Form 8-K AMERIPRISE FINANCIAL For: Jan 26
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E-mail | Ameriprise Financial, Inc. Minneapolis, MN NYSE: AMP January 26, 2022 | ||||
Ameriprise Financial Reports
Fourth Quarter 2021 Results
| Earnings Per Diluted Share | Return on Equity, ex AOCI (1) | |||||||||||||
Q4 2021 | Q4 2021 | |||||||||||||
| GAAP | $5.96 | GAAP | 51.2% | |||||||||||
| Adjusted Operating | $6.15 | Adjusted Operating | 50.6% | |||||||||||
•Fourth quarter adjusted operating earnings per diluted share was a record $6.15, up 36 percent from the prior year reflecting strong business growth. Full year adjusted operating earnings per diluted share excluding unlocking increased 35 percent to $22.75. | Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer | |||||||
“Ameriprise delivered another very strong quarter and a record year for client flows, assets and financial results. “This significant organic growth was complemented by strategic actions, including our acquisition of BMO EMEA. In the quarter, we drove more than $40 billion in client net inflows. “Wealth and Asset Management generated 80% of our 2021 adjusted operating earnings, and we continued to deliver consistently strong results in our high-quality insurance and annuity business. This allows us to generate a differentiated level of capital return to shareholders, while investing in the business and maintaining our balance sheet discipline. “Ameriprise is well positioned to continue navigating the current environment successfully, and rising interest rates would be another positive. We remain focused on serving our clients well and are energized about the opportunity before us.” | ||||||||
•Fourth quarter GAAP net income per diluted share was $5.96, versus $1.43 a year ago, from strong business performance and lower market impact on derivatives, with BMO integration costs in the current year period. Full year GAAP net income per diluted share increased 89 percent to $23.00. | ||||||||
•Assets under management and administration increased to a record high of $1.4 trillion. BMO’s EMEA Asset Management business (BMO EMEA) added $136 billion of acquired assets. | ||||||||
•Net flows from Advice & Wealth Management and Asset Management were over $40 billion, including a net $15 billion of BMO-related flows primarily from the U.S. asset transfers in North America mainly in December. | ||||||||
•Adjusted operating net revenue was $3.7 billion, an 18 percent increase from strong organic growth. | ||||||||
•Ameriprise generated strong profitability with pretax adjusted operating earnings up 33 percent to $894 million, driven by 45 percent earnings growth from Wealth and Asset Management. These businesses represented 81 percent of operating earnings in the quarter. | ||||||||
•Investment performance at Columbia Threadneedle Investments remains excellent with 133 funds with 4- and 5-star Morningstar ratings with more than 80% of funds above median on an asset-weighted basis over 3-, 5- and 10-year time periods. | ||||||||
•The company returned $630 million of capital to shareholders in the quarter for a total of $2.4 billion for the full year, which was nearly 90 percent of adjusted operating earnings. | ||||||||
•The company announced a new share repurchase authorization of $3.0 billion through March 31, 2024. | ||||||||
•On November 8, 2021, the company successfully closed the acquisition of BMO EMEA and recognized $18 million of integration expense on a GAAP basis in the quarter. | ||||||||
(1) Return on equity excluding AOCI is calculated on a trailing 12-month basis.
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| 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) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||
| GAAP net income | $ | 701 | $ | 177 | NM | $ | 2,760 | $ | 1,534 | 80% | |||||||||||||||||||||||||
| Adjusted operating earnings | $ | 723 | $ | 559 | 29% | $ | 2,724 | $ | 1,770 | 54% | |||||||||||||||||||||||||
Adjusted operating earnings excluding Q3 unlocking (see reconciliation starting on p. 25) | $ | 723 | $ | 559 | 29% | $ | 2,730 | $ | 2,119 | 29% | |||||||||||||||||||||||||
| GAAP net income per diluted share | $ | 5.96 | $ | 1.43 | NM | $ | 23.00 | $ | 12.20 | 89% | |||||||||||||||||||||||||
| Adjusted operating earnings per diluted share | $ | 6.15 | $ | 4.53 | 36% | $ | 22.70 | $ | 14.08 | 61% | |||||||||||||||||||||||||
Adjusted operating earnings per diluted share excluding Q3 unlocking (see reconciliation starting on p. 25) | $ | 6.15 | $ | 4.53 | 36% | $ | 22.75 | $ | 16.86 | 35% | |||||||||||||||||||||||||
| GAAP Return on Equity, ex. AOCI | 51.2 | % | 26.1 | % | 51.2 | % | 26.1 | % | |||||||||||||||||||||||||||
| Adjusted Operating Return on Equity, ex. AOCI | 50.6 | % | 30.2 | % | 50.6 | % | 30.2 | % | |||||||||||||||||||||||||||
| Adjusted Operating Return on Equity, ex. AOCI and Q3 unlocking | 50.7 | % | 36.1 | % | 50.7 | % | 36.1 | % | |||||||||||||||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||||||||||||||
| Basic | 114.6 | 120.9 | 117.3 | 123.8 | |||||||||||||||||||||||||||||||
| Diluted | 117.6 | 123.4 | 120.0 | 125.7 | |||||||||||||||||||||||||||||||
| NM Not Meaningful - variance equal to or greater than 100% | |||||||||||||||||||||||||||||||||||
Fourth quarter 2021 GAAP results were modestly impacted by the market changes that negatively affected credit spreads and the valuation of derivatives, as well as integration costs from the acquisition of BMO EMEA. The prior year quarter also included significant negative impacts from market changes that affected credit spreads and valuation of derivatives.
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| Ameriprise Financial, Inc. | |||||||||||||||||
| Advice & Wealth Management Segment Adjusted Operating Results | |||||||||||||||||
| Quarter Ended December 31, | % Over/ (Under) | ||||||||||||||||
| (in millions, unaudited) | 2021 | 2020 | |||||||||||||||
| Net revenues | $ | 2,114 | $ | 1,776 | 19% | ||||||||||||
| Distribution expenses | 1,275 | 1,065 | (20)% | ||||||||||||||
| G&A / other expense | 367 | 359 | (2)% | ||||||||||||||
| Pretax adjusted operating earnings | $ | 472 | $ | 352 | 34% | ||||||||||||
| Pretax adjusted operating margin | 22.3 | % | 19.8 | % | 250 bps | ||||||||||||
| Quarter Ended December 31, | % Over/ (Under) | |||||||||||||
| (in billions, unless otherwise noted) | 2021 | 2020 | ||||||||||||
| Total client assets | $ | 858 | $ | 732 | 17% | |||||||||
Total client net flows (1) | $ | 12.5 | $ | 9.7 | 29% | |||||||||
Wrap net flows (1) | $ | 10.5 | $ | 9.0 | 17% | |||||||||
| AWM cash balance | $ | 43.8 | $ | 41.5 | 6% | |||||||||
| Average gross yield on cash balances (in bps) | 62 | 69 | ||||||||||||
| Adjusted operating net revenue per advisor (TTM in thousands) | $ | 796 | $ | 674 | 18% | |||||||||
Adjusted for interest rates (2) | $ | 796 | $ | 666 | 20% | |||||||||
(1) See definition on page 13. | ||||||||||||||
(2) Adjusted for impact from interest rates. See reconciliation on page 28. | ||||||||||||||
Advice & Wealth Management pretax adjusted operating earnings increased 34 percent to a record $472 million driven by robust client net flows, higher transactional activity, market appreciation, increased bank profitability and disciplined expense management. Pretax adjusted operating margin was 22.3 percent, up 250 basis points, which demonstrated our strategic focus on profitable growth.
Adjusted operating net revenues grew 19 percent to $2.1 billion, reflecting strong client net flows and transactional activity levels, as well as market appreciation.
Distribution expenses were up 20 percent associated with robust organic growth. General and administrative expense increased 2 percent, as higher activity-based expense and performance-based compensation were partially offset by expense discipline.
Total client assets grew 17 percent to $858 billion. Substantial organic growth across our advisor network was driven primarily by increased new client acquisition, deeper client relationships from existing clients, as well as experienced advisor recruiting. Total client flows reached a new high of $12.5 billion in the quarter, with a 17 percent increase in wrap flows and an 8 percent increase in transactional activity. Wrap net flows were $10.5 billion, representing the fifth consecutive quarter at or above $9.0 billion. Cash balances increased to $43.8 billion with an 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 $796,000. Excluding the decline in short-term interest rates, adjusted operating net revenue per advisor increased 20 percent. Total advisors increased 2 percent to 10,116, with excellent advisor retention, as well as the addition of 86 experienced advisors in the quarter.
