Ameriprise 2007 Annual Report Download

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Table of contents

  • Page 1

  • Page 2
    ... Financial Information* Adjusted earnings Adjusted earnings per diluted share Adjusted return on equity Weighted average common shares outstanding-diluted Cash dividends paid per common share Owned, managed and administered assets (billions) Net revenue per advisor (thousands) Life insurance inforce...

  • Page 3
    Adjusted Earnings Per Diluted Share 2005 2006 2007 Left to right: Gloria Vallejo, Interactive Marketing; Jake Dunlap, Field Leader, Pacific Northwest; Paul Stocking, RiverSource Investments (Equities) Ameriprise Financial 2007 Annual Report 1

  • Page 4
    ... our strategy, and it's working. In 2007, we delivered another strong year despite increasingly challenging market conditions." When Ameriprise Financial became an independent public company in October 2005, we were focused on unleashing our potential. All of us-my executive team, our advisors and...

  • Page 5
    ... and CEO management. We remain committed to our conservative approach and believe it will continue to serve us well across ongoing market cycles. Focused on growth Ameriprise Financial serves 2.8 million clients, and more people come to Ameriprise for financial planning than any other company. We...

  • Page 6
    ...navigate changing market conditions and help clients achieve their short- and long-term goals. Solutions such as Active Portfolios s® investments, as well as accumulation and withdrawal benefits in RiverSource e® variable annuities, have received an enthusiastic reception from financial advisors...

  • Page 7
    ... largest advisor force in the U.S.2 Largest mutual fund advisory program in assets3 Capabilities: financial planning, wealth management, brokerage, banking and trust Asset Management $287 billion in managed assets U.S./International balance Retail capabilities: mutual funds, separate accounts and...

  • Page 8
    ... long-term client relationship focus and balance sheet strength helped us effectively weather these challenges." In fact, Active Portfolios s investments has been one of our best new product launches, amassing approximately $2.9 billion in assets since it opened in February 2007. This rapid growth...

  • Page 9
    ... us at Ameriprise Financial understand that we work for our shareholders, and we are constantly mindful of the imperative to deliver shareholder value. We are disciplined in our growth and focused on returning capital to you. In 2007 alone, we bought back 15.9 million shares of our common stock for...

  • Page 10
    ...research reinforced the role advisors can play in opening family dialogue. 1. SRI Consulting Business Intelligence 2. Based on the number of financial plans annually disclosed in Form ADV, Part 1A, Item 5, available at adviser.sec.gov as of Dec. 31, 2006 8 Ameriprise Financial 2007 Annual Report

  • Page 11
    Mass Afï¬,uent and Afï¬,uent Client Asset Growth Indexed to Year-End 2004 2005 2006 Left to right: Kevin Palmer, Finance; Steve Tizzano, RiverSource Insurance; Patti Naas, Human Resources 2007 Ameriprise Financial 2007 Annual Report 9

  • Page 12
    ... between their business goals and our advertising messages. "With the Ameriprise Financial brand, people are increasingly thinking of our company as a household name-one that's recognizable and identified with an advice-based client experience. As advisors, we bring the brand to life every day and...

  • Page 13
    ... Brand Awareness 2005 2006 2007 Left to right: Deb Chagnon, Corporate Communications and Community Relations; Susan Johnson, Marketing Field Implementation, Southeast and Mid-America; Randy Woolley, CRPC,® Advanced Financial Advisor, Pennsylvania Ameriprise Financial 2007 Annual Report 11

  • Page 14
    ... position and goals, and develop close, long-lasting relationships. For the company, financial planning clients are more satisfied, have more assets at the firm and generate greater profitability. *Certified Financial Planner Board of Standards, Inc. 12 Ameriprise Financial 2007 Annual Report

  • Page 15
    Financial Planning (Branded Financial Plan Net Cash Sales) 2005 2006 2007 Left to right: Adam Buttress, Service Delivery and Technology; Kris Petersen, Financial Planning; Rockell Metcalf, Legal Counsel Ameriprise Financial 2007 Annual Report 13

  • Page 16
    ... to those who see their work-helping clients plan for their dreams- as more than a job. With three main platforms-employee, franchisee and independent-we offer advisors a choice in how to best build their practices. Over time, we plan to grow our advisor force both organically and by attracting...

