AMERIPRISE FINANCIAL INC - FORM 8-K - EX-99.2 - January 27, 2016

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Exhibit 99.2

 

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2015

 


 

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

39

Exhibit B

 

Non-GAAP Financial Measure Reconciliations

45

 

2


 

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2015

 

Consolidated Results

 

3


 

Ameriprise Financial, Inc.

Statistical Supplement Presentation

Fourth Quarter 2015

 

Ameriprise Financial, Inc. (“Ameriprise Financial” or “the Company”) prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”). Management believes that operating measures, which exclude net realized investment gains or losses, net of deferred sales inducement costs (“DSIC”) and deferred acquisition costs (“DAC”) amortization, unearned revenue amortization and the reinsurance accrual; the market impact on variable annuity guaranteed benefits, net of hedges and the related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration and restructuring charges; income (loss) from discontinued operations; and the impact of consolidating certain investment entities (“CIEs”), best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis. The Company also uses a number of non-GAAP financial measures to evaluate its financial performance on a basis comparable to that used by some securities analysts and investors. However, these measures are not a substitute for GAAP. Therefore, reconciliations to GAAP measures are provided on page 6 and in Exhibit B “Non-GAAP Financial Measure Reconciliations” on pages 45 and 46.

 

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

 

Operating earnings is the measure of segment profit or loss management uses to evaluate segment performance.  Operating earnings should not be viewed as a substitute for GAAP income from continuing operations before income tax provision.  Management believes the presentation of segment operating earnings as we measure it for management purposes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitating a more meaningful trend analysis.

 

In addition, management uses adjusted net pretax operating margin in the Asset Management segment to evaluate segment performance on a basis comparable to other asset managers.  In the Asset Management segment, operating revenues are adjusted to exclude distribution pass through revenues and subadvisory and other pass through revenues, and operating earnings are adjusted to exclude operating net investment income and amortization of intangibles.

 

4


 

Ameriprise Financial, Inc.

Consolidated GAAP Income Statements

Fourth Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions, except per share amounts, unaudited)

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

1,489

 

$

1,468

 

$

1,518

 

$

1,465

 

$

1,499

 

$

5,810

 

$

5,950

 

$

10

 

1

%

$

140

 

2

%

$

34

 

2

%

Distribution fees

 

484

 

466

 

472

 

451

 

458

 

1,894

 

1,847

 

(26

)

(5

)%

(47

)

(2

)%

7

 

2

%

Net investment income

 

409

 

484

 

423

 

321

 

460

 

1,741

 

1,688

 

51

 

12

%

(53

)

(3

)%

139

 

43

%

Premiums

 

359

 

353

 

368

 

360

 

374

 

1,385

 

1,455

 

15

 

4

%

70

 

5

%

14

 

4

%

Other revenues

 

355

 

289

 

354

 

296

 

321

 

1,466

 

1,260

 

(34

)

(10

)%

(206

)

(14

)%

25

 

8

%

Total revenues

 

3,096

 

3,060

 

3,135

 

2,893

 

3,112

 

12,296

 

12,200

 

16

 

1

%

(96

)

(1

)%

219

 

8

%

Banking and deposit interest expense

 

7

 

7

 

7

 

7

 

9

 

28

 

30

 

2

 

29

%

2

 

7

%

2

 

29

%

Total net revenues

 

3,089

 

3,053

 

3,128

 

2,886

 

3,103

 

12,268

 

12,170

 

14

 

—

 

(98

)

(1

)%

217

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

827

 

819

 

835

 

806

 

816

 

3,236

 

3,276

 

(11

)

(1

)%

40

 

1

%

10

 

1

%

Interest credited to fixed accounts

 

184

 

172

 

160

 

171

 

165

 

713

 

668

 

(19

)

(10

)%

(45

)

(6

)%

(6

)

(4

)%

Benefits, claims, losses and settlement expenses

 

568

 

533

 

543

 

471

 

714

 

1,982

 

2,261

 

146

 

26

%

279

 

14

%

243

 

52

%

Amortization of deferred acquisition costs

 

86

 

75

 

94

 

133

 

52

 

367

 

354

 

(34

)

(40

)%

(13

)

(4

)%

(81

)

(61

)%

Interest and debt expense

 

91

 

84

 

89

 

98

 

116

 

328

 

387

 

25

 

27

%

59

 

18

%

18

 

18

%

General and administrative expense

 

775

 

752

 

792

 

744

 

794

 

3,095

 

3,082

 

19

 

2

%

(13

)

—

 

50

 

7

%

Total expenses

 

2,531

 

2,435

 

2,513

 

2,423

 

2,657

 

9,721

 

10,028

 

126

 

5

%

307

 

3

%

234

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax provision

 

558

 

618

 

615

 

463

 

446

 

2,547

 

2,142

 

(112

)

(20

)%

(405

)

(16

)%

(17

)

(4

)%

Income tax provision

 

104

 

139

 

139

 

111

 

66

 

545

 

455

 

(38

)

(37

)%

(90

)

(17

)%

(45

)

(41

)%

Income from continuing operations

 

454

 

479

 

476

 

352

 

380

 

2,002

 

1,687

 

(74

)

(16

)%

(315

)

(16

)%

28

 

8

%

Income (loss) from discontinued operations, net of tax

 

(1

)

—

 

—

 

—

 

—

 

(2

)

—

 

1

 

#

 

2

 

#

 

—

 

—

 

Net income

 

453

 

479

 

476

 

352

 

380

 

2,000

 

1,687

 

(73

)

(16

)%

(313

)

(16

)%

28

 

8

%

Less: Net income (loss) attributable to noncontrolling interests

 

28

 

86

 

61

 

(45

)

23

 

381

 

125

 

(5

)

(18

)%

(256

)

(67

)%

68

 

#

 

Net income attributable to Ameriprise Financial

 

$

425

 

$

393

 

$

415

 

$

397

 

$

357

 

$

1,619

 

$

1,562

 

$

(68

)

(16

)%

$

(57

)

(4

)%

$

(40

)

(10

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

365

 

$

354

 

$

355

 

$

346

 

$

348

 

$

1,479

 

$

1,403

 

$

(17

)

(5

)%

$

(76

)

(5

)%

$

2

 

1

%

Realized investment gains (losses)

 

27

 

10

 

5

 

(10

)

(1

)

37

 

4

 

(28

)

#

 

(33

)

(89

)%

9

 

90

%

Affordable housing

 

(5

)

(8

)

(10

)

(7

)

7

 

(25

)

(18

)

12

 

#

 

7

 

28

%

14

 

#

 

Other (including seed money)

 

23

 

23

 

19

 

(10

)

36

 

93

 

68

 

13

 

57

%

(25

)

(27

)%

46

 

#

 

Consolidated investment entities

 

(1

)

105

 

54

 

2

 

70

 

157

 

231

 

71

 

#

 

74

 

47

%

68

 

#

 

Total net investment income

 

$

409

 

$

484

 

$

423

 

$

321

 

$

460

 

$

1,741

 

$

1,688

 

$

51

 

12

%

$

(53

)

(3

)%

$

139

 

43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

2.27

 

$

2.11

 

$

2.26

 

$

2.20

 

$

2.02

 

$

8.46

 

$

8.60

 

$

(0.25

)

(11

)%

$

0.14

 

2

%

$

(0.18

)

(8

)%

Income (loss) from discontinued operations

 

(0.01

)

—

 

—

 

—

 

—

 

(0.01

)

—

 

0.01

 

#

 

0.01

 

#

 

—

 

—

 

Net income

 

$

2.26

 

$

2.11

 

$

2.26

 

$

2.20

 

$

2.02

 

$

8.45

 

$

8.60

 

$

(0.24

)

(11

)%

$

0.15

 

2

%

$

(0.18

)

(8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

2.23

 

$

2.08

 

$

2.23

 

$

2.17

 

$

2.00

 

$

8.31

 

$

8.48

 

$

(0.23

)

(10

)%

$

0.17

 

2

%

$

(0.17

)

(8

)%

Income (loss) from discontinued operations

 

(0.01

)

—

 

—

 

—

 

—

 

(0.01

)

—

 

0.01

 

#

 

0.01

 

#

 

—

 

—

 

Net income

 

$

2.22

 

$

2.08

 

$

2.23

 

$

2.17

 

$

2.00

 

$

8.30

 

$

8.48

 

$

(0.22

)

(10

)%

$

0.18

 

2

%

$

(0.17

)

(8

)%

Earnings per diluted share growth (from continuing operations)

 

51.7

%

3.5

%

16.8

%

—

 

(10.3

)%

28.6

%

2.0

%

(62.0

)%

 

 

(26.6

)%

 

 

(10.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

187.9

 

186.3

 

183.8

 

180.4

 

176.6

 

191.6

 

181.7

 

(11.3

)

(6

)%

(9.9

)

(5

)%

(3.8

)

(2

)%

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

 

3.3

 

2.8

 

2.6

 

2.3

 

2.3

 

3.4

 

2.5

 

(1.0

)

(30

)%

(0.9

)

(26

)%

—

 

—

 

Diluted weighted average common shares outstanding

 

191.2

 

189.1

 

186.4

 

182.7

 

178.9

 

195.0

 

184.2

 

(12.3

)

(6

)%

(10.8

)

(6

)%

(3.8

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue growth

 

4.9

%

1.9

%

1.8

%

(7.2

)%

0.5

%

9.5

%

(0.8

)%

(4.4

)%

 

 

(10.3

)%

 

 

7.7

%

 

 

Pretax income margin (1)

 

18.1

%

20.2

%

19.7

%

16.0

%

14.4

%

20.8

%

17.6

%

(3.7

)%

 

 

(3.2

)%

 

 

(1.6

)%

 

 

Effective tax rate

 

18.7

%

22.5

%

22.6

%

24.1

%

14.8

%

21.4

%

21.3

%

(3.9

)%

 

 

(0.1

)%

 

 

(9.3

)%

 

 

Effective tax rate excluding noncontrolling interests (2)

 

19.7

%

26.1

%

25.1

%

21.9

%

15.6

%

25.2

%

22.6

%

(4.1

)%

 

 

(2.6

)%

 

 

(6.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial shareholders’ equity / outstanding shares (3)

 

$

43.47

 

$

44.27

 

$

43.25

 

$

42.76

 

$

41.33

 

$

43.47

 

$

41.33

 

$

(2.14

)

(5

)%

$

(2.14

)

(5

)%

$

(1.43

)

(3

)%

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

 

$

39.93

 

$

40.47

 

$

40.50

 

$

40.18

 

$

39.89

 

$

39.93

 

$

39.89

 

$

(0.04

)

—

 

$

(0.04

)

—

 

$

(0.29

)

(1

)%

 

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

(2)       See non-GAAP financial information on pg 34.  Non-GAAP financial measure reconciliations can be found on pages 45 and 46.

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

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

# Variance equal to or greater than 100%.

 

5


 

Ameriprise Financial, Inc.

Consolidated Operating Results and Highlights

Fourth Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions except per share amounts, unaudited)

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

$

3,089

 

$

3,053

 

$

3,128

 

$

2,886

 

$

3,103

 

$

12,268

 

$

12,170

 

$

14

 

—

 

$

(98

)

(1

)%

$

217

 

8

%

Less revenues attributable to the CIEs

 

108

 

149

 

141

 

43

 

113

 

651

 

446

 

5

 

5

%

(205

)

(31

)%

70

 

#

 

Less net realized investment gains (losses) (1)

 

27

 

10

 

5

 

(10

)

(1

)

37

 

4

 

(28

)

#

 

(33

)

(89

)%

9

 

90

%

Less market impact on indexed universal life benefits (1)

 

(11

)

(4

)

—

 

9

 

2

 

(11

)

7

 

13

 

#

 

18

 

#

 

(7

)

(78

)%

Less market impact of hedges on investments

 

—

 

—

 

(1

)

(31

)

11

 

—

 

(21

)

11

 

—

 

(21

)

—

 

42

 

#

 

Operating total net revenues (2)

 

$

2,965

 

$

2,898

 

$

2,983

 

$

2,875

 

$

2,978

 

$

11,591

 

$

11,734

 

$

13

 

—

 

$

143

 

1

%

$

103

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Ameriprise Financial

 

$

425

 

$

393

 

$

415

 

$

397

 

$

357

 

$

1,619

 

$

1,562

 

$

(68

)

(16

)%

$

(57

)

(4

)%

$

(40

)

(10

)%

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

 

(1

)

—

 

—

 

—

 

—

 

(2

)

—

 

1

 

#

 

2

 

#

 

—

 

—

 

Net income from continuing operations attributable to Ameriprise Financial

 

426

 

393

 

415

 

397

 

357

 

1,621

 

1,562

 

(69

)

(16

)%

(59

)

(4

)%

(40

)

(10

)%

Integration/restructuring charges, net of tax (3)

 

—

 

—

 

1

 

2

 

—

 

—

 

3

 

—

 

—

 

3

 

—

 

(2

)

#

 

Market impact on variable annuity guaranteed benefits, net of tax (1)(3)

 

21

 

22

 

23

 

3

 

91

 

61

 

139

 

70

 

#

 

78

 

#

 

88

 

#

 

Market impact on indexed universal life benefits, net of tax (1)(3)

 

10

 

4

 

(3

)

—

 

—

 

4

 

1

 

(10

)

#

 

(3

)

(75

)%

—

 

—

 

Market impact of hedges on investments, net of tax (3)

 

—

 

—

 

1

 

20

 

(7

)

—

 

14

 

(7

)

—

 

14

 

—

 

(27

)

#

 

Less net realized investment gains (losses), net of tax (1)(3)

 

17

 

7

 

3

 

(7

)

—

 

24

 

3

 

(17

)

#

 

(21

)

(88

)%

7

 

#

 

Operating earnings (2)

 

$

440

 

$

412

 

$

434

 

$

429

 

$

441

 

$

1,662

 

$

1,716

 

$

1

 

—

 

$

54

 

3

%

$

12

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax provision

 

$

558

 

$

618

 

$

615

 

$

463

 

$

446

 

$

2,547

 

$

2,142

 

$

(112

)

(20

)%

$

(405

)

(16

)%

$

(17

)

(4

)%

Less net income (loss) attributable to noncontrolling interests

 

28

 

86

 

61

 

(45

)

23

 

381

 

125

 

(5

)

(18

)%

(256

)

(67

)%

68

 

#

 

Pretax earnings excluding CIEs

 

530

 

532

 

554

 

508

 

423

 

2,166

 

2,017

 

(107

)

(20

)%

(149

)

(7

)%

(85

)

(17

)%

Integration/restructuring charges

 

—

 

—

 

1

 

3

 

1

 

—

 

5

 

1

 

—

 

5

 

—

 

(2

)

(67

)%

Market impact on variable annuity guaranteed benefits (1)

 

34

 

34

 

36

 

5

 

139

 

94

 

214

 

105

 

#

 

120

 

#

 

134

 

#

 

Market impact on indexed universal life benefits (1)

 

15

 

6

 

(5

)

1

 

(1

)

6

 

1

 

(16

)

#

 

(5

)

(83

)%

(2

)

#

 

Market impact of hedges on investments

 

—

 

—

 

1

 

31

 

(11

)

—

 

21

 

(11

)

—

 

21

 

—

 

(42

)

#

 

Less net realized investment gains (losses) (1)

 

27

 

10

 

5

 

(10

)

(1

)

37

 

4

 

(28

)

#

 

(33

)

(89

)%

9

 

90

%

Pretax operating earnings (2)

 

$

552

 

$

562

 

$

582

 

$

558

 

$

552

 

$

2,229

 

$

2,254

 

$

—

 

—

 

$

25

 

1

%

$

(6

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Operating Margin (2)(4)

 

18.6

%

19.4

%

19.5

%

19.4

%

18.5

%

19.2

%

19.2

%

(0.1

)%

 

 

—

 

 

 

(0.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Effective Tax Rate (2)(5)

 

20.3

%

26.7

%

25.4

%

23.1

%

20.1

%

25.4

%

23.9

%

(0.2

)%

 

 

(1.5

)%

 

 

(3.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

187.9

 

186.3

 

183.8

 

180.4

 

176.6

 

191.6

 

181.7

 

(11.3

)

(6

)%

(9.9

)

(5

)%

(3.8

)

(2

)%

Diluted

 

191.2

 

189.1

 

186.4

 

182.7

 

178.9

 

195.0

 

184.2

 

(12.3

)

(6

)%

(10.8

)

(6

)%

(3.8

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Earnings Per Share (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic operating earnings per share

 

$

2.34

 

$

2.21

 

$

2.36

 

$

2.38

 

$

2.50

 

$

8.67

 

$

9.44

 

$

0.16

 

7

%

$

0.77

 

9

%

$

0.12

 

5

%

Operating earnings per diluted share

 

$

2.30

 

$

2.18

 

$

2.33

 

$

2.35

 

$

2.47

 

$

8.52

 

$

9.32

 

$

0.17

 

7

%

$

0.80

 

9

%

$

0.12

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity excluding AOCI (2)(5)

 

21.5

%

21.5

%

22.1

%

22.0

%

21.4

%

21.5

%

21.4

%

(0.1

)%

 

 

(0.1

)%

 

 

(0.6

)%

 

 

Operating return on equity excluding AOCI (2)(5)

 

23.0

%

23.1

%

23.5

%

24.0

%

24.3

%

23.0

%

24.3

%

1.3

%

 

 

1.3

%

 

 

0.3

%

 

 

 

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

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

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

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

(5)     Non-GAAP financial measure reconciliations can be found on pg 45.

