8-KEarnings & ResultsExhibits & Filings

AMERIPRISE FINANCIAL INC 8-K Report, Financial Results (Jan 24, 2018)

Filed January 24, 2018For Securities:AMP

Summary

Ameriprise Financial, Inc. (AMP) filed an 8-K on January 24, 2018, to report its financial results for the fourth quarter of 2017. The filing primarily consists of a press release and a statistical supplement, both of which provide detailed financial information. Investors should note that Ameriprise presents its results on both a GAAP and a non-GAAP adjusted basis. The non-GAAP adjustments are significant and aim to provide a clearer view of the company's core operations and underlying performance by excluding items such as the impact of consolidating certain investment entities, integration/restructuring charges, tax reform impacts, market fluctuations on guaranteed benefits, and investment gains/losses. Key to investors is understanding the company's rationale for using these non-GAAP measures. Ameriprise management believes these adjusted figures facilitate a more meaningful trend analysis and better reflect the company's underlying performance. These measures are also used in business planning, analysis, and compensation decisions, and are utilized by some analysts and investors for comparability. Investors should carefully review the definitions and reconciliation of these non-GAAP metrics provided in the attached exhibits to fully assess the company's financial condition and operational results.

Key Highlights

  • 1Ameriprise Financial announced its fourth quarter and full-year 2017 financial results via an 8-K filing on January 24, 2018.
  • 2The company provided both GAAP and non-GAAP financial results, with non-GAAP measures excluding various items for clearer operational insight.
  • 3Significant non-GAAP adjustments include exclusions for consolidating certain investment entities (CIEs), integration/restructuring charges, and the impact of the Tax Cuts and Jobs Act.
  • 4Market impacts on variable annuity guaranteed benefits, indexed universal life benefits, and fixed indexed annuity benefits are also excluded from non-GAAP measures.
  • 5Net realized investment gains/losses and income/loss from discontinued operations are further excluded in the adjusted reporting.
  • 6The company also presents non-GAAP debt, capital, and shareholders' equity measures, which exclude items like Accumulated Other Comprehensive Income (AOCI) and fair value of hedges.
  • 7Management believes these non-GAAP measures offer a better reflection of core operations and facilitate trend analysis.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce and provide details on Ameriprise Financial's financial results for the fourth quarter of 2017. It includes a press release and a statistical supplement containing this information.

Ameriprise presents both GAAP and non-GAAP results to provide investors with multiple perspectives. The non-GAAP measures are adjusted to exclude certain items that management believes do not reflect the underlying performance of the company's core operations, thereby facilitating a more meaningful trend analysis and comparability for some investors and analysts.

Key exclusions from Ameriprise's non-GAAP measures include the impact of consolidating certain investment entities (CIEs), integration/restructuring charges, the effects of the Tax Cuts and Jobs Act, market impacts on various guaranteed insurance benefits, net realized investment gains or losses, and income/loss from discontinued operations. They also adjust capital and debt measures by excluding items like Accumulated Other Comprehensive Income (AOCI) and the fair value of hedges.

The detailed financial results and definitions for both GAAP and non-GAAP measures are provided in the exhibits attached to this 8-K filing: Exhibit 99.1 (Press Release) and Exhibit 99.2 (Statistical Supplement).