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Ameriprise Financial Reports First Quarter 2024 Results, Raises Quarterly Dividend 10 Percent

Ameriprise Financial, Inc. (NYSE: AMP):

Earnings Per Diluted Share

 

Return on Equity, ex AOCI (1)

 

Q1 2024

 

 

Q1 2024

GAAP

$9.46

 

GAAP

48.1%

Adjusted Operating

$8.39

 

Adjusted Operating

49.0%

 

 

 

 

 

  • First quarter adjusted operating earnings per diluted share was $8.39, up 16 percent from strong growth across the company.

 

Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer

 

 

“Ameriprise delivered another good quarter with contributions across our diversified business.

 

Wealth Management continues to be our primary growth driver with firm-wide assets under management and administration increasing to a new high of $1.4 trillion aided by positive markets. The combination of our businesses and capabilities provides important strength, allowing us to serve clients’ needs well in a dynamic operating environment.

 

Our capital position is a consistent differentiator. Ameriprise generates significant free cash flow that we invest for growth and return to shareholders, including today’s announcement of another increase in our dividend, up 10 percent.”

 

  • First quarter GAAP net income per diluted share was $9.46 compared to $3.79 a year ago, primarily from market impacts on the valuation of derivatives and market risk benefits.

 

  • Adjusted operating net revenues increased 11 percent from organic growth, strong equity markets and higher spread revenues.

 

  • Assets under management and administration reached $1.4 trillion, up 15 percent from strong client net inflows and market appreciation.

 

  • General and administrative expenses remained well managed with a continued focus on enhancing operational efficiency and effectiveness.

 

  • Pretax adjusted operating margin was 26.3 percent and adjusted operating return on equity was 49.0 percent.

 

  • The company returned $650 million of capital to shareholders in the quarter, demonstrating its balance sheet strength and strong free cash flow generation.

 

  • During the quarter, Columbia Threadneedle Investments ranked in the top 10 of Barron's annual ranking of the Best Fund Families.(2)

 

(1) Return on equity excluding AOCI is calculated on a trailing 12-month basis.

(2) See page 8 for related information.

 

Ameriprise Financial, Inc.

First Quarter Summary

 

Quarter Ended March 31,

% Better/

(Worse)

 

(in millions, except per share amounts, unaudited)

 

2024

 

 

2023

 

 

GAAP net income

$

990

 

$

417

 

NM

 

Adjusted operating earnings

(reconciliation on p. 24)

$

878

 

$

798

 

10%

 

 

 

 

 

 

GAAP net income per diluted share

$

9.46

 

$

3.79

 

NM

 

Adjusted operating earnings per diluted share

(reconciliation on p. 24)

$

8.39

 

$

7.25

 

16%

 

 

 

 

 

 

GAAP Return on Equity, ex. AOCI

 

48.1

%

 

45.2

%

 

 

Adjusted Operating Return on Equity, ex. AOCI

(reconciliation on p. 27)

 

49.0

%

 

49.5

%

 

 

 

 

 

 

 

GAAP Equity, ex. AOCI

$

6,809

 

$

6,129

 

11%

 

Available Capital for Capital Adequacy

(reconciliation on p. 25)

$

5,135

 

$

5,377

 

(5)%

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

Basic

 

102.8

 

 

107.9

 

 

 

Diluted

 

104.6

 

 

110.0

 

 

 

 

 

 

 

 

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

 

First quarter 2024 GAAP results included favorable market impacts on the valuation of derivatives and market risk benefits, while the prior year quarter included unfavorable market impacts on the valuation of derivatives and market risk benefits.

 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment Adjusted Operating Results

 

Quarter Ended March 31,

% Better/

(Worse)

(in millions, unaudited)

 

2024

 

 

 

2023

 

Adjusted operating net revenues

$

2,560

 

$

2,265

 

13%

 

 

 

 

Distribution expenses

 

1,369

 

 

1,173

 

(17)%

Interest and debt expense

 

9

 

 

7

 

(29)%

General and administrative expenses

 

420

 

 

392

 

(7)%

Adjusted operating expenses

 

1,798

 

 

1,572

 

(14)%

Pretax adjusted operating earnings

$

762

 

$

693

 

10%

 

 

 

 

Pretax adjusted operating margin

 

29.8

%

 

30.6

%

(80) bps

 

 

 

 

 

 

 

 

 

Quarter Ended March 31,

% Better/

(Worse)

(in billions, unless otherwise noted)

 

2024

 

 

 

2023

 

Total client assets

$

954

 

$

799

19%

Total client net flows

$

8.5

 

 

$

12.3

 

(31)%

Wrap net flows

$

6.5

 

 

$

6.2

 

4%

AWM cash balances

$

43.3

 

 

$

44.3

 

(2)%

Adjusted operating net revenue per advisor (TTM in thousands)

$

942

 

 

$

847

 

11%

 

 

 

 

 

Advice & Wealth Management pretax adjusted operating earnings and margin were strong at $762 million and 29.8 percent, respectively.

Adjusted operating net revenues increased 13 percent to $2.6 billion from growth in client assets in both wrap and brokerage accounts, increased transactional activity and a 30 percent increase in bank net investment income.

Adjusted operating expenses increased 14 percent to $1.8 billion compared to a year ago. Distribution expenses increased 17 percent. General and administrative expense was $420 million, up 7 percent. The company expects mid-single digit growth in general and administrative expenses for the full year.

The Wealth Management business continued to deliver profitable organic growth. Clients and advisors remained engaged and focused on positioning portfolios to meet financial planning goals through the market cycle.

  • Total client assets grew 19 percent to $954 billion, with wrap assets up 20 percent to $522 billion. In the quarter, total client net flows were $8.5 billion, including wrap flows of $6.5 billion.
  • Transactional activity increased 17 percent with strong growth in structured annuities and brokerage, an initial sign that clients are leveraging the company’s planning model to put money back to work.
  • Cash balances were fairly stable at $43.3 billion, with cash sweep down only $1.0 billion in the quarter reflecting normal seasonal patterns.
  • Total client cash including third-party money market funds and brokered CDs increased $0.9 billion sequentially to $82.4 billion, as clients remain heavily concentrated in yield-oriented products.
  • The advisor network and advisor productivity grew from a year ago. Adjusted operating net revenue per advisor on a trailing 12-month basis was $942,000, up 11 percent from enhanced productivity, business growth and market appreciation, and the company added 64 experienced advisors in the quarter.

 

Ameriprise Financial, Inc.

Asset Management Segment Adjusted Operating Results

 

Quarter Ended March 31,

 

% Better/

(Worse)

(in millions, unaudited)

 

2024

 

 

 

2023

 

 

Adjusted operating net revenues

$

855

 

$

799

 

7%

 

 

 

 

Distribution expenses

 

242

 

 

230

 

(5)%

Amortization of deferred acquisition costs

 

2

 

 

1

 

NM

Interest and debt expense

 

2

 

 

2

 

-

General and administrative expenses

 

403

 

 

401

 

-

Adjusted operating expenses

 

649

 

 

634

 

(2)%

Pretax adjusted operating earnings

$

206

 

$

165

 

25%

 

 

 

 

Net pretax adjusted operating margin (1)

 

34.9

%

 

31.0

%

 

 

 

 

 

 

 

 

 

 

Quarter Ended March 31,

 

% Better/

(Worse)

(in billions)

 

2024

 

 

 

2023

 

 

Total segment AUM

$

652

 

$

608

 

7%

 

 

 

 

Net Flows

 

 

 

Global Retail net flows, ex. legacy insurance partners flows

$

(2.7

)

$

(4.5

)

39%

Global Institutional net flows, ex. legacy insurance partners flows

 

(2.2

)

 

2.8

 

NM

Legacy insurance partners flows

 

(0.8

)

 

(0.8

)

3%

Total segment net flows

$

(5.7

)

$

(2.5

)

NM

 

 

 

 

Model delivery AUA Flows (2)

$

0.2

 

$

(0.2

)

NM

 

 

 

 

(1) See reconciliation on page 13.

