Ameriprise 2009 Annual Report Download

Download and view the complete annual report

Please find the complete 2009 Ameriprise annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 190

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190

Ameriprise Financial, Inc.
Annual Report
T W O T H O U S A N D N I N E

Table of contents

  • Page 1
    Ameriprise Financial, Inc. Annual Report T wo ThousA nd nIne

  • Page 2
    ... lower fees and reduced client activity from equity market declines, as well as the impact of maintaining a large liquidity pool in a low short-term interest rate environment. In addition, the company's 2008 results included realized net investment losses and other costs related to the credit market...

  • Page 3
    ... financial services industry. The year began with ongoing market declines, extensive government intervention in the financial system and broad-based consumer anxiety, and it ended with improved market conditions and signs of a nascent economic recovery. At Ameriprise Financial, we guided the company...

  • Page 4
    ... portfolio and certain non-cash charges. $200 $265 $100 $40 $0 2007 Owned $32 2008 Managed $37 2009 Administered Our 2009 performance was well received by investors. Ameriprise Financial common stock ended the year at $38.82 per share, up 66 percent for the year. The S&P Financials Index...

  • Page 5
    ... advisor force > #1 mutual fund advisory program in assets > A leading insurance and annuity provider > 2009 Dalbar Service Award Winner (mutual funds, annuities, insurance and managed products/brokerage) Supporting advisors Our advisors are the face of our company, and they define our client...

  • Page 6
    ... include Securities America, our independent broker-dealer subsidiary Meeting clients' evolving needs Serving clients in long-term, comprehensive relationships requires broad and diverse product choice. We offer a range of options necessary to serve the four cornerstones of financial planning: cash...

  • Page 7
    ...moved assets to cash or guaranteed return products. This shift generated strong sales of our fixed annuities, certificates and banking products, and lowered sales of variable annuities and equity mutual funds. In 2009, client cash balances reached record highs, and we sold approximately $3.6 billion...

  • Page 8
    ... of our business model, and we serve retail, institutional and high-net-worth clients through multiple investment operations in U.S. and international markets. This portfolio of businesses provides broad equity and fixed income investment capabilities, a global reach and a significant opportunity to...

  • Page 9
    ... May, we declined the U.S. Treasury's offer of funding assistance. High-quality investment portfolio net after-tax unrealized gains/(losses) as a percent of equity - excluding AOcI (at 12.31) Ameriprise Financial Insurance Peers 4.9% -5.5% -16.4% We ended the year with an excess capital position...

  • Page 10
    ... and volatility increased the company's potential liability related to variable annuities with living benefits, we revamped our product features and pricing to balance client needs and achieve shareholder return targets. We also refined our variable annuity hedging program, which has performed well...

  • Page 11
    ...we can to reward your trust. sincerely, 150 175 AMP stock price performance vs. S&P Financials Index 2009 125 James M. cracchiolo chairman and chief executive Officer 100 75 50 1/09 3/09 6/09 9/09 12/09 Ameriprise Financial, Inc. S&P Financials Index Reflects percentage change in price from 12...

  • Page 12
    ...Inc. Ameriprise Auto & Home Insurance issues auto, home and umbrella insurance underwritten by IDS Property Casualty Insurance Company or, in some states, Ameriprise Insurance Company (AIC), DePere, WI. The Threadneedle group of companies constitutes the Ameriprise Financial international investment...

  • Page 13
    Ameriprise Financial, Inc. 2009 Form 10-K

  • Page 14
    ...) 1099 Ameriprise Financial Center, Minneapolis, Minnesota (Address of principal executive offices) Registrant's telephone number, including area code: (612) 671-3131 Securities registered pursuant to Section 12(b) of the Act: Title of each class Common Stock (par value $.01 per share) Securities...

  • Page 15
    ...160 Certain Relationships and Related Transactions, and Director Independence...161 Item 14. Principal Accountant Fees and Services ...161 PART IV. Item 15. Exhibits and Financial Statement Schedules ...161 Signatures ...162 Condensed Financial Information of Registrant ...F-2 Exhibit Index ...E-1

  • Page 16
    ...segments, including ANNUAL REPORT 2009 1 our U.S. advisor force, long-term U.S. mutual funds, variable annuities and variable universal life insurance. Our multi-platform network of affiliated financial advisors is the primary means by which we develop personal relationships with retail clients. As...

  • Page 17
    ... through our branded advisors (e.g., investment advisory accounts, retail brokerage services and banking products) and products and services that we market directly to consumers (e.g., personal auto and home insurance). We use our RiverSource brand for our U.S. asset management, annuity, and the...

  • Page 18
    ... Corporation J. & W. Seligman & Co. Incorporated RiverSource Fund Distributors, Inc. Ameriprise Financial Services, Inc. American Enterprise Investment Services Inc. Ameriprise Holdings, Inc. RiverSource Life Insurance Company IDS Property Casualty Insurance Company Ameriprise Certificate...

  • Page 19
    ... RiverSource mutual funds and Ameriprise face-amount certificates. Its results of operations are included in our Asset Management segment. > IDS Property Casualty Insurance Company (''IDS Property Casualty'' or ''Ameriprise Auto & Home'') provides personal auto, home and excess liability insurance...

  • Page 20
    ...and life situation and their advisor's particular practice experience, and is not based on or related to actual investment performance. If clients elect to implement their financial plan with our company, we and our affiliated financial advisors generally receive a sales commission and/or sales load

  • Page 21
    ... through which clients may invest in SMAs, mutual funds and exchange traded funds. Our unbranded advisor force offers separate fee based investment advisory account services through Securities America Advisors, Inc., a wholly owned subsidiary of Securities America Financial 6 ANNUAL REPORT 2009

  • Page 22
    ... in home loans/equity line of credit balances, $16 million in investment secured loan balances and $181 million in unsecured balances, net of premiums and discounts, and capitalized lender paid origination fees. Ameriprise Bank's strategy and operations are focused on serving branded advisor clients...

