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Ameriprise Financial Reports Second Quarter 2022 Results

Ameriprise Financial, Inc. (NYSE: AMP):

Earnings Per Diluted Share

 

Return on Equity, ex AOCI (1)

 

Q2 2022

 

 

Q2 2022

GAAP

$6.61

 

GAAP

57.0%

Adjusted Operating

$5.81

 

Adjusted Operating

48.8%

  • Second quarter adjusted operating earnings per diluted share was $5.81, up 10 percent from $5.27 in the prior year reflecting strong business performance in a challenging market environment.

 

Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer

 

“Ameriprise delivered a solid quarter in a more challenging operating environment. We’re focused on clients’ comprehensive needs and executing our key priorities.

 

“In Wealth Management, we’re generating good organic growth and results remain strong, with excellent client and advisor engagement around our advice value proposition.

 

“In addition, we had important contributions from our interest rate sensitive businesses, including Ameriprise Bank. These interest rate benefits helped to partially offset equity market-related pressure in Asset Management.

 

“Our capital strength and expense discipline are important differentiators for Ameriprise and help us consistently deliver shareholder value. Our firm generates strong free cash flow across market cycles that we reinvest in the business and return to shareholders at an attractive rate. In fact, we are on track to return approximately 90% of capital to shareholders again this year.

 

“As I look forward, Ameriprise is well positioned to continue to navigate equity market headwinds and benefit from a rising interest rate environment.”

  • Second quarter GAAP net income per diluted share was $6.61, versus $4.88 a year ago, driven by strong business performance and lower market impact on derivatives.

 

  • Adjusted operating net revenue was $3.5 billion, a 3 percent increase, as market depreciation and elevated volatility in the quarter were more than offset by business growth and higher interest earnings.

 

  • Assets under management and administration were $1.2 trillion, as market depreciation more than offset net inflows.

 

  • Long-term investment performance at Columbia Threadneedle Investments remains excellent with 144 funds with 4- and 5-star Morningstar ratings and more than 75 percent of funds above median on an asset-weighted basis over 3-, 5- and 10-year time periods.

 

  • The company returned $600 million of capital to shareholders in the quarter and remains on track to return 90 percent of operating earnings to shareholders during the year.

 

  • The integration of the BMO EMEA acquisition is proceeding as planned and the company completed the rebranding of BMO strategies to Columbia Threadneedle.

 

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

Ameriprise Financial, Inc.

Second Quarter Summary

 

Quarter Ended

June 30,

 

% Over/

(Under)

(in millions, except per share amounts, unaudited)

2022

 

2021

 

GAAP net income

$

756

 

$

591

 

28%

Adjusted operating earnings

(see reconciliation on p. 24)

$

665

 

$

639

 

4%

 

 

 

 

 

 

GAAP net income per diluted share

$

6.61

 

$

4.88

 

35%

Adjusted operating earnings per diluted share

(see reconciliation on p. 24)

$

5.81

 

$

5.27

 

10%

 

 

 

 

 

 

GAAP Return on Equity, ex. AOCI

 

57.0

%

 

19.5

%

 

Adjusted Operating Return on Equity, ex. AOCI

 

48.8

%

 

37.5

%

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

Basic

 

112.3

 

 

118.4

 

 

Diluted

 

114.4

 

 

121.2

 

 

 

 

 

 

 

 

Current quarter GAAP results included $14 million of integration costs from the acquisition of BMO EMEA. GAAP results in the prior year quarter were negatively impacted by market changes that affected the valuation of derivatives.

Ameriprise Financial, Inc.

Advice & Wealth Management Segment Adjusted Operating Results

 

Quarter Ended

June 30,

 

% Over/

(Under)

(in millions, unaudited)

2022

 

2021

 

Net revenues

$

2,056

 

$

1,980

 

4%

Distribution expenses

 

1,185

 

 

1,194

 

1%

G&A / other expense

 

379

 

 

363

 

(4)%

Pretax adjusted operating earnings

$

492

 

$

423

 

16%

 

 

 

 

 

 

Pretax adjusted operating margin

 

23.9

%

 

21.4

%

250 bps

 

 

 

 

 

 

 

 

Quarter Ended

June 30,

 

 

% Over/

(Under)

(in billions, unless otherwise noted)

2022

 

2021

 

 

Total client assets

$

735

 

$

807

(9)%

Total client net flows (1)

$

8.6

 

$

9.5

(10)%

Wrap net flows (1)

$

6.2

 

$

10.0

(39)%

AWM cash balance

$

47.4

 

$

39.2

21%

Average gross yield on cash balances (in bps)

 

130

 

 

63

 

Adjusted operating net revenue per advisor (TTM in thousands)

$

814

 

$

731

11%

 

 

 

 

 

(1) See definition on page 11.

Advice & Wealth Management adjusted operating net revenue grew 4 percent and pretax adjusted operating earnings increased 16 percent as client net inflows and higher interest rates more than offset lower transactional activity and market depreciation. Higher cash balances benefited from the initial lift from rising interest rates, which is expected to build more meaningfully over time. Pretax adjusted operating margin was 23.9 percent, up 250 basis points, reflecting our strategic focus on profitable growth, as well as the initial benefit to revenues from higher interest rates.

Distribution expenses declined 1 percent as market depreciation more than offset organic growth. General and administrative and other expense increased 4 percent, primarily from higher volume-related expense over the past year.

Total client assets declined 9 percent to $735 billion reflecting 15 percent market depreciation, which was partially offset by client inflows. Total client net flows were $8.6 billion in the quarter, a strong result in the face of volatile markets. Organic growth remained solid despite market dislocation and was driven by increased new client acquisition, continued experienced advisor recruiting and deepening relationships from existing clients. Wrap flows declined to $6.2 billion and transactional activity was 10 percent lower as clients remained defensively positioned and held higher cash balances. Cash balances increased 21 percent to $47.4 billion, which represents a significant revenue tailwind as interest rates rise, as well as an opportunity for clients to put cash back to work in the future when volatility subsides.

Adjusted operating net revenue per advisor on a trailing 12-month basis was $814,000, up 11 percent, from enhanced productivity and business growth. Total advisors increased 2 percent to 10,245, reflecting excellent advisor retention, as well as the addition of 99 experienced advisors in the quarter.

Ameriprise Financial, Inc.

Asset Management Segment Adjusted Operating Results

 

Quarter Ended

June 30,

 

% Over/

(Under)

(in millions, unaudited)

2022

 

2021

 

Net revenues

$

881

 

$

879

 

-

Distribution expenses

 

252

 

 

282

 

11%

G&A / other expenses

 

407

 

 

344

 

(18)%

Pretax adjusted operating earnings

$

222

 

$

253

 

(12)%

 

 

 

 

Net pretax adjusted operating margin (1)

 

38.5

%

 

45.4

%

 

 

 

 

 

 

 

 

 

 

Quarter Ended

June 30,

 

% Over/

(Under)

(in billions)

2022

 

2021

 

Total segment AUM

$

598

 

$

593

 

1%

 

 

 

 

Net Flows

 

 

 

Global Retail net flows

$

(5.8

)

$

4.2

 

NM

Global Institutional net flows, ex. legacy insurance partners flows

 

3.9

 

 

3.9

 

4%

Legacy insurance partners flows

 

(1.2

)

 

(1.4

)

10%

Total segment net flows

$

(3.1

)

$

6.7

 

NM

 

 

 

 

Model delivery AUA Flows (2)

$

0.4

 

$

0.9

 

(52)%

 

 

 

 

(1) See reconciliation on page 13.

