10-KPeriod: FY2005

AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2005

Filed March 8, 2006For Securities:AMP

Summary

Ameriprise Financial, Inc. (AMP) has filed its 2005 Form 10-K, detailing its operations as an independent, publicly traded financial services company following its separation from American Express Company in September 2005. The company provides a comprehensive suite of financial planning, asset accumulation, income, and protection solutions, primarily targeting the mass affluent market. Its business is structured into two main operating segments: Asset Accumulation and Income, and Protection. For the fiscal year ending December 31, 2005, Ameriprise Financial reported total revenues of $7,484 million and a net income of $574 million. The company managed, owned, and administered over $428 billion in assets worldwide. Key strengths highlighted include a strong heritage, deep client relationships, a focus on financial planning for the growing mass affluent segment, a large and well-trained advisor network, and a diversified product offering. The company's strategy focuses on growing its mass affluent client base, strengthening its financial planning leadership, driving profitable growth, and enhancing its operating platform.

Key Highlights

  • 1Ameriprise Financial completed its separation from American Express Company on September 30, 2005, becoming an independent publicly traded entity.
  • 2The company reported total revenues of $7,484 million and net income of $574 million for the fiscal year ended December 31, 2005.
  • 3As of December 31, 2005, Ameriprise Financial managed, owned, and administered approximately $428 billion in assets worldwide.
  • 4The company's primary target market is the 'mass affluent' segment, defined as households with income above $50,000 and investable assets between $100,000 and $1,000,000.
  • 5Ameriprise operates through two main segments: Asset Accumulation and Income, and Protection, serving 2.8 million individual, business, and institutional clients through a network of over 12,000 financial advisors.
  • 6Significant legal and regulatory matters are ongoing, including settlements related to past revenue sharing practices and market timing allegations, resulting in civil penalties and disgorgement.
  • 7The company is focused on expanding its brand awareness for 'Ameriprise' and 'RiverSource' and deepening client relationships post-separation from American Express.

Frequently Asked Questions

For the fiscal year ended December 31, 2005, Ameriprise Financial reported total revenues of $7,484 million and a net income of $574 million. The company managed, owned, and administered over $428 billion in assets worldwide.

The most significant event was the completion of its separation from American Express Company on September 30, 2005, through a tax-free distribution to American Express shareholders, making Ameriprise Financial an independent, publicly traded company.

Ameriprise Financial primarily targets the 'mass affluent' market. Its strategy focuses on growing this client base, strengthening its leadership in financial planning and advice, delivering profitable growth, and enhancing its operating platform, including expanding its brand awareness for Ameriprise and RiverSource.

The company operates through two main segments: Asset Accumulation and Income, which offers mutual funds, annuities, and other asset management products; and Protection, which offers life insurance, disability income insurance, and personal auto and home insurance.

Yes, the filing notes ongoing legal and regulatory proceedings, including settlements of class-action lawsuits related to revenue sharing and market timing practices, resulting in significant financial penalties. There are also ongoing investigations and examinations by various regulatory bodies.