Brighthouse Financial, Inc. 4.625% Non-Cumulative Preferred Stock, Series D (BHFAM)

Overview

Brighthouse Financial, Inc. stands as a pivotal provider of annuity and life insurance products in the United States, distinguishing itself through a focused approach to financial security and wealth management solutions. Founded in 1863 and with its headquarters in Charlotte, North Carolina, the company has steadily grown into a major player in the financial services industry. Brighthouse Financial operates through three core segments: Annuities, Life, and Run-off, each tailored to meet the diverse financial needs and goals of its customers, ranging from wealth accumulation and transfer to income security.

Products and Services

• Annuities

  This segment caters to customers looking for ways to accumulate wealth on a tax-deferred basis, secure their wealth transfer, and ensure income security. Products offered include:

  • Variable Annuities - Designed for individuals who are seeking customizable retirement and investment solutions that offer the potential for growth, along with the option for guaranteed income.
  • Fixed Annuities - Aimed at those wanting a stable and guaranteed return on their investment, fixed annuities provide a secure and consistent income stream for retirement.
  • Index-Linked Annuities - These products offer a balance between growth potential and protection, providing a return based on the performance of a specified index, while also guarding against the downside risk.
  • Income Annuities - Tailored for retirees and other individuals who need regular income payments, income annuities are designed to provide a steady cash flow for a specified period or for life.
• Life

  The Life segment offers a range of life insurance products designed to meet various needs for financial security and wealth transfer, including:

  • Term Life Insurance - Provides life insurance coverage for a specified "term" or period of time, offering a death benefit to beneficiaries at a fixed rate of payments.
  • Universal Life Insurance - Offers flexibility in terms of adjusting the death benefit and premium payments over time. This type of insurance can also accumulate cash value.
  • Whole Life Insurance - Includes life insurance coverage that lasts for the insured's lifetime, combined with a savings component, where cash value can accumulate on a tax-deferred basis.
  • Variable Life Insurance - Combines life insurance coverage with an investment component, where the cash value and death benefit can vary based upon the performance of the selected investments.
• Run-off

  This segment is focused on the management of the company's legacy businesses and products that are no longer actively marketed or sold, including:

  • Structured Settlements - Manages annuities that are typically used to compensate personal injury claimants.
  • Pension Risk Transfer Contracts - Involves taking over the pension payment obligations of retirement plans from employers, thereby assuming the risk associated with the plan.
  • Company-owned Life Insurance Policies - Deals with life insurance policies owned by the company itself, often used for corporate finance purposes.
  • Funding Agreements - Financial instruments that offer fixed returns over a specified period of time, similar to a bond or certificate of deposit.
  • Universal Life with Secondary Guarantees - A specific type of universal life insurance product that provides a death benefit along with a "no-lapse" guarantee, ensuring the policy remains in force as long as the required premiums are paid.