Fourth quarter 2015 net income(1) per diluted
share was $2.00Operating EPS up 7 percent to $2.47
Full Year 2015 net income(1) per diluted share
was $8.48Operating EPS up 9 percent to $9.32
Fourth quarter 2015 return on equity excluding
AOCI was 21.4 percentOperating ROE excluding AOCI increased 130 bps
to a record high 24.3 percent
Ameriprise Financial, Inc. (NYSE: AMP) today reported fourth
quarter 2015 net income(1) of $357 million, or $2.00 per diluted
share. Operating earnings were $441 million, with operating
earnings per diluted share increasing to $2.47, up 7 percent.
Operating net revenues were flat at $3.0 billion reflecting flat
and volatile equity markets and continued low interest rates, which
were offset by asset management performance fees.
Operating expenses were $2.4 billion, up 1 percent from a year
ago. General and administrative expenses increased 4 percent
primarily associated with performance fees and collateralized loan
obligation (CLO) liquidation benefits – these items accounted for 3
percent of the 4 percent increase. Overall, expenses remain well
controlled.
On a full-year basis, the company generated strong operating
results during a period of heightened volatility and continued low
interest rates. Compared to 2014, operating net revenues grew 1
percent to $11.7 billion, operating earnings grew 3 percent to $1.7
billion and operating earnings per diluted share increased 9
percent to $9.32.
In the quarter, the company continued to deliver a strong return
to shareholders through share repurchases and dividends of $569
million. For the full year, the company returned over $2.1 billion
to shareholders, representing 125 percent of operating
earnings.
“While the global economic and market environment continued to
present headwinds, Ameriprise delivered a solid fourth quarter,”
said Jim Cracchiolo, chairman and chief executive officer.
“Increased volatility and investor concerns reinforce the
importance of the advice and solutions Ameriprise provides to our
clients.”
“Our diversified business and financial foundation provide the
strength and flexibility to serve our clients, invest through
market cycles and return capital to shareholders. In fact, for the
fifth consecutive year we returned more than 100 percent of our
operating earnings to shareholders. And we delivered a record high
operating return on equity of 24.3 percent.”
(1) Net income represents net income from continuing operations
attributable to Ameriprise Financial.
Ameriprise Financial, Inc.Fourth
Quarter and Full Year Summary
(in millions, except per share amounts,
unaudited)
Quarter EndedDecember
31,
Year EndedDecember 31,
2015 2014
% Better/(Worse)
2015 2014
% Better/(Worse)
Net income from continuing operations
attributable to Ameriprise Financial
$ 357 $ 426 (16 )% $ 1,562 $ 1,621 (4 )%
Adjustments, net of tax (1)
(see reconciliation on p.
11)
84 14 154 41 Operating earnings (2) $
441 $ 440 — % $ 1,716 $ 1,662 3 % Earnings Per
Diluted Share Income from continuing operations $ 2.00 $
2.23 (10 )% $ 8.48 $ 8.31 2 %
Adjustments, net of tax (1)
(see reconciliation on p.
11)
0.47 0.07 0.84 0.21 Operating earnings
(2) $ 2.47 $ 2.30 7 % $ 9.32 $ 8.52 9 % Weighted average
common shares outstanding: Basic 176.6 187.9 181.7 191.6 Diluted
178.9 191.2 184.2 195.0
(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 investment gains or
losses, net of deferred sales inducement costs (“DSIC”) and
deferred acquisition costs (“DAC”) amortization, unearned revenue
amortization and the reinsurance accrual; integration and
restructuring charges; the 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; the market impact of
hedges to offset interest rate changes on unrealized gains or
losses for certain investments; and income or loss from
discontinued operations.
Fourth quarter operating earnings included the following
after-tax items:
Quarter EndedDecember
31,
Per Diluted ShareQuarter
EndedDecember 31,
(in millions, except per share amounts, unaudited)
2015
2014 2015 2014 Tax items
$ 26 $ 32 $ 0.15 $ 0.17 Auto & Home reserve strengthening (1)
(37 ) (39 ) (0.21 ) (0.20 ) Life insurance assumption change (1) 18
— 0.10 —
Market impact on DAC/DSIC (1)
$ 4 $ 5 $ 0.02 $ 0.03
(1) After-tax is calculated using the
statutory tax rate of 35%.
