2019 Annual Report

125 years of putting clients first

2019 Ameriprise Financial Consolidated Highlights

(In millions, except per share amounts and as noted)

Adjusted Operating 1,2

2019

2018

20173

Net revenues

$12,710

$12,694

$11,993

Earnings

$2,190

$2,161

$1,549

Earnings per diluted share

$16.10

$14.63

$9.89

Return on equity excluding accumulated other comprehensive income, net of tax

38.3%

37.1%

26.0%

2019

2018

2017

Assets under management and administration (in billions)

$973

$823

$897

Weighted average common shares outstanding --- diluted

136.0

147.7

156.7

Cash dividends paid per common share

$3.81

$3.53

$3.24

Common stock shares repurchased

13.4

11.3

9.9

GAAP

2019

2018

2017

Net revenues

$12,967

$12,835

$12,132

Net income

$1,893

$2,098

$1,480

Earnings per diluted share

$13.92

$14.20

$9.44

Return on equity excluding accumulated other comprehensive income, net of tax

33.1%

36.0%

24.8%

Shareholders' equity

$5,729

$5,588

$5,995

Shareholders' equity excluding accumulated other comprehensive income, net of tax

$5,467

$5,879

$5,766

1 This Annual Report to Shareholders contains certain non-GAAP financial measures that management believes best reflect the underlying performance of our operations. Reconciliations of non-GAAP measures to the most directly comparable GAAP measure are in the index.

2 Results include the non-cash impact of unlocking, which reflects the company’s annual review of market-related inputs and model changes related to our living benefit valuation, insurance and annuity valuation assumptions relative to current experience and management expectations, and premium deficiency testing. To the extent that expectations change as a result of this review, the company updates its assumptions and models and the impact is reflected as part of annual unlocking.

3 Results include a one-time, primarily non-cash, negative estimated impact of $320 million in 2017, primarily related to a reduction in future tax benefits associated with the enactment of the Tax Cuts and Jobs Act.

James M. Cracchiolo

Chairman and Chief Executive Officer

Photo of James M. Cracchiolo - Chairman and Chief Executive Officer

Dear fellow shareholders,

At Ameriprise, we’ve built an outstanding firm that is one of the strongest in financial services today, and 2019 was a year of significant progress and record results.

We did what we set out to do while staying focused on our top priority — serving our clients. In 2019, we executed our strategy, accelerated investments that will help drive long-term growth and took additional action to generate shareholder value.

We also recognized a rare milestone for public companies — our 125th anniversary. We have established this long legacy by continually adapting to meet clients’ evolving needs and responding to ever-changing market dynamics while consistently adhering to the management principles that underpin our success.

James M. Cracchiolo

Chairman and Chief Executive Officer

Focused on growth

In looking back on 2019, I'd highlight the following:

  • We achieved a new high for assets under management and administration at $973 billion.
  • Ameriprise client assets reached a record $643 billion, reflecting growth in our core client base — those with more than $100,000 in investable assets — and excellent client acquisition for those with more than $500,000.
  • We generated strong client net inflows, including into our investment advisory business, and significantly improved flows in Asset Management.

In terms of our financial results on an adjusted operating basis:

  • Net revenues were $12.7 billion, reflecting the sale of our Auto & Home business in the fourth quarter.
  • Earnings per diluted share increased 10% to $16.10.
  • We delivered a 38.3% return on equity ex. AOCI, an increase of 120 basis points from a year ago — a return that is among the best in financial services.
  • In addition, we returned more than 110% of our adjusted operating earnings to shareholders through ongoing share repurchases and an 8% increase in our regular quarterly dividend, our 12th increase in 10 years.
Powerful diversified financial services firm with a record of outperformance

And we took important strategic actions, including completing the sale of Ameriprise Auto & Home Insurance and launching Ameriprise Bank, FSB, which position us favorably for future growth.

With these results, Ameriprise again stood out as a public company. The total return of Ameriprise Financial common stock increased 64% in 2019, double the total return of the S&P 500 Financials Index and the S&P 500 Index. This strong performance added to the outstanding long-term return of our stock. Ameriprise has earned the fourth-best return of the S&P 500 Financials Index since our debut in 2005.

The market and regulatory environment influence our industry, and they were largely positive in 2019. Equity markets increased significantly and volatility declined. However, we experienced headwinds from the decline in short-term interest rates. And, the stability of the U.S. regulatory environment was in stark contrast to the continued uncertainty of Brexit.

Ameriprise Financial common stock total shareholder return — 2019

Line chart of total shareholder return in 2019, comparing Ameriprise Financial common stock to the S-and-P 500 Index and the S-and-P 500 Financials Index. Past performance is no indication of future results.