  • Page 17
    ..., Compliance; Siddharth Gandhi, Strategy and Business Development; Ginger Ewing, Senior Financial Advisor, Minnesota *Net revenue per financial advisor is calculated as the Advice & Wealth Management segment net revenue divided by the number of advisors. Ameriprise Financial 2007 Annual Report 15

  • Page 18
    ...2005 2006 2007 RiverSource Funds Ending Assets $ in billions $100 Threadneedle delivered its strongest year ever for equity investment performance, with 80 percent of portfolios above the median of their respective U.K. peer groups at year end. In addition to generating strong organic growth and...

  • Page 19
    Owned, Managed and Administered Assets 2005 2006 2007 Left to right: Michael Seymour, Threadneedle; Nancy Seely-Butler, CFP,® Senior Financial Advisor, Connecticut; Tiffany Glidden-Rude, RiverSource Distributors Ameriprise Financial 2007 Annual Report 17

  • Page 20
    ... have multiple choices for funding their retirement, from market-based investment products to the power of guaranteed income for life that annuities can provide, and our advisors are committed to helping clients select options best suited to manage risk. 18 Ameriprise Financial 2007 Annual Report

  • Page 21
    Assets Under Management in Advice-Built Solutions 2005 2006 2007 Left to right: Peg Sibbet, RiverSource Investments (Fixed Income); Ray Carothers, CFP,® Financial Advisor, Georgia; Matt Hudnut, Brokerage and Managed Products Ameriprise Financial 2007 Annual Report 19

  • Page 22
    ... long-term shareholder value is a top priority, and we are delivering that by meeting our on-average, over-time financial targets. In 2007 we achieved net revenue growth of 8 percent, adjusted earnings per diluted share growth of 16 percent and adjusted return on equity of 12.6 percent. Investment...

  • Page 23
    Adjusted Return on Equity 2005 2006 2007 Left to right: Pete Gallus, RiverSource Investments (Operations); Jody Johnson, CFP,® Field Leader, Northeast; Gumer Alvero, RiverSource Annuities Ameriprise Financial 2007 Annual Report 21

  • Page 24
    ... Cracchiolo, Chairman and CEO Award-winning service: We secured four DALBAR service awards in 2007. We were recognized for producing positive, thorough and consistent client service in Annuities, Insurance, Mutual Funds and Managed Products/ Brokerage. 22 Ameriprise Financial 2007 Annual Report

  • Page 25
    Ameriprise Financial 2007 Annual Report 23

  • Page 26
    ... Financial Services, Inc. RiverSource insurance and annuity products are issued by RiverSource Life Insurance Company and in New York, by RiverSource Life Insurance Co. of New York, Albany, New York, and distributed by RiverSource Distributors, Inc. Ameriprise Auto & Home Insurance issues auto, home...

  • Page 27
    ... Statements of Shareholders' Equity Notes to Consolidated Financial Statements Consolidated Five-Year Summary of Selected Financial Data Glossary of Selected Terminology Performance Graph General Information 53 54 55 56 57 58 59 61 62 103 105 107 108 Ameriprise Financial 2007 Annual Report...

  • Page 28
    ..., continued leadership in financial planning, gains in advisor productivity, growth in our assets, and our strong corporate foundation. The number of our mass affluent and affluent client groups increased 5% since year end last year. While our franchisee 26 Ameriprise Financial 2007 Annual Report

  • Page 29
    ..., home equity lines of credit, investment secured loans and lines of credit and unsecured loans and lines of credit. We also offer stand-alone checking, savings and money market accounts and certificates of deposit. We believe these products play a key role in our Advice & Wealth Management business...

