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Ameriprise Financial Reports Third Quarter 2023 Results

Ameriprise Financial, Inc. (NYSE: AMP):

Earnings Per Diluted Share

 

Return on Equity, ex AOCI (1)

 

Q3 2023

 

 

Q3 2023

GAAP

$8.14

 

GAAP

44.4%

Adjusted Operating

$6.96

 

Adjusted Operating

48.4%

Adjusted Operating ex Unlocking (2)

$7.68

 

Adjusted Operating ex Unlocking (2)

49.6%

 

 

 

 

 

  • 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.

 

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

(2) Unlocking impacts reflect the company’s annual review of insurance and annuity valuation assumptions and model changes.

 

Ameriprise Financial, Inc.

Third Quarter Summary

 

Quarter Ended September 30,

% Better/

(Worse)

 

Year-to-date

September 30,

% Better/

(Worse)

(in millions, except per share amounts, unaudited)

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. 27)

$

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current quarter GAAP results included after-tax net realized investment losses of $30 million primarily from continued investment portfolio repositioning to capture the benefit of higher interest rates and $9 million of integration costs, primarily related to the acquisition of BMO EMEA. In October, the company accomplished a major milestone in the BMO integration with the completion of the order management system platform conversion.

The company completed its annual actuarial assumption update in the quarter, which resulted in an unfavorable after-tax impact of $78 million or $0.72 per share. This was primarily related to updated persistency assumptions for variable annuities.

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%

 

 

 

 

 

Advice & Wealth Management pretax adjusted operating earnings were strong at $729 million, up 23 percent. Results included a $20 million accrual for an industry-wide regulatory matter relating to electronic communication recordkeeping requirements. Excluding the accrual, pretax adjusted operating earnings increased 26 percent with a pretax adjusted operating margin of 31.1 percent.

Adjusted operating net revenues increased 13 percent to $2.4 billion from continued growth in client assets in both wrap and brokerage accounts, as well as higher investment earnings from cash products, which is expected to remain a sustainable driver of revenue going forward.

Adjusted operating expenses increased 9 percent to $1.7 billion compared to a year ago. Distribution expenses increased 9 percent. General and administrative expense was $419 million and included the regulatory accrual. Excluding the accrual, general and administrative expense was $399 million, up 2 percent and the company continues to expect mid-single-digit growth for the full year.

The Wealth Management business delivered continued balanced profitable organic growth. Clients and advisors remained engaged and focused on positioning portfolios to meet financial planning goals through the market cycle. Clients remain heavily concentrated in yield-oriented products and have not begun putting cash back to work given the current environment.

  • Total client net flows were $9 billion in the quarter and were $43 billion over the past year.
  • Bank and certificate assets grew 37 percent year-over-year to $35 billion, and cash sorting slowed throughout the quarter.
  • Advisor headcount was 10,258, reflecting good advisor retention coupled with the addition of 64 experienced advisors in the quarter.
  • Adjusted operating net revenue per advisor on a trailing 12-month basis was $901,000, up 10 percent from enhanced productivity, business growth and market appreciation.

 

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 12.

 

 

 

 

 

(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 were $826 million and pretax adjusted operating earnings were $199 million, up 4 percent in a challenging environment. Financial results reflected equity market appreciation, disciplined expense management and $7 million of favorable timing-related items, which more than offset the cumulative impact of net outflows. Net pretax adjusted operating margin was 36 percent and above the company’s targeted range of 31 to 35 percent.

Adjusted operating expenses decreased 1 percent, with general and administrative expenses down $1 million. The company has begun implementing more comprehensive expense management initiatives in light of the environment and its objective to improve the margin. Excluding the impact of foreign exchange translation, general and administrative expenses were down 3 percent.

Total assets under management increased 7 percent to $587 billion as equity market appreciation and foreign exchange translation were partially offset by net outflows. The fee rate remained stable on a sequential basis. Long term 3-, 5- and 10-year investment performance remained strong and there was notable improvement in 1-year fixed income performance.

