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Ameriprise Financial Reports Fourth Quarter 2022 Results

Business Wire 25-Jan-2023 4:08 PM

Ameriprise Financial, Inc. (NYSE:AMP):

Earnings Per Diluted Share

 

Return on Equity, ex AOCI (1)

 

Q4 2022

FY 2022

 

 

2022

GAAP

$4.43

$22.51

 

GAAP

43.1%

Adjusted Operating

$6.94

$23.96

 

Adjusted Operating

45.9%

Adjusted Operating, Ex. Unlocking (2)

$6.94

$25.14

 

Adjusted Operating, Ex. Unlocking (2)

48.1%

  • Fourth quarter adjusted operating earnings per diluted share was $6.94, up 13 percent from the prior year period driven by strong business performance and capital return to shareholders. Full year adjusted operating earnings per diluted share excluding unlocking increased 11 percent to $25.14.

 

Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer

 

"Ameriprise delivered excellent results in the quarter with operating EPS up 13 percent, capping off a strong year, with full year operating EPS(4) up 11 percent, reaching a new high of $25.14.

 

"We achieved record results in 2022 that demonstrate the strength, diversification and capabilities of our business. Wealth Management client flows for the year hit a new high reflecting our proven, advice-based client experience and broad suite of solutions. In addition, we are seeing strong growth across our cash offerings including at the bank – a significant benefit in this rising interest rate environment.

 

"Our Retirement and Protection Solutions business also benefited from increased spread revenue and had a good quarter. And while our Asset Management business was impacted by the industry-wide pressure from lower markets and volatility, we remained focused on executing our strategic priorities, including the integration of the BMO EMEA business.

 

"Capital management is a differentiator for Ameriprise. As we grow, we consistently generate significant free cash flow across our business that we reinvest in the business and return to shareholders. In 2022, we returned approximately 85 percent of earnings to shareholders, including devoting $1.9 billion to share repurchases and a double digit increase in our dividend.

 

"Ameriprise is well-positioned to build on our momentum in 2023."

 

 

  • Fourth quarter GAAP net income per diluted share was $4.43 compared to $5.96 a year ago, primarily reflecting market impacts on the valuation of derivatives. Full year GAAP net income per diluted share decreased 2 percent to $22.51.

 

  • Pretax adjusted operating earnings reached a new high of $973 million, up 9 percent, from excellent growth in the Wealth Management business. The Advice and Wealth Management margin reached a new record high of 30 percent.

 

  • Adjusted operating net revenues of $3.6 billion declined only 2 percent in the quarter, as excellent growth in Wealth Management largely offset a reduction in Asset Management fees from market depreciation.

 

  • Advice & Wealth Management total client flows were $12.4 billion in the quarter, reaching a record high of $42.5 billion for the year, and Ameriprise Bank and Certificate Company assets grew to $29 billion.

 

  • Investment performance at Columbia Threadneedle Investments remained strong in a volatile market environment with 131 funds with 4- and 5-star Morningstar ratings.

 

  • The company returned $610 million of capital to shareholders in the quarter and $2.4 billion for the full year driven by strong balance sheet fundamentals and significant free cash flow generation.

 

  • For the fourth consecutive year, Ameriprise was recognized by J.D. Power for providing "an outstanding customer service experience" for phone support for advisors.(3)

 

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

(2) Unlocking impacts reflect the company's annual review of insurance and annuity valuation assumptions and model changes, and the Long Term Care (LTC) gross premium valuation.

(3) J.D. Power 2022 Certified Customer Service ProgramSM recognition is based on successful completion of an evaluation and exceeding a customer satisfaction benchmark through a survey of recent servicing interactions. For more information, visit http://www.jdpower.com/ccc.

(4) Excluding unlocking.

Ameriprise Financial, Inc.

Fourth Quarter Summary

 

Quarter Ended December 31,

% Over/

(Under)

 

Year-to-date December 31,

% Over/

(Under)

(in millions, except per share amounts, unaudited)

2022

2021

 

2022

2021

GAAP net income

$

494

 

$

701

 

(30)%

 

$

2,559

 

$

2,760

 

(7)%

Adjusted operating earnings

$

773

 

$

723

 

7%

 

$

2,724

 

$

2,724

 

-

Adjusted operating earnings excluding unlocking (see reconciliation starting on p. 26)

$

773

 

$

723

 

7%

 

$

2,858

 

$

2,730

 

5%

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income per diluted share

$

4.43

 

$

5.96

 

(26)%

 

$

22.51

 

$

23.00

 

(2)%

Adjusted operating earnings per diluted share

$

6.94

 

$

6.15

 

13%

 

$

23.96

 

$

22.70

 

6%

Adjusted operating earnings per diluted share excluding unlocking (see reconciliation starting on p. 26)

$

6.94

 

$

6.15

 

13%

 

$

25.14

 

$

22.75

 

11%

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Return on Equity, ex. AOCI

 

43.1

%

 

51.2

%

 

 

 

43.1

%

 

51.2

%

 

Adjusted Operating Return on Equity, ex. AOCI

 

45.9

%

 

50.6

%

 

 

 

45.9

%

 

50.6

%

 

Adjusted Operating Return on Equity, ex. AOCI and unlocking

 

48.1

%

 

50.7

%

 

 

 

48.1

%

 

50.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

108.9

 

 

114.6

 

 

 

 

111.3

 

 

117.3

 

 

Diluted

 

111.4

 

 

117.6

 

 

 

 

113.7

 

 

120.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current quarter GAAP results after tax were impacted by the valuation of derivatives and included $12 million of integration costs from the acquisition of BMO EMEA. GAAP results in the prior year quarter were modestly impacted by the market changes that negatively affected credit spreads and the valuation of derivatives.

