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  • Ameriprise Financial Reports First Quarter 2021 Results

    April 27, 2021 by Ameriprise Financial, Inc.

    MINNEAPOLIS–(BUSINESS WIRE)–Ameriprise Financial, Inc. (NYSE: AMP):

    Earnings Per Diluted Share

     

    Return on Equity, ex AOCI (1)

     

    Q1 2021

     

     

    Q1 2021

    GAAP

    $3.58

     

    GAAP

    (1.1)%

    Adjusted Operating

    $5.43

     

    Adjusted Operating

    29.9%

    Ameriprise increased its quarterly dividend 9 percent to $1.13 per share

    • First quarter adjusted operating earnings per diluted share was $5.43. The prior year period included a tax benefit from a projected net operating loss (NOL) of $1.12 per diluted share. Excluding this impact, adjusted operating EPS increased 27 percent from $4.29 reflecting strong business growth.

     

    Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer

     

     

    “Ameriprise delivered an excellent first quarter, building on our momentum from 2020. We continue to execute our strategy well, invest for business growth and deliver meaningful results. And, as economies reopen globally and activity increases, there’s a large and growing opportunity to help more consumers and institutions achieve their goals.

     

    “Our priority is to deliver a differentiated client experience and reach more people through our leading advice value proposition at Ameriprise, as well as through the broad capabilities and perspective at Columbia Threadneedle. This consistent focus is resulting in strong organic growth, including generating more than $14 billion of client net inflows in the quarter.

     

    “As we recently announced, we will be complementing our growth with the strategic acquisition of BMO’s EMEA asset management business. This will increase Columbia Threadneedle’s presence in the European institutional market and expand our investment capabilities and solutions to meet growing client demand.

     

    “With our consistent level of free-cash flow generation and financial strength, we were again able to increase our dividend another 9 percent – our 17th increase over the past 16 years – use cash for the acquisition and ensure our capital return plans are on track, all while maintaining our strong financial foundation.”

    • First quarter GAAP net income per diluted share was $3.58, which was negatively impacted by market changes that affected the valuation of derivatives. In the prior year period, the severe market dislocation, steep interest rate reduction and credit spread widening related to COVID-19 resulted in a substantial increase in GAAP results. See details on page 2.

     

    • Adjusted operating net revenue was $3.3 billion, a 10 percent increase from strong organic growth, an excellent result in the face of significant headwinds from low short-term interest rates.

     

    • General and administrative expenses were well managed in light of business growth, up 7 percent. Excluding the impact of share price appreciation on compensation expense, G&A was up 2 percent.

     

    • Assets under management and administration were up 36 percent to $1.14 trillion, a record high from strong client flows in Wealth and Asset Management, as well as market appreciation.

     

    • The company continues to generate strong organic growth, with more than $14 billion of client net inflows from Advice & Wealth Management and Asset Management.

     

    • The advisor network grew to 10,031 with 93 new experienced advisors joining the company in the quarter.

     

    • Investment performance at Columbia Threadneedle Investments remains excellent with 103 funds with 4- and 5-star Morningstar ratings.

     

    • The company returned $491 million of capital to shareholders in the quarter and announced a 9 percent increase in its quarterly dividend to $1.13 per share.

     

    • On April 12, Ameriprise announced the acquisition of BMO’s EMEA Asset Management business for approximately $845 million in cash. This acquisition expands key capabilities in attractive and growing market segments where BMO EMEA Asset Management has leading positions.

     

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

    As indicated, the severe market dislocation and steep interest rate reduction in the first quarter of 2020 related to COVID-19 distorted the company’s prior year GAAP and operating results. This included a tax benefit in the year ago quarter from a projected net operating loss (NOL) that was not ultimately realized.

    Ameriprise Financial, Inc.

    First Quarter Summary

     

    Quarter Ended
    March 31,

    % Over/
    (Under)

    (in millions, except per share amounts, unaudited)

    2021

    2020

    GAAP net income

    $

    437

     

     

    $

    2,036

     

     

    (79)%

    Adjusted operating earnings (see reconciliation on p. 25)

    $

    663

     

     

    $

    694

     

     

    (4)%

    Adjusted operating earnings excluding Net Operating Loss (NOL) tax benefit (see reconciliation on p. 25)

    $

    663

     

     

    $

    550

     

     

    21%

     

     

     

     

     

     

    GAAP net income per diluted share (1)

    $

    3.58

     

     

    $

    15.88

     

     

    (77)%

    Adjusted operating earnings per diluted share (see reconciliation on p. 25)

    $

    5.43

     

     

    $

    5.41

     

     

    Adjusted operating earnings per diluted share excluding Net Operating Loss (NOL) tax benefit (see reconciliation on p. 25) (2)

    $

    5.43

     

     

    $

    4.29

     

     

    27%

     

     

     

     

     

     

    GAAP Return on Equity, ex. AOCI

    (1.1

    )

    %

    59.5

     

    %

     

    Adjusted Operating Return on Equity, ex. AOCI

    29.9

     

    %

    39.7

     

    %

     

     

     

     

     

     

     

    Weighted average common shares outstanding:

     

     

     

     

     

    Basic

    119.8

     

    126.4

     

     

    Diluted

    122.2

     

    128.2

     

     

     

     

     

     

     

     

     

    (1) GAAP EPS of $3.58, a reduction of 77 percent.

    • Primarily driven by the prior year quarter, which was positively impacted by the significant change in the company’s credit spread and valuation of derivatives used to hedge the company’s variable annuity living benefit guarantees due to severe market dislocation.
    • Current year quarter results were negatively impacted by market changes that affected the valuation of derivatives.

    (2) Adjusted operating earnings per diluted share excluding net operating loss (NOL) tax benefit of $5.43, up 27 percent.

    • The significant equity market dislocation in the prior year period created a tax benefit of $1.12 per diluted share associated with the utilization of a NOL that was ultimately not utilized.

    Ameriprise Financial, Inc.

    Advice & Wealth Management Segment Adjusted Operating Results

     

    Quarter Ended
    March 31,

    % Over/
    (Under)

    Adjusted(1)
    % Over/
    (Under)

    (in millions, unaudited)

    2021

    2020

    Net revenues

    $

    1,879

     

    $

    1,695

     

    11%

    16%

    Distribution expenses

    1,135

     

    970

     

    (17)%

    (17)%

    G&A / other expense

    355

     

    347

     

    (2)%

    (2)%

    Pretax adjusted operating earnings

    $

    389

     

    $

    378

     

    3%

    30%

     

     

     

     

     

     

     

    Pretax adjusted operating margin

    20.7

    %

    22.3

    %

    (160) bps

    215 bps

     

     

     

     

     

     

     

    (1) Adjusted for $78 million impact from interest rates. See reconciliation on page 28.

     

    Quarter Ended
    March 31,

    % Over/
    (Under)

    (in billions, unless otherwise noted)

    2021

     

    2020

    Total client assets

    $

    762

     

    $

    560

    36%

    Total client net flows (1)

    $

    9.3

     

    $

    7.7

    21%

    Wrap net flows (1)

    $

    10.4

     

    $

    6.7

    55%

    AWM cash balance

    $

    40.4

     

    $

    40.0

    1%

    Average gross yield on cash balances (in bps)

    65

     

    172

     

    Adjusted operating net revenue per advisor (TTM in thousands)

    $

    689

     

    $

    680

    1%

    Adjusted for interest rates (2)

    $

    689

     

    $

    640

    8%

     

     

     

     

     

    (1) See definition on page 12.

    (2) Adjusted for impact from interest rates. See reconciliation on page 28.

    Advice & Wealth Management pretax adjusted operating earnings were $389 million, driven by strong flows, higher transactional activity and strong expense management. Excluding the impact from the decline in short-term interest rates of $78 million, adjusted operating earnings increased 30 percent and pretax adjusted operating margin increased 215 basis points. On a sequential basis, pretax operating earnings increased 11 percent and pretax adjusted operating margin expanded 90 basis points.

    Adjusted operating net revenues were $1.9 billion, reflecting strong net flows and market appreciation. Excluding the decline in short-term interest rates, revenues increased 16 percent. On a sequential basis, revenues increased 6 percent from strong flows and market appreciation, partially offset by fewer fee days in the current quarter.

    Total expenses were $1.5 billion. General and administrative expense was well managed and increased 2 percent, which was in line with expectations based upon the cost associated with increased activity and the impact of share price appreciation on compensation expense.

    Total client assets grew 36 percent to $762 billion, with continued strong total client flows of $9.3 billion in the quarter. The company’s ability to meet client needs efficiently and effectively is translating into excellent organic growth. Advisor productivity remains high with a 55 percent increase in flows in the investment advisory business and a 12 percent increase in transactional activity. Wrap net flows reached a record $10.4 billion. Cash balances remain elevated at $40.4 billion with a substantial opportunity for clients to put cash back to work in the future.

    Adjusted operating net revenue per advisor on a trailing 12-month basis was $689,000. Excluding the decline in short-term interest rates, adjusted net revenue per advisor increased 8 percent. Total advisors were 10,031 from a combination of high advisor retention and the addition of 93 experienced advisors in the quarter.

    Ameriprise Financial, Inc.

    Asset Management Segment Adjusted Operating Results

     

    Quarter Ended
    March 31,

    % Over/
    (Under)

    (in millions, unaudited)

    2021

     

    2020

     

    Net revenues

    $

    828

     

     

    $

    686

     

     

    21%

    Distribution expenses

    268

     

     

    231

     

     

    (16)%

    G&A / other expenses

    332

     

     

    298

     

     

    (11)%

    Pretax adjusted operating earnings

    $

    228

     

     

    $

    157

     

     

    45%

     

     

     

     

     

     

    Net pretax adjusted operating margin (1)

    43.9

     

    %

    37.9

     

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Quarter Ended
    March 31,

    % Over/
    (Under)

    (in billions)

    2021

     

    2020

     

    Total segment AUM

    $

    564

     

     

    $

    426

     

     

    32%

     

     

     

     

     

     

    Net Flows

     

     

     

     

     

    Global Retail net flows

    $

    4.6

     

     

    $

    (2.9

    )

     

    NM

    Global Institutional net flows, ex. legacy insurance partners flows

    1.6

     

     

    1.1

     

     

    45%

    Legacy insurance partners flows

    (1.3

    )

     

    (0.6

    )

     

    NM

    Total segment net flows

    $

    4.9

     

     

    $

    (2.4

    )

     

    NM

     

     

     

     

     

     

    Model delivery AUA Flows (2)

    $

    0.3

     

     

    $

    0.1

     

     

    NM

     

     

     

     

     

     

    (1) See reconciliation on page 13.

     

     

     

     

     

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

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

    Asset Management pretax adjusted operating earnings were $228 million, up 45 percent, reflecting our investment engine, which is driving revenue growth through consistent investment performance and compelling thought leadership leading to increased customer engagement. The prior year quarter included an unfavorable performance fee adjustment. The net pretax adjusted operating margin was 43.9 percent.

    Adjusted operating revenues increased 21 percent to $828 million from the cumulative benefit of inflows, a favorable mix shift and higher equity markets. The overall fee rate remained strong at 52 basis points.

    Adjusted operating expenses increased 13 percent. General and administrative expenses grew 12 percent driven primarily from higher compensation expense related to stronger business performance and Ameriprise share price appreciation compared to last year, as well as the costs associated with increased activity levels.

    Total assets under management increased 32 percent reflecting higher equity markets and net inflows. Investment performance remained strong across equity, fixed income and asset-allocation strategies.

    In the quarter, net inflows were $4.9 billion, an improvement of $7.3 billion from a year ago. Excluding legacy insurance partners outflows, net inflows were $6.2 billion, reflecting a continuation of positive flow trends across multiple distribution channels and strategies.

