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) October 24, 2012
AMERIPRISE FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Delaware |
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001-32525 |
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13-3180631 |
(State or other jurisdiction |
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(Commission |
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(IRS Employer |
of incorporation) |
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File Number) |
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Identification No.) |
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55 Ameriprise Financial Center Minneapolis, Minnesota |
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55474 |
(Address of principal executive offices) |
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(Zip Code) |
Registrants 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 Condition.
On October 24, 2012, Ameriprise Financial, Inc. (the Company) issued a press release announcing its financial results for the third quarter of 2012. 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 September 30, 2012.
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 performance measures in these exhibits exclude the impact of consolidating certain investment entities (CIEs), as well as certain integration/restructuring charges, market impact on variable annuity guaranteed living benefits, realized gains (losses) and income (loss) from discontinued operations. Management believes that the presentation of these non-GAAP financial measures better reflects the underlying performance of our 2012 and 2011 core operations and facilitates a more meaningful trend analysis. Exhibits 99.1 and 99.2 also contain 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) (AOCI), fair value of hedges, unamortized discount, the net of assets and liabilities held for sale and the impact of consolidating the assets of certain CIEs. Management believes that these non-GAAP debt, capital and shareholders equity measures, and the corresponding ratios, better represent our capital structure. 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.
Our non-GAAP financial measures included in Exhibits 99.1 and 99.2, which our management views as important indicators of financial performance, include the following: adjusted net pretax operating margin; adjusted operating earnings; adjusted operating revenues; Ameriprise Financial shareholders equity from continuing operations excluding AOCI; Ameriprise Financial shareholders equity from continuing operations excluding CIEs; Ameriprise Financial shareholders equity from continuing operations excluding CIEs and AOCI; basic operating earnings per share; effective tax rate excluding noncontrolling interests; operating earnings; operating earnings per diluted share; operating effective tax rate; operating expenses; operating general and administrative expense; operating return on equity excluding AOCI; operating total net revenues; pretax operating earnings; pretax operating margin; return on equity excluding AOCI; total Ameriprise Financial capital from continuing operations excluding fair value of hedges, unamortized discount and equity of CIEs; total Ameriprise Financial long-term debt excluding fair value of hedges and unamortized discount; and total Ameriprise Financial long-term debt to total Ameriprise Financial capital from continuing operations excluding fair value of hedges, unamortized discount and equity of CIEs.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
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Description |
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Exhibit 99.1 |
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Press Release dated October 24, 2012 announcing financial results for the third quarter of 2012 |
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Exhibit 99.2 |
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Statistical Supplement for the quarterly period ended September 30, 2012 |
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.
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AMERIPRISE FINANCIAL, INC. | |
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(Registrant) | |
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Date: October 24, 2012 |
By |
/s/ Walter S. Berman |
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Walter S. Berman |
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Executive Vice President and |
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Chief Financial Officer |
Exhibit 99.1
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Ameriprise Financial, Inc. Ameriprise Financial Center Minneapolis, MN 55474
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News Release
Ameriprise Financial Reports
Third Quarter 2012 Results
Third quarter 2012 net income from continuing operations per diluted share was $0.79
Third quarter 2012 operating earnings per diluted share increased 11 percent to $1.32
and included a $0.22 per diluted share unfavorable impact from unlocking
Ameriprise Financial Board of Directors declares a $0.45 per share quarterly dividend, a 29 percent increase, or $0.10 per share, and authorizes an additional $2 billion share repurchase program
MINNEAPOLIS October 24, 2012 Ameriprise Financial, Inc. (NYSE: AMP) today reported third quarter 2012 net income from continuing operations attributable to Ameriprise Financial of $174 million, or $0.79 per diluted share, compared to $322 million, or $1.33 per diluted share, a year ago. Third quarter 2012 operating earnings were $289 million, or $1.32 per diluted share, compared to $289 million, or $1.19 per diluted share, a year ago.
Third quarter 2012 operating results included a previously announced $48 million, or $0.22 per diluted share, unfavorable impact from the companys annual review of insurance and annuity valuation assumptions and modeling changes (unlocking). This non-cash expense in the quarter compared to an unfavorable impact of $9 million, or $0.04 per diluted share, a year ago.
Third quarter 2012 operating net revenues of $2.5 billion were unchanged from a year ago and included lower revenues from the impact of unlocking. Net revenues in the year ago quarter included additional investment income recognition. Adjusting for these two items, third quarter 2012 operating net revenues grew 3 percent driven by strong Ameriprise advisor client net inflows and market appreciation, partially offset by a decline in net investment income reflecting continued low short-term interest rates as well as outflows in asset management.
Third quarter 2012 operating expenses were unchanged at $2.1 billion, as higher distribution-related expenses offset lower deferred acquisition costs (DAC) amortization. Operating general and administrative expenses were essentially flat compared to a year ago as ongoing expense controls offset investments.
The company maintains a strong financial foundation and continues to generate free cash flow. During the quarter, the company returned $416 million to shareholders through share repurchases and dividends, and has $482 million remaining on its current share repurchase authorization. In addition, the Ameriprise Financial Board of Directors declared a $0.45 per common share quarterly cash dividend, a 29 percent increase, or $0.10 per share, and also authorized a new $2 billion share repurchase program through 2014.
Return on shareholders equity excluding accumulated other comprehensive income (AOCI) was 10.7 percent for the 12 months ended September 30, 2012. Operating return on equity excluding AOCI was 15.4 percent for the same time period.
We had another good quarter, led by solid results in our advisory and asset management businesses, said Jim Cracchiolo, chairman and chief executive officer. While equity markets improved in the quarter, low interest rates continue to create headwinds.
Our advisory client base grew nicely in the quarter. We experienced strong retail client net inflows, including more than doubling net inflows into wrap accounts. In Asset Management, were generating good financial performance, and were seeing improvement in retail flows. And our annuity and protection businesses continue to generate good returns and remain well positioned.
The company continues to generate strong returns and good cash flow giving us the ability to return significant capital to shareholders. Today, we declared another increase in our quarterly dividend, up 29 percent. Its our fifth increase since early 2010, bringing our dividend yield to approximately 3 percent. We also authorized a new $2 billion share repurchase program as we accelerated our buybacks over the past two years.
Third Quarter 2012 Summary
In the third quarter of the year, the company conducts an annual review of insurance and annuity valuation assumptions relative to current experience and management expectations. To the extent that expectations change as a result of this review, the company updates valuation assumptions and the impact is reflected as part of annual unlocking. As previously announced, the unlocking impact in the quarter primarily reflected the low interest rate environment and the assumption of continued low interest rates over the near term.
Ameriprise Financial, Inc.
Third Quarter Summary
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Per Diluted Share |
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Quarter Ended |
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Quarter Ended |
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September 30, |
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September 30, |
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(in millions, except per share amounts, unaudited) |
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2012 |
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2011 |
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% |
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2012 |
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2011 |
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% |
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Net income from continuing operations attributable to Ameriprise Financial |
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$ |
174 |
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$ |
322 |
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(46 |
)% |
$ |
0.79 |
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$ |
1.33 |
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(41 |
)% |
Adjustments, net of tax |
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(see reconciliation on p. 12) |
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115 |
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(33 |
) |
NM |
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0.53 |
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(0.14 |
) |
NM |
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Operating earnings |
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$ |
289 |
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$ |
289 |
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% |
$ |
1.32 |
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$ |
1.19 |
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11 |
% |
Items included in operating earnings: |
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Annual unlocking, after-tax(1) |
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$ |
(48 |
) |
$ |
(9 |
) |
NM |
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$ |
(0.22 |
) |
$ |
(0.04 |
) |
NM |
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Market impact on insurance and annuity DAC and DSIC (mean reversion), after-tax(1) |
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$ |
10 |
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$ |
(27 |
) |
NM |
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$ |
0.05 |
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$ |
(0.11 |
) |
NM |
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Weighted average common shares outstanding: |
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Basic |
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215.0 |
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238.0 |
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Diluted |
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219.1 |
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242.0 |
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(1) After-tax is calculated using the statutory tax rate of 35%.
NM Not Meaningful variance of greater than 100%
The company believes the presentation of operating earnings best represents the economics of the business. Operating earnings, after-tax, exclude the consolidation of certain investment entities; net realized gains or losses; integration and restructuring charges; the market impact on variable annuity guaranteed living benefits net of hedges and related DAC and deferred sales inducement costs (DSIC) amortization; and income or loss from discontinued operations.
Taxes
The third quarter 2012 operating effective tax rate was 27.2 percent compared to 23.9 percent a year ago. The third quarter 2012 tax rate was affected by investment losses associated with the Ameriprise Bank transition the company will realize related investment gains in the fourth quarter that will offset these losses. The company expects its full year 2012 operating effective tax rate will be slightly below its previously disclosed 28 to 30 percent range.
Third Quarter 2012 Business Highlights
· Assets under management and administration increased 13 percent from a year ago to $678 billion primarily driven by market appreciation.
· Ameriprise advisor client assets grew 18 percent from a year ago to $345 billion driven by market appreciation and strong net inflows.
· Wrap assets grew 24 percent to $121 billion, as wrap net inflows in the quarter more than doubled to $2.1 billion compared to the prior year.
· The company continued to recruit experienced advisors to Ameriprise, adding 106 advisors in the quarter and 314 year to date.
· In its study, Advisor Channel Migration TrendsTM 2012, Cogent Research listed Ameriprise as a top five firm for financial advisors who are likely to move to another broker-dealer.
· During the quarter, the company completed its multi-year brokerage conversion project that will help advisors serve clients more efficiently and effectively.
· Heardable Score, which measures online brand performance, ranked Ameriprise third among full service investment brands online.
· Asset Management net outflows of $3.5 billion in the quarter were driven by net outflows in institutional and alternative portfolios. Retail net flows were slightly positive, as strong net inflows at Threadneedle were offset by net outflows at Columbia, including outflows from a third-party subadvisor and the Value and Restructuring fund. In institutional, net outflows of $2.0 billion were driven by Threadneedle outflows of $1.1 billion of legacy insurance assets and $0.9 billion from the previously announced retender of low margin pension assets, which more than offset improved results at Columbia. Alternative net outflows of $1.6 billion were primarily driven by hedge funds.
· On a global basis, the company had 116 four- and five-star Morningstar-rated funds, including 53 Columbia Management funds and 63 Threadneedle funds.
· RiverSource Life continued to generate strong sales of its indexed universal life insurance product with total life and disability income insurance cash sales increasing during each of the last four quarters. Ameriprise Auto & Home continued to generate solid core business results with policies in force growing a steady 8 percent.
Balance Sheet Summary as of September 30, 2012
Excess capital position and prudent capital management
· Cash and cash equivalents were $3.3 billion, with $0.7 billion at the holding company and $0.8 billion in free cash. In addition, the holding company holds more than $0.8 billion in high-quality, short-duration securities.
· Excess capital remained at $2.0+ billion after the return of $416 million to shareholders during the quarter through share repurchases and dividends.
· The company repurchased 6.3 million shares of its common stock in the quarter for $340 million. The company has $482 million remaining on its current share repurchase authorization. In addition, the board of directors authorized a new $2 billion share repurchase program through 2014.
· The board of directors declared a quarterly cash dividend of $0.45 per common share payable on November 16, 2012 to shareholders of record as of November 5, 2012. The dividend represents a 29 percent increase, or $0.10 per share. Since February 2010, the company has increased its regular quarterly dividend 165 percent.
· The total investment portfolio remains well positioned with no holdings of sovereign debt in financially troubled European countries and has $3.1 billion in net unrealized gains.
Ameriprise Bank Transition Update
In the second quarter of 2012, the company announced its intention to transition Ameriprise Bank from a federal savings bank to a non-depository trust company. The implementation of the deposit and loan disposals is underway and bank operations are on track to close by year end. Final approvals from the appropriate federal and state regulators are pending.
As part of this process, the company recognized $62 million of net investment losses in the quarter and will realize related investment gains in the fourth quarter that will offset third quarter losses.
Segment Summaries
Ameriprise Financial, Inc.
Advice & Wealth Management Segment Operating Results
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Quarter Ended September 30, |
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% Better/ |
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(in millions, unaudited) |
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2012 |
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2011 |
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(Worse) |
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Advice & Wealth Management |
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Net revenues |
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$ |
961 |
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$ |
938 |
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2 |
% |
Expenses |
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842 |
|
822 |
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(2 |
) | ||
Pretax operating earnings |
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$ |
119 |
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$ |
116 |
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3 |
|
Item included in operating earnings: |
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Investment income recognition |
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$ |
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$ |
6 |
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NM |
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Quarter Ended September 30, |
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% Better/ |
| ||||
|
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2012 |
|
2011 |
|
(Worse) |
| ||
Retail client assets (billions) |
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$ |
345 |
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$ |
293 |
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18 |
% |
Mutual fund wrap net flows (billions) |
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$ |
2.1 |
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$ |
0.8 |
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NM |
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Operating net revenue per branded advisor (thousands) |
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$ |
98 |
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$ |
97 |
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1 |
% |
NM Not Meaningful variance of greater than 100%
Advice & Wealth Management pretax operating earnings were $119 million. Pretax operating earnings grew 8 percent after adjusting for $6 million of additional investment income recognition in the year ago quarter. Results in the third quarter reflected revenue growth, continued expense management and ongoing investments in the business, including a new brokerage platform. Third quarter 2012 pretax operating margin remained strong at 12.4 percent.
Operating net revenues increased 2 percent to $961 million, or 3 percent after adjusting for the investment income item in the year ago quarter. Solid underlying revenue growth was driven by market appreciation, advisor business growth and client net inflows, partially offset by lower transactional revenues and low interest rates. Total retail client assets grew 18 percent to $345 billion, reflecting market appreciation and continued strong client net inflows.
Operating expenses increased 2 percent to $842 million, primarily reflecting higher distribution expenses associated with strong growth in client assets. General and administrative expenses declined 2 percent, demonstrating on-going expense discipline, which more than offset investments for business growth.
Ameriprise Financial, Inc.
Asset Management Segment Operating Results
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Quarter Ended September 30, |
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% Better/ |
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(in millions, unaudited) |
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2012 |
|
2011 |
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(Worse) |
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Asset Management |
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Net revenues |
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$ |
733 |
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$ |
705 |
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4 |
% |
Expenses |
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578 |
|
586 |
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1 |
| ||
Pretax operating earnings |
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$ |
155 |
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$ |
119 |
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30 |
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Items included in operating earnings: |
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Threadneedle project implementation costs |
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$ |
|
|
$ |
(10 |
) |
NM |
|
Hedge fund redemption performance fees |
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$ |
7 |
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$ |
|
|
NM |
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Quarter Ended September 30, |
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% Better/ |
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2012 |
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2011 |
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(Worse) |
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Total segment AUM(1) (billions) |
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$ |
461 |
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$ |
417 |
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11 |
% |
Columbia Management AUM |
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$ |
340 |
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$ |
325 |
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5 |
% |
Threadneedle AUM |
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$ |
124 |
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$ |
96 |
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28 |
% |
Total segment net flows (billions) |
|
$ |
(3.5 |
) |
$ |
(5.2 |
) |
33 |
% |
Retail net flows |
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$ |
0.1 |
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$ |
(3.1 |
) |
NM |
|
Institutional net flows |
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$ |
(2.0 |
) |
$ |
(2.0 |
) |
(3 |
)% |
Alternative net flows |
|
$ |
(1.6 |
) |
$ |
(0.1 |
) |
NM |
|
(1) Subadvisory eliminations between Columbia Management and Threadneedle are included in the companys Third Quarter 2012 Statistical Supplement available at ir.ameriprise.com.
NM Not Meaningful variance of greater than 100%
Asset Management pretax operating earnings were $155 million, up 30 percent from a year ago, driven by equity market appreciation, $7 million of redemption-driven hedge fund performance fees and continued expense management. Earnings growth was partially offset by the impact of net outflows and a shift in flows from equity to fixed income. Third quarter 2012 adjusted net pretax operating margin was 37.6 percent compared to 32.7 percent a year ago.
Operating net revenues increased 4 percent to $733 million, primarily driven by growth in assets from market appreciation and redemption-driven hedge fund performance fees, partially offset by net outflows and the shift in flows from equity to fixed income.
Operating expenses improved by 1 percent to $578 million. General and administrative expenses declined $7 million from a year ago reflecting the companys focus on re-engineering to fund investments in the business and included higher compensation-related expenses associated with hedge fund performance fees. The year ago quarter included $10 million of project implementation costs at Threadneedle.
Total segment assets under management increased 11 percent from a year ago to $461 billion, reflecting market appreciation, partially offset by net outflows.
Asset Management net outflows of $3.5 billion in the quarter were driven by net outflows in institutional and alternative portfolios. Retail net flows were slightly positive, as strong net inflows at Threadneedle were offset by net outflows at Columbia, including outflows from a third-party subadvisor and the Value and Restructuring fund. In institutional, net outflows of $2.0 billion were driven by Threadneedle outflows of $1.1 billion of legacy insurance assets and $0.9 billion from the previously announced retender of low margin pension assets, which more than offset improved results at Columbia. Alternative net outflows of $1.6 billion were primarily related to the termination of a hedge fund portfolio manager.
Ameriprise Financial, Inc.
Annuities Segment Operating Results
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Quarter Ended September 30, |
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% Better/ |
| ||||
(in millions, unaudited) |
|
2012 |
|
2011 |
|
(Worse) |
| ||
|
|
|
|
|
|
|
| ||
Annuities |
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|
|
|
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| ||
Net revenues |
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$ |
632 |
|
$ |
688 |
|
(8 |
)% |
Expenses |
|
541 |
|
553 |
|
2 |
| ||
Pretax operating earnings |
|
$ |
91 |
|
$ |
135 |
|
(33 |
) |
|
|
|
|
|
|
|
| ||
Variable annuity pretax operating earnings |
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$ |
31 |
|
$ |
60 |
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(48 |
)% |
Fixed annuity pretax operating earnings |
|
60 |
|
75 |
|
(20 |
) | ||
Total pretax operating earnings |
|
$ |
91 |
|
$ |
135 |
|
(33 |
) |
|
|
|
|
|
|
|
| ||
Items included in operating earnings: |
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|
|
|
|
|
| ||
Variable annuities: |
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|
|
|
|
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| ||
Annual unlocking |
|
$ |
(74 |
) |
$ |
17 |
|
NM |
|
Market impact on DAC and DSIC (mean reversion) |
|
14 |
|
(39 |
) |
NM |
| ||
Investment income recognition |
|
|
|
3 |
|
NM |
| ||
Total variable annuities impact |
|
$ |
(60 |
) |
$ |
(19 |
) |
NM |
|
Fixed annuities: |
|
|
|
|
|
|
| ||
Annual unlocking |
|
$ |
14 |
|
$ |
(16 |
) |
NM |
|
Investment income recognition |
|
|
|
31 |
|
NM |
| ||
Total fixed annuities impact |
|
$ |
14 |
|
$ |
15 |
|
(7 |
)% |
|
|
Quarter Ended September 30, |
|
% Better/ |
| ||||
|
|
2012 |
|
2011 |
|
(Worse) |
| ||
Variable annuity ending account balances (billions) |
|
$ |
67.5 |
|
$ |
58.9 |
|
15 |
% |
Variable annuity net flows (millions) |
|
$ |
(182 |
) |
$ |
179 |
|
NM |
|
Fixed annuity ending account balances (billions) |
|
$ |
14.0 |
|
$ |
14.2 |
|
(1 |
)% |
Fixed annuity net flows (millions) |
|
$ |
(214 |
) |
$ |
(160 |
) |
(34 |
)% |
NM Not Meaningful variance of greater than 100%
Annuities pretax operating earnings were $91 million reflecting the impact of unlocking and low interest rates, partially offset by market appreciation.
Variable annuity operating earnings were $31 million and included the unfavorable unlocking impact, partially offset by a benefit from the market impact on DAC and DSIC. Earnings in the year ago quarter included $3 million of additional investment income recognition. Adjusting for these items in both periods, variable annuity earnings increased 15 percent reflecting strong market appreciation.
Fixed annuity operating earnings were $60 million and included a favorable unlocking impact. Earnings in the year ago quarter included $31 million of additional investment income recognition. Adjusting for these items in both periods, fixed annuity earnings declined 23 percent, primarily from the continued low interest rate environment.
RiverSource variable annuity account balances increased 15 percent to $67.5 billion driven by market appreciation. Variable annuity net outflows in the quarter reflected the closed book of annuities sold through third parties and $58 million of net inflows in the Ameriprise channel. RiverSource fixed annuity account balances declined 1 percent to $14.0 billion due to ongoing net outflows resulting from low client demand given current interest rates.
Ameriprise Financial, Inc.
Protection Segment Operating Results
|
|
Quarter Ended September 30, |
|
% Better/ |
| ||||
(in millions, unaudited) |
|
2012 |
|
2011 |
|
(Worse) |
| ||
|
|
|
|
|
|
|
| ||
Protection |
|
|
|
|
|
|
| ||
Net revenues |
|
$ |
496 |
|
$ |
502 |
|
(1 |
)% |
Expenses |
|
407 |
|
432 |
|
6 |
| ||
Pretax operating earnings |
|
$ |
89 |
|
$ |
70 |
|
27 |
|
|
|
|
|
|
|
|
| ||
Items included in operating earnings: |
|
|
|
|
|
|
| ||
Market impact on DAC (mean reversion) |
|
$ |
1 |
|
$ |
(3 |
) |
NM |
|
Annual unlocking |
|
$ |
(13 |
) |
$ |
(15 |
) |
13 |
% |
Auto & Home catastrophe losses(1) |
|
$ |
|
|
$ |
(18 |
) |
NM |
|
|
|
Quarter Ended September 30, |
|
% Better/ |
| ||||
|
|
2012 |
|
2011 |
|
(Worse) |
| ||
Life insurance in force (billions) |
|
$ |
191 |
|
$ |
191 |
|
|
|
VUL/UL ending account balances (billions) |
|
$ |
9.8 |
|
$ |
8.9 |
|
10 |
% |
Auto & home policies in force (thousands) |
|
742 |
|
687 |
|
8 |
% |
(1) Represents above normal expected level of claims experience. On a gross basis, catastrophe losses were $23 million for 3Q 2011.
NM Not Meaningful variance of greater than 100%
Protection pretax operating earnings increased 27 percent to $89 million, primarily driven by improved auto and home results partially offset by lower long term care results. The unfavorable impact of unlocking was $13 million in the quarter compared to $15 million a year ago.
Operating net revenues decreased 1 percent to $496 million as auto and home premium growth was more than offset by the unfavorable impact of unlocking. Operating expenses declined 6 percent to $407 million, primarily driven by high auto and home catastrophe losses a year ago and lower DAC amortization due to unlocking.
Auto & Home continued its steady growth in policies, up 8 percent compared to a year ago.
Ameriprise Financial, Inc.
Corporate & Other Segment Operating Results
|
|
Quarter Ended September 30, |
|
% Better/ |
| ||||
(in millions, unaudited) |
|
2012 |
|
2011 |
|
(Worse) |
| ||
Corporate & Other |
|
|
|
|
|
|
| ||
Net revenues |
|
$ |
5 |
|
$ |
(7 |
) |
NM |
|
Expenses |
|
62 |
|
53 |
|
(17 |
)% | ||
Pretax loss |
|
$ |
(57 |
) |
$ |
(60 |
) |
5 |
|
NM Not Meaningful variance of greater than 100%
Corporate & Other pretax operating loss was $57 million for the quarter compared to $60 million a year ago.
Contacts |
|
|
|
|
|
Investor Relations: |
|
Media Relations: |
|
|
|
Alicia A. Charity |
|
Paul W. Johnson |
Ameriprise Financial |
|
Ameriprise Financial |
(612) 671-2080 |
|
(612) 671-0625 |
alicia.a.charity@ampf.com |
|
paul.w.johnson@ampf.com |
|
|
|
Chad J. Sanner |
|
|
Ameriprise Financial |
|
|
(612) 671-4676 |
|
|
chad.j.sanner@ampf.com |
|
|
At Ameriprise Financial, we have been helping people feel confident about their financial future since 1894. With outstanding asset management, advisory and insurance capabilities and a nationwide network of 10,000 financial advisors, we have the strength and expertise to serve the full range of individual and institutional investors financial needs. For more information, or to find an Ameriprise financial advisor, visit ameriprise.com.
Ameriprise Financial Services, Inc. offers financial planning services, investments, insurance and annuity products. Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA and managed by Columbia Management Investment Advisers, LLC. Threadneedle International Limited is an SEC- and FSA-registered investment adviser affiliate of Columbia Management Investment Advisers, LLC based in the U.K. Auto and home insurance is underwritten by IDS Property Casualty Insurance Company, or in certain states, Ameriprise Insurance Company, both in De Pere, WI. 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 managements 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 regarding the companys assumption of continued low interest rates over the near-term;
· the statements in this news release regarding the companys plan to transition its federal savings bank subsidiary, Ameriprise Bank, FSB, to a non-depository national trust bank and the expectation that bank operations are on track to close by year end;
· the statement in this news release that, in connection with the Ameriprise Bank transition, the company will realize investment gains during the fourth quarter that will offset third quarter investment losses;
· the statement in this news release that the company expects its full year 2012 operating effective tax rate to be slightly below the 28 to 30 percent range;
· the statement in this news release regarding the companys belief that the new brokerage platform will help advisors serve clients more efficiently and effectively;
· statements of the companys plans, intentions, positioning, expectations, objectives or goals, including those relating to asset flows, mass affluent and affluent client acquisition strategy, client retention and growth of our client base, financial advisor productivity, retention, recruiting and enrollments, acquisition integration, general and administrative costs, consolidated tax rate, return of capital to shareholders, and excess capital position and financial flexibility to capture additional growth opportunities;
· 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:
· conditions in the interest rate, credit default, equity market and foreign exchange environments, including changes in valuations, liquidity and volatility;
· changes in and the adoption of 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 rules and regulations implemented or to be implemented in connection with the Dodd-Frank Wall Street Reform and Consumer Protection Act;
· investment management performance and distribution partner and consumer acceptance of the companys products;
· effects of competition in the financial services industry and changes in product distribution mix and distribution channels;
· changes to the companys reputation that may arise from employee or affiliated advisor misconduct, legal or regulatory actions, improper management of conflicts of interest or otherwise;
· the companys 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 companys regulators, advisors, distribution partners or customers in response to any change or prospect of change in any such opinion;
· changes to the availability and cost of liquidity and the Companys credit capacity that may arise due to shifts in market conditions, the Companys credit ratings and the overall availability of credit;
· 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 companys 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 companys regulators,
advisors, distribution partners or customers in response to any such evaluation or prospect of changes in evaluation;
· experience deviations from the companys assumptions regarding morbidity, mortality and persistency in certain annuity and insurance products, or from assumptions regarding market returns assumed in valuing or unlocking DAC and DSIC or market volatility underlying our valuation and hedging of guaranteed living benefit annuity riders, or from assumptions regarding anticipated claims and losses relating to our automobile and home insurance products;
· changes in capital requirements that may be indicated, required or advised by regulators or rating agencies;
· the impacts of the companys efforts to improve distribution economics and to grow third-party distribution of its products;
· the companys ability to pursue and complete strategic transactions and initiatives, including acquisitions, divestitures, restructurings, joint ventures and the development of new products and services;
· the companys 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 may pursue and contract to complete in the future, 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.
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, 2011 and under Part 2, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 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 companys Quarterly Report on Form 10-Q for the quarter ended September 30, 2012. For information about Ameriprise Financial entities, please refer to the Third Quarter 2012 Statistical Supplement available at ir.ameriprise.com and the tables that follow in this news release.
Ameriprise Financial, Inc.
Reconciliation Table: Earnings
|
|
Quarter Ended |
|
Per Diluted Share |
| ||||||||
(in millions, except per share amounts, unaudited) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
Net income attributable to Ameriprise Financial |
|
$ |
173 |
|
$ |
324 |
|
$ |
0.79 |
|
$ |
1.34 |
|
Less: Income (loss) from discontinued operations, net of tax |
|
(1 |
) |
2 |
|
|
|
0.01 |
| ||||
Net income from continuing operations attributable to Ameriprise Financial |
|
174 |
|
322 |
|
0.79 |
|
1.33 |
| ||||
Add: Market impact on variable annuity guaranteed living benefits, net of tax(1) |
|
60 |
|
(50 |
) |
0.28 |
|
(0.21 |
) | ||||
Add: Integration/restructuring charges, net of tax(1) |
|
11 |
|
15 |
|
0.05 |
|
0.06 |
| ||||
Add: Net realized losses (gains), net of tax(1) |
|
44 |
|
2 |
|
0.20 |
|
0.01 |
| ||||
Operating earnings |
|
$ |
289 |
|
$ |
289 |
|
$ |
1.32 |
|
$ |
1.19 |
|
|
|
|
|
|
|
|
|
|
| ||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
| ||||
Basic |
|
215.0 |
|
238.0 |
|
|
|
|
| ||||
Diluted |
|
219.1 |
|
242.0 |
|
|
|
|
|
(1) Calculated using the statutory tax rate of 35%.
Ameriprise Financial, Inc.
Reconciliation Table: Total Net Revenues
|
|
Quarter Ended September 30, |
| ||||
(in millions, unaudited) |
|
2012 |
|
2011 |
| ||
Total net revenues |
|
$ |
2,468 |
|
$ |
2,455 |
|
Less: CIEs revenue |
|
27 |
|
(52 |
) | ||
Less: Net realized gains (losses) |
|
(68 |
) |
(2 |
) | ||
Less: Integration/restructuring charges |
|
(8 |
) |
|
| ||
Operating total net revenues |
|
2,517 |
|
2,509 |
| ||
Less: Annual unlocking |
|
(41 |
) |
(20 |
) | ||
Less: Investment income recognition |
|
|
|
43 |
| ||
Operating total net revenues adjusted for disclosed items |
|
$ |
2,558 |
|
$ |
2,486 |
|
Ameriprise Financial, Inc.
Reconciliation Table: Total Expenses
|
|
Quarter Ended September 30, |
| ||||
(in millions, unaudited) |
|
2012 |
|
2011 |
| ||
Total expenses |
|
$ |
2,269 |
|
$ |
2,129 |
|
Less: CIEs expenses |
|
49 |
|
53 |
| ||
Less: Market impact on variable annuity guaranteed living benefits |
|
91 |
|
(77 |
) | ||
Less: Integration/restructuring charges |
|
9 |
|
24 |
| ||
Operating expenses |
|
$ |
2,120 |
|
$ |
2,129 |
|
Ameriprise Financial, Inc.
