Ameriprise 2012 Annual Report Download

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Annual Report 2012

Table of contents

  • Page 1
    Annual Report 2012

  • Page 2
    ... Common stock shares repurchased 24.6 27.9 13.1 This Annual Report to Shareholders contains certain non-GAAP financial measures that management believes best reflect the underlying performance of our operations. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP...

  • Page 3
    ...to invest in our company and, as always, remaining steadfast in serving our clients. We are a diversified financial services firm with a deep heritage in financial planning and advice and leadership positions in advisory, asset management, annuities and protection. We take a long-term, comprehensive...

  • Page 4
    ... capital • Strong ratings • high-quality investment portfolio • Effective risk management • Strong liquidity levels and flexibility 70% $1,456 $1,340 23% 2008 2009 2010 2011 2012 $614 $573 Percent of operating earnings returned to shareholders 2008 2009 $0 2010 2011 2012...

  • Page 5
    ... core client base, record client asset and advisor productivity levels, as well as steady improvement in the earnings and profitability of our advisory business. 2008 $344 2009 $429 2010 Assets under management and administration in billions Ameriprise Financial Annual Report 2012 2011 $631

  • Page 6
    ...capital across our firm with our financial strength and risk management prowess to build product solutions that help to protect wealth, preserve assets and guarantee retirement income. 2008 2009 2010 2011 Operating net revenue per advisor in thousands 4 Ameriprise Financial Annual Report 2012...

  • Page 7
    ... toward a confident retirement Ameriprise Financial recognizes the growing need for personalized retirement planning services. Our Confident Retirement® approach offers a framework for advisors and clients to create retirement plans that provide income for a lifetime. it's an example of how...

  • Page 8
    ... our targeted risk and return profile - balancing client benefits with appropriate shareholder returns. We also recently enhanced our life insurance portfolio with our new indexed universal life insurance product and reinvigorated our variable universal life insurance product line. While sales have...

  • Page 9
    ... business led the way, as investors gained confidence midway through the year, generating net inflows. in addition, our core institutional Through Columbia Management and Threadneedle Investments, Ameriprise ranks among the world's largest asset managers. Ameriprise Financial Annual Report 2012...

  • Page 10
    ... markets increase our asset base, continued low interest rates mute the earnings power of our spread businesses in the near term. And market volatility and investor concerns over fiscal policy dampen client activity. As we serve an increasingly affluent client base and broaden our distribution reach...

  • Page 11
    ... Ameriprise Bank from a federal savings bank to a non-deposit taking national trust company. With regard to our consolidated financials, our continued focus on expense management and commitment to reengineering helped to offset significant interest rate pressure. On an operating basis in 2012, net...

  • Page 12
    ...Financial and Columbia management employees partner to help sort food at the Greater Boston Food Bank. A commitment to community Ameriprise is a strong company because of our people. We are committed to fostering a culture of service. This work is underway year round through a platform of strategic...

  • Page 13
    ... Ameriprise represents a compelling investment opportunity. We have a clear strategy and a record of delivering for our clients, advisors and shareholders. As we execute our plans in 2013, we will continue to work to mitigate economic and market headwinds. The market opportunity before us is large...

  • Page 14
    ... York, by RiverSource Life insurance Co. of New York, Albany, NY, and distributed by RiverSource distributors, inc. Auto and home insurance is underwritten by Ameriprise insurance Company. Personal trust services are offered through Ameriprise National Trust Bank. Brokerage, investment and financial...

  • Page 15
    Ameriprise Financial, Inc. 2012 Form 10-K

  • Page 16
    ...) 1099 Ameriprise Financial Center, Minneapolis, Minnesota (Address of principal executive offices) Registrant's telephone number, including area code: (612) 671-3131 Securities registered pursuant to Section 12(b) of the Act: Title of each class Common Stock (par value $.01 per share) Securities...

  • Page 17
    ... of Equity Securities ...Selected Financial Data ...Management's Discussion and Analysis of Financial Condition and Results of Operations ...Quantitative and Qualitative Disclosures About Market Risk ...Financial Statements and Supplementary Data ...Changes in and Disagreements With Accountants on...

  • Page 18
    ...are centered on the long-term, personal relationships between our clients and our financial advisors and registered representatives (our ''advisors''). Through our advisors, we offer financial planning, products and services designed to be used as solutions for our clients' cash and liquidity, asset...

  • Page 19
    ... the Ameriprise Financial brand include those that we provide through our advisors (e.g., financial planning, investment advisory accounts and retail brokerage services) and products and services that we market directly to consumers or through affinity groups (e.g., personal auto and home insurance...

  • Page 20
    ...Columbia Management Investment Distributors, Inc. American Enterprise Investment Services Inc. RiverSource Life Insurance Company IDS Property Casualty Insurance Company Ameriprise Certificate Company Ameriprise Trust Company Ameriprise National Trust Bank RiverSource Life Insurance Co. of New...

  • Page 21
    ... Life. We refer to RiverSource Life and RiverSource Life of NY as the ''RiverSource Life companies.'' IDS Property Casualty Insurance Company (''IDS Property Casualty'' or ''Ameriprise Auto & Home'') provides personal auto, home and excess liability insurance products. Ameriprise Insurance Company...

  • Page 22
    ... to invest in and enhance the public awareness of the Ameriprise Financial brand and the performance of our advisors. In 2012, we continued to build upon our award-winning advertising campaign focused on our MORE WITHIN REACHá"¼ brand platform, which highlights the Company's rich history, financial...

  • Page 23
    ... variety of securities, and use self-directed asset allocation and other financial planning tools. We also offer shares in public non-exchange traded Real Estate Investment Trusts, structured notes and other alternative investments issued by unaffiliated companies. Through Ameriprise Achiever Circle...

  • Page 24
    ... or credit-origination activities. In 2012, all checking, savings and money market accounts and certificates of deposit were liquidated and returned to our clients, Ameriprise Bank's consumer loan portfolio, including first mortgages, home equity loans, home equity lines of credit and loans, was...

  • Page 25
    ... products. The certificates compete with investments offered by banks, savings and loan associations, credit unions, mutual funds, insurance companies and similar financial institutions. In times of weak performance in the equity markets, certificate sales are generally stronger. In 2012, advisors...

  • Page 26
    ...our Columbia Management family of mutual funds, as well as the assets we manage for institutional clients in separately managed accounts, collective funds, hedge funds, the general and separate accounts of the RiverSource Life companies, the assets of IDS Property Casualty and Ameriprise Certificate...

