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Proprietary index evaluates investors’ market risk vulnerability

86% of high-index investors do not meet the recommended asset diversification benchmark

Nearly half of high-index investors would allocate 49% of their portfolios to cash, doubling recommended levels

LANSING, Mich.–(BUSINESS WIRE)–
Jackson National Life Insurance Company® (Jackson®), the main operating subsidiary of Jackson Financial Inc.¹ (NYSE: JXN), today unveiled key findings from its latest research on market risk,² conducted in collaboration with the Center for Retirement Research at Boston College. This study, the fourth installment in Jackson’s Security in Retirement Series, sheds light on how investors perceive, plan for and manage market risk, and exposes a surprising truth: those who avoid the risk of losing money on investments may be vulnerable to a different form of market risk — the risk of low long-term returns.

“Our findings challenge the traditional notion that avoiding risk equates to financial security,” said Glen Franklin, Assistant Vice President of Research, RIA and Lead Generation Strategy for Jackson National Life Distributors LLC (JNLD), the marketing and distribution business of Jackson. “The research underscores the importance of aligning financial behaviors with long-term goals and highlights the value of working with a financial professional to help build resilience against market volatility.”

The Jackson Market Risk Vulnerability Index

To better understand market risk exposure, Jackson developed the proprietary Market Risk Vulnerability Index (Index), a tool that evaluates investors’ financial positioning against five key benchmarks: spending, savings, cash allocation, stock-bond split and diversification. Based on how many of the benchmarks they met, investors were scored as low-index (least vulnerable to market risk), medium-index or high-index (most vulnerable to market risk). The Index revealed that:

• 57% of high-index investors spend over 50% of their income on basic needs, compared to just 5% of low-index investors.
• Only 4% of high-index investors meet the recommended stock allocation, leaving them ill-prepared for long-term growth.
• High-index investors are more than twice as likely as low-index investors to cite longevity risk as a major concern (56% vs. 27%), yet they are less likely to have a plan in place to address it.

Additional key findings from the study include:

• Widespread financial vulnerability. The Jackson report highlights significant financial vulnerability among investors nearing or in retirement. For example, approximately 30% of the survey respondents reported investable assets between $100,000 and $299,999. Many investors fail to meet key benchmarks of general financial health such as appropriate cash allocation, retirement savings targets, or asset diversification, with only 14% of high-index investors meeting the recommended asset diversification benchmark.
• Risk-averse investors face heightened risk exposure. Investors in the study who describe themselves as unwilling to take risks are among the most vulnerable to the market risk of not realizing potential investment gains. These individuals often hold excessive cash positions — with their ideal cash holdings averaging 49% of total assets, more than double the recommended 20% threshold³ — and lack diversification. Such behaviors, while cautious on the surface, may leave these investors in a disadvantaged position. High cash holdings can minimize gains during market upswings, and a lack of diversification can leave investors more exposed to market volatility during downturns.
• High-index investors lack financial resilience. High-index investors, on average, have investable assets nearly 70% lower than their low-index counterparts. Additionally, their average remaining mortgage balance is 78% higher than that of low-index investors, further limiting their ability to build financial security.
• Diversification too often cited as tactic to protect against market risk. While diversification is a foundational strategy for managing many portfolio risks, it is ineffective in protecting against market risk. However, the study found financial professionals and investors widely cite diversification as a key tactic. During systemic market events like the 2008 financial crisis or the 2020 COVID-19 crash, nearly all asset classes decline together, often rendering traditional diversification strategies ineffective without additional protective measures like annuities or hedging tools such as derivatives.
• Moderate risk-taking correlates with better outcomes. Investors who adopt a balanced approach to risk (favoring diversification and moderate equity exposure) are more likely to meet key financial benchmarks. They are also more likely to use cost-efficient tools like index mutual funds and ETFs, contributing to better long-term outcomes.
• Financial literacy and professional guidance matter. The report found that 72% of low-index investors work with a financial professional, compared to just 43% of high-index investors. This collaboration, combined with higher financial literacy, correlates with greater confidence and preparedness among low-index investors. They are also more likely to engage in effective planning behaviors, such as annual portfolio rebalancing, which is practiced by 56% of low-index investors.
• Annuities can play a unique role in helping manage market risk. Of the financial professionals surveyed, 61% use annuities with guaranteed income to manage investment risk for clients in retirement. Annuities may complement traditional strategies by providing protection options, growth opportunities and income, especially when tailored to a client’s vulnerability profile.

“Another key takeaway from this new survey data is that the widespread use of target date funds as a default option in 401(k) plans can help offset misperceptions held by individual investors,” said Andrew Eschtruth, Director of the Center for Retirement Research at Boston College. “Investors tend to prefer lower stock allocations than professionals recommend due to overly pessimistic views of stock returns and risk, so nudging them toward higher allocations can improve their long-term financial security.”

Financial professionals can learn more about the Index and how to use the tool to better understand their clients’ vulnerability to market risk by downloading Jackson’s white paper, available at www.jackson.com/researchcenter.

About the Study & Security in Retirement Series

The research, fielded between October 15-29, 2024, included online surveys of more than 1,000 investors with at least $100,000 in financial assets between the ages of 48 and 78 years. An additional online survey of 400 financial professionals was conducted between November 4-18, 2024, with respondents being client-facing financial professionals with at least 75 clients.

Jackson’s Security in Retirement Series is a multi-phase research initiative in partnership with the Center for Retirement Research at Boston College designed to provide actionable insights on key risks to retirement security. Previous studies have explored longevity risk, inflation risk and healthcare risk. The next installment will examine policy risk and how uncertainty about the future of Social Security, Medicare, Medicaid, tax policy and the federal deficit influences decision making and shapes public awareness and concern.

To access the full report and additional resources from Jackson’s Security in Retirement Series, as well as other proprietary research materials developed by Jackson on topics that impact the saving and spending habits of Americans, visit www.jackson.com/researchcenter.

ABOUT JACKSON

Jackson® (NYSE: JXN) is committed to helping clarify the complexity of retirement planning—for financial professionals and their clients. Through our range of annuity products, financial know-how, history of award-winning service* and streamlined experiences, we strive to reduce the confusion that complicates retirement planning. We take a balanced, long-term approach to responsibly serving all our stakeholders, including customers, shareholders, distribution partners, employees, regulators and community partners. We believe by providing clarity for all today, we can help drive better outcomes for tomorrow. For more information, visit www.jackson.com.

*SQM (Service Quality Measurement Group) Call Center Awards Program for 2004 and 2006-2024. (Criteria used for Call Center World Class FCR Certification is 80% or higher of customers getting their contact resolved on the first call to the call center (FCR) for 3 consecutive months or more.)

Jackson® is the marketing name for Jackson Financial Inc., Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York).

Jackson, its distributors, and their respective representatives do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used and cannot be used for the purpose of avoiding U.S. federal, state, or local tax penalties. Tax laws are complicated and subject to change. Tax results may depend on each taxpayer’s individual set of facts and circumstances. You should rely on your own independent advisors as to any tax, accounting, or legal statements made herein.

This material should be considered educational in nature and does not take into account your particular investment objectives, financial situations, or needs, and is not intended as a recommendation, offer, or solicitation for the purchase or sale of any product, security, or investment strategy.

