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Ameriprise Financial Reports Second Quarter 2024 Results

Ameriprise Financial, Inc. (NYSE:AMP):

Earnings Per Diluted Share

 

Return on Equity, ex AOCI (1)

 

Q2 2024

 

 

Q2 2024

GAAP

$8.02

 

GAAP

45.9%

Adjusted Operating

$8.53

 

Adjusted Operating

48.9%

Adjusted Operating, excluding severance expense

$8.72

 

 

 

 

 

 

 

 

  • Second quarter adjusted operating earnings per diluted share was $8.53. Adjusted operating EPS grew 17 percent to $8.72 excluding $0.19 of severance expense associated with the company’s initiatives to enhance operational efficiency and effectiveness.

 

Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer

 

“Ameriprise delivered another good quarter and a strong first half of the year.

 

Our financial results were excellent, reflecting robust revenue growth, ongoing expense discipline and effective capital management.

 

Client activity and flows into fee-based investment advisory accounts were up nicely as clients begin to put money back to work.

 

Ameriprise has a powerful and differentiated financial foundation. Our business generates significant free cash flow that we consistently invest in our capabilities, solutions, and people and return to shareholders. In the quarter, we committed $693 million to share repurchases and dividends, which is consistent with our plans, while still maintaining a strong excess capital position.

 

We’re positioned well as we move through the second half of the year, and I feel very good about our focus and how we’re executing. I’d highlight that Ameriprise celebrated our 130-year anniversary in June, joining a select number of firms with this legacy of success. It provided the opportunity for us to both reflect on our history of serving clients’ most important financial needs and our significant opportunity ahead.”

 

 

  • Second quarter GAAP net income per diluted share was $8.02 compared to $8.21 a year ago, primarily from market impacts on the valuation of derivatives and market risk benefits.

 

  • Assets under management and administration reached $1.4 trillion, up 12 percent from strong client net inflows and market appreciation.

 

  • Adjusted operating net revenues increased 9 percent from organic growth, strong equity markets and higher spread revenues.

 

  • General and administrative expenses were flat to a year ago demonstrating our continued focus on operational efficiency and effectiveness.

 

  • Pretax adjusted operating margin was 26.8 percent and adjusted operating return on equity was 48.9 percent.

 

  • The company returned $693 million of capital to shareholders in the quarter, demonstrating its balance sheet strength and strong free cash flow generation.

 

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

Ameriprise Financial, Inc.

Second Quarter Summary

 

 

Quarter Ended

June 30,

 

%

Better/

(Worse)

 

Year-to-date

June 30,

 

%

Better/

(Worse)

(in millions, except per share amounts, unaudited)

 

2024

 

2023

 

 

2024

 

2023

 

GAAP net income

 

$

829

 

 

$

890

 

 

(7

)%

 

$

1,819

 

 

$

1,307

 

 

39

%

Adjusted operating earnings

 

$

882

 

 

$

807

 

 

9

%

 

$

1,760

 

 

$

1,605

 

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income per diluted share

 

$

8.02

 

 

$

8.21

 

 

(2

)%

 

$

17.49

 

 

$

11.97

 

 

46

%

Adjusted operating earnings per diluted share

 

$

8.53

 

 

$

7.44

 

 

15

%

 

$

16.92

 

 

$

14.70

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Return on Equity, ex. AOCI

 

 

45.9

%

 

 

48.6

%

 

 

 

 

45.9

%

 

 

48.6

%

 

 

Adjusted Operating Return on Equity, ex. AOCI

 

 

48.9

%

 

 

50.9

%

 

 

 

 

48.9

%

 

 

50.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Equity, ex. AOCI

 

$

6,986

 

 

$

6,429

 

 

9

%

 

$

6,986

 

 

$

6,429

 

 

9

%

Available Capital for Capital Adequacy

(see reconciliation on p. 26)

 

$

5,245

 

 

$

5,011

 

 

5

%

 

$

5,245

 

 

$

5,011

 

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

101.6

 

 

 

106.4

 

 

 

 

 

102.2

 

 

 

107.1

 

 

Diluted

 

 

103.4

 

 

 

108.4

 

 

 

 

 

104.0

 

 

 

109.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

In addition, adjusted operating after-tax results included severance expense of $20 million in the second quarter of 2024 and $24 million in the first half of 2024. These actions were associated with the company’s initiatives to enhance operational efficiency and effectiveness that are expected to drive future profitability.

Ameriprise Financial, Inc.

Advice & Wealth Management Segment Adjusted Operating Results

 

 

Quarter Ended June 30,

% Better/

(Worse)

(in millions, unaudited)

 

2024

 

2023

 

Adjusted operating net revenues

 

$

2,644

 

$

2,343

 

13

%

 

 

 

 

 

 

 

Distribution expenses

 

 

1,403

 

 

1,196

 

(17

)%

Interest and debt expense

 

 

10

 

 

6

 

(67

)%

General and administrative expenses

 

 

409

 

 

410

 

%

Adjusted operating expenses

 

 

1,822

 

 

1,612

 

(13

)%

Pretax adjusted operating earnings

 

$

822

 

$

731

 

12

%

 

 

 

 

 

 

 

Pretax adjusted operating margin

 

 

31.1

%

 

31.2

%

(10) bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended June 30,

% Better/

(Worse)

 

(in billions, unless otherwise noted)

 

 

2024

 

 

2023

 

Total client assets

 

$

972

 

$

833

17

%

 

Total client net flows

 

$

6.6

 

$

9.4

(30

)%

 

Wrap net flows

 

$

7.5

 

$

5.6

34

%

 

AWM cash balances

 

$

40.6

 

$

42.0

(3

)%

 

Adjusted operating net revenue per advisor (TTM in thousands)

 

$

968

 

$

874

11

%

 

 

 

 

 

 

 

 

Advice & Wealth Management continued to demonstrate consistent profitable organic growth with pretax adjusted operating earnings reaching a new high of $822 million and margins remaining above 31 percent driven by strong core wealth management and banking performance.

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 11 percent growth in bank net investment income.

Adjusted operating expenses increased 13 percent to $1.8 billion compared to a year ago, with general and administrative expense very well managed and flat to a year ago at $409 million.

Clients and advisors remained engaged and focused on positioning portfolios to meet financial planning goals across market cycles.

