| Segment/Quarter                          | Q4 2022  **[0000820027-23-000002_q42022er.htm:2]** **[0000820027-23-000002_q42022er.htm:10]**  | Q1 2023  **[0000820027-23-000058_q12023er.htm:2]** **[0000820027-23-000067_amp-20230331.htm:92]** **[0000820027-23-000067_amp-20230331.htm:73]**  | Q2 2023  **[0000820027-23-000082_amp-20230630.htm:17]**  | Q3 2023  **[0000820027-23-000105_amp-20230930.htm:17]**  | Q4 2023  **[0000820027-24-000003_q42023er.htm:10]**  | Q1 2024  **[0000820027-24-000055_amp-20240331.htm:63]**  | Q2 2024  **[0000820027-24-000079_amp-20240630.htm:68]**  | Q3 2024  **[0000820027-24-000094_amp-20240930.htm:72]**  |
|------------------------------------------|----------------------|--------------------------|--------------|--------------|---------------|--------------|--------------|--------------|
| **Advice & Wealth Management** (USD mn)  | **2,226**            | **2,265**                | **2,132**    | **2,558**    | N/A           | **2,560**    | **2,644**    | **2,742**    |
| **Asset Management** (USD mn)            | **785**              | **799**                  | **789**      | **826**      | **845**       | **855**      | **848**      | **882**      |
| **Retirement & Protection Solutions** (USD mn) | N/A                | **824**                  | **754**      | **876**      | N/A           | **912**      | **928**      | **973**      |
| **Corporate & Other** (USD mn)           | N/A                  | **126**                  | **151**      | **149**      | N/A           | **121**      | **111**      | **115**      |

b8a4aaaf47f2100eed40746fedca13b63a4202492ae0fac5878b01e87cc37ff5

- **Strong performance and expected growth in the Retirement & Protection Solutions (RPS) segment:** Ameriprise reported that the RPS segment generated **$61 million** in profit for 2024 and anticipates continued growth and profitability. They had a **very good sales year**, particularly in higher-margin Variable Universal Life (VUL) products, and they see **good transactional growth** and a **solid liability base**, supporting a positive outlook for 2025.  **[AMP_3413759_18]**
- **Successful repositioning of the bank's investment portfolio positions Ameriprise to sustain net interest income (NII):** The company has repositioned **87%** of its bank investments into fixed-rate, high-quality, and high-yielding securities. This strategic move, along with adjustments to client crediting rates, positions them well to sustain and continue net interest income despite the impact of interest rate cuts.  **[AMP_3413759_6]** **[AMP_3413759_4]**
- **Ongoing efficiency improvements and expense management expected to enhance profitability:** Ameriprise has been proactively managing expenses through transformations and reengineering processes. In the Asset Management segment, they have taken out a lot of costs, which is expected to pay off as sales increase both in the U.S. and Europe. The company expresses confidence in continuing to manage expenses effectively while investing in growth opportunities, which is expected to enhance margins and profitability in 2025.  **[AMP_3413759_14]** **[AMP_3413759_9]**

2854269f8e43a29f9d66abb1478f55a929e8065c7beafb3a84b8194931aa1a1b

- **Asset Management business facing pressure with negative net flows and uncertainties in growth**: The Asset Management segment has been experiencing pressure, with the CEO acknowledging that the business is **"under pressure"** unless they move into passive or alternative spaces where growth is occurring.  **[AMP_3413759_9]**  Despite transforming the business and taking out costs, flow rates have been under pressure, and institutional growth is described as **"a little more lumpy"**.  **[AMP_3413759_9]**  This suggests challenges in achieving organic growth in this segment.
- **Net Interest Income (NII) uncertainties due to rate cuts and market variables**: The company's net interest income from its banking operations may be affected by recent **Fed rate cuts**. While management expresses confidence in their positioning, they acknowledge there are **"a lot of variables"** that could impact their ability to **"sustain and continue net interest income"**.  **[AMP_3413759_4]**  Additionally, **sweep cash and certificates will be "impacted by rate reduction"**  **[AMP_3413759_4]** , indicating potential pressure on NII.
- **Potential impact on earnings due to increased expenses and investments**: The company is making significant investments in technology and AI capabilities, leading to increased G&A expenses associated with **activity and investment in growth**.  **[AMP_3413759_14]**  Management mentions that part of the variable expense is in G&A and is not **"fixed overhead-type things"**.  **[AMP_3413759_14]**  This could potentially impact margins, especially if revenue generation does not keep pace with expense growth.

3688d473ff444309f899cf586d4c7e75f195303752de8dd8c6b56736127d497a

1. **Bank Net Interest Income Outlook**  
   **Q:** Is 2025 net interest income expected to be higher than 2024?  
   **A:** Management expects net interest income in 2025 to be higher than in 2024. They've repositioned the bank's fixed assets from **75% to 87%** fixed-income investments, added **$2.3 billion** in deposits from seasonal growth, and adjusted client crediting rates to align with interest rate changes. They believe they're well-positioned to sustain and grow NII despite market variables.  **[AMP_3413759_4]** **[AMP_3413759_6]** **[AMP_3413759_17]** 

2. **Capital Strategy and M&A**  
   **Q:** How are you approaching capital strategy and inorganic opportunities in AWM?  
   **A:** The company consistently redeploys capital through buybacks and dividend increases based on strong cash flows. While acquisitions are currently pricey—particularly in wealth management—they focus on targeted opportunities and bringing in the right advisors. They're investing organically to broaden channels and feel confident about growth without relying heavily on large acquisitions.  **[AMP_3413759_8]** 

3. **Asset Management Growth Drivers**  
   **Q:** Can Asset Management return to neutral organic growth, and what will drive improvement?  
   **A:** Management sees a path to neutral organic growth by transforming the business, improving efficiency, and reducing costs. Sales are increasing, especially in growth products and formats like SMAs and models, which have already grown over **$35 billion**. They're launching active ETFs in response to industry shifts, leveraging strong mutual funds, and expanding in Europe and Japan, though institutional flows may remain uneven.  **[AMP_3413759_9]** 

4. **Organic Flows and Recruiting Outlook**  
   **Q:** Do you anticipate a return to 5%+ organic growth in AWM with recruiting?  
   **A:** They've observed a pickup in net client flows and expect the wrap business to maintain strong momentum. While recruiting is competitive, their pipeline looks good, and they're enhancing technology and client experience to boost productivity. Although exact growth rates are hard to predict, they view the environment positively post-election, with potential for solid GDP and earnings growth.  **[AMP_3413759_10]** 

5. **Expense Management and G&A Expectations**  
   **Q:** How are you managing expenses and G&A in 2025?  
   **A:** The company continues to manage G&A tightly, having implemented actions in 2024 that will carry into 2025. They're investing prudently in growth and technology, including AI capabilities, while ensuring expenses align with revenue generation. Some technology transformation costs will dissipate after the first half of the year, and they expect to see benefits from prior transformations in Asset Management.  **[AMP_3413759_14]** **[AMP_3413759_19]** 

6. **Loan Growth and New Bank Products**  
   **Q:** What are your expectations for loan growth in the bank?  
   **A:** They're launching new products like fixed pledge loans in the first quarter and HELOCs in the second quarter, along with CDs and a checking account later in the year. These additions aim to increase lending and deposits, diversifying beyond residential mortgages. Over time, they expect to build a robust loan portfolio as they continue enhancing the bank's capabilities.  **[AMP_3413759_7]** 

7. **Alternative Investments Demand**  
   **Q:** Is demand for alternatives increasing in AWM?  
   **A:** They've added a digital alternatives platform for advisors, expanding due diligence and product offerings. Although currently a small segment, they anticipate growth in alternatives, especially among upper-market clients. It's in early stages, but as advisors integrate these products, alternatives are expected to become a meaningful part of portfolio allocations, despite illiquidity considerations.  **[AMP_3413759_13]** 

8. **AWM Margin Expectations**  
   **Q:** Is the 29% AWM margin sustainable after Fed rate cuts?  
   **A:** Management believes the **29%** margin achieved in the fourth quarter is a reasonable expectation going forward, despite the impact of rate cuts.  **[AMP_3413759_16]** 

