AMP 8-K

Ameriprise Financial Inc (AMP)

8-K 2023-10-25 For: 2023-10-25

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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


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))


Exhibit No.						Description

Exhibit 99.1						Press Release dated October 25, 2023 announcing financial results for the third quarter of 2023

Exhibit 104						Cover page Interactive Data File (embedded within the Inline eXtensible Business Reporting Language)


•Third quarter adjusted operating earnings per diluted share excluding unlocking was $7.68, up 21 percent from the prior year, driven by the strength of the company’s diversified business model.						Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer
						“Ameriprise delivered another strong quarter amid a challenging operating environment, demonstrating the strength and flexibility of our diversified business. Wealth Management remains our primary growth driver with good client flows and excellent client-advisor engagement. Complementing Wealth Management are our differentiated Retirement and Protection Solutions and global Asset Management businesses that are generating strong financial results. As a firm, our excellent capital management, consistent financial results and proven expense discipline position us well.”
•Third quarter GAAP net income per diluted share was $8.14 compared to $9.41 a year ago, primarily from market impacts on the valuation of derivatives and market risk benefits, as well as unlocking.
•Assets under management and administration reached $1.2 trillion, up 12 percent from strong client net inflows and market appreciation.
•Adjusted operating net revenues increased 11 percent from organic growth, higher spread revenues and equity market appreciation.
•General and administrative expense remained well managed, up 4 percent. The company made growth investments in attractive areas and continued to manage expenses tightly.
•Pretax adjusted operating margin excluding unlocking reached a new high of 27 percent and adjusted operating ROE excluding unlocking was 50 percent.
•Free cash flow remained approximately 90 percent of earnings, reflecting continued strong performance across market environments. Balance sheet fundamentals were strong with $1.4 billion of excess capital, $1.9 billion of holding company available liquidity, effective hedging and a high-quality, diversified investment portfolio.
•Balance sheet strength and free cash flow generation enabled consistent capital return to shareholders. In the quarter, the company returned $663 million of capital to shareholders, which was approximately 80 percent of adjusted operating earnings excluding unlocking.
•Ameriprise is expected to close on its partnership with Comerica Bank in November.


Ameriprise Financial, Inc.
Third Quarter Summary
	Quarter Ended September 30,						% Better/ (Worse)	Year-to-date September 30,						% Better/ (Worse)
(in millions, except per share amounts, unaudited)	2023			2022				2023			2022
GAAP net income	$	872		$	1,061		(18)%	$	2,179		$	2,500		(13)%
Adjusted operating earnings	$	745		$	823		(9)%	$	2,350		$	2,153		9%
Adjusted operating earnings excluding unlocking (see reconciliation starting on p. 25)	$	823		$	716		15%	$	2,428		$	2,046		19%

GAAP net income per diluted share	$	8.14		$	9.41		(13)%	$	20.08		$	21.85		(8)%
Adjusted operating earnings per diluted share	$	6.96		$	7.30		(5)%	$	21.66		$	18.82		15%
Adjusted operating earnings per diluted share excluding unlocking (see reconciliation starting on p. 25)	$	7.68		$	6.35		21%	$	22.38		$	17.88		25%

GAAP Return on Equity, ex. AOCI	44.4		%	55.7		%		44.4		%	55.7		%
Adjusted Operating Return on Equity, ex. AOCI	48.4		%	49.9		%		48.4		%	49.9		%
Adjusted Operating Return on Equity, ex. AOCI and unlocking (see reconciliation on p. 30)	49.6		%	48.0		%		49.6		%	48.0		%

GAAP Equity, ex. AOCI	$	6,665		$	6,283		6%	$	6,665		$	6,283		6%
Available Capital for Capital Adequacy (see reconciliation on p. 28)	$	5,247		$	5,259		-	$	5,247		$	5,259		-

Weighted average common shares outstanding:
Basic	104.9			110.5				106.4			112.1
Diluted	107.1			112.7				108.5			114.4


Date of Report (Date of earliest event reported):			October 25, 2023


AMERIPRISE FINANCIAL, INC.
(Exact name of registrant as specified in its charter)


