AMP - Earnings call transcript Q4 2020 | Ameriprise Financial, Inc.

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Operator

Welcome to Fourth Quarter 2020 Earnings Call. My name is Shelby and I’ll be your operator for today’s call. At this time all participants in a listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded. the to turn Charity. now will call Alicia over I Alicia, begin. you may

Alicia Charity

Welcome and Financial’s Sylvia you, to good Thank call. morning. Ameriprise earnings fourth quarter

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

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

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

operations. the and you forward-looking financial XXXX materially Many to focus And insights to adjusted in performance. our events core the Jim. today over more and We our our today’s GAAP of be annual call, found financial XXXX facilitates plan reflecting business to quarter risks release, can will for of risks company’s measures, on Slide that in into see the this operating the statements Some as see results, our number we performance revise we On fourth it page of during list XXXX to numbers of non-GAAP could about I'll by meaningful of with of at we overall our hear on statements X, website the believed to results that will Specifically, management comments various today’s numbers forward-looking update a make and earnings you’ll only uncertainties. call cause provide which management’s our fourth these results These enhances turn believe make to or the shareholders, call XX-K be involve the makes GAAP management and publicly on report a statements which results. and their and factors quarter. obligation on the Reconciliations our our the can non-GAAP adjusted different reflecting that be operating references date report. no that, understanding forward-looking from top trend of Below future and may www.ir.ameriprise.com that materials speak sample operating respective analysis. of A and found expectation be statements. operations at forward-looking, actual underlying

Jim Cracchiolo

for earnings fourth and quarter joining our thanks call. morning, Good

markets, $X the billion, with very in driven proposition, up release, news, As over saw equity excellent records, including under the considering by strong. the strong nicely the to an of quarter the trillion, ROE quite our positive and challenging strong equity And in be administration U.S. In X%, XX%. rate important good, milestone. election were likelihood and further business quarter, set investment interest business up and rallied of a quarter, Ameriprise new to of operating the headwinds. fiscal the X% Revenues share offsetting remains are to and results. solutions in Earnings per assets quarter The fundamentals value ending quarter outcome delivered on you continue our in stimulus. year, inflows and activity of strong environment. vaccine positive at increased $X.X very strength our quarter markets the translating the we advice management and an expertise the very Client also

strategically in execute to good continuing as to invest drive reengineering position. as quarter, We're make a our continue against in expenses. well looking investments how to operate. to G&A X% decline efficiency the the It's resulting During core extend and in we to goals, we business our always

operating of We among our best more which in shareholders, services. earnings adjusted was returned XX% than to financial $XXX also and the million

as cash to for consistently key $X return flow generate differentiators well For substantial us. the clearly, full-year, our to as are to to we returned Very and billion. reinvest free shareholders close ability

with by Beginning a driven excellent a volatile, Advice very positive Management, of in goals, organic Wealth client our clients key differentiated advice, was markets. client XX% & keeping disruptive a to delivered Total $XXX their focused we where clients which flows and delivering on billion, turn and with year. Let's growth. assets strong to level up good were

know, investment us nicely. advisory quarter, to billion, client we've close business, adviser were leading focus net grow our growth. you great was a and As and continues a indication This another to built engagement last excellent over wrap the record it $X XX% on up of inflows In for year. and

over Meanwhile, bouncing more ended invest quarter. year. grow make activity to client X% billion clients and for to And from to compelling up Another balances and our $X.X back highlight continue quarter $XX.X we're cash billion, last continuing was and even transactional last the up at offering advisers.

capabilities, see to seamlessly, allowing digital and online their of and engagement advisers clients transact follow have good their continue interact progress. to very the goals our and now in and majority clients We

spending for tools on in integrated reporting Our more and practices. capabilities They advisers are our their financial adjusting that and which interest more and growing their and with up That's adviser rates. business time was our utilizing clients efficiently technology planning they're processing evident X% increased platform. are productivity,

of share is our being leadership. our the recently Ameriprise of kick focused about strong including reflected productivity support culture, to You've one our the an continuing of heard caring level adviser are I truly energized also and success. best-in-class Ameriprise growth. drive and This field me and high on that greatest leaders of off recruiting spoke in with is field support benefits to They're all year.

industry times experience is competitive can level their an of track from and the proposition, strong program take And X.X recruiting have joining drive that than We're to across that support and recognize level Our technology effective in help quarter. results to us XX grow extremely and of with the advisers of from faster next offers peers top the exceptional fourth perspective. advisers a compelling experienced practices based deliver them which value continues who adviser is very virtual Ameriprise recruiting client success. a helping we advisers record

deliver. strong. to see also financial experience great services. It performing practices pipeline client This momentum for that industries, centers recognizes So best they the XXXX, continues, service Power far, the recognized certification by across just our again were this once not contact in highest the was teams all and recruiting remains from excellent J.D.

