AMP - Earnings call transcript Q4 2017 | Ameriprise Financial, Inc.

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Operator

Welcome to the Q4 2017 Earnings Call. My name is Paulette, and I will be your operator for today’s call. [Operator Instructions] Please note that this conference is being recorded. I will now turn the call over to Alicia Charity, you may begin.

Alicia Charity

Thank you, and good morning. fourth call. Financials Ameriprise to quarter earnings Welcome

On Chairman our and with me Chief Jim Cracchiolo, today are CEO, Officer. the call Financial and Walter Berman,

Following your to be their take remarks, we'll questions. happy

materials that to on two see you earnings statements. Turning discussion forward-looking are slide of our a on our available website, presentation

found non-GAAP hear numbers the provide company's the insight will various today's numbers their financial GAAP reference in of respective to during be Specifically you measures non-GAAP can into operations. to call, which believe materials. Reconciliations we

to Some we forward on and and to cause earnings call looking, XXXX sample a performance. quarter and only fourth this reflecting plans statements. involve be different could in of be these events revise and report from speak These XXXX XX-K can number update operating We A statements that no actual forward-looking list annual forward-looking future shareholders, found XXXX as risks make of materially that date uncertainties. obligation may statements of forward-looking risks to statements factors make management's publicly be our expectations or overall today's report. and about our and release, our results

three, the results GAAP see will the top quarter. at of slide our to page Turning fourth you the for financial

the As in fourth quarter. was tax quarter you are million cuts the charge aware, act established resulting $XXX in the and jobs unfavourable in a

operating results the financial And it that, adjusted comments more of a business performance for the tax focus the underlying charge Jim. on turn time enhances meaningful by operating core Many facilitates are for results the one provided operations in will that adjusted I'll is to our the on management the our re-measurement makes we of today analysis. reflecting Given our believes impact. nature, tax call of understanding over this re-measurement. Management also with and trend

James Cracchiolo

and then for questions. perspective Walter take to speak we’ll my numbers your thank on joining call. be earnings and will morning about the business. you happy the Good today's I'll provide

fourth we quarter year Clearly, of experienced share Let's I’m environment fourth to the started. strong was get the in what pleased and Ameriprise. concluding had favourable excellent strong operating quarter. markets throughout most a an remains XXXX very that we for

had in the the which markets economies and boosted addition, improving sentiment. globally we and impact pro-growth beneficial of Washington In investor agenda financial

we strong a As firm, to providing Management. top I strategy with last returns value clients strong on and the reflect excellent our in advisors & term by apart executed on results supported focused sets across year, Advice quality what for experience us what long We momentum delivered and and we invested creation. Wealth solutions remain in

$XXX Assets reached a up and of high in by administration flows client under continued billion and equity driven new strength appreciation. market management XX% Ameriprise

for in the quarter return. the The corporate you time good we’ll As tax took benefits generating the one reform and we rate a while charge additional the shareholder further expect business provide we new generation, which cash for be capital further ongoing positive. lower opportunities while free will tax invest act, in a from saw, to

earnings look earnings were highlighted, earnings XX% $X.X diluted XX% XX% earnings at $X.XX a up up $XXX grew we highs reached $XX.XX, increase. share impact tax per When Ameriprise Both we record, billion new a on and the excluding increase. numbers, operating per achieved earnings many were were we million, with per a operating our share from metrics. and Earnings a of full-year results, ago. XX% Regarding new year significantly share

capital maintain are management financial Ameriprise capital we at these of time be same high annuity and the rate. our asset at foundation. Very return growth our on return. new is meaningful measures at management businesses our hourly grown strategy, level generating financial consistent operating has fee-based of best XXXX, And addition, equity and achieved with And XX.X% we the and lower complemented In quarter, which few by one services. returns for wealth companies discipline a management in and our a In businesses. financial continued services consistently our to protection long-term grew of expense of strong XX% excellent and the we earnings total investments our this

businesses. the to move Let’s

increasing. met ago time advice year is value we and Our managing facing our growing practices one Advice well support and and well the clients advice the Ameriprise uncertainty changes. and role. our were around situated & Labor and kick their we advisors with work our deal how resources We leadership team while very and the a regulatory so need powerful reminded of was position The in with the we The focused Ameriprise serving in are the year culture of industry I is a attractive the considerable devoted ensure Wealth reflects significant and to growing. the prepared. for of industry on industry. Management kept leadership why with providers field strength with proposition. an way business off and Recently, consumer of opportunity great and our is Department our to is them advisors, largest our Ameriprise running

