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  • Ameriprise Financial Reports Third Quarter 2021 Results

    November 2, 2021 by Ameriprise

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

    Earnings Per Diluted Share

     

    Return on Equity, ex AOCI (1)

     

    Q3 2021

     

     

    Q3 2021

    GAAP

    $8.65

     

    GAAP

    41.7%

    Adjusted Operating

    $5.86

     

    Adjusted Operating

    47.8%

    Adjusted Operating Ex. Unlocking(2)

    $5.91

     

    Adjusted Operating Ex. Unlocking(2)

    47.9%

    • Third quarter adjusted operating earnings per diluted share excluding unlocking was $5.91, up 38 percent from last year due to strong organic growth and market appreciation.

     

    Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer

     

    “Ameriprise achieved another record quarter for client assets, revenue and earnings. We are executing our strategy well, driving organic growth and generating substantial shareholder value across market cycles.

     

    “Consistent with our plans, our growth businesses of wealth and asset management delivered 80 percent of our adjusted operating earnings for the quarter. At the same time, our retirement and protection business is differentiated and generates significant free cash flow and earnings.

     

    “2021 is proving to be a very strong year for Ameriprise. We are focused on maintaining our business momentum and strong performance through the remainder of the year into 2022.”

    • Third quarter GAAP net income per diluted share was $8.65, compared to a loss of $1.14 in the prior year period, driven by the fixed annuity reinsurance transaction that closed in the quarter and market impacts.

     

    • The company continues to generate strong organic growth, with approximately $14 billion of net inflows from Advice & Wealth Management and Asset Management, up substantially from a year ago.

     

    • Adjusted operating net revenue was $3.5 billion, an 18 percent increase from strong organic growth in Wealth and Asset Management and market appreciation.

     

    • Ameriprise generated strong profitability with pretax adjusted operating earnings excluding unlocking up 28 percent to $858 million, driven by 44 percent growth in Wealth and Asset Management. These businesses represented 80 percent of Ameriprise operating earnings in the quarter.

     

    • Assets under management and administration was $1.2 trillion, up 21 percent from strong client flows in Wealth and Asset Management, as well as market appreciation.

     

    • The company generated considerable free cash and returned $666 million of capital to shareholders in the quarter, which was 95 percent of adjusted operating earnings.

     

    • Excess capital was strong at $2.7 billion with a strong adjusted operating return on equity excluding unlocking of 47.9 percent.

     

     

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

    (2) Unlocking impacts reflect the company’s annual review of insurance and annuity valuation assumptions and model changes, and the Long Term Care (LTC) gross premium valuation.

    Ameriprise Financial, Inc.

    Third Quarter Summary

     

    Quarter Ended

    September 30,

    % Over/

    (Under)

     

    Year-to-date

    September 30,

    % Over/

    (Under)

    (in millions, except per share amounts, unaudited)

    2021

    2020

     

     

    2021

    2020

    GAAP net income

    $

    1,031

     

     

    $

    (140

    )

     

    NM

     

    $

    2,059

     

     

    $

    1,357

     

     

    52%

    Adjusted operating earnings

    $

    699

     

     

    $

    184

     

     

    NM

     

    $

    2,001

     

     

    $

    1,211

     

     

    65%

    Adjusted operating earnings excluding unlocking (see reconciliation on p. 25 and p. 26)

    $

    705

     

     

    $

    533

     

     

    32%

     

    $

    2,007

     

     

    $

    1,560

     

     

    29%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    GAAP net income per diluted share

    $

    8.65

     

     

    $

    (1.14

    )

     

    NM

     

    $

    17.03

     

     

    $

    10.73

     

     

    59%

    Adjusted operating earnings per diluted share

    $

    5.86

     

     

    $

    1.47

     

     

    NM

     

    $

    16.55

     

     

    $

    9.57

     

     

    73%

    Adjusted operating earnings per diluted share excluding unlocking (see reconciliation on p. 25 and p. 26)

    $

    5.91

     

     

    $

    4.27

     

     

    38%

     

    $

    16.60

     

     

    $

    12.33

     

     

    35%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    GAAP Return on Equity, ex. AOCI

    41.7

     

    %

    30.6

     

    %

     

     

    41.7

     

    %

    30.6

     

    %

     

    Adjusted Operating Return on Equity, ex. AOCI

    47.8

     

    %

    29.6

     

    %

     

     

    47.8

     

    %

    29.6

     

    %

     

    Adjusted Operating Return on Equity, ex. AOCI and unlocking

    47.9

     

    %

    35.5

     

    %

     

     

    47.9

     

    %

    35.5

     

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Basic

    116.4

     

     

    123.0

     

     

     

     

    118.2

     

     

    124.8

     

     

     

    Diluted

    119.2

     

     

    124.9

     

     

     

     

    120.9

     

     

    126.5

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

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

     

     

     

     

     

     

     

     

    Third quarter 2021 GAAP results were positively impacted by the net realized gains on investments transferred as part of the fixed annuity reinsurance transaction that closed in the quarter, as well as market changes that affected credit spreads and the valuation of derivatives.

     

    Ameriprise Financial, Inc.

    Advice & Wealth Management Segment Adjusted Operating Results

     

    Quarter Ended

    September 30,

    % Over/

    (Under)

    (in millions, unaudited)

    2021

    2020

    Net revenues

    $

    2,048

     

     

    $

    1,667

     

     

    23%

    Distribution expenses

    1,238

     

     

    998

     

     

    (24)%

    G&A / other expense

    351

     

     

    349

     

     

    (1)%

    Pretax adjusted operating earnings

    $

    459

     

     

    $

    320

     

     

    43%

     

     

     

     

     

     

    Pretax adjusted operating margin

    22.4

     

    %

    19.2

     

    %

    320 bps

     

     

     

     

     

     

     

     

    Quarter Ended

    September 30,

    % Over/

    (Under)

    (in billions, unless otherwise noted)

    2021

    2020

    Total client assets

    $

    811

     

     

    $

    667

     

    22%

    Total client net flows (1)

    $

    10.0

     

     

    $

    6.1

     

    64%

    Wrap net flows (1)

    $

    9.4

     

     

    $

    5.7

     

    65%

    AWM cash balance

    $

    40.1

     

     

    $

    39.4

     

    2%

    Average gross yield on cash balances (in bps)

    65

     

     

    71

     

     

    Adjusted operating net revenue per advisor (TTM in thousands)

    $

    766

     

     

    $

    668

     

    15%

    Adjusted for interest rates (2)

    $

    766

     

     

    $

    651

     

    18%

     

     

     

     

     

    (1) See definition on page 12.

    (2) Adjusted for impact from interest rates. See reconciliation on page 29

    Advice & Wealth Management pretax adjusted operating earnings increased 43 percent to $459 million driven by robust client net flows, higher transactional activity, market appreciation and disciplined expense management. Pretax adjusted operating margin was 22.4 percent, up 320 basis points, and continues to demonstrate our strategy to deliver profitable growth. On a sequential basis, pretax operating earnings increased 9 percent and pretax adjusted operating margin expanded 100 basis points.

    Adjusted operating net revenues grew 23 percent to $2.0 billion, reflecting strong client net flows and market appreciation.

    Total expenses were $1.6 billion, reflecting higher distribution expense associated with robust organic growth. General and administrative expense was up 1 percent from the prior year, as higher activity-based expense and performance-based compensation were partially offset by expense discipline.

    Total client assets grew 22 percent to $811 billion. The substantial organic growth was driven primarily by our advisor base with deeper client relationships from existing clients, as well as increased new client acquisition. Total client flows were a robust $10.0 billion in the quarter, representing a 65 percent increase in investment advisory flows and a 16 percent increase in transactional activity. Wrap net flows were $9.4 billion, representing the fourth consecutive quarter at or above $9.0 billion. Cash balances remain elevated at $40.1 billion with an 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 $766,000. Excluding the decline in short-term interest rates, adjusted net revenue per advisor increased 18 percent. The advisor count increased 2 percent to 10,073, with excellent advisor retention and the addition of 104 experienced advisors in the quarter.

    Ameriprise Financial, Inc.

