AMERIPRISE FINANCIAL INC
For the period ended Jun 30, 2024. Filed Aug 6, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 6, 2024
AMP$501.49-1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-06.
0000820027-24-000055
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsAmounts are less than $1 million.Current report: 10-Q
Period ended 2024-06-30; filed 2024-08-06.
0000820027-24-000079
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsAmounts are less than $1 million.The baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 234 previous paragraphs and 307 current paragraphs.
157 unchanged; 60 reworded; 50 added; 12 removed; 5 previous and 40 current paragraphs rearranged.
Tables are not compared: 17 previous and 26 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (50)
Current report
Pretax income decreased $76 million, or 7%, for the three months ended June 30, 2024 compared to the prior year period. The following impacts were significant drivers of the period-over-period change in pretax income:
Current report
•The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was an expense of $60 million for the three months ended June 30, 2024 compared to a benefit of $127 million for the prior year period.
Current report
•A favorable impact from the cumulative impact of wrap net inflows and higher transactional activity in Advice & Wealth Management.
Current report
Distribution fees increased $23 million, or 5%, for the three months ended June 30, 2024 compared to the prior year period primarily due to higher transactional activity and market appreciation, partially offset by $44 million of lower fees on off-balance sheet brokerage cash due to lower off-balance sheet brokerage cash balances.
Current report
Distribution expenses increased $202 million, or 16%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting higher market appreciation and higher transactional activity.
Current report
Change in fair value of market risk benefits increased $209 million, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting the following items:
Current report
•Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower benefit for the three months ended June 30, 2024 compared to the prior year period.
Current report
General and administrative expense decreased $10 million, or 1%, for the three months ended June 30, 2024 compared to the prior year period primarily due to our continued focus on operational efficiency and effectiveness, partially offset by $24 million of higher severance expense and higher volume related expenses and investments for business growth.
Current report
Adjusted operating earnings is the measure of segment profit or loss management uses to evaluate segment performance. Adjusted operating earnings should not be viewed as a substitute for GAAP pretax income. We believe the presentation of segment adjusted
Current report
operating earnings as we measure it for management purposes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitating a more meaningful trend analysis. See Note 19 to the Consolidated Financial Statements for further information on the presentation of segment results and our definition of adjusted operating earnings.
Current report
Ending wrap account assets increased $13.3 billion, or 3%, to $535.0 billion during the three months ended June 30, 2024 due to net inflows of $7.5 billion and market appreciation of $5.8 billion. Average advisory wrap account assets increased $81.0 billion, or 19%, compared to the prior year period primarily reflecting market appreciation and net inflows.
Current report
Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $91 million, or 12%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting higher average wrap account balances due to market appreciation and net inflows. Pretax adjusted operating margin was 31.1% for the three months ended June 30, 2024 compared to 31.2% for the prior year period.
Current report
Management and financial advice fees increased $217 million, or 16%, for the three months ended June 30, 2024 compared to the prior year period primarily due to growth in average wrap account assets. Average advisory wrap account assets increased $81.0 billion, or 19%, compared to the prior year period primarily reflecting market appreciation and net inflows.
Current report
Distribution fees increased $39 million, or 7%, for the three months ended June 30, 2024 compared to the prior year period reflecting higher transactional activity and market appreciation, partially offset by $44 million of lower fees on off-balance sheet brokerage cash due to lower off-balance sheet brokerage cash balances.
Current report
Net investment income, which excludes net realized investment gains or losses, increased $77 million, or 16%, for the three months ended June 30, 2024 compared to the prior year period primarily due to higher average invested assets due to growth in bank cash deposits and certificate products and the favorable impact of increasing short-term interest rates, including higher investment yields on the investment portfolios supporting the products.
Current report
Banking and deposit interest expense increased $41 million, or 31%, for the three months ended June 30, 2024 compared to the prior year period primarily due to higher average crediting rates and higher average volumes on certificates and bank cash deposits.
Current report
Distribution expenses increased $207 million, or 17%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting market appreciation and higher transactional activity.
Current report
Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $56 million, or 35%, for the three months ended June 30, 2024 compared to the prior year period primarily due to equity market appreciation and the positive impact from expense management actions, partially offset by the cumulative impact from net outflows.
Current report
Management and financial advice fees increased $39 million, or 6%, for the three months ended June 30, 2024 compared to the prior year period primarily due to higher average equity markets, partially offset by the cumulative impact from net outflows.
Current report
Distribution expenses increased $11 million, or 5%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting market appreciation, partially offset by the cumulative impact from net outflows.
Current report
General and administrative expense decreased $26 million, or 6%, for the three months ended June 30, 2024 compared to the prior year period reflecting the ongoing benefits from our initiatives to enhance operational efficiency and effectiveness.
Current report
Net investment income, which excludes net realized investment gains or losses, increased $63 million, or 31%, for the three months ended June 30, 2024 compared to the prior year period primarily due to higher interest rates, investment portfolio repositioning resulting in higher yields and increased SVA balances.