  • Total client assets grew 17 percent to $972 billion, with wrap assets up 18 percent to $535 billion.
  • Wrap flows improved in the quarter to $7.5 billion or a 6 percent annualized flow rate, an early indication of client preferences returning to advisory products.
  • Transactional activity increased 19 percent with strong growth across all product areas.
  • Total client cash including third-party money market funds and brokered CDs was $81.9 billion, up $12.2 billion from a year ago, as clients remain heavily concentrated in yield-oriented products.
  • Cash balances were $40.6 billion. Underlying cash sweep excluding normal seasonal tax payments and cash related to the recent partnership with Comerica transitioning into other products was stable and consistent with expectations.
  • Adjusted operating net revenue per advisor on a trailing 12-month basis was $968,000, up 11 percent from enhanced productivity, business growth and market appreciation.
  • Advisor headcount increased to 10,392, which reflects the addition of 52 experienced advisors in the quarter and continued strong advisor retention.

Ameriprise Financial, Inc.

Asset Management Segment Adjusted Operating Results

 

 

Quarter Ended June 30,

% Better/

(Worse)

(in millions, unaudited)

 

2024

 

2023

 

Adjusted operating net revenues

 

$

848

 

 

$

808

 

 

5

%

 

 

 

 

 

 

 

Distribution expenses

 

 

244

 

 

 

233

 

 

(5

)%

Amortization of deferred acquisition costs

 

 

1

 

 

 

2

 

 

50

%

Interest and debt expense

 

 

1

 

 

 

1

 

 

%

General and administrative expenses

 

 

384

 

 

 

410

 

 

6

%

Adjusted operating expenses

 

 

630

 

 

 

646

 

 

2

%

Pretax adjusted operating earnings

 

$

218

 

 

$

162

 

 

35

%

 

 

 

 

 

 

 

Net pretax adjusted operating margin (1)

 

 

37.6

 

%

 

29.8

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended June 30,

% Better/

(Worse)

(in billions)

 

2024

 

2023

 

Total segment AUM

 

$

642

 

 

$

617

 

 

4

%

 

 

 

 

 

 

 

Net Flows

 

 

 

 

 

 

Global Retail net flows, ex. legacy insurance partners flows

 

$

(3.2

)

 

$

(4.7

)

 

32

%

Global Institutional net flows, ex. legacy insurance partners flows

 

 

0.3

 

 

 

0.8

 

 

(71

)%

Legacy insurance partners flows (2)

 

 

(9.1

)

 

 

(1.4

)

 

NM

 

Total segment net flows (2)

 

$

(12.0

)

 

$

(5.3

)

 

NM

 

 

 

 

 

 

 

 

Model delivery AUA Flows (3)

 

$

0.9

 

 

$

0.5

 

 

89

%

 

 

 

 

 

 

 

(1) See reconciliation on page 13.

 

 

 

 

 

 

(2) In Q2 2024, total segment net outflows were $4.0 billion and legacy insurance partner outflows were $1.1 billion, excluding the $8.0 billion previously announced asset transfer related to a legacy insurance partner.

(3) 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 5 percent to $848 million and pretax adjusted operating earnings increased 35 percent to $218 million. Financial results reflected equity market appreciation and the positive impact from expense management actions, which more than offset the cumulative impact of net outflows. Net pretax adjusted operating margin was 38 percent and above our targeted range, reflecting strong market appreciation and expense discipline.

Adjusted operating expenses decreased 2 percent, with general and administrative expenses down 6 percent from a year ago, reflecting the ongoing benefits from the company’s initiatives to enhance operational efficiency and effectiveness.

Total assets under management increased 4 percent to $642 billion as equity market appreciation more than offset net outflows. The underlying fee rate remained stable at 46 basis points.

Net outflows would have been $4.0 billion excluding an $8.0 billion previously announced asset transfer related to a legacy insurance partner, which was a $1.3 billion improvement from a year ago.

  • Retail net outflows were $3.2 billion, representing a $1.5 billion improvement from the prior year from stronger gross sales globally and lower redemptions in the US.
  • Global institutional inflows were $0.3 billion.

Ameriprise Financial, Inc.

Retirement & Protection Solutions Segment Adjusted Operating Results

 

Quarter Ended June 30,

% Better/

(Worse)

(in millions, unaudited)

2024

 

2023

Adjusted operating net revenues

$

928

 

$

858

8

%

Adjusted operating expenses

 

732

 

 

669

(9

)%

Pretax adjusted operating earnings

$

196

 

$

189

4

%

 

 

 

 

 

Retirement & Protection Solutions pretax adjusted operating earnings increased 4 percent to $196 million, reflecting the benefit of stronger interest earnings and higher equity markets partially offset by higher distribution expenses associated with continued strong 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 40 percent to $1.5 billion primarily from strong sales growth in structured variable annuities similar to the industry. Protection sales grew 21 percent to $93 million with the majority of sales in higher margin accumulation VUL products.

Ameriprise Financial, Inc.

Corporate & Other Segment Adjusted Operating Results

 

Quarter Ended June 30,

% Better/

(Worse)

(in millions, unaudited)

2024

 

2023

Corporate & Other, excluding Closed Blocks

$

(123

)

 

$

(56

)

NM

 

Closed Blocks (1)

 

4

 

 

 

(4

)

NM

 

Pretax adjusted operating earnings / (loss)

$

(119

)

 

$

(60

)

(98

)%

 

 

 

 

 

Long Term Care

$

12

 

 

$

1

 

NM

 

Fixed Annuities

 

(8

)

 

 

(5

)

(60

)%

Closed Blocks pretax adjusted operating earnings / (loss)

$

4

 

 

$

(4

)

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 $123 million, which included $25 million of severance expense, as well as $8 million of severance program expenses, both of which were associated with the company’s initiatives to enhance operational efficiency and effectiveness.

Long Term Care pretax adjusted operating earnings increased to $12 million from improved investment yields and claims performance.

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

Taxes

The operating effective tax rate was 21.0 percent. 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 130 years. With extensive investment advice, global asset management capabilities and insurance solutions, and a nationwide network of more than 10,000 financial advisors, we have the strength and expertise to serve the full range of individual and institutional investors' financial needs.

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, 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 the financial impacts and future profitability arising from the company’s reengineering initiatives;
  • 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 June 30, 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.

Ameriprise Financial, Inc.

