Ameriprise Financial Q3 2024 Results Filed

Ticker: AMP · Form: 10-Q · Filed: Nov 1, 2024 · CIK: 820027

Sentiment: neutral

Topics: 10-Q, financial-results, quarterly-report

TL;DR

AMER Q3 earnings report is in, showing performance vs. last year.

AI Summary

Ameriprise Financial Inc. reported its third-quarter results for the period ending September 30, 2024. The company's filing details financial performance across its various segments, including Investment Advice and Distribution Services, for both the quarter and the year-to-date period, comparing them against the same periods in 2023.

Why It Matters

This filing provides investors with the latest financial performance data for Ameriprise Financial, crucial for understanding the company's profitability and operational trends in the investment services sector.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing financial results and does not indicate any unusual or significant risks.

Key Numbers

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is the quarter ended September 30, 2024.

What is the company's Central Index Key (CIK)?

The company's Central Index Key (CIK) is 0000820027.

What are the main business segments mentioned in the filing context?

The filing context mentions 'Investment Advice' and 'Distribution Service' as key business segments.

When was the company formerly known as American Express Financial Corp?

The company was formerly known as American Express Financial Corp until a name change on May 13, 2003.

What is the filing date of this 10-Q report?

This 10-Q report was filed as of November 1, 2024.

Filing Stats: 4,885 words · 20 min read · ~16 pages · Grade level 18.3 · Accepted 2024-11-01 15:11:55

Key Financial Figures

Filing Documents

Financial Information

Part I. Financial Information 3

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 3 Consolidated Statements of Operations — Three and nine months ended September 30, 2024 and 2023 3 Consolidated Statements of Comprehensive Income — Three and nine months ended September 30, 2024 and 2023 4 Consolidated Balance Sheets — September 30, 2024 and December 31, 2023 5 Consolidated Statements of Equity — Three and nine months ended September 30, 2024 and 2023 6 Consolidated Statements of Cash Flows — Nine months ended September 30, 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 59 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 70

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 99

Controls and Procedures

Item 4. Controls and Procedures 101

Other Information

Part II. Other Information 102

Legal Proceedings

Item 1. Legal Proceedings 102

Risk Factors

Item 1A. Risk Factors 102

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 102

Other Information

Item 5. Other Information 102

Exhibits

Item 6. Exhibits 103

Signatures

Signatures 104 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (in millions, except per share amounts) Revenues Management and financial advice fees $ 2,573 $ 2,287 $ 7,428 $ 6,623 Distribution fees 513 463 1,524 1,462 Net investment income 934 809 2,756 2,318 Premiums, policy and contract charges 409 390 1,180 1,135 Other revenues 131 127 389 390 Total revenues 4,560 4,076 13,277 11,928 Banking and deposit interest expense 163 151 514 385 Total net revenues 4,397 3,925 12,763 11,543 Benefits and expenses Distribution expenses 1,539 1,297 4,408 3,771 Interest credited to fixed accounts 118 139 435 464 Benefits, claims, losses and settlement expenses 430 120 1,056 748 Remeasurement (gains) losses of future policy benefit reserves ( 22 ) ( 12 ) ( 34 ) ( 17 ) Change in fair value of market risk benefits 566 168 658 558 Amortization of deferred acquisition costs 59 62 181 185 Interest and debt expense 87 84 252 240 General and administrative expense 975 950 2,892 2,854 Total benefits and expenses 3,752 2,808 9,848 8,803 Pretax income 645 1,117 2,915 2,740 Income tax provision 134 245 585 561 Net income $ 511 $ 872 $ 2,330 $ 2,179 Earnings per share Basic $ 5.09 $ 8.31 $ 22.93 $ 20.48 Diluted $ 5.00 $ 8.14 $ 22.53 $ 20.08 See Notes to Consolidated Financial Statements. 3 Index AMERIPRISE FINANCIAL, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (in millions) Net income $ 511 $ 872 $ 2,330 $ 2,179 Other comprehensive income (loss), net of tax: Net unrealized gains (losses) on securities 1,005 ( 623 ) 692 ( 531 ) Net unrealized gains (losses) on derivatives — — — 2 Effect of changes in discount rate assumptions on certain long-duration contracts ( 147 ) 174 ( 16 ) 168 Effect of changes in instrumen

