[February 04, 2014] |
|
Ameriprise Financial Reports Fourth Quarter and Full Year 2013 Results
MINNEAPOLIS --(Business Wire)--
Ameriprise Financial, Inc. (NYSE: AMP) today reported fourth quarter
2013 net income(1) of $298 million, or $1.47 per diluted
share. Operating earnings were $378 million, up 3 percent from a year
ago, with operating earnings per diluted share up 9 percent to $1.87.
Operating net revenues increased 8 percent to $2.8 billion, driven by
strong fee-based business growth from client net inflows and increased
client activity, as well as market appreciation, which more than offset
the pressure from continued low interest rates. Excluding the impact of
continued low interest rates, operating net revenues grew 10 percent
compared to a year ago.
Operating expenses increased 7 percent to $2.3 billion reflecting
increased volume-related distribution expense, as well as higher expense
associated with the early retirement of debt. General and administrative
expenses increased 1 percent compared to a year ago reflecting the
company's ongoing expense discipline.
On a full-year basis, the company generated strong operating earnings
and revenue growth, driven by solid business fundamentals, including
record wrap net inflows, increased client activity, as well as strong
equity markets. Compared to 2012, operating net revenues grew 7 percent
to $10.9 billion, operating earnings grew 17 percent to $1.5 billion,
and operating earnings per diluted share increased 26 percent to $7.05.
At year end, total assets under management and administration were a
record $771 billion.
In the quarter, segment pretax operating earnings from Advice & Wealth
Management and Asset Management were $356 million, up 37 percent from
the year-ago period. For the full year, operating earnings from these
businesses were $1.3 billion, up 31 percent from the prior year. In the
quarter, these two businesses represented 57 percent of segment pretax
operating earnings(2).
In the quarter, the company returned $475 million to shareholders
through share repurchases and dividends. For the full year, $1.9 billion
was returned to shareholders.
"We had a very good quarter, and a terrific year," said Jim Cracchiolo,
chairman and chief executive officer. "Our advisory and asset management
businesses are leading our growth. Overall, assets are up significantly
across the firm and we have particular strength in our Advice & Wealth
Management business, with robust client net inflows and good growth in
advisor productivity."
"With the strong performance of the business and our high-quality
balance sheet, we returned 130 percent of our 2013 operating earnings to
shareholders and delivered record operating return on equity of 19.7
percent."
(1) Net income represents net income from continuing
operations attributable to Ameriprise Financial. (2)
Excludes Corporate & Other segment.
|
Ameriprise Financial, Inc.
|
Fourth Quarter and Full Year Summary
|
|
(in millions, except per share amounts, unaudited)
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
Year Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2013
|
|
|
2012
|
|
|
|
2013
|
|
|
2012
|
|
|
Net income from continuing operations attributable to Ameriprise
Financial
|
|
$
|
298
|
|
|
$
|
388
|
|
|
(23
|
)%
|
|
$
|
1,337
|
|
|
$
|
1,031
|
|
|
30
|
%
|
Adjustments, net of tax (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(see reconciliation on p. 11)
|
|
|
80
|
|
|
|
(21
|
)
|
|
|
|
|
123
|
|
|
|
214
|
|
|
|
Operating earnings
|
|
$
|
378
|
|
|
$
|
367
|
|
|
3
|
%
|
|
$
|
1,460
|
|
|
$
|
1,245
|
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Diluted Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
1.47
|
|
|
$
|
1.80
|
|
|
(18
|
)%
|
|
$
|
6.46
|
|
|
$
|
4.63
|
|
|
40
|
%
|
Adjustments, net of tax (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(see reconciliation on p. 11)
|
|
|
0.40
|
|
|
|
(0.09
|
)
|
|
|
|
|
0.59
|
|
|
|
0.96
|
|
|
|
Operating earnings
|
|
$
|
1.87
|
|
|
$
|
1.71
|
|
|
9
|
%
|
|
$
|
7.05
|
|
|
$
|
5.59
|
|
|
26
|
%
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
198.3
|
|
|
|
210.8
|
|
|
|
|
|
203.2
|
|
|
|
218.7
|
|
|
|
Diluted
|
|
|
202.3
|
|
|
|
215.1
|
|
|
|
|
|
207.1
|
|
|
|
222.8
|
|
|
|
|
(1) After-tax is calculated using the statutory tax
rate of 35%.
|
|
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.
Overall, results in the quarter were strong and included $11 million, or
$0.05 per diluted share, of favorable impacts from the market impact on
DAC and DSIC and a $12 million, or $0.06 per diluted share, expense
associated with the early retirement of debt. In addition, other items
are discussed in more detail in the segment commentary, including a
favorable item in variable annuities that was largely offset by reserve
strengthening for auto and home.
Taxes
The fourth quarter 2013 operating effective tax rate was 27.2 percent
compared to 17.2 percent a year ago. The year ago quarter included a $16
million benefit from prior period adjustments. For 2013, the full year
operating effective tax rate was 27.7 percent. The company estimates
that its full year 2014 operating effective tax rate will be in the 28
to 30 percent range.
