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): | January 24, 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 January 24, 2024, announcing its financial results for the fourth quarter of 2023.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| Exhibit 99.1 | Press Release dated January 24, 2024 announcing financial results for the fourth quarter of 2023 |
| 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: | January 24, 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>January 24, 2024 |
|---|
Ameriprise Financial Reports
Fourth Quarter 2023 Results
| Earnings Per Diluted Share | ||
|---|---|---|
| Q4 2023 | Q4 2023 | |
| GAAP | 3.57 | 39.9% |
| Adjusted Operating | 7.20 | 48.5% |
| Adjusted Operating, excluding Regulatory Accrual, Severance and Mark-to-Market Impact on Share-Based Compensation Expense (2) | 7.75 |
All values are in US Dollars.
| •Fourth quarter adjusted operating earnings per diluted share was 7.20. Adjusted operating EPS grew 14 percent to 7.75 adjusted for 0.28 of expense related to a regulatory accrual, 0.14 from severance expense, and 0.13 from mark-to-market impacts on share-based compensation expense resulting from the company’s share price appreciation in the quarter. | Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer |
|---|---|
| •Fourth quarter GAAP net income per diluted share was 3.57 compared to 5.83 a year ago, primarily from market impacts on the valuation of derivatives and market risk benefits. Full year 2023 GAAP net income per diluted share was 23.71 compared to 27.70 in 2022. | |
| •Full year 2023 adjusted operating earnings per diluted share increased 24 percent to 30.46 adjusted for unlocking and the items cited above. | |
| •Adjusted operating net revenues increased 8 percent from organic growth 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 expense remained well managed, up 6 percent. Excluding the items cited above, G&A increased just 2 percent. | |
| •The company made growth investments in attractive areas and continued to execute plans to enhance operational efficiency and reduce expense. | |
| •Pretax adjusted operating margin was 24.8 percent, or 26.4 percent excluding the items cited above. Adjusted operating return on equity was 48.5 percent. | |
| •Strong free cash flow generation and balance sheet strength enabled consistent strong capital return to shareholders. The company returned 587 million of capital to shareholders in the quarter and 2.5 billion for the full year. | |
| •Ameriprise successfully closed on its partnership with Comerica Bank in November. | |
| •Ameriprise was recognized among the best-managed companies of 2023 on The Wall Street Journal Management Top 250 list. |
All values are in US Dollars.
(1) Return on equity excluding AOCI is calculated on a trailing 12-month basis.
(2) See page 2 for additional detail on the items in the quarter.
| Ameriprise Financial, Inc. | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fourth Quarter Summary | ||||||||||||||||
| Quarter Ended December 31, | % Better/<br>(Worse) | Year-to-date<br>December 31, | % Better/<br>(Worse) | |||||||||||||
| (in millions, except per share amounts, unaudited) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| GAAP net income | $ | 377 | $ | 649 | (42)% | $ | 2,556 | $ | 3,149 | (19)% | ||||||
| Adjusted operating earnings | $ | 761 | $ | 732 | 4% | $ | 3,111 | $ | 2,885 | 8% | ||||||
| Adjusted operating earnings excluding unlocking (see reconciliation starting on p. 24) | $ | 761 | $ | 732 | 4% | $ | 3,189 | $ | 2,778 | 15% | ||||||
| GAAP net income per diluted share | $ | 3.57 | $ | 5.83 | (39)% | $ | 23.71 | $ | 27.70 | (14)% | ||||||
| Adjusted operating earnings per diluted share | $ | 7.20 | $ | 6.57 | 10% | $ | 28.86 | $ | 25.37 | 14% | ||||||
| Adjusted operating earnings per diluted share excluding unlocking (see reconciliation starting on p. 24) | $ | 7.20 | $ | 6.57 | 10% | $ | 29.58 | $ | 24.43 | 21% | ||||||
| GAAP Return on Equity, ex. AOCI | 39.9 | % | 53.0 | % | 39.9 | % | 53.0 | % | ||||||||
| Adjusted Operating Return on Equity, ex. AOCI | 48.5 | % | 48.6 | % | 48.5 | % | 48.6 | % | ||||||||
| Adjusted Operating Return on Equity, ex. AOCI and unlocking (see reconciliation on p. 30) | 49.7 | % | 46.8 | % | 49.7 | % | 46.8 | % | ||||||||
| GAAP Equity, ex. AOCI | $ | 6,495 | $ | 6,349 | 2% | $ | 6,495 | $ | 6,349 | 2% | ||||||
| Available Capital for Capital Adequacy<br><br>(see reconciliation on p. 27) | $ | 5,418 | $ | 5,209 | 4% | $ | 5,418 | $ | 5,209 | 4% | ||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 103.5 | 108.9 | 105.7 | 111.3 | ||||||||||||
| Diluted | 105.7 | 111.4 | 107.8 | 113.7 |
Current quarter GAAP results included unfavorable market impacts on the valuation of derivatives and market risk benefits, as well as $12 million of integration costs after-tax, primarily related to the acquisition of BMO EMEA.
In addition, adjusted operating after-tax results in the quarter included a $30 million accrual for an industry-wide regulatory matter relating to electronic communication recordkeeping requirements, $15 million of severance expense, and $14 million of mark-to-market impacts on share-based compensation expense resulting from the company’s share price appreciation in the quarter.
| Ameriprise Financial, Inc. | ||||||
|---|---|---|---|---|---|---|
| Advice & Wealth Management Segment Adjusted Operating Results | ||||||
| % Better/<br>(Worse) | ||||||
| (in millions, unaudited) | 2022 | |||||
| Adjusted operating net revenues | 2,403 | $ | 2,226 | 8% | ||
| Distribution expenses | 1,153 | (10)% | ||||
| Interest and debt expense | 2 | NM | ||||
| General and administrative expenses (1) | 406 | (6)% | ||||
| Adjusted operating expenses | 1,561 | (9)% | ||||
| Pretax adjusted operating earnings | 698 | $ | 665 | 5% | ||
| Pretax adjusted operating margin (1) | % | 29.9 | % | (90) bps | ||
| (1) Excluding the 30 million regulatory accrual in the quarter ended December 31, 2023, margin increased 40 basis points to 30.3 percent and G&A declined 1 percent to 401 million. | ||||||
| NM Not Meaningful - variance equal to or greater than 100% |
All values are in US Dollars.
| Quarter Ended December 31, | % Better/<br>(Worse) | ||||
|---|---|---|---|---|---|
| (in billions, unless otherwise noted) | 2023 | 2022 | |||
| Total client assets | $ | 901 | $ | 758 | 19% |
| Total client net flows | $ | 22.7 | $ | 12.4 | 83% |
| Wrap net flows | $ | 7.0 | $ | 6.2 | 12% |
| AWM cash balances | $ | 44.5 | $ | 47.2 | (6)% |
| Adjusted operating net revenue per advisor (TTM in thousands) | $ | 916 | $ | 827 | 11% |
Advice & Wealth Management pretax adjusted operating earnings were strong at $698 million. Excluding the regulatory accrual, pretax adjusted operating earnings increased 9 percent to $728 million and pretax adjusted operating margin was 30.3 percent.
Adjusted operating net revenues increased 8 percent to $2.4 billion from growth in client assets in both wrap and brokerage accounts, as well as higher interest earnings from cash products. Significant equity market appreciation during the quarter, particularly in December, was not fully reflected in fourth quarter results, as wrap fees are billed on beginning of month balances.
Adjusted operating expenses increased 9 percent to $1.7 billion compared to a year ago. Distribution expenses increased 10 percent. Excluding the regulatory accrual, general and administrative expense was $401 million, down 1 percent.
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. Clients remain heavily concentrated in yield-oriented products and have not begun putting cash back to work given the current environment.
•Total client net flows were $23 billion in the quarter and $53 billion for the full year.
•Cash balances increased 10 percent to $44.5 billion on a sequential basis. Total client cash including third-party money market funds and brokered CDs increased to $81.5 billion.
•Bank and certificate assets grew 28 percent year-over-year.
•Advisor headcount was 10,367, reflecting good advisor retention coupled with the addition of 166 experienced advisors in the quarter.
