Ameriprise Financial, Inc. (NYSE: AMP):
Earnings Per Diluted Share
Return on Equity, ex AOCI (1)
Q3
2023
Q3
2023
GAAP
$8.14
GAAP
44.4%
Adjusted Operating
$6.96
Adjusted Operating
48.4%
Adjusted Operating ex Unlocking (2)
$7.68
Adjusted Operating ex Unlocking (2)
49.6%
- Third quarter adjusted operating earnings per diluted share
excluding unlocking was $7.68, up 21 percent from the prior year,
driven by the strength of the company’s diversified business
model.
Perspective from Jim Cracchiolo,
Chairman and Chief Executive Officer
“Ameriprise delivered another strong
quarter amid a challenging operating environment, demonstrating the
strength and flexibility of our diversified business.
Wealth Management remains our primary
growth driver with good client flows and excellent client-advisor
engagement. Complementing Wealth Management are our differentiated
Retirement and Protection Solutions and global Asset Management
businesses that are generating strong financial results.
As a firm, our excellent capital
management, consistent financial results and proven expense
discipline position us well.”
- Third quarter GAAP net income per diluted share was $8.14
compared to $9.41 a year ago, primarily from market impacts on the
valuation of derivatives and market risk benefits, as well as
unlocking.
- Assets under management and administration reached $1.2
trillion, up 12 percent from strong client net inflows and market
appreciation.
- Adjusted operating net revenues increased 11 percent from
organic growth, higher spread revenues and equity market
appreciation.
- General and administrative expense remained well managed, up 4
percent. The company made growth investments in attractive areas
and continued to manage expenses tightly.
- Pretax adjusted operating margin excluding unlocking reached a
new high of 27 percent and adjusted operating ROE excluding
unlocking was 50 percent.
- Free cash flow remained approximately 90 percent of earnings,
reflecting continued strong performance across market environments.
Balance sheet fundamentals were strong with $1.4 billion of excess
capital, $1.9 billion of holding company available liquidity,
effective hedging and a high-quality, diversified investment
portfolio.
- Balance sheet strength and free cash flow generation enabled
consistent capital return to shareholders. In the quarter, the
company returned $663 million of capital to shareholders, which was
approximately 80 percent of adjusted operating earnings excluding
unlocking.
- Ameriprise is expected to close on its partnership with
Comerica Bank in November.
(1) Return on equity excluding AOCI is
calculated on a trailing 12-month basis.
(2) Unlocking impacts reflect the
company’s annual review of insurance and annuity valuation
assumptions and model changes.
Ameriprise Financial,
Inc.
Third Quarter Summary
Quarter Ended September
30,
% Better/
(Worse)
Year-to-date
September 30,
% Better/
(Worse)
(in millions, except per share amounts,
unaudited)
2023
2022
2023
2022
GAAP net income
$
872
$
1,061
(18)%
$
2,179
$
2,500
(13)%
Adjusted operating earnings
$
745
$
823
(9)%
$
2,350
$
2,153
9%
Adjusted operating earnings excluding
unlocking (see reconciliation starting on p. 25)
$
823
$
716
15%
$
2,428
$
2,046
19%
GAAP net income per diluted share
$
8.14
$
9.41
(13)%
$
20.08
$
21.85
(8)%
Adjusted operating earnings per diluted
share
$
6.96
$
7.30
(5)%
$
21.66
$
18.82
15%
Adjusted operating earnings per diluted
share excluding unlocking (see reconciliation starting on p.
25)
$
7.68
$
6.35
21%
$
22.38
$
17.88
25%
GAAP Return on Equity, ex. AOCI
44.4
%
55.7
%
44.4
%
55.7
%
Adjusted Operating Return on Equity, ex.
AOCI
48.4
%
49.9
%
48.4
%
49.9
%
Adjusted Operating Return on Equity, ex.
AOCI and unlocking
(see reconciliation on p. 30)
49.6
%
48.0
%
49.6
%
48.0
%
GAAP Equity, ex. AOCI
$
6,665
$
6,283
6%
$
6,665
$
6,283
6%
Available Capital for Capital Adequacy
(see reconciliation on p. 27)
$
5,247
$
5,259
-
$
5,247
$
5,259
-
Weighted average common shares
outstanding:
Basic
104.9
110.5
106.4
112.1
Diluted
107.1
112.7
108.5
114.4
Current quarter GAAP results included after-tax net realized
investment losses of $30 million primarily from continued
investment portfolio repositioning to capture the benefit of higher
interest rates and $9 million of integration costs, primarily
related to the acquisition of BMO EMEA. In October, the company
accomplished a major milestone in the BMO integration with the
completion of the order management system platform conversion.
The company completed its annual actuarial assumption update in
the quarter, which resulted in an unfavorable after-tax impact of
$78 million or $0.72 per share. This was primarily related to
updated persistency assumptions for variable annuities.
Ameriprise Financial,
Inc.
Advice & Wealth Management
Segment Adjusted Operating Results
Quarter Ended September
30,
% Better/
(Worse)
(in millions, unaudited)
2023
2022
Adjusted operating net revenues
$
2,407
$
2,137
13%
Distribution expenses
1,253
1,149
(9)%
Interest and debt expense
6
3
NM
General and administrative expenses
(1)
419
390
(7)%
Adjusted operating expenses
1,678
1,542
(9)%
Pretax adjusted operating earnings
$
729
$
595
23%
Pretax adjusted operating margin (1)
30.3
%
27.8
%
250 bps
(1) Excluding $20 million regulatory
accrual, G&A was up 2 percent to $399 million and margin
increased 330 basis points to 31.1 percent.
NM Not Meaningful - variance equal to or
greater than 100%
Quarter Ended September
30,
% Better/
(Worse)
(in billions, unless otherwise noted)
2023
2022
Total client assets
$
816
$
711
15%
Total client net flows
$
8.9
$
11.2
(20)%
Wrap net flows
$
5.4
$
6.4
(16)%
AWM cash balances
$
40.5
$
46.3
(13)%
Adjusted operating net revenue per advisor
(TTM in thousands)
$
901
$
819
10%
Advice & Wealth Management pretax adjusted operating
earnings were strong at $729 million, up 23 percent. Results
included a $20 million accrual for an industry-wide regulatory
matter relating to electronic communication recordkeeping
requirements. Excluding the accrual, pretax adjusted operating
earnings increased 26 percent with a pretax adjusted operating
margin of 31.1 percent.
Adjusted operating net revenues increased 13 percent to $2.4
billion from continued growth in client assets in both wrap and
brokerage accounts, as well as higher investment earnings from cash
products, which is expected to remain a sustainable driver of
revenue going forward.
Adjusted operating expenses increased 9 percent to $1.7 billion
compared to a year ago. Distribution expenses increased 9 percent.
General and administrative expense was $419 million and included
the regulatory accrual. Excluding the accrual, general and
administrative expense was $399 million, up 2 percent and the
company continues to expect mid-single-digit growth for the full
year.
The Wealth Management business delivered continued balanced
profitable organic growth. Clients and advisors remained engaged
and focused on positioning portfolios to meet financial planning
goals through the market cycle. Clients remain heavily concentrated
in yield-oriented products and have not begun putting cash back to
work given the current environment.
- Total client net flows were $9 billion in the quarter and were
$43 billion over the past year.
- Bank and certificate assets grew 37 percent year-over-year to
$35 billion, and cash sorting slowed throughout the quarter.
- Advisor headcount was 10,258, reflecting good advisor retention
coupled with the addition of 64 experienced advisors in the
quarter.
