Press Release

Ameriprise Financial Reports Second Quarter 2023 Results

Company Release - 7/26/2023 4:08 PM

Ameriprise Financial, Inc. (NYSE: AMP):

Earnings Per Diluted Share

 

Return on Equity, ex AOCI (1)

 

Q2 2023

 

 

Q2 2023

GAAP

$8.21

 

GAAP

48.6%

Adjusted Operating

$7.44

 

Adjusted Operating

50.9%

 

 

 

 

 

  • Second quarter adjusted operating earnings per diluted share was $7.44, up 30 percent from the prior year driven by strong business performance in Wealth Management.

 

Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer

 

“Ameriprise delivered another strong quarter overall, led by continued growth of our Wealth Management business.

 

We’re benefiting from our broad investment capabilities, extensive technology and high-quality service that are core to the Ameriprise client experience and represent strategic advantages. We’re serving more affluent clients and had another strong quarter of experienced advisor recruiting. And with the growth of Ameriprise Bank, we’re driving excellent results across Wealth Management with revenue and profitability at record levels.

 

Our diversified business generates a mix of both fee-and spread-based revenue and strong free cash flow. We continue to invest for growth and return capital to shareholders at attractive levels, while managing expenses well.

 

Overall, Ameriprise delivered a strong first half of 2023, and we remain focused on executing our priorities and managing environmental uncertainties.”

 

  • Second quarter GAAP net income per diluted share was $8.21 compared to $5.37 a year ago, primarily reflecting the market impact on the valuation of derivatives and market risk benefits.

 

  • Assets under management and administration reached $1.3 trillion, up 9 percent, from strong client net inflows and market appreciation.

 

  • Wealth Management delivered a record high pretax adjusted operating margin of 31 percent from strong business growth. Adjusted operating net revenue increased 14 percent and pretax adjusted operating earnings grew 49 percent. Total client flows increased 10 percent to $9.4 billion, and Ameriprise Bank and Certificate Company assets reached $34.7 billion.

 

  • The Asset Management net pretax adjusted operating margin was 30 percent. Net flow trends were in line with the industry as the environment remains challenging.

 

  • Retirement & Protection Solutions pretax adjusted operating earnings increased 13 percent. These high-returning books of business generate substantial free cash flow.

 

  • The company returned $638 million of capital to shareholders in the quarter, which was 79 percent of adjusted operating earnings. In addition, the company announced a new share repurchase authorization of $3.5 billion through September 30, 2025. Excess capital remained strong at $1.3 billion and adjusted operating ROE was 51 percent.

 

 

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

 

Ameriprise Financial, Inc.

Second Quarter Summary

 

Quarter Ended June 30,

% Better/
(Worse)

 

(in millions, except per share amounts, unaudited)

2023

2022

 

GAAP net income

$

890

 

$

614

 

45

%

 

Adjusted operating earnings
(reconciliation on p. 24)

$

807

 

$

654

 

23

%

 

 

 

 

 

 

GAAP net income per diluted share

$

8.21

 

$

5.37

 

53

%

 

Adjusted operating earnings per diluted share
(reconciliation on p. 24)

$

7.44

 

$

5.72

 

30

%

 

 

 

 

 

 

GAAP Return on Equity, ex. AOCI

 

48.6

%

 

55.5

%

 

 

Adjusted Operating Return on Equity, ex. AOCI
(reconciliation on p. 26)

 

50.9

%

 

48.1

%

 

 

 

 

 

 

 

GAAP Equity, ex. AOCI

$

6,429

 

$

5,818

 

11

%

 

Available Capital for Capital Adequacy
(reconciliation on p. 25)

$

5,011

 

$

5,294

 

(5

)%

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

Basic

 

106.4

 

 

112.3

 

 

 

Diluted

 

108.4

 

 

114.4

 

 

 

 

 

 

 

 

 

Second quarter 2023 GAAP results were positively impacted by market changes that affected the valuation of derivatives and market risk benefits. The current quarter also included $20 million of after-tax integration costs related to the acquisition of BMO EMEA, a portion of which was related to the consolidation of the majority of our London-based teams into a single location at the end of June.

 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment Adjusted Operating Results

 

Quarter Ended June 30,

% Better/
(Worse)

(in millions, unaudited)

2023

2022

Adjusted operating net revenues

$

2,343

 

$

2,056

 

14

%

 

 

 

 

Distribution expenses

 

1,196

 

 

1,185

 

(1

)%

Interest and debt expense

 

6

 

 

3

 

NM

 

General and administrative expenses

 

410

 

 

376

 

(9

)%

Adjusted operating expenses

 

1,612

 

 

1,564

 

(3

)%

Pretax adjusted operating earnings

$

731

 

$

492

 

49

%

 

 

 

 

Pretax adjusted operating margin

 

31.2

%

 

23.9

%

730 bps

 

 

 

 

 

 

 

Quarter Ended June 30,

% Better/
(Worse)

 

(in billions, unless otherwise noted)

2023

2022

 

Total client assets

$

833

$

735

13

%

 

Total client net flows

$

9.4

$

8.6

10

%

 

Wrap net flows

$

5.6

$

6.2

(9

)%

 

AWM cash balances

$

42.0

$

47.4

(11

)%

 

Adjusted operating net revenue per advisor (TTM in thousands)

$

874

$

814

7

%

 

 

 

 

 

 

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

 

Advice & Wealth Management pretax adjusted operating earnings increased 49 percent and pretax adjusted operating margin reached a record high of 31.2 percent. Spread revenues increased year-over-year and are expected to remain a sustainable driver of revenue going forward.

Net revenues increased 14 percent to $2.3 billion from strong client flows, higher investment income from continued growth in the bank and certificate companies, as well as from higher short term rates on off balance sheet cash.

