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  • Ameriprise Financial Reports Third Quarter 2022 Results

    October 31, 2022 by Ameriprise Financial, Inc.

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

         

    Earnings Per Diluted Share

     

    Return on Equity, ex AOCI (1)

     

    Q3 2022

     

     

    Q3 2022

    GAAP

    $4.86

     

    GAAP

    47.1%

    Adjusted Operating

    $5.24

     

    Adjusted Operating

    45.6%

    Adjusted Operating Ex. Unlocking (2)

    $6.43

     

    Adjusted Operating Ex. Unlocking (2)

    47.9%

             
    • Third quarter adjusted operating earnings per diluted share excluding unlocking was $6.43, up 9 percent from the prior year period driven by strong business performance in Wealth Management and stable financial performance in Retirement & Protection Solutions. The benefit of higher interest rates was offset by market depreciation and unfavorable foreign exchange translation.

     

    Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer

     

    “Ameriprise delivered another good quarter demonstrating the strength of our business and ability to navigate periods of heightened volatility and market dislocation.

     

    “Our advice value proposition and deep client relationships differentiate Ameriprise. In the quarter, total client net flows were up significantly to more than $11 billion, and we continue to generate good growth in advisor productivity. In addition, growth in our cash business and Bank drove higher spread income in Wealth Management that more than offset equity market depreciation in our businesses.

     

    “The business consistently generates strong free cash flow from contributions across our diversified firm that we invest in the business and return to shareholders. Our balance sheet remains a core strength, and in the quarter, we returned $632 million to shareholders and remain on track to return 90% of our adjusted operating earnings to shareholders this year, building on our long record of attractive shareholder returns.”

    • Third quarter GAAP net income per diluted share was $4.86 compared to $8.65 a year ago, primarily reflecting the net realized gains on investments related to the fixed annuity reinsurance transaction in the prior year period.

     

    • Adjusted operating net revenue was $3.5 billion, a 1 percent increase driven by strong Wealth Management growth, partially offset by lower revenue from Asset Management due to market depreciation.

     

    • Assets under management and administration were $1.1 trillion, down 9 percent, as significant market depreciation more than offset $64 billion of cumulative net inflows over the past twelve months.

     

    • Ameriprise Bank approximately doubled in size from a year ago to $18.6 billion. The Bank represents a significant opportunity to capture sustainable benefits from widening spreads and rising rates. The gross fee yield increased nearly 100 basis points sequentially.

     

    • Long-term investment performance at Columbia Threadneedle Investments remains excellent with 130 funds with 4- and 5-star Morningstar ratings and more than 70 percent of funds above median on an asset-weighted basis over 3-, 5- and 10-year time periods.

     

    • The company returned $632 million of capital to shareholders in the quarter and remains on track to return 90 percent of operating earnings to shareholders during the year.

     

    (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)

    2022

     

    2021

     

    2022

    2021

    GAAP net income

    $

    548

     

    $

    1,031

     

    (47

    )%

     

    $

    2,065

     

    $

    2,059

     

     

    Adjusted operating earnings

    $

    591

     

    $

    699

     

    (15

    )%

     

    $

    1,951

     

    $

    2,001

     

    (2

    )%

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

    $

    725

     

    $

    705

     

    3

    %

     

    $

    2,085

     

    $

    2,007

     

    4

    %

     

     

     

     

     

     

     

     

     

     

    GAAP net income per diluted share

    $

    4.86

     

    $

    8.65

     

    (44

    )%

     

    $

    18.05

     

    $

    17.03

     

    6

    %

    Adjusted operating earnings per diluted share

    $

    5.24

     

    $

    5.86

     

    (11

    )%

     

    $

    17.05

     

    $

    16.55

     

    3

    %

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

    $

    6.43

     

    $

    5.91

     

    9

    %

     

    $

    18.23

     

    $

    16.60

     

    10

    %

     

     

     

     

     

     

     

     

     

     

    GAAP Return on Equity, ex. AOCI

     

    47.1

    %

     

    41.7

    %

     

     

     

    47.1

    %

     

    41.7

    %

     

    Adjusted Operating Return on Equity, ex. AOCI

     

    45.6

    %

     

    47.8

    %

     

     

     

    45.6

    %

     

    47.8

    %

     

    Adjusted Operating Return on Equity, ex. AOCI and unlocking

     

    47.9

    %

     

    47.9

    %

     

     

     

    47.9

    %

     

    47.9

    %

     

     

     

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding:

     

     

     

     

     

     

     

     

     

    Basic

     

    110.5

     

     

    116.4

     

     

     

     

    112.1

     

     

    118.2

     

     

    Diluted

     

    112.7

     

     

    119.2

     

     

     

     

    114.4

     

     

    120.9

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Current quarter GAAP results after tax included $9 million of integration costs from the acquisition of BMO EMEA and net realized investment losses of $73 million primarily from portfolio repositioning to capture the benefit of higher interest rates. GAAP results in the prior year quarter were positively impacted by net realized gains on investments that transferred as part of the fixed annuity reinsurance transaction that closed in that period.

    The company completed its annual actuarial assumption update in the quarter, which resulted in an unfavorable $134 million, or $1.19 per share, impact on operating results.

     

    Ameriprise Financial, Inc.

    Advice & Wealth Management Segment Adjusted Operating Results

     

    Quarter Ended September 30,

    % Over/
    (Under)

    (in millions, unaudited)

    2022

    2021

    Adjusted operating net revenues

    $

    2,137

     

    $

    2,048

     

    4

    %

     

     

     

     

     

     

    Distribution expenses

     

    1,149

     

     

    1,238

     

    7

    %

    G&A / other expense

     

    393

     

     

    351

     

    (12

    )%

    Adjusted operating expenses

     

    1,542

     

     

    1,589

     

    3

    %

    Pretax adjusted operating earnings

    $

    595

     

    $

    459

     

    30

    %

     

     

     

     

     

     

    Pretax adjusted operating margin

     

    27.8

    %

     

    22.4

    %

    540 bps

     

     

     

     

     

     

     

     

    Quarter Ended September 30,

    % Over/
    (Under)

    (in billions, unless otherwise noted)

    2022

    2021

    Total client assets

    $

    711

    $

    811

    (12

    )%

    Total client net flows (1)

    $

    11.2

    $

    10.0

    11

    %

    Wrap net flows (1)

    $

    6.4

    $

    9.4

    (31

    )%

    AWM cash balance

    $

    46.3

    $

    40.1

    16

    %

    Average gross yield on cash balances (in bps)

     

    251

     

    64

     

    Adjusted operating net revenue per advisor (TTM in thousands)

    $

    819

    $

    766

    7

    %

     

     

     

     

    (1) See definition on page 11.

    Advice & Wealth Management pretax adjusted operating earnings increased 30 percent driven by client net inflows and higher interest rates, partially offset by continued market dislocation and lower activity levels. Pretax adjusted operating margin was 27.8 percent, up 540 basis points.

    Net revenues grew 4 percent as strong client flows, bank growth and higher interest rates more than offset the impact of market depreciation on fee-based revenues and lower activity levels consistent with the industry.

    Adjusted operating expenses of $1.5 billion were 3 percent lower than the year ago quarter. Distribution expenses declined 7 percent, while G&A and other expenses were $393 million, reflecting investments for business growth and higher volume-related activity from continued cumulative net flows. In addition, G&A expenses a year ago were unusually low as a result of the timing of expenses, lower staffing levels and limited T&E expense. On year-to-date basis, G&A expenses increased 7 percent, which was in line with management expectations.

    The Wealth Management business delivered strong fundamental growth in the quarter with total client net flows up 11 percent to $11.2 billion in the face of volatile markets. Clients and advisors remained engaged and focused on defensively positioning portfolios to help meet financial planning goals.

    • Total client net flows included $6.4 billion of flows into wrap accounts and $4.8 billion into non-advisory accounts, a mix shift that reflects the current market environment.
    • Cash balances increased 16 percent from the prior year to $46.3 billion and decreased 2 percent on a sequential basis.
    • Ameriprise Bank grew to $18.6 billion, up $8.8 billion from a year ago. The Bank provides important flexibility to enhance earnings in a rising interest rate environment.
    • Adjusted operating net revenue per advisor on a trailing 12-month basis was $819,000, up 7 percent from enhanced productivity and business growth.
    • Total advisors increased 2 percent to 10,282, reflecting excellent advisor retention, as well as the addition of 89 experienced advisors in the quarter.
     

    Ameriprise Financial, Inc.

    Asset Management Segment Adjusted Operating Results

     

    Quarter Ended September 30,

     

    % Over/
    (Under)

    (in millions, unaudited)

    2022

     

    2021

     

    Adjusted operating net revenues

    $

    823

     

     

    $

    915

     

     

    (10

    )%

     

     

     

     

     

     

    Distribution expenses

     

    238

     

     

     

    288

     

     

    17

    %

    G&A / other expenses

     

    394

     

     

     

    342

     

     

    (15

    )%

    Adjusted operating expenses

    $

    632

     

     

    $

    630

     

     

     

    Pretax adjusted operating earnings

    $

    191

     

     

    $

    285

     

     

    (33

    )%

     

     

     

     

     

     

    Net pretax adjusted operating margin (1)

     

    35.6

    %

     

     

    48.9

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Quarter Ended September 30,

     

    % Over/
    (Under)

    (in billions)

    2022

     

    2021

     

    Total segment AUM

    $

    546

     

     

    $

    583

     

     

    (6

    )%

     

     

     

     

     

     

    Net Flows

     

     

     

     

     

    Global Retail net flows

    $

    (5.3

    )

     

    $

    1.8

     

     

    NM

     

    Global Institutional net flows, ex. legacy insurance partners flows

     

    3.9

     

     

     

    3.5

     

     

    13

    %

    Legacy insurance partners flows

     

    (1.0

    )

     

     

    (1.4

    )

     

    25

    %

    Total segment net flows

    $

    (2.4

    )

     

    $

    3.9

     

     

    NM

     

     

     

     

     

     

     

    Model delivery AUA Flows (2)

    $

    (0.5

    )

     

    $

    0.5

     

     

    NM

     

     

     

     

     

     

     

    (1) See reconciliation on page 13.

