Celebrating 130 years of putting clients first
DEAR FELLOW SHAREHOLDERS,
JAMES M. CRACCHIOLO
CHAIRMAN AND
CHIEF EXECUTIVE OFFICER
In 2024, Ameriprise Financial recognized a significant milestone few U.S. companies have reached — our 130th anniversary. We stand tall on our legacy as a differentiated financial services leader with a longstanding record of outperformance.
As we’ve grown, we’ve consistently delivered strong results and generated meaningful shareholder value. This continued in 2024, when we again posted record business and financial results and outperformed peer indices.
At Ameriprise, we serve more than 3.5 million individual, institutional and small business clients who entrust us to manage, administer and advise $1.5 trillion in assets. Our long-term client relationships are reinforced by our personalized advice, informed perspective and high-performing solutions. And our stakeholders benefit from the firm’s stewardship, financial strength and proven ability to navigate market cycles.
We have earned a powerful reputation for serving clients exceptionally well while managing the firm in alignment with our values-based culture. Our company is truly unique in a competitive financial services marketplace.
In the pages that follow, I’ll highlight our strong results in 2024 and share my perspective on how we are positioned to continue our progress.
Served clients and grew in a dynamic operating environment
The operating environment continued to evolve in 2024, and Ameriprise navigated it well. After a period of higher interest rates, the U.S. Federal Reserve began lowering rates for the first time since 2020 as inflation moderated. While the geopolitical backdrop resulted in periodic spikes in volatility, equity markets ended the year up significantly, with strong growth in the fourth quarter after the U.S. presidential election.
Delivered record financial results, including 19% EPS growth
In 2024, Ameriprise again set new highs for revenue, earnings and EPS with continued industry-leading return on equity. On an adjusted operating basis, excluding unlocking:
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Revenues grew by 11% to $17.1 billion from strong Ameriprise client net inflows, increased client activity and market appreciation.
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Earnings rose sharply, up 13% to $3.6 billion, reflecting our robust business results and expense discipline.
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Earnings per diluted share also increased significantly, up 19% to $35.07.
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And return on equity was excellent at 52.7%, compared to 49.7% a year ago.
This strong growth in financial metrics reflects the consistency of our management approach as we continually invest in the business to innovate and best serve client needs while generating shareholder value.
We also further focused on driving operational efficiencies to maximize our global capabilities and redirect resources to growth initiatives. This not only helped us to deliver a firm-wide operating margin of 26.5%, but it also positions us well going forward.
Importantly, we have consistently delivered this level of strong financial performance with greater stability of earnings than our peer group.
Built a powerful business supported by a talented and dedicated team
From a shareholder perspective, our diversified business drives greater asset persistency and benefits from multiple revenue streams. And we have demonstrated that our mix of businesses creates the opportunity for a valuation premium.
Our complementary wealth and asset management businesses with our global capabilities enable us to fully serve clients’ needs and to consistently deliver strong results for all stakeholders.
Generated shareholder value and outperformed peers
The total shareholder return of Ameriprise Financial common stock in 2024 reached a new all-time high. We ended the year up 42% to $532, driven by our consistently strong results and market positioning. In fact, Ameriprise stock has outperformed the S&P 500 Financials Index over the short term — and as importantly — the long term, where Ameriprise has been the best performing stock for total shareholder return in the S&P 500 Financials Index since our spin-off in 2005.
A LEADING WEALTH MANAGER — GROWTH DRIVER OF AMERIPRISE
Our organization strives to deliver an exceptional client experience built on trust and sophisticated financial solutions supported by leading technology.
Ameriprise consistently earns important industry recognition for both the experience we offer and how we manage the business, including the following accolades:
- For six consecutive years, J.D. Power has recognized Ameriprise for providing “an outstanding customer service experience” for phone support for advisors. In 2024, this prestigious recognition also extended to phone support for clients.
- Clients consistently rate their experience with Ameriprise as 4.9 out of five. We are exceptionally proud to earn this high satisfaction.
- In 2024, Ameriprise earned the Hearts & Wallets Top PerformerTM recognition for “Understands me and shares my values.”
Further strengthened Wealth Management as the core growth driver of Ameriprise
We go to market with a powerful, personal client experience built on trusted relationships and advice underscored by world-class service and technology. Our advisors and employees are committed to delivering that experience consistently to help clients feel confident about reaching their financial goals. This is our mission, and in 2024, clients again rated their satisfaction with Ameriprise an exceptional 4.9 out of 5.
