BHFAL Brighthouse Financial Inc

Brighthouse Financial Inc. (BHF) is reportedly exploring a sale to global investment firm Sixth Street, which has offered approximately $55 per share, valuing the company at $3.14 billion. This bid represents a premium over the current share price but is lower than a previous offer from Aquarian Holdings. The news follows weeks of negotiations.

Brighthouse Financial executives expressed disappointment over their Q2 statutory capital numbers, specifically a decline in their risk-based capital (RBC) ratio below the preferred operating range of 400%-450%. This drop was primarily attributed to variable annuity hedging issues and the underperformance of equity hedges. Despite positive developments like record Shield annuity sales and strong adjusted earnings, the company is implementing initiatives, including standalone hedging for new Shield business, to restore the RBC ratio within 6 to 12 months.

Principal Financial Group announced its decision to exit most of its U.S. life insurance and annuity business for consumers. The Iowa-based company stated it would discontinue sales of all U.S. retail fixed annuities and much of its consumer life insurance, seeking strategic alternatives for existing policies. This move makes Principal Financial the latest well-known insurer to withdraw from these product lines.

Brighthouse Financial Inc. shares closed down 4.4% on its first day of trading after splitting off from MetLife Inc., having fallen more than 5% at one point. The stand-alone Brighthouse was created from three parts of MetLife, including its historic core life insurance business, a large annuity seller, and a "runoff" business of older contracts.