Annuities are issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and in New York by Jackson National Life Insurance Company of New York (Home Office: Purchase, New York). Variable annuities are distributed by Jackson National Life Distributors LLC, member FINRA. May not be available in all states, and state variations may apply. These products have limitations and restrictions. Discuss them with your financial professional or contact the Company for more information.

Jackson® is committed to ensuring more Americans in or nearing retirement can benefit from greater clarity and confidence in their financial futures. To better support this important goal, we have partnered with leading academic experts at the Center for Retirement Research at Boston College to launch the Jackson Security in Retirement Series. This multiphase research effort will take a comprehensive look at a range of potential threats to financial security with the goal of helping financial professionals and retirement savers more effectively identify and manage them. Jackson is not affiliated with the Center for Retirement Research at Boston College.

Firm and state variations may apply. Additionally, products may not be available in all states.

*Guarantees are subject to the claims-paying ability of the issuing insurance company.

¹Jackson Financial Inc. is a U.S. holding company and the direct parent of Jackson Holdings LLC (JHLLC). The wholly-owned direct and indirect subsidiaries of JHLLC include Jackson National Life Insurance Company, Brooke Life Insurance Company, PPM America, Inc. and Jackson National Asset Management, LLC.

²Adam Hayes, Investopedia, “Market Risk Definition: How to Deal with Systemic Risk,” July 31, 2024.

³Eric Whiteside, Investopedia, “The 50/30/20 Budget Rule Explained With Examples,” August 22, 2024.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250813154750/en/

Media Contact:
Patrick Rich

Patrick.Rich@Jackson.com

Source: Jackson Financial Inc.

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State insurance regulators are again nibbling around the edges of an actuarial guideline designed to limit unrealistic life illustrations.

Meeting in Minneapolis during the National Association of Insurance Commissioners’ summer meeting, the Life Actuarial Task Force discussed proposed changes to Actuarial Guideline 49-A.

Regulators are determined to limit their amendments to a specific section of AG 49-A to address insurers who are including “historical averages exceeding the maximum illustrated rate and backcasted performance,” as the amendment proposal form reads.

The illustration irregularities were uncovered after regulators reviewed illustrations from 13 companies, explained Ben Slutsker, director of life actuarial valuation at the Minnesota Department of Commerce.

“The disclosure that probably brought up the most concern is for companies that have indices that show historical returns for years before that index existed,” Slutsker said. “There’s concerns over whether that could be back fitting already knowing what history is and it’s being shown to the consumer, who may not see that. Even if there’s markings, footnotes, or whatever it is, that just may not come across. [It] could look very optimistic to consumers.”

Approved in 2020, AG 49-A limits the maximum illustrated rate that insurers can use in policy projections to prevent unrealistic growth assumptions. It includes restrictions on exaggerated benefits from indexed loans, a strategy that previously allowed aggressive return assumptions.

Regulators found that insurers often displayed multiple historical averages over different timeframes, often side-by-side with the maximum illustrated rate, regulators noted. The historical averages were sometimes two to four times the maximum illustrated rate.

In addition to discouraging side-by-side comparisons, regulators aim to standardize the historical period for index components that lack 25 years of historical data. Regulators discussed setting the minimum historical period at five years, but some regulators objected.

Ten years is better than five years because it lessens the chance that an agent could only show a rosy positive result, said Wanchin Chou, chief actuary and deputy assistant commissioner in Connecticut.

‘Systemic threat’

Consumer advocates, as well as law firms, have long had IUL illustrations in their sights. Illustrations showing double-digit returns are often unrealistic and harm retirement savers, critics say. Approved in 2015, AG 49 sought to tamp down illustrations with caps and other restrictions.

Insurers almost immediately got around AG 49 by offering IUL bonuses and multipliers. That led to AG 49-A and AG 49-B in 2023.

The task force exposed its changes for comment following the NAIC spring meeting. Larry Rybka, chairman and CEO of Valmark Financial Group, said indexed universal life abuses is a “systemic threat” to retirement security.

“The evidence is unambiguous: today’s IUL illustrations create expectations that are
mathematically impossible to fulfill under real-world conditions,” Rybka wrote in one of a handful of comment letters on the AG 49-A changes.

“Carriers routinely introduce proprietary indexes with no meaningful track record, illustrated using cherry-picked historical scenarios that would likely constitute fraud under securities regulations,” he added.

The growth of proprietary indices is bothersome to many in the industry. At one time, the S&P 500 was used in almost all index products but came with limited ability to design product features. So, carriers created their own indexes and haven’t looked back.

Since then, more than 160 indices have been created. Unlike the S&P 500, few of them have any solid history to draw from.

‘History’ recreated

With no history to draw from to support illustrations, insurers created “backtested” hypothetical performance from proprietary index components. But critics say this results in misleading illustrations untethered from reality.

Mike Yanacheak is the chief actuary at the Iowa Insurance Division. Illustrations are overused by the industry and not appropriate in many cases, he said.

“I think we, at some point in time, need to ask the question whether or not it’s appropriate to use history to create an expectation of future performance, because I think the answer is resoundingly a ‘No,’ ” Yanacheak said. “But I think we need to ask that to see if there is any constituency in the industry that is willing to support that. If there is, then I want to hear it.”

The task force re-exposed the amendment changes for comments on the five- or 10-year minimum history requirement for backtesting.

© Entire contents copyright 2025 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

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NASHVILLE – Going back to school is an exciting and stressful time for students, educators, and parents.

As the school year gets underway across the Volunteer State, the Tennessee Department of Commerce and Insurance (“TDCI”) reminds consumers that education doesn’t stop in the classroom. TDCI’s Division of Insurance offers insurance tips and reminders to help make your back-to-school season go smoothly.

“As the parent of three young children, I know the back-to-school season can be hectic for students, parents, and educators alike,” said TDCI Commissioner Carter Lawrence. “During this busy time of year, I want to encourage Tennesseans to take a moment and consider our insurance tips, which I hope might provide greater peace of mind all year long. Individuals who have insurance questions should contact our team for assistance.”

Insuring a Teen Driver? Know The Facts.

If a teenager lives with his or her parents or legal guardians and doesn’t own the vehicle, the teen can stay on their parents or guardian’s insurance policy.

Review current deductibles to determine if the deductible is affordable, should an individual need to pay it. On older vehicles, consider lowering or eliminating physical damage unless a lienholder, such as a bank, requires it.

To help lower insurance costs, you can increase deductibles and have the teen drive the oldest vehicle to help lower insurance costs. Consult your licensed insurance agent to learn more.

SUVs, convertibles, and sports cars often come with higher insurance premiums.

Several insurance companies offer discounts to students with high grade point averages.

Auto accidents happen. Be prepared!

Unfortunately, sometimes accidents happen. If a driver is involved in an accident, remember the following tips:

If someone is injured, call 9-1-1 immediately to request an ambulance. Make sure an officer comes to file a police report. This helps the insurance company process the claim.

Take pictures of the damage to submit once the individual contacts the auto insurance company to start the claim filing process.

Take the car to an auto shop—either one recommended by the insurer or a shop you prefer.

An adjuster will look at the vehicle to assess the damages.

The auto insurance company will determine how much to give toward repairs or, if a total loss, a new vehicle.

Coverage for College Students

College students who are away from home also need to be prepared. Remember:

Students can stay on their parents’ health insurance plan until they turn 26 years old.

Find a doctor and health facility in the area that are in-network with the health plan.