We continue to invest across the business and within our technology ecosystem as we integrate and evolve our capabilities. We’re executing to drive strong client and advisor engagement while simplifying processes to support business growth. And we’re honored that J.D. Power recognized Ameriprise for delivering differentiated service to clients and advisors.
Our high level of client and advisor service resulted in continued strong client-advisor engagement, asset growth and client flows.
Total Ameriprise client assets passed the $1 trillion mark, increasing 14% to a new high, benefiting from client net inflows and market appreciation. Our investment advisory business is our primary growth driver within Wealth Management, and it grew to $574 billion, making it one of the largest in the industry.
Client flows were strong, increasing throughout the year. Total client flows reached $35 billion, with wrap flows up 37% to $33 billion.
Ameriprise Bank is also an important component of our Wealth Management business. We ended the year with Bank assets of more than $23 billion and saw good growth across our suite of lending products, including our pledge business. In addition to broadening our product capabilities, the Bank provides stable interest earnings given the Fed may further reduce interest rates in 2025. And we see additional opportunity to expand our product set with CDs, HELOCs and checking accounts.
Our more than 10,000 financial advisors are key to delivering our client experience
We’ve invested significantly in our advisor platforms. They benefit from an extensive and integrated set of tools, capabilities and support to efficiently serve clients, attract new clients and grow their practices.
Technology plays an important role in driving growth, and our systems include our powerful client relationship management (CRM) tools, client meeting capabilities, digital experience, and data-driven analytics and AI tools. In 2024, our teams in Technology delivered thousands of tech releases with essentially no disruptions, providing important new capabilities and further enhancing data privacy, security and efficiencies.
And while technology has grown in importance, we’ve consistently invested in the skills and capabilities of our field leadership team and related training to help bring our value proposition to life.
We believe our advisors are the best in the business. They care deeply for clients and are consistently increasing their productivity. In fact, advisor productivity hit another new high at more than $1 million in adjusted operating net revenue per advisor. And advisor satisfaction and retention of our most productive advisors remains strong.
“Our advisors benefit from an extensive and integrated set of tools, capabilities and support to efficiently serve clients, attract new clients and grow their practices.”
In addition, experienced advisors continue to move their practices to Ameriprise because they value our strong branded proposition, leading technology and support, and bedrock financial foundation. The recruiting space is competitive, and in 2024 we had good results overall. We saw a nice pick-up in the second half of the year and our pipeline remains strong.
From a financial perspective, Advice and Wealth Management has grown to drive approximately 65% of our earnings. For 2024, segment revenue increased 14% from a year ago with earnings up 13%, and we delivered an excellent margin of 30%. These are terrific results, which we will continue to build upon.
9 out of 10 advisors who joined us recently say they have:
- better financial planning capabilities
- support for deeper client relationships through financial planning and advice
- the ability to run their practices in a way that aligns with their values more than they did at their prior firms
1Adjusted operating net revenue per advisor.
See source information
Clients are highly satisfied with the Ameriprise advice experience:
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97% say they feel their advisor cares about their ability to achieve goals
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96% say their advisor provided advice that addressed their needs
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96% say they were highly satisfied with the outcome of the experience with their advisor
Complementary businesses provide critical solutions and strengthen client relationships
Within Retirement and Protection Solutions, we’ve built high-quality books of business over many years and have prioritized products that help our clients grow and protect their wealth while meeting our financial requirements.
We offer our RiverSource® annuity and insurance products through Ameriprise advisors. And our focus on supporting the Ameriprise client experience drives RiverSource priorities, investment and effective risk management. This includes investments in advanced analytics and tools, including our accelerated underwriting program and product enhancements.
"Our focus on supporting the Ameriprise client experience drives RiverSource priorities, investment and effective risk management."
In 2024, sales of variable annuities increased 26% and variable universal life insurance sales increased 22%, reflecting strong growth in our Wealth Management business.
From a financial perspective, Retirement and Protection Solutions delivered consistent operating earnings, which were in line with our expectations and generated substantial free cash flow for Ameriprise.
RiverSource annuities and insurance provide important solutions for protection, growth and income.
