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AMP · AMERIPRISE FINANCIAL INC

22 filings

10-K

AMP 10-K Annual Reports

AMERIPRISE FINANCIAL INC - 22 annual reports

Filing record · 2016–202610-K1210-Q328-K88

2025-A
AMERIPRISE FINANCIAL INC Annual Report (Amendment), Year Ended Dec 31, 2025
Ameriprise Financial, Inc.'s fiscal year 2025 demonstrated robust financial performance, with total revenues increasing to $18.48 billion, up from $17.26 billion in 2024. This growth was primarily driven by increases in management and financial advice fees, alongside strong performance in net investment income. Net income also saw a healthy rise to $3.56 billion, translating to diluted earnings per share of $36.28. The company maintained a strong capital position, with total equity reaching $6.55 billion. Key financial highlights include solid growth in Advice & Wealth Management, driven by advisory and financial planning fees. The Asset Management segment also showed resilience, with asset management fees contributing significantly. The Retirement & Protection Solutions segment continued to be a substantial contributor to overall revenue. The company's effective tax rate remained stable, and it maintained strong regulatory capital ratios across its various subsidiaries, indicating a sound financial foundation and effective risk management.
Mar 12, 2026
2025
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2025
Ameriprise Financial, Inc. (AMP) reported a solid financial performance for the fiscal year ended December 31, 2025, with total net revenues increasing by 7% to $18.48 billion, driven by strong growth in management and financial advice fees, up 10% year-over-year. The company's Advice & Wealth Management segment, its primary growth engine, saw a 13% increase in total client assets, reaching $1.2 trillion, supported by market appreciation and net inflows. The Asset Management segment also experienced growth, with total managed assets increasing by 5% to $678.1 billion, despite net outflows. The Retirement & Protection Solutions segment demonstrated robust adjusted operating earnings growth of 17%, benefiting from unlocking impacts and higher investment income. Ameriprise Financial demonstrated effective capital management, with total equity growing to $6.5 billion. The company repurchased approximately 5.5 million shares of common stock during 2025 for $2.8 billion under its authorized repurchase program. Looking ahead, the company is focused on its integrated model to drive growth and consistency across market cycles, with strategic initiatives aimed at enhancing client experience and advisor productivity. The company's diversified business model, strong advisor network, and focus on holistic financial advice position it well to navigate evolving market conditions.
Feb 19, 2026
2024
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2024
Ameriprise Financial, Inc. reported a strong financial performance for the fiscal year ending December 31, 2024, with pretax income increasing by 32% compared to the prior year. This growth was driven by robust net revenues, particularly from management and financial advice fees, which rose by 14% due to market appreciation and consistent client net inflows in the Advice & Wealth Management segment. The company's Asset Management segment also saw an increase in pretax adjusted operating earnings, driven by market appreciation and performance fees, despite facing net outflows. The company's financial health is further underscored by its significant assets under management, administration, and advisement, which grew to $1.5 trillion as of December 31, 2024. Ameriprise Financial continues to manage its capital effectively, returning value to shareholders through dividends and share repurchases. The company also maintains a strong liquidity position and robust capital levels, well in excess of regulatory requirements.
Feb 20, 2025
2023
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2023
Ameriprise Financial, Inc. reported solid performance in its 2023 10-K filing. The company experienced significant growth in Assets Under Management and Administration (AUMA), reaching $1.4 trillion, a 15% increase year-over-year, primarily driven by market appreciation and net inflows in its Wealth Management segment. The company's adjusted operating earnings and adjusted operating return on equity demonstrate strong profitability. Despite a challenging economic environment with rising interest rates and market volatility, Ameriprise's diversified business model, strong advisor network, and focus on client relationships have enabled it to navigate these conditions effectively. The company continues to execute its strategic growth initiatives, with a particular emphasis on its Advice & Wealth Management segment, which showed a substantial 30% increase in adjusted operating earnings. The Asset Management segment saw a decrease in adjusted operating earnings due to net outflows, while Retirement & Protection Solutions also experienced a decline in earnings, largely influenced by market impacts on variable annuity benefits. The company's capital position remains robust, with available capital for capital adequacy well above regulatory requirements, supported by consistent dividend payments to shareholders and ongoing share repurchase programs.
