[January 28, 2015] |
|
Ameriprise Financial Reports Fourth Quarter and Full Year 2014 Results
Ameriprise Financial, Inc. (NYSE: AMP) today reported fourth quarter
2014 net income(1) of $426 million, or $2.23 per diluted
share. Operating earnings were $440 million, up 16 percent from a year
ago, with operating earnings per diluted share increasing 23 percent to
$2.30.
Operating net revenues increased 5 percent to $3.0 billion driven by
strong fee-based business growth from client net inflows and market
appreciation.
Operating expenses increased 5 percent to $2.4 billion reflecting higher
distribution expense and higher benefits to policyholders in the
insurance and annuities businesses. General and administrative expenses
decreased 2 percent compared to a year ago reflecting the company's
ongoing expense discipline.
On a full-year basis, the company generated strong operating results and
revenue growth. Compared to 2013, operating net revenues grew 7 percent
to $11.6 billion, operating earnings grew 14 percent to $1.7 billion,
and operating earnings per diluted share increased 21 percent to $8.52.
In the quarter, the company returned $444 million to shareholders
through share repurchases and dividends. For the full year, the company
returned $1.8 billion to shareholders.
"Ameriprise delivered another good quarter to complete a strong year,
led by our Advice and Wealth Management business," said Jim Cracchiolo,
chairman and chief executive officer. "We're bringing in significant
client net inflows, growing our assets under management and increasing
advisor productivity."
"Our operating return on equity for the year increased to 23.0 percent -
another record high. With our excellent financial foundation and ability
to generate significant free cash flow, Ameriprise continues to return a
differentiated level of capital to shareholders. 2014 marked the fourth
consecutive year when we've returned more than 100 percent of our
operating earnings to shareholders."
(1) Net income represents net income from continuing
operations attributable to Ameriprise Financial.
|
Ameriprise Financial, Inc.
|
Fourth Quarter and Full Year Summary
|
|
(in millions, except per share amounts, unaudited)
|
|
Quarter Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
2014
|
|
2013
|
|
% Better/ (Worse)
|
|
2014
|
|
2013
|
|
% Better/ (Worse)
|
Net income from continuing operations attributable to Ameriprise
Financial
|
|
$
|
426
|
|
$
|
298
|
|
43
|
%
|
|
$
|
1,621
|
|
$
|
1,337
|
|
21
|
%
|
Adjustments, net of tax (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(see reconciliation on p. 11)
|
|
|
14
|
|
|
80
|
|
|
|
|
41
|
|
|
123
|
|
|
Operating earnings (2)
|
|
$
|
440
|
|
$
|
378
|
|
16
|
%
|
|
$
|
1,662
|
|
$
|
1,460
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Diluted Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
2.23
|
|
$
|
1.47
|
|
52
|
%
|
|
$
|
8.31
|
|
$
|
6.46
|
|
29
|
%
|
Adjustments, net of tax (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(see reconciliation on p. 11)
|
|
|
0.07
|
|
|
0.40
|
|
|
|
|
0.21
|
|
|
0.59
|
|
|
Operating earnings (2)
|
|
$
|
2.30
|
|
$
|
1.87
|
|
23
|
%
|
|
$
|
8.52
|
|
$
|
7.05
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
187.9
|
|
|
198.3
|
|
|
|
|
191.6
|
|
|
203.2
|
|
|
Diluted
|
|
|
191.2
|
|
|
202.3
|
|
|
|
|
195.0
|
|
|
207.1
|
|
|
|
(1) After-tax is calculated using the statutory tax
rate of 35%.
|
|
(2) The company believes the presentation of operating
earnings best represents the economics of the business. Operating
earnings, after-tax, exclude the consolidation of certain
investment entities; net realized gains or losses; integration and
restructuring charges; the market impact on variable annuity
guaranteed benefits net of hedges and related deferred acquisition
costs (DAC) and deferred sales inducement costs (DSIC)
amortization; the market impact on indexed universal life
benefits, net of hedges and related DAC amortization, unearned
revenue amortization, and the reinsurance accrual; and income or
loss from discontinued operations.
|
|
Results in the quarter were strong and included a favorable $8 million
pretax market impact on DAC and DSIC compared to a $17 million pretax
benefit a year ago. Results also included a benefit from lower taxes
that was largely offset by an increase in Auto and Home reserves and an
actuarial model correction, both in the Protection segment. The net
effect of these items was an unfavorable impact of $6 million after-tax,
or $0.03 per diluted share.
In addition, the results in the year ago quarter included a favorable
$26 million pretax impact from variable annuity product changes.
Taxes
The fourth quarter 2014 operating effective tax rate was 20.3 percent
compared to 27.2 percent a year ago. The 2014 full year operating
effective tax rate was 25.4 percent. The lower tax rate reflects the
impact of an increase in the dividends received deduction and lower
state income taxes. These changes reduced taxes by approximately $32
million. The company estimates that its full year 2015 operating
effective tax rate will be in the 26 to 28 percent range.
Fourth Quarter 2014 Business Highlights
-
Total assets under management and administration grew 5 percent from a
year ago to $806 billion driven by Ameriprise advisor client net
inflows and market appreciation.
-
Advice & Wealth Management experienced continued strong growth in
client assets and flows with advisor client assets up 9 percent to
$444 billion and wrap assets increasing 14 percent to $175 billion.
Wrap net inflows in the quarter remained strong at $3.1 billion.
-
Advisor productivity continues to improve. On a trailing 12-month
basis, operating net revenue per advisor grew 13 percent to $496,000.
-
Experienced advisor recruiting was strong in the quarter, with 73
experienced advisors moving their practices to Ameriprise.
-
Asset Management segment AUM increased 1 percent to $506 billion
driven by market appreciation, partially offset by the cumulative
effect of net outflows in prior quarters and an unfavorable impact
from foreign exchange. For the quarter, net inflows were $5.7 billion
driven by reinvested dividends.
