Ameriprise (AMP) Reaffirms Solid Liquidity Position and Balance Sheet Strength

October 8, 2008 3:16 PM EDT

Ameriprise Financial (NYSE: AMP) today announced that as of September 30, 2008, the company had more than $4 billion of cash and cash equivalents and is not reliant on commercial paper, bank lines or other short-term institutional funding for liquidity.

The company expects to continue to generate capital and to have approximately $1 billion in excess capital at the end of 2008 after recognizing impairments in Q3 and allocating capital to previously announced acquisitions.

The company maintains a strong, high-quality balance sheet. During Q308, pretax unrealized losses in the company's $25 billion Available-for-Sale investment portfolio (as of June 30, 2008) increased from $915 million to approximately $1.5 billion. The increase is primarily the result of illiquidity driving increased credit spreads.

The company expects to announce after-tax realized investment losses of $200-$225 million, less than 1% of its investments, primarily related to previously announced investments in Lehman Brothers and Washington Mutual, as well as non-agency residential mortgage-backed securities.

Operating earnings will be negatively impacted by the company's previously disclosed decisions to support the NAV of RiverSource money market funds and clients invested in an unaffiliated money market fund. The company expects its annual Q3 DAC unlocking to benefit operating earnings in the quarter.

The company continues to believe that its business is sound, and it is well positioned to benefit from recently announced acquisitions and to build on its competitive position.

Ameriprise Financial, Inc. provides financial planning, asset management, and insurance services to individuals, businesses, and institutions.

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