Fourth Quarter 2013 Business Highlights
-
Total assets under management and administration grew 13 percent from
a year ago to $771 billion driven by Ameriprise advisor client net
inflows and market appreciation.
-
Ameriprise advisor client assets grew 16 percent to a record $409
billion and total wrap assets increased 23 percent to $154 billion.
Wrap net inflows in the quarter remained strong at $2.8 billion.
-
Advisor productivity continues to improve; operating net revenue per
advisor, excluding results from former banking operations, grew 14
percent to $116,000 for the quarter.
-
Experienced advisor recruiting remained strong, with 80 experienced
advisors moving their practices to Ameriprise during the quarter and
the recruiting pipeline remains solid.
-
Asset Management segment AUM increased 10 percent to $501 billion,
including $5.5 billion of net inflows in the quarter.
-
At year-end, the number of four- and five-star funds from Columbia
Management increased to 54, while Threadneedle had 63 four- and
five-star funds.
-
The introduction of additional fund options for variable annuity
policyholders was well received, resulting in strong client asset
transfers into the managed volatility Portfolio Stabilizer series of
funds.
-
Excess capital was nearly $2 billion after repurchasing 3.5 million
shares of common stock in the quarter for $371 million and paying $104
million in quarterly dividends. The company also holds $500 million of
additional capital above required levels for variable annuity products.
-
The company redeemed $350 million face amount of senior notes due in
2015.
-
In Forrester Research's 2014 Customer Experience Index Report,
Ameriprise ranked as #1 for customer experience in the Investment firm
category.
-
For the second consecutive year, Ameriprise Financial was recognized
as one of America's most civic-minded companies through the Civic 50
award.
Segment Summaries
|
Ameriprise Financial, Inc.
|
Advice & Wealth Management Segment Operating Results
|
|
(in millions, unaudited)
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
Year Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2013
|
|
|
2012
|
|
|
|
2013
|
|
|
2012
|
|
|
Advice & Wealth Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
1,127
|
|
|
$
|
1,005
|
|
|
12
|
%
|
|
$
|
4,295
|
|
|
$
|
3,873
|
|
|
11
|
%
|
Expenses
|
|
|
965
|
|
|
|
886
|
|
|
(9
|
)
|
|
|
3,697
|
|
|
|
3,430
|
|
|
(8
|
)
|
Pretax operating earnings
|
|
$
|
162
|
|
|
$
|
119
|
|
|
36
|
|
|
$
|
598
|
|
|
$
|
443
|
|
|
35
|
|
Pretax operating margin
|
|
|
14.4
|
%
|
|
|
11.8
|
%
|
|
|
|
|
13.9
|
%
|
|
|
11.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating results from former banking operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
-
|
|
|
$
|
12
|
|
|
NM
|
|
|
$
|
-
|
|
|
$
|
111
|
|
|
NM
|
|
General and administrative expense
|
|
|
-
|
|
|
|
12
|
|
|
NM
|
|
|
|
-
|
|
|
|
62
|
|
|
NM
|
|
Pretax operating earnings
|
|
$
|
-
|
|
|
$
|
-
|
|
|
NM
|
|
|
$
|
-
|
|
|
$
|
49
|
|
|
NM
|
|
|
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2013
|
|
|
2012
|
|
|
Retail client assets (billions)
|
|
$
|
409
|
|
|
$
|
353
|
|
|
16
|
%
|
Mutual fund wrap net flows (billions)
|
|
$
|
2.8
|
|
|
$
|
2.1
|
|
|
38
|
%
|
Operating net revenue per branded advisor, excluding former banking
operations (thousands)
|
|
$
|
116
|
|
|
$
|
102
|
|
|
14
|
%
|
|
NM Not Meaningful - variance of greater than 100%
|
|
Advice & Wealth Management pretax operating earnings
increased 36 percent to $162 million, reflecting robust revenue growth
and expense controls. Full year operating earnings increased 35 percent
to $598 million. Excluding results from former banking operations, full
year operating earnings increased 52 percent.
Margin expansion continued throughout 2013 primarily from improved
advisor productivity, the addition of experienced advisors and market
appreciation. Fourth quarter 2013 pretax operating margin was 14.4
percent compared to 11.8 percent a year ago and 14.2 percent
sequentially. Fourth quarter pretax operating margin included a
year-over-year negative impact of approximately 100 basis points from
continued low interest rates. Full year pretax operating margin was 13.9
percent, up from 11.4 percent for 2012.
Operating net revenues grew 12 percent to $1.1 billion driven by asset
growth in fee-based accounts from client inflows and improved client
activity, as well as market appreciation.
Operating expenses increased 9 percent to $965 million as business
growth resulted in higher distribution expenses. General and
administrative expenses declined 1 percent, demonstrating ongoing
expense discipline and the impact of ceasing certain banking operations
in 2012.
