EX-99.2 3 a18-3498_1ex99d2.htm EX-99.2

Exhibit 99.2

 

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2017

 

1



 

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

Global Asset Management Products

17

Retail Fund Performance - Columbia

18

Retail Fund Performance - Threadneedle

19

Annuities Segment

 

Segment Operating Income Statements

21

Segment Metrics

22

Protection Segment

 

Segment Operating Income Statements

24

Segment Metrics

25

Corporate & Other Segment

 

Segment Operating Income Statements

27

Eliminations

 

Operating Income Statements

28

Balance Sheet and Ratings Information

 

Consolidated Balance Sheets

30

Capital and Ratings Information

31

Investments

32

Non-GAAP Financial Information

33

Glossary of Selected Terminology

 

Glossary of Selected Terminology - Segments

34

Glossary of Selected Terminology

35

Exhibit A

 

Disclosed Items

38

Exhibit B

 

Corporate & Other Segment Details

44

Exhibit C

 

Non-GAAP Financial Measure Reconciliations

47

 

2



 

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2017

 

Consolidated Results

 

3



 

Ameriprise Financial, Inc.

Statistical Supplement Presentation

Fourth Quarter 2017

 

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 investment gains or losses, net of deferred sales inducement costs (“DSIC”) and deferred acquisition costs (“DAC”) amortization, unearned revenue amortization and the reinsurance accrual; the market impact on variable annuity guaranteed benefits, net of hedges and the related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact on fixed indexed annuity benefits, net of hedges and the related DAC amortization; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration and restructuring charges; income (loss) from discontinued operations; and the impact of consolidating certain investment entities (“CIEs”), best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis. The Company also uses a number of non-GAAP financial measures to evaluate its financial performance on a basis comparable to that used by some securities analysts and investors. However, these measures are not a substitute for GAAP. Therefore, reconciliations to GAAP measures are provided on page 6 and in Exhibit C “Non-GAAP Financial Measure Reconciliations” on pages 47 and 48.

 

The market impact on variable annuity guaranteed benefits, fixed indexed annuity benefits and indexed universal life benefits includes changes in liability values caused by changes in financial market conditions, net of changes in economic hedge values.  The market impact also includes certain valuation adjustments made in accordance with Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value Measurements and Disclosures (“ASC 820”), including the impact on liability values of discounting projected benefits to reflect a current estimate of RiverSource Life Insurance Company’s nonperformance spread.  Further, the market impact is net of related impacts on DAC, DSIC and unearned revenue amortization as well as a reinsurance accrual for indexed universal life.  The market impact relates to guaranteed minimum accumulation benefits, non-life contingent guaranteed minimum withdrawal benefits, fixed indexed annuity benefits and indexed universal life 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

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions, except per share amounts, unaudited)

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

1,489

 

$

1,482

 

$

1,561

 

$

1,626

 

$

1,723

 

$

5,778

 

$

6,392

 

$

234

 

16

%

$

614

 

11

%

$

97

 

6

%

Distribution fees

 

457

 

443

 

430

 

437

 

460

 

1,795

 

1,770

 

3

 

1

%

(25

)

(1

)%

23

 

5

%

Net investment income

 

486

 

391

 

391

 

372

 

355

 

1,576

 

1,509

 

(131

)

(27

)%

(67

)

(4

)%

(17

)

(5

)%

Premiums

 

377

 

339

 

348

 

348

 

359

 

1,491

 

1,394

 

(18

)

(5

)%

(97

)

(7

)%

11

 

3

%

Other revenues

 

263

 

256

 

267

 

210

 

277

 

1,095

 

1,010

 

14

 

5

%

(85

)

(8

)%

67

 

32

%

Total revenues

 

3,072

 

2,911

 

2,997

 

2,993

 

3,174

 

11,735

 

12,075

 

102

 

3

%

340

 

3

%

181

 

6

%

Banking and deposit interest expense

 

10

 

10

 

12

 

12

 

14

 

39

 

48

 

4

 

40

%

9

 

23

%

2

 

17

%

Total net revenues

 

3,062

 

2,901

 

2,985

 

2,981

 

3,160

 

11,696

 

12,027

 

98

 

3

%

331

 

3

%

179

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

831

 

823

 

832

 

850

 

894

 

3,202

 

3,399

 

63

 

8

%

197

 

6

%

44

 

5

%

Interest credited to fixed accounts

 

158

 

162

 

171

 

176

 

147

 

623

 

656

 

(11

)

(7

)%

33

 

5

%

(29

)

(16

)%

Benefits, claims, losses and settlement expenses

 

712

 

567

 

611

 

474

 

581

 

2,646

 

2,233

 

(131

)

(18

)%

(413

)

(16

)%

107

 

23

%

Amortization of deferred acquisition costs

 

55

 

72

 

69

 

48

 

78

 

415

 

267

 

23

 

42

%

(148

)

(36

)%

30

 

63

%

Interest and debt expense

 

81

 

50

 

52

 

52

 

53

 

241

 

207

 

(28

)

(35

)%

(34

)

(14

)%

1

 

2

%

General and administrative expense

 

756

 

752

 

739

 

753

 

807

 

2,977

 

3,051

 

51

 

7

%

74

 

2

%

54

 

7

%

Total expenses

 

2,593

 

2,426

 

2,474

 

2,353

 

2,560

 

10,104

 

9,813

 

(33

)

(1

)%

(291

)

(3

)%

207

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

469

 

475

 

511

 

628

 

600

 

1,592

 

2,214

 

131

 

28

%

622

 

39

%

(28

)

(4

)%

Income tax provision

 

69

 

72

 

118

 

125

 

419

 

278

 

734

 

350

 

#

 

456

 

#

 

294

 

#

 

Net income

 

$

400

 

$

403

 

$

393

 

$

503

 

$

181

 

$

1,314

 

$

1,480

 

$

(219

)

(55

)%

$

166

 

13

%

$

(322

)

(64

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

340

 

$

337

 

$

335

 

$

340

 

$

337

 

$

1,368

 

$

1,349

 

$

(3

)

(1

)%

$

(19

)

(1

)%

$

(3

)

(1

)%

Realized investment gains (losses)

 

11

 

17

 

21

 

(3

)

11

 

6

 

46

 

 

 

40

 

#

 

14

 

#

 

Affordable housing

 

(9

)

(12

)

(13

)

(17

)

(58

)

(44

)

(100

)

(49

)

#

 

(56

)

#

 

(41

)

#

 

Other (including seed money)

 

78

 

24

 

20

 

26

 

38

 

91

 

108

 

(40

)

(51

)%

17

 

19

%

12

 

46

%

Consolidated investment entities

 

66

 

25

 

28

 

26

 

27

 

155

 

106

 

(39

)

(59

)%

(49

)

(32

)%

1

 

4

%

Total net investment income

 

$

486

 

$

391

 

$

391

 

$

372

 

$

355

 

$

1,576

 

$

1,509

 

$

(131

)

(27

)%

$

(67

)

(4

)%

$

(17

)

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

2.49

 

$

2.56

 

$

2.53

 

$

3.29

 

$

1.20

 

$

7.90

 

$

9.60

 

$

(1.29

)

(52

)%

$

1.70

 

22

%

$

(2.09

)

(64

)%

Earnings per diluted share

 

$

2.46

 

$

2.52

 

$

2.50

 

$

3.24

 

$

1.18

 

$

7.81

 

$

9.44

 

$

(1.28

)

(52

)%

$

1.63

 

21

%

$

(2.06

)

(64

)%

Earnings per diluted share growth

 

23.0

%

20.6

%

26.9

%

NM

 

(52.0

)%

(7.9

)%

20.9

%

(75.0

)%

 

 

28.8

%

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

160.4

 

157.5

 

155.1

 

153.0

 

151.0

 

166.3

 

154.1

 

(9.4

)

(6

)%

(12.2

)

(7

)%

(2.0

)

(1

)%

Effect of potentially dilutive nonqualified stock options and other share-based awards

 

2.0

 

2.6

 

2.4

 

2.4

 

2.8

 

1.9

 

2.6

 

0.8

 

40

%

0.7

 

37

%

0.4

 

17

%

Diluted weighted average common shares outstanding

 

162.4

 

160.1

 

157.5

 

155.4

 

153.8

 

168.2

 

156.7

 

(8.6

)

(5

)%

(11.5

)

(7

)%

(1.6

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue growth

 

(1.3

)%

4.9

%

4.0

%

(0.6

)%

3.2

%

(3.9

)%

2.8

%

4.5

%

 

 

6.7

%

 

 

3.8

%

 

 

Pretax income margin

 

15.3

%

16.4

%

17.1

%

21.1

%

19.0

%

13.6

%

18.4

%

3.7

%

 

 

4.8

%

 

 

(2.1

)%

 

 

Effective tax rate

 

14.5

%

15.2

%

23.1

%

19.9

%

69.8

%

17.4

%

33.1

%

55.3

%

 

 

15.7

%

 

 

49.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity / outstanding shares (1)

 

$

39.70

 

$

39.81

 

$

40.64

 

$

41.53

 

$

39.93

 

$

39.70

 

$

39.93

 

$

0.23

 

1

%

$

0.23

 

1

%

$

(1.60

)

(4

)%

Total equity excluding AOCI / outstanding shares (2)(3)

 

$

38.44

 

$

38.41

 

$

38.69

 

$

39.48

 

$

38.41

 

$

38.44

 

$

38.41

 

$

(0.03

)

 

$

(0.03

)

 

$

(1.07

)

(3

)%

 


(1)    Calculated as total equity divided by common shares outstanding plus common stock equivalents outstanding at period end.

(2)    Calculated as total equity excluding AOCI divided by common shares outstanding plus common stock equivalents outstanding at period end.

(3)    See non-GAAP financial information on pg 33.  Non-GAAP financial measure reconciliations can be found on pages 47 and 48.

NM   Not Meaningful

# Variance equal to or greater than 100%.

 

5



 

Ameriprise Financial, Inc.

Consolidated Operating Results and Highlights

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions except per share amounts, unaudited)

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

$

3,062

 

$

2,901

 

$

2,985

 

$

2,981

 

$

3,160

 

$

11,696

 

$

12,027

 

$

98

 

3

%

$

331

 

3

%

$

179

 

6

%

Less revenues attributable to the CIEs

 

51

 

22

 

25

 

23

 

24

 

128

 

94

 

(27

)

(53

)%

(34

)

(27

)%

1

 

4

%

Less net realized investment gains (losses) (1)

 

11

 

17

 

21

 

(3

)

11

 

6

 

46

 

 

 

40

 

#

 

14

 

#

 

Less market impact on indexed universal life benefits (1)

 

6

 

1

 

(3

)

(5

)

8

 

24

 

1

 

2

 

33

%

(23

)

(96

)%

13

 

#

 

Less market impact of hedges on investments

 

57

 

1

 

(8

)

(1

)

6

 

3

 

(2

)

(51

)

(89

)%

(5

)

#

 

7

 

#

 

Operating total net revenues (2)

 

$

2,937

 

$

2,860

 

$

2,950

 

$

2,967

 

$

3,111

 

$

11,535

 

$

11,888

 

$

174

 

6

%

$

353

 

3

%

$

144

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

400

 

$

403

 

$

393

 

$

503

 

$

181

 

$

1,314

 

$

1,480

 

$

(219

)

(55

)%

$

166

 

13

%

$

(322

)

(64

)%

Less net income (loss) attributable to the CIEs

 

(1

)

1

 

 

 

 

(2

)

1

 

1

 

#

 

3

 

#

 

 

 

Integration/restructuring charges (3)

 

 

 

 

1

 

4

 

 

5

 

4

 

 

5

 

 

3

 

#

 

Market impact on variable annuity guaranteed benefits (1)(3)

 

138

 

63

 

80

 

55

 

34

 

216

 

232

 

(104

)

(75

)%

16

 

7

%

(21

)

(38

)%

Market impact on fixed indexed annuity benefits (1)(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market impact on indexed universal life benefits (1)(3)

 

(5

)

 

6

 

10

 

(20

)

(36

)

(4

)

(15

)

#

 

32

 

89

%

(30

)

#

 

Market impact of hedges on investments (3)

 

(57

)

(1

)

8

 

1

 

(6

)

(3

)

2

 

51

 

89

%

5

 

#

 

(7

)

#

 

Less net realized investment gains (losses) (1)(3)

 

11

 

16

 

20

 

(3

)

11

 

6

 

44

 

 

 

38

 

#

 

14

 

#

 

Tax effect of adjustments (4)

 

(23

)

(16

)

(26

)

(25

)

 

(60

)

(67

)

23

 

#

 

(7

)

(12

)%

25

 

#

 

Operating earnings (2)

 

$

443

 

$

432

 

$

441

 

$

548

 

$

182

 

$

1,427

 

$

1,603

 

$

(261

)

(59

)%

$

176

 

12

%

$

(366

)

(67

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

$

469

 

$

475

 

$

511

 

$

628

 

$

600

 

$

1,592

 

$

2,214

 

$

131

 

28

%

$

622

 

39

%

$

(28

)

(4

)%

Less pretax income (loss) attributable to the CIEs

 

(1

)

1

 

1

 

 

 

(2

)

2

 

1

 

#

 

4

 

#

 

 

 

Integration/restructuring charges

 

 

 

 

1

 

4

 

 

5

 

4

 

 

5

 

 

3

 

#

 

Market impact on variable annuity guaranteed benefits (1)

 

138

 

63

 

80

 

55

 

34

 

216

 

232

 

(104

)

(75

)%

16

 

7

%

(21

)

(38

)%

Market impact on fixed indexed annuity benefits (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market impact on indexed universal life benefits (1)

 

(5

)

 

6

 

10

 

(20

)

(36

)

(4

)

(15

)

#

 

32

 

89

%

(30

)

#

 

Market impact of hedges on investments

 

(57

)

(1

)

8

 

1

 

(6

)

(3

)

2

 

51

 

89

%

5

 

#

 

(7

)

#

 

Less net realized investment gains (losses) (1)

 

11

 

16

 

20

 

(3

)

11

 

6

 

44

 

 

 

38

 

#

 

14

 

#

 

Pretax operating earnings (2)

 

$

535

 

$

520

 

$

584

 

$

698

 

$

601

 

$

1,765

 

$

2,403

 

$

66

 

12

%

$

638

 

36

%

$

(97

)

(14

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Operating Margin (2)(5)

 

18.2

%

18.2

%

19.8

%

23.5

%

19.3

%

15.3

%

20.2

%

1.1

%

 

 

4.9

%

 

 

(4.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Effective Tax Rate (2)(6)

 

17.2

%

16.9

%

24.5

%

21.5

%

69.7

%

19.2

%

33.3

%

52.5

%

 

 

14.1

%

 

 

48.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

160.4

 

157.5

 

155.1

 

153.0

 

151.0

 

166.3

 

154.1

 

(9.4

)

(6

)%

(12.2

)

(7

)%

(2.0

)

(1

)%

Diluted

 

162.4

 

160.1

 

157.5

 

155.4

 

153.8

 

168.2

 

156.7

 

(8.6

)

(5

)%

(11.5

)

(7

)%

(1.6

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Earnings Per Share (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic operating earnings per share

 

$

2.76

 

$

2.74

 

$

2.84

 

$

3.58

 

$

1.21

 

$

8.58

 

$

10.40

 

$

(1.55

)

(56

)%

$

1.82

 

21

%

$

(2.37

)

(66

)%

Operating earnings per diluted share

 

$

2.73

 

$

2.70

 

$

2.80

 

$

3.53

 

$

1.18

 

$

8.48

 

$

10.23

 

$

(1.55

)

(57

)%

$

1.75

 

21

%

$

(2.35

)

(67

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity excluding AOCI (2)(6)

 

20.4

%

21.6

%

23.0

%

28.1

%

24.8

%

20.4

%

24.8

%

4.4

%

 

 

4.4

%

 

 

(3.3

)%

 

 

Operating return on equity excluding AOCI (2)(6)

 

22.2

%

23.6

%

25.2

%

30.8

%

26.9

%

22.2

%

26.9

%

4.7

%

 

 

4.7

%

 

 

(3.9

)%

 

 

 


(1)        Operating adjustments for net realized investment gains (losses), market impact on indexed universal life benefits, market impact on fixed indexed annuity benefits and market impact on variable annuity guaranteed benefits are net of the following impacts, as applicable:  hedges, DAC and DSIC amortization, unearned revenue amortization and the reinsurance accrual.

(2)        See non-GAAP financial information on pg 33.

(3)        Pretax operating adjustments

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

(5)        Defined as pretax operating earnings as a percentage of operating total net revenues.

(6)        Non-GAAP financial measure reconciliations can be found on pg 47.

# Variance equal to or greater than 100%.

 

6



 

Ameriprise Financial, Inc.

