Earnings Per Diluted Share |
Return on Equity, ex AOCI (1)
| ||
Q3 2021
|
Q3 2021
| ||
GAAP | $8.65 | GAAP |
41.7%
|
Adjusted Operating | $5.86 | Adjusted Operating |
47.8%
|
Adjusted Operating Ex. Unlocking(2)
| $5.91 |
Adjusted Operating Ex. Unlocking(2)
|
47.9%
|
•Third quarter adjusted operating earnings per diluted share excluding unlocking was $5.91, up 38 percent from last year due to strong organic growth and market appreciation.
| Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer |
"Ameriprise achieved another record quarter for client assets, revenue and earnings. We are executing our strategy well, driving organic growth and generating substantial shareholder value across market cycles.
"Consistent with our plans, our growth businesses of wealth and asset management delivered 80 percent of our adjusted operating earnings for the quarter. At the same time, our retirement and protection business is differentiated and generates significant free cash flow and earnings.
"2021 is proving to be a very strong year for Ameriprise. We are focused on maintaining our business momentum and strong performance through the remainder of the year into 2022."
| |
•Third quarter GAAP net income per diluted share was $8.65, compared to a loss of $1.14 in the prior year period, driven by the fixed annuity reinsurance transaction that closed in the quarter and market impacts.
| |
•The company continues to generate strong organic growth,
with approximately $14 billion of net inflows from Advice & Wealth Management and Asset Management, up substantially from a year ago.
| |
•Adjusted operating net revenue was $3.5 billion, an 18 percent increase from strong organic growth in Wealth and Asset Management and market appreciation.
| |
•Ameriprise generated strong profitability with pretax adjusted operating earnings excluding unlocking up 28 percent to $858 million, driven by 44 percent growth in Wealth and Asset Management. These businesses represented 80 percent of Ameriprise operating earnings in the quarter.
| |
•Assets under management and administration was $1.2 trillion, up 21 percent from strong client flows in Wealth and Asset Management, as well as market appreciation.
| |
•The company generated considerable free cash and returned $666 million of capital to shareholders in the quarter, which
was 95 percent of adjusted operating earnings.
| |
•Excess capital was strong at $2.7 billion with a strong adjusted operating return on equity excluding unlocking of 47.9 percent.
| |
Ameriprise Financial, Inc. | ||||||||||
Third Quarter Summary
| ||||||||||
Quarter Ended September 30, |
% Over/ (Under) |
Year-to-date September 30, |
% Over/ (Under) | |||||||
(in millions, except per share amounts, unaudited) | 2021 | 2020 | 2021 | 2020 | ||||||
GAAP net income | $ | 1,031 | $ | (140) | NM | $ | 2,059 | $ | 1,357 | 52% |
Adjusted operating earnings | $ | 699 | $ | 184 | NM | $ | 2,001 | $ | 1,211 | 65% |
Adjusted operating earnings excluding unlocking (see reconciliation on p. 25 and p. 26) | $ | 705 | $ | 533 | 32% | $ | 2,007 | $ | 1,560 | 29% |
GAAP net income per diluted share | $ | 8.65 | $ | (1.14) | NM | $ | 17.03 | $ | 10.73 | 59% |
Adjusted operating earnings per diluted share | $ | 5.86 | $ | 1.47 | NM | $ | 16.55 | $ | 9.57 | 73% |
Adjusted operating earnings per diluted share excluding unlocking (see reconciliation on p. 25 and p. 26) | $ | 5.91 | $ | 4.27 | 38% | $ | 16.60 | $ | 12.33 | 35% |
GAAP Return on Equity, ex. AOCI | 41.7 | % | 30.6 | % | 41.7 | % | 30.6 | % | ||
Adjusted Operating Return on Equity, ex. AOCI | 47.8 | % | 29.6 | % | 47.8 | % | 29.6 | % | ||
Adjusted Operating Return on Equity, ex. AOCI and unlocking | 47.9 | % | 35.5 | % | 47.9 | % | 35.5 | % | ||
Weighted average common shares outstanding: | ||||||||||
Basic | 116.4 | 123.0 | 118.2 | 124.8 | ||||||
Diluted | 119.2 | 124.9 | 120.9 | 126.5 | ||||||
NM Not Meaningful - variance equal to or greater than 100% |
Ameriprise Financial, Inc. | |||||
Advice & Wealth Management Segment Adjusted Operating Results | |||||
Quarter Ended September 30, |
% Over/ (Under) | ||||
(in millions, unaudited) | 2021 | 2020 | |||
Net revenues | $ | 2,048 | $ | 1,667 | 23% |
Distribution expenses | 1,238 | 998 | (24)% | ||
G&A / other expense | 351 | 349 | (1)% | ||
Pretax adjusted operating earnings | $ | 459 | $ | 320 | 43% |
Pretax adjusted operating margin | 22.4 | % | 19.2 | % | 320 bps |
Quarter Ended September 30, |
% Over/ (Under) | ||||
(in billions, unless otherwise noted) | 2021 | 2020 | |||
Total client assets | $ | 811 | $ | 667 | 22% |
Total client net flows (1)
| $ | 10.0 | $ | 6.1 | 64% |
Wrap net flows (1)
| $ | 9.4 | $ | 5.7 | 65% |
AWM cash balance | $ | 40.1 | $ | 39.4 | 2% |
Average gross yield on cash balances (in bps) | 65 | 71 | |||
Adjusted operating net revenue per advisor (TTM in thousands) | $ | 766 | $ | 668 | 15% |
Adjusted for interest rates (2)
| $ | 766 | $ | 651 | 18% |
(1) See definition on page 12.
| |||||
(2) Adjusted for impact from interest rates. See reconciliation on page 29.
|
Ameriprise Financial, Inc. | |||||
Asset Management Segment Adjusted Operating Results | |||||
Quarter Ended September 30, |
% Over/ (Under) | ||||
(in millions, unaudited) | 2021 | 2020 | |||
Net revenues | $ | 915 | $ | 739 | 24% |
Distribution expenses | 288 | 240 | (20)% | ||
G&A / other expenses | 342 | 301 | (14)% | ||
Pretax adjusted operating earnings | $ | 285 | $ | 198 | 44% |
Net pretax adjusted operating margin (1)
| 48.9 | % | 43.9 | % | |
Quarter Ended September 30, |
% Over/ (Under) | ||||
(in billions) | 2021 | 2020 | |||
Total segment AUM | $ | 583 | $ | 498 | 17% |
Net Flows | |||||
Global Retail net flows | $ | 1.8 | $ | 2.0 | (8)% |
Global Institutional net flows, ex. legacy insurance partners flows | 3.5 | (2.0) | NM | ||
Legacy insurance partners flows | (1.4) | (1.6) | 10% | ||
Total segment net flows | $ | 3.9 | $ | (1.6) | NM |
Model delivery AUA Flows (2)
| $ | 0.5 | $ | 0.3 | 72% |
(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% |
Ameriprise Financial, Inc. | |||||
Retirement & Protection Solutions Segment Adjusted Operating Results | |||||
Quarter Ended September 30, |
% Over/ (Under) | ||||
(in millions, unaudited) | 2021 | 2020 | |||
Net revenues | $ | 834 | $ | 781 | 7% |
Expenses | 647 | 870 | 26% | ||
Pretax adjusted operating earnings | $ | 187 | $ | (89) | NM |
Unlocking | (5) | (295) | 98% | ||
Pretax adjusted operating earnings excluding unlocking | $ | 192 | $ | 206 | (7)% |
NM Not Meaningful - variance equal to or greater than 100% |
Ameriprise Financial, Inc. | |||||
Corporate & Other Segment Adjusted Operating Results | |||||
Quarter Ended September 30, |
% Over/ (Under) | ||||
(in millions, unaudited) | 2021 | 2020 | |||
Corporate & Other | $ | (73) | $ | (58) | (26)% |
Closed Blocks (1)
| (8) | (144) | 94% | ||
Pretax adjusted operating earnings | $ | (81) | $ | (202) | 60% |
Unlocking/loss recognition | (3) | (147) | 98% | ||
Pretax adjusted operating earnings excluding unlocking/loss recognition | $ | (78) | $ | (55) | (42)% |
Long term care excluding unlocking/loss recognition | $ | 2 | $ | 6 | (67)% |
Fixed Annuities excluding unlocking | (7) | (3) | NM | ||
Pretax adjusted operating earnings excluding unlocking | $ | (5) | $ | 3 | NM |
(1) Long Term Care and Fixed Annuities.
