What changed in this filing

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Item 1. Financial Statements

2022-05-02 compared with 2021-11-09 · 348 added, 722 removed, 1585 unchanged (40% of the section changed)

1 unchanged sentence

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions, except per share amounts)

14 unchanged sentences

Total expenses 2,732 2,857

Pretax income (loss) 1,270 ( 184 ) 2,484 1,641

Income tax provision (benefit) 239 ( 44 ) 425 284

Net income (loss) $ 1,031 $ ( 140 ) $ 2,059 $ 1,357

Pretax income 923 493

Income tax provision 162 56

Net income $ 761 $ 437

Earnings per share

4 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions)

Net income (loss) $ 1,031 $ ( 140 ) $ 2,059 $ 1,357

Net income $ 761 $ 437

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustment

( 22 ) 27 ( 21 ) ( 14 )

Net unrealized gains (losses) on securities ( 853 ) ( 340 )

Net unrealized gains (losses) on derivatives

Defined benefit plans

1 unchanged sentence

( 898 ) ( 312 )

Total comprehensive income (loss) $ 670 $ ( 18 ) $ 1,529 $ 1,611

Total comprehensive income $ ( 137 ) $ 125

See Notes to Consolidated Financial Statements.

1 unchanged sentence

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

(in millions, except share amounts)

7 unchanged sentences

Receivables (allowance for credit losses:

16,193 16,205

Receivables of consolidated investment entities, at fair value 22 17

39 unchanged sentences

(in millions, except per share data)

Balances at July 1, 2020

120,607,501 $ 3 $ 8,622 $ 15,510 $ ( 18,029 ) $ 394 $ 6,500

Comprehensive income (loss):

Net income (loss) — — — ( 140 ) — — ( 140 )

Other comprehensive income, net of tax — — — — — 122 122

Total comprehensive loss ( 18 )

Dividends to shareholders — — — ( 129 ) — — ( 129 )

Repurchase of common shares ( 2,215,753 ) — — — ( 341 ) — ( 341 )

Share-based compensation plans 239,861 — 55 — — — 55

Balances at September 30, 2020

118,631,609 $ 3 $ 8,677 $ 15,241 $ ( 18,370 ) $ 516 $ 6,067

Balances at July 1, 2021

114,297,434 $ 3 $ 9,049 $ 16,057 $ ( 19,883 ) $ 460 $ 5,686

Comprehensive income (loss):

Net income — — — 1,031 — — 1,031

Other comprehensive loss, net of tax — — — — — ( 361 ) ( 361 )

Total comprehensive income 670

Dividends to shareholders — — — ( 133 ) — — ( 133 )

Repurchase of common shares ( 2,236,129 ) — — — ( 586 ) — ( 586 )

Share-based compensation plans 336,282 — 69 — 1 — 70

Balances at September 30, 2021

112,397,587 $ 3 $ 9,118 $ 16,955 $ ( 20,468 ) $ 99 $ 5,707

Balances at January 1, 2021

116,765,613 $ 3 $ 8,822 $ 15,292 $ ( 18,879 ) $ 629 $ 5,867

Cumulative effect of adoption of adoption of current expected credit losses guidance — — — ( 9 ) — — ( 9 )

Comprehensive income:

Net income — — — 437 — — 437

Other comprehensive income, net of tax — — — — — 254 254

Total comprehensive income 1,611

Other comprehensive loss, net of tax — — — — — ( 312 ) ( 312 )

Dividends to shareholders — — — ( 129 ) — — ( 129 )

1 unchanged sentence

Share-based compensation plans 1,812,356 — 160 — 33 — 193

Balances at September 30, 2020

Balances at March 31, 2021

115,988,271 $ 3 $ 8,982 $ 15,600 $ ( 19,400 ) $ 317 $ 5,502

1 unchanged sentence

110,861,010 $ 3 $ 9,220 $ 17,525 $ ( 21,066 ) $ 3 $ 5,685

Comprehensive income:

