Early Access

10-QPeriod: Q3 FY2011

AMERIPRISE FINANCIAL INC Quarterly Report for Q3 Ended Sep 30, 2011

Filed November 7, 2011For Securities:AMP

Summary

For the third quarter of 2011, Ameriprise Financial, Inc. reported a net income attributable to Ameriprise Financial of $273 million, or $1.13 per diluted share, a decrease compared to the prior year period. The company experienced growth in its Advice & Wealth Management segment, with increased net revenues driven by higher assets under management and client activity. The Asset Management segment saw a decrease in managed assets due to net outflows and market depreciation, impacting revenue and pretax income. The Annuities segment's pretax income declined significantly due to the impact of updating valuation assumptions and models, as well as market impacts on deferred acquisition costs (DAC) and deferred sales inducement costs (DSIC). The Protection segment's performance was stable, with slight decreases in pretax income. Overall, the company navigated a challenging market environment, with key segments showing mixed results, influenced by market volatility and the ongoing integration of the Columbia Management acquisition.

Financial Highlights

35 data points
Beta

Revenue

$2.47B

Net Income

$324.00M

0.1% Net Margin

EPS (Diluted)

$1.34

Total Assets

$130.38B

Cash & Equivalents

$2.69B

Free Cash Flow

$793.00M

Financial Statements
Beta
Revenue$2.47B
Operating Expenses$2.13B
Operating Income$953.00M
Net Income$324.00M
EPS (Basic)$1.36
EPS (Diluted)$1.34
Shares Outstanding (Basic)238.00M
Shares Outstanding (Diluted)242.00M

Key Highlights

  • 1Net income attributable to Ameriprise Financial decreased to $273 million ($1.13 per diluted share) in Q3 2011 from $344 million ($1.32 per diluted share) in Q3 2010.
  • 2Total net revenues increased by 5% to $2.5 billion in Q3 2011 compared to $2.3 billion in Q3 2010.
  • 3Advice & Wealth Management segment pretax income increased by 30% to $114 million due to improved advisor productivity and new client flows.
  • 4Asset Management segment pretax income decreased by 7% to $97 million, impacted by net outflows and market depreciation.
  • 5Annuities segment pretax income decreased by 48% to $136 million, primarily due to updated valuation assumptions and market impacts on DAC/DSIC amortization.
  • 6The company sold Securities America Financial Corporation for $150 million, with the transaction closing on November 4, 2011.
  • 7Total Assets Under Management and Administration decreased by 4% to $599.9 billion as of September 30, 2011.

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