Ameriprise 2011 Annual Report Download - page 97

Protection
The following table presents the results of operations of our Protection segment:
Years Ended December 31,
2010 2009
Less: Less: Operating
GAAP Adjustments(1) Operating GAAP Adjustments(1) Operating Change
(in millions)
Revenues
Management and financial advice fees $ 54 $ — $ 54 $ 47 $ — $ 47 $ 7 15%
Distribution fees 96 — 96 97 — 97 (1) (1)
Net investment income 429 1 428 422 27 395 33 8
Premiums 1,047 — 1,047 1,013 — 1,013 34 3
Other revenues 422 — 422 386 — 386 36 9
Total revenues 2,048 1 2,047 1,965 27 1,938 109 6
Banking and deposit interest expense 1 — 1 1 — 1 — —
Total net revenues 2,047 1 2,046 1,964 27 1,937 109 6
Expenses
Distribution expenses 32 — 32 22 — 22 10 45
Interest credited to fixed accounts 147 — 147 144 — 144 3 2
Benefits, claims, losses and
settlement expenses 1,059 — 1,059 916 — 916 143 16
Amortization of deferred acquisition
costs 183 — 183 159 — 159 24 15
General and administrative expense 223 — 223 226 — 226 (3) (1)
Total expenses 1,644 — 1,644 1,467 — 1,467 177 12
Pretax income $ 403 $ 1 $ 402 $ 497 $ 27 $ 470 $ (68) (14)%
(1) Adjustments include net realized gains or losses.
Our Protection segment pretax income was $403 million for the year ended December 31, 2010, a decrease of
$94 million, or 19%, from $497 million for the prior year. Our Protection segment pretax operating income, which excludes
net realized gains or losses, was $402 million for the year ended December 31, 2010, a decrease of $68 million, or 14%,
from $470 million for the prior year.
Net Revenues
Net revenues increased $83 million, or 4%, to $2.0 billion for the year ended December 31, 2010 compared to
$2.0 billion for the prior year. Operating net revenues, which exclude net realized gains or losses, increased $109 million,
or 6%, to $2.0 billion for the year ended December 31, 2010 compared to $1.9 billion for the prior year primarily due to
the impact of updating valuation assumptions and model changes and an increase in net investment income and
premiums.
Management and financial advice fees increased $7 million, or 15%, to $54 million for the year ended December 31,
2010 compared to $47 million for the prior year primarily due to higher management fees from VUL separate account
growth due to market appreciation.
Net investment income increased $7 million, or 2%, to $429 million for the year ended December 31, 2010 compared to
$422 million for the prior year. Operating net investment income, which excludes net realized gains or losses, increased
$33 million, or 8%, to $428 million for the year ended December 31, 2010 compared to $395 million for the prior year
primarily due to higher investment yields and increased general account assets.
Premiums increased $34 million, or 3%, to $1.0 billion for the year ended December 31, 2010 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 9% period-over-period.
Other revenues increased $36 million, or 9%, to $422 million for the year ended December 31, 2010 compared to
$386 million for the prior year primarily due to updating valuation assumptions and model changes. Other revenues in
2010 included a charge of $20 million from updating valuation assumptions and model changes compared to a charge of
$65 million in the prior year.
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