May 2026

HONG KONG–(BUSINESS WIRE)–
AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a+” (Excellent) to Tokio Marine Newa Insurance Co., Ltd. (TMNewa) (Taiwan). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect TMNewa’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also factor in the rating enhancement from its parent, Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF), which is the main insurance operating entity of Tokio Marine Holdings, Inc.

Established in 1999 by Yulon Group, a major automobile conglomerate in Taiwan, and later partnered with Tokio Marine Group, TMNewa is the fourth largest non-life insurer in Taiwan, with a 7.6% market share in 2025. TMNF is currently the controlling shareholder with a 50.18% stake, while Yulon Group has a collective shareholding of 49.48% via its subsidiaries, namely China Motor Co., Ltd., Yulon Motor Co., Ltd. and Yulon Finance Co., Ltd. Leveraging Yulon Group’s extensive network of car dealers, motor insurance is the largest product line in TMNewa’s underwriting book, constituting approximately 70% of gross premiums written in 2025, followed by other key products including commercial fire, casualty, and accident and health.

TMNewa’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), was assessed at the strongest level at year-end 2025, and is expected to further improve over the short to intermediate term. The company’s capital and surplus (C&S) has grown robustly through full profit retention, in addition to significant recovery from four rounds of material capital injections from shareholders in 2022 and 2023, after experiencing material underwriting loss from pandemic-related products. Other supporting factors include a conservative investment portfolio heavily weighted toward cash and high-quality fixed-income investments, financial flexibility from shareholders and supportive liquidity.

AM Best views TMNewa’s operating performance as adequate, as demonstrated by a track record of favourable operating performance, apart from a one-time underwriting loss in 2022. The company reported modest top-line growth in 2025, partially attributed to slower expansion in the major motor and commercial fire lines, following a period of double-digit expansion between 2022 and 2024. The return on equity (based on adjusted C&S) was 25.7% in 2025, supported by an improved net loss ratio, due to continued control over claims experience in two major product lines. The expense ratio benefits from the company’s sustained control over management expenses and commissions, along with the increased scale, and remains below the market average. The company’s investment portfolio continues to generate favourable results, supported by steady income streams from interest and dividend. Going forward, TMNewa is targeting profitable growth in non-motor business lines, including fire and liability insurance for small to medium-sized enterprises, while being disciplined on large commercial risks.

As a subsidiary of TMNF, the company receives various implicit support from TMNF, including management oversight, risk framework and governance, underwriting know-how, product development, investment and innovation.

Negative rating actions could occur if there is a material deterioration in TMNewa’s balance sheet strength assessment. Negative rating actions also could arise if there is a reduced level of support from the parent company, which may have a negative impact on TMNewa’s ratings. Although it is unlikely in the near term, positive rating actions could occur if TMNewa is able to achieve sustained improvement in its operating performance, while its balance sheet strength fundamentals remain robust.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260508631820/en/

Stephanie Mi

Senior Financial Analyst

+852 2827 3402

stephanie.mi@ambest.com

James Chan

Director, Analytics

+852 2827 3418

james.chan@ambest.com

Christopher Sharkey

Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Al Slavin

Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

Source: AM Best

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For decades, life insurance conversations followed a familiar sales template: Calculate the need, discuss the beneficiaries, and explain how the death benefit protects their loved ones “if something were to happen.” Sure, that method served many generations of advisors well, but for many independent advisors today, it no longer reflects how consumers think about risk, money and their future.

There is a quiet shift underway. Life insurance is increasingly being positioned, not solely as a death benefit, but as a living financial strategy. A strategy that provides flexibility, options and protection while clients are living. Advisors who recognize and adapt to this trend are finding stronger client relationships with deeper engagement and more sustainable planning outcomes.

Why the death benefit approach is losing influence

Today’s consumers have shifted focus to their immediate needs and put their legacy-building plans on the back burner. Rising healthcare costs, market volatility, longevity risk and unpredictable incomes are shaping financial decisions; not concerns about a premature death.

When our insurance conversations focus on death and dying, clients tune out. Our message feels distant or fear-based. Advisors who rely on trust and relationships rather than a transaction are surprisingly the first to see resistance from the consumer.

Life insurance still has relevance, but how we frame it must evolve.

Life insurance = Living asset

Life insurance is one of the most adaptable financial instruments out there. Holistically speaking, it offers several living benefits that resonate with today’s consumer.

• Access to liquidity: Does not require timing the market
• Optionality: As life’s circumstances change
• Insurability protection: Before health and age become a factor
• Risk management: Beyond death benefit protection, including longevity and healthcare risks

For advisors, using a broader lens allows life insurance to sit comfortably alongside investment management, retirement planning and cash-flow strategies – rather than in a separate category alone.

Control over certainty

Everyone can agree that the future is unpredictable. Consumers do not want certainty; they want control.

Life insurance, when it is positioned properly, can be a tool that supports control. It offers:

• A buffer against adverse health events
• A flexible asset that can adapt as incomes change
• A private source of capital during market downturns
• A stabilizer during economic uncertainty

When the advisor moves the conversation from “What happens when you die?” to “How do you want your finances to respond during life events?” consumer engagement increases significantly.

How to shift the conversation

Independent advisors have an advantage: they are not tied to a single product or sales template. This freedom provides access to broader planning discussions instead of positioning it as a single decision.

A successful advisor repositions insurance in three ways.

1. From “How much coverage do you need?” to:
   1. What happens if you live longer than expected?
   2. How will you handle healthcare costs if the markets underperform?
   3. Where will your liquidity come from if your income changes?
2. From product mechanics to financial outcomes:
   1. Clients don’t need to understand every policy detail.
   2. Clients want clarity
   3. Present access, flexibility, protection
3. From fear-based to value-based:
   1. Steer clear of talking about worst-case scenarios
   2. Focus on adaptability, resilience and long-term confidence

Market differentiation is critical

The marketplace is crowded, and this is where differentiation is critical. Investment performance alone is no longer a value-add. Planning depth and the ability to manage non-market risks are defining factors in client retention and referrals.

