EX-99.2 3 a10-8719_1ex99d2.htm EX-99.2

Exhibit 99.2

 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2010

 

1



 

Ameriprise Financial, Inc.

Statistical Supplement Information

Table of Contents

 

 

 

Page

Ameriprise Financial, Inc.

 

 

Statistical Supplement Presentation

 

4

Consolidated GAAP Income Statements

 

6

Consolidated Investment Entities Income Statements

 

7

Consolidated GAAP Income Statements Excluding Consolidated Investment Entities

 

8

Highlights

 

10

Common Share, Per Share and Capital Summary

 

11

Segment Summary

 

12

Advice & Wealth Management Segment

 

 

Segment Income Statements

 

15

Segment Metrics

 

16

Asset Management Segment

 

 

Segment Income Statements

 

18

Segment Metrics

 

19

Domestic Asset Management Products

 

20

International Asset Management Products

 

21

Mutual Fund Performance

 

22

Annuities Segment

 

 

Segment Income Statements

 

24

Segment Metrics

 

25

Protection Segment

 

 

Segment Income Statements

 

27

Segment Metrics

 

28

Corporate & Other Segment

 

 

Segment Income Statements

 

30

Impact of Consolidated Investment Entities

 

31

Segment Income Statements Excluding Consolidated Investment Entities

 

32

Eliminations

 

 

Income Statements

 

33

Balance Sheet and Ratings Information

 

 

Consolidated Balance Sheets

 

35

Capital and Ratings Information

 

36

Investments

 

37

Non-GAAP Financial Information

 

38

Glossary of Selected Terminology

 

 

Glossary of Selected Terminology - Segments

 

39

Glossary of Selected Terminology

 

40

Exhibit A

 

 

Disclosed Items

 

42

Exhibit B

 

 

GAAP Excluding Consolidated Investment Entities Reconciliation Tables

 

45

 

2



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2010

 

 

Consolidated Results

 

3



 

Ameriprise Financial, Inc.

Statistical Supplement Presentation

First Quarter 2010

 

Ameriprise Financial, Inc. (“Ameriprise Financial” or “the Company”) has revised the presentation in this statistical supplement to improve the transparency of its business results. In June 2009, the Financial Accounting Standards Board updated the accounting standards related to the required consolidation of certain variable interest entities (“VIEs”). The Company adopted the accounting standard effective January 1, 2010 and recorded a cumulative change in accounting principle resulting in an increase to appropriated retained earnings of consolidated investment entities of $473 million and consolidation of approximately $5.5 billion of client assets and $5.1 billion of liabilities in VIEs onto its balance sheet that were not previously consolidated. Management views the VIE assets as client assets and the liabilities have recourse only to those assets. While the economics of this business have not changed, both the Ameriprise Financial income statement and balance sheet were impacted.  Prior to adoption, the Company consolidated certain property funds and hedge funds (formerly Consolidated Managed Funds). These entities and the VIEs consolidated as of January 1, 2010, are defined as Consolidated Investment Entities (“CIEs”).  The net income of the CIEs will be reflected in net income attributable to noncontrolling interests.

 

Management believes it is important to present the consolidated income statements excluding the CIEs to improve transparency into the underlying performance and economics of the Company’s ongoing operations. The CIEs we manage have the following characteristics:

 

·             They were formed on behalf of institutional investors to obtain a diversified investment portfolio and were not formed in order to obtain financing for Ameriprise Financial.

·             Ameriprise Financial receives customary, industry standard management fees for the services it provides to these CIEs and has a fiduciary responsibility to maximize the investors’ returns.

·             Ameriprise Financial does not have any obligation to provide financial support to the CIEs, does not provide any performance guarantees of the CIEs and has no obligation to absorb the investors’ losses.

·             Management excludes the impact of consolidating the CIEs on assets, liabilities, pretax income and equity for setting the Company’s financial performance targets and annual incentive award compensation targets.

 

The table below presents selected balances and metrics for the three months ended March 31, 2010 that identify the impacts from the consolidation of the CIEs.

 

 

 

 

 

 

 

Net Income

 

 

 

 

 

 

 

Net

 

Pretax

 

Attributable to

 

Earnings per

 

Return on Equity

 

(in millions unless otherwise noted, unaudited)

 

Revenues

 

Income

 

Ameriprise Financial

 

Diluted Share

 

Excluding AOCI (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

As Reported on a GAAP Basis

 

$

2,271

 

$

361

 

$

214

 

$

0.81

 

9.3

%

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Basis Excluding CIEs (1)

 

$

2,144

 

$

279

 

$

214

 

$

0.81

 

9.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Impact of the CIEs

 

$

127

 

$

82

 

$

 

$

 

(0.4

)%

 

Page 6 of the statistical supplement presents the consolidated GAAP income statements, equity and related metrics, page 7 presents the CIEs’ impact to the income statements, equity and related metrics and page 8 presents the consolidated GAAP income statements and equity excluding CIEs and related metrics.

 


(1)             See non-GAAP financial information on pages 38, and 45 - 49.

(2)             Return on equity is calculated using the trailing twelve months income in the numerator and shareholders’ equity less accumulated other comprehensive income, calculated using a five point average of quarter-end equity in the denominator.

 

4



 

Ameriprise Financial, Inc.

Statistical Supplement Presentation

First Quarter 2010

 

On a GAAP basis, the consolidated income statement reflects the impact of the required consolidation of certain VIEs.  This impact is recorded in the Corporate & Other segment, along with the income statement impacts of certain property funds and hedge funds.  Prior to adoption of the new accounting standard, the income statement impacts from the certain property funds and hedge funds were reflected in the Asset Management segment.  Upon adoption of the new accounting standard, we reclassified this activity to the Corporate & Other segment for all periods presented.  The impacts from the new accounting standard together with the impacts from certain property funds and hedge funds are collectively referred to as the impact of the CIEs.

 

On a GAAP consolidated basis, management fees the Company earns for the services it provides to the CIEs and related general and administrative expenses are eliminated and the changes in the assets and liabilities related to the CIEs, primarily debt and underlying bank loans, are reflected in net investment income.  In the consolidated income statements excluding the CIEs and in the Asset Management segment, the Company continues to show the fees in the management and financial advice fees line and eliminates the impact of changes in the CIEs’ assets and liabilities.

 

Management believes the exclusion of the impacts from consolidation of the CIEs, integration charges and realized gains/(losses) improves transparency into the underlying performance of the business.  Throughout this presentation, these measures are referred to as operating measures.

 

 

 

Three Months ended March 31, 2010

 

 

 

Advice & Wealth

 

Asset

 

 

 

 

 

Corporate

 

 

 

(in millions unless otherwise noted, unaudited)

 

Management

 

Management

 

Annuities

 

Protection

 

& Other

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP pretax income

 

$

51

 

$

18

 

$

120

 

$

119

 

$

53

 

$

361

 

Impact of the CIEs

 

 

 

 

 

82

 

82

 

GAAP pretax income (loss) excluding CIEs (1)

 

51

 

18

 

120

 

119

 

(29

)

279

 

Integration charges

 

2

 

5

 

 

 

 

7

 

Realized (gains) losses

 

1

 

(1

)

(3

)

(1

)

(1

)

(5

)

Operating pretax income (loss) (1)

 

$

54

 

$

22

 

$

117

 

$

118

 

$

(30

)

281

 

Income tax provision (2)

 

 

 

 

 

 

 

 

 

 

 

66

 

Operating earnings (1)

 

 

 

 

 

 

 

 

 

 

 

$

215

 

 


(1)             See non-GAAP financial information on pages 38, and 45 - 49.

(2)             Actual income tax provision plus the tax effect of the integration charges and realized gains (losses) calculated at the statutory tax rate of 35%

 

5



 

Ameriprise Financial, Inc.

Consolidated GAAP Income Statements

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

554

 

$

606

 

$

689

 

$

855

 

$

774

 

$

554

 

$

774

 

$

220

 

40

%

$

220

 

40

%

$

(81

)

(9

)%

Distribution fees

 

311

 

351

 

367

 

391

 

391

 

311

 

391

 

80

 

26

%

80

 

26

%

 

 

Net investment income

 

418

 

511

 

538

 

535

 

590

 

418

 

590

 

172

 

41

%

172

 

41

%

55

 

10

%

Premiums

 

266

 

269

 

276

 

287

 

282

 

266

 

282

 

16

 

6

%

16

 

6

%

(5

)

(2

)%

Other revenues

 

209

 

175

 

109

 

229

 

255

 

209

 

255

 

46

 

22

%

46

 

22

%

26

 

11

%

Total revenues

 

1,758

 

1,912

 

1,979

 

2,297

 

2,292

 

1,758

 

2,292

 

534

 

30

%

534

 

30

%

(5

)

 

Banking and deposit interest expense

 

42

 

38

 

33

 

28

 

21

 

42

 

21

 

(21

)

(50

)%

(21

)

(50

)%

(7

)

(25

)%

Total net revenues

 

1,716

 

1,874

 

1,946

 

2,269

 

2,271

 

1,716

 

2,271

 

555

 

32

%

555

 

32

%

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

384

 

432

 

462

 

504

 

525

 

384

 

525

 

141

 

37

%

141

 

37

%

21

 

4

%

Interest credited to fixed accounts

 

205

 

237

 

232

 

229

 

228

 

205

 

228

 

23

 

11

%

23

 

11

%

(1

)

 

Benefits, claims, losses and settlement expenses

 

100

 

587

 

306

 

349

 

354

 

100

 

354

 

254

 

 

#

254

 

 

#

5

 

1

%

Amortization of deferred acquisition costs

 

286

 

(125

)

(64

)

120

 

118

 

286

 

118

 

(168

)

(59

)%

(168

)

(59

)%

(2

)

(2

)%

Interest and debt expense

 

26

 

28

 

45

 

28

 

64

 

26

 

64

 

38

 

 

#

38

 

 

#

36

 

 

#

General and administrative expense

 

581

 

600

 

625

 

708

 

621

 

581

 

621

 

40

 

7

%

40

 

7

%

(87

)

(12

)%

Total expenses

 

1,582

 

1,759

 

1,606

 

1,938

 

1,910

 

1,582

 

1,910

 

328

 

21

%

328

 

21

%

(28

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

134

 

115

 

340

 

331

 

361

 

134

 

361

 

227

 

 

#

227

 

 

#

30

 

9

%

Income tax provision

 

18

 

28

 

80

 

57

 

65

 

18

 

65

 

47

 

 

#

47

 

 

#

8

 

14

%

Net income

 

116

 

87

 

260

 

274

 

296

 

116

 

296

 

180

 

 

#

180

 

 

#

22

 

8

%

Less: Net income (loss) attributable to noncontrolling interests

 

(14

)

(8

)

 

37

 

82

 

(14

)

82

 

96

 

 

#

96

 

 

#

45

 

 

#

Net income attributable to Ameriprise Financial

 

$

130

 

$

95

 

$

260

 

$

237

 

$

214

 

$

130

 

$

214

 

$

84

 

65

%

$

84

 

65

%

$

(23

)

(10

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.58

 

$

0.41

 

$

1.00

 

$

0.92

 

$

0.82

 

$

0.58

 

$

0.82

 

$

0.24

 

41

%

$

0.24

 

41

%

$

(0.10

)

(11

)%

Earnings per diluted share

 

$

0.58

 

$

0.41

 

$

1.00

 

$

0.90

 

$

0.81

 

$

0.58

 

$

0.81

 

$

0.23

 

40

%

$

0.23

 

40

%

$

(0.09

)

(10

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue growth

 

(13.8

)%

(4.6

)%

19.7

%

70.0

%

32.3

%

(13.8

)%

32.3

%

46.1

%

 

 

46.1

%

 

 

(37.7

)%

 

 

Return on equity excluding AOCI (1)

 

(1.3

)%

(2.8

)%

1.5

%

8.8

%

9.3

%

(1.3

)%

9.3

%

10.6

%

 

 

10.6

%

 

 

0.5

%

 

 

Earnings per diluted share growth

 

(29.3

)%

(55.9

)%

NM

 

NM

 

39.7

%

(29.3

)%

39.7

%

68.9

%

 

 

68.9

%

 

 

NM

 

 

 

Pretax income margin

 

7.8

%

6.1

%

17.5

%

14.6

%

15.9

%

7.8

%

15.9

%

8.1

%

 

 

8.1

%

 

 

1.3

%

 

 

Net income attributable to Ameriprise Financial margin

 

7.6

%

5.1

%

13.4

%

10.4

%

9.4

%

7.6

%

9.4

%

1.8

%

 

 

1.8

%

 

 

(1.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

13.4

%

24.3

%

23.5

%

17.2

%

17.9

%

13.4

%

17.9

%

4.5

%

 

 

4.5

%

 

 

0.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial’s shareholders’ equity

 

$

6,384

 

$

8,110

 

$

9,049

 

$

9,273

 

$

10,108

 

$

6,384

 

$

10,108

 

$

3,724

 

58

%

$

3,724

 

58

%

$

835

 

9

%

Ameriprise Financial’s shareholders’ equity excluding AOCI (1)

 

$

7,518

 

$

8,498

 

$

8,772

 

$

9,010

 

$

9,743

 

$

7,518

 

$

9,743

 

$

2,225

 

30

%

$

2,225

 

30

%

$

733

 

8

%

Ameriprise Financial’s shareholders’ equity excluding AOCI / outstanding shares (1)

 

$

33.61

 

$

32.79

 

$

33.89

 

$

34.80

 

$

37.13

 

$

33.61

 

$

37.13

 

$

3.52

 

10

%

$

3.52

 

10

%

$

2.33

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial’s shareholders’ equity excluding AOCI - 5 point avg.

 

$

7,637

 

$

7,763

 

$

7,950

 

$

8,214

 

$

8,708

 

$

7,637

 

$

8,708

 

$

1,071

 

14

%

$

1,071

 

14

%

$

494

 

6

%

 


(1)  See non-GAAP financial information on pages 38, and 45 - 49.

 

# Variance of 100% or greater.

 

6


 


 

Ameriprise Financial, Inc.

Consolidated Investment Entities Income Statements

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

(1

)

$

 

$

(1

)

$

(9

)

$

 

$

(9

)

$

(9

)

 

$

(9

)

 

$

(8

)

 

#

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

1

 

1

 

(1

)

1

 

79

 

1

 

79

 

78

 

 

#

78

 

 

#

78

 

 

#

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

(12

)

(7

)

4

 

43

 

57

 

(12

)

57

 

69

 

 

#

69

 

 

#

14

 

33

%

Total revenues

 

(11

)

(7

)

3

 

43

 

127

 

(11

)

127

 

138

 

 

#

138

 

 

#

84

 

 

#

Banking and deposit interest expense

 

1

 

1

 

1

 

3

 

 

1

 

 

(1

)

 

#

(1

)

 

#

(3

)

 

#

Total net revenues

 

(12

)

(8

)

2

 

40

 

127

 

(12

)

127

 

139

 

 

#

139

 

 

#

87

 

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

40

 

 

40

 

40

 

 

40

 

 

40

 

 

General and administrative expense

 

2

 

 

2

 

3

 

5

 

2

 

5

 

3

 

 

#

3

 

 

#

2

 

67

%

Total expenses

 

2

 

 

2

 

3

 

45

 

2

 

45

 

43

 

 

#

43

 

 

#

42

 

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income (loss)

 

(14

)

(8

)

 

37

 

82

 

(14

)

82

 

96

 

 

#

96

 

 

#

45

 

 

#

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

(14

)

(8

)

 

37

 

82

 

(14

)

82

 

96

 

 

 

96

 

 

 

45

 

 

 

Less: Net income (loss) attributable to noncontrolling interests

 

(14

)

(8

)

 

37

 

82

 

(14

)

82

 

96

 

 

#

96

 

 

#

45

 

 

#

Net income (loss) attributable to CIEs

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) Per Share - Consolidated Investment Entities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

Earnings (loss) per diluted share

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Investment Entities Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue growth

 

(0.5

)%

(0.2

)%

1.2

%

6.6

%

8.2

%

(0.5

)%

8.2

%

8.7

%

 

 

8.7

%

 

 

1.6

%

 

 

Return on equity excluding AOCI (1)

 

(6.6

)%

(6.5

)%

(3.8

)%

(0.4

)%

(0.4

)%

(6.6

)%

(0.4

)%

6.2

%

 

 

6.2

%

 

 

(0.0

)%

 

 

Earnings per diluted share growth

 

 

 

NM

 

NM

 

 

 

 

 

 

 

 

 

 

NM

 

 

 

Pretax income (loss) margin

 

(0.8

)%

(0.4

)%

 

1.4

%

2.9

%

(0.8

)%

2.9

%

3.7

%

 

 

3.7

%

 

 

1.5

%

 

 

Net income (loss) attributable to CIEs margin

 

0.1

%

0.1

%

 

(0.2

)%

(0.6

)%

0.1

%

(0.6

)%

(0.7

)%

 

 

(0.7

)%

 

 

(0.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

$

 

$

 

$

 

$

 

$

482

 

$

 

$

482

 

$

482

 

 

$

482

 

 

$

482

 

 

Shareholders’ equity excluding AOCI

 

$

 

$

 

$

 

$

 

$

508

 

$

 

$

508

 

$

508

 

 

$

508

 

 

$

508

 

 

Shareholders’ equity excluding AOCI / outstanding shares

 

$

 

$

 

$

 

$

 

$

1.94

 

$

 

$

1.94

 

$

1.94

 

 

$

1.94

 

 

$

1.94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity excluding AOCI - 5 point avg.

 

$

 

$

 

$

 

$

 

$

101

 

$

 

$

101

 

$

101

 

 

$

101

 

 

$

101

 

 

 


(1)  See non-GAAP financial information on pages 38, and 45 - 49.

 

# Variance of 100% or greater.

 

7


 


 

Ameriprise Financial, Inc.