Net income — — — 761 — — 761

Other comprehensive loss, net of tax — — — — — ( 898 ) ( 898 )

Total comprehensive income 1,529

Dividends to shareholders — — — ( 133 ) — — ( 133 )

1 unchanged sentence

Share-based compensation plans 1,215,195 — 128 — 46 — 174

Balances at September 30, 2021

Balances at March 31, 2022

110,145,970 $ 3 $ 9,348 $ 18,153 $ ( 21,599 ) $ ( 895 ) $ 5,010

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions)

Cash Flows from Operating Activities

$ 2,059 $ 1,357

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

2 unchanged sentences

Share-based compensation

Net realized investment (gains) losses

( 627 ) ( 14 )

Net realized investment gains ( 18 ) ( 65 )

Net trading (gains) losses

Loss from equity method investments

Impairments and provision for loan losses

Net (gains) losses of consolidated investment entities

1 unchanged sentence

Restricted and segregated investments

( 124 ) ( 315 )

Deferred acquisition costs

Policyholder account balances, future policy benefits and claims, net

( 168 ) ( 1,050 )

Derivatives, net of collateral

2 unchanged sentences

Accounts payable and accrued expenses

Current income tax expense (benefit)

( 461 ) ( 163 )

Current income tax, net ( 27 ) 90

Deferred taxes, net 2 ( 115 )

1 unchanged sentence

Net cash provided by (used in) operating activities

409 ( 1,000 )

Cash Flows from Investing Activities

8 unchanged sentences

Purchase of other investments

( 73 ) ( 219 )

Purchase of investments by consolidated investment entities

4 unchanged sentences

Cash paid for written options with deferred premiums

( 314 ) ( 292 )

Cash received from written options with deferred premiums

Cash paid for deposit receivable

( 216 ) ( 3 )

Cash received for deposit receivable

Cash paid for deposit receivables ( 12 ) ( 2 )

Cash received for deposit receivables 134 21

Net cash provided by (used in) investing activities $ ( 1,665 ) $ ( 809 )

( 1,373 ) ( 2,421 )

See Notes to Consolidated Financial Statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions)

2 unchanged sentences

Proceeds from additions

$ 2,004 $ 3,428

Maturities, withdrawals and cash surrenders

17 unchanged sentences

( 541 ) ( 470 )

Exercise of stock options

Borrowings by consolidated investment entities

Borrowings of consolidated investment entities — 797

Repayments of debt by consolidated investment entities

( 757 ) ( 55 )

Net cash provided by (used in) financing activities

10 unchanged sentences

Non-cash investing activity:

Partnership commitments not yet remitted

Investments transferred in connection with reinsurance transaction

Exchange of an investment that resulted in a realized gain and an increase to amortized cost — 17

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

(in millions)

14 unchanged sentences

The foreign operations of Ameriprise Financial, Inc.

are conducted primarily through TAM UK International Holdings Ltd and Ameriprise Asset Management Holdings Singapore (Pte.) Ltd and their respective subsidiaries (collectively, “Threadneedle”).

are conducted primarily through Columbia Threadneedle Investments UK International Limited, TAM UK International Holdings Ltd and Ameriprise Asset Management Holdings Singapore (Pte.) Ltd and their respective subsidiaries (collectively, “Threadneedle”).

The accompanying Consolidated Financial Statements include the accounts of Ameriprise Financial, Inc., companies in which it directly or indirectly has a controlling financial interest and variable interest entities (“VIEs”) in which it is the primary beneficiary (collectively, the “Company”).

3 unchanged sentences

All adjustments made were of a normal recurring nature.

In the first quarter of 2021, the Company recorded an unfavorable out-of-period correction of $ 29 million in other comprehensive income related to defined benefit plans.

In the first quarter of 2020, the Company recorded an unfavorable out-of-period correction of $ 19 million in management and financial advice fees related to performance fees.

The impact of the errors were not material to the current and prior period financial statements.

In the first quarter of 2021, the Company recorded a favorable out-of-period correction of $ 29 million in other comprehensive income related to defined benefit plans.