Ameriprise Financial common stock total shareholder return — Sept. 2005*-2019

Line chart of total shareholder return, from September 2005 to year-end 2019, for the common stock of Ameriprise Financial compared to the S&P 500 Index and the S&P 500 Financials Index. Past performance is no indication of future results.
Ameriprise Blue

Ameriprise Financial, Inc.

Ameriprise Light Blue

S&P 500 Index

Ameriprise Dark Mint

S&P 500 Financials Index

*Ameriprise Financial became an independent, public company on September 30, 2005. See index definitions.

Source: Bloomberg. Past performance is no indication of future results.

Celebrating 125 years of putting clients first

“Over many generations, we have proudly helped create financial security and confidence for millions of clients — individuals, families and institutions.”

James M. Cracchiolo

Chairman and Chief Executive Officer

Graphical representation of the growth in assets under management and administration from the founding of the firm in 1894 to year-end 2019, at $973 billion

From our origins in 1894 when John Tappan founded Investors Syndicate to our debut as a public company in 2005 to today, Ameriprise has grown while always putting clients first. Learn more about our history on ameriprise.com.

Timeline shown is for illustrative purposes only.

Advice & Wealth Management — a powerful growth engine driving our diversified firm

More than two million clients rely on Ameriprise and our dedicated advisors for financial advice, making us one of the leading wealth managers in the country. At a time when the financial landscape is constantly shifting, people turn to us to help them achieve specific goals. Our clients value the care and personal service our advisors provide and the extensive suite of high-performing products and solutions we offer to meet their evolving cash, investment, protection and estate planning needs.

Advice & Wealth Management is both the largest and fastest-growing business of Ameriprise and our advisors generate approximately 85% of our firm-wide revenue. And, as we execute our growth plans, we are focused on serving more affluent investors — a growing market — particularly those with $500,000 to $5 million in investable assets. We have a strong foothold in this market, and it’s an important growth opportunity for us.

Our commitment to our clients and personal approach result in excellent client satisfaction and industry recognition. Ameriprise has been rated by Temkin as an industry leader, including:

  • #1 in trust
  • #1 in customer loyalty
  • #1 in customer service
  • #1 in customer forgiveness
Focused on growing further as a wealth management leader

This strong satisfaction extends to our advisors. Our advisor force is highly engaged and productive. In 2019, our advisors generated $664,000 in adjusted operating net revenue per advisor, a new record. Our advisors’ productivity growth is consistently among the best in the industry. In fact, our advisors are regularly recognized in respected publications for the quality and productivity of their practices. In 2019, our advisors were well represented in top advisor rankings in Barron’s, the Financial Times, Forbes and Working Mother.

We care about our advisors and how they work with clients and grow their practices. With our advisor value proposition, we surround them with extensive support that includes leading technology capabilities, dedicated field leadership and training, robust compliance, and local and national marketing programs.

This level of support is central to why Ameriprise is a top destination for advisors who value a branded client-advisor experience and want to grow.

Ameriprise retail client assets

$ in billions

Bar chart of growth in Ameriprise retail client assets. $447 billion in 2015; $479 billion in 2016; $560 billion in 2017; $539 billion in 2018; $643 billion in 2019.

Client assets In fee-based wrap accounts

$ in billions

Bar chart of growth in client assets in fee-based wrap accounts. $180 billion in 2015; $201 billion in 2016; $248 billion in 2017; $251 billion in 2018; $318 billion in 2019.

Adjusted operating net revenue per advisor

12-month basis
$ in thousands

Bar chart of growth of adjusted operating net revenue per advisor. $514,000 in 2015; $528,000 in 2016; $575,000 in 2017; $624,000 in 2018; $664,000 in 2019.

Ameriprise delivers an exceptional client experience

Every client can expect an experience that includes:

handshake icon

One-to-one financial advice based on client goals and needs

monitor with graph icon

Personalized recommendations for a diversified portfolio and solutions to help protect from uncertainty

calendar icon

Regular meetings to review client goals, progress and investments

mobile device icon

Anytime access to investments and digital tools to help stay on track

Tablet displaying Ameriprise client site found at ameriprise-dot-com

We consistently attract experienced and successful advisors who appreciate how we work with clients and our advice value proposition. In fact, more than 300 experienced, productive advisors moved their practices to Ameriprise in 2019, joining us from wirehouses, regional firms, independents, banks and insurance companies.

With strong client and advisor engagement and a positive market environment, Advice & Wealth Management delivered excellent results. Client assets grew 19%, revenue increased 7%, pretax adjusted operating earnings grew 9%, and we increased our pretax adjusted operating margin by 50 basis points to end the year at 22.9%.

