[April 22, 2015] |
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Ameriprise Financial Reports First Quarter 2015 Results
Ameriprise Financial, Inc. (NYSE: AMP) today reported first quarter 2015
net income(1) of $393 million, or $2.08 per diluted share.
Operating earnings were $412 million, up 1 percent from a year ago, with
operating earnings per diluted share increasing 7 percent to $2.18.
First quarter 2015 results included an $0.11 per diluted share
unfavorable impact of a long term care reserve increase.
Operating net revenues increased 3 percent to $2.9 billion as business
growth was partially offset by the negative impact of foreign exchange,
a decline in net investment income and lower activity due to market
volatility.
Operating expenses increased 3 percent to $2.3 billion, primarily driven
by a $32 million long term care reserve increase in the current quarter
and a $29 million reserve reduction in the year ago quarter from
policyholder behavior related to a product change. Without these items,
operating expenses were essentially flat. General and administrative
expenses decreased 1 percent compared to a year ago reflecting the
company's ongoing expense discipline.
In the quarter, the company returned $459 million to shareholders
through share repurchases and dividends.
"Ameriprise continues to deliver good performance with our Advice &
Wealth Management and Asset Management businesses generating 64 percent
of operating earnings in the quarter," said Jim Cracchiolo, chairman and
chief executive officer. "Retail client asset growth was strong from net
inflows, new client acquisition and experienced advisor recruiting. And
while the operating environment was more challenging in the quarter with
increased equity market volatility and continued low interest rates,
we're executing our strategy and remain focused on serving our clients
and advisors."
"With our business growth and strong capital position, we continue to
return capital to shareholders through share repurchases and dividends,
including raising our regular quarterly dividend 16 percent - the eighth
increase over the past six years."
(1) Net income represents net income from continuing
operations attributable to Ameriprise Financial.
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Ameriprise Financial, Inc.
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First Quarter Summary
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(in millions, except per share amounts, unaudited)
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Quarter Ended March 31,
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% Better/ (Worse)
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Per Diluted Share Quarter Ended March
31,
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% Better/ (Worse)
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2015
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2014
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2015
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2014
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Net income from continuing operations attributable to Ameriprise
Financial
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$
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393
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$
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401
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(2
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)%
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$
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2.08
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$
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2.01
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3
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%
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Adjustments, net of tax (1) (see reconciliation
on p. 11)
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19
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6
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0.10
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0.03
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Operating earnings (2)
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$
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412
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$
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407
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1
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%
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$
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2.18
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$
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2.04
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7
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%
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Weighted average common shares outstanding:
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Basic
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186.3
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195.5
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Diluted
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189.1
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199.1
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(1) After-tax is calculated using the statutory tax rate of 35%.
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(2) The company believes the presentation of operating earnings best
represents the economics of the business. Operating earnings,
after-tax, exclude the consolidation of certain investment entities;
net realized gains or losses; integration and restructuring charges;
the market impact on variable annuity guaranteed benefits net of
hedges and related deferred acquisition costs (DAC) and deferred
sales inducement costs (DSIC) amortization; the market impact on
indexed universal life benefits, net of hedges and related DAC
amortization, unearned revenue amortization, and the reinsurance
accrual; and income or loss from discontinued operations.
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Results in the quarter reflected $0.13 per diluted share of unfavorable
items - a reserve increase of $0.11 per share related to our closed
block of long term care insurance and a net $0.02 per share unfavorable
impact from other items discussed in the segment commentaries.
In addition, the market impact on DAC and DSIC was a $0.04 per diluted
share benefit compared to a $0.03 per diluted share benefit a year ago.
Taxes
The first quarter 2015 operating effective tax rate was 26.7 percent
compared to 25.2 percent a year ago. The company estimates that its full
year 2015 operating effective tax rate will be in the 26 to 28 percent
range.
First Quarter 2015 Business Highlights
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Total assets under management and administration grew 4 percent from a
year ago to $815 billion driven by Ameriprise advisor client net
inflows and market appreciation, partially offset by an unfavorable
foreign exchange impact of more than $17 billion.
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Advice & Wealth Management experienced continued strong growth in
client assets and flows with advisor client assets up 8 percent to
$453 billion and wrap assets increasing 13 percent to $180 billion.
Wrap net inflows in the quarter were strong at $2.8 billion.
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Advisor productivity continues to improve. On a trailing 12-month
basis, operating net revenue per advisor grew 11 percent to a record
$505,000.
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Experienced advisor recruiting was strong in the quarter, with 77
experienced advisors moving their practices to Ameriprise.