    Asset Management Segment Adjusted Operating Results

     

    Quarter Ended

    September 30,

    % Over/

    (Under)

    (in millions, unaudited)

    2021

     

    2020

     

    Net revenues

    $

    915

     

     

    $

    739

     

     

    24%

    Distribution expenses

    288

     

     

    240

     

     

    (20)%

    G&A / other expenses

    342

     

     

    301

     

     

    (14)%

    Pretax adjusted operating earnings

    $

    285

     

     

    $

    198

     

     

    44%

     

     

     

     

     

     

    Net pretax adjusted operating margin (1)

    48.9

     

    %

    43.9

     

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Quarter Ended

    September 30,

    % Over/

    (Under)

    (in billions)

    2021

     

    2020

     

    Total segment AUM

    $

    583

     

     

    $

    498

     

     

    17%

     

     

     

     

     

     

    Net Flows

     

     

     

     

     

    Global Retail net flows

    $

    1.8

     

     

    $

    2.0

     

     

    (8)%

    Global Institutional net flows, ex. legacy insurance partners flows

    3.5

     

     

    (2.0

    )

     

    NM

    Legacy insurance partners flows

    (1.4

    )

     

    (1.6

    )

     

    10%

    Total segment net flows

    $

    3.9

     

     

    $

    (1.6

    )

     

    NM

     

     

     

     

     

     

    Model delivery AUA Flows (2)

    $

    0.5

     

     

    $

    0.3

     

     

    72%

     

     

     

     

     

     

    (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 increased 44 percent to $285 million reflecting the cumulative benefit of net inflows, higher performance fees and market appreciation. Net pretax adjusted operating margin was 48.9 percent. On a sequential basis, pretax operating earnings increased 13 percent and pretax adjusted operating margin expanded 350 basis points.

    Adjusted operating revenues increased 24 percent to $915 million from the cumulative benefit of inflows, as well as higher performance fees and equity markets. The fee rate remained strong at 53 basis points. On a sequential basis, revenues increased 4 percent.

    Adjusted operating expenses increased 16 percent. General and administrative expense grew 14 percent driven primarily from strong business performance that drove higher compensation expense and other volume-related costs, as well as foreign exchange translation.

    Total assets under management increased 17 percent to $583 billion reflecting equity market appreciation and net inflows. Long term investment performance remained very strong across equity, fixed income and asset-allocation strategies.

    In the quarter, net inflows were $3.9 billion, an improvement of $5.5 billion from a year ago. Net inflows were $5.3 billion, excluding legacy insurance partners outflows, reflecting a continuation of positive flow trends across multiple distribution channels and strategies.

    • Retail net inflows were $1.8 billion. Net inflows in North America were $2.2 billion with notable inflows in the broker-dealer channel that were partially offset by outflows in EMEA.
    • Global institutional net inflows were $3.5 billion, with gross sales across multiple strategies.

     

    Ameriprise Financial, Inc.

    Retirement & Protection Solutions Segment Adjusted Operating Results

     

    Quarter Ended

    September 30,

    % Over/

    (Under)

    (in millions, unaudited)

    2021

     

    2020

    Net revenues

    $

    834

     

     

    $

    781

     

    7%

    Expenses

    647

     

     

    870

     

    26%

    Pretax adjusted operating earnings

    $

    187

     

     

    $

    (89

    )

    NM

    Unlocking

    (5

    )

     

    (295

    )

    98%

    Pretax adjusted operating earnings excluding unlocking

    $

    192

     

     

    $

    206

     

    (7)%

     

     

     

     

     

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

    Retirement & Protection Solutions pretax adjusted operating earnings excluding unlocking was $192 million versus $206 million last year, with continued strong free cash flow generation and high return on capital. Unlocking was an unfavorable $5 million, reflecting strong performance of the blocks that was consistent with expectations.

    During the quarter, we continued to focus sales on non-guarantee retirement solutions and accumulation products, including variable annuities without living benefit riders, structured annuities and variable universal life. Retirement sales increased 28 percent to $1.4 billion in the quarter, with 72 percent in products without living benefit riders compared to 56 percent in the prior year quarter. Sales of higher-margin accumulation VUL products increased 167 percent and sales of indexed UL products declined 63 percent as expected given pricing changes made to reflect low interest rates.

    We maintain a differentiated book of business with strong returns and free cash flow generation, with a very limited risk profile as evidenced by variable annuity net amount at risk as a percent of account value of 0.4 percent for living benefits and 0.1 percent for death benefits, which we believe is well below the industry.

    Ameriprise Financial, Inc.

    Corporate & Other Segment Adjusted Operating Results

     

    Quarter Ended

    September 30,

    % Over/

    (Under)

    (in millions, unaudited)

    2021

     

    2020

    Corporate & Other

    $

    (73

    )

     

    $

    (58

    )

    (26)%

    Closed Blocks (1)

    (8

    )

     

    (144

    )

    94%

    Pretax adjusted operating earnings

    $

    (81

    )

     

    $

    (202

    )

    60%

    Unlocking/loss recognition

    (3

    )

     

    (147

    )

    98%

    Pretax adjusted operating earnings excluding unlocking/loss recognition

    $

    (78

    )

     

    $

    (55

    )

    (42)%

     

     

     

     

     

    Long term care excluding unlocking/loss recognition

    $

    2

     

     

    $

    6

     

    (67)%

    Fixed Annuities excluding unlocking

    (7

    )

     

    (3

    )

    NM

    Pretax adjusted operating earnings excluding unlocking

    $

    (5

    )

     

    $

    3

     

    NM

     

     

     

     

     

    (1) Long Term Care and Fixed Annuities.

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

    Corporate & Other pretax adjusted operating loss was in line within expectations at $73 million.

    Closed Blocks of long term care and fixed annuities had a pretax adjusted operating loss of $5 million excluding unlocking. Our closed long term care block continued to perform in line with our expectations, with pretax adjusted operating earnings of $2 million. Results included a favorable $8 million from an adjustment to our long term care claim reserves.

    Fixed annuities pretax adjusted operating loss excluding unlocking was $7 million, reflecting the amortization of the reinsurance ceding commission. In July, the company closed its fixed annuity reinsurance transaction for RiverSource Life Insurance Company with Global Atlantic’s subsidiary, Commonwealth Annuity and Life Insurance Company.

    Taxes

    The third quarter adjusted operating effective tax rate was 17.8 percent. On a year-to-date basis, the adjusted operating effective tax rate was 17.0 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 over 10,000 financial advisors, we have the strength and expertise to serve the full range of individual and institutional investors’ financial needs. For more information, or to find an Ameriprise financial advisor, visit ameriprise.com.

    Ameriprise Financial Services, LLC offers financial planning services, investments, insurance and annuity products. Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA and managed by Columbia Management Investment Advisers, LLC. Threadneedle International Limited 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 away from products with living benefit guarantees and resulting expected impact to the business;
    • 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 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,” “expands” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from such statements.

    Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Management cautions readers to carefully consider the risks described in the “Risk Factors” discussion under Part 1, Item 1A of and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2020 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 September 30, 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)

    3 Qtr 2021

     

    3 Qtr 2020

    % Over/

    (Under)

    2 Qtr 2021

    % Over/

    (Under)

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

    2,367

     

     

    $

    1,893

     

    25%

    $

    2,251

    5%

    Distribution fees

    458

     

     

    400

     

    15%

    452

    1%

    Net investment income

    773

     

     

    300

     

    NM

    278

    NM

    Premiums, policy and contract charges

    (805

    )

     

    352

     

    NM

    364

    NM

    Other revenues

    113

     

     

    68

     

    66%

    75

    51%

    Total revenues

    2,906

     

     

    3,013

     

    (4)%

    3,420

    (15)%

    Banking and deposit interest expense

    3

     

     

    10

     

    70%

    2

    (50)%

    Total net revenues

    2,903

     

     

    3,003

     

    (3)%

    3,418

    (15)%

    Expenses

     

     

     

     

     

     

    Distribution expenses

    1,285

     

     

    1,028

     

    (25)%

    1,233

    (4)%

    Interest credited to fixed accounts

    172

     

     

    170

     

    (1)%

    124

    (39)%

    Benefits, claims, losses and settlement expenses

    (719

    )

     

    1,104

     

    NM

    404

    NM

    Amortization of deferred acquisition costs

    9

     

     

    85

     

    89%

    63

    86%

    Interest and debt expense

    64

     

     

    37

     

    (73)%

    43

    (49)%

    General and administrative expense

    822

     

     

    763

     

    (8)%

    830

    1%

    Total expenses

    1,633

     

     

    3,187

     

    49%

    2,697

    39%

    Pretax income

    1,270

     

     

    (184

    )

    NM

    721

    76%

    Income tax provision

    239

     

     

    (44

    )

    NM

    130

    (84)%

    Net income

    $

    1,031

     

     

    $

    (140

    )

    NM

    $

    591

    74%

     

     

     

     

     

     

     

    Earnings per share

     

     

     

     

     

     

    Basic earnings per share

    $

    8.86

     

     

    $

    (1.14

    )

     

    $

    4.99

     

    Earnings per diluted share

    $

    8.65

     

     

    $

    (1.14

    )

     

    $

    4.88

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding

     

     

     

     

     

     

    Basic

    116.4

     

     

    123.0

     

     

    118.4

     

    Diluted

    119.2

     

     

    124.9

     

     

    121.2

     

     

     

     

     

     

     

     

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

    Ameriprise Financial, Inc.

