Ameriprise Financial Reports Fourth Quarter 2012 Results

Wed Jan 30, 2013 4:05pm EST

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Fourth quarter 2012 net income from continuing operations attributable to
Ameriprise Financial per diluted share was $1.80. Fourth quarter 2012 operating
earnings per diluted share grew 31 percent to $1.71.

Full year 2012 net income from continuing operations attributable to Ameriprise
Financial per diluted share was $4.63. Full year 2012 operating earnings per
diluted share grew 8 percent to $5.59.
MINNEAPOLIS--(Business Wire)--
Ameriprise Financial, Inc. (NYSE: AMP) today reported fourth quarter 2012 net
income from continuing operations attributable to Ameriprise Financial of $388
million, or $1.80 per diluted share, compared to $223 million, or $0.95 per
diluted share, a year ago. Fourth quarter 2012 operating earnings were $367
million, or $1.71 per diluted share, compared to $308 million, or $1.31 per
diluted share, a year ago. 

Fourth quarter 2012 operating net revenues increased 6 percent from a year ago
to $2.6 billion driven by strong Ameriprise advisor client net inflows,
increased client activity and market appreciation. Growth in revenue was
partially offset by the decline in investment income from low interest rates as
well as outflows in asset management. 

Fourth quarter 2012 operating expenses increased 5 percent to $2.2 billion,
reflecting higher distribution-related expenses and previously disclosed
catastrophe losses related to Superstorm Sandy. General and administrative
expenses were flat compared to a year ago as ongoing expense controls offset
investments in the business. 

The company continues to maintain a strong capital position, generate strong
free cash flow and return capital to shareholders. The company`s excess capital
position remains above $2 billion after returning $446 million to shareholders
through share repurchases and dividends during the quarter. 

Return on shareholders` equity excluding accumulated other comprehensive income
(AOCI) was 12.8 percent for the 12 months ended December 31, 2012. Operating
return on equity excluding AOCI was 16.2 percent for the same time period. 

"We had a solid quarter led by strong results in our advice and wealth
management business," said Jim Cracchiolo, chairman and chief executive officer.
"We reported a record high for assets under management and administration driven
by strong client net inflows into fee-based accounts and equity market
appreciation. We`re executing our strategy well and maintaining tight expenses
to offset headwinds from low interest rates." 

"We continue to generate significant free cash flow and benefit from our strong
balance sheet and capital position. Our operating return on equity ended the
year above 16 percent and we returned more than 130 percent of our full-year
operating earnings to shareholders through ongoing share repurchases and
dividends."

                                                                                                                                                                                      
 Ameriprise Financial, Inc.                                                                                                                                                           
 Fourth Quarter Summary                                                                                                                                                               
                                                                                                                                                                                      
 (in millions, except per share amounts, unaudited)                            Quarter Ended                                        Per Diluted Share                                 
                                                                               December 31,                                         Quarter Ended                                     
                                                                                                                                    December 31,                                      
                                                                               2012                  2011           % Better/       2012                  2011          % Better/     
                                                                                                                    (Worse)                                             (Worse)       
 Net income from continuing operations attributable to Ameriprise Financial    $    388              $    223       74     %        $    1.80             $    0.95     89     %      
 Adjustments, net of tax(1)                                                                                                                                                           
 (see reconciliation on p. 11)                                                      (21    )              85        NM                   (0.09  )              0.36     NM            
 Operating earnings                                                            $    367              $    308       19     %        $    1.71             $    1.31     31     %      
                                                                                                                                                                                      
 Weighted average common shares outstanding:                                                                                                                                          
 Basic                                                                              210.8                 230.6                                                                       
 Diluted                                                                            215.1                 234.5                                                                       
                                                                                                                                                                                      
 (1)After-tax is calculated using the statutory tax rate of 35%.                                                                                                                      
 NM Not Meaningful - variance of greater than 100%                                                                                                                                    
                                                                                                                                                                                      


The company believes the presentation of operating earnings best represents the
economics of the business. Operating earnings, after-tax, exclude the
consolidation of certain investment entities; net realized gains or losses;
integration and restructuring charges; the market impact on variable annuity
guaranteed living benefits net of hedges and related deferred acquisition costs
(DAC) and deferred sales inducement costs (DSIC) amortization; and income or
loss from discontinued operations. 

Fourth quarter operating earnings included the following after-tax items(1):

                                                                                                                             
                                                             Quarter Ended                   Per Diluted Share               
                                                             December 31,                    Quarter Ended                   
                                                                                             December 31,                    
 (in millions, except per share amounts, unaudited)          2012                2011        2012                  2011      
 Variable annuity model revision                             $    28             $    -      $    0.13             $    -    
 Tax adjustment from prior periods                           $    16             $    -      $    0.07             $    -    
 Settlement with a third-party service provider              $    10             $    -      $    0.05             $    -    
 Previously disclosed Auto & Home Superstorm Sandy losses    $    (13  )         $    -      $    (0.06  )         $    -    
                                                                                                                             
 (1)After-tax is calculated using the statutory tax rate of 35%.                                                             
                                                                                                                             


Overall results in the quarter were solid and included the items noted in the
table above. In addition, there are other items that are discussed in more
detail in the segment commentary and include year-end compensation related
true-ups, elevated severance expense, and reserve strengthening in Auto and
Home, partially offset by favorable taxes. 

