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2015

Ameriprise Financial
Annual Report

2015 Ameriprise Financial Consolidated Highlights

(in millions, except per share and as noted)
GAAP 2015 2014 2013
Net revenues $12,170 $12,268 $11,199
Net income from continuing operations attributable to Ameriprise Financial $1,562 $1,621 $1,337
Earnings from continuing operations per diluted share attributable to Ameriprise Financial common shareholders $8.48 $8.31 $6.46
Return on equity from continuing operations excluding accumulated other comprehensive income, net of tax 21.4% 21.5% 17.2%
Shareholders' equity $7,127 $8,124 $8,192
Shareholders' equity excluding accumulated other comprehensive income, net of tax $6,964 $7,462 $7,597
Operating 2015 2014 2013
Net revenues $11,734 $11,591 $10,857
Earnings $1,716 $1,662 $1,460
Earnings per diluted share $9.32 $8.52 $7.05
Return on equity excluding accumulated other comprehensive income, net of tax 24.3% 23.0% 19.7%
2015 2014 2013
Assets under management and administration (in billions) $777 $806 $771
Weighted average common shares outstanding — diluted 184.2 195.0 207.1
Cash dividends paid per common share $2.59 $2.26 $2.01
Common stock shares repurchased 13.9 11.8 17.8

This Annual Report to Shareholders contains certain non-GAAP financial measures that management believes best reflect the underlying performance of our operations. Reconciliations of non-GAAP measures to the most directly comparable GAAP measure are on page 16.

Dear fellow shareholders,

Ten years ago, Ameriprise Financial debuted as an independent public company with a new brand and a proud legacy of serving clients' long-term financial needs. From the strength of our reputation to our growth in assets and increasing global reach, Ameriprise has flourished. We are guided by our vision to become the most respected and referred financial services firm, our consistent long-term strategy and the client-centric values that define us.

JAMES M. CRACCHIOLO
CHAIRMAN AND
CHIEF EXECUTIVE OFFICER

Our strength comes from our people — individuals who care deeply about our clients and the company

I frequently hear from employees and advisors about their proudest moments from the past decade. Their comments are consistent: We serve clients the right way and for the long-term, earn trust and confidence, and make our communities better places. The moment raised most often is how we handled the 2008 financial crisis and stood by clients when other firms couldn’t — because we had our own financial plan, made good decisions, managed risk well and invested for the future. This is good perspective when considering how far Ameriprise has come in the last ten years, and as we reflect on our 2015 results.

In this, my annual letter to shareholders, I will update you on our progress and reinforce why I believe we are well-situated to navigate a more challenging operating environment and help our clients realize their financial goals today and in the future.

Operating earnings per diluted share


operating-earnings-per-diluted-share

Operating return on equity, ex. AOCI


operating-return-on-equity-oaci

Delivering solid results

Ameriprise delivered solid business results in 2015, a period characterized by difficult market conditions. Revenue growth was tempered as assets under management and administration declined due to higher equity market volatility, and client activity naturally slowed. Given that we operate in markets around the world, the strong U.S. dollar also impacted the value of non-dollar assets for U.S. reporting purposes. And we continued to manage the persistent pressure of extremely low interest rates. However, we offset these market headwinds because of our consistent and prudent expense management and strong financial foundation, which enable us to continue to invest for growth and return capital to shareholders at a differentiated level.

For the year, operating earnings grew 3% to $1.7 billion and operating earnings per share increased 9% to a record $9.32. In fact, with the strength of our business model and capital management, we're generating one of the highest returns in the industry — operating return on equity, excluding accumulated other comprehensive income grew to a record 24.3%, up 130 basis points from a year ago.

Few financial services companies have the ability to invest strongly in the business while delivering this level of return and maintaining significant capital flexibility. For the fifth consecutive year, we returned more than 100% of our operating earnings to shareholders through increased dividends and ongoing share repurchases.

In 2015, we committed $2.1 billion to dividends and share repurchases, including raising our quarterly dividend 16%. In fact, we’ve increased our dividend ten times since becoming a public company in 2005, all while maintaining a strong and prudent excess capital position.