Current report
Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impacts, integration and restructuring charges, and the impact of consolidating CIEs, decreased $29 million, or 38%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting a $12 million benefit in our affordable housing partnerships in the prior year period, as well as adjustments and updates made in the fourth quarter of 2023 to the allocation of investment income across business segments that reflected increased market volatility and the interest rate environment.
Current report
General and administrative expense increased $35 million, or 58%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting $24 million of higher severance expenses associated with our initiatives to enhance operational efficiency and effectiveness.
Current report
Overall
Current report
Pretax income increased $647 million, or 40%, for the six months ended June 30, 2024 compared to the prior year period.
Current report
Net investment income increased $313 million, or 21%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting:
Current report
Banking and deposit interest expense increased $117 million, or 50%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and Ameriprise Bank cash deposits.
Current report
Change in fair value of market risk benefits decreased $298 million, or 76%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting the following items:
Current report
General and administrative expense increased $13 million, or 1%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting $28 million of higher severance expenses, higher volume related expenses and investments for business growth, partially offset by ongoing benefits from our initiatives to enhance operational efficiency and effectiveness as well as integration related expenses in the prior year period.
Current report
Income Taxes
Current report
Advice & Wealth Management
Current report
General and administrative expense increased $27 million, or 3%, for the six months ended June 30, 2024 compared to the prior year period primarily due to higher volume related expenses and investments for business growth.
Current report
Asset Management
Current report
Total segment AUM increased $5.0 billion, or 1%, during the six months ended June 30, 2024 primarily due to equity market appreciation, partially offset by net outflows. Net outflows were $17.7 billion for the six months ended June 30, 2024 and included an $8.0 billion asset transfer related to a legacy insurance partner.
Current report
Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $97 million, or 30%, for the six months ended June 30, 2024 compared to the prior year period primarily due to equity market appreciation and the positive impact from expense management actions, partially offset by the cumulative impact from net outflows.
Current report
Management and financial advice fees increased $87 million, or 6%, for the six months ended June 30, 2024 compared to the prior year period primarily due to equity market appreciation, partially offset by the cumulative impact from net outflows.
Current report
Distribution fees increased $11 million, or 6%, for the six months ended June 30, 2024 compared to the prior year period primarily due to market appreciation.
Current report
Distribution expenses increased $23 million, or 5%, for the six months ended June 30, 2024 compared to the prior year period primarily due to market appreciation, partially offset by the cumulative impact from net outflows.
Current report
General and administrative expense decreased $24 million, or 3%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting the ongoing benefits from our initiatives to enhance operational efficiency and effectiveness.
Showing the first 40 of 50 passages. Open the source sections for the rest.
Removed paragraphs (12)
Previous report
NM Not Meaningful - variance equal to or greater than 100%.
Previous report
Pretax income increased $723 million for the three months ended March 31, 2024 compared to the prior year period.
Previous report
Benefits, claims, losses and settlement expenses decreased $6 million, or 2%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the following items:
Previous report
Change in fair value of market risk benefits decreased $507 million, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the following items:
Previous report
General and administrative expense increased $23 million, or 2%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting higher volume related expenses and investments for business growth, an unfavorable change in the mark-to-market impact on share-based compensation due to share price appreciation, partially offset by higher one-time expenses in the prior year period.
Previous report
General and administrative expense increased $28 million, or 7%, for the three months ended March 31, 2024 compared to the prior year period primarily due to higher volume related expenses and investments for business growth.
Previous report
Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $41 million, or 25%, for the three months ended March 31, 2024 compared to the prior year period primarily due to equity market appreciation, partially offset by the cumulative impact from net outflows.
Previous report
Management and financial advice fees increased $48 million, or 7%, for the three months ended March 31, 2024 compared to the prior year period primarily due to equity market appreciation and an increase in performance fees, partially offset by the cumulative impact from net outflows.
Previous report
Distribution fees increased $5 million, or 6%, for the three months ended March 31, 2024 compared to the prior year period primarily due to market appreciation.
Previous report
Distribution fees increased $7 million, or 7%, for the three months ended March 31, 2024 compared to the prior year period primarily due to market appreciation.
Previous report
Distribution expenses increased $14 million, or 13%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting market appreciation and higher sales of SVAs.
Previous report
Interest and debt expense increased $7 million, or 39%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the issuance of $750 million and $600 million of unsecured senior notes in March 2023 and November 2023, respectively, partially offset by the maturity of $750 million of unsecured senior notes in October 2023.
Reworded paragraphs (60)
Previous wording
Ameriprise Financial is a diversified financial services company with a nearly 130-year history of providing financial solutions. We are a long-standing leader in financial planning and advice with $1.4 trillion in assets under management and administration as of March 31, 2024. We offer a broad range of products and services designed to achieve individual and institutional clients’ financial objectives.
