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FinancialsAmeriprise Financial
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Financials
XBRL · SEC EDGAR2007–2025(19yr)| Metric | FY 2007 | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $8.8B | $7.1B | $7.5B | $9.6B | $10.2B | $10.3B | $11.2B | $12.3B | $12.2B | $11.7B | $12.1B | $12.9B | $13.1B | $12.0B | $13.4B | $14.3B | $16.1B | $17.9B | $18.9B | +5.5% |
| Net Income | $814.0M | -$38.0M | $722.0M | $1.1B | $970.0M | $1.0B | $1.3B | $1.6B | $1.6B | $1.3B | $1.5B | $2.1B | $1.9B | $1.5B | $2.8B | $2.6B | $2.6B | $3.4B | $3.6B | +4.8% |
| Net Margin | 9.3% | -0.5% | 9.6% | 11.4% | 9.5% | 10.0% | 11.9% | 13.2% | 12.8% | 11.2% | 12.3% | 16.2% | 14.4% | 12.8% | 20.5% | 17.8% | 15.9% | 19.0% | 18.8% | -0.1pp |
| Free Cash Flow | $460.0M | $1.8B | -$1.4B | $1.7B | $1.9B | $1.4B | $1.3B | $2.3B | $2.4B | $1.9B | $1.5B | $2.4B | $2.2B | $4.5B | $3.2B | $4.2B | $4.5B | $6.4B | $8.2B | +27.1% |
| FCF Margin | 5.3% | 25.4% | -18.6% | 17.9% | 18.8% | 13.3% | 11.2% | 18.6% | 20.0% | 16.0% | 12.7% | 18.8% | 16.8% | 37.4% | 23.8% | 29.4% | 28.0% | 35.8% | 43.2% | +7.3pp |
| EPS (Diluted) | $3.39 | $-0.17 | $2.95 | $4.18 | $4.37 | $4.62 | $6.44 | $8.30 | $8.48 | $7.81 | $9.44 | $14.20 | $13.92 | $12.20 | $23.00 | $22.51 | $23.71 | $33.05 | $36.28 | +9.8% |
1. THE BIG PICTURE
Ameriprise Financial has effectively decoupled its earnings growth from its balance sheet by transforming into a fee-collecting machine. By integrating wealth management, asset management, and protection products, Ameriprise Financial has created a closed-loop system where advisor productivity—now at a record $1.1 million per advisor—fuels a capital return strategy that saw 101% of adjusted operating earnings returned to shareholders last quarter (8-K).
2. WHERE THE RISKS HIT HARDEST
The "integrated model" that Ameriprise Financial cites as its core strength is directly threatened by market fluctuations because its revenue is overwhelmingly fee-based (10-K Item 1). When equity prices fall, the value of assets under management (AUM) drops instantly, reducing the fees that support the advisor platform. Furthermore, Ameriprise Financial’s "Retirement & Protection" segment faces a structural squeeze: while rising interest rates help some products, they may force Ameriprise Financial to credit higher rates to clients to remain competitive, potentially compressing the very margins the integrated model is designed to protect (10-K Item 1A). Finally, the "closed block" of long-term care insurance—discontinued in 2002—remains a persistent drag, requiring "nationwide premium rate increases" to offset the risks of policyholder longevity and morbidity (10-K Item 1).
3. WHAT THE NUMBERS SAY TOGETHER
The financial data reveals a company that is growing its bottom line through financial engineering and efficiency rather than raw top-line expansion. While GAAPGAAPGenerally Accepted Accounting Principles — the standard U.S. accounting rules all public companies must follow net income fell 6% in the most recent quarter, adjusted operating earnings per share rose 16%, driven by a massive 6.1% buyback yield—the second-highest in its peer group (8-K, XBRL). This divergence is explained by Ameriprise Financial's aggressive share retirement, which allows EPSEPSEarnings Per Share — the company's net profit divided by its share count; the most common per-share profitability metric to climb even when total net income wavers. Ameriprise Financial's revenue growth of 5.5% lags significantly behind peers like Charles Schwab (+22.0%), yet its free cash flow (FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders) margin of 46.3% is nearly five times that of Raymond James (XBRL). With short interest at a modest 4.2% of the float, market sentiment appears stable, viewing Ameriprise Financial as a steady cash generator rather than a high-growth disruptor (Yahoo Finance).
4. IS IT WORTH IT AT THIS PRICE?
At 9.8x forward earnings, Ameriprise Financial trades at a modest discount to the peer median of 10.9x. The market is currently pricing in a long-term growth rate of just 1.3% (CAPM analysis). This appears conservative given that Ameriprise Financial’s implied EPSEPSEarnings Per Share — the company's net profit divided by its share count; the most common per-share profitability metric growth—when factoring in the 6.1% share retirement from buybacks—is 7.4%. Ameriprise Financial’s valuation is supported by a net margin of 16.6%, which outperforms insurance-heavy peers like MetLife (5.5%) and Prudential (4.8%), though it remains well below the 34.8% net margin of Charles Schwab (XBRL). The 10% discount to the peer median is likely a "complexity discount" applied by investors wary of the regulatory oversight Ameriprise Financial faces as a Savings and Loan Holding Company, which can limit capital deployment (10-K Item 1A).
