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  • Ameriprise Financial Reports Third Quarter 2023 Results

    October 31, 2023 by Ameriprise Financial, Inc.

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

    Earnings Per Diluted Share

     

    Return on Equity, ex AOCI (1)

     

    Q3 2023

     

     

    Q3 2023

    GAAP

    $8.14

     

    GAAP

    44.4%

    Adjusted Operating

    $6.96

     

    Adjusted Operating

    48.4%

    Adjusted Operating ex Unlocking (2)

    $7.68

     

    Adjusted Operating ex Unlocking (2)

    49.6%

     

     

     

     

     

    • Third quarter adjusted operating earnings per diluted share excluding unlocking was $7.68, up 21 percent from the prior year, driven by the strength of the company’s diversified business model.

     

    Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer

     

     

    “Ameriprise delivered another strong quarter amid a challenging operating environment, demonstrating the strength and flexibility of our diversified business.

     

    Wealth Management remains our primary growth driver with good client flows and excellent client-advisor engagement. Complementing Wealth Management are our differentiated Retirement and Protection Solutions and global Asset Management businesses that are generating strong financial results.

     

    As a firm, our excellent capital management, consistent financial results and proven expense discipline position us well.”

     

    • Third quarter GAAP net income per diluted share was $8.14 compared to $9.41 a year ago, primarily from market impacts on the valuation of derivatives and market risk benefits, as well as unlocking.

     

    • Assets under management and administration reached $1.2 trillion, up 12 percent from strong client net inflows and market appreciation.

     

    • Adjusted operating net revenues increased 11 percent from organic growth, higher spread revenues and equity market appreciation.

     

    • General and administrative expense remained well managed, up 4 percent. The company made growth investments in attractive areas and continued to manage expenses tightly.

     

    • Pretax adjusted operating margin excluding unlocking reached a new high of 27 percent and adjusted operating ROE excluding unlocking was 50 percent.

     

    • Free cash flow remained approximately 90 percent of earnings, reflecting continued strong performance across market environments. Balance sheet fundamentals were strong with $1.4 billion of excess capital, $1.9 billion of holding company available liquidity, effective hedging and a high-quality, diversified investment portfolio.

     

    • Balance sheet strength and free cash flow generation enabled consistent capital return to shareholders. In the quarter, the company returned $663 million of capital to shareholders, which was approximately 80 percent of adjusted operating earnings excluding unlocking.

     

    • Ameriprise is expected to close on its partnership with Comerica Bank in November.

     

    (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.

     

    Ameriprise Financial, Inc.

    Third Quarter Summary

     

    Quarter Ended September 30,

    % Better/

    (Worse)

     

    Year-to-date

    September 30,

    % Better/

    (Worse)

    (in millions, except per share amounts, unaudited)

    2023

    2022

     

    2023

    2022

    GAAP net income

    $

    872

     

    $

    1,061

     

    (18)%

     

    $

    2,179

     

    $

    2,500

     

    (13)%

    Adjusted operating earnings

    $

    745

     

    $

    823

     

    (9)%

     

    $

    2,350

     

    $

    2,153

     

    9%

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

    $

    823

     

    $

    716

     

    15%

     

    $

    2,428

     

    $

    2,046

     

    19%

     

     

     

     

     

     

     

     

     

     

     

     

    GAAP net income per diluted share

    $

    8.14

     

    $

    9.41

     

    (13)%

     

    $

    20.08

     

    $

    21.85

     

    (8)%

    Adjusted operating earnings per diluted share

    $

    6.96

     

    $

    7.30

     

    (5)%

     

    $

    21.66

     

    $

    18.82

     

    15%

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

    $

    7.68

     

    $

    6.35

     

    21%

     

    $

    22.38

     

    $

    17.88

     

    25%

     

     

     

     

     

     

     

     

     

     

     

     

    GAAP Return on Equity, ex. AOCI

     

    44.4

    %

     

    55.7

    %

     

     

     

    44.4

    %

     

    55.7

    %

     

    Adjusted Operating Return on Equity, ex. AOCI

     

    48.4

    %

     

    49.9

    %

     

     

     

    48.4

    %

     

    49.9

    %

     

    Adjusted Operating Return on Equity, ex. AOCI and unlocking

    (see reconciliation on p. 30)

     

    49.6

    %

     

    48.0

    %

     

     

     

    49.6

    %

     

    48.0

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

    GAAP Equity, ex. AOCI

    $

    6,665

     

    $

    6,283

     

    6%

     

    $

    6,665

     

    $

    6,283

     

    6%

    Available Capital for Capital Adequacy

    (see reconciliation on p. 27)

    $

    5,247

     

    $

    5,259

     

     

    $

    5,247

     

    $

    5,259

     

     

     

     

     

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding:

     

     

     

     

     

     

     

     

     

     

     

    Basic

     

    104.9

     

     

    110.5

     

     

     

     

    106.4

     

     

    112.1

     

     

    Diluted

     

    107.1

     

     

    112.7

     

     

     

     

    108.5

     

     

    114.4

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Current quarter GAAP results included after-tax net realized investment losses of $30 million primarily from continued investment portfolio repositioning to capture the benefit of higher interest rates and $9 million of integration costs, primarily related to the acquisition of BMO EMEA. In October, the company accomplished a major milestone in the BMO integration with the completion of the order management system platform conversion.

    The company completed its annual actuarial assumption update in the quarter, which resulted in an unfavorable after-tax impact of $78 million or $0.72 per share. This was primarily related to updated persistency assumptions for variable annuities.

    Ameriprise Financial, Inc.

    Advice & Wealth Management Segment Adjusted Operating Results

     

    Quarter Ended September 30,

    % Better/

    (Worse)

    (in millions, unaudited)

    2023

    2022

    Adjusted operating net revenues

    $

    2,407

     

    $

    2,137

     

    13%

     

     

     

     

     

     

    Distribution expenses

     

    1,253

     

     

    1,149

     

    (9)%

    Interest and debt expense

     

    6

     

     

    3

     

    NM

    General and administrative expenses (1)

     

    419

     

     

    390

     

    (7)%

    Adjusted operating expenses

     

    1,678

     

     

    1,542

     

    (9)%

    Pretax adjusted operating earnings

    $

    729

     

    $

    595

     

    23%

     

     

     

     

     

     

    Pretax adjusted operating margin (1)

     

    30.3

    %

     

    27.8

    %

    250 bps

     

     

     

     

     

     

     

     

     

     

     

     

    (1) Excluding $20 million regulatory accrual, G&A was up 2 percent to $399 million and margin increased 330 basis points to 31.1 percent.

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

     

    Quarter Ended September 30,

    % Better/

    (Worse)

    (in billions, unless otherwise noted)

     

    2023

     

     

    2022

     

    Total client assets

    $

    816

     

    $

    711

     

    15%

    Total client net flows

    $

    8.9

     

    $

    11.2

     

    (20)%

    Wrap net flows

    $

    5.4

     

    $

    6.4

     

    (16)%

    AWM cash balances

    $

    40.5

     

    $

    46.3

     

    (13)%

    Adjusted operating net revenue per advisor (TTM in thousands)

    $

    901

     

    $

    819

     

    10%

     

     

     

     

     

     

    Advice & Wealth Management pretax adjusted operating earnings were strong at $729 million, up 23 percent. Results included a $20 million accrual for an industry-wide regulatory matter relating to electronic communication recordkeeping requirements. Excluding the accrual, pretax adjusted operating earnings increased 26 percent with a pretax adjusted operating margin of 31.1 percent.

    Adjusted operating net revenues increased 13 percent to $2.4 billion from continued growth in client assets in both wrap and brokerage accounts, as well as higher investment earnings from cash products, which is expected to remain a sustainable driver of revenue going forward.

    Adjusted operating expenses increased 9 percent to $1.7 billion compared to a year ago. Distribution expenses increased 9 percent. General and administrative expense was $419 million and included the regulatory accrual. Excluding the accrual, general and administrative expense was $399 million, up 2 percent and the company continues to expect mid-single-digit growth for the full year.

    The Wealth Management business delivered continued balanced profitable organic growth. Clients and advisors remained engaged and focused on positioning portfolios to meet financial planning goals through the market cycle. Clients remain heavily concentrated in yield-oriented products and have not begun putting cash back to work given the current environment.

    • Total client net flows were $9 billion in the quarter and were $43 billion over the past year.
    • Bank and certificate assets grew 37 percent year-over-year to $35 billion, and cash sorting slowed throughout the quarter.
    • Advisor headcount was 10,258, reflecting good advisor retention coupled with the addition of 64 experienced advisors in the quarter.
    • Adjusted operating net revenue per advisor on a trailing 12-month basis was $901,000, up 10 percent from enhanced productivity, business growth and market appreciation.

     

    Ameriprise Financial, Inc.