    • Retail net inflows were $4.6 billion. Net inflows in North America were $4.8 billion with notable inflows in the broker-dealer channel partially offset by modest outflows in EMEA.
    • Global institutional net inflows were $1.6 billion, with gross sales across multiple strategies.

    Ameriprise Financial, Inc.

    Retirement & Protection Solutions Segment (1) Adjusted Operating Results

     

    Quarter Ended
    March 31,

    % Over/
    (Under)

    (in millions, unaudited)

    2021

     

    2020

    Net revenues

    $

    787

     

     

    $

    759

     

    4%

    Expenses

    604

     

     

    592

     

    (2)%

    Pretax adjusted operating earnings

    $

    183

     

     

    $

    167

     

    10%

     

     

     

     

     

    Retirement & Protection Solutions pretax adjusted operating earnings increased 10 percent to $183 million. Results were strong from market appreciation, partially offset by higher claims versus an abnormally low level in the year ago period. Overall claims remain within expected ranges.

    Retirement sales increased 30 percent year-over-year to $1.5 billion. Retirement sales without living benefit guarantees represented 64 percent of variable annuity sales, driven by our lower-risk structured product, as well as our RAVA 5 product without living benefit guarantees. This sales shift is having a gradual impact on our inforce block, with account values with living benefit riders down nearly 2 percentage points year-over-year to 63 percent. This sales trend is expected to continue and meaningfully shift the mix of the business over time to lower-risk products that do not have living benefit guarantees. Annuity net amount at risk as a percent of account values was de minimis at 0.4 percent for living benefits and 0.1 percent for death benefits, which management believes is one of the lowest among major variable annuity writers, reflecting the high quality of the book.

    Sales of protection products were flat to a year ago with a product mix shift that is consistent with our focused approach. Sales of higher-margin accumulation VUL products increased more than 75 percent and sales shifted away from indexed UL products as expected given pricing changes that reflect the low interest rate environment.

    (1) Retirement & Protection Solutions segment includes Retirement Solutions (Variable Annuities and Payout Annuities) and Protection Solutions (Life and Disability Insurance). Fixed Annuities moved to the Corporate & Other segment in Q3 2020 as a closed block. Prior periods have been restated.

    Ameriprise Financial, Inc.

    Corporate & Other Segment (1) Adjusted Operating Results

     

    Quarter Ended
    March 31,

    % Over/
    (Under)

    (in millions, unaudited)

    2021

     

    2020

    Corporate & Other, excluding Closed Blocks

    $

    (63

    )

     

    $

    (52

    )

    (21)%

    Closed Blocks (2)

    42

     

     

    2

     

    NM

    Pretax adjusted operating earnings

    $

    (21

    )

     

    $

    (50

    )

    58%

     

     

     

     

     

    Long Term Care

    $

    46

     

     

    $

    2

     

    NM

    Fixed Annuities

    (4

    )

     

     

    Closed Blocks pretax adjusted operating earnings

    $

    42

     

     

    $

    2

     

    NM

     

     

     

     

     

    (1) Fixed Annuities was moved into the Corporate & Other segment as a closed block. Prior periods have been restated.

    (2) Long Term Care and Fixed Annuities.

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

    Total Corporate & Other pretax adjusted operating loss was $21 million, a $29 million improvement from the prior year.

    Corporate & Other, excluding Closed Blocks, pretax adjusted operating loss was $63 million. Results in the quarter included $11 million of higher compensation expense related to the impact of Ameriprise share price appreciation and $15 million from a strategic investment gain. The year ago quarter included an $11 million benefit from Ameriprise share price depreciation.

    Long Term Care pretax adjusted operating earnings were $46 million from higher mortality and terminations, primarily related to COVID-19, which had a decreasing impact as we moved through the quarter.

    Fixed Annuities pretax adjusted operating loss was $4 million from narrowed spreads related to continued low interest rates.

    Taxes

    The operating effective tax rate was 14.9 percent for the first quarter. The full year operating effective tax rate is expected to be approximately 17 percent.

    About Ameriprise Financial

    At Ameriprise Financial, we have been helping people feel confident about their financial future for more than 125 years. With extensive advisory, asset management and insurance capabilities and a nationwide network of approximately 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 is an SEC- and FCA-registered investment adviser affiliate 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 all 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 earnings 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, consolidated tax rate, return of capital to shareholders, and excess capital position and financial flexibility to capture additional growth opportunities;
    • statements about the expected trend in the shift of the retirement product sales business to lower risk products without living benefit guarantees over time;
    • 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; and
    • statements estimating the expected full year operating effective tax rate;
    • 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,” “scenario, “case,” “appear” 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, 2020, Part 1, Item 1A 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 quarter ended March 31, 2021.

    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)

    1 Qtr 2021

     

    1 Qtr 2020

    % Over/
    (Under)

    4 Qtr 2020

    % Over/
    (Under)

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

    2,102

     

     

    $

    1,770

     

    19%

    $

    2,003

     

    5%

    Distribution fees

    458

     

     

    464

     

    (1)%

    422

     

    9%

    Net investment income

    377

     

     

    328

     

    15%

    318

     

    19%

    Premiums, policy and contract charges

    347

     

     

    395

     

    (12)%

    375

     

    (7)%

    Other revenues

    71

     

     

    69

     

    3%

    71

     

    Total revenues

    3,355

     

     

    3,026

     

    11%

    3,189

     

    5%

    Banking and deposit interest expense

    5

     

     

    25

     

    80%

    6

     

    17%

    Total net revenues

    3,350

     

     

    3,001

     

    12%

    3,183

     

    5%

                 

    Expenses

     

     

     

     

     

     

    Distribution expenses

    1,175

     

     

    995

     

    (18)%

    1,096

     

    (7)%

    Interest credited to fixed accounts

    159

     

     

    91

     

    (75)%

    121

     

    (31)%

    Benefits, claims, losses and settlement expenses

    653

     

     

    (1,747

    )

    NM

    982

     

    34%

    Amortization of deferred acquisition costs

    5

     

     

    512

     

    99%

    (72

    )

    NM

    Interest and debt expense

    42

     

     

    46

     

    9%

    38

     

    (11)%

    General and administrative expense

    823

     

     

    753

     

    (9)%

    828

     

    1%

    Total expenses

    2,857

     

     

    650

     

    NM

    2,993

     

    5%

    Pretax income

    493

     

     

    2,351

     

    (79)%

    190

     

    NM

    Income tax provision

    56

     

     

    315

     

    82%

    13

     

    NM

    Net income

    $

    437

     

     

    $

    2,036

     

    (79)%

    $

    177

     

    NM

     

     

     

     

     

     

     

    Earnings per share

     

     

     

     

     

     

    Basic earnings per share

    $

    3.65

     

     

    $

    16.11

     

     

    $

    1.46

     

     

    Earnings per diluted share

    $

    3.58

     

     

    $

    15.88

     

     

    $

    1.43

     

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding

     

     

     

     

     

     

    Basic

    119.8

     

     

    126.4

     

     

    120.9

     

     

    Diluted

    122.2

     

     

    128.2

     

     

    123.4

     

     

     

     

     

     

     

     

     

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

    Ameriprise Financial, Inc.

    Consolidated Highlights and Capital Summary

    (in millions unless otherwise noted, unaudited)

    1 Qtr 2021

     

    1 Qtr 2020

    % Over/
    (Under)

    4 Qtr 2020

    % Over/
    (Under)

     

     

     

     

     

     

     

    Assets Under Management and Administration

     

     

     

     

     

    Advice & Wealth Management AUM

    $

    396,533

     

     

    $

    273,072

     

    45%

    $

    376,811

     

    5%

    Asset Management AUM

    564,131

     

     

    426,163

     

    32%

    546,613

     

    3%

    Corporate AUM

    97

     

     

    48

     

    NM

    82

     

    18%

    Eliminations

    (39,655

    )

     

    (27,923

    )

    (42)%

    (37,483

    )

    (6)%

    Total Assets Under Management

    921,106

     

     

    671,360

     

    37%

    886,023

     

    4%

    Total Assets Under Administration

    222,887

     

     

    167,760

     

    33%

    216,066

     

    3%

    Total AUM and AUA

    $

    1,143,993

     

     

    $

    839,120

     

    36%

    $

    1,102,089

     

    4%

     

     

     

     

     

     

     

    S&P 500

     

     

     

     

     

     

    Daily average

    3,861

     

     

    3,069

     

    26%

    3,555

     

    9%

    Period end

    3,973

     

     

    2,585

     

    54%

    3,756

     

    6%

     

     

     

     

     

     

     

    Weighted Equity Index (WEI) (1)

     

     

     

     

     

     

    Daily average

    2,662

     

     

    2,111

     

    26%

    2,414

     

    10%

    Period end

    2,725

     

     

    1,753

     

    55%

    2,573

     

    6%

     

     

     

     

     

     

     

    Common shares

     

     

     

     

     

     

    Beginning balance

    116.8

     

     

    123.9

     

    (6)%

    118.6

     

    (2)%

    Repurchases

    (1.7

    )

     

    (2.5

    )

    32%

    (2.1

    )

    19%

    Issuances

    1.8

     

     

    1.8

     

    1.0

     

    80%

    Other

    (0.9

    )

     

    (0.9

    )

    (0.7

    )

    (29)%

    Total common shares outstanding

    116.0

     

     

    122.3

     

    (5)%

    116.8

     

    (1)%

    Restricted stock units

    3.0

     

     

    3.1

     

    (3)%

    3.2

     

    (6)%

    Total basic common shares outstanding

    119.0

     

     

    125.4

     

    (5)%

    120.0

     

    (1)%

    Total potentially dilutive shares

    2.5

     

     

    0.9

     

    NM

    2.5

     

    Total diluted shares

    121.5

     

     

    126.3

     

    (4)%

    122.5

     

    (1)%

     

     

     

     

     

     

     

    Capital Returned to Shareholders

     

     

     

     

     

     

    Dividends paid

    $

    128

     

     

    $

    126

     

    2%

    $

    126

     

    2%

    Common stock share repurchases

    363

     

     

    386

     

    (6)%

    376

     

    (3)%

    Total Capital Returned to Shareholders

    $

    491

     

     

    $

    512

     

    (4)%

    $

    502

     

    (2)%

     

     

     

     

     

     

     

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

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

    Ameriprise Financial, Inc.

