MINNEAPOLIS--(BUSINESS WIRE)--
Ameriprise Financial, Inc. (NYSE: AMP) today reported net income of $129
million for the first quarter ended March 31, 2009. The results
represent a 32 percent decline from net income of $191 million for the
first quarter ended March 31, 2008.
Earnings per common share for the first quarter of 2009 were $0.58,
compared to $0.82 for the first quarter of 2008. First quarter 2009
results reflect the significant decline in equity markets and the lower
short-term interest rate environment. These two factors negatively
impacted year-over-year results by approximately $0.62 per share.
The 40 percent year-over-year decline in the S&P 500 Index contributed
to a 14 percent decline in net revenues to $1.7 billion in the first
quarter of 2009, compared to $2.0 billion in the first quarter of 2008.
Management and financial advice fees and distribution fees were impacted
by lower equity markets and clients' increased preference for short-term
and fixed income investment products.
Management continues to reduce expenses in light of market-driven
revenue declines. General and administrative expenses for the first
quarter of 2009 were down 1 percent from the prior year, and declined 15
percent excluding integration costs and additional expenses from
acquisitions closed in the fourth quarter of 2008.
As of March 31,2009, the company's estimated excess capital
position increased to more than $1 billion. The company continues to
maintain strong balance sheet fundamentals, including a large liquidity
position and high-quality invested asset portfolio. The company's net
unrealized investment loss position declined from year-end 2008 to $1.82
billion, and net realized investment gains were immaterial in the
quarter.
"Despite the continued challenges presented by the market and economic
conditions, our results demonstrate that the company has been positioned
to manage through the current environment," said Jim Cracchiolo,
chairman and chief executive officer. "We continue to manage
aggressively for weak conditions over the short term. We are seeing
benefits from our ongoing expense initiatives, and we continue to
maintain solid balance sheet fundamentals and strong capital positions.
At the same time, we continue to invest in our central value
proposition--deep, enduring client-advisor relationships built around
comprehensive financial planning. We are confident our strong financial
foundation and diverse, resilient franchise will provide significant
leverage as market conditions improve."
First Quarter 2009 Summary
Management believes the exclusion of after-tax impacts due to realized
net investment gains (losses), non-recurring integration costs and
market impacts on deferred acquisition costs (DAC), and variable annuity
benefits best reflect the underlying performance of the business. For
the non-GAAP presentation of after-tax amounts, the tax effect is
calculated using the statutory tax rate of 35 percent.
Ameriprise Financial, Inc.
First Quarter Summary
Per Diluted Share
(in millions, unaudited) 2009 2008 % %
Change 2009 2008 Change
Net income attributable $ 129 $ 191 (32 )% $ 0.58 $ 0.82 (29 )%
to Ameriprise Financial
Add: After-tax impacts:
(1)
Investment (gains)/losses (2 ) 16 NM (0.01 ) 0.07 NM
Integration charges 12 -- NM 0.05 -- NM
Other market impacts:
DAC and DSIC charges 30 18 67 0.14 0.08 75
Variable annuities, net (35 ) 5 NM (0.16 ) 0.02 NM
of DAC and DSIC
Core operating earnings, $ 134 $ 230 (42 )% $ 0.60 $ 0.99 (39 )%
after-tax
Weighted average common
shares outstanding:
Basic 222.3 228.4
Diluted 223.5 231.5
NM Not Meaningful
(1) For this non-GAAP presentation, after-tax is calculated using the statutory
tax rate of 35%.
Following are items excluded from core operating earnings to assist in
reconciling with reported results. Each impact is presented after tax.
-- $2 million in realized net investment gains, comprised of $33 million in
realized investment gains, partially offset by $31 million for the
credit-related component of other-than-temporary impairments.
-- $12 million in integration charges related to the company's acquisitions
in the fourth quarter of 2008.
-- $30 million in increased amortization of deferred acquisition costs and
deferred sales inducement costs (DSIC) from lower period-ending account
values.
-- $35 million benefit related to variable annuities, consisting of:
o a $55 million benefit from hedged variable annuity living benefit
guarantees, partially offset by $20 million in unhedged variable
annuity benefit expenses.
