아메리프라이즈 파이낸셜(AMP) 2026년 3분기 실적 발표회: EPS 22% 증가, ROE 56% 돌파

핵심 요약

• 아메리프라이즈 파이낸셜(Ameriprise Financial)은 언락킹(unlocking) 효과를 제외한 조정 영업 순매출이 전년 동기 대비 10% 증가한 51억 달러를 기록했다고 발표했습니다. 조정 영업이익은 14% 증가했으며, 조정 주당순이익(EPS)은 22% 늘었습니다.
• 총 운용·수탁·자문 자산(AUM)은 8% 증가한 1조 8,000억 달러에 달했습니다. 언락킹 효과를 제외한 자기자본이익률(ROE)은 전년 동기의 52.8%에서 상승해 56%를 초과했습니다.
• 자문 및 자산관리(Advice & Wealth Management) 부문은 13% 증가한 34억 달러의 조정 영업 순매출과 29%의 이익률을 기록했습니다. 어드바이저 1인당 매출은 13% 증가해 사상 최대치인 120만 달러를 기록했습니다.
• 자산운용(Asset Management) 부문의 세전 조정 영업이익은 18% 증가한 3억 800만 달러를 기록했으며, 이익률은 46%에 달했습니다. 다만 기존 보험 자금 흐름을 제외한 순유출은 주로 대형 기관의 위탁 자산 재배분으로 인해 84억 달러를 기록했습니다.
• 아메리프라이즈는 이번 분기 영업이익의 93%에 해당하는 10억 달러의 자본을 주주에게 환원했습니다. 이사회는 2028년 9월 30일까지 실행되는 55억 달러 규모의 신규 자사주 매입 프로그램을 승인했습니다.
• 경영진은 정상적인 시장 상황에서 자산관리 부문 이익률이 29% 수준을 유지할 것으로 예상하며, 기초 사업 체력이 지속적인 수익성 성장을 뒷받침하고 있다고 밝혔습니다.

주요 재무 데이터

사업 및 영업 실적

자문 및 자산관리

조정 영업 순매출은 13% 증가한 34억 달러를 기록했습니다. 수수료 기반 및 거래 기반 매출은 고객 자산 및 활동 증가에 힘입어 15% 늘었습니다. 거래 활동은 주로 연금 판매 및 브로커리지 거래 증가를 반영하며 6% 증가했습니다.

세전 조정 영업이익은 12% 증가한 9억 8,900만 달러를 기록했습니다. 핵심 이익은 20% 이상 성장했으나, 현금 이익은 은행 성장이 증서(certificate) 잔액 감소 및 단기 금리 하락 효과를 상쇄하면서 보합세를 보였습니다.

총 고객 자산은 8% 증가한 1조 2,000억 달러를 기록했으며, 랩(wrap) 자산은 12% 증가한 7,290억 달러를 기록했습니다. 코메리카(Comerica)를 제외하면 고객 순유입은 56% 증가한 53억 달러, 랩 순유입은 38% 증가한 66억 달러를 나타냈습니다. 자체(organic) 유입 비율은 4% 수준을 유지했습니다.

어드바이저 생산성은 13% 증가해 어드바이저 1인당 매출 120만 달러라는 사상 최대치를 기록했습니다. 아메리프라이즈는 이번 분기에 79명의 경력 어드바이저를 영입했으며, 경영진은 근속 연수 10년 이상 어드바이저의 유지율이 90%대 후반을 유지했다고 밝혔습니다.

아메리프라이즈는 10월 19일 280억 달러의 고객 자산을 보유한 헌팅턴 은행(Huntington Bank) 어드바이저 약 260명의 이전을 완료했습니다. 헌팅턴의 케이던스 은행(Cadence Bank) 인수에 따라, 회사는 2027년 중반에 29명의 어드바이저와 40억 달러의 자산을 추가로 확보할 것으로 예상합니다.

은행 관련 영업도 확대되었습니다. 담보 대출은 50% 이상 증가했고, 주택담보대출 포트폴리오는 74% 성장했습니다. 총 고객 현금은 주로 제3자 머니마켓펀드(MMF) 및 코메리카 이전에 따라 전년 동기 대비 5% 감소한 810억 달러를 기록했습니다. 경영진은 기초 현금 스윕(sweep) 잔액이 안정적으로 유지되었다고 밝혔습니다.

자산운용

총 운용 및 자문 자산은 4% 증가한 7,430억 달러를 기록했습니다. 매출은 9% 증가한 9억 9,000만 달러를 기록한 반면, 기초 수수료율은 약 48bp를 유지했습니다. 세전 조정 영업이익은 18% 증가한 3억 800만 달러를 기록하며 46%의 이익률을 달성했습니다.

기존 보험 자금 흐름을 제외한 순유출은 총 84억 달러로, 주로 고객의 자산 배분 결정에 영향을 받은 몇몇 대형 기관 위탁 자산 때문이었습니다. 경영진은 주식 부문의 리테일 자금 흐름이 미국 동종업계 대비 우수한 수준을 이어갔으나, 채권 부문은 개선이 필요한 영역으로 남아있다고 설명했습니다.

회사는 액티브 ETF, 일임계좌(SMA) 및 모델 포트폴리오의 확장을 이어갔습니다. 또한 2개의 프리미엄 주식형 수익 전략을 출시했으며, 초기에는 상장·비상장 성장주 인터벌 펀드에 집중하는 해밀턴 레인(Hamilton Lane)과의 협업을 발표했습니다.

퇴직 및 보장 솔루션

언락킹을 제외한 세전 조정 영업이익은 1억 9,800만 달러를 기록했습니다. 시장 가치 상승과 호의적인 생명보험 손해율은 변동 연금 유출과 구조화 연금 판매 관련 유통 비용 증가로 인해 일부 상쇄되었습니다.

