EX-99.1 2 tm2312654d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Ameriprise Financial, Inc. Reports

2021 and 2022 Recast Results under LDTI

 

In August 2018, the FASB updated the accounting standard related to long-duration insurance contracts. The guidance revises elements of the measurement models and disclosure requirements for long-duration insurance contracts issued by insurers. Adoption of the accounting standard will not impact overall cash flows, insurance subsidiaries’ dividend capacity, or regulatory capital requirements. It will have no impact on Advice & Wealth Management, Asset Management or Corporate excluding Long Term Care and Fixed Annuities segment results.

 

In Q1 2023, the Company will begin reporting results under this new standard. This presentation provides GAAP and Operating results for 2021 and 2022 recast under LDTI.

 

Contacts

 

Investor Relations:  Media Relations:
Alicia A. Charity  Paul W. Johnson
Ameriprise Financial, Inc.  Ameriprise Financial, Inc.
(612) 671-2080  (612) 671-0625
alicia.a.charity@ampf.com  paul.w.johnson@ampf.com

 

Stephanie M. Rabe

Ameriprise Financial, Inc.

(612) 671-4085

stephanie.m.rabe@ampf.com

 

 

Non-GAAP Financial Measures

 

The company believes the presentation of adjusted operating earnings and other non-GAAP financial measures, and the corresponding ratios, best represents the underlying performance of our core operations and facilitates a more meaningful trend analysis without the distortion of various adjustment items. Management uses non-GAAP financial measures to evaluate our financial performance on a basis comparable to that used by some securities analysts and investors and to provide a valuable perspective for investors. These non-GAAP financial measures are taken into consideration, to varying degrees, for purposes of business planning and analysis and for certain compensation-related matters. Non-GAAP financial measures are intended to supplement investors’ understanding of our performance and should not be considered alternatives for financial measures presented in accordance with GAAP. These measures are discussed in more detail below and may not be comparable to other companies’ similarly titled non-GAAP financial measures. Non-GAAP financial measure reconciliations can be found on the subsequent pages.

 

 

 

Forward-Looking Statements

 

This supplement contains forward-looking statements that reflect management’s plans, estimates and beliefs. Actual results could differ materially from those described in these forward-looking statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from such statements.

 

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Management cautions readers to carefully consider the risks described in the “Risk Factors” discussion under Part 1, Item 1A of and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2022, available at ir.ameriprise.com. Management undertakes no obligation to update publicly or revise any forward-looking statements.

 

The financial results discussed in this supplement represent past performance only, which may not be used to predict or project future results. The financial results and values presented in this supplement are based upon asset valuations that represent estimates as of the date of this supplement and may be revised in the company’s Form 10-Q for the period ended March 31, 2023.

 

Ameriprise Financial announces financial and other information to investors through the company’s investor relations website at ir.ameriprise.com, as well as SEC filings, press releases, public conference calls and webcasts. Investors and others interested in the company are encouraged to visit the investor relations website from time to time, as information is updated and new information is posted. The website also allows users to sign up for automatic notifications in the event new materials are posted. The information found on the website is not incorporated by reference into this supplement or in any other report or document the company furnishes or files with the SEC.

 

 

 

 

Ameriprise Financial, Inc.

Recast Consolidated Results

(in millions, except per share amounts, unaudited)  Full Year 2021   1 Qtr 2022   2 Qtr 2022   3 Qtr 2022   4 Qtr 2022   Full Year 2022   YoY % Over/
(Under)
                                  
GAAP net income  $3,417   $825   $614   $1,061   $649   $3,149   (8)%
Adjusted operating earnings  $2,614   $676   $654   $823   $732   $2,885   10%
Adjusted operating earnings excluding unlocking  $2,703   $676   $654   $716   $732   $2,778   3%
(see reconciliations on p. 7)                                 
                                  
GAAP net income per diluted share  $28.48   $7.10   $5.37   $9.41   $5.83   $27.70   (3)%
Adjusted operating earnings per diluted share  $21.78   $5.82   $5.72   $7.30   $6.57   $25.37   16%
Adjusted operating earnings per diluted share excluding                                 
unlocking  $22.53   $5.82   $5.72   $6.35   $6.57   $24.43   8%
(see reconciliations on p. 7)                                 
                                  
Weighted average common shares outstanding                                 
Basic   117.3    113.7    112.3    110.5    108.9    111.3   (5)%
Diluted   120.0    116.2    114.4    112.7    111.4    113.7   (5)%

 

 

 

 

 

Ameriprise Financial, Inc.

