01—Abstract
Summary
Summary of the 10-K filed February 27, 2019. Cited figures are marked; the original filing is the authoritative source.
Ameriprise Financial, Inc. (AMP) reported strong financial performance for the fiscal year ending December 31, 2018.
The company demonstrated a significant increase in pretax income, driven by growth in its Advice & Wealth Management segment and improved market conditions. Total net revenues saw a healthy increase, supported by higher management and financial advice fees, as well as distribution fees, reflecting growth in assets under management and administration. The company's strategy continues to focus on its core capabilities in wealth management and asset management, with a strategic shift towards lower capital, fee-based businesses.
This diversification, combined with a robust advisor network and a client-centric approach through its 'Confident Retirement' strategy, positions Ameriprise for continued success. The company also actively manages its capital through share repurchases and dividend payments, returning value to shareholders while investing in future growth initiatives.
02—Key points
Key Highlights
- Total net revenues increased by 6% to $12.835 billion for the year ended December 31, 2018.
- Pretax income increased by 12% to $2.484 billion for the year ended December 31, 2018.
- Assets under management and administration (AUM and AUA) totaled $822.7 billion as of December 31, 2018.
- The Advice & Wealth Management segment saw a 19% increase in adjusted operating earnings, driven by net inflows and market appreciation.
- Ameriprise Financial returned $2.7 billion in cash dividends or return of capital from its subsidiaries to the parent holding company in 2018.
- The company repurchased 11.3 million shares of common stock for approximately $1.6 billion in 2018.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2018filed February 27, 2019Financial Statements
FY2018 against FY2017
| Line item | FY2018FY2017 | Change |
|---|---|---|
| Revenue | $12.92B$12.18B | +6.1% |
| Operating Expenses | $10.35B$9.92B | +4.4% |
| Net Income | $2.10B$1.48B | +41.8% |
| EPS (Basic) | $14.41$9.60 | +50.1% |
| EPS (Diluted) | $14.20$9.44 | +50.4% |
| Shares Outstanding (Basic) | 145.60M154.10M | −5.5% |
| Shares Outstanding (Diluted) | 147.70M156.70M | −5.7% |
05—Questions
Frequently Asked Questions
What was Ameriprise Financial's total net revenue for the fiscal year ending December 31, 2018?
For the fiscal year ending December 31, 2018, Ameriprise Financial reported total net revenues of $12.835 billion, an increase of 6% compared to the prior year.
How did Ameriprise Financial's key segments perform in 2018?
The Advice & Wealth Management segment showed strong performance with a 19% increase in adjusted operating earnings, driven by net inflows and market appreciation. The Asset Management segment's adjusted operating earnings decreased slightly by 2%, while the Annuities segment saw a 35% decrease in adjusted operating earnings due to various market and assumption impacts. The Protection segment's adjusted operating earnings increased by 13%.
What is Ameriprise Financial's total AUM and AUA as of December 31, 2018?
As of December 31, 2018, Ameriprise Financial had $822.7 billion in total assets under management and administration (AUM and AUA).
What was the company's strategy regarding capital return to shareholders in 2018?
In 2018, Ameriprise Financial paid regular quarterly dividends totaling $516 million and repurchased 11.3 million shares of its common stock for approximately $1.6 billion. The company also returned $2.7 billion in cash dividends or return of capital from its subsidiaries to the parent holding company.
06—Continue