Brighthouse Financial Overview

Brighthouse Financial, Inc., a ranked as one of the largest providers of life insurance and annuities in the United State. The company’s headquarters is located in the heart of Charlotte North Carolina, United States. Based on its operation as a company, Brighthouse Financial, Inc., records a total revenue of 503 Billion USD, and a total sum of 1, 400 employees in its workforce. Brighthouse Financial, Inc.,  strives in its capacity to provide and make available effective and seamless life insurance scheme that works for all specific market niche. Since June 1863 which traces the company’s foundation Travelers Insurance Company which was founded in the heart of Hartford, Connecticut, the company had gone through several name cognomens over the years before it was later changed and re-branded to begin operating under the name, Brighthouse Financials on 6th March 2017. Brighthouse Financial, Inc., utilizes several management techniques like separation, rip-offs, mergers and acquisitions to ensure various market niches are met optimally which by extension would lead to the business’s overall efficiency and pro-activeness. A typical example of this was in January when the company took the decision to separate its retail segment which focuses on selling life insurance and annuities. The company’s divisions marked to be separated include the Brighthouse Life Insurance company of New York which was formerly known as First MetLife Investor Insurance Company, Brighthouse Life Insurance Company which was formerly known as MetLife Insurance Company USA, and New England Insurance  Company. In this piece, however, you would be shown a comprehensive and extensive review of the company’s dealings and their aspects. As such, all relevant information detailing its historical background, its key facts, its affiliated brands and service locations, its financial overview, as well as its pros and cons would be concisely covered to enable you to understand the significant key major elements of the company as quickly as possible.  

Brighthouse Financial Inc. Key Facts Analysis

Founding Year: Brighthouse Financial Inc., was originally founded in 1863, which is approximately 159 years from now. 

Industrial Ranking: Brighthouse Financial, Inc., is ranked 468th position on the Fortune 500 list, indicating the company as one of the largest corporate companies with substantial total revenue in the United States. 

Company Type: A Public Corporation (PLC) 

Industry Type: Insurance 

Trading Type: Brighthouse Financial, Inc., is traded on the New York Stock Exchange (NYSE) market 

Workforce Strength: They have a total number of 1, 400 employees in its workforce. 

Brighthouse Financial Inc. Historical Background 

 Brighthouse Financial, Inc., was founded in n1863 with its headquarters based in Charlotte, North Carolina, United States, and over the years, the company has grown to become one of the most sought-after companies in the insurance industry.  The company has its origin traced back to Travelers Insurance Company which was founded in Hartford, Connecticut. Travelers Insurance Company when it started began the sale of life insurance policies but dives into selling annuities in 1938. The company is ranked one of the best providers of life insurance and annuity products through independent distribution and transmission channels and marketing plans with distribution partners. In its entirety, the company’s segments are Annuities, Run-off, and Life. And its major source of revenue is based on and derived from the Annuities segment which includes but is not limited to: fixed, variable, income annuities, and index-linked. However, the life insurance segments include but are not limited to: universal, term, variable, as well as whole life policies. Although, as aforementioned in the introductory part of this article,  the company had gone through several transition stages, before it was eventually rebranded with the name, Brighthouse Financial. This section, will, however, give an overview and snapshot of the company’s history and  

In the year 2016, January, Brighthouse Financial, Inc., which was formerly MetLife Inc., announced its intention to separate a major portion of the company’s United States retailing segment, a department which focuses majorly on the sale of annuities and life insurance. 

On the 21st of July, 2016, MetLife, Inc., announced its intention to change and rebrand the company’s name as Brighthouse Financial, Inc., and this intention materialized on the 6th of March, 2017 when the company began the sale of its stock: annuities and life insurance plans under the new branded name, Brighthouse Financial, Inc.   

On the 4th of August, 2017, Brighthouse Financial, Inc., completed its separation from MetLife, and the company started trading on the Nasdaq stock exchange on the 7th, of August, 2017 under the ticker name, BHF.  

In the year 2022, Brighthouse Financial, Inc., was enlisted 468th on the Fortune 500 list, which indicates the company as one of the largest annuities and life insurance companies in the whole of the United States of America. In its entirety, the company manages nearly $230 Billion USD in its total asset account.  

