Ameriprise Financial, Inc. (NYSE: AMP):
Earnings Per Diluted Share | Return on Equity, ex. AOCI (1) | |||||
Q4 2020 | Q4 2020 | |||||
GAAP | $1.43 | GAAP | 26.1% | |||
Adjusted Operating | $4.53 | Adjusted Operating (2) | 36.1% |
Perspective from Jim Cracchiolo,
“Ameriprise delivered an excellent quarter and a very strong year despite a challenging environment. Across the firm, our teams are focused on serving clients’ needs and executing our key initiatives, which resulted in record growth in both client inflows and assets.
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(1) Return on equity excluding accumulated other comprehensive income (AOCI) is calculated on a trailing 12-month basis. (2) Excluding third quarter unlocking impact. |
Ameriprise Financial, Inc. Fourth Quarter Summary | ||||||||||||||||||||||
Quarter Ended December 31, | % Over/
| Year Ended
| % Over/
| |||||||||||||||||||
(in millions, except per share amounts, unaudited) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||
GAAP net income | $ | 177 | $ | 463 | (62 | %) | $ | 1,534 | $ | 1,893 | (19 | %) | ||||||||||
Adjusted operating earnings | $ | 559 | $ | 551 | 1 | % | $ | 1,770 | $ | 2,190 | (19 | %) | ||||||||||
Adjusted operating earnings, excluding unlocking and Auto & Home | $ | 559 | $ | 551 | 1 | % | $ | 2,119 | $ | 2,196 | (4 | %) | ||||||||||
GAAP net income per diluted share | $ | 1.43 | $ | 3.53 | (59 | %) | $ | 12.20 | $ | 13.92 | (12 | %) | ||||||||||
Adjusted operating earnings per diluted share | $ | 4.53 | $ | 4.20 | 8 | % | $ | 14.08 | $ | 16.10 | (13 | %) | ||||||||||
Adjusted operating earnings per diluted share, excluding unlocking and Auto & Home | $ | 4.53 | $ | 4.20 | 8 | % | $ | 16.86 | $ | 16.15 | 4 | % | ||||||||||
GAAP Return on Equity, ex. AOCI | 26.1 | % | 33.1 | % | 26.1 | % | 33.1 | % | ||||||||||||||
Adjusted Operating Return on Equity, ex. AOCI | 30.2 | % | 38.3 | % | 30.2 | % | 38.3 | % | ||||||||||||||
Adjusted Operating Return on Equity, ex. AOCI and unlocking | 36.1 | % | 38.6 | % | 36.1 | % | 38.6 | % | ||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||
Basic | 120.9 | 129.0 | 123.8 | 134.1 | ||||||||||||||||||
Diluted | 123.4 | 131.3 | 125.7 | 136.0 | ||||||||||||||||||
GAAP results were negatively impacted by market changes that affected credit spreads and the valuation of derivatives. The reduction in short term interest rates impacted adjusted operating earnings by $303 million in 2020.
Ameriprise Financial, Inc.
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(in millions, unaudited) | Quarter Ended
| % Over/
| Adjusted(1)
| |||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||
Net revenues | $ | 1,776 | $ | 1,710 | 4 | % | 10 | % | ||||||||||||||||||||||
Distribution expenses | 1,065 | 970 | (10 | %) | (10 | %) | ||||||||||||||||||||||||
G&A / other expense | 359 | 353 | (2 | %) | (2 | %) | ||||||||||||||||||||||||
Pretax adjusted operating earnings | $ | 352 | $ | 387 | (9 | %) | 19 | % | ||||||||||||||||||||||
Pretax adjusted operating margin | 19.8 | % | 22.6 | % | ||||||||||||||||||||||||||
(1) Adjusted for a $92 million impact from interest rates. See reconciliation on page 12. | ||||||||||||||||||||||||||||||
Quarter Ended
| % Over/
| |||||||||||||||||||||||||||||
(in billions, unless otherwise noted) | 2020 | 2019 | ||||||||||||||||||||||||||||
Total client assets | $ | 732 | $ | 643 | 14 | % | ||||||||||||||||||||||||
Wrap net flows | $ | 7.9 | $ | 4.4 | 82 | % | ||||||||||||||||||||||||
AWM cash balance | $ | 41.5 | $ | 32.9 | 26 | % | ||||||||||||||||||||||||
Average gross yield on cash balances (in bps) | 69 | 207 | ||||||||||||||||||||||||||||
Adjusted operating net revenue per advisor (trailing 12 months - thousands | $ | 674 | $ | 664 | 2 | % | ||||||||||||||||||||||||
Adjusted for interest rates (2) | $ | 667 | $ | 619 | 8 | % | ||||||||||||||||||||||||
(2) Adjusted for impact from interest rates. See reconciliation on page 13. |
Advice & Wealth Management pretax adjusted operating earnings were $352 million. Results were negatively impacted by $92 million from the reduction in short-term interest rates. Excluding the decline in short-term interest rates, adjusted operating earnings increased 19 percent driven by strong wrap net inflows and transactional activity, as well as continued expense management. Pretax adjusted operating margin was 19.8 percent, a 60-basis point sequential improvement.
