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  • Ameriprise Financial Reports Fourth Quarter 2022 Results

    January 31, 2023 by Ameriprise Financial, Inc.

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

     

    Earnings Per Diluted Share

     

    Return on Equity, ex AOCI (1)

     
     

     

    Q4 2022

    FY 2022

     

     

    2022

     
     

    GAAP

    $4.43

    $22.51

     

    GAAP

    43.1%

     
     

    Adjusted Operating

    $6.94

    $23.96

     

    Adjusted Operating

    45.9%

     
     

    Adjusted Operating, Ex. Unlocking (2)

    $6.94

    $25.14

     

    Adjusted Operating, Ex. Unlocking (2)

    48.1%

     
    • Fourth quarter adjusted operating earnings per diluted share was $6.94, up 13 percent from the prior year period driven by strong business performance and capital return to shareholders. Full year adjusted operating earnings per diluted share excluding unlocking increased 11 percent to $25.14.

     

    Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer

     

    “Ameriprise delivered excellent results in the quarter with operating EPS up 13 percent, capping off a strong year, with full year operating EPS(4) up 11 percent, reaching a new high of $25.14.

     

    “We achieved record results in 2022 that demonstrate the strength, diversification and capabilities of our business. Wealth Management client flows for the year hit a new high reflecting our proven, advice-based client experience and broad suite of solutions. In addition, we are seeing strong growth across our cash offerings including at the bank – a significant benefit in this rising interest rate environment.

     

    “Our Retirement and Protection Solutions business also benefited from increased spread revenue and had a good quarter. And while our Asset Management business was impacted by the industry-wide pressure from lower markets and volatility, we remained focused on executing our strategic priorities, including the integration of the BMO EMEA business.

     

    “Capital management is a differentiator for Ameriprise. As we grow, we consistently generate significant free cash flow across our business that we reinvest in the business and return to shareholders. In 2022, we returned approximately 85 percent of earnings to shareholders, including devoting $1.9 billion to share repurchases and a double digit increase in our dividend.

     

    “Ameriprise is well-positioned to build on our momentum in 2023.”

     

     

    • Fourth quarter GAAP net income per diluted share was $4.43 compared to $5.96 a year ago, primarily reflecting market impacts on the valuation of derivatives. Full year GAAP net income per diluted share decreased 2 percent to $22.51.

     

    • Pretax adjusted operating earnings reached a new high of $973 million, up 9 percent, from excellent growth in the Wealth Management business. The Advice and Wealth Management margin reached a new record high of 30 percent.

     

    • Adjusted operating net revenues of $3.6 billion declined only 2 percent in the quarter, as excellent growth in Wealth Management largely offset a reduction in Asset Management fees from market depreciation.

     

    • Advice & Wealth Management total client flows were $12.4 billion in the quarter, reaching a record high of $42.5 billion for the year, and Ameriprise Bank and Certificate Company assets grew to $29 billion.

     

    • Investment performance at Columbia Threadneedle Investments remained strong in a volatile market environment with 131 funds with 4- and 5-star Morningstar ratings.

     

    • The company returned $610 million of capital to shareholders in the quarter and $2.4 billion for the full year driven by strong balance sheet fundamentals and significant free cash flow generation.

     

    • For the fourth consecutive year, Ameriprise was recognized by J.D. Power for providing “an outstanding customer service experience” for phone support for advisors.(3)

     

    (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.

    (3) J.D. Power 2022 Certified Customer Service ProgramSM recognition is based on successful completion of an evaluation and exceeding a customer satisfaction benchmark through a survey of recent servicing interactions. For more information, visit http://www.jdpower.com/ccc.

    (4) Excluding unlocking.

    Ameriprise Financial, Inc.

    Fourth Quarter Summary

     

    Quarter Ended
    December 31,

    % Over/

    (Under)

     

    Year-to-date
    December 31,

    % Over/

    (Under)

    (in millions, except per share amounts, unaudited)

    2022

     

    2021

     

     

    2022

     

    2021

     

    GAAP net income

    $

    494

     

    $

    701

     

    (30)%

     

    $

    2,559

     

    $

    2,760

     

    (7)%

    Adjusted operating earnings

    $

    773

     

    $

    723

     

    7%

     

    $

    2,724

     

    $

    2,724

     

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

    $

    773

     

    $

    723

     

    7%

     

    $

    2,858

     

    $

    2,730

     

    5%

     

     

     

     

     

     

     

     

     

     

     

     

    GAAP net income per diluted share

    $

    4.43

     

    $

    5.96

     

    (26)%

     

    $

    22.51

     

    $

    23.00

     

    (2)%

    Adjusted operating earnings per diluted share

    $

    6.94

     

    $

    6.15

     

    13%

     

    $

    23.96

     

    $

    22.70

     

    6%

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

    $

    6.94

     

    $

    6.15

     

    13%

     

    $

    25.14

     

    $

    22.75

     

    11%

     

     

     

     

     

     

     

     

     

     

     

     

    GAAP Return on Equity, ex. AOCI

     

    43.1

    %

     

    51.2

    %

     

     

     

    43.1

    %

     

    51.2

    %

     

    Adjusted Operating Return on Equity, ex. AOCI

     

    45.9

    %

     

    50.6

    %

     

     

     

    45.9

    %

     

    50.6

    %

     

    Adjusted Operating Return on Equity, ex. AOCI and unlocking

     

    48.1

    %

     

    50.7

    %

     

     

     

    48.1

    %

     

    50.7

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding:

     

     

     

     

     

     

     

     

     

     

     

    Basic

     

    108.9

     

     

    114.6

     

     

     

     

    111.3

     

     

    117.3

     

     

    Diluted

     

    111.4

     

     

    117.6

     

     

     

     

    113.7

     

     

    120.0

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Current quarter GAAP results after tax were impacted by the valuation of derivatives and included $12 million of integration costs from the acquisition of BMO EMEA. GAAP results in the prior year quarter were modestly impacted by the market changes that negatively affected credit spreads and the valuation of derivatives.

    Ameriprise Financial, Inc.

    Advice & Wealth Management Segment Adjusted Operating Results

     

    Quarter Ended December 31,

     

    % Over/

    (Under)

    (in millions, unaudited)

    2022

    2021

     

    Adjusted operating net revenues

    $

    2,226

     

    $

    2,114

     

     

    5%

     

     

     

     

     

     

     

    Distribution expenses

     

    1,153

     

     

    1,275

     

     

    10%

    G&A / other expense

     

    408

     

     

    367

     

     

    (11)%

    Adjusted operating expenses

     

    1,561

     

     

    1,642

     

     

    5%

    Pretax adjusted operating earnings

    $

    665

     

    $

    472

     

     

    41%

     

     

     

     

     

     

     

    Pretax adjusted operating margin

     

    29.9

    %

     

    22.3

    %

     

    760 bps

     

     

     

     

     

     

     

     

     

    Quarter Ended December 31,

     

    % Over/

    (Under)

    (in billions, unless otherwise noted)

    2022

     

    2021

     

    Total client assets

    $

    758

     

    $

    858

     

    (12)%

    Total client net flows (1)

    $

    12.4

     

    $

    12.5

     

    (1)%

    Wrap net flows (1)

    $

    6.2

     

    $

    10.5

     

    (41)%

    AWM cash balances

    $

    47.2

     

    $

    43.8

     

    8%

    Average gross yield on cash balances (in bps)

     

    373

     

     

    62

     

    311 bps

    Adjusted operating net revenue per advisor (TTM in thousands)

    $

    827

     

    $

    796

     

    4%

     

     

     

     

     

     

    (1) See definition on page 12.

    Advice & Wealth Management pretax adjusted operating earnings increased 41 percent to $665 million, and the pretax adjusted operating margin reached a new record of 30 percent. This strong performance was a result of continued significant organic growth with flows into advisory and brokerage accounts. The strategy to expand Ameriprise Bank and Certificate Company drove 59 percent asset growth for these businesses. The advisor base continues to build with excellent advisor retention, strong recruiting and increased productivity.

    Net revenues increased 5 percent as client inflows, higher investment income from bank growth and rising interest rates more than offset lower fees related to market depreciation and lower client activity, consistent with industry trends.

    Adjusted operating expenses declined 5 percent to $1.6 billion compared to a year ago. Distribution expenses declined 10 percent primarily from lower markets. G&A and other expenses were $408 million, reflecting investments for business growth, including the bank, as well as higher volume-related activity from client inflows. Prior year G&A expenses included unusually low staffing levels and limited travel and entertainment expense. The company continues to manage expenses prudently.