Consolidated GAAP Income Statements Excluding Consolidated Investment Entities

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

554

 

$

607

 

$

689

 

$

856

 

$

783

 

$

554

 

$

783

 

$

229

 

41

%

$

229

 

41

%

$

(73

)

(9

)%

Distribution fees

 

311

 

351

 

367

 

391

 

391

 

311

 

391

 

80

 

26

%

80

 

26

%

 

0

%

Net investment income

 

417

 

510

 

539

 

534

 

511

 

417

 

511

 

94

 

23

%

94

 

23

%

(23

)

(4

)%

Premiums

 

266

 

269

 

276

 

287

 

282

 

266

 

282

 

16

 

6

%

16

 

6

%

(5

)

(2

)%

Other revenues

 

221

 

182

 

105

 

186

 

198

 

221

 

198

 

(23

)

(10

)%

(23

)

(10

)%

12

 

6

%

Total revenues

 

1,769

 

1,919

 

1,976

 

2,254

 

2,165

 

1,769

 

2,165

 

396

 

22

%

396

 

22

%

(89

)

(4

)%

Banking and deposit interest expense

 

41

 

37

 

32

 

25

 

21

 

41

 

21

 

(20

)

(49

)%

(20

)

(49

)%

(4

)

(16

)%

Total net revenues

 

1,728

 

1,882

 

1,944

 

2,229

 

2,144

 

1,728

 

2,144

 

416

 

24

%

416

 

24

%

(85

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

384

 

432

 

462

 

504

 

525

 

384

 

525

 

141

 

37

%

141

 

37

%

21

 

4

%

Interest credited to fixed accounts

 

205

 

237

 

232

 

229

 

228

 

205

 

228

 

23

 

11

%

23

 

11

%

(1

)

0

%

Benefits, claims, losses and settlement expenses

 

100

 

587

 

306

 

349

 

354

 

100

 

354

 

254

 

 

#

254

 

 

#

5

 

1

%

Amortization of deferred acquisition costs

 

286

 

(125

)

(64

)

120

 

118

 

286

 

118

 

(168

)

(59

)%

(168

)

(59

)%

(2

)

(2

)%

Interest and debt expense

 

26

 

28

 

45

 

28

 

24

 

26

 

24

 

(2

)

(8

)%

(2

)

(8

)%

(4

)

(14

)%

General and administrative expense

 

579

 

600

 

623

 

705

 

616

 

579

 

616

 

37

 

6

%

37

 

6

%

(89

)

(13

)%

Total expenses

 

1,580

 

1,759

 

1,604

 

1,935

 

1,865

 

1,580

 

1,865

 

285

 

18

%

285

 

18

%

(70

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

148

 

123

 

340

 

294

 

279

 

148

 

279

 

131

 

89

%

131

 

89

%

(15

)

(5

)%

Income tax provision

 

18

 

28

 

80

 

57

 

65

 

18

 

65

 

47

 

 

#

47

 

 

#

8

 

14

%

Net income

 

130

 

95

 

260

 

237

 

214

 

130

 

214

 

84

 

65

%

84

 

65

%

(23

)

(10

)%

Less: Net income (loss) attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Ameriprise Financial

 

130

 

95

 

260

 

237

 

214

 

130

 

214

 

84

 

65

%

84

 

65

%

(23

)

(10

)%

Integration charges net of tax (2)

 

12

 

16

 

21

 

15

 

4

 

12

 

4

 

(8

)

(67

)%

(8

)

(67

)%

(11

)

(73

)%

Realized (gains) losses net of tax (2)

 

(9

)

(4

)

(9

)

(12

)

(3

)

(9

)

(3

)

6

 

67

%

6

 

67

%

9

 

75

%

Operating earnings

 

$

133

 

$

107

 

$

272

 

$

240

 

$

215

 

$

133

 

$

215

 

$

82

 

62

%

$

82

 

62

%

$

(25

)

(10

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

$

1,728

 

$

1,882

 

$

1,944

 

$

2,229

 

$

2,144

 

$

1,728

 

$

2,144

 

$

416

 

24

%

$

416

 

24

%

$

(85

)

(4

)%

Realized (gains) losses

 

15

 

(6

)

(14

)

(18

)

(5

)

(15

)

(5

)

10

 

67

%

10

 

67

%

13

 

72

%

Total operating revenues

 

1,713

 

1,876

 

1,930

 

2,211

 

2,139

 

1,713

 

2,139

 

426

 

25

%

426

 

25

%

(72

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Operating Income Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Income

 

$

148

 

$

123

 

$

340

 

$

294

 

$

279

 

$

148

 

$

279

 

$

131

 

89

%

$

131

 

89

%

$

(15

)

(5

)%

Integration charges

 

19

 

25

 

32

 

22

 

7

 

19

 

7

 

(12

)

(63

)%

(12

)

(63

)%

(15

)

(68

)%

Realized (gains) losses

 

(15

)

(6

)

(14

)

(18

)

(5

)

(15

)

(5

)

10

 

67

%

10

 

67

%

13

 

72

%

Pretax Operating Income

 

152

 

142

 

358

 

298

 

281

 

152

 

281

 

129

 

85

%

129

 

85

%

(17

)

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

12.2

%

22.8

%

23.5

%

19.4

%

23.2

%

12.2

%

23.2

%

11.0

%

 

 

11.0

%

 

 

3.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic operating earnings per share (1)

 

$

0.60

 

$

0.47

 

$

1.05

 

$

0.93

 

$

0.83

 

$

0.60

 

$

0.83

 

$

0.23

 

38

%

$

0.23

 

38

%

$

(0.10

)

(11

)%

Operating earnings per diluted share (1)

 

$

0.60

 

$

0.47

 

$

1.04

 

$

0.91

 

$

0.81

 

$

0.60

 

$

0.81

 

$

0.21

 

35

%

$

0.21

 

35

%

$

(0.10

)

(11

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue growth: Target 6 - 8% (1)

 

(15.1

)%

(6.0

)%

(1.4

)%

24.7

%

24.9

%

(15.1

)%

24.9

%

40.0

%

 

 

40.0

%

 

 

0.2

%

 

 

Operating return on equity excluding AOCI: Target 12 - 15% (1)

 

5.3

%

3.7

%

5.3

%

9.2

%

9.7

%

5.3

%

9.7

%

4.4

%

 

 

4.4

%

 

 

0.5

%

 

 

Operating earnings per diluted share growth: Target 12 -15% (1)

 

(32.6

)%

(53.5

)%

70.5

%

NM

 

35.0

%

(32.6

)%

35.0

%

67.6

%

 

 

67.6

%

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Operating Margin (1)

 

8.8

%

7.5

%

18.4

%

13.4

%

13.1

%

8.8

%

13.1

%

4.3

%

 

 

4.3

%

 

 

(0.3

)%

 

 

Operating Margin (1)

 

7.8

%

5.7

%

14.1

%

10.9

%

10.1

%

7.8

%

10.1

%

2.3

%

 

 

2.3

%

 

 

(0.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial’s shareholders’ equity

 

$

6,384

 

$

8,110

 

$

9,049

 

$

9,273

 

$

9,626

 

$

6,384

 

$

9,626

 

$

3,242

 

51

%

$

3,242

 

51

%

$

353

 

4

%

Ameriprise Financial’s shareholders’ equity excluding AOCI (1)

 

$

7,518

 

$

8,498

 

$

8,772

 

$

9,010

 

$

9,235

 

$

7,518

 

$

9,235

 

$

1,717

 

23

%

$

1,717

 

23

%

$

225

 

2

%

Ameriprise Financial’s shareholders’ equity excluding AOCI / outstanding shares (1)

 

$

33.61

 

$

32.79

 

$

33.89

 

$

34.80

 

$

35.19

 

$

33.61

 

$

35.19

 

$

1.58

 

5

%

$

1.58

 

5

%

$

0.39

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial’s shareholders’ equity excluding AOCI - 5 point ave.

 

$

7,637

 

$

7,763

 

$

7,950

 

$

8,214

 

$

8,607

 

$

7,637

 

$

8,607

 

$

970

 

13

%

$

970

 

13

%

$

393

 

5

%

 


(1)  See non-GAAP financial information on pages 38, and 45 - 49.

(2)  Calculated using the statutory tax rate of 35%.

 

# Variance of 100% or greater.

8



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2010

 

Summary & Highlights

 

9



 

Ameriprise Financial, Inc.

Highlights

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

(in millions, except earnings per share amounts,

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

headcount and as otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Operating Earnings Per Share (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.60

 

$

0.47

 

$

1.05

 

$

0.93

 

$

0.83

 

$

0.60

 

$

0.83

 

$

0.23

 

38

%

$

0.23

 

38

%

$

(0.10

)

(11

)%

Earnings per diluted share

 

$

0.60

 

$

0.47

 

$

1.04

 

$

0.91

 

$

0.81

 

$

0.60

 

$

0.81

 

$

0.21

 

35

%

$

0.21

 

35

%

$

(0.10

)

(11

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Metrics (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue growth: Target 6 - 8%

 

(15.1

)%

(6.0

)%

(1.4

)%

24.7

%

24.9

%

(15.1

)%

24.9

%

40.0

%

 

 

40.0

%

 

 

0.2

%

 

 

Operating return on equity excluding AOCI: Target 12 - 15%

 

5.3

%

3.7

%

5.3

%

9.2

%

9.7

%

5.3

%

9.7

%

4.4

%

 

 

4.4

%

 

 

.5

%

 

 

Earnings per diluted share growth: Target 12 - 15%

 

(32.6

)%

(53.5

)%

70.5

%

NM

 

35.0

%

(32.6

)%

35.0

%

67.6

%

 

 

67.6

%

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned, Managed, and Administered Assets (in billions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned

 

$

29.6

 

$

32.5

 

$

36.0

 

$

36.9

 

$

37.6

 

$

29.6

 

$

37.6

 

$

8.0

 

27

%

$

8.0

 

27

%

$

0.7

 

2

%

Managed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External clients

 

196.4

 

222.2

 

247.7

 

256.6

 

254.5

 

196.4

 

254.5

 

58.1

 

30

%

58.1

 

30

%

(2.1

)

(1

)%

Owned

 

56.5

 

62.3

 

67.1

 

68.1

 

70.4

 

56.5

 

70.4

 

13.9

 

25

%

13.9

 

25

%

2.3

 

3

%

Consolidated client assets

 

0.4

 

0.5

 

0.6

 

1.1

 

6.9

 

0.4

 

6.9

 

6.5

 

 

#

6.5

 

 

#

5.8

 

 

#

Total managed

 

253.3

 

285.0

 

315.4

 

325.8

 

331.8

 

253.3

 

331.8

 

78.5

 

31

%

78.5

 

31

%

6.0

 

2

%

Administered

 

71.1

 

79.8

 

88.5

 

95.1

 

93.9

 

71.1

 

93.9

 

22.8

 

32

%

22.8

 

32

%

(1.2

)

(1

)%

Total OMA assets

 

$

354.0

 

$

397.3

 

$

439.9

 

$

457.8

 

$

463.3

 

$

354.0

 

$

463.3

 

$

109.3

 

31

%

$

109.3

 

31

%

$

5.5

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total client assets

 

231,298

 

258,393

 

286,590

 

294,027

 

303,839

 

231,298

 

303,839

 

72,541

 

31

%

72,541

 

31

%

9,812

 

3

%

Total financial advisors

 

12,466

 

12,508

 

12,314

 

12,036

 

11,837

 

12,466

 

11,837

 

(629

)

(5

)%

(629

)

(5

)%

(199

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net flows and net deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisor wrap

 

1,302

 

2,758

 

2,724

 

2,564

 

2,512

 

1,302

 

2,512

 

1,210

 

93

%

1,210

 

93

%

(52

)

(2

)%

Asset Management

 

(147

)

45

 

2,324

 

1,385

 

(834

)

(147

)

(834

)

(687

)

 

#

(687

)

 

#

(2,219

)

 

#

Annuities

 

1,779

 

1,129

 

527

 

255

 

(68

)

1,779

 

(68

)

(1,847

)

 

#

(1,847

)

 

#

(323

)

 

#

Variable universal life / Universal life

 

(26

)

(37

)

(38

)

(34

)

(41

)

(26

)

(41

)

(15

)

(58

)%

(15

)

(58

)%

(7

)

(21

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

S&P 500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Daily average

 

811

 

894

 

994

 

1,088

 

1,121

 

811

 

1,121

 

310

 

38

%

310

 

38

%

33

 

3

%

Period end

 

798

 

919

 

1,057

 

1,115

 

1,169

 

798

 

1,169

 

371

 

46

%

371

 

46

%

54

 

5

%

 


(1) See non-GAAP financial information on pages 38, and 45 - 49.

# Variance of 100% or greater.

 

10



 

Ameriprise Financial, Inc.

Common Share, Per Share and Capital Summary

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr  Chg - 1Q

 

YTD  Chg - 1Q

 

Seq  Qtr Chg - 1Q

 

(in millions, except earnings per share amounts)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Basic Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

216.5

 

219.1

 

255.0

 

255.1

 

255.1

 

216.5

 

255.1

 

38.6

 

18

%

38.6

 

18

%

 

 

Repurchases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuances

 

3.1

 

36.0

 

0.2

 

0.1

 

2.7

 

3.1

 

2.7

 

(0.4

)

(13

)%

(0.4

)

(13

)%

2.6

 

 

#

Other

 

(0.5

)

(0.1

)

(0.1

)

(0.1

)

(0.4

)

(0.5

)

(0.4

)

0.1

 

20

%

0.1

 

20

%

(0.3

)

 

#

Total common outstanding

 

219.1

 

255.0

 

255.1

 

255.1

 

257.4

 

219.1

 

257.4

 

38.3

 

17

%

38.3

 

17

%

2.3

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total common outstanding

 

219.1

 

255.0

 

255.1

 

255.1

 

257.4

 

219.1

 

257.4

 

38.3

 

17

%

38.3

 

17

%

2.3

 

1

%

Nonforfeitable restricted stock units

 

4.6

 

4.2

 

3.7

 

3.8

 

5.0

 

4.6

 

5.0

 

0.4

 

9

%

0.4

 

9

%

1.2

 

32

%

Total basic common shares

 

223.7

 

259.2

 

258.8

 

258.9

 

262.4

 

223.7

 

262.4

 

38.7

 

17

%

38.7

 

17

%

3.5

 

1

%

Total potentially dilutive

 

0.7

 

1.4

 

2.5

 

4.8

 

4.0

 

0.7

 

4.0

 

3.3

 

 

#

3.3

 

 

#

(0.8

)

(17

)%

Total diluted shares

 

224.4

 

260.6

 

261.3

 

263.7

 

266.4

 

224.4

 

266.4

 

42.0

 

19

%

42.0

 

19

%

2.7

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

222.3

 

228.8

 

258.7

 

258.9

 

260.8

 

222.3

 

260.8

 

38.5

 

17

%

38.5

 

17

%

1.9

 

1

%

Diluted

 

223.5

 

230.0

 

260.7

 

263.3

 

265.0

 

223.5

 

265.0

 

41.5

 

19

%

41.5

 

19

%

1.7

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Book Value excluding CIEs (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial’s shareholders’ equity

 

$

6,384

 

$

8,110

 

$

9,049

 

$

9,273

 

$

9,626

 

$

6,384

 

$

9,626

 

$

3,242

 

51

%

$

3,242

 

51

%

$

353

 

4

%

Ameriprise Financial’s shareholders’ equity excluding AOCI (1)

 

$

7,518

 

$

8,498

 

$

8,772

 

$

9,010

 

$

9,235

 

$

7,518

 

$

9,235

 

$

1,717

 

23

%

$

1,717

 

23

%

$

225

 

2

%

Ameriprise Financial’s shareholders’ equity excluding AOCI - 5 point ave.

 

$

7,637

 

$

7,763

 

$

7,950

 

$

8,214

 

$

8,607

 

$

7,637

 

$

8,607

 

$

970

 

13

%

$

970

 

13

%

$

393

 

5

%

Ameriprise Financial’s shareholders’ equity excluding AOCI / outstanding shares (1)

 

$

33.61

 

$

32.79

 

$

33.89

 

$

34.80

 

$

35.19

 

$

33.61

 

$

35.19

 

$

1.58

 

5

%

$

1.58

 

5

%

$

0.39

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Returned to Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

$

37

 

$

38

 

$

43

 

$

46

 

$

45

 

$

37

 

$

45

 

$

8

 

22

%

$

8

 

22

%

$

(1

)

(2

)%

Common stock share repurchases

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to total capital of Ameriprise Financial

 

22.5

%

22.2

%

17.1

%

16.8

%

20.5

%

22.5

%

20.5

%

(2.0

)%

 

 

(2.0

)%

 

 

3.7

%

 

 

Debt to total capital excluding non-recourse debt and equity of CIEs (1) (2)

 

22.4

%

22.2

%

17.1

%

16.7

%

21.3

%

22.4

%

21.3

%

(1.1

)%

 

 

(1.1

)%

 

 

4.6

%

 

 

Debt to total capital excluding non-recourse debt and equity of CIEs and 75% equity credit (1) (2)

 

19.3

%

19.9

%

14.8

%

14.5

%

19.3

%

19.3

%

19.3

%

 

 

 

 

 

 

4.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill and intangible assets

 

$

1,377

 

$

1,443

 

$

1,419

 

$

1,429

 

$

1,393

 

$

1,377

 

$

1,393

 

$

16

 

1

%

$

16

 

1

%

$

(36

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

395

 

$

478

 

$

507

 

$

499

 

$

481

 

$

395

 

$

481

 

86

 

22

%

86

 

22

%

(18

)

(4

)%

Realized gains (losses)

 

15

 

6

 

14

 

18

 

5

 

15

 

5

 

(10

)

(67

)%

(10

)

(67

)%

(13

)

(72

)%

Affordable housing

 

(6

)

(7

)

(7

)

(5

)

(3

)

(6

)

(3

)

3

 

50

%

3

 

50

%

2

 

40

%

Other (including seed money)

 

13

 

33

 

25

 

22

 

28

 

13

 

28

 

15

 

 

#

15

 

 

#

6

 

27

%

Consolidated investment entities

 

1

 

1

 

(1

)

1

 

79

 

1

 

79

 

78

 

 

#

78

 

 

#

78

 

 

#

Total net investment income

 

$

418

 

$

511

 

$

538

 

$

535

 

$

590

 

$

418

 

$

590

 

172

 

41

%

172

 

41

%

55

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated Equity (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

$

833

 

$

825

 

$

784

 

$

747

 

$

759

 

$

833

 

$

759

 

$

(74

)

(9

)%

$

(74

)

(9

)%

$

12

 

2

%

Asset Management

 

1,039

 

1,043

 

1,059

 

1,054

 

1,044

 

1,039

 

1,044

 

5

 

0

%

5

 

0

%

(10

)

(1

)%

Annuities

 

2,774

 

2,093

 

2,322

 

2,459

 

2,317

 

2,774

 

2,317

 

(457

)

(16

)%

(457

)

(16

)%

(142

)

(6

)%

Protection

 

2,388

 

2,450

 

2,463

 

2,540

 

2,560

 

2,388

 

2,560

 

172

 

7

%

172

 

7

%

20

 

1

%

Corporate & Other

 

484

 

2,087

 

2,144

 

2,210

 

2,555

 

484

 

2,555

 

2,071

 

 

#

2,071

 

 

#

345

 

16

%

Total allocated equity

 

$

7,518

 

$

8,498

 

$

8,772

 

$

9,010

 

$

9,235

 

$

7,518

 

$

9,235

 

$

1,717

 

23

%

$

1,717

 

23

%

$

225

 

2

%

 


(1)   See non-GAAP financial information on pages 38, and 45 - 49.

(2)   See debt to total capital reconciliations on pg 36

(3)   Allocated equity equals Ameriprise Financial equity excluding consolidated investment entities less AOCI

# Variance of 100% or greater.

 

11



 

Ameriprise Financial, Inc.

Segment Summary

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Segment Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

$

726

 

$

785

 

$

832

 

$

873

 

$

879

 

$

726

 

$

879

 

$

153

 

21

%

$

153

 

21

%

$

6

 

1

%

Expenses

 

787

 

788

 

820

 

855

 

828

 

787

 

828

 

41

 

5

%

41

 

5

%

(27

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment income (loss)

 

(61

)

(3

)

12

 

18

 

51

 

(61

)

51

 

112

 

 

#

112

 

 

#

33

 

 

#

Integration charges (1)

 

12

 

16

 

21

 

15

 

2

 

12

 

2

 

(10

)

(83

)%

(10

)

(83

)%

(13

)

(87

)%

Realized (gains) losses (1)

 

10

 

8

 

(5

)

2

 

1

 

10

 

1

 

(9

)

(90

)%

(9

)

(90

)%

(1

)

(50

)%

Pretax operating earnings (loss) (2)

 

$

(39

)

$

21

 

$

28

 

$

35

 

$

54

 

$

(39

)

$

54

 

$

93

 

 

#

$

93

 

 

#

$

19

 

54

%

Allocated Equity

 

833

 

825

 

784

 

747

 

759

 

833

 

759

 

(74

)

(9

)%

(74

)

(9

)%

12

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment margin

 

(8.4

)%

(0.4

)%

1.4

%

2.1

%

5.8

%

(8.4

)%

5.8

%

14.2

%

 

 

14.2

%

 

 

3.7

%

 

 

Pretax operating margin (2)

 

(5.3

)%

2.6

%

3.4

%

4.0

%

6.1

%

(5.3

)%

6.1

%

11.4

%

 

 

11.4

%

 

 

2.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on allocated equity (2) (3)

 

(19.4

)%

(23.8

)%

(18.0

)%

(2.7

)%

6.4

%

(19.4

)%

6.4

%

25.8

%

 

 

25.8

%

 

 

9.1

%

 

 

Operating return on allocated equity (2) (3)

 

6.6

%

3.0

%

2.2

%

3.6

%

11.4

%

6.6

%

11.4

%

4.8

%

 

 

4.8

%

 

 

7.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

$

260

 

$

293

 

$

328

 

$

465

 

$

370

 

$

260

 

$

370

 

$

110

 

42

%

$

110

 

42

%

$

(95

)

(20

)%

Expenses

 

268

 

305

 

318

 

395

 

352

 

268

 

352

 

84

 

31

%

84

 

31

%

(43

)

(11

)%

Pretax segment income (loss)

 

(8

)

(12

)

10

 

70

 

18

 

(8

)

18

 

26

 

 

#

26

 

 

#

(52

)

(74

)%

Integration charges (1)

 

7

 

9

 

7

 

7

 

5

 

7

 

5

 

(2

)

(29

)%

(2

)

(29

)%

(2

)

(29

)%

Realized (gains) losses (1)

 

3

 

 

 

 

(1

)

3

 

(1

)

(4

)

 

#

(4

)

 

#

(1

)

 

Pretax operating earnings (loss) (2)

 

$

2

 

$

(3

)

$

17

 

$

77

 

$

22

 

$

2

 

$

22

 

$

20

 

 

#

$

20

 

 

#

$

(55

)

(71

)%

Allocated Equity

 

1,039

 

1,043

 

1,059

 

1,054

 

1,044

 

1,039

 

1,044

 

5

 

 

5

 

 

(10

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment margin

 

(3.1

)%

(4.1

)%

3.0

%

15.1

%

4.9

%

(3.1

)%

4.9

%

8.0

%

 

 

8.0

%

 

 

(10.2

)%

 

 

Pretax operating margin (2)

 

0.8

%

(1.0

)%

5.2

%

16.6

%

6.0

%

0.8

%

6.0

%

5.2

%

 

 

5.2

%

 

 

(10.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on allocated equity (2) (3)

 

3.6

%

(0.2

)%

(0.5

)%

3.6

%

5.3

%

3.6

%

5.3

%

1.7

%

 

 

1.7

%

 

 

1.7

%

 

 

Operating return on allocated equity (2) (3)

 

4.5

%

1.3

%

1.4

%

5.6

%

7.0

%

4.5

%

7.0

%

2.5

%

 

 

2.5

%

 

 

1.4

%

 

 

 


(1)   Integration charges incurred for acquisitions of HRBFA, J. & W. Seligman and Columbia

(2)   See non-GAAP financial information on pages 38, and 45 - 49.

