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]

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5098e5ac8ad99b9dc1754d08515c482dafe7060ff20d6b8a6197a192ef8400b9

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]

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2df0d50d0fca13343fe2df95664026edb51bab52cb5a3a763672107342d1b3d4

United States

Foreign

Total Revenue

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599e2d6a912dfd508f76333e9973a8114ca107b4e1e28dee28ee12a5c95e7db1

Management and financial advice fees (USD, millions)

Distribution fees (USD, millions)

Net investment income (USD, millions)

Premiums, policy and contract charges (USD, millions)

Other revenues (USD, millions)

Total revenues (USD, millions)

Banking and deposit interest expense (USD, millions)

Total net revenues (USD, millions)

Distribution expenses (USD, millions)

Interest credited to fixed accounts (USD, millions)

Benefits, claims, losses and settlement expenses (USD, millions)

Remeasurement (gains) losses of future policy benefit reserves (USD, millions)

Change in fair value of market risk benefits (USD, millions)

Amortization of deferred acquisition costs (USD, millions)

Interest and debt expense (USD, millions)

General and administrative expense (USD, millions)

Total expenses (USD, millions)

Pretax income (USD, millions)

Income tax provision (USD, millions)

Net income (USD, millions)

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The Banking and deposit interest expense jumped in Q4 2023 primarily because of **higher average crediting rates** and **increased average balances** on certificates and bank cash deposits, driven by rising interest rate trends during the period.  **[0000820027-24-000015_amp-20231231.htm:91]**  These factors led to a significant increase in the interest expense compared to previous periods.  **[0000820027-24-000015_amp-20231231.htm:91]** **[0000820027-24-000015_amp-20231231.htm:85]** 

Why did Banking and deposit interest expense jump in Q4 2023?

In Q3 2024, **distribution expenses rose by $242 million (19%)** compared to the prior year period. This increase was driven by several factors: **market appreciation**, where higher market values raised compensation tied to assets; **increased transactional activity** due to more client engagements; and **business growth** reflected in strong net flows and expanded client assets.  **[0000820027-24-000094_amp-20240930.htm:85]** **[0000820027-24-000094_amp-20240930.htm:81]** **[AMP_3403933_5]** 

What drove the rise in Distribution expenses in Q3 2024?

The spike in **Benefits, claims, losses and settlement expenses** in **Q4 2023** was primarily driven by a marked shift in the **Structured Variable Annuities (SVA) Embedded Derivatives**, which swung from a **$633 million benefit** in 2022 to a **$1,166 million expense** in 2023 due to unfavorable market movements such as equity fluctuations and changing interest rates. Additionally, **higher sales volumes** in life contingent payout annuities and SVAs, a **$191 million increase** in expenses related to market impacts on variable annuity guaranteed benefits, and a reversal in the unlocking impact for variable annuities with living benefits also contributed to the significant increase.  **[0000820027-24-000015_amp-20231231.htm:88]** **[0000820027-24-000015_amp-20231231.htm:220]** **[0000820027-24-000015_amp-20231231.htm:94]** 

What caused the spike in Benefits, claims, losses and settlement expenses in Q4 2023?

The reversal in Q1 2024 was primarily driven by a significant reduction—a **$507 million decrease** compared to the prior period—stemming from market impacts on variable annuity guaranteed benefits. Specifically, a **$520 million decrease in expense** was noted, which was the result of a combination of factors such as a **$1.3 billion favorable change** in the reserves and an **unfavorable $738 million change** in the associated hedging derivatives. Additionally, shifts in market factors—involving the equity market, interest rates, and volatility—resulted in changes where items that had previously been an expense turned into a benefit, while unhedged items added further to the net expense. These dynamics collectively explain the reversal in the change in fair value of market risk benefits for Q1 2024.  **[0000820027-24-000055_amp-20240331.htm:72]** 

Why did the Change in fair value of market risk benefits reverse in Q1 2024?

