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EX-99.1 - EX-99.1 - AMERIPRISE FINANCIAL INCa18-11175_1ex99d1.htm
8-K - 8-K - AMERIPRISE FINANCIAL INCa18-11175_18k.htm

Exhibit 99.2

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2018

 

1



 

Ameriprise Financial, Inc.

Statistical Supplement Information

Table of Contents

 

 

Page

Ameriprise Financial, Inc.

 

Statistical Supplement Presentation

4

Consolidated GAAP Income Statements

5

Consolidated Adjusted Operating Results and Highlights

6

Common Share and Capital Summary

8

Segment Summary

10

Advice & Wealth Management Segment

 

Segment Adjusted Operating Income Statements

12

Segment Metrics

13

Asset Management Segment

 

Segment Adjusted Operating Income Statements

15

Segment Metrics

16

Global Asset Management Products

17

Retail Fund Performance - Columbia

18

Retail Fund Performance - Threadneedle

19

Annuities Segment

 

Segment Adjusted Operating Income Statements

21

Segment Metrics

22

Protection Segment

 

Segment Adjusted Operating Income Statements

24

Segment Metrics

25

Corporate & Other Segment

 

Segment Adjusted Operating Income Statements

27

Eliminations

 

Adjusted Operating Income Statements

28

Balance Sheet and Ratings Information

 

Consolidated Balance Sheets

30

Capital and Ratings Information

31

Investments

32

Non-GAAP Financial Information

33

Glossary of Selected Terminology

 

Glossary of Selected Terminology - Segments

34

Glossary of Selected Terminology

35

Exhibit A

 

Disclosed Items

38

Exhibit B

 

Corporate & Other Segment Details

44

Exhibit C

 

Non-GAAP Financial Measure Reconciliations

47

Exhibit D

 

Revenue Detail by Product

50

 

2



 

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2018

 

Consolidated Results

 

3



 

Ameriprise Financial, Inc.

Statistical Supplement Presentation

First Quarter 2018

 

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

 

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

 

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

 

Effective January 1, 2018, to more clearly differentiate between GAAP and non-GAAP financial measures, the Company changed the naming convention for its non-GAAP measures from “operating” to “adjusted operating.” The definition of these measures remains unchanged.

 

The First Quarter 2018 Statistical Supplement Package (“Supplement”) for Ameriprise Financial, Inc. (“Company”) reflects the January 1, 2018 adoption of the new accounting standard, Revenue from Contracts with Customers, on a retrospective basis.

 

·               All financial statement information has been restated to reflect the adoption. The adoption resulted in changes to Net Income for earlier recognition of certain asset management performance fee revenue. Other notable change for the Advice and Wealth Management segment was to reflect certain franchise advisor revenues on a gross basis as revenue instead of as a reduction to expenses.

 

·               New table added to the Supplement provides revenue information by segment and product level.

 

4



 

Ameriprise Financial, Inc.

Consolidated GAAP Income Statements

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions, except per share amounts, unaudited)

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

1,487

 

$

1,568

 

$

1,639

 

$

1,721

 

$

1,669

 

$

1,487

 

$

1,669

 

$

182

 

12

%

$

182

 

12

%

$

(52

)

(3

)%

Distribution fees

 

441

 

425

 

435

 

456

 

468

 

441

 

468

 

27

 

6

%

27

 

6

%

12

 

3

%

Net investment income

 

391

 

391

 

372

 

355

 

396

 

391

 

396

 

5

 

1

%

5

 

1

%

41

 

12

%

Premiums

 

339

 

348

 

348

 

359

 

343

 

339

 

343

 

4

 

1

%

4

 

1

%

(16

)

(4

)%

Other revenues

 

278

 

292

 

232

 

303

 

308

 

278

 

308

 

30

 

11

%

30

 

11

%

5

 

2

%

Total revenues

 

2,936

 

3,024

 

3,026

 

3,194

 

3,184

 

2,936

 

3,184

 

248

 

8

%

248

 

8

%

(10

)

 

Banking and deposit interest expense

 

10

 

12

 

12

 

14

 

16

 

10

 

16

 

6

 

60

%

6

 

60

%

2

 

14

%

Total net revenues

 

2,926

 

3,012

 

3,014

 

3,180

 

3,168

 

2,926

 

3,168

 

242

 

8

%

242

 

8

%

(12

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

823

 

831

 

850

 

893

 

905

 

823

 

905

 

82

 

10

%

82

 

10

%

12

 

1

%

Interest credited to fixed accounts

 

162

 

171

 

176

 

147

 

141

 

162

 

141

 

(21

)

(13

)%

(21

)

(13

)%

(6

)

(4

)%

Benefits, claims, losses and settlement expenses

 

567

 

611

 

474

 

581

 

494

 

567

 

494

 

(73

)

(13

)%

(73

)

(13

)%

(87

)

(15)

%

Amortization of deferred acquisition costs

 

72

 

69

 

48

 

78

 

92

 

72

 

92

 

20

 

28

%

20

 

28

%

14

 

18

%

Interest and debt expense

 

50

 

52

 

52

 

53

 

51

 

50

 

51

 

1

 

2

%

1

 

2

%

(2

)

(4

)%

General and administrative expense

 

777

 

767

 

781

 

833

 

789

 

777

 

789

 

12

 

2

%

12

 

2

%

(44

)

(5

)%

Total expenses

 

2,451

 

2,501

 

2,381

 

2,585

 

2,472

 

2,451

 

2,472

 

21

 

1

%

21

 

1

%

(113

)

(4

)%

Pretax income

 

475

 

511

 

633

 

595

 

696

 

475

 

696

 

221

 

47

%

221

 

47

%

101

 

17

%

Income tax provision

 

72

 

118

 

126

 

418

 

102

 

72

 

102

 

30

 

42

%

30

 

42

%

(316

)

(76

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

403

 

$

393

 

$

507

 

$

177

 

$

594

 

$

403

 

$

594

 

$

191

 

47

%

$

191

 

47

%

$

417

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

337

 

$

335

 

$

340

 

$

337

 

$

329

 

$

337

 

$

329

 

$

(8

)

(2

)%

$

(8

)

(2

)%

$

(8

)

(2

)%

Realized investment gains (losses)

 

17

 

21

 

(3

)

11

 

6

 

17

 

6

 

(11

)

(65

)%

(11

)

(65

)%

(5

)

(45

)%

Affordable housing

 

(12

)

(13

)

(17

)

(58

)

(11

)

(12

)

(11

)

1

 

8

%

1

 

8

%

47

 

81

%

Other (including seed money)

 

24

 

20

 

26

 

38

 

46

 

24

 

46

 

22

 

92

%

22

 

92

%

8

 

21

%

Consolidated investment entities

 

25

 

28

 

26

 

27

 

26

 

25

 

26

 

1

 

4

%

1

 

4

%

(1

)

(4

)%

Total net investment income

 

$

391

 

$

391

 

$

372

 

$

355

 

$

396

 

$

391

 

$

396

 

$

5

 

1

%

$

5

 

1

%

$

41

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

2.56

 

$

2.53

 

$

3.31

 

$

1.17

 

$

3.97

 

$

2.56

 

$

3.97

 

$

1.41

 

55

%

$

1.41

 

55

%

$

2.80

 

#

 

Earnings per diluted share

 

$

2.52

 

$

2.50

 

$

3.26

 

$

1.15

 

$

3.91

 

$

2.52

 

$

3.91

 

$

1.39

 

55

%

$

1.39

 

55

%

$

2.76

 

#

 

Earnings per diluted share growth

 

20.6

%

26.9

%

NM

 

(53.3

)%

55.2

%

20.6

%

55.2

%

34.6

%

 

 

34.6

%

 

 

108.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

157.5

 

155.1

 

153.0

 

151.0

 

149.5

 

157.5

 

149.5

 

(8.0

)

(5

)%

(8.0

)

(5

)%

(1.5

)

(1

)%

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

 

2.6

 

2.4

 

2.4

 

2.8

 

2.6

 

2.6

 

2.6

 

 

 

 

 

(0.2

)

(7

)%

Diluted weighted average common shares outstanding

 

160.1

 

157.5

 

155.4

 

153.8

 

152.1

 

160.1

 

152.1

 

(8.0

)

(5

)%

(8.0

)

(5

)%

(1.7

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue growth

 

4.9

%

4.0

%

(0.3

)%

2.9

%

8.3

%

4.9

%

8.3

%

3.4

%

 

 

3.4

%

 

 

5.4

%

 

 

Pretax income margin

 

16.2

%

17.0

%

21.0

%

18.7

%

22.0

%

16.2

%

22.0

%

5.8

%

 

 

5.8

%

 

 

3.3

%

 

 

Effective tax rate

 

15.2

%

23.1

%

19.9

%

70.3

%

14.7

%

15.2

%

14.7

%

(0.5

)%

 

 

(0.5

)%

 

 

(55.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity / outstanding shares (1)

 

$

39.80

 

$

40.62

 

$

41.54

 

$

39.91

 

$

39.38

 

$

39.80

 

$

39.38

 

$

(0.42

)

(1

)%

$

(0.42

)

(1

)%

$

(0.53

)

(1

)%

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

 

$

38.40

 

$

38.67

 

$

39.49

 

$

38.39

 

$

39.41

 

$

38.40

 

$

39.41

 

$

1.01

 

3

%

$

1.01

 

3

%

$

1.02

 

3

%

 


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

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

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

NM   Not Meaningful

# Variance equal to or greater than 100%.

 

5



 

Ameriprise Financial, Inc.

Consolidated Adjusted Operating Results and Highlights

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions except per share amounts, unaudited)

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

$

2,926

 

$

3,012

 

$

3,014

 

$

3,180

 

$

3,168

 

$

2,926

 

$

3,168

 

$

242

 

8

%

$

242

 

8

%

$

(12

)

 

Less revenues attributable to the CIEs

 

22

 

25

 

23

 

24

 

22

 

22

 

22

 

 

 

 

 

(2

)

(8

)%

Less net realized investment gains (losses) (1)

 

17

 

21

 

(3

)

11

 

6

 

17

 

6

 

(11

)

(65

)%

(11

)

(65

)%

(5

)

(45

)%

Less market impact on indexed universal life benefits (1)

 

1

 

(3

)

(5

)

8

 

13

 

1

 

13

 

12

 

#

 

12

 

#

 

5

 

63

%

Less market impact of hedges on investments

 

1

 

(8

)

(1

)

6

 

16

 

1

 

16

 

15

 

#

 

15

 

#

 

10

 

#

 

Adjusted operating total net revenues (2)

 

$

2,885

 

$

2,977

 

$

3,000

 

$

3,131

 

$

3,111

 

$

2,885

 

$

3,111

 

$

226

 

8

%

$

226

 

8

%

$

(20

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

403

 

$

393

 

$

507

 

$

177

 

$

594

 

$

403

 

$

594

 

$

191

 

47

%

$

191

 

47

%

$

417

 

#

 

Less net income (loss) attributable to the CIEs

 

1

 

 

 

 

 

1

 

 

(1

)

#

 

(1

)

#

 

 

 

Integration/restructuring charges (3)

 

 

 

1

 

4

 

3

 

 

3

 

3

 

 

3

 

 

(1

)

(25

)%

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

 

63

 

80

 

55

 

34

 

5

 

63

 

5

 

(58

)

(92

)%

(58

)

(92

)%

(29

)

(85

)%

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

6

 

10

 

(20

)

(25

)

 

(25

)

(25

)

 

(25

)

 

(5

)

(25

)%

Market impact of hedges on investments (3) 

 

(1

)

8

 

1

 

(6)

 

(16

)

(1

)

(16

)

(15

)

#

 

(15

)

#

 

(10

)

#

 

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

 

16

 

20

 

(3

)

11

 

6

 

16

 

6

 

(10

)

(63

)%

(10

)

(63

)%

(5

)

(45

)%

Tax effect of adjustments (4) 

 

(16

)

(26

)

(25

)

 

8

 

(16

)

8

 

24

 

#

 

24

 

#

 

8

 

 

Adjusted operating earnings (2)

 

$

432

 

$

441

 

$

552

 

$

178

 

$

563

 

$

432

 

$

563

 

$

131

 

30

%

$

131

 

30

%

$

385

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

$

475

 

$

511

 

$

633

 

$

595

 

$

696

 

$

475

 

$

696

 

$

221

 

47

%

$

221

 

47

%

$

101

 

17

%

Less pretax income (loss) attributable to the CIEs

 

1

 

1

 

 

 

 

1

 

 

(1

)

#

 

(1

)

#

 

 

 

Integration/restructuring charges

 

 

 

1

 

4

 

3

 

 

3

 

3

 

 

3

 

 

(1

)

(25

)%

Market impact on variable annuity guaranteed benefits (1)

 

63

 

80

 

55

 

34

 

5

 

63

 

5

 

(58

)

(92

)%

(58

)

(92

)%

(29

)

(85

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market impact on fixed index annuity benefits (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market impact on indexed universal life benefits (1)

 

 

6

 

10

 

(20

)

(25

)

 

(25

)

(25

)

 

(25

)

 

(5

)

(25

)%

Market impact of hedges on investments

 

(1

)

8

 

1

 

(6

)

(16

)

(1

)

(16

)

(15

)

#

 

(15

)

#

 

(10

)

#

 

Less net realized investment gains (losses) (1)

 

16

 

20

 

(3

)

11

 

6

 

16

 

6

 

(10

)

(63

)%

(10

)

(63

)%

(5

)

(45

)%

Pretax adjusted operating earnings (2)

 

$

520

 

$

584

 

$

703

 

$

596

 

$

657

 

$

520

 

$

657

 

$

137

 

26

%

$

137

 

26

%

$

61

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Adjusted Operating Margin (2)(5)

 

18.0

%

19.6

%

23.4

%

19.0

%

21.1

%

18.0

%

21.1

%

3.1

%

 

 

3.1

%

 

 

2.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Effective Tax Rate (2)(6)

 

16.9

%

24.5

%

21.5

%

70.1

%

14.3

%

16.9

%

14.3

%

(2.6

)%

 

 

(2.6

)%

 

 

(55.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

157.5

 

155.1

 

153.0

 

151.0

 

149.5

 

157.5

 

149.5

 

(8.0

)

(5

)%

(8.0

)

(5

)%

(1.5

)

(1

)%

Diluted

 

160.1

 

157.5

 

155.4

 

153.8

 

152.1

 

160.1

 

152.1

 

(8.0

)

(5

)%

(8.0

)

(5

)%

(1.7

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Earnings Per Share (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic adjusted operating earnings per share

 

$

2.74

 

$

2.84

 

$

3.61

 

$

1.18

 

$

3.77

 

$

2.74

 

$

3.77

 

$

1.03

 

38

%

$

1.03

 

38

%

$

2.59

 

#

 

Adjusted operating earnings per diluted share

 

$

2.70

 

$

2.80

 

$

3.55

 

$

1.16

 

$

3.70

 

$

2.70

 

$

3.70

 

$

1.00

 

37

%

$

1.00

 

37

%

$

2.54

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity excluding AOCI (2)(6)

 

21.6

%

23.0

%

28.2

%

24.8

%

28.3

%

21.6

%

28.3

%

6.7

%

 

 

6.7

%

 

 

3.5

%

 

 

Adjusted operating return on equity excluding AOCI (2)(6)

 

23.6

%

25.2

%

30.9

%

26.9

%

29.3

%

23.6

%

29.3

%

5.7

%

 

 

5.7

%

 

 

2.4

%

 

 

 


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

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

(3)        Pretax adjusted operating adjustments

(4)        Calculated using the statutory tax rate of 35% in 2017 and 21% in 2018.

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

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

# Variance equal to or greater than 100%.

 

6



 

Ameriprise Financial, Inc.

