EX-99.2 3 a13-16849_1ex99d2.htm EX-99.2

Exhibit 99.2

 

 

 

Statistical Supplement Package

(unaudited)

 

Second Quarter 2013

 



 

Ameriprise Financial, Inc.

Statistical Supplement Information

Table of Contents

 

 

Page

Ameriprise Financial, Inc.

 

Statistical Supplement Presentation

4

Consolidated GAAP Income Statements

5

Consolidated Operating Results and Highlights

6

Common Share and Capital Summary

8

Segment Summary

10

Advice & Wealth Management Segment

 

Segment Operating Income Statements

12

Segment Metrics

13

Asset Management Segment

 

Segment Operating Income Statements

15

Segment Metrics

16

Columbia Asset Management Products

17

Threadneedle Asset Management Products

18

Retail Fund Performance - Columbia

19

Retail Fund Performance - Threadneedle

20

Annuities Segment

 

Segment Operating Income Statements

22

Segment Metrics

23

Protection Segment

 

Segment Operating Income Statements

25

Segment Metrics

26

Corporate & Other Segment

 

Segment Operating Income Statements

28

Eliminations

 

Operating Income Statements

29

Balance Sheet and Ratings Information

 

Consolidated Balance Sheets

31

Capital and Ratings Information

32

Investments

33

Non-GAAP Financial Information

34

Glossary of Selected Terminology

 

Glossary of Selected Terminology - Segments

35

Glossary of Selected Terminology

36

Exhibit A

 

Disclosed Items

38

Exhibit B

 

Non-GAAP Financial Measure Reconciliations

44

 

2



 

 

 

Statistical Supplement Package

(unaudited)

 

Second Quarter 2013

 

Consolidated Results

 

3



 

Ameriprise Financial, Inc.

Statistical Supplement Presentation

Second Quarter 2013

 

Ameriprise Financial, Inc. (“Ameriprise Financial” or “the Company”) prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”). Management believes that operating measures, which exclude net realized gains or losses; the market impact on variable annuity guaranteed living benefits, net of hedges and the related deferred sales inducement costs (“DSIC”) and deferred acquisition costs (“DAC”) amortization; 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 living benefits and indexed universal life benefits includes changes in liability values caused by changes in financial market conditions, net of changes in associated economic hedge values.  The market impact also includes certain valuation adjustments made in accordance with Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value Measurements and Disclosures (“ASC 820”), including the impact on liability values of discounting projected benefits to reflect a current estimate of RiverSource Life Insurance Company’s nonperformance spread.  Further, the market impact is net of related impacts on DAC, 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

Second Quarter 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions, except per share amounts, unaudited)

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

2012

 

2013

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

1,152

 

$

1,191

 

$

1,217

 

$

1,244

 

$

1,294

 

$

2,284

 

$

2,538

 

$

142

 

12

%

$

254

 

11

%

$

50

 

4

%

Distribution fees

 

396

 

391

 

427

 

434

 

448

 

798

 

882

 

52

 

13

%

84

 

11

%

14

 

3

%

Net investment income

 

472

 

427

 

503

 

489

 

451

 

1,003

 

940

 

(21

)

(4

)%

(63

)

(6

)%

(38

)

(8

)%

Premiums

 

302

 

309

 

311

 

310

 

315

 

603

 

625

 

13

 

4

%

22

 

4

%

5

 

2

%

Other revenues

 

202

 

161

 

226

 

222

 

249

 

408

 

471

 

47

 

23

%

63

 

15

%

27

 

12

%

Total revenues

 

2,524

 

2,479

 

2,684

 

2,699

 

2,757

 

5,096

 

5,456

 

233

 

9

%

360

 

7

%

58

 

2

%

Banking and deposit interest expense

 

10

 

11

 

10

 

8

 

8

 

21

 

16

 

(2

)

(20

)%

(5

)

(24

)%

 

 

Total net revenues

 

2,514

 

2,468

 

2,674

 

2,691

 

2,749

 

5,075

 

5,440

 

235

 

9

%

365

 

7

%

58

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

663

 

667

 

702

 

726

 

760

 

1,329

 

1,486

 

97

 

15

%

157

 

12

%

34

 

5

%

Interest credited to fixed accounts

 

209

 

207

 

209

 

198

 

198

 

415

 

396

 

(11

)

(5

)%

(19

)

(5

)%

 

 

Benefits, claims, losses and settlement expenses

 

409

 

542

 

443

 

409

 

490

 

914

 

899

 

81

 

20

%

(15

)

(2

)%

81

 

20

%

Amortization of deferred acquisition costs

 

99

 

67

 

89

 

75

 

92

 

130

 

167

 

(7

)

(7

)%

37

 

28

%

17

 

23

%

Interest and debt expense

 

72

 

68

 

67

 

66

 

60

 

141

 

126

 

(12

)

(17

)%

(15

)

(11

)%

(6

)

(9

)%

General and administrative expense

 

763

 

718

 

746

 

730

 

747

 

1,525

 

1,477

 

(16

)

(2

)%

(48

)

(3

)%

17

 

2

%

Total expenses

 

2,215

 

2,269

 

2,256

 

2,204

 

2,347

 

4,454

 

4,551

 

132

 

6

%

97

 

2

%

143

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax provision

 

299

 

199

 

418

 

487

 

402

 

621

 

889

 

103

 

34

%

268

 

43

%

(85

)

(17

)%

Income tax provision

 

128

 

47

 

87

 

121

 

120

 

201

 

241

 

(8

)

(6

)%

40

 

20

%

(1

)

(1

)%

Income from continuing operations

 

171

 

152

 

331

 

366

 

282

 

420

 

648

 

111

 

65

%

228

 

54

%

(84

)

(23

)%

Income (loss) from discontinued operations, net of tax

 

(1

)

(1

)

1

 

(1

)

(1

)

(2

)

(2

)

 

 

 

 

 

 

Net income

 

170

 

151

 

332

 

365

 

281

 

418

 

646

 

111

 

65

%

228

 

55

%

(84

)

(23

)%

Less: Net income (loss) attributable to noncontrolling interests

 

(53

)

(22

)

(57

)

30

 

(40

)

(49

)

(10

)

13

 

25

%

39

 

80

%

(70

)

#

 

Net income attributable to Ameriprise Financial

 

$

223

 

$

173

 

$

389

 

$

335

 

$

321

 

$

467

 

$

656

 

$

98

 

44

%

$

189

 

40

%

$

(14

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

454

 

$

442

 

$

415

 

$

401

 

$

403

 

$

911

 

$

804

 

$

(51

)

(11

)%

$

(107

)

(12

)%

$

2

 

 

Realized gains (losses)

 

(5

)

(68

)

82

 

1

 

 

(7

)

1

 

5

 

#

 

8

 

#

 

(1

)

#

 

Affordable housing

 

(4

)

(5

)

(8

)

(7

)

(1

)

(12

)

(8

)

3

 

75

%

4

 

33

%

6

 

86

%

Other (including seed money)

 

13

 

15

 

22

 

17

 

42

 

36

 

59

 

29

 

#

 

23

 

64

%

25

 

#

 

Consolidated investment entities

 

14

 

43

 

(8

)

77

 

7

 

75

 

84

 

(7

)

(50

)%

9

 

12

%

(70

)

(91

)%

Total net investment income

 

$

472

 

$

427

 

$

503

 

$

489

 

$

451

 

$

1,003

 

$

940

 

$

(21

)

(4

)%

$

(63

)

(6

)%

$

(38

)

(8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

1.01

 

$

0.81

 

$

1.84

 

$

1.61

 

$

1.57

 

$

2.09

 

$

3.18

 

$

0.56

 

55

%

$

1.09

 

52

%

$

(0.04

)

(2

)%

Income (loss) from discontinued operations

 

 

(0.01

)

0.01

 

 

 

(0.01

)

(0.01

)

 

 

 

 

 

 

Net income

 

$

1.01

 

$

0.80

 

$

1.85

 

$

1.61

 

$

1.57

 

$

2.08

 

$

3.17

 

$

0.56

 

55

%

$

1.09

 

52

%

$

(0.04

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.99

 

$

0.79

 

$

1.80

 

$

1.58

 

$

1.54

 

$

2.05

 

$

3.13

 

$

0.55

 

56

%

$

1.08

 

53

%

$

(0.04

)

(3

)%

Income (loss) from discontinued operations

 

 

 

0.01

 

 

 

(0.01

)

(0.01

)

 

 

 

 

 

 

Net income

 

$

0.99

 

$

0.79

 

$

1.81

 

$

1.58

 

$

1.54

 

$

2.04

 

$

3.12

 

$

0.55

 

56

%

$

1.08

 

53

%

$

(0.04

)

(3

)%

Earnings per diluted share growth (from continuing operations)

 

(22.0

)%

(40.6

)%

89.5

%

49.1

%

55.6

%

(17.3

)%

52.7

%

77.6

%

 

 

70.0

%

 

 

6.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

221.7

 

215.0

 

210.8

 

208.4

 

204.9

 

224.5

 

206.6

 

(16.8

)

(8

)%

(17.9

)

(8

)%

(3.5

)

(2

)%

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

 

3.9

 

4.1

 

4.3

 

3.9

 

3.7

 

4.1

 

3.8

 

(0.2

)

(5

)%

(0.3

)

(7

)%

(0.2

)

(5

)%

Diluted weighted average common shares outstanding

 

225.6

 

219.1

 

215.1

 

212.3

 

208.6

 

228.6

 

210.4

 

(17.0

)

(8

)%

(18.2

)

(8

)%

(3.7

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue growth

 

(4.2

)%

0.5

%

3.6

%

5.1

%

9.3

%

(1.6

)%

7.2

%

13.5

%

 

 

8.8

%

 

 

4.2

%

 

 

Pretax income margin (1)

 

11.9

%

8.1

%

15.6

%

18.1

%

14.6

%

12.2

%

16.3

%

2.7

%

 

 

4.1

%

 

 

(3.5

)%

 

 

Effective tax rate (2)

 

42.8

%

23.8

%

20.8

%

25.0

%

29.6

%

32.4

%

27.1

%

(13.2

)%

 

 

(5.3

)%

 

 

4.6

%

 

 

Effective tax rate excluding noncontrolling interests (2)(3)

 

36.4

%

21.4

%

18.3

%

26.6

%

26.9

%

30.0

%

26.8

%

(9.5

)%

 

 

(3.2

)%

 

 

0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial shareholders’ equity / outstanding shares (4)

 

$

41.33

 

$

43.05

 

$

43.44

 

$

43.37

 

$

41.10

 

$

41.33

 

$

41.10

 

$

(0.23

)

(1

)%

$

(0.23

)

(1

)%

$

(2.27

)

(5

)%

Ameriprise Financial shareholders’ equity excluding AOCI / outstanding shares (3)(5)

 

$

37.00

 

$

37.09

 

$

37.74

 

$

38.12

 

$

38.02

 

$

37.00

 

$

38.02

 

$

1.02

 

3

%

$

1.02

 

3

%

$

(0.10

)

 

 


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

(2)        Q2 2012 includes a tax-related item related to incomplete data received from a third party service provider for securities lending activities in prior periods.

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

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

(5)        Calculated as Ameriprise Financial shareholders’ equity 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

Second Quarter 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions except per share amounts, unaudited)

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

2012

 

2013

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

$

2,514

 

$

2,468

 

$

2,674

 

$

2,691

 

$

2,749

 

$

5,075

 

$

5,440

 

$

235

 

9

%

$

365

 

7

%

$

58

 

2

%

Less revenues attributable to the CIEs

 

1

 

27

 

(9

)

82

 

12

 

53

 

94

 

11

 

#

 

41

 

77

%

(70

)

(85

)%

Less realized gains (losses)

 

(5

)

(68

)

82

 

1

 

 

(7

)

1

 

5

 

#

 

8

 

#

 

(1

)

#

 

Less market impact on indexed universal life benefits

 

 

 

 

 

(1

)

 

(1

)

(1

)

 

(1

)

 

(1

)

 

Less integration/restructuring charges

 

 

(8

)

4

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues (1)

 

$

2,518

 

$

2,517

 

$

2,597

 

$

2,608

 

$

2,738

 

$

5,029

 

$

5,346

 

$

220

 

9

%

$

317

 

6

%

$

130

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Ameriprise Financial

 

$

223

 

$

173

 

$

389

 

$

335

 

$

321

 

$

467

 

$

656

 

$

98

 

44

%

$

189

 

40

%

$

(14

)

(4

)%

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

 

(1

)

(1

)

1

 

(1

)

(1

)

(2

)

(2

)

 

 

 

 

 

 

Net income from continuing operations attributable to Ameriprise Financial

 

224

 

174

 

388

 

336

 

322

 

469

 

658

 

98

 

44

%

189

 

40

%

(14

)

(4

)%

Integration/restructuring charges, net of tax (2)

 

17

 

11

 

3

 

1

 

1

 

32

 

2

 

(16

)

(94

)%

(30

)

(94

)%

 

 

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

 

9

 

60

 

30

 

2

 

28

 

83

 

30

 

19

 

#

 

(53

)

(64

)%

26

 

#

 

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

 

 

 

 

 

1

 

 

1

 

1

 

 

1

 

 

1

 

 

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

 

(4

)

(44

)

54

 

1

 

 

(5

)

1

 

4

 

#

 

6

 

#

 

(1

)

#

 

Operating earnings (1)

 

$

254

 

$

289

 

$

367

 

$

338

 

$

352

 

$

589

 

$

690

 

$

98

 

39

%

$

101

 

17

%

$

14

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax provision

 

$

299

 

$

199

 

$

418

 

$

487

 

$

402

 

$

621

 

$

889

 

$

103

 

34

%

$

268

 

43

%

$

(85

)

(17

)%

Less net income (loss) attributable to noncontrolling interests

 

(53

)

(22

)

(57

)

30

 

(40

)

(49

)

(10

)

13

 

25

%

39

 

80

%

(70

)

#

 

Pretax earnings excluding CIEs

 

352

 

221

 

475

 

457

 

442

 

670

 

899

 

90

 

26

%

229

 

34

%

(15

)

(3

)%

Integration/restructuring charges

 

26

 

17

 

5

 

2

 

1

 

49

 

3

 

(25

)

(96

)%

(46

)

(94

)%

(1

)

(50

)%

Market impact on variable annuity guaranteed living benefits

 

16

 

91

 

45

 

2

 

43

 

129

 

45

 

27

 

#

 

(84

)

(65

)%

41

 

#

 

Market impact on indexed universal life benefits

 

 

 

 

 

2

 

 

2

 

2

 

 

2

 

 

2

 

 

Less realized gains (losses)

 

(5

)

(68

)

82

 

1

 

 

(7

)

1

 

5

 

#

 

8

 

#

 

(1

)

#

 

Pretax operating earnings (1)

 

$

399

 

$

397

 

$

443

 

$

460

 

$

488

 

$

855

 

$

948

 

$

89

 

22

%

$

93

 

11

%

$

28

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Operating Margin (1)(3)

 

15.8

%

15.8

%

17.1

%

17.6

%

17.8

%

17.0

%

17.7

%

2.0

%

 

 

0.7

%

 

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Effective Tax Rate (1)(4)(5)

 

36.3

%

27.2

%

17.2

%

26.5

%

27.9

%

31.1

%

27.2

%

(8.4

)%

 

 

(3.9

)%

 

 

1.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

221.7

 

215.0

 

210.8

 

208.4

 

204.9

 

224.5

 

206.6

 

(16.8

)

(8

)%

(17.9

)

(8

)%

(3.5

)

(2

)%

Diluted

 

225.6

 

219.1

 

215.1

 

212.3

 

208.6

 

228.6

 

210.4

 

(17.0

)

(8

)%

(18.2

)

(8

)%

(3.7

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Earnings Per Share (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic operating earnings per share

 

$

1.15

 

$

1.34

 

$

1.74

 

$

1.62

 

$

1.72

 

$

2.62

 

$

3.34

 

$

0.57

 

50

%

$

0.72

 

27

%

$

0.10

 

6

%

Operating earnings per diluted share

 

$

1.13

 

$

1.32

 

$

1.71

 

$

1.59

 

$

1.69

 

$

2.58

 

$

3.28

 

$

0.56

 

50

%

$

0.70

 

27

%

$

0.10

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity excluding AOCI (1)(4)

 

12.3

%

10.7

%

12.8

%

14.0

%

15.5

%

12.3

%

15.5

%

3.2

%

 

 

3.2

%

 

 

1.5

%

 

 

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

 

15.2

%

15.4

%

16.2

%

16.4

%

17.9

%

15.2

%

17.9

%

2.7

%

 

 

2.7

%

 

 

1.5

%

 

 

 


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

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

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

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

(5)        Q2 2012 includes a tax-related item related to incomplete data received from a third party service provider for securities lending activities in prior periods.

