Ameriprise 2010 Annual Report Download - page 80

The following table presents the results of operations of our Protection segment:
Years Ended December 31,
2010 2009
Less: Less: Operating
GAAP Adjustments(1) Operating GAAP Adjustments(1) Operating Change
(in millions, except percentages)
Revenues
Management and financial advice
fees $ 54 $ — $ 54 $ 47 $ — $ 47 $ 7 15%
Distribution fees 96 — 96 97 — 97 (1) (1)
Net investment income 429 1 428 422 27 395 33 8
Premiums 1,055 — 1,055 1,020 — 1,020 35 3
Other revenues 422 — 422 386 — 386 36 9
Total revenues 2,056 1 2,055 1,972 27 1,945 110 6
Banking and deposit interest
expense 1 — 1 1 — 1 — —
Total net revenues 2,055 1 2,054 1,971 27 1,944 110 6
Expenses
Distribution expenses 32 — 32 22 — 22 10 45
Interest credited to fixed accounts 147 — 147 144 — 144 3 2
Benefits, claims, losses and
settlement expenses 1,066 — 1,066 924 — 924 142 15
Amortization of deferred acquisition
costs 183 — 183 159 — 159 24 15
General and administrative expense 223 — 223 226 — 226 (3) (1)
Total expenses 1,651 — 1,651 1,475 — 1,475 176 12
Pretax income $ 404 $ 1 $ 403 $ 496 $ 27 $ 469 $ (66) (14)%
(1) Adjustments include net realized gains or losses.
Our Protection segment pretax income was $404 million for the year ended December 31, 2010, a decrease of
$92 million, or 19%, from $496 million for the prior year. Our Protection segment pretax operating income, which excludes
net realized gains or losses, was $403 million for the year ended December 31, 2010, a decrease of $66 million, or 14%,
from $469 million for the prior year.
Net Revenues
Net revenues increased $84 million, or 4%, to $2.1 billion for the year ended December 31, 2010 compared to
$2.0 billion for the prior year. Operating net revenues, which exclude net realized gains or losses, increased $110 million,
or 6%, to $2.1 billion for the year ended December 31, 2010 compared to $1.9 billion for the prior year primarily due to
the impact of updating valuation assumptions and model changes and an increase in net investment income and
premiums.
Management and financial advice fees increased $7 million, or 15%, to $54 million for the year ended December 31,
2010 compared to $47 million for the prior year primarily due to higher management fees from VUL separate account
growth due to market appreciation.
Net investment income increased $7 million, or 2%, to $429 million for the year ended December 31, 2010 compared to
$422 million for the prior year. Operating net investment income, which excludes net realized gains or losses, increased
$33 million, or 8%, to $428 million for the year ended December 31, 2010 compared to $395 million for the prior year
primarily due to higher investment yields and increased general account assets.
Premiums increased $35 million, or 3%, to $1.1 billion for the year ended December 31, 2010 compared to $1.0 billion
for the prior year due to growth in Auto and Home premiums driven by higher volumes. Auto and Home policy counts
increased 9% period-over-period.
Other revenues increased $36 million, or 9%, to $422 million for the year ended December 31, 2010 compared to
$386 million for the prior year primarily due to updating valuation assumptions and model changes. Other revenues in
2010 included a charge of $20 million from updating valuation assumptions and model changes compared to a charge of
$65 million in the prior year.
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