Ameriprise F
inancial,
Inc. Annual Repor
t 2014
Financial Planning | Retirement | Investments | Insurance
ameriprise.com
© 2015 Ameriprise Financial, Inc. All rights reserved. 400425 L (3/15)
James M. Cracchiolo
Chairman and Chief Executive Officer Walter S. Berman
Executive Vice President and Chief Financial Officer Donald E. Froude
President, The Personal Advisors Group Kelli A. Hunter
Executive Vice President, Human Resources John C. Junek
Executive Vice President and General Counsel Randy C. Kupper
Executive Vice President and Chief Information Officer Neal Maglaque
President, Advice & Wealth Management Business Development and Chief Operating Officer Deirdre D. McGraw
Executive Vice President, Marketing, Corporate Communications and Community Relations Colin Moore
Executive Vice President, Global Chief Investment Officer Joseph E. Sweeney
President, Advice & Wealth Management Products and Service Delivery
William F. Truscott
Chief Executive Officer, Global Asset Management John R. Woerner
President, Insurance & Annuities and Chief Strategy Officer
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
Former Executive Vice President Global Human Resources The Estée Lauder Companies Inc. Lon R. Greenberg
Chairman and Former Chief Executive Officer UGI Corporation Siri S. Marshall
Former Senior Vice President and General Counsel
General Mills, Inc. Jeffrey Noddle Former Chairman SUPERVALU INC. H. Jay Sarles Private Investor Former Vice Chairman Bank of America Robert F. Sharpe, Jr. Former President Commercial Foods and Chief Administrative Officer ConAgra Foods, Inc. William H. Turner Former Dean
Montclair State University Former Chairman
PNC Bank, NA, New Jersey
Executive Leadership Team
Board of Directors
GAAP 2014 2013 2012
Net revenues $12,268 $11,199 $10,217
Net income from continuing operations attributable to Ameriprise Financial
$1,621 $1,337 $1,031
Earnings from continuing operations per diluted share attributable to Ameriprise Financial common shareholders
$8.31 $6.46 $4.63
Return on equity from continuing operations excluding accumulated other comprehensive income, net of tax
21.5% 17.2% 12.8%
Shareholders’ equity $8,124 $8,192 $9,092 Shareholders’ equity
excluding accumulated other comprehensive income, net of tax
$7,462 $7,597 $7,898
This Annual Report to Shareholders contains certain non-GAAP financial measures that management believes best reflect the underlying performance of our operations. Reconciliations of non-GAAP measures to the most directly comparable GAAP measure are on page 14.
2014 Ameriprise Financial Consolidated Highlights
($ in millions, except per share and as noted)
Operating 2014 2013 2012 Net revenues $11,591 $10,857 $10,143 Earnings $1,662 $1,460 $1,245 Earnings per diluted share $8.52 $7.05 $5.59 Return on equity excluding accumulated other comprehensive income, net of tax
23.0% 19.7% 16.2%
2014 2013 2012
Assets under management and administration (in billions) $806 $771 $681
Weighted average common shares outstanding — diluted 195.0 207.1 222.8
Cash dividends paid per common share $2.26 $2.01 $1.43
Common stock shares repurchased 11.8 17.8 24.6
James M. Cracchiolo
Chairman and Chief Executive Officer Walter S. Berman
Executive Vice President and Chief Financial Officer Donald E. Froude
President, The Personal Advisors Group Kelli A. Hunter
Executive Vice President, Human Resources John C. Junek
Executive Vice President and General Counsel Randy C. Kupper
Executive Vice President and Chief Information Officer Neal Maglaque
President, Advice & Wealth Management Business Development and Chief Operating Officer Deirdre D. McGraw
Executive Vice President, Marketing, Corporate Communications and Community Relations Colin Moore
Executive Vice President, Global Chief Investment Officer Joseph E. Sweeney
President, Advice & Wealth Management Products and Service Delivery
William F. Truscott
Chief Executive Officer, Global Asset Management John R. Woerner
President, Insurance & Annuities and Chief Strategy Officer
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
Former Executive Vice President Global Human Resources The Estée Lauder Companies Inc. Lon R. Greenberg
Chairman and Former Chief Executive Officer UGI Corporation Siri S. Marshall
Former Senior Vice President and General Counsel
General Mills, Inc. Jeffrey Noddle Former Chairman SUPERVALU INC. H. Jay Sarles Private Investor Former Vice Chairman Bank of America Robert F. Sharpe, Jr. Former President Commercial Foods and Chief Administrative Officer ConAgra Foods, Inc. William H. Turner Former Dean
Montclair State University Former Chairman
PNC Bank, NA, New Jersey
Executive Leadership Team
Board of Directors
GAAP 2014 2013 2012
Net revenues $12,268 $11,199 $10,217
Net income from continuing operations attributable to Ameriprise Financial
$1,621 $1,337 $1,031
Earnings from continuing operations per diluted share attributable to Ameriprise Financial common shareholders
$8.31 $6.46 $4.63
Return on equity from continuing operations excluding accumulated other comprehensive income, net of tax
21.5% 17.2% 12.8%
Shareholders’ equity $8,124 $8,192 $9,092 Shareholders’ equity
excluding accumulated other comprehensive income, net of tax
$7,462 $7,597 $7,898
This Annual Report to Shareholders contains certain non-GAAP financial measures that management believes best reflect the underlying performance of our operations. Reconciliations of non-GAAP measures to the most directly comparable GAAP measure are on page 14.
2014 Ameriprise Financial Consolidated Highlights
($ in millions, except per share and as noted)
Operating 2014 2013 2012 Net revenues $11,591 $10,857 $10,143 Earnings $1,662 $1,460 $1,245 Earnings per diluted share $8.52 $7.05 $5.59 Return on equity excluding accumulated other comprehensive income, net of tax
23.0% 19.7% 16.2%
2014 2013 2012
Assets under management and administration (in billions) $806 $771 $681
Weighted average common shares outstanding — diluted 195.0 207.1 222.8
Cash dividends paid per common share $2.26 $2.01 $1.43
Dear fellow shareholders,
In 2014, Ameriprise Financial marked its 120th anniversary.
