Ameriprise 2006 Annual Report Download

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Putting millions
of dreams on track.
One dream at
a time.
Annual Report 2006

Table of contents

  • Page 1
    Putting millions of dreams on track. One dream at a time. Annual Report 2006

  • Page 2
    ... afï¬,uent and afï¬,uent U.S. households.* Many of them: baby boomers who are entering retirement or already are there. They need help achieving their dreams and goals. And they want financial advice and solutions to help get them there. *Source: SRI Consulting Business Intelligence, 2006-2007.

  • Page 3

  • Page 4

  • Page 5
    12,000+ financial advisors and registered representatives working face to face in long-term relationships with two million retail clients nationwide - helping clients go from unique dreams to plans that can help them achieve their life goals.

  • Page 6
    8,600+ employees working to support and serve clients and advisors.

  • Page 7

  • Page 8
    ... Highlights U.S. GAAP Non-GAAP Financial Information(2) Change 2006 2005 2006 2005 Change ($ in millions, except per share amounts) ($ in millions, except per share amounts) Revenues Net income Net income per diluted share Return on equity(1) Shareholders' equity $ 8,140 $ 631 $ 2.54...

  • Page 9
    ... to believe that nearly a year and a half has passed since we rang the bell at the New York Stock Exchange to introduce Ameriprise Financial, Inc. as an independent public company following our spin off from American Express. We have accomplished more in that short period of time than many thought...

  • Page 10
    ... discontinued operations and AMEX Assurance Company from 2005 and 2004 revenues and earnings, the after-tax non-recurring separation costs from 2006 and 2005 earnings, and the after-tax cumulative effect of an accounting change from 2004 earnings. 8 Ameriprise Financial, Inc. 2006 Annual Report

  • Page 11
    ... Ameriprise Financial and other companies - that address cash management, savings, investing, income generation, protection and trust needs. Investing in new products is a critical element of our strategy to grow client assets. In 2006, we launched more than 40 asset management, insurance, annuity...

  • Page 12
    ... and build its retail, institutional, hedge fund and real estate businesses. RiverSource Annuities and RiverSource Insurance also performed well in 2006. We generated a 46 percent increase in variable annuity sales, increased our market share in universal life and variable universal life insurance...

  • Page 13
    ... I feel very good about our ability to execute our strategy and to claim our place among the nation's leading financial services companies. Thank you 2006 has been a year of remarkable transformation for Ameriprise Financial, and my executive leadership team and I owe our sincere gratitude to many...

  • Page 14
    ...in investable assets.* Many are baby boomers and each one a potential Ameriprise Financial client beyond the two million retail clients we work with today. *Source: SRI Consulting Business Intelligence, 2006-2007. 2004 2005 2006 Data represent Ameriprise Financial branded advisor clients at year...

  • Page 15
    ...-lasting relationships with clients. As a result, Ameriprise Financial Services has more financial planning clients than any other company.** **Source: SRI Consulting Business Intelligence, 2006-2007. ** Source: Based on the number of financial plans annually disclosed in Form ADV, Part 1, Item...

  • Page 16
    ... to provide the services consumers say they want: comprehensive, long-term financial planning and advice. Total Advisors 12,354 12,440 12,592 A powerful advisor force With the third largest retail sales force among Securities Industry Association member firms and more CERTIFIED FINANCIAL PLANNER...

  • Page 17
    ..., are driving significant gains in per-advisor productivity and strong advisor retention rates. Our brand and value proposition are centered on our advisors, and they are energized by our independence and their opportunity at Ameriprise Financial. Ameriprise Financial, Inc. 2006 Annual Report 15

  • Page 18
    ...> Savings Accounts > Credit Cards > Consumer Loans > Mortgages > Home Equity Products > Personal Trust Services Protection Life > Fixed Universal Life > Variable Universal Life > Whole Life > Term Life > Group Life Auto & Home > Auto Insurance > Home Insurance Health > Disability Income > Long-Term...

