Ameriprise 2014 Annual Report Download - page 95

The following table presents the segment pretax operating impacts on our revenues and expenses attributable to unlocking:
Years Ended December 31,
2013 2012
Segment Pretax Operating Increase (Decrease) Annuities Protection Annuities Protection
(in millions)
Other revenues $ — $ (18) $ — $ (41)
Benefits, claims, losses and settlement expenses 21 (4) (32) (14)
Amortization of DAC (81) (3) 41 (14)
Interest credited to fixed accounts — — 2 —
Total expenses (60) (7) 11 (28)
Total $ 60 $ (11) $ (11) $ (13)
The operating impact of unlocking for 2012 included a $43 million benefit, net of DAC and DSIC amortization, from an
adjustment to the model which values the reserves related to living benefit guarantees primarily attributable to prior
periods.
Advice & Wealth Management
The following table presents the changes in wrap account assets and average balances for the years ended December 31:
2013 2012
(in billions)
Beginning balance $ 124.6 $ 103.4
Net flows 13.1 9.6
Market appreciation and other 15.8 11.6
Ending balance $ 153.5 $ 124.6
Advisory wrap account assets ending balance(1) $ 152.6 $ 124.2
Average advisory wrap account assets(2) $ 138.2 $ 115.0
(1) Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue
earned on wrap accounts. Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.
(2) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.
Wrap account assets increased $28.9 billion, or 23%, during the year ended December 31, 2013 due to net inflows of
$13.1 billion and market appreciation and other of $15.8 billion. Wrap account net inflows increased $3.5 billion, or 36%,
compared to the prior year reflecting higher advisor productivity, experienced advisor recruiting and investor confidence.
Average advisory wrap account assets increased $23.2 billion, or 20%, compared to the prior year due to net inflows and
market appreciation.
The following table presents the results of operations of our Advice & Wealth Management segment on an operating basis:
Years Ended
December 31,
2013 2012 Change
(in millions)
Revenues
Management and financial advice fees $ 2,039 $ 1,737 $ 302 17%
Distribution fees 2,095 1,879 216 11
Net investment income 127 233 (106) (45)
Other revenues 65 64 1 2
Total revenues 4,326 3,913 413 11
Banking and deposit interest expense 31 40 (9) (23)
Total net revenues 4,295 3,873 422 11
Expenses
Distribution expenses 2,641 2,321 320 14
Interest and debt expense 6 9 (3) (33)
General and administrative expense 1,056 1,109 (53) (5)
Total expenses 3,703 3,439 264 8
Operating earnings $ 592 $ 434 $ 158 36%
Our Advice & Wealth Management segment pretax operating earnings, which exclude net realized gains or losses,
increased $158 million, or 36%, to $592 million for the year ended December 31, 2013 compared to $434 million for
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