9. **Client Cash Levels Outlook**  
   **Q:** Will client cash levels revert to historical norms?  
   **A:** Client cash levels are currently higher due to attractive short-term interest rates. Over time, as rates stabilize and the longer end of the curve picks up, they expect cash positions to decrease, with more money gradually shifting back into the market. However, cash levels may remain elevated compared to historical norms due to still higher rates.  **[AMP_3413759_5]** 

10. **Long Term Care Earnings**  
    **Q:** Should we expect higher Long Term Care earnings?  
    **A:** They anticipate continued growth and profitability in Long Term Care. Recent benefits arose from favorable claims and additional premium rate increases, generating **$61 million** as a positive element entering 2024. While they can't provide exact numbers, the trajectory is positive.  **[AMP_3413759_12]** 

11. **AI and Expense Efficiencies**  
    **Q:** How is AI contributing to expense efficiencies?  
    **A:** They've been deploying intelligent automation and robotics, with plans to expand AI usage. While significant efficiencies from generative AI are yet to materialize, they're applying it to enhance advisor productivity, client interactions, and research capabilities. Operating in a regulated environment requires careful implementation, but they expect AI to contribute more to efficiencies over time.  **[AMP_3413759_19]** 

a088794079878c6c51cabb26838056c44a039d857ae1dd8fc90b0c199a27f354

Ameriprise’s RPS saw a $61M profit in 2024, propelling a positive 2025 outlook. With 87% of bank investments moved to fixed-rate assets, net interest income should remain resilient despite rate cuts. Expense controls bolster margins, but AM net flows remain under pressure.

1d2bc828f850e99b4bdaca7a25a8fcb675a0520b541d3846aa0259f538983a38

**Annual guidance for FY 2025:**
- **G&A Expenses**: The company plans to manage G&A expenses prudently, with transformation costs from 2024 carrying over and severance/cloud conversion costs dissipating by mid-year  **[AMP_3413759_14]**  (no change from “flattish” guidance  **[AMP_3403933_20]** )  
- **Sweep Cash**: Sweep cash balances were stable at the end of December, with seasonal elements expected to reverse in January  **[AMP_3413759_11]**  (no prior guidance)  
- **Asset Management Margins**: 29% margin going forward  **[AMP_3413759_16]**  (no prior guidance)  
- **Loan Growth in the Bank**: New products (e.g., fixed pledge loans in Q1 2025, HELOCs in Q2 2025) expected to support loan growth  **[AMP_3413759_7]**  (no prior guidance)  
- **Wrap Flows**: Consistent wrap flow trends anticipated  **[AMP_3413759_15]**  (no prior guidance)  
- **Capital Management**: Strong capital position; plans to continue returning capital to shareholders  **[AMP_3413759_6]**  (no prior guidance)  