    Consolidated Highlights and Capital Summary

    (in millions unless otherwise noted, unaudited)

    3 Qtr 2021

     

    3 Qtr 2020

    % Over/

    (Under)

    2 Qtr 2021

    % Over/

    (Under)

     

     

     

     

     

     

     

    Assets Under Management and Administration

     

     

     

     

     

    Advice & Wealth Management AUM

    $

    431,861

     

     

    $

    336,966

     

    28%

    $

    426,500

     

    1%

    Asset Management AUM

    583,398

     

     

    498,004

     

    17%

    593,366

     

    (2)%

    Corporate AUM

    104

     

     

    65

     

    60%

    100

     

    4%

    Eliminations

    (42,022

    )

     

    (34,128

    )

    (23)%

    (42,025

    )

    Total Assets Under Management

    973,341

     

     

    800,907

     

    22%

    977,941

     

    Total Assets Under Administration

    232,934

     

     

    197,699

     

    18%

    233,334

     

    Total AUM and AUA

    $

    1,206,275

     

     

    $

    998,606

     

    21%

    $

    1,211,275

     

     

     

     

     

     

     

     

    S&P 500

     

     

     

     

     

     

    Daily average

    4,425

     

     

    3,316

     

    33%

    4,182

     

    6%

    Period end

    4,308

     

     

    3,363

     

    28%

    4,298

     

     

     

     

     

     

     

     

    Weighted Equity Index (WEI) (1)

     

     

     

     

     

     

    Daily average

    2,983

     

     

    2,234

     

    34%

    2,858

     

    4%

    Period end

    2,909

     

     

    2,255

     

    29%

    2,921

     

    (0.4)%

     

     

     

     

     

     

     

    Common shares

     

     

     

     

     

     

    Beginning balance

    114.3

     

     

    120.6

     

    (5)%

    116.0

     

    (1)%

    Repurchases

    (2.1

    )

     

    (2.1

    )

    (1.7

    )

    (24)%

    Issuances

    0.4

     

     

    0.3

     

    33%

    0.2

     

    NM

    Other

    (0.2

    )

     

    (0.2

    )

    (0.2

    )

    Total common shares outstanding

    112.4

     

     

    118.6

     

    (5)%

    114.3

     

    (2)%

    Restricted stock units

    3.0

     

     

    3.2

     

    (6)%

    3.1

     

    (3)%

    Total basic common shares outstanding

    115.4

     

     

    121.8

     

    (5)%

    117.4

     

    (2)%

    Total potentially dilutive shares

    2.9

     

     

    1.9

     

    53%

    2.7

     

    7%

    Total diluted shares

    118.3

     

     

    123.7

     

    (4)%

    120.1

     

    (1)%

     

     

     

     

     

     

     

    Capital Returned to Shareholders

     

     

     

     

     

     

    Dividends paid

    $

    133

     

     

    $

    129

     

    3%

    $

    135

     

    (1)%

    Common stock share repurchases

    533

     

     

    319

     

    67%

    450

     

    18%

    Total Capital Returned to Shareholders

    $

    666

     

     

    $

    448

     

    49%

    $

    585

     

    14%

     

     

     

     

     

     

     

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

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

     

    Ameriprise Financial, Inc.

    Advice & Wealth Management Segment Adjusted Operating Results

    (in millions, unaudited)

    3 Qtr 2021

    3 Qtr 2020

    % Over/

    (Under)

    2 Qtr 2021

    % Over/

    (Under)

     

     

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

     

     

    Management and financial advice fees:

     

     

     

     

     

     

     

     

    Advisory fees

    $

    1,189

     

     

    $

    907

     

     

    31%

    $

    1,113

     

     

    7%

    Financial planning fees

    91

     

     

    81

     

     

    12%

    93

     

     

    (2)%

    Transaction and other fees

    94

     

     

    89

     

     

    6%

    93

     

     

    1%

    Total management and financial advice fees

    1,374

     

     

    1,077

     

     

    28%

    1,299

     

     

    6%

    Distribution fees:

     

     

     

     

     

     

     

     

    Mutual funds

    219

     

     

    186

     

     

    18%

    212

     

     

    3%

    Insurance and annuity

    246

     

     

    202

     

     

    22%

    252

     

     

    (2)%

    Other products

    96

     

     

    91

     

     

    5%

    98

     

     

    (2)%

    Total distribution fees

    561

     

     

    479

     

     

    17%

    562

     

     

    Net investment income

    62

     

     

    70

     

     

    (11)%

    63

     

     

    (2)%

    Other revenues

    54

     

     

    51

     

     

    6%

    58

     

     

    (7)%

    Total revenues

    2,051

     

     

    1,677

     

     

    22%

    1,982

     

     

    3%

    Banking and deposit interest expense

    3

     

     

    10

     

     

    70%

    2

     

     

    (50)%

    Adjusted operating total net revenues

    2,048

     

     

    1,667

     

     

    23%

    1,980

     

     

    3%

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

     

     

    Distribution expenses

    1,238

     

     

    998

     

     

    (24)%

    1,194

     

     

    (4)%

    Interest and debt expense

    3

     

     

    3

     

     

    2

     

     

    (50)%

    General and administrative expense

    348

     

     

    346

     

     

    (1)%

    361

     

     

    4%

    Adjusted operating expenses

    1,589

     

     

    1,347

     

     

    (18)%

    1,557

     

     

    (2)%

    Pretax adjusted operating earnings

    $

    459

     

     

    $

    320

     

     

    43%

    $

    423

     

     

    9%

     

     

     

     

     

     

     

     

     

    Pretax adjusted operating margin

    22.4

     

    %

    19.2

     

    %

     

    21.4

     

    %

     

     

     

     

     

     

     

     

     

     

    Pretax adjusted operating earnings by product

     

     

     

     

     

     

     

     

    Certificates and Banking – Combined

    $

    17

     

     

    $

    17

     

     

    $

    18

     

     

    (6)%

    Wealth Management & Distribution

    442

     

     

    303

     

     

    46%

    405

     

     

    9%

    Pretax adjusted operating earnings

    $

    459

     

     

    $

    320

     

     

    43%

    $

    423

     

     

    9%

     

     

     

     

     

     

     

     

     

    Ameriprise Financial, Inc.

    Advice & Wealth Management Segment Operating Metrics

    (in millions unless otherwise noted, unaudited)

    3 Qtr 2021

    3 Qtr 2020

    % Over/

    (Under)

    2 Qtr 2021

    % Over/

    (Under)

     

     

     

     

     

     

     

     

     

     

     

    AWM Total Client Assets

    $

    811,189

     

     

    $

    666,800

     

     

    22%

    $

    807,335

     

     

     

     

     

     

     

     

     

     

     

     

     

    Total Client Flows (1)

    $

    10,043

     

     

    $

    6,130

     

     

    64%

    $

    9,530

     

     

    5%

     

     

     

     

     

     

     

     

     

     

     

    Total Wrap Accounts

     

     

     

     

     

     

     

     

     

     

    Beginning assets

    $

    430,003

     

     

    $

    317,615

     

     

    35%

    $

    399,817

     

     

    8%

    Net flows (2)

    9,404

     

     

    5,701

     

     

    65%

    10,024

     

     

    (6)%

    Market appreciation (depreciation) and other (2)

    (4,032

    )

     

    16,634

     

     

    NM

    20,162

     

     

    NM

    Total wrap ending assets

    $

    435,375

     

     

    $

    339,950

     

     

    28%

    $

    430,003

     

     

    1%

     

     

     

     

     

     

     

     

     

     

     

    Advisory wrap account assets ending balance (3)

    $

    430,546

     

     

    $

    335,980

     

     

    28%

    $

    425,200

     

     

    1%

     

     

     

     

     

     

     

     

     

     

     

    Brokerage Cash & Certificates Balances

     

     

     

     

     

     

     

     

     

     

    On-balance sheet (Net Investment Income)

     

     

     

     

     

     

     

     

     

     

    On-balance sheet – broker dealer

    $

    3,441

     

     

    $

    3,345

     

     

    3%

    $

    3,383

     

     

    2%

    On-balance sheet – bank

    9,815

     

     

    6,320

     

     

    55%

    8,671

     

     