Adjusted operating expenses increased 3 percent to $1.6 billion compared to a year ago. Distribution expenses increased 1 percent. General and administrative expense was $410 million, reflecting continued expense discipline while investing for business growth and higher business volume. In the first half of 2022, general and administrative expense was muted as a result of the pandemic.

The Wealth Management business continued to deliver robust organic growth. Clients and advisors remained engaged and focused on positioning portfolios to meet financial planning goals through the market cycle.

  • Total client net flows increased 10 percent to $9.4 billion, with $5.6 billion of flows into wrap accounts and $3.8 billion into other products.
  • AWM cash balances were $42.0 billion, down 5 percent sequentially primarily related to a normal seasonal draw down on cash associated with tax payments with limited cash sorting.
  • Ameriprise Bank and Ameriprise Certificate Company assets grew 53 percent year-over-year.
  • Total advisors increased to 10,274 from excellent advisor retention coupled with the addition of 99 experienced advisors in the quarter.
  • Adjusted operating net revenue per advisor on a trailing 12-month basis was $874,000, up 7 percent from enhanced productivity, business growth and market impacts.

     

 

Ameriprise Financial, Inc.

Asset Management Segment Adjusted Operating Results

 

Quarter Ended June 30,

% Better/
(Worse)

(in millions, unaudited)

2023

2022

Adjusted operating net revenues

$

808

 

$

881

 

(8

)%

 

 

 

 

Distribution expenses

 

233

 

 

252

 

8

%

Amortization of deferred acquisition costs

 

2

 

 

3

 

33

%

Interest and debt expense

 

1

 

 

1

 

-

 

General and administrative expenses

 

410

 

 

403

 

(2

)%

Adjusted operating expenses

 

646

 

 

659

 

2

%

Pretax adjusted operating earnings

$

162

 

$

222

 

(27

)%

 

 

 

 

Net pretax adjusted operating margin (1)

 

29.8

%

 

38.5

%

 

 

 

 

 

 

 

 

 

 

Quarter Ended June 30,

% Better/
(Worse)

(in billions)

2023

2022

Total segment AUM

$

617

 

$

598

 

3

%

 

 

 

 

Net Flows

 

 

 

Global Retail net flows, ex. legacy insurance partners flows

$

(4.7

)

$

(5.8

)

17

%

Global Institutional net flows, ex. legacy insurance partners flows

 

0.8

 

 

3.9

 

NM

 

Legacy insurance partners flows

 

(1.4

)

 

(1.2

)

(14

)%

Total segment net flows

$

(5.3

)

$

(3.1

)

(72

)%

 

 

 

 

Model delivery AUA Flows (2)

$

0.4

 

$

0.4

 

(9

)%

 

 

 

 

(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 and pretax adjusted operating earnings were $808 million and $162 million, respectively. Financial results reflect the cumulative impact of net outflows, a decline in fixed income markets and lower performance fees, which were partially offset by improved equity markets. Net pretax adjusted operating margin was 30 percent.

Adjusted operating expenses decreased 2 percent. G&A expenses increased 2 percent primarily from the mark-to-market of share-based compensation expense. Distribution expenses decreased 8 percent reflecting lower average assets under management.

Total assets under management increased 3 percent to $617 billion as equity market appreciation was partially offset by fixed income market depreciation as well as net outflows. Long term investment performance remained strong with 115 funds with 4- and 5-star Morningstar ratings.

In the quarter, net outflows were $5.3 billion and included $1.4 billion of outflows related to legacy insurance partners.

  • Retail net outflows were $4.7 billion as gross sales remained pressured while redemptions slowed versus the prior year. In addition, reinvested dividends were $2 billion lower than the year ago quarter.
  • Global institutional had strong inflows into high yield and property mandates that more than offset outflows in liability driven investing strategies (LDI) leading to net inflows of $0.8 billion.
 

Ameriprise Financial, Inc.

Retirement & Protection Solutions Segment Adjusted Operating Results

 

Quarter Ended June 30,

% Better/
(Worse)

(in millions, unaudited)

2023

2022

Adjusted operating net revenues

$

858

$

760

13

%

Adjusted operating expenses

 

669

 

592

(13

)%

Pretax adjusted operating earnings

$

189

$

168

13

%

 

 

 

 

 

Retirement & Protection Solutions pretax adjusted operating earnings increased 13 percent to $189 million primarily from rising interest rates and prior period investment portfolio repositioning. Results in the quarter included $7 million of unfavorable unusual and timing-related items. 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 declined 10 percent, primarily from a decline in variable annuity sales as a result of the discontinuation of the sale of living benefit riders. Protection sales improved 18 percent to $77 million with the majority of sales in higher margin accumulation VUL products.

 

Ameriprise Financial, Inc.

Corporate & Other Segment Adjusted Operating Results

 

Quarter Ended June 30,

% Better/
(Worse)

(in millions, unaudited)

2023

2022

Corporate & Other, excluding Closed Blocks

$

(56

)

$

(48

)

(17

)%

Closed Blocks (1)

 

(4

)

 

(11

)

64

%

Pretax adjusted operating earnings / (loss)

$

(60

)

$

(59

)

(2

)%

 

 

 

 

Long Term Care

$

1

 

$

(6

)

NM

 

Fixed Annuities

 

(5

)

 

(5

)

-

 

Closed Blocks pretax adjusted operating earnings / (loss)

$

(4

)

$

(11

)

64

%

 

 

 

 

(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 $60 million, which included a net $8 million favorable impact from a benefit related to a low income housing partnership investment partially offset by an unfavorable mark-to-market share-based compensation expense.

Long Term Care pretax adjusted operating earnings improved to $1 million as a result of higher investment yields from rising interest rates and prior period investment portfolio repositioning.

Fixed Annuities pretax adjusted operating loss was consistent with expectations at $5 million.