 

 

 

(2) Estimated based on the period-to-period change in assets less calculated performance based on strategy returns on a one-quarter lag.

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

Asset Management adjusted operating net revenues grew 7 percent to $855 million and pretax adjusted operating earnings increased 25 percent to $206 million. Financial results reflected equity market appreciation and disciplined expense management, which more than offset the cumulative impact of net outflows. Net pretax adjusted operating margin was 35 percent, consistent with the company’s targeted range of 31 to 35 percent.

Adjusted operating expenses increased 2 percent, with general and administrative expenses flat from a year ago. Adjusted for foreign exchange and higher performance fee compensation, general and administrative expense was 3 percent lower than last year reflecting the benefits from comprehensive expense management initiatives taken since 2023.

Total assets under management increased 7 percent to $652 billion as equity market appreciation more than offset net outflows. The underlying fee rate remained stable at 46 basis points.

In the quarter, net outflows were $5.7 billion. Flows included $0.8 billion of outflows related to legacy insurance partners.

  • Retail net outflows were $2.7 billion, consistent with other active managers. Gross sales improved in North America and EMEA year-over-year and sequentially, while redemptions remained stable.
  • Global institutional outflows were $2.2 billion, primarily from a slowdown in the funding of new mandates, as well as redemptions in lower fee mandates and $0.4 billion of outflows from the previously announced proactive portfolio manager actions related to expense management initiatives.

 

Ameriprise Financial, Inc.

Retirement & Protection Solutions Segment Adjusted Operating Results

 

Quarter Ended March 31,

 

% Better/

(Worse)

(in millions, unaudited)

 

2024

 

 

 

2023

 

 

Adjusted operating net revenues

$

912

 

$

824

11%

Adjusted operating expenses

 

713

 

 

 

630

 

(13)%

Pretax adjusted operating earnings

$

199

 

 

$

194

 

3%

 

 

 

 

 

Retirement & Protection Solutions pretax adjusted operating earnings increased 3 percent to $199 million, reflecting the benefit of higher interest rates and equity markets offset by higher distribution expenses associated with strong structured annuity sales levels. These high-quality books of business continued to generate strong free cash flow and return on capital with a differentiated risk profile.

Retirement & Protection Solutions sales increased 33 percent to $1.3 billion primarily from strong sales growth in structured variable annuities similar to the industry. Protection sales grew 8 percent to $65 million with the majority of sales in higher margin accumulation VUL products.

 

Ameriprise Financial, Inc.

Corporate & Other Segment Adjusted Operating Results

 

Quarter Ended March 31,

 

% Better/

(Worse)

(in millions, unaudited)

 

2024

 

 

 

2023

 

 

Corporate & Other, excluding Closed Blocks

$

(99

)

 

$

(73

)

(36)%

Closed Blocks (1)

 

10

 

 

 

(1

)

NM

Pretax adjusted operating earnings / (loss)

$

(89

)

 

$

(74

)

(20)%

 

 

 

 

 

Long Term Care

$

16

 

 

$

8

 

NM

Fixed Annuities

 

(6

)

 

 

(9

)

33%

Closed Blocks pretax adjusted operating earnings / (loss)

$

10

 

 

$

(1

)

NM

 

 

 

 

 

(1) Long Term Care and Fixed Annuities.

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

Total Corporate & Other Excluding Closed Blocks pretax adjusted operating loss was $99 million, which included $16 million of unfavorable mark-to-market impacts on share-based compensation expense, severance expense and a lease write-down.

Long Term Care pretax adjusted operating earnings increased to $16 million, showing continued improvement in financial performance from higher investment yields.

Fixed Annuities pretax adjusted operating loss was consistent with expectations at $6 million.

Taxes

The operating effective tax rate was 18.6 percent, reflecting favorable share-based accounting tax benefits in the quarter. The operating effective tax rate is expected to be approximately 21 percent for full year 2024.

About Ameriprise Financial

At Ameriprise Financial, we have been helping people feel confident about their financial future for more than 125 years. With extensive investment advice, asset management and insurance capabilities and a nationwide network of over 10,000 financial advisors, we have the strength and expertise to serve the full range of individual and institutional investors' financial needs. For more information, or to find an Ameriprise financial advisor, visit ameriprise.com.

Ameriprise Financial Services, LLC offers financial planning services, investments, insurance and annuity products. Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA and managed by Columbia Management Investment Advisers, LLC. Threadneedle International Limited, Columbia Threadneedle Asset Managers Limited, Columbia Threadneedle (EM) Investments Limited, and Pyrford International Ltd, are SEC- and FCA-registered investment adviser affiliates of Columbia Management Investment Advisers, LLC based in the U.K. RiverSource insurance and annuity products are issued by RiverSource Life Insurance Company, and in New York only by RiverSource Life Insurance Co. of New York, Albany, New York. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuity products in the state of New York. These companies are part of Ameriprise Financial, Inc. CA License #0684538. RiverSource Distributors, Inc. (Distributor), Member FINRA.

Non-GAAP Financial Measures

The company believes the presentation of adjusted operating measures, available capital for capital adequacy and other non-GAAP financial measures, and the corresponding ratios, best represents the underlying performance of our core operations and facilitates a more meaningful trend analysis without the distortion of various adjustment items. Management uses non-GAAP financial measures to evaluate our financial performance on a basis comparable to that used by some securities analysts and investors and to provide a valuable perspective for investors. These non-GAAP financial measures are taken into consideration, to varying degrees, for purposes of business planning and analysis and for certain compensation-related matters. Non-GAAP financial measures are intended to supplement investors’ understanding of our performance and should not be considered alternatives for financial measures presented in accordance with GAAP. These measures are discussed in more detail below and may not be comparable to other companies’ similarly titled non-GAAP financial measures. Non-GAAP financial measure reconciliations can be found on the subsequent pages.

Forward-Looking Statements

This news release contains forward-looking statements that reflect management’s plans, estimates and beliefs. Actual results could differ materially from those described in these forward-looking statements. Examples of such forward-looking statements include:

  • statements of the company’s plans, intentions, positioning, expectations, objectives or goals, including those relating to asset flows, mass affluent and affluent client acquisition strategy, client retention and growth of our client base, financial advisor productivity, retention, recruiting and enrollments, the introduction, cessation, terms or pricing of new or existing products and services, acquisition integration, general and administrative costs, net pretax adjusted operating margin, consolidated tax rate, return of capital to shareholders, and excess capital position and financial flexibility to capture additional growth opportunities;
  • other statements about future economic performance, the performance of equity markets and interest rate variations and the economic performance of the United States and of global markets;
  • statements estimating Advice & Wealth Management general and administrative expenses for full year 2024;
  • statements estimating the expected full year 2024 operating effective tax rate; and
  • statements of assumptions underlying such statements.

The words “believe,” “expect,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “forecast,” “on track,” “project,” ”continue,” “able to remain”, “resume,” “deliver,” “develop,” “evolve,” “drive,” ”enable,” “flexibility,” “commitment,” “scenario,” “case,” “appear,” “expands” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from such statements.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Management cautions readers to carefully consider the risks described in the “Risk Factors” discussion under Part 1, Item 1A of and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2023 available at ir.ameriprise.com. Management undertakes no obligation to update publicly or revise any forward-looking statements.