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 September 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 $ — $ 540 $ — $ — $ 540 $ — $ 540 Institutional — 143 — — 143 — 143 Model delivery (2) — 21 — — 21 — 21 Advisory fees 1,451 — — — 1,451 — 1,451 Financial planning fees 111 — — — 111 — 111 Transaction and other fees 97 52 14 — 163 — 163 Total management and financial advice fees 1,659 756 14 — 2,429 — 2,429 Distribution fees: Mutual funds 209 57 — — 266 — 266 Insurance and annuity 266 41 87 — 394 — 394 Off-balance sheet brokerage cash 32 — — — 32 — 32 Other products 107 — — — 107 — 107 Total distribution fees 614 98 87 — 799 — 799 Other revenues 66 5 — ( 1 ) 70 — 70 Total revenue from contracts with customers 2,339 859 101 ( 1 ) 3,298 — 3,298 Revenue from other sources (1) 566 23 872 123 1,584 56 1,640 Total segment gross revenues 2,905 882 973 122 4,882 56 4,938 Banking and deposit interest expense ( 163 ) — — ( 7 ) ( 170 ) — ( 170 ) Total segment net revenues 2,742 882 973 115 4,712 56 4,768 Elimination of intersegment revenues ( 237 ) ( 24 ) ( 113 ) 7 ( 367 ) ( 4 ) ( 371 ) Total net revenues $ 2,505 $ 858 $ 860 $ 122 $ 4,345 $ 52 $ 4,397 10 Index AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) Three Months Ended September 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 $ — $ 499 $ — $ — $ 499 $ — $ 499 Institutional — 148 — — 148 — 148 Model delivery (2) — 17 — — 17 — 17 Advisory fees 1,228 — — — 1,228 — 1,228 Financial planning fees 102 — — — 102 — 102 Transaction and other fees 94 50 14 — 158 — 158 Total management and financial advice fees 1,424 714 14 — 2,152 — 2,152 Distribution fees: Mutual funds 184 53 — — 237 — 237 Insurance and annuity 226 39 82 — 347 — 347 Off-balance sheet brokerage cash 58 — — — 58 — 58 Other products 84 — — — 84 — 84 Total distribution fees 552 92 82 — 726 — 726 Other revenues 57 2 — — 59 — 59 Total revenue from contracts with customers 2,033 808 96 — 2,937 — 2,937 Revenue from other sources (1) 525 18 780 149 1,472 13 1,485 Total segment gross revenues 2,558 826 876 149 4,409 13 4,422 Banking and deposit interest expense ( 151 ) — — ( 6 ) ( 157 ) — ( 157 ) Total segment net revenues 2,407 826 876 143 4,252 13 4,265 Elimination of intersegment revenues ( 217 ) ( 21 ) ( 104 ) 5 ( 337 ) ( 3 ) ( 340 ) Total net revenues $ 2,190 $ 805 $ 772 $ 148 $ 3,915 $ 10 $ 3,925 11 Index AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) Nine Months Ended September 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 $ — $ 1,592 $ — $ — $ 1,592 $ — $ 1,592 Institutional — 424 — — 424 — 424 Model delivery (2) — 60 — — 60 — 60 Advisory fees 4,115 — — — 4,115 — 4,115 Financial planning fees 333 — — — 333 — 333 Transaction and other fees 291 154 44 — 489 — 489 Total management and financial advice fees 4,739 2,230 44 — 7,013 — 7,013 Distribution fees: Mutual funds 604 169 — — 773 — 773 Insurance and annuity 773 120 255 — 1,148 — 1,148 Off-balance sheet brokerage cash 122 — — — 122 — 122 Other products 321 — — — 321 — 321 Total distribution fees 1,820 289 255 — 2,364 — 2,364 Other revenues 192 10 — — 202 — 202 Total revenue from contracts with customers 6,751 2,529 299 — 9,579 — 9,579 Revenue from other sources (1) 1,709 56 2,514 369 4,648 156 4,804 Total segment gross revenues 8,460 2,585 2,813 369 14,227 156 14,383 Banking and deposit interest expense ( 514 ) — — ( 22 ) ( 536 ) — ( 536 ) Total segment net revenues 7,946 2,585 2,813 347 13,691 156 13,847 Elimination of intersegment revenues ( 698 ) ( 71 ) ( 327 ) 21 ( 1,075 ) ( 9 ) ( 1,084 ) Total net revenues $ 7,248 $ 2,514 $ 2,486 $ 368 $ 12,616 $ 147 $ 12,763 12 Index AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) Nine Months Ended September 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 $ — $ 1,480 $ — $ — $ 1,480 $ — $ 1,480 Institutional — 425 — — 425 — 425 Model delivery (2) — 49 — — 49 — 49 Advisory fees 3,491 — — — 3,491 — 3,491 Financial planning fees 307 — — — 307 — 307 Transaction and other fees 279 146 42 — 467 — 467 Total management and financial advice fees 4,077 2,100 42 — 6,219 — 6,219 Distribution fees: Mutual funds 538 156 — — 694 — 694 Insurance and annuity 659 116 244 — 1,019 — 1,019 Off-balance sheet brokerage cash 268 — — — 268 — 268 Other products 249 — — — 249 — 249 Total distribution fees 1,714 272 244 — 2,230 — 2,230 Other revenues 174 14 — — 188 — 188 Total revenue from contracts with customers 5,965 2,386 286 — 8,637 — 8,637 Revenue from other sources (1) 1,435 47 2,272 430 4,184 113 4,297 Total segment gross revenues 7,400 2,433 2,558 430 12,821 113 12,934 Banking and deposit interest expense ( 385 ) — — ( 13 ) ( 398 ) — ( 398 ) Total segment net revenues 7,015 2,433 2,558 417 12,423 113 12,536 Elimination of intersegment revenues ( 629 ) ( 57 ) ( 310 ) 12 ( 984 ) ( 9 ) ( 993 ) Total net revenues $ 6,386 $ 2,376 $ 2,248 $ 429 $ 11,439 $ 104 $ 11,543 (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. (2) Current year disclosure has been expanded to separately state model delivery revenue. Prior periods have been updated to conform to current year presentation. The following discussion describes the nature, timing, and uncertainty of revenues and cash flows arising from the Company's contracts

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) Advisory Fees The Company earns revenue for performing investment advisory services for certain brokerage customer's discretionary and non-discretionary managed accounts. The revenue is earned based on a contractual fixed rate applied, as a percentage, to the market value of assets held in the account. The investment advisory performance obligation is considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. Advisory fee

View Full Filing

View this 10-Q filing on SEC EDGAR

View on Read The Filing