Ameriprise Financial, Inc.

Advice & Wealth Management Segment Adjusted Operating Results

 

Quarter Ended December 31,

% Over/

(Under)

(in millions, unaudited)

2022

2021

 

Adjusted operating net revenues

$

2,226

 

$

2,114

 

5%

 

 

 

 

 

 

Distribution expenses

 

1,153

 

 

1,275

 

10%

G&A / other expense

 

408

 

 

367

 

(11)%

Adjusted operating expenses

 

1,561

 

 

1,642

 

5%

Pretax adjusted operating earnings

$

665

 

$

472

 

41%

 

 

 

 

 

 

Pretax adjusted operating margin

 

29.9

%

 

22.3

%

760 bps

 

 

 

 

 

 

 

 

Quarter Ended December 31,

% Over/

(Under)

(in billions, unless otherwise noted)

2022

 

2021

Total client assets

$

758

 

$

858

(12)%

Total client net flows (1)

$

12.4

 

$

12.5

(1)%

Wrap net flows (1)

$

6.2

 

$

10.5

(41)%

AWM cash balances

$

47.2

 

$

43.8

8%

Average gross yield on cash balances (in bps)

 

373

 

 

62

311 bps

Adjusted operating net revenue per advisor (TTM in thousands)

$

827

 

$

796

4%

 

 

 

 

 

(1) See definition on page 12.

Advice & Wealth Management pretax adjusted operating earnings increased 41 percent to $665 million, and the pretax adjusted operating margin reached a new record of 30 percent. This strong performance was a result of continued significant organic growth with flows into advisory and brokerage accounts. The strategy to expand Ameriprise Bank and Certificate Company drove 59 percent asset growth for these businesses. The advisor base continues to build with excellent advisor retention, strong recruiting and increased productivity.

Net revenues increased 5 percent as client inflows, higher investment income from bank growth and rising interest rates more than offset lower fees related to market depreciation and lower client activity, consistent with industry trends.

Adjusted operating expenses declined 5 percent to $1.6 billion compared to a year ago. Distribution expenses declined 10 percent primarily from lower markets. G&A and other expenses were $408 million, reflecting investments for business growth, including the bank, as well as higher volume-related activity from client inflows. Prior year G&A expenses included unusually low staffing levels and limited travel and entertainment expense. The company continues to manage expenses prudently.

Wealth Management delivered robust organic growth. Clients and advisors remained engaged and focused on positioning portfolios to meet financial planning goals in the face of a challenging market environment.

  • Total client net flows were strong at $12.4 billion, evenly split between flows into advisory and non-advisory accounts, a mix shift that was consistent with the current market environment. For the full year, total client flows hit a new high of $42.5 billion.
  • Total AWM cash balances increased 8 percent to $47.2 billion and 2 percent on a sequential basis. These cash balances provide important flexibility to drive sustainable financial benefits.
  • Adjusted operating net revenue per advisor on a trailing 12-month basis was up 4 percent to $827,000, reflecting the impact of the market environment.
  • Total advisors increased 2 percent to 10,269 with excellent advisor retention and the addition of 72 experienced advisors in the quarter.

Ameriprise Financial, Inc.

Asset Management Segment Adjusted Operating Results

 

Quarter Ended December 31,

% Over/

(Under)

(in millions, unaudited)

2022

2021

Adjusted operating net revenues

$

785

 

 

$

1,060

 

 

(26)%

 

 

 

 

 

 

Distribution expenses

 

228

 

 

 

294

 

 

22%

G&A / other expenses

 

411

 

 

 

436

 

 

6%

Adjusted operating expenses

 

639

 

 

 

730

 

 

12%

Pretax adjusted operating earnings

$

146

 

 

$

330

 

 

(56)%

 

 

 

 

 

 

Net pretax adjusted operating margin (1)

 

28.6

 

%

 

45.7

 

%

(1,710) bps

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended December 31,

% Over/

(Under)

(in billions)

2022

2021

Total segment AUM

$

584

 

 

$

754

 

 

(23)%

 

 

 

 

 

 

Net Flows

 

 

 

 

 

Global Retail net flows

$

(3.7

)

 

$

13.8

 

 

NM

Global Institutional net flows, ex. legacy insurance partners flows

 

5.0

 

 

 

14.6

 

 

(78)%

Legacy insurance partners flows

 

(1.7

)

 

 

(0.9

)

 

(81)%

Total segment net flows

$

(0.4

)

 

$

27.5

 

 

NM

 

 

 

 

 

 

Model delivery AUA Flows (2)

$

1.1

 

 

$

0.8

 

 

40%

 

 

 

 

 

 

(1) See reconciliation on page 14.

(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 results in the quarter were impacted, like the industry, by the challenging market environment and $12 million of negative mark-to-market impacts.

Pretax adjusted operating earnings and adjusted operating net revenues declined to $146 million and $785 million, respectively, primarily from lower fee revenue resulting from market depreciation and net outflows, as well as mark-to-market impacts in the quarter and timing of performance fees. Earnings from performance fees were $30 million higher in the prior year. Net pretax adjusted operating margin was 29 percent in the quarter.

Adjusted operating expenses decreased 12 percent. G&A and other expenses continue to be well managed, down 6 percent. Distribution expenses decreased 22 percent primarily from market depreciation and lower sales.

Total AUM decreased 23 percent to $584 billion primarily from market depreciation. Investment performance remained strong in a volatile environment with 131 funds with 4- and 5-star Morningstar ratings.

In the quarter, net outflows were $0.4 billion and included $1.7 billion of outflows related to legacy insurance partners. Institutional inflows continued to offset elevated retail outflows.