Adjusted operating net revenues were $1.8 billion. Excluding the decline in short-term interest rates, revenues increased 10 percent reflecting strong wrap net inflows and market appreciation. On a sequential basis, revenues increased 7 percent.
Total expenses were $1.4 billion. General and administrative expense was well managed and increased 2 percent. Excluding the bank, general and administrative expenses increased 1 percent, which was in line with expectations as planned investments for future growth were largely offset by expense reengineering.
Total client assets grew 14 percent to $732 billion. The company’s ability to meet client needs efficiently and effectively is translating into excellent organic growth. Advisor productivity remains high with growth in the investment advisory business and improved transactional activity. Wrap flows in the quarter reached a record high at $7.9 billion, nearly double a year ago, and transactional activity increased 5 percent. Cash balances remain elevated at $41.5 billion with a substantial opportunity for clients to put cash back to work in the future.
Adjusted operating net revenue per advisor on a trailing 12-month basis was impacted by low interest rates and increased 2 percent to $674,000. Excluding the decline in short-term interest rates, adjusted net revenue per advisor increased 8 percent. Total advisors increased to 9,922, with strong advisor retention and experienced advisor recruiting. Experienced advisor recruiting was strong with 82 productive advisors added in the quarter.
Ameriprise Financial, Inc. Asset Management Segment Adjusted Operating Results | |||||||||||
(in millions, unaudited) | Quarter Ended
| % Over/
| |||||||||
2020 | 2019 | ||||||||||
Net revenues | $ | 798 | $ | 770 | 4 | % | |||||
Distribution expenses | 254 | 239 | (6 | %) | |||||||
G&A / other expenses | 343 | 353 | 3 | % | |||||||
Pretax adjusted operating earnings | $ | 201 | $ | 178 | 13 | % | |||||
Net pretax adjusted operating margin (1) | 39.5 | % | 36.2 | % | |||||||
(in billions) | Quarter Ended
| % Over/
| |||||||||
2020 | 2019 | ||||||||||
Total segment AUM | $ | 547 | $ | 494 | 11 | % | |||||
Net Flows | |||||||||||
Former parent company related net new flows | $ | (1.3 | ) | $ | (0.9 | ) | (44 | %) | |||
Global Institutional net flows, ex. former parent flows | 0.5 | (0.9 | ) | NM | |||||||
Global Retail net flows, ex. former parent flows | 7.7 | 5.2 | 48 | % | |||||||
Total segment net flows | $ | 7.0 | $ | 3.3 | NM | ||||||
Model delivery AUA Flows (2) | 0.2 | 0.2 | 0 | % | |||||||
(1) See reconciliation on page 14.
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Asset Management pretax adjusted operating earnings were $201 million, up 13 percent, driven by strong revenue growth and disciplined expense management. Net pretax adjusted operating margin was 39.5 percent.
Adjusted operating revenues increased 4 percent to $798 million from the cumulative impact of improved flows and higher equity markets, that was partially offset by lower performance fee revenue. Performance fee revenue in the quarter was $17 million compared to $41 million a year ago. The overall fee rate remained strong at 52 basis points as higher-fee gross sales offset lower-fee redemptions.
Adjusted operating expenses increased 1 percent. General and administrative expenses remain well managed, down 2 percent as planned investments for future growth were more than offset by expense reengineering. Expenses in the prior year period included elevated performance fee compensation.
Total assets under management increased 11 percent reflecting higher equity markets and positive net inflows. Investment performance remained strong across equity, fixed income and multi-asset strategies.
