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Ameriprise Financial Reports Fourth Quarter 2023 Results

Ameriprise Financial, Inc. (NYSE: AMP):

Earnings Per Diluted Share

 

Return on Equity, ex AOCI (1)

 

Q4 2023

 

 

Q4 2023

GAAP

$3.57

 

GAAP

39.9%

Adjusted Operating

$7.20

 

Adjusted Operating

48.5%

Adjusted Operating, excluding Regulatory Accrual, Severance and Mark-to-Market Impact on Share-Based Compensation Expense (2)

$7.75

 

 

 

 

 

 

 

 

  • Fourth quarter adjusted operating earnings per diluted share was $7.20. Adjusted operating EPS grew 14 percent to $7.75 adjusted for $0.28 of expense related to a regulatory accrual, $0.14 from severance expense, and $0.13 from mark-to-market impacts on share-based compensation expense resulting from the company’s share price appreciation in the quarter.

 

Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer

 

 

“Ameriprise delivered another strong quarter and record operating results in 2023. We’re executing well, serving clients’ needs and outperforming across market cycles.

 

Our complementary businesses drove significant revenue and earnings growth, as well as strong free cash flow that we consistently invest in the business and return to shareholders at a differentiated rate.

 

In 2024, we continue to be well-positioned, thanks to our compelling value propositions, growth investments and effective expense management.”

  • Fourth quarter GAAP net income per diluted share was $3.57 compared to $5.83 a year ago, primarily from market impacts on the valuation of derivatives and market risk benefits. Full year 2023 GAAP net income per diluted share was $23.71 compared to $27.70 in 2022.

 

  • Full year 2023 adjusted operating earnings per diluted share increased 24 percent to $30.46 adjusted for unlocking and the items cited above.

 

  • Adjusted operating net revenues increased 8 percent from organic growth and higher spread revenues.

 

  • Assets under management and administration reached $1.4 trillion, up 15 percent from strong client net inflows and market appreciation.

 

  • General and administrative expense remained well managed, up 6 percent. Excluding the items cited above, G&A increased just 2 percent.

 

  • The company made growth investments in attractive areas and continued to execute plans to enhance operational efficiency and reduce expense.

 

  • Pretax adjusted operating margin was 24.8 percent, or 26.4 percent excluding the items cited above. Adjusted operating return on equity was 48.5 percent.

 

  • Strong free cash flow generation and balance sheet strength enabled consistent strong capital return to shareholders. The company returned $587 million of capital to shareholders in the quarter and $2.5 billion for the full year.

 

  • Ameriprise successfully closed on its partnership with Comerica Bank in November.

 

  • Ameriprise was recognized among the best-managed companies of 2023 on The Wall Street Journal Management Top 250 list.

 

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

(2) See page 2 for additional detail on the items in the quarter.

 

Ameriprise Financial, Inc.

Fourth Quarter Summary

 

Quarter Ended December 31,

 

% Better/

(Worse)

 

Year-to-date

December 31,

 

% Better/

(Worse)

(in millions, except per share amounts, unaudited)

 

2023

 

 

 

2022

 

 

 

 

2023

 

 

 

2022

 

 

GAAP net income

$

377

 

$

649

 

(42)%

 

$

2,556

 

$

3,149

 

(19)%

Adjusted operating earnings

$

761

 

$

732

 

4%

 

$

3,111

 

$

2,885

 

8%

Adjusted operating earnings excluding unlocking (see reconciliation starting on p. 24)

$

761

 

$

732

 

4%

 

$

3,189

 

$

2,778

 

15%

 

 

 

 

 

 

 

 

GAAP net income per diluted share

$

3.57

 

$

5.83

 

(39)%

 

$

23.71

 

$

27.70

 

(14)%

Adjusted operating earnings per diluted share

$

7.20

 

$

6.57

 

10%

 

$

28.86

 

$

25.37

 

14%

Adjusted operating earnings per diluted share excluding unlocking (see reconciliation starting on p. 24)

$

7.20

 

$

6.57

 

10%

 

$

29.58

 

$

24.43

 

21%

 

 

 

 

 

 

 

 

GAAP Return on Equity, ex. AOCI

 

39.9

%

 

53.0

%

 

 

 

39.9

%

 

53.0

%

 

Adjusted Operating Return on Equity, ex. AOCI

 

48.5

%

 

48.6

%

 

 

 

48.5

%

 

48.6

%

 

Adjusted Operating Return on Equity, ex. AOCI and unlocking (see reconciliation on p. 30)

 

49.7

%

 

46.8

%

 

 

 

49.7

%

 

46.8

%

 

 

 

 

 

 

 

 

 

GAAP Equity, ex. AOCI

$

6,495

 

$

6,349

 

2%

 

$

6,495

 

$

6,349

 

2%

Available Capital for Capital Adequacy

(see reconciliation on p. 26)

$

5,418

 

$

5,209

 

4%

 

$

5,418

 

$

5,209

 

4%

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

103.5

 

 

108.9

 

 

 

 

105.7

 

 

111.3

 

 

Diluted

 

105.7

 

 

111.4

 

 

 

 

107.8

 

 

113.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current quarter GAAP results included unfavorable market impacts on the valuation of derivatives and market risk benefits, as well as $12 million of integration costs after-tax, primarily related to the acquisition of BMO EMEA.

In addition, adjusted operating after-tax results in the quarter included a $30 million accrual for an industry-wide regulatory matter relating to electronic communication recordkeeping requirements, $15 million of severance expense, and $14 million of mark-to-market impacts on share-based compensation expense resulting from the company’s share price appreciation in the quarter.

 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment Adjusted Operating Results

Quarter Ended December 31,

 

% Better/

(Worse)

(in millions, unaudited)

 

2023

 

 

 

2022

 

 

Adjusted operating net revenues

$

2,403

 

$

2,226

 

8%

 

 

 

 

Distribution expenses

 

1,266

 

 

1,153

 

(10)%

Interest and debt expense

 

8

 

 

2

 

NM

General and administrative expenses (1)

 

431

 

 

406

 

(6)%

Adjusted operating expenses

 

1,705

 

 

1,561

 

(9)%

Pretax adjusted operating earnings

$

698

 

$

665

 

5%

 

 

 

 

Pretax adjusted operating margin (1)

 

29.0

%

 

29.9

%

(90) bps

 

 

 

 

 

 

 

 

(1) Excluding the $30 million regulatory accrual in the quarter ended December 31, 2023, margin increased 40 basis points to 30.3 percent and G&A declined 1 percent to $401 million.

