Delaware | 001-32525 | 13-3180631 | ||
(State or other jurisdiction | (Commission | (IRS Employer | ||
of incorporation) | File Number) | Identification No.) |
55 Ameriprise Financial Center Minneapolis, Minnesota | 55474 | |
(Address of principal executive offices) | (Zip Code) |
Exhibit No. | Description | |
Press Release dated January 30, 2019 announcing financial results for the fourth quarter of 2018 | ||
Statistical Supplement for the quarterly period ended December 31, 2018 |
AMERIPRISE FINANCIAL, INC. | ||
(Registrant) | ||
Date: January 30, 2019 | By | /s/ Walter S. Berman |
Walter S. Berman | ||
Executive Vice President and | ||
Chief Financial Officer |
Page | ||
Ameriprise Financial, Inc. | ||
Statistical Supplement Presentation | 4 | |
Consolidated GAAP Income Statements | 5 | |
Consolidated Adjusted Operating Results and Highlights | 6 | |
Common Share and Capital Summary | 8 | |
Segment Summary | 10 | |
Advice & Wealth Management Segment | ||
Segment Adjusted Operating Income Statements | 12 | |
Segment Metrics | 13 | |
Asset Management Segment | ||
Segment Adjusted Operating Income Statements | 15 | |
Segment Metrics | 16 | |
Global Asset Management Products | 17 | |
Retail Fund Performance - Columbia | 18 | |
Retail Fund Performance - Threadneedle | 19 | |
Annuities Segment | ||
Segment Adjusted Operating Income Statements | 21 | |
Segment Metrics | 22 | |
Protection Segment | ||
Segment Adjusted Operating Income Statements | 24 | |
Segment Metrics | 25 | |
Corporate & Other Segment | ||
Segment Adjusted Operating Income Statements | 27 | |
Eliminations | ||
Adjusted Operating Income Statements | 28 | |
Balance Sheet and Ratings Information | ||
Consolidated Balance Sheets | 30 | |
Capital and Ratings Information | 31 | |
Investments | 32 | |
Non-GAAP Financial Information | 33 | |
Glossary of Selected Terminology | ||
Glossary of Selected Terminology - Segments | 34 | |
Glossary of Selected Terminology | 35 | |
Exhibit A | ||
Disclosed Items | 38 | |
Exhibit B | ||
Corporate & Other Segment Details | 44 | |
Exhibit C | ||
Non-GAAP Financial Measure Reconciliations | 47 | |
Exhibit D | ||
Revenue Detail by Product | 50 |
Ameriprise Financial, Inc. ("Ameriprise Financial" or "the Company") prepares its financial statements in accordance with generally accepted accounting principles ("GAAP"). Management believes that adjusted operating measures, which exclude net realized investment gains or losses, net of deferred sales inducement costs ("DSIC") and deferred acquisition costs ("DAC") amortization, unearned revenue amortization and the reinsurance accrual; the market impact on variable annuity guaranteed benefits, net of hedges and the related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact on fixed index annuity benefits, net of hedges and the related DAC amortization; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration and restructuring charges; income (loss) from discontinued operations; and the impact of consolidating certain investment entities ("CIEs"), best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis. The Company also uses a number of non-GAAP financial measures to evaluate its financial performance on a basis comparable to that used by some securities analysts and investors. However, these measures are not a substitute for GAAP. Therefore, reconciliations to GAAP measures are provided on page 6 and in Exhibit C "Non-GAAP Financial Measure Reconciliations" on pages 47 and 48. |
The market impact on variable annuity guaranteed benefits, fixed index annuity benefits and indexed universal life benefits includes changes in liability values caused by changes in financial market conditions, net of changes in economic hedge values. The market impact also includes certain valuation adjustments made in accordance with Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value Measurements and Disclosures ("ASC 820"), including the impact on liability values of discounting projected benefits to reflect a current estimate of RiverSource Life Insurance Company's nonperformance spread. Further, the market impact is net of related impacts on DAC, DSIC and unearned revenue amortization as well as a reinsurance accrual for indexed universal life. The market impact relates to guaranteed minimum accumulation benefits, non-life contingent guaranteed minimum withdrawal benefits, fixed index annuity benefits and indexed universal life benefits accounted for at fair value as embedded derivatives. |
Adjusted operating earnings is the measure of segment profit or loss management uses to evaluate segment performance. Adjusted operating earnings should not be viewed as a substitute for GAAP income from continuing operations before income tax provision. Management believes the presentation of segment adjusted operating earnings as we measure it for management purposes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitating a more meaningful trend analysis. |
In addition, management uses net pretax adjusted operating margin in the Asset Management segment to evaluate segment performance on a basis comparable to other asset managers. In the Asset Management segment, adjusted operating revenues are adjusted to exclude distribution pass through revenues and subadvisory and other pass through revenues, and adjusted operating earnings are adjusted to exclude adjusted operating net investment income and amortization of intangibles. |
Prior Year Comparisons | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-Date | Qtr Chg - 4Q | YTD Chg - 4Q | Seq Qtr Chg - 4Q | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except per share amounts, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | Diff. | % | Diff. | % | Diff. | % | ||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||
Management and financial advice fees | $ | 1,721 | $ | 1,669 | $ | 1,691 | $ | 1,739 | $ | 1,677 | $ | 6,415 | $ | 6,776 | $ | (44 | ) | (3 | )% | $ | 361 | 6 | % | $ | (62 | ) | (4 | )% | |||||||||||||||||||||
Distribution fees | 456 | 468 | 465 | 470 | 474 | 1,757 | 1,877 | 18 | 4 | % | 120 | 7 | % | 4 | 1 | % | |||||||||||||||||||||||||||||||||
Net investment income | 355 | 396 | 419 | 386 | 395 | 1,509 | 1,596 | 40 | 11 | % | 87 | 6 | % | 9 | 2 | % | |||||||||||||||||||||||||||||||||
Premiums | 359 | 343 | 357 | 363 | 363 | 1,394 | 1,426 | 4 | 1 | % | 32 | 2 | % | — | — | % | |||||||||||||||||||||||||||||||||
Other revenues | 303 | 308 | 284 | 358 | 299 | 1,105 | 1,249 | (4 | ) | (1 | )% | 144 | 13 | % | (59 | ) | (16 | )% | |||||||||||||||||||||||||||||||
Total revenues | 3,194 | 3,184 | 3,216 | 3,316 | 3,208 | 12,180 | 12,924 | 14 | — | % | 744 | 6 | % | (108 | ) | (3 | )% | ||||||||||||||||||||||||||||||||
Banking and deposit interest expense | 14 | 16 | 20 | 24 | 29 | 48 | 89 | 15 | # | 41 | 85 | % | 5 | 21 | % | ||||||||||||||||||||||||||||||||||
Total net revenues | 3,180 | 3,168 | 3,196 | 3,292 | 3,179 | 12,132 | 12,835 | (1 | ) | — | % | 703 | 6 | % | (113 | ) | (3 | )% | |||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||
Distribution expenses | 893 | 905 | 902 | 920 | 910 | 3,397 | 3,637 | 17 | 2 | % | 240 | 7 | % | (10 | ) | (1 | )% | ||||||||||||||||||||||||||||||||
Interest credited to fixed accounts | 147 | 141 | 180 | 178 | 175 | 656 | 674 | 28 | 19 | % | 18 | 3 | % | (3 | ) | (2 | )% | ||||||||||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | 581 | 494 | 635 | 729 | 444 | 2,233 | 2,302 | (137 | ) | (24 | )% | 69 | 3 | % | (285 | ) | (39 | )% | |||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | 78 | 92 | 63 | 25 | 142 | 267 | 322 | 64 | 82 | % | 55 | 21 | % | 117 | # | ||||||||||||||||||||||||||||||||||
Interest and debt expense | 53 | 51 | 80 | 50 | 64 | 207 | 245 | 11 | 21 | % | 38 | 18 | % | 14 | 28 | % | |||||||||||||||||||||||||||||||||
General and administrative expense | 833 | 789 | 788 | 802 | 792 | 3,158 | 3,171 | (41 | ) | (5 | )% | 13 | — | % | (10 | ) | (1 | )% | |||||||||||||||||||||||||||||||
Total expenses | 2,585 | 2,472 | 2,648 | 2,704 | 2,527 | 9,918 | 10,351 | (58 | ) | (2 | )% | 433 | 4 | % | (177 | ) | (7 | )% | |||||||||||||||||||||||||||||||
Pretax income | 595 | 696 | 548 | 588 | 652 | 2,214 | 2,484 | 57 | 10 | % | 270 | 12 | % | 64 | 11 | % | |||||||||||||||||||||||||||||||||
Income tax provision | 418 | 102 | 86 | 85 | 113 | 734 | 386 | (305 | ) | (73 | )% | (348 | ) | (47 | )% | 28 | 33 | % | |||||||||||||||||||||||||||||||
Net income | $ | 177 | $ | 594 | $ | 462 | $ | 503 | $ | 539 | $ | 1,480 | $ | 2,098 | $ | 362 | # | $ | 618 | 42 | % | $ | 36 | 7 | % | ||||||||||||||||||||||||
Net Investment Income | |||||||||||||||||||||||||||||||||||||||||||||||||
Investment income on fixed maturities | $ | 337 | $ | 329 | $ | 334 | $ | 339 | $ | 351 | $ | 1,349 | $ | 1,353 | $ | 14 | 4 | % | $ | 4 | — | % | $ | 12 | 4 | % | |||||||||||||||||||||||
Realized investment gains (losses) | 11 | 6 | 5 | 4 | (5 | ) | 46 | 10 | (16 | ) | # | (36 | ) | (78 | )% | (9 | ) | # | |||||||||||||||||||||||||||||||
Affordable housing | (58 | ) | (11 | ) | (14 | ) | (24 | ) | (9 | ) | (100 | ) | (58 | ) | 49 | 84 | % | 42 | 42 | % | 15 | 63 | % | ||||||||||||||||||||||||||
Other (including seed money) | 38 | 46 | 43 | 43 | 22 | 108 | 154 | (16 | ) | (42 | )% | 46 | 43 | % | (21 | ) | (49 | )% | |||||||||||||||||||||||||||||||
Consolidated investment entities | 27 | 26 | 51 | 24 | 36 | 106 | 137 | 9 | 33 | % | 31 | 29 | % | 12 | 50 | % | |||||||||||||||||||||||||||||||||
Total net investment income | $ | 355 | $ | 396 | $ | 419 | $ | 386 | $ | 395 | $ | 1,509 | $ | 1,596 | $ | 40 | 11 | % | $ | 87 | 6 | % | $ | 9 | 2 | % | |||||||||||||||||||||||
Earnings Per Share | |||||||||||||||||||||||||||||||||||||||||||||||||
Basic earnings per share | $ | 1.17 | $ | 3.97 | $ | 3.14 | $ | 3.48 | $ | 3.81 | $ | 9.60 | $ | 14.41 | $ | 2.64 | # | $ | 4.81 | 50 | % | $ | 0.33 | 9 | % | ||||||||||||||||||||||||
Earnings per diluted share | $ | 1.15 | $ | 3.91 | $ | 3.10 | $ | 3.43 | $ | 3.76 | $ | 9.44 | $ | 14.20 | $ | 2.61 | # | $ | 4.76 | 50 | % | $ | 0.33 | 10 | % | ||||||||||||||||||||||||
Earnings per diluted share growth | (53.3 | )% | 55.2 | % | 24.0 | % | 5.2 | % | NM | 20.9 | % | 50.4 | % | NM | 29.6 | % | NM | ||||||||||||||||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||||||||||||||||||||||||||||
Basic weighted average common shares outstanding | 151.0 | 149.5 | 147.0 | 144.4 | 141.5 | 154.1 | 145.6 | (9.5 | ) | (6 | )% | (8.5 | ) | (6 | )% | (2.9 | ) | (2 | )% | ||||||||||||||||||||||||||||||
Effect of potentially dilutive nonqualified stock options and other share-based awards | 2.8 | 2.6 | 2.0 | 2.1 | 1.7 | 2.6 | 2.1 | (1.1 | ) | (39 | )% | (0.5 | ) | (19 | )% | (0.4 | ) | (19 | )% | ||||||||||||||||||||||||||||||
Diluted weighted average common shares outstanding | 153.8 | 152.1 | 149.0 | 146.5 | 143.2 | 156.7 | 147.7 | (10.6 | ) | (7 | )% | (9.0 | ) | (6 | )% | (3.3 | ) | (2 | )% | ||||||||||||||||||||||||||||||
Metrics | |||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue growth | 2.9 | % | 8.3 | % | 6.1 | % | 9.2 | % | — | % | 2.8 | % | 5.8 | % | (2.9 | )% | 3.0 | % | (9.2 | )% | |||||||||||||||||||||||||||||
Pretax income margin | 18.7 | % | 22.0 | % | 17.1 | % | 17.9 | % | 20.5 | % | 18.2 | % | 19.4 | % | 1.8 | % | 1.2 | % | 2.6 | % | |||||||||||||||||||||||||||||
Effective tax rate | 70.3 | % | 14.7 | % | 15.7 | % | 14.4 | % | 17.3 | % | 33.1 | % | 15.5 | % | (53.0 | )% | (17.6 | )% | 2.9 | % | |||||||||||||||||||||||||||||
Total equity / outstanding shares (1) | $ | 39.91 | $ | 39.38 | $ | 38.71 | $ | 39.26 | $ | 40.03 | $ | 39.91 | $ | 40.03 | $ | 0.12 | — | % | $ | 0.12 | — | % | $ | 0.77 | 2 | % | |||||||||||||||||||||||
Total equity excluding AOCI / outstanding shares (2)(3) | $ | 38.39 | $ | 39.41 | $ | 39.94 | $ | 40.96 | $ | 42.11 | $ | 38.39 | $ | 42.11 | $ | 3.72 | 10 | % | $ | 3.72 | 10 | % | $ | 1.15 | 3 | % |
(1) | Calculated as total equity divided by common shares outstanding plus common stock equivalents outstanding at period end. |
(2) | Calculated as total equity excluding AOCI divided by common shares outstanding plus common stock equivalents outstanding at period end. |
(3) | See non-GAAP financial information on pg 33. Non-GAAP financial measure reconciliations can be found on pages 47 and 48. |
NM Not Meaningful | |
# Variance equal to or greater than 100%. |
Prior Year Comparisons | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-Date | Qtr Chg - 4Q | YTD Chg - 4Q | Seq Qtr Chg - 4Q | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions except per share amounts, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | Diff. | % | Diff. | % | Diff. | % | ||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||
Total net revenues | $ | 3,180 | $ | 3,168 | $ | 3,196 | $ | 3,292 | $ | 3,179 | $ | 12,132 | $ | 12,835 | $ | (1 | ) | — | % | $ | 703 | 6 | % | $ | (113 | ) | (3 | )% | |||||||||||||||||||||
Less revenues attributable to the CIEs | 24 | 22 | 49 | 22 | 34 | 94 | 127 | 10 | 42 | % | 33 | 35 | % | 12 | 55 | % | |||||||||||||||||||||||||||||||||
Less net realized investment gains (losses) (1) | 11 | 6 | 5 | 4 | (5 | ) | 46 | 10 | (16 | ) | # | (36 | ) | (78 | )% | (9 | ) | # | |||||||||||||||||||||||||||||||
Less market impact on indexed universal life benefits (1) | 8 | 13 | (10 | ) | (8 | ) | (2 | ) | 1 | (7 | ) | (10 | ) | # | (8 | ) | # | 6 | 75 | % | |||||||||||||||||||||||||||||
Less market impact of hedges on investments | 6 | 16 | 5 | 6 | (16 | ) | (2 | ) | 11 | (22 | ) | # | 13 | # | (22 | ) | # | ||||||||||||||||||||||||||||||||
Adjusted operating total net revenues (2) | $ | 3,131 | $ | 3,111 | $ | 3,147 | $ | 3,268 | $ | 3,168 | $ | 11,993 | $ | 12,694 | $ | 37 | 1 | % | $ | 701 | 6 | % | $ | (100 | ) | (3 | )% | ||||||||||||||||||||||
Earnings | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 177 | $ | 594 | $ | 462 | $ | 503 | $ | 539 | $ | 1,480 | $ | 2,098 | $ | 362 | # | $ | 618 | 42 | % | $ | 36 | 7 | % | ||||||||||||||||||||||||
Less net income (loss) attributable to the CIEs | — | — | — | — | (1 | ) | 1 | (1 | ) | (1 | ) | — | % | (2 | ) | # | (1 | ) | — | % | |||||||||||||||||||||||||||||
Integration/restructuring charges (3) | 4 | 3 | 4 | 9 | 3 | 5 | 19 | (1 | ) | (25 | )% | 14 | # | (6 | ) | (67 | )% | ||||||||||||||||||||||||||||||||
Market impact on variable annuity guaranteed benefits (1)(3) | 34 | 5 | 80 | 45 | (99 | ) | 232 | 31 | (133 | ) | # | (201 | ) | (87 | )% | (144 | ) | # | |||||||||||||||||||||||||||||||
Market impact on fixed index annuity benefits (1)(3) | — | — | — | — | (1 | ) | — | (1 | ) | (1 | ) | — | % | (1 | ) | — | % | (1 | ) | — | % | ||||||||||||||||||||||||||||
Market impact on indexed universal life benefits (1)(3) | (20 | ) | (25 | ) | 20 | 13 | 9 | (4 | ) | 17 | 29 | # | 21 | # | (4 | ) | (31 | )% | |||||||||||||||||||||||||||||||
Market impact of hedges on investments (3) | (6 | ) | (16 | ) | (5 | ) | (6 | ) | 16 | 2 | (11 | ) | 22 | # | (13 | ) | # | 22 | # | ||||||||||||||||||||||||||||||
Less net realized investment gains (losses) (1)(3) | 11 | 6 | 5 | 4 | (6 | ) | 44 | 9 | (17 | ) | # | (35 | ) | (80 | )% | (10 | ) | # | |||||||||||||||||||||||||||||||
Tax effect of adjustments (4) | — | 8 | (20 | ) | (12 | ) | 14 | (67 | ) | (10 | ) | 14 | — | % | 57 | 85 | % | 26 | # | ||||||||||||||||||||||||||||||
Adjusted operating earnings (2) | $ | 178 | $ | 563 | $ | 536 | $ | 548 | $ | 488 | $ | 1,603 | $ | 2,135 | $ | 310 | # | $ | 532 | 33 | % | $ | (60 | ) | (11 | )% | |||||||||||||||||||||||
Pretax Earnings | |||||||||||||||||||||||||||||||||||||||||||||||||
Pretax income | $ | 595 | $ | 696 | $ | 548 | $ | 588 | $ | 652 | $ | 2,214 | $ | 2,484 | $ | 57 | 10 | % | $ | 270 | 12 | % | $ | 64 | 11 | % | |||||||||||||||||||||||
Less pretax income (loss) attributable to the CIEs | — | — | — | — | (1 | ) | 2 | (1 | ) | (1 | ) | — | % | (3 | ) | # | (1 | ) | — | % | |||||||||||||||||||||||||||||
Integration/restructuring charges | 4 | 3 | 4 | 9 | 3 | 5 | 19 | (1 | ) | (25 | )% | 14 | # | (6 | ) | (67 | )% | ||||||||||||||||||||||||||||||||
Market impact on variable annuity guaranteed benefits (1) | 34 | 5 | 80 | 45 | (99 | ) | 232 | 31 | (133 | ) | # | (201 | ) | (87 | )% | (144 | ) | # | |||||||||||||||||||||||||||||||
Market impact on fixed index annuity benefits (1) | — | — | — | — | (1 | ) | — | (1 | ) | (1 | ) | — | % | (1 | ) | — | % | (1 | ) | — | % | ||||||||||||||||||||||||||||
Market impact on indexed universal life benefits (1) | (20 | ) | (25 | ) | 20 | 13 | 9 | (4 | ) | 17 | 29 | # | 21 | # | (4 | ) | (31 | )% | |||||||||||||||||||||||||||||||
Market impact of hedges on investments | (6 | ) | (16 | ) | (5 | ) | (6 | ) | 16 | 2 | (11 | ) | 22 | # | (13 | ) | # | 22 | # | ||||||||||||||||||||||||||||||
Less net realized investment gains (losses) (1) | 11 | 6 | 5 | 4 | (6 | ) | 44 | 9 | (17 | ) | # | (35 | ) | (80 | )% | (10 | ) | # | |||||||||||||||||||||||||||||||
Pretax adjusted operating earnings (2) | $ | 596 | $ | 657 | $ | 642 | $ | 645 | $ | 587 | $ | 2,403 | $ | 2,531 | $ | (9 | ) | (2 | )% | $ | 128 | 5 | % | $ | (58 | ) | (9 | )% | |||||||||||||||||||||
Pretax Adjusted Operating Margin (2)(5) | 19.0 | % | 21.1 | % | 20.4 | % | 19.7 | % | 18.5 | % | 20.0 | % | 19.9 | % | (0.5 | )% | (0.1 | )% | (1.2 | )% | |||||||||||||||||||||||||||||
Adjusted Operating Effective Tax Rate (2)(6) | 70.1 | % | 14.3 | % | 16.5 | % | 15.0 | % | 16.9 | % | 33.3 | % | 15.6 | % | (53.2 | )% | (17.7 | )% | 1.9 | % | |||||||||||||||||||||||||||||
Weighted Average Common Shares Outstanding | |||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 151.0 | 149.5 | 147.0 | 144.4 | 141.5 | 154.1 | 145.6 | (9.5 | ) | (6 | )% | (8.5 | ) | (6 | )% | (2.9 | ) | (2 | )% | ||||||||||||||||||||||||||||||
Diluted | 153.8 | 152.1 | 149.0 | 146.5 | 143.2 | 156.7 | 147.7 | (10.6 | ) | (7 | )% | (9.0 | ) | (6 | )% | (3.3 | ) | (2 | )% | ||||||||||||||||||||||||||||||
Adjusted Operating Earnings Per Share (2) | |||||||||||||||||||||||||||||||||||||||||||||||||
Basic adjusted operating earnings per share | $ | 1.18 | $ | 3.77 | $ | 3.65 | $ | 3.80 | $ | 3.45 | $ | 10.40 | $ | 14.66 | $ | 2.27 | # | $ | 4.26 | 41 | % | $ | (0.35 | ) | (9 | )% | |||||||||||||||||||||||
Adjusted operating earnings per diluted share | $ | 1.16 | $ | 3.70 | $ | 3.60 | $ | 3.74 | $ | 3.41 | $ | 10.23 | $ | 14.45 | $ | 2.25 | # | $ | 4.22 | 41 | % | $ | (0.33 | ) | (9 | )% | |||||||||||||||||||||||
Adjusted operating earnings per diluted share excluding items (7) | $ | 3.15 | $ | 3.67 | $ | 3.56 | $ | 3.92 | $ | 3.80 | $ | 11.75 | $ | 14.94 | $ | 0.65 | 21 | % | $ | 3.19 | 27 | % | $ | (0.12 | ) | (3 | )% | ||||||||||||||||||||||
Return on Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Return on equity excluding AOCI (2)(6) | 24.8 | % | 28.3 | % | 29.6 | % | 29.6 | % | 36.0 | % | 24.8 | % | 36.0 | % | 11.2 | % | 11.2 | % | 6.4 | % | |||||||||||||||||||||||||||||
