Ameriprise Financial (AMP) 24 Oct 242024 Q3 Earnings call transcript

Welcome to the Q3 2024 Earnings Call. My name is Audra, and I will be your operator for today's call. [Operator Instructions] As a reminder, the conference is being recorded. I will now turn the call over to Alicia Charity. Alicia, you may begin.

Thank you, and good morning. Third Call. Financial's Ameriprise to Quarter Earnings Welcome

On Chairman Chief and with me Financial Jim Cracchiolo, today are CEO; the call Officer. and Walter Berman,

questions. Following remarks, we'd happy take their be your to

are Turning available X, to will discussion a forward-looking see presentation our materials you on website. On earnings our Slide statements. of that

found non-GAAP will numbers reference provide company's the insight various the today's numbers their financial GAAP non-GAAP in of respective to during be on Specifically, hear measures, and call, can into operations. you to our which believe materials Reconciliation we website.

risks our this could Some XXXX that be make can earnings in risks overall of list materially may we be These reflecting a as actual report statements publicly and statements. looking, and and make to date factors update of annual management's plans forward-looking about on forward-looking uncertainties. revise and to XX-K release, call cause events A different these quarter today's or statements be only speak from and involve forward-looking no of future obligation our sample XXXX XXXX forward statements our report. to third We performance. expectations and operating found results shareholders number

over a analysis. with more performance results. And focus the financial trend you of our turn adjusted of that, will the business by results facilitates X, underlying our believes page understanding comments the operations I'll adjusted management enhances see the will makes meaningful on Slide and that, operating Jim. that the see our third top of on On today the it you call of core at the Many Below management GAAP for quarter. results, which reflecting to operating

everyone. morning, Good

very good The on we saw, performing quite strong quarter year. building well. you As had business is another another

we in quarter heightened of as with continue Fed since geopolitical risk. and that as occurred to manage markets the In interest moderated. the to for time the the inflation volatility environment, even short-lived and know, lowered spikes election XXXX first uncertainty related rates the Equity external terms of appreciated investors U.S.

is we're positioned and While environment our is navigate fluid, Ameriprise ahead. the clients extremely what's well helping

expense assets unlocking, financials management operating trillion, in severance adjusted Earnings return $X.X excellent complementary to a increased continue success net consistent And and for billion. XX%, of on from our XX.X% It the to adjusted with that terms up to generated the revenue For and the and we up strong an administration under power Ameriprise total XX.X% excluding our of up The were businesses per quarter $X.X our compared ago. was earnings the quarter, deliver equity. increased relationships for of comes to XX%, again year share client XX%. XX% results.

advice proposition a client growth. In trillion record the is had wealth $X and and management, passing value our assets drive helping markets. satisfaction from Total practice client up mark, XX% excellent goal-based flows to new strong

flows significantly, had fact, back of XX% into wrap in inflows XX% up to billion advisers, putting the our nearly the In highest transactional quarter. XX% in X our guidance billion more increased and marks This past for level activity are up to clients from in $XX quarter, assets year over investment fee-based including we billion were wrap $X significantly, quarter. billion $XXX years. Total up reached than the year-over-year. the money Flows $X.X work. With client advisory net

savings products coming bank with up assets to out bank, grew the At next new opportunities lending and over other balances from term and funds cash year-over-year to solutions are the still market and to some than into clients more wrap their to X% seen $XX nicely, money opportunity further there's additional elevated, There shift we've billion. time. redeploy money we're are products While expand overall and year. for

client CRM supporting and preparation analytics with addition, capabilities powerful and AI. meeting of our data-driven take In advisers from to advanced insights advantage

it among new in to As adviser these provide growth opportunities. even $XXX,XXX per another And growth productivity XX% high further best of Ameriprise and more, the the a should industry adviser. advisers capabilities remains uptake and increased

had joining feel the quality their leading advisers Ameriprise excellent quarter stand and Regarding and good and with service, industry our the XX see a about of I'm experienced we good our to in practices. recruiting, out productive we client pleased growth advisers pipeline. firm, overall for

list fact, that XX Ameriprise years. consistently well ranked terms in in out. Top And Independent Financial Ameriprise we record advisers the had has scored recently for overall a In very Barron's XXX many came of trust Advisor

and And also disability of positive about products variable They return advisers high-quality VUL results personal business, are life the goals. spent driving the from our I energized combined a with insurers our and quarter. for conference. benefits month, environment products. be universal see with and flow both in profile. differentiated profitable the and our to that XX% We've sales enable Retirement strong continued continue and They're In at of clients time on of and we've consistent XX% underwriting appropriate we up attract how with it sales alike their business and nice for earnings. Council risk Chairman's opportunities to the drove free cash efficiencies, to and of the Life living proud most to annuities our helps strong Life us. In automated of Ameriprise our front books we interest direction Advisory Last majority part generates Protection one appreciate annuities named we achieve sales consistently structured the Solutions, top and on with advisers rankings. variable were and been in and sales good that's created without & capital health again up this annuities, variable past focused environment. in accelerated accumulation-focused These

continue We're strong generating the Management. adjust Asset results financial we to business. Moving as to