In the quarter, net outflows were $4.2 billion reflecting the challenging market environment. Flows included $0.9 billion of outflows related to legacy insurance partners.

  • Retail net outflows were $3.8 billion reflecting continued weak gross sales consistent with the industry that were partially offset by a significant improvement in redemptions.
  • Global institutional inflows were $0.5 billion with fundings primarily in liability-driven investment and emerging market equity mandates.

 

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%

Retirement & Protection Solutions pretax adjusted operating earnings excluding unlocking were $204 million versus $197 million last year, with strong sales growth. The business continued to generate strong free cash flow and a high return on capital.

Retirement & Protection Solutions sales improved in the quarter, with protection sales up 22 percent to $79 million primarily in higher-margin VUL products. Variable annuity sales grew 18 percent to $1.1 billion with the majority of sales in structured variable annuities.

 

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%

Total Corporate & Other pretax adjusted operating loss was $72 million.

Corporate & Other, excluding Closed Blocks, pretax adjusted operating loss was $74 million, which was in line with the prior year period. The loss included $7 million of severance expense related to the company’s expense management initiatives and are designed to improve operating efficiency and effectiveness, which commenced in the quarter.

Long Term Care pretax adjusted operating earnings excluding unlocking were in line with expectations at $5 million.

Fixed Annuities pretax adjusted operating loss was in line with expectations at $8 million.

Taxes

The operating effective tax rate increased to 22.1 percent for the third quarter and 20.5 percent on a year-to-date basis. Excluding the impact from the regulatory accrual, the operating effective tax rate in the quarter was 21.6 percent. The effective tax rate is expected to be at the higher end of the 20 to 21 percent range for the full year.

About Ameriprise Financial

At Ameriprise Financial, we have been helping people feel confident about their financial future for 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 about the closing date of the partnership with Comerica;
  • statements about higher investment earnings from cash product being a sustainable driver of revenue going forward;
  • statements regarding general and administrative expenses in Advice & Wealth Management;
  • statements estimating full year 2023 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, 2022 available at ir.ameriprise.com. Management undertakes no obligation to update publicly or revise any forward-looking statements.

The financial results discussed in this news release represent past performance only, which may not be used to predict or project future results. The financial results and values presented in this news release are based upon asset valuations that represent estimates as of the date of this news release and may be revised in the company’s Form 10-Q for the period ended September 30, 2023.

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

 

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 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:

 

 

 

 

 

 

 

 

Advisory fees

$

1,228

 

$

1,107

 

11%

$

1,154

 

6%

Financial planning fees

 

102

 

 

97

 

5%

 

104

 

(2)%

Transaction and other fees

 

94

 

 

93

 

1%

 

96

 

(2)%

Total management and financial advice fees

 

1,424

 

 

1,297

 

10%

 

1,354

 

5%

Distribution fees:

 

 

 

 

 

 

 

 

Mutual funds

 

184

 

 

180

 

2%

 

179

 

3%

Insurance and annuity

 

226

 

 

205

 

10%

 

222

 

2%

Off-Balance sheet brokerage cash

 

58

 

 

110

 

(47)%

 

84

 

(31)%

Other products

 

84

 

 

84

 

-

 

84

 

-

Total distribution fees

 

552

 

 

579

 

(5)%

 

569

 

(3)%

Net investment income

 

517

 

 

219

 

NM

 

483

 

7%

Other revenues

 

65

 

 

57

 

14%

 

68

 

(4)%

Total revenues

 

2,558

 

 

2,152

 

19%

 

2,474

 

3%

Banking and deposit interest expense

 

151

 

 

15

 

NM

 

131

 

(15)%

Adjusted operating total net revenues

 

2,407

 

 

2,137

 

13%

 

2,343

 

3%

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

Distribution expenses

 

1,253

 

 

1,149

 

(9)%

 

1,196

 

(5)%

Interest and debt expense

 

6

 

 

3

 

