8-K
Ameriprise Financial Inc (AMP)
| UNITED STATES | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| SECURITIES AND EXCHANGE COMMISSION | |||||||||||
| WASHINGTON, D.C. 20549 | |||||||||||
| FORM | 8-K | ||||||||||
| CURRENT REPORT | |||||||||||
| Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 | Date of Report (Date of earliest event reported): | April 22, 2024 | |||||||||
| --- | --- | AMERIPRISE FINANCIAL, INC. | |||||||||
| --- | |||||||||||
| (Exact name of registrant as specified in its charter) | Delaware | 001-32525 | 13-3180631 | ||||||||
| --- | --- | --- | --- | --- | --- | ||||||
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | 1099 Ameriprise Financial Center | Minneapolis | Minnesota | 55474 | |||||
| --- | --- | --- | --- | --- | --- | ||||||
| (Address of principal executive offices) | (Zip Code) | Registrant’s telephone number, including area code | 612 | 671-3131 | |||||||
| --- | --- | --- | Former name or former address, if changed since last report: | Not Applicable | |||||||
| --- | --- | Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | |||||||||
| --- | --- | ||||||||||
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||||
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||||
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||||
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||||
| Securities registered pursuant to Section 12(b) of the Act: | |||||||||||
| --- | --- | --- | --- | --- | --- | ||||||
| Trading Symbol | Name of each exchange on which registered | ||||||||||
| Common Stock (par value .01 per share) | AMP | New York Stock Exchange |
All values are in US Dollars.
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company | ☐ | | --- | --- || If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | | --- | --- |
Item 2.02 Results of Operations and Financial Condition.
Ameriprise Financial, Inc. furnishes herewith, on Exhibit 99.1, a press release issued April 22, 2024, announcing its financial results for the first quarter of 2024.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| Exhibit 99.1 | Press Release dated April 22, 2024 announcing financial results for the first quarter of 2024 |
| Exhibit 104 | Cover page Interactive Data File (embedded within the Inline eXtensible Business Reporting Language) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AMERIPRISE FINANCIAL, INC. | |||
|---|---|---|---|
| (Registrant) | |||
| Date: | April 22, 2024 | By: | /s/ Walter S. Berman |
| Walter S. Berman | |||
| Executive Vice President and | |||
| Chief Financial Officer |
Document
| Ameriprise Financial, Inc.<br>Minneapolis, MN<br>NYSE: AMP<br>April 22, 2024 |
|---|
Ameriprise Financial Reports First Quarter 2024 Results,
Raises Quarterly Dividend 10 Percent
| Earnings Per Diluted Share | Return on Equity, ex AOCI (1) | ||
|---|---|---|---|
| Q1 2024 | Q1 2024 | ||
| GAAP | $9.46 | GAAP | 48.1% |
| Adjusted Operating | $8.39 | Adjusted Operating | 49.0% |
| •First quarter adjusted operating earnings per diluted share was 8.39, up 16 percent from strong growth across the company. | |||
| --- | |||
| •First quarter GAAP net income per diluted share was 9.46 compared to 3.79 a year ago, primarily from market impacts on the valuation of derivatives and market risk benefits. | |||
| •Adjusted operating net revenues increased 11 percent from organic growth, strong equity markets and higher spread revenues. | |||
| •Assets under management and administration reached 1.4 trillion, up 15 percent from strong client net inflows and market appreciation. | |||
| •General and administrative expenses remained well managed with a continued focus on enhancing operational efficiency and effectiveness. | |||
| •Pretax adjusted operating margin was 26.3 percent and adjusted operating return on equity was 49.0 percent. | |||
| •The company returned 650 million of capital to shareholders in the quarter, demonstrating its balance sheet strength and strong free cash flow generation. | |||
| •During the quarter, Columbia Threadneedle Investments ranked in the top 10 of Barron's annual ranking of the Best Fund Families.(2) |
All values are in US Dollars.
(1) Return on equity excluding AOCI is calculated on a trailing 12-month basis.
(2) See page 8 for related information.
| Ameriprise Financial, Inc. | |||||||
|---|---|---|---|---|---|---|---|
| First Quarter Summary | |||||||
| Quarter Ended March 31, | % Better/<br>(Worse) | ||||||
| (in millions, except per share amounts, unaudited) | 2024 | 2023 | |||||
| GAAP net income | $ | 990 | $ | 417 | NM | ||
| Adjusted operating earnings<br><br>(reconciliation on p. 24) | $ | 878 | $ | 798 | 10% | ||
| GAAP net income per diluted share | $ | 9.46 | $ | 3.79 | NM | ||
| Adjusted operating earnings per diluted share<br><br>(reconciliation on p. 24) | $ | 8.39 | $ | 7.25 | 16% | ||
| GAAP Return on Equity, ex. AOCI | 48.1 | % | 45.2 | % | |||
| Adjusted Operating Return on Equity, ex. AOCI<br><br>(reconciliation on p. 27) | 49.0 | % | 49.5 | % | |||
| GAAP Equity, ex. AOCI | $ | 6,809 | $ | 6,129 | 11% | ||
| Available Capital for Capital Adequacy<br><br>(reconciliation on p. 25) | $ | 5,135 | $ | 5,377 | (5)% | ||
| Weighted average common shares outstanding: | |||||||
| Basic | 102.8 | 107.9 | |||||
| Diluted | 104.6 | 110.0 | |||||
| NM Not Meaningful - variance equal to or greater than 100% |
First quarter 2024 GAAP results included favorable market impacts on the valuation of derivatives and market risk benefits, while the prior year quarter included unfavorable market impacts on the valuation of derivatives and market risk benefits.
| Ameriprise Financial, Inc. | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Advice & Wealth Management Segment Adjusted Operating Results | ||||||||||||||
| Quarter Ended March 31, | % Better/<br>(Worse) | |||||||||||||
| (in millions, unaudited) | 2024 | 2023 | ||||||||||||
| Adjusted operating net revenues | $ | 2,560 | $ | 2,265 | 13% | |||||||||
| Distribution expenses | 1,369 | 1,173 | (17)% | |||||||||||
| Interest and debt expense | 9 | 7 | (29)% | |||||||||||
| General and administrative expenses | 420 | 392 | (7)% | |||||||||||
| Adjusted operating expenses | 1,798 | 1,572 | (14)% | |||||||||||
| Pretax adjusted operating earnings | $ | 762 | $ | 693 | 10% | |||||||||
| Pretax adjusted operating margin | 29.8 | % | 30.6 | % | (80) bps | Quarter Ended March 31, | % Better/<br>(Worse) | |||||||
| --- | --- | --- | --- | --- | --- | |||||||||
| (in billions, unless otherwise noted) | 2024 | 2023 | ||||||||||||
| Total client assets | $ | 954 | $ | 799 | 19% | |||||||||
| Total client net flows | $ | 8.5 | $ | 12.3 | (31)% | |||||||||
| Wrap net flows | $ | 6.5 | $ | 6.2 | 4% | |||||||||
| AWM cash balances | $ | 43.3 | $ | 44.3 | (2)% | |||||||||
| Adjusted operating net revenue per advisor (TTM in thousands) | $ | 942 | $ | 847 | 11% |
Advice & Wealth Management pretax adjusted operating earnings and margin were strong at $762 million and 29.8 percent, respectively.