    Advice & Wealth Management Segment Adjusted Operating Results

    (in millions, unaudited)

    1 Qtr 2021

    1 Qtr 2020

    % Over/
    (Under)

    4 Qtr 2020

    % Over/
    (Under)

     

     

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

     

     

    Management and financial advice fees:

     

     

     

     

     

     

     

     

    Advisory fees

    $

    1,028

     

    $

    854

     

    20%

    $

    953

     

    8%

    Financial planning fees

    88

     

    81

     

    9%

    100

     

    (12)%

    Transaction and other fees

    89

     

    89

     

    88

     

    1%

    Total management and financial advice fees

    1,205

     

    1,024

     

    18%

    1,141

     

    6%

    Distribution fees:

     

     

     

     

     

     

     

     

    Mutual funds

    207

     

    184

     

    13%

    197

     

    5%

    Insurance and annuity

    240

     

    208

     

    15%

    229

     

    5%

    Other products

    112

     

    156

     

    (28)%

    96

     

    17%

    Total distribution fees

    559

     

    548

     

    2%

    522

     

    7%

    Net investment income

    64

     

    100

     

    (36)%

    66

     

    (3)%

    Other revenues

    56

     

    48

     

    17%

    53

     

    6%

    Total revenues

    1,884

     

    1,720

     

    10%

    1,782

     

    6%

    Banking and deposit interest expense

    5

     

    25

     

    80%

    6

     

    17%

    Adjusted operating total net revenues

    1,879

     

    1,695

     

    11%

    1,776

     

    6%

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

     

     

    Distribution expenses

    1,135

     

    970

     

    (17)%

    1,065

     

    (7)%

    Interest and debt expense

    3

     

    2

     

    (50)%

    2

     

    (50)%

    General and administrative expense

    352

     

    345

     

    (2)%

    357

     

    1%

    Adjusted operating expenses

    1,490

     

    1,317

     

    (13)%

    1,424

     

    (5)%

    Pretax adjusted operating earnings

    $

    389

     

    $

    378

     

    3%

    $

    352

     

    11%

     

     

     

     

     

     

     

     

     

    Pretax adjusted operating margin

    20.7

    %

    22.3

    %

     

    19.8

    %

     

     

     

     

     

     

     

     

     

     

    Pretax adjusted operating earnings by product

     

     

     

     

     

     

     

     

    Certificates and Banking – Combined

    $

    19

     

    $

    17

     

    12%

    $

    21

     

    (10)%

    Wealth Management & Distribution

    370

     

    361

     

    2%

    331

     

    12%

    Pretax adjusted operating earnings

    $

    389

     

    $

    378

     

    3%

    $

    352

     

    11%

     

     

     

     

     

     

     

     

     

    Ameriprise Financial, Inc.

    Advice & Wealth Management Segment Operating Metrics

    (in millions unless otherwise noted, unaudited)

    1 Qtr 2021

    1 Qtr 2020

    % Over/
    (Under)

    4 Qtr 2020

    % Over/
    (Under)

     

     

     

     

     

     

     

     

     

    AWM Total Client Assets

    $

    761,566

     

     

    $

    559,808

     

     

    36%

    $

    732,171

     

     

    4%

     

     

     

     

     

     

     

     

     

    Total Client Flows (1)

    $

    9,305

     

     

    $

    7,675

     

     

    21%

    $

    9,697

     

     

    (4)%

     

     

     

     

     

     

     

     

     

    Total Wrap Accounts

     

     

     

     

     

     

     

     

    Beginning assets

    $

    380,013

     

     

    $

    317,536

     

     

    20%

    $

    339,950

     

     

    12%

    Net flows (2)

    10,413

     

     

    6,712

     

     

    55%

    8,999

     

     

    16%

    Market appreciation (depreciation) and other (2)

    9,391

     

     

    (48,743

    )

     

    NM

    31,064

     

     

    (70)%

    Total wrap ending assets

    $

    399,817

     

     

    $

    275,505

     

     

    45%

    $

    380,013

     

     

    5%

     

     

     

     

     

     

     

     

     

    Advisory wrap account assets ending balance (3)

    $

    395,299

     

     

    $

    272,263

     

     

    45%

    $

    375,657

     

     

    5%

     

     

     

     

     

     

     

     

     

    Brokerage Cash & Certificates Balances

     

     

     

     

     

     

     

     

    On-balance sheet (Net Investment Income)

     

     

     

     

     

     

     

     

    On-balance sheet – broker dealer

    $

    3,385

     

     

    $

    3,517

     

     

    (4)%

    $

    3,487

     

     

    (3)%

    On-balance sheet – bank

    7,985

     

     

    6,160

     

     

    30%

    7,405

     

     

    8%

    On-balance sheet – certificate

    6,258

     

     

    7,336

     

     

    (15)%

    6,760

     

     

    (7)%

    Total on-balance sheet

    $

    17,628

     

     

    $

    17,013

     

     

    4%

    $

    17,652

     

     

    Off-balance sheet (Distribution Fees)

     

     

     

     

     

     

     

     

    Off-balance sheet – broker dealer

    $

    22,733

     

     

    $

    22,988

     

     

    (1)%

    $

    23,842

     

     

    (5)%

    Total brokerage cash & certificates balances

    $

    40,361

     

     

    $

    40,001

     

     

    1%

    $

    41,494

     

     

    (3)%

     

     

     

     

     

     

     

     

     

    Gross Fee Yield

     

     

     

     

     

     

     

     

    On-balance sheet – broker dealer

    0.10

     

    %

    1.17

     

    %

     

    0.11

     

    %

     

    On-balance sheet – bank

    1.37

     

    %

    2.15

     

    %

     

    1.45

     

    %

     

    On-balance sheet – certificates

    1.22

     

    %

    2.43

     

    %

     

    1.32

     

    %

     

    Off-balance sheet – broker dealer

    0.28

     

    %

    1.40

     

    %

     

    0.29

     

    %

     

     

     

     

     

     

     

     

     

     

    Weighted Average Gross Fee Yield

    0.65

     

    %

    1.72

     

    %

     

    0.69

     

    %

     

     

     

     

     

     

     

     

     

     

    Financial Advisors

     

     

     

     

     

     

     

     

    Employee advisors

    2,107

     

    2,102

     

    2,117

     

    Franchisee advisors

    7,924

     

    7,776

     

    2%

    7,805

     

    2%

    Total financial advisors

    10,031

     

    9,878

     

    2%

    9,922

     

    1%

     

     

     

     

     

     

     

     

     

    Advisor Retention

     

     

     

     

     

     

     

     

    Employee

    92.0

     

    %

    90.2

     

    %

     

    92.1

     

    %

     

    Franchisee

    94.4

     

    %

    92.8

     

    %

     

    94.0

     

    %

     

     

     

     

     

     

     

     

     

     

    (1) Total client flows represent inflows of client cash and securities less client outfows. Inflows include dividends and interest; outflows include fees. Excludes short-term and long-term capital gain distributions.

    (2) Beginning in Q1 2021, wrap net flows is calculated including dividends, interest and fees, which were previously recorded in market appreciation (depreciation) and other. Net flows excludes short-term and long-term capital gain distributions. Prior periods have been restated.

    (3) 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)

    1 Qtr 2021

    1 Qtr 2020

    % Over/
    (Under)

    4 Qtr 2020

    % Over/
    (Under)

     

     

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

     

     

    Management and financial advice fees:

     

     

     

     

     

     

     

     

    Asset management fees:

     

     

     

     

     

     

     

     

    Retail

    $

    531

     

     

    $

    447

     

     

    19%

    $

    492

     

     

    8%

    Institutional

    123

     

     

    85

     

     

    45%

    134

     

     

    (8)%

    Transaction and other fees

    52

     

     

    47

     

     

    11%

    51

     

     

    2%

    Revenue from other sources (1)

    7

     

     

    4

     

     

    75%

    4

     

     

    75%

    Total management and financial advice fees

    713

     

     

    583

     

     

    22%

    681

     

     

    5%

    Distribution fees:

     

     

     

     

     

     

     

     

    Mutual funds

    67

     

     

    60

     

     

    12%

    63

     

     

    6%

    Insurance and annuity

    47

     

     

    43

     

     

    9%

    45

     

     

    4%

    Total distribution fees

    114

     

     

    103

     

     

    11%

    108

     

     

    6%

    Net investment income

    1

     

     

     

     

    8

     

     

    (88)%

    Other revenues

     

     

     

     

    1

     

     

    NM

    Total revenues

    828

     

     

    686

     

     

    21%

    798

     

     

    4%

    Banking and deposit interest expense

     

     

     

     

     

     

    Adjusted operating total net revenues

    828

     

     

    686

     

     

    21%

    798

     

     

    4%

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

     

     

    Distribution expenses

    268

     

     

    231

     

     

    (16)%

    254

     

     

    (6)%

    Amortization of deferred acquisition costs

    3

     

     

    3

     

     

    3

     

     

    Interest and debt expense

    1

     

     

    1

     

     

    1

     

     

    General and administrative expense

    328

     

     

    294

     

     

    (12)%

    339

     

     

    3%

    Adjusted operating expenses

    600

     

     

    529

     

     

    (13)%

    597

     

     

    (1)%

    Pretax adjusted operating earnings

    $

    228

     

     

    $

    157

     

     

    45%

    $

    201

     

     

    13%

     

     

     

     

     

     

     

     

     

    Net Pretax Adjusted Operating Margin Reconciliation

     

     

     

     

     

     

     

    Adjusted operating total net revenues

    $

    828

     

     

    $

    686

     

     

    21%

    $

    798

     

     

    4%

    Distribution pass thru revenues

    (217

    )

     

    (186

    )

     

    (17)%

    (205

    )

     

    (6)%

    Subadvisory and other pass thru revenues

    (87

    )

     

    (78

    )

     

    (12)%

    (94

    )

     

    7%

    Net adjusted operating revenues

    $

    524

     

     

    $

    422

     

     

    24%

    $

    499

     

     

    5%

     

     

     

     

     

     

     

     

     

    Pretax adjusted operating earnings

    $

    228

     

     

    $

    157

     

     

    45%

    $

    201

     

     

    13%

    Adjusted operating net investment income

    (1

    )

     

     

     

    (8

    )

     

    88%

    Amortization of intangibles

    3

     

     

    3

     

     

    4

     

     

    (25)%

    Net adjusted operating earnings

    $

    230

     

     

    $

    160

     

     

    44%

    $

    197

     

     

    17%

     

     

     

     

     

     

     

     

     

    Pretax adjusted operating margin

    27.5

     

    %

    22.9

     

    %

     

    25.2

     

    %

     

    Net pretax adjusted operating margin (2)

    43.9

     

    %

    37.9

     

    %

     

    39.5

     

    %

     

     

     

     

     

     

     

     

     

     

    Performance fees (3)

     

     

     

     

     

     

     

     

    Performance fees

    $

    1

     

     

    $

     

     

    $

    17

     

     

    (94)%

    Performance fee related to general and administrative expense

     

     

     

     

    4

     

     

    NM

    Net performance fees

    $

    1

     

     

    $

     

     

    $

    13

     

     

    (92)%

     

     

     

     

     

     

     

     

     

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

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

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

    NM Not Meaningful – variance equal to or greater than 100%.

    Ameriprise Financial, Inc.

