Ameriprise Financial Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Ameriprise Financial Inc. has submitted its Q1 2024 10-Q filing, detailing financial performance and operational data.</b>

AI Summary

AMERIPRISE FINANCIAL INC (AMP) filed a Quarterly Report (10-Q) with the SEC on May 6, 2024. Ameriprise Financial Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's principal business is Investment Advice. The filing includes data for the periods January 1, 2024 to March 31, 2024, and January 1, 2023 to March 31, 2023. The company was formerly known as American Express Financial Corp.

Why It Matters

For investors and stakeholders tracking AMERIPRISE FINANCIAL INC, this filing contains several important signals. This filing provides investors with a quarterly update on Ameriprise Financial's financial health and operational performance, crucial for investment decisions. The detailed financial statements and disclosures in the 10-Q allow for a comparison of performance against previous periods and industry benchmarks.

Risk Assessment

Risk Level: low — AMERIPRISE FINANCIAL INC shows low risk based on this filing. The filing is a routine 10-Q, indicating standard financial reporting without immediate red flags.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to assess Ameriprise Financial's current operational efficiency and growth trajectory.

Key Numbers

• 2024-03-31 — Report Period End Date (Conformed period of report)
• 2024-05-06 — Filing Date (Filed as of date)
• 0000820027 — Central Index Key (Filer's Central Index Key)
• 612-671-8001 — Business Phone (Filer's business phone number)

Key Players & Entities

• AMERIPRISE FINANCIAL INC (company) — Filer name
• AMERICAN EXPRESS FINANCIAL CORP (company) — Former company name
• AMERICAN EXPRESS FINANCIAL ADVISORS (company) — Former company name
• IDS FINANCIAL CORP/MN/ (company) — Former company name
• MINNEAPOLIS (location) — Business and mail address city
• DE (location) — State of incorporation

FAQ

Industry Context

Ameriprise Financial operates in the financial services sector, specifically focusing on investment advice and distribution services.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial reports to the SEC.

What Investors Should Do

1. Analyze the revenue and net income trends for Q1 2024 compared to Q1 2023.
2. Examine any disclosures related to changes in assets under management or client assets.
3. Review the company's liquidity and capital adequacy as presented in the balance sheet details.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-06: Filing Date — Date the 10-Q report was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides a comprehensive overview of a company's financial performance during a specific quarter.)

Investment Advice

Services provided to clients on managing their investments. (Identifies the primary business segment of Ameriprise Financial Inc.)

Year-Over-Year Comparison

This is the initial 10-Q filing for the period ending March 31, 2024, and specific comparative data from the prior year's quarter is included within the report.

Key Financial Figures

• $0.01 — ch registered Common Stock (par value $0.01 per share) AMP New York Stock Exchange

Filing Documents

• amp-20240331.htm (10-Q) — 5876KB
• ampexhibit311-x33124xuse.htm (EX-31.1) — 10KB
• ampexhibit312-x33124xuse.htm (EX-31.2) — 10KB
• ampexhibit32-x33124xuse.htm (EX-32) — 8KB
• 0000820027-24-000055.txt (&nbsp;) — 32008KB
• amp-20240331.xsd (EX-101.SCH) — 107KB
• amp-20240331_cal.xml (EX-101.CAL) — 196KB
• amp-20240331_def.xml (EX-101.DEF) — 991KB
• amp-20240331_lab.xml (EX-101.LAB) — 1394KB
• amp-20240331_pre.xml (EX-101.PRE) — 1167KB
• amp-20240331_htm.xml (XML) — 8665KB

Financial Information

Part I. Financial Information 3

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 3 Consolidated Statements of Operations — Three months ended March 31, 2024 and 2023 3 Consolidated Statements of Comprehensive Income — Three months ended March 31, 2024 and 2023 4 Consolidated Balance Sheets — March 31, 2024 and December 31, 2023 5 Consolidated Statements of Equity — Three months ended March 31, 2024 and 2023 6 Consolidated Statements of Cash Flows — Three months ended March 31, 2024 and 2023 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 1. Basis of Presentation 9 2. Recent Accounting Pronouncements 9 3. Revenue from Contracts with Customers 10 4. Variable Interest Entities 13 5. Investments 17 6. Financing Receivables 21 7. Deferred Acquisition Costs and Deferred Sales Inducement Costs 26 8. Policyholder Account Balances, Future Policy Benefits and Claims 27 9. Separate Account Assets and Liabilities 37 10. Market Risk Benefits 38 11. Debt 42 12. Fair Values of Assets and Liabilities 43 13. Offsetting Assets and Liabilities 52 14. Derivatives and Hedging Activities 53 15. Shareholders' Equity 57 16. Income Taxes 58 17. Contingencies 59 18. Earnings per Share 61 19. Segment Information 61

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 63

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 81

Controls and Procedures

Item 4. Controls and Procedures 83

Other Information

Part II. Other Information 83

Legal Proceedings

Item 1. Legal Proceedings 83

Risk Factors

Item 1A. Risk Factors 83

Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 84

Other Information

Item 5. Other Information 84

Exhibits

Item 6. Exhibits 85

Signatures

Signatures 86 2 Index AMERIPRISE FINANCIAL, INC.

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended March 31, 2024 2023 (in millions, except per share amounts) Revenues Management and financial advice fees $ 2,399 $ 2,137 Distribution fees 506 517 Net investment income 901 698 Premiums, policy and contract charges 390 362 Other revenues 129 131 Total revenues 4,325 3,845 Banking and deposit interest expense 179 103 Total net revenues 4,146 3,742 Benefits and expenses Distribution expenses 1,419 1,226 Interest credited to fixed accounts 132 164 Benefits, claims, losses and settlement expenses 295 301 Remeasurement (gains) losses of future policy benefit reserves ( 4 ) ( 5 ) Change in fair value of market risk benefits ( 18 ) 489 Amortization of deferred acquisition costs 61 62 Interest and debt expense 82 72 General and administrative expense 960 937 Total benefits and expenses 2,927 3,246 Pretax income 1,219 496 Income tax provision 229 79 Net income $ 990 $ 417 Earnings per share Basic $ 9.63 $ 3.86 Diluted $ 9.46 $ 3.79 See Notes to Consolidated Financial Statements. 3 Index AMERIPRISE FINANCIAL, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended March 31, 2024 2023 (in millions) Net income $ 990 $ 417 Other comprehensive income (loss), net of tax: Net unrealized gains (losses) on securities ( 178 ) 430 Net unrealized gains (losses) on derivatives — 2 Effect of changes in discount rate assumptions on certain long-duration contracts 69 ( 65 ) Effect of changes in instrument-specific credit risk on market risk benefits ( 37 ) 161 Foreign currency translation adjustment ( 18 ) 33 Total other comprehensive income (loss), net of tax ( 164 ) 561 Total comprehensive income (loss) $ 826 $ 978 See Notes to Consolidated Financial Statements. 4 Index AMERIPRISE FINANCIAL, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) March 31, 2024 December 31, 2023 (in mill

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. Basis of Presentation Ameriprise Financial, Inc. is a holding company, which primarily conducts business through its subsidiaries to provide financial planning, products and services that are designed to be utilized as solutions for clients' cash and liquidity, asset accumulation, income, protection and estate and wealth transfer needs. The foreign operations of Ameriprise Financial, Inc. ("Ameriprise Financial") are conducted primarily through Columbia Threadneedle Investments UK International Limited, TAM UK International Holdings Ltd and Ameriprise Asset Management Holdings Singapore (Pte.) Ltd and their respective subsidiaries (collectively, "Threadneedle"). The accompanying Consolidated Financial Statements include the accounts of Ameriprise Financial, Inc., companies in which it directly or indirectly has a controlling financial interest and variable interest entities ("VIEs") in which it is the primary beneficiary (collectively, the "Company"). All intercompany transactions and balances have been eliminated in consolidation. The interim financial information in this report has not been audited. In the opinion of management, all adjustments necessary for fair statement of the consolidated results of operations and financial position for the interim periods have been made. All adjustments made were of a normal recurring nature. The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). Certain reclassifications of prior period amounts have been made to conform with the current presentation. Results of operations reported for interim periods are not necessarily indicative of results for the entire year. These Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, filed

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) 3. Revenue from Contracts with Customers The following tables present revenue disaggregated by segment on an adjusted operating basis with a reconciliation of segment revenues to those reported on the Consolidated Statements of Operations: Three Months Ended March 31, 2024 Advice & Wealth Management Asset Management Retirement & Protection Solutions Corporate & Other Total Segments Non-operating Revenue Total (in millions) Management and financial advice fees: Asset management fees: Retail $ — $ 530 $ — $ — $ 530 $ — $ 530 Institutional — 159 — — 159 — 159 Advisory fees 1,303 — — — 1,303 — 1,303 Financial planning fees 112 — — — 112 — 112 Transaction and other fees 94 50 14 — 158 — 158 Total management and financial advice fees 1,509 739 14 — 2,262 — 2,262 Distribution fees: Mutual funds 196 56 — — 252 — 252 Insurance and annuity 247 39 84 — 370 — 370 Off-balance sheet brokerage cash 50 — — — 50 — 50 Other products 105 — — — 105 — 105 Total distribution fees 598 95 84 — 777 — 777 Other revenues 60 5 — — 65 — 65 Total revenue from contracts with customers 2,167 839 98 — 3,104 — 3,104 Revenue from other sources (1) 572 16 814 129 1,531 49 1,580 Total segment gross revenues 2,739 855 912 129 4,635 49 4,684 Banking and deposit interest expense ( 179 ) — — ( 8 ) ( 187 ) — ( 187 ) Total segment net revenues 2,560 855 912 121 4,448 49 4,497 Elimination of intersegment revenues ( 225 ) ( 24 ) ( 106 ) 7 ( 348 ) ( 3 ) ( 351 ) Total net revenues $ 2,335 $ 831 $ 806 $ 128 $ 4,100 $ 46 $ 4,146 10 Index AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) Three Months Ended March 31, 2023 Advice & Wealth Management Asset Management Retirement & Protection Solutions Corporate & Other Total Segments Non-operating Revenue Total (in millions) Management and financial advice fees: Asset management fees: Retail $ — $ 491 $ — $ — $ 491 $ — $ 491 Institutional — 152 — — 152 — 152 Advisory fees 1,109 — — — 1,109 — 1,109 Financial planning fees 101 — — — 101 — 101 Transaction and other fees 89 48 14 — 151 — 151 Total management and financial advice fees 1,299 691 14 — 2,004 — 2,004 Distribution fees: Mutual funds 175 52 — — 227 — 227 Insurance and annuity 211 38 80 — 329 — 329 Off-balance sheet brokerage cash 126 — — — 126 — 126 Other products 81 — — — 81 — 81 Total distribution fees 593 90 80 — 763 — 763 Other revenues 58 5 — — 63 — 63 Total revenue from contracts with customers 1,950 786 94 — 2,830 — 2,830 Revenue from other sources (1) 418 13 730 130 1,291 47 1,338 Total segment gross revenues 2,368 799 824 130 4,121 47 4,168 Banking and deposit interest expense ( 103 ) — — ( 4 ) ( 107 ) — ( 107 ) Total segment net revenues 2,265 799 824 126 4,014 47 4,061 Elimination of intersegment revenues ( 201 ) ( 17 ) ( 102 ) 4 ( 316 ) ( 3 ) ( 319 ) Total net revenues $ 2,064 $ 782 $ 722 $ 130 $ 3,698 $ 44 $ 3,742 (1) Revenues not included in the scope of the revenue from contracts with customers standard. The amounts primarily consist of revenue associated with insurance and annuity products and investment income from financial instruments. The following discussion describes the nature, timing, and uncertainty of revenues and cash flows arising from the Company's contracts with customers on a consolidated basis. Management and Financial Advice Fees Asset Management Fees The Company earns revenue for performing asset management services for retail and institutional clients. The revenue is earned based on a fixed or tiered rate applie

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) substantially the same and are satisfied each day over the contract term. Advisory fees are billed on a monthly basis on the prior month end assets. Financial Planning Fees The Company earns revenue for providing financial plans to its clients. The revenue earned for each financial plan is either a fixed fee (received monthly, quarterly or annually) or a variable fee (received monthly) based on a contractual fixed rate applied, as a percentage, to the prior month end assets held in a client's investment advisory account. The financial planning fee is based on the complexity of a client's financial and life situation and his or her advisor's experience. The performance obligation is satisfied at the time the financial plan is delivered to the customer. The Company records a contract liability for the unearned revenue when cash is received before the plan is delivered. The financial plan contracts with clients are annual contracts. Amounts recorded as a contract liability are recognized as revenue when the financial plan is delivered, which occurs within the annual contract period. For fixed fee arrangements, revenue is recognized when the financial plan is delivered. The Company accrues revenue for any amounts that have not been received at the time the financial plan is delivered. For variable fee arrangements, revenue is recognized for cash that has been received when the financial plan is delivered. The amount received after the plan is delivered is variably constrained due to factors outside the Company's control including market volatility and client behavior. The revenue is recognized when it is probable that a significant reversal will not occur and is generally each month end as the advisory account balance uncertainty is resolved. Contract liabilities for financial planning fees, which are included in Other liabilities, were $ 167 million and $ 168 million as of March 31, 2024 and Dece

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