Taxes
The fourth quarter 2015 operating effective tax rate was 20.1
percent, reflecting the impact of a non-recurring dividends
received deduction benefit recorded in the quarter. The operating
effective tax rate in the year ago quarter was 20.3 percent,
including different discrete tax items that reduced the tax rate.
The 2015 full year operating effective tax rate was 23.9
percent.
Fourth Quarter 2015 Business Highlights
- Total assets under management and
administration were $777 billion as Ameriprise advisor client net
inflows were more than offset by asset management outflows, market
depreciation and a $7 billion unfavorable foreign exchange
impact.
- Advice & Wealth Management advisor
client assets increased 1 percent from a year ago to $447 billion
from continued strength in fee-based investment advisory net
inflows, including $2.1 billion of net inflows in the quarter that
were partially offset by market depreciation.
- On a trailing 12-month basis, operating
net revenue per advisor grew 4 percent to $514,000.
- Total advisors were 9,789 reflecting
strong advisor retention and ongoing experienced advisor
recruiting. The company added 82 experienced, productive advisors
in the quarter.
- Asset Management segment AUM declined
to $472 billion, primarily driven by net outflows during the year
and the unfavorable impact of foreign exchange rates.
- Investment performance remained strong
with 116 four- and five-star funds at Columbia Threadneedle
Investments.
- Columbia Threadneedle was named the
U.K.’s best-performing fund group over the last decade by FE
Trustnet.
- Columbia Threadneedle launched the
Threadneedle Ethical U.K. Equity Fund to further expand its suite
of responsible investment solutions.
- Variable annuity policyholder account
balances were $74 billion and sales grew 12 percent driven by new
benefit riders.
- Excess capital was approximately $2.5
billion after the company repurchased 4.1 million shares of common
stock in the quarter for $450 million and paid $119 million in
quarterly dividends. The company returned over $2.1 billion to
shareholders during the year. The company also holds $250 million
of additional capital above required levels, primarily for variable
annuity products.
- For the year, the company returned 125
percent of operating earnings to shareholders, reflecting its
strategy of adjusting the level of share repurchases based on the
valuation of the stock.
Ameriprise Financial, Inc.Advice
& Wealth Management Segment Operating Results
(in millions, unaudited)
Quarter EndedDecember
31,
% Better/(Worse)
Year EndedDecember 31,
% Better/(Worse)
2015 2014 2015 2014 Advice
& Wealth Management Net revenues $ 1,266 $ 1,249 1 % $
5,013 $ 4,806 4 % Expenses 1,056 1,037 (2 )%
4,154 4,014 (3 )% Pretax operating earnings $ 210 $ 212 (1
)% $ 859 $ 792 8 % Pretax operating margin 16.6 % 17.0 %
17.1 % 16.5 %
Quarter Ended December 31,
% Better/(Worse)
2015 2014 Retail client assets (billions) $
447 $ 444 1 % Wrap net flows (billions) $ 2.1 $ 3.1 (33 )%
Operating net revenue per branded advisor (trailing 12 months -
thousands) $ 514 $ 496 4 %
Advice & Wealth Management pretax operating earnings
were $210 million as slower market appreciation and volatility
resulted in lower revenue growth, which was offset by continued
effective general and administrative expense management. Fourth
quarter 2015 pretax operating margin was 16.6 percent, reflecting
lower market appreciation and a slowdown in client activity related
to market volatility, compared to 17.0 percent a year ago. For the
full year, pretax operating margin increased to 17.1 percent from
16.5 percent.
Operating net revenues grew 1 percent to $1.3 billion driven by
growth in fee-based accounts from client net inflows partially
offset by lower client activity levels given equity market
volatility and uncertainty in the environment.
Operating expenses increased 2 percent to $1.1 billion as growth
in wrap assets resulted in higher distribution expenses. General
and administrative expenses were flat compared to a year ago.
