Summary
Ameriprise Financial, Inc. (AMP) reported strong first-quarter 2022 results, driven by robust growth in its Advice & Wealth Management and Asset Management segments. Total revenues increased by 9% to $3.66 billion, and pretax income saw a significant jump of 87% to $923 million compared to the same period in 2021. This performance was bolstered by higher average equity markets, positive net inflows in wealth management, and contributions from recent acquisitions. The company's strategic focus on shifting its business mix towards lower-risk offerings, including discontinuing sales of certain variable annuity products with living benefit guarantees, appears to be contributing to a more favorable risk profile. While market volatility and interest rate environments continue to present challenges, Ameriprise demonstrated effective management of its investment portfolio and hedging strategies, leading to improved profitability and a strong capital position.
Financial Highlights
31 data points| Revenue | $3.63B |
| Operating Expenses | $2.62B |
| Net Income | $825.00M |
| EPS (Basic) | $7.26 |
| EPS (Diluted) | $7.10 |
| Shares Outstanding (Basic) | 113.70M |
| Shares Outstanding (Diluted) | 116.20M |
Key Highlights
- 1Total revenues increased by 9% year-over-year to $3.66 billion.
- 2Pretax income more than doubled, rising 87% to $923 million, reflecting improved operational performance and favorable market conditions.
- 3Advice & Wealth Management segment adjusted operating earnings grew 13% to $440 million, driven by higher average wrap account balances.
- 4Asset Management segment adjusted operating earnings increased significantly by 25% to $285 million, largely due to the acquisition of BMO Global Asset Management (EMEA) and higher average AUM.
- 5The company maintained a strong capital position with $6.6 billion in cash and cash equivalents (excluding CIEs and restricted cash) as of March 31, 2022.
- 6Shareholders' equity decreased to $5.01 billion from $5.69 billion at the end of 2021, primarily due to substantial unrealized losses in other comprehensive income, largely driven by market declines in securities.