The impact of the error was not material to the current and prior period financial statements.

The accompanying Consolidated Financial Statements are prepared in accordance with U.S.

2 unchanged sentences

These Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on February 25, 2022 (“2021 10-K”).

On June 2, 2021, the Company filed an application to convert Ameriprise Bank, FSB to a state-chartered industrial bank regulated by the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation.

The Company also filed an application to transition the FSB’s personal trust services business to a new limited purpose national trust bank regulated by the Office of the Comptroller of the Currency.

During the third quarter of 2021, RiverSource Life Insurance Company (“RiverSource Life”), one of the Company’s life insurance subsidiaries, closed on a transaction with Global Atlantic Financial Group’s subsidiary Commonwealth Annuity and Life Insurance Company, effective July 1, 2021, to reinsure approximately $ 7.0 billion of fixed deferred and immediate annuity policies.

As part of the transaction, RiverSource Life transferred $ 7.8 billion in consideration primarily consisting of Available-for-Sale securities, commercial mortgage loans, syndicated loans and cash.

The transaction resulted in a net realized gain of approximately $ 532 million on investments sold.

A similar previously announced transaction with RiverSource Life Insurance Co.

of New York did not receive regulatory approval in time to close by September 30, 2021 and the transaction was terminated by the parties.

On November 8, 2021, the Company completed its previously announced acquisition of the European-based asset management business of BMO Financial Group.

At close, the consideration transferred consisted of £ 615 million (or $ 829 million) for initial price, plus an additional £ 103 million (or $ 138 million) largely associated with a customary adjustment for excess capital surplus that will be accessible over time.

The overall purchase price will continue to be subject to further customary post-close adjustments.

The all-cash transaction will add approximately $ 131 billion of assets under management in EMEA.

The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through the date the financial statements were issued.

Other than the items noted above, no other subsequent events or transactions requiring recognition or disclosure were identified.

No subsequent events or transactions requiring recognition or disclosure were identified.

Recent Accounting Pronouncements

Adoption of New Accounting Standards

Income Taxes – Simplifying the Accounting for Income Taxes

In December 2019, the Financial Accounting Standards Board (“FASB”) updated the accounting standards to simplify the accounting for income taxes.

The update eliminates certain exceptions to:

(1) accounting principles related to intra-period tax allocation to be applied on a prospective basis, (2) deferred tax liabilities related to outside basis differences to be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption, and (3) year-to-date losses in interim periods to be applied on a prospective basis.

The update also amends existing guidance related to situations when an entity receives:

(1) a step-up in the tax basis of goodwill to be applied on a prospective basis, (2) an allocation of income tax expense when members of a consolidated tax filing group issue separate financial statements to be applied on a retrospective basis for all periods presented, (3) interim recognition of enactment of tax laws or rate changes to be applied on a prospective basis, and (4)

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

franchise taxes and other taxes partially based on income to be applied on a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption.

The standard is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted.

The Company adopted the standard on January 1, 2021.

The adoption of this standard had no impact on the Company’s consolidated results of operations and financial condition.

Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB updated the accounting standards related to accounting for credit losses on certain types of financial instruments.

The update replaces the current incurred loss model for estimating credit losses with a new model that requires an entity to estimate the credit losses expected over the life of the asset.

At adoption, the initial estimate of the expected credit losses will be recorded through retained earnings and subsequent changes in the estimate will be reported in current period earnings and recorded through an allowance for credit losses on the balance sheet.

The credit loss model for Available-for-Sale debt securities did not change;

however, the credit loss calculation and subsequent recoveries are required to be recorded through an allowance.

The standard is effective for interim and annual periods beginning after December 15, 2019.

A modified retrospective cumulative adjustment to retained earnings should be recorded as of the first reporting period in which the guidance is effective for loans, receivables, and other financial instruments subject to the new expected credit loss model.

Prospective adoption is required for establishing an allowance related to Available-for-Sale debt securities, certain beneficial interests, and financial assets purchased with a more-than-insignificant amount of credit deterioration since origination.