    Asset Management Segment Adjusted Operating Results

     

    Quarter Ended September 30,

    % Better/

    (Worse)

    (in millions, unaudited)

    2023

    2022

    Adjusted operating net revenues

    $

    826

     

    $

    823

     

     

     

     

     

     

     

    Distribution expenses

     

    234

     

     

    238

     

    2%

    Amortization of deferred acquisition costs

     

    1

     

     

    2

     

    50%

    Interest and debt expense

     

    2

     

     

    1

     

    NM

    General and administrative expenses

     

    390

     

     

    391

     

    Adjusted operating expenses

     

    627

     

     

    632

     

    1%

    Pretax adjusted operating earnings

    $

    199

     

    $

    191

     

    4%

     

     

     

     

     

     

    Net pretax adjusted operating margin (1)

     

    35.7

    %

     

    35.6

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Quarter Ended September 30,

    % Better/

    (Worse)

    (in billions)

    2023

    2022

    Total segment AUM

    $

    587

     

    $

    546

     

    7%

     

     

     

     

     

     

    Net Flows

     

     

     

     

     

    Global Retail net flows, ex. legacy insurance partners flows

    $

    (3.8)

     

    $

    (5.3)

     

    27%

    Global Institutional net flows, ex. legacy insurance partners flows

     

    0.5

     

     

    3.9

     

    (89)%

    Legacy insurance partners flows

     

    (0.9)

     

     

    (1.0)

     

    10%

    Total segment net flows

    $

    (4.2)

     

    $

    (2.4)

     

    (77)%

     

     

     

     

     

     

    Model delivery AUA Flows (2)

    $

    0.2

     

    $

    (0.5)

     

    NM

     

     

     

     

     

     

    (1) See reconciliation on page 12.

     

     

     

     

     

    (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 adjusted operating net revenues were $826 million and pretax adjusted operating earnings were $199 million, up 4 percent in a challenging environment. Financial results reflected equity market appreciation, disciplined expense management and $7 million of favorable timing-related items, which more than offset the cumulative impact of net outflows. Net pretax adjusted operating margin was 36 percent and above the company’s targeted range of 31 to 35 percent.

    Adjusted operating expenses decreased 1 percent, with general and administrative expenses down $1 million. The company has begun implementing more comprehensive expense management initiatives in light of the environment and its objective to improve the margin. Excluding the impact of foreign exchange translation, general and administrative expenses were down 3 percent.

    Total assets under management increased 7 percent to $587 billion as equity market appreciation and foreign exchange translation were partially offset by net outflows. The fee rate remained stable on a sequential basis. Long term 3-, 5- and 10-year investment performance remained strong and there was notable improvement in 1-year fixed income performance.

    In the quarter, net outflows were $4.2 billion reflecting the challenging market environment. Flows included $0.9 billion of outflows related to legacy insurance partners.

    • Retail net outflows were $3.8 billion reflecting continued weak gross sales consistent with the industry that were partially offset by a significant improvement in redemptions.
    • Global institutional inflows were $0.5 billion with fundings primarily in liability-driven investment and emerging market equity mandates.

     

    Ameriprise Financial, Inc.

    Retirement & Protection Solutions Segment Adjusted Operating Results

     

    Quarter Ended September 30,

    % Better/

    (Worse)

    (in millions, unaudited)

     

    2023

     

     

     

    2022

     

    Adjusted operating net revenues

    $

    876

     

     

    $

    783

     

    12%

    Adjusted operating expenses

     

    776

     

     

     

    458

     

    (69)%

    Pretax adjusted operating earnings (including unlocking)

    $

    100

     

     

    $

    325

     

    (69)%

    Unlocking

     

    (104

    )

     

     

    128

     

    NM

    Pretax adjusted operating earnings excluding unlocking

    $

    204

     

     

    $

    197

     

    4%

     

     

     

     

     

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

    Retirement & Protection Solutions pretax adjusted operating earnings excluding unlocking were $204 million versus $197 million last year, with strong sales growth. The business continued to generate strong free cash flow and a high return on capital.

    Retirement & Protection Solutions sales improved in the quarter, with protection sales up 22 percent to $79 million primarily in higher-margin VUL products. Variable annuity sales grew 18 percent to $1.1 billion with the majority of sales in structured variable annuities.

     

    Ameriprise Financial, Inc.

    Corporate & Other Segment Adjusted Operating Results

     

    Quarter Ended September 30,

    % Better/

    (Worse)

    (in millions, unaudited)

     

    2023

     

     

     

    2022

     

    Corporate & Other

    $

    (74

    )

     

    $

    (73

    )

    (1)%

    Closed Blocks (1)

     

    2

     

     

     

    (5

    )

    NM

    Pretax adjusted operating earnings

    $

    (72

    )

     

    $

    (78

    )

    8%

    Unlocking

     

    5

     

     

     

    7

     

    (29)%

    Pretax adjusted operating earnings excluding unlocking

    $

    (77

    )

     

    $

    (85

    )

    9%

     

     

     

     

     

    Long Term Care excluding unlocking

    $

    5

     

     

    $

    (6

    )

    NM

    Fixed Annuities excluding unlocking

     

    (8

    )

     

     

    (6

    )

    (33)%

    Pretax adjusted operating earnings excluding unlocking

    $

    (3

    )

     

    $

    (12

    )

    75%

     

     

     

     

     

    (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 $72 million.

    Corporate & Other, excluding Closed Blocks, pretax adjusted operating loss was $74 million, which was in line with the prior year period. The loss included $7 million of severance expense related to the company’s expense management initiatives and are designed to improve operating efficiency and effectiveness, which commenced in the quarter.

    Long Term Care pretax adjusted operating earnings excluding unlocking were in line with expectations at $5 million.

    Fixed Annuities pretax adjusted operating loss was in line with expectations at $8 million.

    Taxes

    The operating effective tax rate increased to 22.1 percent for the third quarter and 20.5 percent on a year-to-date basis. Excluding the impact from the regulatory accrual, the operating effective tax rate in the quarter was 21.6 percent. The effective tax rate is expected to be at the higher end of the 20 to 21 percent range 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 over 10,000 financial advisors, we have the strength and expertise to serve the full range of individual and institutional investors’ financial needs. For more information, or to find an Ameriprise financial advisor, visit ameriprise.com.

    Ameriprise Financial Services, LLC offers financial planning services, investments, insurance and annuity products. Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA and managed by Columbia Management Investment Advisers, LLC. Threadneedle International Limited, Columbia Threadneedle Asset Managers Limited, Columbia Threadneedle (EM) Investments Limited, and Pyrford International Ltd, are SEC- and FCA-registered investment adviser affiliates of Columbia Management Investment Advisers, LLC based in the U.K. RiverSource insurance and annuity products are issued by RiverSource Life Insurance Company, and in New York only by RiverSource Life Insurance Co. of New York, Albany, New York. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuity products in the state of New York. These companies are part of Ameriprise Financial, Inc. CA License #0684538. RiverSource Distributors, Inc. (Distributor), Member FINRA.

    Non-GAAP Financial Measures

    The company believes the presentation of adjusted operating measures, available capital for capital adequacy and other non-GAAP financial measures, and the corresponding ratios, best represents the underlying performance of our core operations and facilitates a more meaningful trend analysis without the distortion of various adjustment items. Management uses non-GAAP financial measures to evaluate our financial performance on a basis comparable to that used by some securities analysts and investors and to provide a valuable perspective for investors. These non-GAAP financial measures are taken into consideration, to varying degrees, for purposes of business planning and analysis and for certain compensation-related matters. Non-GAAP financial measures are intended to supplement investors’ understanding of our performance and should not be considered alternatives for financial measures presented in accordance with GAAP. These measures are discussed in more detail below and may not be comparable to other companies’ similarly titled non-GAAP financial measures. Non-GAAP financial measure reconciliations can be found on the subsequent pages.

    Forward-Looking Statements

    This news release contains forward-looking statements that reflect management’s plans, estimates and beliefs. Actual results could differ materially from those described in these forward-looking statements. Examples of such forward-looking statements include:

    • statements of the company’s plans, intentions, positioning, expectations, objectives or goals, including those relating to asset flows, mass affluent and affluent client acquisition strategy, client retention and growth of our client base, financial advisor productivity, retention, recruiting and enrollments, the introduction, cessation, terms or pricing of new or existing products and services, acquisition integration, general and administrative costs, net pretax adjusted operating margin, consolidated tax rate, return of capital to shareholders, and excess capital position and financial flexibility to capture additional growth opportunities;
    • other statements about future economic performance, the performance of equity markets and interest rate variations and the economic performance of the United States and of global markets;
    • statements about the closing date of the partnership with Comerica;
    • statements about higher investment earnings from cash product being a sustainable driver of revenue going forward;
    • statements regarding general and administrative expenses in Advice & Wealth Management;
    • statements estimating full year 2023 operating effective tax rate; and
    • statements of assumptions underlying such statements.

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

    Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Management cautions readers to carefully consider the risks described in the “Risk Factors” discussion under Part 1, Item 1A of and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2022 available at ir.ameriprise.com. Management undertakes no obligation to update publicly or revise any forward-looking statements.

    The financial results discussed in this news release represent past performance only, which may not be used to predict or project future results. The financial results and values presented in this news release are based upon asset valuations that represent estimates as of the date of this news release and may be revised in the company’s Form 10-Q for the period ended September 30, 2023.

    Ameriprise Financial announces financial and other information to investors through the company’s investor relations website at ir.ameriprise.com, as well as SEC filings, press releases, public conference calls and webcasts. Investors and others interested in the company are encouraged to visit the investor relations website from time to time, as information is updated and new information is posted. The website also allows users to sign up for automatic notifications in the event new materials are posted. The information found on the website is not incorporated by reference into this release or in any other report or document the company furnishes or files with the SEC.

     

    Ameriprise Financial, Inc.