Current wording
Ameriprise Financial is a diversified financial services company with a 130-year history of providing financial solutions. We are a long-standing leader in financial planning and advice with $1.4 trillion in assets under management and administration as of June 30, 2024. We offer a broad range of products and services designed to achieve individual and institutional clients’ financial objectives.
Previous wording
Total AUM increased $126.1 billion, or 13%, to $1.1 trillion as of March 31, 2024 compared to $1.0 trillion as of March 31, 2023 due to an $86.7 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $44.4 billion increase in Asset Management AUM primarily driven by equity market appreciation. Total AUA increased $63.2 billion, or 27%, to $297.5 billion as of March 31, 2024 compared to the prior year period primarily driven by equity market appreciation and an increase in third-party money market funds and brokered CDs. See our segment results of operations discussion below for additional information on changes in our AUM.
Current wording
Total AUM increased $100.7 billion, or 10%, to $1.1 trillion as of June 30, 2024 compared to $1.0 trillion as of June 30, 2023 due to an $80.0 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $25.3 billion increase in Asset Management AUM primarily driven by equity market appreciation, partially offset by net outflows. Total AUA increased $50.4 billion, or 20%, to $298.4 billion as of June 30, 2024 compared to the prior year period primarily driven by equity market appreciation and an increase in third-party money market funds and brokered CDs. See our segment results of operations discussion below for additional information on changes in our AUM.
Previous wording
•A favorable impact from higher average equity markets compared to the prior year period. Our average WEI, which is a proxy for equity movements on AUM, increased 21% in the quarter compared to the prior year period. The average S&P 500 index was 25% higher in the quarter compared to the prior year period.
Current wording
•A favorable impact from higher average equity markets compared to the prior year period. Our average WEI, which is a proxy for equity movements on AUM, increased 21% in the three months ended June 30, 2024 compared to the prior year period. The average S&P 500 index was 25% higher in the quarter compared to the prior year period.
Previous wording
Management and financial advice fees increased $262 million, or 12%, for the three months ended March 31, 2024 compared to the prior year period reflecting market appreciation and continued wrap account net inflows, partially offset by the cumulative impact of Asset Management net outflows.
Current wording
Management and financial advice fees increased $257 million, or 12%, for the three months ended June 30, 2024 compared to the prior year period reflecting market appreciation and wrap account net inflows, partially offset by the cumulative impact of Asset Management net outflows.
Previous wording
Interest and debt expense increased $10 million, or 14%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the issuance of $750 million and $600 million of unsecured senior notes in March 2023 and November 2023, respectively, partially offset by the maturity of $750 million of unsecured senior notes in October 2023.
Current wording
Net investment income increased $110 million, or 14%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting the following items:
Previous wording
Banking and deposit interest expense increased $76 million for the three months ended March 31, 2024 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and Ameriprise Bank cash deposits.
Current wording
Banking and deposit interest expense increased $41 million, or 31%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and Ameriprise Bank cash deposits.
Previous wording
Interest credited to fixed accounts decreased $32 million, or 20%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the following items:
Current wording
Interest credited to fixed accounts increased $24 million, or 15%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting the following items:
Previous wording
•A $78 million decrease in expense from other market impacts on indexed universal life (“IUL”) benefits, net of hedges, which was a benefit of $32 million for the three months ended March 31, 2024 compared to an expense of $46 million for the prior year period. The decrease in expense was primarily due to an increase in the IUL embedded derivative in the prior period, which reflected less discounting due to lower Treasury rates, partially offset by lower option costs due to a lower new money rate.
Current wording
•A $59 million increase in expense from other market impacts on indexed universal life (“IUL”) benefits, net of hedges, which was an expense of $44 million for the three months ended June 30, 2024 compared to a benefit of $15 million for the prior year period. The increase in expense was primarily due to an increase in the IUL embedded derivative in the current period, which reflected higher option costs due to a higher option budget and new money rate, offset by more discounting due to higher Treasury rates.
Previous wording
•A $68 million decrease in expense from market impacts on SVA embedded derivative, net of hedges in place to offset those risks. This decrease was primarily the result of a favorable $421 million change in the market impact on derivatives hedging the SVA embedded derivative and an unfavorable $340 million change in the market impact on SVA embedded derivative. The main market driver contributing to these changes was the equity market impact on the SVA embedded derivative net of the impact on the corresponding hedge assets resulted in an lower expense for the three months ended March 31, 2024 compared to the prior year period.
Current wording
Benefits, claims, losses and settlement expenses increased $4 million, or 1%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting the impact of increased volume in SVAs. This increase was partially offset by a $23 million decrease in expense from market impacts on SVA embedded derivative, net of hedges in place to offset those risks. This decrease was primarily the result of a favorable $107 million change in the market impact on SVA embedded derivative and an unfavorable $81 million change in the market impact on derivatives hedging the SVA embedded derivative. The main market driver contributing to these changes was the equity market impact on the SVA embedded derivative net of the impact on the corresponding hedge assets resulted in a benefit for the three months ended June 30, 2024 compared to an expense in the prior year period.