Taxes

The operating effective tax rate was 21.0 percent in the quarter. The operating effective tax rate is expected to be in the 20 to 21 percent range for the second half and full year of 2023.

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 earnings, 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 spread revenues being a sustainable driver going forward;
  • statements estimating the expected second half and 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 June 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)

2 Qtr 2023

 

2 Qtr 2022

% Better/
(Worse)

1 Qtr 2023

% Better/
(Worse)

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

2,199

 

 

$

2,277

 

(3

)%

$

2,137

 

3

%

Distribution fees

 

482

 

 

 

459

 

5

%

 

517

 

(7

)%

Net investment income

 

811

 

 

 

287

 

NM

 

 

698

 

16

%

Premiums, policy and contract charges

 

383

 

 

 

342

 

12

%

 

362

 

6

%

Other revenues

 

132

 

 

 

124

 

6

%

 

131

 

1

%

Total revenues

 

4,007

 

 

 

3,489

 

15

%

 

3,845

 

4

%

Banking and deposit interest expense

 

131

 

 

 

3

 

NM

 

 

103

 

(27

)%

Total net revenues

 

3,876

 

 

 

3,486

 

11

%

 

3,742

 

4

%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

1,248

 

 

 

1,239

 

(1

)%

 

1,226

 

(2

)%

Interest credited to fixed accounts

 

161

 

 

 

145

 

(11

)%

 

164

 

2

%

Benefits, claims, losses and settlement expenses

 

327

 

 

 

(196

)

NM

 

 

301

 

(9

)%

Remeasurement (gains) losses of future policy benefit reserves

 

 

 

 

1

 

NM

 

 

(5

)

NM

 

Change in fair value of market risk benefits

 

(99

)

 

 

519

 

NM

 

 

489

 

NM

 

Amortization of deferred acquisition costs

 

61

 

 

 

67

 

9

%

 

62

 

2

%

Interest and debt expense

 

84

 

 

 

44

 

(91

)%

 

72

 

(17

)%

General and administrative expense

 

967

 

 

 

894

 

(8

)%

 

937

 

(3

)%

Total expenses

 

2,749

 

 

 

2,713

 

(1

)%

 

3,246

 

15

%

Pretax income

 

1,127

 

 

 

773

 

46

%

 

496

 

NM

 

Income tax provision

 

237

 

 

 

159

 

(49

)%

 

79

 

NM

 

Net income

$

890

 

 

$

614

 

45

%

$

417

 

NM

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

Basic earnings per share

$

8.36

 

 

$

5.47

 

 

$

3.86

 

 

Earnings per diluted share

$

8.21

 

 

$

5.37

 

 

$

3.79

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

Basic

 

106.4

 

 

 

112.3

 

 

 

107.9

 

 

Diluted

 

108.4

 

 

 

114.4

 

 

 

110.0

 

 

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Consolidated Highlights and Capital Summary

(in millions unless otherwise noted, unaudited)

2 Qtr 2023

2 Qtr 2022

% Better/
(Worse)

1 Qtr 2023

% Better/
(Worse)

 

 

 

 

 

 

Assets Under Management and Administration

 

 

 

 

Advice & Wealth Management AUM

$

451,249

 

$

396,303

 

14

%

$

431,438

 

5

%

Asset Management AUM

 

616,598

 

 

598,150

 

3

%

 

607,679

 

1

%

Corporate AUM

 

297

 

 

165

 

80

%

 

243

 

22

%

Eliminations

 

(39,308

)

 

(37,453

)

(5

)%

 

(38,091

)

(3

)%

Total Assets Under Management

 

1,028,836

 

 

957,165

 

7

%

 

1,001,269

 

3

%

Total Assets Under Administration

 

247,952

 

 

212,944

 

16

%

 

234,339

 

6

%

Total AUM and AUA

$

1,276,788

 

$

1,170,109

 

9

%

$

1,235,608

 

3

%

 

 

 

 

 

 

S&P 500

 

 

 

 

 

Daily average

 

4,207

 

 

4,110

 

2

%

 

3,998

 

5

%

Period end

 

4,450

 

 

3,785

 

18

%

 

4,109

 

8

%

 

 

 

 

 

 

Weighted Equity Index (WEI) (1)

 

 

 

 

 

Daily average

 

2,769

 

 

2,707

 

2

%

 

2,664

 

4

%

Period end

 

2,900

 

 

2,491

 

16

%

 

2,718

 

7

%

 

 

 

 

 

 

Common shares

 

 

 

 

 

Beginning balance

 

104.4

 

 

110.1

 

(5

)%

 

105.3

 

(1

)%

Repurchases

 

(1.6

)

 

(1.8

)

11

%

 

(1.6

)

-

 

Issuances

 

 

 

0.1

 

NM

 

 

1.1

 

NM

 

Other

 

 

 

 

-

 

 

(0.4

)

NM

 

Total common shares outstanding

 

102.8

 

 

108.4

 

(5

)%

 

104.4

 

(2

)%

Restricted stock units

 

2.7

 

 

2.8

 

(4

)%

 

2.6

 

4

%

Total basic common shares outstanding

 

105.5

 

 

111.2

 

(5

)%

 

107.0

 

(1

)%

Total potentially dilutive shares

 

2.1

 

 

2.1

 

-

 

 

2.0

 

5

%

Total diluted shares

 

107.6

 

 

113.3

 

(5

)%

 

109.0

 

(1

)%

 

 

 

 

 

 

Capital Returned to Shareholders

 

 

 

 

 

Dividends paid

$

146

 

$

142

 

3

%

$

138

 

6

%

Common stock share repurchases

 

492

 

 

458

 

7

%

 

506

 

(3

)%

Total Capital Returned to Shareholders

$

638

 

$

600

 

6

%

$

644

 

(1

)%

 

 

 

 

 

 

(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)

