Some securities analysts are skeptical about the near-term prospects for investments in Ameriprise Financial Inc.[@@]
American Express Company, New York, is in the process of converting Ameriprise – the old American Express Financial Advisors == into a stand-alone company.
Ameriprise, Minneapolis, will start out with a network of 10,000 “branded advisors.” Many of those advisors have strong relationships with highly affluent clients.
Standard & Poor’s, New York, says it will be adding Ameriprise to its flagship S&P 500 Index.
But Suneet Kamath, a life insurance analyst at Sanford C. Bernstein for Bernstein Research, made much the same point when he wrote that the fact Ameriprise generated close to 60% of its 2004 revenues from life insurance businesses would portend an ROE in the range just approaching the double digits, rather than the nearly 50% higher range that is the norm for more investment-oriented financial services businesses.