Ameriprise Financial, Inc. (NYSE: AMP):
Earnings Per Diluted Share
Return on Equity, ex AOCI (1)
Q1
2021
Q1
2021
GAAP
$3.58
GAAP
(1.1)%
Adjusted Operating
$5.43
Adjusted Operating
29.9%
Ameriprise increased its quarterly dividend
9 percent to $1.13 per share
- First quarter adjusted operating earnings per diluted share was
$5.43. The prior year period included a tax benefit from a
projected net operating loss (NOL) of $1.12 per diluted share.
Excluding this impact, adjusted operating EPS increased 27 percent
from $4.29 reflecting strong business growth.
Perspective from Jim Cracchiolo,
Chairman and Chief Executive Officer
“Ameriprise delivered an excellent first
quarter, building on our momentum from 2020. We continue to execute
our strategy well, invest for business growth and deliver
meaningful results. And, as economies reopen globally and activity
increases, there's a large and growing opportunity to help more
consumers and institutions achieve their goals.
“Our priority is to deliver a
differentiated client experience and reach more people through our
leading advice value proposition at Ameriprise, as well as through
the broad capabilities and perspective at Columbia Threadneedle.
This consistent focus is resulting in strong organic growth,
including generating more than $14 billion of client net inflows in
the quarter.
“As we recently announced, we will be
complementing our growth with the strategic acquisition of BMO’s
EMEA asset management business. This will increase Columbia
Threadneedle’s presence in the European institutional market and
expand our investment capabilities and solutions to meet growing
client demand.
“With our consistent level of free-cash
flow generation and financial strength, we were again able to
increase our dividend another 9 percent – our 17th increase over
the past 16 years – use cash for the acquisition and ensure our
capital return plans are on track, all while maintaining our strong
financial foundation.”
- First quarter GAAP net income per diluted share was $3.58,
which was negatively impacted by market changes that affected the
valuation of derivatives. In the prior year period, the severe
market dislocation, steep interest rate reduction and credit spread
widening related to COVID-19 resulted in a substantial increase in
GAAP results. See details on page 2.
- Adjusted operating net revenue was $3.3 billion, a 10 percent
increase from strong organic growth, an excellent result in the
face of significant headwinds from low short-term interest
rates.
- General and administrative expenses were well managed in light
of business growth, up 7 percent. Excluding the impact of share
price appreciation on compensation expense, G&A was up 2
percent.
- Assets under management and administration were up 36 percent
to $1.14 trillion, a record high from strong client flows in Wealth
and Asset Management, as well as market appreciation.
- The company continues to generate strong organic growth, with
more than $14 billion of client net inflows from Advice &
Wealth Management and Asset Management.
- The advisor network grew to 10,031 with 93 new experienced
advisors joining the company in the quarter.
- Investment performance at Columbia Threadneedle Investments
remains excellent with 103 funds with 4- and 5-star Morningstar
ratings.
- The company returned $491 million of capital to shareholders in
the quarter and announced a 9 percent increase in its quarterly
dividend to $1.13 per share.
- On April 12, Ameriprise announced the acquisition of BMO’s EMEA
Asset Management business for approximately $845 million in cash.
This acquisition expands key capabilities in attractive and growing
market segments where BMO EMEA Asset Management has leading
positions.
(1) Return on equity excluding AOCI is
calculated on a trailing 12-month basis.
As indicated, the severe market dislocation and steep interest
rate reduction in the first quarter of 2020 related to COVID-19
distorted the company’s prior year GAAP and operating results. This
included a tax benefit in the year ago quarter from a projected net
operating loss (NOL) that was not ultimately realized.
Ameriprise Financial,
Inc.
First Quarter Summary
Quarter Ended March
31,
% Over/ (Under)
(in millions, except per share
amounts, unaudited)
2021
2020
GAAP net income
$
437
$
2,036
(79)%
Adjusted operating earnings (see
reconciliation on p. 25)
$
663
$
694
(4)%
Adjusted operating earnings excluding Net
Operating Loss (NOL) tax benefit (see reconciliation on p. 25)
$
663
$
550
21%
GAAP net income per diluted share (1)
$
3.58
$
15.88
(77)%
Adjusted operating earnings per diluted
share (see reconciliation on p. 25)
$
5.43
$
5.41
-
Adjusted operating earnings per diluted
share excluding Net Operating Loss (NOL) tax benefit (see
reconciliation on p. 25) (2)
$
5.43
$
4.29
27%
GAAP Return on Equity, ex. AOCI
(1.1
)
%
59.5
%
Adjusted Operating Return on Equity, ex.
AOCI
29.9
%
39.7
%
Weighted average common shares
outstanding:
Basic
119.8
126.4
Diluted
122.2
128.2
(1) GAAP EPS of $3.58, a reduction of 77
percent.
- Primarily driven by the prior year quarter, which was
positively impacted by the significant change in the company’s
credit spread and valuation of derivatives used to hedge the
company’s variable annuity living benefit guarantees due to severe
market dislocation.
- Current year quarter results were negatively impacted by market
changes that affected the valuation of derivatives.
(2) Adjusted operating earnings per
diluted share excluding net operating loss (NOL) tax benefit of
$5.43, up 27 percent.
- The significant equity market dislocation in the prior year
period created a tax benefit of $1.12 per diluted share associated
with the utilization of a NOL that was ultimately not
utilized.
Ameriprise Financial,
Inc.
Advice & Wealth Management
Segment Adjusted Operating Results
Quarter Ended March
31,
% Over/ (Under)
Adjusted(1) % Over/
(Under)
(in millions, unaudited)
2021
2020
Net revenues
$
1,879
$
1,695
11%
16%
Distribution expenses
1,135
970
(17)%
(17)%
G&A / other expense
355
347
(2)%
(2)%
Pretax adjusted operating earnings
$
389
$
378
3%
30%
Pretax adjusted operating margin
20.7
%
22.3
%
(160) bps
215 bps
(1) Adjusted for $78 million impact from
interest rates. See reconciliation on page 28.
Quarter Ended March
31,
% Over/ (Under)
(in billions, unless otherwise noted)
2021
2020
Total client assets
$
762
$
560
36%
Total client net flows (1)
$
9.3
$
7.7
21%
Wrap net flows (1)
$
10.4
$
6.7
55%
AWM cash balance
$
40.4
$
40.0
1%
Average gross yield on cash balances (in
bps)
65
172
Adjusted operating net revenue per advisor
(TTM in thousands)
$
689
$
680
1%
Adjusted for interest rates (2)
$
689
$
640
8%
(1) See definition on page 12.
