Core Viewpoint - Ameriprise Financial, Inc. (NYSE: AMP) is rated a "Buy" for investors focused on capital appreciation and long-term investments [1] Group 1: Investment Analysis - The recommendation is based on the company's potential for capital appreciation, appealing to long-term buy and hold investors [1] - The analysis is conducted by David A. Johnson, who has over 30 years of investment experience and holds advanced degrees in finance and business [1] Group 2: Analyst's Position - The analyst has a beneficial long position in AMP shares through various investment vehicles [2] - The article reflects the analyst's personal opinions and is not influenced by compensation from any company mentioned [2]

Assets Under Management - As of December 31, 2024, the company had $1.5 trillion in assets under management, administration, and advisement, up from $1.4 trillion as of December 31, 2023[17]. - The Asset Management segment reported $681 billion in managed and advised assets as of December 31, 2024[26]. - The company’s investment management business has $645 billion in assets under management diversified across various geographies and strategies[29]. - Assets Under Management (AUM) increased by $89.7 billion, or 8%, to $1.17 trillion as of December 31, 2024, compared to $1.08 trillion in 2023[256]. - Advice & Wealth Management AUM grew by $85.3 billion, or 18%, driven by market appreciation and wrap account net inflows[256]. - Total Assets Under Administration increased by $37.7 billion, or 13%, to $317.2 billion as of December 31, 2024[256]. - Total Assets Under Advisement increased by $8.6 billion, or 34%, to $34.0 billion as of December 31, 2024, due to market appreciation and net inflows[256]. Financial Performance - Net income for 2024 is projected to be $3,401 million, an increase from $2,556 million in 2023, representing a growth of approximately 33%[218]. - Adjusted operating earnings for 2024 are expected to reach $3,535 million, up from $3,111 million in 2023, indicating a growth of about 14%[219]. - Total revenues increased by $1.83 billion, or 11%, to $17.93 billion for the year ended December 31, 2024, compared to $16.10 billion in 2023[257]. - Net income rose by $845 million, or 33%, to $3.40 billion for 2024, up from $2.56 billion in the previous year[257]. - The effective tax rate was 20.3% for 2024, a decrease from 21.0% in the prior year[268]. Revenue Sources - Revenues in the Asset Management segment are primarily driven by managed asset balances, which are influenced by market movements and net asset flows[26]. - Management and financial advice fees increased by $1.2 billion, or 14%, for 2024 compared to the prior year, primarily due to market appreciation and continued net inflows[261]. - Management and financial advice fees in the Asset Management segment rose by $207 million, or 7%, driven by market appreciation[294]. - Management and financial advice fees rose by $1.0 billion, or 18%, to $6.492 billion in 2024, driven by a 21% increase in average advisory wrap account assets[281]. Employee Engagement and Culture - The company has a strong employee engagement score of 84%, exceeding external benchmarks, with 93% of employees participating in the engagement survey[57]. - The company has invested in a comprehensive modern learning platform for all employees to support their growth and career development[57]. - The company has established a strong values-driven culture, with 40% of its global workforce being women and 22% of U.S. employees being ethnically diverse[56]. Regulatory Environment - The company continues to face enhanced regulatory scrutiny, particularly regarding transparency and disclosure in advisor compensation and managing conflicts of interest[67]. - Ameriprise's asset management subsidiaries are registered with the SEC and must adhere to fiduciary duties, disclosure obligations, and operational restrictions[70]. - The company is subject to extensive financial regulation, including pre-approval for financial transactions by domiciliary regulators[79]. - The SEC's Regulation Best Interest standard became effective on June 30, 2020, impacting how financial advisors operate and comply with fiduciary duties[68]. - The company is subject to U.K. regulations, including the Financial Conduct Authority's new Consumer Duty, which sets higher standards for care provided to retail consumers[78]. Investment and Risk Management - The company utilizes reinsurance agreements to manage risks associated with its life and disability income products[38]. - The company ceded 50% of the risk on existing LTC policies to Genworth Financial, retaining the remaining risk[44]. - The company has pursued nationwide premium rate increases for long-term care (LTC) policies and expects to continue this strategy over the next several years[43]. Cash and Liquidity - As of December 31, 2024, Ameriprise Financial had $8.1 billion in cash and cash equivalents, up from $7.5 billion in 2023, indicating a year-over-year increase of approximately 8%[318]. - The company reported $856 million in cash, cash equivalents, and unencumbered liquid securities as of December 31, 2024, compared to $544 million in 2023, representing a significant increase of 57%[319]. - Ameriprise Financial's estimated liquidity available in a volatile economic environment was $2.1 billion as of December 31, 2024, which includes various sources of liquidity[319]. - The company believes that cash flows from operating activities and available cash balances will be sufficient to meet both short-term and long-term liquidity needs[323]. Market Conditions - The company operates in a historically low interest rate environment but has recently seen a substantial increase in rates, which may impact long-duration contract reserves and adjusted operating earnings after tax[210]. - The average Weighted Equity Index (WEI) increased by 23% in 2024 compared to the prior year, positively impacting AUM[258]. Segment Performance - Adjusted operating earnings for the Advice & Wealth Management segment increased to $3.233 billion in 2024 from $2.851 billion in 2023[270]. - Total revenues for the Retirement & Protection Solutions segment decreased by $5 million in 2024 compared to 2023[272]. - Net investment income in the Retirement & Protection Solutions segment increased by $222 million, or 26%, to $1,080 million in 2024 compared to 2023[300]. - Corporate & Other segment pretax adjusted operating loss increased by $123 million, or 38%, for 2024 compared to the prior year, primarily due to lower net investment income[307].