Core operating earnings for the first quarter of 2009 included a $33
million after-tax gain on the repurchase of junior subordinated notes,
partially offset by $12 million in operating losses from acquisitions
that closed in the fourth quarter of 2008. Market conditions both drove
higher than anticipated acquisition costs and provided the opportunity
to repurchase debt.
In addition to the items listed above, core operating earnings and net
income in the first quarter of 2009 reflect an approximately $94
million, or $0.42 per share, year-over-year decline from the equity
market's impact on asset levels and fee revenue, and an approximately
$46 million, or $0.20 per share, year-over-year decline in investment
income as a result of the short-term interest rate environment and
higher liquidity levels. Results were also negatively impacted by
market-related changes in client behavior.
Liquidity and Balance Sheet as of March 31, 2009
Management's long-standing emphasis on risk-return decision making and
prudent risk management has positioned the company well. While financial
markets remained challenging during the quarter, management further
enhanced the company's strong balance sheet fundamentals.
Substantial liquidity
-- Cash and cash equivalents were $5.8 billion, with $0.5 billion at the
holding company level. Free cash remained at $4 billion, even as
investments increased by $3.2 billion from the year-end 2008 balance.
-- The company joined the Federal Home Loan Bank and has access to more
than $10 billion in liquidity through the pledge of mortgage-related
assets.
-- The company has no debt maturities until November 15, 2010, maintains
backup lines of credit at parent, subsidiary and mutual fund levels, and
has no reliance on commercial paper, bank lines or other short-term
institutional funding for liquidity.
Conservative capital management
-- The company's excess capital position was more than $1 billion.
-- The company will continue to use enterprise risk management capabilities
and product hedging to anticipate and mitigate risk. The variable
annuity hedging program continues to perform well during a protracted
period of high volatility.
-- The company's adoption of FASB Staff Position No. FAS 115-2 and FAS
124-2, which provided new guidance for recognition and presentation of
other-than-temporary impairments, increased retained earnings by
approximately $131 million to $4.8 billion for non-credit related
other-than-temporary impairments that were realized prior to January 1,
2009, and decreased accumulated other comprehensive income by the same
amount. The net effect of the adoption had no impact on total Ameriprise
Financial shareholders' equity.
High quality investment portfolio
-- The company's $26 billion Available-for-Sale portfolio is both
well-diversified and high-quality.
-- The net unrealized loss position declined to $1.82 billion from $1.84
billion at year-end 2008.
-- The company's total investment portfolio, including cash and cash
equivalents, increased to $37 billion from $34 billion at year-end 2008,
and remains well-positioned. Detailed information about the portfolio is
available online at ir.ameriprise.com.
Conservative capital ratios
-- The debt-to-total capital ratio was 23.1 percent.
-- The debt-to-total capital ratio excluding non-recourse debt and with 75
percent equity credit for hybrid securities was 19.3 percent.
First Quarter 2009 Highlights
-- The company's client base remained stable, with continued strong
retention of 94 percent.
-- Total advisors increased 7 percent to 12,466, compared to the first
quarter of 2008, reflecting acquisitions in the prior quarter as well as
continued strong advisor retention rates.
-- The company completed a strong quarter for experienced advisor
recruitment, with approximately 200 experienced advisors joining the
firm's branded advisor channels in the first quarter of 2009.
-- Owned, managed and administered assets were $354 billion as of March 31,
2009, down 21 percent compared to March 31, 2008, primarily due to the
40 percent decline in the S&P 500.
o The company generated retail net inflows in the quarter, including
$1.5 billion in fixed annuities, $1.3 billion in wrap accounts and
$0.3 billion in variable annuities.
o Total asset management net outflows declined substantially to $0.3
billion in the quarter, compared to net outflows of $5.2 billion in
the first quarter of 2008 and net outflows of $8.7 billion for the
fourth quarter of 2008.
-- Threadneedle formed a strategic partnership with Standard Chartered Bank
to acquire the bank's World Express investment fund business, with $2.7
billion in assets under management, as of December 31, 2008. Pending
regulatory approval, the transaction provides Threadneedle with an
established Luxembourg-based fund platform, which complements
Threadneedle's existing range of funds.