Feb 22, 2024
2022
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2022
Ameriprise Financial, Inc. (AMP) reported strong results in its 2022 10-K filing, driven by its Advice & Wealth Management segment, which saw a 26% increase in adjusted operating earnings. Despite a challenging market environment, the company maintained a robust financial position, with assets under management and administration totaling $1.2 trillion as of December 31, 2022. The company continues to focus on its strategy of shifting its business mix towards lower-capital, fee-based businesses. The company demonstrated resilience in its financial performance, with total net revenues increasing by 6% to $14.27 billion. While net investment income saw a decline, this was offset by growth in distribution fees and other revenues. Ameriprise Financial also remains committed to shareholder returns, announcing a quarterly dividend and continuing its share repurchase program. The company's diversified business model and strong advisor network position it well for continued growth and stability in the evolving financial services landscape.
Feb 23, 2023
2021
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2021
Ameriprise Financial, Inc. (AMP) reported robust financial performance for the fiscal year ended December 31, 2021. The company experienced significant growth across its key segments, particularly in Advice & Wealth Management and Asset Management, driven by strong net inflows, market appreciation, and strategic acquisitions, including the notable purchase of BMO Global Asset Management (EMEA). Total assets under management and administration reached $1.4 trillion, a 29% increase year-over-year, reflecting successful growth initiatives and positive market conditions. Profitability saw a substantial increase, with net income rising 80% to $2.76 billion, translating to diluted earnings per share of $23.00. This performance was bolstered by a favorable $521 million impact from a block transfer reinsurance transaction and improved market-related assumptions. The company also demonstrated a strong commitment to shareholder returns through consistent dividend payments and a substantial share repurchase program. Looking ahead, Ameriprise is focused on its strategic shift towards lower capital, fee-based businesses and managing evolving regulatory landscapes.
Feb 25, 2022
2020
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2020
In 2020, Ameriprise Financial, Inc. demonstrated resilience amidst the COVID-19 pandemic, with total net revenues of $11.9 billion, a decrease of 8% from the prior year, primarily due to lower interest rates impacting net investment income and distribution fees. Despite the challenging economic environment, the company saw growth in its Advice & Wealth Management segment's net revenues, driven by higher wrap account net inflows and market appreciation. Net income for the year was $1.53 billion, a 19% decrease from 2019, impacted by significant unlocking and Long-Term Care (LTC) loss recognition, lower short-term interest rates, and a gain on disposal of business in the prior year. The company maintained a strong capital position, with total assets of $165.9 billion and total equity of $5.9 billion as of December 31, 2020. Ameriprise continued its commitment to shareholder returns through dividends and share repurchases, reflecting a strategy focused on its core growth areas of Advice & Wealth Management and Asset Management.
Feb 24, 2021
2019
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2019
Ameriprise Financial, Inc. reported solid financial performance for the year ended December 31, 2019. The company's diversified business model, primarily driven by its Advice & Wealth Management and Asset Management segments, contributed to a 1% increase in total net revenues to $13.0 billion. Net income saw a decrease of 10% to $1.9 billion, primarily impacted by a significant increase in the market impact on variable annuity guaranteed benefits. The company continued to execute its strategy of shifting towards lower capital, fee-based businesses, with Advice & Wealth Management now representing a majority of pretax adjusted operating earnings. Significant strategic moves during the year included the sale of its Auto & Home Insurance business and the conversion of its trust bank to a federal savings bank, Ameriprise Bank, FSB, signaling a focus on core growth areas and expanded banking capabilities. Ameriprise maintained a strong capital position, with total assets growing to $151.8 billion and shareholders' equity at $5.7 billion. The company returned value to shareholders through dividends and share repurchases, demonstrating a commitment to capital management. The report highlights the company's robust advisor network, with approximately 10,000 advisors, and a strong advisor retention rate, underscoring the value proposition offered to its financial professionals. Looking ahead, Ameriprise remains focused on capitalizing on demographic trends and market opportunities, while prudently managing risks associated with market fluctuations and regulatory changes.
