Annual Report 2021
Annual Report 2021
(In millions, except per share amounts and as noted)
|Adjusted Operating 1,2||2021||2020||2019|
|Earnings per diluted share||$22.70||$14.08||$16.10|
|Return on equity excluding accumulated other comprehensive income, net of tax||50.6%||30.2%||38.3%|
|Adjusted Operating Before Annual Unlocking||2021||2020||2019|
|Earnings per diluted share||$22.75||$16.86||$16.22|
|Return on equity excluding accumulated other comprehensive income, net of tax||50.7%||36.1%||38.6%|
The schedule above is presented to provide insight into the effect of the company’s annual review of insurance and annuity valuation assumptions and model changes (unlocking) on certain non-GAAP financial measures. Given the non-cash nature of unlocking, management provides this additional detail to reflect the underlying performance of the business. See footnote 2 for more information about unlocking. 2019 includes results from the company’s Auto & Home Insurance business that was sold in the fourth quarter of 2019.
|Net income (earnings)||$2,760||$1,534||$1,893|
|Earnings per diluted share||$23.00||$12.20||$13.92|
|Return on equity excluding accumulated other comprehensive income, net of tax||51.2%||26.1%||33.1%|
|Assets under management and administration (in billions)||$1,418||$1,102||$973|
|Percent of Adjusted Operating Earnings Before Annual Unlocking from Wealth and Asset Management||80%||72%||75%|
|Weighted average common shares outstanding — diluted||120.0||125.7||136.0|
|Cash dividends paid per common share||$4.43||$4.09||$3.81|
|Common stock shares repurchased||7.1||8.4||13.4|
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 shown here.
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.
At Ameriprise, we care deeply about our clients and the personal relationships we build for the long term. The quality — and longevity — of our relationships have always defined us and are core to our success. In 2021, we extended this legacy and stood by our clients, as we have for many decades, helping them navigate the complexities of the environment and stay on course.
The strong relationships that form within our client experience are also reflected in our industry recognition. Proudly, we continued to be recognized for how we serve clients, including being ranked as the No. 1 Most Trusted Wealth Manager in the U.S.1 And that recognition extends to our service teams, who were recognized for the third consecutive year by J.D. Power for providing “An Outstanding Customer Service Experience” for phone support,2 as well as our investment teams, who won numerous awards in the U.S., Europe and Asia for their performance.
The market backdrop in the U.S. was quite positive in 2021 as the economy grew with the recovery. Equity markets were strong overall. And while interest rates remained at historic lows, inflation was higher than expected, driven by the dynamics of the pandemic.
As you can see on the chart on the following page, our financial results in 2021 were outstanding. Revenue increased 17%. Adjusted operating earnings were up 54%, with adjusted operating earnings per diluted share up 61%. And we were one of only a few financial services firms to generate a return on equity, excluding accumulated other comprehensive income, above 50%.
These are record results, and for additional perspective, our higher-multiple growth businesses delivered 80% of our 2021 adjusted operating earnings, ex-unlocking, up from 72% in 2020, continuing the trend that we’ve driven over many years. Not only did the business and profitability grow significantly, but the contribution from our growth businesses also increased substantially, complemented by our high-quality Retirement & Protection businesses in terms of earnings and free cash flow.
At Ameriprise, our balance sheet and capital management have always been defining strengths. Our investment portfolio is high quality, and we maintain substantial liquidity as well as an appropriate excess capital position. Our business generates consistent free cash flow, and in 2021, we took additional steps to free up capital to accelerate our strategy, support long-term growth and generate shareholder value. This included reinsuring the vast majority of our fixed annuity block and acquiring BMO Financial Group’s EMEA asset management business.
In fact, 2021 was the 11th consecutive year of returning approximately 90% or more of our adjusted operating earnings to shareholders — a clear differentiator for Ameriprise. We raised our dividend another 9%, our 17th increase since becoming public in 2005. If you consider our capital return over the last five years, we’ve reduced our average weighted diluted share count by 29%, a significant accomplishment.
Critically, we were able to provide this level of capital return while continuing to invest strongly in the business, make strategic acquisitions and maintain strong balance sheet fundamentals. While we’ve purposefully evolved over the years to meet the needs of a rapidly changing industry, our commitment to our mission has never wavered.
