We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (17,774)
  • Industry Conferences (3)
  • Industry Job Openings (3)
  • Moore on the Market (207)
  • Negative Media (139)
  • Positive Media (73)
  • Sheryl's Articles (656)
  • Wink's Articles (265)
  • Wink's Inside Story (238)
  • Wink's Press Releases (99)
  • Blog Archives

  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • May 2008
  • February 2008
  • August 2006
  • A.M. Best Affirms Credit Ratings of Ameriprise Financial, Inc. and Its Subsidiaries

    October 1, 2017 by Best's News Service

    FOR IMMEDIATE RELEASE

    OLDWICK – SEPTEMBER 28, 2017
    A.M. Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa-” of RiverSource Life Insurance Company (Minneapolis, MN) and its wholly owned subsidiary, RiverSource Life Insurance Co. of New York (Albany, NY). A.M. Best also has affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a+” of IDS Property Casualty Insurance Company (IDS) and its wholly owned, fully reinsured subsidiary, Ameriprise Insurance Company (both domiciled in De Pere, WI). Together, these companies represent the key life/health and property/casualty insurance subsidiaries of Ameriprise Financial, Inc. (Ameriprise) (headquartered in Minneapolis, MN) [NYSE: AMP]. Concurrently, A.M. Best has affirmed the Long-Term ICR of “a-” and the existing Long-Term Issue Credit Ratings (Long-Term IR) of Ameriprise. The outlook of these Credit Ratings (ratings) is stable.

    The ratings of the life/health companies primarily reflect their strong risk-adjusted capital positions, favorable operating results, effective hedging programs, strong market positions and brand recognition. Ameriprise continues to benefit from its strong fee-based business, which has led to favorable operating earnings in recent periods due to favorable equity markets. The ratings also consider Ameriprise’s broad multi-platform network of financial advisers and well-developed enterprise risk management (ERM) program. Along with its hedging program, Ameriprise’s current variable annuity (VA) products offer relatively modest guarantees which help to reduce the company’s VA guarantee risks. In addition, the use of permitted practices available in Minnesota on VA statutory hedge accounting will better align reported hedge gains (losses) to changes in VA reserves. At the holding company level, Ameriprise maintains moderate financial leverage of approximately 32% with solid interest coverage as of second quarter 2017. Both measures are within A.M. Best’s guidelines for Ameriprise’s current ratings.

    A.M. Best notes that Ameriprise’s earnings remain highly correlated to movements in interest rates and equity markets. More than two-thirds of Ameriprise’s admitted assets are in separate accounts that are susceptible to sizable equity market declines due to reduced fee income. Operating margins also are likely to be negatively affected should the current low interest rate environment persist, particularly in the annuity and long-term care insurance lines of business. In addition, Ameriprise may continue to experience net outflows in its annuity and asset management businesses due to uncertainty in the financial markets and competition in the annuity and mutual fund business lines. Although A.M. Best remains concerned for potential earnings erosion, this concern is somewhat mitigated by Ameriprise’s robust ERM practices that measure its key risks to ensure decisions are made that will enhance its overall business profile and performance.

    The ratings of IDS and its reinsured subsidiary, Ameriprise Insurance Company, are based on the consolidated operating results and financial positions that reflect their contribution to Ameriprise through diversification of risks and earnings, expanded product offerings to affinity partners and tax benefits from their municipal bond portfolio. However, operating performance has declined over the most recent five-year period, necessitating strong capital infusions to maintain the companies’ risk-adjusted capitalization. The companies reported overall operating losses are primarily due to deteriorating underwriting performance that resulted from adverse prior-year loss reserve development and weather-related catastrophe losses that exceeded the company’s projections. The companies have taken a number of steps to improve reserving processes and for the first time in the most recent five-year period, reported favorable prior year loss reserve development in 2016. Other recent measures reduce the impact from weather-related catastrophe losses including revising and enhancing its reinsurance program, actively reducing its exposure in severe convective storm states, increasing wind/hail deductibles and increasing the number of dedicated field catastrophe adjusters.

    The following Long-Term IRs have been affirmed:

    Ameriprise Financial, Inc.

    — “a-” on $300 million 7.30% senior unsecured notes, due 2019

    — “a-” on $750 million 5.35% senior unsecured notes, due 2020

    — “a-” on $750 million 4.00% senior unsecured notes, due 2023

    — “a-” on $550 million 3.70% senior unsecured notes, due 2024

    — “a-” on $500 million 2.875% senior unsecured notes, due 2026

    The following indicative Long-Term IRs have been affirmed under the current shelf registration:

    Ameriprise Financial, Inc.

    — “a-” on senior unsecured debt

    — “bbb+” on subordinated debt

    — “bbb” on preferred stock

    Ameriprise Capital Trust I, II, III and IV

    — “bbb” on trust preferred securities

    This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

    A.M. Best is the world’s oldest and most authoritative insurance rating and information source.

    Originally Posted at AM Best on September 28, 2017 by Best's News Service.

    Categories: Industry Articles
    currency