AMERIPRISE FINANCIAL INC
For the period ended Mar 31, 2025. Filed May 2, 2025.
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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.
Mar 31, 2025 · Filed May 2, 2025
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 2024-09-30; filed 2024-11-01.
0000820027-24-000094
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 2025-03-31; filed 2025-05-02.
0000820027-25-000048
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 318 previous paragraphs and 224 current paragraphs.
136 unchanged; 66 reworded; 20 added; 87 removed; 29 previous and 2 current paragraphs rearranged.
Tables are not compared: 28 previous and 19 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 (20)
Current report
Assets Under Management, Administration and Advisement
Current report
•The favorable impact from the cumulative impact of wrap net inflows and improved transactional activity.
Current report
Change in fair value of market risk benefits increased $515 million for the three months ended March 31, 2025 compared to the prior year period primarily reflecting the following items:
Current report
•Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the three months ended March 31, 2025 compared to the prior year period.
Current report
The following table presents Advice & Wealth Management total client assets as of March 31:
Current report
Total client assets increased $68.7 billion, or 7%, to $1.0 trillion compared to a year ago primarily due to market appreciation and client net inflows.
Current report
The following table presents client cash balances as of March 31:
Current report
The following table presents assets supporting Ameriprise Bank deposits and ACC certificates as of March 31:
Current report
•In Ameriprise Bank, interest-bearing assets included $21.3 billion of Available-for-Sale securities, $1.8 billion of cash and cash equivalents, and $1.4 billion of other assets, primarily loans. The Ameriprise Bank investment portfolio securities are mostly rated AAA and primarily consist of structured assets, of which 15% were floating rate and sensitive to changes in short-term interest rates as of March 31, 2025. We took action to reduce the floating rate allocation from 26% as of March 31, 2024. The duration of Ameriprise Bank investments was 3.6 years as of March 31, 2025 compared to 3.4 years as of March 31, 2024. In the three months ended March 31, 2025, we purchased $2.6 billion of investments, which was primarily funded from security maturities and prepayments, as well as a portion of the cash and cash equivalents position and additional client deposits in the bank.
Current report
•In ACC, interest-bearing assets include $10.5 billion of Available-for-Sale securities, $0.9 billion of cash and cash equivalents, and $0.1 billion of loans and other assets. The ACC investment portfolio securities are mostly rated AAA and primarily consist of structured assets and government bonds, of which 39% were floating rate and approximately 23% were 6-month Treasury Bills as of March 31, 2025. The duration of ACC investments was 1.3 years as of March 31, 2025 compared to 0.9 years as of March 31, 2024.
Current report
Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $30 million, or 4%, for the three months ended March 31, 2025 compared to the prior year period. This growth reflected the benefit from market appreciation and increased advisor productivity through the cumulative impact of client net inflows and higher transactional revenue, partially offset by lower interest revenue. Pretax adjusted operating margin was 28.5% for the three months ended March 31, 2025 compared to 29.8% for the prior year period.
Current report
•The average certificate reserve balance for ACC was $10.9 billion for the three months ended March 31, 2025 compared to $13.4 billion for the prior year period with the average crediting rate of 3.95% for the three months ended March 31, 2025 compared to 4.64% for the prior year period.
Current report
•The daily average interest-bearing deposit balance for the Ameriprise Bank increased to $22.2 billion for the three months ended March 31, 2025 compared to $21.3 billion for the prior year period with the average interest rate paid on deposits decreasing to 0.31% for the three months ended March 31, 2025 from 0.42% for the prior year period, which included both cash sweep and savings products.
Current report
(4) Assets under advisement are presented on a one-quarter lag.
Current report
(5) Assets under advisement flows are estimated flows based on the period-to-period change in assets less calculated performance based on strategy returns on a one-quarter lag.
Current report
Total segment AUM decreased $23.5 billion, or 4%, during the three months ended March 31, 2025 primarily due to net outflows and market depreciation, partially offset by a favorable foreign exchange impact. Net outflows of $18.3 billion for the three months ended March 31, 2025 were primarily driven by a large institutional client repositioning into passive strategies, outflows from our U.S. real estate business, and higher retail redemptions due to market volatility.