When positioned as a living strategy, life insurance strengthens the advisor’s role as a comprehensive planner. It creates continuity across generations, business transitions and life stages.

Takeaways for advisors

Advisors can adapt to this shift by making small but meaningful changes.

• Change the opening question: Ask the client how they want their financial plan to respond rather than how much coverage they think they need.
• Integrate: Position life insurance as a component of cash-flow, retirement and risk management.
• Use real-life scenarios: Base conversations on events clients are already concerned about: health, market uncertainty, and longevity.
• Focus on optionality: Emphasize flexibility and control.

Life insurance has not really changed that much. What has changed is how consumers view risk. An advisor who can adapt their messaging to reflect today’s reality redefines how life insurance fits into modern financial planning.

This quiet shift is not abandoning the death benefit – it is expanding the conversation. For advisors, this shift may be one of the most powerful tools available to deepen relationships for many years to come.

© 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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Life insurers continue to record strong earnings and stronger annuity sales in 2026.

Several industry leaders reported first-quarter financials on Wednesday and Thursday, led by Prudential Financial, Jackson Financial, and Lincoln Financial.

Here is a roundup of those calls:

Prudential Financial earnings

Prudential posted stronger first-quarter earnings Wednesday, driven by solid insurance and retirement performance, even as the insurer continued to grapple with fallout from compliance problems in Japan.

CEO Andy Sullivan said the company is seeing “tangible evidence of stronger execution” across the enterprise despite the unexpected disruption in Japan.

The insurer recently announced that Prudential of Japan is not ready to resume sales after a 90-day ban following widespread misconduct. Prudential extended the sales moratorium for another 180 days, for a total financial impact of about $1 billion.

POJ announced actions to address the misconduct, including measures to reimburse impacted customers, restructure employee incentive compensation, and strengthen oversight of sales practices, governance, and risk management. The plans also include enhanced education, training and recruitment standards for POJ employees.

The Japan market is “unique,” Sullivan said, with “specialized access to teachers and the service defense forces across Japan and literally is in every geography across Japan with 7,000 agents.”

Prudential’s U.S. businesses generated about $1 billion in pretax adjusted operating income, up 3% year over year. Retirement earnings climbed 9% to more than $570 million, helped by strong spread income and continued momentum in retail annuities and pension risk transfer deals.

Group insurance earnings fell sharply, however, to $38 million from $89 million a year earlier. Executives cited higher disability claims incidence and severity tied to macroeconomic uncertainty, partially offset by favorable mortality trends in group life insurance.

Individual life earnings more than doubled to $139 million, aided by improved mortality experience and higher spread income.

International operations remained under pressure from the ongoing Prudential of Japan sales suspension. International pretax adjusted operating income slipped 4% to $810 million as the company absorbed roughly $130 million in costs tied to customer reimbursements, life planner compensation and lost sales.

Jackson Financial earnings

Jackson Financial reported strong first-quarter insurance results as growth in spread-based products and registered index-linked annuities offset market volatility and weaker fee income.

President and CEO Laura Prieskorn said the company benefited from strong demand for retirement income and protection products, particularly its registered index-linked annuities and fixed indexed annuities.

Retail annuity sales increased 31% from a year earlier to $5.3 billion. RILA sales rose 68% to $2 billion, while fixed and fixed indexed annuity sales jumped to $756 million from $174 million a year earlier.

Jackson said spread-based products accounted for 52% of total sales during the quarter, reflecting its ongoing effort to diversify beyond traditional variable annuities. The company said nearly 40% of account values now come from spread-based and investment-only variable annuity products.

Variable annuity sales (excluding certain internal exchanges) of $2.5 billion were down 6% from the first quarter of 2025, primarily reflecting lower sales of products with lifetime benefits.

Chief Financial Officer Don Cummings said the insurer’s investment portfolio remains conservatively positioned despite increased allocations to higher-yielding assets through its partnership with TPG.

“We continue to maintain our disciplined investment approach,” Prieskorn said.

Jackson maintained its full-year 2026 target of at least $1.2 billion in free capital generation and projected capital returns to shareholders of $900 million to $1.1 billion.

Lincoln Financial earnings

Lincoln Financial reported strong first-quarter earnings growth as improvements in its insurance businesses and disciplined capital management continued to bolster results.

The company said adjusted operating income rose 16% from a year earlier, marking its seventh consecutive quarter of year-over-year growth. President and CEO Ellen Cooper said the results reflected years of efforts to strengthen the balance sheet, improve efficiency and shift toward products with steadier cash flows and lower market sensitivity.

“Lincoln has a differentiated set of competitive advantages,” Cooper said, “a diversified franchise across four businesses, each at a different stage of its realignment toward our financial and strategic objectives, a deep distribution platform that we are actively expanding and optimizing, and capabilities tailored to each of the markets we serve.”

Insurance operations were a key driver of performance. Group protection earnings climbed 11% to $112 million, helped by favorable underwriting results in group life insurance and continued margin expansion. The business posted an 8% margin, up 60 basis points from a year ago.

Lincoln’s life insurance segment also improved sharply, generating $41 million in operating income compared with a $16 million loss a year earlier. Sales rose more than 30% to $129 million, fueled by growth in core life products and executive benefits.

Demand was especially strong for accumulation-focused and limited-guarantee products, areas the company has prioritized in recent years, Cooper said.

Chief Financial Officer Christopher Neczypor said favorable mortality trends and strong alternative investment returns also supported results.

Annuity earnings slipped modestly to $275 million as Lincoln continued repositioning the business toward spread-based products such as fixed indexed annuities. Retirement plan services earnings increased 26%.

