A.M. Best Affirms Ratings of Ameriprise Group and Its Members

A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit ratings of “a” of Ameriprise Group (Ameriprise) and its members. The outlook for all ratings is stable.

The group ratings are based on the consolidated operating results and financial positions of IDS Property Casualty Insurance Company (IDS) and its wholly owned subsidiary, Ameriprise Insurance Company. IDS is a wholly owned subsidiary of Ameriprise Financial Inc. (Delaware) [NYSE: AMP]. All companies are domiciled in De Pere, WI, except where specified.

The ratings reflect Ameriprise’s solid risk-adjusted capital position and favorable operating results over several years. Ameriprise’s strong capital position is reflective of its conservative investment risk profile and favorable loss reserve development trends.

Operating results for the group have been driven by steady underwriting income combined with solid investment income over the last several years.

Although IDS no longer benefits from the profitable credit card and travel related business that it formerly assumed from AMEX Assurance Company, its results remain favorable as reflected in the group’s combined ratios. Also contributing to Ameriprise’s favorable operating results have been a low-cost, direct marketing strategy and strong synergies and cross-marketing opportunities with the parent company and affinity partnerships.

Partially offsetting these positive factors is Ameriprise’s inherent risk associated with the relatively significant business growth it experienced over the last five years.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

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