Consolidated Operating Results and Highlights

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions except per share amounts, headcount and where noted, unaudited)

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Book Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity excluding CIEs / outstanding shares (1)(2)

 

$

39.70

 

$

39.81

 

$

40.63

 

$

41.53

 

$

39.93

 

$

39.70

 

$

39.93

 

$

0.23

 

1

%

$

0.23

 

1

%

$

(1.60

)

(4

)%

Total equity excluding CIEs and AOCI / outstanding shares (1)(3)

 

$

38.44

 

$

38.41

 

$

38.69

 

$

39.47

 

$

38.40

 

$

38.44

 

$

38.40

 

$

(0.04

)

 

$

(0.04

)

 

$

(1.07

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenue growth: Target 6 - 8%

 

(1.4

)%

2.6

%

3.3

%

0.4

%

5.9

%

(1.7

)%

3.1

%

7.3

%

 

 

4.8

%

 

 

5.5

%

 

 

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

 

10.5

%

24.4

%

25.6

%

NM

 

(56.8

)%

(9.0

)%

20.6

%

(67.3

)%

 

 

29.6

%

 

 

NM

 

 

 

Operating return on equity excluding AOCI: Target 19 - 23% (1)

 

22.2

%

23.6

%

25.2

%

30.8

%

26.9

%

22.2

%

26.9

%

4.7

%

 

 

4.7

%

 

 

(3.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt to total Ameriprise Financial capital

 

31.7

%

31.9

%

31.8

%

31.5

%

32.5

%

31.7

%

32.5

%

0.8

%

 

 

0.8

%

 

 

1.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill and Intangible Assets

 

$

1,924

 

$

1,924

 

$

1,931

 

$

1,983

 

$

2,027

 

$

1,924

 

$

2,027

 

$

103

 

5

%

$

103

 

5

%

$

44

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Under Management and Administration

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management AUM

 

$

199,712

 

$

211,740

 

$

221,074

 

$

233,890

 

$

246,715

 

$

199,712

 

$

246,715

 

$

47,003

 

24

%

$

47,003

 

24

%

$

12,825

 

5

%

Asset Management AUM

 

454,413

 

467,031

 

472,649

 

483,953

 

494,558

 

454,413

 

494,558

 

40,145

 

9

%

40,145

 

9

%

10,605

 

2

%

Corporate AUM

 

346

 

331

 

318

 

292

 

41

 

346

 

41

 

(305

)

(88

)%

(305

)

(88

)%

(251

)

(86

)%

Eliminations

 

(24,841

)

(24,681

)

(24,577

)

(25,883

)

(27,039

)

(24,841

)

(27,039

)

(2,198

)

(9

)%

(2,198

)

(9

)%

(1,156

)

(4

)%

Total Assets Under Management

 

629,630

 

654,421

 

669,464

 

692,252

 

714,275

 

629,630

 

714,275

 

84,645

 

13

%

84,645

 

13

%

22,023

 

3

%

Total Assets Under Administration

 

157,742

 

163,165

 

165,234

 

177,203

 

182,767

 

157,742

 

182,767

 

25,025

 

16

%

25,025

 

16

%

5,564

 

3

%

Total AUM and AUA

 

$

787,372

 

$

817,586

 

$

834,698

 

$

869,455

 

$

897,042

 

$

787,372

 

$

897,042

 

$

109,670

 

14

%

$

109,670

 

14

%

$

27,587

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise client assets

 

$

479,209

 

$

498,907

 

$

512,035

 

$

538,662

 

$

559,692

 

$

479,209

 

$

559,692

 

$

80,483

 

17

%

$

80,483

 

17

%

$

21,030

 

4

%

Total financial advisors

 

9,675

 

9,668

 

9,640

 

9,890

 

9,896

 

9,675

 

9,896

 

221

 

2

%

221

 

2

%

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Flows and Net Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisor wrap

 

$

3,310

 

$

3,944

 

$

4,451

 

$

6,125

 

$

5,013

 

$

10,184

 

$

19,533

 

$

1,703

 

51

%

$

9,349

 

92

%

$

(1,112

)

(18

)%

Asset Management

 

(2,095

)

(5,629

)

(8,742

)

(4,670

)

2,357

 

(18,635

)

(16,684

)

4,452

 

#

 

1,951

 

10

%

7,027

 

#

 

Annuities (4)

 

(983

)

(1,336

)

(1,252

)

(1,098

)

(1,144

)

(3,201

)

(4,830

)

(161

)

(16

)%

(1,629

)

(51

)%

(46

)

(4

)%

Variable universal life / Universal life

 

(33

)

(74

)

(52

)

(72

)

(46

)

(199

)

(244

)

(13

)

(39

)%

(45

)

(23

)%

26

 

36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

S&P 500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Daily average

 

2,185

 

2,324

 

2,396

 

2,465

 

2,605

 

2,094

 

2,448

 

420

 

19

%

354

 

17

%

140

 

6

%

Period end

 

2,239

 

2,363

 

2,423

 

2,519

 

2,674

 

2,239

 

2,674

 

435

 

19

%

435

 

19

%

155

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Equity Index (WEI) (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Daily average

 

1,596

 

1,695

 

1,752

 

1,803

 

1,901

 

1,530

 

1,788

 

305

 

19

%

258

 

17

%

98

 

5

%

Period end

 

1,637

 

1,724

 

1,774

 

1,847

 

1,948

 

1,637

 

1,948

 

311

 

19

%

311

 

19

%

101

 

5

%

 


(1)

See non-GAAP financial information on pg 33. Non-GAAP financial measure reconciliations can be found on pages 47 and 48.

(2)

Calculated as total equity excluding CIEs divided by common shares outstanding plus common stock equivalents outstanding at period end.

(3)

Calculated as total equity excluding CIEs and AOCI divided by common shares outstanding plus common stock equivalents outstanding at period end.

(4)

Excludes payout annuities.

(5)

Weighted Equity Index is an Ameriprise calculated proxy for equity market movements calculated using a weighted average of the S&P 500, Russell 2000, Russell Midcap and MSCI EAFE indices based on North America distributed equity assets.

NM   Not Meaningful

# Variance equal to or greater than 100%.

 

7



 

Ameriprise Financial, Inc.

Common Share and Capital Summary

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

158.5

 

154.8

 

153.0

 

150.3

 

148.3

 

171.0

 

154.8

 

(10.2

)

(6

)%

(16.2

)

(9

)%

(2.0

)

(1

)%

Repurchases

 

(3.8

)

(2.9

)

(2.8

)

(2.3

)

(1.9

)

(17.5

)

(9.9

)

1.9

 

50

%

7.6

 

43

%

0.4

 

17

%

Issuances

 

0.3

 

2.1

 

0.2

 

1.2

 

0.5

 

1.9

 

4.0

 

0.2

 

67

%

2.1

 

#

 

(0.7

)

(58

)%

Other

 

(0.2

)

(1.0

)

(0.1

)

(0.9

)

(0.3

)

(0.6

)

(2.3

)

(0.1

)

(50

)%

(1.7

)

#

 

0.6

 

67

%

Total common shares outstanding

 

154.8

 

153.0

 

150.3

 

148.3

 

146.6

 

154.8

 

146.6

 

(8.2

)

(5

)%

(8.2

)

(5

)%

(1.7

)

(1

)%

Restricted stock units

 

3.7

 

3.4

 

3.5

 

3.5

 

3.6

 

3.7

 

3.6

 

(0.1

)

(3

)%

(0.1

)

(3

)%

0.1

 

3

%

Total basic common shares outstanding

 

158.5

 

156.4

 

153.8

 

151.8

 

150.2

 

158.5

 

150.2

 

(8.3

)

(5

)%

(8.3

)

(5

)%

(1.6

)

(1

)%

Total potentially dilutive shares

 

2.2

 

2.5

 

2.3

 

2.3

 

2.9

 

2.2

 

2.9

 

0.7

 

32

%

0.7

 

32

%

0.6

 

26

%

Total diluted shares

 

160.7

 

158.9

 

156.1

 

154.1

 

153.1

 

160.7

 

153.1

 

(7.6

)

(5

)%

(7.6

)

(5

)%

(1.0

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Returned to Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

$

121

 

$

121

 

$

129

 

$

129

 

$

123

 

$

489

 

$

502

 

$

2

 

2

%

$

13

 

3

%

$

(6

)

(5

)%

Common stock share repurchases

 

$

402

 

$

357

 

$

352

 

$

333

 

$

302

 

$

1,675

 

$

1,344

 

$

(100

)

(25

)%

$

(331

)

(20

)%

$

(31

)

(9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated Capital (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

$

637

 

$

653

 

$

661

 

$

707

 

$

710

 

$

637

 

$

710

 

$

73

 

11

%

$

73

 

11

%

$

3

 

 

Asset Management

 

1,817

 

1,814

 

1,822

 

1,821

 

1,868

 

1,817

 

1,868

 

51

 

3

%

51

 

3

%

47

 

3

%

Annuities

 

1,968

 

1,991

 

1,956

 

1,928

 

1,933

 

1,968

 

1,933

 

(35

)

(2

)%

(35

)

(2

)%

5

 

 

Protection

 

1,522

 

1,478

 

1,460

 

1,391

 

1,339

 

1,522

 

1,339

 

(183

)

(12

)%

(183

)

(12

)%

(52

)

(4

)%

Corporate & Other

 

2,998

 

2,921

 

2,901

 

2,995

 

2,768

 

2,998

 

2,768

 

(230

)

(8

)%

(230

)

(8

)%

(227

)

(8

)%

Total allocated capital

 

$

8,942

 

$

8,857

 

$

8,800

 

$

8,842

 

$

8,618

 

$

8,942

 

$

8,618

 

$

(324

)

(4

)%

$

(324

)

(4

)%

$

(224

)

(3

)%

 


(1)        Allocated capital equals Ameriprise Financial shareholders’ equity excluding consolidated investment entities less AOCI plus Ameriprise Financial long-term debt excluding fair value of hedges, unamortized discount, debt issuance costs and capital lease obligations.  Allocated capital is not adjusted for non-operating items except for CIEs.

# Variance equal to or greater than 100%.

 

8



 

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2017

 

Segment Results

 

9


 


 

Ameriprise Financial, Inc.

Segment Summary

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Segment Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

1,316

 

$

1,295

 

$

1,348

 

$

1,383

 

$

1,480

 

$

5,036

 

$

5,506

 

$

164

 

12

%

$

470

 

9

%

$

97

 

7

%

Operating expenses

 

1,062

 

1,047

 

1,057

 

1,085

 

1,154

 

4,125

 

4,343

 

92

 

9

%

218

 

5

%

69

 

6

%

Pretax operating earnings

 

$

254

 

$

248

 

$

291

 

$

298

 

$

326

 

$

911

 

$

1,163

 

$

72

 

28

%

$

252

 

28

%

$

28

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

637

 

$

653

 

$

661

 

$

707

 

$

710

 

$

637

 

$

710

 

$

73

 

11

%

$

73

 

11

%

$

3

 

 

Operating return on allocated capital (1)

 

123.9

%

127.6

%

131.9

%

132.5

%

112.6

%

123.9

%

112.6

%

(11.3

)%

 

 

(11.3

)%

 

 

(19.9

)%

 

 

Pretax operating margin

 

19.3

%

19.2

%

21.6

%

21.5

%

22.0

%

18.1

%

21.1

%

2.7

%

 

 

3.0

%

 

 

0.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

761

 

$

726

 

$

748

 

$

778

 

$

825

 

$

2,964

 

$

3,077

 

$

64

 

8

%

$

113

 

4

%

$

47

 

6

%

Operating expenses

 

592

 

576

 

572

 

578

 

611

 

2,343

 

2,337

 

19

 

3

%

(6

)

 

33

 

6

%

Pretax operating earnings

 

$

169

 

$

150

 

$

176

 

$

200

 

$

214

 

$

621

 

$

740

 

$

45

 

27

%

$

119

 

19

%

$

14

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,817

 

$

1,814

 

$

1,822

 

$

1,821

 

$

1,868

 

$

1,817

 

$

1,868

 

$

51

 

3

%

$

51

 

3

%

$

47

 

3

%

Operating return on allocated capital (1)

 

27.8

%

28.5

%

29.3

%

30.5

%

26.2

%

27.8

%

26.2

%

(1.6

)%

 

 

(1.6

)%

 

 

(4.3

)%

 

 

Pretax operating margin

 

22.2

%

20.7

%

23.5

%

25.7

%

25.9

%

21.0

%

24.0

%

3.7

%

 

 

3.0

%

 

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

761

 

$

726

 

$

748

 

$

778

 

$

825

 

$

2,964

 

$

3,077

 

$

64

 

8

%

$

113

 

4

%

$

47

 

6

%

Distribution pass thru revenues

 

(204

)

(206

)

(195

)

(197

)

(203

)

(817

)

(801

)

1

 

 

16

 

2

%

(6

)

(3

)%

Subadvisory and other pass thru revenues

 

(94

)

(92

)

(91

)

(91

)

(94

)

(354

)

(368

)

 

 

(14

)

(4

)%

(3

)

(3

)%

Adjusted operating revenues (2)

 

$

463

 

$

428

 

$

462

 

$

490

 

$

528

 

$

1,793

 

$

1,908

 

$

65

 

14

%

$

115

 

6

%

$

38

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

169

 

$

150

 

$

176

 

$

200

 

$

214

 

$

621

 

$

740

 

$

45

 

27

%

$

119

 

19

%

$

14

 

7

%

Operating net investment income

 

(5

)

(4

)

(6

)

(6

)

(12

)

(14

)

(28

)

(7

)

#

 

(14

)

#

 

(6

)

#

 

Amortization of intangibles

 

5

 

4

 

4

 

4

 

5

 

21

 

17

 

 

 

(4

)

(19

)%

1

 

25

%

Adjusted operating earnings (2)

 

$

169

 

$

150

 

$

174

 

$

198

 

$

207

 

$

628

 

$

729

 

$

38

 

22

%

$

101

 

16

%

$

9

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net pretax operating margin (2)(3)

 

36.5

%

35.0

%

37.7

%

40.4

%

39.2

%

35.0

%

38.2

%

2.7

%

 

 

3.2

%

 

 

(1.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

617

 

$

608

 

$

627

 

$

626

 

$

638

 

$

2,463

 

$

2,499

 

$

21

 

3

%

$

36

 

1

%

$

12

 

2

%

Operating expenses

 

490

 

469

 

485

 

345

 

490

 

2,134

 

1,789

 

 

 

(345

)

(16

)%

145

 

42

%

Pretax operating earnings (loss)

 

$

127

 

$

139

 

$

142

 

$

281

 

$

148

 

$

329

 

$

710

 

$

21

 

17

%

$

381

 

#

 

$

(133

)

(47

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,968

 

$

1,991

 

$

1,956

 

$

1,928

 

$

1,933

 

$

1,968

 

$

1,933

 

$

(35

)

(2

)%

$

(35

)

(2

)%

$

5

 

 

Operating return on allocated capital (1)

 

13.3

%

14.3

%

13.7

%

28.0

%

25.0

%

13.3

%

25.0

%

11.7

%

 

 

11.7

%

 

 

(3.0

)%

 

 

Pretax operating margin

 

20.6

%

22.9

%

22.6

%

44.9

%

23.2

%

13.4

%

28.4

%

2.6

%

 

 

15.0

%

 

 

(21.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Protection

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

548

 

$

521

 

$

517

 

$

478

 

$

528

 

$

2,241

 

$

2,044

 

$

(20

)

(4

)%

$

(197

)

(9

)%

$

50

 

10

%

Operating expenses

 

475

 

458

 

466

 

423

 

481

 

1,978

 

1,828

 

6

 

1

%

(150

)

(8

)%

58

 

14

%

Pretax operating earnings

 

$

73

 

$

63

 

$

51

 

$

55

 

$

47

 

$

263

 

$

216

 

$

(26

)

(36

)%

$

(47

)

(18

)%

$

(8

)

(15

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,522

 

$

1,478

 

$

1,460

 

$

1,391

 

$

1,339

 

$

1,522

 

$

1,339

 

$

(183

)

(12

)%

$

(183

)

(12

)%

$

(52

)

(4

)%

Operating return on allocated capital (1)

 

14.4

%

14.4

%

15.1

%

13.2

%

10.3

%

14.4

%

10.3

%

(4.1

)%

 

 

(4.1

)%

 

 

(2.9

)%

 

 

Pretax operating margin

 

13.3

%

12.1

%

9.9

%

11.5

%

8.9

%

11.7

%

10.6

%

(4.4

)%

 

 

(1.1

)%

 

 

(2.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate & Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate excluding Long Term Care pretax operating loss

 

$

(74

)

$

(81

)

$

(73

)

$

(78

)

$

(121

)

$

(272

)

$

(353

)

$

(47

)

(64

)%

$

(81

)

(30

)%

$

(43

)

(55

)%

Long Term Care pretax operating earnings (loss)

 

$

(14

)

$

1

 

$

(3

)

$

(58

)

$

(13

)

$

(87

)

$

(73

)

$

1

 

7

%

$

14

 

16

%

$

45

 

78

%

 


(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 capital as of the last day of the trailing four quarters and current quarter in the denominator. In the 4th quarter of 2017, the operating effective tax rate reflects a one-time, primarily non-cash accounting adjustment associated with the Tax Cuts and Jobs Act resulting in an effective tax rate of 69.7%.

(2)        See non-GAAP financial information on pg 33.

