Brighthouse Financial, Inc.

Annual Actuarial Review

We typically conduct our AAR in the third quarter of each year. As part of the 2026 AAR, for our ULSG business, we updated assumptions regarding policyholder behavior, including mortality, premium persistency, lapses and withdrawals. In addition, we increased the long-term general account earned rate. For our variable annuity business, we updated assumptions regarding annuitization, mortality, lapses and withdrawals, as well as separate account assumptions, including fund fees and allocations. For the payout annuity business, we updated assumptions regarding mortality. For term participating and non-participating whole life insurance, we updated assumptions regarding mortality and lapses.

As part of the 2025 AAR, for our ULSG business, we updated assumptions regarding policyholder behavior, including mortality, premium persistency, lapses and withdrawals. In addition, we increased the long-term general account earned rate, driven by an increase in the mean reversion rate, from 4.00% to 4.50%. For our variable annuity business, we updated assumptions regarding annuitization, mortality, guaranteed principal option utilization, lapses and withdrawals, as well as separate account assumptions, including fund fees and allocations. For the payout annuity business, we updated assumptions regarding mortality. For term participating and non-participating whole life insurance, we updated assumptions regarding mortality and lapses.

The impact on income (loss) available to shareholders before provision for income tax was as follows:

Consolidated Results for the Three Months and Nine Months Ended September 30, 2026 and 2025

Unless otherwise noted, all amounts in the following discussions of our results of operations are stated before income tax except for adjusted earnings, which are presented net of income tax.

The components of net income (loss) available to shareholders were as follows:

Income available to shareholders before provision for income tax was $376 million ($302 million, net of income tax), a decrease of $181 million ($151 million, net of income tax) from income available to shareholders before provision for income tax of $557 million ($453 million, net of income tax) in the prior period.

The decrease in income before provision for income tax was driven by the following unfavorable items:

•lower pre-tax adjusted earnings, as discussed in greater detail below;

•higher losses on derivatives used to manage interest rate exposure in our ULSG business from the unfavorable impact of long-term interest rates increasing in the current period and decreasing in the prior period; and

•net investment gains (losses) reflecting a prior period gain on the sale of a subsidiary which owned certain mineral rights across the U.S and higher net losses on mortgage loans due to an increase in the allowance for credit losses.

The decrease in income before provision for income tax was partially offset by lower losses from variable annuity guaranteed benefit riders, see “— Annuity Guaranteed Benefits and Shield Annuity Liabilities for the Three Months and Nine Months Ended September 30, 2026 and 2025.”

The provision for income tax, calculated as a percentage of income (loss) before provision for income tax, 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 and tax credits.

Income available to shareholders before provision for income tax was $563 million ($466 million, net of income tax), an increase of $320 million ($247 million, net of income tax) from income available to shareholders before provision for income tax of $243 million ($219 million, net of income tax) in the prior period.

The increase in income before provision for income tax was driven by the following favorable items:

•lower losses from variable annuity guaranteed benefit riders, see “— Annuity Guaranteed Benefits and Shield Annuity Liabilities for the Three Months and Nine Months Ended September 30, 2026 and 2025”; and

•the U.S. dollar strengthening in the current period and weakening in the prior period, favorably impacting foreign currency forwards and swaps.

The increase in income before provision for income tax was partially offset by the following unfavorable items:

•lower pre-tax adjusted earnings, as discussed in greater detail below;

•higher losses on derivatives used to manage interest rate exposure in our ULSG business from the unfavorable impact of long-term interest rates increasing in the current period and decreasing in the prior period; and

•net investment gains (losses) reflecting a prior period gain on the sale of a subsidiary which owned certain mineral rights across the U.S, partially offset by lower net losses on mortgage loans due to a smaller increase in the allowance for credit losses and lower net losses on sales of fixed maturity securities.

The provision for income tax, calculated as a percentage of income (loss) before provision for income tax, resulted in an effective tax rate of 15% in the current period compared to 7% in 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.

Reconciliation of Net Income (Loss) Available to Shareholders to Adjusted Earnings (Loss)

The reconciliation of net income (loss) available to shareholders to adjusted earnings (loss) was as follows:

Consolidated Results for the Three Months and Nine Months Ended September 30, 2026 and 2025 — Adjusted Earnings (Loss)

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

Adjusted earnings were $527 million in the current period, a decrease of $443 million.

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

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

◦lower claims, net of reinsurance in our Run-off segment;

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

◦higher ceded cost of insurance (“COI”) fees consistent with unfavorable equity market returns in our Life segment, a portion of which are offset in other expenses;

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

◦lower reinsurance fees on our fixed annuity business resulting from lower account balances; and

•higher amortization of DAC and VOBA resulting primarily from changes in policyholder behavior in our Annuities segment.