# Variance equal to or greater than 100%.

 

6


 

Ameriprise Financial, Inc.

Consolidated Operating Results and Highlights

Fourth Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

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

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

42.28

 

$

42.84

 

$

41.91

 

$

41.86

 

$

40.58

 

$

42.28

 

$

40.58

 

$

(1.70

)

(4

)%

$

(1.70

)

(4

)%

$

(1.28

)

(3

)%

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

 

$

38.67

 

$

38.96

 

$

39.09

 

$

39.20

 

$

39.10

 

$

38.67

 

$

39.10

 

$

0.43

 

1

%

$

0.43

 

1

%

$

(0.10

)

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenue growth: Target 6 - 8%

 

5.3

%

3.1

%

2.3

%

(0.8

)%

0.4

%

6.8

%

1.2

%

(4.9

)%

 

 

(5.6

)%

 

 

1.2

%

 

 

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

 

23.0

%

6.9

%

12.0

%

11.9

%

7.4

%

20.9

%

9.4

%

(15.6

)%

 

 

(11.5

)%

 

 

(4.5

)%

 

 

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

 

23.0

%

23.1

%

23.5

%

24.0

%

24.3

%

23.0

%

24.3

%

1.3

%

 

 

1.3

%

 

 

0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

27.4

%

27.2

%

28.0

%

28.4

%

27.3

%

27.4

%

27.3

%

(0.1

)%

 

 

(0.1

)%

 

 

(1.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill and Intangible Assets

 

$

2,010

 

$

1,982

 

$

1,997

 

$

1,982

 

$

1,981

 

$

2,010

 

$

1,981

 

$

(29

)

(1

)%

$

(29

)

(1

)%

$

(1

)

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Under Management and Administration

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management AUM

 

$

174,088

 

$

179,361

 

$

181,127

 

$

173,000

 

$

179,574

 

$

174,088

 

$

179,574

 

$

5,486

 

3

%

$

5,486

 

3

%

$

6,574

 

4

%

Asset Management AUM

 

505,588

 

506,310

 

503,093

 

471,078

 

471,888

 

505,588

 

471,888

 

(33,700

)

(7

)%

(33,700

)

(7

)%

810

 

—

 

Corporate AUM

 

826

 

756

 

723

 

693

 

670

 

826

 

670

 

(156

)

(19

)%

(156

)

(19

)%

(23

)

(3

)%

Eliminations

 

(21,885

)

(22,489

)

(23,255

)

(22,200

)

(23,074

)

(21,885

)

(23,074

)

(1,189

)

(5

)%

(1,189

)

(5

)%

(874

)

(4

)%

Total Assets Under Management

 

658,617

 

663,938

 

661,688

 

622,571

 

629,058

 

658,617

 

629,058

 

(29,559

)

(4

)%

(29,559

)

(4

)%

6,487

 

1

%

Total Assets Under Administration

 

147,560

 

150,836

 

149,385

 

143,183

 

147,677

 

147,560

 

147,677

 

117

 

—

 

117

 

—

 

4,494

 

3

%

Total AUM and AUA

 

$

806,177

 

$

814,774

 

$

811,073

 

$

765,754

 

$

776,735

 

$

806,177

 

$

776,735

 

$

(29,442

)

(4

)%

$

(29,442

)

(4

)%

$

10,981

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise client assets

 

$

444,391

 

$

452,969

 

$

453,336

 

$

433,458

 

$

447,120

 

$

444,391

 

$

447,120

 

$

2,729

 

1

%

$

2,729

 

1

%

$

13,662

 

3

%

Total branded financial advisors

 

9,672

 

9,691

 

9,721

 

9,814

 

9,789

 

9,672

 

9,789

 

117

 

1

%

117

 

1

%

(25

)

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Flows and Net Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded advisor wrap

 

$

3,130

 

$

2,802

 

$

3,278

 

$

2,980

 

$

2,093

 

$

14,188

 

$

11,153

 

$

(1,037

)

(33

)%

$

(3,035

)

(21

)%

$

(887

)

(30

)%

Asset Management

 

5,682

 

(5,821

)

(1,959

)

(7,371

)

(692

)

2,092

 

(15,843

)

(6,374

)

#

 

(17,935

)

#

 

6,679

 

91

%

Annuities

 

(721

)

(950

)

(901

)

(634

)

(541

)

(3,192

)

(3,026

)

180

 

25

%

166

 

5

%

93

 

15

%

Variable universal life / Universal life

 

(30

)

(48

)

(44

)

(46

)

(19

)

(138

)

(157

)

11

 

37

%

(19

)

(14

)%

27

 

59

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

S&P 500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Daily average

 

2,012

 

2,064

 

2,102

 

2,027

 

2,052

 

1,931

 

2,061

 

40

 

2

%

130

 

7

%

25

 

1

%

Period end

 

2,059

 

2,068

 

2,063

 

1,920

 

2,044

 

2,059

 

2,044

 

(15

)

(1

)%

(15

)

(1

)%

124

 

6

%

 

(1)      See non-GAAP financial information on pg 34.  Non-GAAP financial measure reconciliations can be found on pages 45 and 46.

(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.

# Variance equal to or greater than 100%.

 

7


 

Ameriprise Financial, Inc.

Common Share and Capital Summary

Fourth Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

185.4

 

183.1

 

181.8

 

178.7

 

175.0

 

192.1

 

183.1

 

(10.4

)

(6

)%

(9.0

)

(5

)%

(3.7

)

(2

)%

Repurchases

 

(2.7

)

(2.6

)

(3.4

)

(3.8

)

(4.1

)

(11.8

)

(13.9

)

(1.4

)

(52

)%

(2.1

)

(18

)%

(0.3

)

(8

)%

Issuances

 

0.9

 

2.0

 

0.4

 

0.2

 

0.1

 

5.7

 

2.7

 

(0.8

)

(89

)%

(3.0

)

(53

)%

(0.1

)

(50

)%

Other

 

(0.5

)

(0.7

)

(0.1

)

(0.1

)

—

 

(2.9

)

(0.9

)

0.5

 

#

 

2.0

 

69

%

0.1

 

#

 

Total common shares outstanding

 

183.1

 

181.8

 

178.7

 

175.0

 

171.0

 

183.1

 

171.0

 

(12.1

)

(7

)%

(12.1

)

(7

)%

(4.0

)

(2

)%

Restricted stock units

 

3.8

 

3.3

 

3.4

 

3.4

 

3.6

 

3.8

 

3.6

 

(0.2

)

(5

)%

(0.2

)

(5

)%

0.2

 

6

%

Total basic common shares outstanding

 

186.9

 

185.1

 

182.1

 

178.4

 

174.6

 

186.9

 

174.6

 

(12.3

)

(7

)%

(12.3

)

(7

)%

(3.8

)

(2

)%

Total potentially dilutive shares

 

3.2

 

2.7

 

2.5

 

2.2

 

2.2

 

3.2

 

2.2

 

(1.0

)

(31

)%

(1.0

)

(31

)%

—

 

—

 

Total diluted shares

 

190.1

 

187.8

 

184.6

 

180.6

 

176.8

 

190.1

 

176.8

 

(13.3

)

(7

)%

(13.3

)

(7

)%

(3.8

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Returned to Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

$

109

 

$

110

 

$

124

 

$

121

 

$

119

 

$

435

 

$

474

 

$

10

 

9

%

$

39

 

9

%

$

(2

)

(2

)%

Common stock share repurchases

 

$

335

 

$

349

 

$

425

 

$

450

 

$

450

 

$

1,372

 

$

1,674

 

$

115

 

34

%

$

302

 

22

%

$

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated Capital (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

$

510

 

$

516

 

$

521

 

$

528

 

$

543

 

$

510

 

$

543

 

$

33

 

6

%

$

33

 

6

%

$

15

 

3

%

Asset Management

 

1,884

 

1,872

 

1,854

 

1,836

 

1,847

 

1,884

 

1,847

 

(37

)

(2

)%

(37

)

(2

)%

11

 

1

%

Annuities

 

1,982

 

1,987

 

1,941

 

1,900

 

1,893

 

1,982

 

1,893

 

(89

)

(4

)%

(89

)

(4

)%

(7

)

—

 

Protection

 

1,962

 

1,975

 

2,014

 

2,009

 

2,045

 

1,962

 

2,045

 

83

 

4

%

83

 

4

%

36

 

2

%

Corporate & Other

 

3,884

 

3,856

 

3,782

 

3,674

 

3,094

 

3,884

 

3,094

 

(790

)

(20

)%

(790

)

(20

)%

(580

)

(16

)%

Total allocated capital

 

$

10,222

 

$

10,206

 

$

10,112

 

$

9,947

 

$

9,422

 

$

10,222

 

$

9,422

 

$

(800

)

(8

)%

$

(800

)

(8

)%

$

(525

)

(5

)%

 

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

# Variance equal to or greater than 100%.

 

8


 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2015

 

Segment Results

 

9


 

Ameriprise Financial, Inc.

Segment Summary

Fourth Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Segment Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

1,249

 

$

1,228

 

$

1,274

 

$

1,245

 

$

1,266

 

$

4,806

 

$

5,013

 

$

17

 

1

%

$

207

 

4

%

$

21

 

2

%

Operating expenses

 

1,037

 

1,018

 

1,054

 

1,026

 

1,056

 

4,014

 

4,154

 

19

 

2

%

140

 

3

%

30

 

3

%

Pretax operating earnings

 

$

212

 

$

210

 

$

220

 

$

219

 

$

210

 

$

792

 

$

859

 

$

(2

)

(1

)%

$

67

 

8

%

$

(9

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

510

 

$

516

 

$

521

 

$

528

 

$

543

 

$

510

 

$

543

 

$

33

 

6

%

$

33

 

6

%

$

15

 

3

%

Operating return on allocated capital (1)

 

120.5

%

121.6

%

124.3

%

126.8

%

125.0

%

120.5

%

125.0

%

4.5

%

 

 

4.5

%

 

 

(1.8

)%

 

 

Pretax operating margin

 

17.0

%

17.1

%

17.3

%

17.6

%

16.6

%

16.5

%

17.1

%

(0.4

)%

 

 

0.6

%

 

 

(1.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

830

 

$

807

 

$

832

 

$

782

 

$

833

 

$

3,320

 

$

3,254

 

$

3

 

—

 

$

(66

)

(2

)%

$

51

 

7

%

Operating expenses

 

632

 

616

 

635

 

602

 

640

 

2,532

 

2,493

 

8

 

1

%

(39

)

(2

)%

38

 

6

%

Pretax operating earnings

 

$

198

 

$

191

 

$

197

 

$

180

 

$

193

 

$

788

 

$

761

 

$

(5

)

(3

)%

$

(27

)

(3

)%

$

13

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,884

 

$

1,872

 

$

1,854

 

$

1,836

 

$

1,847

 

$

1,884

 

$

1,847

 

$

(37

)

(2

)%

$

(37

)

(2

)%

$

11

 

1

%

Operating return on allocated capital (1)

 

31.3

%

31.5

%

31.9

%

31.2

%

31.2

%

31.3

%

31.2

%

(0.1

)%

 

 

(0.1

)%

 

 

—

 

 

 

Pretax operating margin

 

23.9

%

23.7

%

23.7

%

23.0

%

23.2

%

23.7

%

23.4

%

(0.7

)%

 

 

(0.3

)%

 

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

830

 

$

807

 

$

832

 

$

782

 

$

833

 

$

3,320

 

$

3,254

 

$

3

 

—

 

$

(66

)

(2

)%

$

51

 

7

%

Distribution pass thru revenues

 

(231

)

(218

)

(219

)

(214

)

(211

)

(929

)

(862

)

20

 

9

%

67

 

7

%

3

 

1

%

Subadvisory and other pass thru revenues

 

(99

)

(103

)

(102

)

(95

)

(107

)

(400

)

(407

)

(8

)

(8

)%

(7

)

(2

)%

(12

)

(13

)%

Adjusted operating revenues (2)

 

$

500

 

$

486

 

$

511

 

$

473

 

$

515

 

$

1,991

 

$

1,985

 

$

15

 

3

%

$

(6

)

—

 

$

42

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

198

 

$

191

 

$

197

 

$

180

 

$

193

 

$

788

 

$

761

 

$

(5

)

(3

)%

$

(27

)

(3

)%

$

13

 

7

%

Operating net investment income

 

(6

)

(6

)

(4

)

(1

)

(12

)

(30

)

(23

)

(6

)

#

 

7

 

23

%

(11

)

#

 

Amortization of intangibles

 

8

 

8

 

7

 

6

 

6

 

34

 

27

 

(2

)

(25

)%

(7

)

(21

)%

—

 

—

 

Adjusted operating earnings (2)

 

$

200

 

$

193

 

$

200

 

$

185

 

$

187

 

$

792

 

$

765

 

$

(13

)

(7

)%

$

(27

)

(3

)%

$

2

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net pretax operating margin (2)(3)

 

40.0

%

39.7

%

39.1

%

39.1

%

36.3

%

39.8

%

38.5

%

(3.7

)%

 

 

(1.3

)%

 

 

(2.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

649

 

$

631

 

$

651

 

$

632

 

$

627

 

$

2,591

 

$

2,541

 

$

(22

)

(3

)%

$

(50

)

(2

)%

$

(5

)

(1

)%

Operating expenses

 

490

 

459

 

501

 

456

 

475

 

1,958

 

1,891

 

(15

)

(3

)%

(67

)

(3

)%

19

 

4

%

Pretax operating earnings

 

$

159

 

$

172

 

$

150

 

$

176

 

$

152

 

$

633

 

$

650

 

$

(7

)

(4

)%

$

17

 

3

%

$

(24

)

(14

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,982

 

$

1,987

 

$

1,941

 

$

1,900

 

$

1,893

 

$

1,982

 

$

1,893

 

$

(89

)

(4

)%

$

(89

)

(4

)%

$

(7

)

—

 

Operating return on allocated capital (1)

 

19.3

%

20.7

%

22.1

%

25.6

%

25.5

%

19.3

%

25.5

%

6.2

%

 

 

6.2

%

 

 

(0.1

)%

 

 

Pretax operating margin

 

24.5

%

27.3

%

23.0

%

27.8

%

24.2

%

24.4

%

25.6

%

(0.3

)%

 

 

1.2

%

 

 

(3.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Protection

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

600

 

$

590

 

$

600

 

$

586

 

$

608

 

$

2,287

 

$

2,384

 

$

8

 

1

%

$

97

 

4

%

$

22

 

4

%

Operating expenses

 

570

 

539

 

528

 

561

 

573

 

2,041

 

2,201

 

3

 

1

%

160

 

8

%

12

 

2

%

Pretax operating earnings

 

$

30

 

$

51

 

$

72

 

$

25

 

$

35

 

$

246

 

$

183

 

$

5

 

17

%

$

(63

)

(26

)%

$

10

 

40

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,962

 

$

1,975

 

$

2,014

 

$

2,009

 

$

2,045

 

$

1,962

 

$

2,045

 

$

83

 

4

%

$

83

 

4

%

$

36

 

2

%

Operating return on allocated capital (1)

 

9.6

%

9.1

%

8.4

%

6.8

%

6.9

%

9.6

%

6.9

%

(2.7

)%

 

 

(2.7

)%

 

 

0.1

%

 

 

Pretax operating margin

 

5.0

%

8.6

%

12.0

%

4.3

%

5.8

%

10.8

%

7.7

%

0.8

%

 

 

(3.1

)%

 

 

1.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate & Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

1

 

$

(6

)

$

(2

)

$

(4

)

$

15

 

$

4

 

$

3

 

$

14

 

#

 

$

(1

)

(25

)%

$

19

 

#

 

Operating expenses

 

48

 

56

 

55

 

38

 

53

 

234

 

202

 

5

 

10

%

(32

)

(14

)%

15

 

39

%

Pretax operating loss

 

$

(47

)

$

(62

)

$

(57

)

$

(42

)

$

(38

)

$

(230

)

$

(199

)

$

9

 

19

%

$

31

 

13

%

$

4

 

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 capital as of the last day of the trailing four quarters and current quarter in the denominator.

