First quarter 2016 net income(1) per diluted
share was $2.09Operating EPS was $2.17
First quarter 2016 return on equity excluding
AOCI was 21.5 percentOperating ROE excluding AOCI increased 110 bps
to 24.2 percent
The company raised its regular quarterly
dividend 12 percent to $0.75 per share
Ameriprise Financial, Inc. (NYSE:AMP) today reported first
quarter 2016 net income(1) of $364 million, or $2.09 per diluted
share. Operating earnings were $378 million, with operating
earnings per diluted share of $2.17. Operating results include
previously announced unfavorable items of $0.09 per share.
Operating net revenues of $2.8 billion were down 4 percent,
reflecting the dislocation in equity markets during the quarter,
which caused a lower level of average assets under management,
resulting in lower fee revenue. The dislocation in equity markets
also impacted revenues on a sequential basis.
Operating expenses of $2.3 billion were down 2 percent from a
year ago as a result of lower distribution expenses and well
controlled general and administrative expenses. General and
administrative expenses decreased 2 percent, primarily associated
with ongoing reengineering and disciplined expense control in
response to the challenging market environment during the quarter.
Overall, the company will continue to manage expenses tightly in
response to the market environment while maintaining targeted
growth investments.
In the quarter, the company continued to deliver a strong return
to shareholders through share repurchases and dividends of $568
million, returning 150 percent of its operating earnings.
“Ameriprise performed well in a challenging market environment
for the industry,” said Jim Cracchiolo, chairman and chief
executive officer. “With equity market declines and high volatility
during the quarter, we continued to deliver solid underlying
results as we focused on supporting our clients and advisors
through this period and providing important perspective for the
long-term. While client activity slowed given the markets, we
continued to generate solid net inflows in fee-based investment
advisory accounts and strong investment performance.”
“Our strong capital position and financial foundation provides
important flexibility as we invest through market cycles and return
capital to shareholders. In the quarter, we nearly doubled the
number of shares of common stock we repurchased compared to a year
ago, and today we announced another increase to our regular
quarterly dividend, up 12 percent, representing the ninth increase
over the past seven years.”
(1) Net income represents net income attributable to Ameriprise
Financial.
Ameriprise Financial, Inc. First Quarter
Summary
(in millions, except per share amounts,
unaudited)
Quarter EndedMarch 31,
Per Diluted ShareQuarter
EndedMarch 31,
2016 2015
%Better/(Worse)
2016 2015
%Better/(Worse)
Net income attributable to Ameriprise Financial $ 364 $ 393 (7 )% $
2.09 $ 2.08 —
Adjustments, net of tax (1) (see
reconciliation on p. 11)
14 19 0.08 0.10 Operating earnings (2)
$ 378 $ 412 (8 )% $ 2.17 $ 2.18 — Weighted average common shares
outstanding: Basic 172.6 186.3 Diluted 174.4 189.1
(1) After-tax is calculated using the
statutory tax rate of 35%
(2) The company believes the presentation
of operating earnings best represents the economics of the
business. Operating earnings, after-tax, exclude the consolidation
of certain investment entities; net realized 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.
First quarter 2016 operating earnings included the following
after-tax items:
Per Diluted Share Quarter
Ended Quarter Ended March 31, 2016
March 31, 2016 (in millions, except per share amounts,
unaudited) Auto & Home excess catastrophe losses (1) $ (9 ) $
(0.05 ) Market impact on SOP reserves (1) (2) (2 ) (0.01 ) Market
impact on DAC/DSIC (1)
(5 )
(0.03 ) Total items (3) $ (16 ) $ (0.09 ) (1) After-tax is
calculated using the statutory tax rate of 35% (2) Reserves
for insurance features in non-traditional contracts (3)
Previously announced items
Taxes
The first quarter 2016 operating effective tax rate was 23.9
percent, compared to 26.7 percent a year ago. The company estimates
that its full year 2016 operating effective tax rate will be in the
24 to 26 percent range.
First Quarter 2016 Business Highlights
The company’s average weighted equity index (WEI), which is a
proxy for equity movements on AUM, declined 8 percent
year-over-year and 6 percent sequentially from the fourth quarter
of 2015. The market decline and high volatility impacted AUM and
transactional fee revenue.
- Total assets under management and
administration were $773 billion as Ameriprise advisor client net
inflows were more than offset by market depreciation and asset
management outflows.
