Ameriprise 2006 Annual Report Download - page 32

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Consolidated Results of Operations
Year Ended December 31, 2006 Compared to Year Ended December 31, 2005
The following table presents our consolidated results of operations for the years ended December 31, 2006 and 2005. The travel
insurance and card related business of our AMEX Assurance subsidiary was ceded to American Express effective July 1, 2005.
AMEX Assurance was deconsolidated on a U.S. GAAP basis effective September 30, 2005. The results of operations of
AMEX Assurance that were consolidated during the year ended December 31, 2005 are also presented in the table below.
Years Ended December 31, AMEX
2006 2005 Change Assurance(1)(2)
(in millions, except percentages)
Revenues
Management, financial advice and service fees $ 2,965 $ 2,578 $ 387 15 % $ 3
Distribution fees 1,300 1,150 150 13 —
Net investment income 2,204 2,241 (37) (2) 9
Premiums 932 979 (47) (5) 127
Other revenues 739 536 203 38 (1)
Total revenues 8,140 7,484 656 9 138
Expenses
Compensation and benefits:
Field 1,765 1,515 250 17 37
Non-field 1,348 1,135 213 19 —
Total compensation and benefits 3,113 2,650 463 17 37
Interest credited to account values 1,264 1,310 (46) (4) —
Benefits, claims, losses and settlement expenses 930 880 50 6 (12)
Amortization of deferred acquisition costs 472 431 41 10 17
Interest and debt expense 116 73 43 59 —
Separation costs 361 293 68 23 —
Other expenses 1,087 1,102 (15) (1) 14
Total expenses 7,343 6,739 604 9 56
Income before income tax provision and discontinued operations 797 745 52 7 82
Income tax provision 166 187 (21) (11) 26
Income before discontinued operations 631 558 73 13 56
Income from discontinued operations, net of tax —16 (16) # —
Net income $ 631 $ 574 $ 57 10 $ 56
# Variance of 100% or greater.
(1) AMEX Assurance results of operations were consolidated in 2005 through September 30, 2005.
(2) AMEX Assurance premiums in 2005 included $10 million in intercompany revenues related to errors and omissions coverage.
30 Ameriprise Financial, Inc. 2006 Annual Report