Core Insights - TIFIN AMP has formed a strategic partnership with Ares Wealth Management Solutions to enhance distribution efficiency through AI-powered solutions [1][2] - The collaboration aims to improve the productivity of AWMS' sales teams and align marketing efforts with client needs [2][3] - This partnership signifies the increasing importance of AI in asset management, particularly in enhancing advisor engagement and client experiences [2][3] Company Overview - TIFIN AMP specializes in AI-driven distribution solutions for asset management firms, utilizing advanced supervised AI and machine learning to optimize data alignment and processes [3] - Ares Wealth Management Solutions focuses on providing innovative investment opportunities across various asset classes, including credit, infrastructure, private equity, and real estate [4] - Ares Management Corporation is a leading global alternative investment manager with over $484 billion in assets under management as of December 31, 2024, operating across multiple regions [5]

Ameriprise Financial Fourth Quarter 2024 Conference Call January 30, 2025 © 2025 Ameriprise Financial, Inc. All rights reserved. Forward-looking statements Some of the statements made in our January 29, 2025 earnings release and/or in this January 30, 2025 presentation constitute forward-looking statements. These statements reflect management's estimates, plans, beliefs and expectations, and speak only as of January 29, 2025. These forward-looking statements involve a number of risks and uncertainties. A li ...

Core Insights - Ameriprise Financial (AMP) reported fourth-quarter 2024 adjusted operating earnings of $9.36 per share, exceeding the Zacks Consensus Estimate of $8.94, reflecting a 30% increase from the previous year [1] - For the full year 2024, adjusted operating earnings were $35.07 per share, a 19% year-over-year increase, surpassing the consensus estimate of $33.93 [3] Financial Performance - Adjusted operating total net revenues for the reported quarter were $4.46 billion, up 13% year over year, beating the Zacks Consensus Estimate of $4.45 billion [4] - Total GAAP net revenues were $4.5 billion, also reflecting a 13% increase year over year [4] - Net income on a GAAP basis was $1.07 billion or $10.58 per share, significantly up from $377 million or $3.57 per share in the prior-year quarter [2] Assets Under Management - Total assets under management (AUM) and assets under administration (AUA) increased by 10% year over year to $1.52 trillion, driven by strong client net inflows and market appreciation [5] Share Repurchase Activity - Ameriprise repurchased 1.1 million shares for $619 million during the reported quarter [6] Expense Trends - Adjusted operating expenses totaled $3.27 billion, rising 10% year over year, which was slightly below the projected $3.29 billion [4] - Elevated expenses, primarily due to technology upgrades, are expected to continue impacting AMP's bottom line [7] Competitive Landscape - Invesco (IVZ) reported fourth-quarter 2024 adjusted earnings of 52 cents per share, surpassing estimates and reflecting a 10.6% increase from the prior year, aided by a decline in adjusted expenses and higher net revenues [8] - BlackRock (BLK) reported adjusted earnings of $11.93 per share, exceeding estimates and reflecting a 23.5% year-over-year increase, supported by revenue growth despite higher expenses [9][10]

