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8-K - 8-K - AMERIPRISE FINANCIAL INCa15-9389_18k.htm
EX-99.1 - EX-99.1 - AMERIPRISE FINANCIAL INCa15-9389_1ex99d1.htm

Exhibit 99.2

 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2015

 

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

Columbia Asset Management Products

17

Threadneedle Asset Management Products

18

Retail Fund Performance - Columbia

19

Retail Fund Performance - Threadneedle

20

Annuities Segment

 

Segment Operating Income Statements

22

Segment Metrics

23

Protection Segment

 

Segment Operating Income Statements

25

Segment Metrics

26

Corporate & Other Segment

 

Segment Operating Income Statements

28

Eliminations

 

Operating Income Statements

29

Balance Sheet and Ratings Information

 

Consolidated Balance Sheets

31

Capital and Ratings Information

32

Investments

33

Non-GAAP Financial Information

34

Glossary of Selected Terminology

 

Glossary of Selected Terminology - Segments

35

Glossary of Selected Terminology

36

Exhibit A

 

Disclosed Items

38

Exhibit B

 

Non-GAAP Financial Measure Reconciliations

44

 

2



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2015

 

Consolidated Results

 

3



 

Ameriprise Financial, Inc.

Statistical Supplement Presentation

First Quarter 2015

 

Ameriprise Financial, Inc. (“Ameriprise Financial” or “the Company”) prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”). Management believes that operating measures, which exclude net realized gains or losses; the market impact on variable annuity guaranteed benefits, net of hedges and the related deferred sales inducement costs (“DSIC”) and deferred acquisition costs (“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; 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 B “Non-GAAP Financial Measure Reconciliations” on pages 44 and 45.

 

The market impact on variable annuity guaranteed 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 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

First Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions, except per share amounts, unaudited)

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

1,386

 

$

1,452

 

$

1,483

 

$

1,489

 

$

1,468

 

$

1,386

 

$

1,468

 

$

82

 

6

%

$

82

 

6

%

$

(21

)

(1

)%

Distribution fees

 

476

 

470

 

464

 

484

 

466

 

476

 

466

 

(10

)

(2

)%

(10

)

(2

)%

(18

)

(4

)%

Net investment income

 

471

 

433

 

428

 

409

 

484

 

471

 

484

 

13

 

3

%

13

 

3

%

75

 

18

%

Premiums

 

330

 

345

 

351

 

359

 

353

 

330

 

353

 

23

 

7

%

23

 

7

%

(6

)

(2

)%

Other revenues

 

340

 

379

 

392

 

355

 

289

 

340

 

289

 

(51

)

(15

)%

(51

)

(15

)%

(66

)

(19

)%

Total revenues

 

3,003

 

3,079

 

3,118

 

3,096

 

3,060

 

3,003

 

3,060

 

57

 

2

%

57

 

2

%

(36

)

(1

)%

Banking and deposit interest expense

 

7

 

7

 

7

 

7

 

7

 

7

 

7

 

 

 

 

 

 

 

Total net revenues

 

2,996

 

3,072

 

3,111

 

3,089

 

3,053

 

2,996

 

3,053

 

57

 

2

%

57

 

2

%

(36

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

786

 

810

 

813

 

827

 

819

 

786

 

819

 

33

 

4

%

33

 

4

%

(8

)

(1

)%

Interest credited to fixed accounts

 

186

 

175

 

168

 

184

 

172

 

186

 

172

 

(14

)

(8

)%

(14

)

(8

)%

(12

)

(7

)%

Benefits, claims, losses and settlement expenses

 

450

 

506

 

458

 

568

 

533

 

450

 

533

 

83

 

18

%

83

 

18

%

(35

)

(6

)%

Amortization of deferred acquisition costs

 

87

 

78

 

116

 

86

 

75

 

87

 

75

 

(12

)

(14

)%

(12

)

(14

)%

(11

)

(13

)%

Interest and debt expense

 

79

 

79

 

79

 

91

 

84

 

79

 

84

 

5

 

6

%

5

 

6

%

(7

)

(8

)%

General and administrative expense

 

758

 

805

 

757

 

775

 

752

 

758

 

752

 

(6

)

(1

)%

(6

)

(1

)%

(23

)

(3

)%

Total expenses

 

2,346

 

2,453

 

2,391

 

2,531

 

2,435

 

2,346

 

2,435

 

89

 

4

%

89

 

4

%

(96

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax provision

 

650

 

619

 

720

 

558

 

618

 

650

 

618

 

(32

)

(5

)%

(32

)

(5

)%

60

 

11

%

Income tax provision

 

134

 

152

 

155

 

104

 

139

 

134

 

139

 

5

 

4

%

5

 

4

%

35

 

34

%

Income from continuing operations

 

516

 

467

 

565

 

454

 

479

 

516

 

479

 

(37

)

(7

)%

(37

)

(7

)%

25

 

6

%

Income (loss) from discontinued operations, net of tax

 

(1

)

 

 

(1

)

 

(1

)

 

1

 

#

 

1

 

#

 

1

 

#

 

Net income

 

515

 

467

 

565

 

453

 

479

 

515

 

479

 

(36

)

(7

)%

(36

)

(7

)%

26

 

6

%

Less: Net income (loss) attributable to noncontrolling interests

 

115

 

93

 

145

 

28

 

86

 

115

 

86

 

(29

)

(25

)%

(29

)

(25

)%

58

 

#

 

Net income attributable to Ameriprise Financial

 

$

400

 

$

374

 

$

420

 

$

425

 

$

393

 

$

400

 

$

393

 

$

(7

)

(2

)%

$

(7

)

(2

)%

$

(32

)

(8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

374

 

$

375

 

$

365

 

$

365

 

$

354

 

$

374

 

$

354

 

$

(20

)

(5

)%

$

(20

)

(5

)%

$

(11

)

(3

)%

Realized gains (losses)

 

5

 

1

 

4

 

27

 

10

 

5

 

10

 

5

 

#

 

5

 

#

 

(17

)

(63

)%

Affordable housing

 

(6

)

(6

)

(8

)

(5

)

(8

)

(6

)

(8

)

(2

)

(33

)%

(2

)

(33

)%

(3

)

(60

)%

Other (including seed money)

 

24

 

20

 

26

 

23

 

23

 

24

 

23

 

(1

)

(4

)%

(1

)

(4

)%

 

 

Consolidated investment entities

 

74

 

43

 

41

 

(1

)

105

 

74

 

105

 

31

 

42

%

31

 

42

%

106

 

#

 

Total net investment income

 

$

471

 

$

433

 

$

428

 

$

409

 

$

484

 

$

471

 

$

484

 

$

13

 

3

%

$

13

 

3

%

$

75

 

18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

2.05

 

$

1.94

 

$

2.21

 

$

2.27

 

$

2.11

 

$

2.05

 

$

2.11

 

$

0.06

 

3

%

$

0.06

 

3

%

$

(0.16

)

(7

)%

Income (loss) from discontinued operations

 

 

 

 

(0.01

)

 

 

 

 

 

 

 

0.01

 

#

 

Net income

 

$

2.05

 

$

1.94

 

$

2.21

 

$

2.26

 

$

2.11

 

$

2.05

 

$

2.11

 

$

0.06

 

3

%

$

0.06

 

3

%

$

(0.15

)

(7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

2.01

 

$

1.91

 

$

2.17

 

$

2.23

 

$

2.08

 

$

2.01

 

$

2.08

 

$

0.07

 

3

%

$

0.07

 

3

%

$

(0.15

)

(7

)%

Income (loss) from discontinued operations

 

 

 

 

(0.01

)

 

 

 

 

 

 

 

0.01

 

#

 

Net income

 

$

2.01

 

$

1.91

 

$

2.17

 

$

2.22

 

$

2.08

 

$

2.01

 

$

2.08

 

$

0.07

 

3

%

$

0.07

 

3

%

$

(0.14

)

(6

)%

Earnings per diluted share growth (from continuing operations)

 

27.2

%

24.0

%

16.7

%

51.7

%

3.5

%

27.2

%

3.5

%

(23.7

)%

 

 

(23.7

)%

 

 

(48.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

195.5

 

192.7

 

190.3

 

187.9

 

186.3

 

195.5

 

186.3

 

(9.2

)

(5

)%

(9.2

)

(5

)%

(1.6

)

(1

)%

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

 

3.6

 

3.5

 

3.4

 

3.3

 

2.8

 

3.6

 

2.8

 

(0.8

)

(22

)%

(0.8

)

(22

)%

(0.5

)

(15

)%

Diluted weighted average common shares outstanding

 

199.1

 

196.2

 

193.7

 

191.2

 

189.1

 

199.1

 

189.1

 

(10.0

)

(5

)%

(10.0

)

(5

)%

(2.1

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue growth

 

11.3

%

11.7

%

10.6

%

4.9

%

1.9

%

11.3

%

1.9

%

(9.4

)%

 

 

(9.4

)%

 

 

(3.0

)%

 

 

Pretax income margin (1)

 

21.7

%

20.1

%

23.1

%

18.1

%

20.2

%

21.7

%

20.2

%

(1.5

)%

 

 

(1.5

)%

 

 

2.1

%

 

 

Effective tax rate

 

20.7

%

24.5

%

21.6

%

18.7

%

22.5

%

20.7

%

22.5

%

1.8

%

 

 

1.8

%

 

 

3.8

%

 

 

Effective tax rate excluding noncontrolling interests (2)

 

25.1

%

28.7

%

27.0

%

19.7

%

26.1

%

25.1

%

26.1

%

1.0

%

 

 

1.0

%

 

 

6.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial shareholders’ equity / outstanding shares (3)

 

$

42.99

 

$

44.03

 

$

43.68

 

$

43.47

 

$

44.27

 

$

42.99

 

$

44.27

 

$

1.28

 

3

%

$

1.28

 

3

%

$

0.80

 

2

%

Ameriprise Financial shareholders’ equity excluding AOCI / outstanding shares (2)(4)

 

$

39.14

 

$

39.23

 

$

39.74

 

$

39.93

 

$

40.47

 

$

39.14

 

$

40.47

 

$

1.33

 

3

%

$

1.33

 

3

%

$

0.54

 

1

%

 


(1) Calculated as income from continuing operations before income tax provision divided by total net revenues.

(2) See non-GAAP financial information on pg 34.  Non-GAAP financial measure reconciliations can be found on pages 44 and 45.

(3) Calculated as Ameriprise Financial shareholders’ equity divided by common shares outstanding plus common stock equivalents outstanding at period end.

(4) Calculated as Ameriprise Financial shareholders’ equity excluding AOCI divided by common shares outstanding plus common stock equivalents outstanding at period end.

# Variance of greater than 100%.

 

5



 

Ameriprise Financial, Inc.

Consolidated Operating Results and Highlights

First Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions except per share amounts, unaudited)

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

$

2,996

 

$

3,072

 

$

3,111

 

$

3,089

 

$

3,053

 

$

2,996

 

$

3,053

 

$

57

 

2

%

$

57

 

2

%

$

(36

)

(1

)%

Less revenues attributable to the CIEs

 

177

 

160

 

206

 

108

 

149

 

177

 

149

 

(28

)

(16

)%

(28

)

(16

)%

41

 

38

%

Less realized gains (losses)

 

5

 

1

 

4

 

27

 

10

 

5

 

10

 

5

 

#

 

5

 

#

 

(17

)

(63

)%

Less market impact on indexed universal life benefits

 

2

 

(4

)

2

 

(11

)

(4

)

2

 

(4

)

(6

)

#

 

(6

)

#

 

7

 

64

%

Operating total net revenues (1)

 

$

2,812

 

$

2,915

 

$

2,899

 

$

2,965

 

$

2,898

 

$

2,812

 

$

2,898

 

$

86

 

3

%

$

86

 

3

%

$

(67

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Ameriprise Financial

 

$

400

 

$

374

 

$

420

 

$

425

 

$

393

 

$

400

 

$

393

 

$

(7

)

(2

)%

$

(7

)

(2

)%

$

(32

)

(8

)%

Less income (loss) from discontinued operations, net of tax

 

(1

)

 

 

(1

)

 

(1

)

 

1

 

#

 

1

 

#

 

1

 

#

 

Net income from continuing operations attributable to Ameriprise Financial

 

401

 

374

 

420

 

426

 

393

 

401

 

393

 

(8

)

(2

)%

(8

)

(2

)%

(33

)

(8

)%

Market impact on variable annuity guaranteed benefits, net of tax (2)

 

10

 

35

 

(5

)

21

 

22

 

10

 

22

 

12

 

#

 

12

 

#

 

1

 

5

%

Market impact on indexed universal life benefits, net of tax (2)

 

(1

)

 

(5

)

10

 

4

 

(1

)

4

 

5

 

#

 

5

 

#

 

(6

)

(60

)%

Less realized gains (losses), net of tax (2)

 

3

 

1

 

3

 

17

 

7

 

3

 

7

 

4

 

#

 

4

 

#

 

(10

)

(59

)%

Operating earnings (1)

 

$

407

 

$

408

 

$

407

 

$

440

 

$

412

 

$

407

 

$

412

 

$

5

 

1

%

$

5

 

1

%

$

(28

)

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax provision

 

$

650

 

$

619

 

$

720

 

$

558

 

$

618

 

$

650

 

$

618

 

$

(32

)

(5

)%

$

(32

)

(5

)%

$

60

 

11

%

Less net income (loss) attributable to noncontrolling interests

 

115

 

93

 

145

 

28

 

86

 

115

 

86

 

(29

)

(25

)%

(29

)

(25

)%

58

 

#

 

Pretax earnings excluding CIEs

 

535

 

526

 

575

 

530

 

532

 

535

 

532

 

(3

)

(1

)%

(3

)

(1

)%

2

 

 

Market impact on variable annuity guaranteed benefits

 

15

 

54

 

(9

)

34

 

34

 

15

 

34

 

19

 

#

 

19

 

#

 

 

 

Market impact on indexed universal life benefits

 

(1

)

 

(8

)

15

 

6

 

(1

)

6

 

7

 

#

 

7

 

#

 

(9

)

(60

)%

Less realized gains (losses)

 

5

 

1

 

4

 

27

 

10

 

5

 

10

 

5

 

#

 

5

 

#

 

(17

)

(63

)%

Pretax operating earnings (1)

 

$

544

 

$

579

 

$

554

 

$

552

 

$

562

 

$

544

 

$

562

 

$

18

 

3

%

$

18

 

3

%

$

10

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Operating Margin (1)(3)

 

19.3

%

19.9

%

19.1

%

18.6

%

19.4

%

19.3

%

19.4

%

0.1

%

 

 

0.1

%

 

 

0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Effective Tax Rate (1)(4)

 

25.2

%

29.5

%

26.5

%

20.3

%

26.7

%

25.2

%

26.7

%

1.5

%

 

 

1.5

%

 

 

6.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

195.5

 

192.7

 

190.3

 

187.9

 

186.3

 

195.5

 

186.3

 

(9.2

)

(5

)%

(9.2

)

(5

)%

(1.6

)

(1

)%

Diluted

 

199.1

 

196.2

 

193.7

 

191.2

 

189.1

 

199.1

 

189.1

 

(10.0

)

(5

)%

(10.0

)

(5

)%

(2.1

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Earnings Per Share (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic operating earnings per share

 

$

2.08

 

$

2.12

 

$

2.14

 

$

2.34

 

$

2.21

 

$

2.08

 

$

2.21

 

$

0.13

 

6

%

$

0.13

 

6

%

$

(0.13

)

(6

)%

Operating earnings per diluted share

 

$

2.04

 

$

2.08

 

$

2.10

 

$

2.30

 

$

2.18

 

$

2.04

 

$

2.18

 

$

0.14

 

7

%

$

0.14

 

7

%

$

(0.12

)

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity excluding AOCI (1)(4)

 

18.2

%

19.1

%

19.7

%

21.5

%

21.5

%

18.2

%

21.5

%

3.3

%

 

 

3.3

%

 

 

 

 

 

Operating return on equity excluding AOCI (1)(4)

 

20.8

%

21.7

%

22.1

%

23.0

%

23.1

%

20.8

%

23.1

%

2.3

%

 

 

2.3

%

 

 

0.1

%

 

 

 


(1) See non-GAAP financial information on pg 34.

