Exhibit 99.2
Statistical Supplement Package
(unaudited)
Fourth Quarter 2009
1
Ameriprise Financial, Inc.
Statistical Supplement Information
Table of Contents
| Page |
Ameriprise Financial, Inc. | |
Highlights | 4 |
Financial Summary | 5 |
Consolidated Income Statements | 6 |
Consolidated, Per Share Summary | 8 |
Advice & Wealth Management Segment | |
Segment Income Statements | 10 |
Segment Metrics | 11 |
Asset Management Segment | |
Segment Income Statements | 13 |
Segment Metrics | 14 |
Domestic Asset Management Products | 15 |
International Asset Management Products | 16 |
Annuities Segment | |
Segment Income Statements | 18 |
Segment Metrics | 19 |
Protection Segment | |
Segment Income Statements | 21 |
Segment Metrics | 22 |
Corporate & Other Segment | |
Segment Income Statements | 24 |
Eliminations | |
Income Statements | 25 |
Balance Sheet and Ratings Information | |
Consolidated Balance Sheets | 27 |
Capital and Ratings Information | 28 |
Investments | 29 |
Non-GAAP Financial Information | 30 |
Glossary of Selected Terminology | |
Glossary of Selected Terminology - Segments | 31 |
Glossary of Selected Terminology | 32 |
Exhibit A | |
Return on Equity | 34 |
Exhibit B | |
Disclosed Items | 36 |
Exhibit C | |
Prior Statistical Supplement Reconciliation Tables | 41 |
2
Statistical Supplement Package
(unaudited)
Fourth Quarter 2009
Consolidated Results
3
Ameriprise Financial, Inc.
Highlights
Fourth Quarter 2009
| | | | | | | | | | | | | | Prior Year Comparisons | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions, except earnings per share amounts, | | | | | | | | | | | | | | | | | | | | | | | | | | | |
headcount and as otherwise noted, unaudited) | | 4 Qtr 2008 | | 1 Qtr 2009 | | 2 Qtr 2009 | | 3 Qtr 2009 | | 4 Qtr 2009 | | 2008 | | 2009 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Management Targets | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenue growth: Target 6 - 8% | | (40.9 | )% | (13.8 | )% | (4.6 | )% | 19.7 | % | 70.0 | % | (18.7 | )% | 12.9 | % | 110.9 | % | | | 31.6 | % | | | 50.3 | % | | |
Return on equity: Target 12 - 15% | | (0.5 | )% | (1.4 | )% | (3.1 | )% | 1.6 | % | 9.3 | % | (0.5 | )% | 9.3 | % | 9.8 | % | | | 9.8 | % | | | 7.7 | % | | |
Earnings per diluted share growth: Target 12 - 15% | | NM | | (29.3 | )% | (55.9 | )% | NM | | NM | | NM | | NM | | NM | | | | NM | | | | NM | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Margins | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income (loss) margin (1) | | (50.3 | )% | 7.8 | % | 6.1 | % | 17.5 | % | 14.6 | % | (6.1 | )% | 11.8 | % | 64.9 | % | | | 17.9 | % | | | (2.9 | )% | | |
Net income (loss) attributable to Ameriprise Financial margin (1) | | (27.6 | )% | 7.6 | % | 5.1 | % | 13.4 | % | 10.4 | % | (0.5 | )% | 9.3 | % | 38.0 | % | | | 9.8 | % | | | (3.0 | )% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings Per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings (loss) per share | | $ | (1.69 | ) | $ | 0.58 | | $ | 0.41 | | $ | 1.00 | | $ | 0.92 | | $ | (0.17 | ) | $ | 2.98 | | $ | 2.61 | | | # | $ | 3.15 | | | # | $ | (0.08 | ) | (8 | )% |
Earnings (loss) per diluted share | | $ | (1.69 | ) | $ | 0.58 | | $ | 0.41 | | $ | 1.00 | | $ | 0.90 | | $ | (0.17 | ) | $ | 2.95 | | $ | 2.59 | | | # | $ | 3.12 | | | # | $ | (0.10 | ) | (10 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Share Information | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total common outstanding | | 216.5 | | 219.1 | | 255.0 | | 255.1 | | 255.1 | | 216.5 | | 255.1 | | 38.6 | | 18 | % | 38.6 | | 18 | % | — | | — | |
Nonforfeitable restricted stock units | | 1.9 | | 4.6 | | 4.2 | | 3.7 | | 3.8 | | 1.9 | | 3.8 | | 1.9 | | | # | 1.9 | | | # | 0.1 | | 3 | % |
Total potentially dilutive | | 2.1 | | 0.7 | | 1.4 | | 2.5 | | 4.8 | | 2.1 | | 4.8 | | 2.7 | | | # | 2.7 | | | # | 2.3 | | 92 | % |
Total diluted shares | | 220.5 | | 224.4 | | 260.6 | | 261.3 | | 263.7 | | 220.5 | | 263.7 | | 43.2 | | 20 | % | 43.2 | | 20 | % | 2.4 | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average common shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | 218.5 | | 222.3 | | 228.8 | | 258.7 | | 258.9 | | 222.3 | | 242.2 | | 40.4 | | 18 | % | 19.9 | | 9 | % | 0.2 | | — | |
Diluted | | 220.3 | | 223.5 | | 230.0 | | 260.7 | | 263.3 | | 224.9 | | 244.4 | | 43.0 | | 20 | % | 19.5 | | 9 | % | 2.6 | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ameriprise Financial shareholders equity - end of period | | $ | 6,178 | | $ | 6,384 | | $ | 8,110 | | $ | 9,049 | | $ | 9,273 | | $ | 6,178 | | $ | 9,273 | | $ | 3,095 | | 50 | % | $ | 3,095 | | 50 | % | $ | 224 | | 2 | % |
Total client assets | | 241,363 | | 231,298 | | 258,393 | | 286,590 | | 294,027 | | 241,363 | | 294,027 | | 52,664 | | 22 | % | 52,664 | | 22 | % | 7,437 | | 3 | % |
Total financial advisors | | 12,486 | | 12,466 | | 12,508 | | 12,314 | | 12,036 | | 12,486 | | 12,036 | | (450 | ) | (4 | )% | (450 | ) | (4 | )% | (278 | ) | (2 | )% |
Net revenue per financial advisor (in thousands) | | $ | 46 | | $ | 58 | | $ | 63 | | $ | 68 | | $ | 73 | | $ | 266 | | $ | 262 | | $ | 27 | | 59 | % | $ | (4 | ) | (2 | )% | $ | 5 | | 7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Owned, Managed, and Administered Assets (in billions) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Owned | | $ | 31.7 | | $ | 29.6 | | $ | 32.5 | | $ | 36.0 | | $ | 36.9 | | $ | 31.7 | | $ | 36.9 | | $ | 5.2 | | 16 | % | $ | 5.2 | | 16 | % | $ | 0.9 | | 3 | % |
Managed | | | | | | | | | | | | | | | | | | | | | | | | | | | |
External clients | | 209.4 | | 196.4 | | 222.2 | | 247.7 | | 256.6 | | 209.4 | | 256.6 | | 47.2 | | 23 | % | 47.2 | | 23 | % | 8.9 | | 4 | % |
Owned | | 55.5 | | 56.9 | | 62.8 | | 67.7 | | 69.2 | | 55.5 | | 69.2 | | 13.7 | | 25 | % | 13.7 | | 25 | % | 1.5 | | 2 | % |
Total managed | | 264.9 | | 253.3 | | 285.0 | | 315.4 | | 325.8 | | 264.9 | | 325.8 | | 60.9 | | 23 | % | 60.9 | | 23 | % | 10.4 | | 3 | % |
Administered | | 75.5 | | 71.1 | | 79.8 | | 88.5 | | 95.1 | | 75.5 | | 95.1 | | 19.6 | | 26 | % | 19.6 | | 26 | % | 6.6 | | 7 | % |
Total OMA assets | | $ | 372.1 | | $ | 354.0 | | $ | 397.3 | | $ | 439.9 | | $ | 457.8 | | $ | 372.1 | | $ | 457.8 | | $ | 85.7 | | 23 | % | $ | 85.7 | | 23 | % | $ | 17.9 | | 4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends paid | | $ | 38 | | $ | 37 | | $ | 38 | | $ | 43 | | $ | 46 | | $ | 143 | | $ | 164 | | $ | 8 | | 21 | % | $ | 21 | | 15 | % | $ | 3 | | 7 | % |
Common stock share repurchases | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 614 | | $ | — | | $ | — | | — | | $ | (614 | ) | | # | $ | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Debt to total capital | | 24.7 | % | 23.1 | % | 23.1 | % | 18.7 | % | 19.5 | % | 24.7 | % | 19.5 | % | (5.2 | )% | | | (5.2 | )% | | | 0.8 | % | | |
Debt to total capital excluding non-recourse debt (1) | | 24.1 | % | 22.4 | % | 22.2 | % | 17.1 | % | 16.7 | % | 24.1 | % | 16.7 | % | (7.4 | )% | | | (7.4 | )% | | | (0.4 | )% | | |
Debt to total capital excluding non-recourse debt and 75% equity credit (1) | | 19.8 | % | 19.3 | % | 19.9 | % | 14.8 | % | 14.5 | % | 19.8 | % | 14.5 | % | (5.3 | )% | | | (5.3 | )% | | | (0.3 | )% | | |
(1) See non-GAAP Financial Information.
# Variance of 100% or greater.
4
Ameriprise Financial, Inc.
Financial Summary
Fourth Quarter 2009
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2008 | | 1 Qtr 2009 | | 2 Qtr 2009 | | 3 Qtr 2009 | | 4 Qtr 2009 | | 2008 | | 2009 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Segment Summary | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advice & Wealth Management | | $ | 578 | | $ | 726 | | $ | 785 | | $ | 832 | | $ | 873 | | $ | 3,110 | | $ | 3,216 | | $ | 295 | | 51 | % | $ | 106 | | 3 | % | $ | 41 | | 5 | % |
Asset Management | | 265 | | 248 | | 285 | | 330 | | 505 | | 1,289 | | 1,368 | | 240 | | 91 | % | 79 | | 6 | % | 175 | | 53 | % |
Annuities | | 310 | | 492 | | 562 | | 591 | | 620 | | 1,618 | | 2,265 | | 310 | | | # | 647 | | 40 | % | 29 | | 5 | % |
Protection | | 450 | | 496 | | 497 | | 450 | | 528 | | 1,954 | | 1,971 | | 78 | | 17 | % | 17 | | 1 | % | 78 | | 17 | % |
Corporate & Other | | (15 | ) | 29 | | (5 | ) | (11 | ) | (11 | ) | (1 | ) | 2 | | 4 | | 27 | % | 3 | | | # | — | | — | |
Eliminations | | (253 | ) | (275 | ) | (250 | ) | (246 | ) | (246 | ) | (1,054 | ) | (1,017 | ) | 7 | | 3 | % | 37 | | 4 | % | — | | — | |
Total net revenues | | 1,335 | | 1,716 | | 1,874 | | 1,946 | | 2,269 | | 6,916 | | 7,805 | | 934 | | 70 | % | 889 | | 13 | % | 323 | | 17 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advice & Wealth Management | | 765 | | 787 | | 788 | | 820 | | 855 | | 3,259 | | 3,250 | | 90 | | 12 | % | (9 | ) | — | | 35 | | 4 | % |
Asset Management (2) | | 263 | | 256 | | 297 | | 320 | | 435 | | 1,212 | | 1,308 | | 172 | | 65 | % | 96 | | 8 | % | 115 | | 36 | % |
Annuities | | 682 | | 363 | | 468 | | 323 | | 463 | | 1,905 | | 1,617 | | (219 | ) | (32 | )% | (288 | ) | (15 | )% | 140 | | 43 | % |
Protection | | 417 | | 384 | | 387 | | 305 | | 399 | | 1,602 | | 1,475 | | (18 | ) | (4 | )% | (127 | ) | (8 | )% | 94 | | 31 | % |
Corporate & Other | | 102 | | 53 | | 61 | | 84 | | 69 | | 363 | | 267 | | (33 | ) | (32 | )% | (96 | ) | (26 | )% | (15 | ) | (18 | )% |
Eliminations | | (253 | ) | (275 | ) | (250 | ) | (246 | ) | (246 | ) | (1,054 | ) | (1,017 | ) | 7 | | 3 | % | 37 | | 4 | % | — | | — | |
Total expenses | | 1,976 | | 1,568 | | 1,751 | | 1,606 | | 1,975 | | 7,287 | | 6,900 | | (1 | ) | — | | (387 | ) | (5 | )% | 369 | | 23 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income (loss) attributable to Ameriprise Financial | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advice & Wealth Management | | (187 | ) | (61 | ) | (3 | ) | 12 | | 18 | | (149 | ) | (34 | ) | 205 | | | # | 115 | | 77 | % | 6 | | 50 | % |
Asset Management | | 2 | | (8 | ) | (12 | ) | 10 | | 70 | | 77 | | 60 | | 68 | | | # | (17 | ) | (22 | )% | 60 | | | # |
Annuities | | (372 | ) | 129 | | 94 | | 268 | | 157 | | (287 | ) | 648 | | 529 | | | # | 935 | | | # | (111 | ) | (41 | )% |
Protection | | 33 | | 112 | | 110 | | 145 | | 129 | | 352 | | 496 | | 96 | | | # | 144 | | 41 | % | (16 | ) | (11 | )% |
Corporate & Other | | (117 | ) | (24 | ) | (66 | ) | (95 | ) | (80 | ) | (364 | ) | (265 | ) | 37 | | 32 | % | 99 | | 27 | % | 15 | | 16 | % |
Eliminations | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Pretax income (loss) attributable to Ameriprise Financial | | $ | (641 | ) | $ | 148 | | $ | 123 | | $ | 340 | | $ | 294 | | $ | (371 | ) | $ | 905 | | $ | 935 | | | # | $ | 1,276 | | | # | $ | (46 | ) | (14 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax Income (Loss) Margin (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advice & Wealth Management | | (32.4 | )% | (8.4 | )% | (0.4 | )% | 1.4 | % | 2.1 | % | (4.8 | )% | (1.1 | )% | 34.5 | % | | | 3.7 | % | | | 0.7 | % | | |
Asset Management | | 0.8 | % | (3.2 | )% | (4.2 | )% | 3.0 | % | 13.9 | % | 6.0 | % | 4.4 | % | 13.1 | % | | | (1.6 | )% | | | 10.9 | % | | |
Annuities | | (120.0 | )% | 26.2 | % | 16.7 | % | 45.3 | % | 25.3 | % | (17.7 | )% | 28.6 | % | 145.3 | % | | | 46.3 | % | | | (20.0 | )% | | |
Protection | | 7.3 | % | 22.6 | % | 22.1 | % | 32.2 | % | 24.4 | % | 18.0 | % | 25.2 | % | 17.1 | % | | | 7.2 | % | | | (7.8 | )% | | |
Ameriprise Financial, Inc. | | (50.3 | )% | 7.8 | % | 6.1 | % | 17.5 | % | 14.6 | % | (6.1 | )% | 11.8 | % | 64.9 | % | | | 17.9 | % | | | (2.9 | )% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advice & Wealth Management | | $ | 879 | | $ | 833 | | $ | 825 | | $ | 784 | | $ | 747 | | $ | 879 | | $ | 747 | | $ | (132 | ) | (15 | )% | $ | (132 | ) | (15 | )% | $ | (37 | ) | (5 | )% |
Asset Management | | 1,184 | | 1,039 | | 1,043 | | 1,059 | | 1,054 | | 1,184 | | 1,054 | | (130 | ) | (11 | )% | (130 | ) | (11 | )% | (5 | ) | — | |
Annuities | | 2,754 | | 2,774 | | 2,093 | | 2,322 | | 2,459 | | 2,754 | | 2,459 | | (295 | ) | (11 | )% | (295 | ) | (11 | )% | 137 | | 6 | % |
Protection | | 2,339 | | 2,388 | | 2,450 | | 2,463 | | 2,540 | | 2,339 | | 2,540 | | 201 | | 9 | % | 201 | | 9 | % | 77 | | 3 | % |
Corporate & Other | | 115 | | 484 | | 2,087 | | 2,144 | | 2,210 | | 115 | | 2,210 | | 2,095 | | | # | 2,095 | | | # | 66 | | 3 | % |
Total allocated equity | | $ | 7,271 | | $ | 7,518 | | $ | 8,498 | | $ | 8,772 | | $ | 9,010 | | $ | 7,271 | | $ | 9,010 | | $ | 1,739 | | 24 | % | $ | 1,739 | | 24 | % | $ | 238 | | 3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on Allocated Equity (1) (3) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advice & Wealth Management | | (10.3 | )% | (19.4 | )% | (23.8 | )% | (18.0 | )% | (2.7 | )% | (10.3 | )% | (2.7 | )% | 7.6 | % | | | 7.6 | % | | | 15.3 | % | | |
Asset Management | | 5.6 | % | 3.6 | % | (0.2 | )% | (0.5 | )% | 3.6 | % | 5.6 | % | 3.6 | % | (2.0 | )% | | | (2.0 | )% | | | 4.1 | % | | |
Annuities | | (8.4 | )% | (5.5 | )% | (5.0 | )% | 3.2 | % | 17.0 | % | (8.4 | )% | 17.0 | % | 25.4 | % | | | 25.4 | % | | | 13.8 | % | | |
Protection | | 9.7 | % | 9.9 | % | 9.7 | % | 10.7 | % | 13.2 | % | 9.7 | % | 13.2 | % | 3.5 | % | | | 3.5 | % | | | 2.5 | % | | |
(1) See non-GAAP Financial Information.
(2) Total expenses include net income (loss) attributable to noncontrolling interest.
