Ameriprise Financial is a company that offers several different fiscal merchandises along with advice. It used to be a portion of American Express until in 2005 when it split away. The company holds more than $ 600 billion in managed, administered and owned assets. Their chief service is through the 100s of fiscal contrivers used to supply retirement-focused advice.
Industry: Asset Management
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Headquarterss: Ameriprise Financial, Inc.
55 Ameriprise Financial Center
Minneapolis, Minnesota 55474
Website Address: hypertext transfer protocol: //www.ameriprise.com/
Chairman of the Board of Directors: James M. Cracchiolo
Chief Executive Officer: James M. Cracchiolo
Ticker = AMP
Traded on the NYSE
Recent Price 55.03 on Nov 5
52 Week Low and High = 34.68 – 55.06
Chairman ‘s Letter to Shareholders Summary
Ameriprise has used the same planning attack that has been used for the last 115 old ages to acquire through the hard times.
Generating Solid Consequences in a Difficult Year
Ameripise owned, managed and administered assets declined to $ 354 billion at the terminal of the first one-fourth of 2009. Entire assets grew to $ 458 billion at year-end, a 23 per centum addition from the anterior twelvemonth. For the twelvemonth, we generated net grosss of $ 7.8 billion, net income of $ 722 million, diluted net incomes per portion of $ 2.95 and return on equity of 9.3 per centum
Standing behind clients
The adviser to client relationship is what defines the trade name. Client and advisor satisfaction and keeping rates remained strong, and we grew our core client base. In 2009, 500 advisers chose to travel their patterns to Ameriprise. In November of 2008, they finished the acquisition of H & A ; R Block.
Meeting Clients Evolving Needs
They offer a broad scope of merchandise picks to function their 4 corners of fiscal planning: hard currency and liabilities, investings, insurance, and revenue enhancement and estate planning. Universal Life Insurance portion more than doubled in 2009 which helped countervail slower variable cosmopolitan life insurance gross revenues.
A Transformational Opportunity
Asset direction requires a big graduated table. Ameriprise was able to get Columbia Management, a long term plus direction company. This dealing will add about $ 186 billion in assets. This besides allowed for a five twelvemonth understanding with Bank of America. The house broad assets reached a sum of $ 326 billion, a 23 per centum addition when compared to the old twelvemonth.
Reinforcing Our Strong Financial Foundation
Ameriprise was one of the first life insurance companies to travel back into a net unfulfilled addition place, stoping the twelvemonth with a $ 686 million net unfulfilled addition. They had a debt-to-total capital ratio of 19.5 per centum
Auditor ‘s Report and System of Internal Controls
The company ‘s most powerful group is the board of managers. Under them are several different commissions. The different commissions are: an Audit Committee, a Nominating and Governance Committee, and a Compensation and Benefits Committee. The members of each board are wholly independent as defined by the New York Stock Exchange. Each commission has its ain charter that defines what their intent is and what is expected of them. The audit commission has several different intents such as: devising certain fiscal statements are right, doing certain the company is utilizing legal patterns and follows the codification of behavior, doing certain the independent hearers are qualified, and to fix the study for the SEC. The commission ‘s president is William H. Turner along with Robert F. Sharpe, Jr. , H. Jay Sarles, and Warren D. Knowlton as members. For the 2009 one-year study, the company used Ernst and Young as their independent hearers. They found that the study was accurate and followed all the guidelines and ordinances.
An Article About Ameriprise
The article I chose is titled, “ Ameriprise Beats Substantially ” featured in the Yahoo Finance subdivision. The chief point of the article is how surprisingly good the Ameriprise stock did in the 3rd one-fourth of the twelvemonth. The operating net incomes of $ 1.37 per portion are much greater than the Zacks Consensus Estimate of $ 1.07. Operating net incomes were up 31 % compared to the old twelvemonth ‘s one-fourth. Owned, managed and administered assets increased 48 % chiefly due to the acquisition of Columbia Management. The website reference can be found in the plants cited subdivision
Working Capital: 11,665-2,392=9273
Current ratio: 11,665/ 2,392=4.88
Debt to entire assets ratio: .91
Net incomes per portion: $ 1.32
Price net incomes ratio: 13.3
Payout Ratio: 17 %
Net income border ratio: 13.96 %
Free hard currency flow: $ 565 Million
A horizontal analysis is utile when analyzing one specific point in a study and seeing how it changes from each period. The point is merely compared with itself and non the study as a whole. By making this, it can so be compared to the remainder of the study to see how much one point is altering in relationship to another. A perpendicular analysis creates a per centum of another point. So it can demo how the per centum of a individual point is lending to the expansive sum. Each one has its ain benefits and can be used to calculate out different things. The figure one thing I noticed in my observations is the drastic alterations that occurred. However, these are no surprise sing one of the largest recessions in recent history besides occurred in the same clip period. The charts can be found in the appendix.
Statement of Cash Flows Information
Increase ( Decrease )
Cash flows from operating activities
( 28 )
( 1,464 )
Cash flows from puting activities
( 417 )
( 1,217 )
Cash flows from funding activities
( 787 )
Increase / Decrease in Cash
( 568 )
Get downing Cash Balance
( 568 )
Ending Cash Balance
During the current twelvemonth, funding activities provided the largest sum of hard currency influx with an sum of 649 million dollars. Cash flows from puting activities were the beginning for the largest sum of hard currency escape in the current twelvemonth and are the same for the old twelvemonth. Because of the monolithic recession, there is no surprise that the company lost a important sum of money in 2008. It is surprising that funding was their chief beginning of hard currency flow sing it had such a negative impact in the old twelvemonth
Intercompany Comparative Comparison
Comparisons are needed to make up one’s mind if a company is truly making good or merely looking to make so. A company may be making good but that does non intend anything sing that the full market may be traveling up. The company may be at low terminal of those that are lifting significance there are other companies of the same type that may be making better but you would ne’er cognize unless you compare them. Ameriprise is making well better than all of its rivals. Over the past twelvemonth, the mean addition in the market has been 9.75 % and Ameriprise has increased 38.36 % .
Six Month Comparison
Ameriprise S & A ; P 500 Index Dow Jones Industrial Average Charles Schwab Corp
Principal Financial Group Inc.
Decision and Lessons Learned
Overall, I think the company is making really good. With the stocks steadily mounting since the beginning of the recession, it seems that shortly it will hold reached the companies old all-time high. I would loan money to this company ; one ground being the fact that their chief concern focal point is the direction of money. Another ground I would loan money to them is because of their ability to resile back from the recession where other companies have failed to make so therefore far. I would work for this company since my pa is presently an adviser. Since he is happy with his occupation, I assume I would be excessively. One of the things I learned is the manner a company ‘s internal controls work ; such as how to much an executive can acquire paid and the bounds to their payments. Equally far as I could state, the company looks really trusty. Of class, this is precisely what they would desire me to believe so I would be more inclined to put in their company.