MINNEAPOLIS (AP)—Ameriprise Financial Inc. said Wednesday its third-quarter net income dropped nearly in half as the company recalculated how much its insurance and annuities were worth.
The company also lifted its quarterly dividend 29 percent, to 45 cents, and said it could buy back up to $2 billion worth of its shares through 2014. Repurchasing stock can help lift earnings per share and could increase the value of investors' holdings.
The investment manager and financial advisor reported net income of $173 million, or 79 cents per share, in the July-September quarter. That was down 47 percent from $324 million, or $1.34 per share, in the third quarter of 2011.
Ameriprise said that revisions of the value of its insurance and annuities, based on its annual review, caused a reduction of $48 million, or 22 cents per share, in earnings. That compares with a reduction of $9 million, or 4 cents per share, in the third quarter of 2011.
