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Results of Operations by Segment
Year Ended December 31, 2006 Compared to Year Ended December 31, 2005
The following tables present summary financial information by segment and reconciliation to consolidated totals derived from Note 27
to our Consolidated Financial Statements for the years ended December 31, 2006 and 2005:
Years Ended December 31,
Percent Share Percent Share
2006 of Total 2005 of Total
(in millions, except percentages)
Total revenues
Asset Accumulation and Income $ 5,928 73 % $ 5,350 71 %
Protection 1,969 24 1,948 26
Corporate and Other 284 4 212 3
Eliminations (41) (1) (26) —
Consolidated total revenues $ 8,140 100 % $7,484 100 %
Total expenses
Asset Accumulation and Income $ 5,037 69 % $ 4,634 69 %
Protection 1,546 21 1,495 22
Corporate and Other 801 11 636 9
Eliminations (41) (1) (26) —
Consolidated total expenses $ 7,343 100 % $ 6,739 100 %
Pretax segment income (loss)
Asset Accumulation and Income $ 891 112 % $ 716 96 %
Protection 423 53 453 61
Corporate and Other (517) (65) (424) (57)
Consolidated income before income tax provision and
discontinued operations $ 797 100 % $ 745 100 %
Asset Accumulation and Income
The following table presents the results of operations of our AA&I segment for the years ended December 31, 2006 and 2005:
Years Ended December 31,
2006 2005 Change
(in millions, except percentages)
Revenues
Management, financial advice and service fees $ 2,706 $ 2,316 $ 390 17 %
Distribution fees 1,186 1,041 145 14
Net investment income 1,799 1,923 (124) (6)
Other revenues 237 70 167 #
Total revenues 5,928 5,350 578 11
Expenses
Compensation and benefits—field 1,537 1,266 271 21
Interest credited to account values 1,119 1,164 (45) (4)
Benefits, claims, losses and settlement expenses 41 52 (11) (21)
Amortization of deferred acquisition costs 339 323 16 5
Interest and debt expense 15 —15—
Other expenses 1,986 1,829 157 9
Total expenses 5,037 4,634 403 9
Pretax segment income $ 891 $ 716 $ 175 24
# Variance of 100% or greater.
34 Ameriprise Financial, Inc. 2006 Annual Report