NM

 

6

 

-

General and administrative expense

 

419

 

 

390

 

(7)%

 

410

 

(2)%

Adjusted operating expenses

 

1,678

 

 

1,542

 

(9)%

 

1,612

 

(4)%

Pretax adjusted operating earnings

$

729

 

$

595

 

23%

$

731

 

-

 

 

 

 

 

 

 

 

 

Pretax adjusted operating margin

 

30.3

%

 

27.8

%

 

 

31.2

%

 

 

 

 

 

 

 

 

 

 

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

 

-

 

 

 

 

 

 

 

 

 

Advisor Retention

 

 

 

 

 

 

 

 

Employee

 

92.2

 

%

 

91.9

 

%

 

 

92.0

%

 

Franchisee

 

92.8

 

%

 

94.4

 

%

 

 

93.0

%

 

 

 

 

 

 

 

 

 

 

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

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

 

Ameriprise Financial, Inc.

Asset Management Segment Adjusted Operating Results

(in millions, unaudited)

3 Qtr 2023

3 Qtr 2022

% Better/

(Worse)

2 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

 

 

 

Asset management fees:

 

 

 

 

 

 

 

 

Retail

$

499

 

 

$

509

 

 

(2)%

$

490

 

 

2%

Institutional

 

165

 

 

 

159

 

 

4%

 

157

 

 

5%

Transaction and other fees

 

50

 

 

 

51

 

 

(2)%

 

48

 

 

4%

Revenue from other sources (1)

 

3

 

 

 

4

 

 

(25)%

 

4

 

 

(25)%

Total management and financial advice fees

 

717

 

 

 

723

 

 

(1)%

 

699

 

 

3%

Distribution fees:

 

 

 

 

 

 

 

 

Mutual funds

 

53

 

 

 

56

 

 

(5)%

 

51

 

 

4%

Insurance and annuity

 

39

 

 

 

40

 

 

(3)%

 

39

 

 

-

Total distribution fees

 

92

 

 

 

96

 

 

(4)%

 

90

 

 

2%

Net investment income

 

10

 

 

 

2

 

 

NM

 

10

 

 

-

Other revenues

 

7

 

 

 

2

 

 

NM

 

9

 

 

(22)%

Total revenues

 

826

 

 

 

823

 

 

-

 

808

 

 

2%

Banking and deposit interest expense

 

 

 

 

 

 

-

 

 

 

-

Adjusted operating total net revenues

 

826

 

 

 

823

 

 

-

 

808

 

 

2%

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

Distribution expenses

 

234

 

 

 

238

 

 

2%

 

233

 

 

-

Amortization of deferred acquisition costs

 

1

 

 

 

2

 

 

50%

 

2

 

 

50%

Interest and debt expense

 

2

 

 

 

1

 

 

NM

 

1

 

 

NM

General and administrative expense

 

390

 

 

 

391

 

 

-

 

410

 

 

5%

Adjusted operating expenses

 

627

 

 

 

632

 

 

1%

 

646

 

 

3%

Pretax adjusted operating earnings

$

199

 

 

$

191

 

 

4%

$

162

 

 

23%

 

 

 

 

 

 

 

 

 

Net Pretax Adjusted Operating Margin Reconciliation

 

 

 

 

 

 

 

Adjusted operating total net revenues

$

826

 

 

$

823

 

 

-

$

808

 

 

2%

Distribution pass through revenues

 

(186

)

 

 

(187

)

 

1%

 

(183

)

 

(2)%

Subadvisory and other pass through revenues

 

(96

)

 

 

(91

)

 

(5)%

 

(95

)

 

(1)%

Net adjusted operating revenues

$

544

 

 

$

545

 

 

-

$

530

 

 

3%

 

 

 

 

 

 

 

 

 

Pretax adjusted operating earnings

$

199

 

 

$

191

 

 

4%

$

162

 

 

23%

Adjusted operating net investment income

 

(10

)

 

 

(2

)

 

NM

 

