Ameriprise Financial, Inc. · NYSE:AMP
Ameriprise Financial — Q1 2021 Earnings Presentation
21 slides from Ameriprise Financial's earnings presentation, Apr 27, 2021
Slide 1: First Quarter 2021 Conference Call
Ameriprise Financial First Quarter 2021 Conference Call April 27, 2021 © 2021 Ameriprise Financial, Inc. All rights reserved.
Slide 2: Forward-looking statements
Forward-looking statements Some of the statements made in our April 26, 2021 earnings release and/or in this April 27, 2021 presentation constitute forward- looking statements. These statements reflect management's estimates, plans, beliefs and expectations, and speak only as of April 27, 2021. Thes
Slide 3: Consolidated first quarter results
Consolidated first quarter results GAAP Q1 2021 Q1 2020 Over/(Under) Net Revenues ($M) $3,350 $3,001 12% Expenses ($M) $2,857 $650 NM Net Income ($M) $437 $2,036 (79%) Diluted EPS $3.58 $15.88 (77%) ROE, ex. AOCI (1) (1.1%) 59.5% NM Adjusted Operating Q1 2021 Q1 2020(2) Over/(Under) Net Revenues ($M
Slide 4: Q1 2021 Business & Financial Results
Q1 2021 Business & Financial Results Walter Berman Chief Financial Officer © 2021 Ameriprise Financial, Inc. All rights reserved. 4
Slide 5: Strong quarterly performance driven by execution of strategic priorities
Strong quarterly performance driven by execution of strategic priorities • Strong performance in Advice & Wealth Management and Asset Management businesses were driven by continued organic growth and disciplined expense management • Announced the strategic acquisition of BMO’s EMEA Asset Management
Slide 6: Strong underlying business performance with adjusted operating EPS up 27%
Strong underlying business performance with adjusted operating EPS up 27% (1) Adjusted Operating Adjusted Operating • Revenue grew 13%(2) reflecting excellent underlying Total Net Revenue EPS performance and activity levels in AWM and AM $ in millions $3,254 • AWM and AM adjusted pretax operating ea
Slide 7: Advice & Wealth delivered continued excellent organic growth across all measures
Advice & Wealth delivered continued excellent organic growth across all measures Total Client Assets Total Client Flows Interest Rate Wrap Net Flows $ in billions $ in billions Impact $ in billions $9.3 $10.4 $762 21% 55% 36% $7.7 $560 $6.7 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 © 2021 Amer
Slide 8: AWM profits increased 30% excluding interest rate impacts
AWM profits increased 30% excluding interest rate impacts Adjusted Operating Pretax Adjusted • Underlying revenue growth of 16% year-over-year and 6% sequentially driven by: Total Net Revenues(1) Operating Earnings(1) $ in millions $ in millions – Strong client and wrap flows – 12% increase in trans
Slide 9: Asset Management pretax earnings up 45%
Asset Management pretax earnings up 45% Adjusted Operating Pretax Adjusted • Strong investment performance is the engine behind Total Net Revenues Operating Earnings improvement in net inflows of $7.3 billion $ in millions $ in millions • Significant leverage driven by inflows and markets $228 $828
Slide 10: Retirement & Protection Solutions delivering consistent financial results
Retirement & Protection Solutions delivering consistent financial results and prudent risk management Pretax Adjusted • Continued sales mix shift to lower risk and more profitable Operating Earnings products $ in millions – 64% of retirement product sales without living benefits – Highly accretive V
Slide 11: Corporate & Other expense well controlled, elevated LTC earnings
Corporate & Other expense well controlled, elevated LTC earnings from COVID-19 • Corporate & Other pretax adjusted operating loss improved substantially to $21 million with continued strong expense Corporate & Other discipline Pretax Adjusted Operating Earnings $ in millions • Current year results i
Slide 12: Strong balance sheet and free cash flow support 90% capital return target
Strong balance sheet and free cash flow generation support continued 90% capital return target Capital Returned to Shareholders • Strong balance sheet fundamentals $ in millions – $2.3 billion of parent company available liquidity $126 – Free cash flow generation of ~90% $126 $128 $129 – $2.0 billio
Slide 13: Reconciliation tables
Reconciliation tables Adjusted operating net revenues ($ in millions) Q1 Q1 % Over/ 2020 2021 (Under) Total net revenues $ 3,001 $ 3,350 12% Less: Net realized investment gains (losses) (20) 57 Less: Market impact on non-traditional long-duration products 55 5 Less: Mean Reversion related impacts (1
Slide 14: Reconciliation tables
Reconciliation tables Adjusted operating earnings per diluted share ($ in millions, except per share amounts) Per Diluted Share Q1 Q1 % Over/ Q1 Q1 % Over/ 2020 2021 (Under) 2020 2021 (Under) Net income $ 2,036 $ 437 (79)% $ 15.88 $ 3.58 (77)% (1) Less: Net realized investment (losses) gains (20) 55
Slide 15: Reconciliation tables
Reconciliation tables Adjusted operating return on equity ($ in millions) Twelve Months Ended Twelve Months Ended March 31, March 31, 2020 2021 Net income $ 3,534 $ (65) (1) Less: Adjustments 1,175 (1,804) Adjusted operating earnings $ 2,359 $ 1,739 Total Ameriprise Financial, Inc. shareholders' equ
Slide 16: Reconciliation tables
Reconciliation tables Advice & Wealth Management adjusted operating total net revenues ($ in millions) Q1 Q1 % Over/ 2020 2021 (Under) AWM Net revenues $ 1,695 $ 1,879 11% Less: short-term interest rate impacts 78 - AWM Net revenues excluding short-term interest rate impact $ 1,617 $ 1,879 16% Advic
Slide 17: Reconciliation tables
Reconciliation tables AWM & AM adjusted operating total net revenues ($ in millions) Q1 Q1 % Over/ 2020 2021 (Under) AWM & AM Net revenues $ 2,381 $ 2,707 14% Less: short-term interest rate impacts 78 - AWM & AM Net revenues excluding short-term interest rate impact $ 2,303 $ 2,707 18% AWM & AM pret
Slide 18: Reconciliation tables
Reconciliation tables Adjusted operating general and administrative expense ($ in millions) Q1 Q1 % Over/ 2020 2021 (Under) General and administrative expense $ 753 $ 823 (9)% Less: CIEs expense 1 19 Less: Integration/restructuring charges 1 - Adjusted operating general and administrative expense $
Slide 19: Reconciliation tables
Reconciliation tables Pretax operating margin ($ in millions) Q1 Q1 2020 2021 Total net revenues $ 3,001 $ 3,350 Less: Net realized investment gains (losses) (20) 57 Less: Market impact on non-traditional long-duration products 55 5 Less: Mean reversion related impacts (1) - Less market impact of he
Slide 20: Reconciliation tables
Reconciliation tables Advice & Wealth Management adjusted revenue per advisor 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Total Net Revenue $ 1,653 $ 1,682 $ 1,710 $ 1,695 $ 1,537 $ 1,667 $ 1,776 $ 1,879 Interest Revenue $ (122) $ (116) $ (92) $ (78) $ - $ - $ - $ - Advisor Count
Slide 21: Reconciliation tables
Reconciliation tables Asset Management net pretax adjusted operating margin ($ in millions) Q1 Q1 2020 2021 Adjusted operating total net revenues $ 686 $ 828 Less: Distribution pass through revenues 186 217 Less: Subadvisory and other pass through revenues 78 87 Net adjusted operating revenues $ 422