-
The company has 118 four- and five-star rated funds, with 51 funds
managed by Columbia Management and 67 managed by Threadneedle.
-
Chief Investment Officer magazine recognized Columbia
Management with an industry innovation award for the Columbia Adaptive
Risk Allocation Fund, which was developed by Jeffrey Knight, Global
Head of Investment Solutions and Asset Allocation, and his team.
-
In January 2015, Columbia Management and Threadneedle Investments
announced that the two firms will rebrand to Columbia Threadneedle
InvestmentsSM in the first half of 2015. The new global
brand will represent the combined capabilities, resources and reach of
Columbia and Threadneedle, offering clients access to the best of both
firms and positioning the asset management group for a greater share
of global growth.
-
Combined, Advice & Wealth Management and Asset Management generated 68
percent of company pretax operating earnings(1), up from 59
percent a year ago.
-
Variable annuity policyholder account balances grew 2 percent to $77
billion and included $1.2 billion in new sales - 28 percent of sales
in the quarter did not include living benefits.
-
RiverSource Annuities launched Income GuideSM , a new
income monitoring program for clients with a variable annuity without
a living benefit.
-
Variable Universal Life / Universal Life insurance account balances
increased 3 percent to $11 billion.
-
Excess capital was approximately $2.5 billion after repurchasing 2.7
million shares of common stock in the quarter for $335 million and
paying $109 million in quarterly dividends. The company also holds
$250 million of additional capital above required levels, primarily
for variable annuity products.
(1) Excludes Corporate & Other segment
|
Ameriprise Financial, Inc.
|
Advice & Wealth Management Segment Operating Results
|
|
(in millions, unaudited)
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
Year Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
Advice & Wealth Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
1,249
|
|
|
$
|
1,127
|
|
|
11
|
%
|
|
$
|
4,806
|
|
|
$
|
4,295
|
|
|
12
|
%
|
Expenses
|
|
|
1,037
|
|
|
|
967
|
|
|
(7
|
)
|
|
|
4,014
|
|
|
|
3,703
|
|
|
(8
|
)
|
Pretax operating earnings
|
|
$
|
212
|
|
|
$
|
160
|
|
|
33
|
|
|
$
|
792
|
|
|
$
|
592
|
|
|
34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax operating margin
|
|
|
17.0
|
%
|
|
|
14.2
|
%
|
|
|
|
|
|
16.5
|
%
|
|
|
13.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31,
|
|
% Better/ (Worse)
|
|
2014
|
|
2013
|
|
Retail client assets (billions)
|
|
$
|
444
|
|
$
|
409
|
|
9
|
%
|
Mutual fund wrap net flows (billions)
|
|
$
|
3.1
|
|
$
|
2.8
|
|
10
|
%
|
Operating net revenue per branded advisor (trailing 12 months -
thousands)
|
|
$
|
496
|
|
$
|
440
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
Advice & Wealth Management pretax operating earnings
increased 33 percent to $212 million reflecting strong revenue growth
and expense controls. Fourth quarter 2014 pretax operating margin
reached a record high of 17.0 percent compared to 14.2 percent a year
ago.
Operating net revenues grew 11 percent to $1.2 billion driven by asset
growth in fee-based accounts from client inflows and market appreciation.
Operating expenses increased 7 percent to $1 billion as business growth
resulted in higher distribution expenses. General and administrative
expenses were flat compared to a year ago as investments in the business
were offset by ongoing expense discipline.
Total retail client assets grew 9 percent to $444 billion driven by
client net inflows, new client acquisition and market appreciation. Wrap
net inflows remained strong at $3.1 billion with wrap balances
increasing 14 percent to $175 billion. The combination of asset growth
and client activity drove a 13 percent increase in operating net revenue
per advisor on a trailing 12-month basis.
|
Ameriprise Financial, Inc.
|
Asset Management Segment Operating Results
|
|
(in millions, unaudited)
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
Year Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
Asset Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
830
|
|
|
$
|
824
|
|
|
1
|
%
|
|
$
|
3,320
|
|
|
$
|
3,169
|
|
|
5
|
%
|
Expenses
|
|
|
632
|
|
|
|
637
|
|
|
1
|
|
|
|
2,532
|
|
|
|
2,478
|
|
|
(2
|
)
|
Pretax operating earnings
|
|
$
|
198
|
|
|
$
|
187
|
|
|
6
|
|
|
$
|
788
|
|
|
$
|
691
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net pretax operating margin
|
|
|
40.0
|
%
|
|
|
38.8
|
%
|
|
|
|
|
|
39.8
|
%
|
|
|
36.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31,
|
|
% Better/ (Worse)
|
|
2014
|
|
2013
|
|
Total segment AUM(1) (billions)
|
|
$
|
506
|
|
$
|
501
|
|
1
|
%
|
Columbia Management AUM
|
|
$
|
361
|
|
$
|
357
|
|
1
|
%
|
Threadneedle AUM
|
|
$
|
148
|
|
$
|
147
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Total segment net flows (billions)
|
|
$
|
5.7
|
|
$
|
5.5
|
|
3
|
%
|
Retail net flows
|
|
$
|
4.9
|
|
$
|
4.5
|
|
10
|
%
|
Institutional net flows
|
|
$
|
0.3
|
|
$
|
0.8
|
|
(68
|
)%
|
Alternative net flows
|
|
$
|
0.5
|
|
$
|
0.2
|
|
NM
|
|
|
(1) Subadvisory eliminations between Columbia
Management and Threadneedle are included in the company's Fourth
Quarter 2014 Statistical Supplement available at ir.ameriprise.com
|
|
NM Not Meaningful - variance of greater than 100%
|
|
Asset Management pretax operating earnings increased 6 percent to
$198 million driven by market appreciation and continued expense
management, partially offset by the cumulative impact of net outflows.
Fourth quarter adjusted net pretax operating margin remained strong at
40.0 percent compared to 38.8 percent a year ago.
Operating net revenues grew 1 percent to $830 million primarily driven
by asset growth from market appreciation, partially offset by the
cumulative impact of net outflows.