By The Numbers: Prudential

• Operating Income: $1.6 billion ($1.5 billion in Q1 2025)
• Net Income: $597 million ($707 million in Q1 2025)
• Earnings Per Share: $1.68 per share ($1.96 in Q1 2025)
• Share Repurchases: $250 million in Q1 2026
• Dividend Declared: $496 million in Q1 2026
• Stock Price Movement: Shares dipped slightly at midday Thursday to $99.58

By The Numbers: Jackson

• Operating Earnings: $361 million ($376 million Q1 2025)
• Net Income: -$435 million (-$35 million in Q1 2025)
• Earnings Per Share: -$6.24 per share (-0.48 in Q1 2025)
• Share Repurchases: $192 million in Q1 2026
• Dividend Declared: $65 million in Q1 2026
• Stock Price Movement: Shares declined about 1.8% as of midday Thursday to $112.79

By The Numbers: Lincoln

• Total Revenue: $5.3 billion ($4.7 billion in Q1 2025)
• Net Income: -$211 million (-$756 million in Q1 2025)
• Earnings Per Share: -$1.10 per diluted share (-$4.41 in Q1 2025)
• Share Repurchases: None
• Dividend Declared: $0.45 per share
• Stock Price Movement: Shares down 3.3% to $36.39 on midday Thursday

© 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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When you open a retirement account or buy a life insurance policy, you’re asked to name a beneficiary. It might seem like just another form to fill out, but this simple step can affect your family’s future.

Many people don’t give beneficiary designations much thought after signing the initial paperwork. It may have been years ago, and life has moved on. But this might surprise you: These designations can override what’s in your will or living trust. That means your retirement accounts and insurance proceeds could end up going to someone you didn’t intend, creating what professionals call an accidental inheritance.

Life changes quickly. You might get married, divorced or remarried. You might have children or stepchildren. A loved one might pass away. You may decide to give to your favorite charity. Any of these events could mean it’s time to update your beneficiaries.

The rules can get complicated. For example, after a divorce, some (but not all) states have laws that automatically revoke your beneficiary designations for individual retirement arrangements (IRA), bank accounts and insurance policies.

But no matter where you live in the U.S., the designations for 401(k) plans and pensions stay in place until you change them. In community property states, couples must split 50-50 the assets they acquired during marriage, adding another layer of complexity.

There are other considerations, too. It’s a good idea to name a primary and a contingent beneficiary. If your primary beneficiary dies before you do, the contingent beneficiary receives your assets. Without this backup plan, your carefully considered wishes could go awry.

Naming minor children as direct beneficiaries isn’t usually a good idea. Children can’t legally receive and control assets until they become adults, so a court would have to get involved and appoint a guardian for managing the money. Instead, you might set up a trust or name a custodian to oversee the funds until your children are mature enough to handle them responsibly.

For family members with special needs, you’ll want to be especially careful about choosing your beneficiary. Some choices may jeopardize their eligibility to receive government benefits such as government disability payments or Medicaid. An estate attorney can help you make important beneficiary decisions.

One major benefit of proper beneficiary designations is that they can help your loved ones avoid probate, a time-consuming and potentially expensive legal process.

For these reasons and others, it’s important to review your beneficiary designations regularly, especially after major life events. Contact your retirement account administrator or insurance company to update any outdated information.

A financial advisor can help you understand how your beneficiary choices fit into your financial strategy and ensure your assets go where you want them to go. It may also make sense to work with a legal professional who can help you ensure your beneficiary designations align with your plans for transferring your estate assets.

Don’t leave these important decisions to chance. Taking time now to review and update your beneficiaries can help give you a sense of security and protect the people you love.

Ruthie Dixon is a financial advisor at Edward Jones in Virginia. She can be contacted at 218-749-4031 or Ruthie.Dixon@edwardjones.com. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

This article is sponsored by Edward Jones. Sponsored articles are submitted by advertisers. The advertiser is solely responsible for the content of this article.

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As life insurers toast another quarter of strong sales, executives are also eyeing the elephant in the room: a looming Equitable-Corebridge powerhouse.

The blockbuster merger, expected to close by the end of 2026, came up during multiple calls this week with Wall Street analysts. Corebridge ($27.4 billion) and Equitable ($23.3 billion) combined for more than $50 billion in 2025 annuity sales, with Corebridge finishing third and Equitable fourth in LIMRA’s final sales rankings.

Not surprisingly, competitors stressed their own strengths and scale in the market. Ellen Cooper, president and CEO of Lincoln Financial Group, recalled the decision, made two years ago, to sell Osaic, Lincoln’s wealth management business.

“That was a business for us that we didn’t have scale,” Cooper said Thursday morning. “Scale is clearly a factor, and we have scale in our businesses. We know that we have a real competitive advantage as it relates to our distribution and proven track record of pivoting, and we’re doing that all across the platform.”

During a Wednesday analyst call, Jackson Financial chief financial officer Don Cummings highlighted the steps the insurer has taken in recent years to strengthen and streamline the business. Jackson is “well-positioned” to compete with the new Equitable, he added.

“We already have a pretty comprehensive product suite, and we also happen to have one of the largest distribution forces in our space,” Cummings said. “Our wholesaler group has been quite effective over the last several years, and we’re expanding this year.”

‘Irrational competition’

Also on Wednesday, Apollo Global Management briefed analysts on quarterly results, with subsidiary Athene once again taking center stage after leading LIMRA’s annuity sales rankings for a third consecutive year and continuing to deliver a major share of Apollo’s earnings.

Apollo CEO Marc Rowan said the industry is seeing some “irrational competition,” or annuity competitors “putting business on the books at ridiculously low spreads.”

Annuity sellers will often enter the market by undercutting established insurers with attractive rates. Cooper said Lincoln is seeing the practice as well.

“We know that there are certain pockets of the annuity product segments where it’s a pure price competition play,” she said. “One of those examples at the moment is multi-year guaranteed annuities, and we see pockets of this. There are pockets of this on the registered index-linked annuities side as well.”

Both Rowan and Cooper said their companies are selling annuities responsibly with the bigger picture in mind.

“We are not focused on top-line growth,” Cooper said. “We are focused on balancing growth with profitability, with capital efficiency as we continue to grow here, and we’re leveraging the strength of our distribution franchise to pivot across products.”

