Ameriprise Financial, Inc. (NYSE: AMP):
Earnings Per Diluted Share
Return on Equity, ex AOCI (1)
Q3 2024
Q3 2024
GAAP
$
5.00
GAAP
40.1
%
Adjusted Operating
$
8.10
Adjusted Operating
49.6
%
Adjusted Operating, excluding unlocking
and severance expense
$
9.02
Adjusted Operating, excluding
unlocking
50.7
%
- Third quarter adjusted operating earnings per diluted share
increased 17 percent to $9.02 excluding unlocking and severance
expense associated with the company’s initiatives to enhance
operational efficiency and effectiveness.
- Third quarter GAAP net income per diluted share was $5.00
compared to $8.14 a year ago, primarily from market impacts on the
valuation of derivatives and market risk benefits.
- Assets under management and administration reached $1.5
trillion, up 22 percent from strong client net inflows and market
appreciation.
- Adjusted operating net revenues increased 11 percent from
organic growth, strong equity markets and higher spread
revenues.
- General and administrative expenses continued to be well
managed and demonstrate the company’s focus on operational
efficiency and effectiveness.
- Pretax adjusted operating margin was 27 percent(2) and adjusted
operating return on equity was 51 percent(3).
- The company returned $713 million of capital to shareholders in
the quarter, demonstrating its balance sheet strength and strong
free cash flow generation.
Perspective from Jim Cracchiolo,
Chairman and Chief Executive Officer
“Ameriprise delivered another very good
quarter further demonstrating the strength of our client and
advisor value propositions, complementary businesses, and strategic
focus.
"We’re generating strong revenue and
earnings growth across our business. With the positive market
environment and our planning expertise, clients are investing more
broadly. Flows into fee-based investment advisory accounts
increased significantly, transactional activity remained strong and
advisor productivity reached another new high.
"Across the firm, we continue to drive
operating efficiencies while investing for growth. Our financial
strength and free cash flow generation remain key differentiators
and provide flexibility as we navigate market cycles and
consistently generate strong results and return capital to
shareholders.”
(1) Return on equity excluding AOCI is
calculated on a trailing 12-month basis.
(2) Excludes unlocking and severance.
(3) Excludes unlocking. 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)
2024
2023
2024
2023
GAAP net income
$
511
$
872
(41
)%
$
2,330
$
2,179
7
%
Adjusted operating earnings
$
828
$
745
11
%
$
2,588
$
2,350
10
%
Adjusted operating earnings excluding
unlocking (see reconciliation on p. 24 & 25)
$
902
$
823
10
%
$
2,662
$
2,428
10
%
Adjusted operating earnings excluding
unlocking and severance expense (see reconciliation on p. 24 &
25)
$
921
$
829
11
%
$
2,705
$
2,434
11
%
GAAP net income per diluted share
$
5.00
$
8.14
(39
)%
$
22.53
$
20.08
12
%
Adjusted operating earnings per diluted
share
$
8.10
$
6.96
16
%
$
25.03
$
21.66
16
%
Adjusted operating earnings per diluted
share excluding unlocking (see reconciliation on p. 24 &
25)
$
8.83
$
7.68
15
%
$
25.74
$
22.38
15
%
Adjusted operating earnings per diluted
share excluding unlocking and severance expense (see reconciliation
on p. 24 & 25)
$
9.02
$
7.74
17
%
$
26.15
$
22.43
17
%
GAAP Return on Equity, ex. AOCI
40.1
%
44.4
%
40.1
%
44.4
%
Adjusted Operating Return on Equity, ex.
AOCI
49.6
%
48.4
%
49.6
%
48.4
%
Adjusted Operating Return on Equity, ex.
AOCI and unlocking (see reconciliation on p. 29)
50.7
%
49.6
%
50.7
%
49.6
%
GAAP Equity, ex. AOCI
$
6,816
$
6,665
2
%
$
6,816
$
6,665
2
%
Available Capital for Capital Adequacy
(see reconciliation on p. 27)
$
5,523
$
5,247
5
%
$
5,523
$
5,247
5
%
Weighted average common shares
outstanding:
Basic
100.4
104.9
101.6
106.4
Diluted
102.2
107.1
103.4
108.5
Third quarter 2024 GAAP results included unfavorable market
impacts on the valuation of derivatives and market risk benefits,
while the prior year quarter included favorable market impacts on
the valuation of derivatives and market risk benefits.
The company completed its annual actuarial assumption update in
the quarter, which resulted in an unfavorable after-tax impact of
$74 million or $0.73 per share. This was primarily related to
updated persistency assumptions for variable annuities.
In addition, adjusted operating after-tax results included
severance expenses of $19 million in the third quarter of 2024 and
$43 million on a year-to-date basis. Severance was related to the
company’s initiatives to enhance operational efficiency and
effectiveness to further strengthen the client experience and
future profitability.
Ameriprise Financial,
Inc.
Advice & Wealth Management
Segment Adjusted Operating Results
Quarter Ended September
30,
% Better/
(Worse)
(in millions, unaudited)
2024
2023
Adjusted operating net revenues
$
2,742
$
2,407
14
%
Distribution expenses
1,488
1,253
(19
)%
Interest and debt expense
9
6
(50
)%
General and administrative expenses
419
419
—
%
Adjusted operating expenses
1,916
1,678
(14
)%
Pretax adjusted operating earnings
$
826
$
729
13
%
Pretax adjusted operating margin
30.1
%
30.3
%
(20) bps
Quarter Ended September
30,
% Better/
(Worse)
(in billions, unless otherwise noted)
2024
2023
Total client assets
$
1,024
$
816
26
%
Total client net flows
$
8.6
$
8.9
(3
)%
Wrap net flows
$
8.0
$
5.4
48
%
AWM cash balances
$
40.1
$
40.5
(1
)%
Adjusted operating net revenue per advisor
(TTM in thousands)
$
997
$
901
11
%
Advice & Wealth Management continued to demonstrate
profitable organic growth with record high pretax adjusted
operating earnings of $826 million and margins exceeded 30 percent
driven by core business growth, as well as higher sustainable net
investment income at the bank.
