Ameriprise Financial, Inc.

On slide 2, you will see a discussion of forward-looking statements. Specifically during the call, you will hear references to various non-GAAP financial measures, which we believe provide insight into the company's operations. Reconciliation of non-GAAP numbers to their respective GAAP numbers can be found in today's materials and on our website at www.ir.ameriprise.com. Some statements that we make on this call may be forward looking, reflecting management's expectations about future events and overall operating plans and performance. These forward looking statements speak only as of today's date and involve a number of risks and uncertainties. A sample list of factors and risks that could cause actual results to be materially different from forward looking statements can be found in our third quarter 2025 earnings release our 2024 annual report to shareholders, and our 2024 10-K report. We make no obligation to publicly update or revise these forward-looking statements. On slide three, you see our GAAP financial results at the top of the page for the third quarter. Below that, you'll see our adjusted operating results, followed by operating results excluding unlocking. which management believes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitates a more meaningful trend analysis. We completed our annual unlocking in the third quarter. Many of the comments that management makes on today's call will focus on adjusted operating results and adjusted operating results excluding unlocking. And with that, I'll turn it over to Jim.

Good morning, everyone, and thanks for joining our call. I'll begin with my perspective on the business, and Walter will follow with more detail on our third quarter metrics and financials. As you saw in our release, Ameriprise delivered another strong quarter and generated significant value as we built on our performance from the first half of the year. Regarding the operating environment, clearly it remains fluid. We've continued to see strong bull markets, but investors still have many variables to navigate. Inflation remains elevated. In terms of interest rates, the Fed announced yesterday that they cut rates by another quarter point. Meanwhile, there are signs of softening in the labor market, along with lingering questions around tariffs and ongoing geopolitical impacts. And our business continues to demonstrate both its relevance and resilience in that regard. In a dynamic landscape, Ameriprise consistently generates strong results driven by a diversified business and disciplined management. And our third quarter financials, excluding unlocking, reflect this momentum. Assets under management, administration, and advisement grew to a new high of $1.7 trillion, up 8% year over year. We continued to deliver strong earnings and also generated double-digit EPS growth of 12%. And our firm-wide margin of 27% is exceptionally strong as we continue to invest significantly in the business. I would also highlight that the Ameriprise ROE is best in class year after year and one of the highest in financial services at nearly 53%. In fact, Ameriprise is well positioned even if the environment becomes more challenging. Our complementary mix of revenue streams, effective expense management, and strong margins help enable us to sustain strong financial performance. Regarding the overall business, we're driving nice progress across many areas. Our advisors are leveraging our proven advice value proposition and generating high client value, satisfaction, and practice growth. Overall, we have continued strong AWM client asset growth up 11%. WRAP assets were also up nicely, up 14% year over year. And our advisor count is up, and advisor productivity continues to be very strong, increasing another 10%. and we're back to strong recruiting levels, bringing in 90 experienced advisors in the quarter, one of our best. The Ameriprise value proposition, as well as the strength and stability of the firm, continue to differentiate us in the recruiting space, and our pipeline in the fourth quarter is strong. Across the business, we're leveraging our investments to further elevate our value proposition and drive long-term economic returns. In September, we launched a new advertising that reinforces our premium brand, and helps create strong awareness among our target market. And we continue to invest in advanced capabilities that empower our advisors to further engage clients and deepen relationships. Our digital and AI investments are creating strong experiences and streamlining workflows. In fact, we're seeing record digital adoption from our clients and our mobile app satisfaction hit an all-time high in the quarter. And our Advice Insights is a next-generation capability that uses big data and machine learning to create client-centric insights to drive engagement, save time, and support business growth. We're also investing to enhance our comprehensive solution suite, both to broaden our offering and position the business for sustainable growth. Over the summer and into the fall, we've been working closely with advisors to integrate new capabilities. As an example, the launch of our signature wealth platform has proven to be quite successful. It's early, but it's already helping advisors track new assets and manage client portfolios more efficiently, and it has great potential. At the bank, we recently launched Helox and also began a soft launch of our checking accounts with a full rollout plan for later this year. These solutions add to our suite of savings and lending products, including CDs, mortgages, pledge lending, and credit cards. They also help to enhance our client experience and deepen relationships. We're also growing our AFIG business, partnering banks and credit unions who can benefit from our sophisticated wealth management solutions and advisor support tailored to institutional clients. And we continue to add new financial institutions to have a strong pipeline into the year end in 2026. At RPS, performance remains strong, driven by demand for annuities and insurance solutions that align with our clients' financial planning goals. We're seeing solid interest in variable universal lives, structured annuities, and variable annuities without living benefits, highlighting the relevance of our offering in today's market. We're also pursuing growth in our disability insurance business, including streamlining with an approval process for clients applying for life insurance. In addition, we're using data analytics in our digital insurance underwriting, and I'll reinforce that we built one of the most profitable insurance businesses in the industry. In asset management, we continue to make good progress