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Ameriprise Financial
Annual Report

Table of contents

  • Page 1
    Ameriprise Financial Annual Report

  • Page 2
    ...$771 Weighted average common shares outstanding - diluted 184.2 195.0 207.1 Cash dividends paid per common share $2.59 $2.26 $2.01 Common stock shares repurchased 13.9 11.8 17.8 This Annual Report to Shareholders contains certain non-GAAP financial measures that management believes best...

  • Page 3
    Dear fellow shareholders, Ten years ago, Ameriprise Financial debuted as an independent public company with a new brand and a proud legacy of serving clients' long-term financial needs. From the strength of our reputation to our growth in assets and increasingly global reach, Ameriprise has ...

  • Page 4
    ... we had our own financial plan, made good decisions, managed conditions. Revenue growth was tempered as assets under management and administration declined due to higher equity market volatility, and client activity naturally slowed. Given that we operate in markets around the world, the strong...

  • Page 5
    ...of Ameriprise Financial common stock declined during the year, over the past decade long-term shareholders have been rewarded with one of the best returns in financial services. Advice & Wealth Management - satisfying clients' needs, providing strong service and attracting high-quality advisors Our...

  • Page 6
    ... will meet with them personally. This reinforces the power of the human perspective and interaction when making saving, investing and retirement planning Client assets in fee-based investment advisory accounts $ in billions Operating net revenue per advisor $ in thousands 2015 2014 2013 2012 2011...

  • Page 7
    ...nationally in September with primetime TV spots, hundreds of thousands of views on YouTube, engaging online ads and relevant content. Our Be Brilliant. brand platform is more than just a tagline - it illustrates the everyday moments of brilliance clients can realize by working with the right advisor...

  • Page 8
    ... RiverSource advicebased solutions Strategic acquisitions: Declined government Strategic acquisition: bail-out Announced philanthropic partnership: Began MORE WITHIN REACH® brand platform Advanced $700 million to meet clients' immediate cash needs during financial crisis 6 | Annual Report 2015

  • Page 9
    ... anniversary of our founding firm, Investors Syndicate Launched Total View, a client account aggregation tool Launched: Covering essentials ® Repositioned Ameriprise Bank Named one of the country's most civicminded companies Introduced new global asset management brand: Annual Report 2015 | 7

  • Page 10
    ....com making it easy for clients to access their information from multiple types of devices. And we further strengthened our wealth results in our Advice & Wealth Management business. In 2015, client net inflows in feebased investment advisory accounts were more than $11 billion and overall advisor...

  • Page 11
    ... from lower equity markets on annuity account balances and the outflows from a closed book of variable annuities We did experience higher life insurance claims in 2015 that increased expenses, but the business remains sound. In Auto and Home, we continue to earn high policyholder satisfaction...

  • Page 12
    .... Recently, FE Trustnet, a U.K. trade publication, named Columbia Threadneedle as the top-performing U.K. fund group over the past decade. Maintaining a broad and high-performing product line is essential to meeting our clients' needs and growing assets under management. In 2015, we took steps to...

  • Page 13
    ... and investors' understanding of Columbia Threadneedle. In terms of financials, the decline in assets under management pressured revenues, but consistent with our expense discipline, we managed expenses well, delivered good earnings and generated a competitive adjusted net pretax operating margin...

  • Page 14
    ... and Asset Management Annuities & Protection (Data excludes Corporate & Other segment results) 2011 2012 2013 2014 2015 Dividends paid Common stock share repurchases As we've grown over the past 10 years, we've orchestrated a strategic transformation of Ameriprise to generate more of our operating...

  • Page 15
    ..., and for the second consecutive year, Ameriprise earned the Military Friendly designation for helping transitioning service members seeking employment. I am grateful to work with people who care about the good we can do for others, both at work and in our communities. Annual Report 2015 | 13

  • Page 16
    ... the U.S., the Department of Labor will soon introduce a third standard of care for retirement accounts. The industry, including Ameriprise, offered extensive perspective and input to inform the rule. advisors and clients through these changes. We believe that our financial advice value proposition...

  • Page 17
    ... long-term goals; and invested strongly in the business to deliver long-term value to our shareholders. We strengthened Ameriprise as a U.S. wealth management leader; established the firm as a global asset manager; and differentiated our insurance and annuity businesses through their risk management...

  • Page 18
    ... 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 FINRA and SIPC. Investment advisory services...

  • Page 19
    Ameriprise Financial, Inc. 2015 Form 10-K Annual Report 2015 | 17

  • Page 20

  • Page 21
    ...) 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 22
    ... Matters and Issuer Purchases of Equity Securities ...Selected Financial Data ...Management's Discussion and Analysis of Financial Condition and Results of Operations ...Quantitative and Qualitative Disclosures About Market Risk ...Financial Statements and Supplementary Data ...Changes in and...

  • Page 23
    ... strategy: Wealth Management and Asset Management. Our wealth management capabilities are centered on the long-term, personal relationships between our clients and our financial advisors (our ''advisors''). Through our advisors, we offer financial planning, products and services designed to be used...

  • Page 24
    ..., South America and Africa. In addition, we continue to pursue opportunities to leverage the collective capabilities of our global asset management business in order to enhance our current range of investment solutions, to develop new solutions that are responsive to client demand in an increasingly...