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

 

Quarter Ended December 31,

 

% Better/

(Worse)

(in billions, unless otherwise noted)

 

2023

 

 

 

2022

 

 

Total client assets

$

901

 

$

758

19%

Total client net flows

$

22.7

 

 

$

12.4

 

83%

Wrap net flows

$

7.0

 

 

$

6.2

 

12%

AWM cash balances

$

44.5

 

 

$

47.2

 

(6)%

Adjusted operating net revenue per advisor (TTM in thousands)

$

916

 

 

$

827

 

11%

 

 

 

 

 

Advice & Wealth Management pretax adjusted operating earnings were strong at $698 million. Excluding the regulatory accrual, pretax adjusted operating earnings increased 9 percent to $728 million and pretax adjusted operating margin was 30.3 percent.

Adjusted operating net revenues increased 8 percent to $2.4 billion from growth in client assets in both wrap and brokerage accounts, as well as higher interest earnings from cash products. Significant equity market appreciation during the quarter, particularly in December, was not fully reflected in fourth quarter results, as wrap fees are billed on beginning of month balances.

Adjusted operating expenses increased 9 percent to $1.7 billion compared to a year ago. Distribution expenses increased 10 percent. Excluding the regulatory accrual, general and administrative expense was $401 million, down 1 percent.

The Wealth Management business continued to deliver 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 $23 billion in the quarter and $53 billion for the full year.
  • Cash balances increased 10 percent to $44.5 billion on a sequential basis. Total client cash including third-party money market funds and brokered CDs increased to $81.5 billion.
  • Bank and certificate assets grew 28 percent year-over-year.
  • Advisor headcount was 10,367, reflecting good advisor retention coupled with the addition of 166 experienced advisors in the quarter.
  • Adjusted operating net revenue per advisor on a trailing 12-month basis was $916,000, up 11 percent from enhanced productivity, business growth and market appreciation.

 

 

Ameriprise Financial, Inc.

Asset Management Segment Adjusted Operating Results

 

Quarter Ended December 31,

% Better/

(Worse)

(in millions, unaudited)

 

2023

 

 

 

2022

 

Adjusted operating net revenues

$

845

 

$

785

 

8%

 

 

 

 

Distribution expenses

 

228

 

 

228

 

-

Amortization of deferred acquisition costs

 

2

 

 

1

 

NM

Interest and debt expense

 

2

 

 

2

 

-

General and administrative expenses

 

419

 

 

408

 

(3)%

Adjusted operating expenses

 

651

 

 

639

 

(2)%

Pretax adjusted operating earnings

$

194

 

$

146

 

33%

 

 

 

 

Net pretax adjusted operating margin (1)

 

32.4

%

 

28.6

%

 

 

 

 

 

 

 

 

 

 

Quarter Ended December 31,

% Better/

(Worse)

(in billions)

 

2023

 

 

 

2022

 

Total segment AUM

$

637

 

$

584

 

9%

 

 

 

 

Net Flows

 

 

 

Global Retail net flows, ex. legacy insurance partners flows

$

(0.9

)

$

(3.7

)

74%

Global Institutional net flows, ex. legacy insurance partners flows

 

(3.1

)

 

5.0

 

NM

Legacy insurance partners flows

 

(1.2

)

 

(1.7

)

27%

Total segment net flows

$

(5.2

)

$

(0.4

)

NM

 

 

 

 

Model delivery AUA Flows (2)

$

0.3

 

$

1.1

 

(73)%

 

 

 

 

(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 grew 8 percent to $845 million and pretax adjusted operating earnings increased 33 percent to $194 million. Financial results reflected equity market appreciation, disciplined expense management and performance fees, which more than offset the cumulative impact of net outflows. Net pretax adjusted operating margin was 32 percent, consistent with the company’s targeted range of 31 to 35 percent.

Adjusted operating expenses increased 2 percent. General and administrative expenses declined 4 percent excluding the impact of foreign exchange translation and performance fee compensation. The company has been implementing more comprehensive expense management initiatives in light of the environment and its objective to maintain the operating margin in the targeted range.

Total assets under management increased 9 percent to $637 billion as equity market appreciation and foreign exchange translation more than offset net outflows. The underlying fee rate remained stable at 46 basis points. Long term 3-, 5- and 10-year investment performance continues to be very strong.

In the quarter, net outflows were $5.2 billion. Flows included $1.2 billion of outflows related to legacy insurance partners.

  • Retail net outflows were $0.9 billion reflecting gross sales consistent with the industry and year-over-year improvement in redemptions.
  • Global institutional outflows were $3.1 billion, primarily from outflows that were expected from proactive portfolio manager actions related to expense management initiatives.

 

 

Ameriprise Financial, Inc.

Retirement & Protection Solutions Segment Adjusted Operating Results

 

Quarter Ended December 31,

 

% Better/

(Worse)

(in millions, unaudited)

 

2023

 

 

 

2022

 

 

Adjusted operating net revenues

$

918

 

$

813

13%

Adjusted operating expenses

 

716

 

 

 

614

 

(17)%

Pretax adjusted operating earnings

$

202

 

 

$

199

 

2%

 

 

 

 

 

Retirement & Protection Solutions pretax adjusted operating earnings increased 2 percent to $202 million. These high-quality books of business continued to generate strong free cash flow and return on capital with a differentiated risk profile.

Retirement & Protection Solutions sales increased 19 percent, primarily from strong sales growth in structured variable annuities. Protection sales grew 6 percent to $72 million with the majority of sales in higher margin accumulation VUL products.

 

Ameriprise Financial, Inc.

Corporate & Other Segment Adjusted Operating Results

 

Quarter Ended December 31,

% Better/

(Worse)

(in millions, unaudited)

 

2023

 

 

 

2022

 

Corporate & Other, excluding Closed Blocks

$

(117

)

 

$

(81

)

(44)%

Closed Blocks (1)

 

3

 

 

 

(6

)

NM

Pretax adjusted operating earnings / (loss)

$

(114

)

 

$

(87

)

(31)%

 

 

 

 

 

Long Term Care

$

10

 

 

$

1

 

NM

Fixed Annuities

 

(7

)

 

 

(7

)

-

Closed Blocks pretax adjusted operating earnings / (loss)

$

3

 

 

$

(6

)

NM

 

 

 

 

 

(1) Long Term Care and Fixed Annuities.

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

Total Corporate & Other Excluding Closed Blocks pretax adjusted operating loss was $117 million, which included $19 million of severance expense and $9 million of unfavorable mark-to-market impacts on share-based compensation expense. Excluding these items, the pretax adjusted operating loss was $89 million.

Revenues declined $11 million from the prior year, primarily reflecting adjustments and updates to the allocation of investment income across business segments that reflected increased market volatility and the interest rate environment, which had no impact on Ameriprise’s overall results.

Long Term Care pretax adjusted operating earnings improved to $10 million as a result of higher interest earnings.

Fixed Annuities pretax adjusted operating loss was consistent with expectations at $7 million.

