Ameriprise 2014 Annual Report Download

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Annual Report 2014

Table of contents

  • Page 1
    Annual Report 2014

  • Page 2
    ... per share and as noted) GAAP 2014 2013 2012 Operating 2014 2013 2012 Net revenues Net income from continuing operations attributable to Ameriprise Financial Earnings from continuing operations per diluted share attributable to Ameriprise Financial common shareholders Return on equity from...

  • Page 3
    ... a powerful, diversified business model firmly centered on serving our clients' needs. As I will share in this letter, Ameriprise is performing well. And in many ways, we are outperforming. (continued on next page) JAMES M. CRACCHIOLO CHAIRMAN AND CHIEF EXECUTIVE OFFICER Annual Report 2014 | 1

  • Page 4
    ... 10 variable universal life insurance provider Highest forgiveness rating in the investment industry No. 2 most influential brokerage in social media Top 30 global asset manager No. 2 mutual fund advisory program in assets No. 11 long-term mutual fund manager in the U.S. (see source information on...

  • Page 5
    ...use the equity our shareholders entrust to us. At the conclusion of 2014, operating ROE reached a new high of 23%, which we've more than doubled over the last five years. Few financial services companies generate this level and growth of return. Investors have noticed. The total return of Ameriprise...

  • Page 6
    ... in financial planning and we've long held that position. Our high client satisfaction and referral rates are essential to our growth. In fact, Forrester Research named us a "client-obsessed firm," and also rated Ameriprise no. 1 in customer experience across investment firms. Our offering appeals...

  • Page 7
    ... secure. Tools such as Paperless Office are saving resources and increasing efficiency. We launched Total View, an account aggregation tool clients use to view their accounts held at Ameriprise as well as assets held at more than 10,000 financial institutions. In 2015, we'll introduce our new Money...

  • Page 8
    ...years, we've averaged 10% annual growth in client assets. This strong growth trend is also reflected in the productivity of our advisors. In 2014, operating net revenue per financial advisor increased to $496,000 - a record high. We're working with our advisors to fully benefit from the resources we...

  • Page 9
    ...enabled our advisors to submit new business more efficiently. In 2014, variable annuity balances grew to $77 billion, as we benefited from equity market growth. Assets in fixed annuities declined due to low sales given that interest rates remain at historically low levels. As we work with clients to...

  • Page 10
    ..., we increased reserves related to prior-year auto liability claims. We are taking the right steps to strengthen the business and believe we can profitably grow and continue to serve more clients as we move forward. In terms of financials, Annuity and Protection pretax operating earnings were...

  • Page 11
    ...; and multi-asset strategies and solutions. Our work centers on helping our clients achieve the outcomes they need and enables us to drive profitable net flows. $501 $457 $436 2012 $455 2013 2011 2010 Asset Management assets under management $ in billions Annual Report 2014 | 9 2014 $506

  • Page 12
    ... capital-demanding advisory and asset management businesses. We introduced a number of new products in 2014, including the Columbia Diversified Real Return Fund, the Threadneedle Global Multi Asset Income Fund and four locally managed Asian equity and fixed income funds for investors in Asia.* We...

  • Page 13
    ... invest in the business while returning capital to shareholders at one of the highest rates in financial services. $1,456 $1,481 2013 $573 $1,340 2010 $183 2011 $212 2012 $314 $411 Dividends/share repurchases $ in millions Dividends paid Common stock share repurchases Annual Report 2014...

  • Page 14
    ... 40 million meals and 130,000 volunteer hours to support hunger relief. In 2014, Ameriprise held its fifth annual National Day of Service with more than 12,000 Ameriprise employees, financial advisors and clients volunteering at Feeding America food banks and other hunger relief organizations across...

  • Page 15
    ... our position as a financial services leader. We remain sharply focused on serving our clients' needs and capturing growth opportunities. A company is only as strong as the people behind it. Earning trust for the way we work with our clients is paramount to all of us at Ameriprise. In fact, we...

  • Page 16
    ...distributed by RiverSource Distributors, Inc. Auto and home insurance is underwritten by IDS Property Casualty Insurance Company, or in certain states, Ameriprise Insurance Company. Personal trust services are offered through Ameriprise National Trust Bank. Ameriprise Financial Services, Inc. Member...

  • Page 17
    Ameriprise Financial, Inc. 2014 Form 10-K

  • Page 18
    ...) 1099 Ameriprise Financial Center, Minneapolis, Minnesota (Address of principal executive offices) Registrant's telephone number, including area code: (612) 671-3131 Securities registered pursuant to Section 12(b) of the Act: Title of each class Common Stock (par value $.01 per share) Securities...

  • Page 19
    ... ...Principal Accountant Fees and Services ...177 179 179 180 180 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities ...Selected Financial Data ...Management's Discussion and Analysis of Financial Condition and Results of Operations...

  • Page 20
    ...to our entire family of companies, or to one or more of our subsidiaries. Our headquarters is located at 55 Ameriprise Financial Center, Minneapolis, Minnesota 55474. We also maintain executive offices in New York City. Ameriprise Financial is a diversified financial services company with a 120 year...

  • Page 21
    ... we provide through our advisors (e.g., financial planning, investment advisory accounts and retail brokerage services) and products and services that we market directly to consumers or through affinity groups (e.g., personal auto and home insurance). We currently use Columbia Managementá"¼ as the...

  • Page 22
    ...Columbia Management Investment Distributors, Inc. American Enterprise Investment Services Inc. RiverSource Life Insurance Company IDS Property Casualty Insurance Company Ameriprise Certificate Company Ameriprise Trust Company Ameriprise National Trust Bank RiverSource Life Insurance Co. of New...

  • Page 23
    ...to RiverSource Life and RiverSource Life of NY as the ''RiverSource Life companies.'' IDS Property Casualty Insurance Company (''IDS Property Casualty'' or ''Ameriprise Auto & Home'') provides personal auto, home, travel and excess liability insurance products. Ameriprise Insurance Company, a wholly...

  • Page 24
    ... carrying the Ameriprise Financial, Columbia Management or RiverSource name, as well as solutions offered by unaffiliated firms. Our advisors deliver financial solutions to our advisory clients principally by building long-term personal relationships through financial planning that is responsive...

  • Page 25
    ..., and use self-directed asset allocation and other financial planning tools. We also offer shares in public non-exchange traded real estate investment trusts, structured notes and other alternative investments issued by unaffiliated companies. We offer trading and portfolio strategy services across...

  • Page 26
    ... through Ameriprise Insured Money Market Account (AIMMA) brokerage sweep accounts. Ameriprise National Trust Bank continues to provide personal trust, custodial, agency and investment management services to help meet estate and wealth transfer needs of our advisors' individual and corporate clients...