| |||||
NM Not Meaningful - variance equal to or greater than 100% |
Ameriprise Financial, Inc. | ||||||||
Consolidated GAAP Results | ||||||||
(in millions, except per share amounts, unaudited) | 3 Qtr 2021 | 3 Qtr 2020 |
% Over/ (Under) | 2 Qtr 2021 |
% Over/ (Under) | |||
Revenues | ||||||||
Management and financial advice fees | $ | 2,367 | $ | 1,893 | 25% | $ | 2,251 | 5% |
Distribution fees | 458 | 400 | 15% | 452 | 1% | |||
Net investment income | 773 | 300 | NM | 278 | NM | |||
Premiums, policy and contract charges | (805) | 352 | NM | 364 | NM | |||
Other revenues | 113 | 68 | 66% | 75 | 51% | |||
Total revenues | 2,906 | 3,013 | (4)% | 3,420 | (15)% | |||
Banking and deposit interest expense | 3 | 10 | 70% | 2 | (50)% | |||
Total net revenues | 2,903 | 3,003 | (3)% | 3,418 | (15)% | |||
Expenses | ||||||||
Distribution expenses | 1,285 | 1,028 | (25)% | 1,233 | (4)% | |||
Interest credited to fixed accounts | 172 | 170 | (1)% | 124 | (39)% | |||
Benefits, claims, losses and settlement expenses | (719) | 1,104 | NM | 404 | NM | |||
Amortization of deferred acquisition costs | 9 | 85 | 89% | 63 | 86% | |||
Interest and debt expense | 64 | 37 | (73)% | 43 | (49)% | |||
General and administrative expense | 822 | 763 | (8)% | 830 | 1% | |||
Total expenses | 1,633 | 3,187 | 49% | 2,697 | 39% | |||
Pretax income | 1,270 | (184) | NM | 721 | 76% | |||
Income tax provision | 239 | (44) | NM | 130 | (84)% | |||
Net income | $ | 1,031 | $ | (140) | NM | $ | 591 | 74% |
Earnings per share | ||||||||
Basic earnings per share | $ | 8.86 | $ | (1.14) | $ | 4.99 | ||
Earnings per diluted share | $ | 8.65 | $ | (1.14) | $ | 4.88 | ||
Weighted average common shares outstanding | ||||||||
Basic | 116.4 | 123.0 | 118.4 | |||||
Diluted | 119.2 | 124.9 | 121.2 | |||||
NM Not Meaningful - variance equal to or greater than 100% |
Ameriprise Financial, Inc. | ||||||||
Consolidated Highlights and Capital Summary | ||||||||
(in millions unless otherwise noted, unaudited) | 3 Qtr 2021 | 3 Qtr 2020 |
% Over/ (Under) | 2 Qtr 2021 |
% Over/ (Under) | |||
Assets Under Management and Administration | ||||||||
Advice & Wealth Management AUM | $ | 431,861 | $ | 336,966 | 28% | $ | 426,500 | 1% |
Asset Management AUM | 583,398 | 498,004 | 17% | 593,366 | (2)% | |||
Corporate AUM | 104 | 65 | 60% | 100 | 4% | |||
Eliminations | (42,022) | (34,128) | (23)% | (42,025) | - | |||
Total Assets Under Management | 973,341 | 800,907 | 22% | 977,941 | - | |||
Total Assets Under Administration | 232,934 | 197,699 | 18% | 233,334 | - | |||
Total AUM and AUA | $ | 1,206,275 | $ | 998,606 | 21% | $ | 1,211,275 | - |
S&P 500 | ||||||||
Daily average | 4,425 | 3,316 | 33% | 4,182 | 6% | |||
Period end | 4,308 | 3,363 | 28% | 4,298 | - | |||
Weighted Equity Index (WEI) (1)
| ||||||||
Daily average | 2,983 | 2,234 | 34% | 2,858 | 4% | |||
Period end | 2,909 | 2,255 | 29% | 2,921 | (0.4)% | |||
Common shares | ||||||||
Beginning balance | 114.3 | 120.6 | (5)% | 116.0 | (1)% | |||
Repurchases | (2.1) | (2.1) | - | (1.7) | (24)% | |||
Issuances | 0.4 | 0.3 | 33% | 0.2 | NM | |||
Other | (0.2) | (0.2) | - | (0.2) | - | |||
Total common shares outstanding | 112.4 | 118.6 | (5)% | 114.3 | (2)% | |||
Restricted stock units | 3.0 | 3.2 | (6)% | 3.1 | (3)% | |||
Total basic common shares outstanding | 115.4 | 121.8 | (5)% | 117.4 | (2)% | |||
Total potentially dilutive shares | 2.9 | 1.9 | 53% | 2.7 | 7% | |||
Total diluted shares | 118.3 | 123.7 | (4)% | 120.1 | (1)% | |||
Capital Returned to Shareholders | ||||||||
Dividends paid | $ | 133 | $ | 129 | 3% | $ | 135 | (1)% |
Common stock share repurchases | 533 | 319 | 67% | 450 | 18% | |||
Total Capital Returned to Shareholders | $ | 666 | $ | 448 | 49% | $ | 585 | 14% |
(1) Weighted Equity Index is an Ameriprise calculated proxy for equity market movements calculated using a weighted average of the S&P 500, Russell 2000, Russell Midcap and MSCI EAFE indices based on North America distributed equity assets.
