Ameriprise Financial Reports Fourth Quarter 2023 Results
Ameriprise Financial, Inc. (NYSE: AMP) reported strong Q4 2023 results with GAAP net income of $377 million, adjusted operating earnings of $761 million, and adjusted operating earnings per diluted share of $7.20, representing a 10% increase. The company returned $2.5 billion to shareholders in 2023 and successfully closed a partnership with Comerica Bank. Assets under management and administration reached $1.4 trillion, up 15% from client net inflows and market appreciation.
Positive
Strong Q4 2023 results with a 10% increase in adjusted operating earnings per diluted share
Successful partnership with Comerica Bank and $2.5 billion returned to shareholders in 2023
Assets under management and administration reached $1.4 trillion, up 15% from client net inflows and market appreciation
Negative
Q4 2023 GAAP net income per diluted share declined to $3.57 from $5.83 a year ago
Full year 2023 GAAP net income per diluted share decreased to $23.71 from $27.70 in 2022
The reported earnings per share (EPS) and return on equity (ROE) for Ameriprise Financial reflect a robust financial performance, with adjusted operating EPS showing a significant increase of 14 percent. This indicates that the company has been effective in growing its earnings and managing expenses, which is a positive signal for investors looking for profitability and operational efficiency. The strong free cash flow generation and the company's ability to return capital to shareholders at a differentiated rate suggest a healthy balance sheet and liquidity position. Moreover, the growth investments and the successful closure of the partnership with Comerica Bank may enhance Ameriprise's competitive positioning and future revenue streams.
Ameriprise Financial's assets under management and administration increased by 15 percent, which is a key indicator of the company's ability to attract and retain clients. The growth in client assets is a reflection of strong client net inflows and market appreciation, which may bolster investor confidence in the company's advisory and wealth management capabilities. The Advice & Wealth Management segment's performance, with an 11 percent increase in net revenue per advisor, suggests that Ameriprise's advisors are becoming more productive, which could translate into higher revenue per client. This is particularly relevant in the current environment where personalized financial advice is in high demand.
The economic implications of Ameriprise's financial results extend beyond the company to indicate broader market trends. The company's performance, particularly in the context of market appreciation and client net inflows, suggests a resilient financial services sector amid economic uncertainties. The stability of the underlying fee rate at 46 basis points and disciplined expense management, despite market volatility and interest rate changes, indicate Ameriprise's strategic focus on maintaining profitability. Additionally, the company's operating effective tax rate and its management in light of a regulatory accrual reflect a comprehensive approach to fiscal responsibilities, which is crucial for long-term sustainability.
01/24/2024 - 04:08 PM
MINNEAPOLIS --(BUSINESS WIRE)--
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 $7.75 $0.28 $0.14 $0.13
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 $5.83 $23.71 $27.70
Full year 2023 adjusted operating earnings per diluted share increased 24 percent to $30.46
Adjusted operating net revenues increased 8 percent from organic growth and higher spread revenues.
Assets under management and administration reached $1.4 trillion
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 $2.5 billion
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
In addition, adjusted operating after-tax results in the quarter included a $30 million $15 million $14 million
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 $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 $728 million
Adjusted operating net revenues increased 8 percent to $2.4 billion
Adjusted operating expenses increased 9 percent to $1.7 billion $401 million
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 $53 billion
Cash balances increased 10 percent to $44.5 billion $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
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 $194 million
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
In the quarter, net outflows were $5.2 billion $1.2 billion
Retail net outflows were $0.9 billion
Global institutional outflows were $3.1 billion
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
Retirement & Protection Solutions sales increased 19 percent, primarily from strong sales growth in structured variable annuities. Protection sales grew 6 percent to $72 million
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 $19 million $9 million $89 million
Revenues declined $11 million
Long Term Care pretax adjusted operating earnings improved to $10 million
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 $2.0 billion $2.5 billion
(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)
Per Diluted Share
Year-to-date
December 31,
% Better/
(Worse)
(in millions, except per share amounts, unaudited)
2023
2022
2023
2022
Net income
$
2,556
$
3,149
(19)%
$
23.71
$
27.70
(14)%
Adjustments:
Net realized investment gains (losses) (1)
(32
)
(93
)
(0.30
)
(0.82