(10

)

 

-

Amortization of intangibles

 

5

 

 

 

5

 

 

-

 

6

 

 

(17)%

Net adjusted operating earnings

$

194

 

 

$

194

 

 

-

$

158

 

 

23%

 

 

 

 

 

 

 

 

 

Pretax adjusted operating margin

 

24.1

 

%

 

23.2

 

%

 

 

20.0

 

%

 

Net pretax adjusted operating margin (2)

 

35.7

 

%

 

35.6

 

%

 

 

29.8

 

%

 

 

 

 

 

 

 

 

 

 

Performance fees (3)

 

 

 

 

 

 

 

 

Performance fees

$

7

 

 

$

1

 

 

NM

$

1

 

 

NM

General and administrative expense related to performance fees

 

1

 

 

 

 

 

-

 

1

 

 

-

Net performance fees

$

6

 

 

$

1

 

 

NM

$

 

 

-

 

 

 

 

 

 

 

 

 

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

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

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

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

 

 

Ameriprise Financial, Inc.

Asset Management Segment Operating Metrics

(in millions, unaudited)

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%

Model delivery AUA flows (5)

$

213

 

 

$

(542

)

 

NM

$

488

 

 

(56)%

 

 

 

 

 

 

 

 

 

(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)

3 Qtr 2023

3 Qtr 2022

% Better/

(Worse)

2 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

Total Managed Assets by Type

 

 

 

 

 

 

 

 

Equity

$

299,078

 

$

278,446

 

7%

$

316,092

 

(5)%

Fixed income

 

214,839

 

 

194,643

 

10%

 

225,520

 

(5)%

Money market

 

22,719

 

 

21,261

 

7%

 

22,439

 

1%

Alternative

 

33,602

 

 

35,238

 

(5)%

 

35,088

 

(4)%

Hybrid and other

 

16,933

 

 

16,905

 

-

 

17,459

 

(3)%

Total managed assets by type

$

587,171

 

$

546,493

 

7%

$

616,598

 

(5)%

 

 

 

 

 

 

 

 

 

Average Managed Assets by Type (1)

 

 

 

 

 

 

 

 

Equity

$

313,909

 

$

305,078

 

3%

$

309,576

 

1%

Fixed income

 

222,745

 

 

214,305

 

4%

 

223,766

 

-

Money market

 

22,583

 

 

18,499

 

22%

 

22,945

 

(2)%

Alternative

 

34,797

 

 

36,962

 

(6)%

 

34,888

 

-

Hybrid and other

 

17,533

 

 

18,417

 

(5)%

 

17,152

 

2%

Total average managed assets by type

$

611,567

 

$

593,261

 

3%

$

608,327

 

1%

 

 

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Asset Management Segment Performance Metrics

 

3 Qtr 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.

Retirement & Protection Solutions Segment 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

$

186

 

 

$

189

 

(2)%

$

185

 

1%

Distribution fees

 

101

 

 

 

101

 

-

 

100

 

1%

Net investment income

 

215

 

 

 

151

 

42%

 

203

 

6%

Premiums, policy and contract charges

 

372

 

 

 

339

 

10%

 

368

 

1%

Other revenues

 

2

 

 

 

3

 

(33)%

 

2

 

-

Total revenues

 

876

 

 

 

783

 

12%

 

858

 

2%

Banking and deposit interest expense

 

 

 

 

 

-

 

 

-

Adjusted operating total net revenues

 

876

 

 

 

783

 

12%

 

858

 

2%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

117

 

 

 

106

 

(10)%

 

120

 

3%

Interest credited to fixed accounts

 

94

 

 

 

97

 

3%

 

94

 

-

Benefits, claims, losses and settlement expenses

 

168

 

 

 

113

 

(49)%

 

188

 

11%

Remeasurement (gains) losses of future policy benefit reserves

 

(10

)

 

 

5

 

NM

 

(4

)

NM

Change in fair value of market risk benefits

 

259

 

 