Regarding sweep We total to billion, grew bank, the of plan move year. assets billion deposits. deposits additional to to the $X $X with this bank

product up We up the strong quarter, to liquidity. also worth response to added product at an net appealing for high pledged loans XX.X% margin and portfolio and the seeing seeking was points XX in good Wrapping AWM, clients basis sequentially. a was date. we're It's

bank. investments be only up earlier, mentioned to with X%, in G&A expenses the well-managed I continue As that and includes

doubled & seen products environment success we well interested the while while the a in year, plan further quarter. as driven VUL and the are our this for introduced & mix grow sales is offsetting with the grew earlier of business XX% down some segment part know the reduced XX% Ameriprise improvement than our expectations. a clients the environment, benefits, living firm. meets percentage IUL time. to regard regarding products. in which performing our focusing Solutions good reinsurance sales in This rate needs reduced I risk. business transaction. the in Protection up in overall, will without products. annuities, of Clearly, the increased both to smaller sales annuity This We're benefit executing better Next, of you In in of over by X% structured the sales offsetting progress is a continues this in the line on more of Protection living fixed reducing our importantly, our we've rate protection, VA generating returning increased With which of product nicely, of product from given Very the shift quarter-to-quarter. year-over-year, quarter, sales total Solutions. business, sales higher returns product represent Retirement to were mix Retirement drive flagship Sales to our Variable

actively looking are by to a rate. are encouraged transaction We the in XX this year uptick and year the recent execute

story serving to in The growth. clients a on share continue build profitable as well we and an driving our to Asset have progress manager. Management, is team Turning active great to

targeting help We continue North Threadneedle with to billion. in and XX% our of growth positive assets and we under at organic efficiency will are independents continuation We're the With in completed scale drive The and experience. to our a system, grew and client legacy we including drive portfolio in investment across we're of additional data engagement importantly, And our and including to quarter, the our also partners global final investing important platform strong In relationship and broker-dealer trading in our results phase strengthened U.S. installation large markets, in reduce better $XXX advisers to distribution the with systems. compelling performance. Columbia firms We're making, of have the positive flows management globally. work excellent the delivering digital a management teams operating regions, America. which investments duplicate including investment helping with

Our cash Asset our business is for nearly XX%. and And strong Management free to flow. overall earnings quarter contributions the making was margin

remain to XX% in to XX% the expect we ahead, Looking range.

should have However, the to through come performance Strong levels really pandemic. our market been and our this in well if at collaborating these hold, investment end. has teams we essential higher success, been

funds, had strategies. We over Columbia with and on platform domestic our the shows beating With which weighted great and on over fixed an disciplined and fixed of income, funds categories: that's of above and across all breadth XXX, strength to XX% same on delivering or focus. global have the were five an a and than steadily international while exceptional three equities, More are our basis And global taxable weighted had asset also multi-asset a time over we periods beating performance five-year line-up. people asset strong benchmarks our were strategies. star medium a basis our basis, invested equities; of four In benchmarks year-end, performance. to across frames. medium above regard build XX% research Threadneedle and income; product At funds one,

continue strong. type year positive with of focus flows $X.X So quarter, this we improvement Overall, for be the to net parent the outflows, investment were growth from across a former the an billion ago. excluding business, performance billion of $X.X and

that In March. net in reinvested momentum flows and flows, by this the total the driven by $X.X terms continued in positive U.S., months of were we parent, former including we net retail were included of were XX These location where year, for dividends. excluding inflows positive billion,

For the had of U.S. net quarter, $X.X retail inflows. billion

had investor excess XX of in our the particular were In $XXX with net of Europe, which And U.K. terms quarter platform the and XXXX. terms fact, resolution economy to of EMEA of Brexit institutional, of net gain sentiment. U.K. and Continental We're continue be inflows of in strength in grow. strategies Columbia multi-manager fixed income the more to equities, than that across have inflows And the sales optimistic we in the we in were global opportunity that's million billion in reopening and a in offset outflows positive will In and retail, XX $X gross in more traction, gradual in than lineup. significant

compelling and EMEA. The strengthened a to inflows of performance. parent looks pipeline lineup We attractive driven across recently client have forma had our quarter, service. and our team $XXX We regions. by ex we continued excellent net added Relations million, of the capabilities in Consultant about investment In strength

sustain So management, the look pleased ability overall, of price over to last with Stepping the across in metal back them. a position. terrific I to we’re quarters when momentum very I'm asset and number

and month generating. of further strong during business the are our our drive the results activity navigating about while and good proud and we're pandemic, level result on very a stayed resilience reinforcing seeing. of we're that continuing I From XXXX, deliver of the record We our they've advisors into high you're shown a of a level differentiated they've Nearly this return. incredibly perspective, focused capital clients strong client that and engagement times. feel continually to uncertain employees and delivering I'm

fundamentals that, your Our balance strong generating are flow. quarter cover more take and the questions. sheet Walter and free then in I'll With will excellent we're cash detail

Walter Berman

than underlying rates. strong quarter of EPS interest financial and metrics, Thank growth operating strong with headwinds more business you, adjusted low from offset up delivered X% Ameriprise excellent organic a as results Jim.

