Ameriprise Financial, Inc. · NYSE:AMP
Ameriprise Financial — Q2 2024 Earnings Presentation
34 slides from Ameriprise Financial's earnings presentation, Jul 25, 2024
Slide 1: Ameriprise Financial Overview
Ameriprise Financial Overview © 2024 Ameriprise Financial, Inc. All rights reserved.to
Slide 2: Forward-looking statements
Forward-looking statements The forward-looking statements in this presentation reflect management’s expectations about future events, plans and performance. These forward-looking statements and the many assumptions upon which they are based involve risks and uncertainties. A list of factors that cou
Slide 3: A strong, successful company continually innovating to serve clients' needs
Ameriprise Financial – a strong, successful company continually innovating to serve clients’ needs exceptionally well 130-year firm with a clear client Significant market opportunity with focus and a highly differentiated a large and growing need for advice value proposition and solutions in Wealth
Slide 4: Our vision, mission, brand promise, and values
Our vision, mission, brand promise, and values guide our company, resulting in strong client relationships and excellent satisfaction Vision To be the most respected and referred financial services brand What we aspire to be Corporate Mission To help people feel confident about their financial futur
Slide 5: 130 years of commitment to clients and advisors
Ameriprise Financial – 130 years of commitment to clients and advisors Leadership and scale Financial strength and stability Longstanding leader in financial planning and advice Excellent capital position with significant liquidity and excess capital beyond business, regulatory and rating agency req
Slide 6: Diverse business mix provides important benefits over market cycles
Diverse business mix provides important benefits over market cycles with significant leverage points across the firm Diverse business mix performs well across market cycles Strong asset persistency from client relationships built on trust and personalized advice Generate multiple revenue streams and
Slide 7: Integrated model leverages key business linkages
Our integrated model leverages key business linkages to drive growth and consistency across market cycles • AWM is the sole distributor of RiverSource solutions with $198B • $142B of Columbia funds are inforce life insurance and $85B of distributed through AWM annuity AV • $16B of AWM’s discretionar
Slide 8: Capturing the Wealth Management opportunity with complementary capabilities
We will continue to capture the significant Wealth Management opportunity, while maintaining strong complementary capabilities Pretax Adjusted Operating Earnings 18% 38% 2014 31% 2024 $2.6B $4.6B 17% 65% 31% Advice & Wealth Management Asset Management Retirement & Protection Solutions 2024 represent
Slide 9: Strong operating performance through multiple market cycles
Ameriprise consistently delivers strong operating performance through multiple market cycles One Year Performance +90 bps $2.6 billion +10% +15% Increase in Capital Revenue EPS Return on Returned to Growth Growth Equity ex. Shareholders AOCI Five Year Performance +1,260 bps $11.9 billion +7% +16% In
Slide 10: Stronger earnings growth with similar volatility as peers
Ameriprise has delivered stronger earnings growth with similar volatility as peers Pretax Operating Earnings Volatility Operating EPS CAGR 29% Ameriprise 14% Wealth 27% Management 10% Peers Asset 29% Management 7% Peers Retirement & 16% Protection 4% Solutions Peers 25% Peer Composite 8% 36% S&P 500
Slide 11: #1 total shareholder return in S&P 500 Financials since spin-off
Ameriprise is #1 for total shareholder return in the S&P 500 Financials Index since spin-off in 2005 +1,645% #1 BEST PERFORMING stock in the S&P 500 Financials Index +543% +155% Spin-off 2024 2005 AMP S&P 500 Financials S&P Index Data as of June 30, 2024. See appendix for source information. © 2024
Slide 12: Wealth Management: attractive and fast-growing market
Wealth Management: We serve an attractive and fast-growing market, with the client at the heart of everything we do • Our priority is to work with consumers who have a “Responsible Mindset” – they are open to and see the value in working with a financial advisor and receiving advice and recognize th
Slide 13: Distinguished client and advisor experience
We provide a distinguished client and advisor experience that leads to high satisfaction and strong results The Ameriprise Client Experience NET We provide an experience that no other company can: Our advisor network drives approximately 85% of firmwide FLOWS helping clients achieve their financial
Slide 14: Industry-leading integrated technology experience
Our ongoing investments have driven an industry-leading integrated technology experience for clients and advisors Strategically Best-in-class Drives Operating Using Advanced Cybersecurity Protect the Brand Technology Efficiencies Analytics Create best-in-class Leveraging capabilities customer experi
Slide 15: Externally recognized for differentiated value proposition
Ameriprise is externally recognized for our differentiated value proposition For the fifth consecutive year recognized by 4.9/5 Clients rate Ameriprise #1 among wealth managers for providing “An Outstanding in Kiplinger Readers’ Choice in overall satisfaction and Customer Service Experience” for “al
Slide 16: Wealth Management core driver of financial performance
Wealth Management has been a core driver of financial performance for the company, with continued significant growth potential Client Assets Adjusted Operating Pretax Adjusted Operating Pretax Adjusted ($B) Net Revenue Earnings Operating Margin ($B) ($M) CAGR CAGR +1,360 CAGR 15% 9% 8% bps $10.0 30.