Total retail client assets increased 1 percent to $447 billion
compared to the prior year as client net inflows and client
acquisition were offset by year-over-year market depreciation.
Underlying business fundamentals and metrics remained strong and
are consistent with the market environment. Wrap net inflows were
$2.1 billion in the quarter, which contributed to a 3 percent
increase in wrap balances to $180 billion. Total advisors were
9,789 reflecting strong retention and another successful recruiting
quarter, with 82 experienced advisors moving their practices to
Ameriprise. The combination of asset growth and client activity
drove a 4 percent increase in operating net revenue per advisor on
a trailing 12-month basis to $514,000.
Ameriprise Financial, Inc.Asset
Management Segment Operating Results
(in millions, unaudited)
Quarter EndedDecember
31,
% Better/(Worse)
Year EndedDecember 31,
% Better/(Worse)
2015 2014 2015 2014
Asset Management Net revenues $ 833 $ 830 — % $ 3,254 $
3,320 (2 )% Expenses 640 632 (1 )% 2,493
2,532 2 % Pretax operating earnings $ 193 $ 198 (3 )% $ 761
$ 788 (3 )% Adjusted net pretax operating margin 36.3 % 40.0
% 38.5 % 39.8 %
Quarter Ended December 31,
% Better/(Worse)
2015 2014 Total segment AUM(1) (billions) $
472 $ 506 (7 )% Columbia Management AUM $ 335 $ 361 (7 )%
Threadneedle AUM $ 142 $ 148 (4 )% Total segment net flows
(billions) $ (0.7 ) $ 5.7 NM Retail net flows $ 6.5 $ 4.9 33 %
Institutional net flows $ (6.9 ) $ 0.3 NM Alternative net flows $
(0.3 ) $ 0.5 NM
(1) Subadvisory eliminations between
Columbia Management and Threadneedle are included in the company’s
Fourth Quarter 2015 Statistical Supplement available at
ir.ameriprise.com.
NM Not Meaningful — variance of greater than 100%
Asset Management pretax operating earnings were $193
million, which included a net benefit from several timing-related
items that were more than offset by lower AUM related to weak
global markets and net outflows. Results in the quarter included
elevated performance fees, CLO liquidation benefits, and higher
year-end related expenses that on a net basis benefited earnings by
approximately $20 million. Fourth quarter adjusted net pretax
operating margin was 36.3 percent compared to 40.0 percent a year
ago.
Operating net revenues were flat compared to a year ago as
performance fees and CLO liquidation benefits were offset by the
impact of lower asset levels. AUM declined 7 percent to $472
billion related to lower market appreciation, net outflows and a
negative foreign exchange translation.
Operating expenses were $640 million and included seasonally
elevated general and administrative expenses relating to higher
performance fees and CLO liquidation, investments in advertising
and the timing of certain other expenses. These growth investments
were partially offset by lower distribution expenses.
Net outflows were $0.7 billion in the quarter, which included
$8.7 billion of reinvested dividends and $6.5 billion of low-fee,
former parent related outflows:
- Elevated outflows in former parent
related assets were largely driven by changes made by a former
affiliated distribution partner that resulted in expected outflows
of low fee institutional assets.
- European retail net inflows were strong
at $1.4 billion in the quarter. Retail flows in the United States
included $1.7 billion of outflows in the Acorn Fund, which more
than offset areas of improved retail flows.
- Excluding outflows from a large client
who redeemed assets for liquidity purposes, underlying third party
institutional flows were positive and the pipeline remains
strong.