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

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

# Variance equal to or greater than 100%.

 

10


 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2015

 

Advice & Wealth Management Segment

 

11


 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment

Fourth Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

633

 

$

637

 

$

666

 

$

658

 

$

668

 

$

2,413

 

$

2,629

 

$

35

 

6

%

$

216

 

9

%

$

10

 

2

%

Distribution fees

 

571

 

543

 

561

 

540

 

551

 

2,213

 

2,195

 

(20

)

(4

)%

(18

)

(1

)%

11

 

2

%

Net investment income

 

35

 

35

 

35

 

38

 

38

 

136

 

146

 

3

 

9

%

10

 

7

%

—

 

—

 

Premiums

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Other revenues

 

17

 

20

 

19

 

16

 

18

 

72

 

73

 

1

 

6

%

1

 

1

%

2

 

13

%

Total revenues

 

1,256

 

1,235

 

1,281

 

1,252

 

1,275

 

4,834

 

5,043

 

19

 

2

%

209

 

4

%

23

 

2

%

Banking and deposit interest expense

 

7

 

7

 

7

 

7

 

9

 

28

 

30

 

2

 

29

%

2

 

7

%

2

 

29

%

Operating total net revenues

 

1,249

 

1,228

 

1,274

 

1,245

 

1,266

 

4,806

 

5,013

 

17

 

1

%

207

 

4

%

21

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

760

 

757

 

783

 

764

 

777

 

2,943

 

3,081

 

17

 

2

%

138

 

5

%

13

 

2

%

Interest credited to fixed accounts

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Benefits, claims, losses and settlement expenses

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Amortization of deferred acquisition costs

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Interest and debt expense

 

1

 

2

 

2

 

2

 

2

 

6

 

8

 

1

 

#

 

2

 

33

%

—

 

—

 

General and administrative expense

 

276

 

259

 

269

 

260

 

277

 

1,065

 

1,065

 

1

 

—

 

—

 

—

 

17

 

7

%

Operating expenses

 

1,037

 

1,018

 

1,054

 

1,026

 

1,056

 

4,014

 

4,154

 

19

 

2

%

140

 

3

%

30

 

3

%

Pretax operating earnings

 

$

212

 

$

210

 

$

220

 

$

219

 

$

210

 

$

792

 

$

859

 

$

(2

)

(1

)%

$

67

 

8

%

$

(9

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

17.0

%

17.1

%

17.3

%

17.6

%

16.6

%

16.5

%

17.1

%

(0.4

)%

 

 

0.6

%

 

 

(1.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

510

 

$

516

 

$

521

 

$

528

 

$

543

 

$

510

 

$

543

 

$

33

 

6

%

$

33

 

6

%

$

15

 

3

%

Operating return on allocated capital (1)

 

120.5

%

121.6

%

124.3

%

126.8

%

125.0

%

120.5

%

125.0

%

4.5

%

 

 

4.5

%

 

 

(1.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

On-balance sheet deposits

 

$

7,674

 

$

7,885

 

$

7,825

 

$

8,049

 

$

8,638

 

$

7,674

 

$

8,638

 

$

964

 

13

%

$

964

 

13

%

$

589

 

7

%

 

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

# Variance equal to or greater than 100%.

 

12


 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment

Fourth Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

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

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates and Banking - Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

10

 

$

10

 

$

15

 

$

11

 

$

10

 

$

40

 

$

46

 

$

—

 

—

 

$

6

 

15

%

$

(1

)

(9

)%

Allocated capital

 

$

236

 

$

241

 

$

243

 

$

251

 

$

268

 

$

236

 

$

268

 

$

32

 

14

%

$

32

 

14

%

$

17

 

7

%

Operating return on allocated capital (1)

 

12.9

%

12.0

%

13.9

%

14.5

%

14.1

%

12.9

%

14.1

%

1.2

%

 

 

1.2

%

 

 

(0.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth Management & Distribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

202

 

$

200

 

$

205

 

$

208

 

$

200

 

$

752

 

$

813

 

$

(2

)

(1

)%

$

61

 

8

%

$

(8

)

(4

)%

Allocated capital

 

$

274

 

$

275

 

$

278

 

$

277

 

$

275

 

$

274

 

$

275

 

$

1

 

—

 

$

1

 

—

 

$

(2

)

(1

)%

Operating return on allocated capital (1)

 

217.1

%

218.5

%

220.2

%

225.3

%

224.5

%

217.1

%

224.5

%

7.4

%

 

 

7.4

%

 

 

(0.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded financial plan net cash sales

 

$

70

 

$

62

 

$

65

 

$

62

 

$

74

 

$

251

 

$

263

 

$

4

 

6

%

$

12

 

5

%

$

12

 

19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Advisors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee advisors

 

2,083

 

2,084

 

2,082

 

2,099

 

2,083

 

2,083

 

2,083

 

—

 

—

 

—

 

—

 

(16

)

(1

)%

Franchisee advisors

 

7,589

 

7,607

 

7,639

 

7,715

 

7,706

 

7,589

 

7,706

 

117

 

2

%

117

 

2

%

(9

)

—

 

Total branded financial advisors

 

9,672

 

9,691

 

9,721

 

9,814

 

9,789

 

9,672

 

9,789

 

117

 

1

%

117

 

1

%

(25

)

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

129

 

$

127

 

$

131

 

$

127

 

$

129

 

$

496

 

$

514

 

$

—

 

—

 

$

18

 

4

%

$

2

 

2

%

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

 

$

496

 

$

505

 

$

512

 

$

514

 

$

514

 

$

496

 

$

514

 

$

18

 

4

%

$

18

 

4

%

$

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisor Retention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee

 

91.2

%

91.0

%

91.1

%

91.0

%

91.0

%

91.2

%

91.0

%

(0.2

)%

 

 

(0.2

)%

 

 

—

 

 

 

Franchisee

 

94.5

%

94.3

%

94.2

%

94.2

%

94.2

%

94.5

%

94.2

%

(0.3

)%

 

 

(0.3

)%

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Client Assets (at period end)

 

$

444,391

 

$

452,969

 

$

453,336

 

$

433,458

 

$

447,120

 

$

444,391

 

$

447,120

 

$

2,729

 

1

%

$

2,729

 

1

%

$

13,662

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Wrap Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

169,227

 

$

174,670

 

$

180,044

 

$

181,853

 

$

173,788

 

$

153,512

 

$

174,670

 

$

4,561

 

3

%

$

21,158

 

14

%

$

(8,065

)

(4

)%

Net flows

 

3,130

 

2,802

 

3,278

 

2,980

 

2,093

 

14,188

 

11,153

 

(1,037

)

(33

)%

(3,035

)

(21

)%

(887

)

(30

)%

Market appreciation (depreciation) and other

 

2,313

 

2,572

 

(1,469

)

(11,045

)

4,607

 

6,970

 

(5,335

)

2,294

 

99

%

(12,305

)

#

 

15,652

 

#

 

Total wrap ending assets

 

$

174,670

 

$

180,044

 

$

181,853

 

$

173,788

 

$

180,488

 

$

174,670

 

$

180,488

 

$

5,818

 

3

%

$

5,818

 

3

%

$

6,700

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory wrap account assets ending balance (4)

 

$

173,489

 

$

178,749

 

$

180,451

 

$

172,342

 

$

178,879

 

$

173,489

 

$

178,879

 

5,390

 

3

%

5,390

 

3

%

6,537

 

4

%

 

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

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

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

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

#            Variance equal to or greater than 100%.

 

13


 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2015

 

Asset Management Segment

 

14


 

Ameriprise Financial, Inc.
Asset Management Segment
Fourth Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

698

 

$

674

 

$

696

 

$

656

 

$

697

 

$

2,791

 

$

2,723

 

$

(1

)

—

 

$

(68

)

(2

)%

$

41

 

6

%

Distribution fees

 

125

 

125

 

128

 

123

 

123

 

493

 

499

 

(2

)

(2

)%

6

 

1

%

—

 

—

 

Net investment income

 

6

 

6

 

4

 

1

 

12

 

30

 

23

 

6

 

#

 

(7

)

(23

)%

11

 

#

 

Premiums

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Other revenues

 

1

 

2

 

4

 

2

 

1

 

6

 

9

 

—

 

—

 

3

 

50

%

(1

)

(50

)%

Total revenues

 

830

 

807

 

832

 

782

 

833

 

3,320

 

3,254

 

3

 

—

 

(66

)

(2

)%

51

 

7

%

Banking and deposit interest expense

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Operating total net revenues

 

830

 

807

 

832

 

782

 

833

 

3,320

 

3,254

 

3

 

—

 

(66

)

(2

)%

51

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

285

 

278

 

278

 

270

 

265

 

1,148

 

1,091

 

(20

)

(7

)%

(57

)

(5

)%

(5

)

(2

)%

Interest credited to fixed accounts

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Benefits, claims, losses and settlement expenses

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Amortization of deferred acquisition costs

 

3

 

3

 

5

 

4

 

5

 

15

 

17

 

2

 

67

%

2

 

13

%

1

 

25

%

Interest and debt expense

 

7

 

6

 

7

 

6

 

6

 

26

 

25

 

(1

)

(14

)%

(1

)

(4

)%

—

 

—

 

General and administrative expense

 

337

 

329

 

345

 

322

 

364

 

1,343

 

1,360

 

27

 

8

%

17

 

1

%

42

 

13

%

Operating expenses

 

632

 

616

 

635

 

602

 

640

 

2,532

 

2,493

 

8

 

1

%

(39

)

(2

)%

38

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

198

 

$

191

 

$

197

 

$

180

 

$

193

 

$

788

 

$

761

 

$

(5

)

(3

)%

$

(27

)

(3

)%

$

13

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

23.9

%

23.7

%

23.7

%

23.0

%

23.2

%

23.7

%

23.4

%

(0.7

)%

 

 

(0.3

)%

 

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

830

 

$

807

 

$

832

 

$

782

 

$

833

 

$

3,320

 

$

3,254

 

$

3

 

—

 

$

(66

)

(2

)%

$

51

 

7

%

Distribution pass thru revenues

 

(231

)

(218

)

(219

)

(214

)

(211

)

(929

)

(862

)

20

 

9

%

67

 

7

%

3

 

1

%

Subadvisory and other pass thru revenues

 

(99

)

(103

)

(102

)

(95

)

(107

)

(400

)

(407

)

(8

)

(8

)%

(7

)

(2

)%

(12

)

(13

)%

Adjusted operating revenues (1)

 

$

500

 

$

486

 

$

511

 

$

473

 

$

515

 

$

1,991

 

$

1,985

 

$

15

 

3

%

$

(6

)

—

 

$

42

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

198

 

$

191

 

$

197

 

$

180

 

$

193

 

$

788

 

$

761

 

$

(5

)

(3

)%

$

(27

)

(3

)%

$

13

 

7

%

Operating net investment income

 

(6

)

(6

)

(4

)

(1

)

(12

)

(30

)

(23

)

(6

)

#

 

7

 

23

%

(11

)

#

 

Amortization of intangibles

 

8

 

8

 

7

 

6

 

6

 

34

 

27

 

(2

)

(25

)%

(7

)

(21

)%

—

 

—

 

Adjusted operating earnings (1)

 

$

200

 

$

193

 

$

200

 

$

185

 

$

187

 

$

792

 

$

765

 

$

(13

)

(7

)%

$

(27

)

(3

)%

$

2

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net pretax operating margin (1)(2)

 

40.0

%

39.7

%

39.1

%

39.1

%

36.3

%

39.8

%

38.5

%

(3.7

)%

 

 

(1.3

)%

 

 

(2.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,884

 

$

1,872

 

$

1,854

 

$

1,836

 

$

1,847

 

$

1,884

 

$

1,847

 

$

(37

)

(2

)%

$

(37

)

(2

)%

$

11

 

1

%

Operating return on allocated capital (3)

 

31.3

%

31.5

%

31.9

%

31.2

%

31.2

%

31.3

%

31.2

%

(0.1

)%

 

 

(0.1

)%

 

 

—

 

 

 

 

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

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

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

#            Variance equal to or greater than 100%.

 

15


 

Ameriprise Financial, Inc.
Asset Management Segment
Fourth Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Total Managed Asset Net Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Columbia managed asset net flows

 

$

7,136

 

$

(3,199

)

$

(285

)

$

(4,994

)

$

(453

)

$

2,332

 

$

(8,931

)

$

(7,589

)

#

 

$

(11,263

)

#

 

$

4,541

 

91

%

Threadneedle managed asset net flows

 

(1,073

)

(1,116

)

(756

)

(3,633

)

174

 

45

 

(5,331

)

1,247

 

#

 

(5,376

)

#

 

3,807

 

#

 

Sub-advised eliminations

 

(381

)

(1,506

)

(918

)

1,256

 

(413

)

(285

)

(1,581

)

(32

)

(8

)%

(1,296

)

#

 

(1,669

)

#

 

Total managed asset net flows

 

$

5,682

 

$

(5,821

)

$

(1,959

)

$

(7,371

)

$

(692

)

$

2,092

 

$

(15,843

)

$

(6,374

)

#

 

$

(17,935

)

#

 

$

6,679

 

91

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Managed Assets Reconciliations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Columbia managed assets

 

$

361,190

 

$

364,186

 

$

358,528

 

$

336,236

 

$

334,670

 

$

361,190

 

$

334,670

 

$

(26,520

)

(7

)%

$

(26,520

)

(7

)%

$

(1,566

)

—

 

Threadneedle managed assets

 

147,883

 

147,235

 

150,716

 

139,152

 

142,110

 

147,883

 

142,110

 

(5,773

)

(4

)%

(5,773

)

(4

)%

2,958

 

2

%

Sub-advised eliminations

 

(3,485

)

(5,111

)

(6,151

)

(4,310

)

(4,892

)

(3,485

)

(4,892

)

(1,407

)

(40

)%

(1,407

)

(40

)%

(582

)

(14

)%

Total managed assets

 

$

505,588

 

$

506,310

 

$

503,093

 

$

471,078

 

$

471,888

 

$

505,588

 

$

471,888

 

$

(33,700

)

(7

)%

$

(33,700

)

(7

)%

$

810

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Managed Assets by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

$

278,052

 

$

279,395

 

$

276,974

 

$

248,925

 

$

255,466

 

$

278,052

 

$

255,466

 

$

(22,586

)

(8

)%

$

(22,586

)

(8

)%

$

6,541

 

3

%

Fixed income

 

193,355

 

192,009

 

188,592

 

184,727

 

176,596

 

193,355

 

176,596

 

(16,759

)

(9

)%

(16,759

)

(9

)%

(8,131

)

(4

)%

Money market

 

6,660

 

6,918

 

7,039

 

6,524

 

7,467

 

6,660

 

7,467

 

807

 

12

%

807

 

12

%

943

 

14

%

Alternative

 

7,453

 

7,372

 

7,941

 

8,272

 

8,198

 

7,453

 

8,198

 

745

 

10

%

745

 

10

%

(74

)

(1

)%

Hybrid and other

 

20,068

 

20,616

 

22,547

 

22,630

 

24,161

 

20,068

 

24,161

 

4,093

 

20

%

4,093

 

20

%

1,531

 

7

%

Total managed assets by type

 

$

505,588

 

$

506,310

 

$

503,093

 

$

471,078

 

$

471,888

 

$

505,588

 

$

471,888

 

$

(33,700

)

(7

)%

$

(33,700

)

(7

)%

$

810

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Managed Assets by Type (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

$

279,786

 

$

279,148

 

$

280,553

 

$

266,179

 

$

257,682

 

$

279,378

 

$

271,458

 

$

(22,104

)

(8

)%

$

(7,920

)

(3

)%

$

(8,497

)

(3

)%

Fixed income

 

194,701

 

193,845

 

190,643

 

187,341

 

180,990

 

195,937

 

188,150

 

(13,711

)

(7

)%

(7,787

)

(4

)%

(6,351

)

(3

)%

Money market

 

6,538

 

6,457

 

6,895

 

6,715

 

7,267

 

6,613

 

6,834

 

729

 

11

%

221

 

3

%

552

 

8

%

Alternative

 

7,383

 

7,411

 

7,814

 

7,912

 

8,297

 

7,018

 

7,858

 

914

 

12

%

840

 

12

%

385

 

5

%

Hybrid and other

 

19,638

 

20,341

 

21,707

 

22,805

 

23,731

 

18,322

 

22,195

 

4,093

 

21

%

3,873

 

21

%

926

 

4

%

Total average managed assets by type

 

$

508,046

 

$

507,202

 

$

507,612

 

$

490,952

 

$

477,967

 

$

507,268

 

$

496,495

 

$

(30,079

)

(6

)%

$

(10,773

)

(2

)%

$

(12,985

)

(3

)%

 

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

# Variance equal to or greater than 100%.

 

16


 

Ameriprise Financial, Inc.