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

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

(4) Non-GAAP financial measure reconciliations can be found on pg 44.

# Variance of greater than 100%.

 

6



 

Ameriprise Financial, Inc.

Consolidated Operating Results and Highlights

First Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Book Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial shareholders’ equity excluding CIEs / outstanding shares (1)(2)

 

$

41.24

 

$

42.42

 

$

42.12

 

$

42.28

 

$

42.84

 

$

41.24

 

$

42.84

 

$

1.60

 

4

%

$

1.60

 

4

%

$

0.56

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial shareholders’ equity excluding CIEs and AOCI / outstanding shares (1)(3)

 

$

37.31

 

$

37.55

 

$

38.11

 

$

38.67

 

$

38.96

 

$

37.31

 

$

38.96

 

$

1.65

 

4

%

$

1.65

 

4

%

$

0.29

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenue growth: Target 6 - 8%

 

7.8

%

6.5

%

7.6

%

5.3

%

3.1

%

7.8

%

3.1

%

(4.7

)%

 

 

(4.7

)%

 

 

(2.2

)%

 

 

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

 

28.3

%

23.1

%

9.9

%

23.0

%

6.9

%

28.3

%

6.9

%

(21.4

)%

 

 

(21.4

)%

 

 

(16.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

20.8

%

21.7

%

22.1

%

23.0

%

23.1

%

20.8

%

23.1

%

2.3

%

 

 

2.3

%

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

24.6

%

23.0

%

27.0

%

27.4

%

27.2

%

24.6

%

27.2

%

2.6

%

 

 

2.6

%

 

 

(0.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill and Intangible Assets

 

$

2,054

 

$

2,055

 

$

2,036

 

$

2,010

 

$

1,982

 

$

2,054

 

$

1,982

 

$

(72

)

(4

)%

$

(72

)

(4

)%

$

(28

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Under Management and Administration

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management AUM

 

$

158,839

 

$

167,277

 

$

168,724

 

$

174,088

 

$

179,361

 

$

158,839

 

$

179,361

 

$

20,522

 

13

%

$

20,522

 

13

%

$

5,273

 

3

%

Asset Management AUM

 

503,896

 

518,260

 

504,793

 

505,588

 

506,310

 

503,896

 

506,310

 

2,414

 

 

2,414

 

 

722

 

 

Corporate AUM

 

869

 

887

 

861

 

826

 

756

 

869

 

756

 

(113

)

(13

)%

(113

)

(13

)%

(70

)

(8

)%

Eliminations

 

(20,548

)

(21,266

)

(21,699

)

(21,885

)

(22,489

)

(20,548

)

(22,489

)

(1,941

)

(9

)%

(1,941

)

(9

)%

(604

)

(3

)%

Total Assets Under Management

 

643,056

 

665,158

 

652,679

 

658,617

 

663,938

 

643,056

 

663,938

 

20,882

 

3

%

20,882

 

3

%

5,321

 

1

%

Total Assets Under Administration

 

139,751

 

144,748

 

144,075

 

147,560

 

150,836

 

139,751

 

150,836

 

11,085

 

8

%

11,085

 

8

%

3,276

 

2

%

Total AUM and AUA

 

$

782,807

 

$

809,906

 

$

796,754

 

$

806,177

 

$

814,774

 

$

782,807

 

$

814,774

 

$

31,967

 

4

%

$

31,967

 

4

%

$

8,597

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise client assets

 

$

418,384

 

$

434,659

 

$

433,804

 

$

444,391

 

$

452,969

 

$

418,384

 

$

452,969

 

$

34,585

 

8

%

$

34,585

 

8

%

$

8,578

 

2

%

Total branded financial advisors

 

9,704

 

9,692

 

9,696

 

9,672

 

9,691

 

9,704

 

9,691

 

(13

)

 

(13

)

 

19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Flows and Net Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded advisor wrap (4)

 

$

4,205

 

$

3,019

 

$

3,834

 

$

3,130

 

$

2,802

 

$

4,205

 

$

2,802

 

$

(1,403

)

(33

)%

$

(1,403

)

(33

)%

$

(328

)

(10

)%

Asset Management

 

(3,897

)

4,424

 

(4,117

)

5,682

 

(5,821

)

(3,897

)

(5,821

)

(1,924

)

(49

)%

(1,924

)

(49

)%

(11,503

)

#

 

Annuities

 

(815

)

(916

)

(740

)

(721

)

(950

)

(815

)

(950

)

(135

)

(17

)%

(135

)

(17

)%

(229

)

(32

)%

Variable universal life / Universal life

 

(38

)

(31

)

(39

)

(30

)

(48

)

(38

)

(48

)

(10

)

(26

)%

(10

)

(26

)%

(18

)

(60

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

S&P 500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Daily average

 

1,835

 

1,899

 

1,977

 

2,012

 

2,064

 

1,835

 

2,064

 

229

 

12

%

229

 

12

%

52

 

3

%

Period end

 

1,872

 

1,960

 

1,972

 

2,059

 

2,068

 

1,872

 

2,068

 

196

 

10

%

196

 

10

%

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1) See non-GAAP financial information on pg 34.  Non-GAAP financial measure reconciliations can be found on pages 44 and 45.

(2) Calculated as Ameriprise Financial shareholders’ equity excluding CIEs divided by common shares outstanding plus common stock equivalents outstanding at period end.

(3) Calculated as Ameriprise Financial shareholders’ equity excluding CIEs and AOCI divided by common shares outstanding plus common stock equivalents outstanding at period end.

(4) Beginning April 1, 2014, net flows reflect all additions and withdrawals to and from the Ameriprise Strategic Portfolio Service (“SPS”) wrap account program.  For all periods presented prior to April 1, 2014, additions and withdrawals to and from certain non-billable investments of this program were reflected in the Market appreciation (depreciation) and other line and purchases and sales of billable investments were reported in the Net flows line.  Net flows for the SPS program are now reported on a consistent basis with our other wrap account programs.  See page 13 for wrap asset rollforward details.

# Variance of greater than 100%.

 

7



 

Ameriprise Financial, Inc.

Common Share and Capital Summary

First Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

192.1

 

190.6

 

187.7

 

185.4

 

183.1

 

192.1

 

183.1

 

(9.0

)

(5

)%

(9.0

)

(5

)%

(2.3

)

(1

)%

Repurchases

 

(3.2

)

(3.2

)

(2.7

)

(2.7

)

(2.6

)

(3.2

)

(2.6

)

0.6

 

19

%

0.6

 

19

%

0.1

 

4

%

Issuances

 

3.1

 

0.9

 

0.8

 

0.9

 

2.0

 

3.1

 

2.0

 

(1.1

)

(35

)%

(1.1

)

(35

)%

1.1

 

#

 

Other

 

(1.4

)

(0.6

)

(0.4

)

(0.5

)

(0.7

)

(1.4

)

(0.7

)

0.7

 

50

%

0.7

 

50

%

(0.2

)

(40

)%

Total common shares outstanding

 

190.6

 

187.7

 

185.4

 

183.1

 

181.8

 

190.6

 

181.8

 

(8.8

)

(5

)%

(8.8

)

(5

)%

(1.3

)

(1

)%

Restricted stock units

 

3.5

 

3.7

 

3.7

 

3.8

 

3.3

 

3.5

 

3.3

 

(0.2

)

(6

)%

(0.2

)

(6

)%

(0.5

)

(13

)%

Total basic common shares outstanding

 

194.1

 

191.4

 

189.1

 

186.9

 

185.1

 

194.1

 

185.1

 

(9.0

)

(5

)%

(9.0

)

(5

)%

(1.8

)

(1

)%

Total potentially dilutive shares

 

3.5

 

3.3

 

3.4

 

3.2

 

2.7

 

3.5

 

2.7

 

(0.8

)

(23

)%

(0.8

)

(23

)%

(0.5

)

(16

)%

Total diluted shares

 

197.6

 

194.7

 

192.5

 

190.1

 

187.8

 

197.6

 

187.8

 

(9.8

)

(5

)%

(9.8

)

(5

)%

(2.3

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Returned to Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

$

103

 

$

112

 

$

111

 

$

109

 

$

110

 

$

103

 

$

110

 

$

7

 

7

%

$

7

 

7

%

$

1

 

1

%

Common stock share repurchases

 

$

354

 

$

352

 

$

331

 

$

335

 

$

349

 

$

354

 

$

349

 

$

(5

)

(1

)%

$

(5

)

(1

)%

$

14

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated Capital (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

$

466

 

$

508

 

$

510

 

$

510

 

$

516

 

$

466

 

$

516

 

$

50

 

11

%

$

50

 

11

%

$

6

 

1

%

Asset Management

 

1,860

 

1,860

 

1,905

 

1,884

 

1,872

 

1,860

 

1,872

 

12

 

1

%

12

 

1

%

(12

)

(1

)%

Annuities

 

2,800

 

2,552

 

1,938

 

1,982

 

1,987

 

2,800

 

1,987

 

(813

)

(29

)%

(813

)

(29

)%

5

 

 

Protection

 

1,839

 

1,879

 

1,897

 

1,962

 

1,975

 

1,839

 

1,975

 

136

 

7

%

136

 

7

%

13

 

1

%

Corporate & Other

 

2,921

 

2,833

 

3,950

 

3,884

 

3,856

 

2,921

 

3,856

 

935

 

32

%

935

 

32

%

(28

)

(1

)%

Total allocated capital

 

$

9,886

 

$

9,632

 

$

10,200

 

$

10,222

 

$

10,206

 

$

9,886

 

$

10,206

 

$

320

 

3

%

$

320

 

3

%

$

(16

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(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 and unamortized discount.  Allocated capital is not adjusted for non-operating items except for CIEs.

# Variance of greater than 100%.

 

8



 

GRAPHIC

Statistical Supplement Package

(unaudited)

 

First Quarter 2015

 

Segment Results

 

9



 

Ameriprise Financial, Inc.

Segment Summary

First Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Segment Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

1,149

 

$

1,198

 

$

1,210

 

$

1,249

 

$

1,228

 

$

1,149

 

$

1,228

 

$

79

 

7

%

$

79

 

7

%

$

(21

)

(2

)%

Operating expenses

 

968

 

1,004

 

1,005

 

1,037

 

1,018

 

968

 

1,018

 

50

 

5

%

50

 

5

%

(19

)

(2

)%

Pretax operating earnings

 

$

181

 

$

194

 

$

205

 

$

212

 

$

210

 

$

181

 

$

210

 

$

29

 

16

%

$

29

 

16

%

$

(2

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

466

 

$

508

 

$

510

 

$

510

 

$

516

 

$

466

 

$

516

 

$

50

 

11

%

$

50

 

11

%

$

6

 

1

%

Operating return on allocated capital (1)

 

102.4

%

106.0

%

112.3

%

120.5

%

121.6

%

102.4

%

121.6

%

19.2

%

 

 

19.2

%

 

 

1.1

%

 

 

Pretax operating margin

 

15.8

%

16.2

%

16.9

%

17.0

%

17.1

%

15.8

%

17.1

%

1.3

%

 

 

1.3

%

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

807

 

$

844

 

$

839

 

$

830

 

$

807

 

$

807

 

$

807

 

$

 

 

$

 

 

$

(23

)

(3

)%

Operating expenses

 

624

 

645

 

631

 

632

 

616

 

624

 

616

 

(8

)

(1

)%

(8

)

(1

)%

(16

)

(3

)%

Pretax operating earnings

 

$

183

 

$

199

 

$

208

 

$

198

 

$

191

 

$

183

 

$

191

 

$

8

 

4

%

$

8

 

4

%

$

(7

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,860

 

$

1,860

 

$

1,905

 

$

1,884

 

$

1,872

 

$

1,860

 

$

1,872

 

$

12

 

1

%

$

12

 

1

%

$

(12

)

(1

)%

Operating return on allocated capital (1)

 

28.3

%

28.5

%

30.1

%

31.3

%

31.5

%

28.3

%

31.5

%

3.2

%

 

 

3.2

%

 

 

0.2

%

 

 

Pretax operating margin

 

22.7

%

23.6

%

24.8

%

23.9

%

23.7

%

22.7

%

23.7

%

1.0

%

 

 

1.0

%

 

 

(0.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

807

 

$

844

 

$

839

 

$

830

 

$

807

 

$

807

 

$

807

 

$

 

 

$

 

 

$

(23

)

(3

)%

Distribution pass thru revenues

 

(228

)

(237

)

(233

)

(231

)

(218

)

(228

)

(218

)

10

 

4

%

10

 

4

%

13

 

6

%

Subadvisory and other pass thru revenues

 

(97

)

(106

)

(98

)

(99

)

(103

)

(97

)

(103

)

(6

)

(6

)%

(6

)

(6

)%

(4

)

(4

)%

Adjusted operating revenues (2)

 

$

482

 

$

501

 

$

508

 

$

500

 

$

486

 

$

482

 

$

486

 

$

4

 

1

%

$

4

 

1

%

$

(14

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

183

 

$

199

 

$

208

 

$

198

 

$

191

 

$

183

 

$

191

 

$

8

 

4

%

$

8

 

4

%

$

(7

)

(4

)%

Operating net investment income

 

(4

)

(13

)

(7

)

(6

)

(6

)

(4

)

(6

)

(2

)

(50

)%

(2

)

(50

)%

 

 

Amortization of intangibles

 

9

 

8

 

9

 

8

 

8

 

9

 

8

 

(1

)

(11

)%

(1

)

(11

)%

 

 

Adjusted operating earnings (2)

 

$

188

 

$

194

 

$

210

 

$

200

 

$

193

 

$

188

 

$

193

 

$

5

 

3

%

$

5

 

3

%

$

(7

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net pretax operating margin (2)(3)

 

39.0

%

38.7

%

41.3

%

40.0

%

39.7

%

39.0

%

39.7

%

0.7

%

 

 

0.7

%

 

 

(0.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

636

 

$

651

 

$

655

 

$

649

 

$

631

 

$

636

 

$

631

 

$

(5

)

(1

)%

$

(5

)

(1

)%

$

(18

)

(3

)%

Operating expenses

 

460

 

481

 

527

 

490

 

459

 

460

 

459

 

(1

)

 

(1

)

 

(31

)

(6

)%

Pretax operating earnings

 

$

176

 

$

170

 

$

128

 

$

159

 

$

172

 

$

176

 

$

172

 

$

(4

)

(2

)%

$

(4

)

(2

)%

$

13

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

2,800

 

$

2,552

 

$

1,938

 

$

1,982

 

$

1,987

 

$

2,800

 

$

1,987

 

$

(813

)

(29

)%

$

(813

)

(29

)%

$

5

 

 

Operating return on allocated capital (1)

 

18.4

%

19.6

%

18.3

%

19.3

%

20.7

%

18.4

%

20.7

%

2.3

%

 

 

2.3

%

 

 

1.4

%

 

 

Pretax operating margin

 

27.7

%

26.1

%

19.5

%

24.5

%

27.3

%

27.7

%

27.3

%

(0.4

)%

 

 

(0.4

)%

 

 

2.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Protection

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

555

 

$

579

 

$

553

 

$

600

 

$

590

 

$

555

 

$

590

 

$

35

 

6

%

$

35

 

6

%

$

(10

)

(2

)%

Operating expenses

 

496

 

488

 

487

 

570

 

539

 

496

 

539

 

43

 

9

%

43

 

9

%

(31

)

(5

)%

Pretax operating earnings

 

$

59

 

$

91

 

$

66

 

$

30

 

$

51

 

$

59

 

$

51

 

$

(8

)

(14

)%

$

(8

)

(14

)%

$

21

 

70

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,839

 

$

1,879

 

$

1,897

 

$

1,962

 

$

1,975

 

$

1,839

 

$

1,975

 

$

136

 

7

%

$

136

 

7

%

$

13

 

1

%

Operating return on allocated capital (1)

 

11.7

%

11.5

%

11.4

%

9.6

%

9.1

%

11.7

%

9.1

%

(2.6

)%

 

 

(2.6

)%

 

 

(0.5

)%

 

 

Pretax operating margin

 

10.6

%

15.7

%

11.9

%

5.0

%

8.6

%

10.6

%

8.6

%

(2.0

)%

 

 

(2.0

)%

 

 

3.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate & Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

6

 

$

(2

)

$

(1

)

$

1

 

$

(6

)

$

6

 

$

(6

)

$

(12

)

#

 

$

(12

)

#

 

$

(7

)

#

 

Operating expenses

 

61

 

73

 

52

 

48

 

56

 

61

 

56

 

(5

)

(8

)%

(5

)

(8

)%

8

 

17

%

Pretax operating loss

 

$

(55

)

$

(75

)

$

(53

)

$

(47

)

$

(62

)

$

(55

)

$

(62

)

$

(7

)

(13

)%

$

(7

)

(13

)%

$

(15

)

(32

)%

 


(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.