Our longevity and legacy of success come from our clarity
of focus on who we serve — our clients. Later this year,
we will recognize another important milestone, our 10th
anniversary as an independent, public company. We
have made incredible progress and Ameriprise has
never been stronger. As always, we remain true to
our mission to help people feel confident about
their financial future.
We take pride in the position we’ve earned
and progress we’ve made, and I feel confident
about our ability to further our growth. Our
consistent strategy to advise, manage and
protect assets and income for individual
and institutional clients is working. We
do this through a powerful, diversified
business model firmly centered on
serving our clients’ needs. As I will
share in this letter, Ameriprise is
performing well. And in many
ways, we are outperforming.
(continued on next page)
JAMES M. CRACCHIOLOCHAIRMAN AND
Our values:
Client focus, integrity
always,
excellence
in all we do
and
respect
for individuals
and communities
A recognized leader
One of the most trusted
investment firms
No. 1 customer experience
— investment firm category
Highest forgiveness rating
in the investment industry
Financial planning leader
No. 1 provider of quality
investment advice
No. 2 most influential
brokerage in social media
No. 2 mutual fund advisory
program in assets
No. 5 preferred rollover
IRA destination
Top 30 global asset manager
No. 11 long-term mutual
fund manager in the U.S.
Top 10 variable universal
life insurance provider
Strong financial strength ratings
(see source information on pg. 14)
A year of record performance
From financials to business performance, Ameriprise delivered record results across
many dimensions. Aided by continued improvement in consumer sentiment and
appreciating equity markets in the U.S., we grew assets across the firm while
managing continued headwinds from low interest rates.
We completed the year with $806 billion of assets under management and
administration. In terms of our financials, we’ve consistently demonstrated our
ability to grow. With solid revenue growth and continued expense management,
operating earnings reached a record $1.7 billion — a 14% increase for the
year — and operating earnings per diluted share increased 21% to $8.52.
As a result of good business growth and effective capital management,
we continue to expand our return on equity, an important measure of
how efficiently we use the equity our shareholders entrust to us. At the
conclusion of 2014, operating ROE reached a new high of 23%, which
we’ve more than doubled over the last five years. Few financial
services companies generate this level and growth of return.
Investors have noticed. The total return of Ameriprise
common stock was 17% for the year, continuing our record
of outperforming relevant indices. Since becoming an
independent, public company in 2005, total shareholder
return at the end of 2014 was 337%, ranking Ameriprise
second overall in the S&P 500 Financials Index.
Significant growth opportunity
There continues to be a tremendous need for advice
to help consumers prepare for and live in retirement.
Ameriprise remains at the heart of this large
opportunity. Whether it’s individuals searching for
reliable income sources or institutions looking to
achieve their own goals, we have the expertise
and capabilities they need.
We serve clients through our primary
growth engines: Advice & Wealth
Management and Asset Management,
2 01 1 2 01 2 2 01 3 2 0 10 2 01 4 $5.17 $5.59 $7.05 $8.52 $4.10
Operating earnings per diluted share
One of the most trusted
investment firms
No. 1 customer experience
— investment firm category
Highest forgiveness rating
in the investment industry
Financial planning leader
No. 1 provider of quality
investment advice
No. 2 most influential
brokerage in social media
No. 2 mutual fund advisory
program in assets
No. 5 preferred rollover
IRA destination
Top 30 global asset manager
No. 11 long-term mutual
fund manager in the U.S.
Top 10 variable universal
life insurance provider
Strong financial strength ratings
(see source information on pg. 14)
A year of record performance
From financials to business performance, Ameriprise delivered record results across
many dimensions. Aided by continued improvement in consumer sentiment and
appreciating equity markets in the U.S., we grew assets across the firm while
managing continued headwinds from low interest rates.
We completed the year with $806 billion of assets under management and
administration. In terms of our financials, we’ve consistently demonstrated our
ability to grow. With solid revenue growth and continued expense management,
operating earnings reached a record $1.7 billion — a 14% increase for the
year — and operating earnings per diluted share increased 21% to $8.52.
As a result of good business growth and effective capital management,
we continue to expand our return on equity, an important measure of
how efficiently we use the equity our shareholders entrust to us. At the
conclusion of 2014, operating ROE reached a new high of 23%, which
we’ve more than doubled over the last five years. Few financial
services companies generate this level and growth of return.
Investors have noticed. The total return of Ameriprise
common stock was 17% for the year, continuing our record
of outperforming relevant indices. Since becoming an
independent, public company in 2005, total shareholder
return at the end of 2014 was 337%, ranking Ameriprise
second overall in the S&P 500 Financials Index.
Significant growth opportunity
There continues to be a tremendous need for advice
to help consumers prepare for and live in retirement.
Ameriprise remains at the heart of this large
opportunity. Whether it’s individuals searching for
reliable income sources or institutions looking to
achieve their own goals, we have the expertise
and capabilities they need.
We serve clients through our primary
growth engines: Advice & Wealth
Management and Asset Management,
Assets under management and administration $ in billions 2 01 1 2 01 2 2 01 3 2 0 10 2 01 4 $631 $681 $771 $806 $647 $444 $409 $353 $310 $304
Retail client assets $ in billions 2 01 1 2 01 2 2 01 3 2 0 10 2 01 4
Growth in assets
complemented by our Protection and Annuity businesses. This
combination provides multiple revenue streams, strong asset
persistency and lower volatility than many of our peers.
While other companies in financial services compete either as
a manufacturer or distributor, we offer an integrated business.
Our approach allows us to offer an excellent client experience
and results in deep, long-lasting client relationships.
A powerful wealth manager
We’re striving to be an unparalleled provider of retail financial
services. And the key is the relationship our advisors have with
clients, centered on comprehensive financial planning and
advice. These relationships are developed and strengthened
over many decades. We proudly serve multiple generations of
families because they appreciate the value and peace of mind
Ameriprise can provide over a lifetime.
Our growth strategy is simple yet powerful: serve more clients
who are accumulating wealth and transitioning to retirement;
deepen relationships with existing clients through our
comprehensive advice and solutions; and further enhance
our advisor value proposition to continue to build a highly
productive and growing advisor force. Our strategy is
consistent — the results we’re generating reflect years of
effective execution and steady investment to bring it to life.
Ameriprise is the leader in financial planning and we’ve long
held that position. Our high client satisfaction and referral
rates are essential to our growth. In fact, Forrester Research
named us a “client-obsessed firm,” and also rated Ameriprise
no. 1 in customer experience across investment firms.
