Brighthouse Financial has announced the completion of a reinsurance transaction with a third-party reinsurer for a legacy block of its fixed and payout annuities.
The company had previously discussed the transaction during its earnings call for the quarter ending September 30, 2024, held on November 8, 2024.
Eric Steigerwalt (pictured above), president and CEO of Brighthouse Financial, stated that the transaction aligns with the company's strategic goals, including enhancing capital efficiency, unlocking capital, and achieving its target combined risk-based capital (RBC) ratio under normal market conditions.
“As a result of this transaction, our estimated combined RBC ratio as of the end of the third quarter increased to between 400% and 420%, which is within our target range of 400% to 450% in normal market conditions,” Steigerwalt said.
Brighthouse Financial is a major provider of annuities and life insurance in the US. Last month, its life insurance arm, Brighthouse Life Insurance, filed a lawsuit against a California nut grower, alleging breach of contract for defaulting on nine loans totaling $48.6 million.
The suit, filed on October 10 in the US District Court for the Eastern District of California, Fresno Division, names ACDF LLC, successor to 104 Partners LLC and A Farms LLC, along with Maricopa Orchards, LLC, Cantua Orchards, LLC, and individuals Farid Assemi, Darius Assemi, and John Does 1-100 as defendants.
Brighthouse, which spun off from MetLife Inc in 2017, stated that it was involved in a February 2017 loan for $11.4 million to ACDF, secured by 378.75 acres of land used to grow pistachios and almonds. The lawsuit centers on agricultural land tied to these loans.
Brighthouse is seeking the appointment of a receiver to oversee the farmland, crops, and equipment during the litigation process. The company claims the defendants are experiencing significant financial difficulties and have been unable to repay the loans.
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