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| Ameriprise Financial, Inc. | |||||||||||||||||
| Asset Management Segment Adjusted Operating Results | |||||||||||||||||
| Quarter Ended December 31, | % Over/ (Under) | ||||||||||||||||
| (in millions, unaudited) | 2021 | 2020 | |||||||||||||||
| Net revenues | $ | 1,060 | $ | 798 | 33% | ||||||||||||
| Distribution expenses | 294 | 254 | (16)% | ||||||||||||||
| G&A / other expenses | 436 | 343 | (27)% | ||||||||||||||
| Pretax adjusted operating earnings | $ | 330 | $ | 201 | 64% | ||||||||||||
Net pretax adjusted operating margin (1) | 45.7 | % | 39.5 | % | |||||||||||||
| Quarter Ended December 31, | % Over/ (Under) | ||||||||||||||||
| (in billions) | 2021 | 2020 | |||||||||||||||
| Total segment AUM | $ | 754 | $ | 547 | 38% | ||||||||||||
| Net Flows | |||||||||||||||||
| Global Retail net flows | $ | 13.6 | $ | 7.8 | 74% | ||||||||||||
| Global Institutional net flows, ex. legacy insurance partners flows | 14.8 | 0.6 | NM | ||||||||||||||
| Legacy insurance partners flows | (0.9) | (1.4) | 32% | ||||||||||||||
| Total segment net flows | $ | 27.5 | $ | 7.0 | NM | ||||||||||||
Model delivery AUA Flows (2) | $ | 0.8 | $ | 0.2 | NM | ||||||||||||
(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 pretax adjusted operating earnings increased 64 percent to $330 million reflecting the cumulative benefit of net inflows, higher performance fees and market appreciation. Net pretax adjusted operating margin was 45.7 percent. The net pretax adjusted operating margin excluding the BMO EMEA acquisition was 48.6 percent.
Adjusted operating revenues grew to $1.1 billion, up 33 percent from strong performance fees, the addition of the recently acquired EMEA Asset Management business from BMO, the cumulative benefit of inflows, as well as higher equity markets. Excluding BMO EMEA, revenue increased 25 percent.
Distribution expense increased 16 percent from strong equity market appreciation. General and administrative expense grew 27 percent driven by the BMO EMEA acquisition and higher performance fee compensation. Excluding BMO EMEA, G&A was well managed and up 12 percent.
Total assets under management increased 38 percent to $754 billion reflecting the acquisition of BMO EMEA, equity market appreciation and net inflows. Long term investment performance remained very strong across equity, fixed income and asset-allocation strategies.
In the quarter, net inflows were $27.5 billion, which included a net $15.0 billion related to BMO. In the U.S., $16.9 billion of inflows were related to clients that elected to transfer retail and institutional assets to us resulting from the transition of investment advisory services as part of an arrangement with BMO. BMO EMEA had $1.9 billion of outflows, of which approximately 40 percent was associated with the acquisition.
•Retail net inflows were $13.6 billion, which included reinvested dividends, $2.6 billion of BMO-related net inflows in the U.S. and EMEA, and $2.4 billion of underlying outflows.
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•Global institutional net inflows were $14.8 billion, which included $14.0 billion of inflows from U.S. BMO asset management clients, BMO EMEA outflows of $1.6 billion, and underlying $2.4 billion of net inflows across multiple strategies and geographies.
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| Ameriprise Financial, Inc. | ||||||||||||||
| Retirement & Protection Solutions Segment Adjusted Operating Results | ||||||||||||||
| Quarter Ended December 31, | % Over/ (Under) | |||||||||||||
| (in millions, unaudited) | 2021 | 2020 | ||||||||||||
| Net revenues | $ | 815 | $ | 799 | 2% | |||||||||
| Expenses | 632 | 619 | (2)% | |||||||||||
| Pretax adjusted operating earnings | $ | 183 | $ | 180 | 2% | |||||||||
Retirement & Protection Solutions pretax adjusted operating earnings were $183 million as market appreciation was largely offset by higher sales expense, net outflows in retirement products and lower portfolio yields. Overall claims remain within expected ranges.
The company continues its ongoing shift to lower-risk products. In December, the company announced that it discontinued sales of substantially all variable annuities with living benefit riders at year end, with a full exit of new sales by mid-2022. In addition, the company discontinued sales of universal life with secondary guarantees and universal life/LTC combo products in the quarter.
Retirement & Protection Solutions sales increased to $1.6 billion. Variable annuity sales increased 15 percent to $1.5 billion, with 67 percent of sales in products without living benefit guarantees. Protection sales increased 41 percent to $97 million, reflecting a significant shift of sales to higher-margin accumulation VUL products.
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| Ameriprise Financial, Inc. | ||||||||||||||
| Corporate & Other Segment Adjusted Operating Results | ||||||||||||||
| Quarter Ended December 31, | % Over/ (Under) | |||||||||||||
| (in millions, unaudited) | 2021 | 2020 | ||||||||||||
| Corporate & Other, excluding Closed Blocks | $ | (88) | $ | (79) | (11)% | |||||||||
Closed Blocks (1) | (3) | 19 | NM | |||||||||||
| Pretax adjusted operating earnings | $ | (91) | $ | (60) | (52)% | |||||||||
| Long Term Care | $ | 4 | $ | 21 | (81)% | |||||||||
| Fixed Annuities | (7) | (2) | NM | |||||||||||
| Closed Blocks pretax adjusted operating earnings | $ | (3) | $ | 19 | 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 $91 million.
Corporate & Other, excluding Closed Blocks, pretax adjusted operating loss was $88 million. Results in the quarter included a $12 million impact from share price appreciation on compensation related expense.
Long Term Care pretax adjusted operating earnings were $4 million, down from last year as terminations and claim activity returned to pre-COVID levels in the quarter.
Fixed Annuities pretax adjusted operating loss was $7 million.
Taxes
The operating effective tax rate was 19.1 percent for the fourth quarter. The full year operating effective tax rate was 17.6 percent.
Contacts
Investor Relations: Media Relations:
Alicia A. Charity Paul W. Johnson
Ameriprise Financial Ameriprise Financial
(612) 671-2080 (612) 671-0625
alicia.a.charity@ampf.com paul.w.johnson@ampf.com
Stephanie M. Rabe
Ameriprise Financial
(612) 671-4085
stephanie.m.rabe@ampf.com
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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 over 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, BMO Asset Management Limited, LGM 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 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 to lower-risk products, including the exit from variable annuities with living benefit riders;
•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
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•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,” “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, 2020 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 year ended December 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.
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| Ameriprise Financial, Inc. | ||||||||||||||||||||
| Consolidated GAAP Results | ||||||||||||||||||||
| (in millions, except per share amounts, unaudited) | 4 Qtr 2021 | 4 Qtr 2020 | % Over/ (Under) | 3 Qtr 2021 | % Over/ (Under) | |||||||||||||||
| Revenues | ||||||||||||||||||||
| Management and financial advice fees | $ | 2,555 | $ | 2,003 | 28% | $ | 2,367 | 8% | ||||||||||||
| Distribution fees | 462 | 422 | 9% | 458 | 1% | |||||||||||||||
| Net investment income | 255 | 318 | (20)% | 773 | (67)% | |||||||||||||||
| Premiums, policy and contract charges | 367 | 375 | (2)% | (805) | NM | |||||||||||||||
| Other revenues | 123 | 71 | 73% | 113 | 9% | |||||||||||||||
| Total revenues | 3,762 | 3,189 | 18% | 2,906 | 29% | |||||||||||||||
| Banking and deposit interest expense | 2 | 6 | 67% | 3 | 33% | |||||||||||||||
| Total net revenues | 3,760 | 3,183 | 18% | 2,903 | 30% | |||||||||||||||