  • Page 23
    ...families of mutual funds, as well as the assets we manage for institutional clients in separately managed accounts, the general and separate accounts of the RiverSource Life companies, the assets of our face-amount certificate company and the investment portfolio of Ameriprise Bank. These investment...

  • Page 24
    ...financial advisor network, as part of Ameriprise institutional 401(k) plans and through third-party financial institutions, and variable product funds, which are available as underlying investment options in variable annuity and variable life products. Mutual funds in the RiverSource family of funds...

  • Page 25
    ... the RiverSource Variable Product funds held in the separate accounts of our RiverSource Life companies, assets held by Ameriprise Certificate Company and the investment portfolio of Ameriprise Bank. Our fixed income team manages the general account assets to produce a consolidated and targeted rate...

  • Page 26
    ... clients such as retirement, pension and profit-sharing plans. We currently serve as investment manager to 37 Ameriprise Trust Company collective funds covering a broad spectrum of investment strategies. We receive ANNUAL REPORT 2009 11 fees for investment management services that are generally...

  • Page 27
    ...Asset Management - Asset Management Offerings - Mutual Fund Families - RiverSource and 12 ANNUAL REPORT 2009 Our Segments - Annuities Our Annuities segment provides RiverSource Life variable and fixed annuity products to retail clients primarily distributed through our affiliated financial advisors...

  • Page 28
    ...'', above) as well as variable portfolio funds of other companies. RiverSource variable annuity products in force offer a fixed account investment option with guaranteed minimum interest crediting rates ranging up to 4% at December 31, 2009. Our Portfolio Navigator asset allocation program is...

  • Page 29
    ... portfolio funds of other companies. RiverSource variable universal life insurance products in force offer a fixed account investment option with guaranteed minimum interest crediting rates ranging from 3.0% to 4.5% at December 31, 2009. For the nine months ended September 30, 2009, RiverSource Life...

  • Page 30
    ... Our Property Casualty companies provide personal auto, home and liability coverage to clients in 43 states and the District of Columbia. Distribution and Marketing Channels We offer the insurance products of our RiverSource Life companies almost exclusively through our branded financial advisors...

  • Page 31
    ... of the rating considers a company's mix of business, market position and depth and experience of management. Information concerning the financial strength ratings for Ameriprise Financial, RiverSource Life and IDS Property Casualty can be found in Part II, Item 7 of this Annual Report on Form 10...

  • Page 32
    ... that manage individual brokerage, mutual fund, insurance and banking client accounts. Over the years we have updated our platform to include new product lines such as brokerage, deposit, credit and products of other companies, wrap accounts and e-commerce capabilities for our financial advisors and...

  • Page 33
    ... the Investment Company Act of 1940, as amended. Ameriprise Certificate Company pays dividends to the parent company and is 18 ANNUAL REPORT 2009 Geographic Presence For years ended December 31, 2009, 2008 and 2007, approximately 85%, 86% and 77%, respectively, of our long-lived assets were located...

  • Page 34
    ... under Minnesota law. It may not accept deposits or make personal or commercial loans. As a provider of products and services to tax-qualified retirement plans and IRAs, certain aspects of our business, including the activities of our trust company, fall within the compliance oversight of the...

  • Page 35
    ... terms, conditions, rates or benefits of an insurance policy. Adoption of any new federal regulation in any of these or other areas could potentially have an adverse effect upon our RiverSource Life companies. The instability and impacted values and liquidity in global financial markets experienced...

  • Page 36
    ...valuation of certain minimum guaranteed benefits contained in some of our variable annuity Securities Exchange Act Reports and Additional Information We maintain an Investor Relations website at ir.ameriprise.com and we make available free of charge our annual, quarterly and current reports and any...

  • Page 37
    ...our products have guaranteed minimum crediting rates. Due to the long-term nature of the liabilities associated with certain of our businesses, such as fixed annuities and guaranteed benefits on variable annuities, sustained declines or stagnancy of low interest rates in long-term interest rates may...

  • Page 38
    ... customers or lenders could develop a negative perception of our long- or short-term financial prospects if we incur large investment losses or if the level of our business activity decreases due to a market downturn. Similarly, our access to funds may be impaired if regulatory authorities or rating...

  • Page 39
    ... companies could be adversely affected by the requirement to pay assessments to the guaranty fund associations. Third-party defaults, bankruptcy filings, legal actions and other events may limit the value of or restrict our access and our clients' access to cash and investments. Capital and credit...

  • Page 40
    ... downturns and corporate malfeasance can increase the number of companies, including those with investment-grade ratings, that default on their debt obligations. Default-related declines in the value of our fixed maturity securities portfolio or consumer credit products could cause our net earnings...

  • Page 41
    ..., service, the quality of investment advice, investment performance, product features, price, perceived financial strength, and claims-paying and credit ratings. Our competitors include broker-dealers, banks, asset managers, insurers and other financial institutions. Many of our businesses face...

  • Page 42
    ... the sales of our mutual funds, annuities, face-amount certificates, banking and insurance products. In addition, our continued success depends to a substantial degree on our ability to attract and retain qualified personnel. The market for financial advisors, registered representatives, management...

  • Page 43
    rates that can be charged on loans outstanding, changes in communication with customers that affect payments, statements and collections of loans, and changes in accounting for the consumer lending business. The majority of our affiliated financial advisors are independent contractors. Legislative ...

  • Page 44
    ...: > reducing new sales of insurance products, annuities and investment products; > adversely affecting our relationships with our affiliated financial advisors and third-party distributors of our products; > materially increasing the number or amount of policy surrenders and withdrawals by contract...

  • Page 45
    ...make greater payments under our life insurance policies and annuity contracts with guaranteed minimum death benefits than we have projected. The risk that our claims experience may differ significantly from our pricing assumptions is particularly significant for our long term care insurance products...

  • Page 46
    ... a charge to increase benefit reserves. For more information regarding DAC, see Part II, Item 7 of this Annual Report on Form 10-K under the heading ''Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies - Deferred Acquisition Costs and...