- Advice & Wealth Management advisor
client assets were $451 billion, reflecting continued strength in
fee-based investment advisory net inflows, including $1.8 billion
of net inflows in the quarter.
- On a trailing 12-month basis, operating
net revenue per advisor grew 1 percent to $510,000, reflecting high
market volatility and lower transactional client activity.
- Total advisors were 9,766, reflecting
strong advisor retention and ongoing experienced advisor
recruiting. The company added 70 experienced, productive advisors
in the quarter.
- Asset Management segment AUM declined
to $464 billion, primarily driven by net outflows. Outflows in the
quarter were primarily in lower-fee portfolios.
- Investment performance remained strong
with 115 four- and five-star funds at Columbia Threadneedle
Investments.
- Five Columbia funds received 2016
Lipper Fund Awards as top-performing mutual funds in their
respective Lipper classifications for the period ended Dec. 31,
2015.
- Ameriprise ranked fifth out of 20 firms
in the 2016 J.D. Power U.S. Full Service Investor Satisfaction
StudySM.
- Variable annuity policyholder account
balances were $74 billion with sales of $1.1 billion in the
quarter.
- Excess capital was more than $2.0
billion after the company repurchased 5.1 million shares of common
stock in the quarter for $451 million, up from 2.6 million shares a
year ago, and paid $117 million in quarterly dividends.
- The company increased its regular
quarterly dividend 12 percent to $0.75 per share payable on May 20,
2016 to shareholders of record as of May 9, 2016.
- The company returned 150 percent of
operating earnings to shareholders during the quarter, 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 Ended March 31,
% Better/(Worse)
2016 2015 Advice & Wealth
Management Net revenues $ 1,198 $ 1,228 (2 )% Expenses
993 1,018 2 Pretax operating earnings $ 205
$ 210 (2 ) Pretax operating margin 17.1 % 17.1
%
Quarter Ended March 31,
% Better/(Worse)
2016 2015 Retail client assets (billions) $ 451 $ 453
— Wrap net flows (billions) $ 1.8 $ 2.8 (35 )% Operating net
revenue per branded advisor (trailing 12 months - thousands) $ 510
$ 505 1 %
Advice & Wealth Management pretax operating earnings
were $205 million as the company’s fee-based assets were impacted
by lower average market levels resulting in lower revenues, which
were partially offset by continued effective general and
administrative expense management. While client net inflows
remained strong, earnings were impacted by lower transactional
volume given the volatile and uncertain markets. First quarter 2016
pretax operating margin was 17.1 percent, flat compared to a year
ago.
Operating net revenues of $1.2 billion declined 2 percent as
lower average equity markets reduced average client asset levels
and lowered client activity levels given the uncertainty in the
market environment.
Operating expenses declined 2 percent to $1.0 billion as lower
distribution expenses reflected the slowdown in revenues. General
and administrative expenses were flat compared to a year ago — the
company will continue to tightly manage expenses while maintaining
targeted growth investments.
Total retail client assets were essentially flat at $451
billion, 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 $1.8 billion in the
quarter, which contributed to a 2 percent increase in wrap balances
to $183 billion. Total advisors were 9,766 reflecting strong
retention and another successful recruiting quarter, with 70
experienced advisors moving their practices to Ameriprise. The
combination of asset growth and client activity drove a 1 percent
increase in operating net revenue per advisor on a trailing
12-month basis to $510,000.
Ameriprise Financial, Inc. Asset Management
Segment Operating Results (in millions, unaudited)
Quarter Ended March 31,
% Better/(Worse)
2016 2015 Asset Management Net
revenues $ 724 $ 807 (10 )% Expenses 575 616
7 Pretax operating earnings $ 149 $ 191 (22 )
Adjusted net pretax operating margin 34.7 % 39.7 %
Quarter Ended March 31,
% Better/(Worse)
2016 2015 Total segment AUM (billions) $ 464 $ 506 (8
)% Total segment net flows (billions) $ (7.5 ) $ (5.8 ) (28
)% Global Retail net flows, excl. former parent flows $ (2.6
) $ (2.4 ) (6 )% Global Institutional net flows, excl. former
parent flows $ (0.6 ) $ (1.9 ) 72 % Former parent related flows $
(4.3 ) $ (1.5 ) NM
NM Not Meaningful — variance of greater than 100%
Asset Management pretax operating earnings were $149
million, reflecting lower average AUM related to lower average
global markets and net outflows. Average AUM also declined
sequentially after being impacted by the lower average markets,
which led to lower revenues. As noted previously, the company’s
average weighted equity index (WEI), which is a proxy for equity
AUM, declined 8 percent year-over-year and 6 percent sequentially.