Recast Consolidated GAAP Results

(in millions, except per share amounts, unaudited)  Full Year 2021 

 

1 Qtr 2022

 

 

2 Qtr 2022

  3 Qtr 2022  4 Qtr 2022  Full Year 2022 

YoY % Over/

(Under)

Revenues                     
Management and financial advice fees  $ 9,275    $ 2,459    $ 2,277    $ 2,172    $ 2,125    $ 9,033    (3)%
Distribution fees  1,828  446  459  506  528  1,939  6%
Net investment income  1,683  261  287  349  577  1,474  (12)%
Premiums, policy and contract charges  221  338  342  354  363  1,397  NM
Other revenues  382  123  124  118  126  491  29%
Total revenues  13,389  3,627  3,489  3,499  3,719  14,334  7%
Banking and deposit interest expense  12  2  3  15  56  76  NM
Total net revenues  13,377  3,625  3,486  3,484  3,663  14,258  7%
                      
Expenses                     
Distribution expenses  5,028  1,300  1,239  1,198  1,198  4,935  2%
Interest credited to fixed accounts  600  141  145  157  222  665  (11)%
Benefits, claims, losses and settlement expenses  (156)  32  (196)  81  325  242  NM
Remeasurement gains and losses of future policy benefit                     
reserves  (52)  (6)  1  (1)  7  1  NM
Change in fair value of market risk benefits  (113)  100  519  (321)  13  311  NM
Amortization of deferred acquisition costs  259  65  67  58  62  252  3%
Interest and debt expense  191  40  44  52  62  198  (4)%
General and administrative expense  3,435  947  894  925  957  3,723  (8)%
Total expenses  9,192  2,619  2,713  2,149  2,846  10,327  (12)%
Pretax income  4,185  1,006  773  1,335  817  3,931  (6)%
Income tax provision  768  181  159  274  168  782  (2)%
Net income  $ 3,417    $ 825    $ 614    $ 1,061    $ 649    $ 3,149    (8)%
                                  
Earnings per share                     
Basic earnings per share  $ 29.13    $ 7.26    $ 5.47    $ 9.60    $ 5.96    $ 28.29    (3)%
Earnings per diluted share  $ 28.48    $ 7.10    $ 5.37    $ 9.41    $ 5.83    $ 27.70    (3)%

 

NM Not Meaningful - variance equal to or greater than 100%

 

 

 

 

Ameriprise Financial, Inc.

Recast Retirement & Protection Solutions Segment Adjusted Operating Results

(in millions, unaudited)  Full Year 2021  1 Qtr 2022  2 Qtr 2022  3 Qtr 2022  4 Qtr 2022  Full Year 2022  YoY % Over/
(Under)
Revenues                     
Management and financial advice fees  $ 932   $ 218   $ 197   $ 189   $ 184   $ 788   (15)%
Distribution fees  485  112  107  101  98  418  (14)%
Net investment income  480  114  124  151  180  569  19%
Premiums, policy and contract charges  1,326  321  328  339  349  1,337  1%
Other revenues  7  3  4  3  2  12  71%
Total revenues  3,230  768  760  783  813  3,124  (3)%
Banking and deposit interest expense  —  —  —  —  —  —  -
Adjusted operating total net revenues  3,230  768  760  783  813  3,124  (3)%
Expenses                     
Distribution expenses  544  122  118  106  102  448  18%
Interest credited to fixed accounts  389  96  96  97  97  386  1%
Benefits, claims, losses and settlement expenses  427  109  108  113  139  469  (10)%
Remeasurement gains and losses of future policy benefit                     
reserves  (6)  (7)  (3)  5  6  1  NM
Change in fair value of market risk benefits  680  131  129  (11)  123  372  45%
Amortization of deferred acquisition costs  239  59  61  56  57  233  3%
Interest and debt expense  37  9  9  10  11  39  (5)%
General and administrative expense  302  74  74  82  79  309  (2)%
Adjusted operating expenses  2,612  593  592  458  614    2,257  14%
Pretax adjusted operating earnings  $ 618   $ 175   $ 168   $ 325   $ 199   $ 867   40%
Unlocking  (113)  —  —  128  —  128  NM
Pretax adjusted operating earnings excluding unlocking  $ 731   $ 175   $ 168   $ 197   $ 199   $ 739   1%
                                  