reengineering administration Wealth and management trillion year $X.X targeted and Management. in future our a reached the Advice under asset for of for We inflows from growth Assets & RAP investing including Asset nearly $XX record Management while and billion management. achieved

reinsurance lower to to effectively profile retirement are continued XXXX, risk, protection we manage and billion continue capital additional We $X.X over margin, and offerings exploring of shifts higher our solution mix In with to actively opportunities. shareholders. returned

enter This fundamentals, free generation business XXXX. strong are segments. as coupled Our balance underlying with business sheet sustained well growth cash our we us positions across flow driving

turn we bank. growth, equity general and and by associated the business period, the higher of in appreciation. administrative as driven compensation After to even Expenses net million revenue strong benefit impact of are interest investments short-term X. rates Let's Slide with Ameriprise business for share market adjusted and include underlying $XX excluding the grew operating prior expenses AMP quarter also X% in trends performance. down of make the X%, higher including price the strong appreciation

able are through disciplined quarter. this reengineering margins growth, In rates we We of strong in very total, to initiatives. over XX% and achieve EPS result underlying the strong excluding delivered interest

Turning to Slide X.

management delivered organic robust As Jim mentioned, & growth. Advice Wealth

benefit and target in traction a recruiting, and continue sustained We effectiveness more our from our market. personalized digital of tools adviser to of experience, experienced client success reaching

headwind. good assets, wrap strong, XX% driven been Page the was rate a XX On operating and foundation we XX.X%, can X, net financial interest have points see margin operating adjusted would core improved $XX year-over-year, by underlying basis you with $XXX improved rates. in as and million productivity. On basis, Pre-tax XXX This after advice market forward. in is wealth improvement transactional levels strong points. well areas, management management. excluding and change results up was as activity as client As expense we move the adjusted inflows, in continued higher was earnings basis wrap which margin This flows sequential adviser million had to growth a interest these strong

to Turning Page X.

continued a financial headwind of cumulative trends. for improved in good very significant The impact us been delivered management has past. and outflows the Asset performance flow

Revenue is continue, excluding related in flows, improved flows and billion, for $X.X diverse this market and would revenues improvement us inflows that table a operating is Investment were appreciation X%, ago. provide quarter, trends, this fees. after a for set. stable for and performance of in and that former year, across performance. pre-tax General Adjusted adjusted and the Overall, disciplined a flow which billion performance that making is has million. remain by inflows reengineering administrative X%. reflecting normalizing expense net for related growth. As we had stake from the if In other strong grew tailwind a the rate is earnings flows margin. investments Putting increased expense, improved for XX% excellent timing performance, together, expenses of declined, a Adjusted the this operating the compensation the encouraged are we fees managed, G&A reflecting XXXX. parent $X.X of timing resulting with year inflows product very XX.X% both continued progress financial business $XXX fee funded well increased

to with in and perform protection market continue and environment. solutions in rate to turn XX. expectations Page Retirement this line Let's

total, claim with new up products profile. executing Like year, are shifts going our along We sales risk our with claims not prior are industry, we've uptick counts year. in business product, benefits, to limited a were down forward. XX% In results and million. at in expected by significant decline the among with that financial extremely earnings well we COVID-XX, managed. the X% more lowest Net the been to decline in in life, in experienced seeing expectations. our effective. is environment. as adjusted are In in This remains the the to on were Overall increased a risk industry, to limping rate a a $XXX line strategy hedging quarter, of index impact. mix of this were favorable without has living amount XX% shift These operating and a than product in continue with higher-margin protection, X% continue VUL be an sales benefits. Universal variable our to is meaningful but products annuity driven structured sales in attractive VA the Financial increase Pretax in related

prior improvement to year. the Turning from Other $XX total, XX. million million in a the which Corporate had loss quarter, $XX In was a the Page segment and

company approximately Excluding compensation the The corporate related XX% to portfolio. incremental the prior-year million. The to had performance. quarter period affordable impacts blocks, in $XX million year of loss in the elevated lower care segment closed new earnings had in rate loss the had In the appreciation our of due $XX improved of annuities share terminations Fixed $X price and closed to housing in current million related long-term increase to a losses related and million had expense significant to impairments $XX block, claims. the interest low a environment.

this year. execute We additional to transactions continue reinsurance to opportunities evaluate

Now balance let's the the to sheet last on move slide.

equity the at balance on at hedge shareholders the for the strong, returned over investment well $X.X quarter of was and including full a $XXX Overall, return XX% that, year XX%. in the XX% of effectiveness capital as an operating position for fundamentals as Adjusted With a we'll to Our full year. the sheet million substantial billion billion, We and quarter liquidity for result portfolio. take questions. positioned totaling dividends company, the remain parent excess strong $X.X remained the in in quarter. extremely excellent through quarter this your billion buyback, $X.X defensively

Operator

Instructions] The Suisse. comes Andrew from question first [Operator Kligerman from Credit

Andrew Kligerman

I'd & phenomenal. mean, $X.X flows. the Wealth like Wrap billion start was to with net Advice I

this run sustainable Just what drove little quarter? might was you over the X.X color kind $X background? give be And what on ago, a rate a a billion. we the little Could just it range? years a of thought so What - high

