01—Abstract
Summary
Summary of the 10-K filed February 25, 2016. Cited figures are marked; the original filing is the authoritative source.
Ameriprise Financial, Inc. (AMP) demonstrated resilience in 2015, reporting net income attributable to Ameriprise Financial of $1.56 billiona and diluted earnings per share of $8.48.
Despite a slight decrease in total net revenues compared to the previous year, the company saw growth in its Advice & Wealth Management segment, driven by increased wrap account assets and effective expense management. The Asset Management segment experienced a decline in managed assets, primarily due to net outflows and foreign currency translation impacts, which affected its operating earnings.
The Annuities segment showed modest growth in operating earnings, while the Protection segment's operating earnings decreased, largely due to higher claims and provisions for estimated losses in its auto and home insurance business. The company also continued its commitment to shareholder returns through significant share repurchases and dividend payments, underscoring a focus on delivering shareholder value.
02—Key points
Key Highlights
- Ameriprise Financial reported net income attributable to Ameriprise Financial of $1.56 billion in 2015, with diluted EPS of $8.48.
- Total net revenues were $12.17 billion, a slight decrease from $12.27 billion in 2014, reflecting varied performance across segments.
- The Advice & Wealth Management segment saw strong growth, with pretax operating earnings increasing by 8% to $859 million, driven by higher wrap account assets.
- The Asset Management segment's pretax operating earnings decreased by 3% to $761 million due to net outflows and foreign currency impacts, despite market appreciation.
- The Annuities segment's pretax operating earnings increased by 3% to $650 million, benefiting from unlocking impacts.
- The Protection segment's pretax operating earnings decreased by 26% to $183 million, primarily due to higher claims and provisions in auto and home insurance.
- The company repurchased $1.74 billion of common stock in 2015, continuing its capital return strategy.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2015filed February 25, 2016Financial Statements
FY2015 against FY2014
| Line item | FY2015FY2014 | Change |
|---|---|---|
| Revenue | $12.20B$12.30B | −0.8% |
| Operating Expenses | $10.03B$9.72B | +3.2% |
| Operating Income | $1.69B$1.62B | +4.1% |
| Net Income | $1.56B$1.62B | −3.5% |
| EPS (Basic) | $8.60$8.45 | +1.8% |
| EPS (Diluted) | $8.48$8.30 | +2.2% |
| Shares Outstanding (Basic) | 181.70M191.60M | −5.2% |
| Shares Outstanding (Diluted) | 184.20M195.00M | −5.5% |
05—Questions
Frequently Asked Questions
What was Ameriprise Financial's overall financial performance in 2015?
In 2015, Ameriprise Financial reported a net income attributable to Ameriprise Financial of $1.56 billion, or $8.48 per diluted share. Total net revenues were $12.17 billion, showing a slight decrease from 2014, impacted by varied segment performance, with the Advice & Wealth Management segment showing strength while Asset Management faced headwinds.
How did the company's different business segments perform in 2015?
The Advice & Wealth Management segment performed well, with pretax operating earnings up 8% driven by asset growth. The Asset Management segment saw a 3% decline in pretax operating earnings due to outflows and currency effects. The Annuities segment experienced a 3% increase in earnings, benefiting from assumption updates, while the Protection segment's earnings fell 26% due to increased insurance claims and provisions.
What is the company's strategy regarding capital return to shareholders?
Ameriprise Financial demonstrated a commitment to shareholder returns in 2015 by repurchasing approximately $1.74 billion of its common stock. Additionally, the company paid regular quarterly dividends throughout the year, indicating a continued focus on returning capital to its shareholders.
06—Continue