Core Insights - Ameriprise Financial Services (AMP) reported a revenue of $4.46 billion for the quarter ended December 2024, marking an 11.8% year-over-year increase and an EPS of $9.36 compared to $7.75 a year ago, exceeding both revenue and EPS consensus estimates [1] Financial Performance - The reported revenue of $4.46 billion surpassed the Zacks Consensus Estimate of $4.45 billion by 0.27% [1] - The EPS of $9.36 exceeded the consensus estimate of $8.94 by 4.70% [1] Key Metrics - Total Assets Under Administration reached $317.16 million, slightly above the average estimate of $315.16 million [4] - Total Assets Under Management (AUM) for Asset Management was $644.91 million, below the estimated $676.75 million [4] - Total AUM was reported at $1.17 billion, compared to the average estimate of $1.21 billion [4] - Net investment income revenue was $892 million, slightly above the average estimate of $891.29 million, reflecting a 0.5% year-over-year increase [4] - Premiums, policy and contract charges revenue was $379 million, down 6.2% year-over-year and below the estimated $406.88 million [4] - Distribution fees revenue was $536 million, showing a 14.3% year-over-year increase, but below the average estimate of $541.42 million [4] - Other revenues amounted to $127 million, compared to the average estimate of $136.33 million, representing a 3.3% year-over-year increase [4] - Management and financial advice fees revenue was $2.72 billion, exceeding the estimate of $2.64 billion and reflecting an 18.9% year-over-year increase [4] - Retirement & Protection Solutions premiums, policy and contract charges revenue was $367 million, down 5.7% year-over-year and below the estimate of $394.30 million [4] - Retirement & Protection Solutions net investment income was $290 million, above the estimate of $285.96 million, with an 18.4% year-over-year increase [4] - Retirement & Protection Solutions distribution fees were $108 million, in line with the estimate of $108.17 million, showing an 8% year-over-year increase [4] Stock Performance - Ameriprise shares have returned 7.4% over the past month, outperforming the Zacks S&P 500 composite's 1.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance - Fourth quarter GAAP net income per diluted share was $10.58, a 196% increase from $3.57 in the same quarter last year[7]. - Full year 2024 GAAP net income per diluted share was $33.05, up 39% from $23.71 in 2023[7]. - Net income for Q4 2024 was $1,071 million, significantly up from $377 million in Q4 2023[34]. - Year-to-date net income for 2024 was $3,401 million, a 33% increase from $2,556 million in 2023, with per diluted share earnings rising by 39% to $33.05[83]. - Ameriprise Financial reported a net income of $3,401 million for the twelve months ended December 31, 2024, an increase from $2,556 million in 2023[100]. Revenue Growth - Total revenues for Q4 2024 were $4,649 million, a 12% increase compared to $4,168 million in Q4 2023[34]. - Total net revenues for Q4 2024 were $4,501 million, compared to $3,992 million in Q4 2023, indicating a growth of 13%[87]. - Adjusted operating total net revenues were $2,834 million, an 18% increase from $2,403 million in Q4 2023[40]. - Adjusted operating earnings for Q4 2024 were $947 million, up 24% from $761 million in Q4 2023, with per diluted share earnings increasing by 30% to $9.36[80]. - Adjusted operating earnings excluding regulatory accruals for 2024 were $3,684 million, up 12% from $3,284 million in 2023[83]. Assets and Management - Assets under management, administration, and advisement grew to $1.5 trillion, a 10% increase, with client net inflows of $35 billion over the past 12 months[5]. - Total assets as of December 31, 2024, amounted to $181,403 million, an increase from $175,191 million in 2023, reflecting a growth of 3%[79]. - Total liabilities increased to $176,175 million in 2024 from $170,462 million in 2023, marking a rise of 3.5%[79]. - Total capital returned to shareholders was $768 million, a 31% increase compared to $587 million in Q4 2023[37]. - The company reported a 36% increase in total assets under advisement, reaching $35,616 million compared to $26,160 million in Q4 2023[49]. Segment Performance - Adjusted operating net revenues for the Advice & Wealth Management segment increased 18% to $2.8 billion, driven by strong growth in client assets[12]. - Total client assets in the Advice & Wealth Management segment grew 14% to $1.0 trillion, with net flows of $11.3 billion[13]. - Retirement & Protection Solutions sales increased 13% to $1.4 billion, driven by demand for structured variable annuities and variable universal life products[19]. - Pretax adjusted operating earnings for the Retirement & Protection Solutions (RPS) segment reached $726 million, while Long-Term Care (LTC) adjusted operating earnings were $58 million[98]. Shareholder Returns - The company returned $768 million to shareholders in Q4 and $2.8 billion for the full year, highlighting strong free cash flow generation[5]. - Total capital returned to shareholders was $768 million, a 31% increase compared to $587 million in Q4 2023[37]. Operational Efficiency - The company achieved a pretax adjusted operating margin of 39% in the Asset Management segment, reflecting effective expense management[15]. - The pretax adjusted operating margin for Q4 2024 was 26.8%, compared to 24.8% in Q4 2023, indicating improved operational efficiency[87]. - The effective tax rate for Q4 2024 was 20.8%, consistent with the adjusted operating effective tax rate, reflecting stable tax management[91]. Recognition and Awards - Ameriprise Financial was recognized by Forbes as one of "America's Best Companies" for 2025[5].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Ameriprise Financial (AMP) as a strong value stock based on various financial metrics [2][8]. Company Metrics - Ameriprise Financial (AMP) holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock has a P/E ratio of 13.46, significantly lower than the industry average of 17.41, suggesting it may be undervalued [4]. - AMP's Forward P/E has fluctuated between 10.63 and 15.63 over the past 52 weeks, with a median of 11.99 [4]. - The PEG ratio for AMP is 0.80, compared to the industry average of 0.95, indicating favorable growth expectations relative to its price [5]. - The P/S ratio for AMP is 3.08, lower than the industry average of 3.45, reinforcing the notion of undervaluation [6]. - AMP's P/CF ratio stands at 21.17, significantly below the industry average of 35.68, further suggesting it is undervalued based on cash flow [7]. - Overall, these metrics indicate that Ameriprise Financial is likely undervalued and presents an attractive investment opportunity [8].