  • Page 25
    ... acquired the business of Threadneedle Asset Management Holdings. On September 30, 2005, American Express consummated a distribution of the shares of AEFC to American Express shareholders, at which time we became an independent, publicly traded company and changed our name to ''Ameriprise Financial...

  • Page 26
    ... Financial Services, Inc. J. & W. Seligman & Co. Incorporated Ameriprise Asset Management Holdings GmbH Threadneedle Asset Management Holdings SÃ rl Columbia Management Investment Distributors, Inc. Ameriprise Certificate Company IDS Property Casualty Insurance Company RiverSource Life...

  • Page 27
    ... to individuals and businesses Offers personal trust and related services IDS Property Casualty Insurance Company (''IDS Property Casualty'' or ''Ameriprise Auto & Home'') Ameriprise Certificate Company Ameriprise Trust Company (''ATC'') Ameriprise National Trust Bank (formerly Ameriprise Bank, FSB...

  • Page 28
    ... 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 29
    ...and sell securities, obtain independent research and information about a wide variety of securities, and use self-directed asset allocation and other financial planning tools. We offer exchange traded mutual funds, 529 plans, public non-exchange traded real estate investment trusts, structured notes...

  • Page 30
    ... 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. The performance...

  • Page 31
    ... financial advisors. Retail products include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds (''ETFs'') and variable product funds underlying insurance and annuity separate accounts. Institutional asset management services are designed to meet specific client objectives...

  • Page 32
    ...of investment objectives. The Columbia Management family of funds also uses sub-advisers to diversify the product offerings it makes available to investors on its variable product platform. At December 31, 2015, our U.S. retail mutual funds, ETFs and U.S. closed-end funds had total managed assets of...

  • Page 33
    ... 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. Our fixed income team manages the general account assets to produce a consolidated and targeted rate of return on investments based on...

  • Page 34
    ... institutional clients, including pension plans, employee savings plans, foundations, sovereign wealth funds, endowments, corporations, banks, trusts, governmental entities, high-net-worth individuals and not-for-profit organizations. We provide investment management services for insurance companies...

  • Page 35
    ... markets decline. Similarly, our guaranteed benefit reserves will generally increase when interest rates decline. RiverSource variable annuities provide us with fee-based revenue in the form of mortality and expense risk fees, marketing support and administrative fees, fees charged for optional...

  • Page 36
    ...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 37
    ...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 38
    ... new policy sales of our Property Casualty companies in 2015. Among our other alliances, we market our property casualty products to customers of Ford Motor Credit Company and offer personal home insurance products to customers of the Progressive Group. We offer RiverSource life insurance products...

  • Page 39
    ... financial services and discount brokerage services, usually with lower levels of service, to individual clients. Our Advice & Wealth Management segment competes with securities broker-dealers, independent broker-dealers, financial planning firms, registered investment advisors, insurance companies...

  • Page 40
    ...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 41
    ...Co. of New York ➢ Ameriprise Captive Insurance Company ➢ IDS Property Casualty Insurance Company: Ameriprise Auto & Home Insurance Agency, Inc.; and Ameriprise Insurance Company Regulator Minnesota Department of Commerce is domiciliary regulator New York State Department of Financial Services is...

  • Page 42
    Our financial advisors service clients who hold assets in IRAs and employer-sponsored retirement plan accounts. The Employee Retirement Income Security Act of 1974, as amended (''ERISA'') and related provisions of the Internal Revenue Code impose duties on persons who are fiduciaries under ERISA, ...

  • Page 43
    ...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 44
    ... an insurer create and file, annually, its Own Risk Solvency Assessment, which is a complete self-assessment of its risk management functions and capital adequacy. These laws have now been enacted by the domiciliary states of RiverSource Life and the Property Casualty companies: Minnesota, New York...

  • Page 45
    ...com. Investors can also access the website through our main website at ameriprise.com by clicking on the ''Investor Relations'' link located at the bottom of our homepage. We use our Investor Relations website to announce financial and other information to investors and to make available SEC filings...

  • Page 46
    ...fluctuation based on market conditions and client activity. Downturns and volatility in equity markets can have, and have had, an adverse effect on the revenues and returns from our asset management services, retail advisory accounts and variable annuity contracts. Because the profitability of these...

  • Page 47
    ... and thus lower profitability or face a decline in sales and greater loss of existing contracts and related assets. In addition, increases in market interest rates may cause increased policy surrenders, withdrawals from life insurance policies and annuity contracts and requests for policy loans, as...

  • Page 48
    ..., claims-paying ability and credit ratings. Our competitors include broker-dealers, banks, asset managers, insurers and other financial institutions. Certain of our competitors offer web-based financial services and discount brokerage services to individual clients. Many of our businesses face...

  • Page 49
    ... portion of the sales of our mutual funds, annuities, face-amount certificates and insurance products. In addition, the investment performance of our asset management products and services and the retention of our products and services by our clients are dependent upon the strategies and decisioning...

  • Page 50
    ...impact our revenues and profitability. Investment performance is a key competitive factor for our retail and institutional asset management products and services. Strong investment performance helps to ensure the retention of our products and services by our clients and creates new sales of products...

  • Page 51
    ... 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 values by management in...

