EX-99.2 3 a15-21297_1ex99d2.htm EX-99.2

Exhibit 99.2

 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2015

 



 

Ameriprise Financial, Inc.

Statistical Supplement Information

Table of Contents

 

 

 

Page

Ameriprise Financial, Inc.

 

 

Statistical Supplement Presentation

 

4

Consolidated GAAP Income Statements

 

5

Consolidated Operating Results and Highlights

 

6

Common Share and Capital Summary

 

8

Segment Summary

 

10

Advice & Wealth Management Segment

 

 

Segment Operating Income Statements

 

12

Segment Metrics

 

13

Asset Management Segment

 

 

Segment Operating Income Statements

 

15

Segment Metrics

 

16

Columbia Asset Management Products

 

17

Threadneedle Asset Management Products

 

18

Retail Fund Performance - Columbia

 

19

Retail Fund Performance - Threadneedle

 

20

Annuities Segment

 

 

Segment Operating Income Statements

 

22

Segment Metrics

 

23

Protection Segment

 

 

Segment Operating Income Statements

 

25

Segment Metrics

 

26

Corporate & Other Segment

 

 

Segment Operating Income Statements

 

28

Eliminations

 

 

Operating Income Statements

 

29

Balance Sheet and Ratings Information

 

 

Consolidated Balance Sheets

 

31

Capital and Ratings Information

 

32

Investments

 

33

Non-GAAP Financial Information

 

34

Glossary of Selected Terminology

 

 

Glossary of Selected Terminology - Segments

 

35

Glossary of Selected Terminology

 

36

Exhibit A

 

 

Disclosed Items

 

38

Exhibit B

 

 

Non-GAAP Financial Measure Reconciliations

 

44

 

2



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2015

 

Consolidated Results

 

3



 

Ameriprise Financial, Inc.

Statistical Supplement Presentation

Third Quarter 2015

 

Ameriprise Financial, Inc. (“Ameriprise Financial” or “the Company”) prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”). Management believes that operating measures, which exclude net realized investment gains or losses, net of deferred sales inducement costs (“DSIC”) and deferred acquisition costs (“DAC”) amortization, unearned revenue amortization and the reinsurance accrual; the market impact on variable annuity guaranteed benefits, net of hedges and the related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration and restructuring charges; income (loss) from discontinued operations; and the impact of consolidating certain investment entities (“CIEs”), best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis. The Company also uses a number of non-GAAP financial measures to evaluate its financial performance on a basis comparable to that used by some securities analysts and investors. However, these measures are not a substitute for GAAP. Therefore, reconciliations to GAAP measures are provided on page 6 and in Exhibit B “Non-GAAP Financial Measure Reconciliations” on pages 44 and 45.

 

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

 

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

 

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

 

4



 

Ameriprise Financial, Inc.

Consolidated GAAP Income Statements

Third Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 3Q

 

YTD Chg - 3Q

 

Seq Qtr Chg - 3Q

 

(in millions, except per share amounts, unaudited)

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

1,483

 

$

1,489

 

$

1,468

 

$

1,518

 

$

1,465

 

$

4,321

 

$

4,451

 

$

(18

)

(1

)%

$

130

 

3

%

$

(53

)

(3

)%

Distribution fees

 

464

 

484

 

466

 

472

 

451

 

1,410

 

1,389

 

(13

)

(3

)%

(21

)

(1

)%

(21

)

(4

)%

Net investment income

 

428

 

409

 

484

 

423

 

321

 

1,332

 

1,228

 

(107

)

(25

)%

(104

)

(8

)%

(102

)

(24

)%

Premiums

 

351

 

359

 

353

 

368

 

360

 

1,026

 

1,081

 

9

 

3

%

55

 

5

%

(8

)

(2

)%

Other revenues

 

392

 

355

 

289

 

354

 

296

 

1,111

 

939

 

(96

)

(24

)%

(172

)

(15

)%

(58

)

(16

)%

Total revenues

 

3,118

 

3,096

 

3,060

 

3,135

 

2,893

 

9,200

 

9,088

 

(225

)

(7

)%

(112

)

(1

)%

(242

)

(8

)%

Banking and deposit interest expense

 

7

 

7

 

7

 

7

 

7

 

21

 

21

 

 

 

 

 

 

 

Total net revenues

 

3,111

 

3,089

 

3,053

 

3,128

 

2,886

 

9,179

 

9,067

 

(225

)

(7

)%

(112

)

(1

)%

(242

)

(8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

813

 

827

 

819

 

835

 

806

 

2,409

 

2,460

 

(7

)

(1

)%

51

 

2

%

(29

)

(3

)%

Interest credited to fixed accounts

 

168

 

184

 

172

 

160

 

171

 

529

 

503

 

3

 

2

%

(26

)

(5

)%

11

 

7

%

Benefits, claims, losses and settlement expenses

 

458

 

568

 

533

 

543

 

471

 

1,414

 

1,547

 

13

 

3

%

133

 

9

%

(72

)

(13

)%

Amortization of deferred acquisition costs

 

116

 

86

 

75

 

94

 

133

 

281

 

302

 

17

 

15

%

21

 

7

%

39

 

41

%

Interest and debt expense

 

79

 

91

 

84

 

89

 

98

 

237

 

271

 

19

 

24

%

34

 

14

%

9

 

10

%

General and administrative expense

 

757

 

775

 

752

 

792

 

744

 

2,320

 

2,288

 

(13

)

(2

)%

(32

)

(1

)%

(48

)

(6

)%

Total expenses

 

2,391

 

2,531

 

2,435

 

2,513

 

2,423

 

7,190

 

7,371

 

32

 

1

%

181

 

3

%

(90

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax provision

 

720

 

558

 

618

 

615

 

463

 

1,989

 

1,696

 

(257

)

(36

)%

(293

)

(15

)%

(152

)

(25

)%

Income tax provision

 

155

 

104

 

139

 

139

 

111

 

441

 

389

 

(44

)

(28

)%

(52

)

(12

)%

(28

)

(20

)%

Income from continuing operations

 

565

 

454

 

479

 

476

 

352

 

1,548

 

1,307

 

(213

)

(38

)%

(241

)

(16

)%

(124

)

(26

)%

Income (loss) from discontinued operations, net of tax

 

 

(1

)

 

 

 

(1

)

 

 

 

1

 

#

 

 

 

Net income

 

565

 

453

 

479

 

476

 

352

 

1,547

 

1,307

 

(213

)

(38

)%

(240

)

(16

)%

(124

)

(26

)%

Less: Net income (loss) attributable to noncontrolling interests

 

145

 

28

 

86

 

61

 

(45

)

353

 

102

 

(190

)

#

 

(251

)

(71

)%

(106

)

#

 

Net income attributable to Ameriprise Financial

 

$

420

 

$

425

 

$

393

 

$

415

 

$

397

 

$

1,194

 

$

1,205

 

$

(23

)

(5

)%

$

11

 

1

%

$

(18

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

365

 

$

365

 

$

354

 

$

355

 

$

346

 

$

1,114

 

$

1,055

 

$

(19

)

(5

)%

$

(59

)

(5

)%

$

(9

)

(3

)%

Realized investment gains (losses)

 

4

 

27

 

10

 

5

 

(10

)

10

 

5

 

(14

)

#

 

(5

)

(50

)%

(15

)

#

 

Affordable housing

 

(8

)

(5

)

(8

)

(10

)

(7

)

(20

)

(25

)

1

 

13

%

(5

)

(25

)%

3

 

30

%

Other (including seed money)

 

26

 

23

 

23

 

19

 

(10

)

70

 

32

 

(36

)

#

 

(38

)

(54

)%

(29

)

#

 

Consolidated investment entities

 

41

 

(1

)

105

 

54

 

2

 

158

 

161

 

(39

)

(95

)%

3

 

2

%

(52

)

(96

)%

Total net investment income

 

$

428

 

$

409

 

$

484

 

$

423

 

$

321

 

$

1,332

 

$

1,228

 

$

(107

)

(25

)%

$

(104

)

(8

)%

$

(102

)

(24

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

2.21

 

$

2.27

 

$

2.11

 

$

2.26

 

$

2.20

 

$

6.20

 

$

6.57

 

$

(0.01

)

 

$

0.37

 

6

%

$

(0.06

)

(3

)%

Income (loss) from discontinued operations

 

 

(0.01

)

 

 

 

(0.01

)

 

 

 

0.01

 

#

 

 

 

Net income

 

$

2.21

 

$

2.26

 

$

2.11

 

$

2.26

 

$

2.20

 

$

6.19

 

$

6.57

 

$

(0.01

)

 

$

0.38

 

6

%

$

(0.06

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

2.17

 

$

2.23

 

$

2.08

 

$

2.23

 

$

2.17

 

$

6.09

 

$

6.48

 

$

 

 

$

0.39

 

6

%

$

(0.06

)

(3

)%

Income (loss) from discontinued operations

 

 

(0.01

)

 

 

 

(0.01

)

 

 

 

0.01

 

#

 

 

 

Net income

 

$

2.17

 

$

2.22

 

$

2.08

 

$

2.23

 

$

2.17

 

$

6.08

 

$

6.48

 

$

 

 

$

0.40

 

7

%

$

(0.06

)

(3

)%

Earnings per diluted share growth (from continuing operations)

 

16.7

%

51.7

%

3.5

%

16.8

%

 

22.5

%

6.4

%

(16.7

)%

 

 

(16.1

)%

 

 

(16.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

190.3

 

187.9

 

186.3

 

183.8

 

180.4

 

192.8

 

183.5

 

(9.9

)

(5

)%

(9.3

)

(5

)%

(3.4

)

(2

)%

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

 

3.4

 

3.3

 

2.8

 

2.6

 

2.3

 

3.5

 

2.5

 

(1.1

)

(32

)%

(1.0

)

(29

)%

(0.3

)

(12

)%

Diluted weighted average common shares outstanding

 

193.7

 

191.2

 

189.1

 

186.4

 

182.7

 

196.3

 

186.0

 

(11.0

)

(6

)%

(10.3

)

(5

)%

(3.7

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue growth

 

10.6

%

4.9

%

1.9

%

1.8

%

(7.2

)%

11.2

%

(1.2

)%

(17.8

)%

 

 

(12.4

)%

 

 

(9.0

)%

 

 

Pretax income margin (1)

 

23.1

%

18.1

%

20.2

%

19.7

%

16.0

%

21.7

%

18.7

%

(7.1

)%

 

 

(3.0

)%

 

 

(3.7

)%

 

 

Effective tax rate

 

21.6

%

18.7

%

22.5

%

22.6

%

24.1

%

22.2

%

23.0

%

2.5

%

 

 

0.8

%

 

 

1.5

%

 

 

Effective tax rate excluding noncontrolling interests (2)

 

27.0

%

19.7

%

26.1

%

25.1

%

21.9

%

26.9

%

24.4

%

(5.1

)%

 

 

(2.5

)%

 

 

(3.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial shareholders’ equity / outstanding shares (3)

 

$

43.68

 

$

43.47

 

$

44.27

 

$

43.25

 

$

42.76

 

$

43.68

 

$

42.76

 

$

(0.92

)

(2

)%

$

(0.92

)

(2

)%

$

(0.49

)

(1

)%

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

 

$

39.74

 

$

39.93

 

$

40.47

 

$

40.50

 

$

40.18

 

$

39.74

 

$

40.18

 

$

0.44

 

1

%

$

0.44

 

1

%

$

(0.32

)

(1

)%

 


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

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

# Variance of greater than 100%.

 

5



 

Ameriprise Financial, Inc.

Consolidated Operating Results and Highlights

Third Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 3Q

 

YTD Chg - 3Q

 

Seq Qtr Chg - 3Q

 

(in millions except per share amounts, unaudited)

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

$

3,111

 

$

3,089

 

$

3,053

 

$

3,128

 

$

2,886

 

$

9,179

 

$

9,067

 

$

(225

)

(7

)%

$

(112

)

(1

)%

$

(242

)

(8

)%

Less revenues attributable to the CIEs

 

206

 

108

 

149

 

141

 

43

 

543

 

333

 

(163

)

(79

)%

(210

)

(39

)%

(98

)

(70

)%

Less net realized investment gains (losses) (1)

 

4

 

27

 

10

 

5

 

(10

)

10

 

5

 

(14

)

#

 

(5

)

(50

)%

(15

)

#

 

Less market impact on indexed universal life benefits (1)

 

2

 

(11

)

(4

)

 

9

 

 

5

 

7

 

#

 

5

 

 

9

 

 

Less market impact of hedges on investments

 

 

 

 

(1

)

(31

)

 

(32

)

(31

)

 

(32

)

 

(30

)

#

 

Operating total net revenues (2)

 

$

2,899

 

$

2,965

 

$

2,898

 

$

2,983

 

$

2,875

 

$

8,626

 

$

8,756

 

$

(24

)

(1

)%

$

130

 

2

%

$

(108

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Ameriprise Financial

 

$

420

 

$

425

 

$

393

 

$

415

 

$

397

 

$

1,194

 

$

1,205

 

$

(23

)

(5

)%

$

11

 

1

%

$

(18

)

(4

)%

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

 

 

(1

)

 

 

 

(1

)

 

 

 

1

 

#

 

 

 

Net income from continuing operations attributable to Ameriprise Financial

 

420

 

426

 

393

 

415

 

397

 

1,195

 

1,205

 

(23

)

(5

)%

10

 

1

%

(18

)

(4

)%

Integration/restructuring charges, net of tax (3)

 

 

 

 

1

 

2

 

 

3

 

2

 

 

3

 

 

1

 

#

 

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

 

(5

)

21

 

22

 

23

 

3

 

40

 

48

 

8

 

#

 

8

 

20

%

(20

)

(87

)%

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

 

(5

)

10

 

4

 

(3

)

 

(6

)

1

 

5

 

#

 

7

 

#

 

3

 

#

 

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

 

 

 

 

1

 

20

 

 

21

 

20

 

 

21

 

 

19

 

#

 

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

 

3

 

17

 

7

 

3

 

(7

)

7

 

3

 

(10

)

#

 

(4

)

(57

)%

(10

)

#

 

Operating earnings (2)

 

$

407

 

$

440

 

$

412

 

$

434

 

$

429

 

$

1,222

 

$

1,275

 

$

22

 

5

%

$

53

 

4

%

$

(5

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax provision

 

$

720

 

$

558

 

$

618

 

$

615

 

$

463

 

$

1,989

 

$

1,696

 

$

(257

)

(36

)%

$

(293

)

(15

)%

$

(152

)

(25

)%

Less net income (loss) attributable to noncontrolling interests

 

145

 

28

 

86

 

61

 

(45

)

353

 

102

 

(190

)

#

 

(251

)

(71

)%

(106

)

#

 

Pretax earnings excluding CIEs

 

575

 

530

 

532

 

554

 

508

 

1,636

 

1,594

 

(67

)

(12

)%

(42

)

(3

)%

(46

)

(8

)%

Integration/restructuring charges

 

 

 

 

1

 

3

 

 

4

 

3

 

 

4

 

 

2

 

#

 

Market impact on variable annuity guaranteed benefits (1)

 

(9

)

34

 

34

 

36

 

5

 

60

 

75

 

14

 

#

 

15

 

25

%

(31

)

(86

)%

Market impact on indexed universal life benefits (1)

 

(8

)

15

 

6

 

(5

)

1

 

(9

)

2

 

9

 

#

 

11

 

#

 

6

 

#

 

Market impact of hedges on investments

 

 

 

 

1

 

31

 

 

32

 

31

 

 

32

 

 

30

 

#

 

Less net realized investment gains (losses) (1)

 

4

 

27

 

10

 

5

 

(10

)

10

 

5

 

(14

)

#

 

(5

)

(50

)%

(15

)

#

 

Pretax operating earnings (2)

 

$

554

 

$

552

 

$

562

 

$

582

 

$

558

 

$

1,677

 

$

1,702

 

$

4

 

1

%

$

25

 

1

%

$

(24

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Operating Margin (2)(4)

 

19.1

%

18.6

%

19.4

%

19.5

%

19.4

%

19.4

%

19.4

%

0.3

%

 

 

 

 

 

(0.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Effective Tax Rate (2)(5)

 

26.5

%

20.3

%

26.7

%

25.4

%

23.1

%

27.1

%

25.1

%

(3.4

)%

 

 

(2.0

)%

 

 

(2.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

190.3

 

187.9

 

186.3

 

183.8

 

180.4

 

192.8

 

183.5

 

(9.9

)

(5

)%

(9.3

)

(5

)%

(3.4

)

(2

)%

Diluted

 

193.7

 

191.2

 

189.1

 

186.4

 

182.7

 

196.3

 

186.0

 

(11.0

)

(6

)%

(10.3

)

(5

)%

(3.7

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Earnings Per Share (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic operating earnings per share

 

$

2.14

 

$

2.34

 

$

2.21

 

$

2.36

 

$

2.38

 

$

6.34

 

$

6.95

 

$

0.24

 

11

%

$

0.61

 

10

%

$

0.02

 

1

%

Operating earnings per diluted share

 

$

2.10

 

$

2.30

 

$

2.18

 

$

2.33

 

$

2.35

 

$

6.23

 

$

6.85

 

$

0.25

 

12

%

$

0.62

 

10

%

$

0.02

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity excluding AOCI (2)(5)

 

19.7

%

21.5

%

21.5

%

22.1

%

22.0

%

19.7

%

22.0

%

2.3

%

 

 

2.3

%

 

 

(0.1

)%

 

 

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

 

22.1

%

23.0

%

23.1

%

23.5

%

24.0

%

22.1

%

24.0

%

1.9

%

 

 

1.9

%

 

 

0.5

%

 

 

 


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

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

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

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

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

# Variance of greater than 100%.

 

6



 

Ameriprise Financial, Inc.

