(Updates shares in the second paragraph.)
April 29 (Bloomberg) -- Ameriprise Financial Inc. posted the second-biggest gain in the Standard & Poor’s 500 Index after reporting profit that beat analysts’ estimates and announcing increased share buybacks.
The money manager and insurer jumped 5.8 percent to $109.55 at 4:15 p.m. in New York, the largest increase for the firm since 2012.
First-quarter net income advanced 19 percent from a year earlier to $400 million, the Minneapolis-based company said in a statement late yesterday. Operating profit of $2.04 a share beat the $1.88 average estimate of nine analysts surveyed by Bloomberg. Ameriprise raised its quarterly dividend 12 percent to 58 cents and announced the authorization of $2.5 billion in additional share repurchases over the next two years.
“Capital management continues at a robust pace,” John Nadel, an analyst at Sterne Agee & Leach Inc., wrote in a research note. “The bull case appears well intact.”
Ameriprise’s last buyback authorization, in 2012, was for $2 billion of shares. The biggest gainer in the S&P 500 today was Regeneron Pharmaceuticals Inc., which climbed 6.5 percent