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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Ameriprise Financial Inc | NYSE:AMP | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
1.65 | 0.40% | 413.44 | 420.64 | 409.21 | 411.79 | 490,533 | 22:30:00 |
Fourth quarter 2015 net income(1) per diluted share was $2.00Operating EPS up 7 percent to $2.47
Full Year 2015 net income(1) per diluted share was $8.48Operating EPS up 9 percent to $9.32
Fourth quarter 2015 return on equity excluding AOCI was 21.4 percentOperating ROE excluding AOCI increased 130 bps to a record high 24.3 percent
Ameriprise Financial, Inc. (NYSE: AMP) today reported fourth quarter 2015 net income(1) of $357 million, or $2.00 per diluted share. Operating earnings were $441 million, with operating earnings per diluted share increasing to $2.47, up 7 percent.
Operating net revenues were flat at $3.0 billion reflecting flat and volatile equity markets and continued low interest rates, which were offset by asset management performance fees.
Operating expenses were $2.4 billion, up 1 percent from a year ago. General and administrative expenses increased 4 percent primarily associated with performance fees and collateralized loan obligation (CLO) liquidation benefits – these items accounted for 3 percent of the 4 percent increase. Overall, expenses remain well controlled.
On a full-year basis, the company generated strong operating results during a period of heightened volatility and continued low interest rates. Compared to 2014, operating net revenues grew 1 percent to $11.7 billion, operating earnings grew 3 percent to $1.7 billion and operating earnings per diluted share increased 9 percent to $9.32.
In the quarter, the company continued to deliver a strong return to shareholders through share repurchases and dividends of $569 million. For the full year, the company returned over $2.1 billion to shareholders, representing 125 percent of operating earnings.
“While the global economic and market environment continued to present headwinds, Ameriprise delivered a solid fourth quarter,” said Jim Cracchiolo, chairman and chief executive officer. “Increased volatility and investor concerns reinforce the importance of the advice and solutions Ameriprise provides to our clients.”
“Our diversified business and financial foundation provide the strength and flexibility to serve our clients, invest through market cycles and return capital to shareholders. In fact, for the fifth consecutive year we returned more than 100 percent of our operating earnings to shareholders. And we delivered a record high operating return on equity of 24.3 percent.”
(1) Net income represents net income from continuing operations attributable to Ameriprise Financial.
Ameriprise Financial, Inc.Fourth Quarter and Full Year Summary
(in millions, except per share amounts, unaudited)
Quarter EndedDecember 31,
Year EndedDecember 31,
2015 2014% Better/(Worse)
2015 2014% Better/(Worse)
Net income from continuing operations attributable to Ameriprise Financial
$ 357 $ 426 (16 )% $ 1,562 $ 1,621 (4 )%Adjustments, net of tax (1)
(see reconciliation on p. 11)
84 14 154 41 Operating earnings (2) $ 441 $ 440 — % $ 1,716 $ 1,662 3 % Earnings Per Diluted Share Income from continuing operations $ 2.00 $ 2.23 (10 )% $ 8.48 $ 8.31 2 %Adjustments, net of tax (1)
(see reconciliation on p. 11)
0.47 0.07 0.84 0.21 Operating earnings (2) $ 2.47 $ 2.30 7 % $ 9.32 $ 8.52 9 % Weighted average common shares outstanding: Basic 176.6 187.9 181.7 191.6 Diluted 178.9 191.2 184.2 195.0(1) After-tax is calculated using the statutory tax rate of 35%.
(2) The company believes the presentation of operating earnings best represents the economics of the business. Operating earnings, after-tax, exclude the consolidation of certain investment entities; net realized investment gains or losses, net of deferred sales inducement costs (“DSIC”) and deferred acquisition costs (“DAC”) amortization, unearned revenue amortization and the reinsurance accrual; integration and restructuring charges; the market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; and income or loss from discontinued operations.