 

 

 

(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 pretax adjusted operating earnings declined 12 percent to $222 million as a result of the negative impact from equity and bond market depreciation and foreign exchange rates. Adjusted operating revenues were $881 million, unchanged from the prior year, as the addition of the BMO business was offset by the negative impacts associated with market depreciation and net outflows. Net pretax adjusted operating margin was 38.5 percent.

Distribution expenses decreased 11 percent primarily from market depreciation. General and administrative and other expenses grew 18 percent, driven by the addition of the BMO business partially offset by continued expense discipline and foreign exchange. Excluding the BMO business, general and administrative expenses declined 6 percent.

Total assets under management increased 1 percent to $598 billion from the addition of the BMO business offset by market depreciation and foreign exchange translation. Long term investment performance remained strong with more than 75 percent of funds above median on an asset-weighted basis over 3-, 5- and 10-year time periods across equity, fixed income and asset allocation strategies.

In the quarter, net outflows were $3.1 billion and included $1.2 billion of outflows related to legacy insurance partners. Institutional flows remained strong and partially offset elevated retail outflows in the quarter.

  • Retail net outflows were $5.8 billion. In North America, there were outflows in equity and fixed income strategies from market volatility. In EMEA, outflows persisted as investor sentiment remains weak from higher interest rates and geopolitical strain.
  • Global institutional net inflows were $3.9 billion primarily from fixed income and liability-driven investing mandates.

     

Ameriprise Financial, Inc.

Retirement & Protection Solutions Segment Adjusted Operating Results

 

Quarter Ended

June 30,

 

% Over/

(Under)

(in millions, unaudited)

2022

 

2021

 

Net revenues

$

760

 

$

808

(6)%

Expenses

 

581

 

 

626

7%

Pretax adjusted operating earnings

$

179

 

$

182

(2)%

 

 

 

 

 

Retirement & Protection Solutions pretax adjusted operating earnings were $179 million, down 2 percent from last year, primarily from market depreciation. Overall claims remain within expected ranges.

Retirement & Protection Solutions sales decreased 29 percent to $1.2 billion, primarily from volatile markets and management actions to optimize our business mix.

  • Protection sales decreased 23 percent to $65 million related to market volatility. The bulk of sales remain in higher-margin accumulation VUL products.
  • Variable annuity sales decreased 29 percent to $1.1 billion reflecting the industry slowdown due to market dislocation in the quarter, as well as the discontinuation of sales with living benefit riders announced at year-end, which was completed in June. Sales of structured variable annuities increased 3 percent compared to a year ago.

Ameriprise Financial, Inc.

Corporate & Other Segment Adjusted Operating Results

 

Quarter Ended

June 30,

% Over/

(Under)

(in millions, unaudited)

2022

 

2021

Corporate & Other, excluding Closed Blocks

$

(48

)

 

$

(74

)

35%

Closed Blocks (1)

 

(5

)

 

 

(3

)

(67)%

Pretax adjusted operating earnings

$

(53

)

 

$

(77

)

31%

 

 

 

 

 

Long Term Care

$

(1

)

 

$

3

 

NM

Fixed Annuities

 

(4

)

 

 

(6

)

33%

Closed Blocks pretax adjusted operating earnings

$

(5

)

 

$

(3

)

(67)%

 

 

 

 

 

(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 $53 million.

Corporate & Other, excluding Closed Blocks, pretax adjusted operating loss was $48 million, benefiting from lower compensation expense related to Ameriprise share price depreciation. Results in the prior year period included $7 million of affordable housing impairments.

Long Term Care pretax adjusted operating loss was in line with expectations at $1 million.

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

Taxes

The operating effective tax rate increased to 20.8 percent for the second quarter and 19.0 percent on a year-to-date basis. In the second half of the year, the effective tax rate is expected to be in the 20 to 21 percent range with an expected full year operating effective tax rate of approximately 20 percent.

About Ameriprise Financial

At Ameriprise Financial, we have been helping people feel confident about their financial future for more than 125 years. With extensive advisory, 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 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, 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 estimating the expected second half of the year and full year 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, 2021 available at ir.ameriprise.com. Management undertakes no obligation to update publicly or revise any forward-looking statements.

The financial results discussed in this news release represent past performance only, which may not be used to predict or project future results. The financial results and values presented in this news release are based upon asset valuations that represent estimates as of the date of this news release and may be revised in the company’s Form 10-Q for the period ended June 30, 2022.

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

Ameriprise Financial, Inc.

Consolidated GAAP Results

(in millions, except per share amounts, unaudited)

2 Qtr 2022

 

2 Qtr 2021

% Over/

(Under)

1 Qtr 2022

% Over/

(Under)

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

2,277

 

$

2,251

1%

$

2,459

(7)%

Distribution fees

 

458

 

 

452

1%

 

446

3%

Net investment income

 

287

 

 

278

3%

 

261

10%

Premiums, policy and contract charges

 

365

 

 

364

-

 

368

(1)%

Other revenues

 

124

 

 

75

65%

 

123

1%

Total revenues

 

3,511

 

 

3,420

3%

 

3,657

(4)%

Banking and deposit interest expense

 

3

 

 

2

(50)%

 

2

(50)%

Total net revenues

 

3,508

 

 

3,418

3%

 

3,655

(4)%

Expenses

 

 

 

 

 

 

Distribution expenses

 

1,236

 

 

1,233

-

 

1,297

5%

Interest credited to fixed accounts

 

145

 

 

124

(17)%

 

141

(3)%

Benefits, claims, losses and settlement expenses

 

82

 

 

404

80%

 

211

61%

Amortization of deferred acquisition costs

 

152

 

 

63

NM

 

96

(58)%

Interest and debt expense

 

44

 

 

43

(2)%

 

40

(10)%

General and administrative expense

 

894

 

 

830

(8)%

 

947

6%

Total expenses

 

2,553

 

 

2,697

5%

 

2,732

7%

Pretax income

 

955

 

 

721

32%

 

923

3%

Income tax provision

 

199

 

 

130

(53)%

 

162

(23)%

Net income

$

756

 

$

591

28%

$

761

(1)%

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

Basic earnings per share

$

6.73

 

$

4.99

 

$

6.69

 

Earnings per diluted share

$

6.61

 

$

4.88

 

$

6.55

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

Basic

 

112.3

 

 

118.4

 

 

113.7

 

