Ameriprise Financial, Inc. (AMP) Bundle
A Brief History of Ameriprise Financial
Ameriprise Financial, Inc. has a rich history that spans over a century, evolving from a small insurance company to a leading financial services firm. Founded in 1894 as the Investors Syndicate in Minneapolis, the company initially focused on life insurance. It was rebranded as Ameriprise Financial in 2005 after being spun off from American Express.
Company Growth and Development
In the early 2000s, Ameriprise expanded its services to include financial planning and investment management. The acquisition of several investment firms helped bolster its asset management capabilities. By 2024, Ameriprise managed approximately $1.2 trillion in assets under management (AUM) across its various investment products.
Recent Financial Performance
As of September 30, 2024, Ameriprise reported total net revenues of $4.4 billion, a significant increase from $3.9 billion in the same period in 2023. The net income for the same period was $511 million, compared to $872 million in 2023, reflecting a decrease of 41% year-over-year.
| Financial Metric | 2024 (Q3) | 2023 (Q3) | Change (%) |
|---|---|---|---|
| Total Net Revenues | $4.4 billion | $3.9 billion | 12.8% |
| Net Income | $511 million | $872 million | -41% |
| Pretax Income | $645 million | $1.1 billion | -42% |
| Effective Tax Rate | 20.7% | 21.8% | -1.1% |
Market Position and Strategy
Ameriprise has strategically positioned itself in the market by focusing on wealth management and financial planning services. The company's Advice & Wealth Management segment reported adjusted operating earnings of $2.4 billion for the nine months ended September 30, 2024, up 12% from the previous year. The firm continues to see growth in client deposits, which increased to $21.7 billion, reflecting a $0.8 billion rise year-over-year.
Share Repurchase Program
Ameriprise has been active in repurchasing its shares, having bought back 3.8 million shares for a total cost of $1.6 billion in the nine months ended September 30, 2024. The board authorized an additional $3.5 billion for share repurchases through September 30, 2025.
Investment Portfolio and Assets
The company reported a total investment portfolio valued at $56.7 billion as of September 30, 2024, with significant holdings in corporate debt and residential mortgage-backed securities. The effective management of its investment portfolio has contributed to the overall financial health of the firm.
| Investment Type | Value (in millions) |
|---|---|
| Corporate Debt Securities | $14,059 |
| Residential Mortgage-Backed Securities | $23,598 |
| Commercial Mortgage-Backed Securities | $5,459 |
| Asset-Backed Securities | $6,548 |
| State and Municipal Obligations | $646 |
Future Outlook
Looking forward, Ameriprise aims to leverage its strong market position and expand its service offerings. The firm is focused on enhancing client experiences through technology and personalized financial advice, which are expected to drive future growth.
A Who Owns Ameriprise Financial, Inc. (AMP)
Major Shareholders
As of 2024, Ameriprise Financial, Inc. (AMP) has a diverse ownership structure with significant institutional and retail investors. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| The Vanguard Group, Inc. | 8.75% |
| BlackRock, Inc. | 8.50% |
| State Street Corporation | 4.90% |
| Wellington Management Co. LLP | 3.25% |
| Invesco Ltd. | 2.80% |
| Ameriprise Financial, Inc. (Employee Ownership Plan) | 2.70% |
| Other Institutional Investors | 35.20% |
| Retail Investors | 31.00% |
Institutional Ownership
Institutional investors play a crucial role in the ownership of Ameriprise Financial. As of the latest reports, institutional ownership is approximately 66% of the total shares outstanding. This reflects a strong confidence in the company's growth potential and financial stability.
Recent Changes in Ownership
In the past year, Ameriprise Financial has seen some changes in its major shareholders:
- The Vanguard Group increased its stake by 1.5%.
- BlackRock reported a slight decrease in its holdings by 0.5%.
- State Street Corporation maintained its position with no significant changes.
- Wellington Management Co. LLP increased its stake by 0.3%.
- Retail investor participation has also grown, reflecting increased interest in the financial sector.
Shareholder Composition
The composition of Ameriprise’s shareholders is indicative of a balanced mix between institutional and retail investors, which helps mitigate volatility while providing stability. The following pie chart illustrates the distribution of ownership:
| Category | Percentage |
|---|---|
| Institutional Investors | 66% |
| Retail Investors | 31% |
| Employee Ownership | 3% |
Stock Performance and Market Trends
As of September 30, 2024, Ameriprise Financial's stock price was approximately $426.72, reflecting a year-to-date increase of 18%. The company’s market capitalization stood at $41.5 billion. The stock's performance has been buoyed by strong earnings reports and positive market conditions:
- Q3 2024 earnings of $511 million, a decrease of 41% year-over-year due to market impacts on long-duration products.
- Total revenue for Q3 2024 was reported at $4.397 billion, up from $3.925 billion in Q3 2023.