Adjusted operating return on equity excluding AOCI (2)(6) | 26.9 | % | 29.3 | % | 31.1 | % | 31.2 | % | 36.6 | % | 26.9 | % | 36.6 | % | 9.7 | % | 9.7 | % | 5.4 | % | |||||||||||||||||||||||||||||
Adjusted operating return on equity excluding AOCI and items (2)(6)(7) | 30.9 | % | 33.5 | % | 35.4 | % | 36.7 | % | 37.8 | % | 30.9 | % | 37.8 | % | 6.9 | % | 6.9 | % | 1.1 | % |
(1) | Adjusted operating adjustments for net realized investment gains (losses), market impact on indexed universal life benefits, market impact on fixed index annuity benefits and market impact on variable annuity guaranteed benefits are net of the following impacts, as applicable: hedges, DAC and DSIC amortization, unearned revenue amortization and the reinsurance accrual. |
(2) | See non-GAAP financial information on pg 33. |
(3) | Pretax adjusted operating adjustments. |
(4) | Calculated using the statutory tax rate of 35% in 2017 and 21% in 2018. |
(5) | Defined as pretax adjusted operating earnings as a percentage of adjusted operating total net revenues. |
(6) | Non-GAAP financial measure reconciliations can be found on pg 47. |
(7) | Excludes the following items: unlocking impacts, which reflect the company's annual review of insurance and annuity valuation assumptions and model changes and the Long Term Care gross premium valuation in the third quarter of each year; the one-time negative impact from the enactment of the Tax Cuts and Jobs Act in the fourth quarter of 2017; mean reversion related items that are influenced by markets - change in DAC and DSIC amortization and change in reserve accrual for SOP 03-1 reserves for living benefit guarantees. |
# Variance equal to or greater than 100%. |
Prior Year Comparisons | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-Date | Qtr Chg - 4Q | YTD Chg - 4Q | Seq Qtr Chg - 4Q | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions except per share amounts, headcount and where noted, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | Diff. | % | Diff. | % | Diff. | % | ||||||||||||||||||||||||||||||||||||
Book Value | |||||||||||||||||||||||||||||||||||||||||||||||||
Total equity excluding CIEs / outstanding shares (1)(2) | $ | 39.91 | $ | 39.38 | $ | 38.70 | $ | 39.27 | $ | 40.02 | $ | 39.91 | $ | 40.02 | $ | 0.11 | — | % | $ | 0.11 | — | % | $ | 0.75 | 2 | % | |||||||||||||||||||||||
Total equity excluding CIEs and AOCI / outstanding shares (1)(3) | $ | 38.38 | $ | 39.41 | $ | 39.93 | $ | 40.96 | $ | 42.11 | $ | 38.38 | $ | 42.11 | $ | 3.73 | 10 | % | $ | 3.73 | 10 | % | $ | 1.15 | 3 | % | |||||||||||||||||||||||
Adjusted Operating Metrics | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted operating total net revenue growth: Target 6 - 8% | 5.6 | % | 7.8 | % | 5.7 | % | 8.9 | % | 1.2 | % | 3.0 | % | 5.8 | % | (4.4 | )% | 2.8 | % | (7.7 | )% | |||||||||||||||||||||||||||||
Adjusted operating earnings per diluted share growth: Target 12 - 15% | (57.4 | )% | 37.0 | % | 28.6 | % | 5.4 | % | NM | 20.6 | % | 41.3 | % | NM | 20.7 | % | NM | ||||||||||||||||||||||||||||||||
Adjusted operating return on equity excluding AOCI: Target 19 - 23% (1) | 26.9 | % | 29.3 | % | 31.1 | % | 31.2 | % | 36.6 | % | 26.9 | % | 36.6 | % | 9.7 | % | 9.7 | % | 5.4 | % | |||||||||||||||||||||||||||||
Debt to Capital | |||||||||||||||||||||||||||||||||||||||||||||||||
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital | 32.5 | % | 33.0 | % | 33.8 | % | 33.8 | % | 33.9 | % | 32.5 | % | 33.9 | % | 1.4 | % | 1.4 | % | 0.1 | % | |||||||||||||||||||||||||||||
Goodwill and Intangible Assets | $ | 2,027 | $ | 2,034 | $ | 2,009 | $ | 1,998 | $ | 1,987 | $ | 2,027 | $ | 1,987 | $ | (40 | ) | (2 | )% | $ | (40 | ) | (2 | )% | $ | (11 | ) | (1 | )% | ||||||||||||||||||||
Assets Under Management and Administration | |||||||||||||||||||||||||||||||||||||||||||||||||
Advice & Wealth Management AUM | $ | 246,715 | $ | 249,565 | $ | 257,227 | $ | 270,571 | $ | 249,910 | $ | 246,715 | $ | 249,910 | $ | 3,195 | 1 | % | $ | 3,195 | 1 | % | $ | (20,661 | ) | (8 | )% | ||||||||||||||||||||||
Asset Management AUM | 494,558 | 485,315 | 482,072 | 485,352 | 430,650 | 494,558 | 430,650 | (63,908 | ) | (13 | )% | (63,908 | ) | (13 | )% | (54,702 | ) | (11 | )% | ||||||||||||||||||||||||||||||
Corporate AUM | 41 | 39 | 39 | 39 | 39 | 41 | 39 | (2 | ) | (5 | )% | (2 | ) | (5 | )% | — | — | % | |||||||||||||||||||||||||||||||
Eliminations | (27,039 | ) | (26,313 | ) | (28,705 | ) | (29,292 | ) | (26,433 | ) | (27,039 | ) | (26,433 | ) | 606 | 2 | % | 606 | 2 | % | 2,859 | 10 | % | ||||||||||||||||||||||||||
Total Assets Under Management | 714,275 | 708,606 | 710,633 | 726,670 | 654,166 | 714,275 | 654,166 | (60,109 | ) | (8 | )% | (60,109 | ) | (8 | )% | (72,504 | ) | (10 | )% | ||||||||||||||||||||||||||||||
Total Assets Under Administration | 182,767 | 178,621 | 180,278 | 186,786 | 168,566 | 182,767 | 168,566 | (14,201 | ) | (8 | )% | (14,201 | ) | (8 | )% | (18,220 | ) | (10 | )% | ||||||||||||||||||||||||||||||
Total AUM and AUA | $ | 897,042 | $ | 887,227 | $ | 890,911 | $ | 913,456 | $ | 822,732 | $ | 897,042 | $ | 822,732 | $ | (74,310 | ) | (8 | )% | $ | (74,310 | ) | (8 | )% | $ | (90,724 | ) | (10 | )% | ||||||||||||||||||||
Business Metrics | |||||||||||||||||||||||||||||||||||||||||||||||||
Total Ameriprise client assets | $ | 559,692 | $ | 556,694 | $ | 565,726 | $ | 587,968 | $ | 538,978 | $ | 559,692 | $ | 538,978 | $ | (20,714 | ) | (4 | )% | $ | (20,714 | ) | (4 | )% | $ | (48,990 | ) | (8 | )% | ||||||||||||||||||||
Total financial advisors | 9,896 | 9,881 | 9,906 | 9,933 | 9,931 | 9,896 | 9,931 | 35 | — | % | 35 | — | % | (2 | ) | — | % | ||||||||||||||||||||||||||||||||
Net Flows and Net Deposits | |||||||||||||||||||||||||||||||||||||||||||||||||
Advisor wrap | $ | 5,013 | $ | 5,689 | $ | 5,260 | $ | 5,664 | $ | 4,507 | $ | 19,533 | $ | 21,120 | $ | (506 | ) | (10 | )% | $ | 1,587 | 8 | % | $ | (1,157 | ) | (20 | )% | |||||||||||||||||||||
Asset Management | $ | 2,357 | $ | (7,659 | ) | $ | (1,509 | ) | $ | (7,345 | ) | $ | (4,667 | ) | $ | (16,684 | ) | $ | (21,180 | ) | $ | (7,024 | ) | # | $ | (4,496 | ) | (27 | )% | $ | 2,678 | 36 | % | ||||||||||||||||
Annuities (4) | $ | (1,144 | ) | $ | (1,162 | ) | $ | (984 | ) | $ | (1,025 | ) | $ | (1,015 | ) | $ | (4,830 | ) | $ | (4,186 | ) | $ | 129 | 11 | % | $ | 644 | 13 | % | $ | 10 | 1 | % | ||||||||||||||||
Variable universal life / Universal life | $ | (46 | ) | $ | (82 | ) | $ | (65 | ) | $ | (78 | ) | $ | (56 | ) | $ | (244 | ) | $ | (281 | ) | $ | (10 | ) | (22 | )% | $ | (37 | ) | (15 | )% | $ | 22 | 28 | % | ||||||||||||||
S&P 500 | |||||||||||||||||||||||||||||||||||||||||||||||||
Daily average | 2,605 | 2,733 | 2,704 | 2,849 | 2,689 | 2,448 | 2,744 | 84 | 3 | % | 296 | 12 | % | (160 | ) | (6 | )% | ||||||||||||||||||||||||||||||||
Period end | 2,674 | 2,641 | 2,718 | 2,914 | 2,507 | 2,674 | 2,507 | (167 | ) | (6 | )% | (167 | ) | (6 | )% | (407 | ) | (14 | )% | ||||||||||||||||||||||||||||||
Weighted Equity Index (WEI) (5) | |||||||||||||||||||||||||||||||||||||||||||||||||
Daily average | 1,901 | 1,984 | 1,965 | 2,042 | 1,905 | 1,788 | 1,974 | 4 | — | % | 186 | 10 | % | (137 | ) | (7 | )% | ||||||||||||||||||||||||||||||||
Period end | 1,948 | 1,923 | 1,967 | 2,077 | 1,776 | 1,948 | 1,776 | (172 | ) | (9 | )% | (172 | ) | (9 | )% | (301 | ) | (14 | )% |
(1) | See non-GAAP financial information on pg 33. Non-GAAP financial measure reconciliations can be found on pages 47 and 48. |
(2) | Calculated as total equity excluding CIEs divided by common shares outstanding plus common stock equivalents outstanding at period end. |
(3) | Calculated as total equity excluding CIEs and AOCI divided by common shares outstanding plus common stock equivalents outstanding at period end. |
(4) | Excludes payout annuities. |
(5) | Weighted Equity Index is an Ameriprise calculated proxy for equity market movements calculated using a weighted average of the S&P 500, Russell 2000, Russell Midcap and MSCI EAFE indices based on North America distributed equity assets. |
NM Not Meaningful | |
# Variance equal to or greater than 100%. |
Prior Year Comparisons | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-Date | Qtr Chg - 4Q | YTD Chg - 4Q | Seq Qtr Chg - 4Q | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions unless otherwise noted, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | Diff. | % | Diff. | % | Diff. | % | ||||||||||||||||||||||||||||||||||||
Common shares | |||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | 148.3 | 146.6 | 145.0 | 142.2 | 139.8 | 154.8 | 146.6 | (8.5 | ) | (6 | )% | (8.2 | ) | (5 | )% | (2.4 | ) | (2 | )% | ||||||||||||||||||||||||||||||
Repurchases | (1.9 | ) | (2.4 | ) | (2.9 | ) | (2.4 | ) | (3.6 | ) | (9.9 | ) | (11.3 | ) | (1.7 | ) | (89 | )% | (1.4 | ) | (14 | )% | (1.2 | ) | (50 | )% | |||||||||||||||||||||||
Issuances | 0.5 | 1.2 | 0.2 | 0.1 | 0.1 | 4.0 | 1.6 | (0.4 | ) | (80 | )% | (2.4 | ) | (60 | )% | — | — | % | |||||||||||||||||||||||||||||||
Other | (0.3 | ) | (0.4 | ) | (0.1 | ) | (0.1 | ) | — | (2.3 | ) | (0.6 | ) | 0.3 | # | 1.7 | 74 | % | 0.1 | # | |||||||||||||||||||||||||||||
Total common shares outstanding | 146.6 | 145.0 | 142.2 | 139.8 | 136.3 | 146.6 | 136.3 | (10.3 | ) | (7 | )% | (10.3 | ) | (7 | )% | (3.5 | ) | (3 | )% | ||||||||||||||||||||||||||||||
Restricted stock units | 3.6 | 3.3 | 3.3 | 3.3 | 3.3 | 3.6 | 3.3 | (0.3 | ) | (8 | )% | (0.3 | ) | (8 | )% | — | — | % | |||||||||||||||||||||||||||||||
Total basic common shares outstanding | 150.2 | 148.3 | 145.5 | 143.1 | 139.6 | 150.2 | 139.6 | (10.6 | ) | (7 | )% | (10.6 | ) | (7 | )% | (3.5 | ) | (2 | )% | ||||||||||||||||||||||||||||||
Total potentially dilutive shares | 2.9 | 2.3 | 2.0 | 2.1 | 1.3 | 2.9 | 1.3 | (1.6 | ) | (55 | )% | (1.6 | ) | (55 | )% | (0.8 | ) | (38 | )% | ||||||||||||||||||||||||||||||
Total diluted shares | 153.1 | 150.6 | 147.5 | 145.2 | 140.9 | 153.1 | 140.9 | (12.2 | ) | (8 | )% | (12.2 | ) | (8 | )% | (4.3 | ) | (3 | )% | ||||||||||||||||||||||||||||||
Capital Returned to Shareholders | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid | $ | 123 | $ | 125 | $ | 132 | $ | 131 | $ | 128 | $ | 502 | $ | 516 | $ | 5 | 4 | % | $ | 14 | 3 | % | $ | (3 | ) | (2 | )% | ||||||||||||||||||||||
Common stock share repurchases | $ | 302 | $ | 387 | $ | 400 | $ | 353 | $ | 436 | $ | 1,344 | $ | 1,576 | $ | 134 | 44 | % | $ | 232 | 17 | % | $ | 83 | 24 | % | |||||||||||||||||||||||
Allocated Capital (1) | |||||||||||||||||||||||||||||||||||||||||||||||||
Advice & Wealth Management | $ | 710 | $ | 718 | $ | 738 | $ | 765 | $ | 742 | $ | 710 | $ | 742 | $ | 32 | 5 | % | $ | 32 | 5 | % | $ | (23 | ) | (3 | )% | ||||||||||||||||||||||
Asset Management | 1,868 | 1,871 | 1,867 | 1,858 | 1,848 | 1,868 | 1,848 | (20 | ) | (1 | )% | (20 | ) | (1 | )% | (10 | ) | (1 | )% | ||||||||||||||||||||||||||||||
Annuities | 1,933 | 1,909 | 1,911 | 1,886 | 1,892 | 1,933 | 1,892 | (41 | ) | (2 | )% | (41 | ) | (2 | )% | 6 | — | % | |||||||||||||||||||||||||||||||
Protection | 1,339 | 1,465 | 1,455 | 1,385 | 1,477 | 1,339 | 1,477 | 138 | 10 | % | 138 | 10 | % | 92 | 7 | % | |||||||||||||||||||||||||||||||||
Corporate & Other | 2,765 | 2,731 | 2,689 | 2,817 | 2,769 | 2,765 | 2,769 | 4 | — | % | 4 | — | % | (48 | ) | (2 | )% | ||||||||||||||||||||||||||||||||
Total allocated capital | $ | 8,615 | $ | 8,694 | $ | 8,660 | $ | 8,711 | $ | 8,728 | $ | 8,615 | $ | 8,728 | $ | 113 | 1 | % | $ | 113 | 1 | % | $ | 17 | — | % |
(1) | Allocated capital equals Ameriprise Financial shareholders' equity excluding consolidated investment entities less AOCI plus Ameriprise Financial long-term debt excluding fair value of hedges, unamortized discount, debt issuance costs and capital lease obligations. Allocated capital is not adjusted for non adjusted operating items except for CIEs. |
# Variance equal to or greater than 100%. |
Prior Year Comparisons | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-Date | Qtr Chg - 4Q | YTD Chg - 4Q | Seq Qtr Chg - 4Q | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions unless otherwise noted, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | Diff. | % | Diff. | % | Diff. | % | ||||||||||||||||||||||||||||||||||||
Segment Summary | |||||||||||||||||||||||||||||||||||||||||||||||||
Advice & Wealth Management | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted operating total net revenues | $ | 1,509 | $ | 1,501 | $ | 1,543 | $ | 1,564 | $ | 1,581 | $ | 5,616 | $ | 6,189 | $ | 72 | 5 | % | $ | 573 | 10 | % | $ | 17 | 1 | % | |||||||||||||||||||||||
Adjusted operating expenses | 1,184 | 1,185 | 1,193 | 1,209 | 1,213 | 4,453 | 4,800 | 29 | 2 | % | 347 | 8 | % | 4 | — | % | |||||||||||||||||||||||||||||||||
Pretax adjusted operating earnings | $ | 325 | $ | 316 | $ | 350 | $ | 355 | $ | 368 | $ | 1,163 | $ | 1,389 | $ | 43 | 13 | % | $ | 226 | 19 | % | $ | 13 | 4 | % | |||||||||||||||||||||||
Allocated capital | $ | 710 | $ | 718 | $ | 738 | $ | 765 | $ | 742 | $ | 710 | $ | 742 | $ | 32 | 5 | % | $ | 32 | 5 | % | $ | (23 | ) | (3 | )% | ||||||||||||||||||||||
Adjusted operating return on allocated capital (1) | 112.5 | % | 119.2 | % | 126.6 | % | 132.2 | % | 159.4 | % | 112.5 | % | 159.4 | % | 46.9 | % | 46.9 | % | 27.2 | % | |||||||||||||||||||||||||||||
Pretax adjusted operating margin | 21.5 | % | 21.1 | % | 22.7 | % | 22.7 | % | 23.3 | % | 20.7 | % | 22.4 | % | 1.8 | % | 1.7 | % | 0.6 | % | |||||||||||||||||||||||||||||
Asset Management | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted operating total net revenues | $ | 816 | $ | 778 | $ | 755 | $ | 772 | $ | 706 | $ | 3,072 | $ | 3,011 | $ | (110 | ) | (13 | )% | $ | (61 | ) | (2 | )% | $ | (66 | ) | (9 | )% | ||||||||||||||||||||
Adjusted operating expenses | 606 | 583 | 572 | 575 | 553 | 2,332 | 2,283 | (53 | ) | (9 | )% | (49 | ) | (2 | )% | (22 | ) | (4 | )% | ||||||||||||||||||||||||||||||
Pretax adjusted operating earnings | $ | 210 | $ | 195 | $ | 183 | $ | 197 | $ | 153 | $ | 740 | $ | 728 | $ | (57 | ) | (27 | )% | $ | (12 | ) | (2 | )% | $ | (44 | ) | (22 | )% | ||||||||||||||||||||
Allocated capital | $ | 1,868 | $ | 1,871 | $ | 1,867 | $ | 1,858 | $ | 1,848 | $ | 1,868 | $ | 1,848 | $ | (20 | ) | (1 | )% | $ | (20 | ) | (1 | )% | $ | (10 | ) | (1 | )% | ||||||||||||||||||||
Adjusted operating return on allocated capital (1) | 26.3 | % | 28.4 | % | 29.3 | % | 29.6 | % | 33.0 | % | 26.3 | % | 33.0 | % | 6.7 | % | 6.7 | % | 3.4 | % | |||||||||||||||||||||||||||||
Pretax adjusted operating margin | 25.7 | % | 25.1 | % | 24.2 | % | 25.5 | % | 21.7 | % | 24.1 | % | 24.2 | % | (4.0 | )% | 0.1 | % | (3.8 | )% | |||||||||||||||||||||||||||||
Adjusted operating total net revenues | $ | 816 | $ | 778 | $ | 755 | $ | 772 | $ | 706 | $ | 3,072 | $ | 3,011 | $ | (110 | ) | (13 | )% | $ | (61 | ) | (2 | )% | $ | (66 | ) | (9 | )% | ||||||||||||||||||||
Distribution pass thru revenues | (202 | ) | (201 | ) | (196 | ) | (195 | ) | (180 | ) | (799 | ) | (772 | ) | 22 | 11 | % | 27 | 3 | % | 15 | 8 | % | ||||||||||||||||||||||||||
Subadvisory and other pass thru revenues | (94 | ) | (85 | ) | (88 | ) | (90 | ) | (81 | ) | (368 | ) | (344 | ) | 13 | 14 | % | 24 | 7 | % | 9 | 10 | % | ||||||||||||||||||||||||||
Net adjusted operating revenues (2) | $ | 520 | $ | 492 | $ | 471 | $ | 487 | $ | 445 | $ | 1,905 | $ | 1,895 | $ | (75 | ) | (14 | )% | $ | (10 | ) | (1 | )% | $ | (42 | ) | (9 | )% | ||||||||||||||||||||
Pretax adjusted operating earnings | $ | 210 | $ | 195 | $ | 183 | $ | 197 | $ | 153 | $ | 740 | $ | 728 | $ | (57 | ) | (27 | )% | $ | (12 | ) | (2 | )% | $ | (44 | ) | (22 | )% | ||||||||||||||||||||
Adjusted operating net investment income | (12 | ) | (2 | ) | (8 | ) | (7 | ) | (2 | ) | (28 | ) | (19 | ) | 10 | 83 | % | 9 | 32 | % | 5 | 71 | % | ||||||||||||||||||||||||||
Amortization of intangibles | 5 | 5 | 4 | 5 | 4 | 17 | 18 | (1 | ) | (20 | )% | 1 | 6 | % | (1 | ) | (20 | )% | |||||||||||||||||||||||||||||||
Net adjusted operating earnings (2) | $ | 203 | $ | 198 | $ | 179 | $ | 195 | $ | 155 | $ | 729 | $ | 727 | $ | (48 | ) | (24 | )% | $ | (2 | ) | — | % | $ | (40 | ) | (21 | )% | ||||||||||||||||||||
Net pretax adjusted operating margin (2)(3) | 39.0 | % | 40.2 | % | 38.0 | % | 40.0 | % | 34.8 | % | 38.3 | % | 38.4 | % | (4.2 | )% | 0.1 | % | (5.2 | )% | |||||||||||||||||||||||||||||
Annuities | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted operating total net revenues | $ | 638 | $ | 613 | $ | 622 | $ | 628 | $ | 613 | $ | 2,499 | $ | 2,476 | $ | (25 | ) | (4 | )% | $ | (23 | ) | (1 | )% | $ | (15 | ) | (2 | )% | ||||||||||||||||||||
Adjusted operating expenses | 490 | 481 | 493 | 475 | 562 | 1,789 | 2,011 | 72 | 15 | % | 222 | 12 | % | 87 | 18 | % | |||||||||||||||||||||||||||||||||
Pretax adjusted operating earnings | $ | 148 | $ | 132 | $ | 129 | $ | 153 | $ | 51 | $ | 710 | $ | 465 | $ | (97 | ) | (66 | )% | $ | (245 | ) | (35 | )% | $ | (102 | ) | (67 | )% | ||||||||||||||||||||
Allocated capital | $ | 1,933 | $ | 1,909 | $ | 1,911 | $ | 1,886 | $ | 1,892 | $ | 1,933 | $ | 1,892 | $ | (41 | ) | (2 | )% | $ | (41 | ) | (2 | )% | $ | 6 | — | % | |||||||||||||||||||||
Adjusted operating return on allocated capital (1) | 24.9 | % | 25.0 | % | 25.2 | % | 20.7 | % | 20.6 | % | 24.9 | % | 20.6 | % | (4.3 | )% | (4.3 | )% | (0.1 | )% | |||||||||||||||||||||||||||||
Pretax adjusted operating margin | 23.2 | % | 21.5 | % | 20.7 | % | 24.4 | % | 8.3 | % | 28.4 | % | 18.8 | % | (14.9 | )% | (9.6 | )% | (16.1 | )% | |||||||||||||||||||||||||||||
Protection | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted operating total net revenues | $ | 528 | $ | 519 | $ | 533 | $ | 611 | $ | 543 | $ | 2,044 | $ | 2,206 | $ | 15 | 3 | % | $ | 162 | 8 | % | $ | (68 | ) | (11 | )% | ||||||||||||||||||||||
Adjusted operating expenses | 481 | 449 | 488 | 550 | 476 | 1,828 | 1,963 | (5 | ) | (1 | )% | 135 | 7 | % | (74 | ) | (13 | )% | |||||||||||||||||||||||||||||||
Pretax adjusted operating earnings | $ | 47 | $ | 70 | $ | 45 | $ | 61 | $ | 67 | $ | 216 | $ | 243 | $ | 20 | 43 | % | $ | 27 | 13 | % | $ | 6 | 10 | % | |||||||||||||||||||||||
Allocated capital | $ | 1,339 | $ | 1,465 | $ | 1,455 | $ | 1,385 | $ | 1,477 | $ | 1,339 | $ | 1,477 | $ | 138 | 10 | % | $ | 138 | 10 | % | $ | 92 | 7 | % | |||||||||||||||||||||||
Adjusted operating return on allocated capital (1) | 10.3 | % | 10.9 | % | 10.9 | % | 11.6 | % | 14.4 | % | 10.3 | % | 14.4 | % | 4.1 | % | 4.1 | % | 2.8 | % | |||||||||||||||||||||||||||||
Pretax adjusted operating margin | 8.9 | % | 13.5 | % | 8.4 | % | 10.0 | % | 12.3 | % | 10.6 | % | 11.0 | % | 3.4 | % | 0.4 | % | 2.3 | % | |||||||||||||||||||||||||||||
Corporate & Other | |||||||||||||||||||||||||||||||||||||||||||||||||
Corporate excluding Long Term Care pretax adjusted operating loss | $ | (121 | ) | $ | (58 | ) | $ | (60 | ) | $ | (68 | ) | $ | (47 | ) | $ | (353 | ) | $ | (233 | ) | $ | 74 | 61 | % | $ | 120 | 34 | % | $ | 21 | 31 | % | ||||||||||||||||