    13%

    On-balance sheet – certificate

    5,442

     

     

    7,165

     

     

    (24)%

    5,749

     

     

    (5)%

    Total on-balance sheet

    $

    18,698

     

     

    $

    16,830

     

     

    11%

    $

    17,803

     

     

    5%

    Off-balance sheet (Distribution Fees)

     

     

     

     

     

     

     

     

     

     

    Off-balance sheet – broker dealer

    $

    21,374

     

     

    $

    22,591

     

     

    (5)%

    $

    21,391

     

     

    Total brokerage cash & certificates balances

    $

    40,072

     

     

    $

    39,421

     

     

    2%

    $

    39,194

     

     

    2%

     

     

     

     

     

     

     

     

     

     

     

    Gross Fee Yield

     

     

     

     

     

     

     

     

     

     

    On-balance sheet – broker dealer

    0.06

     

    %

    0.11

     

    %

     

    0.05

     

    %

     

    On-balance sheet – bank

    1.44

     

    %

    1.53

     

    %

     

    1.32

     

    %

     

    On-balance sheet – certificates

    1.06

     

    %

    1.45

     

    %

     

    1.13

     

    %

     

    Off-balance sheet – broker dealer

    0.28

     

    %

    0.29

     

    %

     

    0.27

     

    %

     

     

     

     

     

     

     

     

     

     

     

     

    Weighted Average Gross Fee Yield

    0.65

     

    %

    0.71

     

    %

     

    0.63

     

    %

     

     

     

     

     

     

     

     

     

     

     

     

    Financial Advisors

     

     

     

     

     

     

     

     

     

     

    Employee advisors

    2,112

     

     

    2,123

     

     

    (1)%

    2,104

     

     

    Franchisee advisors

    7,961

     

     

    7,782

     

     

    2%

    7,943

     

     

    Total financial advisors

    10,073

     

     

    9,905

     

     

    2%

    10,047

     

     

     

     

     

     

     

     

     

     

     

     

     

    Advisor Retention

     

     

     

     

     

     

     

     

     

     

    Employee

    91.7

     

    %

    91.9

     

    %

     

    91.4

     

    %

     

    Franchisee

    94.3

     

    %

    93.6

     

    %

     

    94.1

     

    %

     

     

     

     

     

     

     

     

     

     

     

     

    (1) Total client flows represent inflows of client cash and securities less client outflows. 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 and interest less 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)

    3 Qtr 2021

    3 Qtr 2020

    % Over/

    (Under)

    2 Qtr 2021

    % Over/

    (Under)

     

     

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

     

     

    Management and financial advice fees:

     

     

     

     

     

     

     

     

    Asset management fees:

     

     

     

     

     

     

     

     

    Retail

    $

    587

     

     

    $

    466

     

     

    26%

    $

    567

     

     

    4%

    Institutional

    143

     

     

    122

     

     

    17%

    131

     

     

    9%

    Transaction and other fees

    57

     

     

    47

     

     

    21%

    56

     

     

    2%

    Revenue from other sources (1)

    7

     

     

    6

     

     

    17%

    4

     

     

    75%

    Total management and financial advice fees

    794

     

     

    641

     

     

    24%

    758

     

     

    5%

    Distribution fees:

     

     

     

     

     

     

     

     

    Mutual funds

    70

     

     

    59

     

     

    19%

    69

     

     

    1%

    Insurance and annuity

    50

     

     

    45

     

     

    11%

    49

     

     

    2%

    Total distribution fees

    120

     

     

    104

     

     

    15%

    118

     

     

    2%

    Net investment income

    1

     

     

    (6

    )

     

    NM

    2

     

     

    (50)%

    Other revenues

     

     

     

     

    1

     

     

    NM

    Total revenues

    915

     

     

    739

     

     

    24%

    879

     

     

    4%

    Banking and deposit interest expense

     

     

     

     

     

     

    Adjusted operating total net revenues

    915

     

     

    739

     

     

    24%

    879

     

     

    4%

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

     

     

    Distribution expenses

    288

     

     

    240

     

     

    (20)%

    282

     

     

    (2)%

    Amortization of deferred acquisition costs

    3

     

     

    2

     

     

    (50)%

    3

     

     

    Interest and debt expense

    1

     

     

    2

     

     

    50%

    1

     

     

    General and administrative expense

    338

     

     

    297

     

     

    (14)%

    340

     

     

    1%

    Adjusted operating expenses

    630

     

     

    541

     

     

    (16)%

    626

     

     

    (1)%

    Pretax adjusted operating earnings

    $

    285

     

     

    $

    198

     

     

    44%

    $

    253

     

     

    13%

     

     

     

     

     

     

     

     

     

    Net Pretax Adjusted Operating Margin Reconciliation

     

     

     

     

     

     

     

    Adjusted operating total net revenues

    $

    915

     

     

    $

    739

     

     

    24%

    $

    879

     

     

    4%

    Distribution pass thru revenues

    (231

    )

     

    (193

    )

     

    (20)%

    (225

    )

     

    (3)%

    Subadvisory and other pass thru revenues

    (97

    )

     

    (74

    )

     

    (31)%

    (94

    )

     

    (3)%

    Net adjusted operating revenues

    $

    587

     

     

    $

    472

     

     

    24%

    $

    560

     

     

    5%

     

     

     

     

     

     

     

     

     

    Pretax adjusted operating earnings

    $

    285

     

     

    $

    198

     

     

    44%

    $

    253

     

     

    13%

    Adjusted operating net investment income

    (1

    )

     

    6

     

     

    NM

    (2

    )

     

    50%

    Amortization of intangibles

    3

     

     

    3

     

     

    3

     

     

    Net adjusted operating earnings

    $

    287

     

     

    $

    207

     

     

    39%

    $

    254

     

     

    13%

     

     

     

     

     

     

     

     

     

    Pretax adjusted operating margin

    31.1

     

    %

    26.8

     

    %

     

    28.8

     

    %

     

    Net pretax adjusted operating margin (2)

    48.9

     

    %

    43.9

     

    %

     

    45.4

     

    %

     

     

     

     

     

     

     

     

     

     

    Performance fees (3)

     

     

     

     

     

     

     

     

    Performance fees

    $

    13

     

     

    $

     

     

    $

    3

     

     

    NM

    Performance fee related to general and administrative expense

     

     

     

     

     

     

    Net performance fees

    $

    13

     

     

    $

     

     

    $

    3

     

     

    NM

     

     

     

     

     

     

     

     

     

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

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

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

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

    Ameriprise Financial, Inc.

    Asset Management Segment Operating Metrics

    (in millions, unaudited)

    3 Qtr 2021

    3 Qtr 2020

    % Over/

    (Under)

    2 Qtr 2021

    % Over/

    (Under)

     

     

     

     

     

     

     

     

     

    Total Managed Assets by Type

     

     

     

     

     

     

     

     

    Equity

    $

    332,715

     

     

    $

    264,840

     

     

    26%

    $

    339,032

     

     

    (2)%

    Fixed income

    199,253

     

     

    188,844

     

     

    6%

    203,101

     

     

    (2)%

    Money market

    5,752

     

     

    5,076

     

     

    13%

    5,484

     

     

    5%

    Alternative

    3,829

     

     

    3,465

     

     

    11%

    3,839

     

     

    Hybrid and other

    41,849

     

     

    35,779

     

     

    17%

    41,910

     

     

    Total managed assets by type

    $

    583,398

     

     

    $

    498,004

     

     

    17%

    $

    593,366

     

     

    (2)%

     

     

     

     

     

     

     

     

     

    Average Managed Assets by Type (1)

     

     

     

     

     

     

     

     

    Equity

    $

    340,804

     

     

    $

    264,206

     

     

    29%

    $

    330,801

     

     

    3%

    Fixed income

    200,712

     

     

    187,171

     

     

    7%

    200,246

     

     

    Money market

    5,831

     

     

    5,100

     

     

    14%

    5,823

     

     

    Alternative

    3,828

     

     

    3,340

     

     

    15%

    3,812

     

     

    Hybrid and other

    42,098

     

     

    35,422

     

     

    19%

    41,148

     

     

    2%

    Total average managed assets by type

    $

    593,273

     

     

    $

    495,239

     

     

    20%

    $

    581,830

     

     

    2%

     

     

     

     

     

     

     

     

     

    Managed Assets Rollforward

     

     

     

     

     

     

     

     

    Global Retail Funds

     

     

     

     

     

     

     

     

    Beginning assets

    $

    359,476

     

     

    $

    274,136

     

     

    31%

    $

    340,270

     

     

    6%

    Inflows

    16,442

     

     

    14,498

     