Diluted

 

114.4

 

 

121.2

 

 

116.2

 

 

 

 

 

 

 

 

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 2022

 

2 Qtr 2021

% Over/

(Under)

1 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

Assets Under Management and Administration

 

 

 

 

 

Advice & Wealth Management AUM

$

396,303

 

 

$

426,500

 

(7)%

$

443,521

 

(11)%

Asset Management AUM

 

598,150

 

 

 

593,366

 

1%

 

698,607

 

(14)%

Corporate AUM

 

165

 

 

 

100

 

65%

 

146

 

13%

Eliminations

 

(37,453

)

 

 

(42,025

)

11%

 

(42,032

)

11%

Total Assets Under Management

 

957,165

 

 

 

977,941

 

(2)%

 

1,100,242

 

(13)%

Total Assets Under Administration

 

212,944

 

 

 

233,334

 

(9)%

 

238,879

 

(11)%

Total AUM and AUA

$

1,170,109

 

 

$

1,211,275

 

(3)%

$

1,339,121

 

(13)%

 

 

 

 

 

 

 

S&P 500

 

 

 

 

 

 

Daily average

 

4,110

 

 

 

4,182

 

(2)%

 

4,467

 

(8)%

Period end

 

3,785

 

 

 

4,298

 

(12)%

 

4,530

 

(16)%

 

 

 

 

 

 

 

Weighted Equity Index (WEI) (1)

 

 

 

 

 

 

Daily average

 

2,707

 

 

 

2,858

 

(5)%

 

2,953

 

(8)%

Period end

 

2,491

 

 

 

2,921

 

(15)%

 

2,979

 

(16)%

 

 

 

 

 

 

 

Common shares

 

 

 

 

 

 

Beginning balance

 

110.1

 

 

 

116.0

 

(5)%

 

110.9

 

(1)%

Repurchases

 

(1.8

)

 

 

(1.7

)

(6)%

 

(1.4

)

(29)%

Issuances

 

0.1

 

 

 

0.2

 

(50)%

 

1.2

 

(92)%

Other

 

 

 

 

(0.2

)

NM

 

(0.6

)

NM

Total common shares outstanding

 

108.4

 

 

 

114.3

 

(5)%

 

110.1

 

(2)%

Restricted stock units

 

2.8

 

 

 

3.1

 

(10)%

 

2.9

 

(3)%

Total basic common shares outstanding

 

111.2

 

 

 

117.4

 

(5)%

 

113.0

 

(2)%

Total potentially dilutive shares

 

2.1

 

 

 

2.7

 

(22)%

 

2.3

 

(9)%

Total diluted shares

 

113.3

 

 

 

120.1

 

(6)%

 

115.3

 

(2)%

 

 

 

 

 

 

 

Capital Returned to Shareholders

 

 

 

 

 

 

Dividends paid

$

142

 

 

$

135

 

5%

$

133

 

7%

Common stock share repurchases

 

458

 

 

 

450

 

2%

 

429

 

7%

Total Capital Returned to Shareholders

$

600

 

 

$

585

 

3%

$

562

 

7%

 

 

 

 

 

 

 

(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 2022

2 Qtr 2021

% Over/

(Under)

1 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

 

 

Revenues

 

 

��

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

 

 

 

Advisory fees

$

1,144

 

$

1,113

 

3%

$

1,191

 

(4)%

Financial planning fees

 

99

 

 

93

 

6%

 

97

 

2%

Transaction and other fees

 

97

 

 

93

 

4%

 

92

 

5%

Total management and financial advice fees

 

1,340

 

 

1,299

 

3%

 

1,380

 

(3)%

Distribution fees:

 

 

 

 

 

 

 

 

Mutual funds

 

186

 

 

212

 

(12)%

 

204

 

(9)%

Insurance and annuity

 

216

 

 

252

 

(14)%

 

221

 

(2)%

Off-Balance sheet brokerage cash (1)

 

54

 

 

15

 

NM

 

16

 

NM

Other products

 

86

 

 

83

 

4%

 

88

 

(2)%

Total distribution fees

 

542

 

 

562

 

(4)%

 

529

 

2%

Net investment income

 

120

 

 

63

 

90%

 

78

 

54%

Other revenues

 

57

 

 

58

 

(2)%

 

57

 

-

Total revenues

 

2,059

 

 

1,982

 

4%

 

2,044

 

1%

Banking and deposit interest expense

 

3

 

 

2

 

(50)%

 

2

 

(50)%

Adjusted operating total net revenues

 

2,056

 

 

1,980

 

4%

 

2,042

 

1%

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

Distribution expenses

 

1,185

 

 

1,194

 

1%

 

1,232

 

4%

Interest and debt expense

 

3

 

 

2

 

(50)%

 

2

 

(50)%

General and administrative expense

 

376

 

 

361

 

(4)%

 

368

 

(2)%

Adjusted operating expenses

 

1,564

 

 

1,557

 

-

 

1,602

 

2%

Pretax adjusted operating earnings

$

492

 

$

423

 

16%

$

440

 

12%

 

 

 

 

 

 

 

 

 

Pretax adjusted operating margin

 

23.9

%

 

21.4

%

 

 

21.5

%

 

 

 

 

 

 

 

 

 

 

(1) Prior to Q1 2022, Off-Balance sheet brokerage cash was included in Other products. Prior periods have been restated.

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

Ameriprise Financial, Inc.

Advice & Wealth Management Segment Operating Metrics

(in millions unless otherwise noted, unaudited)

2 Qtr 2022

2 Qtr 2021

% Over/

(Under)

1 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

 

 

AWM Total Client Assets

$

735,462

 

 

$

807,335

 

(9)%

$

823,367

 

 

(11)%

 

 

 

 

 

 

 

 

 

Total Client Flows (1)

$

8,572

 

 

$

9,530

 

(10)%

$

10,405

 

 

(18)%

 

 

 

 

 

 

 

 

 

Total Wrap Accounts

 

 

 

 

 

 

 

 

Beginning assets

$

447,046

 

 

$

399,817

 

12%

$

464,688

 

 

(4)%

Net flows

 

6,159

 

 

 

10,024

 

(39)%

 

8,677

 

 

(29)%

Market appreciation (depreciation) and other

 

(53,918

)

 

 

20,162

 

NM

 

(26,319

)

 

NM

Total wrap ending assets

$

399,287

 

 

$

430,003

 

(7)%

$

447,046

 

 

(11)%

 

 

 

 

 

 

 

 

 

Advisory wrap account assets ending balance (2)

$

395,054

 

 

$

425,200

 

(7)%

$

442,145

 

 

(11)%

 

 

 

 

 

 

 

 

 

Brokerage Cash & Certificates Balances

 

 

 

 

 

 

 

 

On-balance sheet (Net Investment Income)

 

 

 

 

 

 

 

 

On-balance sheet - broker dealer

$

3,542

 

 

$

3,383

 

5%

$

3,633

 

 

