Strong sales of registered index-linked annuities helped Ameriprise Financial push total annuity sales to $1.5 billion in the second quarter. Volume was 45% higher than in the second quarter of 2023, the company reported last week.
Life insurance sales increased 21% from last year to $93 million. The main driver was demand for the kind of variable universal life products that affluent clients can use to build cash value.
Ameriprise no longer sells new long-term care insurance, but operating profits for those policies still on the books at the company's Retirement & Protection Solutions business rose to $12 million, from $1 million a year ago, thanks in part to the effects of relatively high interest rates on the bond portfolio that supports the LTCI benefits obligations.
Ameriprise CEO Jim Cracchiolo told securities analysts that the company is happy with the insurance business results.
"I think the business will be a good, strong, consistent contributor," Cracchiolo said.
What it means: Life insurance and annuities are now moneymakers for companies like Ameriprise.
Strong life and annuity business performance could lead to better product options and prices for your clients.
Earnings: Ameriprise executives talked about the company's insurance business Thursday, during a conference call that the Minneapolis-based company held to discuss second-quarter results with analysts.
Ameriprise as a whole reported $829 million in net income for the quarter on $4.2 billion in revenue, compared with $890 million in net income on $3.9 billion in revenue for the second quarter of 2023.
Adjusted operating earnings, which exclude the effects of fluctuations in total asset and benefits obligation values, increased to $882 million from $807 million in the year-ago period.