Feb 26, 2020
2018
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2018
Ameriprise Financial, Inc. (AMP) reported strong financial performance for the fiscal year ending December 31, 2018. The company demonstrated a significant increase in pretax income, driven by growth in its Advice & Wealth Management segment and improved market conditions. Total net revenues saw a healthy increase, supported by higher management and financial advice fees, as well as distribution fees, reflecting growth in assets under management and administration. The company's strategy continues to focus on its core capabilities in wealth management and asset management, with a strategic shift towards lower capital, fee-based businesses. This diversification, combined with a robust advisor network and a client-centric approach through its 'Confident Retirement' strategy, positions Ameriprise for continued success. The company also actively manages its capital through share repurchases and dividend payments, returning value to shareholders while investing in future growth initiatives.
Feb 27, 2019
2017
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2017
Ameriprise Financial, Inc. (AMP) reported robust performance in its 2017 Form 10-K, highlighting significant growth in assets under management and administration (AUM/AUA), which reached $897 billion by year-end. The company's strategic focus on its core segments, Advice & Wealth Management and Asset Management, continues to drive results, with the Advice & Wealth Management segment experiencing particularly strong growth in wrap account assets, fueled by net inflows and market appreciation. The company demonstrated an increase in pretax income driven by positive market movements, favorable client activity, and effective management of expenses across its diversified business lines, including Annuities and Protection. Despite ongoing market volatility and a dynamic regulatory environment, Ameriprise Financial maintained a strong financial position and returned capital to shareholders through dividends and share repurchposes, underscoring its commitment to enhancing shareholder value.
Feb 23, 2018
2016
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2016
Ameriprise Financial, Inc. (AMP) delivered a mixed financial performance in 2016, as detailed in their 2017 10-K filing. The company saw a decrease in net income attributable to Ameriprise Financial by 16% to $1.56 billion, primarily due to the impact of "unlocking" (changes in valuation assumptions), net outflows in asset management, and a deconsolidation of certain investment entities. Total net revenues also declined by 4% to $11.7 billion, impacted by lower management and financial advice fees, distribution fees, and net investment income. Despite these headwinds, the company highlighted positive trends in its Advice & Wealth Management segment, which saw a 6% increase in operating earnings to $911 million, driven by growth in wrap account assets and higher earnings on brokerage cash. Assets under management and administration reached $787.4 billion, a slight increase from the prior year. Ameriprise Financial also continued its share repurchase program, demonstrating a commitment to returning capital to shareholders.
Feb 23, 2017
2015
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2015
Ameriprise Financial, Inc. (AMP) demonstrated resilience in 2015, reporting net income attributable to Ameriprise Financial of $1.56 billion and diluted earnings per share of $8.48. Despite a slight decrease in total net revenues compared to the previous year, the company saw growth in its Advice & Wealth Management segment, driven by increased wrap account assets and effective expense management. The Asset Management segment experienced a decline in managed assets, primarily due to net outflows and foreign currency translation impacts, which affected its operating earnings. The Annuities segment showed modest growth in operating earnings, while the Protection segment's operating earnings decreased, largely due to higher claims and provisions for estimated losses in its auto and home insurance business. The company also continued its commitment to shareholder returns through significant share repurchases and dividend payments, underscoring a focus on delivering shareholder value.
Feb 25, 2016
2014
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2014
Ameriprise Financial Inc. (AMP) reported strong financial performance for the fiscal year ending December 31, 2014, with total net revenues reaching $12.3 billion, a 10% increase year-over-year, primarily driven by growth in management and financial advice fees and other revenues. Net income attributable to Ameriprise Financial increased by 21% to $1.6 billion, with diluted earnings per share reaching $8.30. The company's assets under management and administration grew to $806.2 billion, reflecting market appreciation and net inflows across its Advice & Wealth Management and Asset Management segments. The filing also highlights the company's robust advisor network, strong client relationships, and commitment to capital returns to shareholders through dividends and share repurchases, with $1.8 billion remaining under its share repurchase authorization as of year-end 2014.