Critics contend that private equity-backed insurers such as Athene are leaning too heavily into higher-yielding, riskier assets such as private credit — potentially exposing policyholder funds to greater risk. Rowan pushed back on that narrative once again.

“What we are doing is totally transparent; no guesswork is required,” Rowan said. “I don’t know of any other insurer or any other financial institution that puts out the kind of data that we do, whether it is liability data or granular data on our asset portfolio.”

© 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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RADNOR, Pa.–(BUSINESS WIRE)–
Lincoln Financial (NYSE: LNC) today reported financial results for the first quarter ended March 31, 2026.

• Sustained progress against strategic and financial objectives drove solid first quarter performance.
• First quarter net loss available to common stockholders was $(211) million, or $(1.10) per diluted share.
• First quarter adjusted operating income available to common stockholders was $326 million, or $1.66 per diluted share.
  • The difference between net income and adjusted operating income was primarily attributable to the non-economic impact of changes in market risk benefits.
• Holding company available liquidity increased to $805 million, net of prefunding amounts.

  

“Our first quarter results reflect continued disciplined execution and consistent, meaningful progress against our strategic priorities,” said Ellen Cooper, Chairman, President and CEO of Lincoln Financial. “Group Protection delivered record first quarter earnings, while Life Insurance and Retirement Plan Services generated strong earnings growth. In Annuities, we achieved another quarter of diversification in new business with a more balanced mix and less market sensitivity.

“The cumulative impact of the actions we’ve taken — strengthening our capital foundation, optimizing our operating model, and diversifying our business mix — are translating into a more resilient, higher-quality earnings profile. We remain focused on advancing these priorities to further build on this trajectory and create sustainable, long-term value for shareholders.”

Business Highlights

Our 2026 first quarter performance represents sustained, company-wide progress against our strategic and financial objectives.

Retail Solutions

• Annuities delivered operating income of $275 million, down 5% compared to the prior-year quarter, driven by the impact of the previously disclosed net investment income allocation refinement and unfavorable tax-related items. Adjusting for these items, operating income was up 1%, driven by favorable equity markets and growth in spread income, offset by variable annuity outflows. Annuities recorded $169 billion in ending account balances, net of reinsurance, and sales of $3.9 billion, up 4% year over year. Spread-based products accounted for approximately two-thirds of total sales in the quarter, reflecting our continued strategic shift towards spread-based business.
• Life Insurance delivered operating income of $41 million, a $57 million increase from the prior-year quarter, driven by strong alternative investment income and the impact of the fourth quarter 2025 captive consolidation. Annualized consolidated alternative investment income returns were approximately 12.3%, which is more than 2% higher than our annual target. Total sales were $129 million, up 33% compared to the prior-year quarter, reflecting sales growth across all product lines, most notably in Executive Benefits.

Workplace Solutions

• Group Protection delivered operating income of $112 million, compared to $101 million in the prior-year quarter, driven by favorable life experience. Premiums were 2% higher year over year, as strong sales over the prior twelve months were partially offset by a large case lapse. Adjusting for the large case lapse, premiums were up 3.4% compared to the first quarter of 2025. Sales of $150 million were 4% lower year over year and demonstrated a disciplined approach to balanced growth in the segment.
• Retirement Plan Services reported operating income of $43 million in the quarter, up 26% year over year, driven by spread expansion and favorable equity markets, partially offset by trailing-twelve-month outflows. Net outflows were $0.2 billion, compared to $2.2 billion in the prior-year quarter. Total deposits were $4.1 billion in the quarter, up 1% over the prior-year quarter, with first-year sales of $1.1 billion, up 3% year over year.

Earnings Summary

Reconciliation of Net Income (Loss) to Adjusted Income (Loss) from Operations⁽¹⁾

Variable Investment Income

Items Impacting Segment and Other Operations Results

Capital and Liquidity

Annuities

• Income from operations was $275 million for the first quarter, compared to $290 million in the prior-year quarter, driven by the impact of the previously disclosed net investment income allocation refinement and unfavorable tax-related items. Adjusting for these items, operating income was up 1%, driven by favorable equity markets and growth in spread income, offset by variable annuity outflows.
• Total sales were $3.9 billion in the quarter, increasing 4% compared to the prior year. Spread-based products comprised nearly two-thirds of total sales.
• Net outflows were approximately $2.2 billion in the quarter, compared to net outflows of $1.7 billion in the prior-year quarter, primarily driven by traditional variable annuities.
• Average account balances, net of reinsurance, were $175 billion. The year-over-year increase of 7% was driven by growth across all product lines.

Life Insurance

• Income from operations was $41 million, compared to a loss of $16 million in the prior-year quarter. The year-over-year improvement was driven by strong alternative investment income and the impact of the fourth quarter 2025 captive consolidation.
• Total sales were $129 million, up 33% compared to the prior-year quarter, as sales of accumulation products continued to drive growth, most notably in Executive Benefits.
• Average account balances, net of reinsurance, were $49 billion, up 11% versus the prior-year quarter.

Group Protection

• Income from operations was $112 million in the quarter, 11% higher than the prior-year quarter driven by favorable life experience.
• Operating margin was 8.0%, 60 basis points higher than the prior-year quarter, and the total loss ratio decreased 130 basis points to 71.1%, driven by favorable life experience partially offset by unfavorable disability severity.
• Insurance premiums were $1.4 billion in the quarter, increasing 2% year over year, driven by strong sales over the past twelve months. Adjusting for a large case lapse, premiums were up 3.4% compared to the first quarter of 2025.
• Sales decreased 4% year over year, demonstrating a disciplined approach to balanced growth in the segment.

Retirement Plan Services

• Income from operations was $43 million in the quarter, up 26% compared to the prior year, primarily resulting from spread expansion and favorable equity markets, partially offset by outflows.
• Net outflows were $0.2 billion, compared to $2.2 billion of net outflows in the prior-year quarter.
• Total deposits were $4.1 billion, up 1% over the prior-year quarter. First-year sales of $1.1 billion were up 3% year over year.
• Average account balances were $125 billion, increasing 10% from the prior year, driven by favorable equity markets.