Ameriprise Financial, Inc. Annuities Segment
Operating Results (in millions, unaudited)
Quarter EndedDecember
31,
% Better/(Worse)
Year EndedDecember 31,
% Better/(Worse)
2015 2014 2015 2014
Annuities Net revenues $ 627 $ 649 (3 )% $ 2,541 $ 2,591 (2
)% Expenses 475 490 3 % 1,891 1,958 3 %
Pretax operating earnings $ 152 $ 159 (4 )% $ 650 $ 633 3 %
Variable annuity pretax operating earnings $ 129 $ 123 5 % $ 544 $
489 11 % Fixed annuity pretax operating earnings 23
36 (36 )% 106 144 (26 )% Total pretax operating
earnings $ 152 $ 159 (4 )% $ 650 $ 633 3 %
Quarter Ended
December 31,
% Better/(Worse)
2015 2014 Items included in operating
earnings: Market impact on DAC and DSIC (mean reversion) $ 6 $ 7
(14 )% Impact of variable annuity product changes — 2
NM Total annuities impact $ 6 9 (33 )% Variable
annuity ending account balances (billions) $ 74.2 $ 77.0 (4 )%
Variable annuity net flows (millions) $ (245 ) $ (406 ) 40 % Fixed
annuity ending account balances (billions) $ 10.7 $ 12.1 (12 )%
Fixed annuity net flows (millions) $ (296 ) $ (315 ) 6 % NM
Not Meaningful — variance of greater than 100%
Annuities pretax operating earnings were $152 million
primarily reflecting improved variable annuity profitability offset
by lower fixed annuity earnings driven by the continued anticipated
run-off of a block of fixed annuities.
Variable annuity operating earnings were $129 million compared
to $123 million a year ago. Variable annuity cash sales increased
12 percent to $1.3 billion for the quarter, driven by new living
benefit riders. Account balances declined 4 percent to $74 billion
reflecting net outflows in a closed block of annuities sold through
third parties and market depreciation.
Fixed annuity operating earnings declined from $36 million to
$23 million as older policies continue to lapse and the interest
rate environment which remains challenging for investment yields
and limits new sales.
Ameriprise Financial, Inc. Protection Segment
Operating Results (in millions, unaudited)
Quarter EndedDecember
31,
% Better/(Worse)
Year EndedDecember 31,
% Better/(Worse)
2015 2014 2015 2014
Protection Net revenues $ 608 $ 600 1 % $ 2,384 $ 2,287 4 %
Expenses 573 570 (1 )% 2,201 2,041 (8
)% Pretax operating earnings $ 35 $ 30 17 % $ 183 $ 246 (26 )%
Quarter Ended December 31,
% Better/(Worse)
2015 2014 Items included in operating
earnings: Market impact on DAC (mean reversion) $ — $ 1 NM
Actuarial model correction — (7 ) NM Auto & Home reserve
strengthening (57 ) (60 ) 5 % Life insurance assumption change
28 — NM Total protection impact $ (29 ) $ (66 ) 56 %
Life insurance in force (billions) $ 196 $ 196 — % VUL/UL
ending account balances (billions) $ 11.2 $ 11.3 (1 )% Auto &
Home policies in force (thousands) 957 929 3 % NM Not
Meaningful — variance of greater than 100%
Protection pretax operating earnings were $35 million
compared to $30 million a year ago.
Life and Health insurance earnings included a $28 million life
insurance reserve reduction that was a result of an assumption
change. This benefit was partially offset by higher life and LTC
claims, the impact of continued low interest rates, and the
business mix shift from VUL to iUL. VUL/UL cash sales were $91
million, up 7 percent from a year ago, and VUL/UL account balances
declined 1 percent.
Auto and Home had an operating loss in the quarter driven by a
$57 million reserve increase primarily related to the 2014 and
prior accident years for the auto line and a more gradual pace of
anticipated improvement in the book. Results reflected increases in
both frequency and severity, which is consistent with industry
experience.
Performance for the 2015 accident year currently remains in line
with expectations, benefiting from enhancements made to
underwriting and claims practices.
Ameriprise Financial, Inc. Corporate & Other
Segment Operating Results (in millions, unaudited)
Quarter EndedDecember
31,
% Better/(Worse)
Year EndedDecember 31,
% Better/(Worse)
2015 2014 2015 2014
Corporate & Other Net revenues $ 15 $ 1 NM $ 3 $ 4 (25
)% Expenses 53 48 (10 )% 202 234 14 %
Pretax operating loss $ (38 ) $ (47 ) 19 % $ (199 ) $ (230 ) 13 %
NM Not Meaningful — variance of greater
than 100%
Corporate & Other pretax operating loss was $38
million for the quarter compared to a $47 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 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 and the “Risk Factors” discussion
included in Part II, Item 1A and elsewhere in our Quarterly Report
on Form 10-Q for the quarter ended September 30, 2015.
