Ameriprise Financial (AMP) has posted a net income of $322m, or $1.54 per diluted share, with an increase of 44% and 56%, respectively, compared to $224m, or $0.99 per diluted share, during the comparable period last fiscal.
Operating earnings for the quarter ended on 30 June 2013, stood at $352m, or $1.69 per diluted share, against $254m, or $1.13 per diluted share, during the corresponding period earlier year.
Operating net revenues rose by 9% to $2.7bn, mainly backed by healthy client net inflows, better client activity and market appreciation, partially offset by the decline in net investment income from low interest rates.
Operating expenses increased by 6% to $2.3bn, primarily reflecting higher distribution costs from business growth.
During the current quarter, its variable annuity cash sales increased by 20%, while life and health insurance cash sales grew by 32% from a year ago, reflecting solid indexed universal life insurance sales and expanded variable universal life insurance sales.
Advice & wealth management segment pretax operating earnings grew by 37% to $152m, compared to $111m during the year ago quarter, reflecting robust revenue growth and expense controls.
Asset management pretax operating earnings stood at $199m, up by 53% from $130m during the same period of second quarter of 2012.
Annuities pretax operating earnings increased by 7% to $124m, compared to $116m during the same period earlier year. The result was due to new business growth and market appreciation partially offset by fixed annuity spread compression and the unfavorable market impact on DAC and DSIC.