Asset Management — successfully adapting to industry trends
Ameriprise is a top 25 global asset manager with Columbia Threadneedle Investments (Columbia Threadneedle) as our global asset management group. Columbia Threadneedle is an active manager with a deep commitment to research that offers individual and institutional clients an extensive lineup across equities, fixed income, multi-asset and alternatives.
Our investment teams are generating strong investment performance for clients. In fact, at year end, nearly 70% of our funds were above median for 1- and 3-year timeframes. For 5- and 10-year performance, 80% of our funds outperformed. And the breadth of our offering is evident in our 108 four- and five-star Morningstar-rated funds globally.
Columbia Threadneedle ended the year with $681 billion in assets under management and advisement as we benefited from market appreciation and improvement in retail flows in both the U.S. and EMEA.
With regard to global retail, we’re focused on driving positive sales in our key strategies and continuing to expand the vehicles investors use to access them. Our U.S. mutual fund business is core, and we’re expanding our active ETF lineup, as well as separately managed accounts, including traditional and tax-efficient strategies.
We’ve also grown our model delivery business to be in the top seven in the U.S. In EMEA, we’re seeing improvement in both UK and European retail while we’ve completed a multi-year period of transformation that includes the integration of the BMO GAM EMEA acquisition.
In institutional, we’re deepening our relationships with key clients and strengthening our distribution in target markets, including APAC. That said, we experienced expected outflows in 2024 that included an asset transfer related to a legacy insurance partner. And while we announced the decision to exit our U.S. real estate business, we are investing to grow our alternative capabilities, including UK and European real estate, hedge funds and CLOs.
Our teams are focused on transforming the business to drive profitable growth. This includes streamlining the organization and increasingly accessing our global footprint. We’re working to improve processes and better utilize technology and intelligent automation to generate greater productivity and deliver expense savings to redeploy.
Ultimately, these efforts are generating strong financial results. Asset Management revenues increased 7%, earnings were up 28%, and adjusted operating margin was strong at 38%, which compares well to peers.
FINANCIAL STRENGTH AND CONSISTENCY
90%
free cash flow generation
- Strong enterprise risk management
- High-quality, AA-rated investment portfolio
- Effective hedging through volatile periods and market cycles
- Substantial excess capital and liquidity
Differentiated capital return
Capital return – dividends/repurchase
($ in billions)
Consistently generating a leading ROE
Return on equity
excluding AOCI and unlocking
Our capital management approach has generated shareholder value over the short and long term, including reducing our share count by 22% over the past five years while steadily increasing our dividend.
A powerful financial foundation helping to drive shareholder value
We continue to differentiate Ameriprise Financial through the strength of our balance sheet fundamentals, capital management and enterprise risk management. Our business generates significant free cash flow, which provides flexibility to make ongoing investments in the business while delivering a high return of capital to shareholders.
We’ve been able to consistently generate approximately 90% free cash flow across the business. And with that, we’ve returned approximately 80% or more of our earnings to shareholders annually.
In 2024, we returned $2.8 billion to shareholders through our ongoing share repurchase program and dividends, including raising our dividend another 10%, our 20th increase since becoming a public company in 2005. In fact, we’ve been able to reduce the Ameriprise share count by 22% over the past five years.
Our capital return strategy is critical to generating shareholder value, as are our efforts to ensure a strong financial foundation. We continue to maintain a strong excess capital position; high-quality, AA-rated investment portfolio; appropriate liquidity; and an effective hedging program.
Capital strength, generation and return are hallmarks of our management approach and ones we consistently strive to maintain.
Recognized for our talented team and client-centric, values-driven culture
Together, our talented team of 20,000+ people continue to build upon our 130-year legacy of doing what’s right for clients and keeping the company strong. Our people are highly engaged and work to uphold and protect the excellent reputation we earn.
At Ameriprise, we believe in the importance of giving back, helping to improve the lives of others and building strong communities. In addition to our consistent level of annual corporate donations, individual giving and gift matching, we increased funding to Feeding America and the Global FoodBanking Network in recognition of our anniversary. We also continue to give to organizations like the American Red Cross, including supporting those impacted by the hurricanes in the U.S., and housing-focused organizations in our key markets.
This includes supporting volunteerism, which is central to our culture. Our people consistently give their time and talents to volunteer service, including through our National Day of Service. 2024 was the 15th consecutive year for this event where Ameriprise employees, advisors and clients volunteer at hunger-relief organizations across the country to make a collective impact.