The financial results discussed in this news release represent past performance only, which may not be used to predict or project future results. The financial results and values presented in this news release are based upon asset valuations that represent estimates as of the date of this news release and may be revised in the company’s Form 10-Q for the period ended March 31, 2024.

Ameriprise Financial announces financial and other information to investors through the company’s investor relations website at ir.ameriprise.com, as well as SEC filings, press releases, public conference calls and webcasts. Investors and others interested in the company are encouraged to visit the investor relations website from time to time, as information is updated and new information is posted. The website also allows users to sign up for automatic notifications in the event new materials are posted. The information found on the website is not incorporated by reference into this release or in any other report or document the company furnishes or files with the SEC.

Barron’s Best Fund Families of 2023 - February 29, 2024: Columbia Threadneedle Investments ranked as follows: One-year (8 out of 49); Five-year (11 out of 47); Ten-year (4 out of 46).

 

Ameriprise Financial, Inc.

Consolidated GAAP Results

(in millions, except per share amounts, unaudited)

1 Qtr 2024

 

1 Qtr 2023

% Better/

(Worse)

4 Qtr 2023

% Better/

(Worse)

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

2,399

 

 

$

2,137

 

12%

$

2,284

 

5%

Distribution fees

 

506

 

 

 

517

 

(2)%

 

469

 

8%

Net investment income

 

901

 

 

 

698

 

29%

 

888

 

1%

Premiums, policy and contract charges

 

390

 

 

 

362

 

8%

 

404

 

(3)%

Other revenues

 

129

 

 

 

131

 

(2)%

 

123

 

5%

Total revenues

 

4,325

 

 

 

3,845

 

12%

 

4,168

 

4%

Banking and deposit interest expense

 

179

 

 

 

103

 

(74)%

 

176

 

(2)%

Total net revenues

 

4,146

 

 

 

3,742

 

11%

 

3,992

 

4%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

1,419

 

 

 

1,226

 

(16)%

 

1,307

 

(9)%

Interest credited to fixed accounts

 

132

 

 

 

164

 

20%

 

190

 

31%

Benefits, claims, losses and settlement expenses

 

295

 

 

 

301

 

2%

 

602

 

51%

Remeasurement (gains) losses of future policy benefit reserves

 

(4

)

 

 

(5

)

(20)%

 

(3

)

33%

Change in fair value of market risk benefits

 

(18

)

 

 

489

 

NM

 

240

 

NM

Amortization of deferred acquisition costs

 

61

 

 

 

62

 

2%

 

61

 

-

Interest and debt expense

 

82

 

 

 

72

 

(14)%

 

84

 

2%

General and administrative expense

 

960

 

 

 

937

 

(2)%

 

1,017

 

6%

Total expenses

 

2,927

 

 

 

3,246

 

10%

 

3,498

 

16%

Pretax income

 

1,219

 

 

 

496

 

NM

 

494

 

NM

Income tax provision

 

229

 

 

 

79

 

NM

 

117

 

(96)%

Net income

$

990

 

 

$

417

 

NM

$

377

 

NM

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

Basic earnings per share

$

9.63

 

 

$

3.86

 

 

$

3.64

 

 

Earnings per diluted share

$

9.46

 

 

$

3.79

 

 

$

3.57

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

Basic

 

102.8

 

 

 

107.9

 

 

 

103.5

 

 

Diluted

 

104.6

 

 

 

110.0

 

 

 

105.7

 

 

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Consolidated Highlights and Capital Summary

(in millions unless otherwise noted, unaudited)

1 Qtr 2024

 

1 Qtr 2023

% Better/

(Worse)

4 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

Assets Under Management and Administration

 

 

 

 

 

Advice & Wealth Management AUM

$

518,080

 

 

$

431,438

 

20%

$

484,825

 

7%

Asset Management AUM

 

652,077

 

 

 

607,679

 

7%

 

636,936

 

2%

Corporate AUM

 

429

 

 

 

243

 

77%

 

395

 

9%

Eliminations

 

(43,181

)

 

 

(38,091

)

(13)%

 

(41,093

)

(5)%

Total Assets Under Management

 

1,127,405

 

 

 

1,001,269

 

13%

 

1,081,063

 

4%

Total Assets Under Administration

 

297,457

 

 

 

234,339

 

27%

 

279,549

 

6%

Total AUM and AUA

$

1,424,862

 

 

$

1,235,608

 

15%

$

1,360,612

 

5%

 

 

 

 

 

 

 

S&P 500

 

 

 

 

 

 

Daily average

 

4,996

 

 

 

3,998

 

25%

 

4,472

 

12%

Period end

 

5,254

 

 

 

4,109

 

28%

 

4,770

 

10%

 

 

 

 

 

 

 

Weighted Equity Index (WEI) (1)

 

 

 

 

 

 

Daily average

 

3,218

 

 

 

2,664

 

21%

 

2,892

 

11%

Period end

 

3,379

 

 

 

2,718

 

24%

 

3,102

 

9%

 

 

 

 

 

 

 

Common shares

 

 

 

 

 

 

Beginning balance

 

100.2

 

 

 

105.3

 

(5)%

 

101.4

 

(1)%

Repurchases

 

(1.2

)

 

 

(1.6

)

25%

 

(1.2

)

-

Issuances

 

1.2

 

 

 

1.1

 

9%

 

0.1

 

NM

Other

 

(0.6

)

 

 

(0.4

)

(50)%

 

(0.1

)

NM

Total common shares outstanding

 

99.6

 

 

 

104.4

 

(5)%

 

100.2

 

(1)%

Restricted stock units

 

2.6

 

 

 

2.6

 

-

 

2.7

 

(4)%

Total basic common shares outstanding

 

102.2

 

 

 

107.0

 

(4)%

 

102.9

 

(1)%

Total potentially dilutive shares

 

1.8

 

 

 

2.0

 

(10)%

 

2.2

 

(18)%

Total diluted shares

 

104.0

 

 

 

109.0

 

(5)%

 

105.1

 

(1)%

 

 

 

 

 

 

 

Capital Returned to Shareholders

 

 

 

 

 

 

Dividends paid

$

143

 

 

$

138

 

4%

$

142

 

1%

Common stock share repurchases

 

507

 

 

 

506

 

-

 

445

 

14%

Total Capital Returned to Shareholders

$

650

 

 

$

644

 

1%

$

587

 

11%

 

 

 

 

 

 

 

(1) Weighted Equity Index is an Ameriprise calculated proxy for equity market movements calculated using a weighted average of the S&P 500, Russell 2000, Russell Midcap and MSCI EAFE indices based on North America distributed equity assets.

