Ameriprise 2012 Annual Report Download - page 73
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The following table presents summary financial information by segment:
Years Ended
December 31,
2012 2011
(in millions)
Advice & Wealth Management
Net revenues $ 3,873 $ 3,713
Expenses 3,430 3,307
Operating earnings $ 443 $ 406
Asset Management
Net revenues $ 2,891 $ 2,897
Expenses 2,334 2,369
Operating earnings $ 557 $ 528
Annuities
Net revenues $ 2,524 $ 2,630
Expenses 1,957 2,005
Operating earnings $ 567 $ 625
Protection
Net revenues $ 2,088 $ 2,069
Expenses 1,690 1,683
Operating earnings $ 398 $ 386
Corporate & Other
Net revenues $20$ 3
Expenses 290 244
Operating loss $ (270) $ (241)
The following table presents the segment pretax operating impacts on our revenues and expenses attributable to unlocking
and model changes:
Years Ended December 31,
2012 2011
Segment Pretax Operating Increase (Decrease) Annuities Protection Annuities Protection
(in millions)
Other revenues $ — $ (41) $ — $ (20)
Benefits, claims, losses and settlement expenses (32) (14) (40) (4)
Amortization of DAC 41 (14) 39 (1)
Interest credited to fixed accounts 2 — — —
Total expenses 11 (28) (1) (5)
Total $ (11) $ (13) $ 1 $ (15)
The operating impact of unlocking and model changes for 2012 included a $43 million benefit, net of DAC and DSIC
amortization, from an adjustment to the model which values the reserves related to living benefit guarantees primarily
attributable to prior periods.
Advice & Wealth Management
Our Advice & Wealth Management segment provides financial planning and advice, as well as full-service brokerage
services, primarily to retail clients through our advisors. Our advisors have access to a diversified selection of both affiliated
and non-affiliated products to help clients meet their financial needs. A significant portion of revenues in this segment is
fee-based, driven by the level of client assets, which is impacted by both market movements and net asset flows. We also
earn net investment income on invested assets primarily from certificate products. This segment earns revenues
(distribution fees) for distributing non-affiliated products and earns intersegment revenues (distribution fees) for distributing
our affiliated products and services to our retail clients. Intersegment expenses for this segment include expenses for
investment management services provided by 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 fees based on a percentage of their assets.
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