First quarter 2015 net income(1) per diluted
share was $2.08, operating EPS up 7 percent to $2.18
First quarter 2015 return on equity excluding
AOCI was 21.5 percentOperating ROE excluding AOCI increased 230 bps
to a record high 23.1 percent
Company raises regular quarterly dividend 16
percent to $0.67 per share
Ameriprise Financial, Inc. (NYSE: AMP) today reported first
quarter 2015 net income(1) of $393 million, or $2.08 per diluted
share. Operating earnings were $412 million, up 1 percent from a
year ago, with operating earnings per diluted share increasing 7
percent to $2.18. First quarter 2015 results included an $0.11 per
diluted share unfavorable impact of a long term care reserve
increase.
Operating net revenues increased 3 percent to $2.9 billion as
business growth was partially offset by the negative impact of
foreign exchange, a decline in net investment income and lower
activity due to market volatility.
Operating expenses increased 3 percent to $2.3 billion,
primarily driven by a $32 million long term care reserve increase
in the current quarter and a $29 million reserve reduction in the
year ago quarter from policyholder behavior related to a product
change. Without these items, operating expenses were essentially
flat. General and administrative expenses decreased 1 percent
compared to a year ago reflecting the company’s ongoing expense
discipline.
In the quarter, the company returned $459 million to
shareholders through share repurchases and dividends.
“Ameriprise continues to deliver good performance with our
Advice & Wealth Management and Asset Management businesses
generating 64 percent of operating earnings in the quarter,” said
Jim Cracchiolo, chairman and chief executive officer. “Retail
client asset growth was strong from net inflows, new client
acquisition and experienced advisor recruiting. And while the
operating environment was more challenging in the quarter with
increased equity market volatility and continued low interest
rates, we’re executing our strategy and remain focused on serving
our clients and advisors.”
“With our business growth and strong capital position, we
continue to return capital to shareholders through share
repurchases and dividends, including raising our regular quarterly
dividend 16 percent – the eighth increase over the past six
years.”
(1) Net income represents net income from continuing operations
attributable to Ameriprise Financial.
Ameriprise Financial, Inc.
First Quarter Summary
(in millions, except per share amounts, unaudited)
Quarter EndedMarch 31,
% Better/(Worse)
Per Diluted ShareQuarter
EndedMarch 31,
% Better/(Worse)
2015 2014 2015 2014
Net income from continuing operations attributable to Ameriprise
Financial $ 393 $ 401 (2 )% $ 2.08 $ 2.01 3 %
Adjustments, net of tax
(1) (see reconciliation on p. 11)
19 6 0.10 0.03 Operating earnings (2) $
412 $ 407 1 % $ 2.18 $ 2.04 7 % Weighted average common
shares outstanding: Basic 186.3 195.5 Diluted 189.1 199.1
(1) After-tax is calculated using the statutory tax rate of 35%.
(2) The company believes the presentation of operating
earnings best represents the economics of the business. Operating
earnings, after-tax, exclude the consolidation of certain
investment entities; net realized gains or losses; integration and
restructuring charges; the market impact on variable annuity
guaranteed benefits net of hedges and related deferred acquisition
costs (DAC) and deferred sales inducement costs (DSIC)
amortization; the market impact on indexed universal life benefits,
net of hedges and related DAC amortization, unearned revenue
amortization, and the reinsurance accrual; and income or loss from
discontinued operations.
Results in the quarter reflected $0.13 per diluted share of
unfavorable items – a reserve increase of $0.11 per share related
to our closed block of long term care insurance and a net $0.02 per
share unfavorable impact from other items discussed in the segment
commentaries.
In addition, the market impact on DAC and DSIC was a $0.04 per
diluted share benefit compared to a $0.03 per diluted share benefit
a year ago.
Taxes
The first quarter 2015 operating effective tax rate was 26.7
percent compared to 25.2 percent a year ago. The company estimates
that its full year 2015 operating effective tax rate will be in the
26 to 28 percent range.
First Quarter 2015 Business Highlights
- Total assets under management and
administration grew 4 percent from a year ago to $815 billion
driven by Ameriprise advisor client net inflows and market
appreciation, partially offset by an unfavorable foreign exchange
impact of more than $17 billion.
