4 unchanged sentences
exclusively, to our entire family of companies, or to one or more of our subsidiaries.
−Removed: Ameriprise Financial is a diversified financial services company with a more than 125-year history of providing financial solutions.
−Removed: We are a long-standing leader in financial planning and advice with $1.2 trillion in assets under management and administration as of September 30, 2023.
+Added: Ameriprise Financial is a diversified financial services company with a nearly 130-year history of providing financial solutions.
+Added: We are a long-standing leader in financial planning and advice with $1.4 trillion in assets under management and administration as of March 31, 2024.
We offer a broad range of products and services designed to achieve individual and institutional clients’ financial objectives.
8 unchanged sentences
The success of these and other strategies may be affected by the factors discussed in Item 1A, “Risk Factors” in our 2023 10-K and other factors as discussed herein.
−Removed: Equity price, credit market and interest rate fluctuations can have a significant impact on our results of operations, primarily due to the effects they have on the asset management and other asset-based fees we earn, the values of market risk benefits associated with our variable annuities and the values of derivatives held to hedge these benefits and the “spread” income generated on our deposit products, fixed insurance, the fixed portion of variable annuities and variable insurance contracts and fixed deferred annuities.
−Removed: We have been operating in a historically low interest rate environment but have recently experienced a substantial increase in rates with uncertainty about where rates will go in the future.
+Added: Equity price, credit market and interest rate fluctuations can have a significant impact on our results of operations, primarily due to the effects they have on the asset management and other asset-based fees we earn, the values of market risk benefits and embedded derivatives associated with our variable annuities and the values of derivatives held to hedge these benefits and the “spread” income generated on our deposit products, fixed insurance, the fixed portion of variable annuities and variable insurance contracts and fixed deferred annuities.
A higher (lower) interest rate environment may result in decreases (increases) to our long-duration contract reserves, which may impact our adjusted operating earnings after tax.
1 unchanged sentence
“Quantitative and Qualitative Disclosures About Market Risk.”
−Removed: In the third quarter, we updated our market-related assumptions and implemented model changes related to our living benefit valuation.
−Removed: In addition, we conducted our annual review of life insurance, annuity and long term care (“LTC”) valuation assumptions relative to current experience and management expectations including modeling changes.
−Removed: These aforementioned changes are collectively referred to as unlocking.
−Removed: See our Consolidated and Segment Results of Operations sections for the pretax impacts on our revenues and expenses attributable to unlocking.
−Removed: On July 13, 2023, we announced that we withdrew our application to convert Ameriprise Bank, FSB (“Ameriprise Bank”) to a state-chartered industrial bank and our application to establish a new limited purpose national trust bank.
−Removed: Ameriprise Bank will continue to operate as it does today, regulated by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation.
−Removed: These changes are not expected to impact our long-term growth strategy for Ameriprise Bank, and we will continue to offer our strong lineup of banking solutions, including deposits, credit cards, mortgages and securities-based lending to our wealth management clients without interruption.
We consolidate certain variable interest entities for which we provide asset management services.
5 unchanged sentences
We include the fees from these entities in the Management and financial advice fees line within our Asset Management segment.
−Removed: AMERIPRISE FINANCIAL, INC.
While our consolidated financial statements are prepared in accordance with U.S.
8 unchanged sentences
and the impact of consolidating CIEs, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis.
+Added: AMERIPRISE FINANCIAL, INC.
The market impact on non-traditional long-duration products includes changes in market risk benefits and embedded derivative values caused by changes in financial market conditions, net of changes in economic hedge values and unhedged items including the difference between assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and certain policyholder contract elections.
−Removed: The market impact also includes certain valuation adjustments made in accordance with FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosure s, including the impact on embedded derivative values of discounting projected benefits to reflect a current estimate of our life insurance subsidiary’s nonperformance spread.
+Added: The market impact also includes certain valuation adjustments made in accordance with Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value Measurements and Disclosure s, including the impact on embedded derivative values of discounting projected benefits to reflect a current estimate of our life insurance subsidiary’s nonperformance spread.
In the first quarter of 2023, management introduced an adjusted capital measure (“Available Capital for Capital Adequacy”), which management believes best reflects the available capital resources of our core operations and facilitates a meaningful trend analysis.
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GAAP measures.
−Removed: Concurrent with the adoption of ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts , management no longer excludes adjustments for deferred acquisition costs (“DAC”), deferred sales inducement costs (“DSIC”) and unearned revenue amortization from adjusted operating earnings measures.
−Removed: Amortization of DAC, DSIC, and unearned revenue is no longer impacted by markets and is now amortized on a constant-level basis in accordance with GAAP.
It is management’s priority to increase shareholder value over a multi-year horizon by achieving our on-average, over-time financial targets.
2 unchanged sentences
• Adjusted operating return on equity of over 30%.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: The following tables reconcile our GAAP measures to adjusted operating measures:
−Removed: Per Diluted Share
−Removed: Three Months Ended September 30,
−Removed: Three Months Ended September 30,
−Removed: (in millions, except per share amounts)
−Removed: Net income (loss)
−Removed: $ 872 $ 1,061 $ 8.14 $ 9.41
−Removed: Net realized investment gains (losses) (1)
−Removed: (38) (88) (0.35) (0.78)
−Removed: Market impact on non-traditional long-duration products (1)
−Removed: 211 405 1.96 3.60
−Removed: Mean reversion related impacts (1)
−Removed: — (1) — (0.01)
−Removed: Integration/restructuring charges (1)
−Removed: (12) (11) (0.11) (0.10)
−Removed: Net income (loss) attributable to CIEs — (3) — (0.03)
−Removed: Tax effect of adjustments (2)
−Removed: (34) (64) (0.32) (0.57)
−Removed: Adjusted operating earnings
−Removed: $ 745 $ 823 $ 6.96 $ 7.30
−Removed: Weighted average common shares outstanding:
−Removed: Basic 104.9 110.5
−Removed: Diluted 107.1 112.7
+Added: The following table reconciles our GAAP measures to adjusted operating measures:
Per Diluted Share
−Removed: Nine Months Ended September 30,
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
+Added: Three Months Ended March 31,
(in millions, except per share amounts)
Net income (loss) $ 990 $ 417 $ 9.46 $ 3.79
+Added: Less Adjustments:
Net realized investment gains (losses) (1)
−Removed: (32) (86) (0.29) (0.75)
Market impact on non-traditional long-duration products (1)
140 (475) 1.34 (4.32)
−Removed: Mean reversion related impacts (1)
−Removed: — (3) — (0.03)
Integration/restructuring charges (1)
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The following table reconciles the trailing twelve months’ sum of net income to adjusted operating earnings and the five-point average of quarter-end equity to adjusted operating equity:
−Removed: Twelve Months Ended September 30,
+Added: Twelve Months Ended March 31,
(in millions)
28 unchanged sentences
The following table reconciles GAAP total equity to Available Capital for Capital Adequacy:
−Removed: September 30, 2023 December 31, 2022
+Added: March 31, 2024 December 31, 2023
(in millions)
13 unchanged sentences
Certain of our accounting and reporting policies are critical to an understanding of our consolidated results of operations and financial condition and, in some cases, the application of these policies can be significantly affected by the estimates, judgments and assumptions made by management during the preparation of our Consolidated Financial Statements.
−Removed: The accounting and reporting policies and estimates we have identified as fundamental to a full understanding of our consolidated results of operations and financial condition are described below.
−Removed: See Note 2 to our Consolidated Financial Statements for further information about our accounting policies.
−Removed: Valuation of Investments
−Removed: The most significant component of our investments is our Available-for-Sale securities, which we carry at fair value within our Consolidated Balance Sheets.
−Removed: See Note 13 to our Consolidated Financial Statements for discussion of the fair value of our Available-for-Sale securities.
−Removed: Financial markets are subject to significant movements in valuation and liquidity, which can impact our ability to liquidate and the selling price that can be realized for our securities and increases the use of judgment in determining the estimated fair value of certain investments.
−Removed: We are unable to predict impacts and determine sensitivities in reported amounts reflecting such market movements on our aggregate Available-for-Sale portfolio.
−Removed: Changes to these assumptions do not occur in isolation and it is impracticable to predict such impacts at the individual security unit of measure which are predominately Level 2 fair value and based on observable inputs.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: Market Risk Benefits
−Removed: Market risk benefits are contracts or contract features that both provide protection to the contractholder from other-than-nominal capital market risk and expose us to other-than-nominal capital market risk.
−Removed: Market risk benefits include certain contract features on variable annuity products that provide minimum guarantees to policyholders.
−Removed: Guarantees accounted for as market risk benefits include guaranteed minimum death benefit (“GMDB”), guaranteed minimum income benefit (“GMIB”), guaranteed minimum withdrawal benefit (“GMWB”) and guaranteed minimum accumulation benefit (“GMAB”).
−Removed: Variable Annuities
−Removed: We have approximately $75 billion of variable annuity account value that has been issued over a period of more than fifty years.
−Removed: The diversified variable annuity block consists of $34 billion of account value with no living benefit guarantees and $41 billion of account value with living benefit guarantees, primarily GMWB provisions.
−Removed: The business is predominately issued through the Ameriprise Financial ® advisor network.
−Removed: The majority of the variable annuity contracts currently offered by us contain GMDB provisions.
−Removed: We discontinued most new sales of GMWB and GMAB at the end of 2021 and new sales were completely discontinued as of mid-2022.
−Removed: We also previously offered contracts containing GMIB provisions.
−Removed: See Note 11 to our Consolidated Financial Statements for further discussion of our variable annuity contracts.
−Removed: In determining the assets or liabilities for market risk benefits, we project these benefits and contract assessments using actuarial models to simulate various equity market scenarios.
−Removed: Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency, benefit utilization and investment margins.
−Removed: Management reviews, and where appropriate, adjusts its assumptions each quarter.
−Removed: Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year.
−Removed: In addition, the valuation of market risk benefits is impacted by an estimate of our nonperformance risk adjustment.
−Removed: This estimate includes a spread over the U.S.
−Removed: Treasury curve as of the balance sheet date.
−Removed: As our estimate of this spread over the U.S.
−Removed: Treasury curve widens or tightens, the liability will decrease or increase.
−Removed: The change in fair value due to changes in our nonperformance risk is recorded in other comprehensive income.
−Removed: Regarding the exposure to variable annuity living benefit guarantees, changes to reserves due to behavioral risk are driven by changes in policyholder surrenders and utilization of guaranteed withdrawal benefits.
−Removed: We have extensive experience studies and analysis to monitor changes and trends in policyholder behavior.
−Removed: A significant volume of company-specific policyholder experience data is available and provides management with the ability to regularly analyze policyholder behavior.
−Removed: On a monthly basis, actual surrender and benefit utilization experience is compared to expectations.
−Removed: Experience data includes detailed policy information providing the opportunity to review impacts of multiple variables.
−Removed: The ability to analyze differences in experience, such as presence of a living benefit rider, existence of surrender charges, and tax qualifications provide us an effective approach in detecting changes in policyholder behavior.
−Removed: At least annually, we perform a thorough policyholder behavior analysis to validate the assumptions included in our market risk benefit reserves.
−Removed: The variable annuity assumptions and resulting reserve computations reflect multiple policyholder variables.
−Removed: Differentiation in assumptions by policyholder age, existence of surrender charges, guaranteed withdrawal utilization, and tax qualification are examples of factors recognized in establishing management’s assumptions used in market risk benefit calculations.
−Removed: The extensive data derived from our variable annuity block informs management in confirming previous assumptions and revising the variable annuity behavior assumptions.
−Removed: Changes in assumptions are governed by a review and approval process to ensure an appropriate measurement of all impacted financial statement balances.
−Removed: Changes in these assumptions can be offsetting and we are unable to predict their movement, sensitivities in reported amounts, offsetting impacts, or future impacts to the Consolidated Financial Statements over time or in any given future period.
−Removed: Future Policy Benefits and Claims
−Removed: We establish reserves to cover the benefits associated with non-traditional and traditional long-duration products.