Total retail client assets grew 16 percent to $409 billion driven by
client net inflows, client acquisition and market appreciation. Wrap net
inflows increased 38 percent to $2.8 billion, and brokerage cash
balances increased to $19.6 billion. The combination of asset growth and
strong client activity drove a 14 percent increase in operating net
revenue per advisor, excluding results from former banking operations.
|
Ameriprise Financial, Inc.
|
Asset Management Segment Operating Results
|
|
(in millions, unaudited)
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
Year Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2013
|
|
|
2012
|
|
|
|
2013
|
|
|
2012
|
|
|
Asset Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
824
|
|
|
$
|
740
|
|
|
11
|
%
|
|
$
|
3,169
|
|
|
$
|
2,891
|
|
|
10
|
%
|
Expenses
|
|
|
630
|
|
|
|
599
|
|
|
(5
|
)
|
|
|
2,454
|
|
|
|
2,334
|
|
|
(5
|
)
|
Pretax operating earnings
|
|
$
|
194
|
|
|
$
|
141
|
|
|
38
|
|
|
$
|
715
|
|
|
$
|
557
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net pretax operating margin
|
|
|
40.2
|
%
|
|
|
33.6
|
%
|
|
|
|
|
37.8
|
%
|
|
|
34.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2013
|
|
|
2012
|
|
|
Total segment AUM(1) (billions)
|
|
$
|
501
|
|
|
$
|
455
|
|
|
10
|
%
|
Columbia Management AUM
|
|
$
|
357
|
|
|
$
|
330
|
|
|
8
|
%
|
Threadneedle AUM
|
|
$
|
147
|
|
|
$
|
128
|
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Total segment net flows (billions)
|
|
$
|
5.5
|
|
|
$
|
(3.9
|
)
|
|
NM
|
|
Retail net flows
|
|
$
|
4.5
|
|
|
$
|
(0.0
|
)
|
|
NM
|
|
Institutional net flows
|
|
$
|
0.8
|
|
|
$
|
(3.3
|
)
|
|
NM
|
|
Alternative net flows
|
|
$
|
0.2
|
|
|
$
|
(0.6
|
)
|
|
NM
|
|
|
(1) Subadvisory eliminations between Columbia
Management and Threadneedle are included in the company's Fourth
Quarter 2013 Statistical Supplement available at ir.ameriprise.com
|
|
NM Not Meaningful - variance of greater than 100%
|
|
Asset Management pretax operating earnings increased 38 percent
to $194 million driven by equity market appreciation, performance fees
at Threadneedle and continued expense management, partially offset by
the cumulative impact of net outflows. Full year operating earnings
increased 28 percent to $715 million.
Asset Management margins continue to be strong. In the fourth quarter,
adjusted net pretax operating margin was 40.2 percent compared to 33.6
percent a year ago and 40.0 percent in the prior quarter. Full year 2013
adjusted net pretax operating margin was 37.8 percent compared to 34.6
percent for full year 2012.
Operating net revenues grew 11 percent to $824 million, primarily driven
by asset growth from market appreciation, performance fees at
Threadneedle, as well as a shift to higher fee retail assets at
Threadneedle, partially offset by the impact of net outflows.
Operating expenses increased 5 percent to $630 million, reflecting
higher distribution expenses from market growth. Overall, expenses
remained well controlled, with general and administrative expenses
increasing 3 percent, primarily from performance-based compensation.
Assets under management grew 10 percent to $501 billion, reflecting
market appreciation and $5.5 billion of net inflows in the quarter.
Retail net inflows of $4.5 billion reflected strong inflows at
Threadneedle while Columbia benefitted from a higher level of reinvested
dividends. Institutional flows reflected good traction in third-party
mandates that offset continued outflows from former parent company
influenced mandates and former parent company affiliated distribution.
|
Ameriprise Financial, Inc.
