Ameriprise 2014 Annual Report Download - page 90

Expenses
Total expenses, which exclude the market impact on indexed universal life benefits (net of hedges and the related DAC
amortization), increased $191 million, or 10%, to $2.0 billion for the year ended December 31, 2014 compared to
$1.9 billion for the prior year primarily due to higher benefits, claims, losses and settlement expenses related to our auto
and home business.
Benefits, claims, losses and settlement expenses, which exclude the market impact on indexed universal life benefits (net
of hedges), increased $164 million, or 13%, to $1.4 billion for the year ended December 31, 2014 compared to
$1.3 billion for the prior year due to a $163 million increase in provision for estimated losses related to our auto and
home business reflecting the impact of growth in exposures from an 11% increase in policies in force, an increase in
catastrophe losses reflecting the growth in exposures and the extremely severe winter and spring weather during 2014,
and adverse development in the 2013 and prior accident years auto liability coverage observed during the first quarter of
2014 resulting in a $30 million increase to prior accident year loss reserves. Later in 2014, further adverse loss
development was observed primarily in the 2014 auto book of business which resulted in a $60 million increase to loss
reserves for estimated losses including IBNR. Catastrophe losses were $66 million for the year ended December 31, 2014
compared to $42 million for the prior year. The 2015 accident year non-catastrophe auto loss development is expected to
trend approximately level with the 2014 accident year loss experience.
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,
2014 2013 Change
(in millions)
Revenues
Distribution fees $1$1$— —%
Net investment income (loss) (6) 8 (14) NM
Other revenues 96350
Total revenues 4 15 (11) (73)
Banking and deposit interest expense — — — —
Total net revenues 4 15 (11) (73)
Expenses
Distribution expenses 11——
Interest and debt expense 21 33 (12) (36)
General and administrative expense 212 210 2 1
Total expenses 234 244 (10) (4)
Operating loss $ (230) $ (229) $ (1) —%
NM Not Meaningful.
Our Corporate & Other segment pretax operating loss excludes net realized gains or losses and the impact of consolidating
CIEs. Our Corporate & Other segment pretax operating loss was $230 million for the year ended December 31, 2014
compared to $229 million for the prior year. Net investment income (loss) was a loss of $6 million for the year ended
December 31, 2014 compared to income of $8 million for the prior year due to a $13 million increase in losses
associated with affordable housing partnerships. Interest and debt expense decreased $12 million, or 36%, to $21 million
for the year ended December 31, 2014 compared to $33 million for the prior year primarily due to $19 million in costs in
2013 related to the early redemption of our senior notes due 2015, partially offset by expenses in 2014 related to the
early redemption of our senior notes due 2039. General and administrative expense for the year ended December 31,
2014 included a provision for potential resolution of a regulatory matter regarding certain historical events and processes
at one of our ongoing lines of business, which was partially offset by lower investment spending compared to the prior
year.
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