- Adjusted operating net revenue per advisor on a trailing
12-month basis was $901,000, up 10 percent from enhanced
productivity, business growth and market appreciation.
Ameriprise Financial,
Inc.
Asset Management Segment
Adjusted Operating Results
Quarter Ended September
30,
% Better/
(Worse)
(in millions, unaudited)
2023
2022
Adjusted operating net revenues
$
826
$
823
-
Distribution expenses
234
238
2%
Amortization of deferred acquisition
costs
1
2
50%
Interest and debt expense
2
1
NM
General and administrative expenses
390
391
-
Adjusted operating expenses
627
632
1%
Pretax adjusted operating earnings
$
199
$
191
4%
Net pretax adjusted operating margin
(1)
35.7
%
35.6
%
Quarter Ended September
30,
% Better/
(Worse)
(in billions)
2023
2022
Total segment AUM
$
587
$
546
7%
Net Flows
Global Retail net flows, ex. legacy
insurance partners flows
$
(3.8)
$
(5.3)
27%
Global Institutional net flows, ex. legacy
insurance partners flows
0.5
3.9
(89)%
Legacy insurance partners flows
(0.9)
(1.0)
10%
Total segment net flows
$
(4.2)
$
(2.4)
(77)%
Model delivery AUA Flows (2)
$
0.2
$
(0.5)
NM
(1) See reconciliation on page 12.
(2) Estimated based on the period to
period change in assets less calculated performance based on
strategy returns on a one-quarter lag.
NM Not Meaningful - variance equal to or
greater than 100%
Asset Management adjusted operating net revenues were
$826 million and pretax adjusted operating earnings were $199
million, up 4 percent in a challenging environment. Financial
results reflected equity market appreciation, disciplined expense
management and $7 million of favorable timing-related items, which
more than offset the cumulative impact of net outflows. Net pretax
adjusted operating margin was 36 percent and above the company’s
targeted range of 31 to 35 percent.
Adjusted operating expenses decreased 1 percent, with general
and administrative expenses down $1 million. The company has begun
implementing more comprehensive expense management initiatives in
light of the environment and its objective to improve the margin.
Excluding the impact of foreign exchange translation, general and
administrative expenses were down 3 percent.
Total assets under management increased 7 percent to $587
billion as equity market appreciation and foreign exchange
translation were partially offset by net outflows. The fee rate
remained stable on a sequential basis. Long term 3-, 5- and 10-year
investment performance remained strong and there was notable
improvement in 1-year fixed income performance.
In the quarter, net outflows were $4.2 billion reflecting the
challenging market environment. Flows included $0.9 billion of
outflows related to legacy insurance partners.
- Retail net outflows were $3.8 billion reflecting continued weak
gross sales consistent with the industry that were partially offset
by a significant improvement in redemptions.
- Global institutional inflows were $0.5 billion with fundings
primarily in liability-driven investment and emerging market equity
mandates.
Ameriprise Financial,
Inc.
Retirement & Protection
Solutions Segment Adjusted Operating Results
Quarter Ended September
30,
% Better/
(Worse)
(in millions, unaudited)
2023
2022
Adjusted operating net revenues
$
876
$
783
12%
Adjusted operating expenses
776
458
(69)%
Pretax adjusted operating earnings
(including unlocking)
$
100
$
325
(69)%
Unlocking
(104
)
128
NM
Pretax adjusted operating earnings
excluding unlocking
$
204
$
197
4%
NM Not Meaningful - variance equal to or
greater than 100%
Retirement & Protection Solutions pretax adjusted
operating earnings excluding unlocking were $204 million versus
$197 million last year, with strong sales growth. The business
continued to generate strong free cash flow and a high return on
capital.
Retirement & Protection Solutions sales improved in the
quarter, with protection sales up 22 percent to $79 million
primarily in higher-margin VUL products. Variable annuity sales
grew 18 percent to $1.1 billion with the majority of sales in
structured variable annuities.
Ameriprise Financial,
Inc.
Corporate & Other Segment
Adjusted Operating Results
Quarter Ended September
30,
% Better/
(Worse)
(in millions, unaudited)
2023
2022
Corporate & Other
$
(74
)
$
(73
)
(1)%
Closed Blocks (1)
2
(5
)
NM
Pretax adjusted operating earnings
$
(72
)
$
(78
)
8%
Unlocking
5
7
(29)%
Pretax adjusted operating earnings
excluding unlocking
$
(77
)
$
(85
)
9%
Long Term Care excluding unlocking
$
5
$
(6
)
NM
Fixed Annuities excluding unlocking
(8
)
(6
)
(33)%
Pretax adjusted operating earnings
excluding unlocking
$
(3
)
$
(12
)
75%
(1) Long Term Care and Fixed
Annuities.
NM Not Meaningful - variance equal to or
greater than 100%
Total Corporate & Other pretax adjusted operating
loss was $72 million.
Corporate & Other, excluding Closed Blocks, pretax
adjusted operating loss was $74 million, which was in line with the
prior year period. The loss included $7 million of severance
expense related to the company’s expense management initiatives and
are designed to improve operating efficiency and effectiveness,
which commenced in the quarter.
Long Term Care pretax adjusted operating earnings
excluding unlocking were in line with expectations at $5
million.
Fixed Annuities pretax adjusted operating loss was in
line with expectations at $8 million.
Taxes
The operating effective tax rate increased to 22.1 percent for
the third quarter and 20.5 percent on a year-to-date basis.
Excluding the impact from the regulatory accrual, the operating
effective tax rate in the quarter was 21.6 percent. The effective
tax rate is expected to be at the higher end of the 20 to 21
percent range for the full year.
About Ameriprise Financial
At Ameriprise Financial, we have been helping people feel
confident about their financial future for more than 125 years.
With extensive investment advice, asset management and insurance
capabilities and a nationwide network of over 10,000 financial
advisors, we have the strength and expertise to serve the full
range of individual and institutional investors' financial needs.
For more information, or to find an Ameriprise financial advisor,
visit ameriprise.com.
Ameriprise Financial Services, LLC offers financial planning
services, investments, insurance and annuity products. Columbia
Funds are distributed by Columbia Management Investment
Distributors, Inc., member FINRA and managed by Columbia Management
Investment Advisers, LLC. Threadneedle International Limited,
Columbia Threadneedle Asset Managers Limited, Columbia Threadneedle
(EM) Investments Limited, and Pyrford International Ltd, are SEC-
and FCA-registered investment adviser affiliates of Columbia
Management Investment Advisers, LLC based in the U.K. RiverSource
insurance and annuity products are issued by RiverSource Life
Insurance Company, and in New York only by RiverSource Life
Insurance Co. of New York, Albany, New York. Only RiverSource Life
Insurance Co. of New York is authorized to sell insurance and
annuity products in the state of New York. These companies are part
of Ameriprise Financial, Inc. CA License #0684538. RiverSource
Distributors, Inc. (Distributor), Member FINRA.
Non-GAAP Financial Measures
The company believes the presentation of adjusted operating
measures, available capital for capital adequacy and other non-GAAP
financial measures, and the corresponding ratios, best represents
the underlying performance of our core operations and facilitates a
more meaningful trend analysis without the distortion of various
adjustment items. Management uses non-GAAP financial measures to
evaluate our financial performance on a basis comparable to that
used by some securities analysts and investors and to provide a
valuable perspective for investors. These non-GAAP financial
measures are taken into consideration, to varying degrees, for
purposes of business planning and analysis and for certain
compensation-related matters. Non-GAAP financial measures are
intended to supplement investors’ understanding of our performance
and should not be considered alternatives for financial measures
presented in accordance with GAAP. These measures are discussed in
more detail below and may not be comparable to other companies’
similarly titled non-GAAP financial measures. Non-GAAP financial
measure reconciliations can be found on the subsequent pages.