  • Page 30
    ... 31, 2007. Deferred Acquisition Costs For our annuity and life, disability income and long term care insurance products, our DAC balances at any reporting date are supported by projections that show management expects there to be adequate premiums or estimated gross profits after that date to...

  • Page 31
    ... margins, while assumptions about rates credited to policyholder accounts and equity market performance are the primary factors used to project client asset value growth rates, and assumptions about surrenders, withdrawals and deposits comprise projected persistency rates. Management must also make...

  • Page 32
    ... Statements. Sources of Revenues and Expenses We earn revenues from fees received in connection with mutual funds, wrap accounts, assets managed for institutions and separate accounts related to our variable annuity and variable life insurance products. Our protection and annuity products generate...

  • Page 33
    ... property-casualty products are sold direct, primarily through affinity relationships. We issue insurance policies through our life insurance subsidiaries and IDS Property Casualty and its subsidiary, Ameriprise Insurance Company. The primary sources of revenues for this segment are premiums, fees...

  • Page 34
    ... services such as client assets invested in other companies' products that we offer outside of our wrap accounts. These assets include those held in clients' brokerage accounts. We do not exercise management discretion over these assets and do not earn a management fee. These assets are not reported...

  • Page 35
    ... for RiverSource mutual fund assets included in wrap account assets and RiverSource assets sub-advised by Threadneedle. Expenses Distribution expenses 2,057 Interest credited to fixed accounts 850 Benefits, claims, losses and settlement expenses 1,274 Amortization of deferred acquisition...

  • Page 36
    ... credited expenses for equity indexed annuities and banking and deposit interest expense for stock market certificates. Premiums in 2007 decreased $7 million, or 1%, to $1.1 billion. This decrease was attributable to a decline in premiums related to immediate annuities with life contingencies...

  • Page 37
    ... ("DRD") related to separate account assets held in connection with variable contracts of life insurance companies and has added the project to the 2007-2008 Priority Guidance Plan. Revenue Ruling 2007-61 suspended a revenue ruling issued in August 2007 that purported to change accepted industry and...

  • Page 38
    ... full year of activity from Ameriprise Bank was offset by lower average account balances in certificate products and the impact of hedges for stock market certificates. Banking and deposit interest expense decreased $10 million as decreases in certificate sales and balances and the impact of options...

  • Page 39
    ... Annuities segment for the years ended December 31, 2007 and 2006: Years Ended December 31, 2007 2006 Change (in millions, except percentages) Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest...

  • Page 40
    ... of our Corporate & Other segment for the years ended December 31, 2007 and 2006: Years Ended December 31, 2007 2006 Change (in millions, except percentages) Revenues Management and financial advice fees Net investment income Other revenues Total revenues Banking and deposit interest expense...

  • Page 41
    .... Years Ended December 31, 2006 Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts Benefits, claims...

  • Page 42
    ... inflows in wrap accounts and strong growth in sales of direct investments as well as market appreciation. The growth in brokerage revenues was partially offset by a decline in distribution fees related to RiverSource mutual funds of $15 million largely due to lower mutual fund asset balances. This...

  • Page 43
    ...which $100 million was related to the settlement of a consolidated securities class action lawsuit. We recorded $15 million of severance and other costs related to the sale of our defined contribution recordkeeping business and $25 million of other severance costs primarily related to our technology...

  • Page 44
    ... of our Asset Management segment for the years ended December 31, 2006 and 2005: Years Ended December 31, 2006 Revenues Management and financial advice fees Distribution fees Net investment income Other revenues Total revenues Banking and deposit interest expense Total net revenues 2005 Change (in...

  • Page 45
    ...AMEX Assurance 2005(1)(2) Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts Benefits, claims, losses...

  • Page 46
    ... generated from higher levels of VUL variable account values in 2006. Total life insurance inforce increased 9% in 2006 compared to 2005. Additionally, the increase in net investment income is a result of the positive impact of higher reserves associated with the growth in our auto and home products...

