Ameriprise 2010 Annual Report Download - page 84

The following table presents the components of the adjustments in the table above:
Years Ended December 31,
2009 2008
Other Total Other Total
CIEs Adjustments(1) Adjustments CIEs Adjustments(1) Adjustments
(in millions)
Revenues
Management and financial advice fees $ (2) $ — $ (2) $ (2) $ — $ (2)
Distribution fees — — — — — —
Net investment income 2 53 55 — (777) (777)
Premiums — — — — — —
Other revenues 28 — 28 (46) — (46)
Total revenues 28 53 81 (48) (777) (825)
Banking and deposit interest expense 6 — 6 1 — 1
Total net revenues 22 53 75 (49) (777) (826)
Expenses
Distribution expenses — — — — — —
Interest credited to fixed accounts — — — — — —
Benefits, claims, losses and settlement
expenses — — — — — —
Amortization of deferred acquisition costs — — — — — —
Interest and debt expense — — — — — —
General and administrative expense 7 98 105 5 79 84
Total expenses 7 98 105 5 79 84
Pretax income (loss) 15 (45) (30) (54) (856) (910)
Income tax benefit — (15) (15) — (300) (300)
Net income (loss) 15 (30) (15) (54) (556) (610)
Less: Net income (loss) attributable to
noncontrolling interests 15 — 15 (54) — (54)
Net loss attributable to Ameriprise Financial $ — $ (30) $ (30) $ — $ (556) $ (556)
(1) Other adjustments include net realized gains or losses and integration and restructuring charges.
Overall
Net income attributable to Ameriprise Financial for the year ended December 31, 2009 was $722 million compared to a
net loss attributable to Ameriprise Financial of $36 million for the prior year. Operating net income attributable to
Ameriprise Financial, which includes the fees we earn from services provided to the CIEs and excludes revenues and
expenses of the CIEs, net realized gains or losses and integration and restructuring charges, was $752 million for the year
ended December 31, 2009 compared to $520 million for the prior year. Operating results for 2009 reflect the impacts
from a 22% decline in the daily average S&P 500 Index on a period-over-period basis, lower short term interest rates and
lower client activity, offset by growth in spread products, net inflows in wrap accounts and Asset Management and expense
controls. Operating results for 2008 were impacted by market dislocation, money market support costs and an increase in
DAC and DSIC amortization.
Our annual review of valuation assumptions for RiverSource Life products in the third quarter of 2009 resulted in a net
pretax benefit of $134 million, consisting of a decrease in expenses primarily from updating product mortality assumptions
for certain life insurance products and from the impact of updating product spreads and expense assumptions, partially
offset by a decrease in revenues related to the reinsurance impacts from updating product mortality assumptions. Third
quarter 2008 results included a $106 million pretax benefit resulting from our review of valuation assumptions and our
conversion to a new industry standard valuation system that provides enhanced modeling capabilities. The review of
valuation assumptions in the third quarter of 2008 resulted in a decrease in expenses primarily from updating mortality
and expense assumptions for certain life insurance products and from updating fund mix and policyholder behavior
assumptions for variable annuities with guaranteed benefits. The valuation system conversion also resulted in an increase
in revenue primarily from improved modeling of the expected value of existing reinsurance agreements and a decrease in
expense from modeling annuity amortization periods at the individual policy level.
68