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Asset Management segment AUM increased slightly to $506 billion driven
by market appreciation, partially offset by net outflows and an
unfavorable year-over-year impact of more than $17 billion from
foreign exchange. For the quarter, net outflows were $5.8 billion.
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The company has 120 four- and five-star rated funds at Columbia
Threadneedle Investments.
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On March 30, the company launched the Columbia Threadneedle
Investments brand representing the combined capabilities, resources
and reach of Columbia Management and Threadneedle Investments.
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The company continued to build out its multi-asset solutions business,
launching the Columbia Adaptive Alternatives Fund, a liquid
alternatives fund that provides retail investors access to a diverse
portfolio of alternative investments.
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Variable annuity policyholder account balances grew 3 percent to $78
billion and included $1.2 billion in new sales - 32 percent of sales
in the quarter did not include living benefits, up from 25 percent a
year ago.
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Variable Universal Life / Universal Life insurance account balances
increased 4 percent to $11 billion.
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Combined, Advice & Wealth Management and Asset Management generated 64
percent of company pretax operating earnings(1), up from 61
percent a year ago.
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The company increased its regular quarterly dividend 16 percent to
$0.67 per share payable on May 15, 2015 to shareholders of record as
of May 4, 2015.
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Excess capital was approximately $2.5 billion after the company
repurchased 2.6 million shares of common stock in the quarter for $349
million and paid $110 million in quarterly dividends. The company also
holds $250 million of additional capital above required levels,
primarily for variable annuity products.
(1) Excludes Corporate & Other segment
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Ameriprise Financial, Inc.
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Advice & Wealth Management Segment Operating Results
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(in millions, unaudited)
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Quarter Ended March 31,
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% Better/ (Worse)
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2015
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2014
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Advice & Wealth Management
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Net revenues
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$
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1,228
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$
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1,149
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7
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%
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Expenses
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1,018
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968
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(5
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Pretax operating earnings
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$
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210
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$
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181
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16
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Pretax operating margin
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17.1
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%
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15.8
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%
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Quarter Ended March 31,
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% Better/ (Worse)
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2015
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2014
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Retail client assets (billions)
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$
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453
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$
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418
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8
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%
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Mutual fund wrap net flows (billions)
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$
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2.8
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$
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4.2
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(33
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)%
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Operating net revenue per branded advisor (trailing 12 months -
thousands)
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$
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505
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$
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454
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11
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%
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Advice & Wealth Management pretax operating earnings
increased 16 percent to $210 million reflecting strong revenue growth
and expense controls. First quarter 2015 pretax operating margin reached
a record high of 17.1 percent compared to 15.8 percent a year ago. On a
sequential basis, first quarter 2015 results reflected two fewer fee
days.
Operating net revenues grew 7 percent to $1.2 billion driven by asset
growth in fee-based accounts from client net inflows and market
appreciation, partially offset by lower activity reflecting increased
market volatility.
Operating expenses increased 5 percent to $1 billion as business growth
resulted in higher distribution expenses. General and administrative
expenses were flat compared to a year ago.
Total retail client assets grew 8 percent to $453 billion driven by
client net inflows, new client acquisition and market appreciation. Wrap
net inflows remained strong at $2.8 billion with wrap balances
increasing 13 percent to $180 billion. The combination of asset growth
and client activity drove an 11 percent increase in operating net
revenue per advisor on a trailing 12-month basis.
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Ameriprise Financial, Inc.
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Asset Management Segment Operating Results
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(in millions, unaudited)
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Quarter Ended March 31,
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% Better/ (Worse)
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2015
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2014
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Asset Management
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Net revenues
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$
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807
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$
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807
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-
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Expenses
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616
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624
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1
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%
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Pretax operating earnings
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$
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191
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$
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183
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4
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Adjusted net pretax operating margin
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39.7
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%
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39.0
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%
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Quarter Ended March 31,
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% Better/ (Worse)
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2015
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2014
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Total segment AUM(1) (billions)
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$
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506
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$
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504
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-
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Columbia Management AUM
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$
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364
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$
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358
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2
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%
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Threadneedle AUM
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$
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147
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$
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149
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(1
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)%
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Total segment net flows (billions)
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$
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(5.8
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$
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(3.9
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)
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(49
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)%
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Retail net flows
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$
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(3.0
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$
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(3.4
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11
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%
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Institutional net flows
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$
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(2.8
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$
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(0.8
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NM
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Alternative net flows
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$
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-
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$
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0.3
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NM
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(1) Subadvisory eliminations between Columbia
Management and Threadneedle are included in the company's First
Quarter 2015 Statistical Supplement available at ir.ameriprise.com
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NM Not Meaningful - variance of greater than 100%
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Asset Management pretax operating earnings increased 4 percent to
$191 million driven by market appreciation and continued expense
management, partially offset by net outflows, the negative impact of
foreign exchange and costs associated with the move to a new London
office.