Consolidated GAAP Results

(in millions, except per share amounts, unaudited)

 

2 Qtr 2024

 

2 Qtr 2023

 

% Better/

(Worse)

 

1 Qtr 2024

 

% Better/

(Worse)

Revenues

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

2,456

 

 

$

2,199

 

 

12

%

 

$

2,399

 

 

2

%

Distribution fees

 

 

505

 

 

 

482

 

 

5

%

 

 

506

 

 

%

Net investment income

 

 

921

 

 

 

811

 

 

14

%

 

 

901

 

 

2

%

Premiums, policy and contract charges

 

 

381

 

 

 

383

 

 

(1

)%

 

 

390

 

 

(2

)%

Other revenues

 

 

129

 

 

 

132

 

 

(2

)%

 

 

129

 

 

%

Total revenues

 

 

4,392

 

 

 

4,007

 

 

10

%

 

 

4,325

 

 

2

%

Banking and deposit interest expense

 

 

172

 

 

 

131

 

 

(31

)%

 

 

179

 

 

4

%

Total net revenues

 

 

4,220

 

 

 

3,876

 

 

9

%

 

 

4,146

 

 

2

%

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

1,450

 

 

 

1,248

 

 

(16

)%

 

 

1,419

 

 

(2

)%

Interest credited to fixed accounts

 

 

185

 

 

 

161

 

 

(15

)%

 

 

132

 

 

(40

)%

Benefits, claims, losses and settlement expenses

 

 

331

 

 

 

327

 

 

(1

)%

 

 

295

 

 

(12

)%

Remeasurement (gains) losses of future policy benefit reserves

 

 

(8

)

 

 

 

 

%

 

 

(4

)

 

NM

 

Change in fair value of market risk benefits

 

 

110

 

 

 

(99

)

 

NM

 

 

 

(18

)

 

NM

 

Amortization of deferred acquisition costs

 

 

61

 

 

 

61

 

 

%

 

 

61

 

 

%

Interest and debt expense

 

 

83

 

 

 

84

 

 

1

%

 

 

82

 

 

(1

)%

General and administrative expense

 

 

957

 

 

 

967

 

 

1

%

 

 

960

 

 

%

Total expenses

 

 

3,169

 

 

 

2,749

 

 

(15

)%

 

 

2,927

 

 

(8

)%

Pretax income

 

 

1,051

 

 

 

1,127

 

 

(7

)%

 

 

1,219

 

 

(14

)%

Income tax provision

 

 

222

 

 

 

237

 

 

(6

)%

 

 

229

 

 

(3

)%

Net income

 

$

829

 

 

$

890

 

 

(7

)%

 

$

990

 

 

(16

)%

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

8.16

 

 

$

8.36

 

 

 

 

$

9.63

 

 

 

Earnings per diluted share

 

$

8.02

 

 

$

8.21

 

 

 

 

$

9.46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

Basic

 

 

101.6

 

 

 

106.4

 

 

 

 

 

102.8

 

 

 

Diluted

 

 

103.4

 

 

 

108.4

 

 

 

 

 

104.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Ameriprise Financial, Inc.

Consolidated Highlights and Capital Summary

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2024

 

2 Qtr 2023

 

% Better/

(Worse)

 

1 Qtr 2024

 

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

 

 

Assets Under Management and Administration

 

 

 

 

 

 

 

 

Advice & Wealth Management AUM

 

$

531,268

 

 

$

451,249

 

 

18

%

 

$

518,080

 

 

3

%

Asset Management AUM

 

 

641,880

 

 

 

616,598

 

 

4

%

 

 

652,077

 

 

(2

)%

Corporate AUM

 

 

490

 

 

 

297

 

 

65

%

 

 

429

 

 

14

%

Eliminations

 

 

(44,136

)

 

 

(39,308

)

 

(12

)%

 

 

(43,181

)

 

(2

)%

Total Assets Under Management

 

 

1,129,502

 

 

 

1,028,836

 

 

10

%

 

 

1,127,405

 

 

%

Total Assets Under Administration

 

 

298,468

 

 

 

247,952

 

 

20

%

 

 

297,457

 

 

%

Total AUM and AUA

 

$

1,427,970

 

 

$

1,276,788

 

 

12

%

 

$

1,424,862

 

 

%

 

 

 

 

 

 

 

 

 

 

 

S&P 500

 

 

 

 

 

 

 

 

 

 

Daily average

 

 

5,253

 

 

 

4,207

 

 

25

%

 

 

4,996

 

 

5

%

Period end

 

 

5,460

 

 

 

4,450

 

 

23

%

 

 

5,254

 

 

4

%

 

 

 

 

 

 

 

 

 

 

 

Weighted Equity Index (WEI) (1)

 

 

 

 

 

 

 

 

 

 

Daily average

 

 

3,358

 

 

 

2,769

 

 

21

%

 

 

3,218

 

 

4

%

Period end

 

 

3,456

 

 

 

2,900

 

 

19

%

 

 

3,379

 

 

2

%

 

 

 

 

 

 

 

 

 

 

 

Common shares

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

 

99.6

 

 

 

104.4

 

 

(5

)%

 

 

100.2

 

 

(1

)%

Repurchases

 

 

(1.3

)

 

 

(1.6

)

 

19

%

 

 

(1.2

)

 

(8

)%

Issuances

 

 

0.1

 

 

 

 

 

%

 

 

1.2

 

 

(92

)%

Other

 

 

 

 

 

 

 

%

 

 

(0.6

)

 

NM

 

Total common shares outstanding

 

 

98.4

 

 

 

102.8

 

 

(4

)%

 

 

99.6

 

 

(1

)%

Restricted stock units

 

 

2.6

 

 

 

2.7

 

 

(4

)%

 

 

2.6

 

 

%

Total basic common shares outstanding

 

 

101.0

 

 

 

105.5

 

 

(4

)%

 

 

102.2

 

 

(1

)%

Total potentially dilutive shares

 

 

1.8

 

 

 

2.1

 

 

(14

)%

 

 

1.8

 

 

%

Total diluted shares

 

 

102.8

 

 

 

107.6

 

 

(4

)%

 

 

104.0

 

 

(1

)%

 

 

 

 

 

 

 

 

 

 

 

Capital Returned to Shareholders

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

$

151

 

 

$

146

 

 

3

%

 

$

143

 

 

6

%

Common stock share repurchases

 

 

542

 

 

 

492

 

 

10

%

 

 

507

 

 

7

%

Total Capital Returned to Shareholders

 

$

693

 

 

$

638

 

 

9

%

 

$

650

 

 

7

%

 

 

 

 

 

 

 

 

 

 

 

(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)

 

2 Qtr 2024

 

2 Qtr 2023

 

% Better/

(Worse)

 

1 Qtr 2024

 

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory fees

 

$

1,361

 

 

$

1,154

 

 

18

%

 

$

1,303

 

 

4

%

Financial planning fees

 

 

110

 

 

 

104

 

 

6

%

 

 

112

 

 

(2

)%

Transaction and other fees

 

 

100

 

 

 

96

 

 

4

%

 

 

94

 

 

6

%

Total management and financial advice fees

 

 

1,571

 

 

 

1,354

 

 

16

%

 

 

1,509

 

 

4

%

Distribution fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

 

199

 

 

 

179

 

 

11

%

 

 

