Ameriprise Profits Down on Market Volatility, LTC Reserve Boost

Ameriprise Profits Down on Market Volatility, LTC Reserve Boost

Amerprise Financial reported first quarter net income of $393 million, down 2 percent from a year ago and 8 percent sequentially on operating net revenues of $2.9 billion, up 3 percent year-over-year and down 2 percent from last quarter.

“Higher equity market volatility, unfavorable foreign exchange, and continued low interest rates did affect results, as did a long-term care reserve increase,” said Jim Cracchiolo, chairman and CEO.

Operating earnings per share were $2.18 for the quarter, up 7 percent from a year ago and down 5 percent sequentially, missing analysts’ expectations by $0.15, according to Seeking Alpha.

The firm’s operating expenses grew 3 percent during the quarter to $2.3 billion, which included a $32 million long-term care reserve increase in the current quarter and a $29 million reserve reduction in the year-ago quarter from policyholder behavior related to a product change.

Total assets under management and administration increased 4 percent to $815 billion, due to advisor client net inflows and market appreciation, the firm said.

Within the firm’s advice and wealth management segment, client assets grew 8 percent to $453 billion, while wrap assets rose 13 percent to $180 billion.

Advisor production reached a record $505,000 on a trailing 12-month basis, up 11 percent from the year-ago quarter and 2 percent from the fourth quarter 2014.

Advisor headcount reached 9,691, a gain of 19 from last quarter but a loss of 13 from a year ago. 

TAGS: Equities
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