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A.M. Best Affirms Credit Ratings of IDS Property Casualty Insurance Company and Its Subsidiary


A.M. Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of "a+" of IDS
Property Casualty Insurance Company (IDS) and its wholly owned, fully
reinsured subsidiary, Ameriprise Insurance Company (collectively
referred to as Ameriprise P&C) (De Pere, WI). Together, these companies
represent the key property/casualty insurance subsidiaries of Ameriprise
Financial, Inc. (Ameriprise) (headquartered in Minneapolis, MN)
(NYSE:AMP). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Ameriprise P&C's balance sheet strength, which A.M.
Best categorizes as very strong, as well as its marginal operating
performance, limited business profile and appropriate enterprise risk
management (ERM).

The balance sheet strength is derived from risk-adjusted capitalization
at the strongest level, which benefits from a high credit quality
investment portfolio and comprehensive reinsurance program, but is
partially offset by generally adverse prior-year loss reserve
development patterns observed in recent years. Ameriprise P&C had to
rely on capital contributions totaling $397 million from parent company
Ameriprise in the most recent five-year period to grow policyholder
surplus and maintain risk-adjusted capitalization levels.

Operating performance is considered marginal, as evidenced by Ameriprise
P&C's five-year average total return on revenue and equity measures,
which are negative and compare unfavorably with the averages for the
private passenger standard automobile and homeowners composite.
Underwriting losses have been impacted negatively by rising loss costs,
adverse loss reserve development and significant weather-related losses.

Ameriprise P&C's business profile is considered limited due to the
concentration of business derived from its affinity relationship with
Costco Wholesale Corporation, which accounted for 72% of total earned
premiums in 2017. Geographic concentration also exists as 33% of direct
premiums written in 2017 were derived from California. The balance of
Ameriprise P&C's premiums are well-diversified, with direct writings in
43 states and the District of Columbia. Ameriprise P&C's low-cost
structure as a direct writer also provides the companies with an
inherent underwriting advantage compared with many of its personal lines
peers. ERM is considered appropriate for the companies' size and
complexity of its underwriting, investment and other risks based on
their ERM framework and controls.

The ratings receive enhancement based on the companies' strategic
importance to Ameriprise, providing diversification of risks and
earnings and access to affinity partners to whom their wealth advisers
can market additional financial products. Ameriprise continues to
provide explicit financial support to Ameriprise P&C, as well as
investment and ERM services, governance and oversight and resources for

This press release relates to Credit Ratings that have been published
on A.M. 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 A.M. Best's
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases

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