    Wealth Management delivered robust organic growth. Clients and advisors remained engaged and focused on positioning portfolios to meet financial planning goals in the face of a challenging market environment.

    • Total client net flows were strong at $12.4 billion, evenly split between flows into advisory and non-advisory accounts, a mix shift that was consistent with the current market environment. For the full year, total client flows hit a new high of $42.5 billion.
    • Total AWM cash balances increased 8 percent to $47.2 billion and 2 percent on a sequential basis. These cash balances provide important flexibility to drive sustainable financial benefits.
    • Adjusted operating net revenue per advisor on a trailing 12-month basis was up 4 percent to $827,000, reflecting the impact of the market environment.
    • Total advisors increased 2 percent to 10,269 with excellent advisor retention and the addition of 72 experienced advisors in the quarter.

    Ameriprise Financial, Inc.

    Asset Management Segment Adjusted Operating Results

     

    Quarter Ended December 31,

    % Over/

    (Under)

    (in millions, unaudited)

    2022

    2021

    Adjusted operating net revenues

    $

    785

     

     

    $

    1,060

     

     

    (26)%

     

     

     

     

     

     

    Distribution expenses

     

    228

     

     

     

    294

     

     

    22%

    G&A / other expenses

     

    411

     

     

     

    436

     

     

    6%

    Adjusted operating expenses

     

    639

     

     

     

    730

     

     

    12%

    Pretax adjusted operating earnings

    $

    146

     

     

    $

    330

     

     

    (56)%

     

     

     

     

     

     

    Net pretax adjusted operating margin (1)

     

    28.6

     

    %

     

    45.7

     

    %

    (1,710) bps

     

     

     

     

     

     

     

     

     

     

     

     

     

    Quarter Ended December 31,

    % Over/

    (Under)

    (in billions)

    2022

    2021

    Total segment AUM

    $

    584

     

     

    $

    754

     

     

    (23)%

     

     

     

     

     

     

    Net Flows

     

     

     

     

     

    Global Retail net flows

    $

    (3.7

    )

     

    $

    13.8

     

     

    NM

    Global Institutional net flows, ex. legacy insurance partners flows

     

    5.0

     

     

     

    14.6

     

     

    (78)%

    Legacy insurance partners flows

     

    (1.7

    )

     

     

    (0.9

    )

     

    (81)%

    Total segment net flows

    $

    (0.4

    )

     

    $

    27.5

     

     

    NM

     

     

     

     

     

     

    Model delivery AUA Flows (2)

    $

    1.1

     

     

    $

    0.8

     

     

    40%

     

     

     

     

     

     

    (1) See reconciliation on page 14.

    (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 results in the quarter were impacted, like the industry, by the challenging market environment and $12 million of negative mark-to-market impacts.

    Pretax adjusted operating earnings and adjusted operating net revenues declined to $146 million and $785 million, respectively, primarily from lower fee revenue resulting from market depreciation and net outflows, as well as mark-to-market impacts in the quarter and timing of performance fees. Earnings from performance fees were $30 million higher in the prior year. Net pretax adjusted operating margin was 29 percent in the quarter.

    Adjusted operating expenses decreased 12 percent. G&A and other expenses continue to be well managed, down 6 percent. Distribution expenses decreased 22 percent primarily from market depreciation and lower sales.

    Total AUM decreased 23 percent to $584 billion primarily from market depreciation. Investment performance remained strong in a volatile environment with 131 funds with 4- and 5-star Morningstar ratings.

    In the quarter, net outflows were $0.4 billion and included $1.7 billion of outflows related to legacy insurance partners. Institutional inflows continued to offset elevated retail outflows.

    • Retail net outflows were $3.7 billion, which included reinvested dividends. In North America, there were outflows in equity and fixed income strategies, similar to industry trends. In EMEA, outflows persisted as investor sentiment remained weak from higher interest rates and geopolitical strain.
    • Global institutional net inflows were $5.0 billion primarily from liability-driven investing mandates.

    Ameriprise Financial, Inc.

    Retirement & Protection Solutions Segment Adjusted Operating Results

     

    Quarter Ended December 31,

     

    % Over/

    (Under)

    (in millions, unaudited)

    2022

     

    2021

     

    Adjusted operating net revenues

    $

    816

     

     

    $

    815

     

     

    Adjusted operating expenses

     

    587

     

     

     

    632

     

     

    7%

    Pretax adjusted operating earnings

    $

    229

     

     

    $

    183

       

    25%

     

     

     

     

     

     

    Retirement & Protection Solutions continues to generate strong free cash flow with a differentiated risk profile. We took strategic actions in the quarter to reposition the investment portfolio to extend duration to capture benefits from higher interest rates, a portion of which was recognized in the quarter.

    Pretax adjusted operating earnings were $229 million, up 25 percent from last year, primarily due to higher investment income, lower amortization of deferred acquisition cost and lower sales levels.

    Retirement & Protection Solutions sales continued to reflect muted overall industry sales levels as well as management actions to optimize our business mix. Protection sales decreased 30 percent to $68 million, primarily related to the market environment. The majority of sales remain in higher-margin accumulation VUL products. Variable annuity sales decreased 39 percent to $0.9 billion, reflecting the discontinuation of sales with living benefit riders that was completed in June, as well as the industry slowdown due to market dislocation.

    Ameriprise Financial, Inc.

    Corporate & Other Segment Adjusted Operating Results

     

    Quarter Ended December 31,

     

    % Over/

    (Under)

    (in millions, unaudited)

    2022

     

    2021

     

    Corporate & Other, excluding Closed Blocks

    $

    (81

    )

     

    $

    (88

    )

     

    8%

    Closed Blocks (1)

     

    14

     

     

     

    (3

    )

     

    NM

    Pretax adjusted operating earnings

    $

    (67

    )

     

    $

    (91

    )

     

    26%

     

     

     

     

     

     

    Long Term Care

    $

    18

     

     

    $

    4

     

     

    NM

    Fixed Annuities

     

    (4

    )

     

     

    (7

    )

     

    43%

    Closed Blocks pretax adjusted operating earnings

    $

    14

     

     

    $

    (3

    )

     

    NM

     

     

     

     

     

     

    (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 $67 million, a $24 million improvement from the prior year.

    Corporate & Other, excluding Closed Blocks, pretax adjusted operating loss was $81 million, a $7 million improvement from the prior year, which included a $15 million unfavorable impact from share price appreciation on compensation-related expense.

    Long Term Care pretax adjusted operating earnings were $18 million, reflecting the repositioning of the investment portfolio, impacts from premium rate increases and benefit reductions, and improved underlying claims experience, as well as a benefit from a claims processing catch-up by our third-party vendor.

    Fixed Annuities pretax adjusted operating loss was in line with expectations at $4 million.

    Taxes

    The operating effective tax rate increased to 20.6 percent for the fourth quarter and 19.7 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 investment advice, asset management and insurance capabilities and a nationwide network of more than 10,000 financial advisors, we have the strength and expertise to serve the full range of individual and institutional investors’ financial needs. 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; 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-K for the period ended December 31, 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.

    J.D. Power 2022 Certified Customer Service ProgramSM recognition is based on successful completion of an evaluation and exceeding a customer satisfaction benchmark through a survey of recent servicing interactions. Ameriprise advisors evaluated the firm’s performance in these factors: satisfaction with the IVR routing process, and the customer service representative which includes knowledge, courtesy, concern, call duration/transfers/hold time, and timeliness of resolution in addition to overall satisfaction. Ameriprise paid a fee to J.D. Power to be independently evaluated through this program and cite the results. Ameriprise’s use of results of the evaluation is subject to a license fee. For more information, visit https://www.jdpower.com/ccc.

    Ameriprise Financial, Inc.