First quarter adjusted net pretax operating margin remained strong at
39.7 percent compared to 39.0 percent a year ago.
Operating net revenues were flat at $807 million as asset growth from
market appreciation was offset by net outflows and the negative impact
of foreign exchange.
Operating expenses decreased 1 percent to $616 million reflecting
well-controlled general and administrative expenses and lower
distribution expenses.
AUM grew slightly to $506 billion as market appreciation more than
offset the impact of net outflows and a more than $17 billion
unfavorable impact from foreign exchange. For the quarter, net outflows
were $5.8 billion reflecting elevated outflows in the Columbia Acorn
Fund, continued outflows from former parent company affiliated
distribution, and low basis point fee institutional and insurance
mandates. Initiatives to improve U.S. retail intermediary flows are
gaining traction, including initiatives to increase wholesaler
productivity and earn greater share with key clients and platforms.
Retail net inflows of $0.5 billion at Threadneedle included increased
flows into Asian equity products. Net outflows in third party
institutional reflected the timing of certain large mandate fundings,
which are now expected to fund in the second quarter.
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Ameriprise Financial, Inc.
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Annuities Segment Operating Results
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(in millions, unaudited)
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Quarter Ended March 31,
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% Better/ (Worse)
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2015
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2014
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Annuities
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Net revenues
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$
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631
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$
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636
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(1
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)%
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Expenses
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459
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460
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-
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Pretax operating earnings
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$
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172
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$
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176
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(2
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Variable annuity pretax operating earnings
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$
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144
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$
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145
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(1
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)%
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Fixed annuity pretax operating earnings
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28
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31
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(10
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Total pretax operating earnings
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$
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172
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$
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176
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(2
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Items included in operating earnings:
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Market impact on DAC and DSIC (mean reversion)
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$
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10
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$
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8
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25
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%
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Impact of variable annuity product changes
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2
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29
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(93
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)%
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Total annuities impact
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$
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12
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$
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37
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(68
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)%
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Quarter Ended March 31,
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% Better/ (Worse)
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2015
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2014
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Variable annuity ending account balances (billions)
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$
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77.9
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$
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75.9
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3
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%
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Variable annuity net flows (millions)
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$
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(385
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)
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$
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(400
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)
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4
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%
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Fixed annuity ending account balances (billions)
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$
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11.7
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$
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12.9
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(10
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)%
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Fixed annuity net flows (millions)
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$
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(565
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)
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$
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(415
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)
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(36
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)%
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Annuities pretax operating earnings were $172 million compared to
$176 million a year ago, as the year ago period included a $37 million
benefit from the market impact on DAC and DSIC and from policyholder
behavior related to a variable annuity product change.
Variable annuity operating earnings were $144 million in the quarter
reflecting $25 million of lower benefits from policyholder behavior
related to a product change in the year ago period and the market impact
on DAC and DSIC. Account balances grew 3 percent to $78 billion driven
by market appreciation, partially offset by net outflows. Variable
annuity cash sales were $1.2 billion for the quarter.
Fixed annuity operating earnings decreased to $28 million primarily
driven by the cumulative decline in account balances, partially offset
by higher spreads due to lower crediting rates. Fixed annuity account
balances decreased 10 percent given limited new sales from low rates and
lapse rates consistent with the company's expectations.
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Ameriprise Financial, Inc.
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Protection Segment Operating Results
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(in millions, unaudited)
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Quarter Ended March 31,
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% Better/ (Worse)
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2015
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2014
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Protection
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Net revenues
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$
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590
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$
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555
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6
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%
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Expenses
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539
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|
496
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(9
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Pretax operating earnings
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$
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51
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$
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59
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(14
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)
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|
|
|
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Items included in operating earnings:
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Market impact on DAC (mean reversion)
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$
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1
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$
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-
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NM
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Long term care reserves
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(32
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)
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-
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NM
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Auto and home reserves
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-
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(30
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)
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NM
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Disability insurance discount rate change
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7
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-
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NM
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Total auto and home weather-related losses(1)
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(12
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)
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(20
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)
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40
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%
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Total protection impact
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$
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(36
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)
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$
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(50
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)
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28
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%
|
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|
Quarter Ended March 31,
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% Better/ (Worse)
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2015
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|
2014
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Life insurance in force (billions)
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$
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196
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$
|
194
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1
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%
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VUL/UL ending account balances (billions)
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$
|
11.4
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$
|
11.0
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|
|
4
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%
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Auto & Home policies in force (thousands)
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|
943
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|
|
|
861
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|
|
10
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%
|
|
|
|
|
|
|
|
|
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(1) Q1 2015 includes $4 million related to 2014
catastrophe losses
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NM Not Meaningful - variance of greater than 100%
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Protection pretax operating earnings were $51 million compared to
$59 million a year ago. Included in the current quarter's results were a
$32 million long term care reserve increase, a loss ratio assumption at
Auto and Home that was consistent with the run rate for the fourth
quarter of 2014, and a $7 million favorable impact from a change in the
discount rate for disability insurance products.
Life and Health insurance earnings, excluding unusual items, were solid
and included elevated claims experience that was within normal quarterly
claims fluctuations. VUL/UL account balances grew 4 percent primarily
from market appreciation. VUL/UL cash sales were $66 million, down 15
percent.
As anticipated, the company obtained additional information from its
long term care reinsurance provider during the quarter regarding benefit
utilization and claim terminations. The new information, along with a
review of the discount rate, resulted in a revised management best
estimate for long term care claims reserves. The impact was a $32
million increase in the claims reserves. The company has exercised its
contractual right to engage an outside actuarial firm to conduct
additional analysis of claims experience that is expected to be
completed in the second quarter.
Auto and Home had a modest operating loss in the quarter compared to a
significant loss a year ago. The improved results reflected lower
weather-related losses and increased reserves a year ago, partially
offset by higher 2015 accident year loss ratio assumptions consistent
with the fourth quarter 2014 accident year level. The company continues
to make improvements in underwriting, operational and claims processes,
and pricing actions to improve performance. These actions are expected
to have an incremental impact on financial results in 2015 and a more
substantial financial benefit in 2016.
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Ameriprise Financial, Inc.
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Corporate & Other Segment Operating Results
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(in millions, unaudited)
|
|
Quarter Ended March 31,
|
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% Better/ (Worse)
|
|
2015
|
|
2014
|
|
Corporate & Other
|
|
|
|
|
|
|
|
Net revenues
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$
|
(6
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)
|
|
$
|
6
|
|
|
NM
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Expenses
|
|
|
56
|
|
|
|
61
|
|
|
8
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%
|
Pretax operating loss
|
|
$
|
(62
|
)
|
|
$
|
(55
|
)
|
|
(13
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)
|
|
|
|
|
|
|
|
|
NM Not Meaningful - variance of greater than 100%
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Corporate & Other pretax operating loss was $62 million for
the quarter compared to a $55 million loss a year ago.
At Ameriprise Financial, we have been helping people feel confident
about their financial future for more than 120 years. With a nationwide
network of 10,000 financial advisors and extensive asset management,
advisory and insurance capabilities, we have the strength and expertise
to serve the full range of individual and institutional investors'
financial needs. For more information, visit ameriprise.com.
Ameriprise Financial Services, Inc. offers financial planning services,
investments, insurance and annuity products. Columbia Funds are
distributed by Columbia Management Investment Distributors, Inc., member
FINRA and managed by Columbia Management Investment Advisers, LLC.
Threadneedle International Limited is an SEC- and FCA-registered
investment adviser affiliate of Columbia Management Investment Advisers,
LLC based in the U.K. Auto and home insurance is underwritten by IDS
Property Casualty Insurance Company, or in certain states, Ameriprise
Insurance Company, both in De Pere, WI. RiverSource insurance and
annuity products are issued by RiverSource Life Insurance Company, and
in New York only by RiverSource Life Insurance Co. of New York, Albany,
New York. Only RiverSource Life Insurance Co. of New York is authorized
to sell insurance and annuity products in the state of New York. These
companies are all part of Ameriprise Financial, Inc. CA License
#0684538. RiverSource Distributors, Inc. (Distributor), Member FINRA.
Forward-Looking Statements
This news release contains forward-looking statements that reflect
management's plans, estimates and beliefs. Actual results could differ
materially from those described in these forward-looking statements.