Adjusted operating net revenues increased 13 percent to $2.6 billion from growth in client assets in both wrap and brokerage accounts, increased transactional activity and a 30 percent increase in bank net investment income.
Adjusted operating expenses increased 14 percent to $1.8 billion compared to a year ago. Distribution expenses increased 17 percent. General and administrative expense was $420 million, up 7 percent. The company expects mid-single digit growth in general and administrative expenses for the full year.
The Wealth Management business continued to deliver profitable organic growth. Clients and advisors remained engaged and focused on positioning portfolios to meet financial planning goals through the market cycle.
•Total client assets grew 19 percent to $954 billion, with wrap assets up 20 percent to $522 billion. In the quarter, total client net flows were $8.5 billion, including wrap flows of $6.5 billion.
•Transactional activity increased 17 percent with strong growth in structured annuities and brokerage, an initial sign that clients are leveraging the company’s planning model to put money back to work.
•Cash balances were fairly stable at $43.3 billion, with cash sweep down only $1.0 billion in the quarter reflecting normal seasonal patterns.
•Total client cash including third-party money market funds and brokered CDs increased $0.9 billion sequentially to $82.4 billion, as clients remain heavily concentrated in yield-oriented products.
•The advisor network and advisor productivity grew from a year ago. Adjusted operating net revenue per advisor on a trailing 12-month basis was $942,000, up 11 percent from enhanced productivity, business growth and market appreciation, and the company added 64 experienced advisors in the quarter.
| Ameriprise Financial, Inc. | |||||||
|---|---|---|---|---|---|---|---|
| Asset Management Segment Adjusted Operating Results | |||||||
| Quarter Ended March 31, | % Better/<br>(Worse) | ||||||
| (in millions, unaudited) | 2024 | 2023 | |||||
| Adjusted operating net revenues | $ | 855 | $ | 799 | 7% | ||
| Distribution expenses | 242 | 230 | (5)% | ||||
| Amortization of deferred acquisition costs | 2 | 1 | NM | ||||
| Interest and debt expense | 2 | 2 | - | ||||
| General and administrative expenses | 403 | 401 | - | ||||
| Adjusted operating expenses | 649 | 634 | (2)% | ||||
| Pretax adjusted operating earnings | $ | 206 | $ | 165 | 25% | ||
| Net pretax adjusted operating margin (1) | 34.9 | % | 31.0 | % | |||
| Quarter Ended March 31, | % Better/<br>(Worse) | ||||||
| (in billions) | 2024 | 2023 | |||||
| Total segment AUM | $ | 652 | $ | 608 | 7% | ||
| Net Flows | |||||||
| Global Retail net flows, ex. legacy insurance partners flows | $ | (2.7) | $ | (4.5) | 39% | ||
| Global Institutional net flows, ex. legacy insurance partners flows | (2.2) | 2.8 | NM | ||||
| Legacy insurance partners flows | (0.8) | (0.8) | 3% | ||||
| Total segment net flows | $ | (5.7) | $ | (2.5) | NM | ||
| Model delivery AUA Flows (2) | $ | 0.2 | $ | (0.2) | NM | ||
| (1) See reconciliation on page 13. | |||||||
| (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 grew 7 percent to $855 million and pretax adjusted operating earnings increased 25 percent to $206 million. Financial results reflected equity market appreciation and disciplined expense management, which more than offset the cumulative impact of net outflows. Net pretax adjusted operating margin was 35 percent, consistent with the company’s targeted range of 31 to 35 percent.
Adjusted operating expenses increased 2 percent, with general and administrative expenses flat from a year ago. Adjusted for foreign exchange and higher performance fee compensation, general and administrative expense was 3 percent lower than last year reflecting the benefits from comprehensive expense management initiatives taken since 2023.
Total assets under management increased 7 percent to $652 billion as equity market appreciation more than offset net outflows. The underlying fee rate remained stable at 46 basis points.
In the quarter, net outflows were $5.7 billion. Flows included $0.8 billion of outflows related to legacy insurance partners.
•Retail net outflows were $2.7 billion, consistent with other active managers. Gross sales improved in North America and EMEA year-over-year and sequentially, while redemptions remained stable.
•Global institutional outflows were $2.2 billion, primarily from a slowdown in the funding of new mandates, as well as redemptions in lower fee mandates and $0.4 billion of outflows from the previously announced proactive portfolio manager actions related to expense management initiatives.
| Ameriprise Financial, Inc. | |||||
|---|---|---|---|---|---|
| Retirement & Protection Solutions Segment Adjusted Operating Results | |||||
| Quarter Ended March 31, | % Better/<br>(Worse) | ||||
| (in millions, unaudited) | 2024 | 2023 | |||
| Adjusted operating net revenues | $ | 912 | $ | 824 | 11% |
| Adjusted operating expenses | 713 | 630 | (13)% | ||
| Pretax adjusted operating earnings | $ | 199 | $ | 194 | 3% |
Retirement & Protection Solutions pretax adjusted operating earnings increased 3 percent to $199 million, reflecting the benefit of higher interest rates and equity markets offset by higher distribution expenses associated with strong structured annuity 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 33 percent to $1.3 billion primarily from strong sales growth in structured variable annuities similar to the industry. Protection sales grew 8 percent to $65 million with the majority of sales in higher margin accumulation VUL products.
| Ameriprise Financial, Inc. | |||||
|---|---|---|---|---|---|
| Corporate & Other Segment Adjusted Operating Results | |||||
| Quarter Ended March 31, | % Better/<br>(Worse) | ||||
| (in millions, unaudited) | 2024 | 2023 | |||
| Corporate & Other, excluding Closed Blocks | $ | (99) | $ | (73) | (36)% |
| Closed Blocks (1) | 10 | (1) | NM | ||
| Pretax adjusted operating earnings / (loss) | $ | (89) | $ | (74) | (20)% |
| Long Term Care | $ | 16 | $ | 8 | NM |
| Fixed Annuities | (6) | (9) | 33% | ||
| Closed Blocks pretax adjusted operating earnings / (loss) | $ | 10 | $ | (1) | NM |
| (1) Long Term Care and Fixed Annuities. | |||||
| NM Not Meaningful - variance equal to or greater than 100% |
Total Corporate & Other Excluding Closed Blocks pretax adjusted operating loss was $99 million, which included $16 million of unfavorable mark-to-market impacts on share-based compensation expense, severance expense and a lease write-down.
Long Term Care pretax adjusted operating earnings increased to $16 million, showing continued improvement in financial performance from higher investment yields.
Fixed Annuities pretax adjusted operating loss was consistent with expectations at $6 million.
Taxes
The operating effective tax rate was 18.6 percent, reflecting favorable share-based accounting tax benefits in the quarter. The operating effective tax rate is expected to be approximately 21 percent for full year 2024.
Contacts
Investor Relations: Media Relations:
Alicia A. Charity Paul W. Johnson
Ameriprise Financial, Inc. Ameriprise Financial, Inc.
(612) 671-2080 (612) 671-0625
alicia.a.charity@ampf.com paul.w.johnson@ampf.com
Stephanie M. Rabe
Ameriprise Financial, Inc.