Keep auto insurance policies up to date. If the college student will not drive for a year, take them off the policy. If the student will drive, keep them on the policy.

If they have a car, make sure they always keep their auto insurance card with them or on their mobile device.

Homeowners’ insurance policies may cover a student’s belongings in a dorm or apartment may be covered by his or her parents’ homeowners policy. Ask your agent if the policy covers these items.

Talk About Life Insurance

As your life and your family changes, you should make sure your life insurance coverage is keeping pace. When it comes to life insurance coverage, we remind consumers to remember the following tips:

Check your policies once a year to make sure that all beneficiaries are included and that the contact information for those listed beneficiaries is correct.

Let your beneficiaries know about the policies. Good communication can save everyone time and reduce confusion in the long run.

Provide beneficiaries or trusted advisors (such as accountants and attorneys) with the name of the life insurance company holding the policy.

Need help locating a loved one’s life insurance policy? In 2024, the Life Insurance Policy Locator Service located over $87.67 million in insurance policies and benefits in 2024. Get more details here.

Unfairly Denied an Insurance Claim?

If your family experiences a claim denial, claim delay, or settlement disagreement, you can always file a complaint with our team. TDCI’s Consumer Insurance Services team serves to mediate claims between policyholders and insurers. If you have questions about consumer insurance, visit our website at www.tn.gov/commerce/insurance-division.html or contact us at 1-800-342-4029 or 615-741-2218.

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The great wealth transfer is reshaping the financial landscape, as Cerulli Associates estimates that $124 trillion is set to transfer through 2048.  The implications for the financial services industry are vast.

Generation X ($39 trillion) and millennials ($46 trillion) will be inheriting substantial sums of money, while widowed women in the baby boomer and older generations will receive a projected $40 million in spousal transfers.

Northwestern Mutual’s 2025 Planning & Progress Study found more than 50% of consumers expecting an inheritance see it as “critical” to their long-term financial security. That said, studies show that 70% of affluent families lose their wealth by the second generation, and 90% by the third.

With the ongoing wealth transfer underway, there is a growing need for financial education and planning tools to preserve wealth across generations. Families must be able to protect and maximize inherited wealth through steps such as mitigating estate taxes, ensuring financial continuity for heirs, and supporting business succession.

Douglas Benson Jr., wealth management advisor with Benson Wealth Management, Northwestern Mutual Private Client Group, in Ankeny, Iowa, told InsuranceNewsNet that clients often struggle with spending and gifting due to concerns about running out of money. He uses strategies such as life insurance, irrevocable life insurance trusts and spousal lifetime access trusts to manage estate taxes and ensure wealth transfer.

Benson said between 60% and 65% of his clientele are business owners, with the remainder being W-2 professionals. They come to him for advice on estate planning as well as for advice on how to spend the money they have accumulated for their retirement while leaving wealth for the next generation.

Planning creates opportunity

“Any advisor worth a grain of salt can help you with an investment strategy or sell you some type of insurance contract,” he said. “But where does that fit in the context of what you’re trying to accomplish, and what are they helping you with outside of the obvious? So the true advisor alpha, in my opinion, comes through planning. And through planning, you create a lot of opportunity.”

Clients who are retirement age and older find it difficult to spend the money they amassed during their working years, Benson said, because they worry about running out of money. And it doesn’t matter how much money they saved. “We have clients with enough capital to support many generations, and they’re still worried about running out of money. And they struggle to spend it.”

Financial planning can give these clients clarity on how much they can spend while still leaving something to their children and grandchildren.

“We also share with them that the utility of money goes down as we get older,” he said. “So sometimes it’s not the best strategy to die at 100 and leave a big tip on the way out. If you lie to be 100, your kids might be around age 70. If they’re anything like you, they’re probably going to be good savers, and they’ll appreciate the money, but they may not need it. But when your kids are 30 and they have young children, and daycare costs five grand a month, and health insurance is $1,500 a month – if we can start thinking about gifting today, while you’re alive and your kids are relatively young and the utility of capital to them is extremely high, they will really value it and you’ll get to see them appreciate it.”

Planning is at the heart of wealth transfer

Planning is at the heart of a wealth transfer strategy. Benson said the plan begins with making sure the client will have enough money for life. After that, it’s time to employ a strategy to transfer wealth to the next generation. Life insurance is one such strategy.

“The beauty of life insurance is if you have a $5 million death benefit, for example, that gives you the permission to spend down more of your money freely, knowing that when you’re dead, you’re going to leave $5 million to the kids regardless of how much money you have left,” he said.

An irrevocable life insurance trust or a spousal lifetime access trust are other wealth transfer strategies.

“When we locate the life insurance outside of the taxable state, we have that $5 million and now that $5 million is outside. If you have assets that are in your taxable estate, the life insurance tax is a good financing mechanism to pay the estate tax, so your kids don’t have to sell assets to pay the tax,” he said.

Other tools to transfer wealth

Other wealth transfer tools that Benson employs include:

• The annual exclusion, currently at $19,000. “Sometimes a client says they want to help out a child with a down payment on a house, for example, so they’ll just gift them cash.”

• Appreciated securities. “If we’re managing their nonqualified investment portfolio, we’ll go in and cherry-pick a security with a low basis, highest amount, a lot of appreciation. And if we gift that to their child, and we’re working with the child and their CPA and we identify that they’re in a 10% to 12% tax rate they can gift that security and the kid sells it. And if they’re in a 10% to 12% tax rate, they don’t pay capital gains tax.”

• Revocable trust. “It’s a powerful tool to keep assets out of probate.”

Benson advised working with the client’s attorney and accountant to plan for income tax and estate tax. “We’re here to orchestrate the plan, come up with ideas, be the thought leader, then ultimately bring in the estate planning attorney and the CPA to make sure we’re all working together as a team to ultimately put the client in the best position.”

© Entire contents copyright 2025 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

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With about 28% of U.S. adults now holding some form of cryptocurrency, Zac Townsend believes it is time to consider a bitcoin life insurance policy as part of a protection plan.

Townsend founded Meanwhile, the world’s first and only bitcoin life insurance company. Meanwhile is the only licensed and government-regulated life insurer that is fully denominated and operating in bitcoin. The firm’s flagship product, bitcoin whole life, offers long-term protection and bitcoin-based savings.

Meanwhile was founded in 2022 in Bermuda, where Townsend said life insurance is referred to as “long-term insurance.”

“I think that is a good emphasis on how it’s really about long-term savings and protection,” he told InsuranceNewsNet.

Meanwhile wrote its first life insurance policy in November 2023.

Townsend has a fintech background. He and Meanwhile’s cofounder were interested in how to use technology to build a global, tech-first insurance company. After considering several ideas, they looked at bitcoin.

“We believe bitcoin will be a long-term, durable store of value and there will be more economic systems inside or denominated in bitcoin,” he said.

Meanwhile started out selling coverage to high net worth individuals, and Townsend he plans to eventually take the company downmarket and serve more consumers globally.

Meanwhile sells online

The company sells its whole life product online.

“Like a lot of offshore direct insurers, we primarily operate under sort of reverse solicitation. So people hear about us – that could be word of mouth,” Townsend said. “We also have some third-party distribution through agencies that specialize in serving high net worth individuals and have an offshore agency. But primarily, people hear about us, they go to our website and then they buy the policy.”

Meanwhile’s bitcoin whole life policy is a 10-pay product with premiums paid in bitcoin and the death benefit paid in bitcoin.