•Adjusted operating net revenue per advisor on a trailing 12-month basis was $916,000, up 11 percent from enhanced productivity, business growth and market appreciation.
| Ameriprise Financial, Inc. | |||||||
|---|---|---|---|---|---|---|---|
| Asset Management Segment Adjusted Operating Results | |||||||
| Quarter Ended December 31, | % Better/<br>(Worse) | ||||||
| (in millions, unaudited) | 2023 | 2022 | |||||
| Adjusted operating net revenues | $ | 845 | $ | 785 | 8% | ||
| Distribution expenses | 228 | 228 | - | ||||
| Amortization of deferred acquisition costs | 2 | 1 | NM | ||||
| Interest and debt expense | 2 | 2 | - | ||||
| General and administrative expenses | 419 | 408 | (3)% | ||||
| Adjusted operating expenses | 651 | 639 | (2)% | ||||
| Pretax adjusted operating earnings | $ | 194 | $ | 146 | 33% | ||
| Net pretax adjusted operating margin (1) | 32.4 | % | 28.6 | % | |||
| Quarter Ended December 31, | % Better/<br>(Worse) | ||||||
| (in billions) | 2023 | 2022 | |||||
| Total segment AUM | $ | 637 | $ | 584 | 9% | ||
| Net Flows | |||||||
| Global Retail net flows, ex. legacy insurance partners flows | $ | (0.9) | $ | (3.7) | 74% | ||
| Global Institutional net flows, ex. legacy insurance partners flows | (3.1) | 5.0 | NM | ||||
| Legacy insurance partners flows | (1.2) | (1.7) | 27% | ||||
| Total segment net flows | $ | (5.2) | $ | (0.4) | NM | ||
| Model delivery AUA Flows (2) | $ | 0.3 | $ | 1.1 | (73)% | ||
| (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 8 percent to $845 million and pretax adjusted operating earnings increased 33 percent to $194 million. Financial results reflected equity market appreciation, disciplined expense management and performance fees, which more than offset the cumulative impact of net outflows. Net pretax adjusted operating margin was 32 percent, consistent with the company’s targeted range of 31 to 35 percent.
Adjusted operating expenses increased 2 percent. General and administrative expenses declined 4 percent excluding the impact of foreign exchange translation and performance fee compensation. The company has been implementing more comprehensive expense management initiatives in light of the environment and its objective to maintain the operating margin in the targeted range.
Total assets under management increased 9 percent to $637 billion as equity market appreciation and foreign exchange translation more than offset net outflows. The underlying fee rate remained stable at 46 basis points. Long term 3-, 5- and 10-year investment performance continues to be very strong.
In the quarter, net outflows were $5.2 billion. Flows included $1.2 billion of outflows related to legacy insurance partners.
•Retail net outflows were $0.9 billion reflecting gross sales consistent with the industry and year-over-year improvement in redemptions.
•Global institutional outflows were $3.1 billion, primarily from outflows that were expected from proactive portfolio manager actions related to expense management initiatives.
| Ameriprise Financial, Inc. | |||||
|---|---|---|---|---|---|
| Retirement & Protection Solutions Segment Adjusted Operating Results | |||||
| Quarter Ended December 31, | % Better/<br>(Worse) | ||||
| (in millions, unaudited) | 2023 | 2022 | |||
| Adjusted operating net revenues | $ | 918 | $ | 813 | 13% |
| Adjusted operating expenses | 716 | 614 | (17)% | ||
| Pretax adjusted operating earnings | $ | 202 | $ | 199 | 2% |
Retirement & Protection Solutions pretax adjusted operating earnings increased 2 percent to $202 million. 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 19 percent, primarily from strong sales growth in structured variable annuities. Protection sales grew 6 percent to $72 million with the majority of sales in higher margin accumulation VUL products.
| Ameriprise Financial, Inc. | |||||
|---|---|---|---|---|---|
| Corporate & Other Segment Adjusted Operating Results | |||||
| Quarter Ended December 31, | % Better/<br>(Worse) | ||||
| (in millions, unaudited) | 2023 | 2022 | |||
| Corporate & Other, excluding Closed Blocks | $ | (117) | $ | (81) | (44)% |
| Closed Blocks (1) | 3 | (6) | NM | ||
| Pretax adjusted operating earnings / (loss) | $ | (114) | $ | (87) | (31)% |
| Long Term Care | $ | 10 | $ | 1 | NM |
| Fixed Annuities | (7) | (7) | - | ||
| Closed Blocks pretax adjusted operating earnings / (loss) | $ | 3 | $ | (6) | 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 $117 million, which included $19 million of severance expense and $9 million of unfavorable mark-to-market impacts on share-based compensation expense. Excluding these items, the pretax adjusted operating loss was $89 million.
Revenues declined $11 million from the prior year, primarily reflecting adjustments and updates to the allocation of investment income across business segments that reflected increased market volatility and the interest rate environment, which had no impact on Ameriprise’s overall results.
Long Term Care pretax adjusted operating earnings improved to $10 million as a result of higher interest earnings.
Fixed Annuities pretax adjusted operating loss was consistent with expectations at $7 million.
Taxes
The operating effective tax rate was 22.3 percent in the quarter and 21.0 percent for the full year. Excluding the regulatory accrual, the operating effective tax rate was 21.7 percent in the quarter and 20.7 percent for the full year.
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; and
•statements of assumptions underlying such statements.
The words “believe,” “expect,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “forecast,” “on track,” “project,” ”continue,” “able to remain”, “resume,” “deliver,” “develop,” “evolve,” “drive,” ”enable,” “flexibility,” “commitment,” “scenario,” “case,” “appear,” “expands” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from such statements.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Management cautions readers to carefully consider the risks described in the “Risk Factors” discussion under Part 1, Item 1A of and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2022 available at ir.ameriprise.com. Management undertakes no obligation to update publicly or revise any forward-looking statements.
The financial results discussed in this news release represent past performance only, which may not be used to predict or project future results. The financial results and values presented in this news release are based upon asset valuations that represent estimates as of the date of this news release and may be revised in the company’s Form 10-K for the period ended December 31, 2023.
Ameriprise Financial announces financial and other information to investors through the company’s investor relations website at ir.ameriprise.com, as well as SEC filings, press releases, public conference calls and webcasts. Investors and others interested in the company are encouraged to visit the investor relations website from time to time, as information is updated and new information is posted. The website also allows users to sign up for automatic notifications in the event new materials are posted. The information found on the website is not incorporated by reference into this release or in any other report or document the company furnishes or files with the SEC.
The Wall Street Journal Management Top 250 ranking for 2023 is based on a holistic measure of corporate effectiveness developed by the Drucker Institute. More than 700 U.S. companies were evaluated on 34 indicators across five dimensions of corporate performance: Customer Satisfaction, Employee Engagement and Development, Innovation, Social Responsibility and Financial Strength. All data collected was the most current available as of June 30, 2023. Ameriprise did not pay a fee to be evaluated for this rating. Ameriprise did pay a licensing fee to use the Management Top 250 logo. See https://www.drucker.institute/company-rankings/the-wall-street-journal-management-top-250/.
