Analyst Note| Michael Wong, CFA, CPA |
Ameriprise continued to report strong core results in the third quarter. The company reported net income of $1.03 billion, or $8.65 per diluted share, on $2.9 billion of net revenue for the third quarter of 2021. On a company-provided, adjusted operating basis that excludes the effect of changes in interest rates on some of its products and a $521 million gain from a reinsurance transaction, the company reported pro forma operating earnings per share of $5.91, up 38% from the previous year. Adjusted operating return on equity excluding accumulated other comprehensive income was a strong 47.9% in the quarter. We don’t anticipate making a material change to our $236 fair value estimate for narrow-moat Ameriprise Financial.