Reconciliation Table: General and Administrative Expenses
|
|
Quarter Ended September 30, |
| ||||
(in millions, unaudited) |
|
2012 |
|
2011 |
| ||
General and administrative expenses |
|
$ |
731 |
|
$ |
743 |
|
Less: CIEs expenses |
|
5 |
|
6 |
| ||
Less: Integration/restructuring charges |
|
9 |
|
24 |
| ||
Operating general and administrative expenses |
|
$ |
717 |
|
$ |
713 |
|
Ameriprise Financial, Inc.
Reconciliation Table: Effective Tax Rate
|
|
Quarter Ended September 30, 2012 |
| ||||
(in millions, unaudited) |
|
GAAP |
|
Operating |
| ||
Income from continuing operations before income tax provision |
|
$ |
199 |
|
$ |
397 |
|
Less: Pretax loss attributable to noncontrolling interests |
|
(22 |
) |
|
| ||
Income from continuing operations before income tax provision excluding consolidated investment entities (CIEs) |
|
$ |
221 |
|
$ |
397 |
|
Income tax provision from continuing operations |
|
$ |
47 |
|
$ |
108 |
|
Effective tax rate |
|
23.8 |
% |
27.2 |
% | ||
Effective tax rate excluding noncontrolling interests |
|
21.4 |
% |
27.2 |
% |
Ameriprise Financial, Inc.
Reconciliation Table: Effective Tax Rate
|
|
Quarter Ended September 30, 2011 |
| ||||
(in millions, unaudited) |
|
GAAP |
|
Operating |
| ||
Income from continuing operations before income tax provision |
|
$ |
326 |
|
$ |
380 |
|
Less: Pretax loss attributable to noncontrolling interests |
|
(105 |
) |
|
| ||
Income from continuing operations before income tax provision excluding consolidated investment entities (CIEs) |
|
$ |
431 |
|
$ |
380 |
|
Income tax provision from continuing operations |
|
$ |
109 |
|
$ |
91 |
|
Effective tax rate |
|
33.2 |
% |
23.9 |
% | ||
Effective tax rate excluding noncontrolling interests |
|
25.2 |
% |
23.9 |
% |
Ameriprise Financial, Inc.
Reconciliation Table: Asset Management Adjusted Net Pretax Operating Margin
|
|
Quarter Ended |
| ||||
(in millions, unaudited) |
|
September 30, |
|
September 30, |
| ||
Operating total net revenues |
|
$ |
733 |
|
$ |
705 |
|
Less: Distribution pass through revenues |
|
203 |
|
207 |
| ||
Less: Subadvisory and other pass through revenues |
|
105 |
|
91 |
| ||
Adjusted operating revenues |
|
$ |
425 |
|
$ |
407 |
|
|
|
|
|
|
| ||
Pretax operating earnings |
|
$ |
155 |
|
$ |
119 |
|
Less: Operating net investment income |
|
5 |
|
(4 |
) | ||
Add: Amortization of intangibles |
|
10 |
|
10 |
| ||
Adjusted operating earnings |
|
$ |
160 |
|
$ |
133 |
|
|
|
|
|
|
| ||
Adjusted net pretax operating margin |
|
37.6 |
% |
32.7 |
% |
Ameriprise Financial, Inc.
Reconciliation Table: Return on Equity (ROE) Excluding Accumulated
Other Comprehensive Income AOCI
|
|
Twelve Months Ended |
| ||||
(in millions, unaudited) |
|
2012 |
|
2011 |
| ||
Net income attributable to Ameriprise Financial |
|
$ |
876 |
|
$ |
1,144 |
|
Less: Income (loss) from discontinued operations, net of tax |
|
10 |
|
(99 |
) | ||
Net income from continuing operations attributable to Ameriprise Financial, as reported |
|
866 |
|
1,243 |
| ||
Less: Adjustments (1) |
|
(320 |
) |
(53 |
) | ||
Operating earnings |
|
$ |
1,186 |
|
$ |
1,296 |
|
|
|
|
|
|
| ||
Total Ameriprise Financial, Inc. shareholders equity |
|
$ |
9,057 |
|
$ |
9,303 |
|
Less: Assets and liabilities held for sale |
|
21 |
|
50 |
| ||
Less: Accumulated other comprehensive income, net of tax |
|
912 |
|
753 |
| ||
Total Ameriprise Financial, Inc. shareholders equity from continuing operations, excluding AOCI |
|
8,124 |
|
8,500 |
| ||
Less: Equity impacts attributable to the consolidated investment entities |
|
406 |
|
510 |
| ||
Operating equity |
|
$ |
7,718 |
|
$ |
7,990 |
|
|
|
|
|
|
| ||
Return on equity, excluding AOCI |
|
10.7 |
% |
14.6 |
% | ||
Operating return on equity, excluding AOCI (2) |
|
15.4 |
% |
16.2 |
% |
(1) Adjustments reflect the trailing twelve months sum of after-tax net realized gains/losses; market impact on variable annuity guaranteed living benefits net of hedges and related DSIC and DAC amortization; and integration/restructuring charges.
(2) Operating return on equity excluding accumulated other comprehensive income (AOCI) is calculated using the trailing twelve months of earnings excluding the after-tax net realized gains/losses; market impact on variable annuity guaranteed living benefits, net of hedges and related DSIC and DAC amortization; integration/restructuring charges; and discontinued operations in the numerator, and Ameriprise Financial shareholders equity excluding AOCI; the impact of consolidating investment entities; and the assets and liabilities held for sale using a five-point average of quarter-end equity in the denominator.
Ameriprise Financial, Inc.
Consolidated GAAP Results
|
|
Quarter Ended September 30, |
|
% Better/ |
| ||||
(in millions, unaudited) |
|
2012 |
|
2011 |
|
(Worse) |
| ||
Revenues |
|
|
|
|
|
|
| ||
Management and financial advice fees |
|
$ |
1,191 |
|
$ |
1,127 |
|
6 |
% |
Distribution fees |
|
391 |
|
389 |
|
1 |
| ||
Net investment income |
|
427 |
|
445 |
|
(4 |
) | ||
Premiums |
|
309 |
|
311 |
|
(1 |
) | ||
Other revenues |
|
161 |
|
195 |
|
(17 |
) | ||
Total revenues |
|
2,479 |
|
2,467 |
|
|
| ||
Banking and deposit interest expense |
|
11 |
|
12 |
|
8 |
| ||
Total net revenues |
|
2,468 |
|
2,455 |
|
1 |
| ||
Expenses |
|
|
|
|
|
|
| ||
Distribution expenses |
|
667 |
|
641 |
|
(4 |
) | ||
Interest credited to fixed accounts |
|
207 |
|
214 |
|
3 |
| ||
Benefits, claims, losses and settlement expenses |
|
529 |
|
258 |
|
NM |
| ||
Amortization of deferred acquisition costs |
|
67 |
|
202 |
|
67 |
| ||
Interest and debt expense |
|
68 |
|
71 |
|
4 |
| ||
General and administrative expense |
|
731 |
|
743 |
|
2 |
| ||
Total expenses |
|
2,269 |
|
2,129 |
|
(7 |
) | ||
Income from continuing operations before income tax provision |
|
199 |
|
326 |
|
(39 |
) | ||
Income tax provision |
|
47 |
|
109 |
|
57 |
| ||
Income from continuing operations |
|
152 |
|
217 |
|
(30 |
) | ||
Income (loss) from discontinued operations, net of tax |
|
(1 |
) |
2 |
|
NM |
| ||
Net income |
|
151 |
|
219 |
|
(31 |
) | ||
Less: Net loss attributable to noncontrolling interests |
|
(22 |
) |
(105 |
) |
79 |
| ||
Net income attributable to Ameriprise Financial |
|
$ |
173 |
|
$ |
324 |
|
(47 |
)% |
NM Not Meaningful variance of greater than 100%
Exhibit 99.2
Statistical Supplement Package
(unaudited)
Third Quarter 2012
Ameriprise Financial, Inc.
Statistical Supplement Information
Table of Contents
|
Page |
Ameriprise Financial, Inc. |
|
Statistical Supplement Presentation |
4 |
Consolidated GAAP Income Statements |
5 |
Consolidated Operating Results and Highlights |
6 |
Common Share and Capital Summary |
8 |
Segment Summary |
10 |
Advice & Wealth Management Segment |
|
Segment Operating Income Statements |
12 |
Segment Metrics |
13 |
Asset Management Segment |
|
Segment Operating Income Statements |
15 |
Segment Metrics |
16 |
Columbia Asset Management Products |
17 |
Threadneedle Asset Management Products |
18 |
Retail Fund Performance - Columbia |
19 |
Retail Fund Performance - Threadneedle |
20 |
Annuities Segment |
|
Segment Operating Income Statements |
22 |
Segment Metrics |
23 |
Protection Segment |
|
Segment Operating Income Statements |
25 |
Segment Metrics |
26 |
Corporate & Other Segment |
|
Segment Operating Income Statements |
28 |
Eliminations |
|
Operating Income Statements |
29 |
Balance Sheet and Ratings Information |
|
Consolidated Balance Sheets |
31 |
Capital and Ratings Information |
32 |
Investments |
33 |
Non-GAAP Financial Information |
34 |
Glossary of Selected Terminology |
|
Glossary of Selected Terminology - Segments |
35 |
Glossary of Selected Terminology |
36 |
Exhibit A |
|
Disclosed Items |
38 |
Exhibit B |
|
Non-GAAP Financial Measure Reconciliations |
44 |
Ameriprise Financial, Inc.
Statistical Supplement Presentation
Third Quarter 2012
Ameriprise Financial, Inc. (Ameriprise Financial or the Company) prepares its financial statements in accordance with generally accepted accounting principles (GAAP). Management believes that operating measures, which exclude net realized gains or losses; the market impact on variable annuity guaranteed living benefits, net of hedges and the related deferred sales inducement costs (DSIC) and deferred acquisition costs (DAC) amortization; integration and restructuring charges; income (loss) from discontinued operations and the impact of consolidating consolidated investment entities (CIEs), best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis. The Company also uses a number of non-GAAP financial measures to evaluate its financial performance on a basis comparable to that used by some securities analysts and investors. However, these measures are not a substitute for GAAP. Therefore, reconciliations to GAAP measures are provided on page 6 and in Exhibit B Non-GAAP Financial Measure Reconciliations on pages 44 and 45.
The market impact on variable annuity guaranteed living benefits includes changes in liability values caused by changes in financial market conditions, net of changes in associated economic hedge values. The market impact also includes certain valuation adjustments made in accordance with Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value Measurements and Disclosures (ASC 820), including the impact on liability values of discounting projected benefits to reflect a current estimate of RiverSource Life Insurance Companys nonperformance spread. Further, the market impact is net of related impacts on DAC and DSIC amortization. The market impact relates to guaranteed minimum accumulation benefits and non-life contingent guaranteed minimum withdrawal benefits accounted for at fair value as embedded derivatives.
Operating earnings is the measure of segment profit or loss management uses to evaluate segment performance. Operating earnings should not be viewed as a substitute for GAAP income from continuing operations before income tax provision. Management believes the presentation of segment operating earnings as we measure it for management purposes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitating a more meaningful trend analysis.
In addition, management uses adjusted net pretax operating margin in the Asset Management segment to evaluate segment performance on a basis comparable to other asset managers. In the Asset Management segment, operating revenues are adjusted to exclude distribution pass through revenues and subadvisory and other pass through revenues, and operating earnings are adjusted to exclude operating net investment income and amortization of intangibles.
Ameriprise Financial, Inc.
Consolidated GAAP Income Statements
Third Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Year Comparisons |
|
|
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
Qtr Chg - 3Q |
|
YTD Chg - 3Q |
|
Seq Qtr Chg - 3Q |
| ||||||||||||||||||
(in millions, except per share amounts, unaudited) |
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
2011 |
|
2012 |
|
Diff. |
|
% |
|
Diff. |
|
% |
|
Diff. |
|
% |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Management and financial advice fees |
|
$ |
1,127 |
|
$ |
1,101 |
|
$ |
1,132 |
|
$ |
1,152 |
|
$ |
1,191 |
|
$ |
3,436 |
|
$ |
3,475 |
|
$ |
64 |
|
6 |
% |
$ |
39 |
|
1 |
% |
$ |
39 |
|
3 |
% |
Distribution fees |
|
389 |
|
371 |
|
402 |
|
396 |
|
391 |
|
1,202 |
|
1,189 |
|
2 |
|
1 |
% |
(13 |
) |
(1 |
)% |
(5 |
) |
(1 |
)% | ||||||||||
Net investment income |
|
445 |
|
588 |
|
531 |
|
472 |
|
427 |
|
1,458 |
|
1,430 |
|
(18 |
) |
(4 |
)% |
(28 |
) |
(2 |
)% |
(45 |
) |
(10 |
)% | ||||||||||
Premiums |
|
311 |
|
305 |
|
301 |
|
302 |
|
309 |
|
915 |
|
912 |
|
(2 |
) |
(1 |
)% |
(3 |
) |
|
|
7 |
|
2 |
% | ||||||||||
Other revenues |
|
195 |
|
228 |
|
206 |
|
202 |
|
161 |
|
635 |
|
569 |
|
(34 |
) |
(17 |
)% |
(66 |
) |
(10 |
)% |
(41 |
) |
(20 |
)% | ||||||||||
Total revenues |
|
2,467 |
|
2,593 |
|
2,572 |
|
2,524 |
|
2,479 |
|
7,646 |
|
7,575 |
|
12 |
|
|
|
(71 |
) |
(1 |
)% |
(45 |
) |
(2 |
)% | ||||||||||
Banking and deposit interest expense |
|
12 |
|
11 |
|
11 |
|
10 |
|
11 |
|
36 |
|
32 |
|
(1 |
) |
(8 |
)% |
(4 |
) |
(11 |
)% |
1 |
|
10 |
% | ||||||||||
Total net revenues |
|
2,455 |
|
2,582 |
|
2,561 |
|
2,514 |
|
2,468 |
|
7,610 |
|
7,543 |
|
13 |
|
1 |
% |
(67 |
) |
(1 |
)% |
(46 |
) |
(2 |
)% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Distribution expenses |
|
641 |
|
625 |
|
666 |
|
663 |
|
667 |
|
1,934 |
|
1,996 |
|
26 |
|
4 |
% |
62 |
|
3 |
% |
4 |
|
1 |
% | ||||||||||
Interest credited to fixed accounts |
|
214 |
|
222 |
|
206 |
|
209 |
|
207 |
|
634 |
|
622 |
|
(7 |
) |
(3 |
)% |
(12 |
) |
(2 |
)% |
(2 |
) |
(1 |
)% | ||||||||||
Benefits, claims, losses and settlement expenses |
|
258 |
|
511 |
|
492 |
|
396 |
|
529 |
|
1,046 |
|
1,417 |
|
271 |
|
# |
|
371 |
|
35 |
% |
133 |
|
34 |
% | ||||||||||
Amortization of deferred acquisition costs |
|
202 |
|
31 |
|
31 |
|
99 |
|
67 |
|
366 |
|
197 |
|
(135 |
) |
(67 |
)% |
(169 |
) |
(46 |
)% |
(32 |
) |
(32 |
)% | ||||||||||
Interest and debt expense |
|
71 |
|
96 |
|
69 |
|
72 |
|
68 |
|
221 |
|
209 |
|
(3 |
) |
(4 |
)% |
(12 |
) |
(5 |
)% |
(4 |
) |
(6 |
)% | ||||||||||
General and administrative expense |
|
743 |
|
771 |
|
775 |
|
776 |
|
731 |
|
2,288 |
|
2,282 |
|
(12 |
) |
(2 |
)% |
(6 |
) |
|
|
(45 |
) |
(6 |
)% | ||||||||||
Total expenses |
|
2,129 |
|
2,256 |
|
2,239 |
|
2,215 |
|
2,269 |
|
6,489 |
|
6,723 |
|
140 |
|
7 |
% |
234 |
|
4 |
% |
54 |
|
2 |
% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Income from continuing operations before income tax provision |
|
326 |
|
326 |
|
322 |
|
299 |
|
199 |
|
1,121 |
|
820 |
|
(127 |
) |
(39 |
)% |
(301 |
) |
(27 |
)% |
(100 |
) |
(33 |
)% | ||||||||||
Income tax provision |
|
109 |
|
58 |
|
73 |
|
128 |
|
47 |
|
319 |
|
248 |
|
(62 |
) |
(57 |
)% |
(71 |
) |
(22 |
)% |
(81 |
) |
(63 |
)% | ||||||||||
Income from continuing operations |
|
217 |
|
268 |
|
249 |
|
171 |
|
152 |
|
802 |
|
572 |
|
(65 |
) |
(30 |
)% |
(230 |
) |
(29 |
)% |
(19 |
) |
(11 |
)% | ||||||||||
Income (loss) from discontinued operations, net of tax |
|
2 |
|
13 |
|
(1 |
) |
(1 |
) |
(1 |
) |
(73 |
) |
(3 |
) |
(3 |
) |
# |
|
70 |
|
96 |
% |
|
|
|
| ||||||||||
Net income |
|
219 |
|
281 |
|
248 |
|
170 |
|
151 |
|
729 |
|
569 |
|
(68 |
) |
(31 |
)% |
(160 |
) |
(22 |
)% |
(19 |
) |
(11 |
)% | ||||||||||
Less: Net income (loss) attributable to noncontrolling interests |
|
(105 |
) |
45 |
|
4 |
|
(53 |
) |
(22 |
) |
(151 |
) |
(71 |
) |
83 |
|
79 |
% |
80 |
|
53 |
% |
31 |
|
58 |
% | ||||||||||
Net income attributable to Ameriprise Financial |
|
$ |
324 |
|
$ |
236 |
|
$ |
244 |
|
$ |
223 |
|
$ |
173 |
|
$ |
880 |
|
$ |
640 |
|
$ |
(151 |
) |
(47 |
)% |
$ |
(240 |
) |
(27 |
)% |
$ |
(50 |
) |
(22 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Net Investment Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Investment income on fixed maturities (1) |
|
$ |
498 |
|
$ |
456 |
|
$ |
447 |
|
$ |
444 |
|
$ |
433 |
|
$ |
1,425 |
|
$ |
1,324 |
|
$ |
(65 |
) |
(13 |
)% |
$ |
(101 |
) |
(7 |
)% |
$ |
(11 |
) |
(2 |
)% |
Realized gains (losses) |
|
(2 |
) |
1 |
|
(2 |
) |
(5 |
) |
(68 |
) |
5 |
|
(75 |
) |
(66 |
) |
# |
|
(80 |
) |
# |
|
(63 |
) |
# |
| ||||||||||
Affordable housing |
|
(9 |
) |
(8 |
) |
(8 |
) |
(4 |
) |
(5 |
) |
(24 |
) |
(17 |
) |
4 |
|
44 |
% |
7 |
|
29 |
% |
(1 |
) |
(25 |
)% | ||||||||||
Other (including seed money) |
|
23 |
|
27 |
|
33 |
|
23 |
|
24 |
|
73 |
|
80 |
|
1 |
|
4 |
% |
7 |
|
10 |
% |
1 |
|
4 |
% | ||||||||||
Consolidated investment entities |
|
(65 |
) |
112 |
|
61 |
|
14 |
|
43 |
|
(21 |
) |
118 |
|
108 |
|
# |
|
139 |
|
# |
|
29 |
|
# |
| ||||||||||
Total net investment income |
|
$ |
445 |
|
$ |
588 |
|
$ |
531 |
|
$ |
472 |
|
$ |
427 |
|
$ |
1,458 |
|
$ |
1,430 |
|
$ |
(18 |
) |
(4 |
)% |
$ |
(28 |
) |
(2 |
)% |
$ |
(45 |
) |
(10 |
)% |
Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Income from continuing operations |
|
$ |
1.35 |
|
$ |
0.97 |
|
$ |
1.08 |
|
$ |
1.01 |
|
$ |
0.81 |
|
$ |
3.89 |
|
$ |
2.91 |
|
$ |
(0.54 |
) |
(40 |
)% |
$ |
(0.98 |
) |
(25 |
)% |
$ |
(0.20 |
) |
(20 |
)% |
Income (loss) from discontinued operations |
|
0.01 |
|
0.06 |
|
(0.01 |
) |
|
|
(0.01 |
) |
(0.30 |
) |
(0.02 |
) |
(0.02 |
) |
# |
|
0.28 |
|
93 |
% |
(0.01 |
) |
|
| ||||||||||
Net income |
|
$ |
1.36 |
|
$ |
1.03 |
|
$ |
1.07 |
|
$ |
1.01 |
|
$ |
0.80 |
|
$ |
3.59 |
|
$ |
2.89 |
|
$ |
(0.56 |
) |
(41 |
)% |
$ |
(0.70 |
) |
(19 |
)% |
$ |
(0.21 |
) |
(21 |
)% |
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Income from continuing operations |
|
$ |
1.33 |
|
$ |
0.95 |
|
$ |
1.06 |
|
$ |
0.99 |
|
$ |
0.79 |
|
$ |
3.81 |
|
$ |
2.85 |
|
$ |
(0.54 |
) |
(41 |
)% |
$ |
(0.96 |
) |
(25 |
)% |
$ |
(0.20 |
) |
(20 |
)% |
Income (loss) from discontinued operations |
|
0.01 |
|
0.06 |
|
(0.01 |
) |
|
|
|
|
(0.29 |
) |
(0.01 |
) |
(0.01 |
) |
# |
|
0.28 |
|
97 |
% |
|
|
|
| ||||||||||
Net income |
|
$ |
1.34 |
|
$ |
1.01 |
|
$ |
1.05 |
|
$ |
0.99 |
|
$ |
0.79 |
|
$ |
3.52 |
|
$ |
2.84 |
|
$ |
(0.55 |
) |
(41 |
)% |
$ |
(0.68 |
) |
(19 |
)% |
$ |
(0.20 |
) |
(20 |
)% |
Earnings per diluted share growth (from continuing operations) |
|
47.8 |
% |
(15.2 |
)% |
(12.4 |
)% |
(22.0 |
)% |
(40.6 |
)% |
39.1 |
% |
(25.2 |
)% |
(88.4 |
)% |
|
|
(64.2 |
)% |
|
|
(18.6 |
)% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Basic weighted average common shares outstanding |
|
238.0 |
|
230.6 |
|
227.3 |
|
221.7 |
|
215.0 |
|
245.0 |
|
221.3 |
|
(23.0 |
) |
(10 |
)% |
(23.7 |
) |
(10 |
)% |
(6.7 |
) |
(3 |
)% | ||||||||||
Effect of potentially dilutive nonqualified stock options and other share-based awards |
|
4.0 |
|
3.9 |
|
4.4 |
|
3.9 |
|
4.1 |
|
5.2 |
|
4.1 |
|
0.1 |
|
2 |
% |
(1.1 |
) |
(21 |
)% |
0.2 |
|
5 |
% | ||||||||||
Diluted weighted average common shares outstanding |
|
242.0 |
|
234.5 |
|
231.7 |
|
225.6 |
|
219.1 |
|
250.2 |
|
225.4 |
|
(22.9 |
) |
(9 |
)% |
(24.8 |
) |
(10 |
)% |
(6.5 |
) |
(3 |
)% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Net revenue growth |
|
5.2 |
% |
0.9 |
% |
1.1 |
% |
(4.2 |
)% |
0.5 |
% |
9.4 |
% |
(0.9 |
)% |
(4.7 |
)% |
|
|
(10.3 |
)% |
|
|
4.7 |
% |
|
| ||||||||||
Pretax income margin (2) |
|
13.3 |
% |
12.6 |
% |
12.6 |
% |
11.9 |
% |
8.1 |
% |
14.7 |
% |
10.9 |
% |
(5.2 |
)% |
|
|
(3.8 |
)% |
|
|
(3.8 |
)% |
|
| ||||||||||
Effective tax rate (6) |
|
33.2 |
% |
17.9 |
% |
22.6 |
% |
42.8 |
% |
23.8 |
% |
28.4 |
% |
30.3 |
% |
(9.4 |
)% |
|
|
1.9 |
% |
|
|
(19.0 |
)% |
|
| ||||||||||
Effective tax rate excluding noncontrolling interests (3)(6) |
|
25.2 |
% |
20.7 |
% |
22.9 |
% |
36.4 |
% |
21.4 |
% |
25.1 |
% |
27.9 |
% |
(3.8 |
)% |
|
|
2.8 |
% |
|
|
(15.0 |
)% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Ameriprise Financial shareholders equity / outstanding shares (4) |
|
$ |
38.80 |
|
$ |
39.49 |
|
$ |
40.58 |
|
$ |
41.33 |
|
$ |
43.05 |
|
$ |
38.80 |
|
$ |
43.05 |
|
$ |
4.25 |
|
11 |
% |
$ |
4.25 |
|
11 |
% |
$ |
1.72 |
|
4 |
% |
Ameriprise Financial shareholders equity from continuing operations excluding AOCI / outstanding shares (3)(5) |
|
$ |
35.13 |
|
$ |
36.19 |
|
$ |
36.79 |
|
$ |
37.00 |
|
$ |
37.09 |
|
$ |
35.13 |
|
$ |
37.09 |
|
$ |
1.96 |
|
6 |
% |
$ |
1.96 |
|
6 |
% |
$ |
0.09 |
|
|
|
(1) Q3 2011 includes a $43M adjustment for additional bond discount amortization investment income related to prior periods resulting from revisions to the accounting classification of certain structured securities.
(2) Calculated as income from continuing operations before income tax provision divided by total net revenues.
(3) See non-GAAP financial information on pg 34. Non-GAAP financial measure reconciliations can be found on pages 44 and 45.
(4) Calculated as Ameriprise Financial shareholders equity divided by common shares outstanding plus common stock equivalents outstanding at period end.
(5) Calculated as Ameriprise Financial shareholders equity from continuing operations excluding AOCI divided by common shares outstanding plus common stock equivalents outstanding at period end.
(6) Q2 2012 includes a tax-related item related to incomplete data received from a third party service provider for securities lending activities in prior periods.
# Variance of greater than 100%.
Ameriprise Financial, Inc.
Consolidated Operating Results and Highlights
Third Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Year Comparisons |
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
Qtr Chg - 3Q |
|
YTD Chg - 3Q |
|
Seq Qtr Chg - 3Q |
| ||||||||||||||||||
(in millions except per share amounts, unaudited) |
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
2011 |
|
2012 |
|
Diff. |
|
% |
|
Diff. |
|
% |
|
Diff. |
|
% |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total net revenues |
|
$ |
2,455 |
|
$ |
2,582 |
|
$ |
2,561 |
|
$ |
2,514 |
|
$ |
2,468 |
|
$ |
7,610 |
|
$ |
7,543 |
|
$ |
13 |
|
1 |
% |
$ |
(67 |
) |
(1 |
)% |
$ |
(46 |
) |
(2 |
)% |
Less revenues attributable to the CIEs |
|
(52 |
) |
126 |
|
52 |
|
1 |
|
27 |
|
10 |
|
80 |
|
79 |
|
# |
|
70 |
|
# |
|
26 |
|
# |
| ||||||||||
Less realized gains (losses) |
|
(2 |
) |
1 |
|
(2 |
) |
(5 |
) |
(68 |
) |
5 |
|
(75 |
) |
(66 |
) |
# |
|
(80 |
) |
# |
|
(63 |
) |
# |
| ||||||||||
Less integration/restructuring charges |
|
|
|
|
|
|
|
|
|
(8 |
) |
|
|
(8 |
) |
(8 |
) |
|
|
(8 |
) |
|
|
(8 |
) |
|
| ||||||||||
Operating total net revenues (1) |
|
$ |
2,509 |
|
$ |
2,455 |
|
$ |
2,511 |
|
$ |
2,518 |
|
$ |
2,517 |
|
$ |
7,595 |
|
$ |
7,546 |
|
$ |
8 |
|
|
|
$ |
(49 |
) |
(1 |
)% |
$ |
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Net income attributable to Ameriprise Financial |
|
$ |
324 |
|
$ |
236 |
|
$ |
244 |
|
$ |
223 |
|
$ |
173 |
|
$ |
880 |
|
$ |
640 |
|
$ |
(151 |
) |
(47 |
)% |
$ |
(240 |
) |
(27 |
)% |
$ |
(50 |
) |
(22 |
)% |
Less income (loss) from discontinued operations, net of tax |
|
2 |
|
13 |
|
(1 |
) |
(1 |
) |
(1 |
) |
(73 |
) |
(3 |
) |
(3 |
) |
# |
|
70 |
|
96 |
% |
|
|
|
| ||||||||||
Net income from continuing operations attributable to Ameriprise Financial |
|
322 |
|
223 |
|
245 |
|
224 |
|
174 |
|
953 |
|
643 |
|
(148 |
) |
(46 |
)% |
(310 |
) |
(33 |
)% |
(50 |
) |
(22 |
)% | ||||||||||
Integration/restructuring charges, net of tax (2) |
|
15 |
|
14 |
|
15 |
|
17 |
|
11 |
|
48 |
|
43 |
|
(4 |
) |
(27 |
)% |
(5 |
) |
(10 |
)% |
(6 |
) |
(35 |
)% | ||||||||||
Market impact on variable annuity guaranteed living benefits, net of tax (2) |
|
(50 |
) |
72 |
|
74 |
|
9 |
|
60 |
|
(32 |
) |
143 |
|
110 |
|
# |
|
175 |
|
# |
|
51 |
|
# |
| ||||||||||
Less realized gains (losses), net of tax (2) |
|
(2 |
) |
1 |
|
(1 |
) |
(4 |
) |
(44 |
) |
3 |
|
(49 |
) |
(42 |
) |
# |
|
(52 |
) |
# |
|
(40 |
) |
# |
| ||||||||||
Operating earnings (1) |
|
$ |
289 |
|
$ |
308 |
|
$ |
335 |
|
$ |
254 |
|
$ |
289 |
|
$ |
966 |
|
$ |
878 |
|
$ |
|
|
|
|
$ |
(88 |
) |
(9 |
)% |
$ |
35 |
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Pretax Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Income from continuing operations before income tax provision |
|
$ |
326 |
|
$ |
326 |
|
$ |
322 |
|
$ |
299 |
|
$ |
199 |
|
$ |
1,121 |
|
$ |
820 |
|
$ |
(127 |
) |
(39 |
)% |
$ |
(301 |
) |
(27 |
)% |
$ |
(100 |
) |
(33 |
)% |
Less net income (loss) attributable to noncontrolling interests |
|
(105 |
) |
45 |
|
4 |
|
(53 |
) |
(22 |
) |
(151 |
) |
(71 |
) |
83 |
|
79 |
% |
80 |
|
53 |
% |
31 |
|
58 |
% | ||||||||||
Pretax earnings excluding CIEs |
|
431 |
|
281 |
|
318 |
|
352 |
|
221 |
|
1,272 |
|
891 |
|
(210 |
) |
(49 |
)% |
(381 |
) |
(30 |
)% |
(131 |
) |
(37 |
)% | ||||||||||
Integration/restructuring charges |
|
24 |
|
21 |
|
23 |
|
26 |
|
17 |
|
74 |
|
66 |
|
(7 |
) |
(29 |
)% |
(8 |
) |
(11 |
)% |
(9 |
) |
(35 |
)% | ||||||||||
Market impact on variable annuity guaranteed living benefits |
|
(77 |
) |
111 |
|
113 |
|
16 |
|
91 |
|
(49 |
) |
220 |
|
168 |
|
# |
|
269 |
|
# |
|
75 |
|
# |
| ||||||||||
Less realized gains (losses) |
|
(2 |
) |
1 |
|
(2 |
) |
(5 |
) |
(68 |
) |
5 |
|
(75 |
) |
(66 |
) |
# |
|
(80 |
) |
# |
|
(63 |
) |
# |
| ||||||||||
Pretax operating earnings (1) |
|
$ |
380 |
|
$ |
412 |
|
$ |
456 |
|
$ |
399 |
|
$ |
397 |
|
$ |
1,292 |
|
$ |
1,252 |
|
$ |
17 |
|
4 |
% |
$ |
(40 |
) |
(3 |
)% |
$ |
(2 |
) |
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Pretax Operating Margin (1)(3) |
|
15.1 |
% |
16.8 |
% |
18.2 |
% |
15.8 |
% |
15.8 |
% |
17.0 |
% |
16.6 |
% |
0.7 |
% |
|
|
(0.4 |
)% |
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Operating Effective Tax Rate (1)(4)(5) |
|
23.9 |
% |
25.2 |
% |
26.5 |
% |
36.3 |
% |
27.2 |
% |
25.2 |
% |
29.9 |
% |
3.3 |
% |
|
|
4.7 |
% |
|
|
(9.1 |
)% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Weighted Average Common Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Basic |
|
238.0 |
|
230.6 |
|
227.3 |
|
221.7 |
|
215.0 |
|
245.0 |
|
221.3 |
|
(23.0 |
) |
(10 |
)% |
(23.7 |
) |
(10 |
)% |
(6.7 |
) |
(3 |
)% | ||||||||||
Diluted |
|
242.0 |
|
234.5 |
|
231.7 |
|
225.6 |
|
219.1 |
|
250.2 |
|
225.4 |
|
(22.9 |
) |
(9 |
)% |
(24.8 |
) |
(10 |
)% |
(6.5 |
) |
(3 |
)% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Operating Earnings Per Share (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Basic operating earnings per share |
|
$ |
1.21 |
|
$ |
1.34 |
|
$ |
1.47 |
|
$ |
1.15 |
|
$ |
1.34 |
|
$ |
3.94 |
|
$ |
3.97 |
|
$ |
0.13 |
|
11 |
% |
$ |
0.03 |
|
1 |
% |
$ |
0.19 |
|
17 |
% |
Operating earnings per diluted share |
|
$ |
1.19 |
|
$ |
1.31 |
|
$ |
1.45 |
|
$ |
1.13 |
|
$ |
1.32 |
|
$ |
3.86 |
|
$ |
3.90 |
|
$ |
0.13 |
|
11 |
% |
$ |
0.04 |
|
1 |
% |
$ |
0.19 |
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Return on Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Return on equity excluding AOCI (1)(4) |
|
14.6 |
% |
13.9 |
% |
13.3 |
% |
12.3 |
% |
10.7 |
% |
14.6 |
% |
10.7 |
% |
(3.9 |
)% |
|
|
(3.9 |
)% |
|
|
(1.6 |
)% |
|
| ||||||||||
Operating return on equity excluding AOCI (1)(4) |
|
16.2 |
% |
16.0 |
% |
16.0 |
% |
15.2 |
% |
15.4 |
% |
16.2 |
% |
15.4 |
% |
(0.8 |
)% |
|
|
(0.8 |
)% |
|
|
0.2 |
% |
|
|
(1) See non-GAAP financial information on pg 34.
