Ameriprise 2010 Annual Report Download - page 81

Expenses
Total expenses increased $176 million, or 12%, to $1.7 billion for the year ended December 31, 2010 compared to
$1.5 billion for the prior year primarily due to updating valuation assumptions and model changes and an increase in
insurance claims compared to the prior year.
Benefits, claims, losses and settlement expenses increased $142 million, or 15%, to $1.1 billion for the year ended
December 31, 2010 compared to $924 million for the prior year primarily due to updating valuation assumptions and
model changes and higher claims in 2010. Benefits, claims, losses and settlement expenses in 2010 included an expense
of $44 million from updating valuation assumptions and model changes compared to a benefit of $33 million in the prior
year. Benefits, claims, losses and settlement expenses related to our Auto and Home business increased compared to the
prior year primarily due to higher business volumes and higher claims driven by $11 million in catastrophe losses from a
hail storm in the Phoenix area and a $16 million reserve increase for higher auto liability claims. In addition, benefits,
claims, losses and settlement expenses in 2010 included higher disability income and long-term care insurance claims
and higher reserves for universal life products with secondary guarantees compared to the prior year.
Amortization of DAC increased $24 million, or 15%, to $183 million for the year ended December 31, 2010 compared to
$159 million in the prior year primarily due to updating valuation assumptions and model changes. Amortization of DAC for
2010 included a benefit of $22 million from updating valuation assumptions and model changes compared to a benefit of
$55 million in the prior year. The market impact on DAC resulted in a benefit of $10 million in 2010 compared to a
benefit of $3 million in the prior year.
Corporate & Other
Our Corporate & Other segment consists of net investment income on corporate level assets, including excess capital held
in our subsidiaries and other unallocated equity and other revenues from various investments as well as unallocated
corporate expenses. The Corporate & Other segment also includes revenues and expenses of CIEs.
Management believes that operating measures, which exclude net realized gains or losses, integration and restructuring
charges and the impact of consolidating CIEs for our Corporate & Other segment, best reflect the underlying performance
of our 2010 and 2009 core operations and facilitate a more meaningful trend analysis. See our discussion on the use of
these non-GAAP measures in the Overview section above.
The following table presents the results of operations of our Corporate & Other segment:
Years Ended December 31,
2010 2009
Less: Less: Operating
GAAP Adjustments(1) Operating GAAP Adjustments(1) Operating Change
(in millions, except percentages)
Revenues
Net investment income (loss) $ 273 $ 294 $ (21) $ (57) $ 2 $ (59) $ 38 64%
Other revenues 153 125 28 90 28 62 (34) (55)
Total revenues 426 419 7 33 30 3 4 NM
Banking and deposit interest expense 3 — 3 7 6 1 2 NM
Total net revenues 423 419 4 26 24 2 2 100
Expenses
Distribution expenses 1 — 1 3 — 3 (2) (67)
Interest and debt expense 288 181 107 127 — 127 (20) (16)
General and administrative expense 211 65 146 146 13 133 13 10
Total expenses 500 246 254 276 13 263 (9) (3)
Pretax loss (77) 173 (250) (250) 11 (261) 11 4
Less: Net income attributable to
noncontrolling interests 163 163 — 15 15 — — —
Pretax loss attributable to Ameriprise
Financial $ (240) $ 10 $ (250) $ (265) $ (4) $ (261) $ 11 4%
NM Not Meaningful.
(1) Includes revenues and expenses of the CIEs, net realized gains or losses and integration and restructuring charges.
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