Summary
Ameriprise Financial, Inc. (AMP) reported its financial results for the nine months and third quarter ended September 30, 2016. The company experienced a significant decrease in pretax income for both periods compared to the prior year, largely due to the impact of 'unlocking' related to updated valuation assumptions, particularly in the Annuities segment. While total net revenues saw a slight decrease for the nine months, they increased for the third quarter. Expenses, however, rose in both periods, primarily driven by the aforementioned unlocking impacts and increased benefits, claims, losses, and settlement expenses. Key segments like Advice & Wealth Management showed modest growth in operating earnings, while Asset Management and Annuities experienced declines. The Protection segment's operating earnings also decreased. The company continued its share repurchase program and paid dividends to shareholders, reflecting a commitment to capital return. Management highlighted ongoing efforts to adapt to the low interest rate environment and regulatory changes, such as the Department of Labor's fiduciary rule.
Financial Highlights
32 data points| Revenue | $3.01B |
| Operating Expenses | $2.76B |
| Net Income | $215.00M |
| EPS (Basic) | $1.31 |
| EPS (Diluted) | $1.30 |
| Shares Outstanding (Basic) | 164.00M |
| Shares Outstanding (Diluted) | 165.80M |
Key Highlights
- 1Net income attributable to Ameriprise Financial decreased by 46% to $215 million for the three months ended September 30, 2016, compared to $397 million in the prior year.
- 2Pretax income for the nine months ended September 30, 2016, decreased by 34% to $1.123 billion compared to $1.696 billion in the prior year.
- 3Total net revenues increased by 4% to $3.0 billion for the three months ended September 30, 2016, primarily driven by increases in net investment income and other revenues.
- 4Total net revenues decreased by 5% to $8.6 billion for the nine months ended September 30, 2016, primarily due to decreases in management and financial advice fees, distribution fees, and net investment income.
- 5Total expenses increased by 14% to $2.8 billion for the three months ended September 30, 2016, primarily due to the impact of unlocking and higher benefits, claims, losses and settlement expenses.
- 6Total expenses increased by 2% to $7.5 billion for the nine months ended September 30, 2016, primarily due to the impact of unlocking, partially offset by the deconsolidation of certain investment entities.
- 7The company paid $368 million in dividends to shareholders for the nine months ended September 30, 2016, and repurchased $1.3 billion of common stock during the same period.