
uncertainty of the outcome of any disputes with MetLife over tax-related
or other matters and agreements including the potential of outcomes
adverse to us that could cause us to owe MetLife material tax
reimbursements or payments or disagreements regarding MetLife’s or our
obligations under our other agreements; the impact on our business
structure, profitability, cost of capital and flexibility due to
restrictions we have agreed to that preserve the tax-free treatment of
certain parts of the Separation; the potential material negative tax
impact of the Tax Cuts and Jobs Act and other potential future tax
legislation that could decrease the value of our tax attributes, lead to
increased risk-based capital requirements and cause other cash expenses,
such as reserves, to increase materially and make some of our products
less attractive to consumers; whether the distribution will qualify for
non-recognition treatment for U.S. federal income tax purposes and
potential indemnification to MetLife if the distribution does not so
qualify; our ability to attract and retain key personnel; and other
factors described from time to time in documents that we file with the
U.S. Securities and Exchange Commission (the “SEC”).

For the reasons described above, we caution you against relying on any
forward-looking statements, which should also be read in conjunction
with the other cautionary statements included and the risks,
uncertainties and other factors identified in our Annual Report on Form
10-K for the year ended December 31, 2017 and our Quarterly Report on
Form 10-Q for the quarter ended March 31, 2018, particularly in the
sections entitled “Risk Factors” and “Quantitative and Qualitative
Disclosures About Market Risk,” as well as in other documents we file
from time to time with the SEC. Further, any forward-looking statement
speaks only as of the date on which it is made, and we undertake no
obligation to update or revise any forward-looking statement to reflect
events or circumstances after the date on which the statement is made or
to reflect the occurrence of unanticipated events, except as otherwise
may be required by law.

About Brighthouse Financial, Inc.

Brighthouse Financial, Inc. (Nasdaq: BHF) is a major provider of
annuities and life insurance in the U.S. Established by MetLife, we are
on a mission to help people achieve financial security. We specialize in
products that play an essential role in helping people protect what
they’ve earned and ensure it lasts. Learn more at www.brighthousefinancial.com.

Condensed Statements of Operations (Unaudited, in millions)

                                                                                                                                For the Three Months Ended
                                          -------------------- ---------------------------------------------------------------------------------------                                           ----------------------------------------------------------------------------------------------------------------------------
                                            Revenues                                                                                                                          June 30,      March 31,          June 30,
                                                                                                                                                                                                   2018                                                2018                                                     2017
                                            Premiums                                                                                                                            $223                                                $229                                                     $218
                                          -------------------- ---------------------------------------------------------------------------------------                                           --------                                           ---------                                           --------------------
                                            Universal life and investment-type product policy fees                                                                               962                                                1,002                                                     957
                                          -------------------- ---------------------------------------------------------------------------------------                                           --------                                           ---------                                           --------------------
                                            Net investment income                                                                                                                806                                                 817                                                      766
                                          -------------------- ---------------------------------------------------------------------------------------                                           --------                                           ---------                                           --------------------
                                            Other revenues                                                                                                                       98                                                  105                                                      162
                                          -------------------- ---------------------------------------------------------------------------------------                                           --------                                           ---------                                           --------------------
                                                Revenues before NIGL and NDGL                                                                                                   2,089                                               2,153                                                    2,103
                                          -------------------- ---------------------------------------------------------------------------------------                                           --------                                           ---------                                           --------------------
                                            Net investment gains (losses)                                                                                                       (75)                                                 (4)                                                --
                                          -------------------- ---------------------------------------------------------------------------------------                                           --------                                           ---------                                           --------------------
                                            Net derivative gains (losses)                                                                                                       (312)                                               (334)                                                    (78)
                                          -------------------- ---------------------------------------------------------------------------------------                                           --------                                           ---------                                           --------------------
                                                               Total revenues                                                                                                                     $1,702                                              $1,815                                                   $2,025
                                             