     

     

     

     

     

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

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

     

    Asset Management pretax adjusted operating earnings declined 33 percent to $191 million primarily from equity and bond market depreciation, unfavorable FX translation and net outflows. Adjusted operating net revenues declined 10 percent to $823 million. Net pretax adjusted operating margin was 35.6 percent, above our targeted range of 31 percent to 35 percent.

    Normalized for the BMO business, adjusted operating expenses declined 13 percent and G&A declined 7 percent from continued expense discipline and a benefit from foreign exchange. Distribution expenses decreased 17 percent primarily from market depreciation and lower sales.

    Total assets under management decreased 6 percent to $546 billion as market depreciation and foreign exchange translation more than offset the addition of the BMO business. Long term investment performance remained strong with more than 70 percent of funds above median on an asset-weighted basis over 3-, 5- and 10-year time periods across equity, fixed income and asset allocation strategies.

    In the quarter, net outflows were $2.4 billion and included $1.0 billion of outflows related to legacy insurance partners. Institutional inflows continued to partially offset elevated retail outflows.

    • Retail net outflows were $5.3 billion. In North America, there were outflows in equity and fixed income strategies from market volatility. In EMEA, outflows persisted as investor sentiment remained weak from higher interest rates and geopolitical strain.
    • Global institutional net inflows were $3.9 billion primarily from fixed income and liability-driven investing mandates.
     

    Ameriprise Financial, Inc.

    Retirement & Protection Solutions Segment Adjusted Operating Results

     

    Quarter Ended September 30,

     

    % Over/
    (Under)

    (in millions, unaudited)

    2022

     

    2021

     

    Adjusted operating net revenues

    $

    786

     

     

    $

    834

     

     

    (6

    )%

    Adjusted operating expenses

     

    755

     

     

     

    647

     

     

    (17

    )%

    Pretax adjusted operating earnings (including unlocking)

    $

    31

     

     

    $

    187

     

     

    (83

    )%

    Unlocking

     

    (172

    )

     

     

    (5

    )

     

    NM

     

    Pretax adjusted operating earnings excluding unlocking

    $

    203

     

     

    $

    192

     

     

    6

    %

     

     

     

     

     

     

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

               

    Retirement & Protection Solutions pretax adjusted operating earnings excluding unlocking were $203 million versus $192 million last year, a strong and stable result in this market environment. The business continued to generate strong free cash flow and a high return on capital.

    Retirement & Protection Solutions sales continued to reflect muted overall industry sales levels due to market volatility, as well as management actions to optimize our business mix. Protection sales decreased 29 percent to $65 million primarily related to market volatility. The majority of sales remain in higher margin accumulation VUL products. Variable annuity sales decreased 35 percent to $948 million, reflecting the discontinuation of sales with living benefit riders that was completed in June, as well as industry slowdown due to market dislocation.

     

    Ameriprise Financial, Inc.

    Corporate & Other Segment Adjusted Operating Results

     

    Quarter Ended September 30,

    % Over/
    (Under)

    (in millions, unaudited)

    2022

    2021

    Corporate & Other

    $

    (73

    )

     

    $

    (73

    )

     

    Closed Blocks (1)

     

    (6

    )

     

     

    (8

    )

    25

    %

    Pretax adjusted operating earnings

    $

    (79

    )

     

    $

    (81

    )

    2

    %

    Unlocking/loss recognition

     

    3

     

     

     

    (3

    )

    NM

     

    Pretax adjusted operating earnings excluding unlocking/loss recognition

    $

    (82

    )

     

    $

    (78

    )

    (5

    )%

     

     

     

     

     

    Long term care excluding unlocking/loss recognition

    $

    (3

    )

     

    $

    2

     

    NM

     

    Fixed Annuities excluding unlocking

     

    (6

    )

     

     

    (7

    )

    14

    %

    Pretax adjusted operating earnings excluding unlocking

    $

    (9

    )

     

    $

    (5

    )

    (80

    )%

     

     

     

     

     

    (1) Long Term Care and Fixed Annuities.

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

     

    Total Corporate & Other pretax adjusted operating loss was $79 million.

    Corporate & Other, excluding Closed Blocks, pretax adjusted operating loss was $73 million, in line with the prior year period.

    Long Term Care pretax adjusted operating loss was in line with expectations at $3 million.

    Fixed Annuities pretax adjusted operating loss excluding unlocking was in line with expectations at $6 million.

    Taxes

    The operating effective tax rate increased to 19.9 percent for the third quarter and 19.3 percent on a year-to-date basis. The effective tax rate is expected to be approximately 20 percent for the full year.

    About Ameriprise Financial

    At Ameriprise Financial, we have been helping people feel confident about their financial future for more than 125 years. With extensive 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, Columbia Threadneedle Asset Managers Limited, Columbia Threadneedle (EM) Investments Limited, and Pyrford International Ltd, are SEC- and FCA-registered investment adviser affiliates of Columbia Management Investment Advisers, LLC based in the U.K. RiverSource insurance and annuity products are issued by RiverSource Life Insurance Company, and in New York only by RiverSource Life Insurance Co. of New York, Albany, New York. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuity products in the state of New York. These companies are part of Ameriprise Financial, Inc. CA License #0684538. RiverSource Distributors, Inc. (Distributor), Member FINRA.

    Non-GAAP Financial Measures

    The company believes the presentation of adjusted operating 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, net pretax adjusted operating margin, consolidated tax rate, return of capital to shareholders, and excess capital position and financial flexibility to capture additional growth opportunities;
    • other statements about future economic performance, the performance of equity markets and interest rate variations and the economic performance of the United States and of global markets;
    • statements estimating the expected full year operating effective tax rate and
    • statements of assumptions underlying such statements.

    The words “believe,” “expect,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “forecast,” “on track,” “project,” ”continue,” “able to remain”, “resume,” “deliver,” “develop,” “evolve,” “drive,” ”enable,” “flexibility,” “commitment,” “scenario,” “case,” “appear,” “expands” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from such statements.

    Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Management cautions readers to carefully consider the risks described in the “Risk Factors” discussion under Part 1, Item 1A of and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2021 available at ir.ameriprise.com. Management undertakes no obligation to update publicly or revise any forward-looking statements.

    The financial results discussed in this news release represent past performance only, which may not be used to predict or project future results. The financial results and values presented in this news release are based upon asset valuations that represent estimates as of the date of this news release and may be revised in the company’s Form 10-Q for the period ended September 30, 2022.

    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 2022

     

    3 Qtr 2021

    % Over/
    (Under)

    2 Qtr 2022

    % Over/
    (Under)

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

    2,172

     

    $

    2,367

     

    (8

    )%

    $

    2,277

    (5

    )%

    Distribution fees

     

    506

     

     

    458

     

    10

    %

     

    458

    10

    %

    Net investment income

     

    349

     

     

    773

     

    (55

    )%

     

    287

    22

    %

    Premiums, policy and contract charges

     

    361

     

     

    (805

    )

    NM

     

     

    365

    (1

    )%

    Other revenues

     

    118

     

     

    113

     

    4

    %

     

    124

    (5

    )%

    Total revenues

     

    3,506

     

     

    2,906

     

    21

    %

     

    3,511

     

    Banking and deposit interest expense

     

    15

     

     

    3

     

    NM

     

     

    3

    NM

     

    Total net revenues

     

    3,491

     

     

    2,903

     

    20

    %

     

    3,508

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

     

    1,195

     

     

    1,285

     

    7

    %

     

    1,236

    3

    %

    Interest credited to fixed accounts

     

    157

     

     

    172

     

    9

    %

     

    145

    (8

    )%

    Benefits, claims, losses and settlement expenses

     

    370

     

     

    (719

    )

    NM

     

     

    82

    NM

     

    Amortization of deferred acquisition costs

     

    107

     

     

    9

     

    NM

     

     

    152

    30

    %

    Interest and debt expense

     

    52

     

     

    64

     

    19

    %

     

    44

    (18

    )%

    General and administrative expense

     

    925

     

     

    822

     

    (13

    )%

     

    894

    (3

    )%

    Total expenses

     

    2,806

     

     

    1,633

     

    (72

    )%

     

    2,553

    (10

    )%

    Pretax income

     

    685

     

     

    1,270

     

    (46

    )%

     

    955

    (28

    )%

    Income tax provision

     

    137

     

     

    239

     

    43

    %

     

    199

    31

    %

    Net income

    $

    548

     

    $

    1,031

     

    (47

    )%

    $

    756

    (28

    )%

     

     

     

     

     

     

     

    Earnings per share

     

     

     

     

     

     

    Basic earnings per share

    $

    4.96

     

    $

    8.86

     

     

    $

    6.73

     

    Earnings per diluted share

    $

    4.86

     

    $

    8.65

     

     

    $

    6.61

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding

     

     

     

     

     

     

    Basic

     

    110.5

     

     

    116.4

     

     

     

    112.3

     

    Diluted

     

    112.7

     

     

    119.2

     

     

     

    114.4

     

     

     

     

     

     

     

     

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

     
       

    Ameriprise Financial, Inc.

