Greenlight Capital Sends Letter to Board of Brighthouse Financial Encouraging Engagement with Reported Suitor

Rhea-AI Summary

Greenlight Capital, owning 4.9% of Brighthouse Financial (NASDAQ: BHF), has sent a letter to BHF's Board urging them to accept a reported $70 per share cash offer from Aquarian Holdings, representing a 55% premium to the September 18 closing price.

David Einhorn's firm criticizes BHF's public market performance since its 2017 MetLife spin-off, noting the stock trades at just 32% of book value and 2.1x 2026 consensus EPS, with shares down 30% since the spin-out despite repurchasing 52% of shares. Greenlight threatens potential board replacement if directors don't act on the takeover offer.

Positive

• Reported acquisition offer of $70 per share in cash, representing 55% premium
• Potential for improved operational efficiency under private ownership
• Immediate and certain value realization for shareholders
• Credible buyer with successful track record in insurance acquisitions

Negative

• Stock price 30% lower than 2017 spin-off levels
• Trading at only 32% of book value, down from 56% at spin-off
• Persistent underperformance as a public company
• Opaque accounting and failure to attract investors

Outlines Belief that Going Private, and the Rumored Transaction, are in the Best Interests of All Shareholders

NEW YORK, Sept. 22, 2025 /PRNewswire/ -- Greenlight Capital and its affiliates (collectively, "Greenlight"), holders of approximately 4.9% of the outstanding common stock of Brighthouse Financial, Inc. ("Brighthouse" or the "Company") (NASDAQ: BHF) today sent a letter to the Board of Directors of Brighthouse (the "Board"), encouraging the Board to follow-through on its reported decision to evaluate strategic alternatives by accepting the offer that has apparently been made for the Company by Aquarian Holdings.

The full text of Greenlight's letter is below.

September 22, 2025

Board of Directors
Brighthouse Financial, Inc.
11225 North Community House Road
Charlotte, NC 28277

Ladies and Gentlemen:

Just say "Yes".

As you know, Greenlight Capital (together with its affiliates, "we" or "us") owns approximately 4.9% of the outstanding shares of Brighthouse Financial, Inc. ("Brighthouse" or the "Company"). We have been one of the Company's largest shareholders and most patient supporters since its spin-out from MetLife in 2017.

Based on media reports, we understand that for the past several months, the Company has explored strategic alternatives, including a sale of the Company, and that one credible buyer, Aquarian, has emerged with a final bid of around $70 per share in cash. This bid represents a 55% premium to the closing price on September 18, which itself already incorporated a fair amount of takeover speculation.

We agree wholeheartedly that the time has come to sell the Company.

We believe selling the Company at this price is in the best interests of all shareholders. Throughout its tenure as an independent entity, Brighthouse has been a perennial disappointment for investors. At the time of the spin-out, the Company traded at 56% of book value and 6.4x consensus 2018 EPS. Eight years later, despite repurchasing 52% of its shares, Brighthouse trades at just 32% of book value and 2.1x 2026 consensus EPS. As of September 18, the share price was 30% lower than it was at the time of the spin-out.

It is clear that Brighthouse has not earned the confidence of public market investors. The accounting is notably opaque and the Company has failed to articulate an investment rationale to attract investors. For nearly all of the Company's history, its stock has been rated neutral or negative by most analysts. There is no reason to believe these things will change. In our view, the Company would be better off selling at a significant control premium to private investors, who we believe would be best positioned to drive operating efficiencies and optimize the portfolio.

We therefore urge the Board to follow through on the process it began, engage constructively with the bidder, and move forward expeditiously to close this transaction.

We consider the reported offer highly credible and one that can be consummated with little risk. In fact, if a compelling case were presented to me, I would be willing to participate in a Brighthouse financing, as I firmly believe that Brighthouse can succeed as a private company. I am also impressed with the reported bidder's success in previous insurance company acquisitions.

Importantly, there is no reason to believe that other alternatives, like asset sales, reinsurance transactions or a refreshed business plan as a public company will deliver value to shareholders that is greater than the reported deal price, and certainly not on a risk-adjusted basis.

Brighthouse has now had eight years to succeed in the public markets and it has failed to do so. A sale of the Company would allow shareholders to realize immediate and certain value at a substantial premium, and eliminate the risks inherent in persisting with the status quo or gambling on an unproven new strategy or capital structure. We believe most shareholders would welcome this outcome.

The Board should respond to the reported bidder in a timely and constructive manner and act decisively. If the Board does not act in the best interests of the shareholders, it should expect Greenlight Capital to hold them fully accountable, at a minimum, by giving shareholders an option to replace the entire Board at the next annual meeting.

In the interest of transparency, we intend to make this letter public. We encourage the Board to do the right thing for Brighthouse and all of its stakeholders, and we look forward to continuing to engage with you, as necessary, to progress this process forward.

Sincerely,

David Einhorn
President
Greenlight Capital

About Greenlight Capital

Greenlight Capital is a value-oriented investment firm founded by David Einhorn in 1996 that specializes in identifying undervalued public companies through rigorous fundamental analysis.

Media Contact

Jonathan Gasthalter
Gasthalter & Co.
(212) 257-4170

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SOURCE Greenlight Capital, Inc.

FAQ

What is the reported takeover offer price for Brighthouse Financial (BHF)?

Aquarian Holdings has reportedly made a cash offer of $70 per share for Brighthouse Financial, representing a 55% premium to the September 18 closing price.

How much of Brighthouse Financial does Greenlight Capital own in 2025?

Greenlight Capital owns approximately 4.9% of the outstanding shares of Brighthouse Financial, making it one of the company's largest shareholders.

How has Brighthouse Financial's stock performed since its 2017 MetLife spin-off?

BHF's stock price has declined 30% since its 2017 spin-off, despite repurchasing 52% of shares. The company now trades at just 32% of book value, down from 56% at spin-off.

What actions is Greenlight Capital threatening if BHF's board doesn't accept the offer?

Greenlight threatens to hold the board accountable by potentially giving shareholders an option to replace the entire Board at the next annual meeting if they don't act in shareholders' best interests.

What is Brighthouse Financial's current valuation metrics in 2025?

BHF trades at 32% of book value and 2.1x 2026 consensus EPS, compared to 56% of book value and 6.4x consensus EPS at its 2017 spin-off.