Though the total shareholder return of Ameriprise Financial common stock declined during the year, over the past decade long-term shareholders have been rewarded with one of the best returns in financial services.

Assets under management and administration
$ in billions


assets-mgmnt-admin-chart

Ameriprise advisor client assets
$ in billions


advisor-client-assets-chart

Key to our ability to grow and preserve shareholder value across market cycles is our steadfast focus on our clients — both retail and institutional. They are at the heart of our diversified business model. Our Advice & Wealth Management business, which is complemented by our Protection and Annuity businesses, serves client needs for a lifetime — from cash and liquidity to growing and preserving wealth and ultimately leaving a legacy. At the same time, our Asset Management business is large and diversified with a broad and high-performing product line to serve individual and institutional investors globally.

Advice & Wealth Management — satisfying clients’ needs, providing strong service and attracting high-quality advisors

Our Advice & Wealth Management business is one of the largest in the United States. The opportunity for Ameriprise is significant given the continued transition of baby boomers to retirement, younger generations accumulating wealth, and the acute need for personal financial advice. Ameriprise is strongly situated to provide more Americans with the financial advice and solutions they need to achieve their financial goals.

We’ve long held the position as the leading financial planning company in the United States. We have more certified financial planners than any other firm and are a leader in retirement planning.

Our actions define our reputation, and I’m pleased that Ameriprise is recognized as a trusted financial services firm. We earned the highest forgiveness rating for investment firms in an industry survey — the third consecutive year that we have earned the top spot.

We know our personal and comprehensive approach to serving clients is ideal for helping people confidently navigate not only a volatile market environment but also each life stage. Our client satisfaction remains very strong, and as we seek to serve more clients, we have an excellent story to tell.

Last fall, we launched our new Be Brilliant.SM brand platform. Our advertising speaks directly to our target market — mass affluent and affluent consumers who value advice and the benefits of a personal relationship with a trusted advisor. It illustrates the everyday moments of brilliance clients can realize by working with the right advisor and the right firm. Ameriprise Financial brand awareness is near an all-time high, and advisors and clients are inspired by our message. We are complementing our broadcast presence with a strong digital presence, and advisors are building on our Be Brilliant. brand platform in their local communities and online to engage prospects and clients at the grass-roots level.

Client assets in fee-based investment advisory accounts
$ in billions


client-assets-fee-based-chart

Operating net revenue per advisor
$ in thousands


operat-net-revenue-per-advisor

A powerful new brand platform:

Be Brilliant

Our Be Brilliant. campaign launched nationally in September with prime-time TV spots, hundreds of thousands of views on YouTube, engaging online ads and relevant content. Our Be Brilliant. brand platform is more than just a tagline — it illustrates the everyday moments of brilliance clients can realize by working with the right advisor and the right firm.

Be Free.

Be Inspired.

Be Curious.

Be There.

The long-term, personal relationships our advisors establish with clients are an important differentiator for us. This is reinforced by our Confident Retirement® approach. It simplifies investing for retirement and helps clients understand actions they can implement, which leads to higher client satisfaction, more referrals and increased advisor productivity.

In 2015, we began to extend our Confident Retirement approach beyond those investing for and living in retirement to younger generations who are focused on building their wealth. These individuals — Generations X and Y — represent more than half of our target market and many are looking to work with an advisor who will meet with them personally. This reinforces the power of the human perspective and interaction when making saving, investing and retirement planning decisions. We believe this is a large opportunity for us, and we are introducing this expanded approach to our entire advisor force in 2016.

Our advisor force is experienced and motivated — a powerful distribution platform in the U.S. More than 9,700 dedicated financial advisors serve clients across the country. We have long maintained excellent advisor satisfaction and retention rates that reflect the leadership, capabilities and support we provide to help them serve clients well and grow their practices.

Celebrating a decade of progress

A decade as Ameriprise Financial, a 120-year legacy of putting clients first

At Ameriprise Financial, we’ve been putting clients first for more than a century. It’s what our business was founded on — meeting clients' needs for a lifetime. We embrace this trust, and in 2005 we began a new chapter in our history by effectively executing one of the largest spin-offs in U.S. history, establishing Ameriprise as an independent, publicly traded company. Our independence unleashed our ability to realize our full potential as a diversified financial services leader. Over the past decade, we grew considerably and expanded our reach consistent with the principles that guide the advice we provide to retail clients — we had our own financial plan, managed risk well, maintained a long-term perspective and invested for the future. We have accomplished a tremendous amount in the past decade; we are proud of our service to our clients and are well-positioned to continue our progress.