 

# Variance of greater than 100%.

 

6



 

Ameriprise Financial, Inc.

Consolidated Operating Results and Highlights

Second Quarter 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

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

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

2012

 

2013

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

39.63

 

$

41.34

 

$

41.95

 

$

41.73

 

$

39.71

 

$

39.63

 

$

39.71

 

$

0.08

 

 

$

0.08

 

 

$

(2.02

)

(5

)%

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

 

$

35.20

 

$

35.26

 

$

36.13

 

$

36.37

 

$

36.55

 

$

35.20

 

$

36.55

 

$

1.35

 

4

%

$

1.35

 

4

%

$

0.18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenue growth: Target 6 - 8%

 

(2.9

)%

0.3

%

5.8

%

3.9

%

8.7

%

(1.1

)%

6.3

%

11.6

%

 

 

7.4

%

 

 

4.8

%

 

 

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

 

(15.0

)%

10.9

%

30.5

%

9.7

%

49.6

%

(3.0

)%

27.1

%

64.6

%

 

 

30.1

%

 

 

39.9

%

 

 

Operating return on equity excluding AOCI: Target 15 - 18% (1)

 

15.2

%

15.4

%

16.2

%

16.4

%

17.9

%

15.2

%

17.9

%

2.7

%

 

 

2.7

%

 

 

1.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

21.1

%

20.9

%

20.9

%

21.1

%

22.0

%

21.1

%

22.0

%

0.9

%

 

 

0.9

%

 

 

0.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill and Intangible Assets

 

$

2,125

 

$

2,125

 

$

2,113

 

$

2,074

 

$

2,065

 

$

2,125

 

$

2,065

 

$

(60

)

(3

)%

$

(60

)

(3

)%

$

(9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Under Management and Administration

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management AUM

 

$

114,690

 

$

121,675

 

$

125,014

 

$

134,172

 

$

136,334

 

$

114,690

 

$

136,334

 

$

21,644

 

19

%

$

21,644

 

19

%

$

2,162

 

2

%

Asset Management AUM

 

445,804

 

460,856

 

455,441

 

466,487

 

459,366

 

445,804

 

459,366

 

13,562

 

3

%

13,562

 

3

%

(7,121

)

(2

)%

Corporate AUM (4)

 

25

 

26

 

26

 

1,044

 

1,005

 

25

 

1,005

 

980

 

#

 

980

 

#

 

(39

)

(4

)%

Eliminations

 

(16,945

)

(18,080

)

(18,117

)

(19,147

)

(19,035

)

(16,945

)

(19,035

)

(2,090

)

(12

)%

(2,090

)

(12

)%

112

 

1

%

Total Assets Under Management

 

543,574

 

564,477

 

562,364

 

582,556

 

577,670

 

543,574

 

577,670

 

34,096

 

6

%

34,096

 

6

%

(4,886

)

(1

)%

Total Assets Under Administration

 

111,177

 

113,986

 

118,673

 

125,170

 

125,558

 

111,177

 

125,558

 

14,381

 

13

%

14,381

 

13

%

388

 

 

Total AUM and AUA

 

$

654,751

 

$

678,463

 

$

681,037

 

$

707,726

 

$

703,228

 

$

654,751

 

$

703,228

 

$

48,477

 

7

%

$

48,477

 

7

%

$

(4,498

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise client assets

 

$

330,847

 

$

344,857

 

$

352,751

 

$

371,916

 

$

373,100

 

$

330,847

 

$

373,100

 

$

42,253

 

13

%

$

42,253

 

13

%

$

1,184

 

 

Total branded financial advisors

 

9,803

 

9,815

 

9,767

 

9,777

 

9,788

 

9,803

 

9,788

 

(15

)

 

(15

)

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Flows and Net Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded advisor wrap

 

$

2,634

 

$

2,062

 

$

2,062

 

$

4,073

 

$

3,115

 

$

5,521

 

$

7,188

 

$

481

 

18

%

$

1,667

 

30

%

$

(958

)

(24

)%

Asset Management

 

(6,648

)

(3,475

)

(3,945

)

(5,742

)

(2,102

)

(11,250

)

(7,844

)

4,546

 

68

%

3,406

 

30

%

3,640

 

63

%

Annuities

 

(324

)

(396

)

(517

)

(462

)

(410

)

(425

)

(872

)

(86

)

(27

)%

(447

)

#

 

52

 

11

%

Variable universal life / Universal life

 

(50

)

(49

)

(27

)

(53

)

(34

)

(102

)

(87

)

16

 

32

%

15

 

15

%

19

 

36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

S&P 500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Daily average

 

1,350

 

1,402

 

1,417

 

1,515

 

1,610

 

1,348

 

1,563

 

260

 

19

%

215

 

16

%

95

 

6

%

Period end

 

1,362

 

1,441

 

1,426

 

1,569

 

1,606

 

1,362

 

1,606

 

244

 

18

%

244

 

18

%

37

 

2

%

 


(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)           In the first quarter of 2013, Corporate AUM was redefined to include consumer loans that were reclassified from Receivables to Investments in the fourth quarter of 2012.

 

# Variance of greater than 100%.

 

7



 

Ameriprise Financial, Inc.

Common Share and Capital Summary

Second Quarter 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

2012

 

2013

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

219.6

 

212.7

 

207.4

 

203.9

 

202.5

 

221.9

 

203.9

 

(17.1

)

(8

)%

(18.0

)

(8

)%

(1.4

)

(1

)%

Repurchases

 

(7.0

)

(6.3

)

(5.9

)

(5.2

)

(4.9

)

(12.4

)

(10.1

)

2.1

 

30

%

2.3

 

19

%

0.3

 

6

%

Issuances

 

0.1

 

1.1

 

2.7

 

5.4

 

1.8

 

3.5

 

7.2

 

1.7

 

#

 

3.7

 

#

 

(3.6

)

(67

)%

Other

 

 

(0.1

)

(0.3

)

(1.6

)

(0.9

)

(0.3

)

(2.5

)

(0.9

)

 

(2.2

)

#

 

0.7

 

44

%

Total common shares outstanding

 

212.7

 

207.4

 

203.9

 

202.5

 

198.5

 

212.7

 

198.5

 

(14.2

)

(7

)%

(14.2

)

(7

)%

(4.0

)

(2

)%

Nonforfeitable restricted stock units

 

5.2

 

5.3

 

5.4

 

4.1

 

4.4

 

5.2

 

4.4

 

(0.8

)

(15

)%

(0.8

)

(15

)%

0.3

 

7

%

Total basic common shares outstanding

 

217.9

 

212.7

 

209.3

 

206.6

 

202.9

 

217.9

 

202.9

 

(15.0

)

(7

)%

(15.0

)

(7

)%

(3.7

)

(2

)%

Total potentially dilutive shares

 

3.7

 

4.1

 

4.0

 

3.6

 

3.6

 

3.7

 

3.6

 

(0.1

)

(3

)%

(0.1

)

(3

)%

 

 

Total diluted shares

 

221.6

 

216.8

 

213.3

 

210.2

 

206.5

 

221.6

 

206.5

 

(15.1

)

(7

)%

(15.1

)

(7

)%

(3.7

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Returned to Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

$

78

 

$

76

 

$

96

 

$

94

 

$

108

 

$

142

 

$

202

 

$

30

 

38

%

$

60

 

42

%

$

14

 

15

%

Common stock share repurchases

 

$

350

 

$

340

 

$

350

 

$

360

 

$

380

 

$

650

 

$

740

 

$

30

 

9

%

$

90

 

14

%

$

20

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated Equity (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

$

814

 

$

772

 

$

444

 

$

450

 

$

450

 

$

814

 

$

450

 

$

(364

)

(45

)%

$

(364

)

(45

)%

$

 

 

Asset Management

 

1,964

 

1,942

 

1,929

 

1,908

 

1,903

 

1,964

 

1,903

 

(61

)

(3

)%

(61

)

(3

)%

(5

)

 

Annuities

 

2,673

 

2,425

 

2,394

 

2,266

 

2,415

 

2,673

 

2,415

 

(258

)

(10

)%

(258

)

(10

)%

149

 

7

%

Protection

 

1,760

 

1,731

 

1,753

 

1,751

 

1,794

 

1,760

 

1,794

 

34

 

2

%

34

 

2

%

43

 

2

%

Corporate & Other

 

458

 

630

 

1,042

 

1,140

 

854

 

458

 

854

 

396

 

86

%

396

 

86

%

(286

)

(25

)%

Total allocated equity

 

$

7,669

 

$

7,500

 

$

7,562

 

$

7,515

 

$

7,416

 

$

7,669

 

$

7,416

 

$

(253

)

(3

)%

$

(253

)

(3

)%

$

(99

)

(1

)%

 


(1)             Allocated equity equals Ameriprise Financial shareholders’ equity excluding consolidated investment entities less AOCI.  Allocated equity is not adjusted for non-operating items except for CIEs.

 

# Variance of greater than 100%.

 

8


 

 


 

 

 

 

Statistical Supplement Package

(unaudited)

 

Second Quarter 2013

 

 

Segment Results

 

9


 

 


 

Ameriprise Financial, Inc.

Segment Summary

Second Quarter 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

2012

 

2013

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

953

 

$

961

 

$

1,005

 

$

1,018

 

$

1,076

 

$

1,907

 

$

2,094

 

$

123

 

13

%

$

187

 

10

%

$

58

 

6

%

Operating expenses

 

842

 

842

 

886

 

887

 

924

 

1,702

 

1,811

 

82

 

10

%

109

 

6

%

37

 

4

%

Pretax operating earnings

 

$

111

 

$

119

 

$

119

 

$

131

 

$

152

 

$

205

 

$

283

 

$

41

 

37

%

$

78

 

38

%

$

21

 

16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

814

 

$

772

 

$

444

 

$

450

 

$

450

 

$

814

 

$

450

 

$

(364

)

(45

)%

$

(364

)

(45

)%

$

 

 

Operating return on allocated equity (1)

 

36.7

%

36.5

%

44.9

%

53.7

%

66.7

%

36.7

%

66.7

%

30.0

%

 

 

30.0

%

 

 

13.0

%

 

 

Pretax operating margin

 

11.6

%

12.4

%

11.8

%

12.9

%

14.1

%

10.7

%

13.5

%

2.5

%

 

 

2.8

%

 

 

1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

707

 

$

733

 

$

740

 

$

746

 

$

822

 

$

1,418

 

$

1,568

 

$

115

 

16

%

$

150

 

11

%

$

76

 

10

%

Operating expenses

 

577

 

578

 

599

 

602

 

623

 

1,157

 

1,225

 

46

 

8

%

68

 

6

%

21

 

3

%

Pretax operating earnings

 

$

130

 

$

155

 

$

141

 

$

144

 

$

199

 

$

261

 

$

343

 

$

69

 

53

%

$

82

 

31

%

$

55

 

38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

1,964

 

$

1,942

 

$

1,929

 

$

1,908

 

$

1,903

 

$

1,964

 

$

1,903

 

$

(61

)

(3

)%

$

(61

)

(3

)%

$

(5

)

 

Operating return on allocated equity (1)

 

18.3

%

19.6

%

20.9

%

21.5

%

24.8

%

18.3

%

24.8

%

6.5

%

 

 

6.5

%

 

 

3.3

%

 

 

Pretax operating margin

 

18.4

%

21.1

%

19.1

%

19.3

%

24.2

%

18.4

%

21.9

%

5.8

%

 

 

3.5

%

 

 

4.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

707

 

$

733

 

$

740

 

$

746

 

$

822

 

$

1,418

 

$

1,568

 

$

115

 

16

%

$

150

 

11

%

$

76

 

10

%

Distribution pass thru revenues

 

(203

)

(203

)

(209

)

(214

)

(225

)

(410

)

(439

)

(22

)

(11

)%

(29

)

(7

)%

(11

)

(5

)%

Subadvisory and other pass thru revenues

 

(95

)

(105

)

(103

)

(98

)

(136

)

(191

)

(234

)

(41

)

(43

)%

(43

)

(23

)%

(38

)

(39

)%

Adjusted operating revenues (2)

 

$

409

 

$

425

 

$

428

 

$

434

 

$

461

 

$

817

 

$

895

 

$

52

 

13

%

$

78

 

10

%

$

27

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

130

 

$

155

 

$

141

 

$

144

 

$

199

 

$

261

 

$

343

 

$

69

 

53

%

$

82

 

31

%

$

55

 

38

%

Operating net investment income

 

(2

)

(5

)

(7

)

(4

)

(41

)

(7

)

(45

)

(39

)

#

 

(38

)

#

 

(37

)

#

 

Amortization of intangibles

 

10

 

10

 

10

 

10

 

9

 

20

 

19

 

(1

)

(10

)%

(1

)

(5

)%

(1

)

(10

)%

Adjusted operating earnings (2)

 

$

138

 

$

160

 

$

144

 

$

150

 

$

167

 

$

274

 

$

317

 

$

29

 

21

%

$

43

 

16

%

$

17

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net pretax operating margin (2)(3)

 

33.7

%

37.6

%

33.6

%

34.6

%

36.2

%

33.5

%

35.4

%

2.5

%

 

 

1.9

%

 

 

1.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

628

 

$

632

 

$

636

 

$

630

 

$

641

 

$

1,256

 

$

1,271

 

$

13

 

2

%

$

15

 

1

%

$

11

 

2

%

Operating expenses

 

512

 

541

 

465

 

474

 

517

 

951

 

991

 

5

 

1

%

40

 

4

%

43

 

9

%

Pretax operating earnings

 

$

116

 

$

91

 

$

171

 

$

156

 

$

124

 

$

305

 

$

280

 

$

8

 

7

%

$

(25

)

(8

)%

$

(32

)

(21

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

2,673

 

$

2,425

 

$

2,394

 

$

2,266

 

$

2,415

 

$

2,673

 

$

2,415

 

$

(258

)

(10

)%

$

(258

)

(10

)%

$

149

 

7

%

Operating return on allocated equity (1)

 

16.7

%

15.4

%

16.6

%

16.2

%

16.9

%

16.7

%

16.9

%

0.2

%

 

 

0.2

%

 

 

0.7

%

 

 

Pretax operating margin

 

18.5

%

14.4

%

26.9

%

24.8

%

19.3

%

24.3

%

22.0

%

0.8

%

 

 

(2.3

)%

 

 

(5.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Protection

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

528

 

$

496

 

$

542

 

$

538

 

$

551

 

$

1,050

 

$

1,089

 

$

23

 

4

%

$

39

 

4

%

$

13

 

2

%

Operating expenses

 

419

 

407

 

449

 

428

 

453

 

834

 

881

 

34

 

8

%

47

 

6

%

25

 

6

%

Pretax operating earnings

 

$

109

 

$

89

 

$

93

 

$

110

 

$

98

 

$

216

 

$

208

 

$

(11

)

(10

)%

$

(8

)

(4

)%

$

(12

)

(11

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

1,760

 

$

1,731

 

$

1,753

 

$

1,751

 

$

1,794

 

$

1,760

 

$

1,794

 

$

34

 

2

%

$

34

 

2

%

$

43

 

2

%

Operating return on allocated equity (1)

 

15.9

%

16.9

%

16.6

%

16.7

%

16.7

%

15.9

%

16.7

%

0.8

%

 

 

0.8

%

 

 

 

 

 

Pretax operating margin

 

20.6

%

17.9

%

17.2

%

20.4

%

17.8

%

20.6

%

19.1

%

(2.8

)%

 

 

(1.5

)%

 

 

(2.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate & Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

7

 

$

5

 

$

 

$

(3

)

$

(4

)

$

15

 

$

(7

)

$

(11

)

#

 

$

(22

)

#

 

$

(1

)

(33

)%

Operating expenses

 

74

 