196

 

 

2

%

Insurance and annuity

 

 

260

 

 

 

222

 

 

17

%

 

 

247

 

 

5

%

Off-Balance sheet brokerage cash

 

 

40

 

 

 

84

 

 

(52

)%

 

 

50

 

 

(20

)%

Other products

 

 

109

 

 

 

84

 

 

30

%

 

 

105

 

 

4

%

Total distribution fees

 

 

608

 

 

 

569

 

 

7

%

 

 

598

 

 

2

%

Net investment income

 

 

560

 

 

 

483

 

 

16

%

 

 

560

 

 

%

Other revenues

 

 

77

 

 

 

68

 

 

13

%

 

 

72

 

 

7

%

Total revenues

 

 

2,816

 

 

 

2,474

 

 

14

%

 

 

2,739

 

 

3

%

Banking and deposit interest expense

 

 

172

 

 

 

131

 

 

(31

)%

 

 

179

 

 

4

%

Adjusted operating total net revenues

 

 

2,644

 

 

 

2,343

 

 

13

%

 

 

2,560

 

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

1,403

 

 

 

1,196

 

 

(17

)%

 

 

1,369

 

 

(2

)%

Interest and debt expense

 

 

10

 

 

 

6

 

 

(67

)%

 

 

9

 

 

(11

)%

General and administrative expense

 

 

409

 

 

 

410

 

 

%

 

 

420

 

 

3

%

Adjusted operating expenses

 

 

1,822

 

 

 

1,612

 

 

(13

)%

 

 

1,798

 

 

(1

)%

Pretax adjusted operating earnings

 

$

822

 

 

$

731

 

 

12

%

 

$

762

 

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjusted operating margin

 

 

31.1

%

 

 

31.2

%

 

 

 

 

29.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment Operating Metrics

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2024

 

2 Qtr 2023

 

% Better/

(Worse)

 

1 Qtr 2024

 

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AWM Total Client Assets

 

$

972,135

 

 

$

833,347

 

 

17

%

 

$

953,769

 

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Client Flows

 

$

6,604

 

 

$

9,408

 

 

(30

)%

 

$

8,501

 

 

(22

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Wrap Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

521,722

 

 

$

434,674

 

 

20

%

 

$

488,200

 

 

7

%

Net flows

 

 

7,521

 

 

 

5,610

 

 

34

%

 

 

6,518

 

 

15

%

Market appreciation (depreciation) and other

 

 

5,747

 

 

 

14,405

 

 

(60

)%

 

 

27,004

 

 

(79

)%

Total wrap ending assets

 

$

534,990

 

 

$

454,689

 

 

18

%

 

$

521,722

 

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory wrap account assets ending balance (1)

 

$

529,642

 

 

$

449,857

 

 

18

%

 

$

516,469

 

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brokerage Cash & Certificates Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

On-balance sheet (Net Investment Income)

 

 

 

 

 

 

 

 

 

 

 

 

 

On-balance sheet - broker dealer

 

$

2,279

 

 

$

2,605

 

 

(13

)%

 

$

2,477

 

 

(8

)%

On-balance sheet - bank

 

 

21,466

 

 

 

20,933

 

 

3

%

 

 

21,329

 

 

1

%

On-balance sheet - certificate

 

 

12,526

 

 

 

12,069

 

 

4

%

 

 

13,211

 

 

(5

)%

Total on-balance sheet

 

$

36,271

 

 

$

35,607

 

 

2

%

 

$

37,017

 

 

(2

)%

Off-balance sheet (Distribution Fees)

 

 

 

 

 

 

 

 

 

 

 

 

 

Off-balance sheet - broker dealer

 

$

4,359

 

 

$

6,413

 

 

(32

)%

 

$

6,242

 

 

(30

)%

Total brokerage cash & certificates balances

 

$

40,630

 

 

$

42,020

 

 

(3

)%

 

$

43,259

 

 

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Fee Yield

 

 

 

 

 

 

 

 

 

 

 

 

 

On-balance sheet - broker dealer

 

 

5.34

%

 

 

4.72

%

 

 

 

 

5.12

%

 

 

On-balance sheet - bank

 

 

5.15

%

 

 

4.76

%

 

 

 

 

5.06

%

 

 

On-balance sheet - certificates

 

 

5.66

%

 

 

5.20

%

 

 

 

 

5.69

%

 

 

Off-balance sheet - broker dealer

 

 

3.08

%

 

 

4.14

%

 

 

 

 

2.95

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Advisors

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee advisors

 

 

2,236

 

 

 

2,108

 

 

6

%

 

 

2,227

 

 

%

Franchisee advisors

 

 

8,156

 

 

 

8,166

 

 

%

 

 

8,137

 

 

%

Total financial advisors

 

 

10,392

 

 

 

10,274

 

 

1

%

 

 

10,364

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisor Retention

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee

 

 

93.2

%

 

 

92.0

%

 

 

 

 

92.8

%

 

 

Franchisee

 

 

92.6

%

 

 

93.0

%

 

 

 

 

92.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

Ameriprise Financial, Inc.

Asset Management Segment Adjusted Operating Results

(in millions, unaudited)

 

2 Qtr 2024

 

2 Qtr 2023

 

% Better/

(Worse)

 

1 Qtr 2024

 

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

522

 

 

 

$

490

 

 

 

7

%

 

$

530

 

 

 

(2

)%

Institutional

 

 

161

 

 

 

 

157

 

 

 

3

%

 

 

159

 

 

 

1

%

Transaction and other fees

 

 

52

 

 

 

 

48

 

 

 

8

%

 

 

50

 

 

 

4

%

Revenue from other sources (1)

 

 

3

 

 

 

 

4

 

 

 

(25

)%

 

 

3

 

 

 

%

Total management and financial advice fees

 

 

738

 

 

 

 

699

 

 

 

6

%

 

 

742

 

 

 

(1

)%

Distribution fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

 

56

 

 

 

 

51

 

 

 

10

%

 

 

56

 

 

 

%

Insurance and annuity

 

 

40

 

 

 

 

39

 

 

 

3

%

 

 

39

 

 

 

3

%

Total distribution fees

 

 

96

 

 

 

 

90

 

 

 

7

%

 

 

95

 

 

 

1

%

Net investment income

 

 

12

 

 

 

 

10

 

 

 

20

%

 

 

11

 

 

 

9

%

Other revenues

 

 

2

 

 

 

 

9

 

 

 

(78

)%

 

 

7

 

 

 

(71

)%

Total revenues

 

 

848

 

 

 

 

808

 

 

 

5

%

 

 

855

 

 

 

(1

)%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

%

 

 

 

 

 