52a628d0d57fa1e2abf1e461682a9023f13bafe26737cffb46f2678725fe0775

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

45f0e8efde5db053414939fcbcdc47978ab90b1f345ce9562590d11ba500c698

943d105d055b2f139ff63025d11de50ed48a6a551a29c6c500f4b3caf2b4b800

| Metric / Period | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Variable Annuity Account Balances ($ billion)** | **74.385**  **[0000820027-23-000002_q42022er.htm:14]**  | **76.8**  **[0000820027-23-000067_amp-20230331.htm:107]**  | **78.5**  **[0000820027-23-000082_amp-20230630.htm:124]** **[0000820027-23-000082_amp-20230630.htm:99]**  | **75.1**  **[0000820027-23-000105_amp-20230930.htm:105]**  | **80.754**  **[0000820027-24-000003_q42023er.htm:13]**  | **84.0**  **[0000820027-24-000055_amp-20240331.htm:78]**  | **84.5**  **[0000820027-24-000079_amp-20240630.htm:83]**  | **87.7**  **[0000820027-24-000094_amp-20240930.htm:88]**  |
| **Net Amount at Risk (Life) ($ million)** | **38,638**  **[0000820027-23-000002_q42022er.htm:14]**  | **38,120**  **[0000820027-23-000058_q12023er.htm:12]**  | **37,708**  **[0000820027-23-000074_q22023er.htm:12]**  | **37,917**  **[0000820027-23-000094_q32023er.htm:12]**  | **38,406**  **[0000820027-24-000003_q42023er.htm:13]**  | **N/A** | **38,203**  **[0000820027-24-000065_q22024er.htm:12]**  | **37,895**  **[0000820027-24-000084_q32024er.htm:13]**  |
| **Ending Wrap Account Assets ($ billion)** | **412.1**  **[0000820027-23-000002_q42022er.htm:9]**  | **434.7**  **[0000820027-23-000067_amp-20230331.htm:88]**  | **454.7**  **[0000820027-23-000082_amp-20230630.htm:95]**  | **444.1**  **[0000820027-23-000105_amp-20230930.htm:101]**  | **488.2**  **[0000820027-24-000003_q42023er.htm:9]**  | **521.7**  **[0000820027-24-000055_amp-20240331.htm:74]**  | **535.0**  **[0000820027-24-000079_amp-20240630.htm:79]**  | **569.1**  **[0000820027-24-000094_amp-20240930.htm:84]**  |
| **Average Advisory Wrap Account Assets ($ billion)** | **419.9**  **[0000820027-23-000014_amp-20221231.htm:83]**  | **419.5**  **[0000820027-23-000067_amp-20230331.htm:88]**  | **431.9**  **[0000820027-23-000082_amp-20230630.htm:95]**  | **455.4**  **[0000820027-23-000105_amp-20230930.htm:101]**  | **437.8**  **[0000820027-24-000015_amp-20231231.htm:90]**  | **490.7**  **[0000820027-24-000055_amp-20240331.htm:74]**  | **512.9**  **[0000820027-24-000079_amp-20240630.htm:79]**  | **541.7**  **[0000820027-24-000094_amp-20240930.htm:84]**  |
| **Utilization of Guaranteed Withdrawals (%)** | **11.0**  **[0000820027-23-000067_amp-20230331.htm:49]**  | **11.1**  **[0000820027-23-000067_amp-20230331.htm:49]**  | **11.2**  **[0000820027-23-000082_amp-20230630.htm:50]**  | **11.5**  **[0000820027-23-000105_amp-20230930.htm:53]**  | **11.6**  **[0000820027-24-000015_amp-20231231.htm:199]**  | **11.6**  **[0000820027-24-000055_amp-20240331.htm:37]**  | **11.6**  **[0000820027-24-000079_amp-20240630.htm:40]**  | **11.9**  **[0000820027-24-000094_amp-20240930.htm:42]**  |
| **Surrender Rate (%)** | **1.4**  **[0000820027-23-000014_amp-20221231.htm:185]**  | **3.6**  **[0000820027-23-000067_amp-20230331.htm:49]**  | **3.6**  **[0000820027-23-000082_amp-20230630.htm:50]**  | **3.6**  **[0000820027-23-000105_amp-20230930.htm:53]**  | **2.6**  **[0000820027-24-000015_amp-20231231.htm:209]**  | **3.6**  **[0000820027-24-000055_amp-20240331.htm:37]**  | **3.6**  **[0000820027-24-000079_amp-20240630.htm:40]**  | **3.3**  **[0000820027-24-000094_amp-20240930.htm:42]**  |
| **Market Volatility (%)** | **N/A** | **11.1**  **[0000820027-23-000067_amp-20230331.htm:49]**  | **10.5**  **[0000820027-23-000082_amp-20230630.htm:50]**  | **N/A** | **12.1**  **[0000820027-24-000015_amp-20231231.htm:200]**  | **10.5**  **[0000820027-24-000055_amp-20240331.htm:37]**  | **10.3**  **[0000820027-24-000079_amp-20240630.htm:40]**  | **10.7**  **[0000820027-24-000094_amp-20240930.htm:42]**  |
| **Nonperformance Risk (bps)** | **95**  **[0000820027-23-000014_amp-20221231.htm:92]** **[0000820027-23-000014_amp-20221231.htm:185]**  | **115**  **[0000820027-23-000067_amp-20230331.htm:49]** **[0000820027-23-000067_amp-20230331.htm:55]**  | **100**  **[0000820027-23-000082_amp-20230630.htm:50]** **[0000820027-23-000082_amp-20230630.htm:58]**  | **105**  **[0000820027-23-000105_amp-20230930.htm:118]** **[0000820027-23-000105_amp-20230930.htm:54]** **[0000820027-23-000105_amp-20230930.htm:53]**  | **85**  **[0000820027-24-000015_amp-20231231.htm:209]** **[0000820027-24-000015_amp-20231231.htm:199]**  | **75**  **[0000820027-24-000055_amp-20240331.htm:43]**  | **75**  **[0000820027-24-000079_amp-20240630.htm:40]** **[0000820027-24-000079_amp-20240630.htm:48]**  | **70**  **[0000820027-24-000094_amp-20240930.htm:50]** **[0000820027-24-000094_amp-20240930.htm:42]**  |
| **Mortality Rate (%)** | **N/A** | **1.5**  **[0000820027-23-000067_amp-20230331.htm:49]**  | **1.6**  **[0000820027-23-000082_amp-20230630.htm:50]**  | **1.6**  **[0000820027-23-000105_amp-20230930.htm:53]**  | **1.6**  **[0000820027-24-000015_amp-20231231.htm:199]**  | **1.6**  **[0000820027-24-000055_amp-20240331.htm:37]**  | **1.6**  **[0000820027-24-000079_amp-20240630.htm:40]**  | **1.7**  **[0000820027-24-000094_amp-20240930.htm:42]**  |
| **Carrying Value of Non-Structured Fixed Maturity Securities and Commercial Mortgage Loans ($ billion)** | **4.0**  **[0000820027-23-000014_amp-20221231.htm:108]**  | **4.3**  **[0000820027-23-000067_amp-20230331.htm:109]**  | **4.9**  **[0000820027-23-000082_amp-20230630.htm:126]**  | **5.2**  **[0000820027-23-000105_amp-20230930.htm:131]**  | **5.6**  **[0000820027-24-000015_amp-20231231.htm:122]**  | **5.7**  **[0000820027-24-000055_amp-20240331.htm:93]**  | **5.2**  **[0000820027-24-000079_amp-20240630.htm:113]**  | **4.8**  **[0000820027-24-000094_amp-20240930.htm:116]**  |
| **Weighted Avg. Yield of Non-Structured Fixed Maturity Securities and Commercial Mortgage Loans (%)** | **4.1**  **[0000820027-23-000014_amp-20221231.htm:108]**  | **4.5**  **[0000820027-23-000067_amp-20230331.htm:109]**  | **4.8**  **[0000820027-23-000082_amp-20230630.htm:126]**  | **4.9**  **[0000820027-23-000105_amp-20230930.htm:131]**  | **4.9**  **[0000820027-24-000015_amp-20231231.htm:122]**  | **5.1**  **[0000820027-24-000055_amp-20240331.htm:93]**  | **5.1**  **[0000820027-24-000079_amp-20240630.htm:113]**  | **5.0**  **[0000820027-24-000094_amp-20240930.htm:116]**  |
| **Residential Mortgage Backed Securities Total ($ billion)** | **15.7**  **[0000820027-23-000014_amp-20221231.htm:160]**  | **17.7**  **[0000820027-23-000067_amp-20230331.htm:109]**  | **19.0**  **[0000820027-23-000082_amp-20230630.htm:126]**  | **19.3**  **[0000820027-23-000105_amp-20230930.htm:131]**  | **21.1**  **[0000820027-24-000015_amp-20231231.htm:122]**  | **21.4**  **[0000820027-24-000055_amp-20240331.htm:93]**  | **21.8**  **[0000820027-24-000079_amp-20240630.htm:113]**  | **23.0**  **[0000820027-24-000094_amp-20240930.htm:116]**  |
| **Residential Mortgage Backed Securities Yield (%)** | **3.5**  **[0000820027-23-000014_amp-20221231.htm:108]**  | **3.9**  **[0000820027-23-000067_amp-20230331.htm:109]**  | **4.1**  **[0000820027-23-000082_amp-20230630.htm:126]**  | **4.3**  **[0000820027-23-000105_amp-20230930.htm:131]**  | **4.4**  **[0000820027-24-000015_amp-20231231.htm:122]**  | **4.5**  **[0000820027-24-000055_amp-20240331.htm:93]**  | **4.6**  **[0000820027-24-000079_amp-20240630.htm:113]**  | **4.6**  **[0000820027-24-000094_amp-20240930.htm:116]**  |
| **Margin Loans Balance ($ billion)** | **1.2**  **[0000820027-23-000014_amp-20221231.htm:168]**  | **1.1**  **[0000820027-23-000067_amp-20230331.htm:31]**  | **1.1**  **[0000820027-23-000082_amp-20230630.htm:34]**  | **1.1**  **[0000820027-23-000105_amp-20230930.htm:35]**  | **1.1**  **[0000820027-24-000015_amp-20231231.htm:181]**  | **1.0**  **[0000820027-24-000055_amp-20240331.htm:22]**  | **1.1**  **[0000820027-24-000079_amp-20240630.htm:25]**  | **1.1**  **[0000820027-24-000094_amp-20240930.htm:27]**  |
| **Pledged Asset Lines of Credit Balance ($ million)** | **589**  **[0000820027-23-000014_amp-20221231.htm:168]**  | **546**  **[0000820027-23-000067_amp-20230331.htm:31]**  | **513**  **[0000820027-23-000082_amp-20230630.htm:34]**  | **523**  **[0000820027-23-000105_amp-20230930.htm:35]**  | **537**  **[0000820027-24-000015_amp-20231231.htm:181]**  | **563**  **[0000820027-24-000055_amp-20240331.htm:22]**  | **620**  **[0000820027-24-000079_amp-20240630.htm:25]**  | **654**  **[0000820027-24-000094_amp-20240930.htm:27]**  |
| **Contract Liabilities for Financial Planning Fees ($ million)** | **160**  **[0000820027-23-000014_amp-20221231.htm:151]**  | **159**  **[0000820027-23-000067_amp-20230331.htm:17]**  | **155**  **[0000820027-23-000082_amp-20230630.htm:20]**  | **156**  **[0000820027-23-000105_amp-20230930.htm:20]**  | **168**  **[0000820027-24-000015_amp-20231231.htm:165]**  | **167**  **[0000820027-24-000055_amp-20240331.htm:9]**  | **166**  **[0000820027-24-000079_amp-20240630.htm:11]**  | **167**  **[0000820027-24-000094_amp-20240930.htm:12]**  |
| **Weighted Equity Index (WEI) Daily Avg.** | **2,536**  **[0000820027-23-000002_q42022er.htm:8]**  | **2,664**  **[0000820027-23-000067_amp-20230331.htm:84]**  | **2,769**  **[0000820027-23-000082_amp-20230630.htm:90]**  | **2,903**  **[0000820027-23-000105_amp-20230930.htm:94]** **[0000820027-23-000094_q32023er.htm:7]**  | **2,892**  **[0000820027-24-000003_q42023er.htm:8]**  | **3,218**  **[0000820027-24-000055_amp-20240331.htm:69]**  | **3,358**  **[0000820027-24-000079_amp-20240630.htm:74]** **[0000820027-24-000065_q22024er.htm:7]**  | **3,528**  **[0000820027-24-000094_amp-20240930.htm:78]** **[0000820027-24-000084_q32024er.htm:8]**  |

60cf08667572f0036edfe59b6a8d4a7be4d8003d52b91e12fa59f5c7c5e33f64

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD]

EPS - Diluted [USD]

93c3c06e9df28857a67f41138ebde04e1c7fa4abe6822c7eeb05f099979bf449

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 **[0000820027-24-000015_amp-20231231.htm:2]** **[0001104659-24-026936_tm246480-1_s3asr.htm:4]**. Ameriprise also offers retirement and protection solutions, including annuities and insurance products, through its RiverSource Life companies **[0000820027-24-000015_amp-20231231.htm:9]** **[0000820027-24-000015_amp-20231231.htm:247]**. The company's revenues and net income are significantly influenced by investment performance, asset management, and distribution fees **[0000820027-24-000079_amp-20240630.htm:70]** **[0000820027-24-000094_amp-20240930.htm:74]**.