Taxes

The fourth quarter 2012 operating effective tax rate was 17.2 percent compared
to 25.2 percent a year ago. 

During the quarter, the company completed a periodic review of its deferred tax
balance. This resulted in the recognition of a $16 million decrease in tax
expense related to prior years. In addition, the dividend received deduction in
the fourth quarter of 2012 was higher than in prior periods reflecting the
acceleration of dividends paid by companies in the fourth quarter in
anticipation of tax law changes in 2013. 

The company`s full year operating effective tax rate, excluding the prior years`
recognized benefit, was 27.5 percent, which is in line with the previous
estimate the company provided in the third quarter. The company estimates that
its 2013 operating effective tax rate will be in the 26 to 28 percent range. 

Fourth Quarter 2012 Business Highlights

* Assets under management and administration increased 8 percent to $681 billion
- an all-time high. Strong asset growth was driven by market appreciation and
Ameriprise advisor client net inflows. 
* Ameriprise advisor client assets grew 14 percent to $353 billion driven by
strong net inflows and market appreciation. 
* Wrap net inflows of $2.1 billion in the quarter increased 53 percent,
contributing to a 21 percent growth in total wrap assets. 
* Operating net revenue per advisor increased 11 percent to $103,000 for the
quarter driven by higher client assets and improved transactional volumes. 
* The company continued to recruit experienced advisors to Ameriprise, adding 68
advisors in the quarter and 382 advisors for the full year. 
* Asset Management segment AUM increased 5 percent to $455 billion driven by
market appreciation. Net outflows of $3.9 billion in the quarter were driven by
net outflows in institutional portfolios that included legacy insurance assets,
while retail net flows were essentially flat. 
* On a global basis, the company had 111 four- and five-star Morningstar-rated
funds, including 51 Columbia Management funds and 60 Threadneedle funds. 
* RiverSource Life continued to generate strong indexed universal life insurance
sales with total life insurance cash sales increasing during each of the last
five quarters. 
* Ameriprise Auto & Home continued to generate solid core business results with
policies in force growing 9 percent. 
* During the quarter, the company ceased operations of Ameriprise Bank, FSB as
it transitions to a national trust institution. Formal regulatory submissions
have been filed and final approval is pending. 
* Bloomberg, in partnership with the National Conference on Citizenship and
Points of Light, recognized Ameriprise Financial as one of America`s most
community-minded companies in its Civic 50 ranking.

Balance Sheet Summary as of December 31, 2012

* Cash and cash equivalents were $2.4 billion, with $0.9 billion at the holding
company. In addition, the holding company holds more than $0.8 billion in
high-quality, short-duration securities. 
* Excess capital remained at $2+ billion after the return of $446 million to
shareholders during the quarter through share repurchases and dividends. 
* The company repurchased 5.9 million shares of its common stock in the quarter
for $350 million. 
* The total investment portfolio ended the quarter with $3.0 billion in net
unrealized gains. 
* During the quarter, Ameriprise Bank returned $250 million of capital to the
parent company.

Segment Summaries

                                                                                                                  
 Ameriprise Financial, Inc.                                                                                       
 Advice & Wealth Management Segment Operating Results                                                             
                                                                                                                  
 (in millions, unaudited)                                 Quarter Ended December 31,                % Better/     
                                                                                                    (Worse)       
                                                          2012                    2011              
 Advice & Wealth Management                                                                                       
 Net revenues                                             $       1,005           $       905       11     %      
 Expenses                                                         886                     822       (8     )      
 Pretax operating earnings                                $       119             $       83        43            
                                                                                                                  
 Item included in operating earnings:                                                                             
 Bank earnings                                            $       0               $       13        NM            
                                                                                                                  
                                                          Quarter Ended December 31,                % Better/     
                                                                                                    (Worse)       
                                                          2012                    2011              
 Retail client assets (billions)                          $       353             $       310       14     %      
 Mutual fund wrap net flows (billions)                    $       2.1             $       1.4       53     %      
 Operating net revenue per branded advisor (thousands)    $       103             $       93        11     %      
                                                                                                                  
                                                                                                                  
 NM Not Meaningful - variance of greater than 100%                                                                
                                                                                                                  


Advice & Wealth Management pretax operating earnings increased 43 percent to
$119 million reflecting strong revenue growth, continued expense management and
ongoing investments in the business. Fourth quarter 2012 pretax operating margin
was 11.8 percent compared to 9.2 percent a year ago and included the earnings
impact from the company`s decision to transition out of the banking business.
Excluding this impact, management estimates that the segment pretax margin would
have been 13.1 percent for the fourth quarter and 11.8 percent for the full
year. 

Operating net revenues increased 11 percent to $1.0 billion driven by strong
retail client net inflows, higher client transactional volumes and market
appreciation, partially offset by the continued impact of low interest rates and
the previously mentioned bank transition. Total retail client assets grew 14
percent to a new high of $353 billion. 

Operating expenses increased 8 percent to $886 million, primarily reflecting
higher distribution expenses associated with strong growth in client assets and
higher activity levels. General and administrative expenses declined by 3
percent, demonstrating on-going expense discipline, lower expenses associated
with completion of the brokerage platform conversion, and lower ongoing bank
expense, partially offset by higher year-end compensation expense true-ups.