(2)  See non-GAAP financial information on pg 34.

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

# Variance of greater than 100%.

 

10



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2015

 

Advice & Wealth Management Segment

 

11



 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment

First Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

555

 

$

604

 

$

621

 

$

633

 

$

637

 

$

555

 

$

637

 

$

82

 

15

%

$

82

 

15

%

$

4

 

1

%

Distribution fees

 

547

 

551

 

544

 

571

 

543

 

547

 

543

 

(4

)

(1

)%

(4

)

(1

)%

(28

)

(5

)%

Net investment income

 

34

 

34

 

33

 

35

 

35

 

34

 

35

 

1

 

3

%

1

 

3

%

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

20

 

16

 

19

 

17

 

20

 

20

 

20

 

 

 

 

 

3

 

18

%

Total revenues

 

1,156

 

1,205

 

1,217

 

1,256

 

1,235

 

1,156

 

1,235

 

79

 

7

%

79

 

7

%

(21

)

(2

)%

Banking and deposit interest expense

 

7

 

7

 

7

 

7

 

7

 

7

 

7

 

 

 

 

 

 

 

Operating total net revenues

 

1,149

 

1,198

 

1,210

 

1,249

 

1,228

 

1,149

 

1,228

 

79

 

7

%

79

 

7

%

(21

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

707

 

734

 

742

 

760

 

757

 

707

 

757

 

50

 

7

%

50

 

7

%

(3

)

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

2

 

2

 

1

 

1

 

2

 

2

 

2

 

 

 

 

 

1

 

#

 

General and administrative expense

 

259

 

268

 

262

 

276

 

259

 

259

 

259

 

 

 

 

 

(17

)

(6

)%

Operating expenses

 

968

 

1,004

 

1,005

 

1,037

 

1,018

 

968

 

1,018

 

50

 

5

%

50

 

5

%

(19

)

(2

)%

Pretax operating earnings

 

$

181

 

$

194

 

$

205

 

$

212

 

$

210

 

$

181

 

$

210

 

$

29

 

16

%

$

29

 

16

%

$

(2

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

15.8

%

16.2

%

16.9

%

17.0

%

17.1

%

15.8

%

17.1

%

1.3

%

 

 

1.3

%

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

466

 

$

508

 

$

510

 

$

510

 

$

516

 

$

466

 

$

516

 

$

50

 

11

%

$

50

 

11

%

$

6

 

1

%

Operating return on allocated capital (1)

 

102.4

%

106.0

%

112.3

%

120.5

%

121.6

%

102.4

%

121.6

%

19.2

%

 

 

19.2

%

 

 

1.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

On-balance sheet deposits

 

$

7,222

 

$

7,295

 

$

7,522

 

$

7,674

 

$

7,885

 

$

7,222

 

$

7,885

 

$

663

 

9

%

$

663

 

9

%

$

211

 

3

%

 


(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.

# Variance of greater than 100%.

 

12



 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment

First Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

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

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates and Banking - Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

12

 

$

9

 

$

9

 

$

10

 

$

10

 

$

12

 

$

10

 

$

(2

)

(17

)%

$

(2

)

(17

)%

$

 

 

Allocated capital

 

$

229

 

$

235

 

$

237

 

$

236

 

$

241

 

$

229

 

$

241

 

$

12

 

5

%

$

12

 

5

%

$

5

 

2

%

Operating return on allocated capital (1)

 

12.7

%

12.6

%

12.5

%

12.9

%

12.0

%

12.7

%

12.0

%

(0.7

)%

 

 

(0.7

)%

 

 

(0.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth Management & Distribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

169

 

$

185

 

$

196

 

$

202

 

$

200

 

$

169

 

$

200

 

$

31

 

18

%

$

31

 

18

%

$

(2

)

(1

)%

Allocated capital

 

$

237

 

$

273

 

$

273

 

$

274

 

$

275

 

$

237

 

$

275

 

$

38

 

16

%

$

38

 

16

%

$

1

 

 

Operating return on allocated capital (1)

 

184.8

%

191.3

%

203.0

%

217.1

%

218.5

%

184.8

%

218.5

%

33.7

%

 

 

33.7

%

 

 

1.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded financial plan net cash sales

 

$

60

 

$

61

 

$

60

 

$

70

 

$

62

 

$

60

 

$

62

 

$

2

 

3

%

$

2

 

3

%

$

(8

)

(11

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Advisors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee advisors

 

2,155

 

2,115

 

2,100

 

2,083

 

2,084

 

2,155

 

2,084

 

(71

)

(3

)%

(71

)

(3

)%

1

 

 

Franchisee advisors

 

7,549

 

7,577

 

7,596

 

7,589

 

7,607

 

7,549

 

7,607

 

58

 

1

%

58

 

1

%

18

 

 

Total branded financial advisors

 

9,704

 

9,692

 

9,696

 

9,672

 

9,691

 

9,704

 

9,691

 

(13

)

 

(13

)

 

19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues per financial advisor (in thousands) (2)

 

$

118

 

$

124

 

$

125

 

$

129

 

$

127

 

$

118

 

$

127

 

$

9

 

8

%

$

9

 

8

%

$

(2

)

(2

)%

Operating total net revenues per financial advisor-trailing twelve months (in thousands) (3)

 

$

454

 

$

468

 

$

483

 

$

496

 

$

505

 

$

454

 

$

505

 

$

51

 

11

%

$

51

 

11

%

$

9

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisor Retention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee

 

91.5

%

91.1

%

91.9

%

91.2

%

91.0

%

91.5

%

91.0

%

(0.5

)%

 

 

(0.5

)%

 

 

(0.2

)%

 

 

Franchisee

 

94.7

%

94.7

%

94.6

%

94.5

%

94.3

%

94.7

%

94.3

%

(0.4

)%

 

 

(0.4

)%

 

 

(0.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Client Assets (at period end)

 

$

418,384

 

$

434,659

 

$

433,804

 

$

444,391

 

$

452,969

 

$

418,384

 

$

452,969

 

$

34,585

 

8

%

$

34,585

 

8

%

$

8,578

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Wrap Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

153,512

 

$

159,358

 

$

167,805

 

$

169,227

 

$

174,670

 

$

153,512

 

$

174,670

 

$

21,158

 

14

%

$

21,158

 

14

%

$

5,443

 

3

%

Net flows (4)

 

4,205

 

3,019

 

3,834

 

3,130

 

2,802

 

4,205

 

2,802

 

(1,403

)

(33

)%

(1,403

)

(33

)%

(328

)

(10

)%

Market appreciation (depreciation) and other (4)

 

1,641

 

5,428

 

(2,412

)

2,313

 

2,572

 

1,641

 

2,572

 

931

 

57

%

931

 

57

%

259

 

11

%

Total wrap ending assets

 

$

159,358

 

$

167,805

 

$

169,227

 

$

174,670

 

$

180,044

 

$

159,358

 

$

180,044

 

$

20,686

 

13

%

$

20,686

 

13

%

$

5,374

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory wrap account assets ending balance (5)

 

$

158,354

 

$

166,759

 

$

168,157

 

$

173,489

 

$

178,749

 

$

158,354

 

$

178,749

 

20,395

 

13

%

20,395

 

13

%

5,260

 

3

%

 


(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.

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

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

(4)                                     Beginning April 1, 2014, net flows reflect all additions and withdrawals to and from the Ameriprise Strategic Portfolio Service (“SPS”) wrap account program.  For all periods presented prior to April 1, 2014, additions and withdrawals to and from certain non-billable investments of this program were reflected in the Market appreciation (depreciation) and other line and purchases and sales of billable investments were reported in the Net flows line.  Net flows for the SPS program are now reported on a consistent basis with our other wrap account programs.

(5)                                     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.

 

13



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2015

 

Asset Management Segment

 

14



 

Ameriprise Financial, Inc.

Asset Management Segment

First Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

680

 

$

707

 

$

706

 

$

698

 

$

674

 

$

680

 

$

674

 

$

(6

)

(1

)%

$

(6

)

(1

)%

$

(24

)

(3

)%

Distribution fees

 

121

 

123

 

124

 

125

 

125

 

121

 

125

 

4

 

3

%

4

 

3

%

 

 

Net investment income

 

4

 

13

 

7

 

6

 

6

 

4

 

6

 

2

 

50

%

2

 

50

%

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

2

 

1

 

2

 

1

 

2

 

2

 

2

 

 

 

 

 

1

 

#

 

Total revenues

 

807

 

844

 

839

 

830

 

807

 

807

 

807

 

 

 

 

 

(23

)

(3

)%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

807

 

844

 

839

 

830

 

807

 

807

 

807

 

 

 

 

 

(23

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

284

 

291

 

288

 

285

 

278

 

284

 

278

 

(6

)

(2

)%

(6

)

(2

)%

(7

)

(2

)%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

4

 

4

 

4

 

3

 

3

 

4

 

3

 

(1

)

(25

)%

(1

)

(25

)%

 

 

Interest and debt expense

 

6

 

7

 

6

 

7

 

6

 

6

 

6

 

 

 

 

 

(1

)

(14

)%

General and administrative expense

 

330

 

343

 

333

 

337

 

329

 

330

 

329

 

(1

)

 

(1

)

 

(8

)

(2

)%

Operating expenses

 

624

 

645

 

631

 

632

 

616

 

624

 

616

 

(8

)

(1

)%

(8

)

(1

)%

(16

)

(3

)%

Pretax operating earnings

 

$

183

 

$

199

 

$

208

 

$

198

 

$

191

 

$

183

 

$

191

 

$

8

 

4

%

$

8

 

4

%

$

(7

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

22.7

%

23.6

%

24.8

%

23.9

%

23.7

%

22.7

%

23.7

%

1.0

%

 

 

1.0

%

 

 

(0.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

807

 

$

844

 

$

839

 

$

830

 

$

807

 

$

807

 

$

807

 

$

 

 

$

 

 

$

(23

)

(3

)%

Distribution pass thru revenues

 

(228

)

(237

)

(233

)

(231

)

(218

)

(228

)

(218

)

10

 

4

%

10

 

4

%

13

 

6

%

Subadvisory and other pass thru revenues

 

(97

)

(106

)

(98

)

(99

)

(103

)

(97

)

(103

)

(6

)

(6

)%

(6

)

(6

)%

(4

)

(4

)%

Adjusted operating revenues (1)

 

$

482

 

$

501

 

$

508

 

$

500

 

$

486

 

$

482

 

$

486

 

$

4

 

1

%

$

4

 

1

%

$

(14

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

183

 

$

199

 

$

208

 

$

198

 

$

191

 

$

183

 

$

191

 

$

8

 

4

%

$

8

 

4

%

$

(7

)

(4

)%

Operating net investment income

 

(4

)

(13

)

(7

)

(6

)

(6

)

(4

)

(6

)

(2

)

(50

)%

(2

)

(50

)%

 

 

Amortization of intangibles

 

9

 

8

 

9

 

8

 

8

 

9

 

8

 

(1

)

(11

)%

(1

)

(11

)%

 

 

Adjusted operating earnings (1)

 

$

188

 

$

194

 

$

210

 

$

200

 

$

193

 

$

188

 

$

193

 

$

5

 

3

%

$

5

 

3

%

$

(7

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net pretax operating margin (1)(2)

 

39.0

%

38.7

%

41.3

%

40.0

%

39.7

%

39.0

%

39.7

%

0.7

%

 

 

0.7

%

 

 

(0.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,860

 

$

1,860

 

$

1,905

 

$

1,884

 

$

1,872

 

$

1,860

 

$

1,872

 

$

12

 

1

%

$

12

 

1

%

$

(12

)

(1

)%

Operating return on allocated capital (3)

 

28.3

%

28.5

%

30.1

%

31.3

%

31.5

%

28.3

%

31.5

%

3.2

%

 

 

3.2

%

 

 

0.2

%

 

 

 


(1)       See non-GAAP financial information on pg 34.

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

(3)       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.

# Variance of greater than 100%.

 

15



 

Ameriprise Financial, Inc.

Asset Management Segment

First Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Total Managed Asset Net Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Columbia managed asset net flows

 

$

(2,675

)

$

188

 

$

(2,317

)

$

7,136

 

$

(3,199

)

$

(2,675

)

$

(3,199

)

$

(524

)

(20

)%

$

(524

)

(20

)%

$

(10,335

)

#

 

Threadneedle managed asset net flows

 

(1,277

)

4,284

 

(1,889

)

(1,073

)

(1,116

)

(1,277

)

(1,116

)

161

 

13

%

161

 

13

%

(43

)

(4

)%

Sub-advised eliminations

 

55

 

(48

)

89

 

(381

)

(1,506

)

55

 

(1,506

)

(1,561

)

#

 

(1,561

)

#

 

(1,125

)

#

 

Total managed asset net flows

 

$

(3,897

)

$

4,424

 

$

(4,117

)

$

5,682

 

$

(5,821

)

$

(3,897

)

$

(5,821

)

$

(1,924

)

(49

)%

$

(1,924

)

(49

)%

$

(11,503

)

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Managed Assets Reconciliations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Columbia managed assets

 

$

357,906

 

$

363,506

 

$

357,583

 

$

361,190

 

$

364,186

 

$

357,906

 

$

364,186

 

$

6,280

 

2

%

$

6,280

 

2

%

$

2,996

 

1

%

Threadneedle managed assets

 

149,260

 

158,149

 

150,375

 

147,883

 

147,235

 

149,260

 

147,235

 

(2,025

)

(1

)%

(2,025

)

(1

)%

(648

)

 

Sub-advised eliminations

 

(3,270

)

(3,395

)

(3,165

)

(3,485

)

(5,111

)

(3,270

)

(5,111

)

(1,841

)

(56

)%

(1,841

)

(56

)%

(1,626

)

(47

)%

Total managed assets

 

$

503,896

 

$

518,260

 

$

504,793

 

$

505,588

 

$

506,310

 

$

503,896

 

$

506,310

 

$

2,414

 

 

$

2,414

 

 

$

722

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Managed Assets by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

$

278,065

 

$

289,370

 

$

277,341

 

$

278,052

 

$

279,395

 

$

278,065

 

$

279,395

 

$

1,330

 

 

$

1,330

 

 

$

1,343

 

 

Fixed income

 

195,053

 

196,379

 

194,613

 

193,355

 

192,009

 

195,053

 

192,009

 

(3,044

)

(2

)%

(3,044

)

(2

)%

(1,346

)

(1

)%

Money market

 

6,527

 

6,321

 

6,561

 

6,660

 

6,918

 

6,527

 

6,918

 

391

 

6

%

391

 

6

%

258

 

4

%

Alternative

 

6,790

 

7,164

 

6,982

 

7,453

 

7,372

 

6,790

 

7,372

 

582

 

9

%

582

 

9

%

(81

)

(1

)%

Hybrid and other

 

17,461

 

19,026

 

19,296

 

20,068

 

20,616

 

17,461

 

20,616

 

3,155

 

18

%

3,155

 

18

%

548

 

3

%

Total managed assets by type

 

$

503,896

 

$

518,260

 

$

504,793

 

$

505,588

 

$

506,310

 

$

503,896

 

$

506,310

 

$

2,414

 

 

$

2,414

 

 

$

722

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Managed Assets by Type (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

$

274,903

 

$

280,394

 

$

284,091

 

$

279,786

 

$

279,148

 

$

274,903

 

$

279,148

 

$

4,245

 

2

%

$

4,245

 

2

%

$

(638

)

 

Fixed income

 

196,320

 

196,187

 

196,100

 

194,701

 

193,845

 

196,320

 

193,845

 

(2,475

)

(1

)%

(2,475

)

(1

)%

(856

)

 

Money market

 

6,716

 

6,582

 

6,512

 

6,538

 

6,457

 

6,716

 

6,457

 

(259

)

(4

)%

(259

)

(4

)%

(81

)

(1

)%

Alternative

 

6,708

 

6,869

 

7,083

 

7,383

 

7,411

 

6,708

 

7,411

 

703

 

10

%

703

 

10

%

28

 

 

Hybrid and other

 

16,604

 

18,074

 

19,178

 

19,638

 

20,341

 

16,604

 

20,341

 

3,737

 

23

%

3,737

 

23

%

703

 

4

%

Total average managed assets by type

 

$

501,251

 

$

508,106

 

$

512,964

 

$

508,046

 

$

507,202

 

$

501,251

 

$

507,202

 

$

5,951

 

1

%

$

5,951

 

1

%

$

(844

)

 

 


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

# Variance of greater than 100%.

 

16



 

Ameriprise Financial, Inc.

