Ameriprise Financial(US:AMP)2024-11-01 19:11Financial Performance - Ameriprise Financial reported net income of $2.33 billion for the nine months ended September 30, 2024, compared to $2.18 billion in the same period of 2023, reflecting a growth of approximately 7.5%[212]. - Adjusted operating earnings for the same period increased to $2.59 billion, up from $2.35 billion year-over-year, representing a growth of about 10.2%[212]. - Total net revenues for the nine months ended September 30, 2024, increased by $1,220 million, or 11%, to $12,763 million compared to $11,543 million in the prior year period[254]. - Total revenues for the three months ended September 30, 2024, were $4,397 million, an increase of $472 million, or 12%, compared to $3,925 million in the prior year period[222]. - Total revenues for the three months ended September 30, 2024, increased by $97 million, or 11%, to $973 million compared to $876 million in the prior year period[245]. Assets Under Management - Total assets under management and administration reached $1.5 trillion as of September 30, 2024[210]. - Total Assets Under Management (AUM) increased by $201.5 billion, or 20%, to $1.2 trillion as of September 30, 2024, compared to $990.4 billion as of September 30, 2023[220]. - Total Assets Under Administration (AUA) increased by $71.8 billion, or 30%, to $314.2 billion as of September 30, 2024, compared to the prior year period[220]. - Total managed assets increased by $84.9 billion, or 14%, to $672.1 billion as of September 30, 2024, compared to $587.2 billion in the prior year[237]. Earnings and Returns - The adjusted operating earnings per diluted share for the third quarter of 2024 was $25.03, compared to $21.66 in 2023, marking a growth of 15.3%[212]. - The adjusted operating return on equity for the third quarter of 2024 was 49.6%, compared to 48.4% in the same period of 2023[213]. - The effective tax rate was 20.7% for the three months ended September 30, 2024, compared to 21.8% for the prior year period[228]. - Adjusted operating earnings increased by $257 million, or 12%, for the nine months ended September 30, 2024, reflecting market appreciation and higher average short-term interest rates[261]. Expenses and Claims - Total expenses increased by $944 million, or 34%, for the three months ended September 30, 2024, compared to the prior year period[222]. - Benefits, claims, losses, and settlement expenses increased by $310 million, primarily reflecting a $221 million increase in expense from market impacts on structured variable annuities[226]. - General and administrative expenses increased by $45 million, or 64%, for the three months ended September 30, 2024, primarily due to higher severance expenses and costs related to transitioning to cloud-based technology[253]. - Distribution expenses increased by $638 million, or 18%, for the nine months ended September 30, 2024, reflecting higher advisor compensation and increased transactional activity[263]. Market Impact and Risks - The company experienced a market impact on non-traditional long-duration products, resulting in a loss of $322 million in the current period, compared to a loss of $137 million in the prior year[212]. - The average S&P 500 index was 24% higher in the quarter compared to the prior year period, contributing to the overall market performance[223]. - Management highlights risks including market fluctuations, changes in interest rates, and competition affecting financial performance[293]. - The company emphasizes the importance of maintaining third-party distribution channels and managing risks associated with investments[293]. Capital and Liquidity - Available Capital for Capital Adequacy was reported at $5.52 billion as of September 30, 2024, compared to $5.42 billion at the end of 2023[215]. - As of September 30, 2024, the company had $10.6 billion in cash and cash equivalents, up from $7.5 billion as of December 31, 2023[280]. - The company had estimated borrowing capacity of $11.9 billion from the Federal Reserve as of September 30, 2024, with no outstanding obligations[280]. - Net cash provided by operating activities increased by $3.7 billion to $6.2 billion for the nine months ended September 30, 2024, compared to $2.5 billion for the prior year period[289]. Strategic Outlook - The company anticipates continued growth in asset flows and client acquisition strategies, reflecting a positive outlook for future performance[292]. - The company expects deposit growth and rising interest rates to positively impact investment portfolio yield[293]. - Future strategies may involve acquisitions or divestitures to enhance growth opportunities[293]. - The company plans to continue monitoring economic performance and market conditions to adapt its strategies accordingly[293].