Long Term Care pretax adjusted operating earnings (loss) | $ | (13 | ) | $ | 2 | $ | (5 | ) | $ | (53 | ) | $ | (5 | ) | $ | (73 | ) | $ | (61 | ) | $ | 8 | 62 | % | $ | 12 | 16 | % | $ | 48 | 91 | % |
(1) | Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator. |
(2) | See non-GAAP financial information on pg 33. |
(3) | Calculated as net adjusted operating earnings as a percentage of net adjusted operating revenues. |
Prior Year Comparisons | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-Date | Qtr Chg - 4Q | YTD Chg - 4Q | Seq Qtr Chg - 4Q | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions unless otherwise noted, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | Diff. | % | Diff. | % | Diff. | % | ||||||||||||||||||||||||||||||||||||
Advice & Wealth Management Segment Adjusted Operating Income Statements | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||
Management and financial advice fees | $ | 855 | $ | 848 | $ | 878 | $ | 902 | $ | 910 | $ | 3,153 | $ | 3,538 | $ | 55 | 6 | % | $ | 385 | 12 | % | $ | 8 | 1 | % | |||||||||||||||||||||||
Distribution fees | 554 | 557 | 562 | 558 | 564 | 2,095 | 2,241 | 10 | 2 | % | 146 | 7 | % | 6 | 1 | % | |||||||||||||||||||||||||||||||||
Net investment income | 65 | 69 | 73 | 81 | 93 | 239 | 316 | 28 | 43 | % | 77 | 32 | % | 12 | 15 | % | |||||||||||||||||||||||||||||||||
Premiums | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Other revenues | 49 | 43 | 50 | 47 | 43 | 177 | 183 | (6 | ) | (12 | )% | 6 | 3 | % | (4 | ) | (9 | )% | |||||||||||||||||||||||||||||||
Total revenues | 1,523 | 1,517 | 1,563 | 1,588 | 1,610 | 5,664 | 6,278 | 87 | 6 | % | 614 | 11 | % | 22 | 1 | % | |||||||||||||||||||||||||||||||||
Banking and deposit interest expense | 14 | 16 | 20 | 24 | 29 | 48 | 89 | 15 | # | 41 | 85 | % | 5 | 21 | % | ||||||||||||||||||||||||||||||||||
Adjusted operating total net revenues | 1,509 | 1,501 | 1,543 | 1,564 | 1,581 | 5,616 | 6,189 | 72 | 5 | % | 573 | 10 | % | 17 | 1 | % | |||||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||
Distribution expenses | 866 | 869 | 876 | 888 | 888 | 3,245 | 3,521 | 22 | 3 | % | 276 | 9 | % | — | — | % | |||||||||||||||||||||||||||||||||
Interest credited to fixed accounts | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Interest and debt expense | 2 | 3 | 2 | 3 | 2 | 9 | 10 | — | — | % | 1 | 11 | % | (1 | ) | (33 | )% | ||||||||||||||||||||||||||||||||
General and administrative expense | 316 | 313 | 315 | 318 | 323 | 1,199 | 1,269 | 7 | 2 | % | 70 | 6 | % | 5 | 2 | % | |||||||||||||||||||||||||||||||||
Adjusted operating expenses | 1,184 | 1,185 | 1,193 | 1,209 | 1,213 | 4,453 | 4,800 | 29 | 2 | % | 347 | 8 | % | 4 | — | % | |||||||||||||||||||||||||||||||||
Pretax adjusted operating earnings | $ | 325 | $ | 316 | $ | 350 | $ | 355 | $ | 368 | $ | 1,163 | $ | 1,389 | $ | 43 | 13 | % | $ | 226 | 19 | % | $ | 13 | 4 | % | |||||||||||||||||||||||
Pretax adjusted operating margin | 21.5 | % | 21.1 | % | 22.7 | % | 22.7 | % | 23.3 | % | 20.7 | % | 22.4 | % | 1.8 | % | 1.7 | % | 0.6 | % | |||||||||||||||||||||||||||||
Return on Capital | |||||||||||||||||||||||||||||||||||||||||||||||||
Allocated capital | $ | 710 | $ | 718 | $ | 738 | $ | 765 | $ | 742 | $ | 710 | $ | 742 | $ | 32 | 5 | % | $ | 32 | 5 | % | $ | (23 | ) | (3 | )% | ||||||||||||||||||||||
Adjusted operating return on allocated capital (1) | 112.5 | % | 119.2 | % | 126.6 | % | 132.2 | % | 159.4 | % | 112.5 | % | 159.4 | % | 46.9 | % | 46.9 | % | 27.2 | % | |||||||||||||||||||||||||||||
Brokerage cash balance (2) | $ | 26,238 | $ | 25,443 | $ | 24,504 | $ | 24,238 | $ | 27,730 | $ | 26,238 | $ | 27,730 | $ | 1,492 | 6 | % | $ | 1,492 | 6 | % | $ | 3,492 | 14 | % | |||||||||||||||||||||||
Brokerage sweep fee | 1.14 | % | 1.32 | % | 1.57 | % | 1.73 | % | 1.95 | % | 0.98 | % | 1.64 | % | 0.81 | % | 0.66 | % | 0.22 | % | |||||||||||||||||||||||||||||
On-balance sheet deposits | $ | 10,316 | $ | 10,252 | $ | 10,440 | $ | 10,775 | $ | 11,553 | $ | 10,316 | $ | 11,553 | $ | 1,237 | 12 | % | $ | 1,237 | 12 | % | $ | 778 | 7 | % |
(1) | Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator. |
(2) | Brokerage cash includes both off-balance sheet and on-balance sheet deposits. In the 4th quarter of 2017 through the 4th quarter of 2018, on-balance sheet deposits included in brokerage cash are $3.9B, $3.7B, $3.5B, $3.4B and $3.7B, respectively. |
# Variance equal to or greater than 100%. |
Prior Year Comparisons | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-Date | Qtr Chg - 4Q | YTD Chg - 4Q | Seq Qtr Chg - 4Q | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except headcount and where noted, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | Diff. | % | Diff. | % | Diff. | % | ||||||||||||||||||||||||||||||||||||
Product Information | |||||||||||||||||||||||||||||||||||||||||||||||||
Certificates and Banking - Combined | |||||||||||||||||||||||||||||||||||||||||||||||||
Pretax adjusted operating earnings | $ | 18 | $ | 17 | $ | 15 | $ | 16 | $ | 19 | $ | 69 | $ | 67 | $ | 1 | 6 | % | $ | (2 | ) | (3 | )% | $ | 3 | 19 | % | ||||||||||||||||||||||
Allocated capital | $ | 353 | $ | 361 | $ | 380 | $ | 403 | $ | 430 | $ | 353 | $ | 430 | $ | 77 | 22 | % | $ | 77 | 22 | % | $ | 27 | 7 | % | |||||||||||||||||||||||
Adjusted operating return on allocated capital (1) | 13.3 | % | 13.6 | % | 13.2 | % | 12.5 | % | 14.7 | % | 13.3 | % | 14.7 | % | 1.4 | % | 1.4 | % | 2.2 | % | |||||||||||||||||||||||||||||
Wealth Management & Distribution | |||||||||||||||||||||||||||||||||||||||||||||||||
Pretax adjusted operating earnings | $ | 307 | $ | 299 | $ | 335 | $ | 339 | $ | 349 | $ | 1,094 | $ | 1,322 | $ | 42 | 14 | % | $ | 228 | 21 | % | $ | 10 | 3 | % | |||||||||||||||||||||||
Allocated capital | $ | 357 | $ | 357 | $ | 358 | $ | 362 | $ | 312 | $ | 357 | $ | 312 | $ | (45 | ) | (13 | )% | $ | (45 | ) | (13 | )% | $ | (50 | ) | (14 | )% | ||||||||||||||||||||
Adjusted operating return on allocated capital (1) | 215.3 | % | 227.7 | % | 242.9 | % | 255.8 | % | 319.1 | % | 215.3 | % | 319.1 | % | 103.8 | % | 103.8 | % | 63.3 | % | |||||||||||||||||||||||||||||
Financial Advisors | |||||||||||||||||||||||||||||||||||||||||||||||||
Employee advisors (2) | 2,210 | 2,176 | 2,176 | 2,174 | 2,176 | 2,210 | 2,176 | (34 | ) | (2 | )% | (34 | ) | (2 | )% | 2 | — | % | |||||||||||||||||||||||||||||||
Franchisee advisors | 7,686 | 7,705 | 7,730 | 7,759 | 7,755 | 7,686 | 7,755 | 69 | 1 | % | 69 | 1 | % | (4 | ) | — | % | ||||||||||||||||||||||||||||||||
Total financial advisors | 9,896 | 9,881 | 9,906 | 9,933 | 9,931 | 9,896 | 9,931 | 35 | — | % | 35 | — | % | (2 | ) | — | % | ||||||||||||||||||||||||||||||||
Adjusted operating total net revenues per financial advisor (in thousands) (3) | $ | 152 | $ | 152 | $ | 156 | $ | 157 | $ | 159 | $ | 575 | $ | 624 | $ | 7 | 5 | % | $ | 49 | 9 | % | $ | 2 | 1 | % | |||||||||||||||||||||||
Adjusted operating total net revenues per financial advisor-trailing twelve months (in thousands) (4) | $ | 575 | $ | 590 | $ | 603 | $ | 617 | $ | 624 | $ | 575 | $ | 624 | $ | 49 | 9 | % | $ | 49 | 9 | % | $ | 7 | 1 | % | |||||||||||||||||||||||
Advisor Retention | |||||||||||||||||||||||||||||||||||||||||||||||||
Employee | 92.4 | % | 92.2 | % | 92.3 | % | 91.9 | % | 92.0 | % | 92.4 | % | 92.0 | % | (0.4 | )% | (0.4 | )% | 0.1 | % | |||||||||||||||||||||||||||||
Franchisee | 92.8 | % | 93.0 | % | 93.5 | % | 93.6 | % | 93.5 | % | 92.8 | % | 93.5 | % | 0.7 | % | 0.7 | % | (0.1 | )% | |||||||||||||||||||||||||||||
Total Client Assets (at period end) | $ | 559,692 | $ | 556,694 | $ | 565,726 | $ | 587,968 | $ | 538,978 | $ | 559,692 | $ | 538,978 | $ | (20,714 | ) | (4 | )% | $ | (20,714 | ) | (4 | )% | $ | (48,990 | ) | (8 | )% | ||||||||||||||||||||
Total Wrap Accounts | |||||||||||||||||||||||||||||||||||||||||||||||||
Beginning assets | $ | 235,224 | $ | 248,150 | $ | 250,974 | $ | 258,729 | $ | 272,243 | $ | 201,078 | $ | 248,150 | $ | 37,019 | 16 | % | $ | 47,072 | 23 | % | $ | 13,514 | 5 | % | |||||||||||||||||||||||
Inflows from acquisitions (5) | — | — | — | — | — | 743 | — | — | — | % | (743 | ) | # | — | — | % | |||||||||||||||||||||||||||||||||
Other net flows | 5,013 | 5,689 | 5,260 | 5,664 | 4,507 | 18,790 | 21,120 | (506 | ) | (10 | )% | 2,330 | 12 | % | (1,157 | ) | (20 | )% | |||||||||||||||||||||||||||||||
Net flows (6) | 5,013 | 5,689 | 5,260 | 5,664 | 4,507 | 19,533 | 21,120 | (506 | ) | (10 | )% | 1,587 | 8 | % | (1,157 | ) | (20 | )% | |||||||||||||||||||||||||||||||
Market appreciation (depreciation) and other (6) | 7,913 | (2,865 | ) | 2,495 | 7,850 | (25,264 | ) | 27,539 | (17,784 | ) | (33,177 | ) | # | (45,323 | ) | # | (33,114 | ) | # | ||||||||||||||||||||||||||||||
Total wrap ending assets | $ | 248,150 | $ | 250,974 | $ | 258,729 | $ | 272,243 | $ | 251,486 | $ | 248,150 | $ | 251,486 | $ | 3,336 | 1 | % | $ | 3,336 | 1 | % | $ | (20,757 | ) | (8 | )% | ||||||||||||||||||||||
Advisory wrap account assets ending balance (7) | $ | 245,819 | $ | 248,675 | $ | 256,327 | $ | 269,669 | $ | 249,072 | $ | 245,819 | $ | 249,072 | $ | 3,253 | 1 | % | $ | 3,253 | 1 | % | $ | (20,597 | ) | (8 | )% |
(1) | Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator. |
(2) | IPI advisors are being included in the employee advisor count. |
(3) | Year-to-date is sum of current and prior quarters for the year under review. |
(4) | Trailing twelve months is the sum of the last four quarters. |
(5) | Inflows associated with acquisitions that closed during the quarter. |
(6) | IPI wrap net flows are included in Net flows starting in Q4 2018. Prior to that, the change in IPI wrap assets was included in Market appreciation (depreciation) and other. |
(7) | Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts. Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee. |
# Variance equal to or greater than 100%. |
Prior Year Comparisons | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-Date | Qtr Chg - 4Q | YTD Chg - 4Q | Seq Qtr Chg - 4Q | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions unless otherwise noted, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | Diff. | % | Diff. | % | Diff. | % | ||||||||||||||||||||||||||||||||||||
Asset Management Segment Adjusted Operating Income Statements | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||
Management and financial advice fees | $ | 685 | $ | 645 | $ | 636 | $ | 657 | $ | 602 | $ | 2,569 | $ | 2,540 | $ | (83 | ) | (12 | )% | $ | (29 | ) | (1 | )% | $ | (55 | ) | (8 | )% | ||||||||||||||||||||
Distribution fees | 114 | 114 | 110 | 108 | 101 | 458 | 433 | (13 | ) | (11 | )% | (25 | ) | (5 | )% | (7 | ) | (6 | )% | ||||||||||||||||||||||||||||||
Net investment income | 12 | 2 | 8 | 7 | 2 | 28 | 19 | (10 | ) | (83 | )% | (9 | ) | (32 | )% | (5 | ) | (71 | )% | ||||||||||||||||||||||||||||||
Premiums | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Other revenues | 5 | 17 | 1 | — | 1 | 17 | 19 | (4 | ) | (80 | )% | 2 | 12 | % | 1 | — | % | ||||||||||||||||||||||||||||||||
Total revenues | 816 | 778 | 755 | 772 | 706 | 3,072 | 3,011 | (110 | ) | (13 | )% | (61 | ) | (2 | )% | (66 | ) | (9 | )% | ||||||||||||||||||||||||||||||
Banking and deposit interest expense | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Adjusted operating total net revenues | 816 | 778 | 755 | 772 | 706 | 3,072 | 3,011 | (110 | ) | (13 | )% | (61 | ) | (2 | )% | (66 | ) | (9 | )% | ||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||
Distribution expenses | 249 | 249 | 241 | 244 | 227 | 998 | 961 | (22 | ) | (9 | )% | (37 | ) | (4 | )% | (17 | ) | (7 | )% | ||||||||||||||||||||||||||||||
Interest credited to fixed accounts | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | 3 | 3 | 4 | 3 | 3 | 15 | 13 | — | — | % | (2 | ) | (13 | )% | — | — | % | ||||||||||||||||||||||||||||||||
Interest and debt expense | 6 | 6 | 6 | 5 | 7 | 22 | 24 | 1 | 17 | % | 2 | 9 | % | 2 | 40 | % | |||||||||||||||||||||||||||||||||
General and administrative expense | 348 | 325 | 321 | 323 | 316 | 1,297 | 1,285 | (32 | ) | (9 | )% | (12 | ) | (1 | )% | (7 | ) | (2 | )% | ||||||||||||||||||||||||||||||
Adjusted operating expenses | 606 | 583 | 572 | 575 | 553 | 2,332 | 2,283 | (53 | ) | (9 | )% | (49 | ) | (2 | )% | (22 | ) | (4 | )% | ||||||||||||||||||||||||||||||
Pretax adjusted operating earnings | $ | 210 | $ | 195 | $ | 183 | $ | 197 | $ | 153 | $ | 740 | $ | 728 | $ | (57 | ) | (27 | )% | $ | (12 | ) | (2 | )% | $ | (44 | ) | (22 | )% | ||||||||||||||||||||
Pretax adjusted operating margin | 25.7 | % | 25.1 | % | 24.2 | % | 25.5 | % | 21.7 | % | 24.1 | % | 24.2 | % | (4.0 | )% | 0.1 | % | (3.8 | )% | |||||||||||||||||||||||||||||
Adjusted operating total net revenues | $ | 816 | $ | 778 | $ | 755 | $ | 772 | $ | 706 | $ | 3,072 | $ | 3,011 | $ | (110 | ) | (13 | )% | $ | (61 | ) | (2 | )% | $ | (66 | ) | (9 | )% | ||||||||||||||||||||
Distribution pass thru revenues | (202 | ) | (201 | ) | (196 | ) | (195 | ) | (180 | ) | (799 | ) | (772 | ) | 22 | 11 | % | 27 | 3 | % | 15 | 8 | % | ||||||||||||||||||||||||||
Subadvisory and other pass thru revenues | (94 | ) | (85 | ) | (88 | ) | (90 | ) | (81 | ) | (368 | ) | (344 | ) | 13 | 14 | % | 24 | 7 | % | 9 | 10 | % | ||||||||||||||||||||||||||
Net adjusted operating revenues (1) | $ | 520 | $ | 492 | $ | 471 | $ | 487 | $ | 445 | $ | 1,905 | $ | 1,895 | $ | (75 | ) | (14 | )% | $ | (10 | ) | (1 | )% | $ | (42 | ) | (9 | )% | ||||||||||||||||||||
Pretax adjusted operating earnings | $ | 210 | $ | 195 | $ | 183 | $ | 197 | $ | 153 | $ | 740 | $ | 728 | $ | (57 | ) | (27 | )% | $ | (12 | ) | (2 | )% | $ | (44 | ) | (22 | )% | ||||||||||||||||||||
Adjusted operating net investment income | (12 | ) | (2 | ) | (8 | ) | (7 | ) | (2 | ) | (28 | ) | (19 | ) | 10 | 83 | % | 9 | 32 | % | 5 | 71 | % | ||||||||||||||||||||||||||
Amortization of intangibles | 5 | 5 | 4 | 5 | 4 | 17 | 18 | (1 | ) | (20 | )% | 1 | 6 | % | (1 | ) | (20 | )% | |||||||||||||||||||||||||||||||
Net adjusted operating earnings (1) | $ | 203 | $ | 198 | $ | 179 | $ | 195 | $ | 155 | $ | 729 | $ | 727 | $ | (48 | ) | (24 | )% | $ | (2 | ) | — | % | $ | (40 | ) | (21 | )% | ||||||||||||||||||||
Net pretax adjusted operating margin (1)(2) | 39.0 | % | 40.2 | % | 38.0 | % | 40.0 | % | 34.8 | % | 38.3 | % | 38.4 | % | (4.2 | )% | 0.1 | % | (5.2 | )% | |||||||||||||||||||||||||||||
Performance Fees (3) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net performance fees | $ | 12 | $ | 1 | $ | 3 | $ | 14 | $ | 5 | $ | 26 | $ | 23 | $ | (7 | ) | (58 | )% | $ | (3 | ) | (12 | )% | $ | (9 | ) | (64 | )% | ||||||||||||||||||||
Return on Capital | |||||||||||||||||||||||||||||||||||||||||||||||||
Allocated capital | $ | 1,868 | $ | 1,871 | $ | 1,867 | $ | 1,858 | $ | 1,848 | $ | 1,868 | $ | 1,848 | $ | (20 | ) | (1 | )% | $ | (20 | ) | (1 | )% | $ | (10 | ) | (1 | )% | ||||||||||||||||||||
Adjusted operating return on allocated capital (4) | 26.3 | % | 28.4 | % | 29.3 | % | 29.6 | % | 33.0 | % | 26.3 | % | 33.0 | % | 6.7 | % | 6.7 | % | 3.4 | % |
(1) | See non-GAAP financial information on pg 33. |
(2) | Calculated as net adjusted operating earnings as a percentage of net adjusted operating revenues. |
(3) | Performance fees, which are net of associated compensation, do not include CLO incentive fees. |
(4) | Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator. |
Prior Year Comparisons | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-Date | Qtr Chg - 4Q | YTD Chg - 4Q | Seq Qtr Chg - 4Q | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions unless otherwise noted, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | Diff. | % | Diff. | % | Diff. | % | ||||||||||||||||||||||||||||||||||||
Total Managed Assets by Type | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity | $ | 275,417 | $ | 267,687 | $ | 268,561 | $ | 273,799 | $ | 228,950 | $ | 275,417 | $ | 228,950 | $ | (46,467 | ) | (17 | )% | $ | (46,467 | ) | (17 | )% | $ | (44,849 | ) | (16 | )% | ||||||||||||||||||||
Fixed income | 173,571 | 172,127 | 169,136 | 167,828 | 160,879 | 173,571 | 160,879 | (12,692 | ) | (7 | )% | (12,692 | ) | (7 | )% | (6,949 | ) | (4 | )% | ||||||||||||||||||||||||||||||
Money market | 5,362 | 5,285 | 6,061 | 5,505 | 5,099 | 5,362 | 5,099 | (263 | ) | (5 | )% | (263 | ) | (5 | )% | (406 | ) | (7 | )% | ||||||||||||||||||||||||||||||
Alternative | 5,566 | 5,486 | 4,432 | 3,393 | 3,085 | 5,566 | 3,085 | (2,481 | ) | (45 | )% | (2,481 | ) | (45 | )% | (308 | ) | (9 | )% | ||||||||||||||||||||||||||||||
Hybrid and other | 34,642 | 34,730 | 33,882 | 34,827 | 32,637 | 34,642 | 32,637 | (2,005 | ) | (6 | )% | (2,005 | ) | (6 | )% | (2,190 | ) | (6 | )% | ||||||||||||||||||||||||||||||
Total managed assets by type | $ | 494,558 | $ | 485,315 | $ | 482,072 | $ | 485,352 | $ | 430,650 | $ | 494,558 | $ | 430,650 | $ | (63,908 | ) | (13 | )% | $ | (63,908 | ) | (13 | )% | $ | (54,702 | ) | (11 | )% | ||||||||||||||||||||
Average Managed Assets by Type (1) | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity | $ | 270,533 | $ | 275,954 | $ | 268,420 | $ | 273,172 | $ | 250,616 | $ | 258,370 | $ | 266,353 | $ | (19,917 | ) | (7 | )% | $ | 7,983 | 3 | % | $ | (22,556 | ) | (8 | )% | |||||||||||||||||||||
Fixed income | 176,508 | 173,142 | 170,403 | 168,896 | 163,733 | 177,009 | 168,893 | (12,775 | ) | (7 | )% | (8,116 | ) | (5 | )% | (5,163 | ) | (3 | )% | ||||||||||||||||||||||||||||||
Money market | 5,539 | 5,474 | 6,071 | 5,740 | 5,380 | 5,789 | 5,677 | (159 | ) | (3 | )% | (112 | ) | (2 | )% | (360 | ) | (6 | )% | ||||||||||||||||||||||||||||||
Alternative | 6,092 | 5,533 | 5,045 | 3,914 | 3,243 | 6,773 | 4,433 | (2,849 | ) | (47 | )% | (2,340 | ) | (35 | )% | (671 | ) | (17 | )% | ||||||||||||||||||||||||||||||
Hybrid and other | 31,169 | 34,983 | 34,089 | 34,468 | 33,688 | 27,574 | 34,267 | 2,519 | 8 | % | 6,693 | 24 | % | (780 | ) | (2 | )% | ||||||||||||||||||||||||||||||||
Total average managed assets by type | $ | 489,841 | $ | 495,086 | $ | 484,028 | $ | 486,190 | $ | 456,660 | $ | 475,515 | $ | 479,623 | $ | (33,181 | ) | (7 | )% | $ | 4,108 | 1 | % | $ | (29,530 | ) | (6 | )% |
(1) | Average ending balances are calculated using the average of the prior period's ending balance and all months in the current period. |
Prior Year Comparisons | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-Date | Qtr Chg - 4Q | YTD Chg - 4Q | Seq Qtr Chg - 4Q | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions unless otherwise noted, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | Diff. | % | Diff. | % | Diff. | % | ||||||||||||||||||||||||||||||||||||
Managed Assets Rollforward | |||||||||||||||||||||||||||||||||||||||||||||||||
Global Retail Funds | |||||||||||||||||||||||||||||||||||||||||||||||||
