A.M. Best Places Financial Strength Rating of IDS Life and Subsidiarie

    Business Editors

    OLDWICK, N.J.--(BUSINESS WIRE)--Feb. 1, 2005--A.M. Best Co. has placed the financial strength rating of A+ (Superior) of IDS Life Insurance Company (IDS Life) (Minneapolis, MN) and its subsidiaries under review with negative implications following today's announcement that its ultimate parent, American Express Company (AXP) (NYSE: AXP), plans to spin off its full ownership of American Express Financial Corporation (AEFC) in a tax-free distribution to AXP shareholders. AEFC is currently the holding company for AXP's financial advisory, insurance and asset management businesses.
    The rating will remain under review until A.M. Best meets with management to discuss the details surrounding the stand-alone organization's strategic and financial plans, including the holding company's capital structure and sources of liquidity, future capitalization levels of the operating subsidiaries as well as the AEFC's potential distribution and branding strategies.
    The financial strength rating of A+ (Superior) has been placed under review with negative implications for IDS Life and its following subsidiaries:

CONTACT: A.M. Best Co. Public Relations: Jim Peavy, 908/439-2200, ext. 5644 james.peavy@ambest.com or Rachelle Striegel, 908/439-2200, ext. 5378 rachelle.striegel@ambest.com or Analysts: Marc Steinberg, 908/439-2200, ext. 5225 marc.steinberg@ambest.com or Andrew Edelsberg, 908/439-2200, ext. 5182 andrew.edelsberg@ambest.com

KEYWORD: NEW JERSEY INDUSTRY KEYWORD: INSURANCE SOURCE: A.M. Best Co.

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