(2) Adjusted for impact from interest
rates. See reconciliation on page 28.
Advice & Wealth Management pretax adjusted operating
earnings were $389 million, driven by strong flows, higher
transactional activity and strong expense management. Excluding the
impact from the decline in short-term interest rates of $78
million, adjusted operating earnings increased 30 percent and
pretax adjusted operating margin increased 215 basis points. On a
sequential basis, pretax operating earnings increased 11 percent
and pretax adjusted operating margin expanded 90 basis points.
Adjusted operating net revenues were $1.9 billion, reflecting
strong net flows and market appreciation. Excluding the decline in
short-term interest rates, revenues increased 16 percent. On a
sequential basis, revenues increased 6 percent from strong flows
and market appreciation, partially offset by fewer fee days in the
current quarter.
Total expenses were $1.5 billion. General and administrative
expense was well managed and increased 2 percent, which was in line
with expectations based upon the cost associated with increased
activity and the impact of share price appreciation on compensation
expense.
Total client assets grew 36 percent to $762 billion, with
continued strong total client flows of $9.3 billion in the quarter.
The company’s ability to meet client needs efficiently and
effectively is translating into excellent organic growth. Advisor
productivity remains high with a 55 percent increase in flows in
the investment advisory business and a 12 percent increase in
transactional activity. Wrap net flows reached a record $10.4
billion. Cash balances remain elevated at $40.4 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 $689,000. Excluding the decline in short-term
interest rates, adjusted net revenue per advisor increased 8
percent. Total advisors were 10,031 from a combination of high
advisor retention and the addition of 93 experienced advisors in
the quarter.
Ameriprise Financial,
Inc.
Asset Management Segment
Adjusted Operating Results
Quarter Ended March
31,
% Over/ (Under)
(in millions, unaudited)
2021
2020
Net revenues
$
828
$
686
21%
Distribution expenses
268
231
(16)%
G&A / other expenses
332
298
(11)%
Pretax adjusted operating earnings
$
228
$
157
45%
Net pretax adjusted operating margin
(1)
43.9
%
37.9
%
Quarter Ended March
31,
% Over/ (Under)
(in billions)
2021
2020
Total segment AUM
$
564
$
426
32%
Net Flows
Global Retail net flows
$
4.6
$
(2.9
)
NM
Global Institutional net flows, ex. legacy
insurance partners flows
1.6
1.1
45%
Legacy insurance partners flows
(1.3
)
(0.6
)
NM
Total segment net flows
$
4.9
$
(2.4
)
NM
Model delivery AUA Flows (2)
$
0.3
$
0.1
NM
(1) See reconciliation on page 13.
(2) Estimated based on the period to
period change in assets less calculated performance based on
strategy returns on a one-quarter lag.
NM Not Meaningful - variance equal to or
greater than 100%
Asset Management pretax adjusted operating earnings were
$228 million, up 45 percent, reflecting our investment engine,
which is driving revenue growth through consistent investment
performance and compelling thought leadership leading to increased
customer engagement. The prior year quarter included an unfavorable
performance fee adjustment. The net pretax adjusted operating
margin was 43.9 percent.
Adjusted operating revenues increased 21 percent to $828 million
from the cumulative benefit of inflows, a favorable mix shift and
higher equity markets. The overall fee rate remained strong at 52
basis points.
Adjusted operating expenses increased 13 percent. General and
administrative expenses grew 12 percent driven primarily from
higher compensation expense related to stronger business
performance and Ameriprise share price appreciation compared to
last year, as well as the costs associated with increased activity
levels.
Total assets under management increased 32 percent reflecting
higher equity markets and net inflows. Investment performance
remained strong across equity, fixed income and asset-allocation
strategies.
In the quarter, net inflows were $4.9 billion, an improvement of
$7.3 billion from a year ago. Excluding legacy insurance partners
outflows, net inflows were $6.2 billion, reflecting a continuation
of positive flow trends across multiple distribution channels and
strategies.
- Retail net inflows were $4.6 billion. Net inflows in North
America were $4.8 billion with notable inflows in the broker-dealer
channel partially offset by modest outflows in EMEA.
- Global institutional net inflows were $1.6 billion, with gross
sales across multiple strategies.
Ameriprise Financial,
Inc.
Retirement & Protection
Solutions Segment (1) Adjusted Operating Results
Quarter Ended March
31,
% Over/ (Under)
(in millions, unaudited)
2021
2020
Net revenues
$
787
$
759
4%
Expenses
604
592
(2)%
Pretax adjusted operating earnings
$
183
$
167
10%
Retirement & Protection Solutions pretax adjusted
operating earnings increased 10 percent to $183 million. Results
were strong from market appreciation, partially offset by higher
claims versus an abnormally low level in the year ago period.
Overall claims remain within expected ranges.
Retirement sales increased 30 percent year-over-year to $1.5
billion. Retirement sales without living benefit guarantees
represented 64 percent of variable annuity sales, driven by our
lower-risk structured product, as well as our RAVA 5 product
without living benefit guarantees. This sales shift is having a
gradual impact on our inforce block, with account values with
living benefit riders down nearly 2 percentage points
year-over-year to 63 percent. 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 de
minimis at 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 were flat to a year ago with a
product mix shift that is consistent with our focused approach.
Sales of higher-margin accumulation VUL products increased more
than 75 percent 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.
Corporate & Other Segment
(1) Adjusted Operating Results
Quarter Ended March
31,
% Over/ (Under)
(in millions, unaudited)
2021
2020
Corporate & Other, excluding Closed
Blocks
$
(63
)
$
(52
)
(21)%
Closed Blocks (2)
42
2
NM
Pretax adjusted operating earnings
$
(21
)
$
(50
)
58%
Long Term Care
$
46
$
2
NM
Fixed Annuities
(4
)
—
-
Closed Blocks pretax adjusted operating
earnings
$
42
$
2
NM
(1) Fixed Annuities was moved into the
Corporate & Other segment as a closed block. Prior periods have
been restated.
(2) Long Term Care and Fixed
Annuities.