(2) Calculated using the statutory tax rate of 35%.
(3) Defined as pretax operating earnings as a percentage of operating total net revenues.
(4) Non-GAAP financial measure reconciliations can be found on pg 44.
(5) Q2 2012 includes a tax-related item related to incomplete data received from a third party service provider for securities lending activities in prior periods.
# Variance of greater than 100%.
Ameriprise Financial, Inc.
Consolidated Operating Results and Highlights
Third Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Year Comparisons |
|
|
|
|
| |||||||||||||||||
(in millions except per share amounts, |
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
Qtr Chg - 3Q |
|
YTD Chg - 3Q |
|
Seq Qtr Chg - 3Q |
| |||||||||||||||||||
headcount and where noted, unaudited) |
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
2011 |
|
2012 |
|
Diff. |
|
% |
|
Diff. |
|
% |
|
Diff. |
|
% |
| |||||||||||
Book Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Ameriprise Financial shareholders equity from continuing operations excluding CIEs / outstanding shares (1)(2) |
|
$ |
36.86 |
|
$ |
37.72 |
|
$ |
38.74 |
|
$ |
39.63 |
|
$ |
41.34 |
|
$ |
36.86 |
|
$ |
41.34 |
|
$ |
4.48 |
|
12 |
% |
$ |
4.48 |
|
12 |
% |
$ |
1.71 |
|
4 |
% | |
Ameriprise Financial shareholders equity from continuing operations excluding CIEs and AOCI / outstanding shares (1)(3) |
|
$ |
33.49 |
|
$ |
34.31 |
|
$ |
34.84 |
|
$ |
35.20 |
|
$ |
35.26 |
|
$ |
33.49 |
|
$ |
35.26 |
|
$ |
1.77 |
|
5 |
% |
$ |
1.77 |
|
5 |
% |
$ |
0.06 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Operating Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Operating total net revenue growth: Target 6 - 8% |
|
8.4 |
% |
(2.3 |
)% |
0.7 |
% |
(2.9 |
)% |
0.3 |
% |
15.0 |
% |
(0.6 |
)% |
(8.1 |
)% |
|
|
(15.6 |
)% |
|
|
3.2 |
% |
|
| |||||||||||
Operating earnings per diluted share growth: Target 12 - 15% |
|
29.3 |
% |
3.1 |
% |
9.0 |
% |
(15.0 |
)% |
10.9 |
% |
36.4 |
% |
1.0 |
% |
(18.4 |
)% |
|
|
(35.4 |
)% |
|
|
26.0 |
% |
|
| |||||||||||
Operating return on equity excluding AOCI: Target 15 - 18% (1) |
|
16.2 |
% |
16.0 |
% |
16.0 |
% |
15.2 |
% |
15.4 |
% |
16.2 |
% |
15.4 |
% |
(0.8 |
)% |
|
|
(0.8 |
)% |
|
|
0.2 |
% |
|
| |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Debt to Capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital |
|
21.0 |
% |
21.0 |
% |
20.7 |
% |
21.1 |
% |
20.9 |
% |
21.0 |
% |
20.9 |
% |
(0.1 |
)% |
|
|
(0.1 |
)% |
|
|
(0.2 |
)% |
|
| |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Goodwill and Intangible Assets |
|
$ |
2,155 |
|
$ |
2,143 |
|
$ |
2,144 |
|
$ |
2,125 |
|
$ |
2,125 |
|
$ |
2,155 |
|
$ |
2,125 |
|
$ |
(30 |
) |
(1 |
)% |
$ |
(30 |
) |
(1 |
)% |
$ |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Assets Under Management and Administration (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Advice & Wealth Management AUM |
|
$ |
98,185 |
|
$ |
104,683 |
|
$ |
114,432 |
|
$ |
114,690 |
|
$ |
121,675 |
|
$ |
98,185 |
|
$ |
121,675 |
|
$ |
23,490 |
|
24 |
% |
$ |
23,490 |
|
24 |
% |
$ |
6,985 |
|
6 |
% | |
Asset Management AUM |
|
416,992 |
|
435,503 |
|
463,041 |
|
445,804 |
|
460,856 |
|
416,992 |
|
460,856 |
|
43,864 |
|
11 |
% |
43,864 |
|
11 |
% |
15,052 |
|
3 |
% | |||||||||||
Corporate AUM |
|
23 |
|
23 |
|
23 |
|
25 |
|
26 |
|
23 |
|
26 |
|
3 |
|
13 |
% |
3 |
|
13 |
% |
1 |
|
4 |
% | |||||||||||
Eliminations |
|
(13,876 |
) |
(12,640 |
) |
(13,973 |
) |
(16,945 |
) |
(18,080 |
) |
(13,876 |
) |
(18,080 |
) |
(4,204 |
) |
(30 |
)% |
(4,204 |
) |
(30 |
)% |
(1,135 |
) |
(7 |
)% | |||||||||||
Total Assets Under Management |
|
501,324 |
|
527,569 |
|
563,523 |
|
543,574 |
|
564,477 |
|
501,324 |
|
564,477 |
|
63,153 |
|
13 |
% |
63,153 |
|
13 |
% |
20,903 |
|
4 |
% | |||||||||||
Total Assets Under Administration |
|
98,612 |
|
103,753 |
|
111,361 |
|
111,177 |
|
113,986 |
|
98,612 |
|
113,986 |
|
15,374 |
|
16 |
% |
15,374 |
|
16 |
% |
2,809 |
|
3 |
% | |||||||||||
Total AUM and AUA |
|
$ |
599,936 |
|
$ |
631,322 |
|
$ |
674,884 |
|
$ |
654,751 |
|
$ |
678,463 |
|
$ |
599,936 |
|
$ |
678,463 |
|
$ |
78,527 |
|
13 |
% |
$ |
78,527 |
|
13 |
% |
$ |
23,712 |
|
4 |
% | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Business Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Ameriprise client assets |
|
$ |
293,313 |
|
$ |
309,864 |
|
$ |
334,086 |
|
$ |
330,847 |
|
$ |
344,857 |
|
$ |
293,313 |
|
$ |
344,857 |
|
$ |
51,544 |
|
18 |
% |
$ |
51,544 |
|
18 |
% |
$ |
14,010 |
|
4 |
% | |
Total branded financial advisors |
|
9,714 |
|
9,730 |
|
9,744 |
|
9,803 |
|
9,815 |
|
9,714 |
|
9,815 |
|
101 |
|
1 |
% |
101 |
|
1 |
% |
12 |
|
|
| |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Flows and Net Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Branded advisor wrap |
|
$ |
820 |
|
$ |
1,350 |
|
$ |
2,887 |
|
$ |
2,634 |
|
$ |
2,062 |
|
$ |
5,915 |
|
$ |
7,583 |
|
$ |
1,242 |
|
# |
|
$ |
1,668 |
|
$ |
28 |
% |
(572 |
) |
(22 |
)% | |
Asset Management |
|
(5,225 |
) |
3,790 |
|
(4,602 |
) |
(6,648 |
) |
(3,475 |
) |
(10,692 |
) |
(14,725 |
) |
1,750 |
|
33 |
% |
(4,033 |
) |
(38 |
)% |
3,173 |
|
48 |
% | |||||||||||
Annuities |
|
19 |
|
69 |
|
(101 |
) |
(324 |
) |
(396 |
) |
(174 |
) |
(821 |
) |
(415 |
) |
# |
|
(647 |
) |
# |
|
(72 |
) |
(22 |
)% | |||||||||||
Variable universal life / Universal life |
|
(49 |
) |
(38 |
) |
(52 |
) |
(50 |
) |
(49 |
) |
(159 |
) |
(151 |
) |
|
|
|
|
8 |
|
5 |
% |
1 |
|
2 |
% | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
S&P 500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Daily average |
|
1,227 |
|
1,225 |
|
1,346 |
|
1,350 |
|
1,402 |
|
1,282 |
|
1,366 |
|
175 |
|
14 |
% |
84 |
|
7 |
% |
52 |
|
4 |
% | |||||||||||
Period end |
|
1,131 |
|
1,258 |
|
1,408 |
|
1,362 |
|
1,441 |
|
1,131 |
|
1,441 |
|
310 |
|
27 |
% |
310 |
|
27 |
% |
79 |
|
6 |
% | |||||||||||
(1) See non-GAAP financial information on pg 34. Non-GAAP financial measure reconciliations can be found on pages 44 and 45.
(2) Calculated as Ameriprise Financial shareholders equity from continuing operations excluding CIEs divided by common shares outstanding plus common stock equivalents outstanding at period end.
(3) Calculated as Ameriprise Financial shareholders equity from continuing operations excluding CIEs and AOCI divided by common shares outstanding plus common stock equivalents outstanding at period end.
(4) Excludes discontinued operations.
# Variance of greater than 100%.
Ameriprise Financial, Inc.
Common Share and Capital Summary
Third Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Year Comparisons |
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
Qtr Chg - 3Q |
|
YTD Chg - 3Q |
|
Seq Qtr Chg - 3Q |
| ||||||||||||||||||
(in millions unless otherwise noted, unaudited) |
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
2011 |
|
2012 |
|
Diff. |
|
% |
|
Diff. |
|
% |
|
Diff. |
|
% |
| ||||||||||
Common shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Beginning balance |
|
237.1 |
|
227.2 |
|
221.9 |
|
219.6 |
|
212.7 |
|
246.7 |
|
221.9 |
|
(24.4 |
) |
(10 |
)% |
(24.8 |
) |
(10 |
)% |
(6.9 |
) |
(3 |
)% | ||||||||||
Repurchases |
|
(9.9 |
) |
(5.5 |
) |
(5.4 |
) |
(7.0 |
) |
(6.3 |
) |
(22.4 |
) |
(18.7 |
) |
3.6 |
|
36 |
% |
3.7 |
|
17 |
% |
0.7 |
|
10 |
% | ||||||||||
Issuances |
|
0.2 |
|
0.5 |
|
3.4 |
|
0.1 |
|
1.1 |
|
3.5 |
|
4.6 |
|
0.9 |
|
# |
|
1.1 |
|
31 |
% |
1.0 |
|
# |
| ||||||||||
Other |
|
(0.2 |
) |
(0.3 |
) |
(0.3 |
) |
|
|
(0.1 |
) |
(0.6 |
) |
(0.4 |
) |
0.1 |
|
50 |
% |
0.2 |
|
33 |
% |
(0.1 |
) |
|
| ||||||||||
Total common shares outstanding |
|
227.2 |
|
221.9 |
|
219.6 |
|
212.7 |
|
207.4 |
|
227.2 |
|
207.4 |
|
(19.8 |
) |
(9 |
)% |
(19.8 |
) |
(9 |
)% |
(5.3 |
) |
(2 |
)% | ||||||||||
Nonforfeitable restricted stock units |
|
5.3 |
|
5.7 |
|
5.0 |
|
5.2 |
|
5.3 |
|
5.3 |
|
5.3 |
|
|
|
|
|
|
|
|
|
0.1 |
|
2 |
% | ||||||||||
Total basic common shares outstanding |
|
232.5 |
|
227.6 |
|
224.6 |
|
217.9 |
|
212.7 |
|
232.5 |
|
212.7 |
|
(19.8 |
) |
(9 |
)% |
(19.8 |
) |
(9 |
)% |
(5.2 |
) |
(2 |
)% | ||||||||||
Total potentially dilutive shares |
|
3.3 |
|
4.2 |
|
4.5 |
|
3.7 |
|
4.1 |
|
3.3 |
|
4.1 |
|
0.8 |
|
24 |
% |
0.8 |
|
24 |
% |
0.4 |
|
11 |
% | ||||||||||
Total diluted shares |
|
235.8 |
|
231.8 |
|
229.1 |
|
221.6 |
|
216.8 |
|
235.8 |
|
216.8 |
|
(19.0 |
) |
(8 |
)% |
(19.0 |
) |
(8 |
)% |
(4.8 |
) |
(2 |
)% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Capital Returned to Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Dividends paid |
|
$ |
55 |
|
$ |
54 |
|
$ |
64 |
|
$ |
78 |
|
$ |
76 |
|
$ |
158 |
|
$ |
218 |
|
$ |
21 |
|
38 |
% |
$ |
60 |
|
38 |
% |
$ |
(2 |
) |
(3 |
)% |
Common stock share repurchases |
|
$ |
447 |
|
$ |
248 |
|
$ |
300 |
|
$ |
350 |
|
$ |
340 |
|
$ |
1,208 |
|
$ |
990 |
|
$ |
(107 |
) |
(24 |
)% |
$ |
(218 |
) |
(18 |
)% |
$ |
(10 |
) |
(3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Allocated Equity (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Advice & Wealth Management |
|
$ |
782 |
|
$ |
790 |
|
$ |
799 |
|
$ |
814 |
|
$ |
772 |
|
$ |
782 |
|
$ |
772 |
|
$ |
(10 |
) |
(1 |
)% |
$ |
(10 |
) |
(1 |
)% |
$ |
(42 |
) |
(5 |
)% |
Asset Management |
|
1,948 |
|
1,922 |
|
1,913 |
|
1,933 |
|
1,914 |
|
1,948 |
|
1,914 |
|
(34 |
) |
(2 |
)% |
(34 |
) |
(2 |
)% |
(19 |
) |
(1 |
)% | ||||||||||
Annuities |
|
2,298 |
|
1,931 |
|
1,651 |
|
1,537 |
|
1,507 |
|
2,298 |
|
1,507 |
|
(791 |
) |
(34 |
)% |
(791 |
) |
(34 |
)% |
(30 |
) |
(2 |
)% | ||||||||||
Protection |
|
1,698 |
|
1,710 |
|
1,716 |
|
1,703 |
|
1,676 |
|
1,698 |
|
1,676 |
|
(22 |
) |
(1 |
)% |
(22 |
) |
(1 |
)% |
(27 |
) |
(2 |
)% | ||||||||||
Corporate & Other |
|
1,061 |
|
1,456 |
|
1,745 |
|
1,682 |
|
1,631 |
|
1,061 |
|
1,631 |
|
570 |
|
54 |
% |
570 |
|
54 |
% |
(51 |
) |
(3 |
)% | ||||||||||
Total allocated equity |
|
$ |
7,787 |
|
$ |
7,809 |
|
$ |
7,824 |
|
$ |
7,669 |
|
$ |
7,500 |
|
$ |
7,787 |
|
$ |
7,500 |
|
$ |
(287 |
) |
(4 |
)% |
$ |
(287 |
) |
(4 |
)% |
$ |
(169 |
) |
(2 |
)% |
(1) Allocated equity equals Ameriprise Financial shareholders equity from continuing operations excluding consolidated investment entities less AOCI. Allocated equity is not adjusted for non-operating items except for CIEs and the net of assets and liabilities held for sale.
# Variance of greater than 100%.
Ameriprise Financial, Inc.
Segment Summary
Third Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Year Comparisons |
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
Qtr Chg - 3Q |
|
YTD Chg - 3Q |
|
Seq Qtr Chg - 3Q |
| ||||||||||||||||||
(in millions unless otherwise noted, unaudited) |
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
2011 |
|
2012 |
|
Diff. |
|
% |
|
Diff. |
|
% |
|
Diff. |
|
% |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Segment Summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Advice & Wealth Management |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Operating total net revenues |
|
$ |
938 |
|
$ |
905 |
|
$ |
954 |
|
$ |
953 |
|
$ |
961 |
|
$ |
2,808 |
|
$ |
2,868 |
|
$ |
23 |
|
2 |
% |
$ |
60 |
|
2 |
% |
$ |
8 |
|
1 |
% |
Operating expenses |
|
822 |
|
822 |
|
860 |
|
842 |
|
842 |
|
2,485 |
|
2,544 |
|
20 |
|
2 |
% |
59 |
|
2 |
% |
|
|
|
| ||||||||||
Pretax operating earnings |
|
$ |
116 |
|
$ |
83 |
|
$ |
94 |
|
$ |
111 |
|
$ |
119 |
|
$ |
323 |
|
$ |
324 |
|
$ |
3 |
|
3 |
% |
$ |
1 |
|
|
|
$ |
8 |
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Allocated equity |
|
$ |
782 |
|
$ |
790 |
|
$ |
799 |
|
$ |
814 |
|
$ |
772 |
|
$ |
782 |
|
$ |
772 |
|
$ |
(10 |
) |
(1 |
)% |
$ |
(10 |
) |
(1 |
)% |
$ |
(42 |
) |
(5 |
)% |
Operating return on allocated equity (2) |
|
42.7 |
% |
40.1 |
% |
38.5 |
% |
36.7 |
% |
36.5 |
% |
42.7 |
% |
36.5 |
% |
(6.2 |
)% |
|
|
(6.2 |
)% |
|
|
(0.2 |
)% |
|
| ||||||||||
Pretax operating margin |
|
12.4 |
% |
9.2 |
% |
9.9 |
% |
11.6 |
% |
12.4 |
% |
11.5 |
% |
11.3 |
% |
|
|
|
|
(0.2 |
)% |
|
|
0.8 |
% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Asset Management |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Operating total net revenues |
|
$ |
705 |
|
$ |
702 |
|
$ |
711 |
|
$ |
707 |
|
$ |
733 |
|
$ |
2,195 |
|
$ |
2,151 |
|
$ |
28 |
|
4 |
% |
$ |
(44 |
) |
(2 |
)% |
$ |
26 |
|
4 |
% |
Operating expenses |
|
586 |
|
575 |
|
580 |
|
577 |
|
578 |
|
1,794 |
|
1,735 |
|
(8 |
) |
(1 |
)% |
(59 |
) |
(3 |
)% |
1 |
|
|
| ||||||||||
Pretax operating earnings |
|
$ |
119 |
|
$ |
127 |
|
$ |
131 |
|
$ |
130 |
|
$ |
155 |
|
$ |
401 |
|
$ |
416 |
|
$ |
36 |
|
30 |
% |
$ |
15 |
|
4 |
% |
$ |
25 |
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Allocated equity |
|
$ |
1,948 |
|
$ |
1,922 |
|
$ |
1,913 |
|
$ |
1,933 |
|
$ |
1,914 |
|
$ |
1,948 |
|
$ |
1,914 |
|
$ |
(34 |
) |
(2 |
)% |
$ |
(34 |
) |
(2 |
)% |
$ |
(19 |
) |
(1 |
)% |
Operating return on allocated equity (2) |
|
22.0 |
% |
20.4 |
% |
20.1 |
% |
18.9 |
% |
20.1 |
% |
22.0 |
% |
20.1 |
% |
(1.9 |
)% |
|
|
(1.9 |
)% |
|
|
1.2 |
% |
|
| ||||||||||
Pretax operating margin |
|
16.9 |
% |
18.1 |
% |
18.4 |
% |
18.4 |
% |
21.1 |
% |
18.3 |
% |
19.3 |
% |
4.2 |
% |
|
|
1.0 |
% |
|
|
2.7 |
% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Operating total net revenues |
|
$ |
705 |
|
$ |
702 |
|
$ |
711 |
|
$ |
707 |
|
$ |
733 |
|
$ |
2,195 |
|
$ |
2,151 |
|
$ |
28 |
|
4 |
% |
$ |
(44 |
) |
(2 |
)% |
$ |
26 |
|
4 |
% |
Distribution pass thru revenues |
|
(207 |
) |
(201 |
) |
(207 |
) |
(203 |
) |
(203 |
) |
(632 |
) |
(613 |
) |
4 |
|
2 |
% |
19 |
|
3 |
% |
|
|
|
| ||||||||||
Subadvisory and other pass thru revenues |
|
(91 |
) |
(100 |
) |
(96 |
) |
(95 |
) |
(105 |
) |
(285 |
) |
(296 |
) |
(14 |
) |
(15 |
)% |
(11 |
) |
(4 |
)% |
(10 |
) |
(11 |
)% | ||||||||||
Adjusted operating revenues (1) |
|
$ |
407 |
|
$ |
401 |
|
$ |
408 |
|
$ |
409 |
|
$ |
425 |
|
$ |
1,278 |
|
$ |
1,242 |
|
$ |
18 |
|
4 |
% |
$ |
(36 |
) |
(3 |
)% |
$ |
16 |
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Pretax operating earnings |
|
$ |
119 |
|
$ |
127 |
|
$ |
131 |
|
$ |
130 |
|
$ |
155 |
|
$ |
401 |
|
$ |
416 |
|
$ |
36 |
|
30 |
% |
$ |
15 |
|
4 |
% |
$ |
25 |
|
19 |
% |
Operating net investment income |
|
4 |
|
(11 |
) |
(5 |
) |
(2 |
) |
(5 |
) |
|
|
(12 |
) |
(9 |
) |
|
# |
(12 |
) |
|
|
(3 |
) |
|
# | ||||||||||
Amortization of intangibles |
|
10 |
|
10 |
|
10 |
|
10 |
|
10 |
|
30 |
|
30 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Adjusted operating earnings (1) |
|
$ |
133 |
|
$ |
126 |
|
$ |
136 |
|
$ |
138 |
|
$ |
160 |
|
$ |
431 |
|
$ |
434 |
|
$ |
27 |
|
20 |
% |
$ |
3 |
|
1 |
% |
$ |
22 |
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Adjusted net pretax operating margin (1)(3) |
|
32.7 |
% |
31.4 |
% |
33.3 |
% |
33.7 |
% |
37.6 |
% |
33.7 |
% |
34.9 |
% |
4.9 |
% |
|
|
1.2 |
% |
|
|
3.9 |
% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Annuities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Operating total net revenues |
|
$ |
688 |
|
$ |
634 |
|
$ |
628 |
|
$ |
628 |
|
$ |
632 |
|
$ |
1,996 |
|
$ |
1,888 |
|
$ |
(56 |
) |
(8 |
)% |
$ |
(108 |
) |
(5 |
)% |
$ |
4 |
|
1 |
% |
Operating expenses |
|
553 |
|
470 |
|
439 |
|
512 |
|
541 |
|
1,535 |
|
1,492 |
|
(12 |
) |
(2 |
)% |
(43 |
) |
(3 |
)% |
29 |
|
6 |
% | ||||||||||
Pretax operating earnings |
|
$ |
135 |
|
$ |
164 |
|
$ |
189 |
|
$ |
116 |
|
$ |
91 |
|
$ |
461 |
|
$ |
396 |
|
$ |
(44 |
) |
(33 |
)% |
$ |
(65 |
) |
(14 |
)% |
$ |
(25 |
) |
(22 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Allocated equity |
|
$ |
2,298 |
|
$ |
1,931 |
|
$ |
1,651 |
|
$ |
1,537 |
|
$ |
1,507 |
|
$ |
2,298 |
|
$ |
1,507 |
|
$ |
(791 |
) |
(34 |
)% |
$ |
(791 |
) |
(34 |
)% |
$ |
(30 |
) |
(2 |
)% |
Operating return on allocated equity (2) |
|
23.4 |
% |
23.3 |
% |
24.1 |
% |
23.1 |
% |
22.5 |
% |
23.4 |
% |
22.5 |
% |
(0.9 |
)% |
|
|
(0.9 |
)% |
|
|
(0.6 |
)% |
|
| ||||||||||
Pretax operating margin |
|
19.6 |
% |
25.9 |
% |
30.1 |
% |
18.5 |
% |
14.4 |
% |
23.1 |
% |
21.0 |
% |
(5.2 |
)% |
|
|
(2.1 |
)% |
|
|
(4.1 |
)% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Protection |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Operating total net revenues |
|
$ |
502 |
|
$ |
529 |
|
$ |
522 |
|
$ |
528 |
|
$ |
496 |
|
$ |
1,540 |
|
$ |
1,546 |
|
$ |
(6 |
) |
(1 |
)% |
$ |
6 |
|
|
|
$ |
(32 |
) |
(6 |
)% |
Operating expenses |
|
432 |
|
416 |
|
415 |
|
419 |
|
407 |
|
1,267 |
|
1,241 |
|
(25 |
) |
(6 |
)% |
(26 |
) |
(2 |
)% |
(12 |
) |
(3 |
)% | ||||||||||
Pretax operating earnings |
|
$ |
70 |
|
$ |
113 |
|
$ |
107 |
|
$ |
109 |
|
$ |
89 |
|
$ |
273 |
|
$ |
305 |
|
$ |
19 |
|
27 |
% |
$ |
32 |
|
12 |
% |
$ |
(20 |
) |
(18 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Allocated equity |
|
$ |
1,698 |
|
$ |
1,710 |
|
$ |
1,716 |
|
$ |
1,703 |
|
$ |
1,676 |
|
$ |
1,698 |
|
$ |
1,676 |
|
$ |
(22 |
) |
(1 |
)% |
$ |
(22 |
) |
(1 |
)% |
$ |
(27 |
) |
(2 |
)% |
Operating return on allocated equity (2) |
|
14.2 |
% |
15.7 |
% |
15.8 |
% |
16.4 |
% |
17.5 |
% |
14.2 |
% |
17.5 |
% |
3.3 |
% |
|
|
3.3 |
% |
|
|
1.1 |
% |
|
| ||||||||||
Pretax operating margin |
|
13.9 |
% |
21.4 |
% |
20.5 |
% |
20.6 |
% |
17.9 |
% |
17.7 |
% |
19.7 |
% |
4.0 |
% |
|
|
2.0 |
% |
|
|
(2.7 |
)% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Corporate & Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Operating total net revenues |
|
$ |
(7 |
) |
$ |
(6 |
) |
$ |
8 |
|
$ |
7 |
|
$ |
5 |
|
$ |
9 |
|
$ |
20 |
|
$ |
12 |
|
|
# |
$ |
11 |
|
|
# |
$ |
(2 |
) |
(29 |
)% |
Operating expenses |
|
53 |
|
69 |
|
73 |
|
74 |
|
62 |
|
175 |
|
209 |
|
9 |
|
17 |
% |
34 |
|
19 |
% |
(12 |
) |
(16 |
)% | ||||||||||
Pretax operating loss |
|
$ |
(60 |
) |
$ |
(75 |
) |
$ |
(65 |
) |
$ |
(67 |
) |
$ |
(57 |
) |
$ |
(166 |
) |
$ |
(189 |
) |
$ |
3 |
|
5 |
% |
$ |
(23 |
) |
(14 |
)% |
$ |
10 |
|
15 |
% |
(1) See non-GAAP financial information on pg 34.
(2) Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.
(3) Calculated as adjusted operating earnings as a percentage of adjusted operating revenues.
# Variance of greater than 100%.
Ameriprise Financial, Inc.