Jim Cracchiolo

Jim. this Yes, Andrew, is

base. flows prior acquisition our our still even level client a the up new you our very year. bit good saw we the We activity quarter. actually - continue with advisers. client increase course more. fourth in And were But a in of picked see having we strong as good a of We an the activity saw grew We to of even saw the over the our wrap quarter, results year. pickup We over of in

that the would the some and a to a the I that be flow activities as came consistent up. feeling and vaccine Now coming But economy about would of continue say seen could well better strong we've more people probably little idea in. as open

the factors. we So, And as the organically clients growth both underlying have we we good some as well that feel added. about it that new was clients from legacy

Andrew Kligerman

to admin outcome, real I the across regard board, just with then solid And a general down year-over-year. X% mean, and

it were million was year-over-year. quarter. $XX that earlier of some was the year, guiding general admin the about we $XXX I million you last think price. And looked think down to I at share expense And about decline as

Some investments million company. But of were go that further? making of could looking forward, you see kind was maybe you getting in $XXX kind toward objective, you could XXXX? looking are other G&A back that into into the Where of that million another pickup $XX just you

Jim Cracchiolo

Okay.

So we that the $XXX million. achieved definitely more of mentioned goal we to you reengineering than

So that's our embedded numbers. in

the I course fourth think what for just about but been of the overall, you're that, quarter, and like part the seeing of the year over we've remaining talking not after the pandemic.

had And did increased reengineering them. we goals and so our achieve in regard, we that

very We also we web making. being But a some increase expenses and the to wanted activities. we add we the managed having were are in more some investments of capabilities to our would that Our and to also of say, well. to bring from productivity the bit wanted great both even and perspective a client did technology the I accelerate because we're advisers

dollars actually our in higher So in a was than bit year last year the agenda total before. investment

I what on and of some say true-ups saw mark-to-market. pickup were some programs and strong of in and fourth more the What a price that the quarter. the would and embedded from absorbed is And appreciation on compensation our our in does in you year little deferral was some based that the that bit a stock So expenses numbers.

going about So the the Year. into I feel good New expenses

as economy and you if T&E we're look increase will do to more the we continue think And how continue growth, market bring expenses to pretty can up as that. some travel we we we other agenda. do expenses the investment but and they well. manage think the going revenue we'll back opens you extent. a But And I bit the climate business know - I that time, at growth our over and some to

Andrew Kligerman

close was block Maybe the the just that you money-losing think up lastly, like line the you about what to And fixed million kind of on Target but $XXX how I think million to free is $XXX in that, annuity block, a do in fixed sale? capital, million? annuity with imminent you'll quarter. lost $X get

Jim Cracchiolo

Okay. I'll the on let Walter fixed annuity side. respond

Walter Berman

we So And to are have working that then capital, gauge there. and we that's have I looking. as to we free will certainly but basic certainly capital implications we up believe we freed And the do evaluate. Jim the said then amount said of we up my reasonable talks, feel and actively in the certainly, we're of that and in rate, a

Operator

Our Lee next Partners. question Dowling Humphrey from and comes from

Humphrey Lee

to with trended and January? staying The pre seeing talk you you to for a duration activities moment. for and transactional into back how throughout funds loan are the Just AWM about be quarter appear Can mutual products levels. they pandemic what

Jim Cracchiolo

Yes.

as we second activities, in got saw So the definitely normal quarter pickup fourth a that to a the of back to to third they more went from transaction level. we and the

fact, up year they before fourth quarter. is In the over X% were

in mean felt pickup our business activity, even even was the some in So, in sell was, our both and and pickup long our as you a but as where as we the structured I pickup insurance continued business. well The annuities, annuity we brokerage in duration. there mentioned, good. in strong business a

back through like normalized that gotten as we've Year. the thinking a to feel So continue New we're and will more level, go we that, we

Humphrey Lee

of returning And you think AWM kind plan as priority XXXX, for in it's management? asset then M&A shareholders for of capital you to remind versus whether in capital how deployment, of can or terms us about deployment kind terms you of

Walter Berman

Yes.

regard, continuing opportunities dividend, years, appropriately both a make and increase think - first our over From seen based business we investments growth that that us appropriate will very on is opportunity. do we that we then generate, also the So may, but the coming that in And you've free cash from. flow to us evaluate buyback we which that strong grow, we in there us deployment capital the can culture opportunities productivity get and the that returns strong, us of as help we what to into what fit is right good for get very all, environment consistent what track. more we the from disciplined the we're would keep are see have on evaluate good there, to our but of strategy, and we acquisition about, would strategically both

And so we out will what lines, we know, continue on to that evaluate would that, do we generate. we along the as, have help you would well as excess based capital those that as look we cash

focus So that that's philosophy. changed look we we it, move we way we'll to haven't that forward. as the continue And way at in

Jim Cracchiolo

I this about targeting year. Mr. say for that XX% still Okay, Walter, we're just

I buyback. think on your was question

Humphrey Lee

just Okay. kind I to capabilities? is a elaborate M&A guess on between little side, scale the any bit, of preference versus