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 **[0000820027-24-000015_amp-20231231.htm:2]** **[0001104659-24-026936_tm246480-1_s3asr.htm:4]**.
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 **[0000820027-24-000015_amp-20231231.htm:247]** **[0001104659-24-026936_tm246480-1_s3asr.htm:4]**.
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 **[0000820027-24-000015_amp-20231231.htm:9]** **[0000820027-24-000015_amp-20231231.htm:247]**.

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9ab395e5a541e21aada5146b7880f25352fa86608aefa1ee653b0ec538ab10a2

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?

4e781b43cc44cd28b9e1054d8f8a5424c8510087b5e2b8f0badc6f9d567c6372

2df0d50d0fca13343fe2df95664026edb51bab52cb5a3a763672107342d1b3d4

**Variable Annuity Account Balances ($ billion)**

**Net Amount at Risk (Life) ($ million)**

**Ending Wrap Account Assets ($ billion)**

**Average Advisory Wrap Account Assets ($ billion)**

**Utilization of Guaranteed Withdrawals (%)**

**Surrender Rate (%)**

**Market Volatility (%)**

**Nonperformance Risk (bps)**

**Mortality Rate (%)**

**Carrying Value of Non-Structured Fixed Maturity Securities and Commercial Mortgage Loans ($ billion)**

**Weighted Avg. Yield of Non-Structured Fixed Maturity Securities and Commercial Mortgage Loans (%)**

**Residential Mortgage Backed Securities Yield (%)**

**Margin Loans Balance ($ billion)**

**Pledged Asset Lines of Credit Balance ($ million)**

**Contract Liabilities for Financial Planning Fees ($ million)**

**Weighted Equity Index (WEI) Daily Avg.**

2a1a30461ef2385a19ee15432c965ea6606f78cb2ba1564a7a016faf6fe4c18a

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024 and FY 2025
- **Guidance**:
  1. **Capital Return**: Expect to return **80% of operating earnings** to shareholders in 2024, with the same expectation for 2025, subject to market conditions  **[AMP_3403933_11]** .
  2. **Corporate Expenses**: Anticipate corporate expenses to return to around **$90 million** after completing investments in cloud and mainframe improvements over two to three quarters  **[AMP_3403933_12]** .
  3. **General and Administrative (G&A) Expenses**: Expected to be **flattish** for both 2024 and 2025  **[AMP_3403933_20]** .
  4. **Asset Management Margins**: Expected to stay in the **35% to 39% range** with good market conditions  **[AMP_3403933_10]** .
  5. **Bank Net Interest Income**: Expected to be higher due to repositioning the book and earning a large premium on floating rates  **[AMP_3403933_22]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Return of Capital to Shareholders**: Expect to return **80% of operating earnings** to shareholders  **[AMP_3394624_3]** .
  2. **Expense Management**: Plan to maintain expense discipline to achieve growth and shareholder objectives  **[AMP_3394624_3]** .
  3. **Investment in Growth Areas**: Continue to invest in growth areas, particularly in Wealth Management  **[AMP_3394624_3]** .
  4. **Operating Margins**: Aim to sustain strong operating margins through disciplined expense management and revenue growth  **[AMP_3394624_4]** .
  5. **Net Interest Income**: Expect continued growth as the company invests at over 6% and benefits from short-duration maturities  **[AMP_3394624_7]** .
  6. **General and Administrative (G&A) Expenses**: Focus on managing G&A expenses with process changes and efficiencies while investing for growth  **[AMP_3394624_11]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **General and Administrative (G&A) Expenses**: Plan to keep G&A expenses at 2023 levels, with a targeted increase in the mid-single-digit range for the full year 2024  **[AMP_3380391_5]** .
  2. **Capital Return to Shareholders**: Expect to return **80% of operating earnings** to shareholders  **[AMP_3380391_5]** .
  3. **Net Investment Income**: Growth expected to slow compared to the 30% increase seen in Q1, but remain healthy  **[AMP_3380391_9]** .
  4. **Bank Asset Growth**: Bank assets expected to increase, with plans to launch other products to support growth  **[AMP_3380391_16]** .
  5. **Operating Margins**: Aim to sustain strong margins in Wealth Management, which were nearly **30%** in Q1  **[AMP_3380391_2]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024 and FY 2025
- **Guidance**:
  1. **Net Interest Income**: Expected to be higher in 2024 and 2025 than in 2023, with rates close to **6%**  **[AMP_3370959_7]** **[AMP_3370959_9]** .
  2. **Pretax Margin in Wealth Management (AWM)**: Confidence in sustaining a pretax margin north of **30%**  **[AMP_3370959_14]** .
  3. **Expense Management**: Plan to maintain a flat expense base for 2024  **[AMP_3370959_4]** .
  4. **Cash Levels**: Expectation for cash levels to normalize to **4% to 5%** from the current **8% to 9%** of total client assets  **[AMP_3370959_17]** .
  5. **Capital Return**: Payout ratio was **79%** for the year, with a strategy of strong capital return  **[AMP_3370959_15]** .

6a420ce1869f2d3de3f916b32de4d9310ff2272e8ce57b425248f95ff9cd4983

ba5ad1f8c164963291fb94b4a05cfb1fb0217a4cfdcc4b476b35e3f06df43558

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- 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  **[0000820027-24-000015_amp-20231231.htm:13]** .
- 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  **[0000820027-24-000015_amp-20231231.htm:13]** .
- Firms in the asset management industry: Compete globally with Ameriprise's Asset Management segment to acquire and retain managed and administered assets  **[0000820027-24-000015_amp-20231231.htm:13]** .
- Stock and mutual insurance companies: Competitors of Ameriprise's Retirement & Protection Solutions segment in the sale of variable annuity and insurance products  **[0000820027-24-000015_amp-20231231.htm:13]** .

dc178759d6928363518c4daa85ccc24c93d861ecd7239f16eeb4ebe320138a50

United States

Foreign

Total Revenue

5f0650f263f489b2e95d4cc1cc406972b93ab24caec85cbe624854c4aebaf53d

1. **Long-Term Care Block Decision**  
   **Q:** Why not sell the long-term care block despite challenges?  
   **A:** We evaluated selling or reinsuring the LTC block but found that offers didn't add shareholder value. The book is mature, profitable, and has only **$300 million of capital** tied to it.  **[AMP_3403933_16]** **[AMP_3403933_17]** **[AMP_3403933_28]**  Selling would require accepting significant discounts and increase counterparty risk, so we believe retaining it is the right decision now.  **[AMP_3403933_17]** **[AMP_3403933_19]** **[AMP_3403933_28]** 

2. **Capital Return Outlook**  
   **Q:** Will you maintain 80% capital return in 2025?  
   **A:** Yes, we plan to maintain the **80% capital return** next year, supported by our strong capital position and earnings.  **[AMP_3403933_11]** **[AMP_3403933_18]** **[AMP_3403933_23]**  We have flexibility to adjust based on market conditions and opportunities.  **[AMP_3403933_11]** **[AMP_3403933_23]** 

3. **Expense Outlook for 2025**  
   **Q:** What is the expectation for G&A expense growth in 2025?  
   **A:** We expect total company G&A expenses to be **flat** in 2025, excluding severance and cloud investments.  **[AMP_3403933_13]** **[AMP_3403933_20]** **[AMP_3403933_21]**  In Asset Management, margins should remain in the **35% to 39% range** with continued efficiencies.  **[AMP_3403933_10]** 

4. **Bank's Net Interest Income**  
   **Q:** How will the bank's net interest income hold up as rates decline?  
   **A:** Despite expected rate declines, we anticipate net interest income to remain **stable or increase** due to repositioning the book with longer durations and launching new products like bank CDs and HELOCs.  **[AMP_3403933_9]** **[AMP_3403933_22]** **[AMP_3403933_27]**  We're adding assets and earning premiums on floating rates, which should preserve income.  **[AMP_3403933_22]** **[AMP_3403933_27]** 