  • Page 19
    ... financial plans. From variable annuities with living benefits to mutual funds, from certificates to money market accounts, from variable universal life insurance to disability income insurance, we offer compelling products and solutions designed to address the complexities of our clients' needs...

  • Page 20
    ... RiverSource Internally Managed Equity Funds* universal life insurance, a product that provides the dual benefits of Top Half Lipper Performance protection and asset growth potential. 80 Equal Weighted Percentage of Funds Through Ameriprise Bank, clients have access to traditional banking services...

  • Page 21
    ... Co. of New York, Albany, New York. These companies are affiliated with Ameriprise Financial Services, Inc. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuities in New York. Ameriprise Bank, FSB, member FDIC, provides certain deposit and lending products and...

  • Page 22
    ... planning and solutions for the nation's mass afï¬,uent and afï¬,uent consumers. It's the power of Ameriprise financial advisors working face to face with clients, helping them achieve their dreams one client at a time - multiplied millions of times. Ameriprise Financial, Inc. cannot guarantee...

  • Page 23
    ... of Cash Flows 60 Consolidated Statements of Shareholders' Equity 62 Notes to Consolidated Financial Statements 63 Consolidated Five-Year Summary of Selected Financial Data 104 Glossary of Selected Terminology 105 Performance Graph 106 General Information 108 Ameriprise Financial, Inc. 2006 Annual...

  • Page 24
    ... attractive return on capital. RiverSource Funds Overview We are a leading financial planning and services company with more than 12,000 financial advisors and registered representatives that provides solutions for clients' asset accumulation, income management and insurance protection needs. We...

  • Page 25
    ... 2006, Ameriprise Bank purchased for cash consideration a total of $481 million of customer loans from AEBFSB. Ameriprise Bank offers a suite of borrowing, cash management and personal trust products and services, primarily through our branded advisors. Ameriprise Financial, Inc. 2006 Annual Report...

  • Page 26
    ...-alone company but were paid by American Express. and the "spread" income generated on our annuities, faceamount certificates and universal life insurance products. Asset management fees, which we include within management, financial advice and services fees, are generally based on the market value...

  • Page 27
    ... used to project client asset value growth rates, and assumptions about surrenders, withdrawals and deposits comprise projected persistency rates. Our management must also make assumptions to project maintenance expenses associated with servicing our annuity and insurance businesses during the...

  • Page 28
    ... of our variable universal life insurance products by 10 basis points, the impact on the DAC balance would be an increase or decrease of approximately $5 million. Additionally, if we extended or reduced the amortization periods by one year for variable annuities to reflect changes in premium paying...

  • Page 29
    ... clients address identified financial objectives related to asset accumulation and income management. Products and services in this segment are related to asset management, brokerage and banking, and include mutual funds, wrap accounts, variable and fixed annuities, brokerage accounts and investment...

  • Page 30
    ... in our financial advisor-managed assets of $6.3 billion in Ameriprise Financial wrap accounts and $1.8 billion in SAI wrap accounts and had $5.3 billion in net inflows in our owned RiverSource annuity variable accounts. We had net outflows in 2006 in our retail managed RiverSource mutual funds of...

  • Page 31
    ... % Change (in billions, except percentages) 2004 Amount Owned Assets: Separate accounts Investments Other(1) Total owned assets Managed Assets: Managed Assets-Retail RiverSource Mutual Funds Threadneedle(2) Mutual Funds Ameriprise Financial Wrap Account Assets SAI Wrap Account Assets Total managed...

  • Page 32
    ... the table below. Years Ended December 31, AMEX Assurance(1)(2) 2006 2005 Change (in millions, except percentages) Revenues Management, financial advice and service fees Distribution fees Net investment income Premiums Other revenues Total revenues Expenses Compensation and benefits: Field Non...

  • Page 33
    ...2006. Strong broker-dealer activity and increased advisor productivity continued to drive up distribution fees. Distribution fees in our brokerage business in 2006 increased $156 million over 2005, reflecting strong net inflows in Ameriprise Financial and SAI wrap accounts and strong growth in sales...