-- Ameriprise Auto & Home premiums increased 5 percent from the prior year,
primarily due to growth in policy counts.
-- The company continued to achieve re-engineering savings in the quarter.
The company also took additional steps to generate re-engineering
savings and now expects to achieve more than $350 million in savings in
2009, an increase from its previous full-year 2009 projection.
Management expects the majority of the full-year savings will be
realized in the second half of 2009 and intends to commit approximately
two-thirds to the bottom line while reinvesting the remainder in growth
initiatives.
Ameriprise Financial, Inc.
Consolidated Income Statements
Quarter Ended March 31,
(in millions, unaudited) % Change
2009 2008
Revenues
Management and financial advice fees $ 554 $ 791 (30 )%
Distribution fees 311 433 (28 )
Net investment income 420 401 5
Premiums 266 256 4
Other revenues 209 157 33
Total revenues 1,760 2,038 (14 )
Banking and deposit interest expense 42 47 (11 )
Total net revenues 1,718 1,991 (14 )
Expenses
Distribution expenses 383 532 (28 )
Interest credited to fixed accounts 205 195 5
Benefits, claims, losses and settlement 100 304 (67 )
expenses
Amortization of deferred acquisition costs 286 154 86
Interest and debt expense 26 26 --
General and administrative expense 585 590 (1 )
Total expenses 1,585 1,801 (12 )
Pretax income 133 190 (30 )
Income tax provision 18 4 NM
Net income 115 186 (38 )
Less: Net loss attributable to (14 ) (5 ) NM
noncontrolling interest
Net income attributable to Ameriprise $ 129 $ 191 (32 )%
Financial
NM Not Meaningful
First Quarter 2009 Consolidated Results
The company reported net income of $129 million for the first quarter of
2009, a 32 percent decline from net income of $191 million for the first
quarter of 2008. Market-driven impacts to revenues and client behavior
were partially offset by expense reductions.
Total net revenues declined 14 percent, or $273 million, to $1.7
billion, driven by lower management and financial advice fees and
distribution fees, primarily due to the decline in equity markets and
clients' increased preference for short-term and fixed income investment
products. In addition, net revenues were impacted by the lower
short-term interest rate environment.
Management and financial advice fees declined 30 percent, or $237
million, to $554 million, primarily due to lower equity markets, as well
as the negative impact of foreign currency translation.
Distribution fees declined 28 percent, or $122 million, to $311 million,
primarily due to changes in client behavior and lower asset levels.
Clients' continued preference for cash and deposit products, which do
not generate distribution fees, resulted in slowing sales and flows for
other products.
Net investment income increased 5 percent, or $19 million, to $420
million, primarily due to $3 million in net realized investment gains,
compared to $24 million in net realized investment losses in the first
quarter of 2008. The benefit of higher invested asset levels was more
than offset by the impact of lower short-term interest rates.
Premiums increased 4 percent, or $10 million, to $266 million, primarily
due to growth in Auto & Home premiums compared to the prior year.
Other revenues increased 33 percent, or $52 million, to $209 million,
primarily due to a $50 million gain on the repurchase of junior
subordinated notes.
Banking and deposit interest expense decreased 11 percent, or $5
million, to $42 million, primarily due to lower crediting rates on
certificates, partially offset by higher certificate balances.
Expenses
Consolidated expenses declined 12 percent, or $216 million, to $1.6
billion, reflecting lower business volumes and continued strong expense
controls. In addition, the company recorded lower expenses from hedged
variable annuity living benefits due to a widening of the credit spread
assumed in discounting liabilities.
Distribution expenses declined 28 percent, or $149 million, to $383
million, primarily due to decreases in advisor compensation reflecting a
shift in client behavior and lower asset levels, which were both
impacted by market declines.
Interest credited to fixed accounts increased 5 percent, or $10 million,
reflecting higher annuity fixed account balances and higher average
rates paid to clients compared to the prior year.