Beginning assets | $ | 280,749 | $ | 287,803 | $ | 282,089 | $ | 282,311 | $ | 286,369 | $ | 259,919 | $ | 287,803 | $ | 5,620 | 2 | % | $ | 27,884 | 11 | % | $ | 4,058 | 1 | % | |||||||||||||||||||||||
Inflows | 12,917 | 13,243 | 13,696 | 12,660 | 13,400 | 50,924 | 52,999 | 483 | 4 | % | 2,075 | 4 | % | 740 | 6 | % | |||||||||||||||||||||||||||||||||
Outflows | (14,332 | ) | (17,023 | ) | (14,569 | ) | (15,450 | ) | (20,171 | ) | (60,000 | ) | (67,213 | ) | (5,839 | ) | (41 | )% | (7,213 | ) | (12 | )% | (4,721 | ) | (31 | )% | |||||||||||||||||||||||
Net VP/VIT fund flows | (773 | ) | (750 | ) | (689 | ) | (788 | ) | (736 | ) | (3,330 | ) | (2,963 | ) | 37 | 5 | % | 367 | 11 | % | 52 | 7 | % | ||||||||||||||||||||||||||
Net new flows | (2,188 | ) | (4,530 | ) | (1,562 | ) | (3,578 | ) | (7,507 | ) | (12,406 | ) | (17,177 | ) | (5,319 | ) | # | (4,771 | ) | (38 | )% | (3,929 | ) | # | |||||||||||||||||||||||||
Reinvested dividends | 6,530 | 476 | 2,984 | 551 | 7,597 | 9,831 | 11,608 | 1,067 | 16 | % | 1,777 | 18 | % | 7,046 | # | ||||||||||||||||||||||||||||||||||
Net flows | 4,342 | (4,054 | ) | 1,422 | (3,027 | ) | 90 | (2,575 | ) | (5,569 | ) | (4,252 | ) | (98 | )% | (2,994 | ) | # | 3,117 | # | |||||||||||||||||||||||||||||
Distributions | (7,640 | ) | (657 | ) | (3,461 | ) | (742 | ) | (8,917 | ) | (11,731 | ) | (13,777 | ) | (1,277 | ) | (17 | )% | (2,046 | ) | (17 | )% | (8,175 | ) | # | ||||||||||||||||||||||||
Market appreciation (depreciation) and other | 9,975 | (2,449 | ) | 4,723 | 8,252 | (28,738 | ) | 38,411 | (18,212 | ) | (38,713 | ) | # | (56,623 | ) | # | (36,990 | ) | # | ||||||||||||||||||||||||||||||
Foreign currency translation (1) | 377 | 1,446 | (2,462 | ) | (425 | ) | (861 | ) | 3,779 | (2,302 | ) | (1,238 | ) | # | (6,081 | ) | # | (436 | ) | # | |||||||||||||||||||||||||||||
Total ending assets | 287,803 | 282,089 | 282,311 | 286,369 | 247,943 | 287,803 | 247,943 | (39,860 | ) | (14 | )% | (39,860 | ) | (14 | )% | (38,426 | ) | (13 | )% | ||||||||||||||||||||||||||||||
% of total retail assets sub-advised | 17.9 | % | 17.5 | % | 18.0 | % | 17.8 | % | 18.6 | % | 17.9 | % | 18.6 | % | 0.7 | % | 0.7 | % | 0.8 | % | |||||||||||||||||||||||||||||
Global Institutional | |||||||||||||||||||||||||||||||||||||||||||||||||
Beginning assets | 203,204 | 206,755 | 203,226 | 199,761 | 198,983 | 194,494 | 206,755 | (4,221 | ) | (2 | )% | 12,261 | 6 | % | (778 | ) | — | % | |||||||||||||||||||||||||||||||
Inflows | 5,805 | 6,345 | 5,775 | 4,642 | 4,812 | 24,664 | 21,574 | (993 | ) | (17 | )% | (3,090 | ) | (13 | )% | 170 | 4 | % | |||||||||||||||||||||||||||||||
Inflows from acquisitions (2) | 5,439 | — | — | — | — | 5,439 | — | (5,439 | ) | # | (5,439 | ) | # | — | — | % | |||||||||||||||||||||||||||||||||
Outflows | (13,229 | ) | (9,950 | ) | (8,706 | ) | (8,960 | ) | (9,569 | ) | (44,212 | ) | (37,185 | ) | 3,660 | 28 | % | 7,027 | 16 | % | (609 | ) | (7 | )% | |||||||||||||||||||||||||
Net flows | (1,985 | ) | (3,605 | ) | (2,931 | ) | (4,318 | ) | (4,757 | ) | (14,109 | ) | (15,611 | ) | (2,772 | ) | # | (1,502 | ) | (11 | )% | (439 | ) | (10 | )% | ||||||||||||||||||||||||
Market appreciation (depreciation) and other (3) | 4,863 | (2,866 | ) | 4,212 | 4,384 | (10,227 | ) | 18,756 | (4,497 | ) | (15,090 | ) | # | (23,253 | ) | # | (14,611 | ) | # | ||||||||||||||||||||||||||||||
Foreign currency translation (1) | 673 | 2,942 | (4,746 | ) | (844 | ) | (1,292 | ) | 7,614 | (3,940 | ) | (1,965 | ) | # | (11,554 | ) | # | (448 | ) | (53 | )% | ||||||||||||||||||||||||||||
Total ending assets | 206,755 | 203,226 | 199,761 | 198,983 | 182,707 | 206,755 | 182,707 | (24,048 | ) | (12 | )% | (24,048 | ) | (12 | )% | (16,276 | ) | (8 | )% | ||||||||||||||||||||||||||||||
Total managed assets | $ | 494,558 | $ | 485,315 | $ | 482,072 | $ | 485,352 | $ | 430,650 | $ | 494,558 | $ | 430,650 | $ | (63,908 | ) | (13 | )% | $ | (63,908 | ) | (13 | )% | $ | (54,702 | ) | (11 | )% | ||||||||||||||||||||
Total net flows | $ | 2,357 | $ | (7,659 | ) | $ | (1,509 | ) | $ | (7,345 | ) | $ | (4,667 | ) | $ | (16,684 | ) | $ | (21,180 | ) | $ | (7,024 | ) | # | $ | (4,496 | ) | (27 | )% | $ | 2,678 | 36 | % | ||||||||||||||||
Former Parent Company Related (4) | |||||||||||||||||||||||||||||||||||||||||||||||||
Retail net new flows | $ | (713 | ) | $ | (545 | ) | $ | (558 | ) | $ | (411 | ) | $ | (1,258 | ) | $ | (2,968 | ) | $ | (2,772 | ) | $ | (545 | ) | (76 | )% | $ | 196 | 7 | % | $ | (847 | ) | # | |||||||||||||||
Institutional net new flows | (1,819 | ) | (1,029 | ) | (1,449 | ) | (1,085 | ) | (1,678 | ) | (12,236 | ) | (5,241 | ) | 141 | 8 | % | 6,995 | 57 | % | (593 | ) | (55 | )% | |||||||||||||||||||||||||
Total net new flows | $ | (2,532 | ) | $ | (1,574 | ) | $ | (2,007 | ) | $ | (1,496 | ) | $ | (2,936 | ) | $ | (15,204 | ) | $ | (8,013 | ) | $ | (404 | ) | (16 | )% | $ | 7,191 | 47 | % | $ | (1,440 | ) | (96 | )% |
(1) | Amounts represent local currency to US dollar translation for reporting purposes. |
(2) | Inflows associated with acquisitions that closed during the quarter. |
(3) | Included in Market appreciation (depreciation) and other for Global Institutional is the change in the affiliated general account balance. |
(4) | Former parent company related assets and net new flows are included in the rollforwards above. |
# Variance equal to or greater than 100%. | |
4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | |||||||||||||
Domestic Equity | |||||||||||||||||
Equal weighted | 1 year | 69 | % | 57 | % | 46 | % | 43 | % | 46 | % | ||||||
3 year | 75 | % | 72 | % | 59 | % | 53 | % | 50 | % | |||||||
5 year | 69 | % | 69 | % | 66 | % | 66 | % | 63 | % | |||||||
Asset weighted | 1 year | 73 | % | 58 | % | 50 | % | 54 | % | 56 | % | ||||||
3 year | 83 | % | 81 | % | 54 | % | 52 | % | 56 | % | |||||||
5 year | 80 | % | 80 | % | 78 | % | 75 | % | 68 | % | |||||||
International Equity | |||||||||||||||||
Equal weighted | 1 year | 75 | % | 85 | % | 80 | % | 80 | % | 35 | % | ||||||
3 year | 60 | % | 65 | % | 65 | % | 65 | % | 60 | % | |||||||
5 year | 70 | % | 75 | % | 75 | % | 75 | % | 60 | % | |||||||
Asset weighted | 1 year | 52 | % | 57 | % | 57 | % | 67 | % | 49 | % | ||||||
3 year | 47 | % | 46 | % | 50 | % | 52 | % | 69 | % | |||||||
5 year | 54 | % | 57 | % | 61 | % | 64 | % | 65 | % | |||||||
Taxable Fixed Income | |||||||||||||||||
Equal weighted | 1 year | 67 | % | 74 | % | 63 | % | 78 | % | 50 | % | ||||||
3 year | 83 | % | 72 | % | 72 | % | 76 | % | 71 | % | |||||||
5 year | 82 | % | 76 | % | 76 | % | 75 | % | 75 | % | |||||||
Asset weighted | 1 year | 69 | % | 80 | % | 74 | % | 85 | % | 48 | % | ||||||
3 year | 89 | % | 77 | % | 74 | % | 79 | % | 75 | % | |||||||
5 year | 89 | % | 82 | % | 82 | % | 82 | % | 82 | % | |||||||
Tax Exempt Fixed Income | |||||||||||||||||
Equal weighted | 1 year | 79 | % | 84 | % | 95 | % | 84 | % | 89 | % | ||||||
3 year | 89 | % | 89 | % | 84 | % | 84 | % | 100 | % | |||||||
5 year | 100 | % | 100 | % | 100 | % | 94 | % | 89 | % | |||||||
Asset weighted | 1 year | 76 | % | 91 | % | 99 | % | 84 | % | 86 | % | ||||||
3 year | 93 | % | 92 | % | 91 | % | 91 | % | 100 | % | |||||||
5 year | 100 | % | 100 | % | 100 | % | 93 | % | 98 | % | |||||||
Asset Allocation Funds | |||||||||||||||||
Equal weighted | 1 year | 62 | % | 60 | % | 53 | % | 50 | % | 46 | % | ||||||
3 year | 80 | % | 69 | % | 62 | % | 67 | % | 64 | % | |||||||
5 year | 78 | % | 78 | % | 78 | % | 78 | % | 100 | % | |||||||
Asset weighted | 1 year | 51 | % | 51 | % | 48 | % | 47 | % | 65 | % | ||||||
3 year | 94 | % | 90 | % | 50 | % | 50 | % | 50 | % | |||||||
5 year | 94 | % | 94 | % | 94 | % | 94 | % | 100 | % | |||||||
Number of 4- or 5-star Morningstar rated funds | |||||||||||||||||
Overall | 52 | 56 | 54 | 54 | 52 | ||||||||||||
3 year | 56 | 52 | 54 | 52 | 46 | ||||||||||||
5 year | 50 | 53 | 50 | 49 | 49 | ||||||||||||
Percent of 4- or 5-star Morningstar rated funds | |||||||||||||||||
Overall | 51 | % | 53 | % | 51 | % | 52 | % | 50 | % | |||||||
3 year | 55 | % | 50 | % | 51 | % | 50 | % | 44 | % | |||||||
5 year | 51 | % | 54 | % | 51 | % | 49 | % | 49 | % | |||||||
Percent of 4- or 5-star Morningstar rated assets | |||||||||||||||||
Overall | 60 | % | 61 | % | 58 | % | 61 | % | 67 | % | |||||||
3 year | 63 | % | 52 | % | 50 | % | 54 | % | 50 | % | |||||||
5 year | 59 | % | 61 | % | 51 | % | 53 | % | 59 | % |
Mutual fund performance rankings are based on the performance of the Institutional Class for Columbia branded mutual funds. Only funds with Institutional Class shares are included. |
Equal Weighted Rankings in Top 2 Quartiles: Counts the number of funds with above median ranking divided by the total number of funds. Asset size is not a factor. |
Asset Weighted Rankings in Top 2 Quartiles: Sums the total assets of the funds with above median ranking divided by total assets of all funds. Funds with more assets will receive a greater share of the total percentage above or below median. |
4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | |||||||||||||
Equity | |||||||||||||||||
Equal weighted | 1 year | 59 | % | 57 | % | 56 | % | 56 | % | 40 | % | ||||||
3 year | 64 | % | 64 | % | 65 | % | 61 | % | 39 | % | |||||||
5 year | 63 | % | 61 | % | 73 | % | 72 | % | 70 | % | |||||||
Asset weighted | 1 year | 56 | % | 53 | % | 53 | % | 67 | % | 51 | % | ||||||
3 year | 60 | % | 59 | % | 74 | % | 69 | % | 53 | % | |||||||
5 year | 63 | % | 51 | % | 75 | % | 80 | % | 79 | % | |||||||
Fixed Income | |||||||||||||||||
Equal weighted | 1 year | 83 | % | 79 | % | 77 | % | 73 | % | 60 | % | ||||||
3 year | 82 | % | 69 | % | 72 | % | 76 | % | 76 | % | |||||||
5 year | 72 | % | 80 | % | 72 | % | 80 | % | 69 | % | |||||||
Asset weighted | 1 year | 93 | % | 91 | % | 94 | % | 91 | % | 66 | % | ||||||
3 year | 95 | % | 89 | % | 90 | % | 96 | % | 94 | % | |||||||
5 year | 88 | % | 91 | % | 89 | % | 92 | % | 89 | % | |||||||
Allocation (Managed) Funds | |||||||||||||||||
Equal weighted | 1 year | 67 | % | 50 | % | 50 | % | 75 | % | 38 | % | ||||||
3 year | 78 | % | 88 | % | 88 | % | 88 | % | 75 | % | |||||||
5 year | 100 | % | 100 | % | 100 | % | 100 | % | 86 | % | |||||||
Asset weighted | 1 year | 60 | % | 45 | % | 48 | % | 95 | % | 41 | % | ||||||
3 year | 97 | % | 99 | % | 99 | % | 99 | % | 84 | % | |||||||
5 year | 100 | % | 100 | % | 100 | % | 100 | % | 95 | % |
The performance of each fund is measured on a consistent basis against the most appropriate benchmark - a peer group of similar funds or an index. |
Equal weighted: Counts the number of funds with above median ranking (if measured against peer group) or above index performance (if measured against an index) divided by the total number of funds. Asset size is not a factor. |
Asset weighted: Sums the assets of the funds with above median ranking (if measured against peer group) or above index performance (if measured against an index) divided by the total sum of assets in the funds. Funds with more assets will receive a greater share of the total percentage above or below median or index. |
Aggregated Allocation (Managed) Funds include funds that invest in other funds of the Threadneedle range including those funds that invest in both equity and fixed income. |
Aggregated Threadneedle data includes funds on the Threadneedle platform sub-advised by Columbia as well as advisors not affiliated with Ameriprise Financial, Inc. |
Prior Year Comparisons | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-Date | Qtr Chg - 4Q | YTD Chg - 4Q | Seq Qtr Chg - 4Q | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions unless otherwise noted, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | Diff. | % | Diff. | % | Diff. | % | ||||||||||||||||||||||||||||||||||||
Annuities Segment Adjusted Operating Income Statements | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||
Management and financial advice fees | $ | 204 | $ | 200 | $ | 200 | $ | 203 | $ | 189 | $ | 790 | $ | 792 | $ | (15 | ) | (7 | )% | $ | 2 | — | % | $ | (14 | ) | (7 | )% | |||||||||||||||||||||
Distribution fees | 89 | 88 | 88 | 89 | 82 | 346 | 347 | (7 | ) | (8 | )% | 1 | — | % | (7 | ) | (8 | )% | |||||||||||||||||||||||||||||||
Net investment income | 170 | 164 | 161 | 159 | 160 | 697 | 644 | (10 | ) | (6 | )% | (53 | ) | (8 | )% | 1 | 1 | % | |||||||||||||||||||||||||||||||
Premiums | 32 | 24 | 27 | 29 | 28 | 116 | 108 | (4 | ) | (13 | )% | (8 | ) | (7 | )% | (1 | ) | (3 | )% | ||||||||||||||||||||||||||||||
Other revenues | 143 | 137 | 146 | 148 | 154 | 550 | 585 | 11 | 8 | % | 35 | 6 | % | 6 | 4 | % | |||||||||||||||||||||||||||||||||
Total revenues | 638 | 613 | 622 | 628 | 613 | 2,499 | 2,476 | (25 | ) | (4 | )% | (23 | ) | (1 | )% | (15 | ) | (2 | )% | ||||||||||||||||||||||||||||||
Banking and deposit interest expense | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Adjusted operating total net revenues | 638 | 613 | 622 | 628 | 613 | 2,499 | 2,476 | (25 | ) | (4 | )% | (23 | ) | (1 | )% | (15 | ) | (2 | )% | ||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||
Distribution expenses | 114 | 110 | 113 | 107 | 102 | 428 | 432 | (12 | ) | (11 | )% | 4 | 1 | % | (5 | ) | (5 | )% | |||||||||||||||||||||||||||||||
Interest credited to fixed accounts | 116 | 113 | 115 | 117 | 116 | 473 | 461 | — | — | % | (12 | ) | (3 | )% | (1 | ) | (1 | )% | |||||||||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | 156 | 150 | 158 | 166 | 203 | 467 | 677 | 47 | 30 | % | 210 | 45 | % | 37 | 22 | % | |||||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | 46 | 50 | 49 | 25 | 76 | 181 | 200 | 30 | 65 | % | 19 | 10 | % | 51 | # | ||||||||||||||||||||||||||||||||||
Interest and debt expense | 9 | 9 | 10 | 10 | 11 | 35 | 40 | 2 | 22 | % | 5 | 14 | % | 1 | 10 | % | |||||||||||||||||||||||||||||||||
General and administrative expense | 49 | 49 | 48 | 50 | 54 | 205 | 201 | 5 | 10 | % | (4 | ) | (2 | )% | 4 | 8 | % | ||||||||||||||||||||||||||||||||
Adjusted operating expenses | 490 | 481 | 493 | 475 | 562 | 1,789 | 2,011 | 72 | 15 | % | 222 | 12 | % | 87 | 18 | % | |||||||||||||||||||||||||||||||||
Pretax adjusted operating earnings | $ | 148 | $ | 132 | $ | 129 | $ | 153 | $ | 51 | $ | 710 | $ | 465 | $ | (97 | ) | (66 | )% | $ | (245 | ) | (35 | )% | $ | (102 | ) | (67 | )% | ||||||||||||||||||||
Pretax adjusted operating margin | 23.2 | % | 21.5 | % | 20.7 | % | 24.4 | % | 8.3 | % | 28.4 | % | 18.8 | % | (14.9 | )% | (9.6 | )% | (16.1 | )% | |||||||||||||||||||||||||||||
Return on Capital | |||||||||||||||||||||||||||||||||||||||||||||||||
Allocated capital | $ | 1,933 | $ | 1,909 | $ | 1,911 | $ | 1,886 | $ | 1,892 | $ | 1,933 | $ | 1,892 | $ | (41 | ) | (2 | )% | $ | (41 | ) | (2 | )% | $ | 6 | — | % | |||||||||||||||||||||
Adjusted operating return on allocated capital (1) | 24.9 | % | 25.0 | % | 25.2 | % | 20.7 | % | 20.6 | % | 24.9 | % | 20.6 | % | (4.3 | )% | (4.3 | )% | (0.1 | )% | |||||||||||||||||||||||||||||
Market impact on variable annuity guaranteed benefits (2) | |||||||||||||||||||||||||||||||||||||||||||||||||
Risk margin and nonperformance spread impact | $ | 13 | $ | 28 | $ | 2 | $ | (37 | ) | $ | 157 | $ | (19 | ) | $ | 150 | $ | 144 | # | $ | 169 | # | $ | 194 | # | ||||||||||||||||||||||||
Other | (47 | ) | (33 | ) | (82 | ) | (8 | ) | (58 | ) | (213 | ) | (181 | ) | (11 | ) | (23 | )% | 32 | 15 | % | (50 | ) | # | |||||||||||||||||||||||||
Total VA guaranteed benefit impact excluded from adjusted operating earnings | $ | (34 | ) | $ | (5 | ) | $ | (80 | ) | $ | (45 | ) | $ | 99 | $ | (232 | ) | $ | (31 | ) | $ | 133 | # | $ | 201 | 87 | % | $ | 144 | # | |||||||||||||||||||
Market impact on fixed index annuity benefits (3) | |||||||||||||||||||||||||||||||||||||||||||||||||
Risk margin and nonperformance spread impact | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | — | % | $ | — | — | % | $ | — | — | % | |||||||||||||||||||||||
Other | — | — | — | — | 1 | — | 1 | 1 | — | % | 1 | — | % | 1 | — | % | |||||||||||||||||||||||||||||||||
Total fixed index annuity benefit impact excluded from adjusted operating earnings | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | 1 | $ | 1 | — | % | $ | 1 | — | % | $ | 1 | — | % | |||||||||||||||||||||||
Total annuity net flows (4) | $ | (1,144 | ) | $ | (1,162 | ) | $ | (984 | ) | $ | (1,025 | ) | $ | (1,015 | ) | $ | (4,830 | ) | $ | (4,186 | ) | $ | 129 | 11 | % | $ | 644 | 13 | % | $ | 10 | 1 | % |
(1) | Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator. |
(2) | Guaranteed Minimum Withdrawal Benefit (GMWB) and Guaranteed Minimum Accumulation Benefit (GMAB) only, net of variable annuity guarantee hedges, DSIC and DAC amortization. |
(3) | Market impact on fixed index annuity benefits, net of hedges and the related DAC amortization. |
(4) | Excludes payout annuities. |
# Variance equal to or greater than 100%. |
Prior Year Comparisons | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-Date | Qtr Chg - 4Q | YTD Chg - 4Q | Seq Qtr Chg - 4Q | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions unless otherwise noted, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | Diff. | % | Diff. | % | Diff. | % | ||||||||||||||||||||||||||||||||||||
Product Information | |||||||||||||||||||||||||||||||||||||||||||||||||
Variable Annuities | |||||||||||||||||||||||||||||||||||||||||||||||||
Pretax adjusted operating earnings | $ | 134 | $ | 116 | $ | 117 | $ | 147 | $ | 47 | $ | 639 | $ | 427 | $ | (87 | ) | (65 | )% | $ | (212 | ) | (33 | )% | $ | (100 | ) | (68 | )% | ||||||||||||||||||||
Allocated capital (1) | $ | 650 | $ | 650 | $ | 650 | $ | 650 | $ | 650 | $ | 650 | $ | 650 | $ | — | — | % | $ | — | — | % | $ | — | — | % | |||||||||||||||||||||||
Adjusted operating return on allocated capital (2) | 67.4 | % | 67.9 | % | 68.1 | % | 55.7 | % | 55.6 | % | 67.4 | % | 55.6 | % | (11.8 | )% | (11.8 | )% | (0.1 | )% | |||||||||||||||||||||||||||||
Fixed Annuities (3) | |||||||||||||||||||||||||||||||||||||||||||||||||
Pretax adjusted operating earnings | $ | 14 | $ | 16 | $ | 12 | $ | 6 | $ | 4 | $ | 71 | $ | 38 | $ | (10 | ) | (71 | )% | $ | (33 | ) | (46 | )% | $ | (2 | ) | (33 | )% | ||||||||||||||||||||
Allocated capital | $ | 1,283 | $ | 1,259 | $ | 1,261 | $ | 1,236 | $ | 1,242 | $ | 1,283 | $ | 1,242 | $ | (41 | ) | (3 | )% | $ | (41 | ) | (3 | )% | $ | 6 | — | % | |||||||||||||||||||||
Adjusted operating return on allocated capital (2) | 3.8 | % | 3.4 | % | 3.4 | % | 2.6 | % | 2.6 | % | 3.8 | % | 2.6 | % | (1.2 | )% | (1.2 | )% | — | % | |||||||||||||||||||||||||||||
Variable Annuities Rollforward | |||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 78,654 | $ | 80,340 | $ | 78,731 | $ | 78,288 | $ | 79,444 | $ | 74,817 | $ | 80,340 | $ | 790 | 1 | % | $ | 5,523 | 7 | % | $ | 1,156 | 1 | % | |||||||||||||||||||||||
Deposits | 1,175 | 1,150 | 1,228 | 1,063 | 1,017 | 4,222 | 4,458 | (158 | ) | (13 | )% | 236 | 6 | % | (46 | ) | (4 | )% | |||||||||||||||||||||||||||||||