  • Page 47
    ... investor interest and evolution in the financial markets of increasingly sophisticated products, such as those which incorporate automatic asset re-allocation, long/short trading strategies or multiple portfolios or funds, and business-driven hedging, compliance and other risk management strategies...

  • Page 48
    ...financial condition. Changes in U.S. federal income or estate tax law could make some of our products less attractive to clients. Many of the products we issue or on which our businesses are based (including both insurance products and non-insurance products) enjoy favorable treatment under current...

  • Page 49
    ... the term. Our aggregate annual rent for the Ameriprise Item 3. Legal Proceedings. Owing to conditions then-prevailing in the credit markets and the isolated defaults of unaffiliated structured investment vehicles held in the portfolios of money market funds advised by its RiverSource Investments...

  • Page 50
    ... mutual funds, annuities, equity and fixed income securities, insurance products, brokerage services, financial plans and other advice offerings; supervision of the Company's financial advisors; supervisory practices in connection with financial advisors' outside business activities; sales practices...

  • Page 51
    ... by or on behalf of Ameriprise Financial, Inc. or any ''affiliated purchaser'' (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934) of our common stock during the fourth quarter of 2009: (b) (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs...

  • Page 52
    ... the Ameriprise Financial brand, separating and reestablishing our technology platforms and advisor and employee retention programs. Diluted shares used in this calculation represent basic shares due to the net loss. Using actual diluted shares would result in anti-dilution. 37 ANNUAL REPORT 2009

  • Page 53
    ... the effects they have on the asset management and other asset-based fees we earn, the ''spread'' income generated on our annuities, banking and deposit products and universal life (''UL'') insurance products, the value of deferred acquisition costs (''DAC'') and deferred sales 38 ANNUAL REPORT 2009

  • Page 54
    ..., including our U.S. advisor force, long-term U.S. mutual funds, variable annuities and variable universal life insurance. In the fourth quarter of 2008, we completed the all cash acquisitions of H&R Block Financial Advisors, Inc., subsequently renamed Ameriprise Advisor Services, Inc. (''AASI...

  • Page 55
    ... temporary continue to be carefully monitored by management. Generally, the credit loss component for the non-agency mortgage backed securities is determined as the amount the amortized cost basis exceeds the present value of the projected cash flows expected to be collected. 40 ANNUAL REPORT 2009

  • Page 56
    ...discount rate used to determine the present value of the expected cash flows. Deferred Acquisition Costs and Deferred Sales Inducement Costs For our annuity and life, disability income and long term care insurance products, our DAC and DSIC balances at any reporting date are supported by projections...

  • Page 57
    ... claims and other policyholders' funds related to fixed annuities and variable annuity guarantees include liabilities for fixed account values on fixed and variable deferred annuities, guaranteed benefits associated with variable annuities, equity indexed annuities and fixed annuities in a payout...

  • Page 58
    Life, Disability Income and Long Term Care Insurance Future policy benefits and policy claims and other policyholders' funds related to life, disability income and long term care insurance include liabilities for fixed account values on fixed and variable universal life policies, liabilities for ...

  • Page 59
    ... income within five years of the year in which the capital losses are recognized for tax purposes. Our life insurance subsidiaries will not be able to file a consolidated U.S. federal income tax return with the other members of our affiliated group until 2010, which will result in net operating and...

  • Page 60
    ... fees also include amounts received under marketing support arrangements for sales of mutual funds and other companies' products, such as through our wrap accounts, as well as surrender charges on fixed and variable universal life insurance and annuities. Net Investment Income Net investment...

  • Page 61
    ...equity indexed annuities are included within interest credited to fixed accounts. Benefits, Claims, Losses and Settlement Expenses Benefits, claims, losses and settlement expenses consist of amounts paid and changes in liabilities held for anticipated future benefit payments under insurance policies...

  • Page 62
    ... investment management services and recognize management fees in our Asset Management segment, such as the assets of the general account and RiverSource Variable Product funds held in the separate accounts of our life insurance subsidiaries. Investors in the mutual funds and face amount certificates...

  • Page 63
    ... 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 and settlement expenses Amortization of deferred acquisition costs...

  • Page 64
    ... year. Results for 2009 reflect the impacts from a 22% decline in the daily average S&P 500 Index on a period-over-period basis, lower short term interest rates and lower client activity, the costs of integrating our 2008 acquisitions offset by growth in spread products, net inflows in wrap accounts...

  • Page 65
    ... for the year ended December 31, 2009 compared to $1.6 billion in the prior year primarily due to lower client activity levels and lower asset-based fees driven by lower equity markets, partially offset by revenues resulting from our 2008 acquisitions. Net investment income increased $1.2 billion to...

  • Page 66
    ... ended December 31, 2009 compared to $1.1 billion for the prior year driven by an increase in expenses from variable annuity living benefit guarantees. Benefits, claims, losses and settlement expenses in 2009 were impacted by $148 million of market impacts on variable annuity benefit expenses, net...

  • Page 67
    ... items and $79 million in tax benefits related to changes in the status of current audits and closed audits, tax planning initiatives, and the finalization of prior year tax returns. On September 25, 2007, the Internal Revenue Service (''IRS'') issued Revenue Ruling 2007-61 in which it announced...

  • Page 68
    ... and non-affiliated mutual funds and other securities on a stand-alone basis, clients may purchase mutual funds, among other securities, in connection with investment advisory fee-based ''wrap account'' programs or services, and pay fees based on a percentage of their assets. ANNUAL REPORT 2009 53

  • Page 69
    ... average S&P 500 Index on a period-over-period basis, partially offset by net inflows. Wrap account assets increased $22.1 billion, or 30%, compared to the prior year due to net inflows and market appreciation. Financial planning fees were lower for the year ended December 31, 2009 compared to the...

  • Page 70
    ...prior to its acquisition by RiverSource Investments, LLC; the Seligman Variable Insurance Trusts (''VITs''), a group of variable product funds; and the Seligman closed-end funds. The following table presents the total assets and number of funds managed by our RiverSource family of mutual funds as of...