    Consolidated GAAP Results

    (in millions, except per share amounts, unaudited)

    3 Qtr 2023

     

    3 Qtr 2022

    % Better/

    (Worse)

    2 Qtr 2023

    % Better/

    (Worse)

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

    2,287

     

     

    $

    2,172

     

    5%

    $

    2,199

     

    4%

    Distribution fees

     

    463

     

     

     

    506

     

    (8)%

     

    482

     

    (4)%

    Net investment income

     

    809

     

     

     

    349

     

    NM

     

    811

     

    Premiums, policy and contract charges

     

    390

     

     

     

    354

     

    10%

     

    383

     

    2%

    Other revenues

     

    127

     

     

     

    118

     

    8%

     

    132

     

    (4)%

    Total revenues

     

    4,076

     

     

     

    3,499

     

    16%

     

    4,007

     

    2%

    Banking and deposit interest expense

     

    151

     

     

     

    15

     

    NM

     

    131

     

    (15)%

    Total net revenues

     

    3,925

     

     

     

    3,484

     

    13%

     

    3,876

     

    1%

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

     

    1,297

     

     

     

    1,198

     

    (8)%

     

    1,248

     

    (4)%

    Interest credited to fixed accounts

     

    139

     

     

     

    157

     

    11%

     

    161

     

    14%

    Benefits, claims, losses and settlement expenses

     

    120

     

     

     

    81

     

    (48)%

     

    327

     

    63%

    Remeasurement (gains) losses of future policy benefit reserves

     

    (12

    )

     

     

    (1

    )

    NM

     

     

    Change in fair value of market risk benefits

     

    168

     

     

     

    (321

    )

    NM

     

    (99

    )

    NM

    Amortization of deferred acquisition costs

     

    62

     

     

     

    58

     

    (7)%

     

    61

     

    (2)%

    Interest and debt expense

     

    84

     

     

     

    52

     

    (62)%

     

    84

     

    General and administrative expense

     

    950

     

     

     

    925

     

    (3)%

     

    967

     

    2%

    Total expenses

     

    2,808

     

     

     

    2,149

     

    (31)%

     

    2,749

     

    (2)%

    Pretax income

     

    1,117

     

     

     

    1,335

     

    (16)%

     

    1,127

     

    (1)%

    Income tax provision

     

    245

     

     

     

    274

     

    11%

     

    237

     

    (3)%

    Net income

    $

    872

     

     

    $

    1,061

     

    (18)%

    $

    890

     

    (2)%

     

     

     

     

     

     

     

    Earnings per share

     

     

     

     

     

     

    Basic earnings per share

    $

    8.31

     

     

    $

    9.60

     

     

    $

    8.36

     

     

    Earnings per diluted share

    $

    8.14

     

     

    $

    9.41

     

     

    $

    8.21

     

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding

     

     

     

     

     

     

    Basic

     

    104.9

     

     

     

    110.5

     

     

     

    106.4

     

     

    Diluted

     

    107.1

     

     

     

    112.7

     

     

     

    108.4

     

     

     

     

     

     

     

     

     

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

     

    Ameriprise Financial, Inc.

    Consolidated Highlights and Capital Summary

    (in millions unless otherwise noted, unaudited)

    3 Qtr 2023

     

    3 Qtr 2022

    % Better/

    (Worse)

    2 Qtr 2023

    % Better/

    (Worse)

     

     

     

     

     

     

     

    Assets Under Management and Administration

     

     

     

     

     

     

    Advice & Wealth Management AUM

    $

    440,703

     

     

    $

    382,364

     

    15%

    $

    451,249

     

    (2)%

    Asset Management AUM

     

    587,171

     

     

     

    546,493

     

    7%

     

    616,598

     

    (5)%

    Corporate AUM

     

    349

     

     

     

    170

     

    NM

     

    297

     

    18%

    Eliminations

     

    (37,795

    )

     

     

    (35,494

    )

    (6)%

     

    (39,308

    )

    4%

    Total Assets Under Management

     

    990,428

     

     

     

    893,533

     

    11%

     

    1,028,836

     

    (4)%

    Total Assets Under Administration

     

    242,336

     

     

     

    207,965

     

    17%

     

    247,952

     

    (2)%

    Total AUM and AUA

    $

    1,232,764

     

     

    $

    1,101,498

     

    12%

    $

    1,276,788

     

    (3)%

     

     

     

     

     

     

     

    S&P 500

     

     

     

     

     

     

    Daily average

     

    4,456

     

     

     

    3,983

     

    12%

     

    4,207

     

    6%

    Period end

     

    4,288

     

     

     

    3,586

     

    20%

     

    4,450

     

    (4)%

     

     

     

     

     

     

     

    Weighted Equity Index (WEI) (1)

     

     

     

     

     

     

    Daily average

     

    2,903

     

     

     

    2,606

     

    11%

     

    2,769

     

    5%

    Period end

     

    2,788

     

     

     

    2,347

     

    19%

     

    2,900

     

    (4)%

     

     

     

     

     

     

     

    Common shares

     

     

     

     

     

     

    Beginning balance

     

    102.8

     

     

     

    108.4

     

    (5)%

     

    104.4

     

    (2)%

    Repurchases

     

    (1.5

    )

     

     

    (1.8

    )

    17%

     

    (1.6

    )

    6%

    Issuances

     

    0.3

     

     

     

    0.1

     

    NM

     

     

    Other

     

    (0.2

    )

     

     

     

     

     

    Total common shares outstanding

     

    101.4

     

     

     

    106.7

     

    (5)%

     

    102.8

     

    (1)%

    Restricted stock units

     

    2.6

     

     

     

    2.8

     

    (7)%

     

    2.7

     

    (4)%

    Total basic common shares outstanding

     

    104.0

     

     

     

    109.5

     

    (5)%

     

    105.5

     

    (1)%

    Total potentially dilutive shares

     

    2.2

     

     

     

    2.3

     

    (4)%

     

    2.1

     

    5%

    Total diluted shares

     

    106.2

     

     

     

    111.8

     

    (5)%

     

    107.6

     

    (1)%

     

     

     

     

     

     

     

    Capital Returned to Shareholders

     

     

     

     

     

     

    Dividends paid

    $

    143

     

     

    $

    140

     

    2%

    $

    146

     

    (2)%

    Common stock share repurchases

     

    520

     

     

     

    492

     

    6%

     

    492

     

    6%

    Total Capital Returned to Shareholders

    $

    663

     

     

    $

    632

     

    5%

    $

    638

     

    4%

     

     

     

     

     

     

     

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

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

     

    Ameriprise Financial, Inc.

    Advice & Wealth Management Segment Adjusted Operating Results

    (in millions, unaudited)

    3 Qtr 2023

    3 Qtr 2022

    % Better/

    (Worse)

    2 Qtr 2023

    % Better/

    (Worse)

     

     

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

     

     

    Management and financial advice fees:

     

     

     

     

     

     

     

     

    Advisory fees

    $

    1,228

     

    $

    1,107

     

    11%

    $

    1,154

     

    6%

    Financial planning fees

     

    102

     

     

    97

     

    5%

     

    104

     

    (2)%

    Transaction and other fees

     

    94

     

     

    93

     

    1%

     

    96

     

    (2)%

    Total management and financial advice fees

     

    1,424

     

     

    1,297

     

    10%

     

    1,354

     

    5%

    Distribution fees:

     

     

     

     

     

     

     

     

    Mutual funds

     

    184

     

     

    180

     

    2%

     

    179

     

    3%

    Insurance and annuity

     

    226

     

     

    205

     

    10%

     

    222

     

    2%

    Off-Balance sheet brokerage cash

     

    58

     

     

    110

     

    (47)%

     

    84

     

    (31)%

    Other products

     

    84

     

     

    84

     

     

    84

     

    Total distribution fees

     

    552

     

     

    579

     

    (5)%

     

    569

     

    (3)%

    Net investment income

     

    517

     

     

    219

     

    NM

     

    483

     

    7%

    Other revenues

     

    65

     

     

    57

     

    14%

     

    68

     

    (4)%

    Total revenues

     

    2,558

     

     

    2,152

     

    19%

     

    2,474

     

    3%

    Banking and deposit interest expense

     

    151

     

     

    15

     

    NM

     

    131

     

    (15)%

    Adjusted operating total net revenues

     

    2,407

     

     

    2,137

     

    13%

     

    2,343

     

    3%

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

     

     

    Distribution expenses

     

    1,253

     

     

    1,149

     

    (9)%

     

    1,196

     

    (5)%

    Interest and debt expense

     

    6

     

     

    3

     

    NM

     

    6

     

    General and administrative expense

     

    419

     

     

    390

     

    (7)%

     

    410

     

    (2)%

    Adjusted operating expenses

     

    1,678

     

     

    1,542

     

    (9)%

     

    1,612

     

    (4)%

    Pretax adjusted operating earnings

    $

    729

     

    $

    595

     

    23%

    $

    731

     

     

     

     

     

     

     

     

     

     

    Pretax adjusted operating margin

     

    30.3

    %

     

    27.8

    %

     

     

    31.2

    %

     

     

     

     

     

     

     

     

     

     

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

     

    Ameriprise Financial, Inc.