Consolidated Operating Results and Highlights

Third Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 3Q

 

YTD Chg - 3Q

 

Seq Qtr Chg - 3Q

 

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

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Book Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

42.12

 

$

42.28

 

$

42.84

 

$

41.91

 

$

41.86

 

$

42.12

 

$

41.86

 

$

(0.26

)

(1

)%

$

(0.26

)

(1

)%

$

(0.05

)

 

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

 

$

38.11

 

$

38.67

 

$

38.96

 

$

39.09

 

$

39.20

 

$

38.11

 

$

39.20

 

$

1.09

 

3

%

$

1.09

 

3

%

$

0.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenue growth: Target 6 - 8%

 

7.6

%

5.3

%

3.1

%

2.3

%

(0.8

)%

7.3

%

1.5

%

(8.4

)%

 

 

(5.8

)%

 

 

(3.1

)%

 

 

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

 

9.9

%

23.0

%

6.9

%

12.0

%

11.9

%

20.3

%

10.0

%

2.0

%

 

 

(10.3

)%

 

 

(0.1

)%

 

 

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

 

22.1

%

23.0

%

23.1

%

23.5

%

24.0

%

22.1

%

24.0

%

1.9

%

 

 

1.9

%

 

 

0.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

27.0

%

27.4

%

27.2

%

28.0

%

28.4

%

27.0

%

28.4

%

1.4

%

 

 

1.4

%

 

 

0.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill and Intangible Assets

 

$

2,036

 

$

2,010

 

$

1,982

 

$

1,997

 

$

1,982

 

$

2,036

 

$

1,982

 

$

(54

)

(3

)%

$

(54

)

(3

)%

$

(15

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Under Management and Administration

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management AUM

 

$

168,724

 

$

174,088

 

$

179,361

 

$

181,127

 

$

173,000

 

$

168,724

 

$

173,000

 

$

4,276

 

3

%

$

4,276

 

3

%

$

(8,127

)

(4

)%

Asset Management AUM

 

504,793

 

505,588

 

506,310

 

503,093

 

471,078

 

504,793

 

471,078

 

(33,715

)

(7

)%

(33,715

)

(7

)%

(32,015

)

(6

)%

Corporate AUM

 

861

 

826

 

756

 

723

 

693

 

861

 

693

 

(168

)

(20

)%

(168

)

(20

)%

(30

)

(4

)%

Eliminations

 

(21,699

)

(21,885

)

(22,489

)

(23,255

)

(22,200

)

(21,699

)

(22,200

)

(501

)

(2

)%

(501

)

(2

)%

1,055

 

5

%

Total Assets Under Management

 

652,679

 

658,617

 

663,938

 

661,688

 

622,571

 

652,679

 

622,571

 

(30,108

)

(5

)%

(30,108

)

(5

)%

(39,117

)

(6

)%

Total Assets Under Administration

 

144,075

 

147,560

 

150,836

 

149,385

 

143,183

 

144,075

 

143,183

 

(892

)

(1

)%

(892

)

(1

)%

(6,202

)

(4

)%

Total AUM and AUA

 

$

796,754

 

$

806,177

 

$

814,774

 

$

811,073

 

$

765,754

 

$

796,754

 

$

765,754

 

$

(31,000

)

(4

)%

$

(31,000

)

(4

)%

$

(45,319

)

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise client assets

 

$

433,804

 

$

444,391

 

$

452,969

 

$

453,336

 

$

433,458

 

$

433,804

 

$

433,458

 

$

(346

)

 

$

(346

)

 

$

(19,878

)

(4

)%

Total branded financial advisors

 

9,696

 

9,672

 

9,691

 

9,721

 

9,814

 

9,696

 

9,814

 

118

 

1

%

118

 

1

%

93

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Flows and Net Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded advisor wrap

 

$

3,834

 

$

3,130

 

$

2,802

 

$

3,278

 

$

2,980

 

$

11,058

 

$

9,060

 

$

(854

)

(22

)%

$

(1,998

)

(18

)%

$

(298

)

(9

)%

Asset Management

 

(4,117

)

5,682

 

(5,821

)

(1,959

)

(7,371

)

(3,590

)

(15,151

)

(3,254

)

(79

)%

(11,561

)

#

 

(5,412

)

#

 

Annuities

 

(740

)

(721

)

(950

)

(901

)

(634

)

(2,471

)

(2,485

)

106

 

14

%

(14

)

(1

)%

267

 

30

%

Variable universal life / Universal life

 

(39

)

(30

)

(48

)

(44

)

(46

)

(108

)

(138

)

(7

)

(18

)%

(30

)

(28

)%

(2

)

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

S&P 500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Daily average

 

1,977

 

2,012

 

2,064

 

2,102

 

2,027

 

1,904

 

2,064

 

50

 

3

%

160

 

8

%

(75

)

(4

)%

Period end

 

1,972

 

2,059

 

2,068

 

2,063

 

1,920

 

1,972

 

1,920

 

(52

)

(3

)%

(52

)

(3

)%

(143

)

(7

)%

 


(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.

# Variance of greater than 100%.

 

7



 

Ameriprise Financial, Inc.

Common Share and Capital Summary

Third Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 3Q

 

YTD Chg - 3Q

 

Seq Qtr Chg - 3Q

 

(in millions unless otherwise noted, unaudited)

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

187.7

 

185.4

 

183.1

 

181.8

 

178.7

 

192.1

 

183.1

 

(9.0

)

(5

)%

(9.0

)

(5

)%

(3.1

)

(2

)%

Repurchases

 

(2.7

)

(2.7

)

(2.6

)

(3.4

)

(3.8

)

(9.1

)

(9.8

)

(1.1

)

(41

)%

(0.7

)

(8

)%

(0.4

)

(12

)%

Issuances

 

0.8

 

0.9

 

2.0

 

0.4

 

0.2

 

4.8

 

2.6

 

(0.6

)

(75

)%

(2.2

)

(46

)%

(0.2

)

(50

)%

Other

 

(0.4

)

(0.5

)

(0.7

)

(0.1

)

(0.1

)

(2.4

)

(0.9

)

0.3

 

75

%

1.5

 

63

%

 

 

Total common shares outstanding

 

185.4

 

183.1

 

181.8

 

178.7

 

175.0

 

185.4

 

175.0

 

(10.4

)

(6

)%

(10.4

)

(6

)%

(3.7

)

(2

)%

Restricted stock units

 

3.7

 

3.8

 

3.3

 

3.4

 

3.4

 

3.7

 

3.4

 

(0.3

)

(8

)%

(0.3

)

(8

)%

 

 

Total basic common shares outstanding

 

189.1

 

186.9

 

185.1

 

182.1

 

178.4

 

189.1

 

178.4

 

(10.7

)

(6

)%

(10.7

)

(6

)%

(3.7

)

(2

)%

Total potentially dilutive shares

 

3.4

 

3.2

 

2.7

 

2.5

 

2.2

 

3.4

 

2.2

 

(1.2

)

(35

)%

(1.2

)

(35

)%

(0.3

)

(12

)%

Total diluted shares

 

192.5

 

190.1

 

187.8

 

184.6

 

180.6

 

192.5

 

180.6

 

(11.9

)

(6

)%

(11.9

)

(6

)%

(4.0

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Returned to Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

$

111

 

$

109

 

$

110

 

$

124

 

$

121

 

$

326

 

$

355

 

$

10

 

9

%

$

29

 

9

%

$

(3

)

(2

)%

Common stock share repurchases

 

$

331

 

$

335

 

$

349

 

$

425

 

$

450

 

$

1,037

 

$

1,224

 

$

119

 

36

%

$

187

 

18

%

$

25

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated Capital (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

$

510

 

$

510

 

$

516

 

$

521

 

$

528

 

$

510

 

$

528

 

$

18

 

4

%

$

18

 

4

%

$

7

 

1

%

Asset Management

 

1,905

 

1,884

 

1,872

 

1,854

 

1,836

 

1,905

 

1,836

 

(69

)

(4

)%

(69

)

(4

)%

(18

)

(1

)%

Annuities

 

1,938

 

1,982

 

1,987

 

1,941

 

1,900

 

1,938

 

1,900

 

(38

)

(2

)%

(38

)

(2

)%

(41

)

(2

)%

Protection

 

1,897

 

1,962

 

1,975

 

2,014

 

2,009

 

1,897

 

2,009

 

112

 

6

%

112

 

6

%

(5

)

 

Corporate & Other

 

3,950

 

3,884

 

3,856

 

3,782

 

3,674

 

3,950

 

3,674

 

(276

)

(7

)%

(276

)

(7

)%

(108

)

(3

)%

Total allocated capital

 

$

10,200

 

$

10,222

 

$

10,206

 

$

10,112

 

$

9,947

 

$

10,200

 

$

9,947

 

$

(253

)

(2

)%

$

(253

)

(2

)%

$

(165

)

(2

)%

 


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

 

8



 

GRAPHIC

Statistical Supplement Package

(unaudited)

 

Third Quarter 2015

 

Segment Results

 

9



 

Ameriprise Financial, Inc.

Segment Summary

Third Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 3Q

 

YTD Chg - 3Q

 

Seq Qtr Chg - 3Q

 

(in millions unless otherwise noted, unaudited)

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Segment Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

1,210

 

$

1,249

 

$

1,228

 

$

1,274

 

$

1,245

 

$

3,557

 

$

3,747

 

$

35

 

3

%

$

190

 

5

%

$

(29

)

(2

)%

Operating expenses

 

1,005

 

1,037

 

1,018

 

1,054

 

1,026

 

2,977

 

3,098

 

21

 

2

%

121

 

4

%

(28

)

(3

)%

Pretax operating earnings

 

$

205

 

$

212

 

$

210

 

$

220

 

$

219

 

$

580

 

$

649

 

$

14

 

7

%

$

69

 

12

%

$

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

510

 

$

510

 

$

516

 

$

521

 

$

528

 

$

510

 

$

528

 

$

18

 

4

%

$

18

 

4

%

$

7

 

1

%

Operating return on allocated capital (1)

 

112.3

%

120.5

%

121.6

%

124.3

%

126.8

%

112.3

%

126.8

%

14.5

%

 

 

14.5

%

 

 

2.5

%

 

 

Pretax operating margin

 

16.9

%

17.0

%

17.1

%

17.3

%

17.6

%

16.3

%

17.3

%

0.7

%

 

 

1.0

%

 

 

0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

839

 

$

830

 

$

807

 

$

832

 

$

782

 

$

2,490

 

$

2,421

 

$

(57

)

(7

)%

$

(69

)

(3

)%

$

(50

)

(6

)%

Operating expenses

 

631

 

632

 

616

 

635

 

602

 

1,900

 

1,853

 

(29

)

(5

)%

(47

)

(2

)%

(33

)

(5

)%

Pretax operating earnings

 

$

208

 

$

198

 

$

191

 

$

197

 

$

180

 

$

590

 

$

568

 

$

(28

)

(13

)%

$

(22

)

(4

)%

$

(17

)

(9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,905

 

$

1,884

 

$

1,872

 

$

1,854

 

$

1,836

 

$

1,905

 

$

1,836

 

$

(69

)

(4

)%

$

(69

)

(4

)%

$

(18

)

(1

)%

Operating return on allocated capital (1)

 

30.1

%

31.3

%

31.5

%

31.9

%

31.2

%

30.1

%

31.2

%

1.1

%

 

 

1.1

%

 

 

(0.7

)%

 

 

Pretax operating margin

 

24.8

%

23.9

%

23.7

%

23.7

%

23.0

%

23.7

%

23.5

%

(1.8

)%

 

 

(0.2

)%

 

 

(0.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

839

 

$

830

 

$

807

 

$

832

 

$

782

 

$

2,490

 

$

2,421

 

$

(57

)

(7

)%

$

(69

)

(3

)%

$

(50

)

(6

)%

Distribution pass thru revenues

 

(233

)

(231

)

(218

)

(219

)

(214

)

(698

)

(651

)

19

 

8

%

47

 

7

%

5

 

2

%

Subadvisory and other pass thru revenues

 

(98

)

(99

)

(103

)

(102

)

(95

)

(301

)

(300

)

3

 

3

%

1

 

 

7

 

7

%

Adjusted operating revenues (2)

 

$

508

 

$

500

 

$

486

 

$

511

 

$

473

 

$

1,491

 

$

1,470

 

$

(35

)

(7

)%

$

(21

)

(1

)%

$

(38

)

(7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

208

 

$

198

 

$

191

 

$

197

 

$

180

 

$

590

 

$

568

 

$

(28

)

(13

)%

$

(22

)

(4

)%

$

(17

)

(9

)%

Operating net investment income

 

(7

)

(6

)

(6

)

(4

)

(1

)

(24

)

(11

)

6

 

86

%

13

 

54

%

3

 

75

%

Amortization of intangibles

 

9

 

8

 

8

 

7

 

6

 

26

 

21

 

(3

)

(33

)%

(5

)

(19

)%

(1

)

(14

)%

Adjusted operating earnings (2)

 

$

210

 

$

200

 

$

193

 

$

200

 

$

185

 

$

592

 

$

578

 

$

(25

)

(12

)%

$

(14

)

(2

)%

$

(15

)

(8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net pretax operating margin (2)(3)

 

41.3

%

40.0

%

39.7

%

39.1

%

39.1

%

39.7

%

39.3

%

(2.2

)%

 

 

(0.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

655

 

$

649

 

$

631

 

$

651

 

$

632

 

$

1,942

 

$

1,914

 

$

(23

)

(4

)%

$

(28

)

(1

)%

$

(19

)

(3

)%

Operating expenses

 

527

 

490

 

459

 

501

 

456

 

1,468

 

1,416

 

(71

)

(13

)%

(52

)

(4

)%

(45

)

(9

)%

Pretax operating earnings

 

$

128

 

$

159

 

$

172

 

$

150

 

$

176

 

$

474

 

$

498

 

$

48

 

38

%

$

24

 

5

%

$

26

 

17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,938

 

$

1,982

 

$

1,987

 

$

1,941

 

$

1,900

 

$

1,938

 

$

1,900

 

$

(38

)

(2

)%

$

(38

)

(2

)%

$

(41

)

(2

)%

Operating return on allocated capital (1)

 

18.3

%

19.3

%

20.7

%

22.1

%

25.6

%

18.3

%

25.6

%

7.3

%

 

 

7.3

%

 

 

3.5

%

 

 

Pretax operating margin

 

19.5

%

24.5

%

27.3

%

23.0

%

27.8

%

24.4

%

26.0

%

8.3

%

 

 

1.6

%

 

 

4.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Protection

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

553

 

$

600

 

$

590

 

$

600

 

$

586

 

$

1,687

 