(3)%

On-balance sheet - bank

 

15,520

 

 

 

8,671

 

79%

 

13,220

 

 

17%

On-balance sheet - certificate

 

5,284

 

 

 

5,749

 

(8)%

 

5,197

 

 

2%

Total on-balance sheet

$

24,346

 

 

$

17,803

 

37%

$

22,050

 

 

10%

Off-balance sheet (Distribution Fees)

 

 

 

 

 

 

 

 

Off-balance sheet - broker dealer

$

23,102

 

 

$

21,391

 

8%

$

23,625

 

 

(2)%

Total brokerage cash & certificates balances

$

47,448

 

 

$

39,194

 

21%

$

45,675

 

 

4%

 

 

 

 

 

 

 

 

 

Gross Fee Yield

 

 

 

 

 

 

 

 

On-balance sheet - broker dealer

 

0.49

 

%

 

0.05

%

 

 

0.06

 

%

 

On-balance sheet - bank (3)

 

2.00

 

%

 

1.28

%

 

 

1.40

 

%

 

On-balance sheet - certificates

 

1.53

 

%

 

1.13

%

 

 

1.05

 

%

 

Off-balance sheet - broker dealer

 

0.90

 

%

 

0.27

%

 

 

0.28

 

%

 

 

 

 

 

 

 

 

 

 

Weighted Average Gross Fee Yield (3)

 

1.30

 

%

 

0.63

%

 

 

0.69

 

%

 

 

 

 

 

 

 

 

 

 

Financial Advisors

 

 

 

 

 

 

 

 

Employee advisors

 

2,096

 

 

 

2,104

 

-

 

2,088

 

 

-

Franchisee advisors

 

8,149

 

 

 

7,943

 

3%

 

8,061

 

 

1%

Total financial advisors

 

10,245

 

 

 

10,047

 

2%

 

10,149

 

 

1%

 

 

 

 

 

 

 

 

 

Advisor Retention

 

 

 

 

 

 

 

 

Employee

 

92.3

 

%

 

91.4

%

 

 

92.0

 

%

 

Franchisee

 

94.4

 

%

 

94.1

%

 

 

94.1

 

%

 

 

 

 

 

 

 

 

 

 

(1) Total client flows represent inflows of client cash and securities less client outflows. Inflows include dividends and interest; outflows include fees. Excludes short-term and long-term capital gain distributions.

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

(3) As of Q4 2021, the Gross Fee Yield for prior periods have been restated.

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

Ameriprise Financial, Inc.

Asset Management Segment Adjusted Operating Results

(in millions, unaudited)

2 Qtr 2022

2 Qtr 2021

% Over/

(Under)

1 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

 

 

 

Asset management fees:

 

 

 

 

 

 

 

 

Retail

$

543

 

 

$

567

 

 

(4)%

$

644

 

 

(16)%

Institutional

 

173

 

 

 

131

 

 

32%

 

195

 

 

(11)%

Transaction and other fees

 

54

 

 

 

56

 

 

(4)%

 

55

 

 

(2)%

Revenue from other sources (1)

 

7

 

 

 

4

 

 

75%

 

4

 

 

75%

Total management and financial advice fees

 

777

 

 

 

758

 

 

3%

 

898

 

 

(13)%

Distribution fees:

 

 

 

 

 

 

 

 

Mutual funds

 

58

 

 

 

69

 

 

(16)%

 

65

 

 

(11)%

Insurance and annuity

 

42

 

 

 

49

 

 

(14)%

 

46

 

 

(9)%

Total distribution fees

 

100

 

 

 

118

 

 

(15)%

 

111

 

 

(10)%

Net investment income

 

 

 

 

2

 

 

NM

 

4

 

 

NM

Other revenues

 

4

 

 

 

1

 

 

NM

 

4

 

 

-

Total revenues

 

881

 

 

 

879

 

 

-

 

1,017

 

 

(13)%

Banking and deposit interest expense

 

 

 

 

 

 

-

 

 

 

-

Adjusted operating total net revenues

 

881

 

 

 

879

 

 

-

 

1,017

 

 

(13)%

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

Distribution expenses

 

252

 

 

 

282

 

 

11%

 

277

 

 

9%

Amortization of deferred acquisition costs

 

3

 

 

 

3

 

 

-

 

3

 

 

-

Interest and debt expense

 

1

 

 

 

1

 

 

-

 

1

 

 

-

General and administrative expense

 

403

 

 

 

340

 

 

(19)%

 

451

 

 

11%

Adjusted operating expenses

 

659

 

 

 

626

 

 

(5)%

 

732

 

 

10%

Pretax adjusted operating earnings

$

222

 

 

$

253

 

 

(12)%

$

285

 

 

(22)%

 

 

 

 

 

 

 

 

 

Net Pretax Adjusted Operating Margin Reconciliation

 

 

 

 

 

 

 

Adjusted operating total net revenues

$

881

 

 

$

879

 

 

-

$

1,017

 

 

(13)%

Distribution pass thru revenues

 

(200

)

 

 

(225

)

 

11%

 

(221

)

 

10%

Subadvisory and other pass thru revenues

 

(91

)

 

 

(94

)

 

3%

 

(104

)

 

13%

Net adjusted operating revenues

$

590

 

 

$

560

 

 

5%

$

692

 

 

(15)%

 

 

 

 

 

 

 

 

 

Pretax adjusted operating earnings

$

222

 

 

$

253

 

 

(12)%

$

285

 

 

(22)%

Adjusted operating net investment income

 

 

 

 

(2

)

 

NM

 

(4

)

 

NM

Amortization of intangibles

 

5

 

 

 

3

 

 

67%

 

6

 

 

(17)%

Net adjusted operating earnings

$

227

 

 

$

254

 

 

(11)%

$

287

 

 

(21)%

 

 

 

 

 

 

 

 

 

Pretax adjusted operating margin

 

25.2

 

%

 

28.8

 

%

 

 

28.0

 

%

 

Net pretax adjusted operating margin (2)

 

38.5

 

%

 

45.4

 

%

 

 

41.5

 

%

 

 

 

 

 

 

 

 

 

 

Performance fees (3)

 

 

 

 

 

 

 

 

Performance fees

$

5

 

 

$

3

 

 

67%

$

54

 

 

(91)%

General and administrative expense related to performance fees

 

2

 

 

 

 

 

-

 

33

 

 

94%

Net performance fees

$

3

 

 

$

3

 

 

-

$

21

 

 

(86)%

 

 

 

 

 

 

 

 

 

(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 2022

2 Qtr 2021

% Over/

(Under)

1 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

 

 

Managed Assets Rollforward

 

 

 

 

 

 

 

 

Global Retail Funds

 

 

 

 

 

 

 

 

Beginning assets

$

379,985

 

 

$

340,270

 

 

12%

$

409,369

 

 

(7)%

Inflows

 

15,572

 

 

 

19,371

 

 

(20)%

 

21,788

 

 

(29)%

Outflows

 

(23,725

)