 

(11

)

NM

 

123

 

NM

Amortization of deferred acquisition costs

 

57

 

 

 

56

 

(2)%

 

57

 

-

Interest and debt expense

 

12

 

 

 

10

 

(20)%

 

12

 

-

General and administrative expense

 

79

 

 

 

82

 

4%

 

79

 

-

Adjusted operating expenses

 

776

 

 

 

458

 

(69)%

 

669

 

(16)%

Pretax adjusted operating earnings

$

100

 

 

$

325

 

(69)%

$

189

 

(47)%

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Retirement & Protection Solutions Segment Operating Metrics

(in millions, unaudited)

3 Qtr 2023

 

3 Qtr 2022

% Better/

(Worse)

2 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

Variable Annuities Rollforwards

 

 

 

 

 

 

Beginning balance

$

78,549

 

 

$

75,687

 

4%

$

76,809

 

2%

Deposit

 

1,087

 

 

 

923

 

18%

 

940

 

16%

Withdrawals and terminations

 

(1,736

)

 

 

(1,419

)

(22)%

 

(1,712

)

(1)%

Net flows

 

(649

)

 

 

(496

)

(31)%

 

(772

)

16%

Investment performance and interest credited

 

(2,816

)

 

 

(3,929

)

28%

 

2,512

 

NM

Total ending balance - contract accumulation values

$

75,084

 

 

$

71,262

 

5%

$

78,549

 

(4)%

 

 

 

 

 

 

 

Variable annuities fixed sub-accounts

$

4,395

 

 

$

4,887

 

(10)%

$

4,524

 

(3)%

 

 

 

 

 

 

 

Life Insurance In Force

$

198,527

 

 

$

198,510

 

-

$

198,686

 

-

 

 

 

 

 

 

 

Net Amount at Risk (Life)

$

37,917

 

 

$

39,400

 

(4)%

$

37,708

 

1%

 

 

 

 

 

 

 

Net Policyholder Reserves

 

 

 

 

 

 

VUL/UL

$

13,814

 

 

$

12,718

 

9%

$

14,170

 

(3)%

Term and whole life

 

175

 

 

 

192

 

(9)%

 

188

 

(7)%

Disability insurance

 

500

 

 

 

531

 

(6)%

 

539

 

(7)%

Other insurance

 

542

 

 

 

565

 

(4)%

 

548

 

(1)%

Total net policyholder reserves

$

15,031

 

 

$

14,006

 

7%

$

15,445

 

(3)%

 

 

 

 

 

 

 

DAC Ending Balances

 

 

 

 

 

 

Variable Annuities DAC

$

1,713

 

 

$

1,758

 

(3)%

$

1,722

 

(1)%

Life and Health DAC

$

963

 

 

$

980

 

(2)%

$

964

 

-

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Corporate Segment Adjusted Operating Results and Metrics

(in millions, unaudited)

3 Qtr 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.

Corporate Segment Adjusted Operating Results and Metrics

(in millions, unaudited)

3 Qtr 2023

 

3 Qtr 2022

% Better/

(Worse)

2 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

Long Term Care Adjusted Operating Income Statements

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

 

 

$

 

-

$

 

-

Distribution fees

 

 

 

 

 

-

 

 

-

Net investment income

 

46

 

 

 

38

 

21%

 

44

 

5%

Premiums, policy and contract charges

 

25

 

 

 

25

 

-

 

23

 

9%

Other revenues

 

 

 

 

 

-

 

 

-

Total revenues

 

71

 

 

 

63

 

13%

 

67

 

6%

Banking and deposit interest expense

 

 

 

 

 

-

 

 

-

Adjusted operating total net revenues

 

71

 

 

 

63

 

13%

 

67

 

6%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

(3

)

 

 

(3

)

-

 

(2

)

50%

Interest credited to fixed accounts

 

 

 

 

 

-

 

 

-

Benefits, claims, losses and settlement expenses

 

58

 

 

 

65

 

