Ameriprise 2009 Annual Report Download - page 85

Other revenues decreased $65 million from $50 million in 2007 to a loss of $15 million in 2008 primarily due to decreases in revenue
related to certain consolidated limited partnerships. Other revenues in 2008 included $36 million from the sale of certain operating
assets. Other revenues in 2007 included $25 million of additional proceeds related to the sale of our defined contribution recordkeeping
business in 2006, as well as an $8 million gain from the sale of certain Threadneedle limited partnerships.
Expenses
Total expenses decreased $197 million, or 13%, primarily due to a $141 million decrease in general and administrative expense driven by
expense management initiatives and lower incentive compensation accruals. Distribution expenses decreased $47 million related to
decreased mutual fund sales volume.
Annuities
Our Annuities segment provides variable and fixed annuity products of RiverSource Life companies to our retail clients primarily through
our Advice & Wealth Management segment and to the retail clients of unaffiliated advisors through third-party distribution.
The following table presents the results of operations of our Annuities segment:
Years Ended December 31,
2008 2007 Change
(in millions, except percentages)
Revenues
Management and financial advice fees $ 478 $ 510 $ (32) (6)%
Distribution fees 275 267 8 3
Net investment income 652 1,196 (544) (45)
Premiums 85 95 (10) (11)
Other revenues 128 138 (10) (7)
Total revenues 1,618 2,206 (588) (27)
Banking and deposit interest expense — — — —
Total net revenues 1,618 2,206 (588) (27)
Expenses
Distribution expenses 207 194 13 7
Interest credited to fixed accounts 646 706 (60) (8)
Benefits, claims, losses and settlement expenses 269 329 (60) (18)
Amortization of deferred acquisition costs 576 318 258 81
General and administrative expense 207 236 (29) (12)
Total expenses 1,905 1,783 122 7
Pretax income (loss) $ (287) $ 423 $ (710) NM
NM Not Meaningful.
Our Annuities segment pretax loss was $287 million in 2008, down $710 million from pretax income of $423 million in 2007.
Net revenues
Net revenues decreased $588 million to $1.6 billion in 2008, compared to $2.2 billion in 2007, primarily driven by a $544 million
decrease in net investment income.
Management and financial advice fees decreased $32 million to $478 million driven by lower net flows and market declines. Variable
annuities had net inflows of $2.7 billion in 2008 compared to net inflows of $4.9 billion in 2007.
Net investment income decreased $544 million, or 45%, to $652 million in 2008 compared to $1.2 billion in 2007 primarily due to net
realized investment losses on Available-for-Sale securities of $350 million, which primarily consisted of other-than-temporary
impairments, compared to net realized investment gains of $33 million in 2007. Also contributing to lower net investment income were
70 ANNUAL REPORT 2009