Adjusted operating net revenues increased 14 percent to $2.7
billion from growth in client assets, increased transactional
activity and 6 percent growth in net investment income at the
bank.
Adjusted operating expenses increased 14 percent to $1.9 billion
compared to a year ago. General and administrative expenses were
unchanged at $419 million. Excluding the $20 million regulatory
accrual a year ago, general and administrative expenses grew 5
percent, primarily from volume-related expenses due to business
growth.
Clients and advisors remained engaged and focused on positioning
portfolios to meet financial planning goals across market
cycles.
- Total client assets grew 26 percent to an all-time high of $1.0
trillion, with wrap assets up 28 percent to $569 billion.
- Wrap flows grew to $8.0 billion or a 6 percent annualized flow
rate, an early indication of client preferences returning to
advisory products.
- Transactional activity increased 19 percent with strong growth
across all product areas.
- Total client cash was $83 billion, up $10.5 billion from a year
ago. In the quarter, growth in third-party money market funds was
partially offset by declines in term products such as brokered CDs
and certificates.
- Client cash sweep balances were stable at approximately $28
billion.
- Bank assets grew 7 percent to $23.2 billion, providing
sustainable net investment income in this forecasted lower rate
environment.
- Adjusted operating net revenue per advisor on a trailing
12-month basis was $997,000, up 11 percent from enhanced
productivity, business growth and market appreciation.
- Advisor headcount increased to 10,368, which reflects the
addition of 71 experienced advisors in the quarter and continued
strong advisor retention.
Ameriprise Financial,
Inc.
Asset Management Segment
Adjusted Operating Results
Quarter Ended September
30,
% Better/
(Worse)
(in millions, unaudited)
2024
2023
Adjusted operating net revenues
$
882
$
826
7
%
Distribution expenses
250
234
(7
)%
Amortization of deferred acquisition
costs
2
1
NM
Interest and debt expense
2
2
—
%
General and administrative expenses
383
390
2
%
Adjusted operating expenses
637
627
(2
)%
Pretax adjusted operating earnings
$
245
$
199
23
%
Net pretax adjusted operating margin
(1)
40.9
%
35.7
%
Quarter Ended September
30,
% Better/
(Worse)
(in billions)
2024
2023
Total segment AUM
$
672
$
587
14
%
Net Flows
Global Retail net AUM flows, ex. legacy
insurance partners
$
(2.7
)
$
(3.8
)
29
%
Model delivery AUA flows (2)
1.2
0.2
NM
Total retail net AUM flows and model
delivery AUA flows (2)
(1.5
)
(3.6
)
58
%
Global Institutional net AUM flows, ex.
legacy insurance partners
—
0.5
NM
Legacy insurance partners AUM flows
(0.9
)
(0.9
)
—
%
Total Net AUM and AUA flows (2)
$
(2.4
)
$
(4.0
)
40
%
(1) See reconciliation on page 13.
(2) Model Delivery Assets Under Advisement
flows are 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 grew 7
percent to $882 million and pretax adjusted operating earnings
increased 23 percent to $245 million. Financial results reflected
equity market appreciation and the positive impact from expense
management actions, which more than offset the cumulative impact of
net outflows. Net pretax adjusted operating margin was 41 percent
and above the company’s targeted range.
Adjusted operating expenses increased 2 percent. General and
administrative expenses improved 2 percent from a year ago,
reflecting initial benefits from the company’s initiatives to
enhance operational efficiency and effectiveness to further
strengthen the client experience and future profitability.
Total assets under management increased 14 percent to $672
billion. The underlying fee rate remained stable.
Total net outflows improved 40 percent to $2.4 billion and
included $0.9 billion of outflows related to legacy insurance
partners. Retail and model delivery net outflows were $1.5 billion,
representing a $2.1 billion improvement from the prior year from
stronger gross sales in both North America and EMEA, as well as
strong model delivery net inflows.
Ameriprise Financial,
Inc.
Retirement & Protection
Solutions Segment Adjusted Operating Results
Quarter Ended September
30,
% Better/
(Worse)
(in millions, unaudited)
2024
2023
Adjusted operating net revenues
$
973
$
876
11
%
Adjusted operating expenses
855
776
(10
)%
Pretax adjusted operating earnings
(including unlocking)
$
118
$
100
18
%
Unlocking
(90
)
(104
)
13
%
Pretax adjusted operating earnings
excluding unlocking
$
208
$
204
2
%
Retirement & Protection Solutions pretax adjusted
operating earnings excluding unlocking increased 2 percent to $208
million or $603 million on a year-to-date basis. The strong and
consistent performance of the business reflects the benefit from
stronger interest earnings and higher equity markets partially
offset by higher distribution expenses associated with continued
strong sales levels. These high-quality books of business continued
to generate strong free cash flow and return on capital with a
differentiated risk profile.
Retirement & Protection Solutions sales increased 15 percent
to $1.4 billion fueled by Advice & Wealth Management client
demand for structured variable annuities and variable universal
life products.
Ameriprise Financial,
Inc.
Corporate & Other Segment
Adjusted Operating Results
Quarter Ended September
30,
% Better/
(Worse)
(in millions, unaudited)
2024
2023
Corporate & Other
$
(145
)
$
(74
)
(96
)%
Closed Blocks (1)
2
2
—
%
Pretax adjusted operating earnings
$
(143
)
$
(72
)
(99
)%
Unlocking
(4
)
5
NM
Pretax adjusted operating earnings
excluding unlocking
$
(139
)
$
(77
)
(81
)%
Long Term Care excluding unlocking
$
13
$
5
NM
Fixed Annuities excluding unlocking
(7
)
(8
)
13
%
Pretax adjusted operating earnings
excluding unlocking
$
6
$
(3
)
NM
(1) Long Term Care and Fixed
Annuities.
NM Not Meaningful - variance equal to or
greater than 100%
Corporate & Other, excluding Closed Blocks, pretax
adjusted operating loss was $145 million, of which $56 million was
related to $34 million of severance and severance program expenses,
as well as $22 million of expenses to accelerate the firm’s
transition to cloud-based technology platforms, higher compensation
accruals related to strong performance and mark-to-market impacts
on share-based compensation.
