Ameriprise Financial Inc.'s first-quarter profit fell 2 percent because of rising expenses in the company's insurance division.
The Minneapolis-based firm posted a $393 million profit on $3.05 billion in revenue. Earnings per share, adjusted for nonrecurring costs, were $2.18 per share. The results missed Wall Street expectations.
That's partly because of a $32 million increase in the firm's long-term care reserve, the company said. In a statement, CEO Jim Cracchiolo emphasized the health of the firm's growing wealth management divisions.
"Ameriprise continues to deliver good performance, with our advice and wealth management and asset management businesses generating 64 percent of operating earnings in the quarter," Cracchiolo said in a statement.
Ameriprise shares have dropped slightly since the beginning of the year, while the Standard & Poor's 500 index has increased slightly more than 2 percent. Shares closed Wednesday at $131.62, up 1 percent for the day and an increase of 23 percent in the past 12 months.
STAFF AND WIRE REPORTS