Investing to deepen client relationships and capture future growth

We made significant investments in 2019 to further enhance our client and advisor experience and to fuel future growth. This included:

  • Further strengthening our award-winning client experience by adding new digital capabilities and working to ensure all clients receive a level of advice that’s right for them.
  • Expanding our wealth management capabilities with an integrated custom advisory relationship that makes it easier for advisors to work with clients to manage their wealth and achieve their goals.
  • Implementing a sophisticated customer relationship management platform.
  • Launching Ameriprise Bank, FSB to serve the retail banking needs of our clients. We transferred more than $3 billion in deposits back to Ameriprise, debuted a new line of Ameriprise Visa Signature® premium credit cards and are on track to launch more deposit and lending products in 2020.

I’m energized about what we’ve built in wealth management and our opportunity to deepen client-advisor relationships and serve more clients through our advice experience.

In 2019, we launched Ameriprise Bank, FSB to serve important client needs and capture a significant long-term growth opportunity.

Serving client needs for income and protection within a strong risk management framework

#7 VUL provider*

Life Insurance In force

$ in billions

Bar chart of the stability of life insurance in force. $196 billion in 2015; $196 billion in 2016; $196 billion in 2017; $195 billion in 2018; $195 billion in 2019

#9 VA provider*

Variable annuity account balances

$ in billions

Bar chart of the growth in variable annuity account balances. $74 billion in 2015; $75 billion in 2016; $80 billion in 2017; $72 billion in 2018; $80 billion in 2019

* Source: LIMRA, YTD sales through Sept. 30, 2019.

Generating retirement income for clients and protecting what matters most

Our extensive insurance and annuity capabilities are an important part of how we meet client needs through the Ameriprise Financial Confident Retirement® approach. At RiverSource, our insurance and annuity brand, we have established high-quality books of business that serve the long-term needs of Ameriprise clients while delivering appropriate returns to our shareholders.

In this extended period of low interest rates, the businesses continue to generate attractive returns and strong free cash flow within a well-controlled risk profile.

With $195 billion in life insurance in force and $88 billion in annuity AUM, we have the scale we want with good diversity of revenue. We continue to evolve the business and our product mix to ensure we can meet client needs and deliver for Ameriprise shareholders. To that end, in 2019, we made a number of strategic decisions to enhance the risk profile of our book and free up capital, which I discuss later in this letter. We are also developing new products, including structured annuities, to complement our strength in variable and fixed annuities and variable universal life insurance.

In 2019, J.D. Power ranked RiverSource #1 in customer satisfaction among annuity providers.

Importantly, we strive to deliver an industry-leading experience for our policyholders and advisors. I’m proud to share that our focus on the client was recognized by J.D. Power in 2019 when RiverSource was ranked #1 in the annuity industry for customer satisfaction.

For our insurance and annuity businesses, we delivered excellent service to our clients and advisors, streamlined the business and freed up capital to invest for long-term growth.

Our insurance and annuity capabilities are central to delivering the Ameriprise Financial Confident Retirement® approach.

Image of the Ameriprise Financial Confident Retirement Approach shown as a pyramid. Bottom tier: Covering essentials. Middle-bottom tier: Ensuring lifestyle. Middle-top tier: Preparing for the unexpected. Top tier: Leaving a legacy

The Confident Retirement® Approach

Columbia Threadneedle Investments, logo

A year of momentum in Asset Management

In 2019, assets under management and administration at Columbia Threadneedle Investments, the global asset management group of Ameriprise, increased 15% to $494 billion. We significantly improved our flow trajectory by more than $14 billion year-over-year.

We delivered solid results across our key regions and globally, with the U.S., our largest market, showing the greatest year-over-year improvement. And, at the same time, we strengthened our global institutional business and managed Brexit uncertainty effectively.

We are focused on maintaining this positive momentum by executing on our strategic priorities. These include deploying our broad investment capabilities and research to serve core client needs, accelerating traction in U.S. intermediary, expanding in Europe to complement U.S. and UK strength, and focusing on institutional, multi-asset and our solutions businesses.

As an active manager, we continually invest in our global research capability, including expanding our use of data and technology. This contributed to an excellent year of investment performance across equity, fixed income, multi-asset and asset allocation portfolios. More than 75% of our funds were above Lipper medians or benchmarks over 1-, 3- and 5-year periods.

Transforming our global asset management business to be a long-term winner

From a distribution perspective, our North America region represents more than 70% of the client assets Columbia Threadneedle manages. We have built a broad, high-performing product range and are expanding the product vehicles investors can use to access our investment strategies. We have important strategic partners and an excellent footprint. Investments in data analytics are helping us target advisors better and serve their needs more fully, which is resulting in Columbia Threadneedle earning higher market share at many of our top broker-dealer firms.