our XX% assets including grew wrap some our brought Moving with in to serve to $X and billion more good continue XX% quarter, clients affluent as more for key deepen to to We grew billion the clients them. retail client metrics the relationships by for of flows inflows net we Ameriprise the quarter. $XXX and client

impacts. to XXb-X with net grow a for result, revenue total continue we per operating XX% increasing productivity financial advisor net As adjusting nicely fee year-over-year,

occurring and high quality advisor of recruiting in advisors investments and result rate size the strong productivity There pretax discipline, the value good with for full-year, another recruits, in quarter and than a continue help consistent believe our in advice higher XXX was term. With longer joining but continue it we the centric who and fact changes you the if joining strong as we a to in expand the industry. culture. margins These we points XX% for was expense well of quarter, to growth advisors grew client reputation AWM look at XX.X% full-year. larger at quantity firm, the of proposition the in we the one well and It practices quality appreciate important terms to situated the also to to significantly our Ameriprise. fourth industry are and see our them margins attract advisors, to I our grow provide a in best over quarters competitors XX recruiting as As support landscape, the key we good are our and basis differentiators operating of

in ranked serving we in in one best for customer Number to recommend two industry number in accolades important In top a one earned of first the a the number addition, in and investment performer to customer also Ameriprise in XXXX for forgiveness, XXXX. the trust, interest Temkin friends number service, clients in firm one And Index. loyalty we or likelihood colleague. ranked the recently number

and and to in marketing to our social digital including new Brilliant to story picked digital in going to experience Be provide media with our for TV, integrated platform through tell and our ads capabilities brand security. We’re continue Our continue we and with invest up increased we’ll our clients and XXXX

situated our move wealth we is management business forward, As well.

creates its value position. building know We leading year in proposition and consumers a an to started experience and advice clients provide that excellent We’re the to the want we confidence we off and in favorable help industry experience it. more XXXX

annuities to move Let’s and protection.

that to manage sales a We offerings. up pickup and living insurance appreciation. slower continuing annuity continue however benefits due a in Variable we These sales are have over flat solid clients long-term previous quarters at last protection on with to continue market improvement well. needs particularly the IUL equity show XX% pace year financial books see serve Life and ago. the and annuity up nice sales. annuity without VUL/UL of were security overall to been industry fourth in to our sales our essentially side, And from through our Total a year, we consistent annuities balances quarter

data to provide to insurance We e-capabilities. help to important from and new solutions improve underwriting, implementing using analytics continue advisors digital to clients these

In in to Home, focused can vehicle impacted loss managing a on and and quarter, focused Overall, the of remain quarter aside like are in losses, which results. Overall, financial taking the improving are markets our we’re development industry we improvement books by financial results the rates coverage enhancing we our from Auto Fixed seeing launched to increasing cat are to and those environment terms annuity, In risk our higher In changes and losses involving XXXX. hold and retirement We management. and claims reflected management, and progress underline our we what as operating good California. and stability portfolios. we’re wildfires strong cat discipline. that the reserve mitigate first that’s segmentation business good enhanced in and reinsurance in seeing Unfortunately, of trends retirement in property savings we maintaining Index positive the from RiverSource underwriting, client’s generating in asset discipline starting on are on add be is cat and position. long-term returns expense benefit

the executing firm on the while positioning globally plans long-term. near-term focused are our to we business compete the Regarding over

quarter than the up management to generating for fees performance the we includes adjusted earnings were and to in unwinds. and financial a billion, nearly were quarter. Operating this Assets XX%, increased X% strong and under XX% competitive more results $XXX are CLO up margin

of the terms performance. start investment quarter, In I’ll with

and exempt globally. strong fixed year performance domestic or of is one, fixed continue the XX our including XXX three recognition in as XX% delivered up of as investment performance around the five-star with equities, world well in in reflected above U.K. results five four-and equities line We multi-asset Morningstar-rated asset earned North the manager income as consistent also generate funds, of to awards timeframes. our tax and funds taxable This America international terrific than year We’ve benchmarks strong across about We’ve [Indiscernible] and for allocation more competitive income. and

are and strategic align demand On we front, in to categories, needs. the that with investor on focus high continue our product products

multi-asset products adaptive where aiding the and risk and we in U.S. diversify that U.K. also flows our generating include see strategies are opportunities We’re in where our real business we solid return solutions the

continue adaptive unique for that the product We a launched Columbia retirement recently build capability. risk contribution the defined these incorporates adaptive our series, to upon We market capabilities.