5. WHAT WOULD CHANGE THIS VIEW?
- Constructive if the Advice & Wealth Management margin (currently 29.3%) continues to expand alongside "wrap" net inflows, suggesting the integrated technology platform is successfully driving advisor scale (8-K).
- Cautious if Ameriprise Financial is forced to halt share buybacks due to regulatory intervention by the Federal Reserve, as the current valuation relies heavily on the 6.1% buyback yield to manufacture EPSEPSEarnings Per Share — the company's net profit divided by its share count; the most common per-share profitability metric growth.
- Cautious if morbidity or mortality assumptions in the closed long-term care block require a significant reserve strengthening, which would divert capital away from shareholder returns.
6. BOTTOM LINE
Structural Advantage: A high-retention advisor network integrated with a proprietary asset management arm that converts 46% of revenue into free cash flow. Bottom Line: Ameriprise Financial is a disciplined capital-return story that remains attractively valued as long as the market doesn't punish its legacy insurance ties.
1. Top 5 Material Risks
- Market Fluctuations: Ameriprise Financial’s results are sensitive to equity prices, interest rates, and market volatility. Because profitability depends on fees tied to the value of assets under management, market downturns directly reduce revenue.
- Interest Rate Sensitivity: Sustained low interest rates can reduce spreads or lead to negative margins on long-term liabilities like long-term care insurance and universal life policies. Conversely, rising rates may force Ameriprise Financial to credit higher rates to clients to remain competitive, potentially compressing profitability.
- Capital and Credit Market Conditions: Disruptions in capital markets can hinder access to liquidity and increase the cost of capital. A downgrade in financial strength ratings by agencies could damage public confidence and competitive positioning.
- Investment Performance: A drop in investment performance relative to competitors can lead to increased redemptions and the termination of asset management agreements, which are often terminable on 60 days’ notice.
- Operational and Cybersecurity Risks: Ameriprise Financial relies on complex technology systems and third-party vendors. Cybersecurity breaches, system interruptions, or the failure of third-party service providers could result in data loss, regulatory penalties, and reputational damage.
2. Company-Specific Risks
- Guaranteed Benefit Exposure: Ameriprise Financial holds variable annuity products with guaranteed minimum death, withdrawal, and accumulation benefits. Market declines can cause these liabilities to exceed current account values, requiring increased capital and hedging costs.
- Reinsurance Counterparty Risk: Ameriprise Financial uses reinsurance to mitigate risk but remains directly liable to policyholders. The insolvency or failure of reinsurers, such as Commonwealth or Genworth Life Insurance Company, would expose Ameriprise Financial to the risks it sought to transfer.
- Illiquid Asset Exposure: As of December 31, 2025, 8% of the carrying value of the investment portfolio consisted of relatively illiquid assets, including privately placed fixed income securities, mortgage loans, and limited partnership interests, which may be difficult to sell during liquidity needs.
- Franchise Advisor Model: Ameriprise Financial’s wealth management growth relies on a network of franchise advisors who control their own local technology environments. This decentralized structure creates risks regarding compliance, cybersecurity, and the potential for misconduct that Ameriprise Financial may be held responsible for by regulators.
3. Regulatory/Legal Risks
- Savings and Loan Holding Company Supervision: As a Savings and Loan Holding Company, Ameriprise Financial is subject to Federal Reserve Board (FRB) supervision, including stress-testing, resolution planning, and capital requirements. These regulations can limit the ability of subsidiaries to transfer funds to the parent company for dividends or stock repurchases.
- Conflict of Interest Scrutiny: Regulators, including the SEC, have increased scrutiny regarding potential conflicts of interest. Perceived or actual failures to address these conflicts can lead to enforcement actions, litigation, and client attrition.
- State Insurance Guaranty Funds: Ameriprise Financial’s insurance subsidiaries are required to be members of state guaranty fund associations. The insolvency of other unaffiliated insurers can trigger mandatory assessments, increasing costs for Ameriprise Financial.
- Intellectual Property Litigation: Ameriprise Financial faces the risk of costly litigation from non-practicing entities or other third parties alleging infringement of patents, trademarks, or trade secrets, which could result in injunctions against using certain processes or products.
4. Financial Impact Map
Market Volatility → Management Fee Revenues → Direct reduction in revenue as AUM values decline. Interest Rate Fluctuations → Net Earnings → Increased amortization of deferred acquisition costs (DAC) or goodwill impairment during periods of high surrenders. Guaranteed Minimum Benefits → Statutory Reserves and Required Capital → Market declines increase the cost of supporting guaranteed benefits, potentially requiring additional capital. Reinsurance Default → Results of Operations → Exposure to credit and performance risk if reinsurers fail to fulfill obligations. Regulatory Capital Requirements → Dividends and Share Repurchases → FRB or other regulatory limits on the ability of subsidiaries to transfer funds to the holding company.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-K | Feb 2026 | Dec 2025 |
| 8-K | Jan 2026 | — |
| 10-Q | Oct 2025 | Sep 2025 |