EX-99.2 3 a12-24479_1ex99d2.htm EX-99.2

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

 

2



 

 

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2012

 

Consolidated Results

 

3



 

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 Company’s 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.

 

4



 

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%.

 

5



 

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%.

 

6



 

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%.

 

7



 

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%.

 

8



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2012

 

 

Segment Results

 

9



 

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%.

 

10



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2012

 

 

Advice & Wealth Management Segment

 

11



 

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.

 

12



 

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%.

 

13



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2012

 

 

Asset Management Segment

 

14



 

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%.

 

15



 

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%.

 

16



 

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%.

 

17



 

Ameriprise Financial, Inc.

Asset Management Segment - Threadneedle

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.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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%.

 

18



 

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 fund’s 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.

 

19



 

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.

 

20



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2012

 

 

Annuities Segment

 

21



 

Ameriprise Financial, Inc.

Annuities 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

 

$

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%.

 

22



 

Ameriprise Financial, Inc.

Annuities 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.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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%.

 

23



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2012

 

 

Protection Segment

 

24



 

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%.

 

25



 

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%.

 

26



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2012

 

 

Corporate & Other Segment

 

27



 

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%.

 

28



 

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%.

 

29



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2012

 

 

Balance Sheet and Ratings Information

 

30



 

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

 

 

31



 

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
Company

 

Standard & Poor’s Rating
Services

 

Moody’s Investors
Service, Inc.

 

Fitch Ratings
Ltd.

 

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 agency’s website.

(3)  Includes accumulated other comprehensive income, net of tax.

     N/R - Not Rated.

 

32



 

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.

 

33



 

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.

 

34



 

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.

 

35



 

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 management’s 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 doesn’t need to result in time of sale revenue), or activity that doesn’t increase assets or premiums in force, but generates “fee revenue”.

 

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

 

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

 

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 Life’s 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.

 

36



 

Exhibit A

 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2012

 

 

Disclosed Items

 

37



 

Ameriprise Financial, Inc.

Disclosed Items

3 Qtr 2012

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth
Management

 

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

 

38



 

Ameriprise Financial, Inc.

Disclosed Items

2 Qtr 2012

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth
Management

 

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

 

39


 


 

Ameriprise Financial, Inc.

Disclosed Items

1 Qtr 2012

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth
Management

 

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 Threadneedle’s 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

 

40



 

Ameriprise Financial, Inc.

Disclosed Items

4 Qtr 2011

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth
Management

 

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

 

41



 

Ameriprise Financial, Inc.

Disclosed Items

3 Qtr 2011

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth
Management

 

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
Management

 

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

 

42



 

Exhibit B

 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2012

 

 

Non-GAAP Financial Measure Reconciliations

 

43



 

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.

 

44



 

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

 

 

45