$

1,776

 

$

33

 

6

%

$

89

 

5

%

$

(14

)

(2

)%

Operating expenses

 

487

 

570

 

539

 

528

 

561

 

1,471

 

1,628

 

74

 

15

%

157

 

11

%

33

 

6

%

Pretax operating earnings

 

$

66

 

$

30

 

$

51

 

$

72

 

$

25

 

$

216

 

$

148

 

$

(41

)

(62

)%

$

(68

)

(31

)%

$

(47

)

(65

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,897

 

$

1,962

 

$

1,975

 

$

2,014

 

$

2,009

 

$

1,897

 

$

2,009

 

$

112

 

6

%

$

112

 

6

%

$

(5

)

 

Operating return on allocated capital (1)

 

11.4

%

9.6

%

9.1

%

8.4

%

6.8

%

11.4

%

6.8

%

(4.6

)%

 

 

(4.6

)%

 

 

(1.6

)%

 

 

Pretax operating margin

 

11.9

%

5.0

%

8.6

%

12.0

%

4.3

%

12.8

%

8.3

%

(7.6

)%

 

 

(4.5

)%

 

 

(7.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate & Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

(1

)

$

1

 

$

(6

)

$

(2

)

$

(4

)

$

3

 

$

(12

)

$

(3

)

#

 

$

(15

)

#

 

$

(2

)

#

 

Operating expenses

 

52

 

48

 

56

 

55

 

38

 

186

 

149

 

(14

)

(27

)%

(37

)

(20

)%

(17

)

(31

)%

Pretax operating loss

 

$

(53

)

$

(47

)

$

(62

)

$

(57

)

$

(42

)

$

(183

)

$

(161

)

$

11

 

21

%

$

22

 

12

%

$

15

 

26

%

 


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

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

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

# Variance of greater than 100%.

 

10



 

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2015

 

Advice & Wealth Management Segment

 

11


 


 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment

Third Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 3Q

 

YTD Chg - 3Q

 

Seq Qtr Chg - 3Q

 

(in millions unless otherwise noted, unaudited)

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

621

 

$

633

 

$

637

 

$

666

 

$

658

 

$

1,780

 

$

1,961

 

$

37

 

6

%

$

181

 

10

%

$

(8

)

(1

)%

Distribution fees

 

544

 

571

 

543

 

561

 

540

 

1,642

 

1,644

 

(4

)

(1

)%

2

 

 

(21

)

(4

)%

Net investment income

 

33

 

35

 

35

 

35

 

38

 

101

 

108

 

5

 

15

%

7

 

7

%

3

 

9

%

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

19

 

17

 

20

 

19

 

16

 

55

 

55

 

(3

)

(16

)%

 

 

(3

)

(16

)%

Total revenues

 

1,217

 

1,256

 

1,235

 

1,281

 

1,252

 

3,578

 

3,768

 

35

 

3

%

190

 

5

%

(29

)

(2

)%

Banking and deposit interest expense

 

7

 

7

 

7

 

7

 

7

 

21

 

21

 

 

 

 

 

 

 

Operating total net revenues

 

1,210

 

1,249

 

1,228

 

1,274

 

1,245

 

3,557

 

3,747

 

35

 

3

%

190

 

5

%

(29

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

742

 

760

 

757

 

783

 

764

 

2,183

 

2,304

 

22

 

3

%

121

 

6

%

(19

)

(2

)%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

1

 

1

 

2

 

2

 

2

 

5

 

6

 

1

 

#

 

1

 

20

%

 

 

General and administrative expense

 

262

 

276

 

259

 

269

 

260

 

789

 

788

 

(2

)

(1

)%

(1

)

 

(9

)

(3

)%

Operating expenses

 

1,005

 

1,037

 

1,018

 

1,054

 

1,026

 

2,977

 

3,098

 

21

 

2

%

121

 

4

%

(28

)

(3

)%

Pretax operating earnings

 

$

205

 

$

212

 

$

210

 

$

220

 

$

219

 

$

580

 

$

649

 

$

14

 

7

%

$

69

 

12

%

$

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

16.9

%

17.0

%

17.1

%

17.3

%

17.6

%

16.3

%

17.3

%

0.7

%

 

 

1.0

%

 

 

0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

510

 

$

510

 

$

516

 

$

521

 

$

528

 

$

510

 

$

528

 

$

18

 

4

%

$

18

 

4

%

$

7

 

1

%

Operating return on allocated capital (1)

 

112.3

%

120.5

%

121.6

%

124.3

%

126.8

%

112.3

%

126.8

%

14.5

%

 

 

14.5

%

 

 

2.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

On-balance sheet deposits

 

$

7,522

 

$

7,674

 

$

7,885

 

$

7,825

 

$

8,049

 

$

7,522

 

$

8,049

 

$

527

 

7

%

$

527

 

7

%

$

224

 

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

# Variance of greater than 100%.

 

12


 


 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment

Third Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 3Q

 

YTD Chg - 3Q

 

Seq Qtr Chg - 3Q

 

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

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates and Banking - Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

9

 

$

10

 

$

10

 

$

15

 

$

11

 

$

30

 

$

36

 

$

2

 

22

%

$

6

 

20

%

$

(4

)

(27

)%

Allocated capital

 

$

237

 

$

236

 

$

241

 

$

243

 

$

251

 

$

237

 

$

251

 

$

14

 

6

%

$

14

 

6

%

$

8

 

3

%

Operating return on allocated capital (1)

 

12.5

%

12.9

%

12.0

%

13.9

%

14.5

%

12.5

%

14.5

%

2.0

%

 

 

2.0

%

 

 

0.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth Management & Distribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

196

 

$

202

 

$

200

 

$

205

 

$

208

 

$

550

 

$

613

 

$

12

 

6

%

$

63

 

11

%

$

3

 

1

%

Allocated capital

 

$

273

 

$

274

 

$

275

 

$

278

 

$

277

 

$

273

 

$

277

 

$

4

 

1

%

$

4

 

1

%

$

(1

)

 

Operating return on allocated capital (1)

 

203.0

%

217.1

%

218.5

%

220.2

%

225.3

%

203.0

%

225.3

%

22.3

%

 

 

22.3

%

 

 

5.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded financial plan net cash sales

 

$

60

 

$

70

 

$

62

 

$

65

 

$

62

 

$

181

 

$

189

 

$

2

 

3

%

$

8

 

4

%

$

(3

)

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Advisors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee advisors

 

2,100

 

2,083

 

2,084

 

2,082

 

2,099

 

2,100

 

2,099

 

(1

)

 

(1

)

 

17

 

1

%

Franchisee advisors

 

7,596

 

7,589

 

7,607

 

7,639

 

7,715

 

7,596

 

7,715

 

119

 

2

%

119

 

2

%

76

 

1

%

Total branded financial advisors

 

9,696

 

9,672

 

9,691

 

9,721

 

9,814

 

9,696

 

9,814

 

118

 

1

%

118

 

1

%

93

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

125

 

$

129

 

$

127

 

$

131

 

$

127

 

$

367

 

$

385

 

$

2

 

2

%

$

18

 

5

%

$

(4

)

(3

)%

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

 

$

483

 

$

496

 

$

505

 

$

512

 

$

514

 

$

483

 

$

514

 

$

31

 

6

%

$

31

 

6

%

$

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisor Retention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee

 

91.9

%

91.2

%

91.0

%

91.1

%

91.0

%

91.9

%

91.0

%

(0.9

)%

 

 

(0.9

)%

 

 

(0.1

)%

 

 

Franchisee

 

94.6

%

94.5

%

94.3

%

94.2

%

94.2

%

94.6

%

94.2

%

(0.4

)%

 

 

(0.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Client Assets (at period end)

 

$

433,804

 

$

444,391

 

$

452,969

 

$

453,336

 

$

433,458

 

$

433,804

 

$

433,458

 

$

(346

)

 

$

(346

)

 

$

(19,878

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Wrap Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

167,805

 

$

169,227

 

$

174,670

 

$

180,044

 

$

181,853

 

$

153,512

 

$

174,670

 

$

14,048

 

8

%

$

21,158

 

14

%

$

1,809

 

1

%

Net flows

 

3,834

 

3,130

 

2,802

 

3,278

 

2,980

 

11,058

 

9,060

 

(854

)

(22

)%

(1,998

)

(18

)%

(298

)

(9

)%

Market appreciation (depreciation) and other

 

(2,412

)

2,313

 

2,572

 

(1,469

)

(11,045

)

4,657

 

(9,942

)

(8,633

)

#

 

(14,599

)

#

 

(9,576

)

#

 

Total wrap ending assets

 

$

169,227

 

$

174,670

 

$

180,044

 

$

181,853

 

$

173,788

 

$

169,227

 

$

173,788

 

$

4,561

 

3

%

$

4,561

 

3

%

$

(8,065

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory wrap account assets ending balance (4)

 

$

168,157

 

$

173,489

 

$

178,749

 

$

180,451

 

$

172,342

 

$

168,157

 

$

172,342

 

4,185

 

2

%

4,185

 

2

%

(8,109

)

(4

)%

 


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

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

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

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

# Variance of greater than 100%.

 

13


 


 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2015

 

Asset Management Segment

 

14



 

Ameriprise Financial, Inc.

Asset Management Segment

Third Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 3Q

 

YTD Chg - 3Q

 

Seq Qtr Chg - 3Q

 

(in millions unless otherwise noted, unaudited)

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

706

 

$

698

 

$

674

 

$

696

 

$

656

 

$

2,093

 

$

2,026

 

$

(50

)

(7

)%

$

(67

)

(3

)%

$

(40

)

(6

)%

Distribution fees

 

124

 

125

 

125

 

128

 

123

 

368

 

376

 

(1

)

(1

)%

8

 

2

%

(5

)

(4

)%

Net investment income

 

7

 

6

 

6

 

4

 

1

 

24

 

11

 

(6

)

(86

)%

(13

)

(54

)%

(3

)

(75

)%

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

2

 

1

 

2

 

4

 

2

 

5

 

8

 

 

 

3

 

60

%

(2

)

(50

)%

Total revenues

 

839

 

830

 

807

 

832

 

782

 

2,490

 

2,421

 

(57

)

(7

)%

(69

)

(3

)%

(50

)

(6

)%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

839

 

830

 

807

 

832

 

782

 

2,490

 

2,421

 

(57

)

(7

)%

(69

)

(3

)%

(50

)

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

288

 

285

 

278

 

278

 

270

 

863

 

826

 

(18

)

(6

)%

(37

)

(4

)%

(8

)

(3

)%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

4

 

3

 

3

 

5

 

4

 

12

 

12

 

 

 

 

 

(1

)

(20

)%

Interest and debt expense

 

6

 

7

 

6

 

7

 

6

 

19

 

19

 

 

 

 

 

(1

)

(14

)%

General and administrative expense

 

333

 

337

 

329

 

345

 

322

 

1,006

 

996

 

(11

)

(3

)%

(10

)

(1

)%

(23

)

(7

)%

Operating expenses

 

631

 

632

 

616

 

635

 

602

 

1,900

 

1,853

 

(29

)

(5

)%

(47

)

(2

)%

(33

)

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

208

 

$

198

 

$

191

 

$

197

 

$

180

 

$

590

 

$

568

 

$

(28

)

(13

)%

$

(22

)

(4

)%

$

(17

)

(9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

24.8

%

23.9

%

23.7

%

23.7

%

23.0

%

23.7

%

23.5

%

(1.8

)%

 

 

(0.2

)%

 

 

(0.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

$

839

 

$

830

 

$

807

 

$

832

 

$

782

 

$

2,490

 

$

2,421

 

$

(57

)

(7

)%

$

(69

)

(3

)%

$

(50

)

(6

)%

Distribution pass thru revenues

 

(233

)

(231

)

(218

)

(219

)

(214

)

(698

)

(651

)

19

 

8

%

47

 

7

%

5

 

2

%

Subadvisory and other pass thru revenues

 

(98

)

(99

)

(103

)

(102

)

(95

)

(301

)

(300

)

3

 

3

%

1

 

 

7

 

7

%

Adjusted operating revenues (1)

 

$

508

 

$

500

 

$

486

 

$

511

 

$

473

 

$

1,491

 

$

1,470

 

$

(35

)

(7

)%

$

(21

)

(1

)%

$

(38

)

(7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

208

 

$

198

 

$

191

 

$

197

 

$

180

 

$

590

 

$

568

 

$

(28

)

(13

)%

$

(22

)

(4

)%

$

(17

)

(9

)%

Operating net investment income

 

(7

)

(6

)

(6

)

(4

)

(1

)

(24

)

(11

)

6

 

86

%

13

 

54

%

3

 

75

%

Amortization of intangibles

 

9

 

8

 

8

 

7

 

6

 

26

 

21

 

(3

)

(33

)%

(5

)

(19

)%

(1

)

(14

)%

Adjusted operating earnings (1)

 

$

210

 

$

200

 

$

193

 

$

200

 

$

185

 

$

592

 

$

578

 

$

(25

)

(12

)%

$

(14

)

(2

)%

$

(15

)

(8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net pretax operating margin (1)(2)

 

41.3

%

40.0

%

39.7

%

39.1

%

39.1

%

39.7

%

39.3

%

(2.2

)%

 

 

(0.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,905

 

$

1,884

 

$

1,872

 

$

1,854

 

$

1,836

 

$

1,905

 

$

1,836

 

$

(69

)

(4

)%

$

(69

)

(4

)%

$

(18

)

(1

)%

Operating return on allocated capital (3)

 

30.1

%

31.3

%

31.5

%

31.9

%

31.2

%

30.1

%

31.2

%

1.1

%

 

 

1.1

%

 

 

(0.7

)%

 

 

 


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

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

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

 

15



 

Ameriprise Financial, Inc.

Asset Management Segment

Third Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 3Q

 

YTD Chg - 3Q

 

Seq Qtr Chg - 3Q

 

(in millions unless otherwise noted, unaudited)

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Total Managed Asset Net Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Columbia managed asset net flows

 

$

(2,317

)

$

7,136

 

$

(3,199

)

$

(285

)

$

(4,994

)

$

(4,804

)

$

(8,478

)

$

(2,677

)

#

 

$

(3,674

)

(76

)%

$

(4,709

)

#

 

Threadneedle managed asset net flows

 

(1,889

)

(1,073

)

(1,116

)

(756

)

(3,633

)

1,118

 

(5,505

)

(1,744

)

(92

)%

(6,623

)

#

 

(2,877

)

#

 

Sub-advised eliminations

 

89

 

(381

)

(1,506

)

(918

)

1,256

 

96

 

(1,168

)

1,167

 

#

 

(1,264

)

#

 

2,174

 

#

 

Total managed asset net flows

 

$

(4,117

)

$

5,682

 

$

(5,821

)

$

(1,959

)

$

(7,371

)

$

(3,590

)

$

(15,151

)

$

(3,254

)

(79

)%

$

(11,561

)

#

 

$

(5,412

)

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Managed Assets Reconciliations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Columbia managed assets

 

$

357,583

 

$

361,190

 

$

364,186

 

$

358,528

 

$

336,236

 

$

357,583

 

$

336,236

 

$

(21,347

)

(6

)%

$

(21,347

)

(6

)%

$

(22,292

)

(6

)%

Threadneedle managed assets

 

150,375

 

147,883

 

147,235

 

150,716

 

139,152

 

150,375

 

139,152

 

(11,223

)

(7

)%

(11,223

)

(7

)%

(11,564

)

(8

)%

Sub-advised eliminations

 

(3,165

)

(3,485

)

(5,111

)

(6,151

)

(4,310

)

(3,165

)

(4,310

)

(1,145

)

(36

)%

(1,145

)

(36

)%

1,841

 

30

%

Total managed assets

 

$

504,793

 

$

505,588

 

$

506,310

 

$

503,093

 

$

471,078

 

$

504,793

 

$

471,078

 

$

(33,715

)

(7

)%

$

(33,715

)

(7

)%

$

(32,015

)

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Managed Assets by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

$

277,341

 

$

278,052

 

$

279,395

 

$

276,974

 

$

248,925

 

$

277,341

 

$

248,925

 

$

(28,416

)

(10

)%

$

(28,416

)

(10

)%

$

(28,049

)

(10

)%

Fixed income

 

