Ameriprise Financial Reports Fourth Quarter 2012 Results

  Ameriprise Financial Reports Fourth Quarter 2012 Results

  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.

Business Wire

MINNEAPOLIS -- January 30, 2013

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

                  Quarter Ended                   Per Diluted Share
(in millions,    December 31,                   Quarter Ended
except per                                        December 31,
share amounts,                          %                              %
unaudited)        2012       2011     Better/   2012       2011    Better/
                                        (Worse)                        (Worse)
Net income from
continuing
operations        $ 388       $ 223     74   %    $ 1.80      $ 0.95   89   %
attributable to
Ameriprise
Financial
Adjustments,
net of tax^(1)
(see
reconciliation     (21   )    85      NM         (0.09 )    0.36   NM
on p. 11)
Operating         $ 367       $ 308     19   %    $ 1.71      $ 1.31   31   %
earnings
                                                                            
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,     2012     2011   2012        2011
unaudited)
Variable annuity model revision             $ 28      $  —   $  0.13      $  —
Tax adjustment from prior periods           $ 16      $  —   $  0.07      $  —
Settlement with a third-party service       $ 10      $  —   $  0.05      $  —
provider
Previously disclosed Auto & Home            $ (13 )   $  —   $  (0.06 )   $  —
Superstorm Sandy losses
                                                                             
^(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/
                                        2012            2011        (Worse)
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/
                                        2012             2011        (Worse)
Retail client assets (billions)         $    353         $   310     14    %
Mutual fund wrap net flows (billions)   $    2.1         $   1.4     53    %
Operating net revenue per branded       $    103         $   93      11    %
advisor (thousands)


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,           Quarter Ended December 31,                  % Better/
unaudited)              2012                  2011                  (Worse)
Asset Management
Net revenues            $    740               $   702               5     %
Expenses                    599                  575               (4    )
Pretax operating        $    141               $   127               11
earnings
                        
Item included in
operating earnings:
CDO liquidation         $    —                 $   11                NM
benefit
                        
                        Quarter Ended December 31,                   % Better/
                        2012                   2011                  (Worse)
Total segment           $    455               $   436               5     %
AUM^(1) (billions)
Columbia Management     $    330               $   326               1     %
AUM
Threadneedle AUM        $    128               $   114               12    %
                                                                           
Total segment net       $    (3.9    )         $   3.8    ^(2)       NM
flows (billions)
Retail net flows        $    (0.0    )         $   (0.2   )          NM
Institutional net       $    (3.3    )         $   5.0    ^(2)       NM
flows
Alternative net         $    (0.6    )         $   (1.0   )          38    %
flows

^(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/
                                      2012             2011         (Worse)
Annuities
Net revenues                          $   636           $  634       —
Expenses                                 465             470       1     %
Pretax operating earnings             $   171           $  164       4
                                                                           
Variable annuity pretax operating     $   129           $  118       9     %
earnings
Fixed annuity pretax operating           42              46        (9    )
earnings
Total pretax operating earnings       $   171           $  164       4
                                                                           
Items included in operating
earnings:
Market impact on DAC and DSIC (mean   $   2             $  16        (88   )%
reversion)
Index annuity reserve adjustment      $   —             $  (8    )   NM
Variable annuity liability model      $   43            $  —         NM
revision

                                      Quarter Ended December 31,     % Better/
                                      2012              2011         (Worse)
Variable annuity ending account       $   68.1          $  62.3      9     %
balances (billions)
Variable annuity net flows            $   (214   )      $  227       NM
(millions)
Fixed annuity ending account          $   13.8          $  14.2      (3    )%
balances (billions)
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/
                                        2012            2011        (Worse)
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        $    20         $   —       NM
Superstorm Sandy losses
                                        
                                        Quarter Ended December 31,   % Better/
                                        2012             2011        (Worse)
Life insurance in force (billions)      $    191         $   191     —
VUL/UL ending account balances          $    9.9         $   9.2     7     %
(billions)
Auto & Home policies in force                756             696     9     %
(thousands)
                                                                           
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/
                                      2012             2011         (Worse)
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         $   15            $   —        NM
service provider
                                                                           