I’m proud of what we’ve accomplished on behalf of our clients and all our constituents over these many years, and again in 2021. I’m confident we’re well positioned to continue to deliver differentiated value.
I’ll now go into more detail about our businesses and our people, starting with Wealth Management, which performed exceptionally well.
|Revenue $ in millions||Earnings $ in millions||Earnings per diluted share||Return on equity|
excluding other comprehensive income
$1.4 trillion in assets under management and administration.
An all-time high and up 29% from 2020.
Clients were highly engaged with us in 2021, turning to Ameriprise and our advisors for comprehensive advice to keep them on track to achieve their goals. Key to our approach is how we tailor the experience to each individual and family and bring the full breadth of the firm to bear to serve our clients’ needs. This includes our broad range of high- performing products and solutions, as well as extensive digital capabilities to help ensure our clients feel connected, informed and confident about achieving their most important goals.
With the strategic investments we’ve made over many years and our expertise in planning, Ameriprise is delivering a truly differentiated and referable client experience. It has made us one of the leading wealth managers in the U.S., with client assets growing to $858 billion by year-end, a new high, with significant growth in clients with more than $500,000 in investable assets.
The strength of our advice value proposition contributed to our excellent client satisfaction, as well as our increase in activity and flows. Our Wealth Management clients contributed more than $41 billion of net inflows in 2021, with more than $40 billion into investment advisory accounts, further solidifying Ameriprise as one of the leaders in the industry. For context, this level of client flows is more than double just two years ago.
Consistent high level of client engagement and satisfaction3
Clients rate Ameriprise as4.9 out of 5
Our advisors are client focused, engaged, productive and growing their practices. At Ameriprise, we’re passionate about doing everything we can to help our advisors serve clients well, deepen relationships and stand out among their competitors. We provide them with extensive support, including a fully integrated system of technology capabilities, dedicated field leadership, training, coaching, compliance, and local and national marketing programs.
The full suite of resources we provide our advisors once again led to significant productivity growth, up 18% from a year ago to nearly $800,000 in adjusted operating net revenue per advisor, an all-time high.
We complemented this organic growth with targeted recruiting of experienced, productive advisors, welcoming another 325 advisors to Ameriprise in 2021. It was a dynamic year in recruiting as we returned to offering some in-person events while continuing our successful virtual programs. We’re consistently hearing great feedback from advisors considering Ameriprise. They’re impressed with our value proposition and everything we have in place to help them grow and serve their clients well. In fact, we recently surveyed hundreds of advisors who joined Ameriprise over the last few years. 90% said they have better client-facing technology and financial capabilities and are better able to serve and acquire clients at Ameriprise than with their prior firms. We’re honored to be a top destination for productive advisors who are attracted to our brand and value proposition.
We also continued to expand our banking capabilities through Ameriprise Bank, FSB, and provide additional retail banking services to our clients. Total assets grew substantially to $12.5 billion. We are building our bank as a key capability within Wealth Management and, in line with our plan, we moved additional deposits to the bank and adjusted our investment strategy for the rate environment. At the same time, we saw a nice pickup in demand for recently introduced lending solutions as we moved through the year, particularly our pledge loan product. It’s a good fit for our higher-net-worth clients looking for additional liquidity.
We feel good about the progress with the bank, and we’re well positioned to grow further, including as we enter a rising rate environment.
Through ongoing personalized financial advice and best- in-class digital tools, our clients stay connected to their advisor and easily track progress toward their goals.
I’m pleased to report that 2021 was another standout year for our global asset management business. Similar to Wealth Management, we stayed focused on our clients’ needs and delivered an excellent experience. At year-end, AUM increased substantially to $754 billion.
A key element of the transformation of our asset management business through the years has been the consistency of our strategy. We have steadily invested in the business, including across investments, operations, and our digital capabilities and data analytics. This has resulted in a powerful, global investment engine and significant progress deepening relationships with advisors and our distribution partner firms.