194,613

 

193,355

 

192,009

 

188,592

 

184,727

 

194,613

 

184,727

 

(9,886

)

(5

)%

(9,886

)

(5

)%

(3,865

)

(2

)%

Money market

 

6,561

 

6,660

 

6,918

 

7,039

 

6,524

 

6,561

 

6,524

 

(37

)

(1

)%

(37

)

(1

)%

(515

)

(7

)%

Alternative

 

6,982

 

7,453

 

7,372

 

7,941

 

8,272

 

6,982

 

8,272

 

1,290

 

18

%

1,290

 

18

%

331

 

4

%

Hybrid and other

 

19,296

 

20,068

 

20,616

 

22,547

 

22,630

 

19,296

 

22,630

 

3,334

 

17

%

3,334

 

17

%

83

 

 

Total managed assets by type

 

$

504,793

 

$

505,588

 

$

506,310

 

$

503,093

 

$

471,078

 

$

504,793

 

$

471,078

 

$

(33,715

)

(7

)%

$

(33,715

)

(7

)%

$

(32,015

)

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Managed Assets by Type (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

$

284,091

 

$

279,786

 

$

279,148

 

$

280,553

 

$

266,179

 

$

279,012

 

$

274,715

 

$

(17,912

)

(6

)%

$

(4,297

)

(2

)%

$

(14,374

)

(5

)%

Fixed income

 

196,100

 

194,701

 

193,845

 

190,643

 

187,341

 

196,300

 

190,672

 

(8,759

)

(4

)%

(5,628

)

(3

)%

(3,302

)

(2

)%

Money market

 

6,512

 

6,538

 

6,457

 

6,895

 

6,715

 

6,639

 

6,630

 

203

 

3

%

(9

)

 

(180

)

(3

)%

Alternative

 

7,083

 

7,383

 

7,411

 

7,814

 

7,912

 

6,869

 

7,724

 

829

 

12

%

855

 

12

%

98

 

1

%

Hybrid and other

 

19,178

 

19,638

 

20,341

 

21,707

 

22,805

 

17,893

 

21,624

 

3,627

 

19

%

3,731

 

21

%

1,098

 

5

%

Total average managed assets by type

 

$

512,964

 

$

508,046

 

$

507,202

 

$

507,612

 

$

490,952

 

$

506,713

 

$

501,365

 

$

(22,012

)

(4

)%

$

(5,348

)

(1

)%

$

(16,660

)

(3

)%

 


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

# Variance of greater than 100%.

 

16



 

Ameriprise Financial, Inc.

Asset Management Segment - Columbia

Third Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 3Q

 

YTD Chg - 3Q

 

Seq Qtr Chg - 3Q

 

(in millions unless otherwise noted, unaudited)

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Columbia Managed Assets Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

243,796

 

$

237,034

 

$

237,652

 

$

239,501

 

$

234,843

 

$

239,393

 

$

237,652

 

$

(8,953

)

(4

)%

$

(1,741

)

(1

)%

$

(4,658

)

(2

)%

Mutual fund inflows

 

9,147

 

9,545

 

9,227

 

8,776

 

7,871

 

26,409

 

25,874

 

(1,276

)

(14

)%

(535

)

(2

)%

(905

)

(10

)%

Mutual fund outflows

 

(12,002

)

(12,779

)

(12,292

)

(12,811

)

(12,446

)

(34,576

)

(37,549

)

(444

)

(4

)%

(2,973

)

(9

)%

365

 

3

%

Net VP/VIT fund flows

 

(236

)

(255

)

(265

)

(208

)

(163

)

(669

)

(636

)

73

 

31

%

33

 

5

%

45

 

22

%

Net new flows

 

(3,091

)

(3,489

)

(3,330

)

(4,243

)

(4,738

)

(8,836

)

(12,311

)

(1,647

)

(53

)%

(3,475

)

(39

)%

(495

)

(12

)%

Reinvested dividends

 

574

 

8,995

 

469

 

3,571

 

606

 

4,424

 

4,646

 

32

 

6

%

222

 

5

%

(2,965

)

(83

)%

Net flows

 

(2,517

)

5,506

 

(2,861

)

(672

)

(4,132

)

(4,412

)

(7,665

)

(1,615

)

(64

)%

(3,253

)

(74

)%

(3,460

)

#

 

Distributions

 

(709

)

(10,652

)

(595

)

(4,122

)

(734

)

(5,289

)

(5,451

)

(25

)

(4

)%

(162

)

(3

)%

3,388

 

82

%

Market appreciation (depreciation) and other

 

(3,536

)

5,764

 

5,305

 

136

 

(14,076

)

7,342

 

(8,635

)

(10,540

)

#

 

(15,977

)

#

 

(14,212

)

#

 

Total ending assets

 

237,034

 

237,652

 

239,501

 

234,843

 

215,901

 

237,034

 

215,901

 

(21,133

)

(9

)%

(21,133

)

(9

)%

(18,942

)

(8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of total retail assets sub-advised

 

20.2

%

20.2

%

21.6

%

21.8

%

21.5

%

20.2

%

21.5

%

1.4

%

 

 

1.4

%

 

 

(0.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

77,627

 

78,019

 

80,709

 

81,752

 

81,263

 

75,648

 

80,709

 

3,636

 

5

%

5,061

 

7

%

(489

)

(1

)%

Inflows

 

5,512

 

5,806

 

4,946

 

5,140

 

4,352

 

14,660

 

14,438

 

(1,160

)

(21

)%

(222

)

(2

)%

(788

)

(15

)%

Outflows

 

(5,191

)

(4,702

)

(5,301

)

(5,227

)

(5,696

)

(15,516

)

(16,224

)

(505

)

(10

)%

(708

)

(5

)%

(469

)

(9

)%

Net flows

 

321

 

1,104

 

(355

)

(87

)

(1,344

)

(856

)

(1,786

)

(1,665

)

#

 

(930

)

#

 

(1,257

)

#

 

Market appreciation (depreciation) and other (1)

 

71

 

1,586

 

1,398

 

(402

)

(2,646

)

3,227

 

(1,650

)

(2,717

)

#

 

(4,877

)

#

 

(2,244

)

#

 

Total ending assets

 

78,019

 

80,709

 

81,752

 

81,263

 

77,273

 

78,019

 

77,273

 

(746

)

(1

)%

(746

)

(1

)%

(3,990

)

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

6,390

 

6,230

 

6,745

 

6,705

 

7,265

 

5,643

 

6,745

 

875

 

14

%

1,102

 

20

%

560

 

8

%

Inflows

 

4

 

625

 

151

 

588

 

709

 

1,061

 

1,448

 

705

 

#

 

387

 

36

%

121

 

21

%

Outflows

 

(125

)

(99

)

(134

)

(114

)

(227

)

(597

)

(475

)

(102

)

(82

)%

122

 

20

%

(113

)

(99

)%

Net flows

 

(121

)

526

 

17

 

474

 

482

 

464

 

973

 

603

 

#

 

509

 

#

 

8

 

2

%

Market appreciation (depreciation) and other

 

(39

)

(11

)

(57

)

86

 

(99

)

123

 

(70

)

(60

)

#

 

(193

)

#

 

(185

)

#

 

Total ending assets

 

6,230

 

6,745

 

6,705

 

7,265

 

7,648

 

6,230

 

7,648

 

1,418

 

23

%

1,418

 

23

%

383

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliated General Account Assets

 

36,300

 

36,084

 

36,228

 

35,157

 

35,414

 

36,300

 

35,414

 

(886

)

(2

)%

(886

)

(2

)%

257

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Columbia managed assets

 

$

357,583

 

$

361,190

 

$

364,186

 

$

358,528

 

$

336,236

 

$

357,583

 

$

336,236

 

$

(21,347

)

(6

)%

$

(21,347

)

(6

)%

$

(22,292

)

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Columbia net flows

 

$

(2,317

)

$

7,136

 

$

(3,199

)

$

(285

)

$

(4,994

)

$

(4,804

)

$

(8,478

)

$

(2,677

)

#

 

$

(3,674

)

(76

)%

$

(4,709

)

#

 

 


(1)

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

#

Variance of greater than 100%.

 

17



 

Ameriprise Financial, Inc.

Asset Management Segment - Threadneedle

Third Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 3Q

 

YTD Chg - 3Q

 

Seq Qtr Chg - 3Q

 

(in millions unless otherwise noted, unaudited)

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Threadneedle Managed Assets Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

52,082

 

$

48,235

 

$

46,523

 

$

47,124

 

$

48,853

 

$

50,620

 

$

46,523

 

$

(3,229

)

(6

)%

$

(4,097

)

(8

)%

$

1,729

 

4

%

Mutual fund inflows

 

4,832

 

5,799

 

5,555

 

5,538

 

4,000

 

17,585

 

15,093

 

(832

)

(17

)%

(2,492

)

(14

)%

(1,538

)

(28

)%

Mutual fund outflows

 

(5,915

)

(6,322

)

(5,080

)

(4,757

)

(5,226

)

(19,640

)

(15,063

)

689

 

12

%

4,577

 

23

%

(469

)

(10

)%

Net new flows

 

(1,083

)

(523

)

475

 

781

 

(1,226

)

(2,055

)

30

 

(143

)

(13

)%

2,085

 

#

 

(2,007

)

#

 

Reinvested dividends

 

40

 

71

 

33

 

21

 

36

 

104

 

90

 

(4

)

(10

)%

(14

)

(13

)%

15

 

71

%

Net flows

 

(1,043

)

(452

)

508

 

802

 

(1,190

)

(1,951

)

120

 

(147

)

(14

)%

2,071

 

#

 

(1,992

)

#

 

Distributions

 

(147

)

(237

)

(135

)

(186

)

(125

)

(452

)

(446

)

22

 

15

%

6

 

1

%

61

 

33

%

Market appreciation (depreciation)

 

(420

)

807

 

2,381

 

(1,715

)

(1,434

)

(17

)

(768

)

(1,014

)

#

 

(751

)

#

 

281

 

16

%

Foreign currency translation (1)

 

(2,408

)

(2,053

)

(2,345

)

2,999

 

(1,783

)

(770

)

(1,129

)

625

 

26

%

(359

)

(47

)%

(4,782

)

#

 

Other (2)

 

171

 

223

 

192

 

(171

)

205

 

805

 

226

 

34

 

20

%

(579

)

(72

)%

376

 

#

 

Total ending assets

 

48,235

 

46,523

 

47,124

 

48,853

 

44,526

 

48,235

 

44,526

 

(3,709

)

(8

)%

(3,709

)

(8

)%

(4,327

)

(9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

105,293

 

101,388

 

100,652

 

99,444

 

101,187

 

96,065

 

100,652

 

(4,106

)

(4

)%

4,587

 

5

%

1,743

 

2

%

Inflows

 

1,834

 

1,778

 

1,919

 

3,022

 

1,923

 

11,503

 

6,864

 

89

 

5

%

(4,639

)

(40

)%

(1,099

)

(36

)%

Outflows

 

(2,703

)

(2,397

)

(3,542

)

(4,573

)

(4,365

)

(8,406

)

(12,480

)

(1,662

)

(61

)%

(4,074

)

(48

)%

208

 

5

%

Net flows

 

(869

)

(619

)

(1,623

)

(1,551

)

(2,442

)

3,097

 

(5,616

)

(1,573

)

#

 

(8,713

)

#

 

(891

)

(57

)%

Market appreciation (depreciation)

 

1,195

 

3,614

 

4,757

 

(3,923

)

(1,720

)

1,766

 

(886

)

(2,915

)

#

 

(2,652

)

#

 

2,203

 

56

%

Foreign currency translation (1)

 

(4,972

)

(4,312

)

(5,000

)

6,267

 

(3,728

)

(1,826

)

(2,461

)

1,244

 

25

%

(635

)

(35

)%

(9,995

)

#

 

Other

 

741

 

581

 

658

 

950

 

705

 

2,286

 

2,313

 

(36

)

(5

)%

27

 

1

%

(245

)

(26

)%

Total ending assets

 

101,388

 

100,652

 

99,444

 

101,187

 

94,002

 

101,388

 

94,002

 

(7,386

)

(7

)%

(7,386

)

(7

)%

(7,185

)

(7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

774

 

752

 

708

 

667

 

676

 

758

 

708

 

(98

)

(13

)%

(50

)

(7

)%

9

 

1

%

Inflows

 

25

 

 

11

 

2

 

1

 

25

 

14

 

(24

)

(96

)%

(11

)

(44

)%

(1

)

(50

)%

Outflows

 

(2

)

(2

)

(12

)

(9

)

(2

)

(53

)

(23

)

 

 

30

 

57

%

7

 

78

%

Net flows

 

23

 

(2

)

(1

)

(7

)

(1

)

(28

)

(9

)

(24

)

#

 

19

 

68

%

6

 

86

%

Market appreciation (depreciation)

 

(15

)

(17

)

(13

)

(32

)

(32

)

2

 

(77

)

(17

)

#

 

(79

)

#

 

 

 

Foreign currency translation (1)

 

(38

)

(32

)

(33

)

42

 

(24

)

(12

)

(15

)

14

 

37

%

(3

)

(25

)%

(66

)

#

 

Other

 

8

 

7

 

6

 

6

 

5

 

32

 

17

 

(3

)

(38

)%

(15

)

(47

)%

(1

)

(17

)%

Total ending assets

 

752

 

708

 

667

 

676

 

624

 

752

 

624

 

(128

)

(17

)%

(128

)

(17

)%

(52

)

(8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Threadneedle managed assets

 

$

150,375

 

$

147,883

 

$

147,235

 

$

150,716

 

$

139,152

 

$

150,375

 

$

139,152

 

$

(11,223

)

(7

)%

$

(11,223

)

(7

)%

$

(11,564

)

(8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Threadneedle net flows

 

$

(1,889

)

$

(1,073

)

$

(1,116

)

$

(756

)

$

(3,633

)

$

1,118

 

$

(5,505

)

$

(1,744

)

(92

)%

$

(6,623

)

#

 

$

(2,877

)

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Threadneedle net flows excluding legacy insurance mandates

 

$

(1,051

)

$

(286

)

$

(303

)

$

1,903

 

$

(2,823

)

$

3,733

 

$

(1,223

)

$

(1,772

)

#

 

$

(4,956

)

#

 

$

(4,726

)

#

 

 


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

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

# Variance of greater than 100%.

 

18



 

Ameriprise Financial, Inc.