$XXX management under to quarter. billion in Assets XX% increased the

outflows and and net this level the we've We seen to regard a in legacy delivery gross and tax net periods, as due we funds income $X.X into and taxable model to of and XX-year equities, across to outflows America flows about included is fixed have billion, reflected ETFs income which net delivery. excellent fixed And With performance performance Retail in at $XXX million X as XXX and were outflows insurance multi-asset $X.X X-, in nice both improved year-over-year well exempt. strategies offer across billion partners. in Morningstar of globally. the sales from improved EMEA pickup in both quarter, better X XX% and and North X- inflows model

last expand just And SMA delivery. We've continue a and We X the ETF to how both and we'll building these the over few time. we ETFs have successfully tax-efficient strategies and further strength are flows look with investment equity evolve to flows XX quarter. our also been player legacy areas, investment to to And product traditional institutional, gain active out in business partners, capabilities. our of line income We're credit. our level over added top and in were in we years, a deliver our flat in and leverage businesses in we built our beginning out good insurance model excluding

in adjustments EMEA team We're positioning that driving As is growth. particular the discussed, the necessary improvements region. organization, future for in the making and include operational on business streamlining the focused very we

profitable to In focused positioning these that to our the systems will market invest improving better drive Ultimately, changing better adapt and asset on areas growth. leveraging addition, processes technology in and to dynamics. globally. we're we're savings management We're redeploying

to Ameriprise You in to continues the build results the can the results. benefits will level, back for of that things see firm upon strong some consistently year. Bringing our we quarter next generate

Our long-term excellent. record is

and the of the we've years, proud As of operating consistency balance growth have of from and remains annual excellent level just proposition. benefits last across that a industry, in equity that key differentiator. firm-wide XX% client result example, the delivering unique that Ameriprise. an looking in over our our results are sheet clear X leverage highest teams reflect together important and and capabilities return delivered consistently we value the a the EPS our back and working among the We're on to our compound combination And

delivered. and the that's the in activities business firm together, using we've one working consistency are the We results of reflected of the strength and

there's risk based market interest that reviewed keeping a in discuss on asked the Before the and believe Walter I and whether time book at to best options close, of opportunity you've thoroughly our about will at time do this an detail. We is changes. more transfer care shareholders. in long-term this this

we longevity and best and quarter, Management shared key we regularly how Ameriprise last XXX the among earns Ameriprise closing, for the business. recognized being awards Top legacy. In Journal we culture marketplace manage our in managed list. Wall in operate, XXX on firm years including the the How companies our to Street that is recognized

Women employers. large one best one America's ranked Forbes Newsweek. by of Magazine has Workplaces Greatest America's us named also as Ameriprise for been as of And

engagement serving then more We now in on forward. I'll ask received perspective also Walter with to take his business annual clients across continue internally our people quarter earn scores detail to we're our well benchmarks recognition questions. excellent Ameriprise, and focused that as your exceed build, industries. and after on external to we the quarter, we in continue and Across year the invest year in provide we'll the take

with operating strengthen excluding our and you, growth of and to unlocking, EPS further future client to to company's XX% initiatives strong, navigate associated points value. and severance The unique and consistent, and our them between ability drives operating the $X.XX, enhance profitable effectiveness Adjusted Thank the nature events. business experience diversified efficiencies shareholder expense Jim. leverage stress to increased

strong and the platforms. firm's per to accruals costs, on growth In share and severance quarter. recognized addition $X.XX compensation. expense relating to the in the achieved severance further strong cloud-based of the expenses additional This transition acceleration mark-to-market demonstrates share-based impacts of to Higher related compensation to program performance we underlying technology

equity across This management resulted effectiveness. efficiency XX% strong strong under operational trillion, and increased expenses our G&A businesses. depreciation. well benefiting continue administration demonstrate and over be in $X.X from to and our focus and revenue year growth client market the to managed on XX% Assets past flows has

discipline will particularly objectives. We maintaining in future drive areas Wealth continue achieve business growth, shareholder invest in while Management, to that expense to

are remained margin XX%. returns excluding strong a expenses equity and of XX%, Balance liquidity Our and fundamentals, of unlocking return strong. very consolidated best-in-class on severance excess including a capital sheet with

to operating XXXX, significant million model to from business integrated free to see return model diversified capital stable shareholders consistent performance. operating business expect returned XX% and all leverages We to in segments. quarter. across X, $XXX Slide of and of we drive the flow shareholders. On benefits will In to key you XX% continue strong contributions Our our business earnings cash linkages