 

 

(17,075

)

 

(39)%

 

(23,237

)

 

(2)%

Net VP/VIT fund flows

 

(1,043

)

 

 

(967

)

 

(8)%

 

(1,079

)

 

3%

Net new flows (1)

 

(9,196

)

 

 

1,329

 

 

NM

 

(2,528

)

 

NM

Reinvested dividends

 

3,403

 

 

 

2,874

 

 

18%

 

663

 

 

NM

Net flows

 

(5,793

)

 

 

4,203

 

 

NM

 

(1,865

)

 

NM

Distributions

 

(3,812

)

 

 

(3,375

)

 

(13)%

 

(839

)

 

NM

Market appreciation (depreciation) and other

 

(43,104

)

 

 

18,113

 

 

NM

 

(25,818

)

 

(67)%

Foreign currency translation (2)

 

(4,338

)

 

 

265

 

 

NM

 

(862

)

 

NM

Total ending assets

 

322,938

 

 

 

359,476

 

 

(10)%

 

379,985

 

 

(15)%

% of total retail assets sub-advised

 

14.9

 

%

 

15.9

 

%

 

 

14.6

 

%

 

 

 

 

 

 

 

 

 

 

Global Institutional

 

 

 

 

 

 

 

 

Beginning assets

 

318,622

 

 

 

223,861

 

 

42%

 

344,687

 

 

(8)%

Inflows (3)

 

16,108

 

 

 

9,320

 

 

73%

 

12,739

 

 

26%

Outflows (3)

 

(13,365

)

 

 

(6,853

)

 

(95)%

 

(11,560

)

 

(16)%

Net flows (1)

 

2,743

 

 

 

2,467

 

 

11%

 

1,179

 

 

NM

Market appreciation (depreciation) and other (4)

 

(36,473

)

 

 

7,125

 

 

NM

 

(21,642

)

 

(69)%

Foreign currency translation (2)

 

(9,680

)

 

 

437

 

 

NM

 

(5,602

)

 

(73)%

Total ending assets

 

275,212

 

 

 

233,890

 

 

18%

 

318,622

 

 

(14)%

 

 

 

 

 

 

 

 

 

Total managed assets

$

598,150

 

 

$

593,366

 

 

1%

$

698,607

 

 

(14)%

 

 

 

 

 

 

 

 

 

Total net flows

$

(3,050

)

 

$

6,670

 

 

NM

$

(686

)

 

NM

 

 

 

 

 

 

 

 

 

Legacy insurance partners flows

$

(1,212

)

 

$

(1,353

)

 

10%

$

(672

)

 

(80)%

 

 

 

 

 

 

 

 

 

Total Assets Under Advisement (5)

$

26,481

 

 

$

18,036

 

 

47%

$

27,367

 

 

(3)%

Model delivery AUA flows (6) (7)

$

441

 

 

$

912

 

 

(52)%

$

4,816

 

 

(91)%

 

 

 

 

 

 

 

 

 

(1) Q1 2022 net flows included $2,649 ($2,550 retail and $99 institutional) from the US asset transfer from the BMO acquisition.

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

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

(4) 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.

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

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

(7) Q1 2022 model delivery AUA flows included $4,447 from the BMO US asset transfer.

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

Ameriprise Financial, Inc.

Asset Management Segment Operating Metrics

(in millions, unaudited)

2 Qtr 2022

2 Qtr 2021

% Over/

(Under)

1 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

 

 

Total Managed Assets by Type (1)

 

 

 

 

 

 

 

 

Equity

$

306,044

 

$

339,032

 

(10)%

$

367,083

 

(17)%

Fixed income

 

216,445

 

 

202,457

 

7%

 

256,513

 

(16)%

Money market

 

19,334

 

 

5,484

 

NM

 

12,902

 

50%

Alternative

 

38,370

 

 

23,289

 

65%

 

40,221

 

(5)%

Hybrid and other

 

17,957

 

 

23,104

 

(22)%

 

21,888

 

(18)%

Total managed assets by type

$

598,150

 

$

593,366

 

1%

$

698,607

 

(14)%

 

 

 

 

 

 

 

 

 

Average Managed Assets by Type (1) (2)

 

 

 

 

 

 

 

 

Equity

$

336,754

 

$

330,801

 

2%

$

379,614

 

(11)%

Fixed income

 

235,580

 

 

199,545

 

18%

 

267,154

 

(12)%

Money market

 

16,489

 

 

5,823

 

NM

 

11,818

 

40%

Alternative

 

39,395

 

 

23,091

 

71%

 

40,079

 

(2)%

Hybrid and other

 

19,476

 

 

22,570

 

(14)%

 

22,528

 

(14)%

Total average managed assets by type

$

647,694

 

$

581,830

 

11%

$

721,193

 

(10)%

 

 

 

 

 

 

 

 

 

(1) In Q4 2021, the definition of Alternative AUM was changed to now include real estate, CLOs, private equity, hedge funds (direct and funds of funds), infrastructure and commodities. Prior periods have been restated to reflect this change.

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

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

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

Asset Management Segment Performance Metrics

 

2 Qtr 2022

 

 

 

 

 

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

1 year

3 year

5 year

10 year

Equity

50%

76%

76%

89%

Fixed Income

35%

82%

73%

91%

Asset Allocation

53%

60%

72%

90%

 

 

 

 

 

4- or 5-star Morningstar rated funds

Overall

3 year

5 year

10 year

Number of Rated Funds

144

107

93

106

Percent of Rated Assets

66%

56%

52%

63%

 

 

 

 

 

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 and legacy BMO funds are defined by either IA or Morningstar index, and are based on the highest-rated 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 06/30/22. Columbia funds are available for purchase by U.S. customers. Out of 104 Columbia funds rated (based on primary share class), 18 received a 5-star Overall Rating and 41 received a 4-star Overall Rating. Out of 92 Threadneedle funds rated (based on highest-rated chare class), 13 received a 5-star Overall Rating and 39 received a 4-star Overall Rating. Out of 63 BMO funds rated (based on highest-rated share class), 6 received a 5-star Overall Rating and 27 received a 4-star Overall Rating. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics. Not all funds are available in all jurisdictions, to all investors or through all firms.

 

© 2022 Morningstar. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

 

 

 

 

 

Ameriprise Financial, Inc.