Asset Management Segment - Columbia

Third Quarter 2015

 

Mutual Fund Rankings in top 2 Lipper Quartiles

 

 

 

 

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

Domestic Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

66

%

61

%

55

%

59

%

57

%

 

 

3 year

 

73

%

68

%

65

%

65

%

65

%

 

 

5 year

 

54

%

57

%

54

%

65

%

57

%

Asset weighted

 

1 year

 

62

%

58

%

61

%

64

%

59

%

 

 

3 year

 

68

%

62

%

64

%

68

%

72

%

 

 

5 year

 

60

%

62

%

63

%

74

%

70

%

International Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

73

%

50

%

71

%

77

%

68

%

 

 

3 year

 

59

%

68

%

67

%

77

%

73

%

 

 

5 year

 

60

%

65

%

63

%

70

%

70

%

Asset weighted

 

1 year

 

87

%

74

%

84

%

48

%

35

%

 

 

3 year

 

40

%

45

%

41

%

47

%

42

%

 

 

5 year

 

38

%

45

%

41

%

45

%

40

%

Taxable Fixed Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

44

%

50

%

65

%

58

%

58

%

 

 

3 year

 

56

%

61

%

75

%

65

%

59

%

 

 

5 year

 

59

%

65

%

75

%

71

%

71

%

Asset weighted

 

1 year

 

66

%

71

%

77

%

69

%

72

%

 

 

3 year

 

69

%

83

%

84

%

85

%

82

%

 

 

5 year

 

70

%

83

%

84

%

86

%

85

%

Tax Exempt Fixed Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

94

%

89

%

89

%

94

%

94

%

 

 

3 year

 

94

%

100

%

100

%

100

%

100

%

 

 

5 year

 

100

%

100

%

100

%

100

%

100

%

Asset weighted

 

1 year

 

84

%

78

%

84

%

99

%

99

%

 

 

3 year

 

84

%

100

%

100

%

100

%

100

%

 

 

5 year

 

100

%

100

%

100

%

100

%

100

%

Asset Allocation Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

58

%

58

%

82

%

80

%

90

%

 

 

3 year

 

64

%

64

%

78

%

56

%

67

%

 

 

5 year

 

89

%

89

%

89

%

88

%

88

%

Asset weighted

 

1 year

 

65

%

67

%

89

%

96

%

100

%

 

 

3 year

 

75

%

76

%

77

%

62

%

73

%

 

 

5 year

 

97

%

97

%

97

%

97

%

97

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of 4- or 5-star Morningstar rated funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall

 

 

 

54

 

51

 

48

 

53

 

51

 

3 year

 

 

 

48

 

42

 

43

 

51

 

52

 

5 year

 

 

 

46

 

46

 

50

 

48

 

44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of 4- or 5-star Morningstar rated funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall

 

 

 

51

%

49

%

48

%

52

%

50

%

3 year

 

 

 

46

%

40

%

43

%

50

%

51

%

5 year

 

 

 

47

%

47

%

53

%

51

%

46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of 4- or 5-star Morningstar rated assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall

 

 

 

56

%

55

%

56

%

58

%

58

%

3 year

 

 

 

38

%

35

%

40

%

48

%

57

%

5 year

 

 

 

52

%

54

%

57

%

55

%

54

%

 

Mutual fund performance rankings are based on the performance of Class Z fund shares for Columbia branded mutual funds.  Only funds with Class Z shares are included.  In instances where a fund’s Class Z share does not have a full five year track record (prior to 9-30-15), performance for an older share class of the same fund, typically Class A shares, is utilized for the period before Class Z shares were launched.  No adjustments to the historical track records are made to account for differences in fund expenses between share classes of a fund.  Starting 9-30-2015, legacy RiverSource funds have reached 5 years of Z share performance and will not be appended.  Historical rankings will continue to be appended.

 

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

 

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

 

19



 

Ameriprise Financial, Inc.

Asset Management Segment - Threadneedle

Third Quarter 2015

 

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

 

 

 

 

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

62

%

61

%

71

%

71

%

71

%

 

 

3 year

 

73

%

64

%

68

%

72

%

74

%

 

 

5 year

 

84

%

83

%

83

%

81

%

84

%

Asset weighted

 

1 year

 

57

%

63

%

78

%

63

%

67

%

 

 

3 year

 

61

%

59

%

61

%

58

%

68

%

 

 

5 year

 

84

%

86

%

87

%

86

%

93

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

70

%

65

%

65

%

52

%

56

%

 

 

3 year

 

74

%

68

%

59

%

64

%

68

%

 

 

5 year

 

62

%

68

%

68

%

70

%

71

%

Asset weighted

 

1 year

 

65

%

65

%

63

%

50

%

66

%

 

 

3 year

 

62

%

71

%

37

%

39

%

69

%

 

 

5 year

 

49

%

51

%

47

%

52

%

59

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocation (Managed) Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Equal weighted

 

1 year

 

63

%

57

%

75

%

63

%

63

%

 

 

3 year

 

83

%

83

%

83

%

67

%

86

%

 

 

5 year

 

67

%

83

%

83

%

83

%

83

%

Asset weighted

 

1 year

 

51

%

68

%

79

%

75

%

73

%

 

 

3 year

 

93

%

93

%

93

%

55

%

93

%

 

 

5 year

 

55

%

93

%

93

%

93

%

93

%

 

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



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2015

 

Annuities Segment

 

21



 

Ameriprise Financial, Inc.

Annuities Segment

Third Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 3Q

 

YTD Chg - 3Q

 

Seq Qtr Chg - 3Q

 

(in millions unless otherwise noted, unaudited)

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

191

 

$

193

 

$

190

 

$

192

 

$

187

 

$

563

 

$

569

 

$

(4

)

(2

)%

$

6

 

1

%

$

(5

)

(3

)%

Distribution fees

 

91

 

90

 

89

 

94

 

91

 

270

 

274

 

 

 

4

 

1

%

(3

)

(3

)%

Net investment income

 

235

 

230

 

221

 

218

 

208

 

711

 

647

 

(27

)

(11

)%

(64

)

(9

)%

(10

)

(5

)%

Premiums

 

26

 

25

 

22

 

30

 

25

 

84

 

77

 

(1

)

(4

)%

(7

)

(8

)%

(5

)

(17

)%

Other revenues

 

112

 

111

 

109

 

117

 

121

 

314

 

347

 

9

 

8

%

33

 

11

%

4

 

3

%

Total revenues

 

655

 

649

 

631

 

651

 

632

 

1,942

 

1,914

 

(23

)

(4

)%

(28

)

(1

)%

(19

)

(3

)%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

655

 

649

 

631

 

651

 

632

 

1,942

 

1,914

 

(23

)

(4

)%

(28

)

(1

)%

(19

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

110

 

113

 

108

 

116

 

111

 

326

 

335

 

1

 

1

%

9

 

3

%

(5

)

(4

)%

Interest credited to fixed accounts

 

136

 

133

 

127

 

125

 

125

 

423

 

377

 

(11

)

(8

)%

(46

)

(11

)%

 

 

Benefits, claims, losses and settlement expenses

 

136

 

128

 

115

 

135

 

89

 

335

 

339

 

(47

)

(35

)%

4

 

1

%

(46

)

(34

)%

Amortization of deferred acquisition costs

 

78

 

52

 

43

 

59

 

66

 

183

 

168

 

(12

)

(15

)%

(15

)

(8

)%

7

 

12

%

Interest and debt expense

 

9

 

10

 

10

 

9

 

10

 

28

 

29

 

1

 

11

%

1

 

4

%

1

 

11

%

General and administrative expense

 

58

 

54

 

56

 

57

 

55

 

173

 

168

 

(3

)

(5

)%

(5

)

(3

)%

(2

)

(4

)%

Operating expenses

 

527

 

490

 

459

 

501

 

456

 

1,468

 

1,416

 

(71

)

(13

)%

(52

)

(4

)%

(45

)

(9

)%

Pretax operating earnings

 

$

128

 

$

159

 

$

172

 

$

150

 

$

176

 

$

474

 

$

498

 

$

48

 

38

%

$

24

 

5

%

$

26

 

17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

19.5

%

24.5

%

27.3

%

23.0

%

27.8

%

24.4

%

26.0

%

8.3

%

 

 

1.6

%

 

 

4.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,938

 

$

1,982

 

$

1,987

 

$

1,941

 

$

1,900

 

$

1,938

 

$

1,900

 

$

(38

)

(2

)%

$

(38

)

(2

)%

$

(41

)

(2

)%

Operating return on allocated capital (1)

 

18.3

%

19.3

%

20.7

%

22.1

%

25.6

%

18.3

%

25.6

%

7.3

%

 

 

7.3

%

 

 

3.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market impact on variable annuity guaranteed benefits (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk margin and nonperformance spread impact

 

$

26

 

$

7

 

$

17

 

$

(5

)

$

98

 

$

6

 

$

110

 

$

72

 

#

 

$

104

 

#

 

$

103

 

#

 

Other

 

(17

)

(41

)

(51

)

(31

)

(103

)

(66

)

(185

)

(86

)

#

 

(119

)

#

 

(72

)

#

 

Total VA guaranteed benefit impact excluded from operating earnings

 

$

9

 

$

(34

)

$

(34

)

$

(36

)

$

(5

)

$

(60

)

$

(75

)

$

(14

)

#

 

$

(15

)

(25

)%

$

31

 

86

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total annuity net flows

 

$

(740

)

$

(721

)

$

(950

)

$

(901

)

$

(634

)

$

(2,471

)

$

(2,485

)

$

106

 

14

%

$

(14

)

(1

)%

$

267

 

30

%

 


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

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

# Variance of greater than 100%.

 

22



 

Ameriprise Financial, Inc.

Annuities Segment

Third Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 3Q

 

YTD Chg - 3Q

 

 Seq Qtr Chg - 3Q

 

(in millions unless otherwise noted, unaudited)

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

81

 

$

123

 

$

144

 

$

120

 

$

151

 

$

366

 

$

415

 

$

70

 

86

%

$

49

 

13

%

$

31

 

26

%

Allocated capital (1)

 

$

564

 

$

644

 

$

650

 

$

650

 

$

650

 

$

564

 

$

650

 

$

86

 

15

%

$

86

 

15

%

$

 

 

Operating return on allocated capital (2)

 

33.0

%

34.8

%

41.2

%

48.0

%

64.8

%

33.0

%

64.8

%

31.8

%

 

 

31.8

%

 

 

16.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Annuities (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

47

 

$

36

 

$

28

 

$

30

 

$

25

 

$

108

 

$

83

 

$

(22

)

(47

)%

$

(25

)

(23

)%

$

(5

)

(17

)%

Allocated capital

 

$

1,374

 

$

1,338

 

$

1,337

 

$

1,291

 

$

1,250

 

$

1,374

 

$

1,250

 

$

(124

)

(9

)%

$

(124

)

(9

)%

$

(41

)

(3

)%

Operating return on allocated capital (2)

 

6.6

%

7.7

%

7.6

%

7.9

%

6.9

%

6.6

%

6.9

%

0.3

%

 

 

0.3

%

 

 

(1.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

77,580

 

$

76,141

 

$

76,988

 

$

77,934

 

$

77,137

 

$

75,522

 

$

76,988

 

$

(443

)

(1

)%

$

1,466

 

2

%

$

(797

)

(1

)%

Deposits

 

1,204

 

1,200

 

1,182

 

1,366

 

1,340

 

3,667

 

3,888

 

136

 

11

%

221

 

6

%

(26

)

(2

)%

Withdrawals and terminations

 

(1,630

)

(1,606

)

(1,567

)

(1,704

)

(1,599

)

(4,949

)

(4,870

)

31

 

2

%

79

 

2

%

105

 

6

%

Net flows

 

(426

)

(406

)

(385

)

(338

)

(259

)

(1,282

)

(982

)

167

 

39

%

300

 

23

%

79

 

23

%

Investment performance and interest credited

 

(1,013

)

1,253

 

1,331

 

(459

)

(4,035

)

1,901

 

(3,163

)

(3,022

)

#

 

(5,064

)

#

 

(3,576

)

#

 

Total ending balance - contract accumulation values

 

$

76,141

 

$

76,988

 

$

77,934

 

$

77,137

 

$

72,843

 

$

76,141

 

$

72,843

 

$

(3,298

)

(4

)%

$

(3,298

)

(4

)%

$

(4,294

)

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable annuities fixed sub-accounts

 

$

4,869

 

$

4,860

 

$

4,848

 

$

4,874

 

$

4,913

 

$

4,869

 

$

4,913

 

$

44

 

1

%

$

44

 

1

%

$

39

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Annuities Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

12,581

 

$

12,360

 

$

12,137

 

$

11,658

 

$

11,179

 

$

13,252

 

$

12,137

 

$

(1,402

)

(11

)%

$

(1,115

)

(8

)%

$

(479

)

(4

)%

Deposits

 

38

 

37

 

36

 

35

 

52

 

140

 

123

 

14

 

37

%

(17

)

(12

)%

17

 

49

%

Withdrawals and terminations

 

(352

)

(352

)

(601

)

(598

)

(427

)

(1,329

)

(1,626

)

(75

)

(21

)%

(297

)

(22

)%

171

 

29

%

Net flows

 

(314

)

(315

)

(565

)

(563

)

(375

)

(1,189

)

(1,503

)

(61

)

(19

)%

(314

)

(26

)%

188

 

33

%

Policyholder interest credited

 

93

 

92

 

86

 

84

 

82

 

297

 

252

 

(11

)

(12

)%

(45

)

(15

)%

(2

)

(2

)%

Total ending balance - contract accumulation values

 

$

12,360

 

$

12,137

 

$

11,658

 

$

11,179

 

$

10,886

 

$

12,360

 

$

10,886

 

$

(1,474

)

(12

)%

$

(1,474

)

(12

)%

$

(293

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized interest

 

$

1

 

$

1

 

$

1

 

$

 

$

1

 

$

2

 

$

2

 

$

 

 

$

 

 

$

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payout Annuities Reserve Balance

 

$

2,110

 

$

2,103

 

$

2,088

 

$

2,088

 

$

2,090

 

$

2,110

 

$

2,090

 

$

(20

)

(1

)%

$

(20

)

(1

)%

$

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Equivalent Spread - Fixed Annuities (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross rate of return on invested assets (5)

 

5.0

%

4.9

%

4.7

%

4.8

%

4.7

%

4.9

%

4.7

%

(0.3

)%

 

 

(0.2

)%

 

 

(0.1

)%

 

 

Crediting rate excluding capitalized interest

 

(3.0

)%

(3.0

)%

(3.0

)%

(3.0

)%

(3.0

)%

(3.1

)%

(3.0

)%

 

 

 

0.1

%

 

 

 

 

 

Tax equivalent margin spread

 

2.0

%

1.9

%

1.7

%

1.8

%

1.7

%

1.8

%

1.7

%

(0.3

)%

 

 

(0.1

)%

 

 

(0.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Variable Annuities DAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,692

 

$

1,655

 

$

1,663

 

$

1,670

 

$

1,684

 

$

1,690

 

$

1,663

 

$

(8

)

 

$

(27

)

(2

)%

$

14

 

1

%

Capitalization

 

42

 

42

 

39

 

50

 

48

 

127

 

137

 

6

 

14

%

10

 

8

%

(2

)

(4

)%

Non-operating amortization

 

(7

)

6

 

4

 

4

 

(7

)

3

 

1

 

 

 

(2

)

(67

)%

(11

)

#

 

Amortization per income statement

 

(78

)

(43

)

(33

)

(51

)

(62

)

(162

)

(146

)

16

 

21

%

16

 

10

%

(11

)

(22

)%

Other

 

6

 

3

 

(3

)

11

 

2

 

(3

)

10

 

(4

)

(67

)%

13

 

#

 

(9

)

(82

)%

Total ending balance

 

$

1,655

 

$

1,663

 

$

1,670

 

$

1,684

 

$

1,665

 

$

1,655

 

$

1,665

 

$

10

 

1

%

$

10

 

1

%

$

(19

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Annuities DAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

58

 

$

68

 

$

67

 

$

59

 

$

69

 

$

88

 

$

67

 

$

11

 

19

%

$

(21

)

(24

)%

$

10

 

17

%

Capitalization

 

1

 

1

 

1

 

 

1

 

2

 

2

 

 

 

 

 

1

 

 

Non-operating amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization per income statement

 

 

(9

)

(10

)

(8

)

(4

)

(21

)

(22

)

(4

)

 

(1

)

(5

)%

4

 

50

%

Other

 

9

 

7

 

1

 

18

 

6

 

(1

)

25

 

(3

)

(33

)%

26

 

#

 

(12

)

(67

)%

Total ending balance

 

$

68

 

$

67

 

$

59

 

$

69

 

$

72

 

$

68

 

$

72

 

$

4

 

6

%

$

4

 

6

%

$

3

 

4

%

 


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

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

(3)             Includes payout annuities.

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

(5)             In the 3rd quarter of 2014 through the 3rd quarter of 2015, the Gross rates of return on invested assets were impacted by outstanding repurchase agreements.  Without these positions, the Gross rates of return on invested assets would have been 4.8%, 4.8%, 4.6%, 4.7% and 4.6% respectively.

# Variance of greater than 100%.

 

23



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2015

 

Protection Segment

 

24



 

Ameriprise Financial, Inc.

