Ameriprise Financial : 2021 Annual Report (PDF)

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2 0 2 1 A M E R I P R I S E F I N A N C I A L

Consolidated Highlights

(In millions, except per share amounts and as noted)

Adjusted Operating 1, 2	2021	2020	2019
Net revenues	$13,861	$11,829	$12,710
Earnings	$2,724	$1,770	$2,190
Earnings per	$22.70	$14.08	$16.10
diluted share
Return on equity
excluding accumulated	50.6%	30.2%	38.3%
other comprehensive
income, net of tax
Adjusted Operating
Before Annual
Unlocking	2021	2020	2019
Earnings	$2,730	$2,119	$2,206
Earnings per diluted	$22.75	$16.86	$16.22
share
Return on equity
excluding accumulated	50.7%	36.1%	38.6%
other comprehensive
income, net of tax

The schedule above is presented to provide insight into the effect of the company's annual review of insurance and annuity valuation assumptions and model changes (unlocking) on certain non-GAAP financial measures.

Given the non-cash nature of unlocking, management provides this additional detail to reflect the underlying performance of the business. See footnote 2 for more information about unlocking. 2019 includes results from the company's Auto & Home Insurance business that was sold in the fourth quarter of 2019.

GAAP	2021	2020	2019
Net revenues	$13,431	$11,899	$12,967
Net income (earnings)	$2,760	$1,534	$1,893
Earnings per	$23.00	$12.20	$13.92
diluted share
Return on equity
excluding accumulated	51.2%	26.1%	33.1%
other comprehensive
income, net of tax

	2021	2020	2019
Assets under
management and	$1,418	$1,102	$973
administration
(in billions)
Percent of Adjusted
Operating Earnings
Before Annual	80%	72%	75%
Unlocking from
Wealth and Asset
Management
Weighted average
common shares	120.0	125.7	136.0
outstanding - diluted
Cash dividends paid	$4.43	$4.09	$3.81
per common share
Common stock shares	7.1	8.4	13.4
repurchased

1. This Annual Report to Shareholders contains certain non-GAAP financial measures that management believes best reflect the underlying performance of our operations. Reconciliations of non-GAAP measures to the most directly comparable GAAP measure are on page 11.
2. Results include the non-cash impact of unlocking, which reflects the company's annual review of market-related inputs and model changes related to our living benefit valuation, insurance and annuity valuation assumptions relative to current experience and management expectations, and premium deficiency testing. To the extent that expectations change as a result of this review, the company updates its assumptions and models and the impact is reflected as part of annual unlocking.

D E A R F E L L OW

S H A R E H O L D E R S ,

I'm pleased to share with you that Ameriprise Financial had another excellent year in 2021. Our progress was both significant and consistent with the strategy we have been executing over many years. We've grown thoughtfully as a financial services leader that delivers an exceptional client experience while generating a differentiated level of outperformance across market cycles.

We work diligently every day to achieve our mission of helping clients feel confident about their financial futures. Individual and institutional investors globally rely on us to provide critical perspective and insight to help them achieve their financial goals. We develop personal relationships built on trust and leading capabilities, backed by a firm with an excellent financial foundation.

Many of us will recall 2021 as the second year of a global pandemic with all the related challenges and opportunities. Throughout this period, Ameriprise stood by our clients and benefited from our leading capabilities to ensure we could stay focused on our clients' needs and serve them holistically. We also continued to prioritize the health and safety of our Ameriprise team - our employees and advisors - who remained resilient, engaged and motivated.

Aided by positive equity markets, our clear focus on driving organic growth and identifying strategic opportunities led to outstanding performance. In fact, we delivered record financial results and another new high for assets under management and administration at $1.4 trillion, up 29% from a year ago.

And importantly, we continued to add to our outstanding 16-year record of generating and protecting shareholder value. For perspective, the total shareholder return of Ameriprise Financial common stock ranks third in the S&P Financials Index since we became a public company in 2005. And in 2021, we added to our track record. The total shareholder return of Ameriprise Financial common stock in 2021 was 58%, far outpacing the S&P 500 Financials Index and the S&P 500 Index. For those of you who have been shareholders since our spin-off or are newer to Ameriprise, we appreciate your confidence and support.