매출은 구조화 변동 연금, 보장 특약이 없는 변동 연금, 변동 유니버설 생명보험 상품에 힘입어 24% 증가했습니다. 경영진은 또한 신규 자금 수익률 상승이 향후 지속적인 투자 스프레드를 뒷받침할 것이라고 말했습니다.

기술 및 AI

아메리프라이즈는 현재의 기술 및 AI 기능을 활용하는 자문 사무소가 주당 30시간 이상의 추가 업무 용량을 창출할 수 있다고 밝혔습니다. 자문 사무소의 약 4분의 3이 AI가 생성한 고객 인사이트를 활용하고 있습니다.

회사는 AI 기반 회의 준비 에이전트와 AI 서비스 어시스턴트의 조기 버전을 출시했습니다. 경영진은 2027년에 더 광범위한 데이터 통합과 자동화된 가이드 워크플로우를 구현할 계획입니다.

경영진 가이던스

• 자산관리 부문의 연간 일반관리비는 여전히 한 자릿수 중반의 비율로 증가할 것으로 예상됩니다.
• 경영진은 정상적인 시장 상황을 전제로 자산관리 부문 이익률이 29% 수준을 유지할 것으로 예상합니다.
• 자산운용 부문의 연간 일반관리비는 셀리그먼(Seligman) 및 기타 성과 보수를 제외하면 보합세를 유지할 것으로 예상됩니다.
• 경영진은 기관 자금 흐름이 개선될 것으로 예상하는 한편, 최근의 대규모 재배분으로 인해 단기 가시성이 낮아졌음을 인정했습니다.
• 회사는 추가적인 데이터 통합 및 자동화된 워크플로우를 통해 2027년에 AI 기능을 확장할 계획입니다.

리스크 및 주요 관전 포인트

• 경영진은 시장 변동성, 지속되는 인플레이션, 고금리, 지정학적 불안을 언급하며 영업 환경이 긍정적이지만 불확실하다고 평가했습니다.
• 자산운용 부문은 기관의 자산 재배분, 기존 뮤추얼 펀드, 특정 폐쇄형 블록(closed block) 및 채권 유입 약세로 인한 압박을 계속 받고 있습니다.
• 어드바이저 영입 경쟁은 여전히 치열합니다. 경영진은 업계의 일부 제안이 7~8년의 현금 회수 기간을 요구하는 것으로 보이지만, 아메리프라이즈는 선별적이고 수익률에 집중하는 접근 방식을 유지할 의도라고 말했습니다.
• 총 고객 현금은 전년 동기 대비 5% 감소했으나, 경영진은 이러한 감소의 일부를 코메리카 이전에 따른 것으로 설명하고 스윕 잔액은 안정적이었다고 말했습니다.
• 연례 계리적 가정 업데이트로 인해 7,400만 달러의 비호의적인 세후 영향이 발생했으나, 경영진은 계약자 행동이 예상 범위 내에 유지되었다고 밝혔습니다.

애널리스트 Q&A 하이라이트

어드바이저 유지 및 영입: 경영진은 아메리프라이즈가 광범위한 유지 프로그램을 도입했다는 보도를 일축했습니다. 경영진은 어드바이저 계약 조건이 개별적으로 평가되며 승계, 사무소 인수, 유동성 요구 또는 복잡한 팀 지원에 활용될 수 있다고 밝혔습니다. 회사는 획일적인 현금 기반 접근 방식 대신 자체 성장, 어드바이저 생산성 및 규율 있는 경제성을 강조했습니다.

금융기관 파트너십: 경영진은 헌팅턴 거래를 업계 동종 계약 중 최대 규모 중 하나로 평가하며 성공적인 이전을 통해 추가적인 은행 채널 파트너십을 지원할 수 있다고 밝혔습니다. 아메리프라이즈는 이미 다른 기관들과 논의를 진행 중이며 플랫폼을 확장할 수 있는 여력을 갖추고 있습니다.

코메리카 관련 자금 흐름: 경영진은 관련 초기 자산 기반이 약 190억 달러였음을 확인했으며, 향후 소액 자금이 이탈할 가능성은 있지만 관련 유출의 대부분은 이미 발생했다고 말했습니다.

자산관리 현금 및 이익률: 경영진은 계절적 현금 이동과 코메리카 이전이 보고된 잔액에 영향을 미쳤다고 말했습니다. 경영진은 자산관리 이익률이 29% 수준에서 안정적으로 유지될 것으로 예상하며, 현재 가정 하에 고객 현금으로부터 창출되는 수익 구조가 악화되지는 않을 것으로 전망합니다.

자사주 매입: 회사는 분기 자사주 매입 규모 확대가 자본 관리 전략의 변화라기보다는 기회주의적인 조치였다고 설명했습니다. 아메리프라이즈는 올해 들어 현재까지 평균 491달러의 가격에 490만 주를 매입했으며, 이는 2025년 동기의 평균 508달러에 370만 주를 매입했던 것과 비교됩니다.

실적발표 콘퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Welcome to the Q3 2026 earnings call. My name is [ Connor, ] and I will be your operator for today's call. [Operator Instructions] As a reminder, this conference is being recorded.

I will now turn the call over to Stephanie Rabe. Stephanie, you may begin.

Stephanie Rabe

Welcome to Ameriprise Financial's Third Quarter Earnings Call. On the call with me today are Jim Cracchiolo, Chairman and CEO; and Walter Berman, Chief Financial Officer. Following their remarks, we'd be happy to take your questions. Turning to our earnings presentation materials that are available on our website. On Slide 2, you'll see a discussion of forward-looking statements. Specifically, during the call, you'll 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 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 2026 earnings release, our 2025 annual report to shareholders and our 2025 10-K report. We make no obligation to publicly update or revise these forward-looking statements.

On Slide 3, 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 the call today will focus on adjusted operating results and adjusted operating results excluding unlocking.

