Here’s Why Interest Rates Made Supporting Annuities Trickier for Ameriprise This Summer
October 30, 2019 by Allison Bell
Annuity sales may have been fine this summer, but wild interest rate fluctuations made the third quarter a tough time to manage the investments supporting annuity obligations.
Walter Berman, the chief financial officer of Ameriprise Financial Inc., talked about the third-quarter rate rollercoaster Thursday, during a conference call the company held to go over third-quarter performance with securities analysts.
The Minneapolis-based company is reporting $543 million in net income for the third quarter on $3.3 billion in revenue, up from $503 million in net income on $3.3 billion in revenue for the third quarter of 2018.
The company’s annuity unit reported $120 million in operating earnings for the latest quarter on $617 million in revenue, compared with $129 million in operating income on $628 million in revenue for the year-earlier quarter.