  • Page 71
    ... by advisors not affiliated with Ameriprise Financial, Inc., RiverSource S&P 500 Index Fund, RiverSource Cash Management Fund and RiverSource Tax Free Money Market Fund. Aggregated equity rankings include RiverSource Portfolio Builder Series and other balanced and asset allocation funds that invest...

  • Page 72
    ... Standard Chartered Bank's World Express Funds investment business. Market Appreciation/ (Depreciation) December 31, 2007 Net Flows Foreign Exchange Other December 31, 2008 (in billions) Domestic Managed Assets: Retail Funds Institutional Funds Alternative Funds Trust Funds Less: Eliminations...

  • Page 73
    ... in distribution fees. Management and financial advice fees increased $27 million, or 3%, to $1.1 billion for the year ended December 31, 2009, due to strong hedge fund performance and net inflows, partially offset by a 22% decline in the daily average S&P 500 Index on a period-over-period basis, as...

  • Page 74
    ... credited on the fixed account balances. We also earn net investment income on owned assets supporting reserves for immediate annuities and for certain guaranteed benefits offered with variable annuities and on capital supporting the business. Intersegment revenues for this segment reflect fees paid...

  • Page 75
    ...non-deferred distribution-related costs driven by higher sales of fixed annuities. Interest credited to fixed accounts increased $113 million, or 17%, to $759 million for the year ended December 31, 2009, primarily due to higher average fixed annuity account balances and higher average fixed annuity...

  • Page 76
    ... supporting variable universal life separate account balances. This segment earns intersegment revenues from fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource VST Funds under the variable universal life...

  • Page 77
    ... valuation system for RiverSource Life products in 2008. Expenses Total expenses decreased $127 million, or 8%, to $1.5 billion for the year ended December 31, 2009, primarily due to the impact of updating valuation assumptions. Benefits, claims, losses and settlement expenses increased $68 million...

  • Page 78
    ..., or 46%, compared to the prior year due to money market support costs incurred in 2008, including $77 million related to the mark-to-market of Lehman Brothers securities that we purchased from various 2a-7 money market mutual funds managed by our subsidiary, RiverSource Investments, LLC and $36...

  • Page 79
    ... rate was reduced to 0-25 basis points. Pretax net realized investment losses on Available-for-Sale securities were $757 million for the year ended December 31, 2008, which primarily related to other-than-temporary impairments of various financial services securities, high yield corporate credits...

  • Page 80
    ... expenses for the year ended December 31, 2007 attributable to the review of valuation assumptions for products of RiverSource Life companies and the impact of markets on DAC and DSIC amortization and variable annuity living benefit riders, net of hedges were as follows: Benefits, Claims, Losses and...

  • Page 81
    ... these benefits was a $41 million expense related to the market's impact on DSIC, a $69 million expense related to the equity market's impact on variable annuity guaranteed death and income benefits and increases in life, long term care and auto and home insurance benefits. Benefits, claims, losses...

  • Page 82
    ...to our Consolidated Financial Statements: Years Ended December 31, Percent Share of Total Percent Share of Total 2008 2007 (in millions, except percentages) Total net revenues Advice & Wealth Management Asset Management Annuities Protection Corporate & Other Eliminations Total net revenues Total...

  • Page 83
    ... of the deterioration in the equity markets, as well as lower net inflows compared to the prior year, partially offset by a $2.0 billion increase in wrap account assets related to our acquisition of H&R Block Financial Advisors, Inc. Net inflows in wrap accounts decreased to $3.7 billion in 2008...

  • Page 84
    ... percentages) Revenues Management and financial advice fees Distribution fees Net investment income Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Amortization of deferred acquisition costs General and administrative expense...

  • Page 85
    ... 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 and settlement expenses Amortization of deferred acquisition costs...

  • Page 86
    ... primarily due to expense control initiatives. Protection Our Protection segment offers a variety of protection products to address the identified protection and risk management needs of our retail clients including life, disability income and property-casualty insurance. ANNUAL REPORT 2009 71

  • Page 87
    ... 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 and settlement expenses Amortization of deferred acquisition costs...

  • Page 88
    ... expense related to changes in fair value of Lehman Brothers securities that we purchased from various 2a-7 money market mutual funds managed by RiverSource Investments, expense of $36 million for the cost of guaranteeing specific client holdings in an unaffiliated money market mutual fund and...

  • Page 89
    ... discount rates used for these securities at December 31, 2009 ranged from 11% to 22%. Non-Agency Residential Mortgage Backed Securities Backed by Sub-prime, Alt-A or Prime Collateral Sub-prime mortgage lending is the origination of residential mortgage loans to customers with weak credit profiles...

  • Page 90
    ... a current market estimate of our nonperformance risk. The nonperformance risk adjustment is based on broker quotes for credit default swaps that are adjusted to estimate the risk of our life insurance company subsidiaries not fulfilling these liabilities. Consistent with general market conditions...

  • Page 91
    ... clearing broker-dealer subsidiary, 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, Threadneedle, RiverSource Service Corporation...

  • Page 92
    ... Requirements 2009 2008 RiverSource Life(1)(2) RiverSource Life of NY(1)(2) IDS Property Casualty(1)(3) Ameriprise Insurance Company(1)(3) ACC(4)(5) Threadneedle(6) Ameriprise Bank, FSB(7) AFSI(3)(4) Ameriprise Captive Insurance Company(3) Ameriprise Trust Company(3) AEIS(3)(4) Securities America...

  • Page 93
    ... 31, 2009 2008 (in millions) 2007 Dividend capacity RiverSource Life(1) AEIS(4) ACC(2) RiverSource Investments, LLC RiverSource Service Corporation Threadneedle Ameriprise Trust Company Securities America Financial Corporation AFSI(4) IDS Property Casualty(3) Ameriprise Captive Insurance Company...

  • Page 94
    ... Cash dividends paid/(contributions made), net RiverSource Life Ameriprise Bank, FSB AEIS(1) ACC RiverSource Investments, LLC RiverSource Service Corporation Threadneedle Ameriprise Trust Company Securities America Financial Corporation AFSI(1) IDS Property Casualty Ameriprise Advisor Capital, LLC...