Operating expenses decreased 1 percent to $632 million reflecting lower
general and administrative expenses and flat distribution expenses.
AUM grew 1 percent to $506 billion as market appreciation more than
offset the cumulative impact of net outflows and the impact from foreign
exchange. For the quarter, net inflows were $5.7 billion reflecting
robust inflows from third party institutional mandates, the launch of a
CLO, and strong reinvested dividends. Third party institutional inflows
of $1.7 billion were primarily offset by former parent company related
outflows at both Columbia and Threadneedle. Retail flows continued to be
pressured from outflows in a large fund, former parent company
affiliated distribution, and certain subadvised funds.
|
Ameriprise Financial, Inc.
|
Annuities Segment Operating Results
|
|
(in millions, unaudited)
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
Year Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2014
|
|
2013
|
|
|
|
2014
|
|
2013
|
|
|
Annuities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
649
|
|
$
|
653
|
|
|
(1
|
)%
|
|
$
|
2,591
|
|
$
|
2,561
|
|
|
1
|
%
|
Expenses
|
|
|
490
|
|
|
481
|
|
|
(2
|
)
|
|
|
1,958
|
|
|
1,932
|
|
|
(1
|
)
|
Pretax operating earnings
|
|
$
|
159
|
|
$
|
172
|
|
|
(8
|
)
|
|
$
|
633
|
|
$
|
629
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable annuity pretax operating earnings
|
|
$
|
123
|
|
$
|
151
|
|
|
(19
|
)%
|
|
$
|
489
|
|
$
|
514
|
|
|
(5
|
)%
|
Fixed annuity pretax operating earnings
|
|
|
36
|
|
|
21
|
|
|
71
|
|
|
|
144
|
|
|
115
|
|
|
25
|
|
Total pretax operating earnings
|
|
$
|
159
|
|
$
|
172
|
|
|
(8
|
)
|
|
$
|
633
|
|
$
|
629
|
|
|
1
|
|
|
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
|
2014
|
|
|
2013
|
|
|
Items included in operating earnings:
|
|
|
|
|
|
|
|
|
|
|
|
Market impact on DAC and DSIC (mean reversion)
|
|
$
|
7
|
|
|
$
|
16
|
|
|
(56
|
)%
|
Impact of variable annuity product changes
|
|
|
2
|
|
|
|
26
|
|
|
(92
|
)%
|
Total annuities impact
|
|
$
|
9
|
|
|
$
|
42
|
|
|
(79
|
)%
|
|
Variable annuity ending account balances (billions)
|
|
$
|
77.0
|
|
|
$
|
75.5
|
|
|
2
|
%
|
Variable annuity net flows (millions)
|
|
$
|
(406
|
)
|
|
$
|
(275
|
)
|
|
(48
|
)%
|
Fixed annuity ending account balances (billions)
|
|
$
|
12.1
|
|
|
$
|
13.3
|
|
|
(8
|
)%
|
Fixed annuity net flows (millions)
|
|
$
|
(315
|
)
|
|
$
|
(292
|
)
|
|
(8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Annuities pretax operating earnings were $159 million compared to
$172 million a year ago, as the year ago period included $33 million of
higher benefits from the market impact on DAC and DSIC and a variable
annuity product change.
Variable annuity operating earnings were $123 million in the quarter
reflecting $33 million of lower benefits from a product change in the
year ago period and the market impact on DAC and DSIC, as well as the
negative impact of interest rates. Without these items, variable annuity
earnings increased 8 percent from growth in account balances. Account
balances grew 2 percent to $77 billion driven by market appreciation,
partially offset by net outflows. Variable annuity cash sales were $1.2
billion for the quarter and were $4.9 billion for the year.
Fixed annuity operating earnings increased to $36 million primarily
driven by higher spreads due to lower crediting rates, partially offset
by the cumulative decline in account balances. Fixed annuity account
balances decreased 8 percent given limited new sales from low rates and
lapse rates consistent with the company's expectations.
|
Ameriprise Financial, Inc.
|
Protection Segment Operating Results
|
|
(in millions, unaudited)
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
Year Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2014
|
|
2013
|
|
|
|
2014
|
|
2013
|
|
|
Protection
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
600
|
|
$
|
564
|
|
|
6
|
%
|
|
$
|
2,287
|
|
$
|
2,186
|
|
|
5
|
%
|
Expenses
|
|
|
570
|
|
|
490
|
|
|
(16
|
)
|
|
|
2,041
|
|
|
1,850
|
|
|
(10
|
)
|
Pretax operating earnings
|
|
$
|
30
|
|
$
|
74
|
|
|
(59
|
)
|
|
$
|
246
|
|
$
|
336
|
|
|
(27
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
|
2014
|
|
|
2013
|
|
|
Items included in operating earnings:
|
|
|
|
|
|
|
|
|
|
|
|
Market impact on DAC (mean reversion)
|
|
$
|
1
|
|
|
$
|
1
|
|
|
-
|
|
Actuarial model correction
|
|
|
(7
|
)
|
|
|
-
|
|
|
NM
|
|
Auto & Home reserves
|
|
|
(60
|
)
|
|
|
(20
|
)
|
|
NM
|
|
Total protection impact
|
|
$
|
(66
|
)
|
|
$
|
(19
|
)
|
|
NM
|
|
|
Life insurance in force (billions)
|
|
$
|
196
|
|
|
$
|
194
|
|
|
1
|
%
|
VUL/UL ending account balances (billions)
|
|
$
|
11.3
|
|
|
$
|
10.9
|
|
|
3
|
%
|
Auto & Home policies in force (thousands)
|
|
|
929
|
|
|
|
838
|
|
|
11
|
%
|
|
NM Not Meaningful - variance of greater than 100%
|
|
Protection pretax operating earnings were $30 million compared to
$74 million a year ago. Included in the current quarter's results were a
$60 million Auto and Home reserve increase and a $7 million actuarial
model correction in Life and Health. Without these items, operating
earnings would have been $97 million in the quarter.
