Exhibit 99.2
Statistical Supplement Package
(unaudited)
Fourth Quarter 2012
Ameriprise Financial, Inc.
Statistical Supplement Information
Table of Contents
| Page |
Ameriprise Financial, Inc. | |
Statistical Supplement Presentation | 4 |
Consolidated GAAP Income Statements | 5 |
Consolidated Operating Results and Highlights | 6 |
Common Share and Capital Summary | 8 |
Segment Summary | 10 |
Advice & Wealth Management Segment | |
Segment Operating Income Statements | 12 |
Segment Metrics | 13 |
Asset Management Segment | |
Segment Operating Income Statements | 15 |
Segment Metrics | 16 |
Columbia Asset Management Products | 17 |
Threadneedle Asset Management Products | 18 |
Retail Fund Performance - Columbia | 19 |
Retail Fund Performance - Threadneedle | 20 |
Annuities Segment | |
Segment Operating Income Statements | 22 |
Segment Metrics | 23 |
Protection Segment | |
Segment Operating Income Statements | 25 |
Segment Metrics | 26 |
Corporate & Other Segment | |
Segment Operating Income Statements | 28 |
Eliminations | |
Operating Income Statements | 29 |
Balance Sheet and Ratings Information | |
Consolidated Balance Sheets | 31 |
Capital and Ratings Information | 32 |
Investments | 33 |
Non-GAAP Financial Information | 34 |
Glossary of Selected Terminology | |
Glossary of Selected Terminology - Segments | 35 |
Glossary of Selected Terminology | 36 |
Exhibit A | |
Disclosed Items | 38 |
Exhibit B | |
Non-GAAP Financial Measure Reconciliations | 44 |
2
Statistical Supplement Package
(unaudited)
Fourth Quarter 2012
Consolidated Results
3
Ameriprise Financial, Inc.
Statistical Supplement Presentation
Fourth Quarter 2012
Ameriprise Financial, Inc. (“Ameriprise Financial” or “the Company”) prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”). Management believes that operating measures, which exclude net realized gains or losses; the market impact on variable annuity guaranteed living benefits, net of hedges and the related deferred sales inducement costs (“DSIC”) and deferred acquisition costs (“DAC”) amortization; integration and restructuring charges; income (loss) from discontinued operations and the impact of consolidating certain investment entities (“CIEs”), best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis. The Company also uses a number of non-GAAP financial measures to evaluate its financial performance on a basis comparable to that used by some securities analysts and investors. However, these measures are not a substitute for GAAP. Therefore, reconciliations to GAAP measures are provided on page 6 and in Exhibit B “Non-GAAP Financial Measure Reconciliations” on pages 44 and 45.
The market impact on variable annuity guaranteed living benefits includes changes in liability values caused by changes in financial market conditions, net of changes in associated economic hedge values. The market impact also includes certain valuation adjustments made in accordance with Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value Measurements and Disclosures (“ASC 820”), including the impact on liability values of discounting projected benefits to reflect a current estimate of RiverSource Life Insurance Company’s nonperformance spread. Further, the market impact is net of related impacts on DAC and DSIC amortization. The market impact relates to guaranteed minimum accumulation benefits and non-life contingent guaranteed minimum withdrawal benefits accounted for at fair value as embedded derivatives.
Operating earnings is the measure of segment profit or loss management uses to evaluate segment performance. Operating earnings should not be viewed as a substitute for GAAP income from continuing operations before income tax provision. Management believes the presentation of segment operating earnings as we measure it for management purposes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitating a more meaningful trend analysis.
In addition, management uses adjusted net pretax operating margin in the Asset Management segment to evaluate segment performance on a basis comparable to other asset managers. In the Asset Management segment, operating revenues are adjusted to exclude distribution pass through revenues and subadvisory and other pass through revenues, and operating earnings are adjusted to exclude operating net investment income and amortization of intangibles.
4
Ameriprise Financial, Inc.
Consolidated GAAP Income Statements
Fourth Quarter 2012
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions, except per share amounts, unaudited) | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | | 2011 | | 2012 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | 1,101 | | $ | 1,132 | | $ | 1,152 | | $ | 1,191 | | $ | 1,217 | | $ | 4,537 | | $ | 4,692 | | $ | 116 | | 11 | % | $ | 155 | | 3 | % | $ | 26 | | 2 | % |
Distribution fees | | 371 | | 402 | | 396 | | 391 | | 427 | | 1,573 | | 1,616 | | 56 | | 15 | % | 43 | | 3 | % | 36 | | 9 | % |
Net investment income | | 588 | | 531 | | 472 | | 427 | | 503 | | 2,046 | | 1,933 | | (85 | ) | (14 | )% | (113 | ) | (6 | )% | 76 | | 18 | % |
Premiums | | 305 | | 301 | | 302 | | 309 | | 311 | | 1,220 | | 1,223 | | 6 | | 2 | % | 3 | | — | | 2 | | 1 | % |
Other revenues | | 228 | | 206 | | 202 | | 161 | | 226 | | 863 | | 795 | | (2 | ) | (1 | )% | (68 | ) | (8 | )% | 65 | | 40 | % |
Total revenues | | 2,593 | | 2,572 | | 2,524 | | 2,479 | | 2,684 | | 10,239 | | 10,259 | | 91 | | 4 | % | 20 | | — | | 205 | | 8 | % |
Banking and deposit interest expense | | 11 | | 11 | | 10 | | 11 | | 10 | | 47 | | 42 | | (1 | ) | (9 | )% | (5 | ) | (11 | )% | (1 | ) | (9 | )% |
Total net revenues | | 2,582 | | 2,561 | | 2,514 | | 2,468 | | 2,674 | | 10,192 | | 10,217 | | 92 | | 4 | % | 25 | | — | | 206 | | 8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | 625 | | 666 | | 663 | | 667 | | 702 | | 2,559 | | 2,698 | | 77 | | 12 | % | 139 | | 5 | % | 35 | | 5 | % |
Interest credited to fixed accounts | | 222 | | 206 | | 209 | | 207 | | 209 | | 856 | | 831 | | (13 | ) | (6 | )% | (25 | ) | (3 | )% | 2 | | 1 | % |
Benefits, claims, losses and settlement expenses | | 511 | | 492 | | 396 | | 529 | | 429 | | 1,557 | | 1,846 | | (82 | ) | (16 | )% | 289 | | 19 | % | (100 | ) | (19 | )% |
Amortization of deferred acquisition costs | | 31 | | 31 | | 99 | | 67 | | 89 | | 397 | | 286 | | 58 | | # | | (111 | ) | (28 | )% | 22 | | 33 | % |
Interest and debt expense | | 96 | | 69 | | 72 | | 68 | | 67 | | 317 | | 276 | | (29 | ) | (30 | )% | (41 | ) | (13 | )% | (1 | ) | (1 | )% |
General and administrative expense | | 771 | | 775 | | 776 | | 731 | | 760 | | 3,059 | | 3,042 | | (11 | ) | (1 | )% | (17 | ) | (1 | )% | 29 | | 4 | % |
Total expenses | | 2,256 | | 2,239 | | 2,215 | | 2,269 | | 2,256 | | 8,745 | | 8,979 | | — | | — | | 234 | | 3 | % | (13 | ) | (1 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations before income tax provision | | 326 | | 322 | | 299 | | 199 | | 418 | | 1,447 | | 1,238 | | 92 | | 28 | % | (209 | ) | (14 | )% | 219 | | # | |
Income tax provision | | 58 | | 73 | | 128 | | 47 | | 87 | | 377 | | 335 | | 29 | | 50 | % | (42 | ) | (11 | )% | 40 | | 85 | % |
Income from continuing operations | | 268 | | 249 | | 171 | | 152 | | 331 | | 1,070 | | 903 | | 63 | | 24 | % | (167 | ) | (16 | )% | 179 | | # | |
Income (loss) from discontinued operations, net of tax | | 13 | | (1 | ) | (1 | ) | (1 | ) | 1 | | (60 | ) | (2 | ) | (12 | ) | (92 | )% | 58 | | 97 | % | 2 | | # | |
Net income | | 281 | | 248 | | 170 | | 151 | | 332 | | 1,010 | | 901 | | 51 | | 18 | % | (109 | ) | (11 | )% | 181 | | # | |
Less: Net income (loss) attributable to noncontrolling interests | | 45 | | 4 | | (53 | ) | (22 | ) | (57 | ) | (106 | ) | (128 | ) | (102 | ) | # | | (22 | ) | (21 | )% | (35 | ) | # | |
Net income attributable to Ameriprise Financial | | $ | 236 | | $ | 244 | | $ | 223 | | $ | 173 | | $ | 389 | | $ | 1,116 | | $ | 1,029 | | $ | 153 | | 65 | % | $ | (87 | ) | (8 | )% | $ | 216 | | # | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment income on fixed maturities (6) | | $ | 466 | | $ | 457 | | $ | 454 | | $ | 442 | | $ | 415 | | $ | 1,917 | | $ | 1,768 | | $ | (51 | ) | (11 | )% | $ | (149 | ) | (8 | )% | $ | (27 | ) | (6 | )% |
Realized gains (losses) | | 1 | | (2 | ) | (5 | ) | (68 | ) | 82 | | 6 | | 7 | | 81 | | # | | 1 | | 17 | % | 150 | | # | |
Affordable housing | | (8 | ) | (8 | ) | (4 | ) | (5 | ) | (8 | ) | (32 | ) | (25 | ) | — | | — | | 7 | | 22 | % | (3 | ) | (60 | )% |
Other (including seed money) (6) | | 17 | | 23 | | 13 | | 15 | | 22 | | 64 | | 73 | | 5 | | 29 | % | 9 | | 14 | % | 7 | | 47 | % |
Consolidated investment entities | | 112 | | 61 | | 14 | | 43 | | (8 | ) | 91 | | 110 | | (120 | ) | # | | 19 | | 21 | % | (51 | ) | # | |
Total net investment income | | $ | 588 | | $ | 531 | | $ | 472 | | $ | 427 | | $ | 503 | | $ | 2,046 | | $ | 1,933 | | $ | (85 | ) | (14 | )% | $ | (113 | ) | (6 | )% | $ | 76 | | 18 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings Per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.97 | | $ | 1.08 | | $ | 1.01 | | $ | 0.81 | | $ | 1.84 | | $ | 4.87 | | $ | 4.71 | | $ | 0.87 | | 90 | % | $ | (0.16 | ) | (3 | )% | $ | 1.03 | | # | |
Income (loss) from discontinued operations | | 0.06 | | (0.01 | ) | — | | (0.01 | ) | 0.01 | | (0.25 | ) | (0.01 | ) | (0.05 | ) | (83 | )% | 0.24 | | 96 | % | 0.02 | | # | |
Net income | | $ | 1.03 | | $ | 1.07 | | $ | 1.01 | | $ | 0.80 | | $ | 1.85 | | $ | 4.62 | | $ | 4.70 | | $ | 0.82 | | 80 | % | $ | 0.08 | | 2 | % | $ | 1.05 | | # | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.95 | | $ | 1.06 | | $ | 0.99 | | $ | 0.79 | | $ | 1.80 | | $ | 4.77 | | $ | 4.63 | | $ | 0.85 | | 89 | % | $ | (0.14 | ) | (3 | )% | $ | 1.01 | | # | |
Income (loss) from discontinued operations | | 0.06 | | (0.01 | ) | — | | — | | 0.01 | | (0.24 | ) | (0.01 | ) | (0.05 | ) | (83 | )% | 0.23 | | 96 | % | 0.01 | | — | |
Net income | | $ | 1.01 | | $ | 1.05 | | $ | 0.99 | | $ | 0.79 | | $ | 1.81 | | $ | 4.53 | | $ | 4.62 | | $ | 0.80 | | 79 | % | $ | 0.09 | | 2 | % | $ | 1.02 | | # | |
Earnings per diluted share growth (from continuing operations) | | (15.2 | )% | (12.4 | )% | (22.0 | )% | (40.6 | )% | 89.5 | % | 23.6 | % | (2.9 | )% | 104.7 | % | | | (26.5 | )% | | | 130.1 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average common shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic weighted average common shares outstanding | | 230.6 | | 227.3 | | 221.7 | | 215.0 | | 210.8 | | 241.4 | | 218.7 | | (19.8 | ) | (9 | )% | (22.7 | ) | (9 | )% | (4.2 | ) | (2 | )% |
Effect of potentially dilutive nonqualified stock options and other share-based awards | | 3.9 | | 4.4 | | 3.9 | | 4.1 | | 4.3 | | 4.9 | | 4.1 | | 0.4 | | 10 | % | (0.8 | ) | (16 | )% | 0.2 | | 5 | % |
Diluted weighted average common shares outstanding | | 234.5 | | 231.7 | | 225.6 | | 219.1 | | 215.1 | | 246.3 | | 222.8 | | (19.4 | ) | (8 | )% | (23.5 | ) | (10 | )% | (4.0 | ) | (2 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenue growth | | 0.9 | % | 1.1 | % | (4.2 | )% | 0.5 | % | 3.6 | % | 7.1 | % | 0.2 | % | 2.7 | % | | | (6.9 | )% | | | 3.1 | % | | |
Pretax income margin (1) | | 12.6 | % | 12.6 | % | 11.9 | % | 8.1 | % | 15.6 | % | 14.2 | % | 12.1 | % | 3.0 | % | | | (2.1 | )% | | | 7.5 | % | | |
Effective tax rate (5) | | 17.9 | % | 22.6 | % | 42.8 | % | 23.8 | % | 20.8 | % | 26.1 | % | 27.1 | % | 2.9 | % | | | 1.0 | % | | | (3.0 | )% | | |
Effective tax rate excluding noncontrolling interests (2)(5) | | 20.7 | % | 22.9 | % | 36.4 | % | 21.4 | % | 18.3 | % | 24.3 | % | 24.5 | % | (2.4 | )% | | | — | | | | (3.1 | )% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ameriprise Financial shareholders’ equity / outstanding shares (3) | | $ | 39.49 | | $ | 40.58 | | $ | 41.33 | | $ | 43.05 | | $ | 43.44 | | $ | 39.49 | | $ | 43.44 | | $ | 3.95 | | 10 | % | $ | 3.95 | | 10 | % | $ | 0.39 | | 1 | % |
Ameriprise Financial shareholders’ equity excluding AOCI / outstanding shares (2)(4) | | $ | 36.19 | | $ | 36.79 | | $ | 37.00 | | $ | 37.09 | | $ | 37.74 | | $ | 36.19 | | $ | 37.74 | | $ | 1.55 | | 4 | % | $ | 1.55 | | 4 | % | $ | 0.65 | | 2 | % |
(1) Calculated as income from continuing operations before income tax provision divided by total net revenues.
(2) See non-GAAP financial information on pg 34. Non-GAAP financial measure reconciliations can be found on pages 44 and 45.
(3) Calculated as Ameriprise Financial shareholders’ equity divided by common shares outstanding plus common stock equivalents outstanding at period end.
(4) Calculated as Ameriprise Financial shareholders’ equity excluding AOCI divided by common shares outstanding plus common stock equivalents outstanding at period end.
(5) Q2 2012 includes a tax-related item related to incomplete data received from a third party service provider for securities lending activities in prior periods.
(6) In the fourth quarter of 2012, income associated with consumer loans that were reclassified from Receivables to Investments was reclassified from Other to Investment income on fixed maturities. All prior periods have been restated.
# Variance of greater than 100%.
5
Ameriprise Financial, Inc.
Consolidated Operating Results and Highlights
Fourth Quarter 2012
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions except per share amounts, unaudited) | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | | 2011 | | 2012 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total net revenues | | $ | 2,582 | | $ | 2,561 | | $ | 2,514 | | $ | 2,468 | | $ | 2,674 | | $ | 10,192 | | $ | 10,217 | | $ | 92 | | 4 | % | $ | 25 | | — | | $ | 206 | | 8 | % |
Less revenues attributable to the CIEs | | 126 | | 52 | | 1 | | 27 | | (9 | ) | 136 | | 71 | | (135 | ) | # | | (65 | ) | (48 | )% | (36 | ) | # | |
Less realized gains (losses) | | 1 | | (2 | ) | (5 | ) | (68 | ) | 82 | | 6 | | 7 | | 81 | | # | | 1 | | 17 | % | 150 | | # | |
Less integration/restructuring charges | | — | | — | | — | | (8 | ) | 4 | | — | | (4 | ) | 4 | | — | | (4 | ) | — | | 12 | | # | |
Operating total net revenues (1) | | $ | 2,455 | | $ | 2,511 | | $ | 2,518 | | $ | 2,517 | | $ | 2,597 | | $ | 10,050 | | $ | 10,143 | | $ | 142 | | 6 | % | $ | 93 | | 1 | % | $ | 80 | | 3 | % |
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Earnings | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income attributable to Ameriprise Financial | | $ | 236 | | $ | 244 | | $ | 223 | | $ | 173 | | $ | 389 | | $ | 1,116 | | $ | 1,029 | | $ | 153 | | 65 | % | $ | (87 | ) | (8 | )% | $ | 216 | | # | |
Less income (loss) from discontinued operations, net of tax | | 13 | | (1 | ) | (1 | ) | (1 | ) | 1 | | (60 | ) | (2 | ) | (12 | ) | (92 | )% | 58 | | 97 | % | 2 | | # | |
Net income from continuing operations attributable to Ameriprise Financial | | 223 | | 245 | | 224 | | 174 | | 388 | | 1,176 | | 1,031 | | 165 | | 74 | % | (145 | ) | (12 | )% | 214 | | # | |
Integration/restructuring charges, net of tax (2) | | 14 | | 15 | | 17 | | 11 | | 3 | | 62 | | 46 | | (11 | ) | (79 | )% | (16 | ) | (26 | )% | (8 | ) | (73 | )% |
Market impact on variable annuity guaranteed living benefits, net of tax (2) | | 72 | | 74 | | 9 | | 60 | | 30 | | 40 | | 173 | | (42 | ) | (58 | )% | 133 | | # | | (30 | ) | (50 | )% |
Less realized gains (losses), net of tax (2) | | 1 | | (1 | ) | (4 | ) | (44 | ) | 54 | | 4 | | 5 | | 53 | | # | | 1 | | 25 | % | 98 | | # | |
Operating earnings (1) | | $ | 308 | | $ | 335 | | $ | 254 | | $ | 289 | | $ | 367 | | $ | 1,274 | | $ | 1,245 | | $ | 59 | | 19 | % | $ | (29 | ) | (2 | )% | $ | 78 | | 27 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax Earnings | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations before income tax provision | | $ | 326 | | $ | 322 | | $ | 299 | | $ | 199 | | $ | 418 | | $ | 1,447 | | $ | 1,238 | | $ | 92 | | 28 | % | $ | (209 | ) | (14 | )% | $ | 219 | | # | |
Less net income (loss) attributable to noncontrolling interests | | 45 | | 4 | | (53 | ) | (22 | ) | (57 | ) | (106 | ) | (128 | ) | (102 | ) | # | | (22 | ) | (21 | )% | (35 | ) | # | |
Pretax earnings excluding CIEs | | 281 | | 318 | | 352 | | 221 | | 475 | | 1,553 | | 1,366 | | 194 | | 69 | % | (187 | ) | (12 | )% | 254 | | # | |
Integration/restructuring charges | | 21 | | 23 | | 26 | | 17 | | 5 | | 95 | | 71 | | (16 | ) | (76 | )% | (24 | ) | (25 | )% | (12 | ) | (71 | )% |
Market impact on variable annuity guaranteed living benefits | | 111 | | 113 | | 16 | | 91 | | 45 | | 62 | | 265 | | (66 | ) | (59 | )% | 203 | | # | | (46 | ) | (51 | )% |
Less realized gains (losses) | | 1 | | (2 | ) | (5 | ) | (68 | ) | 82 | | 6 | | 7 | | 81 | | # | | 1 | | 17 | % | 150 | | # | |
Pretax operating earnings (1) | | $ | 412 | | $ | 456 | | $ | 399 | | $ | 397 | | $ | 443 | | $ | 1,704 | | $ | 1,695 | | $ | 31 | | 8 | % | $ | (9 | ) | (1 | )% | $ | 46 | | 12 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax Operating Margin (1)(3) | | 16.8 | % | 18.2 | % | 15.8 | % | 15.8 | % | 17.1 | % | 17.0 | % | 16.7 | % | 0.3 | % | | | (0.3 | )% | | | 1.3 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating Effective Tax Rate (1)(4)(5) | | 25.2 | % | 26.5 | % | 36.3 | % | 27.2 | % | 17.2 | % | 25.2 | % | 26.5 | % | (8.0 | )% | | | 1.3 | % | | | (10.0 | )% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average Common Shares Outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | 230.6 | | 227.3 | | 221.7 | | 215.0 | | 210.8 | | 241.4 | | 218.7 | | (19.8 | ) | (9 | )% | (22.7 | ) | (9 | )% | (4.2 | ) | (2 | )% |
Diluted | | 234.5 | | 231.7 | | 225.6 | | 219.1 | | 215.1 | | 246.3 | | 222.8 | | (19.4 | ) | (8 | )% | (23.5 | ) | (10 | )% | (4.0 | ) | (2 | )% |
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Operating Earnings Per Share (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic operating earnings per share | | $ | 1.34 | | $ | 1.47 | | $ | 1.15 | | $ | 1.34 | | $ | 1.74 | | $ | 5.28 | | $ | 5.69 | | $ | 0.40 | | 30 | % | $ | 0.41 | | 8 | % | $ | 0.40 | | 30 | % |
Operating earnings per diluted share | | $ | 1.31 | | $ | 1.45 | | $ | 1.13 | | $ | 1.32 | | $ | 1.71 | | $ | 5.17 | | $ | 5.59 | | $ | 0.40 | | 31 | % | $ | 0.42 | | 8 | % | $ | 0.39 | | 30 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on equity excluding AOCI (1)(4) | | 13.9 | % | 13.3 | % | 12.3 | % | 10.7 | % | 12.8 | % | 13.9 | % | 12.8 | % | (1.1 | )% | | | (1.1 | )% | | | 2.1 | % | | |
Operating return on equity excluding AOCI (1)(4) | | 16.0 | % | 16.0 | % | 15.2 | % | 15.4 | % | 16.2 | % | 16.0 | % | 16.2 | % | 0.2 | % | | | 0.2 | % | | | 0.8 | % | | |
(1) See non-GAAP financial information on pg 34.
(2) Calculated using the statutory tax rate of 35%.
