Ameriprise 2009 Annual Report Download - page 92

Actual capital and regulatory capital requirements for our wholly owned subsidiaries subject to regulatory capital requirements were as
follows:
December 31,
Regulatory Capital
Actual Capital Requirements
2009 2008 2009 2008
(in millions)
RiverSource Life(1)(2) $ 3,450 $ 2,722 $ 803 $ 551
RiverSource Life of NY(1)(2) 286 229 44 58
IDS Property Casualty(1)(3) 405 436 133 124
Ameriprise Insurance Company(1)(3) 46 47 2 2
ACC(4)(5) 293 243 231 264
Threadneedle(6) 201 227 155 140
Ameriprise Bank, FSB(7) 255 113 231 123
AFSI(3)(4) 79 132 1 #
Ameriprise Captive Insurance Company(3) 28 20 12 9
Ameriprise Trust Company(3) 36 35 32 28
AEIS(3)(4) 133 74 29 4
Securities America, Inc.(3)(4) 15 17 # #
RiverSource Distributors, Inc.(3)(4) 41 41 # #
RiverSource Fund Distributors, Inc.(3)(4) 13 7 # 1
RiverSource Services, Inc.(8) —1 —#
Ameriprise Advisor Services, Inc.(3)(4)(9) 422 # 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, 2009 and 2008.
(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, 2009 represent management’s preliminary internal assessment of the risk based requirement specified by FSA
regulations.
(7) Ameriprise Bank is required to hold capital in compliance with the Office of Thrift Supervision (‘‘OTS’’) regulations and policies, which currently require
a Tier 1 (core) capital ratio of not less than 8%. 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.
(8) De-registered as of June 30, 2009.
(9) Ameriprise Advisor Services, Inc. has submitted an application to the SEC and FINRA to withdraw its registration as a broker-dealer, which is pending
review and approval of our regulators.
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.
In 2009, the parent holding company received cash dividends from its subsidiaries of $264 million and contributed cash to its
subsidiaries of $233 million. In 2008, the parent holding company received cash dividends from its subsidiaries of $1.1 billion and
contributed cash to its subsidiaries of $638 million, of which $441 million was in support of acquisitions in the fourth quarter of 2008. In
2007, subsidiaries paid cash dividends of $1.6 billion and received $40 million in contributions.
ANNUAL REPORT 2009 77