Benefits, claims, losses and settlement expenses declined 67 percent, or
$204 million, to $100 million. Benefits associated with variable annuity
guarantees represented a net gain of $182 million in the current
quarter, compared to a net cost of $24 million in the first quarter of
2008. This result was largely attributable to the impact of credit
spread widening on SFAS 157 liability values. This lower benefit expense
was substantially offset by a related increase in DAC amortization.
Amortization of DAC increased 86 percent, or $132 million, to $286
million. The year-over-year increase included $160 million related to
variable annuity guarantees. In addition, the impact of equity market
depreciation on ending account values increased amortization by $40
million, compared to $24 million in the first quarter of 2008. These
increases were partially offset by a decrease in variable annuity
amortization driven by lower year-over-year account values and
associated asset fees.
General and administrative expense declined 1 percent, or $5 million, to
$585 million. Excluding $85 million in integration costs and ongoing
expenses from acquisitions closed in the fourth quarter of 2008, general
and administrative expense declined 15 percent. This decline reflected
expense controls and lower performance-driven compensation-related
expenses.
Taxes
The effective tax rate on net income attributable to Ameriprise
Financial was 13.3 percent for the quarter, compared to 2.0 percent for
the first quarter of 2008. The effective tax rate for the first quarter
of 2008 included certain exceptional tax adjustments.
Ameriprise Financial, Inc.
Segment Results
Quarter Ended March 31,
(in millions, unaudited) % Change
2009 2008
Pretax income (loss) excluding net loss
attributable to noncontrolling interest
Certificates and Banking $ (5 ) $ (5 ) --
Wealth Management and Distribution (51 ) 69 NM
Advice & Wealth Management (56 ) 64 NM
Asset Management (8 ) 18 NM
Annuities 124 42 NM
Protection 111 102 9 %
Corporate & Other (24 ) (31 ) 23
Pretax income excluding net loss 147 195 (25 )
attributable to noncontrolling interest
Income tax provision 18 4 NM
Net income attributable to Ameriprise $ 129 $ 191 (32 )%
Financial
NM Not Meaningful
First Quarter 2009 Segment Financial Highlights
Advice & Wealth Management reported a pretax loss of $56
million for the quarter, compared to pretax income of $64 million for
the first quarter of 2008. First quarter 2009 results reflect the
market-driven impact to assets, cash spreads and client behavior, as
well as a current period loss related to the acquisition of H&R Block
Financial Advisors. The segment's results also include $15 million in
realized net investment losses in the quarter.
Asset Management reported a pretax loss of $8 million for the
quarter, compared to pretax income of $18 million for the first quarter
of 2008. The decline was driven by market depreciation on assets,
negative foreign currency translation and net outflows. Domestic net
inflows in the quarter reflect improvement in retail net outflows and
strong institutional net inflows. International net outflows include net
inflows in both the retail and institutional higher margin businesses,
offset by net outflows in the lower margin Zurich-related assets. The
segment's general and administrative expenses remained well controlled,
declining 16 percent from a year ago.
Annuities reported pretax income of $124 million for the quarter,
compared to pretax income of $42 million for the first quarter of 2008.
Core operating earnings for the segment, which exclude market-driven
impacts to variable annuity benefits expense and DAC amortization, were
$97 million, compared to $94 million in the prior year. Clients' lower
risk tolerances and preference for guaranteed returns reduced variable
annuity net inflows and increased fixed annuity net inflows.
Protection reported pretax income of $111 million, compared to
$102 million for the first quarter of 2008. The increase was primarily
driven by capital gains and Auto & Home business growth. Overall, life
insurance cash sales declined from a year ago, driven by lower variable
universal life sales, partially offset by growth in universal life sales.
Corporate & Other reported a pretax loss of $24 million,
compared to a pretax loss of $31 million for the first quarter of 2008.
Segment results benefited from a $50 million gain from the repurchase of
junior subordinated notes, partially offset by a $21 million net
investment loss.
Dividend
The Ameriprise Financial board of directors declared a quarterly cash
dividend of $0.17 per common share payable on May 18, 2009 to
shareholders of record at the close of business on May 4, 2009.
Ameriprise Financial, Inc. is a diversified financial services company
serving the comprehensive financial planning needs of the mass affluent
and affluent. For more information, visit ameriprise.com.