Asset Management Segment - Columbia

Fourth Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Columbia Managed Assets Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

237,034

 

$

237,652

 

$

239,501

 

$

234,843

 

$

215,901

 

$

239,393

 

$

237,652

 

$

(21,133

)

(9

)%

$

(1,741

)

(1

)%

$

(18,942

)

(8

)%

Mutual fund inflows

 

9,545

 

9,227

 

8,776

 

7,871

 

9,271

 

35,954

 

35,145

 

(274

)

(3

)%

(809

)

(2

)%

1,400

 

18

%

Mutual fund outflows

 

(12,779

)

(12,292

)

(12,811

)

(12,446

)

(12,719

)

(47,355

)

(50,268

)

60

 

—

 

(2,913

)

(6

)%

(273

)

(2

)%

Net VP/VIT fund flows

 

(255

)

(265

)

(208

)

(163

)

(101

)

(924

)

(737

)

154

 

60

%

187

 

20

%

62

 

38

%

Net new flows

 

(3,489

)

(3,330

)

(4,243

)

(4,738

)

(3,549

)

(12,325

)

(15,860

)

(60

)

(2

)%

(3,535

)

(29

)%

1,189

 

25

%

Reinvested dividends

 

8,995

 

469

 

3,571

 

606

 

8,584

 

13,419

 

13,230

 

(411

)

(5

)%

(189

)

(1

)%

7,978

 

#

 

Net flows

 

5,506

 

(2,861

)

(672

)

(4,132

)

5,035

 

1,094

 

(2,630

)

(471

)

(9

)%

(3,724

)

#

 

9,167

 

#

 

Distributions

 

(10,652

)

(595

)

(4,122

)

(734

)

(10,290

)

(15,941

)

(15,741

)

362

 

3

%

200

 

1

%

(9,556

)

#

 

Market appreciation (depreciation) and other

 

5,764

 

5,305

 

136

 

(14,076

)

7,728

 

13,106

 

(907

)

1,964

 

34

%

(14,013

)

#

 

21,804

 

#

 

Total ending assets

 

237,652

 

239,501

 

234,843

 

215,901

 

218,374

 

237,652

 

218,374

 

(19,278

)

(8

)%

(19,278

)

(8

)%

2,473

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of total retail assets sub-advised

 

20.2

%

21.6

%

21.8

%

21.5

%

20.2

%

20.2

%

20.2

%

—

 

 

 

—

 

 

 

(1.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

78,019

 

80,709

 

81,752

 

81,263

 

77,273

 

75,648

 

80,709

 

(746

)

(1

)%

5,061

 

7

%

(3,990

)

(5

)%

Inflows

 

5,806

 

4,946

 

5,140

 

4,352

 

3,961

 

20,466

 

18,399

 

(1,845

)

(32

)%

(2,067

)

(10

)%

(391

)

(9

)%

Outflows

 

(4,702

)

(5,301

)

(5,227

)

(5,696

)

(9,199

)

(20,218

)

(25,423

)

(4,497

)

(96

)%

(5,205

)

(26

)%

(3,503

)

(61

)%

Net flows

 

1,104

 

(355

)

(87

)

(1,344

)

(5,238

)

248

 

(7,024

)

(6,342

)

#

 

(7,272

)

#

 

(3,894

)

#

 

Market appreciation (depreciation) and other (1)

 

1,586

 

1,398

 

(402

)

(2,646

)

2,251

 

4,813

 

601

 

665

 

42

%

(4,212

)

(88

)%

4,897

 

#

 

Total ending assets

 

80,709

 

81,752

 

81,263

 

77,273

 

74,286

 

80,709

 

74,286

 

(6,423

)

(8

)%

(6,423

)

(8

)%

(2,987

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

6,230

 

6,745

 

6,705

 

7,265

 

7,648

 

5,643

 

6,745

 

1,418

 

23

%

1,102

 

20

%

383

 

5

%

Inflows

 

625

 

151

 

588

 

709

 

67

 

1,686

 

1,515

 

(558

)

(89

)%

(171

)

(10

)%

(642

)

(91

)%

Outflows

 

(99

)

(134

)

(114

)

(227

)

(317

)

(696

)

(792

)

(218

)

#

 

(96

)

(14

)%

(90

)

(40

)%

Net flows

 

526

 

17

 

474

 

482

 

(250

)

990

 

723

 

(776

)

#

 

(267

)

(27

)%

(732

)

#

 

Market appreciation (depreciation) and other

 

(11

)

(57

)

86

 

(99

)

149

 

112

 

79

 

160

 

#

 

(33

)

(29

)%

248

 

#

 

Total ending assets

 

6,745

 

6,705

 

7,265

 

7,648

 

7,547

 

6,745

 

7,547

 

802

 

12

%

802

 

12

%

(101

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliated General Account Assets

 

36,084

 

36,228

 

35,157

 

35,414

 

34,463

 

36,084

 

34,463

 

(1,621

)

(4

)%

(1,621

)

(4

)%

(951

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Columbia managed assets

 

$

361,190

 

$

364,186

 

$

358,528

 

$

336,236

 

$

334,670

 

$

361,190

 

$

334,670

 

$

(26,520

)

(7

)%

$

(26,520

)

(7

)%

$

(1,566

)

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Columbia net flows

 

$

7,136

 

$

(3,199

)

$

(285

)

$

(4,994

)

$

(453

)

$

2,332

 

$

(8,931

)

$

(7,589

)

#

 

$

(11,263

)

#

 

$

4,541

 

91

%

 

(1)             Included in Market appreciation (depreciation) and other for Institutional funds in the 4th quarter of 2014 and the 2nd quarter of 2015 are ($0.3B) and ($0.1B), respectively, due to the transfer of assets from Separately Managed Accounts (SMAs) to Unified Managed Accounts (UMAs).

#      Variance equal to or greater than 100%.

 

17


 

Ameriprise Financial, Inc.

Asset Management Segment - Threadneedle

Fourth Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Threadneedle Managed Assets Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

48,235

 

$

46,523

 

$

47,124

 

$

48,853

 

$

44,526

 

$

50,620

 

$

46,523

 

$

(3,709

)

(8

)%

$

(4,097

)

(8

)%

$

(4,327

)

(9

)%

Mutual fund inflows

 

5,799

 

5,555

 

5,538

 

4,000

 

5,091

 

23,384

 

20,184

 

(708

)

(12

)%

(3,200

)

(14

)%

1,091

 

27

%

Mutual fund outflows

 

(6,322

)

(5,080

)

(4,757

)

(5,226

)

(3,715

)

(25,962

)

(18,778

)

2,607

 

41

%

7,184

 

28

%

1,511

 

29

%

Net new flows

 

(523

)

475

 

781

 

(1,226

)

1,376

 

(2,578

)

1,406

 

1,899

 

#

 

3,984

 

#

 

2,602

 

#

 

Reinvested dividends

 

71

 

33

 

21

 

36

 

69

 

175

 

159

 

(2

)

(3

)%

(16

)

(9

)%

33

 

92

%

Net flows

 

(452

)

508

 

802

 

(1,190

)

1,445

 

(2,403

)

1,565

 

1,897

 

#

 

3,968

 

#

 

2,635

 

#

 

Distributions

 

(237

)

(135

)

(186

)

(125

)

(230

)

(689

)

(676

)

7

 

3

%

13

 

2

%

(105

)

(84

)%

Market appreciation (depreciation)

 

807

 

2,381

 

(1,715

)

(1,434

)

2,530

 

790

 

1,762

 

1,723

 

#

 

972

 

#

 

3,964

 

#

 

Foreign currency translation (1)

 

(2,053

)

(2,345

)

2,999

 

(1,783

)

(1,089

)

(2,823

)

(2,218

)

964

 

47

%

605

 

21

%

694

 

39

%

Other (2)

 

223

 

192

 

(171

)

205

 

229

 

1,028

 

455

 

6

 

3

%

(573

)

(56

)%

24

 

12

%

Total ending assets

 

46,523

 

47,124

 

48,853

 

44,526

 

47,411

 

46,523

 

47,411

 

888

 

2

%

888

 

2

%

2,885

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

101,388

 

100,652

 

99,444

 

101,187

 

94,002

 

96,065

 

100,652

 

(7,386

)

(7

)%

4,587

 

5

%

(7,185

)

(7

)%

Inflows

 

1,778

 

1,919

 

3,022

 

1,923

 

3,044

 

13,281

 

9,908

 

1,266

 

71

%

(3,373

)

(25

)%

1,121

 

58

%

Outflows

 

(2,397

)

(3,542

)

(4,573

)

(4,365

)

(4,313

)

(10,803

)

(16,793

)

(1,916

)

(80

)%

(5,990

)

(55

)%

52

 

1

%

Net flows

 

(619

)

(1,623

)

(1,551

)

(2,442

)

(1,269

)

2,478

 

(6,885

)

(650

)

#

 

(9,363

)

#

 

1,173

 

48

%

Market appreciation (depreciation)

 

3,614

 

4,757

 

(3,923

)

(1,720

)

2,832

 

5,380

 

1,946

 

(782

)

(22

)%

(3,434

)

(64

)%

4,552

 

#

 

Foreign currency translation (1)

 

(4,312

)

(5,000

)

6,267

 

(3,728

)

(2,134

)

(6,138

)

(4,595

)

2,178

 

51

%

1,543

 

25

%

1,594

 

43

%

Other

 

581

 

658

 

950

 

705

 

617

 

2,867

 

2,930

 

36

 

6

%

63

 

2

%

(88

)

(12

)%

Total ending assets

 

100,652

 

99,444

 

101,187

 

94,002

 

94,048

 

100,652

 

94,048

 

(6,604

)

(7

)%

(6,604

)

(7

)%

46

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

752

 

708

 

667

 

676

 

624

 

758

 

708

 

(128

)

(17

)%

(50

)

(7

)%

(52

)

(8

)%

Inflows

 

—

 

11

 

2

 

1

 

—

 

25

 

14

 

—

 

—

 

(11

)

(44

)%

(1

)

#

 

Outflows

 

(2

)

(12

)

(9

)

(2

)

(2

)

(55

)

(25

)

—

 

—

 

30

 

55

%

—

 

—

 

Net flows

 

(2

)

(1

)

(7

)

(1

)

(2

)

(30

)

(11

)

—

 

—

 

19

 

63

%

(1

)

#

 

Market appreciation (depreciation)

 

(17

)

(13

)

(32

)

(32

)

36

 

(15

)

(41

)

53

 

#

 

(26

)

#

 

68

 

#

 

Foreign currency translation (1)

 

(32

)

(33

)

42

 

(24

)

(13

)

(44

)

(28

)

19

 

59

%

16

 

36

%

11

 

46

%

Other

 

7

 

6

 

6

 

5

 

6

 

39

 

23

 

(1

)

(14

)%

(16

)

(41

)%

1

 

20

%

Total ending assets

 

708

 

667

 

676

 

624

 

651

 

708

 

651

 

(57

)

(8

)%

(57

)

(8

)%

27

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Threadneedle managed assets

 

$

147,883

 

$

147,235

 

$

150,716

 

$

139,152

 

$

142,110

 

$

147,883

 

$

142,110

 

$

(5,773

)

(4

)%

$

(5,773

)

(4

)%

$

2,958

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Threadneedle net flows

 

$

(1,073

)

$

(1,116

)

$

(756

)

$

(3,633

)

$

174

 

$

45

 

$

(5,331

)

$

1,247

 

#

 

$

(5,376

)

#

 

$

3,807

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Threadneedle net flows excluding legacy insurance mandates

 

$

(286

)

$

(303

)

$

1,903

 

$

(2,823

)

$

925

 

$

3,447

 

$

(298

)

$

1,211

 

#

 

$

(3,745

)

#

 

$

3,748

 

#

 

 

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

(2)        Included in Other for retail funds in the 2nd quarter of 2015 are ($0.5B) related to the sale of the Multi-Manager business.

#            Variance equal to or greater than 100%.

 

18


 

Ameriprise Financial, Inc.

Asset Management Segment - Columbia

Fourth Quarter 2015

 

Mutual Fund Rankings in top 2 Lipper Quartiles

 

 

 

 

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

Domestic Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

61

%

55

%

59

%

57

%

68

%

 

 

3 year

 

68

%

65

%

65

%

65

%

68

%

 

 

5 year

 

57

%

54

%

65

%

57

%

57

%

Asset weighted

 

1 year

 

58

%

61

%

64

%

59

%

77

%

 

 

3 year

 

62

%

64

%

68

%

72

%

76

%

 

 

5 year

 

62

%

63

%

74

%

70

%

74

%

International Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

50

%

71

%

77

%

68

%

55

%

 

 

3 year

 

68

%

67

%

77

%

73

%

82

%

 

 

5 year

 

65

%

63

%

70

%

70

%

65

%

Asset weighted

 

1 year

 

74

%

84

%

48

%

35

%

33

%

 

 

3 year

 

45

%

41

%

47

%

42

%

46

%

 

 

5 year

 

45

%

41

%

45

%

40

%

41

%

Taxable Fixed Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

50

%

65

%

58

%

58

%

68

%

 

 

3 year

 

61

%

75

%

65

%

59

%

47

%

 

 

5 year

 

65

%

75

%

71

%

71

%

65

%

Asset weighted

 

1 year

 

71

%

77

%

69

%

72

%

73

%

 

 

3 year

 

83

%

84

%

85

%

82

%

52

%

 

 

5 year

 

83

%

84

%

86

%

85

%

80

%

Tax Exempt Fixed Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

89

%

89

%

94

%

94

%

83

%

 

 

3 year

 

100

%

100

%

100

%

100

%

100

%

 

 

5 year

 

100

%

100

%

100

%

100

%

100

%

Asset weighted

 

1 year

 

78

%

84

%

99

%

99

%

97

%

 

 

3 year

 

100

%

100

%

100

%

100

%

100

%

 

 

5 year

 

100

%

100

%

100

%

100

%

100

%

Asset Allocation Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

58

%

82

%

80

%

90

%

90

%

 

 

3 year

 

64

%

78

%

56

%

67

%

78

%

 

 

5 year

 

89

%

89

%

88

%

88

%

88

%

Asset weighted

 

1 year

 

67

%

89

%

96

%

100

%

100

%

 

 

3 year

 

76

%

77

%

62

%

73

%

79

%

 

 

5 year

 

97

%

97

%

97

%

97

%

98

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of 4- or 5-star Morningstar rated funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall

 

 

 

51

 

48

 

53

 

51

 

55

 

3 year

 

 

 

42

 

43

 

51

 

52

 

57

 

5 year

 

 

 

46

 

50

 

48

 

44

 

45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of 4- or 5-star Morningstar rated funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall

 

 

 

49

%

48

%

52

%

50

%

54

%

3 year

 

 

 

40

%

43

%

50

%

51

%

56

%

5 year

 

 

 

47

%

53

%

51

%

46

%

47

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of 4- or 5-star Morningstar rated assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall

 

 

 

55

%

56

%

58

%

58

%

66

%

3 year

 

 

 

35

%

40

%

48

%

57

%

66

%

5 year

 

 

 

54

%

57

%

55

%

54

%

57

%

 

Mutual fund performance rankings are based on the performance of Class Z fund shares for Columbia branded mutual funds.  Only funds with Class Z shares are included.  In instances where a fund’s Class Z share does not have a full five year track record (prior to 9-30-15), 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.  Starting 9-30-2015, legacy RiverSource funds have reached 5 years of Z share performance and will not be appended.  Historical rankings will continue to be appended.

 

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

 

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

 

19


 

Ameriprise Financial, Inc.

Asset Management Segment - Threadneedle

Fourth Quarter 2015

 

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

 

 

 

 

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

61

%

71

%

71

%

71

%

65

%

 

 

3 year

 

64

%

68

%

72

%

74

%

74

%

 

 

5 year

 

83

%

83

%

81

%

84

%

76

%

Asset weighted

 

1 year

 

63

%

78

%

63

%

67

%

68

%

 

 

3 year

 

59

%

61

%

58

%

68

%

71

%

 

 

5 year

 

86

%

87

%

86

%

93

%

84

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

65

%

65

%

52

%

56

%

56

%

 

 

3 year

 

68

%

59

%

64

%

68

%

45

%

 

 

5 year

 

68

%

68

%

70

%

71

%

67

%

Asset weighted

 

1 year

 

65

%

63

%

50

%

66

%

81

%

 

 

3 year

 

71

%

37

%

39

%

69

%

72

%

 

 

5 year

 

51

%

47

%

52

%

59

%

61

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocation (Managed) Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

57

%

75

%

63

%

63

%

75

%

 

 

3 year

 

83

%

83

%

67

%

86

%

86

%

 

 

5 year

 

83

%

83

%

83

%

83

%

100

%

Asset weighted

 

1 year

 

68

%

79

%

75

%

73

%

86

%

 

 

3 year

 

93

%

93

%

55

%

93

%

92

%

 

 

5 year

 

93

%

93

%

93

%

93

%

100

%

 

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

 

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

 

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

 

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

 

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

 

20


 

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2015

 

Annuities Segment

 

21


 

Ameriprise Financial, Inc.

