10-KPeriod: FY2006

AMERIPRISE FINANCIAL INC Annual Report, Year Ended Dec 31, 2006

Filed February 27, 2007For Securities:AMP

Summary

Ameriprise Financial, Inc. (AMP) reported strong performance for the fiscal year ended December 31, 2006, with total revenues of $8.1 billion and net income of $631 million. The company has successfully transitioned into an independent entity following its separation from American Express in September 2005. Ameriprise serves approximately 2.8 million clients through a network of over 12,000 financial advisors, focusing on the mass affluent and affluent market segments. The company's business is divided into two primary segments: Asset Accumulation and Income, and Protection. The Asset Accumulation and Income segment, which accounted for 73% of revenues, includes mutual funds, annuities, and other investment products. The Protection segment, contributing 24% of revenues, offers life insurance, disability income, and personal auto and home insurance. Ameriprise emphasizes a client-centric approach centered on personalized financial planning.

Key Highlights

  • 1Ameriprise Financial generated $8.1 billion in total revenues and $631 million in net income for the year ended December 31, 2006.
  • 2The company serves approximately 2.8 million clients through a network of over 12,000 financial advisors.
  • 3Assets owned, managed, and administered worldwide totaled $466.1 billion as of December 31, 2006, an increase from $428.2 billion in the prior year.
  • 4The separation from American Express, completed in September 2005, has been successfully managed, with the company operating as an independent entity.
  • 5The company's strategic focus is on growing its mass affluent and affluent client base, strengthening its leadership in financial planning, and delivering profitable growth.
  • 6Ameriprise is investing in its advisor network and product development to enhance its offerings and distribution reach.
  • 7The company maintains a strong balance sheet and robust risk management processes, supported by favorable financial strength ratings for its insurance subsidiaries.

Frequently Asked Questions

For the fiscal year ended December 31, 2006, Ameriprise Financial reported total revenues of $8.1 billion and net income of $631 million. Assets owned, managed, and administered worldwide reached $466.1 billion.

Ameriprise Financial successfully completed its separation from American Express in September 2005 and is now operating as an independent, publicly traded company. While this transition involved significant separation costs, the company has established its own operational infrastructure and brand identity, focusing on its core financial planning and advisory services.

Ameriprise operates primarily through two segments: Asset Accumulation and Income, and Protection. Its key strategic priorities include growing its mass affluent and affluent client base, strengthening its leadership in financial planning and advice, delivering profitable growth through an enhanced advisor network, and expanding its product and distribution capabilities.

Ameriprise emphasizes a comprehensive risk management process, supported by a strong balance sheet and favorable financial strength ratings. The company utilizes various tools and processes to manage market, credit, operational, and regulatory risks. Risk management is integrated into the decision-making framework, considering client needs, competitor positioning, company capabilities, and financial metrics.