Former name or former address, if changed since last report:			Not Applicable


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.			☐


			Ameriprise Financial, Inc. Minneapolis, MN NYSE: AMP October 25, 2023


Ameriprise Financial, Inc.
Advice & Wealth Management Segment Adjusted Operating Results
	Quarter Ended September 30,						% Better/ (Worse)
(in millions, unaudited)	2023			2022
Adjusted operating net revenues	$	2,407		$	2,137		13%

Distribution expenses	1,253			1,149			(9)%
Interest and debt expense	6			3			NM
General and administrative expenses (1)	419			390			(7)%
Adjusted operating expenses	1,678			1,542			(9)%
Pretax adjusted operating earnings	$	729		$	595		23%

Pretax adjusted operating margin (1)	30.3		%	27.8		%	250 bps


(1) Excluding $20 million regulatory accrual, G&A was up 2 percent to $399 million and margin increased 330 basis points to 31.1 percent.
NM Not Meaningful - variance equal to or greater than 100%


	Quarter Ended September 30,				% Better/ (Worse)
(in billions, unless otherwise noted)	2023		2022
Total client assets	$	816	$	711	15%
Total client net flows	$	8.9	$	11.2	(20)%
Wrap net flows	$	5.4	$	6.4	(16)%
AWM cash balances	$	40.5	$	46.3	(13)%

Adjusted operating net revenue per advisor (TTM in thousands)	$	901	$	819	10%


Ameriprise Financial, Inc.
Asset Management Segment Adjusted Operating Results
	Quarter Ended September 30,						% Better/ (Worse)
(in millions, unaudited)	2023			2022
Adjusted operating net revenues	$	826		$	823		-

Distribution expenses	234			238			2%
Amortization of deferred acquisition costs	1			2			50%
Interest and debt expense	2			1			NM
General and administrative expenses	390			391			-
Adjusted operating expenses	627			632			1%
Pretax adjusted operating earnings	$	199		$	191		4%

Net pretax adjusted operating margin (1)	35.7		%	35.6		%


	Quarter Ended September 30,						% Better/ (Worse)
(in billions)	2023			2022
Total segment AUM	$	587		$	546		7%

Net Flows
Global Retail net flows, ex. legacy insurance partners flows	$	(3.8)		$	(5.3)		27%
Global Institutional net flows, ex. legacy insurance partners flows	0.5			3.9			(89)%
Legacy insurance partners flows	(0.9)			(1.0)			10%
Total segment net flows	$	(4.2)		$	(2.4)		(77)%

Model delivery AUA Flows (2)	$	0.2		$	(0.5)		NM

(1) See reconciliation on page 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%


Ameriprise Financial, Inc.
Retirement & Protection Solutions Segment Adjusted Operating Results
	Quarter Ended September 30,				% Better/ (Worse)
(in millions, unaudited)	2023		2022
Adjusted operating net revenues	$	876	$	783	12%
Adjusted operating expenses	776		458		(69)%
Pretax adjusted operating earnings (including unlocking)	$	100	$	325	(69)%
Unlocking	(104)		128		NM
Pretax adjusted operating earnings excluding unlocking	$	204	$	197	4%

NM Not Meaningful - variance equal to or greater than 100%


Ameriprise Financial, Inc.
Consolidated GAAP Results
(in millions, except per share amounts, unaudited)	3 Qtr 2023		3 Qtr 2022		% Better/ (Worse)	2 Qtr 2023		% Better/ (Worse)
Revenues
Management and financial advice fees	$	2,287	$	2,172	5%	$	2,199	4%
Distribution fees	463		506		(8)%	482		(4)%
Net investment income	809		349		NM	811		-
Premiums, policy and contract charges	390		354		10%	383		2%
Other revenues	127		118		8%	132		(4)%
Total revenues	4,076		3,499		16%	4,007		2%
Banking and deposit interest expense	151		15		NM	131		(15)%
Total net revenues	3,925		3,484		13%	3,876		1%

Expenses
Distribution expenses	1,297		1,198		(8)%	1,248		(4)%
Interest credited to fixed accounts	139		157		11%	161		14%
Benefits, claims, losses and settlement expenses	120		81		(48)%	327		63%
Remeasurement (gains) losses of future policy benefit reserves	(12)		(1)		NM	—		-
Change in fair value of market risk benefits	168		(321)		NM	(99)		NM
Amortization of deferred acquisition costs	62		58		(7)%	61		(2)%
Interest and debt expense	84		52		(62)%	84		-
General and administrative expense	950		925		(3)%	967		2%
Total expenses	2,808		2,149		(31)%	2,749		(2)%
Pretax income	1,117		1,335		(16)%	1,127		(1)%
Income tax provision	245		274		11%	237		(3)%
Net income	$	872	$	1,061	(18)%	$	890	(2)%