  • Page 52
    ... 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 53
    ... any rate increases that we may seek. Unexpected changes in the severity or frequency of claims may affect the profitability of our auto and home insurance business. Recorded claim reserves in the auto and home insurance business are based on our best estimates of losses, both reported and incurred...

  • Page 54
    ... record a charge to increase benefit reserves. For more information regarding DAC, see Part II, Item 7 of this Annual Report on Form 10-K under the heading ''Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates - Deferred...

  • Page 55
    ... of services to us, are provided with access to our systems and information pertaining to our business or our clients, to meet certain information security standards. Changes in our client base, the mix of assets under management or administration and business model or technology platform changes...

  • Page 56
    ... 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 57
    ... to changes in the U.S. dollar equivalent of earnings and equity of these operations, may adversely affect our results of operations, cash flows or financial condition. In addition, conducting and increasing our international operations subjects us to new risks that, generally, we have not faced in...

  • Page 58
    ... establishing liabilities for expected claims, acquiring insurance and reinsurance and developing business continuity plans, will be effective. Legal, Regulatory and Tax Risks Legal and regulatory actions are inherent in our businesses and could result in financial losses or harm our businesses. We...

  • Page 59
    ... of the fees we charge for our products and services resulting from regulatory initiatives or proceedings could reduce our revenues and/or earnings. Fees paid by mutual funds in accordance with plans and agreements of distribution adopted under Rule 12b-1 promulgated under the Investment Company Act...

  • Page 60
    ...into law in 2010 called for sweeping changes in the supervision and regulation of the financial services industry designed to provide for greater oversight of financial industry participants, reduce risk in banking practices and in securities and derivatives trading, enhance public company corporate...

  • Page 61
    ... corporate tax rate coupled with reductions in tax preferred items. Potential tax reform may also affect the U.S. tax rules regarding international operations. Any changes could have a material impact on our income tax expense and deferred tax balances. Risks Relating to Our Common Stock The market...

  • Page 62
    ... securities and insurance rating agency processes and standards applicable to our businesses and the financial services industry; and (vi) changes in general economic or market conditions. Stock markets in general have experienced volatility that has often been unrelated to the operating performance...

  • Page 63
    ... other locations, including the executive offices that we maintain in New York City and branch offices for our employee advisors throughout the United States. In Gurgaon, India we lease offices containing approximately 106,000 square feet which are used primarily in the support of our businesses in...

  • Page 64
    ... Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K. Information regarding our equity compensation plans can be found in Part III, Item 12 of this Annual Report on Form 10-K. Information comparing the cumulative total shareholder return on our common stock...

  • Page 65
    ...2015 Balance Sheet Data: Investments(1) Separate account assets Total 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...

  • Page 66
    ... model changes that more than offset the difference between our previously assumed interest rates versus the continued low interest rate environment. In addition, our annual review of our closed long term care business resulted in no loss recognition as better-than-expected premium increases, which...

  • Page 67
    ... accounting principles (''GAAP''), management believes that operating measures, which exclude net realized investment gains or losses, net of the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on variable annuity guaranteed benefits...

  • Page 68
    ...operations attributable to Ameriprise Financial Add: Integration/restructuring charges, net of tax(1) Add: Market impact on variable annuity guaranteed benefits, net of tax(1) Add: Market impact on indexed universal life benefits, net of tax(1) Add: Market impact of hedges on investments, net of tax...

  • Page 69
    ...to surrender, make withdrawals from and make deposits to their contracts), mortality levels, client asset value growth rates (based on equity and bond market performance), variable annuity benefit utilization and interest margins (the spread between earned rates on invested assets and rates credited...

  • Page 70
    ...and VUL policies and the embedded derivatives related to variable annuity contracts, equity indexed annuities (''EIA'') and indexed universal life (''IUL'') insurance. Reserves for traditional long-duration products are established to provide adequately for future benefits and expenses for term life...

  • Page 71
    ...guaranteed benefits and the fair value of embedded equity options. Liabilities for indexed accounts of IUL products are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options. The majority of the variable annuity contracts offered...

  • Page 72
    ...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 73
    ... service fees). Distribution fees also include amounts received under marketing support arrangements for sales of mutual funds and other companies' products, such as through our wrap accounts, as well as surrender charges on fixed and variable universal life insurance and annuities. Net Investment...

  • Page 74
    ... client assets for which we provide investment management services, such as the assets of the Columbia Management funds and Threadneedle funds, assets of institutional clients and assets of clients in our advisor platform held in wrap accounts as well as assets managed by sub-advisers selected...

  • Page 75
    ... 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 and settlement expenses Amortization of deferred...

  • Page 76
    ... expenses Total(1) (1) 2015 $ 2014 (in millions) (3) $ - 8 (29) 5 (58) 15 (43) (29) 6 8 14 $ (43) $ 48 Includes a $6 million net benefit related to the market impact on variable annuity guaranteed benefits and indexed universal life benefits for the year ended December 31, 2015. Net Revenues...

  • Page 77
    ...the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in an expense in 2015 compared to a benefit in 2014. Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance...

  • Page 78
    ... pretax operating impacts on our revenues and expenses attributable to unlocking: Years Ended December 31, 2015 Segment Pretax Operating Increase (Decrease) Premiums Other revenues Total revenues Benefits, claims, losses and settlement expenses Amortization of DAC Total expenses Total $ Annuities...

  • Page 79
    ... of revenue earned on wrap accounts. Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee. 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...