                                                                                                         
 Ameriprise Financial, Inc.                                                                              
 Asset Management Segment Operating Results                                                              
                                                                                                         
 (in millions, unaudited)                Quarter Ended December 31,                        % Better/     
                                                                                           (Worse)       
                                         2012                        2011                  
 Asset Management                                                                                        
 Net revenues                            $      740                  $      702            5      %      
 Expenses                                       599                         575            (4     )      
 Pretax operating earnings               $      141                  $      127            11            
                                                                                                         
 Item included in operating earnings:                                                                    
 CDO liquidation benefit                 $      -                    $      11             NM            
                                                                                                         
                                         Quarter Ended December 31,                        % Better/     
                                                                                           (Worse)       
                                         2012                        2011                  
 Total segment AUM(1) (billions)         $      455                  $      436            5      %      
 Columbia Management AUM                 $      330                  $      326            1      %      
 Threadneedle AUM                        $      128                  $      114            12     %      
                                                                                                         
 Total segment net flows (billions)      $      (3.9   )             $      3.8    (2)     NM            
 Retail net flows                        $      (0.0   )             $      (0.2   )       NM            
 Institutional net flows                 $      (3.3   )             $      5.0    (2)     NM            
 Alternative net flows                   $      (0.6   )             $      (1.0   )       38     %      
                                                                                                         
 (1) Subadvisory eliminations between Columbia Management and Threadneedle are included in the company`s Fourth Quarter 2012 Statistical Supplement available at ir.ameriprise.com. 
 (2) Includes $14 billion of inflow from Liverpool Victoria.                                             
                                                                                                         
 NM Not Meaningful - variance of greater than 100%                                                       
                                                                                                         


Asset Management pretax operating earnings were $141 million, up 11 percent from
a year ago, driven by equity market appreciation and continued revenue and
expense reengineering, partially offset by the impact of net outflows. Earnings
in the year ago quarter included a favorable $11 million impact from the
liquidation of a collateralized debt obligation (CDO) that did not recur.
Excluding this item, pretax operating earnings growth would have been 22
percent. Fourth quarter 2012 adjusted net pretax operating margin was 33.6
percent compared to 31.4 percent a year ago. 

Operating net revenues increased 5 percent to $740 million, primarily driven by
growth in assets from market appreciation and performance fees. Revenue growth
reflected pressure from net outflows and the shift in flows from equity to fixed
income, as well as $15 million of lower revenues from the CDO liquidation in the
prior year period. 

Operating expenses increased 4 percent to $599 million. Distribution expenses
increased 6 percent primarily due to market appreciation. General and
administrative expenses increased by $8 million from a year ago due to market
appreciation and increased compensation costs associated with higher performance
fees, partially offset by expense reengineering. 

Total segment assets under management increased 5 percent from a year ago to
$455 billion, reflecting market appreciation, partially offset by net outflows. 

Asset Management net outflows of $3.9 billion in the quarter were driven by net
outflows in institutional portfolios, while retail net flows were essentially
flat. Strong Threadneedle retail net inflows were offset by net outflows at
Columbia, which included reinvested dividends. Institutional net outflows of
$3.3 billion were driven by $1.6 billion of outflows of legacy insurance assets
managed by Threadneedle and Columbia.

                                                                                                                     
 Ameriprise Financial, Inc.                                                                                          
 Annuities Segment Operating Results                                                                                 
                                                                                                                     
 (in millions, unaudited)                               Quarter Ended December 31,                     % Better/     
                                                                                                       (Worse)       
                                                        2012                        2011               
 Annuities                                                                                                           
 Net revenues                                           $      636                  $      634         -             
 Expenses                                                      465                         470         1      %      
 Pretax operating earnings                              $      171                  $      164         4             
                                                                                                                     
 Variable annuity pretax operating earnings             $      129                  $      118         9      %      
 Fixed annuity pretax operating earnings                       42                          46          (9     )      
 Total pretax operating earnings                        $      171                  $      164         4             
                                                                                                                     
 Items included in operating earnings:                                                                               
 Market impact on DAC and DSIC (mean reversion)         $      2                    $      16          (88    )%     
 Index annuity reserve adjustment                       $      -                    $      (8     )    NM            
 Variable annuity liability model revision              $      43                   $      -           NM            
                                                                                                                     
                                                        Quarter Ended December 31,                     % Better/     
                                                                                                       (Worse)       
                                                        2012                        2011               
 Variable annuity ending account balances (billions)    $      68.1                 $      62.3        9      %      
 Variable annuity net flows (millions)                  $      (214   )             $      227         NM            
 Fixed annuity ending account balances (billions)       $      13.8                 $      14.2        (3     )%     
 Fixed annuity net flows (millions)                     $      (303   )             $      (158   )    (92    )%     
                                                                                                                     
 NM Not Meaningful - variance of greater than 100%                                                                   
                                                                                                                     


Annuities pretax operating earnings increased 4 percent to $171 million. Results
in the quarter included a favorable $43 million impact from a variable annuity
living benefit liability model revision that resulted in a reduction in
reserves. The reserve release in the quarter represented a cumulative catch up
primarily related to prior periods. This revision aligns the model to more
accurately reflect best estimate assumptions for living benefit utilization
going forward. 