We’ve are is awareness. ongoing in our regions key the key had results brand up campaign That included Threadneedle’s a priority on CNBC, Columbia increase in and far. to consistency. we new ads advertising with is response centered launching pleased good on our Another awareness so

a to our part in achieve how execute and our channels, this for they our the front middle we of continue significant MiFID to presence. managing were the U.S. from and global and platforms online once office to make preparing back a increase our regional good and solutions asset we strengthen will to improve XXXX truly a social II And and advisors in We project of help digital as regulatory work, media goals. operating a efficiency. are front capabilities operating to and for completed, customized multiyear strengthen move ability offer platform. As management flexibility gender leader investing recently progress and in we recognized And solutions are website change investor we create considerably, and on We including Brexit. operating

fourth of the IAD quarter segmentation VD progress intelligence tools. characteristics given inflows In book. by normal flows, a billion billion terms were dividends. legacy outflows including business enhance at billion Limestone experienced know reinvested about more including dividends acquisition. net we mutual X.X were reflecting fund $X of improved the in and level strategy net retail, our I total $X.X overall in and U.S. U.S. of and reinvest net channels In inflows We sales the in of Trust

fixed completed the would experienced particularly that outflows, sales, of assets. income billion we investments Limestone our And that related We Europe for are move And billion work. our complements in in I former $X.X remain In in and points. passive U.K. of U.K. rate with third-party of institutional property very It making gross of parent retail, fee added progress basis which acquisition and of and with strength closing, and the the only assets, inflows was revenues fee a rate strong elevated note an we clients we low in inflows were four billion another however we’ll excellent up we Ameriprise had third third XXX the to year-over-year both overall X.X party, the good In million. we about for consecutive of quarter net in there’s business a quarter net the had and for net business generate more positioning reflecting had to mandates institutional, the In Overall, are we average fee assets low manage. that and of U.K. the weighted outflows. had returns. are parent which outflows Europe. the approximately fee year. former deliver mix good long-term X.X quarter the for

way be years. corporate for We equality for continue received Ameriprise the well this XXXX, we’ve as rating we recognized to work as In XXX% the our on XX and involvement. Index together, last earned the community for

as named year Threadneedle U.K. at was recognized best In of awards. the Columbia again a We’re and the to place the employer women finance work.

value is all essential to well-positioned The been to addition, it’s are year the how stakeholders. of engagement continue and long-term foundation were for in and clients for named our with again to to for employer them as industry-leading, In many years. we deliver of we this is military Ameriprise fourth friendly our the all strength a and the advisors, row, employees the culture our

cover take your Now back Walter be I’ll will to and the questions. financials,

Walter Berman

Jim. the long-term through you the pages. strong in year in results results significant the in Ameriprise revenue, the on I obtaining and in growth objectives detail return-on-equity. shareholder in quarter progress with Thank will go following EPS, demonstrated and our

client revenue Advice drove & slide in driven accounts and the in XX% Management Wealth Asset growth XX% Moving assets, wrap strong, six, topline appreciation market overall Strong up growth in to Management. in by particularly was AWM. substantial quarter growth

item, in X% due growth insurance X% Asset the established trends. was two arrangements hedge were was $X.XX up were XXXX. declined U.K. EPS slide fuelled tax up to and additional Management funds of with and markets, strong EPS funds, tax reported operating including the and from auto into revenue foreign the expenses X% On two seven, impact. unwinding re-measurement fees where more flat focus the XXXX. reinsurance prior the giving was dividends accruals than as translation, Annuities relatively for Management by year. we our the in return and in of X.X the Ameriprise revenues XX% on earnings share home consistent This asset our life via $X.XX business In as AWM would property health CLO’s. and from businesses performance remains XX% Adjusting as last was the as the up adjusting was billion flat, businesses. and move buybacks our year shareholders G&A slower discipline in and returned XX%. including fees second in and essentially Capital was expect price expense we compensation, timing performance-based Asset the to well of acquisitions We growth closing half for performance were up appreciation. for exchange revenues management G&A

investment based by volume of the X% the related Let’s distribution and was upon items. growth outstanding performance-based higher to was Management up XX% activity G&A market rap expenses; for these net were continued Expense year. items, Advice & from levels up appreciation. delivered Wealth and on-boarding eight, related slide AWM strong quarter year-over-year compensation improve inflows, by Revenues growth for on and a elevated IPI. was an G&A timing driven turn of transactional and driven Adjusting

for be the Going growth up substantial and will level expenses forward, to relative the points year. and XX% and was the points XX.X% up quarter XXX full to margin consistent basis expansion AWM of the the to in revenue manage prudently we had for margin XXX growth full year. earnings The in basis quarter and

very mix business addition, XXXX fewer to the rate We Let’s in from strong. appreciation anticipate the provided foreign delivered number period, XX% G&A unwind strong that business. The timing nine, would earnings to items strong Revenues financial by deals increase and XXXX. excluding to in I continue unwinding two year-over-years compensation well prudently supported be a related were as We fees performance performance managed turn the as CLO’s. performance due in in page the asset Expenses in and reflecting only of and X%. the deals of CLO of unwound. as exchange revenue up performance good the market X% up G&A X% to fee management was margin a of benefit fees mentioned those be quarter in our remained up CLO’s translation. previously

range We continue the the near-term. to the be XX% in in margin expect to XX% to

the the we’ve to to growth year. XX. up industry in XXXX. continue and strong seen Pretax markets product of turn outflows, XX annuities be earnings were annuities operating in earnings on in equity million trends variable without similar Variable as strong to over was annuity annuities markets XX% Let’s expected. from past The living earnings seen We’ve fixed sales XX% benefited annuities segment down a being slide year-over-year. from an with annuities uptick benefits. Variable the to

product our Our The third of of sales benefit is up book year. of now sales comprises about non-living VA excellent. last XX% a our from quality

is amount risk exceptionally industry. low at the net relative Our to

a as As with X.X% annuities in death of it with operating earnings value expected. continue as results impact lapses X.X% account rates interest and to $X percent benefits. only million pretax declined is Fixed living benefits

cat losses million year premium prior reserve program. up were On reinstatement earnings from business, the pretax lower of losses. on as $XX well last were to positioned home and & pretax with the operating pressure claims the auto home rise. slide earnings though disability XX%. Overall and on experience to continue Turning claims is to line underlying cat Protection the by quarter to rates In Interest lease operating from year. well interest and ranges, The an results basis, reinsurance benefit rates in when our in XX portfolio impacted last expected year. is XX, benefited Health elevated Life as however contractual in a earnings, came improved auto million favorable

annuities. made XX% we Wealth & pace a Management Advice to and Let’s Management & businesses Wealth our up nearly than faster in earnings Asset of asset and Management cash turn Combined quarter. at Advice mix the business to earnings fee-based management This continuing our slide shift made the grow free quarter. generation. XX% insurance are and the for XX% for of the is flow the fourth with strong year full our XX; up supports

Let's turn to XX. slide

by charge in had and million. As a tax and in about non-cash income impacted of to quite assets. but points, related we repatriation the housing January, statutory from percentage at low net Ameriprise early future RBC assets, tax strong tax the Job this announced benefits of XX related XXX%. a about Cut to On one-time deferred basis primarily This quarter ratio Act the $XXX Tax impact ratio remains fourth re-measurement the lower our was

We expect RBC XXXX. to through improve as we move

reform an Within forward, Going Ameriprise. will estimate be quarter. to two between rate XX%, taken tax to and We asset driving in improvement cash be flow the management. XX% ongoing we expect tax to in the our advantageous back in earn charge AWM particularly our years generation effective to fourth

remain Turning earnings. quality, we capital to billion XX% excess of generation remains capital billion cash to about strong. of very $X.X slide of which Ameriprise’s return the of shareholders, and $X.X XX, reflecting was Ameriprise’s our sheet returned balance capital operating tax position capital strong the year, In reform. flow with impact

As repurchase those through XXXX resources we substantially. of that, take With acquisitions. move share our your share questions. allocated lowered our some appreciated we’ll We and levels to price

Operator

go Suneet And Kamath comes our [Operator first you. Thank from Instructions]. ahead. Citi. from question Please

Suneet Kamath

morning. Good Thanks.

free of start to generation our is you of free what pace wanted annual think basis, reform? the flow help Just effective cash through flow tax sort post-tax us after reform cash with on the can