◦lower premium taxes and higher guaranty fund assessment credits in our Life and Run-off segments;

◦higher ceded COI expenses consistent with unfavorable equity market returns in our Life segment, which are offset in fee income;

◦lower deferred compensation expenses;

◦lower asset-based variable annuity expenses resulting from lower average separate account balances, which are offset in fee income; and

◦lower transition services agreement expenses; and

•higher net investment spread due to:

◦lower interest credited to policyholders in our fixed annuity business resulting from lower account balances;

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

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 20% in the current period compared to 19% in 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.

Adjusted earnings were $1.0 billion in the current period, a decrease of $379 million.

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

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

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

◦lower reinsurance fees on our fixed annuity business resulting from lower account balances;

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

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

•higher amortization of DAC and VOBA resulting primarily from changes in policyholder behavior in our Annuities segment.

◦lower premium taxes and higher guaranty fund assessment credits in our Life and Run-off segments;

◦lower operational and deferred compensation expenses;

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

◦higher ceded COI expenses consistent with unfavorable equity market returns in our Life segment, which are offset in fee income; and

◦lower transition services agreement expenses; and

•higher net investment spread due to:

◦lower interest credited to policyholders in our fixed annuity business resulting from lower account balances, as well as prior period actuarial modeling improvements in our Annuities segment; and

◦higher yields on long-term fixed income assets;

◦lower returns on other limited partnerships;

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

◦lower average invested short-term assets.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 18% in the current period compared to 19% in 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.

Segment Results for the Three Months and Nine Months Ended September 30, 2026 and 2025 — Adjusted Earnings (Loss)

Annuities

The components of adjusted earnings for our Annuities segment were as follows:

A significant portion of our adjusted earnings is driven by separate account balances related to our variable annuity business, as these balances determine asset-based fee income and commissions. The changes in our variable annuities separate account balances are presented in Note 5 of the Notes to the Interim Condensed Consolidated Financial Statements.

Adjusted earnings were $301 million in the current period, a decrease of $3 million.

•lower fee income due:

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

◦lower reinsurance fees on our fixed annuity business resulting from lower account balances;

◦a lower net increase in liability balances resulting from year-over-year changes made in connection with the AAR; and

•higher amortization of DAC and VOBA resulting primarily from changes in policyholder behavior.

The key favorable impact was a higher net investment spread due to:

•lower interest credited to policyholders in our fixed annuity business resulting from lower account balances;

•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; and

•higher average invested long-term assets;

•lower average invested short-term assets.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings, resulted in an effective tax rate of 19% 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.

Adjusted earnings were $974 million in the current period, an increase of $24 million.

The key favorable impact was a higher net investment spread due to:

•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 average invested long-term assets; and

•lower interest credited to policyholders in our fixed annuity business resulting from lower account balances, as well as actuarial modeling improvements in the prior period;

•lower average invested short-term assets.

◦lower reinsurance fees on our fixed annuity business resulting from lower account balances; and

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

•higher amortization of DAC and VOBA resulting primarily from changes in policyholder behavior; and

◦a lower net increase in liability balances resulting from year-over-year changes made in connection with the AAR.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings, resulted in an effective tax rate of 19% in both the current period and the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impact of the dividends received deduction.

Life

The components of adjusted earnings (loss) for our Life segment were as follows:

Adjusted earnings were $91 million in the current period, an increase of $51 million.

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

◦a higher net decrease in liability balances resulting from year-over-year changes made in connection with the AAR;

◦higher claims, net of reinsurance; and

◦higher ceded COI expenses consistent with unfavorable equity market returns, which are offset in fee income; and

◦lower premium taxes and higher guaranty fund assessment credits.

The key unfavorable impact was lower fee income due to higher ceded COI fees consistent with unfavorable equity market returns, a portion of which are offset in other expenses.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 21% in the current period compared to 18% in the prior period. Our effective tax rate may differ from the statutory tax rate primarily due to the impact of the dividends received deduction.

Adjusted earnings were $81 million in the current period, an increase of $58 million.

Key favorable impacts were:

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

◦a higher net decrease in liability balances resulting from year-over-year changes made in connection with the AAR and other refinements; and

◦lower premium taxes and higher guaranty fund assessment credits;

◦higher ceded COI expenses consistent with unfavorable equity market returns, which are offset in fee income; and

◦lower operational expenses.

The key unfavorable impact was a lower net investment spread due to:

•lower returns on other limited partnerships; and

•lower average assets and yields on invested long-term assets.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 19% in the current period compared to 12% in the prior period. Our effective tax rate differs from the statutory tax rate primarily due to the impact of the dividends received deduction.

Run-off

The components of adjusted earnings (loss) for our Run-off segment were as follows:

Adjusted earnings were $166 million in the current period, a decrease of $475 million.