Annuities Segment

Fourth Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

193

 

$

190

 

$

192

 

$

187

 

$

186

 

$

756

 

$

755

 

$

(7

)

(4

)%

$

(1

)

—

 

$

(1

)

(1

)%

Distribution fees

 

90

 

89

 

94

 

91

 

90

 

360

 

364

 

—

 

—

 

4

 

1

%

(1

)

(1

)%

Net investment income

 

230

 

221

 

218

 

208

 

201

 

941

 

848

 

(29

)

(13

)%

(93

)

(10

)%

(7

)

(3

)%

Premiums

 

25

 

22

 

30

 

25

 

30

 

109

 

107

 

5

 

20

%

(2

)

(2

)%

5

 

20

%

Other revenues

 

111

 

109

 

117

 

121

 

120

 

425

 

467

 

9

 

8

%

42

 

10

%

(1

)

(1

)%

Total revenues

 

649

 

631

 

651

 

632

 

627

 

2,591

 

2,541

 

(22

)

(3

)%

(50

)

(2

)%

(5

)

(1

)%

Banking and deposit interest expense

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Operating total net revenues

 

649

 

631

 

651

 

632

 

627

 

2,591

 

2,541

 

(22

)

(3

)%

(50

)

(2

)%

(5

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

113

 

108

 

116

 

111

 

111

 

439

 

446

 

(2

)

(2

)%

7

 

2

%

—

 

—

 

Interest credited to fixed accounts

 

133

 

127

 

125

 

125

 

123

 

556

 

500

 

(10

)

(8

)%

(56

)

(10

)%

(2

)

(2

)%

Benefits, claims, losses and settlement expenses

 

128

 

115

 

135

 

89

 

143

 

463

 

482

 

15

 

12

%

19

 

4

%

54

 

61

%

Amortization of deferred acquisition costs

 

52

 

43

 

59

 

66

 

37

 

235

 

205

 

(15

)

(29

)%

(30

)

(13

)%

(29

)

(44

)%

Interest and debt expense

 

10

 

10

 

9

 

10

 

9

 

38

 

38

 

(1

)

(10

)%

—

 

—

 

(1

)

(10

)%

General and administrative expense

 

54

 

56

 

57

 

55

 

52

 

227

 

220

 

(2

)

(4

)%

(7

)

(3

)%

(3

)

(5

)%

Operating expenses

 

490

 

459

 

501

 

456

 

475

 

1,958

 

1,891

 

(15

)

(3

)%

(67

)

(3

)%

19

 

4

%

Pretax operating earnings

 

$

159

 

$

172

 

$

150

 

$

176

 

$

152

 

$

633

 

$

650

 

$

(7

)

(4

)%

$

17

 

3

%

$

(24

)

(14

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

24.5

%

27.3

%

23.0

%

27.8

%

24.2

%

24.4

%

25.6

%

(0.3

)%

 

 

1.2

%

 

 

(3.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,982

 

$

1,987

 

$

1,941

 

$

1,900

 

$

1,893

 

$

1,982

 

$

1,893

 

$

(89

)

(4

)%

$

(89

)

(4

)%

$

(7

)

—

 

Operating return on allocated capital (1)

 

19.3

%

20.7

%

22.1

%

25.6

%

25.5

%

19.3

%

25.5

%

6.2

%

 

 

6.2

%

 

 

(0.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market impact on variable annuity guaranteed benefits (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk margin and nonperformance spread impact

 

$

7

 

$

17

 

$

(5

)

$

98

 

$

(61

)

$

13

 

$

49

 

$

(68

)

#

 

$

36

 

#

 

$

(159

)

#

 

Other

 

(41

)

(51

)

(31

)

(103

)

(78

)

(107

)

(263

)

(37

)

(90

)%

(156

)

#

 

25

 

24

%

Total VA guaranteed benefit impact excluded from operating earnings

 

$

(34

)

$

(34

)

$

(36

)

$

(5

)

$

(139

)

$

(94

)

$

(214

)

$

(105

)

#

 

$

(120

)

#

 

$

(134

)

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total annuity net flows

 

$

(721

)

$

(950

)

$

(901

)

$

(634

)

$

(541

)

$

(3,192

)

$

(3,026

)

$

180

 

25

%

$

166

 

5

%

$

93

 

15

%

 

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

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

#                 Variance equal to or greater than 100%.

 

22


 

Ameriprise Financial, Inc.

Annuities Segment

Fourth Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

 Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2014

 

1 Qtr 2014

 

2 Qtr 2014

 

3 Qtr 2015

 

4 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

123

 

$

144

 

$

120

 

$

151

 

$

129

 

$

489

 

$

544

 

$

6

 

5

%

$

55

 

11

%

$

(22

)

(15

)%

Allocated capital (1)

 

$

644

 

$

650

 

$

650

 

$

650

 

$

650

 

$

644

 

$

650

 

$

6

 

1

%

$

6

 

1

%

$

—

 

—

 

Operating return on allocated capital (2)

 

34.8

%

41.2

%

48.0

%

64.8

%

63.9

%

34.8

%

63.9

%

29.1

%

 

 

29.1

%

 

 

(0.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Annuities (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

36

 

$

28

 

$

30

 

$

25

 

$

23

 

$

144

 

$

106

 

$

(13

)

(36

)%

$

(38

)

(26

)%

$

(2

)

(8

)%

Allocated capital

 

$

1,338

 

$

1,337

 

$

1,291

 

$

1,250

 

$

1,243

 

$

1,338

 

$

1,243

 

$

(95

)

(7

)%

$

(95

)

(7

)%

$

(7

)

(1

)%

Operating return on allocated capital (2)

 

7.7

%

7.6

%

7.9

%

6.9

%

6.2

%

7.7

%

6.2

%

(1.5

)%

 

 

(1.5

)%

 

 

(0.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

76,141

 

$

76,988

 

$

77,934

 

$

77,137

 

$

72,843

 

$

75,522

 

$

76,988

 

$

(3,298

)

(4

)%

$

1,466

 

2

%

$

(4,294

)

(6

)%

Deposits

 

1,200

 

1,182

 

1,366

 

1,340

 

1,340

 

4,867

 

5,228

 

140

 

12

%

361

 

7

%

—

 

—

 

Withdrawals and terminations

 

(1,606

)

(1,567

)

(1,704

)

(1,599

)

(1,585

)

(6,555

)

(6,455

)

21

 

1

%

100

 

2

%

14

 

1

%

Net flows

 

(406

)

(385

)

(338

)

(259

)

(245

)

(1,688

)

(1,227

)

161

 

40

%

461

 

27

%

14

 

5

%

Investment performance and interest credited

 

1,253

 

1,331

 

(459

)

(4,035

)

1,646

 

3,154

 

(1,517

)

393

 

31

%

(4,671

)

#

 

5,681

 

#

 

Total ending balance - contract accumulation values

 

$

76,988

 

$

77,934

 

$

77,137

 

$

72,843

 

$

74,244

 

$

76,988

 

$

74,244

 

$

(2,744

)

(4

)%

$

(2,744

)

(4

)%

$

1,401

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable annuities fixed sub-accounts

 

$

4,860

 

$

4,848

 

$

4,874

 

$

4,913

 

$

4,911

 

$

4,860

 

$

4,911

 

$

51

 

1

%

$

51

 

1

%

$

(2

)

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Annuities Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

12,360

 

$

12,137

 

$

11,658

 

$

11,179

 

$

10,886

 

$

13,252

 

$

12,137

 

$

(1,474

)

(12

)%

$

(1,115

)

(8

)%

$

(293

)

(3

)%

Deposits

 

37

 

36

 

35

 

52

 

63

 

177

 

186

 

26

 

70

%

9

 

5

%

11

 

21

%

Withdrawals and terminations

 

(352

)

(601

)

(598

)

(427

)

(359

)

(1,681

)

(1,985

)

(7

)

(2

)%

(304

)

(18

)%

68

 

16

%

Net flows

 

(315

)

(565

)

(563

)

(375

)

(296

)

(1,504

)

(1,799

)

19

 

6

%

(295

)

(20

)%

79

 

21

%

Policyholder interest credited

 

92

 

86

 

84

 

82

 

83

 

389

 

335

 

(9

)

(10

)%

(54

)

(14

)%

1

 

1

%

Total ending balance - contract accumulation values

 

$

12,137

 

$

11,658

 

$

11,179

 

$

10,886

 

$

10,673

 

$

12,137

 

$

10,673

 

$

(1,464

)

(12

)%

$

(1,464

)

(12

)%

$

(213

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized interest

 

$

1

 

$

1

 

$

—

 

$

1

 

$

—

 

$

3

 

$

2

 

$

(1

)

#

 

$

(1

)

(33

)%

$

(1

)

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payout Annuities Reserve Balance

 

$

2,103

 

$

2,088

 

$

2,088

 

$

2,090

 

$

2,094

 

$

2,103

 

$

2,094

 

$

(9

)

—

 

$

(9

)

—

 

$

4

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Equivalent Spread - Fixed Annuities (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross rate of return on invested assets (5)

 

4.9

%

4.7

%

4.8

%

4.7

%

4.7

%

4.9

%

4.7

%

(0.2

)%

 

 

(0.2

)%

 

 

—

 

 

 

Crediting rate excluding capitalized interest

 

(3.0

)%

(3.0

)%

(3.0

)%

(3.0

)%

(3.0

)%

(3.0

)%

(3.0

)%

—

 

 

 

—

 

 

 

—

 

 

 

Tax equivalent margin spread

 

1.9

%

1.7

%

1.8

%

1.7

%

1.7

%

1.9

%

1.7

%

(0.2

)%

 

 

(0.2

)%

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Variable Annuities DAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,655

 

$

1,663

 

$

1,670

 

$

1,684

 

$

1,665

 

$

1,690

 

$

1,663

 

$

10

 

1

%

$

(27

)

(2

)%

$

(19

)

(1

)%

Capitalization

 

42

 

39

 

50

 

48

 

49

 

169

 

186

 

7

 

17

%

17

 

10

%

1

 

2

%

Non-operating amortization

 

6

 

4

 

4

 

(7

)

26

 

9

 

27

 

20

 

#

 

18

 

#

 

33

 

#

 

Amortization per income statement

 

(43

)

(33

)

(51

)

(62

)

(32

)

(205

)

(178

)

11

 

26

%

27

 

13

%

30

 

48

%

Other

 

3

 

(3

)

11

 

2

 

10

 

—

 

20

 

7

 

#

 

20

 

—

 

8

 

#

 

Total ending balance

 

$

1,663

 

$

1,670

 

$

1,684

 

$

1,665

 

$

1,718

 

$

1,663

 

$

1,718

 

$

55

 

3

%

$

55

 

3

%

$

53

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Annuities DAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

68

 

$

67

 

$

59

 

$

69

 

$

72

 

$

88

 

$

67

 

$

4

 

6

%

$

(21

)

(24

)%

$

3

 

4

%

Capitalization

 

1

 

1

 

—

 

1

 

1

 

3

 

3

 

—

 

—

 

—

 

—

 

—

 

—

 

Non-operating amortization

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Amortization per income statement

 

(9

)

(10

)

(8

)

(4

)

(5

)

(30

)

(27

)

4

 

44

%

3

 

10

%

(1

)

(25

)%

Other

 

7

 

1

 

18

 

6

 

19

 

6

 

44

 

12

 

#

 

38

 

#

 

13

 

#

 

Total ending balance

 

$

67

 

$

59

 

$

69

 

$

72

 

$

87

 

$

67

 

$

87

 

$

20

 

30

%

$

20

 

30

%

$

15

 

21

%

 

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

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

(3)     Includes payout annuities.

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

(5)     In the 4th quarter of 2014 through the 4th quarter of 2015, the Gross rates of return on invested assets were impacted by outstanding repurchase agreements.  Without these positions, the Gross rates of return on invested assets would have been 4.8%, 4.6%, 4.7%, 4.6% and 4.6% respectively.

# Variance equal to or greater than 100%.

 

23


 

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2015

 

Protection Segment

 

24


 

Ameriprise Financial, Inc.

Protection Segment

Fourth Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

15

 

$

15

 

$

13

 

$

14

 

$

13

 

$

59

 

$

55

 

$

(2

)

(13

)%

$

(4

)

(7

)%

$

(1

)

(7

)%

Distribution fees

 

23

 

23

 

24

 

24

 

26

 

92

 

97

 

3

 

13

%

5

 

5

%

2

 

8

%

Net investment income

 

115

 

114

 

118

 

118

 

118

 

447

 

468

 

3

 

3

%

21

 

5

%

—

 

—

 

Premiums

 

338

 

335

 

341

 

339

 

348

 

1,292

 

1,363

 

10

 

3

%

71

 

5

%

9

 

3

%

Other revenues

 

109

 

103

 

104

 

91

 

103

 

397

 

401

 

(6

)

(6

)%

4

 

1

%

12

 

13

%

Total revenues

 

600

 

590

 

600

 

586

 

608

 

2,287

 

2,384

 

8

 

1

%

97

 

4

%

22

 

4

%

Banking and deposit interest expense

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Operating total net revenues

 

600

 

590

 

600

 

586

 

608

 

2,287

 

2,384

 

8

 

1

%

97

 

4

%

22

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

17

 

13

 

16

 

12

 

18

 

61

 

59

 

1

 

6

%

(2

)

(3

)%

6

 

50

%

Interest credited to fixed accounts

 

39

 

40

 

39

 

42

 

43

 

153

 

164

 

4

 

10

%

11

 

7

%

1

 

2

%

Benefits, claims, losses and settlement expenses

 

400

 

380

 

368

 

384

 

406

 

1,416

 

1,538

 

6

 

2

%

122

 

9

%

22

 

6

%

Amortization of deferred acquisition costs

 

45

 

36

 

35

 

50

 

34

 

135

 

155

 

(11

)

(24

)%

20

 

15

%

(16

)

(32

)%

Interest and debt expense

 

8

 

8

 

8

 

9

 

7

 

28

 

32

 

(1

)

(13

)%

4

 

14

%

(2

)

(22

)%

General and administrative expense

 

61

 

62

 

62

 

64

 

65

 

248

 

253

 

4

 

7

%

5

 

2

%

1

 

2

%

Operating expenses

 

570

 

539

 

528

 

561

 

573

 

2,041

 

2,201

 

3

 

1

%

160

 

8

%

12

 

2

%

Pretax operating earnings

 

$

30

 

$

51

 

$

72

 

$

25

 

$

35

 

$

246

 

$

183

 

$

5

 

17

%

$

(63

)

(26

)%

$

10

 

40

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

5.0

%

8.6

%

12.0

%

4.3

%

5.8

%

10.8

%

7.7

%

0.8

%

 

 

(3.1

)%

 

 

1.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,962

 

$

1,975

 

$

2,014

 

$

2,009

 

$

2,045

 

$

1,962

 

$

2,045

 

$

83

 

4

%

$

83

 

4

%

$

36

 

2

%

Operating return on allocated capital (1)

 

9.6

%

9.1

%

8.4

%

6.8

%

6.9

%

9.6

%

6.9

%

(2.7

)%

 

 

(2.7

)%

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market impact on indexed universal life benefits (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk margin and nonperformance spread impact

 

$

1

 

$

—

 

$

(1

)

$

(6

)

$

7

 

$

13

 

$

—

 

$

6

 

#

 

$

(13

)

#

 

$

13

 

#

 

Other

 

(16

)

(6

)

6

 

5

 

(6

)

(19

)

(1

)

10

 

63

%

18

 

95

%

(11

)

#

 

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

 

$

(15

)

$

(6

)

$

5

 

$

(1

)

$

1

 

$

(6

)

$

(1

)

$

16

 

#

 

$

5

 

83

%

$

2

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long Term Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

—

 

$

(31

)

$

15

 

$

7

 

$

(6

)

$

5

 

$

(15

)

$

(6

)

—

 

$

(20

)

#

 

$

(13

)

#

 

Allocated capital

 

$

536

 

$

556

 

$

580

 

$

568

 

$

591

 

$

536

 

$

591

 

$

55

 

10

%

$

55

 

10

%

$

23

 

4

%

Operating return on allocated capital (1)

 

0.7

%

(4.7

)%

(2.8

)%

(1.1

)%

(1.9

)%

0.7

%

(1.9

)%

(2.6

)%

 

 

(2.6

)%

 

 

(0.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Protection excluding Long Term Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

30

 

$

82

 

$

57

 

$

18

 

$

41

 

$

241

 

$

198

 

$

11

 

37

%

$

(43

)

(18

)%

$

23

 

#

 

Allocated capital

 

$

1,426

 

$

1,419

 

$

1,434

 

$

1,441

 

$

1,454

 

$

1,426

 

$

1,454

 

$

28

 

2

%

$

28

 

2

%

$

13

 

1

%

Operating return on allocated capital (1)

 

13.1

%

14.4

%

12.7

%

9.9

%

10.4

%

13.1

%

10.4

%

(2.7

)%

 

 

(2.7

)%

 

 

0.5

%

 

 

 

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

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

# Variance equal to or greater than 100%.

 

25


 

Ameriprise Financial, Inc.