Withdrawals and terminations | (2,073 | ) | (2,069 | ) | (1,997 | ) | (1,889 | ) | (1,803 | ) | (8,084 | ) | (7,758 | ) | 270 | 13 | % | 326 | 4 | % | 86 | 5 | % | ||||||||||||||||||||||||||
Net flows | (898 | ) | (919 | ) | (769 | ) | (826 | ) | (786 | ) | (3,862 | ) | (3,300 | ) | 112 | 12 | % | 562 | 15 | % | 40 | 5 | % | ||||||||||||||||||||||||||
Investment performance and interest credited | 2,584 | (690 | ) | 326 | 1,982 | (6,616 | ) | 9,385 | (4,998 | ) | (9,200 | ) | # | (14,383 | ) | # | (8,598 | ) | # | ||||||||||||||||||||||||||||||
Total ending balance - contract accumulation values | $ | 80,340 | $ | 78,731 | $ | 78,288 | $ | 79,444 | $ | 72,042 | $ | 80,340 | $ | 72,042 | $ | (8,298 | ) | (10 | )% | $ | (8,298 | ) | (10 | )% | $ | (7,402 | ) | (9 | )% | ||||||||||||||||||||
Variable annuities fixed sub-accounts | $ | 5,166 | $ | 5,139 | $ | 5,130 | $ | 5,127 | $ | 5,129 | $ | 5,166 | $ | 5,129 | $ | (37 | ) | (1 | )% | $ | (37 | ) | (1 | )% | $ | 2 | — | % | |||||||||||||||||||||
Fixed Deferred Annuities Rollforward | |||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 9,492 | $ | 9,320 | $ | 9,147 | $ | 9,003 | $ | 8,875 | $ | 9,991 | $ | 9,320 | $ | (617 | ) | (7 | )% | $ | (671 | ) | (7 | )% | $ | (128 | ) | (1 | )% | ||||||||||||||||||||
Deposits | 33 | 42 | 60 | 49 | 60 | 153 | 211 | 27 | 82 | % | 58 | 38 | % | 11 | 22 | % | |||||||||||||||||||||||||||||||||
Withdrawals and terminations | (279 | ) | (285 | ) | (275 | ) | (248 | ) | (289 | ) | (1,121 | ) | (1,097 | ) | (10 | ) | (4 | )% | 24 | 2 | % | (41 | ) | (17 | )% | ||||||||||||||||||||||||
Net flows | (246 | ) | (243 | ) | (215 | ) | (199 | ) | (229 | ) | (968 | ) | (886 | ) | 17 | 7 | % | 82 | 8 | % | (30 | ) | (15 | )% | |||||||||||||||||||||||||
Policyholder interest credited | 74 | 70 | 71 | 71 | 68 | 297 | 280 | (6 | ) | (8 | )% | (17 | ) | (6 | )% | (3 | ) | (4 | )% | ||||||||||||||||||||||||||||||
Total ending balance - contract accumulation values | $ | 9,320 | $ | 9,147 | $ | 9,003 | $ | 8,875 | $ | 8,714 | $ | 9,320 | $ | 8,714 | $ | (606 | ) | (7 | )% | $ | (606 | ) | (7 | )% | $ | (161 | ) | (2 | )% | ||||||||||||||||||||
Capitalized interest | $ | — | $ | — | $ | 1 | $ | (1 | ) | $ | 1 | $ | 2 | $ | 1 | $ | 1 | — | % | $ | (1 | ) | (50 | )% | $ | 2 | # | ||||||||||||||||||||||
Payout Annuities Reserve Balance | $ | 2,099 | $ | 2,093 | $ | 2,093 | $ | 2,089 | $ | 2,082 | $ | 2,099 | $ | 2,082 | $ | (17 | ) | (1 | )% | $ | (17 | ) | (1 | )% | $ | (7 | ) | — | % | ||||||||||||||||||||
Tax Equivalent Spread - Fixed Deferred Annuities (4) | |||||||||||||||||||||||||||||||||||||||||||||||||
Gross rate of return on invested assets (5) | 4.2 | % | 4.1 | % | 4.2 | % | 4.1 | % | 4.1 | % | 4.3 | % | 4.1 | % | (0.1 | )% | (0.2 | )% | — | % | |||||||||||||||||||||||||||||
Crediting rate excluding capitalized interest | (3.1 | )% | (3.1 | )% | (3.2 | )% | (3.2 | )% | (3.2 | )% | (3.1 | )% | (3.2 | )% | (0.1 | )% | (0.1 | )% | — | % | |||||||||||||||||||||||||||||
Tax equivalent margin spread | 1.1 | % | 1.0 | % | 1.0 | % | 0.9 | % | 0.9 | % | 1.2 | % | 0.9 | % | (0.2 | )% | (0.3 | )% | — | % | |||||||||||||||||||||||||||||
Total Variable Annuities DAC | |||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,737 | $ | 1,747 | $ | 1,754 | $ | 1,770 | $ | 1,803 | $ | 1,724 | $ | 1,747 | $ | 66 | 4 | % | $ | 23 | 1 | % | $ | 33 | 2 | % | |||||||||||||||||||||||
Capitalization | 43 | 42 | 46 | 40 | 39 | 156 | 167 | (4 | ) | (9 | )% | 11 | 7 | % | (1 | ) | (3 | )% | |||||||||||||||||||||||||||||||
Non adjusted operating amortization | 2 | (5 | ) | 10 | 6 | (34 | ) | 26 | (23 | ) | (36 | ) | # | (49 | ) | # | (40 | ) | # | ||||||||||||||||||||||||||||||
Amortization per income statement | (41 | ) | (45 | ) | (45 | ) | (17 | ) | (73 | ) | (162 | ) | (180 | ) | (32 | ) | (78 | )% | (18 | ) | (11 | )% | (56 | ) | # | ||||||||||||||||||||||||
Other | 6 | 15 | 5 | 4 | (2 | ) | 3 | 22 | (8 | ) | # | 19 | # | (6 | ) | # | |||||||||||||||||||||||||||||||||
Total ending balance | $ | 1,747 | $ | 1,754 | $ | 1,770 | $ | 1,803 | $ | 1,733 | $ | 1,747 | $ | 1,733 | $ | (14 | ) | (1 | )% | $ | (14 | ) | (1 | )% | $ | (70 | ) | (4 | )% | ||||||||||||||||||||
Total Fixed Deferred Annuities DAC | |||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 67 | $ | 71 | $ | 83 | $ | 87 | $ | 84 | $ | 76 | $ | 71 | $ | 17 | 25 | % | $ | (5 | ) | (7 | )% | $ | (3 | ) | (3 | )% | |||||||||||||||||||||
Capitalization | — | 1 | 1 | — | 2 | 2 | 4 | 2 | — | % | 2 | # | 2 | — | % | ||||||||||||||||||||||||||||||||||
Non adjusted operating amortization | — | — | — | — | (1 | ) | (1 | ) | (1 | ) | (1 | ) | — | % | — | — | % | (1 | ) | — | % | ||||||||||||||||||||||||||||
Amortization per income statement | (5 | ) | (5 | ) | (4 | ) | (8 | ) | (3 | ) | (19 | ) | (20 | ) | 2 | 40 | % | (1 | ) | (5 | )% | 5 | 63 | % | |||||||||||||||||||||||||
Other | 9 | 16 | 7 | 5 | (1 | ) | 13 | 27 | (10 | ) | # | 14 | # | (6 | ) | # | |||||||||||||||||||||||||||||||||
Total ending balance | $ | 71 | $ | 83 | $ | 87 | $ | 84 | $ | 81 | $ | 71 | $ | 81 | $ | 10 | 14 | % | $ | 10 | 14 | % | $ | (3 | ) | (4 | )% |
(1) | The variable annuity allocated capital calculation takes into account the capital necessary to support the business, recognizing the established reserves and potential future interest rate changes. |
(2) | Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator. |
(3) | Includes payout annuities. |
(4) | Attributable to interest sensitive products only, which has been approximately 99% of the total ending fixed deferred annuities accumulation values in the periods reported. The asset earnings rate is a calculated yield based on specifically assigned assets. |
(5) | In the 4th quarter of 2017 through the 4th quarter of 2018, the Gross rates of return on invested assets were impacted by outstanding repurchase agreements. Without these positions, the Gross rates of return on invested assets would have been 4.2%, 4.1%, 4.1%, 4.1% and 4.0% respectively. |
# Variance equal to or greater than 100%. |
Prior Year Comparisons | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-Date | Qtr Chg - 4Q | YTD Chg - 4Q | Seq Qtr Chg - 4Q | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions unless otherwise noted, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | Diff. | % | Diff. | % | Diff. | % | ||||||||||||||||||||||||||||||||||||
Protection Segment Adjusted Operating Income Statements | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||
Management and financial advice fees | $ | 14 | $ | 14 | $ | 13 | $ | 13 | $ | 12 | $ | 53 | $ | 52 | $ | (2 | ) | (14 | )% | $ | (1 | ) | (2 | )% | $ | (1 | ) | (8 | )% | ||||||||||||||||||||
Distribution fees | 26 | 24 | 25 | 25 | 25 | 96 | 99 | (1 | ) | (4 | )% | 3 | 3 | % | — | — | % | ||||||||||||||||||||||||||||||||
Net investment income | 85 | 84 | 87 | 88 | 88 | 338 | 347 | 3 | 4 | % | 9 | 3 | % | — | — | % | |||||||||||||||||||||||||||||||||
Premiums | 308 | 301 | 311 | 316 | 317 | 1,204 | 1,245 | 9 | 3 | % | 41 | 3 | % | 1 | — | % | |||||||||||||||||||||||||||||||||
Other revenues | 95 | 96 | 97 | 169 | 101 | 353 | 463 | 6 | 6 | % | 110 | 31 | % | (68 | ) | (40 | )% | ||||||||||||||||||||||||||||||||
Total revenues | 528 | 519 | 533 | 611 | 543 | 2,044 | 2,206 | 15 | 3 | % | 162 | 8 | % | (68 | ) | (11 | )% | ||||||||||||||||||||||||||||||||
Banking and deposit interest expense | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Adjusted operating total net revenues | 528 | 519 | 533 | 611 | 543 | 2,044 | 2,206 | 15 | 3 | % | 162 | 8 | % | (68 | ) | (11 | )% | ||||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||
Distribution expenses | 18 | 16 | 19 | 17 | 17 | 68 | 69 | (1 | ) | (6 | )% | 1 | 1 | % | — | — | % | ||||||||||||||||||||||||||||||||
Interest credited to fixed accounts | 48 | 49 | 48 | 52 | 51 | 186 | 200 | 3 | 6 | % | 14 | 8 | % | (1 | ) | (2 | )% | ||||||||||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | 321 | 292 | 326 | 401 | 305 | 1,209 | 1,324 | (16 | ) | (5 | )% | 115 | 10 | % | (96 | ) | (24 | )% | |||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | 26 | 25 | 27 | 7 | 30 | 96 | 89 | 4 | 15 | % | (7 | ) | (7 | )% | 23 | # | |||||||||||||||||||||||||||||||||
Interest and debt expense | 6 | 6 | 7 | 7 | 6 | 25 | 26 | — | — | % | 1 | 4 | % | (1 | ) | (14 | )% | ||||||||||||||||||||||||||||||||
General and administrative expense | 62 | 61 | 61 | 66 | 67 | 244 | 255 | 5 | 8 | % | 11 | 5 | % | 1 | 2 | % | |||||||||||||||||||||||||||||||||
Adjusted operating expenses | 481 | 449 | 488 | 550 | 476 | 1,828 | 1,963 | (5 | ) | (1 | )% | 135 | 7 | % | (74 | ) | (13 | )% | |||||||||||||||||||||||||||||||
Pretax adjusted operating earnings | $ | 47 | $ | 70 | $ | 45 | $ | 61 | $ | 67 | $ | 216 | $ | 243 | $ | 20 | 43 | % | $ | 27 | 13 | % | $ | 6 | 10 | % | |||||||||||||||||||||||
Pretax adjusted operating margin | 8.9 | % | 13.5 | % | 8.4 | % | 10.0 | % | 12.3 | % | 10.6 | % | 11.0 | % | 3.4 | % | 0.4 | % | 2.3 | % | |||||||||||||||||||||||||||||
Return on Capital | |||||||||||||||||||||||||||||||||||||||||||||||||
Allocated capital | $ | 1,339 | $ | 1,465 | $ | 1,455 | $ | 1,385 | $ | 1,477 | $ | 1,339 | $ | 1,477 | $ | 138 | 10 | % | $ | 138 | 10 | % | $ | 92 | 7 | % | |||||||||||||||||||||||
Adjusted operating return on allocated capital (1) | 10.3 | % | 10.9 | % | 10.9 | % | 11.6 | % | 14.4 | % | 10.3 | % | 14.4 | % | 4.1 | % | 4.1 | % | 2.8 | % | |||||||||||||||||||||||||||||
Market impact on indexed universal life benefits (2) | |||||||||||||||||||||||||||||||||||||||||||||||||
Risk margin and nonperformance spread impact | $ | (3 | ) | $ | (17 | ) | $ | (10 | ) | $ | 11 | $ | (42 | ) | $ | 14 | $ | (58 | ) | $ | (39 | ) | # | $ | (72 | ) | # | $ | (53 | ) | # | ||||||||||||||||||
Other | 23 | 42 | (10 | ) | (24 | ) | 33 | (10 | ) | 41 | 10 | 43 | % | 51 | # | 57 | # | ||||||||||||||||||||||||||||||||
Total market impact on indexed universal life benefits excluded from adjusted operating earnings | $ | 20 | $ | 25 | $ | (20 | ) | $ | (13 | ) | $ | (9 | ) | $ | 4 | $ | (17 | ) | $ | (29 | ) | # | $ | (21 | ) | # | $ | 4 | 31 | % | |||||||||||||||||||
Product Information | |||||||||||||||||||||||||||||||||||||||||||||||||
Life and Health (3) | |||||||||||||||||||||||||||||||||||||||||||||||||
Pretax adjusted operating earnings | $ | 73 | $ | 65 | $ | 64 | $ | 60 | $ | 64 | $ | 258 | $ | 253 | $ | (9 | ) | (12 | )% | $ | (5 | ) | (2 | )% | $ | 4 | 7 | % | |||||||||||||||||||||
Allocated capital | $ | 726 | $ | 818 | $ | 799 | $ | 759 | $ | 850 | $ | 726 | $ | 850 | $ | 124 | 17 | % | $ | 124 | 17 | % | $ | 91 | 12 | % | |||||||||||||||||||||||
Adjusted operating return on allocated capital (1) | 21.4 | % | 21.3 | % | 21.6 | % | 23.5 | % | 27 | % | 21.4 | % | 27 | % | 5.6 | % | 5.6 | % | 3.5 | % | |||||||||||||||||||||||||||||
Auto and Home Insurance | |||||||||||||||||||||||||||||||||||||||||||||||||
Pretax adjusted operating earnings (loss) | $ | (26 | ) | $ | 5 | $ | (19 | ) | $ | 1 | $ | 3 | $ | (42 | ) | $ | (10 | ) | $ | 29 | # | $ | 32 | 76 | % | $ | 2 | # | |||||||||||||||||||||
Allocated capital | $ | 613 | $ | 647 | $ | 656 | $ | 626 | $ | 627 | $ | 613 | $ | 627 | $ | 14 | 2 | % | $ | 14 | 2 | % | $ | 1 | — | % | |||||||||||||||||||||||
Adjusted operating return on allocated capital (1) | (3.1 | )% | (1.8 | )% | (2.2 | )% | (2.9 | )% | (1.3 | )% | (3.1 | )% | (1.3 | )% | 1.8 | % | 1.8 | % | 1.6 | % | |||||||||||||||||||||||||||||
Total Auto and Home catastrophe losses | $ | 38 | $ | 14 | $ | 40 | $ | 16 | $ | 12 | $ | 122 | $ | 82 | $ | (26 | ) | (68 | )% | $ | (40 | ) | (33 | )% | $ | (4 | ) | (25 | )% |
(1) | Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator. |
(2) | Market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual. |
(3) | Life and health includes captive insurance. |
# Variance equal to or greater than 100%. | |
Prior Year Comparisons | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-Date | Qtr Chg - 4Q | YTD Chg - 4Q | Seq Qtr Chg - 4Q | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions unless otherwise noted, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | Diff. | % | Diff. | % | Diff. | % | ||||||||||||||||||||||||||||||||||||
Cash Sales | |||||||||||||||||||||||||||||||||||||||||||||||||
VUL/UL (1) | $ | 84 | $ | 71 | $ | 75 | $ | 76 | $ | 75 | $ | 299 | $ | 297 | $ | (9 | ) | (11 | )% | $ | (2 | ) | (1 | )% | $ | (1 | ) | (1 | )% | ||||||||||||||||||||
Term and whole life | 2 | 2 | 2 | 2 | 2 | 8 | 8 | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Disability insurance | 1 | 1 | 1 | 1 | — | 4 | 3 | (1 | ) | # | (1 | ) | (25 | )% | (1 | ) | # | ||||||||||||||||||||||||||||||||
Auto and home | 270 | 273 | 273 | 297 | 268 | 1,129 | 1,111 | (2 | ) | (1 | )% | (18 | ) | (2 | )% | (29 | ) | (10 | )% | ||||||||||||||||||||||||||||||
Total cash sales | $ | 357 | $ | 347 | $ | 351 | $ | 376 | $ | 345 | $ | 1,440 | $ | 1,419 | $ | (12 | ) | (3 | )% | $ | (21 | ) | (1 | )% | $ | (31 | ) | (8 | )% | ||||||||||||||||||||
VUL / UL Policyholder Account Balances | |||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 12,235 | $ | 12,534 | $ | 12,465 | $ | 12,541 | $ | 12,763 | $ | 11,511 | $ | 12,534 | $ | 528 | 4 | % | $ | 1,023 | 9 | % | $ | 222 | 2 | % | |||||||||||||||||||||||
Premiums and deposits | 268 | 248 | 261 | 248 | 260 | 1,016 | 1,017 | (8 | ) | (3 | )% | 1 | — | % | 12 | 5 | % | ||||||||||||||||||||||||||||||||
Investment performance and interest | 346 | 14 | 140 | 301 | (758 | ) | 1,269 | (303 | ) | (1,104 | ) | # | (1,572 | ) | # | (1,059 | ) | # | |||||||||||||||||||||||||||||||
Withdrawals and surrenders | (314 | ) | (330 | ) | (326 | ) | (326 | ) | (316 | ) | (1,260 | ) | (1,298 | ) | (2 | ) | (1 | )% | (38 | ) | (3 | )% | 10 | 3 | % | ||||||||||||||||||||||||
Other | (1 | ) | (1 | ) | 1 | (1 | ) | 2 | (2 | ) | 1 | 3 | # | 3 | # | 3 | # | ||||||||||||||||||||||||||||||||
Total ending balance | $ | 12,534 | $ | 12,465 | $ | 12,541 | $ | 12,763 | $ | 11,951 | $ | 12,534 | $ | 11,951 | $ | (583 | ) | (5 | )% | $ | (583 | ) | (5 | )% | $ | (812 | ) | (6 | )% | ||||||||||||||||||||
Premiums by Product | |||||||||||||||||||||||||||||||||||||||||||||||||
Term and whole life | $ | 11 | $ | 11 | $ | 11 | $ | 11 | $ | 10 | $ | 44 | $ | 43 | $ | (1 | ) | (9 | )% | $ | (1 | ) | (2 | )% | $ | (1 | ) | (9 | )% | ||||||||||||||||||||
Disability insurance | 35 | 34 | 35 | 34 | 35 | 141 | 138 | — | — | % | (3 | ) | (2 | )% | 1 | 3 | % | ||||||||||||||||||||||||||||||||
Auto and home | 255 | 249 | 260 | 265 | 266 | 993 | 1,040 | 11 | 4 | % | 47 | 5 | % | 1 | — | % | |||||||||||||||||||||||||||||||||
Intercompany premiums | 7 | 7 | 5 | 6 | 6 | 26 | 24 | (1 | ) | (14 | )% | (2 | ) | (8 | )% | — | — | % | |||||||||||||||||||||||||||||||
Total premiums by product | $ | 308 | $ | 301 | $ | 311 | $ | 316 | $ | 317 | $ | 1,204 | $ | 1,245 | $ | 9 | 3 | % | $ | 41 | 3 | % | $ | 1 | — | % | |||||||||||||||||||||||
Auto and Home Insurance Details | |||||||||||||||||||||||||||||||||||||||||||||||||
Policy count (thousands) | 942 | 934 | 911 | 883 | 861 | 942 | 861 | (81) | (9 | )% | (81) | (9 | )% | (22) | (2 | )% | |||||||||||||||||||||||||||||||||
Catastrophe loss ratio | 14.9 | % | 5.6 | % | 15.6 | % | 6.4 | % | 4.7 | % | 11.5 | % | 8.1 | % | (10.2 | )% | (3.4 | )% | (1.7 | )% | |||||||||||||||||||||||||||||
Non-catastrophe /other loss ratio | 83.6 | % | 80.1 | % | 79.8 | % | 80.2 | % | 81.2 | % | 80.7 | % | 80.3 | % | (2.4 | )% | (0.4 | )% | 1.0 | % | |||||||||||||||||||||||||||||
Expense ratio | 17.2 | % | 17.9 | % | 17.6 | % | 18.4 | % | 18.4 | % | 17.8 | % | 18.1 | % | 1.2 | % | 0.3 | % | — | % | |||||||||||||||||||||||||||||
Combined ratio | 115.7 | % | 103.6 | % | 113.0 | % | 105.0 | % | 104.3 | % | 110.0 | % | 106.5 | % | (11.4 | )% | (3.5 | )% | (0.7 | )% | |||||||||||||||||||||||||||||
DAC Rollforward | |||||||||||||||||||||||||||||||||||||||||||||||||
Life and Health | |||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 837 | $ | 839 | $ | 862 | $ | 891 | $ | 926 | $ | 821 | $ | 839 | $ | 89 | 11 | % | $ | 18 | 2 | % | $ | 35 | 4 | % | |||||||||||||||||||||||
Capitalization | 24 | 20 | 20 | 22 | 21 | 84 | 83 | (3 | ) | (13 | )% | (1 | ) | (1 | )% | (1 | ) | (5 | )% | ||||||||||||||||||||||||||||||
Non adjusted operating amortization | (5 | ) | (9 | ) | 7 | 4 | 2 | — | 4 | 7 | # | 4 | — | % | (2 | ) | (50 | )% | |||||||||||||||||||||||||||||||
Amortization per income statement | (14 | ) | (12 | ) | (14 | ) | 6 | (17 | ) | (43 | ) | (37 | ) | (3 | ) | (21 | )% | 6 | 14 | % | (23 | ) | # | ||||||||||||||||||||||||||
Other | (3 | ) | 24 | 16 | 3 | 12 | (23 | ) | 55 | 15 | # | 78 | # | 9 | # | ||||||||||||||||||||||||||||||||||
Total ending balance | $ | 839 | $ | 862 | $ | 891 | $ | 926 | $ | 944 | $ | 839 | $ | 944 | $ | 105 | 13 | % | $ | 105 | 13 | % | $ | 18 | 2 | % | |||||||||||||||||||||||
Life Insurance in Force | $ | 195,931 | $ | 195,588 | $ | 195,530 | $ | 195,369 | $ | 195,146 | $ | 195,931 | $ | 195,146 | $ | (785 | ) | — | % | $ | (785 | ) | — | % | $ | (223 | ) | — | % | ||||||||||||||||||||
Net Amount at Risk | $ | 40,752 | $ | 40,655 | $ | 40,471 | $ | 40,035 | $ | 40,629 | $ | 40,752 | $ | 40,629 | $ | (123 | ) | — | % | $ | (123 | ) | — | % | $ | 594 | 1 | % | |||||||||||||||||||||
Net Policyholder Reserves | |||||||||||||||||||||||||||||||||||||||||||||||||
VUL / UL | $ | 11,851 | $ | 11,755 | $ | 11,857 | $ | 12,116 | $ | 11,243 | $ | 11,851 | $ | 11,243 | $ | (608 | ) | (5 | )% | $ | (608 | ) | (5 | )% | $ | (873 | ) | (7 | )% | ||||||||||||||||||||
Term and whole life | 197 | 195 | 193 | 191 | 189 | 197 | 189 | (8 | ) | (4 | )% | (8 | ) | (4 | )% | (2 | ) | (1 | )% | ||||||||||||||||||||||||||||||
Disability insurance | 528 | 523 | 521 | 523 | 524 | 528 | 524 | (4 | ) | (1 | )% | (4 | ) | (1 | )% | 1 | — | % | |||||||||||||||||||||||||||||||
Other insurance | 765 | 743 | 731 | 723 | 715 | 765 | 715 | (50 | ) | (7 | )% | (50 | ) | (7 | )% | (8 | ) | (1 | )% | ||||||||||||||||||||||||||||||
Auto and home loss and LAE reserves | 611 | 599 | 631 | 628 | 604 | 611 | 604 | (7 | ) | (1 | )% | (7 | ) | (1 | )% | (24 | ) | (4 | )% | ||||||||||||||||||||||||||||||
Total net policyholder reserves | $ | 13,952 | $ | 13,815 | $ | 13,933 | $ | 14,181 | $ | 13,275 | $ | 13,952 | $ | 13,275 | $ | (677 | ) | (5 | )% | $ | (677 | ) | (5 | )% | $ | (906 | ) | (6 | )% |
(1) | Includes lump sum deposits. |
# Variance equal to or greater than 100%. |
Prior Year Comparisons | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-Date | Qtr Chg - 4Q | YTD Chg - 4Q | Seq Qtr Chg - 4Q | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions unless otherwise noted, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | Diff. | % | Diff. | % | Diff. | % | ||||||||||||||||||||||||||||||||||||
Product Information (1) | |||||||||||||||||||||||||||||||||||||||||||||||||