| ||||||||
NM Not Meaningful - variance equal to or greater than 100% |
Ameriprise Financial, Inc. | ||||||||
Advice & Wealth Management Segment Adjusted Operating Results | ||||||||
(in millions, unaudited) | 3 Qtr 2021 | 3 Qtr 2020 |
% Over/ (Under) | 2 Qtr 2021 |
% Over/ (Under) | |||
Revenues | ||||||||
Management and financial advice fees: | ||||||||
Advisory fees | $ | 1,189 | $ | 907 | 31% | $ | 1,113 | 7% |
Financial planning fees | 91 | 81 | 12% | 93 | (2)% | |||
Transaction and other fees | 94 | 89 | 6% | 93 | 1% | |||
Total management and financial advice fees | 1,374 | 1,077 | 28% | 1,299 | 6% | |||
Distribution fees: | ||||||||
Mutual funds | 219 | 186 | 18% | 212 | 3% | |||
Insurance and annuity | 246 | 202 | 22% | 252 | (2)% | |||
Other products | 96 | 91 | 5% | 98 | (2)% | |||
Total distribution fees | 561 | 479 | 17% | 562 | - | |||
Net investment income | 62 | 70 | (11)% | 63 | (2)% | |||
Other revenues | 54 | 51 | 6% | 58 | (7)% | |||
Total revenues | 2,051 | 1,677 | 22% | 1,982 | 3% | |||
Banking and deposit interest expense | 3 | 10 | 70% | 2 | (50)% | |||
Adjusted operating total net revenues | 2,048 | 1,667 | 23% | 1,980 | 3% | |||
Expenses | ||||||||
Distribution expenses | 1,238 | 998 | (24)% | 1,194 | (4)% | |||
Interest and debt expense | 3 | 3 | - | 2 | (50)% | |||
General and administrative expense | 348 | 346 | (1)% | 361 | 4% | |||
Adjusted operating expenses | 1,589 | 1,347 | (18)% | 1,557 | (2)% | |||
Pretax adjusted operating earnings | $ | 459 | $ | 320 | 43% | $ | 423 | 9% |
Pretax adjusted operating margin | 22.4 | % | 19.2 | % | 21.4 | % | ||
Pretax adjusted operating earnings by product | ||||||||
Certificates and Banking - Combined | $ | 17 | $ | 17 | - | $ | 18 | (6)% |
Wealth Management & Distribution | 442 | 303 | 46% | 405 | 9% | |||
Pretax adjusted operating earnings | $ | 459 | $ | 320 | 43% | $ | 423 | 9% |
Ameriprise Financial, Inc. | ||||||||
Advice & Wealth Management Segment Operating Metrics | ||||||||
(in millions unless otherwise noted, unaudited) | 3 Qtr 2021 | 3 Qtr 2020 |
% Over/ (Under) | 2 Qtr 2021 |
% Over/ (Under) | |||
AWM Total Client Assets | $ | 811,189 | $ | 666,800 | 22% | $ | 807,335 | - |
Total Client Flows (1)
| $ | 10,043 | $ | 6,130 | 64% | $ | 9,530 | 5% |
Total Wrap Accounts | ||||||||
Beginning assets | $ | 430,003 | $ | 317,615 | 35% | $ | 399,817 | 8% |
Net flows (2)
| 9,404 | 5,701 | 65% | 10,024 | (6)% | |||
Market appreciation (depreciation) and other (2)
| (4,032) | 16,634 | NM | 20,162 | NM | |||
Total wrap ending assets | $ | 435,375 | $ | 339,950 | 28% | $ | 430,003 | 1% |
Advisory wrap account assets ending balance (3)
| $ | 430,546 | $ | 335,980 | 28% | $ | 425,200 | 1% |
Brokerage Cash & Certificates Balances | ||||||||
On-balance sheet (Net Investment Income) | ||||||||
On-balance sheet - broker dealer | $ | 3,441 | $ | 3,345 | 3% | $ | 3,383 | 2% |
On-balance sheet - bank | 9,815 | 6,320 | 55% | 8,671 | 13% | |||
On-balance sheet - certificate | 5,442 | 7,165 | (24)% | 5,749 | (5)% | |||
Total on-balance sheet | $ | 18,698 | $ | 16,830 | 11% | $ | 17,803 | 5% |
Off-balance sheet (Distribution Fees) | ||||||||
Off-balance sheet - broker dealer | $ | 21,374 | $ | 22,591 | (5)% | $ | 21,391 | - |
Total brokerage cash & certificates balances | $ | 40,072 | $ | 39,421 | 2% | $ | 39,194 | 2% |
Gross Fee Yield | ||||||||
On-balance sheet - broker dealer | 0.06 | % | 0.11 | % | 0.05 | % | ||
On-balance sheet - bank | 1.44 | % | 1.53 | % | 1.32 | % | ||
On-balance sheet - certificates | 1.06 | % | 1.45 | % | 1.13 | % | ||
Off-balance sheet - broker dealer | 0.28 | % | 0.29 | % | 0.27 | % | ||
Weighted Average Gross Fee Yield | 0.65 | % | 0.71 | % | 0.63 | % | ||
Financial Advisors | ||||||||
Employee advisors | 2,112 | 2,123 | (1)% | 2,104 | - | |||
Franchisee advisors | 7,961 | 7,782 | 2% | 7,943 | - | |||
Total financial advisors | 10,073 | 9,905 | 2% | 10,047 | - | |||
Advisor Retention | ||||||||
Employee | 91.7 | % | 91.9 | % | 91.4 | % | ||
Franchisee | 94.3 | % | 93.6 | % | 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) Beginning in Q1 2021, wrap net flows is calculated including dividends and interest less fees, which were previously recorded in market appreciation (depreciation) and other. Net flows excludes short-term and long-term capital gain distributions. Prior periods have been restated.
| ||||||||
(3) Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts. Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.
| ||||||||
NM Not Meaningful - variance equal to or greater than 100% |
Ameriprise Financial, Inc. | ||||||||
Asset Management Segment Adjusted Operating Results | ||||||||
(in millions, unaudited) | 3 Qtr 2021 | 3 Qtr 2020 |
% Over/ (Under) | 2 Qtr 2021 |
% Over/ (Under) | |||
Revenues | ||||||||
Management and financial advice fees: | ||||||||
Asset management fees: | ||||||||
Retail | $ | 587 | $ | 466 | 26% | $ | 567 | 4% |
Institutional | 143 | 122 | 17% | 131 | 9% | |||
Transaction and other fees | 57 | 47 | 21% | 56 | 2% | |||
Revenue from other sources (1)
| 7 | 6 | 17% | 4 | 75% | |||
Total management and financial advice fees | 794 | 641 | 24% | 758 | 5% | |||
Distribution fees: | ||||||||
Mutual funds | 70 | 59 | 19% | 69 | 1% | |||
Insurance and annuity | 50 | 45 | 11% | 49 | 2% | |||
Total distribution fees | 120 | 104 | 15% | 118 | 2% | |||
Net investment income | 1 | (6) | NM | 2 | (50)% | |||
Other revenues | - | - | - | 1 | NM | |||
Total revenues | 915 | 739 | 24% | 879 | 4% | |||
Banking and deposit interest expense | - | - | - | - | - | |||
Adjusted operating total net revenues | 915 | 739 | 24% | 879 | 4% | |||
Expenses | ||||||||
Distribution expenses | 288 | 240 | (20)% | 282 | (2)% | |||
Amortization of deferred acquisition costs | 3 | 2 | (50)% | 3 | - | |||
Interest and debt expense | 1 | 2 | 50% | 1 | - | |||
General and administrative expense | 338 | 297 | (14)% | 340 | 1% | |||
Adjusted operating expenses | 630 | 541 | (16)% | 626 | (1)% | |||
Pretax adjusted operating earnings | $ | 285 | $ | 198 | 44% | $ | 253 | 13% |
Net Pretax Adjusted Operating Margin Reconciliation | ||||||||
Adjusted operating total net revenues | $ | 915 | $ | 739 | 24% | $ | 879 | 4% |
Distribution pass thru revenues | (231) | (193) | (20)% | (225) | (3)% | |||
Subadvisory and other pass thru revenues | (97) | (74) | (31)% | (94) | (3)% | |||
Net adjusted operating revenues | $ | 587 | $ | 472 | 24% | $ | 560 | 5% |
Pretax adjusted operating earnings | $ | 285 | $ | 198 | 44% | $ | 253 | 13% |
Adjusted operating net investment income | (1) | 6 | NM | (2) | 50% | |||
Amortization of intangibles | 3 | 3 | - | 3 | - | |||
Net adjusted operating earnings | $ | 287 | $ | 207 | 39% | $ | 254 | 13% |
Pretax adjusted operating margin | 31.1 | % | 26.8 | % | 28.8 | % | ||
Net pretax adjusted operating margin (2)
| 48.9 | % | 43.9 | % | 45.4 | % | ||
Performance fees (3)
| ||||||||
Performance fees | $ | 13 | $ | - | - | $ | 3 | NM |
Performance fee related to general and administrative expense | - | - | - | - | - | |||
Net performance fees | $ | 13 | $ | - | - | $ | 3 | NM |
(1) Includes revenue from separate accounts that qualify as investment contracts under insurance accounting standards.