| Expenses | ||||||||||||||||||||
| Distribution expenses | 1,322 | 1,096 | (21)% | 1,285 | (3)% | |||||||||||||||
| Interest credited to fixed accounts | 145 | 121 | (20)% | 172 | 16% | |||||||||||||||
| Benefits, claims, losses and settlement expenses | 378 | 982 | 62% | (719) | NM | |||||||||||||||
| Amortization of deferred acquisition costs | 47 | (72) | NM | 9 | NM | |||||||||||||||
| Interest and debt expense | 42 | 38 | (11)% | 64 | 34% | |||||||||||||||
| General and administrative expense | 960 | 828 | (16)% | 822 | (17)% | |||||||||||||||
| Total expenses | 2,894 | 2,993 | 3% | 1,633 | (77)% | |||||||||||||||
| Pretax income | 866 | 190 | NM | 1,270 | (32)% | |||||||||||||||
| Income tax provision | 165 | 13 | NM | 239 | 31% | |||||||||||||||
| Net income | $ | 701 | $ | 177 | NM | $ | 1,031 | (32)% | ||||||||||||
| Earnings per share | ||||||||||||||||||||
| Basic earnings per share | $ | 6.12 | $ | 1.46 | $ | 8.86 | ||||||||||||||
| Earnings per diluted share | $ | 5.96 | $ | 1.43 | $ | 8.65 | ||||||||||||||
| Weighted average common shares outstanding | ||||||||||||||||||||
| Basic | 114.6 | 120.9 | 116.4 | |||||||||||||||||
| Diluted | 117.6 | 123.4 | 119.2 | |||||||||||||||||
| NM Not Meaningful - variance equal to or greater than 100% | ||||||||||||||||||||
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| Ameriprise Financial, Inc. | ||||||||||||||||||||
| Consolidated Highlights and Capital Summary | ||||||||||||||||||||
| (in millions unless otherwise noted, unaudited) | 4 Qtr 2021 | 4 Qtr 2020 | % Over/ (Under) | 3 Qtr 2021 | % Over/ (Under) | |||||||||||||||
| Assets Under Management and Administration | ||||||||||||||||||||
| Advice & Wealth Management AUM | $ | 460,935 | $ | 376,811 | 22% | $ | 431,861 | 7% | ||||||||||||
| Asset Management AUM | 754,056 | 546,613 | 38% | 583,398 | 29% | |||||||||||||||
| Corporate AUM | 136 | 82 | 66% | 104 | 31% | |||||||||||||||
| Eliminations | (44,160) | (37,483) | (18)% | (42,022) | (5)% | |||||||||||||||
| Total Assets Under Management | 1,170,967 | 886,023 | 32% | 973,341 | 20% | |||||||||||||||
| Total Assets Under Administration | 246,891 | 216,066 | 14% | 232,934 | 6% | |||||||||||||||
| Total AUM and AUA | $ | 1,417,858 | $ | 1,102,089 | 29% | $ | 1,206,275 | 18% | ||||||||||||
| S&P 500 | ||||||||||||||||||||
| Daily average | 4,600 | 3,555 | 29% | 4,425 | 4% | |||||||||||||||
| Period end | 4,766 | 3,756 | 27% | 4,308 | 11% | |||||||||||||||
Weighted Equity Index (WEI) (1) | ||||||||||||||||||||
| Daily average | 3,068 | 2,414 | 27% | 2,983 | 3% | |||||||||||||||
| Period end | 3,152 | 2,573 | 23% | 2,909 | 8% | |||||||||||||||
| Common shares | ||||||||||||||||||||
| Beginning balance | 112.4 | 118.6 | (5)% | 114.3 | (2)% | |||||||||||||||
| Repurchases | (1.6) | (2.1) | 24% | (2.1) | 24% | |||||||||||||||
| Issuances | 0.4 | 1.0 | (60)% | 0.4 | - | |||||||||||||||
| Other | (0.3) | (0.7) | 57% | (0.2) | (50)% | |||||||||||||||
| Total common shares outstanding | 110.9 | 116.8 | (5)% | 112.4 | (1)% | |||||||||||||||
| Restricted stock units | 3.0 | 3.2 | (6)% | 3.0 | - | |||||||||||||||
| Total basic common shares outstanding | 113.9 | 120.0 | (5)% | 115.4 | (1)% | |||||||||||||||
| Total potentially dilutive shares | 2.9 | 2.5 | 16% | 2.9 | - | |||||||||||||||
| Total diluted shares | 116.8 | 122.5 | (5)% | 118.3 | (1)% | |||||||||||||||
| Capital Returned to Shareholders | ||||||||||||||||||||
| Dividends paid | $ | 131 | $ | 126 | 4% | $ | 133 | (2)% | ||||||||||||
| Common stock share repurchases | 499 | 376 | 33% | 533 | (6)% | |||||||||||||||
| Total Capital Returned to Shareholders | $ | 630 | $ | 502 | 25% | $ | 666 | (5)% | ||||||||||||
(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. | ||||||||||||||||||||
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| Ameriprise Financial, Inc. | ||||||||||||||||||||||||||
| Advice & Wealth Management Segment Adjusted Operating Results | ||||||||||||||||||||||||||
| (in millions, unaudited) | 4 Qtr 2021 | 4 Qtr 2020 | % Over/ (Under) | 3 Qtr 2021 | % Over/ (Under) | |||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||
| Management and financial advice fees: | ||||||||||||||||||||||||||
| Advisory fees | $ | 1,209 | $ | 953 | 27% | $ | 1,189 | 2% | ||||||||||||||||||
| Financial planning fees | 114 | 100 | 14% | 91 | 25% | |||||||||||||||||||||
| Transaction and other fees | 96 | 88 | 9% | 94 | 2% | |||||||||||||||||||||
| Total management and financial advice fees | 1,419 | 1,141 | 24% | 1,374 | 3% | |||||||||||||||||||||
| Distribution fees: | ||||||||||||||||||||||||||
| Mutual funds | 220 | 197 | 12% | 219 | - | |||||||||||||||||||||
| Insurance and annuity | 256 | 229 | 12% | 246 | 4% | |||||||||||||||||||||
| Other products | 95 | 96 | (1)% | 96 | (1)% | |||||||||||||||||||||
| Total distribution fees | 571 | 522 | 9% | 561 | 2% | |||||||||||||||||||||
| Net investment income | 68 | 66 | 3% | 62 | 10% | |||||||||||||||||||||
| Other revenues | 58 | 53 | 9% | 54 | 7% | |||||||||||||||||||||
| Total revenues | 2,116 | 1,782 | 19% | 2,051 | 3% | |||||||||||||||||||||
| Banking and deposit interest expense | 2 | 6 | 67% | 3 | 33% | |||||||||||||||||||||
| Adjusted operating total net revenues | 2,114 | 1,776 | 19% | 2,048 | 3% | |||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Distribution expenses | 1,275 | 1,065 | (20)% | 1,238 | (3)% | |||||||||||||||||||||
| Interest and debt expense | 2 | 2 | - | 3 | 33% | |||||||||||||||||||||
| General and administrative expense | 365 | 357 | (2)% | 348 | (5)% | |||||||||||||||||||||
| Adjusted operating expenses | 1,642 | 1,424 | (15)% | 1,589 | (3)% | |||||||||||||||||||||
| Pretax adjusted operating earnings | $ | 472 | $ | 352 | 34% | $ | 459 | 3% | ||||||||||||||||||
| Pretax adjusted operating margin | 22.3 | % | 19.8 | % | 22.4 | % | ||||||||||||||||||||
| Pretax adjusted operating earnings by product | ||||||||||||||||||||||||||
| Certificates and Banking - Combined | $ | 21 | $ | 21 | - | $ | 17 | 24% | ||||||||||||||||||
| Wealth Management & Distribution | 451 | 331 | 36% | 442 | 2% | |||||||||||||||||||||
| Pretax adjusted operating earnings | $ | 472 | $ | 352 | 34% | $ | 459 | 3% | ||||||||||||||||||
12
| Ameriprise Financial, Inc. | ||||||||||||||||||||||||||
| Advice & Wealth Management Segment Operating Metrics | ||||||||||||||||||||||||||
| (in millions unless otherwise noted, unaudited) | 4 Qtr 2021 | 4 Qtr 2020 | % Over/ (Under) | 3 Qtr 2021 | % Over/ (Under) | |||||||||||||||||||||
| AWM Total Client Assets | $ | 857,584 | $ | 732,171 | 17% | $ | 811,189 | 6% | ||||||||||||||||||
Total Client Flows (1) | $ | 12,542 | $ | 9,697 | 29% | $ | 10,043 | 25% | ||||||||||||||||||
| Total Wrap Accounts | ||||||||||||||||||||||||||
| Beginning assets | $ | 435,375 | $ | 339,950 | 28% | $ | 430,003 | 1% | ||||||||||||||||||
Net flows (2) | 10,541 | 8,999 | 17% | 9,404 | 12% | |||||||||||||||||||||
Market appreciation (depreciation) and other (2) | 18,772 | 31,064 | (40)% | (4,032) | NM | |||||||||||||||||||||
| Total wrap ending assets | $ | 464,688 | $ | 380,013 | 22% | $ | 435,375 | 7% | ||||||||||||||||||
Advisory wrap account assets ending balance (3) | $ | 459,499 | $ | 375,657 | 22% | $ | 430,546 | 7% | ||||||||||||||||||
| Brokerage Cash & Certificates Balances | ||||||||||||||||||||||||||
| On-balance sheet (Net Investment Income) | ||||||||||||||||||||||||||
| On-balance sheet - broker dealer | $ | 3,513 | $ | 3,487 | 1% | $ | 3,441 | 2% | ||||||||||||||||||
| On-balance sheet - bank | 11,419 | 7,405 | 54% | 9,815 | 16% | |||||||||||||||||||||
| On-balance sheet - certificate | 5,300 | 6,760 | (22)% | 5,442 | (3)% | |||||||||||||||||||||
| Total on-balance sheet | $ | 20,232 | $ | 17,652 | 15% | $ | 18,698 | 8% | ||||||||||||||||||
| Off-balance sheet (Distribution Fees) | ||||||||||||||||||||||||||
| Off-balance sheet - broker dealer | $ | 23,593 | $ | 23,842 | (1)% | $ | 21,374 | 10% | ||||||||||||||||||
| Total brokerage cash & certificates balances | $ | 43,825 | $ | 41,494 | 6% | $ | 40,072 | 9% | ||||||||||||||||||
| Gross Fee Yield | ||||||||||||||||||||||||||