Walter Berman

that, at to and businesses Tax will I’m but assume XXX my free assuming a about generating the you Act. don’t it Again just it mix by the flow you talked think will level to XXX way it’s easiest we’ve because flow. know up free were standpoint stage cash I the way this think situation pretty somewhere At and that about category. go million. that guess, XX% cash best could the fall versus million environment that into change, the is, that this between giving percentage things I particular XX%, coming from Reform it from Yes. of

Suneet Kamath

Right.

add of for estimate our then that? and earnings basis a to is XX% XX% So on reform you’re at XXX take million XXX saying top to million on applied post-tax whatever

Walter Berman

be go a Yes. good That’s as and we to fair but refining a through. go it’s measure way we’ll through,

Suneet Kamath

some have the then do offset bottom additional the And fine. just line or Okay, reform business as i.e. investment them terms benefits tax expect perspective, from of retain you think potential or a you either you rate lower of the you fall business? in in the to pricing tax to about expecting

Walter Berman

that well. We we we will some aspects as opportunities do would say at appropriately, that continue cash modulate to return with as will have that – of to be we of to like and other for continued would we continue continue investment the of to look invest some invest that as and so our free flow we

think of would So small last some -- that and that some we that a utilizes be return as generating. so year you we’re cash saw way the also did acquisitions, we

Suneet Kamath

Okay. last the wealth about you you And getting my is services, going on business. or the reasons why to the regulatory considering on business? and talk bank that's concerns of deregulation into that with financial the largely are In management just some due across and back just advice exited the contemplating past you’ve

Walter Berman

think we observations are I certainly are I good And think ones. that. your evaluating

Suneet Kamath

Thanks. great. Hey,

Operator

question comes Please from ahead. Our Ryan from Krueger go KBW. next

Ryan Krueger

you impacting out the forward? Good broker talk protocol, firms about morning. Thanks. see of several that can recruiting you now large Hi. Ameriprise going how With pulling for

James Cracchiolo

have weren't feel from ability process in about that good proposition them place. the not And Yes. track from to we as tracked a we and firms. we just have very protocol value tracked the We our advisors. We firms advisors well. protocol good the in Today

So very are appropriately to our ability to us. about advisors joining if in interested we continue good feel recruit

We are remaining so protocol in the and we’re in.

that feel is value to perspective that marketplace strong. in from proposition the we continue so And our we’ll recruit and

Ryan Krueger

in then about help And related and comp were for for expect reasons. should think XXXX? know in sticking us in expense with expenses the can us, we elevated somewhat you G&A you Can AWM, performance AWM it. what I growth quarter Got

Walter Berman

and range, certainly looking getting business patterns we’re revenue, on back to be for would in growth. in will growth say our as into say, going is be to is. to to we three associate I investing -- it there will to invest expenses. volume correlated be the five tie But revenue growth would it but range obviously that because and and go staying normalize we what if the But through, revenue I growth in again, you

Ryan Krueger

it. you. Thank Got

Operator

Blostein question next from comes our ahead. Alex from Sachs. go Goldman And Please

Alex Blostein

That’s Hey. you [ph] Good XX XXX questions new Couple around morning first the recruitment, everybody. that. a assets what you or have productivity by guest guys like their like year. these follow-up. the today once of new if guess remind guys guys? to De the are a run kind guys look for the recruits I year very business. a versus highlighted I over quarter looks over Young And you you rate something I us strong kind of transition I around Can at recruits that for then of all the numbers stand

James Cracchiolo

the channel. are Well, new the strong. pretty They system are actually particularly in, them employee our across recruits right average our above coming average in actually on productivity the now,

than their So productivity. quite the But take up ramp But on sooner as for to good. that ramp-up, three averages to two was said, to years three it them to for it nature takes some does up years others. I

channel the it that channel. And platform can has the against which you so employee of grown if there a the see in look has number our higher nicely so and the example as an you AAG of recruits margins more because the base, bit but the at platform, productivity is

Alex Blostein

Right.

at part of question if the hit the there; my second on You well. that employee the kind I retention channel as of improve nicely in so look

start lower bit guys headcount good so then little and sort now? kind kind that to phasing of out think really of we more should higher as end should number net other here sign closer that are getting steady-state of that words had versus guess that I from were guys So of creep producers recruiting of a of producers to we the lower the a employee grow in are leaving, some you but in and in a you

James Cracchiolo

Yes.

which as the through of of AAG still overall We were as think course business the the new an core integration think is that's a that you IPI core that the the of the AAG have over an is I aside. is about of answer will going channel do the channel a yes. But added and or year, so correct.