Slide 17: Client and advisor value proposition drive best-in-class profitability
Our client and advisor value proposition drive best-in-class profitability across market cycles 35% Best in class 30% 2024 Q2 TTM Margin 25% Peer 3 Peer 4 20% Peer 2 15% Peer 1 10% 5% 5 Year Average PTI Per Client Asset 0% 0.00% 0% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% Data as of June 30, 2024. Peers
Slide 18: Highly differentiated Retirement and Protection business
Our highly differentiated Retirement and Protection business delivers significant value for Ameriprise clients, advisors, and shareholders Top 5 VUL provider $198B Life Insurance Strong returns with a inforce and $84.5B in Top 10 VA provider lower risk profile VA Account Value 100% affiliated Strate
Slide 19: Retirement & Protection: high quality business with attractive risk-return
Retirement & Protection: High quality business with attractive risk-return profile generates distinguished results • High-quality book of business built over many years • Asset accumulation and protection products are long-term client solutions offered as part of a financial plan • Focused on a sing
Slide 20: Columbia Threadneedle has a solid foundation to build from
Amidst backdrop of overall challenging industry conditions, Columbia Threadneedle has a solid foundation to build from • $642B in Assets Under Management • Top 15 long-term mutual funds in the U.S. • Top 10 retail ranking in the UK • Consistent track record of strong investment performance across as
Slide 21: Columbia Threadneedle scaled global player with competitive margins
Columbia Threadneedle is a scaled global player that is diversified across geographies, strategies and clients, and delivers competitive margins Assets Under Management By Region By Asset Class By Client Type Adjusted ($B) ($B) ($B) Margin $642 $642 $642 $42 $33 31-35% $295 35.1% $506 $210 $506 $506
Slide 22: Differentiated and consistent capital return to shareholders
Strong financial performance across our businesses results in a differentiated and consistent capital return to shareholders Returned $22 billion to shareholders over the past 10 years, ~90% free cash flow generation which was ~90% of operating earnings – 90th percentile among S&P 500 Financials $1.
Slide 23: Maintain strong culture and reputation as trusted partner
Maintain our strong culture and excellent reputation as a trusted partner with our clients, our advisors, our vendors, our regulators, and our employees Deliver compelling and differentiated value propositions in each of our businesses to meet and exceed client needs, while continuing our mix shift
Slide 24: Appendix
Appendix © 2024 Ameriprise Financial, Inc. All rights reserved. 24
Slide 25: Disclosures
Disclosures Slide 5: 31st-largest global asset manager -- Pensions & Investments / Thinking Ahead Institution World 500: World’s largest money managers - June 12, 2023 issue. Data as of Dec. 31, 2022. $42.4B market capitalization – S&P CapIQ. #1 in total shareholder return within the S&P 500 Financi
Slide 26: Disclosures
Disclosures Slide 15: Clients rate Ameriprise 4.9 out of 5 in “always putting my interests first” -- Ameriprise created the Client Experience Survey to give clients an opportunity to rate their satisfaction with a financial advisor or practice using a scale of 1 to 5. Each client has an opportunity
Slide 27: Disclosures
Disclosures Slide 18: Top 5 VUL insurance provider – LIMRA ANNUALIZED=Planned Recurring + 10% Single Premium – Q1 2024 Top 10 VA provider – Secure Retirement Industry Participant Report – Q1 2024 Slide 20: Top 15 long-term mutual funds in the U.S. -- ICI Complex Assets report, through Q1 2024. Top 1
Slide 28: Reconciliation Tables
Reconciliation Tables Mix Shift ($ in millions) Full Year TTM (1) 2014 2024(2) Advice & Wealth Management pretax adjusted operating earnings $ 792 $ 3,011 Less: Unlocking - - Pretax adjusted operating earnings excluding unlocking $ 792 $ 3,011 Asset Management pretax adjusted operating earnings $ 78
Slide 29: Reconciliation Tables
Reconciliation Tables Adjusted operating earnings per diluted share Trailing Twelve Months ending Per Diluted Share Trailing Twelve June 30, Months ending June 30, (in millions, except per share amounts, unaudited) 2024 2023 CAGR 2024 2023 CAGR Total net revenues $16,283 $14,765 Adjustments: Net rea
Slide 30: Reconciliation Tables
Reconciliation Tables Adjusted operating earnings per diluted share Trailing Twelve Months ending Per Diluted Share Trailing June 30, Twelve Months ending June (in millions, except per share amounts, unaudited) 2024 2019 CAGR 2024 2019 CAGR Total net revenues $16,283 $12,834 Adjustments: (3) Net rea
Slide 31: Reconciliation Tables
Reconciliation Tables Adjusted operating return on equity ($ in millions) Twelve Months Ended June 30, 2024 2023 2019 Net income $ 3,068 $ 3,017 $ 1,929 Less: Adjustments (1) (198) (143) (229) Adjusted operating earnings $ 3,266 $ 3,160 $ 2,158 Less: Unlocking (2) (78) 107 (46) Adjusted operating ea
Slide 32: Reconciliation Tables
Reconciliation Tables Adjusted operating earnings per diluted share TTM Full Year Per Diluted Share (1) (2) (in millions, except per share amounts, unaudited) 2024 2014 CAGR 2024(1) 2014(2) CAGR Total net revenues $16,283 $12,268 Adjustments: Net realized investment gains (losses)(3) (41) 37 Market
Slide 33: Reconciliation Tables
Reconciliation Tables Advice & Wealth Management net pretax adjusted operating margin ($ in millions) Full Year TTM (1) 2014 2024 Adjusted operating total net revenues $ 4,806 $ 10,014 Pretax adjusted operating earnings $ 792 $ 3,011 Pretax adjusted operating margin 16.5% 30.1% (1) 2024 Represents t
Slide 34: Reconciliation Tables
Reconciliation Tables Asset Management net pretax adjusted operating margin ($ in millions) TTM (1) 2024 Adjusted operating total net revenues $ 3,374 Less: Distribution pass through revenues 750 Less: Subadvisory and other pass through revenues 390 Net adjusted operating revenues $ 2,234 Pretax adj