Current report
Management and financial advice fees decreased $2 million for the three months ended March 31, 2025 compared to the prior year period primarily due to the cumulative impact from net outflows and higher performance fees in the prior year period, partially offset by higher average equity markets.
Current report
General and administrative expense decreased $49 million, or 12%, for the three months ended March 31, 2025 compared to the prior year period reflecting the benefits from our initiatives to enhance operational efficiency and effectiveness along with higher performance fee related compensation in the prior year period.
Current report
General and administrative expense decreased $6 million, or 8%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting favorable mark-to-market impacts on share-based compensation in the current period compared to unfavorable impacts in the prior year period along with a lease write-down in the prior year period.
Current report
We are an applicable corporation required to compute the corporate alternative minimum tax (“CAMT”); however, as of March 31, 2025, based on current estimates, we do not expect to be liable for CAMT in 2025. This estimate is based on interpretations and assumptions of available guidance, including proposed regulations, that we have made regarding the CAMT provisions of the Inflation Reduction Act of 2022.
Removed paragraphs (87)
Previous report
In the third quarter, we conducted our annual review of life insurance, annuity and long term care (“LTC”) valuation assumptions relative to current experience and management expectations including modeling changes. These annual assumption updates are collectively referred to as unlocking throughout this document. See our Consolidated and Segment Results of Operations sections for the pretax impacts on our revenues and expenses attributable to unlocking.
Previous report
In the first quarter of 2023, management introduced an adjusted capital measure (“Available Capital for Capital Adequacy”), which management believes best reflects the available capital resources of our core operations and facilitates a meaningful trend analysis. Available Capital for Capital Adequacy adjusts GAAP total equity and excludes accumulated other comprehensive income (“AOCI”); goodwill and intangibles; RiverSource Life Insurance Company’s GAAP equity excluding AOCI; and includes RiverSource Life Insurance Company’s statutory total adjusted capital prepared in conformity with accounting practices prescribed or permitted by the State of Minnesota Department of Commerce; and other adjustments, primarily certain deferred tax balances.
Previous report
The following table reconciles GAAP total equity to Available Capital for Capital Adequacy:
Previous report
Assets Under Management and Administration
Previous report
The following table presents the total pretax impacts on our revenues and expenses attributable to our annual assumption updates, referred to as unlocking, for the three months ended September 30:
Previous report
(1) Includes a $17 million net benefit related to model changes associated with the market impact on indexed universal life and SVA embedded derivatives for the three months ended September 30, 2024, which is excluded from adjusted operating earnings. Refer to Results of Operations by Segment for the impact to pretax adjusted operating earnings attributable to unlocking.
Previous report
The primary driver of the unlocking impact was lowered surrender assumptions on variable annuities with living benefits resulting in an expense for the three months ended September 30, 2024, partially offset by the updated claims incident rates on disability insurance. The primary driver of the unlocking impact was lowered surrender assumptions on variable annuities with living benefits resulting in an expense for the three months ended September 30, 2023.
Previous report
Distribution fees increased $50 million, or 11%, for the three months ended September 30, 2024 compared to the prior year period primarily due to higher transactional activity and market appreciation, partially offset by $26 million of lower fees on off-balance sheet brokerage cash.
Previous report
Net investment income increased $125 million, or 15%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting the following items:
Previous report
•The favorable impact of the trend in rising investment portfolio yields.
Previous report
Distribution expenses increased $242 million, or 19%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting higher market appreciation and higher transactional activity.
Previous report
Interest credited to fixed accounts decreased $21 million, or 15%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting the following items:
Previous report
•A $20 million decrease in expense from other market impacts on indexed universal life (“IUL”) benefits, net of hedges, which was a benefit of $35 million for the three months ended September 30, 2024 compared to a benefit of $15 million for the prior year period. The decrease in expense was primarily due to a decrease in the IUL embedded derivative in the current period, which reflected model changes and lower option costs due to a lower new money rate, offset by less discounting due to lower Treasury rates.
Previous report
•A $3 million increase in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits. The unfavorable impact of the nonperformance credit spread was $5 million for the three months ended September 30, 2024 compared to an unfavorable impact of $2 million for the prior year period.