(3) Calculated using the statutory tax rate of 35%.
# Variance of 100% or greater.
5
Ameriprise Financial, Inc.
Consolidated Income Statements
Fourth Quarter 2009
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2008 | | 1 Qtr 2009 | | 2 Qtr 2009 | | 3 Qtr 2009 | | 4 Qtr 2009 | | 2008 | | 2009 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | 607 | | $ | 554 | | $ | 606 | | $ | 689 | | $ | 855 | | $ | 2,899 | | $ | 2,704 | | $ | 248 | | 41 | % | $ | (195 | ) | (7 | )% | $ | 166 | | 24 | % |
Distribution fees | | 334 | | 311 | | 351 | | 367 | | 391 | | 1,565 | | 1,420 | | 57 | | 17 | % | (145 | ) | (9 | )% | 24 | | 7 | % |
Net investment income | | (32 | ) | 418 | | 511 | | 538 | | 535 | | 817 | | 2,002 | | 567 | | | # | 1,185 | | | # | (3 | ) | (1 | )% |
Premiums | | 271 | | 266 | | 269 | | 276 | | 287 | | 1,048 | | 1,098 | | 16 | | 6 | % | 50 | | 5 | % | 11 | | 4 | % |
Other revenues | | 202 | | 209 | | 175 | | 109 | | 229 | | 766 | | 722 | | 27 | | 13 | % | (44 | ) | (6 | )% | 120 | | | # |
Total revenues | | 1,382 | | 1,758 | | 1,912 | | 1,979 | | 2,297 | | 7,095 | | 7,946 | | 915 | | 66 | % | 851 | | 12 | % | 318 | | 16 | % |
Banking and deposit interest expense | | 47 | | 42 | | 38 | | 33 | | 28 | | 179 | | 141 | | (19 | ) | (40 | )% | (38 | ) | (21 | )% | (5 | ) | (15 | )% |
Total net revenues | | 1,335 | | 1,716 | | 1,874 | | 1,946 | | 2,269 | | 6,916 | | 7,805 | | 934 | | 70 | % | 889 | | 13 | % | 323 | | 17 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | 413 | | 384 | | 432 | | 462 | | 504 | | 1,912 | | 1,782 | | 91 | | 22 | % | (130 | ) | (7 | )% | 42 | | 9 | % |
Interest credited to fixed accounts | | 203 | | 205 | | 237 | | 232 | | 229 | | 790 | | 903 | | 26 | | 13 | % | 113 | | 14 | % | (3 | ) | (1 | )% |
Benefits, claims, losses and settlement expenses | | 331 | | 100 | | 587 | | 306 | | 349 | | 1,125 | | 1,342 | | 18 | | 5 | % | 217 | | 19 | % | 43 | | 14 | % |
Amortization of deferred acquisition costs | | 395 | | 286 | | (125 | ) | (64 | ) | 120 | | 933 | | 217 | | (275 | ) | (70 | )% | (716 | ) | (77 | )% | 184 | | | # |
Interest and debt expense | | 28 | | 26 | | 28 | | 45 | | 28 | | 109 | | 127 | | — | | — | | 18 | | 17 | % | (17 | ) | (38 | )% |
General and administrative expense | | 636 | | 581 | | 600 | | 625 | | 708 | | 2,472 | | 2,514 | | 72 | | 11 | % | 42 | | 2 | % | 83 | | 13 | % |
Total expenses | | 2,006 | | 1,582 | | 1,759 | | 1,606 | | 1,938 | | 7,341 | | 6,885 | | (68 | ) | (3 | )% | (456 | ) | (6 | )% | 332 | | 21 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income (loss) | | (671 | ) | 134 | | 115 | | 340 | | 331 | | (425 | ) | 920 | | 1,002 | | | # | 1,345 | | | # | (9 | ) | (3 | )% |
Income tax provision (benefit) | | (272 | ) | 18 | | 28 | | 80 | | 57 | | (333 | ) | 183 | | 329 | | | # | 516 | | | # | (23 | ) | (29 | )% |
Net income (loss) | | (399 | ) | 116 | | 87 | | 260 | | 274 | | (92 | ) | 737 | | 673 | | | # | 829 | | | # | 14 | | 5 | % |
Less: Net loss attributable to noncontrolling interest | | (30 | ) | (14 | ) | (8 | ) | — | | 37 | | (54 | ) | 15 | | 67 | | | # | 69 | | | # | 37 | | — | |
Net income (loss) attributable to Ameriprise Financial | | $ | (369 | ) | $ | 130 | | $ | 95 | | $ | 260 | | $ | 237 | | $ | (38 | ) | $ | 722 | | $ | 606 | | | # | $ | 760 | | | # | $ | (23 | ) | (9 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income Statement Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income (loss) margin (1) | | (50.3 | )% | 7.8 | % | 6.1 | % | 17.5 | % | 14.6 | % | (6.1 | )% | 11.8 | % | 64.9 | % | | | 17.9 | % | | | (2.9 | )% | | |
Net income (loss) attributable to Ameriprise Financial margin (1) | | (27.6 | )% | 7.6 | % | 5.1 | % | 13.4 | % | 10.4 | % | (0.5 | )% | 9.3 | % | 38.0 | % | | | 9.8 | % | | | (3.0 | )% | | |
(1) See non-GAAP Financial Information.
# Variance of 100% or greater.
6
Ameriprise Financial, Inc.
Consolidated Income Statements
Fourth Quarter 2009
| | | | | | | | | | | | | | Prior Year Comparisons | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2008 | | 1 Qtr 2009 | | 2 Qtr 2009 | | 3 Qtr 2009 | | 4 Qtr 2009 | | 2008 | | 2009 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Net Investment Income | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment income on fixed maturities | | $ | 389 | | $ | 395 | | $ | 478 | | $ | 507 | | $ | 499 | | $ | 1,606 | | $ | 1,879 | | $ | 110 | | 28 | % | $ | 273 | | 17 | % | $ | (8 | ) | (2 | )% |
Realized gains (losses) | | (409 | ) | 15 | | 6 | | 14 | | 18 | | (777 | ) | 53 | | 427 | | | # | 830 | | | # | 4 | | 29 | % |
Other (including seed money) | | (12 | ) | 8 | | 27 | | 17 | | 18 | | (12 | ) | 70 | | 30 | | | # | 82 | | | # | 1 | | 6 | % |
Total net investment income | | $ | (32 | ) | $ | 418 | | $ | 511 | | $ | 538 | | $ | 535 | | $ | 817 | | $ | 2,002 | | $ | 567 | | | # | $ | 1,185 | | | # | $ | (3 | ) | (1 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other Information | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenue growth: Target 6 - 8% | | (40.9 | )% | (13.8 | )% | (4.6 | )% | 19.7 | % | 70.0 | % | (18.7 | )% | 12.9 | % | 110.9 | % | | | 31.6 | % | | | 50.3 | % | | |
Return on equity | | (0.5 | )% | (1.4 | )% | (3.1 | )% | 1.6 | % | 9.3 | % | (0.5 | )% | 9.3 | % | 9.8 | % | | | 9.8 | % | | | 7.7 | % | | |
Earnings per diluted share growth: Target 12 - 15% | | NM | | (29.3 | )% | (55.9 | )% | NM | | NM | | NM | | NM | | NM | | | | NM | | | | NM | | | |
Goodwill and intangible assets | | $ | 1,391 | | $ | 1,377 | | $ | 1,443 | | $ | 1,419 | | $ | 1,429 | | $ | 1,391 | | $ | 1,429 | | $ | 38 | | 3 | % | $ | 38 | | 3 | % | $ | 10 | | 1 | % |
Dividends paid | | 38 | | 37 | | 38 | | 43 | | 46 | | 143 | | 164 | | 8 | | 21 | % | 21 | | 15 | % | 3 | | 7 | % |
Common stock share repurchases | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 614 | | $ | — | | $ | — | | — | | $ | (614 | ) | | # | $ | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Owned, Managed and Administered Assets (in billions) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Owned | | $ | 31.7 | | $ | 29.6 | | $ | 32.5 | | $ | 36.0 | | $ | 36.9 | | $ | 31.7 | | $ | 36.9 | | $ | 5.2 | | 16 | % | $ | 5.2 | | 16 | % | $ | 0.9 | | 3 | % |
Managed | | | | | | | | | | | | | | | | | | | | | | | | | | | |
External clients | | 209.4 | | 196.4 | | 222.2 | | 247.7 | | 256.6 | | 209.4 | | 256.6 | | 47.2 | | 23 | % | 47.2 | | 23 | % | 8.9 | | 4 | % |
Owned | | 55.5 | | 56.9 | | 62.8 | | 67.7 | | 69.2 | | 55.5 | | 69.2 | | 13.7 | | 25 | % | 13.7 | | 25 | % | 1.5 | | 2 | % |
Total managed | | 264.9 | | 253.3 | | 285.0 | | 315.4 | | 325.8 | | 264.9 | | 325.8 | | 60.9 | | 23 | % | 60.9 | | 23 | % | 10.4 | | 3 | % |
Administered | | 75.5 | | 71.1 | | 79.8 | | 88.5 | | 95.1 | | 75.5 | | 95.1 | | 19.6 | | 26 | % | 19.6 | | 26 | % | 6.6 | | 7 | % |
Total OMA assets | | $ | 372.1 | | $ | 354.0 | | $ | 397.3 | | $ | 439.9 | | $ | 457.8 | | $ | 372.1 | | $ | 457.8 | | $ | 85.7 | | 23 | % | $ | 85.7 | | 23 | % | $ | 17.9 | | 4 | % |
# Variance of 100% or greater.
7
Ameriprise Financial, Inc.
Consolidated, Common Share and Per Share Summary
Fourth Quarter 2009
| | | | | | | | | | | | | | Prior Year Comparisons | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions, except earnings per share amounts) | | 4 Qtr 2008 | | 1 Qtr 2009 | | 2 Qtr 2009 | | 3 Qtr 2009 | | 4 Qtr 2009 | | 2008 | | 2009 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Earnings Per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings (loss) per share | | $ | (1.69 | ) | $ | 0.58 | | $ | 0.41 | | $ | 1.00 | | $ | 0.92 | | $ | (0.17 | ) | $ | 2.98 | | $ | 2.61 | | | # | $ | 3.15 | | | # | $ | (0.08 | ) | (8 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings (loss) per diluted share (1) | | $ | (1.69 | ) | $ | 0.58 | | $ | 0.41 | | $ | 1.00 | | $ | 0.90 | | $ | (0.17 | ) | $ | 2.95 | | $ | 2.59 | | | # | $ | 3.12 | | | # | $ | (0.10 | ) | (10 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common shares | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | 216.6 | | 216.5 | | 219.1 | | 255.0 | | 255.1 | | 227.7 | | 216.5 | | 38.5 | | 18 | % | (11.2 | ) | (5 | )% | 0.1 | | — | |
Repurchases | | — | | — | | — | | — | | — | | (12.7 | ) | — | | — | | — | | 12.7 | | | # | — | | — | |
Issuances | | 0.1 | | 3.1 | | 36.0 | | 0.2 | | 0.1 | | 2.3 | | 39.4 | | — | | — | | 37.1 | | | # | (0.1 | ) | (50 | )% |
Other | | (0.2 | ) | (0.5 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.8 | ) | (0.8 | ) | 0.1 | | 50 | % | — | | — | | — | | — | |
Total common outstanding | | 216.5 | | 219.1 | | 255.0 | | 255.1 | | 255.1 | | 216.5 | | 255.1 | | 38.6 | | 18 | % | 38.6 | | 18 | % | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total common outstanding | | 216.5 | | 219.1 | | 255.0 | | 255.1 | | 255.1 | | 216.5 | | 255.1 | | 38.6 | | 18 | % | 38.6 | | 18 | % | — | | — | |
Nonforfeitable restricted stock units | | 1.9 | | 4.6 | | 4.2 | | 3.7 | | 3.8 | | 1.9 | | 3.8 | | 1.9 | | | # | 1.9 | | | # | 0.1 | | 3 | % |
Total basic common shares | | 218.4 | | 223.7 | | 259.2 | | 258.8 | | 258.9 | | 218.4 | | 258.9 | | 40.5 | | 19 | % | 40.5 | | 19 | % | 0.1 | | — | |
Total potentially dilutive | | 2.1 | | 0.7 | | 1.4 | | 2.5 | | 4.8 | | 2.1 | | 4.8 | | 2.7 | | | # | 2.7 | | | # | 2.3 | | 92 | % |
Total diluted shares | | 220.5 | | 224.4 | | 260.6 | | 261.3 | | 263.7 | | 220.5 | | 263.7 | | 43.2 | | 20 | % | 43.2 | | 20 | % | 2.4 | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | 218.5 | | 222.3 | | 228.8 | | 258.7 | | 258.9 | | 222.3 | | 242.2 | | 40.4 | | 18 | % | 19.9 | | 9 | % | 0.2 | | — | |
Diluted | | 220.3 | | 223.5 | | 230.0 | | 260.7 | | 263.3 | | 224.9 | | 244.4 | | 43.0 | | 20 | % | 19.5 | | 9 | % | 2.6 | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book Value | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ameriprise Financial shareholders equity - end of period | | $ | 6,178 | | $ | 6,384 | | $ | 8,110 | | $ | 9,049 | | $ | 9,273 | | $ | 6,178 | | $ | 9,273 | | $ | 3,095 | | 50 | % | $ | 3,095 | | 50 | % | $ | 224 | | 2 | % |
Average equity - 5 point | | 7,120 | | 6,835 | | 6,941 | | 7,288 | | 7,799 | | 7,120 | | 7,799 | | 679 | | 10 | % | 679 | | 10 | % | 511 | | 7 | % |
Book Value per Share | | $ | 28.29 | | $ | 28.54 | | $ | 31.29 | | $ | 34.97 | | $ | 35.82 | | $ | 28.29 | | $ | 35.82 | | $ | 7.53 | | 27 | % | $ | 7.53 | | 27 | % | $ | 0.85 | | 2 | % |
(1) For 3rd Qtr and 4th Qtr of 2008 diluted shares used in this calculation represent basic shares due to the net loss. Using actual diluted shares would result in anti-dilution.
# Variance of 100% or greater.
8
Statistical Supplement Package
(unaudited)
Fourth Quarter 2009
Advice & Wealth Management Segment
9
Ameriprise Financial, Inc.
Advice & Wealth Management Segment
Fourth Quarter 2009
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions, except headcount and where noted, unaudited) | | 4 Qtr 2008 | | 1 Qtr 2009 | | 2 Qtr 2009 | | 3 Qtr 2009 | | 4 Qtr 2009 | | 2008 | | 2009 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | 292 | | $ | 268 | | $ | 295 | | $ | 319 | | $ | 352 | | $ | 1,339 | | $ | 1,234 | | $ | 60 | | 21 | % | $ | (105 | ) | (8 | )% | $ | 33 | | 10 | % |
Distribution fees | | 430 | | 431 | | 423 | | 432 | | 447 | | 1,912 | | 1,733 | | 17 | | 4 | % | (179 | ) | (9 | )% | 15 | | 3 | % |
Net investment income | | (123 | ) | 51 | | 82 | | 91 | | 73 | | (43 | ) | 297 | | 196 | | | # | 340 | | | # | (18 | ) | (20 | )% |
Premiums | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Other revenues | | 25 | | 17 | | 23 | | 19 | | 26 | | 80 | | 85 | | 1 | | 4 | % | 5 | | 6 | % | 7 | | 37 | % |
Total revenues | | 624 | | 767 | | 823 | | 861 | | 898 | | 3,288 | | 3,349 | | 274 | | 44 | % | 61 | | 2 | % | 37 | | 4 | % |
Banking and deposit interest expense | | 46 | | 41 | | 38 | | 29 | | 25 | | 178 | | 133 | | (21 | ) | (46 | )% | (45 | ) | (25 | )% | (4 | ) | (14 | )% |
Total net revenues | | 578 | | 726 | | 785 | | 832 | | 873 | | 3,110 | | 3,216 | | 295 | | 51 | % | 106 | | 3 | % | 41 | | 5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | 457 | | 462 | | 478 | | 504 | | 524 | | 2,121 | | 1,968 | | 67 | | 15 | % | (153 | ) | (7 | )% | 20 | | 4 | % |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Amortization of deferred acquisition costs | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
General and administrative expense | | 308 | | 325 | | 310 | | 316 | | 331 | | 1,138 | | 1,282 | | 23 | | 7 | % | 144 | | 13 | % | 15 | | 5 | % |
Total expenses | | 765 | | 787 | | 788 | | 820 | | 855 | | 3,259 | | 3,250 | | 90 | | 12 | % | (9 | ) | — | | 35 | | 4 | % |
Pretax segment income (loss) | | $ | (187 | ) | $ | (61 | ) | $ | (3 | ) | $ | 12 | | $ | 18 | | $ | (149 | ) | $ | (34 | ) | $ | 205 | | | # | $ | 115 | | 77 | % | $ | 6 | | 50 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income Statement Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax segment income (loss) margin (1) | | (32.4 | )% | (8.4 | )% | (0.4 | )% | 1.4 | % | 2.1 | % | (4.8 | )% | (1.1 | )% | 34.5 | % | | | 3.7 | % | | | 0.7 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment income on fixed maturities | | $ | 65 | | $ | 55 | | $ | 78 | | $ | 76 | | $ | 68 | | $ | 250 | | $ | 277 | | $ | 3 | | 5 | % | $ | 27 | | 11 | % | $ | (8 | ) | (11 | )% |
Realized gains (losses) | | (194 | ) | (10 | ) | (8 | ) | 5 | | (2 | ) | (333 | ) | (15 | ) | 192 | | 99 | % | 318 | | 95 | % | (7 | ) | | # |
Other (including seed money) | | 6 | | 6 | | 12 | | 10 | | 7 | | 40 | | 35 | | 1 | | 17 | % | (5 | ) | (13 | )% | (3 | ) | (30 | )% |
Total net investment income | | $ | (123 | ) | $ | 51 | | $ | 82 | | $ | 91 | | $ | 73 | | $ | (43 | ) | $ | 297 | | $ | 196 | | | # | $ | 340 | | | # | $ | (18 | ) | (20 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance Sheet Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated equity | | $ | 879 | | $ | 833 | | $ | 825 | | $ | 784 | | $ | 747 | | $ | 879 | | $ | 747 | | $ | (132 | ) | (15 | )% | $ | (132 | ) | (15 | )% | $ | (37 | ) | (5 | )% |
Return on allocated equity (1) (2) | | (10.3 | )% | (19.4 | )% | (23.8 | )% | (18.0 | )% | (2.7 | )% | (10.3 | )% | (2.7 | )% | 7.6 | % | | | 7.6 | % | | | 15.3 | % | | |
On-balance sheet deposits | | $ | 8,190 | | $ | 8,416 | | $ | 9,180 | | $ | 8,980 | | $ | 8,489 | | $ | 8,190 | | $ | 8,489 | | $ | 299 | | 4 | % | $ | 299 | | 4 | % | $ | (491 | ) | (5 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial Plans | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Branded financial plan net cash sales | | $ | 56 | | $ | 49 | | $ | 50 | | $ | 47 | | $ | 58 | | $ | 211 | | $ | 204 | | $ | 2 | | 4 | % | $ | (7 | ) | (3 | )% | $ | 11 | | 23 | % |
(1) See non-GAAP Financial Information.
