Welcome to the Q2 2015 earnings call. My name is Vivien, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded. I will now turn the call over to Alicia Charity. You may begin.

Thank you, and good morning. Welcome to Ameriprise Financial's second quarter earnings call. On the call with me today are Jim Cracchiolo, Chairman and CEO; and Walter Berman, Chief Financial Officer. Following their remarks, we'll be glad to take your questions. During the call, you will hear references to various non-GAAP financial measures, which we believe provide insight into the company's operations. Reconciliation of the non-GAAP numbers to the respective GAAP numbers can be found in today's materials available on our website. Some statements that we make on this call may be forward-looking, reflecting management's expectations about future events and operating plans and performance. These forward-looking statements speak only as of today's date and involve a number of risks and uncertainties. A sample list of factors and risks that could cause actual results to be materially different from forward-looking statements can be found in today's earnings release, our 2014 Annual Report to shareholders, and our 2014 10-K report. We take no obligation to update publicly or revise these forward looking statements. And with that, I'll turn it over to Jim. James M. Cracchiolo - Chairman & Chief Executive Officer: Hello everyone, and thanks for joining us for our second quarter earnings call. This morning, I'll provide my perspective on the quarter and the progress we're making in the business. And Walter will follow to discuss our financials. The company is performing well in a more challenging market environment. We're delivering meaningful results across a number of dimensions to mark a good second quarter and an overall first half of the year. However, we still have work to do in a few areas that I'll discuss. As you know, equity market volatility did pick up in the quarter. The strong dollar has also been a headwind in terms of foreign exchange…

Thank you. We will now begin the question-and-answer session. And our first question comes from John Nadel from Piper Jaffray. Please go ahead. John M. Nadel - Piper Jaffray & Co (Broker): Hey, good morning. Thanks for taking the question. My first one is around Advice & Wealth Management. You saw net revenues continue to grow pretty nicely, roughly in line with the growth in productivity. I guess I'm curious, Jim, whether you saw any significant change in the underlying mix of the sales by product? And I know, for example, last quarter, you saw a fairly late contribution from Annuity sales. And I'm assuming that picked up this quarter with the overall VA sales growth. James M. Cracchiolo - Chairman & Chief Executive Officer: Yes, that's correct. What we have seen is, again, strong take-up, again in our fee-based wrap businesses. We've seen an increase in our sales on the guaranteed, on the annuities side. Things like various transactional business and brokerage, such as REITs, are very low. It represents about – less than 1%, around 1% of our sales activity. So, it is really, again, sort of the core products and services that we have offered. We have seen a good flow improvement and good activity across our network. John M. Nadel - Piper Jaffray & Co (Broker): Okay. And then anything this quarter that you'd characterize as a – sort of, a noticeable early impact from advisors, maybe, shifting some business in response to the DOL proposal, recognizing it is only a proposal? James M. Cracchiolo - Chairman & Chief Executive Officer: Not at all. In fact, our advisors feel very good about what they do for the consumer, whether in qualified or non-qualified. We've had a pretty consistent mix. We get unbelievable satisfaction levels from our…

Thank you. And our next question comes from Yaron Kinar from Deutsche Bank. Please go ahead.

Good morning, everybody. Thanks for taking my questions. I want to start with the capital deployment. So could you maybe explain a little more the rationale behind the elevated buybacks this quarter compared to I think a very consistent $350 million quarterly run rate the last three years? And can we extrapolate from that, or think of an elevated new run rate going forward? Walter S. Berman - Chief Financial Officer & Executive Vice President: It's Walter. Again, as we've always indicated that we have the capacity and we will evaluate both the environment and our valuation, and we felt in this quarter that it was warranted to take that up. We did take it up $75 million. We will continue to evaluate that. We certainly have the capacity to do that. And I think at this stage, we're going to be opportunistic as we look into for the remainder of the year.