Asset Management Segment - Columbia

First Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Columbia Managed Assets Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

239,393

 

$

239,451

 

$

243,796

 

$

237,034

 

$

237,652

 

$

239,393

 

$

237,652

 

$

(1,741

)

(1

)%

$

(1,741

)

(1

)%

$

618

 

 

Mutual fund inflows

 

9,609

 

7,653

 

9,147

 

9,545

 

9,227

 

9,609

 

9,227

 

(382

)

(4

)%

(382

)

(4

)%

(318

)

(3

)%

Mutual fund outflows

 

(12,420

)

(10,154

)

(12,002

)

(12,779

)

(12,292

)

(12,420

)

(12,292

)

128

 

1

%

128

 

1

%

487

 

4

%

Net VP/VIT fund flows

 

(178

)

(255

)

(236

)

(255

)

(265

)

(178

)

(265

)

(87

)

(49

)%

(87

)

(49

)%

(10

)

(4

)%

Net new flows

 

(2,989

)

(2,756

)

(3,091

)

(3,489

)

(3,330

)

(2,989

)

(3,330

)

(341

)

(11

)%

(341

)

(11

)%

159

 

5

%

Reinvested dividends

 

398

 

3,452

 

574

 

8,995

 

469

 

398

 

469

 

71

 

18

%

71

 

18

%

(8,526

)

(95

)%

Net flows

 

(2,591

)

696

 

(2,517

)

5,506

 

(2,861

)

(2,591

)

(2,861

)

(270

)

(10

)%

(270

)

(10

)%

(8,367

)

#

 

Distributions

 

(528

)

(4,052

)

(709

)

(10,652

)

(595

)

(528

)

(595

)

(67

)

(13

)%

(67

)

(13

)%

10,057

 

94

%

Market appreciation (depreciation) and other

 

3,177

 

7,701

 

(3,536

)

5,764

 

5,305

 

3,177

 

5,305

 

2,128

 

67

%

2,128

 

67

%

(459

)

(8

)%

Total ending assets

 

239,451

 

243,796

 

237,034

 

237,652

 

239,501

 

239,451

 

239,501

 

50

 

 

50

 

 

1,849

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of total retail assets sub-advised

 

20.5

%

20.2

%

20.2

%

20.2

%

21.6

%

20.5

%

21.6

%

1.1

%

 

 

1.1

%

 

 

1.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

75,648

 

76,463

 

77,627

 

78,019

 

80,709

 

75,648

 

80,709

 

5,061

 

7

%

5,061

 

7

%

2,690

 

3

%

Inflows

 

4,547

 

4,601

 

5,512

 

5,806

 

4,946

 

4,547

 

4,946

 

399

 

9

%

399

 

9

%

(860

)

(15

)%

Outflows

 

(4,945

)

(5,380

)

(5,191

)

(4,702

)

(5,301

)

(4,945

)

(5,301

)

(356

)

(7

)%

(356

)

(7

)%

(599

)

(13

)%

Net flows

 

(398

)

(779

)

321

 

1,104

 

(355

)

(398

)

(355

)

43

 

11

%

43

 

11

%

(1,459

)

#

 

Market appreciation (depreciation) and other (1)

 

1,213

 

1,943

 

71

 

1,586

 

1,398

 

1,213

 

1,398

 

185

 

15

%

185

 

15

%

(188

)

(12

)%

Total ending assets

 

76,463

 

77,627

 

78,019

 

80,709

 

81,752

 

76,463

 

81,752

 

5,289

 

7

%

5,289

 

7

%

1,043

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

5,643

 

6,029

 

6,390

 

6,230

 

6,745

 

5,643

 

6,745

 

1,102

 

20

%

1,102

 

20

%

515

 

8

%

Inflows

 

454

 

603

 

4

 

625

 

151

 

454

 

151

 

(303

)

(67

)%

(303

)

(67

)%

(474

)

(76

)%

Outflows

 

(140

)

(332

)

(125

)

(99

)

(134

)

(140

)

(134

)

6

 

4

%

6

 

4

%

(35

)

(35

)%

Net flows

 

314

 

271

 

(121

)

526

 

17

 

314

 

17

 

(297

)

(95

)%

(297

)

(95

)%

(509

)

(97

)%

Market appreciation (depreciation) and other

 

72

 

90

 

(39

)

(11

)

(57

)

72

 

(57

)

(129

)

#

 

(129

)

#

 

(46

)

#

 

Total ending assets

 

6,029

 

6,390

 

6,230

 

6,745

 

6,705

 

6,029

 

6,705

 

676

 

11

%

676

 

11

%

(40

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliated General Account Assets

 

35,963

 

35,693

 

36,300

 

36,084

 

36,228

 

35,963

 

36,228

 

265

 

1

%

265

 

1

%

144

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Columbia managed assets

 

$

357,906

 

$

363,506

 

$

357,583

 

$

361,190

 

$

364,186

 

$

357,906

 

$

364,186

 

$

6,280

 

2

%

$

6,280

 

2

%

$

2,996

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Columbia net flows

 

$

(2,675

)

$

188

 

$

(2,317

)

$

7,136

 

$

(3,199

)

$

(2,675

)

$

(3,199

)

$

(524

)

(20

)%

$

(524

)

(20

)%

$

(10,335

)

#

 

 


(1)       Included in Market appreciation (depreciation) and other for Institutional funds in the 4th quarter of 2014 are ($0.3B) due to the transfer of assets from Separately Managed Accounts (SMAs) to Unified Managed Accounts (UMAs).

# Variance of greater than 100%.

 

17



 

Ameriprise Financial, Inc.

Asset Management Segment - Threadneedle

First Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Threadneedle Managed Assets Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

 

50,620

 

$

 

50,693

 

$

 

52,082

 

$

 

48,235

 

$

 

46,523

 

$

 

50,620

 

$

 

46,523

 

$

 

(4,097

)

(8

)%

$

 

(4,097

)

(8

)%

$

 

(1,712

)

(4

)%

Mutual fund inflows

 

6,857

 

5,896

 

4,832

 

5,799

 

5,555

 

6,857

 

5,555

 

(1,302

)

(19

)%

(1,302

)

(19

)%

(244

)

(4

)%

Mutual fund outflows

 

(7,774

)

(5,951

)

(5,915

)

(6,322

)

(5,080

)

(7,774

)

(5,080

)

2,694

 

35

%

2,694

 

35

%

1,242

 

20

%

Net new flows

 

(917

)

(55

)

(1,083

)

(523

)

475

 

(917

)

475

 

1,392

 

#

 

1,392

 

#

 

998

 

#

 

Reinvested dividends

 

23

 

41

 

40

 

71

 

33

 

23

 

33

 

10

 

43

%

10

 

43

%

(38

)

(54

)%

Net flows

 

(894

)

(14

)

(1,043

)

(452

)

508

 

(894

)

508

 

1,402

 

#

 

1,402

 

#

 

960

 

#

 

Distributions

 

(118

)

(187

)

(147

)

(237

)

(135

)

(118

)

(135

)

(17

)

(14

)%

(17

)

(14

)%

102

 

43

%

Market appreciation (depreciation)

 

455

 

(52

)

(420

)

807

 

2,381

 

455

 

2,381

 

1,926

 

#

 

1,926

 

#

 

1,574

 

#

 

Foreign currency translation (1)

 

410

 

1,228

 

(2,408

)

(2,053

)

(2,345

)

410

 

(2,345

)

(2,755

)

#

 

(2,755

)

#

 

(292

)

(14

)%

Other

 

220

 

414

 

171

 

223

 

192

 

220

 

192

 

(28

)

(13

)%

(28

)

(13

)%

(31

)

(14

)%

Total ending assets

 

50,693

 

52,082

 

48,235

 

46,523

 

47,124

 

50,693

 

47,124

 

(3,569

)

(7

)%

(3,569

)

(7

)%

601

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

96,065

 

97,806

 

105,293

 

101,388

 

100,652

 

96,065

 

100,652

 

4,587

 

5

%

4,587

 

5

%

(736

)

(1

)%

Inflows

 

1,923

 

7,746

 

1,834

 

1,778

 

1,919

 

1,923

 

1,919

 

(4

)

 

(4

)

 

141

 

8

%

Outflows

 

(2,271

)

(3,432

)

(2,703

)

(2,397

)

(3,542

)

(2,271

)

(3,542

)

(1,271

)

(56

)%

(1,271

)

(56

)%

(1,145

)

(48

)%

Net flows

 

(348

)

4,314

 

(869

)

(619

)

(1,623

)

(348

)

(1,623

)

(1,275

)

#

 

(1,275

)

#

 

(1,004

)

#

 

Market appreciation (depreciation)

 

555

 

16

 

1,195

 

3,614

 

4,757

 

555

 

4,757

 

4,202

 

#

 

4,202

 

#

 

1,143

 

32

%

Foreign currency translation (1)

 

797

 

2,349

 

(4,972

)

(4,312

)

(5,000

)

797

 

(5,000

)

(5,797

)

#

 

(5,797

)

#

 

(688

)

(16

)%

Other

 

737

 

808

 

741

 

581

 

658

 

737

 

658

 

(79

)

(11

)%

(79

)

(11

)%

77

 

13

%

Total ending assets

 

97,806

 

105,293

 

101,388

 

100,652

 

99,444

 

97,806

 

99,444

 

1,638

 

2

%

1,638

 

2

%

(1,208

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

758

 

761

 

774

 

752

 

708

 

758

 

708

 

(50

)

(7

)%

(50

)

(7

)%

(44

)

(6

)%

Inflows

 

 

 

25

 

 

11

 

 

11

 

11

 

 

11

 

 

11

 

 

Outflows

 

(35

)

(16

)

(2

)

(2

)

(12

)

(35

)

(12

)

23

 

66

%

23

 

66

%

(10

)

#

 

Net flows

 

(35

)

(16

)

23

 

(2

)

(1

)

(35

)

(1

)

34

 

97

%

34

 

97

%

1

 

50

%

Market appreciation (depreciation)

 

18

 

(1

)

(15

)

(17

)

(13

)

18

 

(13

)

(31

)

#

 

(31

)

#

 

4

 

24

%

Foreign currency translation (1)

 

6

 

20

 

(38

)

(32

)

(33

)

6

 

(33

)

(39

)

#

 

(39

)

#

 

(1

)

(3

)%

Other

 

14

 

10

 

8

 

7

 

6

 

14

 

6

 

(8

)

(57

)%

(8

)

(57

)%

(1

)

(14

)%

Total ending assets

 

761

 

774

 

752

 

708

 

667

 

761

 

667

 

(94

)

(12

)%

(94

)

(12

)%

(41

)

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Threadneedle managed assets

 

$

 

149,260

 

$

 

158,149

 

$

 

150,375

 

$

 

147,883

 

$

 

147,235

 

$

 

149,260

 

$

 

147,235

 

$

 

(2,025

)

(1

)%

$

 

(2,025

)

(1

)%

$

 

(648

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Threadneedle net flows

 

$

 

(1,277

)

$

 

4,284

 

$

 

(1,889

)

$

 

(1,073

)

$

(1,116

)

$

(1,277

)

$

(1,116

)

$

161

 

13

%

$

161

 

13

%

$

(43

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Threadneedle net flows excluding legacy insurance mandates

 

$

 

(248

)

$

 

5,032

 

$

 

(1,051

)

$

 

(286

)

$

 

(303

)

$

 

(248

)

$

 

(303

)

$

 

(55

)

(22

)%

$

 

(55

)

(22

)%

$

 

(17

)

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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

# Variance of greater than 100%.

 

18



 

Ameriprise Financial, Inc.

Asset Management Segment - Columbia

First Quarter 2015

 

Mutual Fund Rankings in top 2 Lipper Quartiles

 

 

 

 

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

Domestic Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

55

%

58

%

66

%

61

%

55

%

 

 

3 year

 

50

%

50

%

73

%

68

%

65

%

 

 

5 year

 

68

%

65

%

54

%

57

%

54

%

Asset weighted

 

1 year

 

41

%

50

%

62

%

58

%

61

%

 

 

3 year

 

70

%

48

%

68

%

62

%

64

%

 

 

5 year

 

76

%

76

%

60

%

62

%

63

%

International Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

60

%

40

%

73

%

50

%

71

%

 

 

3 year

 

56

%

50

%

59

%

68

%

67

%

 

 

5 year

 

53

%

41

%

60

%

65

%

63

%

Asset weighted

 

1 year

 

28

%

16

%

87

%

74

%

84

%

 

 

3 year

 

27

%

77

%

40

%

45

%

41

%

 

 

5 year

 

29

%

26

%

38

%

45

%

41

%

Taxable Fixed Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

50

%

33

%

44

%

50

%

65

%

 

 

3 year

 

65

%

61

%

56

%

61

%

75

%

 

 

5 year

 

53

%

47

%

59

%

65

%

75

%

Asset weighted

 

1 year

 

53

%

37

%

66

%

71

%

77

%

 

 

3 year

 

83

%

83

%

69

%

83

%

84

%

 

 

5 year

 

60

%

52

%

70

%

83

%

84

%

Tax Exempt Fixed Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

100

%

100

%

94

%

89

%

89

%

 

 

3 year

 

100

%

100

%

94

%

100

%

100

%

 

 

5 year

 

94

%

94

%

100

%

100

%

100

%

Asset weighted

 

1 year

 

100

%

100

%

84

%

78

%

84

%

 

 

3 year

 

100

%

100

%

84

%

100

%

100

%

 

 

5 year

 

84

%

84

%

100

%

100

%

100

%

Asset Allocation Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

33

%

50

%

58

%

58

%

82

%

 

 

3 year

 

55

%

64

%

64

%

64

%

78

%

 

 

5 year

 

78

%

89

%

89

%

89

%

89

%

Asset weighted

 

1 year

 

42

%

49

%

65

%

67

%

89

%

 

 

3 year

 

68

%

75

%

75

%

76

%

77

%

 

 

5 year

 

91

%

97

%

97

%

97

%

97

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of 4- or 5-star Morningstar rated funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall

 

 

 

51

 

51

 

54

 

51

 

48

 

3 year

 

 

 

43

 

43

 

48

 

42

 

43

 

5 year

 

 

 

44

 

44

 

46

 

46

 

50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of 4- or 5-star Morningstar rated funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall

 

 

 

51

%

50

%

51

%

49

%

48

%

3 year

 

 

 

43

%

43

%

46

%

40

%

43

%

5 year

 

 

 

46

%

46

%

47

%

47

%

53

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of 4- or 5-star Morningstar rated assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall

 

 

 

52

%

53

%

56

%

55

%

56

%

3 year

 

 

 

38

%

40

%

38

%

35

%

40

%

5 year

 

 

 

42

%

40

%

52

%

54

%

57

%

 

 

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.  In instances where a fund’s Class Z shares do not have a full five year track record, performance for an older share class of the same fund, typically Class A shares, is utilized for the period before Class Z shares were launched.  No adjustments to the historical track records are made to account for differences in fund expenses between share classes of a fund.