Taxes

The operating effective tax rate was 22.3 percent in the quarter and 21.0 percent for the full year. Excluding the regulatory accrual, the operating effective tax rate was 21.7 percent in the quarter and 20.7 percent for the full year.

About Ameriprise Financial

At Ameriprise Financial, we have been helping people feel confident about their financial future for more than 125 years. With extensive investment advice, asset management and insurance capabilities and a nationwide network of 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; 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-K for the period ended December 31, 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.

The Wall Street Journal Management Top 250 ranking for 2023 is based on a holistic measure of corporate effectiveness developed by the Drucker Institute. More than 700 U.S. companies were evaluated on 34 indicators across five dimensions of corporate performance: Customer Satisfaction, Employee Engagement and Development, Innovation, Social Responsibility and Financial Strength. All data collected was the most current available as of June 30, 2023. Ameriprise did not pay a fee to be evaluated for this rating. Ameriprise did pay a licensing fee to use the Management Top 250 logo. See https://www.drucker.institute/company-rankings/the-wall-street-journal-management-top-250/.

 

Ameriprise Financial, Inc.

Consolidated GAAP Results

(in millions, except per share amounts, unaudited)

4 Qtr 2023

 

4 Qtr 2022

% Better/

(Worse)

3 Qtr 2023

% Better/

(Worse)

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

2,284

 

$

2,125

7%

$

2,287

-

Distribution fees

 

469

 

 

 

528

 

(11)%

 

463

 

1%

Net investment income

 

888

 

 

 

577

 

54%

 

809

 

10%

Premiums, policy and contract charges

 

404

 

 

 

363

 

11%

 

390

 

4%

Other revenues

 

123

 

 

 

126

 

(2)%

 

127

 

(3)%

Total revenues

 

4,168

 

 

 

3,719

 

12%

 

4,076

 

2%

Banking and deposit interest expense

 

176

 

 

 

56

 

NM

 

151

 

(17)%

Total net revenues

 

3,992

 

 

 

3,663

 

9%

 

3,925

 

2%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

1,307

 

 

 

1,198

 

(9)%

 

1,297

 

(1)%

Interest credited to fixed accounts

 

190

 

 

 

222

 

14%

 

139

 

(37)%

Benefits, claims, losses and settlement expenses

 

602

 

 

 

325

 

(85)%

 

120

 

NM

Remeasurement (gains) losses of future policy benefit reserves

 

(3

)

 

 

7

 

NM

 

(12

)

(75)%

Change in fair value of market risk benefits

 

240

 

 

 

13

 

NM

 

168

 

(43)%

Amortization of deferred acquisition costs

 

61

 

 

 

62

 

2%

 

62

 

2%

Interest and debt expense

 

84

 

 

 

62

 

(35)%

 

84

 

-

General and administrative expense

 

1,017

 

 

 

957

 

(6)%

 

950

 

(7)%

Total expenses

 

3,498

 

 

 

2,846

 

(23)%

 

2,808

 

(25)%

Pretax income

 

494

 

 

 

817

 

(40)%

 

1,117

 

(56)%

Income tax provision

 

117

 

 

 

168

 

30%

 

245

 

52%

Net income

$

377

 

 

$

649

 

(42)%

$

872

 

(57)%

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

Basic earnings per share

$

3.64

 

 

$

5.96

 

 

$

8.31

 

 

Earnings per diluted share

$

3.57

 

 

$

5.83

 

 

$

8.14

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

Basic

 

103.5

 

 

 

108.9

 

 

 

104.9

 

 

Diluted

 

105.7

 

 

 

111.4

 

 

 

107.1

 

 

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Consolidated Highlights and Capital Summary

(in millions unless otherwise noted, unaudited)

4 Qtr 2023

 

4 Qtr 2022

 

% Better/

(Worse)

 

3 Qtr 2023

 

% Better/

(Worse)

 

 

 

 

 

 

 

Assets Under Management and Administration

 

 

 

 

 

Advice & Wealth Management AUM

$

484,825

 

 

$

409,027

 

19%

$

440,703

 

10%

Asset Management AUM

 

636,936

 

 

 

584,029

 

9%

 

587,171

 

8%

Corporate AUM

 

395

 

 

 

212

 

86%

 

349

 

13%

Eliminations

 

(41,093

)

 

 

(36,945

)

(11)%

 

(37,795

)

(9)%

Total Assets Under Management

 

1,081,063

 

 

 

956,323

 

13%

 

990,428

 

9%

Total Assets Under Administration

 

279,549

 

 

 

222,011

 

26%

 

242,336

 

15%

Total AUM and AUA

$

1,360,612

 

 

$

1,178,334

 

15%

$

1,232,764

 

10%

 

 

 

 

 

 

 

S&P 500

 

 

 

 

 

 

Daily average

 

4,472

 

 

 

3,850

 

16%

 

4,456

 

-

Period end

 

4,770

 

 

 

3,840

 

24%

 

4,288

 

11%

 

 

 

 

 

 

 

Weighted Equity Index (WEI) (1)

 

 

 

 

 

 

Daily average

 

2,892

 

 

 

2,536

 

14%

 

2,903

 

-

Period end

 

3,102

 

 

 

2,549

 

22%

 

2,788

 

11%

 

 

 

 

 

 

 

Common shares

 

 

 

 

 

 

Beginning balance

 

101.4

 

 

 

106.7

 

(5)%

 

102.8

 

(1)%

Repurchases

 

(1.2

)

 

 

(1.6

)

25%

 

(1.5

)

20%

Issuances

 

0.1

 

 

 

0.3

 

(67)%

 

0.3

 

(67)%

Other

 

(0.1

)

 

 

(0.1

)

-

 

(0.2

)

50%

Total common shares outstanding

 

100.2

 

 

 

105.3

 

(5)%

 

101.4

 

(1)%

Restricted stock units

 

2.7

 

 

 

2.8

 

(4)%

 

2.6

 

4%

Total basic common shares outstanding

 

102.9

 

 

 

108.1

 

(5)%

 

104.0

 

(1)%

Total potentially dilutive shares

 

2.2

 

 

 

2.5

 

(12)%

 

2.2

 

-

Total diluted shares

 

105.1

 

 

 

110.6

 

(5)%

 

106.2

 

(1)%

 

 

 

 

 

 

 

Capital Returned to Shareholders

 

 

 

 

 

 

Dividends paid

$

142

 

 

$

138

 

3%

$

143

 

(1)%

Common stock share repurchases

 

445

 

 

 

472

 

(6)%

 

520

 

(14)%

Total Capital Returned to Shareholders

$

587

 

 

$

610

 

(4)%

$

663

 

(11)%

 

 

 

 

 

 

 

(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.