Other Operations

Unrealized Gains and Losses

The company reported a net unrealized loss of $9.1 billion (pre-tax) on its available-for-sale securities as of March 31, 2026, compared to a net unrealized loss of $9.4 billion (pre-tax) as of March 31, 2025. The year-over-year decrease was primarily due to tighter spreads.

The tables attached to this release define and reconcile the non-GAAP measures adjusted income (loss) from operations, adjusted income (loss) from operations available to common stockholders, book value per share excluding AOCI, and adjusted book value per share to net income (loss), net income (loss) available to common stockholders, and book value per share including AOCI, calculated in accordance with GAAP.

This press release contains statements that are forward-looking, and actual results may differ materially. Please see the Forward-looking Statements – Cautionary Language at the end of this release for factors that may cause actual results to differ materially from the company’s current expectations.

For other financial information, please refer to the company’s first quarter 2026 statistical supplement and first quarter 2026 earnings supplement, which are available in the investor relations section of its website http://www.lincolnfinancial.com/investor.

Conference Call Information

Lincoln Financial will discuss the company’s first quarter results with the investment community in a call beginning at 8:00 a.m. Eastern Time on Thursday, May 7, 2026.

The call will be broadcast live through the company’s website at www.lincolnfinancial.com/webcast. Please log on to the webcast at least 15 minutes prior to the start of the call to download and install any necessary streaming media software. A replay of the call will be available by 10:30 a.m. Eastern Time on May 7, 2026, at www.lincolnfinancial.com/webcast.

About Lincoln Financial

Lincoln Financial helps people confidently plan for their vision of a successful financial future. As of December 31, 2025, approximately 17 million customers trust our guidance and solutions across four core businesses – annuities, life insurance, group protection, and retirement plan services. As of March 31, 2026, the company had $340 billion in end-of-period account balances, net of reinsurance. Headquartered in Radnor, PA., Lincoln Financial is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. Learn more at LincolnFinancial.com.

Non-GAAP Measures

Management believes that the use of the non-GAAP financial measures adjusted income (loss) from operations, adjusted income (loss) from operations available to common stockholders (or adjusted operating income (loss)) and adjusted income (loss) from operations per diluted share available to common stockholders is helpful to investors in evaluating the company’s performance.

Management believes that excluding the following items from adjusted income (loss) from operations enhances understanding of the underlying trends and long-term performance of the company’s business. Management excludes “net annuity product features” as this adjustment primarily represents the difference between the valuation of reserves and the valuation of derivatives utilized for hedging our variable annuity and indexed annuity products, which can fluctuate significantly from period to period based on changes in equity markets and interest rates. This difference is due to the hedge focus on managing risks to statutory capital as opposed to the GAAP reserves. Management excludes “net life insurance product features” for similar reasons. In addition, management excludes “credit loss-related adjustments” and “investment gains (losses)” as the timing of changes in allowances or sales of credit-impaired investments depends largely on market credit cycles and can vary considerably from period to period and the timing of other sales of investments that would result in gains or losses is driven by market conditions, including interest rates, and other factors. Management excludes “changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans” as this adjustment represents the economics of investments in underlying funds withheld portfolios supporting reinsurance agreements that have been transferred to third-party reinsurers, which is not indicative of our ongoing results.

Finally, management excludes from adjusted income (loss) from operations certain additional items (as set forth in the definition below) that are not necessarily indicative of current operating fundamentals or future performance of the business segments, and, in most instances, decisions regarding these items do not necessarily relate to the operations of the individual segments. Management believes excluding these items better explains the results of the company’s ongoing businesses in a manner that allows for enhanced understanding of underlying trends, company performance and business fundamentals.

Management also believes that the use of the non-GAAP financial measures book value per share, excluding accumulated other comprehensive income (“AOCI”), and adjusted book value per share enables investors to analyze the amount of our net worth that is attributable to our business operations. Book value per share, excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Adjusted book value per share is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in equity markets and interest rates.

For the historical periods, reconciliations of non-GAAP measures used in this press release to the most directly comparable GAAP measure may be included in this Appendix to the press release and/or are included in the Statistical Supplements for the corresponding periods contained in the Earnings section of the Investor Relations page on our website: http://www.lincolnfinancial.com/investor.

Definitions of Non-GAAP Measures Used in this Press Release

Adjusted income (loss) from operations, adjusted income (loss) from operations available to common stockholders, book value per share, excluding AOCI, and adjusted book value per share, as used in the press release, are non-GAAP financial measures and do not replace GAAP net income (loss), net income (loss) available to common stockholders, and book value per share, including AOCI, the most directly comparable GAAP measures.

Adjusted Income (Loss) from Operations

Adjusted income (loss) from operations is GAAP net income (loss) excluding the following items, as applicable:

• Items related to annuity product features, which include changes in market risk benefits (“MRBs”), changes in the fair value of the related hedge instruments inclusive of income allocated to support the cost of hedging or future benefits, and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products (collectively, “net annuity product features”);
• Items related to life insurance product features, which include changes in the fair value of derivatives we hold as part of VUL hedging, changes in reserves resulting from benefit ratio unlocking associated with the impact of capital markets, and changes in the fair value of the embedded derivative liabilities of our IUL contracts and the associated index options we hold to hedge them (collectively, “net life insurance product features”);
• Credit loss-related adjustments on fixed maturity AFS securities, mortgage loans on real estate and reinsurance-related assets (“credit loss-related adjustments”);
• Changes in the fair value of equity securities and certain other investments, the impact of certain derivatives, and realized gains (losses) on sales, disposals and impairments of financial assets (collectively, “investment gains (losses)”);
• Changes in the fair value of reinsurance-related embedded derivatives, trading securities and mortgage loans on real estate electing the fair value option (“changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans”);
• Income (loss) from the initial adoption of new accounting standards, accounting policy changes and new regulations, including changes in tax law;
• Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;
• Losses from the impairment of intangible assets and gains (losses) on other non-financial assets;
• Income (loss) from discontinued operations;
• Other items, which include the following: certain legal and regulatory accruals; severance expense related to initiatives that realign the workforce; transaction, integration and other costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business, and certain other corporate initiatives; mark-to-market adjustment related to the LNC stock component of our deferred compensation plans (“deferred compensation mark-to-market adjustment”); gains (losses) on modification or early extinguishment of debt; and impacts from settlement or curtailment of defined benefit obligations; and
• Income tax benefit (expense) related to the above pre-tax items, including the effect of tax adjustments such as changes to deferred tax valuation allowances.