Protection Segment

Third Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 3Q

 

YTD Chg - 3Q

 

Seq Qtr Chg - 3Q

 

(in millions unless otherwise noted, unaudited)

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

14

 

$

15

 

$

15

 

$

13

 

$

14

 

$

44

 

$

42

 

$

 

 

$

(2

)

(5

)%

$

1

 

8

%

Distribution fees

 

24

 

23

 

23

 

24

 

24

 

69

 

71

 

 

 

2

 

3

%

 

 

Net investment income

 

111

 

115

 

114

 

118

 

118

 

332

 

350

 

7

 

6

%

18

 

5

%

 

 

Premiums

 

329

 

338

 

335

 

341

 

339

 

954

 

1,015

 

10

 

3

%

61

 

6

%

(2

)

(1

)%

Other revenues

 

75

 

109

 

103

 

104

 

91

 

288

 

298

 

16

 

21

%

10

 

3

%

(13

)

(13

)%

Total revenues

 

553

 

600

 

590

 

600

 

586

 

1,687

 

1,776

 

33

 

6

%

89

 

5

%

(14

)

(2

)%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

553

 

600

 

590

 

600

 

586

 

1,687

 

1,776

 

33

 

6

%

89

 

5

%

(14

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

14

 

17

 

13

 

16

 

12

 

44

 

41

 

(2

)

(14

)%

(3

)

(7

)%

(4

)

(25

)%

Interest credited to fixed accounts

 

39

 

39

 

40

 

39

 

42

 

114

 

121

 

3

 

8

%

7

 

6

%

3

 

8

%

Benefits, claims, losses and settlement expenses

 

338

 

400

 

380

 

368

 

384

 

1,016

 

1,132

 

46

 

14

%

116

 

11

%

16

 

4

%

Amortization of deferred acquisition costs

 

26

 

45

 

36

 

35

 

50

 

90

 

121

 

24

 

92

%

31

 

34

%

15

 

43

%

Interest and debt expense

 

6

 

8

 

8

 

8

 

9

 

20

 

25

 

3

 

50

%

5

 

25

%

1

 

13

%

General and administrative expense

 

64

 

61

 

62

 

62

 

64

 

187

 

188

 

 

 

1

 

1

%

2

 

3

%

Operating expenses

 

487

 

570

 

539

 

528

 

561

 

1,471

 

1,628

 

74

 

15

%

157

 

11

%

33

 

6

%

Pretax operating earnings

 

$

66

 

$

30

 

$

51

 

$

72

 

$

25

 

$

216

 

$

148

 

$

(41

)

(62

)%

$

(68

)

(31

)%

$

(47

)

(65

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating margin

 

11.9

%

5.0

%

8.6

%

12.0

%

4.3

%

12.8

%

8.3

%

(7.6

)%

 

 

(4.5

)%

 

 

(7.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated capital

 

$

1,897

 

$

1,962

 

$

1,975

 

$

2,014

 

$

2,009

 

$

1,897

 

$

2,009

 

$

112

 

6

%

$

112

 

6

%

$

(5

)

 

Operating return on allocated capital (1)

 

11.4

%

9.6

%

9.1

%

8.4

%

6.8

%

11.4

%

6.8

%

(4.6

)%

 

 

(4.6

)%

 

 

(1.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market impact on indexed universal life benefits (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk margin and nonperformance spread impact

 

$

6

 

$

1

 

$

 

$

(1

)

$

(6

)

$

12

 

$

(7

)

$

(12

)

#

 

$

(19

)

#

 

$

(5

)

#

 

Other

 

2

 

(16

)

(6

)

6

 

5

 

(3

)

5

 

3

 

#

 

8

 

#

 

(1

)

(17

)%

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

 

$

8

 

$

(15

)

$

(6

)

$

5

 

$

(1

)

$

9

 

$

(2

)

$

(9

)

#

 

$

(11

)

#

 

$

(6

)

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long Term Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

(5

)

$

 

$

(31

)

$

15

 

$

7

 

$

5

 

$

(9

)

$

12

 

#

 

$

(14

)

#

 

$

(8

)

(53

)%

Allocated capital

 

$

522

 

$

536

 

$

556

 

$

580

 

$

568

 

$

522

 

$

568

 

$

46

 

9

%

$

46

 

9

%

$

(12

)

(2

)%

Operating return on allocated capital (1)

 

0.9

%

0.7

%

(4.7

)%

(2.8

)%

(1.1

)%

0.9

%

(1.1

)%

(2.0

)%

 

 

(2.0

)%

 

 

1.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Protection excluding Long Term Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax operating earnings

 

$

71

 

$

30

 

$

82

 

$

57

 

$

18

 

$

211

 

$

157

 

$

(53

)

(75

)%

$

(54

)

(26

)%

$

(39

)

(68

)%

Allocated capital

 

$

1,375

 

$

1,426

 

$

1,419

 

$

1,434

 

$

1,441

 

$

1,375

 

$

1,441

 

$

66

 

5

%

$

66

 

5

%

$

7

 

 

Operating return on allocated capital (1)

 

15.5

%

13.1

%

14.4

%

12.7

%

9.9

%

15.5

%

9.9

%

(5.6

)%

 

 

(5.6

)%

 

 

(2.8

)%

 

 

 


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

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

# Variance of greater than 100%.

 

25



 

Ameriprise Financial, Inc.

Protection Segment

Third Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 3Q

 

YTD Chg - 3Q

 

Seq Qtr Chg - 3Q

 

(in millions unless otherwise noted, unaudited)

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL (1)

 

$

85

 

$

85

 

$

66

 

$

86

 

$

81

 

$

241

 

$

233

 

$

(4

)

(5

)%

$

(8

)

(3

)%

$

(5

)

(6

)%

Term and whole life

 

2

 

3

 

2

 

2

 

2

 

7

 

6

 

 

 

(1

)

(14

)%

 

 

Disability insurance

 

2

 

1

 

1

 

1

 

1

 

4

 

3

 

(1

)

(50

)%

(1

)

(25

)%

 

 

Auto and home

 

274

 

251

 

262

 

270

 

288

 

766

 

820

 

14

 

5

%

54

 

7

%

18

 

7

%

Total cash sales

 

$

363

 

$

340

 

$

331

 

$

359

 

$

372

 

$

1,018

 

$

1,062

 

$

9

 

2

%

$

44

 

4

%

$

13

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL Policyholder Account Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

11,234

 

$

11,124

 

$

11,283

 

$

11,421

 

$

11,408

 

$

10,906

 

$

11,283

 

$

174

 

2

%

$

377

 

3

%

$

(13

)

 

Premiums and deposits

 

258

 

266

 

246

 

260

 

255

 

767

 

761

 

(3

)

(1

)%

(6

)

(1

)%

(5

)

(2

)%

Investment performance and interest

 

(70

)

190

 

186

 

30

 

(431

)

326

 

(215

)

(361

)

#

 

(541

)

#

 

(461

)

#

 

Withdrawals and surrenders

 

(297

)

(296

)

(294

)

(304

)

(301

)

(875

)

(899

)

(4

)

(1

)%

(24

)

(3

)%

3

 

1

%

Other

 

(1

)

(1

)

 

1

 

 

 

1

 

1

 

#

 

1

 

 

(1

)

#

 

Total ending balance

 

$

11,124

 

$

11,283

 

$

11,421

 

$

11,408

 

$

10,931

 

$

11,124

 

$

10,931

 

$

(193

)

(2

)%

$

(193

)

(2

)%

$

(477

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums by Product

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term and whole life

 

$

12

 

$

12

 

$

11

 

$

12

 

$

6

 

$

36

 

$

29

 

$

(6

)

(50

)%

$

(7

)

(19

)%

$

(6

)

(50

)%

Disability insurance

 

38

 

38

 

37

 

38

 

37

 

115

 

112

 

(1

)

(3

)%

(3

)

(3

)%

(1

)

(3

)%

Long term care

 

28

 

30

 

27

 

27

 

27

 

84

 

81

 

(1

)

(4

)%

(3

)

(4

)%

 

 

Auto and home

 

245

 

253

 

254

 

259

 

264

 

702

 

777

 

19

 

8

%

75

 

11

%

5

 

2

%

Intercompany premiums

 

6

 

5

 

6

 

5

 

5

 

17

 

16

 

(1

)

(17

)%

(1

)

(6

)%

 

 

Total premiums by product

 

$

329

 

$

338

 

$

335

 

$

341

 

$

339

 

$

954

 

$

1,015

 

$

10

 

3

%

$

61

 

6

%

$

(2

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto and Home Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy count (thousands)

 

912

 

929

 

943

 

952

 

958

 

912

 

958

 

46

 

5

%

46

 

5

%

6

 

1

%

Loss ratio

 

85.6

%

106.2

%

90.1

%

97.5

%

93.2

%

91.7

%

93.6

%

7.6

%

 

 

1.9

%

 

 

(4.3

)%

 

 

Expense ratio

 

14.7

%

15.6

%

15.5

%

15.9

%

15.0

%

15.2

%

15.5

%

0.3

%

 

 

0.3

%

 

 

(0.9

)%

 

 

Combined ratio

 

100.3

%

121.8

%

105.6

%

113.4

%

108.2

%

106.9

%

109.1

%

7.9

%

 

 

2.2

%

 

 

(5.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DAC Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life and Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

835

 

$

854

 

$

851

 

$

845

 

$

876

 

$

859

 

$

851

 

$

41

 

5

%

$

(8

)

(1

)%

$

31

 

4

%

Capitalization

 

24

 

22

 

20

 

20

 

22

 

66

 

62

 

(2

)

(8

)%

(4

)

(6

)%

2

 

10

%

Non-operating amortization

 

(1

)

8

 

3

 

1

 

(6

)

1

 

(2

)

(5

)

#

 

(3

)

#

 

(7

)

#

 

Amortization per income statement

 

(11

)

(29

)

(20

)

(19

)

(34

)

(46

)

(73

)

(23

)

#

 

(27

)

(59

)%

(15

)

(79

)%

Other

 

7

 

(4

)

(9

)

29

 

9

 

(26

)

29

 

2

 

29

%

55

 

#

 

(20

)

(69

)%

Total ending balance

 

$

854

 

$

851

 

$

845

 

$

876

 

$

867

 

$

854

 

$

867

 

$

13

 

2

%

$

13

 

2

%

$

(9

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life Insurance in Force

 

$

195,155

 

$

195,510

 

$

195,694

 

$

195,838

 

$

195,862

 

$

195,155

 

$

195,862

 

$

707

 

 

$

707

 

 

$

24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Amount at Risk

 

$

40,600

 

$

40,552

 

$

40,331

 

$

40,340

 

$

40,789

 

$

40,600

 

$

40,789

 

$

189

 

 

$

189

 

 

$

449

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Policyholder Reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL

 

$

10,295

 

$

10,476

 

$

10,631

 

$

10,621

 

$

10,148

 

$

10,295

 

$

10,148

 

$

(147

)

(1

)%

$

(147

)

(1

)%

$

(473

)

(4

)%

Term and whole life

 

218

 

216

 

215

 

214

 

213

 

218

 

213

 

(5

)

(2

)%

(5

)

(2

)%

(1

)

 

Disability insurance

 

537

 

538

 

532

 

533

 

527

 

537

 

527

 

(10

)

(2

)%

(10

)

(2

)%

(6

)

(1

)%

Long term care and other

 

2,723

 

2,738

 

2,778

 

2,766

 

2,770

 

2,723

 

2,770

 

47

 

2

%

47

 

2

%

4

 

 

Auto and home loss and LAE reserves

 

428

 

473

 

493

 

507

 

504

 

428

 

504

 

76

 

18

%

76

 

18

%

(3

)

(1

)%

Total net policyholder reserves

 

$

14,201

 

$

14,441

 

$

14,649

 

$

14,641

 

$

14,162

 

$

14,201

 

$

14,162

 

$

(39

)

 

$

(39

)

 

$

(479

)

(3

)%

 


(1)    Includes lump sum deposits.

# Variance of greater than 100%.

 

26



 

GRAPHIC

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2015

 

Corporate & Other Segment

 

27



 

Ameriprise Financial, Inc.

Corporate & Other Segment

Third Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 3Q

 

YTD Chg - 3Q

 

Seq Qtr Chg - 3Q

 

(in millions unless otherwise noted, unaudited)

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

Distribution fees

 

 

 

 

 

 

1

 

 

 

 

(1

)

#

 

 

 

Net investment income

 

(3

)

(2

)

(7

)

(10

)

(5

)

(4

)

(22

)

(2

)

(67

)%

(18

)

#

 

5

 

50

%

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

2

 

3

 

1

 

8

 

1

 

6

 

10

 

(1

)

(50

)%

4

 

67

%

(7

)

(88

)%

Total revenues

 

(1

)

1

 

(6

)

(2

)

(4

)

3

 

(12

)

(3

)

#

 

(15

)

#

 

(2

)

#

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

(1

)

1

 

(6

)

(2

)

(4

)

3

 

(12

)

(3

)

#

 

(15

)

#

 

(2

)

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

1

 

 

 

 

 

1

 

 

(1

)

#

 

(1

)

#

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

3

 

5

 

5

 

4

 

3

 

16

 

12

 

 

 

(4

)

(25

)%

(1

)

(25

)%

General and administrative expense

 

48

 

43

 

51

 

51

 

35

 

169

 

137

 

(13

)

(27

)%

(32

)

(19

)%

(16

)

(31

)%

Operating expenses

 

52

 

48

 

56

 

55

 

38

 

186

 

149

 

(14

)

(27

)%

(37

)

(20

)%

(17

)

(31

)%

Pretax operating loss

 

$

(53

)

$

(47

)

$

(62

)

$

(57

)

$

(42

)

$

(183

)

$

(161

)

$

11

 

21

%

$

22

 

12

%

$

15

 

26

%

 


# Variance of greater than 100%.

 

28



 

Ameriprise Financial, Inc.

Eliminations (1)

Third Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 3Q

 

YTD Chg - 3Q

 

Seq Qtr Chg - 3Q

 

(in millions unless otherwise noted, unaudited)

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

2014

 

2015

 

Diff.

 

%

 

Diff.

 

%

 

Diff.

 

%

 

Operating Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

(34

)

$

(34

)

$

(34

)

$

(34

)

$

(35

)

$

(101

)

$

(103

)

$

(1

)

(3)

%

$

(2

)

(2

)%

$

(1

)

(3

)%

Distribution fees

 

(319

)

(325

)

(314

)

(335

)

(327

)

(940

)

(976

)

(8

)

(3)

%

(36

)

(4

)%

8

 

2

%

Net investment income

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

Premiums

 

(4

)

(4

)

(4

)

(3

)

(4

)

(12

)

(11

)

 

 

1

 

8

%

(1

)

(33

)%

Other revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

(357

)

(364

)

(352

)

(372

)

(366

)

(1,053

)

(1,090

)

(9

)

(3)

%

(37

)

(4

)%

6

 

2

%

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

(357

)

(364

)

(352

)

(372

)

(366

)

(1,053

)

(1,090

)

(9

)

(3)

%

(37

)

(4

)%

6

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

(342

)

(348

)

(337

)

(358

)

(351

)

(1,008

)

(1,046

)

(9

)

(3)

%

(38

)

(4

)%

7

 

2

%

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

(15

)

(16

)

(15

)

(14

)

(15

)

(45

)

(44

)

 

 

1

 

2

%

(1

)

(7

)%

Operating expenses

 

(357

)

(364

)

(352

)

(372

)

(366

)

(1,053

)

(1,090

)

(9

)

(3)

%

(37

)

(4

)%

6

 

2

%

Pretax operating earnings

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

 


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

 

29



 

GRAPHIC

 

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2015

 

Balance Sheet and Ratings Information

 

30



 

Ameriprise Financial, Inc.

