-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Dds0rhqs2t9AgsT/tQ83tEaM9bIL/ImLmuGS4gY0NmECZch6un3oyIwLUo85Fd6t 4U9PG9Pcke9oH5Vpxou5iA== 0001104659-10-040168.txt : 20100728 0001104659-10-040168.hdr.sgml : 20100728 20100728161052 ACCESSION NUMBER: 0001104659-10-040168 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20100728 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20100728 DATE AS OF CHANGE: 20100728 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERIPRISE FINANCIAL INC CENTRAL INDEX KEY: 0000820027 STANDARD INDUSTRIAL CLASSIFICATION: INVESTMENT ADVICE [6282] IRS NUMBER: 133180631 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32525 FILM NUMBER: 10974487 BUSINESS ADDRESS: STREET 1: 1099 AMERIPRISE FINANCIAL CENTER CITY: MINNEAPOLIS STATE: MN ZIP: 55474 BUSINESS PHONE: 612-671-2018 MAIL ADDRESS: STREET 1: 1099 AMERIPRISE FINANCIAL CENTER CITY: MINNEAPOLIS STATE: MN ZIP: 55474 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN EXPRESS FINANCIAL CORP DATE OF NAME CHANGE: 20030513 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN EXPRESS FINANCIAL ADVISORS DATE OF NAME CHANGE: 19950711 FORMER COMPANY: FORMER CONFORMED NAME: IDS FINANCIAL CORP/MN/ DATE OF NAME CHANGE: 19920703 8-K 1 a10-14610_18k.htm 8-K

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported)             July 28, 2010

 

AMERIPRISE FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

001-32525

 

13-3180631

(State or other jurisdiction

 

(Commission

 

(IRS Employer

of incorporation)

 

File Number)

 

Identification No.)

 

55 Ameriprise Financial Center
Minneapolis, Minnesota

 

55474

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code   (612) 671-3131

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 2.02       Results of Operations and Financial Conditions.

 

On July 28, 2010, Ameriprise Financial, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter of 2010.  A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference and furnished herewith. In addition, the Company furnishes herewith, as Exhibit 99.2, its Statistical Supplement for the quarterly period ended June 30, 2010.

 

We follow accounting principles generally accepted in the United States (“GAAP”). The press release furnished as Exhibit 99.1 and the financial information furnished as Exhibit 99.2 include information on both a GAAP and non-GAAP adjusted basis.

 

Certain non-GAAP measures in these exhibits exclude the impact of consolidating certain investment entities (“CIEs”), as well as certain integration charges and realized gains (losses). Our non-GAAP financial measures, which our management views as important indicators of financial performance, include the following: Ameriprise Financial’s shareholders’ equity excluding AOCI; Ameriprise Financial’s shareholders’ equity excluding CIEs; Ameriprise Financial’s shareholders’ equity excluding CIEs and AOCI; basic operating earnings per share; debt to total capital excluding non-recourse debt and equity of CIEs; debt to total capital excluding non-recourse debt and equity of CIEs and 75% equity credit; integration charges, after-tax; net realized gains (losses), after-tax; operating earnings; operating earnings per diluted share; operating margin; operating net revenues; operating return on allocated equity; operating return on equity excluding AOCI; operating total net revenues; pretax income (loss) excluding CIEs; pretax operating earnings (loss); pretax operating margin; return on allocated equity; return on equity excluding AOCI; total capital excluding non-recourse debt and equity of CIEs; total equity excluding CIEs; total long-term debt excluding non-recourse debt; total long-term debt excluding non-recourse debt and 75% equity credit. Management believes that the presentation of these non-GAAP financial measures better reflects the underlying performance of our 2010 and 2009 core operations and facilitates a more meaningful trend analysis. Management uses certain of these non-GAAP measures to evaluate our financial performance on a basis comparable to that used by some securities analysts and investors. Also, certain of these non-GAAP measures are taken into consideration, to varying degrees, for purposes of business planning and analysis and for certain compensation-related matters.

 

We also present in Exhibits 99.1 and 99.2 certain non-GAAP debt, capital and shareholders’ equity measures, along with financial ratios incorporating such measures, that exclude amounts related to one or more of the following: accumulated other comprehensive income (loss), non-recourse debt, the impact of consolidating the assets of certain CIEs, property funds and hedge funds, and the recognition of an equity credit on our junior subordinated notes issued on May 26, 2006, which receive at least a 75% equity credit by the majority of the rating agencies.  Management believes that the debt, capital and shareholders’ equity measures, and the corresponding ratios, better represent our capital structure.

 

Item 9.01       Financial Statements and Exhibits.

 

(d)         Exhibits.

 

Exhibit No.

 

Description

 

 

 

Exhibit 99.1

 

Press Release dated July 28, 2010 announcing financial results for the second quarter of 2010

 

 

 

Exhibit 99.2

 

Statistical Supplement for the quarterly period ended June 30, 2010

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

AMERIPRISE FINANCIAL, INC.

 

 

(Registrant)

 

 

 

 

 

Date: July 28, 2010

By

/s/ Walter S. Berman

 

 

 

Walter S. Berman

 

 

 

Executive Vice President and
Chief Financial Officer

 

 

3


EX-99.1 2 a10-14610_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

Ameriprise Financial, Inc.

 

Ameriprise Financial Center

 

Minneapolis, MN 55474

 

 

News Release

 

Ameriprise Financial Reports
Second Quarter 2010 Results

 

Second quarter 2010 net income(1) of $259 million, up 173 percent,
or $0.98 per diluted share

 

Second quarter 2010 operating earnings were $291 million, up 172 percent,
or $1.10 per diluted share

 

Ameriprise Financial, Inc.
Second Quarter Results

 

(in millions, except per

 

 

 

 

 

 

 

Per Diluted Share

 

share amounts, unaudited)

 

2010

 

2009

 

% Change

 

2010

 

2009

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

$

2,577

 

$

1,874

 

38

%

 

 

 

 

 

 

Net income(1)

 

$

259

 

$

95

 

173

%

$

0.98

 

$

0.41

 

139

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating*

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

$

2,379

 

$

1,876

 

27

%

 

 

 

 

 

 

Earnings

 

$

291

 

$

107

 

172

%

$

1.10

 

$

0.47

 

134

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

261.1

 

228.8

 

 

 

 

 

 

 

 

 

Diluted

 

265.3

 

230.0

 

 

 

 

 

 

 

 

 

 


* Operating measures exclude net realized gains/losses, integration expenses and the impact of the adoption of a new accounting standard in 2010 that required the company to consolidate $6 billion of client assets in certain investment entities on its balance sheet and report related revenues and expenses through its income statement. Reconciliation tables of GAAP to operating results are included throughout this release.

 

MINNEAPOLIS — July 28, 2010 — Ameriprise Financial, Inc. (NYSE: AMP) today reported net income(1) of $259 million for the second quarter of 2010 compared to $95 million for the second quarter of 2009.  Net income per diluted share for the second quarter of 2010 was $0.98 compared to $0.41 a year ago.

 

Operating earnings increased 172 percent to $291 million in the second quarter of 2010 compared to $107 million a year ago.  Operating earnings per diluted share were $1.10 in the second quarter of 2010, up 134 percent from $0.47 a year ago.  Operating earnings reflected organic growth driven by higher asset-based revenues and re-engineering benefits as well as two months of earnings from the Columbia Management acquisition that closed on April 30, 2010. Strong operating earnings growth reflected continued margin improvement in Advice & Wealth Management and Asset Management.

 

(1)  Net income represents net income attributable to Ameriprise Financial.

 



 

Operating net revenues were $2.4 billion in the second quarter of 2010, up 27 percent from a year ago, driven primarily by growth in asset-based management fees and distribution fees resulting from higher asset levels and increased client activity.  Higher asset levels reflected market appreciation, the acquisition of Columbia Management and retail net inflows.  Excluding the acquisition, operating revenues grew 18 percent from a year ago.

 

As of June 30, 2010, the company’s excess capital position was more than $1.5 billion after deploying $220 million to repurchase 5.7 million shares of common stock during the quarter.  The company’s investment portfolio remained in a net unrealized gain position.  Excluding accumulated other comprehensive income (AOCI) and the equity impact of the required consolidation in certain investment entities, book value per share increased 10 percent from a year ago to $36.07.

 

Return on shareholders’ equity excluding AOCI was 10.6 percent for the 12 months ended June 30, 2010.  Operating return on equity was 11.4 percent for the same period.

 

“Our strong financial results for the quarter reflect the strength of our diversified business,” said Jim Cracchiolo, chairman and chief executive officer.  “Each of our segments performed well, led by stronger earnings in Advice & Wealth Management and Asset Management.  Client activity and advisor productivity continued to improve despite the on-going volatility in the markets.”

 

“The Columbia Management integration is on schedule and on budget.  We are focused on delivering consistent, competitive performance, retaining and growing our retail and institutional assets, and achieving our expectations for revenue growth and expense synergies.

 

“We continue to operate from a position of financial strength, with a high-quality balance sheet and substantial excess capital.  During the quarter, we began to return more capital to our shareholders by buying back $220 million of common stock.”

 

2



 

Summary

 

Ameriprise Financial, Inc.
Second Quarter Summary

 

(in millions, except per

 

 

 

 

 

 

 

Per Diluted Share

 

share amounts, unaudited)

 

2010

 

2009

 

% Change

 

2010

 

2009

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Ameriprise Financial

 

$

259

 

$

95

 

173

%

$

0.98

 

$

0.41

 

139

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Integration charges, after-tax(1)

 

37

 

16

 

131

%

0.14

 

0.07

 

100

%

Less: Net realized gains, after-tax(1)

 

5

 

4

 

25

%

0.02

 

0.01

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

 

$

291

 

$

107

 

172

%

$

1.10

 

$

0.47

 

134

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

261.1

 

228.8

 

 

 

 

 

 

 

 

 

Diluted

 

265.3

 

230.0

 

 

 

 

 

 

 

 

 

 


(1) After-tax is calculated using the statutory tax rate of 35%.

 

The company believes that operating measures, which exclude net realized gains or losses, integration charges and the impact of the consolidation of certain investment entities, best reflect the performance of the business.

 

Second quarter 2010 operating results demonstrated the strength of the business and included the following after-tax items:

 

·      $25 million or $0.09 per diluted share expense from accelerated deferred acquisition costs (DAC) and deferred sales inducement costs (DSIC) amortization driven by the equity market declines in the quarter.

 

·      $21 million or $0.08 per diluted share benefit from revising certain calculations in its valuation of DAC and DSIC.

 

·      $16 million or $0.06 per diluted share benefit from the mark-to-market valuation of hedged living benefits, primarily driven by the impact of credit spreads on the GAAP liability valuation, which the company does not hedge.

 

·      $5 million or $0.02 per diluted share expense from supporting the $1.00 net asset value of certain 2a-7 funds.

 

Taxes

 

The effective tax rate on net income excluding net income (loss) attributable to noncontrolling interests and the required consolidation of certain investment entities was 20.8 percent in the second quarter of 2010.  The company expects its full-year 2010 operating tax rate to be at the low end of the 25 to 27 percent range based on expected benefits from tax planning, a large portion of which have been realized in the first and second quarters of the year.

 

3



 

Second Quarter 2010 Business Highlights

 

·                  The company closed its acquisition of the long-term asset management business of Columbia Management on April 30, 2010.  The integration is progressing on schedule; operational and financial results are on track with expectations.

 

·                  Total owned, managed and administered assets were $600 billion at June 30, 2010, up 51 percent from a year ago, including $166 billion in acquired assets.  Excluding the acquisition, growth was driven by year-over-year market appreciation and retail net inflows.

 

·                  Total client assets increased 12 percent year-over-year reflecting market appreciation, retail net inflows and strong client and asset retention.

 

·                  Advisor productivity, measured as operating net revenue per advisor, increased 32 percent compared to a year ago, matching an all-time high.  Growth was primarily driven by higher asset-based fees as a result of year-over-year market appreciation and net inflows, improved client activity and the company’s focus on higher-producing advisors.

 

·                  Total advisors declined 7 percent from a year ago to 11,684, primarily due to the departure of low-producing advisors.  Franchise advisor retention rates remain strong.  The company continued to recruit experienced advisors, although at a slower rate than in 2009.

 

·                  Asset Management segment managed assets increased 93 percent to $413 billion largely due to the acquisition of Columbia Management and the year-over-year appreciation in the S&P 500.  In the second quarter of 2010, U.S. asset management reported approximately $4.6 billion in net outflows, primarily in lower-margin portfolios.  In addition, Threadneedle reported approximately $1.1 billion in net outflows in the quarter, primarily driven by Zurich-related outflows.

 

·                  Wrap assets increased 23 percent year-over-year to $97 billion due to net inflows and market appreciation.  In the second quarter of 2010, wrap net inflows of $2.2 billion were more than offset by market depreciation on assets.

 

·                  Total annuity net inflows remained positive with $199 million in variable annuity net inflows in the quarter, partially offset by fixed annuity net outflows of $190 million.  While variable annuity net inflows remained below historical levels, net inflows more than doubled sequentially due to improved sales within the Ameriprise channel.

 

·                  The insurance business had its strongest cash sales quarter since the third quarter of 2008.  Variable universal life / universal life (VUL/UL) sales were $59 million in the quarter, up 31 percent from a year ago with increases in both variable and fixed universal life insurance.  In the second quarter of 2010, VUL/UL ending policyholder account balances were up 8 percent to $8.6 billion compared to a year ago.

 

·                  Ameriprise Auto & Home premiums increased 7 percent from a year ago, primarily due to growth in policy counts.

 

4



 

Liquidity and Balance Sheet as of June 30, 2010

 

The company maintains strong balance sheet fundamentals, excess capital and financial flexibility to capture additional growth opportunities.

 

Conservative capital management

 

·                  The company’s excess capital position was more than $1.5 billion.

 

·                  The company repurchased 5.7 million shares of its common stock for $220 million.

 

·                  RiverSource Life Insurance Company’s estimated risk-based capital ratio was above 500 percent.

 

·                  The debt-to-total capital ratio attributable to Ameriprise Financial was 20.4 percent.  The debt-to-total capital ratio was 19.4 percent excluding non-recourse debt, the impact of consolidated investment entities and the 75 percent equity credit for the hybrid securities.

 

·                  The company will continue to use enterprise risk management capabilities and product hedging to anticipate and mitigate risk.  The company’s variable annuity hedging program continued to perform well.

 

Substantial liquidity

 

·                  Cash and cash equivalents were $3.8 billion, with $1.6 billion at the holding company level and $2.1 billion in free cash.

 

High-quality investment portfolio

 

·                  The $32 billion available-for-sale portfolio remained well diversified and high quality.

 

·                  The investment portfolio remained in a net unrealized gain position, with $1.6 billion in net unrealized gains.

 

·                  The total investment portfolio, including cash and cash equivalents, was $40.4 billion and remained well positioned.  Detailed information about the portfolio is available at ir.ameriprise.com

 

Segment Results

 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment Results

 

 

 

Quarter Ended June 30, 2010

 

Quarter Ended June 30, 2009

 

(in millions, unaudited)

 

GAAP

 

Less:
Adjustments
(1)

 

Operating

 

GAAP

 

Less:
Adjustments
(1)

 

Operating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

$

969

 

$

1

 

$

968

 

$

785

 

$

(8

)

$

793

 

Expenses

 

884

 

4

 

880

 

788

 

16

 

772

 

Pretax income (loss)

 

$

85

 

$

(3

)

$

88

 

$

(3

)

$

(24

)

$

21

 

 


(1)  Includes net realized gains (losses) and integration charges.

 

Advice & Wealth Management reported pretax income of $85 million for the second quarter of 2010 compared to a pretax loss of $3 million a year ago.  Segment operating earnings were $88 million compared to $21 million a year ago.  Pretax operating margin for the second quarter of 2010 was 9.1 percent.

 

Operating net revenues increased 22 percent to $968 million from higher management and distribution fees driven by year-over-year market appreciation, retail net inflows and increased brokerage transactional activity.

 

Operating expenses increased 14 percent to $880 million, primarily as a result of higher advisor compensation from higher business levels.  Segment operating general and administrative expenses declined slightly reflecting cost controls partially offset by continued investment in the business, including the roll-out of an enhanced brokerage platform.

 

Advisor productivity increased for the fifth consecutive quarter driven by higher asset-based fees as a result of year-over-year market appreciation and net inflows, improved client activity and the company’s focus on higher-producing advisors.

 

5



 

Ameriprise Financial, Inc.

Asset Management Segment Results

 

 

 

Quarter Ended June 30, 2010

 

Quarter Ended June 30, 2009

 

(in millions, unaudited)

 

GAAP

 

Less:
Adjustments
(1)

 

Operating

 

GAAP

 

Less:
Adjustments
(1)

 

Operating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Management

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

$

562

 

$

 

$

562

 

$

293

 

$

 

$

293

 

Expenses

 

506

 

48

 

458

 

305

 

9

 

296

 

Pretax income (loss)

 

$

56

 

$

(48

)

$

104

 

$

(12

)

$

(9

)

$

(3

)

 


(1)  Includes integration charges.

 

Asset Management reported pretax income of $56 million for the second quarter of 2010 compared to a $12 million loss a year ago.  Segment operating earnings were $104 million compared to a $3 million loss a year ago driven by the inclusion of two months of Columbia Management results during the quarter, as well as benefits from year-over-year market appreciation on assets and re-engineering.  Asset Management pretax operating margin for the second quarter of 2010 was 18.5 percent.

 

Operating net revenues increased 92 percent to $562 million driven by an increase in management fees due to the growth in assets from the acquisition and market appreciation.

 

Operating expenses increased 55 percent to $458 million, primarily reflecting increased general and administrative and distribution expenses from the acquisition.  During the quarter, the company recognized $48 million in integration-related expenses, which was consistent with original estimates.

 

The U.S. asset management business ended the quarter with $327 billion in managed assets and strong investment and wholesaling teams in place.  Investment performance continued to be solid, complementing strong longer-term investment track records.  Net outflows in the second quarter were $4.6 billion, including $2.1 billion from a single low-yielding institutional account and $0.8 billion in lower-margin sub-advised retail portfolios included in acquired assets, as well as integration-related outflows.  Retail net outflows also reflected slower equity sales, consistent with the industry.

 

At Threadneedle, total managed assets were $89 billion at June 30, 2010, up 8 percent from a year ago reflecting year-over-year market appreciation and net inflows, partially offset by negative foreign currency translation.  Total net outflows of $1.1 billion in the second quarter of 2010 were primarily due to institutional outflows in Zurich-related portfolios.  In addition, market volatility negatively impacted European retail investor behavior in the quarter, dampening the positive trend in flows from prior quarters and contributing to net outflows in retail portfolios.  Longer-term investment track records remained strong.

 

Ameriprise Financial, Inc.

Annuities Segment Results

 

 

Quarter Ended June 30, 2010

 

Quarter Ended June 30, 2009

 

(in millions, unaudited)

 

GAAP

 

Less:
Adjustments
(1)

 

Operating

 

GAAP

 

Less:
Adjustments
(1)

 

Operating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

$

630

 

$

4

 

$

626

 

$

562

 

$

8

 

$

554

 

Expenses

 

497

 

 

497

 

468

 

 

468

 

Pretax income

 

$

133

 

$

4

 

$

129

 

$

94

 

$

8

 

$

86

 

 


(1)  Includes net realized gains.

 

Annuities reported pretax income of $133 million for the second quarter of 2010 compared to $94 million a year ago. Segment operating earnings were $129 million compared to $86 million a year ago.

 

6



 

Segment operating earnings in the quarter included the following items:

 

·      $35 million increased expense from accelerated DAC and DSIC amortization driven by equity market declines in the quarter.

 

·      $26 million benefit from revising certain calculations in its valuation of DAC and DSIC.

 

·      $25 million benefit, net of DAC and DSIC, from the mark-to-market valuation of hedged living benefits, primarily driven by the impact of credit spreads on the GAAP liability valuation, which the company does not hedge.

 

·      $6 million in additional benefits expense, net of DAC amortization, related to the implementation of an enhanced asset allocation program known as Enhanced Portfolio Navigator for variable annuity and variable universal life products.

 

Operating net revenues increased 13 percent to $626 million, reflecting increased management and distribution fees as a result of increased separate account balances, primarily due to higher equity market levels and variable annuity net inflows.

 

Segment general and administrative expenses increased $5 million from a year ago, primarily driven by additional expenses related to a new product introduction and the implementation of Enhanced Portfolio Navigator.

 

Total annuity net inflows in the quarter continued to reflect variable annuity net inflows largely offset by fixed annuity net outflows.  While variable annuity sales were consistent with the year-ago period, variable annuity sales increased 19 percent sequentially.  Lower fixed annuity sales in the quarter primarily reflected decreased client demand due to lower offered crediting rates.

 

Ameriprise Financial, Inc.

Protection Segment Results

 

 

 

Quarter Ended June 30, 2010

 

Quarter Ended June 30, 2009

 

(in millions, unaudited)

 

GAAP

 

Less:
Adjustments
(1)

 

Operating

 

GAAP

 

Less:
Adjustments
(1)

 

Operating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Protection

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

$

521

 

$

1

 

$

520

 

$

497

 

$

(1

)

$

498

 

Expenses

 

386

 

 

386

 

387

 

 

387

 

Pretax income

 

$

135

 

$

1

 

$

134

 

$

110

 

$

(1

)

$

111

 

 


(1)   Includes net realized gains (losses).

 

Protection reported pretax income of $135 million for the second quarter of 2010 compared to pretax income of $110 million a year ago.  Segment operating earnings were $134 million compared to $111 million a year ago. Operating earnings included a $7 million benefit from revising certain calculations in its valuation of DAC; a $6 million DAC amortization benefit from the introduction of Enhanced Portfolio Navigator; and a $4 million increase in expense from accelerated DAC amortization driven by equity market declines in the quarter.

 

Operating net revenues increased 4 percent to $520 million compared to a year ago, primarily driven by increased net investment income due to higher investment yields and increased general account assets, as well as auto and home premium growth.

 

Operating expenses were essentially flat at $386 million as volume-based expense increases were offset by a $6 million benefit from the introduction of Enhanced Portfolio Navigator.

 

Life and health insurance cash sales increased 23 percent from the year-ago period, reflecting improved client activity.

 

Auto and Home continued to grow new sales while retention remained strong driving net written premiums up 7 percent on a year-over-year basis.  In addition, the combined loss ratio and expense ratio in the quarter remained favorable.

 

7



 

Ameriprise Financial, Inc.