(3)        Calculated as adjusted operating earnings as a percentage of adjusted operating revenues.

# Variance equal to or greater than 100%.

 

10


 


 

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2017

 

Advice & Wealth Management Segment

 

11



 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Advice & Wealth Management Segment Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

718

 

$

722

 

$

773

 

$

799

 

$

854

 

$

2,707

 

$

3,148

 

$

136

 

19

%

$

441

 

16

%

$

55

 

7

%

Distribution fees

 

540

 

513

 

505

 

515

 

552

 

2,109

 

2,085

 

12

 

2

%

(24

)

(1

)%

37

 

7

%

Net investment income

 

48

 

52

 

58

 

64

 

65

 

186

 

239

 

17

 

35

%

53

 

28

%

1

 

2

%

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

20

 

18

 

24

 

17

 

23

 

73

 

82

 

3

 

15

%

9

 

12

%

6

 

35

%

Total revenues

 

1,326

 

1,305

 

1,360

 

1,395

 

1,494

 

5,075

 

5,554

 

168

 

13

%

479

 

9

%

99

 

7

%

Banking and deposit interest expense

 

10

 

10

 

12

 

12

 

14

 

39

 

48

 

4

 

40

%

9

 

23

%

2

 

17

%

Operating total net revenues

 

1,316

 

1,295

 

1,348

 

1,383

 

1,480

 

5,036

 

5,506

 

164

 

12

%

470

 

9

%

97

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

797

 

777

 

789

 

813

 

866

 

3,072

 

3,245

 

69

 

9

%

173

 

6

%

53

 

7

%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

2

 

2

 

3

 

2

 

2

 

8

 

9

 

 

 

1

 

13

%

 

 

General and administrative expense

 

263

 

268

 

265

 

270

 

286

 

1,045

 

1,089

 

23

 

9

%

44

 

4

%

16

 

6

%

Operating expenses

 

1,062

 

1,047

 

1,057

 

1,085

 

1,154

 

4,125

 

4,343

 

92

 

9

%

218

 

5

%

69

 

6

%

Pretax operating earnings

 

$

254

 

$

248

 

$

291

 

$

298

 

$

326

 

$

911

 

$

1,163

 

$

72

 

28

%

$

252

 

28

%

$

28

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

19.3

%

19.2

%

21.6

%

21.5

%

22.0

%

18.1

%

21.1

%

2.7

%

 

 

3.0

%

 

 

0.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

637

 

$

653

 

$

661

 

$

707

 

$

710

 

$

637

 

$

710

 

$

73

 

11

%

$

73

 

11

%

$

3

 

 

Operating return on allocated capital (1)

 

123.9

%

127.6

%

131.9

%

132.5

%

112.6

%

123.9

%

112.6

%

(11.3

)%

 

 

(11.3

)%

 

 

(19.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brokerage cash balance (2)

 

$

26,765

 

$

26,240

 

$

25,597

 

$

25,483

 

$

26,238

 

$

26,765

 

$

26,238

 

$

(527

)

(2

)%

$

(527

)

(2

)%

$

755

 

3

%

Brokerage sweep fee

 

0.53

%

0.73

%

0.97

%

1.11

%

1.14

%

0.45

%

0.98

%

0.61

%

 

 

0.53

%

 

 

0.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

On-balance sheet deposits

 

$

10,048

 

$

10,328

 

$

10,210

 

$

10,439

 

$

10,316

 

$

10,048

 

$

10,316

 

$

268

 

3

%

$

268

 

3

%

$

(123

)

(1

)%

 


(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 capital as of the last day of the trailing four quarters and current quarter in the denominator. In the 4th quarter of 2017, the operating effective tax rate reflects a one-time, primarily non-cash accounting adjustment associated with the Tax Cuts and Jobs Act resulting in an effective tax rate of 69.7%.

(2)        Brokerage cash includes both off-balance sheet and on-balance sheet deposits.  In the 4th quarter of 2016 through the 4th quarter of 2017, on-balance sheet deposits included in brokerage cash are $4.1B, $4.2B, $4.0B, $4.1B and $3.9B, respectively.

 

12



 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

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

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates and Banking - Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

15

 

$

15

 

$

17

 

$

18

 

$

19

 

$

54

 

$

69

 

$

4

 

27

%

$

15

 

28

%

$

1

 

6

%

Allocated capital

 

$

327

 

$

339

 

$

344

 

$

351

 

$

353

 

$

327

 

$

353

 

$

26

 

8

%

$

26

 

8

%

$

2

 

1

%

Operating return on allocated capital (1)

 

14.7

%

14.9

%

14.6

%

15.5

%

13.2

%

14.7

%

13.2

%

(1.5

)%

 

 

(1.5

)%

 

 

(2.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth Management & Distribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

239

 

$

233

 

$

274

 

$

280

 

$

307

 

$

857

 

$

1,094

 

$

68

 

28

%

$

237

 

28

%

$

27

 

10

%

Allocated capital

 

$

310

 

$

314

 

$

317

 

$

356

 

$

357

 

$

310

 

$

357

 

$

47

 

15

%

$

47

 

15

%

$

1

 

 

Operating return on allocated capital (1)

 

231.0

%

240.5

%

253.1

%

254.1

%

215.6

%

231.0

%

215.6

%

(15.4

)%

 

 

(15.4

)%

 

 

(38.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded financial plan net cash sales

 

$

78

 

$

69

 

$

73

 

$

69

 

$

84

 

$

275

 

$

295

 

$

6

 

8

%

$

20

 

7

%

$

15

 

22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Advisors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee advisors (2)

 

2,007

 

1,997

 

1,992

 

2,209

 

2,210

 

2,007

 

2,210

 

203

 

10

%

203

 

10

%

1

 

 

Franchisee advisors

 

7,668

 

7,671

 

7,648

 

7,681

 

7,686

 

7,668

 

7,686

 

18

 

 

18

 

 

5

 

 

Total financial advisors

 

9,675

 

9,668

 

9,640

 

9,890

 

9,896

 

9,675

 

9,896

 

221

 

2

%

221

 

2

%

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues per financial advisor (in thousands) (3)

 

$

136

 

$

134

 

$

140

 

$

140

 

$

150

 

$

518

 

$

564

 

$

14

 

10

%

$

46

 

9

%

$

10

 

7

%

Operating total net revenues per financial advisor-trailing twelve months (in thousands) (4)

 

$

518

 

$

529

 

$

541

 

$

550

 

$

564

 

$

518

 

$

564

 

$

46

 

9

%

$

46

 

9

%

$

14

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisor Retention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee

 

88.9

%

89.1

%

89.5

%

90.7

%

92.4

%

88.9

%

92.4

%

3.5

%

 

 

3.5

%

 

 

1.7

%

 

 

Franchisee

 

92.8

%

92.7

%

92.4

%

92.7

%

92.8

%

92.8

%

92.8

%

 

 

 

 

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Client Assets (at period end)

 

$

479,209

 

$

498,907

 

$

512,035

 

$

538,662

 

$

559,692

 

$

479,209

 

$

559,692

 

$

80,483

 

17

%

$

80,483

 

17

%

$

21,030

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Wrap Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

197,485

 

$

201,078

 

$

212,887

 

$

222,327

 

$

235,224

 

$

180,488

 

$

201,078

 

$

37,739

 

19

%

$

20,590

 

11

%

$

12,897

 

6

%

Inflows from acquisitions (5)

 

 

 

 

743

 

 

 

743

 

 

 

743

 

 

(743

)

#

 

Other net flows

 

3,310

 

3,944

 

4,451

 

5,382

 

5,013

 

10,184

 

18,790

 

1,703

 

51

%

8,606

 

85

%

(369

)

(7

)%

Net flows

 

3,310

 

3,944

 

4,451

 

6,125

 

5,013

 

10,184

 

19,533

 

1,703

 

51

%

9,349

 

92

%

(1,112

)

(18

)%

Market appreciation (depreciation) and other (6)

 

283

 

7,865

 

4,989

 

6,772

 

7,913

 

10,406

 

27,539

 

7,630

 

#

 

17,133

 

#

 

1,141

 

17

%

Total wrap ending assets

 

$

201,078

 

$

212,887

 

$

222,327

 

$

235,224

 

$

248,150

 

$

201,078

 

$

248,150

 

$

47,072

 

23

%

$

47,072

 

23

%

$

12,926

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory wrap account assets ending balance (7)

 

$

198,946

 

$

210,937

 

$

220,248

 

$

233,036

 

$

245,819

 

$

198,946

 

$

245,819

 

$

46,873

 

24

%

$

46,873

 

24

%

$

12,783

 

5

%

 


(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 capital as of the last day of the trailing four quarters and current quarter in the denominator. In the 4th quarter of 2017, the operating effective tax rate reflects a one-time, primarily non-cash accounting adjustment associated with the Tax Cuts and Jobs Act resulting in an effective tax rate of 69.7%.

(2)        IPI advisors are being included in the employee advisor count.

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

(4)        Trailing twelve months is the sum of the last four quarters.

(5)        Inflows associated with acquisitions that closed during the quarter.

(6)        Included in Market appreciation (depreciation) and other is the change in IPI wrap assets.

(7)        Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts.  Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.

# Variance equal to or greater than 100%.

 

13



 

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2017

 

Asset Management Segment

 

14



 

Ameriprise Financial, Inc.

Asset Management Segment

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Asset Management Segment Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

626

 

$

598

 

$

625

 

$

657

 

$

694

 

$

2,452

 

$

2,574

 

$

68

 

11

%

$

122

 

5

%

$

37

 

6

%

Distribution fees

 

124

 

121

 

112

 

111

 

114

 

487

 

458

 

(10

)

(8

)%

(29

)

(6

)%

3

 

3

%

Net investment income

 

5

 

4

 

6

 

6

 

12

 

14

 

28

 

7

 

#

 

14

 

#

 

6

 

#

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

6

 

3

 

5

 

4

 

5

 

11

 

17

 

(1

)

(17

)%

6

 

55

%

1

 

25

%

Total revenues

 

761

 

726

 

748

 

778

 

825

 

2,964

 

3,077

 

64

 

8

%

113

 

4

%

47

 

6

%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

761

 

726

 

748

 

778

 

825

 

2,964

 

3,077

 

64

 

8

%

113

 

4

%

47

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

257

 

257

 

247

 

246

 

250

 

1,019

 

1,000

 

(7

)

(3

)%

(19

)

(2

)%

4

 

2

%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

5

 

4

 

4

 

4

 

3

 

18

 

15

 

(2

)

(40

)%

(3

)

(17

)%

(1

)

(25

)%

Interest and debt expense

 

5

 

5

 

6

 

5

 

6

 

21

 

22

 

1

 

20

%

1

 

5

%

1

 

20

%

General and administrative expense

 

325

 

310

 

315

 

323

 

352

 

1,285

 

1,300

 

27

 

8

%

15

 

1

%

29

 

9

%

Operating expenses

 

592

 

576

 

572

 

578

 

611

 

2,343

 

2,337

 

19

 

3

%

(6

)

 

33

 

6

%

Pretax operating earnings

 

$

169

 

$

150

 

$

176

 

$

200

 

$

214

 

$

621

 

$

740

 

$

45

 

27

%

$

119

 

19

%

$

14

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

22.2

%

20.7

%

23.5

%

25.7

%

25.9

%

21.0

%

24.0

%

3.7

%

 

 

3.0

%

 

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

761

 

$

726

 

$

748

 

$

778

 

$

825

 

$

2,964

 

$

3,077

 

$

64

 

8

%

$

113

 

4

%

$

47

 

6

%

Distribution pass thru revenues

 

(204

)

(206

)

(195

)

(197

)

(203

)

(817

)

(801

)

1

 

 

16

 

2

%

(6

)

(3

)%

Subadvisory and other pass thru revenues

 

(94

)

(92

)

(91

)

(91

)

(94

)

(354

)

(368

)

 

 

(14

)

(4

)%

(3

)

(3

)%

Adjusted operating revenues (1)

 

$

463

 

$

428

 

$

462

 

$

490

 

$

528

 

$

1,793

 

$

1,908

 

$

65

 

14

%

$

115

 

6

%

$

38

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

169

 

$

150

 

$

176

 

$

200

 

$

214

 

$

621

 

$

740

 

$

45

 

27

%

$

119

 

19

%

$

14

 

7

%

Operating net investment income

 

(5

)

(4

)

(6

)

(6

)

(12

)

(14

)

(28

)

(7

)

#

 

(14

)

#

 

(6

)

#

 

Amortization of intangibles

 

5

 

4

 

4

 

4

 

5

 

21

 

17

 

 

 

(4

)

(19

)%

1

 

25

%

Adjusted operating earnings (1)

 

$

169

 

$

150

 

$

174

 

$

198

 

$

207

 

$

628

 

$

729

 

$

38

 

22

%

$

101

 

16

%

$

9

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net pretax operating margin (1)(2)

 

36.5

%

35.0

%

37.7

%

40.4

%

39.2

%

35.0

%

38.2

%

2.7

%

 

 

3.2

%

 

 

(1.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Fees (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net performance fees

 

$

6

 

$

 

$

2

 

$

8

 

$

16

 

$

14

 

$

26

 

$

10

 

#

 

$

12

 

86

%

$

8

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,817

 

$

1,814

 

$

1,822

 

$

1,821

 

$

1,868

 

$

1,817

 

$

1,868

 

$

51

 

3

%

$

51

 

3

%

$

47

 

3

%

Operating return on allocated capital (4)

 

27.8

%

28.5

%

29.3

%

30.5

%

26.2

%

27.8

%

26.2

%

(1.6

)%

 

 

(1.6

)%

 

 

(4.3

)%

 

 

 


(1)        See non-GAAP financial information on pg 33.

(2)        Calculated as adjusted operating earnings as a percentage of adjusted operating revenues.

(3)        Performance fees, which are net of associated compensation, do not include CLO incentive fees.

(4)        Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator. In the 4th quarter of 2017, the operating effective tax rate reflects a one-time, primarily non-cash accounting adjustment associated with the Tax Cuts and Jobs Act resulting in an effective tax rate of 69.7%.

# Variance equal to or greater than 100%.

 

15



 

Ameriprise Financial, Inc.

Asset Management Segment

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Total Managed Assets by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

$

240,034

 

$

249,805

 

$

257,680

 

$

265,839

 

$

275,417

 

$

240,034

 

$

275,417

 

$

35,383

 

15

%

$

35,383

 

15

%

$

9,578

 

4

%

Fixed income

 

175,945

 

178,365

 

176,318

 

178,006

 

173,571

 

175,945

 

173,571

 

(2,374

)

(1

)%

(2,374

)

(1

)%

(4,435

)

(2

)%

Money market

 

6,320

 

6,110

 

5,494

 

5,887

 

5,362

 

6,320

 

5,362

 

(958

)

(15

)%

(958

)

(15

)%

(525

)

(9

)%

Alternative

 

7,364

 

7,334

 

6,578

 

6,464

 

5,566

 

7,364

 

5,566

 

(1,798

)

(24

)%

(1,798

)

(24

)%

(898

)

(14

)%

Hybrid and other

 

24,750

 

25,417

 

26,579

 

27,757

 

34,642

 

24,750

 

34,642

 

9,892

 

40

%

9,892

 

40

%

6,885

 

25

%

Total managed assets by type

 

$

454,413

 

$

467,031

 

$

472,649

 

$

483,953

 

$

494,558

 

$

454,413

 

$

494,558

 

$

40,145

 

9

%

$

40,145

 

9

%

$

10,605

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Managed Assets by Type (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

$

240,327

 

$

245,539

 

$

255,259

 

$

261,704

 

$

270,533

 

$

242,718

 

$

258,370

 

$

30,206

 

13

%

$

15,652

 

6

%

$

8,829

 

3

%

Fixed income

 

178,776

 

177,398

 

177,247

 

177,300

 

176,508

 

179,025

 

177,009

 

(2,268

)

(1

)%

(2,016

)

(1

)%

(792

)

 

Money market

 

6,494

 

5,976

 

5,845

 

5,826

 

5,539

 

7,092

 

5,789

 

(955

)

(15

)%

(1,303

)

(18

)%

(287

)

(5

)%

Alternative

 

7,091

 

7,364

 

7,126

 

6,524

 

6,092

 

7,516

 

6,773

 

(999

)

(14

)%

(743

)

(10

)%

(432

)

(7

)%

Hybrid and other

 

24,676

 

25,141

 

26,089

 

27,157

 

31,169

 

24,418

 

27,574

 

6,493

 

26

%

3,156

 

13

%

4,012

 

15

%

Total average managed assets by type

 

$

457,364

 

$

461,418

 

$

471,566

 

$

478,511

 

$

489,841

 

$

460,769

 

$

475,515

 

$

32,477

 

7

%

$

14,746

 

3

%

$

11,330

 

2

%

 


(1)        Average ending balances are calculated using the average of the prior period’s ending balance and all months in the current period.

 

16



 

Ameriprise Financial, Inc.

