Loading blog posts...
August 5, 2025 • 3 min read
Ameriprise Financial recently released its second-quarter 2025 financial results, and a deep dive into its 10-Q filing reveals a story of solid growth, particularly in its core wealth management business, coupled with favorable market movements. Let's break down the key numbers to understand what's driving the company's performance.
For those unfamiliar, Ameriprise Financial (AMP) is a major player in the U.S. financial services industry, offering a suite of products focused on wealth management, asset management, and retirement and protection solutions like insurance and annuities.
Ameriprise posted an impressive net income of $1.06 billion for the second quarter of 2025, a significant 28% increase from the $829 million reported in the same period last year. This translated to diluted earnings per share (EPS) of $10.73, up sharply from $8.02 in Q2 2024.
Total net revenues climbed a modest 4% to $4.4 billion. So, what fueled the outsized jump in profitability? A look at the company's expenses reveals a key driver: a massive positive swing in the "Change in fair value of market risk benefits." This line item, which reflects changes in the value of guarantees on annuity products, shifted from a $110 million expense last year to a $10 million gain this quarter. This $120 million swing, largely tied to market performance and hedging, provided a significant boost to the company's pretax income.
To visualize how Ameriprise generates its profits, this flow diagram breaks down the company's income statement from revenues to net income for the first half of 2025.
Please log in to view diagrams.
Ameriprise operates through four main segments. Here’s a quick look at how each performed on an adjusted operating basis, which smooths out certain market-driven fluctuations.
Advice & Wealth Management: As the company's largest and most crucial division, it continues to perform well. Net revenues grew 6% to $2.8 billion, driven by an 11% increase in management and financial advice fees. This growth reflects strong client asset levels, which rose 11% year-over-year to $1.1 trillion, thanks to both market appreciation and steady client net inflows. However, adjusted operating earnings dipped slightly to $812 million from $822 million, as a 10% rise in distribution expenses offset revenue gains.
Asset Management: This segment, which operates globally under the Columbia Threadneedle Investments brand, saw adjusted operating earnings increase by 2% to $222 million. While total assets under management grew a modest 2% to $654 billion, the segment continues to face net outflows.
Retirement & Protection Solutions: This division delivered a solid 9% increase in adjusted operating earnings, reaching $214 million. The growth was primarily fueled by a 16% jump in net investment income, a positive sign for its insurance and annuity portfolios.
Ameriprise Financial's Q2 2025 performance showcases the strength of its wealth management franchise and the positive impact of favorable market conditions. The substantial growth in client assets is a strong indicator of future fee-generating potential.
However, the results also highlight the company's sensitivity to market fluctuations, as seen in the significant swing from market risk benefits. While rising distribution costs in the wealth management segment warrant attention, the overall financial picture appears robust. For investors, Ameriprise's performance remains closely linked to the health of the global equity and credit markets.
Last updated: August 5, 2025