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%. |