(612) 671-4085
stephanie.m.rabe@ampf.com
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 estimating Advice & Wealth Management general and administrative expenses for full year 2024;
•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 March 31, 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.
Barron’s Best Fund Families of 2023 - February 29, 2024: Columbia Threadneedle Investments ranked as follows: One-year (8 out of 49); Five-year (11 out of 47); Ten-year (4 out of 46).
| Ameriprise Financial, Inc. | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated GAAP Results | |||||||||||
| (in millions, except per share amounts, unaudited) | 1 Qtr 2024 | 1 Qtr 2023 | % Better/<br>(Worse) | 4 Qtr 2023 | % Better/<br>(Worse) | ||||||
| Revenues | |||||||||||
| Management and financial advice fees | $ | 2,399 | $ | 2,137 | 12% | $ | 2,284 | 5% | |||
| Distribution fees | 506 | 517 | (2)% | 469 | 8% | ||||||
| Net investment income | 901 | 698 | 29% | 888 | 1% | ||||||
| Premiums, policy and contract charges | 390 | 362 | 8% | 404 | (3)% | ||||||
| Other revenues | 129 | 131 | (2)% | 123 | 5% | ||||||
| Total revenues | 4,325 | 3,845 | 12% | 4,168 | 4% | ||||||
| Banking and deposit interest expense | 179 | 103 | (74)% | 176 | (2)% | ||||||
| Total net revenues | 4,146 | 3,742 | 11% | 3,992 | 4% | ||||||
| Expenses | |||||||||||
| Distribution expenses | 1,419 | 1,226 | (16)% | 1,307 | (9)% | ||||||
| Interest credited to fixed accounts | 132 | 164 | 20% | 190 | 31% | ||||||
| Benefits, claims, losses and settlement expenses | 295 | 301 | 2% | 602 | 51% | ||||||
| Remeasurement (gains) losses of future policy benefit reserves | (4) | (5) | (20)% | (3) | 33% | ||||||
| Change in fair value of market risk benefits | (18) | 489 | NM | 240 | NM | ||||||
| Amortization of deferred acquisition costs | 61 | 62 | 2% | 61 | - | ||||||
| Interest and debt expense | 82 | 72 | (14)% | 84 | 2% | ||||||
| General and administrative expense | 960 | 937 | (2)% | 1,017 | 6% | ||||||
| Total expenses | 2,927 | 3,246 | 10% | 3,498 | 16% | ||||||
| Pretax income | 1,219 | 496 | NM | 494 | NM | ||||||
| Income tax provision | 229 | 79 | NM | 117 | (96)% | ||||||
| Net income | $ | 990 | $ | 417 | NM | $ | 377 | NM | |||
| Earnings per share | |||||||||||
| Basic earnings per share | $ | 9.63 | $ | 3.86 | $ | 3.64 | |||||
| Earnings per diluted share | $ | 9.46 | $ | 3.79 | $ | 3.57 | |||||
| Weighted average common shares outstanding | |||||||||||
| Basic | 102.8 | 107.9 | 103.5 | ||||||||
| Diluted | 104.6 | 110.0 | 105.7 | ||||||||
| NM Not Meaningful - variance equal to or greater than 100% | |||||||||||
| Ameriprise Financial, Inc. | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Consolidated Highlights and Capital Summary | |||||||||||
| (in millions unless otherwise noted, unaudited) | 1 Qtr 2024 | 1 Qtr 2023 | % Better/<br>(Worse) | 4 Qtr 2023 | % Better/<br>(Worse) | ||||||
| Assets Under Management and Administration | |||||||||||
| Advice & Wealth Management AUM | $ | 518,080 | $ | 431,438 | 20% | $ | 484,825 | 7% | |||
| Asset Management AUM | 652,077 | 607,679 | 7% | 636,936 | 2% | ||||||
| Corporate AUM | 429 | 243 | 77% | 395 | 9% | ||||||
| Eliminations | (43,181) | (38,091) | (13)% | (41,093) | (5)% | ||||||
| Total Assets Under Management | 1,127,405 | 1,001,269 | 13% | 1,081,063 | 4% | ||||||
| Total Assets Under Administration | 297,457 | 234,339 | 27% | 279,549 | 6% | ||||||
| Total AUM and AUA | $ | 1,424,862 | $ | 1,235,608 | 15% | $ | 1,360,612 | 5% | |||
| S&P 500 | |||||||||||
| Daily average | 4,996 | 3,998 | 25% | 4,472 | 12% | ||||||
| Period end | 5,254 | 4,109 | 28% | 4,770 | 10% | ||||||
| Weighted Equity Index (WEI) (1) | |||||||||||
| Daily average | 3,218 | 2,664 | 21% | 2,892 | 11% | ||||||
| Period end | 3,379 | 2,718 | 24% | 3,102 | 9% | ||||||
| Common shares | |||||||||||
| Beginning balance | 100.2 | 105.3 | (5)% | 101.4 | (1)% | ||||||
| Repurchases | (1.2) | (1.6) | 25% | (1.2) | - | ||||||
| Issuances | 1.2 | 1.1 | 9% | 0.1 | NM | ||||||
| Other | (0.6) | (0.4) | (50)% | (0.1) | NM | ||||||
| Total common shares outstanding | 99.6 | 104.4 | (5)% | 100.2 | (1)% | ||||||
| Restricted stock units | 2.6 | 2.6 | - | 2.7 | (4)% | ||||||
| Total basic common shares outstanding | 102.2 | 107.0 | (4)% | 102.9 | (1)% | ||||||
| Total potentially dilutive shares | 1.8 | 2.0 | (10)% | 2.2 | (18)% | ||||||
| Total diluted shares | 104.0 | 109.0 | (5)% | 105.1 | (1)% | ||||||
| Capital Returned to Shareholders | |||||||||||
| Dividends paid | $ | 143 | $ | 138 | 4% | $ | 142 | 1% | |||
| Common stock share repurchases | 507 | 506 | - | 445 | 14% | ||||||
| Total Capital Returned to Shareholders | $ | 650 | $ | 644 | 1% | $ | 587 | 11% | |||
| (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) | 1 Qtr 2024 | 1 Qtr 2023 | % Better/<br>(Worse) | 4 Qtr 2023 | % Better/<br>(Worse) | ||||||
| Revenues | |||||||||||
| Management and financial advice fees: | |||||||||||
| Advisory fees | $ | 1,303 | $ | 1,109 | 17% | $ | 1,196 | 9% | |||
| Financial planning fees | 112 | 101 | 11% | 119 | (6)% | ||||||
| Transaction and other fees | 94 | 89 | 6% | 93 | 1% | ||||||
| Total management and financial advice fees | 1,509 | 1,299 | 16% | 1,408 | 7% | ||||||
| Distribution fees: | |||||||||||
| Mutual funds | 196 | 175 | 12% | 185 | 6% | ||||||
| Insurance and annuity | 247 | 211 | 17% | 236 | 5% | ||||||
| Off-Balance sheet brokerage cash | 50 | 126 | (60)% | 48 | 4% | ||||||
| Other products | 105 | 81 | 30% | 90 | 17% | ||||||
| Total distribution fees | 598 | 593 | 1% | 559 | 7% | ||||||
| Net investment income | 560 | 409 | 37% | 547 | 2% | ||||||
| Other revenues | 72 | 67 | 7% | 65 | 11% | ||||||
| Total revenues | 2,739 | 2,368 | 16% | 2,579 | 6% | ||||||
| Banking and deposit interest expense | 179 | 103 | (74)% | 176 | (2)% | ||||||