Our offering appeals to mass affluent and affluent consumers
alike. Many of our clients have experienced our Confident
Retirement® approach — they feel more confident and believe
the advice addresses their needs. Our approach simplifies the challenges of saving
for retirement, making it easier for clients to understand and take action, as well as
for advisors to increase their productivity. Building on this success, we’re expanding
our Confident Retirement approach beyond those transitioning to retirement to the
many consumers who are at an earlier life stage and are more focused on
growing their wealth.
In 2014, we formally introduced Confident Retirement to the marketplace
through our “Real Questions. Real Answers.” advertising campaign. It includes
digital advertising, social media, the 3-Minute Confident Retirement
SMcheck
and the opportunity to engage in a conversation with an Ameriprise financial
advisor. At the end of 2014, our brand awareness was at an all-time high.
In addition to our investment in the Ameriprise brand, we’re also
investing in leading technology and systems. We’re working with our
advisors to run highly productive and efficient practices. In 2014,
we completed a major upgrade to our infrastructure. Today, our
capabilities are stronger and even more secure. Tools such as
Paperless Office are saving resources and increasing efficiency.
We launched Total View, an account aggregation tool clients use
to view their accounts held at Ameriprise as well as assets
held at more than 10,000 financial institutions. In 2015, we’ll
introduce our new Money Movement System as well as
expand advisor mobile capabilities to serve clients
when, where and how they want.
We believe delivering an exceptional experience to our
clients and advisors differentiates Ameriprise. With our
strong reputation, consistent investment and support,
our advisor force is strong and motivated to grow.
Advisor satisfaction and retention rates remain high.
Advisors in the industry are taking notice. In 2014,
284 experienced, productive advisors moved
their practices to Ameriprise, bringing the total
to more than 1,300 experienced advisors who
have joined us over the past four years.
$7.3
$9.6
$13.1
$14.2
$7.6
Client net inflows into fee-based, investment advisory accounts $ in billions 2 01 1 2 01 2 2 01 3 2 0 10 2 01 4
complemented by our Protection and Annuity businesses. This
combination provides multiple revenue streams, strong asset
persistency and lower volatility than many of our peers.
While other companies in financial services compete either as
a manufacturer or distributor, we offer an integrated business.
Our approach allows us to offer an excellent client experience
and results in deep, long-lasting client relationships.
A powerful wealth manager
We’re striving to be an unparalleled provider of retail financial
services. And the key is the relationship our advisors have with
clients, centered on comprehensive financial planning and
advice. These relationships are developed and strengthened
over many decades. We proudly serve multiple generations of
families because they appreciate the value and peace of mind
Ameriprise can provide over a lifetime.
Our growth strategy is simple yet powerful: serve more clients
who are accumulating wealth and transitioning to retirement;
deepen relationships with existing clients through our
comprehensive advice and solutions; and further enhance
our advisor value proposition to continue to build a highly
productive and growing advisor force. Our strategy is
consistent — the results we’re generating reflect years of
effective execution and steady investment to bring it to life.
Ameriprise is the leader in financial planning and we’ve long
held that position. Our high client satisfaction and referral
rates are essential to our growth. In fact, Forrester Research
named us a “client-obsessed firm,” and also rated Ameriprise
no. 1 in customer experience across investment firms.
Our offering appeals to mass affluent and affluent consumers
alike. Many of our clients have experienced our Confident
Retirement® approach — they feel more confident and believe
the advice addresses their needs. Our approach simplifies the challenges of saving
for retirement, making it easier for clients to understand and take action, as well as
for advisors to increase their productivity. Building on this success, we’re expanding
our Confident Retirement approach beyond those transitioning to retirement to the
many consumers who are at an earlier life stage and are more focused on
growing their wealth.
In 2014, we formally introduced Confident Retirement to the marketplace
through our “Real Questions. Real Answers.” advertising campaign. It includes
digital advertising, social media, the 3-Minute Confident Retirement
SMcheck
and the opportunity to engage in a conversation with an Ameriprise financial
advisor. At the end of 2014, our brand awareness was at an all-time high.
In addition to our investment in the Ameriprise brand, we’re also
investing in leading technology and systems. We’re working with our
advisors to run highly productive and efficient practices. In 2014,
we completed a major upgrade to our infrastructure. Today, our
capabilities are stronger and even more secure. Tools such as
Paperless Office are saving resources and increasing efficiency.
We launched Total View, an account aggregation tool clients use
to view their accounts held at Ameriprise as well as assets
held at more than 10,000 financial institutions. In 2015, we’ll
introduce our new Money Movement System as well as
expand advisor mobile capabilities to serve clients
when, where and how they want.
We believe delivering an exceptional experience to our
clients and advisors differentiates Ameriprise. With our
strong reputation, consistent investment and support,
our advisor force is strong and motivated to grow.
Advisor satisfaction and retention rates remain high.
Advisors in the industry are taking notice. In 2014,
284 experienced, productive advisors moved
their practices to Ameriprise, bringing the total
to more than 1,300 experienced advisors who
have joined us over the past four years.
Increasing advisor
productivity
Operating net revenue per advisor $ in thousands $496 l $440 $396 $384 $342 2 01 1 2 01 2 2 01 3 2 0 10 2 01 4
Because of the experience we deliver and the support we
provide advisors, clients are entrusting record levels of assets
to Ameriprise. During the year, clients added more than $14
billion of net inflows into investment advisory accounts, up 9%,
helping to increase total wrap assets under management by
14% to $175 billion.
Total client assets increased substantially to $444 billion.
In fact, over the last five years, we’ve averaged 10% annual
growth in client assets.
This strong growth trend is also reflected in the productivity
of our advisors. In 2014, operating net revenue per financial
advisor increased to $496,000 — a record high. We’re working
with our advisors to fully benefit from the resources we invest
in, enabling them to deliver a terrific client experience and to
continue to increase their productivity.
With strong asset and productivity growth, Advice & Wealth
Management pretax operating earnings topped $790 million
— up a robust 34% — and our operating margin grew
substantially to an attractive 16.5%.
These are excellent results. We feel confident that with the
value and experience we offer, Ameriprise is well positioned
for further growth.