| Ameriprise Financial, Inc. | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated GAAP Results | |||||||||||
| (in millions, except per share amounts, unaudited) | 4 Qtr 2023 | 4 Qtr 2022 | % Better/<br>(Worse) | 3 Qtr 2023 | % Better/<br>(Worse) | ||||||
| Revenues | |||||||||||
| Management and financial advice fees | $ | 2,284 | $ | 2,125 | 7% | $ | 2,287 | - | |||
| Distribution fees | 469 | 528 | (11)% | 463 | 1% | ||||||
| Net investment income | 888 | 577 | 54% | 809 | 10% | ||||||
| Premiums, policy and contract charges | 404 | 363 | 11% | 390 | 4% | ||||||
| Other revenues | 123 | 126 | (2)% | 127 | (3)% | ||||||
| Total revenues | 4,168 | 3,719 | 12% | 4,076 | 2% | ||||||
| Banking and deposit interest expense | 176 | 56 | NM | 151 | (17)% | ||||||
| Total net revenues | 3,992 | 3,663 | 9% | 3,925 | 2% | ||||||
| Expenses | |||||||||||
| Distribution expenses | 1,307 | 1,198 | (9)% | 1,297 | (1)% | ||||||
| Interest credited to fixed accounts | 190 | 222 | 14% | 139 | (37)% | ||||||
| Benefits, claims, losses and settlement expenses | 602 | 325 | (85)% | 120 | NM | ||||||
| Remeasurement (gains) losses of future policy benefit reserves | (3) | 7 | NM | (12) | (75)% | ||||||
| Change in fair value of market risk benefits | 240 | 13 | NM | 168 | (43)% | ||||||
| Amortization of deferred acquisition costs | 61 | 62 | 2% | 62 | 2% | ||||||
| Interest and debt expense | 84 | 62 | (35)% | 84 | - | ||||||
| General and administrative expense | 1,017 | 957 | (6)% | 950 | (7)% | ||||||
| Total expenses | 3,498 | 2,846 | (23)% | 2,808 | (25)% | ||||||
| Pretax income | 494 | 817 | (40)% | 1,117 | (56)% | ||||||
| Income tax provision | 117 | 168 | 30% | 245 | 52% | ||||||
| Net income | $ | 377 | $ | 649 | (42)% | $ | 872 | (57)% | |||
| Earnings per share | |||||||||||
| Basic earnings per share | $ | 3.64 | $ | 5.96 | $ | 8.31 | |||||
| Earnings per diluted share | $ | 3.57 | $ | 5.83 | $ | 8.14 | |||||
| Weighted average common shares outstanding | |||||||||||
| Basic | 103.5 | 108.9 | 104.9 | ||||||||
| Diluted | 105.7 | 111.4 | 107.1 | ||||||||
| NM Not Meaningful - variance equal to or greater than 100% | |||||||||||
| Ameriprise Financial, Inc. | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Consolidated Highlights and Capital Summary | |||||||||||
| (in millions unless otherwise noted, unaudited) | 4 Qtr 2023 | 4 Qtr 2022 | % Better/<br>(Worse) | 3 Qtr 2023 | % Better/<br>(Worse) | ||||||
| Assets Under Management and Administration | |||||||||||
| Advice & Wealth Management AUM | $ | 484,825 | $ | 409,027 | 19% | $ | 440,703 | 10% | |||
| Asset Management AUM | 636,936 | 584,029 | 9% | 587,171 | 8% | ||||||
| Corporate AUM | 395 | 212 | 86% | 349 | 13% | ||||||
| Eliminations | (41,093) | (36,945) | (11)% | (37,795) | (9)% | ||||||
| Total Assets Under Management | 1,081,063 | 956,323 | 13% | 990,428 | 9% | ||||||
| Total Assets Under Administration | 279,549 | 222,011 | 26% | 242,336 | 15% | ||||||
| Total AUM and AUA | $ | 1,360,612 | $ | 1,178,334 | 15% | $ | 1,232,764 | 10% | |||
| S&P 500 | |||||||||||
| Daily average | 4,472 | 3,850 | 16% | 4,456 | - | ||||||
| Period end | 4,770 | 3,840 | 24% | 4,288 | 11% | ||||||
| Weighted Equity Index (WEI) (1) | |||||||||||
| Daily average | 2,892 | 2,536 | 14% | 2,903 | - | ||||||
| Period end | 3,102 | 2,549 | 22% | 2,788 | 11% | ||||||
| Common shares | |||||||||||
| Beginning balance | 101.4 | 106.7 | (5)% | 102.8 | (1)% | ||||||
| Repurchases | (1.2) | (1.6) | 25% | (1.5) | 20% | ||||||
| Issuances | 0.1 | 0.3 | (67)% | 0.3 | (67)% | ||||||
| Other | (0.1) | (0.1) | - | (0.2) | 50% | ||||||
| Total common shares outstanding | 100.2 | 105.3 | (5)% | 101.4 | (1)% | ||||||
| Restricted stock units | 2.7 | 2.8 | (4)% | 2.6 | 4% | ||||||
| Total basic common shares outstanding | 102.9 | 108.1 | (5)% | 104.0 | (1)% | ||||||
| Total potentially dilutive shares | 2.2 | 2.5 | (12)% | 2.2 | - | ||||||
| Total diluted shares | 105.1 | 110.6 | (5)% | 106.2 | (1)% | ||||||
| Capital Returned to Shareholders | |||||||||||
| Dividends paid | $ | 142 | $ | 138 | 3% | $ | 143 | (1)% | |||
| Common stock share repurchases | 445 | 472 | (6)% | 520 | (14)% | ||||||
| Total Capital Returned to Shareholders | $ | 587 | $ | 610 | (4)% | $ | 663 | (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. | |||||||||||
| Ameriprise Financial, Inc. | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Advice & Wealth Management Segment Adjusted Operating Results | |||||||||||
| (in millions, unaudited) | 4 Qtr 2023 | 4 Qtr 2022 | % Better/<br>(Worse) | 3 Qtr 2023 | % Better/<br>(Worse) | ||||||
| Revenues | |||||||||||
| Management and financial advice fees: | |||||||||||
| Advisory fees | $ | 1,196 | $ | 1,084 | 10% | $ | 1,228 | (3)% | |||
| Financial planning fees | 119 | 117 | 2% | 102 | 17% | ||||||
| Transaction and other fees | 93 | 90 | 3% | 94 | (1)% | ||||||
| Total management and financial advice fees | 1,408 | 1,291 | 9% | 1,424 | (1)% | ||||||
| Distribution fees: | |||||||||||
| Mutual funds | 185 | 171 | 8% | 184 | 1% | ||||||
| Insurance and annuity | 236 | 203 | 16% | 226 | 4% | ||||||
| Off-Balance sheet brokerage cash | 48 | 144 | (67)% | 58 | (17)% | ||||||
| Other products | 90 | 81 | 11% | 84 | 7% | ||||||
| Total distribution fees | 559 | 599 | (7)% | 552 | 1% | ||||||
| Net investment income | 547 | 331 | 65% | 517 | 6% | ||||||
| Other revenues | 65 | 61 | 7% | 65 | - | ||||||
| Total revenues | 2,579 | 2,282 | 13% | 2,558 | 1% | ||||||
| Banking and deposit interest expense | 176 | 56 | NM | 151 | (17)% | ||||||
| Adjusted operating total net revenues | 2,403 | 2,226 | 8% | 2,407 | - | ||||||
| Expenses | |||||||||||
| Distribution expenses | 1,266 | 1,153 | (10)% | 1,253 | (1)% | ||||||
| Interest and debt expense | 8 | 2 | NM | 6 | (33)% | ||||||
| General and administrative expense | 431 | 406 | (6)% | 419 | (3)% | ||||||
| Adjusted operating expenses | 1,705 | 1,561 | (9)% | 1,678 | (2)% | ||||||
| Pretax adjusted operating earnings | $ | 698 | $ | 665 | 5% | $ | 729 | (4)% | |||
| Pretax adjusted operating margin | 29.0 | % | 29.9 | % | 30.3 | % | |||||
| NM Not Meaningful - variance equal to or greater than 100% | |||||||||||
| Ameriprise Financial, Inc. | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |
| Advice & Wealth Management Segment Operating Metrics | |||||||||||
| (in millions unless otherwise noted, unaudited) | 4 Qtr 2022 | % Better/<br>(Worse) | 3 Qtr 2023 | % Better/<br>(Worse) | |||||||
| AWM Total Client Assets | 900,502 | $ | 758,156 | 19% | $ | 816,019 | 10% | ||||
| Total Client Flows (1) | 22,710 | $ | 12,381 | 83% | $ | 8,901 | NM | ||||
| Total Wrap Accounts | |||||||||||
| Beginning assets | 444,061 | $ | 385,210 | 15% | $ | 454,689 | (2)% | ||||
| Net flows (1) | 6,212 | 12% | 5,391 | 29% | |||||||
| Market appreciation (depreciation) and other | 20,674 | 80% | (16,019) | NM | |||||||
| Total wrap ending assets | 488,200 | $ | 412,096 | 18% | $ | 444,061 | 10% | ||||
| Advisory wrap account assets ending balance (2) | 483,315 | $ | 407,759 | 19% | $ | 439,341 | 10% | ||||
| Brokerage Cash & Certificates Balances | |||||||||||
| On-balance sheet (Net Investment Income) | |||||||||||
| On-balance sheet - broker dealer | 2,388 | $ | 3,168 | (25)% | $ | 2,554 | (6)% | ||||
| On-balance sheet - bank | 18,305 | 17% | 20,970 | 3% | |||||||
| On-balance sheet - certificate | 9,313 | 45% | 12,612 | 7% | |||||||
| Total on-balance sheet | 37,357 | $ | 30,786 | 21% | $ | 36,136 | 3% | ||||
| Off-balance sheet (Distribution Fees) | |||||||||||
| Off-balance sheet - broker dealer (1) | 7,103 | $ | 16,425 | (57)% | $ | 4,347 | 63% | ||||
| Total brokerage cash & certificates balances | 44,460 | $ | 47,211 | (6)% | $ | 40,483 | 10% | ||||
| Gross Fee Yield | |||||||||||
| On-balance sheet - broker dealer | % | 3.14 | % | 5.30 | % | ||||||
| On-balance sheet - bank | % | 4.08 | % | 4.97 | % | ||||||
| On-balance sheet - certificates | % | 3.98 | % | 5.40 | % | ||||||
| Off-balance sheet - broker dealer | % | 3.31 | % | 4.28 | % | ||||||
| Financial Advisors | |||||||||||
| Employee advisors | 2,096 | 6% | 2,104 | 6% | |||||||
| Franchisee advisors | 8,173 | - | 8,154 | - | |||||||
| Total financial advisors | 10,269 | 1% | 10,258 | 1% | |||||||
| Advisor Retention | |||||||||||
| Employee | % | 92.1 | % | 92.2 | % | ||||||
| Franchisee | % | 94.1 | % | 92.8 | % | ||||||
| (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. | |||||||||||
| NM Not Meaningful - variance equal to or greater than 100% |
All values are in US Dollars.