(3)   Calculated using the statutory tax rate of 35%.

# Variance of 100% or greater.

 

12



 

Ameriprise Financial, Inc.

Segment Summary

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr  Chg - 1Q

 

YTD  Chg - 1Q

 

Seq  Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

$

492

 

$

562

 

$

591

 

$

620

 

$

602

 

$

492

 

$

602

 

$

110

 

22

%

$

110

 

22

%

$

(18

)

(3

)%

Expenses

 

363

 

468

 

323

 

463

 

482

 

363

 

482

 

119

 

33

%

119

 

33

%

19

 

4

%

Pretax segment income

 

$

129

 

$

94

 

$

268

 

$

157

 

$

120

 

$

129

 

$

120

 

$

(9

)

(7

)%

$

(9

)

(7

)%

$

(37

)

(24

)%

Realized (gains) losses (1)

 

(20

)

(8

)

 

(16

)

(3

)

(20

)

(3

)

17

 

85

%

17

 

85

%

13

 

81

%

Pretax operating earnings (2)

 

$

109

 

$

86

 

$

268

 

$

141

 

$

117

 

$

109

 

$

117

 

$

8

 

7

%

$

8

 

7

%

$

(24

)

(17

)%

Allocated Equity

 

2,774

 

2,093

 

2,322

 

2,459

 

2,317

 

2,774

 

2,317

 

(457

)

(16

)%

(457

)

(16

)%

(142

)

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment margin

 

26.2

%

16.7

%

45.3

%

25.3

%

19.9

%

26.2

%

19.9

%

(6.3

)%

 

 

(6.3

)%

 

 

(5.4

)%

 

 

Pretax operating margin (2)

 

23.1

%

15.5

%

45.3

%

23.3

%

19.5

%

23.1

%

19.5

%

(3.6

)%

 

 

(3.6

)%

 

 

(3.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on allocated equity (2) (3)

 

(5.5

)%

(5.0

)%

3.2

%

17.0

%

17.4

%

(5.5

)%

17.4

%

22.9

%

 

 

22.9

%

 

 

0.4

%

 

 

Operating return on allocated equity (2) (3)

 

3.0

%

3.1

%

6.9

%

15.8

%

16.6

%

3.0

%

16.6

%

13.6

%

 

 

13.6

%

 

 

0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Protection

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

$

496

 

$

497

 

$

450

 

$

528

 

$

507

 

$

496

 

$

507

 

$

11

 

2

%

$

11

 

2

%

$

(21

)

(4

)%

Expenses

 

384

 

387

 

305

 

399

 

388

 

384

 

388

 

4

 

1

%

4

 

1

%

(11

)

(3

)%

Pretax segment income

 

$

112

 

$

110

 

$

145

 

$

129

 

$

119

 

$

112

 

$

119

 

$

7

 

6

%

$

7

 

6

%

$

(10

)

(8

)%

Realized (gains) losses (1)

 

(8

)

1

 

(7

)

(13

)

(1

)

(8

)

(1

)

7

 

88

%

7

 

88

%

12

 

92

%

Pretax operating earnings (2)

 

$

104

 

$

111

 

$

138

 

$

116

 

$

118

 

$

104

 

$

118

 

$

14

 

13

%

$

14

 

13

%

$

2

 

2

%

Allocated Equity

 

2,388

 

2,450

 

2,463

 

2,540

 

2,560

 

2,388

 

2,560

 

172

 

7

%

172

 

7

%

20

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment margin

 

22.6

%

22.1

%

32.2

%

24.4

%

23.5

%

22.6

%

23.5

%

0.9

%

 

 

0.9

%

 

 

(0.9

)%

 

 

Pretax operating margin (2)

 

21.3

%

22.3

%

31.2

%

22.5

%

23.3

%

21.3

%

23.3

%

2.0

%

 

 

2.0

%

 

 

0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on allocated equity (2) (3)

 

9.9

%

9.7

%

10.7

%

13.2

%

13.2

%

9.9

%

13.2

%

3.3

%

 

 

3.3

%

 

 

 

 

 

Operating return on allocated equity (2) (3)

 

12.1

%

11.9

%

11.5

%

12.5

%

12.7

%

12.1

%

12.7

%

0.6

%

 

 

0.6

%

 

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate & Other excluding CIEs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

$

29

 

$

(5

)

$

(11

)

$

(11

)

$

21

 

$

29

 

$

21

 

$

(8

)

(28

)%

$

(8

)

(28

)%

$

32

 

 

#

Expenses

 

53

 

61

 

84

 

69

 

50

 

53

 

50

 

(3

)

(6

)%

(3

)

(6

)%

(19

)

(28

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment (loss)

 

(24

)

(66

)

(95

)

(80

)

(29

)

(24

)

(29

)

(5

)

(21

)%

(5

)

(21

)%

51

 

64

%

Integration charges (1)

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

Realized (gains) losses (1)

 

 

(7

)

(2

)

9

 

(1

)

 

(1

)

(1

)

 

(1

)

 

(10

)

 

#

Pretax operating (loss) (2) (3)

 

$

(24

)

$

(73

)

$

(93

)

$

(71

)

$

(30

)

$

(24

)

$

(30

)

$

(6

)

(25

)%

$

(6

)

(25

)%

$

41

 

58

%

Allocated Equity

 

484

 

2,087

 

2,144

 

2,210

 

2,555

 

484

 

2,555

 

2,071

 

 

#

2,071

 

 

#

345

 

16

%

 


(1) Integration charges incurred for acquisitions of HRBFA, J. & W. Seligman and Columbia

(2) See non-GAAP financial information on pages 38, and 45 - 49.

(3) Calculated using the statutory tax rate of 35%.

# Variance of 100% or greater.

 

13



 

GRAPHIC

 

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2010

 

 

Advice & Wealth Management Segment

 

14



 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions, except headcount and where noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

268

 

$

295

 

$

319

 

$

352

 

$

368

 

$

268

 

$

368

 

$

100

 

37

%

$

100

 

37

%

$

16

 

5

%

Distribution fees

 

431

 

423

 

432

 

447

 

436

 

431

 

436

 

5

 

1

%

5

 

1

%

(11

)

(2

)%

Net investment income

 

51

 

82

 

91

 

73

 

74

 

51

 

74

 

23

 

45

%

23

 

45

%

1

 

1

%

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

17

 

23

 

19

 

26

 

22

 

17

 

22

 

5

 

29

%

5

 

29

%

(4

)

(15

)%

Total revenues

 

767

 

823

 

861

 

898

 

900

 

767

 

900

 

133

 

17

%

133

 

17

%

2

 

 

Banking and deposit interest expense

 

41

 

38

 

29

 

25

 

21

 

41

 

21

 

(20

)

(49

)%

(20

)

(49

)%

(4

)

(16

)%

Total net revenues

 

726

 

785

 

832

 

873

 

879

 

726

 

879

 

153

 

21

%

153

 

21

%

6

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

462

 

478

 

504

 

524

 

536

 

462

 

536

 

74

 

16

%

74

 

16

%

12

 

2

%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

325

 

310

 

316

 

331

 

292

 

325

 

292

 

(33

)

(10

)%

(33

)

(10

)%

(39

)

(12

)%

Total expenses

 

787

 

788

 

820

 

855

 

828

 

787

 

828

 

41

 

5

%

41

 

5

%

(27

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment income (loss)

 

(61

)

(3

)

12

 

18

 

51

 

(61

)

51

 

112

 

 

#

112

 

 

#

33

 

 

#

Integration charges included in general and admin expense (1)

 

12

 

16

 

21

 

15

 

2

 

12

 

2

 

(10

)

(83

)%

(10

)

(83

)%

(13

)

(87

)%

Realized (gains) losses included in net investment income

 

10

 

8

 

(5

)

2

 

1

 

10

 

1

 

(9

)

(90

)%

(9

)

(90

)%

(1

)

(50

)%

Pretax operating earnings (2)

 

$

(39

)

$

21

 

$

28

 

$

35

 

$

54

 

$

(39

)

$

54

 

$

93

 

 

 

#

$

93

 

 

#

$

19

 

54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment margin

 

(8.4

)%

(0.4

)%

1.4

%

2.1

%

5.8

%

(8.4

)%

5.8

%

14.2

%

 

 

14.2

%

 

 

3.7

%

 

 

Pretax operating margin (2)

 

(5.3

)%

2.6

%

3.4

%

4.0

%

6.1

%

(5.3

)%

6.1

%

11.4

%

 

 

11.4

%

 

 

2.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

833

 

$

825

 

$

784

 

$

747

 

$

759

 

$

833

 

$

759

 

$

(74

)

(9

)%

$

(74

)

(9

)%

$

12

 

2

%

Return on allocated equity (2) (3)

 

(19.4

)%

(23.8

)%

(18.0

)%

(2.7

)%

6.4

%

(19.4

)%

6.4

%

25.8

%

 

 

25.8

%

 

 

9.1

%

 

 

Operating return on allocated equity (2) (3)

 

6.6

%

3.0

%

2.2

%

3.6

%

11.4

%

6.6

%

11.4

%

4.8

%

 

 

4.8

%

 

 

7.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

55

 

$

78

 

$

76

 

$

68

 

$

59

 

$

55

 

$

59

 

$

4

 

7

%

$

4

 

7

%

$

(9

)

(13

)%

Realized gains (losses)

 

(10

)

(8

)

5

 

(2

)

(1

)

(10

)

(1

)

9

 

90

%

9

 

90

%

1

 

50

%

Other (including seed money)

 

6

 

12

 

10

 

7

 

16

 

6

 

16

 

10

 

 

#

10

 

 

#

9

 

 

#

Total net investment income

 

$

51

 

$

82

 

$

91

 

$

73

 

$

74

 

$

51

 

$

74

 

$

23

 

45

%

$

23

 

45

%

$

1

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

On-balance sheet deposits

 

$

8,416

 

$

9,180

 

$

8,980

 

$

8,489

 

$

8,501

 

$

8,416

 

$

8,501

 

$

85

 

1

%

$

85

 

1

%

$

12

 

 

 


(1)   Integration charges incurred for acquisition of HRBFA

(2)   See non-GAAP financial information on pages 38, and 45 - 49.

(3)   Calculated using the statutory tax rate of 35%.

 

# Variance of 100% or greater.

 

15



 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions, except headcount and where noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates and Banking - Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

 

$

28

 

$

32

 

$

29

 

$

25

 

$

 

$

25

 

$

25

 

 

$

25

 

 

$

(4

)

(14

)%

Allocated equity

 

$

528

 

$

521

 

$

481

 

$

443

 

$

456

 

$

528

 

$

456

 

$

(72

)

(14

)%

$

(72

)

(14

)%

$

13

 

3

%

Operating return on allocated equity (1) (2)

 

0.8

%

5.2

%

8.6

%

12.2

%

15.3

%

0.8

%

15.3

%

14.5

%

 

 

14.5

%

 

 

3.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth Management & Distribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings (loss)

 

$

(39

)

$

(7

)

$

(4

)

$

6

 

$

29

 

$

(39

)

$

29

 

$

68

 

 

 

#

$

68

 

 

#

$

23

 

 

#

Allocated equity

 

$

305

 

$

304

 

$

303

 

$

304

 

$

303

 

$

305

 

$

303

 

$

(2

)

(1

)%

$

(2

)

(1

)%

$

(1

)

 

Operating return on allocated equity (1) (2)

 

11.5

%

0.9

%

(5.4

)%

(8.4

)%

5.1

%

11.5

%

5.1

%

(6.4

)%

 

 

(6.4

)%

 

 

13.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded financial plan net cash sales

 

$

49

 

$

50

 

$

47

 

$

58

 

$

52

 

$

49

 

$

52

 

$

3

 

6

%

$

3

 

6

%

$

(6

)

(10

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Advisors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee advisors

 

2,816

 

2,785

 

2,606

 

2,445

 

2,302

 

2,816

 

2,302

 

(514

)

(18

)%

(514

)

(18

)%

(143

)

(6

)%

Franchisee advisors

 

7,737

 

7,770

 

7,725

 

7,658

 

7,629

 

7,737

 

7,629

 

(108

)

(1

)%

(108

)

(1

)%

(29

)

 

Total branded financial advisors

 

10,553

 

10,555

 

10,331

 

10,103

 

9,931

 

10,553

 

9,931

 

(622

)

(6

)%

(622

)

(6

)%

(172

)

(2

)%

SAI independent advisors

 

1,913

 

1,953

 

1,983

 

1,933

 

1,906

 

1,913

 

1,906

 

(7

)

 

(7

)

 

(27

)

(1

)%

Total financial advisors

 

12,466

 

12,508

 

12,314

 

12,036

 

11,837

 

12,466

 

11,837

 

(629

)

(5

)%

(629

)

(5

)%

(199

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue per financial advisor (in thousands) (3)

 

$

59

 

$

63

 

$

67

 

$

73

 

$

74

 

$

59

 

$

74

 

$

15

 

25

%

$

15

 

25

%

$

1

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisor Retention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee

 

72.3

%

73.4

%

73.7

%

73.7

%

72.9

%

72.3

%

72.9

%

0.6

%

 

 

0.6

%

 

 

(0.8

)%

 

 

Franchisee

 

92.5

%

91.1

%

91.0

%

91.4

%

91.7

%

92.5

%

91.7

%

(0.8

)%

 

 

(0.8

)%

 

 

0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Client Assets (at period end)

 

$

231,298

 

$

258,393

 

$

286,590

 

$

294,027

 

$

303,839

 

$

231,298

 

$

303,839

 

$

72,541

 

31

%

$

72,541

 

31

%

$

9,812

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Wrap Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

72,781

 

$

68,181

 

$

78,960

 

$

89,553

 

$

94,921

 

$

72,781

 

$

94,921

 

$

22,140

 

30

%

$

22,140

 

30

%

$

5,368

 

6

%

Net flows

 

1,302

 

2,758

 

2,724

 

2,564

 

2,512

 

1,302

 

2,512

 

1,210

 

93

%

1,210

 

93

%

(52

)

(2

)%

Market appreciation (depreciation) and other

 

(5,902

)

8,021

 

7,869

 

2,804

 

2,552

 

(5,902

)

2,552

 

8,454

 

 

#

8,454

 

 

#

(252

)

(9

)%

Total wrap ending assets

 

$

68,181

 

$

78,960

 

$

89,553

 

$

94,921

 

$

99,985

 

$

68,181

 

$

99,985

 

$

31,804

 

47

%

$

31,804

 

47

%

$

5,064

 

5

%

 


(1)   See non-GAAP financial information on pages 38, and 45 - 49.

(2)   Calculated using the statutory tax rate of 35%.

(3)   Year-to-date is sum of current and prior quarters for the year under review.

 

# Variance of 100% or greater.

 

16



 

GRAPHIC

 

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2010

 

 

Asset Management Segment

 

17



 

Ameriprise Financial, Inc.

Asset Management Segment

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

209

 

$

231

 

$

270

 

$

396

 

$

307

 

$

209

 

$

307

 

$

98

 

47

%

$

98

 

47

%

$

(89

)

(22

)%

Distribution fees

 

47

 

54

 

55

 

60

 

58

 

47

 

58

 

11

 

23

%

11

 

23

%

(2

)

(3

)%

Net investment income

 

(2

)

7

 

5

 

8

 

4

 

(2

)

4

 

6

 

 

#

6

 

 

#

(4

)

(50

)%

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

6

 

2

 

(1

)

1

 

1

 

6

 

1

 

(5

)

(83

)%

(5

)

(83

)%

 

 

Total revenues

 

260

 

294

 

329

 

465

 

370

 

260

 

370

 

110

 

42

%

110

 

42

%

(95

)

(20

)%

Banking and deposit interest expense

 

 

1

 

1

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

260

 

293

 

328

 

465

 

370

 

260

 

370

 

110

 

42

%

110

 

42

%

(95

)

(20

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

82

 

85

 

97

 

107

 

106

 

82

 

106

 

24

 

29

%

24

 

29

%

(1

)

(1

)%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

6

 

6

 

5

 

4

 

6

 

6

 

6

 

 

 

 

 

2

 

50

%

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

180

 

214

 

216

 

284

 

240

 

180

 

240

 

60

 

33

%

60

 

33

%

(44

)

(15

)%

Total expenses

 

268

 

305

 

318

 

395

 

352

 

268

 

352

 

84

 

31

%

84

 

31

%

(43

)

(11

)%

Pretax segment income (loss)

 

(8

)

(12

)

10

 

70

 

18

 

(8

)

18

 

26

 

 

#

26

 

 

#

(52

)

(74

)%

Integration charges included in general and admin expense (1)

 

7

 

9

 

7

 

7

 

5

 

7

 

5

 

(2

)

(29

)%

(2

)

(29

)%

(2

)

(29

)%

Realized (gains) losses included in net investment income

 

3

 

 

 

 

(1

)

3

 

(1

)

(4

)

 

#

(4

)

 

#

(1

)

 

Pretax operating earnings (2)

 

$

2

 

$

(3

)

$

17

 

$

77

 

$

22

 

$

2

 

$

22

 

$

20

 

 

#

$

20

 

 

#

$

(55

)

(71

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment margin

 

(3.1

)%

(4.1

)%

3.0

%

15.1

%

4.9

%

(3.1

)%

4.9

%

8.0

%

 

 

8.0

%

 

 

(10.2

)%

 

 

Pretax operating margin (2)

 

0.8

%

(1.0

)%

5.2

%

16.6

%

6.0

%

0.8

%

6.0

%

5.2

%

 

 

5.2

%

 

 

(10.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

1,039

 

$

1,043

 

$

1,059

 

$

1,054

 

$

1,044

 

$

1,039

 

$

1,044

 

$

5

 

 

$

5

 

 

$

(10

)

(1

)%

Return on allocated equity (2) (3)

 

3.6

%

(0.2

)%

(0.5

)%

3.6

%

5.3

%

3.6

%

5.3

%

1.7

%

 

 

1.7

%

 

 

1.7

%

 

 

Operating return on allocated equity (2) (3)

 

4.5

%

1.3

%

1.4

%

5.6

%

7.0

%

4.5

%

7.0

%

2.5

%

 

 

2.5

%

 

 

1.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

 

$

1

 

$

 

$

1

 

$

 

$

 

$

 

$

 

 

$

 

 

$

(1

)

 

#

Realized gains (losses)

 

(3

)

 

 

 

1

 

(3

)

1

 

4

 

 

#

4

 

 

#

1

 

 

Other (including seed money)

 

1

 

6

 

5

 

7

 

3

 

1

 

3

 

2

 

 

#

2

 

 

#

(4

)

(57

)%

Total net investment income

 

$

(2

)

$

7

 

$

5

 

$

8

 

$

4

 

$

(2

)

$

4

 

$

6

 

 

#

$

6

 

 

#

$

(4

)

(50

)%

 


(1)      Integration charges incurred for acquisitions of  J. & W. Seligman and Columbia

(2)      See non-GAAP financial information on pages 38, and 45 - 49.