Consolidated Adjusted Operating Results and Highlights

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

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

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Book Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

39.79

 

$

40.61

 

$

41.53

 

$

39.91

 

$

39.38

 

$

39.79

 

$

39.38

 

$

(0.41

)

(1

)%

$

(0.41

)

(1

)%

$

(0.53

)

(1

)%

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

 

$

38.39

 

$

38.67

 

$

39.48

 

$

38.38

 

$

39.41

 

$

38.39

 

$

39.41

 

$

1.02

 

3

%

$

1.02

 

3

%

$

1.03

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenue growth: Target 6 - 8%

 

2.6

%

3.3

%

0.7

%

5.6

%

7.8

%

2.6

%

7.8

%

5.2

%

 

 

5.2

%

 

 

2.2

%

 

 

Adjusted operating earnings per diluted share growth: Target 12 - 15%

 

24.4

%

25.6

%

NM

 

(57.4

)%

37.0

%

24.4

%

37.0

%

12.6

%

 

 

12.6

%

 

 

94.4

%

 

 

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

 

23.6

%

25.2

%

30.9

%

26.9

%

29.3

%

23.6

%

29.3

%

5.7

%

 

 

5.7

%

 

 

2.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

31.9

%

31.8

%

31.5

%

32.5

%

33.0

%

31.9

%

33.0

%

1.1

%

 

 

1.1

%

 

 

0.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill and Intangible Assets

 

$

1,924

 

$

1,931

 

$

1,983

 

$

2,027

 

$

2,034

 

$

1,924

 

$

2,034

 

$

110

 

6

%

$

110

 

6

%

$

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Under Management and Administration

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management AUM

 

$

211,740

 

$

221,074

 

$

233,890

 

$

246,715

 

$

249,565

 

$

211,740

 

$

249,565

 

$

37,825

 

18

%

$

37,825

 

18

%

$

2,850

 

1

%

Asset Management AUM

 

467,031

 

472,649

 

483,953

 

494,558

 

485,315

 

467,031

 

485,315

 

18,284

 

4

%

18,284

 

4

%

(9,243

)

(2

)%

Corporate AUM

 

331

 

318

 

292

 

41

 

39

 

331

 

39

 

(292

)

(88

)%

(292

)

(88

)%

(2

)

(5

)%

Eliminations

 

(24,681

)

(24,577

)

(25,883

)

(27,039

)

(26,313

)

(24,681

)

(26,313

)

(1,632

)

(7

)%

(1,632

)

(7

)%

726

 

3

%

Total Assets Under Management

 

654,421

 

669,464

 

692,252

 

714,275

 

708,606

 

654,421

 

708,606

 

54,185

 

8

%

54,185

 

8

%

(5,669

)

(1

)%

Total Assets Under Administration

 

163,165

 

165,234

 

177,203

 

182,767

 

178,621

 

163,165

 

178,621

 

15,456

 

9

%

15,456

 

9

%

(4,146

)

(2

)%

Total AUM and AUA

 

$

817,586

 

$

834,698

 

$

869,455

 

$

897,042

 

$

887,227

 

$

817,586

 

$

887,227

 

$

69,641

 

9

%

$

69,641

 

9

%

$

(9,815

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise client assets

 

$

498,907

 

$

512,035

 

$

538,662

 

$

559,692

 

$

556,694

 

$

498,907

 

$

556,694

 

$

57,787

 

12

%

$

57,787

 

12

%

$

(2,998

)

(1

)%

Total financial advisors

 

9,668

 

9,640

 

9,890

 

9,896

 

9,881

 

9,668

 

9,881

 

213

 

2

%

213

 

2

%

(15

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Flows and Net Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisor wrap

 

$

3,944

 

$

4,451

 

$

6,125

 

$

5,013

 

$

5,689

 

$

3,944

 

$

5,689

 

$

1,745

 

44

%

$

1,745

 

44

%

$

676

 

13

%

Asset Management

 

(5,629

)

(8,742

)

(4,670

)

2,357

 

(7,659

)

(5,629

)

(7,659

)

(2,030

)

(36

)%

(2,030

)

(36

)%

(10,016

)

#

 

Annuities (4)

 

(1,336

)

(1,252

)

(1,098

)

(1,144

)

(1,162

)

(1,336

)

(1,162

)

174

 

13

%

174

 

13

%

(18

)

(2

)%

Variable universal life / Universal life

 

(74

)

(52

)

(72

)

(46

)

(82

)

(74

)

(82

)

(8

)

(11

)%

(8

)

(11

)%

(36

)

(78

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

S&P 500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Daily average

 

2,324

 

2,396

 

2,465

 

2,605

 

2,733

 

2,324

 

2,733

 

409

 

18

%

409

 

18

%

128

 

5

%

Period end

 

2,363

 

2,423

 

2,519

 

2,674

 

2,641

 

2,363

 

2,641

 

278

 

12

%

278

 

12

%

(33

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Equity Index (WEI) (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Daily average

 

1,695

 

1,752

 

1,803

 

1,901

 

1,984

 

1,695

 

1,984

 

289

 

17

%

289

 

17

%

83

 

4

%

Period end

 

1,724

 

1,774

 

1,847

 

1,948

 

1,923

 

1,724

 

1,923

 

199

 

12

%

199

 

12

%

(25

)

(1

)%

 


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

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

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

(4) Excludes payout annuities.

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

NM Not Meaningful

# Variance equal to or greater than 100%.

 

7



 

 

Ameriprise Financial, Inc.

Common Share and Capital Summary

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

154.8

 

153.0

 

150.3

 

148.3

 

146.6

 

154.8

 

146.6

 

(8.2

)

(5

)%

(8.2

)

(5

)%

(1.7

)

(1

)%

Repurchases

 

(2.9

)

(2.8

)

(2.3

)

(1.9

)

(2.4

)

(2.9

)

(2.4

)

0.5

 

17

%

0.5

 

17

%

(0.5

)

(26

)%

Issuances

 

2.1

 

0.2

 

1.2

 

0.5

 

1.2

 

2.1

 

1.2

 

(0.9

)

(43

)%

(0.9

)

(43

)%

0.7

 

#

 

Other

 

(1.0

)

(0.1

)

(0.9

)

(0.3

)

(0.4

)

(1.0

)

(0.4

)

0.6

 

60

%

0.6

 

60

%

(0.1

)

(33

)%

Total common shares outstanding

 

153.0

 

150.3

 

148.3

 

146.6

 

145.0

 

153.0

 

145.0

 

(8.0

)

(5

)%

(8.0

)

(5

)%

(1.6

)

(1

)%

Restricted stock units

 

3.4

 

3.5

 

3.5

 

3.6

 

3.3

 

3.4

 

3.3

 

(0.1

)

(3

)%

(0.1

)

(3

)%

(0.3

)

(8

)%

Total basic common shares outstanding

 

156.4

 

153.8

 

151.8

 

150.2

 

148.3

 

156.4

 

148.3

 

(8.1

)

(5

)%

(8.1

)

(5

)%

(1.9

)

(1

)%

Total potentially dilutive shares

 

2.5

 

2.3

 

2.3

 

2.9

 

2.3

 

2.5

 

2.3

 

(0.2

)

(8

)%

(0.2

)

(8

)%

(0.6

)

(21

)%

Total diluted shares

 

158.9

 

156.1

 

154.1

 

153.1

 

150.6

 

158.9

 

150.6

 

(8.3

)

(5

)%

(8.3

)

(5

)%

(2.5

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Returned to Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

$

121

 

$

129

 

$

129

 

$

123

 

$

125

 

$

121

 

$

125

 

$

4

 

3

%

$

4

 

3

%

$

2

 

2

%

Common stock share repurchases

 

$

357

 

$

352

 

$

333

 

$

302

 

$

387

 

$

357

 

$

387

 

$

30

 

8

%

$

30

 

8

%

$

85

 

28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated Capital (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

$

653

 

$

661

 

$

707

 

$

710

 

$

718

 

$

653

 

$

718

 

$

65

 

10

%

$

65

 

10

%

$

8

 

1

%

Asset Management

 

1,814

 

1,822

 

1,821

 

1,868

 

1,871

 

1,814

 

1,871

 

57

 

3

%

57

 

3

%

3

 

 

Annuities

 

1,991

 

1,956

 

1,928

 

1,933

 

1,909

 

1,991

 

1,909

 

(82

)

(4

)%

(82

)

(4

)%

(24

)

(1

)%

Protection

 

1,478

 

1,460

 

1,391

 

1,339

 

1,465

 

1,478

 

1,465

 

(13

)

(1

)%

(13

)

(1

)%

126

 

9

%

Corporate & Other

 

2,918

 

2,898

 

2,996

 

2,765

 

2,731

 

2,918

 

2,731

 

(187

)

(6

)%

(187

)

(6

)%

(34

)

(1

)%

Total allocated capital

 

$

8,854

 

$

8,797

 

$

8,843

 

$

8,615

 

$

8,694

 

$

8,854

 

$

8,694

 

$

(160

)

(2

)%

$

(160

)

(2

)%

$

79

 

1

%

 


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

# Variance equal to or greater than 100%.

 

8



 

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2018

 

Segment Results

 

9



 

Ameriprise Financial, Inc.

Segment Summary

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr  Chg - 1Q

 

YTD  Chg - 1Q

 

 Seq  Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Segment Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues

 

$

1,321

 

$

1,376

 

$

1,410

 

$

1,509

 

$

1,501

 

$

1,321

 

$

1,501

 

$

180

 

14

%

$

180

 

14

%

$

(8

)

(1

)%

Adjusted operating expenses

 

1,073

 

1,085

 

1,111

 

1,184

 

1,185

 

1,073

 

1,185

 

112

 

10

%

112

 

10

%

1

 

 

Pretax adjusted operating earnings

 

$

248

 

$

291

 

$

299

 

$

325

 

$

316

 

$

248

 

$

316

 

$

68

 

27

%

$

68

 

27

%

$

(9

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

653

 

$

661

 

$

707

 

$

710

 

$

718

 

$

653

 

$

718

 

$

65

 

10

%

$

65

 

10

%

$

8

 

1

%

Adjusted operating return on allocated capital (1)

 

127.4

%

131.8

%

132.5

%

112.5

%

119.2

%

127.4

%

119.2

%

(8.2

)%

 

 

(8.2

)%

 

 

6.7

%

 

 

Pretax adjusted operating margin

 

18.8

%

21.1

%

21.2

%

21.5

%

21.1

%

18.8

%

21.1

%

2.3

%

 

 

2.3

%

 

 

(0.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues

 

$

725

 

$

747

 

$

784

 

$

816

 

$

778

 

$

725

 

$

778

 

$

53

 

7

%

$

53

 

7

%

$

(38

)

(5

)%

Adjusted operating expenses

 

575

 

571

 

580

 

606

 

583

 

575

 

583

 

8

 

1

%

8

 

1

%

(23

)

(4

)%

Pretax adjusted operating earnings

 

$

150

 

$

176

 

$

204

 

$

210

 

$

195

 

$

150

 

$

195

 

$

45

 

30

%

$

45

 

30

%

$

(15

)

(7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,814

 

$

1,822

 

$

1,821

 

$

1,868

 

$

1,871

 

$

1,814

 

$

1,871

 

$

57

 

3

%

$

57

 

3

%

$

3

 

 

Adjusted operating return on allocated capital (1)

 

28.5

%

29.3

%

30.6

%

26.3

%

28.4

%

28.5

%

28.4

%

(0.1

)%

 

 

(0.1

)%

 

 

2.1

%

 

 

Pretax adjusted operating margin

 

20.7

%

23.6

%

26.0

%

25.7

%

25.1

%

20.7

%

25.1

%

4.4

%

 

 

4.4

%

 

 

(0.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues

 

$

725

 

$

747

 

$

784

 

$

816

 

$

778

 

$

725

 

$

778

 

$

53

 

7

%

$

53

 

7

%

$

(38

)

(5

)%

Distribution pass thru revenues

 

(206

)

(194

)

(197

)

(202

)

(201

)

(206

)

(201

)

5

 

2

%

5

 

2

%

1

 

 

Subadvisory and other pass thru revenues

 

(92

)

(91

)

(91

)

(94

)

(85

)

(92

)

(85

)

7

 

8

%

7

 

8

%

9

 

10

%

Net adjusted operating revenues (2)

 

$

427

 

$

462

 

$

496

 

$

520

 

$

492

 

$

427

 

$

492

 

$

65

 

15

%

$

65

 

15

%

$

(28

)

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjusted operating earnings

 

$

150

 

$

176

 

$

204

 

$

210

 

$

195

 

$

150

 

$

195

 

$

45

 

30

%

$

45

 

30

%

$

(15

)

(7

)%

Adjusted operating net investment income

 

(4

)

(6

)

(6

)

(12

)

(2

)

(4

)

(2

)

2

 

50

%

2

 

50

%

10

 

83

%

Amortization of intangibles

 

4

 

4

 

4

 

5

 

5

 

4

 

5

 

1

 

25

%

1

 

25

%

 

 

Net adjusted operating earnings (2)

 

$

150

 

$

174

 

$

202

 

$

203

 

$

198

 

$

150

 

$

198

 

$

48

 

32

%

$

48

 

32

%

$

(5

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net pretax adjusted operating margin (2)(3)

 

35.1

%

37.7

%

40.7

%

39.0

%

40.2

%

35.1

%

40.2

%

5.1

%

 

 

5.1

%

 

 

1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues

 

$

608

 

$

627

 

$

626

 

$

638

 

$

613

 

$

608

 

$

613

 

$

5

 

1

%

$

5

 

1

%

$

(25

)

(4

)%

Adjusted operating expenses

 

469

 

485

 

345

 

490

 

481

 

469

 

481

 

12

 

3

%

12

 

3

%

(9

)

(2

)%

Pretax adjusted operating earnings

 

$

139

 

$

142

 

$

281

 

$

148

 

$

132

 

$

139

 

$

132

 

$

(7

)

(5

)%

$

(7

)

(5

)%

$

(16

)

(11

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,991

 

$

1,956

 

$

1,928

 

$

1,933

 

$

1,909

 

$

1,991

 

$

1,909

 

$

(82

)

(4

)%

$

(82

)

(4

)%

$

(24

)

(1

)%

Adjusted operating return on allocated capital (1)

 

14.3

%

13.7

%

28.0

%

24.9

%

25.0

%

14.3

%

25.0

%

10.7

%

 

 

10.7

%

 

 

0.1

%

 

 

Pretax adjusted operating margin

 

22.9

%

22.6

%

44.9

%

23.2

%

21.5

%

22.9

%

21.5

%

(1.4

)%

 

 

(1.4

)%

 

 

(1.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Protection

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues

 

$

521

 

$

517

 

$

478

 

$

528

 

$

519

 

$

521

 

$

519

 

$

(2

)

 

$

(2

)

 

$

(9

)

(2

)%

Adjusted operating expenses

 

458

 

466

 

423

 

481

 

449

 

458

 

449

 

(9

)

(2

)%

(9

)

(2

)%

(32

)

(7

)%

Pretax adjusted operating earnings

 

$

63

 

$

51

 

$

55

 

$

47

 

$

70

 

$

63

 

$

70

 

$

7

 

11

%

$

7

 

11

%

$

23

 

49

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,478

 

$

1,460

 

$

1,391

 

$

1,339

 

$

1,465

 

$

1,478

 

$

1,465

 

$

(13

)

(1

)%

$

(13

)

(1

)%

$

126

 

9

%

Adjusted operating return on allocated capital (1)

 

14.4

%

15.1

%

13.2

%

10.3

%

10.9

%

14.4

%

10.9

%

(3.5

)%

 

 

(3.5

)%

 

 

0.6

%

 

 

Pretax adjusted operating margin

 

12.1

%

9.9

%

11.5

%

8.9

%

13.5

%

12.1

%

13.5

%

1.4

%

 

 

1.4

%

 

 

4.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate & Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate excluding Long Term Care pretax adjusted operating loss

 

$

(81

)

$

(73

)

$

(78

)

$

(121

)

$

(58

)

$

(81

)

$

(58

)

$

23

 

28

%

$

23

 

28

%

$

63

 

52

%

Long Term Care pretax adjusted operating earnings (loss)

 

$

1

 

$

(3

)

$

(58

)

$

(13

)

$

2

 

$

1

 

$

2

 

$

1

 

#

 

$

1

 

#

 

$

15

 

#

 

 


(1)        Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator.  In the 4th quarter of 2017, the adjusted operating effective tax rate reflects a one-time, primarily non-cash accounting adjustment associated with the Tax Cuts and Jobs Act resulting in an effective tax rate of 70.1%.