  • Page 34
    ... lower average certificate balances. The related benefit from economically hedging stock market certificates and equity indexed annuities is reflected in net investment income. Benefits, claims, losses and settlement expenses increased in 2006 primarily as a result of higher life and health related...

  • Page 35
    ..., associated with the sale of our defined contribution recordkeeping business in the second quarter of 2006. Certain legal and regulatory costs were $74 million in 2006 compared to $140 million in 2005, of which $100 million was related to the settlement of a consolidated securities class action...

  • Page 36
    ... years ended December 31, 2006 and 2005: Years Ended December 31, 2006 Revenues Management, financial advice and service fees Distribution fees Net investment income Other revenues Total revenues Expenses Compensation and benefits-field Interest credited to account values Benefits, claims, losses...

  • Page 37
    ... compression in the fixed annuity and certificate products. Revenues Management, financial advice and service fees increased primarily as a result of growth in our wrap assets and variable account assets. Our brokerage business had an increase in management, financial advice and service fees of $252...

  • Page 38
    ... table below. Years Ended December 31, AMEX Assurance 2006 Revenues Management, financial advice and service fees Distribution fees Net investment income Premiums Other revenues Total revenues Expenses Compensation and benefits-field Interest credited to account values Benefits, claims, losses and...

  • Page 39
    ...operations of our Corporate segment for the years ended December 31, 2006 and 2005: Years Ended December 31, 2006 Revenues Management, financial advice and service fees Distribution fees Net investment income (loss) Other revenues Total revenues Expenses Compensation and benefits-field Interest and...

  • Page 40
    ...) Revenues Management, financial advice and service fees Distribution fees Net investment income Premiums Other revenues Total revenues Expenses Compensation and benefits: Field Non-field Total compensation and benefits Interest credited to account values Benefits, claims, losses and settlement...

  • Page 41
    .... Benefits, claims, losses and settlement expenses increased primarily as a result of higher expenses related to auto and home, life and long term care offset by a $54 million decline from the impact of ceding the AMEX Assurance reserves in 2005. Higher average auto and home insurance policies in...

  • Page 42
    ...-1, "Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts." Equity market conditions and other factors resulted in increased amortization of DAC in 2005 compared to 2004, particularly for our growing variable annuity business...

  • Page 43
    ... Years Ended December 31, 2005 2004 Change (in millions, except percentages) Revenues Management, financial advice and service fees Distribution fees Net investment income Other revenues Total revenues Expenses Compensation and benefits-field Interest credited to account values Benefits, claims...

  • Page 44
    ... insurance on higher average variable and fixed universal life policies in-force. 42 Ameriprise Financial, Inc. 2006 Annual Report Expenses Compensation and benefits-field in 2005 reflect $35 million in ceding commissions paid to American Express related to AMEX Assurance. Benefits, claims, losses...

  • Page 45
    ... The growth in management, financial advice and service fees in 2005 was primarily driven by an increase in financial planning revenue. The net investment losses in 2005 and 2004 were primarily the result of amortization of affordable housing investments. Expenses The compensation and benefits-field...

  • Page 46
    ..., American Enterprise Investment Services, Inc. ("AEIS"), our auto and home insurance subsidiary, IDS Property Casualty Insurance Company ("IDS Property Casualty"), doing business as Ameriprise Auto & Home Insurance, and our investment advisory company, RiverSource Investments LLC. The payment of...

  • Page 47
    ... cash used in investing activities of $255 million for the year ended December 31, 2005, a cash flow improvement of $3.8 billion. Purchases of Available-for-Sale securities decreased $5.9 billion to $2.8 billion in 2006 compared to $8.7 billion in 2005. Ameriprise Financial, Inc. 2006 Annual Report...