And with that, I'll turn it over to Jim.

Jim Cracchiolo

Good morning, everyone, and thanks for joining us today. Ameriprise had a strong third quarter. Our results reflect the quality of our business and the value we bring to clients and advisers. We're performing well in an environment that remains positive but uncertain. In the quarter, equity markets advanced despite periods of volatility, persistent inflation, higher interest rates and geopolitical unrest. Clients want to work with an adviser and a firm they can trust with the advice, investment expertise and solutions to fully serve their needs. That matters even more when conditions are complex.

For the quarter, total assets under management, administration and advisement reached $1.8 trillion, up 8%, and the financial results we generate continue to be very strong, excluding unlocking on an adjusted operating basis, our net revenues increased 10% to $5.1 billion, supported by higher asset levels and transactional activity with earnings per share increasing 22% and continuing our consistent record of earnings growth over time. This resulted in our best-in-class return on equity, which rose to over 56% from 52.8% a year ago reflecting our differentiated economics. We're helping clients achieve their goals, growing earnings and investing in the business, all while returning substantial capital to shareholders.

Let's turn to the business and our progress in the quarter. Our wealth management business is high quality and high returning. Client satisfaction continues to be excellent at 4.9 out of 5, reflecting the value of the advice and experience our advisers deliver. Information is everywhere. What makes the difference is the personal engagement and judgment our advisers bring, understanding each client's goals and putting their right solutions into action. That's what drives satisfaction, and that's our sweet spot. As investors seek help with important financial decisions, our advisers are well positioned. Our continued investment and support translated into more successful adviser practices and have helped Ameriprise advisers grow faster than competitors for many years.

Strong organic growth led to adviser productivity increasing another 13% and to a record $1.2 million per adviser. Total client assets increased 8% to $1.2 trillion. Wrap assets reached $729 billion, up 12%. The continued growth in assets reinforces the durability of our fee-based earnings. Our investment and banking capabilities give us more ways to meet clients' needs and deepen relationships that drive long-term growth. To that end, Signature Wealth continued to gain traction in the quarter with more than half of our advisers now using it for clients. It gives clients access to institutional quality, investment management and helps advisers serve them more efficiently and we continue to add features and investment choices, greater adoption can support asset growth across both wealth management and asset management.

Our bank helps us meet clients' broader financial needs and brings assets to Ameriprise. More advisers are incorporating deposit and lending solutions in their practices. As an example, pledge lending increased more than 50% and our mortgage portfolio grew 74%. Cash balances remain stable, consistent with how our clients and advisers utilize our cash offerings and transactional activities continue to increase. Also in the quarter, we recruited another 79 experienced advisers to Ameriprise. They're attracted to our culture and advice-based approach and advisers who join us tell us our support is superior to where they came from, in particular, our integrated technology.

Our recruiting momentum continues in a highly competitive market. There will always be adviser movement and noise in this industry, particularly as people compete very aggressively for business and publicity, and our retention remains very high. Every adviser's practice is different. We bring the strength of Ameriprise to each relationship to support growth, create value for clients, advisers and the firm. That brings us to our recent win and financial institutions. Earlier this month, we welcomed approximately 260 Huntington Bank advisers with $28 billion in client assets, our largest AFIG deal and 1 of the industry's most significant partnerships of its kind. This relationship expands our presence in the bank channel and demonstrates the competitiveness of our business. Huntington advisers now have our integrated technology planning capabilities and investment solutions to deepen client relationships and grow assets.

And with Huntington's recent acquisition of Cadence Bank, we'll add another 29 advisers and $4 billion in assets moving from another program to us in mid-2027. These partnerships, along with our adviser productivity growth reflect the strength of what Ameriprise office from a client and adviser perspective. And we see more opportunities ahead to help advisers grow with our premium brand into greater technology and support. Following our full ad campaign, brand awareness among our target audience has reached an all-time high. The Ameriprise brand rates very well with affluent and high net worth investors alongside other leading brands serving this target market. This recognition together with our credentials helps attract new clients and advisers. Technology and AI remains significant investment priorities.

Our early investment in data, systems and safeguards allow us to deploy AI at scale, helping advisers serve clients gather assets and reduce administrative work. In fact, practices using these current capabilities can generate more than 30 hours of additional capacity each week. That's time advisers can put towards clients and business since growth. With the additional time, advisers and teams can use AI to bring even more recommendations to clients. In fact, we delivered tens of millions of AI-generated insights, and nearly 3/4 of practices are using these insights. This quarter, we're beginning the early release of an AI-powered median prep agent and AI service assistant. In 2027, we plan to expand these capabilities with broader data integration and more automated guided workflows building on the investments we've made and in addition to the other capabilities that we previously introduced.

We invest thoughtfully and strategically in capabilities that work together on an integrated platform. That's a key advantage at Ameriprise. For example, our technology can connect client insights, meeting preparation and follow-through to help advisers move from identifying the need to taking action. Because we don't simply want advisers to affiliate with Ameriprise, we want them to achieve here.

Turning to Retirement & Protection Solutions. The business delivered very good results, including strong margins and good free cash flow generation. As we help more advisers incorporate these solutions for clients in their practices, sales increased 24%. This was driven by high demand for structured variable annuities, variable annuities without living benefit riders and VUL. RPS strengthens our client experience, and we continue to enhance our product suite. And AI is helping us to accelerate underwriting and lowering processing costs while we maintain disciplined risk management. We're also simplifying the digital sales process to make it easier for advisers to bring these solutions to clients.

Turning to asset management. We're delivering attractive investment performance and profitability while expanding our capabilities and distribution to support growth. Assets under management and advisement wrote to $743 billion with growth in equities and alternatives. Strong investment performance is key. We offered 92 4- and 5-star funds globally, and 78% of our retail funds are above medium versus peers over 3 years, 74% over 5 years and 87% over 10 years. Having good long-term track records is important in our business.