as well as enhancements through the business. Our investment performance remains strong over all time periods. Over 65% of our funds outperform the medium on an asset-weighted basis for a one-year period, more than 70% for the three- and five-year periods, and over 80% for the 10-year. And we maintain a good asset base with assets under management administration up to $714 billion. In addition, net outflows improved across the board from last quarter as redemption slowed in both retail and institutional, and we had an increase in retail growth sales, particularly in North America. As I shared, we're investing and adding to our solutions in high-demand areas where we differentiate our capabilities. We're also using data and analytics to better target and segment advisors, and we're gaining traction with SMAs and models as well as our alt business and active ETFs in the U.S., In addition, we'll soon be launching our active ETF capability in the UK and Europe. Regarding institutional, we also had an improvement in flows in the quarter. Looking forward, we'll continue to manage expenses effectively in asset management with the ability to generate good margins and profitability. And that applies across Ameriprise as we continue to drive transformation and operational efficiency. What's clear? Our disciplined approach delivers results, and that's evident in our strong margins. And our digital transformation is not only enhancing the client advisor experience, it is also reducing costs and positioning us for sustainable growth. We're also enhancing our global operating platform for asset management. A recent example is the announcement of our expanded partnership with State Street, establishing a unified global back office for many Columbia Threadneedle funds. These initiatives further strengthen profitability and our ability to reinvest in innovation and growth. As you know, we manage the business with rigor and consistency. Ameriprise consistently delivers profitable growth, robust free cash flow, and a strong return. In fact, the return on capital remains exceptional, supported by healthy dividends and robust share repurchases. That includes a capital return in the quarter that we increased to $842 million. Our financial strength and stability enables us to reinvest strategically and act opportunistically. We believe that what also sets Ameriprise apart are our relationships and consistent recognition we earn for how we operate. Core to our success is how our clients feel. We consistently earn top client satisfaction. It continues to be an exception of 4.9 out of 5. And our advisors are also very engaged in being selected for top awards. In fact, we had 20 Ameriprise advisors on the Barron's Top 100 Independent Financial Advisors list for 2025. Also key, our employee engagement consistently best in class across industries, as confirmed by our latest internal survey results received in the third quarter. And J.D. Powell once again recognized Ameriprise with their outstanding customer service certification for our phone support for the seventh consecutive year for advisors and the second year for clients, which is tremendous. In addition, Forbes named Ameriprise one of America's best companies. Newsweek honored us as one of America's most responsible companies. Fortune listed Ameriprise among America's most innovative companies. And I also highlight that Newsweek recently ranked us as one of America's greatest companies. In closing, I feel very good about Ameriprise and the totality of the firm. Earlier this month, we officially marked 20 years of independence and our listing on the New York Stock Exchange. Over the last two decades, Ameriprise has built an exceptional track record for achieving high client satisfaction and industry-leading results guided by a proven strategy and management principles. And that includes generating the number one total shareholder return within the S&P 500 financials index since our spinoff in 2005. As I look ahead, Ameriprise is well positioned and represents attractive value at these levels, regardless of market momentum. With that, I'll turn it over to Walter for his perspective, and then we'll take your questions.

Thank you, Jim. Ameriprise delivered another quarter of solid performance underpinned by exceptional balance sheet strength. Our focus on sustainable profitable growth continues to serve us well in delivering consistently strong financial results and client satisfaction demonstrated by adjusted operating EPS excluding unlocking up 12% to $9.92 with a strong margin of 27% across the firm. Adjusted operating net revenues excluding unlocking increased 6% to $4.6 billion driven by asset growth. Expense discipline remains strong from our ongoing firm-wide transformation initiatives. In the quarter, G&A expenses improved 3%. It was another solid quarter driven by the sustained benefit from the leverage within our integrated business model. Our stable 90% free cash flow generation across our segments combined with the foundation of strong balance sheet and enterprise risk management capabilities enabled us to increase our capital return to 87% of operating earnings in the quarter. We remain committed to returning capital to shareholders at a differentiated pace and are targeting an 85% payout ratio for the fourth quarter based upon our share price and substantial free cash flow. On slide six, you'll see EPS growth of 12% demonstrating the strength and leverage across our businesses. Assets under management, administration, and advisement increased 8% to a record high of $1.7 trillion. We delivered strong firm-wide margins from 6% revenue growth while reducing G&A expenses by 3%. On a full-year basis, we are targeting a G&A decline of 3%. We continue to generate a best-in-class return on equity of 53%. Let's turn to slide 7. Underlying performance metrics and wealth management remain strong across all measures. Client assets grew nicely to a record $1.1 trillion, with $29 billion of flows over the past year. RAP assets were up 14% to $650 billion, with RAP flows of $30 billion over the past year. In the quarter, client and RAP flows were impacted by the departure of two large advisor teams, Excluding those departures, client flows were solid at $6.5 billion and RAP flows were $8 billion when it also adjusted for admin administrative change. The flows from our legacy advisor and client base have been consistent. In addition, transactional activity levels remain strong, near record levels reflecting the full scope of our planning model. Cash suite balances were stable at $27.1 billion compared to $27.4 billion in the prior quarter. We are also seeing strong momentum in our experienced advisor recruiting, with 90 