Ameriprise 2011 Annual Report Download - page 57

Item 7. Management’s Discussion and Analysis of Financial Condition and Results
of Operations
The following discussion and analysis of our consolidated financial condition and results of operations should be read in
conjunction with the ‘‘Forward-Looking Statements,’’ our Consolidated Financial Statements and Notes that follow and the
‘‘Consolidated Five-Year Summary of Selected Financial Data’’ and the ‘‘Risk Factors’’ included in our Annual Report on
Form 10-K. Certain reclassifications of prior year amounts have been made to conform to the current presentation.
References below to ‘‘Ameriprise Financial,’’ the ‘‘Company,’’ ‘‘we,’’ ‘‘us,’’ and ‘‘our’’ refer to Ameriprise Financial, Inc.
exclusively, to our entire family of companies, or to one or more of our subsidiaries.
Overview
We are a diversified financial services company with $631 billion in assets under management and administration as of
December 31, 2011. We serve individual investors’ and institutions’ financial needs, hold leadership positions in financial
planning, wealth management, retirement, asset management, annuities and insurance, and we maintain a strong
operating and financial foundation.
Ameriprise is in a strong position to capitalize on significant demographic and market trends, which we believe will continue
to drive increased demand for our services. Our emphasis on deep client-advisor relationships has been central to the
success of our business model, including through the extreme market conditions of the past few years, and we believe it
will help us navigate future market and economic cycles. We continue to strengthen our position as a retail financial
services leader as we focus on meeting the financial needs of the mass affluent and affluent, as evidenced by our
leadership in financial planning, a client retention percentage rate of 92%, and our status as a top ten ranked firm within
core portions of our four main business segments, including the size of our U.S. advisor force, and assets in long-term
U.S. mutual funds, variable annuities and variable universal life (‘‘VUL’’) insurance.
We offer financial planning, products and services designed to be used as solutions for our clients’ cash and liquidity, asset
accumulation, income, protection, and estate and wealth transfer needs. Our model for delivering product solutions is built
on long-term, personal relationships between our clients and our financial advisors and registered representatives
(‘‘affiliated advisors’’). Our focus on personal relationships, together with our discipline in financial planning and strengths
in product development and advice, allow us to address the evolving financial and retirement-related needs of our clients,
including our primary target market segment, the mass affluent and affluent, which we define as households with
investable assets of more than $100,000. The financial product solutions we offer through our affiliated advisors include
both our own products and services and the products of other companies. Our affiliated advisor network is the primary
channel through which we offer our life insurance and annuity products and services, as well as a range of banking and
protection products.
Our affiliated advisors are focused on using a financial planning and advisory process designed to provide comprehensive
advice that focuses on all aspects of our clients’ finances. This approach allows us to recommend actions and a broad
range of product solutions, including investment, annuity, insurance, banking and other financial products that can help
clients attain a return or form of protection over time while accepting what they determine to be an appropriate range and
level of risk. We believe our focus on meeting clients’ needs through personal financial planning results in more satisfied
clients with deeper, longer lasting relationships with our company and higher retention of our affiliated advisors.
As of December 31, 2011, we had a network of more than 9,700 affiliated advisors. The financial product solutions we
offer through our affiliated advisors include both our own products and services and the products of other companies. Our
affiliated advisor network is the primary channel through which we offer our life insurance and annuity products and
services, as well as a range of banking and protection products. We offer our affiliated advisors training, tools, leadership,
marketing programs and other field and centralized support to assist them in delivering advice and product solutions to
clients. We believe our comprehensive and client-focused approach not only improves the products and services we
provide to their clients, but also allows us to reinvest in enhanced services for clients and increase support for financial
advisors.
We have four main operating segments: Advice & Wealth Management, Asset Management, Annuities and Protection, as
well as our Corporate & Other segment. Our four main operating segments are aligned with the financial solutions we offer
to address our clients’ needs. The products and services we provide retail clients and, to a lesser extent, institutional
clients, are the primary source of our revenues and net income. Revenues and net income are significantly affected by
investment performance and the total value and composition of assets we manage and administer for our retail and
institutional clients as well as the distribution fees we receive from other companies. These factors, in turn, are largely
determined by overall investment market performance and the depth and breadth of our individual client relationships.
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