62

 

81

 

78

 

81

 

147

 

159

 

7

 

9

%

12

 

8

%

3

 

4

%

Pretax operating loss

 

$

(67

)

$

(57

)

$

(81

)

$

(81

)

$

(85

)

$

(132

)

$

(166

)

$

(18

)

(27

)%

$

(34

)

(26

)%

$

(4

)

(5

)%

 


(1)        Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity 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


 

 


 

 

 

Statistical Supplement Package

(unaudited)

 

Second Quarter 2013

 

 

Advice & Wealth Management Segment

 

11


 


 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment

Second Quarter 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

2012

 

2013

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

430

 

$

438

 

$

457

 

$

476

 

$

505

 

$

842

 

$

981

 

$

75

 

17

%

$

139

 

17

%

$

29

 

6

%

Distribution fees

 

454

 

452

 

502

 

503

 

535

 

925

 

1,038

 

81

 

18

%

113

 

12

%

32

 

6

%

Net investment income

 

64

 

63

 

42

 

32

 

31

 

128

 

63

 

(33

)

(52

)%

(65

)

(51

)%

(1

)

(3

)%

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

15

 

18

 

13

 

15

 

13

 

33

 

28

 

(2

)

(13

)%

(5

)

(15

)%

(2

)

(13

)%

Total revenues

 

963

 

971

 

1,014

 

1,026

 

1,084

 

1,928

 

2,110

 

121

 

13

%

182

 

9

%

58

 

6

%

Banking and deposit interest expense

 

10

 

10

 

9

 

8

 

8

 

21

 

16

 

(2

)

(20

)%

(5

)

(24

)%

 

 

Operating total net revenues

 

953

 

961

 

1,005

 

1,018

 

1,076

 

1,907

 

2,094

 

123

 

13

%

187

 

10

%

58

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

565

 

572

 

613

 

627

 

663

 

1,139

 

1,290

 

98

 

17

%

151

 

13

%

36

 

6

%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

277

 

270

 

273

 

260

 

261

 

563

 

521

 

(16

)

(6

)%

(42

)

(7

)%

1

 

 

Operating expenses

 

842

 

842

 

886

 

887

 

924

 

1,702

 

1,811

 

82

 

10

%

109

 

6

%

37

 

4

%

Pretax operating earnings

 

$

111

 

$

119

 

$

119

 

$

131

 

$

152

 

$

205

 

$

283

 

$

41

 

37

%

$

78

 

38

%

$

21

 

16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

11.6

%

12.4

%

11.8

%

12.9

%

14.1

%

10.7

%

13.5

%

2.5

%

 

 

2.8

%

 

 

1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

814

 

$

772

 

$

444

 

$

450

 

$

450

 

$

814

 

$

450

 

$

(364

)

(45

)%

$

(364

)

(45

)%

$

 

 

Operating return on allocated equity (1)

 

36.7

%

36.5

%

44.9

%

53.7

%

66.7

%

36.7

%

66.7

%

30.0

%

 

 

30.0

%

 

 

13.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

On-balance sheet deposits

 

$

9,678

 

$

9,652

 

$

6,540

 

$

6,004

 

$

6,596

 

$

9,678

 

$

6,596

 

$

(3,082

)

(32

)%

$

(3,082

)

(32

)%

$

592

 

10

%

 


(1)             Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.

 

12


 


 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment

Second Quarter 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

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

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

2012

 

2013

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates and Banking - Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

27

 

$

24

 

$

8

 

$

9

 

$

9

 

$

52

 

$

18

 

$

(18

)

(67

)%

$

(34

)

(65

)%

$

 

 

Allocated equity

 

$

568

 

$

528

 

$

203

 

$

210

 

$

211

 

$

568

 

$

211

 

$

(357

)

(63

)%

$

(357

)

(63

)%

$

1

 

 

Operating return on allocated equity (1)

 

14.7

%

13.0

%

12.5

%

11.6

%

10.8

%

14.7

%

10.8

%

(3.9

)%

 

 

(3.9

)%

 

 

(0.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth Management & Distribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

84

 

$

95

 

$

111

 

$

122

 

$

143

 

$

153

 

$

265

 

$

59

 

70

%

$

112

 

73

%

$

21

 

17

%

Allocated equity

 

$

246

 

$

244

 

$

241

 

$

240

 

$

239

 

$

246

 

$

239

 

$

(7

)

(3

)%

$

(7

)

(3

)%

$

(1

)

 

Operating return on allocated equity (1)

 

84.9

%

88.3

%

108.3

%

125.0

%

146.2

%

84.9

%

146.2

%

61.3

%

 

 

61.3

%

 

 

21.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded financial plan net cash sales

 

$

56

 

$

49

 

$

63

 

$

58

 

$

61

 

$

111

 

$

119

 

$

5

 

9

%

$

8

 

7

%

$

3

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Advisors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee advisors

 

2,311

 

2,328

 

2,318

 

2,303

 

2,289

 

2,311

 

2,289

 

(22

)

(1

)%

(22

)

(1

)%

(14

)

(1

)%

Franchisee advisors

 

7,492

 

7,487

 

7,449

 

7,474

 

7,499

 

7,492

 

7,499

 

7

 

 

7

 

 

25

 

 

Total branded financial advisors

 

9,803

 

9,815

 

9,767

 

9,777

 

9,788

 

9,803

 

9,788

 

(15

)

 

(15

)

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

97

 

$

98

 

$

103

 

$

104

 

$

110

 

$

195

 

$

214

 

$

13

 

13

%

$

19

 

10

%

$

6

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisor Retention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee

 

92.2

%

91.5

%

90.8

%

91.2

%

91.4

%

92.2

%

91.4

%

(0.8

)%

 

 

(0.8

)%

 

 

0.2

%

 

 

Franchisee

 

94.3

%

93.8

%

93.8

%

94.3

%

94.3

%

94.3

%

94.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Client Assets (at period end)

 

$

330,847

 

$

344,857

 

$

352,751

 

$

371,916

 

$

373,100

 

$

330,847

 

$

373,100

 

$

42,253

 

13

%

$

42,253

 

13

%

$

1,184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Wrap Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

113,128

 

$

113,414

 

$

120,554

 

$

124,648

 

$

133,766

 

$

103,385

 

$

124,648

 

$

20,638

 

18

%

$

21,263

 

21

%

$

9,118

 

7

%

Net flows

 

2,634

 

2,062

 

2,062

 

4,073

 

3,115

 

5,521

 

7,188

 

481

 

18

%

1,667

 

30

%

(958

)

(24

)%

Market appreciation (depreciation) and other

 

(2,348

)

5,078

 

2,032

 

5,045

 

(967

)

4,508

 

4,078

 

1,381

 

59

%

(430

)

(10

)%

(6,012

)

#

 

Total wrap ending assets

 

$

113,414

 

$

120,554

 

$

124,648

 

$

133,766

 

$

135,914

 

$

113,414

 

$

135,914

 

$

22,500

 

20

%

$

22,500

 

20

%

$

2,148

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information - excluding historical former banking operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

953

 

$

961

 

$

1,005

 

$

1,018

 

$

1,076

 

$

1,907

 

$

2,094

 

$

123

 

13

%

$

187

 

10

%

$

58

 

6

%

Less: Operating total net revenues attributable to former banking operations

 

34

 

33

 

12

 

 

 

66

 

 

(34

)

#

 

(66

)

#

 

 

 

Operating total net revenues excluding former banking operations (3)

 

$

919

 

$

928

 

$

993

 

$

1,018

 

$

1,076

 

$

1,841

 

$

2,094

 

$

157

 

17

%

$

253

 

14

%

$

58

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

$

842

 

$

842

 

$

886

 

$

887

 

$

924

 

$

1,702

 

$

1,811

 

$

82

 

10

%

$

109

 

6

%

$

37

 

4

%

Less: Operating expenses attributable to former banking operations

 

16

 

17

 

12

 

 

 

33

 

 

(16

)

#

 

(33

)

#

 

 

 

Operating expenses excluding former banking operations (3)

 

$

826

 

$

825

 

$

874

 

$

887

 

$

924

 

$

1,669

 

$

1,811

 

$

98

 

12

%

$

142

 

9

%

$

37

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues excluding former banking operations (3)

 

$

919

 

$

928

 

$

993

 

$

1,018

 

$

1,076

 

$

1,841

 

$

2,094

 

$

157

 

17

%

$

253

 

14

%

$

58

 

6

%

Operating expenses excluding former banking operations (3)

 

826

 

825

 

874

 

887

 

924

 

1,669

 

1,811

 

98

 

12

%

142

 

9

%

37

 

4

%

Pretax operating earnings excluding former banking operations (3)

 

$

93

 

$

103

 

$

119

 

$

131

 

$

152

 

$

172

 

$

283

 

$

59

 

63

%

$

111

 

65

%

$

21

 

16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin excluding former banking operations (3)

 

10.1

%

11.1

%

12.0

%

12.9

%

14.1

%

9.3

%

13.5

%

4.0

%

 

 

4.2

%

 

 

1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity excluding equity attributable to former banking operations

 

$

404

 

$

420

 

$

438

 

$

450

 

$

450

 

$

404

 

$

450

 

$

46

 

11

%

$

46

 

11

%

$

 

 

Operating return on allocated equity excluding former banking operations (1)

 

59.3

%

59.7

%

70.0

%

77.7

%

87.7

%

59.3

%

87.7

%

28.4

%

 

 

28.4

%

 

 

10.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues per financial advisor excluding former banking operations (in thousands) (2)

 

$

94

 

$

95

 

$

102

 

$

104

 

$

110

 

$

189

 

$

214

 

$

16

 

17

%

$

25

 

13

%

$

6

 

6

%

 


(1)             Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.

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

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

 

# Variance of greater than 100%.

 

13


 


 

 

Statistical Supplement Package

(unaudited)

 

Second Quarter 2013

 

Asset Management Segment

 

14



 

Ameriprise Financial, Inc.

Asset Management Segment

Second Quarter 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

2012

 

2013

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

592

 

$

620

 

$

622

 

$

627

 

$

662

 

$

1,178

 

$

1,289

 

$

70

 

12

%

$

111

 

9

%

$

35

 

6

%

Distribution fees

 

111

 

109

 

111

 

114

 

116

 

222

 

230

 

5

 

5

%

8

 

4

%

2

 

2

%

Net investment income

 

2

 

5

 

7

 

4

 

41

 

7

 

45

 

39

 

#

 

38

 

#

 

37

 

#

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

3

 

(1

)

1

 

1

 

4

 

12

 

5

 

1

 

33

%

(7

)

(58

)%

3

 

#

 

Total revenues

 

708

 

733

 

741

 

746

 

823

 

1,419

 

1,569

 

115

 

16

%

150

 

11

%

77

 

10

%

Banking and deposit interest expense

 

1

 

 

1

 

 

1

 

1

 

1

 

 

 

 

 

1

 

 

Operating total net revenues

 

707

 

733

 

740

 

746

 

822

 

1,418

 

1,568

 

115

 

16

%

150

 

11

%

76

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

272

 

276

 

283

 

288

 

301

 

546

 

589

 

29

 

11

%

43

 

8

%

13

 

5

%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

5

 

4

 

4

 

4

 

4

 

8

 

8

 

(1

)

(20

)%

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

300

 

298

 

312

 

310

 

318

 

603

 

628

 

18

 

6

%

25

 

4

%

8

 

3

%

Operating expenses

 

577

 

578

 

599

 

602

 

623

 

1,157

 

1,225

 

46

 

8

%

68

 

6

%

21

 

3

%

Pretax operating earnings

 

$

130

 

$

155

 

$

141

 

$

144

 

$

199

 

$

261

 

$

343

 

$

69

 

53

%

$

82

 

31

%

$

55

 

38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

18.4

%

21.1

%

19.1

%

19.3

%

24.2

%

18.4

%

21.9

%

5.8

%

 

 

3.5

%

 

 

4.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

707

 

$

733

 

$

740

 

$

746

 

$

822

 

$

1,418

 

$

1,568

 

$

115

 

16

%

$

150

 

11

%

$

76

 

10

%

Distribution pass thru revenues

 

(203

)

(203

)

(209

)

(214

)

(225

)

(410

)

(439

)

(22

)

(11

)%

(29

)

(7

)%

(11

)

(5

)%

Subadvisory and other pass thru revenues

 

(95

)

(105

)

(103

)

(98

)

(136

)

(191

)

(234

)

(41

)

(43

)%

(43

)

(23

)%

(38

)

(39

)%

Adjusted operating revenues (1)

 

$

409

 

$

425

 

$

428

 

$

434

 

$

461

 

$

817

 

$

895

 

$

52

 

13

%

$

78

 

10

%

$

27

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

130

 

$

155

 

$

141

 

$

144

 

$

199

 

$

261

 

$

343

 

$

69

 

53

%

$

82

 

31

%

$

55

 

38

%

Operating net investment income

 

(2

)

(5

)

(7

)

(4

)

(41

)

(7

)

(45

)

(39

)

#

 

(38

)

#

 

(37

)

#

 

Amortization of intangibles

 

10

 

10

 

10

 

10

 

9

 

20

 

19

 

(1

)

(10

)%

(1

)

(5

)%

(1

)

(10

)%

Adjusted operating earnings (1)

 

$

138

 

$

160

 

$

144

 

$

150

 

$

167

 

$

274

 

$

317

 

$

29

 

21

%

$

43

 

16

%

$

17

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net pretax operating margin (1)(2)

 

33.7

%

37.6

%

33.6

%

34.6

%

36.2

%

33.5

%

35.4

%

2.5

%

 

 

1.9

%

 

 

1.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

1,964

 

$

1,942

 

$

1,929

 

$

1,908

 

$

1,903

 

$

1,964

 

$

1,903

 

$

(61

)

(3

)%

$

(61

)

(3

)%

$

(5

)

 

Operating return on allocated equity (3)

 

18.3

%

19.6

%

20.9

%

21.5

%

24.8

%

18.3

%

24.8

%

6.5

%

 

 

6.5

%

 

 

3.3

%

 

 

 


(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 equity 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

Second Quarter 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

2012

 

2013

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Managed Asset Net Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Columbia managed asset net flows

 

$

(5,401

)

$

(3,498

)

$

(4,553

)

$

(5,065

)

$

(2,519

)

$

(10,523

)

$

(7,584

)

$

2,882

 

53

%

$

2,939

 

28

%

$

2,546

 

50

%

Threadneedle managed asset net flows (1)

 

(2,436

)

(165

)

439

 

(988

)

743

 

(2,176

)

(245

)

3,179

 

#

 

1,931

 

89

%

1,731

 

#

 

Sub-advised eliminations (1)

 

1,189

 

188

 

169

 

311

 

(326

)

1,449

 

(15

)

(1,515

)

#

 

(1,464

)

#

 

(637

)

#

 

Total managed asset net flows

 

$

(6,648

)

$

(3,475

)

$

(3,945

)

$

(5,742

)

$

(2,102

)

$

(11,250

)

$

(7,844

)

$

4,546

 

68

%

$

3,406

 

30

%

$

3,640

 

63

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Managed Assets Reconciliations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Columbia managed assets

 

$

331,934

 

$

339,943

 

$

330,419

 

$

341,327

 

$

335,194

 

$

331,934

 

$

335,194

 

$

3,260

 

1

%

$

3,260

 

1

%

$

(6,133

)

(2

)%

Threadneedle managed assets

 

116,630

 

123,705

 

127,752

 

127,674

 

126,976

 

116,630

 

126,976

 

10,346

 

9

%

10,346

 

9

%

(698

)

(1

)%

Sub-advised eliminations

 

(2,760

)

(2,792

)

(2,730

)

(2,514

)

(2,804

)

(2,760

)

(2,804

)

(44

)

(2

)%

(44

)

(2

)%

(290

)

(12

)%

Total managed assets

 

$

445,804

 

$

460,856

 

$

455,441

 

$

466,487

 

$

459,366

 

$

445,804

 

$

459,366

 

$

13,562

 

3

%

$

13,562

 

3

%

$

(7,121

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Managed Assets by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

$

213,448

 

$

224,136

 

$

224,078

 

$

238,096

 

$

238,531

 

$

213,448

 

$

238,531

 

$

25,083

 

12

%

$

25,083

 

12

%

$

435

 

 

Fixed income

 

204,340

 

209,742

 

205,210

 

203,357

 

195,680

 

204,340

 

195,680

 

(8,660

)

(4

)%

(8,660

)

(4

)%

(7,677

)

(4

)%

Money market

 

6,871

 

6,766

 

6,480

 

6,022

 

6,100

 

6,871

 

6,100

 

(771

)

(11

)%

(771

)

(11

)%

78

 

1

%

Alternative

 

8,817

 

7,365

 

6,703

 

6,627

 

6,312

 

8,817

 

6,312

 

(2,505

)

(28

)%

(2,505

)

(28

)%

(315

)

(5

)%

Hybrid and other

 

12,328

 

12,847

 

12,970

 

12,385

 

12,743

 

12,328

 

12,743

 

415

 

3

%

415

 

3

%

358

 

3

%

Total managed assets by type

 

$

445,804

 

$

460,856

 

$

455,441

 

$

466,487

 

$

459,366

 

$

445,804

 

$

459,366

 

$

13,562

 

3

%

$

13,562

 

3

%

$

(7,121

)

(2

)%

 


(1)             Threadneedle net flows in Q2 2012 include $1.2 billion of outflows primarily due to a change in subadvisory relationship between Threadneedle and Columbia.  These outflows are eliminated at the segment level.