2 Qtr 2023

2 Qtr 2022

% Better/
(Worse)

1 Qtr 2023

% Better/
(Worse)

 

 

 

 

 

 

Revenues

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

Advisory fees

$

1,154

 

$

1,144

 

1

%

$

1,109

 

4

%

Financial planning fees

 

104

 

 

99

 

5

%

 

101

 

3

%

Transaction and other fees

 

96

 

 

97

 

(1

)%

 

89

 

8

%

Total management and financial advice fees

 

1,354

 

 

1,340

 

1

%

 

1,299

 

4

%

Distribution fees:

 

 

 

 

 

Mutual funds

 

179

 

 

186

 

(4

)%

 

175

 

2

%

Insurance and annuity

 

222

 

 

216

 

3

%

 

211

 

5

%

Off-Balance sheet brokerage cash

 

84

 

 

54

 

56

%

 

126

 

(33

)%

Other products

 

84

 

 

86

 

(2

)%

 

81

 

4

%

Total distribution fees

 

569

 

 

542

 

5

%

 

593

 

(4

)%

Net investment income

 

483

 

 

120

 

NM

 

 

409

 

18

%

Other revenues

 

68

 

 

57

 

19

%

 

67

 

1

%

Total revenues

 

2,474

 

 

2,059

 

20

%

 

2,368

 

4

%

Banking and deposit interest expense

 

131

 

 

3

 

NM

 

 

103

 

(27

)%

Adjusted operating total net revenues

 

2,343

 

 

2,056

 

14

%

 

2,265

 

3

%

 

 

 

 

 

 

Expenses

 

 

 

 

 

Distribution expenses

 

1,196

 

 

1,185

 

(1

)%

 

1,173

 

(2

)%

Interest and debt expense

 

6

 

 

3

 

NM

 

 

7

 

14

%

General and administrative expense

 

410

 

 

376

 

(9

)%

 

392

 

(5

)%

Adjusted operating expenses

 

1,612

 

 

1,564

 

(3

)%

 

1,572

 

(3

)%

Pretax adjusted operating earnings

$

731

 

$

492

 

49

%

$

693

 

5

%

 

 

 

 

 

 

Pretax adjusted operating margin

 

31.2

%

 

23.9

%

 

 

30.6

%

 

 

 

 

 

 

 

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)

2 Qtr 2023

2 Qtr 2022

% Better/
(Worse)

1 Qtr 2023

% Better/
(Worse)

 

 

 

 

 

 

AWM Total Client Assets

$

833,347

 

$

735,462

 

13

%

$

798,724

 

4

%

 

 

 

 

 

 

Total Client Flows

$

9,408

 

$

8,572

 

10

%

$

12,261

 

(23

)%

 

 

 

 

 

 

Total Wrap Accounts

 

 

 

 

 

Beginning assets

$

434,674

 

$

447,046

 

(3

)%

$

412,096

 

5

%

Net flows

 

5,610

 

 

6,159

 

(9

)%

 

6,240

 

(10

)%

Market appreciation (depreciation) and other

 

14,405

 

 

(53,918

)

NM

 

 

16,338

 

(12

)%

Total wrap ending assets

$

454,689

 

$

399,287

 

14

%

$

434,674

 

5

%

 

 

 

 

 

 

Advisory wrap account assets ending balance (1)

$

449,857

 

$

395,054

 

14

%

$

430,088

 

5

%

 

 

 

 

 

 

Brokerage Cash & Certificates Balances

 

 

 

 

 

On-balance sheet (Net Investment Income)

 

 

 

 

 

On-balance sheet - broker dealer

$

2,605

 

$

3,542

 

(26

)%

$

2,854

 

(9

)%

On-balance sheet - bank

 

20,933

 

 

15,520

 

35

%

 

20,008

 

5

%

On-balance sheet - certificate

 

12,069

 

 

5,284

 

NM

 

 

11,102

 

9

%

Total on-balance sheet

$

35,607

 

$

24,346

 

46

%

$

33,964

 

5

%

Off-balance sheet (Distribution Fees)

 

 

 

 

 

Off-balance sheet - broker dealer

$

6,413

 

$

23,102

 

(72

)%

$

10,350

 

(38

)%

Total brokerage cash & certificates balances

$

42,020

 

$

47,448

 

(11

)%

$

44,314

 

(5

)%

 

 

 

 

 

 

Gross Fee Yield

 

 

 

 

 

On-balance sheet - broker dealer

 

4.72

%

 

0.49

%

 

 

4.27

%

 

On-balance sheet - bank

 

4.76

%

 

2.00

%

 

 

4.46

%

 

On-balance sheet - certificates

 

5.20

%

 

1.53

%

 

 

4.86

%

 

Off-balance sheet - broker dealer

 

4.14

%

 

0.90

%

 

 

3.86

%

 

 

 

 

 

 

 

Financial Advisors

 

 

 

 

 

Employee advisors

 

2,108

 

 

2,096

 

1

%

 

2,099

 

-

 

Franchisee advisors

 

8,166

 

 

8,149

 

-

 

 

8,160

 

-

 

Total financial advisors

 

10,274

 

 

10,245

 

-

 

 

10,259

 

-

 

 

 

 

 

 

 

Advisor Retention

 

 

 

 

 

Employee

 

92.0

%

 

92.3

%

 

 

92.8

%

 

Franchisee

 

93.0

%

 

94.4

%

 

 

93.6

%

 

 

 

 

 

 

 

(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)

2 Qtr 2023

2 Qtr 2022

% Better/
(Worse)

1 Qtr 2023

% Better/
(Worse)

 

 

 

 

 

 

Revenues

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

Asset management fees:

 

 

 

 

 

Retail

$

490

 

$

543

 

(10

)%

$

491

 

-

 

Institutional

 

157

 

 

173

 