Earnings per share
Basic earnings per share	$	8.31	$	9.60		$	8.36
Earnings per diluted share	$	8.14	$	9.41		$	8.21

Weighted average common shares outstanding
Basic	104.9		110.5			106.4
Diluted	107.1		112.7			108.4

NM Not Meaningful - variance equal to or greater than 100%


Ameriprise Financial, Inc.
Consolidated Highlights and Capital Summary
(in millions unless otherwise noted, unaudited)	3 Qtr 2023		3 Qtr 2022		% Better/ (Worse)	2 Qtr 2023		% Better/ (Worse)

Assets Under Management and Administration
Advice & Wealth Management AUM	$	440,703	$	382,364	15%	$	451,249	(2)%
Asset Management AUM	587,171		546,493		7%	616,598		(5)%
Corporate AUM	349		170		NM	297		18%
Eliminations	(37,795)		(35,494)		(6)%	(39,308)		4%
Total Assets Under Management	990,428		893,533		11%	1,028,836		(4)%
Total Assets Under Administration	242,336		207,965		17%	247,952		(2)%
Total AUM and AUA	$	1,232,764	$	1,101,498	12%	$	1,276,788	(3)%

S&P 500
Daily average	4,456		3,983		12%	4,207		6%
Period end	4,288		3,586		20%	4,450		(4)%

Weighted Equity Index (WEI) (1)
Daily average	2,903		2,606		11%	2,769		5%
Period end	2,788		2,347		19%	2,900		(4)%

Common shares
Beginning balance	102.8		108.4		(5)%	104.4		(2)%
Repurchases	(1.5)		(1.8)		17%	(1.6)		6%
Issuances	0.3		0.1		NM	—		-
Other	(0.2)		—		-	—		-
Total common shares outstanding	101.4		106.7		(5)%	102.8		(1)%
Restricted stock units	2.6		2.8		(7)%	2.7		(4)%
Total basic common shares outstanding	104.0		109.5		(5)%	105.5		(1)%
Total potentially dilutive shares	2.2		2.3		(4)%	2.1		5%
Total diluted shares	106.2		111.8		(5)%	107.6		(1)%

Capital Returned to Shareholders
Dividends paid	$	143	$	140	2%	$	146	(2)%
Common stock share repurchases	520		492		6%	492		6%
Total Capital Returned to Shareholders	$	663	$	632	5%	$	638	4%

(1) Weighted Equity Index is an Ameriprise calculated proxy for equity market movements calculated using a weighted average of the S&P 500, Russell 2000, Russell Midcap and MSCI EAFE indices based on North America distributed equity assets.
NM Not Meaningful - variance equal to or greater than 100%


Ameriprise Financial, Inc.
Advice & Wealth Management Segment Operating Metrics
(in millions unless otherwise noted, unaudited)	3 Qtr 2023			3 Qtr 2022			% Better/ (Worse)	2 Qtr 2023			% Better/ (Worse)

AWM Total Client Assets	$	816,019		$	711,428		15%	$	833,347		(2)%

Total Client Flows	$	8,901		$	11,164		(20)%	$	9,408		(5)%

Total Wrap Accounts
Beginning assets	$	454,689		$	399,287		14%	$	434,674		5%
Net flows	5,391			6,449			(16)%	5,610			(4)%
Market appreciation (depreciation) and other	(16,019)			(20,526)			22%	14,405			NM
Total wrap ending assets	$	444,061		$	385,210		15%	$	454,689		(2)%

Advisory wrap account assets ending balance (1)	$	439,341		$	381,136		15%	$	449,857		(2)%

Brokerage Cash & Certificates Balances
On-balance sheet (Net Investment Income)
On-balance sheet - broker dealer	$	2,554		$	3,345		(24)%	$	2,605		(2)%
On-balance sheet - bank	20,970			18,594			13%	20,933			-
On-balance sheet - certificate	12,612			6,202			NM	12,069			4%
Total on-balance sheet	$	36,136		$	28,141		28%	$	35,607		1%
Off-balance sheet (Distribution Fees)
Off-balance sheet - broker dealer	$	4,347		$	18,155		(76)%	$	6,413		(32)%
Total brokerage cash & certificates balances	$	40,483		$	46,296		(13)%	$	42,020		(4)%