  • Page 95
    ... the freeze of funds in the Reserve Primary Fund and the Reserve Government Fund, as well as the costs associated with supporting RiverSource 2a-7 money market funds and a net increase in income taxes paid compared to the prior year. Reduced cash inflows related to lower fee revenues were offset...

  • Page 96
    ...Total termination payments associated with these purchase obligations were $68 million as of December 31, 2009. Payments for 2010 include $1.0 billion of estimated consideration to be paid for our pending acquisition of the long-term asset management business of Columbia Management Group (''Columbia...

  • Page 97
    ...legal claims threatened or initiated by clients, other persons and regulators, and developments in regulation and legislation; • investment management performance and consumer acceptance of the Company's products; • effects of competition in the financial services industry and changes in product...

  • Page 98
    ... staying at those levels for the next 12 months. In estimating the values of variable annuity riders, equity indexed annuities, stock market certificates and the associated hedge assets, we assumed no change in implied market volatility despite the 10% drop in equity prices. ANNUAL REPORT 2009 83

  • Page 99
    ... Rate Increase 100 Basis Points Net Impact Asset-based management and distribution fees Variable annuity riders: GMWB GMAB DAC and DSIC amortization(2) Total variable annuity riders Fixed annuities, fixed portion of variable annuities and fixed insurance products Flexible savings and other fixed...

  • Page 100
    .... Equity Price Risk - Variable Annuity Riders 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 prices decline, the returns from the separate account...

  • Page 101
    ... portion of annuity and insurance products of RiverSource Life companies and their investment portfolios. We guarantee an interest rate to the holders of these products. Premiums and deposits collected from clients are primarily invested in fixed rate securities to fund the client credited rate with...

  • Page 102
    ...included in customer deposits on our Consolidated Balance Sheets. At December 31, 2009, we had $878 million in reserves related to stock market certificates. Equity Price Risk - Stock Market Certificates As with the equity indexed annuities, the equity-linked return to investors creates equity price...

  • Page 103
    .... As of December 31, 2009, our largest reinsurance credit risk is related to a long term care coinsurance treaty with a life insurance subsidiary of Genworth Financial, Inc. See Note 10 to our Consolidated Financial Statements for additional information on reinsurance. 88 ANNUAL REPORT 2009

  • Page 104
    ...Financial Statements and Supplementary Data Consolidated Financial Statements: Ameriprise Financial, Inc. Report of Independent Registered Public Accounting Firm ...Consolidated Statements of Operations - Years ended December 31, 2009, 2008 and 2007 ...Consolidated Balance Sheets - December 31, 2009...

  • Page 105
    ...costs in connection with modifications or exchanges insurance and annuity contracts. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Ameriprise Financial, Inc.'s internal control over financial reporting as of December 31, 2009...

  • Page 106
    ... 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 and settlement expenses Amortization of deferred acquisition costs...

  • Page 107
    ... Financial, Inc. December 31, 2009 2008 (in millions, except share amounts) Assets Cash and cash equivalents Investments Separate account assets Receivables Deferred acquisition costs Restricted and segregated cash Other assets Total assets Liabilities and Equity Liabilities: Future policy benefits...

  • Page 108
    ... by operating activities: Capitalization of deferred acquisition and sales inducement costs Amortization of deferred acquisition and sales inducement costs Depreciation, amortization and accretion, net Deferred income tax (benefit) expense Share-based compensation Net realized investment gains Other...

  • Page 109
    Consolidated Statements of Cash Flows (continued) Ameriprise Financial, Inc. Years Ended December 31, 2009 2008 2007 (in millions) Cash Flows from Financing Activities Investment certificates and banking time deposits: Proceeds from additions Maturities, withdrawals and cash surrenders Change in ...

  • Page 110
    ... Share-based compensation plans Other, net Balances at December 31, 2007 Change in accounting principles, net of tax Comprehensive loss: Net loss Other comprehensive loss, net of tax: Change in net unrealized securities losses Change in net unrealized derivatives losses Change in defined benefit...

  • Page 111
    ...Available-for-Sale securities are accounted for under the cost method where the Company owns less than a 20% voting interest and does not exercise significant influence. Generally, a VIE is a corporation, partnership, trust or any other legal structure that either does not have equity investors with...

  • Page 112
    ... and claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. Cash and Cash Equivalents Cash equivalents include time deposits and other highly liquid investments...

  • Page 113
    ... (losses) recorded within net investment income. Policy Loans Policy loans include life insurance policy, annuity and investment certificate loans. These loans are carried at the aggregate of the unpaid loan balances, which do not exceed the cash surrender values of underlying products, plus accrued...

  • Page 114
    ...of variable annuity contractholders and variable life insurance policyholders. The Company receives investment management fees, mortality and expense risk fees, guarantee fees and cost of insurance charges from the related accounts. Included in separate account liabilities are investment liabilities...

  • Page 115
    ...derivatives associated with annuities is included in future policy benefits and claims, whereas the fair value of stock market investment certificate embedded derivatives is included in customer deposits. The changes in the fair value of the equity indexed annuity and investment certificate embedded...

  • Page 116
    ... Statements of Operations. For annuity, life and health insurance products, key assumptions underlying those long term projections include interest rates (both earning rates on invested assets and rates credited to contractholder and policyholder accounts), equity market performance, mortality...

  • Page 117
    ... Future policy benefits and claims related to fixed annuities and variable annuity guarantees include liabilities for fixed account values on fixed and variable deferred annuities, guaranteed benefits associated with variable annuities, equity indexed annuities and fixed annuities in a payout status...

  • Page 118
    ...on year of issue, with an average rate of approximately 5.7%. Life and Health Insurance Future policy benefits and claims related to life and health insurance include liabilities for fixed account values on fixed and variable universal life policies, liabilities for unpaid amounts on reported claims...

  • Page 119
    ...years; and iv) tax planning strategies. Sources of Revenue The Company generates revenue from a wide range of investment and insurance products. Principal sources of revenue include management and financial advice fees, distribution fees, net investment income and premiums. Management and Financial...