| ||||||||
(2) Calculated as net adjusted operating earnings as a percentage of net adjusted operating revenues.
| ||||||||
(3) Performance fees do not include CLO incentive fees.
| ||||||||
NM Not Meaningful - variance equal to or greater than 100%. |
Ameriprise Financial, Inc. | ||||||||
Asset Management Segment Operating Metrics | ||||||||
(in millions, unaudited) | 3 Qtr 2021 | 3 Qtr 2020 |
% Over/ (Under) | 2 Qtr 2021 |
% Over/ (Under) | |||
Total Managed Assets by Type | ||||||||
Equity | $ | 332,715 | $ | 264,840 | 26% | $ | 339,032 | (2)% |
Fixed income | 199,253 | 188,844 | 6% | 203,101 | (2)% | |||
Money market | 5,752 | 5,076 | 13% | 5,484 | 5% | |||
Alternative | 3,829 | 3,465 | 11% | 3,839 | - | |||
Hybrid and other | 41,849 | 35,779 | 17% | 41,910 | - | |||
Total managed assets by type | $ | 583,398 | $ | 498,004 | 17% | $ | 593,366 | (2)% |
Average Managed Assets by Type (1)
| ||||||||
Equity | $ | 340,804 | $ | 264,206 | 29% | $ | 330,801 | 3% |
Fixed income | 200,712 | 187,171 | 7% | 200,246 | - | |||
Money market | 5,831 | 5,100 | 14% | 5,823 | - | |||
Alternative | 3,828 | 3,340 | 15% | 3,812 | - | |||
Hybrid and other | 42,098 | 35,422 | 19% | 41,148 | 2% | |||
Total average managed assets by type | $ | 593,273 | $ | 495,239 | 20% | $ | 581,830 | 2% |
Managed Assets Rollforward | ||||||||
Global Retail Funds | ||||||||
Beginning assets | $ | 359,476 | $ | 274,136 | 31% | $ | 340,270 | 6% |
Inflows | 16,442 | 14,498 | 13% | 19,371 | (15)% | |||
Outflows | (15,509) | (13,192) | (18)% | (17,075) | 9% | |||
Net VP/VIT fund flows | (1,101) | (691) | (59)% | (967) | (14)% | |||
Net new flows | (168) | 615 | NM | 1,329 | NM | |||
Reinvested dividends | 2,001 | 1,375 | 46% | 2,874 | (30)% | |||
Net flows | 1,833 | 1,990 | (8)% | 4,203 | (56)% | |||
Distributions | (2,151) | (1,540) | (40)% | (3,375) | 36% | |||
Market appreciation (depreciation) and other | (2,282) | 13,848 | NM | 18,113 | NM | |||
Foreign currency translation (2)
| (1,157) | 1,488 | NM | 265 | NM | |||
Total ending assets | 355,719 | 289,922 | 23% | 359,476 | (1)% | |||
% of total retail assets sub-advised | 16.0 | % | 18.1 | % | 15.9 | % | ||
Global Institutional | ||||||||
Beginning assets | 233,890 | 201,985 | 16% | 223,861 | 4% | |||
Inflows (3)
| 9,428 | 7,021 | 34% | 9,320 | 1% | |||
Outflows (3)
| (7,356) | (10,562) | 30% | (6,853) | (7)% | |||
Net flows | 2,072 | (3,541) | NM | 2,467 | (16)% | |||
Market appreciation (depreciation) and other (4)
| (5,895) | 6,546 | NM | 7,125 | NM | |||
Foreign currency translation (2)
| (2,388) | 3,092 | NM | 437 | NM | |||
Total ending assets | 227,679 | 208,082 | 9% | 233,890 | (3)% | |||
Total managed assets | $ | 583,398 | $ | 498,004 | 17% | $ | 593,366 | (2)% |
Total net flows | $ | 3,905 | $ | (1,551) | NM | $ | 6,670 | (41)% |
Legacy insurance partners flows | $ | (1,402) | $ | (1,555) | 10% | $ | (1,353) | (4)% |
Total Assets Under Advisement (5)
| $ | 19,742 | $ | 12,714 | 55% | $ | 18,036 | 9% |
Model delivery AUA flows (6)
| $ | 514 | $ | 299 | 72% | $ | 912 | (44)% |
(1) Average ending balances are calculated using the average of the prior period's ending balance and all months in the current period.
| ||||||||
(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 beginning in Q1 2020 and Ameriprise Bank, FSB beginning in Q1 2021.
| ||||||||
(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 beginning in Q1 2020 and Ameriprise Bank, FSB beginning in Q1 2021.
| ||||||||
(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.
| ||||||||
NM Not Meaningful - variance equal to or greater than 100%. |
Ameriprise Financial, Inc. | ||||
Asset Management Segment Performance Metrics | ||||
3 Qtr 2021 | ||||
Retail Fund Rankings in Top 2 Quartiles or Above Index Benchmark - Asset Weighted | 1 year | 3 year | 5 year | 10 year |
Equity | 46% | 86% | 85% | 88% |
Fixed Income | 85% | 88% | 94% | 91% |
Asset Allocation | 41% | 87% | 95% | 89% |
4- or 5-star Morningstar rated funds | Overall | 3 year | 5 year | 10 year |
Number of Rated Funds | 105 | 91 | 91 | 84 |
Percent of Rated Assets | 66% | 61% | 57% | 67% |
Retail Fund performance rankings for each fund is measured on a consistent basis against the most appropriate peer group or index. Peer Groupings are defined by either Lipper, IA, or Morningstar and based primarily on the Institutional Share Class, Net of Fees. Comparisons to Index are measured Gross of Fees.
| ||||
To calculate asset weighted performance, the sum of the total assets of the funds with above median ranking are divided by total assets of all funds. Funds with more assets will receive a greater share of the total percentage above or below median.
| ||||
Aggregated Asset Allocation Funds may include funds that invest in other Columbia or Threadneedle branded mutual funds included in both equity and fixed income.
| ||||
Morningstar as of 09/30/21. Columbia funds are available for purchase by U.S. customers. Out of 90 Columbia funds (Inst. shares) rated, 16 received a 5-star Overall Rating and 36 received a 4-star Overall Rating. Out of 94 Threadneedle funds (highest rated share class) rated, 19 received a 5-star Overall Rating and 34 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.