|
Annuities Segment Operating Results
|
|
(in millions, unaudited)
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
Year Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2013
|
|
|
2012
|
|
|
|
2013
|
|
|
2012
|
|
|
Annuities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
658
|
|
|
$
|
636
|
|
|
3
|
%
|
|
$
|
2,583
|
|
|
$
|
2,524
|
|
|
2
|
%
|
Expenses
|
|
|
471
|
|
|
|
465
|
|
|
(1
|
)
|
|
|
1,897
|
|
|
|
1,957
|
|
|
3
|
|
Pretax operating earnings
|
|
$
|
187
|
|
|
$
|
171
|
|
|
9
|
|
|
$
|
686
|
|
|
$
|
567
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VA pretax operating earnings
|
|
$
|
156
|
|
|
$
|
129
|
|
|
21
|
%
|
|
$
|
532
|
|
|
$
|
376
|
|
|
41
|
%
|
FA pretax operating earnings
|
|
|
31
|
|
|
|
42
|
|
|
(26
|
)
|
|
|
154
|
|
|
|
191
|
|
|
(19
|
)
|
Total pretax operating earnings
|
|
$
|
187
|
|
|
$
|
171
|
|
|
9
|
|
|
$
|
686
|
|
|
$
|
567
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2013
|
|
|
2012
|
|
|
Items included in operating earnings:
|
|
|
|
|
|
|
|
|
|
|
Market impact on DAC and DSIC (mean reversion)
|
|
$
|
16
|
|
|
$
|
2
|
|
|
NM
|
|
Impact of variable annuity product changes
|
|
|
26
|
|
|
|
-
|
|
|
NM
|
|
Variable annuity liability model revision
|
|
|
-
|
|
|
|
43
|
|
|
NM
|
|
Total annuities impact
|
|
$
|
42
|
|
|
$
|
45
|
|
|
(7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
Variable annuity ending account balances (billions)
|
|
$
|
75.5
|
|
|
$
|
68.1
|
|
|
11
|
%
|
Variable annuity net flows (millions)
|
|
$
|
(275
|
)
|
|
$
|
(214
|
)
|
|
(29
|
)%
|
Fixed annuity ending account balances (billions)
|
|
$
|
13.3
|
|
|
$
|
13.8
|
|
|
(4
|
)%
|
Fixed annuity net flows (millions)
|
|
$
|
(292
|
)
|
|
$
|
(303
|
)
|
|
4
|
%
|
|
NM Not Meaningful - variance of greater than 100%
|
|
Annuities pretax operating earnings in the quarter increased 9
percent to $187 million compared to $171 million a year ago, reflecting
new business growth and market appreciation, partially offset by fixed
annuity spread compression.
During the quarter, the company added managed volatility fund options
(Portfolio Stabilizer) for its in-force variable annuities with living
benefit guarantees. These additional investment options have been well
received by policyholders, with sizable asset movement into the managed
volatility funds. The resulting earnings benefit in the quarter was $26
million and the asset shifts further enhance the product risk profile.
Variable annuity operating earnings increased 21 percent to $156 million
as equity market appreciation and the beneficial client behavior offset
higher distribution expenses from business growth and market
appreciation. Fixed annuity operating earnings declined 26 percent to
$31 million, primarily reflecting $12 million of continued spread
compression from low interest rates.
Variable annuity account balances grew 11 percent to $75.5 billion.
Asset growth was driven by market appreciation, partially offset by net
outflows primarily from a closed block of variable annuities sold
through third party channels. Variable annuity cash sales increased 3
percent from a year ago. Fixed annuity account balances declined 4
percent to $13.3 billion due to ongoing net outflows from low client
demand given the interest rate environment.
|
Ameriprise Financial, Inc.
|
Protection Segment Operating Results
|
|
(in millions, unaudited)
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
Year Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2013
|
|
|
2012
|
|
|
|
2013
|
|
2012
|
|
|
Protection
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
565
|
|
|
$
|
542
|
|
|
4
|
%
|
|
$
|
2,190
|
|
$
|
2,088
|
|
|
5
|
%
|
Expenses
|
|
|
483
|
|
|
|
449
|
|
|
(8
|
)
|
|
|
1,825
|
|
|
1,690
|
|
|
(8
|
)
|
Pretax operating earnings
|
|
$
|
82
|
|
|
$
|
93
|
|
|
(12
|
)
|
|
$
|
365
|
|
$
|
398
|
|
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2013
|
|
|
2012
|
|
|
Items included in operating earnings:
|
|
|
|
|
|
|
|
|
|
|
Market impact on DAC (mean reversion)
|
|
$
|
1
|
|
|
$
|
-
|
|
|
NM
|
|
Auto and home reserves
|
|
|
(20
|
)
|
|
|
-
|
|
|
NM
|
|
Superstorm Sandy losses
|
|
|
-
|
|
|
|
(20
|
)
|
|
NM
|
|
Total protection impact
|
|
$
|
(19
|
)
|
|
$
|
(20
|
)
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Life insurance in force (billions)
|
|
$
|
194
|
|
|
$
|
191
|
|
|
1
|
%
|
VUL/UL ending account balances (billions)
|
|
$
|
10.9
|
|
|
$
|
9.9
|
|
|
11
|
%
|
Auto & home policies in force (thousands)
|
|
|
838
|
|
|
|
756
|
|
|
11
|
%
|
|
NM Not Meaningful - variance of greater than 100%
|
|
Protection pretax operating earnings declined 12 percent to $82
million, primarily from increased reserves for auto policies and higher
claim levels in life and health. Overall life and health claims
experience continued to perform well and was within expectations, albeit
at a higher level than a year ago. Based on auto liability claims
development, the company increased reserves by $20 million.
VUL/UL account balances grew 11 percent, driven by strong 16 percent
growth in life insurance cash sales for the year and market appreciation.