Our across leverage gain we is for profitable growth shareholders with is a model business company whole. market from driver the our cycles. one which segments Ameriprise X for key of business

clients. For example, within and Threadneedle Management, our open network provide Wealth AWM Columbia solutions and important RiverSource to

and adviser satisfaction of levels high in client and result relationships These retention.

at staff needs where our These is India and with wealth certificate past in and we and while assets they increase groups. flows sweep a corporate driving the all-time grew our the cash and $X.X strong of manage assets net have growth high XX% capabilities with efficient up driven an at to year. example Another net income bank adjusted drove and Slide and XX% assets, high-quality Ameriprise offset XX%. by flow delivered and you margin to increased Total ago. at of separate $XXX to the returns to million, high wrap in benefit trillion remained net general XX% client or from $XXX technology, management across results our functions enhance leverage adviser assets strong a a Management. $X an XX% transactional strong billion increased increased manner market Wrap quite X% Columbia in annualized cycles. On meet investment growth year for to in XX% operating an to revenues from Threadneedle market bank. the to include earnings the This activity on RiverSource, up flows strong account management to from billion in strong consistency Wealth new client capabilities, Adjusted per revenue X% appreciation expertise client ability $XXX,XXX, the from of quarter X, leverage asset operating and were see growth are able Pretax segments rate. which These billion earnings and performance. $X over earnings credit the core strong lower company by year-over-year from

broker cash billion was of clients' Total and which over funds CDs market including the was third-party balances, X% $XX assets. money

yield-oriented products in more than CDs. money Clients remain like concentrated funds like heavily certificates products term highly being the favor liquid in and with products market brokered

continued this products at to We rates are see Client we creates grew and Bank cash net approximately $XX increased more current beginning transactional were to billion. income markets platform prior and balances and normalize, other forecasted flat sweep expenses XX%, quarter this expect quarter environment. operating lower billion, significant with opportunity. wrap and the put rate million, reflecting XX%, investment a were increased up providing $XX.X the growth money expenses in and and expenses stable in continue higher assets accrual distribution which in over in activity. to the on These $XXX with trends sustainable year as regulatory clients at quarter. in G&A back expenses a business volume-related to our October. Adjusted work time

expectations. accrual Excluding expenses G&A year consistent the regulatory in in quarter, were period, the the X% with ago up

Adjusted With X% to market effectiveness G&A higher clients' in earnings the our a quite from quarter. Turning X. The reflecting enhance margin to Asset from XX% AUM increased to improving In operational to expenses expenses the our the $XXX Management equity efficiency operating year increased quarter, on and from results $XXX initial very strong were million strong X%. to needs. increased company's and meet were to reached further ago, XX% XX%. enhance Slide primarily ability benefits and appreciation. operating billion, initiatives Financial

the to X. million, free pretax over earnings, interest the high assumptions million, an the to basis. partially business long in and markets to earnings, & $XX the Slide on of We has distribution expenses on which actuary in built continued a operating Solutions sales flow reflecting unlocking is quarter levels. X% of resulting our by were expected excluding assumption persistency of $XXX $XXX higher excluding annual quarter, rates, operating with our been completed offset strong unfavorable increased pretax deliver adjusted to to and earnings level of strong higher generation, variable primarily Year-to-date, updates with million, update the Let's from Protection in Retirement $XXX for time. associated annual turn an that period pace adjusted unlocking related Pretax reflecting good pretax benefit quality cash million impact approximately annuities.

up primarily momentum Our lapse improved product. protection very Protection and products. Retirement this assumptions the higher-margin annuity experience, & our with sales grew level. Overall, $X.X VUL is sales with now XX% quarter, in XX% in recent are Variable with aligned structured to Solutions million, we in with strong sales to comfortable billion $XX

remained and balance Turning Balance to capital. on cash billion strong of XX. free $X sheet with the excess Slide fundamentals sheet flow generation

for sources diversified businesses, from have our strong consistent This and of return growth. capital long-term supports Ameriprise's We consistently by enabled capital dividends to fundamentals. value. all business return underlying invest drives shareholder our ability to future shareholders strategy

of on long Ameriprise a the to summary, in is XX, record outperform delivered quarter, our excellent third Slide financial stated In continuation our growth which targets. track

we XX%, unlocking Return years growth. billion capital Return past last grew We increased trends the revenue equity EPS earnings XX%. the annual XX $X.X XXX points, returned to had are grew X% nearly cycles to business performance as on complementary the as shareholders. growth. consistent of financial companies, trends capital billion our speaks services our nature the mix well. and improved focus points, of term across profitable to differentiated $XX.X longer X on of with growth, months, Over compounded to XX similar XX% excluding per most growth basis this percentage revenues we on returned Compared shareholders. over multiple of share well as over These equity and

some to Before retain care we additional let Slide me XX. decision insight Q&A, on long-term move provide to into our

shareholders. are business we to have In and of the is opportunities been interest assessing the concluded this in related completed that process retaining risk long-term care. have aware, As best our the the you potential of quarter, in we transfer analysis

is the between that difference found retaining substantial block reinsuring value a and in analysis block. there the Our

concluded care not the assessment stand-alone level that are appropriate market Our that matured of an long-term not transfer high-quality by differentiation and for blocks risk counterparties. deals ours has receiving like

to to offset will include to Our to a transaction applied business books counterparty of tremendous require value transfer would us that unwarranted LTC. discounts other

me we performed which continue expectations years, good business Let our the about our and very to over long-term several expect better has of the forward. clear, care feel going we than past quality it be

