Ameriprise 2008 Annual Report Download - page 94

payment of dividends by many of our subsidiaries is restricted and certain of our subsidiaries are subject to regulatory capital
requirements.
Actual capital and regulatory capital requirements for our wholly owned subsidiaries subject to regulatory capital requirements
were as follows:
December 31,
Actual Capital Regulatory Capital Requirements
2008 2007 2008 2007
(in millions)
RiverSource Life(1)(2) $ 2,722 $ 3,017 $ 551 $ 442
RiverSource Life of NY(1)(2) 229 288 58 34
IDS Property Casualty(1)(3) 436 424 124 117
Ameriprise Insurance Company(1)(3) 47 49 2 2
ACC(4)(5) 243 210 264 201
Threadneedle(6) 227 232 140 149
Ameriprise Bank, FSB(7) 113 161 123 127
AFSI(3)(4) 132 102 # #
Ameriprise Captive Insurance Company 20 16 9 7
Ameriprise Trust Company(3) 35 60 28 36
AEIS(3)(4) 74 56 4 5
Securities America, Inc.(3)(4) 17 13 # #
RiverSource Distributors, Inc.(3)(4) 41 30 # #
RiverSource Fund Distributors, Inc.(3)(4) 7— 1—
RiverSource Services, Inc.(3)(4) 1— #—
Ameriprise Advisor Services, Inc.(3)(4) 22 — 5 —
# Amounts are less than $1 million.
(1) Actual capital is determined on a statutory basis.
(2) Regulatory capital requirement is based on the statutory risk-based capital filing.
(3) Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of December 31, 2008 and 2007.
(4) Actual capital is determined on an adjusted GAAP basis.
(5) ACC is required to hold capital in compliance with the Minnesota Department of Commerce and SEC capital requirements. As of
December 31, 2008, ACC’s capital dropped to 4.61% and 4.97% per the Minnesota Department of Commerce and SEC capital
requirements, respectively. Ameriprise Financial promptly provided additional capital to ACC in January 2009 to bring capital back above
the 5% requirement. Ameriprise Financial and ACC entered into a Capital Support Agreement on March 2, 2009, pursuant to which
Ameriprise Financial agrees to commit such capital to ACC as is necessary to satisfy applicable minimum capital requirements, up to a
maximum commitment of $115 million.
(6) Actual capital and regulatory capital requirements are determined in accordance with U.K. regulatory legislation. The actual capital and
the regulatory capital requirement for December 31, 2008 represent management’s preliminary internal assessment of the risk based
requirement specified by FSA regulations. The actual capital and regulatory capital requirement for December 31, 2007 represent
expense based FSA requirements in force at that time.
(7) Ameriprise Bank is required to hold capital in compliance with the Federal Deposit Insurance Corporation (FDIC) policy regarding de novo
depository institutions, which requires a Tier 1 (core) capital ratio of not less than 8% during its first three years of operations. As of
December 31, 2008, Ameriprise Bank’s Tier 1 core capital dropped to 7.36%. Ameriprise Financial promptly provided additional capital
to Ameriprise Bank in January 2009 to bring the Tier 1 core capital back above the 8% de novo requirement.
In addition to the particular regulations restricting dividend payments and establishing subsidiary capitalization requirements,
we take into account the overall health of the business, capital levels and risk management considerations in determining a
dividend strategy for payments to our company from our subsidiaries, and in deciding to use cash to make capital
contributions to our subsidiaries.
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