Turning to flows. Outflows were $8.4 billion, excluding legacy insurance flows, primarily driven by certain larger institutional mandates largely due to client asset allocation decisions. Overall, our retail flows continue to compare consistently with U.S. peers with outperformance in equities and more opportunity for us to gain traction in fixed income. We're mitigating pressure in our legacy mutual fund franchise and from certain closed blocks that have good economics. We're building out our capabilities in active ETFs, SMAs and models, we are seeing good inflows. This includes in our Signature Wealth platform, where we're earning a nice share. We also launched 2 new premium equity income strategies in the United States in the quarter. Our high fee alternatives business is also gaining momentum, and you've seen the results in our stable fee rate and attractive margins. [indiscernible] is a source of differentiated performance and nice flows through its long-only technology strategies and technology and health care hedge funds.

We're also seeing good opportunities in our U.K. and European real estate business, including several attractive asset purchases. And we recently announced a strategic collaboration with Hamilton Lane initially focused on launching a public-private growth equity interval fund in the coming months. In Global Asset Management, we continue to simplify the business to lower cost and support profitability while investing in technology and AI. Here, we're using AI to expand research capacity to help the investment teams assess information faster and better prepare our distribution teams for client discussions.

Our firm-wide approach to AI combines the disciplined investment and responsible oversight you expect from us, focused on enhancing the experience to clients, advisers and employees while driving growth and efficiency. At Ameriprise, trusted advice broad capabilities and excellent service drives client satisfaction, adviser productivity and deeper relationships. That translates into attractive financial performance and returns. We continue to generate substantial free cash flow with return on equity above 56%. We also increased our share repurchases in the quarter and our Board approved a new $5.5 billion share repurchase authorization, reflecting strength and confidence in the long-term value of Ameriprise.

We consistently invest for growth and returned significant capital to shareholders. At Ameriprise, our outcomes and their consistency set us apart. When markets are rising, many firms can perform well. But the real test is how you perform when conditions get tougher. We've been through that many times, and we've shown we can navigate change, keep growing and deliver strong results to our clients, advisers, employees and shareholders.

In closing, in addition to the firm's differentiators I've mentioned, for 2027, Ameriprise was named to Forbes most trusted companies list and also recognized as 1 of Forbes' world's best employers. These awards reflect the confidence in Ameriprise as both a company to do business with and a place to work.

With that, I'll turn things over to Walter for more detail on our financials and then we'll take your questions. Walter?

Walter Berman

Thank you, Jim. Ameriprise continued to deliver strong financial results in the quarter in aggregate and within each of our businesses. Adjusted operating earnings, excluding unlocking, increased 14% and up 22% on a per share basis. These results reflect the strength and durability of our diversified earnings profile, operating leverage across businesses and disciplined execution. Total assets under management, administration and advisement increased 8% to $1.8 trillion which, coupled with strong client engagement drove a 10% increase in revenues to $5.1 billion, excluding unlocking.

General and administrative expenses increased 3% to $975 million, driven by volume-related expenses, continued investments for growth and higher compensation expense from asset growth and performance. The margin remained strong at 28%, excluding unlocking. Our balance sheet remains exceptionally strong, enabling a 93% payout ratio in the quarter with diluted share count declining 7% to $90 million, reflecting continued share repurchases. We closed the quarter with $2 billion of excess capital and $2.3 billion of holding company available liquidity. We are positioned well to invest in profitable growth and drive sustained value creation for clients, advisers and shareholders through changing markets, rate and competitive environments.

Let's turn to Wealth Management financials on Slide 6. Adjusted operating net revenues increased 13% to $3.4 billion. Our fee-based and transactional-based revenues remain quite strong increasing 15%, benefiting from growth in client assets and higher activity levels. Specifically, transaction activity remained strong, increasing 6% and compared to the prior year, primarily from increased sales in annuity products and brokerage transactions. We are managing expenses well with G&A up 4% primarily driven by volume and growth-related investments. For the full year, we continue to expect general and administrative expenses to increase in the mid-single-digit range.

Pretax adjusted operating earnings increased 12% to $989 million, with continued strong contributions from both core and cash earnings. Our core earnings grew more than 20%, benefiting from higher client assets and advisory fees as well as strong transactional activity levels. These results are unique relative to other wealth managers and demonstrates our focus on balancing growth and sustainable profitability across all aspects of our business model. We believe we are in a strong position given our more balanced earnings mix relative to peers. Cash earnings were essentially flat to a year ago, driven by an increase in the bank offset by lower certificate balances and lower short-term rates.

Last, our margin remained excellent at 29% with strength in both core and cash. We expect margins to stay in that range, assuming normal market conditions.

Let's turn to Slide 7 on Advice and Wealth Management. Total client assets grew 8% and to $1.2 trillion and Wrap assets increased 12% to $729 billion, driven by solid organic growth, strong adviser productivity, and equity market appreciation. Excluding Comerica, client net inflows were up 56% versus last year to $5.3 billion and Wrap net inflows were up 38% versus last year to $6.6 billion, reflecting continued solid underlying organic activity. Our focus remains on driving adviser productivity. In the quarter, revenue per adviser grew 13% to $1.2 million, which is a continuation of a strong track record of growth from consistent strategic investment in the operating framework for AWM in total and for our advisers.

This drives sustainable value creation at their practice and company level. Specific areas of focus to drive these productivity improvements include: an excellent value proposition, support an operational foundation for our advisers to consistently deliver a differentiated client experience, organic and inorganic adviser practice growth strategies across the full life cycle of their practices, stability and depth of our operating and technological capabilities and our strong field leadership structure. Our approach reinforces the long-term partnership between the firm and the adviser and represents a 2-way commitment. As a result of our consistent support over many years. Our adviser retention remains strong across our overall adviser base, including [indiscernible] advisers who have been with the firm for more than 10 years, where retention remains in the high 90% range. This focus led to strong and improving organic client flows, which increased sequentially.