  • Page 120
    ... fees also include amounts received under marketing support arrangements for sales of mutual funds and other companies' products, such as through the Company's wrap accounts, as well as surrender charges on fixed and variable universal life insurance and annuities. Net Investment Income Net...

  • Page 121
    ... for profit, risk, and expenses, and adjusting the rate used to discount expected cash flows to reflect a current market estimate of the Company's risk of nonperformance specific to these liabilities. These adjustments resulted in an adoption impact of a $4 million increase in earnings, net of...

  • Page 122
    ... of its cost basis. The standard requires separate presentation of both the credit and noncredit portions of other-than-temporary impairments on the financial statements and additional disclosures. This standard is effective for interim and annual reporting periods ending after June 15, 2009, with...

  • Page 123
    ...shares to American Express shareholders (the ''Distribution''). American Express historically provided a variety of corporate and other support services for the Company, including information technology, treasury, accounting, financial reporting, tax administration, human resources, marketing, legal...

  • Page 124
    ... Financial brand, separating and reestablishing the Company's technology platforms and advisor and employee retention programs. 5. Acquisitions and Pending Transactions On September 30, 2009, the Company announced a definitive agreement to acquire the long-term asset management business of Columbia...

  • Page 125
    Available-for-Sale securities distributed by type were as follows: December 31, 2009 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses (in millions) Fair Value Non-Credit OTTI(1) Description of Securities Corporate debt securities Residential mortgage backed securities Commercial ...

  • Page 126
    ...384) As part of the Company's ongoing monitoring process, management determined that a majority of the gross unrealized losses on its Available-for-Sale securities are attributable to changes in credit spreads across sectors. The primary driver of lower unrealized losses in ANNUAL REPORT 2009 111

  • Page 127
    ... balance sheet dates. As a result of the adoption of a new accounting standard effective January 1, 2009, net unrealized investment gains (losses) arising during the period also includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit...

  • Page 128
    ... million of other-than-temporary impairments in 2009 primarily related to credit losses on non-agency residential mortgage backed securities, corporate debt securities primarily in the financial services and gaming industries and other structured investments. The $762 million of other-than-temporary...

  • Page 129
    ... mortgage documents, which gives it the right to take possession of the property if the borrower fails to perform according to the terms of the agreements. The balances of and changes in the allowance for loan losses were as follows: Years Ended December 31, 2009 2008 (in millions) 2007 Balance at...

  • Page 130
    ..., respectively, for the years then ended. 8. Deferred Acquisition Costs and Deferred Sales Inducement Costs During the third quarter of 2009, 2008 and 2007, the Company completed the annual detailed review of valuation assumptions for products of RiverSource Life companies. In addition, during...

  • Page 131
    ... attributable to the review of valuation assumptions for the years ended December 31, 2009, 2008 and 2007 and the valuation system conversion for the year ended December 31, 2008 were as follows: Benefits, Claims, Losses, and Settlement Expenses Pretax Benefit (Charge) Premiums Other Revenues...

  • Page 132
    ... assets during the years ended December 31, 2009, 2008 and 2007 was $32 million, $25 million and $27 million, respectively. In 2009, 2008 and 2007, the Company had impairment charges of nil, $8 million and $1 million, respectively, related to Asset Management contracts. ANNUAL REPORT 2009 117

  • Page 133
    ...next five years was as follows: (in millions) 2010 2011 2012 2013 2014 $ 31 28 28 26 21 10. Reinsurance Generally, the Company reinsures 90% of the death benefit liability related to individual fixed and variable universal life and term life insurance products. As a result, the Company typically...

  • Page 134
    ... Equity indexed annuities embedded derivatives Variable annuities fixed sub-accounts Variable annuity GMWB Variable annuity GMAB Other variable annuity guarantees Total annuities VUL/UL insurance Other life, disability income and long term care insurance Auto, home and other insurance Policy claims...

  • Page 135
    ... investment performance, net of fees, is passed through to the investors. The value of the liabilities represents the value of the units in issue of the pooled pension funds. 12. Variable Annuity and Insurance Guarantees The majority of the variable annuity contracts offered by the Company contain...

  • Page 136
    ... based on performance of the contract or issue age. On some contracts, credits are applied annually for the first ten years to increase the guaranteed amount as long as withdrawals have not been taken. Variable annuity contractholders age 79 or younger at contract issue can also obtain a principal...

  • Page 137
    ...$ 8,229 The Company offers fixed rate investment certificates primarily in amounts ranging from $1,000 to $1 million with terms ranging from three to 36 months. Investment certificates may be purchased either with a lump sum payment or installment payments. Certificate product owners are entitled...

  • Page 138
    ...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 139
    ... ''2005 ICP''), the Ameriprise Financial 2008 Employment Incentive Equity Award Plan (the ''2008 Plan''), the Amended Deferred Equity Program for Independent Financial Advisors (''P2 Deferral Plan''), and the Ameriprise Advisor Group Deferred Compensation Plan (''P1 Plan''). 124 ANNUAL REPORT 2009

  • Page 140
    ... 31, 2009, there was $158 million of total unrecognized compensation cost related to non-vested awards under the Company's share-based compensation plans. That cost is expected to be recognized over a weighted-average period of 2.5 years. Amended and Restated Ameriprise Financial 2005 Incentive...

  • Page 141
    ...based on age and length of service. Compensation expense for restricted stock awards is based on the market price of Ameriprise Financial stock on the date of grant and is amortized on a straight-line basis over the vesting period. Quarterly dividends are paid on restricted stock, as declared by the...

  • Page 142
    ... to 8.5 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 143
    ... Capital Adequacy Requirements for asset managers. The Company has seven broker-dealer subsidiaries, American Enterprise Investment Services, Inc., Ameriprise Financial Services, Inc., Securities America, Inc. (''SAI''), RiverSource Distributors, Inc., RiverSource Fund Distributors, Inc., AASI and...

  • Page 144
    ... Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their NAV and classified as Level 1. The Company's remaining cash equivalents are classified as Level 2 and measured at amortized cost, which is...