    Asset Management Segment Operating Metrics

    (in millions, unaudited)

    1 Qtr 2021

    1 Qtr 2020

    % Over/
    (Under)

    4 Qtr 2020

    % Over/
    (Under)

     

     

     

     

     

     

     

     

     

    Total Managed Assets by Type

     

     

     

     

     

     

     

     

    Equity

    $

    319,446

     

     

    $

    210,463

     

     

    52%

    $

    302,563

     

     

    6%

    Fixed income

    195,020

     

     

    174,012

     

     

    12%

    196,501

     

     

    (1)%

    Money market

    5,766

     

     

    4,947

     

     

    17%

    5,899

     

     

    (2)%

    Alternative

    3,841

     

     

    2,745

     

     

    40%

    3,623

     

     

    6%

    Hybrid and other

    40,058

     

     

    33,996

     

     

    18%

    38,027

     

     

    5%

    Total managed assets by type

    $

    564,131

     

     

    $

    426,163

     

     

    32%

    $

    546,613

     

     

    3%

     

     

     

     

     

     

     

     

     

    Average Managed Assets by Type (1)

     

     

     

     

     

     

     

     

    Equity

    $

    308,816

     

     

    $

    246,757

     

     

    25%

    $

    279,128

     

     

    11%

    Fixed income

    195,823

     

     

    181,159

     

     

    8%

    192,196

     

     

    2%

    Money market

    5,921

     

     

    4,745

     

     

    25%

    5,397

     

     

    10%

    Alternative

    3,775

     

     

    3,030

     

     

    25%

    3,512

     

     

    7%

    Hybrid and other

    39,212

     

     

    35,397

     

     

    11%

    36,748

     

     

    7%

    Total average managed assets by type

    $

    553,547

     

     

    $

    471,088

     

     

    18%

    $

    516,981

     

     

    7%

     

     

     

     

     

     

     

     

     

    Managed Assets Rollforward

     

     

     

     

     

     

     

     

    Global Retail Funds

     

     

     

     

     

     

     

     

    Beginning assets

    $

    323,483

     

     

    $

    287,452

     

     

    13%

    $

    289,922

     

     

    12%

    Inflows

    22,549

     

     

    17,371

     

     

    30%

    16,922

     

     

    33%

    Outflows

    (17,637

    )

     

    (20,028

    )

     

    12%

    (14,518

    )

     

    (21)%

    Net VP/VIT fund flows

    (1,019

    )

     

    (737

    )

     

    (38)%

    (840

    )

     

    (21)%

    Net new flows

    3,893

     

     

    (3,394

    )

     

    NM

    1,564

     

     

    NM

    Reinvested dividends

    717

     

     

    502

     

     

    43%

    6,219

     

     

    (88)%

    Net flows

    4,610

     

     

    (2,892

    )

     

    NM

    7,783

     

     

    (41)%

    Distributions

    (858

    )

     

    (669

    )

     

    (28)%

    (7,088

    )

     

    88%

    Market appreciation (depreciation) and other

    13,187

     

     

    (43,485

    )

     

    NM

    30,847

     

     

    (57)%

    Foreign currency translation (2)

    (152

    )

     

    (1,368

    )

     

    89%

    2,019

     

     

    NM

    Total ending assets

    340,270

     

     

    239,038

     

     

    42%

    323,483

     

     

    5%

    % of total retail assets sub-advised

    16.4

     

    %

    19.2

     

    %

     

    17.7

     

    %

     

     

     

     

     

     

     

     

     

     

    Global Institutional

     

     

     

     

     

     

     

     

    Beginning assets

    223,130

     

     

    206,729

     

     

    8%

    208,082

     

     

    7%

    Inflows (3)

    7,741

     

     

    8,561

     

     

    (10)%

    5,378

     

     

    44%

    Outflows (3)

    (7,462

    )

     

    (8,028

    )

     

    7%

    (6,177

    )

     

    (21)%

    Net flows

    279

     

     

    533

     

     

    (48)%

    (799

    )

     

    NM

    Market appreciation (depreciation) and other (4)

    176

     

     

    (16,698

    )

     

    NM

    11,388

     

     

    (98)%

    Foreign currency translation (2)

    276

     

     

    (3,439

    )

     

    NM

    4,459

     

     

    (94)%

    Total ending assets

    223,861

     

     

    187,125

     

     

    20%

    223,130

     

     

     

     

     

     

     

     

     

     

     

    Total managed assets

    $

    564,131

     

     

    $

    426,163

     

     

    32%

    $

    546,613

     

     

    3%

     

     

     

     

     

     

     

     

     

    Total net flows

    $

    4,889

     

     

    $

    (2,359

    )

     

    NM

    $

    6,984

     

     

    (30)%

     

     

     

     

     

     

     

     

     

    Legacy insurance partners flows

    $

    (1,262

    )

     

    $

    (602

    )

     

    NM

    $

    (1,350

    )

     

    7%

     

     

     

     

     

     

     

     

     

    Total Assets Under Advisement (5)

    $

    16,036

     

     

    $

    12,796

     

     

    25%

    $

    13,929

     

     

    15%

    Model delivery AUA flows (6)

    $

    294

     

     

    $

    66

     

     

    NM

    $

    226

     

     

    30%

     

     

     

     

     

     

     

     

     

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

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

    (3) Global Institutional inflows and outflows include net flows from our RiverSource Structured Annuity product beginning in Q1 2020 and Ameriprise Bank, FSB beginning in Q1 2021.

    (4) 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 beginning in Q1 2020 and Ameriprise Bank, FSB beginning in Q1 2021.

    (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 Performance Metrics

     

    1 Qtr 2021

     

     

     

     

     

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

    1 year

    3 year

    5 year

    10 year

    Equity

    60%

    87%

    81%

    88%

    Fixed Income

    80%

    69%

    88%

    89%

    Asset Allocation

    31%

    88%

    95%

    89%

     

     

     

     

     

    4- or 5-star Morningstar rated funds

    Overall

    3 year

    5 year

    10 year

    Number of Rated Funds

    103

    92

    92

    89

    Percent of Rated Assets

    68%

    61%

    58%

    72%

     

     

     

     

     

    Retail Fund performance rankings for each fund is measured on a consistent basis against the most appropriate peer group or index. Peer Groupings are defined by either Lipper, IA, or Morningstar and based primarily on the Institutional Share Class, Net of Fees. 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.

     

     

     

     

     

    Ameriprise Financial, Inc.

    Retirement & Protection Solutions Segment (1) Adjusted Operating Results

    (in millions, unaudited)

    1 Qtr 2021

     

    1 Qtr 2020

    % Over/
    (Under)

    4 Qtr 2020

    % Over/
    (Under)

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

    222

     

     

    $

    199

     

    12%

    $

    219

     

    1%

    Distribution fees

    116

     

     

    105

     

    10%

    115

     

    1%

    Net investment income

    126

     

     

    130

     

    (3)%

    128

     

    (2)%

    Premiums, policy and contract charges

    323

     

     

    325

     

    (1)%

    337

     

    (4)%

    Other revenues

     

     

     

     

    Total revenues

    787

     

     

    759

     

    4%

    799

     

    (2)%

    Banking and deposit interest expense

     

     

     

     

    Adjusted operating total net revenues

    787

     

     

    759

     

    4%

    799

     

    (2)%

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

    129

     

     

    110

     

    (17)%

    124

     

    (4)%

    Interest credited to fixed accounts

    96

     

     

    100

     

    4%

    97

     

    1%

    Benefits, claims, losses and settlement expenses

    234

     

     

    245

     

    4%

    253

     

    8%

    Amortization of deferred acquisition costs

    63

     

     

    54

     

    (17)%

    59

     

    (7)%

    Interest and debt expense

    10

     

     

    10

     

    11

     

    9%

    General and administrative expense

    72

     

     

    73

     

    1%

    75

     

    4%

    Adjusted operating expenses

    604

     

     

    592

     

    (2)%

    619

     

    2%

    Pretax adjusted operating earnings

    $

    183

     

     

    $

    167

     

    10%

    $

    180

     

    2%

     

     

     

     

     

     

     

    (1) Retirement & Protection Solutions segment includes Retirement Solutions (Variable Annuities and Payout Annuities) and Protection Solutions (Life and Disability Insurance). Fixed Annuities moved to the Corporate & Other segment in Q3 2020 as a closed block. Prior periods have been restated.

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

    Ameriprise Financial, Inc.

    Retirement & Protection Solutions Segment Operating Metrics

    (in millions, unaudited)

    1 Qtr 2021

     

    1 Qtr 2020

    % Over/
    (Under)

    4 Qtr 2020

    % Over/
    (Under)

     

     

     

     

     

     

     

    Variable Annuities Rollforwards

     

     

     

     

     

     

    Beginning balance

    $

    85,774

     

     

    $

    80,068

     

    7%

    $

    79,846

     

    7%

    Deposit

    1,428

     

     

    1,072

     

    33%

    1,327

     

    8%

    Withdrawals and terminations

    (1,984

    )

     

    (1,784

    )

    (11)%

    (1,786

    )

    (11)%

    Net flows

    (556

    )

     

    (712

    )

    22%

    (459

    )

    (21)%

    Investment performance and interest credited

    1,746

     

     

    (9,397

    )

    NM

    6,387

     

    (73)%

    Other

     

     

     

     

    Total ending balance – contract accumulation values

    $

    86,964

     

     

    $

    69,959

     

    24%

    $

    85,774

     

    1%

     

     

     

     

     

     

     

    Variable annuities fixed sub-accounts

    $

    5,075

     

     

    $

    5,125

     

    (1)%

    $

    5,104

     

    (1)%

     

     

     

     

     

     

     

    Payout Annuities Reserve Balance

    $

    1,908

     

     

    $

    2,037

     

    (6)%

    $

    1,948

     

    (2)%

     

     

     

     

     

     

     

    Life Insurance In Force

    $

    196,164

     

     

    $

    194,617

     

    1%

    $

    195,750

     

     

     

     

     

     

     

     

    Net Amount at Risk (Life)

    $

    37,636

     

     

    $

    40,075

     

    (6)%

    $

    37,817

     

     

     

     

     

     

     

     

    Net Policyholder Reserves

     

     

     

     

     

     

    VUL/UL

    $

    14,106

     

     

    $

    11,224

     

    26%

    $

    13,738

     

    3%

    Term and whole life

    172

     

     

    180

     

    (4)%

    174

     

    (1)%

    Disability insurance

    503

     

     

    508

     

    (1)%

    504

     

    Other insurance

    637

     

     

    668

     

    (5)%

    643

     

    (1)%

    Total net policyholder reserves

    $

    15,418

     

     

    $

    12,580

     

    23%

    $

    15,059

     

    2%

     

     

     

     

     

     

     

    DAC Ending Balances

     

     

     

     

     

     

    Variable Annuities DAC

    $

    1,792

     

     

    $

    1,397

     

    28%

    $

    1,711

     

    5%

    Life and Health DAC

    $

    839

     

     

    $

    894

     

    (6)%

    $

    766

     

    10%

     

     

     

     

     

     

     

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

    Ameriprise Financial, Inc.

    Corporate Segment Adjusted Operating Results and Metrics

    (in millions, unaudited)

    1 Qtr 2021

     

    1 Qtr 2020

    % Over/
    (Under)

    4 Qtr 2020

    % Over/
    (Under)

     

     

     

     

     

     

     

    Corporate Excluding Long Term Care and Fixed Annuities Adjusted Operating Income Statements

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

     

     

    $

     

    $

     

    Distribution fees

     

     

     

     

    Net investment income

    (1

    )

     

    (10

    )

    90%

    (13

    )

    92%

    Premiums, policy and contract charges

     

     

     

     

    Other revenues

    1

     

     

    6

     

    (83)%

    2

     

    (50)%

    Total revenues

     

     

    (4

    )

    NM

    (11

    )

    NM

    Banking and deposit interest expense

     

     

    1

     

    NM

    1

     

    NM

    Adjusted operating total net revenues

     

     

    (5

    )

    NM

    (12

    )

    NM

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

     

     

     

     

    Interest credited to fixed accounts

     

     

     

     

    Benefits, claims, losses and settlement expenses

     

     

     

    (1

    )

    NM

    Amortization of deferred acquisition costs

     

     

     

     

    Interest and debt expense

    7

     

     

    9

     

    22%

    10

     

    30%

    General and administrative expense

    56

     

     

    38

     

    (47)%

    58

     

    3%

    Adjusted operating expenses

    63

     

     

    47

     

    (34)%

    67

     

    6%

    Pretax adjusted operating earnings (loss)

    $

    (63

    )

     

    $

    (52

    )

    (21)%

    $

    (79

    )

    20%

     

     

     

     

     

     

     

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

     

     

     

     

     

     

    Ameriprise Financial, Inc.

