First quarter sales of Brighthouse Financial’s Shield brand of index-linked annuities soared 59 percent over the year-ago period to $729 million.
Sales reflect the strength of the company’s distribution relationships and advertising and marketing campaigns, Brighthouse president and CEO Eric Steigerwalt said in a conference call.
Sales of Shield annuities along with the company’s fixed indexed annuities rose 35 percent to $1.3 billion over the year-ago quarter, the company also reported.
“We intend to continue focusing our efforts on offerings simpler, more transparent products, enhancing our broad network of independent distribution partners, and building a recognized and respected brand,” Steigerwalt said.
Company Beats Street Estimates
Brighthouse, which was spun off as a separate company last August, is still in the midst of exiting scores of “transition service agreements” with former parent MetLife.
Those agreements contribute to Brighthouse’s corporate expenses.
Brighthouse exited eight of those agreements in the first quarter, but still has 139 agreements to work through.
The company expects to incur between $1 billion and $1.1 billion in expenses in the first year following the separation.
On Monday, Brighthouse reported a loss of $67 million in its first quarter.
On a per-share basis, the company said it had a loss of 56 cents. Earnings, adjusted for non-recurring costs, were $2.36 per share.
The results surpassed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $2.04 per share.
The annuity and life insurance company posted revenue of $1.82 billion in the period. Its adjusted revenue was $2.15 billion.
Brighthouse Financial shares have dropped 14 percent since the beginning of the year.
InsuranceNewsNet Senior Writer Cyril Tuohy has covered the financial services industry for more than 15 years. Cyril may be reached at [email protected]
© Entire contents copyright 2018 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.