Auto and home premium growth remained steady, up 10 percent compared to
a year ago.
|
Ameriprise Financial, Inc.
|
Corporate & Other Segment Operating Results
|
|
(in millions, unaudited)
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
Year Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2013
|
|
|
2012
|
|
|
|
2013
|
|
|
2012
|
|
|
Corporate & Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
1
|
|
|
$
|
-
|
|
|
NM
|
|
|
$
|
(11
|
)
|
|
$
|
20
|
|
|
NM
|
|
Expenses
|
|
|
107
|
|
|
|
81
|
|
|
(32
|
)%
|
|
|
334
|
|
|
|
290
|
|
|
(15
|
)%
|
Pretax operating loss
|
|
$
|
(106
|
)
|
|
$
|
(81
|
)
|
|
(31
|
)
|
|
$
|
(345
|
)
|
|
$
|
(270
|
)
|
|
(28
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2013
|
|
|
2012
|
|
|
Items included in operating earnings:
|
|
|
|
|
|
|
|
|
|
|
Debt retirement expense
|
|
$
|
|
(19
|
)
|
|
$
|
-
|
|
|
NM
|
|
Settlement with a third-party service provider
|
|
|
-
|
|
|
|
15
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
NM Not Meaningful - variance of greater than 100%
|
|
|
|
|
|
|
|
|
|
|
|
Corporate & Other pretax operating loss was $106 million for
the quarter compared to an $81 million loss a year ago. The current
quarter included a $19 million make whole expense associated with the
retirement of debt that will benefit earnings in future periods.
At Ameriprise Financial, we have been helping people feel confident
about their financial future since 1894. With outstanding asset
management, advisory and insurance capabilities and a nationwide network
of 10,000 financial advisors, we have the strength and expertise to
serve the full range of individual and institutional investors'
financial needs. For more information, or to find an Ameriprise
financial advisor, 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 2014 operating effective tax rate to be in the 28 to 30
percent range.
-
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 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, 2012
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, 2013. For information about Ameriprise Financial
entities, please refer to the Fourth Quarter 2013 Statistical Supplement
available at ir.ameriprise.com and the tables that follow in this news
release.
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Earnings
|
|
|
|
Quarter Ended December 31,
|
|
|
Per Diluted Share Quarter Ended December
31,
|
|
(in millions, except per share amounts, unaudited)
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
Net income attributable to Ameriprise Financial
|
|
$
|
296
|
|
|
$
|
389
|
|
|
$
|
1.46
|
|
|
$
|
1.81
|
|
Less: Income (loss) from discontinued operations, net of tax
|
|
|
(2
|
)
|
|
|
1
|
|
|
|
(0.01
|
)
|
|
|
0.01
|
|
Net income from continuing operations attributable to
Ameriprise Financial
|
|
|
298
|
|
|
|
388
|
|
|
|
1.47
|
|
|
|
1.80
|
|
Add: Market impact on variable annuity guaranteed benefits, net
of tax(1)
|
|
|
68
|
|
|
|
30
|
|
|
|
0.34
|
|
|
|
0.14
|
|
Add: Market impact on indexed universal life benefits, net of tax(1)
|
|
|
5
|
|
|
|
-
|
|
|
|
0.03
|
|
|
|
-
|
|
Add: Integration/restructuring charges, net of tax(1)
|
|
|
7
|
|
|
|
3
|
|
|
|
0.03
|
|
|
|
0.02
|
|
Add: Net realized (gains) losses, net of tax(1)
|
|
|
-
|
|
|
|
(54
|
)
|
|
|
-
|
|
|
|
(0.25
|
)
|
Operating earnings
|
|
$
|
378
|
|
|
$
|
367
|
|
|
$
|
1.87
|
|
|
$
|
1.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
198.3
|
|
|
|
210.8
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
202.3
|
|
|
|
215.1
|
|
|
|
|
|
|
|
|
|
|
(1) Calculated using the statutory tax rate of 35%.