Long Term Care pretax adjusted operating earnings
excluding unlocking were $13 million, or $41 million year-to-date,
a continuation of an improved performance trend.
Fixed Annuities pretax adjusted operating loss excluding
unlocking was in line with expectations at $7 million.
Taxes
The operating effective tax rate decreased to 20.8 percent for
the third quarter and 20.1 percent on a year-to-date basis. The
effective tax rate is expected to be in 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 130 years. With
extensive investment advice, global asset management capabilities
and insurance solutions, and a nationwide network of more than
10,000 financial advisors, we have the strength and expertise to
serve the full range of individual and institutional investors'
financial needs.
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, 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 estimating the financial impacts and future
profitability arising from the company’s initiatives to enhance
operational efficiency and effectiveness;
- statements about higher sustainable net investment income at
the bank and the forecast for a lower rate environment;
- statements about continued improved performance of long term
care operating earnings;
- statements estimating the expected full year 2024 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, 2023 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,
2024.
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 2024
3 Qtr 2023
% Better/
(Worse)
2 Qtr 2024
% Better/
(Worse)
Revenues
Management and financial advice fees
$
2,573
$
2,287
13
%
$
2,456
5
%
Distribution fees
513
463
11
%
505
2
%
Net investment income
934
809
15
%
921
1
%
Premiums, policy and contract charges
409
390
5
%
381
7
%
Other revenues
131
127
3
%
129
2
%
Total revenues
4,560
4,076
12
%
4,392
4
%
Banking and deposit interest expense
163
151
(8
)%
172
5
%
Total net revenues
4,397
3,925
12
%
4,220
4
%
Expenses
Distribution expenses
1,539
1,297
(19
)%
1,450
(6
)%
Interest credited to fixed accounts
118
139
15
%
185
36
%
Benefits, claims, losses and settlement
expenses
430
120
NM
331
(30
)%
Remeasurement (gains) losses of future
policy benefit reserves
(22
)
(12
)
83
%
(8
)
NM
Change in fair value of market risk
benefits
566
168
NM
110
NM
Amortization of deferred acquisition
costs
59
62
5
%
61
3
%
Interest and debt expense
87
84
(4
)%
83
(5
)%
General and administrative expense
975
950
(3
)%
957
(2
)%
Total expenses
3,752
2,808
(34
)%
3,169
(18
)%
Pretax income
645
1,117
(42
)%
1,051
(39
)%
Income tax provision
134
245
(45
)%
222
(40
)%
Net income
$
511
$
872
(41
)%
$
829
(38
)%
Earnings per share
Basic earnings per share
$
5.09
$
8.31
$
8.16
Earnings per diluted share
$
5.00
$
8.14
$
8.02
Weighted average common shares
outstanding
Basic
100.4
104.9
101.6
Diluted
102.2
107.1
103.4
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 2024
3 Qtr 2023
% Better/
(Worse)
2 Qtr 2024
% Better/
(Worse)
Assets Under Management and
Administration
Advice & Wealth Management AUM
$
565,152
$
440,703
28
%
$
531,268
6
%
Asset Management AUM
672,110
587,171
14
%
641,880
5
%
Corporate AUM
523
349
50
%
490
7
%
Eliminations
(45,839
)
(37,795
)
(21
)%
(44,136
)
(4
)%
Total Assets Under Management
1,191,946
990,428
20
%
1,129,502
6
%
Total Assets Under
Administration
314,173
242,336
30
%
298,468
5
%
Total AUM and AUA
$
1,506,119
$
1,232,764
22
%
$
1,427,970
5
%
S&P 500
Daily average
5,546
4,456
24
%
5,253
6
%
Period end
5,762
4,288
34
%
5,460
6
%
Weighted Equity Index (WEI) (1)
Daily average
3,528
2,903
22
%
3,358
5
%
Period end
3,664
2,788
31
%
3,456
6
%
Common shares
Beginning balance
98.4
102.8
(4
)%
99.6
(1
)%
Repurchases
(1.3
)
(1.5
)
13
%
(1.3
)
—
%
Issuances
0.2
0.3
(33
)%
0.1
NM
Other
(0.1
)
(0.2
)
50
%
—
—
%
Total common shares outstanding
97.2
101.4
(4
)%
98.4
(1
)%
Restricted stock units
2.5
2.6
(4
)%
2.6
(4
)%
Total basic common shares
outstanding
99.7
104.0
(4
)%
101.0
(1
)%
Total potentially dilutive shares
1.9
2.2
(14
)%
1.8
6
%
Total diluted shares
101.6
106.2
(4
)%
102.8
(1
)%
Capital Returned to
Shareholders
Dividends paid
$
150
$
143
5
%
$
151
(1
)%
Common stock share repurchases
563
520
8
%
542
4
%
Total Capital Returned to
Shareholders
$
713
$
663
8
%
$
693
3
%
(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 2024
3 Qtr 2023
% Better/
(Worse)
2 Qtr 2024
% Better/
(Worse)
Revenues
Management and financial advice fees:
Advisory fees
$
1,451
$
1,228
18
%
$
1,361
7
%
Financial planning fees
111
102
9
%
110
1
%
Transaction and other fees
97
94
3
%
100
(3
)%
Total management and financial advice
fees
1,659
1,424
17
%
1,571
6
%
Distribution fees:
Mutual funds
209
184
14
%
199
5
%
Insurance and annuity
266
226
18
%
260
2
%
Off-Balance sheet brokerage cash
32
58
(45
)%
40
(20
)%
Other products
107
84
27
%
109
(2
)%
Total distribution fees
614
552
11
%
608
1
%
Net investment income
554
517
7
%
560
(1
)%
Other revenues
78
65
20
%
77
1
%
Total revenues
2,905
2,558
14
%
2,816
3
%
Banking and deposit interest expense
163
151
(8
)%
172
5
%
Adjusted operating total net
revenues
2,742
2,407
14
%
2,644
4
%
Expenses
Distribution expenses
1,488
1,253
(19
)%
1,403
(6
)%
Interest and debt expense
9
6
(50
)%
10
10
%
General and administrative expense
419
419
—
%
409
(2
)%
Adjusted operating expenses
1,916
1,678
(14
)%
1,822
(5
)%
Pretax adjusted operating
earnings
$
826
$
729
13
%
$
822
—
%
Pretax adjusted operating
margin
30.1
%
30.3
%
31.1
%
Ameriprise Financial,
Inc.