 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment Adjusted Operating Results

(in millions, unaudited)

4 Qtr 2023

 

4 Qtr 2022

 

% Better/

(Worse)

 

3 Qtr 2023

 

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

 

 

 

Advisory fees

$

1,196

 

$

1,084

 

10%

$

1,228

 

(3)%

Financial planning fees

 

119

 

 

117

 

2%

 

102

 

17%

Transaction and other fees

 

93

 

 

90

 

3%

 

94

 

(1)%

Total management and financial advice fees

 

1,408

 

 

1,291

 

9%

 

1,424

 

(1)%

Distribution fees:

 

 

 

 

 

 

 

 

Mutual funds

 

185

 

 

171

 

8%

 

184

 

1%

Insurance and annuity

 

236

 

 

203

 

16%

 

226

 

4%

Off-Balance sheet brokerage cash

 

48

 

 

144

 

(67)%

 

58

 

(17)%

Other products

 

90

 

 

81

 

11%

 

84

 

7%

Total distribution fees

 

559

 

 

599

 

(7)%

 

552

 

1%

Net investment income

 

547

 

 

331

 

65%

 

517

 

6%

Other revenues

 

65

 

 

61

 

7%

 

65

 

-

Total revenues

 

2,579

 

 

2,282

 

13%

 

2,558

 

1%

Banking and deposit interest expense

 

176

 

 

56

 

NM

 

151

 

(17)%

Adjusted operating total net revenues

 

2,403

 

 

2,226

 

8%

 

2,407

 

-

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

Distribution expenses

 

1,266

 

 

1,153

 

(10)%

 

1,253

 

(1)%

Interest and debt expense

 

8

 

 

2

 

NM

 

6

 

(33)%

General and administrative expense

 

431

 

 

406

 

(6)%

 

419

 

(3)%

Adjusted operating expenses

 

1,705

 

 

1,561

 

(9)%

 

1,678

 

(2)%

Pretax adjusted operating earnings

$

698

 

$

665

 

5%

$

729

 

(4)%

 

 

 

 

 

 

 

 

 

Pretax adjusted operating margin

 

29.0

%

 

29.9

%

 

 

30.3

%

 

 

 

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment Operating Metrics

(in millions unless otherwise noted, unaudited)

4 Qtr 2023

4 Qtr 2022

% Better/

(Worse)

3 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

AWM Total Client Assets

$

900,502

 

$

758,156

 

19%

$

816,019

 

10%

 

 

 

 

 

 

 

 

 

Total Client Flows (1)

$

22,710

 

$

12,381

 

83%

$

8,901

 

NM

 

 

 

 

 

 

 

 

 

Total Wrap Accounts

 

 

 

 

 

 

 

 

Beginning assets

$

444,061

 

$

385,210

 

15%

$

454,689

 

(2)%

Net flows (1)

 

6,961

 

 

6,212

 

12%

 

5,391

 

29%

Market appreciation (depreciation) and other

 

37,178

 

 

20,674

 

80%

 

(16,019)

 

NM

Total wrap ending assets

$

488,200

 

$

412,096

 

18%

$

444,061

 

10%

 

 

 

 

 

 

 

 

 

Advisory wrap account assets ending balance (2)

$

483,315

 

$

407,759

 

19%

$

439,341

 

10%

 

 

 

 

 

 

 

 

 

Brokerage Cash & Certificates Balances

 

 

 

 

 

 

 

 

On-balance sheet (Net Investment Income)

 

 

 

 

 

 

 

 

On-balance sheet - broker dealer

$

2,388

 

$

3,168

 

(25)%

$

2,554

 

(6)%

On-balance sheet - bank

 

21,498

 

 

18,305

 

17%

 

20,970

 

3%

On-balance sheet - certificate

 

13,471

 

 

9,313

 

45%

 

12,612

 

7%

Total on-balance sheet

$

37,357

 

$

30,786

 

21%

$

36,136

 

3%

Off-balance sheet (Distribution Fees)

 

 

 

 

 

 

 

 

Off-balance sheet - broker dealer (1)

$

7,103

 

$

16,425

 

(57)%

$

4,347

 

63%

Total brokerage cash & certificates balances

$

44,460

 

$

47,211

 

(6)%

$

40,483

 

10%

 

 

 

 

 

 

 

 

 

Gross Fee Yield

 

 

 

 

 

 

 

 

On-balance sheet - broker dealer

 

5.53

%

 

3.14

%

 

 

5.30

%

 

On-balance sheet - bank

 

5.07

%

 

4.08

%

 

 

4.97

%

 

On-balance sheet - certificates

 

5.51

%

 

3.98

%

 

 

5.40

%

 

Off-balance sheet - broker dealer

 

3.49

%

 

3.31

%

 

 

4.28

%

 

 

 

 

 

 

 

 

 

 

Financial Advisors

 

 

 

 

 

 

 

 

Employee advisors

 

2,228

 

 

2,096

 

6%

 

2,104

 

6%

Franchisee advisors

 

8,139

 

 

8,173

 

-

 

8,154

 

-

Total financial advisors

 

10,367

 

 

10,269

 

1%

 

10,258

 

1%

 

 

 

 

 

 

 

 

 

Advisor Retention

 

 

 

 

 

 

 

 

Employee

 

92.5

%

 

92.1

%

 

 

92.2

%

 

Franchisee

 

92.5

%

 

94.1

%

 

 

92.8

%

 

 

 

 

 

 

 

 

 

 

(1) Q4 2023 includes the addition of $14.7 billion of total client flows from the company's partnership with Comerica, including $2.0 billion of wrap flows and $2.5 billion of cash sweep into off-balance sheet - broker dealer.

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

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

 

Ameriprise Financial, Inc.

Asset Management Segment Adjusted Operating Results

(in millions, unaudited)

4 Qtr 2023

 

4 Qtr 2022

 

% Better/

(Worse)

 

3 Qtr 2023

 

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

 

 

 

Asset management fees:

 

 

 

 

 

 

 

 

Retail

$

479

 

 

$

483

 

 

(1)%

$

499

 

 

(4)%

Institutional

 

203

 

 

 

151

 

 

34%

 

165

 

 

23%

Transaction and other fees

 

49

 

 

 

50

 

 

(2)%

 

50

 

 

(2)%

Revenue from other sources (1)

 

3

 

 

 

4

 

 

(25)%

 

3

 

 

-

Total management and financial advice fees

 

734

 

 

 

688

 

 

7%

 

717

 

 

2%

Distribution fees:

 

 

 

 

 

 

 

 

Mutual funds

 

53

 

 

 

52

 

 

2%

 

53

 

 

-

Insurance and annuity

 

38

 

 

 

38

 

 

-

 

39

 

 

(3)%

Total distribution fees

 

91

 

 

 

90

 

 

1%

 

92

 

 

(1)%

Net investment income

 

15

 

 

 

3

 

 

NM

 

10

 

 

50%

Other revenues

 

5

 

 

 

4

 

 

25%

 