  • Page 48
    ... obligations would be met by separate account assets. (4) (5) The payments due by year are based on contractual term maturities. However, contractholders have the right to redeem the investment certificates earlier and at their discretion subject to surrender charges, if any. Redemptions are most...

  • Page 49
    ... funding commitments were $617 million at December 31, 2006. For additional information relating to these contractual commitments, see Note 24 to our Consolidated Financial Statements. Off-Balance Sheet Arrangements During the year ended December 31, 2006, we closed on three structured investments...

  • Page 50
    ...Sources of Market Risk Asset-based management and 12b-1 fees Variable annuities and variable universal life ("VUL") products Fixed annuities, fixed portion of variable annuities, fixed portion of VUL and fixed insurance products Flexible savings and other fixed rate certificates Deferred acquisition...

  • Page 51
    ... bulk of the investment risk. We face interest rate and equity price risk on these products from two primary sources: the management fees we earn on separate account assets and the guaranteed benefits associated with our variable annuities. Management fees on separate account assets are hedged along...

  • Page 52
    ...-Variable Annuities and VUL Products The variable annuity guaranteed benefits guarantee payouts to the annuity holder under certain specific conditions regardless of the performance of the investment assets. For this reason, when equity markets decline, the returns from the separate account assets...

  • Page 53
    ... is selected, the total of equity-linked return and guaranteed rate of interest cannot exceed the maximum return. Reserves for our stock market certificates are included in Ameriprise Financial, Inc. 2006 Annual Report 51 Equity Price Risk-Equity Indexed Annuities The equity-linked return to...

  • Page 54
    ... strategy for an immaterial net exposure. Equity Price Risk-DAC A decline in equity markets would result in reduced fee revenue and an increase in guaranteed death and living benefit reserves associated with our variable annuity products, with the increase partly offset by changes in hedge asset...

  • Page 55
    ... proceedings and regulatory actions; our investment management performance; effects of competition in the financial services industry and changes in our product distribution mix and distribution channels; our capital structure as a stand-alone company, including our ratings and indebtedness, and...

  • Page 56
    ... Financial Statements for the years ended December 31, 2005 and 2004 have been audited by Ernst & Young LLP, our independent registered public accounting firm. Through 2004, Ernst & Young LLP provided audit services to our company as part of the audit services it provided to American Express Company...

  • Page 57
    ...of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. The Company's management assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2006. In making this assessment, the Company's management used...

  • Page 58
    ... in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our...

  • Page 59
    ... years in the period ended December 31, 2006, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of Ameriprise Financial, Inc.'s internal control...

  • Page 60
    ... of Income Ameriprise Financial, Inc. Years Ended December 31, 2006 Revenues Management, financial advice and service fees Distribution fees Net investment income Premiums Other revenues Total revenues Expenses Compensation and benefits Interest credited to account values Benefits, claims, losses...

  • Page 61
    ...2006 Assets Cash and cash equivalents Investments Separate account assets Receivables Deferred acquisition costs Restricted and segregated cash Other assets Total assets Liabilities and Shareholders' Equity Liabilities: Future policy benefits and claims Separate account liabilities Customer deposits...

  • Page 62
    ... and provision for loan losses Premium and discount amortization on Available-for-Sale and other securities Changes in operating assets and liabilities: Segregated cash Trading securities and equity method investments in hedge funds, net Future policy benefits and claims, net Receivables Other...

  • Page 63
    ... Statements of Cash Flows Ameriprise Financial, Inc. Years Ended December 31, 2006 Cash Flows from Financing Activities Investment certificates: Payments from certificate owners Interest credited to account values Certificate maturities and cash surrenders Policyholder and contractholder account...

  • Page 64
    ... shareholders - Transfer of pension obligations and assets from American Express Retirement Plan - Treasury shares (11,395,306) Share-based compensation plans 2,911,183 Balances at December 31, 2006 See Notes to Consolidated Financial Statements. 62 Ameriprise Financial, Inc. 2006 Annual Report 241...