Adjusted Income (Loss) from Operations Available to Common Stockholders

Adjusted income (loss) from operations available to common stockholders is defined as after-tax adjusted income (loss) from operations less preferred stock dividends.

Book Value Per Share, Excluding AOCI

Book value per share, excluding AOCI, is calculated based upon a non-GAAP financial measure.

• It is calculated by dividing (a) stockholders’ equity, excluding AOCI and preferred stock, by (b) common shares outstanding.
• Book value per share is the most directly comparable GAAP measure.

Adjusted Book Value Per Share

Adjusted book value per share is calculated based upon a non-GAAP financial measure.

• It is calculated by dividing (a) stockholders’ equity, excluding AOCI, preferred stock, changes in MRBs, guaranteed living benefit (“GLB”) and guaranteed death benefit (“GDB”) hedge instruments gains (losses), and the difference between amounts recognized in net income (loss) on reinsurance-related embedded derivatives and the underlying asset portfolios (“reinsurance-related embedded derivatives and portfolio gains (losses)”) by (b) common shares outstanding.
• Book value per share is the most directly comparable GAAP measure.

Other Definitions

Holding Company Available Liquidity

Holding company available liquidity consists of cash and invested cash, excluding cash held as collateral, and certain short-term investments that can be readily converted into cash, net of commercial paper outstanding.

Sales

Sales as reported consist of the following:

• Annuities and Retirement Plan Services – deposits from new and existing customers;
• Universal life insurance (“UL”), indexed universal life insurance (“IUL”), variable universal life insurance (“VUL”) – first-year commissionable premiums plus 5% of excess premiums received;
• MoneyGuard^® linked-benefit products – MoneyGuard^® (UL) and MoneyGuard Market Advantage^® (VUL), 150% of commissionable premiums;
• Executive Benefits – insurance and corporate-owned UL and VUL, first-year commissionable premiums plus 5% of excess premium received, and single premium bank-owned UL and VUL, 15% of single premium deposits;
• Term – 100% of annualized first-year premiums; and
• Group Protection – annualized first-year premiums from new policies.

FORWARD-LOOKING STATEMENTS – CAUTIONARY LANGUAGE

Certain statements made in this press release and in other written or oral statements made by Lincoln or on Lincoln’s behalf are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements. Forward-looking statements may contain words like: “anticipate,” “believe,” “estimate,” “expect,” “project,” “shall,” “will” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in Lincoln’s businesses, prospective services or products, future performance or financial results and the outcome of contingencies, such as legal proceedings. Lincoln claims the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA. Forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those expressed in or implied by such forward-looking statements due to a variety of factors, including:

Certain statements made in this press release and in other written or oral statements made by Lincoln or on Lincoln’s behalf are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements. Forward-looking statements may contain words like: “anticipate,” “believe,” “estimate,” “expect,” “project,” “shall,” “will” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in Lincoln’s businesses, prospective services or products, future performance or financial results and the outcome of contingencies, such as legal proceedings. Lincoln claims the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.

Forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those expressed in or implied by such forward-looking statements due to a variety of factors, including:

