Brighthouse Financial stock (NASDAQ: BHF) surged 26% on Thursday after the Charlotte-based life insurer announced a definitive merger agreement with Aquarian Capital for $70 per share in an all-cash transaction valued at approximately $4.1 billion.
The offer represents a 35.1% premium to Brighthouse’s closing price of $51.80 on Wednesday and a 37.7% premium over its 90-day volume-weighted average price, marking the culmination of a months-long strategic review process initiated by the company’s board earlier this year.
For investors who watched the stock languish below analyst price targets for much of 2025, this deal delivers immediate and tangible value while raising questions about what lies ahead once the transaction closes in 2026.
Brighthouse Financial stock: What the premium reveals
The $70 per share price tag tells an interesting story about how private capital values insurance assets differently than public markets.
Before acquisition rumors surfaced in September, Brighthouse traded around $45 per share, reflecting investor concerns about earnings volatility and underperformance in the life insurance segment, which reported a $26 million adjusted loss in the second quarter of 2025.
Yet Aquarian Capital, backed by heavyweight investors including Mubadala Capital and RedBird Capital Partners, saw enough potential to offer a substantial premium, suggesting the market had systematically undervalued Brighthouse’s annuity franchise and growth prospects.
This wasn’t Aquarian’s first bid. The investment firm initially pursued Brighthouse in advanced talks during September, only for negotiations to stall over concerns about funding capacity.
Meanwhile, competing suitor Sixth Street had offered approximately $55 per share, valuing the company at roughly $3.1 billion, a significant discount to Aquarian’s eventual winning bid.
The fact that multiple private equity firms, including Apollo, Carlyle, and TPG, expressed interest before dropping out during due diligence underscores both the complexity of Brighthouse’s business and the strategic value Aquarian sees in its platform.
For current shareholders, the deal delivers clear upside.
Investors who held shares at Wednesday’s close stand to gain 35.1% immediately upon closing, and those who bought during the company’s struggles earlier in the year are looking at even more impressive returns.
The premium also validates the decision by activist investor Greenlight Capital, a major Brighthouse shareholder, which endorsed the transaction as delivering “greater value than alternative strategies like asset sales or reinsurance transactions.”
However, analysts remain divided on whether $70 fully captures Brighthouse’s long-term potential.
Wall Street price targets before the deal ranged from $42 to $72, with a median around $56, suggesting some analysts believed the stock was fairly valued even before the premium.
What investors should expect as the deal closes in 2026
The transaction is expected to close in 2026, subject to shareholder approval, antitrust clearance, and insurance regulatory approvals from Delaware, New York, and Massachusetts authorities.
Once completed, Brighthouse will operate as a standalone entity within Aquarian Capital’s portfolio, retaining its Charlotte headquarters, brand name, and current leadership under CEO Eric Steigerwalt.
This continuity matters for both employees and policyholders, as it signals that Aquarian intends to preserve Brighthouse’s distribution franchise and product innovation rather than gut the company for parts.
What makes this deal particularly compelling for long-term value creation is Aquarian’s stated plan to invest in Brighthouse’s platform and expand its distribution franchise.
The plan also includes enhancing the investment management capabilities through a partnership with Aquarian Investments, its asset management arm.
The acquirer is betting big on the US retirement market, which represents a “significant and growing opportunity” as aging demographics drive demand for annuities and guaranteed income solutions.
Brighthouse’s flagship Shield Level Annuities, which generated $2.0 billion in sales during the first quarter of 2025, position the company as a major player in this space.
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