(3) Defined as pretax operating earnings as a percentage of operating total net revenues.
(4) Non-GAAP financial measure reconciliations can be found on pg 44.
(5) Q2 2012 includes a tax-related item related to incomplete data received from a third party service provider for securities lending activities in prior periods.
# Variance of greater than 100%.
6
Ameriprise Financial, Inc.
Consolidated Operating Results and Highlights
Fourth Quarter 2012
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions except per share amounts, headcount and where noted, unaudited) | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | | 2011 | | 2012 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book Value | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ameriprise Financial shareholders’ equity excluding CIEs / outstanding shares (1)(2) | | $ | 37.72 | | $ | 38.74 | | $ | 39.63 | | $ | 41.34 | | $ | 41.95 | | $ | 37.72 | | $ | 41.95 | | $ | 4.23 | | 11 | % | $ | 4.23 | | 11 | % | $ | 0.61 | | 1 | % |
Ameriprise Financial shareholders’ equity excluding CIEs and AOCI / outstanding shares (1)(3) | | $ | 34.31 | | $ | 34.84 | | $ | 35.20 | | $ | 35.26 | | $ | 36.13 | | $ | 34.31 | | $ | 36.13 | | $ | 1.82 | | 5 | % | $ | 1.82 | | 5 | % | $ | 0.87 | | 2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating total net revenue growth: Target 6 - 8% | | (2.3 | )% | 0.7 | % | (2.9 | )% | 0.3 | % | 5.8 | % | 10.2 | % | 0.9 | % | 8.1 | % | | | (9.3 | )% | | | 5.5 | % | | |
Operating earnings per diluted share growth: Target 12 - 15% | | 3.1 | % | 9.0 | % | (15.0 | )% | 10.9 | % | 30.5 | % | 26.1 | % | 8.1 | % | 27.4 | % | | | (18.0 | )% | | | 19.6 | % | | |
Operating return on equity excluding AOCI: Target 15 - 18% (1) | | 16.0 | % | 16.0 | % | 15.2 | % | 15.4 | % | 16.2 | % | 16.0 | % | 16.2 | % | 0.2 | % | | | 0.2 | % | | | 0.8 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Debt to Capital | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital | | 21.0 | % | 20.7 | % | 21.1 | % | 20.9 | % | 20.9 | % | 21.0 | % | 20.9 | % | (0.1 | )% | | | (0.1 | )% | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill and Intangible Assets | | $ | 2,143 | | $ | 2,144 | | $ | 2,125 | | $ | 2,125 | | $ | 2,113 | | $ | 2,143 | | $ | 2,113 | | $ | (30 | ) | (1 | )% | $ | (30 | ) | (1 | )% | $ | (12 | ) | (1 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets Under Management and Administration (4) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advice & Wealth Management AUM | | $ | 104,683 | | $ | 114,432 | | $ | 114,690 | | $ | 121,675 | | $ | 125,014 | | $ | 104,683 | | $ | 125,014 | | $ | 20,331 | | 19 | % | $ | 20,331 | | 19 | % | $ | 3,339 | | 3 | % |
Asset Management AUM | | 435,503 | | 463,041 | | 445,804 | | 460,856 | | 455,441 | | 435,503 | | 455,441 | | 19,938 | | 5 | % | 19,938 | | 5 | % | (5,415 | ) | (1 | )% |
Corporate AUM | | 23 | | 23 | | 25 | | 26 | | 26 | | 23 | | 26 | | 3 | | 13 | % | 3 | | 13 | % | — | | — | |
Eliminations | | (12,640 | ) | (13,973 | ) | (16,945 | ) | (18,080 | ) | (18,117 | ) | (12,640 | ) | (18,117 | ) | (5,477 | ) | (43 | )% | (5,477 | ) | (43 | )% | (37 | ) | — | |
Total Assets Under Management | | 527,569 | | 563,523 | | 543,574 | | 564,477 | | 562,364 | | 527,569 | | 562,364 | | 34,795 | | 7 | % | 34,795 | | 7 | % | (2,113 | ) | — | |
Total Assets Under Administration | | 103,753 | | 111,361 | | 111,177 | | 113,986 | | 118,673 | | 103,753 | | 118,673 | | 14,920 | | 14 | % | 14,920 | | 14 | % | 4,687 | | 4 | % |
Total AUM and AUA | | $ | 631,322 | | $ | 674,884 | | $ | 654,751 | | $ | 678,463 | | $ | 681,037 | | $ | 631,322 | | $ | 681,037 | | $ | 49,715 | | 8 | % | $ | 49,715 | | 8 | % | $ | 2,574 | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Business Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Ameriprise client assets | | $ | 309,864 | | $ | 334,086 | | $ | 330,847 | | $ | 344,857 | | $ | 352,751 | | $ | 309,864 | | $ | 352,751 | | $ | 42,887 | | 14 | % | $ | 42,887 | | 14 | % | $ | 7,894 | | 2 | % |
Total branded financial advisors | | 9,730 | | 9,744 | | 9,803 | | 9,815 | | 9,767 | | 9,730 | | 9,767 | | 37 | | — | | 37 | | — | | (48 | ) | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Flows and Net Deposits | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Branded advisor wrap | | $ | 1,350 | | $ | 2,887 | | $ | 2,634 | | $ | 2,062 | | $ | 2,062 | | $ | 7,265 | | $ | 9,645 | | $ | 712 | | 53 | % | $ | 2,380 | | 33 | % | $ | — | | — | |
Asset Management | | 3,790 | | (4,602 | ) | (6,648 | ) | (3,475 | ) | (3,945 | ) | (6,902 | ) | (18,670 | ) | (7,735 | ) | # | | (11,768 | ) | # | | (470 | ) | (14 | )% |
Annuities | | 69 | | (101 | ) | (324 | ) | (396 | ) | (517 | ) | (105 | ) | (1,338 | ) | (586 | ) | # | | (1,233 | ) | # | | (121 | ) | (31 | )% |
Variable universal life / Universal life | | (38 | ) | (52 | ) | (50 | ) | (49 | ) | (27 | ) | (197 | ) | (178 | ) | 11 | | 29 | % | 19 | | 10 | % | 22 | | 45 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
S&P 500 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Daily average | | 1,225 | | 1,346 | | 1,350 | | 1,402 | | 1,417 | | 1,268 | | 1,379 | | 192 | | 16 | % | 111 | | 9 | % | 15 | | 1 | % |
Period end | | 1,258 | | 1,408 | | 1,362 | | 1,441 | | 1,426 | | 1,258 | | 1,426 | | 168 | | 13 | % | 168 | | 13 | % | (15 | ) | (1 | )% |
(1) See non-GAAP financial information on pg 34. Non-GAAP financial measure reconciliations can be found on pages 44 and 45.
(2) Calculated as Ameriprise Financial shareholders’ equity excluding CIEs divided by common shares outstanding plus common stock equivalents outstanding at period end.
(3) Calculated as Ameriprise Financial shareholders’ equity excluding CIEs and AOCI divided by common shares outstanding plus common stock equivalents outstanding at period end.
(4) Excludes discontinued operations.
# Variance of greater than 100%.
7
Ameriprise Financial, Inc.
Common Share and Capital Summary
Fourth Quarter 2012
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | | 2011 | | 2012 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common shares | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | 227.2 | | 221.9 | | 219.6 | | 212.7 | | 207.4 | | 246.7 | | 221.9 | | (19.8 | ) | (9 | )% | (24.8 | ) | (10 | )% | (5.3 | ) | (2 | )% |
Repurchases | | (5.5 | ) | (5.4 | ) | (7.0 | ) | (6.3 | ) | (5.9 | ) | (27.9 | ) | (24.6 | ) | (0.4 | ) | (7 | )% | 3.3 | | 12 | % | 0.4 | | 6 | % |
Issuances | | 0.5 | | 3.4 | | 0.1 | | 1.1 | | 2.7 | | 4.0 | | 7.3 | | 2.2 | | # | | 3.3 | | 83 | % | 1.6 | | # | |
Other | | (0.3 | ) | (0.3 | ) | — | | (0.1 | ) | (0.3 | ) | (0.9 | ) | (0.7 | ) | — | | — | | 0.2 | | 22 | % | (0.2 | ) | # | |
Total common shares outstanding | | 221.9 | | 219.6 | | 212.7 | | 207.4 | | 203.9 | | 221.9 | | 203.9 | | (18.0 | ) | (8 | )% | (18.0 | ) | (8 | )% | (3.5 | ) | (2 | )% |
Nonforfeitable restricted stock units | | 5.7 | | 5.0 | | 5.2 | | 5.3 | | 5.4 | | 5.7 | | 5.4 | | (0.3 | ) | (5 | )% | (0.3 | ) | (5 | )% | 0.1 | | 2 | % |
Total basic common shares outstanding | | 227.6 | | 224.6 | | 217.9 | | 212.7 | | 209.3 | | 227.6 | | 209.3 | | (18.3 | ) | (8 | )% | (18.3 | ) | (8 | )% | (3.4 | ) | (2 | )% |
Total potentially dilutive shares | | 4.2 | | 4.5 | | 3.7 | | 4.1 | | 4.0 | | 4.2 | | 4.0 | | (0.2 | ) | (5 | )% | (0.2 | ) | (5 | )% | (0.1 | ) | (2 | )% |
Total diluted shares | | 231.8 | | 229.1 | | 221.6 | | 216.8 | | 213.3 | | 231.8 | | 213.3 | | (18.5 | ) | (8 | )% | (18.5 | ) | (8 | )% | (3.5 | ) | (2 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capital Returned to Shareholders | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends paid | | $ | 54 | | $ | 64 | | $ | 78 | | $ | 76 | | $ | 96 | | $ | 212 | | $ | 314 | | $ | 42 | | 78 | % | $ | 102 | | 48 | % | $ | 20 | | 26 | % |
Common stock share repurchases | | $ | 248 | | $ | 300 | | $ | 350 | | $ | 340 | | $ | 350 | | $ | 1,456 | | $ | 1,340 | | $ | 102 | | 41 | % | $ | (116 | ) | (8 | )% | $ | 10 | | 3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated Equity (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advice & Wealth Management | | $ | 790 | | $ | 799 | | $ | 814 | | $ | 772 | | $ | 444 | | $ | 790 | | $ | 444 | | $ | (346 | ) | (44 | )% | $ | (346 | ) | (44 | )% | $ | (328 | ) | (42 | )% |
Asset Management | | 1,922 | | 1,913 | | 1,933 | | 1,914 | | 1,913 | | 1,922 | | 1,913 | | (9 | ) | — | | (9 | ) | — | | (1 | ) | — | |
Annuities | | 1,931 | | 1,651 | | 1,537 | | 1,507 | | 1,630 | | 1,931 | | 1,630 | | (301 | ) | (16 | )% | (301 | ) | (16 | )% | 123 | | 8 | % |
Protection | | 1,710 | | 1,716 | | 1,703 | | 1,676 | | 1,693 | | 1,710 | | 1,693 | | (17 | ) | (1 | )% | (17 | ) | (1 | )% | 17 | | 1 | % |
Corporate & Other | | 1,456 | | 1,745 | | 1,682 | | 1,631 | | 1,882 | | 1,456 | | 1,882 | | 426 | | 29 | % | 426 | | 29 | % | 251 | | 15 | % |
Total allocated equity | | $ | 7,809 | | $ | 7,824 | | $ | 7,669 | | $ | 7,500 | | $ | 7,562 | | $ | 7,809 | | $ | 7,562 | | $ | (247 | ) | (3 | )% | $ | (247 | ) | (3 | )% | $ | 62 | | 1 | % |
(1) Allocated equity equals Ameriprise Financial shareholders’ equity excluding consolidated investment entities less AOCI. Allocated equity is not adjusted for non-operating items except for CIEs.
# Variance of greater than 100%.
8
Statistical Supplement Package
(unaudited)
Fourth Quarter 2012
Segment Results
9
Ameriprise Financial, Inc.
Segment Summary
Fourth Quarter 2012
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | | 2011 | | 2012 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Segment Summary | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advice & Wealth Management | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating total net revenues | | $ | 905 | | $ | 954 | | $ | 953 | | $ | 961 | | $ | 1,005 | | $ | 3,713 | | $ | 3,873 | | $ | 100 | | 11 | % | $ | 160 | | 4 | % | $ | 44 | | 5 | % |
Operating expenses | | 822 | | 860 | | 842 | | 842 | | 886 | | 3,307 | | 3,430 | | 64 | | 8 | % | 123 | | 4 | % | 44 | | 5 | % |
Pretax operating earnings | | $ | 83 | | $ | 94 | | $ | 111 | | $ | 119 | | $ | 119 | | $ | 406 | | $ | 443 | | $ | 36 | | 43 | % | $ | 37 | | 9 | % | $ | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated equity | | $ | 790 | | $ | 799 | | $ | 814 | | $ | 772 | | $ | 444 | | $ | 790 | | $ | 444 | | $ | (346 | ) | (44 | )% | $ | (346 | ) | (44 | )% | $ | (328 | ) | (42 | )% |
Operating return on allocated equity (2) | | 40.1 | % | 38.5 | % | 36.7 | % | 36.5 | % | 44.9 | % | 40.1 | % | 44.9 | % | 4.8 | % | | | 4.8 | % | | | 8.4 | % | | |
Pretax operating margin | | 9.2 | % | 9.9 | % | 11.6 | % | 12.4 | % | 11.8 | % | 10.9 | % | 11.4 | % | 2.6 | % | | | 0.5 | % | | | (0.6 | )% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Asset Management | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating total net revenues | | $ | 702 | | $ | 711 | | $ | 707 | | $ | 733 | | $ | 740 | | $ | 2,897 | | $ | 2,891 | | $ | 38 | | 5 | % | $ | (6 | ) | — | | $ | 7 | | 1 | % |
Operating expenses | | 575 | | 580 | | 577 | | 578 | | 599 | | 2,369 | | 2,334 | | 24 | | 4 | % | (35 | ) | (1 | )% | 21 | | 4 | % |
Pretax operating earnings | | $ | 127 | | $ | 131 | | $ | 130 | | $ | 155 | | $ | 141 | | $ | 528 | | $ | 557 | | $ | 14 | | 11 | % | $ | 29 | | 5 | % | $ | (14 | ) | (9 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated equity | | $ | 1,922 | | $ | 1,913 | | $ | 1,933 | | $ | 1,914 | | $ | 1,913 | | $ | 1,922 | | $ | 1,913 | | $ | (9 | ) | — | | $ | (9 | ) | — | | $ | (1 | ) | — | |
Operating return on allocated equity (2) | | 20.4 | % | 20.1 | % | 18.9 | % | 20.1 | % | 21.3 | % | 20.4 | % | 21.3 | % | 0.9 | % | | | 0.9 | % | | | 1.2 | % | | |
Pretax operating margin | | 18.1 | % | 18.4 | % | 18.4 | % | 21.1 | % | 19.1 | % | 18.2 | % | 19.3 | % | 1.0 | % | | | 1.1 | % | | | (2.0 | )% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating total net revenues | | $ | 702 | | $ | 711 | | $ | 707 | | $ | 733 | | $ | 740 | | $ | 2,897 | | $ | 2,891 | | $ | 38 | | 5 | % | $ | (6 | ) | — | | $ | 7 | | 1 | % |
Distribution pass thru revenues | | (201 | ) | (207 | ) | (203 | ) | (203 | ) | (209 | ) | (833 | ) | (822 | ) | (8 | ) | (4 | )% | 11 | | 1 | % | (6 | ) | (3 | )% |
Subadvisory and other pass thru revenues | | (100 | ) | (96 | ) | (95 | ) | (105 | ) | (103 | ) | (385 | ) | (399 | ) | (3 | ) | (3 | )% | (14 | ) | (4 | )% | 2 | | 2 | % |
Adjusted operating revenues (1) | | $ | 401 | | $ | 408 | | $ | 409 | | $ | 425 | | $ | 428 | | $ | 1,679 | | $ | 1,670 | | $ | 27 | | 7 | % | $ | (9 | ) | (1 | )% | $ | 3 | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax operating earnings | | $ | 127 | | $ | 131 | | $ | 130 | | $ | 155 | | $ | 141 | | $ | 528 | | $ | 557 | | $ | 14 | | 11 | % | $ | 29 | | 5 | % | $ | (14 | ) | (9 | )% |
Operating net investment income | | (11 | ) | (5 | ) | (2 | ) | (5 | ) | (7 | ) | (11 | ) | (19 | ) | 4 | | 36 | % | (8 | ) | (73 | )% | (2 | ) | (40 | )% |
Amortization of intangibles | | 10 | | 10 | | 10 | | 10 | | 10 | | 40 | | 40 | | — | | — | | — | | — | | — | | — | |
Adjusted operating earnings (1) | | $ | 126 | | $ | 136 | | $ | 138 | | $ | 160 | | $ | 144 | | $ | 557 | | $ | 578 | | $ | 18 | | 14 | % | $ | 21 | | 4 | % | $ | (16 | ) | (10 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted net pretax operating margin (1)(3) | | 31.4 | % | 33.3 | % | 33.7 | % | 37.6 | % | 33.6 | % | 33.2 | % | 34.6 | % | 2.2 | % | | | 1.4 | % | | | (4.0 | )% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Annuities | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating total net revenues | | $ | 634 | | $ | 628 | | $ | 628 | | $ | 632 | | $ | 636 | | $ | 2,630 | | $ | 2,524 | | $ | 2 | | — | | $ | (106 | ) | (4 | )% | $ | 4 | | 1 | % |
Operating expenses | | 470 | | 439 | | 512 | | 541 | | 465 | | 2,005 | | 1,957 | | (5 | ) | (1 | )% | (48 | ) | (2 | )% | (76 | ) | (14 | )% |
Pretax operating earnings | | $ | 164 | | $ | 189 | | $ | 116 | | $ | 91 | | $ | 171 | | $ | 625 | | $ | 567 | | $ | 7 | | 4 | % | $ | (58 | ) | (9 | )% | $ | 80 | | 88 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated equity | | $ | 1,931 | | $ | 1,651 | | $ | 1,537 | | $ | 1,507 | | $ | 1,630 | | $ | 1,931 | | $ | 1,630 | | $ | (301 | ) | (16 | )% | $ | (301 | ) | (16 | )% | $ | 123 | | 8 | % |
Operating return on allocated equity (2) | | 23.3 | % | 24.1 | % | 23.1 | % | 22.5 | % | 25.5 | % | 23.3 | % | 25.5 | % | 2.2 | % | | | 2.2 | % | | | 3.0 | % | | |
Pretax operating margin | | 25.9 | % | 30.1 | % | 18.5 | % | 14.4 | % | 26.9 | % | 23.8 | % | 22.5 | % | 1.0 | % | | | (1.3 | )% | | | 12.5 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Protection | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating total net revenues | | $ | 529 | | $ | 522 | | $ | 528 | | $ | 496 | | $ | 542 | | $ | 2,069 | | $ | 2,088 | | $ | 13 | | 2 | % | $ | 19 | | 1 | % | $ | 46 | | 9 | % |
Operating expenses | | 416 | | 415 | | 419 | | 407 | | 449 | | 1,683 | | 1,690 | | 33 | | 8 | % | 7 | | — | | 42 | | 10 | % |
Pretax operating earnings | | $ | 113 | | $ | 107 | | $ | 109 | | $ | 89 | | $ | 93 | | $ | 386 | | $ | 398 | | $ | (20 | ) | (18 | )% | $ | 12 | | 3 | % | $ | 4 | | 4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated equity | | $ | 1,710 | | $ | 1,716 | | $ | 1,703 | | $ | 1,676 | | $ | 1,693 | | $ | 1,710 | | $ | 1,693 | | $ | (17 | ) | (1 | )% | $ | (17 | ) | (1 | )% | $ | 17 | | 1 | % |
Operating return on allocated equity (2) | | 15.7 | % | 15.8 | % | 16.4 | % | 17.5 | % | 17.1 | % | 15.7 | % | 17.1 | % | 1.4 | % | | | 1.4 | % | | | (0.4 | )% | | |
Pretax operating margin | | 21.4 | % | 20.5 | % | 20.6 | % | 17.9 | % | 17.2 | % | 18.7 | % | 19.1 | % | (4.2 | )% | | | 0.4 | % | | | (0.7 | )% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate & Other | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating total net revenues | | $ | (6 | ) | $ | 8 | | $ | 7 | | $ | 5 | | $ | — | | $ | 3 | | $ | 20 | | $ | 6 | | # | | $ | 17 | | # | | $ | (5 | ) | # | |
Operating expenses | | 69 | | 73 | | 74 | | 62 | | 81 | | 244 | | 290 | | 12 | | 17 | % | 46 | | 19 | % | 19 | | 31 | % |
Pretax operating loss | | $ | (75 | ) | $ | (65 | ) | $ | (67 | ) | $ | (57 | ) | $ | (81 | ) | $ | (241 | ) | $ | (270 | ) | $ | (6 | ) | (8 | )% | $ | (29 | ) | (12 | )% | $ | (24 | ) | (42 | )% |
(1) See non-GAAP financial information on pg 34.
(2) Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.
(3) Calculated as adjusted operating earnings as a percentage of adjusted operating revenues.
# Variance of greater than 100%.
10
Statistical Supplement Package
(unaudited)
Fourth Quarter 2012
Advice & Wealth Management Segment
11
Ameriprise Financial, Inc.