(9

)%

 

152

 

3

%

Transaction and other fees

 

48

 

 

54

 

(11

)%

 

48

 

-

 

Revenue from other sources (1)

 

4

 

 

7

 

(43

)%

 

3

 

33

%

Total management and financial advice fees

 

699

 

 

777

 

(10

)%

 

694

 

1

%

Distribution fees:

 

 

 

 

 

Mutual funds

 

51

 

 

58

 

(12

)%

 

52

 

(2

)%

Insurance and annuity

 

39

 

 

42

 

(7

)%

 

38

 

3

%

Total distribution fees

 

90

 

 

100

 

(10

)%

 

90

 

-

 

Net investment income

 

10

 

 

 

-

 

 

9

 

11

%

Other revenues

 

9

 

 

4

 

NM

 

 

6

 

50

%

Total revenues

 

808

 

 

881

 

(8

)%

 

799

 

1

%

Banking and deposit interest expense

 

 

 

 

-

 

 

 

-

 

Adjusted operating total net revenues

 

808

 

 

881

 

(8

)%

 

799

 

1

%

 

 

 

 

 

 

Expenses

 

 

 

 

 

Distribution expenses

 

233

 

 

252

 

8

%

 

230

 

(1

)%

Amortization of deferred acquisition costs

 

2

 

 

3

 

33

%

 

1

 

NM

 

Interest and debt expense

 

1

 

 

1

 

-

 

 

2

 

50

%

General and administrative expense

 

410

 

 

403

 

(2

)%

 

401

 

(2

)%

Adjusted operating expenses

 

646

 

 

659

 

2

%

 

634

 

(2

)%

Pretax adjusted operating earnings

$

162

 

$

222

 

(27

)%

$

165

 

(2

)%

 

 

 

 

 

 

Net Pretax Adjusted Operating Margin Reconciliation

 

 

 

 

Adjusted operating total net revenues

$

808

 

$

881

 

(8

)%

$

799

 

1

%

Distribution pass through revenues

 

(183

)

 

(200

)

9

%

 

(182

)

(1

)%

Subadvisory and other pass through revenues

 

(95

)

 

(91

)

(4

)%

 

(95

)

-

 

Net adjusted operating revenues

$

530

 

$

590

 

(10

)%

$

522

 

2

%

 

 

 

 

 

 

Pretax adjusted operating earnings

$

162

 

$

222

 

(27

)%

$

165

 

(2

)%

Adjusted operating net investment income

 

(10

)

 

 

-

 

 

(9

)

(11

)%

Amortization of intangibles

 

6

 

 

5

 

20

%

 

6

 

-

 

Net adjusted operating earnings

$

158

 

$

227

 

(30

)%

$

162

 

(2

)%

 

 

 

 

 

 

Pretax adjusted operating margin

 

20.0

%

 

25.2

%

 

 

20.7

%

 

Net pretax adjusted operating margin (2)

 

29.8

%

 

38.5

%

 

 

31.0

%

 

 

 

 

 

 

 

Performance fees (3)

 

 

 

 

 

Performance fees

$

1

 

$

5

 

(80

)%

$

5

 

(80

)%

General and administrative expense related to performance fees

 

1

 

 

2

 

50

%

 

2

 

50

%

Net performance fees

$

 

$

3

 

NM

 

$

3

 

NM

 

 

 

 

 

 

 

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

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

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

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

 

Ameriprise Financial, Inc.

Asset Management Segment Operating Metrics

(in millions, unaudited)

2 Qtr 2023

2 Qtr 2022

% Better/
(Worse)

1 Qtr 2023

% Better/
(Worse)

 

 

 

 

 

 

Managed Assets Rollforward

 

 

 

 

 

Global Retail Funds

 

 

 

 

 

Beginning assets

$

321,391

 

$

379,985

 

(15

)%

$

309,293

 

4

%

Inflows

 

11,547

 

 

15,572

 

(26

)%

 

12,096

 

(5

)%

Outflows

 

(16,323

)

 

(23,725

)

31

%

 

(16,394

)

-

 

Net VP/VIT fund flows

 

(1,270

)

 

(1,043

)

(22

)%

 

(1,187

)

(7

)%

Net new flows

 

(6,046

)

 

(9,196

)

34

%

 

(5,485

)

(10

)%

Reinvested dividends

 

1,265

 

 

3,403

 

(63

)%

 

842

 

50

%

Net flows

 

(4,781

)

 

(5,793

)

17

%

 

(4,643

)

(3

)%

Distributions

 

(1,544

)

 

(3,812

)

59

%

 

(1,008

)

(53

)%

Market appreciation (depreciation) and other

 

9,885

 

 

(43,104

)

NM

 

 

16,074

 

(39

)%

Foreign currency translation (1)

 

2,469

 

 

(4,338

)

NM

 

 

1,675

 

47

%

Total ending assets

 

327,420

 

 

322,938

 

1

%

 

321,391

 

2

%

% of total retail assets sub-advised

 

15.9

%

 

14.9

%

 

 

15.7

%

 

 

 

 

 

 

 

Global Institutional

 

 

 

 

 

Beginning assets

 

286,288

 

 

318,622

 

(10

)%

 

274,736

 

4

%

Inflows (2)

 

11,708

 

 

16,108

 

(27

)%

 

12,759

 

(8

)%

Outflows (2)

 

(12,180

)

 

(13,365

)

9

%

 

(10,645

)

(14

)%

Net flows

 

(472

)

 

2,743

 

NM

 

 

2,114

 

NM

 

Market appreciation (depreciation) and other (3)

 

(1,852

)

 

(36,473

)

95

%

 

6,322

 

NM

 

Foreign currency translation (1)

 

5,214

 

 

(9,680

)

NM

 

 

3,116

 

67

%

Total ending assets

 

289,178

 

 

275,212

 

5

%

 

286,288

 

1

%

 

 

 

 

 

 

Total managed assets

$

616,598

 

$

598,150

 

3

%

$

607,679

 

1

%

 

 

 

 

 

 

Total net flows

$

(5,253

)

$

(3,050

)

(72

)%

$

(2,529

)

NM

 

 

 

 

 

 

 

Legacy insurance partners flows

$

(1,377

)

$

(1,212

)

(14

)%

$

(799

)

(72

)%

 

 

 

 

 

 

Total Assets Under Advisement (4)

$

25,282

 

$

26,481

 

(5

)%

$

24,343

 

4

%

Model delivery AUA flows (5)

$

402

 

$

441

 

(9

)%

$

(244

)

NM

 

 

 

 

 

 

 

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

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

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

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

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

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

 

Ameriprise Financial, Inc.