Corporate & Other Segment Results

 

 

Quarter Ended June 30, 2010

 

Quarter Ended June 30, 2009

 

(in millions, unaudited)

 

GAAP

 

Less:
Adjustments
(1)

 

Operating

 

GAAP

 

Less:
Adjustments
(1)

 

Operating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate & Other

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

$

188

 

$

202

 

$

(14

)

$

(12

)

$

 

$

(12

)

Expenses

 

131

 

67

 

64

 

62

 

1

 

61

 

Pretax income (loss)

 

$

57

 

$

135

 

$

(78

)

$

(74

)

$

1

 

$

(73

)

 


(1)     Includes revenues and expenses of the consolidated investment entities, net realized gains and integration charges.

 

Corporate & Other reported pretax income of $57 million for the second quarter of 2010 compared to a $74 million pretax loss a year ago.  Segment operating loss was $78 million in the quarter compared to a pretax loss of $73 million a year ago.

 

Operating expenses in the second quarter of 2010 included $8 million in higher general and administrative expenses related to supporting the $1.00 net asset value of certain 2a-7 funds.

 

Contacts

 

Investor Relations:

 

Media Relations:

Laura Gagnon

 

Paul Johnson

Ameriprise Financial

 

Ameriprise Financial

612.671.2080

 

612.671.0625

laura.c.gagnon@ampf.com

 

paul.w.johnson@ampf.com

 

 

 

 

 

Ben Pratt

 

 

Ameriprise Financial

 

 

612.678.5881

 

 

benjamin.j.pratt@ampf.com

 


 

Ameriprise Financial, Inc. is a diversified financial services company serving the comprehensive financial planning needs of the mass affluent and affluent. For more information visit ameriprise.com.

 

Ameriprise Financial Services, Inc. offers financial planning services, investments, insurance and annuity products.  RiverSource insurance and annuity products are issued by RiverSource Life Insurance Company, and in New York only by RiverSource Life Insurance Co. of New York, Albany, New York.  Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuity products in the state of New York.  These companies are all part of Ameriprise Financial, Inc. CA License #0684538. RiverSource Distributors, Inc. (Distributor), Member FINRA.

 

Forward-Looking Statements

 

This news release contains forward-looking statements that reflect management’s plans, estimates and beliefs.  Actual results could differ materially from those described in these forward-looking statements.  Examples of such forward-looking statements include:

 

·                  the statement in this news release that the integration of Columbia Management is on schedule and that operational and financial results are on track with expectations;

 

·                  the statement of belief in this news release that the company will continue to use enterprise risk management capabilities and product hedging to anticipate and mitigate risk;

 

8



 

·                  the statement of belief in this news release that the company expects its 2010 full-year effective tax rate will be at the low end of the 25 to 27 percent range;

 

·                  statements of the company’s plans, intentions, expectations, objectives or goals, including those relating to asset flows, mass affluent and affluent client acquisition strategy, client retention, financial advisor productivity, retention, recruiting and enrollments, general and administrative costs, consolidated tax rate, return of capital to shareholders and excess capital position;

 

·                  other statements about future economic performance, the performance of equity markets and interest rate variations and the economic performance of the United States and of global markets; and

 

·                  statements of assumptions underlying such statements.

 

The words “believe,” “expect,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “forecast,” “on pace,” “project” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.  Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from such statements.

 

Such factors include, but are not limited to:

 

·                  changes in the valuations, liquidity and volatility in the interest rate, credit default, equity market and foreign exchange environments;

 

·                  changes in relevant accounting standards, as well as changes in the litigation and regulatory environment, including ongoing legal proceedings and regulatory actions, the frequency and extent of legal claims threatened or initiated by clients, other persons and regulators, and developments in regulation and legislation, including the recent enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act;

 

·                  investment management performance and consumer acceptance of the company’s products;

 

·                  effects of competition in the financial services industry and changes in product distribution mix and distribution channels;

 

·                  changes to the company’s reputation that may arise from employee or affiliated advisor misconduct, legal or regulatory actions, improper management of conflicts of interest or otherwise;

 

·                  the company’s capital structure, including indebtedness, limitations on subsidiaries to pay dividends, and the extent, manner, terms and timing of any share or debt repurchases management may effect as well as the opinions of rating agencies and other analysts and the reactions of market participants or the company’s regulators, advisors, distribution partners or customers in response to any change or prospect of change in any such opinion;

 

·                  risks of default, capacity constraint or repricing by issuers or guarantors of investments the company owns or by counterparties to hedge, derivative, insurance or reinsurance arrangements or by manufacturers of products the company distributes, experience deviations from the company’s assumptions regarding such risks, the evaluations or the prospect of changes in evaluations of any such third parties published by rating agencies or other analysts, and the reactions of other market participants or the company’s regulators, advisors, distribution partners or customers in response to any such evaluation or prospect of changes in evaluation;

 

·                  experience deviations from the company’s assumptions regarding morbidity, mortality and persistency in certain annuity and insurance products, or from assumptions regarding market returns assumed in valuing DAC and DSIC or market volatility underlying our valuation and hedging of guaranteed living benefit annuity riders;

 

·                  changes in capital requirements that may be indicated, required or advised by regulators or rating agencies;

 

·                  the impacts of the company’s efforts to improve distribution economics and to grow third-party distribution of its products;

 

·                  the ability to complete the acquisition opportunities the company negotiates and to pursue other growth opportunities;

 

·                  the company’s ability to realize the financial, operating and business fundamental benefits or to obtain regulatory approvals regarding integrations we plan for the acquisitions we have completed or have contracted to complete, as well as the amount and timing of integration expenses;

 

·                  the ability and timing to realize savings and other benefits from re-engineering and tax planning;

 

·                  changes in the capital markets and competitive environments induced or resulting from the partial or total ownership or other support by central governments of certain financial services firms or financial assets; and

 

·                  general economic and political factors, including consumer confidence in the economy, the ability and inclination of consumers generally to invest as well as their ability and inclination to invest in financial instruments and products other than cash and cash equivalents, the costs of products and services the company consumes in the conduct of its business, and applicable legislation and regulation and changes therein, including tax laws, tax treaties, fiscal and central government treasury policy, and policies regarding the financial services industry and publicly-held firms, and regulatory rulings and pronouncements.

 

9



 

Management cautions the reader that the foregoing list of factors is not exhaustive. There may also be other risks that management is unable to predict at this time that may cause actual results to differ materially from those in forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Management undertakes no obligation to update publicly or revise any forward-looking statements. The foregoing list of factors should be read in conjunction with the “Risk Factors” discussion under Part 1, Item 1A of and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2009 and under Part 2, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, available at ir.ameriprise.com.

 

The financial results discussed in this news release represent past performance only, which may not be used to predict or project future results.  The financial results and values presented in this news release and the below-referenced Statistical Supplement are based upon asset valuations that represent estimates as of the date of this news release and may be revised in the company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2010.  For information about Ameriprise Financial entities, please refer to the Second Quarter 2010 Statistical Supplement available at ir.ameriprise.com and the tables that follow in this news release.

10



 

Ameriprise Financial, Inc.

Reconciliation Table: GAAP Income Statement to Operating Income Statement

 

 

 

Quarter Ended June 30, 2010

 

Quarter Ended June 30, 2009

 

 

 

(in millions, unaudited)

 

GAAP

 

Less:
Adjustments
(1)

 

Operating

 

GAAP

 

Less:
Adjustments
(1)

 

Operating

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

955

 

$

(10

)

$

965

 

$

606

 

$

(1

)

$

607

 

59

%

Distribution fees

 

453

 

 

453

 

351

 

 

351

 

29

 

Net investment income

 

654

 

162

 

492

 

511

 

7

 

504

 

(2

)

Premiums

 

299

 

 

299

 

269

 

 

269

 

11

 

Other revenues

 

236

 

46

 

190

 

175

 

(7

)

182

 

4

 

Total revenues

 

2,597

 

198

 

2,399

 

1,912

 

(1

)

1,913

 

25

 

Banking and deposit interest expense

 

20

 

 

20

 

38

 

1

 

37

 

(46

)

Total net revenues

 

2,577

 

198

 

2,379

 

1,874

 

(2

)

1,876

 

27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

621

 

 

621

 

432

 

 

432

 

44

 

Interest credited to fixed accounts

 

231

 

 

231

 

237

 

 

237

 

(3

)

Benefits, claims, losses and settlement expenses

 

298

 

 

298

 

587

 

 

587

 

(49

)

Amortization of deferred acquisition costs

 

171

 

 

171

 

(125

)

 

(125

)

NM

 

Interest and debt expense

 

74

 

45

 

29

 

28

 

 

28

 

4

 

General and administrative expense

 

716

 

64

 

652

 

600

 

25

 

575

 

13

 

Total expenses

 

2,111

 

109

 

2,002

 

1,759

 

25

 

1,734

 

15

 

Pretax income

 

466

 

89

 

377

 

115

 

(27

)

142

 

NM

 

Income tax provision

 

68

 

(18

)

86

 

28

 

(7

)

35

 

NM

 

Net income

 

398

 

107

 

291

 

87

 

(20

)

107

 

NM

 

Less: Net income (loss) attributable to noncontrolling interests

 

139

 

139

 

 

(8

)

(8

)

 

%

Net income attributable to Ameriprise Financial

 

$

259

 

$

(32

)

$

291

 

$

95

 

$

(12

)

$

107

 

NM

 

 


NM

Not Meaningful

 

(1)

Includes the elimination of management fees earned by the company from the consolidated investment entities and the related expense, revenues and expenses of the consolidated investment entities, net realized gains/losses and integration charges. Income tax provision is calculated using the statutory tax rate of 35% on applicable adjustments.

 

11



 

Ameriprise Financial, Inc.
Reconciliation Table: Effective Tax Rate

 

(in millions, unaudited)

 

Quarter Ended June
30, 2010

 

 

 

 

 

Pretax income

 

$

466

 

Less: Pretax income attributable to noncontrolling interests

 

139

 

Pretax income excluding CIEs

 

$

327

 

 

 

 

 

Income tax provision

 

$

68

 

 

 

 

 

Effective tax rate

 

14.6

%

Effective tax rate excluding noncontrolling interests

 

20.8

%

 

Ameriprise Financial, Inc.

Reconciliation Table: Ameriprise Financial Debt to Ameriprise Financial Capital Ratio

June 30, 2010

 

(in millions, unaudited)

 

GAAP
Measure

 

Non-recourse
Debt and Equity
of Consolidated
Investment
Entities
(1)

 

GAAP Measure
Excluding
Non-recourse
Debt and Equity
of Consolidated
Investment

Entities

 

Impact of 75%
Equity
Credit
(2)

 

GAAP Measure
Excluding Non-
recourse Debt and
Equity of Consolidated
Investment
Entities with 75%
Equity Credit
(1)(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial Debt

 

$

2,684

 

$

6

 

$

2,678

 

$

242

 

$

2,436

 

Ameriprise Financial Capital

 

$

13,182

 

$

602

 

$

12,580

 

 

$

12,580

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial Debt to Ameriprise Financial Capital

 

20.4

%

 

 

21.3

%

 

 

19.4

%

 


(1)  Includes non-recourse debt of muni inverse floaters and equity impacts attributable to consolidated investment entities.

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

 

12



 

Ameriprise Financial, Inc.

Return on Equity (ROE) Excluding Accumulated Other Comprehensive Income (Loss) “AOCI”
Calculation for the 12 Months Ended June 30, 2010

 

(in millions, unaudited)

 

ROE excluding AOCI

 

Less: Adjustments(1)

 

Operating ROE(2)

 

 

 

 

 

 

 

 

 

Return

 

$

970

 

$

(48

)

$

1,018

 

 

 

 

 

 

 

 

 

Equity excluding AOCI

 

$

9,178

 

$

226

 

$

8,952

 

 

 

 

 

 

 

 

 

Return on Equity excluding AOCI

 

10.6

%

 

 

11.4

%

 

Ameriprise Financial, Inc.

Return on Equity (ROE) Excluding Accumulated Other Comprehensive Income (Loss) “AOCI”
Calculation for the 12 Months Ended June 30, 2009

 

(in millions, unaudited)

 

ROE excluding AOCI

 

Less: Adjustments(1)

 

Operating ROE(2)

 

 

 

 

 

 

 

 

 

Return

 

$

(214

)

$

(499

)

$

285

 

 

 

 

 

 

 

 

 

Equity excluding AOCI

 

$

7,757

 

$

 

$

7,757

 

 

 

 

 

 

 

 

 

Return on Equity excluding AOCI

 

(2.8

)%

 

 

3.7

%

 


(1)     Adjustments reflect the trailing twelve months’ sum of after-tax net realized gains/losses and integration charges less the equity impacts attributable to the consolidated investment entities.

 (2)   Operating return on equity excluding accumulated other comprehensive income (loss) and consolidated investment entities is calculated using the trailing twelve months of earnings excluding the after-tax net realized gains/losses and integration charges in the numerator, and Ameriprise Financial shareholders’ equity excluding the impact of consolidating investment entities using a five point average of quarter-end equity in the denominator.

 

Ameriprise Financial, Inc.
Reconciliation Table: Book Value

 

(in millions, except per share amounts, unaudited)

 

June 30,
2010

 

June 30,
2009

 

%
Change

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial shareholders’ equity

 

$

10,498

 

$

8,106

 

30

%

Less: Appropriated retained earnings of CIEs

 

620

 

 

NM

 

Add: Accumulated other comprehensive income (AOCI) of CIEs(1)

 

24

 

 

NM

 

Total Ameriprise Financial shareholders’ equity excluding CIEs

 

9,902

 

8,106

 

22

 

Less: AOCI excluding CIEs

 

631

 

 

NM

 

Add: Accumulated other comprehensive loss

 

 

386

 

NM

 

Total Ameriprise Financial shareholders’ equity excluding AOCI and CIEs

 

$

9,271

 

$

8,492

 

9

 

 

 

 

 

 

 

 

 

Basic common shares outstanding

 

257.0

 

259.2

 

(1

)

 

 

 

 

 

 

 

 

Book value per share

 

$

40.85

 

$

31.27

 

31

 

Book value per share excluding CIEs

 

$

38.53

 

$

31.27

 

23

 

Book value per share excluding AOCI and CIEs

 

$

36.07

 

$

32.76

 

10

%

 


NM   Not Meaningful

(1)     This adjustment reflects the add back of the elimination of unrealized gains on the Company’s investment in CIEs.

 

13


EX-99.2 3 a10-14610_1ex99d2.htm EX-99.2

Exhibit 99.2

 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Second 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

48

Exhibit C

 

Reconciliation of GAAP Metrics to Operating Metrics

51

 

2



 

GRAPHIC

Statistical Supplement Package

(unaudited)

 

Second Quarter 2010

 

 

Consolidated Results

 

3



 

Ameriprise Financial, Inc.

Statistical Supplement Presentation

Second 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 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 June 30, 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 (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

As Reported on a GAAP Basis

 

$

2,577

 

$

466

 

$

259

 

$

0.98

 

10.6

%

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Basis Excluding CIEs (2)

 

$

2,386

 

$

327

 

$

259

 

$

0.98

 

10.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Impact of the CIEs

 

$

191

 

$

139

 

$

 

$

 

(0.2

)%

 

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)             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.

(2)             See non-GAAP financial information on pages 38 and 48 - 49.

 

4



 

Ameriprise Financial, Inc.

Statistical Supplement Presentation

Second 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 June 30, 2010

 

 

 

Advice & Wealth

 

Asset

 

 

 

 

 

Corporate

 

 

 

(in millions unless otherwise noted, unaudited)

 

Management

 

Management

 

Annuities

 

Protection

 

& Other

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP pretax income

 

$

85

 

$

56

 

$

133

 

$

135

 

$

57

 

$

466

 

Impact of the CIEs

 

 

 

 

 

139

 

139

 

GAAP pretax income (loss) excluding CIEs (1)

 

85

 

56

 

133

 

135

 

(82

)

327

 

Integration charges

 

4

 

48

 

 

 

5

 

57

 

Realized (gains) losses

 

(1

)

 

(4

)

(1

)

(1

)

(7

)

Pretax operating earnings (loss) (1)

 

$

88

 

$

104

 

$

129

 

$

134

 

$

(78

)

377

 

Income tax provision (2)

 

 

 

 

 

 

 

 

 

 

 

86

 

Operating earnings (1)

 

 

 

 

 

 

 

 

 

 

 

$

291

 

 


(1)             See non-GAAP financial information on page 38.

(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

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

606

 

$

689

 

$

855

 

$

774

 

$

955

 

$

1,160

 

$

1,729

 

$

349

 

58

%

$

569

 

49

%

$

181

 

23

%

Distribution fees

 

351

 

367

 

391

 

391

 

453

 

662

 

844

 

102

 

29

%

182

 

27

%

62

 

16

%

Net investment income

 

511

 

538

 

535

 

590

 

654

 

929

 

1,244

 

143

 

28

%

315

 

34

%

64

 

11

%

Premiums

 

269

 

276

 

287

 

282

 

299

 

535

 

581

 

30

 

11

%

46

 

9

%

17

 

6

%

Other revenues

 

175

 

109

 

229

 

255

 

236

 

384

 

491

 

61

 

35

%

107

 

28

%

(19

)

(7

)%

Total revenues

 

1,912

 

1,979

 

2,297

 

2,292

 

2,597

 

3,670

 

4,889

 

685

 

36

%

1,219

 

33

%

305

 

13

%

Banking and deposit interest expense

 

38

 

33

 

28

 

21

 

20

 

80

 

41

 

(18

)

(47

)%

(39

)

(49

)%

(1

)

(5

)%

Total net revenues

 

1,874

 

1,946

 

2,269

 

2,271

 

2,577

 

3,590

 

4,848

 

703

 

38

%

1,258

 

35

%

306

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

432

 

462

 

504

 

525

 

621

 

816

 

1,146

 

189

 

44

%

330

 

40

%

96

 

18

%

Interest credited to fixed accounts

 

237

 

232

 

229

 

228

 

231

 

442

 

459

 

(6

)

(3

)%

17

 

4

%

3

 

1

%

Benefits, claims, losses and settlement expenses

 

587

 

306

 

349

 

354

 

298

 

687

 

652

 

(289

)

(49

)%

(35

)

(5

)%

(56

)

(16

)%

Amortization of deferred acquisition costs

 

(125

)

(64

)

120

 

118

 

171

 

161

 

289

 

296

 

 

#

128

 

80

%

53

 

45

%

Interest and debt expense

 

28

 

45

 

28

 

64

 

74

 

54

 

138

 

46

 

 

#

84

 

 

#

10

 

16

%

General and administrative expense

 

600

 

625

 

708

 

621

 

716

 

1,181

 

1,337

 

116

 

19

%

156

 

13

%

95

 

15

%

Total expenses

 

1,759

 

1,606

 

1,938

 

1,910

 

2,111

 

3,341

 

4,021

 

352

 

20

%

680

 

20

%

201

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

115

 

340

 

331

 

361

 

466

 

249

 

827

 

351

 

 

#

578

 

 

#

105

 

29

%

Income tax provision

 

28

 

80

 

57

 

65

 

68

 

46

 

133

 

40

 

 

#

87

 

 

#

3

 

5

%

Net income

 

87

 

260

 

274

 

296

 

398

 

203

 

694

 

311

 

 

#

491

 

 

#

102

 

34

%

Less: Net income (loss) attributable to noncontrolling interests

 

(8

)

 

37

 

82

 

139

 

(22

)

221

 

147

 

 

#

243

 

 

#

57

 

70

%

Net income attributable to Ameriprise Financial

 

$

95

 

$

260

 

$

237

 

$

214

 

$

259

 

$

225

 

$

473

 

$

164

 

 

#

$

248

 

 

#

$

45

 

21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.41

 

$

1.00

 

$

0.92

 

$

0.82

 

$

0.99

 

$

1.00

 

$

1.81

 

$

0.58

 

 

#

$

0.81

 

81

%

$

0.17

 

21

%

Earnings per diluted share

 

$

0.41

 

$

1.00

 

$

0.90

 

$

0.81

 

$

0.98

 

$

0.99

 

$

1.78

 

$

0.57

 

 

#

$

0.79

 

80

%

$

0.17

 

21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue growth

 

(4.5

)%

19.7

%

70.0

%

32.3

%

37.5

%

(9.2

)%

35.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity excluding AOCI (1)

 

(2.8

)%

1.5

%

8.8

%

9.3

%

10.6

%

(2.8

)%

10.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per diluted share growth

 

(55.9

)%

NM

 

NM

 

39.7

%

139.0

%

(43.4

)%

79.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income margin

 

6.1

%

17.5

%

14.6

%

15.9

%

18.1

%

6.9

%

17.1

%

12.0

%

 

 

10.2

%

 

 

2.2

%

 

 

Net income attributable to Ameriprise Financial margin

 

5.1

%

13.4

%

10.4

%

9.4

%

10.1

%

6.3

%

9.8

%

5.0

%

 

 

3.5

%

 

 

0.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

24.3

%

23.5

%

17.2

%

17.9

%

14.6

%

18.5

%

16.1

%

(9.7

)%

 

 

(2.4

)%

 

 

(3.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial’s shareholders’ equity

 

$

8,106

 

$

9,045

 

$

9,269

 

$

10,104

 

$

10,498

 

$

8,106

 

$

10,498

 

$

2,392

 

30

%

$

2,392

 

30

%

$

394

 

4

%

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

 

$

8,492

 

$

8,766

 

$

9,004

 

$

9,737

 

$

9,891

 

$

8,492

 

$

9,891

 

$

1,399

 

16

%

$

1,399

 

16

%

$

154

 

2

%

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

 

$

32.76

 

$

33.87

 

$

34.78

 

$

37.11

 

$

38.49

 

$

32.76

 

$

38.49

 

$

5.73

 

17

%

$

5.73

 

17

%

$

1.38

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

7,757

 

$

7,944

 

$

8,208

 

$

8,702

 

$

9,178

 

$

7,757

 

$

9,178

 

$

1,421

 

18

%

$

1,421

 

18

%

$

476

 

5

%

 


(1)  See non-GAAP financial information on pages 38 and 51 - 52.

 

# Variance of 100% or greater.

 

6



 

Ameriprise Financial, Inc.