The drop in **Net income** for Q4 2023 was driven by several key factors. First, there were **market impacts on the valuation of derivatives and market risk benefits**, which caused the GAAP net income per diluted share to fall from **$5.83** to **$3.57** year-over-year.  **[0000820027-24-000003_q42023er.htm:1]**  Additionally, **non-recurring expenses** such as **$0.28 in regulatory accrual expense**, **$0.14 in severance expense**, and **$0.13 in mark-to-market impacts on share‐based compensation** contributed to the adverse effect on net income, even though the adjusted operating earnings per diluted share showed a slight improvement.  **[0000820027-24-000003_q42023er.htm:1]** **[AMP_3370959_4]**  Finally, although there was strong growth in assets under management and administration to **$1.4 trillion** (up **15%**) driven by **$36 billion in client flows**, the full benefits of market appreciation were not realized due to the **beginning-of-month billing practice**.  **[AMP_3370959_4]** **[AMP_3370959_5]** 

What factors contributed to the drop in Net income in Q4 2023?

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The significant jump in cash in Q3 2024 was primarily driven by **robust net cash provided by operating activities**, which more than offset the **net cash used in financing activities** (including share repurchases, dividend payments, and net outflows from investment certificate maturities). In addition, a small but positive **effect of exchange rate changes** (an increase of **$22 million**) also contributed to the increase in cash balances.  **[0000820027-24-000094_amp-20240930.htm:6]** 

What drove the significant jump in cash in Q3 2024?

The increase in total assets in Q3 2024 was driven by several key factors. Specifically, there was a significant rise in **cash and cash equivalents** (from **$7,477 million** to **$10,575 million**), an increase in **investments** (from **$55,489 million** to **$56,703 million**), a growth in **separate account assets** (from **$77,457 million** to **$81,409 million**), and an increase in **other assets** (from **$11,700 million** to **$14,372 million**).  **[0000820027-24-000094_amp-20240930.htm:3]** 

What factors contributed to the marked increase in total assets in Q3 2024?

The decrease in long-term debt in Q3 2024 was very minor—a reduction of only **$5 million**—and the documents indicate that the debt remained relatively stable with no significant changes or unusual events reported as the explanation for the decrease.  **[0000820027-24-000094_amp-20240930.htm:3]** **[0000820027-25-000003_q42024er.htm:17]** 

What explains the decrease in long-term debt by Q3 2024?

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The large jump in operating cash flow in Q3 2024 was driven by **higher earnings from fee-based business operations**, **net cash inflows in brokerage deposits**, **lower income taxes paid**, and **higher investment income**.  **[0000820027-24-000094_amp-20240930.htm:106]** 

What drove the large jump in operating cash flow in Q3 2024?

The strong increase in net income in Q1 2024 was driven by a combination of factors, including a **favorable equity market environment** that increased revenues and earnings across both the Wealth Management and Asset Management segments.  **[AMP_3380391_5]** **[AMP_3380391_6]** **[AMP_3380391_1]**  Additionally, **net investment income rose by 29% (an increase of $203 million)** due to growth in Ameriprise Bank’s customer deposits and certificate business, along with **rising interest rates** that improved investment portfolio yields.  **[AMP_3380391_5]** **[0000820027-24-000055_amp-20240331.htm:71]**  Furthermore, **improved operating performance** was evident with adjusted operating earnings growing by **10%** and revenues increasing by **11%**, while a **positive market impact of $140 million** on non-traditional long-duration products and effective expense management also contributed to the strong performance.  **[AMP_3380391_1]** **[0000820027-24-000055_amp-20240331.htm:63]** 

What contributed to the strong increase in net income in Q1 2024?

The documents highlight that **deferred income tax was a benefit of $(48) million in Q1 2023** and became an **expense of $227 million in Q1 2024**. However, **the provided documents do not offer specific reasons** for this significant change in the deferred income tax outcome.  **[0000820027-24-000055_amp-20240331.htm:4]** 

Why did the deferred income tax benefit turn into an expense in Q1 2024?

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Ameriprise Financial Inc (AMP)

Financials