Examples of such forward-looking statements include:
-
the statement in this news release that the company expects its
full-year 2015 operating effective tax rate to be in the 26 to 28
percent range;
-
the statement in this news release concerning anticipated funding of
mandates in the second quarter for Columbia Threadneedle Investments;
-
the statements in this news release concerning anticipated completion
of actuarial analysis on long term care claim experience in the second
quarter;
-
the statements in this news release concerning the expected impact,
and time during which impacts might be realized, as a result of
actions taken in the company's Auto and Home business;
-
statements of the company's plans, intentions, positioning,
expectations, objectives or goals, including those relating to asset
flows, mass affluent and affluent client acquisition strategy, client
retention and growth of our client base, financial advisor
productivity, retention, recruiting and enrollments, the introduction,
cessation, terms or pricing of new or existing products and services,
acquisition integration, general and administrative costs,
consolidated tax rate, return of capital to shareholders, and excess
capital position and financial flexibility to capture additional
growth opportunities;
-
other statements about future economic performance, the performance of
equity markets and interest rate variations and the economic
performance of the United States and of global markets; and
-
statements of assumptions underlying such statements.
The words "believe," "expect," "anticipate," "optimistic," "intend,"
"plan," "aim," "will," "may," "should," "could," "would," "likely,"
"forecast," "on pace," "project" and similar expressions are intended to
identify forward-looking statements but are not the exclusive means of
identifying such statements. Forward-looking statements are subject to
risks and uncertainties, which could cause actual results to differ
materially from such statements.
Such factors include, but are not limited to:
-
conditions in the interest rate, credit default, equity market and
foreign exchange environments, including changes in valuations,
liquidity and volatility;
-
changes in and the adoption of relevant accounting standards and
securities rating agency standards and processes, as well as changes
in the litigation and regulatory environment, including ongoing legal
proceedings and regulatory actions, the frequency and extent of legal
claims threatened or initiated by clients, other persons and
regulators, and developments in regulation and legislation, including
the rules, exemptions and regulations implemented or that may be
implemented in connection with the Dodd-Frank Wall Street Reform and
Consumer Protection Act or in light of the U.S. Department of Labor
pending rule and exemptions pertaining to the fiduciary status of
investment advice providers to 401(k) plan, plan sponsors, plan
participants and the holders of individual retirement or health
savings accounts;
-
investment management performance and distribution partner and
consumer acceptance of the company's products;
-
effects of competition in the financial services industry, including
pricing pressure, the introduction of new products and services and
changes in product distribution mix and distribution channels;
-
changes to the company's reputation that may arise from employee or
advisor misconduct, legal or regulatory actions, perceptions of the
financial services industry generally, improper management of
conflicts of interest or otherwise;
-
the company's capital structure, including indebtedness, limitations
on subsidiaries to pay dividends, and the extent, manner, terms and
timing of any share or debt repurchases management may effect as well
as the opinions of rating agencies and other analysts and the
reactions of market participants or the company's regulators,
advisors, distribution partners or customers in response to any change
or prospect of change in any such opinion;
-
changes to the availability and cost of liquidity and the Company's
credit capacity that may arise due to shifts in market conditions, the
Company's credit ratings and the overall availability of credit;
-
risks of default, capacity constraint or repricing by issuers or
guarantors of investments the company owns or by counterparties to
hedge, derivative, insurance or reinsurance arrangements or by
manufacturers of products the company distributes, experience
deviations from the company's assumptions regarding such risks, the
evaluations or the prospect of changes in evaluations of any such
third parties published by rating agencies or other analysts, and the
reactions of other market participants or the company's regulators,
advisors, distribution partners or customers in response to any such
evaluation or prospect of changes in evaluation;
-
experience deviations from the company's assumptions regarding
morbidity, mortality and persistency in certain annuity and insurance
products, or from assumptions regarding market returns assumed in
valuing or unlocking DAC and DSIC or market volatility underlying our
valuation and hedging of guaranteed living benefit annuity riders, or
from assumptions regarding interest rates assumed in our loss
recognition testing of our Long Term Care business, or from
assumptions regarding anticipated claims and losses relating to our
automobile and home insurance products;
-
changes in capital requirements that may be indicated, required or
advised by regulators or rating agencies;
-
the impacts of the company's efforts to improve distribution economics
and to grow third-party distribution of its products;
-
the ability to pursue and complete strategic transactions and
initiatives, including acquisitions, divestitures, restructurings,
joint ventures and the development of new products and services;
-
the ability to realize the financial, operating and business
fundamental benefits of strategic transactions and initiatives the
company has completed, is pursuing or may pursue in the future, which
may be impacted by the ability to obtain regulatory approvals, the
ability to effectively manage related expenses and by market, business
partner and consumer reactions to such strategic transactions and
initiatives;
-
the ability and timing to realize savings and other benefits from
re-engineering and tax planning;
-
interruptions or other failures in our communications, technology and
other operating systems, including errors or failures caused by third
party service providers, interference or failures caused by third
party attacks on our systems, or the failure to safeguard the privacy
or confidentiality of sensitive information and data on such systems;
and
-
general economic and political factors, including consumer confidence
in the economy and the financial industry, the ability and inclination
of consumers generally to invest as well as their ability and
inclination to invest in financial instruments and products other than
cash and cash equivalents, the costs of products and services the
company consumes in the conduct of its business, and applicable
legislation and regulation and changes therein, including tax laws,
tax treaties, fiscal and central government treasury policy, and
policies regarding the financial services industry and publicly held
firms, and regulatory rulings and pronouncements.