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

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

# Variance equal to or greater than 100%.

 

10



 

Statistical Supplement Package

(unaudited)

 

First Quarter 2018

 

Advice & Wealth Management Segment

 

11



 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Advice & Wealth Management Segment Adjusted Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

723

 

$

774

 

$

801

 

$

855

 

$

848

 

$

723

 

$

848

 

$

125

 

17

%

$

125

 

17

%

$

(7

)

(1

)%

Distribution fees

 

516

 

507

 

518

 

554

 

557

 

516

 

557

 

41

 

8

%

41

 

8

%

3

 

1

%

Net investment income

 

52

 

58

 

64

 

65

 

69

 

52

 

69

 

17

 

33

%

17

 

33

%

4

 

6

%

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

40

 

49

 

39

 

49

 

43

 

40

 

43

 

3

 

8

%

3

 

8

%

(6

)

(12

)%

Total revenues

 

1,331

 

1,388

 

1,422

 

1,523

 

1,517

 

1,331

 

1,517

 

186

 

14

%

186

 

14

%

(6

)

 

Banking and deposit interest expense

 

10

 

12

 

12

 

14

 

16

 

10

 

16

 

6

 

60

%

6

 

60

%

2

 

14

%

Adjusted operating total net revenues

 

1,321

 

1,376

 

1,410

 

1,509

 

1,501

 

1,321

 

1,501

 

180

 

14

%

180

 

14

%

(8

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

777

 

789

 

813

 

866

 

869

 

777

 

869

 

92

 

12

%

92

 

12

%

3

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

2

 

3

 

2

 

2

 

3

 

2

 

3

 

1

 

50

%

1

 

50

%

1

 

50

%

General and administrative expense

 

294

 

293

 

296

 

316

 

313

 

294

 

313

 

19

 

6

%

19

 

6

%

(3

)

(1

)%

Adjusted operating expenses

 

1,073

 

1,085

 

1,111

 

1,184

 

1,185

 

1,073

 

1,185

 

112

 

10

%

112

 

10

%

1

 

 

Pretax adjusted operating earnings

 

$

248

 

$

291

 

$

299

 

$

325

 

$

316

 

$

248

 

$

316

 

$

68

 

27

%

$

68

 

27

%

$

(9

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjusted operating margin

 

18.8

%

21.1

%

21.2

%

21.5

%

21.1

%

18.8

%

21.1

%

2.3

%

 

 

2.3

%

 

 

(0.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

653

 

$

661

 

$

707

 

$

710

 

$

718

 

$

653

 

$

718

 

$

65

 

10

%

$

65

 

10

%

$

8

 

1

%

Adjusted operating return on allocated capital (1)

 

127.4

%

131.8

%

132.5

%

112.5

%

119.2

%

127.4

%

119.2

%

(8.2

)%

 

 

(8.2

)%

 

 

6.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brokerage cash balance (2)

 

$

26,240

 

$

25,597

 

$

25,483

 

$

26,238

 

$

25,443

 

$

26,240

 

$

25,443

 

$

(797

)

(3

)%

$

(797

)

(3

)%

$

(795

)

(3

)%

Brokerage sweep fee

 

0.73

%

0.97

%

1.11

%

1.14

%

1.32

%

0.73

%

1.32

%

0.59

%

 

 

0.59

%

 

 

0.18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

On-balance sheet deposits

 

$

10,328

 

$

10,210

 

$

10,439

 

$

10,316

 

$

10,252

 

$

10,328

 

$

10,252

 

$

(76

)

(1

)%

$

(76

)

(1

)%

$

(64

)

(1

)%

 


(1)        Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator.  In the 4th quarter of 2017, the adjusted operating effective tax rate reflects a one-time, primarily non-cash accounting adjustment associated with the Tax Cuts and Jobs Act resulting in an effective tax rate of 70.1%.

(2)        Brokerage cash includes both off-balance sheet and on-balance sheet deposits.  In the 1st quarter of 2017 through the 1st quarter of 2018, on-balance sheet deposits included in brokerage cash are $4.2B, $4.0B, $4.1B, $3.9B and $3.7B, respectively.

 

12



 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

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

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates and Banking - Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjusted operating earnings

 

$

15

 

$

17

 

$

19

 

$

18

 

$

17

 

$

15

 

$

17

 

$

2

 

13

%

$

2

 

13

%

$

(1

)

(6

)%

Allocated capital

 

$

339

 

$

344

 

$

351

 

$

353

 

$

361

 

$

339

 

$

361

 

$

22

 

6

%

$

22

 

6

%

$

8

 

2

%

Adjusted operating return on allocated capital (1)

 

14.6

%

14.4

%

15.5

%

13.3

%

13.6

%

14.6

%

13.6

%

(1.0

)%

 

 

(1.0

)%

 

 

0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth Management & Distribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjusted operating earnings

 

$

233

 

$

274

 

$

280

 

$

307

 

$

299

 

$

233

 

$

299

 

$

66

 

28

%

$

66

 

28

%

$

(8

)

(3

)%

Allocated capital

 

$

314

 

$

317

 

$

356

 

$

357

 

$

357

 

$

314

 

$

357

 

$

43

 

14

%

$

43

 

14

%

$

 

 

Adjusted operating return on allocated capital (1)

 

240.5

%

253.1

%

254.1

%

215.3

%

227.7

%

240.5

%

227.7

%

(12.8

)%

 

 

(12.8

)%

 

 

12.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Advisors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee advisors (2)

 

1,997

 

1,992

 

2,209

 

2,210

 

2,176

 

1,997

 

2,176

 

179

 

9

%

179

 

9

%

(34

)

(2

)%

Franchisee advisors

 

7,671

 

7,648

 

7,681

 

7,686

 

7,705

 

7,671

 

7,705

 

34

 

 

34

 

 

19

 

 

Total financial advisors

 

9,668

 

9,640

 

9,890

 

9,896

 

9,881

 

9,668

 

9,881

 

213

 

2

%

213

 

2

%

(15

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues per financial advisor (in thousands) (3)

 

$

137

 

$

143

 

$

143

 

$

152

 

$

152

 

$

137

 

$

152

 

$

15

 

11

%

$

15

 

11

%

$

 

 

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

 

$

540

 

$

552

 

$

562

 

$

575

 

$

590

 

$

540

 

$

590

 

$

50

 

9

%

$

50

 

9

%

$

15

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisor Retention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee

 

89.1

%

89.5

%

90.7

%

92.4

%

92.2

%

89.1

%

92.2

%

3.1

%

 

 

3.1

%

 

 

(0.2

)%

 

 

Franchisee

 

92.7

%

92.4

%

92.7

%

92.8

%

93.0

%

92.7

%

93.0

%

0.3

%

 

 

0.3

%

 

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Client Assets (at period end)

 

$

498,907

 

$

512,035

 

$

538,662

 

$

559,692

 

$

556,694

 

$

498,907

 

$

556,694

 

$

57,787

 

12

%

$

57,787

 

12

%

$

(2,998

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Wrap Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

201,078

 

$

212,887

 

$

222,327

 

$

235,224

 

$

248,150

 

$

201,078

 

$

248,150

 

$

47,072

 

23

%

$

47,072

 

23

%

$

12,926

 

5

%

Inflows from acquisitions (5)

 

 

 

743

 

 

 

 

 

 

 

 

 

 

 

Other net flows

 

3,944

 

4,451

 

5,382

 

5,013

 

5,689

 

3,944

 

5,689

 

1,745

 

44

%

1,745

 

44

%

676

 

13

%

Net flows

 

3,944

 

4,451

 

6,125

 

5,013

 

5,689

 

3,944

 

5,689

 

1,745

 

44

%

1,745

 

44

%

676

 

13

%

Market appreciation (depreciation) and other (6)

 

7,865

 

4,989

 

6,772

 

7,913

 

(2,865

)

7,865

 

(2,865

)

(10,730

)

#

 

(10,730

)

#

 

(10,778

)

#

 

Total wrap ending assets

 

$

212,887

 

$

222,327

 

$

235,224

 

$

248,150

 

$

250,974

 

$

212,887

 

$

250,974

 

$

38,087

 

18

%

$

38,087

 

18

%

$

2,824

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory wrap account assets ending balance (7)

 

$

210,937

 

$

220,248

 

$

233,036

 

$

245,819

 

$

248,675

 

$

210,937

 

$

248,675

 

$

37,738

 

18

%

$

37,738

 

18

%

$

2,856

 

1

%

 

 


(1)

Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator. In the 4th quarter of 2017, the adjusted operating effective tax rate reflects a one-time, primarily non-cash accounting adjustment associated with the Tax Cuts and Jobs Act resulting in an effective tax rate of 70.1%.

(2)

IPI advisors are being included in the employee advisor count.

(3)

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

(4)

Trailing twelve months is the sum of the last four quarters.

(5)

Inflows associated with acquisitions that closed during the quarter.

(6)

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

(7)

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

 

# Variance equal to or greater than 100%.

 

13



 

Statistical Supplement Package

(unaudited)

 

First Quarter 2018

 

Asset Management Segment

 

14



 

Ameriprise Financial, Inc.

Asset Management Segment

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Asset Management Segment Adjusted Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

597

 

$

624

 

$

663

 

$

685

 

$

645

 

$

597

 

$

645

 

$

48

 

8

%

$

48

 

8

%

$

(40

)

(6

)%

Distribution fees

 

121

 

112

 

111

 

114

 

114

 

121

 

114

 

(7

)

(6

)%

(7

)

(6

)%

 

 

Net investment income

 

4

 

6

 

6

 

12

 

2

 

4

 

2

 

(2

)

(50

)%

(2

)

(50

)%

(10

)

(83

)%

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

3

 

5

 

4

 

5

 

17

 

3

 

17

 

14

 

#

 

14

 

#

 

12

 

#

 

Total revenues

 

725

 

747

 

784

 

816

 

778

 

725

 

778

 

53

 

7

%

53

 

7

%

(38

)

(5

)%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues

 

725

 

747

 

784

 

816

 

778

 

725

 

778

 

53

 

7

%

53

 

7

%

(38

)

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

257

 

246

 

246

 

249

 

249

 

257

 

249

 

(8

)

(3

)%

(8

)

(3

)%

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

4

 

4

 

4

 

3

 

3

 

4

 

3

 

(1

)

(25

)%

(1

)

(25

)%

 

 

Interest and debt expense

 

5

 

6

 

5

 

6

 

6

 

5

 

6

 

1

 

20

%

1

 

20

%

 

 

General and administrative expense

 

309

 

315

 

325

 

348

 

325

 

309

 

325

 

16

 

5

%

16

 

5

%

(23

)

(7

)%

Adjusted operating expenses

 

575

 

571

 

580

 

606

 

583

 

575

 

583

 

8

 

1

%

8

 

1

%

(23

)

(4

)%

Pretax adjusted operating earnings

 

$

150

 

$

176

 

$

204

 

$

210

 

$

195

 

$

150

 

$

195

 

$

45

 

30

%

$

45

 

30

%

$

(15

)

(7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjusted operating margin

 

20.7

%

23.6

%

26.0

%

25.7

%

25.1

%

20.7

%

25.1

%

4.4

%

 

 

4.4

%

 

 

(0.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues

 

$

725

 

$

747

 

$

784

 

$

816

 

$

778

 

$

725

 

$

778

 

$

53

 

7

%

$

53

 

7

%

$

(38

)

(5

)%

Distribution pass thru revenues

 

(206

)

(194

)

(197

)

(202

)

(201

)

(206

)

(201

)

5

 

2

%

5

 

2

%

1

 

 

Subadvisory and other pass thru revenues

 

(92

)

(91

)

(91

)

(94

)

(85

)

(92

)

(85

)

7

 

8

%

7

 

8

%

9

 

10

%

Net adjusted operating revenues (1)

 

$

427

 

$

462

 

$

496

 

$

520

 

$

492

 

$

427

 

$

492

 

$

65

 

15

%

$

65

 

15

%

$

(28

)

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjusted operating earnings

 

$

150

 

$

176

 

$

204

 

$

210

 

$

195

 

$

150

 

$

195

 

$

45

 

30

%

$

45

 

30

%

$

(15

)

(7

)%

Adjusted operating net investment income

 

(4

)

(6

)

(6

)

(12

)

(2

)

(4

)

(2

)

2

 

50

%

2

 

50

%

10

 

83

%

Amortization of intangibles

 

4

 

4

 

4

 

5

 

5

 

4

 

5

 

1

 

25

%

1

 

25

%

 

 

Net adjusted operating earnings (1)

 

$

150

 

$

174

 

$

202

 

$

203

 

$

198

 

$

150

 

$

198

 

$

48

 

32

%

$

48

 

32

%

$

(5

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net pretax adjusted operating margin (1)(2)

 

35.1

%

37.7

%

40.7

%

39.0

%

40.2

%

35.1

%

40.2

%

5.1

%

 

 

5.1

%

 

 

1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Fees (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net performance fees

 

$

 

$

2

 

$

12

 

$

12

 

$

1

 

$

 

$

1

 

$

1

 

 

$

1

 

 

$

(11

)

(92

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,814

 

$

1,822

 

$

1,821

 

$

1,868

 

$

1,871

 

$

1,814

 

$

1,871

 

$

57

 

3

%

$

57

 

3

%

$

3

 

 

Adjusted operating return on allocated capital (4)

 

28.5

%

29.3

%

30.6

%

26.3

%

28.4

%

28.5

%

28.4

%

(0.1

)%

 

 

(0.1

)%

 

 

2.1

%

 

 

 


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

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

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

(4)        Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator.  In the 4th quarter of 2017, the adjusted operating effective tax rate reflects a one-time, primarily non-cash accounting adjustment associated with the Tax Cuts and Jobs Act resulting in an effective tax rate of 70.1%.

# Variance equal to or greater than 100%.

 

15



 

Ameriprise Financial, Inc.

Asset Management Segment

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Total Managed Assets by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

$

249,805

 

$

257,680

 

$

265,839

 

$

275,417

 

$

267,687

 

$

249,805

 

$

267,687

 

$

17,882

 

7

%

$

17,882

 

7

%

$

(7,730

)

(3

)%

Fixed income

 

178,365

 

176,318

 

178,006

 

173,571

 

172,127

 

178,365

 

172,127

 

(6,238

)

(3

)%

(6,238

)

(3

)%

(1,444

)

(1

)%

Money market

 

6,110

 

5,494

 

5,887

 

5,362

 

5,285

 

6,110

 

5,285

 

(825

)

(14

)%

(825

)

(14

)%

(77

)

(1

)%

Alternative

 

7,334

 

6,578

 

6,464

 

5,566

 

5,486

 

7,334

 

5,486

 

(1,848

)

(25

)%

(1,848

)

(25

)%

(80

)

(1

)%

Hybrid and other

 

25,417

 

26,579

 

27,757

 

34,642

 

34,730

 

25,417

 

34,730

 

9,313

 

37

%

9,313

 

37

%

88

 

 

Total managed assets by type

 

$

467,031

 

$

472,649

 

$

483,953

 

$

494,558

 

$

485,315

 

$

467,031

 

$

485,315

 

$

18,284

 

4

%

$

18,284

 

4

%

$

(9,243

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Managed Assets by Type (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

$

245,539

 

$

255,259

 

$

261,704

 

$

270,533

 

$

275,954

 

$

245,539

 

$

275,954

 

$

30,415

 

12

%

$

30,415

 

12

%

$

5,421

 

2

%

Fixed income

 

177,398

 

177,247

 

177,300

 

176,508

 

173,142

 

177,398

 

173,142

 

(4,256

)

(2

)%

(4,256

)

(2

)%

(3,366

)

(2

)%

Money market

 

5,976

 

5,845

 

5,826

 

5,539

 

5,474

 

5,976

 

5,474

 

(502

)

(8

)%

(502

)

(8

)%

(65

)

(1

)%

Alternative

 

7,364

 

7,126

 

6,524

 

6,092

 

5,533

 

7,364

 

5,533

 

(1,831

)

(25

)%

(1,831

)

(25

)%

(559

)

(9

)%

Hybrid and other

 

25,141

 

26,089

 

27,157

 

31,169

 

34,983

 

25,141

 

34,983

 

9,842

 

39

%

9,842

 

39

%

3,814

 

12

%

Total average managed assets by type

 

$

461,418

 

$

471,566

 

$

478,511

 

$

489,841

 

$

495,086

 

$

461,418

 

$

495,086

 

$

33,668

 

7

%

$

33,668

 

7

%

$

5,245

 

1

%

 


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

 

16



 

Ameriprise Financial, Inc.