Protection and Annuities — central to our diversified model
Our RiverSource insurance and annuity businesses help clients
protect what matters most, offer important tax benefits and
generate reliable sources of retirement income. We’ve built
high-quality businesses with products and solutions that we
stand behind and not only contribute to our high client
satisfaction, but also deliver appropriate shareholder returns.
These businesses are differentiated through our distribution,
product design and effective risk management. Our products
are central to our Confident Retirement approach. They help
clients protect their assets and income and provide the
company with additional asset gathering opportunities. We offer our life and health
insurance and annuities products largely to Ameriprise clients through an advice
relationship, not as transactional sales. And we benefit from our deep
understanding of our clients’ goals and behavior.
We continue to focus on educating clients and advisors about the role insurance
and annuity products play in a comprehensive financial plan. And consistent
with our priority to make it easy to conduct business, we simplified our
sales processes and enabled our advisors to submit new business
more efficiently.
In 2014, variable annuity balances grew to $77 billion, as we benefited
from equity market growth. Assets in fixed annuities declined due to low
sales given that interest rates remain at historically low levels. As we
work with clients to help ensure their retirement lifestyle through tax
management and protection, we’re selling more variable annuities
without living benefits. This complements sales with living benefits
as a way for clients to cover lifestyle expenses in retirement.
In life and health insurance, we remain focused on permanent
cash value insurance and other fixed, indexed and variable
solutions, and we recently launched our next generation
multi-index universal life product. In addition, we generated
solid sales of universal life policies as a result of our new
RiverSource TrioSource
SMinsurance product, which
includes a tax-qualified long-term care rider that fits well
within our comprehensive approach.
Delivering results with the
Confident Retirement approach
•
93%
feel
more
confident
about retirement
•
96%
feel the advice
addresses
their
needs
Source: Company reports
Because of the experience we deliver and the support we
provide advisors, clients are entrusting record levels of assets
to Ameriprise. During the year, clients added more than $14
billion of net inflows into investment advisory accounts, up 9%,
helping to increase total wrap assets under management by
14% to $175 billion.
Total client assets increased substantially to $444 billion.
In fact, over the last five years, we’ve averaged 10% annual
growth in client assets.
This strong growth trend is also reflected in the productivity
of our advisors. In 2014, operating net revenue per financial
advisor increased to $496,000 — a record high. We’re working
with our advisors to fully benefit from the resources we invest
in, enabling them to deliver a terrific client experience and to
continue to increase their productivity.
With strong asset and productivity growth, Advice & Wealth
Management pretax operating earnings topped $790 million
— up a robust 34% — and our operating margin grew
substantially to an attractive 16.5%.
These are excellent results. We feel confident that with the
value and experience we offer, Ameriprise is well positioned
for further growth.
Protection and Annuities — central to our diversified model
Our RiverSource insurance and annuity businesses help clients
protect what matters most, offer important tax benefits and
generate reliable sources of retirement income. We’ve built
high-quality businesses with products and solutions that we
stand behind and not only contribute to our high client
satisfaction, but also deliver appropriate shareholder returns.
These businesses are differentiated through our distribution,
product design and effective risk management. Our products
are central to our Confident Retirement approach. They help
clients protect their assets and income and provide the
company with additional asset gathering opportunities. We offer our life and health
insurance and annuities products largely to Ameriprise clients through an advice
relationship, not as transactional sales. And we benefit from our deep
understanding of our clients’ goals and behavior.
We continue to focus on educating clients and advisors about the role insurance
and annuity products play in a comprehensive financial plan. And consistent
with our priority to make it easy to conduct business, we simplified our
sales processes and enabled our advisors to submit new business
more efficiently.
In 2014, variable annuity balances grew to $77 billion, as we benefited
from equity market growth. Assets in fixed annuities declined due to low
sales given that interest rates remain at historically low levels. As we
work with clients to help ensure their retirement lifestyle through tax
management and protection, we’re selling more variable annuities
without living benefits. This complements sales with living benefits
as a way for clients to cover lifestyle expenses in retirement.
In life and health insurance, we remain focused on permanent
cash value insurance and other fixed, indexed and variable
solutions, and we recently launched our next generation
multi-index universal life product. In addition, we generated
solid sales of universal life policies as a result of our new
RiverSource TrioSource
SMinsurance product, which
includes a tax-qualified long-term care rider that fits well
within our comprehensive approach.
Delivering results with the
Confident Retirement approach
•
93%
feel
more
confident
about retirement
•
96%
feel the advice
addresses
their
needs
Source: Company reports
AUM by asset type
Equity Money market Fixed income Alternative Hybrid and other
55%
38%
2%
4%
1%
AUM by client type
Retail Alternative Institutional Owned Assets
56%
36%
7% 1%
Strong global
asset manager
$506 billion in AUM
Locations in 18 countries
118 four- and five-star funds
11th largest manager of
long-term funds in the U.S.
Fifth largest retail
manager in the U.K.
(Data as of 12-31-14, see source information on pg. 14)
In addition, we have a good Auto & Home insurance
business in a highly competitive industry. We’ve
consistently grown our policy count, focusing on affinity
channels, and have earned a strong reputation for
service and satisfaction. More recently, we increased
reserves related to prior-year auto liability claims. We are
taking the right steps to strengthen the business and
believe we can profitably grow and continue to serve
more clients as we move forward.
In terms of financials, Annuity and Protection pretax
operating earnings were $879 million in 2014, reflecting
higher non-cash expenses, as well as the impact of low
interest rates. That said, the underlying performance
of our annuity, life and health businesses was in line
with our expectations.
The Protection and Annuities businesses are key
contributors to Ameriprise. While we expect a slower
growth rate over time than Advice & Wealth Management
and Asset Management, they are important to our
diversified model and client experience. We’ll continue
to work with clients and advisors to educate them on
the benefits these products can provide.
Building a global asset manager
Asset management industry AUM is projected to grow
considerably in the U.S. and U.K.-Europe, where
Columbia Management and Threadneedle Investments
operate from positions of strength, and at even higher
rates in Asia-Pacific, Latin America and the Middle East,
where we are establishing a strong foothold.