  • Page 145
    ..., these measurements are classified as Level 2. The embedded derivative liability attributable to the provisions of the Company's equity indexed annuities and stock market certificates is recorded in future policy benefits and claims and customer deposits, respectively. 130 ANNUAL REPORT 2009

  • Page 146
    ...stocks Other structured investments Other debt obligations Total Available-for-Sale securities Trading securities Separate account assets Other assets Total assets at fair value Liabilities Future policy benefits and claims Customer deposits Other liabilities Total liabilities...ANNUAL REPORT 2009 131

  • Page 147
    ... and preferred stocks Other structured investments Other debt obligations Total Available-for-Sale securities Trading securities Separate account assets Other assets Total assets at fair value Liabilities Future policy benefits and claims Customer deposits Other liabilities Total liabilities at fair...

  • Page 148
    ... liabilities held at December 31 for the year then ended: 2009 Benefits, Claims, Losses and Settlement Expenses 2008 Benefits, Claims, Losses and Settlement Expenses Net Investment Income Other Revenue Net Investment Income Other Revenue (in millions) Available-for-Sale securities: Corporate...

  • Page 149
    ..., with discount rates based on the Company's estimate of current market conditions. Loans held for sale are measured at the lower of cost or market and fair value is based on what secondary markets are currently offering for loans with similar characteristics. Brokerage margin loans are measured...

  • Page 150
    ... non-life contingent fixed annuities in payout status, equity indexed annuity host contracts and the fixed portion of a small number of variable annuity contracts classified as investment contracts is determined in a similar manner. Customer deposits The fair value of investment certificate reserves...

  • Page 151
    ...of the net periodic pension cost for all pension plans were as follows: Years Ended December 31, 2009 2008 (in millions) 2007 Service cost Interest cost Expected return on plan assets Amortization of prior service costs Recognized net actuarial loss Other Net periodic pension benefit cost $ 32 25...

  • Page 152
    ... net periodic benefit cost for pension plans were as follows: 2009 2008 2007 Discount rates Rates of increase in compensation levels Expected long term rates of return on assets 6.22% 4.23 8.20 6.17% 4.22 8.20 5.74% 4.14 8.21 In developing the 2009, 2008 and 2007 expected long term rate...

  • Page 153
    ... Real Estate Investment Trust Asset Category Balance at January 1, 2009 Actual return on plan assets: Relating to assets still held at the reporting date Purchases, sales, and settlements, net Balance at December 31, 2009 The Company's retirement plans expect to make benefit payments to retirees...

  • Page 154
    ... IRS limits and invest their contributions in one or more of the 401(k) Plan investment options, which include the Ameriprise Financial Stock Fund. The Company matches 100% of the first 3% of base pay an employee contributes on a pretax basis each pay period. The Company may ANNUAL REPORT 2009 139

  • Page 155
    ... performance of the Company. Prior to May 2009, the Company also made contributions equal to 1% of base pay each pay period, which were automatically invested in the Ameriprise Financial Stock Fund. Effective March 1, 2010, the Company will no longer make a variable match and will modify its fixed...

  • Page 156
    ... GMAB Interest rate lock commitments Equity contracts GMWB and GMAB GMDB Equity indexed annuities Equity indexed annuities embedded derivatives Stock market certificates Stock market certificates embedded derivatives Seed money Other GMWB and GMAB embedded derivatives Total Benefits, claims, losses...

  • Page 157
    ... paid or received. Equity indexed annuities and stock market certificate products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by the Company related to equity indexed annuities and stock market certificate products...

  • Page 158
    ... in net investment income related to ineffectiveness on its swaptions. Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is 26 years and relates to forecasted debt interest payments. Credit Risk Credit risk associated with...

  • Page 159
    ... credit rating (generally an investment grade rating) or the Company's life insurance subsidiary does not maintain a specific financial strength rating. If these termination provisions were to be triggered, the Company's counterparty could require immediate settlement of any net liability position...

  • Page 160
    ... Deferred income tax liabilities: Deferred acquisition costs Deferred sales inducement costs Investment related Net unrealized gains on Available-for-Sale securities Depreciation expense Intangible assets Other Gross deferred income tax liabilities Net deferred income tax assets ANNUAL REPORT 2009...

  • Page 161
    ... with variable contracts of life insurance companies. Revenue Ruling 2007-61 suspended a revenue ruling issued in August 2007 that purported to change accepted industry and IRS interpretations of the statutes governing these computational questions. Any regulations that the 146 ANNUAL REPORT 2009

  • Page 162
    ... related to the current year's separate account DRD. As a result of the Separation from American Express, the Company's life insurance subsidiaries will not be able to file a consolidated U.S. federal income tax return with the other members of the Company's affiliated group until 2010. The Company...

  • Page 163
    ... mutual funds, annuities, equity and fixed income securities, insurance products, brokerage services, financial plans and other advice offerings; supervision of the Company's financial advisors; supervisory practices in connection with financial advisors' outside business activities; sales practices...

  • Page 164
    ... American Express Financial Advisors Inc., was filed in the United States District Court for the District of Arizona, and was later transferred to the United States District Court for the District of Minnesota. The plaintiffs alleged that they were investors in several of the Company's mutual funds...

  • Page 165
    ...million shares of its common stock. The proceeds of $869 million will be used for general corporate purposes, including the Company's pending acquisition of the long-term asset management business of Columbia, which is expected to close in the spring of 2010. See Note 5 for additional information on...

  • Page 166
    ...the Company's affiliated financial advisors and to the retail clients of unaffiliated advisors through third-party distribution. Revenues for the Company's variable annuity products are primarily earned as fees based on underlying account balances, which are impacted by both market movements and net...

  • Page 167
    ... supporting variable universal life separate account balances. This segment earns intersegment revenues from fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource VST Funds under the variable universal life...

  • Page 168
    ...Net income attributable to Ameriprise Financial Year Ended December 31, 2008 Advice & Wealth Management Asset Management Corporate & Other $ 722 Annuities Protection (in millions) Eliminations Consolidated Revenue from external customers Intersegment revenue Total revenues Banking and deposit...