“We often ask customers the question, would you want your beneficiaries to get up to $1.5 million or would you prefer they get 15 bitcoin?” Townsend said. “There are many people in the world who would say, ‘I want the $1.5 million. Don’t give me those magic beans.’ Those people aren’t our customers. The people who are our customers are those who believe 15 bitcoin will be worth a lot more in the future.”

Serving those who already believe in bitcoin

Meanwhile’s target customers are 35- to 55-year-old men “who already believe in bitcoin,” Townsend said.

“We don’t see it as our mission to convince people to buy bitcoin. We see it as our mission to serve people who already decided to buy bitcoin and then provide this protection product,” he said.

Townsend said Meanwhile’s customer base can be split into two groups.

“One is native to bitcoin or crypto. They tend to be a little younger but they’re ‘growing up.’ A lot of them bought bitcoin in 2015 when they were 25 years old without a lot going on in their lives and now they are getting married, having children, thinking about life through the lens that leads you to life insurance.

“The second group is more classically high net worth individuals. They are business owners and entrepreneurs, people with family offices. They’ve made a decision to own cryptocurrency for inflation risk reasons or currency risk or whatever other reasons, and then they find us because they’re looking for a way to hold that asset that isn’t just in their brokerage account. They might have private placement life insurance, or they might have a high coverable life. So having part of that protection or savings in bitcoin makes a lot of sense.”

Townsend said Meanwhile is beginning to work with carriers that are interested in offering products that are indexed to the price of bitcoin or have some bitcoin-exclusive manager.

“A lot of carriers globally are starting to think, maybe we should tell our customers that they should have a certain amount of exposure to bitcoin in in these products, and we’re working to facilitate that.”

© Entire contents copyright 2025 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

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The Pennsylvania Insurance Department (PID) today announced that the 2026 rate changes requested by insurance companies currently operating in Pennsylvania’s individual and small group markets are now available online. On average, all Pennsylvania health insurers are requesting premium increases in plan year 2026: 19% increase to premiums in the individual market (for people who buy their own insurance), and a 13% increase to premiums in the small group market (for small businesses).

“This year, even more than previous years, Pennsylvanians should consider shopping around to find the best plans to meet their individual needs, at a price that makes sense for their current financial situation,” said Pennsylvania Insurance Commissioner Michael Humphreys. “Pennsylvania is fortunate to have a competitive health insurance marketplace with many plan options to choose from, and Pennie makes it easy to shop for plans that cover specific providers and medications. So, despite the increase in cost, PID is confident consumers will have numerous affordable insurance plans to choose from during Open Enrollment.”

The requested rate increases for Plan Year 2026 as filed by insurers are results of:

The rising cost of health care;

The higher use of benefits, including for more expensive outpatient services and medication; and

The end of the Enhanced Premium Tax Credits (Tax Credits), which are set to expire on December 31, 2025, unless Congress acts to extend them.

Insurance companies offering individual and small group health insurance plans are required to file proposed rates with PID for review and approval before plans can be sold to consumers, serving as an important consumer protection. The proposed rates reflect the expected claims and operational costs for the upcoming year. PID reviews rates to ensure that the rates are not excessive or inadequate – and are not unfairly discriminatory. The premiums consumers are charged will be based on the rates that are approved after review.

Public comment on rate requests and filings will be accepted through September 2, 2025, and can be emailed to ra-in-comment@pa.gov.

Rate filings for 2026 health insurance plans were submitted to PID on May 15, 2025. Proposed rate changes vary by plan and region and are subject to change as the department conducts its review process. Final approved rates will be made public in the fall.

Insurers who are currently selling in the individual market that propose selling plans in 2026 have filed plans requesting an average statewide increase of 19%. The rates are rounded to the nearest tenth and vary by region:

Ambetter Health of Pennsylvania Inc: Average rate increase request 30.1% (rating areas 1, 2, 3, 4, 5, 6, 7, 8, and 9);

Capital Advantage Assurance Company: Average rate increase request 26%; (rating areas 6,7 and 9);

Geisinger Health Plan: Average rate increase request 14.1% (rating areas 2,3,5,6,7 and 9);

Geisinger Quality Options: Average rate increase request 16.2% (rating areas 2,3,5,6,7 and 9);

Health Partners Plans “Jefferson Health Plans”: Average rate increase request 7.3% (rating areas 3, 6 and 8);

Highmark Benefits Group Inc.: Average rate increase request 18% (rating areas 3 and 8);

Highmark Coverage Advantage Inc.: Average rate increase request 14.1% (rating areas 1 and 4);

Highmark Inc.: Average rate increase request 17.2% (rating areas 1,2,4,5,6,7 and 9);

Independence Blue Cross (QCC Ins. Co.): Average rate increase request 16.7% (rating area 8);

Keystone Health Plan Central: Average rate increase request 27.9% (rating areas 6,7 and 9);

Keystone Health Plan East Inc.: Average rate increase request 23.5% (rating area 8);

Oscar Health Plan of PA: Average rate increase request 22% (rating Areas 3, 6, 7 and 8);

Partners Insurance Company Inc.: Average rate increase request -10.1% (rating area 3, 6, and 8);

UPMC Health Options Inc.: Average rate increase request 11.7% (rating areas 1,2,3,4,5,6,7 and 9); and

UPMC Health Plan Inc.: Average rate increase request 16.3% (rating areas 1 and 5).

Ambetter is a new plan for Centene in the individual market, transitioning from the previous plan, Pennsylvania Health & Wellness. UPMC Health Plan is a new plan for UPMC in the individual market, transitioning from the previous plan, UPMC Health Coverage.

Insurers in Pennsylvania’s small group market have filed 2026 plans requesting an average statewide increase of 13%.

Capital Advantage Assurance Company: Average rate increase request 17.6% (rating areas 6 ,7, and 9);

Geisinger Health Plan: Average rate increase request 11.4% (rating areas 2, 3, 5, 6, 7, and 9);

Geisinger Quality Options: Average rate increase request 12.5% (rating areas 2, 3, 5, 6, 7, and 9);

Highmark Inc.: Average rate increase request 15.7% (rating areas 1, 2, 4, 5, 6, 7, and 9);

Highmark Benefits Group: Average rate increase request 16.6% (rating areas 6, 7, and 9);

Highmark Care Benefits: Average rate increase request 22.5% (rating area 3);

Highmark Coverage Advantage: Average rate increase request 17% (rating areas 1, 2, 4, 5, and 6);

Highmark Senior Health Company: Average rate increase request 12.3% (rating area 8);

Independent Assurance Company: Average rate increase request 11% (rating area 8);

Keystone Health Plan Central: Average rate increase request 17.6% (rating areas 6, 7, and 9);

Keystone Health Plan East/AmeriHealth HMO Inc.: Average rate increase request 16.7% (rating area 8);

UnitedHealthcare Insurance Company: Average rate request 10.7% (rating areas 1, 2, 3, 4, 5, 6, 7, 8, and 9);

UnitedHealthcare of PA: Average rate increase request 20% (rating areas 1, 2, 3, 4, 5, 6, 7, 8, and 9);

UPMC Health Benefits: Average rate increase request 6.5% (rating areas 1 and 5);

UPMC Health Options Inc.: Average rate increase request 8.9% (rating areas 1, 2, 4, and 5); and

UPMC Health Plan Inc.: Average rate increase request 8.2% (rating areas 1, 2, 4, and 5).