© 2021 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 (1) Adjusted Operating Results
| ||||||||
(in millions, unaudited) | 3 Qtr 2021 | 3 Qtr 2020 |
% Over/ (Under) | 2 Qtr 2021 |
% Over/ (Under) | |||
Revenues | ||||||||
Management and financial advice fees | $ | 239 | $ | 213 | 12% | $ | 234 | 2% |
Distribution fees | 125 | 111 | 13% | 122 | 2% | |||
Net investment income | 114 | 121 | (6)% | 127 | (10)% | |||
Premiums, policy and contract charges | 353 | 333 | 6% | 325 | 9% | |||
Other revenues | 3 | 3 | - | - | - | |||
Total revenues | 834 | 781 | 7% | 808 | 3% | |||
Banking and deposit interest expense | - | - | - | - | - | |||
Adjusted operating total net revenues | 834 | 781 | 7% | 808 | 3% | |||
Expenses | ||||||||
Distribution expenses | 134 | 110 | (22)% | 134 | - | |||
Interest credited to fixed accounts | 99 | 100 | 1% | 98 | (1)% | |||
Benefits, claims, losses and settlement expenses | 323 | 421 | 23% | 241 | (34)% | |||
Amortization of deferred acquisition costs | 5 | 157 | 97% | 70 | 93% | |||
Interest and debt expense | 9 | 8 | (13)% | 9 | - | |||
General and administrative expense | 77 | 74 | (4)% | 74 | (4)% | |||
Adjusted operating expenses | 647 | 870 | 26% | 626 | (3)% | |||
Pretax adjusted operating earnings | $ | 187 | $ | (89) | NM | $ | 182 | 3% |
(1) Retirement & Protection Solutions segment includes Retirement Solutions (Variable Annuities and Payout Annuities) and Protection Solutions (Life and Disability Insurance). Fixed Annuities moved to the Corporate & Other segment in Q3 2020 as a closed block. Prior periods have been restated.
| ||||||||
NM Not Meaningful - variance equal to or greater than 100% |
Ameriprise Financial, Inc. | ||||||||
Retirement & Protection Solutions Segment Operating Metrics | ||||||||
(in millions, unaudited) | 3 Qtr 2021 | 3 Qtr 2020 |
% Over/ (Under) | 2 Qtr 2021 |
% Over/ (Under) | |||
Variable Annuities Rollforwards | ||||||||
Beginning balance | $ | 90,494 | $ | 77,481 | 17% | $ | 86,964 | 4% |
Deposit | 1,421 | 1,109 | 28% | 1,597 | (11)% | |||
Withdrawals and terminations | (1,900) | (1,567) | (21)% | (1,946) | 2% | |||
Net flows | (479) | (458) | (5)% | (349) | (37)% | |||
Investment performance and interest credited | (380) | 2,823 | NM | 3,879 | NM | |||
Other | - | - | - | - | - | |||
Total ending balance - contract accumulation values | $ | 89,635 | $ | 79,846 | 12% | $ | 90,494 | (1)% |
Variable annuities fixed sub-accounts | $ | 5,020 | $ | 5,107 | (2)% | $ | 5,052 | (1)% |
Life Insurance In Force | $ | 197,523 | $ | 195,007 | 1% | $ | 196,794 | - |
Net Amount at Risk (Life) | $ | 37,766 | $ | 38,403 | (2)% | $ | 37,465 | 1% |
Net Policyholder Reserves | ||||||||
VUL/UL | $ | 14,565 | $ | 12,836 | 13% | $ | 14,593 | - |
Term and whole life | 168 | 177 | (5)% | 171 | (2)% | |||
Disability insurance | 488 | 504 | (3)% | 494 | (1)% | |||
Other insurance | 623 | 652 | (4)% | 629 | (1)% | |||
Total net policyholder reserves | $ | 15,844 | $ | 14,169 | 12% | $ | 15,887 | - |
DAC Ending Balances | ||||||||
Variable Annuities DAC | $ | 1,840 | $ | 1,577 | 17% | $ | 1,799 | 2% |
Life and Health DAC | $ | 834 | $ | 817 | 2% | $ | 799 | 4% |
NM Not Meaningful - variance equal to or greater than 100% |
Ameriprise Financial, Inc. | ||||||||
Corporate Segment Adjusted Operating Results and Metrics | ||||||||
(in millions, unaudited) | 3 Qtr 2021 | 3 Qtr 2020 |
% Over/ (Under) | 2 Qtr 2021 |
% 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 | (17) | (14) | (21)% | (20) | 15% | |||
Premiums, policy and contract charges | - | - | - | 1 | NM | |||
Other revenues | 1 | 3 | (67)% | 3 | (67)% | |||
Total revenues | (16) | (11) | (45)% | (16) | - | |||
Banking and deposit interest expense | - | - | - | 1 | NM | |||
Adjusted operating total net revenues | (16) | (11) | (45)% | (17) | 6% | |||
Expenses | ||||||||
Distribution expenses | - | - | - | - | - | |||
Interest credited to fixed accounts | - | - | - | - | - | |||
Benefits, claims, losses and settlement expenses | - | 1 | NM | - | - | |||
Amortization of deferred acquisition costs | - | - | - | - | - | |||
Interest and debt expense | 13 | 6 | NM | 9 | (44)% | |||
General and administrative expense | 44 | 40 | (10)% | 48 | 8% | |||
Adjusted operating expenses | 57 | 47 | (21)% | 57 | - | |||
Pretax adjusted operating earnings (loss) | $ | (73) | $ | (58) | (26)% | $ | (74) | 1% |
NM Not Meaningful - variance equal to or greater than 100% |
Ameriprise Financial, Inc. | ||||||||
Corporate Segment Adjusted Operating Results and Metrics | ||||||||
(in millions, unaudited) | 3 Qtr 2021 | 3 Qtr 2020 |
% Over/ (Under) | 2 Qtr 2021 |
% Over/ (Under) | |||
Long Term Care Adjusted Operating Income Statements | ||||||||
Revenues | ||||||||
Management and financial advice fees | $ | - | $ | - | - | $ | - | - |
Distribution fees | - | - | - | - | - | |||
Net investment income | 36 | 40 | (10)% | 38 | (5)% | |||
Premiums, policy and contract charges | 26 | 26 | - | 24 | 8% | |||
Other revenues | - | - | - | - | - | |||
Total revenues | 62 | 66 | (6)% | 62 | - | |||
Banking and deposit interest expense | - | - | - | - | - | |||
Adjusted operating total net revenues | 62 | 66 | (6)% | 62 | - | |||