Previous report
Benefits, claims, losses and settlement expenses increased $310 million, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting a $221 million increase in expense from market impacts on SVA embedded derivative, net of
Previous report
Change in fair value of market risk benefits increased $398 million, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting the following items:
Previous report
•Equity market 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 September 30, 2024 compared to an expense in the prior year period.
Previous report
•Volatility 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 September 30, 2024 compared to an expense in the prior year period.
Previous report
General and administrative expense increased $25 million, or 3%, for the three months ended September 30, 2024 compared to the prior year period primarily due to $17 million of higher severance expense, expenses to accelerate our transition to cloud-based technology, higher compensation accruals related to strong performance and the mark-to-market impacts on share-based compensation, partially offset by our continued focus on operational efficiency and effectiveness and a $20 million accrual for a regulatory matter relating to electronic communication recordkeeping requirements in the prior year period.
Previous report
The following table presents the segment pretax adjusted operating impacts on our revenues and expenses attributable to our annual assumption updates, referred to as unlocking, for the three months ended September 30:
Previous report
Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $97 million, or 13%, for the three months ended September 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 30.1% for the three months ended September 30, 2024 compared to 30.3% for the prior year period.
Previous report
Distribution expenses increased $235 million, or 19%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting market appreciation and higher transactional activity.
Previous report
Total segment AUM increased $30.2 billion, or 5%, during the three months ended September 30, 2024 primarily due to market appreciation and a favorable foreign exchange impact, partially offset by net outflows. Model delivery assets under advisement net inflows were $1.2 billion for the three months ended September 30, 2024 compared to $0.2 billion for the prior year period.
Previous report
Management and financial advice fees increased $43 million, or 6%, for the three months ended September 30, 2024 compared to the prior year period primarily due to higher average equity markets, partially offset by the cumulative impact from net outflows.
Previous report
Distribution fees increased $6 million, or 7%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting market appreciation, partially offset by the cumulative impact from net outflows.
Previous report
Distribution expenses increased $16 million, or 7%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting market appreciation, partially offset by the cumulative impact from net outflows.
Previous report
General and administrative expense decreased $7 million, or 2%, for the three months ended September 30, 2024 compared to the prior year period reflecting the initial benefits from our initiatives to enhance operational efficiency and effectiveness.
Previous report
LTC insurance had a pretax adjusted operating earnings of $9 million for the three months ended September 30, 2024 compared to pretax adjusted operating earnings of $10 million for the prior year period primarily reflecting an unfavorable unlocking impact in the current period, along with a favorable impact in the prior year period, offset by improved claims experience and the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.
Previous report
Consolidated Results of Operations for the Nine Months Ended September 30, 2024 and 2023
Previous report
Overall
Previous report
Pretax income increased $175 million, or 6%, for the nine months ended September 30, 2024 compared to the prior year period.
Previous report
•A favorable impact from the trend in rising investment portfolio yields, along with higher average balances in Ameriprise Bank customer deposits, certificate and SVA products.
Previous 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 $322 million for the nine months ended September 30, 2024 compared to an expense of $137 million for the prior year period.
Previous report
See our Consolidated Results of Operations for the three months ended September 30, 2024 and 2023 for a table and discussion of total pretax impacts on our revenues and expenses attributable to unlocking.
Previous report
Net investment income increased $438 million, or 19%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting:
Previous report
•The favorable impact of growth in Ameriprise Bank customer deposits and SVA products, along with higher average certificate balances.
Previous report
•The favorable impact of the trend in rising investment portfolio yields.
Previous report
Banking and deposit interest expense increased $129 million, or 34%, for the nine months ended September 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 report
Interest credited to fixed accounts decreased $29 million, or 6%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting the following items:
Previous report
•A $39 million decrease in expense from other market impacts on IUL benefits, net of hedges, which was a benefit of $23 million for the nine months ended September 30, 2024 compared to an expense of $16 million for the prior year period. The decrease in expense was primarily due to a decrease in the IUL embedded derivative in the current period, which reflected model changes and more discounting due to higher Treasury rates, partially offset by higher option costs due to a higher option budget.
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Reworded paragraphs (66)
Previous 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 $1.5 trillion in assets under management and administration as of September 30, 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 $1.5 trillion in assets under management, administration and advisement as of March 31, 2025. We offer a broad range of products and services designed to achieve individual and institutional clients’ financial objectives.
