How did Ameriprise Financial's net income change in the second quarter of 2015 compared to the previous year?

Net income attributable to Ameriprise Financial increased by 11% to $415 million for the three months ended June 30, 2015, compared to $374 million in the same period of the prior year. This was driven by growth in revenue and improved performance across several segments.

What were the key drivers for the increase in the Advice & Wealth Management segment's operating earnings?

The Advice & Wealth Management segment's pretax operating earnings increased by 13% primarily due to growth in wrap account assets, which was driven by net inflows and market appreciation. Higher advisor compensation reflecting asset growth also contributed to the results.

How did the low interest rate environment affect Ameriprise Financial's performance in this quarter?

The low interest rate environment continued to impact the company, particularly the Annuities segment, leading to lower net investment income and spread compression. While the company benefited from a release of long-term care reserves, the overall impact of low rates on net investment income and product profitability remains a key consideration.

What is the company's approach to managing market risk, particularly with variable annuity guarantees?

Ameriprise Financial employs a comprehensive hedging program to manage market risk associated with variable annuity guarantees. This program aims to match the sensitivity of assets to liabilities using derivatives such as futures, options, and swaps, primarily focusing on equity market level, interest rate level, and volatility. A macro hedge program is also in place to protect against statutory tail scenario risk.

AMP 10-Q Quarterly Report Q2 FY2015 — Revenue, Net Income, EPS

Summary

Ameriprise Financial, Inc. (AMP) reported solid results for the second quarter and first half of 2015, demonstrating resilience in its diversified business segments. Total revenues grew slightly year-over-year, supported by strong performance in management and financial advice fees, as well as premiums. The Advice & Wealth Management segment showed notable growth in operating earnings, driven by an increase in wrap account assets and positive net flows. The Asset Management segment experienced some headwinds from net outflows and foreign currency translation, impacting revenues slightly, though performance fees and expense management provided some offset. Annuities and Protection segments saw mixed results, with Annuities facing challenges from lower net investment income and DAC/DSIC impacts, while Protection benefited from an LTC reserve release despite higher auto and home losses. Overall, the company maintained a strong financial position, with ample liquidity and continued execution of its capital return strategy through share repurchases and dividends. Investors should monitor the impact of the low interest rate environment on net investment income and potential regulatory developments affecting the financial services industry.

Financial Highlights

34 data points

Beta

Revenue

$3.13B

Net Income

$415.00M

0.1% Net Margin

EPS (Diluted)

$2.23

Total Assets

$148.81B

Cash & Equivalents

$2.57B

Free Cash Flow

$619.00M

Financial Statements

Beta

Revenue	$3.13B
Operating Expenses	$2.51B
Operating Income	$808.00M
Net Income	$415.00M
EPS (Basic)	$2.26
EPS (Diluted)	$2.23
Shares Outstanding (Basic)	183.80M
Shares Outstanding (Diluted)	186.40M

Key Highlights

1Total net revenues increased by 2% to $3.13 billion for the three months ended June 30, 2015, compared to the prior year period.
2Net income attributable to Ameriprise Financial increased by 11% to $415 million for the three months ended June 30, 2015, compared to $374 million in the prior year period.
3Diluted earnings per share increased to $2.23 from $1.91 in the prior year period.
4Advice & Wealth Management segment pretax operating earnings increased by 13% to $220 million, driven by growth in wrap account assets and net inflows.
5Asset Management segment's pretax operating earnings decreased slightly by 1% to $197 million, impacted by net outflows and foreign currency translation, partially offset by higher performance fees.
6The company repurchased 3.33 million shares of common stock under its repurchase program during the quarter.
7Cash and cash equivalents remained strong at $2.57 billion as of June 30, 2015.

AMERIPRISE FINANCIAL INC Quarterly Report for Q2 Ended Jun 30, 2015

Summary

Financial Highlights

Key Highlights

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