A.M. Best Co. has reiterated its ratings for
Ameriprise Financial, Inc.
) and its insurance wings. The rating agency has maintained the
issuer credit ratings (ICR) of "a-" and reaffirmed the company's
existing debt ratings.
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The agency has also reaffirmed the ratings for Ameriprise's
insurance divisions and their subsidiaries. While the ratings of
RiverSource Life Insurance Company were reaffirmed with financial
strength rating (FSR) of A+ and ICR of "aa-", the ratings of IDS
Property Casualty Insurance Company (IDS) were maintained at FSR
of A and ICRs of "a+". All the ratings were reaffirmed a stable
The affirmation of the ratings indicates Ameriprise's steady
capital strength to meet financial commitments; however, it is
subject to market risks and volatility. Going forward, the
improvement in the interest rate scenario appears to be blurred
with the Federal Reserve continuing with its bond purchase plan.
Nevertheless, per A.M. Best, the impact of sluggish economy on
Ameriprise's annuity and insurance business will be partially
offset as a major portion matures in the near future and
therefore can be assigned revised rates.
Though Ameriprise's statutory premiums from annuity and life and
health unit have been declining over the time, particularly due
to a drop in its sales, this setback has been counteracted by a
change in product mix indicated by a surge in ordinary life
insurance sales. Ameriprise has always taken measures to predict
and mitigate risks, formulated strategies to hedge GAAP income
and economic risk, thereby, resulting in positive statutory
Ameriprise currently carries a Zacks Rank #4 (Sell). Some better
performing financial institutions include
GAMCO Investors, Inc.
Affiliated Managers Group Inc.
The Blackstone Group L.P.
). While GAMCO Investors carries a Zacks Rank #1 (Strong Buy),
Affiliated Managers Group and The Blackstone Group carry a Zack
Rank #2 (Buy).