Summary
Ameriprise Financial, Inc. reported a strong third quarter of 2021, with significant year-over-year increases in pretax income and net income. Total net revenues slightly decreased by 3% due to a large decrease in premiums, policy and contract charges, largely offset by substantial growth in management and financial advice fees and net investment income. The company completed a significant reinsurance transaction of approximately $7.0 billion of annuity policies, which contributed a net realized gain of $532 million. Additionally, the acquisition of BMO Financial Group's European asset management business, adding $131 billion in assets under management, was completed in November 2021. The company's financial performance was bolstered by strong net inflows in its Advice & Wealth Management and Asset Management segments, driven by favorable market appreciation and growth in client assets.
Financial Highlights
31 data points| Revenue | $2.90B |
| Operating Expenses | $1.76B |
| Net Income | $926.00M |
| EPS (Basic) | $7.96 |
| EPS (Diluted) | $7.77 |
| Shares Outstanding (Basic) | 116.40M |
| Shares Outstanding (Diluted) | 119.20M |
Key Highlights
- 1Ameriprise Financial reported a significant increase in pretax income to $1.27 billion for Q3 2021, a substantial improvement from a pretax loss of $184 million in Q3 2020.
- 2Net income for Q3 2021 was $1.03 billion, compared to a net loss of $140 million in the prior year period.
- 3Total net revenues for Q3 2021 were $2.90 billion, a slight decrease of 3% from $3.00 billion in Q3 2020, mainly due to a decline in premiums, policy and contract charges.
- 4Management and financial advice fees increased by 25% to $2.37 billion, driven by higher average equity markets and increased wrap account net inflows.
- 5The company completed a reinsurance transaction for approximately $7.0 billion of fixed deferred and immediate annuity policies, resulting in a net realized gain of $532 million on investments sold.
- 6Acquisition of BMO Financial Group's European asset management business was completed in November 2021, adding approximately $131 billion in assets under management.
- 7The Advice & Wealth Management segment saw a 43% increase in adjusted operating earnings to $459 million, driven by higher average wrap account assets and improved transactional activity.