)
Market impact on non-traditional long-duration products (1)
(608
)
483
(5.63
)
4.25
Mean reversion-related impacts (1)
—
(1
)
—
(0.01
)
Integration/restructuring charges (1)
(62
)
(50
)
(0.58
)
(0.44
)
Net income (loss) attributable to consolidated investment entities
—
(4
)
—
(0.04
)
Tax effect of adjustments (2)
147
(71
)
1.36
(0.61
)
Adjusted operating earnings
$
3,111
$
2,885
8%
$
28.86
$
25.37
14%
Pretax impact of annual unlocking
(99
)
135
(0.91
)
1.19
Tax effect of annual unlocking (2)
21
(28
)
0.19
(0.25
)
Adjusted operating earnings excluding unlocking
$
3,189
$
2,778
15%
$
29.58
$
24.43
21%
Pretax impact of regulatory accrual, severance, and mark-to-market impact on share-based compensation expense (3)
(101
)
(10
)
(0.94
)
(0.09
)
Tax effect of regulatory accrual, severance, and mark-to-market impact on share-based compensation expense (4)
6
—
0.06
—
Adjusted operating earnings excluding unlocking and regulatory accrual, severance, and mark-to-market impact on share-based compensation expense
$
3,284
$
2,788
18%
$
30.46
$
24.52
24%
Weighted average common shares outstanding:
Basic
105.7
111.3
Diluted
107.8
113.7
(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: Pretax Adjusted Operating Earnings
Quarter Ended December 31,
(in millions, unaudited)
2023
2022
Total net revenues
$
3,992
$
3,663
Adjustments:
Net realized investment gains (losses)
—
(7
)
Market impact on non-traditional long-duration products
(2
)
(3
)
Mean Reversion related impacts
—
—
CIEs revenue
46
31
Adjusted operating total net revenues
$
3,948
$
3,642
Total expenses
$
3,498
$
2,846
Adjustments:
CIEs expenses
46
34
Integration/restructuring charges
15
15
Market impact on non-traditional long-duration products
469
80
Mean reversion-related impacts
—
(2
)
Adjusted operating expenses
$
2,968
$
2,719
Regulatory accrual, severance, and mark-to-market impact on share-based compensation expense (1)
63
23
Adjusted operating expenses excluding regulatory accrual, severance, and mark-to-market impact on share-based compensation expense
$
2,905
$
2,696
Pretax income
$
494
$
817
Pretax adjusted operating earnings
$
980
$
923
Pretax adjusted operating earnings excluding regulatory accrual, severance, and mark-to-market impact on share-based compensation expense
$
1,043
$
946
Pretax income margin
12.4
%
22.3
%
Pretax adjusted operating margin
24.8
%
25.3
%
Pretax adjusted operating margin excluding regulatory accrual, severance, and mark-to-market impact on share-based compensation expense
26.4
%
26.0
%
(1) 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.
Ameriprise Financial, Inc.
Reconciliation Table: Available Capital for Capital Adequacy
(in millions, unaudited)
December 31,
2023
December 31,
2022
September 30,
2023
Ameriprise Financial GAAP Equity
$
4,729
$
3,803
$
3,825
Less: AOCI
(1,766
)
(2,546
)
(2,840
)
Ameriprise Financial GAAP Equity, excl AOCI
6,495
6,349
6,665
Less: RiverSource Life Insurance Co. GAAP Equity, excluding AOCI
1,851
2,057
2,084
Add: RiverSource Life Insurance Co. statutory total adjusted capital
3,093
3,103
2,842
Less: Goodwill and intangibles
2,622
2,485
2,487
Add: Other adjustments
303
299
311
Available Capital for Capital Adequacy
$
5,418
$
5,209
$
5,247
Ameriprise Financial, Inc.
Reconciliation Table: General and Administrative Expense
Quarter Ended December 31,
% Better/
(Worse)
(in millions, unaudited)
2023
2022
Total G&A Expense
$
1,001
$
941
(6)%
Less: Regulatory accrual, severance, and mark-to-market impact on share-based compensation expense (1)
63
23
Total G&A Expense excluding regulatory accrual, severance, and mark-to-market impact on share-based compensation expense
$
938
$
918
(2)%
(1) 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.
Ameriprise Financial, Inc.
Reconciliation Table: Effective Tax Rate
Quarter Ended
December 31, 2022
(in millions, unaudited)
GAAP
Adjusted
Operating
Pretax income
$
817
$
923
Income tax provision
$
168
$
191
Effective tax rate
20.6
%
20.7
%
Ameriprise Financial, Inc.
Reconciliation Table: Effective Tax Rate
Quarter Ended
December 31, 2023
(in millions, unaudited)
GAAP
Adjusted Operating
Pretax income
$
494
$
980
Income tax provision
$
117
$
219
Pretax income excluding accrual for regulatory matter
$
1,010
Income tax provision
$
219
Effective tax rate
23.8
%
22.3
%
Effective tax rate excluding accrual for regulatory matter
21.7
%
Ameriprise Financial, Inc.
Reconciliation Table: Effective Tax Rate
Year-to-date
December 31, 2023
(in millions, unaudited)
GAAP
Adjusted Operating
Pretax income
$
3,234
$
3,936
Income tax provision
$
678
$
825
Pretax income excluding accrual for regulatory matter
$
3,986
Income tax provision
$
825
Effective tax rate
21.0
%
21.0
%
Effective tax rate excluding accrual for regulatory matter
20.7
%
Ameriprise Financial, Inc.
Reconciliation Table: Advice & Wealth Management Operating Margin
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
Interest and debt expense
8
2
General and administrative expenses
431
406
Adjusted operating expenses
1,705
1,561
(9)%
Less: Regulatory accrual
30
—
Adjusted operating expenses excluding accrual for regulatory matter
1,675
1,561
(7)%
Pretax adjusted operating earnings
$
698
$
665
5%
Pretax adjusted operating earnings excluding accrual for regulatory matter
$
728
$
665
9%
Pretax adjusted operating margin
29.0
%
29.9
%
(90)bps
Pretax adjusted operating margin excluding accrual for regulatory matter
30.3
%
29.9
%
40bps
Ameriprise Financial, Inc.