| On-balance sheet - broker dealer | 0.06 | % | 0.11 | % | 0.06 | % | ||||||||||||||||||||
On-balance sheet - bank (4) | 1.27 | % | 1.44 | % | 1.27 | % | ||||||||||||||||||||
| On-balance sheet - certificates | 0.94 | % | 1.32 | % | 1.06 | % | ||||||||||||||||||||
| Off-balance sheet - broker dealer | 0.26 | % | 0.29 | % | 0.28 | % | ||||||||||||||||||||
Weighted Average Gross Fee Yield (4) | 0.62 | % | 0.69 | % | 0.64 | % | ||||||||||||||||||||
| Financial Advisors | ||||||||||||||||||||||||||
| Employee advisors | 2,128 | 2,117 | 1% | 2,112 | 1% | |||||||||||||||||||||
| Franchisee advisors | 7,988 | 7,805 | 2% | 7,961 | - | |||||||||||||||||||||
| Total financial advisors | 10,116 | 9,922 | 2% | 10,073 | - | |||||||||||||||||||||
| Advisor Retention | ||||||||||||||||||||||||||
| Employee | 92.0 | % | 92.1 | % | 91.7 | % | ||||||||||||||||||||
| Franchisee | 94.2 | % | 94.0 | % | 94.3 | % | ||||||||||||||||||||
(1) Total client flows represent inflows of client cash and securities less client outflows. Inflows include dividends and interest; outflows include fees. Excludes short-term and long-term capital gain distributions. | ||||||||||||||||||||||||||
(2) Beginning in Q1 2021, wrap net flows is calculated including dividends and interest less fees, which were previously recorded in market appreciation (depreciation) and other. Net flows excludes short-term and long-term capital gain distributions. Prior periods have been restated. | ||||||||||||||||||||||||||
(3) Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts. Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee. | ||||||||||||||||||||||||||
(4) The Gross Fee Yield for prior periods have been restated. | ||||||||||||||||||||||||||
| NM Not Meaningful - variance equal to or greater than 100% | ||||||||||||||||||||||||||
13
| Ameriprise Financial, Inc. | ||||||||||||||||||||||||||
| Asset Management Segment Adjusted Operating Results | ||||||||||||||||||||||||||
| (in millions, unaudited) | 4 Qtr 2021 | 4 Qtr 2020 | % Over/ (Under) | 3 Qtr 2021 | % Over/ (Under) | |||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||
| Management and financial advice fees: | ||||||||||||||||||||||||||
| Asset management fees: | ||||||||||||||||||||||||||
| Retail | $ | 624 | $ | 492 | 27% | $ | 587 | 6% | ||||||||||||||||||
| Institutional | 248 | 134 | 85% | 143 | 73% | |||||||||||||||||||||
| Transaction and other fees | 58 | 51 | 14% | 57 | 2% | |||||||||||||||||||||
Revenue from other sources (1) | 7 | 4 | 75% | 7 | - | |||||||||||||||||||||
| Total management and financial advice fees | 937 | 681 | 38% | 794 | 18% | |||||||||||||||||||||
| Distribution fees: | ||||||||||||||||||||||||||
| Mutual funds | 70 | 63 | 11% | 70 | - | |||||||||||||||||||||
| Insurance and annuity | 49 | 45 | 9% | 50 | (2)% | |||||||||||||||||||||
| Total distribution fees | 119 | 108 | 10% | 120 | (1)% | |||||||||||||||||||||
| Net investment income | 2 | 8 | (75)% | 1 | NM | |||||||||||||||||||||
| Other revenues | 2 | 1 | NM | — | - | |||||||||||||||||||||
| Total revenues | 1,060 | 798 | 33% | 915 | 16% | |||||||||||||||||||||
| Banking and deposit interest expense | — | — | - | — | - | |||||||||||||||||||||
| Adjusted operating total net revenues | 1,060 | 798 | 33% | 915 | 16% | |||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Distribution expenses | 294 | 254 | (16)% | 288 | (2)% | |||||||||||||||||||||
| Amortization of deferred acquisition costs | 3 | 3 | - | 3 | - | |||||||||||||||||||||
| Interest and debt expense | 2 | 1 | NM | 1 | NM | |||||||||||||||||||||
| General and administrative expense | 431 | 339 | (27)% | 338 | (28)% | |||||||||||||||||||||
| Adjusted operating expenses | 730 | 597 | (22)% | 630 | (16)% | |||||||||||||||||||||
| Pretax adjusted operating earnings | $ | 330 | $ | 201 | 64% | $ | 285 | 16% | ||||||||||||||||||
| Net Pretax Adjusted Operating Margin Reconciliation | ||||||||||||||||||||||||||
| Adjusted operating total net revenues | $ | 1,060 | $ | 798 | 33% | $ | 915 | 16% | ||||||||||||||||||
| Distribution pass thru revenues | (234) | (205) | (14)% | (231) | (1)% | |||||||||||||||||||||
| Subadvisory and other pass thru revenues | (97) | (94) | (3)% | (97) | - | |||||||||||||||||||||
| Net adjusted operating revenues | $ | 729 | $ | 499 | 46% | $ | 587 | 24% | ||||||||||||||||||
| Pretax adjusted operating earnings | $ | 330 | $ | 201 | 64% | $ | 285 | 16% | ||||||||||||||||||
| Adjusted operating net investment income | (2) | (8) | 75% | (1) | NM | |||||||||||||||||||||
| Amortization of intangibles | 5 | 4 | 25% | 3 | 67% | |||||||||||||||||||||
| Net adjusted operating earnings | $ | 333 | $ | 197 | 69% | $ | 287 | 16% | ||||||||||||||||||
| Pretax adjusted operating margin | 31.1 | % | 25.2 | % | 31.1 | % | ||||||||||||||||||||
Net pretax adjusted operating margin (2) | 45.7 | % | 39.5 | % | 48.9 | % | ||||||||||||||||||||
Performance fees (3) | ||||||||||||||||||||||||||
| Performance fees | $ | 90 | $ | 17 | NM | $ | 13 | NM | ||||||||||||||||||
| Performance fee related to general and administrative expense | 55 | 4 | NM | — | - | |||||||||||||||||||||
| Net performance fees | $ | 35 | $ | 13 | NM | $ | 13 | 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%. | ||||||||||||||||||||||||||
14
| Ameriprise Financial, Inc. | ||||||||||||||||||||||||||
| Asset Management Segment Operating Metrics | ||||||||||||||||||||||||||
| (in millions, unaudited) | 4 Qtr 2021 | 4 Qtr 2020 | % Over/ (Under) | 3 Qtr 2021 | % Over/ (Under) | |||||||||||||||||||||
| Managed Assets Rollforward | ||||||||||||||||||||||||||
| Global Retail Funds | ||||||||||||||||||||||||||
| Beginning assets | $ | 355,719 | $ | 289,922 | 23% | $ | 359,476 | (1)% | ||||||||||||||||||
| Inflows | 20,358 | 16,922 | 20% | 16,442 | 24% | |||||||||||||||||||||
| Outflows | (19,111) | (14,518) | (32)% | (15,509) | (23)% | |||||||||||||||||||||
| Net VP/VIT fund flows | (1,093) | (840) | (30)% | (1,101) | 1% | |||||||||||||||||||||
| Net new flows | 154 | 1,564 | (90)% | (168) | NM | |||||||||||||||||||||
| Reinvested dividends | 13,414 | 6,219 | NM | 2,001 | NM | |||||||||||||||||||||
| Net flows | 13,568 | 7,783 | 74% | 1,833 | NM | |||||||||||||||||||||
| Distributions | (15,093) | (7,088) | NM | (2,151) | NM | |||||||||||||||||||||
Acquired assets (1) | 46,091 | — | - | — | - | |||||||||||||||||||||
| Market appreciation (depreciation) and other | 18,676 | 30,847 | (39)% | (2,282) | NM | |||||||||||||||||||||
Foreign currency translation (2) | (717) | 2,019 | NM | (1,157) | 38% | |||||||||||||||||||||
| Total ending assets | 418,244 | 323,483 | 29% | 355,719 | 18% | |||||||||||||||||||||
| % of total retail assets sub-advised | 15.4 | % | 17.7 | % | 16.0 | % | ||||||||||||||||||||
| Global Institutional | ||||||||||||||||||||||||||
| Beginning assets | 227,679 | 208,082 | 9% | 233,890 | (3)% | |||||||||||||||||||||
Inflows (3) | 24,175 | 5,378 | NM | 9,428 | NM | |||||||||||||||||||||
Outflows (3) | (10,274) | (6,177) | (66)% | (7,356) | (40)% | |||||||||||||||||||||
| Net flows | 13,901 | (799) | NM | 2,072 | NM | |||||||||||||||||||||
Acquired assets (1) | 90,125 | — | - | — | - | |||||||||||||||||||||
Market appreciation (depreciation) and other (4) | 5,046 | 11,388 | (56)% | (5,895) | NM | |||||||||||||||||||||
Foreign currency translation (2) | (939) | 4,459 | NM | (2,388) | 61% | |||||||||||||||||||||
| Total ending assets | 335,812 | 223,130 | 51% | 227,679 | 47% | |||||||||||||||||||||
| Total managed assets | $ | 754,056 | $ | 546,613 | 38% | $ | 583,398 | 29% | ||||||||||||||||||
| Total net flows | $ | 27,469 | $ | 6,984 | NM | $ | 3,905 | NM | ||||||||||||||||||
| Legacy insurance partners flows | $ | (920) | $ | (1,350) | 32% | $ | (1,402) | 34% | ||||||||||||||||||
Total Assets Under Advisement (5) | $ | 20,194 | $ | 13,929 | 45% | $ | 19,742 | 2% | ||||||||||||||||||
Model delivery AUA flows (6) | $ | 820 | $ | 226 | NM | $ | 514 | 60% | ||||||||||||||||||
(1) Reflects the acquisition of BMO’s EMEA Asset Management business that closed on November 8, 2021. | ||||||||||||||||||||||||||