| Adjusted operating total net revenues | 2,560 | 2,265 | 13% | 2,403 | 7% | ||||||
| Expenses | |||||||||||
| Distribution expenses | 1,369 | 1,173 | (17)% | 1,266 | (8)% | ||||||
| Interest and debt expense | 9 | 7 | (29)% | 8 | (13)% | ||||||
| General and administrative expense | 420 | 392 | (7)% | 431 | 3% | ||||||
| Adjusted operating expenses | 1,798 | 1,572 | (14)% | 1,705 | (5)% | ||||||
| Pretax adjusted operating earnings | $ | 762 | $ | 693 | 10% | $ | 698 | 9% | |||
| Pretax adjusted operating margin | 29.8 | % | 30.6 | % | 29.0 | % | |||||
| Ameriprise Financial, Inc. | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |
| Advice & Wealth Management Segment Operating Metrics | |||||||||||
| (in millions unless otherwise noted, unaudited) | 1 Qtr 2023 | % Better/<br>(Worse) | 4 Qtr 2023 | % Better/<br>(Worse) | |||||||
| AWM Total Client Assets | 953,769 | $ | 798,724 | 19% | $ | 900,502 | 6% | ||||
| Total Client Flows (1) | 8,501 | $ | 12,261 | (31)% | $ | 22,710 | (63)% | ||||
| Total Wrap Accounts | |||||||||||
| Beginning assets | 488,200 | $ | 412,096 | 18% | $ | 444,061 | 10% | ||||
| Net flows (1) | 6,240 | 4% | 6,961 | (6)% | |||||||
| Market appreciation (depreciation) and other | 16,338 | 65% | 37,178 | (27)% | |||||||
| Total wrap ending assets | 521,722 | $ | 434,674 | 20% | $ | 488,200 | 7% | ||||
| Advisory wrap account assets ending balance (2) | 516,469 | $ | 430,088 | 20% | $ | 483,315 | 7% | ||||
| Brokerage Cash & Certificates Balances | |||||||||||
| On-balance sheet (Net Investment Income) | |||||||||||
| On-balance sheet - broker dealer | 2,477 | $ | 2,854 | (13)% | $ | 2,388 | 4% | ||||
| On-balance sheet - bank | 20,008 | 7% | 21,498 | (1)% | |||||||
| On-balance sheet - certificate | 11,102 | 19% | 13,471 | (2)% | |||||||
| Total on-balance sheet | 37,017 | $ | 33,964 | 9% | $ | 37,357 | (1)% | ||||
| Off-balance sheet (Distribution Fees) | |||||||||||
| Off-balance sheet - broker dealer (1) | 6,242 | $ | 10,350 | (40)% | $ | 7,103 | (12)% | ||||
| Total brokerage cash & certificates balances | 43,259 | $ | 44,314 | (2)% | $ | 44,460 | (3)% | ||||
| Gross Fee Yield | |||||||||||
| On-balance sheet - broker dealer | % | 4.27 | % | 5.53 | % | ||||||
| On-balance sheet - bank | % | 4.46 | % | 5.07 | % | ||||||
| On-balance sheet - certificates | % | 4.86 | % | 5.51 | % | ||||||
| Off-balance sheet - broker dealer | % | 3.86 | % | 3.49 | % | ||||||
| Financial Advisors | |||||||||||
| Employee advisors | 2,099 | 6% | 2,228 | - | |||||||
| Franchisee advisors | 8,160 | - | 8,139 | - | |||||||
| Total financial advisors | 10,259 | 1% | 10,367 | - | |||||||
| Advisor Retention | |||||||||||
| Employee | % | 92.8 | % | 92.5 | % | ||||||
| Franchisee | % | 93.6 | % | 92.5 | % | ||||||
| (1) Q4 2023 includes the addition of 14.7 billion of total client flows from the company's partnership with Comerica, including 2.0 billion of wrap flows and 2.5 billion of cash sweep into off-balance sheet - broker dealer. | |||||||||||
| (2) 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. |
All values are in US Dollars.
| Ameriprise Financial, Inc. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Asset Management Segment Adjusted Operating Results | ||||||||||||
| (in millions, unaudited) | 1 Qtr 2024 | 1 Qtr 2023 | % Better/<br>(Worse) | 4 Qtr 2023 | % Better/<br>(Worse) | |||||||
| Revenues | ||||||||||||
| Management and financial advice fees: | ||||||||||||
| Asset management fees: | ||||||||||||
| Retail | $ | 530 | $ | 491 | 8% | $ | 479 | 11% | ||||
| Institutional | 159 | 152 | 5% | 203 | (22)% | |||||||
| Transaction and other fees | 50 | 48 | 4% | 49 | 2% | |||||||
| Revenue from other sources (1) | 3 | 3 | - | 3 | - | |||||||
| Total management and financial advice fees | 742 | 694 | 7% | 734 | 1% | |||||||
| Distribution fees: | ||||||||||||
| Mutual funds | 56 | 52 | 8% | 53 | 6% | |||||||
| Insurance and annuity | 39 | 38 | 3% | 38 | 3% | |||||||
| Total distribution fees | 95 | 90 | 6% | 91 | 4% | |||||||
| Net investment income | 11 | 9 | 22% | 15 | (27)% | |||||||
| Other revenues | 7 | 6 | 17% | 5 | 40% | |||||||
| Total revenues | 855 | 799 | 7% | 845 | 1% | |||||||
| Banking and deposit interest expense | — | — | - | — | - | |||||||
| Adjusted operating total net revenues | 855 | 799 | 7% | 845 | 1% | |||||||
| Expenses | ||||||||||||
| Distribution expenses | 242 | 230 | (5)% | 228 | (6)% | |||||||
| Amortization of deferred acquisition costs | 2 | 1 | NM | 2 | - | |||||||
| Interest and debt expense | 2 | 2 | - | 2 | - | |||||||
| General and administrative expense | 403 | 401 | - | 419 | 4% | |||||||
| Adjusted operating expenses | 649 | 634 | (2)% | 651 | - | |||||||
| Pretax adjusted operating earnings | $ | 206 | $ | 165 | 25% | $ | 194 | 6% | ||||
| Net Pretax Adjusted Operating Margin Reconciliation | ||||||||||||
| Adjusted operating total net revenues | $ | 855 | $ | 799 | 7% | $ | 845 | 1% | ||||
| Distribution pass through revenues | (192) | (182) | (5)% | (180) | (7)% | |||||||
| Subadvisory and other pass through revenues | (96) | (95) | (1)% | (100) | 4% | |||||||
| Net adjusted operating revenues | $ | 567 | $ | 522 | 9% | $ | 565 | - | ||||
| Pretax adjusted operating earnings | $ | 206 | $ | 165 | 25% | $ | 194 | 6% | ||||
| Adjusted operating net investment income | (11) | (9) | (22)% | (15) | 27% | |||||||
| Amortization of intangibles | 3 | 6 | (50)% | 4 | (25)% | |||||||
| Net adjusted operating earnings | $ | 198 | $ | 162 | 22% | $ | 183 | 8% | ||||
| Pretax adjusted operating margin | 24.1 | % | 20.7 | % | 23.0 | % | ||||||
| Net pretax adjusted operating margin (2) | 34.9 | % | 31.0 | % | 32.4 | % | ||||||
| Performance fees (3) | ||||||||||||
| Performance fees | $ | 17 | $ | 5 | NM | $ | 44 | (61)% | ||||
| General and administrative expense related to performance fees | 11 | 2 | NM | 23 | 52% | |||||||