     

    13%

    19,371

     

     

    (15)%

    Outflows

    (15,509

    )

     

    (13,192

    )

     

    (18)%

    (17,075

    )

     

    9%

    Net VP/VIT fund flows

    (1,101

    )

     

    (691

    )

     

    (59)%

    (967

    )

     

    (14)%

    Net new flows

    (168

    )

     

    615

     

     

    NM

    1,329

     

     

    NM

    Reinvested dividends

    2,001

     

     

    1,375

     

     

    46%

    2,874

     

     

    (30)%

    Net flows

    1,833

     

     

    1,990

     

     

    (8)%

    4,203

     

     

    (56)%

    Distributions

    (2,151

    )

     

    (1,540

    )

     

    (40)%

    (3,375

    )

     

    36%

    Market appreciation (depreciation) and other

    (2,282

    )

     

    13,848

     

     

    NM

    18,113

     

     

    NM

    Foreign currency translation (2)

    (1,157

    )

     

    1,488

     

     

    NM

    265

     

     

    NM

    Total ending assets

    355,719

     

     

    289,922

     

     

    23%

    359,476

     

     

    (1)%

    % of total retail assets sub-advised

    16.0

     

    %

    18.1

     

    %

     

    15.9

     

    %

     

     

     

     

     

     

     

     

     

     

    Global Institutional

     

     

     

     

     

     

     

     

    Beginning assets

    233,890

     

     

    201,985

     

     

    16%

    223,861

     

     

    4%

    Inflows (3)

    9,428

     

     

    7,021

     

     

    34%

    9,320

     

     

    1%

    Outflows (3)

    (7,356

    )

     

    (10,562

    )

     

    30%

    (6,853

    )

     

    (7)%

    Net flows

    2,072

     

     

    (3,541

    )

     

    NM

    2,467

     

     

    (16)%

    Market appreciation (depreciation) and other (4)

    (5,895

    )

     

    6,546

     

     

    NM

    7,125

     

     

    NM

    Foreign currency translation (2)

    (2,388

    )

     

    3,092

     

     

    NM

    437

     

     

    NM

    Total ending assets

    227,679

     

     

    208,082

     

     

    9%

    233,890

     

     

    (3)%

     

     

     

     

     

     

     

     

     

    Total managed assets

    $

    583,398

     

     

    $

    498,004

     

     

    17%

    $

    593,366

     

     

    (2)%

     

     

     

     

     

     

     

     

     

    Total net flows

    $

    3,905

     

     

    $

    (1,551

    )

     

    NM

    $

    6,670

     

     

    (41)%

     

     

     

     

     

     

     

     

     

    Legacy insurance partners flows

    $

    (1,402

    )

     

    $

    (1,555

    )

     

    10%

    $

    (1,353

    )

     

    (4)%

     

     

     

     

     

     

     

     

     

    Total Assets Under Advisement (5)

    $

    19,742

     

     

    $

    12,714

     

     

    55%

    $

    18,036

     

     

    9%

    Model delivery AUA flows (6)

    $

    514

     

     

    $

    299

     

     

    72%

    $

    912

     

     

    (44)%

     

     

     

     

     

     

     

     

     

    (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

     

    3 Qtr 2021

     

     

     

     

     

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

    1 year

    3 year

    5 year

    10 year

    Equity

    46%

    86%

    85%

    88%

    Fixed Income

    85%

    88%

    94%

    91%

    Asset Allocation

    41%

    87%

    95%

    89%

     

     

     

     

     

    4- or 5-star Morningstar rated funds

    Overall

    3 year

    5 year

    10 year

    Number of Rated Funds

    105

    91

    91

    84

    Percent of Rated Assets

    66%

    61%

    57%

    67%

     

     

     

     

     

    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.

     

     

     

     

     

    Morningstar as of 09/30/21. Columbia funds are available for purchase by U.S. customers. Out of 90 Columbia funds (Inst. shares) rated, 16 received a 5-star Overall Rating and 36 received a 4-star Overall Rating. Out of 94 Threadneedle funds (highest rated share class) rated, 19 received a 5-star Overall Rating and 34 received a 4-star Overall Rating. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics. Not all funds are available in all jurisdictions, to all investors or through all firms.

     

    © 2021 Morningstar. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

     

     

     

     

     

    Ameriprise Financial, Inc.

    Retirement & Protection Solutions Segment(1) Adjusted Operating Results

    (in millions, unaudited)

    3 Qtr 2021

     

    3 Qtr 2020

    % Over/

    (Under)

    2 Qtr 2021

    % Over/

    (Under)

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

    239

     

    $

    213

     

    12%

    $

    234

    2%

    Distribution fees

    125

     

    111

     

    13%

    122

    2%

    Net investment income

    114

     

    121

     

    (6)%

    127

    (10)%

    Premiums, policy and contract charges

    353

     

    333

     

    6%

    325

    9%

    Other revenues

    3

     

    3

     

    Total revenues

    834

     

    781

     

    7%

    808

    3%

    Banking and deposit interest expense

     

     

    Adjusted operating total net revenues

    834

     

    781

     

    7%

    808

    3%

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

    134

     

    110

     

    (22)%

    134

    Interest credited to fixed accounts

    99

     

    100

     

    1%

    98

    (1)%

    Benefits, claims, losses and settlement expenses

    323

     

    421

     

    23%

    241

    (34)%

    Amortization of deferred acquisition costs

    5

     

    157

     

    97%

    70

    93%

    Interest and debt expense

    9

     

    8

     

    (13)%

    9

    General and administrative expense

    77

     

    74

     

    (4)%

    74

    (4)%

    Adjusted operating expenses

    647

     

    870

     

    26%

    626

    (3)%

    Pretax adjusted operating earnings

    $

    187

     

    $

    (89

    )

    NM

    $

    182

    3%

     

     

     

     

     

     

     

    (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)

    3 Qtr 2021

     

    3 Qtr 2020

    % Over/

    (Under)

    2 Qtr 2021

    % Over/

    (Under)

     

     

     

     

     

     

     

    Variable Annuities Rollforwards

     

     

     

     

     

     

    Beginning balance

    $

    90,494

     

     

    $

    77,481

     

    17%

    $

    86,964

     

    4%

    Deposit

    1,421

     

     

    1,109

     

    28%

    1,597

     

    (11)%

    Withdrawals and terminations

    (1,900

    )

     

    (1,567

    )

    (21)%

    (1,946

    )

    2%

    Net flows

    (479

    )

     

    (458

    )

    (5)%

    (349

    )

    (37)%

    Investment performance and interest credited

    (380

    )

     

    2,823

     

    NM

    3,879

     

    NM

    Other

     

     

     

     

    Total ending balance – contract accumulation values

    $

    89,635

     

     

    $

    79,846

     

    12%

    $

    90,494

     

    (1)%

     

     

     

     

     

     

     

    Variable annuities fixed sub-accounts

    $

    5,020

     

     

    $

    5,107

     

    (2)%

    $

    5,052

     

    (1)%

     

     

     

     

     

     

     

    Life Insurance In Force

    $

    197,523

     

     

    $

    195,007

     

    1%

    $

    196,794

     

     

     

     

     

     

     

     

    Net Amount at Risk (Life)

    $

    37,766

     

     

    $

    38,403

     

    (2)%

    $

    37,465

     

    1%

     

     

     

     

     

     

     

    Net Policyholder Reserves

     

     

     

     

     

     

    VUL/UL

    $

    14,565

     

     

    $

    12,836

     

    13%

    $

    14,593

     

    Term and whole life

    168

     

     

    177

     

    (5)%

    171

     

    (2)%

    Disability insurance

    488

     

     

    504

     

    (3)%

    494

     

    (1)%

    Other insurance

    623

     

     

    652

     

    (4)%

    629

     

    (1)%

    Total net policyholder reserves

    $

    15,844

     

     

    $

    14,169

     

    12%

    $

    15,887

     

     

     

     

     

     

     

     

    DAC Ending Balances

     

     

     

     

     

     

    Variable Annuities DAC

    $

    1,840

     

     

    $

    1,577

     

    17%

    $

    1,799

     

    2%

    Life and Health DAC

    $

    834

     

     

    $

    817

     

    2%

    $

    799

     

    4%

     

     

     

     

     

     

     

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

    Ameriprise Financial, Inc.