View key milestones and learn more about how we have evolved and grown as a leading financial services firm.

timeline chart

$ in billions—

— Assets under management & administration (2005 and 2006 represent assets owned, managed and administered)

Through our investments in technology, advisors can share information with clients more easily and securely, and process business even faster. We continue to see good advisor uptake of the tools we’ve put in place, including eFile delivery, money movement systems and our paperless office.

We also enhanced our digital presence, including incorporating responsive design within ameriprise.com making it easy for clients to access their information from multiple types of devices. And we further strengthened our wealth management platform, including enhancing our research function and adding to our growing managed account product line.

Advisors recognize the strength of the Ameriprise value proposition. In 2015, 347 experienced, highly productive advisors joined the firm — bringing our three-year total to nearly 1,000 advisors — which has added thousands of new client relationships and significant assets to the firm.

The combination of personal client relationships, broad capabilities and strong reputation translated into strong metrics and financial results in our Advice & Wealth Management business. In 2015, client net inflows in fee-based investment advisory accounts were more than $11 billion and overall advisor productivity reached an all-time high of $514,000 in operating net revenue per advisor. Operating revenues and earnings were up nicely, even in a more challenging environment. And as we grow the business and navigate the environment, we continue to manage expenses prudently — operating margin in Advice & Wealth Management increased 60 basis points last year to a competitive 17.1%.

Our Confident Retirement® approach

Our exclusive Confident Retirement approach brings together our capabilities to help address a critical consumer need — planning and preparing for retirement. It links together dreams, goals, recommendations, product solutions and action steps in a way that’s easy for people to understand. Using the approach, clients work with their advisors to address four key retirement needs: covering essentials, ensuring lifestyle, preparing for the unexpected and leaving a legacy.

Retirement Diagram

Annuities and Protection — providing important solutions within our Confident Retirement® approach and strengthening asset persistency

From helping clients maintain their lifestyles in retirement to preparing for the unexpected and leaving a legacy — we help protect assets and retirement income. For shareholders, our Annuity and Protection businesses are solid and stable with strong risk characteristics that generate attractive returns across market cycles and contribute to our ability to retain client assets over time.

In Annuities, we offer our products to Ameriprise clients — people we know well. As more clients move to retirement, the unique benefits annuities can provide — access to lifetime guaranteed income — are central to meeting client needs. Variable annuity sales have been steady with good receptivity to the launch of our SecureSource 4® and SecureSource 4 Plus® riders, as well as ongoing sales of variable annuities without living benefits. This has helped offset some of the pressure from lower equity markets on annuity account balances and the outflows from a closed book of variable annuities sold through third parties. In fixed annuities, the business is performing as expected, but new sales are low given persistently low interest rates.

Protecting our clients’ wealth is an important part of an advice relationship and the value our advisors provide. We’ve built a strong life and health insurance business and are generating steady sales of indexed universal life insurance — a solution that offers clients market upside for their cash value coupled with downside protection, which our clients are finding increasingly attractive given market volatility. We did experience higher life insurance claims in 2015 that increased expenses, but the business remains sound.

In Auto and Home, we continue to earn high policyholder satisfaction and have strong relationships with our affinity partners. We've built a direct business and are focused on providing an excellent experience for policyholders while strengthening the financial performance of the business. Like others in the industry, we experienced higher auto liability expenses during the year. In addition, we also had increased expenses related to claims for prior periods and added to reserves. To address this underperformance, we added resources and are enhancing pricing, underwriting and claims management. While we are seeing some initial improvement, we recognize that it will take time for the benefits to be fully realized. We believe the actions we’re taking are the right ones to get the Auto and Home business back on track.

World Map

Asset Management — generating competitive financial results and executing our strategy to gain market share and profitable flows

With $472 billion in client assets under management, we have an at-scale business with a diversified base of assets and earnings. We've grown through steady investments in the business and strategic acquisitions to establish Ameriprise as a top 30 global asset manager.