Alex Blostein

return for of Got second. I I but think capital buybacks? a the base, it. on separately about tax to XX% pro the back reinvesting hear some, the for And still and that. we discussion I go just guess kind of to guess then you for a capital if higher and to Thanks are on payout, forma kind mix guys of dividends XXX% for is you between reforms, what shooting earnings want

Walter Berman

Alex. is we XX% to That that that where to that's standpoint driven, circumstance still said guidance from Yes. but would the target. we again XXX%,

Alex Blostein

Great. the Understand. Thanks taking for questions.

Operator

Our next Dowling question comes ahead. from Humphrey Lee from & Partners. go Please

Humphrey Lee

release around about and outflows? on basis helpful. the the you’re collecting compare inflows billion fee of rates four press you what those about is In getting, management that the points, average to pretty that rates you the $X.X talk were But of kind asset questions. for redemptions the is in thank average taking morning which and you're fee my Good for that how

Walter Berman

Well, good up, a basis actually and for thing the it's the we which our over combination very base fixed net points a rate basis portion, some the which equity. I’d bit managed flow good has points, fee income overall on XXXX retain, overall assets that say of is of but XXXX or we've also the added mix, that those We a activities. have of did institutional picture more low in parent some do in a we side in lose assets

the the from we the in The rates new that's flows bring flow institutional in them to picture including have So actually that the business. really balancing. side good of

the both So we’re we domestically about and still total internationally. that but very also feel managing good echoes

well good net as We’re asset marketplace retail some fees. as in bringing in the good inflows international

Humphrey Lee

average I that at rates think new basis that would you’re in if XX than fee say that? or bringing the you in business be for probably that is overall around line asset higher the XX management is look with which to points,

Walter Berman

-- it's XXXX. the but if over you inflow looked lower about look the over versus XX% at basis a inflow outflow are question, the tad the we a for look the It’s points Walter. It’s and your higher quarter than the as outflow take

James Cracchiolo

remember of And institutional asset, that's combination a it's in and so retail OpEx.

Humphrey Lee

at And platform and getting some and then, have understanding through in is expenses it. that consolidation results my for pretty good year complete of with started would And flat XXXX. And in management, in so which pretty are asset the in going probably from part. to Got benefits much XXXX expenses XXXX. you be was of yet understanding come is at staying seems full terms looking it’s the consolidation my the the the you is large to through in most your

the can how So from gains should you potential think the platform we about consolidation generate XXXX? that in efficiency

Walter Berman

Sure. Walter. It’s

some in will Brexit, the And every be gains, generate benefits as expenses we incurring garnering to to it elements. relates but also that relates -- we’ll the We risk efficiency a with have relates will start the conversion across capabilities. global we management really that you the have of this is and to this aspects capabilities and and the on the ability consistency offer products

on beyond up the it, going some saving. to will we because be is it's dollars going dollar give us initiatives. going vastly gives So will already not we’ve But main be picked it’s some money get us and be certainly But the the savings, to we we focus spending to of that those but capabilities. it capabilities new

Humphrey Lee

you. Thank Got it.

Operator

from Please Mewhirter SunTrust. go ahead. comes Our next from question Doug

Doug Mewhirter

morning. Good Hi.

a very you a G&A table your the idea side what First other European I – expenses – complicated it's – your would been process. to the for question impact it’s do very the be know of it’s operations. I better from know on message to of have

if wondering be? I the just as down narrow you sort at all So would that to impact of what was

Walter Berman

and Yes. looking research to level process and obviously how extensive through We've gone the reengineer. an at of

say So I would associated the bit and were that down we a that it. servicing with maintain capabilities bought still cost

but those a course, So we XXXX, have be should of major reengineered us that for the some can there’ll in obviously we where manage. of cost event it not be really levels

Doug Mewhirter

fourth contribution quarter? and from question maybe unwind Walter. CLO my that Thanks for What the And second the that. Okay. the final in for was dollar

Walter Berman

the XX total was XX; it’s [ph]. CLO, or [ph] From around XX

Doug Mewhirter

$XX [ph] million.

Walter Berman

Yes.

Doug Mewhirter

you. Thank Okay.