Previous wording
•Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a higher net expense for the three months ended March 31, 2024 compared to the prior year period.
Current wording
•Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a lower net expense for the three months ended June 30, 2024 compared to the prior year period.
Previous wording
Our effective tax rate was 18.8% for the three months ended March 31, 2024 compared to 15.9% for the prior year period. The increase in the effective tax rate for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 was primarily due to higher pretax income and a decrease in foreign tax credits net of addback, partially offset by an increase in incentive compensation compared to the prior year period. See Note 16 to our Consolidated Financial Statements for additional discussion on income taxes.
Current wording
Our effective tax rate was 21.1% for the three months ended June 30, 2024 compared to 21.1% for the prior year period. See Note 16 to our Consolidated Financial Statements for additional discussion on income taxes.
Previous wording
Ameriprise Bank is continuing its deposit growth trend, with bank deposit balances increasing $1.3 billion from the prior year period to $21.3 billion. The daily average interest-bearing deposit balance increased to $21.3 billion for the three months ended March 31, 2024 compared to $19.0 billion for the prior year period with the average interest rate paid on deposits increasing to 0.42% for the three months ended March 31, 2024 from 0.36% for the prior year period. Profitability at the bank increased compared to the prior year period primarily reflecting increased interest rates along with the trend in deposit growth. The Ameriprise Certificate Company experienced strong growth given the current interest rate environment with client deposits increasing $2.1 billion from the prior year period to $13.2 billion.
Current wording
Ameriprise Bank is continuing its deposit growth trend, with bank deposit balances increasing $0.5 billion from the prior year period to $21.5 billion. The daily average interest-bearing deposit balance increased to $21.3 billion for the three months ended June 30, 2024 compared to $20.6 billion for the prior year period with the average interest rate paid on deposits increasing to 0.44% for the three months ended June 30, 2024 from 0.38% for the prior year period. Profitability at the bank increased compared to the prior year period primarily reflecting increased interest rates along with the trend in deposit growth. Ameriprise Certificate Company (“ACC”) client deposits increased $0.5 billion from the prior year period to $12.5 billion. After a period of strong growth during a rising interest rate environment, ACC has experienced net outflows during the three months ended June 30, 2024.
Previous wording
(1) Retail Fund performance rankings for each fund are measured on a consistent basis against the most appropriate peer group or index. Peer groupings of Columbia funds are defined by Lipper category and are based on the Primary Share Class (i.e. Institutional if available, otherwise Advisor or Instl3 share class), net of fees. Peer groupings of Threadneedle funds are defined by either IA or Morningstar index and are based on the Primary Share Class. Comparison to Index are measured gross of fees.
Current wording
(1) Retail Fund performance rankings for each fund are measured on a consistent basis against the most appropriate peer group or index. Peer groupings of Columbia funds are defined by Lipper category and are based on the Primary Share Class (i.e. Institutional if available, otherwise Advisor or Institutional 3 share class), net of fees. Peer groupings of Threadneedle funds are defined by either IA or Morningstar index and are based on the Primary Share Class. Comparison to Index are measured gross of fees.
Previous wording
(2) Columbia funds are available for purchase by U.S. customers. Out of 89 Columbia funds rated (based on primary share class), 3 received a 5-star Overall Rating and 38 received a 4-star Overall Rating. Out of 145 Threadneedle funds rated (based on highest-rated share class), 22 received a 5-star Overall Rating and 54 received a 4-star Overall Rating. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.
Current wording
(2) Columbia funds are available for purchase by U.S. customers. Out of 89 Columbia funds rated (based on primary share class), 4 received a 5-star Overall Rating and 40 received a 4-star Overall Rating. Out of 139 Threadneedle funds rated (based on highest-rated share class), 20 received a 5-star Overall Rating and 50 received a 4-star Overall Rating. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.
Previous wording
Total segment AUM increased $15.2 billion, or 2%, during the three months ended March 31, 2024 primarily due to equity market appreciation, partially offset by net outflows.
Current wording
Total segment AUM decreased $10.2 billion, or 2%, during the three months ended June 30, 2024 primarily due to net outflows. Net outflows were $12.0 billion in the second quarter of 2024 and included an $8.0 billion asset transfer related to a legacy insurance partner.
Previous wording
Variable annuity account balances increased 9% to $84.0 billion as of March 31, 2024 compared to the prior year period due to market appreciation, partially offset by net outflows of $3.2 billion. Variable annuity sales increased 32% compared to the prior year period reflecting an increase in sales of SVAs. Account values with living benefit riders declined to 53% as of March 31, 2024 compared to 57% a year ago reflecting our actions to optimize our business mix. This trend is expected to continue and meaningfully shift the mix of business away from products with living benefit guarantees over time.