As a result of our strategic, former-parent relationships formed as part of our acquisitions, we manage large pools of assets that form a stable base, understanding that over time we will experience a level of outflows consistent with the structure of the books. At the same time, we're growing our higher-fee, third-party businesses as we focus on serving more individual and institutional clients in key markets globally.

In 2015, we formally brought together the capabilities, resources and reach of Columbia Management and Threadneedle Investments and introduced a new brand for the business: Columbia Threadneedle Investments®. This was a logical and important next step in bringing our full capabilities to bear in the marketplace.

It was also a year when active managers outperformed for investors. Our talented equity and fixed income investment teams in the U.S., London and Singapore delivered strong investment performance across style and capitalization. Recently, FE Trustnet, a U.K. trade publication, named Columbia Threadneedle as the top-performing U.K. fund group over the past decade.

Maintaining a broad and high-performing product line is essential to meeting our clients’ needs and growing assets under management. In 2015, we took steps to streamline our retail product lines while also launching new products in the traditional, alternative, global and ESG product categories. This included launching the Columbia Global Unconstrained Fund, our first Asian equity funds for the local market, the Columbia U.S. Social Bond Fund and the Threadneedle Ethical U.K. Equity Fund.

AUM by Asset

AUM by Client

In U.S. retail, we significantly enhanced product, marketing and sales leadership and the initial results are encouraging — in 2015 we increased gross sales and gained market share in key intermediary channels at a time when industry gross sales were down. However, this progress was muted from a flows perspective given continued outflows in the Acorn® Fund. The fund’s short-term performance has improved as a result of the enhancements we’ve made, including adding an experienced lead portfolio manager who came on board at the end of the year.

In European retail, we’re building on our leadership position in the U.K. where we are a top five provider and expanding our presence in key markets on the continent, including Italy. In addition to new product launches, we added key talent to our European and U.K. equities teams. And while the market environment dampened retail flows in the region at mid-year, flows rebounded in the fourth quarter as market conditions improved.

Outside of our core growth markets of the U.S. and U.K./Europe, we’re targeting specific markets where we can serve more individual and institutional clients and gain share — Asia, the Middle East and other regions are attractive long-term opportunities for us as we expand our distribution capabilities and investors’ understanding of Columbia Threadneedle.

This includes third party institutional, where it was a challenging year for the industry given geopolitical and other market-driven pressures. While we were not immune to these pressures, the institutional business remains strong. We are generating good performance in equity, fixed income and alternative strategies, as well as within our multi-asset solutions business. Our pipeline of new sales opportunities is strong. I believe that we have the capabilities, consultant relationships and deep understanding of institutional client needs to move the business to a tier one position.

In terms of financials, the decline in assets under management pressured revenues, but consistent with our expense discipline, we managed expenses well, delivered good earnings and generated a competitive adjusted net pretax operating margin of more than 38%. We have built a strong and profitable asset management business — a long-term growth driver for Ameriprise. We are focused on generating profitable net inflows, and I am confident that we have the right strategy and team in place to execute our long-term growth agenda.

Evolving our business mix — differentiated by our capital strength, flexibility and return

Consistent with our long-term strategy, we are orchestrating a strategic transformation led by our more fee-based, less capital-demanding businesses of Advice & Wealth Management and Asset Management, complemented by the strength and stability of our Protection and Annuity businesses. It's a powerful model anchored by a strong financial foundation. As we've grown, we have invested strongly in the business, returned significant capital to shareholders through share repurchases and dividends and maintained more than $2 billion in excess capital, ample liquidity and a high-quality, diversified investment portfolio.

Percent of pretax operating earnings from our fee-based, less capital-demanding businesses


operating-earnings-chart

Advice & Wealth Management and Asset Management

Annuities & Protection

(Data excludes Corporate & Other segment results)

Dividends/share repurchases
$ in millions


dividends-chart

As we've grown over the past 10 years, we've orchestrated a strategic transformation of Ameriprise to generate more of our operating earnings from our fee-based, less capital-demanding businesses — Advice & Wealth Management and Asset Management. In 2015, these two businesses accounted for 66% of our pretax operating earnings, and we believe as we grow our earnings over time we can increase their contribution to more than 70%.