 

# Variance of greater than 100%.

 

16



 

Ameriprise Financial, Inc.

Asset Management Segment - Columbia

Second Quarter 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

2012

 

2013

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Columbia Managed Assets Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

221,429

 

$

211,376

 

$

218,839

 

$

216,264

 

$

227,476

 

$

204,843

 

$

216,264

 

$

6,047

 

3

%

$

11,421

 

6

%

$

11,212

 

5

%

Mutual fund inflows

 

9,158

 

8,446

 

9,885

 

10,338

 

9,491

 

19,875

 

19,829

 

333

 

4

%

(46

)

 

(847

)

(8

)%

Mutual fund outflows

 

(14,821

)

(10,204

)

(14,236

)

(12,518

)

(13,305

)

(29,088

)

(25,823

)

1,516

 

10

%

3,265

 

11

%

(787

)

(6

)%

Net VP/VIT fund flows

 

(33

)

(160

)

(113

)

(165

)

(164

)

246

 

(329

)

(131

)

#

 

(575

)

#

 

1

 

1

%

Net new flows

 

(5,696

)

(1,918

)

(4,464

)

(2,345

)

(3,978

)

(8,967

)

(6,323

)

1,718

 

30

%

2,644

 

29

%

(1,633

)

(70

)%

Reinvested dividends

 

1,986

 

474

 

3,178

 

509

 

2,410

 

2,328

 

2,919

 

424

 

21

%

591

 

25

%

1,901

 

#

 

Net flows

 

(3,710

)

(1,444

)

(1,286

)

(1,836

)

(1,568

)

(6,639

)

(3,404

)

2,142

 

58

%

3,235

 

49

%

268

 

15

%

Distributions

 

(2,297

)

(642

)

(3,991

)

(660

)

(2,747

)

(2,831

)

(3,407

)

(450

)

(20

)%

(576

)

(20

)%

(2,087

)

#

 

Market appreciation (depreciation) and other (1)

 

(4,046

)

9,549

 

2,702

 

13,708

 

94

 

16,003

 

13,802

 

4,140

 

#

 

(2,201

)

(14

)%

(13,614

)

(99

)%

Total ending assets

 

211,376

 

218,839

 

216,264

 

227,476

 

223,255

 

211,376

 

223,255

 

11,879

 

6

%

11,879

 

6

%

(4,221

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of total retail assets sub-advised

 

20.5

%

20.5

%

21.8

%

21.7

%

20.9

%

20.5

%

20.9

%

0.4

%

 

 

0.4

%

 

 

(0.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

75,024

 

72,753

 

74,474

 

72,417

 

71,935

 

73,270

 

72,417

 

(3,089

)

(4

)%

(853

)

(1

)%

(482

)

(1

)%

Inflows

 

3,720

 

4,366

 

5,256

 

4,893

 

5,045

 

7,896

 

9,938

 

1,325

 

36

%

2,042

 

26

%

152

 

3

%

Outflows

 

(5,114

)

(4,911

)

(7,883

)

(8,039

)

(5,674

)

(11,177

)

(13,713

)

(560

)

(11

)%

(2,536

)

(23

)%

2,365

 

29

%

Net flows

 

(1,394

)

(545

)

(2,627

)

(3,146

)

(629

)

(3,281

)

(3,775

)

765

 

55

%

(494

)

(15

)%

2,517

 

80

%

Market appreciation (depreciation) and other

 

(877

)

2,266

 

570

 

2,664

 

(254

)

2,764

 

2,410

 

623

 

71

%

(354

)

(13

)%

(2,918

)

#

 

Total ending assets

 

72,753

 

74,474

 

72,417

 

71,935

 

71,052

 

72,753

 

71,052

 

(1,701

)

(2

)%

(1,701

)

(2

)%

(883

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

8,253

 

7,782

 

6,354

 

5,684

 

5,654

 

8,124

 

5,684

 

(2,599

)

(31

)%

(2,440

)

(30

)%

(30

)

(1

)%

Inflows

 

165

 

415

 

29

 

415

 

502

 

261

 

917

 

337

 

#

 

656

 

#

 

87

 

21

%

Outflows

 

(462

)

(1,924

)

(669

)

(498

)

(824

)

(864

)

(1,322

)

(362

)

(78

)%

(458

)

(53

)%

(326

)

(65

)%

Net flows

 

(297

)

(1,509

)

(640

)

(83

)

(322

)

(603

)

(405

)

(25

)

(8

)%

198

 

33

%

(239

)

#

 

Market appreciation (depreciation) and other

 

(174

)

81

 

(30

)

53

 

128

 

261

 

181

 

302

 

#

 

(80

)

(31

)%

75

 

#

 

Total ending assets

 

7,782

 

6,354

 

5,684

 

5,654

 

5,460

 

7,782

 

5,460

 

(2,322

)

(30

)%

(2,322

)

(30

)%

(194

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliated General Account Assets

 

40,113

 

40,359

 

36,136

 

36,262

 

35,427

 

40,113

 

35,427

 

(4,686

)

(12

)%

(4,686

)

(12

)%

(835

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and Eliminations

 

(90

)

(83

)

(82

)

 

 

(90

)

 

90

 

#

 

90

 

#

 

 

 

Total Columbia managed assets

 

$

331,934

 

$

339,943

 

$

330,419

 

$

341,327

 

$

335,194

 

$

331,934

 

$

335,194

 

$

3,260

 

1

%

$

3,260

 

1

%

$

(6,133

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Columbia net flows

 

$

(5,401

)

$

(3,498

)

$

(4,553

)

$

(5,065

)

$

(2,519

)

$

(10,523

)

$

(7,584

)

$

2,882

 

53

%

$

2,939

 

28

%

$

2,546

 

50

%

 


(1)             Included in Market appreciation (depreciation) and other for retail funds in the 2nd quarter of 2012 are $3B due to the transfer of Active Diversified Portfolio assets from non-proprietary to proprietary funds.

 

# Variance of greater than 100%.

 

17



 

Ameriprise Financial, Inc.

Asset Management Segment - Threadneedle

Second Quarter 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

2012

 

2013

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Threadneedle Managed Assets Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

36,345

 

$

33,329

 

$

36,923

 

$

39,086

 

$

41,376

 

$

31,809

 

$

39,086

 

$

5,031

 

14

%

$

7,277

 

23

%

$

2,290

 

6

%

Mutual fund inflows

 

3,324

 

4,148

 

4,046

 

5,359

 

5,647

 

7,840

 

11,006

 

2,323

 

70

%

3,166

 

40

%

288

 

5

%

Mutual fund outflows (1)

 

(4,589

)

(2,800

)

(3,023

)

(3,998

)

(4,728

)

(7,988

)

(8,726

)

(139

)

(3

)%

(738

)

(9

)%

(730

)

(18

)%

Net new flows

 

(1,265

)

1,348

 

1,023

 

1,361

 

919

 

(148

)

2,280

 

2,184

 

#

 

2,428

 

#

 

(442

)

(32

)%

Reinvested dividends

 

51

 

4

 

50

 

33

 

30

 

65

 

63

 

(21

)

(41

)%

(2

)

(3

)%

(3

)

(9

)%

Net flows

 

(1,214

)

1,352

 

1,073

 

1,394

 

949

 

(83

)

2,343

 

2,163

 

#

 

2,426

 

#

 

(445

)

(32

)%

Distributions

 

(156

)

(67

)

(181

)

(86

)

(142

)

(230

)

(228

)

14

 

9

%

2

 

1

%

(56

)

(65

)%

Market appreciation (depreciation)

 

(1,233

)

1,172

 

880

 

3,499

 

(710

)

1,154

 

2,789

 

523

 

42

%

1,635

 

#

 

(4,209

)

#

 

Foreign currency translation (2)

 

(610

)

969

 

203

 

(2,611

)

29

 

423

 

(2,582

)

639

 

#

 

(3,005

)

#

 

2,640

 

#

 

Other

 

197

 

168

 

188

 

94

 

304

 

256

 

398

 

107

 

54

%

142

 

55

%

210

 

#

 

Total ending assets

 

33,329

 

36,923

 

39,086

 

41,376

 

41,806

 

33,329

 

41,806

 

8,477

 

25

%

8,477

 

25

%

430

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

85,935

 

82,266

 

85,771

 

87,647

 

85,325

 

80,617

 

87,647

 

(610

)

(1

)%

7,030

 

9

%

(2,322

)

(3

)%

Inflows

 

1,854

 

1,941

 

2,557

 

1,263

 

2,469

 

4,632

 

3,732

 

615

 

33

%

(900

)

(19

)%

1,206

 

95

%

Outflows

 

(3,047

)

(3,404

)

(3,188

)

(3,591

)

(2,626

)

(6,589

)

(6,217

)

421

 

14

%

372

 

6

%

965

 

27

%

Net flows

 

(1,193

)

(1,463

)

(631

)

(2,328

)

(157

)

(1,957

)

(2,485

)

1,036

 

87

%

(528

)

(27

)%

2,171

 

93

%

Market appreciation (depreciation)

 

(1,603

)

1,951

 

1,416

 

5,212

 

(1,772

)

1,512

 

3,440

 

(169

)

(11

)%

1,928

 

#

 

(6,984

)

#

 

Foreign currency translation (2)

 

(1,615

)

2,446

 

452

 

(5,753

)

70

 

822

 

(5,683

)

1,685

 

#

 

(6,505

)

#

 

5,823

 

#

 

Other

 

742

 

571

 

639

 

547

 

852

 

1,272

 

1,399

 

110

 

15

%

127

 

10

%

305

 

56

%

Total ending assets

 

82,266

 

85,771

 

87,647

 

85,325

 

84,318

 

82,266

 

84,318

 

2,052

 

2

%

2,052

 

2

%

(1,007

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

1,060

 

1,035

 

1,011

 

1,019

 

973

 

1,147

 

1,019

 

(87

)

(8

)%

(128

)

(11

)%

(46

)

(5

)%

Inflows

 

 

67

 

26

 

 

 

 

 

 

 

 

 

 

 

Outflows

 

(29

)

(121

)

(29

)

(54

)

(49

)

(136

)

(103

)

(20

)

(69

)%

33

 

24

%

5

 

9

%

Net flows

 

(29

)

(54

)

(3

)

(54

)

(49

)

(136

)

(103

)

(20

)

(69

)%

33

 

24

%

5

 

9

%

Market appreciation (depreciation)

 

3

 

(12

)

(13

)

48

 

(94

)

(24

)

(46

)

(97

)

#

 

(22

)

(92

)%

(142

)

#

 

Foreign currency translation (2)

 

(19

)

29

 

6

 

(64

)

2

 

14

 

(62

)

21

 

#

 

(76

)

#

 

66

 

#

 

Other

 

20

 

13

 

18

 

24

 

20

 

34

 

44

 

 

 

10

 

29

%

(4

)

(17

)%

Total ending assets

 

1,035

 

1,011

 

1,019

 

973

 

852

 

1,035

 

852

 

(183

)

(18

)%

(183

)

(18

)%

(121

)

(12

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Threadneedle managed assets

 

$

116,630

 

$

123,705

 

$

127,752

 

$

127,674

 

$

126,976

 

$

116,630

 

$

126,976

 

$

10,346

 

9

%

$

10,346

 

9

%

$

(698

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Threadneedle net flows

 

$

(2,436

)

$

(165

)

$

439

 

$

(988

)

$

743

 

$

(2,176

)

$

(245

)

$

3,179

 

#

 

$

1,931

 

89

%

$

1,731

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Threadneedle net flows excluding legacy insurance mandates

 

$

(1,763

)

$

886

 

$

1,669

 

$

1,189

 

$

1,412

 

$

(668

)

$

2,601

 

$

3,175

 

#

 

$

3,269

 

#

 

$

223

 

19

%

 


(1)             Retail fund outflows in Q2 2012 include $1.2 billion primarily due to a change in subadvisory relationship between Threadneedle and Columbia.  These outflows are eliminated at the segment level.

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

 

# Variance of greater than 100%.

 

18



 

Ameriprise Financial, Inc.

Asset Management Segment - Columbia

Second Quarter 2013

 

Mutual Fund Rankings in top 2 Lipper Quartiles

 

 

 

 

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

Domestic Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

43

%

54

%

67

%

52

%

68

%

 

 

3 year

 

56

%

47

%

53

%

51

%

68

%

 

 

5 year

 

60

%

57

%

54

%

51

%

64

%

Asset weighted

 

1 year

 

62

%

64

%

71

%

56

%

47

%

 

 

3 year

 

76

%

69

%

72

%

69

%

79

%

 

 

5 year

 

75

%

72

%

73

%

71

%

73

%

International Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

63

%

67

%

55

%

39

%

50

%

 

 

3 year

 

41

%

50

%

44

%

56

%

56

%

 

 

5 year

 

57

%

64

%

60

%

57

%

53

%

Asset weighted

 

1 year

 

84

%

80

%

20

%

20

%

23

%

 

 

3 year

 

15

%

65

%

19

%

25

%

26

%

 

 

5 year

 

73

%

80

%

80

%

81

%

79

%

Taxable Fixed Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

75

%

70

%

67

%

63

%

67

%

 

 

3 year

 

45

%

65

%

75

%

78

%

71

%

 

 

5 year

 

74

%

74

%

79

%

82

%

75

%

Asset weighted

 

1 year

 

82

%

72

%

72

%

70

%

72

%

 

 

3 year

 

53

%

80

%

87

%

83

%

83

%

 

 

5 year

 

81

%

81

%

83

%

98

%

93

%

Tax Exempt Fixed Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

90

%

85

%

90

%

95

%

94

%

 

 

3 year

 

95

%

95

%

100

%

100

%

100

%

 

 

5 year

 

90

%

95

%

100

%

100

%

89

%

Asset weighted

 

1 year

 

83

%

77

%

93

%

93

%

98

%

 

 

3 year

 

85

%

86

%

100

%

100

%

100

%

 

 

5 year

 

98

%

99

%

100

%

100

%

98

%

Asset Allocation Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

91

%

40

%

60

%

54

%

54

%

 

 

3 year

 

71

%

85

%

85

%

64

%

70

%

 

 

5 year

 

52

%

85

%

85

%

82

%

80

%

Asset weighted

 

1 year

 

92

%

43

%

81

%

62

%

63

%

 

 

3 year

 

90

%

91

%

91

%

84

%

84

%

 

 

5 year

 

90

%

91

%

91

%

94

%

88

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of funds with 4 or 5 Morningstar star ratings

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall

 

 

 

56

 

53

 

51

 

52

 

51

 

3 year

 

 

 

53

 

52

 

56

 

50

 

49

 

5 year

 

 

 

45

 

43

 

44

 

44

 

43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of funds with 4 or 5 Morningstar star ratings

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall

 

 

 

47

%

47

%

46

%

51

%

53

%

3 year

 

 

 

45

%

46

%

50

%

49

%

51

%

5 year

 

 

 

41

%

41

%

42

%

45

%

46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of assets with 4 or 5 Morningstar star ratings

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall

 

 

 

64

%

66

%

66

%

58

%

70

%

3 year

 

 

 

40

%

47

%

52

%

49

%

50

%

5 year

 

 

 

43

%

43

%

57

%

47

%

55

%

 

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

 

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

 

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

 

Aggregated data includes all Columbia branded mutual funds.