(3)      Calculated using the statutory tax rate of 35%.

 

18



 

Ameriprise Financial, Inc.

Asset Management Segment

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Total Managed Asset net flows

 

$

(147

)

$

45

 

$

2,324

 

$

1,385

 

$

(834

)

$

(147

)

$

(834

)

$

(687

)

 

#

$

(687

)

 

#

$

(2,219

)

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Managed Assets Reconciliations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic managed assets

 

$

125,201

 

$

134,831

 

$

145,790

 

$

149,004

 

$

152,624

 

$

125,201

 

$

152,624

 

$

27,423

 

22

%

$

27,423

 

22

%

$

3,620

 

2

%

International managed assets

 

68,340

 

82,490

 

93,682

 

97,823

 

97,135

 

68,340

 

97,135

 

28,795

 

42

%

28,795

 

42

%

(688

)

(1

)%

Less: Sub-advised eliminations

 

(2,391

)

(3,176

)

(3,494

)

(3,647

)

(3,752

)

(2,391

)

(3,752

)

(1,361

)

(57

)%

(1,361

)

(57

)%

(105

)

(3

)%

Total managed assets

 

$

191,150

 

$

214,145

 

$

235,978

 

$

243,180

 

$

246,007

 

$

191,150

 

$

246,007

 

$

54,857

 

29

%

$

54,857

 

29

%

$

2,827

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed assets - external clients

 

$

134,226

 

$

151,284

 

$

168,183

 

$

173,902

 

$

168,673

 

$

134,226

 

$

168,673

 

$

34,447

 

26

%

$

34,447

 

26

%

$

(5,229

)

(3

)%

Managed assets - consolidated client assets

 

393

 

459

 

648

 

1,099

 

6,916

 

393

 

6,916

 

6,523

 

 

#

6,523

 

 

#

5,817

 

 

#

Managed assets - owned

 

56,531

 

62,402

 

67,147

 

68,179

 

70,418

 

56,531

 

70,418

 

13,887

 

25

%

13,887

 

25

%

2,239

 

3

%

Total managed assets

 

$

191,150

 

$

214,145

 

$

235,978

 

$

243,180

 

$

246,007

 

$

191,150

 

$

246,007

 

$

54,857

 

29

%

$

54,857

 

29

%

$

2,827

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Managed Assets by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

$

64,559

 

$

78,910

 

$

94,539

 

$

98,712

 

$

99,752

 

$

64,559

 

$

99,752

 

$

35,193

 

55

%

$

35,193

 

55

%

$

1,040

 

1

%

Fixed income

 

95,080

 

103,773

 

110,991

 

113,752

 

115,922

 

95,080

 

115,922

 

20,842

 

22

%

20,842

 

22

%

2,170

 

2

%

Money market

 

10,270

 

10,117

 

9,053

 

7,986

 

7,231

 

10,270

 

7,231

 

(3,039

)

(30

)%

(3,039

)

(30

)%

(755

)

(9

)%

Alternative

 

11,604

 

11,330

 

11,662

 

11,590

 

11,808

 

11,604

 

11,808

 

204

 

2

%

204

 

2

%

218

 

2

%

Hybrid and other

 

9,637

 

10,015

 

9,733

 

11,140

 

11,294

 

9,637

 

11,294

 

1,657

 

17

%

1,657

 

17

%

154

 

1

%

Total managed assets by type

 

$

191,150

 

$

214,145

 

$

235,978

 

$

243,180

 

$

246,007

 

$

191,150

 

$

246,007

 

$

54,857

 

29

%

$

54,857

 

29

%

$

2,827

 

1

%

 


# Variance of 100% or greater.

 

19



 

Ameriprise Financial, Inc.

Asset Management Segment - Domestic

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Domestic Managed Assets Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

63,970

 

$

59,832

 

$

66,010

 

$

74,592

 

$

76,860

 

$

63,970

 

$

76,860

 

$

12,890

 

20

%

$

12,890

 

20

%

$

2,268

 

3

%

Net flows

 

(1,258

)

(861

)

299

 

(565

)

(1,096

)

(1,258

)

(1,096

)

162

 

13

%

162

 

13

%

(531

)

(94

)%

Market appreciation (depreciation) and other

 

(2,880

)

7,039

 

8,283

 

2,833

 

2,867

 

(2,880

)

2,867

 

5,747

 

 

#

5,747

 

 

#

34

 

1

%

Total ending assets

 

59,832

 

66,010

 

74,592

 

76,860

 

78,631

 

59,832

 

78,631

 

18,799

 

31

%

18,799

 

31

%

1,771

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

46,293

 

47,954

 

51,905

 

53,886

 

54,961

 

46,293

 

54,961

 

8,668

 

19

%

8,668

 

19

%

1,075

 

2

%

Net flows

 

2,002

 

1,133

 

(443

)

1,351

 

112

 

2,002

 

112

 

(1,890

)

(94

)%

(1,890

)

(94

)%

(1,239

)

(92

)%

Market appreciation (depreciation) and other (1)

 

(341

)

2,818

 

2,424

 

(276

)

1,455

 

(341

)

1,455

 

1,796

 

 

#

1,796

 

 

#

1,731

 

 

#

Total ending assets

 

47,954

 

51,905

 

53,886

 

54,961

 

56,528

 

47,954

 

56,528

 

8,574

 

18

%

8,574

 

18

%

1,567

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

9,378

 

9,048

 

9,131

 

9,666

 

9,791

 

9,378

 

9,791

 

413

 

4

%

413

 

4

%

125

 

1

%

Net flows

 

(623

)

48

 

322

 

66

 

193

 

(623

)

193

 

816

 

 

#

816

 

 

#

127

 

 

#

Market appreciation (depreciation) and other

 

293

 

35

 

213

 

59

 

79

 

293

 

79

 

(214

)

(73

)%

(214

)

(73

)%

20

 

34

%

Total ending assets

 

9,048

 

9,131

 

9,666

 

9,791

 

10,063

 

9,048

 

10,063

 

1,015

 

11

%

1,015

 

11

%

272

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

8,482

 

8,519

 

7,945

 

7,786

 

7,535

 

8,482

 

7,535

 

(947

)

(11

)%

(947

)

(11

)%

(251

)

(3

)%

Net flows

 

54

 

(745

)

(330

)

(331

)

(65

)

54

 

(65

)

(119

)

 

#

(119

)

 

#

266

 

80

%

Market appreciation (depreciation) and other

 

(17

)

171

 

171

 

80

 

85

 

(17

)

85

 

102

 

 

#

102

 

 

#

5

 

6

%

Total ending assets

 

8,519

 

7,945

 

7,786

 

7,535

 

7,555

 

8,519

 

7,555

 

(964

)

(11

)%

(964

)

(11

)%

20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and Eliminations

 

(152

)

(160

)

(140

)

(143

)

(153

)

(152

)

(153

)

(1

)

(1

)%

(1

)

(1

)%

(10

)

(7

)%

Total Domestic managed assets

 

$

125,201

 

$

134,831

 

$

145,790

 

$

149,004

 

$

152,624

 

$

125,201

 

$

152,624

 

$

27,423

 

22

%

$

27,423

 

22

%

$

3,620

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Domestic net flows

 

$

175

 

$

(425

)

$

(152

)

$

521

 

$

(856

)

$

175

 

$

(856

)

$

(1,031

)

 

#

$

(1,031

)

 

#

$

(1,377

)

 

#

 


(1) Included in Market appreciation (depreciation) and other are share repurchase, debt repurchase, equity issuance, debt issuance and acquisitions.

 

# Variance of 100% or greater.

 

20



 

Ameriprise Financial, Inc.

Asset Management Segment - International

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

International Managed Assets Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

16,361

 

$

15,651

 

$

22,107

 

$

26,565

 

$

29,090

 

$

16,361

 

$

29,090

 

$

12,729

 

78

%

$

12,729

 

78

%

$

2,525

 

10

%

Net flows

 

642

 

1,224

 

1,447

 

1,483

 

1,344

 

642

 

1,344

 

702

 

 

#

702

 

 

#

(139

)

(9

)%

Market appreciation (depreciation)

 

(1,054

)

545

 

3,673

 

707

 

1,665

 

(1,054

)

1,665

 

2,719

 

 

#

2,719

 

 

#

958

 

 

#

Foreign currency translation (1)

 

(330

)

2,517

 

(745

)

297

 

(1,769

)

(330

)

(1,769

)

(1,439

)

 

#

(1,439

)

 

#

(2,066

)

 

#

Other (2)

 

32

 

2,170

 

83

 

38

 

63

 

32

 

63

 

31

 

97

%

31

 

97

%

25

 

66

%

Total ending assets

 

15,651

 

22,107

 

26,565

 

29,090

 

30,393

 

15,651

 

30,393

 

14,742

 

94

%

14,742

 

94

%

1,303

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

55,342

 

50,179

 

58,347

 

65,120

 

66,934

 

55,342

 

66,934

 

11,592

 

21

%

11,592

 

21

%

1,814

 

3

%

Net flows

 

(1,277

)

(675

)

943

 

(384

)

(1,300

)

(1,277

)

(1,300

)

(23

)

(2

)%

(23

)

(2

)%

(916

)

 

#

Market appreciation (depreciation)

 

(3,148

)

636

 

7,224

 

930

 

3,014

 

(3,148

)

3,014

 

6,162

 

 

#

6,162

 

 

#

2,084

 

 

#

Foreign currency translation (1)

 

(1,110

)

7,595

 

(1,873

)

784

 

(4,036

)

(1,110

)

(4,036

)

(2,926

)

 

#

(2,926

)

 

#

(4,820

)

 

#

Other

 

372

 

612

 

479

 

484

 

385

 

372

 

385

 

13

 

3

%

13

 

3

%

(99

)

(20

)%

Total ending assets

 

50,179

 

58,347

 

65,120

 

66,934

 

64,997

 

50,179

 

64,997

 

14,818

 

30

%

14,818

 

30

%

(1,937

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

2,544

 

2,510

 

2,036

 

1,997

 

1,799

 

2,544

 

1,799

 

(745

)

(29

)%

(745

)

(29

)%

(198

)

(10

)%

Net flows

 

313

 

(79

)

86

 

(235

)

(22

)

313

 

(22

)

(335

)

 

#

(335

)

 

#

213

 

91

%

Market appreciation (depreciation)

 

(295

)

(700

)

(66

)

4

 

65

 

(295

)

65

 

360

 

 

#

360

 

 

#

61

 

 

#

Foreign currency translation (1)

 

(52

)

305

 

(59

)

29

 

(108

)

(52

)

(108

)

(56

)

 

#

(56

)

 

#

(137

)

 

#

Other

 

 

 

 

4

 

11

 

 

11

 

11

 

 

11

 

 

7

 

 

#

Total ending assets

 

2,510

 

2,036

 

1,997

 

1,799

 

1,745

 

2,510

 

1,745

 

(765

)

(30

)%

(765

)

(30

)%

(54

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total International managed assets

 

$

68,340

 

$

82,490

 

$

93,682

 

$

97,823

 

$

97,135

 

$

68,340

 

$

97,135

 

$

28,795

 

42

%

$

28,795

 

42

%

$

(688

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total International net flows

 

$

(322

)

$

470

 

$

2,476

 

$

864

 

$

22

 

$

(322

)

$

22

 

$

344

 

 

#

$

344

 

 

#

$

(842

)

(97

)%

 


(1) Amounts represent British Pound to US dollar conversion.

(2) Included in Retail funds other, for the 2nd Qtr of 2009, were $ 2.1 B of assets due to the acquisition of Standard Chartered Bank’s World Express Funds investment business.

 

# Variance of 100% or greater.

 

21


 


 

Ameriprise Financial, Inc.

Asset Management Segment

First Quarter 2010

 

 

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

Mutual Fund Performance

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

 

 

 

 

 

 

 

 

 

 

Equal Weighted Mutual Fund Rankings in top 2 Lipper Quartiles

 

 

 

 

 

 

 

 

 

 

 

Equity - 12 month

 

35

%

37

%

49

%

51

%

58

%

Fixed income - 12 month

 

77

%

74

%

58

%

65

%

50

%

Equity - 3 year

 

44

%

42

%

41

%

42

%

45

%

Fixed income - 3 year

 

71

%

79

%

72

%

72

%

68

%

Equity - 5 year

 

51

%

59

%

67

%

63

%

71

%

Fixed income - 5 year

 

72

%

64

%

58

%

58

%

63

%

 

 

 

 

 

 

 

 

 

 

 

 

Asset Weighted Mutual Fund Rankings in top 2 Lipper Quartiles

 

 

 

 

 

 

 

 

 

 

 

Equity - 12 month

 

31

%

39

%

52

%

72

%

78

%

Fixed income - 12 month

 

62

%

42

%

61

%

80

%

51

%

Equity - 3 year

 

39

%

40

%

51

%

50

%

56

%

Fixed income - 3 year

 

40

%

47

%

65

%

63

%

59

%

Equity - 5 year

 

63

%

67

%

74

%

69

%

75

%

Fixed income - 5 year

 

63

%

39

%

61

%

58

%

58

%

 

 

 

 

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

 

 

 

 

Equal Weighted Mutual Fund Rankings in top 2 S&P Quartiles

 

 

 

 

 

 

 

 

 

 

 

Equity - 12 month

 

93

%

69

%

64

%

38

%

31

%

Fixed income - 12 month

 

64

%

73

%

82

%

60

%

60

%

Equity - 3 year

 

93

%

93

%

89

%

90

%

93

%

Fixed income - 3 year

 

73

%

73

%

64

%

80

%

80

%

Equity - 5 year

 

93

%

89

%

85

%

89

%

93

%

Fixed income - 5 year

 

70

%

70

%

70

%

78

%

78

%

 

Equal Weighted Rankings in Top 2 Quartiles: Counts the number of Class A funds with above median ranking divided by the total number of Class A funds.  Asset size is not a factor.

 

Asset Weighted Rankings in Top 2 Quartiles: Sums the assets of the Class A funds with above median ranking divided by the total Class A assets.  Funds with more assets will receive a greater share of the total percentage above or below median.

 

Aggregated data shows only actively-managed mutual funds by affiliated investment managers.

 

Aggregated data do not include mutual funds sub-advised by advisors not affiliated with Ameriprise Financial, Inc., RiverSource S&P 500 Index Fund, RiverSource Cash Management Fund and RiverSource Tax Free Money Market Fund.

 

Aggregated equity rankings include RiverSource Portfolio Builder Series and other balanced and asset allocation funds that invest in both equities and fixed income.

 

RiverSource Portfolio Builder Series funds are funds of mutual funds that may invest in third-party sub-advised funds.

 

22


 


 

GRAPHIC

 

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2010

 

 

Annuities Segment

 

23


 


 

Ameriprise Financial, Inc.

Annuities Segment

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

90

 

$

104

 

$

118

 

$

126

 

$

127

 

$

90

 

$

127

 

$

37

 

41

%

$

37

 

41

%

$

1

 

1

%

Distribution fees

 

57

 

58

 

64

 

68

 

70

 

57

 

70

 

13

 

23

%

13

 

23

%

2

 

3

%

Net investment income

 

289

 

339

 

343

 

352

 

330

 

289

 

330

 

41

 

14

%

41

 

14

%

(22

)

(6

)%

Premiums

 

24

 

23

 

25

 

32

 

31

 

24

 

31

 

7

 

29

%

7

 

29

%

(1

)

(3

)%

Other revenues

 

32

 

38

 

41

 

42

 

44

 

32

 

44

 

12

 

38

%

12

 

38

%

2

 

5

%

Total revenues

 

492

 

562

 

591

 

620

 

602

 

492

 

602

 

110

 

22

%

110

 

22

%

(18

)

(3

)%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

492

 

562

 

591

 

620

 

602

 

492

 

602

 

110

 

22

%

110

 

22

%

(18

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

56

 

49

 

49

 

57

 

61

 

56

 

61

 

5

 

9

%

5

 

9

%

4

 

7

%

Interest credited to fixed accounts

 

169

 

201

 

196

 

193

 

192

 

169

 

192

 

23

 

14

%

23

 

14

%

(1

)

(1

)%

Benefits, claims, losses and settlement expenses

 

(129

)

351

 

93

 

103

 

118

 

(129

)

118

 

247

 

 

#

247

 

 

#

15

 

15

%

Amortization of deferred acquisition costs

 

219

 

(182

)

(64

)

64

 

60

 

219

 

60

 

(159

)

(73

)%

(159

)

(73

)%

(4

)

(6

)%

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

48

 

49

 

49

 

46

 

51

 

48

 

51

 

3

 

6

%

3

 

6

%

5

 

11

%

Total expenses

 

363

 

468

 

323

 

463

 

482

 

363

 

482

 

119

 

33

%

119

 

33

%

19

 

4

%

Pretax segment income

 

129

 

94

 

268

 

157

 

120

 

129

 

120

 

(9

)

(7

)%

(9

)

(7

)%

(37

)

(24

)%

Realized (gains) losses included in net investment income

 

(20

)

(8

)

 

(16

)

(3

)

(20

)

(3

)

17

 

85

%

17

 

85

%

13

 

81

%

Pretax operating earnings (1)

 

$

109

 

$

86

 

$

268

 

$

141

 

$

117

 

$

109

 

$

117

 

8

 

7

%

8

 

7

%

(24

)

(17

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment margin

 

26.2

%

16.7

%

45.3

%

25.3

%

19.9

%

26.2

%

19.9

%

(6.3

)%

 

 

(6.3

)%

 

 

(5.4

)%

 

 

Pretax operating margin (1)

 

23.1

%

15.5

%

45.3

%

23.3

%

19.5

%

23.1

%

19.5

%

(3.6

)%

 

 

(3.6

)%

 

 

(3.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

2,774

 

$

2,093

 

$

2,322

 

$

2,459

 

$

2,317

 

$

2,774

 

$

2,317

 

$

(457

)

(16

)%

$

(457

)

(16

)%

$

(142

)

(6

)%

Return on allocated equity (1) (2)

 

(5.5

)%

(5.0

)%

3.2

%

17.0

%

17.4

%

(5.5

)%

17.4

%

22.9

%

 

 

22.9

%

 

 

0.4

%

 

 

Operating return on allocated equity (1) (2)

 

3.0

%

3.1

%

6.9

%

15.8

%

16.6

%

3.0

%

16.6

%

13.6

%

 

 

13.6

%

 

 

0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

259

 

$

314

 

$

336

 

$

337

 

$

324

 

$

259

 

$

324

 

$

65

 

25

%

$

65

 

25

%

$

(13

)

(4

)%

Realized gains (losses)

 

20

 

8

 

 

16

 

3

 

20

 

3

 

(17

)

(85

)%

(17

)

(85

)%

(13

)

(81

)%

Other (including seed money)

 

10

 

17

 

7

 

(1

)

3

 

10

 

3

 

(7

)

(70

)%

(7

)

(70

)%

4

 

 

#

Total net investment income

 

$

289

 

$

339

 

$

343

 

$

352

 

$

330

 

$

289

 

$

330

 

$

41

 

14

%

$

41

 

14

%

$

(22

)

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net variable annuity living benefits market impact (3)

 

$

267

 

$

(360

)

$

(66

)

$

(3

)

$

(24

)

$

267

 

$

(24

)

$

(291

)

 

#

$

(291

)

 

#

$

(21

)

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total annuity net flows

 

$

1,779

 

$

1,129

 

$

527

 

$

255

 

$

(68

)

$

1,779

 

$

(68

)

$

(1,847

)

 

#

$

(1,847

)

 

#

$

(323

)

 

#

 


(1) See non-GAAP financial information on pages 38, and 45 - 49.

(2) Calculated using the statutory tax rate of 35%.