NM Not Meaningful - variance equal to or
greater than 100%
Total Corporate & Other pretax adjusted operating
loss was $21 million, a $29 million improvement from the prior
year.
Corporate & Other, excluding Closed Blocks, pretax
adjusted operating loss was $63 million. Results in the quarter
included $11 million of higher compensation expense related to the
impact of Ameriprise share price appreciation and $15 million from
a strategic investment gain. The year ago quarter included an $11
million benefit from Ameriprise share price depreciation.
Long Term Care pretax adjusted operating earnings were
$46 million from higher mortality and terminations, primarily
related to COVID-19, which had a decreasing impact as we moved
through the quarter.
Fixed Annuities pretax adjusted operating loss was $4
million from narrowed spreads related to continued low interest
rates.
Taxes
The operating effective tax rate was 14.9 percent for the first
quarter. The full year operating effective tax rate is expected to
be approximately 17 percent.
About Ameriprise Financial
At Ameriprise Financial, we have been helping people feel
confident about their financial future for more than 125 years.
With extensive advisory, asset management and insurance
capabilities and a nationwide network of 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. Non-GAAP financial measure
reconciliations can be found on the subsequent pages.
Forward-Looking Statements
This news release contains forward-looking statements that
reflect management’s plans, estimates and beliefs. Actual results
could differ materially from those described in these
forward-looking statements. Examples of such forward-looking
statements include:
- statements of the company’s plans, intentions, positioning,
expectations, objectives or goals, including those relating to
asset flows, mass affluent and affluent client acquisition
strategy, client retention and growth of our client base, financial
advisor productivity, retention, recruiting and enrollments, the
introduction, cessation, terms or pricing of new or existing
products and services, acquisition integration, general and
administrative costs, consolidated tax rate, return of capital to
shareholders, and excess capital position and financial flexibility
to capture additional growth opportunities;
- 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 estimating the expected full year operating
effective tax rate;
- 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, 2020, Part 1, Item 1A available at
ir.ameriprise.com. Management undertakes no obligation to update
publicly or revise any forward-looking statements.
The financial results discussed in this news release represent
past performance only, which may not be used to predict or project
future results. The financial results and values presented in this
news release are based upon asset valuations that represent
estimates as of the date of this news release and may be revised in
the company’s Form 10-Q for the quarter ended March 31, 2021.
Ameriprise Financial announces financial and other information
to investors through the company’s investor relations website at
ir.ameriprise.com, as well as SEC filings, press releases, public
conference calls and webcasts. Investors and others interested in
the company are encouraged to visit the investor relations website
from time to time, as information is updated and new information is
posted. The website also allows users to sign up for automatic
notifications in the event new materials are posted. The
information found on the website is not incorporated by reference
into this release or in any other report or document the company
furnishes or files with the SEC.
Ameriprise Financial,
Inc.
Consolidated GAAP
Results
(in millions, except per share amounts,
unaudited)
1 Qtr 2021
1 Qtr 2020
% Over/ (Under)
4 Qtr 2020
% Over/ (Under)
Revenues
Management and financial advice fees
$
2,102
$
1,770
19%
$
2,003
5%
Distribution fees
458
464
(1)%
422
9%
Net investment income
377
328
15%
318
19%
Premiums, policy and contract charges
347
395
(12)%
375
(7)%
Other revenues
71
69
3%
71
-
Total revenues
3,355
3,026
11%
3,189
5%
Banking and deposit interest expense
5
25
80%
6
17%
Total net revenues
3,350
3,001
12%
3,183
5%
Expenses
Distribution expenses
1,175
995
(18)%
1,096
(7)%
Interest credited to fixed accounts
159
91
(75)%
121
(31)%
Benefits, claims, losses and settlement
expenses
653
(1,747
)
NM
982
34%
Amortization of deferred acquisition
costs
5
512
99%
(72
)
NM
Interest and debt expense
42
46
9%
38
(11)%
General and administrative expense
823
753
(9)%
828
1%
Total expenses
2,857
650
NM
2,993
5%
Pretax income
493
2,351
(79)%
190
NM
Income tax provision
56
315
82%
13
NM
Net income
$
437
$
2,036
(79)%
$
177
NM
Earnings per share
Basic earnings per share
$
3.65
$
16.11
$
1.46
Earnings per diluted share
$
3.58
$
15.88
$
1.43
Weighted average common shares
outstanding
Basic
119.8
126.4
120.9
Diluted
122.2
128.2
123.4
NM Not Meaningful - variance equal to or
greater than 100%
Ameriprise Financial,
Inc.