(2) Calculated using the statutory tax rate of 35%.
# Variance of 100% or greater.
10
Ameriprise Financial, Inc.
Advice & Wealth Management Segment
Fourth Quarter 2009
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions, except headcount and where noted, unaudited) | | 4 Qtr 2008 | | 1 Qtr 2009 | | 2 Qtr 2009 | | 3 Qtr 2009 | | 4 Qtr 2009 | | 2008 | | 2009 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Financial Advisors | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Employee advisors | | 2,823 | | 2,816 | | 2,785 | | 2,606 | | 2,445 | | 2,823 | | 2,445 | | (378 | ) | (13 | )% | (378 | ) | (13 | )% | (161 | ) | (6 | )% |
Franchisee advisors | | 7,746 | | 7,737 | | 7,770 | | 7,725 | | 7,658 | | 7,746 | | 7,658 | | (88 | ) | (1 | )% | (88 | ) | (1 | )% | (67 | ) | (1 | )% |
Total branded financial advisors | | 10,569 | | 10,553 | | 10,555 | | 10,331 | | 10,103 | | 10,569 | | 10,103 | | (466 | ) | (4 | )% | (466 | ) | (4 | )% | (228 | ) | (2 | )% |
SAI independent advisors | | 1,917 | | 1,913 | | 1,953 | | 1,983 | | 1,933 | | 1,917 | | 1,933 | | 16 | | 1 | % | 16 | | 1 | % | (50 | ) | (3 | )% |
Total financial advisors | | 12,486 | | 12,466 | | 12,508 | | 12,314 | | 12,036 | | 12,486 | | 12,036 | | (450 | ) | (4 | )% | (450 | ) | (4 | )% | (278 | ) | (2 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenue per financial advisor (in thousands) (1) | | $ | 46 | | $ | 58 | | $ | 63 | | $ | 68 | | $ | 73 | | $ | 266 | | $ | 262 | | $ | 27 | | 59 | % | $ | (4 | ) | (2 | )% | $ | 5 | | 7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advisor Retention | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Employee | | 68.2 | % | 72.3 | % | 73.4 | % | 73.7 | % | 73.7 | % | 68.2 | % | 73.7 | % | 5.5 | % | | | 5.5 | % | | | — | | | |
Franchisee | | 92.2 | % | 92.5 | % | 91.1 | % | 91.0 | % | 91.4 | % | 92.2 | % | 91.4 | % | (0.8 | )% | | | (0.8 | )% | | | 0.4 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product Information | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Certificates and Banking - Combined | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax segment income (loss) | | $ | (192 | ) | $ | (10 | ) | $ | 20 | | $ | 37 | | $ | 27 | | $ | (333 | ) | $ | 74 | | $ | 219 | | | # | $ | 407 | | | # | $ | (10 | ) | (27 | )% |
Allocated equity | | $ | 395 | | $ | 528 | | $ | 521 | | $ | 481 | | $ | 443 | | $ | 395 | | $ | 443 | | $ | 48 | | 12 | % | $ | 48 | | 12 | % | $ | (38 | ) | (8 | )% |
Return on allocated equity (2) (3) | | (55.6 | )% | (52.1 | )% | (42.4 | )% | (20.1 | )% | 10.2 | % | (55.6 | )% | 10.2 | % | 65.8 | % | | | 65.8 | % | | | 30.3 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Wealth Management & Distribution | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income | | $ | 5 | | $ | (51 | ) | $ | (23 | ) | $ | (25 | ) | $ | (9 | ) | $ | 184 | | $ | (108 | ) | $ | (14 | ) | | # | $ | (292 | ) | | # | $ | 16 | | 64 | % |
Allocated equity | | $ | 484 | | $ | 305 | | $ | 304 | | $ | 303 | | $ | 304 | | $ | 484 | | $ | 304 | | $ | (180 | ) | (37 | )% | $ | (180 | ) | (37 | )% | $ | 1 | | — | |
Return on allocated equity (2) (3) | | 21.8 | % | 8.4 | % | (4.9 | )% | (15.5 | )% | (20.6 | )% | 21.8 | % | (20.6 | )% | (42.4 | )% | | | (42.4 | )% | | | (5.1 | )% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Client Assets (at period end) (4) | | $ | 241,363 | | $ | 231,298 | | $ | 258,393 | | $ | 286,590 | | $ | 294,027 | | $ | 241,363 | | $ | 294,027 | | $ | 52,664 | | 22 | % | $ | 52,664 | | 22 | % | $ | 7,437 | | 3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Wrap Accounts | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | $ | 84,086 | | $ | 72,781 | | $ | 68,181 | | $ | 78,960 | | $ | 89,553 | | $ | 93,851 | | $ | 72,781 | | $ | 5,467 | | 7 | % | $ | (21,070 | ) | (22 | )% | $ | 10,593 | | 13 | % |
Net flows | | (1,121 | ) | 1,302 | | 2,758 | | 2,724 | | 2,564 | | 3,749 | | 9,348 | | 3,685 | | | # | 5,599 | | | # | (160 | ) | (6 | )% |
Market appreciation (depreciation) and other | | (10,184 | ) | (5,902 | ) | 8,021 | | 7,869 | | 2,804 | | (24,819 | ) | 12,792 | | 12,988 | | | # | 37,611 | | | # | (5,065 | ) | (64 | )% |
Total wrap ending assets | | $ | 72,781 | | $ | 68,181 | | $ | 78,960 | | $ | 89,553 | | $ | 94,921 | | $ | 72,781 | | $ | 94,921 | | $ | 22,140 | | 30 | % | $ | 22,140 | | 30 | % | $ | 5,368 | | 6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
S&P 500 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Daily average | | 910 | | 811 | | 894 | | 994 | | 1,088 | | 1,221 | | 948 | | 178 | | 20 | % | (273 | ) | (22 | )% | 94 | | 9 | % |
Period end | | 903 | | 798 | | 919 | | 1,057 | | 1,115 | | 903 | | 1,115 | | 212 | | 23 | % | 212 | | 23 | % | 58 | | 5 | % |
(1) Year-to-date is sum of current and prior quarters for the year under review.
(2) See non-GAAP Financial Information.
(3) Calculated using the statutory tax rate of 35%.
(4) During the 4th Qtr of 2008, $ 24.1 B of assets were acquired due to the acquisition of HR Block.
# Variance of 100% or greater.
11
Statistical Supplement Package
(unaudited)
Fourth Quarter 2009
Asset Management Segment
12
Ameriprise Financial, Inc.
Asset Management Segment
Fourth Quarter 2009
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2008 | | 1 Qtr 2009 | | 2 Qtr 2009 | | 3 Qtr 2009 | | 4 Qtr 2009 | | 2008 | | 2009 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | 218 | | $ | 209 | | $ | 230 | | $ | 270 | | $ | 395 | | $ | 1,077 | | $ | 1,104 | | $ | 177 | | 81 | % | $ | 27 | | 3 | % | $ | 125 | | 46 | % |
Distribution fees | | 49 | | 47 | | 54 | | 55 | | 60 | | 247 | | 216 | | 11 | | 22 | % | (31 | ) | (13 | )% | 5 | | 9 | % |
Net investment income | | (7 | ) | (1 | ) | 8 | | 4 | | 9 | | (13 | ) | 20 | | 16 | | | # | 33 | | | # | 5 | | | # |
Premiums | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Other revenues | | 7 | | (6 | ) | (5 | ) | 3 | | 44 | | (15 | ) | 36 | | 37 | | | # | 51 | | | # | 41 | | | # |
Total revenues | | 267 | | 249 | | 287 | | 332 | | 508 | | 1,296 | | 1,376 | | 241 | | 90 | % | 80 | | 6 | % | 176 | | 53 | % |
Banking and deposit interest expense | | 2 | | 1 | | 2 | | 2 | | 3 | | 7 | | 8 | | 1 | | 50 | % | 1 | | 14 | % | 1 | | 50 | % |
Total net revenues | | 265 | | 248 | | 285 | | 330 | | 505 | | 1,289 | | 1,368 | | 240 | | 91 | % | 79 | | 6 | % | 175 | | 53 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | 87 | | 82 | | 85 | | 97 | | 107 | | 417 | | 371 | | 20 | | 23 | % | (46 | ) | (11 | )% | 10 | | 10 | % |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Amortization of deferred acquisition costs | | 5 | | 6 | | 6 | | 5 | | 4 | | 24 | | 21 | | (1 | ) | (20 | )% | (3 | ) | (13 | )% | (1 | ) | (20 | )% |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
General and administrative expense | | 201 | | 182 | | 214 | | 218 | | 287 | | 825 | | 901 | | 86 | | 43 | % | 76 | | 9 | % | 69 | | 32 | % |
Total expenses | | 293 | | 270 | | 305 | | 320 | | 398 | | 1,266 | | 1,293 | | 105 | | 36 | % | 27 | | 2 | % | 78 | | 24 | % |
Pretax segment income (loss) | | (28 | ) | (22 | ) | (20 | ) | 10 | | 107 | | 23 | | 75 | | 135 | | | # | 52 | | | # | 97 | | | # |
Less: Net loss attributable to noncontrolling interest | | (30 | ) | (14 | ) | (8 | ) | — | | 37 | | (54 | ) | 15 | | 67 | | | # | 69 | | | # | 37 | | — | |
Pretax income (loss) attributable to Ameriprise Financial | | $ | 2 | | $ | (8 | ) | $ | (12 | ) | $ | 10 | | $ | 70 | | $ | 77 | | $ | 60 | | $ | 68 | | | # | $ | (17 | ) | (22 | )% | $ | 60 | | | # |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income Statement Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax segment income (loss) margin (1) (2) | | 0.8 | % | (3.2 | )% | (4.2 | )% | 3.0 | % | 13.9 | % | 6.0 | % | 4.4 | % | 13.1 | % | | | (1.6 | )% | | | 10.9 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance Sheet Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated equity | | $ | 1,184 | | $ | 1,039 | | $ | 1,043 | | $ | 1,059 | | $ | 1,054 | | $ | 1,184 | | $ | 1,054 | | $ | (130 | ) | (11 | )% | $ | (130 | ) | (11 | )% | $ | (5 | ) | — | |
Return on allocated equity (1) (2) (3) | | 5.6 | % | 3.6 | % | (0.2 | )% | (0.5 | )% | 3.6 | % | 5.6 | % | 3.6 | % | (2.0 | )% | | | (2.0 | )% | | | 4.1 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Managed Assets Reconciliations | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Domestic managed assets | | $ | 127,948 | | $ | 125,201 | | $ | 134,831 | | $ | 145,790 | | $ | 149,004 | | $ | 127,948 | | $ | 149,004 | | $ | 21,056 | | 16 | % | $ | 21,056 | | 16 | % | $ | 3,214 | | 2 | % |
International managed assets | | 74,247 | | 68,340 | | 82,490 | | 93,682 | | 97,823 | | 74,247 | | 97,823 | | 23,576 | | 32 | % | 23,576 | | 32 | % | 4,141 | | 4 | % |
Less: Sub-advised eliminations | | (2,629 | ) | (2,391 | ) | (3,176 | ) | (3,494 | ) | (3,647 | ) | (2,629 | ) | (3,647 | ) | (1,018 | ) | (39 | )% | (1,018 | ) | (39 | )% | (153 | ) | (4 | )% |
Total managed assets | | $ | 199,566 | | $ | 191,150 | | $ | 214,145 | | $ | 235,978 | | $ | 243,180 | | $ | 199,566 | | $ | 243,180 | | $ | 43,614 | | 22 | % | $ | 43,614 | | 22 | % | $ | 7,202 | | 3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Managed assets - external clients | | $ | 144,024 | | $ | 134,286 | | $ | 151,351 | | $ | 168,259 | | $ | 173,977 | | $ | 144,024 | | $ | 173,977 | | $ | 29,953 | | 21 | % | $ | 29,953 | | 21 | % | $ | 5,718 | | 3 | % |
Managed assets - owned | | 55,542 | | 56,864 | | 62,794 | | 67,719 | | 69,203 | | 55,542 | | 69,203 | | 13,661 | | 25 | % | 13,661 | | 25 | % | 1,484 | | 2 | % |
Total managed assets | | $ | 199,566 | | $ | 191,150 | | $ | 214,145 | | $ | 235,978 | | $ | 243,180 | | $ | 199,566 | | $ | 243,180 | | $ | 43,614 | | 22 | % | $ | 43,614 | | 22 | % | $ | 7,202 | | 3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Managed Assets by Type | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity | | $ | 71,835 | | $ | 64,559 | | $ | 78,910 | | $ | 94,539 | | $ | 98,712 | | $ | 71,835 | | $ | 98,712 | | $ | 26,877 | | 37 | % | $ | 26,877 | | 37 | % | $ | 4,173 | | 4 | % |
Fixed income | | 92,449 | | 95,080 | | 103,773 | | 110,991 | | 113,752 | | 92,449 | | 113,752 | | 21,303 | | 23 | % | 21,303 | | 23 | % | 2,761 | | 2 | % |
Money market | | 12,596 | | 10,270 | | 10,117 | | 9,053 | | 7,986 | | 12,596 | | 7,986 | | (4,610 | ) | (37 | )% | (4,610 | ) | (37 | )% | (1,067 | ) | (12 | )% |
Alternative | | 12,012 | | 11,604 | | 11,330 | | 11,662 | | 11,590 | | 12,012 | | 11,590 | | (422 | ) | (4 | )% | (422 | ) | (4 | )% | (72 | ) | (1 | )% |
Hybrid and other | | 10,674 | | 9,637 | | 10,015 | | 9,733 | | 11,140 | | 10,674 | | 11,140 | | 466 | | 4 | % | 466 | | 4 | % | 1,407 | | 14 | % |
Total managed assets by type | | $ | 199,566 | | $ | 191,150 | | $ | 214,145 | | $ | 235,978 | | $ | 243,180 | | $ | 199,566 | | $ | 243,180 | | $ | 43,614 | | 22 | % | $ | 43,614 | | 22 | % | $ | 7,202 | | 3 | % |
(1) See non-GAAP Financial Information.
(2) Calculation excludes net income (loss) attributable to noncontrolling interest.
(3) Calculated using the statutory tax rate of 35%.
# Variance of 100% or greater.
13
Ameriprise Financial, Inc.
Asset Management Segment
Fourth Quarter 2009
| | 4 Qtr 2008 | | 1 Qtr 2009 | | 2 Qtr 2009 | | 3 Qtr 2009 | | 4 Qtr 2009 | |
Mutual Fund Performance | | | | | | | | | | | |
Domestic | | | | | | | | | | | |
Equal Weighted Mutual Fund Rankings in top 2 Lipper Quartiles | | | | | | | | | | | |
Equity - 12 month | | 33 | % | 35 | % | 37 | % | 49 | % | 51 | % |
Fixed income - 12 month | | 70 | % | 77 | % | 74 | % | 58 | % | 65 | % |
Equity - 3 year | | 50 | % | 44 | % | 42 | % | 41 | % | 42 | % |
Fixed income - 3 year | | 75 | % | 71 | % | 79 | % | 72 | % | 72 | % |
Equity - 5 year | | 53 | % | 51 | % | 59 | % | 67 | % | 63 | % |
Fixed income - 5 year | | 66 | % | 72 | % | 64 | % | 58 | % | 58 | % |
| | | | | | | | | | | |
Asset Weighted Mutual Fund Rankings in top 2 Lipper Quartiles | | | | | | | | | | | |
Equity - 12 month | | 26 | % | 31 | % | 39 | % | 52 | % | 72 | % |
Fixed income - 12 month | | 39 | % | 62 | % | 42 | % | 61 | % | 80 | % |
Equity - 3 year | | 40 | % | 39 | % | 40 | % | 51 | % | 50 | % |
Fixed income - 3 year | | 40 | % | 40 | % | 47 | % | 65 | % | 63 | % |
Equity - 5 year | | 70 | % | 63 | % | 67 | % | 74 | % | 69 | % |
Fixed income - 5 year | | 37 | % | 63 | % | 39 | % | 61 | % | 58 | % |
| | | | | | | | | | | |
International | | | | | | | | | | | |
Equal Weighted Mutual Fund Rankings in top 2 S&P Quartiles | | | | | | | | | | | |
Equity - 12 month | | 83 | % | 93 | % | 69 | % | 64 | % | 38 | % |
Fixed income - 12 month | | 45 | % | 64 | % | 73 | % | 82 | % | 60 | % |
Equity - 3 year | | 90 | % | 93 | % | 93 | % | 89 | % | 90 | % |
Fixed income - 3 year | | 64 | % | 73 | % | 73 | % | 64 | % | 80 | % |
Equity - 5 year | | 89 | % | 93 | % | 89 | % | 85 | % | 89 | % |
Fixed income - 5 year | | 50 | % | 70 | % | 70 | % | 70 | % | 78 | % |
Equal Weighted Rankings in Top 2 Quartiles: Counts the number of Class A funds with above median ranking divided by the total number of Class A funds. Asset size is not a factor.