    Advice & Wealth Management Segment Operating Metrics

    (in millions unless otherwise noted, unaudited)

    3 Qtr 2023

    3 Qtr 2022

    % Better/

    (Worse)

    2 Qtr 2023

    % Better/

    (Worse)

     

     

     

     

     

     

     

     

     

    AWM Total Client Assets

    $

    816,019

     

     

    $

    711,428

     

     

    15%

    $

    833,347

     

    (2)%

     

     

     

     

     

     

     

     

     

    Total Client Flows

    $

    8,901

     

     

    $

    11,164

     

     

    (20)%

    $

    9,408

     

    (5)%

     

     

     

     

     

     

     

     

     

    Total Wrap Accounts

     

     

     

     

     

     

     

     

    Beginning assets

    $

    454,689

     

     

    $

    399,287

     

     

    14%

    $

    434,674

     

    5%

    Net flows

     

    5,391

     

     

     

    6,449

     

     

    (16)%

     

    5,610

     

    (4)%

    Market appreciation (depreciation) and other

     

    (16,019

    )

     

     

    (20,526

    )

     

    22%

     

    14,405

     

    NM

    Total wrap ending assets

    $

    444,061

     

     

    $

    385,210

     

     

    15%

    $

    454,689

     

    (2)%

     

     

     

     

     

     

     

     

     

    Advisory wrap account assets ending balance (1)

    $

    439,341

     

     

    $

    381,136

     

     

    15%

    $

    449,857

     

    (2)%

     

     

     

     

     

     

     

     

     

    Brokerage Cash & Certificates Balances

     

     

     

     

     

     

     

     

    On-balance sheet (Net Investment Income)

     

     

     

     

     

     

     

     

    On-balance sheet – broker dealer

    $

    2,554

     

     

    $

    3,345

     

     

    (24)%

    $

    2,605

     

    (2)%

    On-balance sheet – bank

     

    20,970

     

     

     

    18,594

     

     

    13%

     

    20,933

     

    On-balance sheet – certificate

     

    12,612

     

     

     

    6,202

     

     

    NM

     

    12,069

     

    4%

    Total on-balance sheet

    $

    36,136

     

     

    $

    28,141

     

     

    28%

    $

    35,607

     

    1%

    Off-balance sheet (Distribution Fees)

     

     

     

     

     

     

     

     

    Off-balance sheet – broker dealer

    $

    4,347

     

     

    $

    18,155

     

     

    (76)%

    $

    6,413

     

    (32)%

    Total brokerage cash & certificates balances

    $

    40,483

     

     

    $

    46,296

     

     

    (13)%

    $

    42,020

     

    (4)%

     

     

     

     

     

     

     

     

     

    Gross Fee Yield

     

     

     

     

     

     

     

     

    On-balance sheet – broker dealer

     

    5.30

     

    %

     

    1.74

     

    %

     

     

    4.72

    %

     

    On-balance sheet – bank

     

    4.97

     

    %

     

    2.98

     

    %

     

     

    4.76

    %

     

    On-balance sheet – certificates

     

    5.40

     

    %

     

    2.75

     

    %

     

     

    5.20

    %

     

    Off-balance sheet – broker dealer

     

    4.28

     

    %

     

    2.13

     

    %

     

     

    4.14

    %

     

     

     

     

     

     

     

     

     

     

    Financial Advisors

     

     

     

     

     

     

     

     

    Employee advisors

     

    2,104

     

     

     

    2,089

     

     

    1%

     

    2,108

     

    Franchisee advisors

     

    8,154

     

     

     

    8,193

     

     

     

    8,166

     

    Total financial advisors

     

    10,258

     

     

     

    10,282

     

     

     

    10,274

     

     

     

     

     

     

     

     

     

     

    Advisor Retention

     

     

     

     

     

     

     

     

    Employee

     

    92.2

     

    %

     

    91.9

     

    %

     

     

    92.0

    %

     

    Franchisee

     

    92.8

     

    %

     

    94.4

     

    %

     

     

    93.0

    %

     

     

     

     

     

     

     

     

     

     

    (1) Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts. Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.

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

     

    Ameriprise Financial, Inc.

    Asset Management Segment Adjusted Operating Results

    (in millions, unaudited)

    3 Qtr 2023

    3 Qtr 2022

    % Better/

    (Worse)

    2 Qtr 2023

    % Better/

    (Worse)

     

     

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

     

     

    Management and financial advice fees:

     

     

     

     

     

     

     

     

    Asset management fees:

     

     

     

     

     

     

     

     

    Retail

    $

    499

     

     

    $

    509

     

     

    (2)%

    $

    490

     

     

    2%

    Institutional

     

    165

     

     

     

    159

     

     

    4%

     

    157

     

     

    5%

    Transaction and other fees

     

    50

     

     

     

    51

     

     

    (2)%

     

    48

     

     

    4%

    Revenue from other sources (1)

     

    3

     

     

     

    4

     

     

    (25)%

     

    4

     

     

    (25)%

    Total management and financial advice fees

     

    717

     

     

     

    723

     

     

    (1)%

     

    699

     

     

    3%

    Distribution fees:

     

     

     

     

     

     

     

     

    Mutual funds

     

    53

     

     

     

    56

     

     

    (5)%

     

    51

     

     

    4%

    Insurance and annuity

     

    39

     

     

     

    40

     

     

    (3)%

     

    39

     

     

    Total distribution fees

     

    92

     

     

     

    96

     

     

    (4)%

     

    90

     

     

    2%

    Net investment income

     

    10

     

     

     

    2

     

     

    NM

     

    10

     

     

    Other revenues

     

    7

     

     

     

    2

     

     

    NM

     

    9

     

     

    (22)%

    Total revenues

     

    826

     

     

     

    823

     

     

     

    808

     

     

    2%

    Banking and deposit interest expense

     

     

     

     

     

     

     

     

     

    Adjusted operating total net revenues

     

    826

     

     

     

    823

     

     

     

    808

     

     

    2%

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

     

     

    Distribution expenses

     

    234

     

     

     

    238

     

     

    2%

     

    233

     

     

    Amortization of deferred acquisition costs

     

    1

     

     

     

    2

     

     

    50%

     

    2

     

     

    50%

    Interest and debt expense

     

    2

     

     

     

    1

     

     

    NM

     

    1

     

     

    NM

    General and administrative expense

     

    390

     

     

     

    391

     

     

     

    410

     

     

    5%

    Adjusted operating expenses

     

    627

     

     

     

    632

     

     

    1%

     

    646

     

     

    3%

    Pretax adjusted operating earnings

    $

    199

     

     

    $

    191

     

     

    4%

    $

    162

     

     

    23%

     

     

     

     

     

     

     

     

     

    Net Pretax Adjusted Operating Margin Reconciliation

     

     

     

     

     

     

     

    Adjusted operating total net revenues

    $

    826

     

     

    $

    823

     

     

    $

    808

     

     

    2%

    Distribution pass through revenues

     

    (186

    )

     

     

    (187

    )

     

    1%

     

    (183

    )

     

    (2)%

    Subadvisory and other pass through revenues

     

    (96

    )

     

     

    (91

    )

     

    (5)%

     

    (95

    )

     

    (1)%

    Net adjusted operating revenues

    $

    544

     

     

    $

    545

     

     

    $

    530

     

     

    3%

     

     

     

     

     

     

     

     

     

    Pretax adjusted operating earnings

    $

    199

     

     

    $

    191

     

     

    4%

    $

    162

     

     

    23%

    Adjusted operating net investment income

     

    (10

    )

     

     

    (2

    )

     

    NM

     

    (10

    )

     

    Amortization of intangibles

     

    5

     

     

     

    5

     

     

     

    6

     

     

    (17)%

    Net adjusted operating earnings

    $

    194

     

     

    $

    194

     

     

    $

    158

     

     

    23%

     

     

     

     

     

     

     

     

     

    Pretax adjusted operating margin

     

    24.1

     

    %

     

    23.2

     

    %

     

     

    20.0

     

    %

     

    Net pretax adjusted operating margin (2)

     

    35.7

     

    %

     

    35.6

     

    %

     

     

    29.8

     

    %

     

     

     

     

     

     

     

     

     

     

    Performance fees (3)

     

     

     

     

     

     

     

     

    Performance fees

    $

    7

     

     

    $

    1

     

     

    NM

    $

    1

     

     

    NM

    General and administrative expense related to performance fees

     

    1

     

     

     

     

     

     

    1

     

     

    Net performance fees

    $

    6

     

     

    $

    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)

    3 Qtr 2023

    3 Qtr 2022

    % Better/

    (Worse)

    2 Qtr 2023

    % Better/

    (Worse)

     

     

     

     

     

     

     

     

     

    Managed Assets Rollforward

     

     

     

     

     

     

     

     

    Global Retail Funds

     

     

     

     

     

     

     

     

    Beginning assets

    $

    327,420

     

     

    $

    322,938

     

     

    1%

    $

    321,391

     

     

    2%

    Inflows

     

    11,223

     

     

     

    11,715

     

     

    (4)%

     

    11,547

     

     

    (3)%

    Outflows

     

    (15,166

    )

     

     

    (17,642

    )

     

    14%

     

    (16,323

    )

     

    7%

    Net VP/VIT fund flows

     

    (1,216

    )

     

     

    (999

    )

     

    (22)%

     

    (1,270

    )

     

    4%

    Net new flows

     

    (5,159

    )

     

     

    (6,926

    )

     

    26%

     

    (6,046

    )

     

    15%

    Reinvested dividends

     

    1,320

     

     

     

    1,647

     

     

    (20)%

     

    1,265

     

     

    4%

    Net flows

     

    (3,839

    )

     

     

    (5,279

    )

     

    27%

     

    (4,781

    )

     

    20%

    Distributions

     

    (1,514

    )

     

     

    (1,861

    )

     

    19%

     

    (1,544

    )

     

    2%

    Market appreciation (depreciation) and other

     

    (8,478

    )

     

     

    (15,281

    )

     

    45%

     

    9,885

     

     

    NM

    Foreign currency translation (1)

     

    (3,419

    )

     

     

    (4,314

    )

     

    21%

     

    2,469

     

     

    NM

    Total ending assets

     

    310,170

     

     