Previous wording
While our consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), management believes that adjusted operating earnings measures, which exclude net realized investment gains or losses, net of reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and universal life (“UL”) insurance contracts), net of hedges and the reinsurance accrual; mean reversion related impacts (the impact on variable universal life (“VUL”) products for the difference between assumed and updated separate account investment performance on the reinsurance accrual and additional insurance benefit reserves); 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; income (loss) from
Current wording
While our consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), management believes that adjusted operating earnings measures, which exclude net realized investment gains or losses, net of reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and universal life (“UL”) insurance contracts), net of hedges and the reinsurance accrual; mean reversion related impacts (the impact on variable universal life (“VUL”) products for the difference between assumed and updated separate account investment performance on the reinsurance accrual and additional insurance benefit reserves); 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; income (loss) from discontinued operations; and the impact of consolidating CIEs, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis.
Previous wording
See our segment results of operations discussion below for additional information on how changes in the economic environment have and may continue to impact our results. For further information regarding the impact of the economic environment on our results of operations and financial condition, and potentially material effects, see Part 1 - Item 1A “Risk Factors” of our 2023 10-K.
Current wording
See our segment results of operations discussion below for additional information on how changes in the economic environment have impacted and may continue to impact our results. For further information regarding the impact of the economic environment on our results of operations and financial condition, and potentially material effects, see Part 1 - Item 1A “Risk Factors” of our 2024 10-K.
Previous wording
Assets under administration (“AUA”) include assets for which we provide administrative services such as client assets invested in other companies’ products that we offer outside of our wrap accounts. These assets include those held in clients’ brokerage accounts. We generally record revenues received from administered assets as distribution fees. We do not exercise management discretion over these assets and do not earn a management fee. These assets are not reported on our Consolidated Balance Sheets. AUA also includes certain assets on our Consolidated Balance Sheets for which we do not provide investment management services and do not recognize management fees, such as investments in non-affiliated funds held in the separate accounts of our life insurance subsidiaries.
Current wording
Assets under administration include assets for which we provide administrative services such as client assets invested in other companies’ products that we offer outside of our wrap accounts. These assets include those held in clients’ brokerage accounts. We generally record revenues received from administered assets as distribution fees. We do not exercise management discretion over these assets and do not earn a management fee. These assets are not reported on our Consolidated Balance Sheets. Assets under administration also include certain assets on our Consolidated Balance Sheets for which we do not provide investment management services and do not recognize management fees, such as investments in non-affiliated funds held in the separate accounts of our life insurance subsidiaries.
Previous wording
AUM and AUA do not include assets under advisement, for which we provide advisory services such as model portfolios but do not have full discretionary investment authority.
Current wording
Assets under advisement include assets for which we provide advisory services such as model portfolios but do not have full discretionary investment authority.
Previous wording
The following table presents detail regarding our AUM and AUA:
Current wording
The following table presents detail regarding our Assets Under Management, Administration and Advisement:
Previous wording
Total AUM increased $201.5 billion, or 20%, to $1.2 trillion as of September 30, 2024 compared to $990.4 billion as of September 30, 2023 due to an $124.5 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $84.9 billion increase in Asset Management AUM primarily driven by equity market appreciation, partially offset by net outflows. Total AUA increased $71.8 billion, or 30%, to $314.2 billion as of September 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.
Current wording
Total AUM increased $19.5 billion, or 2%, to $1.1 trillion as of March 31, 2025 compared to $1.1 trillion as of March 31, 2024 due to a $51.0 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $30.7 billion decrease in Asset Management AUM primarily driven by net outflows, partially offset by equity market appreciation. Total Assets Under Administration increased $16.6 billion, or 6%, to $314.1 billion as of March 31, 2025 compared to the prior year period primarily driven by equity market appreciation and an increase in third-party money market funds. Total Assets Under Advisement increased $5.9 billion, or 21%, to $33.7 billion as March 31, 2025 due to market appreciation and net inflows. See our segment results of operations discussion below for additional information on changes in our AUM.