Asset Management Segment

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Managed Assets Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Retail Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

266,025

 

$

259,919

 

$

267,320

 

$

272,902

 

$

280,749

 

$

263,866

 

$

259,919

 

$

14,724

 

6

%

$

(3,947

)

(1

)%

$

7,847

 

3

%

Inflows

 

13,910

 

14,835

 

12,256

 

10,916

 

12,917

 

52,242

 

50,924

 

(993

)

(7

)%

(1,318

)

(3

)%

2,001

 

18

%

Inflows from acquisitions (1)

 

 

 

 

 

 

976

 

 

 

 

(976

)

#

 

 

 

Outflows

 

(17,772

)

(18,178

)

(15,161

)

(12,329

)

(14,332

)

(63,459

)

(60,000

)

3,440

 

19

%

3,459

 

5

%

(2,003

)

(16

)%

Net VP/VIT fund flows

 

(743

)

(960

)

(847

)

(750

)

(773

)

(2,048

)

(3,330

)

(30

)

(4

)%

(1,282

)

(63

)%

(23

)

(3

)%

Net new flows

 

(4,605

)

(4,303

)

(3,752

)

(2,163

)

(2,188

)

(12,289

)

(12,406

)

2,417

 

52

%

(117

)

(1

)%

(25

)

(1

)%

Reinvested dividends

 

4,398

 

424

 

2,388

 

489

 

6,530

 

8,113

 

9,831

 

2,132

 

48

%

1,718

 

21

%

6,041

 

#

 

Net flows

 

(207

)

(3,879

)

(1,364

)

(1,674

)

4,342

 

(4,176

)

(2,575

)

4,549

 

#

 

1,601

 

38

%

6,016

 

#

 

Distributions

 

(5,309

)

(600

)

(2,802

)

(689

)

(7,640

)

(9,860

)

(11,731

)

(2,331

)

(44

)%

(1,871

)

(19

)%

(6,951

)

#

 

Market appreciation (depreciation) and other

 

1,322

 

11,383

 

7,989

 

9,064

 

9,975

 

15,226

 

38,411

 

8,653

 

#

 

23,185

 

#

 

911

 

10

%

Foreign currency translation (2)

 

(1,912

)

497

 

1,759

 

1,146

 

377

 

(5,137

)

3,779

 

2,289

 

#

 

8,916

 

#

 

(769

)

(67

)%

Total ending assets

 

259,919

 

267,320

 

272,902

 

280,749

 

287,803

 

259,919

 

287,803

 

27,884

 

11

%

27,884

 

11

%

7,054

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of total retail assets sub-advised

 

16.9

%

17.0

%

17.2

%

17.2

%

17.9

%

16.9

%

17.9

%

1.0

%

 

 

1.0

%

 

 

0.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

201,745

 

194,494

 

199,711

 

199,747

 

203,204

 

208,022

 

194,494

 

1,459

 

1

%

(13,528

)

(7

)%

3,457

 

2

%

Inflows

 

5,562

 

7,124

 

5,930

 

5,805

 

5,805

 

24,051

 

24,664

 

243

 

4

%

613

 

3

%

 

 

Inflows from acquisitions (1)

 

 

 

 

 

5,439

 

 

5,439

 

5,439

 

 

5,439

 

 

5,439

 

 

Outflows

 

(7,450

)

(8,874

)

(13,308

)

(8,801

)

(13,229

)

(38,510

)

(44,212

)

(5,779

)

(78

)%

(5,702

)

(15

)%

(4,428

)

(50

)%

Net flows

 

(1,888

)

(1,750

)

(7,378

)

(2,996

)

(1,985

)

(14,459

)

(14,109

)

(97

)

(5

)%

350

 

2

%

1,011

 

34

%

Market appreciation (depreciation) and other (3)(4)

 

(1,293

)

5,958

 

3,883

 

4,052

 

4,863

 

13,540

 

18,756

 

6,156

 

#

 

5,216

 

39

%

811

 

20

%

Foreign currency translation (2)

 

(4,070

)

1,009

 

3,531

 

2,401

 

673

 

(12,609

)

7,614

 

4,743

 

#

 

20,223

 

#

 

(1,728

)

(72

)%

Total ending assets

 

194,494

 

199,711

 

199,747

 

203,204

 

206,755

 

194,494

 

206,755

 

12,261

 

6

%

12,261

 

6

%

3,551

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total managed assets

 

$

454,413

 

$

467,031

 

$

472,649

 

$

483,953

 

$

494,558

 

$

454,413

 

$

494,558

 

$

40,145

 

9

%

$

40,145

 

9

%

$

10,605

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net flows

 

$

(2,095

)

$

(5,629

)

$

(8,742

)

$

(4,670

)

$

2,357

 

$

(18,635

)

$

(16,684

)

$

4,452

 

#

 

$

1,951

 

10

%

$

7,027

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Former Parent Company Related (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail net new flows

 

$

(712

)

$

(920

)

$

(765

)

$

(570

)

$

(713

)

$

(1,325

)

$

(2,968

)

$

(1

)

 

$

(1,643

)

#

 

$

(143

)

(25

)%

Institutional net new flows

 

(1,298

)

(1,692

)

(6,314

)

(2,411

)

(1,819

)

(8,917

)

(12,236

)

(521

)

(40

)%

(3,319

)

(37

)%

592

 

25

%

Total net new flows

 

$

(2,010

)

$

(2,612

)

$

(7,079

)

$

(2,981

)

$

(2,532

)

$

(10,242

)

$

(15,204

)

$

(522

)

(26

)%

$

(4,962

)

(48

)%

$

449

 

15

%

 


(1)        Inflows associated with acquisitions that closed during the quarter.

(2)        Amounts represent local currency to US dollar translation for reporting purposes.

(3)        Included in Market appreciation (depreciation) and other for Global Institutional in the 4th quarter of 2016 are ($0.4B) due to the transfer of assets from Separately Managed Accounts (SMAs) to Unified Managed Accounts (UMAs).

(4)        Included in Market appreciation (depreciation) and other for Global Institutional is the change in the affiliated general account balance.

(5)        Former parent company related assets and net new flows are included in the rollforwards above.

# Variance equal to or greater than 100%.

 

17



 

Ameriprise Financial, Inc.

Asset Management Segment - Columbia

Fourth Quarter 2017

 

Mutual Fund Rankings in top 2 Lipper Quartiles

 

 

 

 

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

Domestic Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

56

%

69

%

78

%

72

%

69

%

 

 

3 year

 

75

%

75

%

72

%

75

%

75

%

 

 

5 year

 

71

%

71

%

78

%

78

%

69

%

Asset weighted

 

1 year

 

41

%

67

%

86

%

68

%

73

%

 

 

3 year

 

81

%

79

%

75

%

82

%

83

%

 

 

5 year

 

75

%

79

%

83

%

82

%

80

%

International Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

20

%

45

%

60

%

75

%

75

%

 

 

3 year

 

55

%

55

%

60

%

55

%

60

%

 

 

5 year

 

70

%

70

%

75

%

75

%

70

%

Asset weighted

 

1 year

 

12

%

33

%

41

%

56

%

52

%

 

 

3 year

 

44

%

44

%

48

%

44

%

47

%

 

 

5 year

 

47

%

48

%

51

%

55

%

54

%

Taxable Fixed Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

72

%

78

%

72

%

72

%

67

%

 

 

3 year

 

76

%

76

%

72

%

78

%

83

%

 

 

5 year

 

76

%

82

%

82

%

76

%

82

%

Asset weighted

 

1 year

 

75

%

70

%

73

%

74

%

69

%

 

 

3 year

 

83

%

83

%

82

%

83

%

89

%

 

 

5 year

 

86

%

88

%

89

%

87

%

89

%

Tax Exempt Fixed Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

74

%

84

%

53

%

74

%

79

%

 

 

3 year

 

89

%

89

%

89

%

89

%

89

%

 

 

5 year

 

100

%

100

%

100

%

100

%

100

%

Asset weighted

 

1 year

 

59

%

97

%

38

%

60

%

76

%

 

 

3 year

 

86

%

92

%

98

%

98

%

93

%

 

 

5 year

 

100

%

100

%

100

%

100

%

100

%

Asset Allocation Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

31

%

62

%

54

%

54

%

62

%

 

 

3 year

 

100

%

90

%

100

%

90

%

80

%

 

 

5 year

 

75

%

88

%

78

%

78

%

78

%

Asset weighted

 

1 year

 

15

%

48

%

47

%

47

%

51

%

 

 

3 year

 

100

%

100

%

100

%

94

%

94

%

 

 

5 year

 

82

%

98

%

92

%

93

%

94

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of 4- or 5-star Morningstar rated funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall

 

 

 

51

 

49

 

54

 

51

 

52

 

3 year

 

 

 

45

 

46

 

55

 

56

 

56

 

5 year

 

 

 

44

 

46

 

46

 

49

 

50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of 4- or 5-star Morningstar rated funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall

 

 

 

54

%

52

%

56

%

50

%

51

%

3 year

 

 

 

48

%

48

%

57

%

55

%

55

%

5 year

 

 

 

47

%

49

%

49

%

49

%

51

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of 4- or 5-star Morningstar rated assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall

 

 

 

64

%

63

%

65

%

58

%

60

%

3 year

 

 

 

64

%

68

%

72

%

66

%

63

%

5 year

 

 

 

53

%

63

%

56

%

57

%

59

%

 

Mutual fund performance rankings are based on the performance of Class Z fund shares for Columbia branded mutual funds.  Only funds with Class Z shares are included.

 

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

 

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

 

18



 

Ameriprise Financial, Inc.

Asset Management Segment - Threadneedle

Fourth Quarter 2017

 

Retail Fund Rankings in Top 2 Morningstar Quartiles or Above Index Benchmark

 

 

 

 

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

26

%

30

%

54

%

48

%

59

%

 

 

3 year

 

58

%

68

%

74

%

72

%

64

%

 

 

5 year

 

72

%

70

%

65

%

72

%

63

%

Asset weighted

 

1 year

 

40

%

42

%

65

%

50

%

56

%

 

 

3 year

 

67

%

79

%

80

%

79

%

60

%

 

 

5 year

 

67

%

66

%

54

%

59

%

63

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

70

%

72

%

76

%

76

%

83

%

 

 

3 year

 

59

%

69

%

64

%

79

%

82

%

 

 

5 year

 

65

%

64

%

72

%

76

%

72

%

Asset weighted

 

1 year

 

68

%

79

%

85

%

85

%

93

%

 

 

3 year

 

74

%

90

%

84

%

90

%

95

%

 

 

5 year

 

69

%

75

%

80

%

92

%

88

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocation (Managed) Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

67

%

44

%

67

%

78

%

67

%

 

 

3 year

 

100

%

100

%

100

%

89

%

78

%

 

 

5 year

 

83

%

100

%

83

%

86

%

100

%

Asset weighted

 

1 year

 

70

%

32

%

44

%

61

%

60

%

 

 

3 year

 

100

%

100

%

100

%

94

%

97

%

 

 

5 year

 

92

%

100

%

92

%

93

%

100

%

 

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.

 

19



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2017

 

Annuities Segment

 

20



 

Ameriprise Financial, Inc.

Annuities Segment

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities Segment Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

183

 

$

187

 

$

190

 

$

196

 

$

199

 

$

732

 

$

772

 

$

16

 

9

%

$

40

 

5

%

$

3

 

2

%

Distribution fees

 

89

 

87

 

92

 

91

 

94

 

349

 

364

 

5

 

6

%

15

 

4

%

3

 

3

%

Net investment income

 

187

 

179

 

175

 

173

 

170

 

760

 

697

 

(17

)

(9

)%

(63

)

(8

)%

(3

)

(2

)%

Premiums

 

27

 

27

 

33

 

24

 

32

 

116

 

116

 

5

 

19

%

 

 

8

 

33

%

Other revenues

 

131

 

128

 

137

 

142

 

143

 

506

 

550

 

12

 

9

%

44

 

9

%

1

 

1

%

Total revenues

 

617

 

608

 

627

 

626

 

638

 

2,463

 

2,499

 

21

 

3

%

36

 

1

%

12

 

2

%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

617

 

608

 

627

 

626

 

638

 

2,463

 

2,499

 

21

 

3

%

36

 

1

%

12

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

107

 

102

 

107

 

105

 

114

 

423

 

428

 

7

 

7

%

5

 

1

%

9

 

9

%

Interest credited to fixed accounts

 

118

 

118

 

118

 

121

 

116

 

478

 

473

 

(2

)

(2

)%

(5

)

(1

)%

(5

)

(4

)%

Benefits, claims, losses and settlement expenses

 

152

 

143

 

149

 

19

 

156

 

780

 

467

 

4

 

3

%

(313

)

(40

)%

137

 

#

 

Amortization of deferred acquisition costs

 

50

 

47

 

48

 

40

 

46

 

209

 

181

 

(4

)

(8

)%

(28

)

(13

)%

6

 

15

%

Interest and debt expense

 

9

 

8

 

9

 

9

 

9

 

33

 

35

 

 

 

2

 

6

%

 

 

General and administrative expense

 

54

 

51

 

54

 

51

 

49

 

211

 

205

 

(5

)

(9

)%

(6

)

(3

)%

(2

)

(4

)%

Operating expenses

 

490

 

469

 

485

 

345

 

490

 

2,134

 

1,789

 

 

 

(345

)

(16

)%

145

 

42

%

Pretax operating earnings

 

$

127

 

$

139

 

$

142

 

$

281

 

$

148

 

$

329

 

$

710

 

$

21

 

17

%

$

381

 

#

 

$

(133

)

(47

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

20.6

%

22.9

%

22.6

%

44.9

%

23.2

%

13.4

%

28.4

%

2.6

%

 

 

15.0

%

 

 

(21.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,968

 

$

1,991

 

$

1,956

 

$

1,928

 

$

1,933

 

$

1,968

 

$

1,933

 

$

(35

)

(2

)%

$

(35

)

(2

)%

$

5

 

 

Operating return on allocated capital (1)

 

13.3

%

14.3

%

13.7

%

28.0

%

25.0

%

13.3

%

25.0

%

11.7

%

 

 

11.7

%

 

 

(3.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market impact on variable annuity guaranteed benefits (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk margin and nonperformance spread impact

 

$

(115

)

$

(22

)

$

(3

)

$

(7

)

$

13

 

$

123

 

$

(19

)

$

128

 

#

 

$

(142

)

#

 

$

20

 

#

 

Other

 

(23

)

(41

)

(77

)

(48

)

(47

)

(339

)

(213

)

(24

)

#

 

126

 

37

%

1

 

2

%

Total VA guaranteed benefit impact excluded from operating earnings

 

$

(138

)

$

(63

)

$

(80

)

$

(55

)

$

(34

)

$

(216

)

$

(232

)

$

104

 

75

%

$

(16

)

(7

)%

$

21

 

38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market impact on fixed indexed annuity benefits (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk margin and nonperformance spread impact

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed indexed annuity benefit impact excluded from operating earnings

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total annuity net flows (4)

 

$

(983

)

$

(1,336

)

$

(1,252

)

$

(1,098

)

$

(1,144

)

$

(3,201

)

$

(4,830

)

$

(161

)

(16

)%

$

(1,629

)

(51

)%

$

(46

)

(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 capital as of the last day of the trailing four quarters and current quarter in the denominator. In the 4th quarter of 2017, the operating effective tax rate reflects a one-time, primarily non-cash accounting adjustment associated with the Tax Cuts and Jobs Act resulting in an effective tax rate of 69.7%.

(2)        Guaranteed Minimum Withdrawal Benefit (GMWB) and Guaranteed Minimum Accumulation Benefit (GMAB) only, net of variable annuity guarantee hedges, DSIC and DAC amortization.

(3)        Market impact on fixed indexed annuity benefits, net of hedges and the related DAC amortization.

(4)        Excludes payout annuities.

#            Variance equal to or greater than 100%.

 

21



 

Ameriprise Financial, Inc.