As trend $XXX you should business of X years earnings generated statutory the over continue. has the that have million past seen, and

process supported the run seen process terminating that proven over without continue and with accurate. a experience XX% declined over X/X already claim. will XX% size the has have with book off off our This business We years. next of book remaining very the run by to to of extensive has over the expected This reserve XX

actions related program will We able premium performance. and upside improve repositioning, also rate investment to portfolio from be other to enhancements additional future capture increases to

a maintain our a of to well of capital plausible counterparty transaction. In with about there will supplement confidence as strong experience a excellent that, summary, do reserves, going and had good that we our reinsurance as an with With believe quality need your and additional and our high quarter a our is we'll exposure. In on position, $XXX not We how position the We take capital justify million questions. capital credible not and could do differentiated risk positioned and closing. given deal at levels block in scenario taking these are we transfer executing forward. we feel

Instructions] at Jefferies. first Suneet We'll from our [Operator question Kamath take

the synergies across flows you start guess, Asset there wanted have I in Management. interesting with -- I about that is businesses. talks retail that it to slide was the

helpful and as is, terms you if the of could in So that some would Management of X I structurally give be you is there that that Wealth businesses the Management you're well. advantage improving guess And doing take Advice strategically, question anything a fact examples, outlook? Asset to flow within these have

Yes, Suneet, this is Jim.

the years, business and they are distribution globally partner to Colombia. for ] regard, business. now architecture, presented working on an product, a in actually slide, need. more of of that that opportunity our our saw in [ we especially increase Ted established open his growing solutions you type many think within for and partner. to Walter as channel the institutional, as opportunity that the well is we to some as large valued gear the much as AWM think a focus And we distribution that as are used great over there AWM And and again. in They've we I the more even in And put that and team on is as is him on activity third-party product there bring that for focus a So we haven't to

working he's that so we And as flows well has bringing think to can within bear on combination he current solutions garner a the channel. of that other as solutions

Got it.

these Okay. funds into comment in into there? on are to a as sort of then market moving duration the the on sort you for just the what's is about your that what Is term rotation And money made that longer is Or wealth read of going other what you do products, it wrap cash of positioning products? on? terms think client advisers going opposed

increase income. portfolios, fixed diversified like in which saw includes a we into So again wrap flows XX%

so a nice it's flow And rebalancing occurring and increase. there

assets wrap just like the into And would then less they levels into that call it And other vehicles out in just markets. longer so what moved could brokered into going interest-earning of into or is what duration. things are income those, we even did pure that cash though products what fixed that aren't back didn't go possibly a certificates, and I to up move -- have and people locking money broadly down is the see says move really more CDs total,

Goldman go Blostein to at We'll Sachs. next Alex

within you revenues talk hoping was in AWM outlook could totality. your I about for cash guys

'XX? on earlier of kind and of in of Jim, So basis given the the to are little the for bank, made referred that stable keep comments current still certs cash party to about a revenue trajectory you growing kind together we the expand But you bank. like regarding know for there bank curve thoughts could stand-alone the think broker-dealer and third more this ways trends and to I putting some aim the your maybe NII morning or just balances, within the what the kind business, a it you of forward kind past, bit

Well, as it's I Walter. indicated,

and and actually interest do good to and yes, bank, the revenue see increase. stable. trends feel some market the as we very will, believe moving, For it about mentioned, we're net And and money that be would I see, see the income, is are Jim certainly, stop And that that going on from we positioning. We will CDs sweep bulk -- the overall, in how softening hoping money earnings is. But probably -- depending do we we from CDs third-party the be hopefully CDs. you'll come will rates down. coming of the certs, continued of the we third-party certainly think that bank, then product. our go will back I as rate But the on money from and be rotation get and the the drastic and into again impacted to out will the market