(3) Guaranteed Minimum Withdrawal Benefit (GMWB) and Guaranteed Minimum Accumulation Benefit (GMAB) only.

# Variance of 100% or greater.

 

24


 


 

Ameriprise Financial, Inc.

Annuities Segment

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

 

$

81

 

$

34

 

$

189

 

$

82

 

$

57

 

$

81

 

$

57

 

$

(24

)

(30

)%

$

(24

)

(30

)%

$

(25

)

(30

)%

Allocated equity

 

$

1,099

 

$

801

 

$

988

 

$

1,005

 

$

971

 

$

1,099

 

$

971

 

$

(128

)

(12

)%

$

(128

)

(12

)%

$

(34

)

(3

)%

Operating return on allocated equity (1) (2)

 

3.3

%

1.9

%

6.3

%

24.1

%

24.2

%

3.3

%

24.2

%

20.9

%

 

 

20.9

%

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Annuities (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

 

$

28

 

$

52

 

$

79

 

$

59

 

$

60

 

$

28

 

$

60

 

$

32

 

 

#

$

32

 

 

#

$

1

 

2

%

Allocated equity

 

$

1,675

 

$

1,292

 

$

1,334

 

$

1,454

 

$

1,346

 

$

1,675

 

$

1,346

 

$

(329

)

(20

)%

$

(329

)

(20

)%

$

(108

)

(7

)%

Operating return on allocated equity (1) (2)

 

14.4

%

14.4

%

16.0

%

9.8

%

11.4

%

14.4

%

11.4

%

(3.0

)%

 

 

(3.0

)%

 

 

1.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

43,280

 

$

41,468

 

$

47,104

 

$

52,995

 

$

55,106

 

$

43,280

 

$

55,106

 

$

11,826

 

27

%

$

11,826

 

27

%

$

2,111

 

4

%

Deposits

 

1,322

 

1,411

 

1,435

 

1,378

 

1,181

 

1,322

 

1,181

 

(141

)

(11

)%

(141

)

(11

)%

(197

)

(14

)%

Withdrawals and terminations

 

(994

)

(844

)

(909

)

(980

)

(1,083

)

(994

)

(1,083

)

(89

)

(9

)%

(89

)

(9

)%

(103

)

(11

)%

Net flows

 

328

 

567

 

526

 

398

 

98

 

328

 

98

 

(230

)

(70

)%

(230

)

(70

)%

(300

)

(75

)%

Investment performance and interest credited

 

(2,137

)

5,060

 

5,365

 

1,713

 

1,859

 

(2,137

)

1,859

 

3,996

 

 

#

3,996

 

 

#

146

 

9

%

Other

 

(3

)

9

 

 

 

(85

)

(3

)

(85

)

(82

)

 

#

(82

)

 

#

(85

)

 

Total ending balance - contract accumulation values

 

$

41,468

 

$

47,104

 

$

52,995

 

$

55,106

 

$

56,978

 

$

41,468

 

$

56,978

 

$

15,510

 

37

%

$

15,510

 

37

%

$

1,872

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable annuities fixed sub-accounts

 

$

5,919

 

$

5,987

 

$

6,036

 

$

6,124

 

$

6,119

 

$

5,919

 

$

6,119

 

$

200

 

3

%

$

200

 

3

%

$

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Annuities Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

12,228

 

$

13,805

 

$

14,464

 

$

14,615

 

$

14,623

 

$

12,228

 

$

14,623

 

$

2,395

 

20

%

$

2,395

 

20

%

$

8

 

 

Deposits

 

2,097

 

974

 

343

 

167

 

163

 

2,097

 

163

 

(1,934

)

(92

)%

(1,934

)

(92

)%

(4

)

(2

)%

Withdrawals and terminations

 

(646

)

(412

)

(342

)

(310

)

(329

)

(646

)

(329

)

317

 

49

%

317

 

49

%

(19

)

(6

)%

Net flows

 

1,451

 

562

 

1

 

(143

)

(166

)

1,451

 

(166

)

(1,617

)

 

#

(1,617

)

 

#

(23

)

(16

)%

Policyholder interest credited

 

126

 

145

 

151

 

151

 

142

 

126

 

142

 

16

 

13

%

16

 

13

%

(9

)

(6

)%

Other

 

 

(48

)

(1

)

 

 

 

 

 

 

 

 

 

 

Total ending balance - contract accumulation values

 

$

13,805

 

$

14,464

 

$

14,615

 

$

14,623

 

$

14,599

 

$

13,805

 

$

14,599

 

$

794

 

6

%

$

794

 

6

%

$

(24

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized Interest

 

$

10

 

$

10

 

$

9

 

$

8

 

$

5

 

$

10

 

$

5

 

$

(5

)

(50

)%

$

(5

)

(50

)%

$

(3

)

(38

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payout Annuities Reserve Balance

 

$

2,082

 

$

2,115

 

$

2,104

 

$

2,102

 

$

2,094

 

$

2,082

 

$

2,094

 

$

12

 

1

%

$

12

 

1

%

$

(8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Equivalent Spread - Fixed Annuities (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross rate of return on invested assets (5)

 

5.5

%

6.3

%

6.4

%

6.1

%

6.0

%

5.5

%

6.0

%

0.5

%

 

 

0.5

%

 

 

(0.1

)%

 

 

Crediting rate excluding capitalized interest

 

(3.8

)%

(4.0

)%

(4.0

)%

(3.9

)%

(3.9

)%

(3.8

)%

(3.9

)%

(0.1

)%

 

 

(0.1

)%

 

 

 

 

 

Tax equivalent margin spread

 

1.7

%

2.3

%

2.4

%

2.2

%

2.1

%

1.7

%

2.1

%

0.4

%

 

 

0.4

%

 

 

(0.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Variable Annuities DAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

2,063

 

$

1,894

 

$

2,060

 

$

2,116

 

$

2,132

 

$

2,063

 

$

2,132

 

$

69

 

3

%

$

69

 

3

%

$

16

 

1

%

Capitalization

 

61

 

68

 

68

 

64

 

53

 

61

 

53

 

(8

)

(13

)%

(8

)

(13

)%

(11

)

(17

)%

Amortization per income statement

 

(207

)

200

 

70

 

(48

)

(46

)

(207

)

(46

)

161

 

78

%

161

 

78

%

2

 

4

%

Other (FAS 115)

 

(23

)

(102

)

(82

)

 

(18

)

(23

)

(18

)

5

 

22

%

5

 

22

%

(18

)

 

Total ending balance

 

$

1,894

 

$

2,060

 

$

2,116

 

$

2,132

 

$

2,121

 

$

1,894

 

$

2,121

 

$

227

 

12

%

$

227

 

12

%

$

(11

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Annuities DAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

316

 

$

366

 

$

389

 

$

304

 

$

301

 

$

316

 

$

301

 

$

(15

)

(5

)%

$

(15

)

(5

)%

$

(3

)

(1

)%

Capitalization

 

99

 

46

 

19

 

8

 

7

 

99

 

7

 

(92

)

(93

)%

(92

)

(93

)%

(1

)

(13

)%

Amortization per income statement

 

(12

)

(18

)

(6

)

(16

)

(14

)

(12

)

(14

)

(2

)

(17

)%

(2

)

(17

)%

2

 

13

%

Other (FAS 115)

 

(37

)

(5

)

(98

)

5

 

(47

)

(37

)

(47

)

(10

)

(27

)%

(10

)

(27

)%

(52

)

 

#

Total ending balance

 

$

366

 

$

389

 

$

304

 

$

301

 

$

247

 

$

366

 

$

247

 

$

(119

)

(33

)%

$

(119

)

(33

)%

$

(54

)

(18

)%

 


(1)        Calculated using the statutory tax rate of 35%.

(2)        See non-GAAP financial information on pages 38, and 45 - 49.

(3)        Includes payout annuities.

(4)        Attributable to interest sensitive products only, which have been approximately 98% of the total ending fixed annuities accumulation values in the periods reported.  The asset earnings rate is a calculated yield based on specifically assigned assets.

(5)        The Gross rate of returns on invested assets for both the 4th quarter 2009 and the first quarter of 2010 are affected by significant purchases of forward settle Agency Backed TBA positions that are recorded on a trade basis. Without these positions, the Gross rate of return on invested assets for the 4th quarter 2009 would be approximately 6.3%, and 6.1% for 1st quarter 2010.

#            Variance of 100% or greater.

 

25


 

 


 

GRAPHIC

 

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2010

 

 

Protection Segment

 

26


 


 

Ameriprise Financial, Inc.

Protection Segment

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

10

 

$

11

 

$

13

 

$

13

 

$

13

 

$

10

 

$

13

 

$

3

 

30

%

$

3

 

30

%

$

 

 

Distribution fees

 

24

 

24

 

24

 

25

 

24

 

24

 

24

 

 

 

 

 

(1

)

(4

)%

Net investment income

 

100

 

97

 

112

 

113

 

103

 

100

 

103

 

3

 

3

%

3

 

3

%

(10

)

(9

)%

Premiums

 

247

 

254

 

257

 

262

 

257

 

247

 

257

 

10

 

4

%

10

 

4

%

(5

)

(2

)%

Other revenues

 

115

 

111

 

44

 

116

 

110

 

115

 

110

 

(5

)

(4

)%

(5

)

(4

)%

(6

)

(5

)%

Total revenues

 

496

 

497

 

450

 

529

 

507

 

496

 

507

 

11

 

2

%

11

 

2

%

(22

)

(4

)%

Banking and deposit interest expense

 

 

 

 

1

 

 

 

 

 

 

 

 

(1

)

 

#

Total net revenues

 

496

 

497

 

450

 

528

 

507

 

496

 

507

 

11

 

2

%

11

 

2

%

(21

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

5

 

6

 

4

 

7

 

8

 

5

 

8

 

3

 

60

%

3

 

60

%

1

 

14

%

Interest credited to fixed accounts

 

36

 

36

 

36

 

36

 

36

 

36

 

36

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

229

 

236

 

213

 

246

 

236

 

229

 

236

 

7

 

3

%

7

 

3

%

(10

)

(4

)%

Amortization of deferred acquisition costs

 

61

 

51

 

(5

)

52

 

52

 

61

 

52

 

(9

)

(15

)%

(9

)

(15

)%

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

53

 

58

 

57

 

58

 

56

 

53

 

56

 

3

 

6

%

3

 

6

%

(2

)

(3

)%

Total expenses

 

384

 

387

 

305

 

399

 

388

 

384

 

388

 

4

 

1

%

4

 

1

%

(11

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment income

 

112

 

110

 

145

 

129

 

119

 

112

 

119

 

7

 

6

%

7

 

6

%

(10

)

(8

)%

Realized (gains) losses included in net investment income

 

(8

)

1

 

(7

)

(13

)

(1

)

(8

)

(1

)

7

 

88

%

7

 

88

%

12

 

92

%

Pretax operating earnings (1)

 

$

104

 

$

111

 

$

138

 

$

116

 

$

118

 

$

104

 

$

118

 

14

 

13

%

14

 

13

%

2

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment margin

 

22.6

%

22.1

%

32.2

%

24.4

%

23.5

%

22.6

%

23.5

%

0.9

%

 

 

0.9

%

 

 

(0.9

)%

 

 

Pretax operating margin (1)

 

21.3

%

22.3

%

31.2

%

22.5

%

23.3

%

21.3

%

23.3

%

2.0

%

 

 

2.0

%

 

 

0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

2,388

 

$

2,450

 

$

2,463

 

$

2,540

 

$

2,560

 

$

2,388

 

$

2,560

 

$

172

 

7

%

$

172

 

7

%

$

20

 

1

%

Return on allocated equity (1) (2)

 

9.9

%

9.7

%

10.7

%

13.2

%

13.2

%

9.9

%

13.2

%

3.3

%

 

 

3.3

%

 

 

 

 

 

Operating return on allocated equity (1) (2)

 

12.1

%

11.9

%

11.5

%

12.5

%

12.7

%

12.1

%

12.7

%

0.6

%

 

 

0.6

%

 

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

81

 

$

85

 

$

94

 

$

93

 

$

95

 

$

81

 

$

95

 

$

14

 

17

%

$

14

 

17

%

$

2

 

2

%

Realized gains (losses)

 

8

 

(1

)

7

 

13

 

1

 

8

 

1

 

(7

)

(88

)%

(7

)

(88

)%

(12

)

(92

)%

Other (including seed money)

 

11

 

13

 

11

 

7

 

7

 

11

 

7

 

(4

)

(36

)%

(4

)

(36

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net investment income

 

$

100

 

$

97

 

$

112

 

$

113

 

$

103

 

$

100

 

$

103

 

$

3

 

3

%

$

3

 

3

%

$

(10

)

(9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long Term Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

 

$

10

 

$

5

 

$

9

 

$

12

 

$

14

 

$

10

 

$

14

 

$

4

 

40

%

$

4

 

40

%

$

2

 

17

%

Allocated equity

 

$

569

 

$

578

 

$

590

 

$

620

 

$

622

 

$

569

 

$

622

 

$

53

 

9

%

$

53

 

9

%

$

2

 

 

Operating return on allocated equity (1) (2)

 

1.5

%

1.9

%

3.1

%

4.0

%

4.4

%

1.5

%

4.4

%

2.9

%

 

 

2.9

%

 

 

0.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Protection excluding Long Term Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

 

$

94

 

$

106

 

$

129

 

$

104

 

$

104

 

$

94

 

$

104

 

$

10

 

11

%

$

10

 

11

%

$

 

 

Allocated equity

 

$

1,819

 

$

1,872

 

$

1,873

 

$

1,920

 

$

1,938

 

$

1,819

 

$

1,938

 

$

119

 

7

%

$

119

 

7

%

$

18

 

1

%

Operating return on allocated equity (1) (2)

 

15.5

%

15.1

%

14.2

%

15.2

%

15.3

%

15.5

%

15.3

%

(0.2

)%

 

 

(0.2

)%

 

 

0.1

%

 

 

 


(1)   See non-GAAP financial information on pages 38, and 45 - 49.

(2)   Calculated using the statutory tax rate of 35%.

 

#  Variance of 100% or greater.

 

27



 

Ameriprise Financial, Inc.

Protection Segment

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Cash Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL (1)

 

$

33

 

$

45

 

$

55

 

$

56

 

$

54

 

$

33

 

$

54

 

$

21

 

64

%

$

21

 

64

%

$

(2

)

(4

)%

Term and whole life

 

3

 

4

 

4

 

4

 

3

 

3

 

3

 

 

 

 

 

(1

)

(25

)%

Disability insurance

 

1

 

3

 

1

 

2

 

1

 

1

 

1

 

 

 

 

 

(1

)

(50

)%

Auto and Home

 

165

 

165

 

178

 

166

 

177

 

165

 

177

 

12

 

7

%

12

 

7

%

11

 

7

%

Total cash sales

 

$

202

 

$

217

 

$

238

 

$

228

 

$

235

 

$

202

 

$

235

 

$

33

 

16

%

$

33

 

16

%

$

7

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL Policyholder Account Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

7,570

 

$

7,350

 

$

7,957

 

$

8,593

 

$

8,803

 

$

7,570

 

$

8,803

 

$

1,233

 

16

%

$

1,233

 

16

%

$

210

 

2

%

Premiums and deposits

 

228

 

231

 

242

 

248

 

236

 

228

 

236

 

8

 

4

%

8

 

4

%

(12

)

(5

)%

Investment performance and interest

 

(260

)

644

 

674

 

244

 

247

 

(260

)

247

 

507

 

 

#

507

 

 

#

3

 

1

%

Withdrawals and surrenders

 

(254

)

(268

)

(280

)

(282

)

(277

)

(254

)

(277

)

(23

)

(9

)%

(23

)

(9

)%

5

 

2

%

Other

 

66

 

 

 

 

 

66

 

 

(66

)

 

#

(66

)

 

#

 

 

Total ending balance

 

$

7,350

 

$

7,957

 

$

8,593

 

$

8,803

 

$

9,009

 

$

7,350

 

$

9,009

 

$

1,659

 

23

%

$

1,659

 

23

%

$

206

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums by Product

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term and whole life

 

$

14

 

$

14

 

$

14

 

$

14

 

$

13

 

$

14

 

$

13

 

$

(1

)

(7

)%

$

(1

)

(7

)%

$

(1

)

(7

)%

Disability insurance

 

43

 

42

 

43

 

42

 

41

 

43

 

41

 

(2

)

(5

)%

(2

)

(5

)%

(1

)

(2

)%

Long term care

 

29

 

30

 

30

 

31

 

29

 

29

 

29

 

 

 

 

 

(2

)

(6

)%

Auto and Home

 

156

 

160

 

164

 

168

 

167

 

156

 

167

 

11

 

7

%

11

 

7

%

(1

)

(1

)%

Intercompany premiums

 

5

 

8

 

6

 

7

 

7

 

5

 

7

 

2

 

40

%

2

 

40

%

 

 

Total premiums by product

 

$

247

 

$

254

 

$

257

 

$

262

 

$

257

 

$

247

 

$

257

 

$

10

 

4

%

$

10

 

4

%

$

(5

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto and Home Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy count (thousands)

 

558

 

570

 

581

 

594

 

608

 

558

 

608

 

50

 

9

%

50

 

9

%

14

 

2

%

Loss ratio

 

79.6

%

79.6

%

80.4

%

81.8

%

81.3

%

79.6

%

81.3

%

1.7

%

 

 

1.7

%

 

 

(0.5

)%

 

 

Expense ratio

 

14.8

%

15.2

%

15.0

%

17.5

%

14.7

%

14.8

%

14.7

%

(0.1

)%

 

 

(0.1

)%

 

 

(2.8

)%

 

 

Combined ratio

 

94.4

%

94.8

%

95.4

%

99.3

%

96.0

%

94.4

%

96.0

%

1.6

%

 

 

1.6

%

 

 

(3.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DAC Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life and Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,946

 

$

1,920

 

$

1,858

 

$

1,853

 

$

1,852

 

$

1,946

 

$

1,852

 

$

(94

)

(5

)%

$

(94

)

(5

)%

$

(1

)

 

Capitalization

 

29

 

30

 

32

 

33

 

27

 

29

 

27

 

(2

)

(7

)%

(2

)

(7

)%

(6

)

(18

)%

Amortization per income statement

 

(48

)

(38

)

17

 

(39

)

(39

)

(48

)

(39

)

9

 

19

%

9

 

19

%

 

 

Other (FAS 115)

 

(7

)

(54

)

(54

)

5

 

(12

)

(7

)

(12

)

(5

)

(71

)%

(5

)

(71

)%

(17

)

 

#

Total ending balance

 

$

1,920

 

$

1,858

 

$

1,853

 

$

1,852

 

$

1,828

 

$

1,920

 

$

1,828

 

$

(92

)

(5

)%

$

(92

)

(5

)%

$

(24

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life insurance in force

 

$

192,022

 

$

192,186

 

$

192,558

 

$

192,871

 

$

192,477

 

$

192,022

 

$

192,477

 

$

455

 

 

$

455

 

 

$

(394

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Amount at Risk

 

$

55,578

 

$

54,336

 

$

53,346

 

$

52,575

 

$

51,502

 

$

55,578

 

$

51,502

 

$

(4,076

)

(7

)%

$

(4,076

)

(7

)%

$

(1,073

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Policyholder Reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL

 

$

6,360

 

$

6,911

 

$

7,552

 

$

7,776

 

$

7,991

 

$

6,360

 

$

7,991

 

$

1,631

 

26

%

$

1,631

 

26

%

$

215

 

3

%

Term and whole life

 

236

 

234

 

238

 

236

 

230

 

236

 

230

 

(6

)

(3

)%

(6

)

(3

)%

(6

)

(3

)%

Disability insurance

 

469

 

472

 

476

 

480

 

486

 

469

 

486

 

17

 

4

%

17

 

4

%

6

 

1

%

Long term care and other

 

2,351

 

2,374

 

2,401

 

2,424

 

2,443

 

2,351

 

2,443

 

92

 

4

%

92

 

4

%

19

 

1

%

Auto and Home loss and LAE reserves

 

303

 

304

 

306

 

313

 

314

 

303

 

314

 

11

 

4

%

11

 

4

%

1

 

 

Total net policyholder reserves

 

$

9,719

 

$

10,295

 

$

10,973

 

$

11,229

 

$

11,464

 

$

9,719

 

$

11,464

 

$

1,745

 

18

%

$

1,745

 

18

%

$

235

 

2

%

 


(1)   Includes lump sum deposits.

