Ameriprise Financial, Inc. · NYSE:AMP
Ameriprise Financial — Q3 2024 Earnings Presentation
23 slides from Ameriprise Financial's earnings presentation, Oct 24, 2024
Slide 1: Ameriprise Financial Third Quarter 2024 Conference Call
Ameriprise Financial Third Quarter 2024 Conference Call October 24, 2024 © 2024 Ameriprise Financial, Inc. All rights reserved.
Slide 2: Forward-looking statements
Forward-looking statements Some of the statements made in our October 23, 2024 earnings release and/or in this October 24, 2024 presentation constitute forward-looking statements. These statements reflect management's estimates, plans, beliefs and expectations, and speak only as of October 24, 2024.
Slide 3: Consolidated Third Quarter 2024 Results
Consolidated Third Quarter 2024 Results Quarter-Ended September 30, Year-To-Date September 30, GAAP 2024 2023 Better/(Worse) 2024 2023 Better/(Worse) Net Revenues ($M) $4,397 $3,925 12% $12,763 $11,543 11% Expenses ($M) $3,752 $2,808 (34)% $9,848 $8,803 (12)% Net Income ($M) $511 $872 (41)% $2,330 $
Slide 4: Q3 2024 Business & Financial Results
Q3 2024 Business & Financial Results Walter Berman Chief Financial Officer © 2024 Ameriprise Financial, Inc. All rights reserved. 4
Slide 5: Strong EPS growth of 17% demonstrates the strength and leverage with our business model
Strong EPS growth of 17% demonstrates the (1) strength and leverage with our business model AUM/A Adjusted Operating • Solid operating fundamentals across our business supporting strong (1) $ in trillions Earnings Per Diluted Share balance sheet fundamentals – AUM/A increased 22% to $1.5 trillion 22
Slide 6: Our integrated model leverages key business linkages to drive growth and consistency across market cycles
Our integrated model leverages key business linkages to drive growth and consistency across market cycles • AWM is the sole distributor of • $146B of Columbia funds are RiverSource solutions with $198B distributed through AWM inforce life insurance and $88B of • $17B of AWM’s discretionary annuity A
Slide 7: Wealth Management delivered strong 30% margin
Wealth Management delivered strong 30% margin Adjusted Operating Pretax Adjusted • Total client assets increased 26% to $1.0 trillion from strong flows and market appreciation Total Net Revenue Operating Earnings $ in millions $ in millions • Revenue increased 14% to $2.7 billion with strong core we
Slide 8: Asset Management delivered strong financial results
Asset Management delivered strong financial results Adjusted Operating Pretax Adjusted • Assets Under Management increased 14% to Total Net Revenue Operating Earnings $672 billion from market appreciation $ in millions $ in millions • Net outflows were $2.4 billion across AUM and AUA, 7% $882 which
Slide 9: Retirement & Protection Solutions: consistent earnings and free cash flow generation
Retirement & Protection Solutions: consistent earnings and free cash flow generation Pretax Adjusted • Strong pretax adjusted operating earnings excluding unlocking were Operating Earnings $603 million year-to-date $ in millions – In the quarter, earnings increased 2% reflecting higher markets and i
Slide 10: Created significant shareholder value through differentiated capital return
Created significant shareholder value through differentiated capital return • Strong balance sheet fundamentals and capital Returned ~80% of Earnings to Shareholders management Over Trailing 12 Months Through 9-30-24 – Holding company available liquidity of $2.6 billion ($ in billions) – Strong exce
Slide 11: Ameriprise continues to outperform financial targets
Ameriprise continues to outperform financial targets One Year Performance +110 bps $2.6 billion +10% +14% Increase in Capital Revenue EPS Return on Returned to Growth(1) Growth(1) Equity, ex. Shareholders AOCI(1) Five Year Performance +1,290 bps $11.9 billion +7% +16% Increase in Capital Revenue EPS