- Net investment income increased by 19% year-over-year, reflecting growth in Ameriprise Bank customer deposits and structured variable annuities.
Conclusion on Ownership Dynamics
The ownership dynamics of Ameriprise Financial, Inc. reflect a strong backing from institutional investors, coupled with a growing retail investor base. This structure is likely to provide the company with the necessary support to navigate market fluctuations and continue its growth trajectory in the competitive financial services landscape.
Ameriprise Financial, Inc. (AMP) Mission Statement
Mission Statement Overview
Ameriprise Financial, Inc. aims to help clients achieve their financial goals through a comprehensive approach that includes investment management, financial planning, and insurance products. The company emphasizes the importance of personalized service and financial advice tailored to individual client needs.
Financial Performance
As of September 30, 2024, Ameriprise Financial reported a significant increase in its financial metrics reflecting the company’s mission to enhance client wealth and financial security.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Management and Financial Advice Fees | $7,428 million | $6,623 million | +12% |
| Distribution Fees | $1,524 million | $1,462 million | +4% |
| Net Investment Income | $2,756 million | $2,318 million | +19% |
| Total Revenues | $13,277 million | $11,928 million | +11% |
| Total Net Revenues | $12,763 million | $11,543 million | +11% |
| Adjusted Operating Earnings | $2,588 million | $2,350 million | +10% |
Client Assets and Inflows
Ameriprise Financial’s client assets have shown robust growth, indicative of its effective strategy in wealth management:
| Asset Type | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Ending Wrap Account Assets | $569.1 billion | $488.2 billion | +17% |
| Average Advisory Wrap Account Assets | $79.5 billion | $67.2 billion | +18% |
| Net Inflows | $22.0 billion | $15.0 billion | +47% |
Banking and Deposit Growth
Ameriprise Bank has also seen an increase in deposits, reinforcing the firm’s focus on providing comprehensive financial solutions:
| Banking Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Bank Deposit Balances | $21.7 billion | $20.9 billion | +4% |
| Daily Average Interest-Bearing Deposit Balance | $21.4 billion | $20.1 billion | +6.5% |
| Average Interest Rate on Deposits | 0.44% | 0.38% | +15.8% |
Strategic Initiatives and Future Outlook
Ameriprise Financial continues to focus on expanding its services and enhancing client relationships through strategic initiatives, including:
- Investment in technology to improve client engagement and service delivery.
- Recruitment of experienced financial advisors to expand client outreach.
- Development of new financial products that address evolving client needs.
Conclusion on Mission Alignment
In alignment with its mission statement, Ameriprise Financial's financial health, client asset growth, and strategic initiatives collectively reflect its commitment to helping clients achieve their financial aspirations.
How Ameriprise Financial, Inc. (AMP) Works
Company Overview
Ameriprise Financial, Inc. (AMP) operates primarily in the financial services sector, offering a range of services including financial planning, asset management, and insurance solutions. The company is structured into three main segments: Advice & Wealth Management, Asset Management, and Retirement & Protection Solutions.
Financial Performance
For the nine months ended September 30, 2024, Ameriprise reported significant growth in various financial metrics:
| Metric | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Total Revenues | $8,460 | $7,400 | 14% |
| Total Net Revenues | $7,946 | $7,015 | 13% |
| Adjusted Operating Earnings | $2,410 | $2,153 | 12% |
| Net Income | $2,330 | $2,179 | 7% |
Advice & Wealth Management Segment
This segment is a key revenue driver, showing robust performance in management and financial advice fees, distribution fees, and net investment income.
| Metric | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Management and Financial Advice Fees | $4,739 | $4,077 | 16% |
| Distribution Fees | $1,820 | $1,714 | 6% |
| Net Investment Income | $1,674 | $1,409 | 19% | Total Revenues | $8,460 | $7,400 | 14% |
Asset Management Segment
In the Asset Management segment, total managed assets experienced a significant increase:
| Metric | 2024 (in billions) | 2023 (in billions) | Change (%) |
|---|---|---|---|
| Total Managed Assets | $672.1 | $587.2 | 14% |
| Net Flows | $(21.3) | $(12.0) | — |
Retirement & Protection Solutions Segment
This segment also showed growth in revenues driven by increased sales of life contingent payout annuities:
| Metric | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Management and Financial Advice Fees | $574 | $554 | 4% |
| Premiums, Policy and Contract Charges | $1,056 | $748 | 41% |
Market Overview
As of September 30, 2024, the company’s total assets under management (AUM) increased to $1.2 trillion, reflecting a strong market environment:
| Metric | 2024 (in billions) | 2023 (in billions) | Change (%) |
|---|---|---|---|
| Total AUM | $1,200.0 | $990.4 | 20% | Advice & Wealth Management AUM | $124.5 | — | — |
Operational Metrics
Ameriprise Bank's performance highlights include:
| Metric | 2024 (in billions) | 2023 (in billions) | Change (%) |
|---|---|---|---|
| Bank Deposit Balances | $21.7 | $20.9 | 3.8% |
| Average Interest Rate Paid on Deposits | 0.44% | 0.38% | 15.8% |
Stock Performance
As of September 30, 2024, Ameriprise's stock performance metrics include:
| Metric | Value |
|---|---|
| Stock Price | $XX.XX |
| Market Capitalization | $XX.XX billion |
Conclusion
Ameriprise Financial, Inc. continues to show strong operational and financial performance across its segments as of 2024, driven by market appreciation, net inflows, and effective management of its resources.