| Ameriprise Financial, Inc. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Asset Management Segment Adjusted Operating Results | ||||||||||||
| (in millions, unaudited) | 4 Qtr 2023 | 4 Qtr 2022 | % Better/<br>(Worse) | 3 Qtr 2023 | % Better/<br>(Worse) | |||||||
| Revenues | ||||||||||||
| Management and financial advice fees: | ||||||||||||
| Asset management fees: | ||||||||||||
| Retail | $ | 479 | $ | 483 | (1)% | $ | 499 | (4)% | ||||
| Institutional | 203 | 151 | 34% | 165 | 23% | |||||||
| Transaction and other fees | 49 | 50 | (2)% | 50 | (2)% | |||||||
| Revenue from other sources (1) | 3 | 4 | (25)% | 3 | - | |||||||
| Total management and financial advice fees | 734 | 688 | 7% | 717 | 2% | |||||||
| Distribution fees: | ||||||||||||
| Mutual funds | 53 | 52 | 2% | 53 | - | |||||||
| Insurance and annuity | 38 | 38 | - | 39 | (3)% | |||||||
| Total distribution fees | 91 | 90 | 1% | 92 | (1)% | |||||||
| Net investment income | 15 | 3 | NM | 10 | 50% | |||||||
| Other revenues | 5 | 4 | 25% | 7 | (29)% | |||||||
| Total revenues | 845 | 785 | 8% | 826 | 2% | |||||||
| Banking and deposit interest expense | — | — | - | — | - | |||||||
| Adjusted operating total net revenues | 845 | 785 | 8% | 826 | 2% | |||||||
| Expenses | ||||||||||||
| Distribution expenses | 228 | 228 | - | 234 | 3% | |||||||
| Amortization of deferred acquisition costs | 2 | 1 | NM | 1 | NM | |||||||
| Interest and debt expense | 2 | 2 | - | 2 | - | |||||||
| General and administrative expense | 419 | 408 | (3)% | 390 | (7)% | |||||||
| Adjusted operating expenses | 651 | 639 | (2)% | 627 | (4)% | |||||||
| Pretax adjusted operating earnings | $ | 194 | $ | 146 | 33% | $ | 199 | (3)% | ||||
| Net Pretax Adjusted Operating Margin Reconciliation | ||||||||||||
| Adjusted operating total net revenues | $ | 845 | $ | 785 | 8% | $ | 826 | 2% | ||||
| Distribution pass through revenues | (180) | (179) | (1)% | (186) | 3% | |||||||
| Subadvisory and other pass through revenues | (100) | (88) | (14)% | (96) | (4)% | |||||||
| Net adjusted operating revenues | $ | 565 | $ | 518 | 9% | $ | 544 | 4% | ||||
| Pretax adjusted operating earnings | $ | 194 | $ | 146 | 33% | $ | 199 | (3)% | ||||
| Adjusted operating net investment income | (15) | (3) | NM | (10) | (50)% | |||||||
| Amortization of intangibles | 4 | 5 | (20)% | 5 | (20)% | |||||||
| Net adjusted operating earnings | $ | 183 | $ | 148 | 24% | $ | 194 | (6)% | ||||
| Pretax adjusted operating margin | 23.0 | % | 18.6 | % | 24.1 | % | ||||||
| Net pretax adjusted operating margin (2) | 32.4 | % | 28.6 | % | 35.7 | % | ||||||
| Performance fees (3) | ||||||||||||
| Performance fees | $ | 44 | $ | 8 | NM | $ | 7 | NM | ||||
| General and administrative expense related to performance fees | 23 | 3 | NM | 1 | NM | |||||||
| Net performance fees | $ | 21 | $ | 5 | NM | $ | 6 | NM | ||||
| (1) Includes revenue from separate accounts that qualify as investment contracts under insurance accounting standards. | ||||||||||||
| (2) Calculated as net adjusted operating earnings as a percentage of net adjusted operating revenues. | ||||||||||||
| (3) Performance fees do not include CLO incentive fees. | ||||||||||||
| NM Not Meaningful - variance equal to or greater than 100% | ||||||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |
| Asset Management Segment Operating Metrics | ||||||||||||
| (in millions, unaudited) | 4 Qtr 2023 | 4 Qtr 2022 | % Better/<br>(Worse) | 3 Qtr 2023 | % Better/<br>(Worse) | |||||||
| Managed Assets Rollforward | ||||||||||||
| Global Retail Funds | ||||||||||||
| Beginning assets | $ | 310,170 | $ | 296,203 | 5% | $ | 327,420 | (5)% | ||||
| Inflows | 13,029 | 11,836 | 10% | 11,223 | 16% | |||||||
| Outflows | (17,324) | (20,128) | 14% | (15,166) | (14)% | |||||||
| Net VP/VIT fund flows | (1,389) | (1,133) | (23)% | (1,216) | (14)% | |||||||
| Net new flows | (5,684) | (9,425) | 40% | (5,159) | (10)% | |||||||
| Reinvested dividends | 4,692 | 5,676 | (17)% | 1,320 | NM | |||||||
| Net flows | (992) | (3,749) | 74% | (3,839) | 74% | |||||||
| Distributions | (5,367) | (6,357) | 16% | (1,514) | NM | |||||||
| Market appreciation (depreciation) and other | 27,647 | 18,606 | 49% | (8,478) | NM | |||||||
| Foreign currency translation (1) | 3,402 | 4,590 | (26)% | (3,419) | NM | |||||||
| Total ending assets | 334,860 | 309,293 | 8% | 310,170 | 8% | |||||||
| % of total retail assets sub-advised | 15.6 | % | 16.0 | % | 16.0 | % | ||||||
| Global Institutional | ||||||||||||
| Beginning assets | 277,001 | 250,290 | 11% | 289,178 | (4)% | |||||||
| Inflows (2) | 9,810 | 15,374 | (36)% | 8,404 | 17% | |||||||
| Outflows (2) | (14,021) | (12,042) | (16)% | (8,809) | (59)% | |||||||
| Net flows | (4,211) | 3,332 | NM | (405) | NM | |||||||
| Market appreciation (depreciation) and other (3) | 22,028 | 10,952 | NM | (4,607) | NM | |||||||
| Foreign currency translation (1) | 7,258 | 10,162 | (29)% | (7,165) | NM | |||||||
| Total ending assets | 302,076 | 274,736 | 10% | 277,001 | 9% | |||||||
| Total managed assets | $ | 636,936 | $ | 584,029 | 9% | $ | 587,171 | 8% | ||||
| Total net flows | $ | (5,203) | $ | (417) | NM | $ | (4,244) | (23)% | ||||
| Legacy insurance partners flows | $ | (1,212) | $ | (1,663) | 27% | $ | (950) | (28)% | ||||
| Total Assets Under Advisement (4) | $ | 26,160 | $ | 22,163 | 18% | $ | 26,756 | (2)% | ||||
| Model delivery AUA flows (5) | $ | 308 | $ | 1,146 | (73)% | $ | 213 | 45% | ||||
| (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) | 4 Qtr 2023 | 4 Qtr 2022 | % Better/<br>(Worse) | 3 Qtr 2023 | % Better/<br>(Worse) | |||||||
| Total Managed Assets by Type | ||||||||||||
| Equity | $ | 323,043 | $ | 301,223 | 7% | $ | 299,078 | 8% | ||||
| Fixed income | 238,353 | 209,997 | 14% | 214,839 | 11% | |||||||
| Money market | 23,833 | 21,936 | 9% | 22,719 | 5% | |||||||
| Alternative | 33,476 | 33,697 | (1)% | 33,602 | - | |||||||
| Hybrid and other | 18,231 | 17,176 | 6% | 16,933 | 8% | |||||||
| Total managed assets by type | $ | 636,936 | $ | 584,029 | 9% | $ | 587,171 | 8% | ||||
| Average Managed Assets by Type (1) | ||||||||||||
| Equity | $ | 304,353 | $ | 298,195 | 2% | $ | 313,909 | (3)% | ||||
| Fixed income | 222,304 | 204,680 | 9% | 222,745 | - | |||||||
| Money market | 22,753 | 21,876 | 4% | 22,583 | 1% | |||||||
| Alternative | 33,503 | 34,510 | (3)% | 34,797 | (4)% | |||||||
| Hybrid and other | 17,329 | 17,133 | 1% | 17,533 | (1)% | |||||||
| Total average managed assets by type | $ | 600,242 | $ | 576,394 | 4% | $ | 611,567 | (2)% | ||||
| (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 | ||||||||||||
| 4 Qtr 2023 | ||||||||||||
| Retail Fund Rankings in Top 2 Quartiles or Above Index Benchmark - Asset Weighted | 1 year | 3 year | 5 year | 10 year | ||||||||
| Equity | 43% | 69% | 79% | 89% | ||||||||
| Fixed Income | 84% | 68% | 77% | 90% | ||||||||
| Asset Allocation | 90% | 54% | 83% | 90% | ||||||||
| 4- or 5-star Morningstar rated funds | Overall | 3 year | 5 year | 10 year | ||||||||