 

NM Not Meaningful - variance equal to or greater than 100%

 

 

 

 

Ameriprise Financial, Inc.

Recast Long Term Care Adjusted Operating Results

(in millions, unaudited)  Full Year 2021  1 Qtr 2022  2 Qtr 2022  3 Qtr 2022  4 Qtr 2022  Full Year 2022  YoY % Over/
(Under)
Revenues                     
Management and financial advice fees  $ —   $ —   $ —   $ —   $ —   $ —   -
Distribution fees  —  —  —  —  —  —  -
Net investment income  149  36  37  38  42  153  3%
Premiums, policy and contract charges  99  23  24  25  26  98  (1)%
Other revenues  —  —  —  —  —  —  -
Total revenues  248  59  61  63  68  251  1%
Banking and deposit interest expense  —  —  —  —  —  —  -
Adjusted operating total net revenues  248  59  61  63  68  251  1%
Expenses                     
Distribution expenses  (12)  (2)  (4)  (3)  (4)  (13)  8%
Interest credited to fixed accounts  —  —  —  —  —  —  -
Benefits, claims, losses and settlement expenses  243  57  58  65  60  240  1%
Remeasurement gains and losses of future policy benefit                     
reserves  (46)  1  4  (6)  1  —  NM
Change in fair value of market risk benefits  —  —  —  —  —  —  -
Amortization of deferred acquisition costs  —  —  —  —  —  —  -
Interest and debt expense  10  3  2  3  3  11  (10)%
General and administrative expense  24  5  7  4  7  23  4%
Adjusted operating expenses  219  64  67  63  67  261  (19)%
Pretax adjusted operating earnings (loss)  $ 29   $ (5)  $ (6)   $ —   $ 1   $ (10)   NM
Unlocking  —  —  —  6  —  6  -
Pretax adjusted operating earnings (loss) excluding unlocking  $ 29   $ (5)   $ (6)   $ (6)   $ 1   $ (16)   NM
                                  

 

NM Not Meaningful - variance equal to or greater than 100%

 

 

 

 

Ameriprise Financial, Inc.

Recast Fixed Annuities Adjusted Operating Results

(in millions, unaudited)  Full Year 2021  1 Qtr 2022  2 Qtr 2022  3 Qtr 2022  4 Qtr 2022  Full Year 2022  YoY % Over/
(Under)
Revenues                     
Management and financial advice fees  $ —   $ —   $ —   $ —   $ —   $ —   -
Distribution fees  1  —  —  —  —  —  NM
Net investment income  143  8  8  8  9  33  (77)%
Premiums, policy and contract charges  1  1  —  —  —  1  -
Other revenues  137  57  57  55  55  224  64%
Total revenues  282  66  65  63  64  258  (9)%
Banking and deposit interest expense  —  —  —  —  —  —  -
Adjusted operating total net revenues  282  66  65  63  64  258  (9)%
                      