| Net performance fees | $ | 6 | $ | 3 | NM | $ | 21 | (71)% | ||||
| (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) | 1 Qtr 2024 | 1 Qtr 2023 | % Better/<br>(Worse) | 4 Qtr 2023 | % Better/<br>(Worse) | |||||||
| Managed Assets Rollforward | ||||||||||||
| Global Retail Funds | ||||||||||||
| Beginning assets | $ | 334,860 | $ | 309,293 | 8% | $ | 310,170 | 8% | ||||
| Inflows | 14,047 | 12,096 | 16% | 13,029 | 8% | |||||||
| Outflows | (16,308) | (16,394) | 1% | (17,324) | 6% | |||||||
| Net VP/VIT fund flows | (1,560) | (1,187) | (31)% | (1,389) | (12)% | |||||||
| Net new flows | (3,821) | (5,485) | 30% | (5,684) | 33% | |||||||
| Reinvested dividends | 1,010 | 842 | 20% | 4,692 | (78)% | |||||||
| Net flows | (2,811) | (4,643) | 39% | (992) | NM | |||||||
| Distributions | (1,206) | (1,008) | (20)% | (5,367) | 78% | |||||||
| Market appreciation (depreciation) and other | 19,407 | 16,074 | 21% | 27,647 | (30)% | |||||||
| Foreign currency translation (1) | (683) | 1,675 | NM | 3,402 | NM | |||||||
| Total ending assets | 349,567 | 321,391 | 9% | 334,860 | 4% | |||||||
| % of total retail assets sub-advised | 15.6 | % | 15.7 | % | 15.6 | % | ||||||
| Global Institutional | ||||||||||||
| Beginning assets | 302,076 | 274,736 | 10% | 277,001 | 9% | |||||||
| Inflows (2) | 9,352 | 12,759 | (27)% | 9,810 | (5)% | |||||||
| Outflows (2) | (12,219) | (10,645) | (15)% | (14,021) | 13% | |||||||
| Net flows | (2,867) | 2,114 | NM | (4,211) | 32% | |||||||
| Market appreciation (depreciation) and other (3) | 4,786 | 6,322 | (24)% | 22,028 | (78)% | |||||||
| Foreign currency translation (1) | (1,485) | 3,116 | NM | 7,258 | NM | |||||||
| Total ending assets | 302,510 | 286,288 | 6% | 302,076 | - | |||||||
| Total managed assets | $ | 652,077 | $ | 607,679 | 7% | $ | 636,936 | 2% | ||||
| Total net flows | $ | (5,678) | $ | (2,529) | NM | $ | (5,203) | (9)% | ||||
| Legacy insurance partners flows | $ | (779) | $ | (799) | 3% | $ | (1,212) | 36% | ||||
| Total Assets Under Advisement (4) | $ | 28,669 | $ | 24,343 | 18% | $ | 26,160 | 10% | ||||
| Model delivery AUA flows (5) | $ | 243 | $ | (244) | NM | $ | 308 | (21)% | ||||
| (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) | 1 Qtr 2024 | 1 Qtr 2023 | % Better/<br>(Worse) | 4 Qtr 2023 | % Better/<br>(Worse) | |||||||
| Total Managed Assets by Type | ||||||||||||
| Equity | $ | 341,406 | $ | 308,968 | 10% | $ | 323,043 | 6% | ||||
| Fixed income | 236,588 | 224,666 | 5% | 238,353 | (1)% | |||||||
| Money market | 22,164 | 22,218 | - | 23,833 | (7)% | |||||||
| Alternative | 33,002 | 34,724 | (5)% | 33,476 | (1)% | |||||||
| Hybrid and other | 18,917 | 17,103 | 11% | 18,231 | 4% | |||||||
| Total managed assets by type | $ | 652,077 | $ | 607,679 | 7% | $ | 636,936 | 2% | ||||
| Average Managed Assets by Type (1) | ||||||||||||
| Equity | $ | 330,281 | $ | 308,576 | 7% | $ | 304,353 | 9% | ||||
| Fixed income | 235,529 | 217,792 | 8% | 222,304 | 6% | |||||||
| Money market | 22,607 | 22,083 | 2% | 22,753 | (1)% | |||||||
| Alternative | 33,237 | 34,668 | (4)% | 33,503 | (1)% | |||||||
| Hybrid and other | 18,476 | 16,945 | 9% | 17,329 | 7% | |||||||
| Total average managed assets by type | $ | 640,130 | $ | 600,064 | 7% | $ | 600,242 | 7% | ||||
| (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 | ||||||||||||
| 1 Qtr 2024 | ||||||||||||
| Retail Fund Rankings in Top 2 Quartiles or Above Index Benchmark - Asset Weighted | 1 year | 3 year | 5 year | 10 year | ||||||||
| Equity | 61% | 66% | 80% | 89% | ||||||||
| Fixed Income | 74% | 53% | 75% | 85% | ||||||||
| Asset Allocation | 87% | 59% | 82% | 90% | ||||||||
| 4- or 5-star Morningstar rated funds | Overall | 3 year | 5 year | 10 year | ||||||||
| Number of Rated Funds | 117 | 71 | 93 | 104 | ||||||||
| 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 03/31/24. Columbia funds are available for purchase by U.S. customers. Out of 89 Columbia funds rated (based on primary share class), 3 received a 5-star Overall Rating and 38 received a 4-star Overall Rating. Out of 145 Threadneedle funds rated (based on highest-rated share class), 22 received a 5-star Overall Rating and 54 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. <br><br>© 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) | 1 Qtr 2024 | 1 Qtr 2023 | % Better/<br>(Worse) | 4 Qtr 2023 | % Better/<br>(Worse) | |||||||
| Revenues | ||||||||||||
| Management and financial advice fees | $ | 189 | $ | 183 | 3% | $ | 181 | 4% | ||||
| Distribution fees | 104 | 97 | 7% | 100 | 4% | |||||||
| Net investment income | 243 | 195 | 25% | 245 | (1)% | |||||||
| Premiums, policy and contract charges | 374 | 346 | 8% | 389 | (4)% | |||||||
| Other revenues | 2 | 3 | (33)% | 3 | (33)% | |||||||
| Total revenues | 912 | 824 | 11% | 918 | (1)% | |||||||
| Banking and deposit interest expense | — | — | - | — | - | |||||||
| Adjusted operating total net revenues | 912 | 824 | 11% | 918 | (1)% | |||||||
| Expenses | ||||||||||||
| Distribution expenses | 124 | 110 | (13)% | 117 | (6)% | |||||||
| Interest credited to fixed accounts | 91 | 88 | (3)% | 93 | 2% | |||||||
| Benefits, claims, losses and settlement expenses | 224 | 162 | (38)% | 226 | 1% | |||||||
| Remeasurement (gains) losses of future policy benefit reserves | (2) | (3) | (33)% | (2) | - | |||||||
| Change in fair value of market risk benefits | 129 | 115 | (12)% | 131 | 2% | |||||||
| Amortization of deferred acquisition costs | 57 | 58 | 2% | 57 | - | |||||||
| Interest and debt expense | 12 | 13 | 8% | 14 | 14% | |||||||
| General and administrative expense | 78 | 87 | 10% | 80 | 3% | |||||||
| Adjusted operating expenses | 713 | 630 | (13)% | 716 | - | |||||||
| Pretax adjusted operating earnings | $ | 199 | $ | 194 | 3% | $ | 202 | (1)% | ||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| Retirement & Protection Solutions Segment Operating Metrics | ||||||||||||