As we continue to grow, innovate and serve more clients, our Ameriprise values and caring culture are front and center. Going forward, we will continue to invest for growth and further strengthen our value proposition as a diversified financial services leader.
On behalf of all of us at Ameriprise Financial, thank you for your trust and confidence in our firm. We will do everything we can to continue to earn it.
Respectfully,
James M. Cracchiolo
Chairman and Chief Executive Officer
We’re honored that generations of clients have entrusted Ameriprise Financial with their futures since 1894. The strength of our commitment to clients is matched by the strength of our firm: a strong financial foundation, passionate stewardship of the business and a track record of standing behind clients through good times and bad.
1 2022 amounts have been restated to reflect the adoption of Long-Duration Targeted Improvements (LDTI).
1 Pretax adjusted operating adjustment.
2 Calculated using the statutory tax rate of 21%.
3 2022 amouts have been restated to reflect the adoption of Long-Duration Targeted Improvements (LDTI).
1 Adjustments reflect the trailing twelve months' sum of after-tax net realized investment gains/losses, net of deferred sales inducement costs (“DSIC”) and deferred acquisition costs (“DAC”) amortization, unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long-duration products, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; mean reversion related impacts; block transfer reinsurance transaction impacts; gain on disposal of business; the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments; integration/restructuring charges; and the impact of consolidating certain investment entities. After-tax is calculated using the statutory tax rate of 21%.
2 After-tax is calculated using the statutory tax rate of 21%.
3 Adjusted operating return on equity excluding accumulated other comprehensive income (AOCI) is calculated using the trailing twelve months of earnings excluding the after-tax net realized investment gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long-duration products, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; mean reversion related impacts; gain on the disposal of business; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration/restructuring charges; the impact of consolidating certain investment entities; and discontinued operations in the numerator, and Ameriprise Financial shareholders' equity excluding AOCI and the impact of consolidating investment entities using a five-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory tax rate of 21%.
4 2022 amounts have been restated to reflect the adoption of Long-Duration Targeted Improvements (LDTI).
Excludes Corporate & Other Segment.
1 2022 amounts have been restated to reflect the adoption of Long-Duration Targeted Improvements (LDTI).
PERFORMANCE GRAPH
The graphs below match Ameriprise Financial, Inc.’s cumulative total shareholder return on common stock with the cumulative total returns of the S&P 500 Index and the S&P 500 Financials Index for two time periods: five years and since Ameriprise Financial became an independent, public company in 2005. The graphs track the performance of a $100 investment in our common stock and in each index (with the reinvestment of all dividends) to Dec. 31, 2024.
Comparison of a five-year cumulative total return*
Ameriprise Financial, Inc., the S&P 500 Index and the S&P 500 Financials Index
Comparison of cumulative total return since becoming an independent, public company*
Ameriprise Financial, Inc., the S&P 500 Index and the S&P 500 Financials Index
*$100 invested on Dec. 31, 2019, and Oct. 1, 2005, in stock or index, including reinvestment of dividends.
Source: Bloomberg.
Fiscal year ending Dec. 31.
The Standard & Poor’s 500 Index (S&P 500® Index), an unmanaged index of common stocks, is frequently used as a general measure of market performance. The Index reflects reinvestment of all distributions and changes in market prices, but excludes brokerage commissions or other fees. The S&P 500 Financials Index measures the performance of financial components of the S&P 500 Index.
Past performance does not guarantee future results. It is not possible to invest directly in an index.
GENERAL INFORMATION
Executive Offices
Ameriprise Financial Center
901 Third Avenue South
Minneapolis, MN 55402
612.671.3131
One World Trade Center
285 Fulton Street
New York, NY 10007
Information Available to Shareholders
Copies of our company’s Annual Report on Form 10-K, proxy statement, press releases and other documents, as well as information on financial results and products and services, are available through the Ameriprise Financial website at ameriprise.com. Written copies of these materials are available without charge upon written request to the corporate secretary’s office.
Stock Exchange Listing
New York Stock Exchange
Symbol: AMP
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
45 South 7th Street, Suite #3400
Minneapolis, MN 55402
Transfer Agent
Broadridge Corporate Issuer Solutions, Inc.