Management cautions the reader that the foregoing list of factors is not
exhaustive. There may also be other risks that management is unable to
predict at this time that may cause actual results to differ materially
from those in forward-looking statements. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak
only as of the date on which they are made. Management undertakes no
obligation to update publicly or revise any forward-looking statements.
The foregoing list of factors should be read in conjunction with the
"Risk Factors" discussion under Part 1, Item 1A of and elsewhere in our
Annual Report on Form 10-K for the year ended December 31, 2014
available at ir.ameriprise.com.
The financial results discussed in this news release represent past
performance only, which may not be used to predict or project future
results. The financial results and values presented in this news release
and the below-referenced Statistical Supplement are based upon asset
valuations that represent estimates as of the date of this news release
and may be revised in the company's Quarterly Report on Form 10-Q for
the quarter ended March 31, 2015. For information about Ameriprise
Financial entities, please refer to the First Quarter 2015 Statistical
Supplement available at ir.ameriprise.com
and the tables that follow in this news release.
Ameriprise Financial announces financial and other information to
investors through the company's investor relations website at ir.ameriprise.com,
as well as SEC filings, press releases, public conference calls and
webcasts. Investors and others interested in the company are encouraged
to visit the investor relations website from time to time, as
information is updated and new information is posted. The website also
allows users to sign up for automatic notifications in the event new
materials are posted. The information found on the website is not
incorporated by reference into this release or in any other report or
document the company furnishes or files with the SEC.
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Earnings
|
|
|
|
Quarter Ended March 31,
|
|
Per Diluted Share Quarter Ended March
31,
|
(in millions, except per share amounts, unaudited)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net income attributable to Ameriprise Financial
|
|
$
|
393
|
|
|
$
|
400
|
|
|
$
|
2.08
|
|
|
$
|
2.01
|
|
Less: Loss from discontinued operations, net of tax
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
-
|
|
Net income from continuing operations attributable to Ameriprise
Financial
|
|
|
393
|
|
|
|
401
|
|
|
|
2.08
|
|
|
|
2.01
|
|
Add: Market impact on variable annuity guaranteed benefits, net of
tax(1)
|
|
|
22
|
|
|
|
10
|
|
|
|
0.12
|
|
|
|
0.05
|
|
Add: Market impact on indexed universal life benefits, net of tax(1)
|
|
|
4
|
|
|
|
(1
|
)
|
|
|
0.02
|
|
|
|
-
|
|
Add: Net realized (gains) losses, net of tax(1)
|
|
|
(7
|
)
|
|
|
(3
|
)
|
|
|
(0.04
|
)
|
|
|
(0.02
|
)
|
Operating earnings
|
|
$
|
412
|
|
|
$
|
407
|
|
|
$
|
2.18
|
|
|
$
|
2.04
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
186.3
|
|
|
|
195.5
|
|
|
|
|
|
Diluted
|
|
|
189.1
|
|
|
|
199.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Calculated using the statutory tax rate of 35%.