Advice & Wealth Management Segment
Third Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Year Comparisons |
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
Qtr Chg - 3Q |
|
YTD Chg - 3Q |
|
Seq Qtr Chg - 3Q |
| ||||||||||||||||||
(in millions unless otherwise noted, unaudited) |
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
2011 |
|
2012 |
|
Diff. |
|
% |
|
Diff. |
|
% |
|
Diff. |
|
% |
| ||||||||||
Operating Income Statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Management and financial advice fees |
|
$ |
401 |
|
$ |
395 |
|
$ |
412 |
|
$ |
430 |
|
$ |
438 |
|
$ |
1,195 |
|
$ |
1,280 |
|
$ |
37 |
|
9 |
% |
$ |
85 |
|
7 |
% |
$ |
8 |
|
2 |
% |
Distribution fees |
|
461 |
|
443 |
|
471 |
|
454 |
|
452 |
|
1,406 |
|
1,377 |
|
(9 |
) |
(2 |
)% |
(29 |
) |
(2 |
)% |
(2 |
) |
|
| ||||||||||
Net investment income |
|
73 |
|
64 |
|
64 |
|
64 |
|
63 |
|
197 |
|
191 |
|
(10 |
) |
(14 |
)% |
(6 |
) |
(3 |
)% |
(1 |
) |
(2 |
)% | ||||||||||
Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Other revenues |
|
15 |
|
15 |
|
18 |
|
15 |
|
18 |
|
46 |
|
51 |
|
3 |
|
20 |
% |
5 |
|
11 |
% |
3 |
|
20 |
% | ||||||||||
Total revenues |
|
950 |
|
917 |
|
965 |
|
963 |
|
971 |
|
2,844 |
|
2,899 |
|
21 |
|
2 |
% |
55 |
|
2 |
% |
8 |
|
1 |
% | ||||||||||
Banking and deposit interest expense |
|
12 |
|
12 |
|
11 |
|
10 |
|
10 |
|
36 |
|
31 |
|
(2 |
) |
(17 |
)% |
(5 |
) |
(14 |
)% |
|
|
|
| ||||||||||
Operating total net revenues |
|
938 |
|
905 |
|
954 |
|
953 |
|
961 |
|
2,808 |
|
2,868 |
|
23 |
|
2 |
% |
60 |
|
2 |
% |
8 |
|
1 |
% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Distribution expenses |
|
547 |
|
541 |
|
574 |
|
565 |
|
572 |
|
1,662 |
|
1,711 |
|
25 |
|
5 |
% |
49 |
|
3 |
% |
7 |
|
1 |
% | ||||||||||
Interest credited to fixed accounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Benefits, claims, losses and settlement expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Amortization of deferred acquisition costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Interest and debt expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
General and administrative expense |
|
275 |
|
281 |
|
286 |
|
277 |
|
270 |
|
823 |
|
833 |
|
(5 |
) |
(2 |
)% |
10 |
|
1 |
% |
(7 |
) |
(3 |
)% | ||||||||||
Operating expenses |
|
822 |
|
822 |
|
860 |
|
842 |
|
842 |
|
2,485 |
|
2,544 |
|
20 |
|
2 |
% |
59 |
|
2 |
% |
|
|
|
| ||||||||||
Pretax operating earnings |
|
$ |
116 |
|
$ |
83 |
|
$ |
94 |
|
$ |
111 |
|
$ |
119 |
|
$ |
323 |
|
$ |
324 |
|
$ |
3 |
|
3 |
% |
$ |
1 |
|
|
|
$ |
8 |
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Pretax operating margin |
|
12.4 |
% |
9.2 |
% |
9.9 |
% |
11.6 |
% |
12.4 |
% |
11.5 |
% |
11.3 |
% |
|
|
|
|
(0.2 |
)% |
|
|
0.8 |
% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Return on Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Allocated equity |
|
$ |
782 |
|
$ |
790 |
|
$ |
799 |
|
$ |
814 |
|
$ |
772 |
|
$ |
782 |
|
$ |
772 |
|
$ |
(10 |
) |
(1 |
)% |
$ |
(10 |
) |
(1 |
)% |
$ |
(42 |
) |
(5 |
)% |
Operating return on allocated equity (1) |
|
42.7 |
% |
40.1 |
% |
38.5 |
% |
36.7 |
% |
36.5 |
% |
42.7 |
% |
36.5 |
% |
(6.2 |
)% |
|
|
(6.2 |
)% |
|
|
(0.2 |
)% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
On-balance sheet deposits |
|
$ |
9,294 |
|
$ |
9,482 |
|
$ |
9,568 |
|
$ |
9,678 |
|
$ |
9,652 |
|
$ |
9,294 |
|
$ |
9,652 |
|
$ |
358 |
|
4 |
% |
$ |
358 |
|
4 |
% |
$ |
(26 |
) |
|
|
(1) Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.
Ameriprise Financial, Inc.
Advice & Wealth Management Segment
Third Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Year Comparisons |
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
Qtr Chg - 3Q |
|
YTD Chg - 3Q |
|
Seq Qtr Chg - 3Q |
| ||||||||||||||||||
(in millions, except headcount and where noted, unaudited) |
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
2011 |
|
2012 |
|
Diff. |
|
% |
|
Diff. |
|
% |
|
Diff. |
|
% |
| ||||||||||
Product Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Certificates and Banking - Combined |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Pretax operating earnings |
|
$ |
35 |
|
$ |
24 |
|
$ |
25 |
|
$ |
27 |
|
$ |
24 |
|
$ |
77 |
|
$ |
76 |
|
$ |
(11 |
) |
(31 |
)% |
$ |
(1 |
) |
(1 |
)% |
$ |
(3 |
) |
(11 |
)% |
Allocated equity |
|
$ |
534 |
|
$ |
542 |
|
$ |
553 |
|
$ |
568 |
|
$ |
528 |
|
$ |
534 |
|
$ |
528 |
|
$ |
(6 |
) |
(1 |
)% |
$ |
(6 |
) |
(1 |
)% |
$ |
(40 |
) |
(7 |
)% |
Operating return on allocated equity (1) |
|
16.0 |
% |
14.9 |
% |
14.9 |
% |
14.7 |
% |
13.0 |
% |
16.0 |
% |
13.0 |
% |
(3.0 |
)% |
|
|
(3.0 |
)% |
|
|
(1.7 |
)% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Wealth Management & Distribution |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Pretax operating earnings |
|
$ |
81 |
|
$ |
59 |
|
$ |
69 |
|
$ |
84 |
|
$ |
95 |
|
$ |
246 |
|
$ |
248 |
|
$ |
14 |
|
17 |
% |
$ |
2 |
|
1 |
% |
$ |
11 |
|
13 |
% |
Allocated equity |
|
$ |
248 |
|
$ |
248 |
|
$ |
246 |
|
$ |
246 |
|
$ |
244 |
|
$ |
248 |
|
$ |
244 |
|
$ |
(4 |
) |
(2 |
)% |
$ |
(4 |
) |
(2 |
)% |
$ |
(2 |
) |
(1 |
)% |
Operating return on allocated equity (1) |
|
95.2 |
% |
91.6 |
% |
88.5 |
% |
84.9 |
% |
88.3 |
% |
95.2 |
% |
88.3 |
% |
(6.9 |
)% |
|
|
(6.9 |
)% |
|
|
3.4 |
% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Financial Plans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Branded financial plan net cash sales |
|
$ |
51 |
|
$ |
59 |
|
$ |
55 |
|
$ |
56 |
|
$ |
49 |
|
$ |
159 |
|
$ |
160 |
|
$ |
(2 |
) |
(4 |
)% |
$ |
1 |
|
1 |
% |
$ |
(7 |
) |
(13 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Financial Advisors |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Employee advisors |
|
2,182 |
|
2,230 |
|
2,266 |
|
2,311 |
|
2,328 |
|
2,182 |
|
2,328 |
|
146 |
|
7 |
% |
146 |
|
7 |
% |
17 |
|
1 |
% | ||||||||||
Franchisee advisors |
|
7,532 |
|
7,500 |
|
7,478 |
|
7,492 |
|
7,487 |
|
7,532 |
|
7,487 |
|
(45 |
) |
(1 |
)% |
(45 |
) |
(1 |
)% |
(5 |
) |
|
| ||||||||||
Total branded financial advisors |
|
9,714 |
|
9,730 |
|
9,744 |
|
9,803 |
|
9,815 |
|
9,714 |
|
9,815 |
|
101 |
|
1 |
% |
101 |
|
1 |
% |
12 |
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Operating total net revenues per financial advisor (in thousands) (2) |
|
$ |
97 |
|
$ |
93 |
|
$ |
98 |
|
$ |
97 |
|
$ |
98 |
|
$ |
291 |
|
$ |
293 |
|
$ |
1 |
|
1 |
% |
$ |
2 |
|
1 |
% |
$ |
1 |
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Advisor Retention |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Employee |
|
90.5 |
% |
91.5 |
% |
92.1 |
% |
92.2 |
% |
91.5 |
% |
90.5 |
% |
91.5 |
% |
1.0 |
% |
|
|
1.0 |
% |
|
|
(0.7 |
)% |
|
| ||||||||||
Franchisee |
|
94.6 |
% |
94.6 |
% |
94.1 |
% |
94.3 |
% |
93.8 |
% |
94.6 |
% |
93.8 |
% |
(0.8 |
)% |
|
|
(0.8 |
)% |
|
|
(0.5 |
)% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Client Assets (at period end) |
|
$ |
293,313 |
|
$ |
309,864 |
|
$ |
334,086 |
|
$ |
330,847 |
|
$ |
344,857 |
|
$ |
293,313 |
|
$ |
344,857 |
|
$ |
51,544 |
|
18 |
% |
$ |
51,544 |
|
18 |
% |
$ |
14,010 |
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Wrap Accounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Beginning assets |
|
$ |
105,863 |
|
$ |
96,947 |
|
$ |
103,385 |
|
$ |
113,128 |
|
$ |
113,414 |
|
$ |
97,514 |
|
$ |
103,385 |
|
$ |
7,551 |
|
7 |
% |
$ |
5,871 |
|
6 |
% |
$ |
286 |
|
|
|
Net flows |
|
820 |
|
1,350 |
|
2,887 |
|
2,634 |
|
2,062 |
|
5,915 |
|
7,583 |
|
1,242 |
|
# |
|
1,668 |
|
28 |
% |
(572 |
) |
(22 |
)% | ||||||||||
Market appreciation (depreciation) and other |
|
(9,736 |
) |
5,088 |
|
6,856 |
|
(2,348 |
) |
5,078 |
|
(6,482 |
) |
9,586 |
|
14,814 |
|
# |
|
16,068 |
|
# |
|
7,426 |
|
# |
| ||||||||||
Total wrap ending assets |
|
$ |
96,947 |
|
$ |
103,385 |
|
$ |
113,128 |
|
$ |
113,414 |
|
$ |
120,554 |
|
$ |
96,947 |
|
$ |
120,554 |
|
$ |
23,607 |
|
24 |
% |
$ |
23,607 |
|
24 |
% |
$ |
7,140 |
|
6 |
% |
(1) Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.
(2) Year-to-date is sum of current and prior quarters for the year under review.
# Variance of greater than 100%.
Ameriprise Financial, Inc.
Asset Management Segment
Third Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Year Comparisons |
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
Qtr Chg - 3Q |
|
YTD Chg - 3Q |
|
Seq Qtr Chg - 3Q |
| ||||||||||||||||||
(in millions unless otherwise noted, unaudited) |
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
2011 |
|
2012 |
|
Diff. |
|
% |
|
Diff. |
|
% |
|
Diff. |
|
% |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Operating Income Statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Management and financial advice fees |
|
$ |
599 |
|
$ |
588 |
|
$ |
586 |
|
$ |
592 |
|
$ |
620 |
|
$ |
1,846 |
|
$ |
1,798 |
|
$ |
21 |
|
4 |
% |
$ |
(48 |
) |
(3 |
)% |
$ |
28 |
|
5 |
% |
Distribution fees |
|
108 |
|
104 |
|
111 |
|
111 |
|
109 |
|
346 |
|
331 |
|
1 |
|
1 |
% |
(15 |
) |
(4 |
)% |
(2 |
) |
(2 |
)% | ||||||||||
Net investment income |
|
(4 |
) |
11 |
|
5 |
|
2 |
|
5 |
|
|
|
12 |
|
9 |
|
|
# |
12 |
|
|
|
3 |
|
|
# | ||||||||||
Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Other revenues |
|
3 |
|
|
|
9 |
|
3 |
|
(1 |
) |
5 |
|
11 |
|
(4 |
) |
|
# |
6 |
|
|
# |
(4 |
) |
|
# | ||||||||||
Total revenues |
|
706 |
|
703 |
|
711 |
|
708 |
|
733 |
|
2,197 |
|
2,152 |
|
27 |
|
4 |
% |
(45 |
) |
(2 |
)% |
25 |
|
4 |
% | ||||||||||
Banking and deposit interest expense |
|
1 |
|
1 |
|
|
|
1 |
|
|
|
2 |
|
1 |
|
(1 |
) |
|
# |
(1 |
) |
(50 |
)% |
(1 |
) |
|
# | ||||||||||
Operating total net revenues |
|
705 |
|
702 |
|
711 |
|
707 |
|
733 |
|
2,195 |
|
2,151 |
|
28 |
|
4 |
% |
(44 |
) |
(2 |
)% |
26 |
|
4 |
% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Distribution expenses |
|
276 |
|
267 |
|
274 |
|
272 |
|
276 |
|
828 |
|
822 |
|
|
|
|
|
(6 |
) |
(1 |
)% |
4 |
|
1 |
% | ||||||||||
Interest credited to fixed accounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Benefits, claims, losses and settlement expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Amortization of deferred acquisition costs |
|
5 |
|
4 |
|
3 |
|
5 |
|
4 |
|
15 |
|
12 |
|
(1 |
) |
(20 |
)% |
(3 |
) |
(20 |
)% |
(1 |
) |
(20 |
)% | ||||||||||
Interest and debt expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
General and administrative expense |
|
305 |
|
304 |
|
303 |
|
300 |
|
298 |
|
951 |
|
901 |
|
(7 |
) |
(2 |
)% |
(50 |
) |
(5 |
)% |
(2 |
) |
(1 |
)% | ||||||||||
Operating expenses |
|
586 |
|
575 |
|
580 |
|
577 |
|
578 |
|
1,794 |
|
1,735 |
|
(8 |
) |
(1 |
)% |
(59 |
) |
(3 |
)% |
1 |
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Pretax operating earnings |
|
$ |
119 |
|
$ |
127 |
|
$ |
131 |
|
$ |
130 |
|
$ |
155 |
|
$ |
401 |
|
$ |
416 |
|
$ |
36 |
|
30 |
% |
$ |
15 |
|
4 |
% |
$ |
25 |
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Pretax operating margin |
|
16.9 |
% |
18.1 |
% |
18.4 |
% |
18.4 |
% |
21.1 |
% |
18.3 |
% |
19.3 |
% |
4.2 |
% |
|
|
1.0 |
% |
|
|
2.7 |
% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Operating total net revenues |
|
$ |
705 |
|
$ |
702 |
|
$ |
711 |
|
$ |
707 |
|
$ |
733 |
|
$ |
2,195 |
|
$ |
2,151 |
|
$ |
28 |
|
4 |
% |
$ |
(44 |
) |
(2 |
)% |
$ |
26 |
|
4 |
% |
Distribution pass thru revenues |
|
(207 |
) |
(201 |
) |
(207 |
) |
(203 |
) |
(203 |
) |
(632 |
) |
(613 |
) |
4 |
|
2 |
% |
19 |
|
3 |
% |
|
|
|
| ||||||||||
Subadvisory and other pass thru revenues |
|
(91 |
) |
(100 |
) |
(96 |
) |
(95 |
) |
(105 |
) |
(285 |
) |
(296 |
) |
(14 |
) |
(15 |
)% |
(11 |
) |
(4 |
)% |
(10 |
) |
(11 |
)% | ||||||||||
Adjusted operating revenues (1) |
|
$ |
407 |
|
$ |
401 |
|
$ |
408 |
|
$ |
409 |
|
$ |
425 |
|
$ |
1,278 |
|
$ |
1,242 |
|
$ |
18 |
|
4 |
% |
$ |
(36 |
) |
(3 |
)% |
$ |
16 |
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Pretax operating earnings |
|
$ |
119 |
|
$ |
127 |
|
$ |
131 |
|
$ |
130 |
|
$ |
155 |
|
$ |
401 |
|
$ |
416 |
|
$ |
36 |
|
30 |
% |
$ |
15 |
|
4 |
% |
$ |
25 |
|
19 |
% |
Operating net investment income |
|
4 |
|
(11 |
) |
(5 |
) |
(2 |
) |
(5 |
) |
|
|
(12 |
) |
(9 |
) |
|
# |
(12 |
) |
|
|
(3 |
) |
|
# | ||||||||||
Amortization of intangibles |
|
10 |
|
10 |
|
10 |
|
10 |
|
10 |
|
30 |
|
30 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Adjusted operating earnings (1) |
|
$ |
133 |
|
$ |
126 |
|
$ |
136 |
|
$ |
138 |
|
$ |
160 |
|
$ |
431 |
|
$ |
434 |
|
$ |
27 |
|
20 |
% |
$ |
3 |
|
1 |
% |
$ |
22 |
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Adjusted net pretax operating margin (1)(3) |
|
32.7 |
% |
31.4 |
% |
33.3 |
% |
33.7 |
% |
37.6 |
% |
33.7 |
% |
34.9 |
% |
4.9 |
% |
|
|
1.2 |
% |
|
|
3.9 |
% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Return on Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Allocated equity |
|
$ |
1,948 |
|
$ |
1,922 |
|
$ |
1,913 |
|
$ |
1,933 |
|
$ |
1,914 |
|
$ |
1,948 |
|
$ |
1,914 |
|
$ |
(34 |
) |
(2 |
)% |
$ |
(34 |
) |
(2 |
)% |
$ |
(19 |
) |
(1 |
)% |
Operating return on allocated equity (2) |
|
22.0 |
% |
20.4 |
% |
20.1 |
% |
18.9 |
% |
20.1 |
% |
22.0 |
% |
20.1 |
% |
(1.9 |
)% |
|
|
(1.9 |
)% |
|
|
1.2 |
% |
|
|
(1) See non-GAAP financial information on pg 34.
(2) Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.
(3) Calculated as adjusted operating earnings as a percentage of adjusted operating revenues.
# Variance of greater than 100%.
Ameriprise Financial, Inc.
Asset Management Segment
Third Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Year Comparisons |
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
Qtr Chg - 3Q |
|
YTD Chg - 3Q |
|
Seq Qtr Chg - 3Q |
| ||||||||||||||||||
(in millions unless otherwise noted, unaudited) |
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
2011 |
|
2012 |
|
Diff. |
|
% |
|
Diff. |
|
% |
|
Diff. |
|
% |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Managed Asset Net Flows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Columbia managed asset net flows |
|
$ |
(4,478 |
) |
$ |
(8,907 |
) |
$ |
(5,122 |
) |
$ |
(5,401 |
) |
$ |
(3,498 |
) |
$ |
(7,781 |
) |
$ |
(14,021 |
) |
$ |
980 |
|
22 |
% |
$ |
(6,240 |
) |
(80 |
)% |
$ |
1,903 |
|
35 |
% |
Threadneedle managed asset net flows (1) |
|
(756 |
) |
12,612 |
|
260 |
|
(2,436 |
) |
(165 |
) |
(2,030 |
) |
(2,341 |
) |
591 |
|
78 |
% |
(311 |
) |
(15 |
)% |
2,271 |
|
93 |
% | ||||||||||
Sub-advised eliminations (1) |
|
9 |
|
85 |
|
260 |
|
1,189 |
|
188 |
|
(881 |
) |
1,637 |
|
179 |
|
|
# |
2,518 |
|
|
# |
(1,001 |
) |
(84 |
)% | ||||||||||
Total managed asset net flows |
|
$ |
(5,225 |
) |
$ |
3,790 |
|
$ |
(4,602 |
) |
$ |
(6,648 |
) |
$ |
(3,475 |
) |
$ |
(10,692 |
) |
$ |
(14,725 |
) |
$ |
1,750 |
|
33 |
% |
$ |
(4,033 |
) |
(38 |
)% |
$ |
3,173 |
|
48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Managed Assets Reconciliations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Columbia managed assets |
|
$ |
324,654 |
|
$ |
326,119 |
|
$ |
344,006 |
|
$ |
331,934 |
|
$ |
339,943 |
|
$ |
324,654 |
|
$ |
339,943 |
|
$ |
15,289 |
|
5 |
% |
$ |
15,289 |
|
5 |
% |
$ |
8,009 |
|
2 |
% |
Threadneedle managed assets |
|
96,465 |
|
113,573 |
|
123,340 |
|
116,630 |
|
123,705 |
|
96,465 |
|
123,705 |
|
27,240 |
|
28 |
% |
27,240 |
|
28 |
% |
7,075 |
|
6 |
% | ||||||||||
Sub-advised eliminations |
|
(4,127 |
) |
(4,189 |
) |
(4,305 |
) |
(2,760 |
) |
(2,792 |
) |
(4,127 |
) |
(2,792 |
) |
1,335 |
|
32 |
% |
1,335 |
|
32 |
% |
(32 |
) |
(1 |
)% | ||||||||||
Total managed assets |
|
$ |
416,992 |
|
$ |
435,503 |
|
$ |
463,041 |
|
$ |
445,804 |
|
$ |
460,856 |
|
$ |
416,992 |
|
$ |
460,856 |
|
$ |
43,864 |
|
11 |
% |
$ |
43,864 |
|
11 |
% |
$ |
15,052 |
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Managed Assets by Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Equity |
|
$ |
198,911 |
|
$ |
209,933 |
|
$ |
231,893 |
|
$ |
213,448 |
|
$ |
224,136 |
|
$ |
198,911 |
|
$ |
224,136 |
|
$ |
25,225 |
|
13 |
% |
$ |
25,225 |
|
13 |
% |
$ |
10,688 |
|
5 |
% |
Fixed income |
|
190,025 |
|
196,542 |
|
202,256 |
|
204,340 |
|
209,742 |
|
190,025 |
|
209,742 |
|
19,717 |
|
10 |
% |
19,717 |
|
10 |
% |
5,402 |
|
3 |
% | ||||||||||
Money market |
|
6,258 |
|
7,465 |
|
6,869 |
|
6,871 |
|
6,766 |
|
6,258 |
|
6,766 |
|
508 |
|
8 |
% |
508 |
|
8 |
% |
(105 |
) |
(2 |
)% | ||||||||||
Alternative |
|
10,117 |
|
9,271 |
|
9,313 |
|
8,817 |
|
7,365 |
|
10,117 |
|
7,365 |
|
(2,752 |
) |
(27 |
)% |
(2,752 |
) |
(27 |
)% |
(1,452 |
) |
(16 |
)% | ||||||||||
Hybrid and other |
|
11,681 |
|
12,292 |
|
12,710 |
|
12,328 |
|
12,847 |
|
11,681 |
|
12,847 |
|
1,166 |
|
10 |
% |
1,166 |
|
10 |
% |
519 |
|
4 |
% | ||||||||||
Total managed assets by type |
|
$ |
416,992 |
|
$ |
435,503 |
|
$ |
463,041 |
|
$ |
445,804 |
|
$ |
460,856 |
|
$ |
416,992 |
|
$ |
460,856 |
|
$ |
43,864 |
|
11 |
% |
$ |
43,864 |
|
11 |
% |
$ |
15,052 |
|
3 |
% |
(1) Threadneedle net flows in Q2 2012 include $1.2 billion of outflows primarily due to a change in subadvisory relationship between Threadneedle and Columbia. These outflows are eliminated at the segment level.
# Variance of greater than 100%.
Ameriprise Financial, Inc.
Asset Management Segment - Columbia
Third Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Year Comparisons |
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
Qtr Chg - 3Q |
|
YTD Chg - 3Q |
|
Seq Qtr Chg - 3Q |
| ||||||||||||||||||
(in millions unless otherwise noted, unaudited) |
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
2011 |
|
2012 |
|
Diff. |
|
% |
|
Diff. |
|
% |
|
Diff. |
|
% |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Columbia Managed Assets Rollforward |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Retail Funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Beginning assets |
|
$ |
225,368 |
|
$ |
194,130 |
|
$ |
204,843 |
|
$ |
221,429 |
|
$ |
211,376 |
|
$ |
218,460 |
|
$ |
204,843 |
|
$ |
(13,992 |
) |
(6 |
)% |
$ |
(13,617 |
) |
(6 |
)% |
$ |
(10,053 |
) |
(5 |
)% |
Mutual fund inflows |
|
9,639 |
|
8,451 |
|
10,717 |
|
9,158 |
|
8,446 |
|
30,742 |
|
28,321 |
|
(1,193 |
) |
(12 |
)% |
(2,421 |
) |
(8 |
)% |
(712 |
) |
(8 |
)% | ||||||||||
Mutual fund outflows |
|
(12,349 |
) |
(11,702 |
) |
(14,267 |
) |
(14,821 |
) |
(10,204 |
) |
(36,919 |
) |
(39,292 |
) |
2,145 |
|
17 |
% |
(2,373 |
) |
(6 |
)% |
4,617 |
|
31 |
% | ||||||||||
Net VP/VIT fund flows |
|
388 |
|
417 |
|
279 |
|
(33 |
) |
(160 |
) |
1,163 |
|
86 |
|
(548 |
) |
|
# |
(1,077 |
) |
(93 |
)% |
(127 |
) |
|
# | ||||||||||
Net new flows |
|
(2,322 |
) |
(2,834 |
) |
(3,271 |
) |
(5,696 |
) |
(1,918 |
) |
(5,014 |
) |
(10,885 |
) |
404 |
|
17 |
% |
(5,871 |
) |
|
# |
3,778 |
|
66 |
% | ||||||||||
Reinvested dividends |
|
384 |
|
1,963 |
|
342 |
|
1,986 |
|
474 |
|
2,795 |
|
2,802 |
|
90 |
|
23 |
% |
7 |
|
|
|
(1,512 |
) |
(76 |
)% | ||||||||||
Net flows |
|
(1,938 |
) |
(871 |
) |
(2,929 |
) |
(3,710 |
) |
(1,444 |
) |
(2,219 |
) |
(8,083 |
) |
494 |
|
25 |
% |
(5,864 |
) |
|
# |
2,266 |
|
61 |
% | ||||||||||
Distributions |
|
(579 |
) |
(2,559 |
) |
(534 |
) |
(2,297 |
) |
(642 |
) |
(3,655 |
) |
(3,473 |
) |
(63 |
) |
(11 |
)% |
182 |
|
5 |
% |
1,655 |
|
72 |
% | ||||||||||
Market appreciation (depreciation) and other (2) |
|
(28,721 |
) |
14,143 |
|
20,049 |
|
(4,046 |
) |
9,549 |
|
(18,456 |
) |
25,552 |
|
38,270 |
|
|
# |
44,008 |
|
|
# |
13,595 |
|
|
# | ||||||||||
Total ending assets |
|
194,130 |
|
204,843 |
|
221,429 |
|
211,376 |
|
218,839 |
|
194,130 |
|
218,839 |
|
24,709 |
|
13 |
% |
24,709 |
|
13 |
% |
7,463 |
|
4 |
% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
% of total retail assets sub-advised |
|
18.3 |
% |
18.2 |
% |
18.2 |
% |
20.5 |
% |
20.5 |
% |
18.3 |
% |
20.5 |
% |
2.3 |
% |
|
|
2.3 |
% |
|
|
0.1 |
% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Institutional |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Beginning assets |
|
89,355 |
|
81,906 |
|
73,270 |
|
75,024 |
|
72,753 |
|
89,406 |
|
73,270 |
|
(16,602 |
) |
(19 |
)% |
(16,136 |
) |
(18 |
)% |
(2,271 |
) |
(3 |
)% | ||||||||||
Inflows |
|
4,508 |
|
4,376 |
|
4,176 |
|
3,720 |
|
4,366 |
|
14,019 |
|
12,262 |
|
(142 |
) |
(3 |
)% |
(1,757 |
) |
(13 |
)% |
646 |
|
17 |
% | ||||||||||
Outflows |
|
(6,889 |
) |
(11,445 |
) |
(6,063 |
) |
(5,114 |
) |
(4,911 |
) |
(18,724 |
) |
(16,088 |
) |
1,978 |
|
29 |
% |
2,636 |
|
14 |
% |
203 |
|
4 |
% | ||||||||||
Net flows |
|
(2,381 |
) |
(7,069 |
) |
(1,887 |
) |
(1,394 |
) |
(545 |
) |
(4,705 |
) |
(3,826 |
) |
1,836 |
|
77 |
% |
879 |
|
19 |
% |
849 |
|
61 |
% | ||||||||||
Market appreciation (depreciation) and other (1) |
|
(5,068 |
) |
(1,567 |
) |
3,641 |
|
(877 |
) |
2,266 |
|
(2,795 |
) |
5,030 |
|
7,334 |
|
|
# |
7,825 |
|
|
# |
3,143 |
|
|
# | ||||||||||
Total ending assets |
|
81,906 |
|
73,270 |
|
75,024 |
|
72,753 |
|
74,474 |
|
81,906 |
|
74,474 |
|
(7,432 |
) |
(9 |
)% |
(7,432 |
) |
(9 |
)% |
1,721 |
|
2 |
% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Alternative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Beginning assets |
|
9,446 |
|
8,955 |
|
8,124 |
|
8,253 |
|
7,782 |
|
9,971 |
|
8,124 |
|
(1,664 |
) |
(18 |
)% |
(1,847 |
) |
(19 |
)% |
(471 |
) |
(6 |
)% | ||||||||||
Inflows |
|
123 |
|
93 |
|
96 |
|
165 |
|
415 |
|
415 |
|
676 |
|
292 |
|
|
# |
261 |
|
63 |
% |
250 |
|
|
# | ||||||||||
Outflows |
|
(282 |
) |
(1,060 |
) |
(402 |
) |
(462 |
) |
(1,924 |
) |
(1,272 |
) |
(2,788 |
) |
(1,642 |
) |
|
# |
(1,516 |
) |
|
# |
(1,462 |
) |
|
# | ||||||||||
Net flows |
|
(159 |
) |
(967 |
) |
(306 |
) |
(297 |
) |
(1,509 |
) |
(857 |
) |
(2,112 |
) |
(1,350 |
) |
|
# |
(1,255 |
) |
|
# |
(1,212 |
) |
|
# | ||||||||||
Market appreciation (depreciation) and other |
|
(332 |
) |
136 |
|
435 |
|
(174 |
) |
81 |
|
(159 |
) |
342 |
|
413 |
|
|
# |
501 |
|
|
# |
255 |
|
|
# | ||||||||||
Total ending assets |
|
8,955 |
|
8,124 |
|
8,253 |
|
7,782 |
|
6,354 |
|
8,955 |
|
6,354 |
|
(2,601 |
) |
(29 |
)% |
(2,601 |
) |
(29 |
)% |
(1,428 |
) |
(18 |
)% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Affiliated General Account Assets |
|
39,865 |
|
40,021 |
|
39,402 |
|
40,113 |
|
40,359 |
|
39,865 |
|
40,359 |
|
494 |
|
1 |
% |
494 |
|
1 |
% |
246 |
|
1 |
% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Other and Eliminations |
|
(202 |
) |
(139 |
) |
(102 |
) |
(90 |
) |
(83 |
) |
(202 |
) |
(83 |
) |
119 |
|
59 |
% |
119 |
|
59 |
% |
7 |
|
8 |
% | ||||||||||
Total Columbia managed assets |
|
$ |
324,654 |
|
$ |
326,119 |
|
$ |
344,006 |
|
$ |
331,934 |
|
$ |
339,943 |
|
$ |
324,654 |
|
$ |
339,943 |
|
$ |
15,289 |
|
5 |
% |
$ |
15,289 |
|
5 |
% |
$ |
8,009 |
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Columbia net flows |
|
$ |
(4,478 |
) |
$ |
(8,907 |
) |
$ |
(5,122 |
) |
$ |
(5,401 |
) |
$ |
(3,498 |
) |
$ |
(7,781 |
) |
$ |
(14,021 |
) |
$ |
980 |
|
22 |
% |
$ |
(6,240 |
) |
(80 |
)% |
$ |
1,903 |
|
35 |
% |
(1) Included in Market appreciation (depreciation) and other for Institutional funds in the 4th quarter of 2011 are ($4.7B) due to the transfer of assets from Separately Managed Accounts (SMAs) to Unified Managed Accounts (UMAs).
