Summary
Ameriprise Financial, Inc. reported solid financial results for the nine months ended September 30, 2017, demonstrating a significant increase in pretax income and net income compared to the same period in 2016. This growth was driven by strong performance across its key segments, particularly Advice & Wealth Management and Asset Management, supported by market appreciation and client inflows. The company's robust management of expenses, including a decrease in Benefits, Claims, Losses and Settlement Expenses and Amortization of Deferred Acquisition Costs, contributed positively to the bottom line. While the company experienced some headwinds such as lower net investment income and increased ceded premiums in its Protection segment due to new reinsurance arrangements, the overall financial health appears strong. The company also highlighted its ongoing commitment to shareholder value through significant share repurchases and dividend payments. Management expressed confidence in its strategic objectives and ability to navigate the evolving financial markets and regulatory landscape.
Financial Highlights
32 data points| Revenue | $3.03B |
| Operating Expenses | $2.38B |
| Net Income | $507.00M |
| EPS (Basic) | $3.31 |
| EPS (Diluted) | $3.26 |
| Shares Outstanding (Basic) | 153.00M |
| Shares Outstanding (Diluted) | 155.40M |
Key Highlights
- 1Net income for the first nine months of 2017 surged by 42% to $1.30 billion, compared to $914 million in the prior year period.
- 2Pretax income for the first nine months of 2017 increased by 44% to $1.61 billion, driven by favorable 'unlocking' impacts, market appreciation, and positive net flows in Advice & Wealth Management.
- 3The Advice & Wealth Management segment saw a 27% increase in operating earnings to $837 million for the nine months ended September 30, 2017, with strong growth in management and financial advice fees.
- 4Total assets under management and administration (AUM/AUA) grew by 9% to $869.5 billion as of September 30, 2017, compared to the prior year, primarily fueled by the Advice & Wealth Management segment.
- 5Total expenses decreased by 3% to $7.25 billion for the nine months ended September 30, 2017, primarily due to the impact of 'unlocking' and lower benefits, claims, losses and settlement expenses.
- 6The company repurchased approximately 8.0 million shares of common stock during the first nine months of 2017 for $1.0 billion, underscoring its commitment to returning capital to shareholders.
- 7The company maintained a strong capital position, with statutory capital exceeding regulatory capital requirements across its key subsidiaries.