  • Page 80
    ... increase in distribution expenses driven by higher advisor compensation due to growth in wrap account assets. Asset Management Fee waivers have been provided to the Columbia Money Market Funds (the ''Funds'') by Columbia Management and certain other subsidiaries performing services for the Funds...

  • Page 81
    ...that invest in both equity and fixed income. Aggregated Threadneedle data includes funds on the Threadneedle 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: December 31, 2015...

  • Page 82
    ... balance and all months in the current period. The following tables present the changes in Columbia and Threadneedle managed assets: Years Ended December 31, 2015 Columbia Managed Assets Rollforward Retail Funds Beginning assets Mutual fund inflows Mutual fund outflows Net VP/VIT fund flows Net new...

  • Page 83
    ...to net outflows and distributions. Columbia retail net outflows of $2.6 billion during the year ended December 31, 2015 included $1.3 billion related to a client's decision in the third quarter to exit its portfolio due to asset allocation and $2.0 billion of outflows from a former parent affiliated...

  • Page 84
    ... operations of our Asset Management segment on an operating basis: Years Ended December 31, 2015 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...

  • Page 85
    ... 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 and settlement expenses Amortization of deferred...

  • Page 86
    ...rates and limited new sales due to low interest rates. Benefits, claims, losses and settlement expenses, which exclude the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC amortization) and the DSIC offset to net realized investment gains or losses, increased...

  • Page 87
    ... 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 and settlement expenses Amortization of deferred...

  • Page 88
    ... benefit from unlocking. Corporate & Other The following table presents the results of operations of our Corporate & Other segment on an operating basis: Years Ended December 31, 2015 Revenues Distribution fees Net investment loss Other revenues Total revenues Banking and deposit interest expense...

  • Page 89
    ... 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 and settlement expenses Amortization of deferred...

  • Page 90
    ... increase in net realized gains primarily related to calls on fixed income securities. Premiums increased $103 million, or 8%, to $1.4 billion for the year ended December 31, 2014 compared to $1.3 billion for the prior year primarily due to growth in auto and home premiums driven by new policy sales...

  • Page 91
    ... variable annuity guaranteed living benefits liability net of the impact on the related hedge assets resulted in a benefit in 2014 compared to an expense in 2013. Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, fixed...

  • Page 92
    ...to current tax expense and deferred tax assets of approximately $300 million. Results of Operations by Segment Year Ended December 31, 2014 Compared to Year Ended December 31, 2013 Operating earnings is the measure of segment profit or loss management uses to evaluate segment performance. Operating...

  • Page 93
    ... of revenue earned on wrap accounts. Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee. 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...

  • Page 94
    ...compensation due to strong growth in client assets. Asset Management The following table presents ending balances and average managed assets: December 31, 2014 Columbia managed assets Threadneedle managed assets Less: Sub-advised eliminations Total managed assets (1) Average(1) December 31, Change...

  • Page 95
    ... the changes in Columbia and Threadneedle managed assets: Years Ended December 31, 2014 Columbia Managed Assets Rollforward Retail Funds Beginning assets Mutual fund inflows Mutual fund outflows Net VP/VIT fund flows Net new flows Reinvested dividends Net flows Distributions Market appreciation...

  • Page 96
    ... Threadneedle Managed Assets Rollforward Retail Funds Beginning assets Mutual fund inflows Mutual fund outflows Net new flows Reinvested dividends Net flows Distributions Market appreciation Foreign currency translation(1) Other Total ending assets Institutional Beginning assets Inflows Outflows Net...

  • Page 97
    ...management driven by equity market appreciation, partially offset by retail fund distributions and a $30 million gain on the sale of Threadneedle's strategic business investment in Cofunds in the prior year. Net Revenues Net revenues, which exclude net realized investment gains or losses, increased...

  • Page 98
    ... 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 and settlement expenses Amortization of deferred...

  • Page 99
    ... by an increase in expense of $26 million related to higher reserve funding driven by the impact of higher fees from variable annuity guarantee sales in the prior year where the fees start on the first anniversary date. Benefits, claims, losses and settlement expenses for the year ended December 31...

  • Page 100
    ... 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 and settlement expenses Amortization of deferred...

  • Page 101
    ... market would make to reflect an exit price. As a result, we adjust the valuation of variable annuity riders and indexed universal life insurance by updating certain contractholder assumptions, adding explicit margins to provide for profit, risk and expenses, and adjusting the rates used to discount...

  • Page 102
    ... 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 103
    ...the table. 2015 RiverSource Life(1)(2) ACC(3) Columbia Management Investment Advisers, LLC Columbia Management Investment Services Corporation Threadneedle Asset Management Holdings S` arl Ameriprise Trust Company IDS Property Casualty(4) Ameriprise Captive Insurance Company RiverSource Distributors...

  • Page 104
    ... the years ended December 31: 2015 RiverSource Life Ameriprise Bank, FSB(1) ACC Columbia Management Investment Advisers, LLC Columbia Management Investment Services Corporation Threadneedle Asset Management Holdings S` arl(2) Ameriprise Trust Company IDS Property Casualty(3) Ameriprise Holdings, Inc...

  • Page 105
    ... purchases and higher 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. Investing Activities...

  • Page 106
    ..., 2015 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 Operating lease obligations Purchase obligations(6) Interest on long-term debt(7) Total (1) 2016 2017...