Advice & Wealth Management Segment
Fourth Quarter 2012
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | | 2011 | | 2012 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income Statements | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | 395 | | $ | 412 | | $ | 430 | | $ | 438 | | $ | 457 | | $ | 1,590 | | $ | 1,737 | | $ | 62 | | 16 | % | $ | 147 | | 9 | % | $ | 19 | | 4 | % |
Distribution fees | | 443 | | 471 | | 454 | | 452 | | 502 | | 1,849 | | 1,879 | | 59 | | 13 | % | 30 | | 2 | % | 50 | | 11 | % |
Net investment income | | 64 | | 64 | | 64 | | 63 | | 42 | | 261 | | 233 | | (22 | ) | (34 | )% | (28 | ) | (11 | )% | (21 | ) | (33 | )% |
Premiums | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Other revenues | | 15 | | 18 | | 15 | | 18 | | 13 | | 61 | | 64 | | (2 | ) | (13 | )% | 3 | | 5 | % | (5 | ) | (28 | )% |
Total revenues | | 917 | | 965 | | 963 | | 971 | | 1,014 | | 3,761 | | 3,913 | | 97 | | 11 | % | 152 | | 4 | % | 43 | | 4 | % |
Banking and deposit interest expense | | 12 | | 11 | | 10 | | 10 | | 9 | | 48 | | 40 | | (3 | ) | (25 | )% | (8 | ) | (17 | )% | (1 | ) | (10 | )% |
Operating total net revenues | | 905 | | 954 | | 953 | | 961 | | 1,005 | | 3,713 | | 3,873 | | 100 | | 11 | % | 160 | | 4 | % | 44 | | 5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | 541 | | 574 | | 565 | | 572 | | 613 | | 2,203 | | 2,324 | | 72 | | 13 | % | 121 | | 5 | % | 41 | | 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 | | 281 | | 286 | | 277 | | 270 | | 273 | | 1,104 | | 1,106 | | (8 | ) | (3 | )% | 2 | | — | | 3 | | 1 | % |
Operating expenses | | 822 | | 860 | | 842 | | 842 | | 886 | | 3,307 | | 3,430 | | 64 | | 8 | % | 123 | | 4 | % | 44 | | 5 | % |
Pretax operating earnings | | $ | 83 | | $ | 94 | | $ | 111 | | $ | 119 | | $ | 119 | | $ | 406 | | $ | 443 | | $ | 36 | | 43 | % | $ | 37 | | 9 | % | $ | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax operating margin | | 9.2 | % | 9.9 | % | 11.6 | % | 12.4 | % | 11.8 | % | 10.9 | % | 11.4 | % | 2.6 | % | | | 0.5 | % | | | (0.6 | )% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated equity | | $ | 790 | | $ | 799 | | $ | 814 | | $ | 772 | | $ | 444 | | $ | 790 | | $ | 444 | | $ | (346 | ) | (44 | )% | $ | (346 | ) | (44 | )% | $ | (328 | ) | (42 | )% |
Operating return on allocated equity (1) | | 40.1 | % | 38.5 | % | 36.7 | % | 36.5 | % | 44.9 | % | 40.1 | % | 44.9 | % | 4.8 | % | | | 4.8 | % | | | 8.4 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
On-balance sheet deposits | | $ | 9,482 | | $ | 9,568 | | $ | 9,678 | | $ | 9,652 | | $ | 6,540 | | $ | 9,482 | | $ | 6,540 | | $ | (2,942 | ) | (31 | )% | $ | (2,942 | ) | (31 | )% | $ | (3,112 | ) | (32 | )% |
(1) Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.
Note: Q4 2012 results were impacted by the wind down of banking operations. Excluding this impact, management estimates that the pretax operating margin would have been 13.1%.
12
Ameriprise Financial, Inc.
Advice & Wealth Management Segment
Fourth Quarter 2012
| | | | | | | | | | | | | | | | 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 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | | 2011 | | 2012 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Product Information | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Certificates and Banking - Combined | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax operating earnings | | $ | 24 | | $ | 25 | | $ | 27 | | $ | 24 | | $ | 8 | | $ | 101 | | $ | 84 | | $ | (16 | ) | (67 | )% | $ | (17 | ) | (17 | )% | $ | (16 | ) | (67 | )% |
Allocated equity | | $ | 542 | | $ | 553 | | $ | 568 | | $ | 528 | | $ | 203 | | $ | 542 | | $ | 203 | | $ | (339 | ) | (63 | )% | $ | (339 | ) | (63 | )% | $ | (325 | ) | (62 | )% |
Operating return on allocated equity (1) | | 14.9 | % | 14.9 | % | 14.7 | % | 13.0 | % | 12.5 | % | 14.9 | % | 12.5 | % | (2.4 | )% | | | (2.4 | )% | | | (0.5 | )% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Wealth Management & Distribution | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax operating earnings | | $ | 59 | | $ | 69 | | $ | 84 | | $ | 95 | | $ | 111 | | $ | 305 | | $ | 359 | | $ | 52 | | 88 | % | $ | 54 | | 18 | % | $ | 16 | | 17 | % |
Allocated equity | | $ | 248 | | $ | 246 | | $ | 246 | | $ | 244 | | $ | 241 | | $ | 248 | | $ | 241 | | $ | (7 | ) | (3 | )% | $ | (7 | ) | (3 | )% | $ | (3 | ) | (1 | )% |
Operating return on allocated equity (1) | | 91.6 | % | 88.5 | % | 84.9 | % | 88.3 | % | 108.3 | % | 91.6 | % | 108.3 | % | 16.7 | % | | | 16.7 | % | | | 20.0 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial Plans | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Branded financial plan net cash sales | | $ | 59 | | $ | 55 | | $ | 56 | | $ | 49 | | $ | 63 | | $ | 218 | | $ | 223 | | $ | 4 | | 7 | % | $ | 5 | | 2 | % | $ | 14 | | 29 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial Advisors | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Employee advisors | | 2,230 | | 2,266 | | 2,311 | | 2,328 | | 2,318 | | 2,230 | | 2,318 | | 88 | | 4 | % | 88 | | 4 | % | (10 | ) | — | |
Franchisee advisors | | 7,500 | | 7,478 | | 7,492 | | 7,487 | | 7,449 | | 7,500 | | 7,449 | | (51 | ) | (1 | )% | (51 | ) | (1 | )% | (38 | ) | (1 | )% |
Total branded financial advisors | | 9,730 | | 9,744 | | 9,803 | | 9,815 | | 9,767 | | 9,730 | | 9,767 | | 37 | | — | | 37 | | — | | (48 | ) | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating total net revenues per financial advisor (in thousands) (2) | | $ | 93 | | $ | 98 | | $ | 97 | | $ | 98 | | $ | 103 | | $ | 384 | | $ | 396 | | $ | 10 | | 11 | % | $ | 12 | | 3 | % | $ | 5 | | 5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advisor Retention | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Employee | | 91.5 | % | 92.1 | % | 92.2 | % | 91.5 | % | 90.8 | % | 91.5 | % | 90.8 | % | (0.7 | )% | | | (0.7 | )% | | | (0.7 | )% | | |
Franchisee | | 94.6 | % | 94.1 | % | 94.3 | % | 93.8 | % | 93.8 | % | 94.6 | % | 93.8 | % | (0.8 | )% | | | (0.8 | )% | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Client Assets (at period end) | | $ | 309,864 | | $ | 334,086 | | $ | 330,847 | | $ | 344,857 | | $ | 352,751 | | $ | 309,864 | | $ | 352,751 | | $ | 42,887 | | 14 | % | $ | 42,887 | | 14 | % | $ | 7,894 | | 2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Wrap Accounts | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | $ | 96,947 | | $ | 103,385 | | $ | 113,128 | | $ | 113,414 | | $ | 120,554 | | $ | 97,514 | | $ | 103,385 | | $ | 23,607 | | 24 | % | $ | 5,871 | | 6 | % | $ | 7,140 | | 6 | % |
Net flows | | 1,350 | | 2,887 | | 2,634 | | 2,062 | | 2,062 | | 7,265 | | 9,645 | | 712 | | 53 | % | 2,380 | | 33 | % | — | | — | |
Market appreciation (depreciation) and other | | 5,088 | | 6,856 | | (2,348 | ) | 5,078 | | 2,032 | | (1,394 | ) | 11,618 | | (3,056 | ) | (60 | )% | 13,012 | | # | | (3,046 | ) | (60 | )% |
Total wrap ending assets | | $ | 103,385 | | $ | 113,128 | | $ | 113,414 | | $ | 120,554 | | $ | 124,648 | | $ | 103,385 | | $ | 124,648 | | $ | 21,263 | | 21 | % | $ | 21,263 | | 21 | % | $ | 4,094 | | 3 | % |
(1) Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.
(2) Year-to-date is sum of current and prior quarters for the year under review.
Note: Q4 2012 results were impacted by the wind down of banking operations.
# Variance of greater than 100%.
13
Statistical Supplement Package
(unaudited)
Fourth Quarter 2012
Asset Management Segment
14
Ameriprise Financial, Inc.
Asset Management Segment
Fourth Quarter 2012
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | | 2011 | | 2012 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income Statements | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | 588 | | $ | 586 | | $ | 592 | | $ | 620 | | $ | 622 | | $ | 2,434 | | $ | 2,420 | | $ | 34 | | 6 | % | $ | (14 | ) | (1 | )% | $ | 2 | | — | |
Distribution fees | | 104 | | 111 | | 111 | | 109 | | 111 | | 450 | | 442 | | 7 | | 7 | % | (8 | ) | (2 | )% | 2 | | 2 | % |
Net investment income | | 11 | | 5 | | 2 | | 5 | | 7 | | 11 | | 19 | | (4 | ) | (36 | )% | 8 | | 73 | % | 2 | | 40 | % |
Premiums | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Other revenues | | — | | 9 | | 3 | | (1 | ) | 1 | | 5 | | 12 | | 1 | | — | | 7 | | # | | 2 | | # | |
Total revenues | | 703 | | 711 | | 708 | | 733 | | 741 | | 2,900 | | 2,893 | | 38 | | 5 | % | (7 | ) | — | | 8 | | 1 | % |
Banking and deposit interest expense | | 1 | | — | | 1 | | — | | 1 | | 3 | | 2 | | — | | — | | (1 | ) | (33 | )% | 1 | | — | |
Operating total net revenues | | 702 | | 711 | | 707 | | 733 | | 740 | | 2,897 | | 2,891 | | 38 | | 5 | % | (6 | ) | — | | 7 | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | 267 | | 274 | | 272 | | 276 | | 283 | | 1,095 | | 1,105 | | 16 | | 6 | % | 10 | | 1 | % | 7 | | 3 | % |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Amortization of deferred acquisition costs | | 4 | | 3 | | 5 | | 4 | | 4 | | 19 | | 16 | | — | | — | | (3 | ) | (16 | )% | — | | — | |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
General and administrative expense | | 304 | | 303 | | 300 | | 298 | | 312 | | 1,255 | | 1,213 | | 8 | | 3 | % | (42 | ) | (3 | )% | 14 | | 5 | % |
Operating expenses | | 575 | | 580 | | 577 | | 578 | | 599 | | 2,369 | | 2,334 | | 24 | | 4 | % | (35 | ) | (1 | )% | 21 | | 4 | % |
Pretax operating earnings | | $ | 127 | | $ | 131 | | $ | 130 | | $ | 155 | | $ | 141 | | $ | 528 | | $ | 557 | | $ | 14 | | 11 | % | $ | 29 | | 5 | % | $ | (14 | ) | (9 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax operating margin | | 18.1 | % | 18.4 | % | 18.4 | % | 21.1 | % | 19.1 | % | 18.2 | % | 19.3 | % | 1.0 | % | | | 1.1 | % | | | (2.0 | )% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating total net revenues | | $ | 702 | | $ | 711 | | $ | 707 | | $ | 733 | | $ | 740 | | $ | 2,897 | | $ | 2,891 | | $ | 38 | | 5 | % | $ | (6 | ) | — | | $ | 7 | | 1 | % |
Distribution pass thru revenues | | (201 | ) | (207 | ) | (203 | ) | (203 | ) | (209 | ) | (833 | ) | (822 | ) | (8 | ) | (4 | )% | 11 | | 1 | % | (6 | ) | (3 | )% |
Subadvisory and other pass thru revenues | | (100 | ) | (96 | ) | (95 | ) | (105 | ) | (103 | ) | (385 | ) | (399 | ) | (3 | ) | (3 | )% | (14 | ) | (4 | )% | 2 | | 2 | % |
Adjusted operating revenues (1) | | $ | 401 | | $ | 408 | | $ | 409 | | $ | 425 | | $ | 428 | | $ | 1,679 | | $ | 1,670 | | $ | 27 | | 7 | % | $ | (9 | ) | (1 | )% | $ | 3 | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax operating earnings | | $ | 127 | | $ | 131 | | $ | 130 | | $ | 155 | | $ | 141 | | $ | 528 | | $ | 557 | | $ | 14 | | 11 | % | $ | 29 | | 5 | % | $ | (14 | ) | (9 | )% |
Operating net investment income | | (11 | ) | (5 | ) | (2 | ) | (5 | ) | (7 | ) | (11 | ) | (19 | ) | 4 | | 36 | % | (8 | ) | (73 | )% | (2 | ) | (40 | )% |
Amortization of intangibles | | 10 | | 10 | | 10 | | 10 | | 10 | | 40 | | 40 | | — | | — | | — | | — | | — | | — | |
Adjusted operating earnings (1) | | $ | 126 | | $ | 136 | | $ | 138 | | $ | 160 | | $ | 144 | | $ | 557 | | $ | 578 | | $ | 18 | | 14 | % | $ | 21 | | 4 | % | $ | (16 | ) | (10 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted net pretax operating margin (1)(3) | | 31.4 | % | 33.3 | % | 33.7 | % | 37.6 | % | 33.6 | % | 33.2 | % | 34.6 | % | 2.2 | % | | | 1.4 | % | | | (4.0 | )% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated equity | | $ | 1,922 | | $ | 1,913 | | $ | 1,933 | | $ | 1,914 | | $ | 1,913 | | $ | 1,922 | | $ | 1,913 | | $ | (9 | ) | — | | $ | (9 | ) | — | | $ | (1 | ) | — | |
Operating return on allocated equity (2) | | 20.4 | % | 20.1 | % | 18.9 | % | 20.1 | % | 21.3 | % | 20.4 | % | 21.3 | % | 0.9 | % | | | 0.9 | % | | | 1.2 | % | | |
(1) See non-GAAP financial information on pg 34.
(2) Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.
(3) Calculated as adjusted operating earnings as a percentage of adjusted operating revenues.
# Variance of greater than 100%.
15
Ameriprise Financial, Inc.
Asset Management Segment
Fourth Quarter 2012
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | | 2011 | | 2012 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Managed Asset Net Flows | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Columbia managed asset net flows | | $ | (8,907 | ) | $ | (5,122 | ) | $ | (5,401 | ) | $ | (3,498 | ) | $ | (4,553 | ) | $ | (16,688 | ) | $ | (18,574 | ) | $ | 4,354 | | 49 | % | $ | (1,886 | ) | (11 | )% | $ | (1,055 | ) | (30 | )% |
Threadneedle managed asset net flows (1) | | 12,612 | | 260 | | (2,436 | ) | (165 | ) | 439 | | 10,582 | | (1,902 | ) | (12,173 | ) | (97 | )% | (12,484 | ) | # | | 604 | | # | |
Sub-advised eliminations (1) | | 85 | | 260 | | 1,189 | | 188 | | 169 | | (796 | ) | 1,806 | | 84 | | 99 | % | 2,602 | | # | | (19 | ) | (10 | )% |
Total managed asset net flows | | $ | 3,790 | | $ | (4,602 | ) | $ | (6,648 | ) | $ | (3,475 | ) | $ | (3,945 | ) | $ | (6,902 | ) | $ | (18,670 | ) | $ | (7,735 | ) | # | | $ | (11,768 | ) | # | | $ | (470 | ) | (14 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Managed Assets Reconciliations | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Columbia managed assets | | $ | 326,119 | | $ | 344,006 | | $ | 331,934 | | $ | 339,943 | | $ | 330,419 | | $ | 326,119 | | $ | 330,419 | | $ | 4,300 | | 1 | % | $ | 4,300 | | 1 | % | $ | (9,524 | ) | (3 | )% |
Threadneedle managed assets | | 113,573 | | 123,340 | | 116,630 | | 123,705 | | 127,752 | | 113,573 | | 127,752 | | 14,179 | | 12 | % | 14,179 | | 12 | % | 4,047 | | 3 | % |
Sub-advised eliminations | | (4,189 | ) | (4,305 | ) | (2,760 | ) | (2,792 | ) | (2,730 | ) | (4,189 | ) | (2,730 | ) | 1,459 | | 35 | % | 1,459 | | 35 | % | 62 | | 2 | % |
Total managed assets | | $ | 435,503 | | $ | 463,041 | | $ | 445,804 | | $ | 460,856 | | $ | 455,441 | | $ | 435,503 | | $ | 455,441 | | $ | 19,938 | | 5 | % | $ | 19,938 | | 5 | % | $ | (5,415 | ) | (1 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Managed Assets by Type | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity | | $ | 209,933 | | $ | 231,893 | | $ | 213,448 | | $ | 224,136 | | $ | 224,078 | | $ | 209,933 | | $ | 224,078 | | $ | 14,145 | | 7 | % | $ | 14,145 | | 7 | % | $ | (58 | ) | — | |
Fixed income | | 196,542 | | 202,256 | | 204,340 | | 209,742 | | 205,210 | | 196,542 | | 205,210 | | 8,668 | | 4 | % | 8,668 | | 4 | % | (4,532 | ) | (2 | )% |
Money market | | 7,465 | | 6,869 | | 6,871 | | 6,766 | | 6,480 | | 7,465 | | 6,480 | | (985 | ) | (13 | )% | (985 | ) | (13 | )% | (286 | ) | (4 | )% |
Alternative | | 9,271 | | 9,313 | | 8,817 | | 7,365 | | 6,703 | | 9,271 | | 6,703 | | (2,568 | ) | (28 | )% | (2,568 | ) | (28 | )% | (662 | ) | (9 | )% |
Hybrid and other | | 12,292 | | 12,710 | | 12,328 | | 12,847 | | 12,970 | | 12,292 | | 12,970 | | 678 | | 6 | % | 678 | | 6 | % | 123 | | 1 | % |
Total managed assets by type | | $ | 435,503 | | $ | 463,041 | | $ | 445,804 | | $ | 460,856 | | $ | 455,441 | | $ | 435,503 | | $ | 455,441 | | $ | 19,938 | | 5 | % | $ | 19,938 | | 5 | % | $ | (5,415 | ) | (1 | )% |
(1) Threadneedle net flows in Q2 2012 include $1.2 billion of outflows primarily due to a change in subadvisory relationship between Threadneedle and Columbia. These outflows are eliminated at the segment level.
# Variance of greater than 100%.
16
Ameriprise Financial, Inc.
Asset Management Segment - Columbia
Fourth Quarter 2012
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | | 2011 | | 2012 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Columbia Managed Assets Rollforward | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retail Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | $ | 194,130 | | $ | 204,843 | | $ | 221,429 | | $ | 211,376 | | $ | 218,839 | | $ | 218,460 | | $ | 204,843 | | $ | 24,709 | | 13 | % | $ | (13,617 | ) | (6 | )% | $ | 7,463 | | 4 | % |
Mutual fund inflows | | 8,451 | | 10,717 | | 9,158 | | 8,446 | | 9,885 | | 39,193 | | 38,206 | | 1,434 | | 17 | % | (987 | ) | (3 | )% | 1,439 | | 17 | % |
Mutual fund outflows | | (11,702 | ) | (14,267 | ) | (14,821 | ) | (10,204 | ) | (14,236 | ) | (48,621 | ) | (53,528 | ) | (2,534 | ) | (22 | )% | (4,907 | ) | (10 | )% | (4,032 | ) | (40 | )% |
Net VP/VIT fund flows | | 417 | | 279 | | (33 | ) | (160 | ) | (113 | ) | 1,580 | | (27 | ) | (530 | ) | # | | (1,607 | ) | # | | 47 | | 29 | % |
Net new flows | | (2,834 | ) | (3,271 | ) | (5,696 | ) | (1,918 | ) | (4,464 | ) | (7,848 | ) | (15,349 | ) | (1,630 | ) | (58 | )% | (7,501 | ) | (96 | )% | (2,546 | ) | # | |
Reinvested dividends | | 1,963 | | 342 | | 1,986 | | 474 | | 3,178 | | 4,758 | | 5,980 | | 1,215 | | 62 | % | 1,222 | | 26 | % | 2,704 | | # | |
Net flows | | (871 | ) | (2,929 | ) | (3,710 | ) | (1,444 | ) | (1,286 | ) | (3,090 | ) | (9,369 | ) | (415 | ) | (48 | )% | (6,279 | ) | # | | 158 | | 11 | % |
Distributions | | (2,559 | ) | (534 | ) | (2,297 | ) | (642 | ) | (3,991 | ) | (6,214 | ) | (7,464 | ) | (1,432 | ) | (56 | )% | (1,250 | ) | (20 | )% | (3,349 | ) | # | |
Market appreciation (depreciation) and other (2) | | 14,143 | | 20,049 | | (4,046 | ) | 9,549 | | 2,702 | | (4,313 | ) | 28,254 | | (11,441 | ) | (81 | )% | 32,567 | | # | | (6,847 | ) | (72 | )% |
Total ending assets | | 204,843 | | 221,429 | | 211,376 | | 218,839 | | 216,264 | | 204,843 | | 216,264 | | 11,421 | | 6 | % | 11,421 | | 6 | % | (2,575 | ) | (1 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
% of total retail assets sub-advised | | 18.2 | % | 18.2 | % | 20.5 | % | 20.5 | % | 21.8 | % | 18.2 | % | 21.8 | % | 3.7 | % | | | 3.7 | % | | | 1.3 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | 81,906 | | 73,270 | | 75,024 | | 72,753 | | 74,474 | | 89,406 | | 73,270 | | (7,432 | ) | (9 | )% | (16,136 | ) | (18 | )% | 1,721 | | 2 | % |
Inflows | | 4,376 | | 4,176 | | 3,720 | | 4,366 | | 5,256 | | 18,395 | | 17,518 | | 880 | | 20 | % | (877 | ) | (5 | )% | 890 | | 20 | % |
Outflows | | (11,445 | ) | (6,063 | ) | (5,114 | ) | (4,911 | ) | (7,883 | ) | (30,169 | ) | (23,971 | ) | 3,562 | | 31 | % | 6,198 | | 21 | % | (2,972 | ) | (61 | )% |
Net flows | | (7,069 | ) | (1,887 | ) | (1,394 | ) | (545 | ) | (2,627 | ) | (11,774 | ) | (6,453 | ) | 4,442 | | 63 | % | 5,321 | | 45 | % | (2,082 | ) | # | |
Market appreciation (depreciation) and other (1) | | (1,567 | ) | 3,641 | | (877 | ) | 2,266 | | 570 | | (4,362 | ) | 5,600 | | 2,137 | | # | | 9,962 | | # | | (1,696 | ) | (75 | )% |
Total ending assets | | 73,270 | | 75,024 | | 72,753 | | 74,474 | | 72,417 | | 73,270 | | 72,417 | | (853 | ) | (1 | )% | (853 | ) | (1 | )% | (2,057 | ) | (3 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Alternative | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | 8,955 | | 8,124 | | 8,253 | | 7,782 | | 6,354 | | 9,971 | | 8,124 | | (2,601 | ) | (29 | )% | (1,847 | ) | (19 | )% | (1,428 | ) | (18 | )% |
Inflows | | 93 | | 96 | | 165 | | 415 | | 29 | | 508 | | 705 | | (64 | ) | (69 | )% | 197 | | 39 | % | (386 | ) | (93 | )% |
Outflows | | (1,060 | ) | (402 | ) | (462 | ) | (1,924 | ) | (669 | ) | (2,332 | ) | (3,457 | ) | 391 | | 37 | % | (1,125 | ) | (48 | )% | 1,255 | | 65 | % |
Net flows | | (967 | ) | (306 | ) | (297 | ) | (1,509 | ) | (640 | ) | (1,824 | ) | (2,752 | ) | 327 | | 34 | % | (928 | ) | (51 | )% | 869 | | 58 | % |
Market appreciation (depreciation) and other | | 136 | | 435 | | (174 | ) | 81 | | (30 | ) | (23 | ) | 312 | | (166 | ) | # | | 335 | | # | | (111 | ) | # | |
Total ending assets | | 8,124 | | 8,253 | | 7,782 | | 6,354 | | 5,684 | | 8,124 | | 5,684 | | (2,440 | ) | (30 | )% | (2,440 | ) | (30 | )% | (670 | ) | (11 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Affiliated General Account Assets | | 40,021 | | 39,402 | | 40,113 | | 40,359 | | 36,136 | | 40,021 | | 36,136 | | (3,885 | ) | (10 | )% | (3,885 | ) | (10 | )% | (4,223 | ) | (10 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other and Eliminations | | (139 | ) | (102 | ) | (90 | ) | (83 | ) | (82 | ) | (139 | ) | (82 | ) | 57 | | 41 | % | 57 | | 41 | % | 1 | | 1 | % |
Total Columbia managed assets | | $ | 326,119 | | $ | 344,006 | | $ | 331,934 | | $ | 339,943 | | $ | 330,419 | | $ | 326,119 | | $ | 330,419 | | $ | 4,300 | | 1 | % | $ | 4,300 | | 1 | % | $ | (9,524 | ) | (3 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Columbia net flows | | $ | (8,907 | ) | $ | (5,122 | ) | $ | (5,401 | ) | $ | (3,498 | ) | $ | (4,553 | ) | $ | (16,688 | ) | $ | (18,574 | ) | $ | 4,354 | | 49 | % | $ | (1,886 | ) | (11 | )% | $ | (1,055 | ) | (30 | )% |
(1) Included in Market appreciation (depreciation) and other for Institutional funds in the 4th quarter of 2011 are ($4.7B) due to the transfer of assets from Separately Managed Accounts (SMAs) to Unified Managed Accounts (UMAs).