- Advice & Wealth Management
experienced continued strong growth in client assets and flows with
advisor client assets up 8 percent to $453 billion and wrap assets
increasing 13 percent to $180 billion. Wrap net inflows in the
quarter were strong at $2.8 billion.
- Advisor productivity continues to
improve. On a trailing 12-month basis, operating net revenue per
advisor grew 11 percent to a record $505,000.
- Experienced advisor recruiting was
strong in the quarter, with 77 experienced advisors moving their
practices to Ameriprise.
- Asset Management segment AUM increased
slightly to $506 billion driven by market appreciation, partially
offset by net outflows and an unfavorable year-over-year impact of
more than $17 billion from foreign exchange. For the quarter, net
outflows were $5.8 billion.
- The company has 120 four- and five-star
rated funds at Columbia Threadneedle Investments.
- On March 30, the company launched the
Columbia Threadneedle Investments brand representing the combined
capabilities, resources and reach of Columbia Management and
Threadneedle Investments.
- The company continued to build out its
multi-asset solutions business, launching the Columbia Adaptive
Alternatives Fund, a liquid alternatives fund that provides retail
investors access to a diverse portfolio of alternative
investments.
- Variable annuity policyholder account
balances grew 3 percent to $78 billion and included $1.2 billion in
new sales – 32 percent of sales in the quarter did not include
living benefits, up from 25 percent a year ago.
- Variable Universal Life / Universal
Life insurance account balances increased 4 percent to $11
billion.
- Combined, Advice & Wealth
Management and Asset Management generated 64 percent of company
pretax operating earnings(1), up from 61 percent a year ago.
- The company increased its regular
quarterly dividend 16 percent to $0.67 per share payable on May 15,
2015 to shareholders of record as of May 4, 2015.
- Excess capital was approximately $2.5
billion after the company repurchased 2.6 million shares of common
stock in the quarter for $349 million and paid $110 million in
quarterly dividends. The company also holds $250 million of
additional capital above required levels, primarily for variable
annuity products.
(1) Excludes Corporate & Other segment
Ameriprise Financial, Inc. Advice & Wealth
Management Segment Operating Results (in millions,
unaudited)
Quarter Ended March 31,
% Better/(Worse)
2015 2014 Advice & Wealth
Management Net revenues $ 1,228 $ 1,149 7 % Expenses
1,018 968 (5 ) Pretax operating earnings $ 210
$ 181 16 Pretax operating margin 17.1 % 15.8 %
Quarter Ended March 31,
% Better/(Worse)
2015 2014 Retail client assets (billions) $ 453 $ 418
8 % Mutual fund wrap net flows (billions) $ 2.8 $ 4.2 (33 )%
Operating net revenue per branded advisor (trailing 12 months -
thousands) $ 505 $ 454 11 %
Advice & Wealth Management pretax operating earnings
increased 16 percent to $210 million reflecting strong revenue
growth and expense controls. First quarter 2015 pretax operating
margin reached a record high of 17.1 percent compared to 15.8
percent a year ago. On a sequential basis, first quarter 2015
results reflected two fewer fee days.
Operating net revenues grew 7 percent to $1.2 billion driven by
asset growth in fee-based accounts from client net inflows and
market appreciation, partially offset by lower activity reflecting
increased market volatility.
Operating expenses increased 5 percent to $1 billion as business
growth resulted in higher distribution expenses. General and
administrative expenses were flat compared to a year ago.
Total retail client assets grew 8 percent to $453 billion driven
by client net inflows, new client acquisition and market
appreciation. Wrap net inflows remained strong at $2.8 billion with
wrap balances increasing 13 percent to $180 billion. The
combination of asset growth and client activity drove an 11 percent
increase in operating net revenue per advisor on a trailing
12-month basis.
Ameriprise Financial, Inc. Asset Management
Segment Operating Results (in millions, unaudited)
Quarter Ended March 31,
% Better/(Worse)
2015 2014 Asset Management Net revenues
$ 807 $ 807 — Expenses 616 624 1 %
Pretax operating earnings $ 191 $ 183 4
Adjusted net pretax operating margin 39.7 % 39.0 %
Quarter Ended March 31,
% Better/(Worse)
2015 2014 Total segment AUM(1) (billions) $ 506 $ 504
— Columbia Management AUM $ 364 $ 358 2 % Threadneedle AUM $ 147 $
149 (1 )% Total segment net flows (billions) $ (5.8 ) $ (3.9
) (49 )% Retail net flows $ (3.0 ) $ (3.4 ) 11 % Institutional net
flows $ (2.8 ) $ (0.8 ) NM Alternative net flows $ — $ 0.3 NM
(1) Subadvisory eliminations between
Columbia Management and Threadneedle are included in the company’s
First Quarter 2015 Statistical Supplement available at
ir.ameriprise.com
NM Not Meaningful — variance of greater than 100%
Asset Management pretax operating earnings increased 4
percent to $191 million driven by market appreciation and continued
expense management, partially offset by net outflows, the negative
impact of foreign exchange and costs associated with the move to a
new London office.
