Ameriprise 2015 Annual Report Download - page 88

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 $160 million, or 8%, to $2.2 billion
for the year ended December 31, 2015 compared to $2.0 billion for the prior year primarily due to increases in benefits,
claims, losses and settlement expenses and amortization of DAC.
Benefits, claims, losses and settlement expenses increased $122 million, or 9%, to $1.5 billion for the year ended
December 31, 2015 compared to $1.4 billion for the prior year primarily reflecting the following items:
• A $106 million increase related to our auto and home business due to an increase in the provision for estimated
losses reflecting the impact of growth in exposures due to a 3% increase in policies in force, higher 2015 accident
year loss ratio assumptions and prior year development. In 2015, we increased our claims reserves $57 million
primarily related to the 2014 and prior accident years auto liability coverages. This increase was driven by elevated
frequency and severity experience for auto injury claims, as well as a lower than expected level of impact in improving
the outcome of 2014 and prior accident year existing claims. Auto and home losses for the prior year included a
$30 million increase to prior accident year loss reserves resulting from adverse development in the 2013 and prior
accident years auto liability coverage and a $60 million increase to loss reserves for estimated losses including IBNR
claims resulting from further adverse loss development observed primarily in the 2014 auto book of business.
Catastrophe losses were $72 million for the year ended December 31, 2015 compared to $66 million for the prior
year.
• A $20 million increase in life insurance claims compared to the prior year primarily due to larger claims.
• A $19 million increase in LTC claims compared to the prior year primarily due to an increase in the number of open
claims and an update in claim reserve assumptions partially offset by a higher interest rate used for LTC claims and
the release of additional LTC reserves.
Amortization of DAC, which excludes the DAC offset to the market impact on indexed universal life benefits and the DAC
offset to net realized investment gains or losses, increased $20 million, or 15%, to $155 million for the year ended
December 31, 2015 compared to $135 million for the prior year primarily due to the impact of unlocking. Amortization of
DAC for the year ended December 31, 2015 included a $10 million expense from unlocking primarily driven by the
difference between our previously assumed interest rates versus the continued low interest rate environment. Amortization
of DAC for the prior year included a $9 million 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 2014 Change
(in millions)
Revenues
Distribution fees $—$ 1$(1)NM
Net investment loss (10) (6) (4) (67)%
Other revenues 13 9 4 44
Total revenues 3 4 (1) (25)
Banking and deposit interest expense — — — —
Total net revenues 3 4 (1) (25)
Expenses
Distribution expenses — 1 (1) NM
Interest and debt expense 22 21 1 5
General and administrative expense 180 212 (32) (15)
Total expenses 202 234 (32) (14)
Operating loss $ (199) $ (230) $ 31 13%
NM Not Meaningful.
Our Corporate & Other segment pretax operating loss excludes net realized investment gains or losses, the market impact
of hedges to offset interest rate changes on unrealized gains or losses for certain investments, integration and restructuring
charges, and the impact of consolidating CIEs. Our Corporate & Other segment pretax operating loss decreased
66