Ameriprise's third-quarter 2014 operating earnings surpassed the
Zacks Consensus Estimate. Constant improvement in revenue
generation, driven by sturdy performance of the Advice & Wealth
Management as well as Asset Management segment continued to lift
the results. Growth in assets under management (AUM) continued to
be strong, while mounting expenses remained a concern. The
company's ability to mould products to meet dynamic market needs is
expected to keep the revenue momentum going. Further, Ameriprise's
enhanced capital deployment activities continue to impress.
However, weak expense management and net outflows in the Asset
Management segment will likely put the financials under strain in
the near term.
Headquartered in Minneapolis, MN, Ameriprise Financial, Inc. was
founded in 1894 under the name Investors Syndicate, which was
changed to Investors Diversified Services Inc. (IDS) in 1949. In
1983, the company was formed as a Delaware corporation in
connection with American Express' 1984 acquisition of IDS Financial
Services from Alleghany Corporation. It further changed its name to
American Express Financial Corporation in 1994 and finally to
Ameriprise Financial Inc. in 2005. Since Sep 30, 2005, Ameriprise
Financial Inc. has been operating independently of American Express
As of Sep 30, 2014, the company owned, managed and administered
assets worldwide totaled $796.8 billion, up 8% year over year.
Ameriprise is engaged in providing financial planning, products
and services that are customized as solutions for cash and
liquidity, asset accumulation, income, protection, and estate and
wealth transfer needs. Its client list comprises individuals,
businesses and institutions. As of Sep 30, 2014, the company had a
network of around 10,000 financial advisors and registered
Ameriprise operates primarily through 5 major segments:
The Advice & Wealth Management segment provides financial
planning and advice, as well as full service brokerage and banking
services, primarily to retail clients through the company's
affiliated financial advisors. Its affiliated advisors utilize a
diversified selection of both proprietary and non-proprietary
products to help clients meet their financial needs.
The Asset Management segment provides investment advice and
investment products to retail and institutional clients. Its
subsidiary, Columbia Management, principally provides U.S. domestic
products and services, and another subsidiary, Threadneedle Asset
Management Holdings S rl and its affiliates primarily provide
international investment products and services. The U.S. domestic
retail products are largely distributed through its Advice &
Wealth Management segment, and also through unaffiliated advisors.
International retail products are primarily distributed through
third parties. Institutional clients are served directly by
RiverSource and Threadneedle personnel.
The Annuities segment provides RiverSource Life variable and
fixed annuity products to retail clients, primarily distributed
through the company's affiliated financial advisors, and to the
retail clients of unaffiliated advisors and firms through
The Protection segment provides a variety of protection products
to address the protection and risk-management needs of the retail
clients, including life, disability income and property-casualty
insurance, primarily distributed through the affiliated financial
Ameriprise realizes net investment income on corporate level
assets from its Corporate & Other segment. This includes excess
capital held in RiverSource Life and other unallocated equity and
revenues from various investments, as well as unallocated corporate
Since its inception, Ameriprise has grown significantly through
acquisitions, sales and spin-offs. Late in 1990, the company
expanded its offering of mutual funds of other companies to provide
retail clients with a more comprehensive set of products and
services. In 2003, Ameriprise acquired Threadneedle to enlarge its
Asset Management business. In 2006, the company divested its
defined contribution record-keeping business.
In 2008, Ameriprise acquired H&R Block Financial Advisors
Inc., Brecek & Young Advisors Inc. and J. & W. Seligman
& Co. Incorporated, each of which further expanded the retail
distribution and asset management capabilities of the company.
In 2010, Ameriprise acquired the long-term asset management
business of Columbia Management Group, a unit of the Bank of
America, for $927 million.
In 2011, Ameriprise sold its independent broker-dealer business
unit Securities America Financial Corp. and its subsidiaries to
Miami-based Ladenburg Thalmann Financial Services Inc. for $150
In 2013, Ameriprise completed the conversion of Ameriprise Bank,
FSB, a federal savings bank subsidiary, to Ameriprise National
Trust Bank a limited powers national trust bank.
Ameriprise Financial, Inc. (AMP): Read the Full
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