Ameriprise Financial (AMP) said late Wednesday that its net income from continuing operations was $271 million, or $1.12 per share, compared to $346 million, or $1.33 per share, a year ago. The latest quarterly results missed analysts' estimates of $1.21.
Third quarter results were affected by a $106 million, or $0.42 per share, "unfavorable market impact on deferred acquisition costs (DAC) and deferred sales inducement costs (DSIC), as well as the company's annual review of insurance and annuity valuation assumptions and models (unlocking)," the company explained in a press release.
"The negative unlocking impact in the third quarter of 2011 primarily reflects lower near-term interest spread assumptions," it added.
Operating net revenues, however rose to $2.5 billion from $2.3 billion a year ago, primarily driven by double-digit growth in management and distribution fees, says Ameriprise, the former parent company of Securities America.
"We continued to demonstrate the strength and resilience of our business despite a challenging market environment," said Chairman and CEO Jim Cracchiolo in a statement. "Client acquisition and advisor recruiting remained strong, and our advisor productivity was near all-time highs."
Total assets under management and administration were $600 billion as of September 30, down 4% from a year ago, primarily driven by the drop in the equity markets.
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