  • Page 27
    ... Ameriprise financial advisor network and as part of Ameriprise institutional 401(k) plans. Variable product funds are available as underlying investment options in variable annuity and variable life insurance products, including RiverSource products. The Columbia Management family of funds includes...

  • Page 28
    ... strategies. We receive fees for investment management services that are generally based upon a percentage of assets under management. In addition to Columbia Management funds and RiverSource Trust Collective Funds, ATC offers separately managed accounts and collective funds to our retirement plan...

  • Page 29
    ... banks, life insurance companies, independent financial advisers, wealth managers and platforms offering a variety of investment products. Our Segments - Annuities Our Annuities segment provides RiverSource variable and fixed annuity products to individual clients. The RiverSource Life companies...

  • Page 30
    ... (see ''Business - Our Segments - Asset Management - Columbia Management - Mutual Funds,'' above) as well as variable portfolio funds of other companies. RiverSource variable annuity products in force offer a fixed account investment option with guaranteed minimum interest crediting rates ranging up...

  • Page 31
    ...below under ''Ameriprise Auto & Home Insurance Products''). The primary sources of revenues for this segment are premiums, fees and charges we receive to assume insurance-related risk. We earn net investment income on owned assets supporting insurance reserves and capital supporting the business. We...

  • Page 32
    ... of funds, as well as variable portfolio funds of other companies. RiverSource variable universal life insurance products in force offer a fixed account investment option with guaranteed minimum interest crediting rates ranging from 2.0% to 4.5% at December 31, 2012. Fixed Universal Life Insurance...

  • Page 33
    ... represented 51% of all new policy sales of our Property Casualty companies in 2012. Through other alliances, we market our property casualty products to customers of Ford Motor Credit Company and offer personal home insurance products to customers of the Progressive Group. Termination of one or...

  • Page 34
    ... corporate expenses. Competition We operate in a highly competitive global industry. As a diversified financial services firm, we compete directly with a variety of financial institutions, including registered investment advisors, securities brokers, asset managers, banks and insurance companies...

  • Page 35
    ... manage individual brokerage, mutual fund and insurance accounts. Over the years we have updated our platform to include new product lines such as brokerage, deposit, credit and products of other companies, wrap accounts and e-commerce capabilities for our financial advisors and clients. We also use...

  • Page 36
    ... a registered investment company, Ameriprise Certificate Company must observe certain governance, disclosure, record-keeping, operational and marketing requirements. Investment companies are required by the SEC to adopt and implement written policies and procedures designed to prevent violations of...

  • Page 37
    ...retail distribution review, the FSA adopted new rules, which became effective on December 31, 2012, that govern the manner in which retail clients pay for investment advice provided with respect to retail investment products, including open-ended and closed-ended funds and structured products. There...

  • Page 38
    ...22 to our Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K for additional information regarding guaranty association assessments. Certain variable annuity and variable life insurance policies offered by the RiverSource Life companies constitute and are...

  • Page 39
    ... applicable to financial holding companies. Parent Company Regulation Ameriprise Financial is a publicly traded company that is subject to SEC and New York Stock Exchange (''NYSE'') rules and regulations regarding public disclosure, financial reporting, internal controls and corporate governance...

  • Page 40
    ... and client activity. Downturns and volatility in equity markets can have, and have had, an adverse effect on the revenues and returns from our asset management services, wrap accounts and variable annuity contracts. Because the profitability of these products and services depends on fees related...

  • Page 41
    ...way customers allocate capital among money market, equity, fixed maturity or other investment alternatives, which could negatively impact our Asset Management, Advice & Wealth Management and Annuities businesses. If we are unable to offer appropriate product alternatives which encourage customers to...

  • Page 42
    ... products have guaranteed minimum crediting rates. Due to the long-term nature of the liabilities associated with certain of our businesses, such as long term care and fixed universal life with secondary guarantees as well as fixed annuities and guaranteed benefits on variable annuities, sustained...

  • Page 43
    ...performance, product offerings and features, price, perceived financial strength, claims-paying ability and credit ratings. Our competitors include broker-dealers, banks, asset managers, insurers and other financial institutions. Many of our businesses face competitors that have greater market share...

  • Page 44
    ... products and services, or the financial industry in general, may increase the number of withdrawals and redemptions or reduce purchases made by our clients, which would adversely impact the levels of our assets under management, revenues and liquidity position. A drop in investment performance...

  • Page 45
    ... results of operations or financial condition. Fixed maturity, equity, trading securities and short-term investments, which are reported at fair value on the consolidated balance sheets, represent the majority of our total cash and invested assets. The determination of fair values by management in...

  • Page 46
    ...be increased by capital market volatility. If our reserves for future policy benefits and claims or for future certificate redemptions and maturities are inadequate, we may be required to increase our reserve liabilities, which would adversely affect our results of operations and financial condition...

  • Page 47
    ... direct to the acquisition of new or renewal business, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of annuity, life and disability income insurance and, to a lesser extent, marketing and promotional expenses for personal auto...

  • Page 48
    For more information regarding DAC, see Part II, Item 7 of this Annual Report on Form 10-K under the heading ''Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies - Deferred Acquisition Costs and Deferred Sales Inducement Costs'' and ...

  • Page 49
    ... financial markets of increasingly sophisticated products, such as those which incorporate automatic asset re-allocation, long/short trading strategies or multiple portfolios or funds, and business-driven hedging, compliance and other risk management or investment or financial management strategies...

  • Page 50
    ... operations. Insurance, banking and securities laws and regulations regulate the ability of many of our subsidiaries (such as our insurance and brokerage subsidiaries and our face-amount certificate company) to pay dividends or make other permitted payments. See Item 1 of this Annual Report on Form...

  • Page 51
    ... and financial advisors from performing their roles or otherwise disturbing our ordinary business operations and by impacting insurance claims, as described below. Such disasters and catastrophes may also impact us indirectly by changing the condition and behaviors of our customers, business...

  • Page 52
    ... of the financial services industry designed to provide for greater oversight of financial industry participants, reduce risk in banking practices and in securities and derivatives trading, enhance public company corporate governance practices and executive compensation disclosures, and provide...

  • Page 53
    ...Frank Act or other new regulation of the financial services industry impacts the operations, financial condition, liquidity and capital requirements of unaffiliated financial institutions with whom we transact business, those institutions may seek to pass on increased costs, reduce their capacity to...

  • Page 54
    ... and securities and insurance rating agency processes and standards applicable to our businesses and the financial services industry; and changes in general economic or market conditions. Stock markets in general have experienced volatility that has often been unrelated to the operating performance...