  • Retail net outflows were $3.7 billion, which included reinvested dividends. In North America, there were outflows in equity and fixed income strategies, similar to industry trends. In EMEA, outflows persisted as investor sentiment remained weak from higher interest rates and geopolitical strain.
  • Global institutional net inflows were $5.0 billion primarily from liability-driven investing mandates.

Ameriprise Financial, Inc.

Retirement & Protection Solutions Segment Adjusted Operating Results

 

Quarter Ended December 31,

% Over/

(Under)

(in millions, unaudited)

2022

 

2021

Adjusted operating net revenues

$

816

 

 

$

815

 

-

Adjusted operating expenses

 

587

 

 

 

632

 

7%

Pretax adjusted operating earnings

$

229

 

$

183

25%

 

 

 

 

 

Retirement & Protection Solutions continues to generate strong free cash flow with a differentiated risk profile. We took strategic actions in the quarter to reposition the investment portfolio to extend duration to capture benefits from higher interest rates, a portion of which was recognized in the quarter.

Pretax adjusted operating earnings were $229 million, up 25 percent from last year, primarily due to higher investment income, lower amortization of deferred acquisition cost and lower sales levels.

Retirement & Protection Solutions sales continued to reflect muted overall industry sales levels as well as management actions to optimize our business mix. Protection sales decreased 30 percent to $68 million, primarily related to the market environment. The majority of sales remain in higher-margin accumulation VUL products. Variable annuity sales decreased 39 percent to $0.9 billion, reflecting the discontinuation of sales with living benefit riders that was completed in June, as well as the industry slowdown due to market dislocation.

Ameriprise Financial, Inc.

Corporate & Other Segment Adjusted Operating Results

 

Quarter Ended December 31,

% Over/

(Under)

(in millions, unaudited)

2022

 

2021

Corporate & Other, excluding Closed Blocks

$

(81

)

 

$

(88

)

8%

Closed Blocks (1)

 

14

 

 

 

(3

)

NM

Pretax adjusted operating earnings

$

(67

)

 

$

(91

)

26%

 

 

 

 

 

Long Term Care

$

18

 

 

$

4

 

NM

Fixed Annuities

 

(4

)

 

 

(7

)

43%

Closed Blocks pretax adjusted operating earnings

$

14

 

 

$

(3

)

NM

 

 

 

 

 

(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 $67 million, a $24 million improvement from the prior year.

Corporate & Other, excluding Closed Blocks, pretax adjusted operating loss was $81 million, a $7 million improvement from the prior year, which included a $15 million unfavorable impact from share price appreciation on compensation-related expense.

Long Term Care pretax adjusted operating earnings were $18 million, reflecting the repositioning of the investment portfolio, impacts from premium rate increases and benefit reductions, and improved underlying claims experience, as well as a benefit from a claims processing catch-up by our third-party vendor.

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

Taxes

The operating effective tax rate increased to 20.6 percent for the fourth quarter and 19.7 percent for the full year.

About Ameriprise Financial

At Ameriprise Financial, we have been helping people feel confident about their financial future for more than 125 years. With extensive investment advice, asset management and insurance capabilities and a nationwide network of more than 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, net pretax adjusted operating margin, consolidated tax rate, return of capital to shareholders, and excess capital position and financial flexibility to capture additional growth opportunities;
  • other statements about future economic performance, the performance of equity markets and interest rate variations and the economic performance of the United States and of global markets; and
  • statements of assumptions underlying such statements.

The words "believe," "expect," "anticipate," "optimistic," "intend," "plan," "aim," "will," "may," "should," "could," "would," "likely," "forecast," "on track," "project," "continue," "able to remain", "resume," "deliver," "develop," "evolve," "drive," "enable," "flexibility," "commitment," "scenario," "case," "appear," "expands" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from such statements.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Management cautions readers to carefully consider the risks described in the "Risk Factors" discussion under Part 1, Item 1A of and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 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-K for the period ended December 31, 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.

J.D. Power 2022 Certified Customer Service ProgramSM recognition is based on successful completion of an evaluation and exceeding a customer satisfaction benchmark through a survey of recent servicing interactions. Ameriprise advisors evaluated the firm's performance in these factors: satisfaction with the IVR routing process, and the customer service representative which includes knowledge, courtesy, concern, call duration/transfers/hold time, and timeliness of resolution in addition to overall satisfaction. Ameriprise paid a fee to J.D. Power to be independently evaluated through this program and cite the results. Ameriprise's use of results of the evaluation is subject to a license fee. For more information, visit https://www.jdpower.com/ccc.

Ameriprise Financial, Inc.

Consolidated GAAP Results

(in millions, except per share amounts, unaudited)

4 Qtr 2022

 

4 Qtr 2021

% Over/

(Under)

3 Qtr 2022

% Over/

(Under)

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

2,125

 

 

$

2,555

 

(17)%

$

2,172

 

(2)%

Distribution fees

 

528

 

 

 

462

 

14%

 

506

 

4%

Net investment income

 

577

 

 

 

255

 

NM

 

349

 

65%

Premiums, policy and contract charges

 

317

 

 

 

367

 

(14)%

 

361

 

(12)%

Other revenues

 

126

 

 

 

123

 

2%

 

118

 

7%

Total revenues

 

3,673

 

 

 

3,762

 

(2)%

 

3,506

 

5%

Banking and deposit interest expense

 

56

 

 

 

2

 

NM

 

15

 

NM

Total net revenues

 

3,617

 

 

 

3,760

 

(4)%

 

3,491

 

4%

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

1,195

 

 

 

1,322

 

10%

 

1,195

 

-

Interest credited to fixed accounts

 

222

 

 

 

145

 

(53)%

 

157

 

(41)%

Benefits, claims, losses and settlement expenses

 

709

 

 

 

378

 