Investment performance has always been core to our business. We’re an active manager known for our research intensity and thoughtful perspective and insights. I’m pleased to report that our investment teams at Columbia Threadneedle Investments delivered excellent performance in 2021 — a less volatile year from a market perspective but still one with plenty of uncertainty. Our strong results carried across equity, fixed income and asset allocation strategies with more than 80% of Columbia and Threadneedle funds above median on an asset-weighted basis over 3-, 5- and 10-year time periods. And when we compare that to the broad group of U.S. peers we tracked, we performed at or near the top of the Lipper ratings for multiple time periods.
With this excellent performance and our acquisition of BMO Financial Group’s EMEA asset management business that I will discuss in more detail shortly, Asset Management generated total net inflows of nearly $43 billion in 2021. It was the second consecutive year of net inflows, which is a testament to the breadth of our offering and the progress we are making in meeting our distribution-partner needs and extending our market share in our key markets of North America; Europe, Middle East and Africa; and Asia Pacific.
Regarding distribution, we continued to gain traction in a very competitive marketplace, particularly in U.S. Intermediary. We had strong net inflows in global retail, reflecting the significant progress in the U.S. where 13 strategies generated more than $1 billion in sales in the year. And in EMEA retail, we experienced net outflows as conditions remained challenging given the pandemic and continued pressure from Brexit. However, flows improved over the course of the year, which bodes well for 2022.
In addition to our progress in retail, our institutional and solutions businesses continued gaining traction. We have a strong team across investments, sales, consultant relations and client service that deepened relationships with current clients, significantly expanded our number of consultant-rated strategies, and ultimately earned good mandate wins in each of our regions. We have built a strong institutional capability, and I feel good about both what we can provide to more investors and our sales growth pipeline.
In November, we successfully acquired BMO Financial Group’s EMEA asset management business, which expanded our presence in the institutional market and added key investment capabilities and solutions to meet growing client demand. From an asset perspective, we added $136 billion, essentially doubling our EMEA business to where it now represents approximately 40% of total Asset Management AUM. And we established a strategic relationship with BMO Wealth Management in North America that we will work to build upon.
We feel very good about our teams’ shared client focus. We are executing our plans well and effectively managing the integration. We’re energized by the capabilities we bring to market and focused on ensuring the transaction is seamless for our clients and our people.
As I consider our asset management business, we have built a Top 35 global asset manager with a reputation as a client-focused, research-based active manager. We are driving profitable growth as part of Ameriprise and growing our market share in a very competitive industry.
In our Retirement & Protection Solutions business, we made meaningful progress in this continued low interest rate environment. We’ve built a high-quality business over decades that serves the long-term needs of Ameriprise clients and generates solid earnings and significant free cash flow.
Our teams work closely with Wealth Management to help our advisors comprehensively serve clients, deepen relationships and grow their practices within our planning approach. We’ve enhanced our processes and overall experience for both policyholders and our advisors.
From a strategic perspective, we’re focused on freeing up capital and growing our non-guaranteed retirement and asset-accumulation protection products that deliver benefits for clients and our shareholders. In 2021, we reinsured the vast majority of our fixed annuity block, which generated significant excess capital that we used to largely fund the BMO EMEA acquisition. And in terms of sales, we had good growth in our traditional non-living benefit variable annuity and our structured products, and we discontinued nearly all sales of living benefit products.
On the insurance side, we continued to have a strong business. We shifted to our variable universal life and disability products from our fixed insurance, based on the low interest rate environment and are seeing strong sales growth. And we leveraged our strength in data and AI capabilities to continue to evolve our underwriting and streamline processes to improve the client-advisor experience and our risk controls.
Overall, we have a high-quality, differentiated insurance and annuity business that is serving clients well while generating good free cash flow and returns. We’re delivering strong financial results that we believe are sustainable as the businesses are generating good risk-adjusted returns for the company.
The use by Ameriprise Financial of any MSCI ESG Research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Ameriprise Financial by MSCI. MSCI services and data are the property of MSCI or its information providers and are provided “as-is” and without warranty. MSCI names and logos are trademarks or service marks of MSCI.
At Ameriprise, we are proud of the high level of employee engagement our teams consistently demonstrate — it’s core to our caring culture. In fact, we consistently score above industry averages in our annual engagement survey and earn some of the highest scores across industries.
