01—Abstract
Summary
Summary of the 10-K filed February 25, 2022. Cited figures are marked; the original filing is the authoritative source.
Ameriprise Financial, Inc. (AMP) reported robust financial performance for the fiscal year ended December 31, 2021.
The company experienced significant growth across its key segments, particularly in Advice & Wealth Management and Asset Management, driven by strong net inflows, market appreciation, and strategic acquisitions, including the notable purchase of BMO Global Asset Management (EMEA). Total assets under management and administration reached $1.4 trilliona, a 29% increase year-over-year, reflecting successful growth initiatives and positive market conditions. Profitability saw a substantial increase, with net income rising 80% to $2.76 billion, translating to diluted earnings per share of $23.00.
This performance was bolstered by a favorable $521 millionb impact from a block transfer reinsurance transaction and improved market-related assumptions. The company also demonstrated a strong commitment to shareholder returns through consistent dividend payments and a substantial share repurchase program. Looking ahead, Ameriprise is focused on its strategic shift towards lower capital, fee-based businesses and managing evolving regulatory landscapes.
02—Key points
Key Highlights
- Total Assets Under Management and Administration (AUM/AUA) grew by 29% to $1.4 trillion as of December 31, 2021.
- Net income increased by 80% to $2.76 billion, with diluted EPS of $23.00.
- Advice & Wealth Management segment adjusted operating earnings increased by 32% to $1.74 billion, driven by higher wrap account assets and net inflows.
- Asset Management segment adjusted operating earnings surged by 57% to $1.10 billion, fueled by market appreciation, net inflows, and the acquisition of BMO Global Asset Management (EMEA).
- Retirement & Protection Solutions segment adjusted operating earnings grew by 53% to $735 million, benefiting from shifts to lower-risk offerings and improved market assumptions.
- The company repurchased $2.0 billion of common stock during 2021 and announced an additional $3.0 billion authorization.
- Ameriprise Bank, FSB continued to grow, with $11.4 billion in cash sweep balances and $468 million in pledged asset lines of credit.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 25, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $13.39B$11.96B | +12.0% |
| Operating Expenses | $9.19B$10.07B | −8.7% |
| Net Income | $3.42B$1.53B | +122.8% |
| EPS (Basic) | $29.13$12.39 | +135.1% |
| EPS (Diluted) | $28.48$12.20 | +133.4% |
| Shares Outstanding (Basic) | 117.30M123.80M | −5.3% |
| Shares Outstanding (Diluted) | 120.00M125.70M | −4.5% |
05—Questions
Frequently Asked Questions
What was Ameriprise Financial's overall financial performance in 2021?
Ameriprise Financial demonstrated strong financial performance in 2021, with net income increasing by 80% to $2.76 billion and diluted earnings per share reaching $23.00. This growth was driven by increases in assets under management and administration, favorable market conditions, successful strategic acquisitions, and improved operational performance across its key segments.
How did the acquisition of BMO Global Asset Management (EMEA) impact Ameriprise?
The acquisition of BMO Global Asset Management (EMEA) on November 8, 2021, was a significant strategic move that added $136 billion in assets under management and expanded Ameriprise's presence in EMEA. This acquisition contributed to a 38% increase in the Asset Management segment's total managed assets and a $59 million increase in revenue, bolstering the company's global capabilities and fee-based business growth.
What is Ameriprise's strategy regarding its product mix, particularly annuities?
Ameriprise is actively shifting its business mix towards lower capital and fee-based businesses with improved risk profiles. In line with this strategy, the company decided to discontinue new sales of substantially all variable annuities with living benefit guarantees at the end of 2021 and plans a full exit by mid-2022. This strategic pivot aims to reduce exposure to products with embedded guarantees and enhance overall profitability and capital efficiency.
How did market conditions affect Ameriprise's financial results?
Favorable market conditions in 2021, particularly higher average equity markets, positively impacted Ameriprise's results. The company's assets under management benefited from market appreciation, which in turn drove higher asset-based fees in its Advice & Wealth Management and Asset Management segments. However, the report also notes that volatility and changes in equity and interest markets, along with ongoing economic disruption from the COVID-19 pandemic, continue to present risks and uncertainties.
06—Continue