116 four-star and five-star Morningstar-rated funds globally
More than 75% of Columbia funds were above median for 1-, 3- and 5-year timeframes and over 80% of Threadneedle funds beat their benchmark for the same time periods.

Asset Management Assets Under Management

$ in billions

AUM by asset type

Pie chart of $494 billion of Asset Management Assets Under Management, showing different asset types as follows: Equity - 55%; Fixed income - 36%, Money market - 1%, Alternative - 1%, Hybrid and other - 7%

AUM by U.S./International

Pie chart of $494 billion of Asset Management Assets Under Management by region: U.S. - 72%; International - 28%

AUM by client type

Pie chart of $494 billion of Asset Management Assets Under Management, showing different client types as follows: Retail - 58%; Institutional - 33%, Owned assets - 8%, Alternative - 1%

Data as of Dec. 31, 2019. Investment performance represents asset-weighted results. See index for performance disclosures.

In the UK and Europe, we offer a full range of local and global investment strategies and are expanding our presence on the continent to complement our UK strength. Managing Brexit well has been a top priority. Importantly, the uncertainty became a catalyst to accelerate our established plans to grow in Europe. We transferred assets and launched a number of new funds and now have a full European cross-border product range on our Luxembourg platform. This was an important step as we focus on accelerating our growth plans in key markets, including Germany, Italy and Spain. While Brexit has pressured sales for the industry, we began to see improvement in the second half of the year into 2020.

Our institutional and solutions businesses are managed globally and represent significant long-term asset gathering opportunities. We have a broad portfolio of high-performing strategies and combine traditional institutional strategies with fully customized solutions. In the solutions business, customization is critical, and it is active managers like Columbia Threadneedle that understand client needs and deliver the right solution efficiently that we believe will be successful today and over the long-term.

As we look to build on our momentum in Asset Management, we’re focused on continuing to generate competitive profitability while transforming our business to be one of the long-term winners.

Taking action to accelerate our business mix shift and free up capital

Further enhancing our business model and capital position

We have built a diversified business and regularly review our insurance and annuity books to ensure excellent risk management. In 2019, we took strategic actions given favorable market conditions and the competitive environment:

  • Over the past several years, we have been strengthening Ameriprise Auto & Home Insurance — a non-core, direct, affinity business. With that work complete, we made the decision to sell the business to American Family Insurance, a firm that offered the right cultural fit for our 1,000+ employees and thousands of policyholders. With the completion of the sale in the fourth quarter, we received over $1 billion and freed up $700 million of capital, adding to our strong excess capital position.
  • Additionally, we reinsured about 20% of our fixed annuity block, freeing up $200 million in capital. And importantly, we’re well positioned to explore additional opportunities for the approximately $1 billion of capital that backs our remaining block.
  • Finally, in our long term care insurance book, we proactively addressed the market and competitive environment by implementing rate increases and offering benefit reduction options, as appropriate.

Strategic action:
Sale of Ameriprise Auto & Home Insurance to American Family Insurance

Benefits to Ameriprise

  • Ensured a smooth transition of the business and good fit for policyholders and employees
  • Received over $1 billion
  • Freed up $700 million of capital

A compelling diversified business with differentiated capital strength, flexibility and returns

Ameriprise generates substantial free cash flow that we reinvest in the business and return to you, our shareholders. In 2019, our strong performance and strategic actions increased our excess capital position to more than $2 billion, even as we returned $2.4 billion to shareholders through share repurchases and an 8% increase in our dividend. This level of return represented 110% of our 2019 adjusted operating earnings. Few in financial services can match this level of performance.

Our capital strength reflects the ongoing, strategic mix shift we are executing to have more of our earnings driven by our less capital-intensive, higher-multiple businesses: Advice & Wealth Management and Asset Management. In 2019, these businesses drove 74% of our pretax adjusted operating earnings, compared to 65% in 2016.

We have a rigorous process to identify, quantify and mitigate risk, which helps guide our decisions across the firm. As we’ve grown, we’ve continued to reinforce our strategic, proactive risk management approach, which has resulted in sustained strong balance sheet fundamentals throughout market cycles.

Looking forward, we feel very good about our ability to continue to generate substantial free cash flow, invest for growth and return capital to you, our shareholders. As the team and I execute our plans, we remain focused on sustaining the profitable growth and margins in our higher-multiple businesses and navigating evolving market and industry conditions with a rock-solid balance sheet.