And like so many other companies, we continued to adapt to the challenges of this ongoing pandemic. In true Ameriprise fashion, we stayed focused on our clients and adapted well. We began the year largely working from home and, as the year progressed, we returned to the office with a level of flexibility. It has been terrific being back together more. The team found a good balance and we’ve continued to adjust to the changing environment. Our culture of planning helped us navigate this transition effectively, and I’m proud of how well we executed over this period — caring for clients, each other, and the communities where we live and work.
We’ve always managed our business responsibly and stayed focused on the interests of all our stakeholders. Our long-term business success and sustainability go hand-in-hand and we’re making good progress evolving our programs. Our top priorities remain talent development and retention; advancing our diversity, equity and inclusion programs; strong compliance and good governance; as well as data privacy and security. In addition, we are evolving our climate capabilities, managing our emissions as a low greenhouse gas emitter, and continuing to advance our reporting.
I encourage you to review our 2022 Responsible Business Report on ameriprise.com to learn more about our approach to sustainability and the progress we are making.
In terms of community, we’ve always believed strongly in giving back, and we continued to support our communities through targeted grants, volunteer activities and the generosity of our people. There was an even greater need in our communities with the pandemic and devastating weather events in 2021, and to help meet this need, we increased our grantmaking budget and employee giving match in the U.S. We also donated an additional 750,000 meals to our long-time partner Feeding America®.
Ameriprise is dedicated to using the firm’s resources and talents to improve the lives of individuals and build strong communities. Through grants, volunteerism and employee and advisor gift matching programs, the company supports a diverse group of more than 7,600 nonprofits.
Helping meet basic needs and support community vitality across the country
More than a decade partnership with Feeding America and commitment to domestic hunger relief
Conducted two National Days of Service and provided virtual and in-person opportunities throughout the year, a 43% increase over 2020
Corporate, employee and advisor donations in 2021
Ameriprise has a powerful value proposition, a talented team and a track record of delivering excellent results.
We’re serving our clients’ financial needs well and focused on fostering even stronger relationships. Our businesses are performing well, with Advice and Wealth Management and Asset Management driving organic growth and generating excellent margins and returns. And our high-quality Retirement and Protection Solutions business is serving our clients’ comprehensive needs and generating good free cash flow and returns.
To close, Ameriprise is extremely well positioned and the opportunity before us is large. I believe we have the foundational strength, executional focus and growth strategy in place to navigate the next phases of the pandemic and the market and economic conditions ahead.
Importantly, we have the right team of people who care deeply about what we do for clients. Our differentiated track record for client satisfaction, engagement and growth is one we’re determined to build upon.
On behalf of all the people of Ameriprise — our 11,000+ 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 continue to do all we can to earn it.
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, 2021.
Morningstar: Past performance does not guarantee future results. Morningstar as of Dec. 31, 2021. Columbia funds are available for purchase by U.S. customers. Out of 91 Columbia funds (Inst. shares) rated, 16 received a 5-star Overall Rating and 37 received a 4-star Overall Rating. Out of 92 Threadneedle funds (highest rated share class) rated, 19 received a 5-star Overall Rating and 35 received a 4-star Overall Rating. Out of 62 BMO funds, (highest rated share class) rated, 8 received a 5-star Overall Rating and 18 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 RatingTM 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 RatingTM is for class Institutional shares only; other classes may have different performance characteristics and may have different ratings. © 2021 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, BMO Asset Management Limited, LGM Investments Limited, and Pyrford International Ltd, are SEC- and FCA-registered investment adviser affiliates of Columbia Management Investment Advisers, LLC based in the U.K. 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. Ameriprise Insurance Company. Advisory services and products are made available through Ameriprise Financial Services, LLC (AFS), a registered investment adviser. Securities offered through Ameriprise Financial Services, LLC. Member FINRA and SIPC.
Ameriprise Bank, FSB provides deposit, lending, and personal trust products and services to its customers, including clients of Ameriprise Financial Services, LLC. (“AFS”). Ameriprise Bank, FSB and AFS are subsidiaries of Ameriprise Financial, Inc. AFS financial advisors may receive compensation for selling bank products.
