Ameriprise 2005 Annual Report Download - page 49

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47
Ameriprise Financial, Inc. |
IDS Property
Casualty
Insurance Company
Ameriprise
Financial
Services, Inc.
American
Enterprise
Investment
Services
Securities
America Financial
Corporation
AMEX
Assurance
Company
IDS Life Insurance Company
of New York
American Centurion Life
Assurance Company
American Partners Life
Insurance Company
American Enterprise Life
Insurance Company
Ameriprise
Certificate
Company
RiverSource
Investments,
LLC
IDS Life
Insurance
Company
Threadneedle
Asset
Management
Holdings Ltd.
Ameriprise Financial, Inc.
RiverSource Tax
Advantaged
Investments, Inc.
(Affordable housing sub)
Ameriprise Trust
Company
We are primarily a parent holding company for the operations
carried out by our subsidiaries. Because of our holding com-
pany structure, our ability to meet our cash requirements,
including the payment of dividends on our common stock, sub-
stantially depends upon the receipt of dividends from our
subsidiaries, particularly our life insurance subsidiary, IDS Life,
our face-amount certificate subsidiary, Ameriprise Certificate
Company (formerly American Express Certificate Company), or
ACC, our investment advisory company, RiverSource
Investments, LLC, our retail introducing broker-dealer sub-
sidiary, Ameriprise Financial Services, Inc. (formerly American
Express Financial Advisors Inc.), or AMPF, and our clearing bro-
ker-dealer subsidiary, American Enterprise Investment
Services, or AEIS. The payment of dividends by many of our
subsidiaries, including IDS Life, IDS Property Casualty Co.,
ACC, AMPF and AEIS, is restricted. In addition to the particular
regulations restricting dividend payments, we take into account
the overall health of the business, capital levels and risk man-
agement considerations in determining a dividend strategy for
payments to our company from our subsidiaries, and in decid-
ing to use cash to make capital contributions to our
subsidiaries.
The ability of our subsidiaries to pay dividends is subject to
regulatory limits. The following table sets out the dividends
paid to our company (including extraordinary dividends paid
a simplified organizational structure. Names reflect current legal entity names of subsidiaries. IDS Property Casualty Co., doing
business as Ameriprise Auto & Home Insurance, uses certain insurance licenses held by AMEX Assurance. The AMEX Assurance
travel insurance and card related business was ceded to American Express effective July 1, 2005 and was deconsolidated on a
U.S. GAAP basis effective September 30, 2005. As of September 30, 2005, we entered into an agreement to sell the AMEX
Assurance legal entity to American Express within two years after the Distribution.
with necessary advance notifications to regulatory authorities),
net of capital contributions made by our company, and the divi-
dend capacity (amount within the limitations of the applicable
regulatory authorities as further described below) for each of
IDS Life, ACC, AMPF, IDS Property Casualty Co. and AEIS sub-
sidiaries for the periods indicated:
Years ended December 31, 2005 2004 2003
(in millions)
Dividends paid/(contributions
made), net
IDS Life $(270) $ 930 $ –
ACC 25 –50
AMPF (100) 20 20
AEIS 15 61 –
IDS Property Casualty Co. 52 87 58
Total $(278) $ 1,098 $128
Dividend capacity
IDS Life $ 380 $ 449 $241
ACC 29 15 21
AMPF 47 103 74
AEIS 95 137 109
IDS Property Casualty Co. 35 31 18
Total $ 586 $ 735 $463