The paragraph is an introduction to Ameriprise Financial's fourth quarter 2024 earnings call. The operator, Mark, introduces Stephanie Rabe, who welcomes participants and introduces key executives, Jim Cracchiolo and Walter Berman. The call includes a question-and-answer session and highlights the availability of earnings presentation materials on the company's website, emphasizing forward-looking statements and the use of non-GAAP financial measures. Reconciliations for these measures are available online, along with the risks associated with forward-looking statements. GAAP financial results for the fourth quarter are presented on Slide 3 of the materials.

In the earnings call, Jim Cracchiolo discussed Ameriprise's strong financial performance in the fourth quarter and throughout the year. The company achieved record highs in adjusted operating results, with total revenues reaching $4.5 billion, a 13% increase, and earnings at $965 million, an 18% rise. Assets under management, administration, and advisement grew to $1.5 trillion, driven by strong business growth and positive market conditions. Ameriprise's return on equity rose to 52.7%. The wealth management segment saw significant growth, with total client assets reaching $1 trillion and client inflows totaling $11.3 billion for the quarter. The company's strategy focuses on client engagement and a strong value proposition, contributing to adviser productivity and client satisfaction.

The paragraph highlights significant growth for Ameriprise, with wrap assets under management increasing by 18% to $574 billion and wrap flows reaching an all-time high. Transactional activity and adviser productivity also saw notable growth. Ameriprise's integrated technology platform and high client satisfaction are emphasized as core strengths, with consistent recognition from J.D. Power and placement in Forbes' rankings. Additionally, 90% of advisers recommend the firm as a great place to work or affiliate with, showcasing strong adviser engagement.

The paragraph highlights Ameriprise's successful recruitment of 91 experienced advisers in a typically slow quarter and growth in their banking sector with over $23 billion in balances. Their Retirement Protection Solutions and Asset Management sectors also showed strong growth, with significant sales increases in variable annuities, life, and health products. Asset Management managed $681 billion, delivering competitive investment results, with the majority of funds outperforming benchmarks over various time periods. Columbia Threadneedle funds also received high ratings from Morningstar.

The paragraph highlights Ameriprise's financial performance and strategic initiatives. The company achieved net inflows of $1.3 billion, a significant improvement from the previous year, driven by strong retail inflows and new investment capabilities such as active ETFs and model delivery businesses. Despite institutional net outflows, excluding legacy insurance partner flows, Ameriprise's assets under advisement have surpassed $35 billion. The firm has undertaken transformational work to improve efficiency and better meet client demands, particularly in EMEA. Ameriprise continues to invest in growth, including expanding its product offerings and technological capabilities while managing expenses. The firm reported strong organic growth, substantial capital returns, and share count reduction over the past five years, reinforcing its robust financial position and commitment to delivering excellent results.

The paragraph highlights Ameriprise's financial success and recognitions in 2025. The company boasts a strong return on equity (ROE) of 52.7% and has been acknowledged as one of America's Most Responsible Companies and Best Companies for 2025. Walter Berman reports an excellent quarter to conclude a strong 2024, with adjusted operating EPS increasing by 23% for the quarter and 17% for the year. Assets under management rose by 10% to $1.5 trillion, driving a 13% revenue growth. The company maintained effective cost management and a strong consolidated margin of 27%. Ameriprise generated stable free cash flow and returned a significant portion of earnings to shareholders, with $768 million returned in the quarter and $2.8 billion throughout 2024. The paragraph concludes by noting the best-in-class ROE of 53.7% and highlights strong metrics in Wealth Management.

The paragraph discusses the financial performance and growth of a company, highlighting that total client assets increased by 14% to a record $1 trillion, with strong client flows and wrap assets up 18%. Revenue per adviser reached $1 million, and total cash balances were $85.4 billion. A trend is noted where money is moving away from money market funds back into other products, offering significant growth opportunities. Wealth Management's pretax adjusted operating earnings went up by 18% to $823 million due to core business growth and strong equity markets, despite challenges like Fed rate cuts. Adjusted operating net revenues and expenses both rose by 18%, with distribution expenses increasing by 23%. G&A expenses were $438 million for the quarter, aligning with growth investments and higher activity, while margins remained strong at 29%. Asset Management also performed well, with a 29% increase in operating earnings for the quarter.