−Removed: Non-traditional long-duration products include variable and structured variable annuity contracts, fixed annuity contracts and UL and VUL policies.
−Removed: Traditional long-duration products include term life insurance, whole life insurance, disability income (“DI”) and LTC insurance and life contingent payout annuity products.
−Removed: UL and VUL policies with product features that result in profits followed by losses are accounted for as insurance liabilities.
−Removed: The portion of structured variable annuities, indexed annuities and indexed universal life (“IUL”) policies allocated to the indexed account is accounted for as an embedded derivative.
−Removed: The establishment of reserves is an estimation process using a variety of methods, assumptions and data elements.
−Removed: If actual experience is better than or equal to the results of the estimation process, then reserves should be adequate to provide for future benefits and expenses.
−Removed: If actual experience is worse than the results of the estimation process, additional reserves may be required.
−Removed: Non-Traditional Long-Duration Products, including Embedded Derivatives
−Removed: A portion of our UL and VUL policies have product features that result in profits followed by losses from the insurance component of the contract.
−Removed: These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges.
−Removed: The liability for these future losses is determined at the reporting date using actuarial models to estimate the death benefits in excess of account value and recognizing the excess over the estimated life based on expected assessments (e.g.
−Removed: cost of insurance charges, contractual administrative charges, similar fees and investment margin).
−Removed: Significant assumptions made in projecting future benefits and assessments relate to client asset value growth rates, mortality, persistency and investment margins.
−Removed: Changes in these assumptions can be offsetting and we are unable to predict their movement, sensitivities in reported amounts, offsetting impacts, or future impacts to the Consolidated Financial Statements over time or in any given future period.
−Removed: See Note 9 to our Consolidated Financial Statements for information regarding the liability for contracts with secondary guarantees.
−Removed: Embedded Derivatives
−Removed: The fair value of embedded derivatives related to structured variable annuities, indexed annuities and IUL fluctuates based on equity markets and interest rates and is a liability.
−Removed: In addition, the valuation of embedded derivatives is impacted by an estimate of our nonperformance risk adjustment.
−Removed: This estimate includes a spread over the U.S.
−Removed: Treasury curve as of the balance sheet date.
−Removed: As our estimate of this spread over the U.S.
−Removed: Treasury curve widens or tightens, the liability will decrease or increase.
−Removed: See Note 13 to our Consolidated Financial Statements for information regarding the fair value measurement of embedded derivatives.
−Removed: Traditional Long-Duration Products
−Removed: The liabilities for traditional long-duration products include cash flows related to unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life, DI, LTC, and life contingent payout annuity policies as claims are incurred in the future.
−Removed: Accordingly, the claim liability (also referred to as disabled life reserves) is presented together as one liability for future policy benefits.
−Removed: A liability for future policy benefits, which is the present value of estimated future policy benefits to be paid to or on behalf of policyholders and certain related expenses less the present value of estimated future net premiums to be collected from policyholders, is accrued as premium revenue is recognized.
−Removed: Expected insurance benefits are accrued over the life of the contract in proportion to premium revenue recognized (referred to as the net premium approach).
−Removed: The net premium ratio reflects cash flows from contract inception to contract termination (i.e., through the claim paying period) and cannot exceed 100%.
−Removed: The liability for future policy benefits will be updated for actual experience at least on an annual basis and concurrent with changes to cash flow assumptions.
−Removed: When net premiums are updated for cash flow changes, the estimated cash flows over the entire life of a group of contracts are updated using historical experience and updated future cash flow assumptions.
−Removed: The cash flows used in the calculation are discounted using the forward rate curve on the original contract issue date.
−Removed: The discount rate represents an upper-medium-grade (i.e., low credit risk) fixed-income instrument yield (i.e., an A rating) that reflects the duration characteristics of the liability.
−Removed: Derivative Instruments and Hedging Activities
−Removed: We use derivative instruments to manage our exposure to various market risks.
−Removed: All derivatives are recorded at fair value.
−Removed: The fair value of our derivative instruments is determined using either market quotes or valuation models that are based upon the net present value of estimated future cash flows and incorporate current market observable inputs to the extent available.
−Removed: We are unable to predict impacts and determine sensitivities in reported amounts reflecting such market movements on our aggregate derivative portfolio.
−Removed: Changes to assumptions do not occur in isolation and it is impracticable to predict such impacts at the individual security unit of measure which are predominately Level 2 fair value and based on observable inputs.
−Removed: For further details on the types of derivatives we use and how we account for them, see Note 2, Note 13 and Note 15 to our Consolidated Financial Statements.
−Removed: For discussion of our market risk exposures and hedging program and related sensitivity testing, see Item 3.
−Removed: “Quantitative and Qualitative Disclosures About Market Risk.”
+Added: These accounting policies are discussed in detail in “Management’s Discussion and Analysis — Critical Accounting Estimates” in our 2023 10-K.
Recent Accounting Pronouncements
4 unchanged sentences
The following table presents relevant market indices:
−Removed: Three Months Ended September 30,
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Daily average 4,996 3,998 25%
17 unchanged sentences
The following table presents detail regarding our AUM and AUA:
−Removed: September 30,
(in billions)
2 unchanged sentences
Asset Management AUM 652.1 607.7 44.4 7
−Removed: Corporate AUM 0.3 0.2 0.1 50
+Added: Corporate AUM 0.4 0.2 0.2 NM
Eliminations (43.2) (38.0) (5.2) (14)
2 unchanged sentences
Total AUM and AUA $ 1,424.9 $ 1,235.6 $ 189.3 15 %
−Removed: Total AUM increased $96.9 billion, or 11%, to $990.4 billion as of September 30, 2023 compared to $893.5 billion as of September 30, 2022 due to a $58.3 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $40.7 billion increase in Asset Management AUM primarily driven by equity market appreciation, partially offset by net outflows.
+Added: NM Not Meaningful - variance equal to or greater than 100%.
+Added: Total AUM increased $126.1 billion, or 13%, to $1.1 trillion as of March 31, 2024 compared to $1.0 trillion as of March 31, 2023 due to an $86.7 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $44.4 billion increase in Asset Management AUM primarily driven by equity market appreciation.
+Added: Total AUA increased $63.2 billion, or 27%, to $297.5 billion as of March 31, 2024 compared to the prior year period primarily driven by equity market appreciation and an increase in third-party money market funds and brokered CDs.
See our segment results of operations discussion below for additional information on changes in our AUM.
AMERIPRISE FINANCIAL, INC.
−Removed: Consolidated Results of Operations for the Three Months Ended September 30, 2023 and 2022
+Added: Consolidated Results of Operations for the Three Months Ended March 31, 2024 and 2023
The following table presents our consolidated results of operations:
−Removed: Three Months Ended September 30,
+Added: Three Months Ended March 31,
(in millions)
1 unchanged sentence
Distribution fees 506 517 (11) (2)
−Removed: Net investment income 809 349 460 NM
+Added: Net investment income 901 698 203 29
Premiums, policy and contract charges 390 362 28 8
1 unchanged sentence
Total revenues 4,325 3,845 480 12
−Removed: Banking and deposit interest expense 151 15 136 NM
+Added: Banking and deposit interest expense 179 103 76 74
Total net revenues 4,146 3,742 404 11
2 unchanged sentences
Benefits, claims, losses and settlement expenses 295 301 (6) (2)
−Removed: Remeasurement (gains) losses of future policy benefit reserves (12) (1) (11) NM
+Added: Remeasurement (gains) losses of future policy benefit reserves (4) (5) 1 20
Change in fair value of market risk benefits (18) 489 (507) NM
4 unchanged sentences
Pretax income
−Removed: Income tax provision 245 274 (29) (11)
−Removed: Net income $ 872 $ 1,061 $ (189) (18) %
−Removed: NM Not Meaningful.
−Removed: Pretax income decreased $218 million, or 16%, for the three months ended September 30, 2023 compared to the prior year period.
−Removed: The following impacts were significant drivers of the period-over-period change in pretax income:
−Removed: • The unfavorable impact of unlocking was $99 million for the three months ended September 30, 2023 compared to a favorable impact of $133 million for the prior year period.
−Removed: • The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was a benefit of $211 million for the three months ended September 30, 2023 compared to a benefit of $405 million for the prior year period.
−Removed: • A favorable impact from the trend in rising interest rates on the investment portfolio yield, including from investment portfolio repositioning in our insurance business in the fourth quarter of 2022, along with higher balances in bank and certificate products.
+Added: 1,219 496 723 NM
+Added: Income tax provision 229 79 150 NM
+Added: Net income $ 990 $ 417 $ 573 NM
+Added: NM Not Meaningful - variance equal to or greater than 100%.
+Added: Pretax income increased $723 million for the three months ended March 31, 2024 compared to the prior year period.
+Added: • The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was a benefit of $140 million for the three months ended March 31, 2024 compared to an expense of $475 million for the prior year period.
• A favorable impact from higher average equity markets compared to the prior year period.
−Removed: Our average WEI, which is a proxy for equity movements on AUM, increased 11% in the three months ended September 30, 2023 compared to the prior year period.
−Removed: The ending WEI increased 19% compared to the prior year.
+Added: Our average WEI, which is a proxy for equity movements on AUM, increased 21% in the quarter compared to the prior year period.
The average S&P 500 index was 25% higher in the quarter compared to the prior year period.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: The following table presents the total pretax impacts on our revenues and expenses attributable to unlocking for the three months ended September 30:
−Removed: Pretax Increase (Decrease) 2023
−Removed: (in millions)
−Removed: Premiums, policy and contract charges $ 1 $ (1)
−Removed: Total revenues 1 (1)
−Removed: Benefits, claims, losses and settlement expenses (17) 7
−Removed: Remeasurement (gains) losses of future policy benefit reserves:
−Removed: LTC unlocking (5) (6)
−Removed: Unlocking impact, excluding LTC (6) 6
−Removed: Total remeasurement (gains) losses of future policy benefit reserves (11) —
−Removed: Change in fair value of market risk benefits 128 (139)
−Removed: Amortization of DAC — (2)
−Removed: Total expenses
−Removed: Pretax income (loss) (1)
−Removed: (1) Includes a $2 million net expense related to the market impact on IUL benefits for the three months ended September 30, 2022, which is excluded from adjusted operating earnings.
−Removed: Refer to Results of Operations by Segment for the impact to pretax adjusted operating earnings attributable to unlocking.
−Removed: The primary drivers of the year-over-year unlocking impact include the following items:
−Removed: • We lowered our surrender assumptions on variable annuities with living benefits resulting in an expense in the third quarter of 2023.
−Removed: • Interest rate assumptions resulted in a benefit in the third quarter of 2022, partially offset by lower surrender assumptions and updated mortality assumptions for variable annuities with living benefits.
−Removed: Management and financial advice fees increased $115 million, or 5%, for the three months ended September 30, 2023 compared to the prior year period reflecting market appreciation and wrap account net inflows, partially offset by the cumulative impact of Asset Management net outflows.
−Removed: Distribution fees decreased $43 million, or 8%, for the three months ended September 30, 2023 compared to the prior year period primarily due to lower fees on off-balance sheet brokerage cash due to lower off-balance sheet brokerage cash balances.
−Removed: Net investment income increased $460 million, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the following items:
−Removed: • The favorable impact of growth in Ameriprise Bank customer deposits and certificate business as a result of the market environment and our strategic decision to invest in these businesses.
−Removed: • The favorable impact of the trend in rising interest rates on the investment portfolio yield, including from investment portfolio repositioning in our insurance business in the fourth quarter of 2022.
−Removed: • The favorable impact of net realized investment losses of $37 million for the three months ended September 30, 2023 compared to net realized investment losses of $87 million for the prior year period.
−Removed: Net realized investment losses for three months ended September 30, 2023 were primarily driven by the continued fixed maturity investment portfolio repositioning.
−Removed: Net realized investment losses for three months ended September 30, 2022 were primarily driven by the fixed maturity investment portfolio repositioning in response to market conditions.
−Removed: • The favorable impact of higher net investment income of CIEs.
