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Ameriprise Financial, Inc. is a diversified financial services company with a nearly 130-year history, operating primarily through its subsidiaries. The company focuses on Wealth Management and Asset Management as its main go-to-market strategies, providing financial planning, advice, and investment management services to a wide range of clients . Ameriprise also offers retirement and protection solutions, including annuities and insurance products, through its RiverSource Life companies . The company's revenues and net income are significantly influenced by investment performance, asset management, and distribution fees .
- Wealth Management - Provides financial planning, advice, cash management, banking products, and full-service brokerage services to retail clients through a network of over 10,000 financial advisors, targeting households with $500,000 to $5,000,000 in investable assets .
- Asset Management - Operates under the Columbia Threadneedle Investments® brand, offering investment management services to retail, high net worth, and institutional clients globally, with products including mutual funds, exchange-traded funds, and variable product funds .
- Retirement & Protection Solutions - Offers variable annuities, life insurance, and disability income insurance products through RiverSource Life companies, earning revenues from fees based on account balances and premiums .
- Given your decision to retain the long-term care business, can you elaborate on how you assessed the potential risks and valuation differences between retaining the block and reinsuring it, and how this decision maximizes shareholder value?
- Despite strong investment performance in Asset Management and improved net outflows, what specific strategies are you implementing to reverse the outflow trend and attract new inflows, particularly in retail and institutional channels?
- You mentioned that total company G&A expenses are expected to be flattish for 2024 and 2025, with Asset & Wealth Management expenses growing by 4%-5%; how do you plan to balance these investments with cost controls to maintain profitability?
- With an 80% capital return to shareholders projected for this year and likely next year, given potential market uncertainties and investment opportunities, how sustainable is this level of capital return in the long term?
- As you expand lending products like pledged loans and residential mortgages to protect spreads, how are you addressing associated credit risks and ensuring underwriting standards remain robust amid competitive pressures?
Competitors mentioned in the company's latest 10K filing.
- Securities broker-dealers, independent broker-dealers, financial planning firms, registered investment advisers, insurance companies, and other banks and financial institutions: Compete with Ameriprise's Advice & Wealth Management segment to attract and retain financial advisors and clients .
- Wirehouses, regional broker-dealers, independent broker-dealers, insurers, banks, asset managers, registered investment advisers, and direct distributors: Compete with Ameriprise's financial advisors for clients .
- Firms in the asset management industry: Compete globally with Ameriprise's Asset Management segment to acquire and retain managed and administered assets .
- Stock and mutual insurance companies: Competitors of Ameriprise's Retirement & Protection Solutions segment in the sale of variable annuity and insurance products .
Recent developments and announcements about AMP.
Financial Reporting
- Revenue and Earnings: Total revenues for the quarter reached $4.5 billion, up 13% year-over-year, driven by strong asset growth and transactional activity. Adjusted operating earnings were $965 million, an 18% increase, with earnings per diluted share rising 23% to $9.54.
- Assets Under Management (AUM): AUM grew to $1.5 trillion, a 10% increase, supported by strong client inflows and equity market appreciation.
- Return on Equity (ROE): Ameriprise achieved an industry-leading ROE of 52.7%, up from 49.7% a year ago.
- Market Conditions: Management noted that while the Federal Reserve has slowed the pace of rate cuts, the economic environment remains favorable with resilient equity markets and cooling inflation.
- Cash Deployment: Ameriprise expects clients to continue reallocating cash into wrap and other investment products as markets and rates normalize, creating opportunities for further growth.
- Banking Products: The company plans to expand its banking product portfolio in 2025, including the launch of fixed pledge loans, HELOCs, CDs, and checking accounts, which are expected to drive loan growth and client engagement.
- Wealth Management: Adviser productivity reached a record $1 million per adviser, reflecting investments in technology and client engagement tools. Wrap assets under management grew 18% to $574 billion, with wrap flows up 59% year-over-year.
- Asset Management: The company is focusing on expanding its active ETF lineup, SMA offerings, and model delivery businesses, which collectively grew to $35 billion in assets under advisement. Management also highlighted strong fund performance, with 70% of funds globally outperforming their peers over 1- and 3-year periods.
- AI and Technology: Ameriprise is leveraging AI and automation to enhance efficiency, improve client experiences, and support advisers. While the impact of generative AI is still in its early stages, the company sees significant potential for future deployment.
