Summary
Ameriprise Financial, Inc. (AMP) reported robust performance in its 2017 Form 10-K, highlighting significant growth in assets under management and administration (AUM/AUA), which reached $897 billion by year-end. The company's strategic focus on its core segments, Advice & Wealth Management and Asset Management, continues to drive results, with the Advice & Wealth Management segment experiencing particularly strong growth in wrap account assets, fueled by net inflows and market appreciation. The company demonstrated an increase in pretax income driven by positive market movements, favorable client activity, and effective management of expenses across its diversified business lines, including Annuities and Protection. Despite ongoing market volatility and a dynamic regulatory environment, Ameriprise Financial maintained a strong financial position and returned capital to shareholders through dividends and share repurchposes, underscoring its commitment to enhancing shareholder value.
Financial Highlights
39 data points| Revenue | $12.18B |
| Operating Expenses | $9.92B |
| Operating Income | $1.48B |
| Net Income | $1.48B |
| EPS (Basic) | $9.60 |
| EPS (Diluted) | $9.44 |
| Shares Outstanding (Basic) | 154.10M |
| Shares Outstanding (Diluted) | 156.70M |
Key Highlights
- 1Total assets under management and administration (AUM/AUA) grew by 14% to $897 billion as of December 31, 2017, up from $787.4 billion at the end of 2016, indicating strong client asset growth.
- 2The Advice & Wealth Management segment saw a significant increase in operating earnings, up 28% year-over-year, driven by a 19% rise in average advisory wrap account assets, reflecting strong client retention and acquisition.
- 3Asset Management segment operating earnings increased by 19%, primarily due to market appreciation, improved revenue from CLO unwinds, and higher performance fees, demonstrating effective investment management.
- 4Annuities segment operating earnings more than doubled, increasing by 116% to $710 million, primarily driven by the positive impact of unlocking, equity market appreciation, and favorable market performance on deferred acquisition costs and reserves.
- 5The company repurchased approximately 9.9 million shares of common stock for $1.3 billion during 2017, reflecting a commitment to returning capital to shareholders and managing its capital structure effectively.
- 6Total net revenues increased by 3% to $12.0 billion in 2017, supported by growth in management and financial advice fees, partially offset by decreases in net investment income and premiums.
- 7The company reported diluted earnings per share of $9.44 for 2017, an increase from $7.81 in 2016, indicating improved profitability.