◦a lower net decrease in liability balances resulting from year-over-year changes made in connection with the AAR and other refinements;

◦a prior period increase in liability balances resulting from a premium rate increase on an existing reinsurance agreement; and

•lower fee income due to a decline in the net COI fees driven by the aging in-force business.

The key favorable impact was lower other expenses due to lower premium taxes and higher guaranty fund assessment credits.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 21% in both the current period and the prior period.

Adjusted earnings were $62 million in the current period, a decrease of $432 million.

◦a lower net decrease in liability balances resulting from year-over-year changes made in connection with the AAR and other refinements;

◦a prior period increase in liability balances resulting from a premium rate increase on an existing reinsurance agreement;

•lower net investment spread due to:

◦lower returns on other limited partnerships; and

◦lower average invested long-term assets; and

•lower fee income due to a decline in the net COI fees driven by the aging in-force business.

The key favorable impact was lower other expenses due to:

•lower premium taxes and higher guaranty fund assessment credits; and

•lower operational expenses.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in an effective tax rate of 21% in both the current period and the prior period.

Corporate & Other

The components of adjusted earnings (loss) for our Corporate & Other segment were as follows:

Adjusted loss was $31 million in the current period, a higher loss of $16 million.

The key unfavorable impact was a lower net investment spread due to lower average invested long-term assets and yields on our institutional spread margin business.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in a higher effective tax rate in the current period compared to 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. We believe the effective tax rate for the Corporate & Other segment is not generally meaningful, neither on a standalone basis nor for comparison to prior periods, since taxes for the Corporate & Other segment are derived from the difference between the overall consolidated effective tax rate and total taxes for the combined operating segments.

Adjusted loss was $93 million in the current period, a higher loss of $29 million.

The key unfavorable impact was a lower net investment spread due to lower average invested long-term assets and yields on our institutional spread margin business.

The provision for income tax, calculated as a percentage of pre-tax adjusted earnings (loss), resulted in a higher effective tax rate in the current period compared to 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. We believe the effective tax rate for the Corporate & Other segment is not generally meaningful, neither on a standalone basis nor for comparison to prior periods, since taxes for the Corporate & Other segment are derived from the difference between the overall consolidated effective tax rate and total taxes for the other operating segments.

Annuity Guaranteed Benefits and Shield Annuity Liabilities for the Three Months and Nine Months Ended September 30, 2026 and 2025

The overall impact on income (loss) available to shareholders before provision for income tax from the performance of annuity guaranteed benefits and Shield Annuity liabilities, which includes (i) changes in the fair value of liabilities and related reinsurance, (ii) fees net of claims and (iii) the mark-to-market of hedges, was as follows:

Three Months Ended September 30, 2026

Annuity guaranteed benefits and Shield Annuity liabilities performance was unfavorable for the three months ended September 30, 2026, primarily driven by:

•favorable decreases in annuity guaranteed benefits liabilities due to increasing interest rates, partially offset by lower separate account returns and changes made in connection with the AAR;

•unfavorable changes in variable annuity and Shield hedges due to increasing long-term interest rates, partially offset by increasing equity markets; and

•unfavorable changes in Shield embedded derivatives due to increasing equity markets.

Three Months Ended September 30, 2025

Annuity guaranteed benefits and Shield Annuity liabilities performance was unfavorable for the three months ended September 30, 2025, primarily driven by:

•unfavorable increases in annuity guaranteed benefits liabilities due to changes made in connection with the AAR and decreasing interest rates, partially offset by increasing equity markets;

•favorable changes in variable annuity and Shield hedges due to increasing equity markets; and

•unfavorable changes in Shield embedded derivatives due to increasing equity markets and changes made in connection with the AAR.

Nine Months Ended September 30, 2026

Annuity guaranteed benefits and Shield Annuity liabilities performance was unfavorable for the nine months ended September 30, 2026, primarily driven by:

•favorable decreases in annuity guaranteed benefits liabilities due to increasing interest rates and equity markets, partially offset by changes made in connection with the AAR;

•favorable changes in variable annuity and Shield hedges due to increasing equity markets, partially offset by increasing long-term interest rates; and

•unfavorable changes in Shield embedded derivatives due to increasing equity markets.

Nine Months Ended September 30, 2025

Annuity guaranteed benefits and Shield Annuity liabilities performance was unfavorable for the nine months ended September 30, 2025, primarily driven by:

•unfavorable increases in annuity guaranteed benefits liabilities due to changes made in connection with the AAR and decreasing interest rates, partially offset by increasing equity markets;

•favorable changes in variable annuity and Shield hedges due to increasing equity markets and decreasing long-term interest rates; and

•unfavorable changes in Shield embedded derivatives due to increasing equity markets and changes made in connection with the AAR.