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

 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment Adjusted Operating Results

(in millions, unaudited)

1 Qtr 2024

1 Qtr 2023

% Better/

(Worse)

4 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

Revenues

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

Advisory fees

$

1,303

 

$

1,109

 

17%

$

1,196

 

9%

Financial planning fees

 

112

 

 

101

 

11%

 

119

 

(6)%

Transaction and other fees

 

94

 

 

89

 

6%

 

93

 

1%

Total management and financial advice fees

 

1,509

 

 

1,299

 

16%

 

1,408

 

7%

Distribution fees:

 

 

 

 

 

Mutual funds

 

196

 

 

175

 

12%

 

185

 

6%

Insurance and annuity

 

247

 

 

211

 

17%

 

236

 

5%

Off-Balance sheet brokerage cash

 

50

 

 

126

 

(60)%

 

48

 

4%

Other products

 

105

 

 

81

 

30%

 

90

 

17%

Total distribution fees

 

598

 

 

593

 

1%

 

559

 

7%

Net investment income

 

560

 

 

409

 

37%

 

547

 

2%

Other revenues

 

72

 

 

67

 

7%

 

65

 

11%

Total revenues

 

2,739

 

 

2,368

 

16%

 

2,579

 

6%

Banking and deposit interest expense

 

179

 

 

103

 

(74)%

 

176

 

(2)%

Adjusted operating total net revenues

 

2,560

 

 

2,265

 

13%

 

2,403

 

7%

 

 

 

 

 

 

Expenses

 

 

 

 

 

Distribution expenses

 

1,369

 

 

1,173

 

(17)%

 

1,266

 

(8)%

Interest and debt expense

 

9

 

 

7

 

(29)%

 

8

 

(13)%

General and administrative expense

 

420

 

 

392

 

(7)%

 

431

 

3%

Adjusted operating expenses

 

1,798

 

 

1,572

 

(14)%

 

1,705

 

(5)%

Pretax adjusted operating earnings

$

762

 

$

693

 

10%

$

698

 

9%

 

 

 

 

 

 

Pretax adjusted operating margin

 

29.8

%

 

30.6

%

 

 

29.0

%

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment Operating Metrics

(in millions unless otherwise noted, unaudited)

1 Qtr 2024

1 Qtr 2023

% Better/

(Worse)

4 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

AWM Total Client Assets

$

953,769

 

$

798,724

 

19%

$

900,502

 

6%

 

 

 

 

 

 

Total Client Flows (1)

$

8,501

 

$

12,261

 

(31)%

$

22,710

 

(63)%

 

 

 

 

 

 

Total Wrap Accounts

 

 

 

 

 

Beginning assets

$

488,200

 

$

412,096

 

18%

$

444,061

 

10%

Net flows (1)

 

6,518

 

 

6,240

 

4%

 

6,961

 

(6)%

Market appreciation (depreciation) and other

 

27,004

 

 

16,338

 

65%

 

37,178

 

(27)%

Total wrap ending assets

$

521,722

 

$

434,674

 

20%

$

488,200

 

7%

 

 

 

 

 

 

Advisory wrap account assets ending balance (2)

$

516,469

 

$

430,088

 

20%

$

483,315

 

7%

 

 

 

 

 

 

Brokerage Cash & Certificates Balances

 

 

 

 

 

On-balance sheet (Net Investment Income)

 

 

 

 

 

On-balance sheet - broker dealer

$

2,477

 

$

2,854

 

(13)%

$

2,388

 

4%

On-balance sheet - bank

 

21,329

 

 

20,008

 

7%

 

21,498

 

(1)%

On-balance sheet - certificate

 

13,211

 

 

11,102

 

19%

 

13,471

 

(2)%

Total on-balance sheet

$

37,017

 

$

33,964

 

9%

$

37,357

 

(1)%

Off-balance sheet (Distribution Fees)

 

 

 

 

 

Off-balance sheet - broker dealer (1)

$

6,242

 

$

10,350

 

(40)%

$

7,103

 

(12)%

Total brokerage cash & certificates balances

$

43,259

 

$

44,314

 

(2)%

$

44,460

 

(3)%

 

 

 

 

 

 

Gross Fee Yield

 

 

 

 

 

On-balance sheet - broker dealer

 

5.12

%

 

4.27

%

 

 

5.53

%

 

On-balance sheet - bank

 

5.06

%

 

4.46

%

 

 

5.07

%

 

On-balance sheet - certificates

 

5.69

%

 

4.86

%

 

 

5.51

%

 

Off-balance sheet - broker dealer

 

2.95

%

 

3.86

%

 

 

3.49

%

 

 

 

 

 

 

 

Financial Advisors

 

 

 

 

 

Employee advisors

 

2,227

 

 

2,099

 

6%

 

2,228

 

-

Franchisee advisors

 

8,137

 

 

8,160

 

-

 

8,139

 

-

Total financial advisors

 

10,364

 

 

10,259

 

1%

 

10,367

 

-

 

 

 

 

 

 

Advisor Retention

 

 

 

 

 

Employee

 

92.8

%

 

92.8

%

 

 

92.5

%

 

Franchisee

 

92.3

%

 

93.6

%

 

 

92.5

%

 

 

 

 

 

 

 

(1) Q4 2023 includes the addition of $14.7 billion of total client flows from the company's partnership with Comerica, including $2.0 billion of wrap flows and $2.5 billion of cash sweep into off-balance sheet - broker dealer.

(2) Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts. Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.

 

Ameriprise Financial, Inc.

Asset Management Segment Adjusted Operating Results

(in millions, unaudited)

1 Qtr 2024

1 Qtr 2023

% Better/

(Worse)

4 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

Revenues

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

Asset management fees:

 

 

 

 

 

Retail

$

530

 

$

491

 

8%

$

479

 

11%

Institutional

 

159

 

 

152

 

5%

 

203

 

(22)%

Transaction and other fees

 

50

 

 

48

 

4%

 

49

 

2%

Revenue from other sources (1)

 

3

 

 

3

 

-

 

3

 

-

Total management and financial advice fees

 

742

 

 

694

 

7%

 

734

 

1%

Distribution fees:

 

 

 

 

 

Mutual funds

 

56

 

 

52

 

8%

 

53

 

6%

Insurance and annuity

 

39

 

 

38

 

3%

 

38

 

3%

Total distribution fees

 

95

 

 

90

 

6%

 

91

 

4%

Net investment income

 

11

 

 

9

 

22%

 

15

 

(27)%

Other revenues

 

7

 

 

6

 

17%

 

5

 

40%

Total revenues

 

855

 

 

799

 

7%

 

845

 

1%

Banking and deposit interest expense

 

 

 

 

-

 

 

-

Adjusted operating total net revenues

 

855

 

 

799

 

7%

 

845

 

1%

 

 

 

 

 

 

Expenses

 

 

 

 

 

Distribution expenses

 

242

 

 

230

 

(5)%

 

228

 

(6)%

Amortization of deferred acquisition costs

 

2

 

 

1

 

NM

 

2

 

-

Interest and debt expense

 

2

 

 

2

 

-

 

2

 

-

General and administrative expense

 

403

 

 

401

 

-

 

419

 

4%

Adjusted operating expenses

 

649

 

 

634

 

(2)%

 

651

 

-

Pretax adjusted operating earnings

$

206

 

$

165

 

25%

$

194

 

6%

 

 

 

 

 

 

Net Pretax Adjusted Operating Margin Reconciliation

 

 

 

 

Adjusted operating total net revenues

$

855

 

$

799

 

7%

$

845

 

1%

Distribution pass through revenues

 

(192

)

 

(182

)

(5)%

 

(180

)

(7)%

Subadvisory and other pass through revenues

 

(96

)

 

(95

)

(1)%

 

(100

)

4%

Net adjusted operating revenues

$

567

 

$

522

 

9%

$

565

 

-

 

 

 

 

 

 

Pretax adjusted operating earnings

$

206

 

$

165

 

25%

$

194

 

6%

Adjusted operating net investment income

 

(11

)

 

(9

)

(22)%

 

(15

)

27%

Amortization of intangibles

 

3

 

 

6

 

(50)%

 

4

 

(25)%

Net adjusted operating earnings

$

198

 

$

162

 

22%

$

183

 

8%

 

 

 

 

 

 

Pretax adjusted operating margin

 

24.1

%

 

20.7

%

 

 

23.0

%

 

Net pretax adjusted operating margin (2)

 

34.9

%

 

31.0

%

 

 

32.4

%

 

 

 

 

 

 

 

Performance fees (3)

 

 

 

 

 

Performance fees

$

17

 

$

5

 

NM

$

44

 

(61)%

General and administrative expense related to performance fees

 

11

 

 

2

 

NM

 

23

 

52%

Net performance fees

$

6

 

$

3

 

NM

$

21

 

(71)%

 

 

 

 

 

 

(1) Includes revenue from separate accounts that qualify as investment contracts under insurance accounting standards.

