Brighthouse Financial, Inc. (NASDAQ:BHF) Q3 2019 Earnings Conference Call - Final Transcript

Nov 05, 2019 • 08:00 am ET


Brighthouse Financial, Inc. (NASDAQ:BHF) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to Brighthouse Financial's Third Quarter 2019 Earnings Conference Call. My name is Catherine and I'll be your coordinator today. [Operator Instructions]

We will facilitate a question and answer session towards the end of the conference call in fairness to all participants, please limit yourself to one question and one follow-up. [Operator Instructions]

I would now like to turn the presentation over to David Rosenbaum, Head of Investor Relations. Mr Rosenbaum, you may proceed.

David Rosenbaum

Good morning and thank you for joining Brighthouse Financial's third quarter 2019 earnings call. Our earnings release presentation and financial supplement were released last night and can be accessed on the Investor Relations section of our website at We encourage you to review all of these materials, and we will refer to the slide presentation in our prepared remarks.

Today you will hear from Eric Steigerwalt, our President and Chief Executive Officer; followed by Ed Spehar, our Chief Financial Officer. Following our prepared comments, we will open the call up for a question-and-answer period. Also here with us today to participate in the discussions are Myles Lambert, Chief Distribution and Marketing Officer; Conor Murphy, Chief Operating Officer; and John Rosenthal, Chief Investment Officer.

Our discussion during this call will include forward-looking statements within the meaning of the Federal Securities laws. Brighthouse Financial's actual results may differ materially from the results anticipated in the forward-looking statements as a result of risks and uncertainties, including those described from time to time in Brighthouse Financial's filings with the US Securities and Exchange Commission. Information discussed on today's call speaks only as of today, November 5, 2019. The Company undertakes no obligation to update any information discussed on today's call.

During this call, we will be discussing certain financial measures that are not based on generally accepted accounting principles, also known as non-GAAP measures. Reconciliations of these non-GAAP measures on a historical basis to the most directly comparable GAAP measures and related definitions may be found on the Investor Relations portion of our website in our earnings release, slide presentation or financial supplement. And finally, references to statutory results are preliminary due to the timing of the filing of the statutory statements.

And now I'll turn the call over to our CEO, Eric Steigerwalt.

Eric Steigerwalt

Thank you, David, and good morning everyone. Brighthouse delivered solid results during the third quarter of 2019. Global equity market performance was mixed and while US interest rates declined, our variable annuity capitalization remained in line with the second quarter. Investment income from alternative investments was strong given the second quarter market performance, while prepayment income returned to more normal levels.

Claims results were in line with the prior quarter, and sales remained strong. Moving forward, we remain focused on executing our strategy, which we continue to believe will generate long-term shareholder value. As we have previously discussed, one of our goals is to be a consistent returner of capital over time, and we continue to make progress towards achieving