     

    Consolidated Highlights and Capital Summary

     

    (in millions unless otherwise noted, unaudited)

    3 Qtr 2022

     

    3 Qtr 2021

     

    % Over/
    (Under)

     

    2 Qtr 2022

     

    % Over/
    (Under)

     

     

     

     

     

     

     

     

     

     

     

     

    Assets Under Management and Administration

     

     

     

     

     

     

     

     

     

    Advice & Wealth Management AUM

    $

    382,364

     

     

    $

    431,861

     

     

    (11

    )%

     

    $

    396,303

     

     

    (4

    )%

     

    Asset Management AUM

     

    546,493

     

     

     

    583,398

     

     

    (6

    )%

     

     

    598,150

     

     

    (9

    )%

     

    Corporate AUM

     

    170

     

     

     

    104

     

     

    63

    %

     

     

    165

     

     

    3

    %

     

    Eliminations

     

    (35,494

    )

     

     

    (42,022

    )

     

    16

    %

     

     

    (37,453

    )

     

    5

    %

     

    Total Assets Under Management

     

    893,533

     

     

     

    973,341

     

     

    (8

    )%

     

     

    957,165

     

     

    (7

    )%

     

    Total Assets Under Administration

     

    207,965

     

     

     

    232,934

     

     

    (11

    )%

     

     

    212,944

     

     

    (2

    )%

     

    Total AUM and AUA

    $

    1,101,498

     

     

    $

    1,206,275

     

     

    (9

    )%

     

    $

    1,170,109

     

     

    (6

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    S&P 500

     

     

     

     

     

     

     

     

     

     

    Daily average

     

    3,983

     

     

     

    4,425

     

     

    (10

    )%

     

     

    4,110

     

     

    (3

    )%

     

    Period end

     

    3,586

     

     

     

    4,308

     

     

    (17

    )%

     

     

    3,785

     

     

    (5

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    Weighted Equity Index (WEI) (1)

     

     

     

     

     

     

     

     

     

     

    Daily average

     

    2,606

     

     

     

    2,983

     

     

    (13

    )%

     

     

    2,707

     

     

    (4

    )%

     

    Period end

     

    2,347

     

     

     

    2,909

     

     

    (19

    )%

     

     

    2,491

     

     

    (6

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    Common shares

     

     

     

     

     

     

     

     

     

     

    Beginning balance

     

    108.4

     

     

     

    114.3

     

     

    (5

    )%

     

     

    110.1

     

     

    (2

    )%

     

    Repurchases

     

    (1.8

    )

     

     

    (2.1

    )

     

    14

    %

     

     

    (1.8

    )

     

     

     

    Issuances

     

    0.1

     

     

     

    0.4

     

     

    (75

    )%

     

     

    0.1

     

     

     

     

    Other

     

     

     

     

    (0.2

    )

     

    NM

     

     

     

     

     

     

     

    Total common shares outstanding

     

    106.7

     

     

     

    112.4

     

     

    (5

    )%

     

     

    108.4

     

     

    (2

    )%

     

    Restricted stock units

     

    2.8

     

     

     

    3.0

     

     

    (7

    )%

     

     

    2.8

     

     

     

     

    Total basic common shares outstanding

     

    109.5

     

     

     

    115.4

     

     

    (5

    )%

     

     

    111.2

     

     

    (2

    )%

     

    Total potentially dilutive shares

     

    2.3

     

     

     

    2.9

     

     

    (21

    )%

     

     

    2.1

     

     

    10

    %

     

    Total diluted shares

     

    111.8

     

     

     

    118.3

     

     

    (5

    )%

     

     

    113.3

     

     

    (1

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    Capital Returned to Shareholders

     

     

     

     

     

     

     

     

     

     

    Dividends paid

    $

    140

     

     

    $

    133

     

     

    5

    %

     

    $

    142

     

     

    (1

    )%

     

    Common stock share repurchases

     

    492

     

     

     

    533

     

     

    (8

    )%

     

     

    458

     

     

    7

    %

     

    Total Capital Returned to Shareholders

    $

    632

     

     

    $

    666

     

     

    (5

    )%

     

    $

    600

     

     

    5

    %

     

     

     

     

     

     

     

     

     

     

     

     

    (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 2022

     

    3 Qtr 2021

     

    % Over/
    (Under)

     

    2 Qtr 2022

     

    % Over/
    (Under)

     

     

     

     

     

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

     

     

     

     

    Management and financial advice fees:

     

     

     

     

     

     

     

     

     

     

    Advisory fees

    $

    1,107

     

     

    $

    1,189

     

     

    (7

    )%

     

    $

    1,144

     

     

    (3

    )%

     

    Financial planning fees

     

    97

     

     

     

    91

     

     

    7

    %

     

     

    99

     

     

    (2

    )%

     

    Transaction and other fees

     

    93

     

     

     

    94

     

     

    (1

    )%

     

     

    97

     

     

    (4

    )%

     

    Total management and financial advice fees

     

    1,297

     

     

     

    1,374

     

     

    (6

    )%

     

     

    1,340

     

     

    (3

    )%

     

    Distribution fees:

     

     

     

     

     

     

     

     

     

     

    Mutual funds

     

    180

     

     

     

    219

     

     

    (18

    )%

     

     

    186

     

     

    (3

    )%

     

    Insurance and annuity

     

    205

     

     

     

    246

     

     

    (17

    )%

     

     

    216

     

     

    (5

    )%

     

    Off-Balance sheet brokerage cash (1)

     

    110

     

     

     

    15

     

     

    NM

     

     

     

    54

     

     

    NM

     

     

    Other products

     

    84

     

     

     

    81

     

     

    4

    %

     

     

    86

     

     

    (2

    )%

     

    Total distribution fees

     

    579

     

     

     

    561

     

     

    3

    %

     

     

    542

     

     

    7

    %

     

    Net investment income

     

    219

     

     

     

    62

     

     

    NM

     

     

     

    120

     

     

    83

    %

     

    Other revenues

     

    57

     

     

     

    54

     

     

    6

    %

     

     

    57

     

     

     

     

    Total revenues

     

    2,152

     

     

     

    2,051

     

     

    5

    %

     

     

    2,059

     

     

    5

    %

     

    Banking and deposit interest expense

     

    15

     

     

     

    3

     

     

    NM

     

     

     

    3

     

     

    NM

     

     

    Adjusted operating total net revenues

     

    2,137

     

     

     

    2,048

     

     

    4

    %

     

     

    2,056

     

     

    4

    %

     

     

     

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

     

     

     

     

    Distribution expenses

     

    1,149

     

     

     

    1,238

     

     

    7

    %

     

     

    1,185

     

     

    3

    %

     

    Interest and debt expense

     

    3

     

     

     

    3

     

     

     

     

     

    3

     

     

     

     

    General and administrative expense

     

    390

     

     

     

    348

     

     

    (12

    )%

     

     

    376

     

     

    (4

    )%

     

    Adjusted operating expenses

     

    1,542

     

     

     

    1,589

     

     

    3

    %

     

     

    1,564

     

     

    1

    %

     

    Pretax adjusted operating earnings

    $

    595

     

     

    $

    459

     

     

    30

    %

     

    $

    492

     

     

    21

    %

     

     

     

     

     

     

     

     

     

     

     

     

    Pretax adjusted operating margin

     

    27.8

    %

     

     

    22.4

    %

     

     

     

     

    23.9

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (1) Prior to Q1 2022, Off-Balance sheet brokerage cash was included in Other products. Prior periods have been restated.

     

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

     
       

    Ameriprise Financial, Inc.

     

    Advice & Wealth Management Segment Operating Metrics

     

    (in millions unless otherwise noted, unaudited)

    3 Qtr 2022

     

    3 Qtr 2021

     

    % Over/
    (Under)

     

    2 Qtr 2022

     

    % Over/
    (Under)

     

     

     

     

     

     

     

     

     

     

     

     

    AWM Total Client Assets

    $

    711,428

     

     

    $

    811,189

     

     

    (12

    )%

     

    $

    735,462

     

     

    (3

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    Total Client Flows (1)

    $

    11,164

     

     

    $

    10,043

     

     

    11

    %

     

    $

    8,572

     

     

    30

    %

     

     

     

     

     

     

     

     

     

     

     

     

    Total Wrap Accounts

     

     

     

     

     

     

     

     

     

     

    Beginning assets

    $

    399,287

     

     

    $

    430,003

     

     

    (7

    )%

     

    $

    447,046

     

     

    (11

    )%

     

    Net flows

     

    6,449

     

     

     

    9,404

     

     

    (31

    )%

     

     

    6,159

     

     

    5

    %

     

    Market appreciation (depreciation) and other

     

    (20,526

    )

     

     

    (4,032

    )

     

    NM

     

     

     

    (53,918

    )

     

    62

    %

     

    Total wrap ending assets

    $

    385,210

     

     

    $

    435,375

     

     

    (12

    )%

     

    $

    399,287

     

     

    (4

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    Advisory wrap account assets ending balance (2)

    $

    381,136

     

     

    $

    430,546

     

     

    (11

    )%

     

    $

    395,054

     

     

    (4

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    Brokerage Cash & Certificates Balances

     

     

     

     

     

     

     

     

     

     

    On-balance sheet (Net Investment Income)

     

