Greenlight Capital and its affiliates, which hold about 4.9% of Brighthouse Financial’s outstanding common stock, have called on the Brighthouse board to accept an acquisition offer reportedly made by Aquarian Holdings.
In a letter to the board, Greenlight Capital president David Einhorn (pictured above) urged directors to move forward with the reported US$70-per-share cash bid, representing a 55% premium to Brighthouse’s closing price on Sept. 18.
In the letter, Einhorn also issued a warning, urging the board to respond to the bid in a “timely and constructive manner.”
“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,” he said.
Greenlight Capital, a long-term shareholder since Brighthouse’s spin-off from MetLife in 2017, noted that the company has explored strategic alternatives for several months, with Aquarian emerging as a credible buyer.
The letter cited that Brighthouse’s stock has underperformed since its public debut, trading at 32% of book value and 2.1 times projected 2026 earnings per share, despite repurchasing more than half of its shares over eight years. Einhorn argued that Brighthouse has not gained the confidence of public market investors and has struggled to communicate a compelling investment rationale.
The letter also addressed other strategic options, such as asset sales or reinsurance transactions, but concluded that none are likely to deliver greater value to shareholders than the reported deal price.
“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,” Einhorn said.
Greenlight Capital indicated its willingness to participate in financing for Brighthouse if the company were to go private and cited confidence in the reported bidder’s track record with previous insurance acquisitions.
Greenlight Re, the company’s reinsurance arm, reported that its gross premiums written rose 28% to US$143.8 million for the fourth quarter of 2024, but also a net underwriting loss of US$18 million and a net loss of US$27.4 million, driven by aviation and catastrophe losses.
CEO Greg Richardson acknowledged the shortfall but noted that the organization, processes, and balance sheet have been strengthened to deliver shareholder value in the future.
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