Greenlight Capital Urges Brighthouse Financial to Engage with Potential Buyer for Shareholder Benefit

Greenlight Capital's Strategic Proposal to Brighthouse Financial

Greenlight Capital, an investment firm led by David Einhorn, has recently reached out to the Board of Directors of Brighthouse Financial, Inc., advocating for an engagement with a reported suitor, Aquarian Holdings. This letter, sent on September 22, 2025, emphasizes the necessity of exploring strategic alternatives to improve the circumstances for shareholders of Brighthouse Financial, which has seen dismal performance in its public market journey.

As stated in the letter, Greenlight holds about 4.9% of Brighthouse's outstanding common stock and has supported the company through various phases since its establishment as an independent entity in 2017, following its spin-off from MetLife. Greenlight believes that the time has come for the company to consider the bid from Aquarian Holdings, which reportedly involves a cash offer of approximately $70 per share—a figure representing a staggering 55% premium above its closing price just before the proposal was made.

Brighthouse Financial's Deteriorating Market Position

The letter outlines a critical view of Brighthouse's financial health, stating that the company has failed to earn investor confidence. Despite share repurchases intended to bolster its stock value, Brighthouse is currently trading significantly below its book value. The recent history shows that the share price has lingered at 30% lower than its value following the spin-out from MetLife, indicating persistent struggles and an ineffective market strategy.

Analytical assessments reveal that since its inception as Brighthouse Financial, the stock has consistently been rated poorly by analysts, indicating a lack of persuasive investment rationale. Greenlight's correspondence underscores that without significant strategic changes, including the consideration of offers like that from Aquarian, the outlook for Brighthouse remains bleak.

The Call to Action

Greenlight’s call to action is clear and direct: the Board of Directors should prioritize the interests of shareholders by engaging with Aquarian Holdings confidently. The letter stresses that the potential deal presents a “highly credible” option with minimal risk, which could finally allow shareholders to realize immediate value from their investments.

David Einhorn, in his communication, expresses his willingness to support Brighthouse financially should a deal be finalized, further supporting the notion that a private ownership structure could be beneficial. By shifting ownership away from public hands, Brighthouse would have the opportunity to navigate operational challenges without the pressures of market scrutiny.

The letter concludes by urging the Board to act decisively and productively regarding the proposition at hand. Greenlight warns that failure to act in shareholders' best interests might lead them to hold the Board accountable, suggesting a willingness to pursue replacement of Board members at the next annual meeting.

Transparency and Future Engagement

In a bid for transparency, Greenlight intends to publicize the letter, showcasing their commitment to the welfare of Brighthouse's stakeholders. They express hopes for continued dialogue with the Board to ensure that the necessary steps are taken toward this potential transaction.

In wrapping up, the dynamics between Greenlight Capital and Brighthouse Financial set the stage for a critical juncture in the company's future. Should the Board recognize the value in engaging with Aquarian Holdings, it may lead to a pivotal turnaround, allowing for a revitalization of the company’s market standing and an improvement in shareholder relations.