 

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

 

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

 

19



 

Ameriprise Financial, Inc.

Asset Management Segment - Threadneedle

First Quarter 2015

 

 

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

 

 

 

 

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

60

%

62

%

62

%

61

%

71

%

 

 

3 year

 

80

%

73

%

73

%

64

%

68

%

 

 

5 year

 

65

%

81

%

84

%

83

%

83

%

Asset weighted

 

1 year

 

42

%

53

%

57

%

63

%

78

%

 

 

3 year

 

87

%

78

%

61

%

59

%

61

%

 

 

5 year

 

68

%

89

%

84

%

86

%

87

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

61

%

65

%

70

%

65

%

65

%

 

 

3 year

 

73

%

73

%

74

%

68

%

59

%

 

 

5 year

 

67

%

62

%

62

%

68

%

68

%

Asset weighted

 

1 year

 

55

%

46

%

65

%

65

%

63

%

 

 

3 year

 

57

%

59

%

62

%

71

%

37

%

 

 

5 year

 

53

%

46

%

49

%

51

%

47

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocation (Managed) Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

86

%

88

%

63

%

57

%

75

%

 

 

3 year

 

100

%

67

%

83

%

83

%

83

%

 

 

5 year

 

67

%

67

%

67

%

83

%

83

%

Asset weighted

 

1 year

 

62

%

63

%

51

%

68

%

79

%

 

 

3 year

 

100

%

37

%

93

%

93

%

93

%

 

 

5 year

 

55

%

55

%

55

%

93

%

93

%

 

The performance of each fund is measured on a consistent basis against the most appropriate benchmark - a peer group of similar funds or an index.

 

Equal weighted:  Counts the number of funds with above median ranking (if measured against peer group) or above index performance (if measured against an index) divided by the total number of funds.  Asset size is not a factor.

 

Asset weighted:  Sums the assets of the funds with above median ranking (if measured against peer group) or above index performance (if measured against an index) divided by the total sum of assets in the funds.  Funds with more assets will receive a greater share of the total percentage above or below median or index.

 

Aggregated Allocation (Managed) Funds include funds that invest in other funds of the Threadneedle range including those funds that invest in both equity and fixed income.

 

Aggregated Threadneedle data includes funds on the Threadneedle platform sub-advised by Columbia as well as advisors not affiliated with Ameriprise Financial, Inc.

 

20



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2015

 

Annuities Segment

 

21



 

Ameriprise Financial, Inc.

Annuities Segment

First Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

183

 

$

189

 

$

191

 

$

193

 

$

190

 

$

183

 

$

190

 

$

7

 

4

%

$

7

 

4

%

$

(3

)

(2

)%

Distribution fees

 

88

 

91

 

91

 

90

 

89

 

88

 

89

 

1

 

1

%

1

 

1

%

(1

)

(1

)%

Net investment income

 

242

 

234

 

235

 

230

 

221

 

242

 

221

 

(21

)

(9

)%

(21

)

(9

)%

(9

)

(4

)%

Premiums

 

26

 

32

 

26

 

25

 

22

 

26

 

22

 

(4

)

(15

)%

(4

)

(15

)%

(3

)

(12

)%

Other revenues

 

97

 

105

 

112

 

111

 

109

 

97

 

109

 

12

 

12

%

12

 

12

%

(2

)

(2

)%

Total revenues

 

636

 

651

 

655

 

649

 

631

 

636

 

631

 

(5

)

(1

)%

(5

)

(1

)%

(18

)

(3

)%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

636

 

651

 

655

 

649

 

631

 

636

 

631

 

(5

)

(1

)%

(5

)

(1

)%

(18

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

107

 

109

 

110

 

113

 

108

 

107

 

108

 

1

 

1

%

1

 

1

%

(5

)

(4

)%

Interest credited to fixed accounts

 

148

 

139

 

136

 

133

 

127

 

148

 

127

 

(21

)

(14

)%

(21

)

(14

)%

(6

)

(5

)%

Benefits, claims, losses and settlement expenses

 

86

 

113

 

136

 

128

 

115

 

86

 

115

 

29

 

34

%

29

 

34

%

(13

)

(10

)%

Amortization of deferred acquisition costs

 

54

 

51

 

78

 

52

 

43

 

54

 

43

 

(11

)

(20

)%

(11

)

(20

)%

(9

)

(17

)%

Interest and debt expense

 

10

 

9

 

9

 

10

 

10

 

10

 

10

 

 

 

 

 

 

 

General and administrative expense

 

55

 

60

 

58

 

54

 

56

 

55

 

56

 

1

 

2

%

1

 

2

%

2

 

4

%

Operating expenses

 

460

 

481

 

527

 

490

 

459

 

460

 

459

 

(1

)

 

(1

)

 

(31

)

(6

)%

Pretax operating earnings

 

$

176

 

$

170

 

$

128

 

$

159

 

$

172

 

$

176

 

$

172

 

$

(4

)

(2

)%

$

(4

)

(2

)%

$

13

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

27.7

%

26.1

%

19.5

%

24.5

%

27.3

%

27.7

%

27.3

%

(0.4

)%

 

 

(0.4

)%

 

 

2.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

2,800

 

$

2,552

 

$

1,938

 

$

1,982

 

$

1,987

 

$

2,800

 

$

1,987

 

$

(813

)

(29

)%

$

(813

)

(29

)%

$

5

 

 

Operating return on allocated capital (1)

 

18.4

%

19.6

%

18.3

%

19.3

%

20.7

%

18.4

%

20.7

%

2.3

%

 

 

2.3

%

 

 

1.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market impact on variable annuity guaranteed benefits (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk margin and nonperformance spread impact

 

$

(4

)

$

(16

)

$

26

 

$

7

 

$

17

 

$

(4

)

$

17

 

$

21

 

#

 

$

21

 

#

 

$

10

 

#

 

Other

 

(11

)

(38

)

(17

)

(41

)

(51

)

(11

)

(51

)

(40

)

#

 

(40

)

#

 

(10

)

(24

)%

Total VA guaranteed benefit impact excluded from operating earnings

 

$

(15

)

$

(54

)

$

9

 

$

(34

)

$

(34

)

$

(15

)

$

(34

)

$

(19

)

#

 

$

(19

)

#

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total annuity net flows

 

$

(815

)

$

(916

)

$

(740

)

$

(721

)

$

(950

)

$

(815

)

$

(950

)

$

(135

)

(17

)%

$

(135

)

(17

)%

$

(229

)

(32

)%

 


(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.

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

 

# Variance of greater than 100%.

 

22



 

Ameriprise Financial, Inc.

Annuities Segment

First Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

145

 

$

140

 

$

81

 

$

123

 

$

144

 

$

145

 

$

144

 

$

(1

)

(1

)%

$

(1

)

(1

)%

$

21

 

17

%

Allocated capital (1)

 

$

1,366

 

$

1,164

 

$

564

 

$

644

 

$

650

 

$

1,366

 

$

650

 

$

(716

)

(52

)%

$

(716

)

(52

)%

$

6

 

1

%

Operating return on allocated capital (2)

 

35.6

%

36.5

%

33.0

%

34.8

%

41.2

%

35.6

%

41.2

%

5.6

%

 

 

5.6

%

 

 

6.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Annuities (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

31

 

$

30

 

$

47

 

$

36

 

$

28

 

$

31

 

$

28

 

$

(3

)

(10

)%

$

(3

)

(10

)%

$

(8

)

(22

)%

Allocated capital

 

$

1,434

 

$

1,388

 

$

1,374

 

$

1,338

 

$

1,337

 

$

1,434

 

$

1,337

 

$

(97

)

(7

)%

$

(97

)

(7

)%

$

(1

)

 

Operating return on allocated capital (2)

 

5.4

%

5.3

%

6.6

%

7.7

%

7.6

%

5.4

%

7.6

%

2.2

%

 

 

2.2

%

 

 

(0.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

75,522

 

$

75,893

 

$

77,580

 

$

76,141

 

$

76,988

 

$

75,522

 

$

76,988

 

$

1,466

 

2

%

$

1,466

 

2

%

$

847

 

1

%

Deposits

 

1,215

 

1,248

 

1,204

 

1,200

 

1,182

 

1,215

 

1,182

 

(33

)

(3

)%

(33

)

(3

)%

(18

)

(2

)%

Withdrawals and terminations

 

(1,615

)

(1,704

)

(1,630

)

(1,606

)

(1,567

)

(1,615

)

(1,567

)

48

 

3

%

48

 

3

%

39

 

2

%

Net flows

 

(400

)

(456

)

(426

)

(406

)

(385

)

(400

)

(385

)

15

 

4

%

15

 

4

%

21

 

5

%

Investment performance and interest credited

 

771

 

2,143

 

(1,013

)

1,253

 

1,331

 

771

 

1,331

 

560

 

73

%

560

 

73

%

78

 

6

%

Total ending balance - contract accumulation values

 

$

75,893

 

$

77,580

 

$

76,141

 

$

76,988

 

$

77,934

 

$

75,893

 

$

77,934

 

$

2,041

 

3

%

$

2,041

 

3

%

$

946

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable annuities fixed sub-accounts

 

$

4,893

 

$

4,877

 

$

4,869

 

$

4,860

 

$

4,848

 

$

4,893

 

$

4,848

 

$

(45

)

(1

)%

$

(45

)

(1

)%

$

(12

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Annuities Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

13,252

 

$

12,944

 

$

12,581

 

$

12,360

 

$

12,137

 

$

13,252

 

$

12,137

 

$

(1,115

)

(8

)%

$

(1,115

)

(8

)%

$

(223

)

(2

)%

Deposits

 

49

 

53

 

38

 

37

 

36

 

49

 

36

 

(13

)

(27

)%

(13

)

(27

)%

(1

)

(3

)%

Withdrawals and terminations

 

(464

)

(513

)

(352

)

(352

)

(601

)

(464

)

(601

)

(137

)

(30

)%

(137

)

(30

)%

(249

)

(71

)%

Net flows

 

(415

)

(460

)

(314

)

(315

)

(565

)

(415

)

(565

)

(150

)

(36

)%

(150

)

(36

)%

(250

)

(79

)%

Policyholder interest credited

 

107

 

97

 

93

 

92

 

86

 

107

 

86

 

(21

)

(20

)%

(21

)

(20

)%

(6

)

(7

)%

Total ending balance - contract accumulation values

 

$

12,944

 

$

12,581

 

$

12,360

 

$

12,137

 

$

11,658

 

$

12,944

 

$

11,658

 

$

(1,286

)

(10

)%

$

(1,286

)

(10

)%

$

(479

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized interest

 

$

1

 

$

 

$

1

 

$

1

 

$

1

 

$

1

 

$

1

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payout Annuities Reserve Balance

 

$

2,112

 

$

2,111

 

$

2,110

 

$

2,103

 

$

2,088

 

$

2,112

 

$

2,088

 

$

(24

)

(1

)%

$

(24

)

(1

)%

$

(15

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Equivalent Spread - Fixed Annuities (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross rate of return on invested assets (5)

 

4.9

%

4.8

%

5.0

%

4.9

%

4.7

%

4.9

%

4.7

%

(0.2

)%

 

 

(0.2

)%

 

 

(0.2

)%

 

 

Crediting rate excluding capitalized interest

 

(3.3

)%

(3.0

)%

(3.0

)%

(3.0

)%

(3.0

)%

(3.3

)%

(3.0

)%

0.3

%

 

 

0.3

%

 

 

 

 

 

Tax equivalent margin spread

 

1.6

%

1.8

%

2.0

%

1.9

%

1.7

%

1.6

%

1.7

%

0.1

%

 

 

0.1

%

 

 

(0.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Variable Annuities DAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,690

 

$

1,685

 

$

1,692

 

$

1,655

 

$

1,663

 

$

1,690

 

$

1,663

 

$

(27

)

(2

)%

$

(27

)

(2

)%

$

8

 

 

Capitalization

 

41

 

44

 

42

 

42

 

39

 

41

 

39

 

(2

)

(5

)%

(2

)

(5

)%

(3

)

(7

)%

Amortization due to market impact on VA guaranteed benefits

 

 

10

 

(7

)

6

 

4

 

 

4

 

4

 

 

4

 

 

(2

)

(33

)%

Amortization per income statement

 

(43

)

(41

)

(78

)

(43

)

(33

)

(43

)

(33

)

10

 

23

%

10

 

23

%

10

 

23

%

Other

 

(3

)

(6

)

6

 

3

 

(3

)

(3

)

(3

)

 

 

 

 

(6

)

#

 

Total ending balance

 

$

1,685

 

$

1,692

 

$

1,655

 

$

1,663

 

$

1,670

 

$

1,685

 

$

1,670

 

$

(15

)

(1

)%

$

(15

)

(1

)%

$

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Annuities DAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

88

 

$

71

 

$

58

 

$

68

 

$

67

 

$

88

 

$

67

 

$

(21

)

(24

)%

$

(21

)

(24

)%

$

(1

)

(1

)%

Capitalization

 

1

 

 

1

 

1

 

1

 

1

 

1

 

 

 

 

 

 

 

Amortization per income statement

 

(11

)

(10

)

 

(9

)

(10

)

(11

)

(10

)

1

 

9

%

1

 

9

%

(1

)

(11

)%

Other

 

(7

)

(3

)

9

 

7

 

1

 

(7

)

1

 

8

 

#

 

8

 

#

 

(6

)

(86

)%

Total ending balance

 

$

71

 

$

58

 

$

68

 

$

67

 

$

59

 

$

71

 

$

59

 

$

(12

)

(17

)%

$

(12

)

(17

)%

$

(8

)

(12

)%

 


(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.

(3)

Includes payout annuities.

(4)

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

(5)

In the 1st quarter of 2014 through the 1st quarter of 2015, 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 4.8%, 4.7%, 4.8%, 4.8% and 4.6% respectively.

 

 

#

Variance of greater than 100%.

 

23



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2015

 

Protection Segment

 

24



 

Ameriprise Financial, Inc.