  • Page 169
    Year Ended December 31, 2007 Advice & Wealth Management Asset Management Corporate & Other Annuities Protection (in millions) Eliminations Consolidated Revenue from external customers Intersegment revenue Total revenues Banking and deposit interest expense Net revenues Depreciation and ...

  • Page 170
    ... 56.17 $ 57.55 $ 40.60 $ 45.65 Certain prior period amounts have been reclassified to conform to the current period's presentation. Diluted shares used in this calculation represent basic shares due to the net loss. Using actual diluted shares would result in anti-dilution. ANNUAL REPORT 2009 155

  • Page 171
    ...financial reporting is 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, 2009. 156 ANNUAL REPORT 2009

  • Page 172
    ... standards of the Public Company Accounting Oversight Board (United States), the 2009 consolidated financial statements of Ameriprise Financial, Inc., and our report dated February 23, 2010, expressed an unqualified opinion thereon. Minneapolis, Minnesota February 23, 2010 ANNUAL REPORT 2009 157

  • Page 173
    ..., Global Financial Services of American Express from March 2001 until April 2002. Mr. Sweeney is currently on the board of directors of the Securities Industry and Financial Markets Association. William F. Truscott - President - U.S. Asset Management, Annuities and Chief Investment Officer Mr...

  • Page 174
    ... Group President, Global Financial Services at American Express. John R. Woerner - President - Insurance and Chief Strategy Officer Mr. Woerner (41) has been our President - Insurance and Chief Strategy Officer since February 2008. Prior to his current role, he was Senior Vice President - Strategy...

  • Page 175
    ... - Share-Based Compensation to our Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K.. The non-shareholder approved plans consist of the Ameriprise Financial 2008 Employment Incentive Equity Award Plan, the Ameriprise Advisor Group Deferred Compensation Plan and...

  • Page 176
    ... Compensation Plan, and 2,278,246 shares of common stock issuable under the Ameriprise Financial Deferred Equity Program for Independent Financial Advisors. Information concerning the market for our common shares and our shareholders can be found in Part II, Item 5 of this Annual Report on Form...

  • Page 177
    ...duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. AMERIPRISE FINANCIAL, INC. (Registrant) Date: February 23, 2010 By /s/ Walter S. Berman Walter S. Berman Executive Vice President and Chief Financial Officer POWER OF ATTORNEY KNOW ALL PERSONS BY THESE...

  • Page 178
    ...Jeffrey Noddle Jeffrey Noddle Director Date: February 23, 2010 By /s/ H. Jay Sarles H. Jay Sarles Director Date: February 23, 2010 By /s/ Robert F. Sharpe, Jr. Robert F. Sharpe, Jr. Director Date: February 23, 2010 By /s/ William H. Turner William H. Turner Director ANNUAL REPORT 2009 163

  • Page 179
    ... of the three years in the period ended December 31, 2009, and have issued our report thereon dated February 23, 2010 (included elsewhere in this Registration Statement). Our audits also included the financial statement schedule listed in Item 15(a) of this Annual Report (Form 10-K). This schedule...

  • Page 180
    SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Parent Company Only) TABLE OF CONTENTS Condensed Statements of Operations ...Condensed Balance Sheets ...Condensed Statements of Cash Flows ...Notes to Condensed Financial Information of Registrant ...F-3 F-4 F-5 F-6 F-2

  • Page 181
    ... FINANCIAL INFORMATION OF REGISTRANT CONDENSED STATEMENTS OF OPERATIONS (Parent Company Only) Years Ended December 31, 2009 2008 2007 (in millions) Revenues Management and financial advice fees Net investment income Other revenues Total revenues Banking and deposit interest expense Total net...

  • Page 182
    ... shares, at cost (40,744,090 and 39,921,924 shares, respectively) Accumulated other comprehensive income (loss), net of tax, including amounts applicable to equity investments in subsidiaries: Total shareholders' equity Total liabilities and equity See Notes to Consolidated Financial Statements...

  • Page 183
    ... Excess tax benefits from share-based compensation Other, net Net cash provided by (used in) financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Supplemental Disclosures: Interest paid on...

  • Page 184
    ... operating lease of IDS Property Casualty Insurance Company. All consolidated legal, regulatory and arbitration proceedings, including class actions of Ameriprise Financial, Inc. and its consolidated subsidiaries are potential or current obligations of the Parent Company. The Parent Company and ACC...

  • Page 185
    ....1 Tax Allocation Agreement by and between American Express and Ameriprise Financial, Inc., dated as of September 30, 2005 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, File No. 1-32525, filed on October 4, 2005). Ameriprise Financial 2005 Incentive Compensation Plan...

  • Page 186
    ... Financial 2008 Employment Incentive Equity Award Plan (incorporated by reference to Exhibit 4.1 to the Registration Statement on Form S-8, File No. 333-156075, filed on December 11, 2008). Ameriprise Advisor Group Deferred Compensation Plan, as amended and restated effective January 1, 2010. Credit...

  • Page 187
    .... Fiscal year ending December 31. The stock price performance included in this graph is not necessarily indicative of future price performance. Copyright © 2010 S&P, a division of The McGraw-Hill Companies, Inc. All rights reserved. Ameriprise Financial, Inc. S&P 500 Index S&P Financials Index

  • Page 188
    .... We filed the certifications of our chief executive officer and chief financial officer with the Securities and Exchange Commission pursuant to section 302 of the Sarbanes-Oxley Act of 2002 as exhibits 31.1 and 31.2 respectively, to our Annual Report on Form 10-K for the year ended Dec. 31, 2009...

  • Page 189
    ...Management Products and Services William F. Truscott President U.S. Asset Management, Annuities and Chief Investment Officer John R. Woerner President Insurance and Chief Strategy Officer * Mr. Henderson is not an executive officer of Ameriprise Financial for purposes of Section 16 of the Securities...

  • Page 190
    ameriprise.com © 2010 Ameriprise Financial, Inc. All rights reserved. 400425 F (2/10)