Asset Weighted Rankings in Top 2 Quartiles: Sums the assets of the Class A funds with above median ranking divided by the total Class A assets. Funds with more assets will receive a greater share of the total percentage above or below median.
Aggregated data shows only actively-managed mutual funds by affiliated investment managers.
Aggregated data do not include mutual funds sub-advised by advisors not affiliated with Ameriprise Financial, Inc., RiverSource S&P 500 Index Fund, RiverSource Cash Management Fund and RiverSource Tax Free Money Market Fund.
Aggregated equity rankings include RiverSource Portfolio Builder Series and other balanced and asset allocation funds that invest in both equities and fixed income.
RiverSource Portfolio Builder Series funds are funds of mutual funds that may invest in third-party sub-advised funds.
14
Ameriprise Financial, Inc.
Asset Management Segment - Domestic
Fourth Quarter 2009
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2008 | | 1 Qtr 2009 | | 2 Qtr 2009 | | 3 Qtr 2009 | | 4 Qtr 2009 | | 2008 | | 2009 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Domestic Managed Assets Rollforward (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retail Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | $ | 70,214 | | $ | 63,970 | | $ | 59,832 | | $ | 66,010 | | $ | 74,592 | | $ | 86,864 | | $ | 63,970 | | $ | 4,378 | | 6 | % | $ | (22,894 | ) | (26 | )% | $ | 8,582 | | 13 | % |
Net flows | | (2,179 | ) | (1,258 | ) | (861 | ) | 299 | | (565 | ) | (5,399 | ) | (2,385 | ) | 1,614 | | 74 | % | 3,014 | | 56 | % | (864 | ) | | # |
Market appreciation (depreciation) and other | | (4,065 | ) | (2,880 | ) | 7,039 | | 8,283 | | 2,833 | | (17,495 | ) | 15,275 | | 6,898 | | | # | 32,770 | | | # | (5,450 | ) | (66 | )% |
Total ending assets | | 63,970 | | 59,832 | | 66,010 | | 74,592 | | 76,860 | | 63,970 | | 76,860 | | 12,890 | | 20 | % | 12,890 | | 20 | % | 2,268 | | 3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional (2) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | 43,129 | | 46,293 | | 47,954 | | 51,905 | | 53,886 | | 53,235 | | 46,293 | | 10,757 | | 25 | % | (6,942 | ) | (13 | )% | 1,981 | | 4 | % |
Net flows | | 1,320 | | 2,002 | | 1,133 | | (443 | ) | 1,351 | | (4,737 | ) | 4,043 | | 31 | | 2 | % | 8,780 | | | # | 1,794 | | | # |
Market appreciation (depreciation) and other | | 1,844 | | (341 | ) | 2,818 | | 2,424 | | (276 | ) | (2,205 | ) | 4,625 | | (2,120 | ) | | # | 6,830 | | | # | (2,700 | ) | | # |
Total ending assets | | 46,293 | | 47,954 | | 51,905 | | 53,886 | | 54,961 | | 46,293 | | 54,961 | | 8,668 | | 19 | % | 8,668 | | 19 | % | 1,075 | | 2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Alternative | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | 7,065 | | 9,378 | | 9,048 | | 9,131 | | 9,666 | | 8,085 | | 9,378 | | 2,601 | | 37 | % | 1,293 | | 16 | % | 535 | | 6 | % |
Net flows | | (523 | ) | (623 | ) | 48 | | 322 | | 66 | | (1,234 | ) | (187 | ) | 589 | | | # | 1,047 | | 85 | % | (256 | ) | (80 | )% |
Market appreciation (depreciation) and other | | 2,836 | | 293 | | 35 | | 213 | | 59 | | 2,527 | | 600 | | (2,777 | ) | (98 | )% | (1,927 | ) | (76 | )% | (154 | ) | (72 | )% |
Total ending assets | | 9,378 | | 9,048 | | 9,131 | | 9,666 | | 9,791 | | 9,378 | | 9,791 | | 413 | | 4 | % | 413 | | 4 | % | 125 | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trust | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | 8,547 | | 8,482 | | 8,519 | | 7,945 | | 7,786 | | 8,804 | | 8,482 | | (761 | ) | (9 | )% | (322 | ) | (4 | )% | (159 | ) | (2 | )% |
Net flows | | 120 | | 54 | | (745 | ) | (330 | ) | (331 | ) | (53 | ) | (1,352 | ) | (451 | ) | | # | (1,299 | ) | | # | (1 | ) | — | |
Market appreciation (depreciation) and other | | (185 | ) | (17 | ) | 171 | | 171 | | 80 | | (269 | ) | 405 | | 265 | | | # | 674 | | | # | (91 | ) | (53 | )% |
Total ending assets | | 8,482 | | 8,519 | | 7,945 | | 7,786 | | 7,535 | | 8,482 | | 7,535 | | (947 | ) | (11 | )% | (947 | ) | (11 | )% | (251 | ) | (3 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other and Eliminations | | (175 | ) | (152 | ) | (160 | ) | (140 | ) | (143 | ) | (175 | ) | (143 | ) | 32 | | 18 | % | 32 | | 18 | % | (3 | ) | (2 | )% |
Total Domestic managed assets | | $ | 127,948 | | $ | 125,201 | | $ | 134,831 | | $ | 145,790 | | $ | 149,004 | | $ | 127,948 | | $ | 149,004 | | $ | 21,056 | | 16 | % | $ | 21,056 | | 16 | % | $ | 3,214 | | 2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Domestic net flows | | $ | (1,262 | ) | $ | 175 | | $ | (425 | ) | $ | (152 | ) | $ | 521 | | $ | (11,423 | ) | $ | 119 | | $ | 1,783 | | | # | $ | 11,542 | | | # | $ | 673 | | | # |
(1) Included in Market appreciation (depreciation) and other, for the 4th Qtr of 2008, were $ 12.8 B of assets due to the acquisition of J. & W. Seligman & Co. Balances included $6.7 B of Retail Funds, $3.2 B of Institutional and $2.9 B of Alternative.
(2) Included in Market appreciation (depreciation) and other are share repurchase, debt repurchase, equity issuance, debt issuance and acquisitions.
# Variance of 100% or greater.
15
Ameriprise Financial, Inc.
Asset Management Segment - International
Fourth Quarter 2009
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2008 | | 1 Qtr 2009 | | 2 Qtr 2009 | | 3 Qtr 2009 | | 4 Qtr 2009 | | 2008 | | 2009 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
International Managed Assets Rollforward | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retail Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | $ | 21,758 | | $ | 16,361 | | $ | 15,651 | | $ | 22,107 | | $ | 26,565 | | $ | 30,822 | | $ | 16,361 | | $ | 4,807 | | 22 | % | $ | (14,461 | ) | (47 | )% | $ | 4,458 | | 20 | % |
Net flows | | (714 | ) | 642 | | 1,224 | | 1,447 | | 1,483 | | (1,927 | ) | 4,796 | �� | 2,197 | | | # | 6,723 | | | # | 36 | | 2 | % |
Market appreciation (depreciation) | | (1,101 | ) | (1,054 | ) | 545 | | 3,673 | | 707 | | (6,418 | ) | 3,871 | | 1,808 | | | # | 10,289 | | | # | (2,966 | ) | (81 | )% |
Foreign currency translation (1) | | (3,605 | ) | (330 | ) | 2,517 | | (745 | ) | 297 | | (6,349 | ) | 1,739 | | 3,902 | | | # | 8,088 | | | # | 1,042 | | | # |
Other (2) | | 23 | | 32 | | 2,170 | | 83 | | 38 | | 233 | | 2,323 | | 15 | | 65 | % | 2,090 | | | # | (45 | ) | (54 | )% |
Total ending assets | | 16,361 | | 15,651 | | 22,107 | | 26,565 | | 29,090 | | 16,361 | | 29,090 | | 12,729 | | 78 | % | 12,729 | | 78 | % | 2,525 | | 10 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | 74,856 | | 55,342 | | 50,179 | | 58,347 | | 65,120 | | 100,057 | | 55,342 | | (9,736 | ) | (13 | )% | (44,715 | ) | (45 | )% | 6,773 | | 12 | % |
Net flows | | (7,267 | ) | (1,277 | ) | (675 | ) | 943 | | (384 | ) | (13,245 | ) | (1,393 | ) | 6,883 | | 95 | % | 11,852 | | 89 | % | (1,327 | ) | | # |
Market appreciation (depreciation) | | (1,027 | ) | (3,148 | ) | 636 | | 7,224 | | 930 | | (13,552 | ) | 5,642 | | 1,957 | | | # | 19,194 | | | # | (6,294 | ) | (87 | )% |
Foreign currency translation (1) | | (12,639 | ) | (1,110 | ) | 7,595 | | (1,873 | ) | 784 | | (21,738 | ) | 5,396 | | 13,423 | | | # | 27,134 | | | # | 2,657 | | | # |
Other | | 1,419 | | 372 | | 612 | | 479 | | 484 | | 3,820 | | 1,947 | | (935 | ) | (66 | )% | (1,873 | ) | (49 | )% | 5 | | 1 | % |
Total ending assets | | 55,342 | | 50,179 | | 58,347 | | 65,120 | | 66,934 | | 55,342 | | 66,934 | | 11,592 | | 21 | % | 11,592 | | 21 | % | 1,814 | | 3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Alternative | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | 1,268 | | 2,544 | | 2,510 | | 2,036 | | 1,997 | | 3,479 | | 2,544 | | 729 | | 57 | % | (935 | ) | (27 | )% | (39 | ) | (2 | )% |
Net flows | | 1,345 | | 313 | | (79 | ) | 86 | | (235 | ) | (649 | ) | 85 | | (1,580 | ) | | # | 734 | | | # | (321 | ) | | # |
Market appreciation (depreciation) | | 138 | | (295 | ) | (700 | ) | (66 | ) | 4 | | 181 | | (1,057 | ) | (134 | ) | (97 | )% | (1,238 | ) | | # | 70 | | | # |
Foreign currency translation (1) | | (207 | ) | (52 | ) | 305 | | (59 | ) | 29 | | (489 | ) | 223 | | 236 | | | # | 712 | | | # | 88 | | | # |
Other | | — | | — | | — | | — | | 4 | | 22 | | 4 | | 4 | | — | | (18 | ) | (82 | )% | 4 | | — | |
Total ending assets | | 2,544 | | 2,510 | | 2,036 | | 1,997 | | 1,799 | | 2,544 | | 1,799 | | (745 | ) | (29 | )% | (745 | ) | (29 | )% | (198 | ) | (10 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total International managed assets | | $ | 74,247 | | $ | 68,340 | | $ | 82,490 | | $ | 93,682 | | $ | 97,823 | | $ | 74,247 | | $ | 97,823 | | $ | 23,576 | | 32 | % | $ | 23,576 | | 32 | % | $ | 4,141 | | 4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total International net flows | | $ | (6,636 | ) | $ | (322 | ) | $ | 470 | | $ | 2,476 | | $ | 864 | | $ | (15,821 | ) | $ | 3,488 | | $ | 7,500 | | | # | $ | 19,309 | | | # | $ | (1,612 | ) | (65 | )% |
(1) Amounts represent British Pound to US dollar conversion.
(2) Included in Retail funds other, for the 2nd Qtr of 2009, were $ 2.1 B of assets due to the acquisition of Standard Chartered Bank’s World Express Funds investment business.
# Variance of 100% or greater.
16
Statistical Supplement Package
(unaudited)
Fourth Quarter 2009
Annuities Segment
17
Ameriprise Financial, Inc.
Annuities Segment
Fourth Quarter 2009
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2008 | | 1 Qtr 2009 | | 2 Qtr 2009 | | 3 Qtr 2009 | | 4 Qtr 2009 | | 2008 | | 2009 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | 98 | | $ | 90 | | $ | 104 | | $ | 118 | | $ | 126 | | $ | 478 | | $ | 438 | | $ | 28 | | 29 | % | $ | (40 | ) | (8 | )% | $ | 8 | | 7 | % |
Distribution fees | | 62 | | 57 | | 58 | | 64 | | 68 | | 275 | | 247 | | 6 | | 10 | % | (28 | ) | (10 | )% | 4 | | 6 | % |
Net investment income | | 92 | | 289 | | 339 | | 343 | | 352 | | 652 | | 1,323 | | 260 | | | # | 671 | | | # | 9 | | 3 | % |
Premiums | | 25 | | 24 | | 23 | | 25 | | 32 | | 85 | | 104 | | 7 | | 28 | % | 19 | | 22 | % | 7 | | 28 | % |
Other revenues | | 33 | | 32 | | 38 | | 41 | | 42 | | 128 | | 153 | | 9 | | 27 | % | 25 | | 20 | % | 1 | | 2 | % |
Total revenues | | 310 | | 492 | | 562 | | 591 | | 620 | | 1,618 | | 2,265 | | 310 | | | # | 647 | | 40 | % | 29 | | 5 | % |
Banking and deposit interest expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Total net revenues | | 310 | | 492 | | 562 | | 591 | | 620 | | 1,618 | | 2,265 | | 310 | | | # | 647 | | 40 | % | 29 | | 5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | 65 | | 56 | | 49 | | 49 | | 57 | | 207 | | 211 | | (8 | ) | (12 | )% | 4 | | 2 | % | 8 | | 16 | % |
Interest credited to fixed accounts | | 167 | | 169 | | 201 | | 196 | | 193 | | 646 | | 759 | | 26 | | 16 | % | 113 | | 17 | % | (3 | ) | (2 | )% |
Benefits, claims, losses and settlement expenses | | 113 | | (129 | ) | 351 | | 93 | | 103 | | 269 | | 418 | | (10 | ) | (9 | )% | 149 | | 55 | % | 10 | | 11 | % |
Amortization of deferred acquisition costs | | 295 | | 219 | | (182 | ) | (64 | ) | 64 | | 576 | | 37 | | (231 | ) | (78 | )% | (539 | ) | (94 | )% | 128 | | | # |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
General and administrative expense | | 42 | | 48 | | 49 | | 49 | | 46 | | 207 | | 192 | | 4 | | 10 | % | (15 | ) | (7 | )% | (3 | ) | (6 | )% |
Total expenses | | 682 | | 363 | | 468 | | 323 | | 463 | | 1,905 | | 1,617 | | (219 | ) | (32 | )% | (288 | ) | (15 | )% | 140 | | 43 | % |
Pretax segment income (loss) | | $ | (372 | ) | $ | 129 | | $ | 94 | | $ | 268 | | $ | 157 | | $ | (287 | ) | $ | 648 | | $ | 529 | | | # | $ | 935 | | | # | $ | (111 | ) | (41 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income Statement Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax segment income (loss) margin (1) | | (120.0 | )% | 26.2 | % | 16.7 | % | 45.3 | % | 25.3 | % | (17.7 | )% | 28.6 | % | 145.3 | % | | | 46.3 | % | | | (20.0 | )% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment income on fixed maturities | | $ | 243 | | $ | 259 | | $ | 314 | | $ | 336 | | $ | 337 | | $ | 985 | | $ | 1,246 | | $ | 94 | | 39 | % | $ | 261 | | 26 | % | $ | 1 | | — | |
Realized gains (losses) | | (169 | ) | 20 | | 8 | | — | | 16 | | (350 | ) | 44 | | 185 | | | # | 394 | | | # | 16 | | — | |
Other (including seed money) | | 18 | | 10 | | 17 | | 7 | | (1 | ) | 17 | | 33 | | (19 | ) | | # | 16 | | 94 | % | (8 | ) | | # |
Total net investment income | | $ | 92 | | $ | 289 | | $ | 339 | | $ | 343 | | $ | 352 | | $ | 652 | | $ | 1,323 | | $ | 260 | | | # | $ | 671 | | | # | $ | 9 | | 3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance Sheet Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated equity | | $ | 2,754 | | $ | 2,774 | | $ | 2,093 | | $ | 2,322 | | $ | 2,459 | | $ | 2,754 | | $ | 2,459 | | $ | (295 | ) | (11 | )% | $ | (295 | ) | (11 | )% | $ | 137 | | 6 | % |
Return on allocated equity (1) (4) | | (8.4 | )% | (5.5 | )% | (5.0 | )% | 3.2 | % | 17.0 | % | (8.4 | )% | 17.0 | % | 25.4 | % | | | 25.4 | % | | | 13.8 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net variable annuity living benefits market impact (2) (3) | | $ | 82 | | $ | 267 | | $ | (360 | ) | $ | (66 | ) | $ | (3 | ) | $ | 113 | | $ | (162 | ) | $ | (85 | ) | | # | $ | (275 | ) | | # | $ | 63 | | 95 | % |
Total annuity net flows | | $ | 951 | | $ | 1,779 | | $ | 1,129 | | $ | 527 | | $ | 255 | | $ | 2,067 | | $ | 3,690 | | $ | (696 | ) | (73 | )% | $ | 1,623 | | 79 | % | $ | (272 | ) | (52 | )% |
(1) See non-GAAP Financial Information.
