Ameriprise 2010 Annual Report Download - page 68

The total pretax impacts on our revenues and expenses for 2010 attributable to the review of valuation assumptions and
model changes were as follows:
Benefits, Claims,
Losses and Amortization
Segment Pretax Benefit (Charge) Other Revenues Settlement Expenses of DAC Total
(in millions)
Valuation assumptions and model changes:
Annuities $ — $ (205) $ 336 $ 131
Protection (20) (44) 22 (42)
Total $ (20) $ (249) $ 358 $ 89
The total pretax impacts on our revenues and expenses for 2009 attributable to the review of valuation assumptions were
as follows:
Benefits, Claims,
Losses and Amortization
Segment Pretax Benefit (Charge) Other Revenues Settlement Expenses of DAC Total
(in millions)
Valuation assumptions:
Annuities $ — $ 47 $ 64 $ 111
Protection (65) 33 55 23
Total $ (65) $ 80 $ 119 $ 134
Results for 2010 included a $34 million pretax benefit from the market’s impact on DAC and DSIC compared to
$30 million in 2009. Results for 2010 also included a $55 million pretax variable annuity benefits expense, net of hedges,
DAC and DSIC, related to market impacts compared to $35 million in the prior year.
Net Revenues
Net revenues increased $2.2 billion, or 28%, to $10.0 billion for the year ended December 31, 2010 compared to
$7.8 billion for the prior year. Operating net revenues exclude net realized gains or losses and revenues of the CIEs and
include the fees we earn from services provided to the CIEs. Operating net revenues increased $1.9 billion, or 24%, to
$9.6 billion for the year ended December 31, 2010 compared to $7.7 billion for the prior year primarily due to growth in
asset-based management fees and distribution fees driven by higher asset levels reflecting the Columbia Management
Acquisition, market appreciation and net inflows in wrap account assets and variable annuities, as well as increased client
activity levels.
Management and financial advice fees increased $1.3 billion, or 46%, to $4.0 billion for the year ended December 31,
2010 compared to $2.7 billion for the prior year. Operating management and financial advice fees include the fees we
earn from services provided to the CIEs. Operating management and financial advice fees increased $1.3 billion, or 48%,
to $4.0 billion for the year ended December 31, 2010 compared to $2.7 billion for the prior year primarily due to higher
asset levels reflecting the Columbia Management Acquisition, market appreciation and net inflows in wrap account assets
and variable annuities. The daily average S&P 500 Index increased 20% compared to the prior year. Wrap account assets
increased $17.8 billion, or 19%, to $112.7 billion at December 31, 2010 compared to the prior year due to net inflows
and market appreciation. Average variable annuities contract accumulation values increased $10.3 billion, or 25%, from
the prior year due to higher equity market levels and net inflows. Total Asset Management managed assets increased
$213.7 billion, or 88%, to $456.8 billion at December 31, 2010 compared to the prior year primarily due to the Columbia
Management Acquisition and market appreciation, partially offset by net outflows.
Distribution fees increased $288 million, or 20%, to $1.7 billion for the year ended December 31, 2010 compared to
$1.4 billion in the prior year primarily due to higher asset-based fees driven by growth in assets from the Columbia
Management Acquisition, market appreciation and net inflows in wrap account assets and variable annuities, as well as
increased client activity.
Net investment income increased $311 million, or 16%, to $2.3 billion for the year ended December 31, 2010 compared
to $2.0 billion in the prior year. Net investment income for 2010 included a $275 million gain for changes in the assets
and liabilities of CIEs, primarily debt and underlying syndicated loans, compared to $2 million in the prior year. Operating
net investment income excludes net realized gains or losses and changes in the assets and liabilities of CIEs, primarily
debt and underlying syndicated loans. Operating net investment income increased $58 million, or 3%, to $2.0 billion for
the year ended December 31, 2010 compared to $1.9 billion for the prior year primarily due to a $42 million increase in
investment income on fixed maturity securities driven by higher fixed annuity account balances and higher investment
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