(2) Calculated as net adjusted operating earnings as a percentage of net adjusted operating revenues.

(3) Performance fees do not include CLO incentive fees.

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

 

 

Ameriprise Financial, Inc.

Asset Management Segment Operating Metrics

(in millions, unaudited)

1 Qtr 2024

1 Qtr 2023

% Better/

(Worse)

4 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

Managed Assets Rollforward

 

 

 

 

 

Global Retail Funds

 

 

 

 

 

Beginning assets

$

334,860

 

$

309,293

 

8%

$

310,170

 

8%

Inflows

 

14,047

 

 

12,096

 

16%

 

13,029

 

8%

Outflows

 

(16,308

)

 

(16,394

)

1%

 

(17,324

)

6%

Net VP/VIT fund flows

 

(1,560

)

 

(1,187

)

(31)%

 

(1,389

)

(12)%

Net new flows

 

(3,821

)

 

(5,485

)

30%

 

(5,684

)

33%

Reinvested dividends

 

1,010

 

 

842

 

20%

 

4,692

 

(78)%

Net flows

 

(2,811

)

 

(4,643

)

39%

 

(992

)

NM

Distributions

 

(1,206

)

 

(1,008

)

(20)%

 

(5,367

)

78%

Market appreciation (depreciation) and other

 

19,407

 

 

16,074

 

21%

 

27,647

 

(30)%

Foreign currency translation (1)

 

(683

)

 

1,675

 

NM

 

3,402

 

NM

Total ending assets

 

349,567

 

 

321,391

 

9%

 

334,860

 

4%

% of total retail assets sub-advised

 

15.6

%

 

15.7

%

 

 

15.6

%

 

 

 

 

 

 

 

Global Institutional

 

 

 

 

 

Beginning assets

 

302,076

 

 

274,736

 

10%

 

277,001

 

9%

Inflows (2)

 

9,352

 

 

12,759

 

(27)%

 

9,810

 

(5)%

Outflows (2)

 

(12,219

)

 

(10,645

)

(15)%

 

(14,021

)

13%

Net flows

 

(2,867

)

 

2,114

 

NM

 

(4,211

)

32%

Market appreciation (depreciation) and other (3)

 

4,786

 

 

6,322

 

(24)%

 

22,028

 

(78)%

Foreign currency translation (1)

 

(1,485

)

 

3,116

 

NM

 

7,258

 

NM

Total ending assets

 

302,510

 

 

286,288

 

6%

 

302,076

 

-

 

 

 

 

 

 

Total managed assets

$

652,077

 

$

607,679

 

7%

$

636,936

 

2%

 

 

 

 

 

 

Total net flows

$

(5,678

)

$

(2,529

)

NM

$

(5,203

)

(9)%

 

 

 

 

 

 

Legacy insurance partners flows

$

(779

)

$

(799

)

3%

$

(1,212

)

36%

 

 

 

 

 

 

Total Assets Under Advisement (4)

$

28,669

 

$

24,343

 

18%

$

26,160

 

10%

Model delivery AUA flows (5)

$

243

 

$

(244

)

NM

$

308

 

(21)%

 

 

 

 

 

 

(1) Amounts represent local currency to US dollar translation for reporting purposes.

(2) Global Institutional inflows and outflows include net flows from our RiverSource Structured Annuity product and Ameriprise Bank, FSB.

(3) Included in Market appreciation (depreciation) and other for Global Institutional is the change in affiliated general account balance excluding net flows related to our Structured Annuity product and Ameriprise Bank, FSB.

(4) Assets are presented on a one-quarter lag.

(5) Estimated flows based on the period-to-period change in assets less calculated performance based on strategy returns on a one-quarter lag.

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

 

Ameriprise Financial, Inc.

Asset Management Segment Operating Metrics

(in millions, unaudited)

1 Qtr 2024

1 Qtr 2023

% Better/

(Worse)

4 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

Total Managed Assets by Type

 

 

 

 

 

 

 

 

Equity

$

341,406

 

$

308,968

 

10%

$

323,043

 

6%

Fixed income

 

236,588

 

 

 

224,666

 

 

5%

 

238,353

 

 

(1)%

Money market

 

22,164

 

 

 

22,218

 

 

-

 

23,833

 

 

(7)%

Alternative

 

33,002

 

 

 

34,724

 

 

(5)%

 

33,476

 

 

(1)%

Hybrid and other

 

18,917

 

 

 

17,103

 

 

11%

 

18,231

 

 

4%

Total managed assets by type

$

652,077

 

 

$

607,679

 

 

7%

$

636,936

 

 

2%

 

 

 

 

 

 

 

 

 

Average Managed Assets by Type (1)

 

 

 

 

 

 

 

 

Equity

$

330,281

 

 

$

308,576

 

 

7%

$

304,353

 

 

9%

Fixed income

 

235,529

 

 

 

217,792

 

 

8%

 

222,304

 

 

6%

Money market

 

22,607

 

 

 

22,083

 

 

2%

 

22,753

 

 

(1)%

Alternative

 

33,237

 

 

 

34,668

 

 

(4)%

 

33,503

 

 

(1)%

Hybrid and other

 

18,476

 

 

 

16,945

 

 

9%

 

17,329

 

 

7%

Total average managed assets by type

$

640,130

 

 

$

600,064

 

 

7%

$

600,242

 

 

7%

 

 

 

 

 

 

 

 

 

(1) Average ending balances are calculated using the average of the prior period’s ending balance and all months in the current period.

 

Ameriprise Financial, Inc.

Asset Management Segment Performance Metrics

 

1 Qtr 2024

 

 

 

 

 

Retail Fund Rankings in Top 2 Quartiles or Above Index Benchmark - Asset Weighted

1 year

3 year

5 year

10 year

Equity

61%

66%

80%

89%

Fixed Income

74%

53%

75%

85%

Asset Allocation

87%

59%

82%

90%

 

 

 

 

 

4- or 5-star Morningstar rated funds

Overall

3 year

5 year

10 year

Number of Rated Funds

117

71

93

104

 

 

 

 

 

Retail Fund performance rankings for each fund are measured on a consistent basis against the most appropriate peer group or index. Peer groupings of Columbia funds are defined by Lipper category and are based on the Primary Share Class (i.e., Institutional if available, otherwise Advisor or Institutional 3 share class), net of fees. Peer groupings of Threadneedle funds are defined by either IA or Morningstar index and are based on Primary Share Class. Comparisons to Index are measured Gross of Fees.

 

 

 

 

 

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

 

 

 

 

 

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

 

 

 

 

 

Morningstar as of 03/31/24. Columbia funds are available for purchase by U.S. customers. Out of 89 Columbia funds rated (based on primary share class), 3 received a 5-star Overall Rating and 38 received a 4-star Overall Rating. Out of 145 Threadneedle funds rated (based on highest-rated share class), 22 received a 5-star Overall Rating and 54 received a 4-star Overall Rating. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics. Not all funds are available in all jurisdictions, to all investors or through all firms.