Protection Segment

First Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

(in millions unless otherwise noted, unaudited)

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

15

 

$

15

 

$

14

 

$

15

 

$

15

 

$

15

 

$

15

 

$

 

 

$

 

 

$

 

 

Distribution fees

 

23

 

22

 

24

 

23

 

23

 

23

 

23

 

 

 

 

 

 

 

Net investment income

 

108

 

113

 

111

 

115

 

114

 

108

 

114

 

6

 

6

%

6

 

6

%

(1

)

(1

)%

Premiums

 

308

 

317

 

329

 

338

 

335

 

308

 

335

 

27

 

9

%

27

 

9

%

(3

)

(1

)%

Other revenues

 

101

 

112

 

75

 

109

 

103

 

101

 

103

 

2

 

2

%

2

 

2

%

(6

)

(6

)%

Total revenues

 

555

 

579

 

553

 

600

 

590

 

555

 

590

 

35

 

6

%

35

 

6

%

(10

)

(2

)%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

555

 

579

 

553

 

600

 

590

 

555

 

590

 

35

 

6

%

35

 

6

%

(10

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

14

 

16

 

14

 

17

 

13

 

14

 

13

 

(1

)

(7

)%

(1

)

(7

)%

(4

)

(24

)%

Interest credited to fixed accounts

 

38

 

37

 

39

 

39

 

40

 

38

 

40

 

2

 

5

%

2

 

5

%

1

 

3

%

Benefits, claims, losses and settlement expenses

 

349

 

329

 

338

 

400

 

380

 

349

 

380

 

31

 

9

%

31

 

9

%

(20

)

(5

)%

Amortization of deferred acquisition costs

 

28

 

36

 

26

 

45

 

36

 

28

 

36

 

8

 

29

%

8

 

29

%

(9

)

(20

)%

Interest and debt expense

 

7

 

7

 

6

 

8

 

8

 

7

 

8

 

1

 

14

%

1

 

14

%

 

 

General and administrative expense

 

60

 

63

 

64

 

61

 

62

 

60

 

62

 

2

 

3

%

2

 

3

%

1

 

2

%

Operating expenses

 

496

 

488

 

487

 

570

 

539

 

496

 

539

 

43

 

9

%

43

 

9

%

(31

)

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

59

 

$

91

 

$

66

 

$

30

 

$

51

 

$

59

 

$

51

 

$

(8

)

(14

)%

$

(8

)

(14

)%

$

21

 

70

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

10.6

%

15.7

%

11.9

%

5.0

%

8.6

%

10.6

%

8.6

%

(2.0

)%

 

 

(2.0

)%

 

 

3.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,839

 

$

1,879

 

$

1,897

 

$

1,962

 

$

1,975

 

$

1,839

 

$

1,975

 

$

136

 

7

%

$

136

 

7

%

$

13

 

1

%

Operating return on allocated capital (1)

 

11.7

%

11.5

%

11.4

%

9.6

%

9.1

%

11.7

%

9.1

%

(2.6

)%

 

 

(2.6

)%

 

 

(0.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market impact on indexed universal life benefits (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk margin and nonperformance spread impact

 

$

2

 

$

4

 

$

6

 

$

1

 

$

 

$

2

 

$

 

$

(2

)

#

 

$

(2

)

#

 

$

(1

)

#

 

Other

 

(1

)

(4

)

2

 

(16

)

(6

)

(1

)

(6

)

(5

)

#

 

(5

)

#

 

10

 

63

%

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

 

$

1

 

$

 

$

8

 

$

(15

)

$

(6

)

$

1

 

$

(6

)

$

(7

)

#

 

$

(7

)

#

 

$

 9

 

60

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long Term Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

8

 

$

2

 

$

(5

)

$

 

$

(31

)

$

8

 

$

(31

)

$

(39

)

#

 

$

(39

)

#

 

$

(31

)

 

Allocated capital

 

$

520

 

$

517

 

$

522

 

$

536

 

$

556

 

$

520

 

$

556

 

$

36

 

7

%

$

36

 

7

%

$

20

 

4

%

Operating return on allocated capital (1)

 

1.2

%

1.3

%

0.9

%

0.7

%

(4.7

)%

1.2

%

(4.7

)%

(5.9

)%

 

 

(5.9

)%

 

 

(5.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Protection excluding Long Term Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

51

 

$

89

 

$

71

 

$

30

 

$

82

 

$

51

 

$

82

 

$

31

 

61

%

$

31

 

61

%

$

52

 

#

 

Allocated capital

 

$

1,319

 

$

1,362

 

$

1,375

 

$

1,426

 

$

1,419

 

$

1,319

 

$

1,419

 

$

100

 

8

%

$

100

 

8

%

$

(7

)

 

Operating return on allocated capital (1)

 

15.9

%

15.5

%

15.5

%

13.1

%

14.4

%

15.9

%

14.4

%

(1.5

)%

 

 

(1.5

)%

 

 

1.3

%

 

 

 


(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.

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

 

# Variance of greater than 100%.

 

25



 

Ameriprise Financial, Inc.

Protection Segment

First Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Cash Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL (1)

 

$

78

 

$

78

 

$

85

 

$

85

 

$

66

 

$

78

 

$

66

 

$

(12

)

(15

)%

$

(12

)

(15

)%

$

(19

)

(22

)%

Term and whole life

 

3

 

2

 

2

 

3

 

2

 

3

 

2

 

(1

)

(33

)%

(1

)

(33

)%

(1

)

(33

)%

Disability insurance

 

1

 

1

 

2

 

1

 

1

 

1

 

1

 

 

 

 

 

 

 

Auto and home

 

239

 

253

 

274

 

251

 

262

 

239

 

262

 

23

 

10

%

23

 

10

%

11

 

4

%

Total cash sales

 

$

321

 

$

334

 

$

363

 

$

340

 

$

331

 

$

321

 

$

331

 

$

10

 

3

%

$

10

 

3

%

$

(9

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL Policyholder Account Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

10,906

 

$

10,984

 

$

11,234

 

$

11,124

 

$

11,283

 

$

10,906

 

$

11,283

 

$

377

 

3

%

$

377

 

3

%

$

159

 

1

%

Premiums and deposits

 

249

 

260

 

258

 

266

 

246

 

249

 

246

 

(3

)

(1

)%

(3

)

(1

)%

(20

)

(8

)%

Investment performance and interest

 

117

 

279

 

(70

)

190

 

186

 

117

 

186

 

69

 

59

%

69

 

59

%

(4

)

(2

)%

Withdrawals and surrenders

 

(287

)

(291

)

(297

)

(296

)

(294

)

(287

)

(294

)

(7

)

(2

)%

(7

)

(2

)%

2

 

1

%

Other

 

(1

)

2

 

(1

)

(1

)

 

(1

)

 

1

 

#

 

1

 

#

 

1

 

#

 

Total ending balance

 

$

10,984

 

$

11,234

 

$

11,124

 

$

11,283

 

$

11,421

 

$

10,984

 

$

11,421

 

$

437

 

4

%

$

437

 

4

%

$

138

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums by Product

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term and whole life

 

$

12

 

$

12

 

$

12

 

$

12

 

$

11

 

$

12

 

$

11

 

$

(1

)

(8

)%

$

(1

)

(8

)%

$

(1

)

(8

)%

Disability insurance

 

38

 

39

 

38

 

38

 

37

 

38

 

37

 

(1

)

(3

)%

(1

)

(3

)%

(1

)

(3

)%

Long term care

 

28

 

28

 

28

 

30

 

27

 

28

 

27

 

(1

)

(4

)%

(1

)

(4

)%

(3

)

(10

)%

Auto and home

 

224

 

233

 

245

 

253

 

254

 

224

 

254

 

30

 

13

%

30

 

13

%

1

 

 

Intercompany premiums

 

6

 

5

 

6

 

5

 

6

 

6

 

6

 

 

 

 

 

1

 

20

%

Total premiums by product

 

$

308

 

$

317

 

$

329

 

$

338

 

$

335

 

$

308

 

$

335

 

$

27

 

9

%

$

27

 

9

%

$

(3

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto and Home Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy count (thousands)

 

861

 

889

 

912

 

929

 

943

 

861

 

943

 

82

 

10

%

82

 

10

%

14

 

2

%

Loss ratio

 

100.5

%

89.7

%

85.6

%

106.2

%

90.1

%

100.5

%

90.1

%

(10.4

)%

 

 

(10.4

)%

 

 

(16.1

)%

 

 

Expense ratio

 

15.4

%

15.5

%

14.7

%

15.6

%

15.5

%

15.4

%

15.5

%

0.1

%

 

 

0.1

%

 

 

(0.1

)%

 

 

Combined ratio

 

115.9

%

105.2

%

100.3

%

121.8

%

105.6

%

115.9

%

105.6

%

(10.3

)%

 

 

(10.3

)%

 

 

(16.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DAC Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life and Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

859

 

$

848

 

$

835

 

$

854

 

$

851

 

$

859

 

$

851

 

$

(8

)

(1

)%

$

(8

)

(1

)%

$

(3

)

 

Capitalization

 

20

 

22

 

24

 

22

 

20

 

20

 

20

 

 

 

 

 

(2

)

(9

)%

Amortization due to market impact on indexed universal life benefits

 

(1

)

3

 

(1

)

8

 

3

 

(1

)

3

 

4

 

#

 

4

 

#

 

(5

)

(63

)%

Amortization per income statement

 

(15

)

(20

)

(11

)

(29

)

(20

)

(15

)

(20

)

(5

)

(33

)%

(5

)

(33

)%

9

 

31

%

Other

 

(15

)

(18

)

7

 

(4

)

(9

)

(15

)

(9

)

6

 

40

%

6

 

40

%

(5

)

#

 

Total ending balance

 

$

848

 

$

835

 

$

854

 

$

851

 

$

845

 

$

848

 

$

845

 

$

(3

)

 

$

(3

)

 

$

(6

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life Insurance in Force

 

$

194,293

 

$

194,760

 

$

195,155

 

$

195,510

 

$

195,694

 

$

194,293

 

$

195,694

 

$

1,401

 

1

%

$

1,401

 

1

%

$

184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Amount at Risk

 

$

40,816

 

$

40,452

 

$

40,600

 

$

40,552

 

$

40,331

 

$

40,816

 

$

40,331

 

$

(485

)

(1

)%

$

(485

)

(1

)%

$

(221

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Policyholder Reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL

 

$

10,139

 

$

10,400

 

$

10,295

 

$

10,476

 

$

10,631

 

$

10,139

 

$

10,631

 

$

492

 

5

%

$

492

 

5

%

$

155

 

1

%

Term and whole life

 

221

 

218

 

218

 

216

 

215

 

221

 

215

 

(6

)

(3

)%

(6

)

(3

)%

(1

)

 

Disability insurance

 

539

 

536

 

537

 

538

 

532

 

539

 

532

 

(7

)

(1

)%

(7

)

(1

)%

(6

)

(1

)%

Long term care and other

 

2,696

 

2,707

 

2,723

 

2,738

 

2,778

 

2,696

 

2,778

 

82

 

3

%

82

 

3

%

40

 

1

%

Auto and home loss and LAE reserves

 

439

 

441

 

428

 

473

 

493

 

439

 

493

 

54

 

12

%

54

 

12

%

20

 

4

%

Total net policyholder reserves

 

$

14,034

 

$

14,302

 

$

14,201

 

$

14,441

 

$

14,649

 

$

14,034

 

$

14,649

 

$

615

 

4

%

$

615

 

4

%

$

208

 

1

%

 


(1)        Includes lump sum deposits.

# Variance of greater than 100%.

26



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2015

 

Corporate & Other Segment

 

27



 

Ameriprise Financial, Inc.

Corporate & Other Segment

First Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

Distribution fees

 

1

 

 

 

 

 

1

 

 

(1

)

#

 

(1

)

#

 

 

 

Net investment income

 

4

 

(5

)

(3

)

(2

)

(7

)

4

 

(7

)

(11

)

#

 

(11

)

#

 

(5

)

#

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

1

 

3

 

2

 

3

 

1

 

1

 

1

 

 

 

 

 

(2

)

(67

)%

Total revenues

 

6

 

(2

)

(1

)

1

 

(6

)

6

 

(6

)

(12

)

#

 

(12

)

#

 

(7

)

#

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

6

 

(2

)

(1

)

1

 

(6

)

6

 

(6

)

(12

)

#

 

(12

)

#

 

(7

)

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

4

 

9

 

3

 

5

 

5

 

4

 

5

 

1

 

25

%

1

 

25

%

 

 

General and administrative expense

 

57

 

64

 

48

 

43

 

51

 

57

 

51

 

(6

)

(11

)%

(6

)

(11

)%

8

 

19

%

Operating expenses

 

61

 

73

 

52

 

48

 

56

 

61

 

56

 

(5

)

(8

)%

(5

)

(8

)%

8

 

17

%

Pretax operating loss

 

$

(55

)

$

(75

)

$

(53

)

$

(47

)

$

(62

)

$

(55

)

$

(62

)

$

(7

)

(13

)%

$

(7

)

(13

)%

$

(15

)

(32

)%

 


# Variance of greater than 100%.

 

28



 

Ameriprise Financial, Inc.

Eliminations (1)

First Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

(33

)

$

(34

)

$

(34

)

$

(34

)

$

(34

)

$

(33

)

$

(34

)

$

(1

)

(3

)%

$

(1

)

(3

)%

$

 

 

Distribution fees

 

(304

)

(317

)

(319

)

(325

)

(314

)

(304

)

(314

)

(10

)

(3

)%

(10

)

(3

)%

11

 

3

%

Net investment income

 

 

 

 

(1

)

 

 

 

 

 

 

 

1

 

#

 

Premiums

 

(4

)

(4

)

(4

)

(4

)

(4

)

(4

)

(4

)

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

(341

)

(355

)

(357

)

(364

)

(352

)

(341

)

(352

)

(11

)

(3

)%

(11

)

(3

)%

12

 

3

%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

(341

)

(355

)

(357

)

(364

)

(352

)

(341

)

(352

)

(11

)

(3

)%

(11

)

(3

)%

12

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

(326

)

(340

)

(342

)

(348

)

(337

)

(326

)

(337

)

(11

)

(3

)%

(11

)

(3

)%

11

 

3

%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

(15

)

(15

)

(15

)

(16

)

(15

)

(15

)

(15

)

 

 

 

 

1

 

6

%

Operating expenses

 

(341

)

(355

)

(357

)

(364

)

(352

)

(341

)

(352

)

(11

)

(3

)%

(11

)

(3

)%

12

 

3

%

Pretax operating earnings

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

 


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

# Variance of greater than 100%.

 

29



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2015

 

Balance Sheet and Ratings Information

 

30



 

Ameriprise Financial, Inc.

Consolidated Balance Sheets

First Quarter 2015

 

(in millions, unaudited)

 

March 31, 2014

 

June 30, 2014

 

September 30, 2014

 

December 31, 2014

 

March 31, 2015

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,403

 

$

2,141

 

$

2,876

 

$

2,638

 

$

2,809

 

Cash of consolidated investment entities

 

496

 

718

 

279

 

390

 

338

 

Investments

 

35,906

 

35,958

 

35,899

 

35,582

 

35,726

 

Investments of consolidated investment entities

 

5,397

 

5,626

 

5,661

 

6,148

 

6,090

 

Separate account assets

 

81,872

 

84,027

 

82,420

 

83,256

 

84,243

 

Receivables

 

4,639

 

4,782

 

4,827

 

4,887

 

5,063

 

Receivables of consolidated investment entities

 

75

 

127

 

68

 

140

 

77

 

Deferred acquisition costs

 

2,630

 

2,612

 

2,605

 

2,608

 

2,602

 

Restricted and segregated cash and investments

 

2,391

 

2,344

 

2,382

 

2,614

 

2,714

 

Other assets

 

8,160

 

8,435

 

8,158

 

8,611

 

9,896

 

Other assets of consolidated investment entities

 

1,995

 

2,390

 

2,018

 

1,936

 

1,890

 

Total Assets

 

$

145,964

 

$

149,160

 

$

147,193

 

$

148,810

 

$

151,448

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Policyholder account balances, future policy benefits and claims

 

$

29,625

 

$

29,607

 

$

29,810

 

$

30,350

 

$

30,482

 

Separate account liabilities

 

81,872

 

84,027

 

82,420

 

83,256

 

84,243

 

Customer deposits

 

7,211

 

7,285

 

7,513

 

7,664

 

7,878

 

Short-term borrowings

 

300

 

200

 

200

 

200

 

200

 

Long-term debt

 

2,719

 

2,523

 

3,059

 

3,062

 

3,066

 

Debt of consolidated investment entities

 

6,147

 

6,672

 

6,394

 

6,867

 

6,779

 

Accounts payable and accrued expenses

 

1,187

 

1,274

 

1,411

 

1,482

 

1,275

 

Accounts payable and accrued expenses of consolidated investment entities

 

41

 

47

 

50

 

41

 

46

 

Other liabilities

 

7,143

 

7,356

 

6,882

 

6,357

 

8,068

 

Other liabilities of consolidated investment entities

 

274

 

492

 

114

 

226

 

152

 

Total Liabilities

 

136,519

 

139,483

 

137,853

 

139,505

 

142,189

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial

 

 

 

 

 

 

 

 

 

 

 

Common shares ($.01 par)

 

3

 

3

 

3

 

3

 

3

 

Additional paid-in capital

 

7,046

 

7,144

 

7,232

 

7,345

 

7,423

 

Retained earnings

 

7,582

 

7,843

 

8,152

 

8,469

 

8,752

 

Appropriated retained earnings of consolidated investment entities

 

356

 

320

 

308

 

234

 

279

 

Treasury stock

 

(7,389

)

(7,802

)

(8,181

)

(8,589

)

(8,966

)

Accumulated other comprehensive income, net of tax

 

746

 

920

 

746

 

662

 

704

 

Total Ameriprise Financial Shareholders’ Equity

 

8,344

 

8,428

 

8,260

 

8,124

 

8,195

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests

 

1,101

 

1,249

 

1,080

 

1,181

 

1,064

 

Total Equity

 

9,445

 

9,677

 

9,340

 

9,305

 

9,259

 

Total Liabilities and Equity

 

$

145,964

 

$

149,160

 

$

147,193

 

$

148,810

 

$

151,448

 

 

31



 

Ameriprise Financial, Inc.

