Ameriprise Financial, Inc. · NYSE:AMP
Ameriprise Financial — Q3 2024 Earnings Presentation
34 slides from Ameriprise Financial's earnings presentation, Oct 24, 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: Ameriprise Financial – a strong, successful company continually innovating
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 guide our company
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: Ameriprise Financial – 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: Our integrated model leverages key business linkages
Our integrated model leverages key business linkages to drive growth and consistency across market cycles • $146B of Columbia funds are • AWM is the sole distributor of distributed through AWM RiverSource solutions with $198B inforce life insurance and $88B of • $17B of AWM’s discretionary annuity A
Slide 8: We will continue to capture the significant Wealth Management opportunity
We will continue to capture the significant Wealth Management opportunity, while maintaining strong complementary capabilities Pretax Adjusted Operating Earnings 17% 38% 2014 31% 2024 $2.6B $4.8B 18% 65% 31% Advice & Wealth Management Asset Management Retirement & Protection Solutions 2024 represent
Slide 9: Ameriprise consistently delivers strong operating performance through multiple market cycles
Ameriprise consistently delivers strong operating performance through multiple market cycles One Year Performance +110 bps $2.6 billion +10% +14% Increase in Capital Revenue EPS Return on Returned to Growth Growth Equity ex. Shareholders AOCI Five Year Performance +1,290 bps $11.9 billion +7% +16% I
Slide 10: Ameriprise has delivered 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 30% Ameriprise 14% Wealth 27% Management 11% Peers Asset 29% Management 7% Peers Retirement & 16% Protection 4% Solutions Peers 25% Peer Composite 9% 36% S&P 500
Slide 11: Ameriprise is #1 for total shareholder return in the S&P 500 Financials Index
Ameriprise is #1 for total shareholder return in the S&P 500 Financials Index since spin-off in 2005 +1,826% #1 BEST PERFORMING stock in the S&P 500 Financials Index +581% +182% Spin-off 2024 2005 AMP S&P 500 Financials S&P Index Data as of September 30, 2024. See appendix for source information. ©
Slide 12: Wealth Management: We serve an 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: We provide a 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 86% of firmwide FLOWS helping clients achieve their financial
Slide 14: Our ongoing investments have driven an 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: Ameriprise is externally recognized for our differentiated value proposition
Ameriprise is externally recognized for our differentiated value proposition For the sixth consecutive year recognized Clients rate Ameriprise 4.9/5 in overall satisfaction and for providing “An Outstanding Customer Service “always putting my interests first” Experience” for phone support for adviso
Slide 16: Wealth Management has been a 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 +1,350 CAGR 15% 9% 8% bps $1,024 $1
Slide 17: Our 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% Peer 4 2024 Q3 TTM Margin 25% Peer 3 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 September 30, 2024. P
Slide 18: Our highly differentiated Retirement and Protection business delivers significant value
Our highly differentiated Retirement and Protection business delivers significant value for Ameriprise clients, advisors, and shareholders Top 5 VUL provider $198B Life Insurance Top 10 VA provider Strong returns with a inforce and $88B in VA lower risk profile Top 15 DI provider Account Value 100%
Slide 19: Retirement & Protection: High quality business with attractive risk-return profile
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 • $672B in Assets Under Management • Top 15 long-term mutual funds in the U.S. • Top 10 player in model delivery in the U.S. • Consistent track record of strong investment performan
Slide 21: Columbia Threadneedle is a scaled global player
Columbia Threadneedle is a scaled global player that is diversified across geographies, strategies and clients, and delivers competitive margins Assets Under Management By Region By Asset Class By Client Type Adjusted ($B) ($B) ($B) Margin $672 $672 $672 $41 $33 31-35% 36.5% $310 $224 $506 $506 $506
Slide 22: Strong financial performance results in differentiated 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 $2.
Slide 23: Maintain our strong culture and excellent reputation as a 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: 26th largest global asset manager -- Pensions & Investments/Thinking Ahead Institute World 500: World’s largest money managers – June 12, 2023 issue. Data as of Dec. 31, 2022. $46.1B market capitalization – S&P CapIQ. #1 in total shareholder return within the S&P 500 Financials
Slide 26: Disclosures
Disclosures Slide 14: 9 out of 10 Ameriprise recruited advisors say they have better integrated technology than their prior firm -- Ameriprise asked experienced advisors who moved their book of business to the firm in the last one-to- five years to compare its support, resources, and capabilities to
Slide 27: Disclosures
Disclosures Slide 18: Top 5 VUL insurance provider – LIMRA ANNUALIZED=Planned Recurring + 10% Single Premium – Q1 2024 Top 10 VA provider – Secure Retirement Industry Participant Report – Q1 2024 Top 15 DI provider – LIMRA Recognized by J.D. Power for “outstanding customer service experience” -- J.D
Slide 28: Reconciliation Tables
Reconciliation Tables Mix Shift ($ in millions) Full Year TTM (1) 2014 2024(2) Advice & Wealth Management pretax adjusted operating earnings $ 792 $ 3,108 Less: Unlocking - - Pretax adjusted operating earnings excluding unlocking $ 792 $ 3,108 Asset Management pretax adjusted operating earnings $ 78
Slide 29: Reconciliation Tables
Reconciliation Tables Adjusted operating earnings per diluted share Per Diluted Share Trailing Trailing Twelve Months ending Twelve Months ending September 30, September 30, (in millions, except per share amounts, unaudited) 2024 2023 CAGR 2024 2023 CAGR Total net revenues $16,755 $15,206 Adjustment
Slide 30: Reconciliation Tables
Reconciliation Tables Adjusted operating earnings per diluted share Per Diluted Share Trailing Trailing Twelve Months ending Twelve Months ending September 30, September 30, (in millions, except per share amounts, unaudited) 2024 2019(1) CAGR 2024 2019(1) CAGR Total net revenues $16,755 $12,859 Adju
Slide 31: Reconciliation Tables
Reconciliation Tables Adjusted operating return on equity ($ in millions) Twelve Months Ended September 30, 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: Unlocking (2) (74) (78) (16) Adjusted operat
Slide 32: Reconciliation Tables
Reconciliation TablesAdjusted operating earnings per diluted share TTM Full Year Per Diluted Share (1) (in millions, except per share amounts, unaudited) 2024 2014(2) CAGR 2024(1) 2014 (2) CAGR Total net revenues $16,755 $12,268 Adjustments: Net realized investment gains (losses)(3) (9) 37 (3) Marke
Slide 33: Reconciliation Tables
Reconciliation Tables Advice & Wealth Management net pretax adjusted operating margin ($ in millions) Full Year TTM 2014 2024(1) Adjusted operating total net revenues $4,806 $ 10,349 Pretax adjusted operating earnings $ 792 $ 3,108 Pretax adjusted operating margin 16.5% 30.0% (1) 2024 Represents tra
Slide 34: Reconciliation Tables
Reconciliation Tables Asset Management net pretax adjusted operating margin ($ in millions) TTM 2024(1) Adjusted operating total net revenues $3,430 Less: Distribution pass through revenues 762 Less: Subadvisory and other pass through revenues 398 Net adjusted operating revenues $2,270 Pretax adjust