How Ameriprise Financial, Inc. (AMP) Makes Money
Revenue Streams
Ameriprise Financial, Inc. generates revenue through multiple segments, primarily focusing on Advice & Wealth Management, Asset Management, and Retirement & Protection Solutions.
Advice & Wealth Management
This segment is a significant contributor to Ameriprise's revenue, driven by management and financial advice fees, distribution fees, and net investment income. For the nine months ended September 30, 2024, the revenues in this segment were as follows:
| Revenue Source | 2024 (in millions) | 2023 (in millions) | Change (in millions) | Percentage Change |
|---|---|---|---|---|
| Management and Financial Advice Fees | $4,739 | $4,077 | $662 | 16% |
| Distribution Fees | $1,820 | $1,714 | $106 | 6% |
| Net Investment Income | $1,674 | $1,409 | $265 | 19% |
| Other Revenues | $227 | $200 | $27 | 14% |
| Total Revenues | $8,460 | $7,400 | $1,060 | 14% |
Asset Management
Ameriprise’s Asset Management segment also contributes significantly to revenue, primarily through management and financial advice fees, distribution fees, and net investment income. For the nine months ended September 30, 2024, the revenues were:
| Revenue Source | 2024 (in millions) | 2023 (in millions) | Change (in millions) | Percentage Change |
|---|---|---|---|---|
| Management and Financial Advice Fees | $2,240 | $2,110 | $130 | 6% |
| Distribution Fees | $289 | $272 | $17 | 6% |
| Net Investment Income | $40 | $29 | $11 | 38% |
| Total Revenues | $2,585 | $2,433 | $152 | 6% |
Retirement & Protection Solutions
This segment includes various insurance and annuity products. The revenues for the nine months ended September 30, 2024 were:
| Revenue Source | 2024 (in millions) | 2023 (in millions) | Change (in millions) | Percentage Change |
|---|---|---|---|---|
| Management and Financial Advice Fees | $574 | $554 | $20 | 4% |
| Distribution Fees | $314 | $298 | $16 | 5% |
| Net Investment Income | $790 | $613 | $177 | 29% |
| Premiums, Policy and Contract Charges | $1,129 | $1,086 | $43 | 4% |
| Total Revenues | $2,813 | $2,558 | $255 | 10% |
Net Income and Earnings Performance
For the nine months ended September 30, 2024, Ameriprise reported a net income of $2,330 million, an increase of $151 million or 7% compared to the previous year. The pretax income was $2,915 million, reflecting a 6% increase from $2,740 million in 2023.
| Financial Metrics | 2024 (in millions) | 2023 (in millions) | Change (in millions) | Percentage Change |
|---|---|---|---|---|
| Net Income | $2,330 | $2,179 | $151 | 7% |
| Pretax Income | $2,915 | $2,740 | $175 | 6% |
| Total Revenues | $13,277 | $11,928 | $1,349 | 11% |
| Total Expenses | $9,848 | $8,803 | $1,045 | 12% |
Investment Portfolio Performance
Ameriprise has benefited from favorable market conditions, with average equity markets increasing significantly. The average S&P 500 index rose 25% for the nine months ended September 30, 2024, compared to the prior year period.
Banking Operations
Ameriprise Bank has shown growth in customer deposits, with bank deposit balances increasing by $0.8 billion to $21.7 billion. The average interest rate paid on deposits increased to 0.44% from 0.38% in the prior year.
| Banking Metrics | 2024 (in billions) | 2023 (in billions) | Change (in billions) |
|---|---|---|---|
| Bank Deposit Balances | $21.7 | $20.9 | $0.8 |
| Average Interest Rate | 0.44% | 0.38% | 0.06% |
Overall, Ameriprise Financial, Inc. maintains a diversified revenue model that capitalizes on various segments, reflecting strong performance and growth in the financial market landscape.
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Article updated on 8 Nov 2024
Resources:
- Ameriprise Financial, Inc. (AMP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ameriprise Financial, Inc. (AMP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ameriprise Financial, Inc. (AMP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.