Balance sheet strength and strong free cash flow generation

  • Excess capital
  • Strong ratings and risk management
  • High-quality investment portfolio
  • Ample liquidity

2019: Returned 110% of adjusted operating earnings to shareholders

Reduced diluted share count by 50% over the last 10 years

A strategic mix shift

Pretax adjusted operating earnings*

Ameriprise Blue

Advice & Wealth Management

Ameriprise Light Blue

Asset Management

Ameriprise Purple

Protection & Annuities

*Excludes Corporate & Other segment and unlocking

An image of two pie charts showing the strategic mix-shift at the company. The first pie chart is 2016 pre-tax adjusted operating earnings ($2.3 billion) showing the percentage contributed from the following business segments: Advice and Wealth Management - 39%; Asset Management - 26%; Protection and Annuities - 35%. The second pie chart shows the growth to $2.9 billion in 2019 distributed as follows: Advice and Wealth Management - 51%; Asset Management - 23%; Protection and Annuities - 26%

A values-based, trusted firm with 
leading engagement

Our values

Client focused

Integrity always

Excellence in all we do

Respect for individuals and for the communities in which we live and work

  • Excellent client and advisor satisfaction
  • An industry leader in employee engagement and leadership effectiveness
  • Experienced and long-tenured senior management team
  • Strong corporate governance and compliance
  • Trusted brands
  • Recognized as a Military-Friendly employer six consecutive years
  • Recognized by J.D. Power for providing "An Outstanding Customer Service Experience" for phone support
  • Added to FTSE4Good indices in 2019
  • Steadfast commitment to community:
    • Awarded 247 grants to nonprofits
    • Contributed nearly 100,000 volunteer hours and more than 68% corporate employee participation in the company's annual giving campaign

Our people are our strength; our values guide our actions

At Ameriprise, our dedicated and talented team is clearly focused on achieving our vision of becoming the most referred financial services brand. It starts with how we care for our clients and extends to how we support our advisors, help our employees grow in their careers and manage the business responsibly.

Our values guide our actions — client focus, integrity, excellence in all we do, and respect for individuals and the communities in which we live and work. The combination of our values, our client-centric culture and the progress we are making is reflected in our strong client and advisor satisfaction and our position as an industry leader in employee engagement. And it’s evident in the recognition we earn as a trusted financial services leader.

Our values are also demonstrated by our commitment to play an important role in creating strong, resilient communities. Through our grant-making, volunteerism and gift matching, Ameriprise supports a diverse group of more than 7,800 nonprofit organizations across the U.S., UK and other markets.

On behalf of all the people of Ameriprise — our 10,000+ employees, 10,000 advisors and my fellow members of the Ameriprise Financial Board of Directors — thank you for your trust and confidence in Ameriprise. We will do all we can to continue to earn it.

Kind regards,

Signature of James M. Cracchiolo

James M. Cracchiolo

Chairman and Chief Executive Officer

This report is not a solicitation for any of the products or services mentioned. Investment products are not FDIC or otherwise federally insured, are not deposits or obligations, or guaranteed by any financial institution, and involve investment risks, including possible loss of principal and fluctuation in value.

Past performance does not guarantee future results. Actual results may vary materially from our plans, estimates and beliefs. Please review carefully the discussion captioned “Forward-Looking Statements” contained in Part II, Item 7 in our Annual Report on Form 10-K for the year ended Dec. 31, 2019.

Morningstar: Past performance does not guarantee future results. Morningstar as of Dec. 31, 2019. Columbia funds are available for purchase by U.S. customers. Out of 104 Columbia funds (Inst. shares) rated, 17 received a 5-star Overall Rating and 39 received a 4-star Overall Rating. Out of 87 Threadneedle funds (highest rated share class) rated, 15 received a 5-star Overall Rating and 45 received a 4-star Overall Rating. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics. Not all funds are available in all jurisdictions, to all investors or through all firms. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ used to rank the fund against other funds in the same category. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly excess performance, without any adjustments for loads (front-end, deferred, or redemption fees), placing more emphasis on downward variations and rewarding consistent performance. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Morningstar Rating™ is for class Institutional shares only; other classes may have different performance characteristics and may have different ratings. © 2020 Morningstar. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

The following describes the principal subsidiaries that conduct the financial planning, asset accumulation and income, and protection businesses of Ameriprise Financial, Inc. Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC. Threadneedle International Limited is an FCA- and an SEC-registered investment adviser and an affiliate of Columbia Management Investment Advisers, LLC, based in the UK. RiverSource insurance and annuity products are issued by RiverSource Life Insurance Company and, in New York, by RiverSource Life Insurance Co. of New York, Albany, NY, and distributed by RiverSource Distributors, Inc. Auto and home insurance is underwritten by IDS Property Casualty Insurance Company, or in certain states, Ameriprise Insurance Company. Advisory services and products are made available through Ameriprise Financial Services, LLC (AFSL), a registered investment adviser.