Protection Segment

Fourth Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL (1)

 

$

85

 

$

66

 

$

86

 

$

81

 

$

91

 

$

326

 

$

324

 

$

6

 

7

%

$

(2

)

(1

)%

$

10

 

12

%

Term and whole life

 

3

 

2

 

2

 

2

 

3

 

10

 

9

 

—

 

—

 

(1

)

(10

)%

1

 

50

%

Disability insurance

 

1

 

1

 

1

 

1

 

2

 

5

 

5

 

1

 

#

 

—

 

—

 

1

 

#

 

Auto and home

 

251

 

262

 

270

 

288

 

267

 

1,017

 

1,087

 

16

 

6

%

70

 

7

%

(21

)

(7

)%

Total cash sales

 

$

340

 

$

331

 

$

359

 

$

372

 

$

363

 

$

1,358

 

$

1,425

 

$

23

 

7

%

$

67

 

5

%

$

(9

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL Policyholder Account Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

11,124

 

$

11,283

 

$

11,421

 

$

11,408

 

$

10,931

 

$

10,906

 

$

11,283

 

$

(193

)

(2

)%

$

377

 

3

%

$

(477

)

(4

)%

Premiums and deposits

 

266

 

246

 

260

 

255

 

281

 

1,033

 

1,042

 

15

 

6

%

9

 

1

%

26

 

10

%

Investment performance and interest

 

190

 

186

 

30

 

(431

)

260

 

516

 

45

 

70

 

37

%

(471

)

(91

)%

691

 

#

 

Withdrawals and surrenders

 

(296

)

(294

)

(304

)

(301

)

(300

)

(1,171

)

(1,199

)

(4

)

(1

)%

(28

)

(2

)%

1

 

—

 

Other

 

(1

)

—

 

1

 

—

 

(2

)

(1

)

(1

)

(1

)

#

 

—

 

—

 

(2

)

—

 

Total ending balance

 

$

11,283

 

$

11,421

 

$

11,408

 

$

10,931

 

$

11,170

 

$

11,283

 

$

11,170

 

$

(113

)

(1

)%

$

(113

)

(1

)%

$

239

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums by Product

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term and whole life

 

$

12

 

$

11

 

$

12

 

$

6

 

$

11

 

$

48

 

$

40

 

$

(1

)

(8

)%

$

(8

)

(17

)%

$

5

 

83

%

Disability insurance

 

38

 

37

 

38

 

37

 

37

 

153

 

149

 

(1

)

(3

)%

(4

)

(3

)%

—

 

—

 

Long term care

 

30

 

27

 

27

 

27

 

29

 

114

 

110

 

(1

)

(3

)%

(4

)

(4

)%

2

 

7

%

Auto and home

 

253

 

254

 

259

 

264

 

266

 

955

 

1,043

 

13

 

5

%

88

 

9

%

2

 

1

%

Intercompany premiums

 

5

 

6

 

5

 

5

 

5

 

22

 

21

 

—

 

—

 

(1

)

(5

)%

—

 

—

 

Total premiums by product

 

$

338

 

$

335

 

$

341

 

$

339

 

$

348

 

$

1,292

 

$

1,363

 

$

10

 

3

%

$

71

 

5

%

$

9

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto and Home Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy count (thousands)

 

929

 

943

 

952

 

958

 

957

 

929

 

957

 

28

 

3

%

28

 

3

%

(1

)

—

 

Loss ratio

 

106.2

%

90.1

%

97.5

%

93.2

%

109.7

%

95.6

%

97.7

%

3.5

%

 

 

2.1

%

 

 

16.5

%

 

 

Expense ratio

 

15.6

%

15.5

%

15.9

%

15.0

%

16.6

%

15.3

%

15.8

%

1.0

%

 

 

0.5

%

 

 

1.6

%

 

 

Combined ratio

 

121.8

%

105.6

%

113.4

%

108.2

%

126.3

%

110.9

%

113.5

%

4.5

%

 

 

2.6

%

 

 

18.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DAC Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life and Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

854

 

$

851

 

$

845

 

$

876

 

$

867

 

$

859

 

$

851

 

$

13

 

2

%

$

(8

)

(1

)%

$

(9

)

(1

)%

Capitalization

 

22

 

20

 

20

 

22

 

24

 

88

 

86

 

2

 

9

%

(2

)

(2

)%

2

 

9

%

Non-operating amortization

 

8

 

3

 

1

 

(6

)

(2

)

9

 

(4

)

(10

)

#

 

(13

)

#

 

4

 

67

%

Amortization per income statement

 

(29

)

(20

)

(19

)

(34

)

(17

)

(75

)

(90

)

12

 

41

%

(15

)

(20

)%

17

 

50

%

Other

 

(4

)

(9

)

29

 

9

 

17

 

(30

)

46

 

21

 

#

 

76

 

#

 

8

 

89

%

Total ending balance

 

$

851

 

$

845

 

$

876

 

$

867

 

$

889

 

$

851

 

$

889

 

$

38

 

4

%

$

38

 

4

%

$

22

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life Insurance in Force

 

$

195,510

 

$

195,694

 

$

195,838

 

$

195,862

 

$

196,339

 

$

195,510

 

$

196,339

 

$

829

 

—

 

$

829

 

—

 

$

477

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Amount at Risk

 

$

40,552

 

$

40,331

 

$

40,340

 

$

40,789

 

$

40,783

 

$

40,552

 

$

40,783

 

$

231

 

1

%

$

231

 

1

%

$

(6

)

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Policyholder Reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL

 

$

10,476

 

$

10,631

 

$

10,621

 

$

10,148

 

$

10,380

 

$

10,476

 

$

10,380

 

$

(96

)

(1

)%

$

(96

)

(1

)%

$

232

 

2

%

Term and whole life

 

216

 

215

 

214

 

213

 

207

 

216

 

207

 

(9

)

(4

)%

(9

)

(4

)%

(6

)

(3

)%

Disability insurance

 

538

 

532

 

533

 

527

 

527

 

538

 

527

 

(11

)

(2

)%

(11

)

(2

)%

—

 

—

 

Long term care and other

 

2,738

 

2,778

 

2,766

 

2,770

 

2,788

 

2,738

 

2,788

 

50

 

2

%

50

 

2

%

18

 

1

%

Auto and home loss and LAE reserves

 

473

 

493

 

507

 

504

 

569

 

473

 

569

 

96

 

20

%

96

 

20

%

65

 

13

%

Total net policyholder reserves

 

$

14,441

 

$

14,649

 

$

14,641

 

$

14,162

 

$

14,471

 

$

14,441

 

$

14,471

 

$

30

 

—

 

$

30

 

—

 

$

309

 

2

%

 

(1) Includes lump sum deposits.

# Variance equal to or greater than 100%.

 

26


 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2015

 

Corporate & Other Segment

 

27


 

Ameriprise Financial, Inc.

Corporate & Other Segment

Fourth Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

—

 

$

—

 

—

 

$

—

 

—

 

Distribution fees

 

—

 

—

 

—

 

—

 

—

 

1

 

—

 

—

 

—

 

(1

)

#

 

—

 

—

 

Net investment income

 

(2

)

(7

)

(10

)

(5

)

12

 

(6

)

(10

)

14

 

#

 

(4

)

(67

)%

17

 

#

 

Premiums

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Other revenues

 

3

 

1

 

8

 

1

 

3

 

9

 

13

 

—

 

—

 

4

 

44

%

2

 

#

 

Total revenues

 

1

 

(6

)

(2

)

(4

)

15

 

4

 

3

 

14

 

#

 

(1

)

(25

)%

19

 

#

 

Banking and deposit interest expense

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Operating total net revenues

 

1

 

(6

)

(2

)

(4

)

15

 

4

 

3

 

14

 

#

 

(1

)

(25

)%

19

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

—

 

—

 

—

 

—

 

—

 

1

 

—

 

—

 

—

 

(1

)

#

 

—

 

—

 

Interest credited to fixed accounts

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Benefits, claims, losses and settlement expenses

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Amortization of deferred acquisition costs

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Interest and debt expense

 

5

 

5

 

4

 

3

 

10

 

21

 

22

 

5

 

#

 

1

 

5

%

7

 

#

 

General and administrative expense

 

43

 

51

 

51

 

35

 

43

 

212

 

180

 

—

 

—

 

(32

)

(15

)%

8

 

23

%

Operating expenses

 

48

 

56

 

55

 

38

 

53

 

234

 

202

 

5

 

10

%

(32

)

(14

)%

15

 

39

%

Pretax operating loss

 

$

(47

)

$

(62

)

$

(57

)

$

(42

)

$

(38

)

$

(230

)

$

(199

)

$

9

 

19

%

$

31

 

13

%

$

4

 

10

%

 

# Variance equal to or greater than 100%.

 

28


 

Ameriprise Financial, Inc.

Eliminations (1)

Fourth Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

(34

)

$

(34

)

$

(34

)

$

(35

)

$

(34

)

$

(135

)

$

(137

)

$

—

 

—

 

$

(2

)

(1

)%

$

1

 

3

%

Distribution fees

 

(325

)

(314

)

(335

)

(327

)

(332

)

(1,265

)

(1,308

)

(7

)

(2

)%

(43

)

(3

)%

(5

)

(2

)%

Net investment income

 

(1

)

—

 

—

 

—

 

(1

)

(1

)

(1

)

—

 

—

 

—

 

—

 

(1

)

—

 

Premiums

 

(4

)

(4

)

(3

)

(4

)

(4

)

(16

)

(15

)

—

 

—

 

1

 

6

%

—

 

—

 

Other revenues

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Total revenues

 

(364

)

(352

)

(372

)

(366

)

(371

)

(1,417

)

(1,461

)

(7

)

(2

)%

(44

)

(3

)%

(5

)

(1

)%

Banking and deposit interest expense

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Operating total net revenues

 

(364

)

(352

)

(372

)

(366

)

(371

)

(1,417

)

(1,461

)

(7

)

(2

)%

(44

)

(3

)%

(5

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

(348

)

(337

)

(358

)

(351

)

(355

)

(1,356

)

(1,401

)

(7

)

(2

)%

(45

)

(3

)%

(4

)

(1

)%

Interest credited to fixed accounts

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Benefits, claims, losses and settlement expenses

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Amortization of deferred acquisition costs

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Interest and debt expense

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

General and administrative expense

 

(16

)

(15

)

(14

)

(15

)

(16

)

(61

)

(60

)

—

 

—

 

1

 

2

%

(1

)

(7

)%

Operating expenses

 

(364

)

(352

)

(372

)

(366

)

(371

)

(1,417

)

(1,461

)

(7

)

(2

)%

(44

)

(3

)%

(5

)

(1

)%

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)

 

Fourth Quarter 2015

 

Balance Sheet and Ratings Information

 

30


 

Ameriprise Financial, Inc.

Consolidated Balance Sheets

Fourth Quarter 2015

 

(in millions, unaudited)

 

December 31, 2014

 

March 31, 2015

 

June 30, 2015

 

September 30, 2015

 

December 31, 2015

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,638

 

$

2,809

 

$

2,570

 

$

2,780

 

$

2,357

 

Cash of consolidated investment entities

 

390

 

338

 

471

 

790

 

502

 

Investments

 

35,582

 

35,726

 

34,896

 

34,746

 

34,144

 

Investments of consolidated investment entities

 

6,148

 

6,090

 

6,594

 

6,977

 

6,570

 

Separate account assets

 

83,256

 

84,243

 

83,704

 

78,636

 

80,349

 

Receivables

 

4,887

 

5,063

 

5,178

 

5,187

 

5,167

 

Receivables of consolidated investment entities

 

140

 

77

 

89

 

102

 

107

 

Deferred acquisition costs

 

2,608

 

2,602

 

2,658

 

2,634

 

2,725

 

Restricted and segregated cash and investments

 

2,614

 

2,714

 

2,491

 

2,703

 

2,949

 

Other assets

 

8,611

 

9,896

 

8,166

 

8,625

 

8,316

 

Other assets of consolidated investment entities

 

1,936

 

1,890

 

1,989

 

2,140

 

2,073

 

Total Assets

 

$

148,810

 

$

151,448

 

$

148,806

 

$

145,320

 

$

145,259

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Policyholder account balances, future policy benefits and claims

 

$

30,350

 

$

30,482

 

$

29,345

 

$

30,046

 

$

29,699

 

Separate account liabilities

 

83,256

 

84,243

 

83,704

 

78,636

 

80,349

 

Customer deposits

 

7,664

 

7,878

 

7,820

 

8,046

 

8,634

 

Short-term borrowings

 

200

 

200

 

200

 

200

 

200

 

Long-term debt

 

3,062

 

3,066

 

3,055

 

3,019

 

2,707

 

Debt of consolidated investment entities

 

6,867

 

6,779

 

7,353

 

7,926

 

7,539

 

Accounts payable and accrued expenses

 

1,482

 

1,275

 

1,341

 

1,435

 

1,552

 

Accounts payable and accrued expenses of consolidated investment entities

 

41

 

46

 

53

 

62

 

54

 

Other liabilities

 

6,357

 

8,068

 

6,669

 

6,567

 

5,882

 

Other liabilities of consolidated investment entities

 

226

 

152

 

270

 

562

 

238

 

Total Liabilities

 

139,505

 

142,189

 

139,810

 

136,499

 

136,854

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial

 

 

 

 

 

 

 

 

 

 

 

Common shares ($.01 par)

 

3

 

3

 

3

 

3

 

3

 

Additional paid-in capital

 

7,345

 

7,423

 

7,500

 

7,557

 

7,611

 

Retained earnings

 

8,469

 

8,752

 

9,043

 

9,319

 

9,551

 

Appropriated retained earnings of consolidated investment entities

 

234

 

279

 

257

 

174

 

137

 

Treasury stock

 

(8,589

)

(8,966

)

(9,428

)

(9,885

)

(10,338

)

Accumulated other comprehensive income, net of tax

 

662

 

704

 

500

 

461

 

253

 

Total Ameriprise Financial Shareholders’ Equity

 

8,124

 

8,195

 

7,875

 

7,629

 

7,217

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests

 

1,181

 

1,064

 

1,121

 

1,192

 

1,188

 

Total Equity

 

9,305

 

9,259

 

8,996

 

8,821

 

8,405

 

Total Liabilities and Equity

 

$

148,810

 

$

151,448

 

$

148,806

 

$

145,320

 

$

145,259

 

 

31


 

Ameriprise Financial, Inc.

Capital and Ratings Information

Fourth Quarter 2015

 

(in millions unless otherwise noted, unaudited)

 

December 31, 2014

 

March 31, 2015

 

June 30, 2015

 

September 30, 2015

 

December 31, 2015

 

Long-term Debt Summary

 

 

 

 

 

 

 

 

 

 

 

Senior notes

 

$

2,768

 

$

2,772

 

$

2,761

 

$

2,766

 

$

2,402

 

Junior subordinated notes

 

294

 

294

 

294

 

253

 

245

 

Capital lease obligations

 

—

 

—

 

—

 

—

 

60

 

Total Ameriprise Financial long-term debt

 

3,062

 

3,066

 

3,055

 

3,019

 

2,707

 

Non-recourse debt of consolidated investment entities

 

6,867

 

6,779

 

7,353

 

7,926

 

7,539

 

Total long-term debt

 

$

9,929

 

$

9,845

 

$

10,408

 

$

10,945

 

$

10,246

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt

 

$

3,062

 

$

3,066

 

$

3,055

 

$

3,019

 

$

2,707

 

Fair value of hedges and unamortized discount

 

(68

)

(72

)

(61

)

(66

)

(52

)

Capital lease obligations

 

—

 

—

 

—

 

—

 

(60

)

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

 

$

2,994

 

$

2,994

 

$

2,994

 

$

2,953

 

$

2,595

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity (2)

 

$

9,305

 

$

9,259

 

$

8,996

 

$

8,821

 

$

8,405

 

Noncontrolling interests

 

(1,181

)

(1,064

)

(1,121

)

(1,192

)

(1,188

)

Total Ameriprise Financial shareholders’ equity

 

8,124

 

8,195

 

7,875

 

7,629

 

7,217

 

Equity of consolidated investment entities

 

(222

)

(266

)

(243

)

(162

)

(131

)

Total Ameriprise Financial shareholders’ equity excluding CIEs (1)

 

$

7,902

 

$

7,929

 

$

7,632

 

$

7,467

 

$

7,086

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial capital

 

$

11,186

 

$

11,261

 

$

10,930

 

$

10,648

 

$

9,924

 

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

 

$

10,896

 

$

10,923

 

$

10,626

 

$

10,420

 

$

9,681

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to capital

 

 

 

 

 

 

 

 

 

 

 

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

 

27.4

%

27.2

%

28.0

%

28.4

%

27.3

%

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

 

27.5

%

27.4

%

28.2

%

28.3

%

26.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Ratings (as of December 31, 2015 earnings release date)

 

A.M. Best
Company

 

Standard & Poor’s Rating
Services

 

Moody’s Investors
Service, Inc.

 

 

 

 

 

 

Claims Paying Ratings (3)

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Life Insurance Company

 

A+

 

AA-

 

Aa3

 

 

 

 

 

 

IDS Property Casualty Ins. Company

 

A

 

N/R

 

N/R

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Ratings (3)

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

 

a-

 

A

 

A3

 

 

 

 

 

 

 

(1)             See non-GAAP financial information on pg 34.  Non-GAAP financial measure reconciliations can be found on page 46.

(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)

Fourth Quarter 2015

 

(in millions unless otherwise noted, unaudited)

 

December 31, 2014

 

March 31, 2015

 

June 30, 2015

 

September 30, 2015

 

December 31, 2015

 

Cash and cash equivalents

 

$

2,638

 

$

2,809

 

$

2,570

 

$

2,780

 

$

2,357

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments - Ending Balances

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale Securities

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

17,165

 

17,218

 

16,919

 

16,898

 

16,348

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage backed securities

 

6,207

 

6,270

 

6,121

 

6,008

 

5,973

 

Commercial mortgage backed securities

 

2,630

 

2,694

 

2,562

 

2,499

 

2,456

 

Asset backed securities

 

1,470

 

1,405

 

1,321

 

1,302

 

1,296

 

Total mortgage and other asset backed securities

 

10,307

 

10,369

 

10,004

 

9,809

 

9,725

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal obligations

 

2,239

 

2,243

 

2,190

 

2,259

 

2,290

 

US government and agencies obligations

 

47

 

56

 

56

 

72

 

68

 

Foreign government bonds and obligations

 

251

 

245

 

239

 

230

 

224

 

Common and preferred stocks

 

18

 

19

 

19

 

18

 

18

 

Total other

 

2,555

 

2,563

 

2,504

 

2,579

 

2,600

 

Total available-for-sale securities

 

30,027

 

30,150

 

29,427

 

29,286

 

28,673

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage loans

 

2,729

 

2,683

 

2,735

 

2,757

 

2,755

 

Allowance for loan losses

 

(25

)

(23

)

(23

)

(22

)

(21

)

Commercial mortgage loans, net

 

2,704

 

2,660

 

2,712

 

2,735

 

2,734

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

739

 

710

 

679

 

649

 

627

 

Allowance for loan losses

 

(3

)

(2

)

(3

)

(2

)

(2

)

Residential mortgage loans, net

 

736

 

708

 

676

 

647

 

625

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy loans

 

806

 

813

 

817

 

824

 

824

 

Other investments

 

1,309

 

1,395

 

1,264

 

1,254

 

1,288

 

Total investments

 

35,582

 

35,726

 

34,896

 

34,746

 

34,144

 

Total cash, cash equivalents and investments

 

$

38,220

 

$

38,535

 

$

37,466

 

$

37,526

 

$

36,501

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gain Available-for-Sale Securities

 

$

1,961

 

$

2,178

 

$

1,500

 

$

1,393

 

$

921

 

 

 

 

 

 

 

 

 

 

 

 

 

AFS Fixed Maturity Asset Quality - %

 

 

 

 

 

 

 

 

 

 

 

AAA

 

26

%

26

%

25

%

25

%

25

%

AA

 

6

%

6

%

6

%

6

%

7

%

AFS securities AA and above

 

32

%

32

%

31

%

31

%

32

%

A

 

22

%

21

%

21

%

20

%

19

%

BBB

 

40

%

41

%

42

%

44

%

43

%

Below investment grade

 

6

%

6

%

6

%

5

%

6

%

Total AFS fixed maturity asset quality - %

 

100

%

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

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

 

6

%

6

%

6

%

5

%

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, 45 and 46.

