Ameriprise 2014 Annual Report Download - page 37

ratings assigned are developed from an evaluation of a company’s balance sheet strength, operating performance and
business profile. Balance sheet strength reflects a company’s ability to meet its current and ongoing obligations to its
contractholders and policyholders and includes analysis of a company’s capital adequacy. The evaluation of operating
performance centers on the stability and sustainability of a company’s sources of earnings. The business profile component
of the rating considers a company’s mix of business, market position and depth and experience of management.
Our insurance subsidiaries’ ratings are important to maintain public confidence in our protection and annuity products.
Lowering of our insurance subsidiaries’ ratings could have a material adverse effect on our ability to market our protection
and annuity products and could lead to increased surrenders of these products. We list our ratings on our website at
ir.ameriprise.com. For the most current ratings information, please see the individual rating agency’s website.
Our Segments — Corporate & Other
Our Corporate & Other segment consists of net investment income or loss on corporate level assets, including excess
capital held in our subsidiaries and other unallocated equity and other revenues as well as unallocated corporate expenses.
Competition
We operate in a highly competitive global industry. As a diversified financial services firm, we compete directly with a variety
of financial institutions, including registered investment advisors, securities brokers, asset managers, banks and insurance
companies. Our competitors may have greater financial resources, broader and deeper distribution capabilities and
products and services than we do. We compete directly with these for the provision of products and services to clients, as
well as for our financial advisors and investment management personnel.
Our Advice & Wealth Management segment competes with securities broker-dealers, independent broker-dealers, financial
planning firms, registered investment advisors, insurance companies and other financial institutions to attract and retain
financial advisors and their clients. Competitive factors influencing our ability to attract and retain financial advisors include
compensation structures, brand recognition and reputation, product offerings and technology and service capabilities and
support. Further, our financial advisors compete for clients with a range of other advisors, broker-dealers and direct
channels, including wirehouses, regional broker-dealers, independent broker-dealers, insurers, banks, asset managers,
registered investment advisers and direct distributors. Competitive factors influencing our ability to attract and retain clients
include quality of advice provided, price, reputation, product offerings and technology and service quality.
Our Asset Management segment competes on a global basis to acquire and retain managed and administered assets
against a substantial number of firms, including those in the categories listed above. Such competitors may have achieved
greater economies of scale, offer a broader array of products and services, offer products with a stronger performance
record and have greater distribution capabilities. Competitive factors influencing our performance in this industry include
investment performance, product offerings and innovation, product ratings, fee structures, advertising, service quality, brand
recognition and reputation and the ability to attract and retain investment personnel. The ability to create and maintain and
deepen relationships with distributors and clients also plays a significant role in our ability to acquire and retain managed
and administered assets. The impact of these factors on our business may vary from country to country and certain
competitors may have certain competitive advantage in certain jurisdictions. Additional detail regarding the nature and
effects of competition in the Asset Management segment is provided below in Item 1A of this Annual Report on
Form 10-K — ‘‘Risk Factors.’’
Competitors of our Annuities and Protection segments consist of both stock and mutual insurance companies. Competitive
factors affecting the sale of annuity and insurance products include distribution capabilities, price, product features,
hedging capability, investment performance, commission structure, perceived financial strength, claims-paying ratings,
service, brand recognition and financial strength ratings from rating agencies such as A.M. Best. Competitive factors
affecting the sale of property casualty insurance products also include brand recognition and distribution capabilities.
Technology
We have an integrated customer management system that serves as the hub of our technology platform. In addition, we
have specialized product engines that manage individual brokerage, mutual fund, insurance and face amount certificate
accounts. Over the years we have updated our platform to include new product lines such as brokerage, deposit, credit
and products of other companies, investment advisory accounts and e-commerce capabilities for our financial advisors and
clients. We also use a proprietary suite of processes, methods and tools for our financial planning services. We update our
technological capabilities regularly to help maintain an adaptive platform design that aims to enhance the productivity of
our advisors to allow for faster, lower-cost responses to emerging business opportunities, compliance requirements and
marketplace trends.
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