February 2026

Financial professionals don’t live in product silos. They live in real books of business, built client by client, year by year. Many are juggling life insurance, annuities, and health or benefits conversations at the same time, often with hundreds of households relying on them for guidance.

That reality matters when talking about indexed universal life.

IUL doesn’t exist in a vacuum. It shows up alongside fixed annuities, indexed annuities, whole life, term life and everything else we use to solve real planning problems. When expectations around IUL drift too far from how the product works, the impact shows up in real ways. It materializes later as service strain, client frustration and difficult reset conversations.

The guaranteed versus indexed debate keeps resurfacing because it sits right at the intersection of certainty and flexibility. And for experienced professionals, that tension is familiar.

Two designs, two very different comfort zones

Both guaranteed life insurance and IUL are built to solve long-term planning needs, but they do so in different ways. Understanding where each design is most comfortable helps keep client expectations grounded from the start.

Guaranteed life insurance products

• Defined premium structures and contractual death benefits
• Cash value growth that follows a predetermined schedule
• Outcomes that don’t depend on market behavior
• Well-suited for long-range planning, estate objectives and people who value certainty over flexibility

IUL products

• Cash value crediting linked to an external index
• Floors that protect against negative index-related crediting
• Upside shaped by caps, participation rates or similar mechanisms
• Results vary year by year, reflecting built-in flexibility rather than predictability

Neither design is inherently better than the other. They vary in their comfort with variability, which is why setting expectations early matters as much as the product selection itself.

What’s driving continued interest in indexed growth

IUL continues to attract interest because people want optionality. According to LIMRA, IUL accounted for roughly 25% of individual life insurance premiums through the first three quarters of 2025, with new premiums totaling $3.2 billion during that period.

At the same time, whole life remained the largest permanent product category, accounting for about 36% of new premiums.

That combination reflects a broader trend across life and annuity distribution today. People aren’t abandoning guarantees. They’re layering flexibility into their plans, often alongside products that already anchor certainty.

For professionals who already recommend fixed and indexed annuities, this should be familiar. Indexed designs attract attention when people want a buffer against downside risk without sacrificing all upside potential. The same mindset carries into life insurance.

Where IUL expectations tend to slip

Most frustration around IUL doesn’t come from poor design. It builds slowly, as assumptions take hold and aren’t revisited. In practice, those assumptions often go unchallenged until a policy review forces a harder conversation than anyone expected.

IUL crediting is structured, not open-ended. Interest is credited within defined parameters, including caps or participation rates, and policy charges continue regardless of index performance. Outcomes vary by design, meaning results depend not only on market behavior but also on how each policy’s non-guaranteed elements perform over time.

Milliman’s analysis of 5-year trends in the U.S. life insurance industry underscores this point. IUL doesn’t operate as a single long-term promise. Its performance reflects a series of annual credit decisions shaped by carrier management, option costs and other non-guaranteed factors instead of a fixed, locked-in rate of return. That structure is why long-term illustrations are typically built using conservative assumptions in the 6%-7% range.

Those constraints don’t weaken the product. They define how it functions.

When expectations drift toward consistency in a structure built for variability, disappointment can surface even when performance stays within reasonable, defensible bounds. Clear alignment between structure and expectation is what keeps indexed strategies working as intended over the long haul.

Positioning IUL for the long run

IUL works best when it’s positioned with the same discipline professionals bring to annuity planning.

Guaranteed products answer questions about certainty. Indexed designs answer questions about flexibility and long-term accumulation potential. Each comes with tradeoffs, and those tradeoffs need to be stated clearly at the beginning.

For IUL, that starts with conservative assumptions, thoughtful funding strategies, and ongoing monitoring. When expectations are realistic, indexed strategies tend to hold up well inside a broader planning framework.

Why expectation alignment matters

For experienced professionals, complexity comes with the territory. Many manage sizable client bases, work with multiple carriers and understand the downstream impact of misaligned expectations.

Roughly 42% of U.S. adults still say they need life insurance or more of it, according to LIMRA. That gap persists even though solutions are widely available. Access isn’t the issue. Clarity is.

Financial professionals earn their value by explaining structure before outcomes, by grounding recommendations in how products behave, and by resisting the temptation to let illustrations carry the message alone.

That approach protects relationships, reduces friction, and supports sustainable growth.

Managing expectations is critical

The guaranteed versus indexed discussion isn’t going away, and that’s probably a good thing. It forces clearer explanations and better positioning.

In my experience working across life, annuity and advanced planning strategies, the tension usually isn’t about product preference. It’s about how expectations were framed at the beginning.

From a leadership perspective, IUL doesn’t need to be framed as a promise to remain relevant. It needs to be framed as a tool, used intentionally, alongside other solutions that serve different roles.

When expectations match structure, confidence follows. When confidence holds, relationships last. That’s what keeps a book of business healthy long after the sale.

© Entire contents copyright 2026 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

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Legal Advertisement TO THE OWNERS OF THE WITHIN DESCRIBED REAL ESTATE AND ALL INTERESTED PARTIES NOTICE OF SHERIFF’S SALE By virtue of a certified copy of a decree to me, directed from the Clerk of the Superior Court of Bartholomew County, Indiana, in Cause No. 03D01-2510-MF-005670wherein Brighthouse Life Insurance Company was Plaintiff, and Patricia L. McClendon, The United States of America, Department of Treasury, Internal Revenue Service, Capital One, National Association FKA Capital One Bank USA NA, Thomasson, Thomasson, Long &Guthrie P.C. and LVNV Funding LLC were Defendants, requiring me to make the sum as provided for in said Decree, with interest and cost, I will expose at public online sale to the highest bidder on the 7th day of April, 2026, at the hour of 10:00 a.m., with a closing time of 11:00 a.m., or as soon thereafter as is possible, at www.zeusauction.com, the fee simple of the whole body of Real Estate in Bartholomew County, Indiana. Lot Numbered Two Hundred Twenty-eight (228) in Fairlawn, Section Six, as recorded in Plat Book “F”, page 74, in the Office of the Recorder of Bartholomew County, Indiana. More commonly known as: 4120 Fairlawn Drive, Columbus, IN 47203 Parcel No. 03-96-09- 320-005.400-005 Together with rents, issues, income, and profits thereof, said sale will be made without relief from valuation or appraisement laws. “Subject to all liens, encumbrances and easements of record not otherwise extinguished in the proceedings known as Cause 03D01-2510-MF-005670 in the Superior Court of the County of Bartholomew, Indiana.” Attorney for Plaintiff: Stephanie A. Reinhart ATTORNEY NO. 25071-06 MDK Legal P.O. Box 165028 Columbus OH 43216-5028 Chris Lane Sheriff of Bartholomew County COLUMBUS Township 4120 Fairlawn Drive Street Address The Sheriff’s Department does not warrant the accuracy of the street address published herein 60157665 hspaxlp (R) 02-25 – 03-04-11-2026

Featured Local Savings

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Wenatchee, Washington-based Draggoo achieves once-in-a-career honor afforded to the top-ranking individual among New York Life’s more than 12,000 advisors and agents

NEW YORK–(BUSINESS WIRE)–
New York Life today announced the appointment of Braden Draggoo as the company’s 2025 Council President, a once-in-a-career honor afforded to the top-ranking individual among the company’s more than 12,000 advisors and agents. Draggoo earned this honor while embodying a philosophy of client-first service and comprehensive planning that builds lasting legacies.

“We are proud to recognize Braden as Council President and celebrate his remarkable success,” said Sonali Virendra, senior vice president and head of Agency at New York Life. “Braden represents a mindset of putting clients at the center, creating meaningful connections and demonstrating that financial planning is ultimately about helping families design lives filled with purpose.”

Draggoo is the founder and president of Draggoo Financial Group, based in Wenatchee, Washington. His practice provides insurance and financial solutions to individuals, families and business owners across Eastern Washington, the Pacific Northwest and beyond. Focused on unlocking potential, Draggoo aims to create what he refers to as “memories, moments and experiences.” Draggoo Financial Group is not owned or operated by New York Life or its affiliates.

Affiliated with New York Life for 18 years, Draggoo has consistently ranked among the company’s top producers. He is a life and qualifying member of the Million Dollar Round Table (MDRT), an international, independent association of more than 72,000 of the world’s life insurance and financial services professionals. Draggoo is also a Financial Advisor with Eagle Strategies LLC, a Registered Investment Adviser and wholly owned subsidiary of New York Life.

“Serving as Council President is an honor I share with my clients, colleagues and family,” said Draggoo. “Our work is not simply about financial solutions – it is about creating possibilities, building meaningful lives and leaving legacies that endure. I am grateful for the trust placed in me and for the extraordinary support of New York Life.”

ABOUT NEW YORK LIFE

New York Life Insurance Company (www.newyorklife.com), a Fortune 100 company founded in 1845, is the largest¹ mutual life insurance company in the United States and one of the largest life insurers in the world. Headquartered in New York City, New York Life’s family of companies offers life insurance, disability income insurance, retirement income, investments, and long-term care insurance. New York Life has the highest financial strength ratings currently awarded to any U.S. life insurer from all four of the major credit rating agencies.²

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Sara Sefcovic

New York Life

(212) 576-4499

sara_m_sefcovic@newyorklife.com

Source: New York Life

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BELLEVUE, Wash.–(BUSINESS WIRE)–
Symetra Life Insurance Company announced several new enhancements to its suite of fixed indexed annuities, including new crediting strategies, improved certainty and flexibility, and the addition of the Franklin Large Cap Value 15% ER Index.