P.O. Box 1342
Brentwood, NY 11717
Phone: 866.337.4999
International/Toll free: 303.974.3777
Email:
shareholder@broadridge.com
Website:
shareholder.broadridge.com/amp
Annual Meeting
The Board of Directors of Ameriprise Financial intends to hold the annual shareholders meeting on Wednesday, April 30, 2025, at 11 a.m. Central time. Information about the event will be provided to shareholders in the company’s 2025 proxy statement and will be accessible online at ir.ameriprise.com. A transcript of the meeting will be available upon written request to the corporate secretary’s office at a modest charge.
Shareholders
As of Feb. 7, 2025, there were 11,118 shareholders of record. Copies of the Ameriprise Financial Corporate Governance Guidelines, as well as the charters of the four committees of the Board of Directors and the Ameriprise Financial Global Code of Conduct, are available on the company’s website at ir.ameriprise.com. Our website and proxy also provide important information about how and when we grant share-based compensation such as stock options and restricted stock, including the schedule of grant dates for 2025. We provide a copy of our Long-Term Incentive Awards Policy on our website and explain our policy for the approval of grants on a date when the Compensation and Benefits Committee of the Board of Directors or our chairman and chief executive officer is aware of material, nonpublic information about our company or its securities. Copies of these materials are available without charge upon written request to the corporate secretary’s office.
We filed the Certifications of our chief executive officer and chief financial officer with the Securities and Exchange Commission pursuant to section 302 of the Sarbanes-Oxley Act of 2002 as exhibits 31.1 and 31.2, respectively, to our Annual Report on Form 10-K for the year ended Dec. 31, 2024.
Shareholder and Investor Inquiries
Written shareholder inquiries may be sent to:
Broadridge Corporate Issuer Solutions, Inc.
P.O. Box 1342
Brentwood, NY 11717
or to:
Corporate Secretary’s Office
901 Third Avenue South S13/1098
Minneapolis, MN 55474
Written inquiries from the investment community should be sent to:
Investor Relations
901 Third Avenue South N14/243
Minneapolis, MN 55474
Trademarks
The following service marks of Ameriprise Financial, Inc. and its affiliates appear in this report:
Ameriprise Financial®
Columbia Threadneedle Investments®
RiverSource®
All other trademarks are property of their respective owners, and their use does not constitute an endorsement of Ameriprise Financial, Inc., its affiliates or subsidiaries, or its or their products or services.
Executive Leadership Team
James M. Cracchiolo
Chairman and Chief Executive Officer
Walter S. Berman
Executive Vice President, Chief Financial Officer
Gerard Smyth
Executive Vice President and Global Chief Information Officer
Kelli Hunter Petruzillo
Executive Vice President, Human Resources
Heather J. Melloh
Executive Vice President and General Counsel
Deirdre D. McGraw
Executive Vice President, Marketing and Corporate Affairs
Joseph E. Sweeney
President, Advice & Wealth Management
Products and Service Delivery
William J. (Bill) Williams
Executive Vice President, Ameriprise Franchise Group
Patrick H. O’Connell
Executive Vice President, Ameriprise Advisor and Institutions Group
Gumer Alvero
President, Insurance & Annuities
William F. (Ted) Truscott
Chief Executive Officer, Global Asset Management
William Davies
Executive Vice President, Global Chief Investment Officer
David Logan
Head of EMEA and Global Business Operations,
Global Asset Management
Board of Directors
James M. Cracchiolo
Chairman and Chief Executive Officer
Ameriprise Financial, Inc.
Robert F. Sharpe, Jr.
Presiding Director
Former President, Commercial Foods,
and Chief Administrative Officer
ConAgra Foods, Inc.
Dianne Neal Blixt
Former Executive Vice President
and Chief Financial Officer
Reynolds American, Inc.
Glynis A. Bryan
Former Chief Financial Officer
Insight Enterprises, Inc.
Amy DiGeso
Former Executive Vice President
Global Human Resources
The Estée Lauder Companies Inc.
Armando Pimentel, Jr.
President and Chief Executive Officer
Florida Power & Light Company
Brian T. Shea
Former Vice Chairman and
Chief Executive Officer
Investment Services, BNY Mellon
W. Edward Walter III
Senior Advisor
Energy Impact Partners
Christopher J. Williams
Chairman
Siebert Williams Shank & Co., LLC