Jim Cracchiolo

additional for assets in us more could do add mean, it we acquisitions, we our and costs. ability capabilities, platform, invested that more into minimal add continue provide I that additional heavily some grow. our capabilities and technology look to will We to certain and very scale, with does for we've

about a asset that But, we strong primarily, have we globally. how that look So have well. as out round to we continue ability feel we and strategically quality manager

Operator

Campbell Barclays. comes question from from Jeremy next Our

Jeremy Campbell

the are inflow momentum? maybe are a maybe going showing if little the a And there stick accelerating strategies flows, performing there outflows, or wondering, kind here detail of management fading with showing would around could high be fantastic? strategies good either more some inflows, headwinds to Just time want give you from which any some color. and for an But, and just inflection fading, you a color minute there would be spend fun hopefully, asset that

Jim Cracchiolo

Yes.

you look if take strong. fun especially three very think if supplemental, are three all, look I and on as family. five I an and across particularly year, one, our the years at had equities example, we've benchmark at, first of the five mean, see, beating investment you So performance you'll strong our

strong is having is very strategy range. their income Threadneedle fixed performance Our strong. across

my there billion. feel gross we we funds, $X that so were inflows to were. good XX broader had a good it's the I in broaden than where net from a as have lineup range So points, of a and in more funds like we mentioned over funds, of talking number in We

income, in So we or activity it in of there. particularly our the activity - And ranges, in and have see income-oriented global and like et manage allocation the of to funds are In certain our fixed doing we seeing equities, continuing lineup. flow that pickup in in equities see We're you a some well. mortgages, good income a risk cetera. equities, are European in also funds across in we

we You know, going shift growth which a value see and lineup also and a as have more a of more to bit the maybe, bit into we're probably there little a well.

it's from look that, perspective. would lineup So I reckoned as strong a if would say at equities, very it's our broadened been I also in out, so you flow

Jeremy Campbell

that outflows, the then have past from overall And numbers improved? maybe the inflows that's inflected as over notable anything year

Jim Cracchiolo

more say, where, at seen concentrated always be can don't strong on level you performance me. of funds some you are previously sales as look probably wasn't front I in back, some in like bounced of turnaround it. has may We have that the activity, I know, that there's of know, would just like, redemptions. a based we've the that lower

that, nice some those groups a fund are rectified of some seeing the And some But move fund areas of few that I our growth our contrarian select like and et themselves you outflow. into have performance, really cetera. like net larger area, so think of in a

lowering a bit or So is it's picking of and more a that of more some the up point sales turnaround of adjustment to the a redemptions? in yeah, your little - - of

Jeremy Campbell

on just fixed annuity then final one one, a block. the clarification And just

widened the I thing of with little rates has bid/ask we've that in like think, last out the is you a that industry one rising year, quarter in heard the bit. know, the

too. You are the that, around even sandbox already alternative among especially, guys you that assets, in with seeing know, there guys that, of with, have getting what now played demand Blackstone bigger block for you know, the

Jim Cracchiolo

to? Walter you want

Walter Berman

our seen widen. Yes. as We're indicating. It's are comfortable. excuse some can be are Walter. widen executed. that And ranges while but seeing me, We're very certainly rates well, you're narrowing spreads, We've demand, good transactions spreads feel we

Operator

from comes question Kenneth RBC from Capital Next Lee Markets.

Kenneth Lee

Thanks for taking my question.

one the around advice margins wondering, you bit little could could a we’ve over a trend Just you in color think of wealth if a quarters? nice few Thanks. margins on just give the Just us seeing the last business, been recovery near-term? over management where and

Jim Cracchiolo

Yes.

we see that's for strong still So of if say base. more. we I advisor, X% continuing, the very see was we a across mean, you up. I advisor as what is, the sort quite trend large line think would or up, interest probably our And productivity productivity adjust

And a positive, as financial - is we've planning is seen fees and in our that's our pickup saw so flows really up. you

So, would to that want of to see continue the to we trend margin line continued that, say accrete. I

a think well. the on will bank, also of of helpful that. as We we interest be into that low point sort And there, as hit spread more deploy bit side over we a time, get the some and

that to would into to want probably see a be percent back targeted margin plus XX the continued I get So, to range.

Kenneth Lee

the Thanks. But is XX sounds it much that year to increase quick sixth and like, further for in yields? any it's in want just yields annuity one year rising. And whether just dependent to executing transaction reinsurance follow-up on XX check further see again, not on on too just your predicated outlook

Jim Cracchiolo

from certainly, transactions rates spreads in are that range, - Well, - I they at the the that and the and looking can stand, say, because the done. with in where we're be would we're

in Jim we beneficial, you be certainly a we pursuing. while in. feeling But are higher if comfortable are And this certainly as coming rate get range. indicated - So

Operator

Evercore. Gallagher comes question from from Next Tom

Tom Gallagher

follow-up done a haven't you've doing executed transactions - annuity term broader you're insurance because reasons care guess one about risk thinking on potentially, separately? a what transfer, transfer, potential is we being Just considering we heard on those other on of that that businesses, you're risk long fixed think including or should or yet, deal the I something