Given the significant movement in equity markets, earnings for the
quarter were in line with management’s expectations. First quarter
adjusted net pretax operating margin was 34.7 percent compared to
39.7 percent a year ago.
Operating net revenues of $724 million were down compared to a
year ago, reflecting the impact of lower asset levels. AUM declined
8 percent to $464 billion from market depreciation and net
outflows, which were primarily in lower-fee portfolios.
Operating expenses of $575 million declined 7 percent due to
well managed general and administrative expenses and lower
distribution expenses.
Net outflows were $7.5 billion in the quarter and were largely
driven by outflows in lower-fee mandates, as follows:
- Elevated outflows of $5.8 billion in
lower-fee assets in the quarter, included:
- $4.3 billion of former parent related
assets, which were largely driven by changes made to fixed income
IMA accounts by a former affiliated distribution partner that
resulted in an expected $3.2 billion outflow of institutional
assets.
- $1.1 billion from the termination of a
former subadvisor and $0.4 billion in other insurance
portfolios.
- Outflows of $1.1 billion from a third
party institutional client that redeemed assets for liquidity
purposes – underlying third-party institutional flows were
positive.
- While U.S. retail flows were
challenging in the quarter consistent with the industry, outflows
in the Acorn Fund moderated to $0.6 billion. European retail flows
were slightly negative and reflected the volatile market
environment.
Ameriprise Financial, Inc. Annuities Segment
Operating Results (in millions,
unaudited)
Quarter Ended March 31,
% Better/(Worse)
2016 2015 Annuities Net revenues
$ 596 $ 631 (6 )% Expenses 472 459 (3 )
Pretax operating earnings $ 124 $ 172 (28 )
Variable annuity pretax operating earnings $ 100 $ 144 (31 )% Fixed
annuity pretax operating earnings 24 28
(14 ) Total pretax operating earnings $ 124 $ 172 (28
) Items included in operating earnings: Market impact on DAC
and DSIC (mean reversion) $ (6 ) $ 10 NM Market impacts on SOP
reserves (3 ) 8 NM Total annuities impact $ (9
) $ 18 NM
Quarter Ended March 31,
% Better/(Worse)
2016 2015 Variable annuity ending account balances
(billions) $ 74.2 $ 77.9 (5 )% Variable annuity net flows
(millions) $ (311 ) $ (385 ) 19 % Fixed annuity ending account
balances (billions) $ 10.5 $ 11.7 (10 )% Fixed annuity net flows
(millions) $ (249 ) $ (565 ) 56 %
NM Not Meaningful — variance of greater
than 100%
Annuities pretax operating earnings were $124 million,
primarily reflecting lower average account balances due to markets,
as well as the market impact on DAC, DSIC and SOP reserves.
Earnings were in line with expectations given the market
fluctuations.
Variable annuity operating earnings were $100 million compared
to $144 million a year ago. The year-over-year decline included an
impact of approximately $16 million due to low interest rates and
average account balances being lower in the quarter due to market
levels, leading to lower mortality and expense fees. In addition,
there was a $27 million reduction in operating earnings compared to
a year ago due to the market impact on DAC, DSIC and SOP reserves.
Variable annuity cash sales remained strong at $1.1 billion in the
quarter. Account balances declined 5 percent to $74 billion,
primarily reflecting net outflows in a closed block of annuities
sold through third parties and market depreciation.
Fixed annuity operating earnings declined from $28 million to
$24 million as older policies continue to lapse and the interest
rate environment remains challenging for investment yields.
Ameriprise Financial, Inc. Protection Segment
Operating Results (in millions, unaudited)
Quarter Ended March 31,
% Better/(Worse)
2016 2015 Protection Net
revenues $ 608 $ 590 3 % Expenses 539 539
— Pretax operating earnings $ 69 $ 51 35
Items included in operating earnings: Market impact on DAC
(mean reversion) $ (1 ) $ 1 NM LTC reserves — (32 ) NM L&H
reinsurance recapture and model changes 6 — NM Disability income
discount rate change — 7 NM Auto and home catastrophe losses (1)
(23 ) (12 ) (92 )% Total protection impact $ (18 ) $
(36 ) 50 %
Quarter Ended March 31,
% Better/(Worse)
2016 2015 Life insurance in force (billions) $ 196 $
196 — VUL/UL ending account balances (billions) $ 11.2 $ 11.4 (2 )%
Auto & Home policies in force (thousands) 957 943 1 %
(1) Q1 2015 includes $4 million related to
2014 catastrophe losses
NM Not Meaningful — variance of greater than 100%
Protection pretax operating earnings were $69 million
compared to $51 million a year ago. Excluding the noted items
above, earnings were flat compared to last year.