  • Page 47
    ... RiverSource Life Insurance Co. 288 of New York(1)(2) IDS Property Casualty 424 Insurance Company(1)(3) Ameriprise Insurance 49 Company(1)(3) Ameriprise Certificate 210 Company(4) Threadneedle Asset Management Holdings 232 Limited(5) 143 Ameriprise Bank, FSB(6) Ameriprise Financial 102 Services...

  • Page 48
    ... (in millions) 2005 Cash dividends paid/ (contributions made), net RiverSource Life Ameriprise Bank AEIS ACC RiverSource Investments, LLC RiverSource Service Corporation Threadneedle Ameriprise Trust Company Securities America Financial Corporation AFSI IDS Property Casualty Other Total Dividend...

  • Page 49
    ... certificate, fixed annuity and universal life products reflected in financing activities. Net cash provided by investing activities for the year ended December 31, 2007 was $4.5 billion compared to $3.5 billion for the year ended December 31, 2006, a cash flow improvement of $1.0 billion. Purchases...

  • Page 50
    ... and premium payment assumptions. Actual payment obligations may differ if experience varies from these assumptions. Separate account liabilities have been excluded as associated contractual obligations would be met by separate account assets. The payments due by year are based on contractual term...

  • Page 51
    ... of Market Risk Asset-based management and distribution fees Variable annuity riders Fixed annuities, fixed portion of variable annuities and fixed insurance products Flexible savings and other fixed rate certificates Total Interest Rate Equity Price (in millions) Interest Rate Risk-Asset-Based...

  • Page 52
    ...specific conditions regardless of the performance of the investment assets. For this reason, when equity markets decline, the returns from the separate account assets coupled with guaranteed benefit fees from annuity holders may not be sufficient to fund expected payouts. In that case, reserves must...

  • Page 53
    ... from the sale of equity indexed annuities are invested in fixed income securities with the return on those investments intended to fund the 3% guarantee. We earn income from the difference between the return earned on invested assets and the 3% guarantee rate credited to customer accounts. The...

  • Page 54
    ... 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 customer deposits on our Consolidated Balance Sheets. Of the $6.2 billion in customer deposits at December 31, 2007...

  • Page 55
    ... of legal claims threatened or initiated by clients, other persons and regulators, and developments in regulation and legislation; • our investment management performance and consumer acceptance of our products; • effects of competition in the financial services industry and changes in product...

  • Page 56
    ... effective. Ernst & Young LLP, the Company's independent registered public accounting firm, has issued an audit report appearing on the following page on the effectiveness of the Company's internal control over financial reporting as of December 31, 2007. 54 Ameriprise Financial 2007 Annual Report

  • Page 57
    ... Public Company Accounting Oversight Board (United States), the 2007 consolidated financial statements of Ameriprise Financial, Inc., and our report dated February 26, 2008, expressed an unqualified opinion thereon. Minneapolis, Minnesota February 26, 2008 Ameriprise Financial 2007 Annual Report...

  • Page 58
    ...shareholders' equity and cash flows for each of the three years in the period ended December 31, 2007. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits...

  • Page 59
    ... except per share amounts) Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts Benefits, claims, losses...

  • Page 60
    ...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 Debt Accounts payable and...

  • Page 61
    ... 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 Brokerage deposits Accounts...

  • Page 62
    ...Statements of Cash Flows (continued) Ameriprise Financial, Inc. 2007 Years Ended December 31, 2006 2005 (in millions) Cash Flows from Financing Activities Investment certificates and banking time deposits: Proceeds from additions Maturities, withdrawals and cash surrenders Change in other banking...

  • Page 63
    ... derivatives losses Change in defined benefit plans Foreign currency translation adjustment Total comprehensive income Dividends paid to shareholders Treasury shares Share-based compensation plans Other, net Balances at December 31, 2007 See Notes to Consolidated Financial Statements. Common Shares...