Annuities Segment

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

107

 

$

116

 

$

127

 

$

262

 

$

134

 

$

228

 

$

639

 

$

27

 

25

%

$

411

 

#

 

$

(128

)

(49

)%

Allocated capital (1)

 

$

650

 

$

650

 

$

650

 

$

650

 

$

650

 

$

650

 

$

650

 

$

 

 

$

 

 

$

 

 

Operating return on allocated capital (2)

 

26.6

%

29.7

%

30.0

%

74.9

%

67.5

%

26.6

%

67.5

%

40.9

%

 

 

40.9

%

 

 

(7.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Annuities (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

20

 

$

23

 

$

15

 

$

19

 

$

14

 

$

101

 

$

71

 

$

(6

)

(30

)%

$

(30

)

(30

)%

$

(5

)

(26

)%

Allocated capital

 

$

1,318

 

$

1,341

 

$

1,306

 

$

1,278

 

$

1,283

 

$

1,318

 

$

1,283

 

$

(35

)

(3

)%

$

(35

)

(3

)%

$

5

 

 

Operating return on allocated capital (2)

 

6.5

%

6.5

%

5.6

%

4.7

%

3.8

%

6.5

%

3.8

%

(2.7

)%

 

 

(2.7

)%

 

 

(0.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

75,866

 

$

74,817

 

$

76,365

 

$

77,397

 

$

78,654

 

$

74,244

 

$

74,817

 

$

2,788

 

4

%

$

573

 

1

%

$

1,257

 

2

%

Deposits

 

1,117

 

948

 

1,046

 

1,002

 

1,131

 

4,594

 

4,127

 

14

 

1

%

(467

)

(10

)%

129

 

13

%

Withdrawals and terminations

 

(1,849

)

(2,018

)

(2,055

)

(1,887

)

(2,029

)

(6,799

)

(7,989

)

(180

)

(10

)%

(1,190

)

(18

)%

(142

)

(8

)%

Net flows

 

(732

)

(1,070

)

(1,009

)

(885

)

(898

)

(2,205

)

(3,862

)

(166

)

(23

)%

(1,657

)

(75

)%

(13

)

(1

)%

Investment performance and interest credited

 

(317

)

2,618

 

2,041

 

2,142

 

2,584

 

2,778

 

9,385

 

2,901

 

#

 

6,607

 

#

 

442

 

21

%

Total ending balance - contract accumulation values

 

$

74,817

 

$

76,365

 

$

77,397

 

$

78,654

 

$

80,340

 

$

74,817

 

$

80,340

 

$

5,523

 

7

%

$

5,523

 

7

%

$

1,686

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable annuities fixed sub-accounts

 

$

5,211

 

$

5,212

 

$

5,203

 

$

5,187

 

$

5,166

 

$

5,211

 

$

5,166

 

$

(45

)

(1

)%

$

(45

)

(1

)%

$

(21

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Deferred Annuities Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

10,163

 

$

9,991

 

$

9,800

 

$

9,631

 

$

9,492

 

$

10,673

 

$

9,991

 

$

(671

)

(7

)%

$

(682

)

(6

)%

$

(139

)

(1

)%

Deposits

 

34

 

43

 

44

 

33

 

33

 

191

 

153

 

(1

)

(3

)%

(38

)

(20

)%

 

 

Withdrawals and terminations

 

(285

)

(309

)

(287

)

(246

)

(279

)

(1,187

)

(1,121

)

6

 

2

%

66

 

6

%

(33

)

(13

)%

Net flows

 

(251

)

(266

)

(243

)

(213

)

(246

)

(996

)

(968

)

5

 

2

%

28

 

3

%

(33

)

(15

)%

Policyholder interest credited

 

79

 

75

 

74

 

74

 

74

 

314

 

297

 

(5

)

(6

)%

(17

)

(5

)%

 

 

Total ending balance - contract accumulation values

 

$

9,991

 

$

9,800

 

$

9,631

 

$

9,492

 

$

9,320

 

$

9,991

 

$

9,320

 

$

(671

)

(7

)%

$

(671

)

(7

)%

$

(172

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized interest

 

$

1

 

$

1

 

$

 

$

1

 

$

 

$

3

 

$

2

 

$

(1

)

#

 

$

(1

)

(33

)%

$

(1

)

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payout Annuities Reserve Balance

 

$

2,096

 

$

2,090

 

$

2,099

 

$

2,091

 

$

2,099

 

$

2,096

 

$

2,099

 

$

3

 

 

$

3

 

 

$

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Equivalent Spread - Fixed Deferred Annuities (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross rate of return on invested assets (5)

 

4.6

%

4.4

%

4.3

%

4.3

%

4.2

%

4.6

%

4.3

%

(0.4

)%

 

 

(0.3

)%

 

 

(0.1

)%

 

 

Crediting rate excluding capitalized interest

 

(3.1

)%

(3.1

)%

(3.1

)%

(3.1

)%

(3.1

)%

(3.0

)%

(3.1

)%

 

 

 

(0.1

)%

 

 

 

 

 

Tax equivalent margin spread

 

1.5

%

1.3

%

1.2

%

1.2

%

1.1

%

1.6

%

1.2

%

(0.4

)%

 

 

(0.4

)%

 

 

(0.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Variable Annuities DAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,670

 

$

1,724

 

$

1,726

 

$

1,729

 

$

1,737

 

$

1,722

 

$

1,724

 

$

67

 

4

%

$

2

 

 

$

8

 

 

Capitalization

 

41

 

34

 

40

 

39

 

43

 

165

 

156

 

2

 

5

%

(9

)

(5

)%

4

 

10

%

Non-operating amortization

 

37

 

9

 

9

 

6

 

2

 

31

 

26

 

(35

)

(95

)%

(5

)

(16

)%

(4

)

(67

)%

Amortization per income statement

 

(45

)

(42

)

(43

)

(36

)

(41

)

(192

)

(162

)

4

 

9

%

30

 

16

%

(5

)

(14

)%

Other

 

21

 

1

 

(3

)

(1

)

6

 

(2

)

3

 

(15

)

(71

)%

5

 

#

 

7

 

#

 

Total ending balance

 

$

1,724

 

$

1,726

 

$

1,729

 

$

1,737

 

$

1,747

 

$

1,724

 

$

1,747

 

$

23

 

1

%

$

23

 

1

%

$

10

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Deferred Annuities DAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

56

 

$

76

 

$

74

 

$

68

 

$

67

 

$

87

 

$

76

 

$

11

 

20

%

$

(11

)

(13

)%

$

(1

)

(1

)%

Capitalization

 

 

1

 

 

1

 

 

3

 

2

 

 

 

(1

)

(33

)%

(1

)

#

 

Non-operating amortization

 

 

(1

)

 

 

 

 

(1

)

 

 

(1

)

 

 

 

Amortization per income statement

 

(5

)

(5

)

(5

)

(4

)

(5

)

(17

)

(19

)

 

 

(2

)

(12

)%

(1

)

(25

)%

Other

 

25

 

3

 

(1

)

2

 

9

 

3

 

13

 

(16

)

(64

)%

10

 

#

 

7

 

#

 

Total ending balance

 

$

76

 

$

74

 

$

68

 

$

67

 

$

71

 

$

76

 

$

71

 

$

(5

)

(7

)%

$

(5

)

(7

)%

$

4

 

6

%

 


(1)        The variable annuity allocated capital calculation takes into account the capital necessary to support the business, recognizing the established reserves and potential future interest rate changes.

(2)        Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator. In the 4th quarter of 2017, the operating effective tax rate reflects a one-time, primarily non-cash accounting adjustment associated with the Tax Cuts and Jobs Act resulting in an effective tax rate of 69.7%.

(3)        Includes payout annuities.

(4)        Attributable to interest sensitive products only, which has been approximately 99% of the total ending fixed deferred annuities accumulation values in the periods reported.  The asset earnings rate is a calculated yield based on specifically assigned assets.

(5)        In the 4th quarter of 2016 through the 4th quarter of 2017, the Gross rates of return on invested assets were impacted by outstanding repurchase agreements.  Without these positions, the Gross rates of return on invested assets would have been 4.5%, 4.3%, 4.2%, 4.2% and 4.2% respectively.

#            Variance equal to or greater than 100%.

 

22



 

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2017

 

Protection Segment

 

23



 

Ameriprise Financial, Inc.

Protection Segment

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Protection Segment Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

13

 

$

13

 

$

10

 

$

12

 

$

13

 

$

51

 

$

48

 

$

 

 

$

(3

)

(6

)%

$

1

 

8

%

Distribution fees

 

26

 

25

 

25

 

24

 

27

 

98

 

101

 

1

 

4

%

3

 

3

%

3

 

13

%

Net investment income

 

83

 

85

 

82

 

86

 

85

 

330

 

338

 

2

 

2

%

8

 

2

%

(1

)

(1

)%

Premiums

 

327

 

294

 

297

 

305

 

308

 

1,286

 

1,204

 

(19

)

(6

)%

(82

)

(6

)%

3

 

1

%

Other revenues

 

99

 

104

 

103

 

51

 

95

 

476

 

353

 

(4

)

(4

)%

(123

)

(26

)%

44

 

86

%

Total revenues

 

548

 

521

 

517

 

478

 

528

 

2,241

 

2,044

 

(20

)

(4

)%

(197

)

(9

)%

50

 

10

%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

548

 

521

 

517

 

478

 

528

 

2,241

 

2,044

 

(20

)

(4

)%

(197

)

(9

)%

50

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

20

 

17

 

16

 

17

 

18

 

70

 

68

 

(2

)

(10

)%

(2

)

(3

)%

1

 

6

%

Interest credited to fixed accounts

 

45

 

44

 

47

 

47

 

48

 

175

 

186

 

3

 

7

%

11

 

6

%

1

 

2

%

Benefits, claims, losses and settlement expenses

 

310

 

297

 

313

 

278

 

321

 

1,325

 

1,209

 

11

 

4

%

(116

)

(9

)%

43

 

15

%

Amortization of deferred acquisition costs

 

31

 

28

 

29

 

13

 

26

 

138

 

96

 

(5

)

(16

)%

(42

)

(30

)%

13

 

#

 

Interest and debt expense

 

7

 

6

 

6

 

7

 

6

 

25

 

25

 

(1

)

(14

)%

 

 

(1

)

(14

)%

General and administrative expense

 

62

 

66

 

55

 

61

 

62

 

245

 

244

 

 

 

(1

)

 

1

 

2

%

Operating expenses

 

475

 

458

 

466

 

423

 

481

 

1,978

 

1,828

 

6

 

1

%

(150

)

(8

)%

58

 

14

%

Pretax operating earnings

 

$

73

 

$

63

 

$

51

 

$

55

 

$

47

 

$

263

 

$

216

 

$

(26

)

(36

)%

$

(47

)

(18

)%

$

(8

)

(15

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

13.3

%

12.1

%

9.9

%

11.5

%

8.9

%

11.7

%

10.6

%

(4.4

)%

 

 

(1.1

)%

 

 

(2.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,522

 

$

1,478

 

$

1,460

 

$

1,391

 

$

1,339

 

$

1,522

 

$

1,339

 

$

(183

)

(12

)%

$

(183

)

(12

)%

$

(52

)

(4

)%

Operating return on allocated capital (1)

 

14.4

%

14.4

%

15.1

%

13.2

%

10.3

%

14.4

%

10.3

%

(4.1

)%

 

 

(4.1

)%

 

 

(2.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market impact on indexed universal life benefits (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk margin and nonperformance spread impact

 

$

8

 

$

3

 

$

6

 

$

8

 

$

(3

)

$

(7

)

$

14

 

$

(11

)

#

 

$

21

 

#

 

$

(11

)

#

 

Other

 

(3

)

(3

)

(12

)

(18

)

23

 

43

 

(10

)

26

 

#

 

(53

)

#

 

41

 

#

 

Total market impact on indexed universal life benefits excluded from operating earnings

 

$

5

 

$

 

$

(6

)

$

(10

)

$

20

 

$

36

 

$

4

 

$

15

 

#

 

$

(32

)

(89

)%

$

30

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life and Health (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

63

 

$

68

 

$

69

 

$

48

 

$

73

 

$

308

 

$

258

 

$

10

 

16

%

$

(50

)

(16

)%

$

25

 

52

%

Allocated capital

 

$

817

 

$

817

 

$

800

 

$

769

 

$

726

 

$

817

 

$

726

 

$

(91

)

(11

)%

$

(91

)

(11

)%

$

(43

)

(6

)%

Operating return on allocated capital (1)

 

31.6

%

30.5

%

29.9

%

24.7

%

21.4

%

31.6

%

21.4

%

(10.2

)%

 

 

(10.2

)%

 

 

(3.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto and Home Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings (loss)

 

$

10

 

$

(5

)

$

(18

)

$

7

 

$

(26

)

$

(45

)

$

(42

)

$

(36

)

#

 

$

3

 

7

%

$

(33

)

#

 

Allocated capital

 

$

705

 

$

661

 

$

660

 

$

622

 

$

613

 

$

705

 

$

613

 

$

(92

)

(13

)%

$

(92

)

(13

)%

$

(9

)

(1

)%

Operating return on allocated capital (1)

 

(5.1

)%

(4.3

)%

(2.4

)%

(0.6

)%

(3.1

)%

(5.1

)%

(3.1

)%

2.0

%

 

 

2.0

%

 

 

(2.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Auto and Home catastrophe losses

 

$

15

 

$

25

 

$

44

 

$

15

 

$

38

 

$

104

 

$

122

 

$

23

 

#

 

$

18

 

17

%

$

23

 

#

 

 


(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 capital as of the last day of the trailing four quarters and current quarter in the denominator. In the 4th quarter of 2017, the operating effective tax rate reflects a one-time, primarily non-cash accounting adjustment associated with the Tax Cuts and Jobs Act resulting in an effective tax rate of 69.7%.

(2)      Market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual.

(3)      Life and health includes captive insurance.

# Variance equal to or greater than 100%.

 

24



 

Ameriprise Financial, Inc.

Protection Segment

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL (1)

 

$

88

 

$

65

 

$

78

 

$

72

 

$

84

 

$

290

 

$

299

 

$

(4

)

(5

)%

$

9

 

3

%

$

12

 

17

%

Term and whole life

 

2

 

2

 

2

 

2

 

2

 

9

 

8

 

 

 

(1

)

(11

)%

 

 

Disability insurance

 

1

 

1

 

1

 

1

 

1

 

4

 

4

 

 

 

 

 

 

 

Auto and home

 

259

 

271

 

283

 

305

 

270

 

1,085

 

1,129

 

11

 

4

%

44

 

4

%

(35

)

(11

)%

Total cash sales

 

$

350

 

$

339

 

$

364

 

$

380

 

$

357

 

$

1,388

 

$

1,440

 

$

7

 

2

%

$

52

 

4

%

$

(23

)

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL Policyholder Account Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

11,461

 

$

11,511

 

$

11,783

 

$

12,006

 

$

12,235

 

$

11,170

 

$

11,511

 

$

774

 

7

%

$

341

 

3

%

$

229

 

2

%

Premiums and deposits

 

269

 

245

 

256

 

247

 

268

 

1,000

 

1,016

 

(1

)

 

16

 

2

%

21

 

9

%

Investment performance and interest

 

82

 

348

 

275

 

300

 

346

 

539

 

1,269

 

264

 

#

 

730

 

#

 

46

 

15

%

Withdrawals and surrenders

 

(302

)

(319

)

(308

)

(319

)

(314

)

(1,199

)

(1,260

)

(12

)

(4

)%

(61

)

(5

)%

5

 

2

%

Other

 

1

 

(2

)

 

1

 

(1

)

1

 

(2

)

(2

)

#

 

(3

)

#

 

(2

)

#

 

Total ending balance

 

$

11,511

 

$

11,783

 

$

12,006

 

$

12,235

 

$

12,534

 

$

11,511

 

$

12,534

 

$

1,023

 

9

%

$

1,023

 

9

%

$

299

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums by Product

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term and whole life

 

$

11

 

$

11

 

$

11

 

$

11

 

$

11

 

$

45

 

$

44

 

$

 

 

$

(1

)

(2

)%

$

 

 

Disability insurance

 

36

 

35

 

35

 

36

 

35

 

146

 

141

 

(1

)

(3

)%

(5

)

(3

)%

(1

)

(3

)%

Auto and home

 

275

 

242

 

244

 

252

 

255

 

1,074

 

993

 

(20

)

(7

)%

(81

)

(8

)%

3

 

1

%

Intercompany premiums

 

5

 

6

 

7

 

6

 

7

 

21

 

26

 

2

 

40

%

5

 

24

%

1

 

17

%

Total premiums by product

 

$

327

 

$

294

 

$

297

 

$

305

 

$

308

 

$

1,286

 

$

1,204

 

$

(19

)

(6

)%

$

(82

)

(6

)%

$

3

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto and Home Insurance Details

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy count (thousands)

 

943

 

940

 

937

 

939

 

942

 

943

 

942

 

(1

)

 

(1

)

 

3

 

 

Catastrophe loss ratio

 

4.4

%

9.4

%

16.0

%

5.8

%

14.9

%

9.4

%

11.5

%

10.5

%

 

 

2.1

%

 

 

9.1

%

 

 

Non-catastrophe /other loss ratio

 

79.6

%

78.7

%

80.1

%

80.3

%

83.6

%

81.8

%

80.7

%

4.0

%

 

 

(1.1

)%

 

 

3.3

%

 

 

Expense ratio

 

17.7

%

20.0

%

17.2

%

16.9

%

17.2

%

18.3

%

17.8

%

(0.5

)%

 

 

(0.5

)%

 

 

0.3

%

 

 

Combined ratio

 

101.7

%

108.1

%

113.3

%

103.0

%

115.7

%

109.5

%

110.0

%

14.0

%

 

 

0.5

%

 

 

12.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DAC Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life and Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

783

 

$

821

 

$

821

 

$

819

 

$

837

 

$

857

 

$

821

 

$

54

 

7

%

$

(36

)

(4

)%

$

18

 

2

%

Capitalization

 

26

 

19

 

21

 

20

 

24

 

80

 

84

 

(2

)

(8

)%

4

 

5

%

4

 

20

%

Non-operating amortization

 

(6

)

(1

)

3

 

3

 

(5

)

(18

)

 

1

 

17

%

18

 

#

 

(8

)

#

 

Amortization per income statement

 

(14

)

(14

)

(15

)

 

(14

)

(70

)

(43

)

 

 

27

 

39

%

(14

)

 

Other

 

32

 

(4

)

(11

)

(5

)

(3

)

(28

)

(23

)

(35

)

#

 

5

 

18

%

2

 

40

%

Total ending balance

 

$

821

 

$

821

 

$

819

 

$

837

 

$

839

 

$

821

 

$

839

 

$

18

 

2

%

$

18

 

2

%

$

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life Insurance in Force

 

$

196,472

 

$

196,338

 

$

196,045

 

$

195,947

 

$

195,931

 

$

196,472

 

$

195,931

 

$

(541

)

 

$

(541

)

 

$

(16

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Amount at Risk

 

$

41,290

 

$

41,717

 

$

41,192

 

$

41,146

 

$

40,752

 

$

41,290

 

$

40,752

 

$

(538

)

(1

)%

$

(538

)

(1

)%

$

(394

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Policyholder Reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL

 

$

10,759

 

$

11,054

 

$

11,295

 

$

11,548

 

$

11,851

 

$

10,759

 

$

11,851

 

$

1,092

 

10

%

$

1,092

 

10

%

$

303

 

3

%

Term and whole life

 

203

 

201

 

200

 

198

 

197

 

203

 

197

 

(6

)

(3

)%

(6

)

(3

)%

(1

)

(1

)%

Disability insurance

 

524

 

525

 

526

 

530

 

528

 

524

 

528

 

4

 

1

%

4

 

1

%

(2

)

 

Other insurance

 

792

 

790

 

783

 

775

 

765

 

792

 

765

 

(27

)

(3

)%

(27

)

(3

)%

(10

)

(1

)%

Auto and home loss and LAE reserves

 

614

 

610

 

599

 

589

 

611

 

614

 

611

 

(3

)

 

(3

)

 

22

 

4

%

Total net policyholder reserves

 

$

12,892

 

$

13,180

 

$

13,403

 

$

13,640

 

$

13,952

 

$

12,892

 

$

13,952

 

$

1,060

 

8

%

$

1,060

 

8

%

$

312

 

2

%

 


(1)        Includes lump sum deposits.