Previous wording
Pretax income decreased $472 million, or 42%, for the three months ended September 30, 2024 compared to the prior year period. The following impacts were significant drivers of the period-over-period change in pretax income:
Current wording
Pretax income decreased $532 million, or 44%, for the three months ended March 31, 2025 compared to the prior year period. The following impacts were significant drivers of the period-over-period change in pretax income:
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 an expense of $402 million for the three months ended September 30, 2024 compared to a benefit of $211 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 an expense of $460 million for the three months ended March 31, 2025 compared to a benefit of $140 million for the prior year period.
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 22% in the three months ended September 30, 2024 compared to the prior year period. The average S&P 500 index was 24% 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 15% in the three months ended March 31, 2025 compared to the prior year period.
Previous wording
Management and financial advice fees increased $286 million, or 13%, for the three months ended September 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.
Current wording
Management and financial advice fees increased $203 million, or 8%, for the three months ended March 31, 2025 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 and higher performance fees in the prior year period.
Previous wording
Distribution fees increased $62 million, or 4%, for the nine months ended September 30, 2024 compared to the prior year period due to market appreciation and strong transactional activity, partially offset by $146 million of lower fees on off-balance sheet brokerage cash.
Current wording
Distribution fees increased $16 million, or 3%, for the three months ended March 31, 2025 compared to the prior year period primarily due to market appreciation and higher transactional activity, partially offset by $14 million of lower fees on off-balance sheet brokerage cash.
Previous wording
•A favorable impact from the trend in rising investment portfolio yields, along with higher balances in Ameriprise Bank, FSB (“Ameriprise Bank”) customer deposits and structured variable annuities (“SVA”) products.
Current wording
Net investment income decreased $33 million, or 4%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting the unfavorable impact of declining investment portfolio yields, partially offset by the favorable impact of growth in Ameriprise Bank, FSB (“Ameriprise Bank”) customer deposits and structured variable annuities (“SVA”) products.
Previous wording
Premiums, policy and contract charges increased $43 million, or 4%, for the nine months ended September 30, 2024 compared to the prior year period primarily due to higher sales of life contingent payout annuities.
Current wording
Premiums, policy and contract charges decreased $30 million, or 8%, for the three months ended March 31, 2025 compared to the prior year period primarily due to lower sales of life contingent payout annuities.
Previous wording
Banking and deposit interest expense increased $12 million, or 8%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting higher average crediting rates on certificates and Ameriprise Bank cash deposits.
Current wording
Banking and deposit interest expense decreased $52 million, or 29%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting lower average crediting rates and lower balances on certificates and lower average crediting rates on Ameriprise Bank cash deposits.
Previous wording
Distribution expenses increased $637 million, or 17%, for the nine months ended September 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.
Current wording
Distribution expenses increased $193 million, or 14%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting higher advisor compensation from higher average wrap account assets and higher transactional activity, as well as investments in recruiting experienced advisors.
Previous wording
hedges in place to offset those risks. This increase was primarily the result of an unfavorable $683 million change in the market impact on SVA embedded derivative and a favorable $464 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 an expense for the three months ended September 30, 2024 compared to a benefit in the prior year period. The increase in expense also reflects the impact of increased volume in SVAs and the impact of higher sales of life contingent payout annuities.
Current wording
Benefits, claims, losses and settlement expenses increased $86 million, or 29%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting a $102 million increase in expense from market impacts on SVA embedded derivative, net of hedging activity. This increase was primarily the result of an unfavorable $1.3 billion change in the market impact on derivatives hedging the SVA embedded derivative and a favorable $1.2 billion change in the market impact on SVA embedded derivative. The increase in expense also reflects the impact of increased volume in SVAs, partially offset by the impact of lower sales of life contingent payout annuities.
Previous wording
•A $401 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 $983 million change in the market impact on variable annuity guaranteed benefits reserves, partially offset by a favorable $595 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 $501 million increase in expense from other market impacts on variable annuity guaranteed benefits, net of hedges. This increase was the result of an unfavorable $1.8 billion change in the market impact on variable annuity guaranteed benefits reserves, partially offset by a favorable $1.3 billion 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
•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 September 30, 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 March 31, 2025 compared to the prior year period.