(2) Included in Market appreciation (depreciation) and other for retail funds in the 2nd quarter of 2012 are $3B due to the transfer of Active Diversified Portfolio assets from non-proprietary to proprietary funds.
# Variance of greater than 100%.
Ameriprise Financial, Inc.
Asset Management Segment - Threadneedle
Third Quarter 2012
|
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|
|
|
Prior Year Comparisons |
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|
|
Year-to-Date |
|
Qtr Chg - 3Q |
|
YTD Chg - 3Q |
|
Seq Qtr Chg - 3Q |
| ||||||||||||||||||
(in millions unless otherwise noted, unaudited) |
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
2011 |
|
2012 |
|
Diff. |
|
% |
|
Diff. |
|
% |
|
Diff. |
|
% |
| ||||||||||
|
|
|
|
|
|
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|
|
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|
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|
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|
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| ||||||||||
Threadneedle Managed Assets Rollforward |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Retail Funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Beginning assets |
|
$ |
36,638 |
|
$ |
30,097 |
|
$ |
31,809 |
|
$ |
36,345 |
|
$ |
33,329 |
|
$ |
33,394 |
|
$ |
31,809 |
|
$ |
(3,309 |
) |
(9 |
)% |
$ |
(1,585 |
) |
(5 |
)% |
$ |
(3,016 |
) |
(8 |
)% |
Mutual fund inflows |
|
4,304 |
|
3,530 |
|
4,516 |
|
3,324 |
|
4,148 |
|
13,614 |
|
11,988 |
|
(156 |
) |
(4 |
)% |
(1,626 |
) |
(12 |
)% |
824 |
|
25 |
% | ||||||||||
Mutual fund outflows (2) |
|
(5,498 |
) |
(3,041 |
) |
(3,399 |
) |
(4,589 |
) |
(2,800 |
) |
(13,489 |
) |
(10,788 |
) |
2,698 |
|
49 |
% |
2,701 |
|
20 |
% |
1,789 |
|
39 |
% | ||||||||||
Net new flows |
|
(1,194 |
) |
489 |
|
1,117 |
|
(1,265 |
) |
1,348 |
|
125 |
|
1,200 |
|
2,542 |
|
|
# |
1,075 |
|
|
# |
2,613 |
|
|
# | ||||||||||
Reinvested dividends |
|
13 |
|
84 |
|
14 |
|
51 |
|
4 |
|
84 |
|
69 |
|
(9 |
) |
(69 |
)% |
(15 |
) |
(18 |
)% |
(47 |
) |
(92 |
)% | ||||||||||
Net flows |
|
(1,181 |
) |
573 |
|
1,131 |
|
(1,214 |
) |
1,352 |
|
209 |
|
1,269 |
|
2,533 |
|
|
# |
1,060 |
|
|
# |
2,566 |
|
|
# | ||||||||||
Distributions |
|
(180 |
) |
(213 |
) |
(74 |
) |
(156 |
) |
(67 |
) |
(398 |
) |
(297 |
) |
113 |
|
63 |
% |
101 |
|
25 |
% |
89 |
|
57 |
% | ||||||||||
Market appreciation (depreciation) |
|
(4,550 |
) |
1,296 |
|
2,387 |
|
(1,233 |
) |
1,172 |
|
(3,721 |
) |
2,326 |
|
5,722 |
|
|
# |
6,047 |
|
|
# |
2,405 |
|
|
# | ||||||||||
Foreign currency translation (1) |
|
(915 |
) |
(128 |
) |
1,033 |
|
(610 |
) |
969 |
|
(41 |
) |
1,392 |
|
1,884 |
|
|
# |
1,433 |
|
|
# |
1,579 |
|
|
# | ||||||||||
Other |
|
285 |
|
184 |
|
59 |
|
197 |
|
168 |
|
654 |
|
424 |
|
(117 |
) |
(41 |
)% |
(230 |
) |
(35 |
)% |
(29 |
) |
(15 |
)% | ||||||||||
Total ending assets |
|
30,097 |
|
31,809 |
|
36,345 |
|
33,329 |
|
36,923 |
|
30,097 |
|
36,923 |
|
6,826 |
|
23 |
% |
6,826 |
|
23 |
% |
3,594 |
|
11 |
% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Institutional |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Beginning assets |
|
72,485 |
|
65,206 |
|
80,617 |
|
85,935 |
|
82,266 |
|
70,916 |
|
80,617 |
|
9,781 |
|
13 |
% |
9,701 |
|
14 |
% |
(3,669 |
) |
(4 |
)% | ||||||||||
Inflows |
|
2,529 |
|
15,270 |
|
2,778 |
|
1,854 |
|
1,941 |
|
6,416 |
|
6,573 |
|
(588 |
) |
(23 |
)% |
157 |
|
2 |
% |
87 |
|
5 |
% | ||||||||||
Outflows |
|
(2,115 |
) |
(3,161 |
) |
(3,542 |
) |
(3,047 |
) |
(3,404 |
) |
(8,507 |
) |
(9,993 |
) |
(1,289 |
) |
(61 |
)% |
(1,486 |
) |
(17 |
)% |
(357 |
) |
(12 |
)% | ||||||||||
Net flows |
|
414 |
|
12,109 |
|
(764 |
) |
(1,193 |
) |
(1,463 |
) |
(2,091 |
) |
(3,420 |
) |
(1,877 |
) |
|
# |
(1,329 |
) |
(64 |
)% |
(270 |
) |
(23 |
)% | ||||||||||
Market appreciation (depreciation) |
|
(6,171 |
) |
3,211 |
|
3,115 |
|
(1,603 |
) |
1,951 |
|
(5,068 |
) |
3,463 |
|
8,122 |
|
|
# |
8,531 |
|
|
# |
3,554 |
|
|
# | ||||||||||
Foreign currency translation (1) |
|
(1,957 |
) |
(373 |
) |
2,437 |
|
(1,615 |
) |
2,446 |
|
17 |
|
3,268 |
|
4,403 |
|
|
# |
3,251 |
|
|
# |
4,061 |
|
|
# | ||||||||||
Other |
|
435 |
|
464 |
|
530 |
|
742 |
|
571 |
|
1,432 |
|
1,843 |
|
136 |
|
31 |
% |
411 |
|
29 |
% |
(171 |
) |
(23 |
)% | ||||||||||
Total ending assets |
|
65,206 |
|
80,617 |
|
85,935 |
|
82,266 |
|
85,771 |
|
65,206 |
|
85,771 |
|
20,565 |
|
32 |
% |
20,565 |
|
32 |
% |
3,505 |
|
4 |
% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Alternative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Beginning assets |
|
1,279 |
|
1,162 |
|
1,147 |
|
1,060 |
|
1,035 |
|
1,338 |
|
1,147 |
|
(244 |
) |
(19 |
)% |
(191 |
) |
(14 |
)% |
(25 |
) |
(2 |
)% | ||||||||||
Inflows |
|
105 |
|
31 |
|
|
|
|
|
67 |
|
251 |
|
67 |
|
(38 |
) |
(36 |
)% |
(184 |
) |
(73 |
)% |
67 |
|
|
| ||||||||||
Outflows |
|
(94 |
) |
(101 |
) |
(107 |
) |
(29 |
) |
(121 |
) |
(399 |
) |
(257 |
) |
(27 |
) |
(29 |
)% |
142 |
|
36 |
% |
(92 |
) |
|
# | ||||||||||
Net flows |
|
11 |
|
(70 |
) |
(107 |
) |
(29 |
) |
(54 |
) |
(148 |
) |
(190 |
) |
(65 |
) |
|
# |
(42 |
) |
(28 |
)% |
(25 |
) |
(86 |
)% | ||||||||||
Market appreciation (depreciation) |
|
(103 |
) |
(4 |
) |
(27 |
) |
3 |
|
(12 |
) |
(81 |
) |
(36 |
) |
91 |
|
88 |
% |
45 |
|
56 |
% |
(15 |
) |
|
# | ||||||||||
Foreign currency translation (1) |
|
(39 |
) |
(3 |
) |
33 |
|
(19 |
) |
29 |
|
2 |
|
43 |
|
68 |
|
|
# |
41 |
|
|
# |
48 |
|
|
# | ||||||||||
Other |
|
14 |
|
62 |
|
14 |
|
20 |
|
13 |
|
51 |
|
47 |
|
(1 |
) |
(7 |
)% |
(4 |
) |
(8 |
)% |
(7 |
) |
(35 |
)% | ||||||||||
Total ending assets |
|
1,162 |
|
1,147 |
|
1,060 |
|
1,035 |
|
1,011 |
|
1,162 |
|
1,011 |
|
(151 |
) |
(13 |
)% |
(151 |
) |
(13 |
)% |
(24 |
) |
(2 |
)% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Threadneedle managed assets |
|
$ |
96,465 |
|
$ |
113,573 |
|
$ |
123,340 |
|
$ |
116,630 |
|
$ |
123,705 |
|
$ |
96,465 |
|
$ |
123,705 |
|
$ |
27,240 |
|
28 |
% |
$ |
27,240 |
|
28 |
% |
$ |
7,075 |
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Threadneedle net flows |
|
$ |
(756 |
) |
$ |
12,612 |
|
$ |
260 |
|
$ |
(2,436 |
) |
$ |
(165 |
) |
$ |
(2,030 |
) |
$ |
(2,341 |
) |
$ |
591 |
|
78 |
% |
$ |
(311 |
) |
(15 |
)% |
$ |
2,271 |
|
93 |
% |
(1) Amounts represent British Pound to US dollar conversion.
(2) Retail fund outflows in Q2 2012 include $1.2 billion primarily due to a change in subadvisory relationship between Threadneedle and Columbia. These outflows are eliminated at the segment level.
# Variance of greater than 100%.
Ameriprise Financial, Inc.
Asset Management Segment - Columbia
Third Quarter 2012
Mutual Fund Rankings in top 2 Lipper Quartiles
|
|
|
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
Domestic Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equal weighted |
|
1 year |
|
54 |
% |
37 |
% |
46 |
% |
43 |
% |
54 |
% |
|
|
3 year |
|
48 |
% |
48 |
% |
60 |
% |
56 |
% |
47 |
% |
|
|
5 year |
|
66 |
% |
61 |
% |
63 |
% |
60 |
% |
57 |
% |
Asset weighted |
|
1 year |
|
56 |
% |
38 |
% |
59 |
% |
62 |
% |
64 |
% |
|
|
3 year |
|
60 |
% |
39 |
% |
76 |
% |
76 |
% |
69 |
% |
|
|
5 year |
|
60 |
% |
58 |
% |
60 |
% |
75 |
% |
72 |
% |
International Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equal weighted |
|
1 year |
|
33 |
% |
61 |
% |
83 |
% |
63 |
% |
67 |
% |
|
|
3 year |
|
41 |
% |
65 |
% |
65 |
% |
41 |
% |
50 |
% |
|
|
5 year |
|
50 |
% |
50 |
% |
64 |
% |
57 |
% |
64 |
% |
Asset weighted |
|
1 year |
|
18 |
% |
71 |
% |
93 |
% |
84 |
% |
80 |
% |
|
|
3 year |
|
61 |
% |
77 |
% |
75 |
% |
15 |
% |
65 |
% |
|
|
5 year |
|
66 |
% |
65 |
% |
84 |
% |
73 |
% |
80 |
% |
Taxable Fixed Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equal weighted |
|
1 year |
|
70 |
% |
85 |
% |
85 |
% |
75 |
% |
70 |
% |
|
|
3 year |
|
58 |
% |
55 |
% |
45 |
% |
45 |
% |
65 |
% |
|
|
5 year |
|
68 |
% |
68 |
% |
68 |
% |
74 |
% |
74 |
% |
Asset weighted |
|
1 year |
|
85 |
% |
93 |
% |
95 |
% |
82 |
% |
72 |
% |
|
|
3 year |
|
56 |
% |
64 |
% |
44 |
% |
53 |
% |
80 |
% |
|
|
5 year |
|
73 |
% |
73 |
% |
75 |
% |
81 |
% |
81 |
% |
Tax Exempt Fixed Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equal weighted |
|
1 year |
|
100 |
% |
95 |
% |
90 |
% |
90 |
% |
85 |
% |
|
|
3 year |
|
100 |
% |
85 |
% |
95 |
% |
95 |
% |
95 |
% |
|
|
5 year |
|
95 |
% |
95 |
% |
90 |
% |
90 |
% |
95 |
% |
Asset weighted |
|
1 year |
|
100 |
% |
85 |
% |
82 |
% |
83 |
% |
77 |
% |
|
|
3 year |
|
100 |
% |
84 |
% |
85 |
% |
85 |
% |
86 |
% |
|
|
5 year |
|
99 |
% |
99 |
% |
98 |
% |
98 |
% |
99 |
% |
Asset Allocation Funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equal weighted |
|
1 year |
|
95 |
% |
86 |
% |
91 |
% |
91 |
% |
40 |
% |
|
|
3 year |
|
57 |
% |
48 |
% |
67 |
% |
71 |
% |
85 |
% |
|
|
5 year |
|
57 |
% |
57 |
% |
52 |
% |
52 |
% |
85 |
% |
Asset weighted |
|
1 year |
|
92 |
% |
85 |
% |
92 |
% |
92 |
% |
43 |
% |
|
|
3 year |
|
88 |
% |
79 |
% |
89 |
% |
90 |
% |
91 |
% |
|
|
5 year |
|
88 |
% |
88 |
% |
88 |
% |
90 |
% |
91 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of funds with 4 or 5 Morningstar star ratings |
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall |
|
|
|
54 |
|
52 |
|
56 |
|
56 |
|
53 |
|
3 year |
|
|
|
48 |
|
46 |
|
53 |
|
53 |
|
52 |
|
5 year |
|
|
|
46 |
|
49 |
|
49 |
|
45 |
|
43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent of funds with 4 or 5 Morningstar star ratings |
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall |
|
|
|
46 |
% |
44 |
% |
47 |
% |
47 |
% |
47 |
% |
3 year |
|
|
|
41 |
% |
39 |
% |
44 |
% |
45 |
% |
46 |
% |
5 year |
|
|
|
41 |
% |
44 |
% |
44 |
% |
41 |
% |
41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent of assets with 4 or 5 Morningstar star ratings |
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall |
|
|
|
58 |
% |
59 |
% |
66 |
% |
64 |
% |
66 |
% |
3 year |
|
|
|
39 |
% |
40 |
% |
53 |
% |
40 |
% |
47 |
% |
5 year |
|
|
|
41 |
% |
42 |
% |
44 |
% |
43 |
% |
43 |
% |
Mutual fund performance rankings are based on the performance of Class Z fund shares for Columbia branded mutual funds. In instances where a funds Class Z shares do not have a full one, three or five year track record, performance for an older share class of the same fund, typically Class A shares, is utilized for the period before Class Z shares were launched. No adjustments to the historical track records are made to account for differences in fund expenses between share classes of a fund.
Equal Weighted Rankings in Top 2 Quartiles: Counts the number of funds with above median ranking divided by the total number of funds. Asset size is not a factor.
Asset Weighted Rankings in Top 2 Quartiles: Sums the total assets of the funds with above median ranking (using Class Z and appended Class Z) divided by total assets of all funds. Funds with more assets will receive a greater share of the total percentage above or below median.
Aggregated data includes all Columbia branded mutual funds.
Ameriprise Financial, Inc.
Asset Management Segment - Threadneedle
Third Quarter 2012
Retail Fund Rankings in Top 2 Morningstar Quartiles or Above Index Benchmark
|
|
|
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equal weighted |
|
1 year |
|
65 |
% |
65 |
% |
73 |
% |
65 |
% |
59 |
% |
|
|
3 year |
|
78 |
% |
72 |
% |
73 |
% |
85 |
% |
78 |
% |
|
|
5 year |
|
86 |
% |
86 |
% |
86 |
% |
80 |
% |
83 |
% |
Asset weighted |
|
1 year |
|
67 |
% |
68 |
% |
84 |
% |
87 |
% |
61 |
% |
|
|
3 year |
|
82 |
% |
76 |
% |
78 |
% |
91 |
% |
80 |
% |
|
|
5 year |
|
90 |
% |
86 |
% |
87 |
% |
86 |
% |
88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equal weighted |
|
1 year |
|
64 |
% |
69 |
% |
79 |
% |
67 |
% |
92 |
% |
|
|
3 year |
|
69 |
% |
77 |
% |
85 |
% |
64 |
% |
76 |
% |
|
|
5 year |
|
73 |
% |
82 |
% |
82 |
% |
64 |
% |
73 |
% |
Asset weighted |
|
1 year |
|
58 |
% |
69 |
% |
80 |
% |
39 |
% |
99 |
% |
|
|
3 year |
|
62 |
% |
75 |
% |
80 |
% |
41 |
% |
52 |
% |
|
|
5 year |
|
91 |
% |
97 |
% |
97 |
% |
68 |
% |
75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocation (Managed) Funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equal weighted |
|
1 year |
|
50 |
% |
33 |
% |
67 |
% |
0 |
% |
67 |
% |
|
|
3 year |
|
83 |
% |
67 |
% |
50 |
% |
67 |
% |
67 |
% |
|
|
5 year |
|
100 |
% |
100 |
% |
100 |
% |
100 |
% |
83 |
% |
Asset weighted |
|
1 year |
|
54 |
% |
14 |
% |
80 |
% |
0 |
% |
77 |
% |
|
|
3 year |
|
87 |
% |
49 |
% |
41 |
% |
78 |
% |
77 |
% |
|
|
5 year |
|
100 |
% |
100 |
% |
100 |
% |
100 |
% |
86 |
% |
The performance of each fund is measured on a consistent basis against the most appropriate benchmark - a peer group of similar funds or an index.
Equal weighted: Counts the number of funds with above median ranking (if measured against peer group) or above index performance (if measured against an index) divided by the total number of funds. Asset size is not a factor.
Asset weighted: Sums the assets of the funds with above median ranking (if measured against peer group) or above index performance (if measured against an index) divided by the total sum of assets in the funds. Funds with more assets will receive a greater share of the total percentage above or below median or index.
Aggregated Allocation (Managed) Funds include funds that invest in other funds of the Threadneedle range including those funds that invest in both equity and fixed income.
Aggregated Threadneedle data includes funds on the Threadneedle platform sub-advised by Columbia as well as advisors not affiliated with Ameriprise Financial, Inc.
Ameriprise Financial, Inc.
Annuities Segment
Third Quarter 2012
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|
Prior Year Comparisons |
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| ||||||||||||||||
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|
Year-to-Date |
|
Qtr Chg - 3Q |
|
YTD Chg - 3Q |
|
Seq Qtr Chg - 3Q |
| ||||||||||||||||||
(in millions unless otherwise noted, unaudited) |
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
2011 |
|
2012 |
|
Diff. |
|
% |
|
Diff. |
|
% |
|
Diff. |
|
% |
| ||||||||||
|
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| ||||||||||
Operating Income Statements |
|
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|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Management and financial advice fees |
|
$ |
152 |
|
$ |
154 |
|
$ |
160 |
|
$ |
159 |
|
$ |
163 |
|
$ |
468 |
|
$ |
482 |
|
$ |
11 |
|
7 |
% |
$ |
14 |
|
3 |
% |
$ |
4 |
|
3 |
% |
Distribution fees |
|
80 |
|
76 |
|
76 |
|
78 |
|
82 |
|
236 |
|
236 |
|
2 |
|
3 |
% |
|
|
|
|
4 |
|
5 |
% | ||||||||||
Net investment income |
|
344 |
|
304 |
|
293 |
|
287 |
|
276 |
|
975 |
|
856 |
|
(68 |
) |
(20 |
)% |
(119 |
) |
(12 |
)% |
(11 |
) |
(4 |
)% | ||||||||||
Premiums |
|
44 |
|
34 |
|
32 |
|
28 |
|
30 |
|
127 |
|
90 |
|
(14 |
) |
(32 |
)% |
(37 |
) |
(29 |
)% |
2 |
|
7 |
% | ||||||||||
Other revenues |
|
68 |
|
66 |
|
67 |
|
76 |
|
81 |
|
190 |
|
224 |
|
13 |
|
19 |
% |
34 |
|
18 |
% |
5 |
|
7 |
% | ||||||||||
Total revenues |
|
688 |
|
634 |
|
628 |
|
628 |
|
632 |
|
1,996 |
|
1,888 |
|
(56 |
) |
(8 |
)% |
(108 |
) |
(5 |
)% |
4 |
|
1 |
% | ||||||||||
Banking and deposit interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Operating total net revenues |
|
688 |
|
634 |
|
628 |
|
628 |
|
632 |
|
1,996 |
|
1,888 |
|
(56 |
) |
(8 |
)% |
(108 |
) |
(5 |
)% |
4 |
|
1 |
% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Distribution expenses |
|
103 |
|
97 |
|
100 |
|
97 |
|
98 |
|
303 |
|
295 |
|
(5 |
) |
(5 |
)% |
(8 |
) |
(3 |
)% |
1 |
|
1 |
% | ||||||||||
Interest credited to fixed accounts |
|
178 |
|
186 |
|
171 |
|
174 |
|
173 |
|
528 |
|
518 |
|
(5 |
) |
(3 |
)% |
(10 |
) |
(2 |
)% |
(1 |
) |
(1 |
)% | ||||||||||
Benefits, claims, losses and settlement expenses |
|
96 |
|
93 |
|
78 |
|
121 |
|
143 |
|
312 |
|
342 |
|
47 |
|
49 |
% |
30 |
|
10 |
% |
22 |
|
18 |
% | ||||||||||
Amortization of deferred acquisition costs |
|
124 |
|
38 |
|
34 |
|
57 |
|
72 |
|
226 |
|
163 |
|
(52 |
) |
(42 |
)% |
(63 |
) |
(28 |
)% |
15 |
|
26 |
% | ||||||||||
Interest and debt expense |
|
1 |
|
|
|
1 |
|
|
|
|
|
1 |
|
1 |
|
(1 |
) |
# |
|
|
|
|
|
|
|
|
| ||||||||||
General and administrative expense |
|
51 |
|
56 |
|
55 |
|
63 |
|
55 |
|
165 |
|
173 |
|
4 |
|
8 |
% |
8 |
|
5 |
% |
(8 |
) |
(13 |
)% | ||||||||||
Operating expenses |
|
553 |
|
470 |
|
439 |
|
512 |
|
541 |
|
1,535 |
|
1,492 |
|
(12 |
) |
(2 |
)% |
(43 |
) |
(3 |
)% |
29 |
|
6 |
% | ||||||||||
Pretax operating earnings |
|
$ |
135 |
|
$ |
164 |
|
$ |
189 |
|
$ |
116 |
|
$ |
91 |
|
$ |
461 |
|
$ |
396 |
|
$ |
(44 |
) |
(33 |
)% |
$ |
(65 |
) |
(14 |
)% |
$ |
(25 |
) |
(22 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Pretax operating margin |
|
19.6 |
% |
25.9 |
% |
30.1 |
% |
18.5 |
% |
14.4 |
% |
23.1 |
% |
21.0 |
% |
(5.2 |
)% |
|
|
(2.1 |
)% |
|
|
(4.1 |
)% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Return on Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Allocated equity |
|
$ |
2,298 |
|
$ |
1,931 |
|
$ |
1,651 |
|
$ |
1,537 |
|
$ |
1,507 |
|
$ |
2,298 |
|
$ |
1,507 |
|
$ |
(791 |
) |
(34 |
)% |
$ |
(791 |
) |
(34 |
)% |
$ |
(30 |
) |
(2 |
)% |
Operating return on allocated equity (1) |
|
23.4 |
% |
23.3 |
% |
24.1 |
% |
23.1 |
% |
22.5 |
% |
23.4 |
% |
22.5 |
% |
(0.9 |
)% |
|
|
(0.9 |
)% |
|
|
(0.6 |
)% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Market impact on variable annuity guaranteed living benefits (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Risk margin and nonperformance spread impact |
|
$ |
263 |
|
$ |
(56 |
) |
$ |
(60 |
) |
$ |
99 |
|
$ |
(32 |
) |
$ |
272 |
|
$ |
7 |
|
$ |
(295 |
) |
# |
|
$ |
(265 |
) |
(97 |
)% |
$ |
(131 |
) |
# |
|
Other |
|
(186 |
) |
(55 |
) |
(53 |
) |
(115 |
) |
(59 |
) |
(223 |
) |
(227 |
) |
127 |
|
68 |
% |
(4 |
) |
(2 |
)% |
56 |
|
49 |
% | ||||||||||
Total VA guaranteed living benefit impact excluded from operating earnings |
|
$ |
77 |
|
$ |
(111 |
) |
$ |
(113 |
) |
$ |
(16 |
) |
$ |
(91 |
) |
$ |
49 |
|
$ |
(220 |
) |
$ |
(168 |
) |
# |
|
$ |
(269 |
) |
# |
|
$ |
(75 |
) |
# |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total annuity net flows |
|
$ |
19 |
|
$ |
69 |
|
$ |
(101 |
) |
$ |
(324 |
) |
$ |
(396 |
) |
$ |
(174 |
) |
$ |
(821 |
) |
$ |
(415 |
) |
# |
|
$ |
(647 |
) |
# |
|
$ |
(72 |
) |
(22 |
)% |
(1) Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.
(2) Guaranteed Minimum Withdrawal Benefit (GMWB) and Guaranteed Minimum Accumulation Benefit (GMAB) only, net of hedges, DSIC and DAC amortization.
# Variance of greater than 100%.
Ameriprise Financial, Inc.