#    Variance of 100% or greater.

 

28



 

GRAPHIC

 

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2010

 

 

Corporate & Other Segment

 

29



 

Ameriprise Financial, Inc.

Corporate & Other Segment

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

(20

)

(14

)

(12

)

(11

)

79

 

(20

)

79

 

99

 

 

#

99

 

 

#

90

 

 

#

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

39

 

1

 

6

 

44

 

78

 

39

 

78

 

39

 

 

#

39

 

 

#

34

 

77

%

Total revenues

 

19

 

(13

)

(6

)

33

 

157

 

19

 

157

 

138

 

 

#

138

 

 

#

124

 

 

#

Banking and deposit interest expense

 

2

 

(1

)

3

 

3

 

 

2

 

 

(2

)

 

#

(2

)

 

#

(3

)

 

#

Total net revenues

 

17

 

(12

)

(9

)

30

 

157

 

17

 

157

 

140

 

 

#

140

 

 

#

127

 

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

1

 

1

 

 

1

 

 

1

 

 

(1

)

 

#

(1

)

 

#

(1

)

 

#

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

26

 

28

 

45

 

28

 

64

 

26

 

64

 

38

 

 

#

38

 

 

#

36

 

 

#

General and administrative expense

 

28

 

33

 

41

 

44

 

40

 

28

 

40

 

12

 

43

%

12

 

43

%

(4

)

(9

)%

Total expenses

 

55

 

62

 

86

 

73

 

104

 

55

 

104

 

49

 

89

%

49

 

89

%

31

 

42

%

Pretax segment income (loss)

 

(38

)

(74

)

(95

)

(43

)

53

 

(38

)

53

 

91

 

 

#

91

 

 

#

96

 

 

#

Pretax income (loss) attributable to noncontrolling interests

 

(14

)

(8

)

 

37

 

82

 

(14

)

82

 

96

 

 

#

96

 

 

#

45

 

 

#

Pretax segment income (loss) attributable to Ameriprise Financial

 

(24

)

(66

)

(95

)

(80

)

(29

)

(24

)

(29

)

(5

)

(21

)%

(5

)

(21

)%

51

 

64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

 

$

 

$

1

 

$

 

$

96

 

$

 

$

96

 

$

96

 

 

$

96

 

 

$

96

 

 

Realized gains (losses)

 

 

7

 

2

 

(9

)

(13

)

 

(13

)

(13

)

 

(13

)

 

(4

)

(44

)%

Affordable housing

 

(6

)

(7

)

(7

)

(5

)

(3

)

(6

)

(3

)

3

 

50

%

3

 

50

%

2

 

40

%

Other

 

(14

)

(14

)

(8

)

3

 

(1

)

(14

)

(1

)

13

 

93

%

13

 

93

%

(4

)

 

#

Total net investment income

 

$

(20

)

$

(14

)

$

(12

)

$

(11

)

$

79

 

$

(20

)

$

79

 

99

 

 

#

99

 

 

#

90

 

 

#

 


# Variance of 100% or greater.

 

30


 

 


 

Ameriprise Financial, Inc.

Corporate & Other Segment - Consolidated Investment Entities

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

1

 

1

 

(1

)

1

 

79

 

1

 

79

 

78

 

 

#

78

 

 

#

78

 

 

#

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

(12

)

(7

)

4

 

43

 

57

 

(12

)

57

 

69

 

 

#

69

 

 

#

14

 

33

%

Total revenues

 

(11

)

(6

)

3

 

44

 

136

 

(11

)

136

 

147

 

 

#

147

 

 

#

92

 

 

#

Banking and deposit interest expense

 

1

 

1

 

1

 

3

 

 

1

 

 

(1

)

 

#

(1

)

 

#

(3

)

 

#

Total net revenues

 

(12

)

(7

)

2

 

41

 

136

 

(12

)

136

 

148

 

 

#

148

 

 

#

95

 

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

40

 

 

40

 

40

 

 

40

 

 

40

 

 

General and administrative expense

 

2

 

1

 

2

 

4

 

14

 

2

 

14

 

12

 

 

#

12

 

 

#

10

 

 

#

Total expenses

 

2

 

1

 

2

 

4

 

54

 

2

 

54

 

52

 

 

#

52

 

 

#

50

 

 

#

Pretax segment income (loss)

 

(14

)

(8

)

 

37

 

82

 

(14

)

82

 

96

 

 

#

96

 

 

#

45

 

 

#

Pretax income (loss) attributable to noncontrolling interests

 

(14

)

(8

)

 

37

 

82

 

(14

)

82

 

96

 

 

#

96

 

 

#

45

 

 

#

Pretax segment income (loss) attributable to CIEs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

 

$

 

$

 

$

 

$

93

 

$

 

$

93

 

$

93

 

 

$

93

 

 

$

93

 

 

Realized gains (losses)

 

 

 

 

 

(14

)

 

(14

)

(14

)

 

(14

)

 

(14

)

 

Affordable housing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

1

 

1

 

(1

)

1

 

 

1

 

 

(1

)

 

#

(1

)

 

#

(1

)

 

#

Total net investment income

 

$

1

 

$

1

 

$

(1

)

$

1

 

$

79

 

$

1

 

$

79

 

78

 

 

#

78

 

 

#

78

 

 

#

 


# Variance of 100% or greater.

 

31



 

Ameriprise Financial, Inc.

Corporate & Other Segment  Excluding Consolidated Investment Entities

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

(21

)

(15

)

(11

)

(12

)

 

(21

)

 

21

 

 

#

21

 

 

#

12

 

 

#

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

51

 

8

 

2

 

1

 

21

 

51

 

21

 

(30

)

(59

)% 

(30

)

(59

)% 

20

 

 

#

Total revenues

 

30

 

(7

)

(9

)

(11

)

21

 

30

 

21

 

(9

)

(30

)%

(9

)

(30

)%

32

 

 

#

Banking and deposit interest expense

 

1

 

(2

)

2

 

 

 

1

 

 

(1

)

 

#

(1

)

 

#

 

 

Total net revenues

 

29

 

(5

)

(11

)

(11

)

21

 

29

 

21

 

(8

)

(28

)%

(8

)

(28

)% 

32

 

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

1

 

1

 

 

1

 

 

1

 

 

(1

)

 

#

(1

)

 

#

(1

)

 

#

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

26

 

28

 

45

 

28

 

24

 

26

 

24

 

(2

)

(8

)%

(2

)

(8

)%

(4

)

(14

)%

General and administrative expense

 

26

 

32

 

39

 

40

 

26

 

26

 

26

 

 

 

 

 

(14

)

(35

)%

Total expenses

 

53

 

61

 

84

 

69

 

50

 

53

 

50

 

(3

)

(6

)%

(3

)

(6

)%

(19

)

(28

)%

Pretax segment (loss)

 

(24

)

(66

)

(95

)

(80

)

(29

)

(24

)

(29

)

(5

)

(21

)%

(5

)

(21

)%

51

 

64

%

Integration charges included in general and administrative expense (1)

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

Realized (gains) losses included in net investment income

 

 

(7

)

(2

)

9

 

(1

)

 

(1

)

(1

)

 

(1

)

 

(10

)

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings (loss) (2)

 

$

(24

)

$

(73

)

$

(93

)

$

(71

)

$

(30

)

$

(24

)

$

(30

)

$

(6

)

(25

)% 

$

(6

)

(25

)% 

$

41

 

58

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

 

$

 

$

1

 

$

 

$

3

 

$

 

$

3

 

$

3

 

 

$

3

 

 

$

3

 

 

Realized gains (losses)

 

 

7

 

2

 

(9

)

1

 

 

1

 

1

 

 

1

 

 

10

 

 

#

Affordable housing

 

(6

)

(7

)

(7

)

(5

)

(3

)

(6

)

(3

)

3

 

50

%

3

 

50

%

2

 

40

%

Other

 

(15

)

(15

)

(7

)

2

 

(1

)

(15

)

(1

)

14

 

93

%

14

 

93

%

(3

)

 

#

Total net investment income

 

$

(21

)

$

(15

)

$

(11

)

$

(12

)

$

 

$

(21

)

$

 

21

 

 

#

21

 

 

#

12

 

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

484

 

$

2,087

 

$

2,144

 

$

2,210

 

$

2,555

 

$

484

 

$

2,555

 

2,071

 

 

#

$

2,071

 

 

#

$

345

 

16

%

 


(1) Integration charges incurred for acquisition of Columbia

(2) See non-GAAP financial information on pages 38, and 45 - 49.

 

#  Variance of 100% or greater.

 

32



 

Ameriprise Financial, Inc.

Eliminations (1)

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

(23

)

$

(35

)

$

(31

)

$

(32

)

$

(41

)

$

(23

)

$

(41

)

$

(18

)

(78

)%

$

(18

)

(78

)%

$

(9

)

(28

)%

Distribution fees

 

(248

)

(208

)

(208

)

(209

)

(197

)

(248

)

(197

)

51

 

21

%

51

 

21

%

12

 

6

%

Net investment income

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

Premiums

 

(5

)

(8

)

(6

)

(7

)

(6

)

(5

)

(6

)

(1

)

(20

)%

(1

)

(20

)%

1

 

14

%

Other revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

(276

)

(251

)

(246

)

(248

)

(244

)

(276

)

(244

)

32

 

12

%

32

 

12

%

4

 

2

%

Banking and deposit interest expense

 

(1

)

 

 

(1

)

 

(1

)

 

1

 

 

#

1

 

 

#

1

 

 

#

Total net revenues

 

(275

)

(251

)

(246

)

(247

)

(244

)

(275

)

(244

)

31

 

11

%

31

 

11

%

3

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

(222

)

(187

)

(192

)

(192

)

(186

)

(222

)

(186

)

36

 

16

%

36

 

16

%

6

 

3

%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

(53

)

(64

)

(54

)

(55

)

(58

)

(53

)

(58

)

(5

)

(9

)%

(5

)

(9

)%

(3

)

(5

)%

Total expenses

 

(275

)

(251

)

(246

)

(247

)

(244

)

(275

)

(244

)

31

 

11

%

31

 

11

%

3

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment income (loss)

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

 


(1) The majority of the amounts represent the impact of inter-segment transfer pricing for both revenues and expenses.

 

#  Variance of 100% or greater.

 

33



 

GRAPHIC

 

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2010

 

 

Balance Sheet and Ratings Information

 

34



 

Ameriprise Financial, Inc.

Consolidated Balance Sheets

First Quarter 2010

 

(in millions, unaudited)

 

March 31, 2009

 

June 30, 2009

 

September 30, 2009

 

December 31, 2009

 

March 31, 2010

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

5,796

 

$

4,469

 

$

3,580

 

$

3,097

 

$

4,816

 

Investments

 

30,717

 

34,763

 

36,810

 

36,938

 

35,765

 

Separate account assets

 

42,014

 

48,661

 

55,576

 

58,129

 

60,326

 

Receivables

 

3,579

 

4,067

 

4,247

 

4,435

 

4,768

 

Deferred acquisition costs

 

4,237

 

4,361

 

4,323

 

4,334

 

4,243

 

Restricted and segregated cash

 

1,721

 

1,655

 

1,718

 

1,452

 

1,532

 

Other assets

 

6,124

 

4,779

 

4,299

 

4,290

 

4,011

 

Total Ameriprise Financial assets

 

94,188

 

102,755

 

110,553

 

112,675

 

115,461

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Investment Entities

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

90

 

75

 

104

 

181

 

613

 

Investments

 

21

 

30

 

37

 

36

 

5,349

 

Receivables

 

16

 

10

 

22

 

49

 

80

 

Other assets

 

266

 

344

 

485

 

833

 

874

 

Total Consolidated Investment Entities assets

 

393

 

459

 

648

 

1,099

 

6,916

 

Total Assets

 

$

94,581

 

$

103,214

 

$

111,201

 

$

113,774

 

$

122,377

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial

 

 

 

 

 

 

 

 

 

 

 

Future policy benefits and claims

 

$

30,956

 

$

30,916

 

$

31,042

 

$

30,886

 

$

30,866

 

Separate account liabilities

 

42,014

 

48,661

 

55,576

 

58,129

 

60,326

 

Customer deposits

 

8,465

 

9,216

 

9,028

 

8,554

 

8,632

 

Debt

 

1,850

 

2,318

 

1,868

 

1,868

 

2,612

 

Accounts payable and accrued expenses

 

713

 

825

 

765

 

918

 

748

 

Other liabilities

 

3,843

 

2,743

 

3,266

 

3,093

 

2,743

 

Total Ameriprise Financial liabilities

 

87,841

 

94,679

 

101,545

 

103,448

 

105,927

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Investment Entities

 

 

 

 

 

 

 

 

 

 

 

Debt

 

72

 

117

 

208

 

381

 

5,502

 

Accounts payable and accrued expenses

 

6

 

8

 

13

 

28

 

17

 

Other liabilities

 

25

 

36

 

41

 

41

 

231

 

Total Consolidated Investment Entities liabilities

 

103

 

161

 

262

 

450

 

5,750

 

Total Liabilities

 

$

87,944

 

$

94,840

 

$

101,807

 

$

103,898

 

$

111,677

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial

 

 

 

 

 

 

 

 

 

 

 

Common shares ($.01 par)

 

3

 

3

 

3

 

3

 

3

 

Additional paid-in capital

 

4,719

 

5,641

 

5,699

 

5,748

 

5,819

 

Retained earnings

 

4,817

 

4,875

 

5,091

 

5,282

 

5,451

 

Appropriated retained earnings of consolidated investment entities

 

 

 

 

 

508

 

Treasury stock

 

(2,021

)

(2,021

)

(2,021

)

(2,023

)

(2,038

)

Accumulated other comprehensive income (loss), net of tax

 

(1,134

)

(388

)

277

 

263

 

365

 

Total Ameriprise Financial shareholders’ equity

 

6,384

 

8,110

 

9,049

 

9,273

 

10,108

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests

 

253

 

264

 

345

 

603

 

592

 

Total Equity

 

6,637

 

8,374

 

9,394

 

9,876

 

10,700

 

Total Liabilities and Shareholders’ Equity

 

$

94,581

 

$

103,214

 

$

111,201

 

$

113,774

 

$

122,377

 

 

35



 

Ameriprise Financial, Inc.

Capital and Ratings Information

First Quarter 2010

 

(in millions unless otherwise noted, unaudited)

 

March 31, 2009

 

June 30, 2009

 

September 30, 2009

 

December 31, 2009

 

March 31, 2010

 

Debt Summary

 

 

 

 

 

 

 

 

 

 

 

Senior notes

 

$

1,500

 

$

1,990

 

$

1,540

 

$

1,540

 

$

2,284

 

Junior subordinated notes

 

344

 

322

 

322

 

322

 

322

 

Non-recourse debt for inverse floaters

 

6

 

6

 

6

 

6

 

6

 

Total Ameriprise Financial debt

 

1,850

 

2,318

 

1,868

 

1,868

 

2,612

 

Non-recourse debt of consolidated investment entities

 

72

 

117

 

208

 

381

 

5,502

 

Total debt

 

$

1,922

 

$

2,435

 

$

2,076

 

$

2,249

 

$

8,114

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt

 

$

1,922

 

$

2,435

 

$

2,076

 

$

2,249

 

$

8,114

 

Total non-recourse debt

 

(78

)

(123

)

(214

)

(387

)

(5,508

)

Total debt excluding non-recourse debt (1)

 

1,844

 

2,312

 

1,862

 

1,862

 

2,606

 

Junior subordinated notes 75% equity credit (2)

 

(258

)

(242

)

(242

)

(242

)

(242

)

Total debt excluding non-recourse debt and 75% equity credit (1)

 

$

1,586

 

$

2,070

 

$

1,620

 

$

1,620

 

$

2,364

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Equity

 

$

6,637

 

$

8,374

 

$

9,394

 

$

9,876

 

$

10,700

 

Noncontrolling interests

 

(253

)

(264

)

(345

)

(603

)

(592

)

Total Ameriprise Financial shareholders’ equity

 

6,384

 

8,110

 

9,049

 

9,273

 

10,108

 

Equity of consolidated investment entities

 

 

 

 

 

(482

)

Total equity excluding CIEs (1)

 

$

6,384

 

$

8,110

 

$

9,049

 

$

9,273

 

$

9,626

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial capital

 

8,234

 

10,428

 

10,917

 

11,141

 

12,720

 

Total capital excluding non-recourse debt and equity of CIEs (1)

 

8,228

 

10,422

 

10,911

 

11,135

 

12,232

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to capital

 

 

 

 

 

 

 

 

 

 

 

Debt to total capital of Ameriprise Financial

 

22.5

%

22.2

%

17.1

%

16.8

%

20.5

%

Debt to total capital excluding non-recourse debt and equity of CIEs (1)

 

22.4

%

22.2

%

17.1

%

16.7

%

21.3

%

Debt to total capital excluding non-recourse debt and equity of CIEs and 75% equity credit (1)

 

19.3

%

19.9

%

14.8

%

14.5

%

19.3

%

 

Ratings (as of March 31, 2010 earnings release date)

 

A.M. Best
Company

 

Standard & Poor’s Rating
Services

 

Moody’s Investors
Service, Inc.

 

Fitch Ratings
Ltd.

 

Claims Paying Ratings (3)

 

 

 

 

 

 

 

 

 

RiverSource Life Insurance Company

 

A+

 

AA-

 

Aa3

 

AA-

 

IDS Property Casualty Ins. Company

 

A

 

N/R

 

N/R

 

N/R

 

 

 

 

 

 

 

 

 

 

 

Debt Ratings (3)

 

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

 

a-

 

A

 

A3

 

A-

 

 


(1)    See non-GAAP financial information on pages 38, and 45 - 49.

(2)    The Company’s junior subordinated notes receive an equity credit of at least 75% by the majority of rating agencies.

(3)    For the most current ratings information, please see the individual rating agency’s website.

 

36



 

Ameriprise Financial, Inc.

Ameriprise Financial Investments (1)

First Quarter 2010

 

(in millions unless otherwise noted, unaudited)

 

March 31, 2009

 

June 30, 2009

 

September 30, 2009

 

December 31, 2009

 

March 31, 2010

 

Cash and cash equivalents

 

$

5,796

 

$

4,469

 

$

3,580

 

$

3,097

 

$

4,816

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments - Ending Balances

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale Securities

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

12,969

 

15,016

 

16,487

 

16,123

 

15,629

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage backed securities

 

6,720

 

7,434

 

8,049

 

7,770

 

7,317

 

Commercial mortgage backed securities

 

3,438

 

4,056

 

4,373

 

4,613

 

4,467

 

Asset backed securities

 

1,305

 

1,909

 

1,846

 

1,994

 

1,968

 

Total mortgage and other asset backed securities

 

11,463

 

13,399

 

14,268

 

14,377

 

13,752

 

 

 

 

 

 

 

 

 

 

 

 

 

Other structured investments

 

38

 

49

 

55

 

58

 

 

State and municipal obligations

 

947

 

1,089

 

1,322

 

1,417

 

1,569

 

US government and agencies obligations

 

188

 

185

 

312

 

387

 

229

 

Foreign government bonds and obligations

 

105

 

106

 

109

 

108

 

108

 

Common and preferred stocks

 

23

 

39

 

48

 

43

 

50

 

Other AFS

 

29

 

28

 

24

 

33

 

77

 

Total other

 

1,330

 

1,496

 

1,870

 

2,046

 

2,033

 

Total available-for-sale securities

 

25,762

 

29,911

 

32,625

 

32,546

 

31,414

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage loans

 

2,871

 

2,786

 

2,735

 

2,695

 

2,682

 

Allowance for loan losses

 

(19

)

(28

)

(29

)

(32

)

(39

)

Commercial mortgage loans, net

 

2,852

 

2,758

 

2,706

 

2,663

 

2,643

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy loans

 

722

 

715

 

719

 

720

 

720

 

Trading securities

 

853

 

874

 

276

 

556

 

544

 

Other investments

 

528

 

505

 

484

 

453

 

444

 

Total investments

 

30,717

 

34,763

 

36,810

 

36,938

 

35,765

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash, cash equivalents and investments

 

$

36,513

 

$

39,232

 

$

40,390

 

$

40,035

 

$

40,581

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gain (loss) Available-for-Sale Securities

 

$

(1,822

)

$

(577

)

$

799

 

$

686

 

$

1,031

 

 

 

 

 

 

 

 

 

 

 

 

 

AFS Fixed Maturity Asset Quality - %

 

 

 

 

 

 

 

 

 

 

 

AAA

 

42

%

42

%

41

%

41

%

41

%

AA

 

6

%

4

%

4

%

5

%

5

%

AFS securities AA and above

 

48

%

46

%

45

%

46

%

46

%

A

 

15

%

13

%

16

%

15

%

15

%

BBB

 

31

%

34

%

33

%

33

%

34

%

Below investment grade

 

6

%

7

%

6

%

6

%

5

%

Total AFS fixed maturity asset quality - %

 

100

%

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value of Below Investment Grade as a % of Total cash and investments

 

6

%

7

%

6

%

5

%

5

%

 


(1)             Investments excluding investments of CIEs

 

37



 

Ameriprise Financial, Inc.