Current wording
Variable annuity account balances increased 8% to $84.5 billion as of June 30, 2024 compared to the prior year period due to market appreciation, partially offset by net outflows of $3.2 billion. Variable annuity sales increased 45% compared to the prior year period reflecting an increase in sales of SVAs. Account values with living benefit riders declined to 52% as of June 30, 2024 compared to 56% a year ago reflecting our actions to optimize our business mix. This trend is expected to continue and meaningfully shift the mix of business away from products with living benefit guarantees over time.
Previous wording
Premiums, policy and contract charges increased $28 million, or 8%, for the three months ended March 31, 2024 compared to the prior year period primarily due to higher sales of life contingent payout annuities.
Current wording
Distribution expenses increased $9 million, or 8%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting market appreciation and higher sales of SVAs.
Previous wording
Change in fair value of market risk benefits, which exclude the market impact on variable annuity guaranteed benefits (net of hedges), increased $14 million, or 12%, for the three months ended March 31, 2024 compared to the prior year period reflecting market appreciation on contractual fees.
Current wording
Change in fair value of market risk benefits, which exclude the market impact on variable annuity guaranteed benefits (net of hedges), increased $19 million, or 15%, for the three months ended June 30, 2024 compared to the prior year period reflecting market appreciation on contractual fees.
Previous wording
Our Corporate & Other segment includes our closed blocks of long term care (“LTC”) insurance and fixed annuity and fixed indexed annuity (“FA”) business.
Current wording
Our Corporate & Other segment includes our closed blocks of LTC insurance and fixed annuity and fixed indexed annuity (“FA”) business.
Previous wording
Our Corporate & Other segment pretax adjusted operating loss excludes net realized investment gains or losses, the market impact on fixed index annuity benefits (net of hedges), the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impact, gain or loss on disposal of a business that is not considered discontinued operations, integration and restructuring charges, and the impact of consolidating CIEs. Our Corporate & Other segment pretax adjusted operating loss increased $15 million, or 20%, for the three months ended March 31, 2024 compared to the prior year period.
Current wording
Our Corporate & Other segment pretax adjusted operating loss excludes net realized investment gains or losses, the market impact on fixed annuity benefits (net of hedges), the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impact, gain or loss on disposal of a business that is not considered discontinued operations, integration and restructuring charges, and the impact of consolidating CIEs. Our Corporate & Other segment pretax adjusted operating loss increased $59 million for the three months ended June 30, 2024 compared to the prior year period.
Previous wording
LTC insurance had pretax adjusted operating earnings of $16 million for the three months ended March 31, 2024 compared to pretax adjusted operating earnings of $8 million for the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.
Current wording
LTC insurance had a pretax adjusted operating earnings of $12 million for the three months ended June 30, 2024 compared to pretax adjusted operating earnings of $1 million for the prior year period primarily reflecting improved claims experience and the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.
Previous wording
The FA business had a pretax adjusted operating loss of $6 million for the three months ended March 31, 2024 compared to a pretax adjusted operating loss of $9 million for the prior year period. Fixed deferred annuity account balances declined 11% to $6.1 billion as of March 31, 2024 compared to the prior year period as policies continue to lapse and we previously discontinued new sales of fixed deferred annuities.
Current wording
The FA business had a pretax adjusted operating loss of $8 million for the three months ended June 30, 2024 compared to a pretax adjusted operating loss of $5 million for the prior year period. Fixed deferred annuity account balances declined 11% to $5.9 billion as of June 30, 2024 compared to the prior year period as policies continue to lapse and we previously discontinued new sales of fixed deferred annuities.
Previous wording
•The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was a benefit of $140 million for the three months ended March 31, 2024 compared to an expense of $475 million for the prior year period.
Current wording
•The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was a benefit of $80 million for the six months ended June 30, 2024 compared to an expense of $348 million for the prior year period.
Previous wording
Distribution fees decreased $11 million, or 2%, for the three months ended March 31, 2024 compared to the prior year period due to $76 million of lower fees on off-balance sheet brokerage cash due to a decrease in average balances, partially offset by strong transactional activity.
Current wording
Distribution fees increased $12 million, or 1%, for the six months ended June 30, 2024 compared to the prior year period due to market appreciation and strong transactional activity, partially offset by $120 million of lower fees on off-balance sheet brokerage cash due to a decrease in average balances.
Previous wording
•The favorable impact of growth in Ameriprise Bank, FSB (“Ameriprise Bank”) customer deposits and certificate business as a result of the market environment along with higher average balances due to the growth in SVAs.
Current wording
•The favorable impact of growth in Ameriprise Bank customer deposits and certificate business as a result of the market environment along with higher average balances due to the growth in SVAs.
Previous wording
Distribution expenses increased $193 million, or 16%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting higher advisor compensation from higher average wrap account assets and increased transactional activity, as well as continued investments in recruiting experienced advisors.
Current wording
Distribution expenses increased $395 million, or 16%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting higher advisor compensation from higher average wrap account assets and increased transactional activity, as well as continued investments in recruiting experienced advisors.
