AM Best Affirms Credit Ratings of Ameriprise Financial, Inc. and Its Subsidiaries
03 Novembro 2023 - 1:16PM
Business Wire
AM Best has affirmed the Financial Strength Rating (FSR)
of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term
ICR) of “aa-” (Superior) of RiverSource Life Insurance Company
(Minneapolis, MN) and its wholly owned subsidiary, RiverSource Life
Insurance Co. of New York (Albany, NY). These companies represent
the key life/health (L/H) insurance subsidiaries of Ameriprise
Financial, Inc. (Ameriprise) (headquartered in Minneapolis, MN)
[NYSE: AMP] and are collectively known as Ameriprise Financial
Group. Concurrently, AM Best has affirmed the FSR of A (Excellent)
and the Long-Term ICR of “a+” (Excellent) of Ameriprise Captive
Insurance Company (ACIC) (Burlington, VT), a property/casualty
(P/C) subsidiary of Ameriprise. The outlook of these Credit Ratings
(ratings) is stable. In addition, AM Best has affirmed the
Long-Term ICR of “a-” (Excellent) and the existing Long-Term Issue
Credit Ratings (Long-Term IRs) of Ameriprise. The outlook of these
ratings is stable. Please see below for a detailed listing of the
Long-Term IRs.
The ratings of Ameriprise Financial Group reflect its balance
sheet strength, which AM Best assesses as very strong, as well as
its strong operating performance, favorable business profile and
appropriate enterprise risk management (ERM).
The balance sheet metrics for the RiverSource-grouped companies
remain supportive of the very strong balance sheet strength
assessment. On an enterprise level, the group has taken various
steps to de-risk the balance sheet from interest rate volatility,
and this has been accomplished primarily in the medium term through
reinsurance. AM Best views the capabilities of Ameriprise’s mature
risk management program supportive of this strategy. The group’s
operating metrics include a return on equity well above industry
averages at nearly 50% (excluding unlocking) and margins on a
statutory reporting basis that reflect the strength of the group’s
operating performance. Distribution capabilities are robust
throughout the group’s adviser channel, leaning on an innovative
delivery process and achieving operating efficiencies through its
investments in technology. Ameriprise’s life and annuity business
is complemented by the enterprise’s larger asset management
businesses in the United States and internationally. As a group,
the RiverSource companies not only are diversified geographically
across the United States, but also offer investment services in
addition to life and annuity products.
The ratings of ACIC reflect its balance sheet strength, which AM
Best assesses as very strong, as well as its strong operating
performance, limited business profile and appropriate enterprise
risk management (ERM). ACIC benefits from rating enhancement due to
its strategic importance as a single-parent captive insurance
provider.
AM Best assesses ACIC’s business profile as limited due to its
narrow market focus as a single-parent captive serving just one
customer (its parent) for a limited amount of exposure. ACIC
provides various coverages to its parent in the form of errors and
omissions policies, a workers’ compensation deductible
reimbursement policy, fidelity bonds and property terrorism
(conventional and nuclear, biological, chemical or radiological).
The captive has generated strong operating performance as
demonstrated by its five-year average pre-tax return on revenue and
equity ratios that compare favorably with the averages for AM
Best’s commercial casualty composite. Additionally, ACIC benefits
from a very low expense ratio.
The following Long-Term IRs have been affirmed with stable
outlooks:
Ameriprise Financial, Inc. — -- “a-” (Excellent) on $550 million
3.70% senior unsecured notes, due 2024 -- “a-” (Excellent) on $500
million 3.00% senior unsecured notes, due 2025 -- “a-” (Excellent)
on $500 million 2.875% senior unsecured notes, due 2026 -- “a-”
(Excellent) on $500 million 4.50% senior unsecured notes, due 2032
-- “a-” (Excellent) on $750 million 5.15% senior unsecured notes,
due 2033
The following indicative Long-Term IRs have been affirmed with
stable outlooks under the current shelf registration:
Ameriprise Financial, Inc.— -- “a-” (Excellent) on senior
unsecured debt -- “bbb+” (Good) on subordinated debt -- “bbb”
(Good) on preferred stock
AM Best remains the leading rating agency of alternative risk
transfer entities, with more than 200 such vehicles rated in the
United States and throughout the world. For current Best’s Credit
Ratings and independent data on the captive and alternative risk
transfer insurance market, please visit
www.ambest.com/captive.
This press release relates to Credit Ratings that have been
published on AM 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 AM Best’s Recent Rating
Activity web page. For additional information regarding the use and
limitations of Credit Rating opinions, please view Guide to Best's
Credit Ratings. For information on the proper use of Best’s Credit
Ratings, Best’s Performance Assessments, Best’s Preliminary Credit
Assessments and AM Best press releases, please view Guide to Proper
Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
Copyright © 2023 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Wayne Kaminski Senior Financial Analyst-L/H +1
908 882 1916 wayne.kaminski@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Fred Eslami Associate Director-P/C +1 908 882
1759 fred.eslami@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com
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