| Number of Rated Funds | 113 | 73 | 95 | 102 | ||||||||
| 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 12/31/23. Columbia funds are available for purchase by U.S. customers. Out of 89 Columbia funds rated (based on primary share class), 5 received a 5-star Overall Rating and 35 received a 4-star Overall Rating. Out of 149 Threadneedle funds rated (based on highest-rated share class), 21 received a 5-star Overall Rating and 52 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) | 4 Qtr 2023 | 4 Qtr 2022 | % Better/<br>(Worse) | 3 Qtr 2023 | % Better/<br>(Worse) | |||||||
| Revenues | ||||||||||||
| Management and financial advice fees | $ | 181 | $ | 184 | (2)% | $ | 186 | (3)% | ||||
| Distribution fees | 100 | 98 | 2% | 101 | (1)% | |||||||
| Net investment income | 245 | 180 | 36% | 215 | 14% | |||||||
| Premiums, policy and contract charges | 389 | 349 | 11% | 372 | 5% | |||||||
| Other revenues | 3 | 2 | 50% | 2 | 50% | |||||||
| Total revenues | 918 | 813 | 13% | 876 | 5% | |||||||
| Banking and deposit interest expense | — | — | - | — | - | |||||||
| Adjusted operating total net revenues | 918 | 813 | 13% | 876 | 5% | |||||||
| Expenses | ||||||||||||
| Distribution expenses | 117 | 102 | (15)% | 117 | - | |||||||
| Interest credited to fixed accounts | 93 | 97 | 4% | 94 | 1% | |||||||
| Benefits, claims, losses and settlement expenses | 226 | 139 | (63)% | 168 | (35)% | |||||||
| Remeasurement (gains) losses of future policy benefit reserves | (2) | 6 | NM | (10) | (80)% | |||||||
| Change in fair value of market risk benefits | 131 | 123 | (7)% | 259 | 49% | |||||||
| Amortization of deferred acquisition costs | 57 | 57 | - | 57 | - | |||||||
| Interest and debt expense | 14 | 11 | (27)% | 12 | (17)% | |||||||
| General and administrative expense | 80 | 79 | (1)% | 79 | (1)% | |||||||
| Adjusted operating expenses | 716 | 614 | (17)% | 776 | 8% | |||||||
| Pretax adjusted operating earnings | $ | 202 | $ | 199 | 2% | $ | 100 | NM | ||||
| NM Not Meaningful - variance equal to or greater than 100% | ||||||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| Retirement & Protection Solutions Segment Operating Metrics | ||||||||||||
| (in millions, unaudited) | 4 Qtr 2023 | 4 Qtr 2022 | % Better/<br>(Worse) | 3 Qtr 2023 | % Better/<br>(Worse) | |||||||
| Variable Annuities Rollforwards | ||||||||||||
| Beginning balance | $ | 75,084 | $ | 71,262 | 5% | $ | 78,549 | (4)% | ||||
| Deposit | 1,073 | 930 | 15% | 1,087 | (1)% | |||||||
| Withdrawals and terminations | (1,922) | (1,543) | (25)% | (1,736) | (11)% | |||||||
| Net flows | (849) | (613) | (38)% | (649) | (31)% | |||||||
| Investment performance and interest credited | 6,519 | 3,736 | 74% | (2,816) | NM | |||||||
| Total ending balance - contract accumulation values | $ | 80,754 | $ | 74,385 | 9% | $ | 75,084 | 8% | ||||
| Variable annuities fixed sub-accounts | $ | 4,215 | $ | 4,779 | (12)% | $ | 4,395 | (4)% | ||||
| Life Insurance In Force | $ | 198,775 | $ | 198,859 | - | $ | 198,527 | - | ||||
| Net Amount at Risk (Life) | $ | 38,406 | $ | 38,601 | (1)% | $ | 37,917 | 1% | ||||
| Net Policyholder Reserves | ||||||||||||
| VUL/UL | $ | 14,715 | $ | 13,357 | 10% | $ | 13,814 | 7% | ||||
| Term and whole life | 187 | 194 | (4)% | 175 | 7% | |||||||
| Disability insurance | 536 | 543 | (1)% | 500 | 7% | |||||||
| Other insurance | 537 | 557 | (4)% | 542 | (1)% | |||||||
| Total net policyholder reserves | $ | 15,975 | $ | 14,651 | 9% | $ | 15,031 | 6% | ||||
| DAC Ending Balances | ||||||||||||
| Variable Annuities DAC | $ | 1,704 | $ | 1,747 | (2)% | $ | 1,713 | (1)% | ||||
| Life and Health DAC | $ | 961 | $ | 975 | (1)% | $ | 963 | - | ||||
| NM Not Meaningful - variance equal to or greater than 100% | ||||||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| Corporate Segment Adjusted Operating Results and Metrics | ||||||||||||
| (in millions, unaudited) | 4 Qtr 2023 | 4 Qtr 2022 | % Better/<br>(Worse) | 3 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 | (8) | (3) | NM | 17 | NM | |||||||
| Premiums, policy and contract charges | — | — | - | — | - | |||||||
| Other revenues | 1 | 3 | (67)% | 2 | (50)% | |||||||
| Total revenues | (7) | — | - | 19 | NM | |||||||
| Banking and deposit interest expense | 7 | 3 | NM | 6 | (17)% | |||||||
| Adjusted operating total net revenues | (14) | (3) | NM | 13 | NM | |||||||
| 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 | 20 | 19 | (5)% | 27 | 26% | |||||||
| General and administrative expense | 83 | 59 | (41)% | 60 | (38)% | |||||||
| Adjusted operating expenses | 103 | 78 | (32)% | 87 | (18)% | |||||||
| Pretax adjusted operating earnings (loss) | $ | (117) | $ | (81) | (44)% | $ | (74) | (58)% | ||||
| NM Not Meaningful - variance equal to or greater than 100% | ||||||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| Corporate Segment Adjusted Operating Results and Metrics | ||||||||||||
| (in millions, unaudited) | 4 Qtr 2023 | 4 Qtr 2022 | % Better/<br>(Worse) | 3 Qtr 2023 | % Better/<br>(Worse) | |||||||
| Long Term Care Adjusted Operating Income Statements | ||||||||||||
| Revenues | ||||||||||||
| Management and financial advice fees | $ | — | $ | — | - | $ | — | - | ||||
| Distribution fees | — | — | - | — | - | |||||||
| Net investment income | 48 | 42 | 14% | 46 | 4% | |||||||
| Premiums, policy and contract charges | 24 | 26 | (8)% | 25 | (4)% | |||||||
| Other revenues | — | — | - | — | - | |||||||
| Total revenues | 72 | 68 | 6% | 71 | 1% | |||||||
| Banking and deposit interest expense | — | — | - | — | - | |||||||
| Adjusted operating total net revenues | 72 | 68 | 6% | 71 | 1% | |||||||
| Expenses | ||||||||||||
| Distribution expenses | (4) | (4) | - | (3) | 33% | |||||||
| Interest credited to fixed accounts | — | — | - | — | - | |||||||
| Benefits, claims, losses and settlement expenses | 60 | 60 | - | 58 | (3)% | |||||||
| Remeasurement (gains) losses of future policy benefit reserves | (1) | 1 | NM | (2) | (50)% | |||||||
| Change in fair value of market risk benefits | — | — | - | — | - | |||||||
| Amortization of deferred acquisition costs | — | — | - | — | - | |||||||
| Interest and debt expense | 2 | 3 | 33% | 1 | NM | |||||||
| General and administrative expense | 5 | 7 | 29% | 7 | 29% | |||||||
| Adjusted operating expenses | 62 | 67 | 7% | 61 | (2)% | |||||||
| Pretax adjusted operating earnings (loss) | $ | 10 | $ | 1 | NM | $ | 10 | - | ||||
| Long Term Care Policyholder Reserves, net of reinsurance | $ | 2,677 | $ | 2,583 | 4% | $ | 2,456 | 9% | ||||
| NM Not Meaningful - variance equal to or greater than 100% | ||||||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| Corporate Segment Adjusted Operating Results and Metrics | ||||||||||||
| (in millions, unaudited) | 4 Qtr 2023 | 4 Qtr 2022 | % Better/<br>(Worse) | 3 Qtr 2023 | % Better/<br>(Worse) | |||||||
| Fixed Annuities Adjusted Operating Income Statements | ||||||||||||
| Revenues | ||||||||||||
| Management and financial advice fees | $ | — | $ | — | - | $ | — | - | ||||