    Corporate Segment Adjusted Operating Results and Metrics

    (in millions, unaudited)

    1 Qtr 2021

     

    1 Qtr 2020

    % Over/
    (Under)

    4 Qtr 2020

    % Over/
    (Under)

     

     

     

     

     

     

     

    Long Term Care Adjusted Operating Income Statements

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

     

     

    $

     

    $

     

    Distribution fees

     

     

     

     

    Net investment income

    38

     

     

    42

     

    (10)%

    38

     

    Premiums, policy and contract charges

    24

     

     

    25

     

    (4)%

    26

     

    (8)%

    Other revenues

     

     

     

     

    Total revenues

    62

     

     

    67

     

    (7)%

    64

     

    (3)%

    Banking and deposit interest expense

     

     

     

     

    Adjusted operating total net revenues

    62

     

     

    67

     

    (7)%

    64

     

    (3)%

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

    (3

    )

     

    (2

    )

    50%

    (3

    )

    Interest credited to fixed accounts

     

     

     

     

    Benefits, claims, losses and settlement expenses

    11

     

     

    57

     

    81%

    39

     

    72%

    Amortization of deferred acquisition costs

     

     

     

     

    Interest and debt expense

    3

     

     

    3

     

    1

     

    NM

    General and administrative expense

    5

     

     

    7

     

    29%

    6

     

    17%

    Adjusted operating expenses

    16

     

     

    65

     

    75%

    43

     

    63%

    Pretax adjusted operating earnings (loss)

    $

    46

     

     

    $

    2

     

    NM

    $

    21

     

    NM

     

     

     

     

     

     

     

    Long Term Care Policyholder Reserves, net of reinsurance (1)

     

     

     

     

     

     

    Active Life Reserves

    $

    2,431

     

     

    $

    2,061

     

    18%

    $

    2,539

     

    (4)%

    Disabled Life Reserves

    540

     

     

    574

     

    (6)%

    564

     

    (4)%

    Total long term care policyholder reserves, net of reinsurance

    $

    2,971

     

     

    $

    2,635

     

    13%

    $

    3,103

     

    (4)%

     

     

     

     

     

     

     

    (1) SFAS 115 requires GAAP reserves to include all unrealized gains on available for sale securities in the portfolio to be reported as if they were realized on the last day of the accounting period with all financial impacts flowing through other comprehensive income.

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

    Ameriprise Financial, Inc.

    Corporate Segment (1) Adjusted Operating Results and Metrics

    (in millions, unaudited)

    1 Qtr 2021

    1 Qtr 2020

    % Over/
    (Under)

    4 Qtr 2020

    % Over/
    (Under)

     

     

     

     

     

     

     

     

     

    Fixed Annuities Adjusted Operating Income Statements

     

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

     

     

    Management and financial advice fees

    $

     

     

    $

     

     

    $

     

     

    Distribution fees

     

     

     

     

     

     

    Net investment income

    63

     

     

    72

     

     

    (13)%

    67

     

     

    (6)%

    Premiums, policy and contract charges

     

     

     

     

     

     

    Other revenues

    14

     

     

    15

     

     

    (7)%

    15

     

     

    (7)%

    Total revenues

    77

     

     

    87

     

     

    (11)%

    82

     

     

    (6)%

    Banking and deposit interest expense

     

     

     

     

     

     

    Adjusted operating total net revenues

    77

     

     

    87

     

     

    (11)%

    82

     

     

    (6)%

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

     

     

    Distribution expenses

    1

     

     

    1

     

     

    1

     

     

    Interest credited to fixed accounts

    61

     

     

    66

     

     

    8%

    65

     

     

    6%

    Benefits, claims, losses and settlement expenses

    2

     

     

    2

     

     

    1

     

     

    NM

    Amortization of deferred acquisition costs

    4

     

     

    2

     

     

    NM

    3

     

     

    (33)%

    Interest and debt expense

    5

     

     

    7

     

     

    29%

    5

     

     

    General and administrative expense

    8

     

     

    9

     

     

    11%

    9

     

     

    11%

    Adjusted operating expenses

    81

     

     

    87

     

     

    7%

    84

     

     

    4%

    Pretax adjusted operating earnings (loss)

    $

    (4

    )

     

    $

     

     

    $

    (2

    )

     

    NM

     

     

     

     

     

     

     

     

     

    Fixed Deferred Annuities – ending balance – contract accumulation values

    $

    7,850

     

     

    $

    8,165

     

     

    (4)%

    $

    7,964

     

     

    (1)%

     

     

     

     

     

     

     

     

     

    Tax Equivalent Spread – Fixed Deferred Annuities (2)

     

     

     

     

     

     

     

     

    Gross rate of return of invested assets

    3.1

     

    %

    3.7

     

    %

     

    3.3

     

    %

     

    Crediting rate excluding capitalized interest

    (3.3

    )

    %

    (3.3

    )

    %

     

    (3.3

    )

    %

     

    Tax equivalent margin spread

    (0.2

    )

    %

    0.4

     

    %

     

     

    %

     

     

     

     

     

     

     

     

     

     

    Fixed Deferred Annuities DAC Ending Balance

    $

    48

     

     

    $

    68

     

     

    (29)%

    $

    50

     

     

    (4)%

     

     

     

     

     

     

     

     

     

    (1) Fixed annuities was moved into the Corporate & Other segment as a closed block. Prior periods have been restated.

    (2) Attributable to interest sensitive products only, which has been approximately 99% of the total ending fixed deferred annuities accumulation values in the periods reported. The asset earnings rate is a calculated yield based on specifically assigned assets.

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

    Ameriprise Financial, Inc.

    Eliminations (1) Adjusted Operating Results

    (in millions, unaudited)

    1 Qtr 2021

     

    1 Qtr 2020

    % Over/
    (Under)

    4 Qtr 2020

    % Over/
    (Under)

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

    (36

    )

     

    $

    (35

    )

    (3)%

    $

    (36

    )

    Distribution fees

    (331

    )

     

    (292

    )

    (13)%

    (323

    )

    (2)%

    Net investment income

    (4

    )

     

    (4

    )

    (5

    )

    20%

    Premiums, policy and contract charges

    (8

    )

     

    (8

    )

    (8

    )

    Other revenues

     

     

     

     

    Total revenues

    (379

    )

     

    (339

    )

    (12)%

    (372

    )

    (2)%

    Banking and deposit interest expense

     

     

    (1

    )

    NM

    (1

    )

    NM

    Adjusted operating total net revenues

    (379

    )

     

    (338

    )

    (12)%

    (371

    )

    (2)%

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

    (355

    )

     

    (315

    )

    13%

    (345

    )

    3%

    Interest credited to fixed accounts

     

     

     

     

    Benefits, claims, losses and settlement expenses

    (4

    )

     

    (5

    )

    (20)%

    (5

    )

    (20)%

    Amortization of deferred acquisition costs

     

     

     

     

    Interest and debt expense

    (3

    )

     

    (3

    )

    (4

    )

    (25)%

    General and administrative expense

    (17

    )

     

    (15

    )

    13%

    (17

    )

    Adjusted operating expenses

    (379

    )

     

    (338

    )

    12%

    (371

    )

    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)

    March 31,
    2021

    March 31,
    2020

    December 31,
    2020

     

     

     

     

     

     

     

    Long-term Debt Summary

     

     

     

     

     

     

    Senior notes (1)

    $

    2,800

     

     

    $

    2,300

     

     

    $

    2,800

     

     

    Finance lease liabilities

    46

     

     

    54

     

     

    44

     

     

                       

    Fair value of hedges, unamortized discount and debt issuance costs

    (12

    )

     

    (10

    )

     

    (13

    )

     

    Total Ameriprise Financial long-term debt

    2,834

     

     

    2,344

     

     

    2,831

     

     

    Non-recourse debt of consolidated investment entities

    2,671

     

     

    1,376

     

     

    1,913

     

     

    Total long-term debt

    $

    5,505

     

     

    $

    3,720

     

     

    $

    4,744

     

     

     

     

     

     

     

     

     

    Total Ameriprise Financial long-term debt

    $

    2,834

     

     

    $

    2,344

     

     

    $

    2,831

     

     

                             

    Fair value of hedges, unamortized discount and debt issuance costs

    12

     

     

    10

     

     

    13

     

     

    Finance lease liabilities

    (46

    )

     

    (54

    )

     

    (44

    )

     

    Total Ameriprise Financial long-term debt excluding fair value of hedges, unamortized discount, debt issuance costs and finance lease liabilities

    $

    2,800

     

     

    $

    2,300

     

     

    $

    2,800

     

     

     

     

     

     

     

     

     

    Total equity (2)

    $

    5,502

     

     

    $

    6,693

     

     

    $

    5,867

     

     

    Equity of consolidated investment entities

    (1

    )

     

    (2

    )

     

    (3

    )

     

    Total equity excluding CIEs

    $

    5,501

     

     

    $

    6,691

     

     

    $

    5,864

     

     

     

     

     

     

     

     

     

    Total Ameriprise Financial capital

    $

    8,334

     

     

    $

    9,037

     

     

    $

    8,698

     

     

    Total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, debt issuance costs, finance lease liabilities and equity of CIEs

    $

    8,299

     

     

    $

    8,991

     

     

    $

    8,664

     

     

     

     

     

     

     

     

     

    Debt to capital

     

     

     

     

     

     

    Total Ameriprise Financial long-term debt to total Ameriprise Financial capital (1)

    34.0

     

    %

    25.9

     

    %

    32.5

     

    %

    Total Ameriprise Financial long-term debt to total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, best issuance costs, finance lease liabilities and equity of CIEs (1)(2)

    33.7

     

    %

    25.6

     

    %

    32.3

     

    %

     

     

     

     

     

     

     

    (1) The first quarter of 2020 does not include $500 million of debt issuance that settled on April 2, 2020.

     

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

     

    Ameriprise Financial, Inc.

    Consolidated Balance Sheets

    (in millions, unaudited)

    March 31,
    2021

     

    December 31,
    2020

     

     

     

     

    Assets

     

     

     

    Cash and cash equivalents

    $

    5,462

     

     

    $

    6,751

     

    Cash of consolidated investment entities

    325

     

     

    94

     

    Investments

    40,437

     

     

    41,031

     

    Investments of consolidated investment entities

    2,642

     

     

    1,918

     

    Separate account assets

    93,483

     

     

    92,611

     

    Receivables

    8,038

     

     

    7,819

     

    Receivables of consolidated investment entities

    17

     

     

    16

     

    Deferred acquisition costs

    2,685

     

     

    2,532

     

    Restricted and segregated cash and investments

    2,564

     

     

    2,558

     

    Other assets

    10,082

     

     

    10,551

     

    Other assets of consolidated investment entities

    2

     

     

    2

     

    Total Assets

    $

    165,737

     

     

    $

    165,883

     

     

     

     

     

    Liabilities

     

     

     

    Policyholder account balances, future policy benefits and claims

    $

    32,702

     

     

    $

    33,992

     

    Separate account liabilities

    93,483

     

     

    92,611

     

    Customer deposits

    17,619

     

     

    17,641

     

    Short-term borrowings

    200

     

     

    200

     

    Long-term debt

    2,834

     

     

    2,831

     

    Debt of consolidated investment entities

    2,671

     

     

    1,913

     

    Accounts payable and accrued expenses

    1,832

     

     

    1,998

     

    Other liabilities

    8,638

     

     

    8,737

     

    Other liabilities of consolidated investment entities

    256

     

     

    93

     

    Total Liabilities

    160,235

     

     

    160,016

     

     

     

     

     

    Equity

     

     

     

    Ameriprise Financial

     

     

     

    Common shares ($.01 par)

    3

     

     

    3

     

    Additional paid-in capital

    8,982

     

     

    8,822

     

    Retained earnings

    15,600

     

     

    15,292

     

    Treasury stock

    (19,400

    )

     

    (18,879

    )

    Accumulated other comprehensive income, net of tax

    317

     

     

    629

     

    Total Equity

    5,502

     

     

    5,867

     

    Total Liabilities and Equity

    $

    165,737

     

     

    $

    165,883

     

     

     

     

     

    Ameriprise Financial, Inc.