Jim Cracchiolo

than. doing there's and we nothing a in look at to businesses annuity it, both We So, Walter or Tom, I and would probably fixed ties that individually say transaction, comment. evaluate always have fixed our at us something and transaction collectively. addition as different look I'll evaluating them versus together, But

So Walter, you. I'll let

Walter Berman

Yes.

focusing this. me we that that's confidence. the that has but entertain on and And And the our earnings as from annuities. and let quality On it to and fixed will higher continue certainly look So fixed now, there's potential, annuities, it. said, But everything, we're a our book focused say and from standpoint, just what we're on. has right that standpoint, at Jim of will we evaluate clearly,

Jim Cracchiolo

Yes.

new lot emphasis put Tom, as also we have The you current other I in the thing being would on, say, also our shifted derisk business, saw, is both business our but a the us fixed and we the to just like and client for to closed off environment. which had variable, guarantees, both is are now shifting from structured shifting insurance in rate better are this from fixed, a product, book,

or for reinsured So should or mix we're us. sense we change but continuing definitely other be that mix, could make evaluate that there be that will the to continue that to books and would if are of shift

Tom Gallagher

of I sure you I unsustainable wealth. quarter's Jim, guess say $X move-up be - new level heard transferring there of could just flows AWM? or to advice in And guess, want big terms about quality and like level a that nothing unusual be assets to fair feel for that to result, this higher this I of able the was a and almost you could the wrap I ticket, comments sustain? advisers the on like to new billion be might your guess relatedly, the new confidence flows, over? just in Do a make I is The it question and

Jim Cracchiolo

the had of Yes, we've would in bringing I all more new the flows, an - ongoing of total say, advisers. the increase of Tom, mainly I full mentioned, of as

is there that's in a quarter. special good advisers in so in the continuation. And It good I you consistent. nothing of level the fourth production. But mean industry saw, top as with bring been to we continued a was

up picked good, second the pandemic that quarter first Third quarter, and after was nicely we the brought even quarter the good. in

I bringing So franchise. of ongoing clients we're would line well as that into spot numbers. activity current as - But trend advisers client now was are of current more it flows the new continues say that in that increased from an as the our

it, I went say quarter. all more billion $X in bit industry it from being and some we a the underlying to it’s maybe base? in continues the billion the billion because opening. that, work right? was saw a the But $X at whether the third think Now, wasn’t more optimism the activity, I that fourth $X would activities the clients tell I of good quarter billion, about put in money we feel can't level, it of pickup X some you to level like it

six, So I - the feel is tell trend there move there about underlying no can’t good I good major if seven it's that year, whether be a we that level seasonality some is et exactly, or but this mean, But cetera and as feel there good underlying, there you will I well. of always as or I disruption. eight, into

would say. I what that’s So

Tom Gallagher

bit, talk And or should one year the of over the bit final increase moving now? about rate of little businesses modeling about higher tax moved mix two, next then just The little you to can an a one. up you we Walter a tax because think would some see how it

Walter Berman

Yes.

would a say think correct, I yearend. business because the I I probably reasonable pretty to the maybe hit much we mix you are of number. up move for And And like a target something It about. number our up move think say, shift. would be we're, good would XX% will So

Tom Gallagher

and you in Or XXXX XX think? XXXX would

Walter Berman

No, XXXX is this

Tom Gallagher

Just gradual. - more

Jim Cracchiolo

obviously. that's and laws, now, change right guess without any best tax XXXX in

Operator

Suneet next Citi. comes from question Kamath The from

Suneet Kamath

have question sort positioning and, how distribution how there? how changes and around something think a know, like think of billion that inflows of, year, basis, at there's I wanted you like to it much couple that? this help due gross improvement seems you high about years to, can we're over If due to it now you the at platforms say it is the flows. about your to we past a billion any you on XX much for around way go of the been, XXXX. and is quarter structural tracking this gross a unperformance would your If and level, retail us I for just is guess or back can XX prove

Jim Cracchiolo

it's of Suneet factors. combination think, a I

all, performance, been think as I for but And definitely we've consistent. back I have now, it's and well. - bounced - very investment nicely some we had been, has think of strong that it's first we've some were underperforming,

So very a we across good have range, performance. larger

of So necessary. I know, here is given part think, performance a of you investment what's

getting established the of job the that great relationships et more a has done on and various a platforms, cetera. distribution, broadening really think due the I better the team and diligence

the making I think of an we that have said, been I and certain sense, range as in categories. considered than well, range wider in a are that are income products wide past, that particularly like categories have

it's So of starting hard I results. we worked over that years show some to last that factors is a combination at of good think number the

we've investments made the You and to know, productivity and business. lot get same asset AWM the both business a management flows of thing continue to in the in

continue, You our whole completed attribution platform. actually know, we we trading and

remember through I go to and whole targeting ability establishing funds globally And Europe Brexit. opportunities. Threadneedle, be to a distribution nice lineup the signs might there open showed us share Brexit, that it we're a European lot closed, flows a to change would that of the weak, where more also there think to bounce being with that economy back, some know, for good a we help. to this people, had research there of understand actually quarter. know that the Columbia investment the into a we bit our in still in to Europe, that improve actually of moving sort analytics, has ability improved to lineup get completion people we've see know, UK data You took And our out you still a if that strong established, you that saw really Brexit but last sort while. we some little of, of because got can with another market now of informed -