Forward-Looking Statements
This news release contains forward-looking statements that
reflect management’s plans, estimates and beliefs. Actual results
could differ materially from those described in these
forward-looking statements. Examples of such forward-looking
statements include:
- statements of the company’s plans, intentions, positioning,
expectations, objectives or goals, including those relating to
asset flows, mass affluent and affluent client acquisition
strategy, client retention and growth of our client base, financial
advisor productivity, retention, recruiting and enrollments, the
introduction, cessation, terms or pricing of new or existing
products and services, acquisition integration, general and
administrative costs, net pretax adjusted operating margin,
consolidated tax rate, return of capital to shareholders, and
excess capital position and financial flexibility to capture
additional growth opportunities;
- other statements about future economic performance, the
performance of equity markets and interest rate variations and the
economic performance of the United States and of global
markets;
- statements about the closing date of the partnership with
Comerica;
- statements about higher investment earnings from cash product
being a sustainable driver of revenue going forward;
- statements regarding general and administrative expenses in
Advice & Wealth Management;
- statements estimating full year 2023 operating effective tax
rate; and
- statements of assumptions underlying such statements.
The words “believe,” “expect,” “anticipate,” “optimistic,”
“intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,”
“likely,” “forecast,” “on track,” “project,” ”continue,” “able to
remain”, “resume,” “deliver,” “develop,” “evolve,” “drive,”
”enable,” “flexibility,” “commitment,” “scenario,” “case,”
“appear,” “expands” and similar expressions are intended to
identify forward-looking statements but are not the exclusive means
of identifying such statements. Forward-looking statements are
subject to risks and uncertainties, which could cause actual
results to differ materially from such statements.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date on
which they are made. Management cautions readers to carefully
consider the risks described in the “Risk Factors” discussion under
Part 1, Item 1A of and elsewhere in our Annual Report on Form 10-K
for the year ended December 31, 2022 available at
ir.ameriprise.com. Management undertakes no obligation to update
publicly or revise any forward-looking statements.
The financial results discussed in this news release represent
past performance only, which may not be used to predict or project
future results. The financial results and values presented in this
news release are based upon asset valuations that represent
estimates as of the date of this news release and may be revised in
the company’s Form 10-Q for the period ended September 30,
2023.
Ameriprise Financial announces financial and other information
to investors through the company’s investor relations website at
ir.ameriprise.com, as well as SEC filings, press releases, public
conference calls and webcasts. Investors and others interested in
the company are encouraged to visit the investor relations website
from time to time, as information is updated and new information is
posted. The website also allows users to sign up for automatic
notifications in the event new materials are posted. The
information found on the website is not incorporated by reference
into this release or in any other report or document the company
furnishes or files with the SEC.
Ameriprise Financial,
Inc.
Consolidated GAAP
Results
(in millions, except per share amounts,
unaudited)
3 Qtr 2023
3 Qtr 2022
% Better/
(Worse)
2 Qtr 2023
% Better/
(Worse)
Revenues
Management and financial advice fees
$
2,287
$
2,172
5%
$
2,199
4%
Distribution fees
463
506
(8)%
482
(4)%
Net investment income
809
349
NM
811
-
Premiums, policy and contract charges
390
354
10%
383
2%
Other revenues
127
118
8%
132
(4)%
Total revenues
4,076
3,499
16%
4,007
2%
Banking and deposit interest expense
151
15
NM
131
(15)%
Total net revenues
3,925
3,484
13%
3,876
1%
Expenses
Distribution expenses
1,297
1,198
(8)%
1,248
(4)%
Interest credited to fixed accounts
139
157
11%
161
14%
Benefits, claims, losses and settlement
expenses
120
81
(48)%
327
63%
Remeasurement (gains) losses of future
policy benefit reserves
(12
)
(1
)
NM
—
-
Change in fair value of market risk
benefits
168
(321
)
NM
(99
)
NM
Amortization of deferred acquisition
costs
62
58
(7)%
61
(2)%
Interest and debt expense
84
52
(62)%
84
-
General and administrative expense
950
925
(3)%
967
2%
Total expenses
2,808
2,149
(31)%
2,749
(2)%
Pretax income
1,117
1,335
(16)%
1,127
(1)%
Income tax provision
245
274
11%
237
(3)%
Net income
$
872
$
1,061
(18)%
$
890
(2)%
Earnings per share
Basic earnings per share
$
8.31
$
9.60
$
8.36
Earnings per diluted share
$
8.14
$
9.41
$
8.21
Weighted average common shares
outstanding
Basic
104.9
110.5
106.4
Diluted
107.1
112.7
108.4
NM Not Meaningful - variance equal to or
greater than 100%
Ameriprise Financial,
Inc.
Consolidated Highlights and
Capital Summary
(in millions unless otherwise noted,
unaudited)
3 Qtr 2023
3 Qtr 2022
% Better/
(Worse)
2 Qtr 2023
% Better/
(Worse)
Assets Under Management and
Administration
Advice & Wealth Management AUM
$
440,703
$
382,364
15%
$
451,249
(2)%
Asset Management AUM
587,171
546,493
7%
616,598
(5)%
Corporate AUM
349
170
NM
297
18%
Eliminations
(37,795
)
(35,494
)
(6)%
(39,308
)
4%
Total Assets Under Management
990,428
893,533
11%
1,028,836
(4)%
Total Assets Under
Administration
242,336
207,965
17%
247,952
(2)%
Total AUM and AUA
$
1,232,764
$
1,101,498
12%
$
1,276,788
(3)%
S&P 500
Daily average
4,456
3,983
12%
4,207
6%
Period end
4,288
3,586
20%
4,450
(4)%
Weighted Equity Index (WEI) (1)
Daily average
2,903
2,606
11%
2,769
5%
Period end
2,788
2,347
19%
2,900
(4)%
Common shares
Beginning balance
102.8
108.4
(5)%
104.4
(2)%
Repurchases
(1.5
)
(1.8
)
17%
(1.6
)
6%
Issuances
0.3
0.1
NM
—
-
Other
(0.2
)
—
-
—
-
Total common shares outstanding
101.4
106.7
(5)%
102.8
(1)%
Restricted stock units
2.6
2.8
(7)%
2.7
(4)%
Total basic common shares
outstanding
104.0
109.5
(5)%
105.5
(1)%
Total potentially dilutive shares
2.2
2.3
(4)%
2.1
5%
Total diluted shares
106.2
111.8
(5)%
107.6
(1)%
Capital Returned to
Shareholders
Dividends paid
$
143
$
140
2%
$
146
(2)%
Common stock share repurchases
520
492
6%
492
6%
Total Capital Returned to
Shareholders
$
663
$
632
5%
$
638
4%
(1) Weighted Equity Index is an Ameriprise
calculated proxy for equity market movements calculated using a
weighted average of the S&P 500, Russell 2000, Russell Midcap
and MSCI EAFE indices based on North America distributed equity
assets.
NM Not Meaningful - variance equal to or
greater than 100%
Ameriprise Financial,
Inc.