Previous wording
•A $47 million increase in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits. The unfavorable impact of the nonperformance credit spread was $17 million for the three months ended March 31, 2024 compared to a favorable impact of $30 million for the prior year period.
Current wording
•A $20 million increase in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits. The unfavorable impact of the nonperformance credit spread was $12 million for the six months ended June 30, 2024 compared to a favorable impact of $8 million for the prior year period.
Previous wording
•A $520 million decrease in expense from market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks. This decrease was the result of a favorable $1.3 billion change in the market impact on variable annuity guaranteed benefits reserves and an unfavorable $738 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits. The main market drivers contributing to these changes are summarized below:
Current wording
•A $332 million decrease in expense from market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks. This decrease was the result of a favorable $546 million change in the market impact on variable annuity guaranteed benefits reserves and an unfavorable $203 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits. The main market drivers contributing to these changes are summarized below:
Previous wording
•Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a higher benefit for the three months ended March 31, 2024 compared to the prior year period.
Current wording
•Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a higher benefit for the six months ended June 30, 2024 compared to the prior year period.
Previous wording
•Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the three months ended March 31, 2024 compared to an expense for the prior year period.
Current wording
•Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the six months ended June 30, 2024 compared to an expense for the prior year period.
Previous wording
Ending wrap account assets increased $33.5 billion, or 7%, to $521.7 billion during the three months ended March 31, 2024 due to market appreciation and other of $27.0 billion and net inflows of $6.5 billion. Average advisory wrap account assets increased $71.2 billion, or 17%, compared to the prior year period reflecting market appreciation and net inflows.
Current wording
Ending wrap account assets increased $46.8 billion, or 10%, to $535.0 billion during the six months ended June 30, 2024 due to market appreciation and other of $32.8 billion and net inflows of $14.0 billion. Average advisory wrap account assets increased $76.1 billion, or 18%, compared to the prior year period reflecting market appreciation and net inflows.
Previous wording
Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $69 million, or 10%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting market appreciation, higher short-term interest rates and growth in bank cash deposits and certificate products along with the cumulative impact of client net flows. Pretax adjusted operating margin was 29.8% for the for the three months ended March 31, 2024 compared to 30.6% for the prior year period.
Current wording
Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $160 million, or 11%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting market appreciation, higher short-term interest rates and growth in bank cash deposits and certificate products along with the cumulative impact of client net flows. Pretax adjusted operating margin was 30.4% for the for the six months ended June 30, 2024 compared to 30.9% for the prior year period.
Previous wording
Management and financial advice fees increased $210 million, or 16%, for the three months ended March 31, 2024 compared to the prior year period primarily due to higher average wrap account assets. Average advisory wrap account assets increased $71.2 billion, or 17%, compared to the prior year period reflecting market appreciation and net inflows.
Current wording
Management and financial advice fees increased $427 million, or 16%, for the six months ended June 30, 2024 compared to the prior year period primarily due to higher average wrap account assets. Average advisory wrap account assets increased $76.1 billion, or 18%, compared to the prior year period reflecting market appreciation and net inflows.
Previous wording
Distribution fees increased $5 million, or 1%, for the three months ended March 31, 2024 compared to the prior year period reflecting strong transactional activity, partially offset by $76 million of lower fees on off-balance sheet brokerage cash due to a decrease in average balances.
Current wording
Distribution fees increased $44 million, or 4%, for the six months ended June 30, 2024 compared to the prior year period reflecting strong transactional activity, partially offset by $120 million of lower fees on off-balance sheet brokerage cash due to a decrease in average balances.
Previous wording
Net investment income, which excludes net realized investment gains or losses, increased $151 million, or 37%, for the three months ended March 31, 2024 compared to the prior year period primarily due to higher average invested assets due to increased bank and certificate deposits and the favorable impact of increased short-term interest rates, including higher investment yields on the investment portfolio supporting the bank and certificate products.
Current wording
Net investment income, which excludes net realized investment gains or losses, increased $228 million, or 26%, for the six months ended June 30, 2024 compared to the prior year period primarily due to higher average invested assets due to increased bank and certificate deposits and the favorable impact of increased short-term interest rates, including higher investment yields on the investment portfolio supporting the bank and certificate products.
Previous wording
Banking and deposit interest expense increased $76 million, or 74%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting higher average crediting rates and higher average balances on certificates and bank cash deposits.
Current wording
Banking and deposit interest expense increased $117 million, or 50%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting higher average crediting rates and higher average balances on certificates and bank cash deposits.
Previous wording
Distribution expenses increased $196 million, or 17%, for the three months ended March 31, 2024 compared to the prior year period reflecting higher advisor compensation from higher average wrap account assets and increased transactional activity, as well as continued investments in recruiting experienced advisors.
Current wording
Distribution expenses increased $403 million, or 17%, for the six months ended June 30, 2024 compared to the prior year period reflecting higher advisor compensation from higher average wrap account assets and increased transactional activity, as well as continued investments in recruiting experienced advisors.