(2) Included in Market appreciation (depreciation) and other for retail funds in the 2nd quarter of 2012 are $3B due to the transfer of Active Diversified Portfolio assets from non-proprietary to proprietary funds.
# Variance of greater than 100%.
17
Ameriprise Financial, Inc.
Asset Management Segment - Threadneedle
Fourth Quarter 2012
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | | 2011 | | 2012 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Threadneedle Managed Assets Rollforward | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retail Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | $ | 30,097 | | $ | 31,809 | | $ | 36,345 | | $ | 33,329 | | $ | 36,923 | | $ | 33,394 | | $ | 31,809 | | $ | 6,826 | | 23 | % | $ | (1,585 | ) | (5 | )% | $ | 3,594 | | 11 | % |
Mutual fund inflows | | 3,530 | | 4,516 | | 3,324 | | 4,148 | | 4,046 | | 17,144 | | 16,034 | | 516 | | 15 | % | (1,110 | ) | (6 | )% | (102 | ) | (2 | )% |
Mutual fund outflows (2) | | (3,041 | ) | (3,399 | ) | (4,589 | ) | (2,800 | ) | (3,023 | ) | (16,530 | ) | (13,811 | ) | 18 | | 1 | % | 2,719 | | 16 | % | (223 | ) | (8 | )% |
Net new flows | | 489 | | 1,117 | | (1,265 | ) | 1,348 | | 1,023 | | 614 | | 2,223 | | 534 | | # | | 1,609 | | # | | (325 | ) | (24 | )% |
Reinvested dividends | | 84 | | 14 | | 51 | | 4 | | 50 | | 168 | | 119 | | (34 | ) | (40 | )% | (49 | ) | (29 | )% | 46 | | # | |
Net flows | | 573 | | 1,131 | | (1,214 | ) | 1,352 | | 1,073 | | 782 | | 2,342 | | 500 | | 87 | % | 1,560 | | # | | (279 | ) | (21 | )% |
Distributions | | (213 | ) | (74 | ) | (156 | ) | (67 | ) | (181 | ) | (611 | ) | (478 | ) | 32 | | 15 | % | 133 | | 22 | % | (114 | ) | # | |
Market appreciation (depreciation) | | 1,296 | | 2,387 | | (1,233 | ) | 1,172 | | 880 | | (2,425 | ) | 3,206 | | (416 | ) | (32 | )% | 5,631 | | # | | (292 | ) | (25 | )% |
Foreign currency translation (1) | | (128 | ) | 1,033 | | (610 | ) | 969 | | 203 | | (169 | ) | 1,595 | | 331 | | # | | 1,764 | | # | | (766 | ) | (79 | )% |
Other | | 184 | | 59 | | 197 | | 168 | | 188 | | 838 | | 612 | | 4 | | 2 | % | (226 | ) | (27 | )% | 20 | | 12 | % |
Total ending assets | | 31,809 | | 36,345 | | 33,329 | | 36,923 | | 39,086 | | 31,809 | | 39,086 | | 7,277 | | 23 | % | 7,277 | | 23 | % | 2,163 | | 6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | 65,206 | | 80,617 | | 85,935 | | 82,266 | | 85,771 | | 70,916 | | 80,617 | | 20,565 | | 32 | % | 9,701 | | 14 | % | 3,505 | | 4 | % |
Inflows | | 15,270 | | 2,778 | | 1,854 | | 1,941 | | 2,557 | | 21,686 | | 9,130 | | (12,713 | ) | (83 | )% | (12,556 | ) | (58 | )% | 616 | | 32 | % |
Outflows | | (3,161 | ) | (3,542 | ) | (3,047 | ) | (3,404 | ) | (3,188 | ) | (11,668 | ) | (13,181 | ) | (27 | ) | (1 | )% | (1,513 | ) | (13 | )% | 216 | | 6 | % |
Net flows | | 12,109 | | (764 | ) | (1,193 | ) | (1,463 | ) | (631 | ) | 10,018 | | (4,051 | ) | (12,740 | ) | # | | (14,069 | ) | # | | 832 | | 57 | % |
Market appreciation (depreciation) | | 3,211 | | 3,115 | | (1,603 | ) | 1,951 | | 1,416 | | (1,857 | ) | 4,879 | | (1,795 | ) | (56 | )% | 6,736 | | # | | (535 | ) | (27 | )% |
Foreign currency translation (1) | | (373 | ) | 2,437 | | (1,615 | ) | 2,446 | | 452 | | (356 | ) | 3,720 | | 825 | | # | | 4,076 | | # | | (1,994 | ) | (82 | )% |
Other | | 464 | | 530 | | 742 | | 571 | | 639 | | 1,896 | | 2,482 | | 175 | | 38 | % | 586 | | 31 | % | 68 | | 12 | % |
Total ending assets | | 80,617 | | 85,935 | | 82,266 | | 85,771 | | 87,647 | | 80,617 | | 87,647 | | 7,030 | | 9 | % | 7,030 | | 9 | % | 1,876 | | 2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Alternative | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | 1,162 | | 1,147 | | 1,060 | | 1,035 | | 1,011 | | 1,338 | | 1,147 | | (151 | ) | (13 | )% | (191 | ) | (14 | )% | (24 | ) | (2 | )% |
Inflows | | 31 | | — | | — | | 67 | | 26 | | 282 | | 93 | | (5 | ) | (16 | )% | (189 | ) | (67 | )% | (41 | ) | (61 | )% |
Outflows | | (101 | ) | (107 | ) | (29 | ) | (121 | ) | (29 | ) | (500 | ) | (286 | ) | 72 | | 71 | % | 214 | | 43 | % | 92 | | 76 | % |
Net flows | | (70 | ) | (107 | ) | (29 | ) | (54 | ) | (3 | ) | (218 | ) | (193 | ) | 67 | | 96 | % | 25 | | 11 | % | 51 | | 94 | % |
Market appreciation (depreciation) | | (4 | ) | (27 | ) | 3 | | (12 | ) | (13 | ) | (85 | ) | (49 | ) | (9 | ) | # | | 36 | | 42 | % | (1 | ) | (8 | )% |
Foreign currency translation (1) | | (3 | ) | 33 | | (19 | ) | 29 | | 6 | | (1 | ) | 49 | | 9 | | # | | 50 | | # | | (23 | ) | (79 | )% |
Other | | 62 | | 14 | | 20 | | 13 | | 18 | | 113 | | 65 | | (44 | ) | (71 | )% | (48 | ) | (42 | )% | 5 | | 38 | % |
Total ending assets | | 1,147 | | 1,060 | | 1,035 | | 1,011 | | 1,019 | | 1,147 | | 1,019 | | (128 | ) | (11 | )% | (128 | ) | (11 | )% | 8 | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Threadneedle managed assets | | $ | 113,573 | | $ | 123,340 | | $ | 116,630 | | $ | 123,705 | | $ | 127,752 | | $ | 113,573 | | $ | 127,752 | | $ | 14,179 | | 12 | % | $ | 14,179 | | 12 | % | $ | 4,047 | | 3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Threadneedle net flows | | $ | 12,612 | | $ | 260 | | $ | (2,436 | ) | $ | (165 | ) | $ | 439 | | $ | 10,582 | | $ | (1,902 | ) | $ | (12,173 | ) | (97 | )% | $ | (12,484 | ) | # | | $ | 604 | | # | |
(1) | Amounts represent British Pound to US dollar conversion. |
(2) | Retail fund outflows in Q2 2012 include $1.2 billion primarily due to a change in subadvisory relationship between Threadneedle and Columbia. These outflows are eliminated at the segment level. |
| |
# | Variance of greater than 100%. |
18
Ameriprise Financial, Inc.
Asset Management Segment - Columbia
Fourth Quarter 2012
Mutual Fund Rankings in top 2 Lipper Quartiles
| | | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | |
Domestic Equity | | | | | | | | | | | | | |
Equal weighted | | 1 year | | 37 | % | 46 | % | 43 | % | 54 | % | 67 | % |
| | 3 year | | 48 | % | 60 | % | 56 | % | 47 | % | 53 | % |
| | 5 year | | 61 | % | 63 | % | 60 | % | 57 | % | 54 | % |
Asset weighted | | 1 year | | 38 | % | 59 | % | 62 | % | 64 | % | 71 | % |
| | 3 year | | 39 | % | 76 | % | 76 | % | 69 | % | 72 | % |
| | 5 year | | 58 | % | 60 | % | 75 | % | 72 | % | 73 | % |
International Equity | | | | | | | | | | | | | |
Equal weighted | | 1 year | | 61 | % | 83 | % | 63 | % | 67 | % | 55 | % |
| | 3 year | | 65 | % | 65 | % | 41 | % | 50 | % | 44 | % |
| | 5 year | | 50 | % | 64 | % | 57 | % | 64 | % | 60 | % |
Asset weighted | | 1 year | | 71 | % | 93 | % | 84 | % | 80 | % | 20 | % |
| | 3 year | | 77 | % | 75 | % | 15 | % | 65 | % | 19 | % |
| | 5 year | | 65 | % | 84 | % | 73 | % | 80 | % | 80 | % |
Taxable Fixed Income | | | | | | | | | | | | | |
Equal weighted | | 1 year | | 85 | % | 85 | % | 75 | % | 70 | % | 67 | % |
| | 3 year | | 55 | % | 45 | % | 45 | % | 65 | % | 75 | % |
| | 5 year | | 68 | % | 68 | % | 74 | % | 74 | % | 79 | % |
Asset weighted | | 1 year | | 93 | % | 95 | % | 82 | % | 72 | % | 72 | % |
| | 3 year | | 64 | % | 44 | % | 53 | % | 80 | % | 87 | % |
| | 5 year | | 73 | % | 75 | % | 81 | % | 81 | % | 83 | % |
Tax Exempt Fixed Income | | | | | | | | | | | | | |
Equal weighted | | 1 year | | 95 | % | 90 | % | 90 | % | 85 | % | 90 | % |
| | 3 year | | 85 | % | 95 | % | 95 | % | 95 | % | 100 | % |
| | 5 year | | 95 | % | 90 | % | 90 | % | 95 | % | 100 | % |
Asset weighted | | 1 year | | 85 | % | 82 | % | 83 | % | 77 | % | 93 | % |
| | 3 year | | 84 | % | 85 | % | 85 | % | 86 | % | 100 | % |
| | 5 year | | 99 | % | 98 | % | 98 | % | 99 | % | 100 | % |
Asset Allocation Funds | | | | | | | | | | | | | |
Equal weighted | | 1 year | | 86 | % | 91 | % | 91 | % | 40 | % | 60 | % |
| | 3 year | | 48 | % | 67 | % | 71 | % | 85 | % | 85 | % |
| | 5 year | | 57 | % | 52 | % | 52 | % | 85 | % | 85 | % |
Asset weighted | | 1 year | | 85 | % | 92 | % | 92 | % | 43 | % | 81 | % |
| | 3 year | | 79 | % | 89 | % | 90 | % | 91 | % | 91 | % |
| | 5 year | | 88 | % | 88 | % | 90 | % | 91 | % | 91 | % |
| | | | | | | | | | | | | |
Number of funds with 4 or 5 Morningstar star ratings | | | | | | | | | | | | | |
Overall | | | | 52 | | 56 | | 56 | | 53 | | 51 | |
3 year | | | | 46 | | 53 | | 53 | | 52 | | 56 | |
5 year | | | | 49 | | 49 | | 45 | | 43 | | 44 | |
| | | | | | | | | | | | | |
Percent of funds with 4 or 5 Morningstar star ratings | | | | | | | | | | | | | |
Overall | | | | 44 | % | 47 | % | 47 | % | 47 | % | 46 | % |
3 year | | | | 39 | % | 44 | % | 45 | % | 46 | % | 50 | % |
5 year | | | | 44 | % | 44 | % | 41 | % | 41 | % | 42 | % |
| | | | | | | | | | | | | |
Percent of assets with 4 or 5 Morningstar star ratings | | | | | | | | | | | | | |
Overall | | | | 59 | % | 66 | % | 64 | % | 66 | % | 66 | % |
3 year | | | | 40 | % | 53 | % | 40 | % | 47 | % | 52 | % |
5 year | | | | 42 | % | 44 | % | 43 | % | 43 | % | 57 | % |
Mutual fund performance rankings are based on the performance of Class Z fund shares for Columbia branded mutual funds. In instances where a fund’s Class Z shares do not have a full one, three or five year track record, performance for an older share class of the same fund, typically Class A shares, is utilized for the period before Class Z shares were launched. No adjustments to the historical track records are made to account for differences in fund expenses between share classes of a fund.
Equal Weighted Rankings in Top 2 Quartiles: Counts the number of funds with above median ranking divided by the total number of funds. Asset size is not a factor.
Asset Weighted Rankings in Top 2 Quartiles: Sums the total assets of the funds with above median ranking (using Class Z and appended Class Z) divided by total assets of all funds. Funds with more assets will receive a greater share of the total percentage above or below median.
Aggregated data includes all Columbia branded mutual funds.
19
Ameriprise Financial, Inc.
Asset Management Segment - Threadneedle
Fourth Quarter 2012
Retail Fund Rankings in Top 2 Morningstar Quartiles or Above Index Benchmark
| | | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | |
Equity | | | | | | | | | | | | | |
Equal weighted | | 1 year | | 65 | % | 73 | % | 65 | % | 59 | % | 75 | % |
| | 3 year | | 72 | % | 73 | % | 85 | % | 78 | % | 80 | % |
| | 5 year | | 86 | % | 86 | % | 80 | % | 83 | % | 84 | % |
Asset weighted | | 1 year | | 68 | % | 84 | % | 87 | % | 61 | % | 78 | % |
| | 3 year | | 76 | % | 78 | % | 91 | % | 80 | % | 93 | % |
| | 5 year | | 86 | % | 87 | % | 86 | % | 88 | % | 94 | % |
| | | | | | | | | | | | | |
Fixed Income | | | | | | | | | | | | | |
Equal weighted | | 1 year | | 69 | % | 79 | % | 67 | % | 92 | % | 83 | % |
| | 3 year | | 77 | % | 85 | % | 64 | % | 76 | % | 76 | % |
| | 5 year | | 82 | % | 82 | % | 64 | % | 73 | % | 91 | % |
Asset weighted | | 1 year | | 69 | % | 80 | % | 39 | % | 99 | % | 60 | % |
| | 3 year | | 75 | % | 80 | % | 41 | % | 52 | % | 59 | % |
| | 5 year | | 97 | % | 97 | % | 68 | % | 75 | % | 98 | % |
| | | | | | | | | | | | | |
Allocation (Managed) Funds | | | | | | | | | | | | | |
Equal weighted | | 1 year | | 33 | % | 67 | % | 0 | % | 67 | % | 67 | % |
| | 3 year | | 67 | % | 50 | % | 67 | % | 67 | % | 67 | % |
| | 5 year | | 100 | % | 100 | % | 100 | % | 83 | % | 83 | % |
Asset weighted | | 1 year | | 14 | % | 80 | % | 0 | % | 77 | % | 77 | % |
| | 3 year | | 49 | % | 41 | % | 78 | % | 77 | % | 77 | % |
| | 5 year | | 100 | % | 100 | % | 100 | % | 86 | % | 86 | % |
The performance of each fund is measured on a consistent basis against the most appropriate benchmark - a peer group of similar funds or an index.
Equal weighted: Counts the number of funds with above median ranking (if measured against peer group) or above index performance (if measured against an index) divided by the total number of funds. Asset size is not a factor.
Asset weighted: Sums the assets of the funds with above median ranking (if measured against peer group) or above index performance (if measured against an index) divided by the total sum of assets in the funds. Funds with more assets will receive a greater share of the total percentage above or below median or index.
Aggregated Allocation (Managed) Funds include funds that invest in other funds of the Threadneedle range including those funds that invest in both equity and fixed income.
Aggregated Threadneedle data includes funds on the Threadneedle platform sub-advised by Columbia as well as advisors not affiliated with Ameriprise Financial, Inc.
20
Statistical Supplement Package
(unaudited)
Fourth Quarter 2012
Annuities Segment
21
Ameriprise Financial, Inc.
Annuities Segment
Fourth Quarter 2012
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | | 2011 | | 2012 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income Statements | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | 154 | | $ | 160 | | $ | 159 | | $ | 163 | | $ | 166 | | $ | 622 | | $ | 648 | | $ | 12 | | 8 | % | $ | 26 | | 4 | % | $ | 3 | | 2 | % |
Distribution fees | | 76 | | 76 | | 78 | | 82 | | 81 | | 312 | | 317 | | 5 | | 7 | % | 5 | | 2 | % | (1 | ) | (1 | )% |
Net investment income | | 304 | | 293 | | 287 | | 276 | | 276 | | 1,279 | | 1,132 | | (28 | ) | (9 | )% | (147 | ) | (11 | )% | — | | — | |
Premiums | | 34 | | 32 | | 28 | | 30 | | 28 | | 161 | | 118 | | (6 | ) | (18 | )% | (43 | ) | (27 | )% | (2 | ) | (7 | )% |
Other revenues | | 66 | | 67 | | 76 | | 81 | | 85 | | 256 | | 309 | | 19 | | 29 | % | 53 | | 21 | % | 4 | | 5 | % |
Total revenues | | 634 | | 628 | | 628 | | 632 | | 636 | | 2,630 | | 2,524 | | 2 | | — | | (106 | ) | (4 | )% | 4 | | 1 | % |
Banking and deposit interest expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Operating total net revenues | | 634 | | 628 | | 628 | | 632 | | 636 | | 2,630 | | 2,524 | | 2 | | — | | (106 | ) | (4 | )% | 4 | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | 97 | | 100 | | 97 | | 98 | | 100 | | 400 | | 395 | | 3 | | 3 | % | (5 | ) | (1 | )% | 2 | | 2 | % |
Interest credited to fixed accounts | | 186 | | 171 | | 174 | | 173 | | 170 | | 714 | | 688 | | (16 | ) | (9 | )% | (26 | ) | (4 | )% | (3 | ) | (2 | )% |
Benefits, claims, losses and settlement expenses | | 93 | | 78 | | 121 | | 143 | | 77 | | 405 | | 419 | | (16 | ) | (17 | )% | 14 | | 3 | % | (66 | ) | (46 | )% |
Amortization of deferred acquisition costs | | 38 | | 34 | | 57 | | 72 | | 66 | | 264 | | 229 | | 28 | | 74 | % | (35 | ) | (13 | )% | (6 | ) | (8 | )% |
Interest and debt expense | | — | | 1 | | — | | — | | 1 | | 1 | | 2 | | 1 | | — | | 1 | | # | | 1 | | — | |
General and administrative expense | | 56 | | 55 | | 63 | | 55 | | 51 | | 221 | | 224 | | (5 | ) | (9 | )% | 3 | | 1 | % | (4 | ) | (7 | )% |
Operating expenses | | 470 | | 439 | | 512 | | 541 | | 465 | | 2,005 | | 1,957 | | (5 | ) | (1 | )% | (48 | ) | (2 | )% | (76 | ) | (14 | )% |
Pretax operating earnings | | $ | 164 | | $ | 189 | | $ | 116 | | $ | 91 | | $ | 171 | | $ | 625 | | $ | 567 | | $ | 7 | | 4 | % | $ | (58 | ) | (9 | )% | $ | 80 | | 88 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax operating margin | | 25.9 | % | 30.1 | % | 18.5 | % | 14.4 | % | 26.9 | % | 23.8 | % | 22.5 | % | 1.0 | % | | | (1.3 | )% | | | 12.5 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated equity | | $ | 1,931 | | $ | 1,651 | | $ | 1,537 | | $ | 1,507 | | $ | 1,630 | | $ | 1,931 | | $ | 1,630 | | $ | (301 | ) | (16 | )% | $ | (301 | ) | (16 | )% | $ | 123 | | 8 | % |
Operating return on allocated equity (1) | | 23.3 | % | 24.1 | % | 23.1 | % | 22.5 | % | 25.5 | % | 23.3 | % | 25.5 | % | 2.2 | % | | | 2.2 | % | | | 3.0 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Market impact on variable annuity guaranteed living benefits (2) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Risk margin and nonperformance spread impact | | $ | (56 | ) | $ | (60 | ) | $ | 99 | | $ | (32 | ) | $ | (43 | ) | $ | 216 | | $ | (36 | ) | $ | 13 | | 23 | % | $ | (252 | ) | # | | $ | (11 | ) | (34 | )% |
Other | | (55 | ) | (53 | ) | (115 | ) | (59 | ) | (2 | ) | (278 | ) | (229 | ) | 53 | | 96 | % | 49 | | 18 | % | 57 | | 97 | % |
Total VA guaranteed living benefit impact excluded from operating earnings | | $ | (111 | ) | $ | (113 | ) | $ | (16 | ) | $ | (91 | ) | $ | (45 | ) | $ | (62 | ) | $ | (265 | ) | $ | 66 | | 59 | % | $ | (203 | ) | # | | $ | 46 | | 51 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total annuity net flows | | $ | 69 | | $ | (101 | ) | $ | (324 | ) | $ | (396 | ) | $ | (517 | ) | $ | (105 | ) | $ | (1,338 | ) | $ | (586 | ) | # | | $ | (1,233 | ) | # | | $ | (121 | ) | (31 | )% |
(1) Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.