  • Page 27
    ... with investments offered by banks, savings and loan associations, credit unions, mutual funds, insurance companies and similar financial institutions. In times of weak performance in the equity markets, certificate sales are generally stronger. In 2014, advisors' cash sales of our certificates were...

  • Page 28
    ...clients in separately managed accounts, collective funds, hedge funds, the general and separate accounts of the RiverSource Life companies, the assets of IDS Property Casualty, Ameriprise Certificate Company and certain of our other affiliated companies. These investment management teams also manage...

  • Page 29
    ... the Ameriprise financial advisor network. Variable product funds are available as underlying investment options in variable annuity and variable life insurance products, including RiverSource products. The Columbia Management family of funds includes domestic and international equity funds, fixed...

  • Page 30
    .... Management of Enterprise Owned Assets We provide investment management services and recognize management fees for certain assets on our Consolidated Balance Sheets, such as the assets held in the general account of our RiverSource Life companies and assets held by Ameriprise Certificate Company...

  • Page 31
    ... credited on the fixed account balances. We also earn net investment income on owned assets supporting reserves for immediate annuities and for certain guaranteed benefits offered with variable annuities and on capital supporting the business. Intersegment revenues for this segment reflect fees paid...

  • Page 32
    ...Our Segments - Asset Management - Product and Service Offerings - U.S. Registered Funds,'' above) as well as variable portfolio funds of other companies. RiverSource variable annuity products in force offer a fixed account investment option with guaranteed minimum interest crediting rates ranging up...

  • Page 33
    ...Property Casualty companies (as defined below under ''Ameriprise Auto & Home Insurance Products''). 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...

  • Page 34
    ...other companies. Our Portfolio Stabilizer funds of funds offering is available for new sales of variable universal life insurance products. RiverSource variable universal life insurance products in force offer a fixed account investment option with guaranteed minimum interest crediting rates ranging...

  • Page 35
    ... direct marketing to sell our personal auto, home and travel insurance products through alliances with commercial institutions and affinity groups, and directly to our clients and the general public. We also receive referrals through our financial advisor network. Our Property Casualty companies...

  • Page 36
    ...Item 8 of this Annual Report on Form 10-K for additional information on reinsurance. Liabilities and Reserves We maintain adequate financial reserves to cover the insurance risks associated with the insurance products we issue. Generally, reserves represent estimates of the invested assets that our...

  • Page 37
    ... corporate expenses. Competition We operate in a highly competitive global industry. As a diversified financial services firm, we compete directly with a variety of financial institutions, including registered investment advisors, securities brokers, asset managers, banks and insurance companies...

  • Page 38
    ...and registered or filed applications to register certain service marks and brand names that we consider important to the marketing of our products and services, including but not limited to Ameriprise Financial, Columbia Management, Threadneedle, RiverSource and Columbia Threadneedle Investments. We...

  • Page 39
    ... marketing requirements. Investment companies are required by the SEC to adopt and implement written policies and procedures designed to prevent violations of the federal securities laws and to designate a chief compliance officer. Ameriprise Certificate Company pays dividends to the parent company...

  • Page 40
    ...insurance and securities laws. The Minnesota Department of Commerce, the Wisconsin Office of the Commissioner of Insurance, and the New York State Department of Financial Services (the ''Domiciliary Regulators'') regulate certain of the RiverSource Life companies, and the Property Casualty companies...

  • Page 41
    ..., Item 8 of this Annual Report on Form 10-K for additional information regarding guaranty association assessments. Certain variable annuity and variable life insurance policies offered by the RiverSource Life companies constitute and are registered as securities under the Securities Act of 1933, as...

  • Page 42
    ... to financial holding companies. Parent Company Regulation Ameriprise Financial is a publicly traded company that is subject to SEC and New York Stock Exchange (''NYSE'') rules and regulations regarding public disclosure, financial reporting, internal controls and corporate governance. The...

  • Page 43
    ... the number and size of personal bankruptcy filings, the rate of unemployment, decreases in property values, and the level of consumer confidence and consumer debt, may substantially affect consumer loan levels and credit quality, which, in turn, could impact client activity in all of our businesses...

  • Page 44
    ... us or our financial advisors at will or on relatively short notice. Our clients can also reduce the aggregate amount of managed assets or shift their funds to other types of accounts with different rate structures, for any number of reasons, including investment performance, changes in prevailing...

  • Page 45
    ... products have guaranteed minimum crediting rates. Due to the long-term nature of the liabilities associated with certain of our businesses, such as long term care and fixed universal life with secondary guarantees as well as fixed annuities and guaranteed benefits on variable annuities, sustained...

  • Page 46
    ... a number of factors, including name recognition, service, the quality of investment advice, investment performance, product offerings and features, price, perceived financial strength, claims-paying ability and credit ratings. Our competitors include broker-dealers, banks, asset managers, insurers...

  • Page 47
    ... and services, or the financial industry in general, may increase the number of withdrawals and redemptions or reduce purchases made by our clients, which would adversely impact the levels of our assets under management, revenues and liquidity position. A drop in our investment performance as...

  • Page 48
    ... adversely impact our results of operations or financial condition. Fixed maturity, equity, trading securities and short-term investments, which are reported at fair value on the consolidated balance sheets, represent the majority of our total cash and invested assets. The determination of fair...

  • Page 49
    ... of operations and financial condition. We establish reserves as estimates of our liabilities to provide for future obligations under our insurance policies, annuities and investment certificate contracts. Reserves do not represent an exact calculation but, rather, are estimates of contract benefits...

  • Page 50
    ... the amortization of expenses we deferred in connection with the acquisition of the policy or contract. For our long term care insurance and universal life insurance policies with secondary guarantees, as well as variable annuities with guaranteed minimum withdrawal benefits, actual persistency that...

  • Page 51
    ... direct to the acquisition of new or renewal business, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of annuity, life and disability income insurance and, to a lesser extent, direct marketing expenses for personal auto and home...

  • Page 52
    ... and first-party liability coverages, this insurance may not be sufficient to protect us against all losses. In addition, the trend toward broad consumer and general public notification of such incidents could exacerbate the harm to our business, financial condition or results of operations. Even if...

  • Page 53
    ... and our face-amount certificate company) to pay dividends or make other permitted payments. See Item 1 of this Annual Report on Form 10-K - ''Regulation'' as well as the information contained in Part II, Item 7 under the heading ''Management's Discussion and Analysis of Financial Condition and...

