Ameriprise Financial (NYSE:AMP) Q4 2025 Earnings call January 29, 2026 08:00 AM ET Company ParticipantsCraig Siegenthaler - Managing DirectorJim Cracchiolo - Chairman and CEOJohn Barnidge - Managing DirectorStephanie Rabe - Company RepresentativeSteven Chubak - Managing DirectorTom Gallagher - Senior Managing DirectorTyler Mulier - Equity Research AssociateWalter Berman - CFOWilma Burdis - DirectorConference Call ParticipantsBrennan Hawken - Senior Equity Research AnalystSuneet Kamath - Senior Research Anal ...

Ameriprise Financial (NYSE:AMP) Q4 2025 Earnings call January 29, 2026 08:00 AM ET Company ParticipantsCraig Siegenthaler - Managing DirectorJim Cracchiolo - Chairman and CEOJohn Barnidge - Managing DirectorSteven Chubak - Managing DirectorTom Gallagher - Senior Managing DirectorTyler Mulier - Equity Research AssociateWalter Berman - CFOWilma Burdis - DirectorConference Call ParticipantsBrennan Hawken - Senior Equity Research AnalystSuneet Kamath - Senior Research AnalystNone - AnalystOperatorWelcome to the ...

Ameriprise Financial (NYSE:AMP) Q4 2025 Earnings call January 29, 2026 08:00 AM ET Speaker0Welcome to the Ameriprise Q4 2025 earnings call. We are experiencing technical difficulties this morning. Our targeted start time is now 8:15 A.M. Eastern Time. Welcome to the Ameriprise Q4 2025 earnings call. We are experiencing technical difficulties this morning. Our targeted start time is now 8:15 A.M. Eastern Time. Thank you. Welcome to the Ameriprise Q4 2025 earnings call. We are experiencing technical difficult ...

Group 1 - Equitable Holdings (NYSE:EQH) is recognized as one of the best financial pure plays under $100, with a bullish rating initiated by Mizuho Securities analyst Yaron Kinar, who set a price target of $66, indicating over 37% upside potential from current levels [1] - Kinar's positive outlook is attributed to a strong preference for life insurance businesses, where Equitable Holdings has a significant presence through a comprehensive suite of products, including Variable Universal Life, Indexed Universal Life, Term Life insurance, and Annuities [2] - As of December 30, Equitable Holdings received coverage from 8 analysts, with 6 assigning Buy ratings and 2 giving Hold ratings, leading to a median 1-year price target of $63, which implies nearly 31% upside from the current market price [3] Group 2 - Equitable Holdings is a leading financial services firm in the United States, providing retirement plans, wealth management, insurance, and protection services, along with a diverse array of products [4]

Financial Data and Key Metrics Changes - Ameriprise Financial reported adjusted operating EPS excluding unlocking increased by 12% to $9.92, with a strong margin of 27% across the firm [16][17] - Assets under management, administration, and advisement reached a record high of $1.7 trillion, up 8% year over year [5][17] - Adjusted operating net revenues excluding unlocking increased by 6% to $4.6 billion, driven by asset growth [16][17] Business Line Data and Key Metrics Changes - In Wealth Management, adjusted operating net revenues increased by 9% to $3 billion, with client assets growing to a record $1.1 trillion [19][20] - Wrap assets increased by 14% to $650 billion, with wrap flows of $30 billion over the past year [18][19] - Retirement and Protection Solutions reported pre-tax adjusted operating earnings of $200 million, reflecting strong interest earnings and higher equity markets [24] Market Data and Key Metrics Changes - Net outflows in asset management improved significantly to $3.4 billion, with retail flows benefiting from higher gross sales [23] - The company experienced solid interest in variable universal life and structured variable annuities, indicating strong demand in the market [9][24] Company Strategy and Development Direction - The company is focused on sustainable, profitable growth and enhancing its value proposition through investments in technology and advisor capabilities [7][12] - Ameriprise Financial is leveraging its bank to minimize the impact of Fed Funds rate reductions on its AWM business [22] - The launch of the Signature Wealth Platform is expected to attract new assets and improve client portfolio management [8][112] Management's Comments on Operating Environment and Future Outlook - Management noted a fluid operating environment with elevated inflation and interest rates, but emphasized the company's resilience and relevance [4][5] - The company is well-positioned for future challenges, supported by a diversified revenue mix and effective expense management [5][12] - Management expressed confidence in the company's ability to navigate market changes and maintain strong client satisfaction [12][15] Other Important Information - Ameriprise Financial returned $3.1 billion of capital to shareholders over the past 12 months, maintaining a strong capital return strategy [26] - The company has a strong balance sheet with excess capital of $2.2 billion and $2.5 billion of available liquidity [25][26] Q&A Session Summary Question: Can you comment on the Comerica relationship given the recent M&A? - Management expressed confidence in the relationship with Comerica, highlighting strong reviews from their executives and advisors [32][34] Question: Can you unpack what happened with the two large advisor teams that left? - Management indicated that the departures were one-off events and emphasized strong recruiting efforts, bringing in 90 new advisors [36][38] Question: Is the lower flow activity this year an indicator of market conditions? - Management suggested that the market is hot, but client engagement and transaction activity remain strong [40][41] Question: Do you see opportunities arising from potential over-leveraging in the market? - Management affirmed that downturns present opportunities, emphasizing the company's strong fundamentals and client satisfaction [43] Question: Can you provide an update on the Signature Wealth Platform rollout? - Management reported that the rollout is going well, with positive feedback from advisors and early success in attracting new assets [110][112]