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      2012       2011        2012       2011
amounts, unaudited)
Net income attributable to          $ 389       $ 236       $ 1.81      $ 1.01
Ameriprise Financial
Less: Income from discontinued       1          13         0.01       0.06
operations, net of tax
Net income from continuing
operations attributable to            388         223         1.80        0.95
Ameriprise Financial
Add: Market impact on variable
annuity guaranteed living             30          72          0.14        0.30
benefits, net of tax^(1)
Add: Integration/restructuring        3           14          0.02        0.06
charges, net of tax^(1)
Add: Net realized losses (gains),    (54   )    (1    )    (0.25 )    —
net of tax^(1)
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   2012       2011        2012       2011
amounts, unaudited)
Net income attributable to       $ 1,029     $ 1,116     $ 4.62      $ 4.53
Ameriprise Financial
Less: Loss from discontinued      (2    )    (60   )    (0.01 )    (0.24 )
operations, net of tax
Net income from continuing
operations attributable to         1,031       1,176       4.63        4.77
Ameriprise Financial
Add: Market impact on variable
annuity guaranteed living          173         40          0.77        0.16
benefits, net of tax^(1)
Add: Integration/restructuring     46          62          0.21        0.25
charges, net of tax^(1)
Add: Net realized losses          (5)        (4    )    (0.02 )    (0.01 )
(gains), net of tax^(1)
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     4          —        (4     )    —
charges
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            45        111       265       62
annuity guaranteed living benefits
Less: Integration/restructuring           9        21       67       95
charges
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     $    418            $    443
income tax provision
Less: Pretax loss attributable to                (57    )           —
noncontrolling interests
Income from continuing operations before
income tax provision excluding               $    475            $    443
consolidated investment entities
Income tax provision from continuing         $    87             $    76
operations
                                                                             
Effective tax rate                                20.8   %            17.2   %
Effective tax rate excluding                      18.3   %            17.2   %
noncontrolling interests
                                                                             


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


Ameriprise Financial, Inc.
Reconciliation Table: Effective Tax Rate

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


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             103             100
revenues
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          $     1,029                $    1,116
to Ameriprise Financial
Less: Loss from
discontinued operations,              (2        )              (60      )
net of tax
Net income from
continuing operations
attributable to                        1,031                     1,176
Ameriprise Financial, as
reported
Less: Adjustments ^ (1)               (214      )              (98      )
Operating earnings               $     1,245                $    1,274
                                                                          
Total Ameriprise
Financial, Inc.                  $     9,071                $    9,169
shareholders’ equity
Less: Assets and                       —                         30
liabilities held for sale
Less: Accumulated other
comprehensive income, net             1,001                    701
of tax
Total Ameriprise
Financial, Inc.
shareholders’ equity from              8,070                     8,438
continuing operations
excluding AOCI
Less: Equity impacts
attributable to the                   397                      478
consolidated investment
entities
Operating equity                 $     7,673                $    7,960
                                                                          
Return on equity,                      12.8      %               13.9     %
excluding AOCI
Operating return on
equity, excluding AOCI ^               16.2      %               16.0     %
(2)

^(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/
                                        2012            2011        (Worse)
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                429             511      16
settlement expenses
Amortization of deferred acquisition        89              31       NM
costs
Interest and debt expense                   67              96       30
General and administrative expense         760            771      1
Total expenses                              2,256           2,256    —
Income from continuing operations           418             326      28
before income tax provision
Income tax provision                       87             58       (50   )
Income from continuing operations           331             268      24
Income from discontinued operations,       1              13       (92   )
net of tax
                                                                           
Net income                                  332             281      18
Less: Net income (loss) attributable       (57    )       45       NM
to noncontrolling interests
                                                                           
Net income attributable to Ameriprise   $   389          $  236      65    %
Financial
                                                                           
NM Not Meaningful — variance of greater than 100%



Ameriprise Financial, Inc.
Consolidated GAAP Results

(in millions, unaudited)                Year Ended December 31,    % Better/
                                         2012          2011         (Worse)
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                1,846         1,557      (19   )
settlement expenses
Amortization of deferred acquisition        286           397        28
costs
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           1,238         1,447      (14   )
before income tax provision
Income tax provision                       335          377        11
Income from continuing operations           903           1,070      (16   )
Loss from discontinued operations, net     (2      )    (60    )   97
of tax
                                                                           
Net income                                  901           1,010      (11   )
Less: Net loss attributable to             (128    )    (106   )   (21   )
noncontrolling interests
                                                                           
Net income attributable to Ameriprise    $  1,029       $ 1,116      (8    )%
Financial
                                                                           

Contact:

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
 
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