(88)%

 

370

 

(92)%

Amortization of deferred acquisition costs

 

(147

)

 

 

47

 

NM

 

107

 

NM

Interest and debt expense

 

62

 

 

 

42

 

(48)%

 

52

 

(19)%

General and administrative expense

 

957

 

 

 

960

 

-

 

925

 

(3)%

Total expenses

 

2,998

 

 

 

2,894

 

(4)%

 

2,806

 

(7)%

Pretax income

 

619

 

 

 

866

 

(29)%

 

685

 

(10)%

Income tax provision

 

125

 

 

 

165

 

24%

 

137

 

9%

Net income

$

494

 

 

$

701

 

(30)%

$

548

 

(10)%

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

Basic earnings per share

$

4.54

 

 

$

6.12

 

 

$

4.96

 

 

Earnings per diluted share

$

4.43

 

 

$

5.96

 

 

$

4.86

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

Basic

 

108.9

 

 

 

114.6

 

 

 

110.5

 

 

Diluted

 

111.4

 

 

 

117.6

 

 

112.7

 

 

 

 

 

 

 

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

Ameriprise Financial, Inc.

Consolidated Highlights and Capital Summary

(in millions unless otherwise noted, unaudited)

4 Qtr 2022

 

4 Qtr 2021

% Over/

(Under)

3 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

Assets Under Management and Administration

Advice & Wealth Management AUM

$

409,027

 

 

$

460,935

 

(11)%

$

382,364

 

7%

Asset Management AUM

 

584,029

 

 

 

754,056

 

(23)%

 

546,493

 

7%

Corporate AUM

 

212

 

 

 

136

 

56%

 

170

 

25%

Eliminations

 

(36,945

)

 

 

(44,160

)

16%

 

(35,494

)

(4)%

Total Assets Under Management

 

956,323

 

 

 

1,170,967

 

(18)%

 

893,533

 

7%

Total Assets Under Administration

 

222,011

 

 

 

246,891

 

(10)%

 

207,965

 

7%

Total AUM and AUA

$

1,178,334

 

 

$

1,417,858

 

(17)%

$

1,101,498

 

7%

 

 

 

 

 

 

 

S&P 500

 

 

 

 

 

 

Daily average

 

3,850

 

 

 

4,600

 

(16)%

 

3,983

 

(3)%

Period end

 

3,840

 

 

 

4,766

 

(19)%

 

3,586

 

7%

 

 

 

 

 

 

 

Weighted Equity Index (WEI) (1)

 

 

 

 

 

 

Daily average

 

2,536

 

 

 

3,068

 

(17)%

 

2,606

 

(3)%

Period end

 

2,549

 

 

 

3,152

 

(19)%

 

2,347

 

9%

 

 

 

 

 

 

 

Common shares

 

 

 

 

 

 

Beginning balance

 

106.7

 

 

 

112.4

 

(5)%

 

108.4

 

(2)%

Repurchases

 

(1.6

)

 

 

(1.6

)

-

 

(1.8

)

11%

Issuances

 

0.3

 

 

 

0.4

 

(25)%

 

0.1

 

NM

Other

 

(0.1

)

 

 

(0.3

)

67%

 

 

-

Total common shares outstanding

 

105.3

 

 

 

110.9

 

(5)%

 

106.7

 

(1)%

Restricted stock units

 

2.8

 

 

 

3.0

 

(7)%

 

2.8

 

-

Total basic common shares outstanding

 

108.1

 

 

 

113.9

 

(5)%

 

109.5

 

(1)%

Total potentially dilutive shares

 

2.5

 

 

 

2.9

 

(14)%

 

2.3

 

9%

Total diluted shares

 

110.6

 

 

 

116.8

 

(5)%

 

111.8

 

(1)%

 

 

 

 

 

 

 

Capital Returned to Shareholders

 

 

 

 

 

 

Dividends paid

$

138

 

 

$

131

 

5%

$

140

 

(1)%

Common stock share repurchases

 

472

 

 

 

499

 

(5)%

 

492

 

(4)%

Total Capital Returned to Shareholders

$

610

 

 

$

630

 

(3)%

$

632

 

(3)%

 

 

 

 

 

 

 

(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)

4 Qtr 2022

4 Qtr 2021

% Over/

(Under)

3 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

 

 

 

Advisory fees

$

1,084

 

$

1,209

 

(10)%

$

1,107

 

(2)%

Financial planning fees

 

117

 

 

114

 

3%

 

97

 

21%

Transaction and other fees

 

90

 

 

96

 

(6)%

 

93

 

(3)%

Total management and financial advice fees

 

1,291

 

 

1,419

 

(9)%

 

1,297

 

-

Distribution fees:

 

 

 

 

 

 

 

 

Mutual funds

 

171

 

 

220

 

(22)%

 

180

 

(5)%

Insurance and annuity

 

203

 

 

256

 

(21)%

 

205

 

(1)%

Off-Balance sheet brokerage cash (1)

 

144

 

 

14

 

NM

 

110

 

31%

Other products

 

81

 

 

81

 

-

 

84

 

(4)%

Total distribution fees

 

599

 

 

571

 

5%

 

579

 

3%

Net investment income

 

331

 

 

68

 

NM

 

219

 

51%

Other revenues

 

61

 

 

58

 

5%

 

57

 

7%

Total revenues

 

2,282

 

 

2,116

 

8%

 

2,152

 

6%

Banking and deposit interest expense

 

56

 

 

2

 

NM

 

15

 

NM

Adjusted operating total net revenues

 

2,226

 

 

2,114

 

5%

 

2,137

 

4%

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

Distribution expenses

 

1,153

 

 

1,275

 

10%

 

1,149

 

-

Interest and debt expense

 

2

 