Life and Health earnings, without the actuarial model correction, were
solid and reflect normal quarterly claims fluctuations. VUL/UL account
balances grew 3 percent primarily from market appreciation. VUL/UL cash
sales were $85 million, up 2 percent.
Reserves in Auto and Home increased primarily related to higher claims
frequency and severity levels in the auto product line. Improvements in
underwriting, operational and claims processes, and pricing actions were
taken in 2014 and will continue in 2015. The benefits of these actions
are anticipated to be realized over the next several years. Auto and
Home policy growth remains strong with home policies in force up 16
percent and auto policies up 7 percent.
|
|
|
Ameriprise Financial, Inc.
|
Corporate & Other Segment Operating Results
|
|
|
|
(in millions, unaudited)
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
Year Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
Corporate & Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
1
|
|
|
$
|
7
|
|
|
(86
|
)%
|
|
$
|
4
|
|
|
$
|
15
|
|
|
(73
|
)%
|
Expenses
|
|
|
48
|
|
|
|
81
|
|
|
41
|
|
|
|
234
|
|
|
|
244
|
|
|
4
|
|
Pretax operating loss
|
|
$
|
(47
|
)
|
|
$
|
(74
|
)
|
|
36
|
|
|
$
|
(230
|
)
|
|
$
|
(229
|
)
|
|
-
|
|
|
|
|
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
|
2014
|
|
2013
|
|
|
Items included in operating earnings:
|
|
|
|
|
|
|
|
|
|
|
Debt retirement expense
|
|
$
|
-
|
|
$
|
(19
|
)
|
|
NM
|
|
|
|
|
NM Not Meaningful - variance of greater than 100%
|
|
|
|
Corporate & Other pretax operating loss was $47 million for
the quarter compared to a $74 million loss a year ago. The year ago
quarter included a $19 million make whole expense associated with the
retirement of debt.
At Ameriprise Financial, we have been helping people feel confident
about their financial future for 120 years. With a nationwide network of
10,000 financial advisors and extensive asset management, advisory and
insurance capabilities, we have the strength and expertise to serve the
full range of individual and institutional investors' financial needs.
For more information, visit ameriprise.com.
Ameriprise Financial Services, Inc. offers financial planning services,
investments, insurance and annuity products. Columbia Funds are
distributed by Columbia Management Investment Distributors, Inc., member
FINRA and managed by Columbia Management Investment Advisers, LLC.
Threadneedle International Limited is an SEC- and FCA-registered
investment adviser affiliate of Columbia Management Investment Advisers,
LLC based in the U.K. Auto and home insurance is underwritten by IDS
Property Casualty Insurance Company, or in certain states, Ameriprise
Insurance Company, both in De Pere, WI. RiverSource insurance and
annuity products are issued by RiverSource Life Insurance Company, and
in New York only by RiverSource Life Insurance Co. of New York, Albany,
New York. Only RiverSource Life Insurance Co. of New York is authorized
to sell insurance and annuity products in the state of New York. These
companies are all part of Ameriprise Financial, Inc. CA License
#0684538. RiverSource Distributors, Inc. (Distributor), Member FINRA.
Forward-Looking Statements
This news release contains forward-looking statements that reflect
management's plans, estimates and beliefs. Actual results could differ
materially from those described in these forward-looking statements.
Examples of such forward-looking statements include:
-
the statement in this news release that the company expects its
full-year 2015 operating effective tax rate to be in the 26 to 28
percent range;
-
the statements in this news release concerning the anticipated timing
and effect of rebranding at Columbia and Threadneedle;
-
the statements in this news release concerning the expected impact,
and time during which impacts might be realized, as a result of
actions taken in the company's Auto and Home business;
-
statements of the company's plans, intentions, positioning,
expectations, objectives or goals, including those relating to asset
flows, mass affluent and affluent client acquisition strategy, client
retention and growth of our client base, financial advisor
productivity, retention, recruiting and enrollments, the introduction,
cessation, terms or pricing of new or existing products and services,
acquisition integration, general and administrative costs,
consolidated tax rate, return of capital to shareholders, and excess
capital position and financial flexibility to capture additional
growth opportunities;
-
other statements about future economic performance, the performance of
equity markets and interest rate variations and the economic
performance of the United States and of global markets; and
-
statements of assumptions underlying such statements.
The words "believe," "expect," "anticipate," "optimistic," "intend,"
"plan," "aim," "will," "may," "should," "could," "would," "likely,"
"forecast," "on pace," "project" and similar expressions are intended to
identify forward-looking statements but are not the exclusive means of
identifying such statements. Forward-looking statements are subject to
risks and uncertainties, which could cause actual results to differ
materially from such statements.
