Ameriprise CEO James Cracchiolo. Credit: Ameriprise
Ameriprise CEO James Cracchiolo is wondering how long competitors will be able to pay what he sees as very high prices to keep luring advisors away.
Cracchiolo talked about competition for advisors last week during a conference call with securities analysts.
Analysts noted that two large advisory teams had left Ameriprise, and some asked whether Ameriprise had thought about increasing its compensation or taking other steps to keep advisors.
Ameriprise ended 2024 with about 10,000 advisors. This year, it stopped reporting advisor counts.
Cracchiolo said during the call that the company is always looking at advisor compensation, and that the company had attracted 90 advisors during the third quarter, which ended Sept. 30.
"Our pipeline is quite good," Cracchiolo said. "Our advisor satisfaction is very strong. We feel very good about our position. But we always look at not just the short term, but the longer term. And that's where, maybe, people are getting a bit overlevered."
Cracchiolo told the analysts that he's been in the financial services industry for many years.
"People forget that you go through downturns and changes in the market," he said. "Things always look rosy until they're not."
What it means: At least one advisor recruiting veteran believes that winter could be coming.
Annuities: Executives said demand for the variable annuities it sells, including registered index-linked annuities, has been strong, and that the products are performing in line with expectations.
The earnings: Ameriprise held the call to go over thierd-quarter results with analysts.
The company is reporting $912 million in net income for the latest quarter on $4.8 billion in revenue, up from $511 million in net income on $4.4 billion in revenue for the third quarter of 2024.
Ameriprise CEO James Cracchiolo. Courtesy photo
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