Ameriprise Bank, FSB provides deposit, lending, and personal trust products and services to its customers, including clients of AFSL. Ameriprise Bank, FSB and AFSL are subsidiaries of Ameriprise Financial, Inc. AFSL financial advisors may receive compensation for selling bank products.

Ameriprise Bank, FSB. Member FDIC.

The Confident Retirement® approach is not a guarantee of future financial results.

Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.

Page 2: 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.

Page 4: Sources: #1 in customer loyalty: Ameriprise Financial placed first in the investment industry (20th across all industries) based on responses to a consumer survey as part of 2017 Temkin Loyalty Index (TLi), a loyalty benchmarking metric. 2017 is the most recent year in which Temkin produced the TLi and Temkin Group joined Qualtrics in 10/2018. See https://www.qualtrics.com/xm-institute/. The TLi is an average of five loyalty ratings: likelihood to repurchase, likelihood to try new things, likelihood to forgive, likelihood to trust. Answers to these questions are on a scale from 1 “very unlikely to 7 “extremely likely”. Rating is calculated as the percentage of 6s and 7s. The fifth loyalty rating is likelihood to recommend. Answers to this question are on a scale from 0 “very unlikely” to 10- “extremely likely. Rating is calculated as the percentage of 8s, 9s and 10s. For each company, Temkin determined the percentage of customers who considered themselves “very likely” to exhibit each of the five loyalty behaviors. TLi is calculated is calculated by averaging the percentage of those five behaviors.

#1 in customer service: Ameriprise Financial tied for first place in the investment industry (10th across all industries) based on responses to a consumer survey as part of 2017 Temkin Customer Service Ratings (TCSR), a critical customer interaction benchmarking metric. 2017 is the most recent year in which Temkin produced the TCSR and Temkin Group joined Qualtrics in 10/2018. See https://www.qualtrics.com/xm-institute/. The TCSR is based on consumer feedback of their recent interactions with companies. Consumers were asked “Thinking back to your most recent customer service interactions with these companies, how satisfied were you with the experience?” Responses are on a scale from 1=”very dissatisfied” to 7=”very satisfied.” TCSR is calculated by taking the percentage of consumers that gave a rating of 6 or 7 and subtracting the percentage that gave a rating of 1, 2, or 3.

#1 in consumer forgiveness: Ameriprise Financial placed first in the investment industry (38th across all industries) based on responses to a consumer survey as part of 2018 Temkin Forgiveness Ratings (TFR), a loyalty benchmarking metric. 2018 is the most recent year in which Temkin produced the TFR and Temkin Group joined Qualtrics in 10/2018. See https://www.qualtrics.com/xm-institute/. Every organization makes some mistakes, so an important area of loyalty is the willingness of customers to forgive them. The TFR is based on consumer feedback of their recent interactions with companies. Consumers are asked how likely they would be to forgive the companies if those firms made a mistake. Responses are on a scale from 1= “extremely unlikely” to 7= “extremely likely”. TFR is calculated by taking the percentage of consumers that gave a rating of 6 or 7 and subtracting the percentage that gave a rating of 1, 2, or 3.

#1 in trust: Ameriprise Financial tied for first place in the investment industry (22nd across all industries) based on responses to a consumer survey as part of 2018 Temkin Trust Ratings (TTR), a loyalty benchmarking metric. 2018 is the most recent year in which Temkin produced the TTR and Temkin Group joined Qualtrics in 10/2018. See https://www.qualtrics.com/xm-institute/. When companies have earned trust, their customers are willing to believe their claims and are more inclined to work with the company. The TTR is based on consumer feedback of their recent interactions with companies. Consumers are asked “To what degree do you TRUST that these companies will take care of your needs?” Responses are on a scale from 1= “do not trust at all” to 7= “completely trust.” TTR is calculated by taking the percentage of consumers that gave a rating of 6 or 7 and subtracting the percentage that gave a rating of 1, 2, or 3.

Productivity source: Company filings and S&P Cap IQ.

Page 6: RiverSource received the highest score among individual annuity providers in the J.D. Power 2019 U.S. Life Insurance Satisfaction Study of customers’ satisfaction with their annuity provider. Visit jdpower.com/awards.

Page 10: J.D. Power 2019 Certified Customer Service Program℠ recognition is based on successful completion of J.D. Power’s certification evaluation and exceeding a customer satisfaction benchmark through a survey of recent servicing interactions. For more information, visit jdpower.com/ccc.