Corporate excluding Long Term Care | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted operating total net revenues | $ | (56 | ) | $ | (9 | ) | $ | (11 | ) | $ | (22 | ) | $ | (6 | ) | $ | (95 | ) | $ | (48 | ) | $ | 50 | 89 | % | $ | 47 | 49 | % | $ | 16 | 73 | % | ||||||||||||||||
Adjusted operating expenses | 65 | 49 | 49 | 46 | 41 | 258 | 185 | (24 | ) | (37 | )% | (73 | ) | (28 | )% | (5 | ) | (11 | )% | ||||||||||||||||||||||||||||||
Pretax adjusted operating earnings (loss) | $ | (121 | ) | $ | (58 | ) | $ | (60 | ) | $ | (68 | ) | $ | (47 | ) | $ | (353 | ) | $ | (233 | ) | $ | 74 | 61 | % | $ | 120 | 34 | % | $ | 21 | 31 | % | ||||||||||||||||
Long Term Care | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted operating total net revenues | $ | 67 | $ | 66 | $ | 67 | $ | 69 | $ | 72 | $ | 268 | $ | 274 | $ | 5 | 7 | % | $ | 6 | 2 | % | $ | 3 | 4 | % | |||||||||||||||||||||||
Adjusted operating expenses | 80 | 64 | 72 | 122 | 77 | 341 | 335 | (3 | ) | (4 | )% | (6 | ) | (2 | )% | (45 | ) | (37 | )% | ||||||||||||||||||||||||||||||
Pretax adjusted operating earnings (loss) | $ | (13 | ) | $ | 2 | $ | (5 | ) | $ | (53 | ) | $ | (5 | ) | $ | (73 | ) | $ | (61 | ) | $ | 8 | 62 | % | $ | 12 | 16 | % | $ | 48 | 91 | % | |||||||||||||||||
Allocated capital | $ | 676 | $ | 681 | $ | 696 | $ | 686 | $ | 714 | $ | 676 | $ | 714 | $ | 38 | 6 | % | $ | 38 | 6 | % | $ | 28 | 4 | % |
(1) | See Exhibit B for details on Long Term Care and Corporate Excluding Long Term Care |
Prior Year Comparisons | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-Date | Qtr Chg - 4Q | YTD Chg - 4Q | Seq Qtr Chg - 4Q | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions unless otherwise noted, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | Diff. | % | Diff. | % | Diff. | % | ||||||||||||||||||||||||||||||||||||
Eliminations Adjusted Operating Income Statements | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||
Management and financial advice fees | $ | (34 | ) | $ | (34 | ) | $ | (34 | ) | $ | (34 | ) | $ | (34 | ) | $ | (138 | ) | $ | (136 | ) | $ | — | — | % | $ | 2 | 1 | % | $ | — | — | % | ||||||||||||||||
Distribution fees | (327 | ) | (315 | ) | (320 | ) | (310 | ) | (298 | ) | (1,238 | ) | (1,243 | ) | 29 | 9 | % | (5 | ) | — | % | 12 | 4 | % | |||||||||||||||||||||||||
Net investment income | (2 | ) | (1 | ) | (1 | ) | (3 | ) | (2 | ) | (3 | ) | (7 | ) | — | — | % | (4 | ) | # | 1 | 33 | % | ||||||||||||||||||||||||||
Premiums | (9 | ) | (8 | ) | (8 | ) | (9 | ) | (9 | ) | (35 | ) | (34 | ) | — | — | % | 1 | 3 | % | — | — | % | ||||||||||||||||||||||||||
Other revenues | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Total revenues | (372 | ) | (358 | ) | (363 | ) | (356 | ) | (343 | ) | (1,414 | ) | (1,420 | ) | 29 | 8 | % | (6 | ) | — | % | 13 | 4 | % | |||||||||||||||||||||||||
Banking and deposit interest expense | (1 | ) | (1 | ) | (1 | ) | (2 | ) | (2 | ) | (3 | ) | (6 | ) | (1 | ) | # | (3 | ) | # | — | — | % | ||||||||||||||||||||||||||
Adjusted operating total net revenues | (371 | ) | (357 | ) | (362 | ) | (354 | ) | (341 | ) | (1,411 | ) | (1,414 | ) | 30 | 8 | % | (3 | ) | — | % | 13 | 4 | % | |||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||
Distribution expenses | (350 | ) | (337 | ) | (344 | ) | (333 | ) | (321 | ) | (1,331 | ) | (1,335 | ) | 29 | 8 | % | (4 | ) | — | % | 12 | 4 | % | |||||||||||||||||||||||||
Interest credited to fixed accounts | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | (6 | ) | (4 | ) | (4 | ) | (3 | ) | (2 | ) | (15 | ) | (13 | ) | 4 | 67 | % | 2 | 13 | % | 1 | 33 | % | ||||||||||||||||||||||||||
Amortization of deferred acquisition costs | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Interest and debt expense | (1 | ) | — | — | — | (1 | ) | — | (1 | ) | — | — | % | (1 | ) | — | % | (1 | ) | — | % | ||||||||||||||||||||||||||||
General and administrative expense | (14 | ) | (16 | ) | (14 | ) | (18 | ) | (17 | ) | (65 | ) | (65 | ) | (3 | ) | (21 | )% | — | — | % | 1 | 6 | % | |||||||||||||||||||||||||
Adjusted operating expenses | (371 | ) | (357 | ) | (362 | ) | (354 | ) | (341 | ) | (1,411 | ) | (1,414 | ) | 30 | 8 | % | (3 | ) | — | % | 13 | 4 | % | |||||||||||||||||||||||||
Pretax adjusted operating earnings | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | — | % | $ | — | — | % | $ | — | — | % |
(1) | The majority of the amounts represent the impact of inter-segment transfer pricing for both revenues and expenses. |
# Variance equal to or greater than 100%. |
(in millions, unaudited) | December 31, 2017 | March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 2,484 | $ | 2,102 | $ | 2,431 | $ | 2,389 | $ | 2,931 | ||||||||||
Cash of consolidated investment entities | 136 | 99 | 151 | 89 | 166 | |||||||||||||||
Investments | 35,925 | 35,320 | 35,297 | 35,610 | 35,825 | |||||||||||||||
Investments of consolidated investment entities | 2,131 | 2,111 | 1,297 | 1,310 | 1,706 | |||||||||||||||
Separate account assets | 87,368 | 85,847 | 85,258 | 86,592 | 77,925 | |||||||||||||||
Receivables | 5,762 | 5,860 | 5,913 | 6,042 | 6,173 | |||||||||||||||
Receivables of consolidated investment entities | 25 | 20 | 17 | 5 | 12 | |||||||||||||||
Deferred acquisition costs | 2,676 | 2,718 | 2,768 | 2,832 | 2,776 | |||||||||||||||
Restricted and segregated cash and investments | 3,147 | 2,818 | 2,591 | 2,493 | 2,910 | |||||||||||||||
Other assets | 7,826 | 7,867 | 7,545 | 7,828 | 6,792 | |||||||||||||||
Other assets of consolidated investment entities | — | — | — | 1 | — | |||||||||||||||
Total Assets | $ | 147,480 | $ | 144,762 | $ | 143,268 | $ | 145,191 | $ | 137,216 | ||||||||||
Liabilities | ||||||||||||||||||||
Policyholder account balances, future policy benefits and claims | $ | 29,904 | $ | 29,364 | $ | 29,255 | $ | 29,204 | $ | 30,124 | ||||||||||
Separate account liabilities | 87,368 | 85,847 | 85,258 | 86,592 | 77,925 | |||||||||||||||
Customer deposits | 10,303 | 10,240 | 10,428 | 10,758 | 11,545 | |||||||||||||||
Short-term borrowings | 200 | 201 | 201 | 201 | 201 | |||||||||||||||
Long-term debt | 2,891 | 2,881 | 2,875 | 2,870 | 2,867 | |||||||||||||||
Debt of consolidated investment entities | 2,206 | 2,174 | 1,416 | 1,370 | 1,743 | |||||||||||||||
Accounts payable and accrued expenses | 1,975 | 1,609 | 1,749 | 1,867 | 1,862 | |||||||||||||||
Other liabilities | 6,575 | 6,570 | 6,426 | 6,697 | 5,239 | |||||||||||||||
Other liabilities of consolidated investment entities | 63 | 36 | 28 | 14 | 122 | |||||||||||||||
Total Liabilities | 141,485 | 138,922 | 137,636 | 139,573 | 131,628 | |||||||||||||||
Equity | ||||||||||||||||||||
Ameriprise Financial | ||||||||||||||||||||
Common shares ($.01 par) | 3 | 3 | 3 | 3 | 3 | |||||||||||||||
Additional paid-in capital | 8,085 | 8,116 | 8,171 | 8,214 | 8,260 | |||||||||||||||
Retained earnings | 11,326 | 11,796 | 12,126 | 12,498 | 12,909 | |||||||||||||||
Treasury stock | (13,648 | ) | (14,070 | ) | (14,489 | ) | (14,853 | ) | (15,293 | ) | ||||||||||
Accumulated other comprehensive income, net of tax | 229 | (5 | ) | (179 | ) | (244 | ) | (291 | ) | |||||||||||
Total Equity | 5,995 | 5,840 | 5,632 | 5,618 | 5,588 | |||||||||||||||
Total Liabilities and Equity | $ | 147,480 | $ | 144,762 | $ | 143,268 | $ | 145,191 | $ | 137,216 |
(in millions unless otherwise noted, unaudited) | December 31, 2017 | March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | |||||||||||||||
Long-term Debt Summary | ||||||||||||||||||||
Senior notes | $ | 2,850 | $ | 2,850 | $ | 2,850 | $ | 2,850 | $ | 2,850 | ||||||||||
Capital lease obligations | 38 | 34 | 31 | 28 | 25 | |||||||||||||||
Fair value of hedges, unamortized discount and debt issuance costs | 3 | (3 | ) | (6 | ) | (8 | ) | (8 | ) | |||||||||||
Total Ameriprise Financial long-term debt | 2,891 | 2,881 | 2,875 | 2,870 | 2,867 | |||||||||||||||
Non-recourse debt of consolidated investment entities | 2,208 | 2,174 | 1,416 | 1,370 | 1,743 | |||||||||||||||
Total long-term debt | $ | 5,099 | $ | 5,055 | $ | 4,291 | $ | 4,240 | $ | 4,610 | ||||||||||
Total Ameriprise Financial long-term debt | $ | 2,891 | $ | 2,881 | $ | 2,875 | $ | 2,870 | $ | 2,867 | ||||||||||
Fair value of hedges, unamortized discount and debt issuance costs | (3 | ) | 3 | 6 | 8 | 8 | ||||||||||||||
Capital lease obligations | (38 | ) | (34 | ) | (31 | ) | (28 | ) | (25 | ) | ||||||||||
Total Ameriprise Financial long-term debt excluding fair value of hedges, unamortized discount, debt issuance costs and capital lease obligations (1) | $ | 2,850 | $ | 2,850 | $ | 2,850 | $ | 2,850 | $ | 2,850 | ||||||||||
Total equity (2) | $ | 5,995 | $ | 5,840 | $ | 5,632 | $ | 5,618 | $ | 5,588 | ||||||||||
Equity of consolidated investment entities | — | — | (1 | ) | 1 | (1 | ) | |||||||||||||
Total equity excluding CIEs (1) | $ | 5,995 | $ | 5,840 | $ | 5,631 | $ | 5,619 | $ | 5,587 | ||||||||||
Total Ameriprise Financial capital | $ | 8,886 | $ | 8,721 | $ | 8,507 | $ | 8,488 | $ | 8,455 | ||||||||||
Total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, debt issuance costs, capital lease obligations and equity of CIEs (1) | $ | 8,845 | $ | 8,690 | $ | 8,481 | $ | 8,469 | $ | 8,437 | ||||||||||
Debt to capital | ||||||||||||||||||||
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital | 32.5 | % | 33.0 | % | 33.8 | % | 33.8 | % | 33.9 | % | ||||||||||
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, debt issuance costs, capital lease obligations and equity of CIEs (1) | 32.2 | % | 32.8 | % | 33.6 | % | 33.7 | % | 33.8 | % |
Ratings (as of December 31, 2018 earnings release date) | A.M. Best Company | Standard & Poor’s Rating Services | Moody’s Investors Service, Inc. | ||||||||
Claims Paying Ratings (3) | |||||||||||
RiverSource Life Insurance Company | A+ | AA- | Aa3 | ||||||||
IDS Property Casualty Ins. Company | A | N/R | N/R | ||||||||
Debt Ratings (3) | |||||||||||
Ameriprise Financial, Inc. | a- | A | A3 |
(1) | See non-GAAP financial information on pg 33. Non-GAAP financial measure reconciliations can be found on page 48. |
(2) | Includes accumulated other comprehensive income, net of tax. |
(3) | For the most current ratings information, please see the individual rating agency's website. |
N/R - Not Rated. |
(in millions unless otherwise noted, unaudited) | December 31, 2017 | March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | |||||||||||||||
Cash and cash equivalents | $ | 2,484 | $ | 2,102 | $ | 2,431 | $ | 2,389 | $ | 2,931 | ||||||||||
Investments - Ending Balances | ||||||||||||||||||||
Available-for-Sale Securities | ||||||||||||||||||||
Corporate debt securities | 15,075 | 14,434 | 14,252 | 14,391 | 14,066 | |||||||||||||||
Residential mortgage backed securities | 6,611 | 5,992 | 5,986 | 6,225 | 6,329 | |||||||||||||||
Commercial mortgage backed securities | 4,374 | 4,320 | 4,584 | 4,595 | 4,877 | |||||||||||||||
Asset backed securities | 1,580 | 1,523 | 1,575 | 1,477 | 1,398 | |||||||||||||||
Total mortgage and other asset backed securities | 12,565 | 11,835 | 12,145 | 12,297 | 12,604 | |||||||||||||||
State and municipal obligations | 2,463 | 2,395 | 2,370 | 2,359 | 2,345 | |||||||||||||||
US government and agency obligations | 503 | 1,373 | 1,424 | 1,495 | 1,745 | |||||||||||||||
Foreign government bonds and obligations | 314 | 282 | 268 | 298 | 298 | |||||||||||||||
Common and preferred stocks (2) | 7 | — | — | — | — | |||||||||||||||
Total other | 3,287 | 4,050 | 4,062 | 4,152 | 4,388 | |||||||||||||||
Total available-for-sale securities | 30,927 | 30,319 | 30,459 | 30,840 | 31,058 | |||||||||||||||
Commercial mortgage loans | 2,775 | 2,740 | 2,708 | 2,703 | 2,715 | |||||||||||||||
Allowance for loan losses | (19 | ) | (19 | ) | (19 | ) | (19 | ) | (19 | ) | ||||||||||
Commercial mortgage loans, net | 2,756 | 2,721 | 2,689 | 2,684 | 2,696 | |||||||||||||||
Policy loans | 845 | 844 | 851 | 854 | 861 | |||||||||||||||
Other Investments (2) | 1,397 | 1,436 | 1,298 | 1,232 | 1,210 | |||||||||||||||
Total investments | 35,925 | 35,320 | 35,297 | 35,610 | 35,825 | |||||||||||||||
Total cash, cash equivalents and investments | $ | 38,409 | $ | 37,422 | $ | 37,728 | $ | 37,999 | $ | 38,756 | ||||||||||
Net unrealized gain Available-for-Sale Securities | $ | 1,435 | $ | 878 | $ | 607 | $ | 497 | $ | 387 | ||||||||||
AFS Fixed Maturity Asset Quality - % | ||||||||||||||||||||
AAA | 37 | % | 39 | % | 40 | % | 41 | % | 43 | % | ||||||||||
AA | 7 | % | 6 | % | 6 | % | 6 | % | 5 | % | ||||||||||
AFS securities AA and above | 44 | % | 45 | % | 46 | % | 47 | % | 48 | % | ||||||||||
A | 17 | % | 15 | % | 15 | % | 14 | % | 13 | % | ||||||||||
BBB | 35 | % | 36 | % | 36 | % | 36 | % | 36 | % | ||||||||||
Below investment grade | 4 | % | 4 | % | 3 | % | 3 | % | 3 | % | ||||||||||
Total AFS fixed maturity asset quality - % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
Fair Value of Below Investment Grade Investments as a % of Total Cash and Investments | 4 | % | 4 | % | 4 | % | 4 | % | 3 | % |
(1) | Investments excluding investments of CIEs. |
(2) | Beginning in the first quarter of 2018, equity securities, which were previously included in Available-for-Sale Securities, were reclassified to Other investments. |
Advice & Wealth Management | Annuities | Protection | Corporate and Eliminations | |||||||||||||||||||||||||||||||||||||
Market Impact on | Market Impact on | Market Impact on | Market Impact | |||||||||||||||||||||||||||||||||||||
Securities | Securities | VA Guaranteed | Fixed Index | Securities | Indexed Universal | Securities | of Hedges | Integration | ||||||||||||||||||||||||||||||||
(in millions, unaudited) | Gains/(Losses) (1) | Gains/(Losses) (1) | Benefits (2) | Annuity Benefits (3) | Gains/(Losses) (1) | Life Benefits (4) | Gains/(Losses) (1) | CIEs (5) | on Investments (6) | Charges (7) | ||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||
Management and financial advice fees | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (2 | ) | $ | — | $ | — | |||||||||||||||||||
Distribution fees | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Net investment income | (1 | ) | 3 | — | — | (3 | ) | — | (4 | ) | 36 | (16 | ) | — | ||||||||||||||||||||||||||
Premiums | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Other revenues | — | — | — | — | — | (2 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Total revenues | (1 | ) | 3 | — | — | (3 | ) | (2 | ) | (4 | ) | 34 | (16 | ) | — | |||||||||||||||||||||||||
Banking and deposit interest expense | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Total net revenues | (1 | ) | 3 | — | — | (3 | ) | (2 | ) | (4 | ) | 34 | (16 | ) | — | |||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||||
Distribution expenses | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Interest credited to fixed accounts | — | — | — | (1 | ) | — | 9 | — | — | — | — | |||||||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | — | — | (133 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | — | 1 | 34 | — | — | (2 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Interest and debt expense | — | — | — | — | — | — | — | 32 | — | — | ||||||||||||||||||||||||||||||
General and administrative expense | — | — | — | — | — | — | — | 3 | — | 3 | ||||||||||||||||||||||||||||||
Total expenses | — | 1 | (99 | ) | (1 | ) | — | 7 | — | 35 | — | 3 | ||||||||||||||||||||||||||||
Pretax segment income (loss) | $ | (1 | ) | $ | 2 | $ | 99 | $ | 1 | $ | (3 | ) | $ | (9 | ) | $ | (4 | ) | $ | (1 | ) | $ | (16 | ) | $ | (3 | ) |
Included in Adjusted Operating Earnings | ||||||||||||||||||||||||
Annuities | Protection | Corporate | Consolidated | |||||||||||||||||||||
Mean Reversion | Mean Reversion | Auto & Home | Department of | Excess Tax Benefits | ||||||||||||||||||||
Related | Related | Catastrophe | Labor Implementation | Severance | from Share- | |||||||||||||||||||
(in millions, unaudited) | Impacts (8) | Impacts (8) | Losses (9) | Costs (10) | Expense (11) | Based Payments (12) | ||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Management and financial advice fees | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Distribution fees | — | — | — | — | — | — | ||||||||||||||||||
Net investment income | — | — | — | — | — | — | ||||||||||||||||||
Premiums | — | — | — | — | — | — | ||||||||||||||||||
Other revenues | — | — | — | — | — | — | ||||||||||||||||||
Total revenues | — | — | — | — | — | — | ||||||||||||||||||
Banking and deposit interest expense | — | — | — | — | — | — | ||||||||||||||||||
Adjusted operating total net revenues | — | — | — | — | — | — | ||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Distribution expenses | — | — | — | — | — | — | ||||||||||||||||||
Interest credited to fixed accounts | — | — | — | — | — | — | ||||||||||||||||||
Benefits, claims, losses and settlement expenses | 39 | — | 12 | — | — | — | ||||||||||||||||||
Amortization of deferred acquisition costs | 29 | 3 | — | — | — | — | ||||||||||||||||||
Interest and debt expense | — | — | — | — | — | — | ||||||||||||||||||
General and administrative expense | — | — | — | 1 | 1 | — | ||||||||||||||||||
Adjusted operating expenses | 68 | 3 | 12 | 1 | 1 | — | ||||||||||||||||||
Pretax adjusted operating earnings | $ | (68 | ) | $ | (3 | ) | $ | (12 | ) | $ | (1 | ) | $ | (1 | ) | $ | — | |||||||
Tax benefit (expense) | $ | 2 |
Annuities | Protection | Corporate and Eliminations | ||||||||||||||||||||||||||||||
Market Impact on | Market Impact on | Market Impact on | Market Impact | |||||||||||||||||||||||||||||
Securities | VA Guaranteed | Fixed Index | Indexed Universal | Securities | of Hedges | Integration | ||||||||||||||||||||||||||
(in millions, unaudited) | Gains/(Losses) (1) | Benefits (2) | Annuity Benefits (3) | Life Benefits (4) | Gains/(Losses) (1) | CIEs (5) | on Investments (6) | Charges (7) | ||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Management and financial advice fees | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (2 | ) | $ | — | $ | — | |||||||||||||||
Distribution fees | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net investment income | 3 | — | — | — | 1 | 24 | 6 | — | ||||||||||||||||||||||||
Premiums | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Other revenues | — | — | — | (8 | ) | — | — | — | — | |||||||||||||||||||||||
Total revenues | 3 | — | — | (8 | ) | 1 | 22 | 6 | — | |||||||||||||||||||||||
Banking and deposit interest expense | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total net revenues | 3 | — | — | (8 | ) | 1 | 22 | 6 | — | |||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||
Distribution expenses | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Interest credited to fixed accounts | — | — | — | 9 | — | — | — | — | ||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | — | 51 | — | — | — | — | — | — | ||||||||||||||||||||||||
Amortization of deferred acquisition costs | — | (6 | ) | — | (4 | ) | — | — | — | — | ||||||||||||||||||||||