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Total Net Revenues
|
|
|
|
Quarter Ended
|
|
|
March 31,
|
(in millions, unaudited)
|
|
2015
|
|
2014
|
Total net revenues
|
|
$
|
3,053
|
|
|
$
|
2,996
|
Less: CIEs revenue
|
|
|
149
|
|
|
|
177
|
Less: Net realized gains (losses)
|
|
|
10
|
|
|
|
5
|
Less: Market impact on indexed universal life benefits
|
|
|
(4
|
)
|
|
|
2
|
Operating total net revenues
|
|
$
|
2,898
|
|
|
$
|
2,812
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Total Expenses
|
|
|
|
Quarter Ended
|
|
|
March 31,
|
(in millions, unaudited)
|
|
2015
|
|
2014
|
Total expenses
|
|
$
|
2,435
|
|
|
$
|
2,346
|
Less: CIEs expenses
|
|
|
63
|
|
|
|
62
|
Less: Market impact on variable annuity guaranteed benefits
|
|
|
34
|
|
|
|
15
|
Less: Market impact on indexed universal life benefits
|
|
|
2
|
|
|
|
1
|
Operating expenses
|
|
$
|
2,336
|
|
|
$
|
2,268
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Pretax Operating Earnings
|
|
|
|
Quarter Ended
|
|
|
March 31,
|
(in millions, unaudited)
|
|
2015
|
|
2014
|
Operating total net revenues
|
|
$
|
2,898
|
|
|
$
|
2,812
|
Operating expenses
|
|
|
2,336
|
|
|
|
2,268
|
Pretax operating earnings
|
|
$
|
562
|
|
|
$
|
544
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: General and Administrative Expense
|
|
|
|
Quarter Ended
|
|
|
March 31,
|
(in millions, unaudited)
|
|
2015
|
|
2014
|
General and administrative expense
|
|
$
|
752
|
|
|
$
|
758
|
Less: CIEs expenses
|
|
|
10
|
|
|
|
12
|
Operating general and administrative expense
|
|
$
|
742
|
|
|
$
|
746
|
|
|
|
|
|
|
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Effective Tax Rate
|
|
|
|
Quarter Ended March 31, 2015
|
(in millions, unaudited)
|
|
GAAP
|
|
Operating
|
Income from continuing operations before income tax provision
|
|
$
|
618
|
|
|
$
|
562
|
|
Less: Pretax income attributable to noncontrolling interests
|
|
|
86
|
|
|
|
-
|
|
Income from continuing operations before income tax provision
excluding consolidated investment entities
|
|
$
|
532
|
|
|
$
|
562
|
|
Income tax provision from continuing operations
|
|
$
|
139
|
|
|
$
|
150
|
|
Effective tax rate
|
|
|
22.5
|
%
|
|
|
26.7
|
%
|
Effective tax rate excluding noncontrolling interests
|
|
|
26.1
|
%
|
|
|
26.7
|
%
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Effective Tax Rate
|
|
|
|
Quarter Ended March 31, 2014
|
(in millions, unaudited)
|
|
GAAP
|
|
Operating
|
Income from continuing operations before income tax provision
|
|
$
|
650
|
|
|
$
|
544
|
|
Less: Pretax income attributable to noncontrolling interests
|
|
|
115
|
|
|
|
-
|
|
Income from continuing operations before income tax provision
excluding consolidated investment entities
|
|
$
|
535
|
|
|
$
|
544
|
|
Income tax provision from continuing operations
|
|
$
|
134
|
|
|
$
|
137
|
|
Effective tax rate
|
|
|
20.7
|
%
|
|
|
25.2
|
%
|
Effective tax rate excluding noncontrolling interests
|
|
|
25.1
|
%
|
|
|
25.2
|
%
|
|
|
|
|
|
|
|
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Asset Management Adjusted Net Pretax
Operating Margin
|
|
|
|
Quarter Ended March 31,
|
(in millions, unaudited)
|
|
2015
|
|
2014
|
Operating total net revenues
|
|
$
|
807
|
|
|
$
|
807
|
|
Less: Distribution pass through revenues
|
|
|
218
|
|
|
|
228
|
|
Less: Subadvisory and other pass through revenues
|
|
|
103
|
|
|
|
97
|
|
Adjusted operating revenues
|
|
$
|
486
|
|
|
$
|
482
|
|
|
|
|
|
|
Pretax operating earnings
|
|
$
|
191
|
|
|
$
|
183
|
|
Less: Operating net investment income
|
|
|
6
|
|
|
|
4
|
|
Add: Amortization of intangibles
|
|
|
8
|
|
|
|
9
|
|
Adjusted operating earnings
|
|
$
|
193
|
|
|
$
|
188
|
|
|
|
|
|
|
Adjusted net pretax operating margin
|
|
|
39.7
|
%
|
|
|
39.0
|
%
|
|
|
|
|
|
|
|
|
|
|
Ameriprise Financial, Inc. Reconciliation Table:
Return on Equity (ROE) Excluding Accumulated Other
Comprehensive Income "AOCI"
|
|
|
|
Twelve Months Ended March 31,
|
(in millions, unaudited)
|
|
2015
|
|
2014
|
Net income attributable to Ameriprise Financial