Consolidated Highlights and
Capital Summary
(in millions unless otherwise noted,
unaudited)
1 Qtr 2021
1 Qtr 2020
% Over/ (Under)
4 Qtr 2020
% Over/ (Under)
Assets Under Management and
Administration
Advice & Wealth Management AUM
$
396,533
$
273,072
45%
$
376,811
5%
Asset Management AUM
564,131
426,163
32%
546,613
3%
Corporate AUM
97
48
NM
82
18%
Eliminations
(39,655
)
(27,923
)
(42)%
(37,483
)
(6)%
Total Assets Under Management
921,106
671,360
37%
886,023
4%
Total Assets Under
Administration
222,887
167,760
33%
216,066
3%
Total AUM and AUA
$
1,143,993
$
839,120
36%
$
1,102,089
4%
S&P 500
Daily average
3,861
3,069
26%
3,555
9%
Period end
3,973
2,585
54%
3,756
6%
Weighted Equity Index (WEI) (1)
Daily average
2,662
2,111
26%
2,414
10%
Period end
2,725
1,753
55%
2,573
6%
Common shares
Beginning balance
116.8
123.9
(6)%
118.6
(2)%
Repurchases
(1.7
)
(2.5
)
32%
(2.1
)
19%
Issuances
1.8
1.8
-
1.0
80%
Other
(0.9
)
(0.9
)
-
(0.7
)
(29)%
Total common shares outstanding
116.0
122.3
(5)%
116.8
(1)%
Restricted stock units
3.0
3.1
(3)%
3.2
(6)%
Total basic common shares
outstanding
119.0
125.4
(5)%
120.0
(1)%
Total potentially dilutive shares
2.5
0.9
NM
2.5
-
Total diluted shares
121.5
126.3
(4)%
122.5
(1)%
Capital Returned to
Shareholders
Dividends paid
$
128
$
126
2%
$
126
2%
Common stock share repurchases
363
386
(6)%
376
(3)%
Total Capital Returned to
Shareholders
$
491
$
512
(4)%
$
502
(2)%
(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)
1 Qtr 2021
1 Qtr 2020
% Over/ (Under)
4 Qtr 2020
% Over/ (Under)
Revenues
Management and financial advice fees:
Advisory fees
$
1,028
$
854
20%
$
953
8%
Financial planning fees
88
81
9%
100
(12)%
Transaction and other fees
89
89
-
88
1%
Total management and financial advice
fees
1,205
1,024
18%
1,141
6%
Distribution fees:
Mutual funds
207
184
13%
197
5%
Insurance and annuity
240
208
15%
229
5%
Other products
112
156
(28)%
96
17%
Total distribution fees
559
548
2%
522
7%
Net investment income
64
100
(36)%
66
(3)%
Other revenues
56
48
17%
53
6%
Total revenues
1,884
1,720
10%
1,782
6%
Banking and deposit interest expense
5
25
80%
6
17%
Adjusted operating total net
revenues
1,879
1,695
11%
1,776
6%
Expenses
Distribution expenses
1,135
970
(17)%
1,065
(7)%
Interest and debt expense
3
2
(50)%
2
(50)%
General and administrative expense
352
345
(2)%
357
1%
Adjusted operating expenses
1,490
1,317
(13)%
1,424
(5)%
Pretax adjusted operating
earnings
$
389
$
378
3%
$
352
11%
Pretax adjusted operating
margin
20.7
%
22.3
%
19.8
%
Pretax adjusted operating earnings by
product
Certificates and Banking - Combined
$
19
$
17
12%
$
21
(10)%
Wealth Management & Distribution
370
361
2%
331
12%
Pretax adjusted operating
earnings
$
389
$
378
3%
$
352
11%
Ameriprise Financial,
Inc.
Advice & Wealth Management
Segment Operating Metrics
(in millions unless otherwise noted,
unaudited)
1 Qtr 2021
1 Qtr 2020
% Over/ (Under)
4 Qtr 2020
% Over/ (Under)
AWM Total Client Assets
$
761,566
$
559,808
36%
$
732,171
4%
Total Client Flows (1)
$
9,305
$
7,675
21%
$
9,697
(4)%
Total Wrap Accounts
Beginning assets
$
380,013
$
317,536
20%
$
339,950
12%
Net flows (2)
10,413
6,712
55%
8,999
16%
Market appreciation (depreciation) and
other (2)
9,391
(48,743
)
NM
31,064
(70)%
Total wrap ending assets
$
399,817
$
275,505
45%
$
380,013
5%
Advisory wrap account assets ending
balance (3)
$
395,299
$
272,263
45%
$
375,657
5%
Brokerage Cash & Certificates
Balances
On-balance sheet (Net Investment
Income)
On-balance sheet - broker dealer
$
3,385
$
3,517
(4)%
$
3,487
(3)%
On-balance sheet - bank
7,985
6,160
30%
7,405
8%
On-balance sheet - certificate
6,258
7,336
(15)%
6,760
(7)%
Total on-balance sheet
$
17,628
$
17,013
4%
$
17,652
-
Off-balance sheet (Distribution
Fees)
Off-balance sheet - broker dealer
$
22,733
$
22,988
(1)%
$
23,842
(5)%
Total brokerage cash & certificates
balances
$
40,361
$
40,001
1%
$
41,494
(3)%
Gross Fee Yield
On-balance sheet - broker dealer
0.10
%
1.17
%
0.11
%
On-balance sheet - bank
1.37
%
2.15
%
1.45
%
On-balance sheet - certificates
1.22
%
2.43
%
1.32
%
Off-balance sheet - broker dealer
0.28
%
1.40
%
0.29
%
Weighted Average Gross Fee Yield
0.65
%
1.72
%
0.69
%
Financial Advisors
Employee advisors
2,107
2,102
-
2,117
-
Franchisee advisors
7,924
7,776
2%
7,805
2%
Total financial advisors
10,031
9,878
2%
9,922
1%
Advisor Retention
Employee
92.0
%
90.2
%
92.1
%
Franchisee
94.4
%
92.8
%
94.0
%
(1) Total client flows represent inflows
of client cash and securities less client outfows. 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, interest and 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)
1 Qtr 2021
1 Qtr 2020
% Over/ (Under)
4 Qtr 2020
% Over/ (Under)
Revenues
Management and financial advice fees:
Asset management fees:
Retail
$
531
$
447
19%
$
492
8%
Institutional
123
85
45%
134
(8)%
Transaction and other fees
52
47
11%
51
2%
Revenue from other sources (1)
7
4
75%
4
75%
Total management and financial advice
fees
713
583
22%
681
5%
Distribution fees:
Mutual funds
67
60
12%
63
6%
Insurance and annuity
47
43
9%
45
4%
Total distribution fees
114
103
11%
108
6%
Net investment income
1
—
-
8
(88)%
Other revenues
—
—
-
1
NM
Total revenues
828
686
21%
798
4%
Banking and deposit interest expense
—
—
-
—
-
Adjusted operating total net
revenues
828
686
21%
798
4%
Expenses
Distribution expenses
268
231
(16)%
254
(6)%
Amortization of deferred acquisition
costs
3
3
-
3
-
Interest and debt expense
1
1
-
1
-
General and administrative expense
328
294
(12)%
339
3%
Adjusted operating expenses
600
529
(13)%
597
(1)%
Pretax adjusted operating
earnings
$
228
$
157
45%
$
201
13%
