Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. freshman Bad
|
New words:
advice, Code, commensurate, conclusion, DOL, ERISA, exclusively, exemption, extension, FABR, fiduciary, IRA, prohibited, proposed, PTE, reinstated, retroactive, roll, smaller, text, Transaction
Removed:
acquiring, administration, amendment, amortize, analyze, arbitrate, August, bear, book, bore, borrow, capitalized, claimed, combined, conform, consist, continuation, death, deficiency, denominated, derive, developing, direction, divergence, DPL, DSI, eliminate, emergence, endorsement, enhance, existing, expensed, experiencing, feature, GMAB, GMDB, GMWB, intangible, introduce, issuance, LDTI, macro, modification, occur, offering, opposite, payable, persistency, processing, profit, promissory, proportion, prospectively, protect, ratably, recalculate, recalculated, recognizing, recoverable, reduce, reflected, remeasurement, removal, removed, renewal, repaid, replaced, replacement, representing, request, retrospectively, revision, revolving, separated, shorter, spent, stable, stockholder, successful, symmetrical, Targeted, TDR, tested, transferring, Troubled, unchanged, unhedged, unrecoverable, updating
Financial report summary
?Risks
- Differences between actual experience and actuarial assumptions may adversely affect our financial results, capitalization and financial condition
- Guarantees within certain of our annuity products may decrease our earnings, decrease our capitalization, increase the volatility of our results, result in higher risk management costs and expose us to increased market risk
- Our variable annuity exposure risk management strategy may not be effective, may result in significant volatility in our profitability measures or may negatively affect our statutory capital
- We may not have sufficient assets to meet our future ULSG policyholder obligations, and changes in interest rates may result in net income volatility
- Changes in accounting standards issued by the Financial Accounting Standards Board may adversely affect our financial statements
- A downgrade or a potential downgrade in our financial strength ratings could result in a loss of business and materially adversely affect our financial condition and results of operations
- An inability to access credit facilities could result in a reduction in our liquidity and lead to downgrades in Brighthouse Financial’s credit ratings and our financial strength ratings
- Reinsurance may not be available, affordable or adequate to protect us against losses
- If the counterparties to our reinsurance or indemnification arrangements or to the derivatives we use to hedge our business risks default or fail to perform, we may be exposed to risks we had sought to mitigate, which could materially adversely affect our financial condition and results of operations
- We may not be able to take credit for reinsurance, our statutory life insurance reinsurance financings may be subject to cost increases and new financings may be subject to limited market capacity
- Factors affecting our competitiveness may adversely affect our market share and profitability
- Brighthouse Financial may experience difficulty in marketing and distributing products through our distribution channels
- The failure of third parties to provide various services to us, or any failure of the practices and procedures that these third parties use to provide services to us, could have a material adverse effect on our business
- Changes in our deferred income tax assets or liabilities, including changes in our ability to realize our deferred income tax assets, could adversely affect our financial condition or results of operations
- Risks associated with climate change could adversely affect our business, financial condition and results of operations.
- Public health crises, extreme mortality events or similar occurrences may adversely impact our business, financial condition, or results of operations, as well as the economy in general
- Brighthouse Financial could face difficulties, unforeseen liabilities, asset impairments or rating actions arising from business acquisitions or dispositions
- Increasing scrutiny and evolving expectations from investors, customers, regulators and other stakeholders regarding environmental, social and governance matters may adversely affect our reputation or otherwise adversely impact our business and results of operations
- If difficult conditions in the capital markets and the U.S. economy generally persist or are perceived to persist, they may materially adversely affect our business and results of operations
- Adverse capital and credit market conditions may significantly affect our ability to meet liquidity needs and our access to capital
- We are exposed to significant financial and capital markets risks which may adversely affect our financial condition, results of operations and liquidity, and may cause our profitability measures to vary from period-to-period
- Our investment portfolio is subject to significant financial risks both in the U.S. and global financial markets, including credit risk, interest rate risk, inflation risk, market valuation risk, liquidity risk, real estate risk, derivatives risk, and other factors outside our control, the occurrence of any of which could have a material adverse effect on our financial condition and results of operations
- Ongoing military actions, the continued threat of terrorism, climate change as well as other catastrophic events may adversely affect the value of our investment portfolio and the level of claim losses we incur
- Our business is highly regulated, and changes in regulation and in supervisory and enforcement policies or interpretations thereof may materially impact our capitalization or cash flows, reduce our profitability and limit our growth
- A decrease in the RBC ratio of Brighthouse Life Insurance Company or BHNY (as a result of a reduction in statutory capital and surplus or an increase in the required RBC capital charges), or a change in the rating agency proprietary capital models, could result in increased scrutiny by insurance regulators and rating agencies and could have a material adverse effect on our financial condition and results of operations
- Changes in tax laws or interpretations of such laws could reduce our earnings and materially impact our operations by increasing our corporate taxes and making some of our products less attractive to consumers
- Legal disputes and regulatory investigations are common in our businesses and may result in significant financial losses or harm to our reputation
- Any gaps in our policies, procedures, or processes may leave us exposed to unidentified or unanticipated risk, and our models used by our business may not operate properly and could contain errors, each of which could adversely affect our business, financial condition, or results of operations
- Any failure in cyber- or other information security systems, as well as the occurrence of events unanticipated in Brighthouse Financial’s or our third-party service providers’ disaster recovery systems and business continuity planning could result in a loss or disclosure of confidential information, damage to our reputation and impairment of our ability to conduct business effectively
- Our associates and those of our third-party service providers may take excessive risks which could negatively affect our financial condition and business
- Any failure to protect the confidentiality of customer, associates, or other third-party information could adversely affect our reputation and have a material adverse effect on our business, financial condition and results of operations
- If the Separation were to fail to qualify for non-recognition treatment for federal income tax purposes, then we could be subject to significant tax liabilities
Management Discussion
- 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.
- Loss before provision for income tax was $733 million ($565 million, net of income tax), an increase of $41 million ($40 million, net of income tax) from loss before provision for income tax of $692 million ($525 million, net of income tax) in the prior period.
- •the impact of long-term interest rates on interest rate derivatives used to manage interest rate exposure in our universal life with secondary guarantees (“ULSG”) business, as the long-term interest rate increased in the current period resulting in a loss of $212 million and decreased in the prior period resulting in a gain of $141 million.