    Consolidated GAAP Results

    (in millions, except per share amounts, unaudited)

    4 Qtr 2022

     

    4 Qtr 2021

    % Over/

    (Under)

    3 Qtr 2022

    % Over/

    (Under)

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

    2,125

     

     

    $

    2,555

     

    (17)%

    $

    2,172

     

    (2)%

    Distribution fees

     

    528

     

     

     

    462

     

    14%

     

    506

     

    4%

    Net investment income

     

    577

     

     

     

    255

     

    NM

     

    349

     

    65%

    Premiums, policy and contract charges

     

    317

     

     

     

    367

     

    (14)%

     

    361

     

    (12)%

    Other revenues

     

    126

     

     

     

    123

     

    2%

     

    118

     

    7%

    Total revenues

     

    3,673

     

     

     

    3,762

     

    (2)%

     

    3,506

     

    5%

    Banking and deposit interest expense

     

    56

     

     

     

    2

     

    NM

     

    15

     

    NM

    Total net revenues

     

    3,617

     

     

     

    3,760

     

    (4)%

     

    3,491

     

    4%

                             

    Expenses

     

     

     

     

     

     

    Distribution expenses

     

    1,195

     

     

     

    1,322

     

    10%

     

    1,195

     

    Interest credited to fixed accounts

     

    222

     

     

     

    145

     

    (53)%

     

    157

     

    (41)%

    Benefits, claims, losses and settlement expenses

     

    709

     

     

     

    378

     

    (88)%

     

    370

     

    (92)%

    Amortization of deferred acquisition costs

     

    (147

    )

     

     

    47

     

    NM

     

    107

     

    NM

    Interest and debt expense

     

    62

     

     

     

    42

     

    (48)%

     

    52

     

    (19)%

    General and administrative expense

     

    957

     

     

     

    960

     

     

    925

     

    (3)%

    Total expenses

     

    2,998

     

     

     

    2,894

     

    (4)%

     

    2,806

     

    (7)%

    Pretax income

     

    619

     

     

     

    866

     

    (29)%

     

    685

     

    (10)%

    Income tax provision

     

    125

     

     

     

    165

     

    24%

     

    137

     

    9%

    Net income

    $

    494

     

     

    $

    701

     

    (30)%

    $

    548

     

    (10)%

     

     

     

     

     

     

     

    Earnings per share

     

     

     

     

     

     

    Basic earnings per share

    $

    4.54

     

     

    $

    6.12

     

     

    $

    4.96

     

     

    Earnings per diluted share

    $

    4.43

     

     

    $

    5.96

     

     

    $

    4.86

     

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding

     

     

     

     

     

     

    Basic

     

    108.9

     

     

     

    114.6

     

     

     

    110.5

     

     

    Diluted

     

    111.4

     

     

     

    117.6

     

     

     

    112.7

     

     

     

     

     

     

     

     

     

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

    Ameriprise Financial, Inc.

    Consolidated Highlights and Capital Summary

    (in millions unless otherwise noted, unaudited)

    4 Qtr 2022

     

    4 Qtr 2021

    % Over/

    (Under)

    3 Qtr 2022

    % Over/

    (Under)

     

     

     

     

     

     

     

    Assets Under Management and Administration

    Advice & Wealth Management AUM

    $

    409,027

     

     

    $

    460,935

     

    (11)%

    $

    382,364

     

    7%

    Asset Management AUM

     

    584,029

     

     

     

    754,056

     

    (23)%

     

    546,493

     

    7%

    Corporate AUM

     

    212

     

     

     

    136

     

    56%

     

    170

     

    25%

    Eliminations

     

    (36,945

    )

     

     

    (44,160

    )

    16%

     

    (35,494

    )

    (4)%

    Total Assets Under Management

     

    956,323

     

     

     

    1,170,967

     

    (18)%

     

    893,533

     

    7%

    Total Assets Under Administration

     

    222,011

     

     

     

    246,891

     

    (10)%

     

    207,965

     

    7%

    Total AUM and AUA

    $

    1,178,334

     

     

    $

    1,417,858

     

    (17)%

    $

    1,101,498

     

    7%

     

     

     

     

     

     

     

    S&P 500

     

     

     

     

     

     

    Daily average

     

    3,850

     

     

     

    4,600

     

    (16)%

     

    3,983

     

    (3)%

    Period end

     

    3,840

     

     

     

    4,766

     

    (19)%

     

    3,586

     

    7%

     

     

     

     

     

     

     

    Weighted Equity Index (WEI) (1)

     

     

     

     

     

     

    Daily average

     

    2,536

     

     

     

    3,068

     

    (17)%

     

    2,606

     

    (3)%

    Period end

     

    2,549

     

     

     

    3,152

     

    (19)%

     

    2,347

     

    9%

     

     

     

     

     

     

     

    Common shares

     

     

     

     

     

     

    Beginning balance

     

    106.7

     

     

     

    112.4

     

    (5)%

     

    108.4

     

    (2)%

    Repurchases

     

    (1.6

    )

     

     

    (1.6

    )

     

    (1.8

    )

    11%

    Issuances

     

    0.3

     

     

     

    0.4

     

    (25)%

     

    0.1

     

    NM

    Other

     

    (0.1

    )

     

     

    (0.3

    )

    67%

     

     

    Total common shares outstanding

     

    105.3

     

     

     

    110.9

     

    (5)%

     

    106.7

     

    (1)%

    Restricted stock units

     

    2.8

     

     

     

    3.0

     

    (7)%

     

    2.8

     

    Total basic common shares outstanding

     

    108.1

     

     

     

    113.9

     

    (5)%

     

    109.5

     

    (1)%

    Total potentially dilutive shares

     

    2.5

     

     

     

    2.9

     

    (14)%

     

    2.3

     

    9%

    Total diluted shares

     

    110.6

     

     

     

    116.8

     

    (5)%

     

    111.8

     

    (1)%

     

     

     

     

     

     

     

    Capital Returned to Shareholders

     

     

     

     

     

     

    Dividends paid

    $

    138

     

     

    $

    131

     

    5%

    $

    140

     

    (1)%

    Common stock share repurchases

     

    472

     

     

     

    499

     

    (5)%

     

    492

     

    (4)%

    Total Capital Returned to Shareholders

    $

    610

     

     

    $

    630

     

    (3)%

    $

    632

     

    (3)%

     

     

     

     

     

     

     

    (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)

    4 Qtr 2022

    4 Qtr 2021

    % Over/

    (Under)

    3 Qtr 2022

    % Over/

    (Under)

     

     

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

     

     

    Management and financial advice fees:

     

     

     

     

     

     

     

     

    Advisory fees

    $

    1,084

     

    $

    1,209

     

    (10)%

    $

    1,107

     

    (2)%

    Financial planning fees

     

    117

     

     

    114

     

    3%

     

    97

     

    21%

    Transaction and other fees

     

    90

     

     

    96

     

    (6)%

     

    93

     

    (3)%

    Total management and financial advice fees

     

    1,291

     

     

    1,419

     

    (9)%

     

    1,297

     

    Distribution fees:

     

     

     

     

     

     

     

     

    Mutual funds

     

    171

     

     

    220

     

    (22)%

     

    180

     

    (5)%

    Insurance and annuity

     

    203

     

     

    256

     

    (21)%

     

    205

     

    (1)%

    Off-Balance sheet brokerage cash (1)

     

    144

     

     

    14

     

    NM

     

    110

     

    31%

    Other products

     

    81

     

     

    81

     

     

    84

     

    (4)%

    Total distribution fees

     

    599

     

     

    571

     

    5%

     

    579

     

    3%

    Net investment income

     

    331

     

     

    68

     

    NM

     

    219

     

    51%

    Other revenues

     

    61

     

     

    58

     

    5%

     

    57

     

    7%

    Total revenues

     

    2,282

     

     

    2,116

     

    8%

     

    2,152

     

    6%

    Banking and deposit interest expense

     

    56

     

     

    2

     

    NM

     

    15

     

    NM

    Adjusted operating total net revenues

     

    2,226

     

     

    2,114

     

    5%

     

    2,137

     

    4%

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

     

     

    Distribution expenses

     

    1,153

     

     

    1,275

     

    10%

     

    1,149

     

    Interest and debt expense

     

    2

     

     

    2

     

     

    3

     

    33%

    General and administrative expense

     

    406

     

     

    365

     

    (11)%

     

    390

     

    (4)%

    Adjusted operating expenses

     

    1,561

     

     

    1,642

     

    5%

     

    1,542

     

    (1)%

    Pretax adjusted operating earnings

    $

    665

     

    $

    472

     

    41%

    $

    595

     

    12%

     

     

     

     

     

     

     

     

     

    Pretax adjusted operating margin

     

    29.9

    %

     

    22.3

    %

     

     

    27.8

    %

     

     

     

     

     

     

     

     

     

     

    (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)

    4 Qtr 2022

    4 Qtr 2021

    % Over/

    (Under)

    3 Qtr 2022

    % Over/

    (Under)

     

     

     

     

     

     

     

     

     

    AWM Total Client Assets

    $

    758,156

     

    $

    857,584

     

    (12)%

    $

    711,428

     

     

    7%

     

     

     

     

     

     

     

     

     

    Total Client Flows (1)