−Removed: Premiums, policy and contract charges increased $36 million, or 10%, for the three months ended September 30, 2023 compared to the prior year period primarily due to higher sales of life contingent payout annuities.
−Removed: Banking and deposit interest expense increased $136 million, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and Ameriprise Bank cash deposits.
−Removed: Distribution expenses increased $99 million, or 8%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting higher market appreciation.
+Added: • A favorable impact from the trend in rising interest rates on the investment portfolio yield, along with higher balances in bank, certificate and structured variable annuities (“SVA”) products.
+Added: • An unfavorable impact from the cumulative impact of Asset Management net outflows.
+Added: Management and financial advice fees increased $262 million, or 12%, for the three months ended March 31, 2024 compared to the prior year period reflecting market appreciation and continued wrap account net inflows, partially offset by the cumulative impact of Asset Management net outflows.
+Added: Distribution fees decreased $11 million, or 2%, for the three months ended March 31, 2024 compared to the prior year period due to $76 million of lower fees on off-balance sheet brokerage cash due to a decrease in average balances, partially offset by strong transactional activity.
AMERIPRISE FINANCIAL, INC.
−Removed: Interest credited to fixed accounts decreased $18 million, or 11%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the following items:
−Removed: • A $4 million decrease in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits.
−Removed: The unfavorable impact of the nonperformance credit spread was $2 million for the three months ended September 30, 2023 compared to an unfavorable impact of $6 million for the prior year period.
−Removed: • A $9 million decrease in expense from other market impacts on IUL benefits, net of hedges, which was a benefit of $15 million for the three months ended September 30, 2023 compared to a benefit of $6 million for the prior year period.
−Removed: The decrease in expense was primarily due to a decrease in the IUL embedded derivative in the current period, which reflected higher option costs due to a higher new money rate, offset by more discounting due to higher Treasury rates.
−Removed: Benefits, claims, losses and settlement expenses increased $39 million, or 48%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the impact of higher sales of life contingent payout annuities.
−Removed: Change in fair value of market risk benefits increased $489 million, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the following items:
−Removed: • The impact of unlocking was an expense of $128 million for three months ended September 30, 2023 primarily reflecting the impact of lower surrender assumptions on variable annuities with living benefits compared to a benefit of $139 million for the prior year period primarily reflecting the impact of interest rate assumptions, partially offset by lower surrender assumptions and updated mortality assumptions for variable annuities with living benefits.
−Removed: • A $178 million increase in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks.
−Removed: This increase was the result of an unfavorable $495 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits, partially offset by a favorable $317 million change in the market impact on variable annuity guaranteed benefits reserves.
+Added: Net investment income increased $203 million, or 29%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting:
+Added: • The favorable impact of growth in Ameriprise Bank, FSB (“Ameriprise Bank”) customer deposits and certificate business as a result of the market environment along with higher average balances due to the growth in SVAs.
+Added: • The favorable impact of the trend in rising interest rates on the investment portfolio yield.
+Added: Premiums, policy and contract charges increased $28 million, or 8%, for the three months ended March 31, 2024 compared to the prior year period primarily due to higher sales of life contingent payout annuities.
+Added: Banking and deposit interest expense increased $76 million for the three months ended March 31, 2024 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and Ameriprise Bank cash deposits.
+Added: Distribution expenses increased $193 million, or 16%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting higher advisor compensation from higher average wrap account assets and increased transactional activity, as well as continued investments in recruiting experienced advisors.
+Added: Interest credited to fixed accounts decreased $32 million, or 20%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the following items:
+Added: • A $78 million decrease in expense from other market impacts on indexed universal life (“IUL”) benefits, net of hedges, which was a benefit of $32 million for the three months ended March 31, 2024 compared to an expense of $46 million for the prior year period.
+Added: The decrease in expense was primarily due to an increase in the IUL embedded derivative in the prior period, which reflected less discounting due to lower Treasury rates, partially offset by lower option costs due to a lower new money rate.
+Added: • A $47 million increase in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits.
+Added: The unfavorable impact of the nonperformance credit spread was $17 million for the three months ended March 31, 2024 compared to a favorable impact of $30 million for the prior year period.
+Added: Benefits, claims, losses and settlement expenses decreased $6 million, or 2%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the following items:
+Added: • A $68 million decrease in expense from market impacts on SVA embedded derivative, net of hedges in place to offset those risks.
+Added: This decrease was primarily the result of a favorable $421 million change in the market impact on derivatives hedging the SVA embedded derivative and an unfavorable $340 million change in the market impact on SVA embedded derivative.
+Added: The main market driver contributing to these changes was the equity market impact on the SVA embedded derivative net of the impact on the corresponding hedge assets resulted in an lower expense for the three months ended March 31, 2024 compared to the prior year period.
+Added: • Partially offset by the impact of higher sales of life contingent payout annuities and increased volume in SVAs.
+Added: Change in fair value of market risk benefits decreased $507 million, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the following items:
+Added: • A $520 million decrease in expense from market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks.
+Added: This decrease was the result of a favorable $1.3 billion change in the market impact on variable annuity guaranteed benefits reserves and an unfavorable $738 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits.
The main market drivers contributing to these changes are summarized below:
−Removed: • Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the three months ended September 30, 2023 compared to the prior year period.
−Removed: • Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower benefit for the three months ended September 30, 2023 compared to the prior year period.
−Removed: • Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the three months ended September 30, 2023 compared to the prior year period.
−Removed: • Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a higher net expense for the three months ended September 30, 2023 compared to the prior year period.
−Removed: Interest and debt expense increased $32 million, or 62%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting higher interest expense of CIEs and the issuance of $750 million of unsecured senior notes in March 2023.
−Removed: General and administrative expense increased $25 million, or 3%, for the three months ended September 30, 2023 compared to the prior year period primarily due to a $20 million accrual for a regulatory matter relating to electronic communication recordkeeping requirements, higher volume related expenses and investments for business growth.
−Removed: Our effective tax rate was 21.8% for the three months ended September 30, 2023 compared to 20.5% for the prior year period.
−Removed: See Note 17 to our Consolidated Financial Statements for additional discussion on income taxes.
−Removed: Results of Operations by Segment for the Three Months Ended September 30, 2023 and 2022
−Removed: Adjusted operating earnings is the measure of segment profit or loss management uses to evaluate segment performance.
−Removed: Adjusted operating earnings should not be viewed as a substitute for GAAP pretax income.
−Removed: We believe the presentation of segment adjusted operating earnings as we measure it for management purposes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitating a more meaningful trend analysis.
−Removed: See Note 20 to the Consolidated Financial Statements for further information on the presentation of segment results and our definition of adjusted operating earnings.
+Added: • Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a higher benefit for the three months ended March 31, 2024 compared to the prior year period.
+Added: • Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the three months ended March 31, 2024 compared to an expense for the prior year period.
+Added: • Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a higher expense for the three months ended March 31, 2024 compared to the prior year period.
+Added: • Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a higher net expense for the three months ended March 31, 2024 compared to the prior year period.
+Added: Interest and debt expense increased $10 million, or 14%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the issuance of $750 million and $600 million of unsecured senior notes in March 2023 and November 2023, respectively, partially offset by the maturity of $750 million of unsecured senior notes in October 2023.
AMERIPRISE FINANCIAL, INC.
+Added: General and administrative expense increased $23 million, or 2%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting higher volume related expenses and investments for business growth, an unfavorable change in the mark-to-market impact on share-based compensation due to share price appreciation, partially offset by higher one-time expenses in the prior year period.
+Added: Our effective tax rate was 18.8 % for the three months ended March 31, 2024 compared to 15.9 % for the prior year period.
+Added: The increase in the effective tax rate for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 was primarily due to higher pretax income and a decrease in foreign tax credits net of addback, partially offset by an increase in incentive compensation compared to the prior year period.
+Added: See Note 16 to our Consolidated Financial Statements for additional discussion on income taxes.
+Added: Results of Operations by Segment for the Three Months Ended March 31, 2024 and 2023
The following table presents summary financial information by segment:
−Removed: Three Months Ended September 30,
+Added: Three Months Ended March 31,
(in millions)
15 unchanged sentences
Adjusted operating loss $ (89) $ (74)
−Removed: The following table presents the segment pretax adjusted operating impacts on our revenues and expenses attributable to unlocking for the three months ended September 30:
−Removed: Segment Pretax Operating Increase (Decrease) 2023
−Removed: Retirement & Protection Solutions Corporate Retirement & Protection Solutions Corporate
−Removed: (in millions)
−Removed: Premiums, policy and contract charges $ 1 $ — $ 1 $ (2)
−Removed: Total revenues 1 — 1 (2)
−Removed: Benefits, claims, losses and settlement expenses
−Removed: Remeasurement (gains) losses of future policy benefit reserves:
−Removed: LTC unlocking — (5) — (6)
−Removed: Unlocking impact, excluding LTC (6) — 6 —
−Removed: Total remeasurement (gains) losses of future policy benefit reserves (6) (5) 6 (6)
−Removed: Change in fair value of market risk benefits 128 — (139) —
−Removed: Amortization of DAC
−Removed: Total expenses
−Removed: 105 (5) (127) (9)
−Removed: Pretax income (loss) $ (104) $ 5 $ 128 $ 7
−Removed: AMERIPRISE FINANCIAL, INC.
Advice & Wealth Management
−Removed: The following table presents the changes in wrap account assets and average balances for the three months ended September 30:
+Added: The following table presents the changes in wrap account assets and average balances for the three months ended March 31:
(in billions)
9 unchanged sentences
Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.
−Removed: (2) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period excluding the most recent month for the three months ended September 30, 2023 and 2022.
−Removed: Ending wrap account assets decreased $10.6 billion, or 2%, to $444.1 billion during the three months ended September 30, 2023 due to market depreciation of $16.0 billion, partially offset by net inflows of $5.4 billion.
−Removed: Average advisory wrap account assets increased $47.6 billion, or 12%, compared to the prior year period primarily reflecting market appreciation and net inflows.
+Added: (2) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period excluding the most recent month for the three months ended March 31, 2024 and 2023, which is reflective of our billing cycle.
+Added: Ending wrap account assets increased $33.5 billion, or 7%, to $521.7 billion during the three months ended March 31, 2024 due to market appreciation and other of $27.0 billion and net inflows of $6.5 billion.
+Added: Average advisory wrap account assets increased $71.2 billion, or 17%, compared to the prior year period reflecting market appreciation and net inflows.
+Added: AMERIPRISE FINANCIAL, INC.
The following table presents the results of operations of our Advice & Wealth Management segment on an adjusted operating basis:
−Removed: Three Months Ended September 30,
+Added: Three Months Ended March 31,
(in millions)
1 unchanged sentence
Distribution fees 598 593 5 1
−Removed: Net investment income 517 219 298 NM
+Added: Net investment income 560 409 151 37
Other revenues 72 67 5 7
Total revenues 2,739 2,368 371 16
−Removed: Banking and deposit interest expense 151 15 136 NM
+Added: Banking and deposit interest expense 179 103 76 74
Total net revenues 2,560 2,265 295 13
Distribution expenses 1,369 1,173 196 17
−Removed: Interest and debt expense 6 3 3 NM
+Added: Interest and debt expense 9 7 2 29
General and administrative expense 420 392 28 7
1 unchanged sentence
Adjusted operating earnings $ 762 $ 693 $ 69 10 %
−Removed: NM Not Meaningful.
−Removed: Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $134 million, or 23%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting a benefit from higher short-term interest rates and growth in investments supporting the bank cash deposits and certificate products along with higher average wrap account balances due to market appreciation and net inflows.
−Removed: Pretax adjusted operating margin increased to 30.3% for the three months ended September 30, 2023 compared to 27.8% for the prior year period, reflecting the benefit of higher short-term interest rates.
−Removed: Ameriprise Bank is continuing its deposit growth trend, with bank deposits balances increasing $2.4 billion from the prior year period to $21.0 billion as of September 30, 2023.
+Added: Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $69 million, or 10%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting market appreciation, higher short-term interest rates and growth in bank cash deposits and certificate products along with the cumulative impact of client net flows.
