Ameriprise Financial(AMP) - 2025 Q1 - Quarterly Report

Financial Performance - Adjusted operating earnings for the three months ended March 31, 2025, were $950 million, up 8.2$878 million in the same period of 2024[252]. - The net income for the twelve months ended March 31, 2025, was $2.994 billion, a decrease of 4.3$3.129 billion in 2024[255]. - Total revenues for the three months ended March 31, 2025, were $4,481 million, an increase of$156 million, or 4%, compared to the prior year period[264]. - Net income decreased by $407 million, or 41$583 million for the three months ended March 31, 2025, compared to $990 million in the prior year[264]. - Adjusted operating earnings per diluted share increased to$9.50, up from $8.39, representing a growth of 13.3$1.5 trillion in assets under management, administration, and advisement, reflecting a 3% increase from $1.45 trillion in the previous year[244][261]. - The total assets under management increased by$19.5 billion, or 2%, from $1.127 trillion in 2024 to$1.146 trillion in 2025[261]. - The Advice & Wealth Management segment's assets under management grew by 10% to $569.1 billion, up from$518.1 billion in the previous year[261]. - Total Assets Under Management (AUM) increased by $19.5 billion, or 2$1.1 trillion as of March 31, 2025, driven by a 51.0 billion increase in Advice & Wealth Management AUM and a 30.7 billion decrease in Asset Management AUM[262]. - Total client assets increased by $68.7 billion, or 7$1.0 trillion as of March 31, 2025, primarily due to market appreciation and client net inflows[280]. Revenue and Fees - Management and financial advice fees increased by $203 million, or 8$2.9 billion for the three months ended March 31, 2025, a 6% increase from $2.7 billion in the prior year[286]. - Management and financial advice fees rose by$210 million, or 14%, to $1.7 billion, driven by an 18$88.0 billion[287]. Expenses and Costs - Distribution expenses increased by $193 million, or 14$185 million, or 14%, to 1.6 billion, reflecting higher transactional activity and investments in recruiting experienced advisors[291]. - General and administrative expenses for the Corporate & Other segment decreased by 6 million, or 8%, for the three months ended March 31, 2025, compared to the prior year[318]. Investment and Market Conditions - The S&P 500 daily average increased by 18% from 4,996 in 2024 to 5,899 in 2025, indicating a favorable market environment[258]. - Net investment income decreased by $60 million, or 11$500 million, primarily due to lower average invested assets and unfavorable investment yields[289]. - The anticipated deposit growth is expected to be positively impacted by rising interest rates, which will affect investment portfolio yield[352]. Cash and Liquidity - Total cash balances increased to $86.0 billion as of March 31, 2025, up from$82.4 billion in the prior year, with Ameriprise Bank deposit balances increasing by 7%[283]. - The company maintained substantial liquidity with $7.8 billion in cash and cash equivalents as of March 31, 2025[323]. - The parent company had$1.3 billion in cash, cash equivalents, and unencumbered liquid securities as of March 31, 2025, compared to $856 million as of December 31, 2024[324]. Corporate Actions and Strategy - The company is focusing on a strategy to shift towards lower-risk products, including exiting variable annuities with living benefit riders[352]. - The company anticipates adjusted operating earnings per diluted share growth of 12% to 15% in the upcoming periods[253]. - The company continues to monitor the potential impact of the OECD's Pillar Two model rules on its consolidated financial statements[332].