Fourth quarter operating earnings included the following after-tax items:
Quarter EndedDecember 31,
Per Diluted ShareQuarter EndedDecember 31,
(in millions, except per share amounts, unaudited) 2015 2014 2015 2014 Tax items $ 26 $ 32 $ 0.15 $ 0.17 Auto & Home reserve strengthening (1) (37 ) (39 ) (0.21 ) (0.20 ) Life insurance assumption change (1) 18 — 0.10 —Market impact on DAC/DSIC (1)
$ 4 $ 5 $ 0.02 $ 0.03(1) After-tax is calculated using the statutory tax rate of 35%.
Taxes
The fourth quarter 2015 operating effective tax rate was 20.1 percent, reflecting the impact of a non-recurring dividends received deduction benefit recorded in the quarter. The operating effective tax rate in the year ago quarter was 20.3 percent, including different discrete tax items that reduced the tax rate. The 2015 full year operating effective tax rate was 23.9 percent.
Fourth Quarter 2015 Business Highlights
Ameriprise Financial, Inc.Advice & Wealth Management Segment Operating Results
(in millions, unaudited)Quarter EndedDecember 31,
% Better/(Worse)
Year EndedDecember 31,
% Better/(Worse)
2015 2014 2015 2014 Advice & Wealth Management Net revenues $ 1,266 $ 1,249 1 % $ 5,013 $ 4,806 4 % Expenses 1,056 1,037 (2 )% 4,154 4,014 (3 )% Pretax operating earnings $ 210 $ 212 (1 )% $ 859 $ 792 8 % Pretax operating margin 16.6 % 17.0 % 17.1 % 16.5 % Quarter Ended December 31,% Better/(Worse)
2015 2014 Retail client assets (billions) $ 447 $ 444 1 % Wrap net flows (billions) $ 2.1 $ 3.1 (33 )% Operating net revenue per branded advisor (trailing 12 months - thousands) $ 514 $ 496 4 %Advice & Wealth Management pretax operating earnings were $210 million as slower market appreciation and volatility resulted in lower revenue growth, which was offset by continued effective general and administrative expense management. Fourth quarter 2015 pretax operating margin was 16.6 percent, reflecting lower market appreciation and a slowdown in client activity related to market volatility, compared to 17.0 percent a year ago. For the full year, pretax operating margin increased to 17.1 percent from 16.5 percent.
Operating net revenues grew 1 percent to $1.3 billion driven by growth in fee-based accounts from client net inflows partially offset by lower client activity levels given equity market volatility and uncertainty in the environment.
Operating expenses increased 2 percent to $1.1 billion as growth in wrap assets resulted in higher distribution expenses. General and administrative expenses were flat compared to a year ago.
Total retail client assets increased 1 percent to $447 billion compared to the prior year as client net inflows and client acquisition were offset by year-over-year market depreciation. Underlying business fundamentals and metrics remained strong and are consistent with the market environment. Wrap net inflows were $2.1 billion in the quarter, which contributed to a 3 percent increase in wrap balances to $180 billion. Total advisors were 9,789 reflecting strong retention and another successful recruiting quarter, with 82 experienced advisors moving their practices to Ameriprise. The combination of asset growth and client activity drove a 4 percent increase in operating net revenue per advisor on a trailing 12-month basis to $514,000.
Ameriprise Financial, Inc.Asset Management Segment Operating Results
(in millions, unaudited)Quarter EndedDecember 31,
% Better/(Worse)
Year EndedDecember 31,
% Better/(Worse)
2015 2014 2015 2014 Asset Management Net revenues $ 833 $ 830 — % $ 3,254 $ 3,320 (2 )% Expenses 640 632 (1 )% 2,493 2,532 2 % Pretax operating earnings $ 193 $ 198 (3 )% $ 761 $ 788 (3 )% Adjusted net pretax operating margin 36.3 % 40.0 % 38.5 % 39.8 % Quarter Ended December 31,% Better/(Worse)
2015 2014 Total segment AUM(1) (billions) $ 472 $ 506 (7 )% Columbia Management AUM $ 335 $ 361 (7 )% Threadneedle AUM $ 142 $ 148 (4 )% Total segment net flows (billions) $ (0.7 ) $ 5.7 NM Retail net flows $ 6.5 $ 4.9 33 % Institutional net flows $ (6.9 ) $ 0.3 NM Alternative net flows $ (0.3 ) $ 0.5 NM(1) Subadvisory eliminations between Columbia Management and Threadneedle are included in the company’s Fourth Quarter 2015 Statistical Supplement available at ir.ameriprise.com.