Variable annuity operating earnings increased 9 percent to $129 million and
included a favorable $43 million from the variable annuity living benefit
liability model revision and an unfavorable $14 million from the market impact
on DAC and DSIC compared to last year. Adjusting for these items, variable
annuity earnings declined $18 million as market appreciation was more than
offset by higher reserve funding and higher amortization of DAC primarily
related to the unlocking of interest rate assumptions in the third quarter of
2012. 

Fixed annuity operating earnings declined 9 percent to $42 million primarily
from the continued low interest rate environment. In addition, the year-ago
quarter included an $8 million unfavorable reserve adjustment for indexed
annuities. Excluding this item, fixed annuity earnings declined 22 percent. 

RiverSource variable annuity account balances increased 9 percent to $68 billion
driven by market appreciation. Variable annuity net outflows in the quarter
reflected the closed book of annuities sold through third parties and $26
million of net inflows in the Ameriprise channel. RiverSource fixed annuity
account balances declined 3 percent to $14 billion due to ongoing net outflows
resulting from low client demand given current interest rates.

                                                                                                                      
 Ameriprise Financial, Inc.                                                                                           
 Protection Segment Operating Results                                                                                 
                                                                                                                      
 (in millions, unaudited)                                    Quarter Ended December 31,                 % Better/     
                                                                                                        (Worse)       
                                                             2012                    2011               
 Protection                                                                                                           
 Net revenues                                                $       542             $       529        2      %      
 Expenses                                                            449                     416        (8     )      
 Pretax operating earnings                                   $       93              $       113        (18    )      
                                                                                                                      
 Items included in operating earnings:                                                                                
 Market impact on DAC (mean reversion)                       $       -               $       1          NM            
 Previously disclosed Auto & Home Superstorm Sandy losses    $       20              $       -          NM            
                                                                                                                      
                                                             Quarter Ended December 31,                 % Better/     
                                                                                                        (Worse)       
                                                             2012                    2011               
 Life insurance in force (billions)                          $       191             $       191        -             
 VUL/UL ending account balances (billions)                   $       9.9             $       9.2        7      %      
 Auto & Home policies in force (thousands)                           756                     696        9      %      
                                                                                                                      
 NM Not Meaningful - variance of greater than 100%                                                                    
                                                                                                                      


Protection pretax operating earnings decreased 18 percent to $93 million as
strong results in life and health were more than offset by lower auto and home
earnings. 

Life and health earnings reflect favorable claims experience and lower expenses.
Life and health insurance cash sales increased 56 percent to $84 million from
strong growth in indexed universal life and variable universal life sales. 

Auto and home results reflect $20 million of higher claims from Superstorm
Sandy, as well as reserve strengthening related primarily to higher severity in
auto personal injury claims that carriers are experiencing across the industry.
Steady growth in auto and home policies continued, up 9 percent compared to a
year ago.

                                                                                                                
 Ameriprise Financial, Inc.                                                                                     
 Corporate & Other Segment Operating Results                                                                    
                                                                                                                
 (in millions, unaudited)                          Quarter Ended December 31,                     % Better/     
                                                                                                  (Worse)       
                                                   2012                        2011               
 Corporate & Other                                                                                              
 Net revenues                                      $      -                    $      (6     )    NM            
 Expenses                                                 81                          69          (17    )%     
 Pretax operating loss                             $      (81    )             $      (75    )    (8     )      
                                                                                                                
 Item included in operating earnings:                                                                           
 Settlement with a third-party service provider    $      15                   $      -           NM            
                                                                                                                
 NM Not Meaningful - variance of greater than 100%                                                              
                                                                                                                


Corporate & Other pretax operating loss was $81 million for the quarter compared
to $75 million a year ago. The change from the prior year was impacted by higher
expenses associated with severance and year-end compensation true-ups, as well
as impacts associated with the transition of the bank. Partially offsetting
these items was a $15 million positive impact related to settlement with a third
party service provider. 

At Ameriprise Financial, we have been helping people feel confident about their
financial future since 1894. With outstanding asset management, advisory and
insurance capabilities and a nationwide network of 10,000 financial advisors, we
have the strength and expertise to serve the full range of individual and
institutional investors' financial needs. For more information, or to find an
Ameriprise financial advisor, visit ameriprise.com. 

Ameriprise Financial Services, Inc. offers financial planning services,
investments, insurance and annuity products. Columbia Funds are distributed by
Columbia Management Investment Distributors, Inc., member FINRA and managed by
Columbia Management Investment Advisers, LLC. Threadneedle International Limited
is an SEC- and FSA-registered investment adviser affiliate of Columbia
Management Investment Advisers, LLC based in the U.K. Auto and home insurance is
underwritten by IDS Property Casualty Insurance Company, or in certain states,
Ameriprise Insurance Company, both in De Pere, WI. RiverSource insurance and
annuity products are issued by RiverSource Life Insurance Company, and in New
York only by RiverSource Life Insurance Co. of New York, Albany, New York. Only
RiverSource Life Insurance Co. of New York is authorized to sell insurance and
annuity products in the state of New York. These companies are all part of
Ameriprise Financial, Inc. CA License #0684538. RiverSource Distributors, Inc.
(Distributor), Member FINRA. 