• Weak general economic and business conditions that may affect demand for our products, account balances, investment results, guaranteed benefit liabilities, premium levels and claims experience;
• Adverse global capital and credit market conditions that may affect our ability to raise capital, if necessary, and may cause us to realize impairments on investments and certain intangible assets, including goodwill and the valuation allowance against deferred tax assets, which may reduce future earnings and/or affect our financial condition and ability to raise additional capital or refinance existing debt as it matures;
• The inability of our subsidiaries to pay dividends to the holding company in sufficient amounts, which could harm the holding company’s ability to meet its obligations;
• Legislative, regulatory or tax changes, both domestic and foreign, that affect: the cost of, or demand for, our subsidiaries’ products; the required amount of reserves and/or surplus; our ability to conduct business; and our affiliate reinsurance arrangements;
• Changes in tax law or the interpretation of or application of existing tax laws that could impact our tax costs and the products that we sell;
• The impact of regulations adopted by the Securities and Exchange Commission (“SEC”), the Department of Labor or other federal or state regulators or self-regulatory organizations that could adversely affect our distribution model and sales of our products and result in additional disclosure and other requirements related to the sale and delivery of our products;
• The impact of existing and emerging rules and regulations relating to privacy, cybersecurity and artificial intelligence (“AI”) that may lead to increased compliance costs, reputation risk and/or changes in business practices, and challenges with properly managing the use of AI that could result in reputational harm, competitive harm and legal liability;
• Continued scrutiny and evolving expectations and regulations regarding ESG matters that may adversely affect our reputation and our investment portfolio;
• Actions taken by reinsurers to raise rates on in-force business;
• Declines in or sustained low interest rates causing a reduction in investment income, the interest margins of our businesses and demand for our products;
• Increasing or sustained higher interest rates that may negatively affect our profitability, value of our investment portfolio and capital position and may cause policyholders to surrender annuity and life insurance policies, thereby causing realized investment losses;
• The initiation of legal or regulatory proceedings against us, and the outcome of any legal or regulatory proceedings, such as: adverse actions related to present or past business practices common in businesses in which we compete; adverse decisions in significant actions including, but not limited to, actions brought by federal and state authorities and class action cases; new decisions that result in changes in law; and unexpected trial court rulings;
• A decline or continued volatility in the equity markets causing a reduction in the sales of our subsidiaries’ products; a reduction of asset-based fees that our subsidiaries charge on various investment and insurance products; and an increase in liabilities related to guaranteed benefits, including riders on certain of our annuity products and secondary guarantees on certain variable universal life insurance products;
• Ineffectiveness of our risk management policies and procedures, including our various hedging strategies;
• A deviation in actual experience regarding future policyholder behavior, mortality, morbidity, interest rates or equity market returns from the assumptions used in pricing our subsidiaries’ products and in establishing related insurance reserves, which may reduce future earnings;
• Changes in accounting principles that may affect our consolidated financial statements;
• Lowering of one or more of our debt ratings issued by nationally recognized statistical rating organizations and the adverse effect such action may have on our ability to raise capital and on our liquidity and financial condition;
• Lowering of one or more of the insurer financial strength ratings of our insurance subsidiaries and the adverse effect such action may have on the premium writings, policy retention and profitability of our insurance subsidiaries and liquidity;
• Significant credit, accounting, fraud, corporate governance or other issues that may adversely affect the value of certain financial assets, as well as counterparties to which we are exposed to credit risk, requiring that we realize losses on financial assets;
• Interruption in or failure of the telecommunication, information technology or other operational systems of the company or the third parties on whom we rely or failure to safeguard the confidentiality or privacy of sensitive data on such systems, including from cyberattacks or other breaches in security of such systems;
• The effect of acquisitions and divestitures, including the inability to realize the anticipated benefits of acquisitions and dispositions of businesses and potential operating difficulties and unforeseen liabilities relating thereto, as well as the effect of restructurings, product withdrawals and other unusual items;
• The inability to realize or sustain the benefits we expect from, greater than expected investments in, and the potential impact of efforts related to, our strategic initiatives;
• The adequacy and collectability of reinsurance that we have obtained;
• Pandemics, acts of terrorism, war or other man-made and natural catastrophes that may adversely impact liabilities for policyholder claims and adversely affect our businesses and the cost and availability of reinsurance;
• Competitive conditions, including pricing pressures, new product offerings and the emergence of new competitors, that may affect the level of premiums and fees that our subsidiaries can charge for their products;
• The unknown effect on our subsidiaries’ businesses resulting from evolving market preferences and the changing demographics of our client base; and
• The unanticipated loss of key management or wholesalers.

The risks and uncertainties included here are not exhaustive. Our most recent Form 10-K, as well as other reports that we file with the SEC, include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors. Further, it is not possible to assess the effect of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, Lincoln disclaims any obligation to correct or update any forward-looking statements to reflect events or circumstances that occur after the date of this press release.

The reporting of Risk-Based Capital (“RBC”) measures 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/20260507547175/en/

John Muething

Investor Relations

Investorrelations@LFG.com

Karyn Baldwin

Media Relations

Media@LFG.com

Source: Lincoln Financial

The post Lincoln Financial Reports 2026 First Quarter Results appeared first on Insurance News | InsuranceNewsNet.

Most insurance professionals remember the first time they learned about modified endowment contracts. The message was clear: Don’t let a policy become a MEC. That guidance has its place, but like many rules in financial planning, it doesn’t apply in every situation.

An MEC isn’t inherently good or bad. In fact, when intentionally designed and aligned with a client’s goals, MECs can be a practical and effective planning tool. Understanding when – and why – that’s the case allows advisors to move beyond blanket rules and toward more thoughtful recommendations.

MECs vs. non-MECs: What actually changes?

An MEC is not a different type of life insurance. It’s simply a tax classification under IRS rules.

Both MEC and non-MEC permanent life insurance policies provide a death benefit, build cash value over time, and pass income-tax-free death benefits to beneficiaries.

The key differences show up in how premiums are funded and how cash is accessed during the policy owner’s lifetime.

Where the distinction really matters: Accessing cash value

Permanent life insurance is subject to IRS limits designed to preserve its status as insurance rather than an investment. When premiums are paid too quickly relative to the policy’s death benefit, the policy may cross that line and be classified as an MEC.

From a client perspective, the most important distinction is taxation.

• Non-MEC policies:
  Cash value can typically be accessed through policy loans without triggering current taxation. These policies are popular for income supplementation strategies.
• MEC policies:
  With policy loans and withdrawals are taxed on a last-in, first-out basis when there is a gain in the policy. Distributions may be subject to penalties if taken before age 59 ½.

Because of this, many advisors’ default is to avoid MECs altogether, but that approach overlooks why an MEC happens – and what it can be designed to accomplish.

How a policy becomes an MEC

Most MECs result from overfunding a policy too quickly.

If the total premiums paid within the first seven years exceed the amount required to fully fund the policy within that period, the IRS considers it an MEC. This determination is made using the 7-pay test, which factors in age, death benefit, premium structure and other policy elements.

Once a policy becomes an MEC, the classification is permanent. That permanence is why intent matters so much.

Why would anyone design an MEC on purpose?

The short answer is efficiency. When cash accumulation, rather than tax-free income, is the primary objective, MECs can be structured to:

• Fund policies aggressively upfront
• Reach cash value break‑even sooner
• Create higher long-term accumulation potential

Even after accounting for taxes and possible penalties, MECs may deliver a higher net cash position than a non-MEC policy designed with lower early funding. Clients commonly consider MECs for goals such as:

• College or education planning
• Large, long-term purchases
• Wealth transfer strategies
• Estate planning
• Parking conservative money with tax-deferred growth

An illustration in practice

Consider a 60-year-old man with $200,000 allocated to a whole life strategy. A two-pay non-MEC design, funded with $100,000 per year, may not break even until year 15. A single-pay MEC design, funded with $200,000 upfront, may break even around year two.

Over time, the MEC structure can significantly outperform in both cash value and death benefit, despite less favorable taxation on distributions. For clients who don’t need early access to funds, this tradeoff can make sense.