5. **Advisor Recruitment Costs**  
   **Q:** Do you expect recruiting costs to decrease as rates fall?  
   **A:** Yes, as rates temper, we expect recruiting costs to adjust down.  **[AMP_3403933_14]**  We continue to attract quality advisors with larger books, and believe current elevated costs are temporary.  **[AMP_3403933_14]** **[AMP_3403933_15]** 

6. **Capital Deployment and M&A**  
   **Q:** How will you deploy excess capital, including potential M&A?  
   **A:** With over **$2 billion** in excess capital, we're considering increasing buybacks or pursuing strategic acquisitions that add value.  **[AMP_3403933_23]**  We're investing in the bank and new products while evaluating opportunities.  **[AMP_3403933_23]** 

7. **Integration and Synergies**  
   **Q:** Are you enhancing synergies between divisions?  
   **A:** Yes, we're leveraging our integrated model to provide better client solutions, enhancing asset management capabilities, and developing new products tailored to client needs.  **[AMP_3403933_7]** **[AMP_3403933_19]** **[AMP_3403933_24]**  This approach strengthens returns due to deeper client relationships.  **[AMP_3403933_19]** 

8. **Products for Aging Population**  
   **Q:** How are you addressing accumulation needs for aging clients?  
   **A:** We're developing new products focused on longevity and retirement income, helping clients manage portfolios and drawdown strategies optimally.  **[AMP_3403933_24]**  These initiatives will come to market over the next year.  **[AMP_3403933_24]** 

9. **Advisor Count Decline**  
   **Q:** Why did advisor count decline, and will growth resume?  
   **A:** The decline was due to adjustments in productivity and team structures; no major issues observed.  **[AMP_3403933_15]**  We expect advisor growth to get back on track in the next quarter.  **[AMP_3403933_15]** 

10. **Distribution Expenses in AWM**  
    **Q:** What's the outlook for distribution expenses in AWM?  
    **A:** Volume increases are embedded in G&A, but we've made adjustments to keep expenses flat while reinvesting in technology and capabilities to maintain margins.  **[AMP_3403933_26]** 

8674f59a66104b00146a0d9d1c74cd586328e7d239c2584217b69f6820e51e31

| Name                        | Position                                                                 | Start Date    | Short Bio                                                                                                                                                                                                                                                                                                                                                     |
|-----------------------------|--------------------------------------------------------------------------|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| James M. Cracchiolo         | Chairman and Chief Executive Officer                                     | Sep 2005      | **James 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  **[0000820027-24-000015_amp-20231231.htm:259]** **[0001140361-24-013509_ny20016516x2_def14a.htm:10]** **[0001140361-24-010803_ny20016516x1_pre14a.htm:10]** .**                                                                                 |
| Walter S. Berman            | Executive Vice President and Chief Financial Officer                     | Sep 2005      | **Walter 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**  **[0000820027-24-000015_amp-20231231.htm:259]** **[0000820027-23-000014_amp-20221231.htm:241]** .**                                                                                                        |
| William F. Truscott         | Chief Executive Officer, Global Asset Management                         | Sep 2012      | **William 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  **[0000820027-24-000015_amp-20231231.htm:262]** **[0000820027-23-000014_amp-20221231.htm:244]** .**                                                                                                                       |
| Joseph E. Sweeney           | President, Advice & Wealth Management, Products and Service Delivery     | Jun 2012      | **Joseph 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  **[0000820027-24-000015_amp-20231231.htm:261]** **[0000820027-23-000014_amp-20221231.htm:243]** .**                                                                              |
| William Davies              | Executive Vice President and Global Chief Investment Officer             | Feb 2022      | **William 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**  **[0000820027-24-000015_amp-20231231.htm:262]** **[0000820027-23-000014_amp-20221231.htm:243]** .**                                                                                                               |
| Gerard Smyth               | Executive Vice President and Chief Information Officer                    | Aug 2020      | **Gerard 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  **[0000820027-24-000015_amp-20231231.htm:261]** .**                                                                          |
| Heather J. Melloh           | Executive Vice President and General Counsel                             | Jun 2022      | **Heather 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  **[0000820027-24-000015_amp-20231231.htm:261]** **[0000820027-23-000014_amp-20221231.htm:242]** .**                                                                                                                  |
| Patrick H. O’Connell        | Executive Vice President, Ameriprise Advisor Group & Ameriprise Financial Institutions Group | Feb 2013      | **Patrick 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.  **[0000820027-24-000015_amp-20231231.htm:261]** .**                                                              |
| Gumer Alvero                | President, Insurance & Annuities                                         | Feb 2022      | **Gumer 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**  **[0000820027-24-000015_amp-20231231.htm:262]** **[0000820027-23-000014_amp-20221231.htm:243]** .**                                                                                             |
| Kelli A. Hunter Petruzillo  | Executive Vice President of Human Resources                              | Sep 2005      | **Kelli 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  **[0000820027-24-000015_amp-20231231.htm:260]** **[0000820027-23-000014_amp-20221231.htm:242]** .**                                                                                                      |
| Dawn M. Brockman            | Senior Vice President and Corporate Controller (Principal Accounting Officer) | Sep 2022      | **Dawn 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**  **[0000820027-24-000015_amp-20231231.htm:260]** **[0000820027-23-000014_amp-20221231.htm:242]** .**                                                                                                       |
| Deirdre D. McGraw           | Executive Vice President-Marketing, Communications and Community Relations | May 2014      | **Deirdre 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  **[0000820027-24-000015_amp-20231231.htm:260]** **[0000820027-23-000014_amp-20221231.htm:242]** .**                                                             |

9921b4f7a4bb0bd4a62839b33094cc7a0e41f3449440caeb8c01adf0fc701916

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | July 24, 2023  **[0000820027-24-000094_amp-20240930.htm:121]**   |
| End Date/Duration        | Through September 30, 2025  **[0000820027-24-000094_amp-20240930.htm:121]**  |
| Total additional amount  | **$3.5 billion**  **[0000820027-24-000094_amp-20240930.htm:121]**  |
| Remaining authorization amount | **$1.5 billion** as of September 30, 2024  **[0000820027-24-000094_amp-20240930.htm:121]**  |
| Details                  | The 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.  **[0000820027-24-000015_amp-20231231.htm:71]** **[0000820027-24-000079_amp-20240630.htm:117]** **[0000820027-23-000105_amp-20230930.htm:139]** **[0000820027-24-000094_amp-20240930.htm:121]** **[0000820027-24-000055_amp-20240331.htm:98]** **[0000820027-23-000082_amp-20230630.htm:134]**  |

1f433de68fe71c8ff04203241b999c75bcb485e6d75742c6a8ac5cb6b962b644

532101320825664dd43a49579fe8f61fbb817e964b87679fbb854229613ccf9e

**Annual guidance for FY 2024:**
- **Return of Capital**: 80%  **[AMP_3403933_11]**  (no change from 80%  **[AMP_3394624_3]** )  
- **Corporate Expenses**: $90 million  **[AMP_3403933_12]**  (no prior guidance)  
- **G&A Expenses**: flattish  **[AMP_3403933_20]**  (no prior guidance)  
- **Asset Management Margins**: 35%–39%  **[AMP_3403933_10]**  (no prior guidance)  
- **Bank Net Interest Income**: expected to be higher  **[AMP_3403933_22]**  (no prior guidance)