Forward-Looking Statements

This news release contains forward-looking statements that reflect management`s
plans, estimates and beliefs. Actual results could differ materially from those
described in these forward-looking statements. Examples of such forward-looking
statements include:

* the statement in this news release that the company expects its 2013 operating
effective tax rate to be in the 26 to 28 percent range; 
* statements of the company`s plans, intentions, positioning, expectations,
objectives or goals, including those relating to asset flows, mass affluent and
affluent client acquisition strategy, client retention and growth of our client
base, financial advisor productivity, retention, recruiting and enrollments,
acquisition integration, general and administrative costs, consolidated tax
rate, return of capital to shareholders, and excess capital position and
financial flexibility to capture additional growth opportunities; 
* other statements about future economic performance, the performance of equity
markets and interest rate variations and the economic performance of the United
States and of global markets; and 
* statements of assumptions underlying such statements.

The words "believe," "expect," "anticipate," "optimistic," "intend," "plan,"
"aim," "will," "may," "should," "could," "would," "likely," "forecast," "on
pace," "project" and similar expressions are intended to identify
forward-looking statements but are not the exclusive means of identifying such
statements. Forward-looking statements are subject to risks and uncertainties,
which could cause actual results to differ materially from such statements. 

Such factors include, but are not limited to:

* conditions in the interest rate, credit default, equity market and foreign
exchange environments, including changes in valuations, liquidity and
volatility; 
* changes in and the adoption of relevant accounting standards, as well as
changes in the litigation and regulatory environment, including ongoing legal
proceedings and regulatory actions, the frequency and extent of legal claims
threatened or initiated by clients, other persons and regulators, and
developments in regulation and legislation, including the rules and regulations
implemented or to be implemented in connection with the Dodd-Frank Wall Street
Reform and Consumer Protection Act; 
* investment management performance and distribution partner and consumer
acceptance of the company`s products; 
* effects of competition in the financial services industry, including pricing
pressure, the introduction of new products and services and changes in product
distribution mix and distribution channels; 
* changes to the company`s reputation that may arise from employee or affiliated
advisor misconduct, legal or regulatory actions, perceptions of the financial
services industry generally, improper management of conflicts of interest or
otherwise; 
* the company`s capital structure, including indebtedness, limitations on
subsidiaries to pay dividends, and the extent, manner, terms and timing of any
share or debt repurchases management may effect as well as the opinions of
rating agencies and other analysts and the reactions of market participants or
the company`s regulators, advisors, distribution partners or customers in
response to any change or prospect of change in any such opinion; 
* changes to the availability and cost of liquidity and the Company`s credit
capacity that may arise due to shifts in market conditions, the Company`s credit
ratings and the overall availability of credit; 
* risks of default, capacity constraint or repricing by issuers or guarantors of
investments the company owns or by counterparties to hedge, derivative,
insurance or reinsurance arrangements or by manufacturers of products the
company distributes, experience deviations from the company`s assumptions
regarding such risks, the evaluations or the prospect of changes in evaluations
of any such third parties published by rating agencies or other analysts, and
the reactions of other market participants or the company`s regulators,
advisors, distribution partners or customers in response to any such evaluation
or prospect of changes in evaluation; 
* experience deviations from the company`s assumptions regarding morbidity,
mortality and persistency in certain annuity and insurance products, or from
assumptions regarding market returns assumed in valuing or unlocking DAC and
DSIC or market volatility underlying our valuation and hedging of guaranteed
living benefit annuity riders, or from assumptions regarding anticipated claims
and losses relating to our automobile and home insurance products; 
* changes in capital requirements that may be indicated, required or advised by
regulators or rating agencies; 
* the impacts of the company`s efforts to improve distribution economics and to
grow third-party distribution of its products; 
* the company`s ability to pursue and complete strategic transactions and
initiatives, including acquisitions, divestitures, restructurings, joint
ventures and the development of new products and services; 
* the company`s ability to realize the financial, operating and business
fundamental benefits or to obtain regulatory approvals regarding integrations we
plan for the acquisitions we have completed or may pursue and contract to
complete in the future, as well as the amount and timing of integration
expenses; 
* the ability and timing to realize savings and other benefits from
re-engineering and tax planning; 
* interruptions or other failures in our communications, technology and other
operating systems, including errors or failures caused by third party service
providers, interference or failures caused by third party attacks on our
systems, or the failure to safeguard the privacy or confidentiality of sensitive
information and data on such systems; and 
* general economic and political factors, including consumer confidence in the
economy and the financial industry, the ability and inclination of consumers
generally to invest as well as their ability and inclination to invest in
financial instruments and products other than cash and cash equivalents, the
costs of products and services the company consumes in the conduct of its
business, and applicable legislation and regulation and changes therein,
including tax laws, tax treaties, fiscal and central government treasury policy,
and policies regarding the financial services industry and publicly held firms,
and regulatory rulings and pronouncements.