Feb 24, 2015
2013
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2013
Ameriprise Financial, Inc. (AMP) filed its 2013 10-K on February 26, 2014. The company demonstrated a strong increase in net income attributable to Ameriprise Financial, rising 30% to $1.334 billion from $1.029 billion in 2012. This growth was driven by a 10% increase in total net revenues to $11.199 billion, fueled by higher management and financial advice fees, distribution fees, and other revenues, largely due to increased assets under management and administration, which grew 13% to $771.3 billion. The company maintained a robust advisor network of over 9,700 advisors with strong retention rates. The conversion of its federal savings bank subsidiary to a national trust bank in January 2013 allowed for the release of capital, which was redeployed through share repurchases, positively impacting earnings per share. Ameriprise operates across five key segments: Advice & Wealth Management, Asset Management, Annuities, Protection, and Corporate & Other. The Advice & Wealth Management segment saw a significant 35% increase in operating earnings, driven by growth in wrap account assets and client activity. Similarly, the Asset Management segment experienced a 28% increase in operating earnings, benefiting from equity market appreciation and strategic business divestitures. The Annuities segment also showed substantial growth, with a 21% increase in operating earnings, supported by favorable unlocking and model changes. The Protection segment's operating earnings saw a slight decrease, primarily due to lower auto and home earnings. Overall, the company's financial performance in 2013 reflects a recovery and growth trajectory, supported by its diversified business model and strategic initiatives.
Feb 27, 2014
2012
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2012
Ameriprise Financial, Inc. (AMP) filed its 2012 10-K on February 27, 2013, detailing a robust financial services company with significant assets under management and administration, totaling $681 billion as of December 31, 2012. The company operates across five segments: Advice & Wealth Management, Asset Management, Annuities, Protection, and Corporate & Other. Its strategy centers on providing comprehensive financial planning and solutions to individual and institutional clients through a network of over 9,700 advisors. The report highlights a stable business model with a strong emphasis on long-term client relationships in wealth management, complemented by global asset management capabilities through Columbia Management and Threadneedle. Despite a challenging economic environment, Ameriprise demonstrated resilience, with growth in key areas like assets under management and administration. The company also detailed its ongoing strategic initiatives, including technological enhancements to advisor platforms and a client-centric "Confident Retirement" approach, underscoring its commitment to client success and advisor productivity.
Feb 27, 2013
2011
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2011
Ameriprise Financial, Inc. (AMP) reported solid results for the fiscal year ending December 31, 2011. The company demonstrated resilience in a challenging economic environment, growing its net revenues by 7% year-over-year to $10.2 billion. Net income attributable to Ameriprise Financial increased slightly to $1.08 billion, or $4.37 per diluted share, reflecting a stable operating performance. The company maintained a strong foundation, with $631 billion in assets under management and administration, though this represents a slight decrease from the previous year. Ameriprise continues to focus on its core strengths in wealth management and asset management, supported by a robust network of over 9,700 affiliated advisors.
Feb 24, 2012
2010
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2010
Ameriprise Financial's 2010 10-K shows a company that rebounded strongly from the 2008-2009 market dislocation, with total net revenues up 28% to $10.0 billion and net income attributable to Ameriprise Financial up 52% to $1.1 billion (diluted EPS $4.18 vs. $2.95). Operating net income, which excludes realized gains/losses, integration costs and the consolidation of certain investment entities, rose 53% to $1.1 billion. Growth was driven by market appreciation, net inflows into wrap accounts and variable annuities, and the April 30, 2010 acquisition of the long-term asset management business of Columbia Management from Bank of America, which pushed total owned, managed and administered assets up 47% to $672.7 billion. Management also reports client retention of 93% and a network of more than 11,400 affiliated financial advisors. The company is organized into five segments: Advice & Wealth Management (30% of external revenue), Asset Management (23%), Annuities (23%), Protection (20%), and Corporate & Other. The Columbia integration is expected to finish in 2011, with $130–160 million in total integration costs and $150–190 million in annualized synergies targeted for 2012. Shareholders' equity rose to $10.7 billion, and the board authorized up to $1.5 billion in share repurchases through the 2012 annual meeting, with $927 million remaining at year-end. The filing also flags material risks. Variable annuity guaranteed benefits remain a sensitivity to equity market declines and interest rates. The company faces regulatory change under the Dodd-Frank Act, including the abolition of the OTS and the transfer of oversight to the OCC and Federal Reserve. Pending litigation includes the Medical Capital and Provident Shale private placement class actions and arbitrations involving Securities America, with roughly $400 million of client investments in default, and the company recorded an additional roughly $40 million legal reserve after year-end.