Advice & Wealth Management
Segment Adjusted Operating Results
(in millions, unaudited)
3 Qtr 2023
3 Qtr 2022
% Better/
(Worse)
2 Qtr 2023
% Better/
(Worse)
Revenues
Management and financial advice fees:
Advisory fees
$
1,228
$
1,107
11%
$
1,154
6%
Financial planning fees
102
97
5%
104
(2)%
Transaction and other fees
94
93
1%
96
(2)%
Total management and financial advice
fees
1,424
1,297
10%
1,354
5%
Distribution fees:
Mutual funds
184
180
2%
179
3%
Insurance and annuity
226
205
10%
222
2%
Off-Balance sheet brokerage cash
58
110
(47)%
84
(31)%
Other products
84
84
-
84
-
Total distribution fees
552
579
(5)%
569
(3)%
Net investment income
517
219
NM
483
7%
Other revenues
65
57
14%
68
(4)%
Total revenues
2,558
2,152
19%
2,474
3%
Banking and deposit interest expense
151
15
NM
131
(15)%
Adjusted operating total net
revenues
2,407
2,137
13%
2,343
3%
Expenses
Distribution expenses
1,253
1,149
(9)%
1,196
(5)%
Interest and debt expense
6
3
NM
6
-
General and administrative expense
419
390
(7)%
410
(2)%
Adjusted operating expenses
1,678
1,542
(9)%
1,612
(4)%
Pretax adjusted operating
earnings
$
729
$
595
23%
$
731
-
Pretax adjusted operating
margin
30.3
%
27.8
%
31.2
%
NM Not Meaningful - variance equal to or
greater than 100%
Ameriprise Financial,
Inc.
Advice & Wealth Management
Segment Operating Metrics
(in millions unless otherwise noted,
unaudited)
3 Qtr 2023
3 Qtr 2022
% Better/
(Worse)
2 Qtr 2023
% Better/
(Worse)
AWM Total Client Assets
$
816,019
$
711,428
15%
$
833,347
(2)%
Total Client Flows
$
8,901
$
11,164
(20)%
$
9,408
(5)%
Total Wrap Accounts
Beginning assets
$
454,689
$
399,287
14%
$
434,674
5%
Net flows
5,391
6,449
(16)%
5,610
(4)%
Market appreciation (depreciation) and
other
(16,019
)
(20,526
)
22%
14,405
NM
Total wrap ending assets
$
444,061
$
385,210
15%
$
454,689
(2)%
Advisory wrap account assets ending
balance (1)
$
439,341
$
381,136
15%
$
449,857
(2)%
Brokerage Cash & Certificates
Balances
On-balance sheet (Net Investment
Income)
On-balance sheet - broker dealer
$
2,554
$
3,345
(24)%
$
2,605
(2)%
On-balance sheet - bank
20,970
18,594
13%
20,933
-
On-balance sheet - certificate
12,612
6,202
NM
12,069
4%
Total on-balance sheet
$
36,136
$
28,141
28%
$
35,607
1%
Off-balance sheet (Distribution
Fees)
Off-balance sheet - broker dealer
$
4,347
$
18,155
(76)%
$
6,413
(32)%
Total brokerage cash & certificates
balances
$
40,483
$
46,296
(13)%
$
42,020
(4)%
Gross Fee Yield
On-balance sheet - broker dealer
5.30
%
1.74
%
4.72
%
On-balance sheet - bank
4.97
%
2.98
%
4.76
%
On-balance sheet - certificates
5.40
%
2.75
%
5.20
%
Off-balance sheet - broker dealer
4.28
%
2.13
%
4.14
%
Financial Advisors
Employee advisors
2,104
2,089
1%
2,108
-
Franchisee advisors
8,154
8,193
-
8,166
-
Total financial advisors
10,258
10,282
-
10,274
-
Advisor Retention
Employee
92.2
%
91.9
%
92.0
%
Franchisee
92.8
%
94.4
%
93.0
%
(1) Advisory wrap account assets represent
those assets for which clients receive advisory services and are
the primary driver of revenue earned on wrap accounts. Clients may
hold non-advisory investments in their wrap accounts that do not
incur an advisory fee.
NM Not Meaningful - variance equal to or
greater than 100%
Ameriprise Financial,
Inc.
Asset Management Segment
Adjusted Operating Results
(in millions, unaudited)
3 Qtr 2023
3 Qtr 2022
% Better/
(Worse)
2 Qtr 2023
% Better/
(Worse)
Revenues
Management and financial advice fees:
Asset management fees:
Retail
$
499
$
509
(2)%
$
490
2%
Institutional
165
159
4%
157
5%
Transaction and other fees
50
51
(2)%
48
4%
Revenue from other sources (1)
3
4
(25)%
4
(25)%
Total management and financial advice
fees
717
723
(1)%
699
3%
Distribution fees:
Mutual funds
53
56
(5)%
51
4%
Insurance and annuity
39
40
(3)%
39
-
Total distribution fees
92
96
(4)%
90
2%
Net investment income
10
2
NM
10
-
Other revenues
7
2
NM
9
(22)%
Total revenues
826
823
-
808
2%
Banking and deposit interest expense
—
—
-
—
-
Adjusted operating total net
revenues
826
823
-
808
2%
Expenses
Distribution expenses
234
238
2%
233
-
Amortization of deferred acquisition
costs
1
2
50%
2
50%
Interest and debt expense
2
1
NM
1
NM
General and administrative expense
390
391
-
410
5%
Adjusted operating expenses
627
632
1%
646
3%
Pretax adjusted operating
earnings
$
199
$
191
4%
$
162
23%
Net Pretax Adjusted Operating Margin
Reconciliation
Adjusted operating total net revenues
$
826
$
823
-
$
808
2%
Distribution pass through revenues
(186
)
(187
)
1%
(183
)
(2)%
Subadvisory and other pass through
revenues
(96
)
(91
)
(5)%
(95
)
(1)%
Net adjusted operating revenues
$
544
$
545
-
$
530
3%
Pretax adjusted operating earnings
$
199
$
191
4%
$
162
23%
Adjusted operating net investment
income
(10
)
(2
)
NM
(10
)
-
Amortization of intangibles
5
5
-
6
(17)%
Net adjusted operating earnings
$
194
$
194
-
$
158
23%
Pretax adjusted operating margin
24.1
%
23.2
%
20.0
%
Net pretax adjusted operating margin
(2)
35.7
%
35.6
%
29.8
%
Performance fees (3)
Performance fees
$
7
$
1
NM
$
1
NM
General and administrative expense related
to performance fees
1
—
-
1
-
Net performance fees
$
6
$
1
NM
$
—
-
(1) Includes revenue from separate
accounts that qualify as investment contracts under insurance
accounting standards.
(2) Calculated as net adjusted operating
earnings as a percentage of net adjusted operating revenues.
(3) Performance fees do not include CLO
incentive fees.
NM Not Meaningful - variance equal to or
greater than 100%
Ameriprise Financial,
Inc.