And that later perspective, be Alex, would bank be of at quarter. launching bank cash alternative be and pledge in HELOCs We'll accounts also the the putting beginning holding out where year. We'll we in the checking banks. cash next this loan another offering launching be CDs fixed clients in year from the a are will

to that more that save. having more current as well again, could from cash holding bring our that clients they are bank So utilize accounts or here activities cash can

think we things, both nice a know be because have but loan from of they can out So complementary. our and lending a think they there, they'll can well I garner and and again, in. as lending we take builds, activities savings those be And we books clients we lot have will gradual that lot as

sense. makes That you. got I

there. trajectory Asset margins For my the G&A on a I business follow-up, to wanted spend minute and the Management expense

think, of on in are a that second a year declining you row business. in expenses So track, for guys I

of market levels this your How the despite XX% several still I now. to how of that plus about, pushing efficiencies AUM efficiencies, expect segment? in think, over business and the record you us this that to to is talked level to profitability think margins, year? G&A think next, Speaking you sustainable call impact do obviously, the record additional in that in the you it, Maybe segment dollars a quarters you a give sense

Walter. it's Again, Sure.

at the 'XX. in on predict based we've controllables transformation our the that taken 'XX, in that we've had we be. taken looking And actions on But I the again, on markets action see will impact certainly continue So where and can't and it's -- will the for same and at servicing at improve stay margins probably market be X% with the XX% see think with -- improve time, the our levels, in you the could I client sure. good staying certainly range to XX%

We'll Raymond Wilma to Burdis move at James. next

on beyond? Good kind morning. XX% think about I Can track guys walk for return how that capital guess and you through you level for are year. of us you XXXX this

Well, talking as certainly, the market should probably is that a be on right and you next 'XX we now, we everything, and good we'll project believe we're number that at XX%, for for based that use year.

a have again. position. up good excess The capital built has We

and into circumstances on go opportunities. have we other depending market 'XX, as And so flexibility we

million, And for would there's expenses? a think other then -- around said it it things. million what conversion rate I guys sounds run $XX little you and to previously corporate you cloud like $XX some consider but some good was

talk about bit little that. maybe a So just

the our it, And first end go cloud later we we through So you that. that million quarter. and X But the in maybe improve and in obviously, made the we've return should over mainframes quarters, Once to X. that. [indiscernible] probably assume should probably last range, we as the have probably our which severance, we the once we no and -- get should investments we on $XX than should through in to that

go next to Research. We'll Steven at Chubak Wolfe

start with the to wanted question on outlook. a off expense I

was AWM, enterprise budgeting offer growth some the thinking we are in current of flows the well both AWM be just as and given are you hoping how for investment you're on as level. baseline? that And versus Just ramp next signs looking to at inflecting process see up that just sneak a outlook G&A bit already thinking could a peek the year. imagine you I through about to

Jim list, Well, The on what following the the industry wrap, flows the is has we're I think good on as news indicated. are.

mentioned, on in the probably good the Again, is range growth the in cloud, but it a gauge. X% we're expenses, good in in So AWM, and probably probably and severance with probably making the the the like range that a investment flattish again, to I X% investment thinking.

enterprise level, just And the broadly? more at

about the cloud, Again, will -- investment excluding -- aspect the mentioning and severance closer talking Enterprise but probably be we're that now in in range. to talking the flat.

Got inflection as it. to And pressure see something the AWM. flagged just know I nice that's trends. just of for landscape that the a on have certainly It's source follow-up competitive flow a in in on quarter. you some

you some hoping Just landscape, could just the offer FAs. cost acquire competitive to perspective on

come anticipate get move going rates recruiting looking be risen, As to perspective next potential have that. we've to decline? a want that's that to your Do with rates the to tailwind acquire. rates as just certainly seen to commensurate TA down on you higher I on cost to activity year? Do expect you

would a think up and So people probably are some utilizing think the their extra say, with people spread, frothy. I bit cetera. packages, yes, et goose And I it's I actually to

I in temper, what people some to starts doing. see adjustment be maybe may that think as think I you'll

But are we books maybe the other feel than about appropriate. more we're our that paying number of today we and a quality continue From it. are perspective, how things though a I good people. and up larger, people doing is good little come to markets the believe The count we're what do down. bit that get doing even has And with

perspective. helpful That's

Craig at comes Siegenthaler question Bank America. next of Our from

the my So question front. first on recruiting is

drove good and the declined So growth count And can the what you adviser pretty the XQ? felt if retention adviser talk you look about in with in expect XX quarter, sequential levels reaccelerate decline? adviser that to but strong given you additions, the

abnormal and adviser continue practices start bit will We some there to their But some lower back on some We we that to -- or additional some a the productivity, as there's FAs, the through as to that growth see. AFA teams the think nothing advisers Yes. track. adjust more. work things we get in major the and had turnover

back then value commentary Got view it. private the differs and care markets. long-term come I book of And how your in the to want to

public So or insurers block? how acquiring would manager And insurers? of can't or many I'm I that care long-term insurers private does curious, And include alternative market entities like models, what see the care robust bidding bid that? type today? for the asset are market and reinsuring for public for long-term is life