Over the years, we’ve built a competitive business
through both organic growth and acquisitions. Our
talented teams at Columbia and Threadneedle have
been working for more than two years to bring together
the best of our capabilities on a global basis for the benefit of our clients. We’re
expanding our product offering, delivering client-focused solutions and generating
good investment performance. We have the size, scale, investment track records
and capabilities to serve individuals, institutions and corporate clients around the
world.
We are a $500+ billion player with more than 450 investment professionals
and a presence in 18 countries. We’re transforming the business to take an
even greater share of the global opportunity.
We have grown AUM and earnings consistently while remaining focused on
moving to net inflows over time. In 2014, we continued to experience
outflow pressure, including from former parent relationships from our
previous acquisitions and, like other active managers, in certain equity
asset classes. We helped offset that pressure with solid sales,
including winning an important $5.6 billion mandate from a leading
U.K. wealth manager, and benefited from equity market growth.
Our asset management growth strategy is consistent — increase
our higher fee retail and institutional AUM while maintaining
strategic relationships that provide a solid asset and fee
base.
We’ve also taken an important strategic step, announcing
a new global brand for the business — Columbia
Threadneedle Investments
SM— that we will introduce
in the first half of 2015. Our new name builds on the
brand equity we’ve earned over many years as
separate businesses and strengthens our
positioning around the world under a single brand.
We continue to see product opportunities in
three areas: traditional products, where we have
118 four- and five-star Morningstar-rated
funds; global products; and multi-asset
strategies and solutions.
Our work centers on helping our clients
achieve the outcomes they need and
enables us to drive profitable net flows.
$436 $455
$501 $506
$457
Asset Management assets under management $ in billions 2 01 1 2 01 2 2 01 3 2 0 10 2 01 4
In addition, we have a good Auto & Home insurance
business in a highly competitive industry. We’ve
consistently grown our policy count, focusing on affinity
channels, and have earned a strong reputation for
service and satisfaction. More recently, we increased
reserves related to prior-year auto liability claims. We are
taking the right steps to strengthen the business and
believe we can profitably grow and continue to serve
more clients as we move forward.
In terms of financials, Annuity and Protection pretax
operating earnings were $879 million in 2014, reflecting
higher non-cash expenses, as well as the impact of low
interest rates. That said, the underlying performance
of our annuity, life and health businesses was in line
with our expectations.
The Protection and Annuities businesses are key
contributors to Ameriprise. While we expect a slower
growth rate over time than Advice & Wealth Management
and Asset Management, they are important to our
diversified model and client experience. We’ll continue
to work with clients and advisors to educate them on
the benefits these products can provide.
Building a global asset manager
Asset management industry AUM is projected to grow
considerably in the U.S. and U.K.-Europe, where
Columbia Management and Threadneedle Investments
operate from positions of strength, and at even higher
rates in Asia-Pacific, Latin America and the Middle East,
where we are establishing a strong foothold.
Over the years, we’ve built a competitive business
through both organic growth and acquisitions. Our
talented teams at Columbia and Threadneedle have
been working for more than two years to bring together
the best of our capabilities on a global basis for the benefit of our clients. We’re
expanding our product offering, delivering client-focused solutions and generating
good investment performance. We have the size, scale, investment track records
and capabilities to serve individuals, institutions and corporate clients around the
world.
We are a $500+ billion player with more than 450 investment professionals
and a presence in 18 countries. We’re transforming the business to take an
even greater share of the global opportunity.
We have grown AUM and earnings consistently while remaining focused on
moving to net inflows over time. In 2014, we continued to experience
outflow pressure, including from former parent relationships from our
previous acquisitions and, like other active managers, in certain equity
asset classes. We helped offset that pressure with solid sales,
including winning an important $5.6 billion mandate from a leading
U.K. wealth manager, and benefited from equity market growth.
Our asset management growth strategy is consistent — increase
our higher fee retail and institutional AUM while maintaining
strategic relationships that provide a solid asset and fee
base.
We’ve also taken an important strategic step, announcing
a new global brand for the business — Columbia
Threadneedle Investments
SM— that we will introduce
in the first half of 2015. Our new name builds on the
brand equity we’ve earned over many years as
separate businesses and strengthens our
positioning around the world under a single brand.
We continue to see product opportunities in
three areas: traditional products, where we have
118 four- and five-star Morningstar-rated
funds; global products; and multi-asset
strategies and solutions.
Our work centers on helping our clients
achieve the outcomes they need and
enables us to drive profitable net flows.
2012: $1.9 billion
52%
2010: $1.6 billion 45%Evolving our
business mix
Each of our diversified
businesses delivers for
clients, advisors and
shareholders. As we’ve
grown, we’ve transformed
our business mix with
the majority of our pretax
operating earnings driven by
our less capital-demanding
advisory and asset
management businesses.
Advice & Wealth Management and Asset Management Annuities & Protection
2014: $2.5 billion
64%
(data excludes Corporate & Other segment results) Source: Company reports
We introduced a number of new products in 2014,
including the Columbia Diversified Real Return Fund,
the Threadneedle Global Multi Asset Income Fund and
four locally managed Asian equity and fixed income
funds for investors in Asia.
*We also built on the
successful launch of the Columbia Adaptive Risk
Allocation Fund, a key fund within our solutions
business that’s gaining interest from individual and
institutional investors alike. In fact, Chief Investment
Officer Magazine recently recognized the team with
an innovation award for its work.
In terms of distribution, the retail business at
Threadneedle continues to perform well, even as
we experienced higher market volatility in the second
half of the year. Investment performance remains
quite strong overall. We’re building on the traction
we have in the U.K. and Europe and expanding in
Asia-Pacific. As investor confidence improves, we
expect to accelerate sales in 2015.
At Columbia, we made a number of moves to
strengthen the U.S. intermediary business. We
enhanced our leadership team; better aligned our
product and distribution efforts; and reinforced our
business intelligence capabilities. Our team is engaged
and motivated. The right people, strategy and tools are
in place. We remain focused on driving value to
advisors and intermediary clients and earning a
greater share of flows in equity, fixed income and
multi-asset products.
Our retail business is complemented by a strong and
growing traditional third-party institutional business.
We manage it globally — across sales, consultant
relations and client service. We’re earning important
equity and fixed income mandates in the U.S., Europe and Asia. We’ve generated
several quarters of positive flows and have a solid new business pipeline.
