Ameriprise 2012 Annual Report Download - page 84

Expenses
Total expenses increased $7 million to $1.7 billion for the year ended December 31, 2012 compared to the prior year.
Benefits, claims, losses and settlement expenses increased $8 million, or 1%, to $1.1 billion for the year ended
December 31, 2012 compared to the prior year due to higher expenses related to our auto and home business, partially
offset by a $14 million benefit from unlocking and model changes in 2012 primarily due to favorable mortality experience
compared to a $4 million benefit in the prior year, as well as a $9 million benefit from a life insurance reserve release in
2012. Benefits, claims, losses and settlement expenses related to our auto and home business increased $28 million
compared to the prior year primarily due to premium growth, as well as higher catastrophe losses. Auto and home
catastrophe losses in 2012 were $55 million, including $20 million from Superstorm Sandy, compared to $45 million in
2011.
Amortization of DAC decreased $9 million, or 8%, to $110 million for the year ended December 31, 2012 compared to
$119 million for the prior year due to a $14 million benefit from unlocking and model changes in 2012 primarily due to
lowered mortality assumption compared to a $1 million benefit in the prior year.
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, which are excluded on an operating basis.
The following table presents the results of operations of our Corporate & Other segment on an operating basis:
Years Ended
December 31,
2012 2011 Change
(in millions)
Revenues
Management and financial advice fees $ (1) $ (1) $ — —
Distribution fees 1—1NM
Net investment income (loss) 9 (27) 36 NM
Other revenues 10 30 (20) (67)%
Total revenues 19 2 17 NM
Banking and deposit interest expense (1) (1) — —
Total net revenues 20 3 17 NM
Expenses
Distribution expenses — 1 (1) NM
Interest and debt expense 94 95 (1) (1)
General and administrative expense 196 148 48 32
Total expenses 290 244 46 19
Operating loss $ (270) $ (241) $ (29) (12)%
NM Not Meaningful.
Our Corporate & Other segment pretax operating loss excludes net realized gains or losses, the impact of consolidating
CIEs and restructuring charges. Our Corporate & Other segment pretax operating loss was $270 million for the year ended
December 31, 2012 compared to $241 million for the prior year.
Net revenues, which exclude revenues or losses of CIEs, net realized gains or losses and restructuring charges, increased
$17 million to $20 million for the year ended December 31, 2012 compared to $3 million for the prior year. Net
investment income, which excludes net investment income or loss of the CIEs, net realized gains or losses and
restructuring charges, was $9 million for the year ended December 31, 2012 compared to a loss of $27 million for the
prior year primarily reflecting a volume-driven increase in interest income and $7 million of lower losses on our affordable
housing partnerships. Other revenues decreased $20 million, or 67%, to $10 million for the year ended December 31,
2012 compared to $30 million for the prior year due to a $27 million gain on an interest rate hedge put in place in
anticipation of issuing debt that was reclassified from accumulated other comprehensive income into earnings in 2011.
Total expenses, which exclude expenses of CIEs and restructuring charges, increased $46 million, or 19%, to $290 million
for the year ended December 31, 2012 compared to $244 million for the prior year due to an increase in general and
administrative expense driven by higher severance expense, compensation related accruals and investment spending,
partially offset by a $15 million benefit from a settlement with a third-party service provider.
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