11%

 

58

 

-

Remeasurement (gains) losses of future policy benefit reserves

 

(2

)

 

 

(6

)

(67)%

 

4

 

NM

Change in fair value of market risk benefits

 

 

 

 

 

-

 

 

-

Amortization of deferred acquisition costs

 

 

 

 

 

-

 

 

-

Interest and debt expense

 

1

 

 

 

3

 

67%

 

1

 

-

General and administrative expense

 

7

 

 

 

4

 

(75)%

 

5

 

(40)%

Adjusted operating expenses

 

61

 

 

 

63

 

3%

 

66

 

8%

Pretax adjusted operating earnings (loss)

$

10

 

 

$

 

-

$

1

 

NM

 

 

 

 

 

 

 

Long Term Care Policyholder Reserves, net of reinsurance

$

2,456

 

 

$

2,496

 

(2)%

$

2,616

 

(6)%

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Corporate Segment Adjusted Operating Results and Metrics

(in millions, unaudited)

3 Qtr 2023

3 Qtr 2022

% Better/

(Worse)

2 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

Fixed Annuities Adjusted Operating Income Statements

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

Management and financial advice fees

$

 

 

$

 

 

-

$

 

 

-

Distribution fees

 

1

 

 

 

 

 

-

 

 

 

-

Net investment income

 

8

 

 

 

8

 

 

-

 

8

 

 

-

Premiums, policy and contract charges

 

 

 

 

 

 

-

 

 

 

-

Other revenues

 

50

 

 

 

55

 

 

(9)%

 

52

 

 

(4)%

Total revenues

 

59

 

 

 

63

 

 

(6)%

 

60

 

 

(2)%

Banking and deposit interest expense

 

 

 

 

 

 

-

 

 

 

-

Adjusted operating total net revenues

 

59

 

 

 

63

 

 

(6)%

 

60

 

 

(2)%

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

1

 

 

NM

 

 

 

-

Interest credited to fixed accounts

 

59

 

 

 

61

 

 

3%

 

57

 

 

(4)%

Benefits, claims, losses and settlement expenses

 

1

 

 

 

2

 

 

50%

 

 

 

-

Remeasurement (gains) losses of future policy benefit reserves

 

 

 

 

 

 

-

 

 

 

-

Change in fair value of market risk benefits

 

 

 

 

 

 

-

 

 

 

-

Amortization of deferred acquisition costs

 

4

 

 

 

 

 

-

 

2

 

 

NM

Interest and debt expense

 

 

 

 

 

 

-

 

1

 

 

NM

General and administrative expense

 

3

 

 

 

4

 

 

25%

 

5

 

 

40%

Adjusted operating expenses

 

67

 

 

 

68

 

 

1%

 

65

 

 

(3)%

Pretax adjusted operating earnings (loss)

$

(8

)

 

$

(5

)

 

(60)%

$

(5

)

 

(60)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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: Earnings

 

Year-to-date

September 30,

 

Per Diluted Share

Year-to-date

September 30,

 

% Better/

(Worse)

(in millions, except per share amounts, unaudited)

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

Net income

$

2,179

 

 

$

2,500

 

 

$

20.08

 

 

$

21.85

 

 

(8)%

Adjustments:

 

 

 

 

 

 

 

 

 

Net realized investment gains (losses) (1)

 

(32

)

 

 

(86

)

 

 

(0.29

)

 

 

(0.75

)

 

 

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

 

(137

)

 

 

566

 

 

 

(1.27

)

 

 

4.95

 

 

 

Mean reversion-related impacts (1)

 

 

 

 

(3

)

 

 

 

 

 

(0.03

)

 

 

Integration/restructuring charges (1)

 

(47

)

 

 

(35

)

 

 

(0.43

)

 

 

(0.31

)

 

 

Net income (loss) attributable to consolidated investment entities

 

 

 

 

(2

)

 

 

 

 

 

(0.02

)

 

 

Tax effect of adjustments (2)

 

45