Such factors include, but are not limited to:
-
conditions in the interest rate, credit default, equity market and
foreign exchange environments, including changes in valuations,
liquidity and volatility;
-
changes in and the adoption of relevant accounting standards and
securities rating agency standards and processes, as well as changes
in the litigation and regulatory environment, including ongoing legal
proceedings and regulatory actions, the frequency and extent of legal
claims threatened or initiated by clients, other persons and
regulators, and developments in regulation and legislation, including
the rules and regulations implemented or to be implemented in
connection with the Dodd-Frank Wall Street Reform and Consumer
Protection Act;
-
investment management performance and distribution partner and
consumer acceptance of the company's products;
-
effects of competition in the financial services industry, including
pricing pressure, the introduction of new products and services and
changes in product distribution mix and distribution channels;
-
changes to the company's reputation that may arise from employee or
advisor misconduct, legal or regulatory actions, perceptions of the
financial services industry generally, improper management of
conflicts of interest or otherwise;
-
the company's capital structure, including indebtedness, limitations
on subsidiaries to pay dividends, and the extent, manner, terms and
timing of any share or debt repurchases management may effect as well
as the opinions of rating agencies and other analysts and the
reactions of market participants or the company's regulators,
advisors, distribution partners or customers in response to any change
or prospect of change in any such opinion;
-
changes to the availability and cost of liquidity and the Company's
credit capacity that may arise due to shifts in market conditions, the
Company's credit ratings and the overall availability of credit;
-
risks of default, capacity constraint or repricing by issuers or
guarantors of investments the company owns or by counterparties to
hedge, derivative, insurance or reinsurance arrangements or by
manufacturers of products the company distributes, experience
deviations from the company's assumptions regarding such risks, the
evaluations or the prospect of changes in evaluations of any such
third parties published by rating agencies or other analysts, and the
reactions of other market participants or the company's regulators,
advisors, distribution partners or customers in response to any such
evaluation or prospect of changes in evaluation;
-
experience deviations from the company's assumptions regarding
morbidity, mortality and persistency in certain annuity and insurance
products, or from assumptions regarding market returns assumed in
valuing or unlocking DAC and DSIC or market volatility underlying our
valuation and hedging of guaranteed living benefit annuity riders, or
from assumptions regarding interest rates assumed in our loss
recognition testing of our Long Term Care business, or from
assumptions regarding anticipated claims and losses relating to our
automobile and home insurance products;
-
changes in capital requirements that may be indicated, required or
advised by regulators or rating agencies;
-
the impacts of the company's efforts to improve distribution economics
and to grow third-party distribution of its products;
-
the ability to pursue and complete strategic transactions and
initiatives, including acquisitions, divestitures, restructurings,
joint ventures and the development of new products and services;
-
the ability to realize the financial, operating and business
fundamental benefits of strategic transactions and initiatives the
company has completed, is pursuing or may pursue in the future, which
may be impacted by the ability to obtain regulatory approvals, the
ability to effectively manage related expenses and by market, business
partner and consumer reactions to such strategic transactions and
initiatives;
-
the ability and timing to realize savings and other benefits from
re-engineering and tax planning;
-
interruptions or other failures in our communications, technology and
other operating systems, including errors or failures caused by third
party service providers, interference or failures caused by third
party attacks on our systems, or the failure to safeguard the privacy
or confidentiality of sensitive information and data on such systems;
and
-
general economic and political factors, including consumer confidence
in the economy and the financial industry, the ability and inclination
of consumers generally to invest as well as their ability and
inclination to invest in financial instruments and products other than
cash and cash equivalents, the costs of products and services the
company consumes in the conduct of its business, and applicable
legislation and regulation and changes therein, including tax laws,
tax treaties, fiscal and central government treasury policy, and
policies regarding the financial services industry and publicly held
firms, and regulatory rulings and pronouncements.
Management cautions the reader that the foregoing list of factors is not
exhaustive. There may also be other risks that management is unable to
predict at this time that may cause actual results to differ materially
from those in forward-looking statements. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak
only as of the date on which they are made. Management undertakes no
obligation to update publicly or revise any forward-looking statements.
The foregoing list of factors should be read in conjunction with the
"Risk Factors" discussion under Part 1, Item 1A of and elsewhere in our
Annual Report on Form 10-K for the year ended December 31, 2013
available at ir.ameriprise.com.
The financial results discussed in this news release represent past
performance only, which may not be used to predict or project future
results. The financial results and values presented in this news release
and the below-referenced Statistical Supplement are based upon asset
valuations that represent estimates as of the date of this news release
and may be revised in the company's Annual Report on Form 10-K for the
year ended December 31, 2014. For information about Ameriprise Financial
entities, please refer to the Fourth Quarter 2014 Statistical Supplement
available at ir.ameriprise.com
and the tables that follow in this news release.
Ameriprise Financial announces financial and other information to
investors through the company's investor relations website at ir.ameriprise.com,
as well as SEC filings, press releases, public conference calls and
webcasts. Investors and others interested in the company are encouraged
to visit the investor relations website from time to time, as
information is updated and new information is posted. The website also
allows users to sign up for automatic notifications in the event new
materials are posted. The information found on the website is not
incorporated by reference into this release or in any other report or
document the company furnishes or files with the SEC.
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Earnings
|
|
|
|
Quarter Ended
December 31,
|
|
|
Per Diluted Share
Quarter Ended
December 31,
|
|
(in millions, except per share amounts, unaudited)
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Net income attributable to Ameriprise Financial
|
|
$
|
425
|
|
|
$
|
296
|
|
|
$
|
2.22
|
|
|
$
|
1.46
|
|
Less: Loss from discontinued operations, net of tax
|
|
|
(1
|
)
|
|
|
(2
|
)
|
|
|
(0.01
|
)
|
|
|
(0.01
|
)
|
Net income from continuing operations attributable to Ameriprise
Financial
|
|
|
426
|
|
|
|
298
|
|
|
|
2.23
|
|
|
|
1.47
|
|
Add: Market impact on variable annuity guaranteed benefits, net of
tax(1)
|
|
|
21
|
|
|
|
68
|
|
|
|
0.11
|
|
|
|
0.34
|
|
Add: Market impact on indexed universal life benefits, net of tax(1)
|
|
|
10
|
|
|
|
5
|
|
|
|
0.05
|
|
|
|
0.03
|
|
Add: Integration/restructuring charges, net of tax(1)
|
|
|
-
|
|
|
|
7
|
|
|
|
-
|
|
|
|
0.03
|
|
Add: Net realized (gains) losses, net of tax(1)
|
|
|
(17
|
)
|
|
|
-
|
|
|
|
(0.09
|
)
|
|
|
-
|
|
Operating earnings
|
|
$
|
440
|
|
|
$
|
378
|
|
|
$
|
2.30
|
|
|
$
|
1.87
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
187.9
|
|
|
|
198.3
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
191.2
|
|
|
|
202.3
|
|
|
|
|
|
|
|
|
|
|
(1) Calculated using the statutory tax rate of 35%.