advisors joining Ameriprise this quarter. Our value proposition is resonating with advisors, and we remain focused on ensuring our transition packages are attractive to experienced advisors that share our values and commitment to the client experience. And more importantly, advisor productivity grew 10% to a new high of $1.1 million. Let's turn to wealth management financial results on slide 8. Adjusted operating net revenues increased 9% to $3 billion. The core business is performing very well. Our fee-based and transactional revenues were quite strong, increasing in the low team percentage range, benefiting from higher client assets and activity levels. Our cash revenues, which include net investment income, distribution fees related to off-balance sheet cash, and banking and deposit interest expense, were impacted by the Fed Fund's rate reduction over the past year and decline in the mid-single-digit range, as you would expect. Adjusted operating expenses in the quarter increased 10%. In the quarter, distribution expenses increased 11%. I would note that advisor compensation within distribution expenses increased in line with the revenues advisors generated. G&A expenses increased 5% to $439 million in the quarter. primarily driven by volume and growth-related expenses, including investments in signature wealth and banking products. Expenses remain well managed for the full year. We continue to expect low to mid single-digit growth in G&A. Pre-tax adjusted operating earnings increased 7% to $881 million. We saw continued strong contributions from both core and cash earnings in the quarter. Our core earnings grew in the high team percentage range, benefiting from higher asset levels, strong transactional activity, and well-controlled G&A. The strong level of core earnings that we generated is unique and demonstrates our focus on profitable growth. Cash earnings had a mid-single-digit percentage decline as expected from rates. Our strategy of leveraging Ameriprise Bank has been important in minimizing the impact from Fed Fund's effective rate reductions on our awm business in fact net investment income in the bank was flat this quarter we continue to take actions to build the bank investment portfolio in a way that supports stable earnings contributions going forward the overall bank portfolio has a yield of 4.6 percent with a 3.7 year duration in the quarter new purchases at the bank were nearly 700 million at a yield of 5.3% with a 4.4-year duration. Last, our margins remained excellent at 29.5%. Turning to asset management on slide 9, financial results were solid in the quarter. Operating earnings increased 6% to $260 million. This strong quarter reflected equity market appreciation and the positive impact from expense management actions partially offset by the impact of net outflows. Total assets under management and advisement increased to $714 billion, up both year-over-year and sequentially from higher-ending market levels. Net outflows significantly improved on a sequential basis to $3.4 billion, with improvement in both retail and institutional. Retail flows benefited from higher gross sales, which included a nice win in model delivery. Institutional flows benefit primarily from lower redemptions in both the U.S. and EMEA. Revenues increased 3% to $906 million with a stable fee rate at 46 basis points. G&A expenses increased 1%. For the full year, we expect mid-single-digit G&A expense decline, excluding performance fees. Margin reached 42% in the quarter, which is above our target range, driven by favorable markets and continued expense discipline. Let's turn to slide 10. Retirement and protection solutions continue to deliver strong earnings and free cash flow generation, reflecting the higher quality of the businesses that was built over a long period of time. Pre-tax adjusted operating earnings, excluding unlocking in the quarter, were 200 million, in line with our expectations. The strong and consistent performance of the business reflects the benefit from strong interest earnings and higher equity markets. Overall, retirement protection solutions sales were solid at $1.4 billion, with a continued demand for structured variable annuities. These high-quality books of business continue to generate strong free cash flow with excellent risk-adjusted returns and continue to be an important contributor to the diversified business model. The company completed its annual actuarial assumption update in the quarter. which resulted in an unfavorable after-tax impact of $5 million. In retirement protection solutions, there was a favorable insurance model change, which was partially offset by unfavorable changes to variable annuity surrender and utilization assumptions. In long-term care, there was an immaterial impact from changes to morbidity and mortality assumptions. Overall, LTC policyholder behavior is in line with expectations. Before we move to the balance sheet, I'd like to take a moment to address the corporate segment. The pre-tax operating loss to Scudi Unlocking was $93 million, which was a significant improvement from a year ago due to lower severance and cloud migration expense, as well as favorable share-based compensation expense. Turning to balance sheet on slide 11, balance sheet fundamentals and free cash flow generation remain strong. We have an excellent excess capital position of $2.2 billion, We have 2.5 billion of available liquidity and our investment portfolio is diversified and high quality. We have diversified source of dividends from all our businesses enabled by strong underlying fundamentals. This supports our ability to consistently return capital to shareholders and invest for future business growth. Ameriprise's consistent capital return strategy is a key element of our ability to consistently generate strong long-term shareholder value. In summary, On slide 12, Ameriprise delivered solid results in the third quarter, which is a continuation of a long track record navigating various market environments over the longer term. Over the last 12 months, revenues grew 7%, adjusted EPS increased 12%, return on equity grew 210 basis points, and we returned 3.1 billion of capital to shareholders. We had similar growth trends over the past five years, with 9% compounded annual revenue growth, 18% compounded annual EPS growth, return on equity improving 17 percentage points, and we returned $13 billion of capital to shareholders. These trends are consistent over the long term as well. This differentiated performance across multiple cycles speaks to the complementary nature of our business mix, as well as our consistent focus on proper growth and maintaining our strong values as a company. With that, we'll take your questions.