# Variance equal to or greater than 100%.

 

25



 

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2017

 

Corporate & Other Segment

 

26



 

Ameriprise Financial, Inc.

Corporate & Other Segment

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Product Information (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate excluding Long Term Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

(8

)

$

(9

)

$

(11

)

$

(19

)

$

(56

)

$

(28

)

$

(95

)

$

(48

)

#

 

$

(67

)

#

 

$

(37

)

#

 

Operating expenses

 

66

 

72

 

62

 

59

 

65

 

244

 

258

 

(1

)

(2

)%

14

 

6

%

6

 

10

%

Pretax operating earnings (loss)

 

$

(74

)

$

(81

)

$

(73

)

$

(78

)

$

(121

)

$

(272

)

$

(353

)

$

(47

)

(64

)%

$

(81

)

(30

)%

$

(43

)

(55

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long Term Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

67

 

$

66

 

$

66

 

$

69

 

$

67

 

$

265

 

$

268

 

$

 

 

$

3

 

1

%

$

(2

)

(3

)%

Operating expenses

 

81

 

65

 

69

 

127

 

80

 

352

 

341

 

(1

)

(1

)%

(11

)

(3

)%

(47

)

(37

)%

Pretax operating earnings (loss)

 

$

(14

)

$

1

 

$

(3

)

$

(58

)

$

(13

)

$

(87

)

$

(73

)

$

1

 

7

%

$

14

 

16

%

$

45

 

78

%

Allocated capital

 

$

663

 

$

674

 

$

690

 

$

652

 

$

676

 

$

663

 

$

676

 

$

13

 

2

%

$

13

 

2

%

$

24

 

4

%

 


(1)        See Exhibit B for details on Long Term Care and Corporate Excluding Long Term Care

# Variance equal to or greater than 100%.

 

27



 

Ameriprise Financial, Inc.

Eliminations (1)

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date 

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Eliminations Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

(36

)

$

(35

)

$

(34

)

$

(35

)

$

(34

)

$

(137

)

$

(138

)

$

2

 

6

%

$

(1

)

(1

)%

$

1

 

3

%

Distribution fees

 

(322

)

(303

)

(304

)

(304

)

(327

)

(1,248

)

(1,238

)

(5

)

(2

)%

10

 

1

%

(23

)

(8

)%

Net investment income

 

 

 

 

(1

)

(2

)

(1

)

(3

)

(2

)

 

(2

)

#

 

(1

)

#

 

Premiums

 

(6

)

(9

)

(8

)

(9

)

(9

)

(21

)

(35

)

(3

)

(50

)%

(14

)

(67

)%

 

 

Other revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

(364

)

(347

)

(346

)

(349

)

(372

)

(1,407

)

(1,414

)

(8

)

(2

)%

(7

)

 

(23

)

(7

)%

Banking and deposit interest expense

 

 

 

(1

)

(1

)

(1

)

(1

)

(3

)

(1

)

 

(2

)

#

 

 

 

Operating total net revenues

 

(364

)

(347

)

(345

)

(348

)

(371

)

(1,406

)

(1,411

)

(7

)

(2

)%

(5

)

 

(23

)

(7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

(347

)

(327

)

(325

)

(329

)

(350

)

(1,340

)

(1,331

)

(3

)

(1

)%

9

 

1

%

(21

)

(6

)%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

(3

)

(3

)

(3

)

(6

)

 

(15

)

(6

)

 

(15

)

 

(3

)

#

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

1

 

(1

)

 

 

(1

)

 

 

 

(2

)

#

 

General and administrative expense

 

(17

)

(17

)

(17

)

(17

)

(14

)

(66

)

(65

)

3

 

18

%

1

 

2

%

3

 

18

%

Operating expenses

 

(364

)

(347

)

(345

)

(348

)

(371

)

(1,406

)

(1,411

)

(7

)

(2

)%

(5

)

 

(23

)

(7

)%

Pretax operating earnings

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

 


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

# Variance equal to or greater than 100%.

 

28



 

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2017

 

Balance Sheet and Ratings Information

 

29



 

Ameriprise Financial, Inc.

Consolidated Balance Sheets

Fourth Quarter 2017

 

(in millions, unaudited)

 

December 31, 2016

 

March 31, 2017

 

June 30, 2017

 

September 30, 2017

 

December 31, 2017

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,318

 

$

1,996

 

$

2,392

 

$

2,398

 

$

2,484

 

Cash of consolidated investment entities

 

168

 

181

 

171

 

106

 

136

 

Investments

 

35,834

 

35,771

 

35,935

 

36,202

 

35,925

 

Investments of consolidated investment entities

 

2,254

 

2,249

 

2,257

 

2,215

 

2,131

 

Separate account assets

 

80,210

 

82,169

 

83,661

 

85,287

 

87,368

 

Receivables

 

5,299

 

5,355

 

5,481

 

5,742

 

5,760

 

Receivables of consolidated investment entities

 

11

 

17

 

38

 

9

 

25

 

Deferred acquisition costs

 

2,648

 

2,643

 

2,637

 

2,661

 

2,676

 

Restricted and segregated cash and investments

 

3,331

 

3,403

 

3,072

 

3,131

 

3,147

 

Other assets

 

7,748

 

7,073

 

7,500

 

7,735

 

7,818

 

Total Assets

 

$

139,821

 

$

140,857

 

$

143,144

 

$

145,486

 

$

147,470

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Policyholder account balances, future policy benefits and claims

 

$

30,202

 

$

29,762

 

$

29,878

 

$

29,963

 

$

29,904

 

Separate account liabilities

 

80,210

 

82,169

 

83,661

 

85,287

 

87,368

 

Customer deposits

 

10,036

 

10,316

 

10,200

 

10,427

 

10,303

 

Short-term borrowings

 

200

 

200

 

200

 

201

 

200

 

Long-term debt

 

2,917

 

2,911

 

2,908

 

2,902

 

2,891

 

Debt of consolidated investment entities

 

2,319

 

2,341

 

2,308

 

2,267

 

2,208

 

Accounts payable and accrued expenses

 

1,727

 

1,470

 

1,600

 

1,728

 

1,960

 

Other liabilities

 

5,823

 

5,375

 

6,001

 

6,363

 

6,575

 

Other liabilities of consolidated investment entities

 

95

 

86

 

138

 

43

 

63

 

Total Liabilities

 

133,529

 

134,630

 

136,894

 

139,181

 

141,472

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial

 

 

 

 

 

 

 

 

 

 

 

Common shares ($.01 par)

 

3

 

3

 

3

 

3

 

3

 

Additional paid-in capital

 

7,765

 

7,857

 

7,903

 

8,017

 

8,085

 

Retained earnings

 

10,351

 

10,633

 

10,897

 

11,271

 

11,329

 

Treasury stock

 

(12,027

)

(12,485

)

(12,852

)

(13,298

)

(13,648

)

Accumulated other comprehensive income, net of tax

 

200

 

219

 

299

 

312

 

229

 

Total Equity

 

6,292

 

6,227

 

6,250

 

6,305

 

5,998

 

Total Liabilities and Equity

 

$

139,821

 

$

140,857

 

$

143,144

 

$

145,486

 

$

147,470

 

 

30



 

Ameriprise Financial, Inc.

Capital and Ratings Information

Fourth Quarter 2017

 

(in millions unless otherwise noted, unaudited)

 

December 31, 2016

 

March 31, 2017

 

June 30, 2017

 

September 30, 2017

 

December 31, 2017

 

Long-term Debt Summary

 

 

 

 

 

 

 

 

 

 

 

Senior notes

 

$

2,850

 

$

2,850

 

$

2,850

 

$

2,850

 

$

2,850

 

Capital lease obligations

 

49

 

47

 

44

 

41

 

38

 

Fair value of hedges, unamortized discount and debt issuance costs

 

18

 

14

 

14

 

11

 

3

 

Total Ameriprise Financial long-term debt

 

2,917

 

2,911

 

2,908

 

2,902

 

2,891

 

Non-recourse debt of consolidated investment entities

 

2,319

 

2,341

 

2,308

 

2,267

 

2,208

 

Total long-term debt

 

$

5,236

 

$

5,252

 

$

5,216

 

$

5,169

 

$

5,099

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt

 

$

2,917

 

$

2,911

 

$

2,908

 

$

2,902

 

$

2,891

 

Fair value of hedges, unamortized discount and debt issuance costs

 

(18

)

(14

)

(14

)

(11

)

(3

)

Capital lease obligations

 

(49

)

(47

)

(44

)

(41

)

(38

)

Total Ameriprise Financial long-term debt excluding fair value of hedges, unamortized discount, debt issuance costs and capital lease obligations (1)

 

$

2,850

 

$

2,850

 

$

2,850

 

$

2,850

 

$

2,850

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity (2)

 

$

6,292

 

$

6,227

 

$

6,250

 

$

6,305

 

$

5,998

 

Equity of consolidated investment entities

 

 

(1

)

(1

)

(1

)

 

Total equity excluding CIEs (1)

 

$

6,292

 

$

6,226

 

$

6,249

 

$

6,304

 

$

5,998

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial capital

 

$

9,209

 

$

9,138

 

$

9,158

 

$

9,207

 

$

8,889

 

Total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, debt issuance costs, capital lease obligations and equity of CIEs (1)

 

$

9,142

 

$

9,076

 

$

9,099

 

$

9,154

 

$

8,848

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to capital

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt to total Ameriprise Financial capital

 

31.7

%

31.9

%

31.8

%

31.5

%

32.5

%

Total Ameriprise Financial long-term debt to total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, debt issuance costs, capital lease obligations and equity of CIEs (1)

 

31.2

%

31.4

%

31.3

%

31.1

%

32.2

%

 

Ratings (as of December 31, 2017 earnings release date)

 

A.M. Best
Company

 

Standard & Poor’s Rating
Services

 

Moody’s Investors
Service, Inc.

 

Claims Paying Ratings (3)

 

 

 

 

 

 

 

RiverSource Life Insurance Company

 

A+

 

AA-

 

Aa3

 

IDS Property Casualty Ins. Company

 

A

 

N/R

 

N/R

 

 

 

 

 

 

 

 

 

Debt Ratings (3)

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

 

a-

 

A

 

A3

 

 


(1)  See non-GAAP financial information on pg 33. Non-GAAP financial measure reconciliations can be found on page 48.

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

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

N/R - Not Rated.

 

31



 

Ameriprise Financial, Inc.

Ameriprise Financial Investments (1)

Fourth Quarter 2017

 

(in millions unless otherwise noted, unaudited)

 

December 31, 2016

 

March 31, 2017

 

June 30, 2017

 

September 30, 2017

 

December 31, 2017

 

Cash and cash equivalents

 

$

2,318

 

$

1,996

 

$

2,392

 

$

2,398

 

$

2,484

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments - Ending Balances

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale Securities

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

16,236

 

16,089

 

15,857

 

15,650

 

15,075

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage backed securities

 

6,918

 

6,882

 

6,921

 

6,790

 

6,611

 

Commercial mortgage backed securities

 

3,367

 

3,274

 

3,443

 

3,952

 

4,374

 

Asset backed securities

 

1,549

 

1,647

 

1,678

 

1,646

 

1,580

 

Total mortgage and other asset backed securities

 

11,834

 

11,803

 

12,042

 

12,388

 

12,565

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal obligations

 

2,358

 

2,400

 

2,423

 

2,455

 

2,463

 

US government and agency obligations

 

8

 

8

 

7

 

6

 

503

 

Foreign government bonds and obligations

 

261

 

264

 

300

 

308

 

314

 

Common and preferred stocks

 

22

 

18

 

18

 

19

 

7

 

Total other

 

2,649

 

2,690

 

2,748

 

2,788

 

3,287

 

Total available-for-sale securities

 

30,719

 

30,582

 

30,647

 

30,826

 

30,927

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage loans

 

2,702

 

2,712

 

2,737

 

2,770

 

2,775

 

Allowance for loan losses

 

(21

)

(21

)

(21

)

(21

)

(19

)

Commercial mortgage loans, net

 

2,681

 

2,691

 

2,716

 

2,749

 

2,756

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

305

 

290

 

277

 

251

 

 

Allowance for loan losses

 

 

 

 

 

 

Residential mortgage loans, net

 

305

 

290

 

277

 

251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy loans

 

831

 

830

 

836

 

841

 

845

 

Other investments

 

1,298

 

1,378

 

1,459

 

1,535

 

1,397

 

Total investments

 

35,834

 

35,771

 

35,935

 

36,202

 

35,925

 

Total cash, cash equivalents and investments

 

$

38,152

 

$

37,767

 

$

38,327

 

$

38,600

 

$

38,409

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gain Available-for-Sale Securities

 

$

1,247

 

$

1,282

 

$

1,452

 

$

1,508

 

$

1,435

 

 

 

 

 

 

 

 

 

 

 

 

 

AFS Fixed Maturity Asset Quality - %

 

 

 

 

 

 

 

 

 

 

 

AAA

 

31

%

31

%

33

%

34

%

37

%

AA

 

6

%

6

%

7

%

7

%

7

%

AFS securities AA and above

 

37

%

37

%

40

%

41

%

44

%

A

 

18

%

18

%

18

%

18

%

17

%

BBB

 

40

%

40

%

38

%

37

%

35

%

Below investment grade

 

5

%

5

%

4

%

4

%

4

%

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

%

4

%

4

%

4

%

 


(1)  Investments excluding investments of CIEs.

 

32



 

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, 47 and 48.

 

These non-GAAP measures include:

 

·        Adjusted net pretax operating margin;

·        Adjusted operating earnings;

·        Adjusted operating revenues;

·        Basic operating earnings per share;

·        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 excluding fair value of hedges, unamortized discount, debt issuance costs, capital lease obligations and equity of CIEs;

·        Total Ameriprise Financial long-term debt excluding fair value of hedges, unamortized discount, debt issuance costs and capital lease obligations;

·        Total Ameriprise Financial long-term debt to total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, debt issuance costs, capital lease obligations and equity of CIEs;

·        Total equity excluding AOCI;

·        Total equity excluding CIEs;

·        Total equity excluding CIEs and AOCI

 

Reclassification

 

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

 

33



 

Ameriprise Financial, Inc.

Glossary of Selected Terminology - Segments

 

Advice & Wealth Management - This segment provides financial planning and advice, as well as full service brokerage services, primarily to retail clients through our advisors. These services are centered on long-term, personal relationships between our advisors and our clients and focus on helping clients confidently achieve their financial goals. Our advisors provide a distinctive approach to financial planning and have access to a broad 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 owned assets primarily from certificate products. This segment earns revenues (distribution fees) for providing non-affiliated products and intersegment revenues (distribution fees) for providing 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. This segment also includes the results of operation for Ameriprise National Trust Bank, which terminated its deposit-taking and credit-originating activities in the fourth quarter of 2012.