In the quarter, net inflows were $7.0 billion, which included $1.3 billion of former parent outflows. Excluding former parent outflows, net inflows were $8.3 billion, a $4.1 billion improvement year-over-year.
- Retail net inflows were $7.7 billion, benefiting from $6.2 billion of reinvested dividends. Net inflows in North America were $7.1 billion with notable flows in the broker-dealer channel and improved net inflows in EMEA of $0.6 billion driven by positive flows across all platforms in Continental Europe that more than offset outflows in the U.K.
- Global institutional net inflows were $0.5 billion, with gross sales across multiple regions and product offerings.
Ameriprise Financial, Inc. Retirement & Protection Solutions Segment Adjusted Operating Results | |||||||||
(in millions, unaudited) | Quarter Ended
| % Over/
| |||||||
2020 | 2019 (1) | ||||||||
Net revenues | $ | 799 | $ | 786 | 2 | % | |||
Expenses | 619 | 607 | (2 | %) | |||||
Pretax adjusted operating earnings | $ | 180 | $ | 179 | 1 | % | |||
Retirement & Protection Solutions pretax adjusted operating earnings increased $1 million to $180 million, from higher fees and higher ending market levels, partially offset by lower interest rates. Though the number of life insurance claims was elevated as a result of COVID-19, the financial impact was limited as a significant portion of mortality risk is reinsured.
Sales of variable annuities increased 20 percent year-over-year to $1.3 billion. Retirement sales without living benefit guarantees more than doubled from a year ago and now represent 58 percent of variable annuity sales, driven by our recently launched, lower-risk structured product as well as our RAVA 5 product without living benefit guarantees. This sales trend is expected to continue and meaningfully shift the mix of the business over time to lower-risk products that do not have living benefit guarantees. Annuity net amount at risk as a percent of account values was 0.4 percent for living benefits and 0.1 percent for death benefits, which management believes is one of the lowest among major variable annuity writers, reflecting the high quality of the book.
Sales of protection products declined 4 percent from a year ago with a product mix shift that is consistent with our focused approach. Sales of higher-margin accumulation VUL products nearly doubled and sales shifted away from indexed UL products as expected given pricing changes that reflect the low interest rate environment.
(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. |
Ameriprise Financial, Inc.
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(in millions, unaudited) | Quarter Ended
| % Over/
| |||||||||
2020 | 2019 (1) | ||||||||||
Corporate & Other | $ | (79 | ) | $ | (103 | ) | 23 | % | |||
Closed Blocks (2) | 19 | 4 | N | M | |||||||
Total pretax adjusted operating earnings (3) | $ | (60 | ) | $ | (99 | ) | 39 | % | |||
Long term care | $ | 21 | $ | (2 | ) | N | M | ||||
Fixed Annuities | (2 | ) | 6 | N | M | ||||||
Total pretax adjusted operating earnings | $ | 19 | $ | 4 | N | M | |||||
(1) Fixed Annuities moved to the Corporate & Other segment in Q3 2020 as a closed block. Prior periods have been restated.
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Corporate & Other pretax adjusted operating loss was $79 million, a $24 million improvement due to elevated affordable housing impairments in the prior year period. Results in the quarter also included $19 million related to higher accruals related to strong performance and share price appreciation on compensation expense.
Long term care pretax adjusted operating earnings was $21 million due to lower new claims and a 20 percent increase in terminations, primarily related to COVID-19.
Fixed annuities pretax adjusted operating loss was $2 million from continued low interest rates.
Taxes
The operating effective tax rate was 16.9 percent for the fourth quarter and the full year.
About Ameriprise Financial
At Ameriprise Financial, we have been helping people feel confident about their financial future for more than 125 years. With extensive advisory, asset management and insurance capabilities and a nationwide network of approximately 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 is an SEC- and FCA-registered investment adviser affiliate 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 all 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.
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;
- statements about the expected trend in the shift of the retirement product sales business to lower risk products without living benefit guarantees over time;
- other statements about future economic performance, the performance of equity markets and interest rate variations and the economic performance of the United States and of global markets; and
- statements of assumptions underlying such statements.