Feb 28, 2011
2009
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2009
Ameriprise Financial (NYSE: AMP) reported a return to profitability in fiscal 2009 after a loss in 2008. Net income attributable to Ameriprise Financial was $722 million, or $2.95 per diluted share, versus a net loss of $38 million (-$0.17 per share) in 2008. Net revenues rose 13% to $7.8 billion, driven mainly by a $1.2 billion increase in net investment income, which benefited from $53 million of net realized gains compared with $777 million of realized losses in 2008. Total expenses fell 6% to $6.9 billion, largely because DAC amortization dropped 77% and distribution expenses declined. Owned, managed and administered assets grew 23% to $457.8 billion, and shareholders' equity rose to $9.3 billion from $6.2 billion, supported by a $869 million common stock issuance in June 2009. The filing also highlights ongoing headwinds and pending transactions. Management expects a challenging business climate to persist, and the company remains exposed to variable annuity guaranteed-benefit liabilities, which increase when equity markets fall. Debt was $2.2 billion at year-end, and the company holds an unrelated capital cushion at its insurance subsidiaries. Management's stated multi-year targets are net revenue growth of 6% to 8%, diluted EPS growth of 12% to 15%, and return on equity of 12% to 15%. The pending acquisition of Columbia Management's long-term asset management business, expected to close in spring 2010 for $0.9 to $1.2 billion, is a key strategic event, with integration costs estimated at $130 to $160 million through 2011. For investors, the key questions are whether the 2009 earnings recovery is sustainable given market sensitivity, how the Columbia integration will perform, and whether the company can maintain its advisor network and retention rates. The filing shows strong liquidity, improving capital at subsidiaries, and a diversified model across four main segments, but also significant regulatory scrutiny and litigation exposure, including pending class actions tied to private placement sales through Securities America.
Feb 24, 2010
2008
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2008
Ameriprise Financial Inc. (AMP) reported a net loss of $38 million on net revenues of $7.0 billion for the fiscal year ended December 30, 2008. This marks a significant downturn from the $814 million net income reported in the prior year, largely driven by unprecedented market volatility and credit crises that impacted all segments of the business, particularly net investment income which saw a 59% decline. Despite the challenging economic environment, Ameriprise maintained strong client and advisor retention rates, with 94% and 92% respectively. The company also completed strategic acquisitions of H&R Block Financial Advisors, J. & W. Seligman & Co., and Brecek & Young Advisors, Inc. during the fourth quarter of 2008, aiming to strengthen its retail distribution and asset management capabilities. However, the company temporarily suspended its stock repurchase program due to prevailing market conditions. Investors should note the significant decline in total owned, managed, and administered assets from $479.8 billion to $372.1 billion, reflecting market depreciation.
Mar 2, 2009
2007
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2007
Ameriprise Financial (NYSE: AMP) reported 2007 results that reflect a company completing its separation from American Express, with net income up 29% to $814 million on net revenues of $8.7 billion (up 8%) and pretax income of $1.0 billion. Management highlighted that adjusted earnings, which exclude after-tax separation costs, rose 12% to $968 million, and adjusted return on equity improved to 12.6% from 11.8%. The company said it met or exceeded its adjusted financial targets for 2007, and the separation costs have now been fully incurred, with $890 million in cumulative non-recurring costs since the 2005 spin-off. Growth was driven by fee-based businesses. Management and financial advice fees rose 20% to $3.2 billion, supported by wrap account inflows of $11.7 billion and variable annuity inflows of $4.9 billion. Owned, managed and administered assets reached $480.2 billion, up 3%. Net investment income fell 6% to $2.1 billion as fixed annuity and certificate balances declined, reflecting management's deliberate shift toward fee-based revenue that is less capital-intensive. Risk factors remain significant. Variable annuity guaranteed living benefit reserves grew sharply as market volatility increased, with GMWB and GMAB reserves moving to positive liabilities of $136 million and $33 million. The 10% equity-market sensitivity was estimated at a $141 million pretax impact after hedging. The company also disclosed elevated regulatory scrutiny, several pending customer and regulatory matters, and a 6% share of invested assets rated below investment grade. Capital return remained active, with $977 million of share repurchases in 2007 and $418 million remaining under the current authorization.