 

© 2024 Morningstar. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

Retirement & Protection Solutions Segment Adjusted Operating Results

(in millions, unaudited)

1 Qtr 2024

 

1 Qtr 2023

% Better/

(Worse)

4 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

189

 

 

$

183

 

3%

$

181

 

4%

Distribution fees

 

104

 

 

 

97

 

7%

 

100

 

4%

Net investment income

 

243

 

 

 

195

 

25%

 

245

 

(1)%

Premiums, policy and contract charges

 

374

 

 

 

346

 

8%

 

389

 

(4)%

Other revenues

 

2

 

 

 

3

 

(33)%

 

3

 

(33)%

Total revenues

 

912

 

 

 

824

 

11%

 

918

 

(1)%

Banking and deposit interest expense

 

 

 

 

 

-

 

 

-

Adjusted operating total net revenues

 

912

 

 

 

824

 

11%

 

918

 

(1)%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

124

 

 

 

110

 

(13)%

 

117

 

(6)%

Interest credited to fixed accounts

 

91

 

 

 

88

 

(3)%

 

93

 

2%

Benefits, claims, losses and settlement expenses

 

224

 

 

 

162

 

(38)%

 

226

 

1%

Remeasurement (gains) losses of future policy benefit reserves

 

(2

)

 

 

(3

)

(33)%

 

(2

)

-

Change in fair value of market risk benefits

 

129

 

 

 

115

 

(12)%

 

131

 

2%

Amortization of deferred acquisition costs

 

57

 

 

 

58

 

2%

 

57

 

-

Interest and debt expense

 

12

 

 

 

13

 

8%

 

14

 

14%

General and administrative expense

 

78

 

 

 

87

 

10%

 

80

 

3%

Adjusted operating expenses

 

713

 

 

 

630

 

(13)%

 

716

 

-

Pretax adjusted operating earnings

$

199

 

 

$

194

 

3%

$

202

 

(1)%

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

Retirement & Protection Solutions Segment Operating Metrics

(in millions, unaudited)

1 Qtr 2024

 

1 Qtr 2023

% Better/

(Worse)

4 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

Variable Annuities Rollforwards

 

 

 

 

 

 

Beginning balance

$

80,754

 

 

$

74,385

 

9%

$

75,084

 

8%

Deposit

 

1,158

 

 

 

874

 

32%

 

1,073

 

8%

Withdrawals and terminations

 

(2,067

)

 

 

(1,623

)

(27)%

 

(1,922

)

(8)%

Net flows

 

(909

)

 

 

(749

)

(21)%

 

(849

)

(7)%

Investment performance and interest credited

 

4,197

 

 

 

3,173

 

32%

 

6,519

 

(36)%

Total ending balance - contract accumulation values

$

84,042

 

 

$

76,809

 

9%

$

80,754

 

4%

 

 

 

 

 

 

 

Variable annuities fixed sub-accounts

$

4,067

 

 

$

4,644

 

(12)%

$

4,215

 

(4)%

 

 

 

 

 

 

 

Life Insurance In Force

$

198,550

 

 

$

198,707

 

-

$

198,775

 

-

 

 

 

 

 

 

 

Net Amount at Risk (Life)

$

38,240

 

 

$

38,120

 

-

$

38,406

 

-

 

 

 

 

 

 

 

Net Policyholder Reserves

 

 

 

 

 

 

VUL/UL

$

15,305

 

 

$

13,783

 

11%

$

14,715

 

4%

Term and whole life

 

180

 

 

 

195

 

(8)%

 

187

 

(4)%

Disability insurance

 

521

 

 

 

552

 

(6)%

 

536

 

(3)%

Other insurance

 

528

 

 

 

552

 

(4)%

 

537

 

(2)%

Total net policyholder reserves

$

16,534

 

 

$

15,082

 

10%

$

15,975

 

3%

 

 

 

 

 

 

 

DAC Ending Balances

 

 

 

 

 

 

Variable Annuities DAC

$

1,697

 

 

$

1,733

 

(2)%

$

1,704

 

-

Life and Health DAC

$

957

 

 

$

967

 

(1)%

$

961

 

-

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

Corporate Segment Adjusted Operating Results and Metrics

(in millions, unaudited)

1 Qtr 2024

 

1 Qtr 2023

% Better/

(Worse)

4 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

 

 

 

 

(1

)

NM

 

(8

)

NM

Premiums, policy and contract charges

 

 

 

 

 

-

 

 

-

Other revenues

 

1

 

 

 

2

 

(50)%

 

1

 

-

Total revenues

 

1

 

 

 

1

 

-

 

(7

)

NM

Banking and deposit interest expense

 

8

 

 

 

4

 

NM

 

7

 

(14)%

Adjusted operating total net revenues

 

(7

)

 

 

(3

)

NM

 

(14

)

50%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

-

 

 

-

Interest credited to fixed accounts

 

 

 

 

 

-

 

 

-

Benefits, claims, losses and settlement expenses

 

 

 

 

 

-

 

 

-

Remeasurement (gains) losses of future policy benefit reserves

 

 

 

 

 

-

 

 

-

Change in fair value of market risk benefits

 

 

 

 

 

-

 

 

-

Amortization of deferred acquisition costs

 

 

 

 

 

-

 

 

-

Interest and debt expense

 

23

 

 

 

16

 

(44)%

 

20

 

(15)%

General and administrative expense

 

69

 

 

 

54

 

(28)%

 

83

 

17%

Adjusted operating expenses

 

92

 

 

 

70

 

(31)%

 

103

 

11%

Pretax adjusted operating earnings (loss)

$

(99

)

 

$

(73

)

(36)%

$

(117

)

15%

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Corporate Segment Adjusted Operating Results and Metrics

(in millions, unaudited)

1 Qtr 2024

 

1 Qtr 2023

% Better/

(Worse)

4 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

Long Term Care Adjusted Operating Income Statements

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

 

 

$

 

-

$

 

-

Distribution fees

 

 

 

 

 

-

 

 

-

Net investment income

 

49

 

 

 

44

 

11%

 

48

 

2%

Premiums, policy and contract charges

 

23

 

 

 

23

 

-

 

24

 

(4)%

Other revenues

 

 

 

 

 

-

 

 

-

Total revenues

 

72

 

 

 

67

 

7%

 

72

 

-

Banking and deposit interest expense

 

 

 

 

 

-

 

 

-

Adjusted operating total net revenues

 

72

 

 

 

67

 

7%

 

72

 

-

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

(3

)

 

 

(3

)

-

 

(4

)

(25)%

Interest credited to fixed accounts

 

 

 

 

 

-

 

 

-

Benefits, claims, losses and settlement expenses

 

53

 

 

 

56

 

5%

 

60

 

12%

Remeasurement (gains) losses of future policy benefit reserves

 

(2

)

 

 

(2

)

-

 

(1

)

NM

Change in fair value of market risk benefits

 

 

 

 

 

-

 

 

-

Amortization of deferred acquisition costs

 

 

 

 

 

-

 

 

-

Interest and debt expense

 

2

 

 

 

2

 

-

 

2

 

-

General and administrative expense

 

6

 

 

 

6

 

-

 

5

 

(20)%

Adjusted operating expenses

 

56

 

 

 

59

 

5%

 

62

 

10%

Pretax adjusted operating earnings (loss)

$

16

 

 

$

8

 

NM

$

10

 

60%

 

 

 

 

 

 

 

Long Term Care Policyholder Reserves, net of reinsurance

$

2,615

 

 

$

2,659

 

(2)%

$

2,677

 

(2)%

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Corporate Segment Adjusted Operating Results and Metrics

(in millions, unaudited)

1 Qtr 2024

1 Qtr 2023

% Better/

(Worse)

4 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

Fixed Annuities Adjusted Operating Income Statements

 

 

 

 

 

Revenues

 

 

 

 

 

Management and financial advice fees

$

 

$

 

-

$

 

-

Distribution fees

 

 

 

 

-

 

 

-

Net investment income

 

9

 

 

8

 

13%

 

9

 

-

Premiums, policy and contract charges

 

 

 