NM Not Meaningful — variance of greater than 100%Asset Management pretax operating earnings were $193 million, which included a net benefit from several timing-related items that were more than offset by lower AUM related to weak global markets and net outflows. Results in the quarter included elevated performance fees, CLO liquidation benefits, and higher year-end related expenses that on a net basis benefited earnings by approximately $20 million. Fourth quarter adjusted net pretax operating margin was 36.3 percent compared to 40.0 percent a year ago.
Operating net revenues were flat compared to a year ago as performance fees and CLO liquidation benefits were offset by the impact of lower asset levels. AUM declined 7 percent to $472 billion related to lower market appreciation, net outflows and a negative foreign exchange translation.
Operating expenses were $640 million and included seasonally elevated general and administrative expenses relating to higher performance fees and CLO liquidation, investments in advertising and the timing of certain other expenses. These growth investments were partially offset by lower distribution expenses.
Net outflows were $0.7 billion in the quarter, which included $8.7 billion of reinvested dividends and $6.5 billion of low-fee, former parent related outflows:
Quarter EndedDecember 31,
% Better/(Worse)
Year EndedDecember 31,
% Better/(Worse)
2015 2014 2015 2014 Annuities Net revenues $ 627 $ 649 (3 )% $ 2,541 $ 2,591 (2 )% Expenses 475 490 3 % 1,891 1,958 3 % Pretax operating earnings $ 152 $ 159 (4 )% $ 650 $ 633 3 % Variable annuity pretax operating earnings $ 129 $ 123 5 % $ 544 $ 489 11 % Fixed annuity pretax operating earnings 23 36 (36 )% 106 144 (26 )% Total pretax operating earnings $ 152 $ 159 (4 )% $ 650 $ 633 3 % Quarter Ended December 31,% Better/(Worse)
2015 2014 Items included in operating earnings: Market impact on DAC and DSIC (mean reversion) $ 6 $ 7 (14 )% Impact of variable annuity product changes — 2 NM Total annuities impact $ 6 9 (33 )% Variable annuity ending account balances (billions) $ 74.2 $ 77.0 (4 )% Variable annuity net flows (millions) $ (245 ) $ (406 ) 40 % Fixed annuity ending account balances (billions) $ 10.7 $ 12.1 (12 )% Fixed annuity net flows (millions) $ (296 ) $ (315 ) 6 % NM Not Meaningful — variance of greater than 100%Annuities pretax operating earnings were $152 million primarily reflecting improved variable annuity profitability offset by lower fixed annuity earnings driven by the continued anticipated run-off of a block of fixed annuities.
Variable annuity operating earnings were $129 million compared to $123 million a year ago. Variable annuity cash sales increased 12 percent to $1.3 billion for the quarter, driven by new living benefit riders. Account balances declined 4 percent to $74 billion reflecting net outflows in a closed block of annuities sold through third parties and market depreciation.
Fixed annuity operating earnings declined from $36 million to $23 million as older policies continue to lapse and the interest rate environment which remains challenging for investment yields and limits new sales.
Ameriprise Financial, Inc. Protection Segment Operating Results (in millions, unaudited)Quarter EndedDecember 31,
% Better/(Worse)
Year EndedDecember 31,
% Better/(Worse)
2015 2014 2015 2014 Protection Net revenues $ 608 $ 600 1 % $ 2,384 $ 2,287 4 % Expenses 573 570 (1 )% 2,201 2,041 (8 )% Pretax operating earnings $ 35 $ 30 17 % $ 183 $ 246 (26 )% Quarter Ended December 31,% Better/(Worse)
2015 2014 Items included in operating earnings: Market impact on DAC (mean reversion) $ — $ 1 NM Actuarial model correction — (7 ) NM Auto & Home reserve strengthening (57 ) (60 ) 5 % Life insurance assumption change 28 — NM Total protection impact $ (29 ) $ (66 ) 56 % Life insurance in force (billions) $ 196 $ 196 — % VUL/UL ending account balances (billions) $ 11.2 $ 11.3 (1 )% Auto & Home policies in force (thousands) 957 929 3 % NM Not Meaningful — variance of greater than 100%Protection pretax operating earnings were $35 million compared to $30 million a year ago.