The words “believe,” “expect,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “forecast,” “on track,” “project,” ”continue,” “able to remain”, “resume,” “deliver,” “develop,” “evolve,” “drive,” ”enable,” “flexibility,” “scenario, “case,” “appear” 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, 2019, Part 1, Item 1A of and elsewhere in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 and subsequent Quarterly Reports on Form 10-Q or Annual Reports on Form 10-K, 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 and the below-referenced Statistical Supplement are based upon asset valuations that represent estimates as of the date of this news release and may be revised in the company’s Form 10-K for the year ended December 31, 2020. For information about Ameriprise Financial entities, please refer to the Fourth Quarter 2020 Statistical Supplement available at ir.ameriprise.com and the tables that follow in this news release.
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.
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Quarter Ended
| Per Diluted Share
| % Over/
| |||||||||||||||||
(in millions, except per share amounts, unaudited) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
Net income | $ | 177 | $ | 463 | $ | 1.43 | $ | 3.53 | (59 | %) | |||||||||
Add: Net realized investment (gains) losses (1) | (8 | ) | 2 | (0.06 | ) | 0.02 | |||||||||||||
Add: Market impact on non-traditional long-duration products (1) | 614 | 358 | 4.98 | 2.73 | |||||||||||||||
Add: Mean reversion-related impacts (1) | (117 | ) | (39 | ) | (0.95 | ) | (0.30 | ) | |||||||||||
Add: Market impact of hedges on investments (1) | — | (2 | ) | — | (0.02 | ) | |||||||||||||
Add: Gain on disposal of business | — | (213 | ) | — | (1.62 | ) | |||||||||||||
Add: Integration/restructuring charges (1) | — | 6 | — | 0.05 | |||||||||||||||
Less: Net income (loss) attributable to consolidated investment entities | 5 | 1 | 0.04 | 0.01 | |||||||||||||||
Add: Tax effect of adjustments (2) | (102 | ) | (23 | ) | (0.83 | ) | (0.18 | ) | |||||||||||
Adjusted operating earnings | $ | 559 | $ | 551 | $ | 4.53 | $ | 4.20 | 8 | % | |||||||||
Weighted average common shares outstanding: | |||||||||||||||||||
Basic | 120.9 | 129.0 | |||||||||||||||||
Diluted | 123.4 | 131.3 | |||||||||||||||||
(1) Pretax adjusted operating adjustment. (2) Calculated using the statutory tax rate of 21%. |
Ameriprise Financial, Inc. Reconciliation Table: Earnings | |||||||||||||||||||
Year-to-date
| Per Diluted Share
| % Over/
| |||||||||||||||||
(in millions, except per share amounts, unaudited) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
Net income | $ | 1,534 | $ | 1,893 | $ | 12.20 | $ | 13.92 | (12 | %) | |||||||||
Add: Net realized investment (gains) losses (1) | 10 | 4 | 0.08 | 0.03 | |||||||||||||||
Add: Market impact on non-traditional long-duration products (1) | 375 | 591 | 2.98 | 4.34 | |||||||||||||||
Add: Mean reversion-related impacts (1) | (87 | ) | (57 | ) | (0.69 | ) | (0.42 | ) | |||||||||||
Add: Market impact of hedges on investments (1) | — | 35 | — | 0.26 | |||||||||||||||
Add: Gain on disposal of business | — | (213 | ) | — | (1.57 | ) | |||||||||||||
Add: Integration/restructuring charges (1) | 4 | 17 | 0.03 | 0.13 | |||||||||||||||
Less: Net income (loss) attributable to consolidated investment entities | 3 | 1 | 0.02 | 0.01 | |||||||||||||||
Add: Tax effect of adjustments (2) | (63 | ) | (79 | ) | (0.50 | ) | (0.58 | ) | |||||||||||
Adjusted operating earnings | $ | 1,770 | $ | 2,190 | $ | 14.08 | $ | 16.10 | (13 | %) | |||||||||
Less: Pretax impact of annual unlocking/loss recognition | (442 | ) | (20 | ) | (3.52 | ) | (0.15 | ) | |||||||||||
Less: Tax effect of annual unlocking/loss recognition | 93 | 4 | 0.74 | 0.03 | |||||||||||||||
Adjusted operating earnings excluding Unlocking | $ | 2,119 | $ | 2,206 | $ | 16.86 | $ | 16.22 | 4 | % | |||||||||