Interest and debt expense | — | — | — | — | — | 19 | — | — | ||||||||||||||||||||||||
General and administrative expense | — | — | — | — | — | 3 | — | 9 | ||||||||||||||||||||||||
Total expenses | — | 45 | — | 5 | — | 22 | — | 9 | ||||||||||||||||||||||||
Pretax segment income (loss) | $ | 3 | $ | (45 | ) | $ | — | $ | (13 | ) | $ | 1 | $ | — | $ | 6 | $ | (9 | ) |
Included in Adjusted Operating Earnings | ||||||||||||||||||||||||||||||||||||||||
Annuities | Protection | Corporate | Consolidated | |||||||||||||||||||||||||||||||||||||
Mean Reversion | Valuation | Valuation | Modification of costs | Auto & Home | Valuation | Department of | Affordable Housing | Excess Tax Benefits | ||||||||||||||||||||||||||||||||
Related | Assumption & | Assumption & | within Reinsurance | Catastrophe | Assumption & | Labor Implementation | Investment | from Share- | Tax | |||||||||||||||||||||||||||||||
(in millions, unaudited) | Impacts (8) | Model Changes (9) | Model Changes (9) | Contract (10) | Losses (11) | Model Changes (9) | Costs (12) | Adjustment (13) | Based Payments (14) | Benefit (15) | ||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||
Management and financial advice fees | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
Distribution fees | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | (7 | ) | — | — | |||||||||||||||||||||||||||||
Premiums | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Other revenues | — | — | 78 | (10 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total revenues | — | — | 78 | (10 | ) | — | — | — | (7 | ) | — | — | ||||||||||||||||||||||||||||
Banking and deposit interest expense | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Adjusted operating total net revenues | — | — | 78 | (10 | ) | — | — | — | (7 | ) | — | — | ||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||||
Distribution expenses | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Interest credited to fixed accounts | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | (16 | ) | 18 | 101 | — | 16 | 52 | — | — | — | — | |||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | (8 | ) | (17 | ) | (18 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Interest and debt expense | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
General and administrative expense | — | — | — | — | — | — | 1 | — | — | — | ||||||||||||||||||||||||||||||
Adjusted operating expenses | (24 | ) | 1 | 83 | — | 16 | 52 | 1 | — | — | — | |||||||||||||||||||||||||||||
Pretax adjusted operating earnings | $ | 24 | $ | (1 | ) | $ | (5 | ) | $ | (10 | ) | $ | (16 | ) | $ | (52 | ) | $ | (1 | ) | $ | (7 | ) | $ | — | $ | — | |||||||||||||
Tax benefit (expense) | $ | 2 | $ | 20 |
Annuities | Protection | Corporate and Eliminations | ||||||||||||||||||||||||||||||
Market Impact on | Market Impact on | Market Impact on | Market Impact | |||||||||||||||||||||||||||||
Securities | VA Guaranteed | Fixed Index | Securities | Indexed Universal | of Hedges | Integration | ||||||||||||||||||||||||||
(in millions, unaudited) | Gains/(Losses) (1) | Benefits (2) | Annuity Benefits (3) | Gains/(Losses) (1) | Life Benefits (4) | CIEs (5) | on Investments (6) | Charges (7) | ||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Management and financial advice fees | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (2 | ) | $ | — | $ | — | |||||||||||||||
Distribution fees | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net investment income | 4 | — | — | 1 | — | 51 | 5 | — | ||||||||||||||||||||||||
Premiums | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Other revenues | — | — | — | — | (10 | ) | — | — | — | |||||||||||||||||||||||
Total revenues | 4 | — | — | 1 | (10 | ) | 49 | 5 | — | |||||||||||||||||||||||
Banking and deposit interest expense | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total net revenues | 4 | — | — | 1 | (10 | ) | 49 | 5 | — | |||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||
Distribution expenses | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Interest credited to fixed accounts | — | — | — | — | 17 | — | — | — | ||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | — | 90 | — | — | — | — | — | — | ||||||||||||||||||||||||
Amortization of deferred acquisition costs | — | (10 | ) | — | — | (7 | ) | — | — | — | ||||||||||||||||||||||
Interest and debt expense | — | — | — | — | — | 49 | — | — | ||||||||||||||||||||||||
General and administrative expense | — | — | — | — | — | — | — | 4 | ||||||||||||||||||||||||
Total expenses | — | 80 | — | — | 10 | 49 | — | 4 | ||||||||||||||||||||||||
Pretax segment income (loss) | $ | 4 | $ | (80 | ) | $ | — | $ | 1 | $ | (20 | ) | $ | — | $ | 5 | $ | (4 | ) |
Included in Adjusted Operating Earnings | ||||||||||||||||||||
Annuities | Protection | Corporate | Consolidated | |||||||||||||||||
Mean Reversion | Mean Reversion | Auto & Home | Department of | Excess Tax Benefits | ||||||||||||||||
Related | Related | Catastrophe | Labor Implementation | from Share- | ||||||||||||||||
(in millions, unaudited) | Impacts (8) | Impacts (8) | Losses (9) | Costs (10) | Based Payments (11) | |||||||||||||||
Revenues | ||||||||||||||||||||
Management and financial advice fees | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Distribution fees | — | — | — | — | — | |||||||||||||||
Net investment income | — | — | — | — | — | |||||||||||||||
Premiums | — | — | — | — | — | |||||||||||||||
Other revenues | — | — | — | — | — | |||||||||||||||
Total revenues | — | — | — | — | — | |||||||||||||||
Banking and deposit interest expense | — | — | — | — | — | |||||||||||||||
Adjusted operating total net revenues | — | — | — | — | — | |||||||||||||||
Expenses | ||||||||||||||||||||
Distribution expenses | — | — | — | — | — | |||||||||||||||
Interest credited to fixed accounts | — | — | — | — | — | |||||||||||||||
Benefits, claims, losses and settlement expenses | (5 | ) | — | 40 | — | — | ||||||||||||||
Amortization of deferred acquisition costs | (2 | ) | (1 | ) | — | — | — | |||||||||||||
Interest and debt expense | — | — | — | — | — | |||||||||||||||
General and administrative expense | — | — | — | 3 | — | |||||||||||||||
Adjusted operating expenses | (7 | ) | (1 | ) | 40 | 3 | — | |||||||||||||
Pretax adjusted operating earnings | $ | 7 | $ | 1 | $ | (40 | ) | $ | (3 | ) | $ | — | ||||||||
Tax benefit (expense) | $ | 1 |
Advice & Wealth Management | Annuities | Protection | Corporate and Eliminations | |||||||||||||||||||||||||||||||||||||
Market Impact on | Market Impact on | Market Impact on | Market Impact | |||||||||||||||||||||||||||||||||||||
Securities | Securities | VA Guaranteed | Fixed Index | Securities | Indexed Universal | Securities | of Hedges | Integration | ||||||||||||||||||||||||||||||||
(in millions, unaudited) | Gains/(Losses) (1) | Gains/(Losses) (1) | Benefits (2) | Annuity Benefits (3) | Gains/(Losses) (1) | Life Benefits (4) | Gains/(Losses) (1) | CIEs (5) | on Investments (6) | Charges (7) | ||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||
Management and financial advice fees | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (4 | ) | $ | — | $ | — | |||||||||||||||||||
Distribution fees | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Net investment income | 1 | 8 | — | — | (1 | ) | — | (2 | ) | 26 | 16 | — | ||||||||||||||||||||||||||||
Premiums | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Other revenues | — | — | — | — | — | 13 | — | — | — | — | ||||||||||||||||||||||||||||||
Total revenues | 1 | 8 | — | — | (1 | ) | 13 | (2 | ) | 22 | 16 | — | ||||||||||||||||||||||||||||
Banking and deposit interest expense | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Total net revenues | 1 | 8 | — | — | (1 | ) | 13 | (2 | ) | 22 | 16 | — | ||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||||
Distribution expenses | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Interest credited to fixed accounts | — | — | — | — | — | (21 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | — | — | 5 | — | — | 9 | — | — | — | — | ||||||||||||||||||||||||||||||
Interest and debt expense | — | — | — | — | — | — | — | 21 | — | — | ||||||||||||||||||||||||||||||
General and administrative expense | — | — | — | — | — | — | — | 1 | — | 3 | ||||||||||||||||||||||||||||||
Total expenses | — | — | 5 | — | — | (12 | ) | — | 22 | — | 3 | |||||||||||||||||||||||||||||
Pretax segment income (loss) | $ | 1 | $ | 8 | $ | (5 | ) | $ | — | $ | (1 | ) | $ | 25 | $ | (2 | ) | $ | — | $ | 16 | $ | (3 | ) |
Included in Adjusted Operating Earnings | ||||||||||||||||||||
Asset Management | Annuities | Protection | Corporate | Consolidated | ||||||||||||||||
EMEA | Mean Reversion | Auto & Home | Department of | Excess Tax Benefits | ||||||||||||||||
Change | Related | Catastrophe | Labor Implementation | from Share- | ||||||||||||||||
(in millions, unaudited) | Initiatives (8) | Impacts (9) | Losses (10) | Costs (11) | Based Payments (12) | |||||||||||||||
Revenues | ||||||||||||||||||||
Management and financial advice fees | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Distribution fees | — | — | — | — | — | |||||||||||||||
Net investment income | — | — | — | — | — | |||||||||||||||
Premiums | — | — | — | — | — | |||||||||||||||
Other revenues | 14 | — | — | — | — | |||||||||||||||
Total revenues | 14 | — | — | — | — | |||||||||||||||
Banking and deposit interest expense | — | — | — | — | — | |||||||||||||||
Adjusted operating total net revenues | 14 | — | — | — | — | |||||||||||||||
Expenses | ||||||||||||||||||||
Distribution expenses | — | — | — | — | — | |||||||||||||||
Interest credited to fixed accounts | — | — | — | — | — | |||||||||||||||
Benefits, claims, losses and settlement expenses | — | (6 | ) | 14 | — | — | ||||||||||||||
Amortization of deferred acquisition costs | — | — | — | — | — | |||||||||||||||
Interest and debt expense | — | — | — | — | — | |||||||||||||||
General and administrative expense | 5 | — | — | 3 | — | |||||||||||||||
Adjusted operating expenses | 5 | (6 | ) | 14 | 3 | — | ||||||||||||||
Pretax adjusted operating earnings | $ | 9 | $ | 6 | $ | (14 | ) | $ | (3 | ) | $ | — | ||||||||
Tax benefit (expense) | $ | 20 |
Advice & Wealth Management | Annuities | Protection | Corporate and Eliminations | |||||||||||||||||||||||||||||
Market Impact on | Market Impact on | Market Impact on | Market Impact | |||||||||||||||||||||||||||||
Securities | Securities | VA Guaranteed | Fixed Index | Indexed Universal | of Hedges | Integration | ||||||||||||||||||||||||||
(in millions, unaudited) | Gains/(Losses) (1) | Gains/(Losses) (1) | Benefits (2) | Annuity Benefits (3) | Life Benefits (4) | CIEs (5) | on Investments (6) | Charges (7) | ||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Management and financial advice fees | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (3 | ) | $ | — | $ | — | |||||||||||||||
Distribution fees | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net investment income | 3 | 8 | — | — | — | 27 | 6 | — | ||||||||||||||||||||||||
Premiums | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Other revenues | — | — | — | — | 8 | — | — | — | ||||||||||||||||||||||||
Total revenues | 3 | 8 | — | — | 8 | 24 | 6 | — | ||||||||||||||||||||||||
Banking and deposit interest expense | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total net revenues | 3 | 8 | — | — | 8 | 24 | 6 | — | ||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||
Distribution expenses | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Interest credited to fixed accounts | — | — | — | — | (17 | ) | — | — | — | |||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | — | — | 36 | — | — | — | — | — | ||||||||||||||||||||||||
Amortization of deferred acquisition costs | — | — | (2 | ) | — | 5 | — | — | — | |||||||||||||||||||||||
Interest and debt expense | — | — | — | — | — | 24 | — | — | ||||||||||||||||||||||||
General and administrative expense | — | — | — | — | — | — | — | 4 | ||||||||||||||||||||||||
Total expenses | — | — | 34 | — | (12 | ) | 24 | — | 4 | |||||||||||||||||||||||
Pretax segment income (loss) | $ | 3 | $ | 8 | $ | (34 | ) | $ | — | $ | 20 | $ | — | $ | 6 | $ | (4 | ) | ||||||||||||||
Included in Adjusted Operating Earnings | ||||||||||||||||||||||||||||||||
Annuities | Protection | Corporate | Consolidated | |||||||||||||||||||||||||||||
Mean Reversion | Auto & Home | Department of | Excess Tax Benefits | |||||||||||||||||||||||||||||
Related | Catastrophe | Labor Implementation | Tax Act | Severance | from Share- | Tax Act | ||||||||||||||||||||||||||
(in millions, unaudited) | Impacts (8) | Losses (9) | Costs (10) | Impact (11) | Expense (12) | Based Payments (13) | Impact (14) | |||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Management and financial advice fees | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Distribution fees | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net investment income | — | — | — | (51 | ) | — | — | — | ||||||||||||||||||||||||
Premiums | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Other revenues | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Total revenues | — | — | — | (51 | ) | — | — | — | ||||||||||||||||||||||||
Banking and deposit interest expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Adjusted operating total net revenues | — | — | — | (51 | ) | — | — | — | ||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||
Distribution expenses | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Interest credited to fixed accounts | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | (11 | ) | 38 | — | — | — | — | — | ||||||||||||||||||||||||
Amortization of deferred acquisition costs | (9 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||
Interest and debt expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||
General and administrative expense | — | — | 6 | — | 7 | — | — | |||||||||||||||||||||||||
Adjusted operating expenses | (20 | ) | 38 | 6 | — | 7 | — | — | ||||||||||||||||||||||||
Pretax adjusted operating earnings | $ | 20 | $ | (38 | ) | $ | (6 | ) | $ | (51 | ) | $ | (7 | ) | $ | — | $ | — | ||||||||||||||
Tax benefit (expense) | $ | 13 | $ | (269 | ) |
Prior Year Comparisons | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-Date | Qtr Chg - 4Q | YTD Chg - 4Q | Seq Qtr Chg - 4Q | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions unless otherwise noted, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | Diff. | % | Diff. | % | Diff. | % | ||||||||||||||||||||||||||||||||||||
Corporate Excluding Long Term Care Adjusted Operating Income Statements | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||
Management and financial advice fees | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | — | % | $ | — | — | % | $ | — | — | % | |||||||||||||||||||||||
Distribution fees | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Net investment income | (58 | ) | (10 | ) | (10 | ) | (22 | ) | (6 | ) | (99 | ) | (48 | ) | 52 | 90 | % | 51 | 52 | % | 16 | 73 | % | ||||||||||||||||||||||||||
Premiums | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Other revenues | 3 | 2 | — | 2 | 2 | 7 | 6 | (1 | ) | (33 | )% | (1 | ) | (14 | )% | — | — | % | |||||||||||||||||||||||||||||||
Total revenues | (55 | ) | (8 | ) | (10 | ) | (20 | ) | (4 | ) | (92 | ) | (42 | ) | 51 | 93 | % | 50 | 54 | % | 16 | 80 | % | ||||||||||||||||||||||||||
Banking and deposit interest expense | 1 | 1 | 1 | 2 | 2 | 3 | 6 | 1 | # | 3 | # | — | — | % | |||||||||||||||||||||||||||||||||||
Adjusted operating total net revenues | (56 | ) | (9 | ) | (11 | ) | (22 | ) | (6 | ) | (95 | ) | (48 | ) | 50 | 89 | % | 47 | 49 | % | 16 | 73 | % | ||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||
Distribution expenses | — | — | — | — | — | 1 | — | — | — | % | (1 | ) | # | — | — | % | |||||||||||||||||||||||||||||||||
Interest credited to fixed accounts | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Interest and debt expense | 4 | 3 | 3 | 3 | 4 | 16 | 13 | — | — | % | (3 | ) | (19 | )% | 1 | 33 | % | ||||||||||||||||||||||||||||||||
General and administrative expense | 61 | 46 | 46 | 43 | 37 | 241 | 172 | (24 | ) | (39 | )% | (69 | ) | (29 | )% | (6 | ) | (14 | )% | ||||||||||||||||||||||||||||||
Adjusted operating expenses | 65 | 49 | 49 | 46 | 41 | 258 | 185 | (24 | ) | (37 | )% | (73 | ) | (28 | )% | (5 | ) | (11 | )% | ||||||||||||||||||||||||||||||
Pretax adjusted operating earnings (loss) | $ | (121 | ) | $ | (58 | ) | $ | (60 | ) | $ | (68 | ) | $ | (47 | ) | $ | (353 | ) | $ | (233 | ) | $ | 74 | 61 | % | $ | 120 | 34 | % | $ | 21 | 31 | % |
# Variance equal to or greater than 100%. |
Prior Year Comparisons | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-Date | Qtr Chg - 4Q | YTD Chg - 4Q | Seq Qtr Chg - 4Q | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions unless otherwise noted, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | Diff. | % | Diff. | % | Diff. | % | ||||||||||||||||||||||||||||||||||||
Long Term Care Adjusted Operating Income Statements | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||
Management and financial advice fees | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | — | % | $ | — | — | % | $ | — | — | % | |||||||||||||||||||||||
Distribution fees | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Net investment income | 39 | 40 | 40 | 42 | 45 | 159 | 167 | 6 | 15 | % | 8 | 5 | % | 3 | 7 | % | |||||||||||||||||||||||||||||||||
Premiums | 28 | 26 | 27 | 27 | 27 | 109 | 107 | (1 | ) | (4 | )% | (2 | ) | (2 | )% | — | — | % | |||||||||||||||||||||||||||||||
Other revenues | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Total revenues | 67 | 66 | 67 | 69 | 72 | 268 | 274 | 5 | 7 | % | 6 | 2 | % | 3 | 4 | % | |||||||||||||||||||||||||||||||||
Banking and deposit interest expense | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Adjusted operating total net revenues | 67 | 66 | 67 | 69 | 72 | 268 | 274 | 5 | 7 | % | 6 | 2 | % | 3 | 4 | % | |||||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||
Distribution expenses | (4 | ) | (2 | ) | (3 | ) | (3 | ) | (3 | ) | (12 | ) | (11 | ) | 1 | 25 | % | 1 | 8 | % | — | — | % | ||||||||||||||||||||||||||
Interest credited to fixed accounts | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Benefits, claims, losses and settlement expenses | 74 | 56 | 65 | 114 | 71 | 313 | 306 | (3 | ) | (4 | )% | (7 | ) | (2 | )% | (43 | ) | (38 | )% | ||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | — | — | — | — | — | — | — | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||
Interest and debt expense | 3 | 3 | 3 | 3 | 3 | 11 | 12 | — | — | % | 1 | 9 | % | — | — | % | |||||||||||||||||||||||||||||||||
General and administrative expense | 7 | 7 | 7 | 8 | 6 | 29 | 28 | (1 | ) | (14 | )% | (1 | ) | (3 | )% | (2 | ) | (25 | )% | ||||||||||||||||||||||||||||||