Financial Data and Key Metrics Changes - Ameriprise reported adjusted operating EPS increased by 7% to $9.11, with a strong margin of 27% [22] - Adjusted operating net revenues increased by 4% to $4.3 billion, driven by asset growth and strong transactional activity [22][24] - Return on equity remains high at 52%, among the best in the industry [7][20] Business Line Data and Key Metrics Changes - Wealth Management adjusted operating net revenues increased by 6% to $2.8 billion, benefiting from strong net inflows and market appreciation [28] - Client assets grew to a record $1.1 trillion, up 11%, with total WRAP assets increasing by 15% [9][26] - Asset Management total assets under management and administration increased to $690 billion, up 2% year-over-year and 5% sequentially [15][31] Market Data and Key Metrics Changes - Assets under management, administration, and advisement reached a new high of $1.6 trillion, reflecting strong client flows and equity market appreciation [7][24] - The bank's total assets increased by 6%, with good loan growth driven by new product launches [12] Company Strategy and Development Direction - The company is focused on significant investments in client experience, technology, digital capabilities, and AI to enhance productivity and client engagement [8][10] - Ameriprise aims to maintain a strong balance sheet while returning capital to shareholders, targeting an 85% payout ratio for the second half of the year [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and competitive strengths of the business despite market volatility and economic uncertainties [6][21] - The company anticipates continued growth opportunities from cash holdings on the sidelines and strong client engagement [9][10] Other Important Information - Ameriprise was recognized for outstanding overall satisfaction and quality of advice, receiving accolades from Kiplinger's and Fortune [21] - The company maintains a strong excess capital position of $2.3 billion above regulatory requirements [34] Q&A Session Summary Question: Drivers of software flows in 2Q and indications of NNA reaccelerating - Management noted that flows were impacted by tax payments and market conditions but started to recover later in the quarter [37][38] Question: Year-on-year trajectory for AWM distribution expense - Management indicated that distribution expenses are influenced by advisor productivity and compensation structures, with some rational behavior observed in the market [39][41] Question: Recruiting strategy and market outlook - Management highlighted a focus on selling the total value proposition to advisors, emphasizing productivity and support rather than just competitive packages [46][48] Question: Update on annuities and their positioning - Management confirmed continued interest in structured annuities and those without living benefits, aligning with clients' retirement needs [50][51] Question: Share buybacks and payout ratio expectations - Management stated that the target payout ratio is 85%, with the potential for adjustments based on shareholder interests [56] Question: Competitive environment and advisor growth expectations - Management confirmed that advisor numbers are growing, with a focus on maintaining productivity and quality rather than just increasing headcount [60][62] Question: Risk transfer updates and investment income - Management noted improvements in life claims contributing to profitability, with no current strategic risk transfer opportunities identified [64][66] Question: Bank and credit union pipeline updates - Management expressed confidence in the bank's pipeline and ongoing efforts to secure deals [81][82] Question: Asset management flow performance and outlook - Management acknowledged higher redemptions but noted good underlying sales and product development initiatives [88][90] Question: Balancing human capital addition versus automation - Management emphasized ongoing investments in technology and AI to enhance advisor capabilities while managing expenses [91][93] Question: Pipeline opportunities across affiliation channels - Management confirmed a broad recruitment strategy focusing on appropriate advisors and a strong pipeline for the upcoming quarter [99][100]