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Earnings
|
|
|
|
|
|
|
Per Diluted Share
|
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
(in millions, except per share amounts, unaudited)
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
Net income attributable to Ameriprise Financial
|
|
$
|
1,334
|
|
|
$
|
1,029
|
|
|
$
|
6.44
|
|
|
$
|
4.62
|
|
Less: Loss from discontinued operations, net of tax
|
|
|
(3
|
)
|
|
|
(2
|
)
|
|
|
(0.02
|
)
|
|
|
(0.01
|
)
|
Net income from continuing operations attributable to
Ameriprise Financial
|
|
|
1,337
|
|
|
|
1,031
|
|
|
|
6.46
|
|
|
|
4.63
|
|
Add: Market impact on variable annuity guaranteed benefits, net
of tax(1)
|
|
|
111
|
|
|
|
173
|
|
|
|
0.53
|
|
|
|
0.77
|
|
Add: Market impact on indexed universal life benefits, net of tax(1)
|
|
|
8
|
|
|
|
-
|
|
|
|
0.04
|
|
|
|
-
|
|
Add: Integration/restructuring charges, net of tax(1)
|
|
|
9
|
|
|
|
46
|
|
|
|
0.04
|
|
|
|
0.21
|
|
Add: Net realized (gains) losses, net of tax(1)
|
|
|
(5
|
)
|
|
|
(5
|
)
|
|
|
(0.02
|
)
|
|
|
(0.02
|
)
|
Operating earnings
|
|
$
|
1,460
|
|
|
$
|
1,245
|
|
|
$
|
7.05
|
|
|
$
|
5.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
203.2
|
|
|
|
218.7
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
207.1
|
|
|
|
222.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
Total net revenues
|
|
$
|
2,946
|
|
|
$
|
2,674
|
|
|
$
|
11,199
|
|
|
$
|
10,217
|
|
Less: CIEs revenue
|
|
|
137
|
|
|
|
(9
|
)
|
|
|
345
|
|
|
|
71
|
|
Less: Net realized gains (losses)
|
|
|
-
|
|
|
|
82
|
|
|
|
7
|
|
|
|
7
|
|
Less: Market impact on indexed universal life benefits
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
(10
|
)
|
|
|
-
|
|
Less: Integration/restructuring charges
|
|
|
-
|
|
|
|
4
|
|
|
|
-
|
|
|
|
(4
|
)
|
Operating total net revenues
|
|
|
2,816
|
|
|
|
2,597
|
(1)
|
|
$
|
10,857
|
|
|
$
|
10,143
|
(1)
|
Less: Impact of continued low interest rates
|
|
|
(38
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Operating total net revenues excluding impact of continued low
interest rates
|
|
$
|
2,854
|
|
|
$
|
2,597
|
(1)
|
|
|
|
|
|
|
|
|
|
(1) Former banking operations contributed $12 million
to the fourth quarter 2012 and $111 million to the full year 2012
operating total net revenues.
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Total Expenses
|
|
|
|
Quarter Ended December 31,
|
|
|
Year Ended December 31,
|
|
(in millions, unaudited)
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
Total expenses
|
|
$
|
2,467
|
|
|
$
|
2,256
|
|
|
$
|
9,229
|
|
|
$
|
8,979
|
|
Less: CIEs expenses
|
|
|
53
|
|
|
|
48
|
|
|
|
204
|
|
|
|
199
|
|
Less: Market impact on variable annuity guaranteed benefits
|
|
|
104
|
|
|
|
45
|
|
|
|
170
|
|
|
|
265
|
|
Less: Market impact on indexed universal life benefits
|
|
|
2
|
|
|
|
-
|
|
|
|
3
|
|
|
|
-
|
|
Less: Integration/restructuring charges
|
|
|
11
|
|
|
|
9
|
|
|
|
14
|
|
|
|
67
|
|
Operating expenses
|
|
$
|
2,297
|
|
|
$
|
2,154
|
(1)
|
|
$
|
8,838
|
|
|
$
|
8,448
|
(1)
|
|
(1) Former banking operations contributed $12 million
to the fourth quarter 2012 and $62 million to the full year 2012
operating expenses.
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Pretax Operating Earnings
|
|
|
|
Quarter Ended December 31,
|
|
|
Year Ended December 31,
|
(in millions, unaudited)
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
Operating total net revenues
|
|
$
|
2,816
|
|
|
$
|
2,597
|
|
|
$
|
10,857
|
|
|
$
|
10,143
|
Operating expenses
|
|
|
2,297
|
|
|
|
2,154
|
|
|
|
8,838
|
|
|
|
8,448
|
Pretax operating earnings
|
|
$
|
519
|
|
|
$
|
443
|
|
|
$
|
2,019
|
|
|
$
|
1,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: General and Administrative Expense
|
|
|
|
|
Quarter Ended December 31,
|
|
(in millions, unaudited)
|
|
2013
|
|
|
2012
|
|
General and administrative expense
|
|
$
|
764
|
|
|
$
|
746
|
|
Less: CIEs expenses
|
|
|
15
|
|
|
|
6
|
|
Less: Integration/restructuring charges
|
|
|
11
|
|
|
|
9
|
|
Operating general and administrative expense
|
|
$
|
738
|
|
|
$
|
731