Our organic flow rate remained in the 4% range. The inorganic recruiting environment remains competitive in this perceived risk on backdrop. In the quarter, we onboarded 7 advisers with good production levels. The pipeline is good, and we have selectively adjusted our offers to reflect the continued competitive environment. We have a proven track record of effective onboarding and on the ability to increase adviser productivity. The combination of organic net new asset growth, coupled with our ability to compete effectively for the right advisers will enable growth while preserving our margins as we move forward. We will continue to evaluate the facts and circumstances and assess the trade-offs between sustained profitability, flows and associated risk.

Our approach reflects disciplined stewardship of the business with a focus on sustained shareholder value creation over the long term. With regard to our financial institutions business, as Jim said, Ameriprise and Huntington Bank completed the transition of their advisers to Ameriprise on October 19. We continue to actively engage additional firms in partnership discussions and have the capacity to grow this platform further.

Turning to cash. Our total client cash of $81 billion was down 5% year-over-year, primarily from third-party money market funds as well as Comerica transition. Bank assets increased 2% year-over-year and underlying cash sweep balances were stable. I'll note that cash sweep has been very consistent with an average account size of approximately $5,000. We benchmark our cash sweep rates regularly to ensure we remain competitive with the industry.

Turning to Asset Management on Slide 8. Financial results were strong in the quarter, with pretax adjusted operating earnings up 18% to $308 million and an excellent margin of 46%. Total assets under management and advisement increased to $743 billion of 4% year-over-year from higher ending market levels. Revenues increased 9% to $990 million, and the underlying fee rate remained consistent at approximately 48 basis points. Expenses remain well managed. General and administrative expenses were up 2%, driven by higher Seligman compensation expense and volume-related expenses. For the full year, we continue to expect general and administrative expenses to be flat, excluding Seligman and other performance fee compensation.

Let's turn to Slide 9. Retirement and Protection Solutions continued to deliver strong and consistent earnings and free cash flow generation, reflecting the high quality of the business. Excluding unlocking, pretax adjusted operating earnings were $198 million. This reflected continued market appreciation and favorable life claims, offset by impacts from variable annuity outflows and higher distribution expenses related to strong structured annuity sales. The company completed its annual actuarial assumption update in the quarter. which resulted in an unfavorable after-tax impact of $74 million as described in the earnings release.

I'll note, the long-term care business is performing well and in line with our expectations and we've included additional information in the appendix of my presentation.

Turning to balance sheet on Slide 10. Balance sheet fundamentals and free cash flow generation remains strong which is core to Ameriprise and our ability to invest for growth on a sustainable basis while also returning significant capital to shareholders. Our return on equity is best-in-class at 56%, excluding unlocking. Given our capital strength and share price opportunity, we accelerated our capital return to $1 billion, which was 93% and of operating earnings. We have increased capital return by 24% in the year to $2.9 billion. This included repurchasing 4.9 million shares at an average price of $491 compared to 3.7 million shares at an average price of $508 in year-to-date 2025. We have also announced a new larger share repurchase authorization of $5.5 billion through September 30, 2028. These actions are a demonstration of our confidence we have in our continued free cash flow generation and commitment to return capital to shareholders.

In summary, on Slide 11, Ameriprise delivered very good results in the third quarter, consistent with our longer-term trend. Over the last 12 months, revenues grew 11% and adjusted EPS increased 19%. Return on equity grew 340 basis points, and we returned $3.9 billion of capital to shareholders. This was an acceleration of our very good growth trends in the past 5 years with 8% compounded annual revenue growth, 17% compound annual EPS growth, return on equity improving 6 percentage points, and we returned to over $14 billion of capital to shareholders. Our unique model consistently generates strong overall results profitable growth, free cash flow and a differentiated outcome for our clients, advisers and shareholders.

In closing, we have an excellent foundation and capacity moving forward to make investments for growth, drive organic net new assets and effectively recruit enabling consistent and sustained profitable growth. We will continue to evaluate tradeoff decisions in the context of delivering on our stewardship principles, maintaining strong margins across our businesses and commitment to sustained shareholder value creation.

With that, we'll take your questions.

Operator

[Operator Instructions]

The first question is from Suneet Kamath of Jefferies.

질의응답

Suneet Kamath

I wanted to start with the comments on the wealth management, recruiting and retention strategy. So it sounds like you're making some changes to your packages. Some of that's been reported in the press. So we're getting a lot of questions on it. I was just wondering if you could maybe detail how widespread are these changes? What are you doing? And just any additional information on that would be helpful. .

Walter Berman

It's Walter. First premise, we are not making changes. Our focus has always been organic growth. And the strategies that we have are focused on growing their practices and understanding the value proposition we give and how we can improve that with them. That is totally consistent the way we've managed this that is not a change. That is a focus of the way we operate our business to grow organically and to meet our clients' needs and their needs through that investment. That investment has commitments from us and from them to continue that in a very focused way, and you've seen the results of that as it relates to our performance and implication.

As it relates to that, the strategy and what has generated our margins will continue that way because it's consistent with the way we're doing it, and we get certainly the investment and the payback as it relates to that. So that -- what's in the press, I guess, from my standpoint is not dealing with our organic approach to it and not a churn factor to it. We want to grow our value props [indiscernible], and we're doing that. And that's what is the focus. .

Suneet Kamath

Okay. So I mean not to pin you down, but it sounds like what you're saying is the stuff that's being reported in the press is not consistent with the approach that you're taking?

