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$AMP General Update: Ameriprise Study: Generation X confident they're saving, investing enough for retirement. Overwhelming majority of Gen Xers started saving and investing early, health, wealth and work are top priorities heading into retirement.
$AMP 1Q17 earnings rose 11% YoY, helped by strong net revenue growth. Net earnings rose to $403MM from $364MM during 1Q16. Diluted EPS rose 22% to $2.52 from $2.09 during 1Q16. Revenue was $2.9Bil. up 5%. Operating EPS rose 24% to $2.70 .
$AMP's revenue for 4Q16 declined 1% from last year. The decrease in revenue related to the deconsolidation of certain collateralized loan obligations and property funds was offset by the increase in the market impact of hedges on investments.
$AMP offers a wide range of products, including investment products and mutual funds, on its platform. The company is making sure that its products go through a level of due diligence and screening from a research perspective to make sure they are appropriate from a pricing and durability perspective for the clients.
In the Advice & Wealth Management segment, $AMP’s retail client assets grew 10% during 3Q16. Operating earnings were $231MM, up 5% from 3Q15. In Annuities, variable annuities account balances were up about 4% YoverY. In Asset Management, assets under management declined slightly to $468Bil in 3Q16.
$AMP said in 3Q16, total assets under management and administration rose to $796Bil. Return on equity, excluding unlocking and accumulated other comprehensive income (AOCI), was 23.8%. For 3Q16, $AMP returned more than $500MM to shareholders through share repurchases and dividends, bringing the total return for 2016 thus far to more than $1.6Bil.
$AMP's net cash provided by operating activities for 1Q16 decreased to $621MM from $913MM in the previous year quarter, while net cash provided by investing activities fell to $2MM from $182MM last year. Net cash used in financing activities decreased to $319MM from $905MM in the prior year quarter.
$AMP's pretax income for 1Q16 fell by 23% from last year, primarily due to fall in pretax income from CIEs, unfavorable market impact of hedges on investments, asset management net outflows, market depreciation, lower transactional volume, higher catastrophe losses, and impact on DAC and DSIC from actual versus expected market performance.
$AMP's total asset under management, or AUM, fell by 6% to $623.6Bil as of March 31, 2016 from $663.9Bil as of March 31, 2015 reflecting a $42.2Bil drop in Asset Management AUM on market depreciation, net outflows and negative impact of foreign currency translation, and $2.9Bil rise in Advice & Wealth Management AUM on wrap account net inflows.
$AMP's asset management group Columbia Threadneedle Investments announced an agreement for Columbia Management Investment Advisers to buy Emerging Global Advisors. The purchase will significantly expand smart beta capabilities of Columbia Threadneedle. Terms of EGA acquisition were not disclosed. The deal is expected to close later this year.
$AMP said that macro conditions impacted revenue in a few ways. The company's weighted equity index, the proxy for equity market movements on AUM declined 8% on average YoverY and 6% on average sequentially. This affected average AUM and thereby fees which was collected based upon average daily assets.
$AMP said that within Protection segment, in Life and Health, the company's UL products have been become a larger portion of the balance book with UL. Claims experience in 1Q16 was within expectations. In Auto & Home, the company is making good progress as it enhances the pricing, underwriting and claims management.
Financial services company $AMP said that 1Q16 revenue was down 4% to $2.8Bil and EPS was relative flat at $2.17. The company's ROE excluding AOCI is strong at 24.2%, up 110 BP from 1Q15. During 1Q16, the company said that it nearly doubled the number of shares it repurchased from a year ago to 5.1MM.