I only what exposed Well, to. we've comment can been

looking looking first, So then LTC we're -- for evaluated not that as alone. I is with beneficial. well we results we've just at are it's looking and with, that went not that it's on seeing at LTC again, the indicated, that standpoint, a both reinsurers it's market. -- just engaged certainly, through And have say discussions from known. And at can I mature both as we indicated, we certainly -- -- it fronts,

on So the comment deal well ones that with our the just am we we industry, the and the depth not I creation. going known don't certainly to the in of market. see It's value

you together, they it the there's core immature need of -- you sense about at quality good very good it my that is to proceeds type large it's those type from up actual capital admitted is this cetera. off reinsurers. Yes. than an market more There private on a want based up me opportunity wrong, And it some books our trade books. And very good people really type And they these discount gross the get but make don't From value that, that earnings other they for to have it The applying large when underneath. And for because partners, match or if us reinsurance a this on not but that very have to necessarily of put looks our the for. et wouldn't not based rather firms, partner things. look very would with with are our perspective, that it's maintaining even equity book, they're there. to results business. that And do is it track record. market. their want we would give we feel point They positive, and

Thomas We'll next ISI. Evercore go to at Gallagher

ask, deal bid you're curiosity, them negative care. long-term particularly Manulife it's there given seed. was to what out that was Just saying a I transaction, the you. first X% hear a according profitable a follow-up for precedent did of that on a just But on

to that to I just price was for you? that a if wouldn't get reasonable sand for? from was still worse distraction what perception in LTC might they high want So than a loss, be a sense or too standpoint, stand-alone of Like trade-off. to Because line I pay it that a of absorbing think it. management willing to Is money rid loss for the get a modest be a a do you had of go sort that? far your

Tom, very managing at years. And discussed try talking of them, let me actually we're it's have it's right? this feel way. we years, seen We're again, for as not all been book, the for that. the And considered, book we've and sets, our our this in very confident results it is distraction, stage it, starting we've about about our factors certainly to certainly but and loss. a is the manage confident work point not a it. our over When gone for address not value talking and we've And feel objective it which, reinsurers value and you've Obviously, many shareholder analyzed additive contributing, ability would but in different and over certainly us. we to of

positive we for it's and that So confident negative it approach. created feel a a with the us reinsurance

basically so that's where we're right And -- positioning now. we're

get perspective, very efficiencies From our you're always was something you we I And the we of question. question able been this, be managing rate. do know claims to Tom, book of even as The was have. good it's -- to looked running this be The We've adjusting value very because how it's management as life the handle and wrong, company. do take that to a off, book And very of back even improvement. showed is taken even We're resources some opportunity going large. flexibility looked on. there we Even and originally heard others our was have some we we books the book will reserves a whether good a other the not asking We me an in built have think far just at too a have is when challenged to as and It mature. forward. a ago, with greater like you, mature require rest we difference question, does with years extract, these not lot there concerns discretionary actually of very to have that the honest a book. don't number

And will books what would have as future combinations idea other life earning to have would earnings that on an impact, would it they market so our about lot just is it, they're it book be what accommodation, do because this discounts up they what that. on and any time, doesn't out But what's I or had against it's business the the -- is it. on take but they things, -- if earning will others, an thinking potential it plus more not does take a that there in us. So make there and some it would against sense what books, over small have. to just they'll speak, I'm handle that they Maybe for even be that need offset how what if as concern minor that about that do give gross we for to what were I you book, in very we in driving any a

have about. to don't think worry shareholders that issue really an I it's So

counterparty would of Yes. on The which just only we've to been thing the then, I -- exposure, formula. is course, even is not taking and that into add

a said, retain? makes just considered, all to things confidence on high sense So basis Jim as

everything about and particularly to has of think makes future addition profitable to it's I you that price. when that have -- you No, makes sense a probably flows, But capital that, all given all a release me, in that yes, cash sense.

quick X Just follow-up.

in was this capital sizable quarter. increase pretty the think excess I

going it think Was million. on up that anything drove $XXX went unusual there that quarter? by this I

has is, $XX the earnings. million, only certainly at strong out again, thing we paid No,

contributor the So that the But major really footing. sound Certainly we was we unique a to very outs. there's really, tracking it, on that thought. And nothing way was in it's and feel there. ins

and million, the forward. gives Yes. as we us $XX flexibility And we again, move $XX We're out it paid million. the generating

We'll take Markets. next RBC our from at question Lee Capital Kenneth

I'm curious the if could the follow-up quick X environment down meaningful change thinking change rate Just line? in your the on a block LTC here.

level No. hitting, We've will certainly invested out books payout more where the right the where where that into basis. go certainly on are now

So advantage that, and we feel we good that. very of took about

is answer the no, no. So

And Great. follow-up. quick X Okay. there. helpful Very

Advice Just better there model between Management integrated management expectation you any Management, RiverSource the insurance capabilities products the could asset more term, even various the you to that over the -- asset between there. side, some augmenting have Wealth longer that? slide potentially Asset in the and On is there thinking Is management there? that synergies, your of terms and example, for the of capture perhaps time curious see