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Earnings
|
|
|
|
Year Ended
December 31,
|
|
|
Per Diluted Share
Year Ended
December 31,
|
|
(in millions, except per share amounts, unaudited)
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Net income attributable to Ameriprise Financial
|
|
$
|
1,619
|
|
|
$
|
1,334
|
|
|
$
|
8.30
|
|
|
$
|
6.44
|
|
Less: Loss from discontinued operations, net of tax
|
|
|
(2
|
)
|
|
|
(3
|
)
|
|
|
(0.01
|
)
|
|
|
(0.02
|
)
|
Net income from continuing operations attributable to Ameriprise
Financial
|
|
|
1,621
|
|
|
|
1,337
|
|
|
|
8.31
|
|
|
|
6.46
|
|
Add: Market impact on variable annuity guaranteed benefits, net of
tax(1)
|
|
|
61
|
|
|
|
111
|
|
|
|
0.31
|
|
|
|
0.53
|
|
Add: Market impact on indexed universal life benefits, net of tax(1)
|
|
|
4
|
|
|
|
8
|
|
|
|
0.02
|
|
|
|
0.04
|
|
Add: Integration/restructuring charges, net of tax(1)
|
|
|
-
|
|
|
|
9
|
|
|
|
-
|
|
|
|
0.04
|
|
Add: Net realized (gains) losses, net of tax(1)
|
|
|
(24
|
)
|
|
|
(5
|
)
|
|
|
(0.12
|
)
|
|
|
(0.02
|
)
|
Operating earnings
|
|
$
|
1,662
|
|
|
$
|
1,460
|
|
|
$
|
8.52
|
|
|
$
|
7.05
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
191.6
|
|
|
|
203.2
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
195.0
|
|
|
|
207.1
|
|
|
|
|
|
|
|
|
|
|
(1) Calculated using the statutory tax rate of 35%.
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Total Net Revenues
|
|
|
|
Quarter Ended December 31,
|
|
|
Year Ended December 31,
|
|
(in millions, unaudited)
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Total net revenues
|
|
$
|
3,089
|
|
|
$
|
2,946
|
|
|
$
|
12,268
|
|
|
$
|
11,199
|
|
Less: CIEs revenue
|
|
|
108
|
|
|
|
137
|
|
|
|
651
|
|
|
|
345
|
|
Less: Net realized gains (losses)
|
|
|
27
|
|
|
|
-
|
|
|
|
37
|
|
|
|
7
|
|
Less: Market impact on indexed universal life benefits
|
|
|
(11
|
)
|
|
|
(7
|
)
|
|
|
(11
|
)
|
|
|
(10
|
)
|
Operating total net revenues
|
|
$
|
2,965
|
|
|
$
|
2,816
|
|
|
$
|
11,591
|
|
|
$
|
10,857
|
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Total Expenses
|
|
|
|
Quarter Ended December 31,
|
|
|
Year Ended December 31,
|
|
(in millions, unaudited)
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Total expenses
|
|
$
|
2,531
|
|
|
$
|
2,467
|
|
|
$
|
9,721
|
|
|
$
|
9,229
|
|
Less: CIEs expenses
|
|
|
80
|
|
|
|
53
|
|
|
|
270
|
|
|
|
204
|
|
Less: Market impact on variable annuity guaranteed benefits
|
|
|
34
|
|
|
|
104
|
|
|
|
94
|
|
|
|
170
|
|
Less: Market impact on indexed universal life benefits
|
|
|
4
|
|
|
|
2
|
|
|
|
(5
|
)
|
|
|
3
|
|
Less: Integration/restructuring charges
|
|
|
-
|
|
|
|
11
|
|
|
|
-
|
|
|
|
14
|
|
Operating expenses
|
|
$
|
2,413
|
|
|
$
|
2,297
|
|
|
$
|
9,362
|
|
|
$
|
8,838
|
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Pretax Operating Earnings
|
|
|
|
Quarter Ended December 31,
|
|
|
Year Ended December 31,
|
|
(in millions, unaudited)
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Operating total net revenues
|
|
$
|
2,965
|
|
|
$
|
2,816
|
|
|
$
|
11,591
|
|
|
$
|
10,857
|
|
Operating expenses
|
|
|
2,413
|
|
|
|
2,297
|
|
|
|
9,362
|
|
|
|
8,838
|
|
Pretax operating earnings
|
|
$
|
552
|
|
|
$
|
519
|
|
|
$
|
2,229
|
|
|
$
|
2,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: General and Administrative Expense
|
|
|
|
Quarter Ended December 31,
|
(in millions, unaudited)
|
|
2014
|
|
|
2013
|
General and administrative expense
|
|
$
|
775
|
|
|
$
|
793
|
Less: CIEs expenses
|
|
|
20
|
|
|
|
15
|
Less: Integration/restructuring charges
|
|
|
-
|
|
|
|
11
|
Operating general and administrative expense
|
|
$
|
755
|
|
|
$
|
767
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Variable Annuity Pretax Operating Earnings
|
|
|
|
Quarter Ended December 31,
|
(in millions, unaudited)
|
|
2014
|
|
|
2013
|
Pretax operating earnings
|
|
$
|
123
|
|
|
$
|
151
|
Less: Market impact on DAC and DSIC (mean reversion)
|
|
|
7
|
|
|
|
16
|
Less: Impact of variable annuity product changes
|
|
|
2
|
|
|
|
26
|
Less: Impact of interest rates
|
|
|
(4
|
)
|
|
|
-
|
Pretax operating earnings excluding impact of mean reversion,
variable annuity product changes, and interest rates
|
|
$
|
118
|
|
|
$
|
109
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Effective Tax Rate
|
|
|
|
Quarter Ended December 31, 2014
|
|
(in millions, unaudited)
|
|
GAAP
|
|
|
Operating
|
|
Income from continuing operations before income tax provision
|
|
$
|
558
|
|
|
$
|
552
|
|
Less: Pretax income attributable to noncontrolling interests
|
|
|
28
|
|
|
|
-
|
|
Income from continuing operations before income tax provision
excluding consolidated investment entities
|
|
$
|
530
|
|
|
$
|
552
|
|
Income tax provision from continuing operations
|
|
$
|
104
|
|
|
$
|
112
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