Advice & Wealth Management
Segment Operating Metrics
(in millions unless otherwise noted,
unaudited)
3 Qtr 2024
3 Qtr 2023
% Better/
(Worse)
2 Qtr 2024
% Better/
(Worse)
AWM Total Client Assets
$
1,024,467
$
816,019
26
%
$
972,135
5
%
Total Client Flows
$
8,613
$
8,901
(3
)%
$
6,604
30
%
Total Wrap Accounts
Beginning assets
$
534,990
$
454,689
18
%
$
521,722
3
%
Net flows
7,992
5,391
48
%
7,521
6
%
Market appreciation (depreciation) and
other
26,072
(16,019
)
NM
5,747
NM
Total wrap ending assets
$
569,054
$
444,061
28
%
$
534,990
6
%
Advisory wrap account assets ending
balance (1)
$
563,438
$
439,341
28
%
$
529,642
6
%
Brokerage Cash & Certificates
Balances
On-balance sheet (Net Investment
Income)
On-balance sheet - broker dealer
$
2,633
$
2,554
3
%
$
2,279
16
%
On-balance sheet - bank
21,731
20,970
4
%
21,466
1
%
On-balance sheet - certificate
11,998
12,612
(5
)%
12,526
(4
)%
Total on-balance sheet
$
36,362
$
36,136
1
%
$
36,271
—
%
Off-balance sheet (Distribution
Fees)
Off-balance sheet - broker dealer
$
3,714
$
4,347
(15
)%
$
4,359
(15
)%
Total brokerage cash & certificates
balances
$
40,076
$
40,483
(1
)%
$
40,630
(1
)%
Gross Fee Yield
On-balance sheet - broker dealer
5.27
%
5.30
%
5.34
%
On-balance sheet - bank
5.02
%
4.97
%
5.15
%
On-balance sheet - certificates
5.63
%
5.40
%
5.66
%
Off-balance sheet - broker dealer
3.28
%
4.28
%
3.08
%
Financial Advisors
Employee advisors
2,212
2,104
5
%
2,236
(1
)%
Franchisee advisors
8,156
8,154
—
%
8,156
—
%
Total financial advisors
10,368
10,258
1
%
10,392
—
%
Advisor Retention
Employee
92.5
%
92.2
%
93.2
%
Franchisee
92.5
%
92.8
%
92.6
%
(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 2024
3 Qtr 2023
% Better/
(Worse)
2 Qtr 2024
% Better/
(Worse)
Revenues
Management and financial advice fees:
Asset management fees:
Retail
$
540
$
499
8
%
$
522
3
%
Institutional
143
148
(3
)%
140
2
%
Model delivery (1)
21
17
24
%
21
—
%
Transaction and other fees
52
50
4
%
52
—
%
Revenue from other sources (2)
4
3
33
%
3
33
%
Total management and financial advice
fees
760
717
6
%
738
3
%
Distribution fees:
Mutual funds
57
53
8
%
56
2
%
Insurance and annuity
41
39
5
%
40
3
%
Total distribution fees
98
92
7
%
96
2
%
Net investment income
17
10
70
%
12
42
%
Other revenues
7
7
—
%
2
NM
Total revenues
882
826
7
%
848
4
%
Banking and deposit interest expense
—
—
—
%
—
—
%
Adjusted operating total net
revenues
882
826
7
%
848
4
%
Expenses
Distribution expenses
250
234
(7
)%
244
(2
)%
Amortization of deferred acquisition
costs
2
1
NM
1
NM
Interest and debt expense
2
2
—
%
1
NM
General and administrative expense
383
390
2
%
384
—
%
Adjusted operating expenses
637
627
(2
)%
630
(1
)%
Pretax adjusted operating
earnings
$
245
$
199
23
%
$
218
12
%
Net Pretax Adjusted Operating Margin
Reconciliation
Adjusted operating total net revenues
$
882
$
826
7
%
$
848
4
%
Distribution pass through revenues
(198
)
(186
)
(6
)%
(192
)
(3
)%
Subadvisory and other pass through
revenues
(104
)
(96
)
(8
)%
(98
)
(6
)%
Net adjusted operating revenues
$
580
$
544
7
%
$
558
4
%
Pretax adjusted operating earnings
$
245
$
199
23
%
$
218
12
%
Adjusted operating net investment
income
(17
)
(10
)
(70
)%
(12
)
(42
)%
Amortization of intangibles
9
5
80
%
4
NM
Net adjusted operating earnings
$
237
$
194
22
%
$
210
13
%
Pretax adjusted operating margin
27.8
%
24.1
%
25.7
%
Net pretax adjusted operating margin
(3)
40.9
%
35.7
%
37.6
%
Total Performance fees (4)
Performance fees
$
—
$
7
NM
$
2
NM
General and administrative expense related
to performance fees
—
1
NM
1
NM
Net performance fees
$
—
$
6
NM
$
1
NM
(1) Prior period amounts have been
reclassified from Institutional to conform to current year
presentation.
(2) Includes revenue from separate
accounts that qualify as investment contracts under insurance
accounting standards.
(3) Calculated as net adjusted operating
earnings as a percentage of net adjusted operating revenues.
