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    Ameriprise Financial Inc (AMP)

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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 .

    1. 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 .
    2. 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 .
    3. 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 .
    NamePositionStart DateShort Bio
    James M. CracchioloChairman and Chief Executive OfficerSep 2005James M. Cracchiolo has been the Chairman and Chief Executive Officer of Ameriprise Financial since September 2005, when the company completed its spin-off from American Express. He previously held several senior-level positions at American Express .**
    Walter S. BermanExecutive Vice President and Chief Financial OfficerSep 2005Walter S. Berman has been the Executive Vice President and Chief Financial Officer of Ameriprise Financial since September 2005. He was previously the CFO of American Express Financial Corporation starting in January 2003 .**
    William F. TruscottChief Executive Officer, Global Asset ManagementSep 2012William F. Truscott has been the CEO of Global Asset Management at Ameriprise Financial since September 2012. He previously served as CEO of U.S. Asset Management and President of Annuities starting in May 2010 .**
    Joseph E. SweeneyPresident, Advice & Wealth Management, Products and Service DeliveryJun 2012Joseph E. Sweeney has been serving as the President of Advice & Wealth Management, Products and Service Delivery at Ameriprise Financial since June 2012. He was previously the President of Advice & Wealth Management, Products and Services from May 2009 .**
    William DaviesExecutive Vice President and Global Chief Investment OfficerFeb 2022William Davies has been the Executive Vice President and Global Chief Investment Officer at Ameriprise Financial since February 2022. He was previously the Global Head of Equities from July 2017 until February 2022 .**
    Gerard SmythExecutive Vice President and Chief Information OfficerAug 2020Gerard Smyth has been the Executive Vice President and Chief Information Officer at Ameriprise Financial since August 2020. He previously served as Executive Vice President-Technology for Ameriprise's Advice & Wealth Management Business starting in August 2013 .**
    Heather J. MellohExecutive Vice President and General CounselJun 2022Heather J. Melloh has been the Executive Vice President and General Counsel at Ameriprise Financial since June 2022. She was previously Senior Vice President & Assistant General Counsel from January 2020 to June 2022 .**
    Patrick H. O’ConnellExecutive Vice President, Ameriprise Advisor Group & Ameriprise Financial Institutions GroupFeb 2013Patrick H. O’Connell is the Executive Vice President of the Ameriprise Advisor Group & Ameriprise Financial Institutions Group at Ameriprise Financial since February 2013. He previously served as Senior Vice President for the employee advisor business in the eastern U.S. .**
    Gumer AlveroPresident, Insurance & AnnuitiesFeb 2022Gumer Alvero has been the President of Insurance & Annuities at Ameriprise Financial since February 2022. He previously served as Executive Vice President and General Manager - Insurance and Annuities from April 2021 to February 2022 .**
    Kelli A. Hunter PetruzilloExecutive Vice President of Human ResourcesSep 2005Kelli A. Hunter Petruzillo has been the Executive Vice President of Human Resources at Ameriprise Financial since September 2005. She previously served as Executive Vice President of Human Resources at AEFC starting in June 2005 .**
    Dawn M. BrockmanSenior Vice President and Corporate Controller (Principal Accounting Officer)Sep 2022Dawn M. Brockman has been the Senior Vice President and Controller (Principal Accounting Officer) at Ameriprise Financial since September 2022. She previously served as Interim Controller from July 2022 until September 2022 .**
    Deirdre D. McGrawExecutive Vice President-Marketing, Communications and Community RelationsMay 2014Deirdre D. McGraw has been the Executive Vice President-Marketing, Communications and Community Relations at Ameriprise Financial since May 2014. She previously served as Executive Vice President, Corporate Communications and Community Relations starting in February 2010 .**
    1. 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?
    2. 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?
    3. 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?
    4. 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?
    5. 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?
    Program DetailsProgram 1
    Approval DateJuly 24, 2023
    End Date/DurationThrough September 30, 2025
    Total additional amount$3.5 billion
    Remaining authorization amount$1.5 billion as of September 30, 2024
    DetailsThe program aims to return capital to shareholders and potentially increase the value of remaining shares. Purchases can be commenced or suspended at any time without prior notice.
    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2024$550Senior Notes3.715.3% = ($550 / $3,595) * 100
    2025$500Senior Notes3.013.9% = ($500 / $3,595) * 100
    2026$500Senior Notes2.913.9% = ($500 / $3,595) * 100
    2028$600Senior Notes5.716.7% = ($600 / $3,595) * 100
    2032$500Senior Notes4.513.9% = ($500 / $3,595) * 100
    2033$750Senior Notes5.220.9% = ($750 / $3,595) * 100
    N/A$201Short-Term BorrowingN/A5.6% = ($201 / $3,595) * 100

    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 .
    NameStart DateEnd DateReason for Change
    PricewaterhouseCoopers LLP2010 PresentCurrent auditor

    Recent developments and announcements about AMP.

    Financial Reporting

      Earnings Call

      ·
      5 days ago

      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

      • 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.

      Management’s Forward Guidance

      • 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.

      Strategic Initiatives

      • 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.

      Analyst Questions and Management Responses

      • 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.

      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

      ·
      6 days ago

      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

      • 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.

      Assets Under Management and Advisement (AUMA)

      • 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.

      Segment Highlights

      Advice & Wealth Management (AWM)

      • 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.

      Asset Management

      • 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.

      Retirement & Protection Solutions

      • Pretax Adjusted Operating Earnings: $213 million, a 5% increase.
      • Sales Growth: 13%, driven by demand for structured variable annuities and variable universal life products.

      Capital Return to Shareholders

      • Q4 2024: $768 million returned to shareholders.
      • Full Year 2024: $2.8 billion returned, demonstrating strong free cash flow generation and balance sheet strength.

      Recognition

      • Ameriprise Financial was named one of “America’s Best Companies” for 2025 by Forbes, highlighting its strong market position and operational excellence.

      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

      • 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.

      For more detailed financial metrics and segment-specific performance, refer to the full earnings release.

    Financial Actions

      Debt Issuance

      ·
      Nov 26, 2024, 10:05 PM

      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 .