18.7
|
%
|
|
|
20.3
|
%
|
Effective tax rate excluding noncontrolling interests
|
|
|
19.7
|
%
|
|
|
20.3
|
%
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Effective Tax Rate
|
|
|
|
Quarter Ended December 31, 2013
|
|
(in millions, unaudited)
|
|
GAAP
|
|
|
Operating
|
|
Income from continuing operations before income tax provision
|
|
$
|
479
|
|
|
$
|
519
|
|
Less: Pretax income attributable to noncontrolling interests
|
|
|
84
|
|
|
|
-
|
|
Income from continuing operations before income tax provision
excluding consolidated investment entities
|
|
$
|
395
|
|
|
$
|
519
|
|
Income tax provision from continuing operations
|
|
$
|
97
|
|
|
$
|
141
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
20.5
|
%
|
|
|
27.2
|
%
|
Effective tax rate excluding noncontrolling interests
|
|
|
24.8
|
%
|
|
|
27.2
|
%
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Effective Tax Rate
|
|
|
|
Year Ended December 31, 2014
|
|
(in millions, unaudited)
|
|
GAAP
|
|
|
Operating
|
|
Income from continuing operations before income tax provision
|
|
$
|
2,547
|
|
|
$
|
2,229
|
|
Less: Pretax income attributable to noncontrolling interests
|
|
|
381
|
|
|
|
-
|
|
Income from continuing operations before income tax provision
excluding consolidated investment entities
|
|
$
|
2,166
|
|
|
$
|
2,229
|
|
Income tax provision from continuing operations
|
|
$
|
545
|
|
|
$
|
567
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
21.4
|
%
|
|
|
25.4
|
%
|
Effective tax rate excluding noncontrolling interests
|
|
|
25.2
|
%
|
|
|
25.4
|
%
|
|
|
|
|
|
|
|
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Asset Management Adjusted Net Pretax
Operating Margin
|
|
|
Quarter Ended December 31,
|
|
(in millions, unaudited)
|
|
2014
|
|
|
2013
|
|
Operating total net revenues
|
|
$
|
830
|
|
|
$
|
824
|
|
Less: Distribution pass through revenues
|
|
|
231
|
|
|
|
229
|
|
Less: Subadvisory and other pass through revenues
|
|
|
99
|
|
|
|
100
|
|
Adjusted operating revenues
|
|
$
|
500
|
|
|
$
|
495
|
|
|
|
|
|
|
|
|
|
|
Pretax operating earnings
|
|
$
|
198
|
|
|
$
|
187
|
|
Less: Operating net investment income
|
|
|
6
|
|
|
|
4
|
|
Add: Amortization of intangibles
|
|
|
8
|
|
|
|
9
|
|
Adjusted operating earnings
|
|
$
|
200
|
|
|
$
|
192
|
|
|
|
|
|
|
|
|
|
|
Adjusted net pretax operating margin
|
|
|
40.0
|
%
|
|
|
38.8
|
%
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Asset Management Adjusted Net Pretax
Operating Margin
|
|
|
|
Year Ended December 31,
|
|
(in millions, unaudited)
|
|
2014
|
|
|
2013
|
|
Operating total net revenues
|
|
$
|
3,320
|
|
|
$
|
3,169
|
|
Less: Distribution pass through revenues
|
|
|
929
|
|
|
|
892
|
|
Less: Subadvisory and other pass through revenues
|
|
|
400
|
|
|
|
430
|
|
Adjusted operating revenues
|
|
$
|
1,991
|
|
|
$
|
1,847
|
|
|
|
|
|
|
|
|
|
|
Pretax operating earnings
|
|
$
|
788
|
|
|
$
|
691
|
|
Less: Operating net investment income
|
|
|
30
|
|
|
|
54
|
|
Add: Amortization of intangibles
|
|
|
34
|
|
|
|
38
|
|
Adjusted operating earnings
|
|
$
|
792
|
|
|
$
|
675
|
|
|
|
|
|
|
|
|
|
|
Adjusted net pretax operating margin
|
|
|
39.8
|
%
|
|
|
36.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Return on Equity (ROE) Excluding Accumulated
|
Other Comprehensive Income "AOCI"
|
|
|
|
Twelve Months Ended December 31,
|
|
(in millions, unaudited)
|
|
2014
|
|
|
2013
|
|
Net income attributable to Ameriprise Financial
|
|
$
|
1,619
|
|
|
$
|
1,334
|
|
Less: Loss from discontinued operations, net of tax
|
|
|
(2
|
)
|
|
|
(3
|
)
|
Net income from continuing operations attributable to Ameriprise
Financial, as reported
|
|
|
1,621
|
|
|
|
1,337
|
|
Less: Adjustments (1)
|
|
|
(41
|
)
|
|
|
(123
|
)
|
Operating earnings
|
|
$
|
1,662
|
|
|
$
|
1,460
|
|
|
|
|
|
|
|
|
|
|
Total Ameriprise Financial, Inc. shareholders' equity
|
|
$
|
8,270
|
|
|
$
|
8,582
|
|
Less: Accumulated other comprehensive income, net of tax
|
|
|
734
|
|
|
|
821
|
|
Total Ameriprise Financial, Inc. shareholders' equity excluding AOCI
|
|
|
7,536
|
|
|
|
7,761
|
|
Less: Equity impacts attributable to the consolidated investment
entities
|
|
|
311
|
|
|
|
333
|
|
Operating equity
|
|
$
|
7,225
|
|
|
$
|
7,428
|
|
|
|
|
|
|
|
|
|
|
Return on equity excluding AOCI
|
|
|
21.5
|
%
|
|
|
17.2
|
%
|
Operating return on equity excluding AOCI (2)
|
|
|
23.0
|
%
|
|
|
19.7
|
%
|
|
(1) Adjustments reflect the trailing twelve months' sum
of after-tax net realized gains/losses; market impact on variable
annuity guaranteed benefits, net of hedges and related DSIC and
DAC amortization; the market impact on indexed universal life
benefits, net of hedges and related DAC amortization, unearned
revenue amortization, and the reinsurance accrual; and
integration/restructuring charges. After-tax is calculated using
the statutory tax rate of 35%.