Consolidated Investment Entities Income Statements

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

(1

)

$

 

$

(1

)

$

(9

)

$

(10

)

$

(1

)

$

(19

)

$

(9

)

 

#

$

(18

)

 

#

$

(1

)

(11

)%

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

1

 

(1

)

1

 

79

 

155

 

2

 

234

 

154

 

 

#

232

 

 

#

76

 

96

%

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

(7

)

4

 

43

 

57

 

46

 

(19

)

103

 

53

 

 

#

122

 

 

#

(11

)

(19

)%

Total revenues

 

(7

)

3

 

43

 

127

 

191

 

(18

)

318

 

198

 

 

#

336

 

 

#

64

 

50

%

Banking and deposit interest expense

 

1

 

1

 

3

 

 

 

2

 

 

(1

)

 

#

(2

)

 

#

 

 

Total net revenues

 

(8

)

2

 

40

 

127

 

191

 

(20

)

318

 

199

 

 

#

338

 

 

#

64

 

50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

40

 

45

 

 

85

 

45

 

 

85

 

 

5

 

13

%

General and administrative expense

 

 

2

 

3

 

5

 

7

 

2

 

12

 

7

 

 

10

 

 

#

2

 

40

%

Total expenses

 

 

2

 

3

 

45

 

52

 

2

 

97

 

52

 

 

95

 

 

#

7

 

16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income (loss)

 

(8

)

 

37

 

82

 

139

 

(22

)

221

 

147

 

 

#

243

 

 

#

57

 

70

%

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

(8

)

 

37

 

82

 

139

 

(22

)

221

 

147

 

 

 

243

 

 

 

57

 

70

%

Less: Net income (loss) attributable to noncontrolling interests

 

(8

)

 

37

 

82

 

139

 

(22

)

221

 

147

 

 

#

243

 

 

#

57

 

70

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(0.2

)%

1.2

%

6.6

%

8.2

%

10.7

%

(0.3

)%

9.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity excluding AOCI (1)

 

 

 

 

(0.1

)%

(0.2

)%

 

(0.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per diluted share growth

 

 

NM

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income (loss) margin

 

(0.4

)%

 

1.4

%

2.9

%

4.4

%

(0.6

)%

3.7

%

4.8

%

 

 

4.3

%

 

 

1.5

%

 

 

Net income (loss) attributable to CIEs margin

 

0.1

%

 

(0.2

)%

(0.6

)%

(0.8

)%

0.1

%

(0.6

)%

(0.9

)%

 

 

(0.7

)%

 

 

(0.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

$

 

$

 

$

 

$

482

 

$

596

 

$

 

$

596

 

$

596

 

 

$

596

 

 

$

114

 

24

%

Shareholders’ equity excluding AOCI

 

$

 

$

 

$

 

$

508

 

$

620

 

$

 

$

620

 

$

620

 

 

$

620

 

 

$

112

 

22

%

Shareholders’ equity excluding AOCI / outstanding shares

 

$

 

$

 

$

 

$

1.94

 

$

2.42

 

$

 

$

2.42

 

$

2.42

 

 

$

2.42

 

 

$

0.48

 

25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity excluding AOCI - 5 point ave.

 

$

 

$

 

$

 

$

101

 

$

226

 

$

 

$

226

 

$

226

 

 

$

226

 

 

$

125

 

 

#

 


(1) See non-GAAP financial information on page 38.

 

# Variance of 100% or greater.

 

7



 

Ameriprise Financial, Inc.

Consolidated GAAP Income Statements Excluding Consolidated Investment Entities

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

607

 

$

689

 

$

856

 

$

783

 

$

965

 

$

1,161

 

$

1,748

 

$

358

 

59

%

$

587

 

51

$

182

 

23

%

Distribution fees

 

351

 

367

 

391

 

391

 

453

 

662

 

844

 

102

 

29

%

182

 

27

%

62

 

16

%

Net investment income

 

510

 

539

 

534

 

511

 

499

 

927

 

1,010

 

(11

)

(2

)%

83

 

9

%

(12

)

(2

)%

Premiums

 

269

 

276

 

287

 

282

 

299

 

535

 

581

 

30

 

11

%

46

 

9

%

17

 

6

%

Other revenues

 

182

 

105

 

186

 

198

 

190

 

403

 

388

 

8

 

4

%

(15

)

(4

)%

(8

)

(4

)%

Total revenues

 

1,919

 

1,976

 

2,254

 

2,165

 

2,406

 

3,688

 

4,571

 

487

 

25

%

883

 

24

%

241

 

11

%

Banking and deposit interest expense

 

37

 

32

 

25

 

21

 

20

 

78

 

41

 

(17

)

(46

)%

(37

)

(47

)%

(1

)

(5

)%

Total net revenues

 

1,882

 

1,944

 

2,229

 

2,144

 

2,386

 

3,610

 

4,530

 

504

 

27

%

920

 

25

%

242

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

432

 

462

 

504

 

525

 

621

 

816

 

1,146

 

189

 

44

%

330

 

40

%

96

 

18

%

Interest credited to fixed accounts

 

237

 

232

 

229

 

228

 

231

 

442

 

459

 

(6

)

(3

)%

17

 

4

%

3

 

1

%

Benefits, claims, losses and settlement expenses

 

587

 

306

 

349

 

354

 

298

 

687

 

652

 

(289

)

(49

)%

(35

)

(5

)%

(56

)

(16

)%

Amortization of deferred acquisition costs

 

(125

)

(64

)

120

 

118

 

171

 

161

 

289

 

296

 

 

#

128

 

80

%

53

 

45

%

Interest and debt expense

 

28

 

45

 

28

 

24

 

29

 

54

 

53

 

1

 

4

%

(1

)

(2

)%

5

 

21

%

General and administrative expense

 

600

 

623

 

705

 

616

 

709

 

1,179

 

1,325

 

109

 

18

%

146

 

12

%

93

 

15

%

Total expenses

 

1,759

 

1,604

 

1,935

 

1,865

 

2,059

 

3,339

 

3,924

 

300

 

17

%

585

 

18

%

194

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

123

 

340

 

294

 

279

 

327

 

271

 

606

 

204

 

 

#

335

 

 

#

48

 

17

%

Income tax provision

 

28

 

80

 

57

 

65

 

68

 

46

 

133

 

40

 

 

#

87

 

 

#

3

 

5

%

Net income

 

95

 

260

 

237

 

214

 

259

 

225

 

473

 

164

 

 

#

248

 

 

#

45

 

21

%

Less: Net income (loss) attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Ameriprise Financial

 

95

 

260

 

237

 

214

 

259

 

225

 

473

 

164

 

 

#

248

 

 

#

45

 

21

%

Integration charges net of tax

 

16

 

21

 

15

 

4

 

37

 

28

 

41

 

21

 

 

#

13

 

46

%

33

 

 

#

Realized (gains) losses net of tax

 

(4

)

(9

)

(12

)

(3

)

(5

)

(13

)

(8

)

(1

)

(25

)% 

5

 

38

%

(2

)

(67

)%

Operating earnings (1)

 

$

107

 

$

272

 

$

240

 

$

215

 

$

291

 

$

240

 

$

506

 

$

184

 

 

#

$

266

 

 

#

$

76

 

35

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

$

1,882

 

$

1,944

 

$

2,229

 

$

2,144

 

$

2,386

 

$

3,610

 

$

4,530

 

$

504

 

27

%

$

920

 

25

%

$

242

 

11

%

Realized (gains) losses

 

(6

)

(14

)

(18

)

(5

)

(7

)

(21

)

(12

)

(1

)

(17

)%

9

 

43

%

(2

)

(40

)%

Operating total net revenues (1)

 

$

1,876

 

$

1,930

 

$

2,211

 

$

2,139

 

$

2,379

 

$

3,589

 

$

4,518

 

$

503

 

27

%

$

929

 

26

%

$

240

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Operating Income Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Income

 

$

123

 

$

340

 

$

294

 

$

279

 

$

327

 

$

271

 

$

606

 

$

204

 

 

#

$

335

 

 

#

$

48

 

17

%

Integration charges

 

25

 

32

 

22

 

7

 

57

 

44

 

64

 

32

 

 

#

20

 

45

%

50

 

 

#

Realized (gains) losses

 

(6

)

(14

)

(18

)

(5

)

(7

)

(21

)

(12

)

(1

)

(17

)%

9

 

43

%

(2

)

(40

)%

Pretax operating earnings (1)

 

$

142

 

$

358

 

$

298

 

$

281

 

$

377

 

$

294

 

$

658

 

$

235

 

 

#

$

364

 

 

#

$

96

 

34

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

22.8

%

23.5

%

19.4

%

23.2

%

20.8

%

17.0

%

21.9

%

(2.0

)%

 

 

4.9

%

 

 

(2.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic operating earnings per share (1)

 

$

0.47

 

$

1.05

 

$

0.93

 

$

0.83

 

$

1.11

 

$

1.06

 

$

1.94

 

$

0.64

 

 

#

$

0.88

 

83

%

$

0.28

 

34

%

Operating earnings per diluted share (1)

 

$

0.47

 

$

1.04

 

$

0.91

 

$

0.81

 

$

1.10

 

$

1.06

 

$

1.91

 

$

0.63

 

 

#

$

0.85

 

80

%

$

0.29

 

36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(5.9

)%

(1.4

)%

24.7

%

24.9

%

26.8

%

(10.6

)%

25.9

%

 

 

 

 

 

 

 

 

 

 

 

 

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

 

3.7

%

5.3

%

9.2

%

9.7

%

11.4

%

3.7

%

11.4

%

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(53.0

)%

70.5

%

NM

 

35.0

%

134.0

%

(44.2

)%

80.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin (1)

 

7.5

%

18.4

%

13.4

%

13.1

%

15.8

%

8.1

%

14.5

%

8.3

%

 

 

6.4

%

 

 

2.7

%

 

 

Operating margin (1)

 

5.7

%

14.1

%

10.9

%

10.1

%

12.2

%

6.7

%

11.2

%

6.5

%

 

 

4.5

%

 

 

2.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial’s shareholders’ equity

 

$

8,106

 

$

9,045

 

$

9,269

 

$

9,622

 

$

9,902

 

$

8,106

 

$

9,902

 

$

1,796

 

22

%

$

1,796

 

22

%

$

280

 

3

%

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

 

$

8,492

 

$

8,766

 

$

9,004

 

$

9,229

 

$

9,271

 

$

8,492

 

$

9,271

 

$

779

 

9

%

$

779

 

9

%

$

42

 

0

%

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

 

$

32.76

 

$

33.87

 

$

34.78

 

$

35.17

 

$

36.07

 

$

32.76

 

$

36.07

 

$

3.31

 

10

%

$

3.31

 

10

%

$

0.90

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

7,757

 

$

7,944

 

$

8,208

 

$

8,601

 

$

8,952

 

$

7,757

 

$

8,952

 

$

1,195

 

15

%

$

1,195

 

15

%

$

351

 

4

%

 


(1) See non-GAAP financial information on pages 38 and 51 - 52.

 

# Variance of 100% or greater.

 

8



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Second Quarter 2010

 

 

Summary & Highlights

 

9



 

Ameriprise Financial, Inc.

Highlights

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions, except earnings per share amounts, headcount and as otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Operating Earnings Per Share (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.47

 

$

1.05

 

$

0.93

 

$

0.83

 

$

1.11

 

$

1.06

 

$

1.94

 

$

0.64

 

 

#

$

0.88

 

83

%

$

0.28

 

34

%

Earnings per diluted share

 

$

0.47

 

$

1.04

 

$

0.91

 

$

0.81

 

$

1.10

 

$

1.06

 

$

1.91

 

$

0.63

 

 

#

$

0.85

 

80

%

$

0.29

 

36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Metrics (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue growth: Target 6 - 8%

 

(5.9

)%

(1.4

)%

24.7

%

24.9

%

26.8

%

(10.6

)%

25.9

%

32.7

%

 

 

36.5

%

 

 

1.9

%

 

 

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

 

3.7

%

5.3

%

9.2

%

9.7

%

11.4

%

3.7

%

11.4

%

7.7

%

 

 

7.7

%

 

 

1.7

%

 

 

Earnings per diluted share growth: Target 12 - 15%

 

(53.0

)%

70.5

%

NM

 

35.0

%

134.0

%

(44.2

)%

80.2

%

187.0

%

 

 

124.4

%

 

 

99.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned, Managed, and Administered Assets (in billions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned

 

$

32.5

 

$

36.0

 

$

36.9

 

$

37.6

 

$

20.2

 

$

32.5

 

$

20.2

 

$

(12.3

)

(38

)%

$

(12.3

)

(38

)%

$

(17.4

)

(46

)%

Managed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External clients

 

222.2

 

247.7

 

256.6

 

254.5

 

398.8

 

222.2

 

398.8

 

176.6

 

79

%

176.6

 

79

%

144.3

 

57

%

Owned

 

62.3

 

67.1

 

68.1

 

70.4

 

86.1

 

62.3

 

86.1

 

23.8

 

38

%

23.8

 

38

%

15.7

 

22

%

Consolidated client assets

 

0.5

 

0.6

 

1.1

 

6.9

 

6.8

 

0.5

 

6.8

 

6.3

 

 

#

6.3

 

 

#

(0.1

)

(1

)%

Total managed

 

285.0

 

315.4

 

325.8

 

331.8

 

491.7

 

285.0

 

491.7

 

206.7

 

73

%

206.7

 

73

%

159.9

 

48

%

Administered

 

79.8

 

88.5

 

95.1

 

93.9

 

88.4

 

79.8

 

88.4

 

8.6

 

11

%

8.6

 

11

%

(5.5

)

(6

)%

Total OMA assets

 

$

397.3

 

$

439.9

 

$

457.8

 

$

463.3

 

$

600.3

 

$

397.3

 

$

600.3

 

$

203.0

 

51

%

$

203.0

 

51

%

$

137.0

 

30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total client assets

 

$

258,393

 

$

286,590

 

$

294,027

 

$

303,839

 

$

290,163

 

$

258,393

 

$

290,163

 

$

31,770

 

12

%

$

31,770

 

12

%

$

(13,676

)

(5

)%

Total financial advisors

 

12,508

 

12,314

 

12,036

 

11,837

 

11,684

 

12,508

 

11,684

 

(824

)

(7

)%

(824

)

(7

)%

(153

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net flows and net deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisor wrap

 

$

2,758

 

$

2,724

 

$

2,564

 

$

2,512

 

$

2,245

 

$

4,060

 

$

4,757

 

$

(513

)

(19

)%

$

697

 

17

%

$

(267

)

(11

)%

Asset Management

 

45

 

2,324

 

1,385

 

(834

)

(5,672

)

(102

)

(6,506

)

(5,717

)

 

#

(6,404

)

 

#

(4,838

)

 

#

Annuities

 

1,129

 

527

 

255

 

(68

)

9

 

2,908

 

(59

)

(1,120

)

(99

)%

(2,967

)

 

#

77

 

 

#

Variable universal life / Universal life

 

(37

)

(38

)

(34

)

(41

)

(36

)

(63

)

(77

)

1

 

3

%

(14

)

(22

)%

5

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

S&P 500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Daily average

 

894

 

994

 

1,088

 

1,121

 

1,134

 

852

 

1,128

 

240

 

27

%

276

 

32

%

13

 

1

%

Period end

 

919

 

1,057

 

1,115

 

1,169

 

1,031

 

919

 

1,031

 

112

 

12

%

112

 

12

%

(138

)

(12

)%

 


(1) See non-GAAP financial information on pages 38 and 51 - 52.

 

# Variance of 100% or greater.

 

10



 

Ameriprise Financial, Inc.

Common Share, Per Share and Capital Summary

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions, except earnings per share amounts)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

 %

 

Diff.

 

 %

 

Basic Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

219.1

 

255.0

 

255.1

 

255.1

 

257.4

 

216.5

 

255.1

 

38.3

 

17

%

38.6

 

18

%

2.3

 

1

%

Repurchases

 

 

 

 

 

(5.7

)

 

(5.7

)

(5.7

)

 

(5.7

)

 

(5.7

)

 

Issuances

 

36.0

 

0.2

 

0.1

 

2.7

 

0.4

 

39.1

 

3.1

 

(35.6

)

(99

)%

(36.0

)

(92

)%

(2.3

)

(85

)%

Other

 

(0.1

)

(0.1

)

(0.1

)

(0.4

)

(0.1

)

(0.6

)

(0.5

)

 

 

0.1

 

17

%

0.3

 

75

%

Total common outstanding

 

255.0

 

255.1

 

255.1

 

257.4

 

252.0

 

255.0

 

252.0

 

(3.0

)

(1

)%

(3.0

)

(1

)%

(5.4

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total common outstanding

 

255.0

 

255.1

 

255.1

 

257.4

 

252.0

 

255.0

 

252.0

 

(3.0

)

(1

)%

(3.0

)

(1

)%

(5.4

)

(2

)%

Nonforfeitable restricted stock units

 

4.2

 

3.7

 

3.8

 

5.0

 

5.0

 

4.2

 

5.0

 

0.8

 

19

%

0.8

 

19

%

 

 

Total basic common shares

 

259.2

 

258.8

 

258.9

 

262.4

 

257.0

 

259.2

 

257.0

 

(2.2

)

(1

)%

(2.2

)

(1

)%

(5.4

)

(2

)%

Total potentially dilutive

 

1.4

 

2.5

 

4.8

 

4.0

 

3.7

 

1.4

 

3.7

 

2.3

 

 

#

2.3

 

 

#

(0.3

)

(8

)%

Total diluted shares

 

260.6

 

261.3

 

263.7

 

266.4

 

260.7

 

260.6

 

260.7

 

0.1

 

 

0.1

 

 

(5.7

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

228.8

 

258.7

 

258.9

 

260.8

 

261.1

 

225.6

 

260.9

 

32.3

 

14

%

35.3

 

16

%

0.3

 

 

Diluted

 

230.0

 

260.7

 

263.3

 

265.0

 

265.3

 

226.8

 

265.1

 

35.3

 

15

%

38.3

 

17

%

0.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Book Value excluding CIEs (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial’s shareholders’ equity

 

$

8,106

 

$

9,045

 

$

9,269

 

$

9,622

 

$

9,902

 

$

8,106

 

$

9,902

 

$

1,796

 

22

%

$

1,796

 

22

%

$

280

 

3

%

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

 

$

8,492

 

$

8,766

 

$

9,004

 

$

9,229

 

$

9,271

 

$

8,492

 

$

9,271

 

$

779

 

9

%

$

779

 

9

%

$

42

 

 

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

 

$

7,757

 

$

7,944

 

$

8,208

 

$

8,601

 

$

8,952

 

$

7,757

 

$

8,952

 

$

1,195

 

15

%

$

1,195

 

15

%

$

351

 

4

%

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

 

$

32.76

 

$

33.87

 

$

34.78

 

$

35.17

 

$

36.07

 

$

32.76

 

$

36.07

 

$

3.31

 

10

%

$

3.31

 

10

%

$

0.90

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Returned to Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

$

38

 

$

43

 

$

46

 

$

45

 

$

47

 

$

75

 

$

92

 

$

9

 

24

%

$

17

 

23

%

$

2

 

4

%

Common stock share repurchases

 

$

 

$

 

$

 

$

 

$

220

 

$

 

$

220

 

$

220

 

 

$

220

 

 

$

220

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to total capital of Ameriprise Financial

 

22.2

%

17.1

%

16.8

%

20.5

%

20.4

%

22.2

%

20.4

%

(1.8

)%

 

 

(1.8

)%

 

 

(0.1

)%

 

 

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

 

22.2

%

17.1

%

16.7

%

21.3

%

21.3

%

22.2

%

21.3

%

(0.9

)%

 

 

(0.9

)%

 

 

 

 

 

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

 

19.9

%

14.9

%

14.6

%

19.3

%

19.4

%

19.9

%

19.4

%

(0.5

)%

 

 

(0.5

)%

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill and intangible assets

 

$

1,443

 

$

1,419

 

$

1,429

 

$

1,393

 

$

2,289

 

$

1,443

 

$

2,289

 

$

846

 

59

%

$

846

 

59

%

$

896

 

64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

478

 

$

507

 

$

499

 

$

481

 

$

479

 

$

873

 

$

960

 

$

1

 

0

%

$

87

 

10

%

$

(2

)

0

%

Realized gains (losses)

 

6

 

14

 

18

 

5

 

7

 

21

 

12

 

1

 

17

%

(9

)

(43

)%

2

 

40

%

Affordable housing

 

(7

)

(7

)

(5

)

(3

)

(5

)

(13

)

(8

)

2

 

29

%

5

 

38

%

(2

)

(67

)%

Other (including seed money)

 

33

 

25

 

22

 

28

 

18

 

46

 

46

 

(15

)

(45

)%

 

0

%

(10

)

(36

)%

Consolidated investment entities

 

1

 

(1

)

1

 

79

 

155

 

2

 

234

 

154

 

 

#

232

 

 

#

76

 

96

%

Total net investment income

 

$

511

 

$

538

 

$

535

 

$

590

 

$

654

 

$

929

 

$

1,244

 

$

143

 

28

%

$

315

 

34

%

$

64

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated Equity (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

$

825

 

$

784

 

$

747

 

$

759

 

$

752

 

$

825

 

$

752

 

$

(73

)

(9

)%

$

(73

)

(9

)%

$

(7

)

(1

)%

Asset Management

 

1,043

 

1,059

 

1,054

 

1,044

 

1,947

 

1,043

 

1,947

 

904

 

87

%

904

 

87

%

903

 

86

%

Annuities

 

2,093

 

2,322

 

2,459

 

2,317

 

2,395

 

2,093

 

2,395

 

302

 

14

%

302

 

14

%

78

 

3

%

Protection

 

2,450

 

2,463

 

2,540

 

2,560

 

2,654

 

2,450

 

2,654

 

204

 

8

%

204

 

8

%

94

 

4

%

Corporate & Other

 

2,081

 

2,138

 

2,204

 

2,549

 

1,523

 

2,081

 

1,523

 

(558

)

(27

)%

(558

)

(27

)%

(1,026

)

(40

)%

Total allocated equity

 

$

8,492

 

$

8,766

 

$

9,004

 

$

9,229

 

$

9,271

 

$

8,492

 

$

9,271

 

$

779

 

9

%

$

779

 

9

%

$

42

 

0

%

 


(1) See non-GAAP financial information on page 38.