Jim Cracchiolo

Yes. Suneet, first of all, we're out recruiting like everyone else, and we just mentioned that we brought in another good group of advisers. Very clearly, what we really put out there is what we do for advisers. So I just read another letter last night from an adviser who joined us a year ago from another firm, said they were blown away about the support, the technology, the capabilities they've never grown as quick over the last year, even through transition. And they said, we have a very large practice and to be very honest, they said, we're always concerned if we were to move what the implications to our clients and the practice would be and said, they thanked us, they thank the leadership to recruit because of what they have here, and they never thought it would be as good.

So that's what we do, and we explain that, including with advisers that might be thinking as selling -- getting sale the package. What you see out there is there's a lot of movement. We've always had movement in our industry. In terms of advisers, our retention remains very high. It's in the high 90 is very high for anyone leaving to a competitor. Now we have retention because of succession, we have a retention that are impacted by debt. We have 10,000 some products. Our adviser account that's consistent year-over-year. We haven't lost in that regard. There's a lot of noise out there from anonymous source from recruiters with their own agendas. I don't want to comment, you can write into anything today and it gets published.

We work with advisers to understand what they're looking to do and grow, including people that may be getting office out there. We evaluate arrangements with the advisers to help them achieve their objectives, whether that's through practice acquisitions, succession strategies, liquidity. And we even make adjustments for complex teams, so it's equitable to them and their practices. And that's what we look to do to help them accomplish their objectives at the same time, accomplish our firm objectives. So we work in partnership with advisers, whether they're here and not looking to leave or that the they get an offer or there's something that they think is always evaluated based on what people are saying out there, whether they deliver it or not.

So whether it's going to an RIA or another firm, we look at the comparison some advisers don't understand. They think there's something that's rosy or whatever, until you really have to explain to them and understand what their differences, what they give up and what it might mean to them. So -- but people will always move, right? Just like all of you go from 1 firm to another at certain points in time. So from our perspective, our retention is very high. What we look at is that productivity. And as Walter said, that productivity continues to be strong. We have good margins, and we maintain it. I would just say to this, people say, well, 5 and 10 years out or whatever, there's going to be a big payback from this. I look at it and say, "Great, but markets will change, environments will change. Private equity may move some place else quickly if they can't get their multiple return Ameriprise is going to be here, but more importantly, our advisers are going to be highly productive and supported, and that's what we do. So I can't handle anything pushed in the industry. But sometimes people need to understand a little more before they write things.

Walter Berman

So let me just add a final point to because it always comes down to sell 1 of it. Our strategy that Jim just described is what has generated our performance, our margins, our sustained value. It's currently doing it, and we'll do that in the future. We see no integration from that standpoint. That strategy is basically does drive our sustained profitability and meet our stewardship of serving our clients, serving our advisers and doing it in the most effective way. .

Suneet Kamath

Okay. That's helpful. And then on a follow-up, just on the FIG opportunity. I think that you said that you're looking at some other opportunities out there. I guess how should we think about the size of those? Should we think about HBAN as sort of the elephant or the big whale and everything else you're looking at would likely be smaller? Or are there actually opportunities of similar size?

Jim Cracchiolo

So Suneet, we already have other smaller firms. Again, we don't mention every one that we bring in are in the pipeline. But Huntington is 1 of the largest ever done out there. And I think that's going really well. We're there to support and make sure that they can really capitalize on what we brought together and grow. And I think there will be other opportunities. And I would think that we're now very well established. Huntington will show others that we can support larger activities and do that well. Our capabilities are something that is differentiated out there and what we do to support advisers and help them really grow productivity but also serve their clients well. And that's what banking institutions want and that we can provide that service and consistency.

So I think that this is a good opportunity, and it opens a door for us.

Operator

Brennan Hawken from BMO Capital Markets.

Brennan Hawken

So thank you for laying out the net new assets, excluding Comerica. I believe you had previously said that the starting point for that asset base was $19 billion. So I just wanted to confirm that. And assuming it's right, can you help us understand what the profile of the $5 billion and change headwind that preceded this quarter look like across the quarters ahead of time just so we can get an underlying assessment of the net new ex the noise .

Walter Berman

Yes. So as we talked about the Comerica, yes, I can confirm on that basis, the math from that standpoint, the swing. And the majority of Comerica was out from that standpoint. And we've experienced $19 billion. There will be some small portion going out going forward. And we are -- again, our organic flows, and that's where we're focused and are certainly stable and growing based on the investments that we talked about. And so from that standpoint, I feel comfortable as we look forward that we will continue to generate good organic growth and certainly deal with the recruitment in an effective way, as we said we would do, on a fact and circumstances based to make sure we generate the right returns that make sense for us and for the wider [ bodies ] coming into the network. Is that correct?

Brennan Hawken

Yes. No, that helps. And then just a follow-up to Suneet's question. So when we look at the trends around your adviser loan growth over the past few years. It's been in line with most peers despite your stated aversion to recruiting. You guys touched on and gave plenty of color around how you view the press reports. So that's super clear. But the topic of retention loans, could you maybe touch specifically on those tools and your view on those tools and whether or not maybe the attention might have drawn more FA attention to such optionality here recently? .

Jim Cracchiolo

What we do and where some of our loan build is because we help with succession, we help with practice acquisitions. So advisers actually buy other practices, and we help to do that transition. So that's the liquidity for the selling adviser and that the team's taken them over can then substantially build without putting out all that cash. So we work in partnership, and that's part of the big loan practices that we do that helps both them grow, but also good for the company and it serves the clients well. And so that's what we look at. And then as I said, as people are evaluating, we will make adjustments based on what they're committed to achieve. What they need to do in their practices for that liquidity or for team members.

We make adjustments if they're complex practices, so it's equitable that will help them achieve what they need to achieve here. So those are the things that we work on, and we do that in partnership. But what we do across 10,000 advisers is help them grow. We don't just associate and say it's up to them. We give them the technology. We work with them in their practice management to see where there's opportunity and how they can do that. We provide experts and coaching. We give them the support and practice with individual support that we provide. Those are the things that differentiate Ameriprise because we care for them and we care for what they can deliver to the clients for that satisfaction.