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 Annual
Report on Form 10-K for the year ended December 31, 2015. For
information about Ameriprise Financial entities, please refer to
the Fourth 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.
Reconciliation Tables
Ameriprise Financial,
Inc.Reconciliation Table: Earnings
Quarter EndedDecember
31,
Per Diluted ShareQuarter
EndedDecember 31,
(in millions, except per share amounts, unaudited)
2015
2014 2015 2014 Net income
attributable to Ameriprise Financial $ 357 $ 425 $ 2.00 $ 2.22
Less: Loss from discontinued operations, net of tax —
(1 ) — (0.01 )
Net income from continuing
operations attributable to Ameriprise Financial
357 426 2.00 2.23
Add: Integration/restructuring charges,
net of tax(1)
— — — —
Add: Market impact on variable
annuity guaranteed benefits, net of tax(1)
91 21 0.51 0.11
Add: Market impact on indexed universal
life benefits, net of tax(1)
— 10 — 0.05
Add: Market impact of hedges on
investments, net of tax(1)
(7 ) — (0.04 ) —
Add: Net realized investment (gains)
losses, net of tax(1)
— (17 ) — (0.09 ) Operating earnings $
441 $ 440 $ 2.47 $ 2.30 Weighted average common shares
outstanding: Basic 176.6 187.9 Diluted 178.9 191.2
(1) Calculated using the statutory tax
rate of 35%.
Ameriprise Financial,
Inc.Reconciliation Table: Earnings
Year EndedDecember 31,
Per Diluted ShareYear
EndedDecember 31,
(in millions, except per share amounts, unaudited)
2015
2014 2015 2014 Net income
attributable to Ameriprise Financial $ 1,562 $ 1,619 $ 8.48 $ 8.30
Less: Loss from discontinued operations, net of tax —
(2 ) — (0.01 )
Net income from continuing
operations attributable to Ameriprise Financial
1,562 1,621 8.48 8.31 Add: Integration/restructuring charges, net
of tax(1) 3 — 0.02 —
Add: Market impact on variable
annuity guaranteed benefits, net of tax(1)
139 61 0.75 0.31 Add: Market impact on indexed universal life
benefits, net of tax(1) 1 4 0.01 0.02 Add: Market impact of hedges
on investments, net of tax(1) 14 — 0.08 — Add: Net realized
investment (gains) losses, net of tax(1) (3 ) (24 )
(0.02 ) (0.12 ) Operating earnings $ 1,716 $ 1,662 $
9.32 $ 8.52 Weighted average common shares outstanding:
Basic 181.7 191.6 Diluted 184.2 195.0
(1) Calculated using the statutory tax
rate of 35%.
Ameriprise Financial,
Inc.Reconciliation Table: Total Net Revenues
Quarter EndedDecember
31,
Year EndedDecember 31,
(in millions, unaudited)
2015 2014 2015
2014 Total net revenues $ 3,103 $ 3,089 $ 12,170 $
12,268 Less: CIEs revenue 113 108 446 651 Less: Net realized
investment gains (losses) (1 ) 27 4 37 Less: Market impact on
indexed universal life benefits 2 (11 ) 7 (11 ) Less: Market impact
of hedges on investments 11 — (21 ) —
Operating total net revenues $ 2,978 $ 2,965 $ 11,734 $ 11,591
Ameriprise Financial,
Inc.Reconciliation Table: Total Expenses
Quarter EndedDecember
31,
Year EndedDecember 31,
(in millions, unaudited)
2015 2014 2015
2014 Total expenses $ 2,657 $ 2,531 $ 10,028 $ 9,721 Less:
CIEs expenses 90 80 321 270 Less: Integration/restructuring charges
1 — 5 — Less: Market impact on variable annuity guaranteed benefits
139 34 214 94 Less: Market impact on indexed universal life
benefits 1 4 8 (5 ) Operating expenses
$ 2,426 $ 2,413 $ 9,480 $ 9,362
Ameriprise Financial,
Inc.Reconciliation Table: Pretax Operating Earnings
Quarter EndedDecember
31,
Year EndedDecember 31,
(in millions, unaudited)
2015 2014 2015
2014 Operating total net revenues $ 2,978 $ 2,965 $ 11,734 $
11,591 Operating expenses 2,426 2,413 9,480
9,362 Pretax operating earnings $ 552 $ 552 $ 2,254 $ 2,229
Ameriprise Financial,
Inc.Reconciliation Table: General and Administrative