  • Page 55
    ... mutual funds, annuities, equity and fixed income securities, low priced securities, insurance products, brokerage services and financial advice offerings; front office systems and controls; supervision of the Company's financial advisors; and company procedures and information security. The Company...

  • Page 56
    ... proprietary mutual funds with allegedly poor performance histories, higher expenses relative to other investment options and improper fees paid to Ameriprise Financial or its subsidiaries. The action also alleges that the Company breached fiduciary duties under ERISA because it used its affiliate...

  • Page 57
    ... of Operations - Liquidity and Capital Resources'' contained in Part II, Item 7 of this Annual Report on Form 10-K. Share Repurchases The following table presents the information with respect to purchases made by or on behalf of Ameriprise Financial, Inc. or any ''affiliated purchaser'' (as defined...

  • Page 58
    ... adoption of new accounting rules on deferred acquisition costs. In addition, certain reclassifications of prior year amounts have been made to conform to the current presentation. On April 30, 2010, we acquired the long-term asset management business of Columbia Management Group. Results presented...

  • Page 59
    ...are centered on the long-term, personal relationships between our clients and our financial advisors and registered representatives (our ''advisors''). Through our advisors, we offer financial planning, products and services designed to be used as solutions for our clients' cash and liquidity, asset...

  • Page 60
    ... on the asset management and other asset-based fees we earn, the ''spread'' income generated on our annuities, deposit products and universal life (''UL'') insurance products, the value of DAC and deferred sales inducement costs (''DSIC'') assets, the values of liabilities for guaranteed benefits...

  • Page 61
    ... the related general and administrative expenses are eliminated and the changes in the assets and liabilities related to the CIEs, primarily debt and underlying syndicated loans, are reflected in net investment income. We continue to include the fees in the management and financial advice fees line...

  • Page 62
    ... charges, net of tax(1) Add: Market impact on variable annuity guaranteed living benefits, net of tax(1) Less: Net realized gains, net of tax(1) Operating earnings Weighted average common shares outstanding: Basic Diluted (1) Calculated using the statutory tax rate of 35%. 2011 Per Diluted Share...

  • Page 63
    ... policy or annuity contract are expensed as incurred. For our annuity and life, disability income and long term care insurance products, our DAC and DSIC balances at any reporting date are supported by projections that show management expects there to be adequate premiums or estimated gross profits...

  • Page 64
    ... Operations. For annuity and life, disability income and long term care insurance products, key assumptions underlying these long-term projections include interest rates (both earning rates on invested assets and rates credited to contractholder and policyholder accounts), equity market performance...

  • Page 65
    ... benefits and claims related to life, disability income and long term care insurance include liabilities for fixed account values on fixed and variable universal life policies, liabilities for indexed accounts of indexed universal life (''IUL'') products, liabilities for unpaid amounts on reported...

  • Page 66
    ...it is reported. Liabilities for estimates of benefits that will become payable on future claims on term life, whole life, disability income and long term care policies are based on the net level premium method, using anticipated premium payments, mortality and morbidity rates, policy persistency and...

  • Page 67
    variability of cash flows to be received or paid related to a recognized asset or liability (''cash flow hedges'') or (iii) hedges of foreign currency exposures of net investments in foreign operations (''net investment hedges in foreign operations''). Our accounting policy is to not offset fair ...

  • Page 68
    ... our wrap accounts, as well as surrender charges on fixed and variable universal life insurance and annuities. Net Investment Income Net investment income primarily includes interest income on fixed maturity securities classified as Available-for-Sale, mortgage loans, policy and certificate loans...

  • Page 69
    ... to the premium-paying period. For certain mutual fund products, DAC are generally amortized over fixed periods on a straight-line basis adjusted for redemptions. See ''Deferred Acquisition Costs and Deferred Sales Inducement Costs'' under ''Critical Accounting Policies'' for further information on...

  • Page 70
    ...Ended December 31, 2012 Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts Benefits, claims, losses and...

  • Page 71
    ... of DAC Interest credited to fixed accounts Total expenses Total(1) (1) 2012 $ 2011 (in millions) (41) $ (20) (28) (40) 23 38 2 - (3) (2) $ (18) (38) $ Includes $14 million and $4 million of expense related to the market impact on variable annuity guaranteed living benefits for the years...

  • Page 72
    ... equity and bond fund returns in 2012 compared to unfavorable equity markets in 2011. Amortization of DAC decreased $111 million, or 28%, compared to the prior year primarily due to the DAC offset to the market impact on variable annuity guaranteed living benefits (net of hedges and the related...

  • Page 73
    ...the Asset Management segment. In addition to purchases of affiliated and non-affiliated mutual funds and other securities on a stand-alone basis, clients may purchase mutual funds, among other securities, in connection with investment advisory fee-based ''wrap account'' programs or services, and pay...

  • Page 74
    ... powers national trust bank. In 2012, all checking, savings and money market accounts and certificates of deposit were liquidated and returned to our clients, Ameriprise Bank's consumer loan portfolio, including first mortgages, home equity loans, home equity lines of credit and unsecured loans, was...

  • Page 75
    ...-party financial institutions and unaffiliated financial advisors. Individual products include mutual funds, exchange-traded funds and variable product funds underlying insurance and annuity separate accounts. Institutional asset management services are designed to meet specific client objectives...

  • Page 76
    ...5 year Percent of funds with 4 or 5 Morningstar star ratings Percent of assets with 4 or 5 Morningstar star ratings Mutual fund performance rankings are based on the performance of Class Z fund shares for Columbia branded mutual funds. In instances where a fund's Class Z shares do not have a full...

  • Page 77
    ...funds that invest in both equity and fixed income. Aggregated Threadneedle data includes funds on the Threadneedle platform sub-advised by Columbia as well as advisors not affiliated with Ameriprise Financial, Inc. The following table presents the ending balances and average managed assets: Average...

  • Page 78
    ... the changes in Columbia and Threadneedle managed assets: Years Ended December 31, 2012 Columbia Managed Assets Rollforward Retail Funds Beginning assets Mutual fund inflows Mutual fund outflows Net VP/VIT fund flows Net new flows Reinvested dividends Net flows Distributions Market appreciation...

  • Page 79
    ...increased $11.5 billion, or 6%, in 2012 due to market appreciation, partially offset by net outflows. Columbia retail fund net outflows of $9.4 billion in 2012 included $4.2 billion of previously announced outflows in former parent company portfolios, $2.1 billion of outflows in New York 529 program...