First quarter adjusted net pretax operating margin remained
strong at 39.7 percent compared to 39.0 percent a year ago.
Operating net revenues were flat at $807 million as asset growth
from market appreciation was offset by net outflows and the
negative impact of foreign exchange.
Operating expenses decreased 1 percent to $616 million
reflecting well-controlled general and administrative expenses and
lower distribution expenses.
AUM grew slightly to $506 billion as market appreciation more
than offset the impact of net outflows and a more than $17 billion
unfavorable impact from foreign exchange. For the quarter, net
outflows were $5.8 billion reflecting elevated outflows in the
Columbia Acorn Fund, continued outflows from former parent company
affiliated distribution, and low basis point fee institutional and
insurance mandates. Initiatives to improve U.S. retail intermediary
flows are gaining traction, including initiatives to increase
wholesaler productivity and earn greater share with key clients and
platforms. Retail net inflows of $0.5 billion at Threadneedle
included increased flows into Asian equity products. Net outflows
in third party institutional reflected the timing of certain large
mandate fundings, which are now expected to fund in the second
quarter.
Ameriprise Financial, Inc. Annuities Segment
Operating Results (in millions, unaudited)
Quarter Ended March 31,
% Better/(Worse)
2015 2014 Annuities Net revenues $ 631
$ 636 (1 )% Expenses 459 460 — Pretax
operating earnings $ 172 $ 176 (2 ) Variable
annuity pretax operating earnings $ 144 $ 145 (1 )% Fixed annuity
pretax operating earnings 28 31 (10 )
Total pretax operating earnings $ 172 $ 176 (2 )
Items included in operating earnings: Market impact on DAC
and DSIC (mean reversion) $ 10 $ 8 25 % Impact of variable annuity
product changes 2 29 (93 )% Total
annuities impact $ 12 $ 37 (68 )%
Quarter
Ended March 31,
% Better/(Worse)
2015 2014 Variable annuity ending account balances
(billions) $ 77.9 $ 75.9 3 % Variable annuity net flows
(millions) $ (385 ) $ (400 ) 4 % Fixed annuity ending account
balances (billions) $ 11.7 $ 12.9 (10 )% Fixed annuity net flows
(millions) $ (565 ) $ (415 ) (36 )%
Annuities pretax operating earnings were $172 million
compared to $176 million a year ago, as the year ago period
included a $37 million benefit from the market impact on DAC and
DSIC and from policyholder behavior related to a variable annuity
product change.
Variable annuity operating earnings were $144 million in the
quarter reflecting $25 million of lower benefits from policyholder
behavior related to a product change in the year ago period and the
market impact on DAC and DSIC. Account balances grew 3 percent to
$78 billion driven by market appreciation, partially offset by net
outflows. Variable annuity cash sales were $1.2 billion for the
quarter.
Fixed annuity operating earnings decreased to $28 million
primarily driven by the cumulative decline in account balances,
partially offset by higher spreads due to lower crediting rates.
Fixed annuity account balances decreased 10 percent given limited
new sales from low rates and lapse rates consistent with the
company’s expectations.