 

19



 

Ameriprise Financial, Inc.

Asset Management Segment - Threadneedle

Second Quarter 2013

 

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

 

 

 

 

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

65

%

59

%

75

%

71

%

65

%

 

 

3 year

 

85

%

78

%

80

%

78

%

78

%

 

 

5 year

 

80

%

83

%

84

%

84

%

81

%

Asset weighted

 

1 year

 

87

%

61

%

78

%

60

%

52

%

 

 

3 year

 

91

%

80

%

93

%

92

%

91

%

 

 

5 year

 

86

%

88

%

94

%

94

%

94

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

67

%

92

%

83

%

67

%

88

%

 

 

3 year

 

64

%

76

%

76

%

57

%

82

%

 

 

5 year

 

64

%

73

%

91

%

92

%

92

%

Asset weighted

 

1 year

 

39

%

99

%

60

%

29

%

91

%

 

 

3 year

 

41

%

52

%

59

%

37

%

76

%

 

 

5 year

 

68

%

75

%

98

%

98

%

98

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocation (Managed) Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

0

%

67

%

67

%

83

%

83

%

 

 

3 year

 

67

%

67

%

67

%

67

%

67

%

 

 

5 year

 

100

%

83

%

83

%

83

%

83

%

Asset weighted

 

1 year

 

0

%

77

%

77

%

86

%

92

%

 

 

3 year

 

78

%

77

%

77

%

78

%

78

%

 

 

5 year

 

100

%

86

%

86

%

86

%

86

%

 

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

 

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

 

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

 

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

 

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

 

20



 

 

Statistical Supplement Package

(unaudited)

 

Second Quarter 2013

 

 

Annuities Segment

 

21



 

Ameriprise Financial, Inc.

Annuities Segment

Second Quarter 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

2012

 

2013

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

159

 

$

163

 

$

166

 

$

170

 

$

174

 

$

319

 

$

344

 

$

15

 

9

%

$

25

 

8

%

$

4

 

2

%

Distribution fees

 

78

 

82

 

81

 

81

 

85

 

154

 

166

 

7

 

9

%

12

 

8

%

4

 

5

%

Net investment income

 

287

 

276

 

276

 

270

 

266

 

580

 

536

 

(21

)

(7

)%

(44

)

(8

)%

(4

)

(1

)%

Premiums

 

28

 

30

 

28

 

28

 

26

 

60

 

54

 

(2

)

(7

)%

(6

)

(10

)%

(2

)

(7

)%

Other revenues

 

76

 

81

 

85

 

81

 

90

 

143

 

171

 

14

 

18

%

28

 

20

%

9

 

11

%

Total revenues

 

628

 

632

 

636

 

630

 

641

 

1,256

 

1,271

 

13

 

2

%

15

 

1

%

11

 

2

%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

628

 

632

 

636

 

630

 

641

 

1,256

 

1,271

 

13

 

2

%

15

 

1

%

11

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

97

 

98

 

100

 

101

 

109

 

197

 

210

 

12

 

12

%

13

 

7

%

8

 

8

%

Interest credited to fixed accounts

 

174

 

173

 

170

 

164

 

162

 

345

 

326

 

(12

)

(7

)%

(19

)

(6

)%

(2

)

(1

)%

Benefits, claims, losses and settlement expenses

 

121

 

143

 

77

 

116

 

130

 

199

 

246

 

9

 

7

%

47

 

24

%

14

 

12

%

Amortization of deferred acquisition costs

 

57

 

72

 

66

 

41

 

66

 

91

 

107

 

9

 

16

%

16

 

18

%

25

 

61

%

Interest and debt expense

 

 

 

1

 

 

 

1

 

 

 

 

(1

)

#

 

 

 

General and administrative expense

 

63

 

55

 

51

 

52

 

50

 

118

 

102

 

(13

)

(21

)%

(16

)

(14

)%

(2

)

(4

)%

Operating expenses

 

512

 

541

 

465

 

474

 

517

 

951

 

991

 

5

 

1

%

40

 

4

%

43

 

9

%

Pretax operating earnings

 

$

116

 

$

91

 

$

171

 

$

156

 

$

124

 

$

305

 

$

280

 

$

8

 

7

%

$

(25

)

(8

)%

$

(32

)

(21

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

18.5

%

14.4

%

26.9

%

24.8

%

19.3

%

24.3

%

22.0

%

0.8

%

 

 

(2.3

)%

 

 

(5.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

2,673

 

$

2,425

 

$

2,394

 

$

2,266

 

$

2,415

 

$

2,673

 

$

2,415

 

$

(258

)

(10

)%

$

(258

)

(10

)%

$

149

 

7

%

Operating return on allocated equity (1)

 

16.7

%

15.4

%

16.6

%

16.2

%

16.9

%

16.7

%

16.9

%

0.2

%

 

 

0.2

%

 

 

0.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market impact on variable annuity guaranteed living benefits (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk margin and nonperformance spread impact

 

$

99

 

$

(32

)

$

(43

)

$

(44

)

$

(23

)

$

39

 

$

(67

)

$

(122

)

#

 

$

(106

)

#

 

$

21

 

48

%

Other

 

(115

)

(59

)

(2

)

42

 

(20

)

(168

)

22

 

95

 

83

%

190

 

#

 

(62

)

#

 

Total VA guaranteed living benefit impact excluded from operating earnings

 

$

(16

)

$

(91

)

$

(45

)

$

(2

)

$

(43

)

$

(129

)

$

(45

)

$

(27

)

#

 

$

84

 

65

%

$

(41

)

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total annuity net flows

 

$

(324

)

$

(396

)

$

(517

)

$

(462

)

$

(410

)

$

(425

)

$

(872

)

$

(86

)

(27

)%

$

(447

)

#

 

$

52

 

11

%

 


(1)

Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.

(2)

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

 

# Variance of greater than 100%.

 

22



 

Ameriprise Financial, Inc.

Annuities Segment

Second Quarter 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

2012

 

2013

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

83

 

$

31

 

$

129

 

$

109

 

$

82

 

$

216

 

$

191

 

$

(1

)

(1

)%

$

(25

)

(12

)%

$

(27

)

(25

)%

Allocated equity

 

$

1,032

 

$

806

 

$

809

 

$

726

 

$

949

 

$

1,032

 

$

949

 

$

(83

)

(8

)%

$

(83

)

(8

)%

$

223

 

31

%

Operating return on allocated equity (1)

 

31.8

%

28.6

%

31.6

%

31.7

%

31.1

%

31.8

%

31.1

%

(0.7

)%

 

 

(0.7

)%

 

 

(0.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Annuities (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

33

 

$

60

 

$

42

 

$

47

 

$

42

 

$

89

 

$

89

 

$

9

 

27

%

$

 

 

$

(5

)

(11

)%

Allocated equity

 

$

1,641

 

$

1,619

 

$

1,585

 

$

1,540

 

$

1,466

 

$

1,641

 

$

1,466

 

$

(175

)

(11

)%

$

(175

)

(11

)%

$

(74

)

(5

)%

Operating return on allocated equity (1)

 

8.9

%

8.3

%

8.5

%

8.3

%

9.1

%

8.9

%

9.1

%

0.2

%

 

 

0.2

%

 

 

0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

66,960

 

$

65,197

 

$

67,515

 

$

68,054

 

$

70,882

 

$

62,343

 

$

68,054

 

$

3,922

 

6

%

$

5,711

 

9

%

$

2,828

 

4

%

Deposits

 

1,178

 

1,126

 

1,260

 

1,236

 

1,416

 

2,771

 

2,652

 

238

 

20

%

(119

)

(4

)%

180

 

15

%

Withdrawals and terminations

 

(1,325

)

(1,308

)

(1,474

)

(1,429

)

(1,551

)

(2,832

)

(2,980

)

(226

)

(17

)%

(148

)

(5

)%

(122

)

(9

)%

Net flows

 

(147

)

(182

)

(214

)

(193

)

(135

)

(61

)

(328

)

12

 

8

%

(267

)

#

 

58

 

30

%

Investment performance and interest credited

 

(1,611

)

2,504

 

753

 

3,021

 

(481

)

2,920

 

2,540

 

1,130

 

70

%

(380

)

(13

)%

(3,502

)

#

 

Other

 

(5

)

(4

)

 

 

 

(5

)

 

5

 

#

 

5

 

#

 

 

 

Total ending balance - contract accumulation values

 

$

65,197

 

$

67,515

 

$

68,054

 

$

70,882

 

$

70,266

 

$

65,197

 

$

70,266

 

$

5,069

 

8

%

$

5,069

 

8

%

$

(616

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable annuities fixed sub-accounts

 

$

4,822

 

$

4,833

 

$

4,833

 

$

4,824

 

$

4,855

 

$

4,822

 

$

4,855

 

$

33

 

1

%

$

33

 

1

%

$

31

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Annuities Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

14,133

 

$

14,088

 

$

14,001

 

$

13,823

 

$

13,675

 

$

14,193

 

$

13,823

 

$

(458

)

(3

)%

$

(370

)

(3

)%

$

(148

)

(1

)%

Deposits

 

122

 

91

 

39

 

36

 

35

 

255

 

71

 

(87

)

(71

)%

(184

)

(72

)%

(1

)

(3

)%

Withdrawals and terminations

 

(299

)

(305

)

(342

)

(305

)

(310

)

(619

)

(615

)

(11

)

(4

)%

4

 

1

%

(5

)

(2

)%

Net flows

 

(177

)

(214

)

(303

)

(269

)

(275

)

(364

)

(544

)

(98

)

(55

)%

(180

)

(49

)%

(6

)

(2

)%

Policyholder interest credited

 

127

 

127

 

125

 

121

 

122

 

254

 

243

 

(5

)

(4

)%

(11

)

(4

)%

1

 

1

%

Other

 

5

 

 

 

 

 

5

 

 

(5

)

#

 

(5

)

#

 

 

 

Total ending balance - contract accumulation values

 

$

14,088

 

$

14,001

 

$

13,823

 

$

13,675

 

$

13,522

 

$

14,088

 

$

13,522

 

$

(566

)

(4

)%

$

(566

)

(4

)%

$

(153

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized interest

 

$

1

 

$

1

 

$

1

 

$

1

 

$

 

$

2

 

$

1

 

$

(1

)

#

 

$

(1

)

(50

)%

$

(1

)

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payout Annuities Reserve Balance

 

$

2,150

 

$

2,151

 

$

2,151

 

$

2,145

 

$

2,135

 

$

2,150

 

$

2,135

 

$

(15

)

(1

)%

$

(15

)

(1

)%

$

(10

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Equivalent Spread - Fixed Annuities (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross rate of return on invested assets (4)

 

5.7

%

5.6

%

5.6

%

5.5

%

5.4

%

5.8

%

5.4

%

(0.3

)%

 

 

(0.4

)%

 

 

(0.1

)%

 

 

Crediting rate excluding capitalized interest

 

(3.6

)%

(3.6

)%

(3.6

)%

(3.6

)%

(3.6

)%

(3.6

)%

(3.6

)%

 

 

 

 

 

 

 

 

 

Tax equivalent margin spread

 

2.1

%

2.0

%

2.0

%

1.9

%

1.8

%

2.2

%

1.8

%

(0.3

)%

 

 

(0.4

)%

 

 

(0.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Variable Annuities DAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,549

 

$

1,533

 

$

1,507

 

$

1,508

 

$

1,532

 

$

1,491

 

$

1,508

 

$

(17

)

(1

)%

$

17

 

1

%

$

24

 

2

%

Capitalization

 

38

 

40

 

46

 

43

 

50

 

86

 

93

 

12

 

32

%

7

 

8

%

7

 

16

%

Amortization due to market impact on VA guaranteed living benefits

 

(5

)

26

 

12

 

(1

)

8

 

31

 

7

 

13

 

#

 

(24

)

(77

)%

9

 

 

#

Amortization per income statement

 

(47

)

(78

)

(57

)

(32

)

(58

)

(71

)

(90

)

(11

)

(23

)%

(19

)

(27

)%

(26

)

(81

)%

Other

 

(2

)

(14

)

 

14

 

18

 

(4

)

32

 

20

 

#

 

36

 

#

 

4

 

29

%

Total ending balance

 

$

1,533

 

$

1,507

 

$

1,508

 

$

1,532

 

$

1,550

 

$

1,533

 

$

1,550

 

$

17

 

1

%

$

17

 

1

%

$

18

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Annuities DAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

86

 

$

74

 

$

71

 

$

68

 

$

67

 

$

108

 

$

68

 

$

(19

)

(22

)%

$

(40

)

(37

)%

$

(1

)

(1

)%

Capitalization

 

3

 

2

 

 

1

 

 

6

 

1

 

(3

)

#

 

(5

)

(83

)%

(1

)

#

 

Amortization per income statement

 

(10

)

6

 

(9

)

(9

)

(8

)

(20

)

(17

)

2

 

20

%

3

 

15

%

1

 

11

%

Other

 

(5

)

(11

)

6

 

7

 

33

 

(20

)

40

 

38

 

#

 

60

 

#

 

26

 

#

 

Total ending balance

 

$

74

 

$

71

 

$

68

 

$

67

 

$

92

 

$

74

 

$

92

 

$

18

 

24

%

$

18

 

24

%

$

25

 

37

%

 


(1)

Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.

(2)

Includes payout annuities.

(3)

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

(4)

In the 2nd quarter of 2012 through the 2nd quarter of 2013, the Gross rates of return on invested assets were impacted by outstanding repurchase agreements. Without these positions, the Gross rates of return on invested assets would have been 5.5%, 5.4%, 5.4%, 5.3% and 5.2% respectively.

 

# Variance of greater than 100%.

 

23



 

 

 

Statistical Supplement Package

(unaudited)

 

Second Quarter 2013

 

 

Protection Segment

 

24


 


 

Ameriprise Financial, Inc.