Net Pretax Adjusted Operating Margin
Reconciliation
Adjusted operating total net revenues
$
828
$
686
21%
$
798
4%
Distribution pass thru revenues
(217
)
(186
)
(17)%
(205
)
(6)%
Subadvisory and other pass thru
revenues
(87
)
(78
)
(12)%
(94
)
7%
Net adjusted operating revenues
$
524
$
422
24%
$
499
5%
Pretax adjusted operating earnings
$
228
$
157
45%
$
201
13%
Adjusted operating net investment
income
(1
)
—
-
(8
)
88%
Amortization of intangibles
3
3
-
4
(25)%
Net adjusted operating earnings
$
230
$
160
44%
$
197
17%
Pretax adjusted operating margin
27.5
%
22.9
%
25.2
%
Net pretax adjusted operating margin
(2)
43.9
%
37.9
%
39.5
%
Performance fees (3)
Performance fees
$
1
$
—
-
$
17
(94)%
Performance fee related to general and
administrative expense
—
—
-
4
NM
Net performance fees
$
1
$
—
-
$
13
(92)%
(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)
1 Qtr 2021
1 Qtr 2020
% Over/ (Under)
4 Qtr 2020
% Over/ (Under)
Total Managed Assets by Type
Equity
$
319,446
$
210,463
52%
$
302,563
6%
Fixed income
195,020
174,012
12%
196,501
(1)%
Money market
5,766
4,947
17%
5,899
(2)%
Alternative
3,841
2,745
40%
3,623
6%
Hybrid and other
40,058
33,996
18%
38,027
5%
Total managed assets by type
$
564,131
$
426,163
32%
$
546,613
3%
Average Managed Assets by Type
(1)
Equity
$
308,816
$
246,757
25%
$
279,128
11%
Fixed income
195,823
181,159
8%
192,196
2%
Money market
5,921
4,745
25%
5,397
10%
Alternative
3,775
3,030
25%
3,512
7%
Hybrid and other
39,212
35,397
11%
36,748
7%
Total average managed assets by
type
$
553,547
$
471,088
18%
$
516,981
7%
Managed Assets Rollforward
Global Retail Funds
Beginning assets
$
323,483
$
287,452
13%
$
289,922
12%
Inflows
22,549
17,371
30%
16,922
33%
Outflows
(17,637
)
(20,028
)
12%
(14,518
)
(21)%
Net VP/VIT fund flows
(1,019
)
(737
)
(38)%
(840
)
(21)%
Net new flows
3,893
(3,394
)
NM
1,564
NM
Reinvested dividends
717
502
43%
6,219
(88)%
Net flows
4,610
(2,892
)
NM
7,783
(41)%
Distributions
(858
)
(669
)
(28)%
(7,088
)
88%
Market appreciation (depreciation) and
other
13,187
(43,485
)
NM
30,847
(57)%
Foreign currency translation (2)
(152
)
(1,368
)
89%
2,019
NM
Total ending assets
340,270
239,038
42%
323,483
5%
% of total retail assets sub-advised
16.4
%
19.2
%
17.7
%
Global Institutional
Beginning assets
223,130
206,729
8%
208,082
7%
Inflows (3)
7,741
8,561
(10)%
5,378
44%
Outflows (3)
(7,462
)
(8,028
)
7%
(6,177
)
(21)%
Net flows
279
533
(48)%
(799
)
NM
Market appreciation (depreciation) and
other (4)
176
(16,698
)
NM
11,388
(98)%
Foreign currency translation (2)
276
(3,439
)
NM
4,459
(94)%
Total ending assets
223,861
187,125
20%
223,130
-
Total managed assets
$
564,131
$
426,163
32%
$
546,613
3%
Total net flows
$
4,889
$
(2,359
)
NM
$
6,984
(30)%
Legacy insurance partners flows
$
(1,262
)
$
(602
)
NM
$
(1,350
)
7%
Total Assets Under Advisement
(5)
$
16,036
$
12,796
25%
$
13,929
15%
Model delivery AUA flows (6)
$
294
$
66
NM
$
226
30%
(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
1 Qtr 2021
Retail Fund Rankings in Top 2 Quartiles
or Above Index Benchmark - Asset Weighted
1 year
3 year
5 year
10 year
Equity
60%
87%
81%
88%
Fixed Income
80%
69%
88%
89%
Asset Allocation
31%
88%
95%
89%
4- or 5-star Morningstar rated
funds
Overall
3 year
5 year
10 year
Number of Rated Funds
103
92
92
89
Percent of Rated Assets
68%
61%
58%
72%
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.
Ameriprise Financial,
Inc.
Retirement & Protection
Solutions Segment (1) Adjusted Operating Results
(in millions, unaudited)
1 Qtr 2021
1 Qtr 2020
% Over/ (Under)
4 Qtr 2020
% Over/ (Under)
Revenues
Management and financial advice fees
$
222
$
199
12%
$
219
1%
Distribution fees
116
105
10%
115
1%
Net investment income
126
130
(3)%
128
(2)%
Premiums, policy and contract charges
323
325
(1)%
337
(4)%
Other revenues
—
—
-
—
-
Total revenues
787
759
4%
799
(2)%
Banking and deposit interest expense
—
—
-
—
-
Adjusted operating total net
revenues
787
759
4%
799
(2)%
Expenses
Distribution expenses
129
110
(17)%
124
(4)%
Interest credited to fixed accounts
96
100
4%
97
1%
Benefits, claims, losses and settlement
expenses
234
245
4%
253
8%
Amortization of deferred acquisition
costs
63
54
(17)%
59
(7)%
Interest and debt expense
10
10
-
11
9%
General and administrative expense
72
73
1%
75
4%
Adjusted operating expenses
604
592
(2)%
619
2%
Pretax adjusted operating
earnings
$
183
$
167
10%
$
180
2%
(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)
1 Qtr 2021
1 Qtr 2020
% Over/ (Under)
4 Qtr 2020
% Over/ (Under)
Variable Annuities Rollforwards
Beginning balance
$
85,774
$
80,068
7%
$
79,846
7%
Deposit
1,428
1,072
33%
1,327
8%
Withdrawals and terminations
(1,984
)
(1,784
)
(11)%
(1,786
)
(11)%
Net flows
(556
)
(712
)
22%
(459
)
(21)%
Investment performance and interest
credited
1,746
(9,397
)
NM
6,387
(73)%
Other
—
—
-
—
-
Total ending balance - contract
accumulation values
$
86,964
$
69,959
24%
$
85,774
1%
Variable annuities fixed
sub-accounts
$
5,075
$
5,125
(1)%
$
5,104
(1)%
Payout Annuities Reserve
Balance
$
1,908
$
2,037
(6)%
$
1,948
(2)%
Life Insurance In Force
$
196,164
$
194,617
1%
$
195,750
-
Net Amount at Risk (Life)
$
37,636
$
40,075
(6)%
$
37,817
-
Net Policyholder Reserves
VUL/UL
$
14,106
$
11,224
26%
$
13,738
3%
Term and whole life
172
180
(4)%
174
(1)%
Disability insurance
503
508
(1)%
504
-
Other insurance
637
668
(5)%
643
(1)%
Total net policyholder reserves
$
15,418
$
12,580
23%
$
15,059
2%
DAC Ending Balances
Variable Annuities DAC
$
1,792
$
1,397
28%
$
1,711
5%
Life and Health DAC
$
839
$
894
(6)%
$
766
10%
NM Not Meaningful - variance equal to or
greater than 100%
Ameriprise Financial,
Inc.