(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

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Segment Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

$

785

 

$

832

 

$

873

 

$

879

 

$

969

 

$

1,511

 

$

1,848

 

$

184

 

23

%

$

337

 

22

%

$

90

 

10

%

Expenses

 

788

 

820

 

855

 

828

 

884

 

1,575

 

1,712

 

96

 

12

%

137

 

9

%

56

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment income (loss)

 

(3

)

12

 

18

 

51

 

85

 

(64

)

136

 

88

 

 

#

200

 

 

#

34

 

67

%

Integration charges (1)

 

16

 

21

 

15

 

2

 

4

 

28

 

6

 

(12

)

(75

)%

(22

)

(79

)%

2

 

 

#

Realized (gains) losses

 

8

 

(5

)

2

 

1

 

(1

)

18

 

 

(9

)

 

#

(18

)

 

#

(2

)

 

#

Pretax operating earnings (loss) (2)

 

$

21

 

$

28

 

$

35

 

$

54

 

$

88

 

$

(18

)

$

142

 

$

67

 

 

#

$

160

 

 

#

$

34

 

63

%

Allocated Equity

 

825

 

784

 

747

 

759

 

752

 

825

 

752

 

(73

)

(9

)%

(73

)

(9

)%

(7

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment margin

 

(0.4

)%

1.4

%

2.1

%

5.8

%

8.8

%

(4.2

)%

7.4

%

9.2

%

 

 

11.6

%

 

 

3.0

%

 

 

Pretax operating margin (2)

 

2.6

%

3.4

%

4.0

%

6.1

%

9.1

%

(1.2

)%

7.7

%

6.5

%

 

 

8.9

%

 

 

3.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on allocated equity (2) (3)

 

(23.8

)%

(18.0

)%

(2.7

)%

6.4

%

14.0

%

(23.8

)%

14.0

%

37.8

%

 

 

37.8

%

 

 

7.6

%

 

 

Operating return on allocated equity (2) (3)

 

3.0

%

2.2

%

3.6

%

11.4

%

17.2

%

3.0

%

17.2

%

14.2

%

 

 

14.2

%

 

 

5.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

$

293

 

$

328

 

$

465

 

$

370

 

$

562

 

$

553

 

$

932

 

$

269

 

92

%

$

379

 

69

%

$

192

 

52

%

Expenses

 

305

 

318

 

395

 

352

 

506

 

573

 

858

 

201

 

66

%

285

 

50

%

154

 

44

%

Pretax segment income (loss)

 

(12

)

10

 

70

 

18

 

56

 

(20

)

74

 

68

 

 

#

94

 

 

#

38

 

 

#

Integration charges (1)

 

9

 

7

 

7

 

5

 

48

 

16

 

53

 

39

 

 

#

37

 

 

#

43

 

 

#

Realized (gains) losses

 

 

 

 

(1

)

 

3

 

(1

)

 

 

(4

)

 

#

1

 

 

#

Pretax operating earnings (loss) (2)

 

$

(3

)

$

17

 

$

77

 

$

22

 

$

104

 

$

(1

)

$

126

 

$

107

 

 

#

$

127

 

 

#

$

82

 

 

#

Allocated Equity

 

1,043

 

1,059

 

1,054

 

1,044

 

1,947

 

1,043

 

1,947

 

904

 

87

%

904

 

87

%

903

 

86

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment margin

 

(4.1

)%

3.0

%

15.1

%

4.9

%

10.0

%

(3.6

)%

7.9

%

14.1

%

 

 

11.5

%

 

 

5.1

%

 

 

Pretax operating margin (2)

 

(1.0

)%

5.2

%

16.6

%

6.0

%

18.5

%

(0.2

)%

13.5

%

19.5

%

 

 

13.7

%

 

 

12.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on allocated equity (2) (3)

 

(0.2

)%

(0.5

)%

3.6

%

5.3

%

8.1

%

(0.2

)%

8.1

%

8.3

%

 

 

8.3

%

 

 

2.8

%

 

 

Operating return on allocated equity (2) (3)

 

1.3

%

1.4

%

5.6

%

7.0

%

11.6

%

1.3

%

11.6

%

10.3

%

 

 

10.3

%

 

 

4.6

%

 

 

 


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

(2) See non-GAAP financial information on page 38.

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

 

# Variance of 100% or greater.

 

12



 

Ameriprise Financial, Inc.

Segment Summary

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

$

562

 

$

591

 

$

620

 

$

602

 

$

630

 

$

1,054

 

$

1,232

 

$

68

 

12

%

$

178

 

17

%

$

28

 

5

%

Expenses

 

468

 

323

 

463

 

482

 

497

 

831

 

979

 

29

 

6

%

148

 

18

%

15

 

3

%

Pretax segment income

 

 

94

 

 

268

 

 

157

 

 

120

 

 

133

 

 

223

 

 

253

 

 

39

 

41

%

 

30

 

13

%

 

13

 

11

%

Realized (gains) losses

 

(8

)

 

(16

)

(3

)

(4

)

(28

)

(7

)

4

 

50

%

21

 

75

%

(1

)

(33

)%

Pretax operating earnings (2)

 

$

86

 

$

268

 

$

141

 

$

117

 

$

129

 

$

195

 

$

246

 

$

43

 

50

%

$

51

 

26

%

$

12

 

10

%

Allocated Equity

 

2,093

 

2,322

 

2,459

 

2,317

 

2,395

 

2,093

 

2,395

 

302

 

14

%

302

 

14

%

78

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment margin

 

16.7

%

45.3

%

25.3

%

19.9

%

21.1

%

21.2

%

20.5

%

4.4

%

 

 

(0.7

)%

 

 

1.2

%

 

 

Pretax operating margin (2)

 

15.5

%

45.3

%

23.3

%

19.5

%

20.6

%

19.0

%

20.1

%

5.1

%

 

 

1.1

%

 

 

1.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on allocated equity (2) (3)

 

(5.0

)%

3.2

%

17.0

%

17.4

%

19.0

%

(5.0

)%

19.0

%

24.0

%

 

 

24.0

%

 

 

1.6

%

 

 

Operating return on allocated equity (2) (3)

 

3.1

%

6.9

%

15.8

%

16.6

%

18.4

%

3.1

%

18.4

%

15.3

%

 

 

15.3

%

 

 

1.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Protection

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

$

497

 

$

450

 

$

528

 

$

507

 

$

521

 

$

993

 

$

1,028

 

$

24

 

5

%

$

35

 

4

%

$

14

 

3

%

Expenses

 

387

 

305

 

399

 

388

 

386

 

771

 

774

 

(1

)

 

3

 

 

(2

)

(1

)%

Pretax segment income

 

 

110

 

 

145

 

 

129

 

 

119

 

 

135

 

 

222

 

 

254

 

 

25

 

23

%

 

32

 

14

%

 

16

 

13

%

Realized (gains) losses

 

1

 

(7

)

(13

)

(1

)

(1

)

(7

)

(2

)

(2

)

 

#

5

 

71

%

 

 

Pretax operating earnings (2)

 

$

111

 

$

138

 

$

116

 

$

118

 

$

134

 

$

215

 

$

252

 

$

23

 

21

%

$

37

 

17

%

$

16

 

14

%

Allocated Equity

 

2,450

 

2,463

 

2,540

 

2,560

 

2,654

 

2,450

 

2,654

 

204

 

8

%

204

 

8

%

94

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment margin

 

22.1

%

32.2

%

24.4

%

23.5

%

25.9

%

22.4

%

24.7

%

3.8

%

 

 

2.3

%

 

 

2.4

%

 

 

Pretax operating margin (2)

 

22.3

%

31.2

%

22.5

%

23.3

%

25.8

%

21.8

%

24.6

%

3.5

%

 

 

2.8

%

 

 

2.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on allocated equity (2) (3)

 

9.7

%

10.7

%

13.2

%

13.2

%

13.5

%

9.7

%

13.5

%

3.8

%

 

 

3.8

%

 

 

0.3

%

 

 

Operating return on allocated equity (2) (3)

 

11.9

%

11.5

%

12.5

%

12.7

%

13.0

%

11.9

%

13.0

%

1.1

%

 

 

1.1

%

 

 

0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate & Other excluding CIEs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

$

(5

)

$

(11

)

$

(11

)

$

21

 

$

(13

)

$

24

 

$

8

 

$

(8

)

 

#

$

(16

)

(67

)%

$

(34

)

 

#

Expenses

 

61

 

84

 

69

 

50

 

69

 

114

 

119

 

8

 

13

%

5

 

4

%

19

 

38

%

Pretax segment (loss)

 

(66

)

(95

)

(80

)

(29

)

(82

)

(90

)

(111

)

(16

)

(24

)%

(21

)

(23

)%

(53

)

 

#

Integration charges (1)

 

 

4

 

 

 

5

 

 

5

 

5

 

 

5

 

 

5

 

 

Realized (gains) losses

 

(7

)

(2

)

9

 

(1

)

(1

)

(7

)

(2

)

6

 

86

%

5

 

71

%

 

 

Pretax operating (loss) (2) (3)

 

$

(73

)

$

(93

)

$

(71

)

$

(30

)

$

(78

)

$

(97

)

$

(108

)

$

(5

)

(7

)%

$

(11

)

(11

)%

$

(48

)

 

#

Allocated Equity

 

2,081

 

2,138

 

2,204

 

2,549

 

1,523

 

2,081

 

1,523

 

(558

)

(27

)%

(558

)

(27

)%

(1,026

)

(40

)%

 


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

(2) See non-GAAP financial information on page 38.

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

 

# Variance of 100% or greater.

 

13



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Second Quarter 2010

 

 

Advice & Wealth Management Segment

 

14



 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

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

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

295

 

$

319

 

$

352

 

$

368

 

$

382

 

$

563

 

$

750

 

$

87

 

29

%

$

187

 

33

%

$

14

 

4

%

Distribution fees

 

423

 

432

 

447

 

436

 

511

 

854

 

947

 

88

 

21

%

93

 

11

%

75

 

17

%

Net investment income

 

82

 

91

 

73

 

74

 

70

 

133

 

144

 

(12

)

(15

)%

11

 

8

%

(4

)

(5

)%

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

23

 

19

 

26

 

22

 

23

 

40

 

45

 

 

 

5

 

13

%

1

 

5

%

Total revenues

 

823

 

861

 

898

 

900

 

986

 

1,590

 

1,886

 

163

 

20

%

296

 

19

%

86

 

10

%

Banking and deposit interest expense

 

38

 

29

 

25

 

21

 

17

 

79

 

38

 

(21

)

(55

)%

(41

)

(52

)%

(4

)

(19

)%

Total net revenues

 

785

 

832

 

873

 

879

 

969

 

1,511

 

1,848

 

184

 

23

%

337

 

22

%

90

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

478

 

504

 

524

 

536

 

588

 

940

 

1,124

 

110

 

23

%

184

 

20

%

52

 

10

%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

310

 

316

 

331

 

292

 

296

 

635

 

588

 

(14

)

(5

)%

(47

)

(7

)%

4

 

1

%

Total expenses

 

788

 

820

 

855

 

828

 

884

 

1,575

 

1,712

 

96

 

12

%

137

 

9

%

56

 

7

%

Pretax segment income (loss)

 

(3

)

12

 

18

 

51

 

85

 

(64

)

136

 

88

 

 

#

200

 

 

#

34

 

67

%

Integration charges included in general and admin expense (1)

 

16

 

21

 

15

 

2

 

4

 

28

 

6

 

(12

)

(75

)%

(22

)

(79

)%

2

 

 

#

Realized (gains) losses included in net investment income

 

8

 

(5

)

2

 

1

 

(1

)

18

 

 

(9

)

 

#

(18

)

 

#

(2

)

 

#

Pretax operating earnings (loss) (2)

 

$

21

 

$

28

 

$

35

 

$

54

 

$

88

 

$

(18

)

$

142

 

$

67

 

 

#

$

160

 

 

#

$

34

 

63

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment margin

 

(0.4

)%

1.4

%

2.1

%

5.8

%

8.8

%

(4.2

)%

7.4

%

9.2

%

 

 

11.6

%

 

 

3.0

%

 

 

Pretax operating margin (2)

 

2.6

%

3.4

%

4.0

%

6.1

%

9.1

%

(1.2

)%

7.7

%

6.5

%

 

 

8.9

%

 

 

3.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

825

 

$

784

 

$

747

 

$

759

 

$

752

 

$

825

 

$

752

 

$

(73

)

(9

)%

$

(73

)

(9

)%

$

(7

)

(1

)%

Return on allocated equity (2) (3)

 

(23.8

)%

(18.0

)%

(2.7

)%

6.4

%

14.0

%

(23.8

)%

14.0

%

37.8

%

 

 

37.8

%

 

 

7.6

%

 

 

Operating return on allocated equity (2) (3)

 

3.0

%

2.2

%

3.6

%

11.4

%

17.2

%

3.0

%

17.2

%

14.2

%

 

 

14.2

%

 

 

5.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

78

 

$

76

 

$

68

 

$

59

 

$

54

 

$

133

 

$

113

 

$

(24

)

(31

)%

$

(20

)

(15

)%

$

(5

)

(8

)%

Realized gains (losses)

 

(8

)

5

 

(2

)

(1

)

1

 

(18

)

 

9

 

 

#

18

 

 

#

2

 

 

#

Other (including seed money)

 

12

 

10

 

7

 

16

 

15

 

18

 

31

 

3

 

25

%

13

 

72

%

(1

)

(6

)%

Total net investment income

 

$

82

 

$

91

 

$

73

 

$

74

 

$

70

 

$

133

 

$

144

 

$

(12

)

(15

)%

$

11

 

8

%

$

(4

)

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

On-balance sheet deposits

 

$

9,180

 

$

8,980

 

$

8,489

 

$

8,501

 

$

8,263

 

$

9,180

 

$

8,263

 

$

(917

)

(10

)%

$

(917

)

(10

)%

$

(238

)

(3

)%

 


(1)  Integration charges incurred for acquisition of HRBFA

(2)  See non-GAAP financial information on page 38.

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

 

# Variance of 100% or greater.

 

15



 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

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

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates and Banking - Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

28

 

$

32

 

$

29

 

$

25

 

$

24

 

$

28

 

$

49

 

$

(4

)

(14

)%

$

21

 

75

%

$

(1

)

(4

)%

Allocated equity

 

$

521

 

$

481

 

$

443

 

$

456

 

$

445

 

$

521

 

$

445

 

$

(76

)

(15

)%

$

(76

)

(15

)%

$

(11

)

(2

)%

Operating return on allocated equity (1) (2)

 

5.2

%

8.6

%

12.2

%

15.3

%

15.2

%

5.2

%

15.2

%

10.0

%

 

 

10.0

%

 

 

(0.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth Management & Distribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings (loss)

 

$

(7

)

$

(4

)

$

6

 

$

29

 

$

64

 

$

(46

)

$

93

 

$

71

 

 

#

$

139

 

 

#

$

35

 

 

#

Allocated equity

 

$

304

 

$

303

 

$

304

 

$

303

 

$

307

 

$

304

 

$

307

 

$

3

 

1

%

$

3

 

1

%

$

4

 

1

%

Operating return on allocated equity (1) (2)

 

0.9

%

(5.4

)%

(8.4

)%

5.1

%

20.3

%

0.9

%

20.3

%

19.4

%

 

 

19.4

%

 

 

15.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded financial plan net cash sales

 

$

50

 

$

47

 

$

58

 

$

52

 

$

51

 

$

99

 

$

103

 

$

1

 

2

%

$

4

 

4

%

$

(1

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Advisors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee advisors

 

2,785

 

2,606

 

2,445

 

2,302

 

2,196

 

2,785

 

2,196

 

(589

)

(21

)%

(589

)

(21

)%

(106

)

(5

)%

Franchisee advisors

 

7,770

 

7,725

 

7,658

 

7,629

 

7,590

 

7,770

 

7,590

 

(180

)

(2

)%

(180

)

(2

)%

(39

)

(1

)%

Total branded financial advisors

 

10,555

 

10,331

 

10,103

 

9,931

 

9,786

 

10,555

 

9,786

 

(769

)

(7

)%

(769

)

(7

)%

(145

)

(1

)%

SAI independent advisors

 

1,953

 

1,983

 

1,933

 

1,906

 

1,898

 

1,953

 

1,898

 

(55

)

(3

)%

(55

)

(3

)%

(8

)

 

Total financial advisors

 

12,508

 

12,314

 

12,036

 

11,837

 

11,684

 

12,508

 

11,684

 

(824

)

(7

)%

(824

)

(7

)%

(153

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

63

 

$

67

 

$

73

 

$

74

 

$

83

 

$

122

 

$

157

 

$

20

 

32

%

$

35

 

29

%

$

9

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisor Retention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee

 

73.4

%

73.7

%

73.7

%

72.9

%

74.4

%

73.4

%

74.4

%

1.0

%

 

 

1.0

%

 

 

1.5

%

 

 

Franchisee

 

91.1

%

91.0

%

91.4

%

91.7

%

92.4

%

91.1

%

92.4

%

1.3

%

 

 

1.3

%

 

 

0.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Client Assets (at period end)

 

$

258,393

 

$

286,590

 

$

294,027

 

$

303,839

 

$

290,163

 

$

258,393

 

$

290,163

 

$

31,770

 

12

%

$

31,770

 

12

%

$

(13,676

)

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Wrap Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

68,181

 

$

78,960

 

$

89,553

 

$

94,921

 

$

99,985

 

$

72,781

 

$

94,921

 

$

31,804

 

47

%

$

22,140

 

30

%

$

5,064

 

5

%

Net flows

 

2,758

 

2,724

 

2,564

 

2,512

 

2,245

 

4,060

 

4,757

 

(513

)

(19

)%

697

 

17

%

(267

)

(11

)%

Market appreciation (depreciation) and other

 

8,021

 

7,869

 

2,804

 

2,552

 

(5,365

)

2,119

 

(2,813

)

(13,386

)

 

#

(4,932

)

 

#

(7,917

)

 

#

Total wrap ending assets

 

$

78,960

 

$

89,553

 

$

94,921

 

$

99,985

 

$

96,865

 

$

78,960

 

$

96,865

 

$

17,905

 

23

%

$

17,905

 

23

%

$

(3,120

)

(3

)%

 


(1)  See non-GAAP financial information on page 38.

(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)

 

Second Quarter 2010

 

 

Asset Management Segment

 

17


 


 

Ameriprise Financial, Inc.

Asset Management Segment

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

231

 

$

270

 

$

396

 

$

307

 

$

471

 

$

440

 

$

778

 

$

240

 

 

#

$

338

 

77

%

$

164

 

53

%

Distribution fees

 

54

 

55

 

60

 

58

 

88

 

101

 

146

 

34

 

63

%

45

 

45

%

30

 

52

%

Net investment income

 

7

 

5

 

8

 

4

 

 

5

 

4

 

(7

)

 

#

(1

)

(20

)%

(4

)

 

#

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

2

 

(1

)

1

 

1

 

4

 

8

 

5

 

2

 

 

#

(3

)

(38

)%

3

 

 

#

Total revenues

 

294

 

329

 

465

 

370

 

563

 

554

 

933

 

269

 

91

%

379

 

68

%

193

 

52

%

Banking and deposit interest expense

 

1

 

1

 

 

 

1

 

1

 

1

 

 

 

 

 

1

 

 

Total net revenues

 

293

 

328

 

465

 

370

 

562

 

553

 

932

 

269

 

92

%

379

 

69

%

192

 

52

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

85

 

97

 

107

 

106

 

186

 

167

 

292

 

101

 

 

#

125

 

75

%

80

 

75

%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

6

 

5

 

4

 

6

 

5

 

12

 

11

 

(1

)

(17

)%

(1

)

(8

)%

(1

)

(17

)%

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

214

 

216

 

284

 

240

 

315

 

394

 

555

 

101

 

47

%

161

 

41

%

75

 

31

%

Total expenses

 

305

 

318

 

395

 

352

 

506

 

573

 

858

 

201

 

66

%

285

 

50

%

154

 

44

%

Pretax segment income (loss)

 

(12

)

10

 

70

 

18

 

56

 

(20

)

74

 

68

 

 

#

94

 

 

#

38

 

 

#

Integration charges included in general and admin expense (1)

 

9

 

7

 

7

 

5

 

48

 

16

 

53

 

39

 

 

#

37

 

 

#

43

 

 

#

Realized (gains) losses included in net investment income

 

 

 

 

(1

)

 

3

 

(1

)

 

 

(4

)

 

#

1

 

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings (loss) (2)

 

$

(3

)

$

17

 

$

77

 

$

22

 

$

104

 

$

(1

)

$

126

 

$

107

 

 

#

$

127

 

 

#

$

82

 

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment margin

 

(4.1

)%

3.0

%

15.1

%

4.9

%

10.0

%

(3.6

)%

7.9

%

14.1

%

 

 

11.5

%

 

 

5.1

%

 

 

Pretax operating margin (2)

 

(1.0

)%

5.2

%

16.6

%

6.0

%

18.5

%

(0.2

)%

13.5

%

19.5

%

 

 

13.7

%

 

 

12.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

1,043

 

$

1,059

 

$

1,054

 

$

1,044

 

$

1,947

 

$

1,043

 

$

1,947

 

$

904

 

87

%

$

904

 

87

%

$

903

 

86

%

Return on allocated equity (2) (3)

 

(0.2

)%

(0.5

)%

3.6

%

5.3

%

8.1

%

(0.2

)%

8.1

%

8.3

%

 

 

8.3

%

 

 

2.8

%

 

 

Operating return on allocated equity (2) (3)

 

1.3

%

1.4

%

5.6

%

7.0

%

11.6

%

1.3

%

11.6

%

10.3

%

 

 

10.3

%

 

 

4.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

1

 

$

 

$

1

 

$

 

$

1

 

$

1

 

$

1

 

$

 

 

$

 

 

$

1

 

 

Realized gains (losses)

 

 

 

 

1

 

 

(3

)

1

 

 

 

4

 

 

#

(1

)

 

#

Other (including seed money)

 

6

 

5

 

7

 

3

 

(1

)

7

 

2

 

(7

)

 

#

(5

)

(71

)%

(4

)

 

#

Total net investment income

 

$

7

 

$

5

 

$

8

 

$

4

 

$

 

$

5

 

$

4

 

$

(7

)

 

#

$

(1

)

(20

)%

$

(4

)

 

#

 


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

(2) See non-GAAP financial information on page 38.

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

 

18



 

Ameriprise Financial, Inc.

