Ameriprise 2013 Annual Report Download - page 72

Consolidated Results of Operations
Year Ended December 31, 2013 Compared to Year Ended December 31, 2012
The following table presents our consolidated results of operations:
Years Ended
December 31,
2013 2012 Change
(in millions)
Revenues
Management and financial advice fees $ 5,253 $ 4,692 $ 561 12%
Distribution fees 1,771 1,616 155 10
Net investment income 1,889 1,933 (44) (2)
Premiums 1,282 1,223 59 5
Other revenues 1,035 795 240 30
Total revenues 11,230 10,259 971 9
Banking and deposit interest expense 31 42 (11) (26)
Total net revenues 11,199 10,217 982 10
Expenses
Distribution expenses 3,036 2,698 338 13
Interest credited to fixed accounts 806 831 (25) (3)
Benefits, claims, losses and settlement expenses 1,954 1,899 55 3
Amortization of deferred acquisition costs 207 286 (79) (28)
Interest and debt expense 281 276 5 2
General and administrative expense 2,945 2,989 (44) (1)
Total expenses 9,229 8,979 250 3
Income from continuing operations before income tax provision 1,970 1,238 732 59
Income tax provision 492 335 157 47
Income from continuing operations 1,478 903 575 64
Loss from discontinued operations, net of tax (3) (2) (1) (50)
Net income 1,475 901 574 64
Less: Net income (loss) attributable to noncontrolling interests 141 (128) 269 NM
Net income attributable to Ameriprise Financial $ 1,334 $ 1,029 $ 305 30%
NM Not Meaningful.
Overall
Income from continuing operations before income tax provision increased $732 million, or 59%, to $2.0 billion for the year
ended December 31, 2013 compared to $1.2 billion for the prior year primarily reflecting the impact from unlocking and
model changes, the impact of market appreciation and wrap account net inflows, the market impact on variable annuity
guaranteed benefits (net of hedges and the related DSIC and DAC amortization), an increase in net income attributable to
noncontrolling interests, a $30 million gain on the sale of Threadneedle’s strategic business investment in Cofunds in the
second quarter of 2013 and a $24 million benefit from policyholder movement of investments in Portfolio Navigator funds
under certain in-force variable annuities with living benefit guarantees to the managed volatility funds, partially offset by the
negative impact from spread compression in our interest sensitive product lines and asset management net outflows. The
market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC and DAC amortization) was an
expense of $170 million for the year ended December 31, 2013, which included a $17 million benefit associated with
unlocking. This compares to an expense of $265 million for the prior year, which included a $14 million expense
associated with unlocking and model changes. The negative impact on earnings from spread compression in our interest
sensitive product lines was approximately $136 million pretax for the year ended December 31, 2013 compared to the
prior year.
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