Less: Pretax impact of Auto & Home core results | — | 13 | — | 0.09 | |||||||||||||||
Less: Tax effect of Auto & Home core results | — | (3 | ) | — | (0.02 | ) | |||||||||||||
Adjusted operating earnings excluding Unlocking and Auto & Home | $ | 2,119 | $ | 2,196 | $ | 16.86 | $ | 16.15 | 4 | % | |||||||||
Less: Pretax impact of short-term interest rates | 68 | 452 | |||||||||||||||||
Less: Tax effect of short-term interest rates | (14 | ) | (95 | ) | |||||||||||||||
Adjusted operating earnings excluding Interest Rate Impact, Unlocking, and Auto & Home | $ | 2,065 | $ | 1,839 | |||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||
Basic | 123. | 8 | 134. | 1 | |||||||||||||||
Diluted | 125. | 7 | 136. | 0 | |||||||||||||||
(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
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(in millions, unaudited) | 2020 | 2019 | |||||
Total net revenues | $ | 3,183 | $ | 3,287 | |||
Less: Net realized investment gains (losses) | 8 | (2 | ) | ||||
Less: Market impact on non-traditional long-duration products | 20 | 8 | |||||
Less: Mean Reversion related impacts | — | — | |||||
Less: Market impact of hedges on investments | — | 2 | |||||
Less: Gain on Disposal of Business | — | 213 | |||||
Less: Integration/restructuring charges | — | — | |||||
Less: CIEs revenue | 19 | 21 | |||||
Adjusted operating total net revenues | 3,136 | 3,045 | |||||
Less: Interest Rate Impacts | — | 92 | |||||
Adjusted operating total net revenues excluding Interest Rate Impacts | $ | 3,136 | $ | 2,953 | |||
Total expenses | $ | 2,993 | $ | 2,753 | |||
Less: CIEs expenses | 13 | 20 | |||||
Less: Integration/restructuring charges | — | 6 | |||||
Less: Market impact on non-traditional long-duration products | 634 | 366 | |||||
Less: Mean reversion-related impacts | (117 | ) | (39 | ) | |||
Less: DAC/DSIC offset to net realized investment gains (losses) | — | — | |||||
Adjusted operating expenses | $ | 2,463 | $ | 2,400 | |||
Pretax income | $ | 190 | $ | 534 | |||
Pretax adjusted operating earnings | $ | 673 | $ | 645 | |||
Pretax income margin | 6.0 | % | 16.2 | % | |||
Pretax adjusted operating margin | 21.5 | % | 21.2 | % | |||
Ameriprise Financial, Inc.
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(in millions, unaudited) | Quarter Ended
| % Over/
| |||||||||||
2020 | 2019 | ||||||||||||
Ameriprise Financial, Inc. Net revenues | $ | 3,136 | $ | 3,045 | 3 | % | |||||||
Less: Short-Term interest rate impact | — | 92 | |||||||||||
Ameriprise Financial, Inc. Net revenues excluding Short-Term interest rate impact | $ | 3,136 | $ | 2,953 | 6 | % | |||||||
Ameriprise Financial, Inc. Pretax operating earnings | $ | 673 | $ | 645 | 4 | % | |||||||
Less: Short-Term interest rate impact | — | 92 | |||||||||||
Ameriprise Financial, Inc. Pretax operating earnings excluding Short-Term interest rate impact | $ | 673 | $ | 553 | 22 | % | |||||||
AWM Net revenues | $ | 1,776 | $ | 1,710 | 4 | % | |||||||
Less: Short-Term interest rate impact | — | 92 | |||||||||||
AWM Net revenues excluding Short-Term interest rate impact | $ | 1,776 | $ | 1,618 | 10 | % | |||||||
AWM Pretax operating earnings | $ | 352 | $ | 387 | (9 | %) | |||||||
Less: Short-Term interest rate impact | — | 92 | |||||||||||
AWM Pretax operating earnings excluding Short-Term interest rate impact | $ | 352 | $ | 295 | 19 | % | |||||||
Ameriprise Financial, Inc.
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Quarter Ended
| % Over/
| |||||||||
(in millions, unaudited) | 2020 | 2019 | ||||||||
General and administrative expense | $ | 828 | $ | 839 | 1 | % | ||||
Less: CIEs expenses | 1 | — | ||||||||
Less: Integration/restructuring charges | — | 6 | ||||||||
Adjusted operating general and administrative expense | $ | 827 | $ | 833 | 1 | % | ||||
Ameriprise Financial, Inc.
