Summary
Ameriprise Financial, Inc. reported solid financial results for the second quarter and first half of 2022, demonstrating resilience amidst market volatility. Total net revenues increased to $3.51 billion for the quarter and $7.16 billion for the six months, driven by growth in management and financial advice fees, alongside a favorable impact from rising interest rates. Net income saw a significant increase, up 28% to $756 million for the quarter and 48% to $1.52 billion for the first half, largely due to a substantial reduction in benefits, claims, losses, and settlement expenses. The company's Advice & Wealth Management segment showed strong performance, with adjusted operating earnings up 16% for the quarter, driven by higher average wrap account balances and favorable interest rates. The Asset Management segment, while facing headwinds from market depreciation and net outflows, reported a 5% increase in adjusted operating earnings for the first half, supported by the BMO Global Asset Management (EMEA) acquisition and higher performance fees. The Retirement & Protection Solutions segment's adjusted operating earnings remained stable. Overall, Ameriprise Financial continues to navigate the current economic landscape effectively, with a strategic focus on optimizing its product mix towards lower-risk offerings and maintaining robust capital levels.
Financial Highlights
32 data points| Revenue | $3.49B |
| Operating Expenses | $2.71B |
| Net Income | $614.00M |
| EPS (Basic) | $5.47 |
| EPS (Diluted) | $5.37 |
| Shares Outstanding (Basic) | 112.30M |
| Shares Outstanding (Diluted) | 114.40M |
Key Highlights
- 1Total net revenues increased 3% to $3.51 billion for the three months ended June 30, 2022, and 6% to $7.16 billion for the six months ended June 30, 2022.
- 2Net income surged 28% to $756 million for the three months ended June 30, 2022, and 48% to $1.52 billion for the six months ended June 30, 2022.
- 3Benefits, claims, losses and settlement expenses decreased significantly by 80% for the quarter due to favorable market impacts and lower mean reversion expenses.
- 4Advice & Wealth Management segment pretax adjusted operating earnings grew 16% year-over-year for the quarter, driven by higher average wrap account assets and favorable interest rates.
- 5Total Assets Under Management and Administration decreased 3% to $1.17 trillion as of June 30, 2022, compared to the prior year, primarily due to equity market depreciation.
- 6The company maintained strong capital positions, with $7.5 billion in cash and cash equivalents at quarter-end, and had $2.5 billion remaining under its share repurchase authorization.
- 7Ameriprise Financial is strategically shifting its business mix towards lower-risk offerings, including discontinuing new sales of variable annuities with living benefit guarantees.