**Annual guidance for FY 2025:**
- **Return of Capital**: 80%  **[AMP_3403933_11]**  (no prior guidance)  
- **Corporate Expenses**: $90 million  **[AMP_3403933_12]**  (no prior guidance)  
- **G&A Expenses**: flattish  **[AMP_3403933_20]**  (no prior guidance)  
- **Asset Management Margins**: 35%–39%  **[AMP_3403933_10]**  (no prior guidance)  
- **Bank Net Interest Income**: expected to be higher  **[AMP_3403933_22]**  (no prior guidance)  

d8c25fb6c0e2967a4b25fbfcd6486a534dfe828fba7fd2a408a8439fe526d2b3

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 2010  **[0000820027-24-000015_amp-20231231.htm:132]**    | Present  | Current auditor   |

ac7ff92895054113cce3dcc6b70826c6c4d9cf144c0edaaa53b779a6e2b9a625

3d645b7a2b5888ff1f6c5be0b5670129202a161a347567b6eed840039d70cd09

bf224b75074e01426f97caba56654ca4d9e0957b88e290f816763c39126f09a0

| Year | Amount Due (in millions) | Debt Type       | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|---------------------|-----------------------|------------------------------------------------------------------------------------|
| 2024     | $550                         | Senior Notes        | 3.7                   | 15.3% = ($550 / $3,595) * 100 **[0000820027-24-000094_amp-20240930.htm:3]** **[0000820027-24-000094_amp-20240930.htm:43]**                                     |
| 2025     | $500                         | Senior Notes        | 3.0                   | 13.9% = ($500 / $3,595) * 100 **[0000820027-24-000094_amp-20240930.htm:3]** **[0000820027-24-000094_amp-20240930.htm:43]**                                     |
| 2026     | $500                         | Senior Notes        | 2.9                   | 13.9% = ($500 / $3,595) * 100 **[0000820027-24-000094_amp-20240930.htm:3]** **[0000820027-24-000094_amp-20240930.htm:43]**                                     |
| 2028     | $600                         | Senior Notes        | 5.7                   | 16.7% = ($600 / $3,595) * 100 **[0000820027-24-000094_amp-20240930.htm:3]** **[0000820027-24-000094_amp-20240930.htm:43]**                                     |
| 2032     | $500                         | Senior Notes        | 4.5                   | 13.9% = ($500 / $3,595) * 100 **[0000820027-24-000094_amp-20240930.htm:3]** **[0000820027-24-000094_amp-20240930.htm:43]**                                     |
| 2033     | $750                         | Senior Notes        | 5.2                   | 20.9% = ($750 / $3,595) * 100 **[0000820027-24-000094_amp-20240930.htm:3]** **[0000820027-24-000094_amp-20240930.htm:43]**                                     |
| N/A      | $201                         | Short-Term Borrowing| N/A                   | 5.6% = ($201 / $3,595) * 100 **[0000820027-24-000094_amp-20240930.htm:3]**                                              |

bacb19f7a53f34f63ac7f806d4f88d70572172f8c1950eec3b7be8fc3c3977d3

- **Strong growth in insurance and annuities**, particularly in structured instruments and Variable Universal Life (VUL) products, is expected to add to earnings over time and contribute to free cash flow for share buybacks.  **[AMP_3394624_16]**
- **Expansion in Asset Management in the APAC region**, gaining traction with institutional clients and leveraging core products in equities and fixed income, presents significant growth opportunities.  **[AMP_3394624_22]**
- **Improved Asset Management margins** through leveraging technology and global resources, maintaining stable fee levels, and investing in growth areas like models, Separately Managed Accounts (SMAs), and Exchange-Traded Funds (ETFs), support sustainable profitability.  **[AMP_3394624_15]**

e798f1dd9d7ebef4f6b7bbaede45efc463651d98b3f6c17f840f06bd682a4ece

- **General and Administrative (G&A) expenses are expected to increase by 4-5%** in Advice Wealth Management (AWM) due to growth investments and cloud technology, potentially pressuring margins.  **[AMP_3403933_13]**
- **Enterprise-level expenses are projected to be flat**, excluding severance and cloud investments, indicating limited cost reductions and potential margin pressures.  **[AMP_3403933_13]**
- **Distribution expenses in AWM are increasing due to volume growth and product shifts**, which may impact profitability **despite efforts to maintain good margins**.  **[AMP_3403933_26]**

c7e86857441ce7739f6d789a76cfbbd7ff0cf3afb9f2067de2c724a07d2d00cd

1. **Expense Management**  
   **Q:** Will expense efficiencies reduce G&A growth beyond 2024?  
   **A:** Management expects ongoing expense efficiencies to positively impact G&A growth beyond **2024**. Initiatives taken in **2024** will carry over, and continued process reengineering will contribute to an improved trajectory.  **[AMP_3380391_19]** 

2. **Bank Net Investment Income**  
   **Q:** What are expectations for bank net investment income growth?  
   **A:** The prior **30%** growth won't recur. Each year, about **$3 billion** will be reinvested, potentially adding **100–125 basis points**. Growth will continue but will slow into **2025**, remaining healthy with good profitability.  **[AMP_3380391_9]** 

3. **Capital Deployment and M&A**  
   **Q:** How are you prioritizing excess capital deployment and M&A?  
   **A:** The company continues strong share buybacks and maintains a healthy balance sheet. While not actively seeking acquisitions, management is open to opportunities that make strategic sense but is primarily focused on organic investments and improving operating efficiencies, especially in Asset Management.  **[AMP_3380391_26]** 

4. **Client Cash Balances**  
   **Q:** Are clients pressuring for higher short-term rate benefits?  
   **A:** No significant pressure, as what's left in sweep accounts is mainly transactional liquidity. Clients have already moved significant cash into higher-yielding products like money markets and brokered CDs.  **[AMP_3380391_12]** 

5. **Advisor Recruiting and Loans**  
   **Q:** How are advisor loans and recruiting expenses trending?  
   **A:** Advisor loans grew by **20%** last year and are expected to increase as the firm remains competitive in recruitment. Focus remains on quality advisors who value support to build productive practices.  **[AMP_3380391_20]** 

6. **Institutional Asset Management Mandates**  
   **Q:** What's the outlook for institutional asset management mandates?  
   **A:** While some mandates were delayed or lost in Q1, there's growing interest in fixed income and equities, both domestically and internationally. Management anticipates an uptick in mandates later in the year.  **[AMP_3380391_25]** 

7. **Long-Term Care Risk Transfer**  
   **Q:** Any updates on long-term care risk transfer?  
   **A:** Management continues to evaluate potential risk transfer opportunities, having seen bid spreads narrow. They are assessing trade-offs but believe the business is performing well with stable income generation.  **[AMP_3380391_16]** 

8. **Financial Institution Partnerships**  
   **Q:** Will the pace of financial institution partnerships increase?  
   **A:** The partnership with Comerica has been successful, and there's a good pipeline for additional deals. The company is bringing in new partnerships and sees opportunities due to its strong value proposition.  **[AMP_3380391_23]** 

9. **Lending Solutions Expansion**  
   **Q:** What's the update on lending solutions offerings?  
   **A:** The firm is expanding offerings, including bank CDs, base checking capabilities, new mortgage options, and fixed pledge products. There's an opportunity to further penetrate the pledge lending market.  **[AMP_3380391_22]** 

10. **Share Repurchases and Payout Ratio**  
    **Q:** Why not increase the payout ratio above 80%?  
    **A:** Although there's capacity to increase the payout ratio, management believes **80%** is appropriate. They prefer to be opportunistic and evaluate situations as they arise, balancing capital returns with investments for growth.   

a1315bd26528cd2f01745892d76e59a46aa40f09c4730da66806d1bd68eb4101

- **Expected Slowdown in Bank Net Investment Income Growth:** The company anticipates that the **30% increase in bank net investment income** will **not continue**, with growth expected to **slow as we get into 2025**, potentially impacting profitability.  **[AMP_3380391_9]**
- **Rising Expenses and Margin Pressures in Wealth Management:** The **ratio of distribution expenses to revenues hit an all-time high** in the quarter, and **G&A expenses increased by 7%**, exceeding the mid-single-digit growth target. This may indicate **increasing cost pressures** that could affect future margins.  **[AMP_3380391_20]**
- **Focus on Cost Savings May Indicate Revenue Pressures:** Management's emphasis on achieving further efficiencies and cost savings, particularly in the Asset Management segment, suggests there may be **underlying revenue pressures** impacting the business.  **[AMP_3380391_10]**

