Ameriprise 2005 Annual Report Download - page 10

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Financial Products and Solutions
For our clients’ asset accumulation and income needs, our solutions include RiverSource funds,
access to more than 200 unaffiliated mutual fund families, the nation’s largest non-discretionary
mutual fund and other securities “wrap program,” variable and fixed annuity products, investment
certificates, brokerage services, individual stocks and bonds, as well as deposit and credit solutions.
Our comprehensive protection solutions help address our clients’ insurance needs. We are a
leading provider of variable and fixed universal life insurance, term insurance, disability income,
long-term care, and auto and homeowners insurance.
The majority of our proprietary solutions are offered under the RiverSourceSM brand, which we
introduced as part of our spin-off from American Express. The RiverSource brand gives us the flexibility
to deliver these quality solutions through our advisor network and to selectively offer them to institutional
and sub-advisory clients, as well as through agreements with unaffiliated retail distributors such as
banks and broker-dealers. Building on our initial success with RiverSource annuities, we expect to
expand these third-party offerings to include our RiverSource investment products.
Internationally, Threadneedle Investments, our London-based international investment platform, is
one of the United Kingdom’s premier asset management organizations. Threadneedle Investments
offers a wide range of asset management products and services to institutional clients as well as
to retail clients through intermediaries, banks and fund platforms in Europe, and to U.S. clients
through RiverSource Investments.
Delivering Results for Shareholders
For this extraordinary transition year, our 2005 financial results demonstrate the strength of our
business and the strategies we’re pursuing to help more clients. For the year, excluding the impact
of the separation, adjusted revenues3 grew 9 percent to $7.3 billion, from $6.8 billion in the same
period of 2004. Adjusted net income3 was $693 million, a decrease of 4 percent from $723 million
in 2004. Adjusted net income for 2005 includes incremental costs associated with becoming an
independent company. Our adjusted return on equity3 was 10.2 percent. Our long-term financial
targets3 for building shareholder value, on average and over time, are revenue growth of 6 to 8
percent, net income growth of 10 to 13 percent and return on equity of 12 to 15 percent.
What’s next.SM
To build on these results, we have set five strategic objectives for 2006. First, to continue to grow
our mass affluent client base. Our efforts include innovative national and local client acquisition
programs, and strengthening our client loyalty programs such as Ameriprise Gold Financial
ServicesSM and Ameriprise Platinum Financial Services.SM In late 2005, we launched the largest
3
Management believes that the financial results,
excluding the effects of the non-recurring separation
costs, the impact of discontinued operations,
cumulative effect of accounting change and AMEX
Assurance, best reflect the basis of evaluating our
performance as an independent company. See
our discussion of non-GAAP financial information
and forward-looking statements included in our
Management’s Discussion and Analysis.
| Ameriprise Financial, Inc. 8
Adjusted revenues grew 9% to
$7.3 billion
in 2005