 

2

 

-

 

3

 

33%

General and administrative expense

 

406

 

 

365

 

(11)%

 

390

 

(4)%

Adjusted operating expenses

 

1,561

 

 

1,642

 

5%

 

1,542

 

(1)%

Pretax adjusted operating earnings

$

665

 

$

472

 

41%

$

595

 

12%

 

 

 

 

 

 

 

 

 

Pretax adjusted operating margin

 

29.9

%

 

22.3

%

 

 

27.8

%

 

 

 

 

 

 

 

 

 

 

(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)

4 Qtr 2022

4 Qtr 2021

% Over/

(Under)

3 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

 

 

AWM Total Client Assets

$

758,156

 

$

857,584

 

(12)%

$

711,428

 

 

7%

 

 

 

 

 

 

 

 

 

Total Client Flows (1)

$

12,381

 

$

12,542

 

(1)%

$

11,164

 

 

11%

 

 

 

 

 

 

 

 

 

Total Wrap Accounts

 

 

 

 

 

 

 

 

Beginning assets

$

385,210

 

$

435,375

 

(12)%

$

399,287

 

 

(4)%

Net flows

 

6,212

 

 

10,541

 

(41)%

 

6,449

 

 

(4)%

Market appreciation (depreciation) and other

 

20,674

 

 

18,772

 

10%

 

(20,526

)

 

NM

Total wrap ending assets

$

412,096

 

$

464,688

 

(11)%

$

385,210

 

 

7%

 

 

 

 

 

 

 

 

 

Advisory wrap account assets ending balance (2)

$

407,759

 

$

459,499

 

(11)%

$

381,136

 

 

7%

 

 

 

 

 

 

 

 

 

Brokerage Cash & Certificates Balances

 

 

 

 

 

 

 

 

On-balance sheet (Net Investment Income)

 

 

 

 

 

 

 

 

On-balance sheet - broker dealer

$

3,168

 

$

3,513

 

(10)%

$

3,345

 

 

(5)%

On-balance sheet - bank

 

18,305

 

 

11,419

 

60%

 

18,594

 

 

(2)%

On-balance sheet - certificate

 

9,313

 

 

5,300

 

76%

 

6,202

 

 

50%

Total on-balance sheet

$

30,786

 

$

20,232

 

52%

$

28,141

 

 

9%

Off-balance sheet (Distribution Fees)

 

 

 

 

 

 

 

 

Off-balance sheet - broker dealer

$

16,425

 

$

23,593

 

(30)%

$

18,155

 

 

(10)%

Total brokerage cash & certificates balances

$

47,211

 

$

43,825

 

8%

$

46,296

 

 

2%

 

Gross Fee Yield

 

 

 

 

 

 

 

 

On-balance sheet - broker dealer

 

3.14

%

 

0.06

%

 

 

1.74

 

%

 

On-balance sheet - bank

 

4.08

%

 

1.27

%

 

 

2.98

 

%

 

On-balance sheet - certificates

 

3.98

%

 

0.94

%

 

 

2.75

 

%

 

Off-balance sheet - broker dealer

 

3.31

%

 

0.26

%

 

 

2.13

 

%

 

 

 

 

 

 

 

 

 

 

Weighted Average Gross Fee Yield

 

3.73

%

 

0.62

%

 

 

2.51

 

%

 

 

 

 

 

 

 

 

 

 

Financial Advisors

 

 

 

 

 

 

 

 

Employee advisors

 

2,096

 

 

2,128

 

(2)%

 

2,089

 

 

-

Franchisee advisors

 

8,173

 

 

7,988

 

2%

 

8,193

 

 

-

Total financial advisors

 

10,269

 

 

10,116

 

2%

 

10,282

 

 

-

 

 

 

 

 

 

 

 

 

Advisor Retention

 

 

 

 

 

 

 

 

Employee

 

92.1

%

 

92.0

%

 

 

91.9

 

%

 

Franchisee

 

94.1

%

 

94.2

%

 

 

94.4

 

%

 

 

 

 

 

 

 

 

 

 

(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.

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

Ameriprise Financial, Inc.

Asset Management Segment Adjusted Operating Results

(in millions, unaudited)

4 Qtr 2022

4 Qtr 2021

% Over/

(Under)

3 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

 

 

 

Asset management fees:

 

 

 

 

 

 

 

 

Retail

$

483

 

 

$

624

 

 

(23)%

$

509

 

 

(5)%

Institutional

 

151

 

 

 

248

 

 

(39)%

 

159

 

 

(5)%

Transaction and other fees

 

50

 

 

 

58

 

 

(14)%

 

51

 

 

(2)%

Revenue from other sources (1)

 

4

 

 

 

7

 

 

(43)%

 

4

 

 

-

Total management and financial advice fees

 

688

 

 

 

937

 

 

(27)%

 

723

 

 

(5)%

Distribution fees:

 

 

 

 

 

 

 

 

Mutual funds

 

52

 

 

 

70

 

 

(26)%

 

56

 

 

(7)%

Insurance and annuity

 

38

 

 

 

49

 

 

(22)%

 

40

 

 

(5)%

Total distribution fees

 

90

 

 

 

119

 

 

(24)%

 

96

 

 

(6)%

Net investment income

 

3

 

 

 

2

 

 

50%

 

2

 

 

50%

Other revenues

 

4

 

 

 

2

 

 

NM

 

2

 

 

NM

Total revenues

 

785

 

 

 

1,060

 

 

(26)%

 

823

 

 

(5)%

Banking and deposit interest expense

 

 

 

 

 

 

-

 

 

 

-

Adjusted operating total net revenues

 

785

 

 

 

1,060

 

 

(26)%

 

823

 

 

(5)%

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

Distribution expenses

 