7

 

 

(29)%

Total revenues

 

845

 

 

 

785

 

 

8%

 

826

 

 

2%

Banking and deposit interest expense

 

 

 

 

 

 

-

 

 

 

-

Adjusted operating total net revenues

 

845

 

 

 

785

 

 

8%

 

826

 

 

2%

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

Distribution expenses

 

228

 

 

 

228

 

 

-

 

234

 

 

3%

Amortization of deferred acquisition costs

 

2

 

 

 

1

 

 

NM

 

1

 

 

NM

Interest and debt expense

 

2

 

 

 

2

 

 

-

 

2

 

 

-

General and administrative expense

 

419

 

 

 

408

 

 

(3)%

 

390

 

 

(7)%

Adjusted operating expenses

 

651

 

 

 

639

 

 

(2)%

 

627

 

 

(4)%

Pretax adjusted operating earnings

$

194

 

 

$

146

 

 

33%

$

199

 

 

(3)%

 

 

 

 

 

 

 

 

 

Net Pretax Adjusted Operating Margin Reconciliation

 

 

 

 

 

 

 

Adjusted operating total net revenues

$

845

 

 

$

785

 

 

8%

$

826

 

 

2%

Distribution pass through revenues

 

(180

)

 

 

(179

)

 

(1)%

 

(186

)

 

3%

Subadvisory and other pass through revenues

 

(100

)

 

 

(88

)

 

(14)%

 

(96

)

 

(4)%

Net adjusted operating revenues

$

565

 

 

$

518

 

 

9%

$

544

 

 

4%

 

 

 

 

 

 

 

 

 

Pretax adjusted operating earnings

$

194

 

 

$

146

 

 

33%

$

199

 

 

(3)%

Adjusted operating net investment income

 

(15

)

 

 

(3

)

 

NM

 

(10

)

 

(50)%

Amortization of intangibles

 

4

 

 

 

5

 

 

(20)%

 

5

 

 

(20)%

Net adjusted operating earnings

$

183

 

 

$

148

 

 

24%

$

194

 

 

(6)%

 

 

 

 

 

 

 

 

 

Pretax adjusted operating margin

 

23.0

 

%

 

18.6

 

%

 

 

24.1

 

%

 

Net pretax adjusted operating margin (2)

 

32.4

 

%

 

28.6

 

%

 

 

35.7

 

%

 

 

 

 

 

 

 

 

 

 

Performance fees (3)

 

 

 

 

 

 

 

 

Performance fees

$

44

 

 

$

8

 

 

NM

$

7

 

 

NM

General and administrative expense related to performance fees

 

23

 

 

 

3

 

 

NM

 

1

 

 

NM

Net performance fees

$

21

 

 

$

5

 

 

NM

$

6

 

 

NM

 

 

 

 

 

 

 

 

 

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

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

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

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

 

 

Ameriprise Financial, Inc.

Asset Management Segment Operating Metrics

(in millions, unaudited)

4 Qtr 2023

4 Qtr 2022

% Better/

(Worse)

3 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

Managed Assets Rollforward

 

 

 

 

 

 

 

 

Global Retail Funds

 

 

 

 

 

 

 

 

Beginning assets

$

310,170

 

 

$

296,203

 

 

5%

$

327,420

 

 

(5)%

Inflows

 

13,029

 

 

 

11,836

 

 

10%

 

11,223

 

 

16%

Outflows

 

(17,324

)

 

 

(20,128

)

 

14%

 

(15,166

)

 

(14)%

Net VP/VIT fund flows

 

(1,389

)

 

 

(1,133

)

 

(23)%

 

(1,216

)

 

(14)%

Net new flows

 

(5,684

)

 

 

(9,425

)

 

40%

 

(5,159

)

 

(10)%

Reinvested dividends

 

4,692

 

 

 

5,676

 

 

(17)%

 

1,320

 

 

NM

Net flows

 

(992

)

 

 

(3,749

)

 

74%

 

(3,839

)

 

74%

Distributions

 

(5,367

)

 

 

(6,357

)

 

16%

 

(1,514

)

 

NM

Market appreciation (depreciation) and other

 

27,647

 

 

 

18,606

 

 

49%

 

(8,478

)

 

NM

Foreign currency translation (1)

 

3,402

 

 

 

4,590

 

 

(26)%

 

(3,419

)

 

NM

Total ending assets

 

334,860

 

 

 

309,293

 

 

8%

 

310,170

 

 

8%

% of total retail assets sub-advised

 

15.6

 

%

 

16.0

 

%

 

 

16.0

 

%

 

 

 

 

 

 

 

 

 

 

Global Institutional

 

 

 

 

 

 

 

 

Beginning assets

 

277,001

 

 

 

250,290

 

 

11%

 

289,178

 

 

(4)%

Inflows (2)

 

9,810

 

 

 

15,374

 

 

(36)%

 

8,404

 

 

17%

Outflows (2)

 

(14,021

)

 

 

(12,042

)

 

(16)%

 

(8,809

)

 

(59)%

Net flows

 

(4,211

)

 

 

3,332

 

 

NM

 

(405

)

 

NM

Market appreciation (depreciation) and other (3)

 

22,028

 

 

 

10,952

 

 

NM

 

(4,607

)

 

NM

Foreign currency translation (1)

 

7,258

 

 

 

10,162

 

 

(29)%

 

(7,165

)

 

NM

Total ending assets

 

302,076

 

 

 

274,736

 

 

10%

 

277,001

 

 

9%

 

 

 

 

 

 

 

 

 

Total managed assets

$

636,936

 

 

$

584,029

 

 

9%

$

587,171

 

 

8%

 

 

 

 

 

 

 

 

 

Total net flows

$

(5,203

)

 

$

(417

)

 

NM

$

(4,244

)

 

(23)%

 

 

 

 

 

 

 

 

 

Legacy insurance partners flows

$

(1,212

)

 

$

(1,663

)

 

27%

$

(950

)

 

(28)%

 

 

 

 

 

 

 

 

 

Total Assets Under Advisement (4)

$

26,160

 

 

$

22,163

 

 

18%

$

26,756

 

 

(2)%

Model delivery AUA flows (5)

$

308

 

 

$

1,146

 

 

(73)%

$

213

 

 

45%

 

 

 

 

 

 

 

 

 

(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)

4 Qtr 2023

4 Qtr 2022

% Better/

(Worse)

3 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

Total Managed Assets by Type

 

 

 

 

 

 

 

 

Equity

$

323,043

 

$

301,223

 

7%

$

299,078

 

8%

Fixed income

 

238,353

 

 

 

209,997

 

 

14%

 

214,839

 

 

11%

Money market

 

23,833

 

 

 

21,936

 

 

9%

 

22,719

 

 

5%

Alternative

 

33,476

 

 

 

33,697

 

 

