Ameriprise Financial

Ameriprise Financial is a diversified financial services company headquartered in Minneapolis, Minnesota. It provides financial planning, asset management, and insurance products to individual and institutional clients primarily in the United States. The company is a component of the S&P 500 and operates through a network of over 10,000 financial advisors.

History

The company traces its origins to the founding of the Investors Syndicate in 1894 by John Tappan in Minneapolis, which initially sold face-amount certificates. For much of the 20th century, it operated as part of the American Express family, known as IDS Financial Services after its 1984 acquisition. In 2005, the firm was spun off from American Express in one of the largest initial public offerings of that year, adopting the Ameriprise Financial name. Key milestones since its independence include the 2010 acquisition of the Columbia Management business from Bank of America and the 2018 purchase of the broker-dealer and advisory network of BMO Harris Bank.

Business segments

Ameriprise operates through five primary business segments. The **Advice & Wealth Management** segment provides financial planning and advisory services through its franchisee and employee advisors, offering brokerage and banking services. The **Asset Management** segment, branded as Columbia Threadneedle Investments, manages investments for individual and institutional clients globally. The **Retirement & Protection Solutions** segment offers annuities, insurance, and employee benefits programs. The **Corporate & Other** segment includes run-off insurance operations and corporate financing activities. The company also maintains a strategic bank holding company, Ameriprise National Trust Bank.

Financial performance

For the fiscal year ending December 2023, Ameriprise reported GAAP net revenues of approximately $15.8 billion, with a significant portion derived from management and financial advice fees. The company's assets under management and administration totaled $1.4 trillion. It has consistently returned capital to shareholders through dividend increases and share repurchase programs, with its stock trading on the New York Stock Exchange under the ticker AMP. Key financial metrics are closely watched by analysts from firms like J.P. Morgan and Goldman Sachs.

Corporate governance

The company's board of directors is chaired by CEO James M. Cracchiolo, who has led the firm since its spin-off. Other notable board members have included executives with experience at institutions like the Federal Reserve Bank of New York and General Mills. Governance practices are detailed in annual proxy statements filed with the U.S. Securities and Exchange Commission, and the company's audit committee works with independent auditor PricewaterhouseCoopers. The corporate headquarters remains in the IDS Center, a landmark tower in downtown Minneapolis.

Controversies and legal issues

Like many major financial institutions, Ameriprise has faced regulatory scrutiny and legal challenges. In 2015, the U.S. Securities and Exchange Commission charged an Ameriprise subsidiary with failing to disclose conflicts of interest related to steering clients into more expensive mutual fund share classes. The company settled for $30 million without admitting or denying the findings. It has also been subject to FINRA arbitration cases concerning sales practices of certain variable annuity and private placement products. In 2022, the company reached a settlement with the SEC over allegations of recordkeeping failures related to off-channel communications by employees.

Category:Financial services companies of the United States Category:Companies listed on the New York Stock Exchange Category:Companies based in Minneapolis Category:Companies established in 1894