  • Page 64
    ... Statement Reclassifications • The Company reclassified the portion of 12b-1 fees identified as service fees on proprietary funds and marketing support type payments received from non-proprietary fund families for variable annuity and variable universal life products from management and financial...

  • Page 65
    ... Reported Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Compensation and benefits Distribution expenses Interest credited to fixed accounts Benefits, claims...

  • Page 66
    ...for annuity transfers Reclassification for brokerage accounts Reclassification for policy loans Reclassification of certain trading securities to cash Reclassification for investment certificates accrued interest Other reclassifications Net cash provided by operating activities, as reported Net cash...

  • Page 67
    ... transfer agent, administration and custodial fees earned from providing services to retail mutual funds). Management and financial advice fees also include mortality and expense risk fees earned on separate account assets. Prior to the sale of the Company's defined recordkeeping business in...

  • Page 68
    ... Company's wrap accounts, as well as surrender charges on fixed and variable universal life insurance and annuities. Net Investment Income Net investment income primarily includes interest income on fixed maturity securities classified as Available-for-Sale, commercial mortgage loans, policy loans...

  • Page 69
    ... margins, while assumptions about rates credited to policyholder accounts and equity market performance are the primary factors used to project client asset value growth rates, and assumptions about surrenders, withdrawals and deposits comprise projected persistency rates. Management must also make...

  • Page 70
    ..., consumer banking loans, accrued investment income, brokerage customer receivables, premiums due, securities borrowed and other receivables. Reinsurance The Company reinsures a portion of the insurance risks associated with its life, disability income and long term care insurance products through...

  • Page 71
    ...policy forms. The Company also retains all risk of accidental death benefit claims and substantially all risk associated with waiver of premium provisions. For the years ended December 31, 2007, 2006 and 2005, net premiums earned on traditional life and health insurance and life contingent immediate...

  • Page 72
    ...and claims, whereas the fair value of stock market investment certificate embedded derivatives is included in customer deposits. The changes in fair value of the equity indexed annuity and investment certificate embedded derivatives are reflected in interest credited to fixed accounts and in banking...

  • Page 73
    ... policy issue grading to 5.0% over five years. Anticipated discount rates for long term care vary by plan and were 5.4% at December 31, 2007 grading up to 6.8% or 9.4% over 40 years. Where applicable, benefit amounts expected to be recoverable from other insurers who share in the risk are separately...

  • Page 74
    ... amounts payable to banking customers 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...

  • Page 75
    ...associated with an insurance or annuity contract that is significantly modified or is internally replaced with another contract. Prior to adoption, the Company accounted for many of these transactions as contract continuations and continued amortizing existing Ameriprise Financial 2007 Annual Report...

  • Page 76
    ... 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 September 30, 2007 for a fixed...

  • Page 77
    ... 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 be serviced by Ameriprise Bank. The Company recorded the loans purchased at...

  • Page 78
    ... 53 46 30 $31,208 Fair Value $16,831 12,330 1,070 378 135 60 46 30 $30,880 (in millions) The deconsolidated CDO included corporate debt securities with a fair value of $160 million at December 31, 2006. 76 Ameriprise Financial 2007 Annual Report

  • Page 79
    ...31, 2007 and 2006, which were rated by the Company's internal analysts using criteria similar to Moody's and S&P. Ratings on investment grade securities are presented using S&P's convention and, if the two agencies' ratings differ, the lower rating was used. A summary of fixed maturity securities by...

  • Page 80
    ..., first lien collateral. Holdings include both floating rate and short-duration, fixed securities. The Company has no other structured or hedge fund investments with exposure to subprime residential mortgages. The change in net unrealized securities gains (losses) in other comprehensive income...

  • Page 81
    ...the Company did not recognize any interest income related to impaired commercial mortgage loans. The balances of and changes in the allowance for loan losses were as follows: Years Ended December 31, 2007 The expected payments on mortgage and other asset-backed securities and structured investments...