Adjusted operating return on equity (in millions)

2019

2018

2017

Net income

$1,893

$2,098

$1,480

Less: Adjustments1

(297)

(63)

(69)

Adjusted operating earnings

$2,190

$2,161

$1,549

Total Ameriprise Financial, Inc. shareholders' equity

$5,837

$5,735

$6,212

Less: Accumulated other comprehensive income, net of tax

122

(98)

252

Total Ameriprise Financial, Inc. shareholders' equity excluding AOCI

5,715

5,833

5,960

Less: Equity impacts attributable to the consolidated investment entities

1

1

Adjusted operating equity

$5,714

$5,832

$5,960

Return on equity, excluding AOCI

33.1%

36.0%

24.8%

Adjusted operating return on equity, excluding AOCI2

38.3%

37.1%

26.0%

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 variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact on fixed index annuity benefits, net of hedges and the related DAC amortization; mean reversion related impacts;gain or loss on disposal of business that is not considered discontinued operations; the market impact of hedges to offset interest rate 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% for 2018 and 2019 and 35% for 2017.

2 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; market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact on fixed index annuity benefits, net of hedges and the related DAC amortization; mean reversion related impacts; gain or loss on disposal of business that is not considered discontinued operations; 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% for 2018 and 2019 and 35% for 2017.

Adjusted operating earnings per diluted share

(in millions, except per share amount)

2019

2018

2017

Net income

$1,893

$2,098

$1,480

Less: net income (loss) attributable to the CIEs

1

(1)

1

Add: Integration/restructuring charges1

17

19

5

Add: Market impact on variable annuity guaranteed benefits1

579

31

232

Add: Market impact on indexed universal life benefits1

12

17

(4)

Add: Market impact on fixed index annuity benefits1

(1)

Add: Mean reversion related impacts1

(57)

33

(83)

Add: Market impact of hedges on investments1

35

(11)

2

Less: Net realized investment losses (gains)1

(4)

9

44

Less: Gain on disposal of business1

213

Tax effect of adjustments2

(79)

(17)

(38)

Adjusted operating earnings3

$2,190

$2,161

$1,549

Per Diluted Share

Per Diluted Share

2019

2018

2017

Net income

$13.92

$14.20

$9.44

Less: net income (loss) attributable to the CIEs

0.01

(0.01)

Add: Integration/restructuring charges1

0.12

0.13

0.03

Add: Market impact on variable annuity guaranteed benefits1

4.26

0.21

1.48

Add: Market impact on indexed universal life benefits1

0.09

0.12

(0.02)

Add: Market impact on fixed index annuity benefits1

(0.01)

Add: Mean reversion related impacts1

(0.42)

0.22

(0.53)

Add: Market impact of hedges on investments1

0.26

(0.08)

0.01

Less: Net realized investment losses (gains)1

(0.03)

0.06

0.28

Less: Gain on disposal of business1

1.57

Tax effect of adjustments2

(0.58)

(0.11)

(0.24)

Adjusted operating earnings3

$16.10

$14.63

$9.89

Weighted average common shares outstanding:

2019

2018

2017

Basic

134.1

145.6

154.1

Diluted

136.0

147.7

156.7

1 Pretax adjusted operating adjustment.

2 Calculated using the statutory tax rate of 21% for 2018 and 2019 and 35% for 2017

3 Effective first quarter of 2019, management has excluded mean reversion related impacts from our adjusted operating measures. Prior periods have been updated to reflect this change.

Adjusted operating net revenues (in millions)

2019

2018

2017

Total net revenues

$12,967

$12,835

$12,132

Less: CIEs revenue

88

127

94

Less: Net realized investment gains (losses)

(6)

10

46

Less: Market impact on indexed universal life benefits

(7)

1

Less: Integration/restructuring changes

(3)

Less: Gain on Disposal of Business

213

Less: Market impact of hedges on investments

(35)

11

(2)

Adjusted operating total net revenues

$12,710

$12,694

$11,993

Mix Shift ($ in millions)

2016

2019

Advice & Wealth Management pretax adjusted operating earnings

$910

$1,509

Less: Unlocking

Pretax adjusted operating earnings excluding unlocking

$910

$1,509

Asset Management pretax adjusted operating earnings

$621

$661

Less: Unlocking

Pretax adjusted operating earnings excluding unlocking

$621

$661

Annuities and Protection pretax adjusted operating earnings

619

758

Less: Unlocking

(198)

(12)

Pretax adjusted operating earnings excluding unlocking

$817

$770

Percent pretax adjusted operating earnings from Advice & Wealth Management

42%

52%

Percent pretax adjusted operating earnings from Asset Management

29%

22%

Percent pretax adjusted operating earnings from Annuities and Protection

29%

26%

Percent pretax adjusted operating earnings from Advice & Wealth Management excluding unlocking

39%

51%

Percent pretax adjusted operating earnings from Asset Management excluding unlocking

26%

23%

Percent pretax adjusted operating earnings from Annuities and Protection excluding unlocking

35%

26%

Excludes Corporate & Other Segment.