Symetra Edge Elite, Symetra Edge Frontier and Symetra Edge Revolution are single-premium fixed indexed annuities (FIAs) that provide growth potential based on performance of market indexes. With the option to allocate across different indexed account options, each with multiple crediting options, they offer clients various crediting methods while maintaining principal protection.

“Symetra has consistently focused on building annuity products that provide diversification opportunities in a variety of economic environments. Our latest FIA enhancements reflect our commitment to offer financial professionals and their clients options that are designed to add value and fit customer retirement needs and goals regardless of market conditions,” said Kevin Rabin, Symetra SVP, Retirement Products.

“We’re excited to partner with Symetra to deliver a truly innovative index solution,” commented Colleen Tycz, Head of Strategic Accounts & Insurance Distribution at Franklin Templeton. “This launch brings the benefits of Franklin Templeton’s active ETF expertise into a risk-managed index framework, expanding how and where consumers can follow our investment capabilities.”

Key enhancements include:

• Additional diversification opportunities — Exclusive to Symetra, the new Franklin Large Cap Value 15% ER Index delivers a disciplined approach to value investing, designed specifically for fixed indexed annuities. This index utilizes the actively managed Putnam Focused Large Cap Value ETF (PVAL) for equity exposure and applies a 15% annual volatility target to balance long-term growth potential with daily risk control.

  

• New trigger accounts — The JPMorgan Efficiente® 5 Index is now available utilizing a trigger strategy, meaning that any positive return in the index results will be credited at the stated trigger rate at the end of the interest term. All four indexes within Symetra’s suite of fixed indexed annuities – including the Nasdaq 100® Index and S&P 500® Index — now offer a trigger crediting method.
• Improved certainty and flexibility — Clients can access up to 15% of their contract value each contract year without withdrawal charges and now can choose to auto-rebalance their accounts to a given allocation on each contract anniversary.

To learn more about the latest enhancements to the Symetra Edge suite of fixed indexed annuities, visit www.symetra.com/ProtectedGrowth or view the resources below:

• Symetra Edge Elite
• Symetra Edge Frontier
• Symetra Edge Revolution

About Symetra

Symetra Life Insurance Company is a subsidiary of Symetra Financial Corporation, a diversified financial services company based in Bellevue, Washington. In business since 1957, Symetra provides employee benefits, annuities and life insurance through a national network of benefit consultants, financial institutions, and independent financial professionals and insurance producers. For more information, visit www.symetra.com.

Annuities are issued by Symetra Life Insurance Company, 777 108th Avenue NE, Suite 1200, Bellevue, WA 98004, and are not available in all U.S. states or any U.S. territory.

Symetra Edge Elite, Edge Frontier and Edge Revolution are individual single-premium fixed indexed deferred annuities. Contract form number is ICC19_RC1 in most states.

Annuity contracts have terms and limitations for keeping them in force. Contact your financial professional or insurance producer for complete details.

Guarantees and benefits are subject to the claims-paying ability of the issuing life insurance company.

Except for the JPMorgan ETF Efficiente® 5 Index and Franklin Large Cap Value^SM 15% ER Index, the performance of an index does not include the payment or reinvestment of dividends in the calculation of its performance.

It is not possible to invest in an index.

Symetra reserves the right to add, remove or replace indexes or crediting methods subject to applicable regulatory approval. If any index is discontinued or if the calculation of any index is changed substantially, Symetra reserves the right to substitute a comparable index.

Indexed Account availability may vary by Distributor. Additional Indexed Account options may be available at the end of the interest term. Please consult with your financial professional for more information.

Index disclosures:

The JPMorgan ETF Efficiente® 5 Index (“JPMorgan Index”) has been licensed to Symetra Life Insurance Company (the “Licensee”) for the Licensee’s benefit. Neither the Licensee nor Symetra Edge Revolution (individually, the “Product”) is sponsored, operated, endorsed, recommended, sold or promoted by J.P. Morgan Securities LLC (“JPMS”) or any of its affiliates (together and individually, “JPMorgan”). JPMorgan makes no representation and gives no warranty, express or implied, to contract owners in or those otherwise taking exposure to the Product. Such persons should seek appropriate professional advice before making any investment. The JPMorgan Index has been designed and is compiled, calculated, maintained and sponsored by JPMS without regard to the Licensee, the Product or any contract owner. JPMorgan is under no obligation to continue compiling, calculating, maintaining or sponsoring the JPMorgan Index. JPMorgan may independently issue or sponsor other indices or products that are similar to and may compete with the JPMorgan Index and the Product. JPMorgan may also transact in assets referenced in the JPMorgan Index (or in financial instruments such as derivatives that reference those assets). These activities could have a positive or negative effect on the value of the JPMorgan Index and the Product.

Nasdaq® , Nasdaq-100® , Nasdaq-100 Index® , are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Symetra Life Insurance Company. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

The S&P 500® Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by Symetra Life Insurance Company (“Symetra”). S&P® , S&P 500® , US 500, The 500, iBoxx® , iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Symetra. Symetra’s products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® Index.

The Franklin Large Cap Value 15% ER Index^SM is owned by Franklin Templeton. References below to “Index” apply to Franklin Large Cap Value 15% ER Index^SM and references below to “Licensor” apply to Franklin Templeton.

Licensor has licensed the Index to Symetra Life Insurance Company to be used as a component of certain annuity products (the “Products”). The Index may be calculated by a third party or contain third-party data; each third-party provider and Licensor are collectively “Licensor Parties”. The Products are not sponsored, operated, endorsed, sold or promoted by Licensor Parties. The Index, the proprietary data therein, and related trademarks, are intellectual property licensed from Licensor, and may not be copied, used, or distributed without Licensor’s prior written approval. The Products have not been passed on as to their legality or suitability, and are not regulated, issued, endorsed, sold, guaranteed, or promoted by Licensor Parties. Licensor Parties make no express or implied warranties, and hereby expressly disclaim all warranties of merchantability or fitness for a particular purpose with respect to the Index or any data included therein. Without limiting any of the foregoing, in no event shall Licensor Parties have any liability for any special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages.

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Diana McSweeney

(425) 256-6167

diana.mcsweeney@symetra.com

Source: Symetra Life Insurance Company

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Hartford, CT, February 24, 2026 – U.S. insurers remain optimistic about investment conditions for 2026, even as they anticipate a more challenging macroeconomic environment marked by higher inflation, liquidity risk and lower Fed interest rates, according to the new annual Conning Insurance Investment Risk survey. Despite these headwinds, insurers detect opportunities in private markets, high-quality fixed income and infrastructure which will allow them to increase the investment risk necessary for growth in the year ahead, 201 U.S. P&C and Life insurance investment decision-makers noted. The survey was completed in December of 2025.

• 57% of insurers expect inflation to increase moderately over the next 12 months
• 52% of insurers expect the yield on the 10-year Treasury to end the year below 3.5%
• 47% of insurers say Federal Open Market Committee actions will be significantly important to their investment strategy in 2026

“An increasingly complex market requires insurers to balance heightened risk awareness with the need to adapt to shifting macroeconomic expectations,” said Matt Reilly, managing director, head of Conning’s Insurance Solutions group, and author of the survey report. “Choosing the right partners, tools, and investment strategies is critical in this environment,” he added.

Challenges aside, opportunities for investment improve

Overall, respondents are increasingly optimistic about the investment environment in 2026, as sentiment rebounded from a slight dip in the prior year’s survey.

Most respondents plan to increase their investment risk this year, with 76% saying investment opportunities for insurers are improving. The reasons for this increased risk appetite include higher yields for high-quality fixed income securities, attractive investment opportunities across a variety of private markets, and growing sectors, including both digital and traditional infrastructure.

Although most insurers remain optimistic, there are critical challenges. Inflation returns as the second leading concern for insurers after ranking seventh in last year’s survey. Liquidity risk is also a significantly higher priority after being ranked well below other considerations last year, potentially reflecting the growing level of private assets in portfolios. Otherwise, market and asset price volatility was cited as the top portfolio risk and the risk of recession ranked third.

The increasing role of private assets

In spite of concerns about liquidity, but recognizing the need for diversification and growth, insurers’ appetite for private assets will continue to expand this year. Further, 79% of respondents expect to have between 10% and 25% allocated to private assets in two years, up from an estimated 63% last year. A majority 87% of respondents list their current private asset allocations between 5% and 20% of portfolios, up from 71% who said the same last year.

Asset-based finance is the most commonly cited area of growth with 60% indicating increased exposure this year. Also worth noting is the continued trend toward public and private portfolio allocation decisions. Roughly half of respondents plan to increase allocations to private equity, private placements, real estate and infrastructure, while public market plans are in short-term securities and investment-grade public securities.

Rate expectations impact on portfolio positioning

A focus on Federal Reserve policy returns as a possible headwind with the expectation that interest rates will be lowered in 2026, after several years of elevated yields across the curve. This is expected to increase portfolio duration from 64% last year to 76% this year.

Exposure to floating-rate assets is expected to increase to 57% from 53% last year, suggesting an interest rate barbell approach will continue to prevail.

Portfolio turnover jumped from 50% in the previous survey to 73% this year with most asset managers citing eagerness to pursue tactical market opportunities or, to a lesser degree, aligning portfolios with longer-term investment goals or simply generating cash to support needs.