Expenses | ||||||||
Distribution expenses | (3) | (3) | - | (3) | - | |||
Interest credited to fixed accounts | - | - | - | - | - | |||
Benefits, claims, losses and settlement expenses | 58 | 194 | 70% | 52 | (12)% | |||
Amortization of deferred acquisition costs | - | - | - | - | - | |||
Interest and debt expense | 3 | 3 | - | 2 | (50)% | |||
General and administrative expense | 5 | 7 | 29% | 8 | 38% | |||
Adjusted operating expenses | 63 | 201 | 69% | 59 | (7)% | |||
Pretax adjusted operating earnings (loss) | $ | (1) | $ | (135) | 99% | $ | 3 | NM |
Long Term Care Policyholder Reserves, net of reinsurance (1)
| ||||||||
Active Life Reserves | $ | 2,501 | $ | 2,472 | 1% | $ | 2,514 | (1)% |
Disabled Life Reserves | 558 | 568 | (2)% | 548 | 2% | |||
Total long term care policyholder reserves, net of reinsurance | $ | 3,059 | $ | 3,040 | 1% | $ | 3,062 | - |
(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) | 3 Qtr 2021 | 3 Qtr 2020 |
% Over/ (Under) | 2 Qtr 2021 |
% Over/ (Under) | |||
Fixed Annuities Adjusted Operating Income Statements | ||||||||
Revenues | ||||||||
Management and financial advice fees | $ | - | $ | - | - | $ | - | - |
Distribution fees | - | - | - | - | - | |||
Net investment income | 12 | 67 | (82)% | 61 | (80)% | |||
Premiums, policy and contract charges | - | - | - | - | - | |||
Other revenues | 55 | 10 | NM | 13 | NM | |||
Total revenues | 67 | 77 | (13)% | 74 | (9)% | |||
Banking and deposit interest expense | - | - | - | - | - | |||
Adjusted operating total net revenues | 67 | 77 | (13)% | 74 | (9)% | |||
Expenses | ||||||||
Distribution expenses | 1 | 1 | - | 1 | - | |||
Interest credited to fixed accounts | 64 | 66 | 3% | 62 | (3)% | |||
Benefits, claims, losses and settlement expenses | 1 | 9 | 89% | 2 | 50% | |||
Amortization of deferred acquisition costs | 1 | (2) | NM | 2 | 50% | |||
Interest and debt expense | - | 6 | NM | 6 | NM | |||
General and administrative expense | 7 | 6 | (17)% | 7 | - | |||
Adjusted operating expenses | 74 | 86 | 14% | 80 | 8% | |||
Pretax adjusted operating earnings (loss) | $ | (7) | $ | (9) | 22% | $ | (6) | (17)% |
NM Not Meaningful - variance equal to or greater than 100% |
Ameriprise Financial, Inc. | ||||||||
Eliminations (1) Adjusted Operating Results
| ||||||||
(in millions, unaudited) | 3 Qtr 2021 | 3 Qtr 2020 |
% Over/ (Under) | 2 Qtr 2021 |
% Over/ (Under) | |||
Revenues | ||||||||
Management and financial advice fees | $ | (38) | $ | (37) | (3)% | $ | (38) | - |
Distribution fees | (348) | (294) | (18)% | (350) | 1% | |||
Net investment income | (1) | (4) | 75% | (5) | 80% | |||
Premiums, policy and contract charges | (8) | (7) | (14)% | (7) | (14)% | |||
Other revenues | - | - | - | - | - | |||
Total revenues | (395) | (342) | (15)% | (400) | 1% | |||
Banking and deposit interest expense | - | - | - | (1) | NM | |||
Adjusted operating total net revenues | (395) | (342) | (15)% | (399) | 1% | |||
Expenses | ||||||||
Distribution expenses | (373) | (318) | 17% | (375) | (1)% | |||
Interest credited to fixed accounts | - | - | - | - | - | |||
Benefits, claims, losses and settlement expenses | (6) | (4) | 50% | (5) | 20% | |||
Amortization of deferred acquisition costs | - | - | - | - | - | |||
Interest and debt expense | (3) | (2) | 50% | (3) | - | |||
General and administrative expense | (13) | (18) | (28)% | (16) | (19)% | |||
Adjusted operating expenses | (395) | (342) | 15% | (399) | (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) |
September 30, 2021 |
September 30, 2020 |
June 30, 2021 | |||
Long-term Debt Summary | ||||||
Senior notes | $ | 2,800 | $ | 2,800 | $ | 2,800 |
Finance lease liabilities | 41 | 47 | 44 | |||
Fair value of hedges, unamortized discount and debt issuance costs | (10) | (14) | (11) | |||
Total Ameriprise Financial long-term debt | 2,831 | 2,833 | 2,833 | |||
Non-recourse debt of consolidated investment entities | 2,163 | 1,901 | 2,558 | |||
Total long-term debt | $ | 4,994 | $ | 4,734 | $ | 5,391 |
Total Ameriprise Financial long-term debt | $ | 2,831 | $ | 2,833 | $ | 2,833 |
Fair value of hedges, unamortized discount and debt issuance costs | 10 | 14 | 11 | |||
Finance lease liabilities | (41) | (47) | (44) | |||
Total Ameriprise Financial long-term debt excluding fair value of hedges, unamortized discount, debt issuance costs and finance lease liabilities | $ | 2,800 | $ | 2,800 | $ | 2,800 |
Total equity (1)
| $ | 5,707 | $ | 6,067 | $ | 5,686 |
Equity of consolidated investment entities | (5) | (5) | (6) | |||
Total equity excluding CIEs | $ | 5,702 | $ | 6,062 | $ | 5,680 |
Total Ameriprise Financial capital | $ | 8,538 | $ | 8,900 | $ | 8,519 |
Total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, debt issuance costs, finance lease liabilities and equity of CIEs | $ | 8,502 | $ | 8,862 | $ | 8,480 |
Debt to capital | ||||||
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital | 33.2 | % | 31.8 | % | 33.3 | % |
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, debt issuance costs, finance lease liabilities and equity of CIEs (1)
| 32.9 | % | 31.6 | % | 33.0 | % |
(1) Includes accumulated other comprehensive income, net of tax.