(continued on next page)

JAMES M. CRACCHIOLO CHAIRMAN AND

CHIEF EXECUTIVE OFFICER

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A R E C O R D Y E

A

R

;

A DVA N C I N G O

U

R

J

O

U R N E Y

A legacy built on strong, long-term

These

are

record results, and for additional

relationships

perspective, our higher-multiple growth businesses

delivered 80% of our 2021 adjusted operating

At Ameriprise, we care deeply about our clients and

earnings, ex-unlocking, up from 72% in 2020,

continuing the trend that we've driven over many

the

personal

relationships we build for the long term.

years. Not only did the business and profitability

The

quality

-

and longevity - of our relationships

grow significantly, but the contribution from our

have

always

defined us and are core to our success.

growth businesses also increased substantially,

In 2021, we extended this legacy and stood by our

complemented by our high-quality Retirement &

clients, as we have for many decades, helping them

Protection businesses in terms of earnings and

navigate the complexities of the environment and

free cash flow.

stay on course.

The strong relationships that form within our

Benefiting from our balance sheet

client experience are also reflected in our industry

strength and flexibility

recognition. Proudly, we continued to be recognized

for how we serve clients, including being ranked as

At Ameriprise, our balance sheet and capital

the No. 1 Most Trusted Wealth Manager in the U.S.1

And that recognition extends to our service teams,

management have always been defining strengths.

who were recognized for the third consecutive year

Our investment portfolio is high quality, and we

by J.D. Power for providing "An Outstanding Customer

maintain substantial liquidity as well as an

Service Experience" for phone support,2 as well as

appropriate excess capital position. Our business

our investment teams, who won numerous awards

generates consistent free cash flow, and in 2021, we

in the U.S., Europe and Asia for their performance.

took additional steps to free up capital to accelerate

our strategy, support long-term growth and generate

Executing our strategy and driving

shareholder value. This included reinsuring the vast

majority of our fixed annuity block and acquiring BMO

differentiated results

Financial Group's EMEA asset management business.

The market backdrop in the U.S. was quite positive

in 2021 as the economy grew with the recovery.

Strategic actions in 2021

Equity markets were strong overall. And while

interest rates remained at historic lows, inflation

• Acquired BMO Financial Group's EMEA

was higher than expected, driven by the dynamics

of the pandemic.

asset management business to meet

As you can see on the chart on the following page,

growing client demand and extend our reach

our financial results in 2021 were outstanding.

• Reinsured vast majority of RiverSource

Revenue increased 17%. Adjusted operating earnings

Fixed Annuity book to free up capital

were up 54%, with adjusted operating earnings per

to redeploy

diluted share up 61%. And we were one of only a few

• Grew Ameriprise Bank, FSB to expand

financial services firms to generate a return on equity,

our Wealth Management capabilities

excluding accumulated other comprehensive income,

and deepen client relationships

above 50%.

(See page 10 for source and disclosure information.)

2 | Annual Report 2021

Strong growth in adjusted operating results

Revenue	Earnings	Earnings per	Return on equity
$ in millions	$ in millions	diluted share	excluding other
			comprehensive
			income

$11,829	$13,861	$1,770	$2,724	$14.08	$22.70	30.2%	50.6%
2020	2021	2020	2021	2020	2021	2020	2021

$1.4 trillion

in assets under management and administration.

An all-time high and up 29% from 2020.

In fact, 2021 was the 11th consecutive year of returning approximately 90% or more of our adjusted operating earnings to shareholders - a clear differentiator for Ameriprise. We raised our dividend another 9%, our 17th increase since becoming public in 2005. If you consider our capital return over the last five years, we've reduced our average weighted diluted share count by 29%, a significant accomplishment.

Critically, we were able to provide this level of capital return while continuing to invest strongly in the business, make strategic acquisitions and maintain strong balance sheet fundamentals. While we've purposefully evolved over the years to meet the needs of a rapidly changing industry, our commitment to our mission has never wavered.

I'm proud of what we've accomplished on behalf of our clients and all our constituents over these many years, and again in 2021. I'm confident we're well positioned to continue to deliver differentiated value.

I'll now go into more detail about our businesses and our people, starting with Wealth Management, which performed exceptionally well.

Building on our leadership position in Wealth Management

Clients were highly engaged with us in 2021, turning to Ameriprise and our advisors for comprehensive advice to keep them on track to achieve their goals. Key to our approach is how we tailor the experience to each individual and family and bring the full breadth of the firm to bear to serve our clients' needs. This includes our broad range of high- performing products and solutions, as well as extensive digital capabilities to help ensure our clients feel connected, informed and confident about achieving their most important goals.

#1 Most Trusted

Wealth Manager in the U.S.1

With the strategic investments we've made over many years and our expertise in planning, Ameriprise is delivering a truly differentiated and referable client experience. It has made us one of the leading wealth

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