  • Page 54
    ... paid under our insurance policies; significant widespread property damage may materially increase the amount of claims submitted under our property casualty insurance policies; an increase in claims and any resulting increase in claims reserves caused by a disaster may harm the financial condition...

  • Page 55
    ... generally increase. Our businesses are regulated heavily, and changes to the laws and regulations applicable to our businesses may have an adverse effect on our operations, reputation and financial condition. Virtually all aspects of our business, including the activities of our parent company...

  • Page 56
    ... earnings. In the years ended December 31, 2014, 2013, and 2012, we earned $1.9 billion, $1.8 billion and $1.6 billion, respectively, in distribution fees. Our own Columbia Management family of mutual funds paid a significant portion of these revenues to us in accordance with plans and agreements of...

  • Page 57
    ... on our financial statements. Our accounting policies and methods are fundamental to how we record and report our financial condition and results of operations. Some of these policies require use of estimates and assumptions that may affect the reported value of our assets or liabilities and results...

  • Page 58
    ... in and the adoption of accounting standards and securities and insurance rating agency processes and standards applicable to our businesses and the financial services industry; and changes in general economic or market conditions. Stock markets in general have experienced volatility that has often...

  • Page 59
    ... performance with the U.S. Environmental Protection Agency awarding both buildings with Energy Star certification. Our lease term for the Ameriprise Financial Center began in November 2000 and extends for 20 years, with several options to extend the term. Our aggregate annual rent for the Ameriprise...

  • Page 60
    ...investment personnel's potential access and use of material non-public information, real estate investment trusts, insurance products, and financial advice offerings; supervision of the Company's financial advisors; administration of insurance claims; security of client information; and front office...

  • Page 61
    ... of a single allegation related to certain coverage determinations made under long term care insurance policies issued between 1989 and 1992. An administrative hearing on this remaining allegation concluded in November 2014. The Company cannot reasonably estimate the range of loss, if any, that...

  • Page 62
    ... notice. Acquisitions under the share repurchase program may be made in the open market, through privately negotiated transactions or block trades or other means. (2) Includes restricted shares withheld pursuant to the terms of awards under the Company's share-based compensation plans to offset tax...

  • Page 63
    ... assets Policyholder account balances, future policy benefits and claims Separate account liabilities Customer deposits Long-term debt(1) Short-term borrowings Total liabilities Total Ameriprise Financial, Inc. shareholders' equity Noncontrolling interests' equity (1) 2013 2012 (in millions) 2011...

  • Page 64
    ...are centered on the long-term, personal relationships between our clients and our financial advisors and registered representatives (our ''advisors''). Through our advisors, we offer financial planning, products and services designed to be used as solutions for our clients' cash and liquidity, asset...

  • Page 65
    ... our fixed annuities, fixed insurance, deposit products and the fixed portion of variable annuities and variable insurance contracts, the value of deferred acquisition costs (''DAC'') and deferred sales inducement costs (''DSIC'') assets, the values of liabilities for guaranteed benefits associated...

  • Page 66
    ... generally accepted accounting principles (''GAAP''), management believes that operating measures, which exclude net realized gains or losses; the market impact on variable annuity guaranteed benefits, net of hedges and the related DSIC and DAC amortization; the market impact on indexed universal...

  • Page 67
    ... restructuring charges. After-tax is calculated using the statutory tax rate of 35%. Operating return on equity, excluding AOCI, is calculated using the trailing twelve months of earnings excluding the after-tax net realized gains/losses; market impact on variable annuity guaranteed benefits, net of...

  • Page 68
    ... direct costs of acquiring an insurance policy or annuity contract are expensed as incurred. For our annuity and life, disability income (''DI'') and long term care (''LTC'') insurance products, our DAC and DSIC balances at any reporting date are supported by projections that show management...

  • Page 69
    ... client asset value growth rates are based on assumed gross annual returns of 9% for equity funds and 6% for fixed income funds. We typically use a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance...

  • Page 70
    ... Liabilities for fixed account values on fixed and variable deferred annuities are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges. The majority of the variable annuity contracts offered by us contain guaranteed minimum...

  • Page 71
    ...reported. Liabilities for estimates of benefits that will become payable on future claims on term life, whole life, DI and LTC policies are based on the net level premium method, using anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets...

  • Page 72
    ... or of the variability of cash flows to be received or paid related to a recognized asset or liability (''cash flow hedges'') or (iii) hedges of foreign currency exposures of net investments in foreign operations (''net investment hedges in foreign operations''). Our accounting policy is to not...

  • Page 73
    ...-for-Sale, mortgage loans, policy and certificate loans, other investments, cash and cash equivalents and investments of CIEs; the changes in fair value of trading securities, certain derivatives and certain assets and liabilities of CIEs; the pro rata share of net income or loss on equity method...

  • Page 74
    ... within interest credited to fixed accounts. Benefits, Claims, Losses and Settlement Expenses Benefits, claims, losses and settlement expenses consist of amounts paid and changes in liabilities held for anticipated future benefit payments under insurance policies and annuity contracts, along...

  • Page 75
    ... operations: Years Ended December 31, 2014 Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts Benefits...

  • Page 76
    ... DAC Total expenses Total(1) (1) 2014 $ 2013 (in millions) (29) $ (18) 6 (5) 8 (79) 14 (84) $ 66 (43) $ Includes a $17 million net benefit related to the market impact on variable annuity guaranteed benefits for the year ended December 31, 2013. Net Revenues Net revenues increased $1.1 billion...

  • Page 77
    ... change in 2014 compared to 2013 from equity market and volatility impacts on the related variable annuity guaranteed living benefits liability. Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, fixed income credit...

  • Page 78
    .... In December 2014, we received IRS approval for a change in accounting method related to variable annuity hedging. Accordingly, we began using the approved method of accounting in the fourth quarter. The change to the approved method increased deferred tax expense and current tax receivables with...

  • Page 79
    ...: Years Ended December 31, 2014 Segment Pretax Operating Increase (Decrease) Other revenues Benefits, claims, losses and settlement expenses Amortization of DAC Total expenses Total $ Annuities $ - 5 17 22 (22) $ Protection $ (in millions) (29) $ - 1 (9) (8) (21) $ 21 (81) (60) 60 $ 2013 Annuities...

  • Page 80
    ... 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. The following table presents the changes in wrap account assets and average balances for the...

  • Page 81
    ... and unaffiliated financial advisors. Individual products include U.S. mutual funds and non-U.S. equivalents, exchange-traded funds and variable product funds underlying insurance and annuity separate accounts. Institutional asset management services are designed to meet specific client objectives...

  • Page 82
    ... track records are made to account for differences in fund expenses between share classes of a fund. Equal Weighted Rankings in Top 2 Quartiles: Counts the number of funds with above median ranking divided by the total number of funds. Asset size is not a factor. Asset Weighted Rankings in Top...

  • Page 83
    ... platform sub-advised by Columbia as well as advisors not affiliated with Ameriprise Financial, Inc. The following table presents ending balances and average managed assets: Average(1) December 31, Change 4.5 0.5 (0.2) 4.8 2014 (in billions) 1% $ 359.7 $ - 150.9 (6) (3.3) 1% $ 507.3 $ 2013...

  • Page 84
    ..., 2014 Equity Fixed income Money market Alternative Hybrid and other Total managed assets (1) 2013 275.3 $ 196.4 7.1 6.4 15.6 500.8 $ $ 278.1 $ 193.4 6.7 7.4 20.0 505.6 $ $ Average ending balances are calculated using an average of the prior period's ending balance and all months in the current...

  • Page 85
    ... quantify due to uncertain timing, volume and mix of the outflows. Columbia Management managed assets increased $4.5 billion, or 1%, during the year ended December 31, 2014 primarily due to market appreciation, partially offset by retail fund distributions. Total Columbia Management net inflows were...

  • Page 86
    ... on an operating basis: Years Ended December 31, 2014 Revenues Management and financial advice fees Distribution fees Net investment income Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Amortization of deferred acquisition costs...

  • Page 87
    ... Ended December 31, 2014 Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts Benefits, claims, losses...

  • Page 88
    ... annuity crediting rate excluding capitalized interest decreased to 3.0% for the year ended December 31, 2014 compared to 3.6% for the prior year reflecting the re-pricing of the five-year guarantee block. Benefits, claims, losses and settlement expenses, which exclude the market impact on variable...

  • Page 89
    ... Ended December 31, 2014 Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts Benefits, claims, losses...

  • Page 90
    ... of our Corporate & Other segment on an operating basis: Years Ended December 31, 2014 Revenues Distribution fees Net investment income (loss) Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest and debt expense General and...

  • Page 91
    ... operations: Years Ended December 31, 2013 Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts Benefits...

  • Page 92
    ... credited to fixed accounts Total expenses Total (1) (1) 2013 $ 2012 (in millions) (18) $ (41) (5) (28) (79) 23 - 2 (84) (3) $ (38) 66 $ Includes a $17 million net benefit and a $14 million net expense related to the market impact on variable annuity guaranteed benefits for the years ended...

  • Page 93
    ... reserves related to living benefit guarantees primarily attributable to prior periods, partially offset by lower bond fund returns related to the life contingent benefits associated with GMWB. An increase in expenses related to our auto and home business driven by higher claim and claim adjustment...

  • Page 94
    ... compensation related accruals and higher expenses from investments in the business. General and administrative expense for the prior year included a $15 million benefit from a settlement with a third-party service provider. Income Taxes Our effective tax rate on income from continuing operations...

  • Page 95
    ... on an operating basis: Years Ended December 31, 2013 Revenues Management and financial advice fees Distribution fees Net investment income Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest and debt expense General and...

  • Page 96
    ... advisor productivity and experienced advisor recruiting. Operating net revenue per branded advisor was $440,000 for the year ended December 31, 2013, up 11% from the prior year driven by the combination of asset growth and strong client activity. Management and financial advice fees increased...

  • Page 97
    ... balance and all months in the current period. The following tables present the changes in Columbia and Threadneedle managed assets: Years Ended December 31, 2013 Columbia Managed Assets Rollforward Retail Funds Beginning assets Mutual fund inflows Mutual fund outflows Net VP/VIT fund flows Net new...

  • Page 98
    ...-advisor and outflows associated with a share class change in the RIA channel. Columbia Management retail net outflows during the year ended December 31, 2013 included $9.9 billion of reinvested dividends, which was driven by market appreciation last year and the related gains in certain portfolios...

  • Page 99
    ... on an operating basis: Years Ended December 31, 2013 Revenues Management and financial advice fees Distribution fees Net investment income Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Amortization of deferred acquisition costs...

  • Page 100
    ...Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts Benefits, claims, losses and settlement expenses Amortization of deferred acquisition costs Interest and debt expense General and administrative expense Total expenses Operating...

  • Page 101
    ...variable annuities with living benefit guarantees to the Portfolio Stabilizer funds. Benefits, claims, losses and settlement expenses for the year ended December 31, 2013 included a $21 million expense from unlocking primarily reflecting the impact of variable annuity model changes. Benefits, claims...

  • Page 102
    ...Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts Benefits, claims, losses and settlement expenses Amortization of deferred acquisition costs Interest and debt expense General and administrative expense Total expenses Operating...

  • Page 103
    ... on an operating basis: Years Ended December 31, 2013 Revenues Management and financial advice fees Distribution fees Net investment income Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest and debt expense General and...

  • Page 104
    ... broker-dealer subsidiary, American Enterprise Investment Services, Inc. (''AEIS''), our Auto and Home insurance subsidiary, IDS Property Casualty Insurance Company (''IDS Property Casualty''), doing business as Ameriprise Auto & Home Insurance, our transfer agent subsidiary, Columbia Management...

  • Page 105
    ... 2014 RiverSource Life(1) ACC(2) Columbia Management Investment Advisers, LLC Columbia Management Investment Services Corporation Threadneedle Ameriprise Trust Company IDS Property Casualty(3) Ameriprise Captive Insurance Company RiverSource Distributors, Inc. AMPF Holding Corporation Total dividend...

  • Page 106
    ..., LLC Columbia Management Investment Services Corporation Threadneedle(2) Ameriprise Trust Company IDS Property Casualty(3) Ameriprise Holdings, Inc. Ameriprise Advisor Capital, LLC RiverSource Distributors, Inc. Ameriprise Captive Insurance Company AMPF Holding Corporation Total (1) 2013 (in...

  • Page 107
    ... sales of investment properties and an increase in cash from changes in our freestanding derivatives and related collateral, as well as an increase in fee revenue partially offset by related expenses and a $187 million increase in income taxes paid, net. Net cash provided by operating activities...

  • Page 108
    ... the assets of the CIEs. Payments due by period as of December 31, 2014 were as follows: Total Balance Sheet Long-term debt(1) Insurance and annuities(2) Investment certificates(3) Deferred premium options(4) Affordable housing partnerships(5) Off-Balance Sheet Lease obligations Purchase obligations...

  • Page 109
    ... of guaranteed benefit annuity riders, or from assumptions regarding interest rates assumed in the Company's loss recognition testing of its long term care business, or from assumptions regarding anticipated claims and losses relating to the Company's automobile and home insurance products; changes...

  • Page 110
    ...generated on our fixed annuities, fixed insurance, brokerage client cash balances, face-amount certificate products and the fixed portion of our variable annuities and variable insurance contracts, the value of DAC and DSIC assets, the value of liabilities for guaranteed benefits associated with our...

  • Page 111
    ... hedge program(5) Fixed annuities, fixed insurance and fixed portion of variable annuities and variable insurance products Brokerage client cash balances Certificates Indexed universal life insurance Total $ Before Hedge Impact $ (44) - 826 28 N/A 854 - 49 138 2 34 1,033 $ Hedge Impact Net Impact...

  • Page 112
    ...invest in fixed rate securities to fund the rate credited to clients. We guarantee an interest rate to the holders of these products. Investment assets and client liabilities generally differ as it relates to basis, repricing or maturity characteristics. Rates credited to clients' accounts generally...

  • Page 113
    ...be impacted by corporate strategies implemented at management's discretion. The average yield for investment purchases during the year ended December 31, 2014 was approximately 2.7%. The reinvestment of proceeds from maturities, calls and prepayments at rates below the current portfolio yield, which...

  • Page 114
    ... 31, 2014. Brokerage Client Cash Balances We pay interest on certain brokerage client cash balances and have the ability to reset these rates from time to time based on prevailing economic and business conditions. We earn revenue to fund the interest paid from interest-earning assets or fees from...

  • Page 115
    ... must credit to client accounts. Interest Rate Risk - Indexed Universal Life As mentioned above, most of the proceeds received from IUL insurance are invested in fixed income securities with the return on those investments intended to fund the purchase of call spreads. There are two risks relating...

  • Page 116
    ...: Ameriprise Financial, Inc. Report of Independent Registered Public Accounting Firm ...Consolidated Statements of Operations - Years ended December 31, 2014, 2013 and 2012 ...Consolidated Statements of Comprehensive Income - Years ended December 31, 2014, 2013 and 2012 ...Consolidated Balance...

  • Page 117
    ... position of Ameriprise Financial, Inc. and its subsidiaries (the ''Company'') at December 31, 2014 and 2013, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2014 in conformity with accounting principles generally accepted in...

  • Page 118
    ... Ended December 31, 2014 Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts Benefits, claims, losses...

  • Page 119
    ... service credit Net income (loss) arising during the period Total defined benefit plans Total other comprehensive income (loss), net of tax Total comprehensive income Less: Comprehensive income (loss) attributable to noncontrolling interests Comprehensive income attributable to Ameriprise Financial...

  • Page 120
    Consolidated Balance Sheets Ameriprise Financial, Inc. December 31, 2014 2013 (in millions, except share amounts) Assets Cash and cash equivalents Cash of consolidated investment entities Investments Investments of consolidated investment entities, at fair value Separate account assets Receivables ...

  • Page 121
    ...of common shares (25,441,707) Share-based compensation plans 7,441,718 Other - Balances at December 31, 2012 Comprehensive income: Net income Other comprehensive income (loss), net of tax 203,942,994 - - 3 $ - - 6,237 $ - - 5,603 1,029 - Treasury Shares Total Accumulated Ameriprise Other Financial...

  • Page 122
    ...operating assets and liabilities: Restricted and segregated cash and investments Deferred acquisition costs Other investments, net Policyholder account balances, future policy benefits and claims Derivatives, net of collateral Receivables Brokerage deposits Accounts payable and accrued expenses Cash...

  • Page 123
    ... the sale of Securities America in the fourth quarter of 2011. The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (''GAAP''). In the Consolidated Statements of Operations, the Company reclassified certain fixed wholesaling...

  • Page 124
    ... recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. Cash and Cash Equivalents Cash equivalents include time deposits and other highly liquid investments with original maturities of 90 days or less...

  • Page 125
    ... loans. Affordable housing partnerships and seed money investments are accounted for under the equity method. Trading securities primarily include common stocks and trading bonds. Trading securities are carried at fair value with unrealized and realized gains (losses) recorded within net investment...

  • Page 126
    ... home equity lines of credit and unsecured loans to affiliates of Ameriprise Bank and it sold Ameriprise Bank's credit card account portfolio to Barclays Bank Delaware (''Barclays''). Other Loans Other loans consist of policy and certificate loans and brokerage margin loans. When originated, policy...

  • Page 127
    ...primarily funds held for the exclusive benefit of variable annuity contractholders and variable life insurance policyholders, who assume the related investment risk. Income and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company...

  • Page 128
    ... The Company incurs costs in connection with acquiring new and renewal insurance and annuity businesses. The portion of these costs which are incremental and direct to the acquisition of a new or renewal insurance policy or annuity contract are deferred. Significant costs capitalized include sales...

  • Page 129
    .... The client asset value growth rates are the rates at which variable annuity and variable universal life (''VUL'') insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and...

  • Page 130
    ...account values on fixed and variable deferred annuities are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges. The majority of the variable annuity contracts offered by the Company contain guaranteed minimum death benefit...

  • Page 131
    ...Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates. Life and Health Insurance Life and health insurance includes liabilities for fixed account values on fixed and variable universal life...

  • Page 132
    ...Unearned Revenue Liability The Company's fixed and variable universal life policies require payment of fees or other policyholder assessments in advance for services to be provided in future periods. These charges are deferred as unearned revenue and amortized using estimated gross profits, similar...

  • Page 133
    ...of assets and recognized when earned. Distribution fees also include amounts received under marketing support arrangements for sales of mutual funds and other companies' products, such as through the Company's wrap accounts, as well as surrender charges on fixed and variable universal life insurance...

  • Page 134
    ... impact on the Company's consolidated results of operations and financial condition. Compensation - Stock Compensation In June 2014, the FASB updated the accounting standards related to stock compensation. The update clarifies the accounting for share-based payments with a performance target that...

  • Page 135
    ...expected to have a material impact on the Company's consolidated results of operations and financial condition. Investments - Equity Method and Joint Ventures In January 2014, the FASB updated the accounting standard related to investments in qualified affordable housing projects. The update allows...

  • Page 136
    ...advice and related services to property funds, certain of which are considered VIEs. For investment management services, the Company generally earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees. The Company has...

  • Page 137
    ... of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: Corporate Debt Securities Balance, January 1, 2014 Total gains (losses) included in: Net income Other comprehensive income Purchases Sales Issues Settlements Transfers...

  • Page 138
    ... in: Net income Other comprehensive loss Purchases Sales Issues Settlements Transfers into Level 3 Transfers out of Level 3 Balance, December 31, 2013 Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2013 (1) (2) Common Stocks $ 14...

  • Page 139
    ... cash flow Annual default rate Discount rate Constant prepayment rate Loss recovery December 31, 2013 Fair Value Other assets (property funds) CLO debt (in millions) $ 1,936 Valuation Technique Discounted cash flow/ market comparables Discounted cash flow Unobservable Input Equivalent yield...

  • Page 140
    ... real estate held in property funds managed by Threadneedle. The fair value of these properties is calculated by a third party appraisal service by discounting future cash flows generated by the expected market rental value for the property using the equivalent yield of a similar investment property...

  • Page 141
    ...21 181 363 398 1,404 4,718 7,085 $ 5. Investments The following is a summary of Ameriprise Financial investments: December 31, 2014 Available-for-Sale securities, at fair value Mortgage loans, net Policy and certificate loans Other investments Total $ 2013 (in millions) 30,027 $ 30,310 3,440 3,510...

  • Page 142
    ... and short-term borrowings. At December 31, 2014 and 2013, fixed maturity securities comprised approximately 84% and 85%, respectively, of Ameriprise Financial investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations...

  • Page 143
    ... loss position: December 31, 2014 Less than 12 months Description of Securities Corporate debt securities Residential mortgage backed securities Commercial mortgage backed securities Asset backed securities State and municipal obligations Foreign government bonds and obligations Total Number...

  • Page 144
    ...-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as DAC, DSIC, unearned revenue, benefit reserves and...

  • Page 145
    ... year ended December 31, 2014 primarily related to credit losses on corporate debt securities and non-agency residential mortgage backed securities. Other-than-temporary impairments for the years ended December 31, 2013 and 2012 primarily related to credit losses on non-agency residential mortgage...

  • Page 146
    ... for loan losses was $13 million and $21 million, respectively. Unearned income, unamortized premiums and discounts, and net unamortized deferred fees and costs are not material to the Company's total loan balance. Purchases and sales of loans were as follows: Years Ended December 31, 2014 Purchases...

  • Page 147
    ...Company's syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loans at both December 31, 2014 and 2013...

  • Page 148
    ...for loan losses or income recognized for the years ended December 31, 2014, 2013 and 2012. There are no commitments to lend additional funds to borrowers whose loans have been restructured. 7. Reinsurance For most new life insurance policies, the Company reinsures 90% of the death benefit liability...

  • Page 149
    ... umbrella loss with a limit of $5 million per loss. The effect of reinsurance on premiums for the Company's short-duration contracts was as follows: Years Ended December 31, 2014 Written premiums Direct Ceded Total net written premiums Earned premiums Direct Ceded Total net earned premiums 2013 (in...

  • Page 150
    ... expense as of December 31, 2014 for the next five years is as follows: (in millions) 2015 2016 2017 2018 2019 $ 32 26 22 20 17 9. Deferred Acquisition Costs and Deferred Sales Inducement Costs In the third quarter of the year, management conducts its annual review of insurance and annuity...

  • Page 151
    ...$ Fixed Annuities Fixed annuities include both deferred and payout contracts. Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. The Company generally invests...

  • Page 152
    ... variable annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on fund performance. At issue, the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually...

  • Page 153
    ...2012, clients who purchase a GMWB or GMAB rider are invested in one or more of four Portfolio Stabilizer (managed volatility) funds designed to pursue total return while seeking to mitigate exposure to market volatility. Certain UL policies offered by the Company provide secondary guarantee benefits...

  • Page 154
    ... of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: December 31, 2014 (in millions) Mutual funds: Equity Bond Other Total mutual funds $ 41,403 25,060 4,490 70,953 $ 39,195 26,519 3,764 69,478 2013 $ $ No gains or losses were recognized...

  • Page 155
    ... fixed and variable rate securities. Certain investment certificate products have returns tied to the performance of equity markets. The Company guarantees the principal for purchasers who hold the certificate for the full 52-week term and purchasers may participate in increases in the stock market...

  • Page 156
    ..., interest payments are mandatorily deferred if the Company does not meet specified capital adequacy, net income or shareholders' equity levels. As of December 31, 2014 and 2013, the Company had met the specified levels. On November 23, 2005, the Company issued $1.5 billion of unsecured senior notes...

  • Page 157
    ... securities pledged is recorded in investments and was $52 million at both December 31, 2014 and 2013. The stated interest rate of the repurchase agreements is a weighted average annualized interest rate on repurchase agreements held as of the balance sheet date. The Company's insurance subsidiary...

  • Page 158
    ... the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: December 31, 2014 Level 1 Assets Cash equivalents Available-for-Sale securities: Corporate debt securities Residential mortgage backed securities Commercial mortgage backed securities Asset...

  • Page 159
    ... obligations U.S. government and agencies obligations Foreign government bonds and obligations Common stocks Total Available-for-Sale securities Trading securities Separate account assets Other assets: Interest rate derivative contracts Equity derivative contracts Credit derivative contracts...

  • Page 160
    ...$ $ 721 40 811 Balance, January 1, 2014 Total losses included in: Net income Issues Settlements Balance, December 31, 2014 Changes in unrealized losses relating to liabilities held at December 31, 2014 included in: Interest credited to fixed accounts Benefits, claims, losses and settlement expenses...

  • Page 161
    ...Balance, January 1, 2013 Total (gains) losses included in: Net income Issues Settlements Balance, December 31, 2013 Changes in unrealized (gains) losses relating to liabilities held at December 31, 2013 included in: Interest credited to fixed accounts Benefits, claims, losses and settlement expenses...

  • Page 162
    ...476 Discounted cash flow Yield/spread to U.S. Treasuries $ 242 Discounted cash flow Nonperformance risk(1) $ 479 Discounted cash flow Utilization of guaranteed withdrawals(2) Surrender rate Market volatility(3) Nonperformance risk(1) Elective contractholder strategy allocations(4) December 31, 2013...

  • Page 163
    ... third party pricing services. Observable inputs used to value these securities can include, but are not limited to, reported trades, benchmark yields, issuer spreads and non-binding broker quotes. Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed...

  • Page 164
    Liabilities Policyholder Account Balances, Future Policy Benefits and Claims The Company values the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value by discounting expected cash flows from ...

  • Page 165
    ... 31, 2013 Carrying Value Financial Assets Mortgage loans, net Policy and certificate loans Receivables Restricted and segregated cash Other investments and assets Financial Liabilities Policyholder account balances, future policy benefits and claims Investment certificate reserves Brokerage customer...

  • Page 166
    ... Reserves The fair value of investment certificate reserves is determined by discounting cash flows using discount rates that reflect current pricing for assets with similar terms and characteristics, with adjustments for early withdrawal behavior, penalty fees, expense margin and the Company...

  • Page 167
    .... Securities borrowed and loaned result from transactions between the Company's broker dealer subsidiary and other financial institutions and are recorded at the amount of cash collateral advanced or received. The Company's policy is to recognize amounts subject to master netting arrangements...

  • Page 168
    ... in the Recognized Consolidated Consolidated Financial Cash Securities Net Liabilities Balance Sheets Balance Sheets Instruments(1) Collateral Collateral Amount (in millions) Derivatives: OTC OTC cleared Total derivatives Securities loaned Repurchase agreements Total (1) $ 4,786 22 4,808 136 50...

  • Page 169
    ... account balances, future policy benefits and claims(2) 1,136 2,650 - 2 479 1,672 2,918 - - (575) Balance Sheet Location December 31, 2014 2013 (in millions) Other assets $ 76 $ 76 82 82 Other liabilities $ Balance Sheet Location Liabilities December 31, 2014 2013 (in millions) - - $ - - Total...

  • Page 170
    ... rate Bank assets Tax hedge Seed money Equity IUL IUL embedded derivatives EIA EIA embedded derivatives Stock market certificates Stock market certificates embedded derivatives Seed money Ameriprise Financial Franchise Advisor Deferred Compensation Plan Deferred compensation Deferred compensation...

  • Page 171
    ... at December 31, 2014 and 2013, respectively. EIA, IUL and stock market certificate products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by the Company related to EIA, IUL and stock market certificate products will...

  • Page 172
    ... revenues Interest and debt expense Net investment income Total Years Ended December 31, 2014 $ - 4 (5) (1) 2013 (in millions) $ - 4 (5) $ (1) 2012 $ 3 4 (6) 1 $ $ The following is a summary of net unrealized derivatives losses included in AOCI related to cash flow hedges: 2014 Net unrealized...

  • Page 173
    ... (''Advisor Group Deferral Plan'') and the Threadneedle Equity Incentive Plan (''EIP''). The components of the Company's share-based compensation expense, net of forfeitures, were as follows: December 31, 2014 Stock option Restricted stock(1) Restricted stock units Liability awards Total (1) 2013...

  • Page 174
    ... settled for Ameriprise Financial common stock upon the director's termination of service. The employee awards generally vest ratably over three to four years. Compensation expense for deferred share units and restricted stock units is based on the market price of Ameriprise Financial stock on the...

  • Page 175
    ... commissions into Ameriprise Financial stock or other investment options. The Franchise Advisor Deferral Plan is an unfunded non-qualified deferred compensation plan under section 409A of the Internal Revenue Code. Prior to 2011, all deferrals were in the form of share-based awards and the Company...

  • Page 176
    .... Generally, the expense is based on the grant date fair value of the awards as determined by an annual independent valuation of Threadneedle's fair market value; however, for awards accounted for as a liability the expense is adjusted to reflect Threadneedle's current calculated value (the change...

  • Page 177
    ... information related to the impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverable on net unrealized securities gains/losses included in AOCI. See Note 16 for additional information regarding the Company's cash flow hedges. For the years ended December 31, 2014, 2013...

  • Page 178
    ..., and issuance of shares vested under the Ameriprise Financial Franchise Advisor Deferred Compensation Plan. For the year ended December 31, 2012, the Company reacquired 0.3 million shares of its common stock with an aggregate value of $21 million from a total return swap used to economically hedge...

  • Page 179
    ...directly to surplus. Government debt securities of $5 million and $6 million at December 31, 2014 and 2013, respectively, held by the Company's life insurance subsidiaries were on deposit with various states as required by law. Ameriprise Certificate Company (''ACC'') is registered as an investment...

  • Page 180
    ... in the Company's effective tax rate in 2014 compared to 2013 is primarily the result of an increase in net income attributable to noncontrolling interests and an increase in foreign tax credits, as well as a $17 million benefit in 2014 related to the completion of an Internal Revenue Service (''IRS...

  • Page 181
    ...31, 2014 Deferred income tax assets Liabilities for policyholder account balances, future policy benefits and claims Deferred compensation Investment related Loss carryovers and tax credit carryforwards Other Gross deferred income tax assets Less: valuation allowance Total deferred income tax assets...

  • Page 182
    ... payments at the time of retirement or termination under applicable labor laws or agreements. The components of the net periodic benefit cost for all pension plans were as follows: Years Ended December 31, 2014 Service cost Interest cost Expected return on plan assets Amortization of prior service...

  • Page 183
    ... in the Consolidated Balance Sheets, which equal the funded status of the Company's pension plans: December 31, 2014 Benefit liability Benefit asset Net amount recognized $ $ (in millions) (178) $ 14 (164) $ 2013 (136) 4 (132) The Company complies with the minimum funding requirements in all...

  • Page 184
    ... used to determine net periodic benefit cost for pension plans were as follows: 2014 Discount rates Rates of increase in compensation levels Expected long-term rates of return on assets 4.06% 4.38 7.58 2013 3.45% 4.36 7.62 2012 4.15% 4.27 7.69 In developing the expected long-term rate of return...

  • Page 185
    ... 2013 Asset Category Equity securities: U.S. large cap stocks U.S. small cap stocks Non-U.S. large cap stocks Non-U.S. small cap stocks Emerging markets Debt securities: U.S. investment grade bonds U.S. high yield bonds Non-U.S. investment grade bonds Real estate investment trusts Hedge funds Pooled...

  • Page 186
    ...on plan assets: Relating to assets still held at the reporting date Purchases Sales Balance at December 31, 2013 Actual return on plan assets: Relating to assets still held at the reporting date Purchases Sales Balance at December 31, 2014 The Company's pension plans expect to make benefit payments...

  • Page 187
    ... comprehensive income (loss) related to the Company's defined benefit plans: 2014 Net unrealized defined benefit losses at January 1 Net gains (losses) Prior service credit Income tax (provision) benefit Net unrealized defined benefit losses at December 31 $ (46) (37) (1) 13 (71) 2013 (in millions...

  • Page 188
    ...'s life and annuity products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2014, these guarantees range up to 5%. The Company is required by law to be a member of the guaranty fund association in every state where it is licensed to do business. In the event of...

  • Page 189
    ...investment personnel's potential access and use of material non-public information, real estate investment trusts, insurance products, and financial advice offerings; supervision of the Company's financial advisors; administration of insurance claims; security of client information; and front office...

  • Page 190
    ...exception of a single allegation related to certain coverage determinations made under long term care insurance policies issued between 1989-1992. An administrative hearing on this remaining allegation concluded in November 2014. The Company cannot reasonably estimate the range of loss, if any, that...

  • Page 191
    ...and returned all funds to its clients. The Company also sold Ameriprise Bank's consumer loan portfolio to affiliates of Ameriprise Bank and Ameriprise Bank's credit card account portfolio to Barclays. The Asset Management segment provides investment advice and investment products to retail, high net...

  • Page 192
    ... issues insurance policies through its life insurance subsidiaries and the Property Casualty companies. The primary sources of revenues for this segment are premiums, fees, and charges that the Company receives to assume insurancerelated risk. The Company earns net investment income on owned assets...

  • Page 193
    ... Ended December 31, 2014 2013 (in millions) 2012 Operating earnings: Advice & Wealth Management Asset Management Annuities Protection Corporate & Other Total segment operating earnings Net realized gains Net income (loss) attributable to noncontrolling interests Market impact on variable annuity...

  • Page 194
    ...) 2014 12/31 Net revenues Income from continuing operations before income tax provision Income from continuing operations Income (loss) from discontinued operations, net of tax Net income Less: Net income (loss) attributable to noncontrolling interests Net income attributable to Ameriprise Financial...

  • Page 195
    ... the Treadway Commission. Based on management's assessment and those criteria, we believe that, as of December 31, 2014, the Company's internal control over financial reporting is effective. PricewaterhouseCoopers LLP , the Company's independent registered public accounting firm, has issued an audit...

  • Page 196
    ...July 2003. He is an advisor to the March of Dimes and previously served on the boards of the American Council of Life Insurers, The Financial Services Roundtable, Tech Data Corporation and the March of Dimes. Walter S. Berman - Executive Vice President and Chief Financial Officer Mr. Berman (72) has...

  • Page 197
    ... time, Mr. Sweeney served as President-Advice and Wealth Management, Products and Services since May 2009 and as President-Financial Planning, Products and Services since 2005. Prior to that, Mr. Sweeney served as Senior Vice President and General Manager of Banking, Brokerage and Managed Products...

  • Page 198
    ... - Share-Based Compensation to our Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K. The non-shareholder approved plans consist of the Ameriprise Financial 2008 Employment Incentive Equity Award Plan, the Ameriprise Advisor Group Deferred Compensation Plan and...

  • Page 199
    ...our equity compensation plans can be found in Note 17 to our Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K. Information concerning the market for our common shares and our shareholders can be found in Part II, Item 5 of this Annual Report on Form 10...

  • Page 200
    ... and stead, to sign and affix the undersigned's name as such director and/or officer of said corporation to an Annual Report on Form 10-K or other applicable form, and all amendments thereto, to be filed by such corporation with the Securities and Exchange Commission, Washington, D.C., under the...

  • Page 201
    Date: February 24, 2015 By /s/ Amy DiGeso Amy DiGeso Director Date: February 24, 2015 By /s/ Lon R. Greenberg Lon R. Greenberg Director Date: February 24, 2015 By /s/ Siri S. Marshall Siri S. Marshall Director Date: February 24, 2015 By /s/ Jeffrey Noddle Jeffrey Noddle Director Date: ...

  • Page 202
    ... Independent Registered Public Accounting Firm on Financial Statement Schedule To the Board of Directors and Shareholders of Ameriprise Financial, Inc.: Our audits of the consolidated financial statements and of the effectiveness of internal control over financial reporting referred to in our report...

  • Page 203
    Schedule I - Condensed Financial Information of Registrant (Parent Company Only) Condensed Statements of Operations ...Condensed Statements of Comprehensive Income ...Condensed Balance Sheets ...Condensed Statements of Cash Flows ...Notes to Condensed Financial Information of Registrant ...F-3 F-4 ...

  • Page 204
    ... Statements of Operations (Parent Company Only) Years Ended December 31, 2014 Revenues Management and financial advice fees Distribution fees Net investment income Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Benefits, claims, losses and settlement...

  • Page 205
    ... service credit Net income (loss) arising during the period Total defined benefit plans Total other comprehensive income (loss), net of tax Total comprehensive income See Notes to Condensed Financial Information of Registrant. $ $ 1,619 (40) 345 (25) (189) 131 - 1 1 (1) (24) (25) 67 1,686 $ 2013...

  • Page 206
    ... Financial Information of Registrant Condensed Balance Sheets (Parent Company Only) December 31, 2014 2013 (in millions, except share amounts) Assets Cash and cash equivalents Investments Loans to subsidiaries Due from subsidiaries Receivables Land, buildings, equipment, and software, net of...

  • Page 207
    ... purchased options with deferred premiums Issuances of debt, net of issuance costs Repayments of debt Loans from subsidiaries Repayment of loans from subsidiaries Exercise of stock options Excess tax benefits from share-based compensation Other, net Net cash used in financing activities Net increase...

  • Page 208
    .... The results of Securities America have been presented as loss from discontinued operations, net of tax for all periods presented. 3. Debt All of the debt of Ameriprise Financial is borrowings of the Parent Company, except as indicated below. • • At both December 31, 2014 and 2013, the debt of...

  • Page 209
    ...2008). Ameriprise Financial Performance Cash Unit Plan Supplement to the Long Term Incentive Award Program Guide (incorporated by reference to Exhibit 10.1 of the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 2, 2011). Ameriprise Financial Form of Award Certificate - Performance Cash...

  • Page 210
    ... Certificate - Performance Share Unit Plan Award (incorporated by reference to Exhibit 10.4 of the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 2, 2011). Ameriprise Financial Deferred Share Plan for Outside Directors, as amended and restated effective December 3, 2014. CEO Security...

  • Page 211
    ...index of common stocks, is frequently used as a general measure of market performance. The Index reflects reinvestment of all distributions and changes in market prices, but excludes brokerage commissions or other fees. The S&P 500 Financials Index measures the performance of financial components of...

  • Page 212
    General Information Executive Offices Ameriprise Financial Center 707 2nd Avenue South Minneapolis, MN 55474 612.671.3131 7 World Trade Center 250 Greenwich Street, Suite 3900 New York, NY 10007 Information Available to Shareholders Copies of our company's Annual Report on Form 10-K, proxy ...

  • Page 213
    ...Officer Neal Maglaque President, Advice & Wealth Management Business Development and Chief Operating Officer Deirdre D. McGraw Executive Vice President, Marketing, Corporate Communications and Community Relations Colin Moore Executive Vice President, Global Chief Investment Officer Joseph E. Sweeney...

  • Page 214
    Financial Planning | Retirement | Investments | Insurance ameriprise.com © 2015 Ameriprise Financial, Inc. All rights reserved. 400425 L (3/15)