Retirement & Protection Solutions Segment Adjusted Operating Results

(in millions, unaudited)

2 Qtr 2022

 

2 Qtr 2021

% Over/

(Under)

1 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

197

 

$

234

(16)%

$

218

(10)%

Distribution fees

 

106

 

 

122

(13)%

 

112

(5)%

Net investment income

 

124

 

 

127

(2)%

 

114

9%

Premiums, policy and contract charges

 

329

 

 

325

1%

 

325

1%

Other revenues

 

4

 

 

-

 

3

33%

Total revenues

 

760

 

 

808

(6)%

 

772

(2)%

Banking and deposit interest expense

 

 

 

-

 

-

Adjusted operating total net revenues

 

760

 

 

808

(6)%

 

772

(2)%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

115

 

 

134

14%

 

119

3%

Interest credited to fixed accounts

 

96

 

 

98

2%

 

96

-

Benefits, claims, losses and settlement expenses

 

233

 

 

241

3%

 

230

(1)%

Amortization of deferred acquisition costs

 

54

 

 

70

23%

 

53

(2)%

Interest and debt expense

 

9

 

 

9

-

 

9

-

General and administrative expense

 

74

 

 

74

-

 

74

-

Adjusted operating expenses

 

581

 

 

626

7%

 

581

-

Pretax adjusted operating earnings

$

179

 

$

182

(2)%

$

191

(6)%

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

Retirement & Protection Solutions Segment Operating Metrics

(in millions, unaudited)

2 Qtr 2022

 

2 Qtr 2021

% Over/

(Under)

1 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

Variable Annuities Rollforwards

 

 

 

 

 

 

Beginning balance

$

85,759

 

 

$

86,964

 

(1)%

$

92,292

 

(7)%

Deposit

 

1,126

 

 

 

1,597

 

(29)%

 

1,046

 

8%

Withdrawals and terminations

 

(1,514

)

 

 

(1,946

)

22%

 

(1,678

)

10%

Net flows

 

(388

)

 

 

(349

)

(11)%

 

(632

)

39%

Investment performance and interest credited

 

(9,684

)

 

 

3,879

 

NM

 

(5,901

)

(64)%

Total ending balance - contract accumulation values

$

75,687

 

 

$

90,494

 

(16)%

$

85,759

 

(12)%

 

 

 

 

 

 

 

Variable annuities fixed sub-accounts

$

4,931

 

 

$

5,052

 

(2)%

$

4,951

 

-

 

 

 

 

 

 

 

Life Insurance In Force

$

198,546

 

 

$

196,794

 

1%

$

198,674

 

-

 

 

 

 

 

 

 

Net Amount at Risk (Life)

$

39,017

 

 

$

37,465

 

4%

$

38,290

 

2%

 

 

 

 

 

 

 

Net Policyholder Reserves

 

 

 

 

 

 

VUL/UL

$

13,140

 

 

$

14,593

 

(10)%

$

14,419

 

(9)%

Term and whole life

 

162

 

 

 

171

 

(5)%

 

163

 

(1)%

Disability insurance

 

476

 

 

 

494

 

(4)%

 

478

 

-

Other insurance

 

584

 

 

 

629

 

(7)%

 

596

 

(2)%

Total net policyholder reserves

$

14,362

 

 

$

15,887

 

(10)%

$

15,656

 

(8)%

 

 

 

 

 

 

 

DAC Ending Balances

 

 

 

 

 

 

Variable Annuities DAC

$

1,864

 

 

$

1,799

 

4%

$

1,914

 

(3)%

Life and Health DAC

$

1,055

 

 

$

799

 

32%

$

955

 

10%

 

 

 

 

 

 

 

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 2022

 

2 Qtr 2021

% Over/

(Under)

1 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

 

 

$

 

-

$

 

-

Distribution fees

 

 

 

 

 

-

 

 

-

Net investment income

 

(6

)

 

 

(20

)

70%

 

(11

)

45%

Premiums, policy and contract charges

 

 

 

 

1

 

NM

 

 

-

Other revenues

 

(1

)

 

 

3

 

NM

 

2

 

NM

Total revenues

 

(7

)

 

 

(16

)

56%

 

(9

)

22%

Banking and deposit interest expense

 

 

 

 

1

 

NM

 

 

-

Adjusted operating total net revenues

 

(7

)

 

 

(17

)

59%

 

(9

)

22%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

-

 

 

-

Interest credited to fixed accounts

 

 

 

 

 

-

 

 

-

Benefits, claims, losses and settlement expenses

 

 

 

 

 

-

 

 

-

Amortization of deferred acquisition costs

 

 

 

 

 

-

 

 

-

Interest and debt expense

 

13

 

 

 

9

 

(44)%

 

13

 

-

General and administrative expense

 

28

 

 

 

48

 

42%

 

50

 

44%

Adjusted operating expenses

 

41

 

 

 

57

 

28%

 

63

 

35%

Pretax adjusted operating earnings (loss)

$

(48

)

 

$

(74

)

35%

$

(72

)

33%

 

 

 

 

 

 

 

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 2022

 

2 Qtr 2021

% Over/

(Under)

1 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

Long Term Care Adjusted Operating Income Statements

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

 

 

$

 

-

$

 

-

Distribution fees

 

 

 

 

 

-

 

 

-

Net investment income

 

37

 

 

 

38

 

(3)%

 

36

 

3%

Premiums, policy and contract charges

 

24

 

 

 

24

 

-

 

23

 

4%

Other revenues

 

 

 

 

 

-

 

 

-

Total revenues

 

61

 

 

 

62

 

(2)%

 

59

 

3%

Banking and deposit interest expense

 

 

 

 

 

-

 

 

-

Adjusted operating total net revenues

 

61

 

 

 

62

 

(2)%

 

59

 

3%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

(4

)

 

 

(3

)

33%

 

(2

)

NM

Interest credited to fixed accounts

 

 

 

 

 

-

 

 

-

Benefits, claims, losses and settlement expenses

 

57

 

 

 

52

 

(10)%

 

52

 

(10)%

Amortization of deferred acquisition costs

 

 

 

 

 

-

 

 

-

Interest and debt expense

 

2

 

 

 

2

 

-

 

3

 

33%

General and administrative expense

 

7

 

 

 

8

 

13%

 

5

 

(40)%

Adjusted operating expenses

 

62

 

 

 

59

 

(5)%

 

58

 

(7)%

Pretax adjusted operating earnings (loss)

$

(1

)

 

$

3

 

NM

$

1

 

NM

 

 

 

 

 

 

 

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

 

 

 

 

 

 

Active Life Reserves

$

2,122

 

 

$

2,514

 

(16)%

$

2,291

 

(7)%

Disabled Life Reserves

 

593

 

 

 

548

 

8%

 

578

 

3%

Total long term care policyholder reserves, net of reinsurance

$

2,715

 

 

$

3,062

 

(11)%

$

2,869

 

(5)%

 

 

 

 

 

 

 

(1) SFAS 115 requires GAAP reserves to include all unrealized gains on available for sale securities in the portfolio to be reported as if they were realized on the last day of the accounting period with all financial impacts flowing through other comprehensive income.

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

Ameriprise Financial, Inc.