So point us feeling to just one, said, combination as I but we that's of what it's a you good factors, gives move as a think forward. wouldn't I

Suneet Kamath

year-over-year, to we you at if that about that's up that the based moving have I'm bank. the XXX look in And million then assuming I capital guess, AWM, in on segment, you putting you're the know, capital

off question you the think and capital, the And use So would the sort to how growth? about willing how to could growing in do that of, you is, for other bank trade support put terms bank. much of that, in then you purposes, the be capital

Jim Cracchiolo

there, as I’ll I or which Walter derive - nicely spread good we we book get over quarter, and continue compliment but complete. of in half to growing us. to picked to the growth books that it from a growth loan like, fourth various for like the can the activity product start, our greater was be - is assets back. in took would let pledge mean, bank returns will we feel a good as I margin is up, So And good being

add very to required comfortable continuing So there. we capital as feel

upper As overall XXs. mid the all in up you returns the see, total are to can firm for

it's So and generate our that, what though not strong. with cash issue. is as we even have flow return still, we would And a

gives could good for return look continue to still or we capital us organic it a So that acquisition.

But, think that if So us. comment. have is for to something to Walter, issue going pressing don't be I a you

Walter Berman

The No. it our comfortable to we only is that additional look in have and talking obviously, off feel return balance allocated capital was I'll good, to thing that, where, certainly at add the is, we about for growth the when plan sheet. Jim relative that

comfortable we then And feel So equation. return that. - maintain with risk to that

capital capital do we allocated yes, it, we have that. to the So, to have more and

Jim Cracchiolo

annuities, capital will we areas And can some lighten sale where up whether fixed some and of free the of books. as also having even of transaction the see, do the a evaluate there, that or you Suneet, fixed we’re of

Operator

Sachs. next from Blostein Alex Our Goldman from comes question

Alex Blostein

little at versus talk for the focus distribution, whole? sort comping big channels? how the profitability New by it sort distribution? a asset quarters party mix all, is is business that's which way, how management if profitability that of continuing it's around Year, that those like platforms. some of for get flows retail that it a now? in coming as does from shift, I does about incremental you feels sort third-party other And coming the if And improvement, third the great. the the much occurs, But that from into AWM incremental around impact kind A a through sort to bigger - third-party of the been that's distribution impact guys follow-ups bigger know improvement couple are Could of bit several meaningful words, well. in seen we've as AMP of So like in you that net much as of wide flows that

Jim Cracchiolo

a say, sure the I I pickup nice question. the part, would the for a would channels But to say, it I'm in across bit. picked is up understand what actually what a seen Ameriprise. third-party first Ameriprise seeing would that we're of different But major I as through we just So, pickup not complement have. no the first - I would we've distributors I - second part the than

the it. the performance, The products the the on in the put a and does mean, have same cetera. fees regard, that same. sale I And same et positive us the combination the regard pay external so, were mean, market that we been of it, the the of to are From both economics because what to and that is into sale cetera. between internal et on

continue good for So is I I'm in to not return sure difference will overall, you as there be that good the us. think a material flows, But, get way.

Alex Blostein

M&A, bit difference, If part? a - what you've gave that color. little it to when you I comes second guess like can little skip of then no material a given

were capabilities So kind of M&A of it big at over you like, looking deals deals for on the if management capability alone. sounds purposes do asset something side, to over you're scale type

of you particular rest to find complement your in better guys still So, platform? capabilities what the are that compelling, the

Jim Cracchiolo

our So have we business, at a I we good business, as look we at look would say, line-up. Alex, our

We have scale.

we the could fixed in want we a It's as say, everything global solutions have today. would have We all equities platform in or however, of world. I or parts though, not

well So think I manage more necessary. that of today, of we do sort we from type as evaluate looking the of of what the as platforms core that of sort at individually are

business. in that our estate more growing and a some bit solutions we're real like things over time. We're So adding some alternatives,

and capabilities adding we to it's to how that well methods their perspective. as from scale. clients, things manage and assets So a not against all product add more other of like as for We're other distribution

the very clear to that. have a would things put a we on about But be be me it of transaction where it us platform. rather than just complement assets gives Let to want

Alex Blostein

All a wide It I sounds thing, range pretty like guess.