To learn more about this year’s survey findings, reference the 2026 results summary and interactive graphics on Conning’s website: https://go.conning.com/investment-risk-survey-viewpoint-website-0226

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Anyone who purchased a Pacific Discovery Xelerator indexed universal life insurance policy in California between 2016 and 2019 could be eligible for a piece of a $58 million settlement.

Pacific Life Insurance Co. recently agreed to the settlement in a class-action lawsuit filed in June 2021 in California Superior Court for Orange County. Plaintiff Abigail Mamboleo accused Pacific Life of using misleading illustrations to sell PDX policies.

These illustrations allegedly showed inflated profitability, causing policyholders to pay “hidden costs that essentially eliminate the value in the PDX Policies,” the class action lawsuit said.

The two sides agreed to the settlement late in 2025 and it is scheduled for final approval on May 7, court documents say. Eligible PDX owners have until April 10 to submit a claim and join the settlement.

A spokesman for PacLife declined to comment Monday.

Settlement terms

Under the tentative settlement terms, current policyholders with in-force accounts will receive credits directly to their policy’s accumulated value from a $33 million fund. The exact payout for each individual will be calculated based on their proportional contribution to the total premium pool.

Former policyholders whose accounts have been terminated are also eligible for relief. This group may receive up to three years of term life insurance coverage, with the total settlement relief for this category capped at $25 million. Notably, the new coverage will apply to the same individual originally insured under the eligible policies.

The settlement is the latest chapter in PacLife’s controversial history with IUL. The insurer’s PDX product is the subject of several similar state and federal lawsuits around the country.

Notably, NASCAR racing star Kyle Busch claims that PacLife used misleading illustrations, undisclosed costs, and false promises of guaranteed multipliers and controllable charges in an IUL plan. The Busches paid more than $10.4 million in premiums, resulting in net out-of-pocket losses exceeding $8.58 million, their complaint alleges.

PacLife and its appointed agent, Rodney Smith, allegedly designed and promoted a series of complex IUL policies as “tax-free retirement plans” that were misrepresented as safe, self-funding investment vehicles, the Busches claim in a lawsuit filed in North Carolina.

© Entire contents copyright 2026 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

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AMSTERDAM–(BUSINESS WIRE)–
AM Best is revising its outlook for Germany’s non-life insurance segment to stable from negative.

In its new Best’s Market Segment Report, “Market Segment Outlook: Germany Non-Life Insurance”, AM Best states that the revision of its outlook primarily reflects the expectations that premium rate increases will continue to keep pace with claims inflation, leading to a stabilisation in profitability. In addition, AM Best notes that Germany’s property insurance market remains subject to volatility in results due to its exposure to losses from extreme weather events. While 2025 turned out to be a benign year in this respect, the potential for future severe natural catastrophe losses remains as the product risk in the property segment is dominated by exposure to severe events.

To access a complimentary copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=362703.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Dr Mathilde Jakobsen

Senior Director, Analytics

+31 20 808 3118

mathilde.jakobsen@ambest.com

Edem Kuenyehia

Director, Market Development & Communications

+44 20 7397 0280

edem.kuenyehia@ambest.com

Christopher Sharkey

Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Source: AM Best

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Strategic Highlights

• Executed $94M in share repurchases in the quarter; $245M in 2025 and $790M since program inception as of December 31, 2025
• Delivered 925 matches with home care providers¹ in the CareScout Quality Network in the quarter with over 95% home care coverage of the aged 65-plus census population in the United States
• Closed acquisition of Seniorly, Inc. for total cash consideration of $15M
• Care Assurance launched in October and was live in 39 states as of December 31, 2025
• Continued progress on the LTC² MYRAP³ with $100M of gross incremental premium approvals in the quarter; approximately $34.5B estimated net present value achieved since 2012 from IFAs⁴

Financial Highlights

• Net income⁵ of $223M, or $0.54 per diluted share, and adjusted operating income^5,6 of $144M, or $0.35⁶ per diluted share in 2025
• Net income⁵ of $2M and adjusted operating income^5,6 of $8M in the quarter
• Enact reported adjusted operating income of $146M⁵ in the quarter; distributed $127M in capital returns to Genworth, PMIERs sufficiency ratio⁷ remains strong at 162%⁸
• Completed Closed Block⁹ annual assumption updates with net unfavorable impacts of $6M to the adjusted operating loss in the quarter
• Legacy insurance companies’¹⁰ RBC ratio¹¹ of 300%⁸ and statutory pre-tax income of $71M⁸ in 2025

  

• Genworth holding company cash and liquid assets of $234M¹² at quarter-end

RICHMOND, Va.–(BUSINESS WIRE)–
Genworth Financial, Inc. (NYSE: GNW) today reported results for the quarter ended December 31, 2025.

“Genworth delivered strong results in 2025 as we continued to execute against our strategic priorities,” said Tom McInerney, President & CEO. “We took major steps to advance CareScout’s strategy, with nationwide expansion of the CareScout Quality Network, the launch of Care Plans, our new innovative consumer-facing solution, along with the launch and continued buildout of our CareScout insurance offerings. With Enact as a durable source of cash flows, a growing and increasingly integrated CareScout platform, and disciplined management of our legacy insurance businesses, we are delivering long-term value for shareholders while supporting millions of families navigating the aging journey.”

Consolidated GAAP Financial Highlights

• Beginning in the fourth quarter of 2025, the company changed its reportable segments to better align with how it currently manages the business. Under the new reporting structure, the company operates its business through the following two reportable segments: Enact, comprised primarily of private mortgage insurance products, and Closed Block, comprised of long-term care insurance, life insurance and annuity products that were previously sold under the legacy insurance companies. Financial information has been updated for all periods
• Net income was driven by Enact, which had strong operating performance
• Net investment income, net of taxes, was $620 million in the quarter, down from $631 million in the prior quarter and $626 million in the prior year primarily from lower income from limited partnerships
• Net investment losses, net of taxes, decreased net income by $31 million in the quarter, compared with net investment gains of $78 million in the prior quarter and net investment losses of $32 million in the prior year. The investment losses in the current quarter were driven primarily by net trading losses and mark-to-market adjustments on limited partnerships

Enact

• Results included a pre-tax net reserve release of $60 million reflecting favorable cure performance and the lowering of claim rate expectations. The prior quarter and prior year included pre-tax reserve releases of $45 million and $56 million, respectively
• Pre-tax net investment income of $69 million was up from $62 million in the prior year from higher yields and higher invested assets
• Primary insurance in-force increased 2% versus the prior year to $273.1 billion driven by new insurance written (NIW) and continued elevated persistency
• Primary NIW was up 2% from the prior quarter and 8% from the prior year

• In February 2026, Enact announced a new share repurchase program with authorization to purchase up to $500 million of common stock
• Enact announced an excess of loss reinsurance agreement covering the 2027 book year
• Enact paid a quarterly dividend of $0.21 per share
• Estimated PMIERs sufficiency ratio of 162%, $1,919 million above requirements

Closed Block

Long-term care insurance

• Current quarter loss included unfavorable A/E¹⁵ of $124 million pre-tax primarily from higher claims and lower terminations and an unfavorable impact from assumption updates of $47 million pre-tax
• Unfavorable assumption updates in the current quarter were primarily related to benefit utilization and healthy life mortality and incidence updates that align with near-term experience, largely offset by updates reflecting favorable approval experience and benefit reductions and claim termination rates
• Prior quarter loss included unfavorable A/E of $107 million pre-tax primarily from lower terminations and higher benefit utilization
• Prior year loss included unfavorable A/E of $97 million pre-tax primarily from lower terminations and higher claims and an unfavorable impact from assumption updates of $20 million pre-tax

Life insurance

• Current quarter income reflects favorable interest rate assumption updates of $15 million pre-tax
• Prior year included a net favorable impact of $30 million pre-tax from a model refinement and assumption updates

Annuities

• Current quarter income reflects favorable impact from annual assumption updates of $25 million pre-tax primarily related to mortality compared to unfavorable updates of $18 million pre-tax in the prior year

Corporate and Other

• The current quarter adjusted operating loss was $24 million, up from $21 million in the prior quarter and $23 million in the prior year primarily driven by continued investment in CareScout and debt service, partially offset by favorable tax-related items

Legacy Insurance Companies¹⁰ Statutory Results⁸ and RBC Ratio⁸

• Statutory pre-tax income was $71 million in 2025, with $3 million in the current quarter
  • LTC continued to benefit from premium increases and benefit reductions from IFAs. Results reflected higher claims and lower reserve releases from in-force rate actions, largely offset by higher income from limited partnerships than the prior quarter. The current quarter included an unfavorable $12 million pre-tax impact from assumption updates; prior year included a $79 million increase in cash flow testing reserves in GLICNY, partially offset by a net $20 million pre-tax benefit from assumption updates
  • Life insurance results included a net benefit from assumption updates of $51 million compared to $75 million in the prior year and favorable reserve changes from block runoff
  • Annuity results reflected favorable net equity market and interest rate impacts and unfavorable assumption updates, though lower than the prior year
• Current quarter estimated GLIC consolidated RBC ratio was 300%, down from the prior year driven by higher required capital as the limited partnership portfolio grows, partially offset by statutory earnings in the year.

