Ameriprise 2013 Annual Report Download - page 86

General and administrative expense decreased $25 million, or 11%, to $199 million for the year ended December 31,
2013 compared to $224 million for the prior year primarily due to decreases in investment spending, advertising costs,
service delivery charges and professional services fees. In addition, we recognized a net $6 million charge in the prior year
for estimated future assessments from state insurance guaranty funds, primarily associated with the liquidation of
Executive Life Insurance Company of New York.
Protection
Our Protection segment offers a variety of products to address the protection and risk management needs of our retail
clients including life, disability income and property-casualty insurance. Life and disability income products are primarily
provided through our advisors. Our property-casualty products are sold primarily through affinity relationships. We issue
insurance policies through our life insurance subsidiaries and the Property Casualty companies. 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 also receive
fees based on the level of assets supporting VUL separate account balances. This segment earns intersegment revenues
from fees paid by our Asset Management segment for marketing support and other services provided in connection with
the availability of VIT Funds under the VUL contracts. Intersegment expenses for this segment include distribution expenses
for services provided by our Advice & Wealth Management segment, as well as expenses for investment management
services provided by our Asset Management segment.
The following table presents the results of operations of our Protection segment on an operating basis:
Years Ended
December 31,
2013 2012 Change
(in millions)
Revenues
Management and financial advice fees $ 58 $ 55 $ 3 5%
Distribution fees 91 91 — —
Net investment income 443 430 13 3
Premiums 1,188 1,121 67 6
Other revenues 410 392 18 5
Total revenues 2,190 2,089 101 5
Banking and deposit interest expense — 1 (1) —
Total net revenues 2,190 2,088 102 5
Expenses
Distribution expenses 77 67 10 15
Interest credited to fixed accounts 145 143 2 1
Benefits, claims, losses and settlement expenses 1,252 1,146 106 9
Amortization of deferred acquisition costs 118 110 8 7
General and administrative expense 233 224 9 4
Total expenses 1,825 1,690 135 8
Operating earnings $ 365 $ 398 $ (33) (8)%
Our Protection segment pretax operating income, which excludes net realized gains or losses and the market impact on
indexed universal life benefits (net of hedges and the related DAC amortization, unearned revenue amortization and the
reinsurance accrual), decreased $33 million, or 8%, to $365 million for the year ended December 31, 2013 compared to
$398 million for the prior year reflecting lower auto and home earnings.
Net Revenues
Net revenues, which exclude net realized gains or losses and the unearned revenue amortization and the reinsurance
accrual offset to the market impact on indexed universal life benefits, increased $102 million, or 5%, to $2.2 billion for
the year ended December 31, 2013 compared to $2.1 billion for the prior year primarily due to the impact of unlocking
and growth in auto and home premiums, as well as an increase in net investment income.
Net investment income, which excludes net realized gains or losses, increased $13 million, or 3%, to $443 million for the
year ended December 31, 2013 compared to $430 million for the prior year due to an increase in investment income on
fixed maturities driven by higher average invested assets for life and health.
Premiums increased $67 million, or 6%, to $1.2 billion for the year ended December 31, 2013 compared to $1.1 billion
for the prior year primarily due to growth in auto and home premiums driven by continued strong new policy sales growth
across market segments, primarily from our affinity relationships with Costco and Progressive. Auto and home policy counts
increased 11% year-over-year.
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