Gross Fee Yield
On-balance sheet - broker dealer	5.30		%	1.74		%		4.72		%
On-balance sheet - bank	4.97		%	2.98		%		4.76		%
On-balance sheet - certificates	5.40		%	2.75		%		5.20		%
Off-balance sheet - broker dealer	4.28		%	2.13		%		4.14		%



Financial Advisors
Employee advisors	2,104			2,089			1%	2,108			-
Franchisee advisors	8,154			8,193			-	8,166			-
Total financial advisors	10,258			10,282			-	10,274			-


Ameriprise Financial, Inc.
Asset Management Segment Operating Metrics
(in millions, unaudited)	3 Qtr 2023			3 Qtr 2022			% Better/ (Worse)	2 Qtr 2023			% Better/ (Worse)

Managed Assets Rollforward
Global Retail Funds
Beginning assets	$	327,420		$	322,938		1%	$	321,391		2%
Inflows	11,223			11,715			(4)%	11,547			(3)%

Outflows	(15,166)			(17,642)			14%	(16,323)			7%
Net VP/VIT fund flows	(1,216)			(999)			(22)%	(1,270)			4%
Net new flows	(5,159)			(6,926)			26%	(6,046)			15%
Reinvested dividends	1,320			1,647			(20)%	1,265			4%
Net flows	(3,839)			(5,279)			27%	(4,781)			20%
Distributions	(1,514)			(1,861)			19%	(1,544)			2%

Market appreciation (depreciation) and other	(8,478)			(15,281)			45%	9,885			NM
Foreign currency translation (1)	(3,419)			(4,314)			21%	2,469			NM
Total ending assets	310,170			296,203			5%	327,420			(5)%
% of total retail assets sub-advised	16.0		%	15.7		%		15.9		%

Global Institutional
Beginning assets	289,178			275,212			5%	286,288			1%
Inflows (2)	8,404			14,932			(44)%	11,708			(28)%

Outflows (2)	(8,809)			(12,056)			27%	(12,180)			28%
Net flows	(405)			2,876			NM	(472)			14%

Market appreciation (depreciation) and other (3)	(4,607)			(17,785)			74%	(1,852)			NM
Foreign currency translation (1)	(7,165)			(10,013)			28%	5,214			NM
Total ending assets	277,001			250,290			11%	289,178			(4)%

Total managed assets	$	587,171		$	546,493		7%	$	616,598		(5)%

Total net flows	$	(4,244)		$	(2,403)		(77)%	$	(5,253)		19%

Legacy insurance partners flows	$	(950)		$	(1,053)		10%	$	(1,377)		31%

Total Assets Under Advisement (4)	$	26,756		$	22,313		20%	$	25,282		6%


Ameriprise Financial, Inc.
Corporate & Other Segment Adjusted Operating Results
	Quarter Ended September 30,				% Better/ (Worse)
(in millions, unaudited)	2023		2022
Corporate & Other	$	(74)	$	(73)	(1)%
Closed Blocks (1)	2		(5)		NM
Pretax adjusted operating earnings	$	(72)	$	(78)	8%
Unlocking	5		7		(29)%
Pretax adjusted operating earnings excluding unlocking	$	(77)	$	(85)	9%

Long Term Care excluding unlocking	$	5	$	(6)	NM
Fixed Annuities excluding unlocking	(8)		(6)		(33)%
Pretax adjusted operating earnings excluding unlocking	$	(3)	$	(12)	75%

(1) Long Term Care and Fixed Annuities.
NM Not Meaningful - variance equal to or greater than 100%


Ameriprise Financial, Inc.
Asset Management Segment Performance Metrics
	3 Qtr 2023

Retail Fund Rankings in Top 2 Quartiles or Above Index Benchmark - Asset Weighted	1 year	3 year	5 year	10 year
Equity	66%	72%	77%	87%
Fixed Income	64%	61%	74%	85%
Asset Allocation	69%	52%	74%	90%

4- or 5-star Morningstar rated funds	Overall	3 year	5 year	10 year
Number of Rated Funds	112	74	94	97


Retail Fund performance rankings for each fund are measured on a consistent basis against the most appropriate peer group or index. Peer groupings of Columbia funds are defined by Lipper category and are based on the Primary Share Class (i.e., Institutional if available, otherwise Advisor or Instl3 share class), net of fees. Peer groupings of Threadneedle funds are defined by either IA or Morningstar index and are based on the Primary Share Class. Comparisons to Index are measured Gross of Fees.