     

    296,203

     

     

    5%

     

    327,420

     

     

    (5)%

    % of total retail assets sub-advised

     

    16.0

     

    %

     

    15.7

     

    %

     

     

    15.9

     

    %

     

     

     

     

     

     

     

     

     

     

    Global Institutional

     

     

     

     

     

     

     

     

    Beginning assets

     

    289,178

     

     

     

    275,212

     

     

    5%

     

    286,288

     

     

    1%

    Inflows (2)

     

    8,404

     

     

     

    14,932

     

     

    (44)%

     

    11,708

     

     

    (28)%

    Outflows (2)

     

    (8,809

    )

     

     

    (12,056

    )

     

    27%

     

    (12,180

    )

     

    28%

    Net flows

     

    (405

    )

     

     

    2,876

     

     

    NM

     

    (472

    )

     

    14%

    Market appreciation (depreciation) and other (3)

     

    (4,607

    )

     

     

    (17,785

    )

     

    74%

     

    (1,852

    )

     

    NM

    Foreign currency translation (1)

     

    (7,165

    )

     

     

    (10,013

    )

     

    28%

     

    5,214

     

     

    NM

    Total ending assets

     

    277,001

     

     

     

    250,290

     

     

    11%

     

    289,178

     

     

    (4)%

     

     

     

     

     

     

     

     

     

    Total managed assets

    $

    587,171

     

     

    $

    546,493

     

     

    7%

    $

    616,598

     

     

    (5)%

     

     

     

     

     

     

     

     

     

    Total net flows

    $

    (4,244

    )

     

    $

    (2,403

    )

     

    (77)%

    $

    (5,253

    )

     

    19%

     

     

     

     

     

     

     

     

     

    Legacy insurance partners flows

    $

    (950

    )

     

    $

    (1,053

    )

     

    10%

    $

    (1,377

    )

     

    31%

     

     

     

     

     

     

     

     

     

    Total Assets Under Advisement (4)

    $

    26,756

     

     

    $

    22,313

     

     

    20%

    $

    25,282

     

     

    6%

    Model delivery AUA flows (5)

    $

    213

     

     

    $

    (542

    )

     

    NM

    $

    488

     

     

    (56)%

     

     

     

     

     

     

     

     

     

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

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

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

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

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

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

     

    Ameriprise Financial, Inc.

    Asset Management Segment Operating Metrics

    (in millions, unaudited)

    3 Qtr 2023

    3 Qtr 2022

    % Better/

    (Worse)

    2 Qtr 2023

    % Better/

    (Worse)

     

     

     

     

     

     

     

     

     

    Total Managed Assets by Type

     

     

     

     

     

     

     

     

    Equity

    $

    299,078

     

    $

    278,446

     

    7%

    $

    316,092

     

    (5)%

    Fixed income

     

    214,839

     

     

    194,643

     

    10%

     

    225,520

     

    (5)%

    Money market

     

    22,719

     

     

    21,261

     

    7%

     

    22,439

     

    1%

    Alternative

     

    33,602

     

     

    35,238

     

    (5)%

     

    35,088

     

    (4)%

    Hybrid and other

     

    16,933

     

     

    16,905

     

     

    17,459

     

    (3)%

    Total managed assets by type

    $

    587,171

     

    $

    546,493

     

    7%

    $

    616,598

     

    (5)%

     

     

     

     

     

     

     

     

     

    Average Managed Assets by Type (1)

     

     

     

     

     

     

     

     

    Equity

    $

    313,909

     

    $

    305,078

     

    3%

    $

    309,576

     

    1%

    Fixed income

     

    222,745

     

     

    214,305

     

    4%

     

    223,766

     

    Money market

     

    22,583

     

     

    18,499

     

    22%

     

    22,945

     

    (2)%

    Alternative

     

    34,797

     

     

    36,962

     

    (6)%

     

    34,888

     

    Hybrid and other

     

    17,533

     

     

    18,417

     

    (5)%

     

    17,152

     

    2%

    Total average managed assets by type

    $

    611,567

     

    $

    593,261

     

    3%

    $

    608,327

     

    1%

     

     

     

     

     

     

     

     

     

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

     

    Ameriprise Financial, Inc.

    Asset Management Segment Performance Metrics

     

    3 Qtr 2023

     

     

     

     

     

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

    1 year

    3 year

    5 year

    10 year

    Equity

    66%

    72%

    77%

    87%

    Fixed Income

    64%

    61%

    74%

    85%

    Asset Allocation

    69%

    52%

    74%

    90%

     

     

     

     

     

    4- or 5-star Morningstar rated funds

    Overall

    3 year

    5 year

    10 year

    Number of Rated Funds

    112

    74

    94

    97

     

     

     

     

     

    Retail Fund performance rankings for each fund are measured on a consistent basis against the most appropriate peer group or index. Peer groupings of Columbia funds are defined by Lipper category and are based on the Primary Share Class (i.e., Institutional if available, otherwise Advisor or Instl3 share class), net of fees. Peer groupings of Threadneedle funds are defined by either IA or Morningstar index and are 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 09/30/23. Columbia funds are available for purchase by U.S. customers. Out of 99 Columbia funds rated (based on primary share class), 9 received a 5-star Overall Rating and 31 received a 4-star Overall Rating. Out of 150 Threadneedle funds rated (based on highest-rated share class), 17 received a 5-star Overall Rating and 55 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.

     

    © 2023 Morningstar. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. 

     

     

     

     

     

     

    Ameriprise Financial, Inc.

    Retirement & Protection Solutions Segment Adjusted Operating Results

    (in millions, unaudited)

    3 Qtr 2023

     

    3 Qtr 2022

    % Better/

    (Worse)

    2 Qtr 2023

    % Better/

    (Worse)

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

    186

     

     

    $

    189

     

    (2)%

    $

    185

     

    1%

    Distribution fees

     

    101

     

     

     

    101

     

     

    100

     

    1%

    Net investment income

     

    215

     

     

     

    151

     

    42%

     

    203

     

    6%

    Premiums, policy and contract charges

     

    372

     

     

     

    339

     

    10%

     

    368

     

    1%

    Other revenues

     

    2

     

     

     

    3

     

    (33)%

     

    2

     

    Total revenues

     

    876

     

     

     

    783

     

    12%

     

    858

     

    2%

    Banking and deposit interest expense

     

     

     

     

     

     

     

    Adjusted operating total net revenues

     

    876

     

     

     

    783

     

    12%

     

    858

     

    2%

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

     

    117

     

     

     

    106

     

    (10)%

     

    120

     

    3%

    Interest credited to fixed accounts

     

    94

     

     

     

    97

     

    3%

     

    94

     

    Benefits, claims, losses and settlement expenses

     

    168

     

     

     

    113

     

    (49)%

     

    188

     

    11%

    Remeasurement (gains) losses of future policy benefit reserves

     

    (10

    )

     

     

    5

     

    NM

     

    (4

    )

    NM

    Change in fair value of market risk benefits

     

    259

     

     

     

    (11

    )

    NM

     

    123

     

    NM

    Amortization of deferred acquisition costs

     

    57

     

     

     

    56

     

    (2)%

     

    57

     

    Interest and debt expense

     

    12

     

     

     

    10

     

    (20)%

     

    12

     

    General and administrative expense

     

    79

     

     

     

    82

     

    4%

     

    79

     

    Adjusted operating expenses

     

    776

     

     

     

    458

     

    (69)%

     

    669

     

    (16)%

    Pretax adjusted operating earnings

    $

    100

     

     

    $

    325

     

    (69)%

    $

    189

     

    (47)%

     

     

     

     

     

     

     

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

     

    Ameriprise Financial, Inc.

    Retirement & Protection Solutions Segment Operating Metrics

    (in millions, unaudited)

    3 Qtr 2023

     

    3 Qtr 2022

    % Better/

    (Worse)

    2 Qtr 2023

    % Better/

    (Worse)

     

     

     

     

     

     

     

    Variable Annuities Rollforwards

     

     

     

     

     

     

    Beginning balance

    $

    78,549

     

     

    $

    75,687

     

    4%

    $

    76,809

     

    2%

    Deposit

     

    1,087

     

     

     

    923

     

    18%

     

    940

     

    16%

    Withdrawals and terminations

     

    (1,736

    )

     

     

    (1,419

    )

    (22)%

     

    (1,712

    )

    (1)%

    Net flows

     

    (649

    )

     

     

    (496

    )

    (31)%

     

    (772

    )

    16%

    Investment performance and interest credited

     

    (2,816

    )

     

     

    (3,929

    )

    28%

     

    2,512

     

    NM

    Total ending balance – contract accumulation values

    $

    75,084

     

     

    $

    71,262

     

    5%

    $

    78,549

     

    (4)%

     

     

     

     

     

     

     

    Variable annuities fixed sub-accounts

    $

    4,395

     

     

    $

    4,887

     

    (10)%

    $

    4,524

     

    (3)%

     

     

     

     

     

     

     

    Life Insurance In Force

    $

    198,527

     

     

    $

    198,510

     

    $

    198,686

     

     

     

     

     

     

     

     

    Net Amount at Risk (Life)

    $

    37,917

     

     

    $

    39,400

     

    (4)%

    $

    37,708

     

    1%

     

     

     

     

     

     

     

    Net Policyholder Reserves

     

     

     

     

     

     

    VUL/UL

    $

    13,814

     

     

    $

    12,718

     

    9%

    $

    14,170

     

    (3)%

    Term and whole life

     

    175

     

     

     

    192

     

    (9)%

     

    188

     

    (7)%

    Disability insurance

     

    500

     

     

     

    531

     

    (6)%

     

    539

     

    (7)%

    Other insurance

     

    542

     

     

     

    565

     

    (4)%

     

    548

     

    (1)%

    Total net policyholder reserves

    $

    15,031

     

     

    $

    14,006

     

    7%

    $

    15,445

     

    (3)%

     

     

     

     

     

     

     

    DAC Ending Balances

     

     

     

     

     

     

    Variable Annuities DAC

    $

    1,713

     

     

    $

    1,758

     

    (3)%

    $

    1,722

     

    (1)%

    Life and Health DAC

    $

    963

     

     

    $

    980

     

    (2)%

    $

    964

     

     

     

     

     

     

     

     

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

     

    Ameriprise Financial, Inc.