970e67f32938eb4ad82733ad5e22a5f22588184e0c80a883c900dd66c319189a

- **Challenges in the Asset Management segment**, as the company reduced Portfolio Managers managing small levels of assets due to economic inefficiencies, indicating pressure in this business area.  **[AMP_3370959_26]**
- **Significant client cash balances remaining idle with limited redeployment**, implying clients are hesitant to invest and potentially affecting fee revenue from assets under management.  **[AMP_3370959_11]** **[AMP_3370959_24]**
- **Potentially reduced capital returns to shareholders**, with the company returning **80% of free cash flow in 2023**, down from 90%, and suggesting it may maintain this level in 2024, indicating less capital return to shareholders.  **[AMP_3370959_21]**

30eb102e7743d0592401a60cc3393f412369e33ca149ce3868343f359ffb5f14

1. **Bank NII Growth Outlook**  
   **Q:** Will bank NII continue growing into '25?  
   **A:** Management expects net interest income to be higher in 2024 over 2023 and believes this trend will continue into 2025, though at a slower pace. The driver is investing over **6%** yields, and as short-duration maturities occur, it provides momentum. They are adding investments but being measured.  **[AMP_3394624_7]** 

2. **Cash Sweep Strategy**  
   **Q:** How are you responding to peers' cash sweep changes?  
   **A:** The company operates within regulatory and fiduciary standards and feels comfortable with its cash sweep approach, used for transactional purposes with account balances typically under **$6,000**. Their rates are competitive, and they keep appropriate levels of cash. Management is aware of peer actions but can't comment on them.  **[AMP_3394624_6]** 

3. **Asset Management Margin Outlook**  
   **Q:** Can you sustain margins above long-term targets?  
   **A:** Despite fee pressure, management is maintaining consistent fee levels and adjusting their model and expenses. By leveraging technology and global resources, they offset flow pressure. Unless market conditions change, they believe they can maintain strong margins.  **[AMP_3394624_13]** 

4. **G&A Expense Outlook**  
   **Q:** How will G&A expenses evolve through '25?  
   **A:** Expenses are well managed, with efficiency gains from process changes. Management is confident about expense management for 2024 and plans to continue investing in growth for 2025. They expect expenses to be well-managed but will invest in the business, consistent with prior years.  **[AMP_3394624_11]** 

5. **Insurance Business Growth**  
   **Q:** Is the insurance business more interesting to grow?  
   **A:** There is good growth in insurance and annuities, particularly in structured instruments and VUL products. While initial earnings are offset by upfront distribution expenses, increased volumes will enhance earnings over time. They are achieving very good rates on reinvested investments, improving spreads. The business is expected to be a strong, consistent contributor, generating free cash flow for buybacks.  **[AMP_3394624_16]** 

6. **Asset Management Expenses**  
   **Q:** Is there room to cut Asset Management expenses?  
   **A:** Management believes there is room to continue reducing expenses. They took additional severance charges in Q2 as part of efforts to improve operations, seeking further efficiencies and adjusting resources where needed.  **[AMP_3394624_15]** 

7. **Net New Asset Trends**  
   **Q:** Any updates on net new assets amid competition?  
   **A:** While wrap flows were strong, consolidated flows were weaker due to lapses in certificates and annuities. Growth rates are aligned with the industry, and they are gaining traction. A slight slowdown in Q2 was seen, but they don't view themselves as outliers.  **[AMP_3394624_13]** 

8. **Advisor Recruiting Slowdown**  
   **Q:** Why has experienced advisor recruiting slowed?  
   **A:** There was a slowdown in experienced advisor recruiting in Q2, possibly because people are staying put due to market conditions and seasonality. However, the pipeline is improving, and they expect recruiting to pick up moving forward.  **[AMP_3394624_8]** 

9. **Pledge Loan Growth**  
   **Q:** Are you seeing a pickup in pledge loan growth?  
   **A:** The company saw a nice increase in pledge loans this quarter. They plan to launch another credit product popular in the industry in the next quarter. They've also seen increases from offering direct CDs and savings programs, attracting external client cash.  **[AMP_3394624_12]** 

10. **RPS Earnings vs. NII Growth**  
    **Q:** Why isn't NII growth boosting RPS earnings more?  
    **A:** Management doesn't see standout issues affecting RPS earnings despite higher net interest income. Disability and insurance claims are within expectations. They will review and provide further details on the components impacting earnings.  **[AMP_3394624_17]** 

2fad912dc3d8e15e8c35b9a6a821eb8a1ade651506c89bb0082909faa81e5e99

- **Ameriprise is developing new product initiatives and solutions** focused on longevity and retirement income, helping clients with optimal drawdown strategies. These investments are expected to come to market over the next year, addressing the accumulation needs of an aging population.  **[AMP_3403933_24]**
- **The company's integrated business model creates significant synergies** across Asset Management, Wealth Management, and Insurance segments, leading to strong returns and efficient management of client assets. This complementary approach leverages capabilities and provides clients with good solutions at competitive prices.  **[AMP_3403933_19]**
- **Effective investment in technology and innovation**, including AI, analytics, and cloud transition, is enabling Ameriprise to maintain good margins while reinvesting in solution sets and capabilities. Disciplined expense management supports growth in Wealth Management with G&A expenses expected to remain flat at the enterprise level.  **[AMP_3403933_26]** **[AMP_3403933_13]**

050d26f6b9dc542a413d1b25a70b9590dae2a24c221e80fdbb4d2f8fd90a9556

- **Despite increased Net Investment Income, the Retirement & Protection Solutions (RPS) segment's earnings have not increased proportionally, raising concerns about underlying profitability.**  **[AMP_3394624_18]**
- **There has been a slowdown in recruiting experienced advisors, which may impact future growth in the Wealth Management business.**  **[AMP_3394624_8]** **[AMP_3394624_14]**
- **The Asset Management segment is facing challenges, including outflows and additional severance costs due to reengineering initiatives, indicating potential difficulties in maintaining margins.**  **[AMP_3394624_15]**

7c9507f241213f5756ad017e639309121828789468f7cdaf18ba1daeb1087245

1. **Net Interest Income Outlook**  
   **Q:** Can you provide guidance on net interest income expectations for 2024 and 2025?  
   **A:** Management expects net interest income in both 2024 and 2025 to be **higher than in 2023** due to reinvestments at rates close to **6%** and maturities of **$3 billion** in both years  **[AMP_3370959_7]** ,  **[AMP_3370959_9]** ,.  **[AMP_3370959_32]** 

2. **Asset Management Expense Reductions**  
   **Q:** How are expense reductions in Asset Management impacting the business and flows?  
   **A:** The company proactively evaluated expenses, resulting in the reduction of **12 portfolio managers** and closure of certain funds, impacting about **$2 billion** in assets  **[AMP_3370959_16]** ,  **[AMP_3370959_19]** ,.  **[AMP_3370959_26]**  Management believes these actions improve efficiency without significant negative commercial impacts  **[AMP_3370959_16]** ,.  **[AMP_3370959_19]** 

3. **Cash Balances Redeployment**  
   **Q:** What opportunities exist to redeploy substantial cash balances on the sidelines?  
   **A:** Clients hold over **$82 billion** in cash, about **8–9%** of total client assets, nearly double the usual amount  **[AMP_3370959_17]** ,  **[AMP_3370959_11]** ,.  **[AMP_3370959_24]**  As rates normalize, these balances could reduce to **4–5%**, offering opportunities for redeployment into higher-margin products like wrap accounts.  **[AMP_3370959_17]** 

4. **AWM Margin Sustainability**  
   **Q:** Can you sustain over 30% pretax margins in Asset & Wealth Management despite potential rate cuts?  
   **A:** Management is confident in sustaining margins above **30%** in AWM, citing expected higher NII in 2024 and effective expense management  **[AMP_3370959_14]** ,.  **[AMP_3370959_13]**  Variables like market conditions could impact margins, but they feel reasonably confident.  **[AMP_3370959_14]** 

5. **Capital Return and Payout Ratio**  
   **Q:** How should we think about the capital return trajectory and payout ratio going forward?  
   **A:** The payout ratio was **79%** for the year  **[AMP_3370959_15]** ,.  **[AMP_3370959_21]**  Management has strong capital return capacity and intends to continue at similar levels, adjusting opportunistically  **[AMP_3370959_15]** ,.  **[AMP_3370959_21]** 