Consolidated Balance Sheets

Third Quarter 2015

 

(in millions, unaudited)

 

September 30, 2014

 

December 31, 2014

 

March 31, 2015

 

June 30, 2015

 

September 30, 2015

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,876

 

$

2,638

 

$

2,809

 

$

2,570

 

$

2,780

 

Cash of consolidated investment entities

 

279

 

390

 

338

 

471

 

790

 

Investments

 

35,899

 

35,582

 

35,726

 

34,896

 

34,746

 

Investments of consolidated investment entities

 

5,661

 

6,148

 

6,090

 

6,594

 

6,977

 

Separate account assets

 

82,420

 

83,256

 

84,243

 

83,704

 

78,636

 

Receivables

 

4,827

 

4,887

 

5,063

 

5,178

 

5,187

 

Receivables of consolidated investment entities

 

68

 

140

 

77

 

89

 

102

 

Deferred acquisition costs

 

2,605

 

2,608

 

2,602

 

2,658

 

2,634

 

Restricted and segregated cash and investments

 

2,382

 

2,614

 

2,714

 

2,491

 

2,703

 

Other assets

 

8,158

 

8,611

 

9,896

 

8,166

 

8,625

 

Other assets of consolidated investment entities

 

2,018

 

1,936

 

1,890

 

1,989

 

2,140

 

Total Assets

 

$

147,193

 

$

148,810

 

$

151,448

 

$

148,806

 

$

145,320

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Policyholder account balances, future policy benefits and claims

 

$

29,810

 

$

30,350

 

$

30,482

 

$

29,345

 

$

30,046

 

Separate account liabilities

 

82,420

 

83,256

 

84,243

 

83,704

 

78,636

 

Customer deposits

 

7,513

 

7,664

 

7,878

 

7,820

 

8,046

 

Short-term borrowings

 

200

 

200

 

200

 

200

 

200

 

Long-term debt

 

3,059

 

3,062

 

3,066

 

3,055

 

3,019

 

Debt of consolidated investment entities

 

6,394

 

6,867

 

6,779

 

7,353

 

7,926

 

Accounts payable and accrued expenses

 

1,411

 

1,482

 

1,275

 

1,341

 

1,435

 

Accounts payable and accrued expenses of consolidated investment entities

 

50

 

41

 

46

 

53

 

62

 

Other liabilities

 

6,882

 

6,357

 

8,068

 

6,669

 

6,567

 

Other liabilities of consolidated investment entities

 

114

 

226

 

152

 

270

 

562

 

Total Liabilities

 

137,853

 

139,505

 

142,189

 

139,810

 

136,499

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial

 

 

 

 

 

 

 

 

 

 

 

Common shares ($.01 par)

 

3

 

3

 

3

 

3

 

3

 

Additional paid-in capital

 

7,232

 

7,345

 

7,423

 

7,500

 

7,557

 

Retained earnings

 

8,152

 

8,469

 

8,752

 

9,043

 

9,319

 

Appropriated retained earnings of consolidated investment entities

 

308

 

234

 

279

 

257

 

174

 

Treasury stock

 

(8,181

)

(8,589

)

(8,966

)

(9,428

)

(9,885

)

Accumulated other comprehensive income, net of tax

 

746

 

662

 

704

 

500

 

461

 

Total Ameriprise Financial Shareholders’ Equity

 

8,260

 

8,124

 

8,195

 

7,875

 

7,629

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests

 

1,080

 

1,181

 

1,064

 

1,121

 

1,192

 

Total Equity

 

9,340

 

9,305

 

9,259

 

8,996

 

8,821

 

Total Liabilities and Equity

 

$

147,193

 

$

148,810

 

$

151,448

 

$

148,806

 

$

145,320

 

 

31



 

Ameriprise Financial, Inc.

Capital and Ratings Information

Third Quarter 2015

 

(in millions unless otherwise noted, unaudited)

 

September 30, 2014

 

December 31, 2014

 

March 31, 2015

 

June 30, 2015

 

September 30, 2015

 

Long-term Debt Summary

 

 

 

 

 

 

 

 

 

 

 

Senior notes

 

$

2,765

 

$

2,768

 

$

2,772

 

$

2,761

 

$

2,766

 

Junior subordinated notes

 

294

 

294

 

294

 

294

 

253

 

Total Ameriprise Financial long-term debt

 

3,059

 

3,062

 

3,066

 

3,055

 

3,019

 

Non-recourse debt of consolidated investment entities

 

6,394

 

6,867

 

6,779

 

7,353

 

7,926

 

Total long-term debt

 

$

9,453

 

$

9,929

 

$

9,845

 

$

10,408

 

$

10,945

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt

 

$

3,059

 

$

3,062

 

$

3,066

 

$

3,055

 

$

3,019

 

Fair value of hedges and unamortized discount

 

(65

)

(68

)

(72

)

(61

)

(66

)

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

 

$

2,994

 

$

2,994

 

$

2,994

 

$

2,994

 

$

2,953

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity (2)

 

$

9,340

 

$

9,305

 

$

9,259

 

$

8,996

 

$

8,821

 

Noncontrolling interests

 

(1,080

)

(1,181

)

(1,064

)

(1,121

)

(1,192

)

Total Ameriprise Financial shareholders’ equity

 

8,260

 

8,124

 

8,195

 

7,875

 

7,629

 

Equity of consolidated investment entities

 

(296

)

(222

)

(266

)

(243

)

(162

)

Total Ameriprise Financial shareholders’ equity excluding CIEs (1)

 

$

7,964

 

$

7,902

 

$

7,929

 

$

7,632

 

$

7,467

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial capital

 

$

11,319

 

$

11,186

 

$

11,261

 

$

10,930

 

$

10,648

 

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

 

$

10,958

 

$

10,896

 

$

10,923

 

$

10,626

 

$

10,420

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to capital

 

 

 

 

 

 

 

 

 

 

 

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

 

27.0

%

27.4

%

27.2

%

28.0

%

28.4

%

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

 

27.3

%

27.5

%

27.4

%

28.2

%

28.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Ratings (as of September 30, 2015 earnings release date)

 

A.M. Best
Company

 

Standard & Poor’s Rating
Services

 

Moody’s Investors
Service, Inc.

 

 

 

 

 

Claims Paying Ratings (3)

 

 

 

 

 

 

 

 

 

 

 

RiverSource Life Insurance Company

 

A+

 

AA-

 

Aa3

 

 

 

 

 

IDS Property Casualty Ins. Company

 

A

 

N/R

 

N/R

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Ratings (3)

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

 

a-

 

A

 

A3

 

 

 

 

 

 


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

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

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

N/R - Not Rated.

 

32


 


 

Ameriprise Financial, Inc.

Ameriprise Financial Investments (1)

Third Quarter 2015

 

(in millions unless otherwise noted, unaudited)

 

September 30, 2014

 

December 31, 2014

 

March 31, 2015

 

June 30, 2015

 

September 30, 2015

 

Cash and cash equivalents

 

$

2,876

 

$

2,638

 

$

2,809

 

$

2,570

 

$

2,780

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments - Ending Balances

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale Securities

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

17,322

 

17,165

 

17,218

 

16,919

 

16,898

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage backed securities

 

6,232

 

6,207

 

6,270

 

6,121

 

6,008

 

Commercial mortgage backed securities

 

2,637

 

2,630

 

2,694

 

2,562

 

2,499

 

Asset backed securities

 

1,488

 

1,470

 

1,405

 

1,321

 

1,302

 

Total mortgage and other asset backed securities

 

10,357

 

10,307

 

10,369

 

10,004

 

9,809

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal obligations

 

2,257

 

2,239

 

2,243

 

2,190

 

2,259

 

US government and agencies obligations

 

47

 

47

 

56

 

56

 

72

 

Foreign government bonds and obligations

 

253

 

251

 

245

 

239

 

230

 

Common and preferred stocks

 

20

 

18

 

19

 

19

 

18

 

Total other

 

2,577

 

2,555

 

2,563

 

2,504

 

2,579

 

Total available-for-sale securities

 

30,256

 

30,027

 

30,150

 

29,427

 

29,286

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage loans

 

2,714

 

2,729

 

2,683

 

2,735

 

2,757

 

Allowance for loan losses

 

(25

)

(25

)

(23

)

(23

)

(22

)

Commercial mortgage loans, net

 

2,689

 

2,704

 

2,660

 

2,712

 

2,735

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

771

 

739

 

710

 

679

 

649

 

Allowance for loan losses

 

(3

)

(3

)

(2

)

(3

)

(2

)

Residential mortgage loans, net

 

768

 

736

 

708

 

676

 

647

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy loans

 

805

 

806

 

813

 

817

 

824

 

Other investments

 

1,381

 

1,309

 

1,395

 

1,264

 

1,254

 

Total investments

 

35,899

 

35,582

 

35,726

 

34,896

 

34,746

 

Total cash, cash equivalents and investments

 

$

38,775

 

$

38,220

 

$

38,535

 

$

37,466

 

$

37,526

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gain Available-for-Sale Securities

 

$

1,985

 

$

1,961

 

$

2,178

 

$

1,500

 

$

1,393

 

 

 

 

 

 

 

 

 

 

 

 

 

AFS Fixed Maturity Asset Quality - %

 

 

 

 

 

 

 

 

 

 

 

AAA

 

26

%

26

%

26

%

25

%

25

%

AA

 

6

%

6

%

6

%

6

%

6

%

AFS securities AA and above

 

32

%

32

%

32

%

31

%

31

%

A

 

22

%

22

%

21

%

21

%

20

%

BBB

 

40

%

40

%

41

%

42

%

44

%

Below investment grade

 

6

%

6

%

6

%

6

%

5

%

Total AFS fixed maturity asset quality - %

 

100

%

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

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

 

6

%

6

%

6

%

6

%

5

%

 


(1)              Investments excluding investments of CIEs.

 

33



 

Ameriprise Financial, Inc.

 

Non-GAAP Financial Information

 

Ameriprise Financial, Inc. (the Company) prepares its financial statements in accordance with accounting principles generally accepted in the United States (U.S. GAAP).  This report includes information on both a U.S. GAAP and non-GAAP basis.  Management believes that the presentation of these non-GAAP financial measures best reflect the underlying performance of the Company and facilitate a more meaningful trend analysis.  Management uses certain of these non-GAAP measures to evaluate our financial performance on a basis comparable to that used by some securities analysts and investors. Also, certain of these non-GAAP measures are taken into consideration, to varying degrees, for purposes of business planning and analysis and certain compensation-related matters.  See the reconciliations on pages 6, 15, 44 and 45.

 

These non-GAAP measures include:

 

· Adjusted net pretax operating margin;

· Adjusted operating earnings;

· Adjusted operating revenues;

· Ameriprise Financial shareholders’ equity excluding AOCI;

· Ameriprise Financial shareholders’ equity excluding CIEs;

· Ameriprise Financial shareholders’ equity excluding CIEs and AOCI;

· Basic operating earnings per share;

· Effective tax rate excluding noncontrolling interests;

· Operating earnings;

· Operating earnings per diluted share;

· Operating effective tax rate;

· Operating return on equity excluding AOCI;

· Operating total net revenues;

· Pretax operating earnings;

· Pretax operating margin;

· Return on equity excluding AOCI;

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

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

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

 

Reclassification

 

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

 

34


 


 

Ameriprise Financial, Inc.

Glossary of Selected Terminology - Segments

 

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

 

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

 

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

 

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

 

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

 

35


 


 

Ameriprise Financial, Inc.

Glossary of Selected Terminology

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Total Ameriprise Financial Capital - Total Ameriprise Financial shareholders’ equity plus total Ameriprise Financial long-term debt. Total Ameriprise Financial capital is also presented excluding fair value of hedges, unamortized discount 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 fee-based “wrap account” programs or services. We offer clients the opportunity to select products that include affiliated and non-affiliated funds. We currently offer both discretionary and non-discretionary wrap accounts. In a discretionary wrap account, an unaffiliated investment advisor or our investment management subsidiary, Columbia Management Investment Advisers, LLC, chooses the underlying investments in the portfolio on behalf of the client. In a non-discretionary wrap account, the client chooses the underlying investments in the portfolio based, to the extent the client elects, in part or whole on the recommendations of their financial advisor. Investors in our wrap accounts generally pay a fee based on the advisory assets held in their wrap accounts. These investors also pay any related fees or costs included in the underlying securities held in that account, such as underlying mutual fund operating expenses and Rule 12b-1 fees.

 

36


 


 

Exhibit A

 

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2015

 

Disclosed Items

 

37


 


 

Ameriprise Financial, Inc.

Disclosed Items

3 Qtr 2015

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth
Management

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

 

 

Market Impact on

 

 

 

Market Impact on

 

 

 

 

 

Market Impact

 

 

 

Securities

 

Securities

 

VA Guaranteed

 

Securities

 

Indexed Universal

 

 

 

Integration

 

of Hedges

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Gains/(Losses) (1)

 

Life Benefits (3)

 

CIEs (4)

 

Charges (5)

 

on Investments (6)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

(15

)

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

 

 

Net investment income

 

(1

)

(8

)

 

(1

)

 

2

 

 

(31

)

Premiums

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

9

 

56

 

 

 

Total revenues

 

(1

)

(8

)

 

(1

)

9

 

43

 

 

(31

)

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

Total net revenues

 

(1

)

(8

)

 

(1

)

9

 

43

 

 

(31

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

4

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

(2

)

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

7

 

 

6

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

68

 

 

 

General and administrative expense

 

 

 

 

 

 

20

 

3

 

 

Total expenses

 

 

 

5

 

 

10

 

88

 

3

 

 

Pretax segment income (loss)

 

(1

)

(8

)

(5

)

(1

)

(1

)

(45

)

(3

)

(31

)

Less: Net income (loss) attributable to noncontrolling interest

 

 

 

 

 

 

(45

)

 

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

(1

)

$

(8

)

$

(5

)

$

(1

)

$

(1

)

$

 

$

(3

)

$

(31

)

 

Included in Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

Protection

 

 

 

 

 

 

 

Market

 

Valuation

 

Market

 

Valuation

 

Long Term

 

Life Reinsurance

 

 

 

 

 

 

 

Impacts

 

Assumptions &

 

Impacts

 

Assumptions &

 

Care

 

Premium

 

 

 

 

 

(in millions, unaudited)

 

to DAC/DSIC (7)

 

Model Changes (8)

 

to DAC/DSIC (7)

 

Model Changes (8)

 

Reserves (9)

 

Correction (10)

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

 

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

Premiums

 

 

 

 

(3

)

 

(4

)

 

 

 

 

Other revenues

 

 

 

 

(5

)

 

(9

)

 

 

 

 

Total revenues

 

 

 

 

(8

)

 

(13

)

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

 

 

 

(8

)

 

(13

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

(2

)

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

6

 

(61

)

 

6

 

(13

)

 

 

 

 

 

Amortization of deferred acquisition costs

 

23

 

(5

)

2

 

10

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

29

 

(66

)

2

 

16

 

(13

)

(2

)

 

 

 

 

Pretax operating earnings

 

$

(29

)

$

66

 

$

(2

)

$

(24

)

$

13

 

$

(11

)

 

 

 

 

 


(1)

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

(2)

Variable annuity guaranteed benefit impacts include:

 

$4 million net benefit related to hedged variable annuity benefits

 

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

(3)

Indexed universal life benefit impacts include:

 

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

 

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

 

$9 million increase in unearned revenue reserve amortization and reinsurance accrual from hedged indexed universal life benefits

(4)

Reflects revenues and expenses of Consolidated Investment Entities

(5)

Integration charges related to JHS Capital Advisors acquisition

(6)

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

(7)

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

(8)

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

(9)

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

(10)

Accrual established for ceded reinsurance

 

38



 

Ameriprise Financial, Inc.

Disclosed Items

2 Qtr 2015

 

Excluded from Operating Earnings

 

 

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

Market Impact on

 

 

 

Market Impact on

 

 

 

 

 

Market Impact

 

 

 

Securities

 

VA Guaranteed

 

Securities

 

Indexed Universal

 

 

 

Integration

 

of Hedges

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Gains/(Losses) (1)

 

Life Benefits (3)

 

CIEs (4)

 

Charges (5)

 

on Investments (6)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

(15

)

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

 

Net investment income

 

3

 

 

2

 

 

54

 

 

(1

)

Premiums

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

102

 

 

 

Total revenues

 

3

 

 

2

 

 

141

 

 

(1

)

Banking and deposit interest expense

 

 

 

 

 

 

 

 

Total net revenues

 

3

 

 

2

 

 

141

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

(4

)

 

 

 

Benefits, claims, losses and settlement expenses

 

 

40

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

(4

)

 

(1

)

 

 

 

Interest and debt expense

 

 

 

 

 

59

 

 

 

General and administrative expense

 

 

 

 

 

21

 

1

 

 

Total expenses

 

 

36

 

 

(5

)

80

 

1

 

 

Pretax segment income (loss)

 

3

 

(36

)

2

 

5

 

61

 

(1

)

(1

)

Less: Net income (loss) attributable to noncontrolling interest

 

 

 

 

 

61

 

 

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

3

 

$

(36

)

$

2

 

$

5

 

$

 

$

(1

)

$

(1

)

 

Included in Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities

 

Protection

 

 

 

 

 

 

 

 

 

Market

 

 

 

 

 

Auto & Home

 

 

 

 

 

 

 

 

 

Impacts

 

Variable Annuity

 

Long Term Care

 

Catastrophe

 

 

 

 

 

 

 

(in millions, unaudited)

 

to DAC/DSIC (7)

 

Product Changes (8)

 

Reserves (9)

 

Losses (10)

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

 

 

 

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

 

 

 

 

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

1

 

(2

)

(18

)

48

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

4

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

5

 

(2

)

(18

)

48

 

 

 

 

 

 

 

Pretax operating earnings

 

$

(5

)

$

2

 

$

18

 

$

(48

)

 

 

 

 

 

 

 


(1)

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

(2)

Variable annuity guaranteed benefit impacts include:

 

$39 million net expense related to hedged variable annuity benefits

 

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

(3)

Indexed universal life benefit impacts include:

 

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

 

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

(4)

Reflects revenues and expenses of Consolidated Investment Entities

(5)

Integration charges related to JHS Capital Advisors acquisition

(6)

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

(7)

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

(8)

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

(9)

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

(10)

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

 

39



 

Ameriprise Financial, Inc.

