10-KPeriod: FY2022

AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2022

Filed February 23, 2023For Securities:AMP

Summary

Ameriprise Financial, Inc. (AMP) reported strong results in its 2022 10-K filing, driven by its Advice & Wealth Management segment, which saw a 26% increase in adjusted operating earnings. Despite a challenging market environment, the company maintained a robust financial position, with assets under management and administration totaling $1.2 trillion as of December 31, 2022. The company continues to focus on its strategy of shifting its business mix towards lower-capital, fee-based businesses. The company demonstrated resilience in its financial performance, with total net revenues increasing by 6% to $14.27 billion. While net investment income saw a decline, this was offset by growth in distribution fees and other revenues. Ameriprise Financial also remains committed to shareholder returns, announcing a quarterly dividend and continuing its share repurchase program. The company's diversified business model and strong advisor network position it well for continued growth and stability in the evolving financial services landscape.

Financial Highlights

36 data points
Beta

Revenue

$14.33B

Net Income

$3.15B

22.0% Net Margin

EPS (Diluted)

$27.70

Total Assets

$158.85B

Cash & Equivalents

$8.76B

Free Cash Flow

$4.41B

Financial Statements
Beta
Revenue$14.33B
Operating Expenses$10.33B
Net Income$3.15B
EPS (Basic)$28.29
EPS (Diluted)$27.70
Shares Outstanding (Basic)111.30M
Shares Outstanding (Diluted)113.70M

Key Highlights

  • 1Total net revenues increased by 6% to $14.27 billion.
  • 2Advice & Wealth Management segment adjusted operating earnings grew by 26% to $2.19 billion, driven by higher interest rates and client inflows.
  • 3Total assets under management and administration decreased by 17% to $1.18 trillion, primarily due to market depreciation.
  • 4The company repurchased $1.9 billion of its common stock during 2022.
  • 5Ameriprise Financial maintained strong capital levels, with RiverSource Life's capital exceeding its company action level by 543% and RiverSource Life of NY by 801%.
  • 6The company is actively managing its business mix, shifting towards lower-capital, fee-based business and discontinuing certain annuity products with living benefit guarantees.
  • 7Employee engagement scores remain high at 85%, indicating a strong corporate culture and effective human capital management.

Frequently Asked Questions

Ameriprise Financial reported total net revenues of $14.27 billion, a 6% increase compared to 2021. Pretax income was $3.18 billion, a 5% decrease from the prior year, primarily due to the prior year's block transfer reinsurance transaction and less favorable mean reversion impacts. Net income was $2.56 billion, a 7% decrease from 2021.

The Advice & Wealth Management segment showed significant growth with a 26% increase in adjusted operating earnings, reaching $2.19 billion. The Asset Management segment's adjusted operating earnings decreased by 23% to $844 million, largely due to market depreciation and net outflows. The Retirement & Protection Solutions segment saw a 14% decrease in adjusted operating earnings to $630 million, impacted by market conditions and a shift in product mix. The Corporate & Other segment reported an adjusted operating loss of $275 million.

Ameriprise Financial continues to execute its strategy focused on shifting its business mix towards lower-capital, fee-based businesses. The company is also focusing on optimizing its risk profile by moving away from products with living benefit guarantees. The company aims for adjusted operating earnings per diluted share growth of 12% to 15% and an adjusted operating return on equity excluding AOCI of over 30%.

Ameriprise Financial manages market risks, primarily interest rate and equity price risk, through a combination of hedging strategies, including the use of derivative instruments like options, swaptions, swaps, and futures. These strategies aim to offset the sensitivity of liabilities for guaranteed benefits associated with variable annuities and other products. The company also monitors its investment portfolio and adjusts strategies as needed.