Ameriprise Financial Reports Fourth Quarter 2022 Results
Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer:
“Ameriprise delivered excellent results in the quarter with operating EPS up 13 percent, capping off a strong year, with full year operating EPS(4) up 11 percent, reaching a new high of $25.14.
“We achieved record results in 2022 that demonstrate the strength, diversification and capabilities of our business. Wealth Management client flows for the year hit a new high reflecting our proven, advice-based client experience and broad suite of solutions. In addition, we are seeing strong growth across our cash offerings including at the bank – a significant benefit in this rising interest rate environment.
“Our Retirement and Protection Solutions business also benefited from increased spread revenue and had a good quarter. And while our Asset Management business was impacted by the industry-wide pressure from lower markets and volatility, we remained focused on executing our strategic priorities, including the integration of the BMO EMEA business.
“Capital management is a differentiator for Ameriprise. As we grow, we consistently generate significant free cash flow across our business that we reinvest in the business and return to shareholders. In 2022, we returned approximately 85 percent of earnings to shareholders, including devoting $1.9 billion to share repurchases and a double digit increase in our dividend.
“Ameriprise is well-positioned to build on our momentum in 2023.”
The full press release and other earnings materials are available on the Investor Relations site at ir.ameriprise.com.
- Fourth quarter adjusted operating earnings per diluted share was $6.94, up 13 percent from the prior year period driven by strong business performance and capital return to shareholders. Full year adjusted operating earnings per diluted share excluding unlocking increased 11 percent to $25.14.
- Fourth quarter GAAP net income per diluted share was $4.43 compared to $5.96 a year ago, primarily reflecting market impacts on the valuation of derivatives. Full year GAAP net income per diluted share decreased 2 percent to $22.51.
- Pretax adjusted operating earnings reached a new high of $973 million, up 9 percent, from excellent growth in the Wealth Management business. The Advice and Wealth Management margin reached a new record high of 30 percent.
- Adjusted operating net revenues of $3.6 billion declined only 2 percent in the quarter, as excellent growth in Wealth Management largely offset a reduction in Asset Management fees from market depreciation.
- Advice & Wealth Management total client flows were $12.4 billion in the quarter, reaching a record high of $42.5 billion for the year, and Ameriprise Bank and Certificate Company assets grew to $29 billion.
- Investment performance at Columbia Threadneedle Investments remained strong in a volatile market environment with 131 funds with 4- and 5-star Morningstar ratings.
- The company returned $610 million of capital to shareholders in the quarter and $2.4 billion for the full year driven by strong balance sheet fundamentals and significant free cash flow generation.
- For the fourth consecutive year, Ameriprise was recognized by J.D. Power for providing “an outstanding customer service experience” for phone support for advisors.(3)
(1) Return on equity excluding AOCI is calculated on a trailing 12-month basis.
(2) Unlocking impacts reflect the company’s annual review of insurance and annuity valuation assumptions and model changes, and the Long Term Care (LTC) gross premium valuation.
(3) J.D. Power 2022 Certified Customer Service ProgramSM recognition is based on successful completion of an evaluation and exceeding a customer satisfaction benchmark through a survey of recent servicing interactions. For more information, visit http://www.jdpower.com/ccc.
(4) Excluding unlocking.