Ameriprise Financial, Inc. Protection Segment
Operating Results (in millions, unaudited)
Quarter Ended March 31,
% Better/(Worse)
2015 2014 Protection Net revenues $ 590
$ 555 6 % Expenses 539 496 (9 ) Pretax
operating earnings $ 51 $ 59 (14 ) Items
included in operating earnings: Market impact on DAC (mean
reversion) $ 1 $ — NM Long term care reserves (32 ) — NM Auto and
home reserves
— (30 ) NM Disability insurance discount rate
change 7 — NM Total auto and home weather-related losses(1)
(12 ) (20 ) 40 % Total protection impact $ (36 ) $ (50 ) 28
%
Quarter Ended March 31,
% Better/(Worse)
2015 2014 Life insurance in force (billions) $ 196 $
194 1 % VUL/UL ending account balances (billions) $ 11.4 $ 11.0 4 %
Auto & Home policies in force (thousands) 943 861 10 %
(1) Q1 2015 includes $4 million related to
2014 catastrophe losses
NM Not Meaningful — variance of greater than 100%
Protection pretax operating earnings were $51 million
compared to $59 million a year ago. Included in the current
quarter’s results were a $32 million long term care reserve
increase, a loss ratio assumption at Auto and Home that was
consistent with the run rate for the fourth quarter of 2014, and a
$7 million favorable impact from a change in the discount rate for
disability insurance products.
Life and Health insurance earnings, excluding unusual items,
were solid and included elevated claims experience that was within
normal quarterly claims fluctuations. VUL/UL account balances grew
4 percent primarily from market appreciation. VUL/UL cash sales
were $66 million, down 15 percent.
As anticipated, the company obtained additional information from
its long term care reinsurance provider during the quarter
regarding benefit utilization and claim terminations. The new
information, along with a review of the discount rate, resulted in
a revised management best estimate for long term care claims
reserves. The impact was a $32 million increase in the claims
reserves. The company has exercised its contractual right to engage
an outside actuarial firm to conduct additional analysis of claims
experience that is expected to be completed in the second
quarter.
Auto and Home had a modest operating loss in the quarter
compared to a significant loss a year ago. The improved results
reflected lower weather-related losses and increased reserves a
year ago, partially offset by higher 2015 accident year loss ratio
assumptions consistent with the fourth quarter 2014 accident year
level. The company continues to make improvements in underwriting,
operational and claims processes, and pricing actions to improve
performance. These actions are expected to have an incremental
impact on financial results in 2015 and a more substantial
financial benefit in 2016.
Ameriprise Financial, Inc. Corporate & Other
Segment Operating Results (in millions, unaudited)
Quarter Ended March 31,
% Better/(Worse)
2015 2014 Corporate & Other Net
revenues $ (6 ) $ 6 NM Expenses 56 61 8
% Pretax operating loss $ (62 ) $ (55 ) (13 ) NM Not
Meaningful — variance of greater than 100%
Corporate & Other pretax operating loss was $62
million for the quarter compared to a $55 million loss a year
ago.
At Ameriprise Financial, we have been helping people feel
confident about their financial future for more than 120 years.
With a nationwide network of 10,000 financial advisors and
extensive asset management, advisory and insurance capabilities, we
have the strength and expertise to serve the full range of
individual and institutional investors’ financial needs. For more
information, visit ameriprise.com.
Ameriprise Financial Services, Inc. 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. Auto and home
insurance is underwritten by IDS Property Casualty Insurance
Company, or in certain states, Ameriprise Insurance Company, both
in De Pere, WI. 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.
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:
- the statement in this news release that
the company expects its full-year 2015 operating effective tax rate
to be in the 26 to 28 percent range;
- the statement in this news release
concerning anticipated funding of mandates in the second quarter
for Columbia Threadneedle Investments;
- the statements in this news release
concerning anticipated completion of actuarial analysis on long
term care claim experience in the second quarter;
- the statements in this news release
concerning the expected impact, and time during which impacts might
be realized, as a result of actions taken in the company’s Auto and
Home business;
- statements of the company’s plans,
intentions, positioning, expectations, objectives or goals,
including those relating to asset flows, mass affluent and affluent
client acquisition strategy, client retention and growth of our
client base, financial advisor productivity, retention, recruiting
and enrollments, the introduction, cessation, terms or pricing of
new or existing products and services, acquisition integration,
general and administrative costs, consolidated tax rate, return of
capital to shareholders, and excess capital position and financial
flexibility to capture additional growth opportunities;
- other statements about future economic
performance, the performance of equity markets and interest rate
variations and the economic performance of the United States and of
global markets; and
- statements of assumptions underlying
such statements.
The words “believe,” “expect,” “anticipate,” “optimistic,”
“intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,”
“likely,” “forecast,” “on pace,” “project” 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.