Life and Health insurance earnings included a $28 million life insurance reserve reduction that was a result of an assumption change. This benefit was partially offset by higher life and LTC claims, the impact of continued low interest rates, and the business mix shift from VUL to iUL. VUL/UL cash sales were $91 million, up 7 percent from a year ago, and VUL/UL account balances declined 1 percent.
Auto and Home had an operating loss in the quarter driven by a $57 million reserve increase primarily related to the 2014 and prior accident years for the auto line and a more gradual pace of anticipated improvement in the book. Results reflected increases in both frequency and severity, which is consistent with industry experience.
Performance for the 2015 accident year currently remains in line with expectations, benefiting from enhancements made to underwriting and claims practices.
Ameriprise Financial, Inc. Corporate & Other Segment Operating Results (in millions, unaudited)Quarter EndedDecember 31,
% Better/(Worse)
Year EndedDecember 31,
% Better/(Worse)
2015 2014 2015 2014 Corporate & Other Net revenues $ 15 $ 1 NM $ 3 $ 4 (25 )% Expenses 53 48 (10 )% 202 234 14 % Pretax operating loss $ (38 ) $ (47 ) 19 % $ (199 ) $ (230 ) 13 %NM Not Meaningful — variance of greater than 100%
Corporate & Other pretax operating loss was $38 million for the quarter compared to a $47 million loss a year ago.
At Ameriprise Financial, we have been helping people feel confident about their financial future for more than 120 years. With a nationwide network of 10,000 financial advisors and extensive asset management, advisory and insurance capabilities, we have the strength and expertise to serve the full range of individual and institutional investors’ financial needs. For more information, visit ameriprise.com.
Ameriprise Financial Services, Inc. offers financial planning services, investments, insurance and annuity products. Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA and managed by Columbia Management Investment Advisers, LLC. Threadneedle International Limited is an SEC- and FCA-registered investment adviser affiliate of Columbia Management Investment Advisers, LLC based in the U.K. Auto and home insurance is underwritten by IDS Property Casualty Insurance Company, or in certain states, Ameriprise Insurance Company, both in De Pere, WI. RiverSource insurance and annuity products are issued by RiverSource Life Insurance Company, and in New York only by RiverSource Life Insurance Co. of New York, Albany, New York. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuity products in the state of New York. These companies are all part of Ameriprise Financial, Inc. CA License #0684538. RiverSource Distributors, Inc. (Distributor), Member FINRA.
Forward-Looking Statements
This news release contains forward-looking statements that reflect management’s plans, estimates and beliefs. Actual results could differ materially from those described in these forward-looking statements. Examples of such forward-looking statements include:
The words “believe,” “expect,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “forecast,” “on pace,” “project” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from such statements.
Such factors include, but are not limited to:
Management cautions the reader that the foregoing list of factors is not exhaustive. There may also be other risks that management is unable to predict at this time that may cause actual results to differ materially from those in forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Management undertakes no obligation to update publicly or revise any forward-looking statements. The foregoing list of factors should be read in conjunction with the “Risk Factors” discussion under Part 1, Item 1A of and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2014 available at ir.ameriprise.com and the “Risk Factors” discussion included in Part II, Item 1A and elsewhere in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2015.
The financial results discussed in this news release represent past performance only, which may not be used to predict or project future results. The financial results and values presented in this news release and the below-referenced Statistical Supplement are based upon asset valuations that represent estimates as of the date of this news release and may be revised in the company’s Annual Report on Form 10-K for the year ended December 31, 2015. For information about Ameriprise Financial entities, please refer to the Fourth Quarter 2015 Statistical Supplement available at ir.ameriprise.com and the tables that follow in this news release.
Ameriprise Financial announces financial and other information to investors through the company’s investor relations website at ir.ameriprise.com, as well as SEC filings, press releases, public conference calls and webcasts. Investors and others interested in the company are encouraged to visit the investor relations website from time to time, as information is updated and new information is posted. The website also allows users to sign up for automatic notifications in the event new materials are posted. The information found on the website is not incorporated by reference into this release or in any other report or document the company furnishes or files with the SEC.