T&E about growth G&A, could grow rate maybe if in not what bit little billion Just a think for - number? a was is while billion on a comes question $X.X that, quick It an but level, if people and G&A, XXXX. a like at follow-up early about sounds think reasonable back I ask like Walter, a for there XXXX about that you firm-wide things that I like know to for of AWM, $X.X

Walter Berman

environment, that's at as again, couple reasonable points that. to I said, looking evaluate I our strategy we're range we're should managing basis a that on the a of couple but points. expenses to the points well, will the for that cent of we a on with look so that like a you of look and our would sticking couple we're time but at say programs, And at we That's it. reinsurance range, same looking percent investment As,

Operator

Krueger Ryan comes Next from from KBW. Our question

Ryan Krueger

further bank the for growth move sweep just quick I opportunity about there? a expectations year? next over to talk a little assets had one. bit the the And more Could you your in

Jim Cracchiolo

let Walter. and begin I'll Yes.

see sweep further So bank. to the into an we some our both continue, activities of movement said, of for as opportunity we the

from of $X saw the the $X billion course last roughly bank we billion. you to moved up year, over As

year. add maybe of gradually we product up products, to product. in next to continuing we trying shift products the so some add picked We the started here Year. latter the pledged year, We're We the also like the book. the So in mortgage other more that more XXXX see New to bank. deposit deposit on the the part into capability, into We'll to launched start loan look

the quarterly that bank looking forward. So basis to on different into that as opportunity things move we're continue we the shift we'll like gradual a feel there more are at. But bit a we

Ryan Krueger

you. Thank

Jim Cracchiolo

Walter, add to anything? do you want

Walter Berman

No, no.

question, I wealth that sheet grow your part certainly in capacity the balance the think filed other we our the banks plans and of to have to said what to capital. of the we accommodate, just the Jim to

So we with have certain position that.

Operator

question from Erik comes Research. Bass last Autonomous Our from

Erik Bass

and some holistic Can the you you paint the are compares of help more growth, client other wrap organic total your see point help client to net that net growth and business, to can peers? there this can organic But how us in think we new about metrics AWM view of overall a flows obviously flows in the to AUM?

Jim Cracchiolo

production up in, you. business actually The has us. the we client that continue that in the in bringing client I to and move Yes. I The the particular, up more and both channel, quarters to category. we targeted That and and up. and about, base, up nicely continue would I both to that overall has for channel scale is good organic along strong five picked flows you and add mean, the the could quarter, in pick probably in to growth as the five clients also to been and trend in the but want particularly picked line be what in as to we current to years the nicely call nice into spoke through Nicely, the further years for we year. client say acquisition and employee as independent that continues bringing we went they're continues said that we're the the from base, fourth

combination So, factors. it's a of

on concentrate they We that can advisers can do helps more deploy continue focus what the to we client get their and engagement more efficient technology on on based deepen. actually to more

advice formula Our working is well. really

than can goals their progress what majority and now they strategies. track of of our online executing We see doing and and more the of clients they're have XX% visibly with have that very

core we all base. really things, those So the feel of of strengthen underlying the

dealing advisers the have a little advice more client with the comfortable with deepening we engagement remember, and with clients, so around we our those And base further feeling with have, now they add with more open, get this will environment new and as improves, the clients us. that and environment out pandemic or the I go clients with be can in positive think, the a and for

that. what particular. it pretty warehouses I I So, were the can't our think against strong at of reported, a judge number - I an basis. if competitors et put a always you're cetera, look have through If because to know against standing on I have comparative increase acquisitions, going have we're that end competitors I course, of that at added of any look what's acquired from see on and

we're So I very doing a organically But can't core necessarily feel and separate well. them. business, from I

Erik Bass

on Thank you, impact to haven't question of or and just are make for potential given appreciate one facility thinking a ability a related be enter quarter. And year. pandemic results guess care. may to reinsurance your Obviously, the people it? wanting come How people claim, not IBNR, potential the this performance that that any to for you I long-term eligible have good that. books about in last but have over the because the then, And the their I homes? execute into transaction that, improvement Does for to

Jim Cracchiolo

Yes. that closely so. Walter, you've been on working

Walter Berman

Okay.

both, people care. unfortunately, into - you as long-term termination saw this improvements we we year, entering facilities So and less saw

in it's any like seeing, place, we're book, the increased very we and we built not about that And risk protected But into we're the on we're and have situation. premium good unlocking that and risk things with we've We - that shifts of both not claims monitoring and our assumptions, benefit put seeing. are programs feel the the and again, situation.

Erik Bass

terms of to on of really kind appetite for ability something... execute And change - so either in the no reinsurance or

Jim Cracchiolo

the continue very We of we'll see. But certainly, profile seen interest it. good to we feel the evaluate. just some we've some see interest about and in that We position risk

Walter Berman

see we or regard. that I in think is what's as but to continue behavior happening we book, our also evaluate what as both client in happening

it I in if is profile risk understand what I more they up marketplace go continues forward. we does as be people And or some opportunities what anything, to look the and as as might think interested thoughts the possibly additional open better in, that favorable. think

continue plays evaluation I to think that and will other as open how go maybe provide to out So that and along. through, and very we we're see opportunities

Operator

at concludes We for further have today's this questions conference. Thank Ladies Thank this and gentlemen, time. participating. you. no you

disconnect. may You now

Ameriprise Financial (AMP) 28 Jan 212020 Q4 Earnings call transcript