Such factors include, but are not limited to:
- conditions in the interest rate, credit
default, equity market and foreign exchange environments, including
changes in valuations, liquidity and volatility;
- changes in and the adoption of relevant
accounting standards and securities rating agency standards and
processes, as well as changes in the litigation and regulatory
environment, including ongoing legal proceedings and regulatory
actions, the frequency and extent of legal claims threatened or
initiated by clients, other persons and regulators, and
developments in regulation and legislation, including the rules,
exemptions and regulations implemented or that may be implemented
in connection with the Dodd-Frank Wall Street Reform and Consumer
Protection Act or in light of the U.S. Department of Labor pending
rule and exemptions pertaining to the fiduciary status of
investment advice providers to 401(k) plan, plan sponsors, plan
participants and the holders of individual retirement or health
savings accounts;
- investment management performance and
distribution partner and consumer acceptance of the company’s
products;
- effects of competition in the financial
services industry, including pricing pressure, the introduction of
new products and services and changes in product distribution mix
and distribution channels;
- changes to the company’s reputation
that may arise from employee or advisor misconduct, legal or
regulatory actions, perceptions of the financial services industry
generally, improper management of conflicts of interest or
otherwise;
- the company’s capital structure,
including indebtedness, limitations on subsidiaries to pay
dividends, and the extent, manner, terms and timing of any share or
debt repurchases management may effect as well as the opinions of
rating agencies and other analysts and the reactions of market
participants or the company’s regulators, advisors, distribution
partners or customers in response to any change or prospect of
change in any such opinion;
- changes to the availability and cost of
liquidity and the Company’s credit capacity that may arise due to
shifts in market conditions, the Company’s credit ratings and the
overall availability of credit;
- risks of default, capacity constraint
or repricing by issuers or guarantors of investments the company
owns or by counterparties to hedge, derivative, insurance or
reinsurance arrangements or by manufacturers of products the
company distributes, experience deviations from the company’s
assumptions regarding such risks, the evaluations or the prospect
of changes in evaluations of any such third parties published by
rating agencies or other analysts, and the reactions of other
market participants or the company’s regulators, advisors,
distribution partners or customers in response to any such
evaluation or prospect of changes in evaluation;
- experience deviations from the
company’s assumptions regarding morbidity, mortality and
persistency in certain annuity and insurance products, or from
assumptions regarding market returns assumed in valuing or
unlocking DAC and DSIC or market volatility underlying our
valuation and hedging of guaranteed living benefit annuity riders,
or from assumptions regarding interest rates assumed in our loss
recognition testing of our Long Term Care business, or from
assumptions regarding anticipated claims and losses relating to our
automobile and home insurance products;
- changes in capital requirements that
may be indicated, required or advised by regulators or rating
agencies;
- the impacts of the company’s efforts to
improve distribution economics and to grow third-party distribution
of its products;
- the ability to pursue and complete
strategic transactions and initiatives, including acquisitions,
divestitures, restructurings, joint ventures and the development of
new products and services;
- the ability to realize the financial,
operating and business fundamental benefits of strategic
transactions and initiatives the company has completed, is pursuing
or may pursue in the future, which may be impacted by the ability
to obtain regulatory approvals, the ability to effectively manage
related expenses and by market, business partner and consumer
reactions to such strategic transactions and initiatives;
- the ability and timing to realize
savings and other benefits from re-engineering and tax
planning;
- interruptions or other failures in our
communications, technology and other operating systems, including
errors or failures caused by third party service providers,
interference or failures caused by third party attacks on our
systems, or the failure to safeguard the privacy or confidentiality
of sensitive information and data on such systems; and
- general economic and political factors,
including consumer confidence in the economy and the financial
industry, the ability and inclination of consumers generally to
invest as well as their ability and inclination to invest in
financial instruments and products other than cash and cash
equivalents, the costs of products and services the company
consumes in the conduct of its business, and applicable legislation
and regulation and changes therein, including tax laws, tax
treaties, fiscal and central government treasury policy, and
policies regarding the financial services industry and publicly
held firms, and regulatory rulings and pronouncements.
Management cautions the reader that the foregoing list of
factors is not exhaustive. There may also be other risks that
management is unable to predict at this time that may cause actual
results to differ materially from those in forward-looking
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 undertakes no obligation to
update publicly or revise any forward-looking statements. The
foregoing list of factors should be read in conjunction with 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, 2014
available at ir.ameriprise.com.