Previous wording
General and administrative expense increased $45 million, or 64%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting $17 million of higher severance expenses associated with our initiatives to enhance operational efficiency and effectiveness, as well as $22 million of expenses to accelerate our transition to cloud-based technology, higher compensation accruals related to strong performance and the mark-to-market impacts on share-based compensation.
Current wording
General and administrative expense decreased $44 million, or 5%, for the three months ended March 31, 2025 compared to the prior year period primarily due to ongoing benefits from our initiatives to enhance operational efficiency and effectiveness and higher prior year period performance fee related compensation, partially offset by expenses to accelerate our transition to cloud-based technology.
Previous wording
Our effective tax rate was 20.7% for the three months ended September 30, 2024 compared to 21.8% for the prior year period. The decrease in the effective tax rate for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was primarily due to lower pretax income in the current period compared to the prior period and the related impact on tax preferred items, a decrease in unrecognized tax benefits, and a decrease in foreign taxes, partially offset by an increase in state income taxes, net of federal benefit. See Note 16 to our Consolidated Financial Statements for additional discussion on income taxes.
Current wording
Our effective tax rate was 15.1% for the three months ended March 31, 2025 compared to 18.8% for the prior year period. The decrease in the effective tax rate for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily due to lower pretax income in the current period compared to the prior period and the related impact on tax preferred items, an increase in the benefit for incentive compensation, an increase in foreign tax credits, net of addback, partially offset by an increase in state income taxes, net of federal benefit and an increase in unrecognized tax benefits. See Note 16 to our Consolidated Financial Statements for additional discussion on income taxes.
Previous wording
(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 three months ended September 30, 2024 and 2023, which is reflective of our billing cycle.
Current wording
(2) Average advisory wrap account assets 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 three months ended March 31, 2025 and 2024, which is reflective of our billing cycle.
Previous wording
Ending wrap account assets increased $34.1 billion, or 6%, to $569.1 billion during the three months ended September 30, 2024 due to net inflows of $8.0 billion and market appreciation of $26.1 billion. Average advisory wrap account assets increased $86.3 billion, or 19%, compared to the prior year period primarily reflecting market appreciation and net inflows.
Current wording
Ending wrap account assets decreased $1.1 billion to $572.8 billion during the three months ended March 31, 2025 due to market depreciation of $9.8 billion and net inflows of $8.7 billion. Average advisory wrap account assets increased $88.0 billion, or 18%, compared to the prior year period primarily reflecting market appreciation and net inflows.
Previous wording
Ameriprise Bank is continuing its deposit growth trend, with bank deposit balances increasing $0.8 billion from the prior year period to $21.7 billion. The daily average interest-bearing deposit balance increased to $21.5 billion for the three months ended September 30, 2024 compared to $20.9 billion for the prior year period with the average interest rate paid on deposits increasing to 0.46% for the three months ended September 30, 2024 from 0.40% for the prior year period. Profitability at the bank increased compared to the prior year period primarily reflecting growth in deposits. Ameriprise Certificate Company (“ACC”) client deposits decreased $0.6 billion from the prior year period to $12.0 billion. After a period of strong growth during a rising interest rate environment, ACC has experienced net outflows during the three months ended September 30, 2024.
Current wording
Ameriprise Bank is continuing its deposit growth trend, with bank deposit balances increasing 7% from the prior year to $22.7 billion as of March 31, 2025. Ameriprise Certificate Company (“ACC”) client deposits decreased $2.5 billion from the prior year to $10.7 billion. After a period of strong growth during a rising interest rate environment, ACC has experienced net outflows during the past five quarters. Third party cash products increased $6.9 billion to $46.0 billion driven by an increase of money market funds of $9.2 billion, partially offset by a decline in brokered CDs.
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Management and financial advice fees increased $235 million, or 17%, for the three months ended September 30, 2024 compared to the prior year period primarily due to growth in average wrap account assets. Average advisory wrap account assets increased $86.3 billion, or 19%, compared to the prior year period primarily reflecting market appreciation and net inflows.
Current wording
Management and financial advice fees increased $210 million, or 14%, for the three months ended March 31, 2025 compared to the prior year period primarily due to growth in average wrap account assets. Average advisory wrap account assets increased $88.0 billion, or 18%, compared to the prior year period primarily reflecting net inflows and market appreciation.