Capital and Ratings Information

First Quarter 2015

 

(in millions unless otherwise noted, unaudited)

 

March 31, 2014

 

June 30, 2014

 

September 30, 2014

 

December 31, 2014

 

March 31, 2015

 

Long-term Debt Summary

 

 

 

 

 

 

 

 

 

 

 

Senior notes

 

$

2,425

 

$

2,229

 

$

2,765

 

$

2,768

 

$

2,772

 

Junior subordinated notes

 

294

 

294

 

294

 

294

 

294

 

Total Ameriprise Financial long-term debt

 

2,719

 

2,523

 

3,059

 

3,062

 

3,066

 

Non-recourse debt of consolidated investment entities

 

6,147

 

6,672

 

6,394

 

6,867

 

6,779

 

Total long-term debt

 

$

8,866

 

$

9,195

 

$

9,453

 

$

9,929

 

$

9,845

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt

 

$

2,719

 

$

2,523

 

$

3,059

 

$

3,062

 

$

3,066

 

Fair value of hedges and unamortized discount

 

(75

)

(79

)

(65

)

(68

)

(72

)

Total Ameriprise Financial long-term debt excluding fair value of hedges and unamortized discount (1)

 

$

2,644

 

$

2,444

 

$

2,994

 

$

2,994

 

$

2,994

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity (2)

 

$

9,445

 

$

9,677

 

$

9,340

 

$

9,305

 

$

9,259

 

Noncontrolling interests

 

(1,101

)

(1,249

)

(1,080

)

(1,181

)

(1,064

)

Total Ameriprise Financial shareholders’ equity

 

8,344

 

8,428

 

8,260

 

8,124

 

8,195

 

Equity of consolidated investment entities

 

(340

)

(308

)

(296

)

(222

)

(266

)

Total Ameriprise Financial shareholders’ equity excluding CIEs (1)

 

$

8,004

 

$

8,120

 

$

7,964

 

$

7,902

 

$

7,929

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial capital

 

$

11,063

 

$

10,951

 

$

11,319

 

$

11,186

 

$

11,261

 

Total Ameriprise Financial capital excluding fair value of hedges, unamortized discount and equity of CIEs (1)

 

$

10,648

 

$

10,564

 

$

10,958

 

$

10,896

 

$

10,923

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to capital

 

 

 

 

 

 

 

 

 

 

 

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

 

24.6

%

23.0

%

27.0

%

27.4

%

27.2

%

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

 

24.8

%

23.1

%

27.3

%

27.5

%

27.4

%

 

Ratings (as of March 31, 2015 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 34. Non-GAAP financial measure reconciliations can be found on page 45.

(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.

 

32



 

Ameriprise Financial, Inc.

Ameriprise Financial Investments (1)

First Quarter 2015

 

(in millions unless otherwise noted, unaudited)

 

March 31, 2014

 

June 30, 2014

 

September 30, 2014

 

December 31, 2014

 

March 31, 2015

 

Cash and cash equivalents

 

$

2,403

 

$

2,141

 

$

2,876

 

$

2,638

 

$

2,809

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments - Ending Balances

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale Securities

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

17,464

 

17,411

 

17,322

 

17,165

 

17,218

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage backed securities

 

6,090

 

6,158

 

6,232

 

6,207

 

6,270

 

Commercial mortgage backed securities

 

2,781

 

2,768

 

2,637

 

2,630

 

2,694

 

Asset backed securities

 

1,522

 

1,506

 

1,488

 

1,470

 

1,405

 

Total mortgage and other asset backed securities

 

10,393

 

10,432

 

10,357

 

10,307

 

10,369

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal obligations

 

2,298

 

2,317

 

2,257

 

2,239

 

2,243

 

US government and agencies obligations

 

52

 

47

 

47

 

47

 

56

 

Foreign government bonds and obligations

 

252

 

258

 

253

 

251

 

245

 

Common and preferred stocks

 

19

 

21

 

20

 

18

 

19

 

Total other

 

2,621

 

2,643

 

2,577

 

2,555

 

2,563

 

Total available-for-sale securities

 

30,478

 

30,486

 

30,256

 

30,027

 

30,150

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage loans

 

2,695

 

2,705

 

2,714

 

2,729

 

2,683

 

Allowance for loan losses

 

(25

)

(25

)

(25

)

(25

)

(23

)

Commercial mortgage loans, net

 

2,670

 

2,680

 

2,689

 

2,704

 

2,660

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

821

 

797

 

771

 

739

 

710

 

Allowance for loan losses

 

(4

)

(3

)

(3

)

(3

)

(2

)

Residential mortgage loans, net

 

817

 

794

 

768

 

736

 

708

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy loans

 

780

 

792

 

805

 

806

 

813

 

Other investments

 

1,161

 

1,206

 

1,381

 

1,309

 

1,395

 

Total investments

 

35,906

 

35,958

 

35,899

 

35,582

 

35,726

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash, cash equivalents and investments

 

$

38,309

 

$

38,099

 

$

38,775

 

$

38,220

 

$

38,535

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gain Available-for-Sale Securities

 

$

1,836

 

$

2,204

 

$

1,985

 

$

1,961

 

$

2,178

 

 

 

 

 

 

 

 

 

 

 

 

 

AFS Fixed Maturity Asset Quality - %

 

 

 

 

 

 

 

 

 

 

 

AAA

 

25

%

25

%

26

%

26

%

26

%

AA

 

6

%

6

%

6

%

6

%

6

%

AFS securities AA and above

 

31

%

31

%

32

%

32

%

32

%

A

 

22

%

22

%

22

%

22

%

21

%

BBB

 

41

%

41

%

40

%

40

%

41

%

Below investment grade

 

6

%

6

%

6

%

6

%

6

%

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

 

6

%

6

%

6

%

6

%

6

%

 


(1)

Investments excluding investments of CIEs.

 

33



 

Ameriprise Financial, Inc.

 

Non-GAAP Financial Information

 

Ameriprise Financial, Inc. (the Company) prepares its financial statements in accordance with accounting principles generally accepted in the United States (U.S. GAAP).  This report includes information on both a U.S. GAAP and non-GAAP basis.  Management believes that the presentation of these non-GAAP financial measures best reflect the underlying performance of the Company and facilitate a more meaningful trend analysis.  Management uses certain of these non-GAAP measures to evaluate our financial performance on a basis comparable to that used by some securities analysts and investors. Also, certain of these non-GAAP measures are taken into consideration, to varying degrees, for purposes of business planning and analysis and certain compensation-related matters.  See the reconciliations on pages 6, 15, 44 and 45.

 

These non-GAAP measures include:

 

· Adjusted net pretax operating margin;

· Adjusted operating earnings;

· Adjusted operating revenues;

· Ameriprise Financial shareholders’ equity excluding AOCI;

· Ameriprise Financial shareholders’ equity excluding CIEs;

· Ameriprise Financial shareholders’ equity excluding CIEs and AOCI;

· Basic operating earnings per share;

· Effective tax rate excluding noncontrolling interests;

· Operating earnings;

· Operating earnings per diluted share;

· Operating effective tax rate;

· Operating return on equity excluding AOCI;

· Operating total net revenues;

· Pretax operating earnings;

· Pretax operating margin;

· Return on equity excluding AOCI;

· Total Ameriprise Financial capital excluding fair value of hedges, unamortized discount and equity of CIEs;

· Total Ameriprise Financial long-term debt excluding fair value of hedges and unamortized discount;

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

 

Reclassification

 

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

 

34



 

Ameriprise Financial, Inc.

Glossary of Selected Terminology - Segments

 

Advice & Wealth Management - This segment provides financial planning and advice, as well as full service brokerage 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 annuity products are primarily earned as net investment income on assets supporting fixed account balances, with profitability significantly impacted by the spread between net investment income earned and interest credited on the fixed account balances. We also earn net investment income on owned assets supporting reserves for immediate annuities and for certain guaranteed benefits offered with variable annuities and on capital supporting the business. Intersegment revenues for this segment reflect fees paid by our Asset Management segment for marketing support and other services provided in connection with the availability of 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.

 

35



 

Ameriprise Financial, Inc.

Glossary of Selected Terminology

 

Adjusted Net Pretax Operating Margin - An internal measure designed to calculate operating margins similar to how asset management companies define operating margins. A ratio representing adjusted operating earnings as a percentage of adjusted operating revenues for the asset management segment.

 

Adjusted Operating Earnings - Asset management segment pretax operating earnings less operating net investment income plus amortization of intangibles.

 

Adjusted Operating Revenues - Asset management segment operating total net revenues less pass through distribution revenue and subadvisory and other pass through revenues.

 

Affiliated General Account Assets - Balance sheet assets from various affiliates managed and reported by Columbia.

 

Allocated Capital - The internal allocation of Total Ameriprise Financial Capital, excluding accumulated other comprehensive income (loss), CIEs, and fair value of hedges 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 and Ford Motor Credit Company. We sell these products through our auto and home subsidiary, IDS Property Casualty Insurance Company (doing business as Ameriprise Auto & Home Insurance).

 

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

 

Consolidated Investment Entities (“CIEs”) - CIEs include 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 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.

 

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 - Mutual or VP/VIT fund inflows less outflows.

 

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

 

Operating Expenses - Total expenses less integration/restructuring charges, market impact on variable annuity guaranteed benefits, market impact on indexed universal life benefits and expense from consolidated investment entities.

 

Operating Net Investment Income - Net investment income minus net realized gains (losses) and net investment income from consolidated investment entities.

 

Operating Return on Allocated 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 less realized gains plus realized losses plus/less indexed universal life market impact on reinsurance and unearned revenue less revenue from consolidated investment entities and integration/restructuring.

 

Pretax Operating Earnings - Income from continuing operations before income tax provision plus or minus net realized gains (losses) plus integration/restructuring charges plus market impact on variable annuity guaranteed benefits plus market impact on indexed universal life benefits minus pretax income (loss) from consolidated investment entities.

 

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

 

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

 

Risk Margin and Nonperformance Spread Impact - The portion of the market impact on variable annuity guaranteed 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 Ameriprise Financial shareholders’ equity plus total Ameriprise Financial long-term debt. Total Ameriprise Financial capital is also presented excluding fair value of hedges, unamortized discount and equity of CIEs.

 

Total Ameriprise Financial Long-term Debt to Total Ameriprise Financial Capital Ratio - A ratio comprised of total Ameriprise Financial long-term debt divided by Ameriprise Financial capital. We also present total Ameriprise Financial long-term debt to total Ameriprise Financial capital ratios excluding fair value of hedges, unamortized discount and equity of consolidated investment entities. 

 

Wrap Accounts - Wrap accounts enable our clients to purchase other securities such as mutual funds in connection with 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

 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2015

 

Disclosed Items

 

37



 

Ameriprise Financial, Inc.

Disclosed Items

1 Qtr 2015

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth
Management

 

Annuities

 

Protection

 

Corporate and
Eliminations

 

 

 

 

 

 

 

Market Impact on

 

 

 

Market Impact on

 

 

 

 

 

Securities

 

Securities

 

VA Guaranteed

 

Securities

 

Indexed Universal

 

 

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Gains/(Losses) (1)

 

Life Benefits (3)

 

CIEs (4)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

(14

)

Distribution fees

 

 

 

 

 

 

 

Net investment income

 

(1

)

7

 

 

4

 

 

105

 

Premiums

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

(4

)

58

 

Total revenues

 

(1

)

7

 

 

4

 

(4

)

149

 

Banking and deposit interest expense

 

 

 

 

 

 

 

Total net revenues

 

(1

)

7

 

 

4

 

(4

)

149

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

5

 

 

Benefits, claims, losses and settlement expenses

 

 

 

38

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

(4

)

 

(3

)

 

Interest and debt expense

 

 

 

 

 

 

53

 

General and administrative expense

 

 

 

 

 

 

10

 

Total expenses

 

 

 

34

 

 

2

 

63

 

Pretax segment income (loss)

 

(1

)

7

 

(34

)

4

 

(6

)

86

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

 

 

 

 

86

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

(1

)

$

7

 

$

(34

)

$

4

 

$

(6

)

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

Protection

 

 

 

Market

 

 

 

Market

 

 

 

Disability Insurance

 

Auto & Home

 

 

 

Impacts

 

Variable Annuity

 

Impacts

 

Long Term Care

 

Discount Rate

 

Weather-Related

 

(in millions, unaudited)

 

to DAC/DSIC (5)

 

Product Changes (6)

 

to DAC/DSIC (5)

 

Reserves (7)

 

Change (8)

 

Losses (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

)

(3

)

 

32

 

(7

)

12

 

Amortization of deferred acquisition costs

 

(8

)

1

 

(1

)

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

General and administrative expense

 

 

 

 

 

 

 

Operating expenses

 

(10

)

(2

)

(1

)

32

 

(7

)

12

 

Pretax operating earnings

 

$

10

 

$

2

 

$

1

 

$

(32

)

$

7

 

$

(12

)

 


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

(2)             Variable annuity guaranteed benefit impacts include:

$39 million net expense related to hedged variable annuity benefits

$5 million decrease in DAC and DSIC amortization resulting from hedged benefits

(3)             Indexed universal life benefit impacts include:

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

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

$4 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)             Decrease in DAC and DSIC amortization from higher than projected separate account growth

(6)             Benefit related to the addition of Portfolio Stabilizer (managed volatility) fund options for in-force variable annuities with living benefit guarantees

(7)             Reserve increase related to our closed block of long term care insurance

(8)             Favorable impact from a change in the discount rate for disability insurance products

(9)             Auto and home weather-related losses, includes $4 million related to 2014 catastrophe losses

 

38



 

Ameriprise Financial, Inc.

Disclosed Items

4 Qtr 2014

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth
Management

 

Annuities

 

Protection

 

Corporate and
Eliminations

 

 

 

 

 

 

 

Market Impact on

 

 

 

Market Impact on

 

 

 

 

 

Securities

 

Securities

 

VA Guaranteed

 

Securities

 

Indexed Universal

 

 

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Gains/(Losses) (1)

 

Life Benefits (3)

 

CIEs (4)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

(16

)

Distribution fees

 

 

 

 

 

 

 

Net investment income

 

1

 

16

 

 

10

 

 

(1

)

Premiums

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

(11

)

125

 

Total revenues

 

1

 

16

 

 

10

 

(11

)

108

 

Banking and deposit interest expense

 

 

 

 

 

 

 

Total net revenues

 

1

 

16

 

 

10

 

(11

)

108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

12

 

 

Benefits, claims, losses and settlement expenses

 

 

 

40

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

(6

)

 

(8

)

 

Interest and debt expense

 

 

 

 

 

 

60

 

General and administrative expense

 

 

 

 

 

 

20

 

Total expenses

 

 

 

34

 

 

4

 

80

 

Pretax segment income (loss)

 

1

 

16

 

(34

)

10

 

(15

)

28

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

 

 

 

 

28

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

1

 

$

16

 

$

(34

)

$

10

 

$

(15

)

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

Protection

 

 

 

 

 

Market

 

 

 

Market

 

 

 

 

 

 

 

 

 

Impacts

 

Variable Annuity

 

Impacts

 

Actuarial Model

 

Auto & Home

 

 

 

(in millions, unaudited)

 

to DAC/DSIC (5)

 

Product Changes (6)

 

to DAC/DSIC (5)

 

Correction (7)

 

Reserves (8)

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

Total revenues

 

 

 

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

Operating total net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

(1

)

(2

)

 

 

60

 

 

 

Amortization of deferred acquisition costs

 

(6

)

 

(1

)

7

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

General and administrative expense

 

 

 

 

 

 

 

 

Operating expenses

 

(7

)

(2

)

(1

)

7

 

60

 

 

 

Pretax operating earnings

 

$

7

 

$

2

 

$

1

 

$

(7

)

$

(60

)

 

 

 


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

(2)             Variable annuity guaranteed benefit impacts include:

$42 million net expense related to hedged variable annuity benefits

$8 million decrease in DAC and DSIC amortization resulting from hedged benefits

(3)             Indexed universal life benefit impacts include:

$12 million net expense related to hedged indexed universal life benefits

$8 million decrease in DAC amortization resulting from hedged indexed universal life benefits

$11 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)             Decrease in DAC and DSIC amortization from higher than projected separate account growth

(6)             Benefit related to the addition of Portfolio Stabilizer (managed volatility) fund options for in-force variable annuities with living benefit guarantees

(7)             Actuarial model correction in life and health

(8)             Increase in auto reserves

 

39



 

Ameriprise Financial, Inc.