%

Adjusted operating total net revenues

 

 

848

 

 

 

 

808

 

 

 

5

%

 

 

855

 

 

 

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

244

 

 

 

 

233

 

 

 

(5

)%

 

 

242

 

 

 

(1

)%

Amortization of deferred acquisition costs

 

 

1

 

 

 

 

2

 

 

 

50

%

 

 

2

 

 

 

50

%

Interest and debt expense

 

 

1

 

 

 

 

1

 

 

 

%

 

 

2

 

 

 

50

%

General and administrative expense

 

 

384

 

 

 

 

410

 

 

 

6

%

 

 

403

 

 

 

5

%

Adjusted operating expenses

 

 

630

 

 

 

 

646

 

 

 

2

%

 

 

649

 

 

 

3

%

Pretax adjusted operating earnings

 

$

218

 

 

 

$

162

 

 

 

35

%

 

$

206

 

 

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Pretax Adjusted Operating Margin Reconciliation

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues

 

$

848

 

 

 

$

808

 

 

 

5

%

 

$

855

 

 

 

(1

)%

Distribution pass through revenues

 

 

(192

)

 

 

 

(183

)

 

 

(5

)%

 

 

(192

)

 

 

%

Subadvisory and other pass through revenues

 

 

(98

)

 

 

 

(95

)

 

 

(3

)%

 

 

(96

)

 

 

(2

)%

Net adjusted operating revenues

 

$

558

 

 

 

$

530

 

 

 

5

%

 

$

567

 

 

 

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjusted operating earnings

 

$

218

 

 

 

$

162

 

 

 

35

%

 

$

206

 

 

 

6

%

Adjusted operating net investment income

 

 

(12

)

 

 

 

(10

)

 

 

(20

)%

 

 

(11

)

 

 

(9

)%

Amortization of intangibles

 

 

4

 

 

 

 

6

 

 

 

(33

)%

 

 

3

 

 

 

33

%

Net adjusted operating earnings

 

$

210

 

 

 

$

158

 

 

 

33

%

 

$

198

 

 

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjusted operating margin

 

 

25.7

 

%

 

 

20.0

 

%

 

 

 

 

24.1

 

%

 

 

Net pretax adjusted operating margin (2)

 

 

37.6

 

%

 

 

29.8

 

%

 

 

 

 

34.9

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance fees (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance fees

 

$

2

 

 

 

$

1

 

 

 

NM

 

 

$

17

 

 

 

(88

)%

General and administrative expense related to performance fees

 

 

1

 

 

 

 

1

 

 

 

%

 

 

11

 

 

 

91

%

Net performance fees

 

$

1

 

 

 

$

 

 

 

%

 

$

6

 

 

 

(83

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

2 Qtr 2024

 

2 Qtr 2023

 

% Better/

(Worse)

 

1 Qtr 2024

 

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed Assets Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Retail Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

349,567

 

 

 

$

321,391

 

 

 

9

%

 

$

334,860

 

 

 

4

%

Inflows

 

 

12,536

 

 

 

 

11,547

 

 

 

9

%

 

 

14,047

 

 

 

(11

)%

Outflows

 

 

(18,658

)

 

 

 

(16,323

)

 

 

(14

)%

 

 

(16,308

)

 

 

(14

)%

Net VP/VIT fund flows

 

 

(1,607

)

 

 

 

(1,270

)

 

 

(27

)%

 

 

(1,560

)

 

 

(3

)%

Net new flows

 

 

(7,729

)

 

 

 

(6,046

)

 

 

(28

)%

 

 

(3,821

)

 

 

NM

 

Reinvested dividends

 

 

1,758

 

 

 

 

1,265

 

 

 

39

%

 

 

1,010

 

 

 

74

%

Net flows

 

 

(5,971

)

 

 

 

(4,781

)

 

 

(25

)%

 

 

(2,811

)

 

 

NM

 

Distributions

 

 

(2,099

)

 

 

 

(1,544

)

 

 

(36

)%

 

 

(1,206

)

 

 

(74

)%

Market appreciation (depreciation) and other

 

 

5,889

 

 

 

 

9,885

 

 

 

(40

)%

 

 

19,407

 

 

 

(70

)%

Foreign currency translation (1)

 

 

74

 

 

 

 

2,469

 

 

 

(97

)%

 

 

(683

)

 

 

NM

 

Total ending assets

 

 

347,460

 

 

 

 

327,420

 

 

 

6

%

 

 

349,567

 

 

 

(1

)%

% of total retail assets sub-advised

 

 

16.0

 

%

 

 

15.9

 

%

 

 

 

 

15.6

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

 

302,510

 

 

 

 

286,288

 

 

 

6

%

 

 

302,076

 

 

 

%

Inflows (2)

 

 

10,273

 

 

 

 

11,708

 

 

 

(12

)%

 

 

9,352

 

 

 

10

%

Outflows (2)

 

 

(16,360

)

 

 

 

(12,180

)

 

 

(34

)%

 

 

(12,219

)

 

 

(34

)%

Net flows

 

 

(6,087

)

 

 

 

(472

)

 

 

NM

 

 

 

(2,867

)

 

 

NM

 

Market appreciation (depreciation) and other (3)(4)

 

 

(2,117

)

 

 

 

(1,852

)

 

 

(14

)%

 

 

4,786

 

 

 

NM

 

Foreign currency translation (1)

 

 

114

 

 

 

 

5,214

 

 

 

(98

)%

 

 

(1,485

)

 

 

NM

 

Total ending assets

 

 

294,420

 

 

 

 

289,178

 

 

 

2

%

 

 

302,510

 

 

 

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total managed assets

 

$

641,880

 

 

 

$

616,598

 

 

 

4

%

 

$

652,077

 

 

 

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net flows

 

$

(12,058

)

 

 

$

(5,253

)

 

 

NM

 

 

$

(5,678

)

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Legacy insurance partners flows

 

$

(9,104

)

 

 

$

(1,377

)

 

 

NM

 

 

$

(779

)

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets Under Advisement (5)

 

$

31,980

 

 

 

$

25,282

 

 

 

26

%

 

$

28,669

 

 

 

12

%

Model delivery AUA flows (6)

 

$

923

 

 

 

$

488

 

 

 

89

%

 

$

243

 

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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) Q2 2024 Market depreciation primarily reflects the impact of rising UK gilt yields on the Liability Driven Investing portfolio.