(4) 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 2024
3 Qtr 2023
% Better/
(Worse)
2 Qtr 2024
% Better/
(Worse)
Managed Assets Rollforward
Global Retail Funds
Beginning assets
$
347,460
$
327,420
6
%
$
349,567
(1
)%
Inflows
13,129
11,223
17
%
12,536
5
%
Outflows
(15,724
)
(15,166
)
(4
)%
(18,658
)
16
%
Net VP/VIT fund flows
(1,741
)
(1,216
)
(43
)%
(1,607
)
(8
)%
Net new flows
(4,336
)
(5,159
)
16
%
(7,729
)
44
%
Reinvested dividends
1,579
1,320
20
%
1,758
(10
)%
Net flows
(2,757
)
(3,839
)
28
%
(5,971
)
54
%
Distributions
(1,770
)
(1,514
)
(17
)%
(2,099
)
16
%
Market appreciation (depreciation) and
other
15,521
(8,478
)
NM
5,889
NM
Foreign currency translation (1)
3,965
(3,419
)
NM
74
NM
Total ending assets
362,419
310,170
17
%
347,460
4
%
% of total retail assets sub-advised
16.2
%
16.0
%
16.0
%
Global Institutional
Beginning assets
294,420
289,178
2
%
302,510
(3
)%
Inflows (2)
8,168
8,404
(3
)%
10,273
(20
)%
Outflows (2)
(8,989
)
(8,809
)
(2
)%
(16,360
)
45
%
Net flows
(821
)
(405
)
NM
(6,087
)
87
%
Market appreciation (depreciation) and
other (3)
7,840
(4,607
)
NM
(2,117
)
NM
Foreign currency translation (1)
8,252
(7,165
)
NM
114
NM
Total ending assets
309,691
277,001
12
%
294,420
5
%
Total managed assets
$
672,110
$
587,171
14
%
$
641,880
5
%
Total AUM net flows
$
(3,578
)
$
(4,244
)
16
%
$
(12,058
)
70
%
Legacy insurance partners flows
$
(869
)
$
(950
)
9
%
$
(9,104
)
90
%
Total Assets Under Advisement
(4)
$
33,297
$
26,756
24
%
$
31,980
4
%
Model delivery AUA flows (5)
$
1,212
$
213
NM
$
923
31
%
Total AUM and AUA Flows (5)
(2,366
)
(4,031
)
41
%
(11,135
)
79
%
(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) AUA flows are 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 2024
3 Qtr 2023
% Better/
(Worse)
2 Qtr 2024
% Better/
(Worse)
Total Managed Assets by Type
Equity
$
353,812
$
299,078
18
%
$
340,206
4
%
Fixed income
243,533
214,839
13
%
226,655
7
%
Money market
21,672
22,719
(5
)%
22,759
(5
)%
Alternative
33,303
33,602
(1
)%
33,187
—
%
Hybrid and other
19,790
16,933
17
%
19,073
4
%
Total managed assets by type
$
672,110
$
587,171
14
%
$
641,880
5
%
Average Managed Assets by Type
(1)
Equity
$
347,466
$
313,909
11
%
$
336,469
3
%
Fixed income
235,845
222,745
6
%
228,662
3
%
Money market
22,213
22,583
(2
)%
22,540
(1
)%
Alternative
33,388
34,797
(4
)%
33,014
1
%
Hybrid and other
19,457
17,533
11
%
18,759
4
%
Total average managed assets by
type
$
658,369
$
611,567
8
%
$
639,444
3
%
(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 2024
Retail Fund Rankings in Top 2 Quartiles
or Above Index Benchmark - Asset Weighted
1 year
3 year
5 year
10 year
Equity
40
%
69
%
78
%
86
%
Fixed Income
88
%
71
%
81
%
95
%
Asset Allocation
90
%
57
%
89
%
90
%
4- or 5-star Morningstar rated
funds
Overall
3 year
5 year
10 year
Number of Rated Funds
118
73
87
103
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
Institutional 3 share class), net of fees. Peer groupings of
Threadneedle funds are defined by either IA or Morningstar index
and are based on 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 09/30/24. Columbia funds
are available for purchase by U.S. customers. Out of 89 Columbia
funds rated (based on primary share class), 4 received a 5-star
Overall Rating and 42 received a 4-star Overall Rating. Out of 139
Threadneedle funds rated (based on highest-rated share class), 21
received a 5-star Overall Rating and 51 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.
© 2024 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 2024
3 Qtr 2023
% Better/
(Worse)
2 Qtr 2024
% Better/
(Worse)
Revenues
Management and financial advice fees
$
196
$
186
5
%
$
189
NM
Distribution fees
106
101
5
%
104
NM
Net investment income
281
215
31
%
266
NM
Premiums, policy and contract charges
388
372
4
%
367
NM
Other revenues
2
2
—
%
2
—
%
Total revenues
973
876
11
%
928
NM
Banking and deposit interest expense
—
—
—
%
—
—
%
Adjusted operating total net
revenues
973
876
11
%
928
NM
Expenses
Distribution expenses
131
117
(12
)%
129
(2
)%
Interest credited to fixed accounts
92
94
2
%
93
1
%
Benefits, claims, losses and settlement
expenses
253
168
(51
)%
226
(12
)%
Remeasurement (gains) losses of future
policy benefit reserves
(25
)
(10
)
NM
(5
)
NM
Change in fair value of market risk
benefits
257
259
1
%
142
(81
)%
Amortization of deferred acquisition
costs
57
57
—
%
57
—
%
Interest and debt expense
11
12
8
%
12
8
%
General and administrative expense
79
79
—
%
78
(1
)%
Adjusted operating expenses
855
776
(10
)%
732
(17
)%
Pretax adjusted operating
earnings
$
118
$
100
18
%
$
196
NM
NM Not Meaningful - variance equal to or
greater than 100%
Ameriprise Financial,
Inc.
