Ameriprise 2010 Annual Report Download - page 92

Management and financial advice fees increased $27 million, or 3%, to $1.1 billion for the year ended December 31,
2009, due to strong hedge fund performance and net inflows, partially offset by a 22% decline in the daily average
S&P 500 Index on a period-over-period basis, as well as the negative impact of foreign currency translation. Total Asset
Management account assets increased $43.6 billion, or 22%, compared to the prior year due to market appreciation, as
well as net inflows in International managed assets and the positive impact of changes in foreign currency exchange rates.
Distribution fees decreased $31 million, or 13%, to $216 million for the year ended December 31, 2009, primarily due to
lower 12b-1 fees driven by lower average assets.
Net investment income was $18 million for the year ended December 31, 2009 compared to net investment loss of
$13 million in the prior year. Operating net investment income, which excludes net realized gains or losses, was
$21 million for the year ended December 31, 2009 compared to operating net investment loss of $14 million for the prior
year primarily due to losses related to mark-to-market adjustments on seed money investments in 2008.
Other revenues decreased $25 million, or 76%, to $8 million for the year ended December 31, 2009, due to revenue
from the sale of certain operating assets in 2008.
Expenses
Total expenses increased $25 million, or 2%, to $1.3 billion for the year ended December 31, 2009, primarily due to an
increase in general and administrative expense partially offset by a decrease in distribution expenses.
Distribution expenses decreased $46 million, or 11%, to $371 million for the year ended December 31, 2009, primarily
due to lower average assets.
General and administrative expense increased $74 million, or 9%, to $894 million for the year ended December 31,
2009. Integration charges were $30 million for the year ended December 31, 2009 compared to $5 million for the prior
year. Operating general and administrative expense, which excludes integration charges, increased $49 million, or 6%, to
$864 million for the year ended December 31, 2009, primarily due to ongoing expenses from our acquisition of Seligman
in the fourth quarter of 2008 and increases in hedge fund performance compensation, our performance compensation
pool and legal expenses, partially offset by expense controls and a positive impact of foreign currency translation. The
positive impact of foreign currency translation on general and administrative expense partially offset the negative impact of
foreign currency translation on management and financial advice fees.
Annuities
The following table presents the results of operations of our Annuities segment:
Years Ended December 31,
2009 2008
Less: Less:
GAAP Adjustments(1) Operating GAAP Adjustments(1) Operating Operating Change
(in millions, except percentages)
Revenues
Management and financial advice
fees $ 438 $ — $ 438 $ 478 $ — $ 478 $ (40) (8)%
Distribution fees 247 — 247 275 — 275 (28) (10)
Net investment income 1,323 44 1,279 652 (350) 1,002 277 28
Premiums 104 — 104 85 — 85 19 22
Other revenues 153 — 153 128 — 128 25 20
Total revenues 2,265 44 2,221 1,618 (350) 1,968 253 13
Banking and deposit interest
expense — — — — — — — —
Total net revenues 2,265 44 2,221 1,618 (350) 1,968 253 13
Expenses
Distribution expenses 211 — 211 207 — 207 4 2
Interest credited to fixed accounts 759 — 759 646 — 646 113 17
Benefits, claims, losses and
settlement expenses 418 — 418 269 — 269 149 55
Amortization of deferred acquisition
costs 37 — 37 576 — 576 (539) (94)
General and administrative expense 192 — 192 207 — 207 (15) (7)
Total expenses 1,617 — 1,617 1,905 — 1,905 (288) (15)%
Pretax income (loss) $ 648 $ 44 $ 604 $ (287) $ (350) $ 63 $ 541 NM
NM Not Meaningful.
(1) Adjustments include net realized gains or losses.
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