(1)%

 

33,602

 

 

-

Hybrid and other

 

18,231

 

 

 

17,176

 

 

6%

 

16,933

 

 

8%

Total managed assets by type

$

636,936

 

 

$

584,029

 

 

9%

$

587,171

 

 

8%

 

 

 

 

 

 

 

 

 

Average Managed Assets by Type (1)

 

 

 

 

 

 

 

 

Equity

$

304,353

 

 

$

298,195

 

 

2%

$

313,909

 

 

(3)%

Fixed income

 

222,304

 

 

 

204,680

 

 

9%

 

222,745

 

 

-

Money market

 

22,753

 

 

 

21,876

 

 

4%

 

22,583

 

 

1%

Alternative

 

33,503

 

 

 

34,510

 

 

(3)%

 

34,797

 

 

(4)%

Hybrid and other

 

17,329

 

 

 

17,133

 

 

1%

 

17,533

 

 

(1)%

Total average managed assets by type

$

600,242

 

 

$

576,394

 

 

4%

$

611,567

 

 

(2)%

 

 

 

 

 

 

 

 

 

(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

 

4 Qtr 2023

 

 

 

 

 

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

1 year

3 year

5 year

10 year

Equity

43%

69%

79%

89%

Fixed Income

84%

68%

77%

90%

Asset Allocation

90%

54%

83%

90%

 

 

 

 

 

4- or 5-star Morningstar rated funds

Overall

3 year

5 year

10 year

Number of Rated Funds

113

73

95

102

 

 

 

 

 

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 Institutional 3 share class), net of fees. Peer groupings of Threadneedle funds are defined by either IA or Morningstar index and are based on Primary Share Class. Comparisons to Index are measured Gross of Fees.

 

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

 

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

 

Morningstar as of 12/31/23. Columbia funds are available for purchase by U.S. customers. Out of 89 Columbia funds rated (based on primary share class), 5 received a 5-star Overall Rating and 35 received a 4-star Overall Rating. Out of 149 Threadneedle funds rated (based on highest-rated share class), 21 received a 5-star Overall Rating and 52 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.

 

© 2024 Morningstar. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

 

 

 

Ameriprise Financial, Inc.

Retirement & Protection Solutions Segment Adjusted Operating Results

(in millions, unaudited)

4 Qtr 2023

 

4 Qtr 2022

% Better/

(Worse)

3 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

181

 

 

$

184

(2)%

$

186

 

(3)%

Distribution fees

 

100

 

 

 

98

 

2%

 

101

 

(1)%

Net investment income

 

245

 

 

 

180

 

36%

 

215

 

14%

Premiums, policy and contract charges

 

389

 

 

 

349

 

11%

 

372

 

5%

Other revenues

 

3

 

 

 

2

 

50%

 

2

 

50%

Total revenues

 

918

 

 

 

813

 

13%

 

876

 

5%

Banking and deposit interest expense

 

 

 

 

 

-

 

 

-

Adjusted operating total net revenues

 

918

 

 

 

813

 

13%

 

876

 

5%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

117

 

 

 

102

 

(15)%

 

117

 

-

Interest credited to fixed accounts

 

93

 

 

 

97

 

4%

 

94

 

1%

Benefits, claims, losses and settlement expenses

 

226

 

 

 

139

 

(63)%

 

168

 

(35)%

Remeasurement (gains) losses of future policy benefit reserves

 

(2

)

 

 

6

 

NM

 

(10

)

(80)%

Change in fair value of market risk benefits

 

131

 

 

 

123

 

(7)%

 

259

 

49%

Amortization of deferred acquisition costs

 

57

 

 

 

57

 

-

 

57

 

-

Interest and debt expense

 

14

 

 

 

11

 

(27)%

 

12

 

(17)%

General and administrative expense

 

80

 

 

 

79

 

(1)%

 

79

 

(1)%

Adjusted operating expenses

 

716

 

 

 

614

 

(17)%

 

776

 

8%

Pretax adjusted operating earnings

$

202

 

 

$

199

 

2%

$

100

 

NM

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Retirement & Protection Solutions Segment Operating Metrics

(in millions, unaudited)

4 Qtr 2023

 

4 Qtr 2022

% Better/

(Worse)

3 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

Variable Annuities Rollforwards

 

 

 

 

 

 

Beginning balance

$

75,084

 

 

$

71,262

 

5%

$

78,549

 

(4)%

Deposit

 

1,073

 

 

 

930

 

15%

 

1,087

 

(1)%

Withdrawals and terminations

 

(1,922

)

 

 

(1,543

)

(25)%

 

(1,736

)

(11)%

Net flows

 

(849

)

 

 

(613

)

(38)%

 

(649

)

(31)%

Investment performance and interest credited

 

6,519

 

 

 

3,736

 

74%

 

(2,816

)

NM

Total ending balance - contract accumulation values

$

80,754

 

 

$

74,385

 

9%

$

75,084

 

8%

 

 

 

 

 

 

 

Variable annuities fixed sub-accounts

$

4,215

 

 

$

4,779

 

(12)%

$

4,395

 

(4)%

 

 

 

 

 

 

 

Life Insurance In Force

$

198,775

 

 

$

198,859

 

-

$

198,527

 

-

 

 

 

 

 

 

 

Net Amount at Risk (Life)

$

38,406

 

 

$

38,601

 

(1)%

$

37,917

 

1%

 

 

 

 

 

 

 

Net Policyholder Reserves

 

 

 

 

 

 

VUL/UL

$

14,715

 

 

$

13,357

 

10%

$

13,814

 

7%

Term and whole life

 

187

 

 

 

194

 

(4)%

 

175

 

7%

Disability insurance

 

536

 

 

 

543

 

(1)%

 

500

 

7%

Other insurance

 

537

 

 

 

557

 

(4)%

 

542

 

(1)%

Total net policyholder reserves

$

15,975

 

 

$

14,651

 

9%

$

15,031

 

6%

 

 

 

 

 

 

 

DAC Ending Balances

 

 

 

 

 

 

Variable Annuities DAC

$

1,704

 

 

$

1,747

 

(2)%

$

1,713

 

(1)%

Life and Health DAC

$

961

 

 

$

975

 

(1)%

$

963

 

-

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Corporate Segment Adjusted Operating Results and Metrics

(in millions, unaudited)

4 Qtr 2023

 

4 Qtr 2022

% Better/

(Worse)

3 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

 

(8

)

 

 

(3

)

NM

 

17

 

NM

Premiums, policy and contract charges

 

 

 

 

 

-

 

 

-

Other revenues

 

1

 

 

 

3

 

(67)%

 

2

 

(50)%

Total revenues

 

(7

)

 

 

 

-

 

19

 

NM

Banking and deposit interest expense

 

7

 

 

 

3

 

NM

 

6

 