(2) Guaranteed Minimum Withdrawal Benefit (GMWB) and Guaranteed Minimum Accumulation Benefit (GMAB) only.
(3) Q3 2008 includes loss on derivatives related to Lehman Brothers bankruptcy.
(4) Calculated using the statutory tax rate of 35%.
# Variance of 100% or greater.
18
Ameriprise Financial, Inc.
Annuities Segment
Fourth Quarter 2009
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2008 | | 1 Qtr 2009 | | 2 Qtr 2009 | | 3 Qtr 2009 | | 4 Qtr 2009 | | 2008 | | 2009 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Product Information | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Variable Annuities | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax segment income (loss) | | $ | (257 | ) | $ | 83 | | $ | 21 | | $ | 189 | | $ | 86 | | $ | (98 | ) | $ | 379 | | $ | 343 | | | # | $ | 477 | | | # | $ | (103 | ) | (54 | )% |
Allocated equity | | $ | 1,315 | | $ | 1,099 | | $ | 801 | | $ | 988 | | $ | 1,005 | | $ | 1,315 | | $ | 1,005 | | $ | (310 | ) | (24 | )% | $ | (310 | ) | (24 | )% | $ | 17 | | 2 | % |
Return on allocated equity (1) | | (6.1 | )% | (2.1 | )% | (4.4 | )% | 2.2 | % | 23.7 | % | (6.1 | )% | 23.7 | % | 29.8 | % | | | 29.8 | % | | | 21.5 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Annuities (2) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax segment income (loss) | | $ | (115 | ) | $ | 46 | | $ | 73 | | $ | 79 | | $ | 71 | | $ | (189 | ) | $ | 269 | | $ | 186 | | | # | $ | 458 | | | # | $ | (8 | ) | (10 | )% |
Allocated equity | | $ | 1,439 | | $ | 1,675 | | $ | 1,292 | | $ | 1,334 | | $ | 1,454 | | $ | 1,439 | | $ | 1,454 | | $ | 15 | | 1 | % | $ | 15 | | 1 | % | $ | 120 | | 9 | % |
Return on allocated equity (1) | | (10.5 | )% | (8.4 | )% | (5.6 | )% | 4.0 | % | 12.2 | % | (10.5 | )% | 12.2 | % | 22.7 | % | | | 22.7 | % | | | 8.2 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Variable Annuities Rollforward | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 50,300 | | $ | 43,280 | | $ | 41,468 | | $ | 47,104 | | $ | 52,995 | | $ | 57,182 | | $ | 43,280 | | $ | 2,695 | | 5 | % | $ | (13,902 | ) | (24 | )% | $ | 5,891 | | 13 | % |
Deposits | | 1,567 | | 1,322 | | 1,411 | | 1,435 | | 1,378 | | 7,502 | | 5,546 | | (189 | ) | (12 | )% | (1,956 | ) | (26 | )% | (57 | ) | (4 | )% |
Withdrawals and terminations | | (1,058 | ) | (994 | ) | (844 | ) | (909 | ) | (980 | ) | (4,763 | ) | (3,727 | ) | 78 | | 7 | % | 1,036 | | 22 | % | (71 | ) | (8 | )% |
Net flows | | 509 | | 328 | | 567 | | 526 | | 398 | | 2,739 | | 1,819 | | (111 | ) | (22 | )% | (920 | ) | (34 | )% | (128 | ) | (24 | )% |
Investment performance and interest credited | | (7,528 | ) | (2,137 | ) | 5,060 | | 5,365 | | 1,713 | | (16,642 | ) | 10,001 | | 9,241 | | | # | 26,643 | | | # | (3,652 | ) | (68 | )% |
Other | | (1 | ) | (3 | ) | 9 | | — | | — | | 1 | | 6 | | 1 | | | # | 5 | | | # | — | | — | |
Total ending balance - contract accumulation values | | $ | 43,280 | | $ | 41,468 | | $ | 47,104 | | $ | 52,995 | | $ | 55,106 | | $ | 43,280 | | $ | 55,106 | | $ | 11,826 | | 27 | % | $ | 11,826 | | 27 | % | $ | 2,111 | | 4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Variable annuities fixed sub-accounts | | $ | 5,623 | | $ | 5,919 | | $ | 5,987 | | $ | 6,036 | | $ | 6,124 | | $ | 5,623 | | $ | 6,124 | | $ | 501 | | 9 | % | $ | 501 | | 9 | % | $ | 88 | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Annuities Rollforward | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 11,682 | | $ | 12,228 | | $ | 13,805 | | $ | 14,464 | | $ | 14,615 | | $ | 12,463 | | $ | 12,228 | | $ | 2,933 | | 25 | % | $ | (235 | ) | (2 | )% | $ | 151 | | 1 | % |
Deposits | | 999 | | 2,097 | | 974 | | 343 | | 167 | | 1,664 | | 3,581 | | (832 | ) | (83 | )% | 1,917 | | | # | (176 | ) | (51 | )% |
Withdrawals and terminations | | (557 | ) | (646 | ) | (412 | ) | (342 | ) | (310 | ) | (2,336 | ) | (1,710 | ) | 247 | | 44 | % | 626 | | 27 | % | 32 | | 9 | % |
Net flows | | 442 | | 1,451 | | 562 | | 1 | | (143 | ) | (672 | ) | 1,871 | | (585 | ) | | # | 2,543 | | | # | (144 | ) | | # |
Policyholder interest credited | | 107 | | 126 | | 145 | | 151 | | 151 | | 404 | | 573 | | 44 | | 41 | % | 169 | | 42 | % | — | | — | |
Other | | (3 | ) | — | | (48 | ) | (1 | ) | — | | 33 | | (49 | ) | 3 | | | # | (82 | ) | | # | 1 | | | # |
Total ending balance - contract accumulation values | | $ | 12,228 | | $ | 13,805 | | $ | 14,464 | | $ | 14,615 | | $ | 14,623 | | $ | 12,228 | | $ | 14,623 | | $ | 2,395 | | 20 | % | $ | 2,395 | | 20 | % | $ | 8 | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capitalized Interest | | $ | 5 | | $ | 10 | | $ | 10 | | $ | 9 | | $ | 8 | | $ | 11 | | $ | 37 | | $ | 3 | | 60 | % | $ | 26 | | | # | $ | (1 | ) | (11 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Payout Annuities Reserve Balance | | $ | 2,105 | | $ | 2,082 | | $ | 2,115 | | $ | 2,104 | | $ | 2,102 | | $ | 2,105 | | $ | 2,102 | | $ | (3 | ) | — | | $ | (3 | ) | — | | $ | (2 | ) | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tax Equivalent Spread - Fixed Annuities (3) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross rate of return on invested assets (4) | | 5.2 | % | 5.5 | % | 6.3 | % | 6.4 | % | 6.1 | % | 5.3 | % | 6.1 | % | 0.9 | % | | | 0.8 | % | | | (0.3 | )% | | |
Crediting rate excluding capitalized interest | | (3.8 | )% | (3.8 | )% | (4.0 | )% | (4.0 | )% | (3.9 | )% | (3.7 | )% | (3.9 | )% | (0.1 | )% | | | (0.2 | )% | | | 0.1 | % | | |
Tax equivalent margin spread | | 1.4 | % | 1.7 | % | 2.3 | % | 2.4 | % | 2.2 | % | 1.6 | % | 2.2 | % | 0.8 | % | | | 0.6 | % | | | (0.2 | )% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Variable Annuities DAC | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 2,176 | | $ | 2,063 | | $ | 1,894 | | $ | 2,060 | | $ | 2,116 | | $ | 2,086 | | $ | 2,063 | | $ | (60 | ) | (3 | )% | $ | (23 | ) | (1 | )% | $ | 56 | | 3 | % |
Capitalization | | 60 | | 61 | | 68 | | 68 | | 64 | | 343 | | 261 | | 4 | | 7 | % | (82 | ) | (24 | )% | (4 | ) | (6 | )% |
Amortization per income statement | | (291 | ) | (207 | ) | 200 | | 70 | | (48 | ) | (524 | ) | 15 | | 243 | | 84 | % | 539 | | | # | (118 | ) | | # |
Cumulative effect of accounting change (5) | | — | | — | | — | | — | | — | | 36 | | — | | — | | — | | (36 | ) | | # | — | | — | |
Other (FAS 115) | | 118 | | (23 | ) | (102 | ) | (82 | ) | — | | 122 | | (207 | ) | (118 | ) | | # | (329 | ) | | # | 82 | | | # |
Total ending balance | | $ | 2,063 | | $ | 1,894 | | $ | 2,060 | | $ | 2,116 | | $ | 2,132 | | $ | 2,063 | | $ | 2,132 | | $ | 69 | | 3 | % | $ | 69 | | 3 | % | $ | 16 | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Fixed Annuities DAC | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 217 | | $ | 316 | | $ | 366 | | $ | 389 | | $ | 304 | | $ | 250 | | $ | 316 | | $ | 87 | | 40 | % | $ | 66 | | 26 | % | $ | (85 | ) | (22 | )% |
Capitalization | | 50 | | 99 | | 46 | | 19 | | 8 | | 76 | | 172 | | (42 | ) | (84 | )% | 96 | | | # | (11 | ) | (58 | )% |
Amortization per income statement | | (4 | ) | (12 | ) | (18 | ) | (6 | ) | (16 | ) | (52 | ) | (52 | ) | (12 | ) | | # | — | | — | | (10 | ) | | # |
Other (FAS 115) | | 53 | | (37 | ) | (5 | ) | (98 | ) | 5 | | 42 | | (135 | ) | (48 | ) | (91 | )% | (177 | ) | | # | 103 | | | # |
Total ending balance | | $ | 316 | | $ | 366 | | $ | 389 | | $ | 304 | | $ | 301 | | $ | 316 | | $ | 301 | | $ | (15 | ) | (5 | )% | $ | (15 | ) | (5 | )% | $ | (3 | ) | (1 | )% |
(1) Calculated using the statutory tax rate of 35%.
(2) Includes payout annuities.
(3) Attributable to interest sensitive products only, which have been approximately 98% of the total ending fixed annuities accumulation values in the periods reported. Through October of 2008, the asset earnings rate is a calculated theoretical yield obtained from the assignment of investment income using the investment year method of allocation. After October of 2008, the asset earnings rate is a calculated yield based on specifically assigned assets.
(4) The Gross rate of return on invested assets for the 4th quarter 2009 is affected by a significant purchase of a forward settle FNMA TBA position that is recorded on a trade basis. Without this position, the Gross rate of return on invested assets for the 4th quarter 2009 would be approximately 6.3%.
(5) Reflects adoption of FAS 157 in 1st Qtr 2008.
# Variance of 100% or greater.
19
Statistical Supplement Package
(unaudited)
Fourth Quarter 2009
Protection Segment
20
Ameriprise Financial, Inc.
Protection Segment
Fourth Quarter 2009
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2008 | | 1 Qtr 2009 | | 2 Qtr 2009 | | 3 Qtr 2009 | | 4 Qtr 2009 | | 2008 | | 2009 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | 11 | | $ | 10 | | $ | 11 | | $ | 13 | | $ | 13 | | $ | 56 | | $ | 47 | | $ | 2 | | 18 | % | $ | (9 | ) | (16 | )% | $ | — | | — | |
Distribution fees | | 28 | | 24 | | 24 | | 24 | | 25 | | 106 | | 97 | | (3 | ) | (11 | )% | (9 | ) | (8 | )% | 1 | | 4 | % |
Net investment income | | 42 | | 100 | | 97 | | 112 | | 113 | | 252 | | 422 | | 71 | | | # | 170 | | 67 | % | 1 | | 1 | % |
Premiums | | 254 | | 247 | | 254 | | 257 | | 262 | | 994 | | 1,020 | | 8 | | 3 | % | 26 | | 3 | % | 5 | | 2 | % |
Other revenues | | 115 | | 115 | | 111 | | 44 | | 116 | | 547 | | 386 | | 1 | | 1 | % | (161 | ) | (29 | )% | 72 | | | # |
Total revenues | | 450 | | 496 | | 497 | | 450 | | 529 | | 1,955 | | 1,972 | | 79 | | 18 | % | 17 | | 1 | % | 79 | | 18 | % |
Banking and deposit interest expense | | — | | — | | — | | — | | 1 | | 1 | | 1 | | 1 | | — | | — | | — | | 1 | | — | |
Total net revenues | | 450 | | 496 | | 497 | | 450 | | 528 | | 1,954 | | 1,971 | | 78 | | 17 | % | 17 | | 1 | % | 78 | | 17 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | 3 | | 5 | | 6 | | 4 | | 7 | | 18 | | 22 | | 4 | | | # | 4 | | 22 | % | 3 | | 75 | % |
Interest credited to fixed accounts | | 36 | | 36 | | 36 | | 36 | | 36 | | 144 | | 144 | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | 218 | | 229 | | 236 | | 213 | | 246 | | 856 | | 924 | | 28 | | 13 | % | 68 | | 8 | % | 33 | | 15 | % |
Amortization of deferred acquisition costs | | 95 | | 61 | | 51 | | (5 | ) | 52 | | 333 | | 159 | | (43 | ) | (45 | )% | (174 | ) | (52 | )% | 57 | | | # |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
General and administrative expense | | 65 | | 53 | | 58 | | 57 | | 58 | | 251 | | 226 | | (7 | ) | (11 | )% | (25 | ) | (10 | )% | 1 | | 2 | % |
Total expenses | | 417 | | 384 | | 387 | | 305 | | 399 | | 1,602 | | 1,475 | | (18 | ) | (4 | )% | (127 | ) | (8 | )% | 94 | | 31 | % |
Pretax segment income | | $ | 33 | | $ | 112 | | $ | 110 | | $ | 145 | | $ | 129 | | $ | 352 | | $ | 496 | | $ | 96 | | | # | $ | 144 | | 41 | % | $ | (16 | ) | (11 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax Operating Earnings (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax segment income | | $ | 33 | | $ | 112 | | $ | 110 | | $ | 145 | | $ | 129 | | $ | 352 | | $ | 496 | | $ | 96 | | | # | $ | 144 | | 41 | % | $ | (16 | ) | (11 | )% |
Realized (gains) losses | | 44 | | (8 | ) | 1 | | (7 | ) | (13 | ) | 92 | | (27 | ) | (57 | ) | | # | (119 | ) | | # | (6 | ) | (86 | )% |
Total pretax operating earnings | | $ | 77 | | $ | 104 | | $ | 111 | | $ | 138 | | $ | 116 | | $ | 444 | | $ | 469 | | $ | 39 | | 51 | % | $ | 25 | | 6 | % | $ | (22 | ) | (16 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income Statement Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax segment income margin (1) | | 7.3 | % | 22.6 | % | 22.1 | % | 32.2 | % | 24.4 | % | 18.0 | % | 25.2 | % | 17.1 | % | | | 7.2 | % | | | (7.8 | )% | | |
Pretax operating earnings margin (1) | | 17.1 | % | 21.0 | % | 22.3 | % | 30.7 | % | 22.0 | % | 22.7 | % | 23.8 | % | 4.9 | % | | | 1.1 | % | | | (8.7 | )% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment income on fixed maturities | | $ | 75 | | $ | 81 | | $ | 85 | | $ | 94 | | $ | 93 | | $ | 307 | | $ | 353 | | $ | 18 | | 24 | % | $ | 46 | | 15 | % | $ | (1 | ) | (1 | )% |
Realized gains (losses) | | (44 | ) | 8 | | (1 | ) | 7 | | 13 | | (92 | ) | 27 | | 57 | | | # | 119 | | | # | 6 | | 86 | % |
Other (including seed money) | | 11 | | 11 | | 13 | | 11 | | 7 | | 37 | | 42 | | (4 | ) | (36 | )% | 5 | | 14 | % | (4 | ) | (36 | )% |
Total net investment income | | $ | 42 | | $ | 100 | | $ | 97 | | $ | 112 | | $ | 113 | | $ | 252 | | $ | 422 | | $ | 71 | | | # | $ | 170 | | 67 | % | $ | 1 | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance Sheet Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated equity | | $ | 2,339 | | $ | 2,388 | | $ | 2,450 | | $ | 2,463 | | $ | 2,540 | | $ | 2,339 | | $ | 2,540 | | $ | 201 | | 9 | % | $ | 201 | | 9 | % | $ | 77 | | 3 | % |
Return on allocated equity (1) (2) | | 9.7 | % | 9.9 | % | 9.7 | % | 10.7 | % | 13.2 | % | 9.7 | % | 13.2 | % | 3.5 | % | | | 3.5 | % | | | 2.5 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product Information | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Long Term Care | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income (loss) | | $ | (12 | ) | $ | 10 | | $ | 3 | | $ | 13 | | $ | 10 | | $ | (29 | ) | $ | 36 | | $ | 22 | | | # | $ | 65 | | | # | $ | (3 | ) | (23 | )% |
Allocated equity | | $ | 561 | | $ | 569 | | $ | 578 | | $ | 590 | | $ | 620 | | $ | 561 | | $ | 620 | | $ | 59 | | 11 | % | $ | 59 | | 11 | % | $ | 30 | | 5 | % |
Return on allocated equity (1) (2) | | (3.3 | )% | (2.1 | )% | (1.8 | )% | 1.6 | % | 4.0 | % | (3.3 | )% | 4.0 | % | 7.3 | % | | | 7.3 | % | | | 2.4 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Protection excluding Long Term Care | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income | | $ | 45 | | $ | 102 | | $ | 107 | | $ | 132 | | $ | 119 | | $ | 381 | | $ | 460 | | $ | 74 | | | # | $ | 79 | | 21 | % | $ | (13 | ) | (10 | )% |
Allocated equity | | $ | 1,778 | | $ | 1,819 | | $ | 1,872 | | $ | 1,873 | | $ | 1,920 | | $ | 1,778 | | $ | 1,920 | | $ | 142 | | 8 | % | $ | 142 | | 8 | % | $ | 47 | | 3 | % |
Return on allocated equity (1) (2) | | | 13.8 | % | | 13.7 | % | | 13.4 | % | | 13.6 | % | | 16.1 | % | | 13.8 | % | | 16.1 | % | | 2.3 | % | | | | 2.3 | % | | | | 2.5 | % | | |
(1) See non-GAAP Financial Information.
