Ameriprise Financial 2026 Outlook: Strategy, Growth, and Competitive Positioning — Bank of America Financial Services Conference Fireside Chat with CFO Walter Berman
Key Takeaways
TL;DR: Ameriprise Financial (AMP) highlighted the resilience and integration of its three core businesses—Wealth Management, Asset Management, and Insurance. Management is focused on maintaining strong margins, disciplined expense management, and active advisor recruitment/retention amid intensifying competition. AMP is well-positioned for a lower-rate environment, expects continued organic and inorganic growth (notably through new bank channel wins such as Huntington), and remains committed to returning 85–90% of excess capital via buybacks and dividends in 2026. While asset management net flows remain a challenge, improvement is underway. The insurance segment is now a smaller, lower-risk, but strategically valuable contributor.
1. Interest Rate Sensitivity & Balance Sheet Management
- Reduced short-term rate exposure: Asset-liability duration at ~3.8 years; high asset quality maintained.
- Anticipates three Fed cuts in 2026: ~$7bn in off-balance sheet short-term cash, currently at a low point, expected to be offset by paydowns, maturities, and bank growth.
- Average earnings rate on new investments: ~5%.
- Spread business managed to 100–120 bps: Expected to remain in the $5–6bn range.
- Marginal impact from rate cuts on off-balance sheet sweep.
2. Wealth Management: Growth, Profitability, and Advisor Strategy
- AUA exceeds $1.1tn; bank assets at ~$23bn.
- Advisor recruitment/retention prioritized: 91 advisors added last quarter, 336 in 2025; targeting +4% net new asset growth in 2026.
- Competitive pressures on advisor compensation rising: AMP is adjusting its value proposition and has margin flexibility to absorb higher costs.
- Focus on higher-quality advisors: Targeting client bases of $500K–$1mn+.
- Bank channel as a growth vector: Recent Huntington win ($20bn AUA, 260 FAs, announced Feb 2026) and prior Comerica partnership ($15bn AUA, 2023) underscore AMP’s differentiated offering.
- Expansion of remote channel and succession planning to drive additional growth and retention.
3. Expense Management & Operating Leverage
- G&A expense growth targeted at 0–2% overall; Wealth Management investments to continue at ~5% growth, focused on technology and advisor tools.