| ||||||
Ameriprise Financial, Inc. | ||||
Consolidated Balance Sheets | ||||
(in millions, unaudited) |
September 30, 2021 |
December 31, 2020 | ||
Assets | ||||
Cash and cash equivalents | $ | 7,736 | $ | 6,751 |
Cash of consolidated investment entities | 68 | 94 | ||
Investments | 33,518 | 41,031 | ||
Investments of consolidated investment entities | 2,170 | 1,918 | ||
Separate account assets | 95,129 | 92,611 | ||
Receivables | 15,920 | 7,819 | ||
Receivables of consolidated investment entities | 18 | 16 | ||
Deferred acquisition costs | 2,735 | 2,532 | ||
Restricted and segregated cash and investments | 2,351 | 2,558 | ||
Other assets | 11,079 | 10,551 | ||
Other assets of consolidated investment entities | 2 | 2 | ||
Total Assets | $ | 170,726 | $ | 165,883 |
Liabilities | ||||
Policyholder account balances, future policy benefits and claims | $ | 34,864 | $ | 33,992 |
Separate account liabilities | 95,129 | 92,611 | ||
Customer deposits | 18,693 | 17,641 | ||
Short-term borrowings | 200 | 200 | ||
Long-term debt | 2,831 | 2,831 | ||
Debt of consolidated investment entities | 2,163 | 1,913 | ||
Accounts payable and accrued expenses | 2,146 | 1,998 | ||
Other liabilities | 8,922 | 8,761 | ||
Other liabilities of consolidated investment entities | 71 | 69 | ||
Total Liabilities | 165,019 | 160,016 | ||
Equity | ||||
Ameriprise Financial | ||||
Common shares ($.01 par) | 3 | 3 | ||
Additional paid-in capital | 9,118 | 8,822 | ||
Retained earnings | 16,955 | 15,292 | ||
Treasury stock | (20,468) | (18,879) | ||
Accumulated other comprehensive income, net of tax | 99 | 629 | ||
Total Equity | 5,707 | 5,867 | ||
Total Liabilities and Equity | $ | 170,726 | $ | 165,883 |
Ameriprise Financial, Inc. | ||||
Disclosed Items - Included in Adjusted Operating Earnings | ||||
(in millions, unaudited) | 3 Qtr 2021 | |||
RPS | Corporate | |||
Valuation Assumption & Model Changes (1)
|
Valuation Assumption & Model Changes (1)
| |||
Revenues | ||||
Management and financial advice fees | $ | - | $ | - |
Distribution fees | - | - | ||
Net investment income | 19 | - | ||
Premiums, policy and contract charges | - | - | ||
Other revenues | - | - | ||
Total revenues | 19 | - | ||
Banking and deposit interest expense | - | - | ||
Adjusted operating total net revenues | 19 | - | ||
Expenses | ||||
Distribution expenses | - | - | ||
Interest credited to fixed accounts | - | - | ||
Benefits, claims, losses and settlement expenses | 89 | 3 | ||
Amortization of deferred acquisition costs | (65) | - | ||
Interest and debt expense | - | - | ||
General and administrative expense | - | - | ||
Adjusted operating expenses | 24 | 3 | ||
Pretax adjusted operating earnings (loss) | $ | (5) | $ | (3) |
(1) Net pretax impact of model changes and the annual review/updating of valuation assumptions, including the annual long term care review
| ||||
Ameriprise Financial, Inc. | ||||||||||
Reconciliation Table: Earnings | ||||||||||
Quarter Ended September 30, |
Per Diluted Share Quarter Ended September 30, |
% Over/ (Under) | ||||||||
(in millions, except per share amounts, unaudited) | 2021 | 2020 | 2021 | 2020 | ||||||
Net income | $ | 1,031 | $ | (140) | $ | 8.65 | $ | (1.14) |
(3)
| NM |
Add: Basic to diluted share conversion | - | - | - | 0.02 |
(4)
| |||||
Less: Net realized investment gains (losses) (1)
| 12 | 4 | 0.10 | 0.03 | ||||||
Add: Market impact on non-traditional long-duration products (1)
| 94 | 431 | 0.79 | 3.45 | ||||||
Add: Mean reversion-related impacts (1)
| (9) | (17) | (0.08) | (0.14) | ||||||
Add: Market impact of hedges on investments (1)
| 23 | - | 0.19 | - | ||||||
Less: Block transfer reinsurance transaction impacts (1)
| (521) | - | (4.37) | - | ||||||
Add: Integration/restructuring charges (1)
| 7 | 1 | 0.06 | 0.01 | ||||||
Less: Net income (loss) attributable to consolidated investment entities | 2 | - | 0.02 | - | ||||||
Add: Tax effect of adjustments (2)
| 88 | (87) | 0.74 | (0.70) | ||||||
Adjusted operating earnings | $ | 699 | $ | 184 | $ | 5.86 | $ | 1.47 | NM | |
Less: Pretax impact of annual unlocking/loss recognition | (8) | (442) | (0.07) | (3.54) | ||||||
Less: Tax effect of annual unlocking/loss recognition | 2 | 93 | 0.02 | 0.74 | ||||||
Adjusted operating earnings excluding Unlocking | $ | 705 | $ | 533 | $ | 5.91 | $ | 4.27 | 38% | |
Weighted average common shares outstanding: | ||||||||||
Basic | 116.4 | 123.0 | ||||||||
Diluted | 119.2 | 124.9 | ||||||||
(1) Pretax adjusted operating adjustment.
| ||||||||||
(2) Calculated using the statutory tax rate of 21%.
| ||||||||||
(3) Diluted shares used in this calculation represent basic shares due to the net loss. Using actual diluted shares would result in antidilution.
| ||||||||||
(4) Represents the difference of the per share amount for net loss using basic shares compared to the per share amount for net loss using diluted shares.
| ||||||||||
NM Not Meaningful - variance equal to or greater than 100% |
Ameriprise Financial, Inc. | |||||||||
Reconciliation Table: Earnings | |||||||||
Year-to-date September 30, |
Per Diluted Share Year-to-date September 30, |
% Over/ (Under) | |||||||
(in millions, except per share amounts, unaudited) | 2021 | 2020 | 2021 | 2020 | |||||
Net income | $ | 2,059 | $ | 1,357 | $ | 17.03 | $ | 10.73 | 59% |
Add: Basic to diluted share conversion | - | - | - | - | |||||
Less: Net realized investment gains (losses) (1)
| 78 | (18) | 0.65 | (0.14) | |||||
Add: Market impact on non-traditional long-duration products (1)
| 577 | (239) | 4.78 | (1.89) | |||||
Add: Mean reversion-related impacts (1)
| (107) | 30 | (0.89) | 0.24 | |||||
Add: Market impact of hedges on investments (1)
| 40 | - | 0.33 | - | |||||
Add: Block transfer reinsurance transaction impacts (1)
| (521) | - | (4.31) | - | |||||
Add: Integration/restructuring charges (1)
| 14 | 4 | 0.12 | 0.03 | |||||
Less: Net income (loss) attributable to consolidated investment entities | (1) | (2) | (0.01) | (0.01) | |||||
Add: Tax effect of adjustments (2)
| 16 | 39 | 0.13 | 0.31 | |||||
Adjusted operating earnings | $ | 2,001 | $ | 1,211 | $ | 16.55 | $ | 9.57 | 73% |
Less: Pretax impact of annual unlocking/loss recognition | (8) | (442) | (0.07) | (3.49) | |||||
Less: Tax effect of annual unlocking/loss recognition | 2 | 93 | 0.02 | 0.73 | |||||
Adjusted operating earnings excluding Unlocking | $ | 2,007 | $ | 1,560 | $ | 16.60 | $ | 12.33 | 35% |
Weighted average common shares outstanding: | |||||||||
Basic | 118.2 | 124.8 | |||||||
Diluted | 120.9 | 126.5 | |||||||
(1) Pretax adjusted operating adjustment.
| |||||||||
(2) Calculated using the statutory tax rate of 21%.