(2) Calculated using the statutory tax rate of 35%.
# Variance of 100% or greater.
21
Ameriprise Financial, Inc.
Protection Segment
Fourth Quarter 2009
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2008 | | 1 Qtr 2009 | | 2 Qtr 2009 | | 3 Qtr 2009 | | 4 Qtr 2009 | | 2008 | | 2009 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Cash Sales | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VUL / UL (1) | | $ | 43 | | $ | 33 | | $ | 45 | | $ | 55 | | $ | 56 | | $ | 228 | | $ | 189 | | $ | 13 | | 30 | % | $ | (39 | ) | (17 | )% | $ | 1 | | 2 | % |
Term and whole life | | 5 | | 3 | | 4 | | 4 | | 4 | | 18 | | 15 | | (1 | ) | (20 | )% | (3 | ) | (17 | )% | — | | — | |
Disability insurance | | 3 | | 1 | | 3 | | 1 | | 2 | | 14 | | 7 | | (1 | ) | (33 | )% | (7 | ) | (50 | )% | 1 | | | # |
Auto and Home | | 154 | | 165 | | 165 | | 178 | | 166 | | 631 | | 674 | | 12 | | 8 | % | 43 | | 7 | % | (12 | ) | (7 | )% |
Total cash sales | | $ | 205 | | $ | 202 | | $ | 217 | | $ | 238 | | $ | 228 | | $ | 891 | | $ | 885 | | $ | 23 | | 11 | % | $ | (6 | ) | (1 | )% | $ | (10 | ) | (4 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
VUL / UL Policyholder Account Balances | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 8,591 | | $ | 7,570 | | $ | 7,350 | | $ | 7,957 | | $ | 8,593 | | $ | 9,836 | | $ | 7,570 | | $ | 2 | | — | | $ | (2,266 | ) | (23 | )% | $ | 636 | | 8 | % |
Premiums and deposits | | 230 | | 228 | | 231 | | 242 | | 248 | | 1,006 | | 949 | | 18 | | 8 | % | (57 | ) | (6 | )% | 6 | | 2 | % |
Investment performance and interest | | (965 | ) | (260 | ) | 644 | | 674 | | 244 | | (2,118 | ) | 1,302 | | 1,209 | | | # | 3,420 | | | # | (430 | ) | (64 | )% |
Withdrawals and surrenders | | (255 | ) | (254 | ) | (268 | ) | (280 | ) | (282 | ) | (1,088 | ) | (1,084 | ) | (27 | ) | (11 | )% | 4 | | — | | (2 | ) | (1 | )% |
Other | | (31 | ) | 66 | | — | | — | | — | | (66 | ) | 66 | | 31 | | | # | 132 | | | # | — | | — | |
Total ending balance | | $ | 7,570 | | $ | 7,350 | | $ | 7,957 | | $ | 8,593 | | $ | 8,803 | | $ | 7,570 | | $ | 8,803 | | $ | 1,233 | | 16 | % | $ | 1,233 | | 16 | % | $ | 210 | | 2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Premiums by Product | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Term and whole life | | $ | 14 | | $ | 14 | | $ | 14 | | $ | 14 | | $ | 14 | | $ | 59 | | $ | 56 | | $ | — | | — | | $ | (3 | ) | (5 | )% | $ | — | | — | |
Disability insurance | | 43 | | 43 | | 42 | | 43 | | 42 | | 173 | | 170 | | (1 | ) | (2 | )% | (3 | ) | (2 | )% | (1 | ) | (2 | )% |
Long term care | | 31 | | 29 | | 30 | | 30 | | 31 | | 121 | | 120 | | — | | — | | (1 | ) | (1 | )% | 1 | | 3 | % |
Auto and Home | | 157 | | 156 | | 160 | | 164 | | 168 | | 610 | | 648 | | 11 | | 7 | % | 38 | | 6 | % | 4 | | 2 | % |
Intercompany premiums | | 9 | | 5 | | 8 | | 6 | | 7 | | 31 | | 26 | | (2 | ) | (22 | )% | (5 | ) | (16 | )% | 1 | | 17 | % |
Total premiums by product | | $ | 254 | | $ | 247 | | $ | 254 | | $ | 257 | | $ | 262 | | $ | 994 | | $ | 1,020 | | $ | 8 | | 3 | % | $ | 26 | | 3 | % | $ | 5 | | 2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Auto and Home Insurance | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Policy count (thousands) | | 547 | | 558 | | 570 | | 581 | | 594 | | 547 | | 594 | | 47 | | 9 | % | 47 | | 9 | % | 13 | | 2 | % |
Loss ratio | | 80.4 | % | 79.6 | % | 79.6 | % | 80.4 | % | 81.8 | % | 77.9 | % | 80.4 | % | 1.4 | % | | | 2.5 | % | | | 1.4 | % | | |
Expense ratio | | 16.2 | % | 14.8 | % | 15.2 | % | 15.0 | % | 17.5 | % | 17.2 | % | 15.6 | % | 1.3 | % | | | (1.6 | )% | | | 2.5 | % | | |
Combined ratio | | 96.6 | % | 94.4 | % | 94.8 | % | 95.4 | % | 99.3 | % | 95.1 | % | 96.0 | % | 2.7 | % | | | 0.9 | % | | | 3.9 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
DAC Rollforward | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Life and Health | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 1,920 | | $ | 1,946 | | $ | 1,920 | | $ | 1,858 | | $ | 1,853 | | $ | 1,998 | | $ | 1,946 | | $ | (67 | ) | (3 | )% | $ | (52 | ) | (3 | )% | $ | (5 | ) | — | |
Capitalization | | 41 | | 29 | | 30 | | 32 | | 33 | | 169 | | 124 | | (8 | ) | (20 | )% | (45 | ) | (27 | )% | 1 | | 3 | % |
Amortization per income statement | | (83 | ) | (48 | ) | (38 | ) | 17 | | (39 | ) | (285 | ) | (108 | ) | 44 | | 53 | % | 177 | | 62 | % | (56 | ) | | # |
Other (FAS 115) | | 68 | | (7 | ) | (54 | ) | (54 | ) | 5 | | 64 | | (110 | ) | (63 | ) | (93 | )% | (174 | ) | | # | 59 | | | # |
Total ending balance | | $ | 1,946 | | $ | 1,920 | | $ | 1,858 | | $ | 1,853 | | $ | 1,852 | | $ | 1,946 | | $ | 1,852 | | $ | (94 | ) | (5 | )% | $ | (94 | ) | (5 | )% | $ | (1 | ) | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Life insurance in force | | $ | 192,061 | | $ | 192,022 | | $ | 192,186 | | $ | 192,558 | | $ | 192,871 | | $ | 192,061 | | $ | 192,871 | | $ | 810 | | — | | $ | 810 | | — | | $ | 313 | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Amount at Risk | | $ | 56,857 | | $ | 55,578 | | $ | 54,336 | | $ | 53,346 | | $ | 52,575 | | $ | 56,857 | | $ | 52,575 | | $ | (4,282 | ) | (8 | )% | $ | (4,282 | ) | (8 | )% | $ | (771 | ) | (1 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Policyholder Reserves | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VUL / UL | | $ | 6,637 | | $ | 6,360 | | $ | 6,911 | | $ | 7,552 | | $ | 7,776 | | $ | 6,637 | | $ | 7,776 | | $ | 1,139 | | 17 | % | $ | 1,139 | | 17 | % | $ | 224 | | 3 | % |
Term and whole life | | 238 | | 236 | | 234 | | 238 | | 236 | | 238 | | 236 | | (2 | ) | (1 | )% | (2 | ) | (1 | )% | (2 | ) | (1 | )% |
Disability insurance | | 458 | | 469 | | 472 | | 476 | | 480 | | 458 | | 480 | | 22 | | 5 | % | 22 | | 5 | % | 4 | | 1 | % |
Long term care and other | | 2,375 | | 2,351 | | 2,374 | | 2,401 | | 2,424 | | 2,375 | | 2,424 | | 49 | | 2 | % | 49 | | 2 | % | 23 | | 1 | % |
Auto and Home loss and LAE reserves | | 308 | | 303 | | 304 | | 306 | | 313 | | 308 | | 313 | | 5 | | 2 | % | 5 | | 2 | % | 7 | | 2 | % |
Total net policyholder reserves | | $ | 10,016 | | $ | 9,719 | | $ | 10,295 | | $ | 10,973 | | $ | 11,229 | | $ | 10,016 | | $ | 11,229 | | $ | 1,213 | | 12 | % | $ | 1,213 | | 12 | % | $ | 256 | | 2 | % |
(1) Includes lump sum deposits.
# Variance of 100% or greater.
22
Statistical Supplement Package
(unaudited)
Fourth Quarter 2009
Corporate & Other Segment
23
Ameriprise Financial, Inc.
Corporate & Other Segment
Fourth Quarter 2009
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2008 | | 1 Qtr 2009 | | 2 Qtr 2009 | | 3 Qtr 2009 | | 4 Qtr 2009 | | 2008 | | 2009 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | — | | $ | — | | — | | $ | — | | — | |
Distribution fees | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Net investment income | | (36 | ) | (21 | ) | (15 | ) | (11 | ) | (12 | ) | (25 | ) | (59 | ) | 24 | | 67 | % | (34 | ) | | # | (1 | ) | (9 | )% |
Premiums | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Other revenues | | 22 | | 51 | | 8 | | 2 | | 1 | | 26 | | 62 | | (21 | ) | (95 | )% | 36 | | | # | (1 | ) | (50 | )% |
Total revenues | | (14 | ) | 30 | | (7 | ) | (9 | ) | (11 | ) | 1 | | 3 | | 3 | | 21 | % | 2 | | | # | (2 | ) | (22 | )% |
Banking and deposit interest expense | | 1 | | 1 | | (2 | ) | 2 | | — | | 2 | | 1 | | (1 | ) | | # | (1 | ) | (50 | )% | (2 | ) | | # |
Total net revenues | | (15 | ) | 29 | | (5 | ) | (11 | ) | (11 | ) | (1 | ) | 2 | | 4 | | 27 | % | 3 | | | # | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | — | | 1 | | 1 | | — | | 1 | | 1 | | 3 | | 1 | | — | | 2 | | | # | 1 | | — | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Amortization of deferred acquisition costs | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Interest and debt expense | | 28 | | 26 | | 28 | | 45 | | 28 | | 109 | | 127 | | — | | — | | 18 | | 17 | % | (17 | ) | (38 | )% |
General and administrative expense | | 74 | | 26 | | 32 | | 39 | | 40 | | 253 | | 137 | | (34 | ) | (46 | )% | (116 | ) | (46 | )% | 1 | | 3 | % |
Total expenses | | 102 | | 53 | | 61 | | 84 | | 69 | | 363 | | 267 | | (33 | ) | (32 | )% | (96 | ) | (26 | )% | (15 | ) | (18 | )% |
Pretax segment loss | | $ | (117 | ) | $ | (24 | ) | $ | (66 | ) | $ | (95 | ) | $ | (80 | ) | $ | (364 | ) | $ | (265 | ) | $ | 37 | | 32 | % | $ | 99 | | 27 | % | $ | 15 | | 16 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment income on fixed maturities | | $ | 5 | | $ | — | | $ | — | | $ | 1 | | $ | — | | $ | 52 | | $ | 1 | | $ | (5 | ) | | # | $ | (51 | ) | (98 | )% | $ | (1 | ) | | # |
Realized gains (losses) | | (3 | ) | — | | 7 | | 2 | | (9 | ) | (3 | ) | — | | (6 | ) | | # | 3 | | | # | (11 | ) | | # |
Affordable housing | | (17 | ) | (6 | ) | (7 | ) | (7 | ) | (5 | ) | (39 | ) | (25 | ) | 12 | | 71 | % | 14 | | 36 | % | 2 | | 29 | % |
Other | | (21 | ) | (15 | ) | (15 | ) | (7 | ) | 2 | | (35 | ) | (35 | ) | 23 | | | # | — | | — | | 9 | | | # |
Total net investment income | | $ | (36 | ) | $ | (21 | ) | $ | (15 | ) | $ | (11 | ) | $ | (12 | ) | $ | (25 | ) | $ | (59 | ) | $ | 24 | | 67 | % | $ | (34 | ) | | # | $ | (1 | ) | (9 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance Sheet Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated equity | | $ | 115 | | $ | 484 | | $ | 2,087 | | $ | 2,144 | | $ | 2,210 | | $ | 115 | | $ | 2,210 | | $ | 2,095 | | | # | $ | 2,095 | | | # | $ | 66 | | 3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
# Variance of 100% or greater.
24
Ameriprise Financial, Inc.
Eliminations (1)
Fourth Quarter 2009
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2008 | | 1 Qtr 2009 | | 2 Qtr 2009 | | 3 Qtr 2009 | | 4 Qtr 2009 | | 2008 | | 2009 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | (12 | ) | $ | (23 | ) | $ | (34 | ) | $ | (31 | ) | $ | (31 | ) | $ | (51 | ) | $ | (119 | ) | $ | (19 | ) | | # | $ | (68 | ) | | # | $ | — | | — | |
Distribution fees | | (235 | ) | (248 | ) | (208 | ) | (208 | ) | (209 | ) | (975 | ) | (873 | ) | 26 | | 11 | % | 102 | | 10 | % | (1 | ) | — | |
Net investment income | | — | | — | | — | | (1 | ) | — | | (6 | ) | (1 | ) | — | | — | | 5 | | 83 | % | 1 | | | # |
Premiums | | (8 | ) | (5 | ) | (8 | ) | (6 | ) | (7 | ) | (31 | ) | (26 | ) | 1 | | 13 | % | 5 | | 16 | % | (1 | ) | (17 | )% |
Other revenues | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Total revenues | | (255 | ) | (276 | ) | (250 | ) | (246 | ) | (247 | ) | (1,063 | ) | (1,019 | ) | 8 | | 3 | % | 44 | | 4 | % | (1 | ) | — | |
Banking and deposit interest expense | | (2 | ) | (1 | ) | — | | — | | (1 | ) | (9 | ) | (2 | ) | 1 | | 50 | % | 7 | | 78 | % | (1 | ) | — | |
Total net revenues | | (253 | ) | (275 | ) | (250 | ) | (246 | ) | (246 | ) | (1,054 | ) | (1,017 | ) | 7 | | 3 | % | 37 | | 4 | % | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | (199 | ) | (222 | ) | (187 | ) | (192 | ) | (192 | ) | (852 | ) | (793 | ) | 7 | | 4 | % | 59 | | 7 | % | — | | — | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Amortization of deferred acquisition costs | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
General and administrative expense | | (54 | ) | (53 | ) | (63 | ) | (54 | ) | (54 | ) | (202 | ) | (224 | ) | — | | — | | (22 | ) | (11 | )% | — | | — | |
Total expenses | | (253 | ) | (275 | ) | (250 | ) | (246 | ) | (246 | ) | (1,054 | ) | (1,017 | ) | 7 | | 3 | % | 37 | | 4 | % | — | | — | |
Pretax segment income (loss) | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | — | | $ | — | | — | | $ | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) The majority of the amounts represent the impact of inter-segment transfer pricing for both revenues and expenses.
# Variance of 100% or greater.
25
Statistical Supplement Package
(unaudited)
Fourth Quarter 2009
Balance Sheet and Ratings Information
26
Ameriprise Financial, Inc.
