Ameriprise Financial, Inc. · NYSE:AMP
Ameriprise Financial — Q4 2020 Earnings Presentation
50 slides from Ameriprise Financial's earnings presentation, Jan 27, 2021
Slide 1: Fourth Quarter 2020 Statistical Supplement Package
(unaudited) Fourth Quarter 2020 Statistical Supplement Package 1 of 50
Slide 2: Table of Contents
Ameriprise Financial, Inc. Page Ameriprise Financial, Inc. Statistical Supplement Presentation............................................................................................................ 4 Consolidated GAAP Income Statements............................................................
Slide 3: Consolidated Results
(unaudited) Fourth Quarter 2020 Statistical Supplement Package Consolidated Results 3 of 50
Slide 4: Statistical Supplement Presentation
Adjusted operating earnings is the measure of segment profit or loss management uses to evaluate segment performance. Adjusted operating earnings should not be viewed as a substitute for GAAP income from continuing operations before income tax provision. Management believes the presentation of segme
Slide 5: Consolidated GAAP Income Statements
Ameriprise Financial, Inc. Consolidated GAAP Income Statements Fourth Quarter 2020 Prior Year Comparisons (in millions, except per share amounts, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff.
Slide 6: Consolidated Adjusted Operating Results and Highlights
Ameriprise Financial, Inc. Consolidated Adjusted Operating Results and Highlights Fourth Quarter 2020 Prior Year Comparisons (in millions except per share amounts, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff
Slide 7: Consolidated Adjusted Operating Results and Highlights
Ameriprise Financial, Inc. Consolidated Adjusted Operating Results and Highlights Fourth Quarter 2020 Prior Year Comparisons (in millions except per share amounts, headcount and where noted, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 202
Slide 8: Common Share and Capital Summary
Ameriprise Financial, Inc. Common Share and Capital Summary Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Comm
Slide 9: Segment Results
Statistical Supplement Package (unaudited) Fourth Quarter 2020 Segment Results 9 of 50
Slide 10: Segment Summary
Ameriprise Financial, Inc. Segment Summary Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Segment Summary Advic
Slide 11: Advice & Wealth Management Segment
Statistical Supplement Package Advice & Wealth Management Segment (unaudited) Fourth Quarter 2020 11 of 50
Slide 12: Advice & Wealth Management Segment
Ameriprise Financial, Inc. Advice & Wealth Management Segment Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Revenues Manage
Slide 13: Advice & Wealth Management Segment Metrics
Ameriprise Financial, Inc. Advice & Wealth Management Segment Fourth Quarter 2020 Prior Year Comparisons (in millions, except headcount and where noted, unaudited) Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Prod
Slide 14: Asset Management Segment
Statistical Supplement Package Asset Management Segment (unaudited) Fourth Quarter 2020 14 of 50
Slide 15: Asset Management Segment
Ameriprise Financial, Inc. Asset Management Segment Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Asset Management Segment
Slide 16: Asset Management Segment Metrics
Ameriprise Financial, Inc. Asset Management Segment Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Year-to-Date Total Manage
Slide 17: Global Asset Management Products
Ameriprise Financial, Inc. Asset Management Segment Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Managed Asse
Slide 18: Asset Management Segment - Columbia
Ameriprise Financial, Inc. Asset Management Segment - Columbia Fourth Quarter 2020 Mutual Fund Rankings in top 2 Lipper Quartiles 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 Domestic Equity Equal weighted 1 year 59 % 53 % 65 % 71 % 68 % 3 year 55 % 50 % 56 % 61 % 61 % 5 year 48 % 58 % 58
Slide 19: Asset Management Segment - Threadneedle
Ameriprise Financial, Inc. Asset Management Segment - Threadneedle Fourth Quarter 2020 Retail Fund Rankings in Top 2 Morningstar and IA Quartiles or Above Index Benchmark 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 Equity Equal weighted 1 year 87 % 79 % 80 % 78 % 80 % 3 year 77 % 71 % 71
Slide 20: Retirement & Protection Solutions Segment
Statistical Supplement Package Retirement & Protection Solutions Segment (unaudited) Fourth Quarter 2020 20 of 50
Slide 21: Retirement & Protection Solutions Segment
Ameriprise Financial, Inc. Retirement & Protection Solutions Segment Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Dif
Slide 22: Retirement & Protection Solutions Segment
Ameriprise Financial, Inc. Retirement & Protection Solutions Segment Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Variable
Slide 23: Retirement & Protection Solutions Segment
Ameriprise Financial, Inc. Retirement & Protection Solutions Segment Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Year-to-
Slide 24: Corporate & Other Segment
Corporate & Other Segment Statistical Supplement Package (unaudited) Fourth Quarter 2020 24 of 50
Slide 25: Corporate & Other Segment
Ameriprise Financial, Inc. Corporate & Other Segment Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Product Inf
Slide 26: Eliminations
Ameriprise Financial, Inc. Eliminations (1) Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Eliminations Adjuste
Slide 27: Balance Sheet and Ratings Information
Statistical Supplement Package Balance Sheet and Ratings Information (unaudited) Fourth Quarter 2020 27 of 50
Slide 28: Consolidated Balance Sheets
Ameriprise Financial, Inc. Consolidated Balance Sheets Fourth Quarter 2020 (in millions, unaudited) December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Assets Cash and cash equivalents 3,709$ 8,730$ 7,654$ 7,441$ 6,751$ Cash of consolidated investment entities 118 99
Slide 29: Capital and Ratings Information