  • Page 80
    ...operating basis: Years Ended December 31, 2012 Revenues Management and financial advice fees Distribution fees Net investment income Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Amortization of deferred acquisition costs General...

  • Page 81
    ...on an operating basis: Years Ended December 31, 2012 Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts...

  • Page 82
    ... low interest rates impacting both the variable and fixed businesses and $37 million of additional bond discount accretion investment income recognized in 2011 related to prior periods resulting from revisions to the accounting classification of certain structured securities. Premiums decreased $43...

  • Page 83
    ...on an operating basis: Years Ended December 31, 2012 Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts...

  • Page 84
    ...on an operating basis: Years Ended December 31, 2012 Revenues Management and financial advice fees Distribution fees Net investment income (loss) Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest and debt expense General and...

  • Page 85
    ...due to the Columbia Management Acquisition, net inflows in wrap account assets and market appreciation, partially offset by the negative impact of the low interest rate environment and higher general and administrative expense. The market impact on variable annuity guaranteed living benefits (net of...

  • Page 86
    ... from net outflows in certificates driven by the low interest rate environment and lower investments in annuity general account assets due to the implementation of changes to the Portfolio Navigator program in the second quarter of 2010 and lower interest sensitive fixed annuity account balances...

  • Page 87
    ...million in 2010 primarily related to changes in policyholder surrender assumptions. The market impact on variable annuity guaranteed living benefits (net of hedges and the related DSIC amortization) was an increase to benefits, claims, losses and settlement expenses of $67 million in 2011, including...

  • Page 88
    ... changes: Years Ended December 31, 2011 Segment Pretax Operating Increase (Decrease) Other revenues Benefits, claims, losses and settlement expenses Amortization of DAC Interest credited to fixed accounts Total expenses Total $ Annuities $ - (40) 39 - (1) 1 $ Protection $ 2010 Annuities Protection...

  • Page 89
    ... operating basis: Years Ended December 31, 2011 Revenues Management and financial advice fees Distribution fees Net investment income Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses General and administrative expense Total expenses...

  • Page 90
    ... Total managed asset net flows NM Not Meaningful. $ (16.7) 10.6 (0.8) $ (6.9) 2010 (in billions) $ (13.5) (0.5) (0.1) $ (14.1) $ Change (3.2) 11.1 (0.7) 7.2 (24)% NM NM 51% $ The following table presents managed assets by type: December 31, 2011 Equity Fixed income Money market Alternative Hybrid...

  • Page 91
    ... Net flows Acquisitions Market appreciation (depreciation) and other(2) Total ending assets Alternative Beginning assets Inflows Outflows Net flows Market appreciation (depreciation) and other Total ending assets Affiliated General Account Assets Other and Eliminations Total Columbia managed assets...

  • Page 92
    ... to manage its insurance and pension fund portfolio. Average AUM increased $87.6 billion, or 24%, in 2011 compared to 2010 primarily due to the Columbia Management Acquisition, as well as market appreciation, partially offset by net outflows. The average S&P 500 Index increased 11% in 2011 compared...

  • Page 93
    ...operating basis: Years Ended December 31, 2011 Revenues Management and financial advice fees Distribution fees Net investment income Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Amortization of deferred acquisition costs General...

  • Page 94
    ...on an operating basis: Years Ended December 31, 2011 Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts...

  • Page 95
    ... 31, 2011 compared to the prior year due to outflows. Fixed annuities remained in net outflows due to low client demand given existing interest rates. Benefits, claims, losses and settlement expenses, which exclude the market impact on variable annuity guaranteed living benefits (net of hedges...

  • Page 96
    ...on an operating basis: Years Ended December 31, 2011 Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts...

  • Page 97
    ... an operating basis: Years Ended December 31, 2011 Revenues Management and financial advice fees Net investment loss Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest and debt expense General and administrative expense Total...

  • Page 98
    ... impairment should be recognized. The following table presents, as of December 31, 2012, our non-agency residential mortgage backed securities backed by sub-prime, Alt-A or prime mortgage loans by credit rating and vintage year: AAA Amortized Cost Sub-prime 2003 & prior 2004 2005 2006 2007 2008...

  • Page 99
    ...-dealer subsidiary, American Enterprise Investment Services, Inc. (''AEIS''), our Auto and Home insurance subsidiary, IDS Property Casualty Insurance Company (''IDS Property Casualty''), doing business as Ameriprise Auto & Home Insurance, our transfer agent subsidiary, Columbia Management Investment...

  • Page 100
    ...RiverSource Life(1)(2) RiverSource Life of NY(1)(2) IDS Property Casualty(1)(3) Ameriprise Insurance Company(1)(3) ACC(4)(5) Threadneedle(6) Ameriprise Bank, FSB(7) AFSI(3)(4) Ameriprise Captive Insurance Company(3) Ameriprise Trust Company(3) AEIS(3)(4) RiverSource Distributors, Inc.(3)(4) Columbia...

  • Page 101
    ... 31: 2012 RiverSource Life(1) Ameriprise Bank, FSB(2) ACC Columbia Management Investment Advisers, LLC Threadneedle Ameriprise Trust Company Securities America Financial Corporation(3) IDS Property Casualty Ameriprise Holdings, Inc. Ameriprise Advisor Capital, LLC RiverSource Distributors, Inc...

  • Page 102
    ... accounts for the benefit of brokerage customers. Investing Activities Our investing activities primarily relate to our Available-for-Sale investment portfolio. Further, this activity is significantly affected by the net flows of our investment certificate, fixed annuity and universal life products...

  • Page 103
    ... transfers to separate accounts of $1.3 billion primarily due to the implementation of changes to the Portfolio Navigator program. Net cash outflows related to investment certificates and banking time deposits decreased $472 million due to lower maturities, withdrawals and cash surrenders compared...

  • Page 104
    ...acquisition integration, general and administrative costs, consolidated tax rate, return of capital to shareholders, and excess capital position and financial flexibility to capture additional growth opportunities; other statements about future economic performance, the performance of equity markets...

  • Page 105
    ... management and other asset-based fees we earn, the spread income generated on our annuities, brokerage client cash balances and face amount certificate products and UL insurance products, the value of DAC and DSIC assets, the value of liabilities for guaranteed benefits associated with our variable...

  • Page 106
    ... Basis Points Asset-based management and distribution fees(1) Variable annuity riders: GMWB GMAB DAC and DSIC amortization(4) Total variable annuity riders Fixed annuities, fixed portion of variable annuities and fixed insurance products Brokerage client cash balances Certificates Indexed universal...