Consolidated Balance Sheets
(in millions, unaudited) | | December 31, 2008 | | March 31, 2009 | | June 30, 2009 | | September 30, 2009 | | December 31, 2009 | |
Assets | | | | | | | | | | | |
Cash and cash equivalents | | $ | 6,228 | | $ | 5,796 | | $ | 4,469 | | $ | 3,580 | | $ | 3,097 | |
Investments | | 27,522 | | 30,738 | | 34,793 | | 36,847 | | 36,974 | |
Separate account assets | | 44,746 | | 42,014 | | 48,661 | | 55,576 | | 58,129 | |
Receivables | | 3,887 | | 3,579 | | 4,067 | | 4,247 | | 4,435 | |
Deferred acquisition costs | | 4,383 | | 4,237 | | 4,361 | | 4,323 | | 4,334 | |
Restricted and segregated cash | | 1,883 | | 1,811 | | 1,730 | | 1,822 | | 1,633 | |
Other assets | | 6,928 | | 6,406 | | 5,133 | | 4,806 | | 5,172 | |
Total assets | | $ | 95,577 | | $ | 94,581 | | $ | 103,214 | | $ | 111,201 | | $ | 113,774 | |
| | | | | | | | | | | |
Liabilities | | | | | | | | | | | |
Future policy benefits and claims | | $ | 29,293 | | $ | 30,956 | | $ | 30,916 | | $ | 31,042 | | $ | 30,886 | |
Separate account liabilities | | 44,746 | | 42,014 | | 48,661 | | 55,576 | | 58,129 | |
Customer deposits | | 8,229 | | 8,465 | | 9,216 | | 9,028 | | 8,554 | |
Debt | | 2,027 | | 1,922 | | 2,435 | | 2,076 | | 2,249 | |
Accounts payable and accrued expenses | | 887 | | 713 | | 825 | | 765 | | 918 | |
Other liabilities | | 3,928 | | 3,874 | | 2,787 | | 3,320 | | 3,162 | |
Total liabilities | | 89,110 | | 87,944 | | 94,840 | | 101,807 | | 103,898 | |
| | | | | | | | | | | |
Shareholders’ Equity | | | | | | | | | | | |
Ameriprise Financial | | | | | | | | | | | |
Common shares ($.01 par) | | 3 | | 3 | | 3 | | 3 | | 3 | |
Additional paid-in capital | | 4,688 | | 4,719 | | 5,641 | | 5,699 | | 5,748 | |
Retained earnings | | 4,592 | | 4,817 | | 4,875 | | 5,091 | | 5,282 | |
Treasury stock | | (2,012 | ) | (2,021 | ) | (2,021 | ) | (2,021 | ) | (2,023 | ) |
Accumulated other comprehensive income (loss), net of tax | | (1,093 | ) | (1,134 | ) | (388 | ) | 277 | | 263 | |
Total Ameriprise Financial shareholders’ equity | | 6,178 | | 6,384 | | 8,110 | | 9,049 | | 9,273 | |
Noncontrolling interest | | 289 | | 253 | | 264 | | 345 | | 603 | |
Total equity | | 6,467 | | 6,637 | | 8,374 | | 9,394 | | 9,876 | |
Total liabilities and shareholders’ equity | | $ | 95,577 | | $ | 94,581 | | $ | 103,214 | | $ | 111,201 | | $ | 113,774 | |
27
Ameriprise Financial, Inc.
Capital and Ratings Information
(in millions unless otherwise noted, unaudited) | | December 31, 2008 | | March 31, 2009 | | June 30, 2009 | | September 30, 2009 | | December 31, 2009 | |
Debt Summary | | | | | | | | | | | |
Senior notes | | $ | 1,500 | | $ | 1,500 | | $ | 1,990 | | $ | 1,540 | | $ | 1,540 | |
Junior subordinated notes (2) | | 457 | | 344 | | 322 | | 322 | | 322 | |
| | | | | | | | | | | |
Non-recourse debt | | | | | | | | | | | |
Debt for inverse floaters | | 6 | | 6 | | 6 | | 6 | | 6 | |
Debt of property fund limited partnerships | | 64 | | 72 | | 117 | | 208 | | 381 | |
Total non-recourse debt | | 70 | | 78 | | 123 | | 214 | | 387 | |
Total debt | | $ | 2,027 | | $ | 1,922 | | $ | 2,435 | | $ | 2,076 | | $ | 2,249 | |
| | | | | | | | | | | |
Total debt | | $ | 2,027 | | $ | 1,922 | | $ | 2,435 | | $ | 2,076 | | $ | 2,249 | |
Total non-recourse debt | | (70 | ) | (78 | ) | (123 | ) | (214 | ) | (387 | ) |
Total debt excluding non-recourse debt (1) | | 1,957 | | 1,844 | | 2,312 | | 1,862 | | 1,862 | |
Junior subordinated notes 75% equity credit (2) | | (343 | ) | (258 | ) | (242 | ) | (242 | ) | (242 | ) |
Total debt excluding non-recourse debt and 75% equity credit (1) (2) | | $ | 1,614 | | $ | 1,586 | | $ | 2,070 | | $ | 1,620 | | $ | 1,620 | |
| | | | | | | | | | | |
Total Ameriprise Financial shareholders’ equity | | $ | 6,178 | | $ | 6,384 | | $ | 8,110 | | $ | 9,049 | | $ | 9,273 | |
Total capital | | 8,205 | | 8,306 | | 10,545 | | 11,125 | | 11,522 | |
Total capital excluding non-recourse debt (1) | | $ | 8,135 | | $ | 8,228 | | $ | 10,422 | | $ | 10,911 | | $ | 11,135 | |
| | | | | | | | | | | |
Other Information | | | | | | | | | | | |
Debt to total capital | | 24.7 | % | 23.1 | % | 23.1 | % | 18.7 | % | 19.5 | % |
Debt to total capital excluding non-recourse debt (1) | | 24.1 | % | 22.4 | % | 22.2 | % | 17.1 | % | 16.7 | % |
Debt to total capital excluding non-recourse debt and 75% equity credit (1) | | 19.8 | % | 19.3 | % | 19.9 | % | 14.8 | % | 14.5 | % |
Ratings (as of December 31, 2009) | | A.M. Best Company | | Standard & Poor’s Rating Services | | Moody’s Investors Service, Inc. | | Fitch Ratings Ltd. | |
Claims Paying Ratings (3) | | | | | | | | | |
RiverSource Life Insurance Company | | A+ | | AA- | | Aa3 | | AA- | |
IDS Property Casualty Ins. Company | | A | | N/R | | N/R | | N/R | |
| | | | | | | | | |
Debt Ratings (3) | | | | | | | | | |
Ameriprise Financial, Inc. | | a- | | A | | A3 | | A- | |
(1) See non-GAAP Financial Information.
(2) The Company’s junior subordinated notes receive an equity credit of at least 75% by the majority of rating agencies.
(3) For the most current ratings information, please see the individual rating agency’s website.
28
Ameriprise Financial, Inc.
Investments
(in millions unless otherwise noted, unaudited) | | December 31, 2008 | | March 31, 2009 | | June 30, 2009 | | September 30, 2009 | | December 31, 2009 | |
Cash and cash equivalents | | $ | 6,228 | | $ | 5,796 | | $ | 4,469 | | $ | 3,580 | | $ | 3,097 | |
| | | | | | | | | | | |
Investments - Ending Balances | | | | | | | | | | | |
Available-for-Sale Securities | | | | | | | | | | | |
Corporate debt securities | | 12,599 | | 12,969 | | 15,016 | | 16,487 | | 16,123 | |
| | | | | | | | | | | |
Residential mortgage backed securities | | 5,235 | | 6,720 | | 7,434 | | 8,049 | | 7,770 | |
Commercial mortgage backed securities | | 2,733 | | 3,438 | | 4,056 | | 4,373 | | 4,613 | |
Asset backed securities | | 958 | | 1,305 | | 1,909 | | 1,846 | | 1,994 | |
Total mortgage and other asset backed securities | | 8,926 | | 11,463 | | 13,399 | | 14,268 | | 14,377 | |
| | | | | | | | | | | |
Other structured investments | | 50 | | 38 | | 49 | | 55 | | 58 | |
State and municipal obligations | | 873 | | 947 | | 1,089 | | 1,322 | | 1,417 | |
US government and agencies obligations | | 271 | | 188 | | 185 | | 312 | | 387 | |
Foreign government bonds and obligations | | 107 | | 105 | | 106 | | 109 | | 108 | |
Common and preferred stocks | | 37 | | 23 | | 39 | | 48 | | 43 | |
Other AFS | | 10 | | 29 | | 28 | | 24 | | 33 | |
Total other | | 1,348 | | 1,330 | | 1,496 | | 1,870 | | 2,046 | |
Total available-for-sale securities | | 22,873 | | 25,762 | | 29,911 | | 32,625 | | 32,546 | |
| | | | | | | | | | | |
Commercial mortgage loans | | 2,906 | | 2,871 | | 2,786 | | 2,735 | | 2,695 | |
Allowance for loan losses | | (19 | ) | (19 | ) | (28 | ) | (29 | ) | (32 | ) |
Commercial mortgage loans, net | | 2,887 | | 2,852 | | 2,758 | | 2,706 | | 2,663 | |
| | | | | | | | | | | |
Policy loans | | 729 | | 722 | | 715 | | 719 | | 720 | |
Trading securities | | 501 | | 874 | | 904 | | 313 | | 592 | |
Other investments | | 532 | | 528 | | 505 | | 484 | | 453 | |
Total investments | | 27,522 | | 30,738 | | 34,793 | | 36,847 | | 36,974 | |
| | | | | | | | | | | |
Total cash, cash equivalents and investments | | $ | 33,750 | | $ | 36,534 | | $ | 39,262 | | $ | 40,427 | | $ | 40,071 | |
| | | | | | | | | | | |
Net unrealized gain (loss) Available-for-Sale Securities | | $ | (1,835 | ) | $ | (1,822 | ) | $ | (577 | ) | $ | 799 | | $ | 686 | |
| | | | | | | | | | | |
AFS Fixed Maturity Asset Quality - % | | | | | | | | | | | |
AAA | | 40 | % | 42 | % | 42 | % | 41 | % | 41 | % |
AA | | 7 | % | 6 | % | 4 | % | 4 | % | 5 | % |
AFS securities AA and above | | 47 | % | 48 | % | 46 | % | 45 | % | 46 | % |
A | | 19 | % | 15 | % | 13 | % | 16 | % | 15 | % |
BBB | | 29 | % | 31 | % | 34 | % | 33 | % | 33 | % |
Below investment grade | | 5 | % | 6 | % | 7 | % | 6 | % | 6 | % |
Total AFS fixed maturity asset quality - % | | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
| | | | | | | | | | | |
Fair Value of Below Investment Grade as a % of Total cash and investments | | 5 | % | 6 | % | 7 | % | 6 | % | 5 | % |
29
Ameriprise Financial, Inc.
Non-GAAP Financial Information
Ameriprise Financial, Inc. (the Company) follows 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.
This report contains certain non-GAAP measures, which our management views as important indicators of financial performance. These non-GAAP measures include:
· Pretax income (loss) margin and Pretax segment income (loss) margin;
· Net income (loss) attributable to Ameriprise Financial margin;
· Return on allocated equity;
· Debt to total capital excluding non-recourse debt;
· Debt to total capital excluding non-recourse debt and 75% equity credit;
· Pretax operating earnings;
· Pretax operating earnings margin;
· Total debt excluding non-recourse debt;
· Total debt excluding non-recourse debt and 75% equity credit; and
· Total capital excluding non-recourse debt.
Management believes that the presentation of these non-GAAP financial measures excluding these specific income statement impacts best reflects the underlying performance of the Company’s ongoing operations and facilitates a more meaningful trend analysis. These non-GAAP measures are also used for goal setting, certain compensation related to the Company’s annual incentive award program and evaluating the Company’s performance on a basis comparable to that used by securities analysts.
The Company presents debt to capital ratios excluding non-recourse debt of structured entities consolidated in accordance with FIN 46(R), EITF 04-5 and other accounting literature and with a 75% equity credit for the Company’s junior subordinated debt. Management believes that the debt to capital ratios excluding this non-recourse debt better represent the Company’s capital structure.
Reclassification
Certain prior period information has been restated to conform to current period presentation.
30
Ameriprise Financial, Inc.
Glossary of Selected Terminology - Segments
Advice & Wealth Management - This segment provides financial planning and advice, as well as full service brokerage and banking services, primarily to retail clients through our financial advisors. Our affiliated financial advisors utilize a diversified selection of both proprietary and non-proprietary 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 from primarily certificate and banking products. This segment earns revenues (distribution fees) for distributing non-proprietary products and earns intersegment revenues (distribution fees) for distributing our proprietary products and services to our retail clients. Intersegment expenses for this segment include expenses for investment management services provided by our Asset Management segment.
Asset Management - This segment provides investment advice and investment products to retail and institutional clients. RiverSource Investments predominantly provides U.S. domestic products and services and Threadneedle Asset Management Holdings Sàrl (Threadneedle) predominantly provides international investment products and services. U.S. Domestic retail products are primarily distributed through our Advice & Wealth Management segment and also through unaffiliated advisors. International retail products are primarily distributed through third parties. Retail products include mutual funds, variable product funds underlying insurance and annuity separate accounts, separately managed accounts and collective funds. Asset Management products are also distributed directly to institutions through an institutional sales force. Institutional asset management products include traditional asset classes, separate accounts, collateralized loan obligations, hedge funds and property funds. Revenues in this segment are primarily earned as fees based on managed asset balances, which are impacted by both market movements and net asset flows. This segment earns intersegment revenue for investment management services. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management, Annuities and Protection segments.
Annuities - This segment provides variable and fixed annuity products of RiverSource Life companies to retail clients primarily distributed through our affiliated financial advisors and to the retail clients of unaffiliated distributors through third-party distribution. Revenues for our variable annuity products are primarily earned as fees based on underlying account balances, which are impacted by both market movements and net asset flows. Revenues for our fixed annuity products are primarily earned as net investment income on assets supporting fixed account balances, with profitability significantly impacted by the spread between net investment income earned and interest credited on the fixed account balances. We also earn net investment income on owned assets supporting reserves for immediate annuities and for certain guaranteed benefits offered with variable annuities and on capital supporting the business. Intersegment revenues for this segment reflect fees paid by our Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource 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 offers a variety of protection products to address the identified protection and risk management needs of our retail clients including life, disability income and property-casualty insurance. Life and disability income products are primarily distributed through our branded advisors. Our property-casualty products are sold direct, primarily through affinity relationships. We issue insurance policies through our life insurance subsidiaries and property casualty companies. The primary sources of revenues for this segment are premiums, fees, and charges that 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 the Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource 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 on corporate level assets, including excess capital held in our subsidiaries and other unallocated equity and other revenues from various investments as well as unallocated corporate expenses.
31
Ameriprise Financial, Inc.
Glossary of Selected Terminology
Administered Assets - Administered assets include assets for which we provide administrative services such as client assets invested in other companies’ products that we offer outside of our wrap accounts. These assets include those held in clients’ brokerage accounts. We 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.
Alternative Assets - Assets reported by the Company that include Hedge Funds and Collateralized Debt Obligations (“CDO”).
Allocated Equity - The internal allocation of consolidated Ameriprise Financial shareholders’ equity, excluding accumulated other comprehensive income (loss) is based on management’s best estimate of capital required by the business, and may include capital for contingences. Equity is allocated to our operating segments for purposes of measuring segment return on allocated equity. Allocated equity does not represent insurance company risk-based capital or other regulatory capital requirements applicable to us and certain of our subsidiaries. For the Corporate & Other segment, allocated equity also includes any equity available after equity has been allocated to the operating segments.
Ameriprise Financial - Ameriprise Financial includes ownership interests in subsidiaries that are attributable, directly or indirectly, to Ameriprise Financial, Inc. and excludes noncontrolling interests.
Auto & Home Insurance - Personal auto and home protection products marketed directly to customers through marketing affiliates such as Costco Wholesale Corporation and Ford Motor Credit Company. We sell these products through our auto and home subsidiary, IDS Property Casualty Insurance Company (doing business as Ameriprise Auto & Home Insurance).
Book Value per Share - Total Ameriprise Financial shareholders’ equity divided by the number of basic common shares outstanding at period-end.
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 (owned, managed or administered), 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”.
Debt to Total Capital Ratio - A ratio comprised of total debt divided by Total Capital. We also present debt to capital ratios excluding non-recourse debt of structured entities consolidated in accordance with FIN 46(R), EITF 04-5 and other accounting literature and a 75% equity credit for our junior subordinated debt.
Deferred Acquisition Costs and Amortization - Deferred acquisition costs (“DAC”) represent the costs of acquiring new protection, annuity and certain mutual fund business, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of annuity, life, disability income and long term care insurance and, to a lesser extent, deferred marketing and promotion expenses on auto and home insurance and deferred distribution costs on certain mutual fund products. These costs are deferred to the extent they are recoverable from future profits.
FAS 115 - 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.
Financial Planning Penetration - The period-end number of current clients who have received a financial plan, or have entered into an agreement to receive and have paid for a financial plan, divided by the number of active retail client groups, serviced by branded financial advisors.
Life Insurance in force - The total amount of all life insurance death benefits currently insured by our company.
Managed Assets External Client - Managed external client assets include client assets for which we provide investment management services, such as the assets of the RiverSource and Seligman families of mutual funds, assets of institutional clients and client assets held in wrap accounts (retail accounts for which we receive an advice fee based on assets held in the account). Managed external client assets also include assets managed by sub-advisors selected by us. Managed external client assets are not reported on our Consolidated Balance Sheets.
Managed Assets Owned - Managed owned assets include certain assets on our Consolidated Balance Sheets for which we provide investment management services and recognize management fees, such as the assets of the general account and RiverSource Variable Product funds held in the separate accounts of our life insurance subsidiaries.
Net Amount at Risk - Life insurance in force less policyholder reserves net of re-insurance.
Net Flows - Sales less redemptions and miscellaneous flows which may include reinvested dividends.
Net Income (Loss) Margin - A ratio representing net income as a percentage of total net revenues.
Owned Assets - Owned assets 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-proprietary funds held in the separate accounts of our life insurance subsidiaries, as well as restricted and segregated cash and receivables.
Pretax Segment Income (Loss) or Pretax Income (Loss) - Income (loss) before net income (loss) attributable to noncontrolling interest and income tax provision (benefit).
Pretax Segment Income (Loss) Margin or Pretax Income (Loss) Margin - A ratio representing pretax income (loss) or pretax segment income (loss) as a percentage of total net revenues.
Pretax Operating Earnings - Pretax segment income (loss) plus or minus net realized gains (losses).
Pretax Operating Earnings Margin - A ratio representing pretax operating earnings as a percentage of total net revenues.
Return on Allocated Equity - Calculated using net income (loss) subject to statutory tax rate of 35% for the last twelve months and the average allocated equity as of the last day of the trailing four quarters and current quarter end.
Securities America - Securities America, Inc. (“SAI”) is a registered broker-dealer and an insurance agency.
Separate Account - Represent 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 entity 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.