(2) Guaranteed Minimum Withdrawal Benefit (GMWB) and Guaranteed Minimum Accumulation Benefit (GMAB) only, net of hedges, DSIC and DAC amortization.
# Variance of greater than 100%.
22
Ameriprise Financial, Inc.
Annuities Segment
Fourth Quarter 2012
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | | 2011 | | 2012 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product Information | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Variable Annuities | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax operating earnings | | $ | 118 | | $ | 133 | | $ | 83 | | $ | 31 | | $ | 129 | | $ | 365 | | $ | 376 | | $ | 11 | | 9 | % | $ | 11 | | 3 | % | $ | 98 | | # | |
Allocated equity | | $ | 593 | | $ | 359 | | $ | 273 | | $ | 269 | | $ | 390 | | $ | 593 | | $ | 390 | | $ | (203 | ) | (34 | )% | $ | (203 | ) | (34 | )% | $ | 121 | | 45 | % |
Operating return on allocated equity (1) | | 38.4 | % | 44.7 | % | 47.9 | % | 52.4 | % | 74.3 | % | 38.4 | % | 74.3 | % | 35.9 | % | | | 35.9 | % | | | 21.9 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Annuities (2) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax operating earnings | | $ | 46 | | $ | 56 | | $ | 33 | | $ | 60 | | $ | 42 | | $ | 260 | | $ | 191 | | $ | (4 | ) | (9 | )% | $ | (69 | ) | (27 | )% | $ | (18 | ) | (30 | )% |
Allocated equity | | $ | 1,338 | | $ | 1,292 | | $ | 1,264 | | $ | 1,238 | | $ | 1,240 | | $ | 1,338 | | $ | 1,240 | | $ | (98 | ) | (7 | )% | $ | (98 | ) | (7 | )% | $ | 2 | | — | |
Operating return on allocated equity (1) | | 15.0 | % | 13.8 | % | 11.8 | % | 10.9 | % | 11.0 | % | 15.0 | % | 11.0 | % | (4.0 | )% | | | (4.0 | )% | | | 0.1 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Variable Annuities Rollforward | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 58,934 | | $ | 62,343 | | $ | 66,960 | | $ | 65,197 | | $ | 67,515 | | $ | 62,637 | | $ | 62,343 | | $ | 8,581 | | 15 | % | $ | (294 | ) | — | | $ | 2,318 | | 4 | % |
Deposits | | 1,553 | | 1,593 | | 1,178 | | 1,126 | | 1,260 | | 6,399 | | 5,157 | | (293 | ) | (19 | )% | (1,242 | ) | (19 | )% | 134 | | 12 | % |
Withdrawals and terminations | | (1,326 | ) | (1,507 | ) | (1,325 | ) | (1,308 | ) | (1,474 | ) | (5,726 | ) | (5,614 | ) | (148 | ) | (11 | )% | 112 | | 2 | % | (166 | ) | (13 | )% |
Net flows | | 227 | | 86 | | (147 | ) | (182 | ) | (214 | ) | 673 | | (457 | ) | (441 | ) | # | | (1,130 | ) | # | | (32 | ) | (18 | )% |
Investment performance and interest credited | | 3,182 | | 4,531 | | (1,611 | ) | 2,504 | | 753 | | (967 | ) | 6,177 | | (2,429 | ) | (76 | )% | 7,144 | | # | | (1,751 | ) | (70 | )% |
Other | | — | | — | | (5 | ) | (4 | ) | — | | — | | (9 | ) | — | | — | | (9 | ) | — | | 4 | | # | |
Total ending balance - contract accumulation values | | $ | 62,343 | | $ | 66,960 | | $ | 65,197 | | $ | 67,515 | | $ | 68,054 | | $ | 62,343 | | $ | 68,054 | | $ | 5,711 | | 9 | % | $ | 5,711 | | 9 | % | $ | 539 | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Variable annuities fixed sub-accounts | | $ | 4,847 | | $ | 4,849 | | $ | 4,822 | | $ | 4,833 | | $ | 4,833 | | $ | 4,847 | | $ | 4,833 | | $ | (14 | ) | — | | $ | (14 | ) | — | | $ | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Annuities Rollforward | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 14,210 | | $ | 14,193 | | $ | 14,133 | | $ | 14,088 | | $ | 14,001 | | $ | 14,441 | | $ | 14,193 | | $ | (209 | ) | (1 | )% | $ | (248 | ) | (2 | )% | $ | (87 | ) | (1 | )% |
Deposits | | 144 | | 133 | | 122 | | 91 | | 39 | | 492 | | 385 | | (105 | ) | (73 | )% | (107 | ) | (22 | )% | (52 | ) | (57 | )% |
Withdrawals and terminations | | (302 | ) | (320 | ) | (299 | ) | (305 | ) | (342 | ) | (1,270 | ) | (1,266 | ) | (40 | ) | (13 | )% | 4 | | — | | (37 | ) | (12 | )% |
Net flows | | (158 | ) | (187 | ) | (177 | ) | (214 | ) | (303 | ) | (778 | ) | (881 | ) | (145 | ) | (92 | )% | (103 | ) | (13 | )% | (89 | ) | (42 | )% |
Policyholder interest credited | | 133 | | 127 | | 127 | | 127 | | 125 | | 522 | | 506 | | (8 | ) | (6 | )% | (16 | ) | (3 | )% | (2 | ) | (2 | )% |
Other | | 8 | | — | | 5 | | — | | — | | 8 | | 5 | | (8 | ) | # | | (3 | ) | (38 | )% | — | | — | |
Total ending balance - contract accumulation values | | $ | 14,193 | | $ | 14,133 | | $ | 14,088 | | $ | 14,001 | | $ | 13,823 | | $ | 14,193 | | $ | 13,823 | | $ | (370 | ) | (3 | )% | $ | (370 | ) | (3 | )% | $ | (178 | ) | (1 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capitalized interest | | $ | 1 | | $ | 1 | | $ | 1 | | $ | 1 | | $ | 1 | | $ | 5 | | $ | 4 | | $ | — | | — | | $ | (1 | ) | (20 | )% | $ | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Payout Annuities Reserve Balance | | $ | 2,153 | | $ | 2,148 | | $ | 2,150 | | $ | 2,151 | | $ | 2,151 | | $ | 2,153 | | $ | 2,151 | | $ | (2 | ) | — | | $ | (2 | ) | — | | $ | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tax Equivalent Spread - Fixed Annuities (3) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross rate of return on invested assets (4) | | 6.0 | % | 5.9 | % | 5.7 | % | 5.6 | % | 5.6 | % | 6.1 | % | 5.7 | % | (0.4 | )% | | | (0.4 | )% | | | — | | | |
Crediting rate excluding capitalized interest | | (3.7 | )% | (3.7 | )% | (3.6 | )% | (3.6 | )% | (3.6 | )% | (3.7 | )% | (3.6 | )% | 0.1 | % | | | 0.1 | % | | | — | | | |
Tax equivalent margin spread | | 2.3 | % | 2.2 | % | 2.1 | % | 2.0 | % | 2.0 | % | 2.4 | % | 2.1 | % | (0.3 | )% | | | (0.3 | )% | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Variable Annuities DAC | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 1,429 | | $ | 1,491 | | $ | 1,549 | | $ | 1,533 | | $ | 1,507 | | $ | 1,508 | | $ | 1,491 | | $ | 78 | | 5 | % | $ | (17 | ) | (1 | )% | $ | (26 | ) | (2 | )% |
Capitalization | | 49 | | 48 | | 38 | | 40 | | 46 | | 202 | | 172 | | (3 | ) | (6 | )% | (30 | ) | (15 | )% | 6 | | 15 | % |
Amortization due to market impact on VA guaranteed living benefits | | 41 | | 36 | | (5 | ) | 26 | | 12 | | 5 | | 69 | | (29 | ) | (71 | )% | 64 | | # | | (14 | ) | (54 | )% |
Amortization per income statement | | (27 | ) | (24 | ) | (47 | ) | (78 | ) | (57 | ) | (210 | ) | (206 | ) | (30 | ) | # | | 4 | | 2 | % | 21 | | 27 | % |
Other | | (1 | ) | (2 | ) | (2 | ) | (14 | ) | — | | (14 | ) | (18 | ) | 1 | | # | | (4 | ) | (29 | )% | 14 | | # | |
Total ending balance | | $ | 1,491 | | $ | 1,549 | | $ | 1,533 | | $ | 1,507 | | $ | 1,508 | | $ | 1,491 | | $ | 1,508 | | $ | 17 | | 1 | % | $ | 17 | | 1 | % | $ | 1 | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Fixed Annuities DAC | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 115 | | $ | 108 | | $ | 86 | | $ | 74 | | $ | 71 | | $ | 169 | | $ | 108 | | $ | (44 | ) | (38 | )% | $ | (61 | ) | (36 | )% | $ | (3 | ) | (4 | )% |
Capitalization | | 4 | | 3 | | 3 | | 2 | | — | | 11 | | 8 | | (4 | ) | # | | (3 | ) | (27 | )% | (2 | ) | # | |
Amortization per income statement | | (11 | ) | (10 | ) | (10 | ) | 6 | | (9 | ) | (54 | ) | (23 | ) | 2 | | 18 | % | 31 | | 57 | % | (15 | ) | # | |
Other | | — | | (15 | ) | (5 | ) | (11 | ) | 6 | | (18 | ) | (25 | ) | 6 | | — | | (7 | ) | (39 | )% | 17 | | # | |
Total ending balance | | $ | 108 | | $ | 86 | | $ | 74 | | $ | 71 | | $ | 68 | | $ | 108 | | $ | 68 | | $ | (40 | ) | (37 | )% | $ | (40 | ) | (37 | )% | $ | (3 | ) | (4 | )% |
(1) Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.
(2) Includes payout annuities.
(3) Attributable to interest sensitive products only, which has been approximately 99% of the total ending fixed annuities accumulation values in the periods reported. The asset earnings rate is a calculated yield based on specifically assigned assets.
(4) In the 4th quarter of 2011 through the 4th quarter of 2012, the Gross rates of return on invested assets were impacted by outstanding repurchase agreements. Without these positions, the Gross rates of return on invested assets would have been 5.7%, 5.7%, 5.5%, 5.4% and 5.4% respectively.
# Variance of greater than 100%.
23
Statistical Supplement Package
(unaudited)
Fourth Quarter 2012
Protection Segment
24
Ameriprise Financial, Inc.
Protection Segment
Fourth Quarter 2012
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | | 2011 | | 2012 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income Statements | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | 14 | | $ | 14 | | $ | 13 | | $ | 14 | | $ | 14 | | $ | 56 | | $ | 55 | | $ | — | | — | | $ | (1 | ) | (2 | )% | $ | — | | — | |
Distribution fees | | 25 | | 23 | | 23 | | 22 | | 23 | | 95 | | 91 | | (2 | ) | (8 | )% | (4 | ) | (4 | )% | 1 | | 5 | % |
Net investment income | | 103 | | 106 | | 106 | | 110 | | 108 | | 426 | | 430 | | 5 | | 5 | % | 4 | | 1 | % | (2 | ) | (2 | )% |
Premiums | | 276 | | 273 | | 278 | | 283 | | 287 | | 1,076 | | 1,121 | | 11 | | 4 | % | 45 | | 4 | % | 4 | | 1 | % |
Other revenues | | 112 | | 107 | | 108 | | 67 | | 110 | | 417 | | 392 | | (2 | ) | (2 | )% | (25 | ) | (6 | )% | 43 | | 64 | % |
Total revenues | | 530 | | 523 | | 528 | | 496 | | 542 | | 2,070 | | 2,089 | | 12 | | 2 | % | 19 | | 1 | % | 46 | | 9 | % |
Banking and deposit interest expense | | 1 | | 1 | | — | | — | | — | | 1 | | 1 | | (1 | ) | # | | — | | — | | — | | — | |
Operating total net revenues | | 529 | | 522 | | 528 | | 496 | | 542 | | 2,069 | | 2,088 | | 13 | | 2 | % | 19 | | 1 | % | 46 | | 9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | 15 | | 15 | | 18 | | 16 | | 18 | | 62 | | 67 | | 3 | | 20 | % | 5 | | 8 | % | 2 | | 13 | % |
Interest credited to fixed accounts | | 36 | | 35 | | 35 | | 34 | | 39 | | 142 | | 143 | | 3 | | 8 | % | 1 | | 1 | % | 5 | | 15 | % |
Benefits, claims, losses and settlement expenses | | 266 | | 265 | | 264 | | 269 | | 295 | | 1,085 | | 1,093 | | 29 | | 11 | % | 8 | | 1 | % | 26 | | 10 | % |
Amortization of deferred acquisition costs | | 30 | | 30 | | 32 | | 17 | | 31 | | 119 | | 110 | | 1 | | 3 | % | (9 | ) | (8 | )% | 14 | | 82 | % |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
General and administrative expense | | 69 | | 70 | | 70 | | 71 | | 66 | | 275 | | 277 | | (3 | ) | (4 | )% | 2 | | 1 | % | (5 | ) | (7 | )% |
Operating expenses | | 416 | | 415 | | 419 | | 407 | | 449 | | 1,683 | | 1,690 | | 33 | | 8 | % | 7 | | — | | 42 | | 10 | % |
Pretax operating earnings | | $ | 113 | | $ | 107 | | $ | 109 | | $ | 89 | | $ | 93 | | $ | 386 | | $ | 398 | | $ | (20 | ) | (18 | )% | $ | 12 | | 3 | % | $ | 4 | | 4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax operating margin | | 21.4 | % | 20.5 | % | 20.6 | % | 17.9 | % | 17.2 | % | 18.7 | % | 19.1 | % | (4.2 | )% | | | 0.4 | % | | | (0.7 | )% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated equity | | $ | 1,710 | | $ | 1,716 | | $ | 1,703 | | $ | 1,676 | | $ | 1,693 | | $ | 1,710 | | $ | 1,693 | | $ | (17 | ) | (1 | )% | $ | (17 | ) | (1 | )% | $ | 17 | | 1 | % |
Operating return on allocated equity (1) | | 15.7 | % | 15.8 | % | 16.4 | % | 17.5 | % | 17.1 | % | 15.7 | % | 17.1 | % | 1.4 | % | | | 1.4 | % | | | (0.4 | )% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product Information | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Long Term Care | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax operating earnings | | $ | 3 | | $ | 2 | | $ | 2 | | $ | (2 | ) | $ | 5 | | $ | 32 | | $ | 7 | | $ | 2 | | 67 | % | $ | (25 | ) | (78 | )% | $ | 7 | | # | |
Allocated equity | | $ | 423 | | $ | 436 | | $ | 442 | | $ | 442 | | $ | 454 | | $ | 423 | | $ | 454 | | $ | 31 | | 7 | % | $ | 31 | | 7 | % | $ | 12 | | 3 | % |
Operating return on allocated equity (1) | | 4.3 | % | 3.5 | % | 2.8 | % | 0.8 | % | 1.2 | % | 4.3 | % | 1.2 | % | (3.1 | )% | | | (3.1 | )% | | | 0.4 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Protection excluding Long Term Care | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax operating earnings | | $ | 110 | | $ | 105 | | $ | 107 | | $ | 91 | | $ | 88 | | $ | 354 | | $ | 391 | | $ | (22 | ) | (20 | )% | $ | 37 | | 10 | % | $ | (3 | ) | (3 | )% |
Allocated equity | | $ | 1,287 | | $ | 1,280 | | $ | 1,261 | | $ | 1,234 | | $ | 1,239 | | $ | 1,287 | | $ | 1,239 | | $ | (48 | ) | (4 | )% | $ | (48 | ) | (4 | )% | $ | 5 | | — | |
Operating return on allocated equity (1) | | 20.5 | % | 20.7 | % | 21.4 | % | 23.2 | % | 22.6 | % | 20.5 | % | 22.6 | % | 2.1 | % | | | 2.1 | % | | | (0.6 | )% | | |
(1) Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.
# Variance of greater than 100%.
25
Ameriprise Financial, Inc.
Protection Segment
Fourth Quarter 2012
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | | 2011 | | 2012 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash Sales | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VUL / UL (1) | | $ | 51 | | $ | 56 | | $ | 60 | | $ | 68 | | $ | 79 | | $ | 182 | | $ | 263 | | $ | 28 | | 55 | % | $ | 81 | | 45 | % | $ | 11 | | 16 | % |
Term and whole life | | 2 | | 3 | | 3 | | 2 | | 4 | | 10 | | 12 | | 2 | | # | | 2 | | 20 | % | 2 | | # | |
Disability insurance | | 1 | | 1 | | 2 | | 1 | | 1 | | 6 | | 5 | | — | | — | | (1 | ) | (17 | )% | — | | — | |
Auto and home | | 186 | | 197 | | 200 | | 217 | | 200 | | 756 | | 814 | | 14 | | 8 | % | 58 | | 8 | % | (17 | ) | (8 | )% |
Total cash sales | | $ | 240 | | $ | 257 | | $ | 265 | | $ | 288 | | $ | 284 | | $ | 954 | | $ | 1,094 | | $ | 44 | | 18 | % | $ | 140 | | 15 | % | $ | (4 | ) | (1 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
VUL / UL Policyholder Account Balances | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 8,862 | | $ | 9,216 | | $ | 9,740 | | $ | 9,502 | | $ | 9,760 | | $ | 9,492 | | $ | 9,216 | | $ | 898 | | 10 | % | $ | (276 | ) | (3 | )% | $ | 258 | | 3 | % |
Premiums and deposits | | 231 | | 232 | | 231 | | 236 | | 260 | | 902 | | 959 | | 29 | | 13 | % | 57 | | 6 | % | 24 | | 10 | % |
Investment performance and interest | | 393 | | 575 | | (188 | ) | 307 | | 128 | | (79 | ) | 822 | | (265 | ) | (67 | )% | 901 | | # | | (179 | ) | (58 | )% |
Withdrawals and surrenders | | (269 | ) | (284 | ) | (281 | ) | (285 | ) | (287 | ) | (1,099 | ) | (1,137 | ) | (18 | ) | (7 | )% | (38 | ) | (3 | )% | (2 | ) | (1 | )% |
Other | | (1 | ) | 1 | | — | | — | | (2 | ) | — | | (1 | ) | (1 | ) | # | | (1 | ) | — | | (2 | ) | — | |
Total ending balance | | $ | 9,216 | | $ | 9,740 | | $ | 9,502 | | $ | 9,760 | | $ | 9,859 | | $ | 9,216 | | $ | 9,859 | | $ | 643 | | 7 | % | $ | 643 | | 7 | % | $ | 99 | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Premiums by Product | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Term and whole life | | $ | 13 | | $ | 12 | | $ | 13 | | $ | 12 | | $ | 12 | | $ | 53 | | $ | 49 | | $ | (1 | ) | (8 | )% | $ | (4 | ) | (8 | )% | $ | — | | — | |
Disability insurance | | 40 | | 40 | | 40 | | 40 | | 39 | | 162 | | 159 | | (1 | ) | (3 | )% | (3 | ) | (2 | )% | (1 | ) | (3 | )% |
Long term care | | 31 | | 28 | | 29 | | 29 | | 30 | | 118 | | 116 | | (1 | ) | (3 | )% | (2 | ) | (2 | )% | 1 | | 3 | % |
Auto and home | | 188 | | 189 | | 192 | | 198 | | 202 | | 727 | | 781 | | 14 | | 7 | % | 54 | | 7 | % | 4 | | 2 | % |
Intercompany premiums | | 4 | | 4 | | 4 | | 4 | | 4 | | 16 | | 16 | | — | | — | | — | | — | | — | | — | |
Total premiums by product | | $ | 276 | | $ | 273 | | $ | 278 | | $ | 283 | | $ | 287 | | $ | 1,076 | | $ | 1,121 | | $ | 11 | | 4 | % | $ | 45 | | 4 | % | $ | 4 | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Auto and Home Insurance | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Policy count (thousands) | | 696 | | 708 | | 725 | | 742 | | 756 | | 696 | | 756 | | 60 | | 9 | % | 60 | | 9 | % | 14 | | 2 | % |
Loss ratio | | 81.7 | % | 80.4 | % | 85.0 | % | 82.8 | % | 97.1 | % | 88.1 | % | 86.4 | % | 15.4 | % | | | (1.7 | )% | | | 14.3 | % | | |
Expense ratio | | 16.4 | % | 15.5 | % | 15.0 | % | 14.8 | % | 16.0 | % | 15.7 | % | 15.3 | % | (0.4 | )% | | | (0.4 | )% | | | 1.2 | % | | |
Combined ratio | | 98.1 | % | 95.9 | % | 100.0 | % | 97.6 | % | 113.1 | % | 103.8 | % | 101.7 | % | 15.0 | % | | | (2.1 | )% | | | 15.5 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
DAC Rollforward | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Life and Health | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 816 | | $ | 814 | | $ | 809 | | $ | 797 | | $ | 793 | | $ | 844 | | $ | 814 | | $ | (23 | ) | (3 | )% | $ | (30 | ) | (4 | )% | $ | (4 | ) | (1 | )% |
Capitalization | | 18 | | 16 | | 18 | | 17 | | 22 | | 69 | | 73 | | 4 | | 22 | % | 4 | | 6 | % | 5 | | 29 | % |
Amortization per income statement | | (19 | ) | (19 | ) | (21 | ) | (6 | ) | (19 | ) | (77 | ) | (65 | ) | — | | — | | 12 | | 16 | % | (13 | ) | # | |
Other | | (1 | ) | (2 | ) | (9 | ) | (15 | ) | 1 | | (22 | ) | (25 | ) | 2 | | # | | (3 | ) | (14 | )% | 16 | | # | |
Total ending balance | | $ | 814 | | $ | 809 | | $ | 797 | | $ | 793 | | $ | 797 | | $ | 814 | | $ | 797 | | $ | (17 | ) | (2 | )% | $ | (17 | ) | (2 | )% | $ | 4 | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Life Insurance in Force | | $ | 191,262 | | $ | 190,872 | | $ | 190,746 | | $ | 190,862 | | $ | 191,447 | | $ | 191,262 | | $ | 191,447 | | $ | 185 | | — | | $ | 185 | | — | | $ | 585 | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Amount at Risk | | $ | 45,544 | | $ | 44,360 | | $ | 43,874 | | $ | 43,077 | | $ | 42,758 | | $ | 45,544 | | $ | 42,758 | | $ | (2,786 | ) | (6 | )% | $ | (2,786 | ) | (6 | )% | $ | (319 | ) | (1 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Policyholder Reserves | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VUL / UL | | $ | 8,290 | | $ | 8,818 | | $ | 8,577 | | $ | 8,840 | | $ | 8,950 | | $ | 8,290 | | $ | 8,950 | | $ | 660 | | 8 | % | $ | 660 | | 8 | % | $ | 110 | | 1 | % |
Term and whole life | | 237 | | 236 | | 235 | | 233 | | 231 | | 237 | | 231 | | (6 | ) | (3 | )% | (6 | ) | (3 | )% | (2 | ) | (1 | )% |
Disability insurance | | 521 | | 525 | | 526 | | 527 | | 524 | | 521 | | 524 | | 3 | | 1 | % | 3 | | 1 | % | (3 | ) | (1 | )% |
Long term care and other | | 2,569 | | 2,590 | | 2,557 | | 2,581 | | 2,594 | | 2,569 | | 2,594 | | 25 | | 1 | % | 25 | | 1 | % | 13 | | 1 | % |
Auto and home loss and LAE reserves | | 350 | | 344 | | 345 | | 339 | | 356 | | 350 | | 356 | | 6 | | 2 | % | 6 | | 2 | % | 17 | | 5 | % |
Total net policyholder reserves | | $ | 11,967 | | $ | 12,513 | | $ | 12,240 | | $ | 12,520 | | $ | 12,655 | | $ | 11,967 | | $ | 12,655 | | $ | 688 | | 6 | % | $ | 688 | | 6 | % | $ | 135 | | 1 | % |
(1) Includes lump sum deposits.