  • Page 107
    ... The variable annuity guaranteed benefits guarantee payouts to the annuity holder under certain specific conditions regardless of the performance of the investment assets. For this reason, when equity prices decline, the returns from the separate account assets coupled with guaranteed benefit fees...

  • Page 108
    ... account portion of annuity and insurance products of RiverSource Life companies and their investment portfolios. We guarantee an interest rate to the holders of these products. Premiums and deposits collected from clients are primarily invested in fixed rate securities to fund the client credited...

  • Page 109
    ... investment strategy and make modifications based on our changing liabilities and the expected interest rate environment. Of the $6.5 billion in customer deposits at December 31, 2012, $2.8 billion related to reserves for our fixed rate certificate products. Stock Market Certificates Stock market...

  • Page 110
    ... during the terms of the treaties. As of December 31, 2012, our largest reinsurance credit risk is related to a long term care coinsurance treaty with life insurance subsidiaries of Genworth Financial, Inc. See Note 7 to our Consolidated Financial Statements for additional information on reinsurance...

  • Page 111
    ... Financial Statements: Ameriprise Financial, Inc. Reports of Independent Registered Public Accounting Firms ...Consolidated Statements of Operations - Years ended December 31, 2012, 2011 and 2010 ...Consolidated Statements of Comprehensive Income - Years ended December 31, 2012, 2011 and 2010...

  • Page 112
    ... that our audits provide a reasonable basis for our opinions. As discussed in Note 1 to the consolidated financial statements, the Company changed the manner in which it accounts for deferred acquisition costs in 2012. A company's internal control over financial reporting is a process designed to...

  • Page 113
    ... adopted new accounting guidance related to the deferral of acquisition costs for insurance and annuity products. The accompanying 2010 financial statements have been retrospectively adjusted. 27FEB200923311029 Minneapolis, Minnesota February 28, 2011; except for Note 24 (Discontinued Operations...

  • Page 114
    ...Ended December 31, 2012 Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts Benefits, claims, losses and...

  • Page 115
    ... plans: Prior service credit Net loss arising during the period Total defined benefit plans Total other comprehensive income, net of tax Total comprehensive income Less: Comprehensive income (loss) attributable to noncontrolling interests Comprehensive income attributable to Ameriprise Financial...

  • Page 116
    ... acquisition costs Restricted and segregated cash and investments Other assets Other assets of consolidated investment entities, at fair value Total assets Liabilities and Equity Liabilities: Future policy benefits and claims Separate account liabilities Customer deposits Short-term borrowings Long...

  • Page 117
    ...Paid-In Retained Investment Treasury Comprehensive Shareholders' controlling Shares Shares Capital Earnings Entities Shares Income Equity Interests (in millions, except share data) Total Balances at January 1, 2010, previously reported 255,095,491 Cumulative effect of change in accounting policies...

  • Page 118
    ... investment entities Purchase of land, buildings, equipment and software Acquisitions Proceeds from sale of business Change in consumer loans, net Other, net Net cash provided by (used in) investing activities Cash Flows from Financing Activities Investment certificates and banking time deposits...

  • Page 119
    ... Financial Statements 1. Basis of Presentation Ameriprise Financial, Inc. is a holding company, which primarily conducts business through its subsidiaries to provide financial planning, products and services that are designed to be utilized as solutions for clients' cash and liquidity, asset...

  • Page 120
    ...statement line items for prior periods retrospectively adjusted: Year Ended December 31, 2011 Previously Reported Revenues Total net revenues Expenses Distribution expenses Interest credited to fixed accounts Benefits, claims, losses and settlement expenses Amortization of deferred acquisition costs...

  • Page 121
    ..., 2011 Previously Reported Assets Deferred acquisition costs Other assets Total assets Liabilities and Equity Liabilities: Future policy benefits and claims Other liabilities Total liabilities Equity: Retained earnings Accumulated other comprehensive income, net of tax Total equity Total liabilities...

  • Page 122
    ... and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. Cash and Cash Equivalents Cash equivalents include time deposits and other highly liquid investments with original maturities of 90 days or less. Investments Available-for-Sale...

  • Page 123
    ... longer engaged in credit-origination activities. In 2012, Ameriprise Bank's consumer loan portfolio, including first mortgages, home equity loans, home equity lines of credit and unsecured loans were sold to affiliates of Ameriprise Bank and Ameriprise Bank's credit card account portfolio was sold...

  • Page 124
    ... margin loans. When originated, policy and certificate loan balances do not exceed the cash surrender value of the underlying products. As there is minimal risk of loss related to policy and certificate loans, the Company does not record an allowance for loan losses. The Company's broker dealer...

  • Page 125
    ...separate account assets are offset by changes in the related separate account liabilities. The Company receives investment management fees, mortality and expense risk fees, guarantee fees and cost of insurance charges from the related accounts. Included in separate account liabilities are investment...

  • Page 126
    ... operations is recognized in net investment income during the period of change. The equity component of equity indexed annuity (''EIA''), indexed universal life (''IUL'') and stock market certificate obligations are considered embedded derivatives. Additionally, certain annuities contain guaranteed...

  • Page 127
    ... Statements of Operations. For annuity, life and health insurance products, key assumptions underlying those long-term projections include interest rates (both earning rates on invested assets and rates credited to contractholder and policyholder accounts), equity market performance, mortality...

  • Page 128
    ... The Company also assumes life insurance and fixed annuity risk from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms...

  • Page 129
    .... Liabilities for indexed accounts of IUL products are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options. A portion of the Company's fixed and variable universal life policies have product features that result in profits...

  • Page 130
    ... and insurance products. Principal sources of revenue include management and financial advice fees, distribution fees, net investment income and premiums. Management and Financial Advice Fees Management and financial advice fees relate primarily to fees earned from managing mutual funds, separate...

  • Page 131
    ... Company's wrap accounts, as well as surrender charges on fixed and variable universal life insurance and annuities. Net Investment Income Net investment income primarily includes interest income on fixed maturity securities classified as Available-for-Sale, mortgage loans, policy and certificate...

  • Page 132
    ... the Company's consolidated results of operations and financial condition. Balance Sheet In December 2011, the FASB updated the accounting standards to require new disclosures about offsetting assets and liabilities. The standard requires an entity to disclose both gross and net information about...