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Quarter Ended
| ||||||||
(in millions, unaudited) | GAAP | Adjusted
| ||||||
Pretax income | $ | 534 | $ | 645 | ||||
Income tax provision | $ | 71 | $ | 94 | ||||
Effective tax rate | 13.2 | % | 14.6 | % | ||||
Ameriprise Financial, Inc.
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Quarter Ended December 31, 2020 | ||||||||
(in millions, unaudited) | GAAP | Adjusted Operating | ||||||
Pretax income | $ | 190 | $ | 673 | ||||
Income tax provision | $ | 13 | $ | 114 | ||||
Effective tax rate | 6.5 | % | 16.9 | % | ||||
Ameriprise Financial, Inc.
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(in millions, unaudited) | 1Q
| 2Q
| 3Q
| 4Q
| 1Q
| 2Q
| 3Q
| 4Q
| % Over/
| ||||||||||||||||||||||||||
Total Net Revenue | $ | 1,554 | $ | 1,653 | $ | 1,682 | $ | 1,710 | $ | 1,695 | $ | 1,537 | $ | 1,667 | $ | 1,776 | |||||||||||||||||||
Interest Revenue | $ | (122 | ) | $ | (122 | ) | $ | (116 | ) | $ | (92 | ) | $ | (68 | ) | $ | — | $ | — | $ | — | ||||||||||||||
Advisor Count | 9,979 | 9,951 | 9,930 | 9,871 | 9,878 | 9,894 | 9,905 | 9,922 | |||||||||||||||||||||||||||
Revenue Per Advisor | $ | 156 | $ | 166 | $ | 169 | $ | 173 | $ | 172 | $ | 155 | $ | 168 | $ | 179 | 3 | % | |||||||||||||||||
Revenue Per Advisor excluding short-term interest rate impact | $ | 144 | $ | 154 | $ | 158 | $ | 164 | $ | 165 | $ | 155 | $ | 168 | $ | 179 | 9 | % | |||||||||||||||||
Revenue Per Advisor TTM | $ | 664 | $ | 674 | 2 | % | |||||||||||||||||||||||||||||
Revenue Per Advisor excluding short-term interest rate impact TTM | $ | 619 | $ | 667 | 8 | % | |||||||||||||||||||||||||||||
Ameriprise Financial, Inc.
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(in millions, unaudited) | Quarter Ended
| % Over/
| |||||||
2020 | 2019 | ||||||||
AWM general and administrative expenses | $ | 357 | $ | 350 | (2 | %) | |||
Less: Bank general and administrative expenses | 12 | 10 | |||||||
Adjusted AWM general and administrative expenses | $ | 345 | $ | 340 | (1 | %) | |||
Ameriprise Financial, Inc.
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Quarter Ended December 31, | ||||||||
(in millions, unaudited) | 2020 | 2019 | ||||||
Adjusted operating total net revenues | $ | 798 | $ | 770 | ||||
Less: Distribution pass through revenues | 205 | 193 | ||||||
Less: Subadvisory and other pass through revenues | 94 | 85 | ||||||
Net adjusted operating revenues | $ | 499 | $ | 492 | ||||
Pretax adjusted operating earnings | $ | 201 | $ | 178 | ||||
Less: Adjusted operating net investment income | 8 | 4 | ||||||
Add: Amortization of intangibles | 4 | 4 | ||||||
Net adjusted operating earnings | $ | 197 | $ | 178 | ||||
Pretax adjusted operating margin | 25.2 | % | 23.1 | % | ||||
Net pretax adjusted operating margin | 39.5 | % | 36.2 | % | ||||
Ameriprise Financial, Inc.
| |||||||
Twelve Months Ended
| |||||||
(in millions, unaudited) | 2020 | 2019 | |||||
Net income | $ | 1,534 | $ | 1,893 | |||
Less: Adjustments (1) | (236 | ) | (297 | ) | |||
Adjusted operating earnings | 1,770 | 2,190 | |||||
Less: Annual unlocking/loss recognition, net of tax (2) | (349 | ) | (16 | ) | |||
Adjusted operating earnings excluding Unlocking | $ | 2,119 | $ | 2,206 | |||
Less: Auto & Home, net of tax(2) | — | 10 | |||||
Adjusted operating earnings excluding Unlocking and Auto & Home | $ | 2,119 | $ | 2,196 | |||
Total Ameriprise Financial, Inc. shareholders’ equity | $ | 6,171 | $ | 5,837 | |||
Less: Accumulated other comprehensive income, net of tax | 301 | 122 | |||||
Total Ameriprise Financial, Inc. shareholders’ equity excluding AOCI | 5,870 | 5,715 | |||||
Less: Equity impacts attributable to the consolidated investment entities | 1 | 1 | |||||
Adjusted operating equity | $ | 5,869 | $ | 5,714 | |||
Return on equity excluding AOCI | 26.1 | % | 33.1 | % | |||
Adjusted operating return on equity excluding AOCI (3) | 30.2 | % | 38.3 | % | |||
Adjusted operating return on equity excluding AOCI and Unlocking | 36.1 | % | 38.6 | % | |||
Adjusted operating return on equity excluding AOCI, Unlocking and Auto & Home | 36.1 | % | 38.4 | % | |||
(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; 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%.