Third Party Distribution - Distribution of RiverSource products, which include a variety of equity and fixed income mutual funds, annuities and insurance products, to retail clients through unaffiliated financial institutions and broker-dealers. The Third Party channel is separate from the Branded Advisor, Threadneedle, SAFC, and Institutional sales channels.
Threadneedle - Threadneedle Asset Management Holdings Sarl is a holding company for the London-based Threadneedle companies, which provide investment management products and services.
Total Capital - Total Ameriprise Financial shareholders’ equity plus total debt. Total capital is also presented excluding non-recourse debt.
Wrap Accounts - Wrap accounts enable our clients to purchase other securities such as mutual funds in connection with investment advisory fee-based “wrap account” programs or services. We offer clients the opportunity to select products that include proprietary and non-proprietary funds. We currently offer both discretionary and non-discretionary investment advisory wrap accounts. In a discretionary wrap account, an unaffiliated investment advisor or our investment management subsidiary, RiverSource Investments, LLC chooses the underlying investments in the portfolio on behalf of the client. In a non-discretionary wrap account, the client chooses the underlying investments in the portfolio based, to the extent the client elects, in part or whole on the recommendations of their financial advisor. Investors in our wrap accounts generally pay an asset-based fee based on the assets held in their wrap accounts. These investors also pay any related fees or costs included in the underlying securities held in that account, such as underlying mutual fund operating expenses and Rule 12b-1 fees.
32
Exhibit A
Statistical Supplement Package
(unaudited)
Fourth Quarter 2009
Reconciliation Tables
33
Ameriprise Financial, Inc.
Return on Equity Calculation (1)
Fourth Quarter 2009
| | Return on Equity Calculation for the Twelve Months Ended | |
(in millions, unaudited) | | December 31, 2008 | | March 31, 2009 | | June 30, 2009 | | September 30, 2009 | | December 31, 2009 | |
| | | | | | | | | | | |
Return | | $ | (38 | ) | $ | (99 | ) | $ | (214 | ) | $ | 116 | | $ | 722 | |
Ameriprise Financial shareholders’ equity | | $ | 7,120 | | $ | 6,835 | | $ | 6,941 | | $ | 7,288 | | $ | 7,799 | |
Return on Equity | | (0.5 | )% | (1.4 | )% | (3.1 | )% | 1.6 | % | 9.3 | % |
(1) Return on equity is calculated using the trailing twelve months income in the numerator and Ameriprise Financial shareholders’ equity, calculated using a five point average of quarter-end equity, in the denominator.
34
Exhibit B
Statistical Supplement Package
(unaudited)
Fourth Quarter 2009
Disclosed Items
35
Ameriprise Financial, Inc.
Disclosed Items
Fourth Quarter 2009
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Advice & Wealth Management | | Asset Management | | Annuities | | Protection | | Corporate | | | |
| | | | | | | | Consolidated | | | | | | VA | | Market | | | | Market | | | | | | | | | |
| | Securities | | Integration | | Integration | | Managed | | Hedge Fund | | Securities | | Guarantee | | Impacts | | Securities | | Impacts | | Reserve | | Securities | | Legal | | | |
(in millions, unaudited) | | Gains/(Losses) (1)(9) | | Charges (2)(9) | | Charges (2)(9) | | Funds (3) | | Performance Fees (4) | | Gains/(Losses) (1)(9) | | Impacts (5)(9) | | to DAC/DSIC (6)(9) | | Gains/(Losses) (1)(9) | | to DAC/DSIC (6)(9) | | Increase (7) | | Gains/(Losses) (1)(9) | | Expenses (8) | | Consolidated | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | — | | $ | — | | $ | — | | $ | (1 | ) | * | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | (1 | ) |
Distribution fees | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Net investment income | | (2 | ) | — | | — | | 1 | | — | | 16 | | — | | — | | 13 | | — | | — | | (9 | ) | — | | 19 | |
Premiums | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Other revenues | | — | | — | | — | | 43 | | — | | — | | — | | — | | — | | — | | — | | — | | — | | 43 | |
Total revenues | | (2 | ) | — | | — | | 43 | | — | | 16 | | — | | — | | 13 | | — | | — | | (9 | ) | — | | 61 | |
Banking and deposit interest expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Total net revenues | | (2 | ) | — | | — | | 43 | | — | | 16 | | — | | — | | 13 | | — | | — | | (9 | ) | — | | 61 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | — | | — | | — | | 5 | | — | | — | | — | | 14 | | — | | — | | 19 | |
Amortization of deferred acquisition costs | | — | | — | | — | | — | | — | | — | | — | | (3 | ) | — | | (1 | ) | — | | — | | — | | (4 | ) |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
General and administrative expense | | — | | 15 | | 7 | | 6 | | * | | — | | — | | — | | — | | — | | — | | — | | 19 | | 47 | |
Total expenses | | — | | 15 | | 7 | | 6 | | — | | — | | 5 | | (3 | ) | — | | (1 | ) | 14 | | — | | 19 | | 62 | |
Pretax segment income (loss) | | (2 | ) | (15 | ) | (7 | ) | 37 | | — | | 16 | | (5 | ) | 3 | | 13 | | 1 | | (14 | ) | (9 | ) | (19 | ) | (1 | ) |
Less: Net loss attributable to noncontrolling interest | | — | | — | | — | | 37 | | — | | — | | — | | — | | — | | — | | — | | — | | — | | 37 | |
Pretax segment gain (loss) excluding net loss attributable to noncontrolling interest | | $ | (2 | ) | $ | (15 | ) | $ | (7 | ) | $ | — | | $ | 30 | | $ | 16 | | $ | (5 | ) | $ | 3 | | $ | 13 | | $ | 1 | | $ | (14 | ) | $ | (9 | ) | $ | (19 | ) | $ | (8 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Includes net realized gains and losses on Available-for-Sale securities and an increase in reserves on commercial mortgage loans
(2) Non-recurring integration charges related to J. & W. Seligman & Co., H&R Block Financial Advisors and Columbia Management acquisitions
(3) Reflects consolidation of property fund limited partnerships managed by Threadneedle and hedge fund partnerships managed by RiverSource
(4) The company has chosen not to disclose the gross revenue and expense amounts for competitive reasons, but instead has shown the net PTI impact
(5) Variable annuity guarantee impacts include:
$ 3 million net expense related to hedged variable annuity living benefits
$ 2 million increase in death and income benefit expenses due to higher equity market valuations
(6) Decrease in DAC and DSIC amortization from higher period ending account values
(7) Increase in VUL/UL reserves related to modeling assumptions
(8) Increase in legal expenses related to a previously disclosed client mediation
(9) Excluded from core operating earnings
36
Ameriprise Financial, Inc.
Disclosed Items
Fourth Quarter 2008
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Advice & Wealth Management | | Asset Management | | Annuities | | Protection | | Corporate | | | |
| | | | Restructuring | | | | Consolidated | | Gain on Sale | | Restructuring | | | | VA | | Market | | | | Market | | | | Junior | | Restructuring | | | |
| | Securities | | & Integration | | Securities | | Managed | | of Operating | | & Integration | | Securities | | Guarantee | | Impacts | | Securities | | Impacts to | | Securities | | Subordinated Notes | | & Integration | | | |
(in millions, unaudited) | | Losses (1) | | Charges (7) | | Losses (1) | | Funds (2) | | Assets (3) | | Charges (7) | | Losses (1) | | Impacts (4) | | to DAC/DSIC (5) | | Losses (1) | | DAC/DSIC (5) | | Losses (1) | | Repurchase (6) | | Charges (7) | | Consolidated | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
Distribution fees | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Net investment income | | (194 | ) | — | | 1 | | — | | — | | — | | (169 | ) | — | | — | | (44 | ) | — | | (14 | ) | | | — | | (420 | ) |
Premiums | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Other revenues | | — | | — | | — | | (27 | ) | 36 | | — | | — | | — | | — | | — | | — | | — | | 19 | | — | | 28 | |
Total revenues | | (194 | ) | — | | 1 | | (27 | ) | 36 | | — | | (169 | ) | — | | — | | (44 | ) | — | | (14 | ) | 19 | | — | | (392 | ) |
Banking and deposit interest expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Total net revenues | | (194 | ) | — | | 1 | | (27 | ) | 36 | | — | | (169 | ) | — | | — | | (44 | ) | — | | (14 | ) | 19 | | — | | (392 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | — | | — | | — | | — | | (7 | ) | 32 | | — | | — | | — | | — | | — | | 25 | |
Amortization of deferred acquisition costs | | — | | — | | — | | — | | — | | — | | — | | 95 | | 171 | | — | | 49 | | — | | — | | — | | 315 | |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
General and administrative expense | | — | | 12 | | — | | 3 | | — | | 5 | | — | | — | | — | | — | | — | | — | | — | | 62 | | 82 | |
Total expenses | | — | | 12 | | — | | 3 | | — | | 5 | | — | | 88 | | 203 | | — | | 49 | | — | | — | | 62 | | 422 | |
Pretax segment income (loss) | | (194 | ) | (12 | ) | 1 | | (30 | ) | 36 | | (5 | ) | (169 | ) | (88 | ) | (203 | ) | (44 | ) | (49 | ) | (14 | ) | 19 | | (62 | ) | (814 | ) |
Less: Net loss attributable to noncontrolling interest | | — | | — | | — | | (30 | ) | — | | — | | — | | — | | — | | — | | — | | | | — | | — | | (30 | ) |
Pretax segment gain (loss) excluding net loss attributable to noncontrolling interest | | $ | (194 | ) | $ | (12 | ) | $ | 1 | | $ | — | | $ | 36 | | $ | (5 | ) | $ | (169 | ) | $ | (88 | ) | $ | (203 | ) | $ | (44 | ) | $ | (49 | ) | $ | (14 | ) | $ | 19 | | $ | (62 | ) | $ | (784 | ) |
(1) Pretax net realized gains and losses on Available-for-Sale securities, increase in reserves on bank loans and the fair value adjustment on low income housing investments
(2) Reflects consolidation of property fund limited partnerships managed by Threadneedle and hedge fund partnerships managed by RiverSource
(3) Gain on sale of operating assets
(4) Variable annuity guarantee impacts include:
$82 million net benefit related to variable annuity living benefit hedges
$41 million increase in DAC Amortization resulting from estimated 50% hedge offset, an immaterial portion of this offset is reflected in Benefits expenses in DSIC
$66 million write off related to expected reversal of FAS 157 credit spreads
$63 million increase in death and income benefit expenses due to lower equity market valuations
(5) Increase in DAC and DSIC amortization related to market and the DAC effect of the variable annuity living benefit riders, net of hedges
(6) Gain on the repurchase of certain junior subordinated notes
(7) Previously announced integration and restructuring charges
37
Ameriprise Financial, Inc.
Disclosed Items - Included in Core Operating Earnings
Third Quarter 2009
| | Asset Management | | Annuities | | Protection | | | |
| | Consolidated | | | | | | | | | |
| | Managed | | Legal | | Valuation | | Valuation | | | |
(in millions, unaudited) | | Funds (1) | | Expenses (2) | | Assumptions (3) | | Assumptions (3) | | Consolidated | |
Revenues | | | | | | | | | | | |
Management and financial advice fees | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
Distribution fees | | — | | — | | — | | — | | — | |
Net investment income | | (1 | ) | — | | — | | — | | (1 | ) |
Premiums | | — | | — | | — | | — | | — | |
Other revenues | | 4 | | — | | — | | (65 | ) | (61 | ) |
Total revenues | | 3 | | — | | — | | (65 | ) | (62 | ) |
Banking and deposit interest expense | | — | | — | | — | | — | | — | |
Total net revenues | | 3 | | — | | — | | (65 | ) | (62 | ) |
| | | | | | | | | | | |
Expenses | | | | | | | | | | | |
Distribution expenses | | — | | — | | — | | — | | — | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | (47 | ) | (33 | ) | (80 | ) |
Amortization of deferred acquisition costs | | — | | — | | (64 | ) | (55 | ) | (119 | ) |
Interest and debt expense | | — | | — | | — | | — | | — | |
General and administrative expense | | 3 | | 10 | | — | | — | | 13 | |
Total expenses | | 3 | | 10 | | (111 | ) | (88 | ) | (186 | ) |
Pretax segment income (loss) | | — | | (10 | ) | 111 | | 23 | | 124 | |
Less: Net loss attributable to noncontrolling interest | | — | | — | | — | | — | | — | |
Pretax segment gain (loss) excluding net loss attributable to noncontrolling interest | | $ | — | | $ | (10 | ) | $ | 111 | | $ | 23 | | $ | 124 | |
(1) | Reflects consolidation of property fund limited partnerships managed by Threadneedle and hedge fund partnerships managed by RiverSource |
(2) | Increase in legal expenses |
(3) | Net impact of annual review/updating of valuation assumptions |
38
Ameriprise Financial, Inc.
Disclosed Items - Excluded from Core Operating Earnings
Third Quarter 2009
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Advice & Wealth Management | | Asset Management | | Annuities | | Protection | | Corporate | | | |
| | | | | | | | VA | | Market | | | | Market | | | | | | | | | | | |
| | Securities | | Integration | | Integration | | Guarantee | | Impacts | | Securities | | Impacts | | Securities | | RiverSource | | Debt Retirement | | Integration | | | |
(in millions, unaudited) | | Gains/(Losses) (1) | | Charges (2) | | Charges (2) | | Impacts (3) | | to DAC/DSIC (4) | | Gains/(Losses) (1) | | to DAC/DSIC (4) | | Gains/(Losses) (1) | | 2a-7 Fund (5) | | Costs (6) | | Charges (2) | | Consolidated | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
Distribution fees | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Net investment income | | 5 | | — | | — | | — | | — | | 7 | | — | | 2 | | — | | — | | — | | 14 | |
Premiums | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Other revenues | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Total revenues | | 5 | | — | | — | | — | | — | | 7 | | — | | 2 | | — | | — | | — | | 14 | |
Banking and deposit interest expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Total net revenues | | 5 | | — | | — | | — | | — | | 7 | | — | | 2 | | — | | — | | — | | 14 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | 52 | | (4 | ) | — | | — | | — | | — | | — | | — | | 48 | |
Amortization of deferred acquisition costs | | — | | — | | — | | (53 | ) | (22 | ) | — | | (1 | ) | — | | — | | — | | — | | (76 | ) |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | 13 | | — | | 13 | |
General and administrative expense | | — | | 21 | | 7 | | — | | — | | — | | — | | — | | 10 | | — | | 4 | | 42 | |
Total expenses | | — | | 21 | | 7 | | (1 | ) | (26 | ) | — | | (1 | ) | — | | 10 | | 13 | | 4 | | 27 | |
Pretax segment income (loss) | | 5 | | (21 | ) | (7 | ) | 1 | | 26 | | 7 | | 1 | | 2 | | (10 | ) | (13 | ) | (4 | ) | (13 | ) |
Less: Net loss attributable to noncontrolling interest | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Pretax segment gain (loss) excluding net loss attributable to noncontrolling interest | | $ | 5 | | $ | (21 | ) | $ | (7 | ) | $ | 1 | | $ | 26 | | $ | 7 | | $ | 1 | | $ | 2 | | $ | (10 | ) | $ | (13 | ) | $ | (4 | ) | $ | (13 | ) |
(1) Pretax net realized investment gains/(losses) on Available-for-Sale securities and an increase in reserves on commercial mortgage loans
(2) Non-recurring integration charges related to J. & W. Seligman & Co., H&R Block Financial Advisors and Columbia Management acquisitions
(3) Variable annuity guarantee impacts include:
$ 66 million net expense related to hedged variable annuity living benefits
$ 63 million decrease in DAC and DSIC amortization resulting from hedged living benefits offset
$ 4 million decrease in death and income benefit expenses due to higher equity market valuations
(4) Decrease in DAC and DSIC amortization from higher period ending account values and from the impact of variable annuity living benefit costs, net of hedges
(5) Expenses to support $1 Net Asset Value of RiverSource money market funds
(6) Costs related to the early retirement of $450 million of the company’s notes due in 2010
39
Exhibit C
Statistical Supplement Package
(unaudited)
Fourth Quarter 2009
Prior Statistical Supplement Reconciliation Tables
40
Ameriprise Financial, Inc.
Reconciliation of Adjustments Affecting Historical Statistical Supplement Presentations
(in millions, unaudited) | | December 31, 2008 | | March 31, 2009 | | June 30, 2009 | | September 30, 2009 | |
Advice and Wealth Management Segment (1) | | | | | | | | | |
Net investment income | | | | | | | | | |
Net investment income - as previously reported | | $ | (119 | ) | $ | 54 | | $ | 85 | | $ | 95 | |
Net investment income - current presentation | | (123 | ) | 51 | | 82 | | 91 | |
Change | | $ | (4 | ) | $ | (3 | ) | $ | (3 | ) | $ | (4 | ) |
| | | | | | | | | |
Distribution expenses | | | | | | | | | |
Distribution expenses - as previously reported | | $ | 450 | | $ | 461 | | $ | 471 | | $ | 508 | |
Distribution expenses - current presentation | | 457 | | 462 | | 478 | | 504 | |
Change | | $ | 7 | | $ | 1 | | $ | 7 | | $ | (4 | ) |
| | | | | | | | | |
General and administrative expense | | | | | | | | | |
General and administrative expense - as previously reported | | $ | 319 | | $ | 329 | | $ | 320 | | $ | 316 | |
General and administrative expense - current presentation | | 308 | | 325 | | 310 | | 316 | |
Change | | $ | (11 | ) | $ | (4 | ) | $ | (10 | ) | $ | — | |
(1) | Reclass the provision for loan losses on bank loans and Experienced Advisor Recruit loans from general and administrative expense to net investment income and distribution expenses, respectively. |
41