    $

    12,381

     

    $

    12,542

     

    (1)%

    $

    11,164

     

     

    11%

     

     

     

     

     

     

     

     

     

    Total Wrap Accounts

     

     

     

     

     

     

     

     

    Beginning assets

    $

    385,210

     

    $

    435,375

     

    (12)%

    $

    399,287

     

     

    (4)%

    Net flows

     

    6,212

     

     

    10,541

     

    (41)%

     

    6,449

     

     

    (4)%

    Market appreciation (depreciation) and other

     

    20,674

     

     

    18,772

     

    10%

     

    (20,526

    )

     

    NM

    Total wrap ending assets

    $

    412,096

     

    $

    464,688

     

    (11)%

    $

    385,210

     

     

    7%

     

     

     

     

     

     

     

     

     

    Advisory wrap account assets ending balance (2)

    $

    407,759

     

    $

    459,499

     

    (11)%

    $

    381,136

     

     

    7%

     

     

     

     

     

     

     

     

     

    Brokerage Cash & Certificates Balances

     

     

     

     

     

     

     

     

    On-balance sheet (Net Investment Income)

     

     

     

     

     

     

     

     

    On-balance sheet – broker dealer

    $

    3,168

     

    $

    3,513

     

    (10)%

    $

    3,345

     

     

    (5)%

    On-balance sheet – bank

     

    18,305

     

     

    11,419

     

    60%

     

    18,594

     

     

    (2)%

    On-balance sheet – certificate

     

    9,313

     

     

    5,300

     

    76%

     

    6,202

     

     

    50%

    Total on-balance sheet

    $

    30,786

     

    $

    20,232

     

    52%

    $

    28,141

     

     

    9%

    Off-balance sheet (Distribution Fees)

     

     

     

     

     

     

     

     

    Off-balance sheet – broker dealer

    $

    16,425

     

    $

    23,593

     

    (30)%

    $

    18,155

     

     

    (10)%

    Total brokerage cash & certificates balances

    $

    47,211

     

    $

    43,825

     

    8%

    $

    46,296

     

     

    2%

     

    Gross Fee Yield

     

     

     

     

     

     

     

     

    On-balance sheet – broker dealer

     

    3.14

    %

     

    0.06

    %

     

     

    1.74

     

    %

     

    On-balance sheet – bank

     

    4.08

    %

     

    1.27

    %

     

     

    2.98

     

    %

     

    On-balance sheet – certificates

     

    3.98

    %

     

    0.94

    %

     

     

    2.75

     

    %

     

    Off-balance sheet – broker dealer

     

    3.31

    %

     

    0.26

    %

     

     

    2.13

     

    %

     

     

     

     

     

     

     

     

     

     

    Weighted Average Gross Fee Yield

     

    3.73

    %

     

    0.62

    %

     

     

    2.51

     

    %

     

     

     

     

     

     

     

     

     

     

    Financial Advisors

     

     

     

     

     

     

     

     

    Employee advisors

     

    2,096

     

     

    2,128

     

    (2)%

     

    2,089

     

     

    Franchisee advisors

     

    8,173

     

     

    7,988

     

    2%

     

    8,193

     

     

    Total financial advisors

     

    10,269

     

     

    10,116

     

    2%

     

    10,282

     

     

     

     

     

     

     

     

     

     

     

    Advisor Retention

     

     

     

     

     

     

     

     

    Employee

     

    92.1

    %

     

    92.0

    %

     

     

    91.9

     

    %

     

    Franchisee

     

    94.1

    %

     

    94.2

    %

     

     

    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.

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

    Ameriprise Financial, Inc.

    Asset Management Segment Adjusted Operating Results

    (in millions, unaudited)

    4 Qtr 2022

    4 Qtr 2021

    % Over/

    (Under)

    3 Qtr 2022

    % Over/

    (Under)

     

     

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

     

     

    Management and financial advice fees:

     

     

     

     

     

     

     

     

    Asset management fees:

     

     

     

     

     

     

     

     

    Retail

    $

    483

     

     

    $

    624

     

     

    (23)%

    $

    509

     

     

    (5)%

    Institutional

     

    151

     

     

     

    248

     

     

    (39)%

     

    159

     

     

    (5)%

    Transaction and other fees

     

    50

     

     

     

    58

     

     

    (14)%

     

    51

     

     

    (2)%

    Revenue from other sources (1)

     

    4

     

     

     

    7

     

     

    (43)%

     

    4

     

     

    Total management and financial advice fees

     

    688

     

     

     

    937

     

     

    (27)%

     

    723

     

     

    (5)%

    Distribution fees:

     

     

     

     

     

     

     

     

    Mutual funds

     

    52

     

     

     

    70

     

     

    (26)%

     

    56

     

     

    (7)%

    Insurance and annuity

     

    38

     

     

     

    49

     

     

    (22)%

     

    40

     

     

    (5)%

    Total distribution fees

     

    90

     

     

     

    119

     

     

    (24)%

     

    96

     

     

    (6)%

    Net investment income

     

    3

     

     

     

    2

     

     

    50%

     

    2

     

     

    50%

    Other revenues

     

    4

     

     

     

    2

     

     

    NM

     

    2

     

     

    NM

    Total revenues

     

    785

     

     

     

    1,060

     

     

    (26)%

     

    823

     

     

    (5)%

    Banking and deposit interest expense

     

     

     

     

     

     

     

     

     

    Adjusted operating total net revenues

     

    785

     

     

     

    1,060

     

     

    (26)%

     

    823

     

     

    (5)%

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

     

     

    Distribution expenses

     

    228

     

     

     

    294

     

     

    22%

     

    238

     

     

    4%

    Amortization of deferred acquisition costs

     

    1

     

     

     

    3

     

     

    67%

     

    2

     

     

    50%

    Interest and debt expense

     

    2

     

     

     

    2

     

     

     

    1

     

     

    NM

    General and administrative expense

     

    408

     

     

     

    431

     

     

    5%

     

    391

     

     

    (4)%

    Adjusted operating expenses

     

    639

     

     

     

    730

     

     

    12%

     

    632

     

     

    (1)%

    Pretax adjusted operating earnings

    $

    146

     

     

    $

    330

     

     

    (56)%

    $

    191

     

     

    (24)%

     

     

     

     

     

     

     

     

     

    Net Pretax Adjusted Operating Margin Reconciliation

     

     

     

     

     

     

     

    Adjusted operating total net revenues

    $

    785

     

     

    $

    1,060

     

     

    (26)%

    $

    823

     

     

    (5)%

    Distribution pass thru revenues

     

    (179

    )

     

     

    (234

    )

     

    24%

     

    (187

    )

     

    4%

    Subadvisory and other pass thru revenues

     

    (88

    )

     

     

    (97

    )

     

    9%

     

    (91

    )

     

    3%

    Net adjusted operating revenues

    $

    518

     

     

    $

    729

     

     

    (29)%

    $

    545

     

     

    (5)%

     

     

     

     

     

     

     

     

     

    Pretax adjusted operating earnings

    $

    146

     

     

    $

    330

     

     

    (56)%

    $

    191

     

     

    (24)%

    Adjusted operating net investment income

     

    (3

    )

     

     

    (2

    )

     

    (50)%

     

    (2

    )

     

    (50)%

    Amortization of intangibles

     

    5

     

     

     

    5

     

     

     

    5

     

     

    Net adjusted operating earnings

    $

    148

     

     

    $

    333

     

     

    (56)%

    $

    194

     

     

    (24)%

     

     

     

     

     

     

     

     

     

    Pretax adjusted operating margin

     

    18.6

     

    %

     

    31.1

     

    %

     

     

    23.2

     

    %

     

    Net pretax adjusted operating margin (2)

     

    28.6

     

    %

     

    45.7

     

    %

     

     

    35.6

     

    %

     

     

     

     

     

     

     

     

     

     

    Performance fees (3)

     

     

     

     

     

     

     

     

    Performance fees

    $

    8

     

     

    $

    90

     

     

    (91)%

    $

    1

     

     

    NM

    General and administrative expense related to performance fees

     

    3

     

     

     

    55

     

     

    95%

     

     

     

    Net performance fees

    $

    5

     

     

    $

    35

     

     

    (86)%

    $

    1

     

     

    NM

     

     

     

     

     

     

     

     

     

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

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

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

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

    Ameriprise Financial, Inc.