Asset Management Segment

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Managed Assets Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Retail Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

259,919

 

$

267,320

 

$

272,902

 

$

280,749

 

$

287,803

 

$

259,919

 

$

287,803

 

$

27,884

 

11

%

$

27,884

 

11

%

$

7,054

 

3

%

Inflows

 

14,835

 

12,256

 

10,916

 

12,917

 

13,243

 

14,835

 

13,243

 

(1,592

)

(11

)%

(1,592

)

(11

)%

326

 

3

%

Outflows

 

(18,178

)

(15,161

)

(12,329

)

(14,332

)

(17,023

)

(18,178

)

(17,023

)

1,155

 

6

%

1,155

 

6

%

(2,691

)

(19

)%

Net VP/VIT fund flows

 

(960

)

(847

)

(750

)

(773

)

(750

)

(960

)

(750

)

210

 

22

%

210

 

22

%

23

 

3

%

Net new flows

 

(4,303

)

(3,752

)

(2,163

)

(2,188

)

(4,530

)

(4,303

)

(4,530

)

(227

)

(5

)%

(227

)

(5

)%

(2,342

)

#

 

Reinvested dividends

 

424

 

2,388

 

489

 

6,530

 

476

 

424

 

476

 

52

 

12

%

52

 

12

%

(6,054

)

(93

)%

Net flows

 

(3,879

)

(1,364

)

(1,674

)

4,342

 

(4,054

)

(3,879

)

(4,054

)

(175

)

(5

)%

(175

)

(5

)%

(8,396

)

#

 

Distributions

 

(600

)

(2,802

)

(689

)

(7,640

)

(657

)

(600

)

(657

)

(57

)

(10

)%

(57

)

(10

)%

6,983

 

91

%

Market appreciation (depreciation) and other

 

11,383

 

7,989

 

9,064

 

9,975

 

(2,449

)

11,383

 

(2,449

)

(13,832

)

#

 

(13,832

)

#

 

(12,424

)

#

 

Foreign currency translation (1)

 

497

 

1,759

 

1,146

 

377

 

1,446

 

497

 

1,446

 

949

 

#

 

949

 

#

 

1,069

 

#

 

Total ending assets

 

267,320

 

272,902

 

280,749

 

287,803

 

282,089

 

267,320

 

282,089

 

14,769

 

6

%

14,769

 

6

%

(5,714

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of total retail assets sub-advised

 

17.0

%

17.2

%

17.2

%

17.9

%

17.5

%

17.0

%

17.5

%

0.4

%

 

 

0.4

%

 

 

(0.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

194,494

 

199,711

 

199,747

 

203,204

 

206,755

 

194,494

 

206,755

 

12,261

 

6

%

12,261

 

6

%

3,551

 

2

%

Inflows

 

7,124

 

5,930

 

5,805

 

5,805

 

6,345

 

7,124

 

6,345

 

(779

)

(11

)%

(779

)

(11

)%

540

 

9

%

Inflows from acquisitions (2)

 

 

 

 

5,439

 

 

 

 

 

 

 

 

(5,439

)

#

 

Outflows

 

(8,874

)

(13,308

)

(8,801

)

(13,229

)

(9,950

)

(8,874

)

(9,950

)

(1,076

)

(12

)%

(1,076

)

(12

)%

3,279

 

25

%

Net flows

 

(1,750

)

(7,378

)

(2,996

)

(1,985

)

(3,605

)

(1,750

)

(3,605

)

(1,855

)

#

 

(1,855

)

#

 

(1,620

)

(82

)%

Market appreciation (depreciation) and other (3)

 

5,958

 

3,883

 

4,052

 

4,863

 

(2,866

)

5,958

 

(2,866

)

(8,824

)

#

 

(8,824

)

#

 

(7,729

)

#

 

Foreign currency translation (1)

 

1,009

 

3,531

 

2,401

 

673

 

2,942

 

1,009

 

2,942

 

1,933

 

#

 

1,933

 

#

 

2,269

 

#

 

Total ending assets

 

199,711

 

199,747

 

203,204

 

206,755

 

203,226

 

199,711

 

203,226

 

3,515

 

2

%

3,515

 

2

%

(3,529

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total managed assets

 

$

467,031

 

$

472,649

 

$

483,953

 

$

494,558

 

$

485,315

 

$

467,031

 

$

485,315

 

$

18,284

 

4

%

$

18,284

 

4

%

$

(9,243

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net flows

 

$

(5,629

)

$

(8,742

)

$

(4,670

)

$

2,357

 

$

(7,659

)

$

(5,629

)

$

(7,659

)

$

(2,030

)

(36

)%

$

(2,030

)

(36

)%

$

(10,016

)

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Former Parent Company Related (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail net new flows

 

$

(920

)

$

(765

)

$

(570

)

$

(713

)

$

(545

)

$

(920

)

$

(545

)

$

375

 

41

%

$

375

 

41

%

$

168

 

24

%

Institutional net new flows

 

(1,692

)

(6,314

)

(2,411

)

(1,819

)

(1,029

)

(1,692

)

(1,029

)

663

 

39

%

663

 

39

%

790

 

43

%

Total net new flows

 

$

(2,612

)

$

(7,079

)

$

(2,981

)

$

(2,532

)

$

(1,574

)

$

(2,612

)

$

(1,574

)

$

1,038

 

40

%

$

1,038

 

40

%

$

958

 

38

%

 

 


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

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

 

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

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

# Variance equal to or greater than 100%.

 

 

17



 

Ameriprise Financial, Inc.

Asset Management Segment - Columbia

First Quarter 2018

 

Mutual Fund Rankings in top 2 Lipper Quartiles

 

 

 

 

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

Domestic Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

69

%

78

%

72

%

69

%

57

%

 

 

3 year

 

75

%

72

%

75

%

75

%

72

%

 

 

5 year

 

71

%

78

%

78

%

69

%

69

%

Asset weighted

 

1 year

 

67

%

86

%

68

%

73

%

58

%

 

 

3 year

 

79

%

75

%

82

%

83

%

81

%

 

 

5 year

 

79

%

83

%

82

%

80

%

80

%

International Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

45

%

60

%

75

%

75

%

85

%

 

 

3 year

 

55

%

60

%

55

%

60

%

65

%

 

 

5 year

 

70

%

75

%

75

%

70

%

75

%

Asset weighted

 

1 year

 

33

%

41

%

56

%

52

%

57

%

 

 

3 year

 

44

%

48

%

44

%

47

%

46

%

 

 

5 year

 

48

%

51

%

55

%

54

%

57

%

Taxable Fixed Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

78

%

72

%

72

%

67

%

74

%

 

 

3 year

 

76

%

72

%

78

%

83

%

72

%

 

 

5 year

 

82

%

82

%

76

%

82

%

76

%

Asset weighted

 

1 year

 

70

%

73

%

74

%

69

%

80

%

 

 

3 year

 

83

%

82

%

83

%

89

%

77

%

 

 

5 year

 

88

%

89

%

87

%

89

%

82

%

Tax Exempt Fixed Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

84

%

53

%

74

%

79

%

84

%

 

 

3 year

 

89

%

89

%

89

%

89

%

89

%

 

 

5 year

 

100

%

100

%

100

%

100

%

100

%

Asset weighted

 

1 year

 

97

%

38

%

60

%

76

%

91

%

 

 

3 year

 

92

%

98

%

98

%

93

%

92

%

 

 

5 year

 

100

%

100

%

100

%

100

%

100

%

Asset Allocation Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

62

%

54

%

54

%

62

%

60

%

 

 

3 year

 

90

%

100

%

90

%

80

%

69

%

 

 

5 year

 

88

%

78

%

78

%

78

%

78

%

Asset weighted

 

1 year

 

48

%

47

%

47

%

51

%

51

%

 

 

3 year

 

100

%

100

%

94

%

94

%

90

%

 

 

5 year

 

98

%

92

%

93

%

94

%

94

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of 4- or 5-star Morningstar rated funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall

 

 

 

49

 

54

 

51

 

52

 

56

 

3 year

 

 

 

46

 

55

 

56

 

56

 

52

 

5 year

 

 

 

46

 

46

 

49

 

50

 

53

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of 4- or 5-star Morningstar rated funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall

 

 

 

52

%

56

%

50

%

51

%

53

%

3 year

 

 

 

48

%

57

%

55

%

55

%

50

%

5 year

 

 

 

49

%

49

%

49

%

51

%

54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of 4- or 5-star Morningstar rated assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall

 

 

 

63

%

65

%

58

%

60

%

61

%

3 year

 

 

 

68

%

72

%

66

%

63

%

52

%

5 year

 

 

 

63

%

56

%

57

%

59

%

61

%

 

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

 

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

 

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

 

18



 

Ameriprise Financial, Inc.

Asset Management Segment - Threadneedle

First Quarter 2018

 

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

 

 

 

 

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

30

%

54

%

48

%

59

%

57

%

 

 

3 year

 

68

%

74

%

72

%

64

%

64

%

 

 

5 year

 

70

%

65

%

72

%

63

%

61

%

Asset weighted

 

1 year

 

42

%

65

%

50

%

56

%

53

%

 

 

3 year

 

79

%

80

%

79

%

60

%

59

%

 

 

5 year

 

66

%

54

%

59

%

63

%

51

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

72

%

76

%

76

%

83

%

79

%

 

 

3 year

 

69

%

64

%

79

%

82

%

69

%

 

 

5 year

 

64

%

72

%

76

%

72

%

80

%

Asset weighted

 

1 year

 

79

%

85

%

85

%

93

%

91

%

 

 

3 year

 

90

%

84

%

90

%

95

%

89

%

 

 

5 year

 

75

%

80

%

92

%

88

%

91

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocation (Managed) Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

44

%

67

%

78

%

67

%

50

%

 

 

3 year

 

100

%

100

%

89

%

78

%

88

%

 

 

5 year

 

100

%

83

%

86

%

100

%

100

%

Asset weighted

 

1 year

 

32

%

44

%

61

%

60

%

45

%

 

 

3 year

 

100

%

100

%

94

%

97

%

99

%

 

 

5 year

 

100

%

92

%

93

%

100

%

100

%

 

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

 

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

 

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

 

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

 

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

 

19



Statistical Supplement Package

(unaudited)

 

First Quarter 2018

 

Annuities Segment

 

20



 

Ameriprise Financial, Inc.

Annuities Segment

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities Segment Adjusted Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

191

 

$

195

 

$

200

 

$

204

 

$

200

 

$

191

 

$

200

 

$

9

 

5

%

$

9

 

5

%

$

(4

)

(2

)%

Distribution fees

 

83

 

87

 

87

 

89

 

88

 

83

 

88

 

5

 

6

%

5

 

6

%

(1

)

(1

)%

Net investment income

 

179

 

175

 

173

 

170

 

164

 

179

 

164

 

(15

)

(8

)%

(15

)

(8

)%

(6

)

(4

)%

Premiums

 

27

 

33

 

24

 

32

 

24

 

27

 

24

 

(3

)

(11

)%

(3

)

(11

)%

(8

)

(25

)%

Other revenues

 

128

 

137

 

142

 

143

 

137

 

128

 

137

 

9

 

7

%

9

 

7

%

(6

)

(4

)%

Total revenues

 

608

 

627

 

626

 

638

 

613

 

608

 

613

 

5

 

1

%

5

 

1

%

(25

)

(4

)%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues

 

608

 

627

 

626

 

638

 

613

 

608

 

613

 

5

 

1

%

5

 

1

%

(25

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

102

 

107

 

105

 

114

 

110

 

102

 

110

 

8

 

8

%

8

 

8

%

(4

)

(4

)%

Interest credited to fixed accounts

 

118

 

118

 

121

 

116

 

113

 

118

 

113

 

(5

)

(4

)%

(5

)

(4

)%

(3

)

(3

)%

Benefits, claims, losses and settlement expenses

 

143

 

149

 

19

 

156

 

150

 

143

 

150

 

7

 

5

%

7

 

5

%

(6

)

(4

)%

Amortization of deferred acquisition costs

 

47

 

48

 

40

 

46

 

50

 

47

 

50

 

3

 

6

%

3

 

6

%

4

 

9

%

Interest and debt expense

 

8

 

9

 

9

 

9

 

9

 

8

 

9

 

1

 

13

%

1

 

13

%

 

 

General and administrative expense

 

51

 

54

 

51

 

49

 

49

 

51

 

49

 

(2

)

(4

)%

(2

)

(4

)%

 

 

Adjusted operating expenses

 

469

 

485

 

345

 

490

 

481

 

469

 

481

 

12

 

3

%

12

 

3

%

(9

)

(2

)%

Pretax adjusted operating earnings

 

$

139

 

$

142

 

$

281

 

$

148

 

$

132

 

$

139

 

$

132

 

$

(7

)

(5

)%

$

(7

)

(5

)%

$

(16

)

(11

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjusted operating margin

 

22.9

%

22.6

%

44.9

%

23.2

%

21.5

%

22.9

%

21.5

%

(1.4

)%

 

 

(1.4

)%

 

 

(1.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,991

 

$

1,956

 

$

1,928

 

$

1,933

 

$

1,909

 

$

1,991

 

$

1,909

 

$

(82

)

(4

)%

$

(82

)

(4

)%

$

(24

)

(1

)%

Adjusted operating return on allocated capital (1)

 

14.3

%

13.7

%

28.0

%

24.9

%

25.0

%

14.3

%

25.0

%

10.7

%

 

 

10.7

%

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market impact on variable annuity guaranteed benefits (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk margin and nonperformance spread impact

 

$

(22

)

$

(3

)

$

(7

)

$

13

 

$

28

 

$

(22

)

$

28

 

$

50

 

#

 

$

50

 

#

 

$

15

 

#

 

Other

 

(41

)

(77

)

(48

)

(47

)

(33

)

(41

)

(33

)

8

 

20

%

8

 

20

%

14

 

30

%

Total VA guaranteed benefit impact excluded from adjusted operating earnings

 

$

(63

)

$

(80

)

$

(55

)

$

(34

)

$

(5

)

$

(63

)

$

(5

)

$

58

 

92

%

$

58

 

92

%

$

29

 

85

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market impact on fixed index annuity benefits (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk margin and nonperformance spread impact

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed index annuity benefit impact excluded from adjusted operating earnings

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total annuity net flows (4)

 

$

(1,336

)

$

(1,252

)

$

(1,098

)

$

(1,144

)

$

(1,162

)

$

(1,336

)

$

(1,162

)

$

174

 

13

%

$

174

 

13

%

$

(18

)

(2

)%

 


(1)        Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator.  In the 4th quarter of 2017, the adjusted operating effective tax rate reflects a one-time, primarily non-cash accounting adjustment associated with the Tax Cuts and Jobs Act resulting in an effective tax rate of 70.1%.

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

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

(4)        Excludes payout annuities.

# Variance equal to or greater than 100%.

 

21



 

Ameriprise Financial, Inc.

Annuities Segment

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjusted operating earnings

 

$

116

 

$

127

 

$

262

 

$

134

 

$

116

 

$

116

 

$

116

 

$

 

 

$

 

 

$

(18

)

(13

)%

Allocated capital (1)

 

$

650

 

$

650

 

$

650

 

$

650

 

$

650

 

$

650

 

$

650

 

$

 

 

$

 

 

$

 

 

Adjusted operating return on allocated capital (2)

 

29.7

%

30.0

%

74.9

%

67.4

%

67.9

%

29.7

%

67.9

%

38.2

%

 

 

38.2

%

 

 

0.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Annuities (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjusted operating earnings

 

$

23

 

$

15

 

$

19

 

$

14

 

$

16

 

$

23

 

$

16

 

$

(7

)

(30

)%

$

(7

)

(30

)%

$

2

 

14

%

Allocated capital

 

$

1,341

 

$

1,306

 

$

1,278

 

$

1,283

 

$

1,259

 

$

1,341

 

$

1,259

 

$

(82

)

(6

)%

$

(82

)

(6

)%

$

(24

)

(2

)%

Adjusted operating return on allocated capital (2)

 

6.5

%

5.6

%

4.7

%

3.8

%

3.4

%

6.5

%

3.4

%

(3.1

)%

 

 

(3.1

)%

 

 

(0.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

74,817

 

$

76,365

 

$

77,397

 

$

78,654

 

$

80,340

 

$

74,817

 

$

80,340

 

$

5,523

 

7

%

$

5,523

 

7

%

$

1,686

 

2

%

Deposits

 

957

 

1,059

 

1,031

 

1,175

 

1,150

 

957

 

1,150

 

193

 

20

%

193

 

20

%

(25

)

(2

)%

Withdrawals and terminations

 

(2,027

)

(2,068

)

(1,916

)

(2,073

)

(2,069

)

(2,027

)

(2,069

)

(42

)

(2

)%

(42

)

(2

)%

4

 

 

Net flows

 

(1,070

)

(1,009

)

(885

)

(898

)

(919

)

(1,070

)

(919

)

151

 

14

%

151

 

14

%

(21

)

(2

)%

Investment performance and interest credited

 

2,618

 

2,041

 

2,142

 

2,584

 

(690

)

2,618

 

(690

)

(3,308

)

#

 

(3,308

)

#

 

(3,274

)

#

 

Total ending balance - contract accumulation values

 

$

76,365

 

$

77,397

 

$

78,654

 

$

80,340

 

$

78,731

 

$

76,365

 

$

78,731

 

$

2,366

 

3

%

$

2,366

 

3

%

$

(1,609

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable annuities fixed sub-accounts

 

$

5,212

 

$

5,203

 

$

5,187

 

$

5,166

 

$

5,139

 

$

5,212

 

$

5,139

 

$

(73

)

(1

)%

$

(73

)

(1

)%

$

(27

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Deferred Annuities Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

9,991

 

$

9,800

 

$

9,631

 

$

9,492

 

$

9,320

 

$

9,991

 

$

9,320

 

$

(671

)

(7

)%

$

(671

)

(7

)%

$

(172

)

(2

)%

Deposits

 

43

 

44

 

33

 

33

 

42

 

43

 

42

 

(1

)

(2

)%

(1

)

(2

)%

9

 

27

%

Withdrawals and terminations

 

(309

)

(287

)

(246

)

(279

)

(285

)

(309

)

(285

)

24

 

8

%

24

 

8

%

(6

)

(2

)%

Net flows

 

(266

)

(243

)

(213

)

(246

)

(243

)

(266

)

(243

)

23

 

9

%

23

 

9

%

3

 

1

%

Policyholder interest credited

 

75

 

74

 

74

 

74

 

70

 

75

 

70

 

(5

)

(7

)%

(5

)

(7

)%

(4

)

(5

)%

Total ending balance - contract accumulation values

 

$

9,800

 

$

9,631

 

$

9,492

 

$

9,320

 

$

9,147

 

$

9,800

 

$

9,147

 

$

(653

)

(7

)%

$

(653

)

(7

)%

$

(173

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized interest

 

$

1

 

$

 

$

1

 

$

 

$

 

$

1

 

$

 

$

(1

)

#

 

$

(1

)

#

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payout Annuities Reserve Balance

 

$

2,090

 