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
Quarter Ended December 31, 2012
|
|
(in millions, unaudited)
|
|
GAAP
|
|
|
Operating
|
|
Income from continuing operations before income tax provision
|
|
$
|
418
|
|
|
$
|
443
|
|
Less: Pretax loss attributable to noncontrolling interests
|
|
|
(57
|
)
|
|
|
-
|
|
Income from continuing operations before income tax provision
excluding consolidated investment entities
|
|
$
|
475
|
|
|
$
|
443
|
|
Income tax provision from continuing operations
|
|
$
|
87
|
|
|
$
|
76
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
20.8
|
%
|
|
|
17.2
|
%
|
Effective tax rate excluding noncontrolling interests
|
|
|
18.3
|
%
|
|
|
17.2
|
%
|
|
|
|
|
|
|
|
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Effective Tax Rate
|
|
|
|
Year Ended December 31, 2013
|
|
(in millions, unaudited)
|
|
GAAP
|
|
|
Operating
|
|
Income from continuing operations before income tax provision
|
|
$
|
1,970
|
|
|
$
|
2,019
|
|
Less: Pretax income attributable to noncontrolling interests
|
|
|
141
|
|
|
|
-
|
|
Income from continuing operations before income tax provision
excluding consolidated investment entities
|
|
$
|
1,829
|
|
|
$
|
2,019
|
|
Income tax provision from continuing operations
|
|
$
|
492
|
|
|
$
|
559
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
25.0
|
%
|
|
|
27.7
|
%
|
Effective tax rate excluding noncontrolling interests
|
|
|
26.9
|
%
|
|
|
27.7
|
%
|
|
|
|
|
|
|
|
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Asset Management Adjusted Net Pretax
Operating Margin
|
|
|
|
|
|
|
Quarter Ended
|
|
(in millions, unaudited)
|
|
December 31, 2013
|
|
|
December 31, 2012
|
|
|
September 30, 2013
|
|
Operating total net revenues
|
|
$
|
824
|
|
|
$
|
740
|
|
|
$
|
777
|
|
Less: Distribution pass through revenues
|
|
|
229
|
|
|
|
209
|
|
|
|
224
|
|
Less: Subadvisory and other pass through revenues
|
|
|
100
|
|
|
|
103
|
|
|
|
96
|
|
Adjusted operating revenues
|
|
$
|
495
|
|
|
$
|
428
|
|
|
$
|
457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax operating earnings
|
|
$
|
194
|
|
|
$
|
141
|
|
|
$
|
178
|
|
Less: Operating net investment income
|
|
|
4
|
|
|
|
7
|
|
|
|
5
|
|
Add: Amortization of intangibles
|
|
|
9
|
|
|
|
10
|
|
|
|
10
|
|
Adjusted operating earnings
|
|
$
|
199
|
|
|
$
|
144
|
|
|
$
|
183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net pretax operating margin
|
|
|
40.2
|
%
|
|
|
33.6
|
%
|
|
|
40.0
|
%
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Asset Management Adjusted Net Pretax
Operating Margin
|
|
|
|
Year Ended December 31,
|
|
(in millions, unaudited)
|
|
2013
|
|
|
2012
|
|
Operating total net revenues
|
|
$
|
3,169
|
|
|
$
|
2,891
|
|
Less: Distribution pass through revenues
|
|
|
892
|
|
|
|
822
|
|
Less: Subadvisory and other pass through revenues
|
|
|
430
|
|
|
|
399
|
|
Adjusted operating revenues
|
|
$
|
1,847
|
|
|
$
|
1,670
|
|
|
|
|
|
|
|
|
|
|
Pretax operating earnings
|
|
$
|
715
|
|
|
$
|
557
|
|
Less: Operating net investment income
|
|
|
54
|
|
|
|
19
|
|
Add: Amortization of intangibles
|
|
|
38
|
|
|
|
40
|
|
Adjusted operating earnings
|
|
$
|
699
|
|
|
$
|
578
|
|
|
|
|
|
|
|
|
|
|
Adjusted net pretax operating margin
|
|
|
37.8
|
%
|
|
|
34.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Ameriprise Financial, Inc.
|
Reconciliation Table: Return on Equity (ROE) Excluding Accumulated
|
Other Comprehensive Income "AOCI"
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
(in millions, unaudited)
|
|
2013
|
|
|
2012
|
|
Net income attributable to Ameriprise Financial
|
|
$
|
1,334
|
|
|
$
|
1,029
|
|
Less: Loss from discontinued operations, net of tax
|
|
|
(3
|
)
|
|
|
(2
|
)
|
Net income from continuing operations attributable to Ameriprise
Financial, as reported
|
|
|
1,337
|
|
|
|
1,031
|
|
Less: Adjustments (1)
|
|
|
(123
|
)
|
|
|
(214
|
)
|
Operating earnings
|
|
$
|
1,460
|
|
|
$
|
1,245
|
|
|
|
|
|
|
|
|
|
|
Total Ameriprise Financial, Inc. shareholders' equity
|
|
$
|
8,582
|
|
|
$
|
9,071
|
|
Less: Accumulated other comprehensive income, net of tax
|
|
|
821
|
|
|
|
1,001
|
|