    Asset Management Segment Operating Metrics

    (in millions, unaudited)

    4 Qtr 2022

    4 Qtr 2021

    % Over/

    (Under)

    3 Qtr 2022

    % Over/

    (Under)

     

     

     

     

     

     

     

     

     

    Managed Assets Rollforward (1)

     

     

     

     

     

     

     

     

    Global Retail Funds

     

     

     

     

     

     

     

     

    Beginning assets

    $

    296,203

     

     

    $

    355,719

     

     

    (17)%

    $

    322,938

     

     

    (8)%

    Inflows

     

    11,836

     

     

     

    20,084

     

     

    (41)%

     

    11,715

     

     

    1%

    Outflows

     

    (20,128

    )

     

     

    (18,568

    )

     

    (8)%

     

    (17,642

    )

     

    (14)%

    Net VP/VIT fund flows

     

    (1,133

    )

     

     

    (1,093

    )

     

    (4)%

     

    (999

    )

     

    (13)%

    Net new flows (2)

     

    (9,425

    )

     

     

    423

     

     

    NM

     

    (6,926

    )

     

    (36)%

    Reinvested dividends

     

    5,676

     

     

     

    13,414

     

     

    (58)%

     

    1,647

     

     

    NM

    Net flows

     

    (3,749

    )

     

     

    13,837

     

     

    NM

     

    (5,279

    )

     

    29%

    Distributions

     

    (6,357

    )

     

     

    (15,093

    )

     

    58%

     

    (1,861

    )

     

    NM

    Acquired assets (3)

     

     

     

     

    36,980

     

     

    NM

     

     

     

    Market appreciation (depreciation) and other

     

    18,606

     

     

     

    18,478

     

     

    1%

     

    (15,281

    )

     

    NM

    Foreign currency translation (4)

     

    4,590

     

     

     

    (552

    )

     

    NM

     

    (4,314

    )

     

    NM

    Total ending assets

     

    309,293

     

     

     

    409,369

     

     

    (24)%

     

    296,203

     

     

    4%

    % of total retail assets sub-advised (9)

     

    16.0

     

    %

     

    14.7

     

    %

     

     

    15.7

     

    %

     

     

     

     

     

     

     

     

     

     

    Global Institutional

     

     

     

     

     

     

     

     

    Beginning assets

     

    250,290

     

     

     

    227,679

     

     

    10%

     

    275,212

     

     

    (9)%

    Inflows (5)

     

    15,374

     

     

     

    24,449

     

     

    (37)%

     

    14,932

     

     

    3%

    Outflows (5)

     

    (12,042

    )

     

     

    (10,817

    )

     

    (11)%

     

    (12,056

    )

     

    Net flows (2)

     

    3,332

     

     

     

    13,632

     

     

    (76)%

     

    2,876

     

     

    16%

    Acquired assets (3)

     

     

     

     

    99,236

     

     

    NM

     

     

     

    Market appreciation (depreciation) and other (6)

     

    10,952

     

     

     

    5,244

     

     

    NM

     

    (17,785

    )

     

    NM

    Foreign currency translation (4)

     

    10,162

     

     

     

    (1,104

    )

     

    NM

     

    (10,013

    )

     

    NM

    Total ending assets

     

    274,736

     

     

     

    344,687

     

     

    (20)%

     

    250,290

     

     

    10%

     

     

     

     

     

     

     

     

     

    Total managed assets

    $

    584,029

     

     

    $

    754,056

     

     

    (23)%

    $

    546,493

     

     

    7%

     

     

     

     

     

     

     

     

     

    Total net flows

    $

    (417

    )

     

    $

    27,469

     

     

    NM

    $

    (2,403

    )

     

    83%

     

     

     

     

     

     

     

     

     

    Legacy insurance partners flows

    $

    (1,663

    )

     

    $

    (920

    )

     

    (81)%

    $

    (1,053

    )

     

    (58)%

     

     

     

     

     

     

     

     

     

    Total Assets Under Advisement (7)

    $

    22,163

     

     

    $

    20,194

     

     

    10%

    $

    22,313

     

     

    (1)%

    Model delivery AUA flows (8)

    $

    1,146

     

     

    $

    820

     

     

    40%

    $

    (542

    )

     

    NM

     

     

     

     

     

     

     

     

     

    (1) Q4 2021 rollforwards were restated for a reclass between retail and institutional. Total AUM remained unchanged.

    (2) Included in net flows are the amounts from the US asset transfer from the BMO acquisition of $16,948 ($2,922 retail and $14,026 institutional) from Q4 2021.

    (3) Reflects the acquisition of BMO’s EMEA Asset Management business that closed on November 8, 2021.

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

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

    (6) 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.

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

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

    (9) Q4 2021 % of total retail assets sub-advised has been restated.

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

    Ameriprise Financial, Inc.

    Asset Management Segment Operating Metrics

    (in millions, unaudited)

    4 Qtr 2022

     

    4 Qtr 2021

    % Over/

    (Under)

    3 Qtr 2022

    % Over/

    (Under)

     

     

     

     

     

     

     

    Total Managed Assets by Type (1)

     

     

     

     

     

     

    Equity

    $

    301,223

     

     

    $

    402,841

     

    (25)%

    $

    278,446

     

    8%

    Fixed income

     

    209,997

     

     

     

    277,039

     

    (24)%

     

    194,643

     

    8%

    Money market

     

    21,936

     

     

     

    10,084

     

    NM

     

    21,261

     

    3%

    Alternative

     

    33,697

     

     

     

    39,872

     

    (15)%

     

    35,238

     

    (4)%

    Hybrid and other

     

    17,176

     

     

     

    24,220

     

    (29)%

     

    16,905

     

    2%

    Total managed assets by type

    $

    584,029

     

     

    $

    754,056

     

    (23)%

    $

    546,493

     

    7%

     

     

     

     

     

     

     

    Average Managed Assets by Type (1) (2)

     

     

     

     

     

     

    Equity

    $

    298,195

     

     

    $

    372,152

     

    (20)%

    $

    305,078

     

    (2)%

    Fixed income

     

    204,680

     

     

     

    251,533

     

    (19)%

     

    214,305

     

    (4)%

    Money market

     

    21,876

     

     

     

    8,258

     

    NM

     

    18,499

     

    18%

    Alternative

     

    34,510

     

     

     

    33,939

     

    2%

     

    36,962

     

    (7)%

    Hybrid and other

     

    17,133

     

     

     

    23,686

     

    (28)%

     

    18,417

     

    (7)%

    Total average managed assets by type

    $

    576,394

     

     

    $

    689,568

     

    (16)%

    $

    593,261

     

    (3)%

     

     

     

     

     

     

     

    (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

     

    4 Qtr 2022

     

     

     

     

     

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

    1 year

    3 year

    5 year

    10 year

    Equity

    56%

    75%

    75%

    90%

    Fixed Income

    39%

    52%

    56%

    86%

    Asset Allocation

    22%

    61%

    70%

    90%

     

     

     

     

     

    4- or 5-star Morningstar rated funds

    Overall

    3 year

    5 year

    10 year

    Number of Rated Funds

    131

    91

    86

    99

    Percent of Rated Assets

    55%

    43%

    45%

    57%

     

     

     

     

     

    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 based on the Primary Share Class. Comparisons to Index are measured Gross of Fees.

     

     

     

     

     

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

     

     

     

     

     

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

     

     

     

     

     

    Morningstar as of 12/31/22. Columbia funds are available for purchase by U.S. customers. Out of 104 Columbia funds rated (based on primary share class), 15 received a 5-star Overall Rating and 35 received a 4-star Overall Rating. Out of 157 Threadneedle funds rated (based on primary share class), 27 received a 5-star Overall Rating and 54 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)

    4 Qtr 2022

     

    4 Qtr 2021

    % Over/

    (Under)

    3 Qtr 2022

    % Over/

    (Under)

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

    184

     

     

    $

    237

     

    (22)%

    $

    189

     

    (3)%

    Distribution fees

     

    98

     

     

     

    124

     

    (21)%

     

    101

     

    (3)%

    Net investment income

     

    180

     

     

     

    113

     

    59%

     

    151

     

    19%

    Premiums, policy and contract charges

     

    352

     

     

     

    337

     

    4%

     

    342

     

    3%

    Other revenues

     

    2

     

     

     

    4

     

    (50)%

     

    3

     

    (33)%

    Total revenues

     

    816

     

     

     

    815

     

     

    786

     

    4%

    Banking and deposit interest expense

     

     

     

     

     

     

     

    Adjusted operating total net revenues

     

    816

     

     

     

    815

     

     

    786

     

    4%

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

     

    99

     

     

     

    134

     

    26%

     

    103

     

    4%

    Interest credited to fixed accounts

     

    97

     

     

     

    96

     

    (1)%

     

    97

     

    Benefits, claims, losses and settlement expenses

     

    253

     

     

     

    244

     

    (4)%

     

    414

     

    39%

    Amortization of deferred acquisition costs

     

    48

     

     

     

    70

     

    31%

     

    49

     

    2%

    Interest and debt expense

     

    11

     

     

     

    9

     

    (22)%

     

    10

     

    (10)%

    General and administrative expense

     

    79

     

     

     

    79

     

     

    82

     

    4%

    Adjusted operating expenses

     

    587

     

     

     

    632

     

    7%

     

    755

     

    22%

    Pretax adjusted operating earnings

    $

    229

     

     

    $

    183

     

    25%

    $

    31

     

    NM

     

     

     

     

     

     

     

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

    Ameriprise Financial, Inc.

