The wealth and asset management industry continues to be driven by powerful demographic where the ongoing retirement of baby boomers, combined with growing affluence among younger generations and the largest intergenerational wealth transfer in history, has intensified the demand for professional advice. At the same time, increasing competition from low-fee passive products and digital advisory platforms has reshaped the industry’s economics, putting pressure on margins and forcing firms to differentiate through technology, personalization, and scale. Ameriprise has met these challenges by focusing on the high-value segment of clients with between $500,000 and $5 million in investable assets, maintaining a strong advisor network, and investing heavily in digital infrastructure to enhance client experience and advisor productivity.
The Advice & Wealth Management division, which generates about two-thirds of Ameriprise’s pretax earnings, continues to drive growth through a network of over 10,000 advisors offering financial planning, brokerage, and banking solutions. It is the sole distributor of RiverSource products, which include $198 billion of life insurance in force and $91 billion in variable annuity account value - clients with these products show retention rates over three times higher than average. Columbia Threadneedle manages $69 billion in RiverSource separate account assets, $26 billion in general account assets, and distributes $150 billion in Columbia funds through AWM, alongside $18 billion in discretionary wrap programs and $32 billion in bank and certificate assets.
Wealth Management remains Ameriprise’s main growth driver, with client assets rising from $447 billion in 2015 to $1.1 trillion in 2025 - a 10% annual increase. Over the same period, adjusted revenue more than doubled to $11.4 billion, and pretax earnings jumped nearly fourfold to $3.3 billion, lifting margins from 17% to 29%.
The Retirement & Protection Solutions (RPS) segment has generated $7.4 billion in pretax earnings and returned $9.6B in dividends to Ameriprise. Recent steps like reinsuring annuity portfolios and streamlining product lines have strengthened its capital efficiency, while steady client retention and predictable cash flow.
Columbia Threadneedle has strengthened its position as a top-tier global asset manager, with assets under management and advisement reaching $714B and an adjusted margin of 40.7%. North America remains its largest market at $464 billion, while international assets climbed to $211 billion, reflecting growing global traction. The firm maintains a balanced mix of retail and institutional clients and diversified exposure across equity ($369 billion), fixed income ($235 billion), and alternative strategies.
In October 2025, Ameriprise expanded its presence in Florida with the addition of The Atlantic Group, a 16-member team from Oppenheimer managing over 1.6 billion dollars in assets, strengthening its wealth management network. This move adds to the company’s long track record - since its 2005 spin-off, Ameriprise has outperformed the S&P 500 Financials Index, delivering a total return of nearly 1,940%, far surpassing the 700% gain of the sector and the 240% return of the broader S&P Index.
Net sales are projected to grow from $17.1 billion in 2024 to about $20 billion by 2027 (CAGR of 5%). EBITDA is expected to rise from $4.6 billion to $5.9 billion, with the EBITDA margin improving from 26.9% to around 29%. EBIT margin is projected to hold near 26%, while the net margin remains strong at roughly 20%, supported by operational efficiency and high-fee advisory revenues. ROA is forecast to climb from 1.9% in 2024 to 3.2% by 2027, and ROE to stay exceptional - peaking at 54.9% in 2025 before normalizing around 47.6%. Leverage remains low, with net debt expected to decline from –$5.1 billion in 2024 to –$13.5 billion by 2027, while FCF conversion remains high, at 85% of net income by 2026. EPS is projected to rise from $33.0 in 2024 to $44.3 by 2027, with dividends growing steadily to $7.1 per share.
Ameriprise Financial reported another strong quarter in Q3 2025, with adjusted operating EPS up 22% year over year to $9.87 and ROE excluding AOCI reaching 52.8%. Adjusted operating revenue rose 9% to $4.7 billion, driven by asset growth and disciplined expense control, while GAAP net income jumped 78% to $912 million. The Advice & Wealth Management segment led performance, with revenues climbing 9% to $3.0 billion and pretax operating earnings up 7% to $881 million, supported by record client assets of $1.14 trillion, 14% growth in wrap accounts, and average advisor productivity rising 10% to $1.1 million. Asset Management delivered $260 million in pretax earnings (+6%) on $906 million in revenue, achieving a 42% margin, as improved markets and expense efficiency offset $3.4 billion in net outflows. Retirement & Protection Solutions posted $217 million in pretax earnings (+84%) on 13% higher revenue of $1.1 billion, reflecting solid annuity demand and stronger investment income. Overall, Ameriprise maintained a 26% pretax margin and returned $842 million to shareholders - 87% of adjusted earnings - while total assets under management and administration reached a record $1.7 trillion (+8%).
Ameriprise’s primary risks stem from market volatility, changing interest-rate environments, and intensified competition from low-cost investment providers. Fluctuations in equity or fixed-income markets can affect fee-based revenue, while underperformance in investment products may challenge asset retention. The company also faces ongoing regulatory scrutiny and must continually invest to protect against cybersecurity threats. Nevertheless, Ameriprise’s diversified model, disciplined expense management, and strong advisor retention provide meaningful protection against cyclical pressures.
Looking ahead, Ameriprise enters the next phase of its growth with strong momentum and a balanced financial foundation. Management anticipates steady revenue gains supported by rising client assets, continued advisor productivity, and sustained growth in fee-based business. Ameriprise seems well positioned to deliver consistent, high-quality returns and strengthen its leadership in wealth and asset management over the coming years.