Retirement & Protection
Solutions Segment Operating Metrics
(in millions, unaudited)
3 Qtr 2024
3 Qtr 2023
% Better/
(Worse)
2 Qtr 2024
% Better/
(Worse)
Variable Annuities Rollforwards
Beginning balance
$
84,534
$
78,549
8
%
$
84,042
1
%
Deposits
1,231
1,087
13
%
1,364
(10
)%
Withdrawals and terminations
(2,190
)
(1,736
)
(26
)%
(2,127
)
(3
)%
Net flows
(959
)
(649
)
(48
)%
(763
)
(26
)%
Investment performance and interest
credited
4,078
(2,816
)
NM
1,255
NM
Total ending balance - contract
accumulation values
$
87,653
$
75,084
17
%
$
84,534
4
%
Variable annuities fixed
sub-accounts
$
3,837
$
4,395
(13
)%
$
3,935
(2
)%
Life Insurance In Force
$
198,198
$
198,527
—
%
$
198,340
—
%
Net Amount at Risk (Life)
$
37,895
$
37,917
—
%
$
38,203
(1
)%
Net Policyholder Reserves
VUL/UL
$
15,984
$
13,814
16
%
$
15,475
3
%
Term and whole life
182
175
4
%
174
5
%
Disability insurance
503
500
1
%
505
—
%
Other insurance
513
542
(5
)%
524
(2
)%
Total net policyholder reserves
$
17,182
$
15,031
14
%
$
16,678
3
%
DAC Ending Balances
Variable Annuities DAC
$
1,684
$
1,713
(2
)%
$
1,692
—
%
Life and Health DAC
$
955
$
963
(1
)%
$
956
—
%
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 2024
3 Qtr 2023
% Better/
(Worse)
2 Qtr 2024
% 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
(4
)
17
NM
(9
)
56
%
Premiums, policy and contract charges
—
—
—
%
—
—
%
Other revenues
1
2
(50
)%
3
(67
)%
Total revenues
(3
)
19
NM
(6
)
50
%
Banking and deposit interest expense
7
6
(17
)%
7
—
%
Adjusted operating total net
revenues
(10
)
13
NM
(13
)
23
%
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
30
27
(11
)%
24
(25
)%
General and administrative expense
105
60
(75
)%
86
(22
)%
Adjusted operating expenses
135
87
(55
)%
110
(23
)%
Pretax adjusted operating earnings
(loss)
$
(145
)
$
(74
)
(96
)%
$
(123
)
(18
)%
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 2024
3 Qtr 2023
% Better/
(Worse)
2 Qtr 2024
% Better/
(Worse)
Long Term Care Adjusted Operating
Income Statements
Revenues
Management and financial advice fees
$
—
$
—
—
%
$
—
—
%
Distribution fees
—
—
—
%
—
—
%
Net investment income
49
46
7
%
48
2
%
Premiums, policy and contract charges
24
25
(4
)%
22
9
%
Other revenues
—
—
—
%
—
—
%
Total revenues
73
71
3
%
70
4
%
Banking and deposit interest expense
1
—
—
%
—
—
%
Adjusted operating total net
revenues
72
71
1
%
70
3
%
Expenses
Distribution expenses
(4
)
(3
)
33
%
(2
)
NM
Interest credited to fixed accounts
—
—
—
%
—
—
%
Benefits, claims, losses and settlement
expenses
56
58
3
%
56
—
%
Remeasurement (gains) losses of future
policy benefit reserves
3
(2
)
NM
(3
)
NM
Change in fair value of market risk
benefits
—
—
—
%
—
—
%
Amortization of deferred acquisition
costs
—
—
—
%
—
—
%
Interest and debt expense
2
1
NM
1
NM
General and administrative expense
6
7
14
%
6
—
%
Adjusted operating expenses
63
61
(3
)%
58
(9
)%
Pretax adjusted operating earnings
(loss)
$
9
$
10
(10
)%
$
12
(25
)%
Long Term Care Policyholder Reserves,
net of reinsurance
$
2,702
$
2,456
10
%
$
2,557
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 2024
3 Qtr 2023
% Better/
(Worse)
2 Qtr 2024
% Better/
(Worse)
Fixed Annuities Adjusted Operating
Income Statements
Revenues
Management and financial advice fees
$
—
$
—
—
%
$
—
—
%
Distribution fees
—
1
NM
—
—
%
Net investment income
8
8
—
%
8
—
%
Premiums, policy and contract charges
—
—
—
%
1
NM
Other revenues
44
50
(12
)%
45
(2
)%
Total revenues
52
59
(12
)%
54
(4
)%
Banking and deposit interest expense
(1
)
—
—
%
—
—
%
Adjusted operating total net
revenues
53
59
(10
)%
54
(2
)%
Expenses
Distribution expenses
1
—
—
%
—
—
%
Interest credited to fixed accounts
55
59
7
%
54
(2
)%
Benefits, claims, losses and settlement
expenses
—
1
NM
1
NM
Remeasurement (gains) losses of future
policy benefit reserves
—
—
—
%
—
—
%
Change in fair value of market risk
benefits
—
—
—
%
—
—
%
Amortization of deferred acquisition
costs
—
4
NM
3
NM
Interest and debt expense
—
—
—
%
1
NM
General and administrative expense
4
3
(33
)%
3
(33
)%
Adjusted operating expenses
60
67
10
%
62
3
%
Pretax adjusted operating earnings
(loss)
$
(7
)
$
(8
)
13
%
$
(8
)
13
%
NM Not Meaningful - variance equal to or
greater than 100%
Ameriprise Financial,
Inc.
Eliminations (1) Adjusted
Operating Results
(in millions, unaudited)
3 Qtr 2024
3 Qtr 2023
% Better/
(Worse)
2 Qtr 2024
% Better/
(Worse)
Revenues
Management and financial advice fees
$
(40
)
$
(38
)
(5
)%
$
(41
)
2
%
Distribution fees
(305
)
(283
)
(8
)%
(303
)
(1
)%
Net investment income
(21
)
(14
)
(50
)%
(15
)
(40
)%
Premiums, policy and contract charges
(9
)
(8
)
(13
)%
(8
)
(13
)%
Other revenues
1
—
—
%
—
—
%
Total revenues
(374
)
(343
)
(9
)%
(367
)
(2
)%
Banking and deposit interest expense
(7
)
(6
)
17
%
(7
)
—
%
Adjusted operating total net
revenues
(367
)
(337
)
(9
)%
(360
)
(2
)%
Expenses
Distribution expenses
(327
)
(304
)
8
%
(324
)
1
%
Interest credited to fixed accounts
—
—
—
%
—
—
%
Benefits, claims, losses and settlement
expenses
(5
)
(4
)
25
%
(5
)
—
%
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
(14
)
(9
)
56
%
(9
)
56
%
General and administrative expense
(21
)
(20
)
5
%
(22
)
(5
)%
Adjusted operating expenses
(367
)
(337
)
9
%
(360
)
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.