     

     

     

     

     

     

     

     

     

    On-balance sheet – broker dealer

    $

    3,345

     

     

    $

    3,441

     

     

    (3

    )%

     

    $

    3,542

     

     

    (6

    )%

     

    On-balance sheet – bank

     

    18,594

     

     

     

    9,815

     

     

    89

    %

     

     

    15,520

     

     

    20

    %

     

    On-balance sheet – certificate

     

    6,202

     

     

     

    5,442

     

     

    14

    %

     

     

    5,284

     

     

    17

    %

     

    Total on-balance sheet

    $

    28,141

     

     

    $

    18,698

     

     

    51

    %

     

    $

    24,346

     

     

    16

    %

     

    Off-balance sheet (Distribution Fees)

     

     

     

     

     

     

     

     

     

     

    Off-balance sheet – broker dealer

    $

    18,155

     

     

    $

    21,374

     

     

    (15

    )%

     

    $

    23,102

     

     

    (21

    )%

     

    Total brokerage cash & certificates balances

    $

    46,296

     

     

    $

    40,072

     

     

    16

    %

     

    $

    47,448

     

     

    (2

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    Gross Fee Yield

     

     

     

     

     

     

     

     

     

     

    On-balance sheet – broker dealer

     

    1.74

    %

     

     

    0.06

    %

     

     

     

     

    0.49

    %

     

     

     

    On-balance sheet – bank (3)

     

    2.98

    %

     

     

    1.27

    %

     

     

     

     

    2.00

    %

     

     

     

    On-balance sheet – certificates

     

    2.75

    %

     

     

    1.06

    %

     

     

     

     

    1.53

    %

     

     

     

    Off-balance sheet – broker dealer

     

    2.13

    %

     

     

    0.28

    %

     

     

     

     

    0.90

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Weighted Average Gross Fee Yield (3)

     

    2.51

    %

     

     

    0.64

    %

     

     

     

     

    1.30

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Financial Advisors

     

     

     

     

     

     

     

     

     

     

    Employee advisors

     

    2,089

     

     

     

    2,112

     

     

    (1

    )%

     

     

    2,096

     

     

     

     

    Franchisee advisors

     

    8,193

     

     

     

    7,961

     

     

    3

    %

     

     

    8,149

     

     

    1

    %

     

    Total financial advisors

     

    10,282

     

     

     

    10,073

     

     

    2

    %

     

     

    10,245

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Advisor Retention

     

     

     

     

     

     

     

     

     

     

    Employee

     

    91.9

    %

     

     

    91.7

    %

     

     

     

     

    92.3

    %

     

     

     

    Franchisee

     

    94.4

    %

     

     

    94.3

    %

     

     

     

     

    94.4

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (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) 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.

     

    (3) As of Q4 2021, the Gross Fee Yield for prior periods have been restated.

     

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

     
       

    Ameriprise Financial, Inc.

     

    Asset Management Segment Adjusted Operating Results

     

    (in millions, unaudited)

    3 Qtr 2022

     

    3 Qtr 2021

     

    % Over/
    (Under)

     

    2 Qtr 2022

     

    % Over/
    (Under)

     

     

     

     

     

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

     

     

     

     

    Management and financial advice fees:

     

     

     

     

     

     

     

     

     

     

    Asset management fees:

     

     

     

     

     

     

     

     

     

     

    Retail

    $

    509

     

     

    $

    587

     

     

    (13

    )%

     

    $

    543

     

     

    (6

    )%

     

    Institutional

     

    159

     

     

     

    143

     

     

    11

    %

     

     

    173

     

     

    (8

    )%

     

    Transaction and other fees

     

    51

     

     

     

    57

     

     

    (11

    )%

     

     

    54

     

     

    (6

    )%

     

    Revenue from other sources (1)

     

    4

     

     

     

    7

     

     

    (43

    )%

     

     

    7

     

     

    (43

    )%

     

    Total management and financial advice fees

     

    723

     

     

     

    794

     

     

    (9

    )%

     

     

    777

     

     

    (7

    )%

     

    Distribution fees:

     

     

     

     

     

     

     

     

     

     

    Mutual funds

     

    56

     

     

     

    70

     

     

    (20

    )%

     

     

    58

     

     

    (3

    )%

     

    Insurance and annuity

     

    40

     

     

     

    50

     

     

    (20

    )%

     

     

    42

     

     

    (5

    )%

     

    Total distribution fees

     

    96

     

     

     

    120

     

     

    (20

    )%

     

     

    100

     

     

    (4

    )%

     

    Net investment income

     

    2

     

     

     

    1

     

     

    NM

     

     

     

     

     

     

     

    Other revenues

     

    2

     

     

     

     

     

     

     

     

    4

     

     

    (50

    )%

     

    Total revenues

     

    823

     

     

     

    915

     

     

    (10

    )%

     

     

    881

     

     

    (7

    )%

     

    Banking and deposit interest expense

     

     

     

     

     

     

     

     

     

     

     

     

     

    Adjusted operating total net revenues

     

    823

     

     

     

    915

     

     

    (10

    )%

     

     

    881

     

     

    (7

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

     

     

     

     

    Distribution expenses

     

    238

     

     

     

    288

     

     

    17

    %

     

     

    252

     

     

    6

    %

     

    Amortization of deferred acquisition costs

     

    2

     

     

     

    3

     

     

    33

    %

     

     

    3

     

     

    33

    %

     

    Interest and debt expense

     

    1

     

     

     

    1

     

     

     

     

     

    1

     

     

     

     

    General and administrative expense

     

    391

     

     

     

    338

     

     

    (16

    )%

     

     

    403

     

     

    3

    %

     

    Adjusted operating expenses

     

    632

     

     

     

    630

     

     

     

     

     

    659

     

     

    4

    %

     

    Pretax adjusted operating earnings

    $

    191

     

     

    $

    285

     

     

    (33

    )%

     

    $

    222

     

     

    (14

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    Net Pretax Adjusted Operating Margin Reconciliation

     

     

     

     

     

     

     

     

     

    Adjusted operating total net revenues

    $

    823

     

     

    $

    915

     

     

    (10

    )%

     

    $

    881

     

     

    (7

    )%

     

    Distribution pass thru revenues

     

    (187

    )

     

     

    (231

    )

     

    19

    %

     

     

    (200

    )

     

    7

    %

     

    Subadvisory and other pass thru revenues

     

    (91

    )

     

     

    (97

    )

     

    6

    %

     

     

    (91

    )

     

     

     

    Net adjusted operating revenues

    $

    545

     

     

    $

    587

     

     

    (7

    )%

     

    $

    590

     

     

    (8

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    Pretax adjusted operating earnings

    $

    191

     

     

    $

    285

     

     

    (33

    )%

     

    $

    222

     

     

    (14

    )%

     

    Adjusted operating net investment income

     

    (2

    )

     

     

    (1

    )

     

    NM

     

     

     

     

     

     

     

    Amortization of intangibles

     

    5

     

     

     

    3

     

     

    67

    %

     

     

    5

     

     

     

     

    Net adjusted operating earnings

    $

    194

     

     

    $

    287

     

     

    (32

    )%

     

    $

    227

     

     

    (15

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    Pretax adjusted operating margin

     

    23.2

    %

     

     

    31.1

    %

     

     

     

     

    25.2

    %

     

     

     

    Net pretax adjusted operating margin (2)

     

    35.6

    %

     

     

    48.9

    %

     

     

     

     

    38.5

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Performance fees (3)

     

     

     

     

     

     

     

     

     

     

    Performance fees

    $

    1

     

     

    $

    13

     

     

    (92

    )%

     

    $

    5

     

     

    (80

    )%

     

    General and administrative expense related to performance fees

     

     

     

     

     

     

     

     

     

    2

     

     

    NM

     

     

    Net performance fees

    $

    1

     

     

    $

    13

     

     

    (92

    )%

     

    $

    3

     

     

    (67

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    (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 2022

     

    3 Qtr 2021

     

    % Over/
    (Under)

     

    2 Qtr 2022

     

    % Over/
    (Under)

     

     

     

     

     

     

     

     

     

     

     

     

    Managed Assets Rollforward

     

     

     

     

     

     

     

     

     

     

    Global Retail Funds

     

     

     

     

     

     

     

     

     

     

    Beginning assets

    $

    322,938

     

     

    $

    359,476

     

     

    (10

    )%

     

    $

    379,985

     

     

    (15

    )%

     

    Inflows

     

    11,715

     

     

     

    16,442

     

     

    (29

    )%

     

     

    15,572

     

     

    (25

    )%

     

    Outflows

     

    (17,642

    )

     

     

    (15,509

    )

     

    (14

    )%

     

     

    (23,725

    )

     

    26

    %

     

    Net VP/VIT fund flows

     

    (999

    )

     

     

    (1,101

    )

     

    9

    %

     

     

    (1,043

    )

     

    4

    %

     

    Net new flows

     

    (6,926

    )

     

     

    (168

    )

     

    NM

     

     

     

    (9,196

    )

     

    25

    %

     

    Reinvested dividends

     

    1,647

     

     

     

    2,001

     

     

    (18

    )%

     

     

    3,403

     

     

    (52

    )%

     

    Net flows

     

    (5,279

    )

     

     

    1,833

     

     

    NM

     

     

     

    (5,793

    )

     

    9

    %

     

    Distributions

     

    (1,861

    )

     

     

    (2,151

    )

     

    13

    %

     

     

    (3,812

    )

     

    51

    %

     

    Market appreciation (depreciation) and other

     