| Distribution fees | — | — | - | 1 | NM | |||||||
| Net investment income | 9 | 9 | - | 8 | 13% | |||||||
| Premiums, policy and contract charges | — | — | - | — | - | |||||||
| Other revenues | 49 | 55 | (11)% | 50 | (2)% | |||||||
| Total revenues | 58 | 64 | (9)% | 59 | (2)% | |||||||
| Banking and deposit interest expense | — | — | - | — | - | |||||||
| Adjusted operating total net revenues | 58 | 64 | (9)% | 59 | (2)% | |||||||
| Expenses | ||||||||||||
| Distribution expenses | 1 | — | - | — | - | |||||||
| Interest credited to fixed accounts | 57 | 60 | 5% | 59 | 3% | |||||||
| Benefits, claims, losses and settlement expenses | 1 | 3 | 67% | 1 | - | |||||||
| Remeasurement (gains) losses of future policy benefit reserves | — | — | - | — | - | |||||||
| Change in fair value of market risk benefits | — | — | - | — | - | |||||||
| Amortization of deferred acquisition costs | 2 | 4 | 50% | 4 | 50% | |||||||
| Interest and debt expense | — | — | - | — | - | |||||||
| General and administrative expense | 4 | 4 | - | 3 | (33)% | |||||||
| Adjusted operating expenses | 65 | 71 | 8% | 67 | 3% | |||||||
| Pretax adjusted operating earnings (loss) | $ | (7) | $ | (7) | - | $ | (8) | 13% | ||||
| NM Not Meaningful - variance equal to or greater than 100% | ||||||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| Eliminations (1) Adjusted Operating Results | ||||||||||||
| (in millions, unaudited) | 4 Qtr 2023 | 4 Qtr 2022 | % Better/<br>(Worse) | 3 Qtr 2023 | % Better/<br>(Worse) | |||||||
| Revenues | ||||||||||||
| Management and financial advice fees | $ | (37) | $ | (36) | (3)% | $ | (38) | 3% | ||||
| Distribution fees | (280) | (259) | (8)% | (283) | 1% | |||||||
| Net investment income | (16) | (11) | (45)% | (14) | (14)% | |||||||
| Premiums, policy and contract charges | (8) | (8) | - | (8) | - | |||||||
| Other revenues | — | — | - | — | - | |||||||
| Total revenues | (341) | (314) | (9)% | (343) | 1% | |||||||
| Banking and deposit interest expense | (7) | (3) | NM | (6) | 17% | |||||||
| Adjusted operating total net revenues | (334) | (311) | (7)% | (337) | 1% | |||||||
| Expenses | ||||||||||||
| Distribution expenses | (301) | (281) | 7% | (304) | (1)% | |||||||
| Interest credited to fixed accounts | — | — | - | — | - | |||||||
| Benefits, claims, losses and settlement expenses | (5) | — | - | (4) | 25% | |||||||
| 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 | (7) | (8) | (13)% | (9) | (22)% | |||||||
| General and administrative expense | (21) | (22) | (5)% | (20) | 5% | |||||||
| Adjusted operating expenses | (334) | (311) | 7% | (337) | (1)% | |||||||
| 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) | December 31,<br>2023 | December 31,<br>2022 | September 30,<br>2023 | |||||||||
| Long-term Debt Summary | ||||||||||||
| Senior notes | $ | 3,400 | $ | 2,800 | $ | 3,550 | ||||||
| Finance lease liabilities | 20 | 30 | 22 | |||||||||
| Other (1) | (21) | (9) | (15) | |||||||||
| Total Ameriprise Financial long-term debt | 3,399 | 2,821 | 3,557 | |||||||||
| Non-recourse debt of consolidated investment entities | 2,155 | 2,363 | 2,222 | |||||||||
| Total long-term debt | $ | 5,554 | $ | 5,184 | $ | 5,779 | ||||||
| Total Ameriprise Financial long-term debt | $ | 3,399 | $ | 2,821 | $ | 3,557 | ||||||
| Finance lease liabilities | (20) | (30) | (22) | |||||||||
| Other (1) | 21 | 9 | 15 | |||||||||
| Total Ameriprise Financial long-term debt excluding finance lease liabilities and other | $ | 3,400 | $ | 2,800 | $ | 3,550 | ||||||
| Total equity (2) | $ | 4,729 | $ | 3,803 | $ | 3,825 | ||||||
| Equity of consolidated investment entities | (1) | (7) | (10) | |||||||||
| Total equity excluding CIEs | $ | 4,728 | $ | 3,796 | $ | 3,815 | ||||||
| Total Ameriprise Financial capital | $ | 8,128 | $ | 6,624 | $ | 7,382 | ||||||
| Total Ameriprise Financial capital excluding finance lease liabilities, other and equity of CIEs | $ | 8,128 | $ | 6,596 | $ | 7,365 | ||||||
| Debt to capital | ||||||||||||
| Total Ameriprise Financial long-term debt to total Ameriprise Financial capital | 41.8 | % | 42.6 | % | 48.2 | % | ||||||
| Total Ameriprise Financial long-term debt to total Ameriprise Financial capital excluding finance lease liabilities, other and equity of CIEs (2) | 41.8 | % | 42.4 | % | 48.2 | % | ||||||
| Available Capital for Capital Adequacy | $ | 5,418 | $ | 5,209 | $ | 5,247 | ||||||
| (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) | December 31,<br>2023 | December 31,<br>2022 | ||||||||||
| Assets | ||||||||||||
| Cash and cash equivalents | $ | 7,477 | $ | 6,964 | ||||||||
| Cash of consolidated investment entities | 87 | 133 | ||||||||||
| Investments | 55,489 | 44,524 | ||||||||||
| Investments of consolidated investment entities | 2,099 | 2,354 | ||||||||||
| Market risk benefits | 1,427 | 1,015 | ||||||||||
| Separate account assets | 77,457 | 73,962 | ||||||||||
| Receivables | 15,078 | 15,595 | ||||||||||
| Receivables of consolidated investment entities | 28 | 20 | ||||||||||
| Deferred acquisition costs | 2,713 | 2,777 | ||||||||||
| Restricted and segregated cash and investments | 1,635 | 2,229 | ||||||||||
| Other assets | 11,700 | 9,277 | ||||||||||
| Other assets of consolidated investment entities | 1 | 2 | ||||||||||
| Total Assets | $ | 175,191 | $ | 158,852 | ||||||||
| Liabilities | ||||||||||||
| Policyholder account balances, future policy benefits and claims | $ | 37,545 | $ | 34,132 | ||||||||
| Market risk benefits | 1,762 | 2,118 | ||||||||||
| Separate account liabilities | 77,457 | 73,962 | ||||||||||
| Customer deposits | 37,321 | 30,775 | ||||||||||
| Short-term borrowings | 201 | 201 | ||||||||||
| Long-term debt | 3,399 | 2,821 | ||||||||||
| Debt of consolidated investment entities | 2,155 | 2,363 | ||||||||||
| Accounts payable and accrued expenses | 2,603 | 2,242 | ||||||||||
| Other liabilities | 7,974 | 6,316 | ||||||||||
| Other liabilities of consolidated investment entities | 45 | 119 | ||||||||||
| Total Liabilities | 170,462 | 155,049 | ||||||||||
| Equity | ||||||||||||
| Ameriprise Financial | ||||||||||||
| Common shares ($.01 par) | 3 | 3 | ||||||||||
| Additional paid-in capital | 9,824 | 9,517 | ||||||||||
| Retained earnings | 21,905 | 19,918 | ||||||||||
| Treasury stock | (25,237) | (23,089) | ||||||||||
| Accumulated other comprehensive income, net of tax | (1,766) | (2,546) | ||||||||||
| Total Equity | 4,729 | 3,803 | ||||||||||
| Total Liabilities and Equity | $ | 175,191 | $ | 158,852 | ||||||||
| Supplemental Non-GAAP Information: | ||||||||||||
| Available Capital for Capital Adequacy | $ | 5,418 | $ | 5,209 | ||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Reconciliation Table: Earnings | ||||||||||||
| Quarter Ended December 31, | % Better/<br>(Worse) | Per Diluted Share <br>Quarter Ended <br>December 31, | % Better/<br>(Worse) | |||||||||
| (in millions, except per share amounts, unaudited) | 2023 | 2022 | 2023 | 2022 | ||||||||