|
|
(2) Operating return on equity excluding accumulated
other comprehensive income (AOCI) is calculated using the trailing
twelve months of earnings excluding the after-tax net realized
gains/losses; market impact on variable annuity guaranteed
benefits, net of hedges and related DSIC and DAC amortization; the
market impact on indexed universal life benefits, net of hedges
and related DAC amortization, unearned revenue amortization, and
the reinsurance accrual; integration/ restructuring charges; and
discontinued operations in the numerator, and Ameriprise Financial
shareholders' equity excluding AOCI and the impact of
consolidating investment entities using a five-point average of
quarter-end equity in the denominator. After-tax is calculated
using the statutory tax rate of 35%.
|
|
|
Ameriprise Financial, Inc.
|
Consolidated GAAP Results
|
|
(in millions, unaudited)
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2014
|
|
|
2013
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Management and financial advice fees
|
|
$
|
1,489
|
|
|
$
|
1,397
|
|
|
7
|
%
|
Distribution fees
|
|
|
484
|
|
|
|
448
|
|
|
8
|
|
Net investment income
|
|
|
409
|
|
|
|
458
|
|
|
(11
|
)
|
Premiums
|
|
|
359
|
|
|
|
333
|
|
|
8
|
|
Other revenues
|
|
|
355
|
|
|
|
317
|
|
|
12
|
|
Total revenues
|
|
|
3,096
|
|
|
|
2,953
|
|
|
5
|
|
Banking and deposit interest expense
|
|
|
7
|
|
|
|
7
|
|
|
-
|
|
Total net revenues
|
|
|
3,089
|
|
|
|
2,946
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Distribution expenses
|
|
|
827
|
|
|
|
764
|
|
|
(8
|
)
|
Interest credited to fixed accounts
|
|
|
184
|
|
|
|
206
|
|
|
11
|
|
Benefits, claims, losses and settlement expenses
|
|
|
568
|
|
|
|
563
|
|
|
(1
|
)
|
Amortization of deferred acquisition costs
|
|
|
86
|
|
|
|
54
|
|
|
(59
|
)
|
Interest and debt expense
|
|
|
91
|
|
|
|
87
|
|
|
(5
|
)
|
General and administrative expense
|
|
|
775
|
|
|
|
793
|
|
|
2
|
|
Total expenses
|
|
|
2,531
|
|
|
|
2,467
|
|
|
(3
|
)
|
Income from continuing operations before income tax provision
|
|
|
558
|
|
|
|
479
|
|
|
16
|
|
Income tax provision
|
|
|
104
|
|
|
|
97
|
|
|
(7
|
)
|
Income from continuing operations
|
|
|
454
|
|
|
|
382
|
|
|
19
|
|
Loss from discontinued operations, net of tax
|
|
|
(1
|
)
|
|
|
(2
|
)
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
453
|
|
|
|
380
|
|
|
19
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
28
|
|
|
|
84
|
|
|
(67
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Ameriprise Financial
|
|
$
|
425
|
|
|
$
|
296
|
|
|
44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ameriprise Financial, Inc.
|
Consolidated GAAP Results
|
|
(in millions, unaudited)
|
|
Year Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2014
|
|
|
2013
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Management and financial advice fees
|
|
$
|
5,810
|
|
|
$
|
5,253
|
|
|
11
|
%
|
Distribution fees
|
|
|
1,894
|
|
|
|
1,771
|
|
|
7
|
|
Net investment income
|
|
|
1,741
|
|
|
|
1,889
|
|
|
(8
|
)
|
Premiums
|
|
|
1,385
|
|
|
|
1,282
|
|
|
8
|
|
Other revenues
|
|
|
1,466
|
|
|
|
1,035
|
|
|
42
|
|
Total revenues
|
|
|
12,296
|
|
|
|
11,230
|
|
|
9
|
|
Banking and deposit interest expense
|
|
|
28
|
|
|
|
31
|
|
|
10
|
|
Total net revenues
|
|
|
12,268
|
|
|
|
11,199
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Distribution expenses
|
|
|
3,236
|
|
|
|
2,925
|
|
|
(11
|
)
|
Interest credited to fixed accounts
|
|
|
713
|
|
|
|
806
|
|
|
12
|
|
Benefits, claims, losses and settlement expenses
|
|
|
1,982
|
|
|
|
1,954
|
|
|
(1
|
)
|
Amortization of deferred acquisition costs
|
|
|
367
|
|
|
|
207
|
|
|
(77
|
)
|
Interest and debt expense
|
|
|
328
|
|
|
|
281
|
|
|
(17
|
)
|
General and administrative expense
|
|
|
3,095
|
|
|
|
3,056
|
|
|
(1
|
)
|
Total expenses
|
|
|
9,721
|
|
|
|
9,229
|
|
|
(5
|
)
|
Income from continuing operations before income tax provision
|
|
|
2,547
|
|
|
|
1,970
|
|
|
29
|
|
Income tax provision
|
|
|
545
|
|
|
|
492
|
|
|
(11
|
)
|
Income from continuing operations
|
|
|
2,002
|
|
|
|
1,478
|
|
|
35
|
|
Loss from discontinued operations, net of tax
|
|
|
(2
|
)
|
|
|
(3
|
)
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
2,000
|
|
|
|
1,475
|
|
|
36
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
381
|
|
|
|
141
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Ameriprise Financial
|
|
$
|
1,619
|
|
|
$
|
1,334
|
|
|
21
|
|
|
NM Not Meaningful - variance of greater than 100%
|
|
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