Expenses                     
Distribution expenses  3  1  1  1  —  3  -
Interest credited to fixed accounts  250  61  60  61  60  242  3%
Benefits, claims, losses and settlement expenses  3  2  —  2  3  7  NM
Remeasurement gains and losses of future policy benefit                     
reserves  —  —  —  —  —  —  -
Change in fair value of market risk benefits  —  —  —  —  —  —  -
Amortization of deferred acquisition costs  9  3  3  —  4  10  (11)%
Interest and debt expense  11  —  —  —  —  —  NM
General and administrative expense  26  4  6  4  4  18  31%
Adjusted operating expenses  302  71  70  68  71  280  7%
Pretax adjusted operating earnings (loss)  $ (20)   $ (5)   $ (5)   $ (5)   $ (7)   $ (22)   (10)%
Unlocking  —  —  —  1  —  1  -
Pretax adjusted operating earnings (loss) excluding unlocking  $ (20)   $ (5)   $ (5)   $ (6)   $ (7)   $ (23)   (15)%
                                  

 

NM Not Meaningful - variance equal to or greater than 100%

 

 

 

 

Ameriprise Financial, Inc.

Recast Reconciliation Table: Earnings

(in millions, except per share amounts, unaudited)  Full Year
2021		  1 Qtr 2022  2 Qtr 2022  3 Qtr 2022  4 Qtr 2022  Full Year 2022  YoY % Over/
(Under)
                                  
Net income  $ 3,417   $ 825   $ 614   $ 1,061   $ 649   $ 3,149   (8)%
Less: Net realized investment gains (losses)(1)  86  16  (14)   (88)   (7)   (93)   
Add: Market impact on non-traditional long-duration products(1)  (464)   (180)   19  (405)   83  (483)   
Add: Mean reversion-related impacts(1)  (1)   —  2  1  (2)   1   
Add: Market impact on hedges on investments(1)  22  —  —  —  —  —   
Less: Block transfer reinsurance transaction impacts(1)  524  —  —  —  —  —   
Add: Integration/restructuring charges(1)  32  10  14  11  15  50   
                      
Less: Net income (loss) attributable to consolidated investment entities  (3)   2  (1)   (3)   (2)   (4)   
Add: Tax effect of adjustments(2)  215  39  (10)   64  (22)   71   
Adjusted operating earnings  2,614  676  654  823  732  2,885  10%
Less: Pretax impact of annual unlocking/loss recognition  (113)   —  —  135  —  135   
Less: Tax effect of annual unlocking(2)  24  —  —  (28)   —  (28)   
Adjusted operating earnings excluding unlocking  2,703  676  654  716  732  2,778  3%
                      
Per Diluted Share                     
Net income  $ 28.48  $ 7.10   $ 5.37   $ 9.41   $ 5.83   $ 27.70   (3)%
Less: Net realized investment gains (losses)(1)  0.72  0.14  (0.12)   (0.78)   (0.06)   (0.82)   
Add: Market impact on non-traditional long-duration products(1)  (3.87)   (1.55)   0.17  (3.60)  0.75  (4.25)   
Add: Mean reversion-related impacts(1)  (0.01)   —  0.02  0.01  (0.02)   0.01   
Add: Market impact on hedges on investments(1)  0.18  —  —  —  —  —   
Less: Block transfer reinsurance transaction impacts(1)  4.37  —  —  —  —  —   
Add: Integration/restructuring charges(1)  0.27  0.09  0.12  0.10  0.13  0.44   
                      
Less: Net income (loss) attributable to consolidated investment entities  (0.03)   0.02  (0.01)   (0.03)   (0.02)   (0.04)   
Add: Tax effect of adjustments(2)  1.79  0.34  (0.09)   0.57  (0.20)   0.61   
Adjusted operating earnings  21.78  5.82  5.72  7.30  6.57  25.37  16%
Less: Pretax impact of annual unlocking/loss recognition  (0.95)   —  —  1.20  —  1.19   
Less: Tax effect of annual unlocking(2)  0.20  —  —  (0.25)   —  (0.25)   
Adjusted operating earnings excluding unlocking  $ 22.53   $ 5.82   $ 5.72   $ 6.35   $ 6.57   $ 24.43   8%
                      
Weighted average common shares outstanding:                     
Basic  117.3  113.7  112.3  110.5  108.9  111.3   
Diluted  120.0  116.2  114.4  112.7  111.4  113.7   
                      

 

NM Not Meaningful - variance equal to or greater than 100%

 

(1)Pretax adjusted operating adjustment.

 

(2)Calculated using the statutory tax rate of 21%.