To calculate asset weighted performance, the sum of the total assets of the funds with above median ranking are divided by total assets of all funds. Funds with more assets will receive a greater share of the total percentage above or below median.

Aggregated Asset Allocation Funds may include funds that invest in other Columbia or Threadneedle branded mutual funds included in both equity and fixed income.

Morningstar as of 09/30/23. Columbia funds are available for purchase by U.S. customers. Out of 99 Columbia funds rated (based on primary share class), 9 received a 5-star Overall Rating and 31 received a 4-star Overall Rating. Out of 150 Threadneedle funds rated (based on highest-rated share class), 17 received a 5-star Overall Rating and 55 received a 4-star Overall Rating. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics. Not all funds are available in all jurisdictions, to all investors or through all firms. © 2023 Morningstar. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.


Ameriprise Financial, Inc.
Corporate Segment Adjusted Operating Results and Metrics
(in millions, unaudited)	3 Qtr 2023		3 Qtr 2022		% Better/ (Worse)	2 Qtr 2023		% Better/ (Worse)

Corporate Excluding Long Term Care and Fixed Annuities Adjusted Operating Income Statements
Revenues
Management and financial advice fees	$	—	$	—	-	$	—	-
Distribution fees	—		—		-	—		-
Net investment income	17		(11)		NM	24		(29)%
Premiums, policy and contract charges	—		—		-	—		-
Other revenues	2		2		-	—		-
Total revenues	19		(9)		NM	24		(21)%
Banking and deposit interest expense	6		2		NM	3		NM
Adjusted operating total net revenues	13		(11)		NM	21		(38)%

Expenses
Distribution expenses	—		—		-	—		-
Interest credited to fixed accounts	—		—		-	—		-
Benefits, claims, losses and settlement expenses	—		—		-	—		-
Remeasurement (gains) losses of future policy benefit reserves	—		—		-	—		-
Change in fair value of market risk benefits	—		—		-	—		-
Amortization of deferred acquisition costs	—		—		-	—		-
Interest and debt expense	27		14		(93)%	27		-
General and administrative expense	60		48		(25)%	50		(20)%
Adjusted operating expenses	87		62		(40)%	77		(13)%
Pretax adjusted operating earnings (loss)	$	(74)	$	(73)	(1)%	$	(56)	(32)%

NM Not Meaningful - variance equal to or greater than 100%


Ameriprise Financial, Inc.
Eliminations (1) Adjusted Operating Results
(in millions, unaudited)	3 Qtr 2023		3 Qtr 2022		% Better/ (Worse)	2 Qtr 2023		% Better/ (Worse)

Revenues
Management and financial advice fees	$	(38)	$	(35)	(9)%	$	(37)	(3)%
Distribution fees	(283)		(270)		(5)%	(277)		(2)%
Net investment income	(14)		(5)		NM	(12)		(17)%
Premiums, policy and contract charges	(8)		(8)		-	(8)		-
Other revenues	—		—		-	—		-
Total revenues	(343)		(318)		(8)%	(334)		(3)%
Banking and deposit interest expense	(6)		(2)		NM	(3)		NM
Adjusted operating total net revenues	(337)		(316)		(7)%	(331)		(2)%

Expenses
Distribution expenses	(304)		(293)		4%	(299)		2%
Interest credited to fixed accounts	—		—		-	—		-
Benefits, claims, losses and settlement expenses	(4)		(5)		(20)%	(5)		(20)%
Remeasurement (gains) losses of future policy benefit reserves	—		—		-	—		-
Change in fair value of market risk benefits	—		—		-	—		-
Amortization of deferred acquisition costs	—		—		-	—		-
Interest and debt expense	(9)		(3)		NM	(9)		-
General and administrative expense	(20)		(15)		33%	(18)		11%
Adjusted operating expenses	(337)		(316)		7%	(331)		2%
Pretax adjusted operating earnings (loss)	$	—	$	—	-	$	—	-