Asset Management Segment Operating Metrics

(in millions, unaudited)

2 Qtr 2023

2 Qtr 2022

% Better/
(Worse)

1 Qtr 2023

% Better/
(Worse)

 

 

 

 

 

 

 

 

 

Total Managed Assets by Type

 

 

 

 

 

 

 

 

Equity

$

316,092

 

$

306,044

 

3

%

$

308,968

 

2

%

Fixed income

 

225,520

 

 

216,445

 

4

%

 

224,666

 

-

 

Money market

 

22,439

 

 

19,334

 

16

%

 

22,218

 

1

%

Alternative

 

35,088

 

 

38,370

 

(9

)%

 

34,724

 

1

%

Hybrid and other

 

17,459

 

 

17,957

 

(3

)%

 

17,103

 

2

%

Total managed assets by type

$

616,598

 

$

598,150

 

3

%

$

607,679

 

1

%

 

 

 

 

 

 

 

 

 

Average Managed Assets by Type (1)

 

 

 

 

 

 

 

 

Equity

$

309,576

 

$

336,754

 

(8

)%

$

308,576

 

-

 

Fixed income

 

223,766

 

 

235,580

 

(5

)%

 

217,792

 

3

%

Money market

 

22,945

 

 

16,489

 

39

%

 

22,083

 

4

%

Alternative

 

34,888

 

 

39,395

 

(11

)%

 

34,668

 

1

%

Hybrid and other

 

17,152

 

 

19,476

 

(12

)%

 

16,945

 

1

%

Total average managed assets by type

$

608,327

 

$

647,694

 

(6

)%

$

600,064

 

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

 

2 Qtr 2023

 

 

 

 

 

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

1 year

3 year

5 year

10 year

Equity

68

%

67

%

77

%

87

%

Fixed Income

47

%

70

%

75

%

86

%

Asset Allocation

65

%

51

%

75

%

90

%

 

 

 

 

 

4- or 5-star Morningstar rated funds

Overall

3 year

5 year

10 year

Number of Rated Funds

115

 

73

 

93

 

105

 

Percent of Rated Assets

64

%

29

%

54

%

68

%

 

 

 

 

 

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 06/30/23. Columbia funds are available for purchase by U.S. customers. Out of 100 Columbia funds rated (based on primary share class), 2 received a 5-star Overall Rating and 40 received a 4-star Overall Rating. Out of 151 Threadneedle funds rated (based on highest-rated share class), 13 received a 5-star Overall Rating and 60 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)

2 Qtr 2023

 

2 Qtr 2022

% Better/
(Worse)

1 Qtr 2023

% Better/
(Worse)

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

185

 

 

$

197

 

(6

)%

$

183

 

1

%

Distribution fees

 

100

 

 

 

107

 

(7

)%

 

97

 

3

%

Net investment income

 

203

 

 

 

124

 

64

%

 

195

 

4

%

Premiums, policy and contract charges

 

368

 

 

 

328

 

12

%

 

346

 

6

%

Other revenues

 

2

 

 

 

4

 

(50

)%

 

3

 

(33

)%

Total revenues

 

858

 

 

 

760

 

13

%

 

824

 

4

%

Banking and deposit interest expense

 

 

 

 

 

-

 

 

 

-

 

Adjusted operating total net revenues

 

858

 

 

 

760

 

13

%

 

824

 

4

%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

120

 

 

 

118

 

(2

)%

 

110

 

(9

)%

Interest credited to fixed accounts

 

94

 

 

 

96

 

2

%

 

88

 

(7

)%

Benefits, claims, losses and settlement expenses

 

188

 

 

 

108

 

(74

)%

 

162

 

(16

)%

Remeasurement (gains) losses of future policy benefit reserves

 

(4

)

 

 

(3

)

33

%

 

(3

)

33

%

Change in fair value of market risk benefits

 

123

 

 

 

129

 

5

%

 

115

 

(7

)%

Amortization of deferred acquisition costs

 

57

 

 

 

61

 

7

%

 

58

 

2

%

Interest and debt expense

 

12

 

 

 

9

 

(33

)%

 

13

 

8

%

General and administrative expense

 

79

 

 

 

74

 

(7

)%

 

87

 

9

%

Adjusted operating expenses

 

669

 

 

 

592

 

(13

)%

 

630

 

(6

)%

Pretax adjusted operating earnings

$

189

 

 

$

168

 

13

%

$

194

 

(3

)%

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

Retirement & Protection Solutions Segment Operating Metrics

(in millions, unaudited)

2 Qtr 2023

 

2 Qtr 2022

% Better/
(Worse)

1 Qtr 2023

% Better/
(Worse)

 

 

 

 

 

 

 

Variable Annuities Rollforwards

 

 

 

 

 

 

Beginning balance

$

76,809

 

 

$

85,759

 

(10

)%

$

74,385

 

3

%

Deposit

 

940

 

 

 

1,126

 

(17

)%

 

874

 

8

%

Withdrawals and terminations

 