| (in millions, unaudited) | 1 Qtr 2024 | 1 Qtr 2023 | % Better/<br>(Worse) | 4 Qtr 2023 | % Better/<br>(Worse) | |||||||
| Variable Annuities Rollforwards | ||||||||||||
| Beginning balance | $ | 80,754 | $ | 74,385 | 9% | $ | 75,084 | 8% | ||||
| Deposit | 1,158 | 874 | 32% | 1,073 | 8% | |||||||
| Withdrawals and terminations | (2,067) | (1,623) | (27)% | (1,922) | (8)% | |||||||
| Net flows | (909) | (749) | (21)% | (849) | (7)% | |||||||
| Investment performance and interest credited | 4,197 | 3,173 | 32% | 6,519 | (36)% | |||||||
| Total ending balance - contract accumulation values | $ | 84,042 | $ | 76,809 | 9% | $ | 80,754 | 4% | ||||
| Variable annuities fixed sub-accounts | $ | 4,067 | $ | 4,644 | (12)% | $ | 4,215 | (4)% | ||||
| Life Insurance In Force | $ | 198,550 | $ | 198,707 | - | $ | 198,775 | - | ||||
| Net Amount at Risk (Life) | $ | 38,240 | $ | 38,120 | - | $ | 38,406 | - | ||||
| Net Policyholder Reserves | ||||||||||||
| VUL/UL | $ | 15,305 | $ | 13,783 | 11% | $ | 14,715 | 4% | ||||
| Term and whole life | 180 | 195 | (8)% | 187 | (4)% | |||||||
| Disability insurance | 521 | 552 | (6)% | 536 | (3)% | |||||||
| Other insurance | 528 | 552 | (4)% | 537 | (2)% | |||||||
| Total net policyholder reserves | $ | 16,534 | $ | 15,082 | 10% | $ | 15,975 | 3% | ||||
| DAC Ending Balances | ||||||||||||
| Variable Annuities DAC | $ | 1,697 | $ | 1,733 | (2)% | $ | 1,704 | - | ||||
| Life and Health DAC | $ | 957 | $ | 967 | (1)% | $ | 961 | - | ||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| Corporate Segment Adjusted Operating Results and Metrics | ||||||||||||
| (in millions, unaudited) | 1 Qtr 2024 | 1 Qtr 2023 | % Better/<br>(Worse) | 4 Qtr 2023 | % Better/<br>(Worse) | |||||||
| Corporate Excluding Long Term Care and Fixed Annuities Adjusted Operating Income Statements | ||||||||||||
| Revenues | ||||||||||||
| Management and financial advice fees | $ | — | $ | — | - | $ | — | - | ||||
| Distribution fees | — | — | - | — | - | |||||||
| Net investment income | — | (1) | NM | (8) | NM | |||||||
| Premiums, policy and contract charges | — | — | - | — | - | |||||||
| Other revenues | 1 | 2 | (50)% | 1 | - | |||||||
| Total revenues | 1 | 1 | - | (7) | NM | |||||||
| Banking and deposit interest expense | 8 | 4 | NM | 7 | (14)% | |||||||
| Adjusted operating total net revenues | (7) | (3) | NM | (14) | 50% | |||||||
| 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 | 23 | 16 | (44)% | 20 | (15)% | |||||||
| General and administrative expense | 69 | 54 | (28)% | 83 | 17% | |||||||
| Adjusted operating expenses | 92 | 70 | (31)% | 103 | 11% | |||||||
| Pretax adjusted operating earnings (loss) | $ | (99) | $ | (73) | (36)% | $ | (117) | 15% | ||||
| NM Not Meaningful - variance equal to or greater than 100% | ||||||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| Corporate Segment Adjusted Operating Results and Metrics | ||||||||||||
| (in millions, unaudited) | 1 Qtr 2024 | 1 Qtr 2023 | % Better/<br>(Worse) | 4 Qtr 2023 | % Better/<br>(Worse) | |||||||
| Long Term Care Adjusted Operating Income Statements | ||||||||||||
| Revenues | ||||||||||||
| Management and financial advice fees | $ | — | $ | — | - | $ | — | - | ||||
| Distribution fees | — | — | - | — | - | |||||||
| Net investment income | 49 | 44 | 11% | 48 | 2% | |||||||
| Premiums, policy and contract charges | 23 | 23 | - | 24 | (4)% | |||||||
| Other revenues | — | — | - | — | - | |||||||
| Total revenues | 72 | 67 | 7% | 72 | - | |||||||
| Banking and deposit interest expense | — | — | - | — | - | |||||||
| Adjusted operating total net revenues | 72 | 67 | 7% | 72 | - | |||||||
| Expenses | ||||||||||||
| Distribution expenses | (3) | (3) | - | (4) | (25)% | |||||||
| Interest credited to fixed accounts | — | — | - | — | - | |||||||
| Benefits, claims, losses and settlement expenses | 53 | 56 | 5% | 60 | 12% | |||||||
| Remeasurement (gains) losses of future policy benefit reserves | (2) | (2) | - | (1) | NM | |||||||
| Change in fair value of market risk benefits | — | — | - | — | - | |||||||
| Amortization of deferred acquisition costs | — | — | - | — | - | |||||||
| Interest and debt expense | 2 | 2 | - | 2 | - | |||||||
| General and administrative expense | 6 | 6 | - | 5 | (20)% | |||||||
| Adjusted operating expenses | 56 | 59 | 5% | 62 | 10% | |||||||
| Pretax adjusted operating earnings (loss) | $ | 16 | $ | 8 | NM | $ | 10 | 60% | ||||
| Long Term Care Policyholder Reserves, net of reinsurance | $ | 2,615 | $ | 2,659 | (2)% | $ | 2,677 | (2)% | ||||
| NM Not Meaningful - variance equal to or greater than 100% | ||||||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| Corporate Segment Adjusted Operating Results and Metrics | ||||||||||||
| (in millions, unaudited) | 1 Qtr 2024 | 1 Qtr 2023 | % Better/<br>(Worse) | 4 Qtr 2023 | % Better/<br>(Worse) | |||||||
| Fixed Annuities Adjusted Operating Income Statements | ||||||||||||
| Revenues | ||||||||||||
| Management and financial advice fees | $ | — | $ | — | - | $ | — | - | ||||
| Distribution fees | — | — | - | — | - | |||||||
| Net investment income | 9 | 8 | 13% | 9 | - | |||||||
| Premiums, policy and contract charges | — | 1 | NM | — | - | |||||||
| Other revenues | 47 | 53 | (11)% | 49 | (4)% | |||||||
| Total revenues | 56 | 62 | (10)% | 58 | (3)% | |||||||
| Banking and deposit interest expense | — | — | - | — | - | |||||||
| Adjusted operating total net revenues | 56 | 62 | (10)% | 58 | (3)% | |||||||
| Expenses | ||||||||||||
| Distribution expenses | 1 | 1 | - | 1 | - | |||||||
| Interest credited to fixed accounts | 55 | 61 | 10% | 57 | 4% | |||||||
| Benefits, claims, losses and settlement expenses | — | 2 | NM | 1 | NM | |||||||