Asset Management Segment

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Total Managed Asset net flows

 

$

45

 

$

2,324

 

$

1,385

 

$

(834

)

$

(5,672

)

$

(102

)

$

(6,506

)

$

(5,717

)

 

#

$

(6,404

)

 

#

$

(4,838

)

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Managed Assets Reconciliations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic managed assets

 

$

134,831

 

$

145,790

 

$

149,004

 

$

152,624

 

$

327,406

 

$

134,831

 

$

327,406

 

$

192,575

 

 

#

$

192,575

 

 

#

$

174,782

 

 

#

International managed assets

 

82,490

 

93,682

 

97,823

 

97,135

 

89,319

 

82,490

 

89,319

 

6,829

 

8

%

6,829

 

8

%

(7,816

)

(8

)%

Less: Sub-advised eliminations

 

(3,176

)

(3,494

)

(3,647

)

(3,752

)

(3,398

)

(3,176

)

(3,398

)

(222

)

(7

)%

(222

)

(7

)%

354

 

9

%

Total managed assets

 

$

214,145

 

$

235,978

 

$

243,180

 

$

246,007

 

$

413,327

 

$

214,145

 

$

413,327

 

$

199,182

 

93

%

$

199,182

 

93

%

$

167,320

 

68

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed assets - external clients

 

$

151,284

 

$

168,183

 

$

173,902

 

$

168,673

 

$

320,472

 

$

151,284

 

$

320,472

 

$

169,188

 

 

#

$

169,188

 

 

#

$

151,799

 

90

%

Managed assets - consolidated client assets

 

459

 

648

 

1,099

 

6,916

 

6,784

 

459

 

6,784

 

6,325

 

 

#

6,325

 

 

#

(132

)

(2

)%

Managed assets - owned

 

62,402

 

67,147

 

68,179

 

70,418

 

86,071

 

62,402

 

86,071

 

23,669

 

38

%

23,669

 

38

%

15,653

 

22

%

Total managed assets

 

$

214,145

 

$

235,978

 

$

243,180

 

$

246,007

 

$

413,327

 

$

214,145

 

$

413,327

 

$

199,182

 

93

%

$

199,182

 

93

%

$

167,320

 

68

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Managed Assets by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

$

78,910

 

$

94,539

 

$

98,712

 

$

99,752

 

$

189,734

 

$

78,910

 

$

189,734

 

$

110,824

 

 

#

$

110,824

 

 

#

$

89,982

 

90

%

Fixed income

 

103,773

 

110,991

 

113,752

 

115,922

 

192,988

 

103,773

 

192,988

 

89,215

 

86

%

89,215

 

86

%

77,066

 

66

%

Money market

 

10,117

 

9,053

 

7,986

 

7,231

 

7,159

 

10,117

 

7,159

 

(2,958

)

(29

)%

(2,958

)

(29

)%

(72

)

(1

)%

Alternative

 

11,330

 

11,662

 

11,590

 

11,808

 

11,516

 

11,330

 

11,516

 

186

 

2

%

186

 

2

%

(292

)

(2

)%

Hybrid and other

 

10,015

 

9,733

 

11,140

 

11,294

 

11,930

 

10,015

 

11,930

 

1,915

 

19

%

1,915

 

19

%

636

 

6

%

Total managed assets by type

 

$

214,145

 

$

235,978

 

$

243,180

 

$

246,007

 

$

413,327

 

$

214,145

 

$

413,327

 

$

199,182

 

93

%

$

199,182

 

93

%

$

167,320

 

68

%

 


# Variance of 100% or greater.

 

19



 

Ameriprise Financial, Inc.

Asset Management Segment - Domestic

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Domestic Managed Assets Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

59,832

 

$

66,010

 

$

74,592

 

$

76,860

 

$

78,631

 

$

63,970

 

$

76,860

 

$

18,799

 

31

%

$

12,890

 

20

%

$

1,771

 

2

%

Net flows mutual funds and other retail funds

 

(1,055

)

(753

)

(866

)

(1,127

)

(2,361

)

(2,565

)

(3,488

)

(1,306

)

 

#

(923

)

(36

)%

(1,234

)

 

#

Net flows VP & VIT funds

 

194

 

1,052

 

301

 

31

 

108

 

446

 

139

 

(86

)

(44

)%

(307

)

(69

)%

77

 

 

#

Net flows

 

(861

)

299

 

(565

)

(1,096

)

(2,253

)

(2,119

)

(3,349

)

(1,392

)

 

#

(1,230

)

(58

)%

(1,157

)

 

#

Market appreciation (depreciation) and other (1)

 

7,039

 

8,283

 

2,833

 

2,867

 

113,766

 

4,159

 

116,633

 

106,727

 

 

#

112,474

 

 

#

110,899

 

 

#

Total ending assets

 

66,010

 

74,592

 

76,860

 

78,631

 

190,144

 

66,010

 

190,144

 

124,134

 

 

#

124,134

 

 

#

111,513

 

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of total retail asset sub-advised

 

5.7

%

7.2

%

7.0

%

7.1

%

18.3

%

5.7

%

18.3

%

12.5

%

 

 

12.5

%

 

 

11.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

56,473

 

59,850

 

61,672

 

62,496

 

64,083

 

54,775

 

62,496

 

7,610

 

13

%

7,721

 

14

%

1,587

 

3

%

Net flows

 

388

 

(773

)

1,020

 

47

 

(2,461

)

2,444

 

(2,414

)

(2,849

)

 

#

(4,858

)

 

#

(2,508

)

 

#

Market appreciation (depreciation) and other (2)(3)

 

2,989

 

2,595

 

(196

)

1,540

 

65,828

 

2,631

 

67,368

 

62,839

 

 

#

64,737

 

 

#

64,288

 

 

#

Total ending assets

 

59,850

 

61,672

 

62,496

 

64,083

 

127,450

 

59,850

 

127,450

 

67,600

 

 

#

67,600

 

 

#

63,367

 

99

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

9,048

 

9,131

 

9,666

 

9,791

 

10,063

 

9,378

 

9,791

 

1,015

 

11

%

413

 

4

%

272

 

3

%

Net flows

 

48

 

322

 

66

 

193

 

132

 

(575

)

325

 

84

 

 

#

900

 

 

#

(61

)

(32

)%

Market appreciation (depreciation) and other

 

35

 

213

 

59

 

79

 

(238

)

328

 

(159

)

(273

)

 

#

(487

)

 

#

(317

)

 

#

Total ending assets

 

9,131

 

9,666

 

9,791

 

10,063

 

9,957

 

9,131

 

9,957

 

826

 

9

%

826

 

9

%

(106

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and Eliminations

 

(160

)

(140

)

(143

)

(153

)

(145

)

(160

)

(145

)

15

 

9

%

15

 

9

%

8

 

5

%

Total Domestic managed assets

 

$

134,831

 

$

145,790

 

$

149,004

 

$

152,624

 

$

327,406

 

$

134,831

 

$

327,406

 

$

192,575

 

 

#

$

192,575

 

 

#

$

174,782

 

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Domestic net flows

 

$

(425

)

$

(152

)

$

521

 

$

(856

)

$

(4,582

)

$

(250

)

$

(5,438

)

$

(4,157

)

 

#

$

(5,188

)

 

#

$

(3,726

)

 

#

 


(1)   Included in Market appreciation (depreciation) and other, for Retail funds in the 2nd quarter of 2010, are $118.1B due to the acquisition of Columbia Management, including $3 billion of assets that were transferred to RiverSource Sub-advised through the implementation of Enhanced Portfolio Navigator, and an additional $13.1B of EPN related assets sub-advised by others.

(2)   Included in Market appreciation (depreciation) and other, for Institutional funds in the 2nd quarter of 2010, are $68.4B due to the acquisition of Columbia Management.

(3)   Included in Market appreciation (depreciation) and other for all periods shown are changes in assets related to corporate capital decision including share repurchases, debt repurchases, equity issuance, debt issuance and acquisitions.

 

#       Variance of 100% or greater.

 

20



 

Ameriprise Financial, Inc.

Asset Management Segment - International

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

International Managed Assets Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

15,651

 

$

22,107

 

$

26,565

 

$

29,090

 

$

30,393

 

$

16,361

 

$

29,090

 

$

14,742

 

94

%

$

12,729

 

78

%

$

1,303

 

4

%

Net flows

 

1,224

 

1,447

 

1,483

 

1,344

 

(488

)

1,866

 

856

 

(1,712

)

 

#

(1,010

)

(54

)%

(1,832

)

 

#

Market appreciation (depreciation)

 

545

 

3,673

 

707

 

1,665

 

(2,172

)

(509

)

(507

)

(2,717

)

 

#

2

 

 

(3,837

)

 

#

Foreign currency translation (1)

 

2,517

 

(745

)

297

 

(1,769

)

(540

)

2,187

 

(2,309

)

(3,057

)

 

#

(4,496

)

 

#

1,229

 

69

%

Other (2)

 

2,170

 

83

 

38

 

63

 

98

 

2,202

 

161

 

(2,072

)

(95

)%

(2,041

)

(93

)%

35

 

56

%

Total ending assets

 

22,107

 

26,565

 

29,090

 

30,393

 

27,291

 

22,107

 

27,291

 

5,184

 

23

%

5,184

 

23

%

(3,102

)

(10

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

50,179

 

58,347

 

65,120

 

66,934

 

64,997

 

55,342

 

66,934

 

14,818

 

30

%

11,592

 

21

%

(1,937

)

(3

)%

Net flows

 

(675

)

943

 

(384

)

(1,300

)

(692

)

(1,952

)

(1,992

)

(17

)

(3

)%

(40

)

(2

)%

608

 

47

%

Market appreciation (depreciation)

 

636

 

7,224

 

930

 

3,014

 

(3,317

)

(2,512

)

(303

)

(3,953

)

 

#

2,209

 

88

%

(6,331

)

 

#

Foreign currency translation (1)

 

7,595

 

(1,873

)

784

 

(4,036

)

(1,062

)

6,485

 

(5,098

)

(8,657

)

 

#

(11,583

)

 

#

2,974

 

74

%

Other

 

612

 

479

 

484

 

385

 

543

 

984

 

928

 

(69

)

(11

)%

(56

)

(6

)%

158

 

41

%

Total ending assets

 

58,347

 

65,120

 

66,934

 

64,997

 

60,469

 

58,347

 

60,469

 

2,122

 

4

%

2,122

 

4

%

(4,528

)

(7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

2,510

 

2,036

 

1,997

 

1,799

 

1,745

 

2,544

 

1,799

 

(765

)

(30

)%

(745

)

(29

)%

(54

)

(3

)%

Net flows

 

(79

)

86

 

(235

)

(22

)

90

 

234

 

68

 

169

 

 

#

(166

)

(71

)%

112

 

 

#

Market appreciation (depreciation)

 

(700

)

(66

)

4

 

65

 

(260

)

(995

)

(195

)

440

 

63

%

800

 

80

%

(325

)

 

#

Foreign currency translation (1)

 

305

 

(59

)

29

 

(108

)

(30

)

253

 

(138

)

(335

)

 

#

(391

)

 

#

78

 

72

%

Other

 

 

 

4

 

11

 

14

 

 

25

 

14

 

 

25

 

 

3

 

27

%

Total ending assets

 

2,036

 

1,997

 

1,799

 

1,745

 

1,559

 

2,036

 

1,559

 

(477

)

(23

)%

(477

)

(23

)%

(186

)

(11

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total International managed assets

 

$

82,490

 

$

93,682

 

$

97,823

 

$

97,135

 

$

89,319

 

$

82,490

 

$

89,319

 

$

6,829

 

8

%

$

6,829

 

8

%

$

(7,816

)

(8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total International net flows

 

$

470

 

$

2,476

 

$

864

 

$

22

 

$

(1,090

)

$

148

 

$

(1,068

)

$

(1,560

)

 

#

$

(1,216

)

 

#

$

(1,112

)

 

#

 


(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

Second Quarter 2010

 

 

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

Mutual Fund Performance

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

 

 

 

 

 

 

 

 

 

 

Equal Weighted Mutual Fund Rankings in top 2 Lipper Quartiles

 

 

 

 

 

 

 

 

 

 

 

Equity - 12 month

 

37

%

49

%

51

%

58

%

49

%

Fixed income - 12 month

 

74

%

58

%

65

%

50

%

52

%

Equity - 3 year

 

42

%

41

%

42

%

45

%

48

%

Fixed income - 3 year

 

79

%

72

%

72

%

68

%

68

%

Equity - 5 year

 

59

%

67

%

63

%

71

%

75

%

Fixed income - 5 year

 

64

%

58

%

58

%

63

%

75

%

 

 

 

 

 

 

 

 

 

 

 

 

Asset Weighted Mutual Fund Rankings in top 2 Lipper Quartiles

 

 

 

 

 

 

 

 

 

 

 

Equity - 12 month

 

39

%

52

%

72

%

78

%

73

%

Fixed income - 12 month

 

42

%

61

%

80

%

51

%

45

%

Equity - 3 year

 

40

%

51

%

50

%

56

%

61

%

Fixed income - 3 year

 

47

%

65

%

63

%

59

%

64

%

Equity - 5 year

 

67

%

74

%

69

%

75

%

88

%

Fixed income - 5 year

 

39

%

61

%

58

%

58

%

65

%

 

 

 

 

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Equity - 12 month

 

69

%

64

%

38

%

31

%

62

%

Fixed income - 12 month

 

73

%

82

%

60

%

60

%

40

%

Equity - 3 year

 

93

%

89

%

90

%

93

%

97

%

Fixed income - 3 year

 

73

%

64

%

80

%

80

%

80

%

Equity - 5 year

 

89

%

85

%

89

%

93

%

93

%

Fixed income - 5 year

 

70

%

70

%

78

%

78

%

67

%

 

Beginning in the second quarter of 2010, mutual fund performance rankings are based on the performance of Class A fund shares for legacy RiverSource (including Seligman and Threadneedle) branded funds and on Class Z fund shares for legacy Columbia branded funds, as the majority of fund assets managed within the funds of each fund family are generally held in the designated share class. Prior to second quarter of 2010, the mutual fund performance rankings were based solely on the performance of the legacy RiverSource Class A fund shares.

 

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

 

Asset Weighted Rankings in Top 2 Quartiles: Sums the assets of the funds with above median ranking (RiverSource Class A and Columbia Class Z)  divided by the total sum of RiverSource Class A assets and Columbia Class Z 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)

 

Second Quarter 2010

 

 

Annuities Segment

 

23



 

Ameriprise Financial, Inc.

Annuities Segment

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009 

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

104

 

$

118

 

$

126

 

$

127

 

$

130

 

$

194

 

$

257

 

$

26

 

25

%

$

63

 

32

%

$

3

 

2

%

Distribution fees

 

58

 

64

 

68

 

70

 

76

 

115

 

146

 

18

 

31

%

31

 

27

%

6

 

9

%

Net investment income

 

339

 

343

 

352

 

330

 

330

 

628

 

660

 

(9

)

(3

)%

32

 

5

%

 

 

Premiums

 

23

 

25

 

32

 

31

 

42

 

47

 

73

 

19

 

83

%

26

 

55

%

11

 

35

%

Other revenues

 

38

 

41

 

42

 

44

 

52

 

70

 

96

 

14

 

37

%

26

 

37

%

8

 

18

%

Total revenues

 

562

 

591

 

620

 

602

 

630

 

1,054

 

1,232

 

68

 

12

%

178

 

17

%

28

 

5

%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

562

 

591

 

620

 

602

 

630

 

1,054

 

1,232

 

68

 

12

%

178

 

17

%

28

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

49

 

49

 

57

 

61

 

70

 

105

 

131

 

21

 

43

%

26

 

25

%

9

 

15

%

Interest credited to fixed accounts

 

201

 

196

 

193

 

192

 

194

 

370

 

386

 

(7

)

(3

)%

16

 

4

%

2

 

1

%

Benefits, claims, losses and settlement expenses

 

351

 

93

 

103

 

118

 

58

 

222

 

176

 

(293

)

(83

)%

(46

)

(21

)%

(60

)

(51

)%

Amortization of deferred acquisition costs

 

(182

)

(64

)

64

 

60

 

121

 

37

 

181

 

303

 

 

#

144

 

 

#

61

 

 

#

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

49

 

49

 

46

 

51

 

54

 

97

 

105

 

5

 

10

%

8

 

8

%

3

 

6

%

Total expenses

 

468

 

323

 

463

 

482

 

497

 

831

 

979

 

29

 

6

%

148

 

18

%

15

 

3

%

Pretax segment income

 

94

 

268

 

157

 

120

 

133

 

223

 

253

 

39

 

41

%

30

 

13

%

13

 

11

%

Realized (gains) losses included in net investment income

 

(8

)

 

(16

)

(3

)

(4

)

(28

)

(7

)

4

 

50

%

21

 

75

%

(1

)

(33

)%

Pretax operating earnings (1)

 

$

86

 

$

268

 

$

141

 

$

117

 

$

129

 

$

195

 

$

246

 

$

43

 

50

%

$

51

 

26

%

$

12

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment margin

 

16.7

%

45.3

%

25.3

%

19.9

%

21.1

%

21.2

%

20.5

%

4.4

%

 

 

(0.7

)%

 

 

1.2

%

 

 

Pretax operating margin (1)

 

15.5

%

45.3

%

23.3

%

19.5

%

20.6

%

19.0

%

20.1

%

5.1

%

 

 

1.1

%

 

 

1.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

2,093

 

$

2,322

 

$

2,459

 

$

2,317

 

$

2,395

 

$

2,093

 

$

2,395

 

$

302

 

14

%

$

302

 

14

%

$

78

 

3

%

Return on allocated equity (1) (2)

 

(5.0

)%

3.2

%

17.0

%

17.4

%

19.0

%

(5.0

)%

19.0

%

24.0

%

 

 

24.0

%

 

 

1.6

%

 

 

Operating return on allocated equity (1) (2)

 

3.1

%

6.9

%

15.8

%

16.6

%

18.4

%

3.1

%

18.4

%

15.3

%

 

 

15.3

%

 

 

1.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

314

 

$

336

 

$

337

 

$

324

 

$

323

 

$

573

 

$

647

 

$

9

 

3

%

$

74

 

13

%

$

(1

)

 

Realized gains (losses)

 

8

 

 

16

 

3

 

4

 

28

 

7

 

(4

)

(50

)%

(21

)

(75

)%

1

 

33

%

Other (including seed money)

 

17

 

7

 

(1

)

3

 

3

 

27

 

6

 

(14

)

(82

)%

(21

)

(78

)%

 

 

Total net investment income

 

$

339

 

$

343

 

$

352

 

$

330

 

$

330

 

$

628

 

$

660

 

$

(9

)

(3

)%

$

32

 

5

%

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net variable annuity living benefits market impact (3)

 

$

(360

)

$

(66

)

$

(3

)

$

(24

)

$

74

 

$

(93

)

$

50

 

$

434

 

 

#

$

143

 

 

#

$

98

 

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total annuity net flows

 

$

1,129

 

$

527

 

$

255

 

$

(68

)

$

9

 

$

2,908

 

$

(59

)

$

(1,120

)

(99

)%

$

(2,967

)

 

#

$

77

 

 

#

 


(1)  See non-GAAP financial information on page 38.

(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

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

 

$

34

 

$

189

 

$

82

 

$

57

 

$

68

 

$

115

 

$

125

 

$

34

 

 

#

$

10

 

9

%

$

11

 

19

%

Allocated equity

 

$

801

 

$

988

 

$

1,005

 

$

971

 

$

1,083

 

$

801

 

$

1,083

 

$

282

 

35

%

$

282

 

35

%

$

112

 

12

%

Operating return on allocated equity (1) (2)

 

1.9

%

6.3

%

24.1

%

24.2

%

26.5

%

1.9

%

26.5

%

24.6

%

 

 

24.6

%

 

 

2.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Annuities (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

 

$

52

 

$

79

 

$

59

 

$

60

 

$

61

 

$

80

 

$

121

 

$

9

 

17

%

$

41

 

51

%

$

1

 

2

%

Allocated equity

 

$

1,292

 

$

1,334

 

$

1,454

 

$

1,346

 

$

1,312

 

$

1,292

 

$

1,312

 

$

20

 

2

%

$

20

 

2

%

$

(34

)

(3

)%

Operating return on allocated equity (1) (2)

 

14.4

%

16.0

%

9.8

%

11.4

%

12.5

%

14.4

%

12.5

%

(1.9

)%

 

 

(1.9

)%

 

 

1.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

41,468

 

$

47,104

 

$

52,995

 

$

55,106

 

$

56,978

 

$

43,280

 

$

55,106

 

$

15,510

 

37

%

$

11,826

 

27

%

$

1,872

 

3

%

Deposits

 

1,411

 

1,435

 

1,378

 

1,181

 

1,411

 

2,733

 

2,592

 

 

 

(141

)

(5

)%

230

 

19

%

Withdrawals and terminations

 

(844

)

(909

)

(980

)

(1,083

)

(1,212

)

(1,838

)

(2,295

)

(368

)

(44

)%

(457

)

(25

)%

(129

)

(12

)%

Net flows

 

567

 

526

 

398

 

98

 

199

 

895

 

297

 

(368

)

(65

)%

(598

)

(67

)%

101

 

 

#

Investment performance and interest credited

 

5,060

 

5,365

 

1,713

 

1,859

 

(3,150

)

2,923

 

(1,291

)

(8,210

)

 

#

(4,214

)

 

#

(5,009

)

 

#

Other

 

9

 

 

 

(85

)

(2

)

6

 

(87

)

(11

)

 

#

(93

)

 

#

83

 

98

%

Total ending balance - contract accumulation values

 

$

47,104

 

$

52,995

 

$

55,106

 

$

56,978

 

$

54,025

 

$

47,104

 

$

54,025

 

$

6,921

 

15

%

$

6,921

 

15

%

$

(2,953

)

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable annuities fixed sub-accounts

 

$

5,987

 

$

6,036

 

$

6,124

 

$

6,119

 

$

4,914

 

$

5,987

 

$

4,914

 

$

(1,073

)

(18

)%

$

(1,073

)

(18

)%

$

(1,205

)

(20

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Annuities Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

13,805

 

$

14,464

 

$

14,615

 

$

14,623

 

$

14,599

 

$

12,228

 

$

14,623

 

$

794

 

6

%

$

2,395

 

20

%

$

(24

)

 

Deposits

 

974

 

343

 

167

 

163

 

130

 

3,071

 

293

 

(844

)

(87

)%

(2,778

)

(90

)%

(33

)

(20

)%

Withdrawals and terminations

 

(412

)

(342

)

(310

)

(329

)

(320

)

(1,058

)

(649

)

92

 

22

%

409

 

39

%

9

 

3

%

Net flows

 

562

 

1

 

(143

)

(166

)

(190

)

2,013

 

(356

)

(752

)

 

#

(2,369

)

 

#

(24

)

(14

)%

Policyholder interest credited

 

145

 

151

 

151

 

142

 

138

 

271

 

280

 

(7

)

(5

)%

9

 

3

%

(4

)

(3

)%

Other

 

(48

)

(1

)

 

 

 

(48

)

 

48

 

 

#

48

 

 

#

 

 

Total ending balance - contract accumulation values

 

$

14,464

 

$

14,615

 

$

14,623

 

$

14,599

 

$

14,547

 

$

14,464

 

$

14,547

 

$

83

 

1

%

$

83

 

1

%

$

(52

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized Interest

 

$

10

 

$

9

 

$

8

 

$

5

 

$

3

 

$

20

 

$

8

 

$

(7

)

(70

)%

$

(12

)

(60

)%

$

(2

)

(40

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payout Annuities Reserve Balance

 

$

2,115

 

$

2,104

 

$

2,102

 

$

2,094

 

$

2,105

 

$

2,115

 

$

2,105

 

$

(10

)

 

$

(10

)

 

$

11

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Equivalent Spread - Fixed Annuities (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross rate of return on invested assets (5)(6)

 

6.3

%

6.4

%

6.1

%

6.0

%

6.1

%

5.9

%

6.1

%

(0.2

)%

 

 

0.2

%

 

 

0.1

%

 

 

Crediting rate excluding capitalized interest

 

(4.0

)%

(4.0

)%

(3.9

)%

(3.9

)%

(3.9

)%

(3.9

)%

(3.9

)%

0.1

%

 

 

 

 

 

 

 

 

Tax equivalent margin spread

 

2.3

%

2.4

%

2.2

%

2.1

%

2.2

%

2.0

%

2.2

%

(0.1

)%

 

 

0.2

%

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Variable Annuities DAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,894

 

$

2,060

 

$

2,116

 

$

2,132

 

$

2,121

 

$

2,063

 

$

2,132

 

$

227

 

12

%

$

69

 

3

%

$

(11

)

(1

)%

Capitalization

 

68

 

68

 

64

 

53

 

77

 

129

 

130

 

9

 

13

%

1

 

1

%

24

 

45

%

Amortization per income statement

 

200

 

70

 

(48

)

(46

)

(104

)

(7

)

(150

)

(304

)

 

#

(143

)

 

#

(58

)

 

#

Other

 

(102

)

(82

)

 

(18

)

(12

)

(125

)

(30

)

90

 

88

%

95

 

76

%

6

 

33

%

Total ending balance

 

$

2,060

 

$

2,116

 

$

2,132

 

$

2,121

 

$

2,082

 

$

2,060

 

$

2,082

 

$

22

 

1

%

$

22

 

1

%

$

(39

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Annuities DAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

366

 

$

389

 

$

304

 

$

301

 

$

247

 

$

316

 

$

301

 

$

(119

)

(33

)%

$

(15

)

(5

)%

$

(54

)

(18

)%

Capitalization

 

46

 

19

 

8

 

7

 

6

 

145

 

13

 

(40

)

(87

)%

(132

)

(91

)%

(1

)

(14

)%

Amortization per income statement

 

(18

)

(6

)

(16

)

(14

)

(17

)

(30

)

(31

)

1

 

6

%

(1

)

(3

)%

(3

)

(21

)%

Other

 

(5

)

(98

)

5

 

(47

)

(38

)

(42

)

(85

)

(33

)

 

#

(43

)

 

#

9

 

19

%

Total ending balance

 

$

389

 

$

304

 

$

301

 

$

247

 

$

198

 

$

389

 

$

198

 

$

(191

)

(49

)%

$

(191

)

(49

)%

$

(49

)

(20

)%

 


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

(2)        See non-GAAP financial information on page 38.