  • Page 65
    ... tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. Revenues The Company generates revenue from a wide range of investment and insurance products. Principal sources of revenue Ameriprise Financial, Inc. 2006 Annual Report...

  • Page 66
    ... proprietary mutual funds, separate account and wrap account assets, as well as fees from structured investments and employee benefit plan and institutional investment management and administration services. The Company's management and risk fees are generally computed as a contractual rate applied...

  • Page 67
    ... used to project client asset value growth rates, and assumptions about surrenders, withdrawals and deposits comprise projected persistency rates. Management must also make assumptions to project maintenance expenses associated with servicing the Company's annuity and insurance businesses during the...

  • Page 68
    ... to the sale of auto and home insurance products are capitalized and generally amortized over the life of the policy. the issuer's current and prospective financial condition, as well as the Company's ability and intent to hold until recovery. Fair value is generally based on quoted market prices...

  • Page 69
    ... Liabilities Separate account assets and liabilities are primarily funds held for the exclusive benefit of variable annuity and variable life insurance contractholders. The Company receives investment management fees, mortality and expense risk fees, guarantee fees and cost of insurance charges from...

  • Page 70
    ... or the carrying amount exceeds the fair value of the intangible asset. Deferred Sales Inducement Costs DSIC consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental...

  • Page 71
    ... 31, 2006, depending on year of issue, with an average rate of approximately 5.9%. Life, Disability Income and Long Term Care Insurance Future policy benefits and claims related to life, disability income and long term care insurance include liabilities for fixed account values on fixed and variable...

  • Page 72
    ...who hold money market, savings, checking accounts and certificates of deposit with Ameriprise Bank, FSB. Brokerage customer deposits are amounts payable to brokerage customers related to credit balances and other customer funds pending completion of securities transactions. The Company pays interest...

  • Page 73
    ... FAS 124-1 on the Company's consolidated results of operations and financial condition was not material. In September 2005, the American Institute of Certified Public Accountants ("AICPA") issued Statement of Position ("SOP") 05-1, "Accounting by Insurance Enterprises for Deferred Acquisition Costs...

  • Page 74
    ...of its travel insurance and card related business offered to American Express customers to an American Express subsidiary in return for an arm's length ceding fee. As of September 30, 2005, the Company entered into an agreement to sell the AMEX Assurance legal entity to American Express on or before...

  • Page 75
    ... at fair value. Separately, on October 23, 2006, the Company purchased $33 million of secured loans from American Express Credit Corporation for cash consideration. These loans were made to the Company's customers and are secured by the customers' investment assets and/or insurance policies and will...

  • Page 76
    ... in the value of the related assets will be absorbed by the third party investors. During the years ended December 31, 2005 and 2004, the Company had consolidated secured loan trusts ("SLTs") which provided returns to investors primarily based on the performance of an underlying portfolio of high...

  • Page 77
    ...Casualty Insurance Company ("IDS Property Casualty"), a subsidiary of the Company, and American Express utilize those licenses to offer their products in exchange for a ceding fee. AMEX Assurance entered into separate reinsurance agreements with IDS Property Casualty and American Express to transfer...

  • Page 78
    ...' equity. The following table provides information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position: December 31, 2006 Less than 12 months Description of Securities Fair Value...

  • Page 79
    ... consisting of adjustments in asset and liability balances, such as DAC, DSIC and annuity liabilities to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates. Ameriprise Financial, Inc. 2006 Annual Report 77

  • Page 80
    ... For the years ended December 31, 2006, 2005 and 2004, the Company recognized interest income related to impaired commercial mortgage loans on real estate of nil, nil and $1 million, respectively. The expected payments on mortgage and other asset-backed securities and structured investments may not...

  • Page 81
    ... funds and other hedge funds managed by third parties. Net gains related to trading securities and equity method investments in hedge funds for the years ended December 31, 2006, 2005 and 2004 were $41 million, $27 million and $50 million, respectively. Ameriprise Financial, Inc. 2006 Annual Report...