    Disclosed Items – Included in Adjusted Operating Earnings

    (in millions, unaudited)

     

    1 Qtr 2021

     

     

     

     

     

    Corporate

     

     

    Gain on
    Investment (1)

    Revenues

     

     

    Management and financial advice fees

     

    $

     

    Distribution fees

     

     

    Net investment income

     

    15

     

    Premiums, policy and contract charges

     

     

    Other revenues

     

     

    Total revenues

     

    15

     

    Banking and deposit interest expense

     

     

    Adjusted operating total net revenues

     

    15

     

     

     

     

    Expenses

     

     

    Distribution expenses

     

     

    Interest credited to fixed accounts

     

     

    Benefits, claims, losses and settlement expenses

     

     

    Amortization of deferred acquisition costs

     

     

    Interest and debt expense

     

     

    General and administrative expense

     

     

    Adjusted operating expenses

     

     

    Pretax adjusted operating earnings (loss)

     

    $

    15

     

     

     

     

    (1) Gain on strategic investment.

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Earnings

     

    Quarter Ended
    March 31,

     

    Per Diluted Share
    Quarter Ended
    March 31,

     

    % Over/
    (Under)

    (in millions, except per share amounts, unaudited)

    2021

     

    2020

     

    2021

     

    2020

     

    Net income

    $

    437

     

     

    $

    2,036

     

     

    $

    3.58

     

     

    $

    15.88

     

     

    (77)%

    Less: Net realized investment gains (losses) (1)

    55

     

     

    (20

    )

     

    0.45

     

     

    (0.16

    )

     

     

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

    396

     

     

    (1,783

    )

     

    3.24

     

     

    (13.91

    )

     

     

    Add: Mean reversion-related impacts (1)

    (56

    )

     

    61

     

     

    (0.46

    )

     

    0.47

     

     

     

    Add: Market impact of hedges on investments (1)

     

     

     

     

     

     

     

     

     

    Add: Integration/restructuring charges (1)

     

     

    1

     

     

     

     

    0.01

     

     

     

    Less: Net income (loss) attributable to consolidated investment entities

    (1

    )

     

    (2

    )

     

    (0.01

    )

     

    (0.02

    )

     

     

    Add: Tax effect of adjustments (2)

    (60

    )

     

    357

     

     

    (0.49

    )

     

    2.78

     

     

     

    Adjusted operating earnings

    $

    663

     

     

    $

    694

     

     

    $

    5.43

     

     

    $

    5.41

     

     

    Less: NOL tax benefit

     

     

    144

     

     

     

     

    1.12

     

     

     

                                       

    Adjusted operating earnings excluding NOL tax benefit

    $

    663

     

     

    $

    550

     

     

    $

    5.43

     

     

    $

    4.29

     

     

    27%

     

     

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding:

     

     

     

     

     

     

     

     

     

    Basic

    119.8

     

     

    126.4

     

     

     

     

     

     

     

    Diluted

    122.2

     

     

    128.2

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (1) Pretax adjusted operating adjustment.

     

     

     

     

     

     

     

     

     

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

    Ameriprise Financial, Inc.

    Reconciliation Table: Pretax Adjusted Operating Earnings and Pretax Adjusted Operating Margin

     

    Quarter Ended
    March 31,

     

    (in millions, unaudited)

    2021

     

    2020

     

    Total net revenues

    $

    3,350

     

     

    $

    3,001

     

     

    Less: Net realized investment gains (losses)

    57

     

     

    (20

    )

     

    Less: Market impact on non-traditional long-duration products

    5

     

     

    55

     

     

    Less: Mean Reversion related impacts

     

     

    (1

    )

     

    Less: Market impact of hedges on investments

     

     

     

     

    Less: Integration/restructuring charges

     

     

     

     

    Less: CIEs revenue

    34

     

     

    16

     

     

    Adjusted operating total net revenues

    $

    3,254

     

     

    $

    2,951

     

     

     

     

     

     

     

    Total expenses

    $

    2,857

     

     

    $

    650

     

     

    Less: CIEs expenses

    35

     

     

    18

     

     

    Less: Integration/restructuring charges

     

     

    1

     

     

    Less: Market impact on non-traditional long-duration products

    401

     

     

    (1,728

    )

     

    Less: Mean reversion-related impacts

    (56

    )

     

    60

     

     

    Less: DAC/DSIC offset to net realized investment gains (losses)

    2

     

     

     

     

    Adjusted operating expenses

    $

    2,475

     

     

    $

    2,299

     

     

     

     

     

     

     

    Pretax income

    $

    493

     

     

    $

    2,351

     

     

    Pretax adjusted operating earnings

    $

    779

     

     

    $

    652

     

     

     

     

     

     

     

    Pretax income margin

    14.7

     

    %

    78.3

     

    %

    Pretax adjusted operating margin

    23.9

     

    %

    22.1

     

    %

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: General and Administrative Expense

     

    Quarter Ended
    March 31,

    % Over/
    (Under)

    (in millions, unaudited)

    2021

     

    2020

    General and administrative expense

    $

    823

     

     

    $

    753

     

    (9)%

    Less: CIEs expenses

    19

     

     

    1

     

     

    Less: Integration/restructuring charges

     

     

    1

     

     

    Adjusted operating general and administrative expense

    $

    804

     

     

    $

    751

     

    (7)%

    Less: Share-based compensation

    17

     

     

    (17

    )

     

    Adjusted operating general and administrative expense excluding share-based compensation

    $

    787

     

     

    $

    768

     

    (2)%

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Effective Tax Rate

     

    Quarter Ended
    March 31, 2020

     

    (in millions, unaudited)

    GAAP

     

    Adjusted Operating

    Pretax income

    $

    2,351

     

    $

    652

     

     

    Income tax provision

    $

    315

     

    $

    (42

    )

     

     

     

     

     

     

    Effective tax rate

    13.4

    %

    (6.4

    )

    %

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Effective Tax Rate

     

    Quarter Ended
    March 31, 2021

     

    (in millions, unaudited)

    GAAP

     

    Adjusted Operating

    Pretax income

    $

    493

     

    $

    779

     

     

    Income tax provision

    $

    56

     

    $

    116

     

     

     

     

     

     

     

    Effective tax rate

    11.3

    %

    14.9

     

    %

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Operating Revenues and Earnings

     

    Quarter Ended
    March 31,

     

    % Over/
    (Under)

    (in millions, unaudited)

    2021

     

    2020

     

    Ameriprise Financial, Inc. Net revenues

    $

    3,254

     

     

    $

    2,951

     

     

    10%

    Less: Short-Term interest rate impact

     

     

    78

     

     

     

    Ameriprise Financial, Inc. Net revenues excluding Short-Term interest rate impact

    $

    3,254

     

     

    $

    2,873

     

     

    13%

     

     

     

     

     

     

    Ameriprise Financial, Inc. Pretax operating earnings

    $

    779

     

     

    $

    652

     

     

    19%

    Less: Short-Term interest rate impact

     

     

    78

     

     

     

    Ameriprise Financial, Inc. Pretax operating earnings excluding Short-Term interest rate impact

    $

    779

     

     

    $

    574

     

     

    36%

     

     

     

     

     

     

    AWM Net revenues

    $

    1,879

     

     

    $

    1,695

     

     

    11%

    Less: Short-Term interest rate impact

     

     

    78

     

     

     

    AWM Net revenues excluding Short-Term interest rate impact

    $

    1,879

     

     

    $

    1,617

     

     

    16%

     

     

     

     

     

     

    AWM Pretax operating earnings

    $

    389

     

     

    $

    378

     

     

    3%

    Less: Short-Term interest rate impact

     

     

    78

     

     

     

    AWM Pretax operating earnings excluding Short-Term interest rate impact

    $

    389

     

     

    $

    300

     

     

    30%

     

     

     

     

     

     

    Pretax Adjusted operating margin excluding Short-Term Interest rate impact

    20.7

     

    %

    18.6

     

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Advice & Wealth Management Adjusted Revenue Per Advisor

    (unaudited)

    2Q
    2019

    3Q
    2019

    4Q
    2019

    1Q
    2020

    2Q
    2020

    3Q
    2020

    4Q
    2020

    1Q
    2021

    % Over/
    (Under)

    Total Net Revenue ($ in M)

    $

    1,653

     

    $

    1,682

     

    $

    1,710

     

    $

    1,695

     

    $

    1,537

     

    $

    1,667

     

    $

    1,776

     

    $

    1,879

     

     

    Interest Revenue ($ in M)

    $

    (122

    )

    $

    (116

    )

    $

    (92

    )

    $

    (78

    )

    $

     

    $

     

    $

     

    $

     

     

     

     

     

     

     

     

     

     

     

     

    Advisor Count

    9,951

    9,930

    9,871

    9,878

    9,894

    9,905

    9,922

    10,031

     

     

     

     

     

     

     

     

     

     

     

    Revenue Per Advisor ($ in K)

    $

    166

     

    $

    169

     

    $

    173

     

    $

    172

     

    $

    155

     

    $

    168

     

    $

    179

     

    $

    187

     

    9%

    Revenue Per Advisor excluding short-term interest rate impact ($ in K)

    $

    154

     

    $

    158

     

    $

    164

     

    $

    164

     

    $

    155

     

    $

    168

     

    $

    179

     

    $

    187

     

    14%

     

     

     

     

     

     

     

     

     

     

    Revenue Per Advisor TTM ($ in K)

     

     

     

    $

    680

     

     

     

     

    $

    689

     

    1%

    Revenue Per Advisor excluding short-term interest rate impact TTM ($ in K)

     

     

     

    $

    640

     

     

     

     

    $

    689

     

    8%

     

     

     

     

     

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Return on Equity (ROE) Excluding Accumulated Other Comprehensive Income “AOCI”

     

    Twelve Months Ended
    March 31,

     

    (in millions, unaudited)

    2021

     

    2020

     

    Net income

    $

    (65

    )

     

    $

    3,534

     

     

    Less: Adjustments (1)

    (1,804

    )

     

    1,175

     

     

    Adjusted operating earnings

    $

    1,739

     

     

    $

    2,359

     

     

     

     

     

     

     

    Total Ameriprise Financial, Inc. shareholders’ equity

    $

    6,126

     

     

    $

    6,058

     

     

    Less: Accumulated other comprehensive income, net of tax

    312

     

     

    121

     

     

    Total Ameriprise Financial, Inc. shareholders’ equity excluding AOCI

    5,814

     

     

    5,937

     

     

    Less: Equity impacts attributable to the consolidated investment entities

    1

     

     

    1

     

     

    Adjusted operating equity

    $

    5,813

     

     

    $

    5,936

     

     

     

     

     

     

     

    Return on equity excluding AOCI

    (1.1

    )

    %

    59.5

     

    %

    Adjusted operating return on equity excluding AOCI (2)

    29.9

     

    %

    39.7

     

    %

     

     

     

     

     

    (1) Adjustments reflect the trailing twelve months’ sum of after-tax net realized investment gains/losses, net of deferred sales inducement costs (“DSIC”) and deferred acquisition costs (“DAC”) amortization, unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long-duration products, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; mean reversion related impacts; gain on disposal of business; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration/restructuring charges; and the impact of consolidating certain investment entities. After-tax is calculated using the statutory tax rate of 21%.

    (2) Adjusted operating return on equity excluding accumulated other comprehensive income (AOCI) is calculated using the trailing twelve months of earnings excluding the after-tax net realized investment gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long-duration products, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; mean reversion related impacts; gain on the disposal of business; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration/restructuring charges; the impact of consolidating certain investment entities; and discontinued operations in the numerator, and Ameriprise Financial shareholders’ equity excluding AOCI and the impact of consolidating investment entities using a five-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory tax rate of 21%.