|
Ameriprise Financial, Inc.
| |||||||||||
(in millions, unaudited) | Quarter Ended
| % Over/
| |||||||||
2020 | 2019 | ||||||||||
Revenues | |||||||||||
Management and financial advice fees | $ | 2,003 | $ | 1,862 | 8 | % | |||||
Distribution fees | 422 | 469 | (10 | %) | |||||||
Net investment income | 318 | 342 | (7 | %) | |||||||
Premiums, policy and contract charges | 375 | 359 | 4 | % | |||||||
Other revenues | 71 | 72 | (1 | %) | |||||||
Gain on Disposal of Business | — | 213 | N | M | |||||||
Total revenues | 3,189 | 3,317 | (4 | %) | |||||||
Banking and deposit interest expense | 6 | 30 | (80 | %) | |||||||
Total net revenues | 3,183 | 3,287 | (3 | %) | |||||||
Expenses | |||||||||||
Distribution expenses | 1,096 | 991 | (11 | %) | |||||||
Interest credited to fixed accounts | 121 | 152 | 20 | % | |||||||
Benefits, claims, losses and settlement expenses | 982 | 728 | (35 | %) | |||||||
Amortization of deferred acquisition costs | (72 | ) | (7 | ) | N | M | |||||
Interest and debt expense | 38 | 50 | 24 | % | |||||||
General and administrative expense | 828 | 839 | 1 | % | |||||||
Total expenses | 2,993 | 2,753 | (9 | %) | |||||||
Pretax income | 190 | 534 | (64 | %) | |||||||
Income tax provision | 13 | 71 | 82 | % | |||||||
Net income | $ | 177 | $ | 463 | (62 | %) | |||||
NM Not Meaningful — variance equal to or greater than 100% |
Ameriprise Financial, Inc.
| |||||||||
(in millions, unaudited) | Year Ended
| % Over/
| |||||||
2020 | 2019 | ||||||||
Revenues | |||||||||
Management and financial advice fees | $ | 7,368 | $ | 7,015 | 5 | % | |||
Distribution fees | 1,661 | 1,919 | (13 | %) | |||||
Net investment income | 1,251 | 1,463 | (14 | %) | |||||
Premiums, policy and contract charges | 1,395 | 2,224 | (37 | %) | |||||
Other revenues | 283 | 269 | 5 | % | |||||
Gain on Disposal of Business | — | 213 | N | M | |||||
Total revenues | 11,958 | 13,103 | (9 | %) | |||||
Banking and deposit interest expense | 59 | 136 | (57 | %) | |||||
Total net revenues | 11,899 | 12,967 | (8 | %) | |||||
Expenses | |||||||||
Distribution expenses | 4,059 | 3,810 | (7 | %) | |||||
Interest credited to fixed accounts | 644 | 669 | 4 | % | |||||
Benefits, claims, losses and settlement expenses | 1,806 | 2,576 | 30 | % | |||||
Amortization of deferred acquisition costs | 277 | 179 | (55 | %) | |||||
Interest and debt expense | 162 | 214 | 24 | % | |||||
General and administrative expense | 3,120 | 3,287 | 5 | % | |||||
Total expenses | 10,068 | 10,735 | (6 | %) | |||||
Pretax income | 1,831 | 2,232 | (18 | %) | |||||
Income tax provision | 297 | 339 | 12 | % | |||||
Net income | $ | 1,534 | $ | 1,893 | (19 | %) | |||
NM Not Meaningful — variance equal to or greater than 100% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210127005887/en/
Contacts:
Alicia A. Charity
Ameriprise Financial
(612) 671-2080
alicia.a.charity@ampf.com