    Corporate Segment Adjusted Operating Results and Metrics

    (in millions, unaudited)

    3 Qtr 2021

     

    3 Qtr 2020

    % Over/

    (Under)

    2 Qtr 2021

    % 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

    (17

    )

     

    (14

    )

    (21)%

    (20

    )

    15%

    Premiums, policy and contract charges

     

     

     

    1

     

    NM

    Other revenues

    1

     

     

    3

     

    (67)%

    3

     

    (67)%

    Total revenues

    (16

    )

     

    (11

    )

    (45)%

    (16

    )

    Banking and deposit interest expense

     

     

     

    1

     

    NM

    Adjusted operating total net revenues

    (16

    )

     

    (11

    )

    (45)%

    (17

    )

    6%

     

     

     

     

     

     

     

    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

    13

     

     

    6

     

    NM

    9

     

    (44)%

    General and administrative expense

    44

     

     

    40

     

    (10)%

    48

     

    8%

    Adjusted operating expenses

    57

     

     

    47

     

    (21)%

    57

     

    Pretax adjusted operating earnings (loss)

    $

    (73

    )

     

    $

    (58

    )

    (26)%

    $

    (74

    )

    1%

     

     

     

     

     

     

     

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

    Ameriprise Financial, Inc.

    Corporate Segment Adjusted Operating Results and Metrics

    (in millions, unaudited)

    3 Qtr 2021

     

    3 Qtr 2020

    % Over/

    (Under)

    2 Qtr 2021

    % Over/

    (Under)

     

     

     

     

     

     

     

    Long Term Care Adjusted Operating Income Statements

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

     

     

    $

     

    $

     

    Distribution fees

     

     

     

     

    Net investment income

    36

     

     

    40

     

    (10)%

    38

     

    (5)%

    Premiums, policy and contract charges

    26

     

     

    26

     

    24

     

    8%

    Other revenues

     

     

     

     

    Total revenues

    62

     

     

    66

     

    (6)%

    62

     

    Banking and deposit interest expense

     

     

     

     

    Adjusted operating total net revenues

    62

     

     

    66

     

    (6)%

    62

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

    (3

    )

     

    (3

    )

    (3

    )

    Interest credited to fixed accounts

     

     

     

     

    Benefits, claims, losses and settlement expenses

    58

     

     

    194

     

    70%

    52

     

    (12)%

    Amortization of deferred acquisition costs

     

     

     

     

    Interest and debt expense

    3

     

     

    3

     

    2

     

    (50)%

    General and administrative expense

    5

     

     

    7

     

    29%

    8

     

    38%

    Adjusted operating expenses

    63

     

     

    201

     

    69%

    59

     

    (7)%

    Pretax adjusted operating earnings (loss)

    $

    (1

    )

     

    $

    (135

    )

    99%

    $

    3

     

    NM

     

     

     

     

     

     

     

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

     

     

     

     

     

     

    Active Life Reserves

    $

    2,501

     

     

    $

    2,472

     

    1%

    $

    2,514

     

    (1)%

    Disabled Life Reserves

    558

     

     

    568

     

    (2)%

    548

     

    2%

    Total long term care policyholder reserves, net of reinsurance

    $

    3,059

     

     

    $

    3,040

     

    1%

    $

    3,062

     

     

     

     

     

     

     

     

    (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 Adjusted Operating Results and Metrics

    (in millions, unaudited)

    3 Qtr 2021

    3 Qtr 2020

    % Over/

    (Under)

    2 Qtr 2021

    % Over/

    (Under)

     

     

     

     

     

     

     

     

     

    Fixed Annuities Adjusted Operating Income Statements

     

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

     

     

    Management and financial advice fees

    $

     

     

    $

     

     

    $

     

     

    Distribution fees

     

     

     

     

     

     

    Net investment income

    12

     

     

    67

     

     

    (82)%

    61

     

     

    (80)%

    Premiums, policy and contract charges

     

     

     

     

     

     

    Other revenues

    55

     

     

    10

     

     

    NM

    13

     

     

    NM

    Total revenues

    67

     

     

    77

     

     

    (13)%

    74

     

     

    (9)%

    Banking and deposit interest expense

     

     

     

     

     

     

    Adjusted operating total net revenues

    67

     

     

    77

     

     

    (13)%

    74

     

     

    (9)%

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

     

     

    Distribution expenses

    1

     

     

    1

     

     

    1

     

     

    Interest credited to fixed accounts

    64

     

     

    66

     

     

    3%

    62

     

     

    (3)%

    Benefits, claims, losses and settlement expenses

    1

     

     

    9

     

     

    89%

    2

     

     

    50%

    Amortization of deferred acquisition costs

    1

     

     

    (2

    )

     

    NM

    2

     

     

    50%

    Interest and debt expense

     

     

    6

     

     

    NM

    6

     

     

    NM

    General and administrative expense

    7

     

     

    6

     

     

    (17)%

    7

     

     

    Adjusted operating expenses

    74

     

     

    86

     

     

    14%

    80

     

     

    8%

    Pretax adjusted operating earnings (loss)

    $

    (7

    )

     

    $

    (9

    )

     

    22%

    $

    (6

    )

     

    (17)%

     

     

     

     

     

     

     

     

     

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

    Ameriprise Financial, Inc.

    Eliminations (1) Adjusted Operating Results

    (in millions, unaudited)

    3 Qtr 2021

     

    3 Qtr 2020

    % Over/

    (Under)

    2 Qtr 2021

    % Over/

    (Under)

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

    (38

    )

     

    $

    (37

    )

    (3)%

    $

    (38

    )

    Distribution fees

    (348

    )

     

    (294

    )

    (18)%

    (350

    )

    1%

    Net investment income

    (1

    )

     

    (4

    )

    75%

    (5

    )

    80%

    Premiums, policy and contract charges

    (8

    )

     

    (7

    )

    (14)%

    (7

    )

    (14)%

    Other revenues

     

     

     

     

    Total revenues

    (395

    )

     

    (342

    )

    (15)%

    (400

    )

    1%

    Banking and deposit interest expense

     

     

     

    (1

    )

    NM

    Adjusted operating total net revenues

    (395

    )

     

    (342

    )

    (15)%

    (399

    )

    1%

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

    (373

    )

     

    (318

    )

    17%

    (375

    )

    (1)%

    Interest credited to fixed accounts

     

     

     

     

    Benefits, claims, losses and settlement expenses

    (6

    )

     

    (4

    )

    50%

    (5

    )

    20%

    Amortization of deferred acquisition costs

     

     

     

     

    Interest and debt expense

    (3

    )

     

    (2

    )

    50%

    (3

    )

    General and administrative expense

    (13

    )

     

    (18

    )

    (28)%

    (16

    )

    (19)%

    Adjusted operating expenses

    (395

    )

     

    (342

    )

    15%

    (399

    )

    (1)%

    Pretax adjusted operating earnings (loss)

    $

     

     

    $

     

    $

     

     

     

     

     

     

     

     

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

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

     

    Ameriprise Financial, Inc.

     

    Capital Information

     

    (in millions, unaudited)

    September 30,
    2021

    September 30,
    2020

    June 30,
    2021

     

     

     

     

     

     

     

    Long-term Debt Summary

     

     

     

     

     

     

    Senior notes

    $

    2,800

     

     

    $

    2,800

     

     

    $

    2,800

     

     

    Finance lease liabilities

    41

     

     

    47

     

     

    44

     

     

    Fair value of hedges, unamortized discount and debt issuance costs

    (10

    )

     

    (14

    )

     

    (11

    )

     

    Total Ameriprise Financial long-term debt

    2,831

     

     

    2,833

     

     

    2,833

     

     

    Non-recourse debt of consolidated investment entities

    2,163

     

     

    1,901

     

     

    2,558

     

     

    Total long-term debt

    $

    4,994

     

     

    $

    4,734

     

     

    $

    5,391

     

     

     

     

     

     

     

     

     

    Total Ameriprise Financial long-term debt

    $

    2,831

     

     

    $

    2,833

     

     

    $

    2,833

     

     

    Fair value of hedges, unamortized discount and debt issuance costs

    10

     

     

    14

     

     

    11

     

     

    Finance lease liabilities

    (41

    )

     

    (47

    )

     

    (44

    )

     

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

    $

    2,800

     

     

    $

    2,800

     

     

    $

    2,800

     

     

     

     

     

     

     

     

     

    Total equity (1)

    $

    5,707

     

     

    $

    6,067

     

     

    $

    5,686

     

     

    Equity of consolidated investment entities

    (5

    )

     

    (5

    )

     

    (6

    )

     

    Total equity excluding CIEs

    $

    5,702

     

     

    $

    6,062

     

     

    $

    5,680

     

     

     

     

     

     

     

     

     

    Total Ameriprise Financial capital

    $

    8,538

     

     

    $

    8,900

     

     

    $

    8,519

     

     

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

    $

    8,502

     

     

    $

    8,862

     

     

    $

    8,480

     

     

     

     

     

     

     

     

     

    Debt to capital

     

     

     

     

     

     

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

    33.2

     

    %

    31.8

     

    %

    33.3

     

    %

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

    32.9

     

    %

    31.6

     

    %

    33.0

     

    %

     

     

     

     

     

     

     

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

     

     

     

    Ameriprise Financial, Inc.