(17)%

Adjusted operating total net revenues

 

(14

)

 

 

(3

)

NM

 

13

 

NM

 

 

 

 

 

 

 

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

 

20

 

 

 

19

 

(5)%

 

27

 

26%

General and administrative expense

 

83

 

 

 

59

 

(41)%

 

60

 

(38)%

Adjusted operating expenses

 

103

 

 

 

78

 

(32)%

 

87

 

(18)%

Pretax adjusted operating earnings (loss)

$

(117

)

 

$

(81

)

(44)%

$

(74

)

(58)%

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Corporate Segment Adjusted Operating Results and Metrics

(in millions, unaudited)

4 Qtr 2023

 

4 Qtr 2022

% Better/

(Worse)

3 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

Long Term Care Adjusted Operating Income Statements

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

 

 

$

 

-

$

 

-

Distribution fees

 

 

 

 

 

-

 

 

-

Net investment income

 

48

 

 

 

42

 

14%

 

46

 

4%

Premiums, policy and contract charges

 

24

 

 

 

26

 

(8)%

 

25

 

(4)%

Other revenues

 

 

 

 

 

-

 

 

-

Total revenues

 

72

 

 

 

68

 

6%

 

71

 

1%

Banking and deposit interest expense

 

 

 

 

 

-

 

 

-

Adjusted operating total net revenues

 

72

 

 

 

68

 

6%

 

71

 

1%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

(4

)

 

 

(4

)

-

 

(3

)

33%

Interest credited to fixed accounts

 

 

 

 

 

-

 

 

-

Benefits, claims, losses and settlement expenses

 

60

 

 

 

60

 

-

 

58

 

(3)%

Remeasurement (gains) losses of future policy benefit reserves

 

(1

)

 

 

1

 

NM

 

(2

)

(50)%

Change in fair value of market risk benefits

 

 

 

 

 

-

 

 

-

Amortization of deferred acquisition costs

 

 

 

 

 

-

 

 

-

Interest and debt expense

 

2

 

 

 

3

 

33%

 

1

 

NM

General and administrative expense

 

5

 

 

 

7

 

29%

 

7

 

29%

Adjusted operating expenses

 

62

 

 

 

67

 

7%

 

61

 

(2)%

Pretax adjusted operating earnings (loss)

$

10

 

 

$

1

 

NM

$

10

 

-

 

 

 

 

 

 

 

Long Term Care Policyholder Reserves, net of reinsurance

$

2,677

 

 

$

2,583

 

4%

$

2,456

 

9%

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Corporate Segment Adjusted Operating Results and Metrics

(in millions, unaudited)

4 Qtr 2023

4 Qtr 2022

% Better/

(Worse)

3 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

 

 

Fixed Annuities Adjusted Operating Income Statements

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

Management and financial advice fees

$

 

 

$

 

 

-

$

 

 

-

Distribution fees

 

 

 

 

 

 

-

 

1

 

 

NM

Net investment income

 

9

 

 

 

9

 

 

-

 

8

 

 

13%

Premiums, policy and contract charges

 

 

 

 

 

 

-

 

 

 

-

Other revenues

 

49

 

 

 

55

 

 

(11)%

 

50

 

 

(2)%

Total revenues

 

58

 

 

 

64

 

 

(9)%

 

59

 

 

(2)%

Banking and deposit interest expense

 

 

 

 

 

 

-

 

 

 

-

Adjusted operating total net revenues

 

58

 

 

 

64

 

 

(9)%

 

59

 

 

(2)%

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

Distribution expenses

 

1

 

 

 

 

 

-

 

 

 

-

Interest credited to fixed accounts

 

57

 

 

 

60

 

 

5%

 

59

 

 

3%

Benefits, claims, losses and settlement expenses

 

1

 

 

 

3

 

 

67%

 

1

 

 

-

Remeasurement (gains) losses of future policy benefit reserves

 

 

 

 

 

 

-

 

 

 

-

Change in fair value of market risk benefits

 

 

 

 

 

 

-

 

 

 

-

Amortization of deferred acquisition costs

 

2

 

 

 

4

 

 

50%

 

4

 

 

50%

Interest and debt expense

 

 

 

 

 

 

-

 

 

 

-

General and administrative expense

 

4

 

 

 

4

 

 

-

 

3

 

 

(33)%

Adjusted operating expenses

 

65

 

 

 

71

 

 

8%

 

67

 

 

3%

Pretax adjusted operating earnings (loss)

$

(7

)

 

$

(7

)

 

-

$

(8

)

 

13%

 

 

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Eliminations (1) Adjusted Operating Results

(in millions, unaudited)

4 Qtr 2023

 

4 Qtr 2022

% Better/

(Worse)

3 Qtr 2023

% Better/

(Worse)

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

(37

)

 

$

(36

)

(3)%

$

(38

)

3%

Distribution fees

 

(280

)

 

 

(259

)

(8)%

 

(283

)

1%

Net investment income

 

(16

)

 

 

(11

)

(45)%

 

(14

)

(14)%

Premiums, policy and contract charges

 

(8

)

 

 

(8

)

-

 

(8

)

-

Other revenues

 

 

 

 

 

-

 

 

-

Total revenues

 

(341

)

 

 

(314

)

(9)%

 

(343

)

1%

Banking and deposit interest expense

 

(7

)

 

 

(3

)

NM

 

(6

)

17%

Adjusted operating total net revenues

 

(334

)

 

 

(311

)

(7)%

 

(337

)

1%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

(301

)

 

 

(281

)

7%

 

(304

)

(1)%

Interest credited to fixed accounts

 

 

 

 

 

-

 

 

-

Benefits, claims, losses and settlement expenses

 

(5

)

 

 

 

-

 

(4

)

25%

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

 

(7

)

 

 

(8

)

(13)%

 

(9

)

(22)%

General and administrative expense

 

(21

)

 

 

(22

)

(5)%

 

(20

)

5%

Adjusted operating expenses

 

(334

)

 

 

(311

)

7%

 

(337

)

(1)%

Pretax adjusted operating earnings (loss)

$

 

 

$

 

-

$

 

-

 

 

 

 

 

 

 

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

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

 

Ameriprise Financial, Inc.