UPMC Health Plan is a new plan for UPMC in the small group market, transitioning from the previous plan, UPMC Health Coverage. Highmark Care Benefits is a new plan for Highmark in the small group market, transitioning from the previous plan, First Priority Life Insurance Company.

For more details about the ACA Rate Filings, visit PID’s website.

Follow PID on X and like the Department on Facebook.

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• Estimated combined risk-based capital (“RBC”) ratio between 405% and 425%; holding company liquid assets of $0.9 billion
• The company repurchased $102 million of its common stock year-to-date through June 30, 2025
• Annuity sales of $2.6 billion, including $1.9 billion in sales of the company’s flagship Shield Level Annuities
• Life sales of $33 million, primarily driven by sales of Brighthouse SmartCare
• Net income available to shareholders of $60 million, or $1.02 per diluted share
• Adjusted earnings, less notable items*, of $198 million, or $3.43 per diluted share

CHARLOTTE, N.C.–(BUSINESS WIRE)–
Brighthouse Financial, Inc. (“Brighthouse Financial” or the “company”) (Nasdaq: BHF) announced today its financial results for the second quarter ended June 30, 2025.

Second Quarter 2025 Results

The company reported net income available to shareholders of $60 million in the second quarter of 2025, or $1.02 per diluted share, compared with net income available to shareholders of $9 million in the second quarter of 2024, or $0.12 per diluted share. The company anticipates volatility in net income (loss) given the differences between its hedge target and GAAP reserves, which are impacted by market performance.

The company ended the second quarter of 2025 with common stockholders’ equity (“book value”) of $4.0 billion, or $69.57 per common share, and book value, excluding accumulated other comprehensive income (“AOCI”) of $8.2 billion, or $144.09 per common share.

For the second quarter of 2025, the company reported adjusted earnings* of $198 million, or $3.43 per diluted share, compared with adjusted earnings of $346 million, or $5.57 per diluted share, for the second quarter of 2024.

Corporate expenses in the quarter were $202 million, up from $200 million in the second quarter of 2024 and down from $239 million in the first quarter of 2025, all on a pre-tax basis.

The company’s annuity sales increased 8% quarter-over-quarter and 16% sequentially, primarily driven by higher sales of fixed annuities, partially offset by lower sales of Shield Level Annuities. While total annuity sales decreased 8% in the first half of 2025 compared with the same period in 2024, sales of Shield Level Annuities were relatively flat. Life sales increased 18% quarter-over-quarter, decreased 8% sequentially and increased 21% in the first half of 2025 compared with the same period in 2024.

During the second quarter of 2025, the company repurchased $43 million of its common stock, bringing total year-to-date common stock repurchases to $102 million.

“I am pleased that we ended the quarter with an estimated combined RBC ratio that was within our target range of 400% to 450% in normal market conditions,” said Eric Steigerwalt, president and CEO, Brighthouse Financial. “Additionally, we maintained a robust level of holding company liquid assets, prudently managed our expenses and delivered strong total annuity sales, which increased 8% quarter-over-quarter and 16% sequentially.”

Annuities

Adjusted earnings in the Annuities segment were $332 million in the current quarter, compared with adjusted earnings of $332 million in the second quarter of 2024 and adjusted earnings of $314 million in the first quarter of 2025.

There were no notable items in the current quarter or the second quarter of 2024. The first quarter of 2025 included a $10 million unfavorable notable item.

On a quarter-over-quarter basis, adjusted earnings, less notable items, were flat. On a sequential basis, adjusted earnings, less notable items, reflect lower expenses, partially offset by lower fees.

As mentioned above, the company’s annuity sales increased 8% quarter-over-quarter and 16% sequentially, primarily driven by higher sales of fixed annuities, partially offset by lower sales of Shield Level Annuities. While total annuity sales decreased 8% in the first half of 2025 compared with the same period in 2024, sales of Shield Level Annuities were relatively flat.

Life

The Life segment had an adjusted loss of $26 million in the current quarter, compared with adjusted earnings of $42 million in the second quarter of 2024 and adjusted earnings of $9 million in the first quarter of 2025.

There were no notable items in the current quarter or the comparison quarters.

On a quarter-over-quarter basis, the adjusted loss reflects a lower underwriting margin and lower net investment income. On a sequential basis, the adjusted loss reflects a lower underwriting margin and lower net investment income, partially offset by lower expenses.

As mentioned above, the company’s life sales increased 18% quarter-over-quarter, decreased 8% sequentially and increased 21% in the first half of 2025 compared with the same period in 2024.

Run-off

The Run-off segment had an adjusted loss of $83 million in the current quarter, compared with an adjusted loss of $30 million in the second quarter of 2024 and an adjusted loss of $64 million in the first quarter of 2025.

There were no notable items in the current quarter or the comparison quarters.

On a quarter-over-quarter basis, the adjusted loss reflects lower net investment income and a lower underwriting margin, partially offset by lower expenses. On a sequential basis, the adjusted loss reflects a lower underwriting margin, partially offset by higher net investment income and lower expenses.

Corporate & Other

The Corporate & Other segment had an adjusted loss of $25 million in the current quarter, compared with adjusted earnings of $2 million in the second quarter of 2024 and an adjusted loss of $24 million in the first quarter of 2025.

There were no notable items in the current quarter or the comparison quarters.

On a quarter-over-quarter basis, the adjusted loss reflects lower net investment income and a lower tax benefit. On a sequential basis, results were relatively flat.

Net Investment Income

Net investment income was $1,285 million and adjusted net investment income* was $1,292 million in the current quarter. Adjusted net investment income decreased $24 million on a quarter-over-quarter basis and was relatively flat sequentially. The quarter-over-quarter decrease was primarily driven by lower alternative investment income.

The adjusted net investment income yield* was 4.28% during the quarter.

Capitalization

As of June 30, 2025:

• Statutory combined total adjusted capital⁽¹⁾ was $5.6 billion
• Estimated combined RBC ratio⁽¹⁾ was between 405% and 425%
• Holding company liquid assets were $0.9 billion

Earnings Conference Call

Brighthouse Financial will hold a conference call and audio webcast to discuss its financial results for the second quarter of 2025 at 8:00 a.m. Eastern Time on Friday, August 8, 2025. In connection with this call, the company has prepared a presentation for use with investors and other members of the investment community. This presentation is available on the Brighthouse Financial Investor Relations webpage at http://investor.brighthousefinancial.com.

To listen to the audio webcast via the internet and to access the related presentation, please visit the Brighthouse Financial Investor Relations webpage at http://investor.brighthousefinancial.com. To join the conference call via telephone as a participant, please register in advance at https://register-conf.media-server.com/register/BI0e5e7b738d2d4c2799d094cbd8412c06.

A replay of the conference call will be made available until Friday, August 22, 2025, on the Brighthouse Financial Investor Relations webpage at http://investor.brighthousefinancial.com.

About Brighthouse Financial, Inc.

Brighthouse Financial, Inc. (Brighthouse Financial) (Nasdaq: BHF) is on a mission to help people achieve financial security. As one of the largest providers of annuities and life insurance in the U.S.,⁽¹⁾ we specialize in products designed to help people protect what they’ve earned and ensure it lasts. Learn more at brighthousefinancial.com.