Previous wording
Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $5 million, or 3%, for the three months ended March 31, 2024 compared to the prior year period, primarily reflecting higher interest rates and market appreciation, partially offset by higher expenses associated with increased sales.
Current wording
Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $12 million, or 3%, for the six months ended June 30, 2024 compared to the prior year period, primarily reflecting higher interest rates and market appreciation, partially offset by higher expenses associated with increased sales.
Previous wording
Management and financial advice fees increased $6 million, or 3%, for the three months ended March 31, 2024 compared to the prior year period primarily due to market appreciation, partially offset by the impact from variable annuity net outflows.
Current wording
Management and financial advice fees increased $10 million, or 3%, for the six months ended June 30, 2024 compared to the prior year period primarily due to market appreciation, partially offset by the impact from variable annuity net outflows.
Previous wording
Net investment income, which excludes net realized investment gains or losses, increased $48 million, or 25%, for the three months ended March 31, 2024 compared to the prior year period primarily due to higher interest rates and increased SVA balances.
Current wording
Net investment income, which excludes net realized investment gains or losses, increased $111 million, or 28%, for the six months ended June 30, 2024 compared to the prior year period primarily due to higher interest rates and increased SVA balances.
Showing the first 40 of 60 pairs. Open the source sections for the rest.
Rearranged current paragraphs (40)
Current report — wording carried from elsewhere
•The favorable impact of growth in Ameriprise Bank, FSB (“Ameriprise Bank”) customer deposits and certificate business as a result of the market environment.
Current report — wording carried from elsewhere
•A $27 million decrease in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits. The favorable impact of the nonperformance credit spread was $5 million for the three months ended June 30, 2024 compared to an unfavorable impact of $22 million for the prior year period.
Current report — wording carried from elsewhere
•A $188 million increase in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks. This increase was the result of an unfavorable $725 million change in the market impact on variable annuity guaranteed benefits reserves, partially offset by a favorable $534 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits. The main market drivers contributing to these changes are summarized below:
Current report — wording carried from elsewhere
•Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower benefit for the three months ended June 30, 2024 compared to the prior year period.
Current report — wording carried from elsewhere
(1) Amounts represent local currency to U.S. dollar translation for reporting purposes.
Current report — wording carried from elsewhere
Distribution fees increased $6 million, or 7%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting market appreciation, partially offset by the cumulative impact from net outflows.
Current report — wording carried from elsewhere
Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $7 million, or 4%, for the three months ended June 30, 2024 compared to prior year period primarily reflecting higher interest rates and market appreciation, partially offset by higher expenses associated with increased sales.
Current report — wording carried from elsewhere
Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, increased $38 million, or 20%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting increased volume in SVAs.
Current report — wording carried from elsewhere
Consolidated Results of Operations for the Six Months Ended June 30, 2024 and 2023
Current report — wording carried from elsewhere
The following table presents our consolidated results of operations:
Current report — wording carried from elsewhere
•A favorable impact from higher average equity markets compared to the prior year period. Our average WEI, which is a proxy for equity movements on AUM, increased 21% in the six months ended June 30, 2024 compared to the prior year period. The average S&P 500 index was 25% higher in the six months ended June 30, 2024 compared to the prior year period.
Current report — wording carried from elsewhere
•A favorable impact from the trend in rising interest rates on the investment portfolio yield, along with higher balances in bank, certificate and SVA products.
Current report — wording carried from elsewhere
•An unfavorable impact from the cumulative impact of Asset Management net outflows.
Current report — wording carried from elsewhere
Management and financial advice fees increased $519 million, or 12%, for the six months ended June 30, 2024 compared to the prior year period reflecting market appreciation and continued wrap account net inflows, partially offset by the cumulative impact of Asset Management net outflows.
Current report — wording carried from elsewhere
•The favorable impact of the trend in rising interest rates on the investment portfolio yield.
Current report — wording carried from elsewhere
Interest credited to fixed accounts decreased $8 million, or 2%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting the following items:
Current report — wording carried from elsewhere
•A $19 million decrease in expense from other market impacts on IUL benefits, net of hedges, which was an expense of $12 million for the six months ended June 30, 2024 compared to an expense of $31 million for the prior year period. The decrease in expense was primarily due to an increase in the IUL embedded derivative in the prior period, which reflected less discounting due to lower Treasury rates and higher option costs due to a higher new money rate.
Current report — wording carried from elsewhere
Benefits, claims, losses and settlement expenses decreased $2 million, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting a $90 million decrease in expense from market impacts on SVA embedded derivative, net of hedges in place to offset those risks. This decrease was primarily the result of a favorable $340 million change in the market impact on derivatives hedging the SVA embedded derivative and an unfavorable $233 million change in the market impact on SVA embedded derivative. The main market driver contributing to these changes was the equity market impact on the SVA embedded derivative net of the impact on the corresponding hedge assets resulted in a lower expense for the six months ended June 30, 2024 compared to the prior year period. This decrease was partially offset by the impact of higher sales of life contingent payout annuities and increased volume in SVAs.
