Ameriprise Financial Reports Second Quarter 2025 Results

Ameriprise Financial, Inc. (NYSE:AMP):

Second quarter 2025 GAAP results included favorable market impacts on the valuation of derivatives and market risk benefits, while the prior year quarter included unfavorable market impacts on the valuation of derivatives and market risk benefits.

Advice & Wealth Management generated pretax adjusted operating earnings of $812 million with a margin of 29 percent. Results reflected the impact from market volatility on fee-based earnings within the quarter, as well as lower interest revenue from the 100 basis point reduction in the federal funds effective rate in late 2024. The equity market recovery in June positions us well as we enter the third quarter.

Adjusted operating net revenues increased 6 percent to $2.8 billion from higher client assets, even with the impact from lower average equity markets within the quarter and the 100 basis point reduction in the federal funds effective rate.

Adjusted operating expenses increased 9 percent to $2.0 billion primarily driven by the consistent growth in advisor productivity. General and administrative expenses were $435 million reflecting strong expense discipline, as well as continued investments in growth initiatives and volume-related expenses due to business growth. For the full year, we expect general and administrative expenses to increase in the low- to mid-single-digit range.

Advice & Wealth Management metrics were impacted by elevated market volatility driven by global trade policy uncertainty, as well as normal seasonal tax payment trends. Clients and advisors remained focused on positioning portfolios to meet long term financial planning goals.

• Total client assets grew 11 percent to a record high of $1.1 trillion, with client flows of $4.3 billion.

• Wrap assets increased 15 percent to a record high of $615 billion. Wrap flows were $5.4 billion, representing a 4 percent annualized flow rate. In addition, we experienced a good initial response to the launch of our new Ameriprise Signature Wealth Program.

• Transactional activity remained consistent with the prior year.

• Cash sweep balances were in line with expectations at $27.4 billion compared to $28.6 billion in the prior quarter, reflecting normal seasonal tax payments.

• Bank assets grew 6 percent to $24 billion, providing sustainable net investment income in this forecasted lower rate environment.

• Adjusted operating net revenue per advisor on a trailing 12-month basis reached a new high of $1.1 million, up 11 percent from enhanced productivity, business growth and market appreciation.

• The company added 73 experienced advisors in the quarter.

   

Asset Management adjusted operating net revenues were $830 million. Pretax adjusted operating earnings increased 2 percent to $222 million, reflecting equity market appreciation and the positive impact from expense management actions, partially offset by net outflows. Results in the current quarter absorbed the impact of 2 percent lower average equity markets sequentially. Net pretax adjusted operating margin improved 140 basis points to 39 percent. The underlying fee rate remained stable.

Adjusted operating expenses improved 3 percent. General and administrative expenses improved 5 percent from a year ago, reflecting benefits from ongoing initiatives to drive additional operational transformation across our global footprint.

Assets under management and advisement increased to $690 billion, up 2 percent year-over-year and 5 percent sequentially.

Net outflows were $8.7 billion in the quarter. Retail and model delivery net outflows were $3.1 billion, primarily reflecting higher redemptions due to market volatility. Institutional net outflows were $4.8 billion, which included $1.6 billion related to the exit of Lionstone. Outflows related to legacy insurance partners were $0.8 billion.

Retirement & Protection Solutions pretax adjusted operating earnings increased 9 percent to $214 million. The strong and consistent results reflect the benefit from favorable life claims, stronger interest earnings and higher equity markets.

Retirement & Protection Solutions sales improved sequentially to $1.4 billion, with continued strong client demand for structured variable annuities.

These high-quality books of business continued to generate strong free cash flow with excellent risk-adjusted returns and continued to be an important contributor to our diversified business model.

Corporate & Other, excluding Closed Blocks, pretax adjusted operating loss was $100 million. Underlying pretax adjusted operating loss was relatively flat in the $85 to $90 million range, excluding severance and severance programs, the acceleration of the firm's transition to cloud-based technology platforms and mark-to-market impacts on share-based compensation in both periods.

Long Term Care pretax adjusted operating earnings were $7 million, a continuation of a solid performance trend.

Fixed Annuities pretax adjusted operating loss was in line with expectations at $6 million.

Taxes

The operating effective tax rate was 21.7 percent. The operating effective tax rate is expected to be 20 to 22 percent for full year 2025.

About Ameriprise Financial

At Ameriprise Financial, we have been helping people feel confident about their financial future for more than 130 years. With extensive investment advice, global asset management capabilities and insurance solutions, and a nationwide network of more than 10,000 financial advisors, we have the strength and expertise to serve the full range of individual and institutional investors' financial needs.