# Variance of greater than 100%.
26
Statistical Supplement Package
(unaudited)
Fourth Quarter 2012
Corporate & Other Segment
27
Ameriprise Financial, Inc.
Corporate & Other Segment
Fourth Quarter 2012
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | | 2011 | | 2012 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Operating Income Statements | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | (1 | ) | $ | — | | $ | — | | $ | (1 | ) | $ | — | | $ | (1 | ) | $ | (1 | ) | $ | 1 | | # | | $ | — | | — | | $ | 1 | | # | |
Distribution fees | | — | | — | | — | | — | | 1 | | — | | 1 | | 1 | | — | | 1 | | — | | 1 | | — | |
Net investment income | | (7 | ) | 4 | | 4 | | 5 | | (4 | ) | (27 | ) | 9 | | 3 | | 43 | % | 36 | | # | | (9 | ) | # | |
Premiums | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Other revenues | | 1 | | 4 | | 3 | | 1 | | 2 | | 30 | | 10 | | 1 | | # | | (20 | ) | (67 | )% | 1 | | # | |
Total revenues | | (7 | ) | 8 | | 7 | | 5 | | (1 | ) | 2 | | 19 | | 6 | | 86 | % | 17 | | # | | (6 | ) | # | |
Banking and deposit interest expense | | (1 | ) | — | | — | | — | | (1 | ) | (1 | ) | (1 | ) | — | | — | | — | | — | | (1 | ) | — | |
Operating total net revenues | | (6 | ) | 8 | | 7 | | 5 | | — | | 3 | | 20 | | 6 | | # | | 17 | | # | | (5 | ) | # | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | — | | — | | — | | — | | — | | 1 | | — | | — | | — | | (1 | ) | # | | — | | — | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Amortization of deferred acquisition costs | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Interest and debt expense | | 23 | | 22 | | 24 | | 24 | | 24 | | 95 | | 94 | | 1 | | 4 | % | (1 | ) | (1 | )% | — | | — | |
General and administrative expense | | 46 | | 51 | | 50 | | 38 | | 57 | | 148 | | 196 | | 11 | | 24 | % | 48 | | 32 | % | 19 | | 50 | % |
Operating expenses | | 69 | | 73 | | 74 | | 62 | | 81 | | 244 | | 290 | | 12 | | 17 | % | 46 | | 19 | % | 19 | | 31 | % |
Pretax operating loss | | $ | (75 | ) | $ | (65 | ) | $ | (67 | ) | $ | (57 | ) | $ | (81 | ) | $ | (241 | ) | $ | (270 | ) | $ | (6 | ) | (8 | )% | $ | (29 | ) | (12 | )% | $ | (24 | ) | (42 | )% |
# Variance of greater than 100%.
28
Ameriprise Financial, Inc.
Eliminations (1)
Fourth Quarter 2012
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 4Q | | YTD Chg - 4Q | | Seq Qtr Chg - 4Q | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | | 2011 | | 2012 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Operating Income Statements | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | (29 | ) | $ | (30 | ) | $ | (32 | ) | $ | (32 | ) | $ | (31 | ) | $ | (115 | ) | $ | (125 | ) | $ | (2 | ) | (7 | )% | $ | (10 | ) | (9 | )% | $ | 1 | | 3 | % |
Distribution fees | | (277 | ) | (279 | ) | (270 | ) | (274 | ) | (291 | ) | (1,133 | ) | (1,114 | ) | (14 | ) | (5 | )% | 19 | | 2 | % | (17 | ) | (6 | )% |
Net investment income | | — | | — | | — | | — | | — | | (1 | ) | — | | — | | — | | 1 | | # | | — | | — | |
Premiums | | (5 | ) | (4 | ) | (4 | ) | (4 | ) | (4 | ) | (17 | ) | (16 | ) | 1 | | 20 | % | 1 | | 6 | % | — | | — | |
Other revenues | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Total revenues | | (311 | ) | (313 | ) | (306 | ) | (310 | ) | (326 | ) | (1,266 | ) | (1,255 | ) | (15 | ) | (5 | )% | 11 | | 1 | % | (16 | ) | (5 | )% |
Banking and deposit interest expense | | (2 | ) | (1 | ) | (1 | ) | — | | — | | (4 | ) | (2 | ) | 2 | | # | | 2 | | 50 | % | — | | — | |
Operating total net revenues | | (309 | ) | (312 | ) | (305 | ) | (310 | ) | (326 | ) | (1,262 | ) | (1,253 | ) | (17 | ) | (6 | )% | 9 | | 1 | % | (16 | ) | (5 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | (295 | ) | (297 | ) | (289 | ) | (295 | ) | (312 | ) | (1,202 | ) | (1,193 | ) | (17 | ) | (6 | )% | 9 | | 1 | % | (17 | ) | (6 | )% |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Amortization of deferred acquisition costs | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
General and administrative expense | | (14 | ) | (15 | ) | (16 | ) | (15 | ) | (14 | ) | (60 | ) | (60 | ) | — | | — | | — | | — | | 1 | | 7 | % |
Operating expenses | | (309 | ) | (312 | ) | (305 | ) | (310 | ) | (326 | ) | (1,262 | ) | (1,253 | ) | (17 | ) | (6 | )% | 9 | | 1 | % | (16 | ) | (5 | )% |
Pretax operating earnings | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | — | | $ | — | | — | | $ | — | | — | |
(1) The majority of the amounts represent the impact of inter-segment transfer pricing for both revenues and expenses.
# Variance of greater than 100%.
29
Statistical Supplement Package
(unaudited)
Fourth Quarter 2012
Balance Sheet and Ratings Information
30
Ameriprise Financial, Inc.
Consolidated Balance Sheets
Fourth Quarter 2012
(in millions, unaudited) | | December 31, 2011 | | March 31, 2012 | | June 30, 2012 | | September 30, 2012 | | December 31, 2012 | |
| | | | | | | | | | | |
Assets | | | | | | | | | | | |
Cash and cash equivalents | | $ | 2,781 | | $ | 2,312 | | $ | 2,721 | | $ | 3,325 | | $ | 2,371 | |
Cash of consolidated investment entities | | 470 | | 562 | | 551 | | 607 | | 579 | |
Investments (1) | | 39,953 | | 40,291 | | 40,034 | | 39,815 | | 36,877 | |
Investments of consolidated investment entities | | 4,789 | | 4,815 | | 4,690 | | 4,587 | | 4,370 | |
Separate account assets | | 66,780 | | 71,635 | | 69,303 | | 71,919 | | 72,397 | |
Receivables (1) | | 4,381 | | 4,286 | | 4,339 | | 4,415 | | 4,220 | |
Receivables of consolidated investment entities | | 59 | | 43 | | 38 | | 56 | | 95 | |
Deferred acquisition costs | | 2,440 | | 2,472 | | 2,431 | | 2,397 | | 2,399 | |
Restricted and segregated cash and investments | | 1,793 | | 1,875 | | 1,763 | | 2,060 | | 2,538 | |
Other assets | | 7,751 | | 7,429 | | 8,319 | | 8,224 | | 7,667 | |
Other assets of consolidated investment entities | | 1,110 | | 1,037 | | 1,081 | | 1,159 | | 1,216 | |
Total Assets | | $ | 132,307 | | $ | 136,757 | | $ | 135,270 | | $ | 138,564 | | $ | 134,729 | |
| | | | | | | | | | | |
Liabilities | | | | | | | | | | | |
Future policy benefits and claims | | $ | 31,710 | | $ | 30,994 | | $ | 31,675 | | $ | 31,595 | | $ | 31,217 | |
Separate account liabilities | | 66,780 | | 71,635 | | 69,303 | | 71,919 | | 72,397 | |
Customer deposits | | 9,850 | | 9,961 | | 10,079 | | 10,048 | | 6,526 | |
Short-term borrowings | | 504 | | 504 | | 498 | | 500 | | 501 | |
Long-term debt | | 2,393 | | 2,381 | | 2,403 | | 2,413 | | 2,403 | |
Debt of consolidated investment entities | | 5,178 | | 5,231 | | 5,213 | | 5,221 | | 4,981 | |
Accounts payable and accrued expenses | | 1,048 | | 887 | | 978 | | 1,145 | | 1,228 | |
Accounts payable and accrued expenses of consolidated investment entities | | 17 | | 20 | | 24 | | 25 | | 96 | |
Other liabilities | | 5,033 | | 5,272 | | 5,376 | | 5,779 | | 5,467 | |
Other liabilities of consolidated investment entities | | 100 | | 123 | | 108 | | 98 | | 201 | |
Total Liabilities | | 122,613 | | 127,008 | | 125,657 | | 128,743 | | 125,017 | |
| | | | | | | | | | | |
Equity | | | | | | | | | | | |
Ameriprise Financial | | | | | | | | | | | |
Common shares ($.01 par) | | 3 | | 3 | | 3 | | 3 | | 3 | |
Additional paid-in capital | | 6,237 | | 6,237 | | 6,287 | | 6,363 | | 6,503 | |
Retained earnings | | 5,603 | | 5,845 | | 5,990 | | 6,087 | | 6,381 | |
Appropriated retained earnings of consolidated investment entities | | 428 | | 440 | | 394 | | 390 | | 336 | |
Treasury stock | | (4,034 | ) | (4,261 | ) | (4,611 | ) | (4,953 | ) | (5,325 | ) |
Accumulated other comprehensive income, net of tax | | 751 | | 851 | | 942 | | 1,267 | | 1,194 | |
Total Ameriprise Financial Shareholders’ Equity | | 8,988 | | 9,115 | | 9,005 | | 9,157 | | 9,092 | |
| | | | | | | | | | | |
Noncontrolling interests | | 706 | | 634 | | 608 | | 664 | | 620 | |
Total Equity | | 9,694 | | 9,749 | | 9,613 | | 9,821 | | 9,712 | |
Total Liabilities and Equity | | $ | 132,307 | | $ | 136,757 | | $ | 135,270 | | $ | 138,564 | | $ | 134,729 | |
(1) In the fourth quarter of 2012, consumer loans were reclassified from Receivables to Investments. All prior periods have been restated.
31
Ameriprise Financial, Inc.
Capital and Ratings Information
Fourth Quarter 2012
(in millions unless otherwise noted, unaudited) | | December 31, 2011 | | March 31, 2012 | | June 30, 2012 | | September 30, 2012 | | December 31, 2012 | |
| | | | | | | | | | | |
Long-term Debt Summary | | | | | | | | | | | |
Senior notes | | $ | 2,099 | | $ | 2,087 | | $ | 2,109 | | $ | 2,119 | | $ | 2,109 | |
Junior subordinated notes | | 294 | | 294 | | 294 | | 294 | | 294 | |
Total Ameriprise Financial long-term debt | | 2,393 | | 2,381 | | 2,403 | | 2,413 | | 2,403 | |
Non-recourse debt of consolidated investment entities | | 5,178 | | 5,231 | | 5,213 | | 5,221 | | 4,981 | |
Total long-term debt | | $ | 7,571 | | $ | 7,612 | | $ | 7,616 | | $ | 7,634 | | $ | 7,384 | |
| | | | | | | | | | | |
Total Ameriprise Financial long-term debt | | $ | 2,393 | | $ | 2,381 | | $ | 2,403 | | $ | 2,413 | | $ | 2,403 | |
Fair value of hedges and unamortized discount | | (149 | ) | (137 | ) | (159 | ) | (169 | ) | (159 | ) |
Total Ameriprise Financial long-term debt excluding fair value of hedges and unamortized discount (1) | | $ | 2,244 | | $ | 2,244 | | $ | 2,244 | | $ | 2,244 | | $ | 2,244 | |
| | | | | | | | | | | |
Total equity (3) | | $ | 9,694 | | $ | 9,749 | | $ | 9,613 | | $ | 9,821 | | $ | 9,712 | |
Noncontrolling interests | | (706 | ) | (634 | ) | (608 | ) | (664 | ) | (620 | ) |
Total Ameriprise Financial shareholders’ equity | | 8,988 | | 9,115 | | 9,005 | | 9,157 | | 9,092 | |
Equity of consolidated investment entities | | (402 | ) | (413 | ) | (370 | ) | (365 | ) | (312 | ) |
Total Ameriprise Financial shareholders’ equity excluding CIEs (1) | | $ | 8,586 | | $ | 8,702 | | $ | 8,635 | | $ | 8,792 | | $ | 8,780 | |
| | | | | | | | | | | |
Total Ameriprise Financial capital | | $ | 11,381 | | $ | 11,496 | | $ | 11,408 | | $ | 11,570 | | $ | 11,495 | |
Total Ameriprise Financial capital excluding fair value of hedges, unamortized discount and equity of CIEs (1) | | $ | 10,830 | | $ | 10,946 | | $ | 10,879 | | $ | 11,036 | | $ | 11,024 | |
| | | | | | | | | | | |
Debt to capital | | | | | | | | | | | |
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital | | 21.0 | % | 20.7 | % | 21.1 | % | 20.9 | % | 20.9 | % |
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital excluding fair value of hedges, unamortized discount and equity of CIEs (1) | | 20.7 | % | 20.5 | % | 20.6 | % | 20.3 | % | 20.4 | % |
Ratings (as of December 31, 2012 earnings release date) | | A.M. Best Company | | Standard & Poor’s Rating Services | | Moody’s Investors Service, Inc. | |
Claims Paying Ratings (2) | | | | | | | |
RiverSource Life Insurance Company | | A+ | | AA- | | Aa3 | |
IDS Property Casualty Ins. Company | | A | | N/R | | N/R | |
| | | | | | | |
Debt Ratings (2) | | | | | | | |
Ameriprise Financial, Inc. | | a- | | A | | A3 | |
(1) | See non-GAAP financial information on pg 34. Non-GAAP financial measure reconciliations can be found on page 45. |
(2) | For the most current ratings information, please see the individual rating agency’s website. |
(3) | Includes accumulated other comprehensive income, net of tax. |
| N/R - Not Rated. |
32
Ameriprise Financial, Inc.
Ameriprise Financial Investments (1)
Fourth Quarter 2012
(in millions unless otherwise noted, unaudited) | | December 31, 2011 | | March 31, 2012 | | June 30, 2012 | | September 30, 2012 | | December 31, 2012 | |
| | | | | | | | | | | |
Cash and cash equivalents | | $ | 2,781 | | $ | 2,312 | | $ | 2,721 | | $ | 3,325 | | $ | 2,371 | |
| | | | | | | | | | | |
Investments - Ending Balances | | | | | | | | | | | |
Available-for-Sale Securities | | | | | | | | | | | |
Corporate debt securities | | 18,040 | | 18,393 | | 18,425 | | 18,787 | | 18,815 | |
| | | | | | | | | | | |
Residential mortgage backed securities (2) | | 7,676 | | 7,660 | | 7,531 | | 7,193 | | 5,429 | |
Commercial mortgage backed securities | | 4,719 | | 4,584 | | 4,442 | | 4,270 | | 3,419 | |
Asset backed securities (2) | | 1,705 | | 1,754 | | 1,718 | | 1,651 | | 1,275 | |
Total mortgage and other asset backed securities | | 14,100 | | 13,998 | | 13,691 | | 13,114 | | 10,123 | |
| | | | | | | | | | | |
State and municipal obligations | | 2,130 | | 2,113 | | 2,172 | | 2,229 | | 2,239 | |
US government and agencies obligations | | 71 | | 68 | | 68 | | 61 | | 58 | |
Foreign government bonds and obligations | | 144 | | 205 | | 216 | | 223 | | 224 | |
Common and preferred stocks | | 9 | | 11 | | 10 | | 11 | | 13 | |
Other AFS | | 11 | | 17 | | 8 | | — | | — | |
Total other | | 2,365 | | 2,414 | | 2,474 | | 2,524 | | 2,534 | |
Total available-for-sale securities | | 34,505 | | 34,805 | | 34,590 | | 34,425 | | 31,472 | |
| | | | | | | | | | | |
Commercial mortgage loans | | 2,624 | | 2,650 | | 2,584 | | 2,570 | | 2,606 | |
Allowance for loan losses | | (35 | ) | (35 | ) | (33 | ) | (29 | ) | (29 | ) |
Commercial mortgage loans, net | | 2,589 | | 2,615 | | 2,551 | | 2,541 | | 2,577 | |
| | | | | | | | | | | |
Residential mortgage loans | | 1,146 | | 1,159 | | 1,134 | | 1,089 | | 1,039 | |
Allowance for loan losses | | (8 | ) | (9 | ) | (8 | ) | (8 | ) | (7 | ) |
Residential mortgage loans, net (3) | | 1,138 | | 1,150 | | 1,126 | | 1,081 | | 1,032 | |
| | | | | | | | | | | |
Policy loans | | 742 | | 741 | | 750 | | 752 | | 754 | |
Other investments (4) | | 979 | | 980 | | 1,017 | | 1,016 | | 1,042 | |
Total investments | | 39,953 | | 40,291 | | 40,034 | | 39,815 | | 36,877 | |
Total cash, cash equivalents and investments | | $ | 42,734 | | $ | 42,603 | | $ | 42,755 | | $ | 43,140 | | $ | 39,248 | |
| | | | | | | | | | | |
Net unrealized gain Available-for-Sale Securities | | $ | 2,058 | | $ | 2,187 | | $ | 2,434 | | $ | 3,092 | | $ | 2,962 | |
| | | | | | | | | | | |
AFS Fixed Maturity Asset Quality - % | | | | | | �� | | | | | |
AAA | | 35 | % | 34 | % | 33 | % | 32 | % | 26 | % |
AA | | 6 | % | 6 | % | 6 | % | 6 | % | 6 | % |
AFS securities AA and above | | 41 | % | 40 | % | 39 | % | 38 | % | 32 | % |
A | | 16 | % | 17 | % | 18 | % | 18 | % | 19 | % |
BBB | | 38 | % | 38 | % | 38 | % | 39 | % | 43 | % |
Below investment grade | | 5 | % | 5 | % | 5 | % | 5 | % | 6 | % |
Total AFS fixed maturity asset quality - % | | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
| | | | | | | | | | | |
Fair Value of Below Investment Grade Investments as a % of Total Cash and Investments | | 5 | % | 5 | % | 5 | % | 5 | % | 6 | % |
(1) | Investments excluding investments of CIEs. |
(2) | In the fourth quarter of 2012, sub-prime holdings were reclassified from Asset backed securities to Residential mortgage backed securities. All prior periods have been restated. |
(3) | In the fourth quarter of 2012, residential mortgage loans were reclassified from Receivables to Investments. All prior periods have been restated. |
(4) | In the fourth quarter of 2012, other consumer loans were reclassified from Receivables to Other investments. All prior periods have been restated. |
33
Ameriprise Financial, Inc.
Non-GAAP Financial Information
Ameriprise Financial, Inc. (the Company) prepares its financial statements in accordance with accounting principles generally accepted in the United States (U.S. GAAP). This report includes information on both a U.S. GAAP and non-GAAP basis. Management believes that the presentation of these non-GAAP financial measures best reflect the underlying performance of the Company and facilitate a more meaningful trend analysis. Management uses certain of these non-GAAP measures to evaluate our financial performance on a basis comparable to that used by some securities analysts and investors. Also, certain of these non-GAAP measures are taken into consideration, to varying degrees, for purposes of business planning and analysis and certain compensation-related matters. See the reconciliations on pages 6, 15, 44 and 45.