Corporate Segment Adjusted
Operating Results and Metrics
(in millions, unaudited)
1 Qtr 2021
1 Qtr 2020
% Over/ (Under)
4 Qtr 2020
% 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
(1
)
(10
)
90%
(13
)
92%
Premiums, policy and contract charges
—
—
-
—
-
Other revenues
1
6
(83)%
2
(50)%
Total revenues
—
(4
)
NM
(11
)
NM
Banking and deposit interest expense
—
1
NM
1
NM
Adjusted operating total net
revenues
—
(5
)
NM
(12
)
NM
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
7
9
22%
10
30%
General and administrative expense
56
38
(47)%
58
3%
Adjusted operating expenses
63
47
(34)%
67
6%
Pretax adjusted operating earnings
(loss)
$
(63
)
$
(52
)
(21)%
$
(79
)
20%
NM Not Meaningful - variance equal to or
greater than 100%
Ameriprise Financial,
Inc.
Corporate Segment Adjusted
Operating Results and Metrics
(in millions, unaudited)
1 Qtr 2021
1 Qtr 2020
% Over/ (Under)
4 Qtr 2020
% Over/ (Under)
Long Term Care Adjusted Operating
Income Statements
Revenues
Management and financial advice fees
$
—
$
—
-
$
—
-
Distribution fees
—
—
-
—
-
Net investment income
38
42
(10)%
38
-
Premiums, policy and contract charges
24
25
(4)%
26
(8)%
Other revenues
—
—
-
—
-
Total revenues
62
67
(7)%
64
(3)%
Banking and deposit interest expense
—
—
-
—
-
Adjusted operating total net
revenues
62
67
(7)%
64
(3)%
Expenses
Distribution expenses
(3
)
(2
)
50%
(3
)
-
Interest credited to fixed accounts
—
—
-
—
-
Benefits, claims, losses and settlement
expenses
11
57
81%
39
72%
Amortization of deferred acquisition
costs
—
—
-
—
-
Interest and debt expense
3
3
-
1
NM
General and administrative expense
5
7
29%
6
17%
Adjusted operating expenses
16
65
75%
43
63%
Pretax adjusted operating earnings
(loss)
$
46
$
2
NM
$
21
NM
Long Term Care Policyholder Reserves,
net of reinsurance (1)
Active Life Reserves
$
2,431
$
2,061
18%
$
2,539
(4)%
Disabled Life Reserves
540
574
(6)%
564
(4)%
Total long term care policyholder
reserves, net of reinsurance
$
2,971
$
2,635
13%
$
3,103
(4)%
(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 (1) Adjusted
Operating Results and Metrics
(in millions, unaudited)
1 Qtr 2021
1 Qtr 2020
% Over/ (Under)
4 Qtr 2020
% Over/ (Under)
Fixed Annuities Adjusted Operating
Income Statements
Revenues
Management and financial advice fees
$
—
$
—
-
$
—
-
Distribution fees
—
—
-
—
-
Net investment income
63
72
(13)%
67
(6)%
Premiums, policy and contract charges
—
—
-
—
-
Other revenues
14
15
(7)%
15
(7)%
Total revenues
77
87
(11)%
82
(6)%
Banking and deposit interest expense
—
—
-
—
-
Adjusted operating total net
revenues
77
87
(11)%
82
(6)%
Expenses
Distribution expenses
1
1
-
1
-
Interest credited to fixed accounts
61
66
8%
65
6%
Benefits, claims, losses and settlement
expenses
2
2
-
1
NM
Amortization of deferred acquisition
costs
4
2
NM
3
(33)%
Interest and debt expense
5
7
29%
5
-
General and administrative expense
8
9
11%
9
11%
Adjusted operating expenses
81
87
7%
84
4%
Pretax adjusted operating earnings
(loss)
$
(4
)
$
—
-
$
(2
)
NM
Fixed Deferred Annuities - ending
balance - contract accumulation values
$
7,850
$
8,165
(4)%
$
7,964
(1)%
Tax Equivalent Spread - Fixed Deferred
Annuities (2)
Gross rate of return of invested
assets
3.1
%
3.7
%
3.3
%
Crediting rate excluding capitalized
interest
(3.3
)
%
(3.3
)
%
(3.3
)
%
Tax equivalent margin spread
(0.2
)
%
0.4
%
—
%
Fixed Deferred Annuities DAC Ending
Balance
$
48
$
68
(29)%
$
50
(4)%
(1) Fixed annuities was moved into the
Corporate & Other segment as a closed block. Prior periods have
been restated.
(2) Attributable to interest sensitive
products only, which has been approximately 99% of the total ending
fixed deferred annuities accumulation values in the periods
reported. The asset earnings rate is a calculated yield based on
specifically assigned assets.
NM Not Meaningful - variance equal to or
greater than 100%
Ameriprise Financial,
Inc.