    (15,281

    )

     

     

    (2,282

    )

     

    NM

     

     

     

    (43,104

    )

     

    65

    %

     

    Foreign currency translation (1)

     

    (4,314

    )

     

     

    (1,157

    )

     

    NM

     

     

     

    (4,338

    )

     

    1

    %

     

    Total ending assets

     

    296,203

     

     

     

    355,719

     

     

    (17

    )%

     

     

    322,938

     

     

    (8

    )%

     

    % of total retail assets sub-advised

     

    15.7

    %

     

     

    16.0

    %

     

     

     

     

    14.9

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Global Institutional

     

     

     

     

     

     

     

     

     

     

    Beginning assets

     

    275,212

     

     

     

    233,890

     

     

    18

    %

     

     

    318,622

     

     

    (14

    )%

     

    Inflows (2)

     

    14,932

     

     

     

    9,428

     

     

    58

    %

     

     

    16,108

     

     

    (7

    )%

     

    Outflows (2)

     

    (12,056

    )

     

     

    (7,356

    )

     

    (64

    )%

     

     

    (13,365

    )

     

    10

    %

     

    Net flows

     

    2,876

     

     

     

    2,072

     

     

    39

    %

     

     

    2,743

     

     

    5

    %

     

    Market appreciation (depreciation) and other (3)

     

    (17,785

    )

     

     

    (5,895

    )

     

    NM

     

     

     

    (36,473

    )

     

    51

    %

     

    Foreign currency translation (1)

     

    (10,013

    )

     

     

    (2,388

    )

     

    NM

     

     

     

    (9,680

    )

     

    (3

    )%

     

    Total ending assets

     

    250,290

     

     

     

    227,679

     

     

    10

    %

     

     

    275,212

     

     

    (9

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    Total managed assets

    $

    546,493

     

     

    $

    583,398

     

     

    (6

    )%

     

    $

    598,150

     

     

    (9

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    Total net flows

    $

    (2,403

    )

     

    $

    3,905

     

     

    NM

     

     

    $

    (3,050

    )

     

    21

    %

     

     

     

     

     

     

     

     

     

     

     

     

    Legacy insurance partners flows

    $

    (1,053

    )

     

    $

    (1,402

    )

     

    25

    %

     

    $

    (1,212

    )

     

    13

    %

     

     

     

     

     

     

     

     

     

     

     

     

    Total Assets Under Advisement (4)

    $

    22,313

     

     

    $

    19,742

     

     

    13

    %

     

    $

    26,481

     

     

    (16

    )%

     

    Model delivery AUA flows (5)

    $

    (542

    )

     

    $

    514

     

     

    NM

     

     

    $

    441

     

     

    NM

     

     

     

     

     

     

     

     

     

     

     

     

     

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

     

    (2) Global Institutional inflows and outflows include net flows from our RiverSource Structured Annuity product and Ameriprise Bank, FSB.

     

    (3) Included in Market appreciation (depreciation) and other for Global Institutional is the change in affiliated general account balance excluding net flows related to our Structured Annuity product and Ameriprise Bank, FSB

     

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

     

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

     

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

     
       
       

    Ameriprise Financial, Inc.

     

    Asset Management Segment Operating Metrics

     

    (in millions, unaudited)

    3 Qtr 2022

     

    3 Qtr 2021

     

    % Over/
    (Under)

     

    2 Qtr 2022

     

    % Over/
    (Under)

     

     

     

     

     

     

     

     

     

     

     

     

    Total Managed Assets by Type (1)

     

     

     

     

     

     

     

     

     

     

    Equity

    $

    278,446

     

    $

    332,715

     

    (16

    )%

     

    $

    306,044

     

    (9

    )%

     

    Fixed income

     

    194,643

     

     

    198,696

     

    (2

    )%

     

     

    216,445

     

    (10

    )%

     

    Money market

     

    21,261

     

     

    5,752

     

    NM

     

     

     

    19,334

     

    10

    %

     

    Alternative

     

    35,238

     

     

    23,389

     

    51

    %

     

     

    38,370

     

    (8

    )%

     

    Hybrid and other

     

    16,905

     

     

    22,846

     

    (26

    )%

     

     

    17,957

     

    (6

    )%

     

    Total managed assets by type

    $

    546,493

     

    $

    583,398

     

    (6

    )%

     

    $

    598,150

     

    (9

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    Average Managed Assets by Type (1) (2)

     

     

     

     

     

     

     

     

     

     

    Equity

    $

    305,078

     

    $

    340,804

     

    (10

    )%

     

    $

    336,754

     

    (9

    )%

     

    Fixed income

     

    214,305

     

     

    200,106

     

    7

    %

     

     

    235,580

     

    (9

    )%

     

    Money market

     

    18,499

     

     

    5,831

     

    NM

     

     

     

    16,489

     

    12

    %

     

    Alternative

     

    36,962

     

     

    23,360

     

    58

    %

     

     

    39,395

     

    (6

    )%

     

    Hybrid and other

     

    18,417

     

     

    23,172

     

    (21

    )%

     

     

    19,476

     

    (5

    )%

     

    Total average managed assets by type

    $

    593,261

     

    $

    593,273

     

     

     

    $

    647,694

     

    (8

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    (1) In Q4 2021, the definition of Alternative AUM was changed to now include real estate, CLOs, private equity, hedge funds (direct and funds of funds), infrastructure and commodities. Prior periods have been restated to reflect this change.

     

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

     

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

     
                         
     

    Ameriprise Financial, Inc.

    Asset Management Segment Performance Metrics

     

    3 Qtr 2022

     

     

     

     

     

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

    1 year

    3 year

    5 year

    10 year

    Equity

    61

    %

    83

    %

    74

    %

    87

    %

    Fixed Income

    38

    %

    71

    %

    62

    %

    86

    %

    Asset Allocation

    56

    %

    62

    %

    68

    %

    90

    %

     

     

     

     

     

    4- or 5-star Morningstar rated funds

    Overall

    3 year

    5 year

    10 year

    Number of Rated Funds

    130

     

    102

     

    91

     

    100

     

    Percent of Rated Assets

    56

    %

    51

    %

    47

    %

    60

    %

     

     

     

     

     

    Retail Fund performance rankings for each fund are measured on a consistent basis against the most appropriate peer group or index. Peer groupings of Columbia funds are defined by Lipper category and are based on the Primary Share Class (i.e., Institutional if available, otherwise Advisor or Instl3 share class), net of fees. Peer groupings of Threadneedle funds are defined by either IA or Morningstar index and are 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 09/30/22. Columbia funds are available for purchase by U.S. customers. Out of 104 Columbia funds rated (based on primary share class), 19 received a 5-star Overall Rating and 30 received a 4-star Overall Rating. Out of 155 Threadneedle funds rated (based on highest-rated share class), 24 received a 5-star Overall Rating and 57 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.

     

    © 2022 Morningstar. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

     

     

     

     

     

             
     

    Ameriprise Financial, Inc.

    Retirement & Protection Solutions Segment Adjusted Operating Results

    (in millions, unaudited)

     

    3 Qtr 2022

     

    3 Qtr 2021

     

    % Over/
    (Under)

     

    2 Qtr 2022

     

    % Over/
    (Under)

     

     

     

     

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

     

     

     

     

    Management and financial advice fees

     

    $

    189

     

    $

    239

     

    (21

    )%

     

    $

    197

     

    (4

    )%

    Distribution fees

     

     

    101

     

     

    125

     

    (19

    )%

     

     

    106

     

    (5

    )%

    Net investment income

     

     

    151

     

     

    114

     

    32

    %

     

     

    124

     

    22

    %

    Premiums, policy and contract charges

     

     

    342

     

     

    353

     

    (3

    )%

     

     

    329

     

    4

    %

    Other revenues

     

     

    3

     

     

    3

     

     

     

     

    4

     

    (25

    )%

    Total revenues

     

     

    786

     

     

    834

     

    (6

    )%

     

     

    760

     

    3

    %

    Banking and deposit interest expense

     

     

     

     

     

     

     

     

     

     

    Adjusted operating total net revenues

     

     

    786

     

     

    834

     

    (6

    )%

     

     

    760

     

    3

    %

     

     

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

     

     

     

     

    Distribution expenses

     

     

    103

     

     

    134

     

    23

    %

     

     

    115

     

    10

    %

    Interest credited to fixed accounts

     

     

    97

     

     

    99

     

    2

    %

     

     

    96

     

    (1

    )%

    Benefits, claims, losses and settlement expenses

     

     

    414

     

     

    323

     

    (28

    )%

     

     

    233

     

    (78

    )%

    Amortization of deferred acquisition costs

     

     

    49

     

     

    5

     

    NM

     

     

     

    54

     

    9

    %

    Interest and debt expense

     

     

    10

     

     

    9

     

    (11

    )%

     

     

    9

     

    (11

    )%

    General and administrative expense

     

     

    82

     

     

    77

     

    (6

    )%

     

     

    74

     

    (11

    )%

    Adjusted operating expenses

     

     

    755

     

     

    647

     

    (17

    )%

     

     

    581

     

    (30

    )%

    Pretax adjusted operating earnings

     

    $

    31

     

    $

    187

     

    (83

    )%

     

    $

    179

     

    (83

    )%

     

     

     

     

     

     

     

     

     

     

     

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

                         
     

    Ameriprise Financial, Inc.