Asset Management Segment
Operating Metrics
(in millions, unaudited)
3 Qtr 2023
3 Qtr 2022
% Better/
(Worse)
2 Qtr 2023
% Better/
(Worse)
Managed Assets Rollforward
Global Retail Funds
Beginning assets
$
327,420
$
322,938
1%
$
321,391
2%
Inflows
11,223
11,715
(4)%
11,547
(3)%
Outflows
(15,166
)
(17,642
)
14%
(16,323
)
7%
Net VP/VIT fund flows
(1,216
)
(999
)
(22)%
(1,270
)
4%
Net new flows
(5,159
)
(6,926
)
26%
(6,046
)
15%
Reinvested dividends
1,320
1,647
(20)%
1,265
4%
Net flows
(3,839
)
(5,279
)
27%
(4,781
)
20%
Distributions
(1,514
)
(1,861
)
19%
(1,544
)
2%
Market appreciation (depreciation) and
other
(8,478
)
(15,281
)
45%
9,885
NM
Foreign currency translation (1)
(3,419
)
(4,314
)
21%
2,469
NM
Total ending assets
310,170
296,203
5%
327,420
(5)%
% of total retail assets sub-advised
16.0
%
15.7
%
15.9
%
Global Institutional
Beginning assets
289,178
275,212
5%
286,288
1%
Inflows (2)
8,404
14,932
(44)%
11,708
(28)%
Outflows (2)
(8,809
)
(12,056
)
27%
(12,180
)
28%
Net flows
(405
)
2,876
NM
(472
)
14%
Market appreciation (depreciation) and
other (3)
(4,607
)
(17,785
)
74%
(1,852
)
NM
Foreign currency translation (1)
(7,165
)
(10,013
)
28%
5,214
NM
Total ending assets
277,001
250,290
11%
289,178
(4)%
Total managed assets
$
587,171
$
546,493
7%
$
616,598
(5)%
Total net flows
$
(4,244
)
$
(2,403
)
(77)%
$
(5,253
)
19%
Legacy insurance partners flows
$
(950
)
$
(1,053
)
10%
$
(1,377
)
31%
Total Assets Under Advisement
(4)
$
26,756
$
22,313
20%
$
25,282
6%
Model delivery AUA flows (5)
$
213
$
(542
)
NM
$
488
(56)%
(1) Amounts represent local currency to US
dollar translation for reporting purposes.
(2) Global Institutional inflows and
outflows include net flows from our RiverSource Structured Annuity
product and Ameriprise Bank, FSB.
(3) Included in Market appreciation
(depreciation) and other for Global Institutional is the change in
affiliated general account balance excluding net flows related to
our Structured Annuity product and Ameriprise Bank, FSB.
(4) Assets are presented on a one-quarter
lag.
(5) Estimated flows based on the period to
period change in assets less calculated performance based on
strategy returns on a one-quarter lag.
NM Not Meaningful - variance equal to or
greater than 100%
Ameriprise Financial,
Inc.
Asset Management Segment
Operating Metrics
(in millions, unaudited)
3 Qtr 2023
3 Qtr 2022
% Better/
(Worse)
2 Qtr 2023
% Better/
(Worse)
Total Managed Assets by Type
Equity
$
299,078
$
278,446
7%
$
316,092
(5)%
Fixed income
214,839
194,643
10%
225,520
(5)%
Money market
22,719
21,261
7%
22,439
1%
Alternative
33,602
35,238
(5)%
35,088
(4)%
Hybrid and other
16,933
16,905
-
17,459
(3)%
Total managed assets by type
$
587,171
$
546,493
7%
$
616,598
(5)%
Average Managed Assets by Type
(1)
Equity
$
313,909
$
305,078
3%
$
309,576
1%
Fixed income
222,745
214,305
4%
223,766
-
Money market
22,583
18,499
22%
22,945
(2)%
Alternative
34,797
36,962
(6)%
34,888
-
Hybrid and other
17,533
18,417
(5)%
17,152
2%
Total average managed assets by
type
$
611,567
$
593,261
3%
$
608,327
1%
(1) Average ending balances are calculated
using the average of the prior period’s ending balance and all
months in the current period.
Ameriprise Financial,
Inc.
Asset Management Segment
Performance Metrics
3 Qtr 2023
Retail Fund Rankings in Top 2 Quartiles
or Above Index Benchmark - Asset Weighted
1 year
3 year
5 year
10 year
Equity
66%
72%
77%
87%
Fixed Income
64%
61%
74%
85%
Asset Allocation
69%
52%
74%
90%
4- or 5-star Morningstar rated
funds
Overall
3 year
5 year
10 year
Number of Rated Funds
112
74
94
97
Retail Fund performance rankings for each
fund are measured on a consistent basis against the most
appropriate peer group or index. Peer groupings of Columbia funds
are defined by Lipper category and are based on the Primary Share
Class (i.e., Institutional if available, otherwise Advisor or
Instl3 share class), net of fees. Peer groupings of Threadneedle
funds are defined by either IA or Morningstar index and are based
on the Primary Share Class. Comparisons to Index are measured Gross
of Fees.
To calculate asset weighted performance,
the sum of the total assets of the funds with above median ranking
are divided by total assets of all funds. Funds with more assets
will receive a greater share of the total percentage above or below
median.
Aggregated Asset Allocation Funds may
include funds that invest in other Columbia or Threadneedle branded
mutual funds included in both equity and fixed income.
Morningstar as of 09/30/23. Columbia funds
are available for purchase by U.S. customers. Out of 99 Columbia
funds rated (based on primary share class), 9 received a 5-star
Overall Rating and 31 received a 4-star Overall Rating. Out of 150
Threadneedle funds rated (based on highest-rated share class), 17
received a 5-star Overall Rating and 55 received a 4-star Overall
Rating. The Overall Morningstar Rating is derived from a weighted
average of the performance figures associated with its 3-, 5- and
10-year (if applicable) Morningstar Rating metrics. Not all funds
are available in all jurisdictions, to all investors or through all
firms.
© 2023 Morningstar. All rights reserved.
The Morningstar information contained herein: (1) is proprietary to
Morningstar and/or its content providers; (2) may not be copied or
distributed; and (3) is not warranted to be accurate, complete, or
timely. Neither Morningstar nor its content providers are
responsible for any damages or losses arising from any use of this
information.
Ameriprise Financial,
Inc.
Retirement & Protection
Solutions Segment Adjusted Operating Results
(in millions, unaudited)
3 Qtr 2023
3 Qtr 2022
% Better/
(Worse)
2 Qtr 2023
% Better/
(Worse)
Revenues
Management and financial advice fees
$
186
$
189
(2)%
$
185
1%
Distribution fees
101
101
-
100
1%
Net investment income
215
151
42%
203
6%
Premiums, policy and contract charges
372
339
10%
368
1%
Other revenues
2
3
(33)%
2
-
Total revenues
876
783
12%
858
2%
Banking and deposit interest expense
—
—
-
—
-
Adjusted operating total net
revenues
876
783
12%
858
2%
Expenses
Distribution expenses
117
106
(10)%
120
3%
Interest credited to fixed accounts
94
97
3%
94
-
Benefits, claims, losses and settlement
expenses
168
113
(49)%
188
11%
Remeasurement (gains) losses of future
policy benefit reserves
(10
)
5
NM
(4
)
NM
Change in fair value of market risk
benefits
259
(11
)
NM
123
NM
Amortization of deferred acquisition
costs
57
56
(2)%
57
-
Interest and debt expense
12
10
(20)%
12
-
General and administrative expense
79
82
4%
79
-
Adjusted operating expenses
776
458
(69)%
669
(16)%
Pretax adjusted operating
earnings
$
100
$
325
(69)%
$
189
(47)%
NM Not Meaningful - variance equal to or
greater than 100%
Ameriprise Financial,
Inc.
Retirement & Protection
Solutions Segment Operating Metrics
(in millions, unaudited)
3 Qtr 2023
3 Qtr 2022
% Better/
(Worse)
2 Qtr 2023
% Better/
(Worse)
Variable Annuities Rollforwards
Beginning balance
$
78,549
$
75,687
4%
$
76,809
2%
Deposit
1,087
923
18%
940
16%
Withdrawals and terminations
(1,736
)
(1,419
)
(22)%
(1,712
)
(1)%
Net flows
(649
)
(496
)
(31)%
(772
)
16%
Investment performance and interest
credited
(2,816
)
(3,929
)
28%
2,512
NM
Total ending balance - contract
accumulation values
$
75,084
$
71,262
5%
$
78,549
(4)%
Variable annuities fixed
sub-accounts
$
4,395
$
4,887
(10)%
$
4,524
(3)%
Life Insurance In Force
$
198,527
$
198,510
-
$
198,686
-
Net Amount at Risk (Life)
$
37,917
$
39,400
(4)%
$
37,708
1%
Net Policyholder Reserves
VUL/UL
$
13,814
$
12,718
9%
$
14,170
(3)%
Term and whole life
175
192
(9)%
188
(7)%
Disability insurance
500
531
(6)%
539
(7)%
Other insurance
542
565
(4)%
548
(1)%
Total net policyholder reserves
$
15,031
$
14,006
7%
$
15,445
(3)%
DAC Ending Balances
Variable Annuities DAC
$
1,713
$
1,758
(3)%
$
1,722
(1)%
Life and Health DAC
$
963
$
980
(2)%
$
964
-
NM Not Meaningful - variance equal to or
greater than 100%
Ameriprise Financial,
Inc.
