Brighthouse Financial Inc. is reporting that its operations did well in the first quarter, and that its derivatives lost $1.3 billion in value.
The Charlotte, North Carolina-based company is reporting a net loss of $735 million for the quarter on $691 million in revenue, compared with a net loss of $65 million on $1.8 billion in revenue for the first quarter of 2018.
Brighthouse has reported big swings in derivatives value in the past. It recorded $334 million in net losses on its derivatives in the first quarter of 2018, but $2 billion in net derivatives gains in the fourth quarter of 2018.
Adjusted earnings, which exclude the effects of derivatives value fluctuations and some other gains and charges, fell to $259 million, from $288 million in the first quarter of 2018.
Adjusted earnings amounted to $2.21 per share on a diluted share basis, according to Brighthouse. Securities analysts were estimating that the company would report $2.12 per share in operating earnings, according to Morningstar Inc.
Excluding the effects of fluctuations in the value of investments and derivatives, revenue fell to $2 billion, from $2.2 billion in the year-earlier quarter.
Brighthouse sells individual annuities and also has large blocks of individual life insurance on its books.
The annuity unit is reporting $295 million in adjusted earnings for the latest quarter on $1.1 billion in adjusted revenue, up from $226 million in adjusted earnings on $1.1 billion in revenue for the year-earlier quarter.
Variable and Shield annuity deposits increased to $1.3 billion, from $1.1 billion.
Fixed annuity deposits increased to $416 million, from $205 million.
Sales of indexed annuities that are classified as fixed annuities increased to $281 million, from $173 million.
The life insurance company’s unit is reporting $25 million in adjusted earnings for the latest quarter on $303 million in adjusted revenue, down from $66 million in adjusted earnings on $369 million in adjusted revenue.
What Executives Are Saying
Brighthouse will be holding a conference call Tuesday morning to go over the first-quarter results with securities analysts. Members of the public can listen to the call through the web or over the telephone.