Management cautions the reader that the foregoing list of factors is not
exhaustive. There may also be other risks that management is unable to predict
at this time that may cause actual results to differ materially from those in
forward-looking statements. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date on which they
are made. Management undertakes no obligation to update publicly or revise any
forward-looking statements. The foregoing list of factors should be read in
conjunction with the "Risk Factors" discussion under Part 1, Item 1A of and
elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2011
and under Part 2, Item 1A of our Quarterly Report on Form 10-Q for the quarter
ended September 30, 2012 available at ir.ameriprise.com. 

The financial results discussed in this news release represent past performance
only, which may not be used to predict or project future results. The financial
results and values presented in this news release and the below-referenced
Statistical Supplement are based upon asset valuations that represent estimates
as of the date of this news release and may be revised in the company`s Annual
Report on Form 10-K for the year ended December 31, 2012. For information about
Ameriprise Financial entities, please refer to the Fourth Quarter 2012
Statistical Supplement available at ir.ameriprise.com and the tables that follow
in this news release.

                                                                                                                                                              
 Ameriprise Financial, Inc.                                                                                                                                   
 Reconciliation Table: Earnings                                                                                                                               
                                                                                                                                                              
                                                                                     Quarter Ended                           Per Diluted Share                
                                                                                     December 31,                            Quarter Ended                    
                                                                                                                             December 31,                     
 (in millions, except per share amounts, unaudited)                                  2012                  2011              2012                  2011       
 Net income attributable to Ameriprise Financial                                     $    389              $    236          $    1.81             $    1.01  
 Less: Income from discontinued operations, net of tax                                    1                     13                0.01                  0.06  
 Net income from continuing operations attributable to Ameriprise Financial               388                   223               1.80                  0.95  
 Add: Market impact on variable annuity guaranteed living benefits, net of tax(1)         30                    72                0.14                  0.30  
 Add: Integration/restructuring charges, net of tax(1)                                    3                     14                0.02                  0.06  
 Add: Net realized losses (gains), net of tax(1)                                          (54    )              (1     )          (0.25  )              -     
 Operating earnings                                                                  $    367              $    308          $    1.71             $    1.31  
                                                                                                                                                              
 Weighted average common shares outstanding:                                                                                                                  
 Basic                                                                                    210.8                 230.6                                         
 Diluted                                                                                  215.1                 234.5                                         
                                                                                                                                                              
 (1) Calculated using the statutory tax rate of 35%.                                                                                                          
                                                                                                                                                              


                                                                                                                                                                  
 Ameriprise Financial, Inc.                                                                                                                                       
 Reconciliation Table: Earnings                                                                                                                                   
                                                                                                                                                                  
                                                                                     Year Ended                              Per Diluted Share                    
                                                                                     December 31,                            Year Ended                           
                                                                                                                             December 31,                         
 (in millions, except per share amounts, unaudited)                                  2012                  2011              2012                  2011           
 Net income attributable to Ameriprise Financial                                     $    1,029            $    1,116        $    4.62             $    4.53      
 Less: Loss from discontinued operations, net of tax                                      (2     )              (60    )          (0.01  )              (0.24  )  
 Net income from continuing operations attributable to Ameriprise Financial               1,031                 1,176             4.63                  4.77      
 Add: Market impact on variable annuity guaranteed living benefits, net of tax(1)         173                   40                0.77                  0.16      
 Add: Integration/restructuring charges, net of tax(1)                                    46                    62                0.21                  0.25      
 Add: Net realized losses (gains), net of tax(1)                                          (5)                   (4     )          (0.02  )              (0.01  )  
 Operating earnings                                                                  $    1,245            $    1,274        $    5.59             $    5.17      
                                                                                                                                                                  
 Weighted average common shares outstanding:                                                                                                                      
 Basic                                                                                    218.7                 241.4                                             
 Diluted                                                                                  222.8                 246.3                                             
                                                                                                                                                                  
 (1) Calculated using the statutory tax rate of 35%.                                                                                                              
                                                                                                                                                                  


                                                                                                                    
 Ameriprise Financial, Inc.                                                                                         
 Reconciliation Table: Total Net Revenues                                                                           
                                                                                                                    
                                            Quarter Ended                       Year Ended                          
                                            December 31,                        December 31,                        
 (in millions, unaudited)                   2012                  2011          2012                   2011         
 Total net revenues                         $    2,674            $    2,582    $    10,217            $    10,192  
 Less: CIEs revenue                              (9     )              126           71                     136     
 Less: Net realized gains                        82                    1             7                      6       
 Less: Integration/restructuring charges         4                     -             (4      )              -       
 Operating total net revenues               $    2,597            $    2,455    $    10,143            $    10,050  
                                                                                                                    


                                                                                                                                   
 Ameriprise Financial, Inc.                                                                                                        
 Reconciliation Table: Total Expenses                                                                                              
                                                                                                                                   
                                                                       Quarter Ended                  Year Ended                   
                                                                       December 31,                   December 31,                 
 (in millions, unaudited)                                              2012             2011          2012             2011        
 Total expenses                                                        $    2,256       $    2,256    $    8,979       $    8,745  
 Less: CIEs expenses                                                        48               81            199              242    
 Less: Market impact on variable annuity guaranteed living benefits         45               111           265              62     
 Less: Integration/restructuring charges                                    9                21            67               95     
 Operating expenses                                                    $    2,154       $    2,043    $    8,448       $    8,346  
                                                                                                                                   


