Ameriprise Financial is prioritizing organic growth by aggressively recruiting experienced financial advisors rather than acquiring asset management firms. CEO Jim Cracchiolo told ThinkAdvisor that private equity activity has driven up acquisition costs, making expansion through recruitment a more attractive option.

ThinkAdvisor reports that Ameriprise added 91 experienced advisors in the fourth quarter of 2024, increasing its total advisor count by 1 percent to 10,427.

Ameriprise reported $1.1 billion in net income for the fourth quarter of 2024, significantly up from $377 million in the same period in 2023. Revenue also increased to $4.5 billion, compared to $4 billion a year earlier. Assets under management, administration, and advisement rose 10 percent year-over-year to reach $1.5 trillion. The advice and wealth management unit saw revenue climb 16 percent to $2.8 billion.

Revenue from advice and asset management jumped 25 percent to $1.8 billion, while fees for distributing annuities, insurance products, mutual funds, and other financial products increased 13 percent to $633 million. ThinkAdvisor also reports that the average revenue per advisor grew 13 percent, surpassing $1 million.

Ameriprise maintained its number of franchisee advisors at 8,171, while the number of employee advisors increased by 1 percent to 2,256. Retention of employee advisors dipped slightly to 92 percent from 92.5 percent, whereas franchisee advisor retention rose to 92.8 percent from 92.5 percent.

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