Ameriprise 2011 Annual Report Download - page 94

Download and view the complete annual report

Please find page 94 of the 2011 Ameriprise annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 200

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200

Our Asset Management segment pretax income was $318 million for the year ended December 31, 2010 compared to
$60 million for the prior year. Our Asset Management segment pretax operating income, which excludes net realized gains
or losses and integration charges, was $410 million for the year ended December 31, 2010 compared to $93 million for
the prior year reflecting eight months of earnings from business acquired in the Columbia Management Acquisition and
market appreciation. Pretax margin for 2010 was 13.4% and operating pretax margin was 17.3%.
Net Revenues
Net revenues increased $1.0 billion, or 76%, to $2.4 billion for the year ended December 31, 2010 compared to
$1.3 billion for the prior year driven by an increase in asset-based management fees and distribution fees due to growth in
assets from the Columbia Management Acquisition and market appreciation.
Management and financial advice fees increased $873 million, or 79%, to $2.0 billion for the year ended December 31,
2010 compared to $1.1 billion for the prior year primarily due to growth in assets from the Columbia Management
Acquisition and market appreciation, partially offset by lower hedge fund performance fees. The daily average S&P 500
Index increased 20% compared to the prior year. Total Asset Management managed assets increased $213.7 billion, or
88%, to $456.8 billion at December 31, 2010 compared to the prior year primarily due to the Columbia Management
Acquisition and market appreciation, partially offset by net outflows.
Distribution fees increased $142 million, or 66%, to $358 million for the year ended December 31, 2010 compared to
$216 million for the prior year primarily driven by growth in assets from the Columbia Management Acquisition and market
appreciation.
Expenses
Total expenses increased $764 million, or 59%, to $2.1 billion for the year ended December 31, 2010 compared to
$1.3 billion for the prior year. Operating expenses, which exclude integration charges, increased $699 million, or 56%, to
$2.0 billion for the year ended December 31, 2010 compared to $1.3 billion for the prior year due to an increase in
distribution expenses and general and administrative expense. We realized integration gross expense synergies related to
the Columbia Management Acquisition of approximately $75 million for the year ended December 31, 2010.
Distribution expenses increased $363 million, or 98%, to $734 million for the year ended December 31, 2010 compared
to $371 million for the prior year primarily due to growth in assets from the Columbia Management Acquisition and market
appreciation.
General and administrative expense increased $402 million, or 45%, to $1.3 billion for the year ended December 31,
2010 compared to $894 million for the prior year. Integration charges increased $65 million to $95 million in 2010
compared to $30 million in the prior year. Operating general and administrative expense, which excludes integration
charges, increased $337 million, or 39%, to $1.2 billion for the year ended December 31, 2010 compared to
$864 million for the prior year primarily due to increased operating costs of Columbia Management, as well as higher
performance based compensation partially offset by lower legal expenses and lower hedge fund performance
compensation.
79