Holding Company Cash and Liquid Assets

• Cash and liquid assets were $234 million at the end of the current quarter, which included approximately $127 million of cash held for future obligations, including advance cash payments from the company’s subsidiaries
• Cash inflows during the current quarter included $127 million from Enact capital returns
• Current quarter cash outflows included $96 million¹⁸ in share repurchases, $22 million in net tax payments, $18 million related to debt servicing costs and the repurchase of $7 million in principal of holding company debt at a discount

Capital Allocation and Shareholder Returns

• Executed $94 million in share repurchases in the quarter at an average price of $8.66 per share
• Executed $790 million in share repurchases since the program’s inception through December 31, 2025 at an average price of $6.21 per share

About Genworth Financial

Genworth Financial, Inc. (NYSE: GNW) is a publicly traded holding company headquartered in Richmond, Virginia. Through its family of brands—including CareScout, Genworth, and Enact—Genworth uses its more than 150 years of experience to help families navigate the aging journey with clarity and confidence, offering guidance, products, and services that support caregiving decisions, long-term care planning, and the financial challenges of aging. Genworth is the majority owner of Enact Holdings, Inc. (Nasdaq: ACT), a leading U.S. mortgage insurance provider. For more information, visit https://www.genworth.com.

Conference Call Information

Investors are encouraged to read this press release, summary presentation and financial supplement which are now posted on the company’s website, https://investor.genworth.com.

Genworth will conduct a conference call on February 24, 2026 at 9:00 a.m. (ET) to discuss its fourth quarter results, which will be accessible via:

• Telephone: 800-330-6710 or 213-279-1505 (outside the U.S.); conference ID # 5373572; or
• Webcast: https://investor.genworth.com/news-events/ir-calendar

Allow at least 15 minutes prior to the call time to register for the call. A replay of the webcast will be available on the company’s website for one year.

Use of Non-GAAP Measures

Management evaluates performance and allocates resources based on a non-GAAP financial measure entitled “adjusted operating income (loss).” Management evaluates adjusted operating income (loss) as a key measure to assess performance and support new business initiatives because the measure more accurately reflects overall operating performance, as it minimizes the impact of macroeconomic volatility. GLIC and its subsidiaries, which comprise the Closed Block segment, are managed on a standalone basis; therefore, the company does not allocate capital to its Closed Block segment.

The company defines adjusted operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income (loss) attributable to noncontrolling interests, net investment gains (losses), changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items. A component of the company’s net investment gains (losses) is the result of estimated future credit losses, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to the company’s discretion and are influenced by market opportunities, as well as asset-liability matching considerations. The company excludes net investment gains (losses), changes in fair value of market risk benefits attributable to interest rates, equity markets and associated hedges, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, restructuring costs and infrequent or unusual non-operating items from adjusted operating income (loss) because, in the company’s opinion, they are not indicative of overall operating performance.

While some of these items may be significant components of net income (loss) determined in accordance with GAAP, the company believes that adjusted operating income (loss), and measures that are derived from or incorporate adjusted operating income (loss), are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Adjusted operating income (loss) is not a substitute for net income (loss) determined in accordance with GAAP. In addition, the company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies.

Adjustments to reconcile net income (loss) to adjusted operating income (loss) assume a 21% current tax rate, plus any associated deferred taxes, and are net of the portion attributable to noncontrolling interests. Changes in fair value of market risk benefits and associated hedges are adjusted to exclude changes in reserves, attributed fees and benefit payments.

The table at the end of this press release provides a reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) for the three and twelve months ended December 31, 2025 and 2024, as well as the three months ended September 30, 2025 and reflects adjusted operating income (loss) as determined in accordance with accounting guidance related to segment reporting.

Statutory Accounting Data

The company presents certain supplemental statutory data for GLIC and its consolidating life insurance subsidiaries that has been prepared on the basis of statutory accounting principles (SAP). GLIC and its consolidating life insurance subsidiaries file financial statements with state insurance regulatory authorities and the National Association of Insurance Commissioners that are prepared using SAP, an accounting basis either prescribed or permitted by such authorities. Due to differences in methodology between SAP and GAAP, the values for assets, liabilities and equity, and the recognition of income and expenses, reflected in financial statements prepared in accordance with GAAP are materially different from those reflected in financial statements prepared under SAP. This supplemental statutory data should not be viewed as an alternative to, or used in lieu of, GAAP.

This supplemental statutory data includes the company action level RBC ratio for GLIC and its consolidating life insurance subsidiaries as well as combined statutory pre-tax earnings from the principal legacy insurance companies, GLIC, GLAIC and GLICNY. Statutory pre-tax earnings represent the net gain from operations, including the impact from in-force rate actions, before dividends to policyholders, refunds to members and federal income taxes and before realized capital gains or (losses). The combined product level statutory pre-tax earnings are grouped on a consistent basis as those provided on page six of the statutory Annual Statements. Management uses and provides this supplemental statutory data because it believes it provides a useful measure of, among other things, statutory pre-tax earnings and the adequacy of capital. Management uses this data to measure against its policy to manage the legacy insurance companies with internally generated capital.

Cautionary Note Regarding Forward-Looking Statements

This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “estimates,” “will,” “may” or words of similar meaning and include, but are not limited to, statements regarding the outlook for the company’s future business and financial performance. Examples of forward-looking statements include statements the company makes relating to potential dividends or share repurchases; future return of capital by Enact Holdings, Inc. (Enact Holdings), including share repurchases, and quarterly and special dividends; the cumulative economic benefit of approved and future rate increases and benefit reductions included in the multi-year in-force rate action plan and other reduced benefit options associated with the long-term care insurance products in the company’s Closed Block segment; planned investments in and the company’s outlook for new lines of business or new insurance and other products and services, such as those it is pursuing with its CareScout business (CareScout), including through its CareScout services business (CareScout Services) and its CareScout insurance business (CareScout Insurance); the expected benefits and/or synergies of the Seniorly, Inc. (Seniorly) acquisition; future financial performance, including the expectation that quarterly adverse variances between actual and expected experience could persist resulting in future remeasurement losses in the company’s long-term care insurance products in its Closed Block segment; the resolution of the appeal or any potential litigation recovery amounts in connection with the AXA S.A. (AXA) and Santander Cards UK Limited (Santander) litigation, and Genworth’s planned use of proceeds from any recovery in connection with the litigation, including share repurchases, debt repurchases and investments in new businesses; future financial condition and liquidity of the company’s businesses; and statements the company makes regarding the outlook of the U.S. economy.

Forward-looking statements are based on management’s current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from those in the forward-looking statements due to global political, economic, inflation, business, competitive, market, regulatory and other factors and risks, including but not limited to, the following:

• the inability to successfully launch new lines of business, including long-term care insurance and other products and services the company is pursuing with CareScout;
• the company’s failure to maintain the self-sustainability of its legacy insurance subsidiaries, including as a result of the inability to achieve desired levels of in-force management actions and/or the timing of future premium rate increases and associated benefit reductions taking longer to achieve than originally assumed; other regulatory actions negatively impacting the company’s life insurance businesses;
• inaccuracies or changes in estimates, assumptions, methodologies, valuations, projections and/or models, which result in inadequate reserves or other adverse results (including as a result of any changes in connection with quarterly, annual or other reviews);
• the impact on holding company liquidity caused by an inability to receive dividends or any other returns of capital from Enact Holdings, and limited sources of capital and financing and the need to seek additional capital on unfavorable terms;
• the impact on any potential recovery in the AXA and Santander litigation resulting from a successful appeal, significant delays or any other adverse development in the litigation;
• adverse changes to the structure or requirements of Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) or the U.S. mortgage insurance market; an increase in the number of loans insured through federal government mortgage insurance programs, including those offered by the Federal Housing Administration; the inability of Enact Holdings and/or its U.S. mortgage insurance subsidiaries to continue to meet the requirements mandated by PMIERs (or any adverse changes thereto), the inability to meet minimum statutory capital requirements of applicable regulators or the mortgage insurer eligibility requirements of Fannie Mae or Freddie Mac;
• changes in economic, market and political conditions, labor shortages and fluctuating interest rates; unanticipated financial events, which could lead to market-wide liquidity problems and other significant market disruption resulting in losses, defaults or credit rating downgrades of other financial institutions; deterioration in economic conditions, a recession or a decline in home prices, all of which could be driven by many potential factors, including a U.S. federal government shutdown; an increase in the cost of care impacting the company’s long-term care insurance products included in its Closed Block segment; changes in international trade policy, including the potential impact of new or increased tariffs, retaliatory policies or actions from other countries, and trade wars or other events that lead to political and economic instability; changes in government or monetary policies; changes within regulatory agencies; changes in immigration policy; and fluctuations in international securities markets;
• downgrades in financial strength and credit ratings and potential adverse impacts to liquidity; counterparty credit risks; defaults by counterparties to reinsurance arrangements or derivative instruments; defaults or other events impacting the value of invested assets;
• changes in tax rates or tax laws, or changes in accounting and reporting standards;
• litigation and regulatory investigations or other actions, including commercial and contractual disputes with counterparties;
• the inability to retain, attract and motivate qualified employees or senior management;
• changes in the composition of Enact Holdings’ business or undue concentration by customer or geographic region;
• the impact from deficiencies in the company’s disclosure controls and procedures or internal control over financial reporting;
• the occurrence of natural or man-made disasters, including geopolitical tensions and war (including the Russian invasion of Ukraine, instability in the Middle East and economic competition between the United States and China, among others), a public health emergency, including pandemics, or climate change;
• the inability to effectively manage information technology systems (including artificial intelligence), cyber incidents or other failures, disruptions or security breaches of the company or its third-party vendors, as well as unknown risks and uncertainties associated with artificial intelligence;
• the inability of third-party vendors to meet their obligations to the company;
• the lack of availability, affordability or adequacy of reinsurance to protect the company against losses;
• a decrease in the volume of high loan-to-value home mortgage originations or an increase in the volume of mortgage insurance cancellations;
• unanticipated claims resulting from Enact Holdings’ delegated underwriting and loss mitigation programs;
• the impact of medical advances such as genetic research and diagnostic imaging, emerging new technology, including artificial intelligence and related legislation; and
• other factors described in the risk factors contained in Item 1A of the company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on February 28, 2025.