  • Page 133
    ... value on a recurring basis: December 31, 2012 Level 1 Assets Investments: Corporate debt securities Common stocks Other structured investments Syndicated loans Total investments Receivables Other assets Total assets at fair value Liabilities Debt Other liabilities Total liabilities at fair value...

  • Page 134
    ... of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: Corporate Debt Securities Balance, January 1, 2012 Total gains (losses) included in: Net income Other comprehensive income Purchases Sales Issues Settlements Transfers...

  • Page 135
    ... income Purchases, sales, issues and settlements, net Transfers into Level 3 Balance, December 31, 2010 Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2010 (1) (2) Common Stocks $ - - 4(1) - - 7 $ 11 Other Structured Investments (in...

  • Page 136
    ... current occupancy, historical vacancy rates, tenant history and assumptions regarding how quickly the property can be occupied and at what rental rates. Management reviews the valuation report and assumptions used to ensure that the valuation was performed in accordance with applicable independence...

  • Page 137
    ... from syndicated loans, bonds and structured investments is recorded based on contractual rates in net investment income. Gains and losses related to changes in the fair value of investments and gains and losses on sales of investments are also recorded in net investment income. Interest expense on...

  • Page 138
    ...$ 17 309 104 675 967 3,216 5,288 $ 5. Investments The following is a summary of Ameriprise Financial investments: December 31, 2012 Available-for-Sale securities, at fair value Mortgage loans, net Policy and certificate loans Other investments Total $ 2011 (in millions) 31,472 $ 34,505 3,609 3,727...

  • Page 139
    ... equity. The decrease in the fair value of AAA rated securities compared to the prior year was primarily due to sales and maturities, of which approximately $2.5 billion related to the sale of Ameriprise Bank's investment portfolio. The following tables provide information about Available-for-Sale...

  • Page 140
    ... part of Ameriprise Financial's ongoing monitoring process, management determined that a majority of the gross unrealized losses on its Available-for-Sale securities are attributable to movement in credit spreads primarily related to non-agency residential mortgage backed securities purchased prior...

  • Page 141
    ... impairments for the years ended December 31, 2012, 2011 and 2010 primarily related to credit losses on non-agency residential mortgage backed securities. Available-for-Sale securities by contractual maturity at December 31, 2012 were as follows: Amortized Cost Due Due Due Due within one year after...

  • Page 142
    ... receivables include commercial mortgage loans, syndicated loans, consumer loans, policy loans, certificate loans and margin loans. See Note 2 for information regarding the Company's accounting policies related to loans and the allowance for loan losses. Allowance for Loan Losses The following...

  • Page 143
    ... premiums and discounts, and net unamortized deferred fees and costs are not material to the Company's total loan balance. Purchases and sales of loans were as follows: Years Ended December 31, 2012 Purchases Consumer loans Syndicated loans Total loans purchased Sales Consumer loans Syndicated loans...

  • Page 144
    ... 31, 2012 17% 1 18 2 24 33 5 100% 2011 15% 2 18 2 26 32 5 100% Syndicated Loans The Company's syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the...

  • Page 145
    ... 90% of the death benefit liability related to almost all individual fixed and variable universal life and term life insurance products. As a result, the Company typically retains and is at risk for, at most, 10% of each policy's death benefit from the first dollar of coverage for new sales of these...

  • Page 146
    ...$ 44 38 31 25 21 9. Deferred Acquisition Costs and Deferred Sales Inducement Costs The Company retrospectively adopted a new accounting standard for DAC in the first quarter of 2012. See Note 1 for the effect of the change on affected financial statement line items for prior periods retrospectively...

  • Page 147
    ...fixed sub-accounts Variable annuity GMWB Variable annuity GMAB Other variable annuity guarantees Total annuities VUL/UL insurance IUL accumulated host values IUL embedded derivatives VUL/UL insurance additional liabilities Other life, DI and LTC insurance Auto, home and other insurance Policy claims...

  • Page 148
    ...annuity deposits in fixed rate securities and hedges the equity risk with derivative instruments. See Note 15 for additional information regarding the Company's derivative instruments. In 2007, the Company discontinued new sales of equity indexed annuities. Variable Annuities Purchasers of variable...

  • Page 149
    ... asset allocation models. Credits are applied annually for a specified number of years to increase the guaranteed amount as long as withdrawals have not been taken. Variable annuity contractholders age 79 or younger at contract issue can also obtain a principal-back guarantee by purchasing...

  • Page 150
    ... The liabilities for guaranteed benefits are supported by general account assets. The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: December 31, 2012 (in millions) Mutual funds: Equity Bond Other...

  • Page 151
    ... trust bank now known as Ameriprise National Trust Bank. As a result of the conversion, Ameriprise National Trust Bank is no longer engaged in deposit-taking activities. In 2012, all checking, savings and money market accounts and certificates of deposit were liquidated and returned to clients...

  • Page 152
    ... capital adequacy, net income or shareholders' equity levels. As of December 31, 2012 and 2011, the Company had met the specified levels. The Company's junior subordinated notes due 2066 and credit facility contain various administrative, reporting, legal and financial covenants. The Company...

  • Page 153
    ...-term borrowings is a weighted average annualized interest rate on repurchase agreements held as of the balance sheet date. On November 22, 2011, the Company entered into a credit agreement for $500 million expiring on November 22, 2015. Under the terms of the agreement, the Company may increase...

  • Page 154
    ...for-Sale securities Trading securities Separate account assets Other assets: Interest rate derivative contracts Equity derivative contracts Foreign currency derivative contracts Commodity derivative contracts Total other assets Total assets at fair value Liabilities Future policy benefits and claims...

  • Page 155
    ... Foreign government bonds and obligations Common stocks Other debt obligations Total Available-for-Sale securities Trading securities Separate account assets Investments segregated for regulatory purposes Other assets: Interest rate derivative contracts Equity derivative contracts Credit derivative...

  • Page 156
    ... changes in Level 3 assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: Available-for-Sale Securities Corporate Debt Securities Balance, January 1, 2012 Total gains (losses) included in: Net income Other comprehensive income Purchases Sales Issues Settlements...

  • Page 157
    ... Corporate Debt Securities Balance, January 1, 2010 Total gains included in: Net income Other comprehensive income Purchases, sales, issues and settlements, net Transfers into Level 3 Transfers out of Level 3 Balance, December 31, 2010 Changes in unrealized gains (losses) relating to assets...

  • Page 158
    ... fair value hierarchy. Assets Cash Equivalents Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their net asset value (''NAV'') and classified as Level 1. The Company's remaining cash equivalents are...