| Remeasurement (gains) losses of future policy benefit reserves | — | — | - | — | - | |||||||
| Change in fair value of market risk benefits | — | — | - | — | - | |||||||
| Amortization of deferred acquisition costs | 2 | 3 | 33% | 2 | - | |||||||
| Interest and debt expense | — | — | - | — | - | |||||||
| General and administrative expense | 4 | 4 | - | 4 | - | |||||||
| Adjusted operating expenses | 62 | 71 | 13% | 65 | 5% | |||||||
| Pretax adjusted operating earnings (loss) | $ | (6) | $ | (9) | 33% | $ | (7) | 14% | ||||
| NM Not Meaningful - variance equal to or greater than 100% | ||||||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| Eliminations (1) Adjusted Operating Results | ||||||||||||
| (in millions, unaudited) | 1 Qtr 2024 | 1 Qtr 2023 | % Better/<br>(Worse) | 4 Qtr 2023 | % Better/<br>(Worse) | |||||||
| Revenues | ||||||||||||
| Management and financial advice fees | $ | (39) | $ | (37) | (5)% | $ | (37) | (5)% | ||||
| Distribution fees | (291) | (263) | (11)% | (280) | (4)% | |||||||
| Net investment income | (17) | (12) | (42)% | (16) | (6)% | |||||||
| Premiums, policy and contract charges | (9) | (8) | (13)% | (8) | (13)% | |||||||
| Other revenues | — | — | - | — | - | |||||||
| Total revenues | (356) | (320) | (11)% | (341) | (4)% | |||||||
| Banking and deposit interest expense | (8) | (4) | NM | (7) | 14% | |||||||
| Adjusted operating total net revenues | (348) | (316) | (10)% | (334) | (4)% | |||||||
| Expenses | ||||||||||||
| Distribution expenses | (314) | (285) | 10% | (301) | 4% | |||||||
| Interest credited to fixed accounts | — | — | - | — | - | |||||||
| Benefits, claims, losses and settlement expenses | (5) | (5) | - | (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 | (8) | (8) | - | (7) | 14% | |||||||
| General and administrative expense | (21) | (18) | 17% | (21) | - | |||||||
| Adjusted operating expenses | (348) | (316) | 10% | (334) | 4% | |||||||
| 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) | March 31, <br>2024 | March 31, <br>2023 | December 31,<br>2023 | |||||||||
| Long-term Debt Summary | ||||||||||||
| Senior notes | $ | 3,400 | $ | 3,550 | $ | 3,400 | ||||||
| Finance lease liabilities | 17 | 28 | 20 | |||||||||
| Other (1) | (19) | (18) | (21) | |||||||||
| Total Ameriprise Financial long-term debt | 3,398 | 3,560 | 3,399 | |||||||||
| Non-recourse debt of consolidated investment entities | 2,119 | 2,367 | 2,155 | |||||||||
| Total long-term debt | $ | 5,517 | $ | 5,927 | $ | 5,554 | ||||||
| Total Ameriprise Financial long-term debt | $ | 3,398 | $ | 3,560 | $ | 3,399 | ||||||
| Finance lease liabilities | (17) | (28) | (20) | |||||||||
| Other (1) | 19 | 18 | 21 | |||||||||
| Total Ameriprise Financial long-term debt excluding finance lease liabilities and other | $ | 3,400 | $ | 3,550 | $ | 3,400 | ||||||
| Total equity (2) | $ | 4,879 | $ | 4,144 | $ | 4,729 | ||||||
| Equity of consolidated investment entities | (1) | (8) | (1) | |||||||||
| Total equity excluding CIEs | $ | 4,878 | $ | 4,136 | $ | 4,728 | ||||||
| Total Ameriprise Financial capital | $ | 8,277 | $ | 7,704 | $ | 8,128 | ||||||
| Total Ameriprise Financial capital excluding finance lease liabilities, other and equity of CIEs | $ | 8,278 | $ | 7,686 | $ | 8,128 | ||||||
| Debt to capital | ||||||||||||
| Total Ameriprise Financial long-term debt to total Ameriprise Financial capital | 41.1 | % | 46.2 | % | 41.8 | % | ||||||
| Total Ameriprise Financial long-term debt to total Ameriprise Financial capital excluding finance lease liabilities, other and equity of CIEs (2) | 41.1 | % | 46.2 | % | 41.8 | % | ||||||
| Available Capital for Capital Adequacy | $ | 5,135 | $ | 5,377 | $ | 5,418 | ||||||
| (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) | March 31, <br>2024 | December 31,<br>2023 | ||||||||||
| Assets | ||||||||||||
| Cash and cash equivalents | $ | 7,071 | $ | 7,477 | ||||||||
| Cash of consolidated investment entities | 135 | 87 | ||||||||||
| Investments | 56,249 | 55,489 | ||||||||||
| Investments of consolidated investment entities | 2,028 | 2,099 | ||||||||||
| Market risk benefits | 1,964 | 1,427 | ||||||||||
| Separate account assets | 79,753 | 77,457 | ||||||||||
| Receivables | 14,911 | 15,078 | ||||||||||
| Receivables of consolidated investment entities | 25 | 28 | ||||||||||
| Deferred acquisition costs | 2,701 | 2,713 | ||||||||||
| Restricted and segregated cash and investments | 1,591 | 1,635 | ||||||||||
| Other assets | 13,403 | 11,700 | ||||||||||
| Other assets of consolidated investment entities | — | 1 | ||||||||||
| Total Assets | $ | 179,831 | $ | 175,191 | ||||||||
| Liabilities | ||||||||||||
| Policyholder account balances, future policy benefits and claims | $ | 38,667 | $ | 37,545 | ||||||||
| Market risk benefits | 1,335 | 1,762 | ||||||||||
| Separate account liabilities | 79,753 | 77,457 | ||||||||||
| Customer deposits | 36,982 | 37,321 | ||||||||||
| Short-term borrowings | 201 | 201 | ||||||||||
| Long-term debt | 3,398 | 3,399 | ||||||||||
| Debt of consolidated investment entities | 2,119 | 2,155 | ||||||||||
| Accounts payable and accrued expenses | 2,166 | 2,603 | ||||||||||
| Other liabilities | 10,275 | 7,974 | ||||||||||
| Other liabilities of consolidated investment entities | 56 | 45 | ||||||||||
| Total Liabilities | 174,952 | 170,462 | ||||||||||
| Equity | ||||||||||||
| Ameriprise Financial | ||||||||||||
| Common shares ($.01 par) | 3 | 3 | ||||||||||
| Additional paid-in capital | 9,924 | 9,824 | ||||||||||
| Retained earnings | 22,752 | 21,905 | ||||||||||
| Treasury stock | (25,870) | (25,237) | ||||||||||
| Accumulated other comprehensive income, net of tax | (1,930) | (1,766) | ||||||||||
| Total Equity | 4,879 | 4,729 | ||||||||||
| Total Liabilities and Equity | $ | 179,831 | $ | 175,191 | ||||||||
| Supplemental Non-GAAP Information: | ||||||||||||