The company provides additional information regarding these risks and uncertainties in its Annual Report on Form 10-K. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Accordingly, for the foregoing reasons, the company cautions the reader against relying on any forward-looking statements. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required under applicable securities laws.

Footnote Definitions

1. A match with a home care provider is identified when CareScout validates and approves an invoice from a CareScout Quality Network provider that demonstrates a CareScout member has received services for the first time, and the appropriate discount was applied.
2. Long-term care insurance.
3. Multi-year rate action plan.
4. In-force rate actions.
5. All references reflect amounts available to Genworth’s common stockholders.
6. This is a financial measure that is not calculated based on U.S. Generally Accepted Accounting Principles (GAAP). See the Use of Non-GAAP Measures section of this press release for additional information.
7. The Private Mortgage Insurer Eligibility Requirements (PMIERs) sufficiency ratio is calculated as available assets divided by required assets as defined within PMIERs.
8. Company estimate for the fourth quarter of 2025 due to timing of the preparation and filing of the statutory financial statement(s).
9. Beginning in the fourth quarter of 2025, the company changed its reportable segments—the Closed Block segment is comprised of long-term care insurance, life insurance and annuity products.
10. Genworth’s legacy insurance companies: GLIC, Genworth Life and Annuity Insurance Company (GLAIC) and Genworth Life Insurance Company of New York (GLICNY).
11. Risk-based capital ratio based on company action level for Genworth Life Insurance Company (GLIC) consolidated.
12. Includes approximately $127 million, $145 million and $186 million of cash held for future obligations, including advance cash payments from the company’s subsidiaries as of December 31, 2025, September 30, 2025 and December 31, 2024, respectively.
13. Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of the loss from continuing operations for the three months ended December 31, 2025, the company was required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended December 31, 2025, as the inclusion of shares for performance stock units, restricted stock units and other equity-based awards of 6.0 million would have been antidilutive to the calculation. If the company had not incurred a loss from continuing operations for the three months ended December 31, 2025, dilutive potential weighted-average common shares outstanding would have been 402.4 million.
14. Reflects Genworth’s ownership of equity including accumulated other comprehensive income (loss) and excluding noncontrolling interests of $1,017 million, $1,009 million and $937 million as of December 31, 2025, September 30, 2025 and December 31, 2024, respectively.
15. Actual variances from expected experience.
16. Net gain (loss) from operations before dividends to policyholders, refunds to members and federal income taxes for GLIC, GLAIC and GLICNY, and before realized capital gains or (losses).
17. Holding company cash and liquid assets comprises assets held in Genworth Holdings, Inc. (the issuer of outstanding public debt) which is a wholly-owned subsidiary of Genworth Financial, Inc.
18. Includes $2 million of share repurchases executed in the third quarter of 2025 but settled in the fourth quarter of 2025.
19. Net investment (gains) losses were adjusted for the portion attributable to noncontrolling interests of $1 million and $2 million for the three months ended December 31, 2025 and 2024, respectively, and $3 million and $4 million for the twelve months ended December 31, 2025 and 2024, respectively.
20. Changes in fair value of market risk benefits and associated hedges were adjusted to exclude changes in reserves, attributed fees and benefit payments of $(2) million and $(21) million for the three months ended December 31, 2025 and 2024, respectively, $(8) million and $(30) million for the twelve months ended December 31, 2025 and 2024, respectively, and $(2) million for the three months ended September 30, 2025.
21. (Gains) losses on early extinguishment of debt were net of the portion attributable to noncontrolling interests of $2 million for the twelve months ended December 31, 2024.
22. Taxes on adjustments included tax expense (benefits) of $3 million and $(24) million for the three and twelve months ended December 31, 2025, respectively, and $(27) million for the three months ended September 30, 2025 related to a release of a portion of the valuation allowance on certain deferred tax assets.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260223312330/en/

Investors:
Christine Jewell

InvestorInfo@genworth.com

Media:
Evans Mandes

Evans.Mandes@genworth.com

Source: Genworth Financial, Inc.

The post Genworth Financial Announces Fourth Quarter 2025 Results appeared first on Insurance News | InsuranceNewsNet.

• Preliminary combined risk-based capital (“RBC”) ratio of 456%; holding company liquid assets of $0.9 billion
• Annuity sales for full year 2025 of $10.3 billion, primarily driven by record sales of Shield Level Annuities
• Record life sales for full year 2025 of $143 million, primarily driven by sales of Brighthouse SmartCare
• Fourth quarter 2025 net income available to shareholders of $112 million, or $1.93 per diluted share
• Fourth quarter 2025 adjusted earnings, less notable items*, of $227 million, or $3.93 per diluted share

CHARLOTTE, N.C.–(BUSINESS WIRE)–
Brighthouse Financial, Inc. (“Brighthouse Financial” or the “company”) (Nasdaq: BHF) announced today its financial results for the fourth quarter and full year ended December 31, 2025.

Fourth Quarter and Full Year 2025 Results

The company reported net income available to shareholders of $112 million in the fourth quarter of 2025, or $1.93 per diluted share, compared with net income available to shareholders of $646 million in the fourth quarter of 2024, or $10.79 per diluted share. The company anticipates volatility in net income (loss) given the differences between its hedge target and GAAP reserves, which are impacted by market performance.

The company ended the fourth quarter of 2025 with common stockholders’ equity (“book value”) of $5.1 billion, or $88.66 per common share, and book value, excluding accumulated other comprehensive income (“AOCI”) of $8.8 billion, or $153.89 per common share.

For the fourth quarter of 2025, the company reported adjusted earnings* of $214 million, or $3.70 per diluted share, compared with adjusted earnings of $304 million, or $5.07 per diluted share, for the fourth quarter of 2024.

Adjusted earnings for the quarter reflect a $13 million unfavorable notable item, or $0.22 per diluted share, related to actuarial refinements.

On a full year basis, the company reported net income available to shareholders of $331 million in 2025, or $5.71 per diluted share, compared with net income available to shareholders of $286 million in 2024, or $4.64 per diluted share. The company anticipates volatility in net income (loss) given the differences between its hedge target and GAAP reserves, which are impacted by market performance. Full year 2025 adjusted earnings, less notable items*, were $931 million, or $16.07 per diluted share, compared with full year 2024 adjusted earnings, less notable items, of $1,209 million, or $19.63 per diluted share.

Corporate expenses in the fourth quarter of 2025 were $234 million on a pre-tax basis. This represents an increase from $210 million of corporate expenses in the fourth quarter of 2024 and $205 million in the third quarter of 2025. For the full year 2025, corporate expenses totaled $880 million, compared with $820 million for the full year 2024. The corporate expenses include costs incurred in connection with the previously announced pending acquisition of the company of $15 million and $32 million for the fourth quarter and full year 2025, respectively.

The company’s full year 2025 annuity sales were $10.3 billion, an increase of 3% year-over-year. Annuity sales were flat sequentially and increased 22% quarter-over-quarter, driven by record sales of Shield Level Annuities, which increased 4% year-over-year, 10% quarter-over-quarter, and 1% sequentially. Life sales in 2025 were a record $143 million, an increase of 19% year-over-year, 9% quarter-over-quarter and a decrease of 5% sequentially.

Annuities

Adjusted earnings in the Annuities segment were $304 million in the current quarter, compared with adjusted earnings of $279 million in the fourth quarter of 2024 and adjusted earnings of $304 million in the third quarter of 2025.

There were no notable items in the current quarter. The fourth quarter of 2024 included a $48 million unfavorable notable item related to actuarial model updates, and the third quarter of 2025 included a $7 million unfavorable notable item related to the annual actuarial review and related refinements.

On a quarter-over-quarter basis, adjusted earnings, less notable items, reflect lower fees and higher amortization of deferred acquisition costs (“DAC”). On a sequential basis, adjusted earnings, less notable items, reflect lower fees and higher amortization of DAC, partially offset by higher net investment income.

As mentioned above, the company’s full year 2025 annuity sales were $10.3 billion, an increase of 3% year-over-year. Annuity sales were flat sequentially and increased 22% quarter-over-quarter, driven by record sales of Shield Level Annuities, which increased 4% year-over-year, 10% quarter-over-quarter, and 1% sequentially.

Life

The Life segment had adjusted earnings of $18 million in the current quarter, compared with adjusted earnings of $52 million in the fourth quarter of 2024 and adjusted earnings of $40 million in the third quarter of 2025.

The current quarter included a $6 million unfavorable notable item. There were no notable items in the fourth quarter of 2024. The third quarter of 2025 included $11 million of favorable notable items related to the annual actuarial review and related refinements.

On a quarter-over-quarter basis, adjusted earnings, less notable items, reflect a lower underwriting margin, lower net investment income and higher expenses. On a sequential basis, adjusted earnings, less notable items, reflect lower net investment income.

