Ameriprise 2015 Annual Report Download - page 18

16 | Annual Report 2015
This report is not a solicitation for any of the products or services
mentioned. Investment products, including shares of mutual
funds, are not FDIC or otherwise federally insured, are not
deposits or obligations, or guaranteed by any nancial institution,
and involve investment risks, including possible loss of principal
and uctuation in value.
Past performance does not guarantee future results. Actual
results may vary materially from our plans, estimates and beliefs.
Please review carefully the discussion captioned “Forward-
Looking Statements” contained in Part II, Item 7 in our Annual
Report on Form 10-K for the year ended Dec. 31, 2015.
The following describes the principal subsidiaries that conduct
the nancial planning, asset accumulation and income, and
protection businesses of Ameriprise Financial, Inc. Columbia
Mutual Funds are distributed by Columbia Management
Investment Distributors, Inc., member FINRA, and managed by
Columbia Management Investment Advisers, LLC. Threadneedle
International Limited is an FCA- and an SEC-registered investment
adviser and an afliate of Columbia Management Investment
Advisers, LLC, based in the U.K. RiverSource insurance and
annuity products are issued by RiverSource Life Insurance
Company and, in New York, by RiverSource Life Insurance Co. of
New York, Albany, NY, and distributed by RiverSource Distributors,
Inc. 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
and products are made available through Ameriprise Financial
Services, Inc., a registered investment adviser.
Columbia Threadneedle Investments is the global brand name of
the Columbia and Threadneedle group of companies.
Sources: Financial planning leadership: Ameriprise helped
pioneer the nancial planning process more than 30 years ago.
We have more CERTIFIED FINANCIAL PLANNERTM professionals
than any other company in the U.S. based on data provided by
the CFP Board of Standards, as of Dec. 31, 2015. Trust and
forgiveness – temkinratings.com. Top 30 global asset manager –
P&I/Towers Watson World 500 – Nov. 2, 2015, data as of
year-end 2014. Top 5 provider in U.K. – Investment Association,
retail AUM as of Sept. 2015.
($ in millions) 2015 2014 2013
Total net revenues $12,170 $12,268 $11,199
Less: Revenues attributable to the CIEs 446 651 345
Less: Net realized investment gains 4 37 7
Less: Market impact on indexed universal life benets 7 (11) (10)
Less: Market impact of hedges on investments (21) – –
Operating total net revenues $11,734 $11,591 $10,857
(1) Adjustments reect the trailing twelve months’ sum of after-tax net realized investment gains/losses, net of deferred sales inducement costs (“DSIC”) and deferred acquisition
costs (“DAC’) amortization, unearned revenue amortization and the reinsurance accrual; the market impact on variable annuity guaranteed benets, net of hedges and the
related DSIC and DAC amortization; the market impact on indexed universal life benets, net of hedges and the related DAC amortization, unearned revenue amortization, and
the reinsurance accrual; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; and integration/restructuring charges.
After-tax is calculated using the statutory tax rate of 35%.
(2) Amounts represent the ve-point average of quarter-end balances.
(3) Operating return on equity excluding accumulated other comprehensive income/loss (AOCI) is calculated using the trailing twelve months of earnings excluding the after-tax net
realized investment gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; market impact on variable annuity guaranteed
benets, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benets, net of hedges and related DAC amortization, unearned
revenue amortization, and the reinsurance accrual; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration/
restructuring charges; and discontinued operations in the numerator, and Ameriprise Financial shareholders’ equity excluding AOCI; the impact of consolidating investment entities;
and the assets and liabilities held for sale using a ve-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory tax rate of 35%.
Per Diluted Share
($ in millions, except per share amounts) 2015 2014 2013 2012 2011 2015 2014 2013 2012 2011
Net income attributable to Ameriprise Financial $1,562 $1,619 $1,334 $1,029 $1,116 $8.48 $8.30 $6.44 $4.62 $4.53
Less: Income (loss) from discontinued operations, net of tax – (2) (3) (2) (60) – (0.01) (0.02) (0.01) (0.24)
Net income from continuing operations attributable to Ameriprise Financial 1,562 1,621 1,337 1,031 1,176 8.48 8.31 6.46 4.63 4.77
Less: Net realized investment gains, net of tax(1) 3 24 5 5 4 0.02 0.12 0.02 0.02 0.01
Add: Integration/restructuring charges, net of tax(1) 3 – 9 46 62 0.02 – 0.04 0.21 0.25
Add: Market impact on variable annuity guaranteed benets, net of tax(1) 139 61 111 173 40 0.75 0.31 0.53 0.77 0.16
Add: Market impact on indexed universal life benets, net of tax(1) 1 4 8 – – 0.01 0.02 0.04 – –
Add: Market impact of hedges on investments, net of tax(1) 14 – – – – 0.08 – – – –
Operating earnings $1,716 $1,662 $1,460 $1,245 $1,274 $9.32 $8.52 $7.05 $5.59 $5.17
(1) Calculated using the statutory tax rate of 35%.
($ in millions) 2015
Asset Management operating total net revenues $3,254
Less: Distribution pass through revenues 862
Less: Subadvisory and other pass through revenues 407
Asset Management adjusted operating revenues $1,985
Asset Management pretax operating earnings $761
Less: Operating net investment income 23
Add: Amortization of intangibles 27
Asset Management adjusted operating earnings $765
Asset Management adjusted net pretax
operating margin 38.5%
($ in millions) 2015 2014 2013 2012 2011
Net income attributable to Ameriprise
Financial $1,562 $1,619 $1,334 $1,029 $1,116
Less: Income (loss) from discontinued
operations, net of tax – (2) (3) (2) (60)
Net income from continuing operations
attributable to Ameriprise Financial 1,562 1,621 1,337 1,031 1,176
Less: Adjustments(1) (154) (41) (123) (214) (98)
Operating earnings $1,716 $1,662 $1,460 $1,245 $1,274
Ameriprise Financial shareholders’ equity(2) $7,808 $8,270 $8,582 $9,071 $9,169
Less: Assets and liabilities held for sale(2) – – – – 30
Less: Accumulated other comprehensive
income (loss), net of tax "AOCI"(2) 516 734 821 1,001 701
Ameriprise Financial shareholders’ equity
from continuing operations excluding
AOCI(2)
7, 2 92 7,5 36 7,761 8,070 8,438
Less: Equity impacts attributable to the
consolidated investment entities(2) 216 311 333 397 478
Operating equity(2) $7,076 $7, 225 $7,428 $7,673 $7,960
Return on equity from continuing
operations, excluding AOCI 21.4% 21.5% 17. 2 % 12.8% 13.9%
Operating return on equity, excluding AOCI(3) 24.3% 23.0% 19.7% 16.2% 16.0%