Corporate Segment Adjusted Operating Results and Metrics

(in millions, unaudited)

2 Qtr 2022

2 Qtr 2021

% Over/

(Under)

1 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

 

 

Fixed Annuities Adjusted Operating Income Statements

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

Management and financial advice fees

$

 

 

$

 

 

-

$

 

 

-

Distribution fees

 

 

 

 

 

 

-

 

 

 

-

Net investment income

 

8

 

 

 

61

 

 

(87)%

 

8

 

 

-

Premiums, policy and contract charges

 

 

 

 

 

 

-

 

1

 

 

NM

Other revenues

 

57

 

 

 

13

 

 

NM

 

57

 

 

-

Total revenues

 

65

 

 

 

74

 

 

(12)%

 

66

 

 

(2)%

Banking and deposit interest expense

 

 

 

 

 

 

-

 

 

 

-

Adjusted operating total net revenues

 

65

 

 

 

74

 

 

(12)%

 

66

 

 

(2)%

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

Distribution expenses

 

1

 

 

 

1

 

 

-

 

1

 

 

-

Interest credited to fixed accounts

 

60

 

 

 

62

 

 

3%

 

61

 

 

2%

Benefits, claims, losses and settlement expenses

 

2

 

 

 

2

 

 

-

 

2

 

 

-

Amortization of deferred acquisition costs

 

 

 

 

2

 

 

NM

 

3

 

 

NM

Interest and debt expense

 

 

 

 

6

 

 

NM

 

 

 

-

General and administrative expense

 

6

 

 

 

7

 

 

14%

 

4

 

 

(50)%

Adjusted operating expenses

 

69

 

 

 

80

 

 

14%

 

71

 

 

3%

Pretax adjusted operating earnings (loss)

$

(4

)

 

$

(6

)

 

33%

$

(5

)

 

20%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Ameriprise Financial, Inc.

Eliminations (1) Adjusted Operating Results

(in millions, unaudited)

2 Qtr 2022

 

2 Qtr 2021

% Over/

(Under)

1 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

(36

)

 

$

(38

)

5%

$

(35

)

(3)%

Distribution fees

 

(290

)

 

 

(350

)

17%

 

(306

)

5%

Net investment income

 

(3

)

 

 

(5

)

40%

 

(3

)

-

Premiums, policy and contract charges

 

(8

)

 

 

(7

)

(14)%

 

(8

)

-

Other revenues

 

 

 

 

 

-

 

 

-

Total revenues

 

(337

)

 

 

(400

)

16%

 

(352

)

4%

Banking and deposit interest expense

 

 

 

 

(1

)

NM

 

 

-

Adjusted operating total net revenues

 

(337

)

 

 

(399

)

16%

 

(352

)

4%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

(313

)

 

 

(375

)

(17)%

 

(330

)

(5)%

Interest credited to fixed accounts

 

 

 

 

 

-

 

 

-

Benefits, claims, losses and settlement expenses

 

(5

)

 

 

(5

)

-

 

(4

)

25%

Amortization of deferred acquisition costs

 

 

 

 

 

-

 

 

-

Interest and debt expense

 

(3

)

 

 

(3

)

-

 

(2

)

50%

General and administrative expense

 

(16

)

 

 

(16

)

-

 

(16

)

-

Adjusted operating expenses

 

(337

)

 

 

(399

)

(16)%

 

(352

)

(4)%

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,

2022

June 30,

2021

March 31,

2022

 

 

 

 

 

 

 

Long-term Debt Summary

 

 

 

 

 

 

Senior notes

$

2,800

 

 

$

2,800

 

 

$

2,300

 

 

Finance lease liabilities

 

35

 

 

 

44

 

 

 

37

 

 

Other (1)

 

(11

)

 

 

(11

)

 

 

(7

)

 

Total Ameriprise Financial long-term debt

 

2,824

 

 

 

2,833

 

 

 

2,330

 

 

Non-recourse debt of consolidated investment entities

 

2,078

 

 

 

2,558

 

 

 

2,157

 

 

Total long-term debt

$

4,902

 

 

$

5,391

 

 

$

4,487

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt

$

2,824

 

 

$

2,833

 

 

$

2,330

 

 

Finance lease liabilities

 

(35

)

 

 

(44

)

 

 

(37

)

 

Other (1)

 

11

 

 

 

11

 

 

 

7

 

 

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

$

2,800

 

 

$

2,800

 

 

$

2,300

 

 

 

 

 

 

 

 

 

Total equity (2)

$

4,304

 

 

$

5,686

 

 

$

5,010

 

 

Equity of consolidated investment entities

 

(6

)

 

 

(6

)

 

 

1

 

 

Total equity excluding CIEs

$

4,298

 

 

$

5,680

 

 

$

5,011

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial capital

$

7,128

 

 

$

8,519

 

 

$

7,340

 

 

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

$

7,098

 

 

$

8,480

 

 

$

7,311

 

 

 

 

 

 

 

 

 

Debt to capital

 

 

 

 

 

 

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

 

39.6

 

%

 

33.3

 

%

 

31.7

 

%

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

 

39.4

 

%

 

33.0

 

%

 

31.5

 

%

 

 

 

 

 

 

 

(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,

2022

 

December 31,

2021

 

 

 

 

 

 

Assets

 

 

 

 

Cash and cash equivalents

$

7,489

 

 

$

7,127

 

 

Cash of consolidated investment entities

 

72

 

 

 

121

 

 

Investments

 

38,017

 

 

 

35,810

 

 

Investments of consolidated investment entities

 

2,073

 

 

 

2,184

 

 

Separate account assets

 

77,758

 

 

 

97,491

 

 

Receivables

 

16,366

 

 

 

16,205

 

 

Receivables of consolidated investment entities

 

19

 

 

 

17

 

 

Deferred acquisition costs

 

2,969

 

 

 

2,782

 

 

Restricted and segregated cash and investments

 

2,494

 

 

 

2,795

 

 

Other assets

 

11,238

 

 

 

11,444

 

 

Other assets of consolidated investment entities

 

2

 

 

 

3

 

 

Total Assets

$

158,497

 

 

$

175,979

 

 

 

 

 

 

 

Liabilities

 

 

 

 

Policyholder account balances, future policy benefits and claims

$

35,176

 

 

$

35,750

 

 

Separate account liabilities

 

77,758

 

 

 

97,491

 

 

Customer deposits

 

24,344

 

 

 

20,227

 

 

Short-term borrowings

 

200

 

 

 

200

 

 

Long-term debt

 

2,824

 

 

 

2,832

 

 

Debt of consolidated investment entities

 

2,078

 

 

 

2,164

 

 

Accounts payable and accrued expenses

 

2,206

 

 

 

2,527

 

 

Other liabilities

 

9,545

 

 

 

8,966

 

 

Other liabilities of consolidated investment entities

 

62

 

 

 

137

 

 

Total Liabilities

 

154,193

 

 

 

170,294

 

 

 

 

 

 

 

Equity

 

 

 

 

Ameriprise Financial

 

 

 

 

Common shares ($.01 par)

 

3

 

 

 

3

 

 

Additional paid-in capital

 

9,380

 

 

 

9,220

 

 

Retained earnings

 

18,767

 

 

 

17,525

 

 

Treasury stock

 

(22,051

)

 

 

(21,066

)

 

Accumulated other comprehensive income, net of tax

 

