AMERIPRISE FINANCIAL INC Quarterly Report for Q2 Ended Jun 30, 2022

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.

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.

Frequently Asked Questions