Weighing the tradeoffs honestly

MECs are not a fit for every client, and they shouldn’t be positioned as a substitute for non-MEC strategies. However, in situations where clients value tax-deferred growth, minimal market risk and simplified asset transfer at death, an MEC can serve as a compelling alternative to traditional savings vehicles or conservative investment options.

The primary downside, taxation of distributions, is manageable when withdrawals are not part of the core strategy.

Helping clients avoid surprises

Whether an MEC is intentional or not, transparency is critical. Carriers will indicate whether a policy is projected to be issued as an MEC, and advisors should ensure clients understand how the policy is funded, why it does or does not qualify as an MEC, and what that means for future access to cash.

Coordinating with tax and legal professionals is always advisable when MECs are part of the discussion.

The advisor’s takeaway

MECs have earned a reputation as something to avoid, but reputations aren’t planning strategies.

There is no universal rule that says an MEC is a mistake. Like any financial tool, it has advantages and limitations. When it is designed intentionally and used in the right circumstances, an MEC can enhance a client’s overall plan rather than undermine it.

The real risk isn’t creating an MEC. The risk is not understanding when creating one makes sense.

© 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.

The post When an MEC is an effective planning tool appeared first on Insurance News | InsuranceNewsNet.

• Estimated combined risk-based capital (“RBC”) ratio between 430% and 450%; holding company liquid assets of $0.9 billion
• Annuity sales of $2.2 billion, primarily driven by $1.9 billion in sales of Shield Level Annuities
• Life sales of $32 million, primarily driven by sales of Brighthouse SmartCare
• Net loss available to shareholders of $792 million, or $13.82 per diluted share
• Adjusted earnings, less notable items*, of $251 million, or $4.35 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 first quarter ended March 31, 2026.

First Quarter 2026 Results

The company reported a net loss available to shareholders of $792 million in the first quarter of 2026, or $13.82 per diluted share, compared with a net loss available to shareholders of $294 million in the first quarter of 2025, or $5.04 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 first quarter of 2026 with common stockholders’ equity (“book value”) of $3.9 billion, or $67.27 per common share, and book value, excluding accumulated other comprehensive income (“AOCI”) of $8.0 billion, or $139.63 per common share.

For the first quarter of 2026, the company reported adjusted earnings* of $239 million, or $4.15 per diluted share, compared with adjusted earnings of $235 million, or $4.01 per diluted share, for the first quarter of 2025.

Adjusted earnings for the quarter reflect a $12 million unfavorable notable item, or $0.21 per diluted share, related to actuarial refinements.

Corporate expenses in the first quarter of 2026 were $227 million, down from $239 million in the first quarter of 2025 and $234 million in the fourth quarter of 2025, all on a pre-tax basis. Beginning in 2026, certain costs incurred in connection with the previously announced pending acquisition of the company are not categorized as corporate expenses. Excluding these transaction-related costs in the prior periods, corporate expenses decreased $7 million quarter-over-quarter and increased $8 million sequentially.

In the first quarter of 2026, the company reported annuity sales of $2.2 billion, reflecting a decrease of 4% quarter-over-quarter and 20% sequentially. Life sales for the quarter totaled $32 million, representing an 11% decrease both quarter-over-quarter and sequentially.

Annuities

Adjusted earnings in the Annuities segment were $324 million in the current quarter, compared with adjusted earnings of $314 million in the first quarter of 2025 and adjusted earnings of $304 million in the fourth quarter of 2025.

There were no notable items in the current quarter or the fourth quarter of 2025. The first quarter of 2025 included a $10 million unfavorable notable item.

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

As mentioned above, the company reported annuity sales of $2.2 billion, reflecting a decrease of 4% quarter-over-quarter and 20% sequentially.

Life

The Life segment had an adjusted loss of $6 million in the current quarter, compared with adjusted earnings of $9 million in the first quarter of 2025 and adjusted earnings of $18 million in the fourth quarter of 2025.

The current quarter included a $5 million favorable notable item and the fourth quarter of 2025 included a $6 million unfavorable notable item, both related to actuarial refinements. There were no notable items in the first quarter of 2025.

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

As mentioned above, Life sales for the quarter totaled $32 million, representing an 11% decrease both quarter-over-quarter and sequentially.

Run-off

The Run-off segment had an adjusted loss of $48 million in the current quarter, compared with an adjusted loss of $64 million in the first quarter of 2025 and an adjusted loss of $58 million in the fourth quarter of 2025.

The current quarter included a $17 million unfavorable notable item and the fourth quarter of 2025 included a $7 million unfavorable notable item, both related to actuarial refinements. There were no notable items in the first quarter of 2025.

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

Corporate & Other

The Corporate & Other segment had an adjusted loss of $31 million in the current quarter, compared with an adjusted loss of $24 million in the first quarter of 2025 and an adjusted loss of $50 million in the fourth 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 lower net investment income, partially offset by a higher tax benefit. On a sequential basis, the adjusted loss reflects lower expenses.

Net Investment Income

Net investment income was $1,258 million and adjusted net investment income* was $1,268 million in the current quarter.

Adjusted net investment income decreased $23 million on a quarter-over-quarter basis, primarily driven by a reduction in the size of the institutional spread margin business. Adjusted net investment income decreased $66 million sequentially, driven by lower alternative investment income.

The adjusted net investment income yield* was 4.24% during the quarter.

Capitalization

As of March 31, 2026:

• Statutory combined total adjusted capital⁽¹⁾ was $5.0 billion, which declined sequentially mainly driven by non-trendable items, including basis risk which can fluctuate quarter to quarter.
• Estimated combined RBC ratio⁽¹⁾ was between 430% and 450%, which is at the upper-end of our target range of 400% to 450% in normal market conditions, and reflects the change in statutory combined total adjusted capital.
• Holding company liquid assets were $0.9 billion.

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 in the timeframe or 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; 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 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.

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.

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.