  • Page 82
    ... lives. The aggregate amortization expense for these intangible assets during the years ended December 31, 2006, 2005 and 2004 was $20 million, $28 million and $29 million, respectively. These assets have a weighted-average useful life of 12 years. 80 Ameriprise Financial, Inc. 2006 Annual Report

  • Page 83
    ... reserve Variable annuities fixed sub-accounts GMWB variable annuity guarantees Other variable annuity guarantees Total annuities VUL/UL insurance contract reserves Other life, disability income and long term care insurance Auto and home reserves Policy claims and other policyholders' funds...

  • Page 84
    ... accounts where the assets are held for the exclusive benefit of those contractholders. The Company also offers term and whole life insurance as well as disability products. The Company no longer offers long term care products but has in-force policies from prior years. Ameriprise Auto & Home...

  • Page 85
    ... annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on equity market performance. Most of the GMWB in-force guarantee that over a period of approximately 14 years the client can withdraw...

  • Page 86
    ... assets transferred to separate accounts for the periods presented. 14. Customer Deposits Customer deposits consisted of the following: December 31, 2006 Fixed rate certificates Stock market based certificates Stock market embedded derivative reserve Certificates marketed through American Express...

  • Page 87
    ... 31, 2006 and 2005, there were no outstanding derivatives to hedge these interest rate risks. Certain investment certificate products have returns tied to the performance of equity markets. The Company guarantees the principal for purchasers who hold the certificate for the full 52-week term and...

  • Page 88
    ... the mutual funds or other clients that the Company provides advisory services to, pay fees to Davis for its services. In the ordinary course of business, Davis pays fees to the Company for distribution services of Davis' products to the Company's clients. 86 Ameriprise Financial, Inc. 2006 Annual...

  • Page 89
    ... Ameriprise Financial 2005 Incentive Compensation Plan. All American Express stock options and restricted stock awards held by the Company's employees that vested on or before December 31, 2005 remained American Express stock options or restricted stock awards. Cash payments for income taxes in 2006...

  • Page 90
    ...date fair value for options granted during 2006 and 2005 was $12.08 and $9.61, respectively. The weighted average grant date fair value of American Express options granted to the Company's employees in 2005 and 2004 was $12.59 and $13.27, respectively, using a Black-Scholes option-pricing model with...

  • Page 91
    ... for asset managers. The Company has five broker-dealer subsidiaries, American Enterprise Investment Services ("AEIS"), Ameriprise Financial Services, Inc. ("AMPF"), Securities America, Inc. ("SAI"), RiverSource Life and RiverSource Distributors, Inc. ("RSD"). The introducing broker-dealers, AMPF...

  • Page 92
    ... Investment certificate reserves Debt Financial Assets Assets for which carrying values approximate fair values include cash and cash equivalents, restricted and segregated cash, consumer banking loans, brokerage margin loans, Available-for-Sale securities, trading securities, separate account...

  • Page 93
    ... will recognize changes in the funded statuses in the year in which the changes occur through other comprehensive income. Effective December 31, 2008, the Company will measure plan assets and benefit obligations as of the date of the balance sheet. Ameriprise Financial, Inc. 2006 Annual Report 91

  • Page 94
    ... plans: 2006 Benefit obligation, October 1 of prior year Service cost Interest cost Benefits paid Actuarial (gain) loss Settlements Foreign currency rate changes Benefit obligation at September 30 $ 325 38 19 (7) (5) (18) 4 $ 356 2006 Fair value of plan assets, October 1 prior year Actual return...

  • Page 95
    ... were as follows: 2006 Discount rates Rates of increase in compensation levels Expected long-term rates of return on assets (1) Other Postretirement Benefits The Company sponsors defined benefit postretirement plans that provide health care and life insurance to retired U.S. employees. Net periodic...

  • Page 96
    ... Ameriprise Financial Stock Fund, which invests primarily in Ameriprise Financial's common stock, and can be redirected at any time into other 401(k) Plan investment options. On an annual basis, employees may receive a discretionary profit sharing contribution based on the performance of the Company...