  • Page 159
    ... 31, 2012 and 2011. See Note 15 for further information on the credit risk of derivative instruments and related collateral. Liabilities Future Policy Benefits and Claims The Company values the embedded derivative liability attributable to the provisions of certain variable annuity riders using...

  • Page 160
    ...Value Financial Assets Mortgage loans, net Policy and certificate loans Receivables Restricted and segregated cash Other investments and assets Financial Liabilities Future policy benefits and claims Investment certificate reserves Banking and brokerage customer deposits Separate account liabilities...

  • Page 161
    ...transfer and lack of liquidity in the primary market for these assets. Future Policy Benefits and Claims The fair value of fixed annuities, in deferral status, is determined by discounting cash flows using a risk neutral discount rate with adjustments for profit margin, expense margin, early policy...

  • Page 162
    ...master netting agreements and cash and securities collateral Fair value of exchange-traded derivatives Total fair value of derivatives after application of master netting agreements and cash and securities collateral $ Net Derivative Liabilities December 31, 2011 Net Derivative Assets Net Derivative...

  • Page 163
    ... Stock market certificates embedded derivatives Ameriprise Financial Franchise Advisor Deferred Compensation Plan Seed money Foreign exchange Foreign currency Commodity Seed money Total other Total non-designated hedges Total derivatives N/A Not applicable. (1) Other Other Other Other N/A assets...

  • Page 164
    ...: Interest rate Bank assets Tax hedge Interest rate lock commitments Equity GMDB IUL IUL embedded derivatives EIA EIA embedded derivatives Stock market certificates Stock market certificates embedded derivatives Seed money Ameriprise Financial Franchise Advisor Deferred Compensation Plan Foreign...

  • Page 165
    ...and 2011, respectively. In 2010, the Company entered into a total return swap to economically hedge its exposure to equity price risk of Ameriprise Financial, Inc. common stock granted as part of its Ameriprise Financial Franchise Advisor Deferred Compensation Plan (''Franchise Advisor Deferral Plan...

  • Page 166
    ... expense 2012 $ 37 2011 (in millions) $ 41 2010 $ 36 Derivatives designated as hedging instruments Fixed rate debt Credit Risk Credit risk associated with the Company's derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative...

  • Page 167
    ... Advisor Deferral Plan, the Ameriprise Advisor Group Deferred Compensation Plan (''Advisor Group Deferral Plan'') and the Threadneedle Equity Incentive Plan. The components of the Company's share-based compensation expense, net of forfeitures, were as follows: Years Ended December 31, 2012 Stock...

  • Page 168
    ... length of service. Compensation expense for restricted stock awards is based on the market price of Ameriprise Financial stock on the date of grant and is amortized on a straight-line basis over the vesting period. Quarterly dividends are paid on restricted stock, as declared by the Company's Board...

  • Page 169
    ... awards generally vest ratably over three to four years. Compensation expense for deferred share units and restricted stock units is based on the market price of Ameriprise Financial stock on the date of grant. Restricted stock units granted to employees are amortized on a straight-line basis over...

  • Page 170
    ... in cash and/or shares of the Company's common stock according to the award's terms. As of December 31, 2012, there were approximately 0.3 million units outstanding under the Advisor Group Deferral Plan, of which nil were fully vested. Threadneedle Equity Incentive Plan On an annual basis, certain...

  • Page 171
    ... swap used to economically hedge its Franchise Advisor Deferral Plan. See Note 15 for additional information. 18. Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders The Company retrospectively adopted a new accounting standard for DAC in the first quarter of 2012. See...

  • Page 172
    ... for asset managers. The Company has four broker-dealer subsidiaries, American Enterprise Investment Services Inc., Ameriprise Financial Services, Inc., RiverSource Distributors, Inc. and Columbia Management Investment Distributors, Inc. The broker-dealers are subject to the net capital requirements...

  • Page 173
    ... of tax related to securities lending activities, partially offset by increased tax credits and the impact of the out-of-period correction related to the Company's deferred tax balance review. The increase in the Company's effective tax rate in 2011 compared to 2010 primarily reflects the change in...

  • Page 174
    ... Investment related Deferred compensation Loss carryovers and tax credit carryforwards Other Gross deferred income tax assets Less: valuation allowance Total deferred income tax assets Deferred income tax liabilities Deferred acquisition costs Investment related Deferred sales inducement costs Net...

  • Page 175
    ... Net income tax provision $ 238 4 (9) 7 240 2011 (in millions) $ 90 (15) (28) (1) $ 46 $ 2010 191 8 (2) (6) 191 $ $ 21. Retirement Plans and Profit Sharing Arrangements Defined Benefit Plans Pension Plans The Company's U.S. non-advisor employees are generally eligible for the Ameriprise Financial...

  • Page 176
    ... in the Consolidated Balance Sheets, which equal the funded status of the Company's pension plans: December 31, 2012 Benefit liability Benefit asset Net amount recognized $ $ (in millions) (214) $ 8 (206) $ 2011 (189) 5 (184) The Company complies with the minimum funding requirements in all...

  • Page 177
    ... Company also considered historical returns on the plans' assets. Discount rates are based on yields available on high-quality corporate bonds that would generate cash flows necessary to pay the benefits when due. The Company's pension plans' assets are invested in an aggregate diversified portfolio...

  • Page 178
    ... 31, 2011 Asset Category Equity securities: U.S. large cap stocks U.S. small cap stocks Non-U.S. large cap stocks Emerging markets Debt securities: U.S. investment grade bonds U.S. high yield bonds Non-U.S. investment grade bonds Real estate investment trusts Hedge funds Pooled pension funds Cash...

  • Page 179
    ... rates Healthcare cost increase rates: Following year Decreasing to the year 2016 3.40% 6.50 5.00 2011 4.15% 7.00 5.00 Discount rates are based on yields available on high-quality corporate bonds that would generate cash flows necessary to pay the benefits when due. A one percentage-point change...

  • Page 180
    ... mortgage loan commitments Consumer lines of credit Affordable housing partnerships Total funding commitments $ (in millions) 76 $ 627 5 144 852 $ 2011 19 730 1,685 267 2,701 $ Guarantees The Company's life and annuity products all have minimum interest rate guarantees in their fixed accounts...

  • Page 181
    ... mutual funds, annuities, equity and fixed income securities, low priced securities, insurance products, brokerage services and financial advice offerings; front office systems and controls; supervision of the Company's financial advisors; and company procedures and information security. The Company...