                                                                                               
 Ameriprise Financial, Inc.                                                                    
 Reconciliation Table: Pretax Operating Earnings                                               
                                                                                               
                                 Quarter Ended                  Year Ended                     
                                 December 31,                   December 31,                   
 (in millions, unaudited)        2012             2011          2012              2011         
 Operating total net revenues    $    2,597       $    2,455    $    10,143       $    10,050  
 Operating expenses                   2,154            2,043         8,448             8,346   
 Pretax operating earnings       $    443         $    412      $    1,695        $    1,704   
                                                                                               


                                                                                                                                                                
 Ameriprise Financial, Inc.                                                                                                                                     
 Reconciliation Table: Effective Tax Rate                                                                                                                       
                                                                                                                                                                
                                                                                                             Quarter Ended December 31, 2012                    
 (in millions, unaudited)                                                                                    GAAP                            Operating          
 Income from continuing operations before income tax provision                                               $       418                     $       443        
 Less: Pretax loss attributable to noncontrolling interests                                                          (57     )                       -          
 Income from continuing operations before income tax provision excluding consolidated investment entities    $       475                     $       443        
 Income tax provision from continuing operations                                                             $       87                      $       76         
                                                                                                                                                                
 Effective tax rate                                                                                                  20.8    %                       17.2    %  
 Effective tax rate excluding noncontrolling interests                                                               18.3    %                       17.2    %  
                                                                                                                                                                


                                                                                                                                                                
 Ameriprise Financial, Inc.                                                                                                                                     
 Reconciliation Table: Effective Tax Rate                                                                                                                       
                                                                                                                                                                
                                                                                                             Quarter Ended December 31, 2011                    
 (in millions, unaudited)                                                                                    GAAP                            Operating          
 Income from continuing operations before income tax provision                                               $       326                     $       412        
 Less: Pretax income attributable to noncontrolling interests                                                        45                              -          
 Income from continuing operations before income tax provision excluding consolidated investment entities    $       281                     $       412        
 Income tax provision from continuing operations                                                             $       58                      $       104        
                                                                                                                                                                
 Effective tax rate                                                                                                  17.9    %                       25.2    %  
 Effective tax rate excluding noncontrolling interests                                                               20.7    %                       25.2    %  
                                                                                                                                                                


                                                                                                                                                          
 Ameriprise Financial, Inc.                                                                                                                               
 Reconciliation Table: Effective Tax Rate                                                                                                                 
                                                                                                                                                          
                                                                                                             Year Ended December 31, 2012                 
 (in millions, unaudited)                                                                                    GAAP                        Operating        
 Income from continuing operations before income tax provision                                               $      1,238                $      1,695     
 Less: Pretax loss attributable to noncontrolling interests                                                         (128   )                    -         
 Income from continuing operations before income tax provision excluding consolidated investment entities    $      1,366                $      1,695     
 Income tax provision from continuing operations                                                             $      335                  $      450       
                                                                                                                                                          
 Add: Tax adjustment from prior periods                                                                                                         16        
 Income tax provision from continuing operations excluding tax adjustment                                                                $      466       
                                                                                                                                                          
 Effective tax rate                                                                                                 27.1   %                    26.5   %  
 Effective tax rate excluding noncontrolling interests                                                              24.5   %                    26.5   %  
 Effective tax rate excluding noncontrolling interests and tax adjustment                                                                       27.5   %  
                                                                                                                                                          


                                                                                                    
 Ameriprise Financial, Inc.                                                                         
 Reconciliation Table: Asset Management Adjusted Net Pretax Operating Margin                        
                                                                                                    
                                                       Quarter Ended December 31,                   
 (in millions, unaudited)                              2012                        2011             
 Operating total net revenues                          $      740                  $      702       
 Less: Distribution pass through revenues                     209                         201       
 Less: Subadvisory and other pass through revenues            103                         100       
 Adjusted operating revenues                           $      428                  $      401       
                                                                                                    
 Pretax operating earnings                             $      141                  $      127       
 Less: Operating net investment income                        7                           11        
 Add: Amortization of intangibles                             10                          10        
 Adjusted operating earnings                           $      144                  $      126       
                                                                                                    
 Adjusted net pretax operating margin                         33.6   %                    31.4   %  


                                                                                                                                             
 Ameriprise Financial, Inc.                                                                                                                  
 Reconciliation Table: Return on Equity (ROE) Excluding Accumulated                                                                          
 Other Comprehensive Income "AOCI"                                                                                                           
                                                                                                                                             
                                                                                                    Twelve Months Ended                      
                                                                                                    December 31,                             
 (in millions, unaudited)                                                                           2012                     2011            
 Net income attributable to Ameriprise Financial                                                    $     1,029              $     1,116     
 Less: Loss from discontinued operations, net of tax                                                      (2     )                 (60    )  
 Net income from continuing operations attributable to Ameriprise Financial, as reported                  1,031                    1,176     
 Less: Adjustments (1)                                                                                    (214   )                 (98    )  
 Operating earnings                                                                                 $     1,245              $     1,274     
                                                                                                                                             