6. **Potential Reinsurance Transaction**  
   **Q:** Any updates on potential reinsurance transactions in Retirement & Protection Solutions?  
   **A:** Management sees opportunities due to recent industry developments and believes the bid-ask spread is aligning, making a transaction more feasible  **[AMP_3370959_23]** ,.  **[AMP_3370959_27]** 

7. **Bank Growth Expectations**  
   **Q:** What are the expectations for growing the bank's assets in 2024?  
   **A:** The bank plans to increase assets at a slower pace, being more measured after a substantial shift, and will evaluate sweep balances to support growth.  **[AMP_3370959_10]** 

8. **Expense Initiatives Beyond Asset Management**  
   **Q:** Are there expense management initiatives outside of Asset Management, and what's the timeline?  
   **A:** Actions are already in place with benefits expected in 2024, aiming for flat expenses despite substantial investments; management has high confidence in execution.  **[AMP_3370959_22]** 

9. **Technology Investments for Advisors**  
   **Q:** What technology initiatives are in place to differentiate the Ameriprise platform?  
   **A:** The company offers integrated platforms including CRM, e-meeting capabilities, AI tools, and mobile/web functionalities, enhancing advisor efficiency and client engagement.  **[AMP_3370959_29]** 

10. **New Money Yields on Cash**  
    **Q:** What are the new money yields on the $3 billion rolling over, and what maturities are being invested in?  
    **A:** New investments are made at yields just under **6%**, with maturities around **3.5 years**.  **[AMP_3370959_30]** 

11. **Comerica Cash Balances**  
    **Q:** Why is Comerica Bank cash high as a percentage of assets, and will advisors redeploy it?  
    **A:** The high percentage is recognized, and there's an opportunity to reduce it as advisors guide clients to redeploy funds over the next **six months**  **[AMP_3370959_31]** ,.  **[AMP_3370959_8]** 

12. **NII Expectations Clarification**  
    **Q:** Is higher NII expected for all cash economics both on and off-balance sheet?  
    **A:** The earlier expectation of higher NII referred specifically to the bank; it's the bank's NII that's expected to be higher  **[AMP_3370959_32]** ,.  **[AMP_3370959_33]** 

13. **Cash Trends in January**  
    **Q:** Can you speak to cash trends seen in January and expectations for balances?  
    **A:** Cash levels have stabilized with a slight increase as of two days ago; seasonality effects are being observed  **[AMP_3370959_24]** ,.  **[AMP_3370959_33]** 

14. **Investment Profile in RPS**  
    **Q:** Can you provide an update on the investment profile of the Retirement & Protection Solutions book?  
    **A:** Investments have taken advantage of rate situations and are largely completed; a pickup is expected going forward from intercompany cash.  **[AMP_3370959_25]** 

15. **Expense Allocation Among Segments**  
    **Q:** What happened with the $15 million redeployment out of corporate into segments?  
    **A:** Adjustments were made to intercompany crediting rates to reflect current conditions, impacting net interest income among segments without affecting the overall company.  **[AMP_3370959_21]** 

16. **Affiliation Options and RIA Growth**  
    **Q:** How is the company approaching growth in the RIA channel?  
    **A:** Management is focused on developing distribution platforms and capabilities to engage the RIA channel, recognizing its growth.  **[AMP_3370959_28]** 

17. **Balancing Expense Cuts and Flows**  
    **Q:** Are expense reductions causing outflows, and how is this balanced?  
    **A:** Some outflows occurred due to proactive decisions to close or merge funds with low payback; management believes these actions are manageable and improve efficiency.  **[AMP_3370959_16]** 

18. **Growth Areas in Asset Management**  
    **Q:** Were growth areas identified during the Asset Management review?  
    **A:** Yes, opportunities were identified, particularly in fixed income and credit, where there's potential for greater market share.  **[AMP_3370959_26]** 

19. **Interest in Third-Party Sidecars**  
    **Q:** Is the company interested in risk transfers involving third-party sidecars?  
    **A:** Currently, this is probably not of interest, as such arrangements are typically for growth, and the company already has a large share.  **[AMP_3370959_27]** 

20. **Margins in Asset Management**  
    **Q:** Are you managing to historical margin targets in Asset Management?  
    **A:** Management is comfortable with current margin levels but acknowledges potential for increase depending on market conditions and expense control.  **[AMP_3370959_13]** 

21. **Cash Level Stabilization**  
    **Q:** What's the status of cash levels year-to-date?  
    **A:** Cash levels in sweep accounts have stabilized with a slight increase through two days ago; seasonal effects are being considered.  **[AMP_3370959_24]** 

22. **Advisors' Client Cash Holdings**  
    **Q:** Is there a reason clients' cash might not come to Ameriprise?  
    **A:** The cash is already at Ameriprise, held in money markets and brokerage CDs; over time, some may move into bank products being developed.  **[AMP_3370959_18]** 

23. **Investment in RPS Portfolio**  
    **Q:** Any color on reinvestments in the RPS portfolio and rate sensitivity?  
    **A:** Investments to capitalize on rate situations are complete; future pickup is expected from intercompany cash.  **[AMP_3370959_25]** 

24. **Off-Balance Sheet Yield Compression**  
    **Q:** Why did off-balance sheet broker-dealer yield compress, and when will it normalize?  
    **A:** Compression resulted from taking on **$2.5 billion** from Comerica, which will transition over the next **six months**, leading to rate increases  **[AMP_3370959_8]** ,.  **[AMP_3370959_31]** 

25. **Reallocation Among Segments**  
    **Q:** Can you explain the expense reallocation among segments?  
    **A:** Adjustments to intercompany crediting rates were made to reflect current conditions, affecting net interest income among segments but not the overall company.  **[AMP_3370959_21]** 

26. **Advisor Platform Differentiation**  
    **Q:** What technology initiatives help the platform stand out to advisors?  
    **A:** Integrated CRM, AI capabilities, and state-of-the-art systems enhance advisor efficiency and client engagement, differentiating the platform.  **[AMP_3370959_29]** 

27. **Layoffs and AUM Impact**  
    **Q:** Can you comment on the size of AUM affected by the layoffs of 12 PMs?  
    **A:** The layoffs impacted funds with about **$2 billion** in assets; most were related to strategic decisions on fund efficiencies.  **[AMP_3370959_19]** 

45c823e456897d4882d23b39b8718ca113bee3098b6adf01a1046520078f69c6

- **Ameriprise Financial is achieving high yields on new investments, currently a tad under **6%**, with maturities around **3.5 years**, which could drive strong net interest income growth.**  **[AMP_3370959_30]**
- **The company is proactively managing expenses, implementing actionable expense reduction initiatives, including **$26 million** in severance, with plans to maintain flat expenses in 2024, which should improve margins.**  **[AMP_3370959_22]**
- **Ameriprise is expanding into growth areas by focusing on opportunities in fixed income and credit in Asset Management, and by developing capabilities to capture growth in the **RIA channel**, potentially increasing market share.**  **[AMP_3370959_26]** **[AMP_3370959_28]**

a66ace9637ba3704167687d05833647f00c3663534d7b11160e92233a73d9d81

- **Ameriprise is expanding partnerships in the financial institution channel**, including a successful relationship with Comerica, and has a strong pipeline for future deals, which could drive growth.  **[AMP_3380391_23]**
- **The company expects continued growth in bank net investment income and bank assets**, contributing significantly to profitability, as they reinvest and launch new products.  **[AMP_3380391_9]** **[AMP_3380391_16]**
- **Ameriprise is focusing on organic growth and investing in new product areas** such as active ETFs, international property, and CLOs, while also improving operational efficiencies through technology investments in AI, data analytics, cybersecurity, and technology platforms.  **[AMP_3380391_26]** **[AMP_3380391_10]**

69c8b625b52abeeac644fbb3ad9b544bd1c366f055aee828d860846c9a26ef4d

Ameriprise Financial Inc (AMP)

Financials