01—Abstract
Summary
Summary of the 10-K filed February 24, 2012. Cited figures are marked; the original filing is the authoritative source.
Ameriprise Financial, Inc. (AMP) reported solid results for the fiscal year ending December 31, 2011.
The company demonstrated resilience in a challenging economic environment, growing its net revenues by 7% year-over-year to $10.2 billiona. Net income attributable to Ameriprise Financial increased slightly to $1.08 billion, or $4.37 per diluted share, reflecting a stable operating performance.
The company maintained a strong foundation, with $631 billionb in assets under management and administration, though this represents a slight decrease from the previous year. Ameriprise continues to focus on its core strengths in wealth management and asset management, supported by a robust network of over 9,700 affiliated advisors.
02—Key points
Key Highlights
- Total net revenues increased 7% to $10.2 billion, driven by growth in asset-based fees.
- Net income attributable to Ameriprise Financial was $1.08 billion, a slight increase from the prior year.
- Assets under management and administration stood at $631 billion, a decrease of 3% from 2010, reflecting market conditions and net outflows in asset management.
- The company maintained a strong advisor network, with over 9,700 affiliated advisors, and a client retention rate of 92%.
- Ameriprise Financial completed the sale of Securities America in Q4 2011, allowing a focus on its branded advisor network.
- The company repurchased approximately $1.5 billion of its common stock during 2011, demonstrating a commitment to returning capital to shareholders.
- The company reported an operating return on equity excluding accumulated other comprehensive income of 13.2%.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 24, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $10.24B$9.58B | +6.9% |
| Operating Expenses | $8.74B$8.04B | +8.7% |
| Operating Income | $1.18B$1.01B | +16.1% |
| Net Income | $1.12B$1.10B | +1.7% |
| EPS (Basic) | $4.62$3.84 | +20.3% |
| EPS (Diluted) | $4.53$3.77 | +20.2% |
| Shares Outstanding (Basic) | 241.40M257.40M | −6.2% |
| Shares Outstanding (Diluted) | 246.30M262.30M | −6.1% |
05—Questions
Frequently Asked Questions
What was Ameriprise Financial's overall financial performance in 2011?
Ameriprise Financial reported solid financial performance in 2011, with total net revenues of $10.2 billion, a 7% increase from 2010. Net income attributable to Ameriprise Financial was $1.08 billion, a slight increase from the previous year, reflecting stable operating performance despite economic headwinds.
How did Ameriprise Financial's assets under management and administration change in 2011?
Assets under management and administration decreased by 3% to $631 billion at December 31, 2011, compared to $647.5 billion at December 31, 2010. This decrease was primarily attributed to net outflows in the Asset Management segment and market depreciation, partially offset by net inflows in wrap accounts.
What strategic initiatives did Ameriprise Financial undertake in 2011?
In 2011, Ameriprise Financial focused on strengthening its core businesses by completing the integration of Columbia Management, selling Securities America to concentrate on its branded advisor network, and continuing to invest in its technology platform to enhance advisor productivity and client service. The company also actively repurchased its common stock, returning capital to shareholders.
What are the key business segments of Ameriprise Financial and how did they perform?
Ameriprise Financial operates through five segments: Advice & Wealth Management, Asset Management, Annuities, Protection, and Corporate & Other. The Advice & Wealth Management segment showed strong pretax income growth, driven by increased advisor productivity and client flows. The Asset Management segment benefited from the full year impact of the Columbia Management acquisition, although it faced net outflows. The Annuities segment's pretax income declined due to updated valuation assumptions and market impacts on DAC/DSIC amortization, while the Protection segment's pretax income decreased due to higher claims and administrative expenses.
06—Continue