228

 

 

 

294

 

 

22%

 

238

 

 

4%

Amortization of deferred acquisition costs

 

1

 

 

 

3

 

 

67%

 

2

 

 

50%

Interest and debt expense

 

2

 

 

 

2

 

 

-

 

1

 

 

NM

General and administrative expense

 

408

 

 

 

431

 

 

5%

 

391

 

 

(4)%

Adjusted operating expenses

 

639

 

 

 

730

 

 

12%

 

632

 

 

(1)%

Pretax adjusted operating earnings

$

146

 

 

$

330

 

 

(56)%

$

191

 

 

(24)%

 

 

 

 

 

 

 

 

 

Net Pretax Adjusted Operating Margin Reconciliation

 

 

 

 

 

 

 

Adjusted operating total net revenues

$

785

 

 

$

1,060

 

 

(26)%

$

823

 

 

(5)%

Distribution pass thru revenues

 

(179

)

 

 

(234

)

 

24%

 

(187

)

 

4%

Subadvisory and other pass thru revenues

 

(88

)

 

 

(97

)

 

9%

 

(91

)

 

3%

Net adjusted operating revenues

$

518

 

 

$

729

 

 

(29)%

$

545

 

 

(5)%

 

 

 

 

 

 

 

 

 

Pretax adjusted operating earnings

$

146

 

 

$

330

 

 

(56)%

$

191

 

 

(24)%

Adjusted operating net investment income

 

(3

)

 

 

(2

)

 

(50)%

 

(2

)

 

(50)%

Amortization of intangibles

 

5

 

 

 

5

 

 

-

 

5

 

 

-

Net adjusted operating earnings

$

148

 

 

$

333

 

 

(56)%

$

194

 

 

(24)%

 

 

 

 

 

 

 

 

 

Pretax adjusted operating margin

 

18.6

 

%

 

31.1

 

%

 

 

23.2

 

%

 

Net pretax adjusted operating margin (2)

 

28.6

 

%

 

45.7

 

%

 

 

35.6

 

%

 

 

 

 

 

 

 

 

 

 

Performance fees (3)

 

 

 

 

 

 

 

 

Performance fees

$

8

 

 

$

90

 

 

(91)%

$

1

 

 

NM

General and administrative expense related to performance fees

 

3

 

 

 

55

 

 

95%

 

 

 

-

Net performance fees

$

5

 

 

$

35

 

 

(86)%

$

1

 

 

NM

 

 

 

 

 

 

 

 

 

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

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

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

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

Ameriprise Financial, Inc.

Asset Management Segment Operating Metrics

(in millions, unaudited)

4 Qtr 2022

4 Qtr 2021

% Over/

(Under)

3 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

 

 

Managed Assets Rollforward (1)

 

 

 

 

 

 

 

 

Global Retail Funds

 

 

 

 

 

 

 

 

Beginning assets

$

296,203

 

 

$

355,719

 

 

(17)%

$

322,938

 

 

(8)%

Inflows

 

11,836

 

 

 

20,084

 

 

(41)%

 

11,715

 

 

1%

Outflows

 

(20,128

)

 

 

(18,568

)

 

(8)%

 

(17,642

)

 

(14)%

Net VP/VIT fund flows

 

(1,133

)

 

 

(1,093

)

 

(4)%

 

(999

)

 

(13)%

Net new flows (2)

 

(9,425

)

 

 

423

 

 

NM

 

(6,926

)

 

(36)%

Reinvested dividends

 

5,676

 

 

 

13,414

 

 

(58)%

 

1,647

 

 

NM

Net flows

 

(3,749

)

 

 

13,837

 

 

NM

 

(5,279

)

 

29%

Distributions

 

(6,357

)

 

 

(15,093

)

 

58%

 

(1,861

)

 

NM

Acquired assets (3)

 

 

 

 

36,980

 

 

NM

 

 

 

-

Market appreciation (depreciation) and other

 

18,606

 

 

 

18,478

 

 

1%

 

(15,281

)

 

NM

Foreign currency translation (4)

 

4,590

 

 

 

(552

)

 

NM

 

(4,314

)

 

NM

Total ending assets

 

309,293

 

 

 

409,369

 

 

(24)%

 

296,203

 

 

4%

% of total retail assets sub-advised (9)

 

16.0

 

%

 

14.7

 

%

 

 

15.7

 

%

 

 

 

 

 

 

 

 

 

 

Global Institutional

 

 

 

 

 

 

 

 

Beginning assets

 

250,290

 

 

 

227,679

 

 

10%

 

275,212

 

 

(9)%

Inflows (5)

 

15,374

 

 

 

24,449

 

 

(37)%

 

14,932

 

 

3%

Outflows (5)

 

(12,042

)

 

 

(10,817

)

 

(11)%

 

(12,056

)

 

-

Net flows (2)

 

3,332

 

 

 

13,632

 

 

(76)%

 

2,876

 

 

16%

Acquired assets (3)

 

 

 

 

99,236

 

 

NM

 

 

 

-

Market appreciation (depreciation) and other (6)

 

10,952

 

 

 

5,244

 

 

NM

 

(17,785

)

 

NM

Foreign currency translation (4)

 

10,162

 

 

 

(1,104

)

 

NM

 

(10,013

)

 

NM

Total ending assets

 

274,736

 

 

 

344,687

 

 

(20)%

 

250,290

 

 

10%

 

 

 

 

 

 

 

 

 

Total managed assets

$

584,029

 

 

$

754,056

 

 

(23)%

$

546,493

 

 

7%

 

 

 

 

 

 

 

 

 

Total net flows

$

(417

)

 

$

27,469

 

 

NM

$

(2,403

)

 

83%

 

 

 

 

 

 

 

 

 

Legacy insurance partners flows

$

(1,663

)

 

$

(920

)

 

(81)%

$

(1,053

)

 

(58)%

 

 

 

 

 

 

 

 

 

Total Assets Under Advisement (7)

$

22,163

 

 

$

20,194

 

 

10%

$

22,313

 

 

(1)%

Model delivery AUA flows (8)

$

1,146

 

 

$

820

 

 

40%

$

(542

)

 

NM

 

 

 

 

 

 

 

 

 

(1) Q4 2021 rollforwards were restated for a reclass between retail and institutional. Total AUM remained unchanged.