Expense
Quarter Ended December 31, (in millions, unaudited)
2015 2014 General and administrative
expense $ 794 $ 775 Less: CIEs expenses 8 20 Less:
Integration/restructuring charges 1 — Operating
general and administrative expense $ 785 $ 755
Ameriprise Financial, Inc. Reconciliation Table:
Effective Tax Rate Quarter Ended December 31,
2015 (in millions, unaudited)
GAAP
Operating Income from continuing operations before income
tax provision $ 446 $ 552 Less: Pretax income attributable to
noncontrolling interests 23 —
Income from continuing operations before
income tax provision excluding consolidated investment entities
$ 423 $ 552 Income tax provision from continuing operations $ 66 $
111 Effective tax rate 14.8 % 20.1 % Effective tax rate
excluding noncontrolling interests 15.6 % 20.1 %
Ameriprise Financial, Inc. Reconciliation Table:
Effective Tax Rate Quarter Ended December 31,
2014 (in millions, unaudited)
GAAP Operating
Income from continuing operations before income tax provision $ 558
$ 552 Less: Pretax income attributable to noncontrolling interests
28 —
Income from continuing operations before
income tax provision excluding consolidated investment entities
$ 530 $ 552 Income tax provision from continuing operations $ 104 $
112 Effective tax rate 18.7 % 20.3 % Effective tax rate
excluding noncontrolling interests 19.7 % 20.3 %
Ameriprise Financial, Inc. Reconciliation Table:
Effective Tax Rate Year Ended December 31, 2015
(in millions, unaudited)
GAAP Operating Income from
continuing operations before income tax provision $ 2,142 $ 2,254
Less: Pretax income attributable to noncontrolling interests
125 —
Income from continuing operations before
income tax provision excluding consolidated investment entities
$ 2,017 $ 2,254 Income tax provision from continuing operations $
455 $ 538 Effective tax rate 21.3 % 23.9 % Effective tax
rate excluding noncontrolling interests 22.6 % 23.9 %
Ameriprise Financial,
Inc.Reconciliation Table: Asset Management Adjusted Net
Pretax Operating Margin
Quarter Ended December 31,
(in millions, unaudited)
2015 2014 Operating total net revenues $ 833 $
830 Less: Distribution pass through revenues 211 231 Less:
Subadvisory and other pass through revenues 107 99
Adjusted operating revenues $ 515 $ 500 Pretax operating
earnings $ 193 $ 198 Less: Operating net investment income 12 6
Add: Amortization of intangibles 6 8 Adjusted
operating earnings $ 187 $ 200 Adjusted net pretax operating
margin 36.3 % 40.0 %
Ameriprise Financial,
Inc. Reconciliation Table: Asset Management Adjusted Net
Pretax Operating Margin Year Ended December 31,
(in millions, unaudited)
2015 2014 Operating total
net revenues $ 3,254 $ 3,320 Less: Distribution pass through
revenues 862 929 Less: Subadvisory and other pass through revenues
407 400 Adjusted operating revenues $ 1,985 $ 1,991
Pretax operating earnings $ 761 $ 788 Less: Operating net
investment income 23 30 Add: Amortization of intangibles 27
34 Adjusted operating earnings $ 765 $ 792 Adjusted
net pretax operating margin 38.5 % 39.8 %
Ameriprise Financial,
Inc.Reconciliation Table: Return on Equity (ROE) Excluding
AccumulatedOther Comprehensive Income “AOCI”
Twelve Months EndedDecember
31,
(in millions, unaudited)
2015 2014 Net income attributable to
Ameriprise Financial $ 1,562 $ 1,619 Less: Loss from discontinued
operations, net of tax — (2 )
Net income from continuing operations
attributable to Ameriprise Financial, as reported
1,562 1,621 Less: Adjustments (1) (154 ) (41 )
Operating earnings $ 1,716 $ 1,662 Total Ameriprise
Financial, Inc. shareholders’ equity $ 7,808 $ 8,270 Less:
Accumulated other comprehensive income, net of tax 516