    Retirement & Protection Solutions Segment Operating Metrics

    (in millions, unaudited)

    4 Qtr 2022

     

    4 Qtr 2021

    % Over/

    (Under)

    3 Qtr 2022

    % Over/

    (Under)

     

     

     

     

     

     

     

    Variable Annuities Rollforwards

     

     

     

     

     

     

    Beginning balance

    $

    71,262

     

     

    $

    89,635

     

    (20)%

    $

    75,687

     

    (6)%

    Deposit

     

    930

     

     

     

    1,530

     

    (39)%

     

    923

     

    1%

    Withdrawals and terminations

     

    (1,543

    )

     

     

    (2,011

    )

    23%

     

    (1,419

    )

    (9)%

    Net flows

     

    (613

    )

     

     

    (481

    )

    (27)%

     

    (496

    )

    (24)%

    Investment performance and interest credited

     

    3,736

     

     

     

    3,138

     

    19%

     

    (3,929

    )

    NM

    Total ending balance – contract accumulation values

    $

    74,385

     

     

    $

    92,292

     

    (19)%

    $

    71,262

     

    4%

     

     

     

     

     

     

     

    Variable annuities fixed sub-accounts

    $

    4,779

     

     

    $

    4,990

     

    (4)%

    $

    4,887

     

    (2)%

     

     

     

     

     

     

     

    Life Insurance In Force

    $

    198,859

     

     

    $

    198,553

     

    $

    198,510

     

     

     

     

     

     

     

     

    Net Amount at Risk (Life)

    $

    38,638

     

     

    $

    37,652

     

    3%

    $

    39,432

     

    (2)%

     

     

     

     

     

     

     

    Net Policyholder Reserves

     

     

     

     

     

     

    VUL/UL

    $

    13,357

     

     

    $

    15,049

     

    (11)%

    $

    12,718

     

    5%

    Term and whole life

     

    159

     

     

     

    167

     

    (5)%

     

    161

     

    (1)%

    Disability insurance

     

    465

     

     

     

    483

     

    (4)%

     

    469

     

    (1)%

    Other insurance

     

    564

     

     

     

    608

     

    (7)%

     

    573

     

    (2)%

    Total net policyholder reserves

    $

    14,545

     

     

    $

    16,307

     

    (11)%

    $

    13,921

     

    4%

     

     

     

     

     

     

     

    DAC Ending Balances

     

     

     

     

     

     

    Variable Annuities DAC

    $

    1,967

     

     

    $

    1,876

     

    5%

    $

    1,808

     

    9%

    Life and Health DAC

    $

    1,146

     

     

    $

    847

     

    35%

    $

    1,137

     

    1%

     

     

     

     

     

     

     

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

    Ameriprise Financial, Inc.

    Corporate Segment Adjusted Operating Results and Metrics

    (in millions, unaudited)

    4 Qtr 2022

     

    4 Qtr 2021

    % Over/

    (Under)

    3 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

     

    (3

    )

     

     

    (12

    )

    75%

     

    (11

    )

    73%

    Premiums, policy and contract charges

     

     

     

     

    (1

    )

    NM

     

     

    Other revenues

     

    3

     

     

     

    4

     

    (25)%

     

    2

     

    50%

    Total revenues

     

     

     

     

    (9

    )

    NM

     

    (9

    )

    NM

    Banking and deposit interest expense

     

    3

     

     

     

    1

     

    NM

     

    2

     

    (50)%

    Adjusted operating total net revenues

     

    (3

    )

     

     

    (10

    )

    70%

     

    (11

    )

    73%

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

     

     

     

     

     

     

     

    Interest credited to fixed accounts

     

     

     

     

     

     

     

    Benefits, claims, losses and settlement expenses

     

     

     

     

    (1

    )

    NM

     

     

    Amortization of deferred acquisition costs

     

     

     

     

    (1

    )

    NM

     

     

    Interest and debt expense

     

    19

     

     

     

    13

     

    (46)%

     

    14

     

    (36)%

    General and administrative expense

     

    59

     

     

     

    67

     

    12%

     

    48

     

    (23)%

    Adjusted operating expenses

     

    78

     

     

     

    78

     

     

    62

     

    (26)%

    Pretax adjusted operating earnings (loss)

    $

    (81

    )

     

    $

    (88

    )

    8%

    $

    (73

    )

    (11)%

     

     

     

     

     

     

     

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

    Ameriprise Financial, Inc.

    Corporate Segment Adjusted Operating Results and Metrics

    (in millions, unaudited)

    4 Qtr 2022

     

    4 Qtr 2021

    % Over/

    (Under)

    3 Qtr 2022

    % Over/

    (Under)

     

     

     

     

     

     

     

    Long Term Care Adjusted Operating Income Statements

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

     

     

    $

     

    $

     

    Distribution fees

     

     

     

     

     

     

     

    Net investment income

     

    42

     

     

     

    37

     

    14%

     

    38

     

    11%

    Premiums, policy and contract charges

     

    26

     

     

     

    25

     

    4%

     

    25

     

    4%

    Other revenues

     

     

     

     

     

     

     

    Total revenues

     

    68

     

     

     

    62

     

    10%

     

    63

     

    8%

    Banking and deposit interest expense

     

     

     

     

     

     

     

    Adjusted operating total net revenues

     

    68

     

     

     

    62

     

    10%

     

    63

     

    8%

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

     

    (4

    )

     

     

    (3

    )

    33%

     

    (3

    )

    33%

    Interest credited to fixed accounts

     

     

     

     

     

     

     

    Benefits, claims, losses and settlement expenses

     

    44

     

     

     

    53

     

    17%

     

    62

     

    29%

    Amortization of deferred acquisition costs

     

     

     

     

     

     

     

    Interest and debt expense

     

    3

     

     

     

    2

     

    (50)%

     

    3

     

    General and administrative expense

     

    7

     

     

     

    6

     

    (17)%

     

    4

     

    (75)%

    Adjusted operating expenses

     

    50

     

     

     

    58

     

    14%

     

    66

     

    24%

    Pretax adjusted operating earnings (loss)

    $

    18

     

     

    $

    4

     

    NM

    $

    (3

    )

    NM

     

     

     

     

     

     

     

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

     

     

     

     

     

     

    Active Life Reserves

    $

    1,939

     

     

    $

    2,487

     

    (22)%

    $

    1,949

     

    (1)%

    Disabled Life Reserves

     

    608

     

     

     

    565

     

    8%

     

    606

     

    Total long term care policyholder reserves, net of reinsurance

    $

    2,547

     

     

    $

    3,052

     

    (17)%

    $

    2,555

     

     

     

     

     

     

     

     

    (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)

    4 Qtr 2022

     

    4 Qtr 2021

     

    % Over/

    (Under)

    3 Qtr 2022

    % Over/

    (Under)

     

     

     

     

     

     

     

     

     

    Fixed Annuities Adjusted Operating Income Statements

     

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

     

     

    Management and financial advice fees

    $

     

     

    $

     

     

    $

     

     

    Distribution fees

     

     

     

     

    1

     

     

    NM

     

     

     

    Net investment income

     

    9

     

     

     

    7

     

     

    29%

     

    8

     

     

    13%

    Premiums, policy and contract charges

     

     

     

     

    1

     

     

    NM

     

     

     

    Other revenues

     

    55

     

     

     

    55

     

     

     

    55

     

     

    Total revenues

     

    64

     

     

     

    64

     

     

     

    63

     

     

    2%

    Banking and deposit interest expense

     

     

     

     

     

     

     

     

     

    Adjusted operating total net revenues

     

    64

     

     

     

    64

     

     

     

    63

     

     

    2%

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

     

     

    Distribution expenses

     

     

     

     

     

     

     

    1

     

     

    NM

    Interest credited to fixed accounts

     

    60

     

     

     

    63

     

     

    5%

     

    61

     

     

    2%

    Benefits, claims, losses and settlement expenses

     

    2

     

     

     

    1

     

     

    NM

     

    2

     

     

    Amortization of deferred acquisition costs

     

    2

     

     

     

    3

     

     

    33%

     

    (2

    )

     

    NM

    Interest and debt expense

     

     

     

     

     

     

     

     

     

    General and administrative expense

     

    4

     

     

     

    4

     

     

     

    4

     

     

    Adjusted operating expenses

     

    68

     

     

     

    71

     

     

    4%

     

    66

     

     

    (3)%

    Pretax adjusted operating earnings (loss)

    $

    (4

    )

     

    $

    (7

    )

     

    43%

    $

    (3

    )

     

    (33)%

     

     

     

     

     

     

     

     

     

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

    Ameriprise Financial, Inc.