Reconciliation Table: Advice & Wealth Management General and Administrative Expense
Quarter Ended December 31,
% Better/
(Worse)
(in millions, unaudited)
2023
2022
Total G&A Expense
$
431
$
406
(6)%
Less: Regulatory accrual
30
—
Total G&A Expense excluding accrual for regulatory matter
$
401
$
406
1%
Ameriprise Financial, Inc.
Reconciliation Table: Asset Management General and Administrative Expense
Quarter Ended December 31,
% Better/
(Worse)
(in millions, unaudited)
2023
2022
Total G&A Expense
$
419
$
408
(3)%
Less: Impact of performance fee compensation
23
3
Less: Impact of foreign exchange translation
9
—
Total G&A Expense excluding impact of foreign exchange translation and performance fee compensation
$
387
$
405
4%
Ameriprise Financial, Inc.
Reconciliation Table: Corporate & Other Excluding Closed Blocks Adjusted Operating Earnings
Quarter Ended December 31,
% Better/
(Worse)
(in millions, unaudited)
2023
2022
Corporate & Other excluding Closed Blocks adjusted operating earnings (loss)
$
(117
)
$
(81
)
(44)%
Less: Regulatory accrual, severance, and mark-to-market impact on share-based compensation expense (1)
(28
)
(15
)
Corporate & Other adjusted operating earnings (loss) excluding regulatory accrual, severance, and mark-to-market impact on share-based compensation expense
$
(89
)
$
(66
)
(35)%
(1) 2023 includes severance expense and mark-to-market impact on share-based compensation expense. 2022 includes only mark-to-market impact on share-based compensation expense.
Ameriprise Financial, Inc.
Reconciliation Table: Return on Equity (ROE) Excluding Accumulated
Other Comprehensive Income “AOCI”
Twelve Months Ended
December 31,
(in millions, unaudited)
2023
2022
Net income
$
2,556
$
3,149
Less: Adjustments (1)
(555
)
264
Adjusted operating earnings
3,111
2,885
Less: Annual unlocking (2)
(78
)
107
Adjusted operating earnings excluding unlocking
$
3,189
$
2,778
Total Ameriprise Financial, Inc. shareholders’ equity
$
4,116
$
4,170
Less: Accumulated other comprehensive income, net of tax
(2,297
)
(1,769
)
Total Ameriprise Financial, Inc. shareholders’ equity excluding AOCI
6,413
5,939
Less: Equity impacts attributable to the consolidated investment entities
(4
)
—
Adjusted operating equity
$
6,417
$
5,939
Return on equity excluding AOCI
39.9
%
53.0
%
Adjusted operating return on equity excluding AOCI (3)
48.5
%
48.6
%
Adjusted operating return on equity excluding AOCI and unlocking (3)
49.7
%
46.8
%
(1) Adjustments reflect the sum of after-tax net realized investment gains/losses, net of the reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and related reinsurance accrual; mean reversion related impacts; block transfer reinsurance transaction impacts; the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments; gain or loss on disposal of a business that is not considered discontinued operations; integration and restructuring charges; income (loss) from discontinued operations; and net income (loss) from consolidated investment entities. After-tax is calculated using the statutory tax rate of 21% .
(2) After-tax is calculated using the statutory tax rate of 21% .
(3) Adjusted operating return on equity, excluding AOCI is calculated using adjusted operating earnings in the numerator, and Ameriprise Financial shareholders’ equity, excluding AOCI and the impact of consolidating investment entities using a five-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory tax rate of 21% .
View source version on businesswire.com: https://www.businesswire.com/news/home/20240124740511/en/
Investor Relations:
Alicia A. Charity
alicia.a.charity@ampf.com
Stephanie M. Rabe
stephanie.m.rabe@ampf.com
Media Relations:
Paul W. Johnson
paul.w.johnson@ampf.com
Source: Ameriprise Financial, Inc.
What is the ticker symbol for Ameriprise Financial, Inc.?
The ticker symbol for Ameriprise Financial, Inc. is AMP.
What was the Q4 2023 GAAP net income per diluted share?
The Q4 2023 GAAP net income per diluted share was $3.57.
What was the return on equity, ex. AOCI, for Q4 2023?
The return on equity, ex. AOCI, for Q4 2023 was 39.9%.
What was the full year 2023 adjusted operating earnings per diluted share?
The full year 2023 adjusted operating earnings per diluted share increased 24% to $30.46.
How much capital did the company return to shareholders in 2023?
The company returned $2.5 billion of capital to shareholders in 2023.
What was the percentage increase in assets under management and administration?
Assets under management and administration reached $1.4 trillion, up 15% from strong client net inflows and market appreciation.
What partnership did Ameriprise Financial, Inc. successfully close in 2023?
Ameriprise Financial, Inc. successfully closed on its partnership with Comerica Bank in November.
What was the effective tax rate for Q4 2023?
The operating effective tax rate was 22.3% in Q4 2023.
