A.M. Best Affirms Ratings of Ameriprise and Its Subsidiaries.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A+ (Superior) and the issuer credit ratings (ICR) of "aa-" of IDS Life Insurance Company (IDS Life) (Minneapolis, MN) and its wholly-owned subsidiaries. A.M. Best has also affirmed the ICR of "a-" and the debt ratings of IDS Life's publicly-traded holding company, Ameriprise Financial Inc. (Ameriprise) (NYSE: AMP) Minneapolis, MN). The outlook for all ratings is negative. (See link below for a detailed listing of all ratings.)

On September 30, 2005, The American Express Company (AXP) (NYSE: AXP) completed its spin-off of American Express Financial Corporation (AEFC) in a tax-free distribution to AXP shareholders. As part of the spin-off, AEFC was re-branded as Ameriprise Financial Inc. and includes the financial advisory, insurance and asset management businesses formerly under American Express Financial Advisors. Ameriprise's annuity, life and health insurance and asset management products are branded RiverSource under its dual brand strategy.

AXP's contribution of $1.1 billion allowed Ameriprise to contribute $650 million of capital to the IDS Life companies, bringing capital in line with the current ratings. In addition, AXP agreed to provide transition services through the third quarter of 2007. While acknowledging the progress made to date, the negative outlook reflects A.M. Best's continuing concerns with execution risks associated with the ongoing re-branding of the enterprise, while maintaining its existing distribution force after the bonus retention period, although to date, bonus programs have resulted in high client retention and low advisor attrition.

The outlook also reflects the lower earnings due to significant separation costs, as well as projected separation costs in 2006 and 2007, which will affect profitability. These non-recurring separation expenses were fully prefunded by the capital contribution from American Express at separation.

During 2006, AMP will be consolidating and re-branding the IDS Life companies under the RiverSource name. A.M. Best views this favorably as it will free capital and further strengthen the RiverSource brand. However, A.M. Best is concerned with the potential risks, which may remain after financial and service commitments from AXP are no longer available.

For a complete list of IDS Life Insurance Company's and Ameriprise Financial Inc.'s FSRs, ICRs and debt ratings, please visit www.ambest.com/press/062104ids.pdf.

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

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.