Yes.

part we with really is that client, of that's manage And have leverage positive it those the so way. breaks everyone look provide how people of company to if really that in a the But understand, type the the all at what you assets because solutions behalf don't we a of the nature we and together down on and relationships segment.

very of and that, And we those of type of return relationship capabilities. the depth use because strong we the so a how have from

with the the So are business part management all assets, from of the run bank are income those corporate hedge the capabilities, we what things as RiverSource fixed including asset by Walter's Colombia. management does a of of department the how now right well as

are those gets fees, borrow sending the [ They benefit of to with put manage AWM and And of those very the good those asset a at benefit gets of we allocation ] RiverSource price company so there. solution all balancing portfolios. They manage roll-ups capabilities Colombia benefit out them management because the a to different asset good EPN players. capabilities gets synergies bear our rather on and and other models. all a that good the there the than can And the

manager So separate resource asset grew little solution complementary distinct than there's out for for as businesses. of And set. and a remember, Ameriprise that's management rather business real the the proprietary being nature AWM why us, a the just

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We'll KBW. go next Krueger Ryan to at

XXXX comment? be Walter, couple you when you I said flattish. to follow-ups. a comment? is a G&A expenses of XXXX Was expected had Or a One, that total company that

pretty actually, to a it's much. but same for XXXX XXXX, comment the That was going be

other XXXX when severance then we guess And things including and includes that the basis, a on about that? 'XX, I Okay. headline is flat, think costs like that

will should than at -- in But that little severance, but be why the will XXXX -- yes, in range. main, Well, I in level be I'm it there in that's again, -- the will But lower be anticipate, severance. it a a XXXX, that hedging was including level. be it those a some lower numbers, it because

of the then Okay. to assets to wanted about coming just I believe back the come to bank. X/X And just are -- the back floating rate.

be makes you can the further, down you So growing still the the Or talk the bank. to assets? rates income offset at from expected little down would what on come it pressure there coming more least that some and bit a confident be I with stable? think would short-term Is spread can feel just

repositioned and from Well, it recently will and yes, over book come we've with that down. long-term. we've Its the standpoint. But saying book a is repositioned the duration X

the come will floating, it what we're premium yes, So down, pretty a we're the earning large on on. but

will we'll adding certainly maturities I and we be interest our net said, So -- to should will income still it. it mean I higher. -- preserve get through, itself. think like be we we coming And I will

Morgan Stanley. next Michael move at We'll to Cyprys

Just earnings. out of deployment. to available that that imagine position capital you'll pay the coming the back XX% continues for billion build excess to $X I expectation is if

you're sit for how today? excess could potentially some capital you position time? sort strategic the be could the maybe how could where you you're of deploying additive and on thinking maybe for of of And priorities conversations M&A long? to the business M&A having some comment about What's of So excess period the that that speak to appetite to of what over type most

question. that to parts of lot a Have

the market returners just excess anybody that substantial through knowing done have XX% there we're highest a the the we of one exactly were done looked like We environment. we actually, is What to really what compared is So not cycle, today at replenished going capital at we've We some this feel level. amount. of is the out and environment.

we other the alternative business we whether We will 'XX depending the happens on we good, we the up further whether in have in environment look and how market at look values market redeploy bit we ways. more, some -- at that take into adjust of whether a or is and inorganic move as what we if buyback the for opportunities

at So of low us level but of not a it flexibility, good a we're return. level gives

look of let's And an can it including we a decide combination we at then factors, so as opportunity, on and it the environment. how based utilize

Yes.

and of the also previous, So probably increase to incurred $XX $XX the require bank, only will that. we'll of is, million to obviously, which expense would $XX we've obviously I certainly add as capital. the thing severance investing drive million We're additional million,

So we'll that's investing standpoint. investments also seed. And for which back get we are in from paid that

is mentioned, certainly multiple Management has the launching products. Asset Jim As

even and made excess, on just as growing deploy. we though the we'll we're keep that And evaluating so there's investments being

Great. just follow-up question. bigger a picture And then

Just as about think longer that people concerns living people may longevity outlive trends, we [indiscernible]. their

How evolve? population business? how the you your evolve set from change integrated also to and accumulation see your curious needs how may Just and client better experience to continue an for address set the opportunity might product aging

Excellent question.

will We manage we manage, et flexibility initiatives a and help cetera. solutions totality with reallocate, their lot our think have more product portfolios to balance, a how that advisers clients, number offering of they in new both of underway the

down formula your We are optimal and will income the longevity and how they point, products in draw what the for for for them the to that. of developing retirement gives process

clients. relationships from combination the And the our of our the again, those will with come have we knowledge have and with that we capabilities