| |||||||||
Ameriprise Financial, Inc. | ||||
Reconciliation Table: Pretax Adjusted Operating Earnings and Pretax Adjusted Operating Margin | ||||
Quarter Ended September 30, | ||||
(in millions, unaudited) | 2021 | 2020 | ||
Total net revenues | $ | 2,903 | $ | 3,003 |
Less: Net realized investment gains (losses) | 14 | 4 | ||
Less: Market impact on non-traditional long-duration products | (1) | 1 | ||
Less: Mean Reversion related impacts | - | - | ||
Less: Market impact of hedges on investments | (23) | - | ||
Less: Block transfer reinsurance transaction impacts | (644) | - | ||
Less: Integration/restructuring charges | - | - | ||
Less: CIEs revenue | 42 | 21 | ||
Adjusted operating total net revenues | 3,515 | 2,977 | ||
Less: Annual unlocking/loss recognition | 19 | (1) | ||
Adjusted operating total net revenues excluding Unlocking | $ | 3,496 | $ | 2,978 |
Total expenses | $ | 1,633 | $ | 3,187 |
Less: CIEs expenses | 40 | 21 | ||
Less: Integration/restructuring charges | 7 | 1 | ||
Less: Market impact on non-traditional long-duration products | 93 | 432 | ||
Less: Mean reversion-related impacts | (9) | (17) | ||
Less: Block transfer reinsurance transaction impacts | (1,165) | - | ||
Less: DAC/DSIC offset to net realized investment gains (losses) | 2 | - | ||
Adjusted operating expenses | $ | 2,665 | $ | 2,750 |
Less: Annual unlocking/loss recognition | 27 | 441 | ||
Adjusted operating total net expenses excluding Unlocking | $ | 2,638 | $ | 2,309 |
Pretax income | $ | 1,270 | $ | (184) |
Pretax adjusted operating earnings | $ | 850 | $ | 227 |
Pretax adjusted operating earnings excluding Unlocking | $ | 858 | $ | 669 |
Pretax income margin | 43.7 | % | (6.1) | % |
Pretax adjusted operating margin | 24.2 | % | 7.6 | % |
Pretax adjusted operating margin excluding Unlocking | 24.5 | % | 22.5 | % |
Ameriprise Financial, Inc. | ||||
Reconciliation Table: Effective Tax Rate | ||||
Quarter Ended September 30, 2020 | ||||
(in millions, unaudited) | GAAP | Adjusted Operating | ||
Pretax income | $ | (184) | $ | 227 |
Income tax provision | $ | (44) | $ | 43 |
Effective tax rate | 23.5 | % | 18.9 | % |
Quarter Ended September 30, 2021 | ||||
(in millions, unaudited) | GAAP | Adjusted Operating | ||
Pretax income | $ | 1,270 | $ | 850 |
Income tax provision | $ | 239 | $ | 151 |
Effective tax rate | 18.8 | % | 17.8 | % |
Year-to-date September 30, 2021 | ||||
(in millions, unaudited) | GAAP | Adjusted Operating | ||
Pretax income | $ | 2,484 | $ | 2,410 |
Income tax provision | $ | 425 | $ | 409 |
Effective tax rate | 17.1 | % | 17.0 | % |
Ameriprise Financial, Inc. | |||||||||||||||||
Reconciliation Table: Advice & Wealth Management Adjusted Revenue Per Advisor | |||||||||||||||||
(unaudited) |
4Q 2019 |
1Q 2020 |
2Q 2020 |
3Q 2020 |
4Q 2020 |
1Q 2021 |
2Q 2021 |
3Q 2021 |
% Over/ (Under) | ||||||||
Total Net Revenue ($ in M) | $ | 1,710 | $ | 1,695 | $ | 1,537 | $ | 1,667 | $ | 1,776 | $ | 1,879 | $ | 1,980 | $ | 2,048 | |
Interest Revenue ($ in M) | $ | (92) | $ | (78) | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |
Advisor Count | 9,871 | 9,878 | 9,894 | 9,905 | 9,922 | 10,031 | 10,047 | 10,073 | |||||||||
Revenue Per Advisor ($ in K) | $ | 173 | $ | 172 | $ | 155 | $ | 168 | $ | 179 | $ | 187 | $ | 197 | $ | 203 | 21% |
Revenue Per Advisor excluding short-term interest rate impact ($ in K) | $ | 164 | $ | 164 | $ | 155 | $ | 168 | $ | 179 | $ | 187 | $ | 197 | $ | 203 | 21% |
Revenue Per Advisor TTM ($ in K) | $ | 668 | $ | 766 | 15% | ||||||||||||
Revenue Per Advisor excluding short-term interest rate impact TTM ($ in K) | $ | 651 | $ | 766 | 18% | ||||||||||||
Ameriprise Financial, Inc. | ||||
Reconciliation Table: Pretax Adjusted Operating Earnings Mix Shift | ||||
Quarter Ended September 30, | ||||
(in millions, unaudited) | 2021 | 2020 | ||
Advice & Wealth Management | $ | 459 | $ | 320 |
Asset Management | 285 | 198 | ||
RPS | 187 | (89) | ||
Pretax adjusted operating earnings | 931 | 429 | ||
Advice & Wealth Management | 49 | % | 75 | % |
Asset Management | 31 | % | 46 | % |
RPS | 20 | % | (21) | % |
Subtotal pretax adjusted operating earnings | 100 | % | 100 | % |
AWM & AM | 80 | % | 121 | % |
Ameriprise Financial, Inc. | ||||
Reconciliation Table: Return on Equity (ROE) Excluding Accumulated Other Comprehensive Income "AOCI" | ||||
Twelve Months Ended September 30, | ||||
(in millions, unaudited) | 2021 | 2020 | ||
Net income | $ | 2,236 | $ | 1,820 |
Less: Adjustments (1)
| (324) | 58 | ||
Adjusted operating earnings | 2,560 | 1,762 | ||
Less: Annual unlocking/loss recognition, net of tax (2)
| (6) | (349) | ||
Adjusted operating earnings excluding Unlocking | $ | 2,566 | $ | 2,111 |
Total Ameriprise Financial, Inc. shareholders' equity | $ | 5,766 | $ | 6,197 |
Less: Accumulated other comprehensive income, net of tax | 404 | 243 | ||
Total Ameriprise Financial, Inc. shareholders' equity excluding AOCI | 5,362 | 5,954 | ||
Less: Equity impacts attributable to the consolidated investment entities | 3 | - | ||
Adjusted operating equity | $ | 5,359 | $ | 5,954 |
Return on equity excluding AOCI | 41.7 | % | 30.6 | % |
Adjusted operating return on equity excluding AOCI (3)
| 47.8 | % | 29.6 | % |
Adjusted operating return on equity excluding AOCI and Unlocking | 47.9 | % | 35.5 | % |
(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 changes on unrealized gains or losses for certain investments; integration/restructuring charges; and the impact of consolidating certain investment entities. After-tax is calculated using the statutory tax rate of 21%.
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(2) After-tax is calculated using the statutory tax rate of 21%.
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(3) 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 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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Ameriprise Financial Inc. published this content on 26 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2021 20:15:15 UTC.