Note Regarding Forward-Looking Statements

This news release and other oral or written statements that we make from time to time may contain information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve substantial risks and uncertainties. We have tried, wherever possible, to identify such statements using words such as “anticipate,” “estimate,” “expect,” “project,” “may,” “will,” “could,” “intend,” “goal,” “target,” “guidance,” “forecast,” “preliminary,” “objective,” “continue,” “aim,” “plan,” “believe” and other words and terms of similar meaning, or that are tied to future periods, in connection with a discussion of future operating or financial performance. In particular, these include, without limitation, statements relating to future actions, prospective services or products, financial projections, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, as well as trends in operating and financial results.

Any or all forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining the actual future results of Brighthouse Financial. These statements are based on current expectations and the current economic environment and involve a number of risks and uncertainties that are difficult to predict. These statements are not guarantees of future performance. Actual results could differ materially from those expressed or implied in the forward-looking statements due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others: differences between actual experience and actuarial assumptions and the effectiveness of our actuarial models; higher risk management costs and exposure to increased market risk due to guarantees within certain of our products; the effectiveness of our risk management strategy and the impacts of such strategy on volatility in our profitability measures and the negative effects on our statutory capital; material differences between actual outcomes and the sensitivities calculated under certain scenarios that we may utilize in connection with our risk management strategies; the impact of interest rates on our future universal life with secondary guarantees (“ULSG”) policyholder obligations and net income volatility; the potential material adverse effect of changes in accounting standards, practices or policies applicable to us, including changes in the accounting for long-duration contracts; loss of business and other negative impacts resulting from a downgrade or a potential downgrade in our financial strength or credit ratings; the availability of reinsurance and the ability of the counterparties to our reinsurance or indemnification arrangements to perform their obligations thereunder; heightened competition, including with respect to service, product features, product mix, scale, price, actual or perceived financial strength, claims-paying ratings, credit ratings, e-business capabilities and name recognition; our ability to market and distribute our products through distribution channels and maintain relationships with key distribution partners; any failure of third parties to provide services we need, any failure of the practices and procedures of such third parties and any inability to obtain information or assistance we need from third parties; the ability of our subsidiaries to pay dividends to us, and our ability to pay dividends to our shareholders and repurchase our common stock; the risks associated with climate change; the adverse impact of public health crises, extreme mortality events or similar occurrences on our business and the economy in general; the impact of adverse capital and credit market conditions, including with respect to our ability to meet liquidity needs and access capital; the impact of economic conditions in the capital markets and the U.S. and global economy, as well as geopolitical events, tariffs imposed or threatened by the U.S. or foreign governments, military actions or catastrophic events, on our profitability measures as well as our investment portfolio, including on realized and unrealized losses and impairments, net investment spread and net investment income; the financial risks that our investment portfolio is subject to, 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 impact of changes in regulation and in supervisory and enforcement policies or interpretations thereof on our insurance business or other operations; the potential material negative tax impact of potential future tax legislation that could make some of our products less attractive to consumers or increase our tax liability; the effectiveness of our policies, procedures and processes in managing risk; the loss or disclosure of confidential information, damage to our reputation and impairment of our ability to conduct business effectively as a result of any failure in cyber- or other information security systems; whether all or any portion of the tax consequences of our separation from MetLife, Inc. are not as expected, leading to material additional taxes or material adverse consequences to tax attributes that impact us; and other factors described from time to time in documents that we file with the U.S. Securities and Exchange Commission (the “SEC”).

For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements included and the risks, uncertainties and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 2024, particularly in the sections entitled “Risk Factors” and “Quantitative and Qualitative Disclosures About Market Risk,” as well as in our other subsequent filings with the SEC. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.

Non-GAAP and Other Financial Disclosures

Our definitions of non-GAAP and other financial measures may differ from those used by other companies.

Non-GAAP Financial Disclosures

We present certain measures of our performance that are not calculated in accordance with accounting principles generally accepted in the United States of America, also known as “GAAP.” We believe that these non-GAAP financial measures enhance the understanding of our performance by the investor community by highlighting the results of operations and the underlying profitability drivers of our business.

The following non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP:

Reconciliations to the most directly comparable historical GAAP measures are included for those measures which are presented herein. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are not accessible on a forward-looking basis because we believe it is not possible without unreasonable efforts to provide other than a range of net investment gains and losses and net derivative gains and losses, which can fluctuate significantly within or outside the range and from period to period and may have a material impact on net income (loss) available to shareholders.

Adjusted Earnings, Adjusted Revenues and Adjusted Expenses

Adjusted earnings is a financial measure used by management to evaluate performance and facilitate comparisons to industry results. This financial measure, which may be positive or negative, focuses on our primary businesses by excluding the impact of market volatility, which could distort trends. Adjusted earnings was updated during the first quarter of 2025 in connection with the establishment of a trading portfolio comprised of certain fixed income securities. The company did not have trading securities prior to the first quarter of 2025.

Adjusted earnings reflect adjusted revenues less (i) adjusted expenses, (ii) provision for income tax expense (benefit), (iii) net income (loss) attributable to noncontrolling interests and (iv) preferred stock dividends. Provided below are the adjustments to GAAP revenues and GAAP expenses used to calculate adjusted revenues and adjusted expenses, respectively.

The following items are excluded from total revenues in calculating the adjusted revenues component of adjusted earnings:

• Net investment gains (losses);
• Investment gains (losses) on trading securities measured at estimated fair value through net investment income; and
• Net derivative gains (losses) (“NDGL”), excluding earned income and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment (“Investment Hedge Adjustments”).

The following items are excluded from total expenses in calculating the adjusted expenses component of adjusted earnings:

• Change in market risk benefits; and
• Change in fair value of the crediting rate on experience-rated contracts and market value adjustments on institutional group annuities that are economically offset by gains (losses) on the related trading securities (“Market Value Adjustments”).

The provision for income tax related to adjusted earnings is calculated using the statutory tax rate of 21%, net of impacts related to the dividends received deduction, tax credits and current period non-recurring items.

Consistent with GAAP guidance for segment reporting, adjusted earnings is also our GAAP measure of segment performance.

Adjusted Earnings per Common Share and Adjusted Return on Common Equity

Adjusted earnings per common share and adjusted return on common equity are measures used by management to evaluate the execution of our business strategy and align such strategy with our shareholders’ interests.

Adjusted earnings per common share is defined as adjusted earnings for the period divided by the weighted average number of fully diluted shares of common stock outstanding for the period. The weighted average common shares outstanding used to calculate adjusted earnings per share will differ from such shares used to calculate diluted net income (loss) available to shareholders per common share when the inclusion of dilutive shares has an anti-dilutive effect for one calculation but not for the other.

Adjusted return on common equity is defined as total annual adjusted earnings on a four quarter trailing basis, divided by the simple average of the most recent five quarters of total Brighthouse Financial, Inc.’s common stockholders’ equity, excluding AOCI.

Adjusted Net Investment Income

Adjusted net investment income is used by management to measure our performance, and we believe it enhances the understanding of our investment portfolio results. Adjusted net investment income represents GAAP net investment income plus Investment Hedge Adjustments less investment gains (losses) on trading securities.

Adjusted Net Investment Income Yield

Similar to adjusted net investment income, adjusted net investment income yield is used by management as a performance measure that we believe enhances the understanding of our investment portfolio results. Adjusted net investment income yield represents adjusted net investment income as a percentage of average quarterly asset carrying values. Asset carrying values exclude unrealized gains (losses), collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties. Investment fee and expense yields are calculated as a percentage of average quarterly asset estimated fair values. Asset estimated fair values exclude collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties.