    Retirement & Protection Solutions Segment Operating Metrics

    (in millions, unaudited)

    3 Qtr 2022

     

    3 Qtr 2021

    % Over/
    (Under)

    2 Qtr 2022

    % Over/
    (Under)

     

     

     

     

     

     

     

    Variable Annuities Rollforwards

     

     

     

     

     

     

    Beginning balance

    $

    75,687

     

     

    $

    90,494

     

    (16

    )%

    $

    85,759

     

    (12

    )%

    Deposit

     

    923

     

     

     

    1,421

     

    (35

    )%

     

    1,126

     

    (18

    )%

    Withdrawals and terminations

     

    (1,419

    )

     

     

    (1,900

    )

    25

    %

     

    (1,514

    )

    6

    %

    Net flows

     

    (496

    )

     

     

    (479

    )

    (4

    )%

     

    (388

    )

    (28

    )%

    Investment performance and interest credited

     

    (3,929

    )

     

     

    (380

    )

    NM

     

     

    (9,684

    )

    59

    %

    Total ending balance – contract accumulation values

    $

    71,262

     

     

    $

    89,635

     

    (20

    )%

    $

    75,687

     

    (6

    )%

     

     

     

     

     

     

     

    Variable annuities fixed sub-accounts

    $

    4,887

     

     

    $

    5,020

     

    (3

    )%

    $

    4,931

     

    (1

    )%

     

     

     

     

     

     

     

    Life Insurance In Force

    $

    198,510

     

     

    $

    197,523

     

     

    $

    198,546

     

     

     

     

     

     

     

     

     

    Net Amount at Risk (Life)

    $

    39,432

     

     

    $

    37,766

     

    4

    %

    $

    39,017

     

    1

    %

     

     

     

     

     

     

     

    Net Policyholder Reserves

     

     

     

     

     

     

    VUL/UL

    $

    12,718

     

     

    $

    14,565

     

    (13

    )%

    $

    13,140

     

    (3

    )%

    Term and whole life

     

    161

     

     

     

    168

     

    (4

    )%

     

    162

     

    (1

    )%

    Disability insurance

     

    469

     

     

     

    488

     

    (4

    )%

     

    476

     

    (1

    )%

    Other insurance

     

    573

     

     

     

    623

     

    (8

    )%

     

    584

     

    (2

    )%

    Total net policyholder reserves

    $

    13,921

     

     

    $

    15,844

     

    (12

    )%

    $

    14,362

     

    (3

    )%

     

     

     

     

     

     

     

    DAC Ending Balances

     

     

     

     

     

     

    Variable Annuities DAC

    $

    1,808

     

     

    $

    1,840

     

    (2

    )%

    $

    1,864

     

    (3

    )%

    Life and Health DAC

    $

    1,137

     

     

    $

    834

     

    36

    %

    $

    1,055

     

    8

    %

     

     

     

     

     

     

     

    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 2022

     

    3 Qtr 2021

    % Over/
    (Under)

    2 Qtr 2022

    % 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

     

    (11

    )

     

     

    (17

    )

    35

    %

     

    (6

    )

    (83

    )%

    Premiums, policy and contract charges

     

     

     

     

     

     

     

     

     

    Other revenues

     

    2

     

     

     

    1

     

    NM

     

     

    (1

    )

    NM

     

    Total revenues

     

    (9

    )

     

     

    (16

    )

    44

    %

     

    (7

    )

    (29

    )%

    Banking and deposit interest expense

     

    2

     

     

     

     

     

     

     

     

    Adjusted operating total net revenues

     

    (11

    )

     

     

    (16

    )

    31

    %

     

    (7

    )

    (57

    )%

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

     

     

     

     

     

     

     

     

     

    Interest credited to fixed accounts

     

     

     

     

     

     

     

     

     

    Benefits, claims, losses and settlement expenses

     

     

     

     

     

     

     

     

     

    Amortization of deferred acquisition costs

     

     

     

     

     

     

     

     

     

    Interest and debt expense

     

    14

     

     

     

    13

     

    (8

    )%

     

    13

     

    (8

    )%

    General and administrative expense

     

    48

     

     

     

    44

     

    (9

    )%

     

    28

     

    (71

    )%

    Adjusted operating expenses

     

    62

     

     

     

    57

     

    (9

    )%

     

    41

     

    (51

    )%

    Pretax adjusted operating earnings (loss)

    $

    (73

    )

     

    $

    (73

    )

     

    $

    (48

    )

    (52

    )%

     

     

     

     

     

     

     

    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 2022

     

    3 Qtr 2021

     

    % Over/
    (Under)

     

    2 Qtr 2022

     

    % Over/
    (Under)

     

     

     

     

     

     

     

     

     

     

    Long Term Care Adjusted Operating Income Statements

     

     

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

     

     

     

    Management and financial advice fees

    $

     

     

    $

     

     

     

     

    $

     

     

     

    Distribution fees

     

     

     

     

     

     

     

     

     

     

     

     

    Net investment income

     

    38

     

     

     

    36

     

     

    6

    %

     

     

    37

     

     

    3

    %

    Premiums, policy and contract charges

     

    25

     

     

     

    26

     

     

    (4

    )%

     

     

    24

     

     

    4

    %

    Other revenues

     

     

     

     

     

     

     

     

     

     

     

     

    Total revenues

     

    63

     

     

     

    62

     

     

    2

    %

     

     

    61

     

     

    3

    %

    Banking and deposit interest expense

     

     

     

     

     

     

     

     

     

     

     

     

    Adjusted operating total net revenues

     

    63

     

     

     

    62

     

     

    2

    %

     

     

    61

     

     

    3

    %

     

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

     

     

     

    Distribution expenses

     

    (3

    )

     

     

    (3

    )

     

     

     

     

    (4

    )

     

    (25

    )%

    Interest credited to fixed accounts

     

     

     

     

     

     

     

     

     

     

     

     

    Benefits, claims, losses and settlement expenses

     

    62

     

     

     

    58

     

     

    (7

    )%

     

     

    57

     

     

    (9

    )%

    Amortization of deferred acquisition costs

     

     

     

     

     

     

     

     

     

     

     

     

    Interest and debt expense

     

    3

     

     

     

    3

     

     

     

     

     

    2

     

     

    (50

    )%

    General and administrative expense

     

    4

     

     

     

    5

     

     

    20

    %

     

     

    7

     

     

    43

    %

    Adjusted operating expenses

     

    66

     

     

     

    63

     

     

    (5

    )%

     

     

    62

     

     

    (6

    )%

    Pretax adjusted operating earnings (loss)

    $

    (3

    )

     

    $

    (1

    )

     

    NM

     

     

    $

    (1

    )

     

    NM

     

     

     

     

     

     

     

     

     

     

     

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

     

     

     

     

     

     

     

     

     

    Active Life Reserves

    $

    1,949

     

     

    $

    2,501

     

     

    (22

    )%

     

    $

    2,122

     

     

    (8

    )%

    Disabled Life Reserves

     

    606

     

     

     

    558

     

     

    9

    %

     

     

    593

     

     

    2

    %

    Total long term care policyholder reserves, net of reinsurance

    $

    2,555

     

     

    $

    3,059

     

     

    (16

    )%

     

    $

    2,715

     

     

    (6

    )%

     

     

     

     

     

     

     

     

     

     

    (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 2022

    3 Qtr 2021

    % Over/
    (Under)

    2 Qtr 2022

    % Over/
    (Under)

     

     

     

     

     

     

     

     

     

    Fixed Annuities Adjusted Operating Income Statements

     

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

     

     

    Management and financial advice fees

    $

     

     

    $

     

     

     

    $

     

     

     

    Distribution fees

     

     

     

     

     

     

     

     

     

     

     

    Net investment income

     

    8

     

     

     

    12

     

     

    (33

    )%

     

    8

     

     

     

    Premiums, policy and contract charges

     

     

     

     

     

     

     

     

     

     

     

    Other revenues

     

    55

     

     

     

    55

     

     

     

     

    57

     

     

    (4

    )%

    Total revenues

     

    63

     

     

     

    67

     

     

    (6

    )%

     

    65

     

     

    (3

    )%

    Banking and deposit interest expense

     

     

     

     

     

     

     

     

     

     

     

    Adjusted operating total net revenues

     

    63

     

     

     

    67

     

     

    (6

    )%

     

    65

     

     

    (3

    )%

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

     

     

    Distribution expenses

     

    1

     

     

     

    1

     

     

     

     

    1

     

     

     

    Interest credited to fixed accounts

     

    61

     

     

     

    64

     

     

    5

    %

     

    60

     

     

    (2

    )%

    Benefits, claims, losses and settlement expenses

     

    2

     

     

     

    1

     

     

    NM

     

     

    2

     

     

     

    Amortization of deferred acquisition costs

     

    (2

    )

     

     

    1

     

     

    NM

     

     

     

     

     

    Interest and debt expense

     

     

     

     

     

     

     

     

     

     

     

    General and administrative expense

     

    4

     

     

     

    7

     

     

    43

    %

     

    6

     

     

    33

    %

    Adjusted operating expenses

     

    66

     

     

     

    74

     

     

    11

    %

     

    69

     

     

    4

    %

    Pretax adjusted operating earnings (loss)

    $

    (3

    )

     

    $

    (7

    )

     

    57

    %

    $

    (4

    )

     

    25

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

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

     
     

    Ameriprise Financial, Inc.

