Ameriprise Financial Reports Fourth Quarter 2021 Results

Ameriprise Financial, Inc. (NYSE: AMP):

 

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.

 

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. 255)

$ 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.

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 133.

(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.

 

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 144.

(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.
  • 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.

     

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.

 

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.

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
  • 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.

 

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%

 

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.

 

 

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

%

 

 

 

 

 

 

 

 

 

 

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%

 

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%.

 

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%.

 

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.

 

 

 

 

 

 

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%

 

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%

 

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%

 

 

 

 

 

 

 

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%

 

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%

 

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%

 

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.

 

 

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

 

 

 

 

 

 

 

 

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%

 

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%.

 

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

%

 

 

 

 

 

 

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

%

 

 

 

 

 

 

 

 

 

 

 

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

%

 

 

 

 

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

%

 

 

 

 

 

 

 

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%.

 

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