(2) Included in net flows are the amounts from the US asset transfer from the BMO acquisition of $16,948 ($2,922 retail and $14,026 institutional) from Q4 2021.

(3) Reflects the acquisition of BMO's EMEA Asset Management business that closed on November 8, 2021.

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

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

(6) 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.

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

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

(9) Q4 2021 % of total retail assets sub-advised has been restated.

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

Ameriprise Financial, Inc.

Asset Management Segment Operating Metrics

(in millions, unaudited)

4 Qtr 2022

4 Qtr 2021

% Over/

(Under)

3 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

Total Managed Assets by Type (1)

 

 

 

 

 

 

Equity

$

301,223

 

 

$

402,841

 

(25)%

$

278,446

 

8%

Fixed income

 

209,997

 

 

 

277,039

 

(24)%

 

194,643

 

8%

Money market

 

21,936

 

 

 

10,084

 

NM

 

21,261

 

3%

Alternative

 

33,697

 

 

 

39,872

 

(15)%

 

35,238

 

(4)%

Hybrid and other

 

17,176

 

 

 

24,220

 

(29)%

 

16,905

 

2%

Total managed assets by type

$

584,029

 

 

$

754,056

 

(23)%

$

546,493

 

7%

 

 

 

 

 

 

 

Average Managed Assets by Type (1) (2)

 

 

 

 

 

 

Equity

$

298,195

 

 

$

372,152

 

(20)%

$

305,078

 

(2)%

Fixed income

 

204,680

 

 

 

251,533

 

(19)%

 

214,305

 

(4)%

Money market

 

21,876

 

 

 

8,258

 

NM

 

18,499

 

18%

Alternative

 

34,510

 

 

 

33,939

 

2%

 

36,962

 

(7)%

Hybrid and other

 

17,133

 

 

 

23,686

 

(28)%

 

18,417

 

(7)%

Total average managed assets by type

$

576,394

 

$

689,568

(16)%

$

593,261

(3)%

 

 

 

 

 

 

 

(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

 

4 Qtr 2022

 

 

 

 

 

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

1 year

3 year

5 year

10 year

Equity

56%

75%

75%

90%

Fixed Income

39%

52%

56%

86%

Asset Allocation

22%

61%

70%

90%

 

 

 

 

 

4- or 5-star Morningstar rated funds

Overall

3 year

5 year

10 year

Number of Rated Funds

131

91

86

99

Percent of Rated Assets

55%

43%

45%

57%

 

 

 

 

 

Retail Fund performance rankings for each fund are measured on a consistent basis against the most appropriate peer group or index. Peer groupings of Columbia funds are defined by Lipper category and are based on the Primary Share Class (i.e., Institutional if available, otherwise Advisor or Instl3 share class), net of fees. Peer groupings of Threadneedle funds are defined by either IA or Morningstar index and based on the Primary Share Class. Comparisons to Index are measured Gross of Fees.

 

 

 

 

 

To calculate asset weighted performance, the sum of the total assets of the funds with above median ranking are divided by total assets of all funds. Funds with more assets will receive a greater share of the total percentage above or below median.

 

 

 

 

 

Aggregated Asset Allocation Funds may include funds that invest in other Columbia or Threadneedle branded mutual funds included in both equity and fixed income.

 

 

 

 

 

Morningstar as of 12/31/22. Columbia funds are available for purchase by U.S. customers. Out of 104 Columbia funds rated (based on primary share class), 15 received a 5-star Overall Rating and 35 received a 4-star Overall Rating. Out of 157 Threadneedle funds rated (based on primary share class), 27 received a 5-star Overall Rating and 54 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)

4 Qtr 2022

 

4 Qtr 2021

% Over/

(Under)

3 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

184

 

 

$

237

 

(22)%

$

189

 

(3)%

Distribution fees

 

98

 

 

 

124

 

(21)%

 

101

 

(3)%

Net investment income

 

180

 

 

 

113

 

59%

 

151

 

19%

Premiums, policy and contract charges

 

352

 

 

 

337

 

4%

 

342

 

3%

Other revenues

 

2

 

 

 

4

 

(50)%

 

3

 

(33)%

Total revenues

 

816

 

 

 

815

 

-

 

786

 

4%

Banking and deposit interest expense

 

 

 

 

 

-

 

 

-

Adjusted operating total net revenues

 

816

 

 

 

815

 

-

 

786

 

4%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

99

 

 

 

134

 

26%

 

103

 

4%

Interest credited to fixed accounts

 

97

 

 

 

96

 

(1)%

 

97

 

-

Benefits, claims, losses and settlement expenses

 

253

 

 

 

244

 

(4)%

 

414

 

39%

Amortization of deferred acquisition costs

 

48

 

 

 

70

 

31%

 

49

 

2%

Interest and debt expense

 

11

 

 

 

9

 

(22)%

 

10

 

(10)%

General and administrative expense

 

79

 

 

 

79

 

-

 

82

 

4%

Adjusted operating expenses

 

587

 

 

 

632

 

7%

 

755

 

22%

Pretax adjusted operating earnings

$

229

 

$

183

25%

$

31

NM

 

 

 

 

 

 

 

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

Ameriprise Financial, Inc.