Ameriprise Financial,
Inc.
Capital Information
(in millions, unaudited)
September 30,
2024
September 30,
2023
June 30, 2024
Long-term Debt Summary
Senior notes
$
3,400
$
3,550
$
3,400
Finance lease liabilities
11
22
15
Other (1)
(17
)
(15
)
(19
)
Total Ameriprise Financial long-term
debt
3,394
3,557
3,396
Non-recourse debt of consolidated
investment entities
2,271
2,222
2,386
Total long-term debt
$
5,665
$
5,779
$
5,782
Total Ameriprise Financial long-term
debt
$
3,394
$
3,557
$
3,396
Finance lease liabilities
(11
)
(22
)
(15
)
Other (1)
17
15
19
Total Ameriprise Financial long-term
debt excluding finance lease liabilities and other
$
3,400
$
3,550
$
3,400
Total equity (2)
$
5,715
$
3,825
$
4,993
Equity of consolidated investment
entities
(1
)
(10
)
(1
)
Total equity excluding CIEs
$
5,714
$
3,815
$
4,992
Total Ameriprise Financial capital
$
9,109
$
7,382
$
8,389
Total Ameriprise Financial capital
excluding finance lease liabilities, other and equity of CIEs
$
9,114
$
7,365
$
8,392
Debt to capital
Total Ameriprise Financial long-term debt
to total Ameriprise Financial capital
37.3
%
48.2
%
40.5
%
Total Ameriprise Financial long-term debt
to total Ameriprise Financial capital excluding finance lease
liabilities, other and equity of CIEs (2)
37.3
%
48.2
%
40.5
%
Available Capital for Capital
Adequacy
$
5,523
$
5,247
$
5,245
(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,
2024
December 31,
2023
Assets
Cash and cash equivalents
$
10,575
$
7,477
Cash of consolidated investment
entities
124
87
Investments
56,703
55,489
Investments of consolidated investment
entities
2,243
2,099
Market risk benefits
1,809
1,427
Separate account assets
81,409
77,457
Receivables
14,768
15,078
Receivables of consolidated investment
entities
18
28
Deferred acquisition costs
2,686
2,713
Restricted and segregated cash and
investments
1,261
1,635
Other assets
14,372
11,700
Other assets of consolidated investment
entities
1
1
Total Assets
$
185,969
$
175,191
Liabilities
Policyholder account balances, future
policy benefits and claims
$
41,332
$
37,545
Market risk benefits
1,579
1,762
Separate account liabilities
81,409
77,457
Customer deposits
36,332
37,321
Short-term borrowings
201
201
Long-term debt
3,394
3,399
Debt of consolidated investment
entities
2,271
2,155
Accounts payable and accrued expenses
2,581
2,603
Other liabilities
11,072
7,974
Other liabilities of consolidated
investment entities
83
45
Total Liabilities
180,254
170,462
Equity
Ameriprise Financial
Common shares ($.01 par)
3
3
Additional paid-in capital
10,050
9,824
Retained earnings
23,791
21,905
Treasury stock
(27,028
)
(25,237
)
Accumulated other comprehensive income,
net of tax
(1,101
)
(1,766
)
Total Equity
5,715
4,729
Total Liabilities and Equity
$
185,969
$
175,191
Supplemental Non-GAAP Information:
Available Capital for Capital
Adequacy
$
5,523
$
5,418
Ameriprise Financial,
Inc.
Reconciliation Table:
Earnings
Quarter Ended September
30,
% Better/
(Worse)
Per Diluted Share
Quarter Ended September 30,
% Better/
(Worse)
(in millions, except per share amounts,
unaudited)
2024
2023
2024
2023
Net income
$
511
$
872
(41
)%
$
5.00
$
8.14
(39
)%
Adjustments:
Net realized investment gains (losses)
(1)
(6
)
(38
)
(0.06
)
(0.35
)
Market impact on non-traditional
long-duration products (1)
(402
)
211
(3.93
)
1.96
Mean reversion-related impacts (1)
1
—
0.01
—
Integration/restructuring charges (1)
—
(12
)
—
(0.11
)
Net income (loss) attributable to
consolidated investment entities
5
—
0.05
—
Tax effect of adjustments (2)
85
(34
)
0.83
(0.32
)
Adjusted operating earnings
$
828
$
745
11
%
$
8.10
$
6.96
16
%
Pretax impact of annual unlocking
(94
)
(99
)
(0.92
)
(0.92
)
Tax effect of annual unlocking (2)
20
21
0.19
0.20
Adjusted operating earnings excluding
unlocking
$
902
$
823
10
%
$
8.83
$
7.68
15
%
Pretax impact of severance expense
(24
)
(7
)
(0.24
)
(0.07
)
Tax effect of severance expense
5
1
0.05
0.01
Adjusted operating earnings excluding
unlocking and severance expense
$
921
$
829
11
%
$
9.02
$
7.74
17
%
Weighted average common shares
outstanding:
Basic
100.4
104.9
Diluted
102.2
107.1
(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,
% Better/
(Worse)
Per Diluted Share
Year-to-date September 30,
% Better/
(Worse)
(in millions, except per share amounts,
unaudited)
2024
2023
2024
2023
Net income
$
2,330
$
2,179
7
%
$
22.53
$
20.08
12
%
Adjustments:
Net realized investment gains (losses)
(1)
(9
)
(32
)
(0.09
)
(0.29
)
Market impact on non-traditional
long-duration products (1)
(322
)
(137
)
(3.11
)
(1.27
)
Mean reversion-related impacts (1)
1
—
0.01
—
Integration/restructuring charges (1)
—
(47
)
—
(0.43
)
Net income (loss) attributable to
consolidated investment entities
3
—
0.03
—
Tax effect of adjustments (2)
69
45
0.66
0.41
Adjusted operating earnings
$
2,588
$
2,350
10
%
$
25.03
$
21.66
16
%
Pretax impact of annual unlocking
(94
)
(99
)
(0.91
)
(0.91
)
Tax effect of annual unlocking (2)
20
21
0.20
0.19
Adjusted operating earnings excluding
unlocking
$
2,662
$
2,428
10
%
$
25.74
$
22.38
15
%
Pretax impact of severance expense
(54
)
(7
)
(0.52
)
(0.06
)
Tax effect of severance expense (2)
11
1
0.11
0.01
Adjusted operating earnings excluding
unlocking and severance expense
$
2,705
$
2,434
11
%
$
26.15
$
22.43
17
%
Weighted average common shares
outstanding:
Basic
101.6
106.4
Diluted
103.4
108.5
(1) Pretax adjusted operating
adjustment.