Financial Data and Key Metrics Changes - Ameriprise Financial reported adjusted operating EPS increased by 7% to $9.11, with a strong margin of 27% [23][25] - Total revenues increased by 4% to $4.3 billion, driven by asset growth and strong transactional activity [23][25] - Return on equity remains high at 52%, reflecting the company's strong profitability [7][21] Business Line Data and Key Metrics Changes - Wealth Management adjusted operating net revenues increased by 6% to $2.8 billion, benefiting from strong net inflows and market appreciation [28] - Client assets grew to a record $1.1 trillion, up 11%, with total WRAP assets increasing by 15% [9][26] - Asset Management total assets under management and administration increased to $690 billion, up 2% year-over-year and 5% sequentially [16][31] Market Data and Key Metrics Changes - Assets under management, administration, and advisement reached a new high of $1.6 trillion, benefiting from strong client flows and equity market appreciation [7][25] - The company experienced $8.7 billion in outflows in the quarter, largely driven by higher institutional impacts [17][88] - Gross sales in Global Retail increased by about 10% year-over-year, despite higher underlying redemptions [17][88] Company Strategy and Development Direction - The company continues to invest significantly in technology, digital capabilities, and AI to enhance client experience and advisor productivity [8][12] - Ameriprise launched Signature Wealth to improve wealth management capabilities, allowing advisors to manage client assets more holistically [12] - The company aims to maintain a balanced approach to share buybacks and dividends, targeting an 85% payout ratio for the second half of the year [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and competitive strengths of the business, despite market volatility and economic uncertainties [6][22] - The company anticipates continued strong performance in the wealth management sector, supported by high client satisfaction ratings [8][22] - Management noted that the economic environment remains firm, but uncertainties around tariffs could impact future performance [7][22] Other Important Information - Ameriprise received recognition for outstanding overall satisfaction and was named one of America's most innovative companies in 2025 [22] - The company maintains a strong balance sheet with excess capital of $2.3 billion above regulatory requirements [34] - The Retirement and Protection Solutions segment reported a 9% increase in pretax adjusted operating earnings, reflecting strong interest earnings and favorable life claims [33] Q&A Session Summary Question: Drivers of software flows in 2Q and indications of NNA reaccelerating - Management noted that tax payments and market conditions impacted flows, but recovery was seen later in the quarter [39][40] Question: Year-on-year trajectory for AWM distribution expense - Management explained that distribution expenses are influenced by advisor production levels and market conditions, with a focus on maintaining expense discipline [41][43] Question: Recruiting strategy and market outlook - Management highlighted a strong pipeline for recruiting experienced advisors, emphasizing the value proposition and support provided to them [48][49] Question: Share buybacks and payout ratio expectations - Management confirmed a target payout ratio of 85% for the second half of the year, with the potential for adjustments based on market conditions [57][58] Question: Competitive environment in AWM and advisor growth expectations - Management indicated that they are experiencing growth in advisor numbers and are focused on maintaining a strong advisor base [60][61] Question: Updates on Retirement and Protection Solutions performance - Management noted strong fundamentals in the RPS segment, with favorable life claims contributing to improved earnings [64][66] Question: Dynamics in the bank's securities portfolio and loan strategy - Management confirmed expectations for spread increases as the securities portfolio matures and emphasized the launch of new liability products to support loan growth [71][74] Question: Asset management flow performance and outlook - Management acknowledged higher redemptions but noted strong gross sales and ongoing product development efforts [86][89] Question: Weighing human capital versus automation and AI investments - Management stated a commitment to investing in technology and automation to enhance advisor productivity while also considering human capital needs [92][94] Question: Growth drivers in AWM and advisor recruitment - Management confirmed that core growth primarily comes from existing advisors, with recruitment serving as a supplementary growth driver [107][109]