 

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, capital lease obligations and equity of CIEs;

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

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

 

Reclassification

 

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

 

34


 

Ameriprise Financial, Inc.

Glossary of Selected Terminology - Segments

 

Advice & Wealth Management - This segment provides financial planning and advice, as well as full service brokerage services, primarily to retail clients through our advisors. These services are centered on long-term, personal relationships between our advisors and our clients and focus on helping clients confidently achieve their financial goals. Our advisors provide a distinctive approach to financial planning and have access to a broad selection of both affiliated and non-affiliated products to help clients meet their financial needs. A significant portion of revenues in this segment is fee-based, driven by the level of client assets, which is impacted by both market movements and net asset flows. We also earn net investment income on owned assets primarily from certificate products. This segment earns revenues (distribution fees) for providing non-affiliated products and intersegment revenues (distribution fees) for providing our affiliated products and services to our retail clients. Intersegment expenses for this segment include expenses for investment management services provided by our Asset Management segment. This segment also includes the results of operation for Ameriprise National Trust Bank, which terminated its deposit-taking and credit-originating activities in the fourth quarter of 2012.

 

Asset Management - This segment provides investment advice and investment products to retail, high net worth and institutional clients on a global scale through Columbia Threadneedle Investments. We provide clients with U.S. domestic individual products through unaffiliated third-party financial institutions and through our Advice & Wealth Management segment, and we provide institutional products and services through our institutional sales force. International retail products are primarily distributed through third-party financial institutions and unaffiliated financial advisors. Individual products include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds and variable product funds underlying insurance and annuity separate accounts. Institutional asset management services are designed to meet specific client objectives and may involve a range of products, including those that focus on traditional asset classes, separately managed accounts, collateralized loan obligations, hedge funds, collective funds and property funds. Collateralized loan obligations, hedge funds and certain private funds are often classified as alternative assets. Revenues in this segment are primarily earned as fees based on managed asset balances, which are impacted by market movements, net asset flows, asset allocation and product mix. We may also earn performance fees from certain accounts where investment performance meets or exceeds certain pre-identified targets. In addition our Asset Management segment provides all intercompany asset management services for Ameriprise Financial subsidiaries. The fees for such services are reflected within the Asset Management segment results through intersegment transfer pricing. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management, Annuities and Protection segments.

 

Annuities - This segment provides RiverSource variable and fixed annuity products to individual clients. RiverSource Life Insurance Company and RiverSource Life Insurance Co. of New York provide variable annuity products through our advisors, and our fixed annuity products are distributed through both affiliated and unaffiliated advisors and financial institutions. These products are designed to help individuals address their asset accumulation and income goals.  Revenues for our variable annuity products are primarily earned as fees based on underlying account balances, which are impacted by both market movements and net asset flows. Revenues for our fixed annuity products are primarily earned as net investment income on assets supporting fixed account balances, with profitability significantly impacted by the spread between net investment income earned and interest credited on the fixed account balances. We also earn net investment income on owned assets supporting reserves for immediate annuities and for certain guaranteed benefits offered with variable annuities and on capital supporting the business. Intersegment revenues for this segment reflect fees paid by our Asset Management segment for marketing support and other services provided in connection with the availability of VIT Funds under the variable annuity contracts. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management segment, as well as expenses for investment management services provided by our Asset Management segment.

 

Protection - This segment provides a variety of products to address the protection and risk management needs of our retail clients, including life, disability income and property-casualty insurance. These products are designed to provide a lifetime of solutions that allow clients to protect income, grow assets and give to loved ones or charity. Life and disability income products are primarily provided through our advisors. Our property-casualty products are sold primarily through affinity relationships. We issue insurance policies through our life insurance subsidiaries and property casualty companies (IDS Property Casualty Insurance Company and its subsidiary, Ameriprise Insurance Company). The primary sources of revenues for this segment are premiums, fees, and charges we receive to assume insurance-related risk. We earn net investment income on owned assets supporting insurance reserves and capital supporting the business. We also receive fees based on the level of assets supporting variable universal life separate account balances. This segment earns intersegment revenues from fees paid by our Asset Management segment for marketing support and other services provided in connection with the availability of VIT Funds under the variable universal life contracts. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management segment, as well as expenses for investment management services provided by our Asset Management segment.

 

Corporate & Other - This segment consists of net investment income or loss on corporate level assets, including excess capital held in our subsidiaries and other unallocated equity and other revenues as well as unallocated corporate expenses.

 

35


 

Ameriprise Financial, Inc.

Glossary of Selected Terminology

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Assets Under Management - Assets under management include external client assets for which we provide investment management services, such as the assets of the Columbia funds and Threadneedle funds, assets of institutional clients and advisory assets held in wrap accounts as well as assets managed by sub-advisors selected by us. Assets under management also include certain assets on our Consolidated Balance Sheets for which we provide investment management services and recognize management fees in our Asset Management segment, such as the assets of the general account, RiverSource Variable Product funds held in the separate accounts of our life insurance subsidiaries, and client assets of CIEs. These assets do not include assets under advisement, for which we provide model portfolios, but do not have full discretionary investment authority.

 

Auto & Home Insurance - Personal auto and home protection products marketed directly to customers through marketing affiliates such as Costco Wholesale Corporation and Ford Motor Credit Company. We sell these products through our auto and home subsidiary, IDS Property Casualty Insurance Company (doing business as Ameriprise Auto & Home Insurance).

 

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

 

Consolidated Investment Entities (“CIEs”) - CIEs include variable interest entities, such as property funds and CLOs, required to be consolidated under current accounting standards.

 

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

 

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

 

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

 

Market Impact of Hedges on Investments - The market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments.

 

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

 

Market Impact on Variable Annuity Guaranteed Benefits - The impact of changes in financial market conditions on benefit costs associated with variable annuity guaranteed living benefits accounted for as embedded derivatives, net of changes in economic hedge values and unhedged items including the difference between assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and certain policyholder contract elections, net of related impacts on DAC and DSIC amortization.  The market impact includes the risk margin and nonperformance spread impact.

 

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

 

36


 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Risk Margin and Nonperformance Spread Impact - The portion of the market impact on variable annuity guaranteed benefits and indexed universal life benefits related to liability valuation adjustments made in accordance with Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value Measurements and Disclosures (“ASC 820”) that management considers to be non-economic, including the impact of discounting projected benefits at a rate reflecting a current estimate of RiverSource Life’s nonperformance spread, net of related impacts on DAC, DSIC and unearned revenue as well as a reinsurance accrual for indexed universal life.

 

Separate Account - Represents assets and liabilities that are maintained and established primarily for the purpose of funding variable annuity and insurance products. The assets of the separate account are only available to fund the liabilities of the variable annuity contract holders and others with contracts requiring premiums or other deposits to the separate account. Clients elect to invest premiums in stock, bond and/or money market funds depending on their risk tolerance. All investment performance, net of fees, is passed through to the client.

 

Threadneedle - Threadneedle Asset Management Holdings Sarl is a holding company for the London-based Threadneedle companies, which provide investment management products and services.

 

Total Ameriprise Financial Capital - Total Ameriprise Financial shareholders’ equity plus total Ameriprise Financial long-term debt. Total Ameriprise Financial capital is also presented excluding fair value of hedges, unamortized discount, capital lease obligations and equity of CIEs.

 

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

 

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

 

37


 

Exhibit A

 

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2015

 

Disclosed Items

 

38


 

Ameriprise Financial, Inc.

Disclosed Items

4 Qtr 2015

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth
Management

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

 

 

Market Impact on

 

 

 

Market Impact on

 

 

 

 

 

Market Impact

 

 

 

Securities

 

Securities

 

VA Guaranteed

 

Securities

 

Indexed Universal

 

 

 

Integration

 

of Hedges

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Gains/(Losses) (1)

 

Life Benefits (3)

 

CIEs (4)

 

Charges (5)

 

on Investments (6)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

(31

)

$

—

 

$

—

 

Distribution fees

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Net investment income

 

1

 

(5

)

—

 

3

 

—

 

70

 

—

 

11

 

Premiums

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Other revenues

 

—

 

—

 

—

 

—

 

2

 

74

 

—

 

—

 

Total revenues

 

1

 

(5

)

—

 

3

 

2

 

113

 

—

 

11

 

Banking and deposit interest expense

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Total net revenues

 

1

 

(5

)

—

 

3

 

2

 

113

 

—

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Interest credited to fixed accounts

 

—

 

—

 

—

 

—

 

(1

)

—

 

—

 

—

 

Benefits, claims, losses and settlement expenses

 

—

 

—

 

165

 

—

 

—

 

—

 

—

 

—

 

Amortization of deferred acquisition costs

 

—

 

—

 

(26

)

—

 

2

 

—

 

—

 

—

 

Interest and debt expense

 

—

 

—

 

—

 

—

 

—

 

82

 

—

 

—

 

General and administrative expense

 

—

 

—

 

—

 

—

 

—

 

8

 

1

 

—

 

Total expenses

 

—

 

—

 

139

 

—

 

1

 

90

 

1

 

—

 

Pretax segment income (loss)

 

1

 

(5

)

(139

)

3

 

1

 

23

 

(1

)

11

 

Less: Net income (loss) attributable to noncontrolling interest

 

—

 

—

 

—

 

—

 

—

 

23

 

—

 

—

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

1

 

$

(5

)

$

(139

)

$

3

 

$

1

 

$

—

 

$

(1

)

$

11

 

 

Included in Operating Earnings

 

 

 

Annuities

 

Protection

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

Market

 

Life Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impacts

 

Assumption

 

Auto & Home

 

Tax

 

 

 

 

 

 

 

 

 

(in millions, unaudited)

 

to DAC/DSIC (7)

 

Change (8)

 

Reserves (9)

 

Benefit (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

)

(28

)

57

 

—

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

(5

)

—

 

—

 

—

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

General and administrative expense

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

Operating expenses

 

(6

)

(28

)

57

 

—

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

6

 

$

28

 

$

(57

)

$

—

 

 

 

 

 

 

 

 

 

Tax benefit

 

 

 

 

 

 

 

$

26

 

 

 

 

 

 

 

 

 

 

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

(2)        Variable annuity guaranteed benefit impacts include:

$168 million net expense related to hedged variable annuity benefits

$29 million decrease in DAC and DSIC amortization resulting from hedged benefits

(3)        Indexed universal life benefit impacts include:

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

$2 million increase in DAC amortization resulting from hedged indexed universal life benefits

$2 million increase in unearned revenue reserve amortization and reinsurance accrual from hedged indexed universal life benefits

(4)        Reflects revenues and expenses of Consolidated Investment Entities

(5)        Integration charges related to JHS Capital Advisors acquisition

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

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

(8)        Life insurance reserve reduction resulting from an assumption change

(9)        Reserve strengthening primarily in auto line

(10)   Dividends received deduction benefit

 

39


 

Ameriprise Financial, Inc.

Disclosed Items

3 Qtr 2015

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth 
Management

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

 

 

Market Impact on

 

 

 

Market Impact on

 

 

 

 

 

Market Impact

 

 

 

Securities

 

Securities

 

VA Guaranteed

 

Securities

 

Indexed Universal

 

 

 

Integration

 

of Hedges

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Gains/(Losses) (1)

 

Life Benefits (3)

 

CIEs (4)

 

Charges (5)

 

on Investments (6)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

(15

)

$

—

 

$

—

 

Distribution fees

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Net investment income

 

(1

)

(8

)

—

 

(1

)

—

 

2

 

—

 

(31

)

Premiums

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Other revenues

 

—

 

—

 

—

 

—

 

9

 

56

 

—

 

—

 

Total revenues

 

(1

)

(8

)

—

 

(1

)

9

 

43

 

—

 

(31

)

Banking and deposit interest expense

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Total net revenues

 

(1

)

(8

)

—

 

(1

)

9

 

43

 

—

 

(31

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Interest credited to fixed accounts

 

—

 

—

 

—

 

—

 

4

 

—

 

—

 

—

 

Benefits, claims, losses and settlement expenses

 

—

 

—

 

(2

)

—

 

—

 

—

 

—

 

—

 

Amortization of deferred acquisition costs

 

—

 

—

 

7

 

—

 

6

 

—

 

—

 

—

 

Interest and debt expense

 

—

 

—

 

—

 

—

 

—

 

68

 

—

 

—

 

General and administrative expense

 

—

 

—

 

—

 

—

 

—

 

20

 

3

 

—

 

Total expenses

 

—

 

—

 

5

 

—

 

10

 

88

 

3

 

—

 

Pretax segment income (loss)

 

(1

)

(8

)

(5

)

(1

)

(1

)

(45

)

(3

)

(31

)

Less: Net income (loss) attributable to noncontrolling interest

 

—

 

—

 

—

 

—

 

—

 

(45

)

—

 

—

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

(1

)

$

(8

)

$

(5

)

$

(1

)

$

(1

)

$

—

 

$

(3

)

$

(31

)

 

Included in Operating Earnings

 

 

 

Annuities

 

Protection

 

 

 

 

 

 

 

Market

 

Valuation

 

Market

 

Valuation

 

Long Term

 

Life Reinsurance

 

 

 

 

 

 

 

Impacts

 

Assumptions &

 

Impacts

 

Assumptions &

 

Care

 

Premium

 

 

 

 

 

(in millions, unaudited)

 

to DAC/DSIC (7)

 

Model Changes (8)

 

to DAC/DSIC (7)

 

Model Changes (8)

 

Reserves (9)

 

Correction (10)

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

 

 

 

 

Distribution fees

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

Net investment income

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

Premiums

 

—

 

—

 

—

 

(3

)

—

 

(4

)

 

 

 

 

Other revenues

 

—

 

—

 

—

 

(5

)

—

 

(9

)

 

 

 

 

Total revenues

 

—

 

—

 

—

 

(8

)

—

 

(13

)

 

 

 

 

Banking and deposit interest expense

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

Operating total net revenues

 

—

 

—

 

—

 

(8

)

—

 

(13

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

—

 

—

 

—

 

—

 

—

 

(2

)

 

 

 

 

Interest credited to fixed accounts

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

6

 

(61

)

—

 

6

 

(13

)

—

 

 

 

 

 

Amortization of deferred acquisition costs

 

23

 

(5

)

2

 

10

 

—

 

—

 

 

 

 

 

Interest and debt expense

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

General and administrative expense

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

Operating expenses

 

29

 

(66

)

2

 

16

 

(13

)

(2

)

 

 

 

 

Pretax operating earnings

 

$

(29

)

$

66

 

$

(2

)

$

(24

)

$

13

 

$

(11

)

 

 

 

 

 

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

(2)        Variable annuity guaranteed benefit impacts include:

$4 million net benefit related to hedged variable annuity benefits

$9 million increase in DAC and DSIC amortization resulting from hedged benefits

(3)        Indexed universal life benefit impacts include:

$4 million net expense related to hedged indexed universal life benefits

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

$9 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)        Integration charges related to JHS Capital Advisors acquisition

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

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

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

(9)        Reserve release related to our closed block of long term care insurance

(10)   Accrual established for ceded reinsurance

 

40


 

Ameriprise Financial, Inc.