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Distribution fees increased $62 million, or 11%, for the three months ended September 30, 2024 compared to the prior year period reflecting higher transactional activity and market appreciation, partially offset by $26 million of lower fees on off-balance sheet brokerage cash due to lower off-balance sheet brokerage cash balances and a lower average fee yield.
Current wording
Distribution fees increased $15 million, or 3%, for the three months ended March 31, 2025 compared to the prior year period as non-brokerage cash revenue increased $29 million reflecting higher transactional activity and market appreciation, while brokerage cash revenue decreased $14 million due to lower off-balance sheet brokerage cash balances and a lower average fee yield.
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Net investment income, which excludes net realized investment gains or losses, increased $37 million, or 7%, for the three months ended September 30, 2024 compared to the prior year period primarily due to higher average invested assets due to growth in bank cash deposits and the favorable impact of increasing investment yields on the investment portfolios supporting the bank cash deposits and certificate products.
Current wording
Net investment income, which excludes net realized investment gains or losses, decreased $60 million, or 11%, for the three months ended March 31, 2025 compared to the prior year period primarily due to lower average invested assets supporting certificates and the unfavorable impact of lower investment yields on the investment portfolios supporting the bank cash deposits and certificate products.
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Banking and deposit interest expense increased $129 million, or 34%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting higher average crediting rates and higher average balances on certificates and bank cash deposits.
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Banking and deposit interest expense decreased $52 million, or 29%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting lower average crediting rates and lower balances on certificates and lower average crediting rates on Ameriprise Bank cash deposits.
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Distribution expenses increased $638 million, or 18%, for the nine months ended September 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.
Current wording
Distribution expenses increased $185 million, or 14%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting market appreciation and higher transactional activity, as well as investments in recruiting experienced advisors.
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(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.
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 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), 4 received a 5-star Overall Rating and 42 received a 4-star Overall Rating. Out of 139 Threadneedle funds rated (based on highest-rated share class), 21 received a 5-star Overall Rating and 51 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), 3 received a 5-star Overall Rating and 37 received a 4-star Overall Rating. Out of 136 Threadneedle funds rated (based on highest-rated share class), 15 received a 5-star Overall Rating and 46 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
Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $46 million, or 23%, for the three months ended September 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 wording
Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $35 million, or 17%, for the three months ended March 31, 2025 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.
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 $18 million, or 18%, for the three months ended September 30, 2024 compared to prior year period primarily reflecting higher investment portfolio yields 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 indexed universal life (“IUL”) benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $16 million, or 8%, for the three months ended March 31, 2025 compared to prior year period primarily reflecting higher investment portfolio yields.
Previous wording
Variable annuity account balances increased 17% to $87.7 billion as of September 30, 2024 compared to the prior year period due to market appreciation, partially offset by net outflows of $3.5 billion. Variable annuity sales increased 13% compared to the prior year period primarily reflecting an increase in sales of SVAs. Account values with living benefit riders declined to 51% as of September 30, 2024 compared to 55% 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 decreased 1% to $83.5 billion as of March 31, 2025 compared to the prior year period due to net outflows of $3.9 billion, partially offset by market appreciation. Variable annuity sales decreased 8% compared to the prior year period primarily reflecting a decrease in sales of SVAs, partially offset by an increase in sales in traditional variable annuities without living benefit guarantees. Account values with living benefit riders declined to 49% as of March 31, 2025 compared to 53% 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
Net investment income, which excludes net realized investment gains or losses, increased $66 million, or 31%, for the three months ended September 30, 2024 compared to the prior year period primarily due to higher investment portfolio yields from investment portfolio repositioning and increased SVA balances.
Current wording
Net investment income, which excludes net realized investment gains or losses, increased $53 million, or 22%, for the three months ended March 31, 2025 compared to the prior year period primarily due to higher SVA balances and higher investment portfolio yields from investment portfolio repositioning.
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Premiums, policy and contract charges increased $45 million, or 4%, for the nine months ended September 30, 2024 compared to the prior year period due to higher sales of life contingent payout annuities.
Current wording
Premiums, policy and contract charges decreased $33 million, or 9%, for the three months ended March 31, 2025 compared to the prior year period primarily due to lower sales of life contingent payout annuities.