    Eliminations (1) Adjusted Operating Results

    (in millions, unaudited)

    4 Qtr 2022

     

    4 Qtr 2021

    % Over/

    (Under)

    3 Qtr 2022

    % Over/

    (Under)

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

    (36

    )

     

    $

    (37

    )

    3%

    $

    (35

    )

    (3)%

    Distribution fees

     

    (259

    )

     

     

    (353

    )

    27%

     

    (270

    )

    4%

    Net investment income

     

    (11

    )

     

     

    (4

    )

    NM

     

    (5

    )

    NM

    Premiums, policy and contract charges

     

    (8

    )

     

     

    (8

    )

     

    (8

    )

    Other revenues

     

     

     

     

    1

     

    NM

     

     

    Total revenues

     

    (314

    )

     

     

    (401

    )

    22%

     

    (318

    )

    1%

    Banking and deposit interest expense

     

    (3

    )

     

     

    (1

    )

    NM

     

    (2

    )

    50%

    Adjusted operating total net revenues

     

    (311

    )

     

     

    (400

    )

    22%

     

    (316

    )

    2%

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

     

    (281

    )

     

     

    (378

    )

    (26)%

     

    (293

    )

    (4)%

    Interest credited to fixed accounts

     

     

     

     

     

     

     

    Benefits, claims, losses and settlement expenses

     

     

     

     

    (8

    )

    NM

     

    (5

    )

    NM

    Amortization of deferred acquisition costs

     

     

     

     

     

     

     

    Interest and debt expense

     

    (8

    )

     

     

    (3

    )

    NM

     

    (3

    )

    NM

    General and administrative expense

     

    (22

    )

     

     

    (11

    )

    NM

     

    (15

    )

    47%

    Adjusted operating expenses

     

    (311

    )

     

     

    (400

    )

    (22)%

     

    (316

    )

    (2)%

    Pretax adjusted operating earnings (loss)

    $

     

     

    $

     

    $

     

     

     

     

     

     

     

     

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

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

    Ameriprise Financial, Inc.

    Capital Information

    (in millions, unaudited)

    December 31,
    2022

    December 31,
    2021

    September 30,
    2022

     

     

     

     

     

     

     

    Long-term Debt Summary

     

     

     

     

     

     

    Senior notes

    $

    2,800

     

     

    $

    2,800

     

     

    $

    2,800

     

     

    Finance lease liabilities

     

    30

     

     

     

    40

     

     

     

    33

     

     

    Other (1)

     

    (9

    )

     

     

    (8

    )

     

     

    (11

    )

     

    Total Ameriprise Financial long-term debt

     

    2,821

     

     

     

    2,832

     

     

     

    2,822

     

     

    Non-recourse debt of consolidated investment entities

     

    2,363

     

     

     

    2,164

     

     

     

    2,401

     

     

    Total long-term debt

    $

    5,184

     

     

    $

    4,996

     

     

    $

    5,223

     

     

     

     

     

     

     

     

     

    Total Ameriprise Financial long-term debt

    $

    2,821

     

     

    $

    2,832

     

     

    $

    2,822

     

     

    Finance lease liabilities

     

    (30

    )

     

     

    (40

    )

     

     

    (33

    )

     

    Other (1)

     

    9

     

     

     

    8

     

     

     

    11

     

     

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

    $

    2,800

     

     

    $

    2,800

     

     

    $

    2,800

     

     

     

     

     

     

     

     

     

    Total equity (2) (3)

    $

    3,613

     

     

    $

    5,941

     

     

    $

    3,257

     

     

    Equity of consolidated investment entities

     

    (7

    )

     

     

    (3

    )

     

     

    (6

    )

     

    Total equity excluding CIEs

    $

    3,606

     

     

    $

    5,938

     

     

    $

    3,251

     

     

     

     

     

     

     

     

     

    Total Ameriprise Financial capital (3)

    $

    6,434

     

     

    $

    8,773

     

     

    $

    6,079

     

     

    Total Ameriprise Financial capital excluding finance lease liabilities, other and equity of CIEs (3)

    $

    6,406

     

     

    $

    8,738

     

     

    $

    6,051

     

     

     

     

     

     

     

     

     

    Debt to capital

     

     

     

     

     

     

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

     

    43.8

     

    %

     

    32.3

     

    %

     

    46.4

     

    %

                             

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

     

    43.7

     

    %

     

    32.0

     

    %

     

    46.3

     

    %

     

     

     

     

     

     

     

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

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

    (3) The company revised prior period Consolidated Financial Statements to correct shadow unearned revenue liability balances associated with universal life insurance products.

    Ameriprise Financial, Inc.

    Consolidated Balance Sheets

    (in millions, unaudited)

    December 31,
    2022

     

    December 31,
    2021

     

     

     

     

    Assets

     

     

     

    Cash and cash equivalents

    $

    6,964

     

     

    $

    7,127

     

    Cash of consolidated investment entities

     

    133

     

     

     

    121

     

    Investments

     

    44,524

     

     

     

    35,810

     

    Investments of consolidated investment entities

     

    2,354

     

     

     

    2,184

     

    Separate account assets

     

    73,962

     

     

     

    97,491

     

    Receivables

     

    15,779

     

     

     

    16,205

     

    Receivables of consolidated investment entities

     

    20

     

     

     

    17

     

    Deferred acquisition costs

     

    3,160

     

     

     

    2,782

     

    Restricted and segregated cash and investments

     

    2,229

     

     

     

    2,795

     

    Other assets (1)

     

    9,341

     

     

     

    11,375

     

    Other assets of consolidated investment entities

     

    2

     

     

     

    3

     

    Total Assets

    $

    158,468

     

     

    $

    175,910

     

     

     

     

     

    Liabilities

     

     

     

    Policyholder account balances, future policy benefits and claims

    $

    36,067

     

     

    $

    35,750

     

    Separate account liabilities

     

    73,962

     

     

     

    97,491

     

    Customer deposits

     

    30,775

     

     

     

    20,227

     

    Short-term borrowings

     

    201

     

     

     

    200

     

    Long-term debt

     

    2,821

     

     

     

    2,832

     

    Debt of consolidated investment entities

     

    2,363

     

     

     

    2,164

     

    Accounts payable and accrued expenses

     

    2,242

     

     

     

    2,527

     

    Other liabilities (1)

     

    6,305

     

     

     

    8,641

     

    Other liabilities of consolidated investment entities

     

    119

     

     

     

    137

     

    Total Liabilities

     

    154,855

     

     

     

    169,969

     

     

     

     

     

    Equity

     

     

     

    Ameriprise Financial

     

     

     

    Common shares ($.01 par)

     

    3

     

     

     

    3

     

    Additional paid-in capital

     

    9,517

     

     

     

    9,220

     

    Retained earnings

     

    19,531

     

     

     

    17,525

     

    Treasury stock

     

    (23,089

    )

     

     

    (21,066

    )

    Accumulated other comprehensive income, net of tax (1)

     

    (2,349

    )

     

     

    259

     

    Total Equity

     

    3,613

     

     

     

    5,941

     

    Total Liabilities and Equity

    $

    158,468

     

     

    $

    175,910

     

     

     

     

     

    (1) The company revised prior period Consolidated Financial Statements to correct shadow unearned revenue liability balances associated with universal life insurance products.

    Ameriprise Financial, Inc.