    Consolidated Balance Sheets

    (in millions, unaudited)

    September 30,
    2021

     

    December 31,
    2020

     

     

     

     

     

     

    Assets

     

     

     

     

    Cash and cash equivalents

    $

    7,736

     

     

    $

    6,751

     

     

    Cash of consolidated investment entities

    68

     

     

    94

     

     

    Investments

    33,518

     

     

    41,031

     

     

    Investments of consolidated investment entities

    2,170

     

     

    1,918

     

     

    Separate account assets

    95,129

     

     

    92,611

     

     

    Receivables

    15,920

     

     

    7,819

     

     

    Receivables of consolidated investment entities

    18

     

     

    16

     

     

    Deferred acquisition costs

    2,735

     

     

    2,532

     

     

    Restricted and segregated cash and investments

    2,351

     

     

    2,558

     

     

    Other assets

    11,079

     

     

    10,551

     

     

    Other assets of consolidated investment entities

    2

     

     

    2

     

     

    Total Assets

    $

    170,726

     

     

    $

    165,883

     

     

     

     

     

     

     

    Liabilities

     

     

     

     

    Policyholder account balances, future policy benefits and claims

    $

    34,864

     

     

    $

    33,992

     

     

    Separate account liabilities

    95,129

     

     

    92,611

     

     

    Customer deposits

    18,693

     

     

    17,641

     

     

    Short-term borrowings

    200

     

     

    200

     

     

    Long-term debt

    2,831

     

     

    2,831

     

     

    Debt of consolidated investment entities

    2,163

     

     

    1,913

     

     

    Accounts payable and accrued expenses

    2,146

     

     

    1,998

     

     

    Other liabilities

    8,922

     

     

    8,761

     

     

    Other liabilities of consolidated investment entities

    71

     

     

    69

     

     

    Total Liabilities

    165,019

     

     

    160,016

     

     

     

     

     

     

     

    Equity

     

     

     

     

    Ameriprise Financial

     

     

     

     

    Common shares ($.01 par)

    3

     

     

    3

     

     

    Additional paid-in capital

    9,118

     

     

    8,822

     

     

    Retained earnings

    16,955

     

     

    15,292

     

     

    Treasury stock

    (20,468

    )

     

    (18,879

    )

     

    Accumulated other comprehensive income, net of tax

    99

     

     

    629

     

     

    Total Equity

    5,707

     

     

    5,867

     

     

    Total Liabilities and Equity

    $

    170,726

     

     

    $

    165,883

     

     

     

     

     

     

     

    Ameriprise Financial, Inc.

     

    Disclosed Items – Included in Adjusted Operating Earnings

     

    (in millions, unaudited)

     

    3 Qtr 2021

     

     

     

     

     

     

     

     

     

    RPS

     

    Corporate

     

     

     

    Valuation Assumption &

    Model Changes (1)

     

    Valuation Assumption &

    Model Changes (1)

     

    Revenues

     

     

     

     

     

    Management and financial advice fees

     

    $

     

     

    $

     

     

    Distribution fees

     

     

     

     

     

    Net investment income

     

    19

     

     

     

     

    Premiums, policy and contract charges

     

     

     

     

     

    Other revenues

     

     

     

     

     

    Total revenues

     

    19

     

     

     

     

    Banking and deposit interest expense

     

     

     

     

     

    Adjusted operating total net revenues

     

    19

     

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

    Distribution expenses

     

     

     

     

     

    Interest credited to fixed accounts

     

     

     

     

     

    Benefits, claims, losses and settlement expenses

     

    89

     

     

    3

     

     

    Amortization of deferred acquisition costs

     

    (65

    )

     

     

     

    Interest and debt expense

     

     

     

     

     

    General and administrative expense

     

     

     

     

     

    Adjusted operating expenses

     

    24

     

     

    3

     

     

    Pretax adjusted operating earnings (loss)

     

    $

    (5

    )

     

    $

    (3

    )

     

     

     

     

     

     

     

    (1) Net pretax impact of model changes and the annual review/updating of valuation assumptions, including the annual long term care review

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Earnings

     

    Quarter Ended

    September 30,

     

    Per Diluted Share

    Quarter Ended

    September 30,

     

    % Over/

    (Under)

    (in millions, except per share amounts, unaudited)

    2021

     

    2020

     

    2021

     

    2020

     

    Net income

    $

    1,031

     

     

    $

    (140

    )

     

    $

    8.65

     

     

    $

    (1.14

    )

    (3)

    NM

    Add: Basic to diluted share conversion

     

     

     

     

     

     

    0.02

     

    (4)

     

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

    12

     

     

    4

     

     

    0.10

     

     

    0.03

     

     

     

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

    94

     

     

    431

     

     

    0.79

     

     

    3.45

     

     

     

    Add: Mean reversion-related impacts (1)

    (9

    )

     

    (17

    )

     

    (0.08

    )

     

    (0.14

    )

     

     

    Add: Market impact of hedges on investments (1)

    23

     

     

     

     

    0.19

     

     

     

     

     

    Less: Block transfer reinsurance transaction impacts (1)

    (521

    )

     

     

     

    (4.37

    )

     

     

     

     

    Add: Integration/restructuring charges (1)

    7

     

     

    1

     

     

    0.06

     

     

    0.01

     

     

     

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

    2

     

     

     

     

    0.02

     

     

     

     

     

    Add: Tax effect of adjustments (2)

    88

     

     

    (87

    )

     

    0.74

     

     

    (0.70

    )

     

     

    Adjusted operating earnings

    $

    699

     

     

    $

    184

     

     

    $

    5.86

     

     

    $

    1.47

     

     

    NM

    Less: Pretax impact of annual unlocking/loss recognition

    (8

    )

     

    (442

    )

     

    (0.07

    )

     

    (3.54

    )

     

     

    Less: Tax effect of annual unlocking/loss recognition

    2

     

     

    93

     

     

    0.02

     

     

    0.74

     

     

     

    Adjusted operating earnings excluding Unlocking

    $

    705

     

     

    $

    533

     

     

    $

    5.91

     

     

    $

    4.27

     

     

    38%

     

     

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding:

     

     

     

     

     

     

     

     

     

    Basic

    116.4

     

     

    123.0

     

     

     

     

     

     

     

    Diluted

    119.2

     

     

    124.9

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (1) Pretax adjusted operating adjustment.

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

    (3) Diluted shares used in this calculation represent basic shares due to the net loss. Using actual diluted shares would result in antidilution.

    (4) Represents the difference of the per share amount for net loss using basic shares compared to the per share amount for net loss using diluted shares.

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

    Ameriprise Financial, Inc.

    Reconciliation Table: Earnings

     

    Year-to-date

    September 30,

     

    Per Diluted Share

    Year-to-date

    September 30,

     

    % Over/

    (Under)

    (in millions, except per share amounts, unaudited)

    2021

     

    2020

     

    2021

     

    2020

     

    Net income

    $

    2,059

     

     

    $

    1,357

     

     

    $

    17.03

     

     

    $

    10.73

     

     

    59%

    Add: Basic to diluted share conversion

     

     

     

     

     

     

     

     

     

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

    78

     

     

    (18

    )

     

    0.65

     

     

    (0.14

    )

     

     

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

    577

     

     

    (239

    )

     

    4.78

     

     

    (1.89

    )

     

     

    Add: Mean reversion-related impacts (1)

    (107

    )

     

    30

     

     

    (0.89

    )

     

    0.24

     

     

     

    Add: Market impact of hedges on investments (1)

    40

     

     

     

     

    0.33

     

     

     

     

     

    Add: Block transfer reinsurance transaction impacts (1)

    (521

    )

     

     

     

    (4.31

    )

     

     

     

     

    Add: Integration/restructuring charges (1)

    14

     

     

    4

     

     

    0.12

     

     

    0.03

     

     

     

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

    (1

    )

     

    (2

    )

     

    (0.01

    )

     

    (0.01

    )

     

     

    Add: Tax effect of adjustments (2)

    16

     

     

    39

     

     

    0.13

     

     

    0.31

     

     

     

    Adjusted operating earnings

    $

    2,001

     

     

    $

    1,211

     

     

    $

    16.55

     

     

    $

    9.57

     