|
|
$
|
1,612
|
|
|
$
|
1,399
|
|
Less: Loss from discontinued operations, net of tax
|
|
|
(1
|
)
|
|
|
(3
|
)
|
Net income from continuing operations attributable to Ameriprise
Financial, as reported
|
|
|
1,613
|
|
|
|
1,402
|
|
Less: Adjustments (1)
|
|
|
(54
|
)
|
|
|
(127
|
)
|
Operating earnings
|
|
$
|
1,667
|
|
|
$
|
1,529
|
|
|
|
|
|
|
Total Ameriprise Financial, Inc. shareholders' equity
|
|
$
|
8,270
|
|
|
$
|
8,432
|
|
Less: Accumulated other comprehensive income, net of tax
|
|
|
755
|
|
|
|
731
|
|
Total Ameriprise Financial, Inc. shareholders' equity excluding AOCI
|
|
|
7,515
|
|
|
|
7,701
|
|
Less: Equity impacts attributable to the consolidated investment
entities
|
|
|
300
|
|
|
|
337
|
|
Operating equity
|
|
$
|
7,215
|
|
|
$
|
7,364
|
|
|
|
|
|
|
Return on equity excluding AOCI
|
|
|
21.5
|
%
|
|
|
18.2
|
%
|
Operating return on equity excluding AOCI (2)
|
|
|
23.1
|
%
|
|
|
20.8
|
%
|
|
|
|
|
|
|
|
|
|
(1) Adjustments reflect the trailing twelve months' sum
of after-tax net realized gains/losses; market impact on variable
annuity guaranteed benefits, net of hedges and related DSIC and
DAC amortization; the market impact on indexed universal life
benefits, net of hedges and related DAC amortization, unearned
revenue amortization, and the reinsurance accrual; and
integration/restructuring charges. After-tax is calculated using
the statutory tax rate of 35%.
|
|
(2) Operating return on equity excluding accumulated
other comprehensive income (AOCI) is calculated using the trailing
twelve months of earnings excluding the after-tax net realized
gains/losses; market impact on variable annuity guaranteed
benefits, net of hedges and related DSIC and DAC amortization; the
market impact on indexed universal life benefits, net of hedges
and related DAC amortization, unearned revenue amortization, and
the reinsurance accrual; integration/restructuring charges; and
discontinued operations in the numerator, and Ameriprise Financial
shareholders' equity excluding AOCI and the impact of
consolidating investment entities using a five-point average of
quarter-end equity in the denominator. After-tax is calculated
using the statutory tax rate of 35%
|
|
|
Ameriprise Financial, Inc. Consolidated GAAP
Results
|
|
(in millions, unaudited)
|
|
Quarter Ended March 31,
|
|
% Better/ (Worse)
|
|
2015
|
|
2014
|
|
Revenues
|
|
|
|
|
|
|
Management and financial advice fees
|
|
$
|
1,468
|
|
$
|
1,386
|
|
6
|
%
|
Distribution fees
|
|
|
466
|
|
|
476
|
|
(2
|
)
|
Net investment income
|
|
|
484
|
|
|
471
|
|
3
|
|
Premiums
|
|
|
353
|
|
|
330
|
|
7
|
|
Other revenues
|
|
|
289
|
|
|
340
|
|
(15
|
)
|
Total revenues
|
|
|
3,060
|
|
|
3,003
|
|
2
|
|
Banking and deposit interest expense
|
|
|
7
|
|
|
7
|
|
-
|
|
Total net revenues
|
|
|
3,053
|
|
|
2,996
|
|
2
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
Distribution expenses
|
|
|
819
|
|
|
786
|
|
(4
|
)
|
Interest credited to fixed accounts
|
|
|
172
|
|
|
186
|
|
8
|
|
Benefits, claims, losses and settlement expenses
|
|
|
533
|
|
|
450
|
|
(18
|
)
|
Amortization of deferred acquisition costs
|
|
|
75
|
|
|
87
|
|
14
|
|
Interest and debt expense
|
|
|
84
|
|
|
79
|
|
(6
|
)
|
General and administrative expense
|
|
|
752
|
|
|
758
|
|
1
|
|
Total expenses
|
|
|
2,435
|
|
|
2,346
|
|
(4
|
)
|
Income from continuing operations before income tax provision
|
|
|
618
|
|
|
650
|
|
(5
|
)
|
Income tax provision
|
|
|
139
|
|
|
134
|
|
(4
|
)
|
Income from continuing operations
|
|
|
479
|
|
|
516
|
|
(7
|
)
|
Loss from discontinued operations, net of tax
|
|
|
-
|
|
|
(1)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
479
|
|
|
515
|
|
(7
|
)
|
Less: Net income attributable to noncontrolling interests
|
|
|
86
|
|
|
115
|
|
(25
|
)
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Ameriprise Financial
|
|
$
|
393
|
|
$
|
400
|
|
(2
|
)
|
|
NM Not Meaningful - variance of greater than 100%
|
|
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|