Life and Health insurance earnings were solid. Life and Health
earnings continue to be impacted by the low interest rate
environment. Claims experience was within expected ranges. VUL/UL
cash sales were $66 million, flat compared to a year ago, and
VUL/UL account balances declined 2 percent.
Auto and Home had an operating loss in the quarter driven by $14
million of higher than expected catastrophe losses, primarily from
hail and wind storms in Texas. Excluding the excess catastrophe
losses, Auto and Home was marginally profitable and the company is
seeing improvement in overall loss trends in the quarter. The
performance for the 2015 and prior accident years currently remains
in line with expectations, benefiting from enhancements made to
underwriting, pricing and claims practices.
Ameriprise Financial, Inc. Corporate & Other
Segment Operating Results (in millions, unaudited)
Quarter Ended March 31,
% Better/(Worse)
2016 2015 Corporate & Other
Net revenues $ 2 $ (6 ) NM Expenses 52 56
7 % Pretax operating loss $ (50 ) $ (62 ) 19 NM Not
Meaningful — variance of greater than 100%
Corporate & Other pretax operating loss was $50
million for the quarter compared to a $62 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 company’s management of expenses;
- the statements in this news release
concerning the company’s operating effective tax rate;
- 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 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, 2015
available at ir.ameriprise.com.
The financial results discussed in this news release represent
past performance only, which may not be used to predict or project
future results. The financial results and values presented in this
news release and the below-referenced Statistical Supplement are
based upon asset valuations that represent estimates as of the date
of this news release and may be revised in the company’s Quarter
Report on Form 10-Q for the quarter ended March 31, 2016. For
information about Ameriprise Financial entities, please refer to
the First Quarter 2016 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 Per Diluted
Share Quarter Ended Quarter Ended March
31, March 31, (in millions, except per share amounts,
unaudited)
2016 2015 2016
2015 Net income attributable to Ameriprise Financial
$ 364 $ 393 $ 2.09 $ 2.08 Less: Net income (loss) attributable to
consolidated investment entities (1 ) — — — Add: Market impact on
variable annuityguaranteed benefits, net of tax(1) (11 ) 22 (0.06 )
0.12 Add: Market impact on indexed universal life benefits, net of
tax(1) (12 ) 4 (0.07 ) 0.02 Add: Market impact of hedges on
investments, net of tax(1) 26 — 0.15 — Add: Net realized (gains)
losses, net of tax(1) 10 (7 ) 0.06
(0.04 ) Operating earnings $ 378 $ 412
$ 2.17 $ 2.18 Weighted average common shares
outstanding: Basic 172.6 186.3 Diluted 174.4 189.1 (1)
Calculated using the statutory tax rate of 35%.
Ameriprise Financial, Inc. Reconciliation Table: Total
Net Revenues Quarter Ended March
31, (in millions, unaudited)
2016
2015 Total net revenues $ 2,765 $ 3,053 Less: CIEs revenue
24 149 Less: Net realized gains (losses) (16 ) 10 Less: Market
impact on indexed universal life benefits 9 (4 ) Less: Market
impact of hedges on investments (40 ) —
Operating total net revenues $ 2,788 $ 2,898
Ameriprise Financial, Inc. Reconciliation Table:
Total Expenses Quarter Ended March
31, (in millions, unaudited)
2016
2015 Total expenses $ 2,290 $ 2,435 Less: CIEs expenses 26
63 Less: Market impact on variable annuity guaranteed benefits (17
) 34 Less: Market impact on indexed universal life benefits
(10 ) 2 Operating expenses $ 2,291 $ 2,336
Ameriprise Financial, Inc. Reconciliation Table:
Pretax Operating Earnings Quarter Ended
March 31, (in millions, unaudited)
2016
2015 Operating total net revenues $ 2,788 $ 2,898 Operating
expenses 2,291 2,336 Pretax operating earnings $ 497
$ 562
Ameriprise Financial, Inc.