RiverSource mutual funds are distributed by RiverSource Distributors,
Inc. and RiverSource Fund Distributors, Inc., Members FINRA and managed
by RiverSource Investments, LLC. For complete mutual fund ranking data
and other important disclosures please refer to Exhibit A "RiverSource
Mutual Fund Performance and Lipper Ranking" in the First Quarter 2009
Statistical Supplement available at ir.ameriprise.com.
The Threadneedle group of companies constitutes the Ameriprise Financial
international investment platform. The group consists of wholly owned
subsidiaries of Ameriprise Financial, Inc. and provides services
independent from Ameriprise Financial Services, Inc., including
Ameriprise Financial Services' broker-dealer business.
Ameriprise Certificates are issued by Ameriprise Certificate Company and
distributed by Ameriprise Financial Services, Inc. Member FINRA.
Ameriprise Financial Services, Inc. offers financial planning services,
investments, insurance and annuity products. 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.
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. The
company has made various forward-looking statements in this report.
Examples of such forward-looking statements include:
-- the statements of belief in this news release that the company expects
continued weak market conditions in the short term;
-- the statement of belief in this news release that the company's current
condition will provide advantages as market conditions improve;
-- the statement of belief in this news release that the company will
generate over $350 million of expense savings in 2009, with the majority
of full-year savings to be realized in the second half of 2009;
-- the statement of current intentions in this news release to allocate
specified proportions of any realized expense savings to either net
income or to reinvestment in growth initiatives;
-- statements of the company's plans, intentions, expectations, objectives
or goals, including those relating to asset flows, mass affluent and
affluent client acquisition strategy, client retention, financial
advisor retention, recruiting and enrollments, general and
administrative costs, consolidated tax rate; and excess capital
position;
-- 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" 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:
-- changes in the valuations, liquidity and volatility in the interest
rate, credit default, equity market, and foreign exchange environments;
-- 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;
-- investment management performance and consumer acceptance of the
company's products;
-- effects of competition in the financial services industry and changes in
product distribution mix and distribution channels;
-- 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;
-- risks of default 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 DAC and DSIC or market volatility underlying our valuation and
hedging of guaranteed living benefit annuity riders;
-- 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 realize the financial, operating and business
fundamental benefits or to obtain regulatory approvals regarding
integration we plan for the acquisitions we have completed;
-- the ability and timing to realize savings and other benefits from
reengineering and tax planning;
-- changes in the capital markets and competitive environments induced or
resulting from the partial or total ownership or other support by
central governments of certain financial services firms or financial
assets; and
-- general economic and political factors, including consumer confidence in
the economy, 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 included as Part 1, Item 1A of and elsewhere
in our Annual Report on Form 10-K for year-end 2008 at ir.ameriprise.com/phoenix.zhtml?c=191716&p=irol-forwardLookingStatement.
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 Quarterly Report on Form 10-Q for
the quarter ended March 31, 2009. For information about Ameriprise
Financial entities, please refer to the First Quarter 2009 Statistical
Supplement available at ir.ameriprise.com
and the tables that follow in this news release.
Reconciliation Tables
Ameriprise Financial, Inc.