+Added: Pretax adjusted operating margin was 29.8% for the for the three months ended March 31, 2024 compared to 30.6% for the prior year period.
+Added: Ameriprise Bank is continuing its deposit growth trend, with bank deposit balances increasing $1.3 billion from the prior year period to $21.3 billion.
+Added: The daily average interest-bearing deposit balance increased to $21.3 billion for the three months ended March 31, 2024 compared to $19.0 billion for the prior year period with the average interest rate paid on deposits increasing to 0.42% for the three months ended March 31, 2024 from 0.36% for the prior year period.
Profitability at the bank increased compared to the prior year period primarily reflecting increased interest rates along with the trend in deposit growth.
−Removed: The Ameriprise Certificate Company experienced strong growth in the current interest rate environment with client deposits increasing $6.4 billion from the prior year period to $12.6 billion.
+Added: The Ameriprise Certificate Company experienced strong growth given the current interest rate environment with client deposits increasing $2.1 billion from the prior year period to $13.2 billion.
+Added: Management and financial advice fees increased $210 million, or 16%, for the three months ended March 31, 2024 compared to the prior year period primarily due to higher average wrap account assets.
+Added: Average advisory wrap account assets increased $71.2 billion, or 17%, compared to the prior year period reflecting market appreciation and net inflows.
+Added: Distribution fees increased $5 million, or 1%, for the three months ended March 31, 2024 compared to the prior year period reflecting strong transactional activity, partially offset by $76 million of lower fees on off-balance sheet brokerage cash due to a decrease in average balances.
+Added: Net investment income, which excludes net realized investment gains or losses, increased $151 million, or 37%, for the three months ended March 31, 2024 compared to the prior year period primarily due to higher average invested assets due to increased bank and certificate deposits and the favorable impact of increased short-term interest rates, including higher investment yields on the investment portfolio supporting the bank and certificate products.
+Added: Banking and deposit interest expense increased $76 million, or 74%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting higher average crediting rates and higher average balances on certificates and bank cash deposits.
+Added: Distribution expenses increased $196 million, or 17%, for the three months ended March 31, 2024 compared to the prior year period reflecting higher advisor compensation from higher average wrap account assets and increased transactional activity, as well as continued investments in recruiting experienced advisors.
+Added: General and administrative expense increased $28 million, or 7%, for the three months ended March 31, 2024 compared to the prior year period primarily due to higher volume related expenses and investments for business growth.
AMERIPRISE FINANCIAL, INC.
−Removed: Management and financial advice fees increased $127 million, or 10%, for the three months ended September 30, 2023 compared to the prior year period primarily due to growth in average wrap account assets.
−Removed: Average advisory wrap account assets increased $47.6 billion, or 12%, compared to the prior year period primarily reflecting market appreciation and net inflows.
−Removed: Distribution fees decreased $27 million, or 5%, for the three months ended September 30, 2023 compared to the prior year period reflecting lower fees on off-balance sheet brokerage cash due to lower off-balance sheet brokerage cash balances.
−Removed: Net investment income, which excludes net realized investment gains or losses, increased $298 million, for the three months ended September 30, 2023 compared to the prior year period primarily due to higher average invested assets due to growth in bank cash deposits and certificate products and the favorable impact of increasing short-term interest rates, including higher investment yields on the investment portfolios supporting the products.
−Removed: Banking and deposit interest expense increased $136 million, for the three months ended September 30, 2023 compared to the prior year period primarily due to higher average crediting rates and higher average volumes on certificates and bank cash deposits.
−Removed: General and administrative expense increased $29 million, or 7%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting a $20 million accrual for a regulatory matter relating to electronic communication recordkeeping requirements, higher volume related expenses and investing for business growth.
Asset Management
−Removed: The following tables present the mutual fund performance of our retail Columbia Threadneedle Investments funds as of September 30, 2023:
+Added: The following tables present the mutual fund performance of our retail Columbia Threadneedle Investments funds as of March 31, 2024:
Retail Fund Rankings in Top 2 Quartiles or Above Index Benchmark - Asset Weighted (1)
19 unchanged sentences
The following table presents global managed assets by type:
−Removed: As of September 30,
−Removed: Change Three Months Ended
−Removed: September 30,
−Removed: (in billions)
−Removed: Equity $ 299.1 $ 278.5 $ 20.6 7 % $ 313.9 $ 305.1 $ 8.8 3 %
−Removed: Fixed income 214.9 194.6 20.3 10 222.8 214.3 8.5 4
−Removed: Money market 22.7 21.3 1.4 7 22.6 18.5 4.1 22
−Removed: Alternative 33.6 35.2 (1.6) (5) 34.8 37.0 (2.2) (6)
−Removed: Hybrid and other 16.9 16.9 — — 17.5 18.4 (0.9) (5)
−Removed: Total managed assets $ 587.2 $ 546.5 $ 40.7 7 % $ 611.6 $ 593.3 $ 18.3 3 %
−Removed: (1) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: The following table presents the changes in global managed assets:
−Removed: Three Months Ended September 30,
−Removed: (in billions)
−Removed: Global Retail Funds
−Removed: Beginning assets $ 327.4 $ 323.0
−Removed: Inflows 11.3 11.7
−Removed: Outflows (15.2) (17.6)
−Removed: Net VP/VIT fund flows (1.3) (1.0)
−Removed: Net new flows (5.2) (6.9)
−Removed: Reinvested dividends 1.3 1.6
−Removed: Net flows (3.9) (5.3)
−Removed: Distributions (1.5) (1.9)
−Removed: Market appreciation (depreciation) and other (8.5) (15.3)
−Removed: Foreign currency translation (1)
−Removed: Total ending assets 310.2 296.2
−Removed: Global Institutional
−Removed: Beginning assets 289.2 275.2
−Removed: Net flows (0.3) 2.9
−Removed: Market appreciation (depreciation) and other (3)
−Removed: Foreign currency translation (1)
−Removed: Total ending assets 277.0 250.3
−Removed: Total managed assets $ 587.2 $ 546.5
−Removed: Total net flows $ (4.2) $ (2.4)
−Removed: Legacy insurance partners net flows (4)
−Removed: $ (0.9) $ (1.0)
−Removed: (1) Amounts represent local currency to U.S.
−Removed: dollar translation for reporting purposes.
−Removed: (2) Global Institutional inflows and outflows include net flows from our structured annuity product and Ameriprise Bank.
−Removed: (3) Included in Market appreciation (depreciation) and other for Global Institutional is the change in affiliated general account balance, excluding net flows related to our structured variable annuity product and Ameriprise Bank.
−Removed: (4) Legacy insurance partners assets and net flows are included in the rollforwards above.
−Removed: Total segment AUM decreased $29.4 billion, or 5%, during the three months ended September 30, 2023 primarily due to equity and fixed income market depreciation, foreign exchange translation, and net outflows.
−Removed: Net outflows were $4.2 billion in the third quarter of 2023, a $1.8 billion decrease compared to the prior year period.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: The following table presents the results of operations of our Asset Management segment on an adjusted operating basis:
−Removed: Three Months Ended September 30,
−Removed: (in millions)
−Removed: Management and financial advice fees $ 717 $ 723 $ (6) (1) %
−Removed: Distribution fees 92 96 (4) (4)
−Removed: Net investment income 10 2 8 NM
−Removed: Other revenues 7 2 5 NM
−Removed: Total revenues 826 823 3 —
−Removed: Banking and deposit interest expense — — — —
−Removed: Total net revenues 826 823 3 —
−Removed: Distribution expenses 234 238 (4) (2)
−Removed: Amortization of deferred acquisition costs 1 2 (1) (50)
−Removed: Interest and debt expense 2 1 1 NM
−Removed: General and administrative expense 390 391 (1) —
−Removed: Total expenses 627 632 (5) (1)
−Removed: Adjusted operating earnings $ 199 $ 191 $ 8 4 %
−Removed: NM Not Meaningful.
−Removed: Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $8 million, or 4%, for the three months ended September 30, 2023 compared to the prior year period primarily due to equity market appreciation, partially offset by the cumulative impact from net outflows.
−Removed: Management and financial advice fees decreased $6 million, or 1%, for the three months ended September 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows, partially offset by higher average equity markets.
−Removed: Distribution fees decreased $4 million, or 4%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the cumulative impact from net outflows.
−Removed: Net investment income increased $8 million, for the three months ended September 30, 2023 compared to the prior year period primarily driven by higher interest rates.
−Removed: Distribution expenses decreased $4 million, or 2%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the cumulative impact from net outflows.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: Retirement & Protection Solutions
−Removed: The following table presents the results of operations of our Retirement & Protection Solutions segment on an adjusted operating basis:
−Removed: Three Months Ended September 30,
−Removed: (in millions)
−Removed: Management and financial advice fees $ 186 $ 189 $ (3) (2) %
−Removed: Distribution fees 101 101 — —
−Removed: Net investment income 215 151 64 42
−Removed: Premiums, policy and contract charges 372 339 33 10
−Removed: Other revenues 2 3 (1) (33)
−Removed: Total revenues 876 783 93 12
−Removed: Banking and deposit interest expense — — — —
−Removed: Total net revenues 876 783 93 12
−Removed: Distribution expenses 117 106 11 10
−Removed: Interest credited to fixed accounts 94 97 (3) (3)
−Removed: Benefits, claims, losses and settlement expenses 168 113 55 49
−Removed: Remeasurement (gains) losses of future policy benefit reserves (10) 5 (15) NM
−Removed: Change in fair value of market risk benefits 259 (11) 270 NM
−Removed: Amortization of deferred acquisition costs 57 56 1 2
−Removed: Interest and debt expense 12 10 2 20
−Removed: General and administrative expense 79 82 (3) (4)
−Removed: Total expenses 776 458 318 69
−Removed: Adjusted operating earnings $ 100 $ 325 $ (225) (69) %
−Removed: NM Not Meaningful.
−Removed: Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts decreased $225 million, or 69%, for the three months ended September 30, 2023 compared to prior year period due to the impact of unlocking.
−Removed: Variable annuity account balances increased 5% to $75.1 billion as of September 30, 2023 compared to the prior year period due to market appreciation, partially offset by net outflows of $2.8 billion.
−Removed: Variable annuity sales increased 18% compared to the prior year period reflecting an increase in sales of structured variable annuities.
−Removed: Account values with living benefit riders declined to 55% as of September 30, 2023 compared to 58% a year ago reflecting our actions to optimize our business mix.
−Removed: This trend is expected to continue and meaningfully shift the mix of business away from products with living benefit guarantees over time.
−Removed: Net investment income, which excludes net realized investment gains or losses, increased $64 million, or 42%, for the three months ended September 30, 2023 compared to the prior year period primarily due to higher interest rates, investment portfolio repositioning resulting in higher yields and increased structured variable annuities (“SVA”) balances.
−Removed: Premiums, policy and contract charges increased $33 million, or 10%, for the three months ended September 30, 2023 compared to the prior year period due to higher sales of life contingent payout annuities.
−Removed: Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, increased $55 million, or 49%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the impact of higher sales of life contingent payout annuities and increased volume in SVAs, partially offset by the favorable impact of unlocking.
−Removed: Change in fair value of market risk benefits, which exclude the market impact on variable annuity guaranteed benefits (net of hedges), increased $270 million, for the three months ended September 30, 2023 compared to the prior year period reflecting the impact of
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: The unlocking impact for three months ended September 30, 2023 was an expense of $128 million primarily reflecting lower surrender assumptions on variable annuities with living benefits compared to a benefit of $139 million for the prior year period primarily reflecting the impact of interest rate assumptions, partially offset by lower surrender assumptions and updated mortality assumptions for variable annuities with living benefits.