     

    73%

    Less: Pretax impact of annual unlocking/loss recognition

    (8

    )

     

    (442

    )

     

    (0.07

    )

     

    (3.49

    )

     

     

    Less: Tax effect of annual unlocking/loss recognition

    2

     

     

    93

     

     

    0.02

     

     

    0.73

     

     

     

    Adjusted operating earnings excluding Unlocking

    $

    2,007

     

     

    $

    1,560

     

     

    $

    16.60

     

     

    $

    12.33

     

     

    35%

     

     

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding:

     

     

     

     

     

     

     

     

     

    Basic

    118.2

     

     

    124.8

     

     

     

     

     

     

     

    Diluted

    120.9

     

     

    126.5

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (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

    September 30,

     

     

    (in millions, unaudited)

    2021

     

    2020

     

     

    Total net revenues

    $

    2,903

     

     

    $

    3,003

     

     

     

    Less: Net realized investment gains (losses)

    14

     

     

    4

     

     

     

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

    (1

    )

     

    1

     

     

     

    Less: Mean Reversion related impacts

     

     

     

     

     

    Less: Market impact of hedges on investments

    (23

    )

     

     

     

     

    Less: Block transfer reinsurance transaction impacts

    (644

    )

     

     

     

     

    Less: Integration/restructuring charges

     

     

     

     

     

    Less: CIEs revenue

    42

     

     

    21

     

     

     

    Adjusted operating total net revenues

    3,515

     

     

    2,977

     

     

     

    Less: Annual unlocking/loss recognition

    19

     

     

    (1

    )

     

     

    Adjusted operating total net revenues excluding Unlocking

    $

    3,496

     

     

    $

    2,978

     

     

     

     

     

     

     

     

     

    Total expenses

    $

    1,633

     

     

    $

    3,187

     

     

     

    Less: CIEs expenses

    40

     

     

    21

     

     

     

    Less: Integration/restructuring charges

    7

     

     

    1

     

     

     

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

    93

     

     

    432

     

     

     

    Less: Mean reversion-related impacts

    (9

    )

     

    (17

    )

     

     

    Less: Block transfer reinsurance transaction impacts

    (1,165

    )

     

     

     

     

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

    2

     

     

     

     

     

    Adjusted operating expenses

    $

    2,665

     

     

    $

    2,750

     

     

     

    Less: Annual unlocking/loss recognition

    27

     

     

    441

     

     

     

    Adjusted operating total net expenses excluding Unlocking

    $

    2,638

     

     

    $

    2,309

     

     

     

     

     

     

     

     

     

    Pretax income

    $

    1,270

     

     

    $

    (184

    )

     

     

    Pretax adjusted operating earnings

    $

    850

     

     

    $

    227

     

     

     

    Pretax adjusted operating earnings excluding Unlocking

    $

    858

     

     

    $

    669

     

     

     

     

     

     

     

     

     

    Pretax income margin

    43.7

     

    %

    (6.1

    )

    %

     

    Pretax adjusted operating margin

    24.2

     

    %

    7.6

     

    %

     

    Pretax adjusted operating margin excluding Unlocking

    24.5

     

    %

    22.5

     

    %

     

     

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Effective Tax Rate

     

    Quarter Ended

    September 30, 2020

     

    (in millions, unaudited)

    GAAP

     

    Adjusted Operating

    Pretax income

    $

    (184

    )

     

    $

    227

     

     

    Income tax provision

    $

    (44

    )

     

    $

    43

     

     

     

     

     

     

     

    Effective tax rate

    23.5

     

    %

    18.9

     

    %

     

     

     

     

     

     

    Quarter Ended

    September 30, 2021

     

    (in millions, unaudited)

    GAAP

     

    Adjusted Operating

    Pretax income

    $

    1,270

     

     

    $

    850

     

     

    Income tax provision

    $

    239

     

     

    $

    151

     

     

     

     

     

     

     

    Effective tax rate

    18.8

     

    %

    17.8

     

    %

     

     

     

     

     

     

    Year-to-date

    September 30, 2021

     

    (in millions, unaudited)

    GAAP

     

    Adjusted Operating

    Pretax income

    $

    2,484

     

     

    $

    2,410

     

     

    Income tax provision

    $

    425

     

     

    $

    409

     

     

     

     

     

     

     

    Effective tax rate

    17.1

     

    %

    17.0

     

    %

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Advice & Wealth Management Adjusted Revenue Per Advisor

    (unaudited)

    4Q

    2019

     

    1Q

    2020

     

    2Q

    2020

     

    3Q

    2020

     

    4Q

    2020

     

    1Q

    2021

     

    2Q

    2021

     

    3Q

    2021

     

    % Over/

    (Under)

    Total Net Revenue ($ in M)

    $

    1,710

     

     

    $

    1,695

     

     

    $

    1,537

     

    $

    1,667

     

    $

    1,776

     

    $

    1,879

     

    $

    1,980

     

    $

    2,048

     

     

    Interest Revenue ($ in M)

    $

    (92

    )

     

    $

    (78

    )

     

    $

     

    $

     

    $

     

    $

     

    $

     

    $

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Advisor Count

    9,871

     

     

    9,878

     

     

    9,894

     

    9,905

     

    9,922

     

    10,031

     

    10,047

     

    10,073

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Revenue Per Advisor ($ in K)

    $

    173

     

     

    $

    172

     

     

    $

    155

     

    $

    168

     

    $

    179

     

    $

    187

     

    $

    197

     

    $

    203

     

    21%

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

    $

    164

     

     

    $

    164

     

     

    $

    155

     

    $

    168

     

    $

    179

     

    $

    187

     

    $

    197

     

    $

    203

     

    21%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Revenue Per Advisor TTM ($ in K)

     

     

     

     

     

     

    $

    668

     

     

     

     

     

     

     

    $

    766

     

    15%

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

     

     

     

     

     

     

    $

    651

     

     

     

     

     

     

     

    $

    766

     

    18%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Pretax Adjusted Operating Earnings Mix Shift

     

    Quarter Ended

    September 30,

     

    (in millions, unaudited)

    2021

     

    2020

     

     

     

    Advice & Wealth Management

    $

    459

     

     

    $

    320

     

     

    Asset Management

    285

     

     

    198

     

     

    RPS

    187

     

     

    (89

    )

     

    Pretax adjusted operating earnings

    931

     

     

    429

     

     

     

     

     

     

     

    Advice & Wealth Management

    49

     

    %

    75

     

    %

    Asset Management

    31

     

    %

    46

     

    %

    RPS

    20

     

    %

    (21

    )

    %

    Subtotal pretax adjusted operating earnings

    100

     

    %

    100

     

    %

    AWM & AM

    80

     

    %

    121

     

    %

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Return on Equity (ROE) Excluding Accumulated

    Other Comprehensive Income “AOCI”

     

    Twelve Months Ended

    September 30,

     

    (in millions, unaudited)

    2021

     

    2020

     

    Net income

    $

    2,236

     

     

    $

    1,820

     

     

     

    Less: Adjustments (1)

    (324

    )

     

    58

     

     

     

    Adjusted operating earnings

    2,560

     

     

    1,762

     

     

     

    Less: Annual unlocking/loss recognition, net of tax (2)

    (6

    )

     

    (349

    )

     

     

    Adjusted operating earnings excluding Unlocking

    $

    2,566

     

     

    $

    2,111

     

     

     

     

     

     

     

     

     

    Total Ameriprise Financial, Inc. shareholders’ equity

    $

    5,766

     

     

    $

    6,197

     

     

     

    Less: Accumulated other comprehensive income, net of tax

    404

     

     

    243

     

     

     

    Total Ameriprise Financial, Inc. shareholders’ equity excluding AOCI

    5,362

     

     

    5,954

     

     

     

    Less: Equity impacts attributable to the consolidated investment entities

    3

     

     

     

     

     

    Adjusted operating equity

    $

    5,359

     

     

    $

    5,954

     

     

     

     

     

     

     

     

     

    Return on equity excluding AOCI

    41.7

     

    %

    30.6

     

    %

     

    Adjusted operating return on equity excluding AOCI (3)

    47.8

     

    %

    29.6

     

    %

     

    Adjusted operating return on equity excluding AOCI and Unlocking

    47.9

     

    %

    35.5

     

    %

     

     

     

     

     

     

     

    (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; block transfer reinsurance transaction impactsgain 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) After-tax is calculated using the statutory tax rate of 21%.

    (3) 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; block transfer reinsurance transaction 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

    Originally Posted at Business Wire on October 26, 2021 by Ameriprise.

    Categories: Industry Articles
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