(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%. | ||||||||||||||||||||||||||
15
| Ameriprise Financial, Inc. | ||||||||||||||||||||||||||
| Asset Management Segment Operating Metrics | ||||||||||||||||||||||||||
| (in millions, unaudited) | 4 Qtr 2021 | 4 Qtr 2020 | % Over/ (Under) | 3 Qtr 2021 | % Over/ (Under) | |||||||||||||||||||||
Total Managed Assets by Type (1) | ||||||||||||||||||||||||||
| Equity | $ | 402,841 | $ | 302,563 | 33% | $ | 332,715 | 21% | ||||||||||||||||||
| Fixed income | 277,039 | 195,971 | 41% | 198,696 | 39% | |||||||||||||||||||||
| Money market | 10,084 | 5,899 | 71% | 5,752 | 75% | |||||||||||||||||||||
| Alternative | 39,872 | 22,456 | 78% | 23,389 | 70% | |||||||||||||||||||||
| Hybrid and other | 24,220 | 19,724 | 23% | 22,846 | 6% | |||||||||||||||||||||
| Total managed assets by type | $ | 754,056 | $ | 546,613 | 38% | $ | 583,398 | 29% | ||||||||||||||||||
Average Managed Assets by Type (1) (2) | ||||||||||||||||||||||||||
| Equity | $ | 372,152 | $ | 279,128 | 33% | $ | 340,804 | 9% | ||||||||||||||||||
| Fixed income | 251,533 | 191,679 | 31% | 200,106 | 26% | |||||||||||||||||||||
| Money market | 8,258 | 5,397 | 53% | 5,831 | 42% | |||||||||||||||||||||
| Alternative | 33,939 | 21,986 | 54% | 23,360 | 45% | |||||||||||||||||||||
| Hybrid and other | 23,686 | 18,791 | 26% | 23,172 | 2% | |||||||||||||||||||||
| Total average managed assets by type | $ | 689,568 | $ | 516,981 | 33% | $ | 593,273 | 16% | ||||||||||||||||||
(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. | ||||||||||||||||||||||||||
| Ameriprise Financial, Inc. | ||||||||||||||
| Asset Management Segment Performance Metrics | ||||||||||||||
| 4 Qtr 2021 | ||||||||||||||
| Retail Fund Rankings in Top 2 Quartiles or Above Index Benchmark - Asset Weighted | 1 year | 3 year | 5 year | 10 year | ||||||||||
| Equity | 61% | 86% | 82% | 88% | ||||||||||
| Fixed Income | 77% | 96% | 96% | 92% | ||||||||||
| Asset Allocation | 60% | 83% | 86% | 90% | ||||||||||
| 4- or 5-star Morningstar rated funds | Overall | 3 year | 5 year | 10 year | ||||||||||
| Number of Rated Funds | 133 | 114 | 111 | 102 | ||||||||||
| Percent of Rated Assets | 70% | 64% | 60% | 71% | ||||||||||
Retail Fund performance rankings for each fund is measured on a consistent basis against the most appropriate peer group or index. Peer Groupings are defined by either Lipper, IA, or Morningstar and based primarily on the Institutional Share Class, Net of Fees. Comparisons to Index are measured Gross of Fees. | ||||||||||||||
To calculate asset weighted performance, the sum of the total assets of the funds with above median ranking are divided by total assets of all funds. Funds with more assets will receive a greater share of the total percentage above or below median. | ||||||||||||||
Aggregated Asset Allocation Funds may include funds that invest in other Columbia or Threadneedle branded mutual funds included in both equity and fixed income. | ||||||||||||||
Morningstar as of 12/31/21. Columbia funds are available for purchase by U.S. customers. Out of 91 Columbia funds (Inst. shares) rated, 16 received a 5-star Overall Rating and 37 received a 4-star Overall Rating. Out of 92 Threadneedle funds (highest rated share class) rated, 19 received a 5-star Overall Rating and 35 received a 4-star Overall Rating. Out of 62 BMO funds (highest rated share class) rated, 8 received a 5-star Overall Rating and 18 received a 4-star Over Rating. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics. Not all funds are available in all jurisdictions, to all investors or through all firms. © 2021 Morningstar. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. | ||||||||||||||
16
| Ameriprise Financial, Inc. | ||||||||||||||||||||
| Retirement & Protection Solutions Segment Adjusted Operating Results | ||||||||||||||||||||
| (in millions, unaudited) | 4 Qtr 2021 | 4 Qtr 2020 | % Over/ (Under) | 3 Qtr 2021 | % Over/ (Under) | |||||||||||||||
| Revenues | ||||||||||||||||||||
| Management and financial advice fees | $ | 237 | $ | 219 | 8% | $ | 239 | (1)% | ||||||||||||
| Distribution fees | 124 | 115 | 8% | 125 | (1)% | |||||||||||||||
| Net investment income | 113 | 128 | (12)% | 114 | (1)% | |||||||||||||||
| Premiums, policy and contract charges | 337 | 337 | - | 353 | (5)% | |||||||||||||||
| Other revenues | 4 | — | - | 3 | 33% | |||||||||||||||
| Total revenues | 815 | 799 | 2% | 834 | (2)% | |||||||||||||||
| Banking and deposit interest expense | — | — | - | — | - | |||||||||||||||
| Adjusted operating total net revenues | 815 | 799 | 2% | 834 | (2)% | |||||||||||||||
| Expenses | ||||||||||||||||||||
| Distribution expenses | 134 | 124 | (8)% | 134 | - | |||||||||||||||
| Interest credited to fixed accounts | 96 | 97 | 1% | 99 | 3% | |||||||||||||||
| Benefits, claims, losses and settlement expenses | 244 | 253 | 4% | 323 | 24% | |||||||||||||||
| Amortization of deferred acquisition costs | 70 | 59 | (19)% | 5 | NM | |||||||||||||||
| Interest and debt expense | 9 | 11 | 18% | 9 | - | |||||||||||||||
| General and administrative expense | 79 | 75 | (5)% | 77 | (3)% | |||||||||||||||
| Adjusted operating expenses | 632 | 619 | (2)% | 647 | 2% | |||||||||||||||
| Pretax adjusted operating earnings | $ | 183 | $ | 180 | 2% | $ | 187 | (2)% | ||||||||||||
| NM Not Meaningful - variance equal to or greater than 100% | ||||||||||||||||||||
17
| Ameriprise Financial, Inc. | ||||||||||||||||||||
| Retirement & Protection Solutions Segment Operating Metrics | ||||||||||||||||||||
| (in millions, unaudited) | 4 Qtr 2021 | 4 Qtr 2020 | % Over/ (Under) | 3 Qtr 2021 | % Over/ (Under) | |||||||||||||||
| Variable Annuities Rollforwards | ||||||||||||||||||||
| Beginning balance | $ | 89,635 | $ | 79,846 | 12% | $ | 90,494 | (1)% | ||||||||||||
| Deposit | 1,530 | 1,327 | 15% | 1,421 | 8% | |||||||||||||||
| Withdrawals and terminations | (2,011) | (1,786) | (13)% | (1,900) | (6)% | |||||||||||||||
| Net flows | (481) | (459) | (5)% | (479) | - | |||||||||||||||
| Investment performance and interest credited | 3,138 | 6,387 | (51)% | (380) | NM | |||||||||||||||
| Total ending balance - contract accumulation values | $ | 92,292 | $ | 85,774 | 8% | $ | 89,635 | 3% | ||||||||||||
| Variable annuities fixed sub-accounts | $ | 4,990 | $ | 5,104 | (2)% | $ | 5,020 | (1)% | ||||||||||||
| Life Insurance In Force | $ | 198,553 | $ | 195,750 | 1% | $ | 197,523 | 1% | ||||||||||||
| Net Amount at Risk (Life) | $ | 37,652 | $ | 37,817 | - | $ | 37,766 | - | ||||||||||||
| Net Policyholder Reserves | ||||||||||||||||||||
| VUL/UL | $ | 15,049 | $ | 13,738 | 10% | $ | 14,565 | 3% | ||||||||||||
| Term and whole life | 167 | 174 | (4)% | 168 | (1)% | |||||||||||||||
| Disability insurance | 483 | 504 | (4)% | 488 | (1)% | |||||||||||||||
| Other insurance | 608 | 643 | (5)% | 623 | (2)% | |||||||||||||||
| Total net policyholder reserves | $ | 16,307 | $ | 15,059 | 8% | $ | 15,844 | 3% | ||||||||||||
| DAC Ending Balances | ||||||||||||||||||||
| Variable Annuities DAC | $ | 1,876 | $ | 1,711 | 10% | $ | 1,840 | 2% | ||||||||||||
| Life and Health DAC | $ | 847 | $ | 766 | 11% | $ | 834 | 2% | ||||||||||||
| NM Not Meaningful - variance equal to or greater than 100% | ||||||||||||||||||||
18
| Ameriprise Financial, Inc. | ||||||||||||||||||||
| Corporate Segment Adjusted Operating Results and Metrics | ||||||||||||||||||||
| (in millions, unaudited) | 4 Qtr 2021 | 4 Qtr 2020 | % Over/ (Under) | 3 Qtr 2021 | % Over/ (Under) | |||||||||||||||
| Corporate Excluding Long Term Care and Fixed Annuities Adjusted Operating Income Statements | ||||||||||||||||||||
| Revenues | ||||||||||||||||||||
| Management and financial advice fees | $ | — | $ | — | - | $ | — | - | ||||||||||||
| Distribution fees | — | — | - | — | - | |||||||||||||||
| Net investment income | (12) | (13) | 8% | (17) | 29% | |||||||||||||||
| Premiums, policy and contract charges | (1) | — | - | — | - | |||||||||||||||
| Other revenues | 4 | 2 | NM | 1 | NM | |||||||||||||||
| Total revenues | (9) | (11) | 18% | (16) | 44% | |||||||||||||||