−Removed: Corporate & Other
−Removed: The following table presents the results of operations of our Corporate & Other segment on an adjusted operating basis:
−Removed: Three Months Ended September 30,
−Removed: (in millions)
−Removed: Distribution fees $ 1 $ — $ 1 — %
−Removed: Net investment income 71 35 36 NM
−Removed: Premiums, policy and contract charges 25 25 — —
−Removed: Other revenues 52 57 (5) (9)
−Removed: Total revenues 149 117 32 27
−Removed: Banking and deposit interest expense 6 2 4 NM
−Removed: Total net revenues 143 115 28 24
−Removed: Distribution expenses (3) (2) (1) (50)
−Removed: Interest credited to fixed accounts 59 61 (2) (3)
−Removed: Benefits, claims, losses and settlement expenses 59 67 (8) (12)
−Removed: Remeasurement (gains) losses of future policy benefit reserves (2) (6) 4 67
−Removed: Amortization of deferred acquisition costs 4 — 4 —
−Removed: Interest and debt expense 28 17 11 65
−Removed: General and administrative expense 70 56 14 25
−Removed: Total expenses 215 193 22 11
−Removed: Adjusted operating loss $ (72) $ (78) $ 6 8 %
−Removed: NM Not Meaningful.
−Removed: Our Corporate & Other segment includes our closed blocks of LTC insurance and fixed annuity and fixed indexed annuity (“FA”) business.
−Removed: Our Corporate & Other segment pretax adjusted operating loss excludes net realized investment gains or losses, the market impact on fixed annuity benefits (net of hedges), the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impact, gain or loss on disposal of a business that is not considered discontinued operations, integration and restructuring charges, and the impact of consolidating CIEs.
−Removed: Our Corporate & Other segment pretax adjusted operating loss decreased $6 million for the three months ended September 30, 2023 compared to the prior year period.
−Removed: LTC insurance had a pretax adjusted operating earnings of $10 million for the three months ended September 30, 2023 compared to pretax adjusted operating earnings of nil for the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.
−Removed: FA business had a pretax adjusted operating loss of $8 million for the three months ended September 30, 2023 compared to a pretax adjusted operating loss of $5 million for the prior year period.
−Removed: Fixed deferred annuity account balances declined 11% to $6.5 billion as of September 30, 2023 compared to the prior year period as policies continue to lapse and we previously discontinued new sales of fixed deferred annuities.
−Removed: Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impacts, integration and restructuring charges, and the impact of consolidating CIEs, increased $36 million for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: Interest and debt expense increased $11 million, or 65%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the issuance of $750 million of unsecured senior notes in March 2023.
−Removed: General and administrative expense increased $14 million, or 25%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting $7 million of severance expenses related to our expense management initiatives and are designed to improve operating efficiency and effectiveness.
−Removed: Consolidated Results of Operations for the Nine Months Ended September 30, 2023 and 2022
−Removed: The following table presents our consolidated results of operations:
−Removed: Nine Months Ended September 30,
−Removed: (in millions)
−Removed: Management and financial advice fees $ 6,623 $ 6,908 $ (285) (4) %
−Removed: Distribution fees 1,462 1,411 51 4
−Removed: Net investment income 2,318 897 1,421 NM
−Removed: Premiums, policy and contract charges 1,135 1,034 101 10
−Removed: Other revenues 390 365 25 7
−Removed: Total revenues 11,928 10,615 1,313 12
−Removed: Banking and deposit interest expense 385 20 365 NM
−Removed: Total net revenues 11,543 10,595 948 9
−Removed: Distribution expenses 3,771 3,737 34 1
−Removed: Interest credited to fixed accounts 464 443 21 5
−Removed: Benefits, claims, losses and settlement expenses 748 (83) 831 NM
−Removed: Remeasurement (gains) losses of future policy benefit reserves (17) (6) (11) NM
−Removed: Change in fair value of market risk benefits 558 298 260 87
−Removed: Amortization of deferred acquisition costs 185 190 (5) (3)
−Removed: Interest and debt expense 240 136 104 76
−Removed: General and administrative expense 2,854 2,766 88 3
−Removed: Total expenses 8,803 7,481 1,322 18
−Removed: Pretax income
−Removed: 2,740 3,114 (374) (12)
−Removed: Income tax provision 561 614 (53) (9)
−Removed: Net income $ 2,179 $ 2,500 $ (321) (13) %
−Removed: NM Not Meaningful.
−Removed: Pretax income decreased $374 million, or 12%, for the nine months ended September 30, 2023 compared to the prior year period.
−Removed: • The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was an expense of $137 million for the nine months ended September 30, 2023 compared to a benefit of $566 million for the prior year period.
−Removed: • The unfavorable impact of unlocking was $99 million for the nine months ended September 30, 2023 compared to a favorable impact of $133 million for the prior year period.
−Removed: • An unfavorable impact from the cumulative impact of Asset Management net outflows.
−Removed: • A favorable impact from the trend in rising interest rates on the investment portfolio yield, including from investment portfolio repositioning in our insurance business in the fourth quarter of 2022, along with higher balances in bank and certificate products.
−Removed: See our Consolidated Results of Operations for the three months ended September 30, 2023 and 2022 for a table and discussion of total pretax impacts on our revenues and expenses attributable to unlocking.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: Management and financial advice fees decreased $285 million, or 4%, for the nine months ended September 30, 2023 compared to the prior year period reflecting the cumulative impact of Asset Management net outflows, fixed income market depreciation and a decrease in performance fees of $47 million, partially offset by continued wrap account net inflows.
−Removed: Distribution fees increased $51 million, or 4%, for the nine months ended September 30, 2023 compared to the prior year period due to $88 million of higher fees on off-balance sheet brokerage cash due to an increase in short-term interest rates, partially offset by the cumulative impact of net outflows.
−Removed: Net investment income increased $1.4 billion for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting:
−Removed: • The favorable impact of growth in Ameriprise Bank customer deposits and certificate business as a result of the market environment and our strategic decision to invest in these businesses.
−Removed: • The favorable impact of the trend in rising interest rates on the investment portfolio yield, including from investment portfolio repositioning in our insurance business in the fourth quarter of 2022.
−Removed: • The favorable impact of higher net investment income of CIEs.
−Removed: • The favorable impact of net realized investment losses of $27 million for the nine months ended September 30, 2023 compared to net realized investment losses of $82 million for the prior year period.
−Removed: Net realized investment losses for nine months ended September 30, 2023 were primarily driven by the continued fixed maturity investment portfolio repositioning.
−Removed: Net realized investment losses for nine months ended September 30, 2022 were primarily driven by the fixed maturity investment portfolio repositioning in response to market conditions.
−Removed: Premiums, policy and contract charges increased $101 million, or 10%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to higher sales of life contingent payout annuities.
−Removed: Banking and deposit interest expense increased $365 million for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and Ameriprise Bank cash deposits.
−Removed: Interest credited to fixed accounts increased $21 million, or 5%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the following items:
−Removed: • A $48 million increase in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits.
−Removed: The favorable impact of the nonperformance credit spread was $6 million for the nine months ended September 30, 2023 compared to a favorable impact of $54 million for the prior year period.
−Removed: • A $13 million decrease in expense from other market impacts on IUL benefits, net of hedges, which was an expense of $16 million for the nine months ended September 30, 2023 compared to an expense of $29 million for the prior year period.
−Removed: The decrease in expense was primarily due to an increase in the IUL embedded derivative in the prior period, which reflected higher option costs due to a higher new money rate, offset by more discounting due to higher Treasury rates.
−Removed: Benefits, claims, losses and settlement expenses increased $831 million, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the following items:
−Removed: • A $643 million increase in expense from market impacts on SVA embedded derivative, net of hedges in place to offset those risks.
−Removed: This increase was the result of a favorable $746 million change in the market impact on derivatives hedging the SVA embedded derivative and an unfavorable $1.4 billion change in the market impact on SVA embedded derivative.
−Removed: The main market driver contributing to these changes was the equity market impact on the SVA embedded derivative net of the impact on the corresponding hedge assets resulted in an expense for the nine months ended September 30, 2023 compared to a benefit in the prior year period.
−Removed: • The impact of higher sales of life contingent payout annuities.
−Removed: • The impact of increased volume in SVAs.
−Removed: Change in fair value of market risk benefits increased $260 million, or 87%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the following items:
−Removed: • The impact of unlocking was an expense of $128 million for nine months ended September 30, 2023 primarily reflecting the impact of lower surrender assumptions on variable annuities with living benefits compared to a benefit of $139 million for the prior year period primarily reflecting the impact of interest rate assumptions, partially offset by lower surrender assumptions and updated mortality assumptions for variable annuities with living benefits.
−Removed: • A $29 million decrease in expense from market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks.
−Removed: This decrease was the result of a favorable $870 million change in the market impact on variable annuity guaranteed
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: benefits reserves and an unfavorable $841 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits.
−Removed: The main market drivers contributing to these changes are summarized below:
−Removed: • Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the nine months ended September 30, 2023 compared to an expense in the prior year period.
−Removed: • Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower benefit for the nine months ended September 30, 2023 compared to the prior year period.
−Removed: • Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the nine months ended September 30, 2023 compared to the prior year period.
−Removed: • Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a lower net expense for the nine months ended September 30, 2023 compared to the prior year period.
−Removed: Interest and debt expense increased $104 million, or 76%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting higher interest expense of CIEs and the issuance of $750 million of unsecured senior notes in March 2023.
−Removed: General and administrative expense increased $88 million, or 3%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting a $20 million accrual for a regulatory matter relating to electronic communication recordkeeping requirements, higher volume related expenses and investments for business growth, $12 million of higher integration related expenses and an unfavorable change in the mark-to-market impact on share-based compensation.
−Removed: A portion of the higher integration related expenses was driven by the consolidation of the majority of our London-based teams into a single location following the acquisition of the BMO Global Asset Management (EMEA) business.
−Removed: Our effective tax rate was 20.5% for the nine months ended September 30, 2023 compared to 19.7% for the prior year period.
−Removed: See Note 17 to our Consolidated Financial Statements for additional discussion on income taxes.
−Removed: Results of Operations by Segment for the Nine Months Ended September 30, 2023 and 2022
−Removed: The following table presents summary financial information by segment:
−Removed: Nine Months Ended September 30,
−Removed: (in millions)
−Removed: Advice & Wealth Management
−Removed: Net revenues $ 7,015 $ 6,235
−Removed: Expenses 4,862 4,708
−Removed: Adjusted operating earnings $ 2,153 $ 1,527
−Removed: Asset Management
−Removed: Net revenues $ 2,433 $ 2,721
−Removed: Expenses 1,907 2,023
−Removed: Adjusted operating earnings $ 526 $ 698
−Removed: Retirement & Protection Solutions
−Removed: Net revenues $ 2,558 $ 2,311
−Removed: Expenses 2,075 1,643
−Removed: Adjusted operating earnings $ 483 $ 668
−Removed: Corporate & Other
−Removed: Net revenues $ 417 $ 350
−Removed: Expenses 623 569
−Removed: Adjusted operating loss $ (206) $ (219)
−Removed: See our Results of Operations by Segment for the nine months ended September 30, 2023 and 2022 for a table of segment pretax adjusted operating impacts on our revenues and expenses attributable to unlocking.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: Advice & Wealth Management
−Removed: The following table presents the changes in wrap account assets and average balances for the nine months ended September 30:
−Removed: (in billions)
−Removed: Beginning balance $ 412.1 $ 464.7
−Removed: Net flows 17.3 21.3
−Removed: Market appreciation (depreciation) and other 14.7 (100.8)
−Removed: Ending balance $ 444.1 $ 385.2
−Removed: Advisory wrap account assets ending balance (1)
−Removed: $ 439.3 $ 381.1
−Removed: Average advisory wrap account assets (2)
−Removed: $ 435.6 $ 426.4
−Removed: (1) Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts.
−Removed: Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.
−Removed: (2) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period excluding the most recent month for the nine months ended September 30, 2023 and 2022.
−Removed: Ending wrap account assets increased $32.0 billion, or 8%, to $444.1 billion during the nine months ended September 30, 2023 due to market appreciation and other of $14.7 billion and net inflows of $17.3 billion.
−Removed: Average advisory wrap account assets increased $9.2 billion, or 2%, compared to the prior year period primarily reflecting net inflows.