Walter Berman

welcome. You’re

Operator

Adam William Our Blair. from go from next question ahead. Please comes Klauber

Adam Klauber

call year if what you you be Last they’ll size? do look were bolt-on morning. deals, for did does sort deals. that and pipeline the of How XXXX two Good I similar

James Cracchiolo

Yes.

in think opportunities up marketplace to be we us appropriately. We’re or would that look interest at still continuing to of that the

As that and actually you ones can sense. appropriately that at you you look make know ones that do

and So out sense will marketplace this come XXXX, we to will the that is open and year. we're that looking constantly in things at think

but something is we our be part plans. can we have those ones acquisitions But that small there along it So lines, as bolt-on. of that will

Adam Klauber

doing then than give would XXXX Okay. XXXX? that say and is I don't new saw better and the Thanks. management say And wealth know exact advice net business in we in you you in your data, but XXXX

James Cracchiolo

in. client balances good had cash client in our yes. is strong very consistently flow cash where answer still new from even being The Yes. the very the activity activity, We’ve are flows new and coming high deployed money

And our this even grows increase business. feel and year. advisors very productivity. to about the good helping bit a nicer actually that we’re advisors actually So are do we more And going generating

concentrating and even that our we’re in a year going the our activities experience, the into as investing life course advice to both client hands. advisors so, our as bring the not more DOL the of we’re to we’re well in that experience put to Now digital even on capability over advice tools technology

feel very we So good.

clients. including some and the for it's Walter activities and investment activities And good of said our is contact in of some things some technology engagement

continuing the our we’re capabilities be better even more the invest course advisors to really and year So to help engaged. over of in deploy

Adam Klauber

detail just Okay. And question. Thanks. one

the If fees quarter? for said, the is management dollar performance haven’t what of the and amount you asset

Walter Berman

if gave them. have fees, the… don’t but I back. performance I guess, PTI, get don’t to I well, I amount I’ll you Dollar

Adam Klauber

Well, impact… the PTI

Walter Berman

The PTI performance fees and impact, CLOS, I six total the to gave then go you have is you a had is the That was the compensation. XX. through then

Adam Klauber

XX.

Walter Berman

front revenue you and for how was much the just XX in so performance – of that breakdown I is how for have side, to CLOs and on Total in expense fees the what for again, much the property, me. call was don’t but

Adam Klauber

Okay.

Walter Berman

But before get I’ll out. it I’ll

Adam Klauber

Thanks.

Operator

from go next Our Tom ahead. Evercore. question comes from Gallagher Please

Tom Gallagher

kind was changing you’re target And not RBC been imply of morning. tax million decline $XXX drove all capital excess what decline? that mechanical the driven? does the in that of Good there’s change despite reform you that that describe your Walter, Can fact million, the RBC XXX in RBC.

Walter Berman

Sure. is answer their guidance the year. us your go by of And second will The tax the required is question ability back To be rating effectiveness the will The driven best be your the changing to by part it the be. we RBC building reform. agencies. answer yes, RBC given we the and and driven what the and any question of the is have as to the they RBC through that the I RBC my have will required knowledge not

Tom Gallagher

of operation, then XX in And just the that's highest corporate on long-term loss the Got care had. around you. the you’ve loss the million, runoff

out But And had reserves for given, But type comfort far GE then I in your just should your that it about same can business. about think severity know think the how take back as mean guys as clean talk normalized in comfort you we I I December. a in a in called of bit I charge large see. market can and little you exposure? the you very

James Cracchiolo

Sure.

is go we to that reported above say Before standard. just want RBC that I XXX the there actually I

at we're a So good place that from starting standpoint.

and I – will basically and change. and cohorts daily XX%, not claims about was of claims payouts was The that new we that the it. come than on XX% book only claims. was believe relates in were related that As the We having to experience that not saying higher say do would That is to loss. That XX, claims. PTI was loss all majority a you’re not

trend Our line that active did and at we analysis subsequently reserve has adequacy and now as we extensive changed. look

around normal. it, other million million The in to loss of LTC we is $X which parts had $X

that. constantly have and with comfortable up transfers we It's we they we adequate are some feel reserves. again extremely is to certainly looking timing part feel We didn’t we gone And that and exact do it had issue that pick then the monitor. we But really, other we -- lapsing amount. reviews and at the was that with through extensive

Tom Gallagher

Okay. Thanks.