$

2,099

 

$

2,091

 

$

2,099

 

$

2,093

 

$

2,090

 

$

2,093

 

$

3

 

 

$

3

 

 

$

(6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Equivalent Spread - Fixed Deferred Annuities (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross rate of return on invested assets (5)

 

4.4

%

4.3

%

4.3

%

4.2

%

4.1

%

4.4

%

4.1

%

(0.3

)%

 

 

(0.3

)%

 

 

(0.1

)%

 

 

Crediting rate excluding capitalized interest

 

(3.1

)%

(3.1

)%

(3.1

)%

(3.1

)%

(3.1

)%

(3.1

)%

(3.1

)%

 

 

 

 

 

 

 

 

 

Tax equivalent margin spread

 

1.3

%

1.2

%

1.2

%

1.1

%

1.0

%

1.3

%

1.0

%

(0.3

)%

 

 

(0.3

)%

 

 

(0.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Variable Annuities DAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,724

 

$

1,726

 

$

1,729

 

$

1,737

 

$

1,747

 

$

1,724

 

$

1,747

 

$

23

 

1

%

$

23

 

1

%

$

10

 

1

%

Capitalization

 

34

 

40

 

39

 

43

 

42

 

34

 

42

 

8

 

24

%

8

 

24

%

(1

)

(2

)%

Non adjusted operating amortization

 

9

 

9

 

6

 

2

 

(5

)

9

 

(5

)

(14

)

#

 

(14

)

#

 

(7

)

#

 

Amortization per income statement

 

(42

)

(43

)

(36

)

(41

)

(45

)

(42

)

(45

)

(3

)

(7

)%

(3

)

(7

)%

(4

)

(10

)%

Other

 

1

 

(3

)

(1

)

6

 

15

 

1

 

15

 

14

 

#

 

14

 

#

 

9

 

#

 

Total ending balance

 

$

1,726

 

$

1,729

 

$

1,737

 

$

1,747

 

$

1,754

 

$

1,726

 

$

1,754

 

$

28

 

2

%

$

28

 

2

%

$

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Deferred Annuities DAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

76

 

$

74

 

$

68

 

$

67

 

$

71

 

$

76

 

$

71

 

$

(5

)

(7

)%

$

(5

)

(7

)%

$

4

 

6

%

Capitalization

 

1

 

 

1

 

 

1

 

1

 

1

 

 

 

 

 

1

 

 

Non adjusted operating amortization

 

(1

)

 

 

 

 

(1

)

 

1

 

#

 

1

 

#

 

 

 

Amortization per income statement

 

(5

)

(5

)

(4

)

(5

)

(5

)

(5

)

(5

)

 

 

 

 

 

 

Other

 

3

 

(1

)

2

 

9

 

16

 

3

 

16

 

13

 

#

 

13

 

#

 

7

 

78

%

Total ending balance

 

$

74

 

$

68

 

$

67

 

$

71

 

$

83

 

$

74

 

$

83

 

$

9

 

12

%

$

9

 

12

%

$

12

 

17

%

 


(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 adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator.  In the 4th quarter of 2017, the adjusted operating effective tax rate reflects a one-time, primarily non-cash accounting adjustment associated with the Tax Cuts and Jobs Act resulting in an effective tax rate of 70.1%.

(3)        Includes payout annuities.

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

(5)        In the 1st quarter of 2017 through the 1st quarter of 2018, 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 4.3%, 4.2%, 4.2%, 4.2% and 4.1% respectively.

# Variance equal to or greater than 100%.

 

22



Statistical Supplement Package

(unaudited)

 

First Quarter 2018

 

Protection Segment

 

23



 

Ameriprise Financial, Inc.

Protection Segment

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Protection Segment Adjusted Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

14

 

$

12

 

$

13

 

$

14

 

$

14

 

$

14

 

$

14

 

$

 

 

$

 

 

$

 

 

Distribution fees

 

24

 

23

 

23

 

26

 

24

 

24

 

24

 

 

 

 

 

(2

)

(8

)%

Net investment income

 

85

 

82

 

86

 

85

 

84

 

85

 

84

 

(1

)

(1

)%

(1

)

(1

)%

(1

)

(1

)%

Premiums

 

294

 

297

 

305

 

308

 

301

 

294

 

301

 

7

 

2

%

7

 

2

%

(7

)

(2

)%

Other revenues

 

104

 

103

 

51

 

95

 

96

 

104

 

96

 

(8

)

(8

)%

(8

)

(8

)%

1

 

1

%

Total revenues

 

521

 

517

 

478

 

528

 

519

 

521

 

519

 

(2

)

 

(2

)

 

(9

)

(2

)%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues

 

521

 

517

 

478

 

528

 

519

 

521

 

519

 

(2

)

 

(2

)

 

(9

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

17

 

16

 

17

 

18

 

16

 

17

 

16

 

(1

)

(6

)%

(1

)

(6

)%

(2

)

(11

)%

Interest credited to fixed accounts

 

44

 

47

 

47

 

48

 

49

 

44

 

49

 

5

 

11

%

5

 

11

%

1

 

2

%

Benefits, claims, losses and settlement expenses

 

297

 

313

 

278

 

321

 

292

 

297

 

292

 

(5

)

(2

)%

(5

)

(2

)%

(29

)

(9

)%

Amortization of deferred acquisition costs

 

28

 

29

 

13

 

26

 

25

 

28

 

25

 

(3

)

(11

)%

(3

)

(11

)%

(1

)

(4

)%

Interest and debt expense

 

6

 

6

 

7

 

6

 

6

 

6

 

6

 

 

 

 

 

 

 

General and administrative expense

 

66

 

55

 

61

 

62

 

61

 

66

 

61

 

(5

)

(8

)%

(5

)

(8

)%

(1

)

(2

)%

Adjusted operating expenses

 

458

 

466

 

423

 

481

 

449

 

458

 

449

 

(9

)

(2

)%

(9

)

(2

)%

(32

)

(7

)%

Pretax adjusted operating earnings

 

$

63

 

$

51

 

$

55

 

$

47

 

$

70

 

$

63

 

$

70

 

$

7

 

11

%

$

7

 

11

%

$

23

 

49

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjusted operating margin

 

12.1

%

9.9

%

11.5

%

8.9

%

13.5

%

12.1

%

13.5

%

1.4

%

 

 

1.4

%

 

 

4.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,478

 

$

1,460

 

$

1,391

 

$

1,339

 

$

1,465

 

$

1,478

 

$

1,465

 

$

(13

)

(1

)%

$

(13

)

(1

)%

$

126

 

9

%

Adjusted operating return on allocated capital (1)

 

14.4

%

15.1

%

13.2

%

10.3

%

10.9

%

14.4

%

10.9

%

(3.5

)%

 

 

(3.5

)%

 

 

0.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market impact on indexed universal life benefits (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk margin and nonperformance spread impact

 

$

3

 

$

6

 

$

8

 

$

(3

)

$

(17

)

$

3

 

$

(17

)

$

(20

)

#

 

$

(20

)

#

 

$

(14

)

#

 

Other

 

(3

)

(12

)

(18

)

23

 

42

 

(3

)

42

 

45

 

#

 

45

 

#

 

19

 

83

%

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

 

$

 

$

(6

)

$

(10

)

$

20

 

$

25

 

$

 

$

25

 

$

25

 

 

$

25

 

 

$

5

 

25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life and Health (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjusted operating earnings

 

$

68

 

$

69

 

$

48

 

$

73

 

$

65

 

$

68

 

$

65

 

$

(3

)

(4

)%

$

(3

)

(4

)%

$

(8

)

(11

)%

Allocated capital

 

$

817

 

$

800

 

$

769

 

$

726

 

$

818

 

$

817

 

$

818

 

$

1

 

 

$

1

 

 

$

92

 

13

%

Adjusted operating return on allocated capital (1)

 

30.5

%

29.9

%

24.7

%

21.4

%

21.3

%

30.5

%

21.3

%

(9.2

)%

 

 

(9.2

)%

 

 

(0.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto and Home Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjusted operating earnings (loss)

 

$

(5

)

$

(18

)

$

7

 

$

(26

)

$

5

 

$

(5

)

$

5

 

$

10

 

#

 

$

10

 

#

 

$

31

 

#

 

Allocated capital

 

$

661

 

$

660

 

$

622

 

$

613

 

$

647

 

$

661

 

$

647

 

$

(14

)

(2

)%

$

(14

)

(2

)%

$

34

 

6

%

Adjusted operating return on allocated capital (1)

 

(4.3

)%

(2.4

)%

(0.6

)%

(3.1

)%

(1.8

)%

(4.3

)%

(1.8

)%

2.5

%

 

 

2.5

%

 

 

1.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Auto and Home catastrophe losses

 

$

25

 

$

44

 

$

15

 

$

38

 

$

14

 

$

25

 

$

14

 

$

(11

)

(44

)%

$

(11

)

(44

)%

$

(24

)

(63

)%

 


(1)        Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator.  In the 4th quarter of 2017, the adjusted operating effective tax rate reflects a one-time, primarily non-cash accounting adjustment associated with the Tax Cuts and Jobs Act resulting in an effective tax rate of 70.1%.

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

(3)        Life and health includes captive insurance.

# Variance equal to or greater than 100%.

 

24



 

Ameriprise Financial, Inc.

Protection Segment

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL (1)

 

$

65

 

$

78

 

$

72

 

$

84

 

$

71

 

$

65

 

$

71

 

$

6

 

9

%

$

6

 

9

%

$

(13

)

(15

)%

Term and whole life

 

2

 

2

 

2

 

2

 

2

 

2

 

2

 

 

 

 

 

 

 

Disability insurance

 

1

 

1

 

1

 

1

 

1

 

1

 

1

 

 

 

 

 

 

 

Auto and home

 

271

 

283

 

305

 

270

 

273

 

271

 

273

 

2

 

1

%

2

 

1

%

3

 

1

%

Total cash sales

 

$

339

 

$

364

 

$

380

 

$

357

 

$

347

 

$

339

 

$

347

 

$

8

 

2

%

$

8

 

2

%

$

(10

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL Policyholder Account Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

11,511

 

$

11,783

 

$

12,006

 

$

12,235

 

$

12,534

 

$

11,511

 

$

12,534

 

$

1,023

 

9

%

$

1,023

 

9

%

$

299

 

2

%

Premiums and deposits

 

245

 

256

 

247

 

268

 

248

 

245

 

248

 

3

 

1

%

3

 

1

%

(20

)

(7

)%

Investment performance and interest

 

348

 

275

 

300

 

346

 

14

 

348

 

14

 

(334

)

(96

)%

(334

)

(96

)%

(332

)

(96

)%

Withdrawals and surrenders

 

(319

)

(308

)

(319

)

(314

)

(330

)

(319

)

(330

)

(11

)

(3

)%

(11

)

(3

)%

(16

)

(5

)%

Other

 

(2

)

 

1

 

(1

)

(1

)

(2

)

(1

)

1

 

50

%

1

 

50

%

 

 

Total ending balance

 

$

11,783

 

$

12,006

 

$

12,235

 

$

12,534

 

$

12,465

 

$

11,783

 

$

12,465

 

$

682

 

6

%

$

682

 

6

%

$

(69

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums by Product

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term and whole life

 

$

11

 

$

11

 

$

11

 

$

11

 

$

11

 

$

11

 

$

11

 

$

 

 

$

 

 

$

 

 

Disability insurance

 

35

 

35

 

36

 

35

 

34

 

35

 

34

 

(1

)

(3

)%

(1

)

(3

)%

(1

)

(3

)%

Auto and home

 

242

 

244

 

252

 

255

 

249

 

242

 

249

 

7

 

3

%

7

 

3

%

(6

)

(2

)%

Intercompany premiums

 

6

 

7

 

6

 

7

 

7

 

6

 

7

 

1

 

17

%

1

 

17

%

 

 

Total premiums by product

 

$

294

 

$

297

 

$

305

 

$

308

 

$

301

 

$

294

 

$

301

 

$

7

 

2

%

$

7

 

2

%

$

(7

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto and Home Insurance Details

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy count (thousands)

 

940

 

937

 

939

 

942

 

934

 

940

 

934

 

(6

)

(1

)%

(6

)

(1

)%

(8

)

(1

)%

Catastrophe loss ratio

 

9.4

%

16.0

%

5.8

%

14.9

%

5.6

%

9.4

%

5.6

%

(3.8

)%

 

 

(3.8

)%

 

 

(9.3

)%

 

 

Non-catastrophe /other loss ratio

 

78.7

%

80.1

%

80.3

%

83.6

%

80.1

%

78.7

%

80.1

%

1.4

%

 

 

1.4

%

 

 

(3.5

)%

 

 

Expense ratio

 

20.0

%

17.2

%

16.9

%

17.2

%

17.9

%

20.0

%

17.9

%

(2.1

)%

 

 

(2.1

)%

 

 

0.7

%

 

 

Combined ratio

 

108.1

%

113.3

%

103.0

%

115.7

%

103.6

%

108.1

%

103.6

%

(4.5

)%

 

 

(4.5

)%

 

 

(12.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DAC Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life and Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

821

 

$

821

 

$

819

 

$

837

 

$

839

 

$

821

 

$

839

 

$

18

 

2

%

$

18

 

2

%

$

2

 

 

Capitalization

 

19

 

21

 

20

 

24

 

20

 

19

 

20

 

1

 

5

%

1

 

5

%

(4

)

(17

)%

Non adjusted operating amortization

 

(1

)

3

 

3

 

(5

)

(9

)

(1

)

(9

)

(8

)

#

 

(8

)

#

 

(4

)

(80

)%

Amortization per income statement

 

(14

)

(15

)

 

(14

)

(12

)

(14

)

(12

)

2

 

14

%

2

 

14

%

2

 

14

%

Other

 

(4

)

(11

)

(5

)

(3

)

24

 

(4

)

24

 

28

 

#

 

28

 

#

 

27

 

#

 

Total ending balance

 

$

821

 

$

819

 

$

837

 

$

839

 

$

862

 

$

821

 

$

862

 

$

41

 

5

%

$

41

 

5

%

$

23

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life Insurance in Force

 

$

196,338

 

$

196,045

 

$

195,947

 

$

195,931

 

$

195,588

 

$

196,338

 

$

195,588

 

$

(750

)

 

$

(750

)

 

$

(343

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Amount at Risk

 

$

41,717

 

$

41,192

 

$

41,146

 

$

40,752

 

$

40,655

 

$

41,717

 

$

40,655

 

$

(1,062

)

(3

)%

$

(1,062

)

(3

)%

$

(97

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Policyholder Reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL

 

$

11,054

 

$

11,295

 

$

11,548

 

$

11,851

 

$

11,755

 

$

11,054

 

$

11,755

 

$

701

 

6

%

$

701

 

6

%

$

(96

)

(1

)%

Term and whole life

 

201

 

200

 

198

 

197

 

195

 

201

 

195

 

(6

)

(3

)%

(6

)

(3

)%

(2

)

(1

)%

Disability insurance

 

525

 

526

 

530

 

528

 

523

 

525

 

523

 

(2

)

 

(2

)

 

(5

)

(1

)%

Other insurance

 

790

 

783

 

775

 

765

 

743

 

790

 

743

 

(47

)

(6

)%

(47

)

(6

)%

(22

)

(3

)%

Auto and home loss and LAE reserves

 

610

 

599

 

589

 

611

 

599

 

610

 

599

 

(11

)

(2

)%

(11

)

(2

)%

(12

)

(2

)%

Total net policyholder reserves

 

$

13,180

 

$

13,403

 

$

13,640

 

$

13,952

 

$

13,815

 

$

13,180

 

$

13,815

 

$

635

 

5

%

$

635

 

5

%

$

(137

)

(1

)%

 


(1)        Includes lump sum deposits.

# Variance equal to or greater than 100%.

 

25



Statistical Supplement Package

(unaudited)

 

First Quarter 2018

 

Corporate & Other Segment

 

26



 

Ameriprise Financial, Inc.

Corporate & Other Segment

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Product Information (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate excluding Long Term Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues

 

$

(9

)

$

(11

)

$

(19

)

$

(56

)

$

(9

)

$

(9

)

$

(9

)

$

 

 

$

 

 

$

47

 

84

%

Adjusted operating expenses

 

72

 

62

 

59

 

65

 

49

 

72

 

49

 

(23

)

(32

)%

(23

)

(32

)%

(16

)

(25

)%

Pretax adjusted operating earnings (loss)

 

$

(81

)

$

(73

)

$

(78

)

$

(121

)

$

(58

)

$

(81

)

$

(58

)

$

23

 

28

%

$

23

 

28

%

$

63

 

52

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long Term Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues

 

$

66

 

$

66

 

$

69

 

$

67

 

$

66

 

$

66

 

$

66

 

$

 

 

$

 

 

$

(1

)

(1

)%

Adjusted operating expenses

 

65

 

69

 

127

 

80

 

64

 

65

 

64

 

(1

)

(2

)%

(1

)

(2

)%

(16

)

(20

)%

Pretax adjusted operating earnings (loss)

 

$

1

 

$

(3

)

$

(58

)

$

(13

)

$

2

 

$

1

 

$

2

 

$

1

 

#

 

$

1

 

#

 

$

15

 

#

 

Allocated capital

 

$

674

 

$

690

 

$

652

 

$

676

 

$

681

 

$

674

 

$

681

 

$

7

 

1

%

$

7

 

1

%

$

5

 

1

%

 


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

# Variance equal to or greater than 100%.

 

27



 

Ameriprise Financial, Inc.