    Reconciliation Table: Earnings

     

    Quarter Ended December 31,

     

    Per Diluted Share

    Quarter Ended

    December 31,

     

    % Over/

    (Under)

    (in millions, except per share amounts, unaudited)

    2022

     

    2021

     

    2022

     

    2021

     

    Net income

    $

    494

     

     

    $

    701

     

     

    $

    4.43

     

     

    $

    5.96

     

     

    (26)%

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

     

    (7

    )

     

     

    9

     

     

     

    (0.06

    )

     

     

    0.08

     

     

     

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

     

    360

     

     

     

    79

     

     

     

    3.24

     

     

     

    0.67

     

     

     

    Add: Mean reversion-related impacts (1)

     

    (31

    )

     

     

    (45

    )

     

     

    (0.28

    )

     

     

    (0.38

    )

     

     

    Add: Market impact of hedges on investments (1)

     

     

     

     

    (18

    )

     

     

     

     

     

    (0.15

    )

     

     

    Add: Integration/restructuring charges (1)

     

    15

     

     

     

    18

     

     

     

    0.13

     

     

     

    0.15

     

     

     

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

     

    (2

    )

     

     

    (2

    )

     

     

    (0.02

    )

     

     

    (0.02

    )

     

     

    Add: Tax effect of adjustments (2)

     

    (74

    )

     

     

    (5

    )

     

     

    (0.66

    )

     

     

    (0.04

    )

     

     

    Adjusted operating earnings

    $

    773

     

     

    $

    723

     

     

    $

    6.94

     

     

    $

    6.15

     

     

    13%

     

     

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding:

     

     

     

     

     

     

     

     

     

    Basic

     

    108.9

     

     

     

    114.6

     

     

     

     

     

     

     

    Diluted

     

    111.4

     

     

     

    117.6

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (1) Pretax adjusted operating adjustment.

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

    Ameriprise Financial, Inc.

    Reconciliation Table: Earnings

     

    Year-to-date

    December 31,

     

    Per Diluted Share

    Year-to-date

    December 31,

     

    % Over/

    (Under)

    (in millions, except per share amounts, unaudited)

    2022

     

    2021

     

    2022

     

    2021

     

    Net income

    $

    2,559

     

     

    $

    2,760

     

     

    $

    22.51

     

     

    $

    23.00

     

     

    (2)%

    Add: Basic to diluted share conversion

     

     

     

     

     

     

     

     

     

     

     

     

     

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

     

    (97

    )

     

     

    87

     

     

     

    (0.85

    )

     

     

    0.73

     

     

     

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

     

    (211

    )

     

     

    656

     

     

     

    (1.86

    )

     

     

    5.47

     

     

     

    Add: Mean reversion-related impacts (1)

     

    268

     

     

     

    (152

    )

     

     

    2.36

     

     

     

    (1.27

    )

     

     

    Add: Market impact of hedges on investments (1)

     

     

     

     

    22

     

     

     

     

     

     

    0.18

     

     

     

    Less: Block transfer reinsurance transaction impacts (1)

     

     

     

     

    521

     

     

     

     

     

     

    4.34

     

     

     

    Add: Integration/restructuring charges (1)

     

    50

     

     

     

    32

     

     

     

    0.44

     

     

     

    0.27

     

     

     

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

     

    (4

    )

     

     

    (3

    )

     

     

    (0.04

    )

     

     

    (0.03

    )

     

     

    Add: Tax effect of adjustments (2)

     

    (43

    )

     

     

    11

     

     

     

    (0.38

    )

     

     

    0.09

     

     

     

    Adjusted operating earnings

    $

    2,724

     

     

    $

    2,724

     

     

    $

    23.96

     

     

    $

    22.70

     

     

    6%

    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

    $

    2,858

     

     

    $

    2,730

     

     

    $

    25.14

     

     

    $

    22.75

     

     

    11%

     

     

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding:

     

     

     

     

     

     

     

     

     

    Basic

     

    111.3

     

     

     

    117.3

     

     

     

     

     

     

     

    Diluted

     

    113.7

     

     

     

    120.0

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (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 December 31,

     

    (in millions, unaudited)

    2022

     

    2021

     

    Total net revenues

    $

    3,617

     

     

    $

    3,760

     

     

    Less: Net realized investment gains (losses)

     

    (9

    )

     

     

    9

     

     

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

     

    (50

    )

     

     

    13

     

     

    Less: Mean Reversion related impacts

     

     

     

     

     

     

    Less: Market impact of hedges on investments

     

     

     

     

    18

     

     

    Less: Integration/restructuring charges

     

     

     

     

     

     

    Less: CIEs revenue

     

    31

     

     

     

    15

     

     

    Adjusted operating total net revenues

    $

    3,645

     

     

    $

    3,705

     

     

     

     

     

     

     

    Total expenses

    $

    2,998

     

     

    $

    2,894

     

     

    Less: CIEs expenses

     

    34

     

     

     

    18

     

     

    Less: Integration/restructuring charges

     

    15

     

     

     

    18

     

     

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

     

    310

     

     

     

    92

     

     

    Less: Mean reversion-related impacts

     

    (31

    )

     

     

    (45

    )

     

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

     

    (2

    )

     

     

     

     

    Adjusted operating expenses

    $

    2,672

     

     

    $

    2,811

     

     

     

     

     

     

     

    Pretax income

    $

    619

     

     

    $

    866

     

     

    Pretax adjusted operating earnings

    $

    973

     

     

    $

    894

     

     

     

     

     

     

     

    Pretax income margin

     

    17.1

     

    %

     

    23.0

     

    %

    Pretax adjusted operating margin

     

    26.7

     

    %

     

    24.1

     

    %

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Effective Tax Rate

     

    Quarter Ended

    December 31, 2021

     

    (in millions, unaudited)

    GAAP

     

    Adjusted Operating

    Pretax income

    $

    866

     

    $

    894

     

    Income tax provision

    $

    165

     

    $

    171

     

     

     

     

     

     

    Effective tax rate

     

    19.0

    %

     

    19.1

    %

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Effective Tax Rate

     

    Quarter Ended December 31, 2022

     

    (in millions, unaudited)

    GAAP

     

    Adjusted Operating

    Pretax income

    $

    619

     

    $

    973

     

    Income tax provision

    $

    125

     

    $

    200

     

     

     

     

     

     

    Effective tax rate

     

    20.3

    %

     

    20.6

    %

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Effective Tax Rate

     

    Year-to-date

    December 31, 2022

     

    (in millions, unaudited)

    GAAP

     

    Adjusted Operating

    Pretax income

    $

    3,182

     

    $

    3,391

     

    Income tax provision

    $

    623

     

    $

    667

     

     

     

     

     

     

    Effective tax rate

     

    19.6

    %

     

    19.7

    %

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Return on Equity (ROE) Excluding Accumulated

    Other Comprehensive Income “AOCI”

     

    Twelve Months Ended

    December 31,

     

    (in millions, unaudited)

    2022

    2021

    Net income

    $

    2,559

     

     

    $

    2,760

     

     

     

    Less: Adjustments (1)

     

    (165

    )

     

     

    36

     

     

     

    Adjusted operating earnings

     

    2,724

     

     

     

    2,724

     

     

     

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

     

    (134

    )

     

     

    (6

    )

     

     

    Adjusted operating earnings excluding Unlocking

    $

    2,858

     

     

    $

    2,730

     

     

     

     

     

     

     

     

     

    Total Ameriprise Financial, Inc. shareholders’ equity

    $

    4,453

     

     

    $

    5,944

     

     

     

    Less: Accumulated other comprehensive income, net of tax

     

    (1,487

    )

     

     

    556

     

     

     

    Total Ameriprise Financial, Inc. shareholders’ equity excluding AOCI

     

    5,940

     

     

     

    5,388

     

     

     

    Less: Equity impacts attributable to the consolidated investment entities

     

     

     

     

    2

     

     

     

    Adjusted operating equity

    $

    5,940

     

     

    $

    5,386

     

     

     

     

     

     

     

     

     

    Return on equity excluding AOCI

     

    43.1

     

    %

     

    51.2

     

    %

     

    Adjusted operating return on equity excluding AOCI (3)

     

    45.9

     

    %

     

    50.6

     

    %

     

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

     

    48.1

     

    %

     

    50.7

     

    %

     

     

     

     

     

     

     

    (1) Adjustments reflect the trailing twelve months’ sum of after-tax net realized investment gains/losses, net of deferred sales inducement costs (“DSIC”) and deferred acquisition costs (“DAC”) amortization, unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long-duration products, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; mean reversion related impacts; 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 January 25, 2023 by Ameriprise Financial, Inc..

    Categories: Industry Articles
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