Ameriprise 2005 Annual Report Download - page 43

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Protection
The following table presents financial information for our Protection segment for the periods indicated.
Years ended December 31, 2005 2004 2003
Amount % Change(a) Amount % Change(a) Amount
(in millions, except percentages)
Revenues
Management, financial advice and service fees $ 67 15 % $ 58 30 % $ 44
Distribution fees 106 1 105 3 102
Net investment income 337 7 316 10 288
Premiums 1,001 (2) 1,023 14 895
Other revenues 435 4 421 4 404
Total revenues 1,946 1 1,923 11 1,733
Expenses
Compensation and benefits—field 126 41 90 14 79
Interest credited to account values 144 – 143 (6) 152
Benefits, claims, losses and settlement expenses 844 9 777 8 717
Amortization of deferred acquisition costs 108 (18) 132 (51) 268
Interest and debt expense 24 28 19 28 15
Other expenses 280 1 274 19 231
Total expenses 1,526 6 1,435 (2) 1,462
Income before income tax provision, discontinued operations
and accounting change $ 420 (14) $ 488 80 $ 271
(a) Percentage change calculated using thousands.
# Variance of 100% or greater.
The following table reconciles the Protection segment to non-GAAP supplemental information excluding AMEX Assurance.
Management believes that the presentation of financial measures excluding AMEX Assurance best reflects the underlying perform-
ance of our ongoing operations and facilitates a more meaningful trend analysis. The AMEX Assurance travel insurance and card
related business was ceded to American Express effective July 1, 2005 and was deconsolidated on a U.S. GAAP basis effective
September 30, 2005.
Non-GAAP Supplemental Information
Protection
AMEX excluding AMEX
Protection Assurance Assurance
Years Ended Years Ended Years Ended
December 31, % December 31, December 31, %
2005 2004 Change(a) 2005(b) 2004 2005 2004 Change(a)
(in millions, except
percentages, unaudited) (in millions, except percentages, unaudited)
Revenues
Management, financial advice and service fees $67$ 58 15 % $3 $4 $64$ 54 17 %
Distribution fees 106 105 1 ––106 105 1
Net investment income 337 316 7 912 328 304 8
Premiums 1,001 1,023 (2) 127 245 874 778 12
Other revenues 435 421 4 (1) (1) 436 422 4
Total revenues 1,946 1,923 1 138 260 1,808 1,663 9
Expenses
Compensation and benefits—field 126 90 41 37 289 88 3
Interest credited to account values 144 143 – ––144 143 –
Benefits, claims, losses and settlement expenses 844 777 9 (12) 42 856 735 17
Amortization of deferred acquisition costs 108 132 (18) 17 33 91 99 (8)
Interest and debt expense 24 19 28 ––24 19 28
Other expenses 280 274 1 14 30 266 244 8
Total expenses 1,526 1,435 6 56 107 1,470 1,328 11
Income before income tax provision, discontinued
operations and accounting change $ 420 $ 488 (14) $82 $153 $ 338 $ 335 1
(a) Percentage change calculated using thousands.
(b) For the year ended December 31, 2005, AMEX Assurance premiums include $10 million in intercompany revenues related to errors and omissions coverage.
# Variance of 100% or greater.
Ameriprise Financial, Inc. | 41