10-KPeriod: FY2016

AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2016

Filed February 23, 2017For Securities:AMP

Summary

Ameriprise Financial, Inc. (AMP) delivered a mixed financial performance in 2016, as detailed in their 2017 10-K filing. The company saw a decrease in net income attributable to Ameriprise Financial by 16% to $1.56 billion, primarily due to the impact of "unlocking" (changes in valuation assumptions), net outflows in asset management, and a deconsolidation of certain investment entities. Total net revenues also declined by 4% to $11.7 billion, impacted by lower management and financial advice fees, distribution fees, and net investment income. Despite these headwinds, the company highlighted positive trends in its Advice & Wealth Management segment, which saw a 6% increase in operating earnings to $911 million, driven by growth in wrap account assets and higher earnings on brokerage cash. Assets under management and administration reached $787.4 billion, a slight increase from the prior year. Ameriprise Financial also continued its share repurchase program, demonstrating a commitment to returning capital to shareholders.

Financial Highlights

39 data points
Beta

Revenue

$11.84B

Net Income

$1.31B

11.1% Net Margin

EPS (Diluted)

$7.81

Total Assets

$139.82B

Cash & Equivalents

$2.32B

Free Cash Flow

$2.33B

Financial Statements
Beta
Revenue$11.84B
Operating Expenses$10.21B
Operating Income$1.31B
Net Income$1.31B
EPS (Basic)$7.90
EPS (Diluted)$7.81
Shares Outstanding (Basic)166.30M
Shares Outstanding (Diluted)168.20M

Key Highlights

  • 1Net income attributable to Ameriprise Financial decreased by 16% to $1.56 billion in 2016.
  • 2Total net revenues decreased by 4% to $11.7 billion.
  • 3Assets under management and administration grew slightly to $787.4 billion.
  • 4The Advice & Wealth Management segment showed strong operating earnings growth of 6% to $911 million.
  • 5The Asset Management segment experienced a significant 18% decrease in operating earnings to $621 million due to net outflows and other factors.
  • 6The Annuities segment's operating earnings dropped by 49% to $329 million, significantly impacted by "unlocking" and lower investment yields.
  • 7Ameriprise Financial repurchased approximately 17.5 million shares of common stock during 2016, returning capital to shareholders.

Frequently Asked Questions

The primary drivers for the 16% decrease in net income attributable to Ameriprise Financial in 2016 were the impact of 'unlocking' (changes in actuarial and valuation assumptions), net outflows in the asset management business, and the deconsolidation of certain investment entities. These factors led to a 26% decrease in pretax income.

The Advice & Wealth Management segment performed well, with a 6% increase in operating earnings. However, the Asset Management and Annuities segments experienced significant declines in operating earnings, down 18% and 49% respectively. The Protection segment saw a slight decrease in operating earnings, while the Corporate & Other segment reported an increased operating loss.

Ameriprise Financial returned capital to shareholders through dividends and share repurchases. They paid regular quarterly dividends totaling $489 million in 2016 and repurchased approximately 17.5 million shares of common stock for $1.7 billion during the year. The company had $929 million remaining under its share repurchase authorization at the end of 2016.