  • Page 107
    ... 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 108
    ... 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 variable annuities...

  • Page 109
    ... DAC and DSIC amortization(4) Total variable annuity riders Macro 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 $ (47...

  • Page 110
    ... Risk The variable annuity guaranteed benefits guarantee payouts to the annuity holder under certain specific conditions regardless of the performance of the investment assets. For this reason, when equity prices decline, the returns from the separate account assets coupled with guaranteed benefit...

  • Page 111
    ... portion of variable annuities and variable insurance contracts are based upon the spread between rates earned on assets held and the rates at which interest is credited to accounts. We primarily invest in fixed rate securities to fund the rate credited to clients. We guarantee an interest rate to...

  • Page 112
    ... 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 off-balance sheet deposits at FDIC insured...

  • Page 113
    ...in customer deposits on our Consolidated Balance Sheets. At December 31, 2015, we had $557 million in reserves related to stock market certificates. The equitylinked return to investors creates equity price risk exposure. We seek to minimize this exposure with purchased futures and call spreads that...

  • Page 114
    ... during the terms of the treaties. As of December 31, 2015, our largest reinsurance credit risk is related to a long term care coinsurance treaty with life insurance subsidiaries of Genworth Financial, Inc. See Note 7 to our Consolidated Financial Statements for additional information on reinsurance...

  • Page 115
    ... Benefits and Claims and Separate Account Liabilities ...Variable Annuity and Insurance Guarantees ...Customer Deposits ...Debt ...Fair Values of Assets and Liabilities ...Offsetting Assets and Liabilities ...Derivatives and Hedging Activities ...Share-Based Compensation ...Shareholders' Equity...

  • Page 116
    Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of Ameriprise Financial, Inc.: In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations, comprehensive income, equity, and of cash flows ...

  • Page 117
    ... 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 and settlement expenses Amortization of deferred...

  • Page 118
    ... gains (losses) on securities Net unrealized gains on derivatives Defined benefit plans Total other comprehensive income (loss), net of tax Total comprehensive income Less: Comprehensive income attributable to noncontrolling interests Comprehensive income attributable to Ameriprise Financial See...

  • Page 119
    ...936, respectively, at fair value) Total assets Liabilities and Equity Liabilities: Policyholder account balances, future policy benefits and claims Separate account liabilities Customer deposits Short-term borrowings Long-term debt Debt of consolidated investment entities (includes $6,630 and $6,030...

  • Page 120
    ... of tax Total comprehensive income Net loss reclassified to appropriated retained earnings Dividends to shareholders Noncontrolling interests investments in subsidiaries Distributions to noncontrolling interests Repurchase of common shares Share-based compensation plans Balances at December 31, 2015...

  • Page 121
    ..., withdrawals and cash surrenders Policyholder account balances: Deposits and other additions Net transfers to separate accounts Surrenders and other benefits Cash paid for purchased options with deferred premiums Cash received from purchased options with deferred premiums Issuance of long-term debt...

  • Page 122
    ... investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for under the cost method when the Company owns less than a 20% voting interest and does not exercise significant influence. The Company manages certain VOE property funds that are structured...

  • Page 123
    ... with original maturities of 90 days or less. Investments Available-for-Sale Securities Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in AOCI, net of impacts to DAC, deferred sales inducement costs (''DSIC''), unearned revenue, benefit reserves...

  • Page 124
    ... 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 125
    ... to absorb losses inherent in the total loan portfolio. The allowance is increased through provisions charged to net investment income and reduced/increased by net charge-offs/recoveries. Impaired Loans The Company considers a loan to be impaired when, based on current information and events, it is...

  • Page 126
    ...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 127
    ...operations is recognized in net investment income during the period of change. The equity component of equity indexed annuities (''EIA''), indexed universal life (''IUL'') and stock market certificate obligations are considered embedded derivatives. Additionally, certain annuities contain guaranteed...

  • Page 128
    ... of insurance risk to other insurers under reinsurance agreements. The Company evaluates the financial condition of its reinsurers prior to entering into new reinsurance contracts and on a periodic basis during the contract term. Reinsurance premiums paid and benefits received are accounted for...

  • Page 129
    ... cash flows are consistent with those used for DAC valuation for the same contracts. Changes in the net cost of reinsurance are reflected as a component of other revenues. Reinsurance recoveries are reported as components of benefits, claims, losses and settlement expenses. Insurance liabilities...

  • Page 130
    .... Anticipated premium payments and persistency rates vary by policy form, issue age, policy duration and certain other pricing factors. For term life, whole life, DI and LTC polices, the Company utilizes best estimate assumptions as of the date the policy is issued with provisions for the risk of...

  • Page 131
    ... These charges are deferred as unearned revenue and amortized using estimated gross profits, similar to DAC. The unearned revenue liability is recorded in other liabilities and the amortization is recorded in other revenues. For clients who pay financial planning fees prior to the advisor's delivery...

  • Page 132
    ... 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 and annuities, are recognized when assessed. Interest income is accrued as earned using...

  • Page 133
    ... standard to the Company's consolidated results of operations and financial condition. Fair Value Measurement - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) In May 2015, the FASB updated the accounting standards related to fair value...

