Highlights

  • Brighthouse shows 32.98% one-year basic EPS growth, a P/E of 3.60 and PEG of 0.18.
  • Second quarter net income available to common shareholders was $956 million, against $60 million.
  • Adjusted earnings, a non-GAAP measure, were $258 million in the second quarter.
  • The Aquarian merger agreement provides $70.00 per share in cash; closing awaits insurance regulators.

Brighthouse Financial (NASDAQ:BHF) reported second quarter 2026 net income available to common shareholders of $956 million in its August 6 filing, and the undervalued growth stock figures read 32.98% one-year growth in basic earnings per share, a trailing twelve-month P/E of 3.60 and an expected-basis PEG of 0.18, with shares trading at USD 44.04 on October 28, 2026, down 1.54%. On the company's side, the annuity and life insurance provider signed a merger agreement with Aquarian Holdings VI L.P. on November 6, 2025, saw stockholders adopt it on February 12, 2026, and received FINRA approval on May 19, 2026 and notice of a concluded CFIUS review on June 18, 2026.

Brighthouse Financial has its principal executive offices in Charlotte, North Carolina, and is incorporated in Delaware. It describes itself as one of the largest providers of annuity and life insurance products in the United States, selling through multiple independent distribution channels and marketing arrangements with distribution partners. Its reportable segments are Annuities, Life, Run-off, and Corporate & Other.

Growth: Second Quarter Earnings, Adjusted Earnings and Segments

Net income available to common shareholders was $956 million in the second quarter against $60 million a year earlier, and $164 million for the six months against a net loss of $234 million. Basic earnings per share were $16.62 against $1.03 for the quarter, and diluted earnings per share were $16.53 against $1.02. For the six months, basic earnings per share were $2.85 against a loss of $4.06.

Brighthouse said the second quarter result primarily reflects net changes in its variable annuity and Shield hedges, changes in the estimated fair value of variable annuity guaranteed benefit riders net of Shield embedded derivatives due to market factors, and pre-tax adjusted earnings. Total revenues were $1,622 million against $871 million.

Adjusted earnings, a non-GAAP measure, were $258 million against $198 million for the quarter, and $497 million against $433 million for the six months. Annuities adjusted earnings were $349 million, an increase of $17 million. The Life adjusted loss was $4 million, a lower loss of $22 million, the Run-off adjusted loss was $56 million, a lower loss of $27 million, and the Corporate & Other adjusted loss was $31 million, a higher loss of $6 million.

Valuation: P/E of 3.60, PEG of 0.18 and the Merger Price

The P/E ratio of 3.60 is measured on trailing twelve-month earnings, and the PEG ratio of 0.18 on expected growth. Total Brighthouse Financial stockholders' equity was $6,550 million at June 30, 2026 against $6,768 million at December 31, 2025.

Under the merger agreement, each share of common stock will convert at the effective time into the right to receive $70.00 per share in cash, without interest and less any required withholding.

Capital Position, Debt and Liquidity

Brighthouse did not repurchase common stock in the six months ended June 30, 2026, against 1,844,396 shares for $102 million in the same period of 2025. $441 million remained under its $750 million program, authorized in November 2023. Under the merger agreement, the company agreed not to pay common dividends or repurchase stock without Aquarian Parent's consent, except as permitted, and it may pay preferred dividends at the stated per-quarter amounts. Preferred stock dividends were $51 million for the six months.

Long-term debt was $3,154 million against $3,155 million at December 31, 2025. Short-term liquidity was $3.8 billion against $4.3 billion, and liquid assets were $49.0 billion against $50.1 billion. The company targets a combined risk-based capital ratio of 400% to 450% in normal market conditions.

Disclosed Risks and Outlook

The merger closing remains subject to insurance regulatory approvals in Delaware, New York and Massachusetts. As of the filing, the company said that if the merger had not closed by September 6, 2026, the agreement would extend automatically to December 6, 2026, and that it expects the merger to close in 2026. It noted that the merger may not complete within the expected timeframe or at all.

Brighthouse is a defendant in a number of litigation matters. They include cost of insurance class actions, one in which the court granted class certification in part on September 25, 2025, and a purported class action over the MOVEit data security incident at a third-party vendor. It estimated aggregate reasonably possible losses of up to approximately $10 million, plus a range of zero to approximately $100 million for certain tax and reinsurance matters, and said an adverse outcome could have a material effect on net income or cash flows in a particular period.

The company said its results are materially affected by capital markets and economic conditions. The filing contains no earnings guidance.