1

 

NM

 

 

-

Other revenues

 

47

 

 

53

 

(11)%

 

49

 

(4)%

Total revenues

 

56

 

 

62

 

(10)%

 

58

 

(3)%

Banking and deposit interest expense

 

 

 

 

-

 

 

-

Adjusted operating total net revenues

 

56

 

 

62

 

(10)%

 

58

 

(3)%

 

 

 

 

 

 

Expenses

 

 

 

 

 

Distribution expenses

 

1

 

 

1

 

-

 

1

 

-

Interest credited to fixed accounts

 

55

 

 

61

 

10%

 

57

 

4%

Benefits, claims, losses and settlement expenses

 

 

 

2

 

NM

 

1

 

NM

Remeasurement (gains) losses of future policy benefit reserves

 

 

 

 

-

 

 

-

Change in fair value of market risk benefits

 

 

 

 

-

 

 

-

Amortization of deferred acquisition costs

 

2

 

 

3

 

33%

 

2

 

-

Interest and debt expense

 

 

 

 

-

 

 

-

General and administrative expense

 

4

 

 

4

 

-

 

4

 

-

Adjusted operating expenses

 

62

 

 

71

 

13%

 

65

 

5%

Pretax adjusted operating earnings (loss)

$

(6

)

$

(9

)

33%

$

(7

)

14%

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Eliminations (1) Adjusted Operating Results

(in millions, unaudited)

1 Qtr 2024

 

1 Qtr 2023

% Better/

(Worse)

4 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

(39

)

 

$

(37

)

(5)%

$

(37

)

(5)%

Distribution fees

 

(291

)

 

 

(263

)

(11)%

 

(280

)

(4)%

Net investment income

 

(17

)

 

 

(12

)

(42)%

 

(16

)

(6)%

Premiums, policy and contract charges

 

(9

)

 

 

(8

)

(13)%

 

(8

)

(13)%

Other revenues

 

 

 

 

 

-

 

 

-

Total revenues

 

(356

)

 

 

(320

)

(11)%

 

(341

)

(4)%

Banking and deposit interest expense

 

(8

)

 

 

(4

)

NM

 

(7

)

14%

Adjusted operating total net revenues

 

(348

)

 

 

(316

)

(10)%

 

(334

)

(4)%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

(314

)

 

 

(285

)

10%

 

(301

)

4%

Interest credited to fixed accounts

 

 

 

 

 

-

 

 

-

Benefits, claims, losses and settlement expenses

 

(5

)

 

 

(5

)

-

 

(5

)

-

Remeasurement (gains) losses of future policy benefit reserves

 

 

 

 

 

-

 

 

-

Change in fair value of market risk benefits

 

 

 

 

 

-

 

 

-

Amortization of deferred acquisition costs

 

 

 

 

 

-

 

 

-

Interest and debt expense

 

(8

)

 

 

(8

)

-

 

(7

)

14%

General and administrative expense

 

(21

)

 

 

(18

)

17%

 

(21

)

-

Adjusted operating expenses

 

(348

)

 

 

(316

)

10%

 

(334

)

4%

Pretax adjusted operating earnings (loss)

$

 

 

$

 

-

$

 

-

 

 

 

 

 

 

 

(1) The majority of the amounts represent the impact of inter-segment transfer pricing for both revenues and expenses.

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

 

Ameriprise Financial, Inc.

Capital Information

(in millions, unaudited)

March 31,

2024

March 31,

2023

December 31,

2023

 

 

 

 

Long-term Debt Summary

 

 

 

Senior notes

$

3,400

 

$

3,550

 

$

3,400

 

Finance lease liabilities

 

17

 

 

28

 

 

20

 

Other (1)

 

(19

)

 

(18

)

 

(21

)

Total Ameriprise Financial long-term debt

 

3,398

 

 

3,560

 

 

3,399

 

Non-recourse debt of consolidated investment entities

 

2,119

 

 

2,367

 

 

2,155

 

Total long-term debt

$

5,517

 

$

5,927

 

$

5,554

 

 

 

 

 

Total Ameriprise Financial long-term debt

$

3,398

 

$

3,560

 

$

3,399

 

Finance lease liabilities

 

(17

)

 

(28

)

 

(20

)

Other (1)

 

19

 

 

18

 

 

21

 

Total Ameriprise Financial long-term debt excluding finance lease liabilities and other

$

3,400

 

$

3,550

 

$

3,400

 

 

 

 

 

Total equity (2)

$

4,879

 

$

4,144

 

$

4,729

 

Equity of consolidated investment entities

 

(1

)

 

(8

)

 

(1

)

Total equity excluding CIEs

$

4,878

 

$

4,136

 

$

4,728

 

 

 

 

 

Total Ameriprise Financial capital

$

8,277

 

$

7,704

 

$

8,128

 

Total Ameriprise Financial capital excluding finance lease liabilities, other and equity of CIEs

$

8,278

 

$

7,686

 

$

8,128

 

 

 

 

 

Debt to capital

 

 

 

Total Ameriprise Financial long-term debt to total Ameriprise Financial capital

 

41.1

%

 

46.2

%

 

41.8

%

Total Ameriprise Financial long-term debt to total Ameriprise Financial capital excluding finance lease liabilities, other and equity of CIEs (2)

 

41.1

%

 

46.2

%

 

41.8

%

 

 

 

 

Available Capital for Capital Adequacy

$

5,135

 

$

5,377

 

$

5,418

 

 

 

 

 

(1) Includes adjustments for net unamortized discounts, debt issuance costs and other lease obligations.

(2) Includes accumulated other comprehensive income, net of tax.

 

Ameriprise Financial, Inc.

Consolidated Balance Sheets

(in millions, unaudited)

March 31,

2024

 

December 31,

2023

 

 

 

 

 

 

Assets

 

 

 

 

Cash and cash equivalents

$

7,071

 

 

$

7,477

 

 

Cash of consolidated investment entities

 

135

 

 

 

87

 

 

Investments

 

56,249

 

 

 

55,489

 

 

Investments of consolidated investment entities

 

2,028

 

 

 

2,099

 

 

Market risk benefits

 

1,964

 

 

 

1,427

 

 

Separate account assets

 

79,753

 

 

 

77,457

 

 

Receivables

 

14,911

 

 

 

15,078

 

 

Receivables of consolidated investment entities

 

25

 

 

 

28

 

 

Deferred acquisition costs

 

2,701

 

 

 

2,713

 

 

Restricted and segregated cash and investments

 

1,591

 

 

 

1,635

 

 

Other assets

 

13,403

 

 

 

11,700

 

 

Other assets of consolidated investment entities

 

 

 

 

1

 

 

Total Assets

$

179,831

 

 

$

175,191

 

 

 

 

 

 

 

Liabilities

 

 

 

 

Policyholder account balances, future policy benefits and claims

$

38,667

 

 

$

37,545

 

 

Market risk benefits

 

1,335

 

 

 

1,762

 

 

Separate account liabilities

 

79,753

 

 

 

77,457

 

 

Customer deposits

 

36,982

 

 

 

37,321

 

 

Short-term borrowings

 

201

 

 

 

201

 

 

Long-term debt

 

3,398

 

 

 

3,399

 

 

Debt of consolidated investment entities

 

2,119

 

 

 

2,155

 

 

Accounts payable and accrued expenses

 

2,166

 

 

 

2,603

 

 

Other liabilities

 

10,275

 

 

 

7,974

 

 

Other liabilities of consolidated investment entities

 

56

 

 

 

45

 

 

Total Liabilities

 

174,952

 

 

 

170,462

 

 

 

 

 

 

 

Equity

 

 

 

 

Ameriprise Financial

 