| Available Capital for Capital Adequacy | $ | 5,135 | $ | 5,418 | ||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Reconciliation Table: Earnings | ||||||||||||
| Quarter Ended March 31, | % Better/<br>(Worse) | Per Diluted Share <br>Quarter Ended <br>March 31, | % Better/<br>(Worse) | |||||||||
| (in millions, except per share amounts, unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Net income | $ | 990 | $ | 417 | NM | $ | 9.46 | $ | 3.79 | NM | ||
| Adjustments: | ||||||||||||
| Net realized investment gains (losses) (1) | — | 3 | — | 0.03 | ||||||||
| Market impact on non-traditional long-duration products (1) | 140 | (475) | 1.34 | (4.32) | ||||||||
| Integration/restructuring charges (1) | — | (10) | — | (0.09) | ||||||||
| Net income (loss) attributable to consolidated investment entities | 1 | — | 0.01 | — | ||||||||
| Tax effect of adjustments (2) | (29) | 101 | (0.28) | 0.92 | ||||||||
| Adjusted operating earnings | $ | 878 | $ | 798 | 10% | $ | 8.39 | $ | 7.25 | 16% | ||
| Weighted average common shares outstanding: | ||||||||||||
| Basic | 102.8 | 107.9 | ||||||||||
| Diluted | 104.6 | 110.0 | ||||||||||
| (1) Pretax adjusted operating adjustment. | ||||||||||||
| (2) Calculated using the statutory tax rate of 21%. | ||||||||||||
| NM Not Meaningful - variance equal to or greater than 100% | ||||||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||
| Reconciliation Table: Pretax Adjusted Operating Earnings | ||||||||||||
| Quarter Ended March 31, | ||||||||||||
| (in millions, unaudited) | 2024 | 2023 | ||||||||||
| Total net revenues | $ | 4,146 | $ | 3,742 | ||||||||
| Adjustments: | ||||||||||||
| Net realized investment gains (losses) | — | 3 | ||||||||||
| Market impact on non-traditional long-duration products | 2 | — | ||||||||||
| CIEs revenue | 44 | 41 | ||||||||||
| Adjusted operating total net revenues | $ | 4,100 | $ | 3,698 | ||||||||
| Total expenses | $ | 2,927 | $ | 3,246 | ||||||||
| Adjustments: | ||||||||||||
| CIEs expenses | 43 | 41 | ||||||||||
| Integration/restructuring charges | — | 10 | ||||||||||
| Market impact on non-traditional long-duration products | (138) | 475 | ||||||||||
| Adjusted operating expenses | $ | 3,022 | $ | 2,720 | ||||||||
| Pretax income | $ | 1,219 | $ | 496 | ||||||||
| Pretax adjusted operating earnings | $ | 1,078 | $ | 978 | ||||||||
| Pretax income margin | 29.4 | % | 13.3 | % | ||||||||
| Pretax adjusted operating margin | 26.3 | % | 26.4 | % | ||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||
| Reconciliation Table: Available Capital for Capital Adequacy | ||||||||||||
| (in millions, unaudited) | March 31, <br>2024 | March 31, <br>2023 | December 31,<br>2023 | |||||||||
| Ameriprise Financial GAAP Equity | $ | 4,879 | $ | 4,144 | $ | 4,729 | ||||||
| Less: AOCI | (1,930) | (1,985) | (1,766) | |||||||||
| Ameriprise Financial GAAP Equity, excl AOCI | 6,809 | 6,129 | 6,495 | |||||||||
| Less: RiverSource Life Insurance Co. GAAP Equity, excluding AOCI | 2,017 | 1,667 | 1,851 | |||||||||
| Add: RiverSource Life Insurance Co. statutory total adjusted capital | 2,637 | 3,108 | 3,093 | |||||||||
| Less: Goodwill and intangibles | 2,603 | 2,497 | 2,622 | |||||||||
| Add: Other adjustments | 309 | 304 | 303 | |||||||||
| Available Capital for Capital Adequacy | $ | 5,135 | $ | 5,377 | $ | 5,418 | ||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||
| Reconciliation Table: Effective Tax Rate | ||||||||||||
| Quarter Ended<br>March 31, 2023 | ||||||||||||
| (in millions, unaudited) | GAAP | Adjusted Operating | ||||||||||
| Pretax income | $ | 496 | $ | 978 | ||||||||
| Income tax provision | $ | 79 | $ | 180 | ||||||||
| Effective tax rate | 15.9 | % | 18.4 | % | ||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||
| Reconciliation Table: Effective Tax Rate | ||||||||||||
| Quarter Ended<br> March 31, 2024 | ||||||||||||
| (in millions, unaudited) | GAAP | Adjusted Operating | ||||||||||
| Pretax income | $ | 1,219 | $ | 1,078 | ||||||||
| Income tax provision | $ | 229 | $ | 200 | ||||||||
| Effective tax rate | 18.8 | % | 18.6 | % | ||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | |||||||
| Reconciliation Table: Asset Management General and Administrative Expense | ||||||||||||
| Quarter Ended March 31, | % Better/<br><br>(Worse) | |||||||||||
| (in millions, unaudited) | 2024 | 2023 | ||||||||||
| Total G&A Expense | $ | 403 | $ | 401 | - | |||||||
| Less: Impact of performance fee compensation | 11 | 2 | ||||||||||
| Less: Impact of foreign exchange translation | 4 | — | ||||||||||
| Total G&A Expense excluding impact of performance fee compensation and foreign exchange translation | $ | 388 | $ | 399 | 3% | |||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||
| Reconciliation Table: Return on Equity (ROE) Excluding Accumulated<br>Other Comprehensive Income “AOCI” | ||||||||||||
| Twelve Months Ended<br> March 31, | ||||||||||||
| (in millions, unaudited) | 2024 | 2023 | ||||||||||
| Net income | $ | 3,129 | $ | 2,741 | ||||||||
| Less: Adjustments (1) | (62) | (266) | ||||||||||
| Adjusted operating earnings | $ | 3,191 | $ | 3,007 | ||||||||
| Total Ameriprise Financial, Inc. shareholders’ equity | $ | 4,331 | $ | 4,032 | ||||||||
| Less: Accumulated other comprehensive income, net of tax | (2,174) | (2,037) | ||||||||||
| Total Ameriprise Financial, Inc. shareholders’ equity excluding AOCI | 6,505 | 6,069 | ||||||||||
| Less: Equity impacts attributable to the consolidated investment entities | (4) | (1) | ||||||||||
| Adjusted operating equity | $ | 6,509 | $ | 6,070 | ||||||||
| Return on equity excluding AOCI | 48.1 | % | 45.2 | % | ||||||||
| Adjusted operating return on equity excluding AOCI (2) | 49.0 | % | 49.5 | % | ||||||||
| (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) 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%. |
27