(2) Calculated using the statutory tax
rate of 21%.
Ameriprise Financial,
Inc.
Reconciliation Table: Pretax
Adjusted Operating Earnings
Quarter Ended September
30,
(in millions, unaudited)
2024
2023
Total net revenues
$
4,397
$
3,925
Adjustments:
Net realized investment gains (losses)
(6
)
(38
)
Market impact on non-traditional
long-duration products
5
3
CIEs revenue
53
45
Adjusted operating total net revenues
$
4,345
$
3,915
Annual unlocking
(5
)
1
Adjusted operating total net revenues
excluding unlocking
$
4,350
$
3,914
Total expenses
$
3,752
$
2,808
Adjustments:
CIEs expenses
47
45
Integration/restructuring charges
—
12
Market impact on non-traditional
long-duration products
407
(208
)
Mean reversion-related impacts
(1
)
—
Adjusted operating expenses
$
3,299
$
2,959
Annual unlocking
89
100
Adjusted operating total net expenses
excluding unlocking
$
3,210
$
2,859
Severance expense
24
7
Adjusted operating total net expenses
excluding unlocking and severance expense
$
3,186
$
2,852
Pretax income
$
645
$
1,117
Pretax adjusted operating earnings
$
1,046
$
956
Pretax adjusted operating earnings
excluding unlocking and severance expense
$
1,164
$
1,062
Pretax income margin
14.7
%
28.5
%
Pretax adjusted operating margin
24.1
%
24.4
%
Pretax adjusted operating margin excluding
unlocking and severance expense
26.8
%
27.1
%
Ameriprise Financial,
Inc.
Reconciliation Table:
Available Capital for Capital Adequacy
(in millions, unaudited)
September 30,
2024
September 30,
2023
June 30, 2024
Ameriprise Financial GAAP
Equity
$
5,715
$
3,825
$
4,993
Less: AOCI
(1,101
)
(2,840
)
(1,993
)
Ameriprise Financial GAAP Equity, excl
AOCI
6,816
6,665
6,986
Less: RiverSource Life Insurance Co. GAAP
Equity, excluding AOCI
1,658
2,084
2,012
Add: RiverSource Life Insurance Co.
statutory total adjusted capital
2,721
2,842
2,598
Less: Goodwill and intangibles
2,626
2,487
2,595
Add: Other adjustments
270
311
268
Available Capital for Capital
Adequacy
$
5,523
$
5,247
$
5,245
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
Effective tax rate
21.8
%
22.1
%
Ameriprise Financial,
Inc.
Reconciliation Table:
Effective Tax Rate
Quarter Ended September 30,
2024
(in millions, unaudited)
GAAP
Adjusted Operating
Pretax income
$
645
$
1,046
Income tax provision
$
134
$
218
Effective tax rate
20.7
%
20.8
%
Ameriprise Financial,
Inc.
Reconciliation Table:
Effective Tax Rate
Year-to-date September 30,
2024
(in millions, unaudited)
GAAP
Adjusted Operating
Pretax income
$
2,915
$
3,241
Income tax provision
$
585
$
653
Effective tax rate
20.0
%
20.1
%
Ameriprise Financial,
Inc.
Reconciliation Table: Advice
& Wealth Management General and Administrative Expense
Quarter Ended September
30,
% Better/
(Worse)
(in millions, unaudited)
2024
2023
AWM general and administrative expense
$
419
$
419
—
%
Less: Regulatory accrual
—
20
AWM general and administrative expense
excluding accrual for regulatory matter
$
419
$
399
(5
)%
Ameriprise Financial,
Inc.
Reconciliation Table: Return
on Equity (ROE) Excluding Accumulated
Other Comprehensive Income
“AOCI”
Twelve Months Ended September
30,
(in millions, unaudited)
2024
2023
Net income
$
2,707
$
2,828
Less: Adjustments (1)
(642
)
(254
)
Adjusted operating earnings
3,349
3,082
Less: Annual unlocking (2)
(74
)
(78
)
Adjusted operating earnings excluding
unlocking
$
3,423
$
3,160
Total Ameriprise Financial, Inc.
shareholders’ equity
$
4,828
$
3,894
Less: Accumulated other comprehensive
income, net of tax
(1,926
)
(2,477
)
Total Ameriprise Financial, Inc.
shareholders’ equity excluding AOCI
6,754
6,371
Less: Equity impacts attributable to the
consolidated investment entities
(3
)
(3
)
Adjusted operating equity
$
6,757
$
6,374
Return on equity excluding AOCI
40.1
%
44.4
%
Adjusted operating return on equity
excluding AOCI (3)
49.6
%
48.4
%
Adjusted operating return on equity
excluding AOCI and unlocking (3)
50.7
%
49.6
%
(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/20241023254099/en/
Investor Relations: Alicia A. Charity Ameriprise Financial (612)
671-2080 alicia.a.charity@ampf.com Stephanie M. Rabe Ameriprise
Financial (612) 671-4085 stephanie.m.rabe@ampf.com Media Relations:
Paul W. Johnson Ameriprise Financial (612) 671-0625
paul.w.johnson@ampf.com
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