Ameriprise 2011 Annual Report Download - page 83

Our Protection segment pretax income decreased $33 million, or 8%, to $370 million for the year ended December 31,
2011, compared to $403 million for the prior year. Our Protection segment pretax operating income, which excludes net
realized gains or losses, decreased $35 million, or 9%, to $367 million for the year ended December 31, 2011, compared
to $402 million for the prior year primarily due to higher claims and general and administrative expenses partially offset by
higher premiums.
Net Revenues
Net revenues increased $25 million, or 1%, to $2.1 billion for the year ended December 31, 2011 compared to
$2.0 billion for the prior year. Operating net revenues, which exclude net realized gains or losses, increased $23 million, or
1%, to $2.1 billion for the year ended December 31, 2011 compared to $2.0 billion for the prior year due to Auto and
Home premium growth.
Premiums increased $29 million, or 3%, to $1.1 billion for the year ended December 31, 2011 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 7% period-over-period.
Expenses
Total expenses increased $58 million, or 4%, to $1.7 billion for the year ended December 31, 2011 compared to
$1.6 billion for the prior year due to increases in benefits, claims, losses and settlement expenses, amortization of DAC
and general and administrative expense.
Benefits, claims, losses and settlement expenses increased $26 million, or 2%, to $1.1 billion for the year ended
December 31, 2011 compared to $1.1 billion for the prior year. Benefits, claims, losses and settlement expenses in 2011
included a benefit of $4 million from updating valuation assumptions and models compared to an expense of $44 million
in the prior year. Benefits, claims, losses and settlement expenses related to our Auto and Home business increased from
the prior year primarily due to $45 million of catastrophe losses in 2011 compared to $29 million in 2010, as well as
higher auto liability reserves. In addition, benefits, claims, losses and settlement expenses increased as a result of higher
UL claims and an increase in ongoing reserve levels for UL products with secondary guarantees compared to the prior year.
Amortization of DAC increased $18 million, or 10%, to $201 million for the year ended December 31, 2011 compared to
$183 million for the prior year. Amortization of DAC in 2011 included a benefit of $2 million from updating valuation
assumptions and models compared to a benefit of $22 million in the prior year. Amortization of DAC in 2010 included a
benefit of $6 million as a result of the implementation of changes to the Portfolio Navigator program. The market impact
on amortization of DAC was an expense of $2 million in 2011 compared to a benefit of $10 million in the prior year,
which was partially offset by a decrease in DAC amortization as a result of better persistency and lower current period
profits due to higher direct claims.
Corporate & Other
Our Corporate & Other segment consists of net investment income or loss on corporate level assets, including excess
capital held in our subsidiaries and other unallocated equity and other revenues 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 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.
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