Annuities Segment
Third Quarter 2012
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|
|
Prior Year Comparisons |
|
|
|
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| ||||||||||||||||
|
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|
|
Year-to-Date |
|
Qtr Chg - 3Q |
|
YTD Chg - 3Q |
|
Seq Qtr Chg - 3Q |
| ||||||||||||||||||
(in millions unless otherwise noted, unaudited) |
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
2011 |
|
2012 |
|
Diff. |
|
% |
|
Diff. |
|
% |
|
Diff. |
|
% |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Product Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Variable Annuities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Pretax operating earnings |
|
$ |
60 |
|
$ |
118 |
|
$ |
133 |
|
$ |
83 |
|
$ |
31 |
|
$ |
247 |
|
$ |
247 |
|
$ |
(29 |
) |
(48 |
)% |
$ |
|
|
|
|
$ |
(52 |
) |
(63 |
)% |
Allocated equity |
|
$ |
1,001 |
|
$ |
593 |
|
$ |
359 |
|
$ |
273 |
|
$ |
269 |
|
$ |
1,001 |
|
$ |
269 |
|
$ |
(732 |
) |
(73 |
)% |
$ |
(732 |
) |
(73 |
)% |
$ |
(4 |
) |
(1 |
)% |
Operating return on allocated equity (1) |
|
36.0 |
% |
38.4 |
% |
44.7 |
% |
47.9 |
% |
52.4 |
% |
36.0 |
% |
52.4 |
% |
16.4 |
% |
|
|
16.4 |
% |
|
|
4.5 |
% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Fixed Annuities (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Pretax operating earnings |
|
$ |
75 |
|
$ |
46 |
|
$ |
56 |
|
$ |
33 |
|
$ |
60 |
|
$ |
214 |
|
$ |
149 |
|
$ |
(15 |
) |
(20 |
)% |
$ |
(65 |
) |
(30 |
)% |
$ |
27 |
|
82 |
% |
Allocated equity |
|
$ |
1,297 |
|
$ |
1,338 |
|
$ |
1,292 |
|
$ |
1,264 |
|
$ |
1,238 |
|
$ |
1,297 |
|
$ |
1,238 |
|
$ |
(59 |
) |
(5 |
)% |
$ |
(59 |
) |
(5 |
)% |
$ |
(26 |
) |
(2 |
)% |
Operating return on allocated equity (1) |
|
16.6 |
% |
15.0 |
% |
13.8 |
% |
11.8 |
% |
10.9 |
% |
16.6 |
% |
10.9 |
% |
(5.7 |
)% |
|
|
(5.7 |
)% |
|
|
(0.9 |
)% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Variable Annuities Rollforward |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Beginning balance |
|
$ |
65,223 |
|
$ |
58,934 |
|
$ |
62,343 |
|
$ |
66,960 |
|
$ |
65,197 |
|
$ |
62,637 |
|
$ |
62,343 |
|
$ |
(26 |
) |
|
|
$ |
(294 |
) |
|
|
$ |
(1,763 |
) |
(3 |
)% |
Deposits |
|
1,554 |
|
1,553 |
|
1,593 |
|
1,178 |
|
1,126 |
|
4,846 |
|
3,897 |
|
(428 |
) |
(28 |
)% |
(949 |
) |
(20 |
)% |
(52 |
) |
(4 |
)% | ||||||||||
Withdrawals and terminations |
|
(1,375 |
) |
(1,326 |
) |
(1,507 |
) |
(1,325 |
) |
(1,308 |
) |
(4,400 |
) |
(4,140 |
) |
67 |
|
5 |
% |
260 |
|
6 |
% |
17 |
|
1 |
% | ||||||||||
Net flows |
|
179 |
|
227 |
|
86 |
|
(147 |
) |
(182 |
) |
446 |
|
(243 |
) |
(361 |
) |
# |
|
(689 |
) |
# |
|
(35 |
) |
(24 |
)% | ||||||||||
Investment performance and interest credited |
|
(6,468 |
) |
3,182 |
|
4,531 |
|
(1,611 |
) |
2,504 |
|
(4,149 |
) |
5,424 |
|
8,972 |
|
# |
|
9,573 |
|
# |
|
4,115 |
|
# |
| ||||||||||
Other |
|
|
|
|
|
|
|
(5 |
) |
(4 |
) |
|
|
(9 |
) |
(4 |
) |
|
|
(9 |
) |
|
|
1 |
|
20 |
% | ||||||||||
Total ending balance - contract accumulation values |
|
$ |
58,934 |
|
$ |
62,343 |
|
$ |
66,960 |
|
$ |
65,197 |
|
$ |
67,515 |
|
$ |
58,934 |
|
$ |
67,515 |
|
$ |
8,581 |
|
15 |
% |
$ |
8,581 |
|
15 |
% |
$ |
2,318 |
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Variable annuities fixed sub-accounts |
|
$ |
4,797 |
|
$ |
4,847 |
|
$ |
4,849 |
|
$ |
4,822 |
|
$ |
4,833 |
|
$ |
4,797 |
|
$ |
4,833 |
|
$ |
36 |
|
1 |
% |
$ |
36 |
|
1 |
% |
$ |
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Fixed Annuities Rollforward |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Beginning balance |
|
$ |
14,242 |
|
$ |
14,210 |
|
$ |
14,193 |
|
$ |
14,133 |
|
$ |
14,088 |
|
$ |
14,441 |
|
$ |
14,193 |
|
$ |
(154 |
) |
(1 |
)% |
$ |
(248 |
) |
(2 |
)% |
$ |
(45 |
) |
|
|
Deposits |
|
132 |
|
144 |
|
133 |
|
122 |
|
91 |
|
348 |
|
346 |
|
(41 |
) |
(31 |
)% |
(2 |
) |
(1 |
)% |
(31 |
) |
(25 |
)% | ||||||||||
Withdrawals and terminations |
|
(292 |
) |
(302 |
) |
(320 |
) |
(299 |
) |
(305 |
) |
(968 |
) |
(924 |
) |
(13 |
) |
(4 |
)% |
44 |
|
5 |
% |
(6 |
) |
(2 |
)% | ||||||||||
Net flows |
|
(160 |
) |
(158 |
) |
(187 |
) |
(177 |
) |
(214 |
) |
(620 |
) |
(578 |
) |
(54 |
) |
(34 |
)% |
42 |
|
7 |
% |
(37 |
) |
(21 |
)% | ||||||||||
Policyholder interest credited |
|
128 |
|
133 |
|
127 |
|
127 |
|
127 |
|
389 |
|
381 |
|
(1 |
) |
(1 |
)% |
(8 |
) |
(2 |
)% |
|
|
|
| ||||||||||
Other |
|
|
|
8 |
|
|
|
5 |
|
|
|
|
|
5 |
|
|
|
|
|
5 |
|
|
|
(5 |
) |
# |
| ||||||||||
Total ending balance - contract accumulation values |
|
$ |
14,210 |
|
$ |
14,193 |
|
$ |
14,133 |
|
$ |
14,088 |
|
$ |
14,001 |
|
$ |
14,210 |
|
$ |
14,001 |
|
$ |
(209 |
) |
(1 |
)% |
$ |
(209 |
) |
(1 |
)% |
$ |
(87 |
) |
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Capitalized interest |
|
$ |
1 |
|
$ |
1 |
|
$ |
1 |
|
$ |
1 |
|
$ |
1 |
|
$ |
4 |
|
$ |
3 |
|
$ |
|
|
|
|
$ |
(1 |
) |
(25 |
)% |
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Payout Annuities Reserve Balance |
|
$ |
2,151 |
|
$ |
2,153 |
|
$ |
2,148 |
|
$ |
2,150 |
|
$ |
2,151 |
|
$ |
2,151 |
|
$ |
2,151 |
|
$ |
|
|
|
|
$ |
|
|
|
|
$ |
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Tax Equivalent Spread - Fixed Annuities (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Gross rate of return on invested assets (4)(5) |
|
6.1 |
% |
6.0 |
% |
5.9 |
% |
5.7 |
% |
5.6 |
% |
6.2 |
% |
5.7 |
% |
(0.5 |
)% |
|
|
(0.5 |
)% |
|
|
(0.1 |
)% |
|
| ||||||||||
Crediting rate excluding capitalized interest |
|
(3.7 |
)% |
(3.7 |
)% |
(3.7 |
)% |
(3.6 |
)% |
(3.6 |
)% |
(3.7 |
)% |
(3.6 |
)% |
0.1 |
% |
|
|
0.1 |
% |
|
|
|
|
|
| ||||||||||
Tax equivalent margin spread |
|
2.4 |
% |
2.3 |
% |
2.2 |
% |
2.1 |
% |
2.0 |
% |
2.5 |
% |
2.1 |
% |
(0.4 |
)% |
|
|
(0.4 |
)% |
|
|
(0.1 |
)% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Variable Annuities DAC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Beginning balance |
|
$ |
1,529 |
|
$ |
1,429 |
|
$ |
1,491 |
|
$ |
1,549 |
|
$ |
1,533 |
|
$ |
1,508 |
|
$ |
1,491 |
|
$ |
4 |
|
|
|
$ |
(17 |
) |
(1 |
)% |
$ |
(16 |
) |
(1 |
)% |
Capitalization |
|
49 |
|
49 |
|
48 |
|
38 |
|
40 |
|
153 |
|
126 |
|
(9 |
) |
(18 |
)% |
(27 |
) |
(18 |
)% |
2 |
|
5 |
% | ||||||||||
Amortization due to market impact on VA guaranteed living benefits |
|
(42 |
) |
41 |
|
36 |
|
(5 |
) |
26 |
|
(36 |
) |
57 |
|
68 |
|
# |
|
93 |
|
# |
|
31 |
|
# |
| ||||||||||
Amortization per income statement |
|
(101 |
) |
(27 |
) |
(24 |
) |
(47 |
) |
(78 |
) |
(183 |
) |
(149 |
) |
23 |
|
23 |
% |
34 |
|
19 |
% |
(31 |
) |
(66 |
)% | ||||||||||
Other |
|
(6 |
) |
(1 |
) |
(2 |
) |
(2 |
) |
(14 |
) |
(13 |
) |
(18 |
) |
(8 |
) |
# |
|
(5 |
) |
(38 |
)% |
(12 |
) |
# |
| ||||||||||
Total ending balance |
|
$ |
1,429 |
|
$ |
1,491 |
|
$ |
1,549 |
|
$ |
1,533 |
|
$ |
1,507 |
|
$ |
1,429 |
|
$ |
1,507 |
|
$ |
78 |
|
5 |
% |
$ |
78 |
|
5 |
% |
$ |
(26 |
) |
(2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Fixed Annuities DAC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Beginning balance |
|
$ |
146 |
|
$ |
115 |
|
$ |
108 |
|
$ |
86 |
|
$ |
74 |
|
$ |
169 |
|
$ |
108 |
|
$ |
(72 |
) |
(49 |
)% |
$ |
(61 |
) |
(36 |
)% |
$ |
(12 |
) |
(14 |
)% |
Capitalization |
|
2 |
|
4 |
|
3 |
|
3 |
|
2 |
|
7 |
|
8 |
|
|
|
|
|
1 |
|
14 |
% |
(1 |
) |
(33 |
)% | ||||||||||
Amortization per income statement |
|
(23 |
) |
(11 |
) |
(10 |
) |
(10 |
) |
6 |
|
(43 |
) |
(14 |
) |
29 |
|
# |
|
29 |
|
67 |
% |
16 |
|
# |
| ||||||||||
Other |
|
(10 |
) |
|
|
(15 |
) |
(5 |
) |
(11 |
) |
(18 |
) |
(31 |
) |
(1 |
) |
(10 |
)% |
(13 |
) |
(72 |
)% |
(6 |
) |
# |
| ||||||||||
Total ending balance |
|
$ |
115 |
|
$ |
108 |
|
$ |
86 |
|
$ |
74 |
|
$ |
71 |
|
$ |
115 |
|
$ |
71 |
|
$ |
(44 |
) |
(38 |
)% |
$ |
(44 |
) |
(38 |
)% |
$ |
(3 |
) |
(4 |
)% |
(1) Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.
(2) Includes payout annuities.
(3) Attributable to interest sensitive products only, which has been approximately 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.
(4) In the 3rd quarter of 2011 through the 3rd quarter of 2012, the Gross rates of return on invested assets were impacted by outstanding repurchase agreements. Without these positions, the Gross rates of return on invested assets would have been 5.8%, 5.7%, 5.7%, 5.5% and 5.4% respectively.
(5) The Gross rate of return on invested assets for the 3rd quarter 2011 is shown net of an adjustment for additional bond discount amortization investment income related to prior periods resulting from revisions to the accounting classification of certain structured securities. Including the adjustment, the Gross rate of return on invested assets in the 3rd quarter 2011 is 7.1%.
# Variance of greater than 100%.
Ameriprise Financial, Inc.
Protection Segment
Third Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Year Comparisons |
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
Qtr Chg - 3Q |
|
YTD Chg - 3Q |
|
Seq Qtr Chg - 3Q |
| ||||||||||||||||||
(in millions unless otherwise noted, unaudited) |
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
2011 |
|
2012 |
|
Diff. |
|
% |
|
Diff. |
|
% |
|
Diff. |
|
% |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Operating Income Statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Management and financial advice fees |
|
$ |
13 |
|
$ |
14 |
|
$ |
14 |
|
$ |
13 |
|
$ |
14 |
|
$ |
42 |
|
$ |
41 |
|
$ |
1 |
|
8 |
% |
$ |
(1 |
) |
(2 |
)% |
$ |
1 |
|
8 |
% |
Distribution fees |
|
24 |
|
25 |
|
23 |
|
23 |
|
22 |
|
70 |
|
68 |
|
(2 |
) |
(8 |
)% |
(2 |
) |
(3 |
)% |
(1 |
) |
(4 |
)% | ||||||||||
Net investment income |
|
107 |
|
103 |
|
106 |
|
106 |
|
110 |
|
323 |
|
322 |
|
3 |
|
3 |
% |
(1 |
) |
|
|
4 |
|
4 |
% | ||||||||||
Premiums |
|
271 |
|
276 |
|
273 |
|
278 |
|
283 |
|
800 |
|
834 |
|
12 |
|
4 |
% |
34 |
|
4 |
% |
5 |
|
2 |
% | ||||||||||
Other revenues |
|
87 |
|
112 |
|
107 |
|
108 |
|
67 |
|
305 |
|
282 |
|
(20 |
) |
(23 |
)% |
(23 |
) |
(8 |
)% |
(41 |
) |
(38 |
)% | ||||||||||
Total revenues |
|
502 |
|
530 |
|
523 |
|
528 |
|
496 |
|
1,540 |
|
1,547 |
|
(6 |
) |
(1 |
)% |
7 |
|
|
|
(32 |
) |
(6 |
)% | ||||||||||
Banking and deposit interest expense |
|
|
|
1 |
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
1 |
|
|
|
|
|
|
| ||||||||||
Operating total net revenues |
|
502 |
|
529 |
|
522 |
|
528 |
|
496 |
|
1,540 |
|
1,546 |
|
(6 |
) |
(1 |
)% |
6 |
|
|
|
(32 |
) |
(6 |
)% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Distribution expenses |
|
16 |
|
15 |
|
15 |
|
18 |
|
16 |
|
47 |
|
49 |
|
|
|
|
|
2 |
|
4 |
% |
(2 |
) |
(11 |
)% | ||||||||||
Interest credited to fixed accounts |
|
36 |
|
36 |
|
35 |
|
35 |
|
34 |
|
106 |
|
104 |
|
(2 |
) |
(6 |
)% |
(2 |
) |
(2 |
)% |
(1 |
) |
(3 |
)% | ||||||||||
Benefits, claims, losses and settlement expenses |
|
281 |
|
266 |
|
265 |
|
264 |
|
269 |
|
819 |
|
798 |
|
(12 |
) |
(4 |
)% |
(21 |
) |
(3 |
)% |
5 |
|
2 |
% | ||||||||||
Amortization of deferred acquisition costs |
|
31 |
|
30 |
|
30 |
|
32 |
|
17 |
|
89 |
|
79 |
|
(14 |
) |
(45 |
)% |
(10 |
) |
(11 |
)% |
(15 |
) |
(47 |
)% | ||||||||||
Interest and debt expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
General and administrative expense |
|
68 |
|
69 |
|
70 |
|
70 |
|
71 |
|
206 |
|
211 |
|
3 |
|
4 |
% |
5 |
|
2 |
% |
1 |
|
1 |
% | ||||||||||
Operating expenses |
|
432 |
|
416 |
|
415 |
|
419 |
|
407 |
|
1,267 |
|
1,241 |
|
(25 |
) |
(6 |
)% |
(26 |
) |
(2 |
)% |
(12 |
) |
(3 |
)% | ||||||||||
Pretax operating earnings |
|
$ |
70 |
|
$ |
113 |
|
$ |
107 |
|
$ |
109 |
|
$ |
89 |
|
$ |
273 |
|
$ |
305 |
|
$ |
19 |
|
27 |
% |
$ |
32 |
|
12 |
% |
$ |
(20 |
) |
(18 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Pretax operating margin |
|
13.9 |
% |
21.4 |
% |
20.5 |
% |
20.6 |
% |
17.9 |
% |
17.7 |
% |
19.7 |
% |
4.0 |
% |
|
|
2.0 |
% |
|
|
(2.7 |
)% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Return on Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Allocated equity |
|
$ |
1,698 |
|
$ |
1,710 |
|
$ |
1,716 |
|
$ |
1,703 |
|
$ |
1,676 |
|
$ |
1,698 |
|
$ |
1,676 |
|
$ |
(22 |
) |
(1 |
)% |
$ |
(22 |
) |
(1 |
)% |
$ |
(27 |
) |
(2 |
)% |
Operating return on allocated equity (1) |
|
14.2 |
% |
15.7 |
% |
15.8 |
% |
16.4 |
% |
17.5 |
% |
14.2 |
% |
17.5 |
% |
3.3 |
% |
|
|
3.3 |
% |
|
|
1.1 |
% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Product Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Long Term Care |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Pretax operating earnings |
|
$ |
11 |
|
$ |
3 |
|
$ |
2 |
|
$ |
2 |
|
$ |
(2 |
) |
$ |
29 |
|
$ |
2 |
|
$ |
(13 |
) |
|
# |
$ |
(27 |
) |
(93 |
)% |
$ |
(4 |
) |
|
# |
Allocated equity |
|
$ |
429 |
|
$ |
423 |
|
$ |
436 |
|
$ |
442 |
|
$ |
442 |
|
$ |
429 |
|
$ |
442 |
|
$ |
13 |
|
3 |
% |
$ |
13 |
|
3 |
% |
$ |
|
|
|
|
Operating return on allocated equity (1) |
|
5.1 |
% |
4.3 |
% |
3.5 |
% |
2.8 |
% |
0.8 |
% |
5.1 |
% |
0.8 |
% |
(4.3 |
)% |
|
|
(4.3 |
)% |
|
|
(2.0 |
)% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Protection excluding Long Term Care |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Pretax operating earnings |
|
$ |
59 |
|
$ |
110 |
|
$ |
105 |
|
$ |
107 |
|
$ |
91 |
|
$ |
244 |
|
$ |
303 |
|
$ |
32 |
|
54 |
% |
$ |
59 |
|
24 |
% |
$ |
(16 |
) |
(15 |
)% |
Allocated equity |
|
$ |
1,269 |
|
$ |
1,287 |
|
$ |
1,280 |
|
$ |
1,261 |
|
$ |
1,234 |
|
$ |
1,269 |
|
$ |
1,234 |
|
$ |
(35 |
) |
(3 |
)% |
$ |
(35 |
) |
(3 |
)% |
$ |
(27 |
) |
(2 |
)% |
Operating return on allocated equity (1) |
|
18.4 |
% |
20.5 |
% |
20.7 |
% |
21.4 |
% |
23.2 |
% |
18.4 |
% |
23.2 |
% |
4.8 |
% |
|
|
4.8 |
% |
|
|
1.8 |
% |
|
|
(1) Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.
# Variance of greater than 100%.
Ameriprise Financial, Inc.
Protection Segment
Third Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Year Comparisons |
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
Qtr Chg - 3Q |
|
YTD Chg - 3Q |
|
Seq Qtr Chg - 3Q |
| ||||||||||||||||||
(in millions unless otherwise noted, unaudited) |
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
2011 |
|
2012 |
|
Diff. |
|
% |
|
Diff. |
|
% |
|
Diff. |
|
% |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Cash Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
VUL / UL (1) |
|
$ |
46 |
|
$ |
51 |
|
$ |
56 |
|
$ |
60 |
|
$ |
68 |
|
$ |
131 |
|
$ |
184 |
|
$ |
22 |
|
48 |
% |
$ |
53 |
|
40 |
% |
$ |
8 |
|
13 |
% |
Term and whole life |
|
3 |
|
2 |
|
3 |
|
3 |
|
2 |
|
8 |
|
8 |
|
(1 |
) |
(33 |
)% |
|
|
|
|
(1 |
) |
(33 |
)% | ||||||||||
Disability insurance |
|
2 |
|
1 |
|
1 |
|
2 |
|
1 |
|
5 |
|
4 |
|
(1 |
) |
(50 |
)% |
(1 |
) |
(20 |
)% |
(1 |
) |
(50 |
)% | ||||||||||
Auto and home |
|
199 |
|
186 |
|
197 |
|
200 |
|
217 |
|
570 |
|
614 |
|
18 |
|
9 |
% |
44 |
|
8 |
% |
17 |
|
9 |
% | ||||||||||
Total cash sales |
|
$ |
250 |
|
$ |
240 |
|
$ |
257 |
|
$ |
265 |
|
$ |
288 |
|
$ |
714 |
|
$ |
810 |
|
$ |
38 |
|
15 |
% |
$ |
96 |
|
13 |
% |
$ |
23 |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
VUL / UL Policyholder Account Balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Beginning balance |
|
$ |
9,694 |
|
$ |
8,862 |
|
$ |
9,216 |
|
$ |
9,740 |
|
$ |
9,502 |
|
$ |
9,492 |
|
$ |
9,216 |
|
$ |
(192 |
) |
(2 |
)% |
$ |
(276 |
) |
(3 |
)% |
$ |
(238 |
) |
(2 |
)% |
Premiums and deposits |
|
221 |
|
231 |
|
232 |
|
231 |
|
236 |
|
671 |
|
699 |
|
15 |
|
7 |
% |
28 |
|
4 |
% |
5 |
|
2 |
% | ||||||||||
Investment performance and interest |
|
(784 |
) |
393 |
|
575 |
|
(188 |
) |
307 |
|
(472 |
) |
694 |
|
1,091 |
|
|
# |
1,166 |
|
|
# |
495 |
|
|
# | ||||||||||
Withdrawals and surrenders |
|
(270 |
) |
(269 |
) |
(284 |
) |
(281 |
) |
(285 |
) |
(830 |
) |
(850 |
) |
(15 |
) |
(6 |
)% |
(20 |
) |
(2 |
)% |
(4 |
) |
(1 |
)% | ||||||||||
Other |
|
1 |
|
(1 |
) |
1 |
|
|
|
|
|
1 |
|
1 |
|
(1 |
) |
|
# |
|
|
|
|
|
|
|
| ||||||||||
Total ending balance |
|
$ |
8,862 |
|
$ |
9,216 |
|
$ |
9,740 |
|
$ |
9,502 |
|
$ |
9,760 |
|
$ |
8,862 |
|
$ |
9,760 |
|
$ |
898 |
|
10 |
% |
$ |
898 |
|
10 |
% |
$ |
258 |
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Premiums by Product |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Term and whole life |
|
$ |
13 |
|
$ |
13 |
|
$ |
12 |
|
$ |
13 |
|
$ |
12 |
|
$ |
40 |
|
$ |
37 |
|
$ |
(1 |
) |
(8 |
)% |
$ |
(3 |
) |
(8 |
)% |
$ |
(1 |
) |
(8 |
)% |
Disability insurance |
|
41 |
|
40 |
|
40 |
|
40 |
|
40 |
|
122 |
|
120 |
|
(1 |
) |
(2 |
)% |
(2 |
) |
(2 |
)% |
|
|
|
| ||||||||||
Long term care |
|
29 |
|
31 |
|
28 |
|
29 |
|
29 |
|
87 |
|
86 |
|
|
|
|
|
(1 |
) |
(1 |
)% |
|
|
|
| ||||||||||
Auto and home |
|
184 |
|
188 |
|
189 |
|
192 |
|
198 |
|
539 |
|
579 |
|
14 |
|
8 |
% |
40 |
|
7 |
% |
6 |
|
3 |
% | ||||||||||
Intercompany premiums |
|
4 |
|
4 |
|
4 |
|
4 |
|
4 |
|
12 |
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total premiums by product |
|
$ |
271 |
|
$ |
276 |
|
$ |
273 |
|
$ |
278 |
|
$ |
283 |
|
$ |
800 |
|
$ |
834 |
|
$ |
12 |
|
4 |
% |
$ |
34 |
|
4 |
% |
$ |
5 |
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Auto and Home Insurance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Policy count (thousands) |
|
687 |
|
696 |
|
708 |
|
725 |
|
742 |
|
687 |
|
742 |
|
55 |
|
8 |
% |
55 |
|
8 |
% |
17 |
|
2 |
% | ||||||||||
Loss ratio |
|
94.5 |
% |
81.7 |
% |
80.4 |
% |
85.0 |
% |
82.8 |
% |
90.4 |
% |
82.7 |
% |
(11.7 |
)% |
|
|
(7.7 |
)% |
|
|
(2.2 |
)% |
|
| ||||||||||
Expense ratio |
|
15.5 |
% |
16.4 |
% |
15.5 |
% |
15.0 |
% |
14.8 |
% |
15.4 |
% |
15.1 |
% |
(0.7 |
)% |
|
|
(0.3 |
)% |
|
|
(0.2 |
)% |
|
| ||||||||||
Combined ratio |
|
110.0 |
% |
98.1 |
% |
95.9 |
% |
100.0 |
% |
97.6 |
% |
105.8 |
% |
97.8 |
% |
(12.4 |
)% |
|
|
(8.0 |
)% |
|
|
(2.4 |
)% |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
DAC Rollforward |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Life and Health |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Beginning balance |
|
$ |
837 |
|
$ |
816 |
|
$ |
814 |
|
$ |
809 |
|
$ |
797 |
|
$ |
844 |
|
$ |
814 |
|
$ |
(40 |
) |
(5 |
)% |
$ |
(30 |
) |
(4 |
)% |
$ |
(12 |
) |
(1 |
)% |
Capitalization |
|
17 |
|
18 |
|
16 |
|
18 |
|
17 |
|
51 |
|
51 |
|
|
|
|
|
|
|
|
|
(1 |
) |
(6 |
)% | ||||||||||
Amortization per income statement |
|
(21 |
) |
(19 |
) |
(19 |
) |
(21 |
) |
(6 |
) |
(58 |
) |
(46 |
) |
15 |
|
71 |
% |
12 |
|
21 |
% |
15 |
|
71 |
% | ||||||||||
Other |
|
(17 |
) |
(1 |
) |
(2 |
) |
(9 |
) |
(15 |
) |
(21 |
) |
(26 |
) |
2 |
|
12 |
% |
(5 |
) |
(24 |
)% |
(6 |
) |
(67 |
)% | ||||||||||
Total ending balance |
|
$ |
816 |
|
$ |
814 |
|
$ |
809 |
|
$ |
797 |
|
$ |
793 |
|
$ |
816 |
|
$ |
793 |
|
$ |
(23 |
) |
(3 |
)% |
$ |
(23 |
) |
(3 |
)% |
$ |
(4 |
) |
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Life Insurance in Force |
|
$ |
191,429 |
|
$ |
191,262 |
|
$ |
190,872 |
|
$ |
190,746 |
|
$ |
190,862 |
|
$ |
191,429 |
|
$ |
190,862 |
|
$ |
(567 |
) |
|
|
$ |
(567 |
) |
|
|
$ |
116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Net Amount at Risk |
|
$ |
46,758 |
|
$ |
45,544 |
|
$ |
44,360 |
|
$ |
43,874 |
|
$ |
43,077 |
|
$ |
46,758 |
|
$ |
43,077 |
|
$ |
(3,681 |
) |
(8 |
)% |
$ |
(3,681 |
) |
(8 |
)% |
$ |
(797 |
) |
(2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Net Policyholder Reserves |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
VUL / UL |
|
$ |
7,928 |
|
$ |
8,290 |
|
$ |
8,818 |
|
$ |
8,577 |
|
$ |
8,840 |
|
$ |
7,928 |
|
$ |
8,840 |
|
$ |
912 |
|
12 |
% |
$ |
912 |
|
12 |
% |
$ |
263 |
|
3 |
% |
Term and whole life |
|
236 |
|
237 |
|
236 |
|
235 |
|
233 |
|
236 |
|
233 |
|
(3 |
) |
(1 |
)% |
(3 |
) |
(1 |
)% |
(2 |
) |
(1 |
)% | ||||||||||
Disability insurance |
|
519 |
|
521 |
|
525 |
|
526 |
|
527 |
|
519 |
|
527 |
|
8 |
|
2 |
% |
8 |
|
2 |
% |
1 |
|
|
| ||||||||||
Long term care and other |
|
2,548 |
|
2,569 |
|
2,590 |
|
2,557 |
|
2,581 |
|
2,548 |
|
2,581 |
|
33 |
|
1 |
% |
33 |
|
1 |
% |
24 |
|
1 |
% | ||||||||||
Auto and home loss and LAE reserves |
|
350 |
|
350 |
|
344 |
|
345 |
|
339 |
|
350 |
|
339 |
|
(11 |
) |
(3 |
)% |
(11 |
) |
(3 |
)% |
(6 |
) |
(2 |
)% | ||||||||||
Total net policyholder reserves |
|
$ |
11,581 |
|
$ |
11,967 |
|
$ |
12,513 |
|
$ |
12,240 |
|
$ |
12,520 |
|
$ |
11,581 |
|
$ |
12,520 |
|
$ |
939 |
|
8 |
% |
$ |
939 |
|
8 |
% |
$ |
280 |
|
2 |
% |
(1) Includes lump sum deposits.
# Variance of greater than 100%.
Ameriprise Financial, Inc.
Corporate & Other Segment
Third Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Year Comparisons |
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
Qtr Chg - 3Q |
|
YTD Chg - 3Q |
|
Seq Qtr Chg - 3Q |
| ||||||||||||||||||
(in millions unless otherwise noted, unaudited) |
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
2011 |
|
2012 |
|
Diff. |
|
% |
|
Diff. |
|
% |
|
Diff. |
|
% |
| ||||||||||
Operating Income Statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Management and financial advice fees |
|
$ |
|
|
$ |
(1 |
) |
$ |
|
|
$ |
|
|
$ |
(1 |
) |
$ |
|
|
$ |
(1 |
) |
$ |
(1 |
) |
|
|
$ |
(1 |
) |
|
|
$ |
(1 |
) |
|
|
Distribution fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Net investment income |
|
(7 |
) |
(7 |
) |
4 |
|
4 |
|
5 |
|
(20 |
) |
13 |
|
12 |
|
|
# |
33 |
|
|
# |
1 |
|
25 |
% | ||||||||||
Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Other revenues |
|
|
|
1 |
|
4 |
|
3 |
|
1 |
|
29 |
|
8 |
|
1 |
|
|
|
(21 |
) |
(72 |
)% |
(2 |
) |
(67 |
)% | ||||||||||
Total revenues |
|
(7 |
) |
(7 |
) |
8 |
|
7 |
|
5 |
|
9 |
|
20 |
|
12 |
|
|
# |
11 |
|
|
# |
(2 |
) |
(29 |
)% | ||||||||||
Banking and deposit interest expense |
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Operating total net revenues |
|
(7 |
) |
(6 |
) |
8 |
|
7 |
|
5 |
|
9 |
|
20 |
|
12 |
|
|
# |
11 |
|
|
# |
(2 |
) |
(29 |
)% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Distribution expenses |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
(1 |
) |
|
# |
|
|
|
| ||||||||||
Interest credited to fixed accounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Benefits, claims, losses and settlement expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Amortization of deferred acquisition costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Interest and debt expense |
|
23 |
|
23 |
|
22 |
|
24 |
|
24 |
|
72 |
|
70 |
|
1 |
|
4 |
% |
(2 |
) |
(3 |
)% |
|
|
|
| ||||||||||
General and administrative expense |
|
30 |
|
46 |
|
51 |
|
50 |
|
38 |
|
102 |
|
139 |
|
8 |
|
27 |
% |
37 |
|
36 |
% |
(12 |
) |
(24 |
)% | ||||||||||
Operating expenses |
|
53 |
|
69 |
|
73 |
|
74 |
|
62 |
|
175 |
|
209 |
|
9 |
|
17 |
% |
34 |
|
19 |
% |
(12 |
) |
(16 |
)% | ||||||||||
Pretax operating loss |
|
$ |
(60 |
) |
$ |
(75 |
) |
$ |
(65 |
) |
$ |
(67 |
) |
$ |
(57 |
) |
$ |
(166 |
) |
$ |
(189 |
) |
$ |
3 |
|
5 |
% |
$ |
(23 |
) |
(14 |
)% |
$ |
10 |
|
15 |
% |
# Variance of greater than 100%.
Ameriprise Financial, Inc.