Okay. And then in Advice & Wealth Management, the recruiting efforts clearly were quite strong, and then you say the pipeline remains strong as well. Do you see any impact from the DOL proposal there? Do you see that impacting your recruiting capabilities? James M. Cracchiolo - Chairman & Chief Executive Officer: No, I think one of the things, again – the DOL will – once we exactly know what finally they come out with, we'll understand some of the implications. But we're probably situated very well in the type of business that we do, how we work with clients. We operate under a fiduciary standard across our network today. We have very strong compliance structures and it's one of the benefits of people coming to us. They like how we handle our centralized compliance, our disclosures, et cetera. We have a very strong client value proposition. And so we've seen a very strong, good pipeline of highly productive people both in our employee and franchisee channel. The pipeline remains strong. So, no, we feel pretty good about it. Again, we're not – I think we're in good shape relative to the industry in general. I don't see any differences between us or the industry when you look at it from a DOL. In fact, I think we're very well prepared because we have a very strong advisory relationship around our financial planning activities today and our retirement value proposition. So, again, we don't know exactly where the final regulation will come out, but I think you can see very strong responses out there from the industry, from the associations, even the regulators like FINRA. I just saw a note going out from the SEC Governor. I mean, so there are a lot of responses out there that hopefully the DOL would understand what they need to accomplish. We're very supportive of that objective. We think we can satisfy that objective very well. But, again, it's the way they go about doing it I think is where the rub is.

Got it. That's helpful. And a quick final question, if I could, also on the AWM segment. So I think you mentioned in the script that you're expanding into clients in the accumulation phase. And would that mean that we should expect some maybe offsetting productivity pressure coming on the revenue per head just because you are now targeting individuals that are probably not quite at the same level of net worth that the existing base is? James M. Cracchiolo - Chairman & Chief Executive Officer: No, not at all. In fact, I think it'd actually be a great complement. What we are doing, we're rolling out to our advisors right now, we've done a lot of work and research, both a combination of our brand, our value proposition, our Confident Retirement approach, Confident Retirement accumulation approach. We've built our – our heritage is based on accumulation for retirement, so I actually believe that we can serve the higher end of the mass affluent, and the affluent quite well and those really accumulating for retirement, the generation X coming up, et cetera. So it's really getting our advisors a little more focused on going back to that opportunity and combination, and it's really against the upper market here. So I actually think it will be a good opportunity for us and complement to what we do, and longer term to build long-term relationships as we have in the past.

Great. Thank you very much for taking my questions again.

Thank you. And our next question comes from Alex Blostein from Goldman Sachs. Please go ahead. Alexander V. Blostein - Goldman Sachs & Co.: Great. Good morning. Thank you. Question for you, guys, again on margins in the AWM. So clearly, really nice trajectory, nice expansion so far. As we look out and kind of thinking of the current environment stage, sort of, what it's been for the last kind of six months, maybe a little bit more a range bound market, how quickly do you think you'll be able to get that 17% margin that you have, the 17.3%, slightly higher which I guess, you guys are targeting closer to 18%, assuming no higher interest rates? James M. Cracchiolo - Chairman & Chief Executive Officer: Yeah, well, Alex, I think as we said, I mean, we moved the needle pretty well and pretty fast over the last number of years, going first at our 12% target, then to 15%, now we're in the 17% and change rate here. So I think if we continue to – just continue to execute, help our advisors just continue to drive their productivity and get our asset flow as we continue to focus our business even more on moving our center to a bit more on the affluent space, uptaking some of the tools and capabilities we're putting in place, we're coming in with a new branding approach at the end of the year. We have a new wealth builder approach for accumulators. So we're recruiting pretty well. The people we're bringing in are higher productivity. We're attracting a good number of people in the higher end. So I think we're doing the things. What that means quarter-to-quarter, I can't tell you, and I can't dictate sort of the market dynamics of just…

Thank you. Our next question comes from Tom Gallagher from Credit Suisse. Please go ahead. Thomas G. Gallagher - Credit Suisse Securities (USA) LLC (Broker): Good morning. First question on DOL. So, you have had three months or so since that proposal has come out, and I recognize it's still fluid and there might be changes, but just curious if you've done an internal analysis to assess, kind of, the range of potential impacts that you think this might have on your business? That's my first question. I realize you haven't disclosed anything publicly, but have you done something internally yet, in a fairly comprehensive way, to assess potential impact? That's my first question. James M. Cracchiolo - Chairman & Chief Executive Officer: So, I think as – we, as a business look at it, as many have, you don't have clarity yet of what the regulation is. There's an exemption that people say, yes, you can definitely sell an annuity, et cetera. And then some would say, well, maybe you can't. So, at the end of the day, it really depends on how you interpret that. It's not as clear. What I could say to you is this – and this is one, maybe, that would be helpful in you analyzing it. We are a business that serves our clients for all of their life needs, including retirement. So, roughly 50% of our assets in qualified, similar to others in this industry. In that regard, we have a majority of what we do in investment business in the qualified through advisory fees. We're one of the biggest and best-growing in the industry against that and we have strong platform capability to continue to drive that, if that's where the world goes appropriately. But we do look at the needs…

Thank you. And our next question comes from Suneet Kamath from UBS. Please go ahead.