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their the So how to market clients' the we will life go benefit there down. the actually factor how advice I look as well value What we and from set longevity. solution can as and opportunity good from with and think what's qualified, a on tax appropriate how based they for proposition in be a accumulate, at to well goals draw unqualified as as they need

go to Barnidge at Sandler. John we'll Next, Piper

there. the business, slides presentation. in analysis? only? question limited that My transfer you the with was liabilities analysis that it sale of Or focused talk the consider about to within other full a segment did risk is When coupling the Appreciate RiverSource on in corporate

of reinsurance on The we a that was care. get long-term care, long-term only your analysis that I'm I question. for sorry, answered

Yes. or transfer it life And included on it the thought some would was again, have books. about --

Yes. The -- but those all were best reinsurance transaction.

directionality my And and rate can of talk expense the then expected having the about helpful. AWM, changed intermediate you That's term? follow-up, near and distribution the shifting with in products cycle maybe in over

G&A embedded a and for including expense volume SMAs is in pay things. and asset managers run other distribution increases we So the actual where our really from

So that's the all in G&A.

So if good, strip flat. G&A is quite that actually we out,

in FDIC So like G&A, insurance, mean, including the are you it. things name increases volume I the

and So adjustments. capability cetera. we've very is reinvesting on say set what about technology, based that as includes the and et made we would nicely probably what in solution feel good are we I That G&A

able India, actually we're been a we've analytics, re-engineer, et AI, of sense transform robotics, cetera. So to in redeploy, how et cetera, use using of technology,

we're we what in maintain so doing, active very investments good we're So margins. make and that continue good to

UBS. at Hawken Brennan from question last our take We'll

under in Sneaking the wire.

questions of thinking bank. about the So a couple

growth pledge have that bottomed recent strong resi But in also So we've product rate of cut down. in And you've product growth protect expect they since with often other of engagement since And management to should in when we think lending. rates a you that note to seen decent in quarters ways recently? mid-XXXX. seen an pledge and wealth the know seeing in environment, We the I loans particularly continue been coming the rates seen think some pickup Fed that acceleration mortgage continue? loan I the firms spread regardless about to you've

Yes.

pledge. do we a So pickup nice in see

was We for portion in out that for, of was others even fixed the launching compared had, solutions. are the us, we're which that's have we business. a product we advisers our this what new to products complement and done pledge know also in underpenetrated to good know and a and marketplace We in were business what's and those a asking that

that, And think can that to so continue further we expand.

expand. year, next that. think can actually think, the again, We're years HELOCs we launching transferring a be had that when working provider that we're mortgages so built and a there's of We continue with we good we we to ago that could will think bank, in opportunity another nice we further that we We do portfolio HELOCs. launched

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comments yes. I your remember new Great, on Helpful. products.

Okay.

out long-term question, decision. one on second one care the my For closing basically here final just with

is flows you I'd they're buy obstacle in guys talking an is with in business or from So one you return perspective the insurance than like often very the here. my different capital management this have model take wealth firms, stock. business. that that markets And whatever. focused perspective other to not where have to or investors, on the cash insurance the It's The different a profile business

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behind that the the equation did into how and that consideration? come mathematics So

again, that what may So I very understood. not be is think, fully and clearly,

So company, been at shareholder at at of S&P total public, the since performing we look best been and looked the this we've of Ameriprise as we've financials the XXX. you the return have in

individual companies. financial have We cycles, individual managers, these all managers, Any outperformed. over segment, crisis including individual life through wealth asset

get lower at return volatility. very consistent a you all You it together, strong put

used insurance million of every or In hurt roadblock over cash to that, that good generate flow addition hindrance free year way back to has businesses $XXX generate or returns. any to a not stock been our buy in or

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would you've just say business, a I high returns. So got strong growth

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happy discussion say, investors, I would and probably do your to with would it have So I'm I that personally.

on your potential started exactly -- Walter, entered in we reaction. About let me what you would the which into the shareholder basis evaluation. on premise have was that drag the

every have we counterparty are evaluating that fact at these And that and shareholder listed take It could would analyze action long the I we clients that the not, really is So and created, the ask consider. bid We run. we exposures issue aspect knowing every factor. are an that generate conscience that aspect, clear that elements presentation looked again, the all and it our the really in which, an would. in certainly value to in in

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that Hopefully, question. your answers

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taken analyzing, This is it certainly So we one have no to risk when sense made off. do.

and matures I will way look in will the reinsurers, and the an one if or from that be more strategically there's for -- I an that the do every opportunity. Walter evaluate that me at every quarter. let I market first a year, appetite And of will business

because the same this decision it would I'm make. making at decision it challenged I've the with I'm questions. think you, right the but because same, decision this think not I'm asked I'm the I at to time. this I making fighting don't not So I juncture, right you. tell it's is just

you was That the the Yes. it addressed thoroughly. and of I think spirit question,

sharing. So for thanks

This further time. conference. we you no participating. And at have for concludes this today's Thank questions

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