  • Page 82
    ... gains related to trading securities and equity method investments in hedge funds for the years ended December 31, 2007, 2006 and 2005 were $3 million, $41 million and $27 million, respectively. 10. Deferred Acquisition Costs and Deferred Sales Inducement Costs The balances of and changes in DAC...

  • Page 83
    ... expense as of December 31, 2007, for the next five years was as follows: (in millions) 2008 2009 2010 2011 2012 $26 25 24 19 19 As of December 31, 2007 and 2006, the Company did not have identifiable intangible assets with indefinite useful lives. Ameriprise Financial 2007 Annual Report 81

  • Page 84
    ...benefits variable annuity guarantees Other variable annuity guarantees Total annuities Variable universal life ("VUL")/universal life ("UL") insurance Other life, disability income and long term care insurance Auto, home and other insurance Policy claims and other policyholders' funds Total Separate...

  • Page 85
    ...separate 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 inforce policies from prior years. Ameriprise Auto & Home...

  • Page 86
    ... death benefit less total contract value for GMDB, amount of gross up for GGU and accumulated guaranteed minimum benefit base less total contract value for GMIB and assumes the actuarially remote scenario that all claims become payable on the same day. 84 Ameriprise Financial 2007 Annual Report

  • Page 87
    ...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 purchasers may participate in increases in the stock market based on the S&P 500 Index, up...

  • Page 88
    ...Compensation Plan (the "2005 ICP") and the Deferred Equity Program for Independent Financial Advisors ("P2 Deferral Plan"). In accordance with the Employee Benefits Agreement ("EBA") entered into between the Company and American Express as part of the Distribution, all American Express stock options...

  • Page 89
    ... years. Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan The 2005 ICP, which was amended and approved by shareholders on April 25, 2007, provides for the grant of cash and equity incentive awards to directors, employees and independent contractors, including stock options...

  • Page 90
    ... to 2.5 million shares of common stock. The number of units awarded is based on the performance measures, deferral percentage and the market value of Ameriprise Financial common stock on the deferral date as defined by the plan. As independent financial advisors are not employees of the Company, the...

  • Page 91
    ..., under its Capital Adequacy Requirements for asset managers. The Company has four broker-dealer subsidiaries, American Enterprise Investment Services ("AEIS"), Ameriprise Financial Services, Inc. ("AFSI"), Securities America, Inc. ("SAI") and RiverSource Distributors, Inc. ("RSD"). The broker...

  • Page 92
    ... cash and cash equivalents, restricted and segregated cash, consumer banking loans, brokerage margin loans, Available-for-Sale securities, trading securities, separate account assets, derivative assets and certain other assets. Generally these assets are either short-term in duration, variable rate...

  • Page 93
    ... cost for pension plans were as follows: 2007 $275 50 16 (7) (25) - $309 $244 27 26 (7) (18) 3 $275 Discount rates Rates of increase in compensation levels Expected long term rates of return on assets 5.7% 4.1 8.2 2006 2005 5.5% 5.7% 4.4 4.4 8.2 8.2 Ameriprise Financial 2007 Annual Report 91

  • Page 94
    .... The asset classes typically include domestic and foreign equities, emerging market equities, domestic and foreign investment grade and high-yield bonds and domestic real estate. The Company's retirement plans expect to make benefit payments to retirees as follows: (in millions) Discount rates...

  • Page 95
    ...first pay period following 60 days of service. Employees must be employed on the last working day of the year to receive the Company's variable match contributions. For plan years beginning in 2007, fixed and variable match contributions and stock contributions vest on a five-year graded schedule of...

  • Page 96
    ..., 2007, the remaining payments the Company is scheduled to make for these options total $313 million through December 31, 2022. The Company earns fees from the management of equity securities in variable annuities, variable insurance, its own mutual funds and other managed assets. The amount of fees...

  • Page 97
    ... were as follows: Years Ended December 31, 2007 Deferred income tax assets: Liabilities for future policy benefits and claims $1,212 Investment impairments and write-downs 77 Deferred compensation 185 Unearned revenues 29 Net unrealized losses on Available-for-Sale securities 83 Accrued liabilities...

