8-KOther Events

AMERIPRISE FINANCIAL INC 8-K Report, Corporate Update (Jan 20, 2009)

Filed January 20, 2009For Securities:AMP

Summary

Ameriprise Financial, Inc. (AMP) announced on January 20, 2009, that it will record a pre-tax restructuring charge of approximately $60 million in its fourth quarter 2008 results. This charge is associated with accelerated re-engineering efforts aimed at improving operational efficiency and reducing costs. The company anticipates realizing significant annual run-rate expense savings exceeding $130 million, with over $80 million expected to be achieved in 2009. These savings are primarily projected to come from selective employee headcount reductions. Ameriprise emphasized its commitment to maintaining a high level of service for its clients and advisors, with client service operations largely unaffected by these restructuring measures.

Key Highlights

  • 1Ameriprise Financial to record a pre-tax restructuring charge of approximately $60 million for Q4 2008.
  • 2Anticipated annual run-rate expense savings of over $130 million from re-engineering efforts.
  • 3Expected expense savings of over $80 million in the fiscal year 2009.
  • 4Savings will be achieved primarily through selective reductions in employee headcount.
  • 5Commitment to maintaining high levels of service for clients and advisors.
  • 6Client service operations are expected to be largely unaffected by the restructuring.
  • 7The filing includes standard forward-looking statement disclaimers regarding risks and uncertainties.

Frequently Asked Questions

The restructuring charge of approximately $60 million is due to accelerated re-engineering efforts aimed at improving operational efficiency and reducing costs within the company.

The company expects to achieve over $130 million in annual run-rate expense savings, with more than $80 million of these savings anticipated for 2009.

The savings are primarily expected to be realized through selective reductions in employee headcount.

Ameriprise Financial stated that its client service operations will be largely unaffected and that the company is committed to maintaining its high level of service to clients and advisors.