Thanks, good morning. I just want to go to Auto & Home for a second. Just given the consolidation in the property casualty industry as well as your comments about the turnaround maybe taking some time, have you given any more thought to a more, I guess, a sooner exit of that business? James M. Cracchiolo - Chairman & Chief Executive Officer: So, Suneet, as we look at – so let me start with this. I do believe that what we are able to do with the business, because the business is quite strong. We've had the business, evaluated its model. It has one of the best distribution-type platforms. It's one of the lowest-cost providers in the industry, et cetera. It has one of the highest customer satisfaction. In fact, it was rated second from the big rating company that usually you hear about, but you can't just necessarily talk about. So I would just say there are tremendous attributes we already have. So it's not a problem for us to grow what other people have. It's more of we had to put in place a bit enhancements on some of the areas that have changed a little bit in the industry. We're tightening a little underwriting, adjusting pricing, a little more sophistication around that. Getting a little more, what we would call, expedited on some of our claims, adding some resources there, rather than relying on third-party. So there are a number of things that we're doing that are well-known that the industry and we can do. And we have the right resources that we've put in place to get that done. So we actually feel very good about our ability and that this will add to nice earnings next year and the year after, even more substantially. So I think that would be a positive as you think about it, and also a carrier for the business. Now having said that, we do recognize what's happening in the industry. We do recognize the level of consolidation. So we'll always think about how to evaluate that, but again, I don't feel like this is something that wouldn't add tremendous value to Ameriprise one way or the other over time. Walter S. Berman - Chief Financial Officer & Executive Vice President: Suneet, it's Walter. The only thing I just want to clarify is, again, all the initiatives we're talking about are pretty much on track. Certainly, the heavier CAT that we experience that will certainly change the profitability. But the other initiatives and where we think this – and how long it's going to take is pretty much on track. James M. Cracchiolo - Chairman & Chief Executive Officer: Your question is good. It's appropriate. We always do think about and evaluate it. So, again, we'll see as the world in the future.

Yeah, I appreciate those comments. But at the end of the day, it's not making any money. I'm spending a disproportionate amount of my time talking to investors about a business that, frankly, I just don't see why it adds value to your company. It just seems like it doesn't fit. And, like I said, there's consolidation in P&C. I just still scratch my head and try to figure out why it merits the amount of attention that you are spending on it. Walter S. Berman - Chief Financial Officer & Executive Vice President: So, Suneet, I appreciate your perspective. And, certainly, as we look at – this is not the return, not the way we want. But we do believe the basic underlying is quite strong and we're fixing it. And then, as Jim said, it's not core. We'll evaluate it. But it's something that we put the resources in, dedicate it and are turning it around and then have to evaluate it (57:10). This is not the way – the sort of returns and characteristics that we would want from one of our businesses. James M. Cracchiolo - Chairman & Chief Executive Officer: Or have had in this business. Walter S. Berman - Chief Financial Officer & Executive Vice President: That's right. This business has actually, many years ago, it actually had returns. We certainly have seen it and it has substantial potential. Your perspective is certainly is valued. James M. Cracchiolo - Chairman & Chief Executive Officer: Appreciated, right. Thanks.

Okay. Thanks. And then just a couple of quick others. On the JHS Capital Advisors, I'm just curious if – can you give us some background in terms of how that deal came about? Is that something that you approached them? Or did they come to you? Just want to get some sense in terms of how that deal came about. Walter S. Berman - Chief Financial Officer & Executive Vice President: Actually, we have the capability – or we've been looking at many different ways of evaluating the environment, and certainly we have a group of people that look at and assess. And it was a combination, I think. And we assessed both their – in fact, they had an employee base and franchise base. And conversations evolved. And it was really we do look, and we basically reached out to them.

