10 Best Stocks to Buy According to Billionaire David Einhorn

3. Brighthouse Financial, Inc. (NASDAQ:BHF)

Greenlight Capital’s Stake Value: $130.23 Million

Number of Hedge Fund Holders: 32

Brighthouse Financial, Inc. (NASDAQ:BHF) is a financial services company that provides annuity and life insurance products. Its Life segment offers term, universal, whole, and variable life products for policyholders. While the stock is down by about 7% in 2024, the company continues to deliver solid financial results that affirm underlying growth.

Third quarter results delivered on November 7, 2024, show a 73% increase in revenue to $2.02 billion. However, net income fell by 67% to $150 million. Annuity sales for the year totaled $7.8 billion, with a 15% increase in Shield Annuity products as life insurance sales increased by 19% to $87 million. On the other hand, Brighthouse Financial, Inc.’s (NASDAQ:BHF) revenue is projected to grow at 16% per year over the next three years compared to the industry average growth rate of 5.3%.

In order to increase capital efficiency, unlock capital, and reach the desired combined RBC ratio, Brighthouse Financial, Inc. (NASDAQ:BHF) is still making headway on a number of strategic initiatives. The business is currently working with a third party to finalize a reinsurance deal. Under typical market circumstances, this transaction should bring the pro forma estimated combined risk-based capital to the low-end target range of 400% to 450%.

Here is what Greenlight Capital stated the following regarding Brighthouse Financial, Inc. (NASDAQ:BHF) in its Q2 2024 investor letter:

“However, it wasn’t all roses. We had three material losers in the long portfolio (and an undisclosed loser in the short portfolio), and deservedly so. Brighthouse Financial, Inc. (NASDAQ:BHF) fell from $51.54 to $43.34. In successive quarters, BHF announced large, non-recurring and unexpected losses. This time, the company suffered a loss in a reinsurance arbitration that cost several hundred million dollars.”