Corporate Segment Adjusted
Operating Results and Metrics
(in millions, unaudited)
3 Qtr 2023
3 Qtr 2022
% Better/
(Worse)
2 Qtr 2023
% Better/
(Worse)
Corporate Excluding Long Term Care and
Fixed Annuities Adjusted Operating Income Statements
Revenues
Management and financial advice fees
$
—
$
—
-
$
—
-
Distribution fees
—
—
-
—
-
Net investment income
17
(11
)
NM
24
(29)%
Premiums, policy and contract charges
—
—
-
—
-
Other revenues
2
2
-
—
-
Total revenues
19
(9
)
NM
24
(21)%
Banking and deposit interest expense
6
2
NM
3
NM
Adjusted operating total net
revenues
13
(11
)
NM
21
(38)%
Expenses
Distribution expenses
—
—
-
—
-
Interest credited to fixed accounts
—
—
-
—
-
Benefits, claims, losses and settlement
expenses
—
—
-
—
-
Remeasurement (gains) losses of future
policy benefit reserves
—
—
-
—
-
Change in fair value of market risk
benefits
—
—
-
—
-
Amortization of deferred acquisition
costs
—
—
-
—
-
Interest and debt expense
27
14
(93)%
27
-
General and administrative expense
60
48
(25)%
50
(20)%
Adjusted operating expenses
87
62
(40)%
77
(13)%
Pretax adjusted operating earnings
(loss)
$
(74
)
$
(73
)
(1)%
$
(56
)
(32)%
NM Not Meaningful - variance equal to or
greater than 100%
Ameriprise Financial,
Inc.
Corporate Segment Adjusted
Operating Results and Metrics
(in millions, unaudited)
3 Qtr 2023
3 Qtr 2022
% Better/
(Worse)
2 Qtr 2023
% Better/
(Worse)
Long Term Care Adjusted Operating
Income Statements
Revenues
Management and financial advice fees
$
—
$
—
-
$
—
-
Distribution fees
—
—
-
—
-
Net investment income
46
38
21%
44
5%
Premiums, policy and contract charges
25
25
-
23
9%
Other revenues
—
—
-
—
-
Total revenues
71
63
13%
67
6%
Banking and deposit interest expense
—
—
-
—
-
Adjusted operating total net
revenues
71
63
13%
67
6%
Expenses
Distribution expenses
(3
)
(3
)
-
(2
)
50%
Interest credited to fixed accounts
—
—
-
—
-
Benefits, claims, losses and settlement
expenses
58
65
11%
58
-
Remeasurement (gains) losses of future
policy benefit reserves
(2
)
(6
)
(67)%
4
NM
Change in fair value of market risk
benefits
—
—
-
—
-
Amortization of deferred acquisition
costs
—
—
-
—
-
Interest and debt expense
1
3
67%
1
-
General and administrative expense
7
4
(75)%
5
(40)%
Adjusted operating expenses
61
63
3%
66
8%
Pretax adjusted operating earnings
(loss)
$
10
$
—
-
$
1
NM
Long Term Care Policyholder Reserves,
net of reinsurance
$
2,456
$
2,496
(2)%
$
2,616
(6)%
NM Not Meaningful - variance equal to or
greater than 100%
Ameriprise Financial,
Inc.
Corporate Segment Adjusted
Operating Results and Metrics
(in millions, unaudited)
3 Qtr 2023
3 Qtr 2022
% Better/
(Worse)
2 Qtr 2023
% Better/
(Worse)
Fixed Annuities Adjusted Operating
Income Statements
Revenues
Management and financial advice fees
$
—
$
—
-
$
—
-
Distribution fees
1
—
-
—
-
Net investment income
8
8
-
8
-
Premiums, policy and contract charges
—
—
-
—
-
Other revenues
50
55
(9)%
52
(4)%
Total revenues
59
63
(6)%
60
(2)%
Banking and deposit interest expense
—
—
-
—
-
Adjusted operating total net
revenues
59
63
(6)%
60
(2)%
Expenses
Distribution expenses
—
1
NM
—
-
Interest credited to fixed accounts
59
61
3%
57
(4)%
Benefits, claims, losses and settlement
expenses
1
2
50%
—
-
Remeasurement (gains) losses of future
policy benefit reserves
—
—
-
—
-
Change in fair value of market risk
benefits
—
—
-
—
-
Amortization of deferred acquisition
costs
4
—
-
2
NM
Interest and debt expense
—
—
-
1
NM
General and administrative expense
3
4
25%
5
40%
Adjusted operating expenses
67
68
1%
65
(3)%
Pretax adjusted operating earnings
(loss)
$
(8
)
$
(5
)
(60)%
$
(5
)
(60)%
NM Not Meaningful - variance equal to or
greater than 100%
Ameriprise Financial,
Inc.
Eliminations (1) Adjusted
Operating Results
(in millions, unaudited)
3 Qtr 2023
3 Qtr 2022
% Better/
(Worse)
2 Qtr 2023
% Better/
(Worse)
Revenues
Management and financial advice fees
$
(38
)
$
(35
)
(9)%
$
(37
)
(3)%
Distribution fees
(283
)
(270
)
(5)%
(277
)
(2)%
Net investment income
(14
)
(5
)
NM
(12
)
(17)%
Premiums, policy and contract charges
(8
)
(8
)
-
(8
)
-
Other revenues
—
—
-
—
-
Total revenues
(343
)
(318
)
(8)%
(334
)
(3)%
Banking and deposit interest expense
(6
)
(2
)
NM
(3
)
NM
Adjusted operating total net
revenues
(337
)
(316
)
(7)%
(331
)
(2)%
Expenses
Distribution expenses
(304
)
(293
)
4%
(299
)
2%
Interest credited to fixed accounts
—
—
-
—
-
Benefits, claims, losses and settlement
expenses
(4
)
(5
)
(20)%
(5
)
(20)%
Remeasurement (gains) losses of future
policy benefit reserves
—
—
-
—
-
Change in fair value of market risk
benefits
—
—
-
—
-
Amortization of deferred acquisition
costs
—
—
-
—
-
Interest and debt expense
(9
)
(3
)
NM
(9
)
-
General and administrative expense
(20
)
(15
)
33%
(18
)
11%
Adjusted operating expenses
(337
)
(316
)
7%
(331
)
2%
Pretax adjusted operating earnings
(loss)
$
—
$
—
-
$
—
-
(1) The majority of the amounts represent
the impact of inter-segment transfer pricing for both revenues and
expenses.
NM Not Meaningful - variance equal to or
greater than 100%
Ameriprise Financial,
Inc.