 

 

 

Common shares ($.01 par)

 

3

 

 

 

3

 

 

Additional paid-in capital

 

9,924

 

 

 

9,824

 

 

Retained earnings

 

22,752

 

 

 

21,905

 

 

Treasury stock

 

(25,870

)

 

 

(25,237

)

 

Accumulated other comprehensive income, net of tax

 

(1,930

)

 

 

(1,766

)

 

Total Equity

 

4,879

 

 

 

4,729

 

 

Total Liabilities and Equity

$

179,831

 

 

$

175,191

 

 

 

 

 

 

 

Supplemental Non-GAAP Information:

 

 

 

 

Available Capital for Capital Adequacy

$

5,135

 

 

$

5,418

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

Reconciliation Table: Earnings

 

Quarter Ended March 31,

 

% Better/

(Worse)

 

Per Diluted Share

Quarter Ended

March 31,

 

% Better/

(Worse)

(in millions, except per share amounts, unaudited)

 

2024

 

 

 

2023

 

 

 

 

2024

 

 

 

2023

 

 

Net income

$

990

 

 

$

417

 

 

NM

 

$

9.46

 

 

$

3.79

 

 

NM

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Net realized investment gains (losses) (1)

 

 

 

 

3

 

 

 

 

 

 

 

 

0.03

 

 

 

Market impact on non-traditional long-duration products (1)

 

140

 

 

 

(475

)

 

 

 

 

1.34

 

 

 

(4.32

)

 

 

Integration/restructuring charges (1)

 

 

 

 

(10

)

 

 

 

 

 

 

 

(0.09

)

 

 

Net income (loss) attributable to consolidated investment entities

 

1

 

 

 

 

 

 

 

 

0.01

 

 

 

 

 

 

Tax effect of adjustments (2)

 

(29

)

 

 

101

 

 

 

 

 

(0.28

)

 

 

0.92

 

 

 

Adjusted operating earnings

$

878

 

 

$

798

 

 

10%

 

$

8.39

 

 

$

7.25

 

 

16%

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

102.8

 

 

 

107.9

 

 

 

 

 

 

 

 

 

Diluted

 

104.6

 

 

 

110.0

 

 

 

 

 

 

 

 

 

(1) Pretax adjusted operating adjustment.

(2) Calculated using the statutory tax rate of 21%.

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

 

Ameriprise Financial, Inc.

Reconciliation Table: Pretax Adjusted Operating Earnings

 

Quarter Ended March 31,

(in millions, unaudited)

 

2024

 

 

 

2023

 

Total net revenues

$

4,146

 

$

3,742

 

Adjustments:

 

 

Net realized investment gains (losses)

 

 

 

3

 

Market impact on non-traditional long-duration products

 

2

 

 

 

CIEs revenue

 

44

 

 

41

 

Adjusted operating total net revenues

$

4,100

 

$

3,698

 

 

 

 

Total expenses

$

2,927

 

$

3,246

 

Adjustments:

 

 

CIEs expenses

 

43

 

 

41

 

Integration/restructuring charges

 

 

 

10

 

Market impact on non-traditional long-duration products

 

(138

)

 

475

 

Adjusted operating expenses

$

3,022

 

$

2,720

 

 

 

 

Pretax income

$

1,219

 

$

496

 

Pretax adjusted operating earnings

$

1,078

 

$

978

 

 

 

 

Pretax income margin

 

29.4

%

 

13.3

%

Pretax adjusted operating margin

 

26.3

%

 

26.4

%

 

 

 

 

Ameriprise Financial, Inc.

Reconciliation Table: Available Capital for Capital Adequacy

(in millions, unaudited)

March 31,

2024

 

March 31,

2023

 

December 31,

2023

Ameriprise Financial GAAP Equity

$

4,879

 

 

$

4,144

 

 

$

4,729

 

Less: AOCI

 

(1,930

)

 

 

(1,985

)

 

 

(1,766

)

Ameriprise Financial GAAP Equity, excl AOCI

 

6,809

 

 

 

6,129

 

 

 

6,495

 

Less: RiverSource Life Insurance Co. GAAP Equity, excluding AOCI

 

2,017

 

 

 

1,667

 

 

 

1,851

 

Add: RiverSource Life Insurance Co. statutory total adjusted capital

 

2,637

 

 

 

3,108

 

 

 

3,093

 

Less: Goodwill and intangibles

 

2,603

 

 

 

2,497

 

 

 

2,622

 

Add: Other adjustments

 

309

 

 

 

304

 

 

 

303

 

Available Capital for Capital Adequacy

$

5,135

 

 

$

5,377

 

 

$

5,418

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

Reconciliation Table: Effective Tax Rate

 

Quarter Ended

March 31, 2023

(in millions, unaudited)

GAAP

Adjusted Operating

Pretax income

$

496

 

$

978

 

Income tax provision

$

79

 

$

180

 

 

 

 

Effective tax rate

 

15.9

%

 

18.4

%

 

 

 

 

Ameriprise Financial, Inc.

Reconciliation Table: Effective Tax Rate

 

Quarter Ended

March 31, 2024

(in millions, unaudited)

GAAP

Adjusted Operating

Pretax income

$

1,219

 

$

1,078

 

Income tax provision

$

229

 

$

200

 

 

 

 

Effective tax rate

 

18.8

%

 

18.6

%

 

 

 

 

Ameriprise Financial, Inc.

Reconciliation Table: Asset Management General and Administrative Expense

 

Quarter Ended March 31,

 

% Better/

(Worse)

(in millions, unaudited)

 

2024

 

 

 

2023

 

 

Total G&A Expense

$

403

 

$

401

 

-

Less: Impact of performance fee compensation

 

11

 

 

 

2

 

 

 

Less: Impact of foreign exchange translation

 

4

 

 

 

 

 

 

Total G&A Expense excluding impact of performance fee compensation and foreign exchange translation

$

388

 

 

$

399

 

 

3%

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

Reconciliation Table: Return on Equity (ROE) Excluding Accumulated

Other Comprehensive Income “AOCI”

 

Twelve Months Ended

March 31,

(in millions, unaudited)

 

2024

 

 

 

2023

 

Net income

$

3,129

 

$

2,741

 

Less: Adjustments (1)

 

(62

)

 

(266

)

Adjusted operating earnings

$

3,191

 

$

3,007

 

 

 

 

Total Ameriprise Financial, Inc. shareholders’ equity

$

4,331

 

$

4,032

 

Less: Accumulated other comprehensive income, net of tax

 

(2,174

)

 

(2,037

)

Total Ameriprise Financial, Inc. shareholders’ equity excluding AOCI

 

6,505

 

 

6,069

 

Less: Equity impacts attributable to the consolidated investment entities

 

(4

)

 

(1

)

Adjusted operating equity

$

6,509

 

$

6,070

 

 

 

 

Return on equity excluding AOCI

 

48.1

%

 

45.2

%

Adjusted operating return on equity excluding AOCI (2)

 

49.0

%

 

49.5

%

 

 

 

(1) Adjustments reflect the sum of after-tax net realized investment gains/losses, net of the reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and related reinsurance accrual; mean reversion related impacts; block transfer reinsurance transaction impacts; the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments; gain or loss on disposal of a business that is not considered discontinued operations; integration and restructuring charges; income (loss) from discontinued operations; and net income (loss) from consolidated investment entities. After-tax is calculated using the statutory tax rate of 21%.

(2) Adjusted operating return on equity, excluding AOCI is calculated using adjusted operating earnings in the numerator, and Ameriprise Financial shareholders’ equity, excluding AOCI and the impact of consolidating investment entities using a five-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory tax rate of 21%.

 

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