(1,795

)

 

 

3

 

 

Total Equity

 

4,304

 

 

 

5,685

 

 

Total Liabilities and Equity

$

158,497

 

 

$

175,979

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

Reconciliation Table: Earnings

 

Quarter Ended

June 30,

 

% Over/

(Under)

 

Per Diluted Share

Quarter Ended

June 30,

 

% Over/

(Under)

(in millions, except per share amounts, unaudited)

2022

 

2021

 

 

2022

 

2021

 

Net income

$

756

 

 

$

591

 

 

28%

 

$

6.61

 

 

$

4.88

 

 

35%

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

 

(14

)

 

 

11

 

 

 

 

 

(0.12

)

 

 

0.09

 

 

 

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

 

(305

)

 

 

87

 

 

 

 

 

(2.67

)

 

 

0.71

 

 

 

Add: Mean reversion-related impacts (1)

 

161

 

 

 

(42

)

 

 

 

 

1.41

 

 

 

(0.35

)

 

 

Add: Market impact of hedges on investments (1)

 

 

 

 

17

 

 

 

 

 

 

 

 

0.14

 

 

 

Add: Integration/restructuring charges (1)

 

14

 

 

 

7

 

 

 

 

 

0.12

 

 

 

0.06

 

 

 

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

 

(1

)

 

 

(2

)

 

 

 

 

(0.01

)

 

 

(0.02

)

 

 

Add: Tax effect of adjustments (2)

 

24

 

 

 

(12

)

 

 

 

 

0.21

 

 

 

(0.10

)

 

 

Adjusted operating earnings

$

665

 

 

$

639

 

 

4%

 

$

5.81

 

 

$

5.27

 

 

10%

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

112.3

 

 

 

118.4

 

 

 

 

 

 

 

 

 

Diluted

 

114.4

 

 

 

121.2

 

 

 

 

 

 

 

 

 

 

(1) Pretax adjusted operating adjustment.

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

Ameriprise Financial, Inc.

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

 

Quarter Ended

June 30,

 

(in millions, unaudited)

2022

 

2021

 

Total net revenues

$

3,508

 

 

$

3,418

 

 

Less: Net realized investment gains (losses)

 

(15

)

 

 

10

 

 

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

 

25

 

 

 

21

 

 

Less: Mean Reversion related impacts

 

(1

)

 

 

1

 

 

Less: Market impact of hedges on investments

 

 

 

 

(17

)

 

Less: Integration/restructuring charges

 

 

 

 

 

 

Less: CIEs revenue

 

20

 

 

 

16

 

 

Adjusted operating total net revenues

$

3,479

 

 

$

3,387

 

 

 

 

 

 

 

Total expenses

$

2,553

 

 

$

2,697

 

 

Less: CIEs expenses

 

21

 

 

 

18

 

 

Less: Integration/restructuring charges

 

14

 

 

 

7

 

 

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

 

(280

)

 

 

108

 

 

Less: Mean reversion-related impacts

 

160

 

 

 

(41

)

 

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

 

(1

)

 

 

(1

)

 

Adjusted operating expenses

$

2,639

 

 

$

2,606

 

 

 

 

 

 

 

Pretax income

$

955

 

 

$

721

 

 

Pretax adjusted operating earnings

$

840

 

 

$

781

 

 

 

 

 

 

 

Pretax income margin

 

27.2

 

%

 

21.1

 

%

Pretax adjusted operating margin

 

24.1

 

%

 

23.1

 

%

 

 

 

 

 

Ameriprise Financial, Inc.

Reconciliation Table: Effective Tax Rate

 

Quarter Ended

June 30, 2021

 

(in millions, unaudited)

GAAP

 

Adjusted Operating

Pretax income

$

721

 

$

781

 

Income tax provision

$

130

 

$

142

 

 

 

 

 

 

Effective tax rate

 

18.1

%

 

18.2

%

 

 

 

 

 

Ameriprise Financial, Inc.

Reconciliation Table: Effective Tax Rate

 

Quarter Ended

June 30, 2022

 

(in millions, unaudited)

GAAP

 

Adjusted Operating

Pretax income

$

955

 

$

840

 

Income tax provision

$

199

 

$

175

 

 

 

 

 

 

Effective tax rate

 

20.8

%

 

20.8

%

 

 

 

 

 

Ameriprise Financial, Inc.

Reconciliation Table: Asset Management G&A Expenses

 

Quarter Ended

June 30,

 

% Over/

(under)

(in millions, unaudited)

2022

 

2021

 

 

 

 

 

 

 

Total G&A expenses

$

403

 

$

340

 

19%

BMO G&A expenses

 

85

 

 

 

 

Total G&A expenses excluding BMO

$

318

 

$

340

 

(6)%

 

 

 

 

 

 

Ameriprise Financial, Inc.

Reconciliation Table: Return on Equity (ROE) Excluding Accumulated

Other Comprehensive Income “AOCI”

 

Twelve Months Ended

June 30,

 

 

(in millions, unaudited)

2022

 

 

2021

 

 

Net income

$

3,249

 

 

$

1,065

 

 

 

Less: Adjustments (1)

 

467

 

 

 

(980

)

 

 

Adjusted operating earnings

$

2,782

 

 

$

2,045

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial, Inc. shareholders’ equity

$

5,278

 

 

$

5,924

 

 

 

Less: Accumulated other comprehensive income, net of tax

 

(426

)

 

 

463

 

 

 

Total Ameriprise Financial, Inc. shareholders’ equity excluding AOCI

 

5,704

 

 

 

5,461

 

 

 

Less: Equity impacts attributable to the consolidated investment entities

 

2

 

 

 

1

 

 

 

Adjusted operating equity

$

5,702

 

 

$

5,460

 

 

 

 

 

 

 

 

 

Return on equity excluding AOCI

 

57.0

 

%

 

19.5

 

%

 

Adjusted operating return on equity excluding AOCI (2)

 

48.8

 

%

 

37.5

 

%

 

 

 

 

 

 

 

(1) Adjustments reflect the trailing twelve months' sum of after-tax net realized investment gains/losses, net of deferred sales inducement costs ("DSIC") and deferred acquisition costs ("DAC") amortization, unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long-duration products, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; mean reversion related impacts; block transfer reinsurance transaction impacts; gain on disposal of business; the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments; integration/restructuring charges; the impact of consolidating certain investment entities; and discontinued operations. After-tax is calculated using the statutory tax rate of 21%.

(2) Adjusted operating return on equity excluding accumulated other comprehensive income (AOCI) is calculated using the trailing twelve months of earnings excluding the after-tax net realized investment gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long-duration products, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; mean reversion related impacts; block transfer reinsurance transaction impacts; gain on the disposal of business; the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments; integration/restructuring charges; the impact of consolidating certain investment entities; and discontinued operations in the numerator, and Ameriprise Financial shareholders' equity excluding AOCI and the impact of consolidating investment entities using a five-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory tax rate of 21%.

 

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