    Eliminations (1) Adjusted Operating Results

    (in millions, unaudited)

    3 Qtr 2022

     

    3 Qtr 2021

    % Over/
    (Under)

    2 Qtr 2022

    % Over/
    (Under)

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

    (35

    )

     

    $

    (38

    )

    8

    %

    $

    (36

    )

    3

    %

    Distribution fees

     

    (270

    )

     

     

    (348

    )

    22

    %

     

    (290

    )

    7

    %

    Net investment income

     

    (5

    )

     

     

    (1

    )

    NM

     

     

    (3

    )

    (67

    )%

    Premiums, policy and contract charges

     

    (8

    )

     

     

    (8

    )

     

     

    (8

    )

     

    Other revenues

     

     

     

     

     

     

     

     

     

    Total revenues

     

    (318

    )

     

     

    (395

    )

    19

    %

     

    (337

    )

    6

    %

    Banking and deposit interest expense

     

    (2

    )

     

     

     

     

     

     

     

    Adjusted operating total net revenues

     

    (316

    )

     

     

    (395

    )

    20

    %

     

    (337

    )

    6

    %

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

     

    (293

    )

     

     

    (373

    )

    (21

    )%

     

    (313

    )

    (6

    )%

    Interest credited to fixed accounts

     

     

     

     

     

     

     

     

     

    Benefits, claims, losses and settlement expenses

     

    (5

    )

     

     

    (6

    )

    (17

    )%

     

    (5

    )

     

    Amortization of deferred acquisition costs

     

     

     

     

     

     

     

     

     

    Interest and debt expense

     

    (3

    )

     

     

    (3

    )

     

     

    (3

    )

     

    General and administrative expense

     

    (15

    )

     

     

    (13

    )

    15

    %

     

    (16

    )

    (6

    )%

    Adjusted operating expenses

     

    (316

    )

     

     

    (395

    )

    (20

    )%

     

    (337

    )

    (6

    )%

    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,
    2022

     

    September 30,
    2021

     

    June 30,
    2022

     

     

     

     

     

     

     

    Long-term Debt Summary

     

     

     

     

     

     

    Senior notes

     

    $

    2,800

     

     

    $

    2,800

     

     

    $

    2,800

     

    Finance lease liabilities

     

     

    33

     

     

     

    41

     

     

     

    35

     

    Other (1)

     

     

    (11

    )

     

     

    (10

    )

     

     

    (11

    )

    Total Ameriprise Financial long-term debt

     

     

    2,822

     

     

     

    2,831

     

     

     

    2,824

     

    Non-recourse debt of consolidated investment entities

     

     

    2,401

     

     

     

    2,163

     

     

     

    2,078

     

    Total long-term debt

     

    $

    5,223

     

     

    $

    4,994

     

     

    $

    4,902

     

     

     

     

     

     

     

     

    Total Ameriprise Financial long-term debt

     

    $

    2,822

     

     

    $

    2,831

     

     

    $

    2,824

     

    Finance lease liabilities

     

     

    (33

    )

     

     

    (41

    )

     

     

    (35

    )

    Other (1)

     

     

    11

     

     

     

    10

     

     

     

    11

     

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

     

    $

    2,800

     

     

    $

    2,800

     

     

    $

    2,800

     

     

     

     

     

     

     

     

    Total equity (2)

     

    $

    3,257

     

     

    $

    5,707

     

     

    $

    4,304

     

    Equity of consolidated investment entities

     

     

    (6

    )

     

     

    (5

    )

     

     

    (6

    )

    Total equity excluding CIEs

     

    $

    3,251

     

     

    $

    5,702

     

     

    $

    4,298

     

     

     

     

     

     

     

     

    Total Ameriprise Financial capital

     

    $

    6,079

     

     

    $

    8,538

     

     

    $

    7,128

     

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

     

    $

    6,051

     

     

    $

    8,502

     

     

    $

    7,098

     

     

     

     

     

     

     

     

    Debt to capital

     

     

     

     

     

     

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

     

     

    46.4

    %

     

     

    33.2

    %

     

     

    39.6

    %

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

     

     

    46.3

    %

     

     

    32.9

    %

     

     

    39.4

    %

     

     

     

     

     

     

     

    (1) Includes adjustments for net unamortized discounts, debt issuance costs and other lease obligations.

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

     
     

    Ameriprise Financial, Inc.

    Consolidated Balance Sheets

    (in millions, unaudited)

    September 30,
    2022

     

    December 31,
    2021

     

     

     

     

     

     

    Assets

     

     

     

     

    Cash and cash equivalents

    $

    7,819

     

     

    $

    7,127

     

     

    Cash of consolidated investment entities

     

    174

     

     

     

    121

     

     

    Investments

     

    40,072

     

     

     

    35,810

     

     

    Investments of consolidated investment entities

     

    2,378

     

     

     

    2,184

     

     

    Separate account assets

     

    71,722

     

     

     

    97,491

     

     

    Receivables

     

    16,008

     

     

     

    16,205

     

     

    Receivables of consolidated investment entities

     

    38

     

     

     

    17

     

     

    Deferred acquisition costs

     

    2,998

     

     

     

    2,782

     

     

    Restricted and segregated cash and investments

     

    2,343

     

     

     

    2,795

     

     

    Other assets

     

    9,800

     

     

     

    11,444

     

     

    Other assets of consolidated investment entities

     

    2

     

     

     

    3

     

     

    Total Assets

    $

    153,354

     

     

    $

    175,979

     

     

     

     

     

     

     

    Liabilities

     

     

     

     

    Policyholder account balances, future policy benefits and claims

    $

    35,482

     

     

    $

    35,750

     

     

    Separate account liabilities

     

    71,722

     

     

     

    97,491

     

     

    Customer deposits

     

    28,137

     

     

     

    20,227

     

     

    Short-term borrowings

     

    201

     

     

     

    200

     

     

    Long-term debt

     

    2,822

     

     

     

    2,832

     

     

    Debt of consolidated investment entities

     

    2,401

     

     

     

    2,164

     

     

    Accounts payable and accrued expenses

     

    2,058

     

     

     

    2,527

     

     

    Other liabilities

     

    7,113

     

     

     

    8,966

     

     

    Other liabilities of consolidated investment entities

     

    161

     

     

     

    137

     

     

    Total Liabilities

     

    150,097

     

     

     

    170,294

     

     

     

     

     

     

     

    Equity

     

     

     

     

    Ameriprise Financial

     

     

     

     

    Common shares ($.01 par)

     

    3

     

     

     

    3

     

     

    Additional paid-in capital

     

    9,434

     

     

     

    9,220

     

     

    Retained earnings

     

    19,174

     

     

     

    17,525

     

     

    Treasury stock

     

    (22,560

    )

     

     

    (21,066

    )

     

    Accumulated other comprehensive income, net of tax

     

    (2,794

    )

     

     

    3

     

     

    Total Equity

     

    3,257

     

     

     

    5,685

     

     

    Total Liabilities and Equity

    $

    153,354

     

     

    $

    175,979

     

     

     

     

     

     

     

             
       

    Ameriprise Financial, Inc.

     

    Disclosed Items – Included in Adjusted Operating Earnings

     

    (in millions, unaudited)

     

    3 Qtr 2022

     

     

     

     

     

     

     

     

     

    RPS

     

    Corporate

     

     

     

    Valuation
    Assumption &
    Model Changes (1)

     

    Valuation
    Assumption &
    Model Changes (1)

     

    Revenues

     

     

     

     

     

    Management and financial advice fees

     

    $

     

     

    $

     

     

    Distribution fees

     

     

     

     

     

     

     

    Net investment income

     

     

     

     

     

     

     

    Premiums, policy and contract charges

     

     

    3

     

     

     

    (2

    )

     

    Other revenues

     

     

     

     

     

     

     

    Total revenues

     

     

    3

     

     

     

    (2

    )

     

    Banking and deposit interest expense

     

     

     

     

     

     

     

    Adjusted operating total net revenues

     

     

    3

     

     

     

    (2

    )

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

    Distribution expenses

     

     

     

     

     

     

     

    Interest credited to fixed accounts

     

     

     

     

     

     

     

    Benefits, claims, losses and settlement expenses

     

     

    180

     

     

     

    (1

    )

     

    Amortization of deferred acquisition costs

     

     

    (5

    )

     

     

    (4

    )

     

    Interest and debt expense

     

     

     

     

     

     

     

    General and administrative expense

     

     

     

     

     

     

     

    Adjusted operating expenses

     

     

    175

     

     

     

    (5

    )

     

    Pretax adjusted operating earnings (loss)

     

    $

    (172

    )

     

    $

    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)

    2022

     

    2021

     

    2022

     

    2021

     

    Net income

    $

    548

     

     

    $

    1,031

     

     

    $

    4.86

     

     

    $

    8.65

     

     

    (44

    )%

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

     

    (92

    )

     

     

    12

     

     

     

    (0.82

    )

     

     

    0.10

     

     

     

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

     

    (132

    )

     

     

    94

     

     

     

    (1.18

    )

     

     

    0.79

     

     

     

    Add: Mean reversion-related impacts (1)

     

    79

     

     

     

    (9

    )

     

     

    0.70

     

     

     

    (0.08

    )

     

     

    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)

     

    11

     

     

     

    7

     

     

     

    0.10

     

     

     

    0.06

     

     

     

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

     

    (3

    )

     

     

    2

     

     

     

    (0.03

    )

     

     

    0.02

     

     

     

    Add: Tax effect of adjustments (2)

     

    (10

    )

     

     

    88

     

     

     

    (0.09

    )

     

     

    0.74

     

     

     

    Adjusted operating earnings

    $

    591

     

     

    $

    699

     

     

    $

    5.24

     

     

    $

    5.86

     

     

    (11

    )%

    Less: Pretax impact of annual unlocking/loss recognition

     

    (169

    )

     

     

    (8

    )

     

     

    (1.50

    )

     

     

    (0.07

    )

     

     

    Less: Tax effect of annual unlocking/loss recognition

     

    35

     

     

     

    2

     

     

     

    0.31

     

     

     

    0.02

     

     

     

    Adjusted operating earnings excluding Unlocking

    $

    725

     

     

    $

    705

     

     

    $

    6.43

     

     

    $

    5.91

     

     

    9

    %

     

     

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding:

     

     

     

     

     

     

     

     

     

    Basic

     

    110.5

     

     

     

    116.4

     

     

     

     

     

     

     

    Diluted

     

    112.7

     

     

     

    119.2

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (1) Pretax adjusted operating adjustment.

