Back to top

Analyst Blog

A.M. Best Co. has reiterated its ratings for Ameriprise Financial, Inc. (AMP - Analyst Report) and its insurance wings. The rating agency has maintained the issuer credit ratings (ICR) of “a-” and reaffirmed the company’s existing debt ratings.

The agency has also reaffirmed the ratings for Ameriprise’s insurance divisions and their subsidiaries. While the ratings of RiverSource Life Insurance Company were reaffirmed with financial strength rating (FSR) of A+ and ICR of “aa-”, the ratings of IDS Property Casualty Insurance Company (IDS) were maintained at FSR of A and ICRs of “a+”. All the ratings were reaffirmed a stable outlook.

The affirmation of the ratings indicates Ameriprise’s steady capital strength to meet financial commitments; however, it is subject to market risks and volatility. Going forward, the improvement in the interest rate scenario appears to be blurred with the Federal Reserve continuing with its bond purchase plan. Nevertheless, per A.M. Best, the impact of sluggish economy on Ameriprise’s annuity and insurance business will be partially offset as a major portion matures in the near future and therefore can be assigned revised rates.

Though Ameriprise’s statutory premiums from annuity and life and health unit have been declining over the time, particularly due to a drop in its sales, this setback has been counteracted by a change in product mix indicated by a surge in ordinary life insurance sales. Ameriprise has always taken measures to predict and mitigate risks, formulated strategies to hedge GAAP income and economic risk, thereby, resulting in positive statutory operating results.

Ameriprise currently carries a Zacks Rank #4 (Sell). Some better performing financial institutions include GAMCO Investors, Inc. (GBL - Snapshot Report), Affiliated Managers Group Inc. (AMG - Analyst Report) and The Blackstone Group L.P. (BX - Analyst Report). While GAMCO Investors carries a Zacks Rank #1 (Strong Buy), Affiliated Managers Group and The Blackstone Group carry a Zack Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
QIHOO 360 T… QIHU 95.04 +4.95%
PILGRIMS PR… PPC 31.52 +3.72%
WILLIAMS(C)… CWEI 138.97 +3.55%
FLAMEL TECH… FLML 14.02 +3.16%
CALLON PETE… CPE 11.50 +3.14%