Okay. And then just a follow-up on Yaron's question. I mean, I know we're not talking about DOL on specific terms, but would it be unreasonable to think that if the DOL proposal sort of passes as it's currently drafted that there could be further consolidation in Advice & Wealth Management? James M. Cracchiolo - Chairman & Chief Executive Officer: Yeah, well, listen, I think one of the things that we're finding out there is advisors, even that have moved to a level of independence, et cetera, are recognizing that today's environment is a bit more difficult to do business in, and that they're looking for a firm that would give them the support for a range of things, including having good strong compliance in place. So I mean, we're attracting independents back into our franchisee channel for those reasons. So it's not far to say if expenses and people don't have the right scale or appropriateness to respond to changes that that will cause some further level of consolidation. I would say, again, we've made a lot of investments in our company in technology, in marketing, in compliance, in training, in development support. So, again, I think we're well-situated, if that continues to come about.

All right, thanks.

Thank you. And our last question comes from Erik Bass from Citigroup. Please go ahead.

Hi, thank you. Just wanted to come back to capital management. I was hoping you could update us a little bit on how you are thinking about your excess capital, as it has now been around $2.5 billion for an extended period? I guess, is there a level you intend to keep as either a buffer or as dry powder for M&A? And, if not, what are the factors, other than just your stock price, influencing how quickly you would return that to shareholders? Walter S. Berman - Chief Financial Officer & Executive Vice President: Yeah, okay. It's Walter. The level of capital has been at $2.5 billion, again, as we do – and certainly we generate a substantial amount of capital and then we've been, certainly, using it to return to shareholders. We certainly don't lock and load at $2.5 billion. And it is opportunistic. And, as I indicated, we will certainly start returning more to and we'd evaluate. We have the ability and we're constantly assessing both the environment and the opportunities out there as we evaluate to basically inorganically or organically and return to shareholders. So, I would say that we will start now, as we talked about. It's not our objective to keep $2.5 billion that we will – you should see us deploying that capital. But we do generate a lot and we anticipate still continue to generate a lot as the mix shift and other things take place in the way we manage the required capital. James M. Cracchiolo - Chairman & Chief Executive Officer: And, again, we – if you look over the last number of years, we've been returning more than 100% of our earnings, and that's because we have been able, as Walter said, through the mix shift, through freeing up capital in certain lines and better risk management again (01:01:17) and changing some of our investment portfolio, et cetera. So, I think we've been generating more, even though we've been returning it, which is a good thing.

Certainly, a good problem to have. I guess, is there a level of capital you want to keep for inorganic opportunities, if they do arise? James M. Cracchiolo - Chairman & Chief Executive Officer: Yeah, we always said that we would maintain a level of flexibility. Again, it depends, if there's a strong opportunistic reason that we should buy back a lot more because of the stock – we think the value is way low or something, that's one thing. But on the other side, we always said that we wanted to maintain some flexibility. But that doesn't have to be $2.5 billion for some additional acquisitions or things that come along that may fit in nicely that we can easily duct in and get some good shareholder return. I think the nature of it was that, over the last number of years, we've just been able to free up a lot of capital, even though we've been returning it, and that's why it's been roughly about $2.5 billion.

Got it, thanks. And just one quick question, just on the tax rate, if you could talk about what drove the lower tax rate this quarter? And I guess, Walter, do you think of the 26% rate being sustainable beyond 2015? Or how should we think about taxes going forward? Walter S. Berman - Chief Financial Officer & Executive Vice President: I would – It's strictly 2015. And, certainly, as we go through the year, we evaluate all of the moving parts, as it relates to the business mix, other factors that go in, our tax planning, and the tax rate is – again, quarters, they always deviate a little, but the 26%, we're reasonably comfortable is the achievable number for 2016. And then we will evaluate going forward. That's about as far as I would look at this stage.

Got it. But we should think of it gradually increasing over time, I would assume, as your mix shifts more towards businesses with 35% tax rate. Walter S. Berman - Chief Financial Officer & Executive Vice President: Well, the marginal tax rate, yeah. And, again, with the – it is the 35%, but certainly we do a lot of tax planning with the mix of business we have. So, right now the 26% is there, and then we just evaluate on the marginal as it changes, and then whatever tax planning we do.

Okay. Thank you.

And thank you. This concludes our Q&A session. And thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.