−Removed: The following table presents the results of operations of our Advice & Wealth Management segment on an adjusted operating basis:
−Removed: Nine Months Ended September 30,
−Removed: (in millions)
−Removed: Management and financial advice fees $ 4,077 $ 4,017 $ 60 1 %
−Removed: Distribution fees 1,714 1,650 64 4
−Removed: Net investment income 1,409 417 992 NM
−Removed: Other revenues 200 171 29 17
−Removed: Total revenues 7,400 6,255 1,145 18
−Removed: Banking and deposit interest expense 385 20 365 NM
−Removed: Total net revenues 7,015 6,235 780 13
−Removed: Distribution expenses 3,622 3,566 56 2
−Removed: Interest and debt expense 19 8 11 NM
−Removed: General and administrative expense 1,221 1,134 87 8
−Removed: Total expenses 4,862 4,708 154 3
−Removed: Adjusted operating earnings $ 2,153 $ 1,527 $ 626 41 %
−Removed: NM Not Meaningful.
−Removed: Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $626 million, or 41%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting higher short-term interest rates and growth in bank cash deposits and certificate products along with the cumulative impact of client net flows, partially offset by market depreciation.
−Removed: Pretax adjusted operating margin was 30.7% for the for the nine months ended September 30, 2023 compared to 24.5% for the prior year period.
−Removed: Management and financial advice fees increased $60 million, or 1%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to higher average wrap account assets.
−Removed: Average advisory wrap account assets increased $9.2 billion, or 2%, compared to the prior year period primarily reflecting net inflows.
−Removed: Distribution fees increased $64 million, or 4%, for the nine months ended September 30, 2023 compared to the prior year period reflecting $88 million of higher fees on off-balance sheet brokerage cash, primarily due to an increase in short-term interest rates.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: Net investment income, which excludes net realized investment gains or losses, increased $992 million, for the nine months ended September 30, 2023 compared to the prior year period primarily due to higher average invested assets due to increased bank and certificate deposits and the favorable impact of increased short-term interest rates, including higher investment yields on the investment portfolio supporting the bank and certificate products.
−Removed: Banking and deposit interest expense increased $365 million for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and bank cash deposits.
−Removed: Distribution expenses increased $56 million, or 2%, for the nine months ended September 30, 2023 compared to the prior year period reflecting higher asset-based advisor compensation from higher average wrap account assets and increased investments in recruiting experienced advisors.
−Removed: Interest and debt expense increased $11 million for the nine months ended September 30, 2023 compared to the prior year period due to the increase in capital supporting the growth in the bank and certificate products.
−Removed: General and administrative expense increased $87 million, or 8%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to a $20 million accrual for a regulatory matter relating to electronic communication recordkeeping requirements, higher volume related expenses and investments for business growth.
−Removed: Asset Management
−Removed: The following table presents global managed assets by type:
−Removed: As of September 30,
−Removed: Change Nine Months Ended September 30,
+Added: As of March 31,
+Added: Change Three Months Ended March 31,
(in billions)
8 unchanged sentences
The following table presents the changes in global managed assets:
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
(in billions)
5 unchanged sentences
Net new flows
−Removed: (16.7) (18.6)
Reinvested dividends 1.0 0.9
7 unchanged sentences
(12.2) (10.7)
−Removed: Net flows (1)
Market appreciation (depreciation) and other (3)
5 unchanged sentences
$ (0.8) $ (0.8)
−Removed: (1) First quarter 2022 net flows included $2.5 billion of retail and $0.1 billion of institutional net flows from the U.S.
−Removed: asset transfer in connection with our acquisition of the BMO Global Asset Management (EMEA) business.
(1) Amounts represent local currency to US dollar translation for reporting purposes.
2 unchanged sentences
(4) Legacy insurance partners assets and net flows are included in the rollforwards above.
−Removed: Total segment AUM increased $3.2 billion, or 1%, during the nine months ended September 30, 2023 primarily due to equity market appreciation.
−Removed: Net outflows were $12.0 billion for the nine months ended September 30, 2023, a decrease of $5.9 billion compared to the prior year period.
+Added: Total segment AUM increased $15.2 billion, or 2%, during the three months ended March 31, 2024 primarily due to equity market appreciation, partially offset by net outflows.
AMERIPRISE FINANCIAL, INC.
The following table presents the results of operations of our Asset Management segment on an adjusted operating basis:
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
(in millions)
1 unchanged sentence
Distribution fees 95 90 5 6
−Removed: Net investment income 29 6 23 NM
−Removed: Other revenues 22 10 12 NM
+Added: Net investment income 11 9 2 22
+Added: Other revenues 7 6 1 17
Total revenues 855 799 56 7
2 unchanged sentences
Distribution expenses 242 230 12 5
−Removed: Amortization of deferred acquisition costs 4 8 (4) (50)
+Added: Amortization of deferred acquisition costs 2 1 1 NM
Interest and debt expense 2 2 — —
2 unchanged sentences
Adjusted operating earnings $ 206 $ 165 $ 41 25 %
−Removed: NM Not Meaningful.
−Removed: Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, decreased $172 million, or 25%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to the cumulative impact of net outflows, fixed income market depreciation, and lower performance fees.
−Removed: Management and financial advice fees decreased $288 million, or 12%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows, fixed income market depreciation, and a decrease in performance fees of $47 million.
−Removed: Distribution fees decreased $35 million, or 11%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows.
−Removed: Net investment income increased $23 million, for the nine months ended September 30, 2023 compared to the prior year period primarily driven by higher interest rates.
−Removed: Distribution expenses decreased $70 million, or 9%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows.
−Removed: General and administrative expense decreased $44 million, or 4%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting lower performance fee related compensation and disciplined expense management.
+Added: NM Not Meaningful - variance equal to or greater than 100%.
+Added: Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $41 million, or 25%, for the three months ended March 31, 2024 compared to the prior year period primarily due to equity market appreciation, partially offset by the cumulative impact from net outflows.
+Added: Management and financial advice fees increased $48 million, or 7%, for the three months ended March 31, 2024 compared to the prior year period primarily due to equity market appreciation and an increase in performance fees, partially offset by the cumulative impact from net outflows.
+Added: Distribution fees increased $5 million, or 6%, for the three months ended March 31, 2024 compared to the prior year period primarily due to market appreciation.
+Added: Distribution expenses increased $12 million, or 5%, for the three months ended March 31, 2024 compared to the prior year period primarily due to market appreciation, partially offset by the cumulative impact from net outflows.
AMERIPRISE FINANCIAL, INC.
1 unchanged sentence
The following table presents the results of operations of our Retirement & Protection Solutions segment on an adjusted operating basis:
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
(in millions)
10 unchanged sentences
Benefits, claims, losses and settlement expenses 224 162 62 38
−Removed: Remeasurement (gains) losses of future policy benefit reserves (17) (5) (12) NM
−Removed: Change in fair value of market risk benefits 497 249 248 NM
+Added: Remeasurement (gains) losses of future policy benefit reserves (2) (3) 1 33
+Added: Change in fair value of market risk benefits 129 115 14 12
Amortization of deferred acquisition costs 57 58 (1) (2)
3 unchanged sentences
Adjusted operating earnings $ 199 $ 194 $ 5 3 %
−Removed: NM Not Meaningful.
−Removed: Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts decreased $185 million, or 28%, for the nine months ended September 30, 2023 compared to the prior year period.
−Removed: Management and financial advice fees decreased $50 million, or 8%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows and market depreciation.
−Removed: Distribution fees decreased $22 million, or 7%, for the nine months ended September 30, 2023 compared to the prior year period due to the cumulative impact from net outflows and market depreciation.
−Removed: Net investment income, which excludes net realized investment gains or losses, increased $224 million, or 58%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to higher interest rates, investment portfolio repositioning resulting in higher yields and increased SVA balances.
−Removed: Premiums, policy and contract charges increased $98 million, or 10%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to higher sales of life contingent payout annuities.
−Removed: Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, increased $188 million, or 57%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the impact of higher sales of life contingent payout annuities and increased volume in SVAs.
−Removed: Change in fair value of market risk benefits, which exclude the market impact on variable annuity guaranteed benefits (net of hedges), increased $248 million, for the nine months ended September 30, 2023 compared to the prior year period reflecting market depreciation on contractual fees and the impact of unlocking.
−Removed: The unlocking impact for nine months ended September 30, 2023 was an expense of $128 million primarily reflecting the lower surrender assumptions on variable annuities with living benefits compared to a
+Added: Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $5 million, or 3%, for the three months ended March 31, 2024 compared to the prior year period, primarily reflecting higher interest rates and market appreciation, partially offset by higher expenses associated with increased sales.
+Added: Variable annuity account balances increased 9% to $84.0 billion as of March 31, 2024 compared to the prior year period due to market appreciation, partially offset by net outflows of $3.2 billion.
+Added: Variable annuity sales increased 32% compared to the prior year period reflecting an increase in sales of SVAs.
+Added: Account values with living benefit riders declined to 53% as of March 31, 2024 compared to 57% a year ago reflecting our actions to optimize our business mix.
+Added: This trend is expected to continue and meaningfully shift the mix of business away from products with living benefit guarantees over time.
+Added: Management and financial advice fees increased $6 million, or 3%, for the three months ended March 31, 2024 compared to the prior year period primarily due to market appreciation, partially offset by the impact from variable annuity net outflows.
+Added: Distribution fees increased $7 million, or 7%, for the three months ended March 31, 2024 compared to the prior year period primarily due to market appreciation.
+Added: Net investment income, which excludes net realized investment gains or losses, increased $48 million, or 25%, for the three months ended March 31, 2024 compared to the prior year period primarily due to higher interest rates and increased SVA balances.
+Added: Premiums, policy and contract charges increased $28 million, or 8%, for the three months ended March 31, 2024 compared to the prior year period primarily due to higher sales of life contingent payout annuities.
+Added: Distribution expenses increased $14 million, or 13%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting market appreciation and higher sales of SVAs.
AMERIPRISE FINANCIAL, INC.
−Removed: benefit of $139 million for the prior year period primarily reflecting the impact of interest rate assumptions, partially offset by lower surrender assumptions and updated mortality assumptions for variable annuities with living benefits.
−Removed: General and administrative expense increased $15 million, or 7%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting higher one-time related expenses, timing, and a modest increase in core expenses.
+Added: Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, increased $62 million, or 38%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the impact of higher sales of life contingent payout annuities and increased volume in SVAs.
+Added: Change in fair value of market risk benefits, which exclude the market impact on variable annuity guaranteed benefits (net of hedges), increased $14 million, or 12%, for the three months ended March 31, 2024 compared to the prior year period reflecting market appreciation on contractual fees.
+Added: General and administrative expense decreased $9 million, or 10%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting higher one-time expenses in the prior year period.
Corporate & Other
The following table presents the results of operations of our Corporate & Other segment on an adjusted operating basis:
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
(in millions)
−Removed: Distribution fees $ 1 $ — $ 1 — %
Net investment income $ 58 $ 51 $ 7 14 %
7 unchanged sentences
Benefits, claims, losses and settlement expenses 53 58 (5) (9)
−Removed: Remeasurement (gains) losses of future policy benefit reserves — (1) 1 NM
+Added: Remeasurement (gains) losses of future policy benefit reserves (2) (2) — —
Amortization of deferred acquisition costs 2 3 (1) (33)
3 unchanged sentences
Adjusted operating loss $ (89) $ (74) $ (15) (20) %
−Removed: NM Not Meaningful.
+Added: NM Not Meaningful - variance equal to or greater than 100%.
+Added: Our Corporate & Other segment includes our closed blocks of long term care (“LTC”) insurance and fixed annuity and fixed indexed annuity (“FA”) business.
Our Corporate & Other segment pretax adjusted operating loss excludes net realized investment gains or losses, the market impact on fixed index annuity benefits (net of hedges), the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impact, gain or loss on disposal of a business that is not considered discontinued operations, integration and restructuring charges, and the impact of consolidating CIEs.
−Removed: Our Corporate & Other segment pretax adjusted operating loss decreased $13 million, or 6%, for the nine months ended September 30, 2023 compared to the prior year period.
