Ameriprise 2013 Annual Report Download - page 87

Other revenues increased $18 million, or 5%, to $410 million for the year ended December 31, 2013 compared to
$392 million for the prior year primarily due to an $18 million unfavorable impact from unlocking for the year ended
December 31, 2013 compared to a $41 million unfavorable impact in the prior year. The primary driver of the unlocking
impact to other revenues in both periods was lower projected gains on reinsurance contracts resulting from favorable
mortality experience.
Expenses
Total expenses, which exclude the market impact on indexed universal life benefits (net of hedges and the related DAC
amortization), increased $135 million, or 8%, to $1.8 billion for the year ended December 31, 2013 compared to
$1.7 billion for the prior year primarily due to an increase in benefits, claims, losses and settlement expenses.
Distribution expenses increased $10 million, or 15%, to $77 million for the year ended December 31, 2013 compared to
$67 million for the prior year driven by higher compensation related to higher sales.
Benefits, claims, losses and settlement expenses, which exclude the market impact on indexed universal life benefits (net
of hedges), increased $106 million, or 9%, to $1.3 billion for the year ended December 31, 2013 compared to
$1.1 billion for the prior year due to the impact of unlocking, higher expenses related to our auto and home business, an
$8 million increase in disability income reserves in the second quarter of 2013 related to prior periods and a $9 million
benefit from a life insurance reserve release in the prior year. The increase in expenses related to our auto and home
business was driven by higher claim and claim adjustment expense reflecting the impact of growth in exposures due to a
29% increase in gross new policies and higher loss cost trends, partially offset by lower catastrophe losses. Auto and
home catastrophe losses were $42 million in 2013 compared to $51 million in the prior year, including $20 million from
Superstorm Sandy. Benefits, claims, losses and settlement expenses for the year ended December 31, 2013 included a
$4 million benefit from unlocking compared to a $14 million benefit in the prior year. The primary driver of the unlocking
impact in both periods was favorable mortality experience.
Amortization of DAC increased $8 million, or 7%, to $118 million for the year ended December 31, 2013 compared to
$110 million for the prior year due to the impact of unlocking. The impact of unlocking was a $3 million benefit for the
year ended December 31, 2013 compared to a $14 million benefit in the prior year. The primary driver of the unlocking
impact in both periods was a lower mortality assumption.
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,
2013 2012 Change
(in millions)
Revenues
Management and financial advice fees $ — $ (1) $ 1 NM
Distribution fees 11— —%
Net investment income (loss) (18) 9 (27) NM
Other revenues 6 10 (4) (40)
Total revenues (11) 19 (30) NM
Banking and deposit interest expense — (1) 1 NM
Total net revenues (11) 20 (31) NM
Expenses
Distribution expenses 1— 1NM
Interest and debt expense 123 94 29 31
General and administrative expense 210 196 14 7
Total expenses 334 290 44 15
Operating loss $ (345) $ (270) $ (75) (28)%
NM Not Meaningful.
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