The paragraph highlights a strong financial performance driven by effective expense management and market conditions, leading to a 3% increase in total assets under management to $681 billion and a 10% rise in revenues. Operating and administrative expenses saw moderate increases, but strategic initiatives improved efficiency and customer experience, boosting annual margins to 38% from the previous year's 32%. In the Retirement & Protection Solutions segment, earnings rose by 5% due to robust interest earnings and market conditions despite increased distribution expenses. Sales in protection and variable annuity products were significant contributors. Additionally, in the Corporate segment, Long Term Care earnings were noted, reflecting changes in claims and premium rates.

The paragraph details Ameriprise's strong financial performance and strategic positioning, highlighting a robust balance sheet with $2 billion in excess capital and a well-performing, diversified investment portfolio. The company has transitioned a significant portion of its floating rate securities to fixed rate securities, enhancing stability and future financial performance. Ameriprise has consistently returned capital to shareholders and invested in growth, resulting in significant revenue and earnings per share growth in 2024, along with improved return on equity and substantial capital returns to shareholders. These growth trends have been consistent over the past five years. The performance underscores the business's complementary nature and focus on profitable growth. The paragraph transitions into a Q&A session, with Suneet Kamath from Jefferies inquiring about the decline in net interest income (NII) for the bank.

In the discussion, Walter Berman explains the bank's strategy and expectations for net interest income (NII) in 2025, suggesting it will be above 2024 levels. He highlights recent changes, such as repositioning fixed and floating elements and growing the base by $2.3 billion. These changes, along with adjustments made to client crediting rates, have positioned the bank well for future growth. However, he notes that variables like rate reductions and the spread business on certificates will impact performance. Meanwhile, Suneet Kamath discusses the current high level of client cash, which is double the historical normal, and questions whether it will decrease to traditional levels or remain elevated.

In the paragraph, Jim Cracchiolo discusses the current financial environment, noting that cash levels are higher due to elevated short-term interest rates, which provide good returns for consumers. However, as long-term rates stabilize, there may be a gradual shift of money back into the market, particularly into fixed income products. Over time, cash positions are expected to decrease, even though short-term rates remain higher than the past decade. Suneet Kamath acknowledges this information and allows the discussion to move to Brennan Hawken from UBS Financial. Brennan inquires about the stability of Net Interest Income (NII) at the bank, referencing a recent 15-basis point reduction in the crediting rate. He asks if this reduction will stabilize the yield in the first quarter or if it serves only as a partial offset.

In the paragraph, Walter Berman discusses the bank's strategy for adjusting rates and deposit management, highlighting a 100 basis point drop in the fourth quarter while maintaining growth in deposits. The bank is in a strong position with 87% fixed assets. Brennan Hawken inquires about loan growth, particularly in residential mortgages. Jim Cracchiolo responds by outlining plans to introduce new products, such as fixed pledge loans, HELOCs, CDs, and a checking account, to enhance loan growth and bank engagement, indicating confidence in expanding the bank’s lending portfolio through 2025.

In the paragraph, the discussion revolves around the firm's capital strategy and approach to inorganic growth opportunities. Jim Cracchiolo mentions that the firm maintains a steady capital redeployment through buybacks and dividend increases, supported by strong cash flow from their well-performing RPS business. When it comes to acquisitions, the market is currently seen as pricey, with private equity inflating prices, especially in the Wealth segment. Therefore, the firm is more selective, focusing on acquiring advisers who align with their client experience and advice-based solutions approach. Additionally, the firm is investing in expanding channels, specifically through opportunities in AFIG, AAC, and other direct initiatives.

The paragraph discusses the strategy and outlook for the Asset Management business amid market pressures and changes. The business is focusing on organic growth through increased efficiency, cost reduction, and transformation. They are expanding in new formats like model delivery and separately managed accounts (SMAs), which have grown significantly, and are launching more active ETFs due to a shift from passive investing, as pressure on mutual funds continues. There is also potential for increased presence in Europe, though progress will be gradual.