                                          -------------------- ---------------------------------------------------------------------------------------
                                                               Expenses
                                            Interest credited to policyholder account balances                                                                                  $269                                                $267                                                     $284
                                          -------------------- ---------------------------------------------------------------------------------------                                           --------                                           ---------                                           --------------------
                                            Policyholder benefits and claims                                                                                                     813                                                 738                                                      785
                                          -------------------- ---------------------------------------------------------------------------------------                                           --------                                           ---------                                           --------------------
                                            Amortization of DAC and VOBA                                                                                                         246                                                 305                                                      21
                                          -------------------- ---------------------------------------------------------------------------------------                                           --------                                           ---------                                           --------------------
                                            Interest expense on debt                                                                                                             36                                                  37                                                       37
                                          -------------------- ---------------------------------------------------------------------------------------                                           --------                                           ---------                                           --------------------
                                            Other expenses                                                                                                                       655                                                 581                                                      577
                                          -------------------- ---------------------------------------------------------------------------------------                                           --------                                           ---------                                           --------------------
                                            Total expenses                                                                                                                      2,019                                               1,928                                                    1,704
                                          -------------------- ---------------------------------------------------------------------------------------                                           --------                                           ---------                                           --------------------
                                            Income (loss) before provision for income tax                                                                                       (317)                                               (113)                                                     321
                                          -------------------- ---------------------------------------------------------------------------------------                                           --------                                           ---------                                           --------------------
                                            Provision for income tax expense (benefit)                                                                                          (79)                                                (48)                                                      75
                                          -------------------- ---------------------------------------------------------------------------------------                                           --------                                           ---------                                           --------------------
                                            Net income (loss)                                                                                                                   (238)                                               (65)                                                      246
                                          -------------------- ---------------------------------------------------------------------------------------                                           --------                                           ---------                                           --------------------
                                            Less: Net income (loss) attributable to noncontrolling interests                                                                      1                                                   2                                                 --
                                          -------------------- ---------------------------------------------------------------------------------------                                           --------                                           ---------                                           --------------------
                                                               Net income (loss) available to Brighthouse Financial, Inc.'s                                            $(239)                                               $(67)                                                    $246
                                                               common shareholders
                                                                                                                                                                                                                                                                                                         

Condensed Balance Sheets (Unaudited, in millions)

                                                                                                                                                                             As of
    -------------------- --------------------------------------------------------------------------------------------------------------------                                           ---------------------------------------------------------------------------------------------------------------------------------------
      ASSETS                                                                                                                                                            June 30,           March 31,             June 30,
                                                                                                                                                                                             2018                                                     2018                                                        2017
                         Investments:
         Fixed maturity securities available-for-sale                                                                                                                    $62,343                                                  $63,178                                                     $63,507
    -------------------- --------------------------------------------------------------------------------------------------------------------                                           --------------                                           --------------                                           --------------------
         Equity securities (1)                                                                                                                                             153                                                      160                                                         206
    -------------------- --------------------------------------------------------------------------------------------------------------------                                           --------------                                           --------------                                           --------------------
         Mortgage loans, net                                                                                                                                             12,337                                                   11,308                                                      10,263
    -------------------- --------------------------------------------------------------------------------------------------------------------                                           --------------                                           --------------                                           --------------------
         Policy loans                                                                                                                                                     1,458                                                    1,517                                                       1,513
    -------------------- --------------------------------------------------------------------------------------------------------------------                                           --------------                                           --------------                                           --------------------
         Real estate joint ventures                                                                                                                                        449                                                      441                                                         302
    -------------------- --------------------------------------------------------------------------------------------------------------------                                           --------------                                           --------------                                           --------------------
         Other limited partnership interests                                                                                                                              1,706                                                    1,700                                                       1,623
    -------------------- --------------------------------------------------------------------------------------------------------------------                                           --------------                                           --------------                                           --------------------
         Short-term investments                                                                                                                                            177                                                      293                                                        1,286
    -------------------- --------------------------------------------------------------------------------------------------------------------                                           --------------                                           --------------                                           --------------------
         Other invested assets (1)                                                                                                                                        2,305                                                    2,452                                                       3,109
    -------------------- --------------------------------------------------------------------------------------------------------------------                                           --------------                                           --------------                                           --------------------
            Total investments                                                                                                                                            80,928                                                   81,049                                                      81,809
    -------------------- --------------------------------------------------------------------------------------------------------------------                                           --------------                                           --------------                                           --------------------
      Cash and cash equivalents                                                                                                                                           2,135                                                    1,888                                                       4,443
    -------------------- --------------------------------------------------------------------------------------------------------------------                                           --------------                                           --------------                                           --------------------
      Accrued investment income                                                                                                                                            607                                                      640               

Copyright Business Wire 2018



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