Financially, Asset Management delivered a record year. Operating net
revenues grew 5% to $3.3 billion, pretax operating earnings were up 14%
to $788 million and our adjusted net pretax operating margin was a
competitive 40%.
In Asset Management, we’re focused on our clients and are channeling
resources to the areas where we see the best growth opportunities.
We’re moving in a positive direction, and I feel good about the
opportunities before us.
Transforming our business mix and deploying capital
The effective execution of our growth strategy is transforming our
business mix and reinforcing our ability to deliver shareholder
value consistently.
Advice & Wealth Management and Asset Management
generated 64% of 2014 pretax operating earnings, up
from 45% in 2010. The strong growth in these
fee-based, higher P/E businesses is complemented by the
strength, stability and differentiation of our Protection
and Annuity businesses.
Our financial strength and capital position
differentiate Ameriprise. Our diversified model
generates significant free cash flow. As we’ve
grown, we’ve prudently reduced overall capital
requirements — a combination that has
allowed us to continue to invest in the
business while returning capital to
shareholders at one of the highest rates
in financial services.
* All asset management products are not available in all jurisdictions.
Annual Report 2014 | 11 10 | Annual Report 2014
Dividends paid
Common stock share repurchases
2 01 1 2 01 2 2 01 3 2 0 10 2 01 4 $1,372 $435 $1,481 $411 $1,340 $314 $1,456 $212 $573 $183 Dividends/share repurchases $ in millions
We introduced a number of new products in 2014,
including the Columbia Diversified Real Return Fund,
the Threadneedle Global Multi Asset Income Fund and
four locally managed Asian equity and fixed income
funds for investors in Asia.
*We also built on the
successful launch of the Columbia Adaptive Risk
Allocation Fund, a key fund within our solutions
business that’s gaining interest from individual and
institutional investors alike. In fact, Chief Investment
Officer Magazine recently recognized the team with
an innovation award for its work.
In terms of distribution, the retail business at
Threadneedle continues to perform well, even as
we experienced higher market volatility in the second
half of the year. Investment performance remains
quite strong overall. We’re building on the traction
we have in the U.K. and Europe and expanding in
Asia-Pacific. As investor confidence improves, we
expect to accelerate sales in 2015.
At Columbia, we made a number of moves to
strengthen the U.S. intermediary business. We
enhanced our leadership team; better aligned our
product and distribution efforts; and reinforced our
business intelligence capabilities. Our team is engaged
and motivated. The right people, strategy and tools are
in place. We remain focused on driving value to
advisors and intermediary clients and earning a
greater share of flows in equity, fixed income and
multi-asset products.
Our retail business is complemented by a strong and
growing traditional third-party institutional business.
We manage it globally — across sales, consultant
relations and client service. We’re earning important
equity and fixed income mandates in the U.S., Europe and Asia. We’ve generated
several quarters of positive flows and have a solid new business pipeline.
Financially, Asset Management delivered a record year. Operating net
revenues grew 5% to $3.3 billion, pretax operating earnings were up 14%
to $788 million and our adjusted net pretax operating margin was a
competitive 40%.
In Asset Management, we’re focused on our clients and are channeling
resources to the areas where we see the best growth opportunities.
We’re moving in a positive direction, and I feel good about the
opportunities before us.
Transforming our business mix and deploying capital
The effective execution of our growth strategy is transforming our
business mix and reinforcing our ability to deliver shareholder
value consistently.
Advice & Wealth Management and Asset Management
generated 64% of 2014 pretax operating earnings, up
from 45% in 2010. The strong growth in these
fee-based, higher P/E businesses is complemented by the
strength, stability and differentiation of our Protection
and Annuity businesses.
Our financial strength and capital position
differentiate Ameriprise. Our diversified model
generates significant free cash flow. As we’ve
grown, we’ve prudently reduced overall capital
requirements — a combination that has
allowed us to continue to invest in the
business while returning capital to
shareholders at one of the highest rates
in financial services.
Annual Report 2014 | 11 10 | Annual Report 2014
Our culture of giving back is integral to who we are
at Ameriprise. Our employees and financial advisors
gave more than ever in 2014. We support them in
their giving of time and money through volunteer
programs, company gift matching and our Annual
Giving Campaign. We’re proud of the collective
difference we make through 6,000 nonprofits
across the globe.
• 66,000 volunteer hours
• $12 million in grants, individual giving
and matching funds
• We continue to set the bar on corporate
giving campaigns with 80 percent of
corporate employees giving through our
Annual Giving Campaign.
Respect for individuals and for the
communities in which we live and work
One in six Americans continue to struggle with
hunger. We’re working to change that. In 2014,
Ameriprise, our employees and financial advisors
donated more than 10 million meals. Since beginning
our partnership with Feeding America® in 2009,
we have donated more than 40 million meals and
130,000 volunteer hours to support hunger relief.
In 2014, Ameriprise held its fifth annual
National Day of Service with more than 12,000
Ameriprise employees, financial advisors and
clients volunteering at Feeding America food banks
and other hunger relief organizations across all 50
states, Washington, D.C., and in the U.K.
Thank you
We had an excellent year in 2014. The results we achieved are the continuation of the
decisions and steps we’ve taken to further strengthen our position as a financial services
leader. We remain sharply focused on serving our clients’ needs and capturing growth
opportunities.
A company is only as strong as the people behind it. Earning trust for the way
we work with our clients is paramount to all of us at Ameriprise. In fact, we
were ranked the second-most trusted among all investment firms in 2014.
Our engagement with employees is industry leading and an important
differentiator. We have a talented and committed team that has
executed our plans well.
From our commitment to clients to our opportunity to serve more clients
with strong products and solutions supported by our leading capabilities
and resources, we have everything we need to continue our success.
To our clients, thank you for placing your trust in Ameriprise. We value
you and your business and will continue to work on your behalf.
To our more than 19,000 employees and advisors, thank you for
all that you do for our clients and the dedication you bring to
your work.
To my fellow members of the Ameriprise Financial Board
of Directors, thank you for your counsel and support.
And finally, to you, our shareholders, thank you for your
trust and confidence in Ameriprise. We will continue to
do all that we can to reward it.