| Banking and deposit interest expense | 1 | 1 | - | — | - | |||||||||||||||
| Adjusted operating total net revenues | (10) | (12) | 17% | (16) | 38% | |||||||||||||||
| Expenses | ||||||||||||||||||||
| Distribution expenses | — | — | - | — | - | |||||||||||||||
| Interest credited to fixed accounts | — | — | - | — | - | |||||||||||||||
| Benefits, claims, losses and settlement expenses | (1) | (1) | - | — | - | |||||||||||||||
| Amortization of deferred acquisition costs | (1) | — | - | — | - | |||||||||||||||
| Interest and debt expense | 13 | 10 | (30)% | 13 | - | |||||||||||||||
| General and administrative expense | 67 | 58 | (16)% | 44 | (52)% | |||||||||||||||
| Adjusted operating expenses | 78 | 67 | (16)% | 57 | (37)% | |||||||||||||||
| Pretax adjusted operating earnings (loss) | $ | (88) | $ | (79) | (11)% | $ | (73) | (21)% | ||||||||||||
| NM Not Meaningful - variance equal to or greater than 100% | ||||||||||||||||||||
19
| Ameriprise Financial, Inc. | ||||||||||||||||||||
| Corporate Segment Adjusted Operating Results and Metrics | ||||||||||||||||||||
| (in millions, unaudited) | 4 Qtr 2021 | 4 Qtr 2020 | % Over/ (Under) | 3 Qtr 2021 | % Over/ (Under) | |||||||||||||||
| Long Term Care Adjusted Operating Income Statements | ||||||||||||||||||||
| Revenues | ||||||||||||||||||||
| Management and financial advice fees | $ | — | $ | — | - | $ | — | - | ||||||||||||
| Distribution fees | — | — | - | — | - | |||||||||||||||
| Net investment income | 37 | 38 | (3)% | 36 | 3% | |||||||||||||||
| Premiums, policy and contract charges | 25 | 26 | (4)% | 26 | (4)% | |||||||||||||||
| Other revenues | — | — | - | — | - | |||||||||||||||
| Total revenues | 62 | 64 | (3)% | 62 | - | |||||||||||||||
| Banking and deposit interest expense | — | — | - | — | - | |||||||||||||||
| Adjusted operating total net revenues | 62 | 64 | (3)% | 62 | - | |||||||||||||||
| Expenses | ||||||||||||||||||||
| Distribution expenses | (3) | (3) | - | (3) | - | |||||||||||||||
| Interest credited to fixed accounts | — | — | - | — | - | |||||||||||||||
| Benefits, claims, losses and settlement expenses | 53 | 39 | (36)% | 58 | 9% | |||||||||||||||
| Amortization of deferred acquisition costs | — | — | - | — | - | |||||||||||||||
| Interest and debt expense | 2 | 1 | NM | 3 | 33% | |||||||||||||||
| General and administrative expense | 6 | 6 | - | 5 | (20)% | |||||||||||||||
| Adjusted operating expenses | 58 | 43 | (35)% | 63 | 8% | |||||||||||||||
| Pretax adjusted operating earnings (loss) | $ | 4 | $ | 21 | (81)% | $ | (1) | NM | ||||||||||||
Long Term Care Policyholder Reserves, net of reinsurance (1) | ||||||||||||||||||||
| Active Life Reserves | $ | 2,487 | $ | 2,539 | (2)% | $ | 2,501 | (1)% | ||||||||||||
| Disabled Life Reserves | 565 | 564 | - | 558 | 1% | |||||||||||||||
| Total long term care policyholder reserves, net of reinsurance | $ | 3,052 | $ | 3,103 | (2)% | $ | 3,059 | - | ||||||||||||
(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% | ||||||||||||||||||||
20
| Ameriprise Financial, Inc. | ||||||||||||||||||||||||||
| Corporate Segment Adjusted Operating Results and Metrics | ||||||||||||||||||||||||||
| (in millions, unaudited) | 4 Qtr 2021 | 4 Qtr 2020 | % Over/ (Under) | 3 Qtr 2021 | % Over/ (Under) | |||||||||||||||||||||
| Fixed Annuities Adjusted Operating Income Statements | ||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||
| Management and financial advice fees | $ | — | $ | — | - | $ | — | - | ||||||||||||||||||
| Distribution fees | 1 | — | - | — | - | |||||||||||||||||||||
| Net investment income | 7 | 67 | (90)% | 12 | (42)% | |||||||||||||||||||||
| Premiums, policy and contract charges | 1 | — | - | — | - | |||||||||||||||||||||
| Other revenues | 55 | 15 | NM | 55 | - | |||||||||||||||||||||
| Total revenues | 64 | 82 | (22)% | 67 | (4)% | |||||||||||||||||||||
| Banking and deposit interest expense | — | — | - | — | - | |||||||||||||||||||||
| Adjusted operating total net revenues | 64 | 82 | (22)% | 67 | (4)% | |||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Distribution expenses | — | 1 | NM | 1 | NM | |||||||||||||||||||||
| Interest credited to fixed accounts | 63 | 65 | 3% | 64 | 2% | |||||||||||||||||||||
| Benefits, claims, losses and settlement expenses | 1 | 1 | - | 1 | - | |||||||||||||||||||||
| Amortization of deferred acquisition costs | 3 | 3 | - | 1 | NM | |||||||||||||||||||||
| Interest and debt expense | — | 5 | NM | — | - | |||||||||||||||||||||
| General and administrative expense | 4 | 9 | 56% | 7 | 43% | |||||||||||||||||||||
| Adjusted operating expenses | 71 | 84 | 15% | 74 | 4% | |||||||||||||||||||||
| Pretax adjusted operating earnings (loss) | $ | (7) | $ | (2) | NM | $ | (7) | - | ||||||||||||||||||
| NM Not Meaningful - variance equal to or greater than 100% | ||||||||||||||||||||||||||
21
| Ameriprise Financial, Inc. | ||||||||||||||||||||
Eliminations (1) Adjusted Operating Results | ||||||||||||||||||||
| (in millions, unaudited) | 4 Qtr 2021 | 4 Qtr 2020 | % Over/ (Under) | 3 Qtr 2021 | % Over/ (Under) | |||||||||||||||
| Revenues | ||||||||||||||||||||
| Management and financial advice fees | $ | (37) | $ | (36) | (3)% | $ | (38) | 3% | ||||||||||||
| Distribution fees | (353) | (323) | (9)% | (348) | (1)% | |||||||||||||||
| Net investment income | (4) | (5) | 20% | (1) | NM | |||||||||||||||
| Premiums, policy and contract charges | (8) | (8) | - | (8) | - | |||||||||||||||
| Other revenues | 1 | — | - | — | - | |||||||||||||||
| Total revenues | (401) | (372) | (8)% | (395) | (2)% | |||||||||||||||
| Banking and deposit interest expense | (1) | (1) | - | — | - | |||||||||||||||
| Adjusted operating total net revenues | (400) | (371) | (8)% | (395) | (1)% | |||||||||||||||
| Expenses | ||||||||||||||||||||
| Distribution expenses | (378) | (345) | 10% | (373) | 1% | |||||||||||||||
| Interest credited to fixed accounts | — | — | - | — | - | |||||||||||||||
| Benefits, claims, losses and settlement expenses | (8) | (5) | 60% | (6) | 33% | |||||||||||||||
| Amortization of deferred acquisition costs | — | — | - | — | - | |||||||||||||||
| Interest and debt expense | (3) | (4) | (25)% | (3) | - | |||||||||||||||
| General and administrative expense | (11) | (17) | (35)% | (13) | (15)% | |||||||||||||||
| Adjusted operating expenses | (400) | (371) | 8% | (395) | 1% | |||||||||||||||
| Pretax adjusted operating earnings (loss) | $ | — | $ | — | - | $ | — | - | ||||||||||||
(1) The majority of the amounts represent the impact of inter-segment transfer pricing for both revenues and expenses. | ||||||||||||||||||||
| NM Not Meaningful - variance equal to or greater than 100% | ||||||||||||||||||||
22
| Ameriprise Financial, Inc. | ||||||||||||||||||||
| Capital Information | ||||||||||||||||||||
| (in millions, unaudited) | December 31, 2021 | December 31, 2020 | September 30, 2021 | |||||||||||||||||
| Long-term Debt Summary | ||||||||||||||||||||
| Senior notes | $ | 2,800 | $ | 2,800 | $ | 2,800 | ||||||||||||||
| Finance lease liabilities | 40 | 44 | 41 | |||||||||||||||||
Other (1) | (8) | (13) | (10) | |||||||||||||||||
| Total Ameriprise Financial long-term debt | 2,832 | 2,831 | 2,831 | |||||||||||||||||
| Non-recourse debt of consolidated investment entities | 2,164 | 1,913 | 2,163 | |||||||||||||||||
| Total long-term debt | $ | 4,996 | $ | 4,744 | $ | 4,994 | ||||||||||||||
| Total Ameriprise Financial long-term debt | $ | 2,832 | $ | 2,831 | $ | 2,831 | ||||||||||||||
| Finance lease liabilities | (40) | (44) | (41) | |||||||||||||||||
Other (1) | 8 | 13 | 10 | |||||||||||||||||
| Total Ameriprise Financial long-term debt excluding finance lease liabilities and other | $ | 2,800 | $ | 2,800 | $ | 2,800 | ||||||||||||||
Total equity (2) | $ | 5,685 | $ | 5,867 | $ | 5,707 | ||||||||||||||
| Equity of consolidated investment entities | (3) | (3) | (5) | |||||||||||||||||
| Total equity excluding CIEs | $ | 5,682 | $ | 5,864 | $ | 5,702 | ||||||||||||||
| Total Ameriprise Financial capital | $ | 8,517 | $ | 8,698 | $ | 8,538 | ||||||||||||||
| Total Ameriprise Financial capital finance lease liabilities, other and equity of CIEs | $ | 8,482 | $ | 8,664 | $ | 8,502 | ||||||||||||||