Reconciliation Tables
Ameriprise Financial, Inc.Reconciliation Table: Earnings
Quarter EndedDecember 31,
Per Diluted ShareQuarter EndedDecember 31,
(in millions, except per share amounts, unaudited) 2015 2014 2015 2014 Net income attributable to Ameriprise Financial $ 357 $ 425 $ 2.00 $ 2.22 Less: Loss from discontinued operations, net of tax — (1 ) — (0.01 )Net income from continuing operations attributable to Ameriprise Financial
357 426 2.00 2.23Add: Integration/restructuring charges, net of tax(1)
— — — —Add: Market impact on variable annuity guaranteed benefits, net of tax(1)
91 21 0.51 0.11Add: Market impact on indexed universal life benefits, net of tax(1)
— 10 — 0.05Add: Market impact of hedges on investments, net of tax(1)
(7 ) — (0.04 ) —Add: Net realized investment (gains) losses, net of tax(1)
— (17 ) — (0.09 ) Operating earnings $ 441 $ 440 $ 2.47 $ 2.30 Weighted average common shares outstanding: Basic 176.6 187.9 Diluted 178.9 191.2(1) Calculated using the statutory tax rate of 35%.
Ameriprise Financial, Inc.Reconciliation Table: Earnings
Year EndedDecember 31,
Per Diluted ShareYear EndedDecember 31,
(in millions, except per share amounts, unaudited) 2015 2014 2015 2014 Net income attributable to Ameriprise Financial $ 1,562 $ 1,619 $ 8.48 $ 8.30 Less: Loss from discontinued operations, net of tax — (2 ) — (0.01 )Net income from continuing operations attributable to Ameriprise Financial
1,562 1,621 8.48 8.31 Add: Integration/restructuring charges, net of tax(1) 3 — 0.02 —Add: Market impact on variable annuity guaranteed benefits, net of tax(1)
139 61 0.75 0.31 Add: Market impact on indexed universal life benefits, net of tax(1) 1 4 0.01 0.02 Add: Market impact of hedges on investments, net of tax(1) 14 — 0.08 — Add: Net realized investment (gains) losses, net of tax(1) (3 ) (24 ) (0.02 ) (0.12 ) Operating earnings $ 1,716 $ 1,662 $ 9.32 $ 8.52 Weighted average common shares outstanding: Basic 181.7 191.6 Diluted 184.2 195.0(1) Calculated using the statutory tax rate of 35%.
Ameriprise Financial, Inc.Reconciliation Table: Total Net Revenues
Quarter EndedDecember 31,
Year EndedDecember 31,
(in millions, unaudited) 2015 2014 2015 2014 Total net revenues $ 3,103 $ 3,089 $ 12,170 $ 12,268 Less: CIEs revenue 113 108 446 651 Less: Net realized investment gains (losses) (1 ) 27 4 37 Less: Market impact on indexed universal life benefits 2 (11 ) 7 (11 ) Less: Market impact of hedges on investments 11 — (21 ) — Operating total net revenues $ 2,978 $ 2,965 $ 11,734 $ 11,591Ameriprise Financial, Inc.Reconciliation Table: Total Expenses
Quarter EndedDecember 31,
Year EndedDecember 31,
(in millions, unaudited) 2015 2014 2015 2014 Total expenses $ 2,657 $ 2,531 $ 10,028 $ 9,721 Less: CIEs expenses 90 80 321 270 Less: Integration/restructuring charges 1 — 5 — Less: Market impact on variable annuity guaranteed benefits 139 34 214 94 Less: Market impact on indexed universal life benefits 1 4 8 (5 ) Operating expenses $ 2,426 $ 2,413 $ 9,480 $ 9,362Ameriprise Financial, Inc.Reconciliation Table: Pretax Operating Earnings
Quarter EndedDecember 31,
Year EndedDecember 31,
(in millions, unaudited) 2015 2014 2015 2014 Operating total net revenues $ 2,978 $ 2,965 $ 11,734 $ 11,591 Operating expenses 2,426 2,413 9,480 9,362 Pretax operating earnings $ 552 $ 552 $ 2,254 $ 2,229Ameriprise Financial, Inc.Reconciliation Table: General and Administrative Expense
Quarter Ended December 31, (in millions, unaudited) 2015 2014 General and administrative expense $ 794 $ 775 Less: CIEs expenses 8 20 Less: Integration/restructuring charges 1 — Operating general and administrative expense $ 785 $ 755 Ameriprise Financial, Inc. Reconciliation Table: Effective Tax Rate Quarter Ended December 31, 2015 (in millions, unaudited) GAAP Operating Income from continuing operations before income tax provision $ 446 $ 552 Less: Pretax income attributable to noncontrolling interests 23 —Income from continuing operations before income tax provision excluding consolidated investment entities