(1) The majority of the amounts represent the impact of inter-segment transfer pricing for both revenues and expenses.
NM Not Meaningful - variance equal to or greater than 100%


Ameriprise Financial, Inc.
Capital Information
(in millions, unaudited)	September 30, 2023			September 30, 2022			June 30, 2023

Long-term Debt Summary
Senior notes	$	3,550		$	2,800		$	3,550
Finance lease liabilities	22			33			23
Other (1)	(15)			(11)			(16)
Total Ameriprise Financial long-term debt	3,557			2,822			3,557
Non-recourse debt of consolidated investment entities	2,222			2,401			2,264
Total long-term debt	$	5,779		$	5,223		$	5,821

Total Ameriprise Financial long-term debt	$	3,557		$	2,822		$	3,557
Finance lease liabilities	(22)			(33)			(23)
Other (1)	15			11			16
Total Ameriprise Financial long-term debt excluding finance lease liabilities and other	$	3,550		$	2,800		$	3,550

Total equity (2)	$	3,825		$	3,618		$	4,080
Equity of consolidated investment entities	(10)			(6)			(10)
Total equity excluding CIEs	$	3,815		$	3,612		$	4,070

Total Ameriprise Financial capital	$	7,382		$	6,440		$	7,637
Total Ameriprise Financial capital excluding finance lease liabilities, other and equity of CIEs	$	7,365		$	6,412		$	7,620

Debt to capital
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital	48.2		%	43.8		%	46.6		%
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital excluding finance lease liabilities, other and equity of CIEs (2)	48.2		%	43.7		%	46.6		%

Available Capital for Capital Adequacy	$	5,247		$	5,259		$	5,011

(1) Includes adjustments for net unamortized discounts, debt issuance costs and other lease obligations.
(2) Includes accumulated other comprehensive income, net of tax.


Ameriprise Financial, Inc.
Consolidated Balance Sheets
(in millions, unaudited)	September 30, 2023		December 31, 2022

Assets
Cash and cash equivalents	$	7,010	$	6,964
Cash of consolidated investment entities	91		133
Investments	51,995		44,524
Investments of consolidated investment entities	2,166		2,354
Market risk benefits	1,644		1,015
Separate account assets	72,354		73,962
Receivables	14,800		15,595
Receivables of consolidated investment entities	29		20
Deferred acquisition costs	2,725		2,777
Restricted and segregated cash and investments	1,569		2,229
Other assets	10,753		9,277
Other assets of consolidated investment entities	—		2
Total Assets	$	165,136	$	158,852

Liabilities
Policyholder account balances, future policy benefits and claims	$	35,526	$	34,132
Market risk benefits	1,525		2,118
Separate account liabilities	72,354		73,962
Customer deposits	36,109		30,775
Short-term borrowings	201		201
Long-term debt	3,557		2,821
Debt of consolidated investment entities	2,222		2,363
Accounts payable and accrued expenses	2,307		2,242
Other liabilities	7,473		6,316
Other liabilities of consolidated investment entities	37		119
Total Liabilities	161,311		155,049

Equity
Ameriprise Financial
Common shares ($.01 par)	3		3
Additional paid-in capital	9,744		9,517
Retained earnings	21,670		19,918
Treasury stock	(24,752)		(23,089)
Accumulated other comprehensive income, net of tax	(2,840)		(2,546)
Total Equity	3,825		3,803
Total Liabilities and Equity	$	165,136	$	158,852

Supplemental Non-GAAP Information:
Available Capital for Capital Adequacy	$	5,247	$	5,209


Ameriprise Financial, Inc.
Disclosed Items - Included in Adjusted Operating Earnings
(in millions, unaudited)	3 Qtr 2023
	RPS		Corporate
	Valuation Assumption & Model Changes (1)		Valuation Assumption & Model Changes (1)
Revenues
Management and financial advice fees	$	—	$	—
Distribution fees	—		—
Net investment income	—		—
Premiums, policy and contract charges	1		—
Other revenues	—		—
Total revenues	1		—
Banking and deposit interest expense	—		—
Adjusted operating total net revenues	1		—

Expenses
Distribution expenses	—		—
Interest credited to fixed accounts	—		—
Benefits, claims, losses and settlement expenses	(17)		—
Remeasurement (gains) losses of future policy benefit reserves	(6)		(5)
Change in fair value of market risk benefits	128		—
Amortization of deferred acquisition costs	—		—
Interest and debt expense	—		—
General and administrative expense	—		—
Adjusted operating expenses	105		(5)
Pretax adjusted operating earnings (loss)	$	(104)	$	5

(1) Net pretax impact of model changes and the annual review/updating of valuation assumptions, including the annual long term care review.