(3)        Includes payout annuities.

(4)        Attributable to interest sensitive products only, which have been approximately 98% to 99% 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.

(6)        In the 2nd quarter of 2010, the gross rate of return on invested assets is impacted by outstanding repurchase agreements. Without these positions, the gross rate of return on invested assets would be 6.0%

#         Variance of 100% or greater.

25


 


 

GRAPHIC

 

 

Statistical Supplement Package

(unaudited)

 

Second Quarter 2010

 

 

Protection Segment

 

26


 


 

Ameriprise Financial, Inc.

Protection Segment

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

11

 

$

13

 

$

13

 

$

13

 

$

13

 

$

21

 

$

26

 

$

2

 

18

%

$

5

 

24

%

$

 

 

Distribution fees

 

24

 

24

 

25

 

24

 

24

 

48

 

48

 

 

 

 

 

 

 

Net investment income

 

97

 

112

 

113

 

103

 

111

 

197

 

214

 

14

 

14

%

17

 

9

%

8

 

8

%

Premiums

 

254

 

257

 

262

 

257

 

264

 

501

 

521

 

10

 

4

%

20

 

4

%

7

 

3

%

Other revenues

 

111

 

44

 

116

 

110

 

109

 

226

 

219

 

(2

)

(2

)% 

(7

)

(3

)% 

(1

)

(1

)%

Total revenues

 

497

 

450

 

529

 

507

 

521

 

993

 

1,028

 

24

 

5

%

35

 

4

%

14

 

3

%

Banking and deposit interest expense

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

497

 

450

 

528

 

507

 

521

 

993

 

1,028

 

24

 

5

%

35

 

4

%

14

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

6

 

4

 

7

 

8

 

9

 

11

 

17

 

3

 

50

%

6

 

55

%

1

 

13

%

Interest credited to fixed accounts

 

36

 

36

 

36

 

36

 

37

 

72

 

73

 

1

 

3

%

1

 

1

%

1

 

3

%

Benefits, claims, losses and settlement expenses

 

236

 

213

 

246

 

236

 

240

 

465

 

476

 

4

 

2

%

11

 

2

%

4

 

2

%

Amortization of deferred acquisition costs

 

51

 

(5

)

52

 

52

 

45

 

112

 

97

 

(6

)

(12

)%

(15

)

(13

)%

(7

)

(13

)%

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

58

 

57

 

58

 

56

 

55

 

111

 

111

 

(3

)

(5

)%

 

 

(1

)

(2

)%

Total expenses

 

387

 

305

 

399

 

388

 

386

 

771

 

774

 

(1

)

 

3

 

 

(2

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment income

 

110

 

145

 

129

 

119

 

135

 

222

 

254

 

25

 

23

%

32

 

14

%

16

 

13

%

Realized (gains) losses included in net investment income

 

1

 

(7

)

(13

)

(1

)

(1

)

(7

)

(2

)

(2

)

 

#

5

 

71

%

 

 

Pretax operating earnings (1)

 

$

111

 

$

138

 

$

116

 

$

118

 

$

134

 

$

215

 

$

252

 

$

23

 

21

%

$

37

 

17

%

$

16

 

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment margin

 

22.1

%

32.2

%

24.4

%

23.5

%

25.9

%

22.4

%

24.7

%

3.8

%

 

 

2.3

%

 

 

2.4

%

 

 

Pretax operating margin (1)

 

22.3

%

31.2

%

22.5

%

23.3

%

25.8

%

21.8

%

24.6

%

3.5

%

 

 

2.8

%

 

 

2.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

2,450

 

$

2,463

 

$

2,540

 

$

2,560

 

$

2,654

 

$

2,450

 

$

2,654

 

$

204

 

8

%

$

204

 

8

%

$

94

 

4

%

Return on allocated equity (1) (2)

 

9.7

%

10.7

%

13.2

%

13.2

%

13.5

%

9.7

%

13.5

%

3.8

%

 

 

3.8

%

 

 

0.3

%

 

 

Operating return on allocated equity (1) (2)

 

11.9

%

11.5

%

12.5

%

12.7

%

13.0

%

11.9

%

13.0

%

1.1

%

 

 

1.1

%

 

 

0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

85

 

$

94

 

$

93

 

$

95

 

$

101

 

$

166

 

$

196

 

$

16

 

19

%

$

30

 

18

%

$

6

 

6

%

Realized gains (losses)

 

(1

)

7

 

13

 

1

 

1

 

7

 

2

 

2

 

 

#

(5

)

(71

)%

 

 

Other (including seed money)

 

13

 

11

 

7

 

7

 

9

 

24

 

16

 

(4

)

(31

)%

(8

)

(33

)%

2

 

29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net investment income

 

$

97

 

$

112

 

$

113

 

$

103

 

$

111

 

$

197

 

$

214

 

$

14

 

14

%

$

17

 

9

%

$

8

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long Term Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

 

$

5

 

$

9

 

$

12

 

$

14

 

$

6

 

$

15

 

$

20

 

$

1

 

20

%

$

5

 

33

%

$

(8

)

(57

)%

Allocated equity

 

$

578

 

$

590

 

$

620

 

$

622

 

$

636

 

$

578

 

$

636

 

$

58

 

10

%

$

58

 

10

%

$

14

 

2

%

Operating return on allocated equity (1) (2)

 

1.9

%

3.1

%

4.0

%

4.4

%

4.4

%

1.9

%

4.4

%

2.5

%

 

 

2.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Protection excluding Long Term Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

 

$

106

 

$

129

 

$

104

 

$

104

 

$

128

 

$

200

 

$

232

 

$

22

 

21

%

$

32

 

16

%

$

24

 

23

%

Allocated equity

 

$

1,872

 

$

1,873

 

$

1,920

 

$

1,938

 

$

2,018

 

$

1,872

 

$

2,018

 

$

146

 

8

%

$

146

 

8

%

$

80

 

4

%

Operating return on allocated equity (1) (2)

 

15.1

%

14.2

%

15.2

%

15.3

%

15.7

%

15.1

%

15.7

%

0.6

%

 

 

0.6

%

 

 

0.4

%

 

 

 


(1) See non-GAAP financial information on page 38.

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

 

#  Variance of 100% or greater.

 

27


 


 

Ameriprise Financial, Inc.

Protection Segment

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Cash Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL (1)

 

$

45

 

$

55

 

$

56

 

$

54

 

$

59

 

$

78

 

$

113

 

$

14

 

31

%

$

35

 

45

%

$

5

 

9

%

Term and whole life

 

4

 

4

 

4

 

3

 

3

 

7

 

6

 

(1

)

(25

)%

(1

)

(14

)%

 

 

Disability insurance

 

3

 

1

 

2

 

1

 

2

 

4

 

3

 

(1

)

(33

)%

(1

)

(25

)%

1

 

 

#

Auto and Home

 

165

 

178

 

166

 

177

 

177

 

330

 

354

 

12

 

7

%

24

 

7

%

 

 

Total cash sales

 

$

217

 

$

238

 

$

228

 

$

235

 

$

241

 

$

419

 

$

476

 

$

24

 

11

%

$

57

 

14

%

$

6

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL Policyholder Account Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

7,350

 

$

7,957

 

$

8,593

 

$

8,803

 

$

9,009

 

$

7,570

 

$

8,803

 

$

1,659

 

23

%

$

1,233

 

16

%

$

206

 

2

%

Premiums and deposits

 

231

 

242

 

248

 

236

 

233

 

459

 

469

 

2

 

1

%

10

 

2

%

(3

)

(1

)%

Investment performance and interest

 

644

 

674

 

244

 

247

 

(413

)

384

 

(166

)

(1,057

)

 

#

(550

)

 

#

(660

)

 

#

Withdrawals and surrenders

 

(268

)

(280

)

(282

)

(277

)

(269

)

(522

)

(546

)

(1

)

 

(24

)

(5

)%

8

 

3

%

Other

 

 

 

 

 

 

66

 

 

 

 

(66

)

 

#

 

 

Total ending balance

 

$

7,957

 

$

8,593

 

$

8,803

 

$

9,009

 

$

8,560

 

$

7,957

 

$

8,560

 

$

603

 

8

%

$

603

 

8

%

$

(449

)

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums by Product

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term and whole life

 

$

14

 

$

14

 

$

14

 

$

13

 

$

15

 

$

28

 

$

28

 

$

1

 

7

%

$

 

 

$

2

 

15

%

Disability insurance

 

42

 

43

 

42

 

41

 

42

 

85

 

83

 

 

 

(2

)

(2

)%

1

 

2

%

Long term care

 

30

 

30

 

31

 

29

 

30

 

59

 

59

 

 

 

 

 

1

 

3

%

Auto and Home

 

160

 

164

 

168

 

167

 

171

 

316

 

338

 

11

 

7

%

22

 

7

%

4

 

2

%

Intercompany premiums

 

8

 

6

 

7

 

7

 

6

 

13

 

13

 

(2

)

(25

)%

 

 

(1

)

(14

)%

Total premiums by product

 

$

254

 

$

257

 

$

262

 

$

257

 

$

264

 

$

501

 

$

521

 

$

10

 

4

%

$

20

 

4

%

$

7

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto and Home Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy count (thousands)

 

570

 

581

 

594

 

608

 

623

 

570

 

623

 

53

 

9

%

53

 

9

%

15

 

2

%

Loss ratio

 

79.6

%

80.4

%

81.8

%

81.3

%

80.3

%

79.6

%

80.8

%

0.7

%

 

 

1.2

%

 

 

(1.0

)%

 

 

Expense ratio

 

15.2

%

15.0

%

17.5

%

14.7

%

15.1

%

15.0

%

14.9

%

(0.1

)%

 

 

(0.1

)%

 

 

0.4

%

 

 

Combined ratio

 

94.8

%

95.4

%

99.3

%

96.0

%

95.4

%

94.6

%

95.7

%

0.6

%

 

 

1.1

%

 

 

(0.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DAC Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life and Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,920

 

$

1,858

 

$

1,853

 

$

1,852

 

$

1,828

 

$

1,946

 

$

1,852

 

$

(92

)

(5

)%

$

(94

)

(5

)%

$

(24

)

(1

)%

Capitalization

 

30

 

32

 

33

 

27

 

31

 

59

 

58

 

1

 

3

%

(1

)

(2

)%

4

 

15

%

Amortization per income statement

 

(38

)

17

 

(39

)

(39

)

(33

)

(86

)

(72

)

5

 

13

%

14

 

16

%

6

 

15

%

Other

 

(54

)

(54

)

5

 

(12

)

(28

)

(61

)

(40

)

26

 

48

%

21

 

34

%

(16

)

 

#

Total ending balance

 

$

1,858

 

$

1,853

 

$

1,852

 

$

1,828

 

$

1,798

 

$

1,858

 

$

1,798

 

$

(60

)

(3

)% 

$

(60

)

(3

)% 

$

(30

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life insurance in force

 

$

192,186

 

$

192,558

 

$

192,871

 

$

192,477

 

$

192,192

 

$

192,186

 

$

192,192

 

$

6

 

 

$

6

 

 

$

(285

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Amount at Risk

 

$

54,336

 

$

53,346

 

$

52,575

 

$

51,502

 

$

50,952

 

$

54,336

 

$

50,952

 

$

(3,384

)

(6

)%

$

(3,384

)

(6

)%

$

(550

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Policyholder Reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL

 

$

6,911

 

$

7,552

 

$

7,776

 

$

7,991

 

$

7,560

 

$

6,911

 

$

7,560

 

$

649

 

9

%

$

649

 

9

%

$

(431

)

(5

)%

Term and whole life

 

234

 

238

 

236

 

230

 

230

 

234

 

230

 

(4

)

(2

)%

(4

)

(2

)%

 

 

Disability insurance

 

472

 

476

 

480

 

486

 

489

 

472

 

489

 

17

 

4

%

17

 

4

%

3

 

1

%

Long term care and other

 

2,374

 

2,401

 

2,424

 

2,443

 

2,464

 

2,374

 

2,464

 

90

 

4

%

90

 

4

%

21

 

1

%

Auto and Home loss and LAE reserves

 

304

 

306

 

313

 

314

 

318

 

304

 

318

 

14

 

5

%

14

 

5

%

4

 

1

%

Total net policyholder reserves

 

$

10,295

 

$

10,973

 

$

11,229

 

$

11,464

 

$

11,061

 

$

10,295

 

$

11,061

 

$

766

 

7

%

$

766

 

7

%

$

(403

)

(4

)%

 


(1) Includes lump sum deposits.

 

#  Variance of 100% or greater.

 

28


 


 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Second Quarter 2010

 

 

Corporate & Other Segment

 

29



 

Ameriprise Financial, Inc.

Corporate & Other Segment

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

(14

)

(12

)

(11

)

79

 

143

 

(34

)

222

 

157

 

 

#

256

 

 

#

64

 

81

%

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

1

 

6

 

44

 

78

 

48

 

40

 

126

 

47

 

 

#

86

 

 

#

(30

)

(38

)%

Total revenues

 

(13

)

(6

)

33

 

157

 

191

 

6

 

348

 

204

 

 

#

342

 

 

#

34

 

22

%

Banking and deposit interest expense

 

(1

)

3

 

3

 

 

3

 

1

 

3

 

4

 

 

#

2

 

 

#

3

 

 

Total net revenues

 

(12

)

(9

)

30

 

157

 

188

 

5

 

345

 

200

 

 

#

340

 

 

#

31

 

20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

1

 

 

1

 

 

 

2

 

 

(1

)

 

#

(2

)

 

#

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

28

 

45

 

28

 

64

 

74

 

54

 

138

 

46

 

 

#

84

 

 

#

10

 

16

%

General and administrative expense

 

33

 

41

 

44

 

40

 

57

 

61

 

97

 

24

 

73

%

36

 

59

%

17

 

43

%

Total expenses

 

62

 

86

 

73

 

104

 

131

 

117

 

235

 

69

 

 

#

118

 

 

#

27

 

26

%

Pretax segment income (loss)

 

(74

)

(95

)

(43

)

53

 

57

 

(112

)

110

 

131

 

 

#

222

 

 

#

4

 

8

%

Pretax income (loss) attributable to noncontrolling interests

 

(8

)

 

37

 

82

 

139

 

(22

)

221

 

147

 

 

#

243

 

 

#

57

 

70

%

Pretax segment income (loss) attributable to Ameriprise Financial

 

$

(66

)

$

(95

)

$

(80

)

$

(29

)

$

(82

)

$

(90

)

$

(111

)

$

(16

)

(24

)%

$

(21

)

(23

)%

$

(53

)

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

 

$

1

 

$

 

$

96

 

$

197

 

$

 

$

293

 

$

197

 

 

$

293

 

 

$

101

 

 

#

Realized gains (losses)

 

7

 

2

 

(9

)

(13

)

(40

)

7

 

(53

)

(47

)

 

#

(60

)

 

#

(27

)

 

#

Affordable housing

 

(7

)

(7

)

(5

)

(3

)

(5

)

(13

)

(8

)

2

 

29

%

5

 

38

%

(2

)

(67

)%

Other

 

(14

)

(8

)

3

 

(1

)

(9

)

(28

)

(10

)

5

 

36

%

18

 

64

%

(8

)

 

#

Total net investment income

 

$

(14

)

$

(12

)

$

(11

)

$

79

 

$

143

 

$

(34

)

$

222

 

$

157

 

 

#

$

256

 

 

#

$

64

 

81

%

 


# Variance of 100% or greater.

 

30



 

Ameriprise Financial, Inc.

Corporate & Other Segment - Consolidated Investment Entities

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

1

 

(1

)

1

 

79

 

155

 

2

 

234

 

154

 

 

#

232

 

 

#

76

 

96

%

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

(7

)

4

 

43

 

57

 

46

 

(19

)

103

 

53

 

 

#

122

 

 

#

(11

)

(19

)%

Total revenues

 

(6

)

3

 

44

 

136

 

201

 

(17

)

337

 

207

 

 

#

354

 

 

#

65

 

48

%

Banking and deposit interest expense

 

1

 

1

 

3

 

 

 

2

 

 

(1

)

 

#

(2

)

 

#

 

 

Total net revenues

 

(7

)

2

 

41

 

136

 

201

 

(19

)

337

 

208

 

 

#

356

 

 

#

65

 

48

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

40

 

45

 

 

85

 

45

 

 

85

 

 

5

 

13

%

General and administrative expense

 

1

 

2

 

4

 

14

 

17

 

3

 

31

 

16

 

 

#

28

 

 

#

3

 

21

%

Total expenses

 

1

 

2

 

4

 

54

 

62

 

3

 

116

 

61

 

 

#

113

 

 

#

8

 

15

%

Pretax segment income (loss)

 

(8

)

 

37

 

82

 

139

 

(22

)

221

 

147

 

 

#

243

 

 

#

57

 

70

%

Pretax income (loss) attributable to noncontrolling interests

 

(8

)

 

37

 

82

 

139

 

(22

)

221

 

147

 

 

#

243

 

 

#

57

 

70

%

Pretax segment income (loss) attributable to CIEs

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

 

$

 

$

 

$

93

 

$

197

 

$

 

$

290

 

$

197

 

 

$

290

 

 

$

104

 

 

#

Realized gains (losses)

 

 

 

 

(14

)

(41

)

 

(55

)

(41

)

 

(55

)

 

(27

)

 

#

Affordable housing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

1

 

(1

)

1

 

 

(1

)

2

 

(1

)

(2

)

 

#

(3

)

 

#

(1

)

 

Total net investment income

 

$

1

 

$

(1

)

$

1

 

$

79

 

$

155

 

$

2

 

$

234

 

$

154

 

 

#

$

232

 

 

#

$

76

 

96

%

 


#  Variance of 100% or greater.

 

31



 

Ameriprise Financial, Inc.

Corporate & Other Segment  Excluding Consolidated Investment Entities

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

(15

)

(11

)

(12

)

 

(12

)

(36

)

(12

)

3

 

20

%

24

 

67

%

(12

)

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

8

 

2

 

1

 

21

 

2

 

59

 

23

 

(6

)

(75

)%

(36

)

(61

)%

(19

)

(90

)%

Total revenues

 

(7

)

(9

)

(11

)

21

 

(10

)

23

 

11

 

(3

)

(43

)%

(12

)

(52

)%

(31

)

 

#

Banking and deposit interest expense

 

(2

)

2

 

 

 

3

 

(1

)

3

 

5

 

 

#

4

 

 

#

3

 

 

Total net revenues

 

(5

)

(11

)

(11

)

21

 

(13

)

24

 

8

 

(8

)

 

#

(16

)

(67

)%

(34

)

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

1

 

 

1

 

 

 

2

 

 

(1

)

 

#

(2

)

 

#

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

28

 

45

 

28

 

24

 

29

 

54

 

53

 

1

 

4

%

(1

)

(2

)%

5

 

21

%

General and administrative expense

 

32

 

39

 

40

 

26

 

40

 

58

 

66

 

8

 

25

%

8

 

14

%

14

 

54

%

Total expenses

 

61

 

84

 

69

 

50

 

69

 

114

 

119

 

8

 

13

%

5

 

4

%

19

 

38

%

Pretax segment (loss)

 

(66

)

(95

)

(80

)

(29

)

(82

)

(90

)

(111

)

(16

)

(24

)%

(21

)

(23

)%

(53

)

 

#

Integration charges included in general and administrative expense (1)

 

 

4

 

 

 

5

 

 

5

 

5

 

 

5

 

 

5

 

 

Realized (gains) losses included in net investment income

 

(7

)

(2

)

9

 

(1

)

(1

)

(7

)

(2

)

6

 

86

%

5

 

71

%

 

 

Pretax operating (loss) (2)

 

$

(73

)

$

(93

)

$

(71

)

$

(30

)

$

(78

)

$

(97

)

$

(108

)

$

(5

)

(7

)%

$

(11

)

(11

)%

$

(48

)

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

 

$

1

 

$

 

$

3

 

$

 

$

 

$

3

 

$

 

 

$

3

 

 

$

(3

)

 

#

Realized gains (losses)

 

7

 

2

 

(9

)

1

 

1

 

7

 

2

 

(6

)

(86

)%

(5

)

(71

)%

 

 

Affordable housing

 

(7

)

(7

)

(5

)

(3

)

(5

)

(13

)

(8

)

2

 

29

%

5

 

38

%

(2

)

(67

)%

Other

 

(15

)

(7

)

2

 

(1

)

(8

)

(30

)

(9

)

7

 

47

%

21

 

70

%

(7

)

 

#

Total net investment income

 

$

(15

)

$

(11

)

$

(12

)

$

 

$

(12

)

$

(36

)

$

(12

)

$

3

 

20

%

$

24

 

67

%

$

(12

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

2,081

 

$

2,138

 

$

2,204

 

$

2,549

 

$

1,523

 

$

2,081

 

$

1,523

 

(558

)

(27

)%

$

(558

)

(27

)%

$

(1,026

)

(40

)%

 


(1)  Integration charges incurred for acquisition of Columbia

(2)  See non-GAAP financial information on page 38.