These non-GAAP measures include:
· Adjusted net pretax operating margin;
· Adjusted operating earnings;
· Adjusted operating revenues;
· Ameriprise Financial shareholders’ equity excluding AOCI;
· Ameriprise Financial shareholders’ equity excluding CIEs;
· Ameriprise Financial shareholders’ equity excluding CIEs and AOCI;
· Basic operating earnings per share;
· Effective tax rate excluding noncontrolling interests;
· Operating earnings;
· Operating earnings per diluted share;
· Operating effective tax rate;
· Operating return on equity excluding AOCI;
· Operating total net revenues;
· Pretax operating earnings;
· Pretax operating margin;
· Return on equity excluding AOCI;
· Total Ameriprise Financial capital excluding fair value of hedges, unamortized discount and equity of CIEs;
· Total Ameriprise Financial long-term debt excluding fair value of hedges and unamortized discount;
· Total Ameriprise Financial long-term debt to total Ameriprise Financial capital excluding fair value of hedges, unamortized discount and equity of CIEs
Reclassification
Certain prior period information has been restated to conform to current period presentation.
34
Ameriprise Financial, Inc.
Glossary of Selected Terminology - Segments
Advice & Wealth Management - This segment provides financial planning and advice, as well as full service brokerage services, primarily to retail clients through our financial advisors. Ameriprise financial advisors utilize a diversified selection of both affiliated and non-affiliated products to help clients meet their financial needs. A significant portion of revenues in this segment is fee-based, driven by the level of client assets, which is impacted by both market movements and net asset flows. We also earn net investment income on invested assets primarily from certificate products. This segment also includes the results of operation for Ameriprise Bank, FSB, which terminated its deposit-taking and credit-originating activities in the fourth quarter of 2012. This segment earns revenues (distribution fees) for distributing non-affiliated products and earns intersegment revenues (distribution fees) for distributing our affiliated products and services to our retail clients. Intersegment expenses for this segment include expenses for investment management services provided by our Asset Management segment.
Asset Management - This segment provides investment advice and investment products to retail and institutional clients. Columbia Management Investment Advisers, LLC (Columbia) predominantly provides U.S. domestic products and services and Threadneedle Asset Management Holdings Sàrl (Threadneedle) predominantly provides international investment products and services. Columbia retail products are distributed through our Advice & Wealth Management segment and also through unaffiliated third party financial institutions, including distribution through Bank of America and its affiliates. Institutional products and services are primarily sold through our institutional sales force. Threadneedle retail products are primarily distributed through third parties. Retail products include mutual funds and variable product funds underlying insurance and annuity separate accounts. Institutional asset management services are designed to meet specific client objectives and may involve a range of products including those that focus on traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective 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. In addition to the products and services provided to third party clients, management teams serving our Asset Management segment provide all intercompany asset management services. The fees for all such services are reflected within the Asset Management segment results through intersegment transfer pricing. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management, Annuities and Protection segments.
Annuities - This segment provides variable and fixed annuity products of RiverSource Life companies to retail clients. Our variable annuity products are distributed through affiliated financial advisors. Our fixed annuity products are distributed through affiliated advisors as well as unaffiliated advisors 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 invested 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 invested 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 certain 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 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 Ameriprise 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 we receive to assume insurance-related risk. We earn net investment income on invested 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 certain 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.
35
Ameriprise Financial, Inc.
Glossary of Selected Terminology
Adjusted Net Pretax Operating Margin - An internal measure designed to calculate operating margins similar to how asset management companies define operating margins. A ratio representing adjusted operating earnings as a percentage of adjusted operating revenues for the asset management segment.
Adjusted Operating Earnings - Asset management segment pretax operating earnings less operating net investment income plus amortization of intangibles.
Adjusted Operating Revenues - Asset management segment operating total net revenues less pass through distribution revenue and subadvisory and other pass through revenues.
Affiliated General Account Assets - Balance sheet assets from various affiliates managed and reported by Columbia.
Allocated Equity - The internal allocation of consolidated Ameriprise Financial shareholders’ equity, excluding accumulated other comprehensive income (loss) and CIEs is based on management’s best estimate of capital required by the business, and may include capital for contingencies. 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. Allocated equity is not adjusted for non-operating items except for CIEs.
Alternative Assets - Assets reported by the Company that include Hedge Funds and Collateralized Debt Obligations (“CDO”).
Ameriprise Financial - Ameriprise Financial includes ownership interests in subsidiaries that are attributable, directly or indirectly, to Ameriprise Financial, Inc. and excludes noncontrolling interests.
AOCI - Accumulated other comprehensive income (loss), net of tax.
Assets Under Administration - Assets under administration include assets for which we provide administrative services such as client assets invested in other companies’ products that we offer outside of our wrap accounts. These assets include those held in clients’ brokerage accounts. We generally record fees received from administered assets as distribution fees. We do not exercise management discretion over these assets and do not earn a management fee. These assets are not reported on our Consolidated Balance Sheets. Assets under administration also include certain assets on our Consolidated Balance Sheets for which we do not provide investment management services and do not recognize management fees, such as investments in non-affiliated funds held in the separate accounts of our life insurance subsidiaries. These assets do not include assets under advisement, for which we provide model portfolios but do not have full discretionary investment authority.
Assets Under Management - Assets under management include assets for which we provide investment management services, such as the assets of the Columbia funds and Threadneedle funds, assets of institutional clients, and client assets held in wrap and personal trust accounts as well as assets managed by sub-advisors selected by us. Assets under management also include certain assets on our Consolidated Balance Sheets for which we provide investment management services and recognize management fees in our Asset Management segment, such as the assets of the general account, RiverSource Variable Product funds held in the separate accounts of our life insurance subsidiaries, and client assets of CIEs. These assets do not include assets under advisement, for which we provide model portfolios, but do not have full discretionary investment authority.
Auto & Home Insurance - Personal auto and home protection products marketed directly to customers through marketing affiliates such as Costco Wholesale Corporation and Ford Motor Credit Company. We sell these products through our auto and home subsidiary, IDS Property Casualty Insurance Company (doing business as Ameriprise Auto & Home Insurance).
Cash Sales - Cash sales are the dollar value volume indicator that captures gross new cash inflows which generate product revenue streams to our company. This includes primarily “client initiated” activity that results in an incremental increase in assets or premiums in force (but doesn’t need to result in time of sale revenue), or activity that doesn’t increase assets or premiums in force, but generates “fee revenue”.
Consolidated Investment Entities (“CIEs”) - CIEs include certain property and hedge funds as well as the variable interest entities required to be consolidated under current accounting standards.
DAC Rollforward Other - We record unrealized securities gains (losses) in accumulated other comprehensive income (loss), net of income tax provision (benefit) and net of adjustments in other asset and liability balances, such as DAC, to reflect the expected impact on their carrying values had the unrealized securities gains (losses) been realized as of the respective balance sheet dates.
Deferred Acquisition Costs and Amortization - Deferred acquisition costs (“DAC”) represent the direct costs of acquiring new protection and annuity contracts, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of life, disability income, long term care, auto, and home insurance and annuities. DAC also includes deferred direct sales commissions on certain mutual fund products. These costs are deferred to the extent they are directly related to the acquisition of new business and are recoverable from future profits.
Life Insurance in Force - The total amount of all life insurance death benefits currently insured by our company.
Market Impact on Variable Annuity Guaranteed Living Benefits - The impact of changes in financial market conditions on benefit costs associated with variable annuity guaranteed living benefits accounted for as embedded derivatives, net of changes in associated economic hedge values and net of related impacts on DAC and DSIC amortization. This market impact includes the risk margin and nonperformance spread impact.
Net Amount at Risk - Life insurance in force less policyholder reserves net of reinsurance.
Net Flows - Sales less redemptions and miscellaneous flows which may include reinvested dividends.
Net New Flows - Mutual or VP/VIT fund inflows less outflows.
Operating Earnings - Net income attributable to Ameriprise Financial less integration/restructuring charges, net of tax, market impact on variable annuity guaranteed living benefits, net of tax, income (loss) from discontinued operations, net of tax and realized gains, net of tax, plus realized losses, net of tax.
Operating Expenses - Total expenses less integration/restructuring charges, market impact on variable annuity guaranteed living benefits and expense from consolidated investment entities.
Operating Net Investment Income - Net investment income minus net realized gains (losses) and net investment income from consolidated investment entities.
Operating Return on Allocated Equity - Calculated using operating earnings subject to the quarterly operating effective tax rate for the last four quarters in the numerator and the average allocated equity as of the last day of the trailing four quarters and current quarter in the denominator.
Operating Total Net Revenues - Total net revenues less realized gains plus realized losses less revenue from consolidated investment entities and integration/restructuring.
Pretax Operating Earnings - Income from continuing operations before income tax provision plus or minus net realized gains (losses) plus integration/restructuring charges plus market impact on variable annuity guaranteed living benefits minus pretax income (loss) from consolidated investment entities.
Pretax Operating Margin - A ratio representing pretax operating earnings as a percentage of operating total net revenues.
Pretax Income (Loss) Margin - A ratio representing pretax income (loss) as a percentage of total net revenues.
Risk Margin and Nonperformance Spread Impact - The portion of the market impact on variable annuity guaranteed living benefits related to liability valuation adjustments made in accordance with Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value Measurements and Disclosures (“ASC 820”) that management considers to be non-economic, including the impact of discounting projected benefits at a rate reflecting a current estimate of RiverSource Life’s nonperformance spread.
Separate Account - Represents assets and liabilities that are maintained and established primarily for the purpose of funding variable annuity and insurance products. The assets of the separate account are only available to fund the liabilities of the variable annuity contract holders and others with contracts requiring premiums or other deposits to the separate account. Clients elect to invest premiums in stock, bond and/or money market funds depending on their risk tolerance. All investment performance, net of fees, is passed through to the client.
Threadneedle - Threadneedle Asset Management Holdings Sarl is a holding company for the London-based Threadneedle companies, which provide investment management products and services.
Total Ameriprise Financial Capital - Total Ameriprise Financial shareholders’ equity plus total Ameriprise Financial long-term debt. Total Ameriprise Financial capital is also presented excluding fair value of hedges, unamortized discount and equity of CIEs.
Total Ameriprise Financial Long-term Debt to Total Ameriprise Financial Capital Ratio - A ratio comprised of total Ameriprise Financial long-term debt divided by Ameriprise Financial capital. We also present total Ameriprise Financial long-term debt to total Ameriprise Financial capital ratios excluding fair value of hedges, unamortized discount and equity of consolidated investment entities.
Wrap Accounts - Wrap accounts enable our clients to purchase other securities such as mutual funds in connection with investment advisory fee-based “wrap account” programs or services. We offer clients the opportunity to select products that include affiliated and non-affiliated funds. We currently offer both discretionary and non-discretionary investment advisory wrap accounts. In a discretionary wrap account, an unaffiliated investment advisor or our investment management subsidiary, Columbia Management Investment Advisers, LLC, chooses the underlying investments in the portfolio on behalf of the client. In a non-discretionary wrap account, the client chooses the underlying investments in the portfolio based, to the extent the client elects, in part or whole on the recommendations of their financial advisor. Investors in our wrap accounts generally pay an asset-based fee based on the assets held in their wrap accounts. These investors also pay any related fees or costs included in the underlying securities held in that account, such as underlying mutual fund operating expenses and Rule 12b-1 fees.
36
Exhibit A
Statistical Supplement Package
(unaudited)
Fourth Quarter 2012
Disclosed Items
37
Ameriprise Financial, Inc.
Disclosed Items
4 Qtr 2012
Excluded from Operating Earnings
| | Advice & Wealth Management | | Annuities | | Corporate and Eliminations | |
| | | | | | Market Impact on | | | | | | | |
| | Securities | | Securities | | VA Guaranteed | | Securities | | | | Restructuring | |
(in millions, unaudited) | | Gains/(Losses) (1) | | Gains/(Losses) (1) | | Living Benefits (2)(7) | | Gains/(Losses) (1) | | CIEs (3) | | Charges (4) | |
Revenues | | | | | | | | | | | | | |
Management and financial advice fees | | $ | — | | $ | — | | $ | — | | $ | — | | $ | (11 | ) | $ | — | |
Distribution fees | | — | | — | | — | | — | | — | | — | |
Net investment income | | 84 | | (3 | ) | — | | 1 | | (8 | ) | — | |
Premiums | | — | | — | | — | | — | | — | | — | |
Other revenues | | — | | — | | — | | — | | 10 | | 5 | |
Total revenues | | 84 | | (3 | ) | — | | 1 | | (9 | ) | 5 | |
Banking and deposit interest expense | | — | | — | | — | | — | | — | | 1 | |
Total net revenues | | 84 | | (3 | ) | — | | 1 | | (9 | ) | 4 | |
| | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | |
Distribution expenses | | — | | — | | — | | — | | — | | — | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | 57 | | — | | — | | — | |
Amortization of deferred acquisition costs | | — | | — | | (12 | ) | — | | — | | — | |
Interest and debt expense | | — | | — | | — | | — | | 42 | | — | |
General and administrative expense | | — | | — | | — | | — | | 6 | | 9 | |
Total expenses | | — | | — | | 45 | | — | | 48 | | 9 | |
Pretax segment income (loss) | | 84 | | (3 | ) | (45 | ) | 1 | | (57 | ) | (5 | ) |
Less: Net income (loss) attributable to noncontrolling interest | | — | | — | | — | | — | | (57 | ) | — | |
Pretax segment gain (loss) attributable to Ameriprise Financial | | $ | 84 | | $ | (3 | ) | $ | (45 | ) | $ | 1 | | $ | — | | $ | (5 | ) |
Included in Operating Earnings
| | Annuities | | Protection | | Corporate and Eliminations | | Consolidated | | | |
| | Market | | | | Auto & Home | | Settlement with | | | | | |
| | Impacts | | Valuation | | Catastrophe | | Third Party | | | | | |
(in millions, unaudited) | | to DAC/DSIC (5) | | Model Revisions (6)(7) | | Losses (8) | | Service Provider (9) | | Tax Adjustment (10) | | | |
Revenues | | | | | | | | | | | | | |
Management and financial advice fees | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | |
Distribution fees | | — | | — | | — | | — | | — | | | |
Net investment income | | — | | — | | — | | — | | — | | | |
Premiums | | — | | — | | — | | — | | — | | | |
Other revenues | | — | | — | | — | | — | | — | | | |
Total revenues | | — | | — | | — | | — | | — | | | |
Banking and deposit interest expense | | — | | — | | — | | — | | — | | | |
Operating total net revenues | | — | | — | | — | | — | | — | | | |
| | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | |
Distribution expenses | | — | | — | | — | | — | | — | | | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | | |
Benefits, claims, losses and settlement expenses | | (1 | ) | (53 | ) | 20 | | — | | — | | | |
Amortization of deferred acquisition costs | | (1 | ) | 10 | | — | | — | | — | | | |
Interest and debt expense | | — | | — | | — | | — | | — | | | |
General and administrative expense | | — | | — | | — | | (15 | ) | — | | | |
Operating expenses | | (2 | ) | (43 | ) | 20 | | (15 | ) | — | | | |
Pretax operating earnings | | $ | 2 | | $ | 43 | | $ | (20 | ) | $ | 15 | | $ | — | | | |
Tax adjustment | | | | | | | | | | $ | 16 | | | |
(1) Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities
(2) Variable annuity guaranteed living benefit impacts include:
$59 million net expense related to hedged variable annuity living benefits
$14 million decrease in DAC and DSIC amortization resulting from hedged living benefits
(3) Reflects revenues and expenses of Consolidated Investment Entities
(4) Non-recurring restructuring charges related to exiting the banking business
(5) Decrease in DAC and DSIC amortization from higher than projected separate account growth
(6) Revisions to certain calculations in the valuation of Variable Annuities
(7) $2 million expense attributable to valuation model revisions is excluded from operating earnings and disclosed as part of the Market Impact on VA Guaranteed Living Benefits
(8) Catastrophe losses related to Superstorm Sandy
(9) Positive impact related to settlement with a third party service provider
(10) Tax adjustment from prior periods
38
Ameriprise Financial, Inc.
Disclosed Items
3 Qtr 2012
Excluded from Operating Earnings
| | Advice & Wealth Management | | Annuities | | Protection | | Corporate and Eliminations | |
| | | | | | Market Impact on | | | | | | | | | |
| | Securities | | Securities | | VA Guaranteed | | Securities | | Securities | | | | Restructuring | |
(in millions, unaudited) | | Gains/(Losses) (1) | | Gains/(Losses) (1) | | Living Benefits (2)(8) | | Gains/(Losses) (1) | | Gains/(Losses) (1) | | CIEs (3) | | Charges (4) | |
Revenues | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | (11 | ) | $ | — | |
Distribution fees | | — | | — | | — | | — | | — | | — | | — | |
Net investment income | | (67 | ) | 1 | | — | | (1 | ) | (1 | ) | 43 | | (7 | ) |
Premiums | | — | | — | | — | | — | | — | | — | | — | |
Other revenues | | — | | — | | — | | — | | — | | (5 | ) | — | |
Total revenues | | (67 | ) | 1 | | — | | (1 | ) | (1 | ) | 27 | | (7 | ) |
Banking and deposit interest expense | | — | | — | | — | | — | | — | | — | | 1 | |
Total net revenues | | (67 | ) | 1 | | — | | (1 | ) | (1 | ) | 27 | | (8 | ) |
| | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | |
Distribution expenses | | — | | — | | — | | — | | — | | — | | — | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | 117 | | — | | — | | — | | — | |
Amortization of deferred acquisition costs | | — | | — | | (26 | ) | — | | — | | — | | — | |
Interest and debt expense | | — | | — | | — | | — | | — | | 44 | | — | |
General and administrative expense | | — | | — | | — | | — | | — | | 5 | | 9 | |
Total expenses | | — | | — | | 91 | | — | | — | | 49 | | 9 | |
Pretax segment income (loss) | | (67 | ) | 1 | | (91 | ) | (1 | ) | (1 | ) | (22 | ) | (17 | ) |
Less: Net income (loss) attributable to noncontrolling interest | | — | | — | | — | | — | | — | | (22 | ) | — | |
Pretax segment gain (loss) attributable to Ameriprise Financial | | $ | (67 | ) | $ | 1 | | $ | (91 | ) | $ | (1 | ) | $ | (1 | ) | $ | — | | $ | (17 | ) |
|
Included in Operating Earnings |
|
| | Asset Management | | Annuities | | Protection | | | | | |
| | Hedge Fund | | Market | | Valuation | | Market | | Valuation | | | | | |
| | Redemption | | Impacts | | Assumptions & | | Impacts | | Assumptions & | | | | | |
(in millions, unaudited) | | Performance Fees (5) | | to DAC/DSIC (6) | | Model Changes (7)(8) | | to DAC/DSIC (6) | | Model Changes (7) | | | | | |
Revenues | | | | | | | | | | | | | | | |
Management and financial advice fees | | * | | $ | — | | $ | — | | $ | — | | $ | — | | | | | |
Distribution fees | | — | | — | | — | | — | | — | | | | | |
Net investment income | | — | | — | | — | | — | | — | | | | | |
Premiums | | — | | — | | — | | — | | — | | | | | |
Other revenues | | — | | — | | — | | — | | (41 | ) | | | | |
Total revenues | | — | | — | | — | | — | | (41 | ) | | | | |
Banking and deposit interest expense | | — | | — | | — | | — | | — | | | | | |
Operating total net revenues | | — | | — | | — | | — | | (41 | ) | | | | |
| | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | |
Distribution expenses | | — | | — | | — | | — | | — | | | | | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | | | | |
Benefits, claims, losses and settlement expenses | | — | | (3 | ) | 32 | | — | | (14 | ) | | | | |
Amortization of deferred acquisition costs | | — | | (11 | ) | 28 | | (1 | ) | (14 | ) | | | | |
Interest and debt expense | | — | | — | | — | | — | | — | | | | | |
General and administrative expense | | * | | — | | — | | — | | — | | | | | |
Operating expenses | | — | | (14 | ) | 60 | | (1 | ) | (28 | ) | | | | |
Pretax operating earnings | | $ | 7 | | $ | 14 | | $ | (60 | ) | $ | 1 | | $ | (13 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
(1) Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities
(2) Variable annuity guaranteed living benefit impacts include:
$123 million net expense related to hedged variable annuity living benefits
$32 million decrease in DAC and DSIC amortization resulting from hedged living benefits
(3) Reflects revenues and expenses of Consolidated Investment Entities
(4) Non-recurring restructuring charges related to exiting the banking business
(5) The company has chosen not to disclose the gross revenue and expense amounts for competitive reasons, but instead has shown the net impact on pretax operating earnings
(6) Decrease in DAC and DSIC amortization from higher than projected separate account growth
(7) Net pretax impact of annual review/updating of valuation assumptions and model changes
(8) $10 million expense attributable to annual review/updating of valuation assumptions and model changes is excluded from operating earnings and disclosed as part of the Market Impact on VA Guaranteed Living Benefits
39
Ameriprise Financial, Inc.