Brighthouse Financial, Inc., Market Niche 

Brighthouse Financial, Inc., primarily focuses on two market niches which are the sale of annuities and life insurance. In this section, the two market niches will be concisely addressed for easy and seamless understanding. 

The Annuity Market Niche: 

The annuity segment covers a half portion of Brighthouse Financial, Inc.,’s overall market segments and it deals with a series of long-term investments issued by an insurance firm that is tailored to help prevent and protect consumers from the risk and hazard of outliving their remuneration and income. Through annuitization, your purchase payment that is, what a consumer contributes would be converted into periodic and base-to-base payments that can last for a lifetime. In this niche market, Brighthouse Financial, Inc., reaches its consumers via multiple independent and distributive channels. The company ensures the sale of these products is served by a third-party vendor, operating under the name, DXC Technology as against selling it directly by Brighthouse Financial. 

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The Annuities Offered By Brighthouse Financial Inc.

Income Annuities: This type of annuity is somewhat different from other types of annuities because the premium used to buy the annuity does not go through a compiled and accumulated period, however, the principal is quickly converted into multiple streams of income payments. Brighthouse Financial, Inc., offers its consumers two types of income annuities which are: guaranteed income annuities and immediate income annuities.    

 

Fixed Annuities:

This type of annuity is tailored to offer guaranteed growth and progress of initial premium payments over time. The premium, however, earns interest which is based on a fixed rate guaranteed for a part of the accumulated period, which then can be renewed or reviewed for a future period at the same or different rate.   

Indexed Annuities: 

This annuity conjoins interest based on two factors which are (1) a fixed rate that remains constant, and (2) a rate that is based on the progressive trend and growth of an equity market index.  

Variable Annuities: 

This type of annuities, it technically has similarities to an indexed annuity such that both products are strategically linked to the growth of an equity market index.. However, the variable annuity differs from the indexed annuity in that it is determined by the index’s performance with no extra fixed growth rate and no maximum rate of how much the annuity value can grow. 

The Life Insurance Market Niche: 

The life insurance niche market is the second half of the company’s overall operation segment. In its entirety, Brighthouse Financial, Inc., life insurance segment primarily focuses on insurance contracts that occur between an insurer, or assurer (that is the insurance company), and the insurance policyholder ( that is the insured). In this market niche, the insurer promises in exchange for a periodic payment, to pay or refund a designated beneficiary a specified sum of money upon the death of the insurance policy holder, that is, the insured individual. However, subject to the contract, events such as critical illness and terminal illness can however trigger and attract payment. Similarly, as with the Annuity Niche Market, Brighthouse Financial, Inc., reaches its consumers via multiple independent and distributive channels. The company ensures the sale of these products is served by a third-party vendor, operating under the name, DXC Technology as against selling it directly by Brighthouse Financial. 

Products under the life insurance market niche include 

Term life 

Permanent life 

Long-term Care

Brighthouse Financials Key Financials 

Revenue: 3.79 Billion USD 

Net Income (Profit): 983 Million USD  

Total Asset: 227.259 Billion 

Total Equity: 16.1 Billion 

Market Value: 3.9 Billion USD 

Brighthouse Financial Inc. Pros  

Brighthouse Financial, Inc., drew a relatively fewer number of complaints expected from a company of its size to state regulators. 

Brighthouse Financial, Inc., scored an A, indicating an excellent ranking from AM Best, which signifies excellent financial strength.  

Coverage rates are reportedly affordable.  

Brighthouse Financial, Inc., offers various types of annuities.

Brighthouse Financial Inc. Cons 

Brighthouse Financial, Inc., ranked last in the 2021 J.D. Power study on customer satisfaction for life insurance   

A limited selection of life insurance products 

No direct sales 

Conclusion 

It is quite amusing that despite the long-shot of years since the inception of Brighthouse Financial, Inc. the corporation has continued to increase its growth exponentially hitherto this day, although the secret to this is not quite far fetched, it is, however, the company’s ability and acumen to deceiver on time its core business niches and focus on them. Finally, with all being said in the foregoing sections of this piece, I hope your expectation, as promised in the introductory part of this piece has been met, and that you have adequately absorbed all there is to know about Brighthouse Financial, Inc.