07/26/2021
 
Earnings Per Diluted Share   Return on Equity, ex AOCI (1)
  Q2 2021     Q2 2021
GAAP $4.88   GAAP 19.5%
Adjusted Operating $5.27   Adjusted Operating 37.5%
 
Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer
 
“Ameriprise delivered a strong second quarter and a record first half in operating revenue, earnings and EPS, as we continue to build on our momentum. We are delivering an excellent client experience and deepening relationships, which is driving continued growth in the business.
 
“In the quarter, nearly 80 percent of revenue and pretax earnings were driven by our asset-light Advice and Wealth Management and Asset Management businesses.
 
“We also announced a number of important strategic actions, including the acquisition of BMO’s EMEA asset management business and a significant reinsurance transaction. Together, these moves complement our organic growth while also adding key capabilities and generating shareholder value.”
 
 
  • Second quarter adjusted operating earnings per diluted share was $5.27. Adjusted operating EPS increased 39 percent from the prior year excluding a negative prior year period tax impact of $1.14 per diluted share, reflecting strong business growth.
 
  • Second quarter GAAP net income per diluted share was $4.88, which was impacted by market changes that affected the valuation of derivatives. In the prior year period, results were impacted by changes in the company’s credit spread and the valuation of derivatives used to hedge the company’s variable annuity living benefit guarantees.
 
  • Adjusted operating net revenue was $3.4 billion, a 22 percent increase from strong organic growth.
 
  • General and administrative expenses were well managed in light of business growth, up 6 percent.
 
  • Assets under management and administration were up 28 percent to $1.2 trillion, a record high from strong client flows in Wealth and Asset Management, as well as market appreciation.
 
  • The company continues to generate strong organic growth, with over $16 billion of client net inflows from Advice & Wealth Management and Asset Management.
 
  • Investment performance at Columbia Threadneedle Investments remains excellent with 110 funds with 4- and 5-star Morningstar ratings.
 
  • The company returned $585 million of capital to shareholders in the quarter, which was 92 percent of adjusted operating earnings.
 
  • During the quarter, the company made substantial progress in expanding its growth businesses and reducing its risk profile.
 
  • On June 29, 2021, Ameriprise announced that its insurance subsidiaries entered into an agreement to reinsure approximately $8.0 billion of fixed annuities, which will free up approximately $700 million of capital. In July, the RiverSource Life Insurance Company transaction closed.
 
  • Ameriprise is on track to close its acquisition of BMO’s EMEA Asset Management business in the fourth quarter of 2021. The acquisition expands key capabilities in attractive and growing market segments where BMO EMEA Asset Management has leading positions.
 
The full press release is available for download below. Earnings materials are also available on the Investor Relations site at ir.ameriprise.com.