  • Page 134
    ... results of operations, financial condition and disclosures. 4. Variable Interest Entities The Company provides asset management services to investment entities which are considered to be VIEs, such as CLOs, hedge funds, property funds and private equity funds (collectively, ''investment entities...

  • Page 135
    ... 2014, the Company consolidated two new property funds with assets of approximately $260 million. The liquidation of properties may occur over several years until the fund is terminated. See the summary of changes in Level 3 assets and liabilities for gross sales and purchases of properties, within...

  • Page 136
    ... of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: Common Stocks Balance, January 1, 2015 Total gains (losses) included in: Net income Other comprehensive loss Purchases Sales Issues Settlements Transfers into Level...

  • Page 137
    Corporate Debt Securities Balance, January 1, 2014 Total gains (losses) included in: Net income Other comprehensive income Purchases Sales Issues Settlements Transfers into Level 3 Transfers out of Level 3 Balance, December 31, 2014 Changes in unrealized gains (losses) included in income relating to...

  • Page 138
    ... the Company or reasonably available to the Company of Level 3 assets and liabilities held by consolidated investment entities: December 31, 2015 Fair Value Other assets (property funds) CLO debt (in millions) $ 2,060 Valuation Technique Discounted cash flow/ market comparables Discounted cash flow...

  • Page 139
    ... for the financial assets and liabilities of the consolidated CLOs. Management believes that the use of the fair value option better matches the changes in fair value of assets and liabilities related to the CLOs. The following table presents the fair value and unpaid principal balance of loans and...

  • Page 140
    ... $ 20 48 379 1,442 702 5,381 7,972 $ 5. Investments The following is a summary of Ameriprise Financial investments: December 31, 2015 Available-for-Sale securities, at fair value Mortgage loans, net Policy and certificate loans Other investments Total $ 2014 (in millions) 28,673 $ 30,027 3,359...

  • Page 141
    ... 31, 2015 and 2014, fixed maturity securities comprised approximately 84% of Ameriprise Financial investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations (''NRSROs''), including Moody's Investors Service (''Moody...

  • Page 142
    ...% of total equity. The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position: December 31, 2015 Less than 12 months Description of Securities Corporate...

  • Page 143
    ...for the year ended December 31, 2013 primarily related to credit losses on non-agency residential mortgage backed securities. See Note 18 for a rollforward of net unrealized investment gains (losses) included in AOCI. Available-for-Sale securities by contractual maturity at December 31, 2015 were as...

  • Page 144
    ... for loan losses was $21 million and $13 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. During the years ended December 31, 2015, 2014 and 2013, the Company purchased $162...

  • Page 145
    .... The 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 December 31, 2015 and...

  • Page 146
    ...policies issued after January 1, 2014, the Company generally reinsures 50% of the death benefit liability. Similarly, the Company reinsures 50% of the death benefit and morbidity liabilities related to its universal life product with long term care benefits. The maximum amount of life insurance risk...

  • Page 147
    ...to LTC risk ceded to Genworth, respectively. Included in policyholder account balances, future policy benefits and claims were $551 million and $575 million related to previously assumed reinsurance arrangements as of December 31, 2015 and 2014, respectively. 8. Goodwill and Other Intangible Assets...

  • Page 148
    ... the Company's variable annuity living benefit withdrawal utilization assumption. The impact for the year ended December 31, 2013 primarily reflected higher than previously assumed interest rates and changes in assumed policyholder behavior. The balances of and changes in DAC were as follows: 2015...

  • Page 149
    ...instruments used to hedge the risk related to EIA. In 2007, the Company discontinued new sales of EIA. Variable Annuities Purchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received...

  • Page 150
    ... auto liability claims and prior year catastrophe reserve development related to Superstorm Sandy. • • Portions of the Company's fixed and variable universal life policies have product features that result in profits followed by losses from the insurance component of the policy. These profits...

  • Page 151
    ...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 to the account value (a ''step-up'') in the case of favorable market performance or by a benefit...

  • Page 152
    ... information related to variable annuity guarantees for which the Company has established additional liabilities: December 31, 2015 Variable Annuity Guarantees by Benefit Type(1) GMDB: Return of premium Five/six-year reset One-year ratchet Five-year ratchet Other Total - GMDB GGU death benefit...

  • Page 153
    ... 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 term and purchasers may participate in increases in the stock market based on...

  • Page 154
    ...Financial Center. See Note 1 for additional information. Long-Term Debt The amounts included in the table above are net of any unamortized discount and premium associated with issuing these notes. In 2015, the Company extinguished $49 million of its junior subordinated notes due 2066 in open market...

  • Page 155
    ...31, 2015, future maturities of Ameriprise Financial long-term debt were as follows: (in millions) 2016 2017 2018 2019 2020 Thereafter Total future maturities $ 11 12 13 313 761 1,545 2,655 $ Short-term Borrowings The Company enters into repurchase agreements in exchange for cash, which it accounts...

  • Page 156
    ...obligations U.S. government and agencies obligations Foreign government bonds and obligations Common stocks Total Available-for-Sale securities Trading securities Separate account assets Investments segregated for regulatory purposes Other assets: Interest rate derivative contracts Equity derivative...

  • Page 157
    ... securities Asset backed securities State and municipal 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...