734 Total Ameriprise Financial, Inc. shareholders’ equity
excluding AOCI 7,292 7,536 Less: Equity impacts attributable to the
consolidated investment entities 216 311 Operating
equity $ 7,076 $ 7,225 Return on equity excluding AOCI 21.4
% 21.5 % Operating return on equity excluding AOCI (2) 24.3 % 23.0
%
(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; 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; the market impact of
hedges to offset interest rate changes on unrealized gains or
losses for certain investments; 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 investment gains/losses, net of deferred sales inducement
costs (“DSIC”) and deferred acquisition costs (“DAC”) amortization,
unearned revenue amortization and the reinsurance accrual; 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; the market impact of hedges to offset interest rate
changes on unrealized gains or losses for certain investments;
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 December 31,
% Better/(Worse)
2015 2014 Revenues Management
and financial advice fees $ 1,499 $ 1,489 1 % Distribution fees 458
484 (5 ) Net investment income 460 409 12 Premiums 374 359 4 Other
revenues 321 355 (10 ) Total revenues 3,112 3,096 1
Banking and deposit interest expense 9 7 (29 )
Total net revenues 3,103 3,089 —
Expenses
Distribution expenses 816 827 1 Interest credited to fixed accounts
165 184 10 Benefits, claims, losses and settlement expenses 714 568
(26 ) Amortization of deferred acquisition costs 52 86 40 Interest
and debt expense 116 91 (27 ) General and administrative expense
794 775 (2 )
Total expenses 2,657 2,531 (5 )
Income from continuing operations before income tax provision 446
558 (20 ) Income tax provision 66 104 37 Income from
continuing operations 380 454 (16 ) Loss from discontinued
operations, net of tax — (1 ) NM
Net
income 380 453 (16 ) Less: Net income attributable to
noncontrolling interests 23 28 (18 )
Net
income attributable to Ameriprise Financial $ 357 $ 425 (16 )
NM Not Meaningful — variance of greater than 100%
Ameriprise Financial, Inc. Consolidated GAAP
Results (in millions, unaudited)
Year Ended
December 31,
% Better/(Worse)
2015 2014 Revenues Management and
financial advice fees $ 5,950 $ 5,810 2 % Distribution fees 1,847
1,894 (2 ) Net investment income 1,688 1,741 (3 ) Premiums 1,455
1,385 5 Other revenues 1,260 1,466 (14 ) Total
revenues 12,200 12,296 (1 ) Banking and deposit interest expense
30 28 (7 )
Total net revenues 12,170 12,268 (1
)
Expenses Distribution expenses 3,276 3,236 (1 ) Interest
credited to fixed accounts 668 713 6 Benefits, claims, losses and
settlement expenses 2,261 1,982 (14 ) Amortization of deferred
acquisition costs 354 367 4 Interest and debt expense 387 328 (18 )
General and administrative expense 3,082 3,095 —
Total expenses 10,028 9,721 (3 ) Income from continuing
operations before income tax provision 2,142 2,547 (16 ) Income tax
provision 455 545 17 Income from continuing
operations 1,687 2,002 (16 ) Loss from discontinued operations, net
of tax — (2 ) NM
Net income 1,687 2,000
(16 ) Less: Net income attributable to noncontrolling interests
125 381 (67 )
Net income attributable to
Ameriprise Financial $ 1,562 $ 1,619 (4 ) NM Not
Meaningful — variance of greater than 100%
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160127006289/en/
Ameriprise FinancialInvestor Relations:Alicia A. Charity,
612-671-2080alicia.a.charity@ampf.comorChad J. Sanner,
612-671-4676chad.j.sanner@ampf.comorMedia Relations:Paul W.
Johnson, 612-671-0625paul.w.johnson@ampf.com
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