(1,712

)

 

 

(1,514

)

(13

)%

 

(1,623

)

(5

)%

Net flows

 

(772

)

 

 

(388

)

(99

)%

 

(749

)

(3

)%

Investment performance and interest credited

 

2,512

 

 

 

(9,684

)

NM

 

 

3,173

 

(21

)%

Total ending balance - contract accumulation values

$

78,549

 

 

$

75,687

 

4

%

$

76,809

 

2

%

 

 

 

 

 

 

 

Variable annuities fixed sub-accounts

$

4,524

 

 

$

4,931

 

(8

)%

$

4,644

 

(3

)%

 

 

 

 

 

 

 

Life Insurance In Force

$

198,686

 

 

$

198,546

 

-

 

$

198,707

 

-

 

 

 

 

 

 

 

 

Net Amount at Risk (Life)

$

37,708

 

 

$

38,973

 

(3

)%

$

38,120

 

(1

)%

 

 

 

 

 

 

 

Net Policyholder Reserves

 

 

 

 

 

 

VUL/UL

$

14,170

 

 

$

13,140

 

8

%

$

13,783

 

3

%

Term and whole life

 

188

 

 

 

204

 

(8

)%

 

195

 

(4

)%

Disability insurance

 

539

 

 

 

575

 

(6

)%

 

552

 

(2

)%

Other insurance

 

548

 

 

 

576

 

(5

)%

 

552

 

(1

)%

Total net policyholder reserves

$

15,445

 

 

$

14,495

 

7

%

$

15,082

 

2

%

 

 

 

 

 

 

 

DAC Ending Balances

 

 

 

 

 

 

Variable Annuities DAC

$

1,722

 

 

$

1,770

 

(3

)%

$

1,733

 

(1

)%

Life and Health DAC

$

964

 

 

$

983

 

(2

)%

$

967

 

-

 

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Corporate Segment Adjusted Operating Results and Metrics

(in millions, unaudited)

2 Qtr 2023

 

2 Qtr 2022

% Better/
(Worse)

1 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

 

24

 

 

 

(6

)

NM

 

 

(1

)

NM

 

Premiums, policy and contract charges

 

 

 

 

 

-

 

 

 

-

 

Other revenues

 

 

 

 

(1

)

NM

 

 

2

 

NM

 

Total revenues

 

24

 

 

 

(7

)

NM

 

 

1

 

NM

 

Banking and deposit interest expense

 

3

 

 

 

 

-

 

 

4

 

25

%

Adjusted operating total net revenues

 

21

 

 

 

(7

)

NM

 

 

(3

)

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

 

27

 

 

 

13

 

NM

 

 

16

 

(69

)%

General and administrative expense

 

50

 

 

 

28

 

(79

)%

 

54

 

7

%

Adjusted operating expenses

 

77

 

 

 

41

 

(88

)%

 

70

 

(10

)%

Pretax adjusted operating earnings (loss)

$

(56

)

 

$

(48

)

(17

)%

$

(73

)

23

%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

Corporate Segment Adjusted Operating Results and Metrics

(in millions, unaudited)

2 Qtr 2023

 

2 Qtr 2022

% Better/
(Worse)

1 Qtr 2023

% Better/
(Worse)

 

 

 

 

 

 

 

Long Term Care Adjusted Operating Income Statements

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

 

 

$

 

-

 

$

 

-

 

Distribution fees

 

 

 

 

 

-

 

 

 

-

 

Net investment income

 

44

 

 

 

37

 

19

%

 

44

 

-

 

Premiums, policy and contract charges

 

23

 

 

 

24

 

(4

)%

 

23

 

-

 

Other revenues

 

 

 

 

 

-

 

 

 

-

 

Total revenues

 

67

 

 

 

61

 

10

%

 

67

 

-

 

Banking and deposit interest expense

 

 

 

 

 

-

 

 

 

-

 

Adjusted operating total net revenues

 

67

 

 

 

61

 

10

%

 

67

 

-

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

(2

)

 

 

(4

)

(50

)%

 

(3

)

(33

)%

Interest credited to fixed accounts

 

 

 

 

 

-

 

 

 

-

 

Benefits, claims, losses and settlement expenses

 

58

 

 

 

58

 

-

 

 

56

 

(4

)%

Remeasurement (gains) losses of future policy benefit reserves

 

4

 

 

 

4

 

-

 

 

(2

)

NM

 

Change in fair value of market risk benefits

 

 

 

 

 

-

 

 

 

-

 

Amortization of deferred acquisition costs

 

 

 

 

 

-

 

 

 

-

 

Interest and debt expense

 

1

 

 

 

2

 

50

%

 

2

 

50

%

General and administrative expense

 

5

 

 

 

7

 

29

%

 

6

 

17

%

Adjusted operating expenses

 

66

 

 

 

67

 

1

%

 

59

 

(12

)%

Pretax adjusted operating earnings (loss)

$

1

 

 

$

(6

)

NM

 

$

8

 

(88

)%

 

 

 

 

 

 

 

Long Term Care Policyholder Reserves, net of reinsurance

$

2,616

 

 

$

2,722

 

(4

)%

$

2,659

 

(2

)%

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Corporate Segment Adjusted Operating Results and Metrics

(in millions, unaudited)

2 Qtr 2023

2 Qtr 2022

% Better/
(Worse)

1 Qtr 2023

% Better/
(Worse)

 

 

 

 

 

 

 

 

 

Fixed Annuities Adjusted Operating Income Statements

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

Management and financial advice fees

$

 

 

$

 

 

-

 

$

 

 

-

 

Distribution fees

 

 

 

 

 

 

-

 

 

 

 

-

 

Net investment income

 

8

 

 

 

8

 

 

-

 

 

8

 

 

-

 

Premiums, policy and contract charges

 

 

 

 

 