The paragraph discusses the company's outlook on organic growth and market conditions. Despite the industry's moderating flows in 2024, the company sees resilience in organic growth and anticipates potential acceleration in 2025 due to a strong recruiting backlog and improved market conditions. They highlight a positive flow picture, with net client inflows and contributions to wrap programs. The company attributes this optimism to post-election market stability, expectations of solid GDP growth, robust company earnings, and a favorable employment outlook. Additionally, the recruitment pipeline was strong in the fourth quarter and remains promising for the upcoming year.

The paragraph is a transcript from a discussion involving several people: Michael Anagnostakis, Walter Berman, and John Barnidge. Michael expresses appreciation for insights from Jim and asks Walter about the stability of sweep cash, to which Walter responds it has remained stable since December. John then shifts focus to Long Term Care, highlighting a benefit from premium rate increases in the quarter. He asks if this implies higher Long Term Care earnings and queries about the expected run rate, to which Walter explains that the benefit this quarter was due to claims and rate increases, emphasizing the ongoing process for benefit requests and approvals.

In the paragraph, Jim Cracchiolo discusses the positive financial trajectory of the company as it enters 2024, highlighting the $61 million generated as a positive sign. In response to a question from John Barnidge, Cracchiolo explains the growth potential of the alternative and private asset product portfolio in their Advice & Wealth Management channel, noting increased interest in private credit and alternatives among upper-market clients. He mentions that although the channel is in the early stages, there is potential for growth as advisors and clients incorporate these products into their portfolios. Wilma Burdis asks about corporate costs, noting lower-than-expected expenses and inquires about future impacts from cloud conversion and severance costs.

The paragraph involves a discussion between Jim Cracchiolo, Walter Berman, and Wilma Burdis regarding financial forecasts and expense management for a company moving into 2025. They expect to experience reductions in severance costs and technological transformation expenses in the early quarters of 2025. Additionally, they emphasize their effective management of general and administrative (G&A) expenses and highlight ongoing efforts in process improvement and investment in growth. Despite the necessary expenditures for growth, particularly in the Asset and Wealth Management (AWM) segment, they are confident in their ability to manage expenses efficiently and positively impact revenue generation.

The paragraph is an excerpt from a financial discussion involving several individuals, including Ryan Krueger from KBW and Kenneth Lee from RBC Capital Markets. Ryan Krueger asks about wrap flow trends and organic growth, noting an increase from 6% to 8% in the fourth quarter. Jim Cracchiolo responds that January's trends appear consistent, but cautions that it's hard to predict the rest of the quarter based solely on January data. Ryan also inquires about the AWM margin post-Fed rate cuts, to which Walter Berman confirms a 29% margin is a reasonable expectation. Kenneth Lee asks about bank assets and fees, suggesting they were lower than anticipated, though he was juggling calls and missed previous discussions.

In this exchange, Walter Berman discusses the portfolio allocation within the business, noting that the mix has largely remained stable with high quality assets in the 3% to 5% duration range. A significant change was the increase in fixed assets from 75% to 87% at the bank, resulting in an impact from the Fed's actions. Kenneth Lee asks about the potential for higher earnings due to elevated yields and the outlook for 2025, to which Berman responds confidently about the bank's position. However, when mistakenly addressing bank RPS instead of response (RPS), Jim Cracchiolo and Berman clarify that the fundamentals look strong, with good sales and transactional growth, indicating a solid position. The conversation then shifts to a new question from Michael Cyprys with Morgan Stanley.

In the paragraph, Jim Cracchiolo discusses Ameriprise's use of intelligent automation, robotics, and generative AI to improve efficiency across various business areas. He highlights successful implementations that have enhanced advisor productivity, client interactions, and research capabilities, particularly noting developments at their call center and in Columbia. Despite operating in a regulated industry, Ameriprise is cautiously optimistic about expanding AI deployments, facilitated by careful governance and ongoing testing and learning from these technologies. Cracchiolo also mentions the potential for faster, broader deployment in light of the recent DeepSeek announcement.

The paragraph discusses the current state of efficiencies from Generative AI, noting that while intelligent automation has shown great results from extensive testing and deployment, Generative AI has not yet achieved similar efficiencies. However, efforts to deploy Generative AI are now underway. The conversation is part of a conference call, which is concluded by the operator.

This summary was generated with AI and may contain some inaccuracies.