 

Asset Management - This segment provides investment advice and investment products to retail, high net worth and institutional clients on a global scale through Columbia Threadneedle Investments. We provide clients with U.S. domestic individual products through unaffiliated third-party financial institutions and through our Advice & Wealth Management segment, and we provide institutional products and services through our institutional sales force. International retail products are primarily distributed through third-party financial institutions and unaffiliated financial advisors. Individual products include U.S. mutual funds and their non-U.S. equivalents, exchange-traded 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, collateralized loan obligations, hedge funds, collective funds and property funds. Collateralized loan obligations, hedge funds and certain private funds are often classified as alternative assets. Revenues in this segment are primarily earned as fees based on managed asset balances, which are impacted by market movements, net asset flows, asset allocation and product mix. We may also earn performance fees from certain accounts where investment performance meets or exceeds certain pre-identified targets. In addition our Asset Management segment provides all intercompany asset management services for Ameriprise Financial subsidiaries. The fees for 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 RiverSource variable and fixed annuity products to individual clients. RiverSource Life Insurance Company and RiverSource Life Insurance Co. of New York provide variable annuity products through our advisors, and our fixed annuity products are distributed through both affiliated and unaffiliated advisors and financial institutions. These products are designed to help individuals address their asset accumulation and income goals.  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 deferred annuity products are primarily earned as net investment income on assets supporting fixed account balances, with profitability significantly impacted by the spread between net investment income earned and interest credited on the fixed account balances. We also earn net investment income on owned assets supporting reserves for immediate annuities with a non-life contingent feature and for certain guaranteed benefits offered with variable annuities and on capital supporting the business. Revenues for our immediate annuities with a life contingent feature are earned as premium revenue.  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 VIT 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 provides a variety of products to address the protection and risk management needs of our retail clients, including life, disability income and property-casualty insurance. These products are designed to provide a lifetime of solutions that allow clients to protect income, grow assets and give to loved ones or charity. Life and disability income products are primarily provided through our advisors. Our property-casualty products are sold primarily through affinity relationships. We issue insurance policies through our life insurance subsidiaries and property casualty companies (IDS Property Casualty Insurance Company and its subsidiary, Ameriprise Insurance Company). 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 owned assets supporting insurance reserves and capital supporting the business. We also receive fees based on the level of assets supporting variable universal life separate account balances. This segment earns intersegment revenues from fees paid by our Asset Management segment for marketing support and other services provided in connection with the availability of VIT 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 or loss on corporate level assets, including excess capital held in our subsidiaries and other unallocated equity and other revenues as well as unallocated corporate expenses.  It also includes the results of our closed-block Long Term Care business.

 

34



 

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 Capital - The internal allocation of Total Ameriprise Financial Capital, excluding accumulated other comprehensive income (loss), CIEs, and capital lease obligations, fair value of hedges, debt issuance costs and unamortized discount on Ameriprise Financial long-term debt, is based on management’s best estimate of capital required to support the business. Estimates reflect the higher of regulatory or rating agency capital requirements, and include capital held for some stress contingencies.  Capital is allocated to our operating segments for the purpose of measuring segment return on allocated capital.  For the Corporate & Other segment, allocated capital also includes any capital available after capital has been allocated to the operating segments. Allocated capital is not adjusted for non-operating items except for CIEs.

 

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

 

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 advisory wrap accounts. These assets include those held in clients’ brokerage accounts. We generally record revenues 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 external client assets for which we provide investment management services, such as the assets of the Columbia funds and Threadneedle funds, assets of institutional clients and advisory assets held in wrap 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, and client assets of CIEs. 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. 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 variable interest entities, such as property funds and CLOs, 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 of Hedges on Investments - The market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments.

 

Market Impact on Fixed Indexed Annuity Benefits - The impact of changes in financial market conditions on benefit costs associated with fixed indexed annuity benefits accounted for as embedded derivatives, net of changes in associated economic hedge values and net of related impacts on DAC amortization.  This market impact includes the risk margin and nonperformance spread impact.

 

Market Impact on Indexed Universal Life Benefits - The impact of changes in financial market conditions on benefit costs associated with indexed universal life benefits accounted for as embedded derivatives, net of changes in associated economic hedge values and net of related impacts on DAC amortization, unearned revenue amortization, and the reinsurance accrual.  This market impact includes the risk margin and nonperformance spread impact.

 

35



 

Ameriprise Financial, Inc.

Glossary of Selected Terminology

 

Market Impact on Variable Annuity Guaranteed 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 economic hedge values and unhedged items including the difference between assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and certain policyholder contract elections, net of related impacts on DAC and DSIC amortization.  The 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 - Retail fund inflows less outflows.

 

Net Realized Investment Gains (Losses) - The net of realized investment gains and realized investment losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual.

 

Operating Earnings - Net income attributable to Ameriprise Financial excluding integration/restructuring charges, net of tax, market impact on variable annuity guaranteed benefits and fixed indexed annuity benefits and indexed universal life benefits, net of tax, market impact of hedges on investments, net of tax, income (loss) from discontinued operations, net of tax, net realized investment gains (losses), net of tax and net income (loss) from consolidated investment entities.

 

Operating Expenses - Total expenses excluding integration/restructuring charges, market impact on variable annuity guaranteed benefits, market impact on fixed indexed annuity benefits, market impact on indexed universal life benefits, DAC and DSIC offsets to net realized investment gains (losses) and expense from consolidated investment entities.

 

Operating Net Investment Income - Net investment income excluding net realized investment gains (losses), market impact of hedges on investments and net investment income from consolidated investment entities.

 

Operating Return on Allocated Capital - Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator.  Operating earnings for each product line are based on the target level of assets which are based on management’s best estimate after considering regulatory and rating agency requirements.

 

Operating Total Net Revenues - Total net revenues excluding net realized investment gains (losses), indexed universal life market impact on reinsurance and unearned revenue, market impact of hedges on investments, revenue from consolidated investment entities and integration/restructuring.

 

Pretax Operating Earnings - Income from continuing operations before income tax provision excluding net realized investment gains (losses), integration/restructuring charges, market impact on variable annuity guaranteed benefits, market impact on fixed indexed annuity benefits, market impact on indexed universal life benefits, market impact of hedges on investments and 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 benefits, fixed indexed annuity benefits and indexed universal life 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, net of related impacts on DAC, DSIC and unearned revenue as well as a reinsurance accrual for indexed universal life.

 

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 equity plus total Ameriprise Financial long-term debt. Total Ameriprise Financial capital is also presented excluding fair value of hedges, unamortized discount, debt issuance costs, capital lease obligations 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 ratios excluding fair value of hedges, unamortized discount, debt issuance costs, capital lease obligations and equity of consolidated investment entities.

 

Wrap Accounts - Wrap accounts enable our clients to purchase other securities such as mutual funds in connection with 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 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 a fee based on the advisory 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

 

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2017

 

Disclosed Items

 

37



 

Ameriprise Financial, Inc.

Disclosed Items

4 Qtr 2017

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth
Management

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

 

 

Market Impact on

 

Market Impact on

 

Market Impact on

 

 

 

Market Impact

 

 

 

 

 

Securities

 

Securities

 

VA Guaranteed

 

Fixed Indexed

 

Indexed Universal

 

 

 

of Hedges

 

Integration

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Annuity Benefits (3)

 

Life Benefits (4)

 

CIEs (5)

 

on Investments (6)

 

Charges (7)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

(3

)

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

 

 

Net investment income

 

3

 

8

 

 

 

 

27

 

6

 

 

Premiums

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

8

 

 

 

 

Total revenues

 

3

 

8

 

 

 

8

 

24

 

6

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

Total net revenues

 

3

 

8

 

 

 

8

 

24

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

(17

)

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

36

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

(2

)

 

5

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

24

 

 

 

General and administrative expense

 

 

 

 

 

 

 

 

4

 

Total expenses

 

 

 

34

 

 

(12

)

24

 

 

4

 

Pretax segment income (loss)

 

$

3

 

$

8

 

$

(34

)

$

 

$

20

 

$

 

$

6

 

$

(4

)

 

Included in Operating Earnings

 

 

 

Annuities

 

Protection

 

Corporate

 

Consolidated

 

 

 

 

 

Market

 

Auto & Home

 

Department of

 

 

 

 

 

Tax Benefit from

 

 

 

 

 

 

 

Impacts

 

Catastrophe

 

Labor Implementation

 

Tax Act

 

Severance

 

Adopting New

 

Tax Act

 

 

 

(in millions, unaudited)

 

to DAC/DSIC (8)

 

Losses (9)

 

Costs (10)

 

Impact (11)

 

Expense (12)

 

Accounting Standard (13)

 

Impact (14)

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

(51

)

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

 

 

(51

)

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

 

 

 

(51

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

(2

)

38

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

(9

)

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

 

 

6

 

 

7

 

 

 

 

 

Operating expenses

 

(11

)

38

 

6

 

 

7

 

 

 

 

 

Pretax operating earnings

 

$

11

 

$

(38

)

$

(6

)

$

(51

)

$

(7

)

$

 

$

 

 

 

Tax benefit (expense)

 

 

 

 

 

 

 

 

 

 

 

$

13

 

$

(269

)

 

 

 


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

(2)      Variable annuity guaranteed benefit impacts include:

$35 million net expense related to hedged variable annuity benefits

$1 million decrease in DAC and DSIC amortization resulting from hedged benefits

(3)      Fixed indexed annuity benefit impacts include:

$0 million net expense related to hedged fixed indexed annuity benefits

$0 million decrease in DAC amortization resulting from hedged fixed indexed annuity benefits

(4)      Indexed universal life benefit impacts include:

$17 million net benefit related to hedged indexed universal life benefits

$5 million increase in DAC amortization resulting from hedged indexed universal life benefits

$8 million increase in unearned revenue reserve amortization and reinsurance accrual from hedged indexed universal life benefits

(5)      Reflects revenues and expenses of Consolidated Investment Entities

(6)      The market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments

(7)      Integration charges related to acquisitions of Investment Professionals, Inc. and Lionstone Investments

(8)      Decrease in DAC and DSIC amortization from higher than projected separate account growth

(9)      Total auto and home catastrophe losses

(10)    Incremental expense related to the planning and implementation for the new Department of Labor fiduciary standard

(11)    Tax Cuts and Jobs Act impact on low income housing assets

(12)    Severance expense

(13)    Tax benefit related to the adoption of stock compensation accounting guidance

(14)       The impact of the Tax Cuts and Jobs Act including remeasurement of net deferred tax assets using the lowered corporate tax rate, repatriation tax and the tax effect of low income housing assets

 

38



 

Ameriprise Financial, Inc.

Disclosed Items

3 Qtr 2017

 

Excluded from Operating Earnings

 

 

 

Asset Management

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

 

 

 

 

Market Impact on

 

 

 

Market Impact on

 

 

 

 

 

Market Impact

 

 

 

 

 

 

 

Securities

 

Securities

 

VA Guaranteed

 

Securities

 

Indexed Universal

 

Securities

 

 

 

of Hedges

 

Integration

 

 

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Gains/(Losses) (1)

 

Life Benefits (3)

 

Gains/(Losses) (1)

 

CIEs (4)

 

on Investments (5)

 

Charges (6)

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

(3

)

$

 

$

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

(1

)

3

 

 

1

 

 

(6

)

26

 

(1

)

 

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

(5

)

 

 

 

 

 

 

Total revenues

 

(1

)

3

 

 

1

 

(5

)

(6

)

23

 

(1

)

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

(1

)

3

 

 

1

 

(5

)

(6

)

23

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

8

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

61

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

(6

)

 

(3

)

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

22

 

 

 

 

 

General and administrative expense

 

 

 

 

 

 

 

1

 

 

1

 

 

 

Total expenses

 

 

 

55

 

 

5

 

 

23

 

 

1

 

 

 

Pretax segment income (loss)

 

$

(1

)

$

3

 

$

(55

)

$

1

 

$

(10

)

$

(6

)

$

 

$

(1

)

$

(1

)

 

 

 

Included in Operating Earnings

 

 

 

Annuities

 

Protection

 

Corporate

 

Consolidated

 

 

 

Market

 

Valuation

 

Market

 

Valuation

 

Auto & Home

 

Valuation

 

Long Term Care

 

Department of

 

Affordable Housing

 

Tax Benefit from

 

 

 

Impacts

 

Assumption &

 

Impacts

 

Assumption &

 

Catastrophe

 

Assumption &

 

Loss

 

Labor Implementation

 

Investment

 

Adopting New

 

(in millions, unaudited)

 

to DAC/DSIC (7)

 

Model Changes (8)

 

to DAC/DSIC (7)

 

Model Changes (8)

 

Losses (9)

 

Model Changes (8)

 

Recognition (10)

 

Costs (11)

 

Adjustment (12)

 

Accounting Standard (13)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

(4

)

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

(47

)

 

 

 

 

 

 

Total revenues

 

 

 

 

(47

)

 

 

 

 

(4

)

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

 

 

 

(47

)

 

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

(2

)

(119

)

 

(14

)

15

 

1

 

57

 

 

 

 

Amortization of deferred acquisition costs

 

(10

)

(1

)

(1

)

(13

)

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

 

 

 

 

 

 

 

5

 

 

 

Operating expenses

 

(12

)

(120

)

(1

)

(27

)

15

 

1

 

57

 

5

 

 

 

Pretax operating earnings

 

$

12

 

$

120

 

$

1

 

$

(20

)

$

(15

)

$

(1

)

$

(57

)

$

(5

)

$

(4

)

$

 

Tax benefit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

25

 

 


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

(2)                           Variable annuity guaranteed benefit impacts include:

$61 million net expense related to hedged variable annuity benefits

$6 million decrease in DAC and DSIC amortization resulting from hedged benefits

(3)                           Indexed universal life benefit impacts include:

$8 million net expense related to hedged indexed universal life benefits

$3 million decrease in DAC amortization resulting from hedged indexed universal life benefits

$5 million decrease in unearned revenue reserve amortization and reinsurance accrual from hedged indexed universal life benefits

(4)                           Reflects revenues and expenses of Consolidated Investment Entities

(5)                           The market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments

(6)                           Integration charges related to Investment Professionals, Inc. acquisition

(7)                           Decrease in DAC and DSIC amortization from higher than projected separate account growth

(8)                           Net pretax impact of model changes and the annual review/updating of valuation assumptions, including the annual long term care review

(9)                           Total auto and home catastrophe losses

(10)                      Premium deficiency loss recognition for Long Term Care

(11)                      Incremental expense related to the planning and implementation for the new Department of Labor fiduciary standard

(12)                      Adjustment for an affordable housing investment to align it with the remaining tax benefit cash flows

(13)                      Tax benefit related to the adoption of stock compensation accounting guidance

 

39



 

Ameriprise Financial, Inc.

Disclosed Items

2 Qtr 2017

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth
Management

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

 

 

Market Impact on

 

Market Impact on

 

 

 

Market Impact

 

 

 

Securities

 

Securities

 

VA Guaranteed

 

Indexed Universal

 

 

 

of Hedges

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Life Benefits (3)

 

CIEs (4)

 

on Investments (5)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

(3

)

$

 

Distribution fees

 

 

 

 

 

 

 

Net investment income

 

7

 

14

 

 

 

28

 

(8

)

Premiums

 

 

 

 

 

 

 

Other revenues

 

 

 

 

(3

)

 

 

Total revenues

 

7

 

14

 

 

(3

)

25

 

(8

)

Banking and deposit interest expense

 

 

 

 

 

 

 

Total net revenues

 

7

 

14

 

 

(3

)

25

 

(8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

6

 

 

 

Benefits, claims, losses and settlement expenses

 

 

1

 

89

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

(9

)

(3

)

 

 

Interest and debt expense

 

 

 

 

 

22

 

 

General and administrative expense

 

 

 

 

 

2

 

 

Total expenses

 

 

1

 

80

 

3

 

24

 

 

Pretax segment income (loss)

 

$

7

 

$

13

 

$

(80

)

$

(6

)

$

1

 

$

(8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

Protection

 

Corporate

 

Consolidated

 

 

 

 

 

 

 

 

Market

 

Auto & Home

 

Department of

 

Tax Benefit from

 

 

 

 

 

 

 

 

Impacts

 

Catastrophe

 

Labor Implementation

 

Adopting New

 

 

 

 

 

 

(in millions, unaudited)

 

to DAC/DSIC (6)

 

Losses (7)

 

Costs (8)

 

Accounting Standard (9)

 

 

 

 

 

 

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

 

(2

)

44

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

(7

)

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

 

 

8

 

 

 

 

 

 

 

Operating expenses

 

(9

)

44

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

9

 

$

(44

)

$

(8

)

$

 

 

 

 

 

 

Tax benefit

 

 

 

 

 

 

 

$

4

 

 

 

 

 

 

 


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

(2)        Variable annuity guaranteed benefit impacts include:

$91 million net expense related to hedged variable annuity benefits

$11 million decrease in DAC and DSIC amortization resulting from hedged benefits

(3)        Indexed universal life benefit impacts include:

$6 million net expense related to hedged indexed universal life benefits

$3 million decrease in DAC amortization resulting from hedged indexed universal life benefits

$3 million decrease in unearned revenue reserve amortization and reinsurance accrual from hedged indexed universal life benefits

(4)        Reflects revenues and expenses of Consolidated Investment Entities

(5)        The market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments

(6)        Decrease in DAC and DSIC amortization from higher than projected separate account growth

(7)        Total auto and home catastrophe losses

(8)        Incremental expense related to the planning and implementation for the new Department of Labor fiduciary standard

(9)        Tax benefit related to the adoption of stock compensation accounting guidance

 

40



 

Ameriprise Financial, Inc.