    Corporate Segment Adjusted Operating Results and Metrics

    (in millions, unaudited)

    3 Qtr 2023

     

    3 Qtr 2022

    % Better/

    (Worse)

    2 Qtr 2023

    % Better/

    (Worse)

     

     

     

     

     

     

     

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

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

     

     

    $

     

    $

     

    Distribution fees

     

     

     

     

     

     

     

    Net investment income

     

    17

     

     

     

    (11

    )

    NM

     

    24

     

    (29)%

    Premiums, policy and contract charges

     

     

     

     

     

     

     

    Other revenues

     

    2

     

     

     

    2

     

     

     

    Total revenues

     

    19

     

     

     

    (9

    )

    NM

     

    24

     

    (21)%

    Banking and deposit interest expense

     

    6

     

     

     

    2

     

    NM

     

    3

     

    NM

    Adjusted operating total net revenues

     

    13

     

     

     

    (11

    )

    NM

     

    21

     

    (38)%

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

     

     

     

     

     

     

     

    Interest credited to fixed accounts

     

     

     

     

     

     

     

    Benefits, claims, losses and settlement expenses

     

     

     

     

     

     

     

    Remeasurement (gains) losses of future policy benefit reserves

     

     

     

     

     

     

     

    Change in fair value of market risk benefits

     

     

     

     

     

     

     

    Amortization of deferred acquisition costs

     

     

     

     

     

     

     

    Interest and debt expense

     

    27

     

     

     

    14

     

    (93)%

     

    27

     

    General and administrative expense

     

    60

     

     

     

    48

     

    (25)%

     

    50

     

    (20)%

    Adjusted operating expenses

     

    87

     

     

     

    62

     

    (40)%

     

    77

     

    (13)%

    Pretax adjusted operating earnings (loss)

    $

    (74

    )

     

    $

    (73

    )

    (1)%

    $

    (56

    )

    (32)%

     

     

     

     

     

     

     

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

     

    Ameriprise Financial, Inc.

    Corporate Segment Adjusted Operating Results and Metrics

    (in millions, unaudited)

    3 Qtr 2023

     

    3 Qtr 2022

    % Better/

    (Worse)

    2 Qtr 2023

    % Better/

    (Worse)

     

     

     

     

     

     

     

    Long Term Care Adjusted Operating Income Statements

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

     

     

    $

     

    $

     

    Distribution fees

     

     

     

     

     

     

     

    Net investment income

     

    46

     

     

     

    38

     

    21%

     

    44

     

    5%

    Premiums, policy and contract charges

     

    25

     

     

     

    25

     

     

    23

     

    9%

    Other revenues

     

     

     

     

     

     

     

    Total revenues

     

    71

     

     

     

    63

     

    13%

     

    67

     

    6%

    Banking and deposit interest expense

     

     

     

     

     

     

     

    Adjusted operating total net revenues

     

    71

     

     

     

    63

     

    13%

     

    67

     

    6%

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

     

    (3

    )

     

     

    (3

    )

     

    (2

    )

    50%

    Interest credited to fixed accounts

     

     

     

     

     

     

     

    Benefits, claims, losses and settlement expenses

     

    58

     

     

     

    65

     

    11%

     

    58

     

    Remeasurement (gains) losses of future policy benefit reserves

     

    (2

    )

     

     

    (6

    )

    (67)%

     

    4

     

    NM

    Change in fair value of market risk benefits

     

     

     

     

     

     

     

    Amortization of deferred acquisition costs

     

     

     

     

     

     

     

    Interest and debt expense

     

    1

     

     

     

    3

     

    67%

     

    1

     

    General and administrative expense

     

    7

     

     

     

    4

     

    (75)%

     

    5

     

    (40)%

    Adjusted operating expenses

     

    61

     

     

     

    63

     

    3%

     

    66

     

    8%

    Pretax adjusted operating earnings (loss)

    $

    10

     

     

    $

     

    $

    1

     

    NM

     

     

     

     

     

     

     

    Long Term Care Policyholder Reserves, net of reinsurance

    $

    2,456

     

     

    $

    2,496

     

    (2)%

    $

    2,616

     

    (6)%

     

     

     

     

     

     

     

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

     

    Ameriprise Financial, Inc.

    Corporate Segment Adjusted Operating Results and Metrics

    (in millions, unaudited)

    3 Qtr 2023

    3 Qtr 2022

    % Better/

    (Worse)

    2 Qtr 2023

    % Better/

    (Worse)

     

     

     

     

     

     

     

     

     

    Fixed Annuities Adjusted Operating Income Statements

     

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

     

     

    Management and financial advice fees

    $

     

     

    $

     

     

    $

     

     

    Distribution fees

     

    1

     

     

     

     

     

     

     

     

    Net investment income

     

    8

     

     

     

    8

     

     

     

    8

     

     

    Premiums, policy and contract charges

     

     

     

     

     

     

     

     

     

    Other revenues

     

    50

     

     

     

    55

     

     

    (9)%

     

    52

     

     

    (4)%

    Total revenues

     

    59

     

     

     

    63

     

     

    (6)%

     

    60

     

     

    (2)%

    Banking and deposit interest expense

     

     

     

     

     

     

     

     

     

    Adjusted operating total net revenues

     

    59

     

     

     

    63

     

     

    (6)%

     

    60

     

     

    (2)%

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

     

     

    Distribution expenses

     

     

     

     

    1

     

     

    NM

     

     

     

    Interest credited to fixed accounts

     

    59

     

     

     

    61

     

     

    3%

     

    57

     

     

    (4)%

    Benefits, claims, losses and settlement expenses

     

    1

     

     

     

    2

     

     

    50%

     

     

     

    Remeasurement (gains) losses of future policy benefit reserves

     

     

     

     

     

     

     

     

     

    Change in fair value of market risk benefits

     

     

     

     

     

     

     

     

     

    Amortization of deferred acquisition costs

     

    4

     

     

     

     

     

     

    2

     

     

    NM

    Interest and debt expense

     

     

     

     

     

     

     

    1

     

     

    NM

    General and administrative expense

     

    3

     

     

     

    4

     

     

    25%

     

    5

     

     

    40%

    Adjusted operating expenses

     

    67

     

     

     

    68

     

     

    1%

     

    65

     

     

    (3)%

    Pretax adjusted operating earnings (loss)

    $

    (8

    )

     

    $

    (5

    )

     

    (60)%

    $

    (5

    )

     

    (60)%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

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

     

    Ameriprise Financial, Inc.

    Eliminations (1) Adjusted Operating Results

    (in millions, unaudited)

    3 Qtr 2023

     

    3 Qtr 2022

    % Better/

    (Worse)

    2 Qtr 2023

    % Better/

    (Worse)

     

     

     

     

     

     

     

    Revenues

     

     

     

     

     

     

    Management and financial advice fees

    $

    (38

    )

     

    $

    (35

    )

    (9)%

    $

    (37

    )

    (3)%

    Distribution fees

     

    (283

    )

     

     

    (270

    )

    (5)%

     

    (277

    )

    (2)%

    Net investment income

     

    (14

    )

     

     

    (5

    )

    NM

     

    (12

    )

    (17)%

    Premiums, policy and contract charges

     

    (8

    )

     

     

    (8

    )

     

    (8

    )

    Other revenues

     

     

     

     

     

     

     

    Total revenues

     

    (343

    )

     

     

    (318

    )

    (8)%

     

    (334

    )

    (3)%

    Banking and deposit interest expense

     

    (6

    )

     

     

    (2

    )

    NM

     

    (3

    )

    NM

    Adjusted operating total net revenues

     

    (337

    )

     

     

    (316

    )

    (7)%

     

    (331

    )

    (2)%

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Distribution expenses

     

    (304

    )

     

     

    (293

    )

    4%

     

    (299

    )

    2%

    Interest credited to fixed accounts

     

     

     

     

     

     

     

    Benefits, claims, losses and settlement expenses

     

    (4

    )

     

     

    (5

    )

    (20)%

     

    (5

    )

    (20)%

    Remeasurement (gains) losses of future policy benefit reserves

     

     

     

     

     

     

     

    Change in fair value of market risk benefits

     

     

     

     

     

     

     

    Amortization of deferred acquisition costs

     

     

     

     

     

     

     

    Interest and debt expense

     

    (9

    )

     

     

    (3

    )

    NM

     

    (9

    )

    General and administrative expense

     

    (20

    )

     

     

    (15

    )

    33%

     

    (18

    )

    11%

    Adjusted operating expenses

     

    (337

    )

     

     

    (316

    )

    7%

     

    (331

    )

    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)

    September 30,
    2023

    September 30,
    2022

    June 30,
    2023

     

     

     

     

     

     

     

    Long-term Debt Summary

     

     

     

     

