01—Abstract
Summary
Summary of the 10-K filed February 23, 2023. Cited figures are marked; the original filing is the authoritative source.
Ameriprise Financial, Inc. (AMP) reported strong results in its 2022 10-K filing, driven by its Advice & Wealth Management segment, which saw a 26%a 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 trillionb 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.
02—Key points
Key Highlights
- Total net revenues increased by 6% to $14.27 billion.
- Advice & Wealth Management segment adjusted operating earnings grew by 26% to $2.19 billion, driven by higher interest rates and client inflows.
- Total assets under management and administration decreased by 17% to $1.18 trillion, primarily due to market depreciation.
- The company repurchased $1.9 billion of its common stock during 2022.
- Ameriprise Financial maintained strong capital levels, with RiverSource Life's capital exceeding its company action level by 543% and RiverSource Life of NY by 801%.
- The company is actively managing its business mix, shifting towards lower-capital, fee-based business and discontinuing certain annuity products with living benefit guarantees.
- Employee engagement scores remain high at 85%, indicating a strong corporate culture and effective human capital management.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2022filed February 23, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $14.33B$13.39B | +7.1% |
| Operating Expenses | $10.33B$9.19B | +12.3% |
| Net Income | $3.15B$3.42B | −7.8% |
| EPS (Basic) | $28.29$29.13 | −2.9% |
| EPS (Diluted) | $27.70$28.48 | −2.7% |
| Shares Outstanding (Basic) | 111.30M117.30M | −5.1% |
| Shares Outstanding (Diluted) | 113.70M120.00M | −5.2% |
05—Questions
Frequently Asked Questions
What was Ameriprise Financial's overall financial performance in 2022?
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.
How did the different business segments perform?
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.
What is the company's outlook and strategy moving forward?
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%.
How does Ameriprise Financial manage its market risks?
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.
06—Continue