Disclosed Items

1 Qtr 2017

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth
Management

 

Asset Management

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

 

 

 

 

Market Impact on

 

Market Impact on

 

 

 

Market Impact

 

 

 

Securities

 

Securities

 

Securities

 

VA Guaranteed

 

Indexed Universal

 

 

 

of Hedges

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Life Benefits (3)

 

CIEs (4)

 

on Investments (5)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

(3

)

$

 

Distribution fees

 

 

 

 

 

 

 

 

Net investment income

 

2

 

(2

)

17

 

 

 

25

 

1

 

Premiums

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

1

 

 

 

Total revenues

 

2

 

(2

)

17

 

 

1

 

22

 

1

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

Total net revenues

 

2

 

(2

)

17

 

 

1

 

22

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

72

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

1

 

(9

)

1

 

 

 

Interest and debt expense

 

 

 

 

 

 

21

 

 

General and administrative expense

 

 

 

 

 

 

 

 

Total expenses

 

 

 

1

 

63

 

1

 

21

 

 

Pretax segment income (loss)

 

$

2

 

$

(2

)

$

16

 

$

(63

)

$

 

$

1

 

$

1

 

 

Included in Operating Earnings

 

 

 

Annuities

 

Protection

 

Corporate

 

Consolidated

 

 

 

 

 

 

Market

 

Market

 

Auto & Home

 

Department of

 

Renegotiated

 

Tax Benefit from

 

 

 

 

 

 

Impacts

 

Impacts

 

Catastrophe

 

Labor Implementation

 

Vendor

 

Adopting New

 

 

 

 

(in millions, unaudited)

 

to DAC/DSIC (6)

 

to DAC/DSIC (6)

 

Losses (7)

 

Costs (8)

 

Arrangement (9)

 

Accounting Standard (10)

 

 

 

 

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

 

(2

)

 

25

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

(8

)

(1

)

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

 

 

 

10

 

9

 

 

 

 

 

Operating expenses

 

(10

)

(1

)

25

 

10

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

10

 

$

1

 

$

(25

)

$

(10

)

$

(9

)

$

 

 

 

 

Tax benefit

 

 

 

 

 

 

 

 

 

 

 

$

28

 

 

 

 

 


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

(2)        Variable annuity guaranteed benefit impacts include:

$73 million net expense related to hedged variable annuity benefits

$10 million decrease in DAC and DSIC amortization resulting from hedged benefits

(3)        Indexed universal life benefit impacts include:

Less than $1 million net benefit related to hedged indexed universal life benefits

$1 million increase in DAC amortization resulting from hedged indexed universal life benefits

$1 million increase in unearned revenue reserve amortization and reinsurance accrual from hedged indexed universal life benefits

(4)        Reflects revenues and expenses of Consolidated Investment Entities

(5)        The market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments

(6)        Decrease in DAC and DSIC amortization from higher than projected separate account growth

(7)        Total auto and home catastrophe losses

(8)        Incremental expense related to the planning and implementation for the new Department of Labor fiduciary standard

(9)        Renegotiation of a vendor arrangement

(10)   Tax benefit related to the adoption of stock compensation accounting guidance

 

41


 


 

Ameriprise Financial, Inc.

Disclosed Items

4 Qtr 2016

 

Excluded from Operating Earnings

 

 

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

 

 

 

 

 

Market Impact on

 

Market Impact on

 

 

 

Market Impact

 

 

 

 

 

 

 

 

Securities

 

VA Guaranteed

 

Indexed Universal

 

 

 

of Hedges

 

 

 

 

 

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Life Benefits (3)

 

CIEs (4)

 

on Investments (5)

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

(15

)

$

 

 

 

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

11

 

 

 

66

 

57

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

6

 

 

 

 

 

 

 

 

Total revenues

 

11

 

 

6

 

51

 

57

 

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

11

 

 

6

 

51

 

57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

(5

)

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

175

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

(37

)

6

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

52

 

 

 

 

 

 

 

General and administrative expense

 

 

 

 

 

 

 

 

 

 

 

Total expenses

 

 

138

 

1

 

52

 

 

 

 

 

 

 

Pretax segment income (loss)

 

11

 

(138

)

5

 

(1

)

57

 

 

 

 

 

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

11

 

$

(138

)

$

5

 

$

(1

)

$

57

 

 

 

 

 

 

 

Included in Operating Earnings

 

 

 

Annuities

 

Protection

 

Corporate

 

Consolidated

 

 

 

Market

 

Auto & Home

 

Auto & Home

 

 

 

Department of

 

 

 

 

 

 

 

Impacts

 

Catastrophe

 

Reserve

 

Long Term Care

 

Labor Implementation

 

Severance

 

Tax

 

(in millions, unaudited)

 

to DAC/DSIC (6)

 

Losses (7)

 

Changes (8)

 

Adjustments (9)

 

Costs (10)

 

Expense (11)

 

Benefit (12)

 

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

 

(1

)

15

 

(12

)

10

 

 

 

 

Amortization of deferred acquisition costs

 

(3

)

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

General and administrative expense

 

 

 

 

 

11

 

12

 

 

Operating expenses

 

(4

)

15

 

(12

)

10

 

11

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

4

 

$

(15

)

$

12

 

$

(10

)

$

(11

)

$

(12

)

$

 

Tax benefit

 

 

 

 

 

 

 

 

 

 

 

 

 

$

27

 

 


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

(2)        Variable annuity guaranteed benefit impacts include:

$177 million net expense related to hedged variable annuity benefits

$39 million decrease in DAC and DSIC amortization resulting from hedged benefits

(3)        Indexed universal life benefit impacts include:

$5 million net benefit related to hedged indexed universal life benefits

$6 million increase in DAC amortization resulting from hedged indexed universal life benefits

$6 million increase in unearned revenue reserve amortization and reinsurance accrual from hedged indexed universal life benefits

(4)        Reflects revenues and expenses of Consolidated Investment Entities

(5)        The market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments

(6)        Decrease in DAC and DSIC amortization from higher than projected separate account growth

(7)        Total auto and home catastrophe losses

(8)        Auto and home change in reserves from improved loss trends

(9)        Long term care adjustments

(10)   Incremental expense related to the planning and implementation for the new Department of Labor fiduciary standard

(11)   Severance expense

(12)   Unanticipated benefit from tax audit settlements related to the 1997 to 2011 federal returns

 

42


 


 

Exhibit B

 

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2017

 

Corporate & Other Segment Details

 

43


 


 

Ameriprise Financial, Inc.

Corporate Excluding Long Term Care

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Corporate Excluding Long Term Care Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

(9

)

(11

)

(11

)

(19

)

(58

)

(32

)

(99

)

(49

)

#

 

(67

)

#

 

(39

)

#

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

1

 

2

 

1

 

1

 

3

 

5

 

7

 

2

 

#

 

2

 

40

%

2

 

#

 

Total revenues

 

(8

)

(9

)

(10

)

(18

)

(55

)

(27

)

(92

)

(47

)

#

 

(65

)

#

 

(37

)

#

 

Banking and deposit interest expense

 

 

 

1

 

1

 

1

 

1

 

3

 

1

 

 

2

 

#

 

 

 

Operating total net revenues

 

(8

)

(9

)

(11

)

(19

)

(56

)

(28

)

(95

)

(48

)

#

 

(67

)

#

 

(37

)

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

1

 

 

 

1

 

 

 

1

 

 

(1

)

#

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

4

 

5

 

4

 

3

 

4

 

18

 

16

 

 

 

(2

)

(11

)%

1

 

33

%

General and administrative expense

 

62

 

67

 

58

 

55

 

61

 

226

 

241

 

(1

)

(2

)%

15

 

7

%

6

 

11

%

Operating expenses

 

66

 

72

 

62

 

59

 

65

 

244

 

258

 

(1

)

(2

)%

14

 

6

%

6

 

10

%

Pretax operating earnings (loss)

 

$

(74

)

$

(81

)

$

(73

)

$

(78

)

$

(121

)

$

(272

)

$

(353

)

$

(47

)

(64

)%

$

(81

)

(30

)%

$

(43

)

(55

)%

 


# Variance equal to or greater than 100%.

 

44



 

Ameriprise Financial, Inc.

Long Term Care

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Long Term Care Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

38

 

39

 

40

 

41

 

39

 

155

 

159

 

1

 

3

%

4

 

3

%

(2

)

(5

)%

Premiums

 

29

 

27

 

26

 

28

 

28

 

110

 

109

 

(1

)

(3

)%

(1

)

(1

)%

 

 

Other revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

67

 

66

 

66

 

69

 

67

 

265

 

268

 

 

 

3

 

1

%

(2

)

(3

)%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

67

 

66

 

66

 

69

 

67

 

265

 

268

 

 

 

3

 

1

%

(2

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

(3

)

(3

)

(2

)

(3

)

(4

)

(42

)

(12

)

(1

)

(33

)%

30

 

71

%

(1

)

(33

)%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

75

 

58

 

62

 

119

 

74

 

294

 

313

 

(1

)

(1

)%

19

 

6

%

(45

)

(38

)%

Amortization of deferred acquisition costs

 

 

 

 

 

 

63

 

 

 

 

(63

)

#

 

 

 

Interest and debt expense

 

2

 

3

 

2

 

3

 

3

 

9

 

11

 

1

 

50

%

2

 

22

%

 

 

General and administrative expense

 

7

 

7

 

7

 

8

 

7

 

28

 

29

 

 

 

1

 

4

%

(1

)

(13

)%

Operating expenses

 

81

 

65

 

69

 

127

 

80

 

352

 

341

 

(1

)

(1

)%

(11

)

(3

)%

(47

)

(37

)%

Pretax operating earnings (loss)

 

$

(14

)

$

1

 

$

(3

)

$

(58

)

$

(13

)

$

(87

)

$

(73

)

$

1

 

7

%

$

14

 

16

%

$

45

 

78

%

 


# Variance equal to or greater than 100%.

 

45



 

Exhibit C

 

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2017

 

Non-GAAP Financial Measure Reconciliations

 

46



 

Ameriprise Financial, Inc.

Non-GAAP Financial Measure Reconciliations

Fourth Quarter 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-date

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2016

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

2016

 

2017

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (last twelve months)

 

$

1,314

 

$

1,353

 

$

1,411

 

$

1,699

 

$

1,480

 

$

1,314

 

$

1,480

 

Less adjustments (1)

 

(113

)

(128

)

(132

)

(165

)

(123

)

(113

)

(123

)

Operating earnings (last twelve months)

 

$

1,427

 

$

1,481

 

$

1,543

 

$

1,864

 

$

1,603

 

$

1,427

 

$

1,603

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial shareholders’ equity (five point quarter end average)

 

$

6,877

 

$

6,684

 

$

6,520

 

$

6,369

 

$

6,214

 

$

6,877

 

$

6,214

 

Less AOCI, net of tax (five point quarter end average)

 

426

 

419

 

390

 

325

 

251

 

426

 

251

 

Total Ameriprise Financial shareholders’ equity excluding AOCI (five point quarter end average)

 

6,451

 

6,265

 

6,130

 

6,044

 

5,963

 

6,451

 

5,963

 

Less equity impacts attributable to the consolidated investment entities (five point quarter end average)

 

27

 

 

 

1

 

1

 

27

 

1

 

Operating equity (five point quarter end average)

 

$

6,424

 

$

6,265

 

$

6,130

 

$

6,043

 

$

5,962

 

$

6,424

 

$

5,962

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity excluding AOCI

 

20.4

%

21.6

%

23.0

%

28.1

%

24.8

%

20.4

%

24.8

%

Operating return on equity excluding AOCI

 

22.2

%

23.6

%

25.2

%

30.8

%

26.9

%

22.2

%

26.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective Tax Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

$

469

 

$

475

 

$

511

 

$

628

 

$

600

 

$

1,592

 

$

2,214

 

Less adjustments (2)

 

(66

)

(45

)

(73

)

(70

)

(1

)

(173

)

(189

)

Pretax operating earnings

 

$

535

 

$

520

 

$

584

 

$

698

 

$

601

 

$

1,765

 

$

2,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

$

69

 

$

72

 

$

118

 

$

125

 

$

419

 

$

278

 

$

734

 

Operating income tax provision

 

$

92

 

$

88

 

$

143

 

$

150

 

$

419

 

$

338

 

$

800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

14.5

%

15.2

%

23.1

%

19.9

%

69.8

%

17.4

%

33.1

%

Operating effective tax rate

 

17.2

%

16.9

%

24.5

%

21.5

%

69.7

%

19.2

%

33.3

%

 


(1)        Adjustments reflect the trailing twelve months’ sum of after-tax net realized investment gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on variable annuity guaranteed benefits, net of hedges and the related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact on fixed indexed annuity benefits, net of hedges and the related DAC amortization; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration/restructuring charges; and net income (loss) from consolidated investment entities. After-tax is calculated using the statutory tax rate of 35%.

(2)        Adjustments reflect net realized investment gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on variable annuity guaranteed benefits net of hedges and the related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact on fixed indexed annuity benefits, net of hedges and the related DAC amortization; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration/restructuring charges; and the impact of consolidated investment entities.

 

47



 

Ameriprise Financial, Inc.

Non-GAAP Financial Measure Reconciliations

Fourth Quarter 2017

 

(in millions unless otherwise noted, unaudited)

 

December 31, 2016

 

March 31, 2017

 

June 30, 2017

 

September 30, 2017

 

December 31, 2017

 

Long-term Debt Summary

 

 

 

 

 

 

 

 

 

 

 

Senior notes

 

$

2,850

 

$

2,850

 

$

2,850

 

$

2,850

 

$

2,850

 

Capital lease obligations

 

49

 

47

 

44

 

41

 

38

 

Fair value of hedges, unamortized discount and debt issuance costs

 

18

 

14

 

14

 

11

 

3

 

Total Ameriprise Financial long-term debt

 

2,917

 

2,911

 

2,908

 

2,902

 

2,891

 

Less fair value of hedges, unamortized discount and debt issuance costs

 

18

 

14

 

14

 

11

 

3

 

Less capital lease obligations

 

49

 

47

 

44

 

41

 

38

 

Total Ameriprise Financial long-term debt excluding fair value of hedges, unamortized discount, debt issuance costs and capital lease obligations

 

$

2,850

 

$

2,850

 

$

2,850

 

$

2,850

 

$

2,850

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Summary

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

$

6,292

 

$

6,227

 

$

6,250

 

$

6,305

 

$

5,998

 

Less equity of consolidated investment entities

 

 

1

 

1

 

1

 

 

Total equity excluding CIEs

 

$

6,292

 

$

6,226

 

$

6,249

 

$

6,304

 

$

5,998

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Summary

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt

 

$

2,917

 

$

2,911

 

$

2,908

 

$

2,902

 

$

2,891

 

Total equity

 

6,292

 

6,227

 

6,250

 

6,305

 

5,998

 

Total Ameriprise Financial capital

 

9,209

 

9,138

 

9,158

 

9,207

 

8,889

 

Less equity of consolidated investment entities

 

 

1

 

1

 

1

 

 

Less fair value of hedges, unamortized discount and debt issuance costs

 

18

 

14

 

14

 

11

 

3

 

Less capital lease obligations

 

49

 

47

 

44

 

41

 

38

 

Total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, debt issuance costs, capital lease obligations and equity of CIEs

 

$

9,142

 

$

9,076

 

$

9,099

 

$

9,154

 

$

8,848

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt to total Ameriprise Financial capital

 

31.7

%

31.9

%

31.8

%

31.5

%

32.5

%

Total Ameriprise Financial long-term debt to total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, debt issuance costs, capital lease obligations and equity of CIEs

 

31.2

%

31.4

%

31.3

%

31.1

%

32.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

$

6,292

 

$

6,227

 

$

6,250

 

$

6,305

 

$

5,998

 

AOCI

 

200

 

219

 

299

 

312

 

229

 

Retained earnings attributable to CIEs

 

 

1

 

1

 

1

 

1

 

AOCI attributable to CIEs

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

$

6,292

 

$

6,227

 

$

6,250

 

$

6,305

 

$

5,998

 

Less AOCI

 

200

 

219

 

299

 

312

 

229

 

Total equity excluding AOCI

 

$

6,092

 

$

6,008

 

$

5,951

 

$

5,993

 

$

5,769

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

$

6,292

 

$

6,227

 

$

6,250

 

$

6,305

 

$

5,998

 

Less retained earnings attributable to CIEs

 

 

1

 

1

 

1

 

1

 

Less AOCI

 

200

 

219

 

299

 

312

 

229

 

Total equity excluding CIEs and AOCI

 

$

6,092

 

$

6,007

 

$

5,950

 

$

5,992

 

$

5,768

 

 

48