Feb 29, 2008
2006
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2006
Ameriprise Financial (NYSE: AMP), spun off from American Express on September 30, 2005, reported 2006 results that show a company in transition but growing. Total revenues rose 9% to $8.1 billion and net income increased 10% to $631 million, though reported results absorbed $361 million of pretax non-recurring separation costs ($235 million after tax). Adjusted earnings, excluding those costs, rose 25% to $866 million, and adjusted return on equity improved to 11.8% from 10.2%. Management reports that revenue and earnings growth, excluding separation effects, exceeded its targets of 6-8% and 10-13%, respectively. Owned, managed and administered assets reached $466.1 billion, up 9%, driven by wrap-account inflows and market appreciation. The growth engine is the fee-based business. Management fees rose 15% and distribution fees rose 13%, reflecting a shift from fixed-spread products toward asset-based fees from wrap accounts, variable annuities and brokerage. Net investment income fell 2% as fixed annuity and certificate balances declined, and the company has deliberately de-emphasized fixed products because of the rate environment. Investors should note several structural items: the company is adding interest expense from its new capital structure, it will accelerate DAC amortization under SOP 05-1 in 2007 (roughly $210 million pretax cumulative reduction), and it carries an indemnity exposure to American Express of more than $1.5 billion if a 50% or greater ownership change triggers the tax-free treatment of the spin-off. The filing also highlights litigation and regulatory risk, including the $100 million securities class action settlement, pending arbitration awards against its Securities America unit ($22 million and $9 million), and ongoing SEC, NASD and OTS scrutiny of financial planning and sales practices. Capital is adequate, with RiverSource Life's total adjusted capital at roughly 595% of its company action level RBC, and the company is returning capital through a $750 million buyback program, of which $366 million remained at year end, and a quarterly dividend of $0.11.
Feb 27, 2007
2005
AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2005
Ameriprise Financial (AMP), spun off from American Express on September 30, 2005, filed its first standalone 10-K on March 8, 2006. Reported 2005 total revenues were $7.48 billion (up 7%), pretax income before discontinued operations and accounting change fell 33% to $745 million, and net income declined 28% to $574 million. The decline reflects $293 million of pretax separation costs ($191 million after-tax), a $100 million pretax securities class action settlement, and the deconsolidation of AMEX Assurance. Excluding separation effects and AMEX Assurance, management reported revenue growth of about 9% and income before discontinued operations down about 4%, with return on equity below the 12-15% target. Total owned, managed and administered assets reached $428.2 billion, up 5%, with growth driven by wrap accounts, variable annuities and Threadneedle. The business profile centers on a financial advisor network of over 12,000 advisors, with more than 10,500 branded advisors, and a mass-affluent client focus. The company operates two segments, Asset Accumulation and Income (about 67% of revenue) and Protection (about 26%), and it is rebranding under the Ameriprise and RiverSource names. Key risks for investors include regulatory scrutiny of mutual fund revenue sharing and market-timing practices, reliance on American Express for transition services and disaster recovery for up to two years, a potential indemnity to American Express exceeding $1.5 billion if a 50% or greater ownership change occurs, and sensitivity to equity markets through guaranteed minimum benefits on variable annuities. Outflows from proprietary RiverSource mutual funds and a material weakness-type change in internal control during the transition are also worth monitoring. Capital position is solid. Subsidiary IDS Life reported an RBC ratio of 435%, the company raised $1.5 billion of senior notes in November 2005, and it has a $750 million revolving credit facility. Shareholders' equity rose to $7.69 billion, and the board declared a $0.11 quarterly dividend and authorized a 2 million share buyback for 2006.
Mar 8, 2006