$ 423 $ 552 Income tax provision from continuing operations $ 66 $ 111 Effective tax rate 14.8 % 20.1 % Effective tax rate excluding noncontrolling interests 15.6 % 20.1 % Ameriprise Financial, Inc. Reconciliation Table: Effective Tax Rate Quarter Ended December 31, 2014 (in millions, unaudited) GAAP Operating Income from continuing operations before income tax provision $ 558 $ 552 Less: Pretax income attributable to noncontrolling interests 28 —Income from continuing operations before income tax provision excluding consolidated investment entities
$ 530 $ 552 Income tax provision from continuing operations $ 104 $ 112 Effective tax rate 18.7 % 20.3 % Effective tax rate excluding noncontrolling interests 19.7 % 20.3 % Ameriprise Financial, Inc. Reconciliation Table: Effective Tax Rate Year Ended December 31, 2015 (in millions, unaudited) GAAP Operating Income from continuing operations before income tax provision $ 2,142 $ 2,254 Less: Pretax income attributable to noncontrolling interests 125 —Income from continuing operations before income tax provision excluding consolidated investment entities
$ 2,017 $ 2,254 Income tax provision from continuing operations $ 455 $ 538 Effective tax rate 21.3 % 23.9 % Effective tax rate excluding noncontrolling interests 22.6 % 23.9 %Ameriprise Financial, Inc.Reconciliation Table: Asset Management Adjusted Net Pretax Operating Margin
Quarter Ended December 31,(in millions, unaudited)
2015 2014 Operating total net revenues $ 833 $ 830 Less: Distribution pass through revenues 211 231 Less: Subadvisory and other pass through revenues 107 99 Adjusted operating revenues $ 515 $ 500 Pretax operating earnings $ 193 $ 198 Less: Operating net investment income 12 6 Add: Amortization of intangibles 6 8 Adjusted operating earnings $ 187 $ 200 Adjusted net pretax operating margin 36.3 % 40.0 % Ameriprise Financial, Inc. Reconciliation Table: Asset Management Adjusted Net Pretax Operating Margin Year Ended December 31, (in millions, unaudited) 2015 2014 Operating total net revenues $ 3,254 $ 3,320 Less: Distribution pass through revenues 862 929 Less: Subadvisory and other pass through revenues 407 400 Adjusted operating revenues $ 1,985 $ 1,991 Pretax operating earnings $ 761 $ 788 Less: Operating net investment income 23 30 Add: Amortization of intangibles 27 34 Adjusted operating earnings $ 765 $ 792 Adjusted net pretax operating margin 38.5 % 39.8 %
Ameriprise Financial, Inc.Reconciliation Table: Return on Equity (ROE) Excluding AccumulatedOther Comprehensive Income “AOCI”
Twelve Months EndedDecember 31,
(in millions, unaudited)
2015 2014 Net income attributable to Ameriprise Financial $ 1,562 $ 1,619 Less: Loss from discontinued operations, net of tax — (2 )Net income from continuing operations attributable to Ameriprise Financial, as reported
1,562 1,621 Less: Adjustments (1) (154 ) (41 ) Operating earnings $ 1,716 $ 1,662 Total Ameriprise Financial, Inc. shareholders’ equity $ 7,808 $ 8,270 Less: Accumulated other comprehensive income, net of tax 516 734 Total Ameriprise Financial, Inc. shareholders’ equity excluding AOCI 7,292 7,536 Less: Equity impacts attributable to the consolidated investment entities 216 311 Operating equity $ 7,076 $ 7,225 Return on equity excluding AOCI 21.4 % 21.5 % Operating return on equity excluding AOCI (2) 24.3 % 23.0 %(1) Adjustments reflect the trailing twelve months’ sum of after-tax net realized investment gains/losses, net of deferred sales inducement costs (“DSIC”) and deferred acquisition costs (“DAC”) amortization, unearned revenue amortization and the reinsurance accrual; market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; and integration/restructuring charges. After-tax is calculated using the statutory tax rate of 35%.