Other Financial Disclosures

Corporate Expenses

Corporate expenses includes functional department expenses, public company expenses, certain investment expenses, retirement funding and incentive compensation.

Notable Items

Certain of the non-GAAP measures described above may be presented further adjusted to exclude notable items. Notable items reflect the unfavorable (favorable) after-tax impact on our results of certain unanticipated items and events, as well as certain items and events that were anticipated. The presentation of notable items and non-GAAP measures, less notable items is intended to help investors better understand our results and to evaluate and forecast those results.

Book Value per Common Share and Book Value per Common Share, excluding AOCI

Brighthouse uses the term “book value” to refer to “Brighthouse Financial, Inc.’s common stockholders’ equity, including AOCI.” Book value per common share is defined as ending Brighthouse Financial, Inc.’s common stockholders’ equity, including AOCI, divided by ending common shares outstanding. Book value per common share, excluding AOCI, is defined as ending Brighthouse Financial, Inc.’s common stockholders’ equity, excluding AOCI, divided by ending common shares outstanding.

CTE70

CTE70 is defined as the amount of assets required to satisfy contract holder obligations across market environments in the average of the worst thirty percent of a set of capital market scenarios over the life of the contracts.

CTE98

CTE98 is defined as the amount of assets required to satisfy contract holder obligations across market environments in the average of the worst two percent of a set of capital market scenarios over the life of the contracts.

Holding Company

Holding company means, collectively, Brighthouse Financial, Inc., Brighthouse Holdings, LLC, and Brighthouse Services, LLC.

Holding Company Liquid Assets

Holding company liquid assets include liquid assets in Brighthouse Financial, Inc., Brighthouse Holdings, LLC, and Brighthouse Services, LLC. Liquid assets are comprised of cash and cash equivalents, short-term investments and publicly-traded securities, excluding assets that are pledged or otherwise committed. Assets pledged or otherwise committed include assets held in trust.

Total Adjusted Capital

Total adjusted capital primarily consists of statutory capital and surplus, as well as the statutory asset valuation reserve. When referred to as “combined,” represents that of our insurance subsidiaries as a whole.

Sales

Life insurance sales consist of 100 percent of annualized new premium for term life, first-year paid premium for whole life, universal life, and variable universal life, and total paid premium for indexed universal life. We exclude company-sponsored internal exchanges, corporate-owned life insurance, bank-owned life insurance, and private placement variable universal life.

Annuity sales consist of 100 percent of direct statutory premiums, except for fixed index annuity sales, which represents 100 percent of gross sales on directly written business and the proportion of assumed gross sales under reinsurance agreements. Annuity sales exclude certain internal exchanges. These sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity.

Normalized Statutory Earnings (Loss)

Normalized statutory earnings (loss) is used by management to measure our insurance companies’ ability to pay future distributions and incorporates the effectiveness of our hedging program as well as other factors related to our business. Normalized statutory earnings (loss) is calculated as statutory pre-tax net gain (loss) from operations adjusted for the favorable or unfavorable impacts of (i) net realized capital gains (losses) before capital gains tax (excluding gains (losses) and taxes transferred to the interest maintenance reserve), (ii) the change in total asset requirement at CTE98, net of the change in our variable annuity reserves, which are calculated at CTE70, and (iii) pre-tax unrealized gains (losses) associated with our variable annuities and Shield hedges, net of reinsurance, and other equity risk management strategies. Normalized statutory earnings (loss) may be further adjusted for certain unanticipated items that impact our results in order to help management and investors better understand, evaluate and forecast those results.

Risk-Based Capital Ratio

The risk-based capital ratio is a method of measuring an insurance company’s capital, taking into consideration its relative size and risk profile, in order to ensure compliance with minimum regulatory capital requirements set by the National Association of Insurance Commissioners. When referred to as “combined,” represents that of our insurance subsidiaries as a whole. The reporting of our combined risk-based capital ratio is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250807048310/en/

FOR INVESTORS
Dana Amante

(980) 949-3073

damante@brighthousefinancial.com

FOR MEDIA
Deon Roberts

(980) 949-3071

deon.roberts@brighthousefinancial.com

Source: Brighthouse Financial, Inc.

The post Brighthouse Financial Announces Second Quarter 2025 Results appeared first on Insurance News | InsuranceNewsNet.

Exclusive index annuity leverages innovative interest credit overlay with a 200% multiplier to provide enhanced growth potential alongside principal protection

HOUSTON–(BUSINESS WIRE)–
Corebridge Financial today announced the launch of Power Select AICO^SM, a new index annuity that expands the strong partnership between Corebridge and Market Synergy Group (MSG), one of the nation’s largest networks of independent marketing organizations. Power Select AICO is designed to provide enhanced growth potential with an Additional Interest Credit Overlay (AICO) feature that no other index annuity offers in today’s market.

“We are excited to build on our long-standing partnership with Market Synergy Group and introduce a next generation index annuity designed to strengthen growth and accumulation with no downside market risk,” said Bryan Pinsky, President of Individual Retirement and Life Insurance at Corebridge Financial. “Through its unique interest credit overlay, Power Select AICO can step up earnings by a multiple of 200%, providing important opportunities for growth and diversification, specifically during times of low market returns when other investments in a portfolio may be challenged.”

Power Select AICO is the newest addition to The Power Series of Index Annuities^®, the Corebridge family of index annuities, and is available exclusively through MSG. The new index annuity offers growth potential through index interest accounts linked to the performance of the S&P 500^®, Nasdaq-100^® or a select offering of multi-asset, risk-managed indices, as well as guaranteed growth through a fixed interest account. What makes Power Select AICO truly different from other index annuities is the interest credit overlay, which uses a 200% multiplier to potentially double total interest earned from these accounts over 5 years, subject to a maximum amount.

“Power Select AICO offers the benefits of a traditional index annuity, plus the enhanced growth potential of the overlay credit to help consumers accumulate more assets for retirement,” said Lance Sparks, President, Market Synergy Group. “Power Select AICO provides compelling benefits regardless of the market environment – in down markets the new index annuity offers 100% protection against loss, in weak markets the overlay credit can automatically boost earnings by up to 200%, and in strong markets assets can increase with a percentage of the index gains.”

Power Select AICO is issued by American General Life Insurance Company (AGL), a subsidiary of Corebridge Financial, Inc. Guarantees are backed by the claims-paying ability of AGL.

Power Select AICO is subject to an annual fee of 0.80%. The fee is calculated as a percentage of the premium in the first year and as a percentage of the contract’s prior anniversary value in years 2-5. The fee can reduce the contract value in down markets; however, if an overlay credit is applied at the end of the 5-year withdrawal charge period, it will partially or fully offset those fees. The only times fees are not covered is if the contract value exceeds the maximum overlay amount (30% of net premiums), in which case, consumers will benefit from market performance, not the overlay credit. The overlay feature and fee terminate on the 5th contract anniversary. The 0.80% fee, 200% multiplier rate and 30% maximum overlay percentage are guaranteed and will not change once a contract is issued; however, AGL could make changes in the future for newly issued contracts. See the Owner Acknowledgment and Disclosure Statement for more information.

Diversification does not ensure a profit or protect against market loss.