     

    Contacts

    Investor Relations:
    Alicia A. Charity
    Ameriprise Financial
    (612) 671-2080
    alicia.a.charity@ampf.com
     
    Stephanie M. Rabe
    Ameriprise Financial
    (612) 671-4085
    stephanie.m.rabe@ampf.com
     
    Media Relations:
    Paul W. Johnson
    Ameriprise Financial
    (612) 671-0625
    paul.w.johnson@ampf.com

    MINNEAPOLIS–(BUSINESS WIRE)–Ameriprise Financial, Inc. (NYSE: AMP):

    Earnings Per Diluted Share

     

    Return on Equity, ex AOCI (1)

     

    Q1 2021

     

     

    Q1 2021

    GAAP

    $3.58

     

    GAAP

    (1.1)%

    Adjusted Operating

    $5.43

     

    Adjusted Operating

    29.9%

    Ameriprise increased its quarterly dividend 9 percent to $1.13 per share

    • First quarter adjusted operating earnings per diluted share was $5.43. The prior year period included a tax benefit from a projected net operating loss (NOL) of $1.12 per diluted share. Excluding this impact, adjusted operating EPS increased 27 percent from $4.29 reflecting strong business growth.

     

    Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer

     

     

    “Ameriprise delivered an excellent first quarter, building on our momentum from 2020. We continue to execute our strategy well, invest for business growth and deliver meaningful results. And, as economies reopen globally and activity increases, there’s a large and growing opportunity to help more consumers and institutions achieve their goals.

     

    “Our priority is to deliver a differentiated client experience and reach more people through our leading advice value proposition at Ameriprise, as well as through the broad capabilities and perspective at Columbia Threadneedle. This consistent focus is resulting in strong organic growth, including generating more than $14 billion of client net inflows in the quarter.

     

    “As we recently announced, we will be complementing our growth with the strategic acquisition of BMO’s EMEA asset management business. This will increase Columbia Threadneedle’s presence in the European institutional market and expand our investment capabilities and solutions to meet growing client demand.

     

    “With our consistent level of free-cash flow generation and financial strength, we were again able to increase our dividend another 9 percent – our 17th increase over the past 16 years – use cash for the acquisition and ensure our capital return plans are on track, all while maintaining our strong financial foundation.”

    • First quarter GAAP net income per diluted share was $3.58, which was negatively impacted by market changes that affected the valuation of derivatives. In the prior year period, the severe market dislocation, steep interest rate reduction and credit spread widening related to COVID-19 resulted in a substantial increase in GAAP results. See details on page 2.

     

    • Adjusted operating net revenue was $3.3 billion, a 10 percent increase from strong organic growth, an excellent result in the face of significant headwinds from low short-term interest rates.

     

    • General and administrative expenses were well managed in light of business growth, up 7 percent. Excluding the impact of share price appreciation on compensation expense, G&A was up 2 percent.

     

    • Assets under management and administration were up 36 percent to $1.14 trillion, a record high from strong client flows in Wealth and Asset Management, as well as market appreciation.

     

    • The company continues to generate strong organic growth, with more than $14 billion of client net inflows from Advice & Wealth Management and Asset Management.

     

    • The advisor network grew to 10,031 with 93 new experienced advisors joining the company in the quarter.

     

    • Investment performance at Columbia Threadneedle Investments remains excellent with 103 funds with 4- and 5-star Morningstar ratings.

     

    • The company returned $491 million of capital to shareholders in the quarter and announced a 9 percent increase in its quarterly dividend to $1.13 per share.

     

    • On April 12, Ameriprise announced the acquisition of BMO’s EMEA Asset Management business for approximately $845 million in cash. This acquisition expands key capabilities in attractive and growing market segments where BMO EMEA Asset Management has leading positions.

     

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

    As indicated, the severe market dislocation and steep interest rate reduction in the first quarter of 2020 related to COVID-19 distorted the company’s prior year GAAP and operating results. This included a tax benefit in the year ago quarter from a projected net operating loss (NOL) that was not ultimately realized.

    Ameriprise Financial, Inc.

    First Quarter Summary

     

    Quarter Ended
    March 31,

    % Over/
    (Under)

    (in millions, except per share amounts, unaudited)

    2021

    2020

    GAAP net income

    $

    437

     

     

    $

    2,036

     

     

    (79)%

    Adjusted operating earnings (see reconciliation on p. 25)

    $

    663

     

     

    $

    694

     

     

    (4)%

    Adjusted operating earnings excluding Net Operating Loss (NOL) tax benefit (see reconciliation on p. 25)

    $

    663

     

     

    $

    550

     

     

    21%

     

     

     

     

     

     

    GAAP net income per diluted share (1)

    $

    3.58

     

     

    $

    15.88

     

     

    (77)%

    Adjusted operating earnings per diluted share (see reconciliation on p. 25)

    $

    5.43

     

     

    $

    5.41

     

     

    Adjusted operating earnings per diluted share excluding Net Operating Loss (NOL) tax benefit (see reconciliation on p. 25) (2)

    $

    5.43

     

     

    $

    4.29

     

     

    27%

     

     

     

     

     

     

    GAAP Return on Equity, ex. AOCI

    (1.1

    )

    %

    59.5

     

    %

     

    Adjusted Operating Return on Equity, ex. AOCI

    29.9

     

    %

    39.7

     

    %

     

     

     

     

     

     

     

    Weighted average common shares outstanding:

     

     

     

     

     

    Basic

    119.8

     

    126.4

     

     

    Diluted

    122.2

     

    128.2

     

     

     

     

     

     

     

     

     

    (1) GAAP EPS of $3.58, a reduction of 77 percent.

    • Primarily driven by the prior year quarter, which was positively impacted by the significant change in the company’s credit spread and valuation of derivatives used to hedge the company’s variable annuity living benefit guarantees due to severe market dislocation.
    • Current year quarter results were negatively impacted by market changes that affected the valuation of derivatives.

    (2) Adjusted operating earnings per diluted share excluding net operating loss (NOL) tax benefit of $5.43, up 27 percent.

    • The significant equity market dislocation in the prior year period created a tax benefit of $1.12 per diluted share associated with the utilization of a NOL that was ultimately not utilized.

    Ameriprise Financial, Inc.

    Advice & Wealth Management Segment Adjusted Operating Results

     

    Quarter Ended
    March 31,

    % Over/
    (Under)

    Adjusted(1)
    % Over/
    (Under)

    (in millions, unaudited)

    2021

    2020

    Net revenues

    $

    1,879

     

    $

    1,695

     

    11%

    16%

    Distribution expenses

    1,135

     

    970

     

    (17)%

    (17)%

    G&A / other expense

    355

     

    347

     

    (2)%

    (2)%

    Pretax adjusted operating earnings

    $

    389

     

    $

    378

     

    3%

    30%

     

     

     

     

     

     

     

    Pretax adjusted operating margin

    20.7

    %

    22.3

    %

    (160) bps

    215 bps

     

     

     

     

     

     

     

    (1) Adjusted for $78 million impact from interest rates. See reconciliation on page 28.

     

    Quarter Ended
    March 31,

    % Over/
    (Under)

    (in billions, unless otherwise noted)

    2021

     

    2020

    Total client assets

    $

    762

     

    $

    560

    36%

    Total client net flows (1)

    $

    9.3

     

    $

    7.7

    21%

    Wrap net flows (1)

    $

    10.4

     

    $

    6.7

    55%

    AWM cash balance

    $

    40.4

     

    $

    40.0

    1%

    Average gross yield on cash balances (in bps)

    65

     

    172

     

    Adjusted operating net revenue per advisor (TTM in thousands)

    $

    689

     

    $

    680

    1%

    Adjusted for interest rates (2)

    $

    689

     

    $

    640

    8%

     

     

     

     

     

    (1) See definition on page 12.

    (2) Adjusted for impact from interest rates. See reconciliation on page 28.

    Advice & Wealth Management pretax adjusted operating earnings were $389 million, driven by strong flows, higher transactional activity and strong expense management. Excluding the impact from the decline in short-term interest rates of $78 million, adjusted operating earnings increased 30 percent and pretax adjusted operating margin increased 215 basis points. On a sequential basis, pretax operating earnings increased 11 percent and pretax adjusted operating margin expanded 90 basis points.

    Adjusted operating net revenues were $1.9 billion, reflecting strong net flows and market appreciation. Excluding the decline in short-term interest rates, revenues increased 16 percent. On a sequential basis, revenues increased 6 percent from strong flows and market appreciation, partially offset by fewer fee days in the current quarter.

    Total expenses were $1.5 billion. General and administrative expense was well managed and increased 2 percent, which was in line with expectations based upon the cost associated with increased activity and the impact of share price appreciation on compensation expense.

    Total client assets grew 36 percent to $762 billion, with continued strong total client flows of $9.3 billion in the quarter. The company’s ability to meet client needs efficiently and effectively is translating into excellent organic growth. Advisor productivity remains high with a 55 percent increase in flows in the investment advisory business and a 12 percent increase in transactional activity. Wrap net flows reached a record $10.4 billion. Cash balances remain elevated at $40.4 billion with a substantial opportunity for clients to put cash back to work in the future.

    Adjusted operating net revenue per advisor on a trailing 12-month basis was $689,000. Excluding the decline in short-term interest rates, adjusted net revenue per advisor increased 8 percent. Total advisors were 10,031 from a combination of high advisor retention and the addition of 93 experienced advisors in the quarter.

    Ameriprise Financial, Inc.

    Asset Management Segment Adjusted Operating Results

     

    Quarter Ended
    March 31,

    % Over/
    (Under)

    (in millions, unaudited)

    2021

     

    2020

     

    Net revenues

    $

    828

     

     

    $

    686

     

     

    21%

    Distribution expenses

    268

     

     

    231

     

     

    (16)%

    G&A / other expenses

    332

     

     

    298

     

     

    (11)%

    Pretax adjusted operating earnings

    $

    228

     

     

    $

    157

     

     

    45%

     

     

     

     

     

     

    Net pretax adjusted operating margin (1)

    43.9

     

    %

    37.9

     

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Quarter Ended
    March 31,

    % Over/
    (Under)

    (in billions)

    2021

     

    2020

     

    Total segment AUM

    $

    564

     

     

    $

    426

     

     

    32%

     

     

     

     

     

     

    Net Flows

     

     

     

     

     

    Global Retail net flows

    $

    4.6

     

     

    $

    (2.9

    )

     

    NM

    Global Institutional net flows, ex. legacy insurance partners flows

    1.6

     

     

    1.1

     

     

    45%

    Legacy insurance partners flows

    (1.3

    )

     

    (0.6

    )

     

    NM

    Total segment net flows

    $

    4.9

     

     

    $

    (2.4

    )

     

    NM

     

     

     

     

     

     

    Model delivery AUA Flows (2)

    $

    0.3

     

     

    $

    0.1

     

     

    NM

     

     

     

     

     

     

    (1) See reconciliation on page 13.

     

     

     

     

     

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

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

    Asset Management pretax adjusted operating earnings were $228 million, up 45 percent, reflecting our investment engine, which is driving revenue growth through consistent investment performance and compelling thought leadership leading to increased customer engagement. The prior year quarter included an unfavorable performance fee adjustment. The net pretax adjusted operating margin was 43.9 percent.

    Adjusted operating revenues increased 21 percent to $828 million from the cumulative benefit of inflows, a favorable mix shift and higher equity markets. The overall fee rate remained strong at 52 basis points.

