Ameriprise Financial Reports Third Quarter 2019 Results
|Earnings ($M)||Earnings Per Diluted Share||Return on Equity, ex. AOCI|
|Adjusted Operating||$554||Adjusted Operating||$4.12||Adjusted Operating||37.7%|
|Adjusted Operating Ex. Unlocking (1)||$570||Adjusted Operating Ex. Unlocking (1)||$4.24||Adjusted Operating Ex. Unlocking (1)||38.0%|
Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer
“Ameriprise delivered an excellent quarter. Advice & Wealth Management is leading our growth with solid contributions from asset management and our insurance businesses.
“Our value proposition continues to distinguish Ameriprise. Client activity was strong with good growth in assets and net inflows into investment advisory.
“Our capital strength is a clear differentiator. We remain focused on generating significant free cash flow that we invest for growth and return to shareholders at attractive levels. In the quarter, we returned nearly 120 percent of our adjusted operating earnings to shareholders.
“And with the successful completion of the sale of Ameriprise Auto and Home, we further strengthened our capital flexibility as we execute our plans.”
- Adjusted operating earnings per diluted share increased 14 percent to $4.12 and adjusted operating return on equity increased 730 basis points to 37.7 percent. Excluding the impact of unlocking, adjusted operating earnings per diluted share increased 8 percent to $4.24.
- Ameriprise assets under management and administration were
$921 billion, with Advice & Wealth Management total client assets
of $612 billion – both represented record highs.
- Wrap net inflows were $4.1 billion. Wrap assets grew 9 percent
to $298 billion and represented 49 percent of total client assets.
- Nearly 80 percent of Ameriprise adjusted operating net revenues
were driven through Advice & Wealth Management.
- Ameriprise delivered a strong pretax adjusted operating margin of 19.8 percent, driven by a 23.5 percent margin in Advice & Wealth Management and a 38.3 percent net adjusted margin in Asset Management.
- In the quarter, the company completed its annual unlocking, which resulted in a $20 million pretax operating charge, including $118 million related to a change in interest rate assumptions.
- Ameriprise’s excess capital was $1.8 billion(2) after returning $676 million to shareholders, which represented approximately 120 percent of adjusted operating earnings excluding unlocking.
- In the quarter, Auto & Home had $33 million of catastrophe losses, up from $16 million in the prior year. On October 1, Ameriprise closed on the sale of its Auto & Home business to American Family Insurance, with net cash proceeds of $1.035 billion, which added over $0.7 billion to excess capital in the fourth quarter.
(1) 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.
(2) Does not include increase in excess capital from the sale of Auto & Home on October 1, 2019.
The full press release is available for download below. Earnings materials are also available on the Investor Relations site at ir.ameriprise.com.