 

-

 

 

1

 

 

NM

 

Other revenues

 

52

 

 

 

57

 

 

(9

)%

 

53

 

 

(2

)%

Total revenues

 

60

 

 

 

65

 

 

(8

)%

 

62

 

 

(3

)%

Banking and deposit interest expense

 

 

 

 

 

 

-

 

 

 

 

-

 

Adjusted operating total net revenues

 

60

 

 

 

65

 

 

(8

)%

 

62

 

 

(3

)%

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

1

 

 

NM

 

 

1

 

 

NM

 

Interest credited to fixed accounts

 

57

 

 

 

60

 

 

5

%

 

61

 

 

7

%

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

-

 

 

2

 

 

NM

 

Remeasurement (gains) losses of future policy benefit reserves

 

 

 

 

 

 

-

 

 

 

 

-

 

Change in fair value of market risk benefits

 

 

 

 

 

 

-

 

 

 

 

-

 

Amortization of deferred acquisition costs

 

2

 

 

 

3

 

 

33

%

 

3

 

 

33

%

Interest and debt expense

 

1

 

 

 

 

 

-

 

 

 

 

-

 

General and administrative expense

 

5

 

 

 

6

 

 

17

%

 

4

 

 

(25

)%

Adjusted operating expenses

 

65

 

 

 

70

 

 

7

%

 

71

 

 

8

%

Pretax adjusted operating earnings (loss)

$

(5

)

 

$

(5

)

 

-

 

$

(9

)

 

44

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Ameriprise Financial, Inc.

Eliminations (1) Adjusted Operating Results

(in millions, unaudited)

2 Qtr 2023

 

2 Qtr 2022

% Better/
(Worse)

1 Qtr 2023

% Better/
(Worse)

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

(37

)

 

$

(36

)

(3

)%

$

(37

)

-

 

Distribution fees

 

(277

)

 

 

(290

)

4

%

 

(263

)

(5

)%

Net investment income

 

(12

)

 

 

(3

)

NM

 

 

(12

)

-

 

Premiums, policy and contract charges

 

(8

)

 

 

(8

)

-

 

 

(8

)

-

 

Other revenues

 

 

 

 

 

-

 

 

 

-

 

Total revenues

 

(334

)

 

 

(337

)

1

%

 

(320

)

(4

)%

Banking and deposit interest expense

 

(3

)

 

 

 

-

 

 

(4

)

(25

)%

Adjusted operating total net revenues

 

(331

)

 

 

(337

)

2

%

 

(316

)

(5

)%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

(299

)

 

 

(313

)

(4

)%

 

(285

)

5

%

Interest credited to fixed accounts

 

 

 

 

 

-

 

 

 

-

 

Benefits, claims, losses and settlement expenses

 

(5

)

 

 

(5

)

-

 

 

(5

)

-

 

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

 

 

(8

)

13

%

General and administrative expense

 

(18

)

 

 

(16

)

13

%

 

(18

)

-

 

Adjusted operating expenses

 

(331

)

 

 

(337

)

(2

)%

 

(316

)

5

%

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)

June 30,
2023

June 30,
2022

March 31,
2023

 

 

 

 

 

 

Long-term Debt Summary

 

 

 

 

 

Senior notes

$

3,550

 

 

$

2,800

 

 

$

3,550

 

Finance lease liabilities

 

23

 

 

 

35

 

 

 

28

 

Other (1)

 

(16

)

 

 

(11

)

 

 

(18

)

Total Ameriprise Financial long-term debt

 

3,557

 

 

 

2,824

 

 

 

3,560

 

Non-recourse debt of consolidated investment entities

 

2,264

 

 

 

2,078

 

 

 

2,367

 

Total long-term debt

$

5,821

 

 

$

4,902

 

 

$

5,927

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt

$

3,557

 

 

$

2,824

 

 

$

3,560

 

Finance lease liabilities

 

(23

)

 

 

(35

)

 

 

(28

)

Other (1)

 

16

 

 

 

11

 

 

 

18

 

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

$

3,550

 

 

$

2,800

 

 

$

3,550

 

 

 

 

 

 

 

Total equity (2)

$

4,080

 

 

$

4,070

 

 

$

4,144

 

Equity of consolidated investment entities

 

(10

)

 

 

(6

)

 

 

(8

)

Total equity excluding CIEs

$

4,070

 

 

$

4,064

 

 

$

4,136

 

 

 

 

 

 

 

Total Ameriprise Financial capital

$

7,637

 

 

$

6,894

 

 

$

7,704

 

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

$

7,620

 

 

$

6,864

 

 

$

7,686

 

 

 

 

 

 

 

Debt to capital

 

 

 

 

 

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

 

46.6

 

%

 

41.0

 

%

 

46.2

%

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

 

46.6

 

%

 

40.8

 

%

 

46.2

%

 

 

 

 

 

 

Available Capital for Capital Adequacy

$

5,011

 

 

$

5,294

 

 

$

5,377

 

 

 

 

 

 

 

(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)

June 30,
2023

 

December 31,
2022

 

 

 

 

Assets

 

 

 

Cash and cash equivalents

$

7,343

 

 

$

6,964

 

Cash of consolidated investment entities

 

135

 

 

 

133

 

Investments

 

51,376

 

 

 

44,524

 

Investments of consolidated investment entities

 

2,191

 

 

 

2,354

 

Market risk benefits

 

1,346

 

 

 

1,015

 

Separate account assets

 

76,874

 

 

 

73,962

 

Receivables

 

15,064

 

 

 

15,595

 

Receivables of consolidated investment entities

 

27

 

 

 

20

 

Deferred acquisition costs

 

2,737

 

 

 

2,777

 

Restricted and segregated cash and investments

 

1,612

 

 

 

2,229

 

Other assets

 

11,074

 

 

 

9,277