Core Insights - Jacobs Solutions Inc. has been selected by United Utilities to provide modeling support for water infrastructure during the asset management period (AMP8) from 2025 to 2030, with an initial agreement of five years and a potential extension to 11 years [1][3]. Group 1: Partnership and Services - Jacobs will offer water network and water quality modeling services, collaborating with United Utilities and its supply chain to explore innovative solutions and advanced modeling techniques [2]. - The partnership aims to address challenges such as climate change, water security, and aging infrastructure, contributing to the largest water and wastewater infrastructure investment in North West England in a century [3]. - United Utilities serves approximately seven million people, supplying water to three million households and 200,000 business premises [3]. Group 2: Strategic Contributions - Jacobs is part of United Utilities' Strategic Solutions Team, focusing on optimizing the AMP8 major capital program and providing tactical project management office support [5]. - The company plays a key role in United Utilities' engineering services framework, offering strategic studies, business planning, asset optimization, and project management [6]. - Jacobs' Aqua DNA solution utilizes live data, smart sensors, and AI-driven analytics to enhance wastewater network performance, supporting the resilience of critical assets [6]. Group 3: Financial Performance and Outlook - Jacobs' fiscal 2024-end backlog increased by 22.5% year over year to $21.8 billion, indicating strong project wins and robust demand [9]. - The book-to-bill ratio was reported at 1.67x in the fiscal quarter, highlighting future revenue stability [9]. - Despite challenges such as increased costs and inflationary pressures, Jacobs is expected to benefit from global trends in infrastructure modernization and energy transition [8][9].

Core Viewpoint - Ameriprise Financial Services reported a mixed performance in its Q3 2024 earnings, with adjusted operating earnings lagging behind estimates due to increased expenses, despite revenue growth and higher assets under management (AUM) and assets under administration (AUA) [2][4][5]. Financial Performance - Adjusted operating earnings for Q3 2024 were $8.83 per share, below the Zacks Consensus Estimate of $8.91, but up 15% from the previous year [2]. - Net income on a GAAP basis was $511 million or $5.00 per share, down from $872 million or $8.14 per share in the prior-year quarter [3]. - Adjusted total net revenues were $4.35 billion, an 11% increase year over year, surpassing the Zacks Consensus Estimate of $4.31 billion [4]. - Total GAAP net revenues reached $4.4 billion, reflecting a 12% year-over-year increase [5]. Expense and AUM Analysis - Adjusted operating expenses totaled $3.3 billion, rising 11% year over year, exceeding projected expenses of $3.05 billion [5]. - Total AUM and AUA increased by 22% year over year to $1.51 trillion, driven by strong client net inflows and market appreciation [5]. Share Repurchase Activity - The company repurchased 1.3 million shares for $563 million during the reported quarter [6]. Future Outlook - Management anticipates that net interest income in 2024 will be higher than in 2023 [7]. - Estimates for the stock have been trending downward, indicating a potential shift in investor sentiment [8][10]. Industry Comparison - Ameriprise operates within the Zacks Financial - Investment Management industry, where competitor Invesco reported revenues of $1.1 billion, a year-over-year increase of 0.6% [11]. - Invesco's expected earnings for the current quarter are $0.48 per share, reflecting a year-over-year change of 2.1% [12].