That's what makes Ameriprise strong and that's what makes the practice as strong. So you can term it whatever you want, but that's what we do, and we've been successful. And so you can look at our numbers consistently. You can look at our retention consistently. You can look at our productivity consistently. But there's a lot of promises out there. You've got good markets, you've got a good environment, people get aggressive. You've got people that are trying to start new firms, consulting, sell their wares listen, you can't -- that's the way the industry is right now. I think it will change again. It has over the years. I've been in the business for many, many years. But Ameriprise will stay good and strong and our advisers will be supported and highly productive. .

Walter Berman

So let me just add 1 thing because this is based upon understanding the adviser. This is not a commodity approach to things that just throwing money. This is understanding their objective sets what we bring to the table for a long-term sustainable element that works for them and works for us. This is geared around their practice to ensure that their practice grows, and we help them grow building on the capabilities we already give them and them seizing upon that opportunity. And so this is not done as 1 fits all. It is done for basically on a individual basis based on their objective sets and our objective sets and the key operator is strategically aligned.

Operator

Steven Chubak from Wolfe Research is online with a question.

Unknown Analyst

This is [ Chris O'Brien ] on for Steven. I wanted to add something a little bit more broad on the competitive environment with potentially 2 more rate hikes coming in the next 12 months. I'm curious if this changes your outlook for the overall competitive environment for recruiting and it takes your outlook as to what you expect for some of the key back firms that have offered some of the more aggressive packages.

Walter Berman

Well, the answer is obviously, we've looked at the environment. We certainly do multivariable analysis of what the implications are if those 2 high come. We certainly think there's a probability as you look at certainly with the Fed and overs have indicated where that is. The key element to us -- when we build this in, it is basically a factor of -- it's a noncontrollable. It's a benefit. It's something that you don't bank on that is going in because you don't control it. But I do expect in this situation of risk on. People will seize the moment to basically invest more and provide deals that are out there that go even stretch beyond 7 and 8 years because they are counting on that cash, I can't get into their models. I know what we do. We do it for sustainability, makes sense, considering it -- but the issue is we recognize it's a noncontrollable and we have a balance between our core profitability and cash profitability. .

Jim Cracchiolo

I would just say 1 other thing. Fed raises rate. Why are they raising rates. I think you never know what that causes and cracks in the environment and the market for that matter. So listen, we go through cycles. It's not always a good thing, and it's not always going to go up. So Ameriprise looks at those things, challenges what that is and ensures that we're in good stead. I can't talk for others, but they may be continue, as Walter said, to do -- be more aggressive or they may get and understand that the environment could change and there are impacts when it does.

Unknown Analyst

Great. And if I could just follow up...

Operator

Please hold for 1 technical difficulty. Here, while I restage, Tom Gallagher is on line with a question from Evercore ISI, and I will bring the other person back on the stage. Please go ahead. We were not hearing you. .

Thomas Gallagher

Okay. Can you hear me now? .

Walter Berman

Yes, we can hear you.

Thomas Gallagher

Okay. So Walter, I think you mentioned you expect stable AWM margins at around current levels. Does that contemplate customer cash balances declining? Because I know this quarter, you had more moving into money market funds, which I guess pressured the balances -- would you expect that trend to continue in terms of seeing a decline? Or is there something unusual about the quarter?

Walter Berman

No. The quarter is actually -- normally in this quarter, it drops and then it starts building up in the fourth quarter. We had Comerica coming through, which is distorted that number. But again, that is the fact that, but actually, it's stable, it's tracking exactly where we are. And so that has -- it is incorporated in building, as we said, growing from that standpoint and getting the benefits of certainly as we go paydowns, maturities and other things as we go forward. So we feel quite confidante and with the sweep money, it is well managed, and we have ALM capability that is understand from that standpoint. So there's nothing unusual.

Thomas Gallagher

So Walter, you would not expect to see a decline in margin and the AUM that you make on customer cash going forward. Is that a fair .

Walter Berman

Yes, that's a fair, helps that. .

Thomas Gallagher

Okay. Good. My follow-up is, I know institutional flows were softer this quarter in asset management, Jim, from what you described that it sounds like there were some chunky reallocations related outflows in the quarter. Would you expect that to improve? Or do you think that, that may continue for a while here on the institutional side? .

Jim Cracchiolo

No. I expect that to improve. There's a lot of volatility, particularly Europe, et cetera, over the last many months. And so I expect that to improve. As I also mentioned in my talking points, we're seeing some good activity in some of our alternatives area which is grade our real estate area. ETFs will be launching some more. We just put 2 premium ones to the market. And we will actually be doing more next year. Our model business is doing well. Signature Wealth is doing well for Colombia. So underneath it, I mean, even in the outflows in retail, the equity is like half of the outflow in the industry on a rate basis, where we're a little weaker is in fixed income.

We're not getting some in certain of the categories. and that's what we're focused on. But we think that we can get that over time as well. But overall, I think we're making some underlying adjustments, but the institution is what is the visibility right now. But we think that we can get some some wins there.

Operator

Steven Chubak from Wolfe Research is online with a question. All right. [indiscernible] of Bank of America is online with question.

Unknown Analyst

Just 1 question on the gross fee yields. I recognize that the fed rate hike happened late in the quarter. But if I look at like 2Q versus 3Q, there was a sequential decline in the gross yields across like the bank certificates and others. So could you maybe speak to that a little bit?

Walter Berman

No. From that standpoint, as it relates to our strategy, obviously, we have invested out with the bank and other things. So that is an element that -- we got the benefit of the short rates and [indiscernible], it's just our search and others, there's nothing unusual in there that we talk about as it relates to yield at all because it will work its way through and that's it and bank we invested out. And from a standpoint, you'll see some benefits. I'm not sure we'll check what you're saying, but there is no implication to that.

