Brighthouse Financial, Inc.

Consolidated Results for the Years Ended December 31, 2025 and 2024 - Adjusted Earnings (Loss)

The components of adjusted earnings (loss) were as follows:

Adjusted earnings were $1.6 billion in the current period, an increase of $298 million.

Key net favorable impacts were:

•lower net costs associated with insurance-related activities due to:

◦a net decrease in liability balances resulting from year-over-year changes made in connection with the AAR in our Run-off and Life segments and other refinements; and

◦a decrease in liability balances in our Run-off segment resulting from a reinsurance premium rate increase associated with the conclusion of a reinsurance arbitration in the prior period;

◦higher claims, net of reinsurance, in our Life and Run-off segments; and

◦an increase in liability balances in our Run-off segment resulting from a premium rate increase on an existing reinsurance agreement; and

•higher net fee income due to:

◦lower ceded COI fees in our Life and Run-off segments related to the conclusion of the aforementioned reinsurance arbitration in the prior period;

◦lower asset-based fees resulting from lower average separate account balances, a portion of which is offset in other expenses; and

◦a decline in the net COI fees driven by the aging in-force business in our Run-off segment.

•lower net investment spread due to:

◦higher interest credited to policyholders due to higher account balances and prior period changes made in connection with the AAR, net of year-over-year actuarial modeling improvements in our Annuities segment;

◦lower yields and average invested long-term assets on our institutional spread margin business;

◦lower returns on other limited partnerships; and

◦lower returns on short-term investments;

◦higher investment yields on our fixed income portfolio, as proceeds from maturing investments and the growth in the investment portfolio were invested at higher yields than the portfolio average;

◦higher returns on real estate limited partnerships and limited liability companies (“LLC”); and

◦higher average invested long-term assets;

•higher other expenses due to:

◦higher operational expenses;

◦lower asset-based variable annuity expenses resulting from lower average separate account balances, a portion of which is offset in fee income;

◦lower reinsurance expenses in our Life and Run-off segments associated with the conclusion of the aforementioned reinsurance arbitration in the prior period; and

◦lower transition services agreement expenses; and

•higher amortization of DAC and VOBA resulting primarily from changes in policyholder behavior in our Annuities segment net of the aging in-force business in our Life segment.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 18% in both the current period and the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impacts of the dividends received deduction, tax credits and current period non-recurring items.