Ameriprise Bank, FSB. Member FDIC.
Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.
The Most Trusted Financial Companies Survey is issued by Investor’s Business Daily and TechnoMetrica Market Intelligence, ranking financial companies based on consumer trust. The study was conducted in two phases between July 9 and Aug. 11, 2021, with 343 individuals responding to Phase 1 and 6,578 participants in Phase 2. Seventy-four companies met the requirements for inclusion in the rankings, i.e., 100 or 125 respondents, depending on the category. Phase 1 identified attributes of financial institutions that are most important to consumers in terms of “trust.” Phase 2 used the attributes defined in Phase 1 and respondents evaluated companies on a five-point scale based on how much they trusted the company regarding that attribute. Scores were computed by taking the difference between the percentage of respondents giving high and low scores. Percentages were weighted and used to produce the Trust Index rating. See https://www.investors.com/news/most-trusted-financial-companies-survey-methodology/ for the full methodology.
Certified as of December 2021. J.D. Power 2021 Certified Customer Service ProgramSM recognition is based on successful completion of an evaluation and exceeding a customer satisfaction benchmark through a survey of recent servicing interactions. Our advisors evaluated our performance in these factors: satisfaction with the IVR routing process, and the customer service representative which includes knowledge, courtesy, concern, call duration/transfers/hold time, and timeliness of resolution in addition to overall satisfaction. Ameriprise engaged J.D. Power to be independently evaluated through this program and cite the results. For more information, visit www.jdpower.com/ccc.
Clients can respond to an internal Ameriprise survey and rate an advisor or practice based on their satisfaction with the team or practice, on a scale of 1 to 5 (1 = extremely dissatisfied to 5 = extremely satisfied). Client experiences may vary and working with any Ameriprise Financial practice is not a guarantee of future financial results. Investors should not consider this rating a substitute for their own research and evaluation of a financial practice’s qualifications. Only clients with access to the Ameriprise Secure Client Site may submit a rating. Ratings reflect an average of all client responses received over a rolling two-year period as of Dec. 31, 2020.
|Adjusted operating net revenues (in millions)||2021||2020||2019|
|Total net revenues||$13,431||$11,899||$12,967|
|Less: Revenues attributable to the CIEs||107||71||88|
|Less: Net realized investment gains (losses)||90||(11)||(14)|
|Less: Market impact on non-traditional long-duration products||38||10||—|
|Less: Mean reversion related impacts||1||—||—|
|Less: Block transfer reinsurance transaction impacts||(644)||—||8|
|Less: Integration/restructuring charges||—||—||(3)|
|Less: Gain on disposal of business||—||—||213|
|Less: Market impact of hedges on investments||(22)||—||(35)|
|Adjusted operating total net revenues||$13,861||$11,829||$12,710|
|Adjusted operating earnings per diluted share (in millions, except per share amounts)||2021||2020||2019|
|Less: Net income (loss) attributable to the CIEs||(3)||3||1|
|Add: Integration/restructuring charges1||32||4||17|
|Add: Market impact on non-traditional long-duration products1||656||375||591|
|Add: Mean reversion related impacts1||(152)||(87)||(57)|
|Add: Market impact of hedges on investments1||22||—||35|
|Less: Net realized investment gains (losses)1||87||(10)||(4)|
|Less: Block transfer reinsurance transaction impacts1||521||—||—|
|Less: Gain on disposal of business1||—||—||213|
|Tax effect of adjustments2||11||(63)||(79)|
|Adjusted operating earnings1||$2,724||$1,770||$2,190|
|Weighted average common shares outstanding:|
Pretax adjusted operating adjustment.