Sincerely,
James M. Cracchiolo
Chairman and Chief Executive Officer
A
Culture
of
Giving Back
During the year, we raised our quarterly dividend again, increasing it 12% — the seventh
increase over the past five years. We also announced a new $2.5 billion share repurchase
authorization, which we’ve put to work. In 2014, we returned $1.8 billion to shareholders,
marking the fourth consecutive year we returned more than 100% of our operating
earnings to shareholders, while continuing to hold more than $2 billion in excess capital
and maintaining our strong ratings.
As I look forward, our goal is to continue to return a large majority of our earnings to
shareholders annually. I believe that as we execute our strategy, the contributions from
Advice & Wealth Management and Asset Management will continue to expand.
Respect for individuals and for the
communities in which we live and work
One in six Americans continue to struggle with
hunger. We’re working to change that. In 2014,
Ameriprise, our employees and financial advisors
donated more than 10 million meals. Since beginning
our partnership with Feeding America® in 2009,
we have donated more than 40 million meals and
130,000 volunteer hours to support hunger relief.
In 2014, Ameriprise held its fifth annual
National Day of Service with more than 12,000
Ameriprise employees, financial advisors and
clients volunteering at Feeding America food banks
and other hunger relief organizations across all 50
states, Washington, D.C., and in the U.K.
Thank you
We had an excellent year in 2014. The results we achieved are the continuation of the
decisions and steps we’ve taken to further strengthen our position as a financial services
leader. We remain sharply focused on serving our clients’ needs and capturing growth
opportunities.
A company is only as strong as the people behind it. Earning trust for the way
we work with our clients is paramount to all of us at Ameriprise. In fact, we
were ranked the second-most trusted among all investment firms in 2014.
Our engagement with employees is industry leading and an important
differentiator. We have a talented and committed team that has
executed our plans well.
From our commitment to clients to our opportunity to serve more clients
with strong products and solutions supported by our leading capabilities
and resources, we have everything we need to continue our success.
To our clients, thank you for placing your trust in Ameriprise. We value
you and your business and will continue to work on your behalf.
To our more than 19,000 employees and advisors, thank you for
all that you do for our clients and the dedication you bring to
your work.
To my fellow members of the Ameriprise Financial Board
of Directors, thank you for your counsel and support.
And finally, to you, our shareholders, thank you for your
trust and confidence in Ameriprise. We will continue to
do all that we can to reward it.
Sincerely,
James M. Cracchiolo
Chairman and Chief Executive Officer
During the year, we raised our quarterly dividend again, increasing it 12% — the seventh
increase over the past five years. We also announced a new $2.5 billion share repurchase
authorization, which we’ve put to work. In 2014, we returned $1.8 billion to shareholders,
marking the fourth consecutive year we returned more than 100% of our operating
earnings to shareholders, while continuing to hold more than $2 billion in excess capital
and maintaining our strong ratings.
As I look forward, our goal is to continue to return a large majority of our earnings to
shareholders annually. I believe that as we execute our strategy, the contributions from
Advice & Wealth Management and Asset Management will continue to expand.
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 financial institution, and involve investment risks, including possible loss of principal and fluctuation 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, 2014.
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of
funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.)
The Morningstar Rating™ is for class Z shares only; other classes may have different performance characteristics and may have different ratings.
The following describes the principal subsidiaries that conduct the financial planning, asset accumulation and income, and protection business 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 affiliate 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.
Sources: #1 Customer Experience – Investment firm category (“The Customer Experience Index, 2014” Forrester Research, Inc.); #2 Most Trusted Firm – Investment firm category (2014 Temkin Ratings); Highest Forgiveness Rating – Investment firm category (2014 Temkin Ratings); Recognized as “customer-obsessed” firm – Investment firm category (Forrester Customer Advocacy: How US Consumers Rate Their Financial Services Firms, November 2013); #1 provider of quality financial advice (Cogent Reports – Investor Brandscape, Dec. 2014); Social media (wealthmanagement.com – 2015); #2 mutual fund advisory AUM – Cerulli Edge Managed Accounts through 3Q14; #5 IRA roll-over destination – Cogent Reports, Feb 2015; #30 Global Asset Manager – Pensions & Investments – Nov. 10, 2014; #11 LT MF manager – ICI data through 3Q14; #5 retail AUM in UK - investmentuk.org; top 10 VUL provider – LIMRA through 3Q14; see ir.ameriprise.com for current financial strength ratings.
Ameriprise helped pioneer the financial planning process more than 30 years ago. We have more financial planning clients and more CERTIFIED FINANCIAL PLANNER professionals than any other company in the U.S. based on data filed at adviserinfo.sec.gov and documented by the CFP Board of Standards, as of 12-31-13.
($ in millions) 2014 2013 2012
Total net revenues $12,268 $11,199 $10,217 Less: Revenues attributable to
the CIEs 651 345 71
Less: Net realized gains 37 7 7 Less: Market impact on indexed
universal life benefits (11) (10) – Less: Integration/restructuring
charges – – (4)
Operating total net revenues $11,591 $10,857 $10,143
($ in millions) 2014 2013 2012 2009 Net income attributable to Ameriprise Financial $1,619 $1,334 $1,029 $634 Less: Income (loss) from discontinued
operations, net of tax (2) (3) (2) 1 Net income from continuing operations
attributable to Ameriprise Financial 1,621 1,337 1,031 633 Less: Adjustments(1) (41) (123) (214) (88)
Operating earnings $1,662 $1,460 $1,245 $721 Ameriprise Financial shareholders’
equity(2) $8,270 $8,582 $9,071 $6,431
Less: Assets and liabilities held
for sale(2) – – – 100
Less: Accumulated other
comprehensive income (loss), net of tax "AOCI"(2)
734 821 1,001 (436) Ameriprise Financial shareholders’ equity
from continuing operations excluding AOCI(2)
7,536 7,761 8,070 6,767 Less: Equity impacts attributable
to the consolidated investment entities(2)
311 333 397 – Operating equity(2) $7,225 $7,428 $7,673 $6,767
Return on equity from continuing
operations, excluding AOCI 21.5% 17.2% 12.8% 9.4% Operating return on equity,
excluding AOCI(3) 23.0% 19.7% 16.2% 10.7%
($ in millions) 2014
Asset Management operating total net revenues $3,320 Less: Distribution pass through revenues 929 Less: Subadvisory and other pass through revenues 400 Asset Management adjusted operating revenues $1,991 Asset Management pretax operating earnings $788
Less: Operating net investment income 30 Add: Amortization of intangibles 34 Asset Management adjusted operating earnings $792 Asset Management adjusted net pretax
operating margin 39.8%
(1) Adjustments reflect the trailing twelve months’ sum of after-tax net realized gains/losses; market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; and integration/ restructuring charges. After-tax is calculated using the statutory tax rate of 35%. (2) Amounts represent the five-point average of quarter-end balances, except for 2009. Amounts for 2009 represent a two-point average of beginning of year and end of year balances. (3) Operating return on equity excluding accumulated other comprehensive income/loss (AOCI) is calculated using the trailing twelve months of earnings excluding the after-tax net realized gains/losses; market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; integration/restructuring charges; and discontinued operations in the numerator, and Ameriprise Financial shareholders’ equity excluding AOCI; the impact of consolidating investment entities; and the assets and liabilities held for sale using a five-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory tax rate of 35%.