     

     

    Senior notes

    $

    3,550

     

     

    $

    2,800

     

     

    $

    3,550

     

     

    Finance lease liabilities

     

    22

     

     

     

    33

     

     

     

    23

     

     

    Other (1)

     

    (15

    )

     

     

    (11

    )

     

     

    (16

    )

     

    Total Ameriprise Financial long-term debt

     

    3,557

     

     

     

    2,822

     

     

     

    3,557

     

     

    Non-recourse debt of consolidated investment entities

     

    2,222

     

     

     

    2,401

     

     

     

    2,264

     

     

    Total long-term debt

    $

    5,779

     

     

    $

    5,223

     

     

    $

    5,821

     

     

     

     

     

     

     

     

     

    Total Ameriprise Financial long-term debt

    $

    3,557

     

     

    $

    2,822

     

     

    $

    3,557

     

     

    Finance lease liabilities

     

    (22

    )

     

     

    (33

    )

     

     

    (23

    )

     

    Other (1)

     

    15

     

     

     

    11

     

     

     

    16

     

     

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

    $

    3,550

     

     

    $

    2,800

     

     

    $

    3,550

     

     

     

     

     

     

     

     

     

    Total equity (2)

    $

    3,825

     

     

    $

    3,618

     

     

    $

    4,080

     

     

    Equity of consolidated investment entities

     

    (10

    )

     

     

    (6

    )

     

     

    (10

    )

     

    Total equity excluding CIEs

    $

    3,815

     

     

    $

    3,612

     

     

    $

    4,070

     

     

     

     

     

     

     

     

     

    Total Ameriprise Financial capital

    $

    7,382

     

     

    $

    6,440

     

     

    $

    7,637

     

     

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

    $

    7,365

     

     

    $

    6,412

     

     

    $

    7,620

     

     

     

     

     

     

     

     

     

    Debt to capital

     

     

     

     

     

     

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

     

    48.2

     

    %

     

    43.8

     

    %

     

    46.6

     

    %

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

     

    48.2

     

    %

     

    43.7

     

    %

     

    46.6

     

    %

     

     

     

     

     

     

     

    Available Capital for Capital Adequacy

    $

    5,247

     

     

    $

    5,259

     

     

    $

    5,011

     

     

     

     

     

     

     

     

     

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

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

     

    Ameriprise Financial, Inc.

    Consolidated Balance Sheets

    (in millions, unaudited)

    September 30,
    2023

     

    December 31,
    2022

     

     

     

     

     

     

    Assets

     

     

     

     

    Cash and cash equivalents

    $

    7,010

     

     

    $

    6,964

     

     

    Cash of consolidated investment entities

     

    91

     

     

     

    133

     

     

    Investments

     

    51,995

     

     

     

    44,524

     

     

    Investments of consolidated investment entities

     

    2,166

     

     

     

    2,354

     

     

    Market risk benefits

     

    1,644

     

     

     

    1,015

     

     

    Separate account assets

     

    72,354

     

     

     

    73,962

     

     

    Receivables

     

    14,800

     

     

     

    15,595

     

     

    Receivables of consolidated investment entities

     

    29

     

     

     

    20

     

     

    Deferred acquisition costs

     

    2,725

     

     

     

    2,777

     

     

    Restricted and segregated cash and investments

     

    1,569

     

     

     

    2,229

     

     

    Other assets

     

    10,753

     

     

     

    9,277

     

     

    Other assets of consolidated investment entities

     

     

     

     

    2

     

     

    Total Assets

    $

    165,136

     

     

    $

    158,852

     

     

     

     

     

     

     

    Liabilities

     

     

     

     

    Policyholder account balances, future policy benefits and claims

    $

    35,526

     

     

    $

    34,132

     

     

    Market risk benefits

     

    1,525

     

     

     

    2,118

     

     

    Separate account liabilities

     

    72,354

     

     

     

    73,962

     

     

    Customer deposits

     

    36,109

     

     

     

    30,775

     

     

    Short-term borrowings

     

    201

     

     

     

    201

     

     

    Long-term debt

     

    3,557

     

     

     

    2,821

     

     

    Debt of consolidated investment entities

     

    2,222

     

     

     

    2,363

     

     

    Accounts payable and accrued expenses

     

    2,307

     

     

     

    2,242

     

     

    Other liabilities

     

    7,473

     

     

     

    6,316

     

     

    Other liabilities of consolidated investment entities

     

    37

     

     

     

    119

     

     

    Total Liabilities

     

    161,311

     

     

     

    155,049

     

     

     

     

     

     

     

    Equity

     

     

     

     

    Ameriprise Financial

     

     

     

     

    Common shares ($.01 par)

     

    3

     

     

     

    3

     

     

    Additional paid-in capital

     

    9,744

     

     

     

    9,517

     

     

    Retained earnings

     

    21,670

     

     

     

    19,918

     

     

    Treasury stock

     

    (24,752

    )

     

     

    (23,089

    )

     

    Accumulated other comprehensive income, net of tax

     

    (2,840

    )

     

     

    (2,546

    )

     

    Total Equity

     

    3,825

     

     

     

    3,803

     

     

    Total Liabilities and Equity

    $

    165,136

     

     

    $

    158,852

     

     

     

     

     

     

     

    Supplemental Non-GAAP Information:

     

     

     

     

    Available Capital for Capital Adequacy

    $

    5,247

     

     

    $

    5,209

     

     

     

     

     

     

     

     

    Ameriprise Financial, Inc.

     

    Disclosed Items – Included in Adjusted Operating Earnings

     

    (in millions, unaudited)

     

    3 Qtr 2023

     

     

     

    RPS

     

    Corporate

     

     

     

    Valuation

    Assumption &

    Model Changes (1)

     

    Valuation

    Assumption &

    Model Changes (1)

     

    Revenues

     

     

     

     

     

    Management and financial advice fees

     

    $

     

     

    $

     

     

    Distribution fees

     

     

     

     

     

     

     

    Net investment income

     

     

     

     

     

     

     

    Premiums, policy and contract charges

     

     

    1

     

     

     

     

     

    Other revenues

     

     

     

     

     

     

     

    Total revenues

     

     

    1

     

     

     

     

     

    Banking and deposit interest expense

     

     

     

     

     

     

     

    Adjusted operating total net revenues

     

     

    1

     

     

     

     

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

    Distribution expenses

     

     

     

     

     

     

     

    Interest credited to fixed accounts

     

     

     

     

     

     

     

    Benefits, claims, losses and settlement expenses

     

     

    (17

    )

     

     

     

     

    Remeasurement (gains) losses of future policy benefit reserves

     

     

    (6

    )

     

     

    (5

    )

     

    Change in fair value of market risk benefits

     

     

    128

     

     

     

     

     

    Amortization of deferred acquisition costs

     

     

     

     

     

     

     

    Interest and debt expense

     

     

     

     

     

     

     

    General and administrative expense

     

     

     

     

     

     

     

    Adjusted operating expenses

     

     

    105

     

     

     

    (5

    )

     

    Pretax adjusted operating earnings (loss)

     

    $

    (104

    )

     

    $

    5

     

     

     

     

     

     

     

     

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

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Earnings

     

    Quarter Ended

    September 30,

     

    Per Diluted Share

    Quarter Ended

    September 30,

     

    % Better/

    (Worse)

    (in millions, except per share amounts, unaudited)

     

    2023

     

     

     

    2022

     

     

     

    2023

     

     

     

    2022

     

     

    Net income

    $

    872

     

     

    $

    1,061

     

     

    $

    8.14

     

     

    $

    9.41

     

     

    (13)%

    Adjustments:

     

     

     

     

     

     

     

     

     

    Net realized investment gains (losses) (1)

     

    (38

    )

     

     

    (88

    )

     

     

    (0.35

    )

     

     

    (0.78

    )

     

     

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

     

    211

     

     

     

    405

     

     

     

    1.96

     

     

     

    3.60

     

     

     

    Mean reversion-related impacts (1)

     

     

     

     

    (1

    )

     

     

     

     

     

    (0.01

    )

     

     

    Integration/restructuring charges (1)

     

    (12

    )

     

     

    (11

    )

     

     

    (0.11

    )

     

     

    (0.10

    )

     

     

    Net income (loss) attributable to consolidated investment entities

     

     

     

     

    (3

    )

     

     

     

     

     

    (0.03

    )

     

     

    Tax effect of adjustments (2)

     

    (34

    )

     

     

    (64

    )

     

     

    (0.32

    )

     

     

    (0.57

    )

     

     

    Adjusted operating earnings

    $

    745

     

     

    $

    823

     

     

    $

    6.96

     

     

    $

    7.30

     

     

    (5)%

    Pretax impact of annual unlocking

     

    (99

    )

     

     

    135

     

     

     

    (0.92

    )

     

     

    1.20

     

     

     

    Tax effect of annual unlocking

     

    21

     

     

     

    (28

    )

     

     

    0.20

     

     

     

    (0.25

    )

     

     

    Adjusted operating earnings excluding unlocking

    $

    823

     

     

    $

    716

     

     

    $

    7.68

     

     

    $

    6.35

     

     

    21%

     

     

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding:

     

     

     

     

     

     

     

     

     

    Basic

     

    104.9

     

     

     

    110.5

     

     

     

     

     

     

     

    Diluted

     

    107.1

     

     

     

    112.7

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (1) Pretax adjusted operating adjustment.