Maintaining a strong financial foundation is essential to continue this transition. Our capital strength and quality reflects our commitment to our management principles of prudent risk management. And as we seek growth opportunities, Ameriprise has the capital flexibility, as well as management experience, to identify and integrate strategic acquisitions effectively to complement organic growth.

Benefiting from our client-focused culture

At Ameriprise, our values guide our actions. We have leading employee engagement and some of the best employee satisfaction levels across industries. And our advisor satisfaction and retention rates have consistently remained strong.

Our commitment to strengthening communities is central to our culture. Our employees volunteer thousands of hours of their time and our charitable giving rates are among the highest in the industry. We strive to make a difference. Hunger relief is a particular focus, and since 2009 we have provided more than 58 million meals and 196,000 volunteer hours to Feeding America and other hunger-relief organizations. We also proudly support the men and women in the U.S. military. In 2015, we were recognized as a Yellow Ribbon Company by the state of Minnesota, and for the second consecutive year, Ameriprise earned the Military Friendly designation for helping transitioning service members seeking employment.

I am grateful to work with people who care about the good we can do for others, both at work and in our communities.

Our Values:


Client Focused

Integrity Always

Excellence in all we do

Respect for individuals and for the communities in which we live and work

us-map-infographic

us-map-infographic

Looking ahead

Global equity market declines and heightened volatility at the start of 2016 have renewed investor fears and worries about the state of the global economy. We live in an increasingly interconnected world, and that is certainly true with markets, economies and central banks.

People around the world are confronting similar questions about risk and reward. They need well-informed advice and solutions when considering investment strategies to achieve their goals — growing and preserving their hard-earned wealth, educating their children and preparing for retirement. Receiving high-quality, personalized financial advice is essential for all investors. That’s what we do.

Regulators are also considering how investors receive advice, and in the U.S., the Department of Labor will soon introduce a third standard of care for retirement accounts. The industry, including Ameriprise, offered extensive perspective and input to inform the rule.

As of this writing, we don’t know the specifics of the final rule, but we do know that it will affect investors and the industry. We built our business over decades to deliver appropriate advice to clients, and we have long served them under a fiduciary standard while maintaining a strong compliance culture and infrastructure. We have been preparing to manage the changes just as we have with other new regulations; we have the resources, infrastructure and capabilities to ensure strong implementation. Importantly, our leadership team is focused on helping guide advisors and clients through these changes. We believe that our financial advice value proposition — satisfying clients’ needs for the long term — has been and will continue to be highly relevant and sought after.

Whether it is a difficult and volatile market environment, regulatory changes or other headwinds, I am confident that the strength of our client relationships and the flexibility of our business model will continue to differentiate Ameriprise.

In closing, I share in my colleagues’ pride of our first decade as Ameriprise Financial and the more than a century of our legacy that we hold dear. We successfully executed one of the largest spin-offs in U.S. history; navigated the financial crisis better than most — without government support; stood behind and advocated for our clients; delivered appropriate products and solutions to help meet their long-term goals; and invested strongly in the business to deliver long-term value to our shareholders.

We strengthened Ameriprise as a U.S. wealth management leader; established the firm as a global asset manager; and differentiated our insurance and annuity businesses through their risk management and focused distribution.

Ameriprise is one of the strongest financial services firms in the industry with a legacy of performance across market cycles. The stage is set for the future, and I’m energized about the opportunity to realize our full potential.

Thank you

To our more than 20,000 employees and advisors, thank you for your hard work, energy and enthusiasm. We appreciate all you do to serve our clients every day.

To our clients, thank you for entrusting your assets to Ameriprise. We greatly value your business.

To my fellow members of the Ameriprise Financial board of directors, thank you for your counsel and support. We benefit from your perspective.

And finally, to you, our shareholders, thank you for your trust and confidence in Ameriprise. We will continue to do all we can to reward it.