The financial results discussed in this news release represent
past performance only, which may not be used to predict or project
future results. The financial results and values presented in this
news release and the below-referenced Statistical Supplement are
based upon asset valuations that represent estimates as of the date
of this news release and may be revised in the company’s Quarterly
Report on Form 10-Q for the quarter ended March 31, 2015. For
information about Ameriprise Financial entities, please refer to
the First Quarter 2015 Statistical Supplement available at
ir.ameriprise.com and the tables that follow in this news
release.
Ameriprise Financial announces financial and other information
to investors through the company’s investor relations website at
ir.ameriprise.com, as well as SEC filings, press releases, public
conference calls and webcasts. Investors and others interested in
the company are encouraged to visit the investor relations website
from time to time, as information is updated and new information is
posted. The website also allows users to sign up for automatic
notifications in the event new materials are posted. The
information found on the website is not incorporated by reference
into this release or in any other report or document the company
furnishes or files with the SEC.
Ameriprise Financial, Inc. Reconciliation Table:
Earnings
Quarter EndedMarch 31,
Per Diluted ShareQuarter
EndedMarch 31,
(in millions, except per share amounts, unaudited)
2015
2014 2015 2014 Net income
attributable to Ameriprise Financial $ 393 $ 400 $ 2.08 $ 2.01
Less: Loss from discontinued operations, net of tax —
(1 ) — —
Net income from continuing
operations attributable to Ameriprise Financial
393 401 2.08 2.01
Add: Market impact on variable
annuity guaranteed benefits, net of tax(1)
22 10 0.12 0.05
Add: Market impact on indexed universal
life benefits, net of tax(1)
4 (1 ) 0.02 — Add: Net realized (gains) losses, net of tax(1)
(7 ) (3 ) (0.04 ) (0.02 ) Operating
earnings $ 412 $ 407 $ 2.18 $ 2.04
Weighted average common shares outstanding: Basic 186.3 195.5
Diluted 189.1 199.1
(1) Calculated using the statutory tax
rate of 35%.
Ameriprise Financial, Inc. Reconciliation
Table: Total Net Revenues Quarter Ended
March 31, (in millions, unaudited)
2015
2014 Total net revenues $ 3,053 $ 2,996 Less: CIEs revenue
149 177 Less: Net realized gains (losses) 10 5 Less: Market impact
on indexed universal life benefits (4 ) 2 Operating
total net revenues $ 2,898 $ 2,812
Ameriprise Financial, Inc. Reconciliation Table: Total
Expenses Quarter Ended March 31, (in
millions, unaudited)
2015 2014 Total expenses $ 2,435
$ 2,346 Less: CIEs expenses 63 62 Less: Market impact on variable
annuity guaranteed benefits 34 15 Less: Market impact on indexed
universal life benefits 2 1 Operating expenses
$ 2,336 $ 2,268
Ameriprise Financial,
Inc. Reconciliation Table: Pretax Operating Earnings
Quarter Ended March 31, (in millions,
unaudited)
2015 2014 Operating total net revenues $
2,898 $ 2,812 Operating expenses 2,336 2,268
Pretax operating earnings $ 562 $ 544
Ameriprise Financial, Inc. Reconciliation Table: General
and Administrative Expense Quarter Ended March
31, (in millions, unaudited)
2015 2014 General
and administrative expense $ 752 $ 758 Less: CIEs expenses
10 12 Operating general and administrative expense $
742 $ 746
Ameriprise Financial, Inc.