 

Non-GAAP Financial Information

 

Ameriprise Financial, Inc. (the Company) follows accounting principles generally accepted in the United States (U.S. GAAP).  This report includes information on both a U.S. GAAP and non-GAAP basis.  Effective January 1, 2010, in accordance with the adoption of a new accounting standard, the Company consolidated $5.8 billion of client assets and $6.1 billion of liabilities in variable interest entities (“VIEs”).  Prior to adoption, the Company consolidated certain property funds and hedge funds (Consolidated Managed Funds). These entities and the VIEs are defined as Consolidated Investment Entities (“CIEs”).

 

This report contains certain non-GAAP measures, which our management views as important indicators of financial performance. These non-GAAP measures include:

 

· Return on equity excluding AOCI;

· Ameriprise Financial’s shareholders’ equity excluding AOCI;

· Ameriprise Financial’s shareholders’ equity excluding AOCI/outstanding shares;

· Ameriprise Financial’s shareholders’ equity excluding CIEs;

· Ameriprise Financial’s shareholders’ equity excluding CIEs and AOCI;

· Ameriprise Financial’s shareholders’ equity excluding CIEs and AOCI/outstanding shares;

· Debt to total capital excluding non-recourse debt and equity or CIEs;

· Pretax operating earnings (loss);

· Pretax operating earnings;

· Pretax operating (loss);

· Pretax operating margin;

· Return on allocated equity;

· Operating return on allocated equity;

· Total equity excluding CIEs;

· Debt to total capital excluding non-recourse debt and equity of CIEs and 75% equity credit;

· Total debt excluding non-recourse debt;

· Total debt excluding non-recourse debt and 75% equity credit;

· Total capital excluding CIEs;

· Total capital excluding non-recourse debt and equity of CIEs;

· Debt to capital excluding non-recourse debt and equity of CIEs;

· Debt to capital excluding non-recourse debt and equity of CIEs and 75% equity credit;

· Basic operating earnings per share;

· Operating earnings per diluted share;

· Operating revenue;

· Operating margin;

 

Management believes that the presentation of these non-GAAP financial measures excluding these specific income statement impacts best reflects the underlying performance of the Company’s ongoing operations and facilitates a more meaningful trend analysis.  See the reconciliations on pages 45 - 49.

 

Reclassification

Certain prior period information has been restated to conform to current period presentation.

 

38



 

Ameriprise Financial, Inc.

Glossary of Selected Terminology - Segments

 

Advice & Wealth Management - This segment provides financial planning and advice, as well as full service brokerage and banking services, primarily to retail clients through our financial advisors. Our affiliated financial advisors utilize a diversified selection of both proprietary and non-proprietary products to help clients meet their financial needs. A significant portion of revenues in this segment is fee-based, driven by the level of client assets, which is impacted by both market movements and net asset flows. We also earn net investment income on owned assets from primarily certificate and banking products. This segment earns revenues (distribution fees) for distributing non-proprietary products and earns intersegment revenues (distribution fees) for distributing our proprietary products and services to our retail clients. Intersegment expenses for this segment include expenses for investment management services provided by our Asset Management segment.

 

Asset Management - This segment provides investment advice and investment products to retail and institutional clients. RiverSource Investments predominantly provides U.S. domestic products and services and Threadneedle Asset Management Holdings Sàrl (Threadneedle) predominantly provides international investment products and services. U.S. Domestic retail products are primarily distributed through our Advice & Wealth Management segment and also through unaffiliated advisors. International retail products are primarily distributed through third parties. Retail products include mutual funds, variable product funds underlying insurance and annuity separate accounts, separately managed accounts and collective funds. Asset Management products are also distributed directly to institutions through an institutional sales force. Institutional asset management products include traditional asset classes, separate accounts, collateralized loan obligations, hedge funds and property funds. Revenues in this segment are primarily earned as fees based on managed asset balances, which are impacted by both market movements and net asset flows. This segment earns intersegment revenue for investment management services. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management, Annuities and Protection segments.

 

Annuities - This segment provides variable and fixed annuity products of RiverSource Life companies to retail clients primarily distributed through our affiliated financial advisors and to the retail clients of unaffiliated distributors through third-party distribution. Revenues for our variable annuity products are primarily earned as fees based on underlying account balances, which are impacted by both market movements and net asset flows. Revenues for our fixed annuity products are primarily earned as net investment income on assets supporting fixed account balances, with profitability significantly impacted by the spread between net investment income earned and interest credited on the fixed account balances. We also earn net investment income on owned assets supporting reserves for immediate annuities and for certain guaranteed benefits offered with variable annuities and on capital supporting the business. Intersegment revenues for this segment reflect fees paid by our Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource Funds under the variable annuity contracts. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management segment, as well as expenses for investment management services provided by our Asset Management segment.

 

Protection - This segment offers a variety of protection products to address the identified protection and risk management needs of our retail clients including life, disability income and property-casualty insurance. Life and disability income products are primarily distributed through our branded advisors. Our property-casualty products are sold direct, primarily through affinity relationships. We issue insurance policies through our life insurance subsidiaries and property casualty companies. The primary sources of revenues for this segment are premiums, fees, and charges that we receive to assume insurance-related risk. We earn net investment income on owned assets supporting insurance reserves and capital supporting the business. We also receive fees based on the level of assets supporting variable universal life separate account balances. This segment earns intersegment revenues from fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource Funds under the variable universal life contracts. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management segment, as well as expenses for investment management services provided by our Asset Management segment.

 

Corporate & Other - This segment consists of net investment income on corporate level assets, including excess capital held in our subsidiaries and other unallocated equity and other revenues from various investments as well as unallocated corporate expenses.

 

39



 

Ameriprise Financial, Inc.

Glossary of Selected Terminology

 

Administered Assets - Administered assets include assets for which we provide administrative services such as client assets invested in other companies’ products that we offer outside of our wrap accounts. These assets include those held in clients’ brokerage accounts. We do not exercise management discretion over these assets and do not earn a management fee. These assets are not reported on our Consolidated Balance Sheets.

 

Alternative Assets - Assets reported by the Company that include Hedge Funds and Collateralized Debt Obligations (“CDO”).

 

Allocated Equity - The internal allocation of consolidated Ameriprise Financial shareholders’ equity, excluding accumulated other comprehensive income (loss) is based on management’s best estimate of capital required by the business, and may include capital for contingences.  Equity is allocated to our operating segments for purposes of measuring segment return on allocated equity.  Allocated equity does not represent insurance company risk-based capital or other regulatory capital requirements applicable to us and certain of our subsidiaries.  For the Corporate & Other segment, allocated equity also includes any equity available after equity has been allocated to the operating segments.

 

Ameriprise Financial - Ameriprise Financial includes ownership interests in subsidiaries that are attributable, directly or indirectly, to Ameriprise Financial, Inc. and excludes noncontrolling interests.

 

AOCI - Accumulated other comprehensive income (loss), net of tax.  See FAS 115 explanation below.

 

Auto & Home Insurance - Personal auto and home protection products marketed directly to customers through marketing affiliates such as Costco Wholesale Corporation and Ford Motor Credit Company. We sell these products through our auto and home subsidiary, IDS Property Casualty Insurance Company (doing business as Ameriprise Auto & Home Insurance).

 

Book Value per Share - Total Ameriprise Financial shareholders’ equity divided by the number of basic common shares outstanding at period-end.

 

Cash Sales - Cash sales are the dollar value volume indicator that captures gross new cash inflows which generate product revenue streams to our company. This includes primarily “client initiated” activity that results in an incremental increase in assets (owned, managed or administered), or premiums in force (but doesn’t need to result in time of sale revenue), or activity that doesn’t increase assets or premiums in force, but generates “fee revenue”.

 

Debt to Total Capital Ratio - A ratio comprised of total debt divided by Total Capital. We also present debt to capital ratios excluding non-recourse debt of structured entities consolidated in accordance with FIN 46(R),  EITF 04-5 and other accounting literature and a 75% equity credit for our junior subordinated debt.

 

Deferred Acquisition Costs and Amortization - Deferred acquisition costs (“DAC”) represent the costs of acquiring new protection, annuity and certain mutual fund business, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of annuity, life, disability income and long term care insurance and, to a lesser extent, deferred marketing and promotion expenses on auto and home insurance and deferred distribution costs on certain mutual fund products. These costs are deferred to the extent they are recoverable from future profits.

 

FAS 115 - We record unrealized securities gains (losses) in accumulated other comprehensive income (loss), net of income tax provision (benefit) and net of adjustments in other asset and liability balances, such as DAC, to reflect the expected impact on their carrying values had the unrealized securities gains (losses) been realized as of the respective balance sheet dates.

 

Financial Planning Penetration - The period-end number of current clients who have received a financial plan, or have entered into an agreement to receive and have paid for a financial plan, divided by the number of active retail client groups, serviced by branded financial advisors.

 

Life Insurance in Force - The total amount of all life insurance death benefits currently insured by our company.

 

Managed Assets External Client - Managed external client assets include client assets for which we provide investment management services, such as the assets of the RiverSource and Seligman families of mutual funds, assets of institutional clients and client assets held in wrap accounts (retail accounts for which we receive an advice fee based on assets held in the account).  Managed external client assets also include assets managed by sub-advisors selected by us. Managed external client assets are not reported on our Consolidated Balance Sheets.

 

Managed Assets Owned - Managed owned assets include certain assets on our Consolidated Balance Sheets for which we provide investment management services and recognize management fees, such as the assets of the general account and RiverSource Variable Product funds held in the separate accounts of our life insurance subsidiaries.

 

Net Amount at Risk - Life insurance in force less policyholder reserves net of re-insurance.

 

Net Flows - Sales less redemptions and miscellaneous flows which may include reinvested dividends.

 

Net Income (Loss) Margin - A ratio representing net income as a percentage of total net revenues.

 

Owned Assets - Owned assets include certain assets on our Consolidated Balance Sheets for which we do not provide investment management services and do not recognize management fees, such as investments in non-proprietary funds held in the separate accounts of our life insurance subsidiaries, as well as restricted and segregated cash and receivables.

 

Pretax Segment Income (Loss) or Pretax Income (Loss) - Income (loss) before net income (loss) attributable to noncontrolling interests and income tax provision (benefit).

 

Pretax Segment Margin or Pretax Income (Loss) Margin - A ratio representing pretax income (loss) or pretax segment income (loss) as a percentage of total net revenues.

 

Pretax Operating Earnings - Pretax segment income (loss) plus or minus net realized gains (losses), plus integration charges.

 

Pretax Operating Margin - A ratio representing pretax operating earnings as a percentage of total net revenues.

 

Return on Allocated Equity - Calculated using net income (loss) subject to statutory tax rate of 35% for the last twelve months and the average allocated equity as of the last day of the trailing four quarters and current quarter end.

 

Securities America - Securities America, Inc. (“SAI”) is a registered broker-dealer and an insurance agency.

 

Separate Account - Represent assets and liabilities that are maintained and established primarily for the purpose of funding variable annuity and insurance products. The assets of the separate account are only available to fund the liabilities of the variable entity contract holders and others with contracts requiring premiums or other deposits to the separate account. Clients elect to invest premiums in stock, bond and/or money market funds depending on their risk tolerance. All investment performance, net of fees, is passed through to the client.

 

Third Party Distribution - Distribution of RiverSource products, which include a variety of equity and fixed income mutual funds, annuities and insurance products, to retail clients through unaffiliated financial institutions and broker-dealers.  The Third Party channel is separate from the Branded Advisor, Threadneedle, SAFC, and Institutional sales channels.

 

Threadneedle - Threadneedle Asset Management Holdings Sarl is a holding company for the London-based Threadneedle companies, which provide investment management products and services.

 

Total Capital - Total Ameriprise Financial shareholders’ equity plus total debt. Total capital is also presented excluding non-recourse debt.

 

Wrap Accounts - Wrap accounts enable our clients to purchase other securities such as mutual funds in connection with investment advisory fee-based “wrap account” programs or services. We offer clients the opportunity to select products that include proprietary and non-proprietary funds. We currently offer both discretionary and non-discretionary investment advisory wrap accounts. In a discretionary wrap account, an unaffiliated investment advisor or our investment management subsidiary, RiverSource Investments, LLC chooses the underlying investments in the portfolio on behalf of the client. In a non-discretionary wrap account, the client chooses the underlying investments in the portfolio based, to the extent the client elects, in part or whole on the recommendations of their financial advisor. Investors in our wrap accounts generally pay an asset-based fee based on the assets held in their wrap accounts. These investors also pay any related fees or costs included in the underlying securities held in that account, such as underlying mutual fund operating expenses and Rule 12b-1 fees.

 

40



 

Exhibit A

 

GRAPHIC

 

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2010

 

 

Disclosed Items

 

41



 

Ameriprise Financial, Inc.

Disclosed Items

Included in Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

 

 

Asset
Management

 

Corporate

 

Asset
Management

 

Corporate

 

Asset
Management

 

Annuities

 

Protection

 

Corporate

 

Asset
Management

 

Protection

 

Corporate

 

Advice &
Wealth
Management

 

Asset
Management

 

Annuities

 

Corporate

 

 

 

 

 

Jr. Subordinated

 

 

 

 

 

Jr. Subordinated

 

 

 

 

 

 

 

 

 

Debt

 

Hedge Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle

 

Notes

 

Legal

 

Legal

 

Notes

 

Legal

 

Valuation

 

Valuation

 

RiverSource

 

Retirement

 

Performance

 

Reserve

 

Legal

 

Reserve

 

Threadneedle

 

VA Cash

 

Reserve

 

(in millions, unaudited)

 

Valuation (8)

 

Repurchase (1)

 

Expenses (2)

 

Expenses (2)

 

Repurchase (1)

 

Expenses (2)

 

Assumptions (3)

 

Assumptions (3)

 

2a-7 Fund (4)

 

Costs (5)

 

Fees (6)

 

Increase (7)

 

Expenses (2)

 

Fund (9)

 

Valuation (8)

 

Impact (10)

 

Fund (9)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

*

 

$

 

$

 

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

(5

)

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

50

 

 

 

8

 

 

 

(65

)

 

 

 

 

 

 

 

 

20

 

Total revenues

 

 

50

 

 

 

8

 

 

 

(65

)

 

 

 

 

 

2

 

 

(5

)

20

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

 

50

 

 

 

8

 

 

 

(65

)

 

 

 

 

 

2

 

 

(5

)

20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

(47

)

(33

)

 

 

 

14

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

(64

)

(55

)

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

13

 

 

 

 

 

 

 

 

General and administrative expense

 

(10

)

 

16

 

7

 

 

10

 

 

 

10

 

 

*

 

 

19

 

 

27

 

 

 

Total expenses

 

(10

)

 

16

 

7

 

 

10

 

(111

)

(88

)

10

 

13

 

 

14

 

19

 

 

27

 

 

 

Pretax segment income (loss)

 

10

 

50

 

(16

)

(7

)

8

 

(10

)

111

 

23

 

(10

)

(13

)

 

(14

)

(19

)

2

 

(27

)

(5

)

20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment gain (loss) excluding net loss attributable to noncontrolling interest

 

$

10

 

$

50

 

$

(16

)

$

(7

)

$

8

 

$

(10

)

$

111

 

$

23

 

$

(10

)

$

(13

)

$

30

 

$

(14

)

$

(19

)

$

2

 

$

(27

)

$

(5

)

$

20

 

 


(1)     Gain on the repurchase of certain junior subordinated notes

(2)     Increase in legal expenses related to a previously disclosed client mediation

(3)     Net impact of annual review/updating of valuation assumptions

(4)     Expenses to support $1 Net Asset Value of RiverSource money market funds

(5)     Costs related to the early retirement of $450 million of the company’s notes due in 2010

(6)     The company has chosen not to disclose the gross revenue and expense amounts for competitive reasons, but instead has shown the net PTI impact

(7)     Increase in VUL/UL reserves related to modeling assumptions

(8)     Impact related to Threadneedle’s estimated change in market valuation attributable to its employee incentive compensation program

(9)     Benefit from payments by the Reserve Fund

(10)   Impact from raising cash in preparation for the introduction of enhanced variable annuity features

 


 

 


 

Ameriprise Financial, Inc.

Previously Disclosed Items

Market Impacts

 

Annuities Segment (1) (2)

 

(in millions, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

Revenues

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

Net investment income

 

 

 

 

 

Premiums

 

 

 

 

 

Other revenues

 

 

 

 

 

Total revenues

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

Total net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

(194

)

285

 

48

 

5

 

Amortization of deferred acquisition costs

 

181

 

(239

)

(75

)

(3

)

Interest and debt expense

 

 

 

 

 

General and administrative expense

 

 

 

 

 

Total expenses

 

(13

)

46

 

(27

)

2

 

Pretax segment income (loss)

 

13

 

(46

)

27

 

(2

)

Less: Net loss attributable to noncontrolling interest

 

 

 

 

 

Pretax segment gain (loss) excluding net loss attributable to noncontrolling interest

 

$

13

 

$

(46

)

$

27

 

$

(2

)

 

Protection Segment (2)

 

(in millions, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

Revenues

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

Net investment income

 

 

 

 

 

Premiums

 

 

 

 

 

Other revenues

 

 

 

 

 

Total revenues

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

Total net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

Amortization of deferred acquisition costs

 

5

 

(6

)

(1

)

(1

)

Interest and debt expense

 

 

 

 

 

General and administrative expense

 

 

 

 

 

Total expenses

 

5

 

(6

)

(1

)

(1

)

Pretax segment income (loss)

 

(5

)

6

 

1

 

1

 

Less: Net loss attributable to noncontrolling interest

 

 

 

 

 

Pretax segment gain (loss) excluding net loss attributable to noncontrolling interest

 

$

(5

)

$

6

 

$

1

 

$

1

 

 


(1) Variable annuity guarantee impacts

(2) Increase in DAC and DSIC amortization related to market

 

43



 

Exhibit B

 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2010

 

 

GAAP Excluding Consolidated Investment Entities Reconciliation Tables

 

44



 

Ameriprise Financial, Inc.