Ameriprise Financial, Inc. Capital and Ratings Information Fourth Quarter 2020 (in millions unless otherwise noted, unaudited) December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Long-term Debt Summary Senior notes (1) 3,050$ 2,300$ 2,800$ 2,800$ 2,800$ Finance Lease
Slide 30: Financial Investments
Ameriprise Financial, Inc. Ameriprise Financial Investments (1) Fourth Quarter 2020 (in millions unless otherwise noted, unaudited) December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Cash and cash equivalents 3,709$ 8,730$ 7,654$ 7,441$ 6,751$ Investments - Ending Ba
Slide 31: Non-GAAP Financial Information
Non-GAAP Financial Information These non-GAAP measures include: • Adjusted operating earnings; • Adjusted operating earnings per diluted share; • Adjusted operating effective tax rate; • Adjusted operating return on equity excluding AOCI; • Adjusted operating total net revenues; • Basic adjusted ope
Slide 32: Glossary of Selected Terminology - Segments
Ameriprise Financial, Inc. Glossary of Selected Terminology - Segments Advice & Wealth Management - This segment provides financial planning and advice, as well as full service brokerage services, primarily to retail clients through our advisors. These services are centered on long-term, personal re
Slide 33: Glossary of Selected Terminology
Ameriprise Financial, Inc. Glossary of Selected Terminology Adjusted Operating Earnings - Net income attributable to Ameriprise Financial excluding the impact of net realized investment gains or losses, net of the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance a
Slide 34: Glossary of Selected Terminology
Ameriprise Financial, Inc. Glossary of Selected Terminology Market Impact of Hedges on Investments - The market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments. Market impact on non-traditional long-duration products - The impact of changes in f
Slide 35: Exhibit A Disclosed Items
Exhibit A Statistical Supplement Package Disclosed Items (unaudited) Fourth Quarter 2020 35 of 50
Slide 36: Disclosed Items Qtr 2020
Ameriprise Financial, Inc. Disclosed Items 4 Qtr 2020 Excluded from Adjusted Operating Earnings Advice & Wealth Management Market Impact on Market Impact on Mean Reversion Non-traditional Non-traditional Securities Securities Related Long-duration Securities Long-duration (in millions, unaudited) Ga
Slide 37: Disclosed Items Qtr 2020
Ameriprise Financial, Inc. Disclosed Items 3 Qtr 2020 Excluded from Adjusted Operating Earnings Advice & Wealth Management Market Impact on Mean Reversion Non-traditional Integration/ Securities Securities Related Long-duration Securities Restructuring (in millions, unaudited) Gains/(Losses) (1) Gai
Slide 38: Disclosed Items Qtr 2020
Ameriprise Financial, Inc. Disclosed Items 2 Qtr 2020 Excluded from Adjusted Operating Earnings Advice & Wealth Management Asset Management Market Impact on Market Impact on Mean Reversion Non-traditional Non-traditional Integration/ Securities Securities Related Long-duration Securities Securities
Slide 39: Disclosed Items Qtr 2020
Ameriprise Financial, Inc. Disclosed Items 1 Qtr 2020 Excluded from Adjusted Operating Earnings Advice & Wealth Management Asset Management Market Impact on Market Impact on Mean Reversion Non-traditional Non-traditional Securities Securities Related Long-duration Securities Long-duration Securities
Slide 40: Disclosed Items Qtr 2019
Ameriprise Financial, Inc. Disclosed Items 4 Qtr 2019 Excluded from Adjusted Operating Earnings Market Impact on Mean Reversion Non-traditional Gain on Market Impact Related Long-duration Securities the Disposal Securities of Hedges Integration/Restructuring (in millions, unaudited) Impacts (1) Prod
Slide 41: Exhibit B Corporate & Other Segment Details
Exhibit B Statistical Supplement Package (unaudited) Fourth Quarter 2020 Corporate & Other Segment Details 41 of 50
Slide 42: Corporate Excluding LTC, FA and Auto & Home
Ameriprise Financial, Inc. Corporate Excluding LTC, FA and Auto & Home Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % D
Slide 43: Corporate Segment - Long Term Care
Ameriprise Financial, Inc. Corporate Segment - Long Term Care Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Lo
Slide 44: Corporate Segment - Fixed Annuities
Ameriprise Financial, Inc. Corporate Segment - Fixed Annuities Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Fixed Annuitie
Slide 45: Exhibit C Non-GAAP Financial Measure Reconciliations
Exhibit C Statistical Supplement Package (unaudited) Fourth Quarter 2020 Non-GAAP Financial Measure Reconciliations 45 of 50
Slide 46: Non-GAAP Financial Measure Reconciliations
Ameriprise Financial, Inc. Non-GAAP Financial Measure Reconciliations Fourth Quarter 2020 (in millions unless otherwise noted, unaudited) 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Return on Equity Net income (last twelve months) 1,893$ 3,534$ 2,503$ 1,820$ 1,534$ 1,893$ 1,534$
Slide 47: Non-GAAP Financial Measure Reconciliations
Ameriprise Financial, Inc. Non-GAAP Financial Measure Reconciliations Fourth Quarter 2020 (in millions unless otherwise noted, unaudited) December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Senior notes (1) 3,050$ 2,300$ 2,800$ 2,800$ 2,800$ 57 54 51 47 44 (10) (10) (
Slide 48: Exhibit D Revenue Detail by Product
Exhibit D Statistical Supplement Package (unaudited) Fourth Quarter 2020 Revenue Detail by Product 48 of 50
Slide 49: Advice & Wealth Management Revenue From Contracts With Customers
Ameriprise Financial, Inc. Advice & Wealth Management Segment Revenue From Contracts With Customers Fourth Quarter 2020 Prior Year Comparisons (in millions, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Dif
Slide 50: Asset Management Revenue From Contracts With Customers
Ameriprise Financial, Inc. Asset Management Segment Revenue From Contracts With Customers Fourth Quarter 2020 Prior Year Comparisons (in millions, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff.