Ameriprise Financial Inc.AMP

Morningstar Rating

Stock Research and Analysis

by Alan Rambaldini

Ameriprise uses the expansive distribution force of its retail brokerage to cross-sell a variety of financial products including life insurance and mutual funds to its loyal client base. Although this strategy does create value, we believe that competition Read more

Bulls Say

Ameriprise boasts one of the largest branded advisor networks in the country. The company hoards more than 10% of all certified financial planners in the U.S.

Financial planning is at the core of Ameriprise's client relationships, which allows it to retain clients longer.

Ameriprise offers a flexible operating model that allows advisors to build ownership in their practices. This also contributes to higher client retention.

Ameriprise declined to accept funding from the U.S. Treasury's Troubled Asset Relief Program, which can be seen as a sign of financial strength. Read more

Bears Say

The firm's distribution fees are primarily 12b-1 fees on mutual funds, which have been under scrutiny and could be eliminated or reduced.

Continued losses on disability and previously written long-term care policies could result in reserve increases, which would hurt profitability.

The firm's earnings have been migrating from steadier insurance to more-cyclical asset management products, making Ameriprise especially susceptible to an economic and/or market downturn.

Warren Buffett has sold off all of the Ameriprise shares that Berkshire Hathaway BRK.B acquired through Ameriprise's spin-off from American Express. Read more

Strategy

Financial plans are the bedrock of Ameriprise's client relationships. The firm is moving upstream to target the mass affluent market (investable assets of $100,000 or more), with a particular focus on Read more

Management

Ameriprise's overall stewardship is good, but we feel there is room for improvement. James Cracchiolo has been chairman and CEO of Ameriprise Financial since its separation from American Express AXP in September 2005. Previously, he held various executive Read more

Profile

Ameriprise Financial, spun off from American Express in 2005, offers financial planning, brokerage, banking, and retirement products along with life and disability insurance. Read more

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