Reconciliation Table: GAAP Income Statement to Core Operating Earnings
Quarter Ended March 31, 2009 Quarter Ended March 31, 2008
(in millions,
unaudited) GAAP Core GAAP Core
Earnings Adjustments Operating Earnings Adjustments Operating
Earnings Earnings
Revenues
Management and
financial $ 554 $ -- $ 554 $ 791 $ -- $ 791
advice fees
Distribution 311 -- 311 433 -- 433
fees
Net investment 420 (3 ) 417 401 24 (1) 425
income (1)
Premiums 266 -- 266 256 -- 256
Other revenues 209 -- 209 157 -- 157
Total revenues 1,760 (3 ) 1,757 2,038 24 2,062
Banking and
deposit 42 -- 42 47 -- 47
interest
expense
Total net 1,718 (3 ) 1,715 1,991 24 2,015
revenues
Expenses
Distribution 383 -- 383 532 -- 532
expenses
Interest
credited to 205 -- 205 195 -- 195
fixed accounts
Benefits,
claims, losses 100 194 (2) 294 304 (10 ) 294
and settlement (2)
expenses
Amortization
of deferred 286 (186 ) 100 154 (24 ) 130
acquisition (3) (3)
costs
Interest and 26 -- 26 26 -- 26
debt expense
General and )
administrative 585 (19 (4) 566 590 -- 590
expense
Total expenses 1,585 (11 ) 1,574 1,801 (34 ) 1,767
Pretax income 133 8 141 190 58 248
Income tax 18 3 (5) 21 4 19 (5) 23
provision
Net income 115 5 120 186 39 225
Less: Net loss
attributable
to (14 ) -- (14 ) (5 ) -- (5 )
noncontrolling
interest
Net income
attributable $ 129 $ 5 $ 134 $ 191 $ 39 $ 230
to Ameriprise
Financial
(1) Includes net realized gains and losses on Available-for-Sale securities and
other securities.
Includes an increase in GMDB and other unhedged variable annuity guaranteed
(2) benefit costs, an increase in DSIC amortization from lower period ending
account values and the impact of variable annuity living benefit riders,
net of hedges and DSIC.
Includes an increase in DAC amortization from lower period ending account
(3) values and the DAC effect of variable annuity living benefit riders, net of
hedges.
(4) Includes integration charges.
(5) Reflects tax at the statutory rate of 35%.
Ameriprise Financial, Inc.
Reconciliation Table: GAAP Pretax Segment Income to Core Operating Earnings
Quarter Ended March 31, 2009
(in millions, unaudited) GAAP Core
Earnings Adjustments Operating
Earnings
Pretax income (loss) excluding net loss
attributable to noncontrolling interest
Certificates and Banking $ (5 ) $ 15 $ 10
Wealth Management and Distribution (51 ) 12 (39 )
Advice & Wealth Management (56 ) 27 (29 )
Asset Management (8 ) 10 2
Annuities 124 (27 ) 97
Protection 111 (2 ) 109
Corporate & Other (24 ) -- (24 )
Pretax income excluding net loss 147 8 155
attributable to noncontrolling interest
Income tax provision 18 3 21
Net income attributable to Ameriprise $ 129 $ 5 $ 134
Financial
Ameriprise Financial, Inc.
Reconciliation Table: GAAP Pretax Segment Income to Core Operating Earnings
Quarter Ended March 31, 2008
(in millions, unaudited) GAAP Core
Earnings Adjustments Operating
Earnings
Pretax income (loss) excluding net loss
attributable to noncontrolling interest
Certificates and Banking $ (5 ) $ -- $ (5 )
Wealth Management and Distribution 69 -- 69
Advice & Wealth Management 64 -- 64
Asset Management 18 -- 18
Annuities 42 52 94
Protection 102 5 107
Corporate & Other (31 ) 1 (30 )
Pretax income excluding net loss 195 58 253
attributable to noncontrolling interest
Income tax provision 4 19 23
Net income attributable to Ameriprise $ 191 $ 39 $ 230
Financial
Ameriprise Financial, Inc.
Reconciliation Table: Debt to Total Capital
March 31, 2009
(in Debt Less Impact of 75% Debt Less
millions, GAAP Non-recourse Non-recourse Equity Non-recourse
unaudited) Measure Debt Debt Credit(1) with Equity
Credit(1)
Debt $ 1,922 $ 78 $ 1,844 $ 258 $ 1,586
Total $ 8,306 $ 78 $ 8,228 $ 8,228
Capital
Debt to
Total 23.1 % 22.4 % 19.3 %
Capital
(1) The company's junior subordinated notes receive an equity credit of at
least 75% by the majority of the rating agencies.
Source: Ameriprise Financial
Contact: Ameriprise Financial
Investor Relations:
Laura Gagnon, 612-671-2080
laura.c.gagnon@ampf.com
or
Media Relations:
Paul Johnson, 612-671-0625
paul.w.johnson@ampf.com
or
Benjamin Pratt, 612-678-5881
benjamin.j.pratt@ampf.com