  • Page 98
    ... ("DRD") related to separate account assets held in connection with variable contracts of life insurance companies and has added the project to the 2007-2008 Priority Guidance Plan. Revenue Ruling 2007-61 suspended a revenue ruling issued in August 2007 that purported to change accepted industry and...

  • Page 99
    ... Company's RiverSource mutual funds, supervisory practices in connection with financial advisors' outside business activities, sales practices associated with the sale of fixed and variable annuities, the suitability of product recommendations made to retail Ameriprise Financial 2007 Annual Report...

  • Page 100
    ... and non-proprietary products and services. The Asset Management segment provides investment management services for the Company's owned assets and client assets, and accordingly charges investment and advisory management fees to the other segments. Earnings per Basic Common Share: Income from...

  • Page 101
    ... Management segment provides financial advice and full service brokerage and banking services, primarily to retail clients, through the Company's financial advisors. The advisors distribute a diversified selection of both proprietary and non-proprietary products to help clients meet their financial...

  • Page 102
    ... Annuities Protection Corporate & Other Total assets $ 8,146 6,661 71,556 20,347 2,520 $109,230 The following is a summary of segment operating results: Year Ended December 31, 2007 Advice & Wealth Management Revenue from external customers Intersegment revenue Total revenues Banking and deposit...

  • Page 103
    ... 2006 and March 31, 2006, respectively. The Company incurred separation costs beginning with the quarterly period ended March 31, 2005, when the American Express Board of Directors announced the Separation. The Company continued to incur separation costs in subsequent quarterly periods which reflect...

  • Page 104
    ... in the Consolidated Statements of Cash Flows. • The Company previously classified transfers to and from the fixed account option within its variable annuity product as an operating activity in the Consolidated Statements of Cash Flows. The Company has reclassified these transfers as a financing...

  • Page 105
    ... period ended December 31, 2007. Certain prior year amounts have been reclassified to conform to the current year's presentation. For the periods preceding our separation from American Express Company ("American Express"), we prepared our Consolidated Financial Statements as if we had been a stand...

  • Page 106
    ... the Ameriprise Financial brand, separating and reestablishing our technology platforms and advisor and employee retention programs. Effective January 1, 2004, we adopted American Institute of Certified Public Accountants Statement of Position 03-1, "Accounting and Reporting by Insurance Enterprises...

  • Page 107
    ...marketing affiliates such as Costco Wholesale Corporation, Delta Loyalty Management Services, Inc. and Ford Motor Credit Company. We sell these products through our auto and home subsidiary, IDS Property Casualty Insurance Company (doing business as Ameriprise Auto & Home Insurance). Cash Sales-Cash...

  • Page 108
    ... of companies, which provide investment management products and services. Wrap Accounts-Wrap accounts enable our clients to purchase other securities such as mutual funds in connection with investment advisory fee-based "wrap account" programs or services. We offer clients the opportunity to select...

  • Page 109
    ... 31, 2007. The indices relate only to stock prices and do not purport to provide a direct comparison to the business or financial performance of the companies included in either index. Comparison of 27-Month Cumulative Total Return* Among Ameriprise Financial, Inc., the S&P 500 Index and the...

  • Page 110
    ... at 243 Ameriprise Financial Center Minneapolis, MN 55474. Stock Exchange Listing New York Stock Exchange (Symbol: AMP) Independent Registered Public Accounting Firm Ernst & Young LLP 220 South 6th Street, Suite 1400 Minneapolis, MN 55402 Transfer Agent Computershare Trust Company, N.A. P.O. Box...

  • Page 111
    ... III Executive Vice President and Chief Marketing Officer Joseph E. Sweeney President Financial Planning, Products and Services William F. Truscott Private Investor Former President Morgan Stanley Investment Management Client Group H. Jay Sarles President U.S. Asset Management, Annuities and...

  • Page 112
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