Eliminations (1) Adjusted
Operating Results
(in millions, unaudited)
1 Qtr 2021
1 Qtr 2020
% Over/ (Under)
4 Qtr 2020
% Over/ (Under)
Revenues
Management and financial advice fees
$
(36
)
$
(35
)
(3)%
$
(36
)
-
Distribution fees
(331
)
(292
)
(13)%
(323
)
(2)%
Net investment income
(4
)
(4
)
-
(5
)
20%
Premiums, policy and contract charges
(8
)
(8
)
-
(8
)
-
Other revenues
—
—
-
—
-
Total revenues
(379
)
(339
)
(12)%
(372
)
(2)%
Banking and deposit interest expense
—
(1
)
NM
(1
)
NM
Adjusted operating total net
revenues
(379
)
(338
)
(12)%
(371
)
(2)%
Expenses
Distribution expenses
(355
)
(315
)
13%
(345
)
3%
Interest credited to fixed accounts
—
—
-
—
-
Benefits, claims, losses and settlement
expenses
(4
)
(5
)
(20)%
(5
)
(20)%
Amortization of deferred acquisition
costs
—
—
-
—
-
Interest and debt expense
(3
)
(3
)
-
(4
)
(25)%
General and administrative expense
(17
)
(15
)
13%
(17
)
-
Adjusted operating expenses
(379
)
(338
)
12%
(371
)
2%
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)
March 31, 2021
March 31, 2020
December 31,
2020
Long-term Debt Summary
Senior notes (1)
$
2,800
$
2,300
$
2,800
Finance lease liabilities
46
54
44
Fair value of hedges, unamortized discount
and debt issuance costs
(12
)
(10
)
(13
)
Total Ameriprise Financial long-term
debt
2,834
2,344
2,831
Non-recourse debt of consolidated
investment entities
2,671
1,376
1,913
Total long-term debt
$
5,505
$
3,720
$
4,744
Total Ameriprise Financial long-term
debt
$
2,834
$
2,344
$
2,831
Fair value of hedges, unamortized discount
and debt issuance costs
12
10
13
Finance lease liabilities
(46
)
(54
)
(44
)
Total Ameriprise Financial long-term
debt excluding fair value of hedges, unamortized discount, debt
issuance costs and finance lease liabilities
$
2,800
$
2,300
$
2,800
Total equity (2)
$
5,502
$
6,693
$
5,867
Equity of consolidated investment
entities
(1
)
(2
)
(3
)
Total equity excluding CIEs
$
5,501
$
6,691
$
5,864
Total Ameriprise Financial capital
$
8,334
$
9,037
$
8,698
Total Ameriprise Financial capital
excluding fair value of hedges, unamortized discount, debt issuance
costs, finance lease liabilities and equity of CIEs
$
8,299
$
8,991
$
8,664
Debt to capital
Total Ameriprise Financial long-term debt
to total Ameriprise Financial capital (1)
34.0
%
25.9
%
32.5
%
Total Ameriprise Financial long-term debt
to total Ameriprise Financial capital excluding fair value of
hedges, unamortized discount, best issuance costs, finance lease
liabilities and equity of CIEs (1)(2)
33.7
%
25.6
%
32.3
%
(1) The first quarter of 2020 does not
include $500 million of debt issuance that settled on April 2,
2020.
(2) Includes accumulated other
comprehensive income, net of tax.
Ameriprise Financial,
Inc.
Consolidated Balance
Sheets
(in millions, unaudited)
March 31, 2021
December 31,
2020
Assets
Cash and cash equivalents
$
5,462
$
6,751
Cash of consolidated investment
entities
325
94
Investments
40,437
41,031
Investments of consolidated investment
entities
2,642
1,918
Separate account assets
93,483
92,611
Receivables
8,038
7,819
Receivables of consolidated investment
entities
17
16
Deferred acquisition costs
2,685
2,532
Restricted and segregated cash and
investments
2,564
2,558
Other assets
10,082
10,551
Other assets of consolidated investment
entities
2
2
Total Assets
$
165,737
$
165,883
Liabilities
Policyholder account balances, future
policy benefits and claims
$
32,702
$
33,992
Separate account liabilities
93,483
92,611
Customer deposits
17,619
17,641
Short-term borrowings
200
200
Long-term debt
2,834
2,831
Debt of consolidated investment
entities
2,671
1,913
Accounts payable and accrued expenses
1,832
1,998
Other liabilities
8,638
8,737
Other liabilities of consolidated
investment entities
256
93
Total Liabilities
160,235
160,016
Equity
Ameriprise Financial
Common shares ($.01 par)
3
3
Additional paid-in capital
8,982
8,822
Retained earnings
15,600
15,292
Treasury stock
(19,400
)
(18,879
)
Accumulated other comprehensive income,
net of tax
317
629
Total Equity
5,502
5,867
Total Liabilities and Equity
$
165,737
$
165,883
Ameriprise Financial,
Inc.
Disclosed Items - Included in
Adjusted Operating Earnings
(in millions, unaudited)
1 Qtr 2021
Corporate
Gain on Investment (1)
Revenues
Management and financial advice fees
$
—
Distribution fees
—
Net investment income
15
Premiums, policy and contract charges
—
Other revenues
—
Total revenues
15
Banking and deposit interest expense
—
Adjusted operating total net
revenues
15
Expenses
Distribution expenses
—
Interest credited to fixed accounts
—
Benefits, claims, losses and settlement
expenses
—
Amortization of deferred acquisition
costs
—
Interest and debt expense
—
General and administrative expense
—
Adjusted operating expenses
—
Pretax adjusted operating earnings
(loss)
$
15
(1) Gain on strategic investment.
Ameriprise Financial,
Inc.
Reconciliation Table:
Earnings
Quarter Ended March
31,
Per Diluted Share Quarter
Ended March 31,
% Over/ (Under)
(in millions, except per share amounts,
unaudited)
2021
2020
2021
2020
Net income
$
437
$
2,036
$
3.58
$
15.88
(77)%
Less: Net realized investment gains
(losses) (1)
55
(20
)
0.45
(0.16
)
Add: Market impact on non-traditional
long-duration products (1)
396
(1,783
)
3.24
(13.91
)
Add: Mean reversion-related impacts
(1)
(56
)
61
(0.46
)
0.47
Add: Market impact of hedges on
investments (1)
—
—
—
—
Add: Integration/restructuring charges
(1)
—
1
—
0.01
Less: Net income (loss) attributable to
consolidated investment entities
(1
)
(2
)
(0.01
)
(0.02
)
Add: Tax effect of adjustments (2)
(60
)
357
(0.49
)
2.78
Adjusted operating earnings
$
663
$
694
$
5.43
$
5.41
-
Less: NOL tax benefit
—
144
—
1.12
Adjusted operating earnings excluding
NOL tax benefit
$
663
$
550
$
5.43
$
4.29
27%
Weighted average common shares
outstanding:
Basic
119.8
126.4
Diluted
122.2
128.2
(1) Pretax adjusted operating
adjustment.
(2) Calculated using the statutory tax
rate of 21%.
Ameriprise Financial,
Inc.
