Ameriprise 2015 Annual Report Download - page 100

Protection
The following table presents the results of operations of our Protection segment on an operating basis:
Years Ended
December 31,
2014 2013 Change
(in millions)
Revenues
Management and financial advice fees $ 59 $ 58 $ 1 2%
Distribution fees 92 91 1 1
Net investment income 447 439 8 2
Premiums 1,292 1,188 104 9
Other revenues 397 410 (13) (3)
Total revenues 2,287 2,186 101 5
Banking and deposit interest expense — — — —
Total net revenues 2,287 2,186 101 5
Expenses
Distribution expenses 61 62 (1) (2)
Interest credited to fixed accounts 153 145 8 6
Benefits, claims, losses and settlement expenses 1,416 1,252 164 13
Amortization of deferred acquisition costs 135 118 17 14
Interest and debt expense 28 25 3 12
General and administrative expense 248 248 — —
Total expenses 2,041 1,850 191 10
Operating earnings $ 246 $ 336 $ (90) (27)%
Our Protection segment pretax operating income, which excludes net realized investment gains or losses (net of the related
DAC amortization, unearned revenue amortization and the reinsurance accrual) and the market impact on indexed
universal life benefits (net of hedges and the related DAC amortization, unearned revenue amortization and the reinsurance
accrual), decreased $90 million, or 27%, to $246 million for the year ended December 31, 2014 compared to
$336 million for the prior year primarily due to lower auto and home earnings reflecting higher incurred losses, as well as
the impact of unlocking.
Net Revenues
Net revenues, which exclude net realized investment gains or losses (net of unearned revenue amortization and the
reinsurance accrual) and the unearned revenue amortization and the reinsurance accrual offset to the market impact on
indexed universal life benefits, increased $101 million, or 5%, to $2.3 billion for the year ended December 31, 2014
compared to $2.2 billion for the prior year primarily due to growth in auto and home premiums partially offset by the
impact of unlocking.
Premiums increased $104 million, or 9%, to $1.3 billion for the year ended December 31, 2014 compared to $1.2 billion
for the prior year primarily due to growth in auto and home premiums driven by new policy sales growth, primarily from our
affinity relationships with Costco and Progressive. Auto and home policies in force increased 11% compared to the prior
year.
Other revenues, which exclude the unearned revenue amortization and the reinsurance accrual offset to the market impact
on indexed universal life benefits and the unearned revenue amortization and the reinsurance accrual offset to net realized
investment gains or losses, decreased $13 million, or 3%, to $397 million for the year ended December 31, 2014
compared to $410 million for the prior year primarily due to a $29 million unfavorable impact from unlocking for the year
ended December 31, 2014 compared to an $18 million unfavorable impact in the prior year. The primary driver of the
unlocking impact to other revenues in both periods was lower projected gains on reinsurance contracts resulting from
favorable mortality experience.
Expenses
Total expenses, which exclude the market impact on indexed universal life benefits (net of hedges and the related DAC
amortization) and the DAC offset to net realized investment gains or losses, 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
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