Ameriprise Financial Files Q2 2024 10-Q

TL;DR

**AMP Q2 2024 10-Q FILED: Check financials for investment advice & distribution services.**

AI Summary

Ameriprise Financial Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers the second quarter and the first half of the fiscal year. Key financial data and operational details for these periods are presented, reflecting the company's performance in investment advice and distribution services.

Why It Matters

This filing provides investors and analysts with a detailed look at Ameriprise Financial's financial health and operational performance during the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing (10-Q) that provides standard financial disclosures and does not indicate any unusual or elevated risks.

Key Numbers

• 20240630 — End of Reporting Period (The 10-Q covers financial activities up to this date.)
• 20240806 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• AMERIPRISE FINANCIAL INC (company) — Filer of the 10-Q
• 0000820027 (company) — Central Index Key for Ameriprise Financial Inc.
• 20240630 (date) — Period of report for the 10-Q
• 20240806 (date) — Filing date of the 10-Q
• MINNEAPOLIS (location) — City of Ameriprise Financial's business and mail address

FAQ

Key Financial Figures

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

Filing Documents

• amp-20240630.htm (10-Q) — 7147KB
• ampexhibit311-x63024xuse.htm (EX-31.1) — 10KB
• ampexhibit312-x63024xuse.htm (EX-31.2) — 10KB
• ampexhibit32-x63024xuse.htm (EX-32) — 8KB
• 0000820027-24-000079.txt ( ) — 36516KB
• amp-20240630.xsd (EX-101.SCH) — 108KB
• amp-20240630_cal.xml (EX-101.CAL) — 196KB
• amp-20240630_def.xml (EX-101.DEF) — 1005KB
• amp-20240630_lab.xml (EX-101.LAB) — 1417KB
• amp-20240630_pre.xml (EX-101.PRE) — 1189KB
• amp-20240630_htm.xml (XML) — 10330KB

Financial Information

Part I. Financial Information 3

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 3 Consolidated Statements of Operations — Three and six months ended June 3 0 , 2024 and 2023 3 Consolidated Statements of Comprehensive Income — Three and six months ended June 3 0 , 2024 and 2023 4 Consolidated Balance Sheets — June 3 0 , 2024 and December 31, 2023 5 Consolidated Statements of Equity — Three a nd six months ended June 3 0 , 2024 and 2023 6 Consolidated Statements of Cash Flows — Six months ended June 3 0 , 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 16 5. Investments 20 6. Financing Receivables 24 7. Deferred Acquisition Costs and Deferred Sales Inducement Costs 29 8. Policyholder Account Balances, Future Policy Benefits and Claims 30 9. Separate Account Assets and Liabilities 41 10. Market Risk Benefits 42 11. Debt 47 12. Fair Values of Assets and Liabilities 48 13. Offsetting Assets and Liabilities 58 14. Derivatives and Hedging Activities 60 15. Shareholders' Equity 65 16. Income Taxes 67 17. Contingencies 68 18. Earnings per Share 69 19. Segment Information 69

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 72

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 98

Controls and Procedures

Item 4. Controls and Procedures 99

Other Information

Part II. Other Information 101

Legal Proceedings

Item 1. Legal Proceedings 101

Risk Factors

Item 1A. Risk Factors 101

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 101

Other Information

Item 5. Other Information 101

Exhibits

Item 6. Exhibits 102

Signatures

Signatures 103 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions, except per share amounts) Revenues Management and financial advice fees $ 2,456 $ 2,199 $ 4,855 $ 4,336 Distribution fees 505 482 1,011 999 Net investment income 921 811 1,822 1,509 Premiums, policy and contract charges 381 383 771 745 Other revenues 129 132 258 263 Total revenues 4,392 4,007 8,717 7,852 Banking and deposit interest expense 172 131 351 234 Total net revenues 4,220 3,876 8,366 7,618 Benefits and expenses Distribution expenses 1,450 1,248 2,869 2,474 Interest credited to fixed accounts 185 161 317 325 Benefits, claims, losses and settlement expenses 331 327 626 628 Remeasurement (gains) losses of future policy benefit reserves ( 8 ) — ( 12 ) ( 5 ) Change in fair value of market risk benefits 110 ( 99 ) 92 390 Amortization of deferred acquisition costs 61 61 122 123 Interest and debt expense 83 84 165 156 General and administrative expense 957 967 1,917 1,904 Total benefits and expenses 3,169 2,749 6,096 5,995 Pretax income 1,051 1,127 2,270 1,623 Income tax provision 222 237 451 316 Net income $ 829 $ 890 $ 1,819 $ 1,307 Earnings per share Basic $ 8.16 $ 8.36 $ 17.80 $ 12.20 Diluted $ 8.02 $ 8.21 $ 17.49 $ 11.97 See Notes to Consolidated Financial Statements. 3 Index AMERIPRISE FINANCIAL, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Net income $ 829 $ 890 $ 1,819 $ 1,307 Other comprehensive income (loss), net of tax: Net unrealized gains (losses) on securities ( 135 ) ( 338 ) ( 313 ) 92 Net unrealized gains (losses) on derivatives — — — 2 Effect of changes in discount rate assumptions on certain long-duration contracts 62 59 131 ( 6 ) Effect of changes in instrument-specific credit risk on market risk benef