Reconciliation Table: Pretax
Adjusted Operating Earnings and Pretax Adjusted Operating
Margin
Quarter Ended March
31,
(in millions, unaudited)
2021
2020
Total net revenues
$
3,350
$
3,001
Less: Net realized investment gains
(losses)
57
(20
)
Less: Market impact on non-traditional
long-duration products
5
55
Less: Mean Reversion related impacts
—
(1
)
Less: Market impact of hedges on
investments
—
—
Less: Integration/restructuring
charges
—
—
Less: CIEs revenue
34
16
Adjusted operating total net
revenues
$
3,254
$
2,951
Total expenses
$
2,857
$
650
Less: CIEs expenses
35
18
Less: Integration/restructuring
charges
—
1
Less: Market impact on non-traditional
long-duration products
401
(1,728
)
Less: Mean reversion-related impacts
(56
)
60
Less: DAC/DSIC offset to net realized
investment gains (losses)
2
—
Adjusted operating expenses
$
2,475
$
2,299
Pretax income
$
493
$
2,351
Pretax adjusted operating earnings
$
779
$
652
Pretax income margin
14.7
%
78.3
%
Pretax adjusted operating margin
23.9
%
22.1
%
Ameriprise Financial,
Inc.
Reconciliation Table: General
and Administrative Expense
Quarter Ended March
31,
% Over/ (Under)
(in millions, unaudited)
2021
2020
General and administrative expense
$
823
$
753
(9)%
Less: CIEs expenses
19
1
Less: Integration/restructuring
charges
—
1
Adjusted operating general and
administrative expense
$
804
$
751
(7)%
Less: Share-based compensation
17
(17
)
Adjusted operating general and
administrative expense excluding share-based compensation
$
787
$
768
(2)%
Ameriprise Financial,
Inc.
Reconciliation Table:
Effective Tax Rate
Quarter Ended March 31,
2020
(in millions, unaudited)
GAAP
Adjusted Operating
Pretax income
$
2,351
$
652
Income tax provision
$
315
$
(42
)
Effective tax rate
13.4
%
(6.4
)
%
Ameriprise Financial,
Inc.
Reconciliation Table:
Effective Tax Rate
Quarter Ended March 31,
2021
(in millions, unaudited)
GAAP
Adjusted Operating
Pretax income
$
493
$
779
Income tax provision
$
56
$
116
Effective tax rate
11.3
%
14.9
%
Ameriprise Financial,
Inc.
Reconciliation Table:
Operating Revenues and Earnings
Quarter Ended March
31,
% Over/ (Under)
(in millions, unaudited)
2021
2020
Ameriprise Financial, Inc. Net
revenues
$
3,254
$
2,951
10%
Less: Short-Term interest rate impact
—
78
Ameriprise Financial, Inc. Net revenues
excluding Short-Term interest rate impact
$
3,254
$
2,873
13%
Ameriprise Financial, Inc. Pretax
operating earnings
$
779
$
652
19%
Less: Short-Term interest rate impact
—
78
Ameriprise Financial, Inc. Pretax
operating earnings excluding Short-Term interest rate
impact
$
779
$
574
36%
AWM Net revenues
$
1,879
$
1,695
11%
Less: Short-Term interest rate impact
—
78
AWM Net revenues excluding Short-Term
interest rate impact
$
1,879
$
1,617
16%
AWM Pretax operating earnings
$
389
$
378
3%
Less: Short-Term interest rate impact
—
78
AWM Pretax operating earnings excluding
Short-Term interest rate impact
$
389
$
300
30%
Pretax Adjusted operating margin
excluding Short-Term Interest rate impact
20.7
%
18.6
%
Ameriprise Financial,
Inc.
Reconciliation Table: Advice
& Wealth Management Adjusted Revenue Per Advisor
(unaudited)
2Q 2019
3Q 2019
4Q 2019
1Q 2020
2Q 2020
3Q 2020
4Q 2020
1Q 2021
% Over/ (Under)
Total Net Revenue ($ in M)
$
1,653
$
1,682
$
1,710
$
1,695
$
1,537
$
1,667
$
1,776
$
1,879
Interest Revenue ($ in M)
$
(122
)
$
(116
)
$
(92
)
$
(78
)
$
—
$
—
$
—
$
—
Advisor Count
9,951
9,930
9,871
9,878
9,894
9,905
9,922
10,031
Revenue Per Advisor ($ in K)
$
166
$
169
$
173
$
172
$
155
$
168
$
179
$
187
9%
Revenue Per Advisor excluding short-term
interest rate impact ($ in K)
$
154
$
158
$
164
$
164
$
155
$
168
$
179
$
187
14%
Revenue Per Advisor TTM ($ in K)
$
680
$
689
1%
Revenue Per Advisor excluding short-term
interest rate impact TTM ($ in K)
$
640
$
689
8%
Ameriprise Financial,
Inc.
Reconciliation Table: Return
on Equity (ROE) Excluding Accumulated Other Comprehensive Income
“AOCI”
Twelve Months Ended March
31,
(in millions, unaudited)
2021
2020
Net income
$
(65
)
$
3,534
Less: Adjustments (1)
(1,804
)
1,175
Adjusted operating earnings
$
1,739
$
2,359
Total Ameriprise Financial, Inc.
shareholders’ equity
$
6,126
$
6,058
Less: Accumulated other comprehensive
income, net of tax
312
121
Total Ameriprise Financial, Inc.
shareholders’ equity excluding AOCI
5,814
5,937
Less: Equity impacts attributable to the
consolidated investment entities
1
1
Adjusted operating equity
$
5,813
$
5,936
Return on equity excluding AOCI
(1.1
)
%
59.5
%
Adjusted operating return on equity
excluding AOCI (2)
29.9
%
39.7
%
(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%.
(2) Adjusted operating return on equity
excluding accumulated other comprehensive income (AOCI) is
calculated using the trailing twelve months of earnings excluding
the after-tax net realized investment gains/losses, net of DSIC and
DAC amortization, unearned revenue amortization and the reinsurance
accrual; the market impact on non-traditional long-duration
products, net of hedges and related DAC amortization, unearned
revenue amortization, and the reinsurance accrual; mean reversion
related impacts; 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%.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210426005821/en/
Investor Relations: Alicia A. Charity Ameriprise Financial (612)
671-2080 alicia.a.charity@ampf.com Stephanie M. Rabe
Ameriprise Financial (612) 671-4085 stephanie.m.rabe@ampf.com
Media Relations: Paul W. Johnson Ameriprise Financial (612)
671-0625 paul.w.johnson@ampf.com
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