Disclosed Items

3 Qtr 2014

 

Excluded from Operating Earnings

 

 

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

Market Impact on

 

 

 

Market Impact on

 

 

 

 

 

 

 

Securities

 

VA Guaranteed

 

Securities

 

Indexed Universal

 

Securities

 

 

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Gains/(Losses) (1)

 

Life Benefits (3)

 

Gains/(Losses) (1)

 

CIEs (4)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

(15

)

Distribution fees

 

 

 

 

 

 

 

Net investment income

 

7

 

 

1

 

 

(4

)

41

 

Premiums

 

 

 

 

 

 

 

Other revenues

 

 

 

 

2

 

 

180

 

Total revenues

 

7

 

 

1

 

2

 

(4

)

206

 

Banking and deposit interest expense

 

 

 

 

 

 

 

Total net revenues

 

7

 

 

1

 

2

 

(4

)

206

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

(7

)

 

 

Benefits, claims, losses and settlement expenses

 

 

(16

)

 

 

 

 

Amortization of deferred acquisition costs

 

 

7

 

 

1

 

 

 

Interest and debt expense

 

 

 

 

 

 

54

 

General and administrative expense

 

 

 

 

 

 

7

 

Total expenses

 

 

(9

)

 

(6

)

 

61

 

Pretax segment income (loss)

 

7

 

9

 

1

 

8

 

(4

)

145

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

 

 

 

 

145

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

7

 

$

9

 

$

1

 

$

8

 

$

(4

)

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

Protection

 

 

 

 

 

 

 

 

 

Market

 

Valuation

 

Valuation

 

 

 

 

 

 

 

 

 

Impacts

 

Assumptions &

 

Assumptions &

 

 

 

 

 

 

 

(in millions, unaudited)

 

to DAC/DSIC (5)

 

Model Changes (6)

 

Model Changes (6)

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

 

 

 

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

(29

)

 

 

 

 

 

 

Total revenues

 

 

 

(29

)

 

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

 

 

(29

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

1

 

5

 

1

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

5

 

17

 

(9

)

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

6

 

22

 

(8

)

 

 

 

 

 

 

Pretax operating earnings

 

$

(6

)

$

(22

)

$

(21

)

 

 

 

 

 

 

 


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

(2)             Variable annuity guaranteed benefit impacts include:

$17 million net benefit related to hedged variable annuity benefits

$8 million increase in DAC and DSIC amortization resulting from hedged benefits

(3)             Indexed universal life benefit impacts include:

$7 million net benefit related to hedged indexed universal life benefits

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

$2 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)             Increase in DAC and DSIC amortization from lower than projected separate account growth

(6)             Net pretax impact of model changes and the annual review/updating of valuation assumptions

 

40



 

Ameriprise Financial, Inc.

Disclosed Items

2 Qtr 2014

 

Excluded from Operating Earnings

 

 

 

Annuities

 

Protection

 

Corporate and
Eliminations

 

 

 

 

 

 

 

Market Impact on

 

Market Impact on

 

 

 

 

 

 

 

Securities

 

VA Guaranteed

 

Indexed Universal

 

 

 

 

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Life Benefits (3)

 

CIEs (4)

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

(29

)

 

 

Distribution fees

 

 

 

 

 

 

 

Net investment income

 

1

 

 

 

43

 

 

 

Premiums

 

 

 

 

 

 

 

Other revenues

 

 

 

(4

)

146

 

 

 

Total revenues

 

1

 

 

(4

)

160

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

Total net revenues

 

1

 

 

(4

)

160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

(1

)

 

 

 

Benefits, claims, losses and settlement expenses

 

 

64

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

(10

)

(3

)

 

 

 

Interest and debt expense

 

 

 

 

45

 

 

 

General and administrative expense

 

 

 

 

22

 

 

 

Total expenses

 

 

54

 

(4

)

67

 

 

 

Pretax segment income (loss)

 

1

 

(54

)

 

93

 

 

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

 

 

93

 

 

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

1

 

$

(54

)

$

 

$

 

 

 

 

 

 

 

 

 

 

 

Included in Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Management

 

Annuities

 

Protection

 

 

 

 

 

Market

 

 

 

Auto & Home

 

Market

 

 

 

CLO

 

Impacts

 

Variable Annuity

 

Catastrophe

 

Impacts

 

(in millions, unaudited)

 

Benefit (5)

 

to DAC/DSIC (6)

 

Product Changes (7)

 

Losses (8)

 

to DAC/DSIC (6)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

14

 

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

 

Net investment income

 

9

 

 

 

 

 

Premiums

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

Total revenues

 

23

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

Operating total net revenues

 

23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

(3

)

(12

)

33

 

 

Amortization of deferred acquisition costs

 

 

(12

)

2

 

 

(1

)

Interest and debt expense

 

 

 

 

 

 

General and administrative expense

 

6

 

 

 

 

 

Operating expenses

 

6

 

(15

)

(10

)

33

 

(1

)

Pretax operating earnings

 

$

17

 

$

15

 

$

10

 

$

(33

)

$

1

 

 


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

(2)             Variable annuity guaranteed benefit impacts include:

$65 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:

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

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

$4 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)             CLO fund liquidation benefit

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

(7)             Benefit related to the addition of Portfolio Stabilizer (managed volatility) fund options for in-force variable annuities with living benefit guarantees

(8)             Total Auto & Home catastrophe losses for the quarter, which were $12 million higher than expectations

 

41



 

Ameriprise Financial, Inc.

Disclosed Items

1 Qtr 2014

 

 

 

Excluded from Operating Earnings

 

 

 

Annuities

 

Protection

 

Corporate and
Eliminations

 

 

 

 

 

Market Impact on

 

 

 

Market Impact on

 

 

 

 

 

Securities

 

VA Guaranteed

 

Securities

 

Indexed Universal

 

 

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Gains/(Losses) (1)

 

Life Benefits (3)

 

CIEs (4)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

(14

)

Distribution fees

 

 

 

 

 

 

Net investment income

 

4

 

 

1

 

 

74

 

Premiums

 

 

 

 

 

 

Other revenues

 

 

 

 

2

 

117

 

Total revenues

 

4

 

 

1

 

2

 

177

 

Banking and deposit interest expense

 

 

 

 

 

 

Total net revenues

 

4

 

 

1

 

2

 

177

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

15

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

1

 

 

Interest and debt expense

 

 

 

 

 

50

 

General and administrative expense

 

 

 

 

 

12

 

Total expenses

 

 

15

 

 

1

 

62

 

Pretax segment income (loss)

 

4

 

(15

)

1

 

1

 

115

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

 

 

 

115

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

4

 

$

(15

)

$

1

 

$

1

 

$

 

 

Included in Operating Earnings

 

 

 

Annuities

 

Protection

 

Consolidated

 

 

 

Market

 

 

 

 

 

Auto & Home

 

 

 

 

 

Impacts

 

Variable Annuity

 

Auto & Home

 

Weather Related

 

Tax

 

(in millions, unaudited)

 

to DAC/DSIC (5)

 

Product Changes (6)

 

Reserves (7)

 

Losses (8)

 

Benefit (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

)

(34

)

30

 

20

 

 

Amortization of deferred acquisition costs

 

(6

)

5

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

General and administrative expense

 

 

 

 

 

 

Operating expenses

 

(8

)

(29

)

30

 

20

 

 

Pretax operating earnings

 

$

8

 

$

29

 

$

(30

)

$

(20

)

$

 

Tax benefit

 

 

 

 

 

 

 

 

 

$

17

 

 


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

(2)       Variable annuity guaranteed benefit impacts include:

$16 million net expense related to hedged variable annuity benefits

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

(3)       Indexed universal life benefit impacts include:

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

$2 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)       Decrease in DAC and DSIC amortization from higher than projected separate account growth

(6)       Benefit related to the addition of Portfolio Stabilizer (managed volatility) fund options for in-force variable annuities with living benefit guarantees

(7)       Increase in auto and home auto liability reserves based upon additional analysis and information regarding adverse development of bodily injury claims

(8)       Auto and home weather-related losses from severe winter weather

(9)       Tax benefit from the completion of tax audits from previous years

 

42



 

Exhibit B

 

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2015

 

Non-GAAP Financial Measure Reconciliations

 

43



 

Ameriprise Financial, Inc.

Non-GAAP Financial Measure Reconciliations

First Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-date

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2014

 

2015

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Ameriprise Financial (last twelve months)

 

$

1,399

 

$

1,452

 

$

1,490

 

$

1,619

 

$

1,612

 

$

1,399

 

$

1,612

 

Less income (loss) from discontinued operations, net of tax (last twelve months)

 

(3

)

(2

)

(3

)

(2

)

(1

)

(3

)

(1

)

Net income from continuing operations attributable to Ameriprise Financial (last twelve months)

 

1,402

 

1,454

 

1,493

 

1,621

 

1,613

 

1,402

 

1,613

 

Less adjustments (1)

 

(127

)

(131

)

(107

)

(41

)

(54

)

(127

)

(54

)

Operating earnings (last twelve months)

 

$

1,529

 

$

1,585

 

$

1,600

 

$

1,662

 

$

1,667

 

$

1,529

 

$

1,667

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

8,432

 

$

8,326

 

$

8,310

 

$

8,270

 

$

8,270

 

$

8,432

 

$

8,270

 

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

 

731

 

698

 

723

 

734

 

755

 

731

 

755

 

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

 

7,701

 

7,628

 

7,587

 

7,536

 

7,515

 

7,701

 

7,515

 

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

 

337

 

330

 

331

 

311

 

300

 

337

 

300

 

Operating equity (five point quarter end average)

 

$

7,364

 

$

7,298

 

$

7,256

 

$

7,225

 

$

7,215

 

$

7,364

 

$

7,215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity excluding AOCI

 

18.2

%

19.1

%

19.7

%

21.5

%

21.5

%

18.2

%

21.5

%

Operating return on equity excluding AOCI

 

20.8

%

21.7

%

22.1

%

23.0

%

23.1

%

20.8

%

23.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective Tax Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax provision

 

$

650

 

$

619

 

$

720

 

$

558

 

$

618

 

$

650

 

$

618

 

Less pretax income (loss) attributable to noncontrolling interests

 

115

 

93

 

145

 

28

 

86

 

115

 

86

 

Income from continuing operations before income tax provision excluding consolidated investment entities (CIEs)

 

535

 

526

 

575

 

530

 

532

 

535

 

532

 

Less adjustments (2)

 

(9

)

(53

)

21

 

(22

)

(30

)

(9

)

(30

)

Pretax operating earnings

 

$

544

 

$

579

 

$

554

 

$

552

 

$

562

 

$

544

 

$

562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision from continuing operations

 

$

134

 

$

152

 

$

155

 

$

104

 

$

139

 

$

134

 

$

139

 

Operating income tax provision

 

$

137

 

$

171

 

$

147

 

$

112

 

$

150

 

$

137

 

$

150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

20.7

%

24.5

%

21.6

%

18.7

%

22.5

%

20.7

%

22.5

%

Effective tax rate excluding noncontrolling interests

 

25.1

%

28.7

%

27.0

%

19.7

%

26.1

%

25.1

%

26.1

%

Operating effective tax rate

 

25.2

%

29.5

%

26.5

%

20.3

%

26.7

%

25.2

%

26.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1)             Adjustments reflect the trailing twelve months’ sum of after-tax net realized gains/losses; the market impact on variable annuity guaranteed benefits, net of hedges and 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; and integration/restructuring charges. After-tax is calculated using the statutory tax rate of 35%.

 

(2)             Adjustments reflect net realized gains/losses; the market impact on variable annuity guaranteed benefits net of hedges and 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; and integration/restructuring charges.

 

44



 

Ameriprise Financial, Inc.

Non-GAAP Financial Measure Reconciliations

First Quarter 2015

 

(in millions unless otherwise noted, unaudited)

 

March 31, 2014

 

June 30, 2014

 

September 30, 2014

 

December 31, 2014

 

March 31, 2015

 

Long-term Debt Summary

 

 

 

 

 

 

 

 

 

 

 

Senior notes

 

$

2,425

 

$

2,229

 

$

2,765

 

$

2,768

 

$

2,772

 

Junior subordinated notes

 

294

 

294

 

294

 

294

 

294

 

Total Ameriprise Financial long-term debt

 

2,719

 

2,523

 

3,059

 

3,062

 

3,066

 

Less fair value of hedges and unamortized discount

 

75

 

79

 

65

 

68

 

72

 

Total Ameriprise Financial long-term debt excluding fair value of hedges and unamortized discount

 

$

2,644

 

$

2,444

 

$

2,994

 

$

2,994

 

$

2,994

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Summary

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

$

9,445

 

$

9,677

 

$

9,340

 

$

9,305

 

$

9,259

 

Less noncontrolling interests

 

1,101

 

1,249

 

1,080

 

1,181

 

1,064

 

Total Ameriprise Financial shareholders’ equity

 

8,344

 

8,428

 

8,260

 

8,124

 

8,195

 

Less equity of consolidated investment entities

 

340

 

308

 

296

 

222

 

266

 

Total Ameriprise Financial shareholders’ equity excluding CIEs

 

$

8,004

 

$

8,120

 

$

7,964

 

$

7,902

 

$

7,929

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Summary

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt

 

$

2,719

 

$

2,523

 

$

3,059

 

$

3,062

 

$

3,066

 

Total Ameriprise Financial shareholders’ equity

 

8,344

 

8,428

 

8,260

 

8,124

 

8,195

 

Total Ameriprise Financial capital

 

11,063

 

10,951

 

11,319

 

11,186

 

11,261

 

Less equity of consolidated investment entities

 

340

 

308

 

296

 

222

 

266

 

Less fair value of hedges and unamortized discount

 

75

 

79

 

65

 

68

 

72

 

Total Ameriprise Financial capital excluding fair value of hedges, unamortized discount and equity of CIEs

 

$

10,648

 

$

10,564

 

$

10,958

 

$

10,896

 

$

10,923

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

24.6

%

23.0

%

27.0

%

27.4

%

27.2

%

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

 

24.8

%

23.1

%

27.3

%

27.5

%

27.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial shareholders’ equity

 

$

8,344

 

$

8,428

 

$

8,260

 

$

8,124

 

$

8,195

 

AOCI

 

746

 

920

 

746

 

662

 

704

 

Appropriated retained earnings of CIEs

 

356

 

320

 

308

 

234

 

279

 

AOCI attributable to CIEs

 

(16

)

(12

)

(12

)

(12

)

(13

)

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial shareholders’ equity

 

$

8,344

 

$

8,428

 

$

8,260

 

$

8,124

 

$

8,195

 

Less AOCI

 

746

 

920

 

746

 

662

 

704

 

Ameriprise Financial shareholders’ equity excluding AOCI

 

$

7,598

 

$

7,508

 

$

7,514

 

$

7,462

 

$

7,491

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial shareholders’ equity

 

$

8,344

 

$

8,428

 

$

8,260

 

$

8,124

 

$

8,195

 

Less appropriated retained earnings of CIEs

 

356

 

320

 

308

 

234

 

279

 

Less AOCI

 

746

 

920

 

746

 

662

 

704

 

Ameriprise Financial shareholders’ equity excluding CIEs and AOCI

 

$

7,242

 

$

7,188

 

$

7,206

 

$

7,228

 

$

7,212

 

 

45