Adjusted operating expenses | 80 | 64 | 72 | 122 | 77 | 341 | 335 | (3 | ) | (4 | )% | (6 | ) | (2 | )% | (45 | ) | (37 | )% | ||||||||||||||||||||||||||||||
Pretax adjusted operating earnings (loss) | $ | (13 | ) | $ | 2 | $ | (5 | ) | $ | (53 | ) | $ | (5 | ) | $ | (73 | ) | $ | (61 | ) | $ | 8 | 62 | % | $ | 12 | 16 | % | $ | 48 | 91 | % | |||||||||||||||||
Net Policyholder Long Term Care Reserves (1) | |||||||||||||||||||||||||||||||||||||||||||||||||
Active Life Reserves | $ | 2,087 | $ | 2,036 | $ | 2,009 | $ | 2,070 | $ | 2,018 | $ | 2,087 | $ | 2,018 | $ | (69 | ) | (3 | )% | $ | (69 | ) | (3 | )% | $ | (52 | ) | (3 | )% | ||||||||||||||||||||
Disabled Life Reserves | 504 | 507 | 515 | 523 | 535 | 504 | 535 | 31 | 6 | % | 31 | 6 | % | 12 | 2 | % | |||||||||||||||||||||||||||||||||
Total net policyholder long term care reserves | $ | 2,591 | $ | 2,543 | $ | 2,524 | $ | 2,593 | $ | 2,553 | $ | 2,591 | $ | 2,553 | $ | (38 | ) | (1 | )% | $ | (38 | ) | (1 | )% | $ | (40 | ) | (2 | )% |
(1) | SFAS 115 requires GAAP reserves to include all unrealized gains on available for sale securities in the portfolio to be reported as if they were realized on the last day of the accounting period with all financial impacts flowing through other comprehensive income. |
Year-to-date | ||||||||||||||||||||||||||||
(in millions unless otherwise noted, unaudited) | 4 Qtr 2017 | 1 Qtr 2018 | 2 Qtr 2018 | 3 Qtr 2018 | 4 Qtr 2018 | 2017 | 2018 | |||||||||||||||||||||
Return on Equity | ||||||||||||||||||||||||||||
Net income (last twelve months) | $ | 1,480 | $ | 1,671 | $ | 1,740 | $ | 1,736 | $ | 2,098 | $ | 1,480 | $ | 2,098 | ||||||||||||||
Less adjustments (1) | (123 | ) | (63 | ) | (89 | ) | (89 | ) | (37 | ) | (123 | ) | (37 | ) | ||||||||||||||
Adjusted operating earnings (last twelve months) | $ | 1,603 | $ | 1,734 | $ | 1,829 | $ | 1,825 | $ | 2,135 | $ | 1,603 | $ | 2,135 | ||||||||||||||
Total Ameriprise Financial shareholders' equity (five point quarter end average) | $ | 6,212 | $ | 6,122 | $ | 6,004 | $ | 5,878 | $ | 5,735 | $ | 6,212 | $ | 5,735 | ||||||||||||||
Less AOCI, net of tax (five point quarter end average) | 252 | 210 | 131 | 22 | (98 | ) | 252 | (98 | ) | |||||||||||||||||||
Total Ameriprise Financial shareholders' equity excluding AOCI (five point quarter end average) | 5,960 | 5,912 | 5,873 | 5,856 | 5,833 | 5,960 | 5,833 | |||||||||||||||||||||
Less equity impacts attributable to the consolidated investment entities (five point quarter end average) | — | 1 | 1 | 1 | 1 | — | 1 | |||||||||||||||||||||
Adjusted operating equity (five point quarter end average) | $ | 5,960 | $ | 5,911 | $ | 5,872 | $ | 5,855 | $ | 5,832 | $ | 5,960 | $ | 5,832 | ||||||||||||||
Return on equity excluding AOCI | 24.8 | % | 28.3 | % | 29.6 | % | 29.6 | % | 36.0 | % | 24.8 | % | 36.0 | % | ||||||||||||||
Adjusted operating return on equity excluding AOCI | 26.9 | % | 29.3 | % | 31.1 | % | 31.2 | % | 36.6 | % | 26.9 | % | 36.6 | % | ||||||||||||||
Effective Tax Rate | ||||||||||||||||||||||||||||
Pretax income | $ | 595 | $ | 696 | $ | 548 | $ | 588 | $ | 652 | $ | 2,214 | $ | 2,484 | ||||||||||||||
Less adjustments (2) | (1 | ) | 39 | (94 | ) | (57 | ) | 65 | (189 | ) | (47 | ) | ||||||||||||||||
Pretax adjusted operating earnings | $ | 596 | $ | 657 | $ | 642 | $ | 645 | $ | 587 | $ | 2,403 | $ | 2,531 | ||||||||||||||
Income tax provision | $ | 418 | $ | 102 | $ | 86 | $ | 85 | $ | 113 | $ | 734 | $ | 386 | ||||||||||||||
Adjusted operating income tax provision | $ | 418 | $ | 94 | $ | 106 | $ | 97 | $ | 99 | $ | 800 | $ | 396 | ||||||||||||||
Effective tax rate | 70.3 | % | 14.7 | % | 15.7 | % | 14.4 | % | 17.3 | % | 33.1 | % | 15.5 | % | ||||||||||||||
Adjusted operating effective tax rate | 70.1 | % | 14.3 | % | 16.5 | % | 15.0 | % | 16.9 | % | 33.3 | % | 15.6 | % |
(1) | Adjustments reflect the trailing twelve months' sum of after-tax net realized investment gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on variable annuity guaranteed benefits, net of hedges and the related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact on fixed index annuity benefits, net of hedges and the related DAC amortization; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration/restructuring charges; and net income (loss) from consolidated investment entities. After-tax is calculated using the statutory tax rate of 35% in 2017 and 21% in 2018. |
(2) | Adjustments reflect net realized investment gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on variable annuity guaranteed benefits net of hedges and the related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact on fixed index annuity benefits, net of hedges and the related DAC amortization; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration/restructuring charges; and the impact of consolidated investment entities. |
(in millions unless otherwise noted, unaudited) | December 31, 2017 | March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | |||||||||||||||
Long-term Debt Summary | ||||||||||||||||||||
Senior notes | $ | 2,850 | $ | 2,850 | $ | 2,850 | $ | 2,850 | $ | 2,850 | ||||||||||
Capital lease obligations | 38 | 34 | 31 | 28 | 25 | |||||||||||||||
Fair value of hedges, unamortized discount and debt issuance costs | 3 | (3 | ) | (6 | ) | (8 | ) | (8 | ) | |||||||||||
Total Ameriprise Financial long-term debt | 2,891 | 2,881 | 2,875 | 2,870 | 2,867 | |||||||||||||||
Less fair value of hedges, unamortized discount and debt issuance costs | 3 | (3 | ) | (6 | ) | (8 | ) | (8 | ) | |||||||||||
Less capital lease obligations | 38 | 34 | 31 | 28 | 25 | |||||||||||||||
Total Ameriprise Financial long-term debt excluding fair value of hedges, unamortized discount, debt issuance costs and capital lease obligations | $ | 2,850 | $ | 2,850 | $ | 2,850 | $ | 2,850 | $ | 2,850 | ||||||||||
Equity Summary | ||||||||||||||||||||
Total equity | $ | 5,995 | $ | 5,840 | $ | 5,632 | $ | 5,618 | $ | 5,588 | ||||||||||
Less equity of consolidated investment entities | — | — | 1 | (1 | ) | 1 | ||||||||||||||
Total equity excluding CIEs | $ | 5,995 | $ | 5,840 | $ | 5,631 | $ | 5,619 | $ | 5,587 | ||||||||||
Capital Summary | ||||||||||||||||||||
Total Ameriprise Financial long-term debt | $ | 2,891 | $ | 2,881 | $ | 2,875 | $ | 2,870 | $ | 2,867 | ||||||||||
Total equity | 5,995 | 5,840 | 5,632 | 5,618 | 5,588 | |||||||||||||||
Total Ameriprise Financial capital | 8,886 | 8,721 | 8,507 | 8,488 | 8,455 | |||||||||||||||
Less equity of consolidated investment entities | — | — | 1 | (1 | ) | 1 | ||||||||||||||
Less fair value of hedges, unamortized discount and debt issuance costs | 3 | (3 | ) | (6 | ) | (8 | ) | (8 | ) | |||||||||||
Less capital lease obligations | 38 | 34 | 31 | 28 | 25 | |||||||||||||||
Total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, debt issuance costs, capital lease obligations and equity of CIEs | $ | 8,845 | $ | 8,690 | $ | 8,481 | $ | 8,469 | $ | 8,437 | ||||||||||
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital | 32.5 | % | 33.0 | % | 33.8 | % | 33.8 | % | 33.9 | % | ||||||||||
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, debt issuance costs, capital lease obligations and equity of CIEs | 32.2 | % | 32.8 | % | 33.6 | % | 33.7 | % | 33.8 | % | ||||||||||
Total equity | $ | 5,995 | $ | 5,840 | $ | 5,632 | $ | 5,618 | $ | 5,588 | ||||||||||
AOCI | 229 | (5 | ) | (179 | ) | (244 | ) | (291 | ) | |||||||||||
Retained earnings attributable to CIEs | 1 | 1 | 1 | 1 | 1 | |||||||||||||||
AOCI attributable to CIEs | (1 | ) | (1 | ) | — | (2 | ) | — | ||||||||||||
Total equity | $ | 5,995 | $ | 5,840 | $ | 5,632 | $ | 5,618 | $ | 5,588 | ||||||||||
Less AOCI | 229 | (5 | ) | (179 | ) | (244 | ) | (291 | ) | |||||||||||
Total equity excluding AOCI | $ | 5,766 | $ | 5,845 | $ | 5,811 | $ | 5,862 | $ | 5,879 | ||||||||||
Total equity | $ | 5,995 | $ | 5,840 | $ | 5,632 | $ | 5,618 | $ | 5,588 | ||||||||||
Less retained earnings attributable to CIEs | 1 | 1 | 1 | 1 | 1 | |||||||||||||||
Less AOCI | 229 | (5 | ) | (179 | ) | (244 | ) | (291 | ) | |||||||||||
Total equity excluding CIEs and AOCI | $ | 5,765 | $ | 5,844 | $ | 5,810 | $ | 5,861 | $ | 5,878 |
(in millions, unaudited) | Advice & Wealth Management | Asset Management | Annuities | Protection | Corporate & Other | Total Segments | Non Adjusted Operating Revenue | Total | ||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Management and financial advice fees: | ||||||||||||||||||||||||||||||||
Asset management fees: | ||||||||||||||||||||||||||||||||
Retail | $ | — | $ | 443 | $ | — | $ | — | $ | — | $ | 443 | $ | — | $ | 443 | ||||||||||||||||
Institutional | — | 108 | — | — | — | 108 | — | 108 | ||||||||||||||||||||||||
Advisory fees | 728 | — | — | — | — | 728 | — | 728 | ||||||||||||||||||||||||
Financial planning fees | 95 | — | — | — | — | 95 | — | 95 | ||||||||||||||||||||||||
Transaction and other fees | 87 | 46 | 13 | 2 | — | 148 | — | 148 | ||||||||||||||||||||||||
Total management and financial advice fees | 910 | 597 | 13 | 2 | — | 1,522 | — | 1,522 | ||||||||||||||||||||||||
Distribution Fees: | ||||||||||||||||||||||||||||||||
Mutual funds | 173 | 59 | — | — | — | 232 | — | 232 | ||||||||||||||||||||||||
Insurance and annuity | 217 | 42 | 79 | 8 | — | 346 | — | 346 | ||||||||||||||||||||||||
Other products | 174 | — | — | — | — | 174 | — | 174 | ||||||||||||||||||||||||
Total distribution fees | 564 | 101 | 79 | 8 | — | 752 | — | 752 | ||||||||||||||||||||||||
Other revenues | 40 | 1 | — | 1 | — | 42 | — | 42 | ||||||||||||||||||||||||
Total revenue from contracts with customers | 1,514 | 699 | 92 | 11 | — | 2,316 | — | 2,316 | ||||||||||||||||||||||||
Revenue from other sources | 96 | 7 | 521 | 532 | 68 | 1,224 | 16 | 1,240 | ||||||||||||||||||||||||
Total segment gross revenues | 1,610 | 706 | 613 | 543 | 68 | 3,540 | 16 | 3,556 | ||||||||||||||||||||||||
Banking and deposit interest expense | 29 | — | — | — | 2 | 31 | — | 31 | ||||||||||||||||||||||||
Total segment net revenues | 1,581 | 706 | 613 | 543 | 66 | 3,509 | 16 | 3,525 | ||||||||||||||||||||||||
Less: intersegment revenues | 230 | 13 | 85 | 15 | (2 | ) | 341 | 5 | 346 | |||||||||||||||||||||||
Total net revenues | $ | 1,351 | $ | 693 | $ | 528 | $ | 528 | $ | 68 | $ | 3,168 | $ | 11 | $ | 3,179 |
(in millions, unaudited) | Advice & Wealth Management | Asset Management | Annuities | Protection | Corporate & Other | Total Segments | Non Adjusted Operating Revenue | Total | ||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Management and financial advice fees: | ||||||||||||||||||||||||||||||||
Asset management fees: | ||||||||||||||||||||||||||||||||
Retail | $ | — | $ | 479 | $ | — | $ | — | $ | — | $ | 479 | $ | — | $ | 479 | ||||||||||||||||
Institutional | — | 125 | — | — | — | 125 | — | 125 | ||||||||||||||||||||||||
Advisory fees | 740 | — | — | — | — | 740 | — | 740 | ||||||||||||||||||||||||
Financial planning fees | 75 | — | — | — | — | 75 | — | 75 | ||||||||||||||||||||||||
Transaction and other fees | 87 | 48 | 15 | 2 | — | 152 | — | 152 | ||||||||||||||||||||||||
Total management and financial advice fees | 902 | 652 | 15 | 2 | — | 1,571 | — | 1,571 | ||||||||||||||||||||||||
Distribution Fees: | ||||||||||||||||||||||||||||||||
Mutual funds | 182 | 64 | — | — | — | 246 | — | 246 | ||||||||||||||||||||||||
Insurance and annuity | 220 | 44 | 85 | 9 | — | 358 | — | 358 | ||||||||||||||||||||||||
Other products | 156 | — | — | — | — | 156 | — | 156 | ||||||||||||||||||||||||
Total distribution fees | 558 | 108 | 85 | 9 | — | 760 | — | 760 | ||||||||||||||||||||||||
Other revenues | 43 | — | — | — | — | 43 | — | 43 | ||||||||||||||||||||||||
Total revenue from contracts with customers | 1,503 | 760 | 100 | 11 | — | 2,374 | — | 2,374 | ||||||||||||||||||||||||
Revenue from other sources | 85 | 12 | 528 | 600 | 49 | 1,274 | 26 | 1,300 | ||||||||||||||||||||||||
Total segment gross revenues | 1,588 | 772 | 628 | 611 | 49 | 3,648 | 26 | 3,674 | ||||||||||||||||||||||||
Banking and deposit interest expense | 24 | — | — | — | 2 | 26 | — | 26 | ||||||||||||||||||||||||
Total segment net revenues | 1,564 | 772 | 628 | 611 | 47 | 3,622 | 26 | 3,648 | ||||||||||||||||||||||||
Less: intersegment revenues | 235 | 13 | 91 | 17 | (2 | ) | 354 | 2 | 356 | |||||||||||||||||||||||
Total net revenues | $ | 1,329 | $ | 759 | $ | 537 | $ | 594 | $ | 49 | $ | 3,268 | $ | 24 | $ | 3,292 |
(in millions, unaudited) | Advice & Wealth Management | Asset Management | Annuities | Protection | Corporate & Other | Total Segments | Non Adjusted Operating Revenue | Total | ||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Management and financial advice fees: | ||||||||||||||||||||||||||||||||
Asset management fees: | ||||||||||||||||||||||||||||||||
Retail | $ | — | $ | 472 | $ | — | $ | — | $ | — | $ | 472 | $ | — | $ | 472 | ||||||||||||||||
Institutional | — | 109 | — | — | — | 109 | — | 109 | ||||||||||||||||||||||||
Advisory fees | 706 | — | — | — | — | 706 | — | 706 | ||||||||||||||||||||||||
Financial planning fees | 80 | — | — | — | — | 80 | — | 80 | ||||||||||||||||||||||||
Transaction and other fees | 92 | 48 | 15 | 2 | — | 157 | — | 157 | ||||||||||||||||||||||||
Total management and financial advice fees | 878 | 629 | 15 | 2 | — | 1,524 | — | 1,524 | ||||||||||||||||||||||||
Distribution Fees: | ||||||||||||||||||||||||||||||||
Mutual funds | 184 | 68 | — | — | — | 252 | — | 252 | ||||||||||||||||||||||||
Insurance and annuity | 231 | 42 | 84 | 10 | — | 367 | — | 367 | ||||||||||||||||||||||||
Other products | 147 | — | — | — | — | 147 | — | 147 | ||||||||||||||||||||||||
Total distribution fees | 562 | 110 | 84 | 10 | — | 766 | — | 766 | ||||||||||||||||||||||||
Other revenues | 47 | 1 | — | — | — | 48 | — | 48 | ||||||||||||||||||||||||
Total revenue from contracts with customers | 1,487 | 740 | 99 | 12 | — | 2,338 | — | 2,338 | ||||||||||||||||||||||||
Revenue from other sources | 76 | 15 | 523 | 521 | 57 | 1,192 | 55 | 1,247 | ||||||||||||||||||||||||
Total segment gross revenues | 1,563 | 755 | 622 | 533 | 57 | 3,530 | 55 | 3,585 | ||||||||||||||||||||||||
Banking and deposit interest expense | 20 | — | — | — | 1 | 21 | — | 21 | ||||||||||||||||||||||||
Total segment net revenues | 1,543 | 755 | 622 | 533 | 56 | 3,509 | 55 | 3,564 | ||||||||||||||||||||||||
Less: intersegment revenues | 247 | 12 | 90 | 13 | — | 362 | 6 | 368 | ||||||||||||||||||||||||
Total net revenues | $ | 1,296 | $ | 743 | $ | 532 | $ | 520 | $ | 56 | $ | 3,147 | $ | 49 | $ | 3,196 |
(in millions, unaudited) | Advice & Wealth Management | Asset Management | Annuities | Protection | Corporate & Other | Total Segments | Non Adjusted Operating Revenue | Total | ||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Management and financial advice fees: | ||||||||||||||||||||||||||||||||
Asset management fees: | ||||||||||||||||||||||||||||||||
Retail | $ | — | $ | 480 | $ | — | $ | — | $ | — | $ | 480 | $ | — | $ | 480 | ||||||||||||||||
Institutional | — | 111 | — | — | — | 111 | — | 111 | ||||||||||||||||||||||||
Advisory fees | 691 | — | — | — | — | 691 | — | 691 | ||||||||||||||||||||||||
Financial planning fees | 68 | — | — | — | — | 68 | — | 68 | ||||||||||||||||||||||||
Transaction and other fees | 89 | 48 | 14 | 2 | — | 153 | — | 153 | ||||||||||||||||||||||||
Total management and financial advice fees | 848 | 639 | 14 | 2 | — | 1,503 | — | 1,503 | ||||||||||||||||||||||||
Distribution Fees: | ||||||||||||||||||||||||||||||||
Mutual funds | 190 | 69 | — | — | — | 259 | — | 259 | ||||||||||||||||||||||||
Insurance and annuity | 222 | 45 | 84 | 8 | — | 359 | — | 359 | ||||||||||||||||||||||||
Other products | 145 | — | — | — | — | 145 | — | 145 | ||||||||||||||||||||||||
Total distribution fees | 557 | 114 | 84 | 8 | — | 763 | — | 763 | ||||||||||||||||||||||||
Other revenues | 41 | 1 | — | — | — | 42 | — | 42 | ||||||||||||||||||||||||
Total revenue from contracts with customers | 1,446 | 754 | 98 | 10 | — | 2,308 | — | 2,308 | ||||||||||||||||||||||||
Revenue from other sources | 71 | 24 | 515 | 509 | 58 | 1,177 | 61 | 1,238 | ||||||||||||||||||||||||
Total segment gross revenues | 1,517 | 778 | 613 | 519 | 58 | 3,485 | 61 | 3,546 | ||||||||||||||||||||||||
Banking and deposit interest expense | 16 | — | — | — | 1 | 17 | — | 17 | ||||||||||||||||||||||||
Total segment net revenues | 1,501 | 778 | 613 | 519 | 57 | 3,468 | 61 | 3,529 | ||||||||||||||||||||||||
Less: intersegment revenues | 240 | 12 | 90 | 16 | (1 | ) | 357 | 4 | 361 | |||||||||||||||||||||||
Total net revenues | $ | 1,261 | $ | 766 | $ | 523 | $ | 503 | $ | 58 | $ | 3,111 | $ | 57 | $ | 3,168 |
(in millions, unaudited) | Advice & Wealth Management | Asset Management | Annuities | Protection | Corporate & Other | Total Segments | Non Adjusted Operating Revenue | Total | ||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Management and financial advice fees: | ||||||||||||||||||||||||||||||||
Asset management fees: | ||||||||||||||||||||||||||||||||
Retail | $ | — | $ | 484 | $ | — | $ | — | $ | — | $ | 484 | $ | — | $ | 484 | ||||||||||||||||
Institutional | — | 148 | — | — | — | 148 | — | 148 | ||||||||||||||||||||||||
Advisory fees | 677 | — | — | — | — | 677 | — | 677 | ||||||||||||||||||||||||
Financial planning fees | 87 | — | — | — | — | 87 | — | 87 | ||||||||||||||||||||||||
Transaction and other fees | 91 | 47 | 15 | 2 | — | 155 | — | 155 | ||||||||||||||||||||||||
Total management and financial advice fees | 855 | 679 | 15 | 2 | — | 1,551 | — | 1,551 | ||||||||||||||||||||||||
Distribution Fees: | ||||||||||||||||||||||||||||||||
Mutual funds | 193 | 70 | — | — | — | 263 | — | 263 | ||||||||||||||||||||||||
Insurance and annuity | 234 | 44 | 85 | 8 | — | 371 | — | 371 | ||||||||||||||||||||||||
Other products | 127 | — | — | — | — | 127 | — | 127 | ||||||||||||||||||||||||
Total distribution fees | 554 | 114 | 85 | 8 | — | 761 | — | 761 | ||||||||||||||||||||||||
Other revenues | 45 | 1 | — | — | — | 46 | — | 46 | ||||||||||||||||||||||||
Total revenue from contracts with customers | 1,454 | 794 | 100 | 10 | — | 2,358 | — | 2,358 | ||||||||||||||||||||||||
Revenue from other sources | 69 | 22 | 538 | 518 | 12 | 1,159 | 52 | 1,211 | ||||||||||||||||||||||||
Total segment gross revenues | 1,523 | 816 | 638 | 528 | 12 | 3,517 | 52 | 3,569 | ||||||||||||||||||||||||
Banking and deposit interest expense | 14 | — | — | — | 1 | 15 | — | 15 | ||||||||||||||||||||||||
Total segment net revenues | 1,509 | 816 | 638 | 528 | 11 | 3,502 | 52 | 3,554 | ||||||||||||||||||||||||
Less: intersegment revenues | 252 | 12 | 92 | 16 | (1 | ) | 371 | 3 | 374 | |||||||||||||||||||||||
Total net revenues | $ | 1,257 | $ | 804 | $ | 546 | $ | 512 | $ | 12 | $ | 3,131 | $ | 49 | $ | 3,180 |
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