 

#  Variance of 100% or greater.

 

32



 

Ameriprise Financial, Inc.

Eliminations (1)

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

(35

)

$

(31

)

$

(32

)

$

(41

)

$

(41

)

$

(58

)

$

(82

)

$

(6

)

(17

)%

$

(24

)

(41

)%

$

 

 

Distribution fees

 

(208

)

(208

)

(209

)

(197

)

(246

)

(456

)

(443

)

(38

)

(18

)%

13

 

3

%

(49

)

(25

)%

Net investment income

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

Premiums

 

(8

)

(6

)

(7

)

(6

)

(7

)

(13

)

(13

)

1

 

13

%

 

 

(1

)

(17

)%

Other revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

(251

)

(246

)

(248

)

(244

)

(294

)

(527

)

(538

)

(43

)

(17

)%

(11

)

(2

)%

(50

)

(20

)%

Banking and deposit interest expense

 

 

 

(1

)

 

(1

)

(1

)

(1

)

(1

)

 

 

 

(1

)

 

Total net revenues

 

(251

)

(246

)

(247

)

(244

)

(293

)

(526

)

(537

)

(42

)

(17

)%

(11

)

(2

)%

(49

)

(20

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

(187

)

(192

)

(192

)

(186

)

(232

)

(409

)

(418

)

(45

)

(24

)%

(9

)

(2

)%

(46

)

(25

)%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

(64

)

(54

)

(55

)

(58

)

(61

)

(117

)

(119

)

3

 

5

%

(2

)

(2

)%

(3

)

(5

)%

Total expenses

 

(251

)

(246

)

(247

)

(244

)

(293

)

(526

)

(537

)

(42

)

(17

)%

(11

)

(2

)%

(49

)

(20

)%

Pretax segment income (loss)

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of revenue and expense lines impacted by CIEs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

(35

)

$

(31

)

$

(32

)

$

(41

)

$

(41

)

$

(58

)

$

(82

)

$

(6

)

(17

)%

$

(24

)

(41

)%

$

 

 

CIEs

 

(1

)

 

(1

)

(9

)

(10

)

(1

)

(19

)

(9

)

 

#

(18

)

 

#

(1

)

(11

)%

Management and financial advice fees excluding CIEs

 

$

(34

)

$

(31

)

$

(31

)

$

(32

)

$

(31

)

$

(57

)

$

(63

)

$

3

 

9

%

$

(6

)

(11

)%

$

1

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

$

(64

)

$

(54

)

$

(55

)

$

(58

)

$

(61

)

$

(117

)

$

(119

)

$

3

 

5

%

$

(2

)

(2

)%

$

(3

)

(5

)%

CIEs

 

(1

)

 

(1

)

(9

)

(10

)

(1

)

(19

)

(9

)

 

#

(18

)

 

#

(1

)

(11

)%

General and administrative expense excluding CIEs

 

$

(63

)

$

(54

)

$

(54

)

$

(49

)

$

(51

)

$

(116

)

$

(100

)

$

12

 

19

%

$

16

 

14

%

$

(2

)

(4

)%

 


(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)

 

Second Quarter 2010

 

 

Balance Sheet and Ratings Information

 

34



 

Ameriprise Financial, Inc.

Consolidated Balance Sheets

Second Quarter 2010

 

(in millions, unaudited)

 

June 30, 2009

 

September 30, 2009

 

December 31, 2009

 

March 31, 2010

 

June 30, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

4,469

 

$

3,580

 

$

3,097

 

$

4,816

 

$

3,827

 

Investments

 

34,763

 

36,810

 

36,938

 

35,765

 

36,526

 

Separate account assets

 

48,661

 

55,576

 

58,129

 

60,326

 

58,029

 

Receivables

 

4,067

 

4,247

 

4,435

 

4,768

 

4,906

 

Deferred acquisition costs

 

4,361

 

4,323

 

4,334

 

4,243

 

4,123

 

Restricted and segregated cash

 

1,655

 

1,718

 

1,452

 

1,532

 

1,272

 

Other assets

 

4,775

 

4,295

 

4,286

 

4,007

 

5,643

 

Total Ameriprise Financial assets

 

102,751

 

110,549

 

112,671

 

115,457

 

114,326

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Investment Entities

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

75

 

104

 

181

 

613

 

570

 

Investments

 

30

 

37

 

36

 

5,349

 

5,437

 

Receivables

 

10

 

22

 

49

 

80

 

92

 

Other assets

 

344

 

485

 

833

 

874

 

685

 

Total Consolidated Investment Entities assets

 

459

 

648

 

1,099

 

6,916

 

6,784

 

Total Assets

 

$

103,210

 

$

111,197

 

$

113,770

 

$

122,373

 

$

121,110

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial

 

 

 

 

 

 

 

 

 

 

 

Future policy benefits and claims

 

$

30,916

 

$

31,042

 

$

30,886

 

$

30,866

 

$

30,677

 

Separate account liabilities

 

48,661

 

55,576

 

58,129

 

60,326

 

58,029

 

Customer deposits

 

9,216

 

9,028

 

8,554

 

8,632

 

8,421

 

Short-term borrowings

 

 

 

 

 

484

 

Long-term debt

 

2,318

 

1,868

 

1,868

 

2,612

 

2,684

 

Accounts payable and accrued expenses

 

825

 

765

 

918

 

748

 

1,050

 

Other liabilities

 

2,743

 

3,266

 

3,093

 

2,743

 

3,166

 

Total Ameriprise Financial liabilities

 

94,679

 

101,545

 

103,448

 

105,927

 

104,511

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Investment Entities

 

 

 

 

 

 

 

 

 

 

 

Debt

 

117

 

208

 

381

 

5,502

 

5,296

 

Accounts payable and accrued expenses

 

8

 

13

 

28

 

17

 

21

 

Other liabilities

 

36

 

41

 

41

 

231

 

163

 

Total Consolidated Investment Entities liabilities

 

161

 

262

 

450

 

5,750

 

5,480

 

Total Liabilities

 

 

94,840

 

 

101,807

 

 

103,898

 

 

111,677

 

 

109,991

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial

 

 

 

 

 

 

 

 

 

 

 

Common shares ($.01 par)

 

3

 

3

 

3

 

3

 

3

 

Additional paid-in capital

 

5,641

 

5,699

 

5,748

 

5,819

 

5,869

 

Retained earnings

 

4,869

 

5,085

 

5,276

 

5,445

 

5,658

 

Appropriated retained earnings of consolidated investment entities

 

 

 

 

508

 

620

 

Treasury stock

 

(2,021

)

(2,021

)

(2,023

)

(2,038

)

(2,259

)

Accumulated other comprehensive income (loss), net of tax

 

(386

)

279

 

265

 

367

 

607

 

Total Ameriprise Financial shareholders’ equity

 

8,106

 

9,045

 

9,269

 

10,104

 

10,498

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests

 

264

 

345

 

603

 

592

 

621

 

Total Equity

 

8,370

 

9,390

 

9,872

 

10,696

 

11,119

 

Total Liabilities and Shareholders’ Equity

 

$

103,210

 

$

111,197

 

$

113,770

 

$

122,373

 

$

121,110

 

 

35



 

Ameriprise Financial, Inc.

Capital and Ratings Information

Second Quarter 2010

 

(in millions unless otherwise noted, unaudited)

 

June 30, 2009

 

September 30, 2009

 

December 31, 2009

 

March 31, 2010

 

June 30, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term Debt Summary

 

 

 

 

 

 

 

 

 

 

 

Senior notes

 

$

1,990

 

$

1,540

 

$

1,540

 

$

2,284

 

$

2,356

 

Junior subordinated notes

 

322

 

322

 

322

 

322

 

322

 

Non-recourse debt for inverse floaters

 

6

 

6

 

6

 

6

 

6

 

Total Ameriprise Financial long-term debt

 

2,318

 

1,868

 

1,868

 

2,612

 

2,684

 

Non-recourse debt of consolidated investment entities

 

117

 

208

 

381

 

5,502

 

5,296

 

Total long-term debt

 

$

2,435

 

$

2,076

 

$

2,249

 

$

8,114

 

$

7,980

 

 

 

 

 

 

 

 

 

 

 

 

 

Total long-term debt

 

$

2,435

 

$

2,076

 

$

2,249

 

$

8,114

 

$

7,980

 

Total non-recourse debt

 

(123

)

(214

)

(387

)

(5,508

)

(5,302

)

Total long-term debt excluding non-recourse debt (1)

 

2,312

 

1,862

 

1,862

 

2,606

 

2,678

 

Junior subordinated notes 75% equity credit (2)

 

(242

)

(242

)

(242

)

(242

)

(242

)

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

 

$

2,070

 

$

1,620

 

$

1,620

 

$

2,364

 

$

2,436

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Equity

 

$

8,370

 

$

9,390

 

$

9,872

 

$

10,696

 

$

11,119

 

Noncontrolling interests

 

(264

)

(345

)

(603

)

(592

)

(621

)

Total Ameriprise Financial shareholders’ equity

 

8,106

 

9,045

 

9,269

 

10,104

 

10,498

 

Equity of consolidated investment entities

 

 

 

 

(482

)

(596

)

Total equity excluding CIEs (1)

 

$

8,106

 

$

9,045

 

$

9,269

 

$

9,622

 

$

9,902

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial capital

 

10,424

 

10,913

 

11,137

 

12,716

 

13,182

 

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

 

10,418

 

10,907

 

11,131

 

12,228

 

12,580

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to capital

 

 

 

 

 

 

 

 

 

 

 

Debt to total capital of Ameriprise Financial

 

22.2

%

17.1

%

16.8

%

20.5

%

20.4

%

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

 

22.2

%

17.1

%

16.7

%

21.3

%

21.3

%

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

 

19.9

%

14.9

%

14.6

%

19.3

%

19.4

%

 

Ratings (as of June 30, 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 page 38.

(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)

Second Quarter 2010

 

(in millions unless otherwise noted, unaudited)

 

June 30, 2009

 

September 30, 2009

 

December 31, 2009

 

March 31, 2010

 

June 30, 2010

 

Cash and cash equivalents

 

$

4,469

 

$

3,580

 

$

3,097

 

$

4,816

 

$

3,827

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments - Ending Balances

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale Securities

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

15,016

 

16,487

 

16,123

 

15,629

 

16,078

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage backed securities

 

7,434

 

8,049

 

7,770

 

7,317

 

7,473

 

Commercial mortgage backed securities

 

4,056

 

4,373

 

4,613

 

4,467

 

4,681

 

Asset backed securities

 

1,909

 

1,846

 

1,994

 

1,968

 

1,966

 

Total mortgage and other asset backed securities

 

13,399

 

14,268

 

14,377

 

13,752

 

14,120

 

 

 

 

 

 

 

 

 

 

 

 

 

Other structured investments

 

49

 

55

 

58

 

 

 

State and municipal obligations

 

1,089

 

1,322

 

1,417

 

1,569

 

1,608

 

US government and agencies obligations

 

185

 

312

 

387

 

229

 

178

 

Foreign government bonds and obligations

 

106

 

109

 

108

 

108

 

110

 

Common and preferred stocks

 

39

 

48

 

43

 

50

 

48

 

Other AFS

 

28

 

24

 

33

 

77

 

74

 

Total other

 

1,496

 

1,870

 

2,046

 

2,033

 

2,018

 

Total available-for-sale securities

 

29,911

 

32,625

 

32,546

 

31,414

 

32,216

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage loans

 

2,786

 

2,735

 

2,695

 

2,682

 

2,670

 

Allowance for loan losses

 

(28

)

(29

)

(32

)

(39

)

(39

)

Commercial mortgage loans, net

 

2,758

 

2,706

 

2,663

 

2,643

 

2,631

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy loans

 

715

 

719

 

720

 

720

 

725

 

Trading securities

 

874

 

276

 

556

 

544

 

547

 

Other investments

 

505

 

484

 

453

 

444

 

407

 

Total investments

 

34,763

 

36,810

 

36,938

 

35,765

 

36,526

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash, cash equivalents and investments

 

$

39,232

 

$

40,390

 

$

40,035

 

$

40,581

 

$

40,353

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

(577

)

$

799

 

$

686

 

$

1,031

 

$

1,581

 

 

 

 

 

 

 

 

 

 

 

 

 

AFS Fixed Maturity Asset Quality - %

 

 

 

 

 

 

 

 

 

 

 

AAA

 

42

%

41

%

41

%

41

%

41

%

AA

 

4

%

4

%

5

%

5

%

6

%

AFS securities AA and above

 

46

%

45

%

46

%

46

%

47

%

A

 

13

%

16

%

15

%

15

%

14

%

BBB

 

34

%

33

%

33

%

34

%

34

%

Below investment grade

 

7

%

6

%

6

%

5

%

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

 

7

%

6

%

5

%

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:

 

· Ameriprise Financial's shareholders' equity excluding AOCI;

· Ameriprise Financial's shareholders' equity excluding CIEs;

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

· Basic operating earnings per share;

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

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

· Operating earnings per diluted share;

· Operating earnings;

· Operating margin;

· Operating return on allocated equity;

· Operating return on equity excluding AOCI;

· Operating total net revenues;

· Pretax income (loss) excluding CIEs;

· Pretax operating earnings (loss);

· Pretax operating margin;

· Return on allocated equity;

· Return on equity excluding AOCI;

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

· Total equity excluding CIEs;

· Total long-term debt excluding non-recourse debt;

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

 

Management believes that the presentation of these non-GAAP financial measures better reflects the underlying performance of our 2010 and 2009 core operations and facilitates a more meaningful trend analysis.  Management uses certain of these non-GAAP measures to evaluate our financial performance on a basis comparable to that used by some securities analysts and investors.  Also, certain of these non-GAAP measures are taken into consideration, to varying degrees, for purposes of business planning and analysis and certain compensation-related matters.  See the reconciliations on pages 48 - 52.

 

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. Columbia Management Investment Advisors, formerly known as 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 and Columbia 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.

 

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”.

 

Consolidated Investment Entities (“CIEs”) - CIEs include certain property and hedge funds as well as the variable interest entities required to be consolidated under current accounting standards.

 

DAC Rollforward Other - 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.

 

Debt to Total Capital Ratio - A ratio comprised of total long-term debt divided by Ameriprise Financial capital. We also present debt to capital ratios excluding non-recourse debt and equity of consolidated investment entities 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.

 

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, Seligman and Columbia 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.

 

Operating Earnings - Net income attributable to Ameriprise Financial less integration charges, net of tax, and realized gains, net of tax, plus realized losses, net of tax.

 

Operating Return on Allocated Equity - Calculated using operating earnings for the last twelve months and the average allocated equity as of the last day of the trailing four quarters and current quarter end.

 

Operating Revenues - Total net revenues less realized gains plus realized losses.

 

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 operating 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 and Columbia 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 long-term debt. Total capital is also presented excluding non-recourse debt and CIEs.

 

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, Columbia Management Investment Advisors, 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)

 

Second Quarter 2010

 

 

Disclosed Items

 

41



 

Ameriprise Financial, Inc.

Disclosed Items

2 Qtr 2010

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth Management

 

Asset Management

 

Annuities

 

Protection

 

Corporate

 

 

 

Securities

 

Integration

 

Integration

 

Securities

 

Securities

 

Securities

 

Integration

 

 

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Charges (2)

 

Charges (2)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Charges (2)

 

CIEs (3)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

 

 

Net investment income

 

1

 

 

 

4

 

1

 

1

 

 

155

 

Premiums

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

46

 

Total revenues

 

1

 

 

 

4

 

1

 

1

 

 

201

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

Total net revenues

 

1

 

 

 

4

 

1

 

1

 

 

201

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

45

 

General and administrative expense

 

 

4

 

48

 

 

 

 

5

 

17

 

Total expenses

 

 

4

 

48

 

 

 

 

5

 

62

 

Pretax segment income (loss)

 

1

 

(4

)

(48

)

4

 

1

 

1

 

(5

)

139

 

Less: Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

 

139

 

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

 

$

1

 

$

(4

)

$

(48

)

$

4

 

$

1

 

$

1

 

$

(5

)

$

 

 

Included in Operating Earnings

 

 

 

Annuities

 

Protection

 

Corporate

 

 

 

VA

 

Market

 

 

 

 

 

Market

 

 

 

 

 

 

 

 

 

Guarantee

 

Impacts

 

Implementation

 

DAC/DSIC Model

 

Impacts

 

Implementation

 

DAC/DSIC Model

 

RiverSource

 

(in millions, unaudited)

 

Impacts (4)

 

to DAC/DSIC (5)

 

of EPN (6)

 

Updates (7)

 

to DAC/DSIC (5)

 

of EPN (6)

 

Updates (7)

 

2a-7 Fund (8)

 

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

 

(64

)

6

 

17

 

(5

)

 

 

 

 

Amortization of deferred acquisition costs

 

39

 

29

 

(11

)

(21

)

4

 

(6

)

(7

)

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

General and administrative expense

 

 

 

 

 

 

 

 

8

 

Total expenses

 

(25

)

35

 

6

 

(26

)

4

 

(6

)

(7

)

8

 

Pretax segment income (loss)

 

25

 

(35

)

(6

)

26

 

(4

)

6

 

7

 

(8

)

Less: Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

 

 

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

 

$

25

 

$

(35

)

$

(6

)

$

26

 

$

(4

)

$

6

 

$

7

 

$

(8

)

 


(1)

Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities

(2)

Non-recurring integration charges related to H&R Block Financial Advisors and Columbia Management acquisitions

(3)

Reflects revenues and expenses of Consolidated Investment Entities

(4)

Variable annuity guarantee impacts include:

 

$ 74 million net benefit related to hedged variable annuity living benefits

 

$ 49 million increase in DAC and DSIC amortization resulting from hedged living benefits offset

(5)

Increase in DAC and DSIC amortization from lower period ending account values

(6)

Increase / (decrease) in expense related to the implementation of Enhanced Portfolio Navigator (EPN)

(7)

Revisions to certain calculations in the valuation of DAC and DSIC

(8)

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

 

42



 

Ameriprise Financial, Inc.

Disclosed Items

1 Qtr 2010

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth Management

 

Asset Management

 

Annuities

 

Protection

 

Corporate

 

 

 

Securities

 

Integration

 

Securities

 

Integration

 

Securities

 

Securities

 

Securities

 

 

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Charges (2)

 

Gains/(Losses) (1)

 

Charges (2)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

CIEs (3)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

 

 

Net investment income

 

(1

)

 

1

 

 

3

 

1

 

1

 

79

 

Premiums

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

57

 

Total revenues

 

(1

)

 

1

 

 

3

 

1

 

1

 

136

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

Total net revenues

 

(1

)

 

1

 

 

3

 

1

 

1

 

136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

40

 

General and administrative expense

 

 

2

 

 

5

 

 

 

 

14

 

Total expenses

 

 

2

 

 

5

 

 

 

 

54

 

Pretax segment income (loss)

 

(1

)

(2

)

1

 

(5

)

3

 

1

 

1

 

82

 

Less: Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

 

82

 

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

 

$

(1

)

$

(2

)

$

1

 

$

(5

)

$

3

 

$

1

 

$

1

 

$

 

 

Included in Operating Earnings

 

 

 

Advice & Wealth
Management

 

Asset Management

 

Annuities

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

Reserve

 

Threadneedle

 

VA Cash

 

Reserve

 

 

 

 

 

 

 

 

 

(in millions, unaudited)

 

Fund (4)

 

Valuation (5)

 

Impact (6)

 

Fund (4)

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

2

 

 

(5

)

 

 

 

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

20

 

 

 

 

 

 

 

 

 

Total revenues

 

2

 

 

(5

)

20

 

 

 

 

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

2

 

 

(5

)

20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

 

27

 

 

 

 

 

 

 

 

 

 

 

Total expenses

 

 

27

 

 

 

 

 

 

 

 

 

 

 

Pretax segment income (loss)

 

2

 

(27

)

(5

)

20

 

 

 

 

 

 

 

 

 

Less: Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

2

 

$

(27

)

$

(5

)

$

20

 

 

 

 

 

 

 

 

 

 


(1)

Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities

(2)

Non-recurring integration charges related to H&R Block Financial Advisors and Columbia Management acquisitions

(3)

Reflects revenues and expenses of Consolidated Investment Entities

(4)

Benefit from payments by the Reserve Fund

(5)

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

(6)

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

 

43



 

Ameriprise Financial, Inc.

Disclosed Items

4 Qtr 2009

 

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth Management

 

Asset Management

 

Annuities

 

Protection

 

Corporate

 

 

 

Securities

 

Integration

 

Integration

 

Securities

 

Securities

 

Securities

 

 

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Charges (2)

 

Charges (2)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

CIEs (3)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

 

Net investment income

 

(2

)

 

 

16

 

13

 

(9

)

1

 

Premiums

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

43

 

Total revenues

 

(2

)

 

 

16

 

13

 

(9

)

44

 

Banking and deposit interest expense

 

 

 

 

 

 

 

3

 

Total net revenues

 

(2

)

 

 

16

 

13

 

(9

)

41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

General and administrative expense

 

 

15

 

7

 

 

 

 

4

 

Total expenses

 

 

15

 

7

 

 

 

 

4

 

Pretax segment income (loss)

 

(2

)

(15

)

(7

)

16

 

13

 

(9

)

37

 

Less: Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

37

 

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

 

$

(2

)

$

(15

)

$

(7

)

$

16

 

$

13

 

$

(9

)

$

 

 

Included in Operating Earnings

 

 

 

Asset Management

 

Annuities

 

Protection

 

Corporate

 

 

 

 

 

Hedge Fund

 

VA

 

Market

 

Market

 

 

 

 

 

 

 

 

 

Performance

 

Guarantee

 

Impacts

 

Impacts

 

Reserve

 

Legal

 

 

 

(in millions, unaudited)

 

Fees (4)

 

Impacts (5)

 

to DAC/DSIC (6)

 

to DAC/DSIC (6)

 

Increase (7)

 

Expenses (8)

 

 

 

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

 

 

5

 

 

 

14

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

(3

)

(1

)

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

General and administrative expense

 

*

 

 

 

 

 

19

 

 

 

Total expenses

 

 

5

 

(3

)

(1

)

14

 

19

 

 

 

Pretax segment income (loss)

 

 

(5

)

3

 

1

 

(14

)

(19

)

 

 

Less: Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

 

 

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

 

$

30

 

$

(5

)

$

3

 

$

1

 

$

(14

)

$

(19

)

 

 

 


(1)

Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities

(2)

Non-recurring integration charges related to J. & W. Seligman & Co., H&R Block Financial Advisors and Columbia Management acquisitions

(3)

Reflects revenues and expenses of Consolidated Investment Entities

(4)

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

(5)

Variable annuity guarantee impacts include:

 

$ 3 million net expense related to hedged variable annuity living benefits

 

$ 2 million increase in death and income benefit expenses due to higher equity market valuations

(6)

Decrease in DAC and DSIC amortization from higher period ending account values

(7)

Increase in VUL/UL reserves related to modeling assumptions

(8)

Increase in legal expenses related to a previously disclosed client mediation

 

44



 

Ameriprise Financial, Inc.