(2) Operating return on equity excluding accumulated other comprehensive income (AOCI) is calculated using the trailing twelve months of earnings excluding the after-tax net realized investment gains/losses, net of deferred sales inducement costs (“DSIC”) and deferred acquisition costs (“DAC”) amortization, unearned revenue amortization and the reinsurance accrual; market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration/restructuring charges; and discontinued operations in the numerator, and Ameriprise Financial shareholders’ equity excluding AOCI and the impact of consolidating investment entities using a five-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory tax rate of 35%.
Ameriprise Financial, Inc.Consolidated GAAP Results
(in millions, unaudited)Quarter Ended December 31,
% Better/(Worse)
2015 2014 Revenues Management and financial advice fees $ 1,499 $ 1,489 1 % Distribution fees 458 484 (5 ) Net investment income 460 409 12 Premiums 374 359 4 Other revenues 321 355 (10 ) Total revenues 3,112 3,096 1 Banking and deposit interest expense 9 7 (29 ) Total net revenues 3,103 3,089 — Expenses Distribution expenses 816 827 1 Interest credited to fixed accounts 165 184 10 Benefits, claims, losses and settlement expenses 714 568 (26 ) Amortization of deferred acquisition costs 52 86 40 Interest and debt expense 116 91 (27 ) General and administrative expense 794 775 (2 ) Total expenses 2,657 2,531 (5 ) Income from continuing operations before income tax provision 446 558 (20 ) Income tax provision 66 104 37 Income from continuing operations 380 454 (16 ) Loss from discontinued operations, net of tax — (1 ) NM Net income 380 453 (16 ) Less: Net income attributable to noncontrolling interests 23 28 (18 ) Net income attributable to Ameriprise Financial $ 357 $ 425 (16 ) NM Not Meaningful — variance of greater than 100% Ameriprise Financial, Inc. Consolidated GAAP Results (in millions, unaudited) Year Ended December 31,% Better/(Worse)
2015 2014 Revenues Management and financial advice fees $ 5,950 $ 5,810 2 % Distribution fees 1,847 1,894 (2 ) Net investment income 1,688 1,741 (3 ) Premiums 1,455 1,385 5 Other revenues 1,260 1,466 (14 ) Total revenues 12,200 12,296 (1 ) Banking and deposit interest expense 30 28 (7 ) Total net revenues 12,170 12,268 (1 ) Expenses Distribution expenses 3,276 3,236 (1 ) Interest credited to fixed accounts 668 713 6 Benefits, claims, losses and settlement expenses 2,261 1,982 (14 ) Amortization of deferred acquisition costs 354 367 4 Interest and debt expense 387 328 (18 ) General and administrative expense 3,082 3,095 — Total expenses 10,028 9,721 (3 ) Income from continuing operations before income tax provision 2,142 2,547 (16 ) Income tax provision 455 545 17 Income from continuing operations 1,687 2,002 (16 ) Loss from discontinued operations, net of tax — (2 ) NM Net income 1,687 2,000 (16 ) Less: Net income attributable to noncontrolling interests 125 381 (67 ) Net income attributable to Ameriprise Financial $ 1,562 $ 1,619 (4 ) NM Not Meaningful — variance of greater than 100%
View source version on businesswire.com: http://www.businesswire.com/news/home/20160127006289/en/
Ameriprise FinancialInvestor Relations:Alicia A. Charity, 612-671-2080alicia.a.charity@ampf.comorChad J. Sanner, 612-671-4676chad.j.sanner@ampf.comorMedia Relations:Paul W. Johnson, 612-671-0625paul.w.johnson@ampf.com
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