Disclosed Items

1 Qtr 2015

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth
Management

 

Annuities

 

Protection

 

Corporate and
Eliminations

 

 

 

 

 

 

 

Market Impact on

 

 

 

Market Impact on

 

 

 

 

 

Securities

 

Securities

 

VA Guaranteed

 

Securities

 

Indexed Universal

 

 

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Gains/(Losses) (1)

 

Life Benefits (3)

 

CIEs (4)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

(14

)

Distribution fees

 

 

 

 

 

 

 

Net investment income

 

(1

)

7

 

 

4

 

 

105

 

Premiums

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

(4

)

58

 

Total revenues

 

(1

)

7

 

 

4

 

(4

)

149

 

Banking and deposit interest expense

 

 

 

 

 

 

 

Total net revenues

 

(1

)

7

 

 

4

 

(4

)

149

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

5

 

 

Benefits, claims, losses and settlement expenses

 

 

 

38

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

(4

)

 

(3

)

 

Interest and debt expense

 

 

 

 

 

 

53

 

General and administrative expense

 

 

 

 

 

 

10

 

Total expenses

 

 

 

34

 

 

2

 

63

 

Pretax segment income (loss)

 

(1

)

7

 

(34

)

4

 

(6

)

86

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

 

 

 

 

86

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

(1

)

$

7

 

$

(34

)

$

4

 

$

(6

)

$

 

 

Included in Operating Earnings

 

 

 

Annuities

 

Protection

 

 

 

Market

 

 

 

Market

 

 

 

Disability Insurance

 

Auto & Home

 

 

 

Impacts

 

Variable Annuity

 

Impacts

 

Long Term Care

 

Discount Rate

 

Weather-Related

 

(in millions, unaudited)

 

to DAC/DSIC (5)

 

Product Changes (6)

 

to DAC/DSIC (5)

 

Reserves (7)

 

Change (8)

 

Losses (9)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

Total revenues

 

 

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

Operating total net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

(2

)

(3

)

 

32

 

(7

)

12

 

Amortization of deferred acquisition costs

 

(8

)

1

 

(1

)

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

General and administrative expense

 

 

 

 

 

 

 

Operating expenses

 

(10

)

(2

)

(1

)

32

 

(7

)

12

 

Pretax operating earnings

 

$

10

 

$

2

 

$

1

 

$

(32

)

$

7

 

$

(12

)

 


(1)

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

(2)

Variable annuity guaranteed benefit impacts include:

 

$39 million net expense related to hedged variable annuity benefits

 

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

(3)

Indexed universal life benefit impacts include:

 

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

 

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

 

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

(4)

Reflects revenues and expenses of Consolidated Investment Entities

(5)

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

(6)

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

(7)

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

(8)

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

(9)

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

 

40



 

Ameriprise Financial, Inc.

Disclosed Items

4 Qtr 2014

 

Excluded from Operating Earnings

 

 

 

Advice & Wealth 
Management

 

Annuities

 

Protection

 

Corporate and 
Eliminations

 

 

 

 

 

 

 

Market Impact on

 

 

 

Market Impact on

 

 

 

 

 

Securities

 

Securities

 

VA Guaranteed

 

Securities

 

Indexed Universal

 

 

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Gains/(Losses) (1)

 

Life Benefits (3)

 

CIEs (4)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

(16

)

Distribution fees

 

 

 

 

 

 

 

Net investment income

 

1

 

16

 

 

10

 

 

(1

)

Premiums

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

(11

)

125

 

Total revenues

 

1

 

16

 

 

10

 

(11

)

108

 

Banking and deposit interest expense

 

 

 

 

 

 

 

Total net revenues

 

1

 

16

 

 

10

 

(11

)

108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

12

 

 

Benefits, claims, losses and settlement expenses

 

 

 

40

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

(6

)

 

(8

)

 

Interest and debt expense

 

 

 

 

 

 

60

 

General and administrative expense

 

 

 

 

 

 

20

 

Total expenses

 

 

 

34

 

 

4

 

80

 

Pretax segment income (loss)

 

1

 

16

 

(34

)

10

 

(15

)

28

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

 

 

 

 

28

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

1

 

$

16

 

$

(34

)

$

10

 

$

(15

)

$

 

 

Included in Operating Earnings

 

 

 

Annuities

 

Protection

 

 

 

 

 

Market

 

 

 

Market

 

 

 

 

 

 

 

 

 

Impacts

 

Variable Annuity

 

Impacts

 

Actuarial Model

 

Auto & Home

 

 

 

(in millions, unaudited)

 

to DAC/DSIC (5)

 

Product Changes (6)

 

to DAC/DSIC (5)

 

Correction (7)

 

Reserves (8)

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

Total revenues

 

 

 

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

Operating total net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

(1

)

(2

)

 

 

60

 

 

 

Amortization of deferred acquisition costs

 

(6

)

 

(1

)

7

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

General and administrative expense

 

 

 

 

 

 

 

 

Operating expenses

 

(7

)

(2

)

(1

)

7

 

60

 

 

 

Pretax operating earnings

 

$

7

 

$

2

 

$

1

 

$

(7

)

$

(60

)

 

 

 


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

(2)        Variable annuity guaranteed benefit impacts include:

$42 million net expense related to hedged variable annuity benefits

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

(3)        Indexed universal life benefit impacts include:

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

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

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

(4)        Reflects revenues and expenses of Consolidated Investment Entities

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

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

(7)        Actuarial model correction in life and health

(8)        Increase in auto reserves

 

41



 

Ameriprise Financial, Inc.

Disclosed Items

3 Qtr 2014

 

Excluded from Operating Earnings

 

 

 

Annuities

 

Protection

 

Corporate and Eliminations

 

 

 

 

 

Market Impact on

 

 

 

Market Impact on

 

 

 

 

 

 

 

Securities

 

VA Guaranteed

 

Securities

 

Indexed Universal

 

Securities

 

 

 

(in millions, unaudited)

 

Gains/(Losses) (1)

 

Benefits (2)

 

Gains/(Losses) (1)

 

Life Benefits (3)

 

Gains/(Losses) (1)

 

CIEs (4)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

(15

)

Distribution fees

 

 

 

 

 

 

 

Net investment income

 

7

 

 

1

 

 

(4

)

41

 

Premiums

 

 

 

 

 

 

 

Other revenues

 

 

 

 

2

 

 

180

 

Total revenues

 

7

 

 

1

 

2

 

(4

)

206

 

Banking and deposit interest expense

 

 

 

 

 

 

 

Total net revenues

 

7

 

 

1

 

2

 

(4

)

206

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

(7

)

 

 

Benefits, claims, losses and settlement expenses

 

 

(16

)

 

 

 

 

Amortization of deferred acquisition costs

 

 

7

 

 

1

 

 

 

Interest and debt expense

 

 

 

 

 

 

54

 

General and administrative expense

 

 

 

 

 

 

7

 

Total expenses

 

 

(9

)

 

(6

)

 

61

 

Pretax segment income (loss)

 

7

 

9

 

1

 

8

 

(4

)

145

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

 

 

 

 

145

 

Pretax segment gain (loss) attributable to Ameriprise Financial

 

$

7

 

$

9

 

$

1

 

$

8

 

$

(4

)

$

 

 

Included in Operating Earnings

 

 

 

Annuities

 

Protection

 

 

 

 

 

 

 

 

 

Market

 

Valuation

 

Valuation

 

 

 

 

 

 

 

 

 

Impacts

 

Assumptions &

 

Assumptions &

 

 

 

 

 

 

 

(in millions, unaudited)

 

to DAC/DSIC (5)

 

Model Changes (6)

 

Model Changes (6)

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

 

 

 

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

(29

)

 

 

 

 

 

 

Total revenues

 

 

 

(29

)

 

 

 

 

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

Operating total net revenues

 

 

 

(29

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

1

 

5

 

1

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

5

 

17

 

(9

)

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

6

 

22

 

(8

)

 

 

 

 

 

 

Pretax operating earnings

 

$

(6

)

$

(22

)

$

(21

)

 

 

 

 

 

 

 


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

(2)        Variable annuity guaranteed benefit impacts include:

$17 million net benefit related to hedged variable annuity benefits

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

(3)        Indexed universal life benefit impacts include:

$7 million net benefit related to hedged indexed universal life benefits

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

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

(4)        Reflects revenues and expenses of Consolidated Investment Entities

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

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

 

42



 

Exhibit B

 

GRAPHIC

 

 

Statistical Supplement Package

(unaudited)

 

Third Quarter 2015

 

Non-GAAP Financial Measure Reconciliations

 

43



 

Ameriprise Financial, Inc.

Non-GAAP Financial Measure Reconciliations

Third Quarter 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-date

 

(in millions unless otherwise noted, unaudited)

 

3 Qtr 2014

 

4 Qtr 2014

 

1 Qtr 2015

 

2 Qtr 2015

 

3 Qtr 2015

 

2014

 

2015

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Ameriprise Financial (last twelve months)

 

$

1,490

 

$

1,619

 

$

1,612

 

$

1,653

 

$

1,630

 

$

1,490

 

$

1,630

 

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

 

(3

)

(2

)

(1

)

(1

)

(1

)

(3

)

(1

)

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

 

1,493

 

1,621

 

1,613

 

1,654

 

1,631

 

1,493

 

1,631

 

Less adjustments (1)

 

(107

)

(41

)

(54

)

(39

)

(84

)

(107

)

(84

)

Operating earnings (last twelve months)

 

$

1,600

 

$

1,662

 

$

1,667

 

$

1,693

 

$

1,715

 

$

1,600

 

$

1,715

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

8,310

 

$

8,270

 

$

8,270

 

$

8,176

 

$

8,017

 

$

8,310

 

$

8,017

 

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

 

723

 

734

 

755

 

706

 

615

 

723

 

615

 

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

 

7,587

 

7,536

 

7,515

 

7,470

 

7,402

 

7,587

 

7,402

 

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

 

331

 

311

 

300

 

280

 

250

 

331

 

250

 

Operating equity (five point quarter end average)

 

$

7,256

 

$

7,225

 

$

7,215

 

$

7,190

 

$

7,152

 

$

7,256

 

$

7,152

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity excluding AOCI

 

19.7

%

21.5

%

21.5

%

22.1

%

22.0

%

19.7

%

22.0

%

Operating return on equity excluding AOCI

 

22.1

%

23.0

%

23.1

%

23.5

%

24.0

%

22.1

%

24.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective Tax Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax provision

 

$

720

 

$

558

 

$

618

 

$

615

 

$

463

 

$

1,989

 

$

1,696

 

Less pretax income (loss) attributable to noncontrolling interests

 

145

 

28

 

86

 

61

 

(45

)

353

 

102

 

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

 

575

 

530

 

532

 

554

 

508

 

1,636

 

1,594

 

Less adjustments (2)

 

21

 

(22

)

(30

)

(28

)

(50

)

(41

)

(108

)

Pretax operating earnings

 

$

554

 

$

552

 

$

562

 

$

582

 

$

558

 

$

1,677

 

$

1,702

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision from continuing operations

 

$

155

 

$

104

 

$

139

 

$

139

 

$

111

 

$

441

 

$

389

 

Operating income tax provision

 

$

147

 

$

112

 

$

150

 

$

148

 

$

129

 

$

455

 

$

427

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

21.6

%

18.7

%

22.5

%

22.6

%

24.1

%

22.2

%

23.0

%

Effective tax rate excluding noncontrolling interests

 

27.0

%

19.7

%

26.1

%

25.1

%

21.9

%

26.9

%

24.4

%

Operating effective tax rate

 

26.5

%

20.3

%

26.7

%

25.4

%

23.1

%

27.1

%

25.1

%

 


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

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

 

44



 

Ameriprise Financial, Inc.

Non-GAAP Financial Measure Reconciliations

Third Quarter 2015

 

(in millions unless otherwise noted, unaudited)

 

September 30, 2014

 

December 31, 2014

 

March 31, 2015

 

June 30, 2015

 

September 30, 2015

 

Long-term Debt Summary

 

 

 

 

 

 

 

 

 

 

 

Senior notes

 

$

2,765

 

$

2,768

 

$

2,772

 

$

2,761

 

$

2,766

 

Junior subordinated notes

 

294

 

294

 

294

 

294

 

253

 

Total Ameriprise Financial long-term debt

 

3,059

 

3,062

 

3,066

 

3,055

 

3,019

 

Less fair value of hedges and unamortized discount

 

65

 

68

 

72

 

61

 

66

 

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

 

$

2,994

 

$

2,994

 

$

2,994

 

$

2,994

 

$

2,953

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Summary

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

$

9,340

 

$

9,305

 

$

9,259

 

$

8,996

 

$

8,821

 

Less noncontrolling interests

 

1,080

 

1,181

 

1,064

 

1,121

 

1,192

 

Total Ameriprise Financial shareholders’ equity

 

8,260

 

8,124

 

8,195

 

7,875

 

7,629

 

Less equity of consolidated investment entities

 

296

 

222

 

266

 

243

 

162

 

Total Ameriprise Financial shareholders’ equity excluding CIEs

 

$

7,964

 

$

7,902

 

$

7,929

 

$

7,632

 

$

7,467

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Summary

 

 

 

 

 

 

 

 

 

 

 

Total Ameriprise Financial long-term debt

 

$

3,059

 

$

3,062

 

$

3,066

 

$

3,055

 

$

3,019

 

Total Ameriprise Financial shareholders’ equity

 

8,260

 

8,124

 

8,195

 

7,875

 

7,629

 

Total Ameriprise Financial capital

 

11,319

 

11,186

 

11,261

 

10,930

 

10,648

 

Less equity of consolidated investment entities

 

296

 

222

 

266

 

243

 

162

 

Less fair value of hedges and unamortized discount

 

65

 

68

 

72

 

61

 

66

 

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

 

$

10,958

 

$

10,896

 

$

10,923

 

$

10,626

 

$

10,420

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

27.0

%

27.4

%

27.2

%

28.0

%

28.4

%

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

 

27.3

%

27.5

%

27.4

%

28.2

%

28.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial shareholders’ equity

 

$

8,260

 

$

8,124

 

$

8,195

 

$

7,875

 

$

7,629

 

AOCI

 

746

 

662

 

704

 

500

 

461

 

Appropriated retained earnings of CIEs

 

308

 

234

 

279

 

257

 

174

 

AOCI attributable to CIEs

 

(12

)

(12

)

(13

)

(14

)

(12

)

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial shareholders’ equity

 

$

8,260

 

$

8,124

 

$

8,195

 

$

7,875

 

$

7,629

 

Less AOCI

 

746

 

662

 

704

 

500

 

461

 

Ameriprise Financial shareholders’ equity excluding AOCI

 

$

7,514

 

$

7,462

 

$

7,491

 

$

7,375

 

$

7,168

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial shareholders’ equity

 

$

8,260

 

$

8,124

 

$

8,195

 

$

7,875

 

$

7,629

 

Less appropriated retained earnings of CIEs

 

308

 

234

 

279

 

257

 

174

 

Less AOCI

 

746

 

662

 

704

 

500

 

461

 

Ameriprise Financial shareholders’ equity excluding CIEs and AOCI

 

$

7,206

 

$

7,228

 

$

7,212

 

$

7,118

 

$

6,994

 

 

45