Capital Information
(in millions, unaudited)
September 30,
2023
September 30,
2022
June 30, 2023
Long-term Debt Summary
Senior notes
$
3,550
$
2,800
$
3,550
Finance lease liabilities
22
33
23
Other (1)
(15
)
(11
)
(16
)
Total Ameriprise Financial long-term
debt
3,557
2,822
3,557
Non-recourse debt of consolidated
investment entities
2,222
2,401
2,264
Total long-term debt
$
5,779
$
5,223
$
5,821
Total Ameriprise Financial long-term
debt
$
3,557
$
2,822
$
3,557
Finance lease liabilities
(22
)
(33
)
(23
)
Other (1)
15
11
16
Total Ameriprise Financial long-term
debt excluding finance lease liabilities and other
$
3,550
$
2,800
$
3,550
Total equity (2)
$
3,825
$
3,618
$
4,080
Equity of consolidated investment
entities
(10
)
(6
)
(10
)
Total equity excluding CIEs
$
3,815
$
3,612
$
4,070
Total Ameriprise Financial capital
$
7,382
$
6,440
$
7,637
Total Ameriprise Financial capital
excluding finance lease liabilities, other and equity of CIEs
$
7,365
$
6,412
$
7,620
Debt to capital
Total Ameriprise Financial long-term debt
to total Ameriprise Financial capital
48.2
%
43.8
%
46.6
%
Total Ameriprise Financial long-term debt
to total Ameriprise Financial capital excluding finance lease
liabilities, other and equity of CIEs (2)
48.2
%
43.7
%
46.6
%
Available Capital for Capital
Adequacy
$
5,247
$
5,259
$
5,011
(1) Includes adjustments for net
unamortized discounts, debt issuance costs and other lease
obligations.
(2) Includes accumulated other
comprehensive income, net of tax.
Ameriprise Financial,
Inc.
Consolidated Balance
Sheets
(in millions, unaudited)
September 30,
2023
December 31,
2022
Assets
Cash and cash equivalents
$
7,010
$
6,964
Cash of consolidated investment
entities
91
133
Investments
51,995
44,524
Investments of consolidated investment
entities
2,166
2,354
Market risk benefits
1,644
1,015
Separate account assets
72,354
73,962
Receivables
14,800
15,595
Receivables of consolidated investment
entities
29
20
Deferred acquisition costs
2,725
2,777
Restricted and segregated cash and
investments
1,569
2,229
Other assets
10,753
9,277
Other assets of consolidated investment
entities
—
2
Total Assets
$
165,136
$
158,852
Liabilities
Policyholder account balances, future
policy benefits and claims
$
35,526
$
34,132
Market risk benefits
1,525
2,118
Separate account liabilities
72,354
73,962
Customer deposits
36,109
30,775
Short-term borrowings
201
201
Long-term debt
3,557
2,821
Debt of consolidated investment
entities
2,222
2,363
Accounts payable and accrued expenses
2,307
2,242
Other liabilities
7,473
6,316
Other liabilities of consolidated
investment entities
37
119
Total Liabilities
161,311
155,049
Equity
Ameriprise Financial
Common shares ($.01 par)
3
3
Additional paid-in capital
9,744
9,517
Retained earnings
21,670
19,918
Treasury stock
(24,752
)
(23,089
)
Accumulated other comprehensive income,
net of tax
(2,840
)
(2,546
)
Total Equity
3,825
3,803
Total Liabilities and Equity
$
165,136
$
158,852
Supplemental Non-GAAP Information:
Available Capital for Capital
Adequacy
$
5,247
$
5,209
Ameriprise Financial,
Inc.
Disclosed Items - Included in
Adjusted Operating Earnings
(in millions, unaudited)
3 Qtr 2023
RPS
Corporate
Valuation
Assumption &
Model Changes (1)
Valuation
Assumption &
Model Changes (1)
Revenues
Management and financial advice fees
$
—
$
—
Distribution fees
—
—
Net investment income
—
—
Premiums, policy and contract charges
1
—
Other revenues
—
—
Total revenues
1
—
Banking and deposit interest expense
—
—
Adjusted operating total net
revenues
1
—
Expenses
Distribution expenses
—
—
Interest credited to fixed accounts
—
—
Benefits, claims, losses and settlement
expenses
(17
)
—
Remeasurement (gains) losses of future
policy benefit reserves
(6
)
(5
)
Change in fair value of market risk
benefits
128
—
Amortization of deferred acquisition
costs
—
—
Interest and debt expense
—
—
General and administrative expense
—
—
Adjusted operating expenses
105
(5
)
Pretax adjusted operating earnings
(loss)
$
(104
)
$
5
(1) Net pretax impact of model changes and
the annual review/updating of valuation assumptions, including the
annual long term care review.
Ameriprise Financial,
Inc.
Reconciliation Table:
Earnings
Quarter Ended
September 30,
Per Diluted Share
Quarter Ended
September 30,
% Better/
(Worse)
(in millions, except per share amounts,
unaudited)
2023
2022
2023
2022
Net income
$
872
$
1,061
$
8.14
$
9.41
(13)%
Adjustments:
Net realized investment gains (losses)
(1)
(38
)
(88
)
(0.35
)
(0.78
)
Market impact on non-traditional
long-duration products (1)
211
405
1.96
3.60
Mean reversion-related impacts (1)
—
(1
)
—
(0.01
)
Integration/restructuring charges (1)
(12
)
(11
)
(0.11
)
(0.10
)
Net income (loss) attributable to
consolidated investment entities
—
(3
)
—
(0.03
)
Tax effect of adjustments (2)
(34
)
(64
)
(0.32
)
(0.57
)
Adjusted operating earnings
$
745
$
823
$
6.96
$
7.30
(5)%
Pretax impact of annual unlocking
(99
)
135
(0.92
)
1.20
Tax effect of annual unlocking
21
(28
)
0.20
(0.25
)
Adjusted operating earnings excluding
unlocking
$
823
$
716
$
7.68
$
6.35
21%
Weighted average common shares
outstanding:
Basic
104.9
110.5
Diluted
107.1
112.7
(1) Pretax adjusted operating
adjustment.
(2) Calculated using the statutory tax
rate of 21%.
Ameriprise Financial,
Inc.
Reconciliation Table:
Earnings
Year-to-date
September 30,
Per Diluted Share
Year-to-date
September 30,
% Better/
(Worse)
(in millions, except per share amounts,
unaudited)
2023
2022
2023
2022
Net income
$
2,179
$
2,500
$
20.08
$
21.85
(8)%
Adjustments:
Net realized investment gains (losses)
(1)
(32
)
(86
)
(0.29
)
(0.75
)
Market impact on non-traditional
long-duration products (1)
(137
)
566
(1.27
)
4.95
Mean reversion-related impacts (1)
—
(3
)
—
(0.03
)
Integration/restructuring charges (1)
(47
)
(35
)
(0.43
)
(0.31
)
Net income (loss) attributable to
consolidated investment entities
—
(2
)
—
(0.02
)
Tax effect of adjustments (2)
45
(93
)
0.41
(0.81
)
Adjusted operating earnings
$
2,350
$
2,153
$
21.66
$
18.82
15%
Pretax impact of annual unlocking
(99
)
135
(0.91
)
1.18
Tax effect of annual unlocking
21
(28
)
0.19
(0.24
)
Adjusted operating earnings excluding
unlocking
$
2,428
$
2,046
$
22.38
$
17.88
25%
Weighted average common shares
outstanding:
Basic
106.4
112.1
Diluted
108.5
114.4
(1) Pretax adjusted operating
adjustment.
(2) Calculated using the statutory tax
rate of 21%.
Ameriprise Financial,
Inc.