  • Page 158
    ... in: Net income Other comprehensive loss Purchases Settlements Transfers into Level 3 Transfers out of Level 3 Balance, December 31, 2015 Changes in unrealized gains (losses) relating to assets held at December 31, 2015 included in: Net investment income (1) Total $ 1,990 Trading Securities...

  • Page 159
    ...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 160
    ...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) (1) (2) (3) (4) The nonperformance risk is the spread added to the observable interest rates used in...

  • Page 161
    Assets Cash Equivalents Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their NAV and classified as Level 1. The Company's remaining cash equivalents are classified as Level 2 and measured at amortized...

  • Page 162
    ... 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 benefits plus margins for profit, risk and expenses...

  • Page 163
    ... 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 deposits Separate...

  • Page 164
    ... 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's nonperformance risk specific...

  • Page 165
    ...the Company's broker dealer subsidiary and other financial institutions and are recorded at the amount of cash collateral advanced or received. Securities borrowed and securities loaned are primarily equity securities. The Company's securities borrowed and securities loaned transactions generally do...

  • Page 166
    ... for additional disclosures related to the Company's repurchase agreements and Note 4 for information related to derivatives held by consolidated investment entities. 16. Derivatives and Hedging Activities Derivative instruments enable the Company to manage its exposure to various market risks. The...

  • Page 167
    ... 31, 2015 and 2014, the Company had not sold, pledged or rehypothecated any securities that were accepted as collateral. In addition, at December 31, 2015 and 2014, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company's Consolidated Balance Sheets...

  • Page 168
    ... of Operations: Benefits, Banking and Interest Claims, Net Deposit Credited to Losses and General and Investment Interest Distribution Fixed Settlement Administrative Income Expense Expenses Accounts Expenses Expense (in millions) Year Ended December 31, 2015 Interest rate contracts Equity contracts...

  • Page 169
    The deferred premium associated with certain of the above options is paid or received semi-annually over the life of the option contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options: Premiums Payable 2016 2017 2018 2019 ...

  • Page 170
    ...''), the Ameriprise Advisor Group Deferred Compensation Plan (''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, 2015 Stock option Restricted stock...

  • Page 171
    ... Restated Ameriprise Financial 2005 Incentive Compensation Plan The 2005 ICP , which was amended and approved by shareholders on April 30, 2014, provides for the grant of cash and equity incentive awards to directors, employees and independent contractors, including stock options, restricted stock...

  • Page 172
    ... 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 173
    ... compensation plan under section 409A of the Internal Revenue Code. The Advisor Group Deferral Plan also gives qualifying employee advisors the choice to defer a portion of their base salary or commissions. This deferral can be in the form of Ameriprise Financial stock or other investment options...

  • Page 174
    ... Ended December 31, 2015 Pretax Net unrealized securities losses: Net unrealized securities losses arising during the period(1) Reclassification of net securities gains included in net income(2) Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves...

  • Page 175
    ...-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 176
    ...from continuing operations attributable to Ameriprise Financial Loss from discontinued operations, net of tax Net income attributable to Ameriprise Financial Denominator: Basic: Weighted-average common shares outstanding Effect of potentially dilutive nonqualified stock options and other share-based...

  • Page 177
    ... recorded directly to surplus. Government debt securities of $5 million at both December 31, 2015 and 2014, 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 company under...

  • Page 178
    ... Requirements for asset managers. The Company has four broker-dealer subsidiaries, American Enterprise Investment Services Inc., Ameriprise Financial Services, Inc., RiverSource Distributors, Inc. and Columbia Management Investment Distributors, Inc. The broker-dealers are subject to the net capital...

  • Page 179
    ... net within other assets or other liabilities on the Consolidated Balance Sheets, were as follows: December 31, 2015 Deferred income tax assets Liabilities for policyholder account balances, future policy benefits and claims Deferred compensation Investment related Postretirement benefits Loss...

  • Page 180
    ... The SRP generally parallels the Retirement Plan but offers different payment options. The Company also sponsors unfunded defined benefit postretirement plans that provide health care and life insurance to retired U.S. employees. Net periodic postretirement benefit costs were nil for the years ended...

  • Page 181
    The components of the net periodic benefit cost for pension plans were as follows: Years Ended December 31, 2015 Service cost Interest cost Expected return on plan assets Amortization of prior service costs Amortization of net loss Other Net periodic benefit cost $ 46 27 (40) (1) 9 4 45 2014 (in ...

  • Page 182
    ... projection of asset class return expectations and long-term inflation assumptions. The Company also considered historical returns on the plans' assets. Discount rates are based on yields available on high-quality corporate bonds that would generate cash flows necessary to pay the benefits when due...

  • Page 183
    ... securities, primarily across large cap, small cap and emerging market asset classes. Debt securities are managed to track the performance of common market indices for both U.S. and non-U.S. investment grade bonds as well as a pool of U.S. high yield bonds. Real estate investment trusts are managed...

  • Page 184
    ... Sales Balance at December 31, 2013 Actual return on plan assets: Relating to assets still held at the reporting date Purchases Balance at December 31, 2014 Actual return on plan assets: Relating to assets still held at the reporting date Balance at December 31, 2015 $ Real Estate Investment Trusts...

  • Page 185
    ... is variable and linked to certain performance criteria. Compensation expense related to the employee profit sharing plan was $60 million, $66 million and $69 million in 2015, 2014 and 2013, respectively. 23. Commitments, Guarantees and Contingencies Commitments The Company is committed to pay...