Protection Segment

Second Quarter 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

2012

 

2013

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

13

 

$

14

 

$

14

 

$

14

 

$

14

 

$

27

 

$

28

 

$

1

 

8

%

$

1

 

4

%

$

 

 

Distribution fees

 

23

 

22

 

23

 

22

 

23

 

46

 

45

 

 

 

(1

)

(2

)%

1

 

5

%

Net investment income

 

106

 

110

 

108

 

111

 

112

 

212

 

223

 

6

 

6

%

11

 

5

%

1

 

1

%

Premiums

 

278

 

283

 

287

 

286

 

293

 

551

 

579

 

15

 

5

%

28

 

5

%

7

 

2

%

Other revenues

 

108

 

67

 

110

 

105

 

109

 

215

 

214

 

1

 

1

%

(1

)

 

4

 

4

%

Total revenues

 

528

 

496

 

542

 

538

 

551

 

1,051

 

1,089

 

23

 

4

%

38

 

4

%

13

 

2

%

Banking and deposit interest expense

 

 

 

 

 

 

1

 

 

 

 

(1

)

#

 

 

 

Operating total net revenues

 

528

 

496

 

542

 

538

 

551

 

1,050

 

1,089

 

23

 

4

%

39

 

4

%

13

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

18

 

16

 

18

 

16

 

20

 

33

 

36

 

2

 

11

%

3

 

9

%

4

 

25

%

Interest credited to fixed accounts

 

35

 

34

 

39

 

34

 

34

 

70

 

68

 

(1

)

(3

)%

(2

)

(3

)%

 

 

Benefits, claims, losses and settlement expenses

 

277

 

282

 

309

 

292

 

309

 

555

 

601

 

32

 

12

%

46

 

8

%

17

 

6

%

Amortization of deferred acquisition costs

 

32

 

17

 

31

 

29

 

31

 

62

 

60

 

(1

)

(3

)%

(2

)

(3

)%

2

 

7

%

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

57

 

58

 

52

 

57

 

59

 

114

 

116

 

2

 

4

%

2

 

2

%

2

 

4

%

Operating expenses

 

419

 

407

 

449

 

428

 

453

 

834

 

881

 

34

 

8

%

47

 

6

%

25

 

6

%

Pretax operating earnings

 

$

109

 

$

89

 

$

93

 

$

110

 

$

98

 

$

216

 

$

208

 

$

(11

)

(10

)%

$

(8

)

(4

)%

$

(12

)

(11

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

20.6

%

17.9

%

17.2

%

20.4

%

17.8

%

20.6

%

19.1

%

(2.8

)%

 

 

(1.5

)%

 

 

(2.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

1,760

 

$

1,731

 

$

1,753

 

$

1,751

 

$

1,794

 

$

1,760

 

$

1,794

 

$

34

 

2

%

$

34

 

2

%

$

43

 

2

%

Operating return on allocated equity (1)

 

15.9

%

16.9

%

16.6

%

16.7

%

16.7

%

15.9

%

16.7

%

0.8

%

 

 

0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market impact on indexed universal life benefits (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk margin and nonperformance spread impact

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

Other

 

 

 

 

 

(2

)

 

(2

)

(2

)

 

(2

)

 

(2

)

 

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

 

$

 

$

 

$

 

$

 

$

(2

)

$

 

$

(2

)

$

(2

)

 

$

(2

)

 

$

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long Term Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

2

 

$

(2

)

$

5

 

$

5

 

$

2

 

$

4

 

$

7

 

$

 

 

$

3

 

75

%

$

(3

)

(60

)%

Allocated equity

 

$

489

 

$

489

 

$

505

 

$

501

 

$

509

 

$

489

 

$

509

 

$

20

 

4

%

$

20

 

4

%

$

8

 

2

%

Operating return on allocated equity (1)

 

2.6

%

0.7

%

1.1

%

1.5

%

1.6

%

2.6

%

1.6

%

(1.0

)%

 

 

(1.0

)%

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Protection excluding Long Term Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

107

 

$

91

 

$

88

 

$

105

 

$

96

 

$

212

 

$

201

 

$

(11

)

(10

)%

$

(11

)

(5

)%

$

(9

)

(9

)%

Allocated equity

 

$

1,271

 

$

1,242

 

$

1,248

 

$

1,250

 

$

1,285

 

$

1,271

 

$

1,285

 

$

14

 

1

%

$

14

 

1

%

$

35

 

3

%

Operating return on allocated equity (1)

 

21.3

%

23.1

%

22.6

%

22.6

%

22.7

%

21.3

%

22.7

%

1.4

%

 

 

1.4

%

 

 

0.1

%

 

 

 


(1)             Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity 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

Second Quarter 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

2012

 

2013

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL (1)

 

$

60

 

$

68

 

$

79

 

$

64

 

$

81

 

$

116

 

$

145

 

$

21

 

35

%

$

29

 

25

%

$

17

 

27

%

Term and whole life

 

3

 

2

 

4

 

2

 

3

 

6

 

5

 

 

 

(1

)

(17

)%

1

 

50

%

Disability insurance

 

2

 

1

 

1

 

1

 

2

 

3

 

3

 

 

 

 

 

1

 

#

 

Auto and home

 

200

 

217

 

200

 

214

 

223

 

397

 

437

 

23

 

12

%

40

 

10

%

9

 

4

%

Total cash sales

 

$

265

 

$

288

 

$

284

 

$

281

 

$

309

 

$

522

 

$

590

 

$

44

 

17

%

$

68

 

13

%

$

28

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL Policyholder Account Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

9,740

 

$

9,502

 

$

9,760

 

$

9,859

 

$

10,202

 

$

9,216

 

$

9,859

 

$

462

 

5

%

$

643

 

7

%

$

343

 

3

%

Premiums and deposits

 

231

 

236

 

260

 

234

 

251

 

463

 

485

 

20

 

9

%

22

 

5

%

17

 

7

%

Investment performance and interest

 

(188

)

307

 

128

 

396

 

30

 

387

 

426

 

218

 

#

 

39

 

10

%

(366

)

(92

)%

Withdrawals and surrenders

 

(281

)

(285

)

(287

)

(287

)

(285

)

(565

)

(572

)

(4

)

(1

)%

(7

)

(1

)%

2

 

1

%

Other

 

 

 

(2

)

 

 

1

 

 

 

 

(1

)

#

 

 

 

Total ending balance

 

$

9,502

 

$

9,760

 

$

9,859

 

$

10,202

 

$

10,198

 

$

9,502

 

$

10,198

 

$

696

 

7

%

$

696

 

7

%

$

(4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums by Product

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term and whole life

 

$

13

 

$

12

 

$

12

 

$

13

 

$

12

 

$

25

 

$

25

 

$

(1

)

(8

)%

$

 

 

$

(1

)

(8

)%

Disability insurance

 

40

 

40

 

39

 

39

 

39

 

80

 

78

 

(1

)

(3

)%

(2

)

(3

)%

 

 

Long term care

 

29

 

29

 

30

 

28

 

28

 

57

 

56

 

(1

)

(3

)%

(1

)

(2

)%

 

 

Auto and home

 

192

 

198

 

202

 

202

 

210

 

381

 

412

 

18

 

9

%

31

 

8

%

8

 

4

%

Intercompany premiums

 

4

 

4

 

4

 

4

 

4

 

8

 

8

 

 

 

 

 

 

 

Total premiums by product

 

$

278

 

$

283

 

$

287

 

$

286

 

$

293

 

$

551

 

$

579

 

$

15

 

5

%

$

28

 

5

%

$

7

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto and Home Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy count (thousands)

 

725

 

742

 

756

 

773

 

795

 

725

 

795

 

70

 

10

%

70

 

10

%

22

 

3

%

Loss ratio

 

85.0

%

82.8

%

97.1

%

84.7

%

87.1

%

82.7

%

85.9

%

2.1

%

 

 

3.2

%

 

 

2.4

%

 

 

Expense ratio

 

15.0

%

14.8

%

16.0

%

15.4

%

15.3

%

15.3

%

15.4

%

0.3

%

 

 

0.1

%

 

 

(0.1

)%

 

 

Combined ratio

 

100.0

%

97.6

%

113.1

%

100.1

%

102.4

%

98.0

%

101.3

%

2.4

%

 

 

3.3

%

 

 

2.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DAC Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life and Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

809

 

$

797

 

$

793

 

$

797

 

$

810

 

$

814

 

$

797

 

$

1

 

 

$

(17

)

(2

)%

$

13

 

2

%

Capitalization

 

18

 

17

 

22

 

18

 

22

 

34

 

40

 

4

 

22

%

6

 

18

%

4

 

22

%

Amortization due to market impact on indexed universal life benefits

 

 

 

 

 

1

 

 

1

 

1

 

 

1

 

 

1

 

 

Amortization per income statement

 

(21

)

(6

)

(19

)

(17

)

(18

)

(40

)

(35

)

3

 

14

%

5

 

13

%

(1

)

(6

)%

Other

 

(9

)

(15

)

1

 

12

 

23

 

(11

)

35

 

32

 

#

 

46

 

#

 

11

 

92

%

Total ending balance

 

$

797

 

$

793

 

$

797

 

$

810

 

$

838

 

$

797

 

$

838

 

$

41

 

5

%

$

41

 

5

%

$

28

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life Insurance in Force

 

$

190,746

 

$

190,862

 

$

191,447

 

$

191,882

 

$

192,759

 

$

190,746

 

$

192,759

 

$

2,013

 

1

%

$

2,013

 

1

%

$

877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Amount at Risk

 

$

43,874

 

$

43,077

 

$

42,758

 

$

41,990

 

$

41,627

 

$

43,874

 

$

41,627

 

$

(2,247

)

(5

)%

$

(2,247

)

(5

)%

$

(363

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Policyholder Reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL

 

$

8,577

 

$

8,840

 

$

8,950

 

$

9,306

 

$

9,318

 

$

8,577

 

$

9,318

 

$

741

 

9

%

$

741

 

9

%

$

12

 

 

Term and whole life

 

235

 

233

 

231

 

228

 

226

 

235

 

226

 

(9

)

(4

)%

(9

)

(4

)%

(2

)

(1

)%

Disability insurance

 

526

 

527

 

524

 

527

 

532

 

526

 

532

 

6

 

1

%

6

 

1

%

5

 

1

%

Long term care and other

 

2,557

 

2,581

 

2,594

 

2,605

 

2,649

 

2,557

 

2,649

 

92

 

4

%

92

 

4

%

44

 

2

%

Auto and home loss and LAE reserves

 

345

 

339

 

356

 

362

 

371

 

345

 

371

 

26

 

8

%

26

 

8

%

9

 

2

%

Total net policyholder reserves

 

$

12,240

 

$

12,520

 

$

12,655

 

$

13,028

 

$

13,096

 

$

12,240

 

$

13,096

 

$

856

 

7

%

$

856

 

7

%

$

68

 

1

%

 


(1)             Includes lump sum deposits.

 

# Variance of greater than 100%.

 

26


 


 

 

Statistical Supplement Package

(unaudited)

 

Second Quarter 2013

 

 

Corporate & Other Segment

 

27



 

Ameriprise Financial, Inc.

Corporate & Other Segment

Second Quarter 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

2012

 

2013

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

(1

)

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

Distribution fees

 

 

 

1

 

 

1

 

 

1

 

1

 

 

1

 

 

1

 

 

Net investment income

 

4

 

5

 

(4

)

(6

)

(5

)

8

 

(11

)

(9

)

#

 

(19

)

#

 

1

 

17

%

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

3

 

1

 

2

 

3

 

 

7

 

3

 

(3

)

#

 

(4

)

(57

)%

(3

)

#

 

Total revenues

 

7

 

5

 

(1

)

(3

)

(4

)

15

 

(7

)

(11

)

#

 

(22

)

#

 

(1

)

(33

)%

Banking and deposit interest expense

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

7

 

5

 

 

(3

)

(4

)

15

 

(7

)

(11

)

#

 

(22

)

#

 

(1

)

(33

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

1

 

 

 

1

 

 

 

1

 

 

(1

)

#

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

24

 

24

 

24

 

25

 

25

 

46

 

50

 

1

 

4

%

4

 

9

%

 

 

General and administrative expense

 

50

 

38

 

57

 

52

 

56

 

101

 

108

 

6

 

12

%

7

 

7

%

4

 

8

%

Operating expenses

 

74

 

62

 

81

 

78

 

81

 

147

 

159

 

7

 

9

%

12

 

8

%

3

 

4

%

Pretax operating loss

 

$

(67

)

$

(57

)

$

(81

)

$

(81

)

$

(85

)

$

(132

)

$

(166

)

$

(18

)

(27

)%

$

(34

)

(26

)%

$

(4

)

(5

)%

 


# Variance of greater than 100%.

 

 

28



 

Ameriprise Financial, Inc.

Eliminations (1)

Second Quarter 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 2Q

 

YTD Chg - 2Q

 

Seq Qtr Chg - 2Q

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

2012

 

2013

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

(32

)

$

(32

)

$

(31

)

$

(31

)

$

(32

)

$

(62

)

$

(63

)

$

 

 

$

(1

)

(2

)%

$

(1

)

(3

)%

Distribution fees

 

(270

)

(274

)

(291

)

(286

)

(312

)

(549

)

(598

)

(42

)

(16

)%

(49

)

(9

)%

(26

)

(9

)%

Net investment income

 

 

 

 

 

(1

)

 

(1

)

(1

)

 

(1

)

 

(1

)

 

Premiums

 

(4

)

(4

)

(4

)

(4

)

(4

)

(8

)

(8

)

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

(306

)

(310

)

(326

)

(321

)

(349

)

(619

)

(670

)

(43

)

(14

)%

(51

)

(8

)%

(28

)

(9

)%

Banking and deposit interest expense

 

(1

)

 

 

 

(1

)

(2

)

(1

)

 

 

1

 

50

%

(1

)

 

Operating total net revenues

 

(305

)

(310

)

(326

)

(321

)

(348

)

(617

)

(669

)

(43

)

(14

)%

(52

)

(8

)%

(27

)

(8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

(289

)

(295

)

(312

)

(307

)

(333

)

(586

)

(640

)

(44

)

(15

)%

(54

)

(9

)%

(26

)

(8

)%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

(16

)

(15

)

(14

)

(14

)

(15

)

(31

)

(29

)

1

 

6

%

2

 

6

%

(1

)

(7

)%

Operating expenses

 

(305

)

(310

)

(326

)

(321

)

(348

)

(617

)

(669

)

(43

)

(14

)%

(52

)

(8

)%

(27

)

(8

)%

Pretax operating earnings

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

 


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

 

29



 

 

Statistical Supplement Package

(unaudited)

 

Second Quarter 2013

 

Balance Sheet and Ratings Information

 

30



 

Ameriprise Financial, Inc.

Consolidated Balance Sheets

Second Quarter 2013

 

(in millions, unaudited)

 

June 30, 2012

 

September 30, 2012

 

December 31, 2012

 

March 31, 2013

 

June 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,721

 

$

3,325

 

$

2,371

 

$

2,160

 

$

2,331

 

Cash of consolidated investment entities

 

551

 

607

 

579

 

881

 

1,046

 

Investments

 

40,034

 

39,815

 

36,877

 

36,446

 

35,388

 

Investments of consolidated investment entities

 

4,690

 

4,587

 

4,370

 

4,358

 

4,579

 

Separate account assets

 

69,303

 

71,919

 

72,397

 

75,499

 

74,815

 

Receivables

 

4,339

 

4,415

 

4,220

 

4,256

 

4,583

 

Receivables of consolidated investment entities

 

38

 

56

 

95

 

127

 

68

 

Deferred acquisition costs

 

2,431

 

2,397

 

2,399

 

2,435

 

2,506

 

Restricted and segregated cash and investments

 

1,763

 

2,060

 

2,538

 

2,262

 

2,241

 

Other assets

 

8,319

 

8,224

 

7,667

 

7,684

 

8,378

 

Other assets of consolidated investment entities

 

1,081

 

1,159

 

1,216

 

1,188

 

1,323

 

Total Assets

 

$

135,270

 

$

138,564

 

$

134,729

 

$

137,296

 

$

137,258

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Future policy benefits and claims

 

$

31,675

 

$

31,595

 

$

31,217

 

$

30,545

 

$

30,088

 

Separate account liabilities

 

69,303

 

71,919

 

72,397

 

75,499

 

74,815

 

Customer deposits

 

10,079

 

10,048

 

6,526

 

6,494

 

6,586

 

Short-term borrowings

 

498

 

500

 

501

 

500

 

501

 

Long-term debt

 

2,403

 

2,413

 

2,403

 

2,389

 

2,352

 

Debt of consolidated investment entities

 

5,213

 

5,221

 

4,981

 

5,148

 

5,297

 

Accounts payable and accrued expenses

 

978

 

1,145

 

1,228

 

1,023

 

1,191

 

Accounts payable and accrued expenses of consolidated investment entities

 

24

 

25

 

96

 

30

 

107

 

Other liabilities

 

5,376

 

5,779

 

5,467

 

5,715

 

6,706

 

Other liabilities of consolidated investment entities

 

108

 

98

 

201

 

336

 

633

 

Total Liabilities

 

125,657

 

128,743

 

125,017

 

127,679

 

128,276

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial

 

 

 

 

 

 

 

 

 

 

 

Common shares ($.01 par)

 

3

 

3

 

3

 

3

 

3

 

Additional paid-in capital

 

6,287

 

6,363

 

6,503

 

6,592

 

6,730

 

Retained earnings

 

5,990

 

6,087

 

6,381

 

6,617

 

6,831

 

Appropriated retained earnings of consolidated investment entities

 

394

 

390

 

336

 

361

 

299

 

Treasury stock

 

(4,611

)

(4,953

)

(5,325

)

(5,697

)

(6,148

)

Accumulated other comprehensive income, net of tax

 

942

 

1,267

 

1,194

 

1,084

 

625

 

Total Ameriprise Financial Shareholders’ Equity

 

9,005

 

9,157

 

9,092

 

8,960

 

8,340

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests

 

608

 

664

 

620

 

657

 

642

 

Total Equity

 

9,613

 

9,821

 

9,712

 

9,617

 

8,982

 

Total Liabilities and Equity

 

$

135,270

 

$

138,564

 

$

134,729

 

$

137,296

 

$

137,258

 

 

31



 

Ameriprise Financial, Inc.

