Ameriprise 2015 Annual Report Download - page 76

The following table presents the total pretax impacts on our revenues and expenses attributable to unlocking for the years
ended December 31:
Pretax Increase (Decrease) 2015 2014
(in millions)
Premiums $(3)$—
Other revenues 8 (29)
Total revenues 5 (29)
Benefits, claims, losses and settlement expenses (58) 6
Amortization of DAC 15 8
Total expenses (43) 14
Total(1) $ 48 $ (43)
(1) 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
Net revenues decreased $98 million, or 1%, to $12.2 billion for the year ended December 31, 2015 compared to
$12.3 billion for the prior year primarily due to a decrease in other revenues, partially offset by an increase in
management and financial advice fees.
Management and financial advice fees increased $140 million, or 2%, to $6.0 billion for the year ended December 31,
2015 compared to $5.8 billion for the prior year primarily due to higher asset-based fees driven by an increase in average
AUM and a $39 million increase in performance fees. Average AUM increased $2.1 billion to $653.5 billion for the year
ended December 31, 2015 compared to $651.4 billion for the prior year primarily due to market appreciation and wrap
account net inflows, partially offset by asset management net outflows and the negative impact of foreign currency
translation. See our discussion on the changes in AUM in our segment results of operations section below.
Distribution fees decreased $47 million, or 2%, to $1.8 billion for the year ended December 31, 2015 compared to
$1.9 billion for the prior year primarily due to lower client activity.
Net investment income decreased $53 million, or 3%, to $1.7 billion for the year ended December 31, 2015 compared to
$1.7 billion for the prior year due to a $76 million decrease in investment income on fixed maturities primarily due to low
interest rates, a $21 million loss related to the market impact of hedges on investments and a $33 million decrease in
net realized investment gains, partially offset by a $74 million increase in net investment income of CIEs.
Premiums increased $70 million, or 5%, to $1.5 billion for the year ended December 31, 2015 compared to $1.4 billion
for the prior year primarily due to a 3% increase in auto and home policies in force.
Other revenues decreased $206 million, or 14%, to $1.3 billion for the year ended December 31, 2015 compared to
$1.5 billion for the prior year due to a $278 million decrease in other revenues of CIEs primarily due to lower gains from
changes in the fair value of real estate held in the consolidated property funds, partially offset by the impact of unlocking
and higher fees from variable annuity guarantee sales in the prior year where the fees start on the first anniversary date
and higher average fee rates. Other revenues for the year ended December 31, 2015 included an $8 million favorable
impact from unlocking compared to a $29 million negative impact in the prior year. The primary driver of the unlocking
impact to other revenues for the year ended December 31, 2015 was a positive impact from model updates related to our
indexed universal life product, partially offset by a negative impact from lower projected gains on reinsurance contracts
resulting from favorable mortality experience. The primary driver of the unlocking impact to other revenues for the prior year
was lower projected gains on reinsurance contracts resulting from favorable mortality experience.
Expenses
Total expenses increased $307 million, or 3%, to $10.0 billion for the year ended December 31, 2015 compared to
$9.7 billion for the prior year primarily due to an increase in benefits, claims, losses and settlement expenses.
Distribution expenses increased $40 million, or 1%, to $3.3 billion for the year ended December 31, 2015 compared to
$3.2 billion for the prior year driven by higher advisor compensation due to growth in average assets under management.
Interest credited to fixed accounts decreased $45 million, or 6%, to $668 million for the year ended December 31, 2015
compared to $713 million for the prior year driven by lower average fixed annuity account balances. Average fixed annuity
account balances decreased $1.3 billion, or 11%, to $11.3 billion for the year ended December 31, 2015 compared to
the prior year due to net outflows reflecting higher lapse rates and limited new sales due to low interest rates.
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