Reconciliation Table: Effective Tax Rate
Quarter Ended March 31, 2015 (in millions, unaudited)
GAAP Operating Income from continuing
operations before income tax provision $ 618 $ 562 Less: Pretax
income attributable to noncontrolling interests 86
— Income from continuing operations before income tax
provision excluding consolidated investment entities $ 532 $
562 Income tax provision from continuing operations $ 139 $
150 Effective tax rate 22.5 % 26.7 % Effective tax rate excluding
noncontrolling interests 26.1 % 26.7 %
Ameriprise
Financial, Inc. Reconciliation Table: Effective Tax Rate
Quarter Ended March 31, 2014 (in millions, unaudited)
GAAP Operating Income from continuing operations
before income tax provision $ 650 $ 544 Less: Pretax income
attributable to noncontrolling interests 115 —
Income from continuing operations before
income tax provision excluding consolidated investment entities
$ 535 $ 544 Income tax provision from continuing
operations $ 134 $ 137 Effective tax rate 20.7 % 25.2 % Effective
tax rate excluding noncontrolling interests 25.1 % 25.2 %
Ameriprise Financial, Inc. Reconciliation Table:
Asset Management Adjusted Net Pretax Operating Margin
Quarter Ended March 31,
(in millions, unaudited)
2015 2014 Operating total net revenues
$
807 $ 807 Less: Distribution pass through revenues 218 228 Less:
Subadvisory and other pass through revenues 103
97 Adjusted operating revenues $ 486 $ 482
Pretax operating earnings $ 191 $ 183 Less: Operating
net investment income 6 4 Add: Amortization of intangibles 8
9 Adjusted operating earnings $ 193 $
188 Adjusted net pretax operating margin 39.7 % 39.0
%
Ameriprise Financial,
Inc.Reconciliation Table: Return on Equity (ROE) Excluding
Accumulated Other Comprehensive Income “AOCI”
Twelve Months EndedMarch
31,
(in millions, unaudited)
2015 2014 Net income attributable to
Ameriprise Financial $ 1,612 $ 1,399 Less: Loss from discontinued
operations, net of tax (1 ) (3 )
Net income from continuing operations
attributable to Ameriprise Financial, as reported
1,613 1,402
Less: Adjustments (1)
(54 ) (127 ) Operating earnings $ 1,667 $
1,529 Total Ameriprise Financial, Inc. shareholders’
equity $ 8,270 $ 8,432 Less: Accumulated other comprehensive
income, net of tax 755 731 Total
Ameriprise Financial, Inc. shareholders’ equity excluding AOCI
7,515 7,701 Less: Equity impacts attributable to the consolidated
investment entities 300 337 Operating
equity $ 7,215 $ 7,364 Return on equity
excluding AOCI 21.5 % 18.2 %
Operating return on equity excluding AOCI
(2)
23.1 % 20.8 %
(1) Adjustments reflect the trailing
twelve months’ sum of after-tax net realized gains/losses; market
impact on variable annuity guaranteed benefits, net of hedges and
related DSIC and DAC amortization; the market impact on indexed
universal life benefits, net of hedges and related DAC
amortization, unearned revenue amortization, and the reinsurance
accrual; and integration/restructuring charges. After-tax is
calculated using the statutory tax rate of 35%.
(2) 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 gains/losses; market impact on variable annuity guaranteed
benefits, net of hedges and related DSIC and DAC amortization; the
market impact on indexed universal life benefits, net of hedges and
related DAC amortization, unearned revenue amortization, and the
reinsurance accrual; integration/restructuring charges; 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 35%
Ameriprise Financial, Inc.
Consolidated GAAP Results
(in millions, unaudited)
Quarter Ended March 31,
% Better/(Worse)
2015 2014 Revenues Management and
financial advice fees $ 1,468 $ 1,386 6 % Distribution fees 466 476
(2 ) Net investment income 484 471 3 Premiums 353 330 7 Other
revenues 289 340 (15 ) Total revenues 3,060 3,003 2
Banking and deposit interest expense 7 7 —
Total
net revenues 3,053 2,996 2
Expenses Distribution
expenses 819 786 (4 ) Interest credited to fixed accounts 172 186 8
Benefits, claims, losses and settlement expenses 533 450 (18 )
Amortization of deferred acquisition costs 75 87 14 Interest and
debt expense 84 79 (6 ) General and administrative expense
752 758 1
Total expenses 2,435 2,346 (4 ) Income from
continuing operations before income tax provision 618 650 (5 )
Income tax provision 139 134 (4 ) Income from
continuing operations 479 516 (7 ) Loss from discontinued
operations, net of tax — (1) NM
Net
income 479 515 (7 ) Less: Net income attributable to
noncontrolling interests 86 115 (25 )
Net
income attributable to Ameriprise Financial $ 393 $ 400 (2 )
NM Not Meaningful — variance of greater than 100%
Ameriprise Financial, Inc.Investor Relations:Alicia A.
Charity, 612-671-2080orChad J. Sanner,
612-671-4676chad.j.sanner@ampf.comorMedia Relations:Paul W.
Johnson, 612-671-0625
Ameriprise Financial (NYSE:AMP)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ameriprise Financial (NYSE:AMP)
Historical Stock Chart
From Apr 2023 to Apr 2024