AMERIPRISE FINANCIAL INC Quarterly Report for Q1 Ended Mar 31, 2012

Summary

Ameriprise Financial, Inc. (AMP) reported steady performance for the first quarter of 2012, with total net revenues increasing slightly by 1% to $2.561 billion compared to the same period in 2011. Net income attributable to Ameriprise Financial was $244 million, a modest increase of 1% from the prior year. The company's Advice & Wealth Management segment showed resilience with a 4% increase in net revenues, driven by growth in assets under management. Asset Management experienced a 4% decline in net revenues, primarily due to a decrease in assets under management. The company continued to navigate a challenging low-interest-rate environment, which impacted net investment income. However, strategic adjustments, including updates to variable annuity models and management of deferred acquisition costs, helped mitigate some of these pressures. The company also maintained a strong liquidity position, with $2.3 billion in cash and cash equivalents at the end of the quarter, and continued its share repurchase program.

Key Highlights

• 1Total net revenues increased 1% to $2.561 billion, with growth in asset-based fees from retail client net inflows and market appreciation contributing positively.
• 2Net income attributable to Ameriprise Financial grew 1% to $244 million, indicating stable profitability despite market conditions.
• 3The Advice & Wealth Management segment demonstrated strength with a 4% increase in net revenues, supported by wrap account net inflows and market appreciation.
• 4Asset Management segment net revenues decreased by 4%, largely due to a decline in assets under management from net outflows.
• 5The company maintained a solid liquidity position with $2.3 billion in cash and cash equivalents.
• 6Ameriprise Financial continued its share repurchase program, buying back 5.4 million shares of common stock in the quarter.

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