Operator

Our comes Autonomous Bass from ahead. Research. go Erik next question from Please

Erik Bass

Hi. Thank you.

asset and on pricing or & the any I you the management expect wondering have rates impact wealth management just to one fee lower if businesses? tax advice or taxes follow-up on and First, had rate neither

Walter Berman

in activity marketplace levels as the level in certain management driven activities, on and necessarily No. tax We we’ve to is rate. adjustments or appropriately fee that adviser the and an decide the appropriate based clients basis, be in AWM but personally will based the at it's on activities by we well, or rate. value asset for going And competitively, client doing to look by make driven the whether tax be their nothing of in on with institutional not ongoing been retail it's for and holistically

Erik Bass

Got it.

seeing So of gains? aggressive you’re becoming more pricing tax the a people with benefit any competitive on pressures not result as

Walter Berman

at Not point. this

Erik Bass

Okay. what the cash us in XXXX? hikes And what then seeing get guess additional benefit competitive can you in anticipating the update of terms on fees from rate I that may also of in dynamics and around you're we you're terms

Walter Berman

Yes.

than beginning some low originally but there’s because over – we’re it's anticipate would've increase we of very year. much base, we in and a follow less the of been that have the seen been the We year certainly coming

observing, seeing based gauge exact stage at the are consistent the but to competitors and we fairly us are be amount situation. being very will to this upon proportionally certainly and we’re that tough So it's shareholder to

and -- increase But and so will imagine to the would will we we'll we have what are if competitive we and remain we reactions. think competitive would I would I gauge that's the to competitive -- gauge. So percent have

Erik Bass

it. Got

some So able expect of benefit you retain of rate be the hikes? to at still least additional to

Walter Berman

believe is, Absolutely. what And that the some. we is line trend yes,

Erik Bass

you. Got it. Thank

Operator

go Please Kenneth from Lee comes Our from next question RBC Capital ahead. Markets.

Kenneth Lee

question. my taking for Thanks

growth flows, was by as be strong more accounts? inflows, the from could very organic the a specific Just shifts What looking my recent wrap highlight annualized potential would Thanks. the much quarter. for wondering in I'm just you strength commission-based drivers at particular how it driven

Walter Berman

Yes.

has included to of client activity number we from to that been of seen over years of over fee-based but for fourth there's accounts fee-based been inflow greater also course a the So commission-based course business going the business. shift quarter, definitely and the but the year, of that's last the the

more line And as doing of at will business. fee go based to saw We more saw the that so piece very still on the advisors good that trend so we into fourth we flows business as client activity quarter, so the as more see didn’t it transactional continue in look area. to a activity continue – advised based, their with to way just it a but shift, a base, to going commission the

Kenneth Lee

quick more just And Great. one.

management more asset versus more Just is of that remind the I assets of general call party AUM? you in could AUM third just much management, I that terms account Thanks.\ guess how would under us

James Cracchiolo

much how The account? Yes. Asset Management, general is

Walter Berman

General is around billion $XX account $XX to billion.

Kenneth Lee

Got you.

very much. Okay, great you thank

James Cracchiolo

And The we revenue performance and the billion XX. answer is question fees. the on have an on is PTI XX

Operator

John go question O'Neill. comes you. our from Sandler Please next ahead. from Thank Barnidge And

John Barnidge

in couple up. one A and loss I in generally XQ the as power follow and result a lot a in then is questions. you. have of your of XXXX Thank There catastrophe pricing talk industry. activity Can about you

Walter Berman

is because raise premiums pricing When you power, say to that our the of it, ability you... what

John Barnidge

Yes.

Walter Berman

tough because very non-anomalous it that it’s with have you losses, to dealing again to It’s they rate. cat and are then demonstrate pass

nature courage; fires of We really the unique was the have of it them. two California

we ate That be will The first one of stop regular trend is damaging. we pass larger if it. we to portion obviously so it’s evaluating course and of ensure being it the pricing and is what the state the years for the put will that basically, is into and and part have it on and be the then and be team through we will incorporated evaluate then will – most pricing certainly line aspects but competitive, filters, evaluating

John Barnidge

light Commissioner of California policy there pressuring tax rate you of And completely the is about that? have Is reports then any in corporate that there the possibly so holders. along the Insurance reform have a press about passed been property insurers for commentary lot reduction

James Cracchiolo

I don’t, I to No, that figure don’t want one mind. really not. do myself, you out I to have if don’t

John Barnidge

answers. No, that’s fine. the Thanks for

Operator

This for you concludes may conference. disconnect. And now Thank gentlemen. you participating. Thank ladies today’s you and

Ameriprise Financial (AMP) 25 Jan 182017 Q4 Earnings call transcript