Eliminations (1)

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Eliminations Adjusted Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

(35

)

$

(34

)

$

(35

)

$

(34

)

$

(34

)

$

(35

)

$

(34

)

$

1

 

3

%

$

1

 

3

%

$

 

 

Distribution fees

 

(303

)

(304

)

(304

)

(327

)

(315

)

(303

)

(315

)

(12

)

(4

)%

(12

)

(4

)%

12

 

4

%

Net investment income

 

 

 

(1

)

(2

)

(1

)

 

(1

)

(1

)

 

(1

)

 

1

 

50

%

Premiums

 

(9

)

(8

)

(9

)

(9

)

(8

)

(9

)

(8

)

1

 

11

%

1

 

11

%

1

 

11

%

Other revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

(347

)

(346

)

(349

)

(372

)

(358

)

(347

)

(358

)

(11

)

(3

)%

(11

)

(3

)%

14

 

4

%

Banking and deposit interest expense

 

 

(1

)

(1

)

(1

)

(1

)

 

(1

)

(1

)

 

(1

)

 

 

 

Adjusted operating total net revenues

 

(347

)

(345

)

(348

)

(371

)

(357

)

(347

)

(357

)

(10

)

(3

)%

(10

)

(3

)%

14

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

(327

)

(325

)

(329

)

(350

)

(337

)

(327

)

(337

)

(10

)

(3

)%

(10

)

(3

)%

13

 

4

%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

(3

)

(3

)

(3

)

(6

)

(4

)

(3

)

(4

)

(1

)

(33

)%

(1

)

(33

)%

2

 

33

%

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

1

 

(1

)

 

 

 

 

 

 

 

1

 

#

 

General and administrative expense

 

(17

)

(17

)

(17

)

(14

)

(16

)

(17

)

(16

)

1

 

6

%

1

 

6

%

(2

)

(14

)%

Adjusted operating expenses

 

(347

)

(345

)

(348

)

(371

)

(357

)

(347

)

(357

)

(10

)

(3

)%

(10

)

(3

)%

14

 

4

%

Pretax adjusted operating earnings

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

 


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

# Variance equal to or greater than 100%.

 

28



 

Statistical Supplement Package

(unaudited)

 

First Quarter 2018

 

Balance Sheet and Ratings Information

 

29



 

Ameriprise Financial, Inc.

Consolidated Balance Sheets

First Quarter 2018

 

(in millions, unaudited)

 

March 31, 2017

 

June 30, 2017

 

September 30, 2017

 

December 31, 2017

 

March 31, 2018

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,996

 

$

2,392

 

$

2,398

 

$

2,484

 

$

2,102

 

Cash of consolidated investment entities

 

181

 

171

 

106

 

136

 

99

 

Investments

 

35,771

 

35,935

 

36,202

 

35,925

 

35,320

 

Investments of consolidated investment entities

 

2,249

 

2,257

 

2,215

 

2,131

 

2,111

 

Separate account assets

 

82,169

 

83,661

 

85,287

 

87,368

 

85,847

 

Receivables

 

5,357

 

5,483

 

5,751

 

5,762

 

5,860

 

Receivables of consolidated investment entities

 

17

 

38

 

9

 

25

 

20

 

Deferred acquisition costs

 

2,643

 

2,637

 

2,661

 

2,676

 

2,718

 

Restricted and segregated cash and investments

 

3,403

 

3,072

 

3,131

 

3,147

 

2,818

 

Other assets

 

7,081

 

7,508

 

7,743

 

7,826

 

7,867

 

Total Assets

 

$

140,867

 

$

143,154

 

$

145,503

 

$

147,480

 

$

144,762

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Policyholder account balances, future policy benefits and claims

 

$

29,762

 

$

29,878

 

$

29,963

 

$

29,904

 

$

29,364

 

Separate account liabilities

 

82,169

 

83,661

 

85,287

 

87,368

 

85,847

 

Customer deposits

 

10,316

 

10,200

 

10,427

 

10,303

 

10,240

 

Short-term borrowings

 

200

 

200

 

201

 

200

 

201

 

Long-term debt

 

2,911

 

2,908

 

2,902

 

2,891

 

2,881

 

Debt of consolidated investment entities

 

2,339

 

2,306

 

2,265

 

2,206

 

2,174

 

Accounts payable and accrued expenses

 

1,485

 

1,615

 

1,745

 

1,975

 

1,609

 

Other liabilities

 

5,375

 

6,001

 

6,364

 

6,575

 

6,570

 

Other liabilities of consolidated investment entities

 

86

 

138

 

43

 

63

 

36

 

Total Liabilities

 

134,643

 

136,907

 

139,197

 

141,485

 

138,922

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial

 

 

 

 

 

 

 

 

 

 

 

Common shares ($.01 par)

 

3

 

3

 

3

 

3

 

3

 

Additional paid-in capital

 

7,857

 

7,903

 

8,017

 

8,085

 

8,116

 

Retained earnings

 

10,630

 

10,894

 

11,272

 

11,326

 

11,796

 

Treasury stock

 

(12,485

)

(12,852

)

(13,298

)

(13,648

)

(14,070

)

Accumulated other comprehensive income, net of tax

 

219

 

299

 

312

 

229

 

(5

)

Total Equity

 

6,224

 

6,247

 

6,306

 

5,995

 

5,840

 

Total Liabilities and Equity

 

$

140,867

 

$

143,154

 

$

145,503

 

$

147,480

 

$

144,762

 

 

30



 

Ameriprise Financial, Inc.

Capital and Ratings Information

First Quarter 2018

 

(in millions unless otherwise noted, unaudited)

 

March 31, 2017

 

June 30, 2017

 

September 30, 2017

 

December 31, 2017

 

March 31, 2018

 

Long-term Debt Summary

 

 

 

 

 

 

 

 

 

 

 

Senior notes

 

$

2,850

 

$

2,850

 

$

2,850

 

$

2,850

 

$

2,850

 

Capital lease obligations

 

47

 

44

 

41

 

38

 

34

 

Fair value of hedges, unamortized discount and debt issuance costs

 

14

 

14

 

11

 

3

 

(3

)

Total Ameriprise Financial long-term debt

 

2,911

 

2,908

 

2,902

 

2,891

 

2,881

 

Non-recourse debt of consolidated investment entities

 

2,341

 

2,308

 

2,267

 

2,208

 

2,174

 

Total long-term debt

 

$

5,252

 

$

5,216

 

$

5,169

 

$

5,099

 

$

5,055

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt

 

$

2,911

 

$

2,908

 

$

2,902

 

$

2,891

 

$

2,881

 

Fair value of hedges, unamortized discount and debt issuance costs

 

(14

)

(14

)

(11

)

(3

)

3

 

Capital lease obligations

 

(47

)

(44

)

(41

)

(38

)

(34

)

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

 

$

2,850

 

$

2,850

 

$

2,850

 

$

2,850

 

$

2,850

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity (2)

 

$

6,224

 

$

6,247

 

$

6,306

 

$

5,995

 

$

5,840

 

Equity of consolidated investment entities

 

(1

)

(1

)

(1

)

 

 

Total equity excluding CIEs (1)

 

$

6,223

 

$

6,246

 

$

6,305

 

$

5,995

 

$

5,840

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial capital

 

$

9,135

 

$

9,155

 

$

9,208

 

$

8,886

 

$

8,721

 

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

 

$

9,073

 

$

9,096

 

$

9,155

 

$

8,845

 

$

8,690

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to capital

 

 

 

 

 

 

 

 

 

 

 

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

 

31.9

%

31.8

%

31.5

%

32.5

%

33.0

%

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

 

31.4

%

31.3

%

31.1

%

32.2

%

32.8

%

 

Ratings (as of March 31, 2018 earnings release date)

 

A.M. Best
Company

 

Standard & Poor’s Rating
Services

 

Moody’s Investors
Service, Inc.

 

 

 

 

 

Claims Paying Ratings (3)

 

 

 

 

 

 

 

 

 

 

 

RiverSource Life Insurance Company

 

A+

 

AA-

 

Aa3

 

 

 

 

 

IDS Property Casualty Ins. Company

 

A

 

N/R

 

N/R

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Ratings (3)

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

 

a-

 

A

 

A3

 

 

 

 

 

 


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

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

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

N/R - Not Rated.

 

31



 

Ameriprise Financial, Inc.

Ameriprise Financial Investments (1)

First Quarter 2018

 

(in millions unless otherwise noted, unaudited)

 

March 31, 2017

 

June 30, 2017

 

September 30, 2017

 

December 31, 2017

 

March 31, 2018

 

Cash and cash equivalents

 

$

1,996

 

$

2,392

 

$

2,398

 

$

2,484

 

$

2,102

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments - Ending Balances

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale Securities

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

16,089

 

15,857

 

15,650

 

15,075

 

14,434

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage backed securities

 

6,882

 

6,921

 

6,790

 

6,611

 

5,992

 

Commercial mortgage backed securities

 

3,274

 

3,443

 

3,952

 

4,374

 

4,320

 

Asset backed securities

 

1,647

 

1,678

 

1,646

 

1,580

 

1,523

 

Total mortgage and other asset backed securities

 

11,803

 

12,042

 

12,388

 

12,565

 

11,835

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal obligations

 

2,400

 

2,423

 

2,455

 

2,463

 

2,395

 

US government and agency obligations

 

8

 

7

 

6

 

503

 

1,373

 

Foreign government bonds and obligations

 

264

 

300

 

308

 

314

 

282

 

Common and preferred stocks (2)

 

18

 

18

 

19

 

7

 

 

Total other

 

2,690

 

2,748

 

2,788

 

3,287

 

4,050

 

Total available-for-sale securities

 

30,582

 

30,647

 

30,826

 

30,927

 

30,319

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage loans

 

2,712

 

2,737

 

2,770

 

2,775

 

2,740

 

Allowance for loan losses

 

(21

)

(21

)

(21

)

(19

)

(19

)

Commercial mortgage loans, net

 

2,691

 

2,716

 

2,749

 

2,756

 

2,721

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

290

 

277

 

251

 

 

 

Allowance for loan losses

 

 

 

 

 

 

Residential mortgage loans, net

 

290

 

277

 

251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy loans

 

830

 

836

 

841

 

845

 

844

 

Other investments (2)

 

1,378

 

1,459

 

1,535

 

1,397

 

1,436

 

Total investments

 

35,771

 

35,935

 

36,202

 

35,925

 

35,320

 

Total cash, cash equivalents and investments

 

$

37,767

 

$

38,327

 

$

38,600

 

$

38,409

 

$

37,422

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gain Available-for-Sale Securities

 

$

1,282

 

$

1,452

 

$

1,508

 

$

1,435

 

$

878

 

 

 

 

 

 

 

 

 

 

 

 

 

AFS Fixed Maturity Asset Quality - %

 

 

 

 

 

 

 

 

 

 

 

AAA

 

31

%

33

%

34

%

37

%

39

%

AA

 

6

%

7

%

7

%

7

%

6

%

AFS securities AA and above

 

37

%

40

%

41

%

44

%

45

%

A

 

18

%

18

%

18

%

17

%

15

%

BBB

 

40

%

38

%

37

%

35

%

36

%

Below investment grade

 

5

%

4

%

4

%

4

%

4

%

Total AFS fixed maturity asset quality - %

 

100

%

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

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

 

5

%

4

%

4

%

4

%

4

%

 


(1)             Investments excluding investments of CIEs.

(2)             Beginning in the first quarter of 2018, equity securities, which were previously included in Available-for-Sale Securities, were reclassified to Other investments.

 

32



 

Ameriprise Financial, Inc.

 

Non-GAAP Financial Information

 

Ameriprise Financial, Inc. (the Company) prepares its financial statements in accordance with accounting principles generally accepted in the United States (U.S. GAAP).  This report includes information on both a U.S. GAAP and non-GAAP basis.  Management believes that the presentation of these non-GAAP financial measures best reflect the underlying performance of the Company and facilitate a more meaningful trend analysis.  Management uses certain of these non-GAAP measures to evaluate our financial performance on a basis comparable to that used by some securities analysts and investors. Also, certain of these non-GAAP measures are taken into consideration, to varying degrees, for purposes of business planning and analysis and certain compensation-related matters.  See the reconciliations on pages 6, 15, 47 and 48.

 

These non-GAAP measures include:

 

·             Adjusted operating earnings;

·             Adjusted operating earnings per diluted share;

·             Adjusted operating effective tax rate;

·             Adjusted operating return on equity excluding AOCI;

·             Adjusted operating total net revenues;

·             Basic adjusted operating earnings per share;

·             Net adjusted operating earnings;

·             Net adjusted operating revenues;

·             Net pretax adjusted operating margin;

·             Pretax adjusted operating earnings;

·             Pretax adjusted operating margin;

·             Return on equity excluding AOCI;

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

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

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

·             Total equity excluding AOCI;

·             Total equity excluding CIEs;

·             Total equity excluding CIEs and AOCI

 

Reclassification

 

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

 

33



 

Ameriprise Financial, Inc.

Glossary of Selected Terminology - Segments

 

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

 

Asset Management - This segment provides investment management 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 for non-U.S. investors are primarily distributed through third-party financial institutions and unaffiliated financial advisors. Retail 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, individually managed accounts, collateralized loan obligations, hedge funds or alternative strategies, collective funds and property funds. Collateralized loan obligations, hedge funds or alternative strategies and certain private funds are often classified as alternative assets. Revenues in this segment are primarily earned as fees based on managed asset balances, which are impacted by market movements, net asset flows, asset allocation and product mix. We may also earn performance fees from certain accounts where investment performance meets or exceeds certain pre-identified targets. In addition our Asset Management segment provides all intercompany asset management services for Ameriprise Financial subsidiaries. The fees for such services are reflected within the Asset Management segment results through intersegment transfer pricing. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management, Annuities and Protection segments.

 

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

 

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

 

Corporate & Other - This segment consists of net investment income or loss on corporate level assets, including excess capital held in our subsidiaries and other unallocated equity and other revenues as well as unallocated corporate expenses.  It also includes the results of our closed-block long term care business.  This segment also includes revenues and expenses of consolidated investment entities, which are excluded on an adjusted operating basis.

 

34



 

Ameriprise Financial, Inc.

Glossary of Selected Terminology

 

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

 

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

 

Adjusted 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.

 

Adjusted Operating Return on Allocated Capital - Calculated using adjusted operating earnings subject to the quarterly adjusted 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.  Adjusted 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.

 

Adjusted 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.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

35



 

Ameriprise Financial, Inc.

Glossary of Selected Terminology

 

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

 

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

 

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

 

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

 

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

 

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

 

Net New Flows - Retail fund inflows less outflows.

 

Net Pretax Adjusted Operating Margin - An internal measure designed to calculate adjusted operating margins on a basis comparable to other asset management companies. A ratio representing net adjusted operating earnings as a percentage of net adjusted operating revenues for the asset management segment.

 

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.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

36



 

Exhibit A

 

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2018

 

Disclosed Items

 

37



 

Ameriprise Financial, Inc.

Disclosed Items

1 Qtr 2018

 

Excluded from Adjusted Operating Earnings

 

 

 

Advice & Wealth
Management

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

 

 

Market Impact on

 

Market Impact on

 

 

 

Market Impact on

 

 

 

 

 

Market Impact

 

 

 

 

 

Securities

 

Securities

 

VA Guaranteed

 

Fixed Index

 

Securities

 

Indexed Universal

 

Securities

 

 

 

of Hedges

 

Integration

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Annuity Benefits (3)

 

Gains/(Losses) (1)

 

Life Benefits (4)

 

Gains/(Losses) (1)

 

CIEs (5)

 

on Investments (6)

 

Charges (7)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

(4

)

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

1

 

8

 

 

 

(1

)

 

(2

)

26

 

16

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

13

 

 

 

 

 

Total revenues

 

1

 

8

 

 

 

(1

)

13

 

(2

)

22

 

16

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

1

 

8

 

 

 

(1

)

13

 

(2

)

22

 

16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

(21

)

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

5

 

 

 

 

9

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

21

 

 

 

General and administrative expense

 

 

 

 

 

 

 

 

1

 

 

3

 

Total expenses

 

 

 

5

 

 

 

(12

)

 

22

 

 

3

 

Pretax segment income (loss)

 

$

1

 

$

8

 

$

(5

)

$

 

$

(1

)

$

25

 

$

(2

)

$

 

$

16

 

$

(3

)

 

Included in Adjusted Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Management

 

Protection

 

Corporate

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

Auto & Home

 

Department of

 

Excess Tax Benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

 

Catastrophe

 

Labor Implementation

 

from Share-

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions, unaudited)

 

Initiatives (8)

 

Losses (9)

 

Costs (10)

 

Based Payments (11)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

5

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating expenses

 

5

 

14

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjusted operating earnings

 

$

9

 

$

(14

)

$

(3

)

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax benefit (expense)

 

 

 

 

 

 

 

$

20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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

(2)        Variable annuity guaranteed benefit impacts include:

$1 million net benefit related to hedged variable annuity benefits

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

(3)        Fixed index annuity benefit impacts include:

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

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

(4)        Indexed universal life benefit impacts include:

$21 million net benefit related to hedged indexed universal life benefits

$9 million increase in DAC amortization resulting from hedged indexed universal life benefits

$13 million increase in unearned revenue reserve amortization and reinsurance accrual from hedged indexed universal life benefits

(5)        Reflects revenues and expenses of Consolidated Investment Entities

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

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

(8)        Net benefit from EMEA initiatives

(9)        Total auto and home catastrophe losses

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

(11)   Excess tax benefits (deficiencies) related to share-based compensation

 

38



 

Ameriprise Financial, Inc.