Eliminations (1)
Third Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Year Comparisons |
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
Qtr Chg - 3Q |
|
YTD Chg - 3Q |
|
Seq Qtr Chg - 3Q |
| ||||||||||||||||||
(in millions unless otherwise noted, unaudited) |
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
2011 |
|
2012 |
|
Diff. |
|
% |
|
Diff. |
|
% |
|
Diff. |
|
% |
| ||||||||||
Operating Income Statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Management and financial advice fees |
|
$ |
(29 |
) |
$ |
(29 |
) |
$ |
(30 |
) |
$ |
(32 |
) |
$ |
(32 |
) |
$ |
(86 |
) |
$ |
(94 |
) |
$ |
(3 |
) |
(10 |
)% |
$ |
(8 |
) |
(9 |
)% |
$ |
|
|
|
|
Distribution fees |
|
(284 |
) |
(277 |
) |
(279 |
) |
(270 |
) |
(274 |
) |
(856 |
) |
(823 |
) |
10 |
|
4 |
% |
33 |
|
4 |
% |
(4 |
) |
(1 |
)% | ||||||||||
Net investment income |
|
(1 |
) |
|
|
|
|
|
|
|
|
(1 |
) |
|
|
1 |
|
|
# |
1 |
|
|
# |
|
|
|
| ||||||||||
Premiums |
|
(4 |
) |
(5 |
) |
(4 |
) |
(4 |
) |
(4 |
) |
(12 |
) |
(12 |
) |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total revenues |
|
(318 |
) |
(311 |
) |
(313 |
) |
(306 |
) |
(310 |
) |
(955 |
) |
(929 |
) |
8 |
|
3 |
% |
26 |
|
3 |
% |
(4 |
) |
(1 |
)% | ||||||||||
Banking and deposit interest expense |
|
(1 |
) |
(2 |
) |
(1 |
) |
(1 |
) |
|
|
(2 |
) |
(2 |
) |
1 |
|
|
# |
|
|
|
|
1 |
|
|
# | ||||||||||
Operating total net revenues |
|
(317 |
) |
(309 |
) |
(312 |
) |
(305 |
) |
(310 |
) |
(953 |
) |
(927 |
) |
7 |
|
2 |
% |
26 |
|
3 |
% |
(5 |
) |
(2 |
)% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Distribution expenses |
|
(301 |
) |
(295 |
) |
(297 |
) |
(289 |
) |
(295 |
) |
(907 |
) |
(881 |
) |
6 |
|
2 |
% |
26 |
|
3 |
% |
(6 |
) |
(2 |
)% | ||||||||||
Interest credited to fixed accounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Benefits, claims, losses and settlement expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Amortization of deferred acquisition costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Interest and debt expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
General and administrative expense |
|
(16 |
) |
(14 |
) |
(15 |
) |
(16 |
) |
(15 |
) |
(46 |
) |
(46 |
) |
1 |
|
6 |
% |
|
|
|
|
1 |
|
6 |
% | ||||||||||
Operating expenses |
|
(317 |
) |
(309 |
) |
(312 |
) |
(305 |
) |
(310 |
) |
(953 |
) |
(927 |
) |
7 |
|
2 |
% |
26 |
|
3 |
% |
(5 |
) |
(2 |
)% | ||||||||||
Pretax operating earnings |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
|
$ |
|
|
|
|
$ |
|
|
|
|
(1) The majority of the amounts represent the impact of inter-segment transfer pricing for both revenues and expenses.
# Variance of greater than 100%.
Statistical Supplement Package
(unaudited)
Third Quarter 2012
Balance Sheet and Ratings Information
Ameriprise Financial, Inc.
Consolidated Balance Sheets
Third Quarter 2012
(in millions, unaudited) |
|
September 30, 2011 |
|
December 31, 2011 |
|
March 31, 2012 |
|
June 30, 2012 |
|
September 30, 2012 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Assets |
|
|
|
|
|
|
|
|
|
|
| |||||
Cash and cash equivalents |
|
$ |
2,664 |
|
$ |
2,781 |
|
$ |
2,312 |
|
$ |
2,721 |
|
$ |
3,325 |
|
Cash of consolidated investment entities |
|
429 |
|
470 |
|
562 |
|
551 |
|
607 |
| |||||
Investments |
|
38,295 |
|
38,775 |
|
39,104 |
|
38,874 |
|
38,702 |
| |||||
Investments of consolidated investment entities |
|
5,160 |
|
4,789 |
|
4,815 |
|
4,690 |
|
4,587 |
| |||||
Separate account assets |
|
63,237 |
|
66,780 |
|
71,635 |
|
69,303 |
|
71,919 |
| |||||
Receivables |
|
5,313 |
|
5,559 |
|
5,473 |
|
5,499 |
|
5,528 |
| |||||
Receivables of consolidated investment entities |
|
51 |
|
59 |
|
43 |
|
38 |
|
56 |
| |||||
Deferred acquisition costs |
|
2,390 |
|
2,440 |
|
2,472 |
|
2,431 |
|
2,397 |
| |||||
Restricted and segregated cash and investments |
|
1,673 |
|
1,793 |
|
1,875 |
|
1,763 |
|
2,060 |
| |||||
Other assets |
|
8,117 |
|
7,751 |
|
7,429 |
|
8,319 |
|
8,224 |
| |||||
Other assets of consolidated investment entities |
|
1,171 |
|
1,110 |
|
1,037 |
|
1,081 |
|
1,159 |
| |||||
Assets held for sale |
|
165 |
|
|
|
|
|
|
|
|
| |||||
Total Assets |
|
$ |
128,665 |
|
$ |
132,307 |
|
$ |
136,757 |
|
$ |
135,270 |
|
$ |
138,564 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
| |||||
Future policy benefits and claims |
|
$ |
31,631 |
|
$ |
31,710 |
|
$ |
30,994 |
|
$ |
31,675 |
|
$ |
31,595 |
|
Separate account liabilities |
|
63,237 |
|
66,780 |
|
71,635 |
|
69,303 |
|
71,919 |
| |||||
Customer deposits |
|
9,624 |
|
9,850 |
|
9,961 |
|
10,079 |
|
10,048 |
| |||||
Short-term borrowings |
|
504 |
|
504 |
|
504 |
|
498 |
|
500 |
| |||||
Long-term debt |
|
2,404 |
|
2,393 |
|
2,381 |
|
2,403 |
|
2,413 |
| |||||
Debt of consolidated investment entities |
|
5,529 |
|
5,178 |
|
5,231 |
|
5,213 |
|
5,221 |
| |||||
Accounts payable and accrued expenses |
|
1,005 |
|
1,048 |
|
887 |
|
978 |
|
1,145 |
| |||||
Accounts payable and accrued expenses of consolidated investment entities |
|
25 |
|
17 |
|
20 |
|
24 |
|
25 |
| |||||
Other liabilities |
|
4,747 |
|
5,033 |
|
5,272 |
|
5,376 |
|
5,779 |
| |||||
Other liabilities of consolidated investment entities |
|
162 |
|
100 |
|
123 |
|
108 |
|
98 |
| |||||
Liabilities held for sale |
|
60 |
|
|
|
|
|
|
|
|
| |||||
Total Liabilities |
|
118,928 |
|
122,613 |
|
127,008 |
|
125,657 |
|
128,743 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Equity |
|
|
|
|
|
|
|
|
|
|
| |||||
Ameriprise Financial |
|
|
|
|
|
|
|
|
|
|
| |||||
Common shares ($.01 par) |
|
3 |
|
3 |
|
3 |
|
3 |
|
3 |
| |||||
Additional paid-in capital |
|
6,182 |
|
6,237 |
|
6,237 |
|
6,287 |
|
6,363 |
| |||||
Retained earnings |
|
5,479 |
|
5,603 |
|
5,845 |
|
5,990 |
|
6,087 |
| |||||
Appropriated retained earnings of consolidated investment entities |
|
380 |
|
428 |
|
440 |
|
394 |
|
390 |
| |||||
Treasury stock |
|
(3,772 |
) |
(4,034 |
) |
(4,261 |
) |
(4,611 |
) |
(4,953 |
) | |||||
Accumulated other comprehensive income, net of tax |
|
749 |
|
751 |
|
851 |
|
942 |
|
1,267 |
| |||||
Total Ameriprise Financial Shareholders Equity |
|
9,021 |
|
8,988 |
|
9,115 |
|
9,005 |
|
9,157 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Noncontrolling interests |
|
716 |
|
706 |
|
634 |
|
608 |
|
664 |
| |||||
Total Equity |
|
9,737 |
|
9,694 |
|
9,749 |
|
9,613 |
|
9,821 |
| |||||
Total Liabilities and Equity |
|
$ |
128,665 |
|
$ |
132,307 |
|
$ |
136,757 |
|
$ |
135,270 |
|
$ |
138,564 |
|
Ameriprise Financial, Inc.
Capital and Ratings Information
Third Quarter 2012
(in millions unless otherwise noted, unaudited) |
|
September 30, 2011 |
|
December 31, 2011 |
|
March 31, 2012 |
|
June 30, 2012 |
|
September 30, 2012 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Long-term Debt Summary |
|
|
|
|
|
|
|
|
|
|
| |||||
Senior notes |
|
$ |
2,098 |
|
$ |
2,099 |
|
$ |
2,087 |
|
$ |
2,109 |
|
$ |
2,119 |
|
Junior subordinated notes |
|
306 |
|
294 |
|
294 |
|
294 |
|
294 |
| |||||
Total Ameriprise Financial long-term debt |
|
2,404 |
|
2,393 |
|
2,381 |
|
2,403 |
|
2,413 |
| |||||
Non-recourse debt of consolidated investment entities |
|
5,529 |
|
5,178 |
|
5,231 |
|
5,213 |
|
5,221 |
| |||||
Total long-term debt |
|
$ |
7,933 |
|
$ |
7,571 |
|
$ |
7,612 |
|
$ |
7,616 |
|
$ |
7,634 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Ameriprise Financial long-term debt |
|
$ |
2,404 |
|
$ |
2,393 |
|
$ |
2,381 |
|
$ |
2,403 |
|
$ |
2,413 |
|
Fair value of hedges and unamortized discount |
|
(148 |
) |
(149 |
) |
(137 |
) |
(159 |
) |
(169 |
) | |||||
Total Ameriprise Financial long-term debt excluding fair value of hedges and unamortized discount (1) |
|
$ |
2,256 |
|
$ |
2,244 |
|
$ |
2,244 |
|
$ |
2,244 |
|
$ |
2,244 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total equity (3) |
|
$ |
9,737 |
|
$ |
9,694 |
|
$ |
9,749 |
|
$ |
9,613 |
|
$ |
9,821 |
|
Noncontrolling interests |
|
(716 |
) |
(706 |
) |
(634 |
) |
(608 |
) |
(664 |
) | |||||
Total Ameriprise Financial shareholders equity |
|
9,021 |
|
8,988 |
|
9,115 |
|
9,005 |
|
9,157 |
| |||||
Assets and liabilities held for sale |
|
(105 |
) |
|
|
|
|
|
|
|
| |||||
Equity of consolidated investment entities |
|
(347 |
) |
(402 |
) |
(413 |
) |
(370 |
) |
(365 |
) | |||||
Total Ameriprise Financial shareholders equity from continuing operations excluding CIEs (1) |
|
$ |
8,569 |
|
$ |
8,586 |
|
$ |
8,702 |
|
$ |
8,635 |
|
$ |
8,792 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Ameriprise Financial capital |
|
$ |
11,425 |
|
$ |
11,381 |
|
$ |
11,496 |
|
$ |
11,408 |
|
$ |
11,570 |
|
Total Ameriprise Financial capital from continuing operations excluding fair value of hedges, unamortized discount and equity of CIEs (1) |
|
$ |
10,825 |
|
$ |
10,830 |
|
$ |
10,946 |
|
$ |
10,879 |
|
$ |
11,036 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Debt to capital |
|
|
|
|
|
|
|
|
|
|
| |||||
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital |
|
21.0 |
% |
21.0 |
% |
20.7 |
% |
21.1 |
% |
20.9 |
% | |||||
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital from continuing operations excluding fair value of hedges, unamortized discount and equity of CIEs (1) |
|
20.8 |
% |
20.7 |
% |
20.5 |
% |
20.6 |
% |
20.3 |
% |
Ratings (as of September 30, 2012 earnings release date) |
|
A.M. Best |
|
Standard & Poors Rating |
|
Moodys Investors |
|
Fitch Ratings |
|
Claims Paying Ratings (2) |
|
|
|
|
|
|
|
|
|
RiverSource Life Insurance Company |
|
A+ |
|
AA- |
|
Aa3 |
|
AA- |
|
IDS Property Casualty Ins. Company |
|
A |
|
N/R |
|
N/R |
|
N/R |
|
|
|
|
|
|
|
|
|
|
|
Debt Ratings (2) |
|
|
|
|
|
|
|
|
|
Ameriprise Financial, Inc. |
|
a- |
|
A |
|
A3 |
|
A- |
|
(1) See non-GAAP financial information on pg 34. Non-GAAP financial measure reconciliations can be found on page 45.
(2) For the most current ratings information, please see the individual rating agencys website.
(3) Includes accumulated other comprehensive income, net of tax.
N/R - Not Rated.
Ameriprise Financial, Inc.
Ameriprise Financial Investments (1)
Third Quarter 2012
(in millions unless otherwise noted, unaudited) |
|
September 30, 2011 |
|
December 31, 2011 |
|
March 31, 2012 |
|
June 30, 2012 |
|
September 30, 2012 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Cash and cash equivalents |
|
$ |
2,664 |
|
$ |
2,781 |
|
$ |
2,312 |
|
$ |
2,721 |
|
$ |
3,325 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Investments - Ending Balances |
|
|
|
|
|
|
|
|
|
|
| |||||
Available-for-Sale Securities |
|
|
|
|
|
|
|
|
|
|
| |||||
Corporate debt securities |
|
17,343 |
|
18,040 |
|
18,393 |
|
18,425 |
|
18,787 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Residential mortgage backed securities |
|
7,433 |
|
7,396 |
|
7,358 |
|
7,234 |
|
6,940 |
| |||||
Commercial mortgage backed securities |
|
4,885 |
|
4,719 |
|
4,584 |
|
4,442 |
|
4,270 |
| |||||
Asset backed securities |
|
2,034 |
|
1,985 |
|
2,056 |
|
2,015 |
|
1,904 |
| |||||
Total mortgage and other asset backed securities |
|
14,352 |
|
14,100 |
|
13,998 |
|
13,691 |
|
13,114 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
State and municipal obligations |
|
2,083 |
|
2,130 |
|
2,113 |
|
2,172 |
|
2,229 |
| |||||
US government and agencies obligations |
|
73 |
|
71 |
|
68 |
|
68 |
|
61 |
| |||||
Foreign government bonds and obligations |
|
127 |
|
144 |
|
205 |
|
216 |
|
223 |
| |||||
Common and preferred stocks |
|
8 |
|
9 |
|
11 |
|
10 |
|
11 |
| |||||
Other AFS |
|
26 |
|
11 |
|
17 |
|
8 |
|
|
| |||||
Total other |
|
2,317 |
|
2,365 |
|
2,414 |
|
2,474 |
|
2,524 |
| |||||
Total available-for-sale securities |
|
34,012 |
|
34,505 |
|
34,805 |
|
34,590 |
|
34,425 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Commercial mortgage loans |
|
2,555 |
|
2,624 |
|
2,650 |
|
2,584 |
|
2,570 |
| |||||
Allowance for loan losses |
|
(35 |
) |
(35 |
) |
(35 |
) |
(33 |
) |
(29 |
) | |||||
Commercial mortgage loans, net |
|
2,520 |
|
2,589 |
|
2,615 |
|
2,551 |
|
2,541 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Policy loans |
|
741 |
|
742 |
|
741 |
|
750 |
|
752 |
| |||||
Other investments |
|
1,022 |
|
939 |
|
943 |
|
983 |
|
984 |
| |||||
Total investments |
|
38,295 |
|
38,775 |
|
39,104 |
|
38,874 |
|
38,702 |
| |||||
Total cash, cash equivalents and investments |
|
$ |
40,959 |
|
$ |
41,556 |
|
$ |
41,416 |
|
$ |
41,595 |
|
$ |
42,027 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net unrealized gain Available-for-Sale Securities |
|
$ |
2,006 |
|
$ |
2,058 |
|
$ |
2,187 |
|
$ |
2,434 |
|
$ |
3,092 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
AFS Fixed Maturity Asset Quality - % |
|
|
|
|
|
|
|
|
|
|
| |||||
AAA |
|
37 |
% |
35 |
% |
34 |
% |
33 |
% |
32 |
% | |||||
AA |
|
6 |
% |
6 |
% |
6 |
% |
6 |
% |
6 |
% | |||||
AFS securities AA and above |
|
43 |
% |
41 |
% |
40 |
% |
39 |
% |
38 |
% | |||||
A |
|
16 |
% |
16 |
% |
17 |
% |
18 |
% |
18 |
% | |||||
BBB |
|
36 |
% |
38 |
% |
38 |
% |
38 |
% |
39 |
% | |||||
Below investment grade |
|
5 |
% |
5 |
% |
5 |
% |
5 |
% |
5 |
% | |||||
Total AFS fixed maturity asset quality - % |
|
100 |
% |
100 |
% |
100 |
% |
100 |
% |
100 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fair Value of Below Investment Grade Investments as a % of Total Cash and Investments |
|
5 |
% |
5 |
% |
5 |
% |
5 |
% |
5 |
% |
(1) Investments excluding investments of CIEs.
Ameriprise Financial, Inc.
Non-GAAP Financial Information
Ameriprise Financial, Inc. (the Company) prepares its financial statements in accordance with 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. Management believes that the presentation of these non-GAAP financial measures best reflect the underlying performance of the Company and facilitate 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 6, 15, 44 and 45.
These non-GAAP measures include:
· Adjusted net pretax operating margin;
· Adjusted operating earnings;
· Adjusted operating revenues;
· Ameriprise Financial shareholders equity from continuing operations excluding AOCI;
· Ameriprise Financial shareholders equity from continuing operations excluding CIEs;
· Ameriprise Financial shareholders equity from continuing operations excluding CIEs and AOCI;
· Basic operating earnings per share;
· Effective tax rate excluding noncontrolling interests;
· Operating earnings;
· Operating earnings per diluted share;
· Operating effective tax rate;
· Operating return on equity excluding AOCI;
· Operating total net revenues;
· Pretax operating earnings;
· Pretax operating margin;
· Return on equity excluding AOCI;
· Total Ameriprise Financial capital from continuing operations excluding fair value of hedges, unamortized discount and equity of CIEs;
· Total Ameriprise Financial long-term debt excluding fair value of hedges and unamortized discount;
· Total Ameriprise Financial long-term debt to total Ameriprise Financial capital from continuing operations excluding fair value of hedges, unamortized discount and equity of CIEs
Reclassification
Certain prior period information has been restated to conform to current period presentation.
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. Ameriprise financial advisors utilize a diversified selection of both affiliated and non-affiliated 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 invested assets primarily from certificate and banking products. This segment earns revenues (distribution fees) for distributing non-affiliated products and earns intersegment revenues (distribution fees) for distributing our affiliated 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 Advisers, LLC (Columbia) predominantly provides U.S. domestic products and services and Threadneedle Asset Management Holdings Sàrl (Threadneedle) predominantly provides international investment products and services. Columbia retail products are distributed through our Advice & Wealth Management segment and also through unaffiliated third party financial institutions, including distribution through Bank of America and its affiliates. Institutional products and services are primarily sold through our institutional sales force. Threadneedle retail products are primarily distributed through third parties. Retail products include mutual funds and variable product funds underlying insurance and annuity separate accounts. Institutional asset management services are designed to meet specific client objectives and may involve a range of products including those that focus on traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective 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. In addition to the products and services provided to third party clients, management teams serving our Asset Management segment provide all intercompany asset management services. The fees for all such services are reflected within the Asset Management segment results through intersegment transfer pricing. 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. Our variable annuity products are distributed through affiliated financial advisors. Our fixed annuity products are distributed through affiliated advisors as well as unaffiliated advisors 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 invested 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 invested 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 certain 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 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 Ameriprise 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 we receive to assume insurance-related risk. We earn net investment income on invested 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 certain 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.
Ameriprise Financial, Inc.
Glossary of Selected Terminology
Adjusted Net Pretax Operating Margin - An internal measure designed to calculate operating margins similar to how asset management companies define operating margins. A ratio representing adjusted operating earnings as a percentage of adjusted operating revenues for the asset management segment.
Adjusted Operating Earnings - Asset management segment pretax operating earnings less operating net investment income plus amortization of intangibles.
Adjusted Operating Revenues - Asset management segment operating total net revenues less pass through distribution revenue and subadvisory and other pass through revenues.
Affiliated General Account Assets - Balance sheet assets from various affiliates managed and reported by Columbia.
Allocated Equity - The internal allocation of consolidated Ameriprise Financial shareholders equity, excluding accumulated other comprehensive income (loss), CIEs, and the net of assets and liabilities held for sale is based on managements best estimate of capital required by the business, and may include capital for contingencies. 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. Allocated equity is not adjusted for non-operating items except for CIEs and the net of assets and liabilities held for sale.
Alternative Assets - Assets reported by the Company that include Hedge Funds and Collateralized Debt Obligations (CDO).
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.
Assets Under Administration - Assets under administration 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 generally record fees received from administered assets as distribution fees. 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. Assets under administration also 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-affiliated funds held in the separate accounts of our life insurance subsidiaries. These assets do not include assets under advisement, for which we provide model portfolios but do not have full discretionary investment authority.
Assets Under Management - Assets under management include assets for which we provide investment management services, such as the assets of the Columbia funds and Threadneedle funds, assets of institutional clients, and client assets held in wrap and personal trust accounts as well as assets managed by sub-advisors selected by us. Assets under management also include certain assets on our Consolidated Balance Sheets for which we provide investment management services and recognize management fees in our Asset Management segment, such as the assets of the general account, RiverSource Variable Product funds held in the separate accounts of our life insurance subsidiaries, client assets of CIEs, and bank deposits. These assets do not include assets under advisement, for which we provide model portfolios, but do not have full discretionary investment authority.
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).
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 or premiums in force (but doesnt need to result in time of sale revenue), or activity that doesnt 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.
Deferred Acquisition Costs and Amortization - Deferred acquisition costs (DAC) represent the direct costs of acquiring new protection and annuity contracts, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of life, disability income, long term care, auto, and home insurance and annuities. DAC also includes deferred direct sales commissions on certain mutual fund products. These costs are deferred to the extent they are directly related to the acquisition of new business and are recoverable from future profits.
Life Insurance in Force - The total amount of all life insurance death benefits currently insured by our company.
Market Impact on Variable Annuity Guaranteed Living Benefits - The impact of changes in financial market conditions on benefit costs associated with variable annuity guaranteed living benefits accounted for as embedded derivatives, net of changes in associated economic hedge values and net of related impacts on DAC and DSIC amortization. This market impact includes the risk margin and nonperformance spread impact.
Net Amount at Risk - Life insurance in force less policyholder reserves net of reinsurance.
Net Flows - Sales less redemptions and miscellaneous flows which may include reinvested dividends.
Net New Flows - Mutual or VP/VIT fund inflows less outflows.
Operating Earnings - Net income attributable to Ameriprise Financial less integration/restructuring charges, net of tax, market impact on variable annuity guaranteed living benefits, net of tax, income (loss) from discontinued operations, net of tax and realized gains, net of tax, plus realized losses, net of tax.
Operating Expenses - Total expenses less integration/restructuring charges, market impact on variable annuity guaranteed living benefits and expense from consolidated investment entities.
Operating Net Investment Income - Net investment income minus net realized gains (losses) and net investment income from consolidated investment entities.
Operating Return on Allocated Equity - Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.
Operating Total Net Revenues - Total net revenues less realized gains plus realized losses less revenue from consolidated investment entities and integration/restructuring.
Pretax Operating Earnings - Income from continuing operations before income tax provision plus or minus net realized gains (losses) plus integration/restructuring charges plus market impact on variable annuity guaranteed living benefits minus pretax income (loss) from consolidated investment entities.
Pretax Operating Margin - A ratio representing pretax operating earnings as a percentage of operating total net revenues.
Pretax Income (Loss) Margin - A ratio representing pretax income (loss) as a percentage of total net revenues.
Risk Margin and Nonperformance Spread Impact - The portion of the market impact on variable annuity guaranteed living benefits related to liability valuation adjustments made in accordance with Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value Measurements and Disclosures (ASC 820) that management considers to be non-economic, including the impact of discounting projected benefits at a rate reflecting a current estimate of RiverSource Lifes nonperformance spread.
Separate Account - Represents 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 annuity 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.
Threadneedle - Threadneedle Asset Management Holdings Sarl is a holding company for the London-based Threadneedle companies, which provide investment management products and services.
Total Ameriprise Financial Capital - Total Ameriprise Financial shareholders equity plus total Ameriprise Financial long-term debt. Total Ameriprise Financial capital is also presented from continuing operations excluding fair value of hedges, unamortized discount and equity of CIEs.
Total Ameriprise Financial Long-term Debt to Total Ameriprise Financial Capital Ratio - A ratio comprised of total Ameriprise Financial long-term debt divided by Ameriprise Financial capital. We also present total Ameriprise Financial long-term debt to total Ameriprise Financial capital from continuing operations ratios excluding fair value of hedges, unamortized discount and equity of consolidated investment entities.
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 affiliated and non-affiliated 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 Advisers, 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.
Ameriprise Financial, Inc.
Disclosed Items
3 Qtr 2012
Excluded from Operating Earnings
|
|
Advice & Wealth |
|
Annuities |
|
Protection |
|
Corporate and Eliminations |
| |||||||||||||
|
|
|
|
|
|
Market Impact on |
|
|
|
|
|
|
|
|
| |||||||
|
|
Securities |
|
Securities |
|
VA Guaranteed |
|
Securities |
|
Securities |
|
|
|
Restructuring |
| |||||||
(in millions, unaudited) |
|
Gains/(Losses) (1) |
|
Gains/(Losses) (1) |
|
Living Benefits (2)(8) |
|
Gains/(Losses) (1) |
|
Gains/(Losses) (1) |
|
CIEs (3) |
|
Charges (4) |
| |||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Management and financial advice fees |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
(11 |
) |
$ |
|
|
Distribution fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net investment income |
|
(67 |
) |
1 |
|
|
|
(1 |
) |
(1 |
) |
43 |
|
(7 |
) | |||||||
Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Other revenues |
|
|
|
|
|
|
|
|
|
|
|
(5 |
) |
|
| |||||||
Total revenues |
|
(67 |
) |
1 |
|
|
|
(1 |
) |
(1 |
) |
27 |
|
(7 |
) | |||||||
Banking and deposit interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
| |||||||
Total net revenues |
|
(67 |
) |
1 |
|
|
|
(1 |
) |
(1 |
) |
27 |
|
(8 |
) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Distribution expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Interest credited to fixed accounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Benefits, claims, losses and settlement expenses |
|
|
|
|
|
117 |
|
|
|
|
|
|
|
|
| |||||||
Amortization of deferred acquisition costs |
|
|
|
|
|
(26 |
) |
|
|
|
|
|
|
|
| |||||||
Interest and debt expense |
|
|
|
|
|
|
|
|
|
|
|
44 |
|
|
| |||||||
General and administrative expense |
|
|
|
|
|
|
|
|
|
|
|
5 |
|
9 |
| |||||||
Total expenses |
|
|
|
|
|
91 |
|
|
|
|
|
49 |
|
9 |
| |||||||
Pretax segment income (loss) |
|
(67 |
) |
1 |
|
(91 |
) |
(1 |
) |
(1 |
) |
(22 |
) |
(17 |
) | |||||||
Less: Net income (loss) attributable to noncontrolling interest |
|
|
|
|
|
|
|
|
|
|
|
(22 |
) |
|
| |||||||
Pretax segment gain (loss) attributable to Ameriprise Financial |
|
$ |
(67 |
) |
$ |
1 |
|
$ |
(91 |
) |
$ |
(1 |
) |
$ |
(1 |
) |
$ |
|
|
$ |
(17 |
) |
Included in Operating Earnings
|
|
Asset Management |
|
Annuities |
|
Protection |
| |||||||||
|
|
Hedge Fund |
|
Market |
|
Valuation |
|
Market |
|
Valuation |
| |||||
|
|
Redemption |
|
Impacts |
|
Assumptions & |
|
Impacts |
|
Assumptions & |
| |||||
(in millions, unaudited) |
|
Performance Fees (5) |
|
to DAC/DSIC (6) |
|
Model Changes (7)(8) |
|
to DAC/DSIC (6) |
|
Model Changes (7) |
| |||||
Revenues |
|
|
|
|
|
|
|
|
|
|
| |||||
Management and financial advice fees |
|
$ |
* |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Distribution fees |
|
|
|
|
|
|
|
|
|
|
| |||||
Net investment income |
|
|
|
|
|
|
|
|
|
|
| |||||
Premiums |
|
|
|
|
|
|
|
|
|
|
| |||||
Other revenues |
|
|
|
|
|
|
|
|
|
(41 |
) | |||||
Total revenues |
|
|
|
|
|
|
|
|
|
(41 |
) | |||||
Banking and deposit interest expense |
|
|
|
|
|
|
|
|
|
|
| |||||
Operating total net revenues |
|
|
|
|
|
|
|
|
|
(41 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Expenses |
|
|
|
|
|
|
|
|
|
|
| |||||
Distribution expenses |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest credited to fixed accounts |
|
|
|
|
|
|
|
|
|
|
| |||||
Benefits, claims, losses and settlement expenses |
|
|
|
(3 |
) |
32 |
|
|
|
(14 |
) | |||||
Amortization of deferred acquisition costs |
|
|
|
(11 |
) |
28 |
|
(1 |
) |
(14 |
) | |||||
Interest and debt expense |
|
|
|
|
|
|
|
|
|
|
| |||||
General and administrative expense |
|
* |
|
|
|
|
|
|
|
|
| |||||
Operating expenses |
|
|
|
(14 |
) |
60 |
|
(1 |
) |
(28 |
) | |||||
Pretax operating earnings |
|
$ |
7 |
|
$ |
14 |
|
$ |
(60 |
) |
$ |
1 |
|
$ |
(13 |
) |
(1) Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities
(2) Variable annuity guaranteed living benefit impacts include:
$123 million net expense related to hedged variable annuity living benefits
$32 million decrease in DAC and DSIC amortization resulting from hedged living benefits
(3) Reflects revenues and expenses of Consolidated Investment Entities
(4) Non-recurring restructuring charges related to exiting the banking business
(5) The Company has chosen not to disclose the gross revenue and expense amounts for competitive reasons, but instead has shown the net impact on pretax operating earnings
(6) Decrease in DAC and DSIC amortization from higher than projected separate account growth
(7) Net pretax impact of annual review/updating of valuation assumptions and model changes
(8) $10 million expense attributable to annual review/updating of valuation assumptions and model changes is excluded from operating earnings and disclosed as part of the Market Impact on VA Guaranteed Living Benefits
Ameriprise Financial, Inc.