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

(6) 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)

 

2 Qtr 2024

2 Qtr 2023

% Better/

(Worse)

 

1 Qtr 2024

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

 

 

Total Managed Assets by Type

 

 

 

 

 

 

 

 

 

 

Equity

 

$

340,206

 

$

316,092

 

8

%

 

$

341,406

 

%

Fixed income

 

 

226,655

 

 

225,520

 

1

%

 

 

236,588

 

(4

)%

Money market

 

 

22,759

 

 

22,439

 

1

%

 

 

22,164

 

3

%

Alternative

 

 

33,187

 

 

35,088

 

(5

)%

 

 

33,002

 

1

%

Hybrid and other

 

 

19,073

 

 

17,459

 

9

%

 

 

18,917

 

1

%

Total managed assets by type

 

$

641,880

 

$

616,598

 

4

%

 

$

652,077

 

(2

)%

 

 

 

 

 

 

 

 

 

 

 

Average Managed Assets by Type (1)

 

 

 

 

 

 

 

 

 

 

Equity

 

$

336,469

 

$

309,576

 

9

%

 

$

330,281

 

2

%

Fixed income

 

 

228,662

 

 

223,766

 

2

%

 

 

235,529

 

(3

)%

Money market

 

 

22,540

 

 

22,945

 

(2

)%

 

 

22,607

 

%

Alternative

 

 

33,014

 

 

34,888

 

(5

)%

 

 

33,237

 

(1

)%

Hybrid and other

 

 

18,759

 

 

17,152

 

9

%

 

 

18,476

 

2

%

Total average managed assets by type

 

$

639,444

 

$

608,327

 

5

%

 

$

640,130

 

%

 

 

 

 

 

 

 

 

 

 

 

(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

 

2 Qtr 2024

 

 

 

 

 

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

1 year

3 year

5 year

10 year

Equity

60

%

69

%

78

%

90

%

Fixed Income

74

%

66

%

81

%

90

%

Asset Allocation

89

%

60

%

87

%

90

%

 

 

 

 

 

4- or 5-star Morningstar rated funds

Overall

3 year

5 year

10 year

Number of Rated Funds

114

 

71

 

84

 

102

 

 

 

 

 

 

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

 

 

 

 

 

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

 

 

 

 

 

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

 

 

 

 

 

Morningstar as of 06/30/24. Columbia funds are available for purchase by U.S. customers. Out of 89 Columbia funds rated (based on primary share class), 4 received a 5-star Overall Rating and 40 received a 4-star Overall Rating. Out of 139 Threadneedle funds rated (based on highest-rated share class), 20 received a 5-star Overall Rating and 50 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)

 

2 Qtr 2024

 

2 Qtr 2023

 

% Better/

(Worse)

 

1 Qtr 2024

 

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

189

 

 

$

185

 

 

2

%

 

$

189

 

 

%

Distribution fees

 

 

104

 

 

 

100

 

 

4

%

 

 

104

 

 

%

Net investment income

 

 

266

 

 

 

203

 

 

31

%

 

 

243

 

 

9

%

Premiums, policy and contract charges

 

 

367

 

 

 

368

 

 

%

 

 

374

 

 

(2

)%

Other revenues

 

 

2

 

 

 

2

 

 

%

 

 

2

 

 

%

Total revenues

 

 

928

 

 

 

858

 

 

8

%

 

 

912

 

 

2

%

Banking and deposit interest expense

 

 

 

 

 

 

 

%

 

 

 

 

%

Adjusted operating total net revenues

 

 

928

 

 

 

858

 

 

8

%

 

 

912

 

 

2

%

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

129

 

 

 

120

 

 

(8

)%

 

 

124

 

 

(4

)%

Interest credited to fixed accounts

 

 

93

 

 

 

94

 

 

1

%

 

 

91

 

 

(2

)%

Benefits, claims, losses and settlement expenses

 

 

226

 

 

 

188

 

 

(20

)%

 

 

224

 

 

(1

)%

Remeasurement (gains) losses of future policy benefit reserves

 

 

(5

)

 

 

(4

)

 

25

%

 

 

(2

)

 

NM

 

Change in fair value of market risk benefits

 

 

142

 

 

 

123

 

 

(15

)%

 

 

129

 

 

(10

)%

Amortization of deferred acquisition costs

 

 

57

 

 

 

57

 

 

%

 

 

57

 

 

%

Interest and debt expense

 

 

12

 

 

 

12

 

 

%

 

 

12

 

 

%

General and administrative expense

 

 

78

 

 

 

79

 

 

1

%

 

 

78

 

 

%

Adjusted operating expenses

 

 

732

 

 

 

669

 

 

(9

)%

 

 

713

 

 

(3

)%

Pretax adjusted operating earnings

 

$

196

 

 

$

189

 

 

4

%

 

$

199

 

 

(2

)%

 

 

 

 

 

 

 

 

 

 

 

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

Ameriprise Financial, Inc.

Retirement & Protection Solutions Segment Operating Metrics

(in millions, unaudited)

 

2 Qtr 2024

 

2 Qtr 2023

 

% Better/

(Worse)

 

1 Qtr 2024

 

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities Rollforwards

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

84,042

 

 

$

76,809

 

 

9

%

 

$

80,754

 

 

4

%

Deposits

 

 

1,364

 

 

 

940

 

 

45

%

 

 

1,158

 

 

18

%

Withdrawals and terminations

 

 

(2,127

)

 

 

(1,712

)

 

(24

)%

 

 

(2,067

)

 

(3

)%

Net flows

 

 

(763

)

 

 

(772

)

 

1

%

 

 

(909

)

 

16

%

Investment performance and interest credited

 

 

1,255

 

 

 

2,512

 

 

(50

)%

 

 

4,197

 

 

(70

)%

Total ending balance - contract accumulation values

 

$

84,534

 

 

$

78,549

 

 

8

%

 

$

84,042

 

 

1

%

 

 

 

 

 

 

 

 

 

 

 

Variable annuities fixed sub-accounts

 

$

3,935

 

 

$

4,524

 

 

(13

)%

 

$

4,067

 

 

(3

)%

 

 

 

 

 

 

 

 

 

 

 

Life Insurance In Force

 

$

198,340

 

 

$

198,686

 

 

%

 

$

198,550

 

 

%

 

 

 

 

 

 

 

 

 

 

 

Net Amount at Risk (Life)

 

$

38,203

 

 

$

37,708

 

 

1

%

 

$

38,240

 

 

%

 

 

 

 

 

 

 

 

 

 

 

Net Policyholder Reserves

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

$

15,475

 

 

$

14,170

 

 

9

%

 

$

15,305

 

 

1

%

Term and whole life

 

 

174

 

 

 

188

 

 

(7

)%

 

 

180

 

 

(3

)%

Disability insurance

 

 

505

 

 

 

539

 

 

(6

)%

 

 

521

 

 

(3

)%

Other insurance

 

 

524

 

 

 

548

 

