10-QPeriod: Q2 FY2011

AMERIPRISE FINANCIAL INC Quarterly Report for Q2 Ended Jun 30, 2011

Filed August 9, 2011For Securities:AMP

Summary

Ameriprise Financial, Inc. reported solid financial results for the second quarter of 2011, demonstrating growth across key segments. Total revenues increased by 7% year-over-year to $2.6 billion, with net income attributable to Ameriprise Financial rising by 19% to $309 million. This growth was largely driven by a strong performance in the Advice & Wealth Management and Asset Management segments, supported by higher asset values due to market appreciation and net inflows. The company also repurchased a significant amount of its common stock, indicating confidence in its financial position and commitment to returning value to shareholders. The company is also progressing with its strategic decision to sell Securities America Financial Corporation, classifying it as discontinued operations. Despite a decrease in net investment income due to lower invested assets, the company's overall revenue growth and effective expense management, particularly in the Annuities and Protection segments, contributed to improved profitability. The company's capital position remains robust, with ample liquidity to meet operational needs and further investment opportunities.

Financial Highlights

34 data points
Beta

Revenue

$2.63B

Net Income

$315.00M

12.0% Net Margin

EPS (Diluted)

$1.25

Total Assets

$135.14B

Cash & Equivalents

$2.55B

Free Cash Flow

$643.00M

Financial Statements
Beta
Revenue$2.63B
Operating Expenses$2.21B
Operating Income$631.00M
Net Income$315.00M
EPS (Basic)$1.28
EPS (Diluted)$1.25
Shares Outstanding (Basic)245.50M
Shares Outstanding (Diluted)251.00M

Key Highlights

  • 1Total revenues increased 7% to $2.6 billion in Q2 2011 compared to Q2 2010.
  • 2Net income attributable to Ameriprise Financial grew 19% to $309 million in Q2 2011.
  • 3Advice & Wealth Management segment pretax income increased 26% driven by improved advisor productivity and higher equity markets.
  • 4Asset Management segment pretax income more than doubled, driven by strong asset growth and expense synergies post-acquisition.
  • 5The company repurchased $795 million of common stock in the first six months of 2011, indicating a commitment to shareholder returns.
  • 6Securities America Financial Corporation results were presented as discontinued operations, indicating a strategic divestiture.
  • 7Total Assets Under Management and Administration (AUM & AUA) increased 17% to $670.2 billion as of June 30, 2011.

Frequently Asked Questions

Revenue growth was primarily driven by an increase in asset-based fees in the Advice & Wealth Management and Asset Management segments, stemming from market appreciation and net inflows, as well as the full quarter impact of the Columbia Management Acquisition.

Ameriprise Financial continued its share repurchase program, buying back 12.5 million shares for $795 million in the first six months of 2011, demonstrating a commitment to returning capital to shareholders and a belief in the company's valuation.

The company has decided to sell Securities America Financial Corporation, and its results have been presented as discontinued operations for all periods presented. The related assets and liabilities are classified as held for sale, indicating the company is actively seeking a buyer.

Net investment income decreased by 24% year-over-year in the second quarter of 2011. This was primarily due to lower invested assets resulting from net outflows in certificates and lower investments in annuity general account assets, coupled with lower interest crediting rates.