Ameriprise 2010 Annual Report Download - page 94

General and administrative expense decreased $15 million, or 7%, to $192 million for the year ended December 31,
2009, primarily due to expense controls.
Protection
The following table presents the results of operations of our Protection 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 $ 47 $ — $ 47 $ 56 $ — $ 56 $ (9) (16)%
Distribution fees 97 — 97 106 — 106 (9) (8)
Net investment income 422 27 395 252 (92) 344 51 15
Premiums 1,020 — 1,020 994 — 994 26 3
Other revenues 386 — 386 547 — 547 (161) (29)
Total revenues 1,972 27 1,945 1,955 (92) 2,047 (102) (5)
Banking and deposit interest
expense 1 — 1 1 — 1 — —
Total net revenues 1,971 27 1,944 1,954 (92) 2,046 (102) (5)
Expenses
Distribution expenses 22 — 22 18 — 18 4 22
Interest credited to fixed accounts 144 — 144 144 — 144 — —
Benefits, claims, losses and
settlement expenses 924 — 924 856 — 856 68 8
Amortization of deferred acquisition
costs 159 — 159 333 — 333 (174) (52)
General and administrative expense 226 — 226 251 — 251 (25) (10)
Total expenses 1,475 — 1,475 1,602 — 1,602 (127) (8)
Pretax income $ 496 $ 27 $ 469 $ 352 $ (92) $ 444 $ 25 6%
(1) Adjustments include net realized gains or losses.
Our Protection segment pretax income was $496 million for the year ended December 31, 2009, an increase of
$144 million, or 41%, from $352 million in the prior year. Our Protection segment pretax operating income, which
excludes net realized gains or losses, was $469 million for the year ended December 31, 2009 compared to $444 million
in the prior year.
Net revenues
Net revenues increased $17 million, or 1%, to $2.0 billion for the year ended December 31, 2009. Operating net
revenues, which exclude net realized gains or losses, decreased $102 million, or 5%, to $1.9 billion for the year ended
December 31, 2009, due to a decrease in other revenues related to updating valuation assumptions, partially offset by an
increase in net investment income and premiums.
Net investment income increased $170 million, or 67%, to $422 million for the year ended December 31, 2009. Net
realized investment gains were $27 million in 2009 compared to net realized investment losses of $92 million in 2008
primarily related to impairments of Available-for-Sale securities. Operating net investment income, which excludes net
realized gains or losses, increased $51 million, or 15%, to $395 million for the year ended December 31, 2009, primarily
due to an increase in investment income earned on fixed maturity securities driven by higher yields on the longer-term
investments in our fixed income investment portfolio.
Premiums increased $26 million, or 3%, to $1.0 billion for the year ended December 31, 2009, due to growth in Auto
and Home premiums compared to the prior year driven by higher volumes. Auto and Home policy counts increased 9%
period-over-period.
Other revenues decreased $161 million, or 29%, to $386 million for the year ended December 31, 2009, due to a
$65 million expense from updating valuation assumptions in 2009 compared to a $95 million benefit from updating
valuation assumptions and converting to a new valuation system for RiverSource Life products in 2008.
Expenses
Total expenses decreased $127 million, or 8%, to $1.5 billion for the year ended December 31, 2009, primarily due to
the impact of updating valuation assumptions.
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