Capital and Ratings Information

Second Quarter 2013

 

(in millions unless otherwise noted, unaudited)

 

June 30, 2012

 

September 30, 2012

 

December 31, 2012

 

March 31, 2013

 

June 30, 2013

 

Long-term Debt Summary

 

 

 

 

 

 

 

 

 

 

 

Senior notes

 

$

2,109

 

$

2,119

 

$

2,109

 

$

2,095

 

$

2,058

 

Junior subordinated notes

 

294

 

294

 

294

 

294

 

294

 

Total Ameriprise Financial long-term debt

 

2,403

 

2,413

 

2,403

 

2,389

 

2,352

 

Non-recourse debt of consolidated investment entities

 

5,213

 

5,221

 

4,981

 

5,148

 

5,297

 

Total long-term debt

 

$

7,616

 

$

7,634

 

$

7,384

 

$

7,537

 

$

7,649

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt

 

$

2,403

 

$

2,413

 

$

2,403

 

$

2,389

 

$

2,352

 

Fair value of hedges and unamortized discount

 

(159

)

(169

)

(159

)

(145

)

(108

)

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

 

$

2,244

 

$

2,244

 

$

2,244

 

$

2,244

 

$

2,244

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity (2)

 

$

9,613

 

$

9,821

 

$

9,712

 

$

9,617

 

$

8,982

 

Noncontrolling interests

 

(608

)

(664

)

(620

)

(657

)

(642

)

Total Ameriprise Financial shareholders’ equity

 

9,005

 

9,157

 

9,092

 

8,960

 

8,340

 

Equity of consolidated investment entities

 

(370

)

(365

)

(312

)

(338

)

(282

)

Total Ameriprise Financial shareholders’ equity excluding CIEs (1)

 

$

8,635

 

$

8,792

 

$

8,780

 

$

8,622

 

$

8,058

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial capital

 

$

11,408

 

$

11,570

 

$

11,495

 

$

11,349

 

$

10,692

 

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

 

$

10,879

 

$

11,036

 

$

11,024

 

$

10,866

 

$

10,302

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to capital

 

 

 

 

 

 

 

 

 

 

 

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

 

21.1

%

20.9

%

20.9

%

21.1

%

22.0

%

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

 

20.6

%

20.3

%

20.4

%

20.7

%

21.8

%

 

Ratings (as of June 30, 2013 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)

Second Quarter 2013

 

(in millions unless otherwise noted, unaudited)

 

June 30, 2012

 

September 30, 2012

 

December 31, 2012

 

March 31, 2013

 

June 30, 2013

 

Cash and cash equivalents

 

$

2,721

 

$

3,325

 

$

2,371

 

$

2,160

 

$

2,331

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments - Ending Balances

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale Securities

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

18,425

 

18,787

 

18,815

 

18,533

 

17,732

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage backed securities

 

7,531

 

7,193

 

5,429

 

5,364

 

5,449

 

Commercial mortgage backed securities

 

4,442

 

4,270

 

3,419

 

3,222

 

2,958

 

Asset backed securities

 

1,718

 

1,651

 

1,275

 

1,390

 

1,405

 

Total mortgage and other asset backed securities

 

13,691

 

13,114

 

10,123

 

9,976

 

9,812

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal obligations

 

2,172

 

2,229

 

2,239

 

2,256

 

2,151

 

US government and agencies obligations

 

68

 

61

 

58

 

56

 

54

 

Foreign government bonds and obligations

 

216

 

223

 

224

 

215

 

254

 

Common and preferred stocks

 

10

 

11

 

13

 

13

 

15

 

Other AFS

 

8

 

 

 

 

 

Total other

 

2,474

 

2,524

 

2,534

 

2,540

 

2,474

 

Total available-for-sale securities

 

34,590

 

34,425

 

31,472

 

31,049

 

30,018

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage loans

 

2,584

 

2,570

 

2,606

 

2,621

 

2,642

 

Allowance for loan losses

 

(33

)

(29

)

(29

)

(29

)

(29

)

Commercial mortgage loans, net

 

2,551

 

2,541

 

2,577

 

2,592

 

2,613

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

1,134

 

1,089

 

1,039

 

987

 

951

 

Allowance for loan losses

 

(8

)

(8

)

(7

)

(6

)

(6

)

Residential mortgage loans, net

 

1,126

 

1,081

 

1,032

 

981

 

945

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy loans

 

750

 

752

 

754

 

754

 

761

 

Other investments

 

1,017

 

1,016

 

1,042

 

1,070

 

1,051

 

Total investments

 

40,034

 

39,815

 

36,877

 

36,446

 

35,388

 

Total cash, cash equivalents and investments

 

$

42,755

 

$

43,140

 

$

39,248

 

$

38,606

 

$

37,719

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gain Available-for-Sale Securities

 

$

2,434

 

$

3,092

 

$

2,962

 

$

2,745

 

$

1,740

 

 

 

 

 

 

 

 

 

 

 

 

 

AFS Fixed Maturity Asset Quality - %

 

 

 

 

 

 

 

 

 

 

 

AAA

 

33

%

32

%

26

%

25

%

25

%

AA

 

6

%

6

%

6

%

6

%

6

%

AFS securities AA and above

 

39

%

38

%

32

%

31

%

31

%

A

 

18

%

18

%

19

%

20

%

20

%

BBB

 

38

%

39

%

43

%

43

%

42

%

Below investment grade

 

5

%

5

%

6

%

6

%

7

%

Total AFS fixed maturity asset quality - %

 

100

%

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value of Below Investment Grade Investments as a % of Total Cash and Investments

 

5

%

5

%

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;

· Various financial measures that exclude the results of former banking operations

 

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. Our advisors have access to a diversified selection of both affiliated and non-affiliated products to help clients meet their financial needs. A significant portion of revenues in this segment is fee-based, driven by the level of client assets, which is impacted by both market movements and net asset flows. We also earn net investment income on owned assets primarily from certificate products. This segment also includes the results of operation for Ameriprise National Trust Bank (formerly Ameriprise Bank, FSB), which terminated its deposit-taking and credit-originating activities in the fourth quarter of 2012. This segment earns revenues (distribution fees) for providing non-affiliated products and earns 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.

 

Asset Management - This segment provides investment advice and investment products to retail, high net worth and institutional clients. Such products and services are provided on a global scale through Columbia Management Investment Advisers, LLC (Columbia Management) and Threadneedle Asset Management Holdings Sàrl (Threadneedle).  Columbia Management primarily provides U.S. domestic products and services, and Threadneedle primarily provides international investment products and services. 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 mutual funds, 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 and hedge funds are 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 to the products and services provided to third-party clients, management teams serving out Asset Management segment provide 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 fixed annuity products are provided 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 Equity - The internal allocation of consolidated Ameriprise Financial shareholders’ equity, excluding accumulated other comprehensive income (loss) and CIEs, 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 includes capital held for some stress contingencies.  Equity is allocated to our operating segments for purposes of measuring segment return on allocated equity.  For the Corporate & Other segment, allocated equity also includes any equity available after equity has been allocated to the operating segments. Allocated equity is not adjusted for non-operating items except for CIEs.

 

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

 

Ameriprise Financial - Ameriprise Financial includes ownership interests in subsidiaries that are attributable, directly or indirectly, to Ameriprise Financial, Inc. and excludes noncontrolling interests.

 

AOCI - Accumulated other comprehensive income (loss), net of tax.

 

Assets Under Administration - Assets under administration include assets for which we provide administrative services such as client assets invested in other companies’ products that we offer outside of our wrap accounts. These assets include those held in clients’ brokerage accounts. We generally record fees received from administered assets as distribution fees. We do not exercise management discretion over these assets and do not earn a management fee. These assets are not reported on our Consolidated Balance Sheets. Assets under administration also include certain assets on our Consolidated Balance Sheets for which we do not provide investment management services and do not recognize management fees, such as investments in non-affiliated funds held in the separate accounts of our life insurance subsidiaries. These assets do not include assets under advisement, for which we provide model portfolios but do not have full discretionary investment authority.

 

Assets Under Management - Assets under management include assets for which we provide investment management services, such as the assets of the Columbia funds and Threadneedle funds, assets of institutional clients, and client assets held in wrap and personal trust accounts as well as assets managed by sub-advisors selected by us. Assets under management also include certain assets on our Consolidated Balance Sheets for which we provide investment management services and recognize management fees in our Asset Management segment, such as the assets of the general account, RiverSource Variable Product funds held in the separate accounts of our life insurance subsidiaries, 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 certain property and hedge funds as well as the variable interest entities required to be consolidated under current accounting standards.

 

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

 

Deferred Acquisition Costs and Amortization - Deferred acquisition costs (“DAC”) represent the direct costs of acquiring new protection and annuity contracts, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of life, disability income, long term care, auto, and home insurance and annuities.  DAC also includes deferred direct sales commissions on certain mutual fund products. These costs are deferred to the extent they are directly related to the acquisition of new business and are recoverable from future profits.

 

Life Insurance in Force - The total amount of all life insurance death benefits currently insured by our company.

 

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

 

Net Amount at Risk - Life insurance in force less policyholder reserves net of reinsurance.

 

Net Flows - Sales less redemptions and miscellaneous flows which may include reinvested dividends.

 

Net New Flows - Mutual or VP/VIT fund inflows less outflows.

 

Operating Earnings - Net income attributable to Ameriprise Financial less integration/restructuring charges, net of tax, market impact on variable annuity guaranteed living benefits 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 living 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 Equity - Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.  Operating earnings are based on the regulatory levels of assets for each product line, not the higher of regulatory or 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 living 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 living 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.

 

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 investment advisory fee-based “wrap account” programs or services. We offer clients the opportunity to select products that include affiliated and non-affiliated funds. We currently offer both discretionary and non-discretionary investment advisory wrap accounts. In a discretionary wrap account, an unaffiliated investment advisor or our investment management subsidiary, Columbia Management Investment Advisers, LLC, chooses the underlying investments in the portfolio on behalf of the client. In a non-discretionary wrap account, the client chooses the underlying investments in the portfolio based, to the extent the client elects, in part or whole on the recommendations of their financial advisor. Investors in our wrap accounts generally pay an asset-based fee based on the assets held in their wrap accounts. These investors also pay any related fees or costs included in the underlying securities held in that account, such as underlying mutual fund operating expenses and Rule 12b-1 fees.

 

36



 

Exhibit A

 

 

Statistical Supplement Package

(unaudited)

 

Second Quarter 2013

 

Disclosed Items

 

37



 

Ameriprise Financial, Inc.

Disclosed Items

2 Qtr 2013

 

Excluded from Operating Earnings

 

 

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

Market Impact on

 

Market Impact on

 

 

 

 

 

 

 

 

 

Securities

 

VA Guaranteed

 

Indexed Universal

 

Securities

 

 

 

Restructuring

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Living Benefits (2)

 

Life Benefits (3)

 

Gains/(Losses) (1)

 

CIEs (4)

 

Charges (5)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

(29

)

$

 

Distribution fees

 

 

 

 

 

 

 

Net investment income

 

(3

)

 

 

3

 

7

 

 

Premiums

 

 

 

 

 

 

 

Other revenues

 

 

 

(1

)

 

34

 

 

Total revenues

 

(3

)

 

(1

)

3

 

12

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

Total net revenues

 

(3

)

 

(1

)

3

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

2

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

51

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

(8

)

(1

)

 

 

 

Interest and debt expense

 

 

 

 

 

35

 

 

General and administrative expense

 

 

 

 

 

17

 

1

 

Total expenses

 

 

43

 

1

 

 

52

 

1

 

Pretax segment income (loss)

 

(3

)

(43

)

(2

)

3

 

(40

)

(1

)

Less: Net income (loss) attributable to noncontrolling interest

 

 

 

 

 

(40

)

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

(3

)

$

(43

)

$

(2

)

$

3

 

$

 

$

(1

)

 

Included in Operating Earnings

 

 

 

Asset Management

 

Annuities

 

Protection

 

Consolidated

 

 

 

 

 

 

 

Market

 

 

 

Auto & Home

 

 

 

 

 

Gain on Sale -

 

 

 

Impacts

 

Reserve

 

Catastrophe

 

Compensation

 

(in millions, unaudited)

 

Cofunds (6)

 

CDO Benefit (7)

 

to DAC/DSIC (8)

 

Adjustment (9)

 

Losses (10)

 

Items (11)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

17

 

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

Net investment income

 

30

 

10

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

Total revenues

 

30

 

27

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

Operating total net revenues

 

30

 

27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

4

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

3

 

8

 

4

 

 

Amortization of deferred acquisition costs

 

 

 

9

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

General and administrative expense

 

 

8

 

 

 

 

17

 

Operating expenses

 

 

8

 

12

 

8

 

4

 

21

 

Pretax operating earnings

 

$

30

 

$

19

 

$

(12

)

$

(8

)

$

(4

)

$

(21

)

 


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

(2)             Variable annuity guaranteed living benefit impacts include:

$50 million net expense related to hedged variable annuity living benefits

$7 million decrease in DAC and DSIC amortization resulting from hedged living benefits

(3)             Indexed universal life benefit impacts include:

$2 million net expense related to hedged indexed universal life benefits

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

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

(4)             Reflects revenues and expenses of Consolidated Investment Entities

(5)             Non-recurring restructuring charges related to exiting the banking business

(6)             Threadneedle gain on sale of strategic business investment in Cofunds

(7)             CDO fund liquidation benefit

(8)             Increase in DAC and DSIC amortization from lower than projected separate account growth

(9)             Disability income insurance reserve adjustment

(10)        Above the normal expected level of claims experience; total catastrophe losses were $18 million for the quarter

(11)        True-up of performance based compensation, retention and benefit items as well as severance expense

 

38



 

Ameriprise Financial, Inc.

Disclosed Items

1 Qtr 2013

 

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

 

Securities

 

 

 

Restructuring

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Living Benefits (2)

 

Gains/(Losses) (1)

 

Life Benefits (3)

 

Gains/(Losses) (1)

 

CIEs (4)

 

Charges (5)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

(12

)

$

 

Distribution fees

 

 

 

 

 

 

 

 

 

Net investment income

 

1

 

(1

)

 

(1

)

 

2

 

77

 

 

Premiums

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

17

 

 

Total revenues

 

1

 

(1

)

 

(1

)

 

2

 

82

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

Total net revenues

 

1

 

(1

)

 

(1

)

 

2

 

82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

1

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

1

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

41

 

 

General and administrative expense

 

 

 

 

 

 

 

11

 

2

 

Total expenses

 

 

 

2

 

 

 

 

52

 

2

 

Pretax segment income (loss)

 

1

 

(1

)

(2

)

(1

)

 

2

 

30

 

(2

)

Less: Net income (loss) attributable to noncontrolling interest

 

 

 

 

 

 

 

30

 

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

1

 

$

(1

)

$

(2

)

$

(1

)

$

 

$

2

 

$

 

$

(2

)

 

Included in Operating Earnings

 

 

 

Asset Management

 

Annuities

 

Protection

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market

 

Market

 

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle

 

Impacts

 

Impacts

 

 

 

 

 

 

 

 

 

 

 

(in millions, unaudited)

 

Valuation (6)

 

to DAC/DSIC (7)

 

to DAC/DSIC (7)

 

 

 

 

 

 

 

 

 

 

 

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

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

(11

)

(1

)

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

2

 

(14

)

(1

)

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

(2

)

$

14

 

$

1

 

 

 

 

 

 

 

 

 

 

 

 


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

(2)             Variable annuity guaranteed living benefit impacts include:

$1 million net expense related to hedged variable annuity living benefits

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

(3)             Indexed universal life benefit impacts include:

$0 million net expense related to hedged indexed universal life benefits

$0 million increase in DAC amortization resulting from hedged indexed universal life benefits

$0 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)             Non-recurring restructuring charges related to exiting the banking business

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

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

 

39



 

Ameriprise Financial, Inc.