Index annuities are not a direct investment in the stock market. They are long-term insurance products with guarantees backed by the claims-paying ability of the issuing insurance company. They provide the potential for interest to be credited based in part on the performance of the specified index, without the risk of loss of premium due to market downturns or fluctuations. Index annuities may not be appropriate for all individuals.

Withdrawals may be subject to federal and/or state income taxes. An additional 10% federal tax may apply if individuals make withdrawals or surrender their annuity before age 59½. Individuals should consult their tax advisor regarding their specific situation.

This material is general in nature, was developed for educational use only, and is not intended to provide financial, legal, fiduciary, accounting or tax advice, nor is it intended to make any recommendations. Applicable laws and regulations are complex and subject to change. Please consult with your financial professional regarding your situation. For legal, accounting or tax advice, consult the appropriate professional.

All contract and benefit guarantees, including any fixed account crediting rates or annuity rates, are backed by the claims-paying ability of the issuing insurance company. They are not obligations of or backed by the distributor, insurance agency or any affiliates of those entities and none make any representations or guarantees regarding the claims-paying ability of the issuing insurance company.

Nasdaq^® and Nasdaq-100^® are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by American General Life Insurance Company. Power Select AICO (the “Product”) has not been passed on by the Corporations as to their legality or suitability. The Product is not issued, endorsed, sold or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the Product.

The S&P 500^® Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by American General Life Insurance Company (“AGL”) and affiliates. Standard & Poor’s^®, S&P^® and S&P 500^® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones^® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by AGL and affiliates. AGL and affiliates’ products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of purchasing such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500^® Index.

The Power Select AICO Index Annuity is issued by American General Life Insurance Company (AGL), Houston, Texas. Contract numbers: AG-801 (2/25) and ICC25-AG-801 (2/25). AGL is a member company of Corebridge Financial, Inc. The underwriting risks, financial and contractual obligations and support functions associated with the annuities issued by AGL are its responsibility. AGL does not solicit, issue or deliver policies or contracts in the state of New York. Annuities and riders may vary by state and are not available in all states. This material is not intended for use in the state of New York.

About Corebridge Financial

Corebridge Financial, Inc. (NYSE: CRBG) makes it possible for more people to take action in their financial lives. With more than $415 billion in assets under management and administration as of June 30, 2025, Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures. For more information, visit corebridgefinancial.com and follow us on LinkedIn, YouTube and Instagram.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250807496781/en/

Işıl Müderrisoğlu (Investors): investorrelations@corebridgefinancial.com
Matt Burkhard (Media): media.contact@corebridgefinancial.com

Source: Corebridge Financial

The post Corebridge Financial Partners with Market Synergy Group to Launch Power Select AICO Index Annuity appeared first on Insurance News | InsuranceNewsNet.

HONG KONG–(BUSINESS WIRE)–
AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a” (Excellent) to China United Property Insurance Company (CUPI) (China). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect CUPI’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favourable business profile and appropriate enterprise risk management. The ratings also reflect the expected government support CUPI will receive from its ultimate parent, China Investment Corporation (CIC), the sovereign wealth fund of the Chinese government.

CUPI’s very strong balance sheet strength assessment is underpinned by its very strong level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is projected to remain at a similar while declining level over the short to intermediate term. The company maintains a sizeable capital and surplus of RMB 18.5 billion (USD 2.53 billion) as of year-end 2024 based on AM Best calculation. The company’s comprehensive solvency ratio under C-ROSS Phase II was significantly improved and its financial flexibility was enhanced following the successful issuance of a RMB 6 billion capital supplementary bond in late 2024, while the financial leverage remained at a neutral level. CUPI’s investment portfolio is diversified, primarily consisting of bonds (including bond funds), cash and deposits, as well as listed equities. The company has moderate exposure in the real estate sector and a controlled growth into riskier investment types. Offsetting factors include its relatively high underwriting leverage compared to domestic peers of similar size, its large outstanding premium receivables on its balance sheets predominantly due to policy-driven agriculture insurance business and its exposure to impairments of some legacy investment.

CUPI has remained profitable over the last five years, delivering an annual return on equity in the mid-single-digit range. While the company historically maintains a slightly higher-than-industry growth, which is driven by its non-motor lines of business, CUPI expects its future top-line growth to be largely in line with the industry. The company’s profit was mainly supported by investment income, while its underwriting results were around breakeven. Its investment yield ranged in the low to mid-single-digit range over the last few years, exhibiting some volatility due to capital market conditions. Nonetheless, AM Best expects CUPI to continue delivering positive investment income to support its overall profitability. Overall, CUPI’s operating performance is assessed as adequate.

CUPI’s favorable business profile is supported by its strong government connection, leading position in domestic agriculture insurance, diversified product offering and extensive distributional network. Incorporated in 1986, CUPI is the fifth largest non-life insurer in mainland China, with a market share of around 4% based on 2024 direct premium written. With a long operating history, CUPI has built strong underwriting know-how and customer servicing capabilities. Coupled with its strong ties across government levels, the company continues to maintain a leading position in policy-driven agriculture and short-term health insurance, which accounted for over 30% of its gross premium written in 2024. CUPI maintains a 12% market share in China’s agriculture insurance market, which has become one of the largest agriculture insurance markets globally.

The ratings also recognise the strategic importance of CUPI in providing nationwide inclusive agriculture insurance and support to the country’s national strategies. AM Best believes there is a high likelihood that CIC will provide support to CUPI, if needed. CIC is equipped with sound credit fundamentals and abundant financial resources. AM Best expects CUPI to further benefit from CIC’s implicit support, including operational, risk management, and corporate governance.

Negative rating actions could occur if CUPI’s balance sheet strength were to weaken significantly. A sustained deteriorating trend in underwriting and operating performance also may result in negative rating actions. Although unlikely in the short to intermediate term, positive rating actions could occur if the company demonstrates sustained improvement in balance sheet strength, via non-debt issuance source.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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New Jersey financial professional Jill Van Nostrand submitted a comment letter to the New Jersey Department of Labor and Workforce Development opposing the state’s proposed expansion of the ABC Test for determining independent contractor status. Representing herself, her Main Street clients, and the National Association of Insurance and Financial Advisors of New Jersey (NAIFA-NJ), where she serves as Grassroots Advocacy Chair, Van Nostrand urged the Department to rescind the rule, citing its legal overreach and harmful economic impact.

The proposal puts thousands of independent financial professionals at risk of being misclassified as employees, Van Nostrand wrote, adding that it ignores decades of legal precedent and places unnecessary burdens on highly regulated professionals who are already held to strict compliance standards.

Van Nostrand said the proposal “would have far-reaching consequences,” negatively impacting small business owners, employees, and consumers.  She added:

“The proposal would especially harm New Jersey’s financial-services and insurance industries. In these industries alone, the proposal would risk misclassifying thousands of independent contractors as employers. Many of these contractors will retire or relocate in response. The businesses with which they contract may decide to work with fewer contractors or provide fewer services to consumers to reduce legal risk. All these problems and more are documented in publicly available studies demonstrating the consequences of reclassifying independent contractors as employees. By contrast, the Department has provided the public with zero evidence to justify the boilerplate assertions that the proposal will have no adverse economic consequences.

The post NAIFA-NJ grassroots leader pushes back on proposed independent contractor rule appeared first on Insurance News | InsuranceNewsNet.