    Adjusted operating expenses increased 13 percent. General and administrative expenses grew 12 percent driven primarily from higher compensation expense related to stronger business performance and Ameriprise share price appreciation compared to last year, as well as the costs associated with increased activity levels.

    Total assets under management increased 32 percent reflecting higher equity markets and net inflows. Investment performance remained strong across equity, fixed income and asset-allocation strategies.

    In the quarter, net inflows were $4.9 billion, an improvement of $7.3 billion from a year ago. Excluding legacy insurance partners outflows, net inflows were $6.2 billion, reflecting a continuation of positive flow trends across multiple distribution channels and strategies.

    • Retail net inflows were $4.6 billion. Net inflows in North America were $4.8 billion with notable inflows in the broker-dealer channel partially offset by modest outflows in EMEA.
    • Global institutional net inflows were $1.6 billion, with gross sales across multiple strategies.

    Ameriprise Financial, Inc.

    Retirement & Protection Solutions Segment (1) Adjusted Operating Results

     

    Quarter Ended
    March 31,

    % Over/
    (Under)

    (in millions, unaudited)

    2021

     

    2020

    Net revenues

    $

    787

     

     

    $

    759

     

    4%

    Expenses

    604

     

     

    592

     

    (2)%

    Pretax adjusted operating earnings

    $

    183

     

     

    $

    167

     

    10%

     

     

     

     

     

    Retirement & Protection Solutions pretax adjusted operating earnings increased 10 percent to $183 million. Results were strong from market appreciation, partially offset by higher claims versus an abnormally low level in the year ago period. Overall claims remain within expected ranges.

    Retirement sales increased 30 percent year-over-year to $1.5 billion. Retirement sales without living benefit guarantees represented 64 percent of variable annuity sales, driven by our lower-risk structured product, as well as our RAVA 5 product without living benefit guarantees. This sales shift is having a gradual impact on our inforce block, with account values with living benefit riders down nearly 2 percentage points year-over-year to 63 percent. This sales trend is expected to continue and meaningfully shift the mix of the business over time to lower-risk products that do not have living benefit guarantees. Annuity net amount at risk as a percent of account values was de minimis at 0.4 percent for living benefits and 0.1 percent for death benefits, which management believes is one of the lowest among major variable annuity writers, reflecting the high quality of the book.

    Sales of protection products were flat to a year ago with a product mix shift that is consistent with our focused approach. Sales of higher-margin accumulation VUL products increased more than 75 percent and sales shifted away from indexed UL products as expected given pricing changes that reflect the low interest rate environment.

    (1) Retirement & Protection Solutions segment includes Retirement Solutions (Variable Annuities and Payout Annuities) and Protection Solutions (Life and Disability Insurance). Fixed Annuities moved to the Corporate & Other segment in Q3 2020 as a closed block. Prior periods have been restated.

    Ameriprise Financial, Inc.

    Corporate & Other Segment (1) Adjusted Operating Results

     

    Quarter Ended
    March 31,

    % Over/
    (Under)

    (in millions, unaudited)

    2021

     

    2020

    Corporate & Other, excluding Closed Blocks

    $

    (63

    )

     

    $

    (52

    )

    (21)%

    Closed Blocks (2)

    42

     

     

    2

     

    NM

    Pretax adjusted operating earnings

    $

    (21

    )

     

    $

    (50

    )

    58%

     

     

     

     

     

    Long Term Care

    $

    46

     

     

    $

    2

     

    NM

    Fixed Annuities

    (4

    )

     

     

    Closed Blocks pretax adjusted operating earnings

    $

    42

     

     

    $

    2

     

    NM

     

     

     

     

     

    (1) Fixed Annuities was moved into the Corporate & Other segment as a closed block. Prior periods have been restated.

    (2) Long Term Care and Fixed Annuities.

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

    Total Corporate & Other pretax adjusted operating loss was $21 million, a $29 million improvement from the prior year.

    Corporate & Other, excluding Closed Blocks, pretax adjusted operating loss was $63 million. Results in the quarter included $11 million of higher compensation expense related to the impact of Ameriprise share price appreciation and $15 million from a strategic investment gain. The year ago quarter included an $11 million benefit from Ameriprise share price depreciation.

    Long Term Care pretax adjusted operating earnings were $46 million from higher mortality and terminations, primarily related to COVID-19, which had a decreasing impact as we moved through the quarter.

    Fixed Annuities pretax adjusted operating loss was $4 million from narrowed spreads related to continued low interest rates.

    Taxes

    The operating effective tax rate was 14.9 percent for the first quarter. The full year operating effective tax rate is expected to be approximately 17 percent.

    About Ameriprise Financial

    At Ameriprise Financial, we have been helping people feel confident about their financial future for more than 125 years. With extensive advisory, asset management and insurance capabilities and a nationwide network of approximately 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 is an SEC- and FCA-registered investment adviser affiliate 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 all 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 earnings 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, consolidated tax rate, return of capital to shareholders, and excess capital position and financial flexibility to capture additional growth opportunities;
    • statements about the expected trend in the shift of the retirement product sales business to lower risk products without living benefit guarantees over time;
    • 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; and
    • statements estimating the expected full year operating effective tax rate;
    • 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,” “scenario, “case,” “appear” 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, 2020, Part 1, Item 1A 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 quarter ended March 31, 2021.

    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)

    1 Qtr 2021

     

    1 Qtr 2020

    % Over/
    (Under)

    4 Qtr 2020

    % Over/
    (Under)

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

    2,102

     

     

    $

    1,770

     

    19%

    $

    2,003

     

    5%

    Distribution fees

    458

     

     

    464

     

    (1)%

    422

     

    9%

    Net investment income

    377

     

     

    328

     

    15%

    318

     

    19%

    Premiums, policy and contract charges

    347

     

     

    395

     

    (12)%

    375

     

    (7)%

    Other revenues

    71

     

     

    69

     

    3%

    71

     

    Total revenues

    3,355

     

     

    3,026

     

    11%

    3,189

     

    5%

    Banking and deposit interest expense

    5

     

     

    25

     

    80%

    6

     

    17%

    Total net revenues

    3,350

     

     

    3,001

     

    12%

    3,183

     

    5%

                 

    Expenses

     

     

     

     

     

     

    Distribution expenses

    1,175

     

     

    995

     

    (18)%

    1,096

     

    (7)%

    Interest credited to fixed accounts

    159

     

     

    91

     

    (75)%

    121

     

    (31)%

    Benefits, claims, losses and settlement expenses

    653

     

     

    (1,747

    )

    NM

    982

     

    34%

    Amortization of deferred acquisition costs

    5

     

     

    512

     

    99%

    (72

    )

    NM

    Interest and debt expense

    42

     

     

    46

     

    9%

    38

     

    (11)%

    General and administrative expense

    823

     

     

    753

     

    (9)%

    828

     

    1%

    Total expenses

    2,857

     

     

    650

     

    NM

    2,993

     

    5%

    Pretax income

    493

     

     

    2,351

     

    (79)%

    190

     

    NM

    Income tax provision

    56

     

     

    315

     

    82%

    13

     

    NM

    Net income

    $

    437

     

     

    $

    2,036

     

    (79)%

    $

    177

     

    NM

     

     

     

     

     

     

     

    Earnings per share

     

     

     

     

     

     

    Basic earnings per share

    $

    3.65

     

     

    $

    16.11

     

     

    $

    1.46

     

     

    Earnings per diluted share

    $

    3.58

     

     

    $

    15.88

     

     

    $

    1.43

     

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding

     

     

     

     

     

     

    Basic

    119.8

     

     

    126.4

     

     

    120.9

     

     

    Diluted

    122.2

     

     

    128.2

     

     

    123.4

     

     

     

     

     

     

     

     

     

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

    Ameriprise Financial, Inc.

    Consolidated Highlights and Capital Summary

    (in millions unless otherwise noted, unaudited)

    1 Qtr 2021

     

    1 Qtr 2020

    % Over/
    (Under)

    4 Qtr 2020

    % Over/
    (Under)

     

     

     

     

     

     

     

    Assets Under Management and Administration

     

     

     

     

     

    Advice & Wealth Management AUM

    $

    396,533

     

     

    $

    273,072

     

    45%

    $

    376,811

     

    5%

    Asset Management AUM

    564,131

     

     

    426,163

     

    32%

    546,613

     

    3%

    Corporate AUM

    97

     

     

    48

     

    NM

    82

     

    18%

    Eliminations

    (39,655

    )

     

    (27,923

    )

    (42)%

    (37,483

    )

    (6)%

    Total Assets Under Management

    921,106

     

     

    671,360

     

    37%

    886,023

     

    4%

    Total Assets Under Administration

    222,887

     

     

    167,760

     

    33%

    216,066

     

    3%

    Total AUM and AUA

    $

    1,143,993

     

     

    $

    839,120

     

    36%

    $

    1,102,089

     

    4%

     

     

     

     

     

     

     

    S&P 500

     

     

     

     

     

     

    Daily average

    3,861

     

     

    3,069

     

    26%

    3,555

     

    9%

    Period end

    3,973

     

     

    2,585

     

    54%

    3,756

     

    6%

     

     

     

     

     

     

     

    Weighted Equity Index (WEI) (1)

     

     

     

     

     

     

    Daily average

    2,662

     

     

    2,111

     

    26%

    2,414

     

    10%

    Period end

    2,725

     

     

    1,753

     

    55%

    2,573

     

    6%

     

     

     

     

     

     

     

    Common shares

     

     

     

     

     

     

    Beginning balance

    116.8

     

     

    123.9

     

    (6)%

    118.6

     

    (2)%

    Repurchases

    (1.7

    )

     

    (2.5

    )

    32%

    (2.1

    )

    19%

    Issuances

    1.8

     

     

    1.8

     

    1.0

     

    80%

    Other

    (0.9

    )

     

    (0.9

    )

    (0.7

    )

    (29)%

    Total common shares outstanding

    116.0

     

     

    122.3

     

    (5)%

    116.8

     

    (1)%

    Restricted stock units

    3.0

     

     

    3.1

     

    (3)%

    3.2

     

    (6)%

    Total basic common shares outstanding

    119.0

     

     

    125.4

     

    (5)%

    120.0

     

    (1)%

    Total potentially dilutive shares

    2.5

     

     

    0.9

     

    NM

    2.5

     

    Total diluted shares

    121.5

     

     

    126.3

     

    (4)%

    122.5

     

    (1)%

     

     

     

     

     

     

     

    Capital Returned to Shareholders

     

     

     

     

     

     

    Dividends paid

    $

    128

     

     

    $

    126

     

    2%

    $

    126

     

    2%

    Common stock share repurchases

    363

     

     

    386

     

    (6)%

    376

     

    (3)%

    Total Capital Returned to Shareholders

    $

    491

     

     

    $

    512

     

    (4)%

    $

    502

     

    (2)%

     

     

     

     

     

     

     

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

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

    Ameriprise Financial, Inc.

    Advice & Wealth Management Segment Adjusted Operating Results

    (in millions, unaudited)

    1 Qtr 2021

    1 Qtr 2020

    % Over/
    (Under)

    4 Qtr 2020

    % Over/
    (Under)

     

     

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

     

     

    Management and financial advice fees:

     

     

     

     

     

     

     

     

    Advisory fees

    $

    1,028

     

    $

    854

     

    20%

    $

    953

     

    8%

    Financial planning fees

    88

     

    81

     

    9%

    100

     

    (12)%

    Transaction and other fees

    89

     

    89

     

    88

     

    1%

    Total management and financial advice fees

    1,205

     

    1,024

     

    18%

    1,141

     

    6%

    Distribution fees:

     

     

     

     

     

     

     

     

    Mutual funds

    207

     

    184