Disclosed Items

4 Qtr 2017

 

Excluded from Adjusted Operating Earnings

 

 

 

Advice & Wealth
Management

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

 

 

Market Impact on

 

Market Impact on

 

Market Impact on

 

 

 

Market Impact

 

 

 

 

 

Securities

 

Securities

 

VA Guaranteed

 

Fixed Index

 

Indexed Universal

 

 

 

of Hedges

 

Integration

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Annuity Benefits (3)

 

Life Benefits (4)

 

CIEs (5)

 

on Investments (6)

 

Charges (7)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

(3

)

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

 

 

Net investment income

 

3

 

8

 

 

 

 

27

 

6

 

 

Premiums

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

8

 

 

 

 

Total revenues

 

3

 

8

 

 

 

8

 

24

 

6

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

Total net revenues

 

3

 

8

 

 

 

8

 

24

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

(17

)

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

36

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

(2

)

 

5

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

24

 

 

 

General and administrative expense

 

 

 

 

 

 

 

 

4

 

Total expenses

 

 

 

34

 

 

(12

)

24

 

 

4

 

Pretax segment income (loss)

 

$

3

 

$

8

 

$

(34

)

$

 

$

20

 

$

 

$

6

 

$

(4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in Adjusted Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

Protection

 

Corporate

 

Consolidated

 

 

 

 

 

Market

 

Auto & Home

 

Department of

 

 

 

 

 

Excess Tax Benefits

 

 

 

 

 

 

 

Impacts

 

Catastrophe

 

Labor Implementation

 

Tax Act

 

Severance

 

from Share-

 

Tax Act

 

 

 

(in millions, unaudited)

 

to DAC/DSIC (8)

 

Losses (9)

 

Costs (10)

 

Impact (11)

 

Expense (12)

 

Based Payments (13)

 

Impact (14)

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

(51

)

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

 

 

(51

)

 

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues

 

 

 

 

(51

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

(2

)

38

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

(9

)

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

 

 

6

 

 

7

 

 

 

 

 

 

Adjusted operating expenses

 

(11

)

38

 

6

 

 

7

 

 

 

 

 

 

Pretax adjusted operating earnings

 

$

11

 

$

(38

)

$

(6

)

$

(51

)

$

(7

)

$

 

$

 

 

 

 

Tax benefit (expense)

 

 

 

 

 

 

 

 

 

 

 

$

13

 

$

(269

)

 

 

 

 


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

(2)                  Variable annuity guaranteed benefit impacts include:

$35 million net expense related to hedged variable annuity benefits

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

(3)                  Fixed index annuity benefit impacts include:

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

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

(4)                  Indexed universal life benefit impacts include:

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

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

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

(5)                  Reflects revenues and expenses of Consolidated Investment Entities

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

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

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

(9)                  Total auto and home catastrophe losses

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

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

(12)             Severance expense

(13)             Excess tax benefits (deficiencies) related to share-based compensation

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

 

39



 

Ameriprise Financial, Inc.

Disclosed Items

3 Qtr 2017

 

Excluded from Adjusted Operating Earnings

 

 

 

Asset Management

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

 

 

 

 

Market Impact on

 

 

 

Market Impact on

 

 

 

 

 

Market Impact

 

 

 

 

 

 

 

Securities

 

Securities

 

VA Guaranteed

 

Securities

 

Indexed Universal

 

Securities

 

 

 

of Hedges

 

Integration

 

 

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Gains/(Losses) (1)

 

Life Benefits (3)

 

Gains/(Losses) (1)

 

CIEs (4)

 

on Investments (5)

 

Charges (6)

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

(3

)

$

 

$

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

(1

)

3

 

 

1

 

 

(6

)

26

 

(1

)

 

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

(5

)

 

 

 

 

 

 

Total revenues

 

(1

)

3

 

 

1

 

(5

)

(6

)

23

 

(1

)

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

(1

)

3

 

 

1

 

(5

)

(6

)

23

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

8

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

61

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

(6

)

 

(3

)

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

22

 

 

 

 

 

General and administrative expense

 

 

 

 

 

 

 

1

 

 

1

 

 

 

Total expenses

 

 

 

55

 

 

5

 

 

23

 

 

1

 

 

 

Pretax segment income (loss)

 

$

(1

)

$

3

 

$

(55

)

$

1

 

$

(10

)

$

(6

)

$

 

$

(1

)

$

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in Adjusted Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

Protection

 

Corporate

 

Consolidated

 

 

 

Market

 

Valuation

 

Market

 

Valuation

 

Auto & Home

 

Valuation

 

Long Term Care

 

Department of

 

Affordable Housing

 

Excess Tax Benefits

 

 

 

Impacts

 

Assumption &

 

Impacts

 

Assumption &

 

Catastrophe

 

Assumption &

 

Loss

 

Labor Implementation

 

Investment

 

from Share-

 

(in millions, unaudited)

 

to DAC/DSIC (7)

 

Model Changes (8)

 

to DAC/DSIC (7)

 

Model Changes (8)

 

Losses (9)

 

Model Changes (8)

 

Recognition (10)

 

Costs (11)

 

Adjustment (12)

 

Based Payments (13)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

(4

)

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

(47

)

 

 

 

 

 

 

Total revenues

 

 

 

 

(47

)

 

 

 

 

(4

)

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues

 

 

 

 

(47

)

 

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

(2

)

(119

)

 

(14

)

15

 

1

 

57

 

 

 

 

Amortization of deferred acquisition costs

 

(10

)

(1

)

(1

)

(13

)

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

 

 

 

 

 

 

 

5

 

 

 

Adjusted operating expenses

 

(12

)

(120

)

(1

)

(27

)

15

 

1

 

57

 

5

 

 

 

Pretax adjusted operating earnings

 

$

12

 

$

120

 

$

1

 

$

(20

)

$

(15

)

$

(1

)

$

(57

)

$

(5

)

$

(4

)

$

 

Tax benefit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

25

 

 


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

(2)                           Variable annuity guaranteed benefit impacts include:

$61 million net expense related to hedged variable annuity benefits

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

(3)                           Indexed universal life benefit impacts include:

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

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

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

(4)                           Reflects revenues and expenses of Consolidated Investment Entities

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

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

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

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

(9)                           Total auto and home catastrophe losses

(10)                      Premium deficiency loss recognition for Long Term Care

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

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

(13)                      Excess tax benefits (deficiencies) related to share-based compensation

 

40



 

Ameriprise Financial, Inc.

Disclosed Items

2 Qtr 2017

 

Excluded from Adjusted Operating Earnings

 

 

 

Advice & Wealth
Management

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

 

 

Market Impact on

 

Market Impact on

 

 

 

Market Impact

 

 

 

Securities

 

Securities

 

VA Guaranteed

 

Indexed Universal

 

 

 

of Hedges

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Life Benefits (3)

 

CIEs (4)

 

on Investments (5)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

(3

)

$

 

Distribution fees

 

 

 

 

 

 

 

Net investment income

 

7

 

14

 

 

 

28

 

(8

)

Premiums

 

 

 

 

 

 

 

Other revenues

 

 

 

 

(3

)

 

 

Total revenues

 

7

 

14

 

 

(3

)

25

 

(8

)

Banking and deposit interest expense

 

 

 

 

 

 

 

Total net revenues

 

7

 

14

 

 

(3

)

25

 

(8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

6

 

 

 

Benefits, claims, losses and settlement expenses

 

 

1

 

89

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

(9

)

(3

)

 

 

Interest and debt expense

 

 

 

 

 

22

 

 

General and administrative expense

 

 

 

 

 

2

 

 

Total expenses

 

 

1

 

80

 

3

 

24

 

 

Pretax segment income (loss)

 

$

7

 

$

13

 

$

(80

)

$

(6

)

$

1

 

$

(8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in Adjusted Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

Protection

 

Corporate

 

Consolidated

 

 

 

 

 

 

 

 

Market

 

Auto & Home

 

Department of

 

Excess Tax Benefits

 

 

 

 

 

 

 

 

Impacts

 

Catastrophe

 

Labor Implementation

 

from Share-

 

 

 

 

 

 

(in millions, unaudited)

 

to DAC/DSIC (6)

 

Losses (7)

 

Costs (8)

 

Based Payments (9)

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

 

 

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

 

 

 

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

(2

)

44

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

(7

)

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

 

 

8

 

 

 

 

 

 

 

Adjusted operating expenses

 

(9

)

44

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjusted operating earnings

 

$

9

 

$

(44

)

$

(8

)

$

 

 

 

 

 

 

Tax benefit

 

 

 

 

 

 

 

$

4

 

 

 

 

 

 

 


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

(2)        Variable annuity guaranteed benefit impacts include:

$91 million net expense related to hedged variable annuity benefits

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

(3)        Indexed universal life benefit impacts include:

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

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

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

(4)        Reflects revenues and expenses of Consolidated Investment Entities

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

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

(7)        Total auto and home catastrophe losses

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

(9)        Excess tax benefits (deficiencies) related to share-based compensation

 

41



 

Ameriprise Financial, Inc.

Disclosed Items

1 Qtr 2017

 

Excluded from Adjusted Operating Earnings

 

 

 

Advice & Wealth
Management

 

Asset Management

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

 

 

 

 

Market Impact on

 

Market Impact on

 

 

 

Market Impact

 

 

 

Securities

 

Securities

 

Securities

 

VA Guaranteed

 

Indexed Universal

 

 

 

of Hedges

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Life Benefits (3)

 

CIEs (4)

 

on Investments (5)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

(3

)

$

 

Distribution fees

 

 

 

 

 

 

 

 

Net investment income

 

2

 

(2

)

17

 

 

 

25

 

1

 

Premiums

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

1

 

 

 

Total revenues

 

2

 

(2

)

17

 

 

1

 

22

 

1

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

Total net revenues

 

2

 

(2

)

17

 

 

1

 

22

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

72

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

1

 

(9

)

1

 

 

 

Interest and debt expense

 

 

 

 

 

 

21

 

 

General and administrative expense

 

 

 

 

 

 

 

 

Total expenses

 

 

 

1

 

63

 

1

 

21

 

 

Pretax segment income (loss)

 

$

2

 

$

(2

)

$

16

 

$

(63

)

$

 

$

1

 

$

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in Adjusted Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

Protection

 

Corporate

 

Consolidated

 

 

 

 

 

 

Market

 

Market

 

Auto & Home

 

Department of

 

Renegotiated

 

Excess Tax Benefits

 

 

 

 

 

 

Impacts

 

Impacts

 

Catastrophe

 

Labor Implementation

 

Vendor

 

from Share-

 

 

 

 

(in millions, unaudited)

 

to DAC/DSIC (6)

 

to DAC/DSIC (6)

 

Losses (7)

 

Costs (8)

 

Arrangement (9)

 

Based Payments (10)

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

 

 

 

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

(2

)

 

25

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

(8

)

(1

)

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

 

 

 

10

 

9

 

 

 

 

 

Adjusted operating expenses

 

(10

)

(1

)

25

 

10

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjusted operating earnings

 

$

10

 

$

1

 

$

(25

)

$

(10

)

$

(9

)

$

 

 

 

 

Tax benefit

 

 

 

 

 

 

 

 

 

 

 

$

28

 

 

 

 

 


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

(2)        Variable annuity guaranteed benefit impacts include:

$73 million net expense related to hedged variable annuity benefits

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

(3)        Indexed universal life benefit impacts include:

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

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

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

(4)        Reflects revenues and expenses of Consolidated Investment Entities

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

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

(7)        Total auto and home catastrophe losses

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

(9)        Renegotiation of a vendor arrangement

(10)   Excess tax benefits (deficiencies) related to share-based compensation

 

42



 

Exhibit B

 

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2018

 

Corporate & Other Segment Details

 

43



 

Ameriprise Financial, Inc.

Corporate Excluding Long Term Care

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Corporate Excluding Long Term Care Adjusted Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

(11

)

(11

)

(19

)

(58

)

(10

)

(11

)

(10

)

1

 

9

%

1

 

9

%

48

 

83

%

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

2

 

1

 

1

 

3

 

2

 

2

 

2

 

 

 

 

 

(1

)

(33

)%

Total revenues

 

(9

)

(10

)

(18

)

(55

)

(8

)

(9

)

(8

)

1

 

11

%

1

 

11

%

47

 

85

%

Banking and deposit interest expense

 

 

1

 

1

 

1

 

1

 

 

1

 

1

 

 

1

 

 

 

 

Adjusted operating total net revenues

 

(9

)

(11

)

(19

)

(56

)

(9

)

(9

)

(9

)

 

 

 

 

47

 

84

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

5

 

4

 

3

 

4

 

3

 

5

 

3

 

(2

)

(40

)%

(2

)

(40

)%

(1

)

(25

)%

General and administrative expense

 

67

 

58

 

55

 

61

 

46

 

67

 

46

 

(21

)

(31

)%

(21

)

(31

)%

(15

)

(25

)%

Adjusted operating expenses

 

72

 

62

 

59

 

65

 

49

 

72

 

49

 

(23

)

(32

)%

(23

)

(32

)%

(16

)

(25

)%

Pretax adjusted operating earnings (loss)

 

$

(81

)

$

(73

)

$

(78

)

$

(121

)

$

(58

)

$

(81

)

$

(58

)

$

23

 

28

%

$

23

 

28

%

$

63

 

52

%

 

44



 

Ameriprise Financial, Inc.

Long Term Care

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 1Q

 

YTD Chg - 1Q

 

Seq Qtr Chg - 1Q

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Long Term Care Adjusted Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

39

 

40

 

41

 

39

 

40

 

39

 

40

 

1

 

3

%

1

 

3

%

1

 

3

%

Premiums

 

27

 

26

 

28

 

28

 

26

 

27

 

26

 

(1

)

(4

)%

(1

)

(4

)%

(2

)

(7

)%

Other revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

66

 

66

 

69

 

67

 

66

 

66

 

66

 

 

 

 

 

(1

)

(1

)%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating total net revenues

 

66

 

66

 

69

 

67

 

66

 

66

 

66

 

 

 

 

 

(1

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

(3

)

(2

)

(3

)

(4

)

(2

)

(3

)

(2

)

1

 

33

%

1

 

33

%

2

 

50

%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

58

 

62

 

119

 

74

 

56

 

58

 

56

 

(2

)

(3

)%

(2

)

(3

)%

(18

)

(24

)%

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

3

 

2

 

3

 

3

 

3

 

3

 

3

 

 

 

 

 

 

 

General and administrative expense

 

7

 

7

 

8

 

7

 

7

 

7

 

7

 

 

 

 

 

 

 

Adjusted operating expenses

 

65

 

69

 

127

 

80

 

64

 

65

 

64

 

(1

)

(2

)%

(1

)

(2

)%

(16

)

(20

)%

Pretax adjusted operating earnings (loss)

 

$

1

 

$

(3

)

$

(58

)

$

(13

)

$

2

 

$

1

 

$

2

 

$

1

 

#

 

$

1

 

#

 

$

15

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Policyholder Long Term Care Reserves (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active Life Reserves

 

$

1,902

 

$

1,946

 

$

2,039

 

$

2,087

 

$

2,036

 

$

1,902

 

$

2,036

 

$

134

 

7

%

$

134

 

7

%

$

(51

)

(2

)%

Disabled Life Reserves

 

472

 

480

 

490

 

504

 

507

 

472

 

507

 

35

 

7

%

35

 

7

%

3

 

1

%

Total net policyholder long term care reserves

 

$

2,374

 

$

2,426

 

$

2,529

 

$

2,591

 

$

2,543

 

$

2,374

 

$

2,543

 

$

169

 

7

%

$

169

 

7

%

$

(48

)

(2

)%

 


(1)        SFAS 115 requires GAAP reserves to include all unrealized gains on available for sale securities in the portfolio to be reported as if they were realized on the last day of the accounting period with all financial impacts flowing through other comprehensive income.