Total Ameriprise Financial, Inc. shareholders' equity excluding AOCI
|
|
|
7,761
|
|
|
|
8,070
|
|
Less: Equity impacts attributable to the consolidated investment
entities
|
|
|
333
|
|
|
|
397
|
|
Operating equity
|
|
$
|
7,428
|
|
|
$
|
7,673
|
|
|
|
|
|
|
|
|
|
|
Return on equity, excluding AOCI
|
|
|
17.2
|
%
|
|
|
12.8
|
%
|
Operating return on equity, excluding AOCI (2)
|
|
|
19.7
|
%
|
|
|
16.2
|
%
|
|
|
|
|
|
|
|
|
|
(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)
|
|
2013
|
|
|
2012
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
Management and financial advice fees
|
|
$
|
1,397
|
|
|
$
|
1,217
|
|
|
15
|
%
|
Distribution fees
|
|
|
448
|
|
|
|
427
|
|
|
5
|
|
Net investment income
|
|
|
458
|
|
|
|
503
|
|
|
(9
|
)
|
Premiums
|
|
|
333
|
|
|
|
311
|
|
|
7
|
|
Other revenues
|
|
|
317
|
|
|
|
226
|
|
|
40
|
|
Total revenues
|
|
|
2,953
|
|
|
|
2,684
|
|
|
10
|
|
Banking and deposit interest expense
|
|
|
7
|
|
|
|
10
|
|
|
30
|
|
Total net revenues
|
|
|
2,946
|
|
|
|
2,674
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
Distribution expenses
|
|
|
793
|
|
|
|
702
|
|
|
(13
|
)
|
Interest credited to fixed accounts
|
|
|
206
|
|
|
|
209
|
|
|
1
|
|
Benefits, claims, losses and settlement expenses
|
|
|
563
|
|
|
|
443
|
|
|
(27
|
)
|
Amortization of deferred acquisition costs
|
|
|
54
|
|
|
|
89
|
|
|
39
|
|
Interest and debt expense
|
|
|
87
|
|
|
|
67
|
|
|
(30
|
)
|
General and administrative expense
|
|
|
764
|
|
|
|
746
|
|
|
(2
|
)
|
Total expenses
|
|
|
2,467
|
|
|
|
2,256
|
|
|
(9
|
)
|
Income from continuing operations before income tax provision
|
|
|
479
|
|
|
|
418
|
|
|
15
|
|
Income tax provision
|
|
|
97
|
|
|
|
87
|
|
|
(11
|
)
|
Income from continuing operations
|
|
|
382
|
|
|
|
331
|
|
|
15
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
(2
|
)
|
|
|
1
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
380
|
|
|
|
332
|
|
|
14
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
84
|
|
|
|
(57
|
)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Ameriprise Financial
|
|
$
|
296
|
|
|
$
|
389
|
|
|
(24
|
)
|
|
NM Not Meaningful - variance of greater than 100%
|
|
|
Ameriprise Financial, Inc.
|
Consolidated GAAP Results
|
|
(in millions, unaudited)
|
|
Year Ended December 31,
|
|
|
% Better/ (Worse)
|
|
2013
|
|
|
2012
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Management and financial advice fees
|
|
$
|
5,253
|
|
|
$
|
4,692
|
|
|
12
|
%
|
Distribution fees
|
|
|
1,771
|
|
|
|
1,616
|
|
|
10
|
|
Net investment income
|
|
|
1,889
|
|
|
|
1,933
|
|
|
(2
|
)
|
Premiums
|
|
|
1,282
|
|
|
|
1,223
|
|
|
5
|
|
Other revenues
|
|
|
1,035
|
|
|
|
795
|
|
|
30
|
|
Total revenues
|
|
|
11,230
|
|
|
|
10,259
|
|
|
9
|
|
Banking and deposit interest expense
|
|
|
31
|
|
|
|
42
|
|
|
26
|
|
Total net revenues
|
|
|
11,199
|
|
|
|
10,217
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Distribution expenses
|
|
|
3,036
|
|
|
|
2,698
|
|
|
(13
|
)
|
Interest credited to fixed accounts
|
|
|
806
|
|
|
|
831
|
|
|
3
|
|
Benefits, claims, losses and settlement expenses
|
|
|
1,954
|
|
|
|
1,899
|
|
|
(3
|
)
|
Amortization of deferred acquisition costs
|
|
|
207
|
|
|
|
286
|
|
|
28
|
|
Interest and debt expense
|
|
|
281
|
|
|
|
276
|
|
|
(2
|
)
|
General and administrative expense
|
|
|
2,945
|
|
|
|
2,989
|
|
|
1
|
|
Total expenses
|
|
|
9,229
|
|
|
|
8,979
|
|
|
(3
|
)
|
Income from continuing operations before income tax provision
|
|
|
1,970
|
|
|
|
1,238
|
|
|
59
|
|
Income tax provision
|
|
|
492
|
|
|
|
335
|
|
|
(47
|
)
|
Income from continuing operations
|
|
|
1,478
|
|
|
|
903
|
|
|
64
|
|
Loss from discontinued operations, net of tax
|
|
|
(3
|
)
|
|
|
(2
|
)
|
|
(50
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
1,475
|
|
|
|
901
|
|
|
64
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
141
|
|
|
|
(128
|
)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Ameriprise Financial
|
|
$
|
1,334
|
|
|
$
|
1,029
|
|
|
30
|
|
|
NM Not Meaningful - variance of greater than 100%
|
|
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|