Previous wording
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 $185 million, or 36%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting the impact of higher sales of life contingent payout annuities and increased volume in SVAs.
Current wording
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, decreased $13 million, or 6%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting lower sales of life contingent payout annuities, partially offset by increased volume in SVAs.
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Change in fair value of market risk benefits, which exclude the market impact on variable annuity guaranteed benefits (net of hedges), increased $31 million, or 6%, for the nine months ended September 30, 2024 compared to the prior year period reflecting market appreciation on contractual fees.
Current wording
Change in fair value of market risk benefits increased $14 million, or 11%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting market appreciation on contractual fees.
Previous 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 $71 million for the three months ended September 30, 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 $8 million for the three months ended March 31, 2025 compared to the prior year period, reflecting lower net investment income.
Previous wording
LTC insurance had pretax adjusted operating earnings of $37 million for the nine months ended September 30, 2024 compared to pretax adjusted operating earnings of $19 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 wording
LTC insurance had pretax adjusted operating earnings of $14 million for the three months ended March 31, 2025 compared to pretax adjusted operating earnings of $16 million for the prior year period primarily reflecting lower investment portfolio yields, partially offset by improved claims experience.
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•Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in an expense for the three months ended March 31, 2025 compared to a benefit in the prior year period.
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We report certain assets and liabilities at fair value; specifically, separate account assets, derivatives, market risk benefits, embedded derivatives, and most investments and cash equivalents. Fair value assumes the exchange of assets or liabilities occurs in orderly transactions and is not the result of a forced liquidation or distressed sale. We include actual market prices, or observable inputs, in our
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discontinued operations; and the impact of consolidating CIEs, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis.
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•The favorable impact of growth in Ameriprise Bank customer deposits and SVA products.
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Distribution expenses increased $14 million, or 12%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting market appreciation and higher sales of SVAs.
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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 $85 million, or 51%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting increased volume in SVAs.
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The following table presents our consolidated results of operations:
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•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 nine months ended September 30, 2024 compared to the prior year period. The average S&P 500 index was 25% higher in the nine months ended September 30, 2024 compared to the prior year period.
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•An unfavorable impact from the cumulative impact of Asset Management net outflows.
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Management and financial advice fees increased $805 million, or 12%, for the nine months ended September 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.
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•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 nine months ended September 30, 2024 compared to the prior year period.
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The following table presents summary financial information by segment:
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The following table presents the changes in wrap account assets and average balances for the nine months ended September 30:
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(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.
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(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 nine months ended September 30, 2024 and 2023, which is reflective of our billing cycle.
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The following table presents the results of operations of our Advice & Wealth Management segment on an adjusted operating basis:
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(1) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.
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The following table presents the changes in global managed assets:
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(1) Amounts represent local currency to US dollar translation for reporting purposes.
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(2) Global Institutional inflows and outflows include net flows from our structured annuity product and Ameriprise Bank.
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(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.
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(4) Legacy insurance partners assets and net flows are included in the rollforwards above.
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The following table presents the results of operations of our Asset Management segment on an adjusted operating basis:
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Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $143 million, or 27%, for the nine months ended September 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.
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The following table presents the results of operations of our Retirement & Protection Solutions segment on an adjusted operating basis:
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The following table presents the results of operations of our Corporate & Other segment on an adjusted operating basis:
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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 $145 million, or 70%, for the nine months ended September 30, 2024 compared to the prior year period.
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The FA business had a pretax adjusted operating loss of $21 million for the nine months ended September 30, 2024 compared to a pretax adjusted operating loss of $22 million for the prior year period.
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and understandings with the SEC and the Minnesota Department of Commerce. The terms of the investment certificates issued by ACC and the provisions of the 1940 Act also require the maintenance by ACC of qualified assets.
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counterparty credit exposure to GLIC is not the full amount of the gross liability that GLIC reinsures, but a much smaller net exposure to GLIC (if any that might exist after taking into account our credit protections). Thus, management believes that our agreement and offsetting non-LTC legacy arrangements with Genworth Financial, Inc. will enable RiverSource Life to recover on all net exposure in all material respects in the event of a rehabilitation or insolvency of GLIC.
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information found on the website is not incorporated by reference into this report or in any other report or document the Company furnishes or files with the SEC.