 

(4

)%

 

 

528

 

 

(1

)%

Total net policyholder reserves

 

$

16,678

 

 

$

15,445

 

 

8

%

 

$

16,534

 

 

1

%

 

 

 

 

 

 

 

 

 

 

 

DAC Ending Balances

 

 

 

 

 

 

 

 

 

 

Variable Annuities DAC

 

$

1,692

 

 

$

1,722

 

 

(2

)%

 

$

1,697

 

 

%

Life and Health DAC

 

$

956

 

 

$

964

 

 

(1

)%

 

$

957

 

 

%

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

Corporate Segment Adjusted Operating Results and Metrics

(in millions, unaudited)

 

2 Qtr 2024

 

2 Qtr 2023

 

% Better/

(Worse)

 

1 Qtr 2024

 

% 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

 

 

(9

)

 

 

24

 

 

NM

 

 

 

 

 

%

Premiums, policy and contract charges

 

 

 

 

 

 

 

%

 

 

 

 

%

Other revenues

 

 

3

 

 

 

 

 

%

 

 

1

 

 

NM

 

Total revenues

 

 

(6

)

 

 

24

 

 

NM

 

 

 

1

 

 

NM

 

Banking and deposit interest expense

 

 

7

 

 

 

3

 

 

NM

 

 

 

8

 

 

13

%

Adjusted operating total net revenues

 

 

(13

)

 

 

21

 

 

NM

 

 

 

(7

)

 

(86

)%

 

 

 

 

 

 

 

 

 

 

 

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

 

 

24

 

 

 

27

 

 

11

%

 

 

23

 

 

(4

)%

General and administrative expense

 

 

86

 

 

 

50

 

 

(72

)%

 

 

69

 

 

(25

)%

Adjusted operating expenses

 

 

110

 

 

 

77

 

 

(43

)%

 

 

92

 

 

(20

)%

Pretax adjusted operating earnings (loss)

 

$

(123

)

 

$

(56

)

 

NM

 

 

$

(99

)

 

(24

)%

 

 

 

 

 

 

 

 

 

 

 

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

Ameriprise Financial, Inc.

Corporate Segment Adjusted Operating Results and Metrics

(in millions, unaudited)

 

2 Qtr 2024

 

2 Qtr 2023

 

% Better/

(Worse)

 

1 Qtr 2024

 

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

 

 

Long Term Care Adjusted Operating Income Statements

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

 

$

 

 

%

 

$

 

 

%

Distribution fees

 

 

 

 

 

 

 

%

 

 

 

 

%

Net investment income

 

 

48

 

 

 

44

 

 

9

%

 

 

49

 

 

(2

)%

Premiums, policy and contract charges

 

 

22

 

 

 

23

 

 

(4

)%

 

 

23

 

 

(4

)%

Other revenues

 

 

 

 

 

 

 

%

 

 

 

 

%

Total revenues

 

 

70

 

 

 

67

 

 

4

%

 

 

72

 

 

(3

)%

Banking and deposit interest expense

 

 

 

 

 

 

 

%

 

 

 

 

%

Adjusted operating total net revenues

 

 

70

 

 

 

67

 

 

4

%

 

 

72

 

 

(3

)%

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

(2

)

 

 

(2

)

 

%

 

 

(3

)

 

(33

)%

Interest credited to fixed accounts

 

 

 

 

 

 

 

%

 

 

 

 

%

Benefits, claims, losses and settlement expenses

 

 

56

 

 

 

58

 

 

3

%

 

 

53

 

 

(6

)%

Remeasurement (gains) losses of future policy benefit reserves

 

 

(3

)

 

 

4

 

 

NM

 

 

 

(2

)

 

50

%

Change in fair value of market risk benefits

 

 

 

 

 

 

 

%

 

 

 

 

%

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

%

 

 

 

 

%

Interest and debt expense

 

 

1

 

 

 

1

 

 

%

 

 

2

 

 

50

%

General and administrative expense

 

 

6

 

 

 

5

 

 

(20

)%

 

 

6

 

 

%

Adjusted operating expenses

 

 

58

 

 

 

66

 

 

12

%

 

 

56

 

 

(4

)%

Pretax adjusted operating earnings (loss)

 

$

12

 

 

$

1

 

 

NM

 

 

$

16

 

 

(25

)%

 

 

 

 

 

 

 

 

 

 

 

Long Term Care Policyholder Reserves, net of reinsurance

 

$

2,557

 

 

$

2,616

 

 

(2

)%

 

$

2,615

 

 

(2

)%

 

 

 

 

 

 

 

 

 

 

 

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

Ameriprise Financial, Inc.

Corporate Segment Adjusted Operating Results and Metrics

(in millions, unaudited)

 

2 Qtr 2024

2 Qtr 2023

% Better/

(Worse)

1 Qtr 2024

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

 

Fixed Annuities Adjusted Operating Income Statements

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

 

$

 

 

%

$

 

 

%

Distribution fees

 

 

 

 

 

 

 

%

 

 

 

%

Net investment income

 

 

8

 

 

 

8

 

 

%

 

9

 

 

(11

)%

Premiums, policy and contract charges

 

 

1

 

 

 

 

 

%

 

 

 

%

Other revenues

 

 

45

 

 

 

52

 

 

(13

)%

 

47

 

 

(4

)%

Total revenues

 

 

54

 

 

 

60

 

 

(10

)%

 

56

 

 

(4

)%

Banking and deposit interest expense

 

 

 

 

 

 

 

%

 

 

 

%

Adjusted operating total net revenues

 

 

54

 

 

 

60

 

 

(10

)%

 

56

 

 

(4

)%

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

%

 

1

 

 

NM

 

Interest credited to fixed accounts

 

 

54

 

 

 

57

 

 

5

%

 

55

 

 

2

%

Benefits, claims, losses and settlement expenses

 

 

1

 

 

 

 

 

%

 

 

 

%

Remeasurement (gains) losses of future policy benefit reserves

 

 

 

 

 

 

 

%

 

 

 

%

Change in fair value of market risk benefits

 

 

 

 

 

 

 

%

 

 

 

%

Amortization of deferred acquisition costs

 

 

3

 

 

 

2

 

 

(50

)%

 

2

 

 

(50

)%

Interest and debt expense

 

 

1

 

 

 

1

 

 

%

 

 

 

%

General and administrative expense

 

 

3

 

 

 

5

 

 

40

%

 

4

 

 

25

%

Adjusted operating expenses

 

 

62

 

 

 

65

 

 

5

%

 

62

 

 

%

Pretax adjusted operating earnings (loss)

 

$

(8

)

 

$

(5

)

 

(60

)%

$

(6

)

 

(33

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Ameriprise Financial, Inc.