As mentioned above, the company reported record life sales of $143 million in 2025. Life sales increased 19% year-over-year, 9% quarter-over-quarter and decreased 5% sequentially.

Run-off

The Run-off segment had an adjusted loss of $58 million in the current quarter, compared with an adjusted loss of $27 million in the fourth quarter of 2024 and adjusted earnings of $641 million in the third quarter of 2025.

The current quarter included a $7 million unfavorable notable item. There were no notable items in the fourth quarter of 2024. The third quarter of 2025 included $705 million of favorable notable items related to the annual actuarial review and related refinements.

On a quarter-over-quarter basis, the adjusted loss, less notable items, reflects lower net investment income and a lower underwriting margin, partially offset by lower expenses. On a sequential basis, the adjusted loss, less notable items, reflects higher net investment income.

Corporate & Other

The Corporate & Other segment had an adjusted loss of $50 million in the current quarter, compared with break-even adjusted earnings in the fourth quarter of 2024 and an adjusted loss of $15 million in the third quarter of 2025.

There were no notable items in the current quarter or the comparison quarters.

On a quarter-over-quarter basis, the adjusted loss reflects higher expenses related to the previously mentioned costs incurred in connection with the pending acquisition of the company and lower net investment income. On a sequential basis, the adjusted loss reflects higher expenses related to the previously mentioned costs incurred in connection with the pending acquisition of the company.

Net Investment Income

Net investment income was $1,328 million and adjusted net investment income* was $1,334 million in the current quarter.

Adjusted net investment income decreased $42 million on a quarter-over-quarter basis primarily driven by a reduction in the size of the institutional spread margin business and the impact of lower short-term interest rates. Adjusted net investment income increased $7 million sequentially, driven by higher alternative investment income.

The adjusted net investment income yield* was 4.44% during the quarter.

Capitalization

As of December 31, 2025:

• Statutory combined total adjusted capital⁽¹⁾ was $5.3 billion
• Combined RBC ratio⁽¹⁾ of 456%, which is above our target range of 400% to 450% in normal market conditions
• The combined RBC ratio reflects:
  • a reserve increase from the statutory annual actuarial review completed in the fourth quarter,
  • a reduction in required capital from this actuarial review, and
  • a benefit from a reinsurance transaction with a third party to reinsure certain universal life policies with secondary guarantees and certain term life policies, which was entered into in the fourth quarter.
• Holding company liquid assets were $0.9 billion, which reflects the previously mentioned costs incurred in connection with the pending acquisition of the company and the timing of senior debt interest expense.

Pending Merger with Aquarian Capital

On November 6, 2025, Aquarian Capital LLC (“Aquarian Capital”), a diversified global holding company with a strategic portfolio of insurance and asset management businesses, and Brighthouse Financial, announced that they had entered into a definitive merger agreement under which an affiliate of Aquarian Capital will acquire Brighthouse Financial for $70.00 per share in an all-cash transaction valued at approximately $4.1 billion.

At a special meeting held on February, 12, 2026, Brighthouse Financial stockholders voted to adopt the merger agreement. The transaction is expected to close in 2026 and is subject to customary closing conditions, including receipt of insurance regulatory approvals.

About Brighthouse Financial, Inc.

Brighthouse Financial, Inc. (Brighthouse Financial) (Nasdaq: BHF) is on a mission to help people achieve financial security. As one of the largest providers of annuities and life insurance in the U.S.,⁽¹⁾ we specialize in products designed to help people protect what they’ve earned and ensure it lasts. Learn more at brighthousefinancial.com.

Note Regarding Forward-Looking Statements

This press release, and any related oral statements, contain various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. Words such as “estimate,” “expect,” “project,” “may,” “will,” “could,” “intend,” “goal,” “target,” “guidance,” “forecast,” “preliminary,” “objective,” “continue,” “aim,” “plan,” “believe” and similar expressions or the negative of those expressions or verbs, identify forward-looking statements. Readers are cautioned that these statements are not guarantees of future performance. Forward-looking statements are not historical facts but instead represent only Brighthouse Financial’s beliefs regarding future events, which may by their nature be inherently uncertain, and some of which may be outside Brighthouse Financial’s control.

Such forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Factors include, among others, Brighthouse Financial’s ability to complete the merger on the timeframe or in the manner currently anticipated or at all, including due to a failure to obtain the regulatory approvals required for the closing of the merger or the occurrence of any event, change or other circumstance that could give rise to the right of one or both of the parties to terminate the merger agreement; the effect of the pendency of the merger on Brighthouse Financial’s ongoing business and operations, including disruption to Brighthouse Financial’s business relationships, the diversion of management’s attention from ongoing business operations and opportunities, or the outcome of any legal proceedings that may be instituted against Aquarian Capital or Brighthouse Financial following announcement of the merger; restrictions on the conduct of Brighthouse Financial’s business prior to the closing of the merger and on Brighthouse Financial’s ability to pursue alternatives to the merger; the possibility that the merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; differences between actual experience and actuarial assumptions and the effectiveness of Brighthouse Financial’s actuarial models; higher risk management costs and exposure to increased market risk due to guarantees within certain of Brighthouse Financial’s products; the effectiveness of Brighthouse Financial’s risk management strategy and the impacts of such strategy on volatility in Brighthouse Financial’s profitability measures and the negative effects on Brighthouse Financial’s statutory capital; material differences between actual outcomes and the sensitivities calculated under certain scenarios that Brighthouse Financial may utilize in connection with its risk management strategies; the impact of interest rates on Brighthouse Financial’s future ULSG policyholder obligations and net income volatility; the potential material adverse effect of changes in accounting standards, practices or policies applicable to Brighthouse Financial, including changes in the accounting for long-duration contracts; loss of business and other negative impacts resulting from a downgrade or a potential downgrade in Brighthouse Financial’s financial strength or credit ratings; the availability of reinsurance and the ability of the counterparties to Brighthouse Financial’s reinsurance or indemnification arrangements to perform their obligations thereunder; heightened competition, including with respect to service, product features, product mix, scale, price, actual or perceived financial strength, claims-paying ratings, credit ratings, e-business capabilities and name recognition; Brighthouse Financial’s ability to market and distribute its products through distribution channels and maintain relationships with key distribution partners; any failure of third parties to provide services Brighthouse Financial needs, any failure of the practices and procedures of such third parties and any inability to obtain information or assistance it needs from third parties; the ability of Brighthouse Financial’s subsidiaries to pay dividends to it, and its ability to pay dividends to its shareholders and repurchase its common stock; the risks associated with climate change; the adverse impact of public health crises, extreme mortality events or similar occurrences on Brighthouse Financial’s business and the economy in general; the impact of adverse capital and credit market conditions, including with respect to Brighthouse Financial’s ability to meet liquidity needs and access capital; the impact of economic conditions in the capital markets and the U.S. and global economy, as well as geopolitical events, tariffs imposed or threatened by the U.S. or foreign governments, military actions or catastrophic events, on Brighthouse Financial’s profitability measures as well as its investment portfolio, including on realized and unrealized losses and impairments, net investment spread and net investment income; the financial risks that Brighthouse Financial’s investment portfolio is subject to, including credit risk, interest rate risk, inflation risk, market valuation risk, liquidity risk, real estate risk, derivatives risk, and other factors outside Brighthouse Financial’s control; the impact of changes in regulation and in supervisory and enforcement policies or interpretations thereof on Brighthouse Financial’s insurance business or other operations; the potential material negative tax impact of potential future tax legislation that could make some of Brighthouse Financial’s products less attractive to consumers or increase our tax liability; the effectiveness of Brighthouse Financial’s policies, procedures and processes in managing risk; the loss or disclosure of confidential information, damage to Brighthouse Financial’s reputation and impairment of its ability to conduct business effectively as a result of any failure in cyber- or other information security systems; whether all or any portion of the tax consequences of Brighthouse Financial’s separation from MetLife, Inc. are not as expected, leading to material additional taxes or material adverse consequences to tax attributes that impact Brighthouse Financial; other factors that may affect future results of Brighthouse Financial; and management’s response to any of the aforementioned factors.

Furthermore, such forward-looking statements speak only as of the date of this press release. Except as required by law, the parties undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. Risks or uncertainties (i) that are not currently known to the parties, (ii) that the parties currently deem to be immaterial or (iii) that could apply to any company could also materially adversely affect the future results of Brighthouse Financial. Additional information concerning certain factors is contained in Brighthouse Financial’s SEC filings, including but not limited to its most recent Annual Report on Form 10-K, as well as subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

The information contained on or connected to any websites referenced in this press release is not incorporated by reference into this press release.

Non-GAAP and Other Financial Disclosures

Our definitions of 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 accounting principles generally accepted in the United States of America, also known as “GAAP.” We believe that these non-GAAP financial measures enhance the understanding of our performance by the investor community by highlighting the results of operations and the underlying profitability drivers of our business.

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

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 is a financial measure used by management to evaluate performance and facilitate comparisons to industry results. This financial measure, which may be positive or negative, focuses on our primary businesses by excluding the impact of market volatility, which could distort trends. Adjusted earnings was updated during the first quarter of 2025 in connection with the establishment of a trading portfolio comprised of certain fixed income securities. The company did not have trading securities prior to the first quarter of 2025.

Adjusted earnings reflect adjusted revenues less (i) adjusted expenses, (ii) provision for income tax expense (benefit), (iii) net income (loss) attributable to noncontrolling interests and (iv) preferred stock dividends. Provided below are the adjustments to GAAP revenues and GAAP expenses used to calculate adjusted revenues and adjusted expenses, respectively.