Disclosed Items
2 Qtr 2012
Excluded from Operating Earnings
| | Advice & Wealth Management | | Asset Management | | Annuities | | Protection | | Corporate and Eliminations | |
| | | | | | | | Market Impact on | | | | | | | | | |
| | Securities | | Integration | | Securities | | VA Guaranteed | | Securities | | Securities | | | | Restructuring | |
(in millions, unaudited) | | Gains/(Losses) (1) | | Charges (2) | | Gains/(Losses) (1) | | Living Benefits (3) | | Gains/(Losses) (1) | | Gains/(Losses) (1) | | CIEs (4) | | Charges (5) | |
Revenues | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | (10 | ) | $ | — | |
Distribution fees | | — | | — | | — | | — | | — | | — | | — | | — | |
Net investment income | | (4 | ) | — | | (2 | ) | — | | (1 | ) | 2 | | 14 | | — | |
Premiums | | — | | — | | — | | — | | — | | — | | — | | — | |
Other revenues | | — | | — | | — | | — | | — | | — | | (3 | ) | — | |
Total revenues | | (4 | ) | — | | (2 | ) | — | | (1 | ) | 2 | | 1 | | — | |
Banking and deposit interest expense | | — | | — | | — | | — | | — | | — | | — | | — | |
Total net revenues | | (4 | ) | — | | (2 | ) | — | | (1 | ) | 2 | | 1 | | — | |
| | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | |
Distribution expenses | | — | | — | | — | | — | | — | | — | | — | | — | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | 11 | | — | | — | | — | | — | |
Amortization of deferred acquisition costs | | — | | — | | — | | 5 | | — | | — | | — | | — | |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | 48 | | — | |
General and administrative expense | | — | | 22 | | — | | — | | — | | — | | 6 | | 4 | |
Total expenses | | — | | 22 | | — | | 16 | | — | | — | | 54 | | 4 | |
Pretax segment income (loss) | | (4 | ) | (22 | ) | (2 | ) | (16 | ) | (1 | ) | 2 | | (53 | ) | (4 | ) |
Less: Net income (loss) attributable to noncontrolling interest | | — | | — | | — | | — | | — | | — | | (53 | ) | — | |
Pretax segment gain (loss) attributable to Ameriprise Financial | | $ | (4 | ) | $ | (22 | ) | $ | (2 | ) | $ | (16 | ) | $ | (1 | ) | $ | 2 | | $ | — | | $ | (4 | ) |
Included in Operating Earnings
| | Annuities | | Protection | | Consolidated | | | |
| | | | | | Market | | | | Market | | Auto & Home | | | | | |
| | Guaranty Fund | | Valuation | | Impacts | | Reserve | | Impacts | | Catastrophe | | Net Tax- | | | |
(in millions, unaudited) | | Assessments (6) | | Model Updates (7) | | to DAC/DSIC (8) | | Release (9) | | to DAC/DSIC (8) | | Losses (10) | | Related Item (11) | | | |
Revenues | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | |
Distribution fees | | — | | — | | — | | — | | — | | — | | — | | | |
Net investment income | | — | | — | | — | | — | | — | | — | | — | | | |
Premiums | | — | | — | | — | | — | | — | | — | | — | | | |
Other revenues | | — | | — | | — | | — | | — | | — | | — | | | |
Total revenues | | — | | — | | — | | — | | — | | — | | — | | | |
Banking and deposit interest expense | | — | | — | | — | | — | | — | | — | | — | | | |
Operating total net revenues | | — | | — | | — | | — | | — | | — | | — | | | |
| | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | |
Distribution expenses | | — | | — | | — | | — | | — | | — | | — | | | |
Interest credited to fixed accounts | | — | | 2 | | — | | — | | — | | — | | — | | | |
Benefits, claims, losses and settlement expenses | | — | | 12 | | 3 | | (9 | ) | — | | 8 | | — | | | |
Amortization of deferred acquisition costs | | — | | — | | 8 | | — | | 1 | | — | | — | | | |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | | |
General and administrative expense | | 6 | | — | | — | | — | | — | | — | | — | | | |
Operating expenses | | 6 | | 14 | | 11 | | (9 | ) | 1 | | 8 | | — | | | |
Pretax operating earnings | | $ | (6 | ) | $ | (14 | ) | $ | (11 | ) | $ | 9 | | $ | (1 | ) | $ | (8 | ) | $ | — | | | |
Net tax-related item | | | | | | | | | | | | | | $ | 40 | | | |
(1) Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities
(2) Non-recurring integration charges related to Columbia Management acquisition
(3) Variable annuity guaranteed living benefit impacts include:
$9 million net expense related to hedged variable annuity living benefits
$7 million increase in DAC and DSIC amortization resulting from hedged living benefits
(4) Reflects revenues and expenses of Consolidated Investment Entities
(5) Non-recurring restructuring charges related to exiting the banking business
(6) Insurance industry guaranty fund assessments, primarily related to Executive Life of NY (unaffiliated)
(7) Revisions to certain calculations in the valuation of our insurance and annuity products
(8) Increase in DAC and DSIC amortization from lower than projected separate account growth
(9) Release of excess life insurance reserve
(10) Above the normal expected level of claims experience due to storms; total catastrophe losses were $17 million for the quarter
(11) Tax-related item related to incomplete data received from a third party service provider for securities lending activities in prior periods
40
Ameriprise Financial, Inc.
Disclosed Items
1 Qtr 2012
Excluded from Operating Earnings
| | Advice & Wealth Management | | Asset Management | | Annuities | | Corporate and Eliminations | |
| | | | | | | | Market Impact on | | | | | |
| | Securities | | Integration | | Securities | | VA Guaranteed | | Securities | | | |
(in millions, unaudited) | | Gains/(Losses) (1) | | Charges (2) | | Gains/(Losses) (1) | | Living Benefits (3) | | Gains/(Losses) (1) | | CIEs (4) | |
Revenues | | | | | | | | | | | | | |
Management and financial advice fees | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | (10 | ) |
Distribution fees | | — | | — | | — | | — | | — | | — | |
Net investment income | | (4 | ) | — | | 1 | | — | | 1 | | 61 | |
Premiums | | — | | — | | — | | — | | — | | — | |
Other revenues | | — | | — | | — | | — | | — | | 1 | |
Total revenues | | (4 | ) | — | | 1 | | — | | 1 | | 52 | |
Banking and deposit interest expense | | — | | — | | — | | — | | — | | — | |
Total net revenues | | (4 | ) | — | | 1 | | — | | 1 | | 52 | |
| | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | |
Distribution expenses | | — | | — | | — | | — | | — | | — | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | 149 | | — | | — | |
Amortization of deferred acquisition costs | | — | | — | | — | | (36 | ) | — | | — | |
Interest and debt expense | | — | | — | | — | | — | | — | | 46 | |
General and administrative expense | | — | | 23 | | — | | — | | — | | 2 | |
Total expenses | | — | | 23 | | — | | 113 | | — | | 48 | |
Pretax segment income (loss) | | (4 | ) | (23 | ) | 1 | | (113 | ) | 1 | | 4 | |
Less: Net income (loss) attributable to noncontrolling interest | | — | | — | | — | | — | | — | | 4 | |
Pretax segment gain (loss) attributable to Ameriprise Financial | | $ | (4 | ) | $ | (23 | ) | $ | 1 | | $ | (113 | ) | $ | 1 | | $ | — | |
Included in Operating Earnings
| | Asset Management | | Annuities | | Protection | | | |
| | | | Threadneedle | | | | Market | | Market | | | |
| | Threadneedle | | FSA Regulatory | | Valuation | | Impacts | | Impacts | | | |
(in millions, unaudited) | | Valuation (5) | | Levy (6) | | Model Updates (7) | | to DAC/DSIC (8) | | to DAC/DSIC (8) | | | |
Revenues | | | | | | | | | | | | | |
Management and financial advice fees | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | |
Distribution fees | | — | | — | | — | | — | | — | | | |
Net investment income | | — | | — | | — | | — | | — | | | |
Premiums | | — | | — | | — | | — | | — | | | |
Other revenues | | — | | — | | — | | — | | — | | | |
Total revenues | | — | | — | | — | | — | | — | | | |
Banking and deposit interest expense | | — | | — | | — | | — | | — | | | |
Operating total net revenues | | — | | — | | — | | — | | — | | | |
| | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | |
Distribution expenses | | — | | — | | — | | — | | — | | | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | | |
Benefits, claims, losses and settlement expenses | | — | | — | | (23 | ) | (6 | ) | — | | | |
Amortization of deferred acquisition costs | | — | | — | | 3 | | (18 | ) | (2 | ) | | |
Interest and debt expense | | — | | — | | — | | — | | — | | | |
General and administrative expense | | (2 | ) | (2 | ) | — | | — | | — | | | |
Operating expenses | | (2 | ) | (2 | ) | (20 | ) | (24 | ) | (2 | ) | | |
Pretax operating earnings | | $ | 2 | | $ | 2 | | $ | 20 | | $ | 24 | | $ | 2 | | | |
(1) Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities
(2) Non-recurring integration charges related to Columbia Management acquisition
(3) Variable annuity guaranteed living benefit impacts include:
$158 million net expense related to hedged variable annuity living benefits
$45 million decrease in DAC and DSIC amortization resulting from hedged living benefits
(4) Reflects revenues and expenses of Consolidated Investment Entities
(5) Impact related to Threadneedle’s estimated change in market valuation attributable to its employee incentive compensation program
(6) Partial refund of 2011 industry-wide Financial Services Authority levy
(7) Revisions to certain calculations in the valuation of Variable Annuities
(8) Decrease in DAC and DSIC amortization from higher than projected separate account growth
41
Ameriprise Financial, Inc.
Disclosed Items
4 Qtr 2011
Excluded from Operating Earnings
| | Advice & Wealth Management | | Asset Management | | Annuities | | Corporate and Eliminations | |
| | | | | | | | | | Market Impact on | | | | | |
| | Securities | | Securities | | Integration | | Securities | | VA Guaranteed | | Securities | | | |
(in millions, unaudited) | | Gains/(Losses) (1) | | Gains/(Losses) (1) | | Charges (2) | | Gains/(Losses) (1) | | Living Benefits (3) | | Gains/(Losses) (1) | | CIEs (4) | |
Revenues | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | (20 | ) |
Distribution fees | | — | | — | | — | | — | | — | | — | | — | |
Net investment income | | (4 | ) | 1 | | — | | 5 | | — | | (1 | ) | 112 | |
Premiums | | — | | — | | — | | — | | — | | — | | — | |
Other revenues | | — | | — | | — | | — | | — | | — | | 34 | |
Total revenues | | (4 | ) | 1 | | — | | 5 | | — | | (1 | ) | 126 | |
Banking and deposit interest expense | | — | | — | | — | | — | | — | | — | | — | |
Total net revenues | | (4 | ) | 1 | | — | | 5 | | — | | (1 | ) | 126 | |
| | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | |
Distribution expenses | | — | | — | | — | | — | | — | | — | | — | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | — | | 152 | | — | | — | |
Amortization of deferred acquisition costs | | — | | — | | — | | — | | (41 | ) | — | | — | |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | 73 | |
General and administrative expense | | — | | — | | 21 | | — | | — | | — | | 8 | |
Total expenses | | — | | — | | 21 | | — | | 111 | | — | | 81 | |
Pretax segment income (loss) | | (4 | ) | 1 | | (21 | ) | 5 | | (111 | ) | (1 | ) | 45 | |
Less: Net income (loss) attributable to noncontrolling interest | | — | | — | | — | | — | | — | | — | | 45 | |
Pretax segment gain (loss) attributable to Ameriprise Financial | | $ | (4 | ) | $ | 1 | | $ | (21 | ) | $ | 5 | | $ | (111 | ) | $ | (1 | ) | $ | — | |
Included in Operating Earnings
| | Asset Management | | Annuities | | Protection | | | | | | | |
| | | | Indexed | | Market | | Market | | | | | | | |
| | | | Annuity Reserve | | Impacts | | Impacts | | | | | | | |
(in millions, unaudited) | | CDO Gain (5) | | Adjustment (6) | | to DAC/DSIC (7) | | to DAC/DSIC (7) | | | | | | | |
Revenues | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | 9 | | $ | — | | $ | — | | $ | — | | | | | | | |
Distribution fees | | — | | — | | — | | — | | | | | | | |
Net investment income | | 6 | | — | | — | | — | | | | | | | |
Premiums | | — | | — | | — | | — | | | | | | | |
Other revenues | | — | | — | | — | | — | | | | | | | |
Total revenues | | 15 | | — | | — | | — | | | | | | | |
Banking and deposit interest expense | | — | | — | | — | | — | | | | | | | |
Operating total net revenues | | 15 | | — | | — | | — | | | | | | | |
| | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | |
Distribution expenses | | — | | — | | — | | — | | | | | | | |
Interest credited to fixed accounts | | — | | 8 | | — | | — | | | | | | | |
Benefits, claims, losses and settlement expenses | | — | | — | | (4 | ) | — | | | | | | | |
Amortization of deferred acquisition costs | | — | | — | | (12 | ) | (1 | ) | | | | | | |
Interest and debt expense | | — | | — | | — | | — | | | | | | | |
General and administrative expense | | 4 | | — | | — | | — | | | | | | | |
Operating expenses | | 4 | | 8 | | (16 | ) | (1 | ) | | | | | | |
Pretax operating earnings | | $ | 11 | | $ | (8 | ) | $ | 16 | | $ | 1 | | | | | | | |
(1) Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities
(2) Non-recurring integration charges related to Columbia Management acquisition
(3) Variable annuity guaranteed living benefit impacts include:
$162 million net expense related to hedged variable annuity living benefits
$51 million decrease in DAC and DSIC amortization resulting from hedged living benefits
(4) Reflects revenues and expenses of Consolidated Investment Entities
(5) Gain on liquidation of CDO
(6) Adjustment in the liability for a closed book of indexed annuities
(7) Decrease in DAC and DSIC amortization from higher than projected separate account growth
42
Exhibit B
Statistical Supplement Package
(unaudited)
Fourth Quarter 2012
Non-GAAP Financial Measure Reconciliations
43
Ameriprise Financial, Inc.
Non-GAAP Financial Measure Reconciliations
Fourth Quarter 2012
| | | | | | | | | | | | Year-to-date | |
(in millions unless otherwise noted, unaudited) | | 4 Qtr 2011 | | 1 Qtr 2012 | | 2 Qtr 2012 | | 3 Qtr 2012 | | 4 Qtr 2012 | | 2011 | | 2012 | |
Return on Equity | | | | | | | | | | | | | | | |
Net income attributable to Ameriprise Financial (last twelve months) | | $ | 1,116 | | $ | 1,119 | | $ | 1,027 | | $ | 876 | | $ | 1,029 | | $ | 1,116 | | $ | 1,029 | |
Less income (loss) from discontinued operations, net of tax (last twelve months) | | (60 | ) | 10 | | 13 | | 10 | | (2 | ) | (60 | ) | (2 | ) |
Net income from continuing operations attributable to Ameriprise Financial (last twelve months) | | 1,176 | | 1,109 | | 1,014 | | 866 | | 1,031 | | 1,176 | | 1,031 | |
Less adjustments (1) | | (98 | ) | (156 | ) | (172 | ) | (320 | ) | (214 | ) | (98 | ) | (214 | ) |
Operating earnings (last twelve months) | | $ | 1,274 | | $ | 1,265 | | $ | 1,186 | | $ | 1,186 | | $ | 1,245 | | $ | 1,274 | | $ | 1,245 | |
| | | | | | | | | | | | | | | |
Total Ameriprise Financial shareholders’ equity (five point quarter end average) | | $ | 9,169 | | $ | 9,114 | | $ | 9,072 | | $ | 9,057 | | $ | 9,071 | | $ | 9,169 | | $ | 9,071 | |
Less assets and liabilities held for sale (five point quarter end average) | | 30 | | 11 | | 16 | | 21 | | — | | 30 | | — | |
Less AOCI, net of tax (five point quarter end average) | | 701 | | 741 | | 804 | | 912 | | 1,001 | | 701 | | 1,001 | |
Total Ameriprise Financial shareholders’ equity from continuing operations excluding AOCI (five point quarter end average) | | 8,438 | | 8,362 | | 8,252 | | 8,124 | | 8,070 | | 8,438 | | 8,070 | |
Less equity impacts attributable to the consolidated investment entities (five point quarter end average) | | 478 | | 454 | | 427 | | 406 | | 397 | | 478 | | 397 | |
Operating equity (five point quarter end average) | | $ | 7,960 | | $ | 7,908 | | $ | 7,825 | | $ | 7,718 | | $ | 7,673 | | $ | 7,960 | | $ | 7,673 | |
| | | | | | | | | | | | | | | |
Return on equity excluding AOCI | | 13.9 | % | 13.3 | % | 12.3 | % | 10.7 | % | 12.8 | % | 13.9 | % | 12.8 | % |
Operating return on equity excluding AOCI | | 16.0 | % | 16.0 | % | 15.2 | % | 15.4 | % | 16.2 | % | 16.0 | % | 16.2 | % |
| | | | | | | | | | | | | | | |
Effective Tax Rate | | | | | | | | | | | | | | | |
Income from continuing operations before income tax provision | | $ | 326 | | $ | 322 | | $ | 299 | | $ | 199 | | $ | 418 | | $ | 1,447 | | $ | 1,238 | |
Less pretax income (loss) attributable to noncontrolling interests | | 45 | | 4 | | (53 | ) | (22 | ) | (57 | ) | (106 | ) | (128 | ) |
Income from continuing operations before income tax provision excluding consolidated investment entities (CIEs) | | 281 | | 318 | | 352 | | 221 | | 475 | | 1,553 | | 1,366 | |
Less adjustments (2) | | (131 | ) | (138 | ) | (47 | ) | (176 | ) | 32 | | (151 | ) | (329 | ) |
Pretax operating earnings | | $ | 412 | | $ | 456 | | $ | 399 | | $ | 397 | | $ | 443 | | $ | 1,704 | | $ | 1,695 | |
| | | | | | | | | | | | | | | |
Income tax provision from continuing operations | | $ | 58 | | $ | 73 | | $ | 128 | | $ | 47 | | $ | 87 | | $ | 377 | | $ | 335 | |
Operating income tax provision | | $ | 104 | | $ | 121 | | $ | 145 | | $ | 108 | | $ | 76 | | $ | 430 | | $ | 450 | |
| | | | | | | | | | | | | | | |
Effective tax rate (3) | | 17.9 | % | 22.6 | % | 42.8 | % | 23.8 | % | 20.8 | % | 26.1 | % | 27.1 | % |
Effective tax rate excluding noncontrolling interests (3) | | 20.7 | % | 22.9 | % | 36.4 | % | 21.4 | % | 18.3 | % | 24.3 | % | 24.5 | % |
Operating effective tax rate (3) | | 25.2 | % | 26.5 | % | 36.3 | % | 27.2 | % | 17.2 | % | 25.2 | % | 26.5 | % |
(1) Adjustments reflect the trailing twelve months’ sum of after-tax net realized gains/losses; the market impact on variable annuity guaranteed living benefits net of hedges and related DSIC and DAC amortization; and integration/restructuring charges. After-tax is calculated using the statutory tax rate of 35%.
(2) Adjustments reflect net realized gains/losses; the market impact on variable annuity guaranteed living benefits net of hedges and related DSIC and DAC amortization; and integration/restructuring charges.
(3) Q2 2012 includes a tax-related item related to incomplete data received from a third party service provider for securities lending activities in prior periods.
44
Ameriprise Financial, Inc.
Non-GAAP Financial Measure Reconciliations
Fourth Quarter 2012
(in millions unless otherwise noted, unaudited) | | December 31, 2011 | | March 31, 2012 | | June 30, 2012 | | September 30, 2012 | | December 31, 2012 | |
Long-term Debt Summary | | | | | | | | | | | |
Senior notes | | $ | 2,099 | | $ | 2,087 | | $ | 2,109 | | $ | 2,119 | | $ | 2,109 | |
Junior subordinated notes | | 294 | | 294 | | 294 | | 294 | | 294 | |
Total Ameriprise Financial long-term debt | | 2,393 | | 2,381 | | 2,403 | | 2,413 | | 2,403 | |
Less fair value of hedges and unamortized discount | | 149 | | 137 | | 159 | | 169 | | 159 | |
Total Ameriprise Financial long-term debt excluding fair value of hedges and unamortized discount | | $ | 2,244 | | $ | 2,244 | | $ | 2,244 | | $ | 2,244 | | $ | 2,244 | |
| | | | | | | | | | | |
Equity Summary | | | | | | | | | | | |
Total equity | | $ | 9,694 | | $ | 9,749 | | $ | 9,613 | | $ | 9,821 | | $ | 9,712 | |
Less noncontrolling interests | | 706 | | 634 | | 608 | | 664 | | 620 | |
Total Ameriprise Financial shareholders’ equity | | 8,988 | | 9,115 | | 9,005 | | 9,157 | | 9,092 | |
Less equity of consolidated investment entities | | 402 | | 413 | | 370 | | 365 | | 312 | |
Total Ameriprise Financial shareholders’ equity excluding CIEs | | $ | 8,586 | | $ | 8,702 | | $ | 8,635 | | $ | 8,792 | | $ | 8,780 | |
| | | | | | | | | | | |
Capital Summary | | | | | | | | | | | |
Total Ameriprise Financial long-term debt | | $ | 2,393 | | $ | 2,381 | | $ | 2,403 | | $ | 2,413 | | $ | 2,403 | |
Total Ameriprise Financial shareholders’ equity | | 8,988 | | 9,115 | | 9,005 | | 9,157 | | 9,092 | |
Total Ameriprise Financial capital | | 11,381 | | 11,496 | | 11,408 | | 11,570 | | 11,495 | |
Less equity of consolidated investment entities | | 402 | | 413 | | 370 | | 365 | | 312 | |
Less fair value of hedges and unamortized discount | | 149 | | 137 | | 159 | | 169 | | 159 | |
Total Ameriprise Financial capital excluding fair value of hedges, unamortized discount and equity of CIEs | | $ | 10,830 | | $ | 10,946 | | $ | 10,879 | | $ | 11,036 | | $ | 11,024 | |
| | | | | | | | | | | |
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital | | 21.0 | % | 20.7 | % | 21.1 | % | 20.9 | % | 20.9 | % |
Total Ameriprise Financial long-term debt to total Ameriprise Financial capital excluding fair value of hedges, unamortized discount and equity of CIEs | | 20.7 | % | 20.5 | % | 20.6 | % | 20.3 | % | 20.4 | % |
| | | | | | | | | | | |
Ameriprise Financial shareholders’ equity | | $ | 8,988 | | $ | 9,115 | | $ | 9,005 | | $ | 9,157 | | $ | 9,092 | |
AOCI | | 751 | | 851 | | 942 | | 1,267 | | 1,194 | |
Appropriated retained earnings of CIEs | | 428 | | 440 | | 394 | | 390 | | 336 | |
AOCI attributable to CIEs | | (26 | ) | (27 | ) | (24 | ) | (25 | ) | (24 | ) |
| | | | | | | | | | | |
Ameriprise Financial shareholders’ equity | | $ | 8,988 | | $ | 9,115 | | $ | 9,005 | | $ | 9,157 | | $ | 9,092 | |
Less AOCI | | 751 | | 851 | | 942 | | 1,267 | | 1,194 | |
Ameriprise Financial shareholders’ equity excluding AOCI | | $ | 8,237 | | $ | 8,264 | | $ | 8,063 | | $ | 7,890 | | $ | 7,898 | |
| | | | | | | | | | | |
Ameriprise Financial shareholders’ equity | | $ | 8,988 | | $ | 9,115 | | $ | 9,005 | | $ | 9,157 | | $ | 9,092 | |
Less appropriated retained earnings of CIEs | | 428 | | 440 | | 394 | | 390 | | 336 | |
Less AOCI | | 751 | | 851 | | 942 | | 1,267 | | 1,194 | |
Ameriprise Financial shareholders’ equity excluding CIEs and AOCI | | $ | 7,809 | | $ | 7,824 | | $ | 7,669 | | $ | 7,500 | | $ | 7,562 | |
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