Ameriprise Financial, Inc.
Reconciliation Table: Earnings
	Quarter Ended September 30,				Per Diluted Share Quarter Ended September 30,				% Better/ (Worse)
(in millions, except per share amounts, unaudited)	2023		2022		2023		2022
Net income	$	872	$	1,061	$	8.14	$	9.41	(13)%
Adjustments:

Net realized investment gains (losses) (1)	(38)		(88)		(0.35)		(0.78)
Market impact on non-traditional long-duration products (1)	211		405		1.96		3.60
Mean reversion-related impacts (1)	—		(1)		—		(0.01)


Integration/restructuring charges (1)	(12)		(11)		(0.11)		(0.10)
Net income (loss) attributable to consolidated investment entities	—		(3)		—		(0.03)
Tax effect of adjustments (2)	(34)		(64)		(0.32)		(0.57)
Adjusted operating earnings	$	745	$	823	$	6.96	$	7.30	(5)%
Pretax impact of annual unlocking	(99)		135		(0.92)		1.20
Tax effect of annual unlocking	21		(28)		0.20		(0.25)
Adjusted operating earnings excluding unlocking	$	823	$	716	$	7.68	$	6.35	21%

Weighted average common shares outstanding:
Basic	104.9		110.5
Diluted	107.1		112.7

(1) Pretax adjusted operating adjustment.
(2) Calculated using the statutory tax rate of 21%.


Ameriprise Financial, Inc.
Reconciliation Table: Pretax Adjusted Operating Earnings and Pretax Adjusted Operating Margin
	Quarter Ended September 30,
(in millions, unaudited)	2023			2022
Total net revenues	$	3,925		$	3,484
Adjustments:
Net realized investment gains (losses)	(38)			(88)
Market impact on non-traditional long-duration products	3			(1)
Mean Reversion related impacts	—			—


Integration/restructuring charges	—			—
CIEs revenue	45			31
Adjusted operating total net revenues	$	3,915		$	3,542
Annual unlocking	1			(1)
Adjusted operating total net revenues excluding unlocking	$	3,914		$	3,543

Total expenses	$	2,808		$	2,149
Adjustments:
CIEs expenses	45			34
Integration/restructuring charges	12			11
Market impact on non-traditional long-duration products	(208)			(406)
Mean reversion-related impacts	—			1


Adjusted operating expenses	$	2,959		$	2,509
Annual unlocking	100			(136)
Adjusted operating total net expenses excluding unlocking	$	2,859		$	2,645

Pretax income	$	1,117		$	1,335
Pretax adjusted operating earnings	$	956		$	1,033
Pretax adjusted operating earnings excluding unlocking	$	1,055		$	898

Pretax income margin	28.5		%	38.3		%
Pretax adjusted operating margin	24.4		%	29.2		%
Pretax adjusted operating margin excluding unlocking	27.0		%	25.3		%


Ameriprise Financial, Inc.
Reconciliation Table: Available Capital for Capital Adequacy
(in millions, unaudited)	September 30, 2023		September 30, 2022		June 30, 2023
Ameriprise Financial GAAP Equity	$	3,825	$	3,618	$	4,080
Less: AOCI	(2,840)		(2,665)		(2,349)
Ameriprise Financial GAAP Equity, excl AOCI	6,665		6,283		6,429
Less: RiverSource Life Insurance Co. GAAP Equity, excluding AOCI	2,084		1,882		1,855
Add: RiverSource Life Insurance Co. statutory total adjusted capital	2,842		2,998		2,653
Less: Goodwill and intangibles	2,487		2,415		2,525
Add: Other adjustments	311		275		309
Available Capital for Capital Adequacy	$	5,247	$	5,259	$	5,011