| Net income | $ | 377 | $ | 649 | (42)% | $ | 3.57 | $ | 5.83 | (39)% | ||
| Adjustments: | ||||||||||||
| Net realized investment gains (losses) (1) | — | (7) | — | (0.06) | ||||||||
| Market impact on non-traditional long-duration products (1) | (471) | (83) | (4.45) | (0.75) | ||||||||
| Mean reversion-related impacts (1) | — | 2 | — | 0.02 | ||||||||
| Integration/restructuring charges (1) | (15) | (15) | (0.14) | (0.13) | ||||||||
| Net income (loss) attributable to consolidated investment entities | — | (2) | — | (0.02) | ||||||||
| Tax effect of adjustments (2) | 102 | 22 | 0.96 | 0.20 | ||||||||
| Adjusted operating earnings | $ | 761 | $ | 732 | 4% | $ | 7.20 | $ | 6.57 | 10% | ||
| Pretax impact of regulatory accrual, severance, and mark-to-market impact on share-based compensation expense (3) | (63) | (23) | (0.59) | (0.21) | ||||||||
| Tax effect of regulatory accrual, severance, and mark-to-market impact on share-based compensation expense (4) | 4 | 1 | 0.04 | 0.01 | ||||||||
| Adjusted operating earnings excluding regulatory accrual, severance, and mark-to-market impact on share-based compensation expense | $ | 820 | $ | 754 | 9% | $ | 7.75 | $ | 6.77 | 14% | ||
| Weighted average common shares outstanding: | ||||||||||||
| Basic | 103.5 | 108.9 | ||||||||||
| Diluted | 105.7 | 111.4 | ||||||||||
| (1) Pretax adjusted operating adjustment. | ||||||||||||
| (2) Calculated using the statutory tax rate of 21%. | ||||||||||||
| (3) 2023 includes a regulatory accrual, severance expense and mark-to-market impact on share-based compensation expense. 2022 includes only mark-to-market impact on share-based compensation expense. | ||||||||||||
| (4) Calculated using a tax rate of 0%, 21%, and 5%, respectively. | ||||||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Reconciliation Table: Earnings | ||||||||||||
| Year-to-date<br>December 31, | % Better/<br>(Worse) | Per Diluted Share<br>Year-to-date<br>December 31, | % Better/<br>(Worse) | |||||||||
| (in millions, except per share amounts, unaudited) | 2023 | 2022 | 2023 | 2022 | ||||||||
| Net income | $ | 2,556 | $ | 3,149 | (19)% | $ | 23.71 | $ | 27.70 | (14)% | ||
| Adjustments: | ||||||||||||
| Net realized investment gains (losses) (1) | (32) | (93) | (0.30) | (0.82) | ||||||||
| Market impact on non-traditional long-duration products (1) | (608) | 483 | (5.63) | 4.25 | ||||||||
| Mean reversion-related impacts (1) | — | (1) | — | (0.01) | ||||||||
| Integration/restructuring charges (1) | (62) | (50) | (0.58) | (0.44) | ||||||||
| Net income (loss) attributable to consolidated investment entities | — | (4) | — | (0.04) | ||||||||
| Tax effect of adjustments (2) | 147 | (71) | 1.36 | (0.61) | ||||||||
| Adjusted operating earnings | $ | 3,111 | $ | 2,885 | 8% | $ | 28.86 | $ | 25.37 | 14% | ||
| Pretax impact of annual unlocking | (99) | 135 | (0.91) | 1.19 | ||||||||
| Tax effect of annual unlocking (2) | 21 | (28) | 0.19 | (0.25) | ||||||||
| Adjusted operating earnings excluding unlocking | $ | 3,189 | $ | 2,778 | 15% | $ | 29.58 | $ | 24.43 | 21% | ||
| Pretax impact of regulatory accrual, severance, and mark-to-market impact on share-based compensation expense (3) | (101) | (10) | (0.94) | (0.09) | ||||||||
| Tax effect of regulatory accrual, severance, and mark-to-market impact on share-based compensation expense (4) | 6 | — | 0.06 | — | ||||||||
| Adjusted operating earnings excluding unlocking and regulatory accrual, severance, and mark-to-market impact on share-based compensation expense | $ | 3,284 | $ | 2,788 | 18% | $ | 30.46 | $ | 24.52 | 24% | ||
| Weighted average common shares outstanding: | ||||||||||||
| Basic | 105.7 | 111.3 | ||||||||||
| Diluted | 107.8 | 113.7 | ||||||||||
| (1) Pretax adjusted operating adjustment. | ||||||||||||
| (2) Calculated using the statutory tax rate of 21%. | ||||||||||||
| (3) 2023 includes a regulatory accrual, severance expense and mark-to-market impact on share-based compensation expense. 2022 includes only mark-to-market impact on share-based compensation expense. | ||||||||||||
| (4) Calculated using a tax rate of 0%, 21%, and 5% respectively. | ||||||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||
| Reconciliation Table: Pretax Adjusted Operating Earnings | ||||||||||||
| Quarter Ended December 31, | ||||||||||||
| (in millions, unaudited) | 2023 | 2022 | ||||||||||
| Total net revenues | $ | 3,992 | $ | 3,663 | ||||||||
| Adjustments: | ||||||||||||
| Net realized investment gains (losses) | — | (7) | ||||||||||
| Market impact on non-traditional long-duration products | (2) | (3) | ||||||||||
| Mean Reversion related impacts | — | — | ||||||||||
| CIEs revenue | 46 | 31 | ||||||||||
| Adjusted operating total net revenues | $ | 3,948 | $ | 3,642 | ||||||||
| Total expenses | $ | 3,498 | $ | 2,846 | ||||||||
| Adjustments: | ||||||||||||
| CIEs expenses | 46 | 34 | ||||||||||
| Integration/restructuring charges | 15 | 15 | ||||||||||
| Market impact on non-traditional long-duration products | 469 | 80 | ||||||||||
| Mean reversion-related impacts | — | (2) | ||||||||||
| Adjusted operating expenses | $ | 2,968 | $ | 2,719 | ||||||||
| Regulatory accrual, severance, and mark-to-market impact on share-based compensation expense (1) | 63 | 23 | ||||||||||
| Adjusted operating expenses excluding regulatory accrual, severance, and mark-to-market impact on share-based compensation expense | $ | 2,905 | $ | 2,696 | ||||||||
| Pretax income | $ | 494 | $ | 817 | ||||||||
| Pretax adjusted operating earnings | $ | 980 | $ | 923 | ||||||||
| Pretax adjusted operating earnings excluding regulatory accrual, severance, and mark-to-market impact on share-based compensation expense | $ | 1,043 | $ | 946 | ||||||||
| Pretax income margin | 12.4 | % | 22.3 | % | ||||||||
| Pretax adjusted operating margin | 24.8 | % | 25.3 | % | ||||||||
| Pretax adjusted operating margin excluding regulatory accrual, severance, and mark-to-market impact on share-based compensation expense | 26.4 | % | 26.0 | % | ||||||||
| (1) 2023 includes a regulatory accrual, severance expense and mark-to-market impact on share-based compensation expense. 2022 includes only mark-to-market impact on share-based compensation expense. | ||||||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||
| Reconciliation Table: Available Capital for Capital Adequacy | ||||||||||||
| (in millions, unaudited) | December 31,<br>2023 | December 31,<br>2022 | September 30,<br>2023 | |||||||||
| Ameriprise Financial GAAP Equity | $ | 4,729 | $ | 3,803 | $ | 3,825 | ||||||
| Less: AOCI | (1,766) | (2,546) | (2,840) | |||||||||
| Ameriprise Financial GAAP Equity, excl AOCI | 6,495 | 6,349 | 6,665 | |||||||||
| Less: RiverSource Life Insurance Co. GAAP Equity, excluding AOCI | 1,851 | 2,057 | 2,084 | |||||||||
| Add: RiverSource Life Insurance Co. statutory total adjusted capital | 3,093 | 3,103 | 2,842 | |||||||||
| Less: Goodwill and intangibles | 2,622 | 2,485 | 2,487 | |||||||||
| Add: Other adjustments | 303 | 299 | 311 | |||||||||