- Market Conditions and Flows: Analysts inquired about the sustainability of strong wrap flow trends and the potential for organic growth acceleration in 2025. Management expressed optimism, citing a positive recruiting pipeline and improving market sentiment.
- Expense Management: Management emphasized its focus on operating efficiency, noting that transformation initiatives in 2024 will continue to yield benefits in 2025. Investments in technology and AI are expected to drive further efficiencies.
- Capital Strategy: While Ameriprise remains committed to share buybacks and dividends, it is cautious about large-scale acquisitions due to high market valuations. The company is instead focusing on targeted adviser recruitment and organic growth opportunities.
- GAAP Net Income: $1,071 million, up significantly from $377 million in Q4 2023.
- Adjusted Operating Earnings: $947 million, a 24% increase compared to Q4 2023.
- Earnings Per Diluted Share (GAAP): $10.58, compared to $3.57 in Q4 2023.
- Adjusted Operating Earnings Per Diluted Share: $9.36, a 30% increase year-over-year.
- Total AUMA: $1.5 trillion, a 10% increase year-over-year.
- Client Net Inflows: $35 billion over the past 12 months, reflecting strong client engagement and growth.
- Adjusted Operating Net Revenues: $2.8 billion, up 18% year-over-year.
- Pretax Adjusted Operating Earnings: $823 million, an 18% increase.
- Total Client Assets: $1.03 trillion, a 14% increase.
- Wrap Assets: $574 billion, up 18% year-over-year.
- Net Flows: $11.1 billion, representing an 8% annualized flow rate.
- Adjusted Operating Net Revenues: $930 million, a 10% increase.
- Pretax Adjusted Operating Earnings: $251 million, up 29% year-over-year.
- Net Pretax Adjusted Operating Margin: 39%, reflecting strong performance fees and expense management.
- Pretax Adjusted Operating Earnings: $213 million, a 5% increase.
- Sales Growth: 13%, driven by demand for structured variable annuities and variable universal life products.
- Q4 2024: $768 million returned to shareholders.
- Full Year 2024: $2.8 billion returned, demonstrating strong free cash flow generation and balance sheet strength.
- Ameriprise Financial was named one of “America’s Best Companies” for 2025 by Forbes, highlighting its strong market position and operational excellence.
- Strong growth in client assets and net inflows across segments.
- Continued focus on operational efficiency and enhancing client experience.
- Robust performance in equity markets and fee-based investment advisory accounts.
Earnings Call
Ameriprise Financial (AMP) recently released its earnings call transcript, highlighting strong financial performance and strategic initiatives for the fourth quarter of 2024 and the year overall. Below is a summary of the key points:
Financial Performance
Management’s Forward Guidance
Strategic Initiatives
Analyst Questions and Management Responses
Key Takeaways
Ameriprise Financial delivered strong results in 2024, supported by robust asset growth, adviser productivity, and strategic investments in technology and product offerings. Management remains optimistic about 2025, with plans to capitalize on market opportunities, expand its banking and investment product portfolios, and further enhance operational efficiency.
For more detailed insights, please refer to the full earnings call transcript.
Earnings Report
Ameriprise Financial, Inc. (AMP) Fourth Quarter 2024 Earnings Results
Ameriprise Financial has released its earnings results for the fourth quarter of 2024, showcasing strong financial performance and growth across its business segments. Below are the key highlights:
Earnings and Revenue
Assets Under Management and Advisement (AUMA)
Segment Highlights
Advice & Wealth Management (AWM)
Asset Management
Retirement & Protection Solutions
Capital Return to Shareholders
Recognition
CEO Commentary
Jim Cracchiolo, Chairman and CEO, stated:
“Ameriprise delivered a record year in 2024, including a strong fourth quarter. We generated double-digit revenue growth with excellent earnings growth, reflecting the strength of the business and our client and advisor value propositions. Client activity and engagement were robust, and total client assets reached record levels”.
Key Trends
For more detailed financial metrics and segment-specific performance, refer to the full earnings release.
Financial Actions
Debt Issuance
Alert: AMP Creates a Direct Financial Obligation
AMP has recently created a direct financial obligation as disclosed under Item 2.03, which references the details set forth in Item 1.01. This indicates that AMP has entered into a material definitive agreement, which could potentially affect its balance sheet and financial health. The specifics of the obligation and its potential impact on AMP's financial standing are not detailed in the document, but such obligations typically involve commitments that could influence the company's liquidity and leverage ratios .