The following items are excluded from total revenues in calculating the adjusted revenues component of adjusted earnings:

• Net investment gains (losses);

• Investment gains (losses) on trading securities measured at estimated fair value through net investment income; and

• Net derivative gains (losses) (“NDGL”), excluding earned income and amortization of premium 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”).

The following items are excluded from total expenses in calculating the adjusted expenses component of adjusted earnings:

• Change in market risk benefits; and

• Change in fair value of the crediting rate on experience-rated contracts and market value adjustments on institutional group annuities that are economically offset by gains (losses) on the related trading securities (“Market Value Adjustments”).

The provision for income tax related to adjusted earnings is calculated using the statutory tax rate of 21%, net of impacts related to the dividends received deduction, tax credits and current period non-recurring items.

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 Common Equity

Adjusted earnings per common share and adjusted return on common 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. The weighted average common shares outstanding used to calculate adjusted earnings per share will differ from such shares used to calculate diluted net income (loss) available to shareholders per common share when the inclusion of dilutive shares has an anti-dilutive effect for one calculation but not for the other.

Adjusted return on common 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 common stockholders’ equity, excluding AOCI.

Adjusted Net Investment Income

Adjusted net investment income is used by management to measure our performance, and we believe it enhances the understanding of our investment portfolio results. Adjusted net investment income represents GAAP net investment income plus Investment Hedge Adjustments less investment gains (losses) on trading securities.

Adjusted Net Investment Income Yield

Similar to adjusted net investment income, adjusted net investment income yield is used by management as a performance measure that we believe enhances the understanding of our investment portfolio results. Adjusted net investment income yield represents adjusted net investment income as a percentage 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 and collateral received from derivative counterparties. Investment fee and expense yields are calculated as a percentage of average quarterly asset estimated fair values. Asset estimated fair values exclude collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties.

Other Financial Disclosures

Corporate Expenses

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

Notable Items

Certain of the non-GAAP measures described above may be presented further adjusted to exclude notable items. Notable items reflect the unfavorable (favorable) after-tax impact on our results of certain unanticipated items and events, as well as certain items and events that were anticipated. 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 “Brighthouse Financial, Inc.’s common stockholders’ equity, including AOCI.” Book value per common share is defined as ending Brighthouse Financial, Inc.’s common 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 common stockholders’ equity, excluding AOCI, divided by ending common shares outstanding.

CTE70

CTE70 is defined as the amount of assets required to satisfy contract holder obligations across market environments in the average of the worst thirty percent of a set of 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 two percent of a set of capital market scenarios over the life of the contracts.

Holding Company

Holding company means, collectively, Brighthouse Financial, Inc., Brighthouse Holdings, LLC, and Brighthouse Services, LLC.

Holding Company Liquid Assets

Holding company liquid assets include liquid assets in Brighthouse Financial, Inc., Brighthouse Holdings, LLC, and Brighthouse Services, LLC. Liquid assets are comprised of 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 assets held in trust.

Total Adjusted Capital

Total adjusted capital primarily consists of statutory capital and surplus, as well as the statutory asset valuation reserve. When referred to as “combined,” represents that of our insurance subsidiaries as a whole.

Sales

Life insurance sales consist of 100 percent of annualized new premium for term life, first-year paid premium for whole life, universal life, and variable universal life, and total paid premium for indexed universal life. We exclude company-sponsored internal exchanges, corporate-owned life insurance, bank-owned life insurance, and private placement variable universal life.

Annuity sales consist of 100 percent of direct statutory premiums, except for fixed index annuity sales, which represents 100 percent of gross sales on directly written business and the proportion of assumed gross sales under reinsurance agreements. Annuity sales exclude certain internal exchanges. These sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity.

Normalized Statutory Earnings (Loss)

Normalized statutory earnings (loss) is used by management to measure our insurance companies’ ability to pay future distributions and incorporates the effectiveness of our hedging program as well as other factors related to our business. Normalized statutory earnings (loss) is calculated as statutory pre-tax net gain (loss) from operations adjusted for the favorable or unfavorable impacts of (i) net realized capital gains (losses) before capital gains tax (excluding gains (losses) and taxes transferred to the interest maintenance reserve), (ii) the change in total asset requirement at CTE98, net of the change in our variable annuity reserves, which are calculated at CTE70, and (iii) pre-tax unrealized gains (losses) associated with our variable annuities and Shield hedges, net of reinsurance, and other equity risk management strategies. Normalized statutory earnings (loss) may be further adjusted for certain unanticipated items that impact our results in order to help management and investors better understand, evaluate and forecast those results.

Risk-Based Capital Ratio

The risk-based capital ratio is a method of measuring an insurance company’s capital, taking into consideration its relative size and risk profile, in order to ensure compliance with minimum regulatory capital requirements set by the National Association of Insurance Commissioners. When referred to as “combined,” represents that of our insurance subsidiaries as a whole. The reporting of our combined risk-based capital ratio is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260223038901/en/

FOR INVESTORS
Dana Amante

(980) 949-3073

damante@brighthousefinancial.com

FOR MEDIA
Meghan Lantier

(980) 949-4142

mlantier@brighthousefinancial.com

Source: Brighthouse Financial, Inc.

The post Brighthouse Financial Announces Fourth Quarter and Full Year 2025 Results appeared first on Insurance News | InsuranceNewsNet.

Rep. Mike Thompson is a homegrown politician seeking his 15th consecutive term in the U.S. House of Representatives, following eight years in the California Legislature. His most formidable Democratic primary challenger for California’s 4th Congressional District, Eric Jones, is a political neophyte and recent Napa transplant trying to build name recognition.

For two candidates in the same political party, they could scarcely present a starker contrast. And the same can be said of their campaign financing.

Thompson, 75, who has been building political bridges as long as Jones, 35, has been alive, draws reliably heavy support from political action committees, big industry players and the local wine business.

Jones’ campaign is largely financed by people working in venture capital, tech, private equity, hedge funds and other forms of finance. He used to work in venture capital.

Both sides see something nefarious in their opponent’s fundraising.

Jones is quick to note that his campaign money comes entirely from individual donations; he doesn’t take a dime from PACs, corporations or lobbyists, he said. Thompson relies heavily on more traditional funding streams, which Jones characterizes as an open door to influence peddling.

Thompson has been less vocal about Jones’ financing. But his supporters have been questioning the challenger’s reliance on money flooding in from outside the sprawling district, which now, under the state’s reshuffled electoral map, includes Napa, Yolo, Colusa, Sutter and Yuba counties, and parts of Sonoma, Lake, Sacramento and Placer. The district, with a far larger number of registered Democrats, is expected to vote solidly blue.

Clean money vs. corporate strings. County sheriffs vs. financiers. Retirees in St. Helena vs. AI software engineers in San Francisco vs. Washington lobbyists. If you have a political bone to pick, you are likely to find fault somewhere in the 4th District campaign financing.

One thing is clear from the public records: Thompson, who has never in his political career lost an election, is in for a rare fight. Jones outraised him in 2025, roughly $2.6 million to $2 million – a stunning deficit for a veteran congressman who has never received less than 61% of the vote in either a primary or general election.

The figures represent only dollars sent directly into the two campaigns. They do not include money spent on behalf of candidates by fundraising committees such as super PACs.

“I don’t know if Mike’s team is running scared. But they’re running concerned,” said David McCuan, a political science professor at Sonoma State University. “The Jones team is running this in a more sophisticated way than previous millionaire campaigns.”

Among the 45 California congress members running for reelection in districts they were already representing, only two were losing the financing battle through September. Thompson was one. The other was Republican Darrell Issa, who was narrowly outfunded by Democratic challenger Brandon Riker in the 48th District.

A third Democratic candidate in the 4th District race, Trevor Merrell, 25, of Rohnert Park, hadn’t raised any campaign money by Sept. 30, according to Federal Election Commission data.

Here’s a look at the campaign financing of the Thompson and Jones campaigns, and where they diverge.

DIFFERENT PATHS TO CASH The candidates got to their fundraising figures very differently.

Thompson had a higher number of donors who gave far less per person. Jones capitalized on larger contributions from a smaller pool of contributors.

The average payment to Eric Jones’ campaign in 2025 was more than $3,300. The average contribution made to Thompson’s campaign was about $465. More than 240 people donated $7,000, the maximum individual contribution per cycle. For Thompson, only 43 people gave that amount.

To 4th District residents suspicious of Jones’ rapid emergence on the political scene – and there are many – these numbers signal a reliance on households with deep pockets, and a lack of grassroots support.

And among the deepest pockets funding Jones run are his own. Jones has so far donated just under $364,000 to his campaign, about 14.5% of his total haul. His parents, who live in Florida, donated $14,000.

Thompson had more than five times as many donors as his opponent. Many were Napa County residents of modest means, sending checks for $50 or $100. Those don’t pay for a lot of campaign ads, but they have reliably translated into votes for Thompson, a moder- ate Democrat who has taken the lead on issues including gun safety, health care and veterans rights.

Jones, who is challenging Thompson from the left while advocating for universal child care and workforce housing, claimed to be undaunted at the local disparity.

“Congressman Thompson has more individual donors than we do, but he’s been campaigning since January,” the challenger noted in an interview. “I would predict we pass him in donor count as well.”

LEADER OF THE PACS Political action committees, or PACs, are tax-exempt organizations that pool campaign contributions from members and donate that money to campaigns, ballot initiatives or legislative efforts.

