What were the main drivers of revenue growth for Ameriprise Financial in the first nine months of 2007?

Revenue growth was primarily driven by increases in 'Management, financial advice and service fees' (up 18%) and 'Distribution fees' (up 20%). This reflects strong net inflows in wrap accounts and annuity variable accounts, market appreciation, and continued advisor productivity gains, indicating a successful shift towards fee-based products.

How did the company's expenses change during the period?

Total expenses increased by 7% to $5.77 billion. Key drivers included higher compensation and benefits (particularly field compensation), increased benefits, claims, losses, and settlement expenses (impacted by market volatility on variable annuity reserves), and higher amortization of deferred acquisition costs. Separation costs decreased by 13% year-over-year as the separation from American Express neared completion.

What is the current status of Ameriprise Financial's separation from American Express?

The separation process has been completed as of September 30, 2007. All transition service agreements with American Express have been terminated. Residual separation costs are expected to be incurred in the fourth quarter of 2007, amounting to approximately $25 million to $30 million.

What is the company's strategy regarding its product mix and capital intensity?

Ameriprise is strategically shifting towards less capital-intensive, fee-based products. This is evidenced by strong net inflows into wrap accounts and annuity variable accounts, while fixed annuity and certificate balances are declining. This strategy aims to improve profitability and reduce capital requirements.

AMP 10-Q Quarterly Report Q3 FY2007 — Revenue, Net Income, EPS

Summary

Ameriprise Financial, Inc. reported solid revenue and net income growth for the nine months ended September 30, 2007, compared to the same period in 2006. Total revenues increased by 8% to $6.45 billion, driven by strong performance in management, financial advice, and service fees, as well as distribution fees, reflecting increased client assets and a strategic shift towards less capital-intensive, fee-based products. Net income rose by a significant 22% to $559 million. This growth was supported by effective expense management, although tempered by higher benefits, claims, and settlement expenses and increased field compensation. The company's ongoing share repurchase program also signals confidence in its financial position and commitment to shareholder value. The separation from American Express has been completed, with residual costs expected to conclude in the fourth quarter of 2007.

Key Highlights

1Total revenues increased by 8% year-over-year to $6.45 billion for the nine months ended September 30, 2007.
2Net income increased by 22% year-over-year to $559 million for the nine months ended September 30, 2007.
3Management, financial advice, and service fees grew by 18% to $2.53 billion, indicating strong growth in fee-based services.
4Distribution fees increased by 20% to $1.11 billion, reflecting robust advisor sales.
5The company has completed its separation from American Express, with final separation costs expected in Q4 2007.
6Owned, managed, and administered assets grew by 12% to $491.6 billion, demonstrating an increase in assets under management.
7Significant share repurchases totaling $665 million were executed in the first nine months of 2007.

AMERIPRISE FINANCIAL INC Quarterly Report for Q3 Ended Sep 30, 2007

Summary

Key Highlights

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