Sincerely,

Jim Cracchiolo signature

James M. Cracchiolo
Chairman and Chief Executive Officer

ameriprise logo

General Information

Executive Offices

Ameriprise Financial Center
707 2nd Avenue South
Minneapolis, MN 55474
612.671.3131

7 World Trade Center
250 Greenwich Street, Suite 3900
New York, NY 10007

Information Available to Shareholders

Copies of our company's Annual Report on Form 10-K, proxy statement, press releases and other documents, as well as information on financial results and products and services, are available through the Ameriprise Financial website at ameriprise.com. Written copies of these materials are available without charge, upon written request to the corporate secretary's office.

Stock Exchange Listing

New York Stock Exchange
Symbol: AMP

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

225 South 6th Street, Suite 1400
Minneapolis, MN 55402

Transfer Agent

Computershare Trust Company, N.A.
P.O. Box 30170
College Station, TX 77842
866.337.4999
(U.S. and Canada only)
781.575.3223 (International)

Email:
web.queries@computershare.com
Website:
computershare.com/ameriprise

Annual Meeting

The 2016 Annual Meeting of Shareholders of Ameriprise Financial will be held at our Minneapolis headquarters at 707 2nd Avenue South, Minneapolis, MN 55474, on Wednesday, April 27, 2016, at 11 a.m. Central time. A written or audio transcript of the meeting will be available upon written request to the corporate secretary’s office. There will be a modest charge to defray production and mailing costs.

Shareholders

As of Feb. 12, 2016, there were 15,429 shareholders of record. Copies of the Ameriprise Financial Corporate Governance Guidelines, as well as the charters of the four standing committees of the Board of Directors and the Ameriprise Financial Company Code of Conduct, are available on the company’s website at ir.ameriprise.com. Our website also provides important information about how and when we grant share-based compensation such as stock options and restricted stock, including the schedule of grant dates for 2016. We provide a copy of our Long-Term Incentive Awards Policy on our website and explain our policy for the approval of grants on a date when the Compensation and Benefits Committee of the Board of Directors or our chairman and chief executive officer is aware of material, nonpublic information about our company or its securities. Copies of these materials are available without charge, upon written request to the corporate secretary’s office.

We filed the Certifications of our chief executive officer and chief financial officer with the Securities and Exchange Commission pursuant to section 302 of the Sarbanes-Oxley Act of 2002 as exhibits 31.1 and 31.2 respectively, to our Annual Report on Form 10-K for the year ended Dec. 31, 2015.

Shareholder and Investor Inquiries

Written shareholder inquiries may be sent to:

Computershare Shareholder Services
P.O. Box 30170
College Station, TX 77842

or to:
Corporate Secretary's Office
1098 Ameriprise Financial Center
Minneapolis, MN 55474

Written inquiries from the investment community should be sent to:

Investor Relations
243 Ameriprise Financial Center
Minneapolis, MN 55474

Trademarks

The following service marks of Ameriprise Financial, Inc. and its affiliates appear in this report:

Acorn®

Ameriprise Financial®

Be Brilliant.SM

Columbia Threadneedle Investments®

Confident Retirement®

SecureSource 4®

SecureSource 4 Plus®

The service mark Acorn is owned by Columbia Acorn Trust.

Executive Leadership Team

James M. Cracchiolo
Chairman and Chief Executive Officer

Walter S. Berman
Executive Vice President and Chief Financial Officer

Campbell Fleming
Chief Executive Officer EMEA and Global Chief Operating Officer
Columbia Threadneedle Investments

Kelli A. Hunter
Executive Vice President, Human Resources

John C. Junek
Executive Vice President and General Counsel

Randy C. Kupper
Executive Vice President and Chief Information Officer

Neal Maglaque
President, Advice & Wealth Management
Business Development and Chief Operating Officer

Deirdre D. McGraw
Executive Vice President, Marketing, Corporate
Communications and Community Relations

Colin Moore
Executive Vice President, Global Chief Investment Officer

Patrick H. O’Connell
Executive Vice President, Ameriprise Advisor Group

Joseph E. Sweeney
President, Advice & Wealth Management
Products and Service Delivery

William F. (Ted) Truscott
Chief Executive Officer, Global Asset Management

William J. (Bill) Williams
Executive Vice President, Ameriprise Franchise Group

John R. Woerner
President, Insurance & Annuities and Chief Strategy Officer

Board of Directors

James M. Cracchiolo
Chairman and
Chief Executive Officer
Ameriprise Financial, Inc.