Slide 12: Long term care block: good value and will be retained
Long term care block: good value and will be retained • We have completed the analysis of LTC risk transfer, we have concluded that retaining the LTC business is in the best interest of shareholders from a risk-return standpoint – LTC risk transfer is still not a mature market and counterparties tre
Slide 13: Appendix: Long Term Care Update
Appendix: Long Term Care Update © 2024 Ameriprise Financial, Inc. All rights reserved. 13
Slide 14: Mature LTC block: last policy sold in 2002, average age 82
Mature LTC block: last policy sold in 2002, average age 82 • We have a high-quality, mature closed block of business sold Over 70% reduction in policy count through our advisor network to our Wealth Management clients with >75% terminating without claim • 90% of policies have credible experience for
Slide 15: Reconciliation Tables
Reconciliation Tables © 2024 Ameriprise Financial, Inc. All rights reserved. 15
Slide 16: Reconciliation tables
Reconciliation tables Adjusted Operating Earnings Per Diluted Share Per Diluted Share Quarter Ended September Quarter Ended 30, September 30, % Better/ % Better/ (in millions, except per share amounts, unaudited) 2024 2023 (Worse) 2024 2023 (Worse) Net income $ 511 $ 872 (41)% $ 5.00 $ 8.14 (39)% Ad
Slide 17: Reconciliation tables
Reconciliation tables Adjusted Operating Earnings Per Diluted Share Per Diluted Share Year-to-date Year-to-date September 30, September 30, % Better/ % Better/ (in millions, except per share amounts, unaudited) 2024 2023 (Worse) 2024 2023 (Worse) Net income $ 2,330 $ 2,179 7% $ 22.53 $ 20.08 12% Adj
Slide 18: Reconciliation tables
Reconciliation tables Pretax Adjusted Operating Earnings Quarter Ended September 30, % Better/ (in millions, unaudited) 2024 2023 (Worse) Total net revenues $ 4,397 $ 3,925 12% Adjustments: Net realized investment gains (losses) (6) (38) Market impact on non-traditional long-duration products 5 3 CI
Slide 19: Reconciliation tables
Reconciliation tables Pretax Adjusted Operating Earnings Year-to-date September 30, % Better/ (in millions, unaudited) 2024 2023 (Worse) Total net revenues $ 12,763 $ 11,543 11% Adjustments: Net realized investment gains (losses) (9) (32) Market impact on non-traditional long-duration products 6 4 C
Slide 20: Adjusted Operating Earnings Per Diluted Share
Reconciliation tables Adjusted Operating Earnings Per Diluted Share Trailing Twelve Months ending Per Diluted Share Trailing September 30, Twelve Months September 30, (in millions, except per share amounts, unaudited) 2024 2023 CAGR 2024 2023 CAGR Total net revenues $ 16,755 $ 15,206 Adjustments: Ne
Slide 21: Adjusted Operating Earnings Per Diluted Share
Reconciliation tables Adjusted Operating Earnings Per Diluted Share Trailing Twelve Months ending Per Diluted Share Trailing September 30, Twelve Months September 30, (in millions, except per share amounts, unaudited) 2024 2019 CAGR 2024 2019 CAGR Total net revenues $ 16,755 $ 12,859 Adjustments: Ne
Slide 22: Reconciliation tables
Reconciliation tables Return on Equity (ROE) Excluding Accumulated Other Comprehensive Income “AOCI” Twelve Months Ended September 30, (in millions, unaudited) 2024 2023 2019 Net income $ 2,707 $ 2,828 $ 1,969 Less: Adjustments (1) (642) (254) (214) Adjusted operating earnings 3,349 3,082 2,183 Less
Slide 23: Reconciliation tables
Reconciliation tables Advice & Wealth Management General and Administrative Expense Year-to-date Quarter Ended September 30, September 30, % Better/ % Better/ (in millions, unaudited) 2024 2023 (Worse) 2024 2023 (Worse) AWM general and administrative expense $ 419 $ 419 —% $ 1,248 $ 1,221 (2)% Less: