Ameriprise 2014 Annual Report Download - page 149

the Company’s catastrophe reinsurance has a limit of $155 million per event and the Company retains $20 million per
event. The Company also cedes 80% of every personal 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 2013 2012
(in millions)
Written premiums
Direct $ 1,025 $ 900 $ 814
Ceded (17) (16) (13)
Total net written premiums $ 1,008 $ 884 $ 801
Earned premiums
Direct $ 979 $ 868 $ 795
Ceded (17) (16) (14)
Total net earned premiums $ 962 $ 852 $ 781
Cost of insurance and administrative charges on UL, VUL and IUL insurance are reflected in other revenues and were net
of reinsurance ceded of $94 million, $87 million and $79 million for the years ended December 31, 2014, 2013 and
2012, respectively.
Reinsurance recovered from reinsurers was $260 million, $229 million and $201 million for the years ended
December 31, 2014, 2013 and 2012, respectively. Reinsurance contracts do not relieve the Company from its primary
obligation to policyholders.
Receivables included $2.3 billion and $2.2 billion of reinsurance recoverables as of December 31, 2014 and 2013,
respectively, including $1.8 billion and $1.7 billion related to LTC risk ceded to Genworth, respectively. Included in
policyholder account balances, future policy benefits and claims were $575 million and $597 million related to assumed
reinsurance arrangements as of December 31, 2014 and 2013, respectively.
8. Goodwill and Other Intangible Assets
Goodwill and intangible assets deemed to have indefinite lives are not amortized but are instead subject to impairment
tests. There were no impairments for the years ended December 31, 2014, 2013 and 2012.
The changes in the carrying amount of goodwill reported in the Company’s main operating segments were as follows:
Advice &
Wealth Asset
Management Management Annuities Protection Consolidated
(in millions)
Balance at January 1, 2013 $ 253 $ 830 $ 46 $ 45 $ 1,174
Foreign currency translation — 5 — — 5
Purchase price adjustments (1) (14) — — (15)
Balance at December 31, 2013 252 821 46 45 1,164
Foreign currency translation — (19) — — (19)
Purchase price adjustments — 9 — — 9
Balance at December 31, 2014 $ 252 $ 811 $ 46 $ 45 $ 1,154
As of December 31, 2014 and 2013, the carrying amount of indefinite-lived intangible assets included $630 million and
$631 million, respectively of investment management contracts. As of both December 31, 2014 and 2013, the carrying
amount of indefinite-lived intangible assets included $67 million of trade names.
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