Ameriprise Financial Services, LLC offers financial planning services, investments, insurance and annuity products. Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA and managed by Columbia Management Investment Advisers, LLC. Threadneedle International Limited, Columbia Threadneedle Asset Managers Limited, Columbia Threadneedle (EM) 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 only by RiverSource Life Insurance Co. of New York, Albany, New York. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuity products in the state of New York. These companies are part of Ameriprise Financial, Inc. CA License #0684538. RiverSource Distributors, Inc. (Distributor), Member FINRA.

Non-GAAP Financial Measures

The company believes the presentation of adjusted operating measures and other non-GAAP financial measures, and the corresponding ratios, best represents the underlying performance of our core operations and facilitates a more meaningful trend analysis without the distortion of various adjustment items. Management uses non-GAAP financial measures to evaluate our financial performance on a basis comparable to that used by some securities analysts and investors and to provide a valuable perspective for investors. These non-GAAP financial measures are taken into consideration, to varying degrees, for purposes of business planning and analysis and for certain compensation-related matters. Non-GAAP financial measures are intended to supplement investors' understanding of our performance and should not be considered alternatives for financial measures presented in accordance with GAAP. These measures are discussed in more detail below and may not be comparable to other companies' similarly titled non-GAAP financial measures. Non-GAAP financial measure reconciliations can be found on the subsequent pages.

Forward-Looking Statements

This news release contains forward-looking statements that reflect management's plans, estimates and beliefs. Actual results could differ materially from those described in these forward-looking statements. Examples of such forward-looking statements include:

• statements of the company's plans, intentions, positioning, expectations, objectives or goals, including those relating to asset flows, mass affluent and affluent client acquisition strategy, client retention and growth of our client base, financial advisor productivity, retention, recruiting and enrollments, the introduction, cessation, terms or pricing of new or existing products and services, general and administrative costs, net pretax adjusted operating margin, consolidated tax rate, return of capital to shareholders, and excess capital position and financial flexibility to capture additional growth opportunities;

• other statements about future economic performance, the performance of equity markets and interest rate forecasts or variations, and the economic performance of the United States and of global markets;

• statements estimating the financial impacts and future profitability arising from the company's initiatives to enhance operational efficiency and effectiveness;

• statements concerning expected general and administrative expense for Advice & Wealth Management;

• statements estimating the expected full year 2025 operating effective tax rate; and

• statements of assumptions underlying such statements.

The words "believe," "expect," "anticipate," "optimistic," "intend," "plan," "aim," "will," "may," "should," "could," "would," "likely," "forecast," "on track," "project," "continue," "able to remain", "resume," "deliver," "develop," "evolve," "drive," "enable," "flexibility," "commitment," "scenario," "case," "appear," "expands" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from such statements.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Management cautions readers to carefully consider the risks described in the "Risk Factors" discussion under Part 1, Item 1A of and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2024 available at ir.ameriprise.com. Management undertakes no obligation to update publicly or revise any forward-looking statements.

The financial results discussed in this news release represent past performance only, which may not be used to predict or project future results. The financial results and values presented in this news release are based upon asset valuations that represent estimates as of the date of this news release and may be revised in the company's Form 10-Q for the period ended June 30, 2025.

Ameriprise Financial announces financial and other information to investors through the company's investor relations website at ir.ameriprise.com, as well as SEC filings, press releases, public conference calls and webcasts. Investors and others interested in the company are encouraged to visit the investor relations website from time to time, as information is updated and new information is posted. The website also allows users to sign up for automatic notifications in the event new materials are posted. The information found on the website is not incorporated by reference into this release or in any other report or document the company furnishes or files with the SEC.

Other

Kiplinger: Ameriprise did not pay a fee to be evaluated for this list but did pay a fee to cite the results. Kiplinger readers were invited to take the 2025 Readers' Choice Awards survey on Kiplinger.com from Feb. 20-March 21, 2025. Within the wealth management services category, respondents selected the wealth management provider they used most frequently and rated that provider on a ten-point scale in four criteria: likelihood to recommend to others, overall satisfaction, trustworthiness of the firm's advisers and quality of financial advice. Kiplinger awarded multiple providers with the highest-scoring providers in each criterion with an "outstanding" designation. Award is not indicative of future performance or representative of any one client's experience. For more information, visit https://www.kiplinger.com/personal-finance/kiplinger-readers-choice-awards. From Kiplinger's Personal Finance. ©2025 The Kiplinger Washington Editors. All rights reserved. Used under license.

Fortune: Fortune partnered with Statista to recognize America's Most Innovative Companies 2025 — the top 300 U.S. companies based on analysis of product innovation, process innovation and innovation culture. Statista surveyed over 40,000 U.S. employees and 2,500 experts in various fields, evaluated patent data, and gathered input from an innovation expert advisory board. Surveys were conducted in Q4 2024. Ameriprise did not pay a fee to be evaluated, but did pay a fee to publicly cite the results. Find more information at https://rankings.statista-research.com/Americas_Most_Innovative_Companies_2025_Methodology.pdf