Capital Information

(in millions, unaudited)

December 31,

2023

December 31,

2022

September 30,

2023

 

 

 

 

 

 

 

Long-term Debt Summary

 

 

 

 

 

 

Senior notes

$

3,400

 

 

$

2,800

 

 

$

3,550

 

 

Finance lease liabilities

 

20

 

 

 

30

 

 

 

22

 

 

Other (1)

 

(21

)

 

 

(9

)

 

 

(15

)

 

Total Ameriprise Financial long-term debt

 

3,399

 

 

 

2,821

 

 

 

3,557

 

 

Non-recourse debt of consolidated investment entities

 

2,155

 

 

 

2,363

 

 

 

2,222

 

 

Total long-term debt

$

5,554

 

 

$

5,184

 

 

$

5,779

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt

$

3,399

 

 

$

2,821

 

 

$

3,557

 

 

Finance lease liabilities

 

(20

)

 

 

(30

)

 

 

(22

)

 

Other (1)

 

21

 

 

 

9

 

 

 

15

 

 

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

$

3,400

 

 

$

2,800

 

 

$

3,550

 

 

 

 

 

 

 

 

 

Total equity (2)

$

4,729

 

 

$

3,803

 

 

$

3,825

 

 

Equity of consolidated investment entities

 

(1

)

 

 

(7

)

 

 

(10

)

 

Total equity excluding CIEs

$

4,728

 

 

$

3,796

 

 

$

3,815

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial capital

$

8,128

 

 

$

6,624

 

 

$

7,382

 

 

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

$

8,128

 

 

$

6,596

 

 

$

7,365

 

 

 

 

 

 

 

 

 

Debt to capital

 

 

 

 

 

 

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

 

41.8

 

%

 

42.6

 

%

 

48.2

 

%

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

 

41.8

 

%

 

42.4

 

%

 

48.2

 

%

 

 

 

 

 

 

 

Available Capital for Capital Adequacy

$

5,418

 

 

$

5,209

 

 

$

5,247

 

 

 

 

 

 

 

 

 

(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)

December 31,

2023

 

December 31,

2022

 

 

 

 

 

 

Assets

 

 

 

 

Cash and cash equivalents

$

7,477

 

 

$

6,964

 

 

Cash of consolidated investment entities

 

87

 

 

 

133

 

 

Investments

 

55,489

 

 

 

44,524

 

 

Investments of consolidated investment entities

 

2,099

 

 

 

2,354

 

 

Market risk benefits

 

1,427

 

 

 

1,015

 

 

Separate account assets

 

77,457

 

 

 

73,962

 

 

Receivables

 

15,078

 

 

 

15,595

 

 

Receivables of consolidated investment entities

 

28

 

 

 

20

 

 

Deferred acquisition costs

 

2,713

 

 

 

2,777

 

 

Restricted and segregated cash and investments

 

1,635

 

 

 

2,229

 

 

Other assets

 

11,700

 

 

 

9,277

 

 

Other assets of consolidated investment entities

 

1

 

 

 

2

 

 

Total Assets

$

175,191

 

 

$

158,852

 

 

 

 

 

 

 

Liabilities

 

 

 

 

Policyholder account balances, future policy benefits and claims

$

37,545

 

 

$

34,132

 

 

Market risk benefits

 

1,762

 

 

 

2,118

 

 

Separate account liabilities

 

77,457

 

 

 

73,962

 

 

Customer deposits

 

37,321

 

 

 

30,775

 

 

Short-term borrowings

 

201

 

 

 

201

 

 

Long-term debt

 

3,399

 

 

 

2,821

 

 

Debt of consolidated investment entities

 

2,155

 

 

 

2,363

 

 

Accounts payable and accrued expenses

 

2,603

 

 

 

2,242

 

 

Other liabilities

 

7,974

 

 

 

6,316

 

 

Other liabilities of consolidated investment entities

 

45

 

 

 

119

 

 

Total Liabilities

 

170,462

 

 

 

155,049

 

 

 

 

 

 

 

Equity

 

 

 

 

Ameriprise Financial

 

 

 

 

Common shares ($.01 par)

 

3

 

 

 

3

 

 

Additional paid-in capital

 

9,824

 

 

 

9,517

 

 

Retained earnings

 

21,905

 

 

 

19,918

 

 

Treasury stock

 

(25,237

)

 

 

(23,089

)

 

Accumulated other comprehensive income, net of tax

 

(1,766

)

 

 

(2,546

)

 

Total Equity

 

4,729

 

 

 

3,803

 

 

Total Liabilities and Equity

$

175,191

 

 

$

158,852

 

 

 

 

 

 

 

Supplemental Non-GAAP Information:

 

 

 

 

Available Capital for Capital Adequacy

$

5,418

 

 

$

5,209

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

Reconciliation Table: Earnings

 

Quarter Ended December 31,

 

% Better/

(Worse)

 

Per Diluted Share

Quarter Ended

December 31,

 

% Better/

(Worse)

(in millions, except per share amounts, unaudited)

 

2023

 

 

 

2022

 

 

 

 

2023

 

 

 

2022

 

 

Net income

$

377

 

 

$

649

 

 

(42)%

 

$

3.57

 

 

$

5.83

 

 

(39)%

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Net realized investment gains (losses) (1)

 

 

 

 

(7

)

 

 

 

 

 

 

 

(0.06

)

 

 

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

 

(471

)

 

 

(83

)

 

 

 

 

(4.45

)

 

 

(0.75

)

 

 

Mean reversion-related impacts (1)

 

 

 

 

2

 

 

 

 

 

 

 

 

0.02

 

 

 

Integration/restructuring charges (1)

 

(15

)

 

 

(15

)

 

 

 

 

(0.14

)

 

 

(0.13

)

 

 

Net income (loss) attributable to consolidated investment entities

 

 

 

 

(2

)

 

 

 

 

 

 

 

(0.02

)

 

 

Tax effect of adjustments (2)

 

102

 

 

 

22

 

 

 

 

 

0.96

 

 

 

0.20

 

 

 

Adjusted operating earnings

$

761

 

 

$

732

 

 

4%

 

$

7.20

 

 

$

6.57

 

 

10%

Pretax impact of regulatory accrual, severance, and mark-to-market impact on share-based compensation expense (3)

 

(63

)

 

 

(23

)

 

 

 

 

(0.59

)

 

 

(0.21

)

 

 

Tax effect of regulatory accrual, severance, and mark-to-market impact on share-based compensation expense (4)

 

4

 

 

 

1

 

 

 

 

 

0.04

 

 

 

0.01

 

 

 

Adjusted operating earnings excluding regulatory accrual, severance, and mark-to-market impact on share-based compensation expense

$

820

 

 

$

754

 

 

9%

 

$

7.75

 

 

$

6.77

 

 

14%

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

103.5

 

 

 

108.9

 

 

 

 

 

 

 

 

 

Diluted

 

105.7

 

 

 

111.4

 

 

 

 

 

 

 

 

 

(1) Pretax adjusted operating adjustment.

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

(3) 2023 includes a regulatory accrual, severance expense and mark-to-market impact on share-based compensation expense. 2022 includes only mark-to-market impact on share-based compensation expense.

(4) Calculated using a tax rate of 0%, 21%, and 5%, respectively.

 

Ameriprise Financial, Inc.

Reconciliation Table: Earnings

 

Year-to-date

December 31,

 

% Better/

(Worse)