Operator

Wilma Burdis from Raymond James & Associates, Inc. is on line with a question. Please go ahead.

Wilma Jackson Burdis

Was the higher share repurchases in the quarter -- can you just talk about how you think about that? Was it driven more by the share price in the quarter? Or does it represent a change in how you think about repurchases? .

Walter Berman

So as we've always said, we have the capacity, and we will evaluate as we look at opportunistic situations, and that's what occurred in the quarter. We thought it was opportunistic, and that's what we did, and we have the capacity to do it and we do.

Wilma Jackson Burdis

And overall, this seems like a pretty good quarter, nice beat on EPS, good recruiting, good flows in the Wrap.And overall, just pretty normal results. It seems like Comerica or not Comerica, Huntington Bank is a good win there. Do you guys feel pretty good about the outlook. Maybe just talk about that. Is this a good run rate type quarter .

Jim Cracchiolo

Yes, we feel very good. I think -- and you look at as well. If you look at the fundamentals of the business, the core activities of the business, the consistency and the productivity -- all that we feel good about. Our pipeline continues to be good from a recruiting. Our retention continues to be very high. Overall, from a company perspective, we manage investment and investments well and investing in a lot of good areas that we're seeing good activity on and at the same time, we manage our expense base well. So the margins will hold. And as we move forward, again, we very much focus on that consistency of what we're delivering. And you can see it in the last 5 years, 10 years, whatever you want to look at and including this year. So to your point, I think you could say, based on the fundamentals of the business and what we're doing, we feel good.

Operator

Kenneth Lee from RBC Capital Markets. .

Kenneth Lee

Just 1 on the retirement side there. just given the current rate outlook, higher long-term yields there. Do you see potential benefits over time in terms of the earnings generation within that business, especially as you get potentially higher new money yields.

Walter Berman

Yes, listen, our business is 1 that makes huge contributions from -- to our other businesses. And yes, we have managed that risk return. It is an accumulation business and -- we feel very comfortable with the contribution, it's the stability of its contribution and the way we manage it. And yes, going forward, it will be stable. It will be -- also provides a counterbalance in cycle changes and other things. So it is exactly performing the way we designed it and [indiscernible] making a contribution, not just on the financial side, but also on what it contributes to our ability to meet our clients' needs in AWM and asset management. .

Jim Cracchiolo

Yes. And the way we're investing, we'll continue to generate good spread there and good investments that will give us a good return. Yes. .

Kenneth Lee

Got you. Very helpful there. And just 1 follow-up, if I may, just on -- in terms of the annual unlock, the actuarial review there. Any further color around some of the key policyholder behavior assumption changes that were made there? .

Walter Berman

Yes. What you're seeing there is call something expect and the performance on the behavioral side, both on the variable annuities and insurance is all within basically boundaries, but understanding of the behavioral aspects of it. we feel very comfortable how we're managing the risk return on that portfolio to behavioral characteristics. And yes, it is an environment when you have some appreciation in the equity marks than others. -- that's -- it's totally within our anticipation. So we feel very comfortable with managing that portfolio. And any, the impact is, we feel, as we project out, is all totally aligned.

Operator

Tom Gallagher from Evercore ISI is online with a question. .

Thomas Gallagher

Jim, I just wanted to come back to the kind of the elephant in the room on -- and I know you've been asked about it already. But when we look at some of those press reports that talked about how I think the implication was there was some broad retention program being rolled out. It sounds like that's not happening from what you're saying, just to confirm that and the other thing I've noticed is, I guess, in some of the prior calls, you were talking about irrational competition for recruiting in terms of some of the packages being offered. I didn't really notice you mentioning that this call.

But just a few different questions there, but how are you thinking about that kind of broader trend? Are you still seeing that level of irrational competition for recruiting. And is it fair to say that you're just -- you're managing it just 1 team at a time. And so if it makes sense, you might do something about retention, but there's nothing broad that was sort of suggested in some of the articles that were out there. I just want to get a better handle on this.

Jim Cracchiolo

So you get to write in from an anonymous source. I mean people are trying to make hay out there in different ways. I would just say there's no program. And as we said, and I went through extensive detail in the last 2 comments, -- so I don't need to repeat it again. I think you can look it up. But very clear, we work with advisers. We're partnering with them. We do what's necessary to help them grow, succeed acquisitions, liquidity, things like that. From our perspective, I would say, I'm not sure where that came from or what, but let me leave it at that.

At the same time, from a recruiting package perspective, it's still -- people are -- that's out there for long periods. And so maybe when people say to you, well, 5 or 10 years from now, you'll get we don't work that way. We're very rational, but we bring in people based on a value proposition, what we help them do and what we achieve. And we've got an excellent track record for the people who are coming in. Their productivity is strong. They actually thank us for bringing them in. They just say, we wish you -- we would have spoke to you sooner and contemplated it. So listen, it is what it is and environments go through this. I've been in the business for many, many years, and all is not what it seems.

Walter Berman

Tom, let me add I review these deals when they get to a certain size. And certainly, I can say on a reverse reengineer, I scratch my head even when you consider the benefits that we have and we provide for growth and all the things that Jim mentioned about the investment and yes, the impact of leaving and when you're dislocating and when we take a look of what you have to believe they're being offered and these are having 7- and 8-year paybacks on cash, it is -- I just scratched my head. Again, we know what we offer. We know the value we create. I don't get into what other people do. But I would say to the question was asked before, with interest rates potentially going up, it's probably going to few it like it's noncontrollable, but if people want to use that in their offering, there's a point, you do have to get paybacks and those paybacks are a pretty extended level. .

Jim Cracchiolo

And short rates as they go up, will come down once the inflation or economy slows a bit.

Operator

We have no further questions at this time. This concludes today's conference. Thank you for participating.