 Total Ameriprise Financial, Inc. shareholders` equity                                              $     9,071              $     9,169     
 Less: Assets and liabilities held for sale                                                               -                        30        
 Less: Accumulated other comprehensive income, net of tax                                                 1,001                    701       
 Total Ameriprise Financial, Inc. shareholders` equity from continuing operations excluding AOCI          8,070                    8,438     
 Less: Equity impacts attributable to the consolidated investment entities                                397                      478       
 Operating equity                                                                                   $     7,673              $     7,960     
                                                                                                                                             
 Return on equity, excluding AOCI                                                                         12.8   %                 13.9   %  
 Operating return on equity, excluding AOCI (2)                                                           16.2   %                 16.0   %  
                                                                                                                                             
 (1) Adjustments reflect the trailing twelve months` sum of after-tax net realized gains/losses; market impact on variable annuity guaranteed living benefits net of hedges and related DSIC and DAC amortization; and integration/restructuring charges. After-tax is calculated using the statutory tax rate of 35%. 
 (2) Operating return on equity excluding accumulated other comprehensive income (AOCI) is calculated using the trailing twelve months of earnings excluding the after-tax net realized gains/losses; market impact on variable annuity guaranteed living benefits, net of hedges and related DSIC and DAC amortization; 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%. 
                                                                                                                                             


                                                                                                                               
 Ameriprise Financial, Inc.                                                                                                    
 Consolidated GAAP Results                                                                                                     
                                                                                                                               
 (in millions, unaudited)                                            Quarter Ended December 31,                  % Better/     
                                                                                                                 (Worse)       
                                                                     2012                        2011            
 Revenues                                                                                                                      
 Management and financial advice fees                                $      1,217                $      1,101    11     %      
 Distribution fees                                                          427                         371      15            
 Net investment income                                                      503                         588      (14    )      
 Premiums                                                                   311                         305      2             
 Other revenues                                                             226                         228      (1     )      
 Total revenues                                                             2,684                       2,593    4             
 Banking and deposit interest expense                                       10                          11       9             
 Total net revenues                                                         2,674                       2,582    4             
                                                                                                                               
 Expenses                                                                                                                      
 Distribution expenses                                                      702                         625      (12    )      
 Interest credited to fixed accounts                                        209                         222      6             
 Benefits, claims, losses and settlement expenses                           429                         511      16            
 Amortization of deferred acquisition costs                                 89                          31       NM            
 Interest and debt expense                                                  67                          96       30            
 General and administrative expense                                         760                         771      1             
 Total expenses                                                             2,256                       2,256    -             
 Income from continuing operations before income tax provision              418                         326      28            
 Income tax provision                                                       87                          58       (50    )      
 Income from continuing operations                                          331                         268      24            
 Income from discontinued operations, net of tax                            1                           13       (92    )      
                                                                                                                               
 Net income                                                                 332                         281      18            
 Less: Net income (loss) attributable to noncontrolling interests           (57    )                    45       NM            
                                                                                                                               
 Net income attributable to Ameriprise Financial                     $      389                  $      236      65     %      
                                                                                                                               
 NM Not Meaningful - variance of greater than 100%                                                                             
                                                                                                                               


                                                                                                                             
 Ameriprise Financial, Inc.                                                                                                  
 Consolidated GAAP Results                                                                                                   
                                                                                                                             
 (in millions, unaudited)                                         Year Ended December 31,                      % Better/     
                                                                                                               (Worse)       
                                                                  2012                      2011               
 Revenues                                                                                                                    
 Management and financial advice fees                             $     4,692               $     4,537        3      %      
 Distribution fees                                                      1,616                     1,573        3             
 Net investment income                                                  1,933                     2,046        (6     )      
 Premiums                                                               1,223                     1,220        -             
 Other revenues                                                         795                       863          (8     )      
 Total revenues                                                         10,259                    10,239       -             
 Banking and deposit interest expense                                   42                        47           11            
 Total net revenues                                                     10,217                    10,192       -             
                                                                                                                             
 Expenses                                                                                                                    
 Distribution expenses                                                  2,698                     2,559        (5     )      
 Interest credited to fixed accounts                                    831                       856          3             
 Benefits, claims, losses and settlement expenses                       1,846                     1,557        (19    )      
 Amortization of deferred acquisition costs                             286                       397          28            
 Interest and debt expense                                              276                       317          13            
 General and administrative expense                                     3,042                     3,059        1             
 Total expenses                                                         8,979                     8,745        (3     )      
 Income from continuing operations before income tax provision          1,238                     1,447        (14    )      
 Income tax provision                                                   335                       377          11            
 Income from continuing operations                                      903                       1,070        (16    )      
 Loss from discontinued operations, net of tax                          (2      )                 (60     )    97            
                                                                                                                             
 Net income                                                             901                       1,010        (11    )      
 Less: Net loss attributable to noncontrolling interests                (128    )                 (106    )    (21    )      
                                                                                                                             
 Net income attributable to Ameriprise Financial                  $     1,029               $     1,116        (8     )%     
                                                                                                                             


Ameriprise Financial
Investor Relations:
Alicia A. Charity, 612-671-2080
alicia.a.charity@ampf.com
or
Chad J. Sanner, 612-671-4676
chad.j.sanner@ampf.com
or
Media Relations:
Paul W. Johnson, 612-671-0625
paul.w.johnson@ampf.com

Copyright Business Wire 2013

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