| Debt to capital | ||||||||||||||||||||
| Total Ameriprise Financial long-term debt to total Ameriprise Financial capital | 33.3 | % | 32.5 | % | 33.2 | % | ||||||||||||||
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital excluding finance lease liabilities, other and equity of CIEs (2) | 33.0 | % | 32.3 | % | 32.9 | % | ||||||||||||||
(1) Includes adjustments for fair value of hedges, unamortized discount, debt issuance costs and other lease obligations. | ||||||||||||||||||||
(2) Includes accumulated other comprehensive income, net of tax. | ||||||||||||||||||||
23
| Ameriprise Financial, Inc. | ||||||||||||||
| Consolidated Balance Sheets | ||||||||||||||
| (in millions, unaudited) | December 31, 2021 | December 31, 2020 | ||||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents | $ | 7,127 | $ | 6,751 | ||||||||||
| Cash of consolidated investment entities | 121 | 94 | ||||||||||||
| Investments | 35,810 | 41,031 | ||||||||||||
| Investments of consolidated investment entities | 2,184 | 1,918 | ||||||||||||
| Separate account assets | 97,491 | 92,611 | ||||||||||||
| Receivables | 16,205 | 7,819 | ||||||||||||
| Receivables of consolidated investment entities | 17 | 16 | ||||||||||||
| Deferred acquisition costs | 2,782 | 2,532 | ||||||||||||
| Restricted and segregated cash and investments | 2,795 | 2,558 | ||||||||||||
| Other assets | 11,444 | 10,551 | ||||||||||||
| Other assets of consolidated investment entities | 3 | 2 | ||||||||||||
| Total Assets | $ | 175,979 | $ | 165,883 | ||||||||||
| Liabilities | ||||||||||||||
| Policyholder account balances, future policy benefits and claims | $ | 35,750 | $ | 33,992 | ||||||||||
| Separate account liabilities | 97,491 | 92,611 | ||||||||||||
| Customer deposits | 20,227 | 17,641 | ||||||||||||
| Short-term borrowings | 200 | 200 | ||||||||||||
| Long-term debt | 2,832 | 2,831 | ||||||||||||
| Debt of consolidated investment entities | 2,164 | 1,913 | ||||||||||||
| Accounts payable and accrued expenses | 2,527 | 1,998 | ||||||||||||
| Other liabilities | 8,966 | 8,761 | ||||||||||||
| Other liabilities of consolidated investment entities | 137 | 69 | ||||||||||||
| Total Liabilities | 170,294 | 160,016 | ||||||||||||
| Equity | ||||||||||||||
| Ameriprise Financial | ||||||||||||||
| Common shares ($.01 par) | 3 | 3 | ||||||||||||
| Additional paid-in capital | 9,220 | 8,822 | ||||||||||||
| Retained earnings | 17,525 | 15,292 | ||||||||||||
| Treasury stock | (21,066) | (18,879) | ||||||||||||
| Accumulated other comprehensive income, net of tax | 3 | 629 | ||||||||||||
| Total Equity | 5,685 | 5,867 | ||||||||||||
| Total Liabilities and Equity | $ | 175,979 | $ | 165,883 | ||||||||||
24
| Ameriprise Financial, Inc. | |||||||||||||||||||||||||||||
| Reconciliation Table: Earnings | |||||||||||||||||||||||||||||
| Quarter Ended December 31, | Per Diluted Share Quarter Ended December 31, | % Over/ (Under) | |||||||||||||||||||||||||||
| (in millions, except per share amounts, unaudited) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
| Net income | $ | 701 | $ | 177 | $ | 5.96 | $ | 1.43 | NM | ||||||||||||||||||||
Less: Net realized investment gains (losses) (1) | 9 | 8 | 0.08 | 0.06 | |||||||||||||||||||||||||
Add: Market impact on non-traditional long-duration products (1) | 79 | 614 | 0.67 | 4.98 | |||||||||||||||||||||||||
Add: Mean reversion-related impacts (1) | (45) | (117) | (0.38) | (0.95) | |||||||||||||||||||||||||
Add: Market impact of hedges on investments (1) | (18) | — | (0.15) | — | |||||||||||||||||||||||||
Add: Integration/restructuring charges (1) | 18 | — | 0.15 | — | |||||||||||||||||||||||||
| Less: Net income (loss) attributable to consolidated investment entities | (2) | 5 | (0.02) | 0.04 | |||||||||||||||||||||||||
Add: Tax effect of adjustments (2) | (5) | (102) | (0.04) | (0.83) | |||||||||||||||||||||||||
| Adjusted operating earnings | $ | 723 | $ | 559 | $ | 6.15 | $ | 4.53 | 36% | ||||||||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||||||||
| Basic | 114.6 | 120.9 | |||||||||||||||||||||||||||
| Diluted | 117.6 | 123.4 | |||||||||||||||||||||||||||
(1) Pretax adjusted operating adjustment. | |||||||||||||||||||||||||||||
(2) Calculated using the statutory tax rate of 21%. | |||||||||||||||||||||||||||||
| NM Not Meaningful - variance equal to or greater than 100% | |||||||||||||||||||||||||||||
25
| Ameriprise Financial, Inc. | |||||||||||||||||||||||||||||
| Reconciliation Table: Earnings | |||||||||||||||||||||||||||||
| Year-to-date December 31, | Per Diluted Share Year-to-date December 31, | % Over/ (Under) | |||||||||||||||||||||||||||
| (in millions, except per share amounts, unaudited) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
| Net income | $ | 2,760 | $ | 1,534 | $ | 23.00 | $ | 12.20 | 89% | ||||||||||||||||||||
Less: Net realized investment gains (losses) (1) | 87 | (10) | 0.73 | (0.08) | |||||||||||||||||||||||||
Add: Market impact on non-traditional long-duration products (1) | 656 | 375 | 5.47 | 2.98 | |||||||||||||||||||||||||
Add: Mean reversion-related impacts (1) | (152) | (87) | (1.27) | (0.69) | |||||||||||||||||||||||||
Add: Market impact of hedges on investments (1) | 22 | — | 0.18 | — | |||||||||||||||||||||||||
Less: Block transfer reinsurance transaction impacts (1) | 521 | — | 4.34 | — | |||||||||||||||||||||||||
Add: Integration/restructuring charges (1) | 32 | 4 | 0.27 | 0.03 | |||||||||||||||||||||||||
| Less: Net income (loss) attributable to consolidated investment entities | (3) | 3 | (0.03) | 0.02 | |||||||||||||||||||||||||
Add: Tax effect of adjustments (2) | 11 | (63) | 0.09 | (0.50) | |||||||||||||||||||||||||
| Adjusted operating earnings | $ | 2,724 | $ | 1,770 | $ | 22.70 | $ | 14.08 | 61% | ||||||||||||||||||||
| Less: Pretax impact of annual unlocking/loss recognition | (8) | (442) | (0.07) | (3.52) | |||||||||||||||||||||||||
| Less: Tax effect of annual unlocking/loss recognition | 2 | 93 | 0.02 | 0.74 | |||||||||||||||||||||||||
| Adjusted operating earnings excluding Unlocking | $ | 2,730 | $ | 2,119 | $ | 22.75 | $ | 16.86 | 35% | ||||||||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||||||||
| Basic | 117.3 | 123.8 | |||||||||||||||||||||||||||
| Diluted | 120.0 | 125.7 | |||||||||||||||||||||||||||
(1) Pretax adjusted operating adjustment. | |||||||||||||||||||||||||||||
(2) Calculated using the statutory tax rate of 21%. | |||||||||||||||||||||||||||||
26
| Ameriprise Financial, Inc. | |||||||||||||||||
| Reconciliation Table: Pretax Adjusted Operating Earnings and Pretax Adjusted Operating Margin | |||||||||||||||||
| Quarter Ended December 31, | |||||||||||||||||
| (in millions, unaudited) | 2021 | 2020 | |||||||||||||||
| Total net revenues | $ | 3,760 | $ | 3,183 | |||||||||||||
| Less: Net realized investment gains (losses) | 9 | 8 | |||||||||||||||
| Less: Market impact on non-traditional long-duration products | 13 | 20 | |||||||||||||||
| Less: Market impact of hedges on investments | 18 | — | |||||||||||||||
| Less: CIEs revenue | 15 | 19 | |||||||||||||||
| Adjusted operating total net revenues | $ | 3,705 | $ | 3,136 | |||||||||||||
| Total expenses | $ | 2,894 | $ | 2,993 | |||||||||||||
| Less: CIEs expenses | 18 | 13 | |||||||||||||||
| Less: Integration/restructuring charges | 18 | — | |||||||||||||||
| Less: Market impact on non-traditional long-duration products | 92 | 634 | |||||||||||||||
| Less: Mean reversion-related impacts | (45) | (117) | |||||||||||||||
| Adjusted operating expenses | $ | 2,811 | $ | 2,463 | |||||||||||||
| Pretax income | $ | 866 | $ | 190 | |||||||||||||
| Pretax adjusted operating earnings | $ | 894 | $ | 673 | |||||||||||||
| Pretax income margin | 23.0 | % | 6.0 | % | |||||||||||||
| Pretax adjusted operating margin | 24.1 | % | 21.5 | % | |||||||||||||
| Ameriprise Financial, Inc. | ||||||||||||||
| Reconciliation Table: Effective Tax Rate | ||||||||||||||
| Quarter Ended December 31, 2020 | ||||||||||||||
| (in millions, unaudited) | GAAP | Adjusted Operating | ||||||||||||