Current report — wording carried from elsewhere
•Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a higher expense for the six months ended June 30, 2024 compared to the prior year period.
Current report — wording carried from elsewhere
•Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a lower net expense for the six months ended June 30, 2024 compared to the prior year period.
Current report — wording carried from elsewhere
Our effective tax rate was 19.9% for the six months ended June 30, 2024 compared to 19.5% for the prior year period. See Note 16 to our Consolidated Financial Statements for additional discussion on income taxes.
Current report — wording carried from elsewhere
Results of Operations by Segment for the Six Months Ended June 30, 2024 and 2023
Current report — wording carried from elsewhere
The following table presents summary financial information by segment:
Current report — wording carried from elsewhere
The following table presents the changes in wrap account assets and average balances for the six months ended June 30:
Current report — wording carried from elsewhere
(1) Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts. Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.
Current report — wording carried from elsewhere
(2) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period excluding the most recent month for the six months ended June 30, 2024 and 2023, which is reflective of our billing cycle.
Current report — wording carried from elsewhere
The following table presents the results of operations of our Advice & Wealth Management segment on an adjusted operating basis:
Current report — wording carried from elsewhere
Ameriprise Bank is continuing its deposit growth trend, with bank deposit balances increasing $0.5 billion from the prior year period to $21.5 billion. The daily average interest-bearing deposit balance increased to $21.3 billion for the six months ended June 30, 2024 compared to $19.8 billion for the prior year period with the average interest rate paid on deposits increasing to 0.43% for the six months ended June 30, 2024 from 0.37% for the prior year period. Profitability at the bank increased compared to the prior year period primarily reflecting increased interest rates along with the trend in deposit growth. ACC client deposits increased $0.5 billion from the prior year period to $12.5 billion. After a period of strong growth during a rising interest rate environment, ACC has experienced net outflows during the six months ended June 30, 2024.
Current report — wording carried from elsewhere
(1) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.
Current report — wording carried from elsewhere
The following table presents the changes in global managed assets:
Current report — wording carried from elsewhere
(2) Global Institutional inflows and outflows include net flows from our structured annuity product and Ameriprise Bank.
Current report — wording carried from elsewhere
(3) Included in Market appreciation (depreciation) and other for Global Institutional is the change in affiliated general account balance, excluding net flows related to our structured variable annuity product and Ameriprise Bank.
Current report — wording carried from elsewhere
(4) Legacy insurance partners assets and net flows are included in the rollforwards above.
Current report — wording carried from elsewhere
The following table presents the results of operations of our Asset Management segment on an adjusted operating basis:
Current report — wording carried from elsewhere
The following table presents the results of operations of our Retirement & Protection Solutions segment on an adjusted operating basis:
Current report — wording carried from elsewhere
Change in fair value of market risk benefits, which exclude the market impact on variable annuity guaranteed benefits (net of hedges), increased $33 million, or 14%, for the six months ended June 30, 2024 compared to the prior year period reflecting market appreciation on contractual fees.
Current report — wording carried from elsewhere
The following table presents the results of operations of our Corporate & Other segment on an adjusted operating basis:
Current report — wording carried from elsewhere
Our Corporate & Other segment pretax adjusted operating loss excludes net realized investment gains or losses, the market impact on fixed index annuity benefits (net of hedges), the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impact, gain or loss on disposal of a business that is not considered discontinued operations, integration and restructuring charges, and the impact of consolidating CIEs. Our Corporate & Other segment pretax adjusted operating loss increased $74 million, or 55%, for the six months ended June 30, 2024 compared to the prior year period.
Current report — wording carried from elsewhere
LTC insurance had pretax adjusted operating earnings of $28 million for the six months ended June 30, 2024 compared to pretax adjusted operating earnings of $9 million for the prior year period primarily reflecting improved claims experience and the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.
Current report — wording carried from elsewhere
The FA business had a pretax adjusted operating loss of $14 million for the six months ended June 30, 2024 compared to a pretax adjusted operating loss of $14 million for the prior year period.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
Net investment income increased $203 million, or 29%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting:
Previous report — wording carried elsewhere
•Partially offset by the impact of higher sales of life contingent payout annuities and increased volume in SVAs.
Previous report — wording carried elsewhere
Distribution expenses increased $12 million, or 5%, for the three months ended March 31, 2024 compared to the prior year period primarily due to market appreciation, partially offset by the cumulative impact from net outflows.
Previous report — wording carried elsewhere
contains various administrative, reporting, legal and financial covenants. We remained in compliance with all such covenants at March 31, 2024.
Previous report — wording carried elsewhere
received cash dividends or a return of capital from its subsidiaries of $605 million (including $200 million from RiverSource Life) and contributed cash to its subsidiaries of $138 million.