Disclosed Items

3 Qtr 2009

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth Management

 

Asset Management

 

Protection

 

Corporate

 

 

 

Securities

 

Integration

 

Integration

 

Securities

 

Securities

 

Integration

 

 

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Charges (2)

 

Charges (2)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Charges (2)

 

CIEs (3)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

 

Net investment income

 

5

 

 

 

7

 

2

 

 

(1

)

Premiums

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

4

 

Total revenues

 

5

 

 

 

7

 

2

 

 

3

 

Banking and deposit interest expense

 

 

 

 

 

 

 

1

 

Total net revenues

 

5

 

 

 

7

 

2

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

General and administrative expense

 

 

21

 

7

 

 

 

4

 

2

 

Total expenses

 

 

21

 

7

 

 

 

4

 

2

 

Pretax segment income (loss)

 

5

 

(21

)

(7

)

7

 

2

 

(4

)

 

Less: Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

 

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

 

$

5

 

$

(21

)

$

(7

)

$

7

 

$

2

 

$

(4

)

$

 

 

Included in Operating Earnings

 

 

 

Asset Management

 

Annuities

 

Protection

 

Corporate

 

 

 

 

 

VA

 

Market

 

 

 

Market

 

 

 

 

 

 

 

 

 

Legal

 

Guarantee

 

Impacts

 

Valuation

 

Impacts

 

Valuation

 

Debt Retirement

 

RiverSource

 

(in millions, unaudited)

 

Expenses (4)

 

Impacts (5)

 

to DAC/DSIC (6)

 

Assumptions (7)

 

to DAC/DSIC (6)

 

Assumptions (7)

 

Costs (8)

 

2a-7 Fund (9)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

(65

)

 

 

Total revenues

 

 

 

 

 

 

(65

)

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

Total net revenues

 

 

 

 

 

 

(65

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

52

 

(4

)

(47

)

 

(33

)

 

 

Amortization of deferred acquisition costs

 

 

(53

)

(22

)

(64

)

(1

)

(55

)

 

 

Interest and debt expense

 

 

 

 

 

 

 

13

 

 

General and administrative expense

 

10

 

 

 

 

 

 

 

10

 

Total expenses

 

10

 

(1

)

(26

)

(111

)

(1

)

(88

)

13

 

10

 

Pretax segment income (loss)

 

(10

)

1

 

26

 

111

 

1

 

23

 

(13

)

(10

)

Less: Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

 

 

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

 

$

(10

)

$

1

 

$

26

 

$

111

 

$

1

 

$

23

 

$

(13

)

$

(10

)

 


(1)

Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities

(2)

Non-recurring integration charges related to J. & W. Seligman & Co., H&R Block Financial Advisors and Columbia Management acquisitions

(3)

Reflects revenues and expenses of Consolidated Investment Entities

(4)

Increase in legal expenses related to a previously disclosed client mediation

(5)

Variable annuity guarantee impacts include:

 

$ 66 million net expense related to hedged variable annuity living benefits

 

$ 63 million decrease in DAC and DSIC amortization resulting from hedged living benefits offset

 

$ 4 million decrease in death and income benefit expenses due to higher equity market valuations

(6)

Decrease in DAC and DSIC amortization from higher period ending account values and from the impact of variable annuity living benefit costs, net of hedges

(7)

Net impact of annual review/updating of valuation assumptions

(8)

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

(9)

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

 

45



 

Ameriprise Financial, Inc.

Disclosed Items

2 Qtr 2009

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth Management

 

Asset Management

 

Annuities

 

Protection

 

Corporate

 

 

 

Securities

 

Integration

 

Integration

 

Securities

 

Securities

 

Securities

 

 

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Charges (2)

 

Charges (2)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

CIEs (3)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

 

Net investment income

 

(8

)

 

 

8

 

(1

)

7

 

1

 

Premiums

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

(7

)

Total revenues

 

(8

)

 

 

8

 

(1

)

7

 

(6

)

Banking and deposit interest expense

 

 

 

 

 

 

 

1

 

Total net revenues

 

(8

)

 

 

8

 

(1

)

7

 

(7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

General and administrative expense

 

 

16

 

9

 

 

 

 

1

 

Total expenses

 

 

16

 

9

 

 

 

 

1

 

Pretax segment income (loss)

 

(8

)

(16

)

(9

)

8

 

(1

)

7

 

(8

)

Less: Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

(8

)

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

 

$

(8

)

$

(16

)

$

(9

)

$

8

 

$

(1

)

$

7

 

$

 

 

Included in Operating Earnings

 

 

 

Asset Management

 

Annuities

 

Protection

 

Corporate

 

 

 

 

 

VA

 

Market

 

Market

 

 

 

Junior

 

 

 

Legal

 

Guarantee

 

Impacts

 

Impacts

 

Legal

 

Subordinated Notes

 

(in millions, unaudited)

 

Expenses (4)

 

Impacts (5)

 

to DAC/DSIC (6)

 

to DAC/DSIC (6)

 

Expenses (4)

 

Repurchase (7)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

8

 

Total revenues

 

 

 

 

 

 

8

 

Banking and deposit interest expense

 

 

 

 

 

 

 

Total net revenues

 

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

291

 

(6

)

 

 

 

Amortization of deferred acquisition costs

 

 

(206

)

(33

)

(6

)

 

 

Interest and debt expense

 

 

 

 

 

 

 

General and administrative expense

 

16

 

 

 

 

7

 

 

Total expenses

 

16

 

85

 

(39

)

(6

)

7

 

 

Pretax segment income (loss)

 

(16

)

(85

)

39

 

6

 

(7

)

8

 

Less: Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

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

 

$

(16

)

$

(85

)

$

39

 

$

6

 

$

(7

)

$

8

 

 


(1) 

Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities

(2) 

Non-recurring integration charges related to J. & W. Seligman & Co. and H&R Block Financial Advisors acquisitions

(3) 

Reflects revenues and expenses of Consolidated Investment Entities

(4) 

Increase in legal expenses related to a previously disclosed client mediation

(5) 

Variable annuity guarantee impacts include:

 

$ 360 million net expense related to hedged variable annuity living benefits

 

$ 255 million decrease in DAC and DSIC amortization resulting from hedged living benefits offset

 

$ 20 million decrease in death and income benefit expenses due to higher equity market valuations

(6) 

Decrease in DAC and DSIC amortization from higher period ending account values

(7) 

Gain on the repurchase of certain junior subordinated notes

 

46



 

Exhibit B

 

GRAPHIC

 

 

Statistical Supplement Package

(unaudited)

 

Second Quarter 2010

 

 

GAAP Excluding Consolidated Investment Entities Reconciliation Tables

 

47



 

Ameriprise Financial, Inc.

Reconciliation for Revenues Excluding CIEs

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

606

 

$

689

 

$

855

 

$

774

 

$

955

 

$

1,160

 

$

1,729

 

CIEs

 

(1

)

 

(1

)

(9

)

(10

)

(1

)

(19

)

Management and financial advice fees excluding CIEs

 

$

607

 

$

689

 

$

856

 

$

783

 

$

965

 

$

1,161

 

$

1,748

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution fees

 

$

351

 

$

367

 

$

391

 

$

391

 

$

453

 

$

662

 

$

844

 

CIEs

 

 

 

 

 

 

 

 

Distribution fees excluding CIEs

 

$

351

 

$

367

 

$

391

 

$

391

 

$

453

 

$

662

 

$

844

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

$

511

 

$

538

 

$

535

 

$

590

 

$

654

 

$

929

 

$

1,244

 

CIEs

 

1

 

(1

)

1

 

79

 

155

 

2

 

234

 

Net investment income excluding CIEs

 

$

510

 

$

539

 

$

534

 

$

511

 

$

499

 

$

927

 

$

1,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums

 

$

269

 

$

276

 

$

287

 

$

282

 

$

299

 

$

535

 

$

581

 

CIEs

 

 

 

 

 

 

 

 

Premiums excluding CIEs

 

$

269

 

$

276

 

$

287

 

$

282

 

$

299

 

$

535

 

$

581

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

$

175

 

$

109

 

$

229

 

$

255

 

$

236

 

$

384

 

$

491

 

CIEs

 

(7

)

4

 

43

 

57

 

46

 

(19

)

103

 

Other revenues excluding CIEs

 

$

182

 

$

105

 

$

186

 

$

198

 

$

190

 

$

403

 

$

388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

1,912

 

$

1,979

 

$

2,297

 

$

2,292

 

$

2,597

 

$

3,670

 

$

4,889

 

CIEs

 

(7

)

3

 

43

 

127

 

191

 

(18

)

318

 

Total revenues excluding CIEs

 

$

1,919

 

$

1,976

 

$

2,254

 

$

2,165

 

$

2,406

 

$

3,688

 

$

4,571

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banking and deposit interest expense

 

$

38

 

$

33

 

$

28

 

$

21

 

$

20

 

$

80

 

$

41

 

CIEs

 

1

 

1

 

3

 

 

 

2

 

 

Banking and deposit interest expense excluding CIEs

 

$

37

 

$

32

 

$

25

 

$

21

 

$

20

 

$

78

 

$

41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

$

1,874

 

$

1,946

 

$

2,269

 

$

2,271

 

$

2,577

 

$

3,590

 

$

4,848

 

CIEs

 

(8

)

2

 

40

 

127

 

191

 

(20

)

318

 

Total net revenues excluding CIEs

 

$

1,882

 

$

1,944

 

$

2,229

 

$

2,144

 

$

2,386

 

$

3,610

 

$

4,530

 

 

 

48



 

Ameriprise Financial, Inc.

Reconciliation for Expenses and Net Income Attributable to Ameriprise Financial Excluding CIEs

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

2009

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

$

432

 

$

462

 

$

504

 

$

525

 

$

621

 

$

816

 

$

1,146

 

CIEs

 

 

 

 

 

 

 

 

Distribution expenses excluding CIEs

 

$

432

 

$

462

 

$

504

 

$

525

 

$

621

 

$

816

 

$

1,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

$

237

 

$

232

 

$

229

 

$

228

 

$

231

 

$

442

 

$

459

 

CIEs

 

 

 

 

 

 

 

 

Interest credited to fixed accounts excluding CIEs

 

$

237

 

$

232

 

$

229

 

$

228

 

$

231

 

$

442

 

$

459

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

$

587

 

$

306

 

$

349

 

$

354

 

$

298

 

$

687

 

$

652

 

CIEs

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses excluding CIEs

 

$

587

 

$

306

 

$

349

 

$

354

 

$

298

 

$

687

 

$

652

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

$

(125

)

$

(64

)

$

120

 

$

118

 

$

171

 

$

161

 

$

289

 

CIEs

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs excluding CIEs

 

$

(125

)

$

(64

)

$

120

 

$

118

 

$

171

 

$

161

 

$

289

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

$

28

 

$

45

 

$

28

 

$

64

 

$

74

 

$

54

 

$

138

 

CIEs

 

 

 

 

40

 

45

 

 

85

 

Interest and debt expense excluding CIEs

 

$

28

 

$

45

 

$

28

 

$

24

 

$

29

 

$

54

 

$

53

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

$

600

 

$

625

 

$

708

 

$

621

 

$

716

 

$

1,181

 

$

1,337

 

CIEs

 

 

2

 

3

 

5

 

7

 

2

 

12

 

General and administrative expense excluding CIEs

 

$

600

 

$

623

 

$

705

 

$

616

 

$

709

 

$

1,179

 

$

1,325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses

 

$

1,759

 

$

1,606

 

$

1,938

 

$

1,910

 

$

2,111

 

$

3,341

 

$

4,021

 

CIEs

 

 

2

 

3

 

45

 

52

 

2

 

97

 

Total expenses excluding CIEs

 

$

1,759

 

$

1,604

 

$

1,935

 

$

1,865

 

$

2,059

 

$

3,339

 

$

3,924

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

$

115

 

$

340

 

$

331

 

$

361

 

$

466

 

$

249

 

$

827

 

CIEs

 

(8

)

 

37

 

82

 

139

 

(22

)

221

 

Pretax income excluding CIEs

 

$

123

 

$

340

 

$

294

 

$

279

 

$

327

 

$

271

 

$

606

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

$

28

 

$

80

 

$

57

 

$

65

 

$

68

 

$

46

 

$

133

 

CIEs

 

 

 

 

 

 

 

 

Income tax provision excluding CIEs

 

$

28

 

$

80

 

$

57

 

$

65

 

$

68

 

$

46

 

$

133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

87

 

$

260

 

$

274

 

$

296

 

$

398

 

$

203

 

$

694

 

CIEs

 

(8

)

 

37

 

82

 

139

 

(22

)

221

 

Net income excluding CIEs

 

$

95

 

$

260

 

$

237

 

$

214

 

$

259

 

$

225

 

$

473

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to noncontrolling interests

 

$

(8

)

$

 

$

37

 

$

82

 

$

139

 

$

(22

)

$

221

 

CIEs

 

(8

)

 

37

 

82

 

139

 

(22

)

221

 

Net income (loss) attributable to noncontrolling interests excluding CIEs

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Ameriprise Financial

 

$

95

 

$

260

 

$

237

 

$

214

 

$

259

 

$

225

 

$

473

 

CIEs

 

 

 

 

 

 

 

 

Net income attributable to Ameriprise Financial excluding CIEs

 

$

95

 

$

260

 

$

237

 

$

214

 

$

259

 

$

225

 

$

473

 

 

49



 

Exhibit C

 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Second Quarter 2010

 

 

Reconciliation  of GAAP Metrics to Operating Metrics

 

50



 

Ameriprise Financial, Inc.

Reconciliation of Consolidated GAAP Metrics to Operating Metrics

Second Quarter 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2 Qtr 2009

 

3 Qtr 2009

 

4 Qtr 2009

 

1 Qtr 2010

 

2 Qtr 2010

 

 

 

 

 

Less:

 

 

 

 

 

Less:

 

 

 

 

 

Less:

 

 

 

 

 

Less:

 

 

 

 

 

Less:

 

 

 

(in millions unless otherwise noted, unaudited)

 

GAAP

 

Adjustments (1)

 

Operating

 

GAAP

 

Adjustments (1)

 

Operating

 

GAAP

 

Adjustments (1)

 

Operating

 

GAAP

 

Adjustments (1)

 

Operating

 

GAAP

 

Adjustments (1)

 

Operating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

606

 

$

(1

)

$

607

 

$

689

 

$

 

$

689

 

$

855

 

$

(1

)

$

856

 

$

774

 

$

(9

)

$

783

 

$

955

 

$

(10

)

$

965

 

Distribution fees

 

351

 

 

351

 

367

 

 

367

 

391

 

 

391

 

391

 

 

391

 

453

 

 

453

 

Net investment income

 

511

 

7

 

504

 

538

 

13

 

525

 

535

 

19

 

516

 

590

 

84

 

506

 

654

 

162

 

492

 

Premiums

 

269

 

 

269

 

276

 

 

276

 

287

 

 

287

 

282

 

 

282

 

299

 

 

299

 

Other revenues

 

175

 

(7

)

182

 

109

 

4

 

105

 

229

 

43

 

186

 

255

 

57

 

198

 

236

 

46

 

190

 

Total revenues

 

1,912

 

(1

)

1,913

 

1,979

 

17

 

1,962

 

2,297

 

61

 

2,236

 

2,292

 

132

 

2,160

 

2,597

 

198

 

2,399

 

Banking and deposit interest expense

 

38

 

1

 

37

 

33

 

1

 

32

 

28

 

3

 

25

 

21

 

 

21

 

20

 

 

20

 

Total net revenues

 

1,874

 

(2

)

1,876

 

1,946

 

16

 

1,930

 

2,269

 

58

 

2,211

 

2,271

 

132

 

2,139

 

2,577

 

198

 

2,379

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

432

 

 

432

 

462

 

 

462

 

504

 

 

504

 

525

 

 

525

 

621

 

 

621

 

Interest credited to fixed accounts

 

237

 

 

237

 

232

 

 

232

 

229

 

 

229

 

228

 

 

228

 

231

 

 

231

 

Benefits, claims, losses and settlement expenses

 

587

 

 

587

 

306

 

 

306

 

349

 

 

349

 

354

 

 

354

 

298

 

 

298

 

Amortization of deferred acquisition costs

 

(125

)

 

(125

)

(64

)

 

(64

)

120

 

 

120

 

118

 

 

118

 

171

 

 

171

 

Interest and debt expense

 

28

 

 

28

 

45

 

 

45

 

28

 

 

28

 

64

 

40

 

24

 

74

 

45

 

29

 

General and administrative expense

 

600

 

25

 

575

 

625

 

34

 

591

 

708

 

25

 

683

 

621

 

12

 

609

 

716

 

64

 

652

 

Total expenses

 

1,759

 

25

 

1,734

 

1,606

 

34

 

1,572

 

1,938

 

25

 

1,913

 

1,910

 

52

 

1,858

 

2,111

 

109

 

2,002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

115

 

(27

)

142

 

340

 

(18

)

358

 

331

 

33

 

298

 

361

 

80

 

281

 

466

 

89

 

377

 

Income tax provision

 

28

 

(7

)

35

 

80

 

(6

)

86

 

57

 

(1

)

58

 

65

 

(1

)

66

 

68

 

(18

)

86

 

Net income

 

87

 

(20

)

107

 

260

 

(12

)

272

 

274

 

34

 

240

 

296

 

81

 

215

 

398

 

107

 

291

 

Less: Net income (loss) attributable to noncontrolling interests

 

(8

)

(8

)

 

 

 

 

37

 

37

 

 

82

 

82

 

 

139

 

139

 

 

Net income attributable to Ameriprise Financial

 

$

95

 

$

(12

)

$

107

 

$

260

 

$

(12

)

$

272

 

$

237

 

$

(3

)

$

240

 

$

214

 

$

(1

)

$

215

 

$

259

 

$

(32

)

$

291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.41

 

 

 

$

0.47

 

$

1.00

 

 

 

$

1.05

 

$

0.92

 

 

 

$

0.93

 

$

0.82

 

 

 

$

0.83

 

$

0.99

 

 

 

$

1.11

 

Earnings per diluted share

 

$

0.41

 

 

 

$

0.47

 

$

1.00

 

 

 

$

1.04

 

$

0.90

 

 

 

$

0.91

 

$

0.81

 

 

 

$

0.81

 

$

0.98

 

 

 

$

1.10

 

Earnings per diluted share growth

 

(55.9

)%

 

 

(53.0

)%

NM

 

 

 

70.5

%

NM

 

 

 

NM

 

39.7

%

 

 

35.0

%

139.0

%

 

 

134.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue growth

 

(4.5

)%

 

 

(5.9

)%

19.7

%

 

 

(1.4

)%

70.0

%

 

 

24.7

%

32.3

%

 

 

24.9

%

37.5

%

 

 

26.8

%

Return on equity excluding AOCI (2)

 

(2.8

)%

 

 

3.7

%

1.5

%

 

 

5.3

%

8.8

%

 

 

9.2

%

9.3

%

 

 

9.7

%

10.6

%

 

 

11.4

%

Pretax margin

 

6.1

%

 

 

7.5

%

17.5

%

 

 

18.4

%

14.6

%

 

 

13.4

%

15.9

%

 

 

13.1

%

18.1

%

 

 

15.8

%

Margin

 

5.1

%

 

 

5.7

%

13.4

%

 

 

14.1

%

10.4

%

 

 

10.9

%

9.4

%

 

 

10.1

%

10.1

%

 

 

12.2

%

 


(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.

(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.

 

51



 

Ameriprise Financial, Inc.

Reconciliation of Consolidated GAAP Metrics to Operating Metrics

Second Quarter 2010

 

 

 

Year-to-Date 2009

 

Year-to-Date 2010

 

(in millions unless otherwise noted, unaudited)

 

GAAP

 

Less:
Adjustments
(1)

 

Operating

 

GAAP

 

Less:
Adjustments
(1)

 

Operating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

1,160

 

$

(1

)

$

1,161

 

$

1,729

 

$

(19

)

$

1,748

 

Distribution fees

 

662

 

 

662

 

844

 

 

844

 

Net investment income

 

929

 

23

 

906

 

1,244

 

246

 

998

 

Premiums

 

535

 

 

535

 

581

 

 

581

 

Other revenues

 

384

 

(19

)

403

 

491

 

103

 

388

 

Total revenues

 

3,670

 

3

 

3,667

 

4,889

 

330

 

4,559

 

Banking and deposit interest expense

 

80

 

2

 

78

 

41

 

 

41

 

Total net revenues

 

3,590

 

1

 

3,589

 

4,848

 

330

 

4,518

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

816

 

 

816

 

1,146

 

 

1,146

 

Interest credited to fixed accounts

 

442

 

 

442

 

459

 

 

459

 

Benefits, claims, losses and settlement expenses

 

687

 

 

687

 

652

 

 

652

 

Amortization of deferred acquisition costs

 

161

 

 

161

 

289

 

 

289

 

Interest and debt expense

 

54

 

 

54

 

138

 

85

 

53

 

General and administrative expense

 

1,181

 

46

 

1,135

 

1,337

 

76

 

1,261

 

Total expenses

 

3,341

 

46

 

3,295

 

4,021

 

161

 

3,860

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

249

 

(45

)

294

 

827

 

169

 

658

 

Income tax provision

 

46

 

(8

)

54

 

133

 

(19

)

152

 

Net income

 

203

 

(37

)

240

 

694

 

188

 

506

 

Less: Net income (loss) attributable to noncontrolling interests

 

(22

)

(22

)

 

221

 

221

 

 

Net income attributable to Ameriprise Financial

 

$

225

 

$

(15

)

$

240

 

$

473

 

$

(33

)

$

506

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

1.00

 

 

 

$

1.06

 

$

1.81

 

 

 

$

1.94

 

Earnings per diluted share

 

$

0.99

 

 

 

$

1.06

 

$

1.78

 

 

 

$

1.91

 

Earnings per diluted share growth

 

(43.4

)%

 

 

(44.2

)%

79.8

%

 

 

80.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue growth

 

(9.2

)%

 

 

(10.6

)%

35.0

%

 

 

25.9

%

Return on equity excluding AOCI (2)

 

(2.8

)%

 

 

3.7

%

10.6

%

 

 

11.4

%

Pretax margin

 

6.9

%

 

 

8.1

%

17.1

%

 

 

14.5

%

Margin

 

6.3

%

 

 

6.7

%

9.8

%

 

 

11.2

%

 


(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.

(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.

 

52


 

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