Charlotte’s Brighthouse Financial reports quarterly loss after splitting from MetLife
Brighthouse disclosed a net loss in the third quarter of
Speaking on a conference call with analysts and others to discuss the results, Steigerwalt said he was very pleased with the new firm's sales momentum. The company said its annuity sales increased 8 percent from a year ago. Life insurance sales slipped 82 percent.
In a move some analysts weren't expecting, Steigerwalt announced the firm was lowering its target for operating return on equity, a measure of how effective a company is at using shareholder funds to generate profits.
Steigerwalt said the new target was about 8 percent on average over time. That's down from a goal of approximately 9 percent outlined in securities filings before the spin-off. Steigerwalt attributed the adjustment partly to the fact that Brighthouse posted a profit in the second quarter, as well as the impact spin-off transactions had on shareholder equity.
Shares of Brighthouse fell more than 4 percent Thursday to
Brighthouse, whose products range from life insurance to annuities, said it employs about 1,200 nationwide, including in
In an Observer interview
On Thursday, Steigerwalt said a priority has been to create a recognizable brand for the new company. He pointed to advertising efforts taken since the brand's launch in March, including TV commercials that ran during the World Series and other shows. Initial feedback to the ads has been very favorable, he said.
"These campaigns have helped generate awareness in the market and have allowed us to hit the ground running as a new public company," he said.
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