Calculated using the statutory tax rate of 21%.
|Per Diluted Share||2021||2020||2019|
|Less: Net income (loss) attributable to the CIEs||(0.03)||0.02||0.01|
|Add: Integration/restructuring charges1||0.27||0.03||0.12|
|Add: Market impact on non-traditional long-duration products1||5.47||2.98||4.35|
|Add: Mean reversion related impacts1||(1.27)||(0.69)||(0.42)|
|Add: Market impact of hedges on investments1||0.18||—||0.26|
|Less: Net realized investment gains (losses)1||0.73||(0.08)||(0.03)|
|Less: Block transfer reinsurance transaction impacts1||4.34||—||—|
|Less: Gain on disposal of business1||—||—||1.57|
|Tax effect of adjustments2||0.09||(0.50)||(0.58)|
|Adjusted operating earnings1||$22.70||$14.08||$16.10|
|Adjusted operating return on equity (in millions)||2021||2020||2019|
|Adjusted operating earnings||$2,724||$1,770||$2,190|
|Total Ameriprise Financial, Inc. shareholders’ equity||$5,689||$6,171||$5,837|
|Less: Accumulated other comprehensive income, net of tax||301||301||122|
|Total Ameriprise Financial, Inc. shareholders’ equity excluding AOCI||5,388||5,870||5,715|
|Less: Equity impacts attributable to the consolidated investment entities||2||1||1|
|Adjusted operating equity||$5,386||$5,869||$5,714|
|Return on equity, excluding AOCI||51.2%||26.1%||33.1%|
|Adjusted operating return on equity, excluding AOCI2||50.6%||30.2%||38.3%|
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; gain on disposal of business; 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%.
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%.
|Mix Shift (in millions)||2021||2020||2019|
|Advice & Wealth Management pretax adjusted operating earnings||$1,743||$1,321||$1,509|
|Pretax adjusted operating earnings excluding unlocking||$1,743||$1,321||$1,509|
|Asset Management pretax adjusted operating earnings||$1,096||$697||$661|
|Pretax adjusted operating earnings excluding unlocking||$1,096||$697||$661|
|Retirement & Protection Solutions pretax adjusted operating earnings||$735||$480||$724|
|Pretax adjusted operating earnings excluding unlocking||$740||$775||$740|
|Percent pretax adjusted operating earnings from Advice & Wealth Management excluding unlocking||49%||47%||52%|
|Percent pretax adjusted operating earnings from Asset Management excluding unlocking||31%||25%||23%|
|Percent pretax adjusted operating earnings from Retirement & Protection Solutions excluding unlocking||20%||28%||25%|
Excludes Corporate & Other Segment.
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, 2021.
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
Ameriprise Financial, Inc.
S&P 500 Index
S&P 500 Financials Index
*$100 invested on Dec. 31, 2015, 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.
Ameriprise Financial Center
707 2nd Avenue South
Minneapolis, MN 55474
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
Independent Registered Public Accounting Firm
45 South 7th Street, Suite #3400
Minneapolis, MN 55402
The Board of Directors of Ameriprise Financial intends to hold the annual shareholders meeting on Wednesday, April 27, 2022, at 11 a.m. Central time. Information about the event will be provided to shareholders in the company’s 2022 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.
As of Feb. 11, 2022, there were 12,202 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 2022. 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, 2021.
Shareholder and Investor Inquiries
Written shareholder inquiries may be sent to:
Broadridge Corporate Issuer Solutions, Inc.
P.O. Box 1342
Brentwood, NY 11717
Corporate Secretary’s Office
1098 Ameriprise Financial Center
Minneapolis, MN 55474
Written inquiries from the investment community should be sent to:
243 Ameriprise Financial Center
Minneapolis, MN 55474
The following service marks of Ameriprise Financial, Inc. and its affiliates appear in this report:
Columbia Threadneedle Investments®
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.
This report was printed using a printer recognized by Printing Industry Midwest 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.
James M. Cracchiolo
Chairman and Chief Executive Officer
Walter S. Berman
Executive Vice President, Chief Financial Officer
Executive Vice President and Global 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
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
President, Insurance & Annuities
William F. (Ted) Truscott
Chief Executive Officer, Global Asset Management
Executive Vice President, Global Chief Investment Officer
Scott E. Couto
Executive Vice President, North America, Global Asset Management
Chief Executive Officer, EMEA, Global Asset Management
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.
Former Executive Vice President
Global Human Resources
The Estée Lauder Companies Inc.
Lon R. Greenberg
Chairman Emeritus and Former
Chairman and Chief Executive Officer
Robert F. Sharpe, Jr.
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
Siebert Williams Shank & Co., LLC