Disclosed Items
2 Qtr 2012
Excluded from Operating Earnings
|
|
Advice & Wealth |
|
Asset Management |
|
Annuities |
|
Protection |
|
Corporate and Eliminations |
| ||||||||||||||
|
|
|
|
|
|
|
|
Market Impact on |
|
|
|
|
|
|
|
|
| ||||||||
|
|
Securities |
|
Integration |
|
Securities |
|
VA Guaranteed |
|
Securities |
|
Securities |
|
|
|
Restructuring |
| ||||||||
(in millions, unaudited) |
|
Gains/(Losses) (1) |
|
Charges (2) |
|
Gains/(Losses) (1) |
|
Living Benefits (3) |
|
Gains/(Losses) (1) |
|
Gains/(Losses) (1) |
|
CIEs (4) |
|
Charges (5) |
| ||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Management and financial advice fees |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
(10 |
) |
$ |
|
|
Distribution fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Net investment income |
|
(4 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
2 |
|
14 |
|
|
| ||||||||
Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
(3 |
) |
|
| ||||||||
Total revenues |
|
(4 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
2 |
|
1 |
|
|
| ||||||||
Banking and deposit interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total net revenues |
|
(4 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
2 |
|
1 |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Distribution expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest credited to fixed accounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Benefits, claims, losses and settlement expenses |
|
|
|
|
|
|
|
11 |
|
|
|
|
|
|
|
|
| ||||||||
Amortization of deferred acquisition costs |
|
|
|
|
|
|
|
5 |
|
|
|
|
|
|
|
|
| ||||||||
Interest and debt expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
48 |
|
|
| ||||||||
General and administrative expense |
|
|
|
22 |
|
|
|
|
|
|
|
|
|
6 |
|
4 |
| ||||||||
Total expenses |
|
|
|
22 |
|
|
|
16 |
|
|
|
|
|
54 |
|
4 |
| ||||||||
Pretax segment income (loss) |
|
(4 |
) |
(22 |
) |
(2 |
) |
(16 |
) |
(1 |
) |
2 |
|
(53 |
) |
(4 |
) | ||||||||
Less: Net income (loss) attributable to noncontrolling interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
(53 |
) |
|
| ||||||||
Pretax segment gain (loss) attributable to Ameriprise Financial |
|
$ |
(4 |
) |
$ |
(22 |
) |
$ |
(2 |
) |
$ |
(16 |
) |
$ |
(1 |
) |
$ |
2 |
|
$ |
|
|
$ |
(4 |
) |
Included in Operating Earnings
|
|
Annuities |
|
Protection |
|
Consolidated |
| |||||||||||||||
|
|
|
|
|
|
Market |
|
|
|
Market |
|
Auto & Home |
|
|
| |||||||
|
|
Guaranty Fund |
|
Valuation |
|
Impacts |
|
Reserve |
|
Impacts |
|
Catastrophe |
|
Net Tax- |
| |||||||
(in millions, unaudited) |
|
Assessments (6) |
|
Model Updates (7) |
|
to DAC/DSIC (8) |
|
Release (9) |
|
to DAC/DSIC (8) |
|
Losses (10) |
|
Related Item (11) |
| |||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Management and financial advice fees |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Distribution fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Banking and deposit interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Operating total net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Distribution expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Interest credited to fixed accounts |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
| |||||||
Benefits, claims, losses and settlement expenses |
|
|
|
12 |
|
3 |
|
(9 |
) |
|
|
8 |
|
|
| |||||||
Amortization of deferred acquisition costs |
|
|
|
|
|
8 |
|
|
|
1 |
|
|
|
|
| |||||||
Interest and debt expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
General and administrative expense |
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Operating expenses |
|
6 |
|
14 |
|
11 |
|
(9 |
) |
1 |
|
8 |
|
|
| |||||||
Pretax operating earnings |
|
$ |
(6 |
) |
$ |
(14 |
) |
$ |
(11 |
) |
$ |
9 |
|
$ |
(1 |
) |
$ |
(8 |
) |
$ |
|
|
Net tax-related item |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
40 |
|
(1) Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities
(2) Non-recurring integration charges related to Columbia Management acquisition
(3) Variable annuity guaranteed living benefit impacts include:
$9 million net expense related to hedged variable annuity living benefits
$7 million increase in DAC and DSIC amortization resulting from hedged living benefits
(4) Reflects revenues and expenses of Consolidated Investment Entities
(5) Non-recurring restructuring charges related to exiting the banking business
(6) Insurance industry guaranty fund assessments, primarily related to Executive Life of NY (unaffiliated)
(7) Revisions to certain calculations in the valuation of our insurance and annuity products
(8) Increase in DAC and DSIC amortization from lower than projected separate account growth
(9) Release of excess life insurance reserve
(10) Above the normal expected level of claims experience due to storms; total catastrophe losses were $17 million for the quarter
(11) Tax-related item related to incomplete data received from a third party service provider for securities lending activities in prior periods
Ameriprise Financial, Inc.
Disclosed Items
1 Qtr 2012
Excluded from Operating Earnings
|
|
Advice & Wealth |
|
Asset Management |
|
Annuities |
|
Corporate and Eliminations |
| ||||||||||
|
|
|
|
|
|
|
|
Market Impact on |
|
|
|
|
| ||||||
|
|
Securities |
|
Integration |
|
Securities |
|
VA Guaranteed |
|
Securities |
|
|
| ||||||
(in millions, unaudited) |
|
Gains/(Losses) (1) |
|
Charges (2) |
|
Gains/(Losses) (1) |
|
Living Benefits (3) |
|
Gains/(Losses) (1) |
|
CIEs (4) |
| ||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Management and financial advice fees |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
(10 |
) |
Distribution fees |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net investment income |
|
(4 |
) |
|
|
1 |
|
|
|
1 |
|
61 |
| ||||||
Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Other revenues |
|
|
|
|
|
|
|
|
|
|
|
1 |
| ||||||
Total revenues |
|
(4 |
) |
|
|
1 |
|
|
|
1 |
|
52 |
| ||||||
Banking and deposit interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total net revenues |
|
(4 |
) |
|
|
1 |
|
|
|
1 |
|
52 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Distribution expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest credited to fixed accounts |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Benefits, claims, losses and settlement expenses |
|
|
|
|
|
|
|
149 |
|
|
|
|
| ||||||
Amortization of deferred acquisition costs |
|
|
|
|
|
|
|
(36 |
) |
|
|
|
| ||||||
Interest and debt expense |
|
|
|
|
|
|
|
|
|
|
|
46 |
| ||||||
General and administrative expense |
|
|
|
23 |
|
|
|
|
|
|
|
2 |
| ||||||
Total expenses |
|
|
|
23 |
|
|
|
113 |
|
|
|
48 |
| ||||||
Pretax segment income (loss) |
|
(4 |
) |
(23 |
) |
1 |
|
(113 |
) |
1 |
|
4 |
| ||||||
Less: Net income (loss) attributable to noncontrolling interest |
|
|
|
|
|
|
|
|
|
|
|
4 |
| ||||||
Pretax segment gain (loss) attributable to Ameriprise Financial |
|
$ |
(4 |
) |
$ |
(23 |
) |
$ |
1 |
|
$ |
(113 |
) |
$ |
1 |
|
$ |
|
|
Included in Operating Earnings
|
|
Asset Management |
|
Annuities |
|
Protection |
| |||||||||
|
|
|
|
Threadneedle |
|
|
|
Market |
|
Market |
| |||||
|
|
Threadneedle |
|
FSA Regulatory |
|
Valuation |
|
Impacts |
|
Impacts |
| |||||
(in millions, unaudited) |
|
Valuation (5) |
|
Levy (6) |
|
Model Updates (7) |
|
to DAC/DSIC (8) |
|
to DAC/DSIC (8) |
| |||||
Revenues |
|
|
|
|
|
|
|
|
|
|
| |||||
Management and financial advice fees |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Distribution fees |
|
|
|
|
|
|
|
|
|
|
| |||||
Net investment income |
|
|
|
|
|
|
|
|
|
|
| |||||
Premiums |
|
|
|
|
|
|
|
|
|
|
| |||||
Other revenues |
|
|
|
|
|
|
|
|
|
|
| |||||
Total revenues |
|
|
|
|
|
|
|
|
|
|
| |||||
Banking and deposit interest expense |
|
|
|
|
|
|
|
|
|
|
| |||||
Operating total net revenues |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Expenses |
|
|
|
|
|
|
|
|
|
|
| |||||
Distribution expenses |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest credited to fixed accounts |
|
|
|
|
|
|
|
|
|
|
| |||||
Benefits, claims, losses and settlement expenses |
|
|
|
|
|
(23 |
) |
(6 |
) |
|
| |||||
Amortization of deferred acquisition costs |
|
|
|
|
|
3 |
|
(18 |
) |
(2 |
) | |||||
Interest and debt expense |
|
|
|
|
|
|
|
|
|
|
| |||||
General and administrative expense |
|
(2 |
) |
(2 |
) |
|
|
|
|
|
| |||||
Operating expenses |
|
(2 |
) |
(2 |
) |
(20 |
) |
(24 |
) |
(2 |
) | |||||
Pretax operating earnings |
|
$ |
2 |
|
$ |
2 |
|
$ |
20 |
|
$ |
24 |
|
$ |
2 |
|
(1) Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities
(2) Non-recurring integration charges related to Columbia Management acquisition
(3) Variable annuity guaranteed living benefit impacts include:
$158 million net expense related to hedged variable annuity living benefits
$45 million decrease in DAC and DSIC amortization resulting from hedged living benefits
(4) Reflects revenues and expenses of Consolidated Investment Entities
(5) Impact related to Threadneedles estimated change in market valuation attributable to its employee incentive compensation program
(6) Partial refund of 2011 industry-wide Financial Services Authority levy
(7) Revisions to certain calculations in the valuation of Variable Annuities
(8) Decrease in DAC and DSIC amortization from higher than projected separate account growth
Ameriprise Financial, Inc.
Disclosed Items
4 Qtr 2011
Excluded from Operating Earnings
|
|
Advice & Wealth |
|
Asset Management |
|
Annuities |
|
Corporate and Eliminations |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
Market Impact on |
|
|
|
|
| |||||||
|
|
Securities |
|
Securities |
|
Integration |
|
Securities |
|
VA Guaranteed |
|
Securities |
|
|
| |||||||
(in millions, unaudited) |
|
Gains/(Losses) (1) |
|
Gains/(Losses) (1) |
|
Charges (2) |
|
Gains/(Losses) (1) |
|
Living Benefits (3) |
|
Gains/(Losses) (1) |
|
CIEs (4) |
| |||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Management and financial advice fees |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
(20 |
) |
Distribution fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net investment income |
|
(4 |
) |
1 |
|
|
|
5 |
|
|
|
(1 |
) |
112 |
| |||||||
Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
34 |
| |||||||
Total revenues |
|
(4 |
) |
1 |
|
|
|
5 |
|
|
|
(1 |
) |
126 |
| |||||||
Banking and deposit interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total net revenues |
|
(4 |
) |
1 |
|
|
|
5 |
|
|
|
(1 |
) |
126 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Distribution expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Interest credited to fixed accounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Benefits, claims, losses and settlement expenses |
|
|
|
|
|
|
|
|
|
152 |
|
|
|
|
| |||||||
Amortization of deferred acquisition costs |
|
|
|
|
|
|
|
|
|
(41 |
) |
|
|
|
| |||||||
Interest and debt expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
73 |
| |||||||
General and administrative expense |
|
|
|
|
|
21 |
|
|
|
|
|
|
|
8 |
| |||||||
Total expenses |
|
|
|
|
|
21 |
|
|
|
111 |
|
|
|
81 |
| |||||||
Pretax segment income (loss) |
|
(4 |
) |
1 |
|
(21 |
) |
5 |
|
(111 |
) |
(1 |
) |
45 |
| |||||||
Less: Net income (loss) attributable to noncontrolling interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
45 |
| |||||||
Pretax segment gain (loss) attributable to Ameriprise Financial |
|
$ |
(4 |
) |
$ |
1 |
|
$ |
(21 |
) |
$ |
5 |
|
$ |
(111 |
) |
$ |
(1 |
) |
$ |
|
|
Included in Operating Earnings
|
|
Asset Management |
|
Annuities |
|
Protection |
| ||||||
|
|
|
|
Indexed |
|
Market |
|
Market |
| ||||
|
|
|
|
Annuity Reserve |
|
Impacts |
|
Impacts |
| ||||
(in millions, unaudited) |
|
CDO Gain (5) |
|
Adjustment (6) |
|
to DAC/DSIC (7) |
|
to DAC/DSIC (7) |
| ||||
Revenues |
|
|
|
|
|
|
|
|
| ||||
Management and financial advice fees |
|
$ |
9 |
|
$ |
|
|
$ |
|
|
$ |
|
|
Distribution fees |
|
|
|
|
|
|
|
|
| ||||
Net investment income |
|
6 |
|
|
|
|
|
|
| ||||
Premiums |
|
|
|
|
|
|
|
|
| ||||
Other revenues |
|
|
|
|
|
|
|
|
| ||||
Total revenues |
|
15 |
|
|
|
|
|
|
| ||||
Banking and deposit interest expense |
|
|
|
|
|
|
|
|
| ||||
Operating total net revenues |
|
15 |
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Expenses |
|
|
|
|
|
|
|
|
| ||||
Distribution expenses |
|
|
|
|
|
|
|
|
| ||||
Interest credited to fixed accounts |
|
|
|
8 |
|
|
|
|
| ||||
Benefits, claims, losses and settlement expenses |
|
|
|
|
|
(4 |
) |
|
| ||||
Amortization of deferred acquisition costs |
|
|
|
|
|
(12 |
) |
(1 |
) | ||||
Interest and debt expense |
|
|
|
|
|
|
|
|
| ||||
General and administrative expense |
|
4 |
|
|
|
|
|
|
| ||||
Operating expenses |
|
4 |
|
8 |
|
(16 |
) |
(1 |
) | ||||
Pretax operating earnings |
|
$ |
11 |
|
$ |
(8 |
) |
$ |
16 |
|
$ |
1 |
|
(1) Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities
(2) Non-recurring integration charges related to Columbia Management acquisition
(3) Variable annuity guaranteed living benefit impacts include:
$162 million net expense related to hedged variable annuity living benefits
$51 million decrease in DAC and DSIC amortization resulting from hedged living benefits
(4) Reflects revenues and expenses of Consolidated Investment Entities
(5) Gain on liquidation of CDO
(6) Adjustment in the liability for a closed book of indexed annuities
(7) Decrease in DAC and DSIC amortization from higher than projected separate account growth
Ameriprise Financial, Inc.
Disclosed Items
3 Qtr 2011
Excluded from Operating Earnings
|
|
Advice & Wealth |
|
Asset Management |
|
Annuities |
|
Protection |
|
Corporate and Eliminations |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
Market Impact on |
|
|
|
|
|
|
| ||||||||
|
|
Securities |
|
Securities |
|
Integration |
|
Securities |
|
VA Guaranteed |
|
Securities |
|
Securities |
|
|
| ||||||||
(in millions, unaudited) |
|
Gains/(Losses) (1) |
|
Gains/(Losses) (1) |
|
Charges (2) |
|
Gains/(Losses) (1) |
|
Living Benefits (3)(9) |
|
Gains/(Losses) (1) |
|
Gains/(Losses) (1) |
|
CIEs (4) |
| ||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Management and financial advice fees |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
(9 |
) |
Distribution fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Net investment income |
|
(2 |
) |
2 |
|
|
|
(2 |
) |
|
|
(1 |
) |
1 |
|
(65 |
) | ||||||||
Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22 |
| ||||||||
Total revenues |
|
(2 |
) |
2 |
|
|
|
(2 |
) |
|
|
(1 |
) |
1 |
|
(52 |
) | ||||||||
Banking and deposit interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total net revenues |
|
(2 |
) |
2 |
|
|
|
(2 |
) |
|
|
(1 |
) |
1 |
|
(52 |
) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Distribution expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest credited to fixed accounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Benefits, claims, losses and settlement expenses |
|
|
|
|
|
|
|
|
|
(119 |
) |
|
|
|
|
|
| ||||||||
Amortization of deferred acquisition costs |
|
|
|
|
|
|
|
|
|
42 |
|
|
|
|
|
|
| ||||||||
Interest and debt expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47 |
| ||||||||
General and administrative expense |
|
|
|
|
|
24 |
|
|
|
|
|
|
|
|
|
6 |
| ||||||||
Total expenses |
|
|
|
|
|
24 |
|
|
|
(77 |
) |
|
|
|
|
53 |
| ||||||||
Pretax segment income (loss) |
|
(2 |
) |
2 |
|
(24 |
) |
(2 |
) |
77 |
|
(1 |
) |
1 |
|
(105 |
) | ||||||||
Less: Net income (loss) attributable to noncontrolling interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(105 |
) | ||||||||
Pretax segment gain (loss) attributable to Ameriprise Financial |
|
$ |
(2 |
) |
$ |
2 |
|
$ |
(24 |
) |
$ |
(2 |
) |
$ |
77 |
|
$ |
(1 |
) |
$ |
1 |
|
$ |
|
|
Included in Operating Earnings
|
|
Advice & Wealth |
|
Asset Management |
|
Annuities |
|
Protection |
| ||||||||||||||||
|
|
|
|
|
|
|
|
Market |
|
Valuation |
|
Market |
|
Valuation |
|
Auto & Home |
| ||||||||
|
|
Structured Securities |
|
Threadneedle |
|
Structured Securities |
|
Impacts |
|
Assumptions & |
|
Impacts |
|
Assumptions & |
|
Catastrophe |
| ||||||||
(in millions, unaudited) |
|
Investment Income (5) |
|
Project Costs (6) |
|
Investment Income (5) |
|
to DAC/DSIC (7) |
|
Model Changes (8)(9) |
|
to DAC/DSIC (7) |
|
Model Changes (8) |
|
Losses (10) |
| ||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Management and financial advice fees |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Distribution fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Net investment income |
|
6 |
|
|
|
37 |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
(20 |
) |
|
| ||||||||
Total revenues |
|
6 |
|
|
|
37 |
|
|
|
|
|
|
|
(20 |
) |
|
| ||||||||
Banking and deposit interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Operating total net revenues |
|
6 |
|
|
|
37 |
|
|
|
|
|
|
|
(20 |
) |
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Distribution expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest credited to fixed accounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Benefits, claims, losses and settlement expenses |
|
|
|
|
|
1 |
|
9 |
|
(40 |
) |
|
|
(4 |
) |
18 |
| ||||||||
Amortization of deferred acquisition costs |
|
|
|
|
|
2 |
|
30 |
|
39 |
|
3 |
|
(1 |
) |
|
| ||||||||
Interest and debt expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
General and administrative expense |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Operating expenses |
|
|
|
10 |
|
3 |
|
39 |
|
(1 |
) |
3 |
|
(5 |
) |
18 |
| ||||||||
Pretax operating earnings |
|
$ |
6 |
|
$ |
(10 |
) |
$ |
34 |
|
$ |
(39 |
) |
$ |
1 |
|
$ |
(3 |
) |
$ |
(15 |
) |
$ |
(18 |
) |
(1) Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities
(2) Non-recurring integration charges related to Columbia Management acquisition
(3) Variable annuity guaranteed living benefit impacts include:
$130 million net benefit related to hedged variable annuity living benefits
$53 million increase in DAC and DSIC amortization resulting from hedged living benefits
(4) Reflects revenues and expenses of Consolidated Investment Entities
(5) Adjustment for additional bond discount amortization investment income related to prior periods resulting from revisions to the accounting classification of certain structured securities
(6) Threadneedle project implementation costs primarily related to a new transfer agency agreement
(7) Increase in DAC and DSIC amortization from lower than projected separate account growth
(8) Net pretax impact of annual review/updating of valuation assumptions and model changes
(9) $4 million expense attributable to annual review/updating of valuation assumptions and model changes is excluded from operating earnings and disclosed as part of the Market Impact on VA Guaranteed Living Benefits
(10) Above the normal expected level of claims experience due to storms; total catastrophe losses were $23 million for the quarter
Exhibit B
Statistical Supplement Package
(unaudited)
Third Quarter 2012
Non-GAAP Financial Measure Reconciliations
Ameriprise Financial, Inc.
Non-GAAP Financial Measure Reconciliations
Third Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-date |
| |||||||||
(in millions unless otherwise noted, unaudited) |
|
3 Qtr 2011 |
|
4 Qtr 2011 |
|
1 Qtr 2012 |
|
2 Qtr 2012 |
|
3 Qtr 2012 |
|
2011 |
|
2012 |
| |||||||
Return on Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net income attributable to Ameriprise Financial (last twelve months) |
|
$ |
1,144 |
|
$ |
1,116 |
|
$ |
1,119 |
|
$ |
1,027 |
|
$ |
876 |
|
$ |
1,144 |
|
$ |
876 |
|
Less income (loss) from discontinued operations, net of tax (last twelve months) |
|
(99 |
) |
(60 |
) |
10 |
|
13 |
|
10 |
|
(99 |
) |
10 |
| |||||||
Net income from continuing operations attributable to Ameriprise Financial (last twelve months) |
|
1,243 |
|
1,176 |
|
1,109 |
|
1,014 |
|
866 |
|
1,243 |
|
866 |
| |||||||
Less adjustments (1) |
|
(53 |
) |
(98 |
) |
(156 |
) |
(172 |
) |
(320 |
) |
(53 |
) |
(320 |
) | |||||||
Operating earnings (last twelve months) |
|
$ |
1,296 |
|
$ |
1,274 |
|
$ |
1,265 |
|
$ |
1,186 |
|
$ |
1,186 |
|
$ |
1,296 |
|
$ |
1,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total Ameriprise Financial shareholders equity (five point quarter end average) |
|
$ |
9,303 |
|
$ |
9,169 |
|
$ |
9,114 |
|
$ |
9,072 |
|
$ |
9,057 |
|
$ |
9,303 |
|
$ |
9,057 |
|
Less assets and liabilities held for sale (five point quarter end average) |
|
50 |
|
30 |
|
11 |
|
16 |
|
21 |
|
50 |
|
21 |
| |||||||
Less AOCI, net of tax (five point quarter end average) |
|
753 |
|
701 |
|
741 |
|
804 |
|
912 |
|
753 |
|
912 |
| |||||||
Total Ameriprise Financial shareholders equity from continuing operations excluding AOCI (five point quarter end average) |
|
8,500 |
|
8,438 |
|
8,362 |
|
8,252 |
|
8,124 |
|
8,500 |
|
8,124 |
| |||||||
Less equity impacts attributable to the consolidated investment entities (five point quarter end average) |
|
510 |
|
478 |
|
454 |
|
427 |
|
406 |
|
510 |
|
406 |
| |||||||
Operating equity (five point quarter end average) |
|
$ |
7,990 |
|
$ |
7,960 |
|
$ |
7,908 |
|
$ |
7,825 |
|
$ |
7,718 |
|
$ |
7,990 |
|
$ |
7,718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Return on equity excluding AOCI |
|
14.6 |
% |
13.9 |
% |
13.3 |
% |
12.3 |
% |
10.7 |
% |
14.6 |
% |
10.7 |
% | |||||||
Operating return on equity excluding AOCI |
|
16.2 |
% |
16.0 |
% |
16.0 |
% |
15.2 |
% |
15.4 |
% |
16.2 |
% |
15.4 |
% | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Effective Tax Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Income from continuing operations before income tax provision |
|
$ |
326 |
|
$ |
326 |
|
$ |
322 |
|
$ |
299 |
|
$ |
199 |
|
$ |
1,121 |
|
$ |
820 |
|
Less pretax income (loss) attributable to noncontrolling interests |
|
(105 |
) |
45 |
|
4 |
|
(53 |
) |
(22 |
) |
(151 |
) |
(71 |
) | |||||||
Income from continuing operations before income tax provision excluding consolidated investment entities (CIEs) |
|
431 |
|
281 |
|
318 |
|
352 |
|
221 |
|
1,272 |
|
891 |
| |||||||
Less adjustments (2) |
|
51 |
|
(131 |
) |
(138 |
) |
(47 |
) |
(176 |
) |
(20 |
) |
(361 |
) | |||||||
Pretax operating earnings |
|
$ |
380 |
|
$ |
412 |
|
$ |
456 |
|
$ |
399 |
|
$ |
397 |
|
$ |
1,292 |
|
$ |
1,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Income tax provision from continuing operations |
|
$ |
109 |
|
$ |
58 |
|
$ |
73 |
|
$ |
128 |
|
$ |
47 |
|
$ |
319 |
|
$ |
248 |
|
Operating income tax provision |
|
$ |
91 |
|
$ |
104 |
|
$ |
121 |
|
$ |
145 |
|
$ |
108 |
|
$ |
326 |
|
$ |
374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Effective tax rate (3) |
|
33.2 |
% |
17.9 |
% |
22.6 |
% |
42.8 |
% |
23.8 |
% |
28.4 |
% |
30.3 |
% | |||||||
Effective tax rate excluding noncontrolling interests (3) |
|
25.2 |
% |
20.7 |
% |
22.9 |
% |
36.4 |
% |
21.4 |
% |
25.1 |
% |
27.9 |
% | |||||||
Operating effective tax rate (3) |
|
23.9 |
% |
25.2 |
% |
26.5 |
% |
36.3 |
% |
27.2 |
% |
25.2 |
% |
29.9 |
% |
(1) Adjustments reflect the trailing twelve months sum of after-tax net realized gains/losses; the market impact on variable annuity guaranteed living benefits net of hedges and related DSIC and DAC amortization; and integration/restructuring charges.
(2) Adjustments reflect net realized gains/losses; the market impact on variable annuity guaranteed living benefits net of hedges and related DSIC and DAC amortization; and integration/restructuring charges.
(3) Q2 2012 includes a tax-related item related to incomplete data received from a third party service provider for securities lending activities in prior periods.
Ameriprise Financial, Inc.
Non-GAAP Financial Measure Reconciliations
Third Quarter 2012
(in millions unless otherwise noted, unaudited) |
|
September 30, 2011 |
|
December 31, 2011 |
|
March 31, 2012 |
|
June 30, 2012 |
|
September 30, 2012 |
| |||||
Long-term Debt Summary |
|
|
|
|
|
|
|
|
|
|
| |||||
Senior notes |
|
$ |
2,098 |
|
$ |
2,099 |
|
$ |
2,087 |
|
$ |
2,109 |
|
$ |
2,119 |
|
Junior subordinated notes |
|
306 |
|
294 |
|
294 |
|
294 |
|
294 |
| |||||
Total Ameriprise Financial long-term debt |
|
2,404 |
|
2,393 |
|
2,381 |
|
2,403 |
|
2,413 |
| |||||
Less fair value of hedges and unamortized discount |
|
148 |
|
149 |
|
137 |
|
159 |
|
169 |
| |||||
Total Ameriprise Financial long-term debt excluding fair value of hedges and unamortized discount |
|
$ |
2,256 |
|
$ |
2,244 |
|
$ |
2,244 |
|
$ |
2,244 |
|
$ |
2,244 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Equity Summary |
|
|
|
|
|
|
|
|
|
|
| |||||
Total equity |
|
$ |
9,737 |
|
$ |
9,694 |
|
$ |
9,749 |
|
$ |
9,613 |
|
$ |
9,821 |
|
Less noncontrolling interests |
|
716 |
|
706 |
|
634 |
|
608 |
|
664 |
| |||||
Total Ameriprise Financial shareholders equity |
|
9,021 |
|
8,988 |
|
9,115 |
|
9,005 |
|
9,157 |
| |||||
Less equity of consolidated investment entities |
|
347 |
|
402 |
|
413 |
|
370 |
|
365 |
| |||||
Less assets and liabilities held for sale |
|
105 |
|
|
|
|
|
|
|
|
| |||||
Total Ameriprise Financial shareholders equity from continuing operations excluding CIEs |
|
$ |
8,569 |
|
$ |
8,586 |
|
$ |
8,702 |
|
$ |
8,635 |
|
$ |
8,792 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Capital Summary |
|
|
|
|
|
|
|
|
|
|
| |||||
Total Ameriprise Financial long-term debt |
|
$ |
2,404 |
|
$ |
2,393 |
|
$ |
2,381 |
|
$ |
2,403 |
|
$ |
2,413 |
|
Total Ameriprise Financial shareholders equity |
|
9,021 |
|
8,988 |
|
9,115 |
|
9,005 |
|
9,157 |
| |||||
Total Ameriprise Financial capital |
|
11,425 |
|
11,381 |
|
11,496 |
|
11,408 |
|
11,570 |
| |||||
Less equity of consolidated investment entities |
|
347 |
|
402 |
|
413 |
|
370 |
|
365 |
| |||||
Less assets and liabilities held for sale |
|
105 |
|
|
|
|
|
|
|
|
| |||||
Less fair value of hedges and unamortized discount |
|
148 |
|
149 |
|
137 |
|
159 |
|
169 |
| |||||
Total Ameriprise Financial capital from continuing operations excluding fair value of hedges, unamortized discount and equity of CIEs |
|
$ |
10,825 |
|
$ |
10,830 |
|
$ |
10,946 |
|
$ |
10,879 |
|
$ |
11,036 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital |
|
21.0 |
% |
21.0 |
% |
20.7 |
% |
21.1 |
% |
20.9 |
% | |||||
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital from continuing operations excluding fair value of hedges, unamortized discount and equity of CIEs |
|
20.8 |
% |
20.7 |
% |
20.5 |
% |
20.6 |
% |
20.3 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Ameriprise Financial shareholders equity |
|
$ |
9,021 |
|
$ |
8,988 |
|
$ |
9,115 |
|
$ |
9,005 |
|
$ |
9,157 |
|
AOCI |
|
749 |
|
751 |
|
851 |
|
942 |
|
1,267 |
| |||||
Appropriated retained earnings of CIEs |
|
380 |
|
428 |
|
440 |
|
394 |
|
390 |
| |||||
AOCI attributable to CIEs |
|
(33 |
) |
(26 |
) |
(27 |
) |
(24 |
) |
(25 |
) | |||||
Assets and liabilities held for sale |
|
105 |
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Ameriprise Financial shareholders equity |
|
$ |
9,021 |
|
$ |
8,988 |
|
$ |
9,115 |
|
$ |
9,005 |
|
$ |
9,157 |
|
Less assets and liabilities held for sale |
|
105 |
|
|
|
|
|
|
|
|
| |||||
Less AOCI |
|
749 |
|
751 |
|
851 |
|
942 |
|
1,267 |
| |||||
Ameriprise Financial shareholders equity from continuing operations excluding AOCI |
|
$ |
8,167 |
|
$ |
8,237 |
|
$ |
8,264 |
|
$ |
8,063 |
|
$ |
7,890 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Ameriprise Financial shareholders equity |
|
$ |
9,021 |
|
$ |
8,988 |
|
$ |
9,115 |
|
$ |
9,005 |
|
$ |
9,157 |
|
Less assets and liabilities held for sale |
|
105 |
|
|
|
|
|
|
|
|
| |||||
Less appropriated retained earnings of CIEs |
|
380 |
|
428 |
|
440 |
|
394 |
|
390 |
| |||||
Less AOCI |
|
749 |
|
751 |
|
851 |
|
942 |
|
1,267 |
| |||||
Ameriprise Financial shareholders equity from continuing operations excluding CIEs and AOCI |
|
$ |
7,787 |
|
$ |
7,809 |
|
$ |
7,824 |
|
$ |
7,669 |
|
$ |
7,500 |
|
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