Retirement & Protection Solutions Segment Operating Metrics

(in millions, unaudited)

4 Qtr 2022

 

4 Qtr 2021

% Over/

(Under)

3 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

Variable Annuities Rollforwards

 

 

 

 

 

 

Beginning balance

$

71,262

 

 

$

89,635

 

(20)%

$

75,687

 

(6)%

Deposit

 

930

 

 

 

1,530

 

(39)%

 

923

 

1%

Withdrawals and terminations

 

(1,543

)

 

 

(2,011

)

23%

 

(1,419

)

(9)%

Net flows

 

(613

)

 

 

(481

)

(27)%

 

(496

)

(24)%

Investment performance and interest credited

 

3,736

 

 

 

3,138

 

19%

 

(3,929

)

NM

Total ending balance - contract accumulation values

$

74,385

 

 

$

92,292

 

(19)%

$

71,262

 

4%

 

 

 

 

 

 

 

Variable annuities fixed sub-accounts

$

4,779

 

 

$

4,990

 

(4)%

$

4,887

 

(2)%

 

 

 

 

 

 

 

Life Insurance In Force

$

198,859

 

 

$

198,553

 

-

$

198,510

 

-

 

 

 

 

 

 

 

Net Amount at Risk (Life)

$

38,638

 

 

$

37,652

 

3%

$

39,432

 

(2)%

 

 

 

 

 

 

 

Net Policyholder Reserves

 

 

 

 

 

 

VUL/UL

$

13,357

 

 

$

15,049

 

(11)%

$

12,718

 

5%

Term and whole life

 

159

 

 

 

167

 

(5)%

 

161

 

(1)%

Disability insurance

 

465

 

 

 

483

 

(4)%

 

469

 

(1)%

Other insurance

 

564

 

 

 

608

 

(7)%

 

573

 

(2)%

Total net policyholder reserves

$

14,545

 

 

$

16,307

 

(11)%

$

13,921

 

4%

 

 

 

 

 

 

 

DAC Ending Balances

 

 

 

 

 

 

Variable Annuities DAC

$

1,967

 

 

$

1,876

 

5%

$

1,808

 

9%

Life and Health DAC

$

1,146

 

 

$

847

 

35%

$

1,137

 

1%

 

 

 

 

 

 

 

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

Ameriprise Financial, Inc.

Corporate Segment Adjusted Operating Results and Metrics

(in millions, unaudited)

4 Qtr 2022

 

4 Qtr 2021

% Over/

(Under)

3 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

 

(3

)

 

 

(12

)

75%

 

(11

)

73%

Premiums, policy and contract charges

 

 

 

 

(1

)

NM

 

 

-

Other revenues

 

3

 

 

 

4

 

(25)%

 

2

 

50%

Total revenues

 

 

 

 

(9

)

NM

 

(9

)

NM

Banking and deposit interest expense

 

3

 

 

 

1

 

NM

 

2

 

(50)%

Adjusted operating total net revenues

 

(3

)

 

 

(10

)

70%

 

(11

)

73%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

-

 

 

-

Interest credited to fixed accounts

 

 

 

 

 

-

 

 

-

Benefits, claims, losses and settlement expenses

 

 

 

 

(1

)

NM

 

 

-

Amortization of deferred acquisition costs

 

 

 

 

(1

)

NM

 

 

-

Interest and debt expense

 

19

 

 

 

13

 

(46)%

 

14

 

(36)%

General and administrative expense

 

59

 

 

 

67

 

12%

 

48

 

(23)%

Adjusted operating expenses

 

78

 

 

 

78

 

-

 

62

 

(26)%

Pretax adjusted operating earnings (loss)

$

(81

)

 

$

(88

)

8%

$

(73

)

(11)%

 

 

 

 

 

 

 

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

Ameriprise Financial, Inc.

Corporate Segment Adjusted Operating Results and Metrics

(in millions, unaudited)

4 Qtr 2022

 

4 Qtr 2021

% Over/

(Under)

3 Qtr 2022

% Over/

(Under)

 

 

 

 

 

 

 

Long Term Care Adjusted Operating Income Statements

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

 

 

$

 

-

$

 

-

Distribution fees

 

 

 

 

 

-

 

 

-

Net investment income

 

42

 

 

 

37

 

14%

 

38

 

11%

Premiums, policy and contract charges

 

26

 

 

 

25

 

4%

 

25

 

4%

Other revenues

 

 

 

 

 

-

 

 

-

Total revenues

 

68

 

 

 

62

 

10%

 

63

 

8%

Banking and deposit interest expense

 

 

 

 

 

-

 

 

-

Adjusted operating total net revenues

 

68

 

 

 

62

 

10%

 

63

 

8%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

(4

)

 

 

(3

)

33%

 

(3

)

33%

Interest credited to fixed accounts

 

 

 

 

 

-

 

 

-

Benefits, claims, losses and settlement expenses

 

44

 

 

 

53

 

17%

 

62

 

29%

Amortization of deferred acquisition costs

 

 

 

 

 

-

 

 

-

Interest and debt expense

 

3

 

 

 

2

 

(50)%

 

3

 

-

General and administrative expense

 

7

 

 

 

6

 

(17)%

 

4

 

(75)%

Adjusted operating expenses

 

50

 

 

 

58

 

14%

 

66

 

24%

Pretax adjusted operating earnings (loss)

$

18

 

 

$

4

 

NM

$

(3

)

NM

 

 

 

 

 

 

 

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

 

 

 

 

 

 

Active Life Reserves

$

1,939

 

 

$

2,487

 

(22)%

$

1,949

 

(1)%

Disabled Life Reserves

 

608

 

 

 

565