Reconciliation Table: General and Administrative Expense
Quarter
Ended
March 31, (in millions, unaudited)
2016
2015 General and administrative expense $ 727 $ 752 Less:
CIEs expenses — 10 Operating general and
administrative expense $ 727 $ 742
Ameriprise
Financial, Inc. Reconciliation Table: Effective Tax Rate
Quarter Ended March 31,
2016
(in millions, unaudited)
GAAP Operating
Pretax income $ 475 $ 497 Income tax provision $ 111 $ 119
Effective tax rate 23.3 % 23.9 %
Ameriprise
Financial, Inc. Reconciliation Table: Effective Tax Rate
Quarter Ended March 31, 2015 (in millions,
unaudited)
GAAP Operating Pretax income
$ 618 $ 562 Less: Pretax income attributable to noncontrolling
interests 86 — Pretax income excluding
consolidated investment entities $ 532 $ 562 Income
tax provision $ 139 $ 150 Effective tax rate 22.5 % 26.7 %
Effective tax rate excluding noncontrolling interests 26.1 % 26.7 %
Ameriprise Financial, Inc. Reconciliation
Table: Asset Management Adjusted Net Pretax Operating Margin
Quarter Ended March
31,
(in millions, unaudited)
2016 2015
Operating total net revenues $ 724 $ 807 Less: Distribution pass
through revenues 199 218 Less: Subadvisory and other pass through
revenues 87 103 Adjusted operating
revenues $ 438 $ 486 Pretax operating earnings
$ 149 $ 191 Less: Operating net investment income 3 6 Add:
Amortization of intangibles 6 8
Adjusted operating earnings $ 152 $ 193
Adjusted net pretax operating margin 34.7 % 39.7 %
Ameriprise Financial, Inc. Reconciliation Table: Return
on Equity (ROE) Excluding Accumulated Other Comprehensive
Income “AOCI”
Twelve Months
Ended
March 31, (in millions, unaudited)
2016
2015 Net income attributable to Ameriprise Financial $ 1,533
$ 1,612 Less: Loss from discontinued operations, net of tax
— (1 )
Net income from continuing operations
attributable to Ameriprise Financial, as reported
1,533 1,613 Less: Adjustments (1) (149 ) (54 )
Operating earnings $ 1,682 $ 1,667 Total
Ameriprise Financial, Inc. shareholders’ equity $ 7,602 $ 8,270
Less: Accumulated other comprehensive income, net of tax 472
755 Total Ameriprise Financial, Inc.
shareholders’ equity excluding AOCI 7,130 7,515 Less: Equity
impacts attributable to the consolidated investment entities
170 300 Operating equity $ 6,960 $
7,215 Return on equity excluding AOCI 21.5 % 21.5 %
Operating return on equity excluding AOCI (2) 24.2 % 23.1 %
(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; 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 the impact of consolidating certain investment entities.
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; 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 35%.
Ameriprise Financial, Inc. Consolidated
GAAP Results (in millions, unaudited)
Quarter Ended March
31,
% Better/(Worse)
2016 2015 Revenues
Management and financial advice fees $ 1,386 $ 1,468 (6 )%
Distribution fees 435 466 (7 ) Net investment income 331 484 (32 )
Premiums 368 353 4 Other revenues 254 289 (12 ) Total
revenues 2,774 3,060 (9 ) Banking and deposit interest expense
9 7 (29 )
Total net revenues 2,765 3,053 (9 )
Expenses Distribution expenses 770 819 6 Interest
credited to fixed accounts 146 172 15 Benefits, claims, losses and
settlement expenses 482 533 10 Amortization of deferred acquisition
costs 110 75 (47 ) Interest and debt expense 55 84 35 General and
administrative expense 727 752 3
Total
expenses 2,290 2,435 6 Pretax income 475 618 (23 ) Income tax
provision 111 139 20
Net income 364 479
(24 ) Less: Net income attributable to noncontrolling interests
— 86 NM
Net income attributable to
Ameriprise Financial $ 364 $ 393 (7 ) NM Not Meaningful
— variance of greater than 100%
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160427006692/en/
Ameriprise Financial, Inc.Investor 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
Ameriprise Financial (NYSE:AMP)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ameriprise Financial (NYSE:AMP)
Historical Stock Chart
From Apr 2023 to Apr 2024