  • Page 186
    ...funds, annuities, equity and fixed income securities, real estate investment trusts, insurance products, and financial advice offerings; supervision of the Company's financial advisors; administration of insurance and annuity claims; security of client information; trading activity; and front office...

  • Page 187
    ... and unaffiliated financial advisors. Retail products include U.S. mutual funds and their 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 188
    ..., as well as expenses for investment management services provided by the Asset Management segment. The Protection segment offers a variety of products to address the protection and risk management needs of the Company's retail clients including life, DI and property casualty insurance. Life and DI...

  • Page 189
    ... Asset Management Annuities Protection Corporate & Other Total segment operating earnings Net realized gains Net income attributable to noncontrolling interests Market impact on variable annuity guaranteed benefits, net Market impact on IUL benefits, net Market impact of hedges on investments...

  • Page 190
    ... to Ameriprise Financial, Inc. common shareholders: Basic Income from continuing operations Loss from discontinued operations Net income Diluted Income from continuing operations Loss from discontinued operations Net income Weighted average common shares outstanding: Basic Diluted Cash dividends...

  • Page 191
    ... changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. The Company's management, with the participation of our Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of the Company's internal control over financial reporting...

  • Page 192
    ..., Global Financial Services of American Express since June 2000. He served as Chairman of American Express Bank Ltd. from September 2000 until April 2005 and served as President and Chief Executive Officer of Travel Related Services International from May 1998 through July 2003. He is an advisor to...

  • Page 193
    ...General Manager of Banking, Brokerage and Managed Products of AEFC since April 2002. Prior thereto, he served as Senior Vice President and Head, Business Transformation, Global Financial Services of American Express from March 2001 until April 2002. Mr. Sweeney is currently on the board of directors...

  • Page 194
    ... Financial Officer and Controller, but also to all other employees of our company) and the Code of Business Conduct for the Members of the Board of Directors may be found by clicking the ''Corporate Governance'' link found on our Investor Relations website at ir.ameriprise.com. You may also access...

  • Page 195
    ...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 196
    ... 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 197
    ...25, 2016 By /s/ Amy DiGeso Amy DiGeso Director Date: February 25, 2016 By /s/ Lon R. Greenberg Lon R. Greenberg Director Date: February 25, 2016 By /s/ Siri S. Marshall Siri S. Marshall Director Date: February 25, 2016 By /s/ Jeffrey Noddle Jeffrey Noddle Director Date: February 25, 2016 By...

  • Page 198
    ...effectiveness of internal control over financial reporting referred to in our report dated February 25, 2016 appearing in this Annual Report to Shareholders of Ameriprise Financial, Inc. on Form 10-K also included audits of the financial statement schedule listed in the index appearing under Item 15...

  • Page 199
    Schedule I - Condensed Financial Information of Registrant (Parent Company Only) Condensed Statements of Operations ...Condensed Balance Sheets ...Condensed Statements of Cash Flows ...Notes to Condensed Financial Information of Registrant ...F-3 F-4 F-5 F-6 F-2

  • Page 200
    ... financial advice fees Distribution fees Net investment income Other revenues Total revenues Expenses Benefits, claims, losses and settlement expenses Interest and debt expense General and administrative expense Total expenses Pretax loss before equity in earnings of subsidiaries Income tax benefit...

  • Page 201
    ...Condensed Financial Information of Registrant Condensed Balance Sheet (Parent Company Only) December 31, 2015 2014 (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 202
    ... options with deferred premiums Issuances of debt, net of issuance costs Repayments of long-term 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 203
    ... fee revenue is reflected in equity in earnings of subsidiaries. The change in fair value of derivatives used to economically hedge exposure to equity price risk of Ameriprise Financial, Inc. common stock granted as part of the Ameriprise Financial Franchise Advisor Deferred Compensation Plan...

  • Page 204
    ... Casualty Insurance Company (''IDS Property Casualty'') entered into a Capital Support Agreement on September 30, 2015, pursuant to which the Parent Company agrees to commit such capital to IDS Property Casualty as is necessary to maintain IDS Property Casualty's current financial strength ratings...

  • Page 205
    ...). Tax Allocation Agreement by and between American Express and Ameriprise Financial, Inc., dated as of September 30, 2005 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, File No. 1-32525, filed on October 4, 2005). Ameriprise Financial 2005 Incentive Compensation Plan...

  • Page 206
    ...General Counsel and Principal Accounting Officer and any other officers designated by the Chief Executive Officer (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, File No. 1-32525, filed on April 26, 2012). Ameriprise Financial 2008 Employment Incentive Equity Award Plan...

  • Page 207
    ...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 the S&P 500 Index. Past performance does not guarantee future results. It is not possible to invest directly in an index. Copyright © 2016...

  • Page 208
    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 statement...

  • Page 209
    ... Group John R. Woerner President, Insurance & Annuities and Chief Strategy Officer Board of Directors James M. Cracchiolo Chairman and Chief Executive Officer Ameriprise Financial, Inc. Dianne Neal Blixt Former Executive Vice President and Chief Financial Officer Reynolds American, Inc. Amy DiGeso...

  • Page 210
    Financial Planning | Retirement | Investments | Insurance ameriprise.com © 2016 Ameriprise Financial, Inc. All rights reserved. 400425 M (3/16)