Ameriprise Financial, Inc.
Reconciliation Table: Effective Tax Rate
	Quarter Ended September 30, 2022
(in millions, unaudited)	GAAP			Adjusted Operating
Pretax income	$	1,335		$	1,033
Income tax provision	$	274		$	210

Effective tax rate	20.5		%	20.3		%


Ameriprise Financial, Inc.
Reconciliation Table: Effective Tax Rate
	Quarter Ended September 30, 2023
(in millions, unaudited)	GAAP			Adjusted Operating
Pretax income	$	1,117		$	956
Income tax provision	$	245		$	211

Pretax income excluding accrual for regulatory matter				$	976
Income tax provision				$	211

Effective tax rate	21.8		%	22.1		%
Effective tax rate excluding accrual for regulatory matter				21.6		%


Ameriprise Financial, Inc.
Reconciliation Table: Effective Tax Rate
	Year-to-date September 30, 2023
(in millions, unaudited)	GAAP			Adjusted Operating
Pretax income	$	2,740		$	2,956
Income tax provision	$	561		$	606

Effective tax rate	20.5		%	20.5		%


Ameriprise Financial, Inc.
Reconciliation Table: Advice & Wealth Management Operating Margin
	Quarter Ended September 30, 2023						% Better/ (Worse)
(in millions, unaudited)	2023			2022
Adjusted operating net revenues	$	2,407		$	2,137		13%

Distribution expenses	1,253			1,149
Interest and debt expense	6			3
General and administrative expenses	419			390
Adjusted operating expenses	1,678			1,542			(9)%
Less: Regulatory accrual	20			—
Adjusted operating expenses excluding accrual for regulatory matter	1,658			1,542			(8)%

Pretax adjusted operating earnings	$	729		$	595		23%
Pretax adjusted operating earnings excluding accrual for regulatory matter	$	749		$	595		26%

Pretax adjusted operating margin	30.3		%	27.8		%	250bps
Pretax adjusted operating margin excluding accrual for regulatory matter	31.1		%	27.8		%	330bps


Ameriprise Financial, Inc.
Reconciliation Table: Asset Management General and Administrative Expense
	Quarter Ended September 30, 2023				% Better/ (Worse)
(in millions, unaudited)	2023		2022
Total G&A Expense	$	390	$	391	-
Less: Impact of foreign exchange translation	12		—
Total G&A Expense excluding impact of foreign exchange translation	$	378	$	391	3%


Ameriprise Financial, Inc.
Reconciliation Table: Return on Equity (ROE) Excluding Accumulated Other Comprehensive Income “AOCI”
	Twelve Months Ended September 30,
(in millions, unaudited)	2023			2022
Net income	$	2,828		$	3,200
Less: Adjustments (1)	(254)			332
Adjusted operating earnings	3,082			2,868
Less: Annual unlocking (2)	(78)			107
Adjusted operating earnings excluding unlocking	$	3,160		$	2,761

Total Ameriprise Financial, Inc. shareholders’ equity	$	3,894		$	4,367
Less: Accumulated other comprehensive income, net of tax	(2,477)			(1,383)
Total Ameriprise Financial, Inc. shareholders’ equity excluding AOCI	6,371			5,750
Less: Equity impacts attributable to the consolidated investment entities	(3)			1
Adjusted operating equity	$	6,374		$	5,749

Return on equity excluding AOCI	44.4		%	55.7		%
Adjusted operating return on equity excluding AOCI (3)	48.4		%	49.9		%
Adjusted operating return on equity excluding AOCI and unlocking (3)	49.6		%	48.0		%

(1) Adjustments reflect the sum of after-tax net realized investment gains/losses, net of the reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and related reinsurance accrual; mean reversion related impacts; block transfer reinsurance transaction impacts; the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments; gain or loss on disposal of a business that is not considered discontinued operations; integration and restructuring charges; income (loss) from discontinued operations; and net income (loss) from consolidated investment entities. After-tax is calculated using the statutory tax rate of 21%.
(2) After-tax is calculated using the statutory tax rate of 21%.
(3) Adjusted operating return on equity, excluding AOCI is calculated using adjusted operating earnings in the numerator, and Ameriprise Financial shareholders’ equity, excluding AOCI and the impact of consolidating investment entities using a five-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory tax rate of 21%.