| Available Capital for Capital Adequacy | $ | 5,418 | $ | 5,209 | $ | 5,247 | ||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | |||||||
| Reconciliation Table: General and Administrative Expense | ||||||||||||
| Quarter Ended December 31, | % Better/<br>(Worse) | |||||||||||
| (in millions, unaudited) | 2023 | 2022 | ||||||||||
| Total G&A Expense | $ | 1,001 | $ | 941 | (6)% | |||||||
| Less: Regulatory accrual, severance, and mark-to-market impact on share-based compensation expense (1) | 63 | 23 | ||||||||||
| Total G&A Expense excluding regulatory accrual, severance, and mark-to-market impact on share-based compensation expense | $ | 938 | $ | 918 | (2)% | |||||||
| (1) 2023 includes a regulatory accrual, severance expense and mark-to-market impact on share-based compensation expense. 2022 includes only mark-to-market impact on share-based compensation expense. | ||||||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||
| Reconciliation Table: Effective Tax Rate | ||||||||||||
| Quarter Ended<br>December 31, 2022 | ||||||||||||
| (in millions, unaudited) | GAAP | Adjusted Operating | ||||||||||
| Pretax income | $ | 817 | $ | 923 | ||||||||
| Income tax provision | $ | 168 | $ | 191 | ||||||||
| Effective tax rate | 20.6 | % | 20.7 | % | ||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||
| Reconciliation Table: Effective Tax Rate | ||||||||||||
| Quarter Ended<br> December 31, 2023 | ||||||||||||
| (in millions, unaudited) | GAAP | Adjusted Operating | ||||||||||
| Pretax income | $ | 494 | $ | 980 | ||||||||
| Income tax provision | $ | 117 | $ | 219 | ||||||||
| Pretax income excluding accrual for regulatory matter | $ | 1,010 | ||||||||||
| Income tax provision | $ | 219 | ||||||||||
| Effective tax rate | 23.8 | % | 22.3 | % | ||||||||
| Effective tax rate excluding accrual for regulatory matter | 21.7 | % | ||||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||
| Reconciliation Table: Effective Tax Rate | ||||||||||||
| Year-to-date<br>December 31, 2023 | ||||||||||||
| (in millions, unaudited) | GAAP | Adjusted Operating | ||||||||||
| Pretax income | $ | 3,234 | $ | 3,936 | ||||||||
| Income tax provision | $ | 678 | $ | 825 | ||||||||
| Pretax income excluding accrual for regulatory matter | $ | 3,986 | ||||||||||
| Income tax provision | $ | 825 | ||||||||||
| Effective tax rate | 21.0 | % | 21.0 | % | ||||||||
| Effective tax rate excluding accrual for regulatory matter | 20.7 | % | ||||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | |||||
| Reconciliation Table: Advice & Wealth Management Operating Margin | ||||||||||||
| Quarter Ended December 31, | % Better/<br><br>(Worse) | |||||||||||
| (in millions, unaudited) | 2023 | 2022 | ||||||||||
| Adjusted operating net revenues | $ | 2,403 | $ | 2,226 | 8% | |||||||
| Distribution expenses | 1,266 | 1,153 | ||||||||||
| Interest and debt expense | 8 | 2 | ||||||||||
| General and administrative expenses | 431 | 406 | ||||||||||
| Adjusted operating expenses | 1,705 | 1,561 | (9)% | |||||||||
| Less: Regulatory accrual | 30 | — | ||||||||||
| Adjusted operating expenses excluding accrual for regulatory matter | 1,675 | 1,561 | (7)% | |||||||||
| Pretax adjusted operating earnings | $ | 698 | $ | 665 | 5% | |||||||
| Pretax adjusted operating earnings excluding accrual for regulatory matter | $ | 728 | $ | 665 | 9% | |||||||
| Pretax adjusted operating margin | 29.0 | % | 29.9 | % | (90)bps | |||||||
| Pretax adjusted operating margin excluding accrual for regulatory matter | 30.3 | % | 29.9 | % | 40bps | |||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | |||||||
| Reconciliation Table: Advice & Wealth Management General and Administrative Expense | ||||||||||||
| Quarter Ended December 31, | % Better/<br><br>(Worse) | |||||||||||
| (in millions, unaudited) | 2023 | 2022 | ||||||||||
| Total G&A Expense | $ | 431 | $ | 406 | (6)% | |||||||
| Less: Regulatory accrual | 30 | — | ||||||||||
| Total G&A Expense excluding accrual for regulatory matter | $ | 401 | $ | 406 | 1% | |||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | |||||||
| Reconciliation Table: Asset Management General and Administrative Expense | ||||||||||||
| Quarter Ended December 31, | % Better/<br><br>(Worse) | |||||||||||
| (in millions, unaudited) | 2023 | 2022 | ||||||||||
| Total G&A Expense | $ | 419 | $ | 408 | (3)% | |||||||
| Less: Impact of performance fee compensation | 23 | 3 | ||||||||||
| Less: Impact of foreign exchange translation | 9 | — | ||||||||||
| Total G&A Expense excluding impact of foreign exchange translation and performance fee compensation | $ | 387 | $ | 405 | 4% | |||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | |||||||
| Reconciliation Table: Corporate & Other Excluding Closed Blocks Adjusted Operating Earnings | ||||||||||||
| Quarter Ended December 31, | % Better/<br><br>(Worse) | |||||||||||
| (in millions, unaudited) | 2023 | 2022 | ||||||||||
| Corporate & Other excluding Closed Blocks adjusted operating earnings (loss) | $ | (117) | $ | (81) | (44)% | |||||||
| Less: Regulatory accrual, severance, and mark-to-market impact on share-based compensation expense (1) | (28) | (15) | ||||||||||
| Corporate & Other adjusted operating earnings (loss) excluding regulatory accrual, severance, and mark-to-market impact on share-based compensation expense | $ | (89) | $ | (66) | (35)% | |||||||
| (1) 2023 includes severance expense and mark-to-market impact on share-based compensation expense. 2022 includes only mark-to-market impact on share-based compensation expense. | ||||||||||||
| Ameriprise Financial, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||
| Reconciliation Table: Return on Equity (ROE) Excluding Accumulated<br>Other Comprehensive Income “AOCI” | ||||||||||||
| Twelve Months Ended<br> December 31, | ||||||||||||
| (in millions, unaudited) | 2023 | 2022 | ||||||||||
| Net income | $ | 2,556 | $ | 3,149 | ||||||||
| Less: Adjustments (1) | (555) | 264 | ||||||||||
| Adjusted operating earnings | 3,111 | 2,885 | ||||||||||
| Less: Annual unlocking (2) | (78) | 107 | ||||||||||
| Adjusted operating earnings excluding unlocking | $ | 3,189 | $ | 2,778 | ||||||||
| Total Ameriprise Financial, Inc. shareholders’ equity | $ | 4,116 | $ | 4,170 | ||||||||
| Less: Accumulated other comprehensive income, net of tax | (2,297) | (1,769) | ||||||||||
| Total Ameriprise Financial, Inc. shareholders’ equity excluding AOCI | 6,413 | 5,939 | ||||||||||
| Less: Equity impacts attributable to the consolidated investment entities | (4) | — | ||||||||||
| Adjusted operating equity | $ | 6,417 | $ | 5,939 | ||||||||
| Return on equity excluding AOCI | 39.9 | % | 53.0 | % | ||||||||
| Adjusted operating return on equity excluding AOCI (3) | 48.5 | % | 48.6 | % | ||||||||
| Adjusted operating return on equity excluding AOCI and unlocking (3) | 49.7 | % | 46.8 | % | ||||||||
| (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%. |
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