# Variance equal to or greater than 100%.

 

45



 

Exhibit C

 

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2018

 

Non-GAAP Financial Measure Reconciliations

 

46



 

Ameriprise Financial, Inc.

Non-GAAP Financial Measure Reconciliations

First Quarter 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-date

 

(in millions unless otherwise noted, unaudited)

 

1 Qtr 2017

 

2 Qtr 2017

 

3 Qtr 2017

 

4 Qtr 2017

 

1 Qtr 2018

 

2017

 

2018

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (last twelve months)

 

$

1,352

 

$

1,410

 

$

1,702

 

$

1,480

 

$

1,671

 

$

1,352

 

$

1,671

 

Less adjustments (1)

 

(128

)

(132

)

(165

)

(123

)

(63

)

(128

)

(63

)

Adjusted operating earnings (last twelve months)

 

$

1,480

 

$

1,542

 

$

1,867

 

$

1,603

 

$

1,734

 

$

1,480

 

$

1,734

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

6,681

 

$

6,518

 

$

6,367

 

$

6,212

 

$

6,122

 

$

6,681

 

$

6,122

 

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

 

418

 

390

 

325

 

252

 

210

 

418

 

210

 

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

 

6,263

 

6,128

 

6,042

 

5,960

 

5,912

 

6,263

 

5,912

 

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

 

1

 

1

 

1

 

 

1

 

1

 

1

 

Adjusted operating equity (five point quarter end average)

 

$

6,262

 

$

6,127

 

$

6,041

 

$

5,960

 

$

5,911

 

$

6,262

 

$

5,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity excluding AOCI

 

21.6

%

23.0

%

28.2

%

24.8

%

28.3

%

21.6

%

28.3

%

Adjusted operating return on equity excluding AOCI

 

23.6

%

25.2

%

30.9

%

26.9

%

29.3

%

23.6

%

29.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective Tax Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

$

475

 

$

511

 

$

633

 

$

595

 

$

696

 

$

475

 

$

696

 

Less adjustments (2)

 

(45

)

(73

)

(70

)

(1

)

39

 

(45

)

39

 

Pretax adjusted operating earnings

 

$

520

 

$

584

 

$

703

 

$

596

 

$

657

 

$

520

 

$

657

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

$

72

 

$

118

 

$

126

 

$

418

 

$

102

 

$

72

 

$

102

 

Adjusted operating income tax provision

 

$

88

 

$

143

 

$

151

 

$

418

 

$

94

 

$

88

 

$

94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

15.2

%

23.1

%

19.9

%

70.3

%

14.7

%

15.2

%

14.7

%

Adjusted operating effective tax rate

 

16.9

%

24.5

%

21.5

%

70.1

%

14.3

%

16.9

%

14.3

%

 


(1)             Adjustments reflect the trailing twelve months’ sum of after-tax net realized investment gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on variable annuity guaranteed benefits, net of hedges and the related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact on fixed index annuity benefits, net of hedges and the related DAC amortization; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration/restructuring charges; and net income (loss) from consolidated investment entities. After-tax is calculated using the statutory tax rate of 35% in 2017 and 21% in 2018.

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

 

47



 

Ameriprise Financial, Inc.

Non-GAAP Financial Measure Reconciliations

First Quarter 2018

 

(in millions unless otherwise noted, unaudited)

 

March 31, 2017

 

June 30, 2017

 

September 30, 2017

 

December 31, 2017

 

March 31, 2018

 

Long-term Debt Summary

 

 

 

 

 

 

 

 

 

 

 

Senior notes

 

$

2,850

 

$

2,850

 

$

2,850

 

$

2,850

 

$

2,850

 

Capital lease obligations

 

47

 

44

 

41

 

38

 

34

 

Fair value of hedges, unamortized discount and debt issuance costs

 

14

 

14

 

11

 

3

 

(3

)

Total Ameriprise Financial long-term debt

 

2,911

 

2,908

 

2,902

 

2,891

 

2,881

 

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

 

14

 

14

 

11

 

3

 

(3

)

Less capital lease obligations

 

47

 

44

 

41

 

38

 

34

 

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

 

$

2,850

 

$

2,850

 

$

2,850

 

$

2,850

 

$

2,850

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Summary

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

$

6,224

 

$

6,247

 

$

6,306

 

$

5,995

 

$

5,840

 

Less equity of consolidated investment entities

 

1

 

1

 

1

 

 

 

Total equity excluding CIEs

 

$

6,223

 

$

6,246

 

$

6,305

 

$

5,995

 

$

5,840

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Summary

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt

 

$

2,911

 

$

2,908

 

$

2,902

 

$

2,891

 

$

2,881

 

Total equity

 

6,224

 

6,247

 

6,306

 

5,995

 

5,840

 

Total Ameriprise Financial capital

 

9,135

 

9,155

 

9,208

 

8,886

 

8,721

 

Less equity of consolidated investment entities

 

1

 

1

 

1

 

 

 

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

 

14

 

14

 

11

 

3

 

(3

)

Less capital lease obligations

 

47

 

44

 

41

 

38

 

34

 

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

 

$

9,073

 

$

9,096

 

$

9,155

 

$

8,845

 

$

8,690

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

31.9

%

31.8

%

31.5

%

32.5

%

33.0

%

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

 

31.4

%

31.3

%

31.1

%

32.2

%

32.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

$

6,224

 

$

6,247

 

$

6,306

 

$

5,995

 

$

5,840

 

AOCI

 

219

 

299

 

312

 

229

 

(5

)

Retained earnings attributable to CIEs

 

1

 

1

 

1

 

1

 

1

 

AOCI attributable to CIEs

 

 

 

 

(1

)

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

$

6,224

 

$

6,247

 

$

6,306

 

$

5,995

 

$

5,840

 

Less AOCI

 

219

 

299

 

312

 

229

 

(5

)

Total equity excluding AOCI

 

$

6,005

 

$

5,948

 

$

5,994

 

$

5,766

 

$

5,845

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

$

6,224

 

$

6,247

 

$

6,306

 

$

5,995

 

$

5,840

 

Less retained earnings attributable to CIEs

 

1

 

1

 

1

 

1

 

1

 

Less AOCI

 

219

 

299

 

312

 

229

 

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity excluding CIEs and AOCI

 

$

6,004

 

$

5,947

 

$

5,993

 

$

5,765

 

$

5,844

 

 

48



 

Exhibit D

 

 

Statistical Supplement Package

(unaudited)

 

First Quarter 2018

 

Revenue Detail by Product

 

49



 

Ameriprise Financial, Inc.

Revenue From Contracts With Customers

Three Month Period Ended March 31, 2018

 

(in millions, unaudited)

 

Advice & Wealth
Management

 

Asset
Management

 

Annuities

 

Protection

 

Corporate & Other

 

Total Segments

 

Non Adjusted
Operating
Revenue

 

Total

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

 

$

480

 

$

 

$

 

$

 

$

480

 

$

 

$

480

 

Institutional

 

 

111

 

 

 

 

111

 

 

111

 

Advisory fees

 

691

 

 

 

 

 

691

 

 

691

 

Financial planning fees

 

68

 

 

 

 

 

68

 

 

68

 

Transaction and other fees

 

89

 

48

 

14

 

2

 

 

153

 

 

153

 

Total management and financial advice fees

 

848

 

639

 

14

 

2

 

 

1,503

 

 

1,503

 

Distribution Fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

190

 

69

 

 

 

 

259

 

 

259

 

Insurance and annuity

 

222

 

45

 

84

 

8

 

 

359

 

 

359

 

Other products

 

145

 

 

 

 

 

145

 

 

145

 

Total distribution fees

 

557

 

114

 

84

 

8

 

 

763

 

 

763

 

Other revenues

 

41

 

1

 

 

 

 

42

 

 

42

 

Total revenue from contracts with customers

 

1,446

 

754

 

98

 

10

 

 

2,308

 

 

2,308

 

Revenue from other sources

 

71

 

24

 

515

 

509

 

58

 

1,177

 

61

 

1,238

 

Total segment gross revenues

 

1,517

 

778

 

613

 

519

 

58

 

3,485

 

61

 

3,546

 

Banking and deposit interest expense

 

16

 

 

 

 

1

 

17

 

 

17

 

Total segment net revenues

 

1,501

 

778

 

613

 

519

 

57

 

3,468

 

61

 

3,529

 

Less: intersegment revenues

 

240

 

12

 

90

 

16

 

(1

)

357

 

4

 

361

 

Total net revenues

 

$

1,261

 

$

766

 

$

523

 

$

503

 

$

58

 

$

3,111

 

$

57

 

$

3,168

 

 

50



 

Ameriprise Financial, Inc.

Revenue From Contracts With Customers

Three Month Period Ended December 31, 2017

 

(in millions, unaudited)

 

Advice & Wealth
Management

 

Asset
Management

 

Annuities

 

Protection

 

Corporate & Other

 

Total Segments

 

Non Adjusted
Operating
Revenue

 

Total

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

 

$

484

 

$

 

$

 

$

 

$

484

 

$

 

$

484

 

Institutional

 

 

148

 

 

 

 

148

 

 

148

 

Advisory fees

 

677

 

 

 

 

 

677

 

 

677

 

Financial planning fees

 

87

 

 

 

 

 

87

 

 

87

 

Transaction and other fees

 

91

 

47

 

15

 

2

 

 

155

 

 

155

 

Total management and financial advice fees

 

855

 

679

 

15

 

2

 

 

1,551

 

 

1,551

 

Distribution Fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

193

 

70

 

 

 

 

263

 

 

263

 

Insurance and annuity

 

234

 

44

 

85

 

8

 

 

371

 

 

371

 

Other products

 

127

 

 

 

 

 

127

 

 

127

 

Total distribution fees

 

554

 

114

 

85

 

8

 

 

761

 

 

761

 

Other revenues

 

45

 

1

 

 

 

 

46

 

 

46

 

Total revenue from contracts with customers

 

1,454

 

794

 

100

 

10

 

 

2,358

 

 

2,358

 

Revenue from other sources

 

69

 

22

 

538

 

518

 

12

 

1,159

 

52

 

1,211

 

Total segment gross revenues

 

1,523

 

816

 

638

 

528

 

12

 

3,517

 

52

 

3,569

 

Banking and deposit interest expense

 

14

 

 

 

 

1

 

15

 

 

15

 

Total segment net revenues

 

1,509

 

816

 

638

 

528

 

11

 

3,502

 

52

 

3,554

 

Less: intersegment revenues

 

252

 

12

 

92

 

16

 

(1

)

371

 

3

 

374

 

Total net revenues

 

$

1,257

 

$

804

 

$

546

 

$

512

 

$

12

 

$

3,131

 

$

49

 

$

3,180

 

 

51



 

Ameriprise Financial, inc.

Revenue From Contracts With Customers

Three Month Period Ended September 30, 2017

 

(in millions, unaudited)

 

Advice & Wealth
Management

 

Asset
Management

 

Annuities

 

Protection

 

Corporate & Other

 

Total Segments

 

Non Adjusted
Operating
Revenue

 

Total

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

 

$

467

 

$

 

$

 

$

 

$

467

 

$

 

$

467

 

Institutional

 

 

140

 

 

 

 

140

 

 

140

 

Advisory fees

 

641

 

 

 

 

 

641

 

 

641

 

Financial planning fees

 

71

 

 

 

 

 

71

 

 

71

 

Transaction and other fees

 

89

 

51

 

14

 

3

 

 

157

 

 

157

 

Total management and financial advice fees

 

801

 

658

 

14

 

3

 

 

1,476

 

 

1,476

 

Distribution Fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

186

 

68

 

 

 

 

254

 

 

254

 

Insurance and annuity

 

212

 

43

 

82

 

10

 

 

347

 

 

347

 

Other products

 

120

 

 

 

 

 

120

 

 

120

 

Total distribution fees

 

518

 

111

 

82

 

10

 

 

721

 

 

721

 

Other revenues

 

36

 

 

 

 

 

36

 

 

36

 

Total revenue from contracts with customers

 

1,355

 

769

 

96

 

13

 

 

2,233

 

 

2,233

 

Revenue from other sources

 

67

 

15

 

530

 

465

 

51

 

1,128

 

18

 

1,146

 

Total segment gross revenues

 

1,422

 

784

 

626

 

478

 

51

 

3,361

 

18

 

3,379

 

Banking and deposit interest expense

 

12

 

 

 

 

1

 

13

 

 

13

 

Total segment net revenues

 

1,410

 

784

 

626

 

478

 

50

 

3,348

 

18

 

3,366

 

Less: intersegment revenues

 

233

 

12

 

88

 

16

 

(1

)

348

 

4

 

352

 

Total net revenues

 

$

1,177

 

$

772

 

$

538

 

$

462

 

$

51

 

$

3,000

 

$

14

 

$

3,014

 

 

52



 

Ameriprise Financial, Inc.

Revenue From Contracts With Customers

Three Month Period Ended June 30, 2017

 

(in millions, unaudited)

 

Advice & Wealth
Management

 

Asset
Management

 

Annuities

 

Protection

 

Corporate & Other

 

Total Segments

 

Non Adjusted
Operating
Revenue

 

Total

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

 

$

460

 

$

 

$

 

$

 

$

460

 

$

 

$

460

 

Institutional

 

 

106

 

 

 

 

106

 

 

106

 

Advisory fees

 

606

 

 

 

 

 

606

 

 

606

 

Financial planning fees

 

75

 

 

 

 

 

75

 

 

75

 

Transaction and other fees

 

93

 

53

 

15

 

1

 

 

162

 

 

162

 

Total management and financial advice fees

 

774

 

619

 

15

 

1

 

 

1,409

 

 

1,409

 

Distribution Fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

178

 

71

 

 

 

 

249

 

 

249

 

Insurance and annuity

 

210

 

41

 

82

 

7

 

 

340

 

 

340

 

Other products

 

119

 

 

 

 

 

119

 

 

119

 

Total distribution fees

 

507

 

112

 

82

 

7

 

 

708

 

 

708

 

Other revenues

 

46

 

 

 

 

 

46

 

 

46

 

Total revenue from contracts with customers

 

1,327

 

731

 

97

 

8

 

 

2,163

 

 

2,163

 

Revenue from other sources

 

61

 

16

 

530

 

509

 

56

 

1,172

 

39

 

1,211

 

Total segment gross revenues

 

1,388

 

747

 

627

 

517

 

56

 

3,335

 

39

 

3,374

 

Banking and deposit interest expense

 

12

 

 

 

 

1

 

13

 

 

13

 

Total segment net revenues

 

1,376

 

747

 

627

 

517

 

55

 

3,322

 

39

 

3,361

 

Less: intersegment revenues

 

231

 

12

 

87

 

15

 

 

345

 

4

 

349

 

Total net revenues

 

$

1,145

 

$

735

 

$

540

 

$

502

 

$

55

 

$

2,977

 

$

35

 

$

3,012

 

 

53



 

Ameriprise Financial, Inc.

Revenue From Contracts With Customers

Three Month Period Ended March 31, 2017

 

(in millions, unaudited)

 

Advice & Wealth
Management

 

Asset
Management

 

Annuities

 

Protection

 

Corporate & Other

 

Total Segments

 

Non Adjusted
Operating
Revenue

 

Total

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

 

$

440

 

$

 

$

 

$

 

$

440

 

$

 

$

440

 

Institutional

 

 

101

 

 

 

 

101

 

 

101

 

Advisory fees

 

570

 

 

 

 

 

570

 

 

570

 

Financial planning fees

 

64

 

 

 

 

 

64

 

 

64

 

Transaction and other fees

 

89

 

51

 

13

 

2

 

 

155

 

 

155

 

Total management and financial advice fees

 

723

 

592

 

13

 

2

 

 

1,330

 

 

1,330

 

Distribution Fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

208

 

80

 

 

 

 

288

 

 

288

 

Insurance and annuity

 

199

 

41

 

78

 

8

 

 

326

 

 

326

 

Other products

 

109

 

 

 

 

 

109

 

 

109

 

Total distribution fees

 

516

 

121

 

78

 

8

 

 

723

 

 

723

 

Other revenues

 

37

 

1

 

 

 

 

38

 

 

38

 

Total revenue from contracts with customers

 

1,276

 

714

 

91

 

10

 

 

2,091

 

 

2,091

 

Revenue from other sources

 

55

 

11

 

517

 

511

 

57

 

1,151

 

45

 

1,196

 

Total segment gross revenues

 

1,331

 

725

 

608

 

521

 

57

 

3,242

 

45

 

3,287

 

Banking and deposit interest expense

 

10

 

 

 

 

 

10

 

 

10

 

Total segment net revenues

 

1,321

 

725

 

608

 

521

 

57

 

3,232

 

45

 

3,277

 

Less: intersegment revenues

 

237

 

11

 

84

 

15

 

 

347

 

4

 

351

 

Total net revenues

 

$

1,084

 

$

714

 

$

524

 

$

506

 

$

57

 

$

2,885

 

$

41

 

$

2,926

 

 

54