Ameriprise 2007 Annual Report Download - page 40

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Our Protection segment pretax income was $485 million for 2007,
up $51 million, or 12%, from $434 million in 2006.
Net revenues
Net revenues were $2.0 billion, an increase of $94 million, or 5%,
from $1.9 billion in 2006. This increase was the result of an increase
in auto and home premiums, driven by higher policy counts, an
increase in management and financial advice fees, driven by an
increase in fees from our VUL/UL products, and an increase in other
revenues which was due primarily to the deconsolidation of a variable
interest entity, resulting in a gain of $19 million.
Expenses
Total expenses were $1.5 billion, an increase of $43 million, or 3%,
from 2006. The increase was due to an increase in the amortization
of DAC, which was largely the result of DAC unlocking. DAC
unlocking resulted in an increase of $20 million in amortization
expense in 2007, compared to a decrease of $52 million in 2006.
Additionally, in 2006, $28 million of additional DAC amortization
was recognized as a result of a DAC adjustment related to auto and
home insurance products. Also contributing to the increase in
expense was an increase in general and administrative expense, which
was due to increased technology and overhead costs. These increases
were partially offset by a decrease in distribution expenses, which was
due primarily to an increase in capitalized expense.
Corporate & Other
The following table presents the results of operations of our Corpo-
rate & Other segment for the years ended December 31, 2007 and
2006:
Years Ended December 31,
2007 2006 Change
(in millions, except percentages)
Revenues
Management and
financial advice fees $ 1 $ — $ 1 #%
Net investment income 22 29 (7) (24)
Other revenues 76 1 17
Total revenues 30 35 (5) (14)
Banking and deposit
interest expense 67 (1) (14)
Total net revenues 24 28 (4) (14)
Expenses
Distribution expenses 1— 1 #
Interest and debt expense 112 101 11 11
Separation costs 236 361 (125) (35)
General and
administrative expense 159 116 43 37
Total expenses 508 578 (70) (12)
Pretax loss $(484) $(550) $ 66 12
# Variance of 100% or greater.
Our Corporate & Other pretax segment loss in 2007 was
$484 million, an improvement of $66 million compared to a pretax
segment loss of $550 million in 2006. The improvement was prima-
rily due to a decrease in separation costs of $125 million, as the
separation from American Express was completed in 2007. This
improvement was offset partially by an increase in general and
administrative expense which was the result of increased technology
and overhead costs.
38 Ameriprise Financial 2007 Annual Report