They are the engine that drives election spending in America. And Thompson is highly tapped in, as many national office holders are.

While Jones has vowed not to accept money from PACs, Thompson has raked in close to $1 million from them so far.

Those contributions include $12,500 from the Blue Dog Victory Fund, which supports moderate, fiscally oriented Democrats. He also got $5,000 each from the likes of PAC to the Future, affiliated with House Speaker Emerita and Democratic kingmaker Nancy Pelosi; Jobs, Education & Families First Jeff PAC, affiliated with Democratic House leader Hakeem Jeffries; Fair Shot PAC, dedicated to flipping seats blue; KidsPAC, which supports legislation friendly to children; and Medicare for All PAC.

CAPTAINS OF INDUSTRY There are five categories of PACs, though, and some of them have little to do with party politics. Some are sponsored by particular commercial sectors or individual businesses.

These are Thompson’s bread and butter.

His top contributors in 2025 included First Foundation Bank ($15,148), the Tractor Supply Co. PAC ($10,000), the American Crystal Sugar Co. PAC ($10,000) and Edison International PAC ($9,000).

The congressman also received thousands of dollars from trade lobbyists including the American Hospital Association, the American Council of Life Insurers, the National Beer Wholesalers Association, the American Hotel and Lodging Association, the American Bankers Association, the California Rice Industry Association and the Solar Energy Industries Association.

Meanwhile, the list of dedicated corporate PACs donating to Thompson reads like a lineup of Super Bowl advertisers: AFLAC. The Travelers Companies. Principal Life Insurance. Phillips 66. Prudential Financial. United Parcel Service. Verizon Communications. Northwest Mutual.

Jones has made it a central point of attack.

“It signals influence,” he said. “And particularly legislative influence. Because the corporations, in concert with lobbying groups, actually draft and present legislation to members of Congress. Who then run with it to pass laws.”

Jones highlighted President Donald Trump’s military abduction of Venezuelan President Nicolás Maduro and the seizing of ships laden with oil from that country. Those actions were “highly coordinated” with the oil and gas industry, Jones said.

“That industry is a significant donor to Thompson’s campaign,” he continued, “and like others who received that money, he voted to support the National Defense Authorization Act on Dec. 17which needed Democratic votes to pass.” The act authorized a record $900 billion for defense spending.

That characterization fails to give Thompson the grace to believe he can filter out influencers, McCuan argued. Thompson, a Vietnam War combat veteran who sits on the powerful House Ways & Means Committee, has emerged as a staunch critic of the Trump administration, especially on immigration enforcement and erosion of Medicare benefits.

“Jones is taking the leap of saying there is a quid pro quo,” McCuan said. “That’s just not how it works. Do these entities get access to members they give money to? Sure. But what you do is take that money and tell them no.”

$70,000 FROM THE OFFICE POOL Jones didn’t receive a $5,000 donation from the Morgan Stanley PAC, as Thompson did. But he got $7,000 from Colin Stewart, an investment banker at the financial services firm.

However you might interpret that distinction, high-placed individual donors are driving Jones’ campaign so far. Most prominent are the venture capitalists.

Jones worked in that sector until July, and walked away with a small fortune. For the most part, he worked at Dragoneer Investment Group, based in San Francisco. It’s nice to leave an office on good terms.

At least eight current Dragoneer executives contributed $7,000 each to Jones’ campaign, as did two of their spouses.

And Jones’ VC support goes way beyond that.

Some donors are kind enough when filing campaign donations to list their occupation as “venture capitalist.” It can be harder to parse, but a Press Democrat analysis revealed at least 60 people working in venture capital who gave to Jones’campaign. Three of the top 10 firms in Time magazine’s 2025 ranking – Accel, Andreessen Horowitz and Kleiner Perkinsare represented by individuals on the candidate’s financial disclosures.

A slightly smaller pool of tech executives donated to the challenger – including some affiliated with familiar brands such as Cisco, Meta and Apple, but also people working in things like “decision intelligence” and “AI connectivity.”

Jones also drew strong support from high-ranking employees in private equity, hedge fund management and conventional finance.

McCuan expected the challenger to “democratize” his donors in the fourth quarter of 2025.

“He hasn’t really,” the professor said. “He stepped on the gas for his private equity, venture capital line. It’s JD Vance Land. It’s a lot of Republicans.”

Jones expressed puzzlement at the accusations over his funding streams, pointing out that he has been able to tap into an “overlapping network” of campaign money established by Ro Khanna and Sam Liccardo, a pair of progressive South Bay Democrats who have proved to be able fundraisers.

Ultimately, Jones doesn’t believe it will matter much to 4th District voters.

“What people in Yuba City care about is how to improve affordability, how to get effective government, how to actually bring health care to the district and how do we help education, because they have school closures,” he said. “Funding is not really on top of their mind.”

FROM YOUNTVILLE TO YUBA CITY If there’s a central complaint voiced by Thompson loyalists, it’s that Jones has tenuous ties to his district – and receives very little local money.

In the challenger’s first finance report, filed Sept. 30, only six of his nearly 450 donors claimed addresses in the 4th District. His fourth-quarter filings bumped up that number, but not hugely. The money Jones is getting from Napa-Yolo-Colusa-Yuba is vastly outweighed by his money from San Francisco, his home base until he relocated to Napa in 2021.

Compare that mix with Thompson’s: 63% of the donations the incumbent received in 2025 came from within the redrawn district, which was shifted a little south and farther to the east.

“We’re proud of Mike’s strong grassroots support,” his campaign adviser, Thomas Dowling, wrote in an email. “As someone who was born, grew up, and still lives in the 4th District, Mike understands our community’s needs firsthand and he is working every day to address our community’s challenges.”

Thompson declined an interview for this story, through Dowling.

The congressman’s support isn’t limited to kitchen tables. He draws plenty of money from local business – and especially the wine industry, which he has fiercely championed in his more than 27 years on Capitol Hill.

The Press Democrat counted well over 60 wine producers who have donated to his 2026 campaign, either as a business or through ownership or top executives. The large majority are in Napa Valley.

They include some of the industry’s heavy hitters, like Jackson Family Wines, Korbel, Trinchero Family Estates (five of the company’s leaders pooled a total of close to $15,000), Beringer Wine Estates, Niebaum Coppola, Robert Mondavi Winery, Dutton Ranch, Hall Wines and Silver Oak Cellars.

The Wine Institute, which advocates statewide for public policy friendly to the industry, sent Thompson $10,000. So did Constellation Brands, one of the global giants.

SHARE AND SHARE ALIKE One of the peculiarities of the American political system is that the money contributed to help one campaign often winds up in the hands of another, or in the service of local causes. It’s another process Thompson has learned to navigate capably.

He received 17 donations directly from other campaigns, including those of Napa County Supervisor Liz Alessio, Sonoma County Supervisor Rebecca Hermosillo, state Assembly members Cecelia Aguiar-Curry and Chris Rogers, and Reps. John Garamendi of California and Marilyn Strickland of Washington.

The individual donations flowing to Thompson reveal a tightly interconnected web of local pols, many of whom have a record of endorsing one another – and of endorsing Thompson, dean of North Bay Democrats. He got money from Santa Rosa Mayor Mark Stapp, St. Helena Mayor Paul Dohring, Cotati Vice Mayor Sylvia Lemus, state Sen. Chris Cabaldon and City Council members Gerard Guidice of Rohnert Park, Ariel Kelley of Healdsburg, Beth Painter of Napa, and Jack Ding and John Gurney of Sonoma.

Four of five Napa County super- visors contributed to Thompson’s campaign.

And money moves in the other direction, too. Over his tenure, Thompson has donated more than $3.5 million to the Democratic Congressional Campaign Committee and Democratic presidential candidates, and has floated upward of $305,000 to local labor councils and local Democratic parties.

Jones shares in almost none of that swapping. He sent a $5,000 check to Napa County Supervisor Joelle Gallagher in September. She returned the money.

WHO’S WHO IN THE 4TH DISTRICT Beyond PACs and wine titans, Thompson counts as allies the type of community leaders you might expect to find in his camp after representing most of the region for decades.

That includes donations from at least 15 Indian tribes, including five based in Sonoma or Lake counties.

Other notables among Thompson’s benefactors: Santa Rosa philanthropists Jean Schulz and Connie Codding, Sonoma County District Attorney Carla Rodriguez, Napa developer George Altamura, Napa County Sheriff Oscar Ortiz, retired 49ers general manager Carmen Policy (who lives in St. Helena), Sonoma County Farm Bureau Executive Director Dayna Ghirardelli and Megan Chin, a chef/owner at the French Laundry restaurant.

Jones’ most well-known donors aren’t local. They are Steve Kerr, coach of the Golden State Warriors – and a member of the advisory board of the American Dream Institute, an organization Jones formed – and the Warriors’ general manager, Mike Dunleavy.

ONE KEY SIMILARITY The two men leading the charge for the Democratic nomination in the 4th District have veered in two highly divergent paths while stacking their campaign accounts. But they have wound up at practically the same place.

As 2026 began, Mike Thompson’s campaign had $1.9 million in cash on hand. Eric Jones’ had $1.8 million. It’s a race that is likely to remain hotly contested, and lucrative, into June – and because of California’s “top two” primary system, possibly until Election Day in November.

You can reach Phil Barber at 707-521-5263 or phil.barber@ pressdemocrat.com.

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