−Removed: LTC insurance had a pretax adjusted operating earnings of $19 million for the nine months ended September 30, 2023 compared to a pretax adjusted operating loss of $11 million for the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.
−Removed: FA business had a pretax adjusted operating loss of $22 million for the nine months ended September 30, 2023 compared to a pretax adjusted operating loss of $15 million for the prior year period.
−Removed: Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, integration and restructuring charges, and the impact of consolidating CIEs, increased $91 million, or 85%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions.
−Removed: Interest and debt expense increased $27 million, or 56%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the issuance of $750 million of unsecured senior notes in March 2023.
+Added: Our Corporate & Other segment pretax adjusted operating loss increased $15 million, or 20%, for the three months ended March 31, 2024 compared to the prior year period.
+Added: LTC insurance had pretax adjusted operating earnings of $16 million for the three months ended March 31, 2024 compared to pretax adjusted operating earnings of $8 million for the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.
+Added: The FA business had a pretax adjusted operating loss of $6 million for the three months ended March 31, 2024 compared to a pretax adjusted operating loss of $9 million for the prior year period.
+Added: Fixed deferred annuity account balances declined 11% to $6.1 billion as of March 31, 2024 compared to the prior year period as policies continue to lapse and we previously discontinued new sales of fixed deferred annuities.
AMERIPRISE FINANCIAL, INC.
−Removed: General and administrative expense, which excludes integration and restructuring charges, increased $38 million, or 24%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the unfavorable mark-to-market impact on share-based compensation expense and increased severance expense related to our expense management initiatives.
+Added: Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, integration and restructuring charges, and the impact of consolidating CIEs, increased $7 million, or 14%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting higher interest rates on cash positions.
+Added: Other revenues decreased $7 million, or 13%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the yield on deposit receivables arising from reinsurance transactions.
+Added: Interest and debt expense increased $7 million, or 39%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the issuance of $750 million and $600 million of unsecured senior notes in March 2023 and November 2023, respectively, partially offset by the maturity of $750 million of unsecured senior notes in October 2023.
+Added: General and administrative expense, which excludes integration and restructuring charges, increased $15 million, or 23%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the unfavorable mark-to-market impact on share-based compensation expense due to share price appreciation, increased severance expense related to our expense management initiatives and a lease write-down.
Fair Value Measurements
13 unchanged sentences
Consistent with general market conditions, this estimate resulted in a spread over the U.S.
−Removed: Treasury curve as of September 30, 2023.
+Added: Treasury curve as of March 31, 2024.
As our estimate of this spread widens or tightens, the liability will decrease or increase, respectively.
If this nonperformance credit spread moves to a zero spread over the U.S.
−Removed: Treasury curve, the reduction to total equity would be approximately $812 million, net of the reinsurance accrual and income taxes (calculated at the statutory tax rate of 21%), based on September 30, 2023 credit spreads.
+Added: Treasury curve, the reduction to future total equity would be approximately $605 million, net of the reinsurance accrual and income taxes (calculated at the statutory tax rate of 21%), based on March 31, 2024 credit spreads.
Liquidity and Capital Resources
−Removed: As of both September 30, 2023 and December 31, 2022, we had Available Capital for Capital Adequacy of $5.2 billion.
+Added: As of March 31, 2024 and December 31, 2023, we had Available Capital for Capital Adequacy of $5.1 billion and $5.4 billion, respectively.
Available Capital for Capital Adequacy best reflects the available capital resources of our core operations.
−Removed: We maintained substantial liquidity during the nine months ended September 30, 2023.
−Removed: As of both September 30, 2023 and December 31, 2022, we had $7.0 billion in cash and cash equivalents excluding CIEs and other restricted cash on a consolidated basis.
−Removed: As of September 30, 2023 and December 31, 2022, the parent company had $728 million and $389 million, respectively, in cash, cash equivalents, and unencumbered liquid securities.
+Added: We maintained substantial liquidity during the three months ended March 31, 2024.
+Added: As of March 31, 2024 and December 31, 2023, we had $7.1 billion and $7.5 billion, respectively, in cash and cash equivalents excluding CIEs and other restricted cash on a consolidated basis.
+Added: As of March 31, 2024 and December 31, 2023, the parent company had $727 million and $544 million, respectively, in cash, cash equivalents, and unencumbered liquid securities.
Liquid securities predominantly include U.S.
1 unchanged sentence
Additional sources of liquidity at the parent company include a line of credit with an affiliate up to $714 million and an unsecured revolving committed credit facility for up to $1.0 billion that expires in June 2026.
−Removed: Management’s estimate of liquidity available to the parent company in a volatile and uncertain economic environment as of September 30, 2023 was $1.9 billion which includes cash, cash equivalents, unencumbered liquid securities, the line of credit with an affiliate and a portion of the committed credit facility.
+Added: Management’s estimate of liquidity available to the parent company in a volatile and uncertain economic environment as of March 31, 2024 was $1.9 billion which includes cash, cash equivalents, unencumbered liquid securities, the line of credit with an affiliate and a portion of the committed credit facility.
Under the terms of the committed credit facility, we can increase the availability to $1.25 billion upon satisfaction of certain approval requirements.
Available borrowings under this facility are reduced by any outstanding letters of credit.
−Removed: At September 30, 2023, we had no outstanding borrowings under this credit facility and had $1 million of letters of credit issued against the facility.
−Removed: Our credit facility contains various administrative, reporting, legal and financial covenants.
−Removed: We remained in compliance with all such covenants at September 30, 2023.
+Added: At March 31, 2024, we had no outstanding borrowings under this credit facility and had $1 million of letters of credit issued against the facility.
+Added: Our credit facility
+Added: AMERIPRISE FINANCIAL, INC.
+Added: contains various administrative, reporting, legal and financial covenants.
+Added: We remained in compliance with all such covenants at March 31, 2024.
In addition, we have access to collateralized borrowings, which may include repurchase agreements, Federal Home Loan Bank (“FHLB”) advances, and advances at the Federal Reserve.
−Removed: Our subsidiaries, RiverSource Life Insurance Company (“RiverSource Life”), and Ameriprise Bank, FSB are members of the FHLB of Des Moines, which provides access to collateralized borrowings.
−Removed: As of September 30, 2023 and December 31, 2022, we had $8.1 billion and $8.0 billion, respectively, of estimated borrowing capacity under the FHLB facilities, of which $201 million was outstanding as of both September 30, 2023 and December 31, 2022, and is collateralized with commercial mortgage backed securities.
−Removed: In addition, Ameriprise Bank, FSB maintains access to borrowings from the Federal Reserve which are collateralized with residential mortgage backed securities, commercial mortgage backed securities and corporate debt securities.
−Removed: As of September 30, 2023 and December 31, 2022, we estimated $11.8 billion and $9.0 billion, respectively, of borrowing capacity from the Federal Reserve in addition to the FHLB capacity and there were no outstanding obligations.
+Added: Our subsidiaries, RiverSource Life Insurance Company (“RiverSource Life”), and Ameriprise Bank are members of the FHLB of Des Moines, which provides access to collateralized borrowings.
+Added: As of both March 31, 2024 and December 31, 2023, we had $8.6 billion of estimated borrowing capacity under the FHLB facilities, of which $201 million was outstanding as of both March 31, 2024 and December 31, 2023, and is collateralized with commercial mortgage backed securities.
+Added: In addition, Ameriprise Bank maintains access to borrowings from the Federal Reserve which are collateralized with residential mortgage backed securities, commercial mortgage backed securities and corporate debt securities.
+Added: As of March 31, 2024 and December 31, 2023, we estimated $12.4 billion and $12.3 billion, respectively, of borrowing capacity from the Federal Reserve in addition to the FHLB capacity and there were no outstanding obligations.
There have been no material changes to our contractual obligations disclosed in our 2023 10-K.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: We issued $750 million of 5.15% unsecured senior notes on March 9, 2023.
−Removed: We repaid $750 million principal amount of our 4.0% senior notes at maturity on October 16, 2023.
−Removed: See Note 12 to our Consolidated Financial Statements for further information about our long-term debt maturities, including $550 million maturing within the 2024 calendar year.
+Added: See Note 11 to our Consolidated Financial Statements for further information about our long-term debt maturities, including $550 million maturing in October 2024.
We believe cash flows from operating activities, available cash balances, our availability of internal and external borrowings, access to debt markets, and dividends from our subsidiaries will be sufficient to fund our short-term and long-term operating liquidity needs and stress requirements.
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We have evaluated the tax provisions of the IRA, the most significant of which are the corporate alternative minimum tax (“CAMT”) and the share repurchase excise tax.
−Removed: Both the CAMT and share repurchase tax are effective beginning in 2023.
+Added: Both the CAMT and share repurchase tax were effective beginning in 2023.
We are an applicable corporation required to compute CAMT;
−Removed: however, based on current estimates, we do not believe we will be liable for the CAMT in 2023 and therefore have not recorded a liability.
+Added: however, based on current estimates, we do not expect to be liable for the CAMT in 2024 and therefore have not recorded a liability.
We are a covered corporation subject to the 1% excise tax on the net shares repurchased.
+Added: We have recorded in shareholders’ equity an estimate of the excise tax liability based on our interpretation of the current guidance.
As the Internal Revenue Service issues additional guidance related to the IRA, we will continue to evaluate any impact to our consolidated financial statements.
+Added: In December 2021, the Organization for Economic Co-operation and Development published the Pillar Two model rules which introduce new taxing mechanisms aimed at ensuring multinational enterprises pay a minimum level of tax on profits from each jurisdiction in which they operate.
+Added: Various jurisdictions in which we operate have enacted or substantively enacted Pillar Two legislation that became effective beginning January 1, 2024.
+Added: We intend to rely on Pillar Two transitional safe harbors where available and, based on the current estimate, have not recorded any Pillar Two tax liabilities.
+Added: We continue to monitor the adoption and implementation of these rules and evaluate the potential impact on our consolidated financial statements.
Dividends from Subsidiaries
Ameriprise Financial is primarily a parent holding company for the operations carried out by our wholly-owned subsidiaries.
−Removed: Because of our holding company structure, our ability to meet our cash requirements, including the payment of dividends on our common stock, substantially depends upon the receipt of dividends or return of capital from our subsidiaries, particularly our life insurance subsidiary, RiverSource Life, our face-amount certificate subsidiary, Ameriprise Certificate Company (“ACC”), AMPF Holding, LLC, which is the parent company of our retail introducing broker-dealer subsidiary, Ameriprise Financial Services, LLC (“AFS”) and our clearing broker-dealer subsidiary, American Enterprise Investment Services, Inc.
−Removed: (“AEIS”), our transfer agent subsidiary, Columbia Management Investment Services Corp., our investment advisory company, Columbia Management Investment Advisers, LLC, TAM UK International Holdings Ltd, which includes Ameriprise International Holdings GmbH within its organizational structure, and Columbia Threadneedle Investments UK International Ltd.
+Added: Because of our holding company structure, our ability to meet our cash requirements, including the payment of dividends on our common stock, substantially depends upon the receipt of dividends or return of capital from our subsidiaries, particularly our life insurance subsidiary, RiverSource Life, our face-amount certificate subsidiary, Ameriprise Certificate Company (“ACC”), Ameriprise Bank, AMPF Holding, LLC, which is the parent company of our retail introducing broker-dealer subsidiary, Ameriprise Financial Services, LLC (“AFS”) and our clearing broker-dealer subsidiary, American Enterprise Investment Services, Inc.
+Added: (“AEIS”), our transfer agent subsidiary, Columbia Management Investment Services Corp.
+Added: (“CMIS”), our investment advisory company, Columbia Management Investment Advisers, LLC (“CMIA”), TAM UK International Holdings Ltd, which includes Ameriprise International Holdings GmbH within its organizational structure, and Columbia Threadneedle Investments UK International Ltd.
The payment of dividends by many of our subsidiaries is restricted and certain of our subsidiaries are subject to regulatory capital requirements.