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 June 30, 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 $ — $ 522 $ — $ — $ 522 $ — $ 522 Institutional — 161 — — 161 — 161 Advisory fees 1,361 — — — 1,361 — 1,361 Financial planning fees 110 — — — 110 — 110 Transaction and other fees 100 52 16 — 168 — 168 Total management and financial advice fees 1,571 735 16 — 2,322 — 2,322 Distribution fees: Mutual funds 199 56 — — 255 — 255 Insurance and annuity 260 40 84 — 384 — 384 Off-balance sheet brokerage cash 40 — — — 40 — 40 Other products 109 — — — 109 — 109 Total distribution fees 608 96 84 — 788 — 788 Other revenues 66 — — 1 67 — 67 Total revenue from contracts with customers 2,245 831 100 1 3,177 — 3,177 Revenue from other sources (1) 571 17 828 117 1,533 51 1,584 Total segment gross revenues 2,816 848 928 118 4,710 51 4,761 Banking and deposit interest expense ( 172 ) — — ( 7 ) ( 179 ) — ( 179 ) Total segment net revenues 2,644 848 928 111 4,531 51 4,582 Elimination of intersegment revenues ( 236 ) ( 23 ) ( 108 ) 7 ( 360 ) ( 2 ) ( 362 ) Total net revenues $ 2,408 $ 825 $ 820 $ 118 $ 4,171 $ 49 $ 4,220 10 Index AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) Three Months Ended June 30, 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 $ — $ 490 $ — $ — $ 490 $ — $ 490 Institutional — 157 — — 157 — 157 Advisory fees 1,154 — — — 1,154 — 1,154 Financial planning fees 104 — — — 104 — 104 Transaction and other fees 96 48 14 — 158 — 158 Total management and financial advice fees 1,354 695 14 — 2,063 — 2,063 Distribution fees: Mutual funds 179 51 — — 230 — 230 Insurance and annuity 222 39 82 — 343 — 343 Off-balance sheet brokerage cash 84 — — — 84 — 84 Other products 84 — — — 84 — 84 Total distribution fees 569 90 82 — 741 — 741 Other revenues 59 7 — — 66 — 66 Total revenue from contracts with customers 1,982 792 96 — 2,870 — 2,870 Revenue from other sources (1) 492 16 762 151 1,421 53 1,474 Total segment gross revenues 2,474 808 858 151 4,291 53 4,344 Banking and deposit interest expense ( 131 ) — — ( 3 ) ( 134 ) — ( 134 ) Total segment net revenues 2,343 808 858 148 4,157 53 4,210 Elimination of intersegment revenues ( 211 ) ( 19 ) ( 104 ) 3 ( 331 ) ( 3 ) ( 334 ) Total net revenues $ 2,132 $ 789 $ 754 $ 151 $ 3,826 $ 50 $ 3,876 11 Index AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) Six Months Ended June 30, 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 $ — $ 1,052 $ — $ — $ 1,052 $ — $ 1,052 Institutional — 320 — — 320 — 320 Advisory fees 2,664 — — — 2,664 — 2,664 Financial planning fees 222 — — — 222 — 222 Transaction and other fees 194 102 30 — 326 — 326 Total management and financial advice fees 3,080 1,474 30 — 4,584 — 4,584 Distribution fees: Mutual funds 395 112 — — 507 — 507 Insurance and annuity 507 79 168 — 754 — 754 Off-balance sheet brokerage cash 90 — — — 90 — 90 Other products 214 — — — 214 — 214 Total distribution fees 1,206 191 168 — 1,565 — 1,565 Other revenues 126 5 — 1 132 — 132 Total revenue from contracts with customers 4,412 1,670 198 1 6,281 — 6,281 Revenue from other sources (1) 1,143 33 1,642 246 3,064 100 3,164 Total segment gross revenues 5,555 1,703 1,840 247 9,345 100 9,445 Banking and deposit interest expense ( 351 ) — — ( 15 ) ( 366 ) — ( 366 ) Total segment net revenues 5,204 1,703 1,840 232 8,979 100 9,079 Elimination of intersegment revenues ( 461 ) ( 47 ) ( 214 ) 14 ( 708 ) ( 5 ) ( 713 ) Total net revenues $ 4,743 $ 1,656 $ 1,626 $ 246 $ 8,271 $ 95 $ 8,366 12 Index AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) Six Months Ended June 30, 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 $ — $ 981 $ — $ — $ 981 $ — $ 981 Institutional — 309 — — 309 — 309 Advisory fees 2,263 — — — 2,263 — 2,263 Financial planning fees 205 — — — 205 — 205 Transaction and other fees 185 96 28 — 309 — 309 Total management and financial advice fees 2,653 1,386 28 — 4,067 — 4,067 Distribution fees: Mutual funds 354 103 — — 457 — 457 Insurance and annuity 433 77 162 — 672 — 672 Off-balance sheet brokerage cash 210 — — — 210 — 210 Other products 165 — — — 165 — 165 Total distribution fees 1,162 180 162 — 1,504 — 1,504 Other revenues 117 12 — — 129 — 129 Total revenue from contracts with customers 3,932 1,578 190 — 5,700 — 5,700 Revenue from other sources (1) 910 29 1,492 281 2,712 100 2,812 Total segment gross revenues 4,842 1,607 1,682 281 8,412 100 8,512 Banking and deposit interest expense ( 234 ) — — ( 7 ) ( 241 ) — ( 241 ) Total segment net revenues 4,608 1,607 1,682 274 8,171 100 8,271 Elimination of intersegment revenues ( 412 ) ( 36 ) ( 206 ) 7 ( 647 ) ( 6 ) ( 653 ) Total net revenues $ 4,196 $ 1,571 $ 1,476 $ 281 $ 7,524 $ 94 $ 7,618 (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 b

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

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