| Pretax income | $ | 190 | $ | 673 | ||||||||||
| Income tax provision | $ | 13 | $ | 114 | ||||||||||
| Effective tax rate | 6.5 | % | 16.9 | % | ||||||||||
27
| Quarter Ended December 31, 2021 | ||||||||||||||
| (in millions, unaudited) | GAAP | Adjusted Operating | ||||||||||||
| Pretax income | $ | 866 | $ | 894 | ||||||||||
| Income tax provision | $ | 165 | $ | 171 | ||||||||||
| Effective tax rate | 19.0 | % | 19.1 | % | ||||||||||
| Year-to-date December 31, 2021 | ||||||||||||||
| (in millions, unaudited) | GAAP | Adjusted Operating | ||||||||||||
| Pretax income | $ | 3,350 | $ | 3,304 | ||||||||||
| Income tax provision | $ | 590 | $ | 580 | ||||||||||
| Effective tax rate | 17.6 | % | 17.6 | % | ||||||||||
| Ameriprise Financial, Inc. | |||||||||||||||||||||||||||||
| Reconciliation Table: Advice & Wealth Management Adjusted Revenue Per Advisor | |||||||||||||||||||||||||||||
| (unaudited) | 1Q 2020 | 2Q 2020 | 3Q 2020 | 4Q 2020 | 1Q 2021 | 2Q 2021 | 3Q 2021 | 4Q 2021 | % Over/Under | ||||||||||||||||||||
| Total Net Revenue ($ in M) | $ | 1,695 | $ | 1,537 | $ | 1,667 | $ | 1,776 | $ | 1,879 | $ | 1,980 | $ | 2,048 | $ | 2,114 | |||||||||||||
| Interest Revenue ($ in M) | $ | (78) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
| Advisor Count | 9,878 | 9,894 | 9,905 | 9,922 | 10,031 | 10,047 | 10,073 | 10,116 | |||||||||||||||||||||
| Revenue Per Advisor ($ in K) | $ | 172 | $ | 155 | $ | 168 | $ | 179 | $ | 187 | $ | 197 | $ | 203 | $ | 209 | |||||||||||||
| Revenue Per Advisor excluding short-term interest rate impact ($ in K) | $ | 164 | $ | 155 | $ | 168 | $ | 179 | $ | 187 | $ | 197 | $ | 203 | $ | 209 | |||||||||||||
| Revenue Per Advisor TTM ($ in K) | $ | 674 | $ | 796 | 18% | ||||||||||||||||||||||||
| Revenue Per Advisor excluding short-term interest rate impact TTM ($ in K) | $ | 666 | $ | 796 | 20% | ||||||||||||||||||||||||
28
| Ameriprise Financial, Inc. | ||||||||||||||
| Reconciliation Table: Pretax Adjusted Operating Earnings Mix Shift | ||||||||||||||
| Quarter Ended December 31, | ||||||||||||||
| (in millions, unaudited) | 2021 | 2020 | ||||||||||||
| Advice & Wealth Management | $ | 472 | $ | 352 | ||||||||||
| Asset Management | 330 | 201 | ||||||||||||
| RPS | 183 | 180 | ||||||||||||
| Pretax adjusted operating earnings ex Corporate | $ | 985 | $ | 733 | ||||||||||
| Advice & Wealth Management | 48 | % | 48 | % | ||||||||||
| Asset Management | 33 | % | 27 | % | ||||||||||
| RPS | 19 | % | 25 | % | ||||||||||
| Subtotal pretax adjusted operating earnings | 100 | % | 100 | % | ||||||||||
| AWM & AM | 81 | % | 75 | % | ||||||||||
| Ameriprise Financial, Inc. | ||||||||
| Reconciliation Table: Pretax Adjusted Operating Earnings Mix Shift | ||||||||
| Year-to-date December 31, 2021 | ||||||||
| (in millions, unaudited) | ||||||||
| Advice & Wealth Management | $ | 1,743 | ||||||
| Asset Management | 1,096 | |||||||
| RPS | 735 | |||||||
| Pretax adjusted operating earnings ex Corporate | $ | 3,574 | ||||||
| Advice & Wealth Management | 49 | % | ||||||
| Asset Management | 31 | % | ||||||
| RPS | 20 | % | ||||||
| Subtotal pretax adjusted operating earnings | 100 | % | ||||||
| AWM & AM | 80 | % | ||||||
29
| Ameriprise Financial, Inc. | ||||||||||||||||||||
| Reconciliation Table: Asset Management Net Pretax Adjusted Operating Margin | ||||||||||||||||||||
| Quarter Ended December 31, 2021 | ||||||||||||||||||||
| (in millions, unaudited) | Asset Mgmt | BMO (2) | Asset Mgmt ex BMO | |||||||||||||||||
| Adjusted operating total net revenues | $ | 1,060 | $ | 59 | $ | 1,001 | ||||||||||||||
| Distribution, Subadvisory and other pass thru revenues | (331) | (1) | (330) | |||||||||||||||||
| Net adjusted operating revenues | $ | 729 | $ | 58 | $ | 671 | ||||||||||||||
| Pretax adjusted operating earnings | $ | 330 | $ | 4 | $ | 326 | ||||||||||||||
| Operating net investment income and amortization of intangibles | 3 | 3 | — | |||||||||||||||||
| Net adjusted operating earnings | $ | 333 | $ | 7 | $ | 326 | ||||||||||||||
| Pretax adjusted operating margin | 31.1 | % | 6.8 | % | 32.6 | % | ||||||||||||||
Net pretax adjusted operating margin (1) | 45.7 | % | 12.1 | % | 48.6 | % | ||||||||||||||
(1) Calculated as net adjusted operating earnings as a percentage of net adjusted operating revenues. | ||||||||||||||||||||
(2) Reflects the acquisition of BMO’s EMEA Asset Management business that closed on November 8, 2021. | ||||||||||||||||||||
| Ameriprise Financial, Inc. | |||||||||||||||||
| Reconciliation Table: Asset Management Segment Operating Results | |||||||||||||||||
| Quarter Ended December 31, | % Over/ (under) | ||||||||||||||||
| (in millions, unaudited) | 2021 | 2020 | |||||||||||||||
| Total net revenues | $ | 1,060 | $ | 798 | 33% | ||||||||||||
| BMO revenues | 59 | — | |||||||||||||||
| Total net revenues excluding BMO | $ | 1,001 | $ | 798 | 25% | ||||||||||||
| Total G&A expenses | $ | 431 | $ | 339 | 27% | ||||||||||||
| BMO G&A expenses | 52 | — | |||||||||||||||
| Total G&A expenses excluding BMO | $ | 379 | $ | 339 | 12% | ||||||||||||
30
| Ameriprise Financial, Inc. | |||||||||||||||||
| Reconciliation Table: Return on Equity (ROE) Excluding Accumulated Other Comprehensive Income “AOCI” | |||||||||||||||||
| Twelve Months Ended December 31, | |||||||||||||||||
| (in millions, unaudited) | 2021 | 2020 | |||||||||||||||
| Net income | $ | 2,760 | $ | 1,534 | |||||||||||||
Less: Adjustments (1) | 36 | (236) | |||||||||||||||
| Adjusted operating earnings | 2,724 | 1,770 | |||||||||||||||
Less: Annual unlocking/loss recognition, net of tax (2) | (6) | (349) | |||||||||||||||
| Adjusted operating earnings excluding Unlocking | $ | 2,730 | $ | 2,119 | |||||||||||||
| Total Ameriprise Financial, Inc. shareholders’ equity | $ | 5,689 | $ | 6,171 | |||||||||||||
| Less: Accumulated other comprehensive income, net of tax | 301 | 301 | |||||||||||||||
| Total Ameriprise Financial, Inc. shareholders’ equity excluding AOCI | 5,388 | 5,870 | |||||||||||||||
| Less: Equity impacts attributable to the consolidated investment entities | 2 | 1 | |||||||||||||||
| Adjusted operating equity | $ | 5,386 | $ | 5,869 | |||||||||||||
| Return on equity excluding AOCI | 51.2 | % | 26.1 | % | |||||||||||||
Adjusted operating return on equity excluding AOCI (3) | 50.6 | % | 30.2 | % | |||||||||||||
| Adjusted operating return on equity excluding AOCI and Unlocking | 50.7 | % | 36.1 | % | |||||||||||||
(1) Adjustments reflect the trailing twelve months' sum of after-tax net realized investment gains/losses, net of deferred sales inducement costs ("DSIC") and deferred acquisition costs ("DAC") amortization, unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long-duration products, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; mean reversion related impacts; block transfer reinsurance transaction impacts; gain on disposal of business; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration/restructuring charges; and the impact of consolidating certain investment entities. After-tax is calculated using the statutory tax rate of 21%. | |||||||||||||||||
(2) After-tax is calculated using the statutory tax rate of 21%. | |||||||||||||||||
(3) Adjusted operating return on equity excluding accumulated other comprehensive income (AOCI) is calculated using the trailing twelve months of earnings excluding the after-tax net realized investment gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long-duration products, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; mean reversion related impacts; block transfer reinsurance transaction impacts; gain on the disposal of business; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration/restructuring charges; the impact of consolidating certain investment entities; and discontinued operations in the numerator, and Ameriprise Financial shareholders' equity excluding AOCI and the impact of consolidating investment entities using a five-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory tax rate of 21%. | |||||||||||||||||
31
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