  • Page 97
    ... payments associated with debt issuances and on investment certificates which reset at shorter intervals than the average maturity of the investment portfolio. Additionally, the Company uses interest rate swaptions to hedge the risk of increasing interest rates on forecasted fixed premium product...

  • Page 98
    ...credited to account values as it relates to annuity and investment certificate products with returns tied to the performance of equity markets. The changes in fair values of the GMWB and GMAB embedded derivatives are reflected in benefits, claims, losses and settlement expenses. At December 31, 2006...

  • Page 99
    ... American Express consolidated income tax return for the year ended December 31, 2005. Additionally, the Company's life insurance subsidiaries will not be 2006 Deferred income tax assets: Liabilities for future policy benefits and claims Investment impairments and write-downs Deferred compensation...

  • Page 100
    ... Company's life and annuity products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2006, these guarantees range up to 5%. To the extent the yield on the Company's invested asset portfolio declines below its target spread plus the minimum guarantee, the Company...

  • Page 101
    ...'s mutual funds, annuities, insurance products and brokerage services; non-cash compensation paid to the Company's financial advisors; supervision of the Company's financial advisors; operational and data privacy issues relating to the theft of a laptop computer containing certain client information...

  • Page 102
    ... but receive nonforfeitable dividends. Potentially dilutive securities include nonqualified stock options and other share-based awards. The Company had no dilutive common shares outstanding for the year ended December 31, 2004 because all share-based 100 Ameriprise Financial, Inc. 2006 Annual Report

  • Page 103
    ... clients address identified financial objectives related to asset accumulation and income management. Products and services in this segment are related to asset management, brokerage and banking, and include mutual funds, wrap accounts, variable and fixed annuities, brokerage accounts and investment...

  • Page 104
    ... change Income from discontinued operations, net of tax Cumulative effect of accounting change, net of tax Net income (1) Represents the amortization expense for deferred acquisition costs, deferred sales inducement costs and intangible assets. 102 Ameriprise Financial, Inc. 2006 Annual Report

  • Page 105
    ... due to dilutive shares. The travel insurance and card related business of the Company's AMEX Assurance subsidiary was ceded to American Express effective July 1, 2005. The quarterly period ended September 30, 2005 reflects the impact of this ceding. The quarterly periods of 2006 and the fourth...

  • Page 106
    ...325 December 31, - 334 - 377 2006 Balance Sheet Data: Investments Separate account assets Total assets(6) Future policy benefits and claims Separate account liabilities Customer deposits Debt Payable to American Express Total liabilities(7) Shareholders' equity (1) (4) 2005 (4) 2004(2)(4) (in...

  • Page 107
    ...marketing affiliates such as Costco Wholesale Corporation, Delta Loyalty Management Services, Inc. and Ford Motor Credit Company. The Company sells these products through its auto and home subsidiary, IDS Property Casualty (doing business as Ameriprise Auto & Home Insurance). Branded Advisor Clients...

  • Page 108
    ... trading in our common shares began on the New York Stock Exchange) and tracks it through December 31, 2006. The S&P Financials line-of-business index includes several businesses that are not currently included in our Financial Services Composite Group. We believe the S&P Financials line-of-business...

  • Page 109

  • Page 110
    ..., to our Annual Report on Form 10-K for the year ended December 31, 2006. Stock Exchange Listing New York Stock Exchange (Symbol: AMP) Independent Registered Public Accounting Firm Ernst & Young LLP Suite 1400 220 South 6th Street Minneapolis, MN 55402 Transfer Agent The Bank of New York P. O. Box...

  • Page 111
    ... Financial Planning, Products and Services William F. Truscott President U.S. Asset Management and Chief Investment Officer John R. Woerner Senior Vice President Strategic Planning and Business Development Board of Directors James M. Cracchiolo Chairman and Chief Executive Officer Ameriprise...

  • Page 112
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