AMERIPRISE FINANCIAL, INC. Ameriprise Financial
January 2024
Forward-looking statements
The forward-looking statements in this presentation reflect management's expectations about future events, plans and performance. These forward-looking statements and the many assumptions upon which they are based involve risks and uncertainties. A list of factors that could cause actual results to be materially different from those expressed or implied by any of these forward-looking statements is detailed under the headings "Forward-Looking Statements" and "Risk Factors", and elsewhere, in our Annual Report on Form 10-K for the year ended December 31, 2022, and elsewhere in our Quarterly Report on Form 10-Q for the quarter ended December 31, 2023. These forward-looking statements speak only as of today's date and we undertake no obligation to update publicly or revise them for any reason. For information about Ameriprise Financial, please refer to ir.ameriprise.com.
Non-GAAP Financial Measures
This presentation contains certain non-GAAP financial measures that our management feels best reflect the underlying performance of our operations. Reconciliations of such non-GAAP financial measures to the most directly comparable GAAP financial measure have been provided along with the presentation.
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A diversified and differentiated
financial services leader
with a record of outperformance -
well-positioned to capture future growth
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Ameriprise - diversified and fully integrated
Advice & Wealth
Management
Industry-leading | ||||
Strong investment | wealth manager with | Important solutions | ||
differentiated advice | ||||
performance; | value proposition | meeting clients' | ||
client-focused approach | evolving needs |
$1.4T | Quintupled EPS | ~90% ongoing | ~$21B returned | $1.5B | 49.7% adjusted |
in AUM/A | since 20131 | free cash flow | to shareholders | excess capital | operating ROE, |
generation | since 2013 | ex. AOCI1 |
Data as of 12-31-23. | 4 |
1. Excludes Unlocking. Results beginning in Q1 2021 have been recast to reflect adoption of long duration targeted investments (LDTI). |
One dynamic firm delivering significant value
Wealth | Global Asset |
Management | Management |
Columbia
Threadneedle
Investments
Advice
& Wealth
Management
Retirement &
Protection
Solutions
Benefits
Wealth management1 drives ~85% of the firm's revenue
Deep, long-term client relationships
Captures assets and fees across market cycles
Strong asset persistency
Leverage critical expertise and capabilities across all segments of AMP
Substantial free cash flow to reinvest for growth and return to shareholders
1. Represents AWM's advisor network given the linkages in our integrated model.
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Continued progress in shifting our business mix given growth in Wealth Management
Pretax Adjusted Operating Earnings1
18%
41%
2013 | 27% | 2023 |
$2.2B | $4.4B 17% |
65%
32%
Advice & Wealth Management | Asset Management | Retirement & Protection Solutions | ||
1. Excludes Corporate & Other segment and unlocking. Results beginning in Q1 2021 have been recast to reflect adoption of long duration targeted investments (LDTI). 2012 includes SOP market impact and has not been recast for LDTI.
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Advice & Wealth Management is delivering sustained profitable growth
A longstanding leader in financial planning and advice
Excellent client satisfaction
10,367
financial advisors
$916K trailing 12-month adjusted operating net revenue per advisor
Significant and sustainable benefit from Ameriprise Bank, FSB
Strong branded value proposition
Over 80% fee- based revenue
$901B in client assets, incl. $488B in wrap assets
Respected brand with deep client relationships
Data as of 12-31-23.
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Recognized for our premium client experience and for managing our business responsibly
Ameriprise recognized as
#1 among wealth
managers in Kiplinger Readers' Choice Awards 2023
Ameriprise has been recognized by J.D. Power for providing "an outstanding customer service experience" for phone support for advisors for five consecutive years.
Ameriprise earned a 2023 | Recognized among the | |
Hearts & Wallets Top | best-managed companies | |
PerformerTM recognition | of 2023 on The Wall | |
in "Understands me and | Street Journal | |
shares my values" | Management Top 250 list | |
of clients say their advisor
96% provided advice that addressed their needs
Clients rate Ameriprise
4.9 out of 5
in overall satisfaction
See source information in appendix.
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Attractive and fast-growing market
Households1 | Investable assets1 | Investable assets2 | |||||||||
(in millions) | ($ in trillions) | CAGR 2016 - 2022 | |||||||||
$20M+ | 0.3 | $14 | +10.1% | ||||||||
$10-$19.9M | 0.5 | $7 | +3.7% | ||||||||
$5M-$9.9M | 1.6 | $11 | +10.6% | ||||||||
$500k - $4.9M | 19.6 | $28 | +8.0% | ||||||||
$100k - $499K | 27.1 | $6 | +4.5% | ||||||||
<$100K | 83.1 | $2 | +4.1% | ||||||||
- US Federal Reserve, Distributional Financial Accounts, 3Q 2023
- US Federal Reserve, Survey of Consumer Finances, 2016-2022
U.S. household
investable assets
projected to grow at an ~8%
compounded annual growth rate, going forward
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Within the opportunity, we are focused on the Responsible Mindset
Who they are
Our primary target market:
$500K-$5M
$20.2 trillion in financial assets
Attractive growth trajectory
76% own retail and retirement assets
45% under age 45
What they want
Advice and anytime access
63% prefer | Want advice | Strong digital |
comprehensive | beyond | expectations and |
advice | investments | engagement |
A personal relationship
Want to work with | 78% consider it | Regular, proactive |
a firm and advisor | very important to have | and personalized |
they trust | advisors they can | contact is in top 5 |
work with face-to-face | most important |
Source: Ameriprise Financial Market Segmentation, 2021.
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Disclaimer
Ameriprise Financial Inc. published this content on 21 February 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2024 08:59:03 UTC.