($ in millions, except per share amounts) 2014 2013 2012 2014 2013 2012 Net income attributable to Ameriprise Financial $1,619 $1,334 $1,029 $8.30 $6.44 $4.62 Less: Income (loss) from discontinued operations, net of tax (2) (3) (2) (0.01) (0.02) (0.01) Net income from continuing operations attributable to Ameriprise Financial 1,621 1,337 1,031 8.31 6.46 4.63 Less: Net realized gains, net of tax(1) 24 5 5 0.12 0.02 0.02
Add: Integration/restructuring charges, net of tax(1) – 9 46 – 0.04 0.21
Add: Market impact on variable annuity guaranteed benefits, net of tax(1) 61 111 173 0.31 0.53 0.77
Add: Market impact on indexed universal life benefits, net of tax(1) 4 8 – 0.02 0.04 –
Operating earnings $1,662 $1,460 $1,245 $8.52 $7.05 $5.59
(1) Calculated using the statutory tax rate of 35%.
Ameriprise Financial, Inc.
2014 Form 10-K
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.
Sources: #1 Customer Experience – Investment firm category (“The Customer Experience Index, 2014” Forrester Research, Inc.); #2 Most Trusted Firm – Investment firm category (2014 Temkin Ratings); Highest Forgiveness Rating – Investment firm category (2014 Temkin Ratings); Recognized as “customer-obsessed” firm – Investment firm category (Forrester Customer Advocacy: How US Consumers Rate Their Financial Services Firms, November 2013); #1 provider of quality financial advice (Cogent Reports – Investor Brandscape, Dec. 2014); Social media (wealthmanagement.com – 2015); #2 mutual fund advisory AUM – Cerulli Edge Managed Accounts through 3Q14; #5 IRA roll-over destination – Cogent Reports, Feb 2015; #30 Global Asset Manager – Pensions & Investments – Nov. 10, 2014; #11 LT MF manager – ICI data through 3Q14; #5 retail AUM in UK - investmentuk.org; top 10 VUL provider – LIMRA through 3Q14; see ir.ameriprise.com for current financial strength ratings.
Ameriprise helped pioneer the financial planning process more than 30 years ago. We have more financial planning clients and more CERTIFIED FINANCIAL PLANNER professionals than any other company in the U.S. based on data filed at adviserinfo.sec.gov and documented by the CFP Board of Standards, as of 12-31-13.
($ in millions) 2014 2013 2012 2009 Net income attributable to Ameriprise Financial $1,619 $1,334 $1,029 $634 Less: Income (loss) from discontinued
operations, net of tax (2) (3) (2) 1 Net income from continuing operations
attributable to Ameriprise Financial 1,621 1,337 1,031 633 Less: Adjustments(1) (41) (123) (214) (88)
Operating earnings $1,662 $1,460 $1,245 $721 Ameriprise Financial shareholders’
equity(2) $8,270 $8,582 $9,071 $6,431
Less: Assets and liabilities held
for sale(2) – – – 100
Less: Accumulated other
comprehensive income (loss), net of tax "AOCI"(2)
734 821 1,001 (436) Ameriprise Financial shareholders’ equity
from continuing operations excluding AOCI(2)
7,536 7,761 8,070 6,767 Less: Equity impacts attributable
to the consolidated investment entities(2)
311 333 397 – Operating equity(2) $7,225 $7,428 $7,673 $6,767
Return on equity from continuing
operations, excluding AOCI 21.5% 17.2% 12.8% 9.4% Operating return on equity,
excluding AOCI(3) 23.0% 19.7% 16.2% 10.7%
(1) Adjustments reflect the trailing twelve months’ sum of after-tax net realized gains/losses; market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; and integration/ restructuring charges. After-tax is calculated using the statutory tax rate of 35%. (2) Amounts represent the five-point average of quarter-end balances, except for 2009. Amounts for 2009 represent a two-point average of beginning of year and end of year balances. (3) Operating return on equity excluding accumulated other comprehensive income/loss (AOCI) is calculated using the trailing twelve months of earnings excluding the after-tax net realized gains/losses; market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; integration/restructuring charges; and discontinued operations in the numerator, and Ameriprise Financial shareholders’ equity excluding AOCI; the impact of consolidating investment entities; and the assets and liabilities held for sale using a five-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory tax rate of 35%.
($ in millions, except per share amounts) 2014 2013 2012 2014 2013 2012 Net income attributable to Ameriprise Financial $1,619 $1,334 $1,029 $8.30 $6.44 $4.62 Less: Income (loss) from discontinued operations, net of tax (2) (3) (2) (0.01) (0.02) (0.01) Net income from continuing operations attributable to Ameriprise Financial 1,621 1,337 1,031 8.31 6.46 4.63 Less: Net realized gains, net of tax(1) 24 5 5 0.12 0.02 0.02
Add: Integration/restructuring charges, net of tax(1) – 9 46 – 0.04 0.21
Add: Market impact on variable annuity guaranteed benefits, net of tax(1) 61 111 173 0.31 0.53 0.77
Add: Market impact on indexed universal life benefits, net of tax(1) 4 8 – 0.02 0.04 –
Operating earnings $1,662 $1,460 $1,245 $8.52 $7.05 $5.59
(1) Calculated using the statutory tax rate of 35%.
