Brighthouse Financial managed to sell almost as many individual annuities in the second quarter as it sold in the second quarter of 2019.
The company’s sales of individual annuities fell to $1.84 billion in the second quarter, from $1.89 billion in the year-earlier quarter.
Brighthouse sales of life insurance increased to $12 million, from $4 million.
(Related: Lincoln Pivots Toward Variable Annuity Sales: Earnings)
Brighthouse uses derivatives to support the annuities it sells. Because of efforts to include fluctuations in the value of its derivatives in its earnings, its second-quarter earnings look bad.
The company is reporting a $2 billion net loss for the second quarter on negative $922 million in revenue, compared with $384 million in net income on $2.4 billion in revenue for the second quarter of 2019.
Adjusted earnings, which exclude the derivatives adjustment and some other gains and charges, look bad, but less bad: They fell to $11 million, from $254 million.
The Charlotte, North Carolina-based life insurer’s risk-based ratio continues to be over 515%.
BlackRock recently picked Brighthouse to be one of two insurers helping to provide the annuities powering a 401(k) plan annuitization option.
Eric Steigerwalt, the Brighthouse chief executive officer, cited the arrangement as an example of good news in a comment included in the earnings announcement.
FBL Financial Group (NYSE:FFG)
FBL is reporting $26 million in net income for the second quarter on $201 million in revenue, compared with $32 million in net income on $193 million in revenue for the second quarter of 2019.
FBL’s annuity unit is reporting $15 million in pre-tax adjusted operating income on $54 million in revenue, which is about what it reported for the year-earlier quarter.