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

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Earnings

     

    Year-to-date

    September 30,

     

    Per Diluted Share

    Year-to-date

    September 30,

     

    % Better/

    (Worse)

    (in millions, except per share amounts, unaudited)

     

    2023

     

     

     

    2022

     

     

     

    2023

     

     

     

    2022

     

     

    Net income

    $

    2,179

     

     

    $

    2,500

     

     

    $

    20.08

     

     

    $

    21.85

     

     

    (8)%

    Adjustments:

     

     

     

     

     

     

     

     

     

    Net realized investment gains (losses) (1)

     

    (32

    )

     

     

    (86

    )

     

     

    (0.29

    )

     

     

    (0.75

    )

     

     

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

     

    (137

    )

     

     

    566

     

     

     

    (1.27

    )

     

     

    4.95

     

     

     

    Mean reversion-related impacts (1)

     

     

     

     

    (3

    )

     

     

     

     

     

    (0.03

    )

     

     

    Integration/restructuring charges (1)

     

    (47

    )

     

     

    (35

    )

     

     

    (0.43

    )

     

     

    (0.31

    )

     

     

    Net income (loss) attributable to consolidated investment entities

     

     

     

     

    (2

    )

     

     

     

     

     

    (0.02

    )

     

     

    Tax effect of adjustments (2)

     

    45

     

     

     

    (93

    )

     

     

    0.41

     

     

     

    (0.81

    )

     

     

    Adjusted operating earnings

    $

    2,350

     

     

    $

    2,153

     

     

    $

    21.66

     

     

    $

    18.82

     

     

    15%

    Pretax impact of annual unlocking

     

    (99

    )

     

     

    135

     

     

     

    (0.91

    )

     

     

    1.18

     

     

     

    Tax effect of annual unlocking

     

    21

     

     

     

    (28

    )

     

     

    0.19

     

     

     

    (0.24

    )

     

     

    Adjusted operating earnings excluding unlocking

    $

    2,428

     

     

    $

    2,046

     

     

    $

    22.38

     

     

    $

    17.88

     

     

    25%

     

     

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding:

     

     

     

     

     

     

     

     

     

    Basic

     

    106.4

     

     

     

    112.1

     

     

     

     

     

     

     

    Diluted

     

    108.5

     

     

     

    114.4

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (1) Pretax adjusted operating adjustment.

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

     

    Ameriprise Financial, Inc.

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

     

    Quarter Ended September 30,

     

     

    (in millions, unaudited)

     

    2023

     

     

     

    2022

     

     

     

    Total net revenues

    $

    3,925

     

     

    $

    3,484

     

     

     

    Adjustments:

     

     

     

     

     

    Net realized investment gains (losses)

     

    (38

    )

     

     

    (88

    )

     

     

    Market impact on non-traditional long-duration products

     

    3

     

     

     

    (1

    )

     

     

    Mean Reversion related impacts

     

     

     

     

     

     

     

    Integration/restructuring charges

     

     

     

     

     

     

     

    CIEs revenue

     

    45

     

     

     

    31

     

     

     

    Adjusted operating total net revenues

    $

    3,915

     

     

    $

    3,542

     

     

     

    Annual unlocking

     

    1

     

     

     

    (1

    )

     

     

    Adjusted operating total net revenues excluding unlocking

    $

    3,914

     

     

    $

    3,543

     

     

     

     

     

     

     

     

     

    Total expenses

    $

    2,808

     

     

    $

    2,149

     

     

     

    Adjustments:

     

     

     

     

     

    CIEs expenses

     

    45

     

     

     

    34

     

     

     

    Integration/restructuring charges

     

    12

     

     

     

    11

     

     

     

    Market impact on non-traditional long-duration products

     

    (208

    )

     

     

    (406

    )

     

     

    Mean reversion-related impacts

     

     

     

     

    1

     

     

     

    Adjusted operating expenses

    $

    2,959

     

     

    $

    2,509

     

     

     

    Annual unlocking

     

    100

     

     

     

    (136

    )

     

     

    Adjusted operating total net expenses excluding unlocking

    $

    2,859

     

     

    $

    2,645

     

     

     

     

     

     

     

     

     

    Pretax income

    $

    1,117

     

     

    $

    1,335

     

     

     

    Pretax adjusted operating earnings

    $

    956

     

     

    $

    1,033

     

     

     

    Pretax adjusted operating earnings excluding unlocking

    $

    1,055

     

     

    $

    898

     

     

     

     

     

     

     

     

     

    Pretax income margin

     

    28.5

     

    %

     

    38.3

     

    %

     

    Pretax adjusted operating margin

     

    24.4

     

    %

     

    29.2

     

    %

     

    Pretax adjusted operating margin excluding unlocking

     

    27.0

     

    %

     

    25.3

     

    %

     

     

     

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Available Capital for Capital Adequacy

    (in millions, unaudited)

    September 30,
    2023

     

    September 30,
    2022

     

    June 30,
    2023

     

    Ameriprise Financial GAAP Equity

    $

    3,825

     

     

    $

    3,618

     

     

    $

    4,080

     

     

    Less: AOCI

     

    (2,840

    )

     

     

    (2,665

    )

     

     

    (2,349

    )

     

    Ameriprise Financial GAAP Equity, excl AOCI

     

    6,665

     

     

     

    6,283

     

     

     

    6,429

     

     

    Less: RiverSource Life Insurance Co. GAAP Equity, excluding AOCI

     

    2,084

     

     

     

    1,882

     

     

     

    1,855

     

     

    Add: RiverSource Life Insurance Co. statutory total adjusted capital

     

    2,842

     

     

     

    2,998

     

     

     

    2,653

     

     

    Less: Goodwill and intangibles

     

    2,487

     

     

     

    2,415

     

     

     

    2,525

     

     

    Add: Other adjustments

     

    311

     

     

     

    275

     

     

     

    309

     

     

    Available Capital for Capital Adequacy

    $

    5,247

     

     

    $

    5,259

     

     

    $

    5,011

     

     

     

     

     

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Effective Tax Rate

     

    Quarter Ended

    September 30, 2022

     

    (in millions, unaudited)

    GAAP

     

    Adjusted Operating

    Pretax income

    $

    1,335

     

    $

    1,033

     

    Income tax provision

    $

    274

     

    $

    210

     

     

     

     

     

     

    Effective tax rate

     

    20.5

    %

     

    20.3

    %

     

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Effective Tax Rate

     

    Quarter Ended

    September 30, 2023

     

    (in millions, unaudited)

    GAAP

     

    Adjusted Operating

    Pretax income

    $

    1,117

     

    $

    956

     

    Income tax provision

    $

    245

     

    $

    211

     

     

     

     

     

     

    Pretax income excluding accrual for regulatory matter

     

     

    $

    976

     

    Income tax provision

     

     

    $

    211

     

     

     

     

     

     

    Effective tax rate

     

    21.8

    %

     

    22.1

    %

    Effective tax rate excluding accrual for regulatory matter

     

     

     

    21.6

    %

     

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Effective Tax Rate

     

    Year-to-date

    September 30, 2023

     

    (in millions, unaudited)

    GAAP

     

    Adjusted Operating

    Pretax income

    $

    2,740

     

    $

    2,956

     

    Income tax provision

    $

    561

     

    $

    606

     

     

     

     

     

     

    Effective tax rate

     

    20.5

    %

     

    20.5

    %

     

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Advice & Wealth Management Operating Margin

     

    Quarter Ended

    September 30, 2023

     

    % Better/

    (Worse)

    (in millions, unaudited)

     

    2023

     

     

     

    2022

     

     

    Adjusted operating net revenues

    $

    2,407

     

     

    $

    2,137

     

     

    13%

     

     

     

     

     

     

    Distribution expenses

     

    1,253

     

     

     

    1,149

     

     

     

    Interest and debt expense

     

    6

     

     

     

    3

     

     

     

    General and administrative expenses

     

    419

     

     

     

    390

     

     

     

    Adjusted operating expenses

     

    1,678

     

     

     

    1,542

     

     

    (9)%

    Less: Regulatory accrual

     

    20

     

     

     

     

     

     

    Adjusted operating expenses excluding accrual for regulatory matter

     

    1,658

     

     

     

    1,542

     

     

    (8)%

     

     

     

     

     

     

    Pretax adjusted operating earnings

    $

    729

     

     

    $

    595

     

     

    23%

    Pretax adjusted operating earnings excluding accrual for regulatory matter

    $

    749

     

     

    $

    595

     

     

    26%

     

     

     

     

     

     

    Pretax adjusted operating margin

     

    30.3

    %

     

     

    27.8

    %

     

    250bps

    Pretax adjusted operating margin excluding accrual for regulatory matter

     

    31.1

    %

     

     

    27.8

    %

     

    330bps

     

     

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Advice & Wealth Management General and Administrative Expense

     

    Quarter Ended

    September 30, 2023

     

    % Better/

    (Worse)

    (in millions, unaudited)

     

    2023

     

     

    2022

     

    Total G&A Expense

    $

    419

     

    $

    390

     

    (7)%

    Less: Regulatory accrual

     

    20

     

     

     

     

    Total G&A Expense excluding accrual for regulatory matter

    $

    399

     

    $

    390

     

    (2)%

     

     

     

     

     

     

     

    Ameriprise Financial, Inc.

    Reconciliation Table: Asset Management General and Administrative Expense

     

    Quarter Ended

    September 30, 2023

     

    % Better/

    (Worse)

    (in millions, unaudited)

     

    2023

     

     

    2022

     

    Total G&A Expense

    $

    390

     

    $

    391

     

    Less: Impact of foreign exchange translation

     

    12

     

     

    <