Ameriprise Financial, Inc.
2019 Form 10-K

Download Full 2019 Annual Report

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, 2019.

Comparison of a five-year cumulative total return*

Ameriprise Financial, Inc., the S&P 500 Index and the S&P 500 Financials Index

Line chart with a comparison of a 5-year cumulative total return of Ameriprise Financial common stock compared to S&P 500 Index and S&P 500 Financials Index

Comparison of cumulative shareholder return since becoming an independent, public company*

Ameriprise Financial, Inc., the S&P 500 Index and the S&P 500 Financials Index

Line chart with a comparison of the cumulative total shareholder return from 2005, when Ameriprise Financial became a public company, to year-end 2019. The chart compares the total shareholder return of the common stock of Ameriprise Financial to the S&P 500 Index and the S&P 500 Financials Index
Ameriprise Blue

Ameriprise Financial, Inc.

Ameriprise Purple

S&P 500 Index

Ameriprise Light Blue

S&P 500 Financials Index

*$100 invested on Dec. 31, 2014 and Oct. 1, 2005 in stock or index, including reinvestment of dividends.

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.

Copyright © 2020 Standard & Poor's, a division of S&P Global. All rights reserved.

General Information

Executive Offices

Ameriprise Financial Center
707 2nd Avenue South
Minneapolis, MN 55474
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 2020 Annual Meeting of Shareholders of Ameriprise Financial will be held at our Minneapolis headquarters at 707 2nd Avenue South, Minneapolis, MN 55474, on Wednesday, April 29, 2020, at 11 a.m. Central time. A written or audio transcript of the meeting will be available upon written request to the corporate secretary’s office. There will be a modest charge to defray production and mailing costs.


Shareholders

As of Feb. 14, 2020, there were 12,995 shareholders of record. Copies of the Ameriprise Financial Corporate Governance Guidelines, as well as the charters of the four standing 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 also provides 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 2020. 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, 2019.

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
1098 Ameriprise Financial Center
Minneapolis, MN 55474

Written inquiries from the investment community should be sent to:
Investor Relations
243 Ameriprise Financial Center
Minneapolis, MN 55474


Trademarks

The following service marks of Ameriprise Financial, Inc. and its affiliates appear in this report:

Ameriprise Financial®

Ameriprise Visa Signature®

Confident Retirement®

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.

The paper copy of this report was printed using a printer recognized by the Printing Industry of Minnesota for its green initiatives and is certified as a Very Small Quantity Generator. The press used to print the report emits no volatile organic compounds.

FSC logo, Paper from responsible sources, FSC C007320

Executive Leadership Team



James M. Cracchiolo
Chairman and Chief Executive Officer


Walter S. Berman
Executive Vice President and Chief Financial Officer


Randy C. Kupper
Executive Vice President and Chief Information Officer


Kelli Hunter Petruzillo
Executive Vice President, Human Resources


Karen Wilson Thissen
Executive Vice President and General Counsel


Deirdre D. McGraw
Executive Vice President, Marketing and Corporate Affairs


John R. Woerner
President, Insurance & Annuities and Chief Strategy Officer


Joseph E. Sweeney
President, Advice & Wealth Management
Products and Service Delivery


Neal Maglaque
President, Advice & Wealth Management
Business Development and Chief Operating Officer


William J. (Bill) Williams
Executive Vice President, Ameriprise Franchise Group


Patrick H. O'Connell
Executive Vice President, Ameriprise Advisor and Institutions Group


William F. (Ted) Truscott
Chief Executive Officer, Global Asset Management


Colin Moore
Executive Vice President, Global Chief Investment Officer


Scott E. Couto
Executive Vice President, North America, Global Asset Management


Nick Ring
Chief Executive Officer, EMEA, Global Asset Management

Board of Directors



James M. Cracchiolo
Chairman and
Chief Executive Officer
Ameriprise Financial, Inc.


Dianne Neal Blixt
Former Executive Vice President and
Chief Financial Officer
Reynolds American, Inc.


Amy DiGeso
Former Executive Vice President
Global Human Resources
The Estée Lauder Companies Inc.


Lon R. Greenberg
Chairman Emeritus and
Former Chairman and
Chief Executive Officer
UGI Corporation


Jeffrey Noddle
Former Chairman
SUPERVALU INC.


Robert F. Sharpe, Jr.
Former President
Commercial Foods and
Chief Administrative Officer
ConAgra Foods, Inc.


Brian T. Shea
Former Vice Chairman and
Chief Executive Officer
Investment Services, BNY Mellon


W. Edward Walter
Global Chief Executive Officer and Director
Urban Land Institute


Christopher J. Williams
Chairman
Siebert Williams Shank & Co., LLC