Dianne Neal Blixt
Former Executive Vice President
and Chief Financial Officer
Reynolds American, Inc.

Amy DiGeso
Former Executive Vice President
Global Human Resources
The Estée Lauder Companies Inc.

Lon R. Greenberg
Chairman Emeritus and Former
Chairman and Chief Executive
Officer, UGI Corporation

Siri S. Marshall
Former Senior Vice President
and General Counsel
General Mills, Inc.

Jeffrey Noddle
Former Chairman
SUPERVALU INC.

H. Jay Sarles
Private Investor
Former Vice Chairman
Bank of America

Robert F. Sharpe, Jr.
Former President
Commercial Foods and
Chief Administrative Officer
ConAgra Foods, Inc.

William H. Turner
Former Dean
Montclair State University
Former Chairman
PNC Bank, NA, New Jersey

NOTE: Messrs. Fleming, O'Connell and Williams are not executive officers of Ameriprise Financial for the purposes of Section 16 of the Securities Exchange Act of 1934, as amended.

Performance Graph

The graph below compares the cumulative five-year total return for shareholders of Ameriprise Financial, Inc. common stock with the cumulative total returns of the S&P 500 Index and the S&P 500 Financials Index. The graph tracks the performance of a $100 investment in our common stock and in each index (with the reinvestment of all dividends) from Dec. 31, 2010 to Dec. 31, 2015.

Comparison of a five-year cumulative total return*

Ameriprise Financial, Inc., the S&P 500 Index and the S&P 500 Financials Index


Performace Chart

Ameriprise Financial, Inc.

S&P 500 Index

S&P 500 Financials Index

*$100 invested on Dec. 31, 2010 in stock or index, including reinvestment of dividends.

Fiscal year ending Dec. 31.

The Standard & Poor's 500 Index (S&P 500® Index), an unmanaged index of common stocks, is frequently used as a general measure of market performance. The Index reflects reinvestment of all distributions and changes in market prices, but excludes brokerage commissions or other fees. The S&P 500 Financials Index measures the performance of financial components of the S&P 500 Index.

Past performance does not guarantee future results. It is not possible to invest directly in an index.

Copyright © 2016 S&P, a division of The McGraw-Hill Companies. All rights reserved.

This report is not a solicitation for any of the products or services mentioned. Investment products, including shares of mutual funds, are not FDIC or otherwise federally insured, are not deposits or obligations, or guaranteed by any financial institution, and involve investment risks, including possible loss of principal and fluctuation in value.

Past performance does not guarantee future results. Actual results may vary materially from our plans, estimates and beliefs. Please review carefully the discussion captioned “Forward-Looking Statements” contained in Part II, Item 7 in our Annual Report on Form 10-K for the year ended Dec. 31, 2015.

The following describes the principal subsidiaries that conduct the financial planning, asset accumulation and income, and protection businesses of Ameriprise Financial, Inc. Columbia Mutual Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC. Threadneedle International Limited is an FCA- and an SEC-registered investment adviser and an affiliate of Columbia Management Investment Advisers, LLC, based in the U.K. RiverSource insurance and annuity products are issued by RiverSource Life Insurance Company and, in New York, by RiverSource Life Insurance Co. of New York, Albany, NY, and distributed by RiverSource Distributors, Inc.

($ in millions) 2015 2014 2013
Total net revenues $12,170 $12,268 $11,199
Less: Revenues attributable to the CIEs 446 651 345
Less: Net realized investment gains 4 37 7
Less: Market impact on indexed universal life benefits 7 (11) (10)
Less: Market impact of hedges on investments (21)
Operating total net revenues $11,734 $11,591 $10,857
($ in millions) 2015
Asset Management operating total net revenues $3,254
Less: Distribution pass through revenues 862
Less: Subadvisory and other pass through revenues 407
Asset Management adjusted operating revenues $1,985
Asset Management pretax operating earnings $761
Less: Operating net investment income 23
Add: Amortization of intangibles 27
Asset Management adjusted operating earnings $765
Asset Management adjusted net pretax operating margin 38.5%

auto and home insurance is underwritten by IDS Property Casualty Insurance Company, or in certain states, Ameriprise Insurance Company. Personal trust services are offered through Ameriprise National Trust Bank. Ameriprise Financial Services, Inc. Member FINRA and SIPC. Investment advisory services and products are made available through Ameriprise Financial Services, Inc., a registered investment adviser.

Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.

Sources: Financial planning leadership: Ameriprise helped pioneer the financial planning process more than 30 years ago. We have more CERTIFIED FINANCIAL PLANNERTM professionals than any other company in the U.S. based on data provided by the CFP Board of Standards, as of Dec. 31, 2015. Trust and forgiveness – temkinratings.com. Top 30 global asset manager – P&I/Towers Watson World 500 – Nov. 2, 2015, data as of year-end 2014. Top 5 provider in U.K. – Investment Association, retail AUM as of Sept. 2015.

($ in millions) 2015 2014 2013 2012 2011
Net income attributable to Ameriprise Financial $1,562 $1,619 $1,334 $1,029 $1,116
Less: Income (loss) from discontinued operations, net of tax (2) (3) (2) (60)
Net income from continuing operations attributable to Ameriprise Financial 1,562 1,621 1,337 1,031 1,176
Less: Adjustments(1) (154) (41) (123) (214) (98)
Operating earnings $1,716 $1,662 $1,460 $1,245 $1,274
Ameriprise Financial shareholders’ equity(2) $7,808 $8,270 $8,582 $9,071 $9,169
Less: Assets and liabilities held for sale(2) 30
Less: Accumulated other comprehensive income (loss), net of tax "AOCI"(2) 516 734 821 1,001 701
Ameriprise Financial shareholders’ equity from continuing operations excluding AOCI(2) 7.292 7,536 7,761 8,070 8,348
Less: Equity impacts attributable to the consolidated investment entities(2) 216 311 333 397 478
Operating equity(2) $7,076 $7,225 $7,428 $7,673 $7,960
Return on equity from continuing operations, excluding AOCI 21.40% 21.50% 17.20% 12.80% 13.90%
Operating return on equity, excluding AOCI(3) 24.30% 23.00% 19.70% 16.20% 16.00%

(1) Adjustments reflect the trailing twelve months’ sum of after-tax net realized investment gains/losses, net of deferred sales inducement costs (“DSIC”) and deferred acquisition costs (“DAC’) amortization, unearned revenue amortization and the reinsurance accrual; the market impact on variable annuity guaranteed benefits, net of hedges and the related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; and integration/restructuring charges. After-tax is calculated using the statutory tax rate of 35%.

(2) Amounts represent the five-point average of quarter-end balances.

(3) Operating return on equity excluding accumulated other comprehensive income/loss (AOCI) is calculated using the trailing twelve months of earnings excluding the after-tax net realized investment gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; 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%.

Per Diluted Share
($ in millions, except per share amounts) 2015 2014 2013 2012 2011 2015 2014 2013 2012 2011
Net income attributable to Ameriprise Financial $1,562 $1,619 $1,334 $1,029 $1,116 $8.48 $8.30 $6.44 $4.62 $4.53
Less: Income (loss) from discontinued operations, net of tax (2) (3) (2) (60) (0.01) (0.02) (0.01) (0.24)
Net income from continuing operations attributable to Ameriprise Financial 1,562 1,621 1,337 1,031 1,176 8.48 8 6 4.63 4.77
Less: Net realized gains, net of tax(1) 3 24 5 5 4 0.02 0.12 0.02 0.02 0.01
Add: Integration/restructuring charges, net of tax(1) 3 9 46 62 0.02 0.04 0.21 0.25
Add: Market impact on variable annuity guaranteed benefits, net of tax(1) 139 61 111 173 40 0.75 0.31 0.53 0.77 0.16
Add: Market impact on indexed universal life benefits, net of tax(1) 1 4 8 0.01 0.02 0.04
Add: Market impact of hedges on investments, net of tax(1) 14 0.08
Operating earnings $1,716 $1,662 $1,460 $1,245 $1,274 $9.32 $8.52 $7.05 $5.59 $5.17
(1) Calculated using the statutory tax rate of 35%.