     

     

     

     

     

     

     

     

     

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

     
     

    Ameriprise Financial, Inc.

    Reconciliation Table: Earnings

     

    Year-to-date
    September 30,

     

    Per Diluted Share
    Year-to-date
    September 30,

     

    % Over/
    (Under)

    (in millions, except per share amounts, unaudited)

    2022

     

    2021

     

    2022

     

    2021

     

    Net income

    $

    2,065

     

     

    $

    2,059

     

     

    $

    18.05

     

     

    $

    17.03

     

     

    6

    %

    Add: Basic to diluted share conversion

     

     

     

     

     

     

     

     

     

     

     

     

     

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

     

    (90

    )

     

     

    78

     

     

     

    (0.79

    )

     

     

    0.65

     

     

     

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

     

    (571

    )

     

     

    577

     

     

     

    (5.00

    )

     

     

    4.78

     

     

     

    Add: Mean reversion-related impacts (1)

     

    299

     

     

     

    (107

    )

     

     

    2.61

     

     

     

    (0.89

    )

     

     

    Add: Market impact of hedges on investments (1)

     

     

     

     

    40

     

     

     

     

     

     

    0.33

     

     

     

    Less: Block transfer reinsurance transaction impacts (1)

     

     

     

     

    521

     

     

     

     

     

     

    4.31

     

     

     

    Add: Integration/restructuring charges (1)

     

    35

     

     

     

    14

     

     

     

    0.31

     

     

     

    0.12

     

     

     

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

     

    (2

    )

     

     

    (1

    )

     

     

    (0.02

    )

     

     

    (0.01

    )

     

     

    Add: Tax effect of adjustments (2)

     

    31

     

     

     

    16

     

     

     

    0.27

     

     

     

    0.13

     

     

     

    Adjusted operating earnings

    $

    1,951

     

     

    $

    2,001

     

     

    $

    17.05

     

     

    $

    16.55

     

     

    3

    %

    Less: Pretax impact of annual unlocking/loss recognition

     

    (169

    )

     

     

    (8

    )

     

     

    (1.49

    )

     

     

    (0.07

    )

     

     

    Less: Tax effect of annual unlocking/loss recognition

     

    35

     

     

     

    2

     

     

     

    0.31

     

     

     

    0.02

     

     

     

    Adjusted operating earnings excluding Unlocking

    $

    2,085

     

     

    $

    2,007

     

     

    $

    18.23

     

     

    $

    16.60

     

     

    10

    %

     

     

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding:

     

     

     

     

     

     

     

     

     

    Basic

     

    112.1

     

     

     

    118.2

     

     

     

     

     

     

     

    Diluted

     

    114.4

     

     

     

    120.9

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (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)

     

    2022

     

    2021

    Total net revenues

     

    $

    3,491

     

     

    $

    2,903

     

    Less: Net realized investment gains (losses)

     

     

    (100

    )

     

     

    14

     

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

     

     

    15

     

     

     

    (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

     

     

    31

     

     

     

    42

     

    Adjusted operating total net revenues

     

    $

    3,545

     

     

    $

    3,515

     

    Less: Annual unlocking/loss recognition

     

     

    1

     

     

     

    19

     

    Adjusted operating total net revenues excluding Unlocking

     

    $

    3,544

     

     

    $

    3,496

     

     

     

     

     

     

    Total expenses

     

    $

    2,806

     

     

    $

    1,633

     

    Less: CIEs expenses

     

     

    34

     

     

     

    40

     

    Less: Integration/restructuring charges

     

     

    11

     

     

     

    7

     

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

     

     

    (117

    )

     

     

    93

     

    Less: Mean reversion-related impacts

     

     

    79

     

     

     

    (9

    )

    Less: Block transfer reinsurance transaction impacts

     

     

     

     

     

    (1,165

    )

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

     

     

    (8

    )

     

     

    2

     

    Adjusted operating expenses

     

    $

    2,807

     

     

    $

    2,665

     

    Less: Annual unlocking/loss recognition

     

     

    170

     

     

     

    27

     

    Adjusted operating total net expenses excluding Unlocking

     

    $

    2,637

     

     

    $

    2,638

     

     

     

     

     

     

    Pretax income

     

    $

    685

     

     

    $

    1,270

     

    Pretax adjusted operating earnings

     

    $

    738

     

     

    $

    850

     

    Pretax adjusted operating earnings excluding Unlocking

     

    $

    907

     

     

    $

    858

     

     

     

     

     

     

    Pretax income margin

     

     

    19.6

    %

     

     

    43.7

    %

    Pretax adjusted operating margin

     

     

    20.8

    %

     

     

    24.2

    %

    Pretax adjusted operating margin excluding Unlocking

     

     

    25.6

    %

     

     

    24.5

    %

     

     

     

     

     

             
     

    Ameriprise Financial, Inc.

    Reconciliation Table: Effective Tax Rate

     

    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

    %

     

     

     

     

     

             
     

    Ameriprise Financial, Inc.

    Reconciliation Table: Effective Tax Rate

     

    Quarter Ended September 30, 2022

     

    (in millions, unaudited)

    GAAP

     

    Adjusted
    Operating

    Pretax income

    $

    685

     

    $

    738

     

    Income tax provision

    $

    137

     

    $

    147

     

     

     

     

     

     

    Effective tax rate

     

    20.0

    %

     

    19.9

    %

     

     

     

     

     

             
     

    Ameriprise Financial, Inc.

    Reconciliation Table: Effective Tax Rate

     

    Year-to-date
    September 30, 2022

     

    (in millions, unaudited)

    GAAP

     

    Adjusted
    Operating

    Pretax income

    $

    2,563

     

    $

    2,418

     

    Income tax provision

    $

    498

     

    $

    467

     

     

     

     

     

     

    Effective tax rate

     

    19.4

    %

     

    19.3

    %

     

     

     

     

     

             
     

    Ameriprise Financial, Inc.

    Reconciliation Table: Advice & Wealth Management General and Administrative Expense

     

    Year-to-date
    September 30,

     

    % Over/
    (under)

    (in millions, unaudited)

    2022

     

    2021

     

     

     

     

     

     

     

    Total G&A expenses

    $

    1,134

     

    $

    1,061

     

    7

    %

     

     

     

     

     

     

               
     

    Ameriprise Financial, Inc.

    Reconciliation Table: Asset Management Operating Expense

     

    Quarter Ended September 30,

     

    % Over/
    (under)

    (in millions, unaudited)

    2022

     

    2021

     

     

     

     

     

     

     

    Total operating expenses

    $

    632

     

    $

    630

     

    %

    BMO operating expenses

     

    81

     

     

     

     

    Total operating expenses excluding BMO

    $

    551

     

    $

    630

     

    (13

    )%

     

     

     

     

     

     

    Total G&A expenses

    $

    391

     

    $

    338

     

    16

    %

    BMO G&A expenses

     

    75

     

     

     

     

    Total G&A expenses excluding BMO

    $

    316

     

    $

    338

     

    (7

    )%

     

     

     

     

     

     

               
       

    Ameriprise Financial, Inc.

     

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

     

     

     

    Twelve Months Ended
    September 30,

     

    (in millions, unaudited)

     

    2022

     

    2021

     

    Net income

     

    $

    2,766

     

     

    $

    2,236

     

     

    Less: Adjustments (1)

     

     

    92

     

     

     

    (324

    )

     

    Adjusted operating earnings

     

     

    2,674

     

     

     

    2,560

     

     

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

     

     

    (134

    )

     

     

    (6

    )

     

    Adjusted operating earnings excluding Unlocking

     

    $

    2,808

     

     

    $

    2,566

     

     

     

     

     

     

     

     

    Total Ameriprise Financial, Inc. shareholders’ equity

     

    $

    4,793

     

     

    $

    5,766

     

     

    Less: Accumulated other comprehensive income, net of tax

     

     

    (1,076

    )

     

     

    404

     

     

    Total Ameriprise Financial, Inc. shareholders’ equity excluding AOCI

     

     

    5,869

     

     

     

    5,362

     

     

    Less: Equity impacts attributable to the consolidated investment entities

     

     

    1

     

     

     

    3

     

     

    Adjusted operating equity

     

    $

    5,868

     

     

    $

    5,359

     

     

     

     

     

     

     

     

    Return on equity excluding AOCI

     

     

    47.1

    %

     

     

    41.7

    %

     

    Adjusted operating return on equity excluding AOCI (3)

     

     

    45.6

    %

     

     

    47.8

    %

     

    Adjusted operating return on equity excluding AOCI and Unlocking (3)

     

     

    47.9

    %

     

     

    47.9

    %

     

     

     

     

     

     

     

    (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 BusinessWire on October 25, 2022 by Ameriprise Financial, Inc..

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