Brighthouse Financial Surges 26% on $70 Per Share Aquarian Capital Buyout
The all-cash acquisition deal overshadowed the insurer's third-quarter earnings miss, sending shares to a new 52-week high.
Brighthouse Financial Inc. (BHF) shares soared more than 26% on Thursday after the company announced it had entered into a definitive agreement to be acquired by private investment firm Aquarian Capital in an all-cash deal valuing the company at $70.00 per share.
The news sent Brighthouse stock to a new 52-week high, closing at $65.70, a dramatic single-day gain of 26.83%. The acquisition agreement provided a substantial premium over the company's previous closing price and effectively eclipsed its simultaneous third-quarter earnings report, which fell short of analyst expectations.
The acquisition announcement was made in conjunction with Brighthouse's Q3 2025 financial results. In a move typical of such buyouts, Brighthouse canceled its previously scheduled conference call with analysts and investors to discuss the quarterly performance, focusing all attention on the impending transaction.
While the market's attention was firmly on the buyout, the company's underlying performance highlighted potential headwinds. For the third quarter, Brighthouse reported adjusted earnings of $4.54 per share, missing the consensus Wall Street estimate of approximately $5.06 per share. Net income available to shareholders was $453 million, or $7.89 per diluted share. Despite the earnings miss, the significant premium offered by Aquarian Capital drove the day's trading activity, rendering the quarterly results a secondary factor for investors.
Analysts were quick to react to the acquisition news. Morgan Stanley upgraded Brighthouse Financial's stock to 'Equalweight' from 'Underweight' and adjusted its price target to $70.00, aligning it directly with the acquisition price. The move reflects a valuation based on the certainty of the buyout rather than the company's standalone operational performance.
Brighthouse Financial, one of the largest providers of annuities and life insurance in the U.S., was spun off from MetLife in 2017. The company has since operated in a competitive environment, navigating fluctuating interest rates and market volatility that directly impact its investment income and policyholder liabilities. The acquisition by Aquarian Capital will take the company private, shielding it from public market pressures.
The company's preliminary financial disclosures for the quarter indicated a strong capital position, with combined total adjusted capital of $5.4 billion and an estimated combined risk-based capital ratio between 435% and 455%. As is common with acquisition announcements, at least one law firm has announced an investigation into the deal, a procedural step in major corporate transactions.
With the transaction pending shareholder and regulatory approval, the focus for Brighthouse now shifts from quarterly performance to the successful closing of the deal with Aquarian Capital.