Disclosed Items

4 Qtr 2012

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth
Management

 

Annuities

 

Corporate and Eliminations

 

 

 

 

 

 

 

Market Impact on

 

 

 

 

 

 

 

 

 

Securities

 

Securities

 

VA Guaranteed

 

Securities

 

 

 

Restructuring

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Living Benefits (2)(7)

 

Gains/(Losses) (1)

 

CIEs (3)

 

Charges (4)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

(11

)

$

 

Distribution fees

 

 

 

 

 

 

 

Net investment income

 

84

 

(3

)

 

1

 

(8

)

 

Premiums

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

10

 

5

 

Total revenues

 

84

 

(3

)

 

1

 

(9

)

5

 

Banking and deposit interest expense

 

 

 

 

 

 

1

 

Total net revenues

 

84

 

(3

)

 

1

 

(9

)

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

57

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

(12

)

 

 

 

Interest and debt expense

 

 

 

 

 

42

 

 

General and administrative expense

 

 

 

 

 

6

 

9

 

Total expenses

 

 

 

45

 

 

48

 

9

 

Pretax segment income (loss)

 

84

 

(3

)

(45

)

1

 

(57

)

(5

)

Less: Net income (loss) attributable to noncontrolling interest

 

 

 

 

 

(57

)

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

84

 

$

(3

)

$

(45

)

$

1

 

$

 

$

(5

)

 

Included in Operating Earnings

 

 

 

Annuities

 

Protection

 

Corporate and
Eliminations

 

Consolidated

 

 

 

 

 

Market

 

 

 

Auto & Home

 

Settlement with

 

 

 

 

 

 

 

Impacts

 

Valuation

 

Catastrophe

 

Third Party

 

 

 

 

 

(in millions, unaudited)

 

to DAC/DSIC (5)

 

Model Revisions (6)(7)

 

Losses (8)

 

Service Provider (9)

 

Tax Adjustment (10)

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

Total revenues

 

 

 

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

Operating total net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

(1

)

(53

)

20

 

 

 

 

 

Amortization of deferred acquisition costs

 

(1

)

10

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

General and administrative expense

 

 

 

 

(15

)

 

 

 

Operating expenses

 

(2

)

(43

)

20

 

(15

)

 

 

 

Pretax operating earnings

 

$

2

 

$

43

 

$

(20

)

$

15

 

$

 

 

 

Tax adjustment

 

 

 

 

 

 

 

 

 

$

16

 

 

 

 


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

(2)             Variable annuity guaranteed living benefit impacts include:

$59 million net expense related to hedged variable annuity living benefits

$14 million decrease in DAC and DSIC amortization resulting from hedged living benefits

(3)             Reflects revenues and expenses of Consolidated Investment Entities

(4)             Non-recurring restructuring charges related to exiting the banking business

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

(6)             Revisions to certain calculations in the valuation of Variable Annuities

(7)             $2 million expense attributable to valuation model revisions is excluded from operating earnings and disclosed as part of the Market Impact on VA Guaranteed Living Benefits

(8)             Catastrophe losses related to Superstorm Sandy

(9)             Positive impact related to settlement with a third party service provider

(10)        Tax adjustment from prior periods

 

40



 

Ameriprise Financial, Inc.

Disclosed Items

3 Qtr 2012

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth
Management

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

 

 

Market Impact on

 

 

 

 

 

 

 

 

 

 

 

Securities

 

Securities

 

VA Guaranteed

 

Securities

 

Securities

 

 

 

Restructuring

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Living Benefits (2)(8)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

CIEs (3)

 

Charges (4)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

(11

)

$

 

Distribution fees

 

 

 

 

 

 

 

 

Net investment income

 

(67

)

1

 

 

(1

)

(1

)

43

 

(7

)

Premiums

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

(5

)

 

Total revenues

 

(67

)

1

 

 

(1

)

(1

)

27

 

(7

)

Banking and deposit interest expense

 

 

 

 

 

 

 

1

 

Total net revenues

 

(67

)

1

 

 

(1

)

(1

)

27

 

(8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

117

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

(26

)

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

44

 

 

General and administrative expense

 

 

 

 

 

 

5

 

9

 

Total expenses

 

 

 

91

 

 

 

49

 

9

 

Pretax segment income (loss)

 

(67

)

1

 

(91

)

(1

)

(1

)

(22

)

(17

)

Less: Net income (loss) attributable to noncontrolling interest

 

 

 

 

 

 

(22

)

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

(67

)

$

1

 

$

(91

)

$

(1

)

$

(1

)

$

 

$

(17

)

 

Included in Operating Earnings

 

 

 

Asset Management

 

Annuities

 

Protection

 

 

 

 

 

 

 

Hedge Fund

 

Market

 

Valuation

 

Market

 

Valuation

 

 

 

 

 

 

 

Redemption

 

Impacts

 

Assumptions &

 

Impacts

 

Assumptions &

 

 

 

 

 

(in millions, unaudited)

 

Performance Fees (5)

 

to DAC/DSIC (6)

 

Model Changes (7)(8)

 

to DAC/DSIC (6)

 

Model Changes (7)

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

*

 

$

 

$

 

$

 

$

 

 

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

(41

)

 

 

 

 

Total revenues

 

 

 

 

 

(41

)

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

 

 

 

 

(41

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

(3

)

32

 

 

(14

)

 

 

 

 

Amortization of deferred acquisition costs

 

 

(11

)

28

 

(1

)

(14

)

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

*

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

(14

)

60

 

(1

)

(28

)

 

 

 

 

Pretax operating earnings

 

$

7

 

$

14

 

$

(60

)

$

1

 

$

(13

)

 

 

 

 

 


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

(2)             Variable annuity guaranteed living benefit impacts include:

$123 million net expense related to hedged variable annuity living benefits

$32 million decrease in DAC and DSIC amortization resulting from hedged living benefits

(3)             Reflects revenues and expenses of Consolidated Investment Entities

(4)             Non-recurring restructuring charges related to exiting the banking business

(5)             The company has chosen not to disclose the gross revenue and expense amounts for competitive reasons, but instead has shown the net impact on pretax operating earnings

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

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

(8)             $10 million expense attributable to annual review/updating of valuation assumptions and model changes is excluded from operating earnings and disclosed as part of the Market Impact on VA Guaranteed Living Benefits

 

41



 

Ameriprise Financial, Inc.

Disclosed Items

2 Qtr 2012

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth 
Management

 

Asset Management

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

 

 

 

 

Market Impact on

 

 

 

 

 

 

 

 

 

 

 

Securities

 

Integration

 

Securities

 

VA Guaranteed

 

Securities

 

Securities

 

 

 

Restructuring

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Charges (2)

 

Gains/(Losses) (1)

 

Living Benefits (3)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

CIEs (4)

 

Charges (5)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

(10

)

$

 

Distribution fees

 

 

 

 

 

 

 

 

 

Net investment income

 

(4

)

 

(2

)

 

(1

)

2

 

14

 

 

Premiums

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

(3

)

 

Total revenues

 

(4

)

 

(2

)

 

(1

)

2

 

1

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

Total net revenues

 

(4

)

 

(2

)

 

(1

)

2

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

11

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

5

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

48

 

 

General and administrative expense

 

 

22

 

 

 

 

 

6

 

4

 

Total expenses

 

 

22

 

 

16

 

 

 

54

 

4

 

Pretax segment income (loss)

 

(4

)

(22

)

(2

)

(16

)

(1

)

2

 

(53

)

(4

)

Less: Net income (loss) attributable to noncontrolling interest

 

 

 

 

 

 

 

(53

)

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

(4

)

$

(22

)

$

(2

)

$

(16

)

$

(1

)

$

2

 

$

 

$

(4

)

 

Included in Operating Earnings

 

 

 

Annuities

 

Protection

 

Consolidated

 

 

 

 

 

 

 

 

 

Market

 

 

 

Market

 

Auto & Home

 

 

 

 

 

 

 

Guaranty Fund

 

Valuation

 

Impacts

 

Reserve

 

Impacts

 

Catastrophe

 

Net Tax-

 

 

 

(in millions, unaudited)

 

Assessments (6)

 

Model Updates (7)

 

to DAC/DSIC (8)

 

Release (9)

 

to DAC/DSIC (8)

 

Losses (10)

 

Related Item (11)

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

 

 

 

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

2

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

12

 

3

 

(9

)

 

8

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

8

 

 

1

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

6

 

 

 

 

 

 

 

 

 

Operating expenses

 

6

 

14

 

11

 

(9

)

1

 

8

 

 

 

 

Pretax operating earnings

 

$

(6

)

$

(14

)

$

(11

)

$

9

 

$

(1

)

$

(8

)

$

 

 

 

Net tax-related item

 

 

 

 

 

 

 

 

 

 

 

 

 

$

40

 

 

 


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

(2)             Non-recurring integration charges related to Columbia Management acquisition

(3)             Variable annuity guaranteed living benefit impacts include:

$9 million net expense related to hedged variable annuity living benefits

$7 million increase in DAC and DSIC amortization resulting from hedged living benefits

(4)             Reflects revenues and expenses of Consolidated Investment Entities

(5)             Non-recurring restructuring charges related to exiting the banking business

(6)             Insurance industry guaranty fund assessments, primarily related to Executive Life of NY (unaffiliated)

(7)             Revisions to certain calculations in the valuation of our insurance and annuity products

(8)             Increase in DAC and DSIC amortization from lower than projected separate account growth

(9)             Release of excess life insurance reserve

(10)        Above the normal expected level of claims experience due to storms; total catastrophe losses were $17 million for the quarter

(11)        Tax-related item related to incomplete data received from a third party service provider for securities lending activities in prior periods

 

42



 

Exhibit B

 

 

Statistical Supplement Package

(unaudited)

 

Second Quarter 2013

 

Non-GAAP Financial Measure Reconciliations

 

43



 

Ameriprise Financial, Inc.

Non-GAAP Financial Measure Reconciliations

Second Quarter 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-date

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2012

 

3 Qtr 2012

 

4 Qtr 2012

 

1 Qtr 2013

 

2 Qtr 2013

 

2012

 

2013

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Ameriprise Financial (last twelve months)

 

$

1,027

 

$

876

 

$

1,029

 

$

1,120

 

$

1,218

 

$

1,027

 

$

1,218

 

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

 

13

 

10

 

(2

)

(2

)

(2

)

13

 

(2

)

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

 

1,014

 

866

 

1,031

 

1,122

 

1,220

 

1,014

 

1,220

 

Less adjustments (1)

 

(172

)

(320

)

(214

)

(126

)

(126

)

(172

)

(126

)

Operating earnings (last twelve months)

 

$

1,186

 

$

1,186

 

$

1,245

 

$

1,248

 

$

1,346

 

$

1,186

 

$

1,346

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

9,072

 

$

9,057

 

$

9,071

 

$

9,066

 

$

8,911

 

$

9,072

 

$

8,911

 

Less assets and liabilities held for sale (five point quarter end average)

 

16

 

21

 

 

 

 

16

 

 

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

 

804

 

912

 

1,001

 

1,068

 

1,023

 

804

 

1,023

 

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

 

8,252

 

8,124

 

8,070

 

7,998

 

7,888

 

8,252

 

7,888

 

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

 

427

 

406

 

397

 

384

 

356

 

427

 

356

 

Operating equity (five point quarter end average)

 

$

7,825

 

$

7,718

 

$

7,673

 

$

7,614

 

$

7,532

 

$

7,825

 

$

7,532

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity excluding AOCI

 

12.3

%

10.7

%

12.8

%

14.0

%

15.5

%

12.3

%

15.5

%

Operating return on equity excluding AOCI

 

15.2

%

15.4

%

16.2

%

16.4

%

17.9

%

15.2

%

17.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective Tax Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax provision

 

$

299

 

$

199

 

$

418

 

$

487

 

$

402

 

$

621

 

$

889

 

Less pretax income (loss) attributable to noncontrolling interests

 

(53

)

(22

)

(57

)

30

 

(40

)

(49

)

(10

)

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

 

352

 

221

 

475

 

457

 

442

 

670

 

899

 

Less adjustments (2)

 

(47

)

(176

)

32

 

(3

)

(46

)

(185

)

(49

)

Pretax operating earnings

 

$

399

 

$

397

 

$

443

 

$

460

 

$

488

 

$

855

 

$

948

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision from continuing operations

 

$

128

 

$

47

 

$

87

 

$

121

 

$

120

 

$

201

 

$

241

 

Operating income tax provision

 

$

145

 

$

108

 

$

76

 

$

122

 

$

136

 

$

266

 

$

258

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate (3)

 

42.8

%

23.8

%

20.8

%

25.0

%

29.6

%

32.4

%

27.1

%

Effective tax rate excluding noncontrolling interests (3)

 

36.4

%

21.4

%

18.3

%

26.6

%

26.9

%

30.0

%

26.8

%

Operating effective tax rate (3)

 

36.3

%

27.2

%

17.2

%

26.5

%

27.9

%

31.1

%

27.2

%

 


(1)             Adjustments reflect the trailing twelve months’ sum of after-tax net realized gains/losses; the market impact on variable annuity guaranteed living benefits net of hedges and related DSIC and DAC amortization; 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 living 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.

(3)             Q2 2012 includes a tax-related item related to incomplete data received from a third party service provider for securities lending activities in prior periods.

 

44



 

Ameriprise Financial, Inc.

Non-GAAP Financial Measure Reconciliations

Second Quarter 2013

 

(in millions unless otherwise noted, unaudited)

 

June 30, 2012

 

September 30, 2012

 

December 31, 2012

 

March 31, 2013

 

June 30, 2013

 

Long-term Debt Summary

 

 

 

 

 

 

 

 

 

 

 

Senior notes

 

$

2,109

 

$

2,119

 

$

2,109

 

$

2,095

 

$

2,058

 

Junior subordinated notes

 

294

 

294

 

294

 

294

 

294

 

Total Ameriprise Financial long-term debt

 

2,403

 

2,413

 

2,403

 

2,389

 

2,352

 

Less fair value of hedges and unamortized discount

 

159

 

169

 

159

 

145

 

108

 

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

 

$

2,244

 

$

2,244

 

$

2,244

 

$

2,244

 

$

2,244

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Summary

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

$

9,613

 

$

9,821

 

$

9,712

 

$

9,617

 

$

8,982

 

Less noncontrolling interests

 

608

 

664

 

620

 

657

 

642

 

Total Ameriprise Financial shareholders’ equity

 

9,005

 

9,157

 

9,092

 

8,960

 

8,340

 

Less equity of consolidated investment entities

 

370

 

365

 

312

 

338

 

282

 

Total Ameriprise Financial shareholders’ equity excluding CIEs

 

$

8,635

 

$

8,792

 

$

8,780

 

$

8,622

 

$

8,058

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Summary

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt

 

$

2,403

 

$

2,413

 

$

2,403

 

$

2,389

 

$

2,352

 

Total Ameriprise Financial shareholders’ equity

 

9,005

 

9,157

 

9,092

 

8,960

 

8,340

 

Total Ameriprise Financial capital

 

11,408

 

11,570

 

11,495

 

11,349

 

10,692

 

Less equity of consolidated investment entities

 

370

 

365

 

312

 

338

 

282

 

Less fair value of hedges and unamortized discount

 

159

 

169

 

159

 

145

 

108

 

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

 

$

10,879

 

$

11,036

 

$

11,024

 

$

10,866

 

$

10,302

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

21.1

%

20.9

%

20.9

%

21.1

%

22.0

%

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

 

20.6

%

20.3

%

20.4

%

20.7

%

21.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial shareholders’ equity

 

$

9,005

 

$

9,157

 

$

9,092

 

$

8,960

 

$

8,340

 

AOCI

 

942

 

1,267

 

1,194

 

1,084

 

625

 

Appropriated retained earnings of CIEs

 

394

 

390

 

336

 

361

 

299

 

AOCI attributable to CIEs

 

(24

)

(25

)

(24

)

(23

)

(17

)

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial shareholders’ equity

 

$

9,005

 

$

9,157

 

$

9,092

 

$

8,960

 

$

8,340

 

Less AOCI

 

942

 

1,267

 

1,194

 

1,084

 

625

 

Ameriprise Financial shareholders’ equity excluding AOCI

 

$

8,063

 

$

7,890

 

$

7,898

 

$

7,876

 

$

7,715

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial shareholders’ equity

 

$

9,005

 

$

9,157

 

$

9,092

 

$

8,960

 

$

8,340

 

Less appropriated retained earnings of CIEs

 

394

 

390

 

336

 

361

 

299

 

Less AOCI

 

942

 

1,267

 

1,194

 

1,084

 

625

 

Ameriprise Financial shareholders’ equity excluding CIEs and AOCI

 

$

7,669

 

$

7,500

 

$

7,562

 

$

7,515

 

$

7,416

 

 

45