Disclosed Items

2 Qtr 2015

 

Excluded from Operating Earnings

 

 

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

Market Impact on

 

 

 

Market Impact on

 

 

 

 

 

Market Impact

 

 

 

Securities

 

VA Guaranteed

 

Securities

 

Indexed Universal

 

 

 

Integration

 

of Hedges

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Gains/(Losses) (1)

 

Life Benefits (3)

 

CIEs (4)

 

Charges (5)

 

on Investments (6)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

—

 

$

—

 

$

—

 

$

—

 

$

(15

)

$

—

 

$

—

 

Distribution fees

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Net investment income

 

3

 

—

 

2

 

—

 

54

 

—

 

(1

)

Premiums

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Other revenues

 

—

 

—

 

—

 

—

 

102

 

—

 

—

 

Total revenues

 

3

 

—

 

2

 

—

 

141

 

—

 

(1

)

Banking and deposit interest expense

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Total net revenues

 

3

 

—

 

2

 

—

 

141

 

—

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Interest credited to fixed accounts

 

—

 

—

 

—

 

(4

)

—

 

—

 

—

 

Benefits, claims, losses and settlement expenses

 

—

 

40

 

—

 

—

 

—

 

—

 

—

 

Amortization of deferred acquisition costs

 

—

 

(4

)

—

 

(1

)

—

 

—

 

—

 

Interest and debt expense

 

—

 

—

 

—

 

—

 

59

 

—

 

—

 

General and administrative expense

 

—

 

—

 

—

 

—

 

21

 

1

 

—

 

Total expenses

 

—

 

36

 

—

 

(5

)

80

 

1

 

—

 

Pretax segment income (loss)

 

3

 

(36

)

2

 

5

 

61

 

(1

)

(1

)

Less: Net income (loss) attributable to noncontrolling interest

 

—

 

—

 

—

 

—

 

61

 

—

 

—

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

3

 

$

(36

)

$

2

 

$

5

 

$

—

 

$

(1

)

$

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

Protection

 

 

 

 

 

 

 

 

 

Market

 

 

 

 

 

Auto & Home

 

 

 

 

 

 

 

 

 

Impacts

 

Variable Annuity

 

Long Term Care

 

Catastrophe

 

 

 

 

 

 

 

(in millions, unaudited)

 

to DAC/DSIC (7)

 

Product Changes (8)

 

Reserves (9)

 

Losses (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

 

(2

)

(18

)

48

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

4

 

—

 

—

 

—

 

 

 

 

 

 

 

Interest and debt expense

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

General and administrative expense

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

Operating expenses

 

5

 

(2

)

(18

)

48

 

 

 

 

 

 

 

Pretax operating earnings

 

$

(5

)

$

2

 

$

18

 

$

(48

)

 

 

 

 

 

 

 

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

(2)        Variable annuity guaranteed benefit impacts include:

$39 million net expense related to hedged variable annuity benefits

$3 million decrease in DAC and DSIC amortization resulting from hedged benefits

(3)        Indexed universal life benefit impacts include:

$4 million net benefit related to hedged indexed universal life benefits

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

(4)        Reflects revenues and expenses of Consolidated Investment Entities

(5)        Integration charges related to JHS Capital Advisors acquisition

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

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

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

(9)        Reserve release related to our closed block of long term care insurance

(10)   Total auto and home catastrophe losses for the quarter, which were $25 million higher than expectations

 

41


 

Ameriprise Financial, Inc.

Disclosed Items

1 Qtr 2015

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth

 

 

 

 

 

 

 

 

 

Corporate and

 

 

 

Management

 

Annuities

 

Protection

 

Eliminations

 

 

 

 

 

 

 

Market Impact on

 

 

 

Market Impact on

 

 

 

 

 

Securities

 

Securities

 

VA Guaranteed

 

Securities

 

Indexed Universal

 

 

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Gains/(Losses) (1)

 

Life Benefits (3)

 

CIEs (4)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

(14

)

Distribution fees

 

—

 

—

 

—

 

—

 

—

 

—

 

Net investment income

 

(1

)

7

 

—

 

4

 

—

 

105

 

Premiums

 

—

 

—

 

—

 

—

 

—

 

—

 

Other revenues

 

—

 

—

 

—

 

—

 

(4

)

58

 

Total revenues

 

(1

)

7

 

—

 

4

 

(4

)

149

 

Banking and deposit interest expense

 

—

 

—

 

—

 

—

 

—

 

—

 

Total net revenues

 

(1

)

7

 

—

 

4

 

(4

)

149

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

—

 

—

 

—

 

—

 

—

 

—

 

Interest credited to fixed accounts

 

—

 

—

 

—

 

—

 

5

 

—

 

Benefits, claims, losses and settlement expenses

 

—

 

—

 

38

 

—

 

—

 

—

 

Amortization of deferred acquisition costs

 

—

 

—

 

(4

)

—

 

(3

)

—

 

Interest and debt expense

 

—

 

—

 

—

 

—

 

—

 

53

 

General and administrative expense

 

—

 

—

 

—

 

—

 

—

 

10

 

Total expenses

 

—

 

—

 

34

 

—

 

2

 

63

 

Pretax segment income (loss)

 

(1

)

7

 

(34

)

4

 

(6

)

86

 

Less: Net income (loss) attributable to noncontrolling interest

 

—

 

—

 

—

 

—

 

—

 

86

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

(1

)

$

7

 

$

(34

)

$

4

 

$

(6

)

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

Protection

 

 

 

Market

 

 

 

Market

 

 

 

Disability Insurance

 

Auto & Home

 

 

 

Impacts

 

Variable Annuity

 

Impacts

 

Long Term Care

 

Discount Rate

 

Weather-Related

 

(in millions, unaudited)

 

to DAC/DSIC (5)

 

Product Changes (6)

 

to DAC/DSIC (5)

 

Reserves (7)

 

Change (8)

 

Losses (9)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Distribution fees

 

—

 

—

 

—

 

—

 

—

 

—

 

Net investment income

 

—

 

—

 

—

 

—

 

—

 

—

 

Premiums

 

—

 

—

 

—

 

—

 

—

 

—

 

Other revenues

 

—

 

—

 

—

 

—

 

—

 

—

 

Total revenues

 

—

 

—

 

—

 

—

 

—

 

—

 

Banking and deposit interest expense

 

—

 

—

 

—

 

—

 

—

 

—

 

Operating total net revenues

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

—

 

—

 

—

 

—

 

—

 

—

 

Interest credited to fixed accounts

 

—

 

—

 

—

 

—

 

—

 

—

 

Benefits, claims, losses and settlement expenses

 

(2

)

(3

)

—

 

32

 

(7

)

12

 

Amortization of deferred acquisition costs

 

(8

)

1

 

(1

)

—

 

—

 

—

 

Interest and debt expense

 

—

 

—

 

—

 

—

 

—

 

—

 

General and administrative expense

 

—

 

—

 

—

 

—

 

—

 

—

 

Operating expenses

 

(10

)

(2

)

(1

)

32

 

(7

)

12

 

Pretax operating earnings

 

$

10

 

$

2

 

$

1

 

$

(32

)

$

7

 

$

(12

)

 

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

(2)        Variable annuity guaranteed benefit impacts include:

$39 million net expense related to hedged variable annuity benefits

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

(3)        Indexed universal life benefit impacts include:

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

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

$4 million decrease in unearned revenue reserve amortization and reinsurance accrual from hedged indexed universal life benefits

(4)        Reflects revenues and expenses of Consolidated Investment Entities

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

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

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

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

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

 

42


 

Ameriprise Financial, Inc.

Disclosed Items

4 Qtr 2014

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth 

 

 

 

 

 

 

 

 

 

Corporate and

 

 

 

Management

 

Annuities

 

Protection

 

Eliminations

 

 

 

 

 

 

 

Market Impact on

 

 

 

Market Impact on

 

 

 

 

 

Securities

 

Securities

 

VA Guaranteed

 

Securities

 

Indexed Universal

 

 

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Gains/(Losses) (1)

 

Life Benefits (3)

 

CIEs (4)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

(16

)

Distribution fees

 

—

 

—

 

—

 

—

 

—

 

—

 

Net investment income

 

1

 

16

 

—

 

10

 

—

 

(1

)

Premiums

 

—

 

—

 

—

 

—

 

—

 

—

 

Other revenues

 

—

 

—

 

—

 

—

 

(11

)

125

 

Total revenues

 

1

 

16

 

—

 

10

 

(11

)

108

 

Banking and deposit interest expense

 

—

 

—

 

—

 

—

 

—

 

—

 

Total net revenues

 

1

 

16

 

—

 

10

 

(11

)

108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

—

 

—

 

—

 

—

 

—

 

—

 

Interest credited to fixed accounts

 

—

 

—

 

—

 

—

 

12

 

—

 

Benefits, claims, losses and settlement expenses

 

—

 

—

 

40

 

—

 

—

 

—

 

Amortization of deferred acquisition costs

 

—

 

—

 

(6

)

—

 

(8

)

—

 

Interest and debt expense

 

—

 

—

 

—

 

—

 

—

 

60

 

General and administrative expense

 

—

 

—

 

—

 

—

 

—

 

20

 

Total expenses

 

—

 

—

 

34

 

—

 

4

 

80

 

Pretax segment income (loss)

 

1

 

16

 

(34

)

10

 

(15

)

28

 

Less: Net income (loss) attributable to noncontrolling interest

 

—

 

—

 

—

 

—

 

—

 

28

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

1

 

$

16

 

$

(34

)

$

10

 

$

(15

)

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

Protection

 

 

 

 

 

Market

 

 

 

Market

 

 

 

 

 

 

 

 

 

Impacts

 

Variable Annuity

 

Impacts

 

Actuarial Model

 

Auto & Home

 

 

 

(in millions, unaudited)

 

to DAC/DSIC (5)

 

Product Changes (6)

 

to DAC/DSIC (5)

 

Correction (7)

 

Reserves (8)

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

 

 

Distribution fees

 

—

 

—

 

—

 

—

 

—

 

 

 

Net investment income

 

—

 

—

 

—

 

—

 

—

 

 

 

Premiums

 

—

 

—

 

—

 

—

 

—

 

 

 

Other revenues

 

—

 

—

 

—

 

—

 

—

 

 

 

Total revenues

 

—

 

—

 

—

 

—

 

—

 

 

 

Banking and deposit interest expense

 

—

 

—

 

—

 

—

 

—

 

 

 

Operating total net revenues

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

—

 

—

 

—

 

—

 

—

 

 

 

Interest credited to fixed accounts

 

—

 

—

 

—

 

—

 

—

 

 

 

Benefits, claims, losses and settlement expenses

 

(1

)

(2

)

—

 

—

 

60

 

 

 

Amortization of deferred acquisition costs

 

(6

)

—

 

(1

)

7

 

—

 

 

 

Interest and debt expense

 

—

 

—

 

—

 

—

 

—

 

 

 

General and administrative expense

 

—

 

—

 

—

 

—

 

—

 

 

 

Operating expenses

 

(7

)

(2

)

(1

)

7

 

60

 

 

 

Pretax operating earnings

 

$

7

 

$

2

 

$

1

 

$

(7

)

$

(60

)

 

 

 

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

(2)        Variable annuity guaranteed benefit impacts include:

$42 million net expense related to hedged variable annuity benefits

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

(3)        Indexed universal life benefit impacts include:

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

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

$11 million decrease in unearned revenue reserve amortization and reinsurance accrual from hedged indexed universal life benefits

(4)        Reflects revenues and expenses of Consolidated Investment Entities

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

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

(7)        Actuarial model correction in life and health

(8)        Increase in auto reserves

 

43


 

Exhibit B

 

GRAPHIC

 

 

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2015

 

Non-GAAP Financial Measure Reconciliations

 

44


 

Ameriprise Financial, Inc.

Non-GAAP Financial Measure Reconciliations

Fourth Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-date

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

4 Qtr 2015

 

2014

 

2015

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Ameriprise Financial (last twelve months)

 

$

1,619

 

$

1,612

 

$

1,653

 

$

1,630

 

$

1,562

 

$

1,619

 

$

1,562

 

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

 

(2

)

(1

)

(1

)

(1

)

—

 

(2

)

—

 

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

 

1,621

 

1,613

 

1,654

 

1,631

 

1,562

 

1,621

 

1,562

 

Less adjustments (1)

 

(41

)

(54

)

(39

)

(84

)

(154

)

(41

)

(154

)

Operating earnings (last twelve months)

 

$

1,662

 

$

1,667

 

$

1,693

 

$

1,715

 

$

1,716

 

$

1,662

 

$

1,716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

8,270

 

$

8,270

 

$

8,176

 

$

8,017

 

$

7,808

 

$

8,270

 

$

7,808

 

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

 

734

 

755

 

706

 

615

 

516

 

734

 

516

 

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

 

7,536

 

7,515

 

7,470

 

7,402

 

7,292

 

7,536

 

7,292

 

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

 

311

 

300

 

280

 

250

 

216

 

311

 

216

 

Operating equity (five point quarter end average)

 

$

7,225

 

$

7,215

 

$

7,190

 

$

7,152

 

$

7,076

 

$

7,225

 

$

7,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity excluding AOCI

 

21.5

%

21.5

%

22.1

%

22.0

%

21.4

%

21.5

%

21.4

%

Operating return on equity excluding AOCI

 

23.0

%

23.1

%

23.5

%

24.0

%

24.3

%

23.0

%

24.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective Tax Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax provision

 

$

558

 

$

618

 

$

615

 

$

463

 

$

446

 

$

2,547

 

$

2,142

 

Less pretax income (loss) attributable to noncontrolling interests

 

28

 

86

 

61

 

(45

)

23

 

381

 

125

 

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

 

530

 

532

 

554

 

508

 

423

 

2,166

 

2,017

 

Less adjustments (2)

 

(22

)

(30

)

(28

)

(50

)

(129

)

(63

)

(237

)

Pretax operating earnings

 

$

552

 

$

562

 

$

582

 

$

558

 

$

552

 

$

2,229

 

$

2,254

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision from continuing operations

 

$

104

 

$

139

 

$

139

 

$

111

 

$

66

 

$

545

 

$

455

 

Operating income tax provision

 

$

112

 

$

150

 

$

148

 

$

129

 

$

111

 

$

567

 

$

538

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

18.7

%

22.5

%

22.6

%

24.1

%

14.8

%

21.4

%

21.3

%

Effective tax rate excluding noncontrolling interests

 

19.7

%

26.1

%

25.1

%

21.9

%

15.6

%

25.2

%

22.6

%

Operating effective tax rate

 

20.3

%

26.7

%

25.4

%

23.1

%

20.1

%

25.4

%

23.9

%

 

(1)

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

 

 

(2)

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

 

45


 

Ameriprise Financial, Inc.

Non-GAAP Financial Measure Reconciliations

Fourth Quarter 2015

 

(in millions unless otherwise noted, unaudited)

 

December 31, 2014

 

March 31, 2015

 

June 30, 2015

 

September 30, 2015

 

December 31, 2015

 

Long-term Debt Summary

 

 

 

 

 

 

 

 

 

 

 

Senior notes

 

$

2,768

 

$

2,772

 

$

2,761

 

$

2,766

 

$

2,402

 

Junior subordinated notes

 

294

 

294

 

294

 

253

 

245

 

Capital lease obligations

 

—

 

—

 

—

 

—

 

60

 

Total Ameriprise Financial long-term debt

 

3,062

 

3,066

 

3,055

 

3,019

 

2,707

 

Less fair value of hedges and unamortized discount

 

68

 

72

 

61

 

66

 

52

 

Less capital lease obligations

 

—

 

—

 

—

 

—

 

60

 

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

 

$

2,994

 

$

2,994

 

$

2,994

 

$

2,953

 

$

2,595

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Summary

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

$

9,305

 

$

9,259

 

$

8,996

 

$

8,821

 

$

8,405

 

Less noncontrolling interests

 

1,181

 

1,064

 

1,121

 

1,192

 

1,188

 

Total Ameriprise Financial shareholders’ equity

 

8,124

 

8,195

 

7,875

 

7,629

 

7,217

 

Less equity of consolidated investment entities

 

222

 

266

 

243

 

162

 

131

 

Total Ameriprise Financial shareholders’ equity excluding CIEs

 

$

7,902

 

$

7,929

 

$

7,632

 

$

7,467

 

$

7,086

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Summary

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt

 

$

3,062

 

$

3,066

 

$

3,055

 

$

3,019

 

$

2,707

 

Total Ameriprise Financial shareholders’ equity

 

8,124

 

8,195

 

7,875

 

7,629

 

7,217

 

Total Ameriprise Financial capital

 

11,186

 

11,261

 

10,930

 

10,648

 

9,924

 

Less equity of consolidated investment entities

 

222

 

266

 

243

 

162

 

131

 

Less fair value of hedges and unamortized discount

 

68

 

72

 

61

 

66

 

52

 

Less capital lease obligations

 

—

 

—

 

—

 

—

 

60

 

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

 

$

10,896

 

$

10,923

 

$

10,626

 

$

10,420

 

$

9,681

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

27.4

%

27.2

%

28.0

%

28.4

%

27.3

%

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

 

27.5

%

27.4

%

28.2

%

28.3

%

26.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial shareholders’ equity

 

$

8,124

 

$

8,195

 

$

7,875

 

$

7,629

 

$

7,217

 

AOCI

 

662

 

704

 

500

 

461

 

253

 

Appropriated retained earnings of CIEs

 

234

 

279

 

257

 

174

 

137

 

AOCI attributable to CIEs

 

(12

)

(13

)

(14

)

(12

)

(6

)

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial shareholders’ equity

 

$

8,124

 

$

8,195

 

$

7,875

 

$

7,629

 

$

7,217

 

Less AOCI

 

662

 

704

 

500

 

461

 

253

 

Ameriprise Financial shareholders’ equity excluding AOCI

 

$

7,462

 

$

7,491

 

$

7,375

 

$

7,168

 

$

6,964

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial shareholders’ equity

 

$

8,124

 

$

8,195

 

$

7,875

 

$

7,629

 

$

7,217

 

Less appropriated retained earnings of CIEs

 

234

 

279

 

257

 

174

 

137

 

Less AOCI

 

662

 

704

 

500

 

461

 

253

 

Ameriprise Financial shareholders’ equity excluding CIEs and AOCI

 

$

7,228

 

$

7,212

 

$

7,118

 

$

6,994

 

$

6,827

 

 

46

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