Reconciliation for Revenues Excluding CIEs

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

554

 

$

606

 

$

689

 

$

855

 

$

774

 

$

554

 

$

774

 

CIEs

 

 

(1

)

 

(1

)

(9

)

 

(9

)

Management and financial advice fees excluding CIEs

 

$

554

 

$

607

 

$

689

 

$

856

 

$

783

 

$

554

 

$

783

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution fees

 

$

311

 

$

351

 

$

367

 

$

391

 

$

391

 

$

311

 

$

391

 

CIEs

 

 

 

 

 

 

 

 

Distribution fees excluding CIEs

 

$

311

 

$

351

 

$

367

 

$

391

 

$

391

 

$

311

 

$

391

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

$

418

 

$

511

 

$

538

 

$

535

 

$

590

 

$

418

 

$

590

 

CIEs

 

1

 

1

 

(1

)

1

 

79

 

1

 

79

 

Net investment income excluding CIEs

 

$

417

 

$

510

 

$

539

 

$

534

 

$

511

 

$

417

 

$

511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums

 

$

266

 

$

269

 

$

276

 

$

287

 

$

282

 

$

266

 

$

282

 

CIEs

 

 

 

 

 

 

 

 

Premiums excluding CIEs

 

$

266

 

$

269

 

$

276

 

$

287

 

$

282

 

$

266

 

$

282

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

$

209

 

$

175

 

$

109

 

$

229

 

$

255

 

$

209

 

$

255

 

CIEs

 

(12

)

(7

)

4

 

43

 

57

 

(12

)

57

 

Other revenues excluding CIEs

 

$

221

 

$

182

 

$

105

 

$

186

 

$

198

 

$

221

 

$

198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

1,758

 

$

1,912

 

$

1,979

 

$

2,297

 

$

2,292

 

$

1,758

 

$

2,292

 

CIEs

 

(11

)

(7

)

3

 

43

 

127

 

(11

)

127

 

Total revenues excluding CIEs

 

$

1,769

 

$

1,919

 

$

1,976

 

$

2,254

 

$

2,165

 

$

1,769

 

$

2,165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banking and deposit interest expense

 

$

42

 

$

38

 

$

33

 

$

28

 

$

21

 

$

42

 

$

21

 

CIEs

 

1

 

1

 

1

 

3

 

 

1

 

 

Banking and deposit interest expense excluding CIEs

 

$

41

 

$

37

 

$

32

 

$

25

 

$

21

 

$

41

 

$

21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

$

1,716

 

$

1,874

 

$

1,946

 

$

2,269

 

$

2,271

 

$

1,716

 

$

2,271

 

CIEs

 

(12

)

(8

)

2

 

40

 

127

 

(12

)

127

 

Total net revenues excluding CIEs

 

$

1,728

 

$

1,882

 

$

1,944

 

$

2,229

 

$

2,144

 

$

1,728

 

$

2,144

 

 

45



 

Ameriprise Financial, Inc.

Reconciliation for Expenses Excluding CIEs

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

$

384

 

$

432

 

$

462

 

$

504

 

$

525

 

$

384

 

$

525

 

CIEs

 

 

 

 

 

 

 

 

Distribution expenses excluding CIEs

 

$

384

 

$

432

 

$

462

 

$

504

 

$

525

 

$

384

 

$

525

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

$

205

 

$

237

 

$

232

 

$

229

 

$

228

 

$

205

 

$

228

 

CIEs

 

 

 

 

 

 

 

 

Interest credited to fixed accounts excluding CIEs

 

$

205

 

$

237

 

$

232

 

$

229

 

$

228

 

$

205

 

$

228

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

$

100

 

$

587

 

$

306

 

$

349

 

$

354

 

$

100

 

$

354

 

CIEs

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses excluding CIEs

 

$

100

 

$

587

 

$

306

 

$

349

 

$

354

 

$

100

 

$

354

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

$

286

 

$

(125

)

$

(64

)

$

120

 

$

118

 

$

286

 

$

118

 

CIEs

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs excluding CIEs

 

$

286

 

$

(125

)

$

(64

)

$

120

 

$

118

 

$

286

 

$

118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

$

26

 

$

28

 

$

45

 

$

28

 

$

64

 

$

26

 

$

64

 

CIEs

 

 

 

 

 

40

 

 

40

 

Interest and debt expense excluding CIEs

 

$

26

 

$

28

 

$

45

 

$

28

 

$

24

 

$

26

 

$

24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

$

581

 

$

600

 

$

625

 

$

708

 

$

621

 

$

581

 

$

621

 

CIEs

 

2

 

 

2

 

3

 

5

 

2

 

5

 

General and administrative expense excluding CIEs

 

$

579

 

$

600

 

$

623

 

$

705

 

$

616

 

$

579

 

$

616

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses

 

$

1,582

 

$

1,759

 

$

1,606

 

$

1,938

 

$

1,910

 

$

1,582

 

$

1,910

 

CIEs

 

2

 

 

2

 

3

 

45

 

2

 

45

 

Total expenses excluding CIEs

 

$

1,580

 

$

1,759

 

$

1,604

 

$

1,935

 

$

1,865

 

$

1,580

 

$

1,865

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income (loss)

 

$

134

 

$

115

 

$

340

 

$

331

 

$

361

 

$

134

 

$

361

 

CIEs

 

(14

)

(8

)

 

37

 

82

 

(14

)

82

 

Pretax income (loss) excluding CIEs

 

$

148

 

$

123

 

$

340

 

$

294

 

$

279

 

$

148

 

$

279

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit)

 

$

18

 

$

28

 

$

80

 

$

57

 

$

65

 

$

18

 

$

65

 

CIEs

 

 

 

 

 

 

 

 

Income tax provision (benefit) excluding CIEs

 

$

18

 

$

28

 

$

80

 

$

57

 

$

65

 

$

18

 

$

65

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

116

 

$

87

 

$

260

 

$

274

 

$

296

 

$

116

 

$

296

 

CIEs

 

(14

)

(8

)

 

37

 

82

 

(14

)

82

 

Net income (loss) excluding CIEs

 

$

130

 

$

95

 

$

260

 

$

237

 

$

214

 

$

130

 

$

214

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to noncontrolling interests

 

$

(14

)

$

(8

)

$

 

$

37

 

$

82

 

$

(14

)

$

82

 

CIEs

 

(14

)

(8

)

 

37

 

82

 

(14

)

82

 

Net income (loss) attributable to noncontrolling interests excluding CIEs

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Ameriprise Financial

 

$

130

 

$

95

 

$

260

 

$

237

 

$

214

 

$

130

 

$

214

 

CIEs

 

 

 

 

 

 

 

 

Net income (loss) attributable to Ameriprise Financial excluding CIEs

 

$

130

 

$

95

 

$

260

 

$

237

 

$

214

 

$

130

 

$

214

 

 

46



 

Ameriprise Financial, Inc.

Reconciliation for GAAP Metrics Excluding CIEs

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2009

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

$

0.58

 

$

0.41

 

$

1.00

 

$

0.92

 

$

0.82

 

$

0.58

 

$

0.82

 

CIEs

 

 

 

 

 

 

 

 

Basic earnings (loss) per share excluding CIEs

 

$

0.58

 

$

0.41

 

$

1.00

 

$

0.92

 

$

0.82

 

$

0.58

 

$

0.82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per diluted share

 

$

0.58

 

$

0.41

 

$

1.00

 

$

0.90

 

$

0.81

 

$

0.58

 

$

0.81

 

CIEs

 

 

 

 

 

 

 

 

Earnings (loss) per diluted share excluding CIEs

 

$

0.58

 

$

0.41

 

$

1.00

 

$

0.90

 

$

0.81

 

$

0.58

 

$

0.81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue growth

 

(13.8

)%

(4.6

)%

19.7

%

70.0

%

32.3

%

(13.8

)%

32.3

%

CIEs

 

(0.5

)%

(0.2

)%

1.2

%

6.6

%

8.2

%

(0.5

)%

8.2

%

Net revenue growth excluding CIEs

 

(13.3

)%

(4.4

)%

18.5

%

63.4

%

24.1

%

(13.3

)%

24.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity excluding AOCI

 

(1.3

)%

(2.8

)%

1.5

%

8.8

%

9.3

%

(1.3

)%

9.3

%

CIEs

 

(6.6

)%

(6.5

)%

(3.8

)%

(0.4

)%

(0.4

)%

(6.6

)%

(0.4

)%

Return on equity excluding AOCI and CIEs

 

5.3

%

3.7

%

5.3

%

9.2

%

9.7

%

5.3

%

9.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per diluted share growth

 

(29.3

)%

(55.9

)%

NM

 

NM

 

39.7

%

(29.3

)%

39.7

%

CIEs

 

 

 

NM

 

NM

 

 

 

 

Earnings per diluted share growth excluding CIEs

 

(29.3

)%

(55.9

)%

NM

 

NM

 

39.7

%

(29.3

)%

39.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income (loss) margin

 

7.8

%

6.1

%

17.5

%

14.6

%

15.9

%

7.8

%

15.9

%

CIEs

 

(0.8

)%

(0.4

)%

 

1.4

%

2.9

%

(0.8

)%

2.9

%

Pretax income (loss) margin excluding CIEs

 

8.6

%

6.5

%

17.5

%

13.2

%

13.0

%

8.6

%

13.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Ameriprise Financial margin

 

7.6

%

5.1

%

13.4

%

10.4

%

9.4

%

7.6

%

9.4

%

CIEs

 

0.1

%

0.1

%

 

(0.2

)%

(0.6

)%

0.1

%

(0.6

)%

Net income (loss) attributable to Ameriprise Financial margin excluding CIEs

 

7.5

%

5.0

%

13.4

%

10.6

%

10.0

%

7.5

%

10.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

13.4

%

24.3

%

23.5

%

17.2

%

17.9

%

13.4

%

17.9

%

CIEs

 

1.2

%

1.5

%

 

(2.2

)%

(5.3

)%

1.2

%

(5.3

)%

Effective tax rate excluding CIEs

 

12.2

%

22.8

%

23.5

%

19.4

%

23.2

%

12.2

%

23.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial’s shareholders’ equity

 

$

6,384

 

$

8,110

 

$

9,049

 

$

9,273

 

$

10,108

 

$

6,384

 

$

10,108

 

CIEs

 

 

 

 

 

482

 

 

482

 

Ameriprise Financial’s shareholders’ equity excluding CIEs

 

$

6,384

 

$

8,110

 

$

9,049

 

$

9,273

 

$

9,626

 

$

6,384

 

$

9,626

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial’s shareholders’ equity excluding AOCI

 

$

7,518

 

$

8,498

 

$

8,772

 

$

9,010

 

$

9,743

 

$

7,518

 

$

9,743

 

CIEs

 

 

 

 

 

508

 

 

508

 

Ameriprise Financial’s shareholders’ equity excluding AOCI and CIEs

 

$

7,518

 

$

8,498

 

$

8,772

 

$

9,010

 

$

9,235

 

$

7,518

 

$

9,235

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial’s shareholders’ equity excluding AOCI / outstanding share

 

$

33.61

 

$

32.79

 

$

33.89

 

$

34.80

 

$

37.13

 

$

33.61

 

$

37.13

 

CIEs

 

 

 

 

 

1.94

 

 

1.94

 

Ameriprise Financial’s shareholders’ equity excluding AOCI and CIEs / outstanding share

 

$

33.61

 

$

32.79

 

$

33.89

 

$

34.80

 

$

35.19

 

$

33.61

 

$

35.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial’s shareholders’ equity excluding AOCI - 5 point avg.

 

$

7,637

 

$

7,763

 

$

7,950

 

$

8,214

 

$

8,708

 

$

7,637

 

$

8,708

 

CIEs

 

 

 

 

 

101

 

 

101

 

Ameriprise Financial’s shareholders’ equity excluding AOCI and CIEs - 5 point avg.

 

$

7,637

 

$

7,763

 

$

7,950

 

$

8,214

 

$

8,607

 

$

7,637

 

$

8,607

 

 

47



 

Ameriprise Financial, Inc.

Reconciliation of Consolidated GAAP Metrics to Operating Metrics

First Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Qtr 2009

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

(in millions unless otherwise noted, unaudited)

 

GAAP
Earnings

 

Less:
Adjustments
(1)

 

Operating
Earnings

 

GAAP Earnings

 

Less:
Adjustments
(1)

 

Operating
Earnings

 

GAAP Earnings

 

Less:
Adjustments
(1)

 

Operating
Earnings

 

GAAP Earnings

 

Less:
Adjustments
(1)

 

Operating
Earnings

 

GAAP
Earnings

 

Less:
Adjustments
(1)

 

Operating
Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

554

 

$

 

$

554

 

$

606

 

$

(1

)

$

607

 

$

689

 

$

 

$

689

 

$

855

 

$

(1

)

$

856

 

$

774

 

$

(9

)

$

783

 

Distribution fees

 

311

 

 

311

 

351

 

 

351

 

367

 

 

367

 

391

 

 

391

 

391

 

 

391

 

Net investment income

 

418

 

16

 

402

 

511

 

7

 

504

 

538

 

13

 

525

 

535

 

19

 

516

 

590

 

84

 

506

 

Premiums

 

266

 

 

266

 

269

 

 

269

 

276

 

 

276

 

287

 

 

287

 

282

 

 

282

 

Other revenues

 

209

 

(12

)

221

 

175

 

(7

)

182

 

109

 

4

 

105

 

229

 

43

 

186

 

255

 

57

 

198

 

Total revenues

 

1,758

 

4

 

1,754

 

1,912

 

(1

)

1,913

 

1,979

 

17

 

1,962

 

2,297

 

61

 

2,236

 

2,292

 

132

 

2,160

 

Banking and deposit interest expense

 

42

 

1

 

41

 

38

 

1

 

37

 

33

 

1

 

32

 

28

 

3

 

25

 

21

 

 

21

 

Total net revenues

 

1,716

 

3

 

1,713

 

1,874

 

(2

)

1,876

 

1,946

 

16

 

1,930

 

2,269

 

58

 

2,211

 

2,271

 

132

 

2,139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

384

 

 

384

 

432

 

 

432

 

462

 

 

462

 

504

 

 

504

 

525

 

 

525

 

Interest credited to fixed accounts

 

205

 

 

205

 

237

 

 

237

 

232

 

 

232

 

229

 

 

229

 

228

 

 

228

 

Benefits, claims, losses and settlement expenses

 

100

 

 

100

 

587

 

 

587

 

306

 

 

306

 

349

 

 

349

 

354

 

 

354

 

Amortization of deferred acquisition costs

 

286

 

 

286

 

(125

)

 

(125

)

(64

)

 

(64

)

120

 

 

120

 

118

 

 

118

 

Interest and debt expense

 

26

 

 

26

 

28

 

 

28

 

45

 

 

45

 

28

 

 

28

 

64

 

40

 

24

 

General and administrative expense

 

581

 

21

 

560

 

600

 

25

 

575

 

625

 

34

 

591

 

708

 

25

 

683

 

621

 

12

 

609

 

Total expenses

 

1,582

 

21

 

1,561

 

1,759

 

25

 

1,734

 

1,606

 

34

 

1,572

 

1,938

 

25

 

1,913

 

1,910

 

52

 

1,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

134

 

(18

)

152

 

115

 

(27

)

142

 

340

 

(18

)

358

 

331

 

33

 

298

 

361

 

80

 

281

 

Income tax provision

 

18

 

(1

)

19

 

28

 

 

28

 

80

 

(6

)

86

 

57

 

(1

)

58

 

65

 

(1

)

66

 

Net income

 

116

 

(17

)

133

 

87

 

(27

)

114

 

260

 

(12

)

272

 

274

 

34

 

240

 

296

 

81

 

215

 

Less: Net income (loss) attributable to noncontrolling interests

 

(14

)

(14

)

 

(8

)

(15

)

7

 

 

 

 

37

 

37

 

 

82

 

82

 

 

Net income attributable to Ameriprise Financial

 

$

130

 

$

(3

)

$

133

 

$

95

 

$

(12

)

$

107

 

$

260

 

$

(12

)

$

272

 

$

237

 

$

(3

)

$

240

 

$

214

 

$

(1

)

$

215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.58

 

 

 

$

0.60

 

$

0.41

 

 

 

$

0.47

 

$

1.00

 

 

 

$

1.05

 

$

0.92

 

 

 

$

0.93

 

$

0.82

 

 

 

$

0.83

 

Operating earnings per diluted share

 

$

0.58

 

 

 

$

0.60

 

$

0.41

 

 

 

$

0.47

 

$

1.00

 

 

 

$

1.04

 

$

0.90

 

 

 

$

0.91

 

$

0.81

 

 

 

$

0.81

 

Operating earnings per diluted share growth

 

(29.3

)%

 

 

(32.6

)%

(55.9

)%

 

 

(53.5

)%

NM

 

 

 

70.5

%

NM

 

 

 

NM

 

39.7

%

 

 

35.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue growth

 

(13.8

)%

 

 

(15.1

)%

(4.6

)%

 

 

(6.0

)%

19.7

%

 

 

(1.4

)%

70.0

%

 

 

24.7

%

32.3

%

 

 

24.9

%

Return on equity excluding AOCI

 

(1.3

)%

 

 

5.3

%

(2.8

)%

 

 

3.7

%

1.5

%

 

 

5.3

%

8.8

%

 

 

9.2

%

9.3

%

 

 

9.7

%

Pretax margin

 

7.8

%

 

 

8.8

%

6.1

%

 

 

7.5

%

17.5

%

 

 

18.4

%

14.6

%

 

 

13.4

%

15.9

%

 

 

13.1

%

Operating margin

 

7.6

%

 

 

7.8

%

5.1

%

 

 

5.7

%

13.4

%

 

 

14.1

%

10.4

%

 

 

10.9

%

9.4

%

 

 

10.1

%

 


(1)    Includes the elimination of management fees earned by the Company from the consolidated investment entities and the related expense, the revenues and expenses of the consolidated investment entities, net realized gains/losses and integration charges.

 

48



 

Ameriprise Financial, Inc.

Reconciliation of Consolidated GAAP Metrics to Operating Metrics

First Quarter 2010

 

 

 

Year-to-Date 2009

 

Year-to-Date 2010

 

(in millions unless otherwise noted, unaudited)

 

GAAP
Earnings

 

Less:
Adjustments
(1)

 

Operating
Earnings

 

GAAP
Earnings

 

Less:
Adjustments
(1)

 

Operating
Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

554

 

$

 

$

554

 

$

774

 

$

(9

)

$

783

 

Distribution fees

 

311

 

 

311

 

391

 

 

391

 

Net investment income

 

418

 

16

 

402

 

590

 

84

 

506

 

Premiums

 

266

 

 

266

 

282

 

 

282

 

Other revenues

 

209

 

(12

)

221

 

255

 

57

 

198

 

Total revenues

 

1,758

 

4

 

1,754

 

2,292

 

132

 

2,160

 

Banking and deposit interest expense

 

42

 

1

 

41

 

21

 

 

21

 

Total net revenues

 

1,716

 

3

 

1,713

 

2,271

 

132

 

2,139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

384

 

 

384

 

525

 

 

525

 

Interest credited to fixed accounts

 

205

 

 

205

 

228

 

 

228

 

Benefits, claims, losses and settlement expenses

 

100

 

 

100

 

354

 

 

354

 

Amortization of deferred acquisition costs

 

286

 

 

286

 

118

 

 

118

 

Interest and debt expense

 

26

 

 

26

 

64

 

40

 

24

 

General and administrative expense

 

581

 

21

 

560

 

621

 

12

 

609

 

Total expenses

 

1,582

 

21

 

1,561

 

1,910

 

52

 

1,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

134

 

(18

)

152

 

361

 

80

 

281

 

Income tax provision

 

18

 

(1

)

19

 

65

 

(1

)

66

 

Net income

 

116

 

(17

)

133

 

296

 

81

 

215

 

Less: Net income (loss) attributable to noncontrolling interests

 

(14

)

(14

)

 

82

 

82

 

 

Net income attributable to Ameriprise Financial

 

$

130

 

$

(3

)

$

133

 

$

214

 

$

(1

)

$

215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.58

 

 

 

$

0.60

 

$

0.82

 

 

 

$

0.83

 

Operating earnings per diluted share

 

$

0.58

 

 

 

$

0.60

 

$

0.81

 

 

 

$

0.81

 

Operating earnings per diluted share growth

 

(29.3

)%

 

 

(32.6

)%

39.7

%

 

 

35.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue growth

 

(13.8

)%

 

 

(15.1

)%

32.3

%

 

 

24.9

%

Return on equity excluding AOCI

 

1.3

%

 

 

5.3

%

9.3

%

 

 

9.7

%

Pretax margin

 

7.8

%

 

 

8.8

%

15.9

%

 

 

13.1

%

Operating margin

 

7.6

%

 

 

7.8

%

9.4

%

 

 

10.1

%

 


(1)    Includes the elimination of management fees earned by the Company from the consolidated investment entities and the related expense, the revenues and expenses of the consolidated investment entities, net realized gains/losses and integration charges.

 

49