  • Page 182
    ... poor performance histories, higher expenses relative to other investment options and improper fees paid to Ameriprise Financial or its subsidiaries. The action also alleges that the Company breached fiduciary duties under ERISA because it used its affiliate Ameriprise Trust Company as the Plan...

  • Page 183
    ... and returned to clients, Ameriprise Bank's consumer loan portfolio was sold to affiliates of Ameriprise Bank and Ameriprise Bank's credit card account portfolio was sold to Barclays. The Asset Management segment provides investment advice and investment products to retail, high net worth and...

  • Page 184
    ... and interest credited on the fixed account balances. The Company also earns net investment income on owned assets supporting reserves for immediate annuities and for certain guaranteed benefits offered with variable annuities and on capital supporting the business. Intersegment revenues for this...

  • Page 185
    ..., Ameriprise Bank, FSB, to a limited powers national trust bank. The following tables summarize selected financial information by segment and reconcile segment totals to those reported on the consolidated financial statements: December 31, 2012 Advice & Wealth Management Asset Management Annuities...

  • Page 186
    ... Financial Data (Unaudited) The 2011 quarterly results of operations and earnings per share attributable to Ameriprise Financial, Inc. common shareholders have been recast due to the Company's adoption of the new accounting standard for DAC as discussed in Note 1 and Note 3. 2012 12/31 Net revenues...

  • Page 187
    ... Officer and Chief Financial Officer, assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2012. In making this assessment, the Company's management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission...

  • Page 188
    ...Senior Vice President and General Manager of Banking, Brokerage and Managed Products of AEFC since April 2002. Prior thereto, he served as Senior Vice President and Head, Business Transformation, Global Financial Services of American Express from March 2001 until April 2002. Mr. Sweeney is currently...

  • Page 189
    ... for the Group President, Global Financial Services at American Express. John R. Woerner - President - Insurance & Annuities and Chief Strategy Officer Mr. Woerner (43) has been our President - Insurance and Annuities and Chief Strategy Officer since September 2012. Prior to that time, he served...

  • Page 190
    ... - Share-Based Compensation to our Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K. The non-shareholder approved plans consist of the Ameriprise Financial 2008 Employment Incentive Equity Award Plan, the Ameriprise Advisor Group Deferred Compensation Plan and...

  • Page 191
    ... information set forth under the heading ''Items to be Voted on by Shareholders - Item 3 - Ratification of Audit Committee's Selection of Independent Registered Public Accountants for 2013 - Independent Registered Public Accountant Fees''; '' - Services to Associated Organizations''; and '' - Policy...

  • Page 192
    ... and stead, to sign and affix the undersigned's name as such director and/or officer of said corporation to an Annual Report on Form 10-K or other applicable form, and all amendments thereto, to be filed by such corporation with the Securities and Exchange Commission, Washington, D.C., under the...

  • Page 193
    Date: February 26, 2013 By /s/ Warren D. Knowlton Warren D. Knowlton Director Date: February 26, 2013 By /s/ W. Walker Lewis W. Walker Lewis Director Date: February 26, 2013 By /s/ Siri S. Marshall Siri S. Marshall Director Date: February 26, 2013 By /s/ Jeffrey Noddle Jeffrey Noddle Director...

  • Page 194
    ... in conjunction with the related consolidated financial statements. As discussed in Note 1 to the consolidated financial statements, the Company's subsidiaries changed the manner in which they account for deferred acquisition costs in 2012. 24FEB201210190713 Minneapolis, Minnesota February 26, 2013...

  • Page 195
    ... 1 to the financial statement schedule, certain 2010 amounts have been retrospectively adjusted for the adoption of new accounting guidance related to the deferral of acquisition costs for insurance and annuity products. 27FEB200923311029 Minneapolis, Minnesota February 28, 2011; except for Note...

  • Page 196
    Schedule I - Condensed Financial Information of Registrant (Parent Company Only) Table of Contents Condensed Statements of Operations ...Condensed Balance Sheets ...Condensed Statements of Cash Flows ...Notes to Condensed Financial Information of Registrant ...F-4 F-5 F-6 F-7 F-3

  • Page 197
    ... Financial Information of Registrant Condensed Statements of Operations (Parent Company Only) Years Ended December 31, 2012 Revenues Management and financial advice fees Distribution fees Net investment income Other revenues Total revenues Banking and deposit interest expense Total net revenues...

  • Page 198
    ...- Condensed Financial Information of Registrant Condensed Balance Sheets (Parent Company Only) December 31, 2012 2011 (in millions, except share data) Assets Cash and cash equivalents Investments Loans to subsidiaries Due from subsidiaries Receivables Land, buildings, equipment, and software, net of...

  • Page 199
    ... of stock options Excess tax benefits from share-based compensation Other, net Net cash used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Supplemental Disclosures: Interest paid on...

  • Page 200
    ... the new accounting standard for deferred acquisition costs for insurance and annuity products. The financial information of the Parent Company should be read in conjunction with the Consolidated Financial Statements and Notes of Ameriprise Financial. Parent Company revenues and expenses, other...

  • Page 201
    ...2, 2011). Ameriprise Financial Form of Award Certificate - Performance Cash Unit Plan Award (incorporated by reference to Exhibit 10.2 of the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 2, 2011). Ameriprise Financial Performance Share Unit Plan Supplement to the Long-Term Incentive...

  • Page 202
    ...Form S-8, File No. 333-156075, filed on December 11, 2008). Ameriprise Advisor Group Deferred Compensation Plan, as amended and restated effective January 1, 2012. Credit Agreement, dated as of November 22, 2011, among Ameriprise Financial, Inc., the lenders party thereto, Wells Fargo Bank, National...

  • Page 203
    ... The following graph compares the cumulative five-year total return for shareholders of Ameriprise Financial, inc. common stock with the cumulative total returns of the S&P 500 index and the S&P Financials index. The graph tracks the performance of a $100 investment in our common stock and in each...

  • Page 204
    ... 3900 New York, NY 10007 Information Available to Shareholders Copies of our company's Annual Report on Form 10-K, proxy statement, press releases and other documents, as well as information on financial results and products and services, are available through the Ameriprise Financial website at...

  • Page 205
    ... Business development and Chief Operating Officer Deirdre D. McGraw Executive vice President Corporate Communications and Community Relations Kim M. Sharan President Financial Planning and Wealth Strategies and Chief marketing Officer Joseph E. Sweeney President Advice & Wealth management Products...

  • Page 206
    © 2013 Ameriprise Financial, inc. All rights reserved. 400425 J (2/13)