Eliminations (1) Adjusted Operating Results

(in millions, unaudited)

 

2 Qtr 2024

 

2 Qtr 2023

 

% Better/

(Worse)

 

1 Qtr 2024

 

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

(41

)

 

$

(37

)

 

(11

)%

 

$

(39

)

 

(5

)%

Distribution fees

 

 

(303

)

 

 

(277

)

 

(9

)%

 

 

(291

)

 

(4

)%

Net investment income

 

 

(15

)

 

 

(12

)

 

(25

)%

 

 

(17

)

 

12

%

Premiums, policy and contract charges

 

 

(8

)

 

 

(8

)

 

%

 

 

(9

)

 

11

%

Other revenues

 

 

 

 

 

 

 

%

 

 

 

 

%

Total revenues

 

 

(367

)

 

 

(334

)

 

(10

)%

 

 

(356

)

 

(3

)%

Banking and deposit interest expense

 

 

(7

)

 

 

(3

)

 

NM

 

 

 

(8

)

 

(13

)%

Adjusted operating total net revenues

 

 

(360

)

 

 

(331

)

 

(9

)%

 

 

(348

)

 

(3

)%

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

(324

)

 

 

(299

)

 

8

%

 

 

(314

)

 

3

%

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

 

 

(9

)

 

 

(9

)

 

%

 

 

(8

)

 

13

%

General and administrative expense

 

 

(22

)

 

 

(18

)

 

22

%

 

 

(21

)

 

5

%

Adjusted operating expenses

 

 

(360

)

 

 

(331

)

 

9

%

 

 

(348

)

 

3

%

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)

 

June 30,

2024

 

June 30,

2023

 

March 31,

2024

 

 

 

 

 

 

 

 

 

 

Long-term Debt Summary

 

 

 

 

 

 

 

 

 

Senior notes

 

$

3,400

 

 

 

$

3,550

 

 

 

$

3,400

 

 

Finance lease liabilities

 

 

15

 

 

 

 

23

 

 

 

 

17

 

 

Other (1)

 

 

(19

)

 

 

 

(16

)

 

 

 

(19

)

 

Total Ameriprise Financial long-term debt

 

 

3,396

 

 

 

 

3,557

 

 

 

 

3,398

 

 

Non-recourse debt of consolidated investment entities

 

 

2,386

 

 

 

 

2,264

 

 

 

 

2,119

 

 

Total long-term debt

 

$

5,782

 

 

 

$

5,821

 

 

 

$

5,517

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt

 

$

3,396

 

 

 

$

3,557

 

 

 

$

3,398

 

 

Finance lease liabilities

 

 

(15

)

 

 

 

(23

)

 

 

 

(17

)

 

Other (1)

 

 

19

 

 

 

 

16

 

 

 

 

19

 

 

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

 

$

3,400

 

 

 

$

3,550

 

 

 

$

3,400

 

 

 

 

 

 

 

 

 

 

 

 

Total equity (2)

 

$

4,993

 

 

 

$

4,080

 

 

 

$

4,879

 

 

Equity of consolidated investment entities

 

 

(1

)

 

 

 

(10

)

 

 

 

(1

)

 

Total equity excluding CIEs

 

$

4,992

 

 

 

$

4,070

 

 

 

$

4,878

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial capital

 

$

8,389

 

 

 

$

7,637

 

 

 

$

8,277

 

 

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

 

$

8,392

 

 

 

$

7,620

 

 

 

$

8,278

 

 

 

 

 

 

 

 

 

 

 

 

Debt to capital

 

 

 

 

 

 

 

 

 

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

 

 

40.5

 

%

 

 

46.6

 

%

 

 

41.1

 

%

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

 

 

40.5

 

%

 

 

46.6

 

%

 

 

41.1

 

%

 

 

 

 

 

 

 

 

 

 

Available Capital for Capital Adequacy

 

$

5,245

 

 

 

$

5,011

 

 

 

$

5,135

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

June 30,

2024

 

December 31,

2023

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Cash and cash equivalents

 

$

7,517

 

 

$

7,477

 

 

Cash of consolidated investment entities

 

 

351

 

 

 

87

 

 

Investments

 

 

55,865

 

 

 

55,489

 

 

Investments of consolidated investment entities

 

 

2,275

 

 

 

2,099

 

 

Market risk benefits

 

 

2,082

 

 

 

1,427

 

 

Separate account assets

 

 

79,098

 

 

 

77,457

 

 

Receivables

 

 

14,823

 

 

 

15,078

 

 

Receivables of consolidated investment entities

 

 

30

 

 

 

28

 

 

Deferred acquisition costs

 

 

2,694

 

 

 

2,713

 

 

Restricted and segregated cash and investments

 

 

1,373

 

 

 

1,635

 

 

Other assets

 

 

13,592

 

 

 

11,700

 

 

Other assets of consolidated investment entities

 

 

 

 

 

1

 

 

Total Assets

 

$

179,700

 

 

$

175,191

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Policyholder account balances, future policy benefits and claims

 

$

39,742

 

 

$

37,545

 

 

Market risk benefits

 

 

1,252

 

 

 

1,762

 

 

Separate account liabilities

 

 

79,098

 

 

 

77,457

 

 

Customer deposits

 

 

36,237

 

 

 

37,321

 

 

Short-term borrowings

 

 

201

 

 

 

201

 

 

Long-term debt

 

 

3,396

 

 

 

3,399

 

 

Debt of consolidated investment entities

 

 

2,386

 

 

 

2,155

 

 

Accounts payable and accrued expenses

 

 

2,386

 

 

 

2,603

 

 

Other liabilities

 

 

9,768

 

 

 

7,974

 

 

Other liabilities of consolidated investment entities

 

 

241

 

 

 

45

 

 

Total Liabilities

 

 

174,707

 

 

 

170,462

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

Ameriprise Financial

 

 

 

 

 

Common shares ($.01 par)

 

 

3

 

 

 

3

 

 

Additional paid-in capital

 

 

9,987

 

 

 

9,824

 

 

Retained earnings

 

 

23,430

 

 

 

21,905

 

 

Treasury stock

 

 

(26,434

)

 

 

(25,237

)

 

Accumulated other comprehensive income, net of tax

 

 

(1,993

)

 

 

(1,766

)

 

Total Equity

 

 

4,993

 

 

 

4,729

 

 

Total Liabilities and Equity

 

$

179,700

 

 

$

175,191

 

 

 

 

 

 

 

 

Supplemental Non-GAAP Information:

 

 

 

 

 

Available Capital for Capital Adequacy

 

$

5,245

 

 

$

5,418

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