Reconciliation Table: Pretax
Adjusted Operating Earnings and Pretax Adjusted Operating
Margin
Quarter Ended September
30,
(in millions, unaudited)
2023
2022
Total net revenues
$
3,925
$
3,484
Adjustments:
Net realized investment gains (losses)
(38
)
(88
)
Market impact on non-traditional
long-duration products
3
(1
)
Mean Reversion related impacts
—
—
Integration/restructuring charges
—
—
CIEs revenue
45
31
Adjusted operating total net
revenues
$
3,915
$
3,542
Annual unlocking
1
(1
)
Adjusted operating total net revenues
excluding unlocking
$
3,914
$
3,543
Total expenses
$
2,808
$
2,149
Adjustments:
CIEs expenses
45
34
Integration/restructuring charges
12
11
Market impact on non-traditional
long-duration products
(208
)
(406
)
Mean reversion-related impacts
—
1
Adjusted operating expenses
$
2,959
$
2,509
Annual unlocking
100
(136
)
Adjusted operating total net expenses
excluding unlocking
$
2,859
$
2,645
Pretax income
$
1,117
$
1,335
Pretax adjusted operating earnings
$
956
$
1,033
Pretax adjusted operating earnings
excluding unlocking
$
1,055
$
898
Pretax income margin
28.5
%
38.3
%
Pretax adjusted operating margin
24.4
%
29.2
%
Pretax adjusted operating margin excluding
unlocking
27.0
%
25.3
%
Ameriprise Financial,
Inc.
Reconciliation Table:
Available Capital for Capital Adequacy
(in millions, unaudited)
September 30,
2023
September 30,
2022
June 30, 2023
Ameriprise Financial GAAP
Equity
$
3,825
$
3,618
$
4,080
Less: AOCI
(2,840
)
(2,665
)
(2,349
)
Ameriprise Financial GAAP Equity, excl
AOCI
6,665
6,283
6,429
Less: RiverSource Life Insurance Co. GAAP
Equity, excluding AOCI
2,084
1,882
1,855
Add: RiverSource Life Insurance Co.
statutory total adjusted capital
2,842
2,998
2,653
Less: Goodwill and intangibles
2,487
2,415
2,525
Add: Other adjustments
311
275
309
Available Capital for Capital
Adequacy
$
5,247
$
5,259
$
5,011
Ameriprise Financial,
Inc.
Reconciliation Table:
Effective Tax Rate
Quarter Ended
September 30, 2022
(in millions, unaudited)
GAAP
Adjusted Operating
Pretax income
$
1,335
$
1,033
Income tax provision
$
274
$
210
Effective tax rate
20.5
%
20.3
%
Ameriprise Financial,
Inc.
Reconciliation Table:
Effective Tax Rate
Quarter Ended
September 30, 2023
(in millions, unaudited)
GAAP
Adjusted Operating
Pretax income
$
1,117
$
956
Income tax provision
$
245
$
211
Pretax income excluding accrual for
regulatory matter
$
976
Income tax provision
$
211
Effective tax rate
21.8
%
22.1
%
Effective tax rate excluding accrual for
regulatory matter
21.6
%
Ameriprise Financial,
Inc.
Reconciliation Table:
Effective Tax Rate
Year-to-date
September 30, 2023
(in millions, unaudited)
GAAP
Adjusted Operating
Pretax income
$
2,740
$
2,956
Income tax provision
$
561
$
606
Effective tax rate
20.5
%
20.5
%
Ameriprise Financial,
Inc.
Reconciliation Table: Advice
& Wealth Management Operating Margin
Quarter Ended
September 30, 2023
% Better/
(Worse)
(in millions, unaudited)
2023
2022
Adjusted operating net revenues
$
2,407
$
2,137
13%
Distribution expenses
1,253
1,149
Interest and debt expense
6
3
General and administrative expenses
419
390
Adjusted operating expenses
1,678
1,542
(9)%
Less: Regulatory accrual
20
—
Adjusted operating expenses excluding
accrual for regulatory matter
1,658
1,542
(8)%
Pretax adjusted operating earnings
$
729
$
595
23%
Pretax adjusted operating earnings
excluding accrual for regulatory matter
$
749
$
595
26%
Pretax adjusted operating margin
30.3
%
27.8
%
250bps
Pretax adjusted operating margin excluding
accrual for regulatory matter
31.1
%
27.8
%
330bps
Ameriprise Financial,
Inc.
Reconciliation Table: Advice
& Wealth Management General and Administrative Expense
Quarter Ended
September 30, 2023
% Better/
(Worse)
(in millions, unaudited)
2023
2022
Total G&A Expense
$
419
$
390
(7)%
Less: Regulatory accrual
20
—
Total G&A Expense excluding accrual
for regulatory matter
$
399
$
390
(2)%
Ameriprise Financial,
Inc.
Reconciliation Table: Asset
Management General and Administrative Expense
Quarter Ended
September 30, 2023
% Better/
(Worse)
(in millions, unaudited)
2023
2022
Total G&A Expense
$
390
$
391
-
Less: Impact of foreign exchange
translation
12
—
Total G&A Expense excluding impact of
foreign exchange translation
$
378
$
391
3%
Ameriprise Financial,
Inc.
Reconciliation Table: Return
on Equity (ROE) Excluding Accumulated
Other Comprehensive Income
“AOCI”
Twelve Months Ended
September 30,
(in millions, unaudited)
2023
2022
Net income
$
2,828
$
3,200
Less: Adjustments (1)
(254
)
332
Adjusted operating earnings
3,082
2,868
Less: Annual unlocking (2)
(78
)
107
Adjusted operating earnings excluding
unlocking
$
3,160
$
2,761
Total Ameriprise Financial, Inc.
shareholders’ equity
$
3,894
$
4,367
Less: Accumulated other comprehensive
income, net of tax
(2,477
)
(1,383
)
Total Ameriprise Financial, Inc.
shareholders’ equity excluding AOCI
6,371
5,750
Less: Equity impacts attributable to the
consolidated investment entities
(3
)
1
Adjusted operating equity
$
6,374
$
5,749
Return on equity excluding AOCI
44.4
%
55.7
%
Adjusted operating return on equity
excluding AOCI (3)
48.4
%
49.9
%
Adjusted operating return on equity
excluding AOCI and unlocking (3)
49.6
%
48.0
%
(1) Adjustments reflect the sum of
after-tax net realized investment gains/losses, net of the
reinsurance accrual; the market impact on non-traditional
long-duration products (including variable and fixed deferred
annuity contracts and UL insurance contracts), net of hedges and
related reinsurance accrual; mean reversion related impacts; block
transfer reinsurance transaction impacts; the market impact of
hedges to offset interest rate and currency changes on unrealized
gains or losses for certain investments; gain or loss on disposal
of a business that is not considered discontinued operations;
integration and restructuring charges; income (loss) from
discontinued operations; and net income (loss) from consolidated
investment entities. After-tax is calculated using the statutory
tax rate of 21%.
(2) After-tax is calculated using the
statutory tax rate of 21%.
(3) Adjusted operating return on equity,
excluding AOCI is calculated using adjusted operating earnings in
the numerator, and Ameriprise Financial shareholders’ equity,
excluding AOCI and the impact of consolidating investment entities
using a five-point average of quarter-end equity in the
denominator. After-tax is calculated using the statutory tax rate
of 21%.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231025198053/en/
Investor Relations:
Alicia A. Charity Ameriprise Financial (612) 671-2080
alicia.a.charity@ampf.com
Stephanie M. Rabe Ameriprise Financial (612) 671-4085
Media Relations:
Paul W. Johnson Ameriprise Financial (612) 671-0625
paul.w.johnson@ampf.com
Ameriprise Financial (NYSE:AMP)
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