+Added: For example, RiverSource Life payments in excess of statutory unassigned funds require advanced notice to the Minnesota Department of Commerce (“MN DOC”), RiverSource Life’s primary regulator, and are subject to potential disapproval.
+Added: In addition, dividends and other distributions whose fair market value, together with that of other dividends or distributions made within the preceding 12 months, exceeds the greater of the previous year’s statutory net gain from operations or 10% of the previous year-end statutory capital and surplus are referred to as “extraordinary dividends.” Extraordinary dividends also require advanced notice to MN DOC, and are subject to potential disapproval.
+Added: Our broker-dealer subsidiaries are subject to the Uniform Net Capital Rule (Rule 15c3-1) under the Securities Exchange Act of 1934.
+Added: Rule 15c3-1 provides an “alternative net capital requirement” which AEIS and AFS (significant broker dealers) have elected.
+Added: Regulations require that minimum net capital, as defined, be equal to the greater of $250 thousand or 2% of aggregate debit items arising from client balances.
+Added: The Financial Industry Regulatory Authority (“FINRA”) may impose certain restrictions, such as restricting withdrawals of equity capital, if a member firm were to fall below a certain threshold or fail to meet minimum net capital requirements.
+Added: AMERIPRISE FINANCIAL, INC.
+Added: Ameriprise Bank is subject to regulation by the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation in its role as insurer of its deposits.
+Added: Ameriprise Bank is required to maintain minimum amounts and ratios of Total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), Tier 1 Capital to average assets (as defined), and under rules defined under the Basel III capital framework, Common equity Tier 1 capital (“CEIT”) to risk-weighted assets.
+Added: Ameriprise Bank calculates these ratios under the Basel III standardized approach in order to assess compliance with both regulatory requirements and Ameriprise Bank’s internal capital policies.
+Added: As permitted under the rules of the Basel III capital framework, we have elected to exclude AOCI from the calculation of regulatory capital.
+Added: ACC is registered as an investment company under the Investment Company Act of 1940 (the “1940 Act”).
+Added: ACC markets and sells investment certificates to clients.
+Added: ACC is subject to various capital requirements under the 1940 Act, laws of the State of Minnesota and understandings with the SEC and the Minnesota Department of Commerce.
+Added: The terms of the investment certificates issued by ACC and the provisions of the 1940 Act also require the maintenance by ACC of qualified assets.
+Added: Actual capital and the regulatory capital requirement for TAM UK International Holdings Ltd.
+Added: and Columbia Threadneedle Investments UK International Ltd.
+Added: are calculated and reported as a single consolidated group under TAM UK International Holdings Ltd.
+Added: Required capital for these entities is predominantly based on the requirements specified by its regulator, the FCA, under its Capital Adequacy Requirements for investment firms.
Actual capital and regulatory capital requirements for our wholly owned subsidiaries subject to regulatory capital requirements were as follows:
Actual Capital Regulatory Capital Requirements
−Removed: September 30, 2023
+Added: March 31, 2024
December 31, 2023
−Removed: September 30, 2023
+Added: March 31, 2024
December 31, 2023
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703 706 314 317
−Removed: Ameriprise Bank, FSB (6)
+Added: Ameriprise Bank (6)
1,722 1,715 1,162 1,153
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Columbia Management Investment Distributors, Inc.
−Removed: Columbia Threadneedle Investments UK International Ltd.
−Removed: 333 330 154 152
N/A Not applicable as only required to be calculated annually.
2 unchanged sentences
Regulatory capital requirement is the company action level and is based on the statutory risk-based capital filing.
−Removed: (2) Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of September 30, 2023 and December 31, 2022.
+Added: (2) Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of March 31, 2024 and December 31, 2023.
(3) Actual capital is determined on an adjusted GAAP basis.
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As permitted, AOCI is excluded from the calculation of regulatory capital.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: In October 2023, the Federal Reserve Board issued its final rule establishing a consolidated capital framework termed the “Building Block Approach” for savings and loan holding companies like Ameriprise Financial that are significantly engaged in insurance activities.
−Removed: The rule is effective January 1, 2024, with reporting beginning in 2025.
+Added: In October 2023, the Federal Reserve Board (“FRB”) issued its final rule establishing a consolidated capital framework termed the “Building Block Approach” for savings and loan holding companies like Ameriprise Financial that are significantly engaged in insurance activities.
+Added: The rule became effective January 1, 2024, with reporting to the FRB beginning in 2025.
In addition to the particular regulations restricting dividend payments and establishing subsidiary capitalization requirements, we take into account the overall health of the business, capital levels and risk management considerations in determining a strategy for payments to our parent holding company from our subsidiaries, and in deciding to use cash to make capital contributions to our subsidiaries.
−Removed: During the nine months ended September 30, 2023, the parent holding company received cash dividends or a return of capital from its subsidiaries of $2.3 billion (including $500 million from RiverSource Life and $1.1 billion from AMPF Holding, LLC) and contributed cash to its subsidiaries of $277 million.
−Removed: During the nine months ended September 30, 2022, the parent holding company received cash dividends or a return of capital from its subsidiaries of $2.2 billion (including $600 million from RiverSource Life) and contributed cash to its subsidiaries of $512 million (including $375 million to Ameriprise Bank, FSB).
+Added: During the three months ended March 31, 2024, the parent holding company received cash dividends or a return of capital from its subsidiaries of $832 million (including $200 million from RiverSource Life and $320 million from AMPF Holding, LLC) and contributed cash to its subsidiaries of $60 million.
+Added: During the three months ended March 31, 2023, the parent holding company
+Added: AMERIPRISE FINANCIAL, INC.
+Added: received cash dividends or a return of capital from its subsidiaries of $605 million (including $200 million from RiverSource Life) and contributed cash to its subsidiaries of $138 million.
In 2009, RiverSource Life established an agreement to protect its exposure to Genworth Life Insurance Company (“GLIC”) for its reinsured LTC.
8 unchanged sentences
Dividends Paid to Shareholders and Share Repurchases
−Removed: We paid regular quarterly dividends to our shareholders totaling $427 million and $416 million for the nine months ended September 30, 2023 and 2022, respectively.
−Removed: On October 25, 2023, we announced a quarterly dividend of $1.35 per common share.
−Removed: The dividend will be paid on November 17, 2023 to our shareholders of record at the close of business on November 6, 2023.
−Removed: In January 2022, our Board of Directors authorized us to repurchase up to $3.0 billion for the repurchase of our common stock through March 31, 2024.
+Added: We paid regular quarterly dividends to our shareholders totaling $143 million and $138 million for the three months ended March 31, 2024 and 2023, respectively.
+Added: On April 22, 2024, we announced a quarterly dividend of $1.48 per common share.
+Added: The dividend will be paid on May 17, 2024 to our shareholders of record at the close of business on May 6, 2024.
On July 24, 2023, our Board of Directors authorized an additional $3.5 billion for the repurchase of our common stock through September 30, 2025.
−Removed: As of September 30, 2023, we had $3.6 billion remaining under these share repurchase authorizations.
+Added: As of March 31, 2024, we had $2.6 billion remaining under this share repurchase authorization.
We intend to fund share repurchases through existing excess capital, future free cash flow generation and other customary financing methods.
1 unchanged sentence
Acquisitions under the share repurchase program may be made in the open market, through privately negotiated transactions or block trades or other means.
−Removed: During the nine months ended September 30, 2023, we repurchased a total of 4.7 million shares of our common stock at an average price of $325.53 per share.
+Added: During the three months ended March 31, 2024, we repurchased a total of 1.2 million shares of our common stock at an average price of $409.96 per share.
Cash flows of CIEs and restricted and segregated cash and cash equivalents are reflected in our cash flows provided by (used in) operating activities, investing activities and financing activities.
2 unchanged sentences
Operating Activities
−Removed: Net cash provided by operating activities decreased $648 million to $2.5 billion for the nine months ended September 30, 2023 compared to $3.2 billion for the prior year period primarily reflecting higher income taxes paid and decreases in brokerage deposits, partially offset by higher investment income on fixed maturity securities.
−Removed: The higher investment income is driven by higher yields and the growth in Ameriprise Bank customer deposits and certificate business growth.
+Added: Net cash provided by operating activities increased $388 million to $1.4 billion for the three months ended March 31, 2024 compared to $1.1 billion for the prior year period primarily reflecting higher investment income from rising interest rates on the investment portfolio yield and net cash inflows in brokerage deposits.
Investing Activities
Our investing activities primarily relate to our Available-for-Sale investment portfolio and in recent quarters is significantly affected by the net flows of our face amount certificates and bank deposit activity.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: Net cash used in investing activities decreased $1.9 billion to $7.3 billion for the nine months ended September 30, 2023 compared to $9.2 billion for the prior year period primarily reflecting a $811 million increase in proceeds from maturities, sinking fund payments and calls of Available-for-Sale securities, a $442 million decrease in net cash outflows related to investments of consolidated investment entities, a $254 million decrease in net cash outflows for written options with deferred premiums and a $258 million decrease in cash used for purchases of Available-for-Sale securities.
+Added: Net cash used in investing activities decreased $2.5 billion to $569 million for the three months ended March 31, 2024 compared to $3.1 billion for the prior year period primarily reflecting a $1.1 billion decrease in purchases of Available-for-Sale securities and a $1.8 billion increase in proceeds from maturities, sinking fund payments and calls of Available-for-Sale securities.
Financing Activities
−Removed: Net cash provided by financing activities decreased $2.2 billion to $4.0 billion for the nine months ended September 30, 2023 compared to $6.2 billion for the prior year period primarily reflecting a $4.5 billion decrease in the change in banking deposits, net, partially offset by a $2.4 billion increase in net cash flows from investment certificates.
+Added: Net cash used in financing activities was $1.4 billion for the three months ended March 31, 2024 compared to net cash provided by financing activities of $3.2 billion for the prior year period.
+Added: The decrease in net cash provided by financing activities primarily reflects a $2.0 billion decrease in net cash flows from investment certificates and a $1.9 billion decrease in the change in banking deposits, net.
+Added: AMERIPRISE FINANCIAL, INC.
Forward-Looking Statements
3 unchanged sentences
• statements of the Company’s plans, intentions, positioning, expectations, objectives or goals, including those relating to asset flows, mass affluent and affluent client acquisition strategy, client retention and growth of our client base, financial advisor productivity, retention, recruiting and enrollments, the introduction, cessation, terms or pricing of new or existing products and services, acquisition integration, benefits and claims expenses, general and administrative costs, consolidated tax rate, return of capital to shareholders, debt repayment and excess capital position and financial flexibility to capture additional growth opportunities;
−Removed: • statements about the expected trend in the shift to lower-risk products, including the exit from variable annuities with living benefit riders;
−Removed: • statements about the strategic and regulatory outcomes from the withdrawal of our application to convert Ameriprise Bank to a state-chartered bank and national trust bank;
+Added: • statements about the expected trend in the shift to lower-risk products;
• statements about the anticipated deposit growth or statements about rising interest rates and the impacts on investment portfolio yield;
16 unchanged sentences
• the illiquidity of our investments;
−Removed: • effects of the elimination of LIBOR on, and value of, securities and other assets and liabilities tied to LIBOR;
• failures by other insurers that lead to higher assessments we owe to state insurance guaranty funds;
5 unchanged sentences
• interruptions or other failures in our operating systems and networks, including errors or failures caused by third-party service providers, interference or third-party attacks;
−Removed: AMERIPRISE FINANCIAL, INC.
• interruptions or other errors in our telecommunications or data processing systems;
3 unchanged sentences
• occurrence of natural or man-made disasters and catastrophes;
−Removed: • risks in acquisition transactions, such as the integration of the BMO Global Asset Management (EMEA) business, or other potential strategic acquisitions or divestitures;
+Added: • risks in acquisition transactions, or other potential strategic acquisitions or divestitures;
• legal and regulatory actions brought against us;
4 unchanged sentences
• changes in and the adoption of new accounting standards.
+Added: AMERIPRISE FINANCIAL, INC.
Management cautions the reader that the foregoing list of factors is not exhaustive.
8 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.