The Company adopted the standard on January 1, 2020.

The adoption of this update did not have a material impact on the Company’s consolidated results of operations or financial condition.

Intangibles – Goodwill and Other – Internal-Use Software – Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

In August 2018, the FASB updated the accounting standards related to customer’s accounting for implementation costs incurred in a cloud computing arrangement (“CCA”) that is a service contract.

The update requires implementation costs for a CCA to be evaluated for capitalization using the same approach as implementation costs associated with internal-use software.

The update also addresses presentation, measurement and impairment of capitalized implementation costs in a CCA that is a service contract.

The update requires new disclosures on the nature of hosting arrangements that are service contracts, significant judgements made when applying the guidance and quantitative disclosures, including amounts capitalized, amortized and impaired.

The update is effective for interim and annual periods beginning after December 15, 2019, and can be applied either prospectively or retrospectively.

The Company adopted the standard using a prospective approach on January 1, 2020.

The adoption of this update did not have a material impact on the Company’s consolidated results of operations or financial condition.

Intangibles – Goodwill and Other – Simplifying the Test for Goodwill Impairment

In January 2017, the FASB updated the accounting standards to simplify the accounting for goodwill impairment.

The update removes the hypothetical purchase price allocation (Step 2) of the goodwill impairment test.

Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value.

The standard is effective for interim and annual periods beginning after December 15, 2019, and should be applied prospectively with early adoption permitted for any impairment tests performed after January 1, 2017.

The Company adopted the standard on January 1, 2020.

The adoption of this update did not have a material impact on the Company’s consolidated results of operations or financial condition.

Fair Value Measurement – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement

In August 2018, the FASB updated the accounting standards related to disclosures for fair value measurements.

The update eliminates the following disclosures:

(1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy of timing of transfers between levels of the fair value hierarchy, and (3) the valuation processes for Level 3 fair value measurements.

The new disclosures include changes in unrealized gains and losses for the period included in other comprehensive income (“OCI”) for recurring Level 3 fair value measurements of instruments held at the end of the reporting period and the range and weighted average used to develop significant unobservable inputs and how the weighted average was calculated.

The new disclosures are required on a prospective basis;

all other provisions should be applied retrospectively.

The update is effective for interim and annual periods beginning after December 15, 2019.

Early adoption is permitted for the entire standard or only the provisions to eliminate or modify disclosure requirements.

The Company early adopted the provisions of the standard to eliminate or modify disclosure requirements in the fourth quarter of 2018.

The Company adopted the provisions of the standard to include new disclosures on January 1, 2020.

The update did not have an impact on the Company’s consolidated results of operations or financial condition.

Future Adoption of New Accounting Standards

Reference Rate Reform – Expedients for Contract Modifications

In March 2020, the FASB updated the accounting standards to provide optional expedients and exceptions for applying GAAP to contracts, hedging or other transactions that are affected by reference rate reform (i.e., the elimination of LIBOR).

The following expedients are provided for modified contracts whose reference rate is changed:

(1) receivables and debt contracts are accounted for prospectively by adjusting the effective interest rate, (2) leases are accounted for as a continuation of the existing contracts with no reassessments of the lease classification and discount rate or remeasurements of lease payments that otherwise would be required, and

Financial Instruments – Credit Losses – Troubled Debt Restructurings and Vintage Disclosures

In March 2022, the Financial Accounting Standards Board (“FASB”) proposed amendments to Accounting Standard Update No.

2016-13, Financial Instruments—Credit Losses:

Measurement of Credit Losses on Financial Instruments (“Topic 326”).

The update removes the recognition and measurement guidance for Troubled Debt Restructurings (“TDRs”) by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, and modifies the disclosure requirements for certain loan refinancing and restructuring by creditors when a borrower is experiencing financial difficulty.

Rather than applying the recognition and measurement for TDRs, an entity must apply the loan refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan.

The update also requires entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost.

The amendments are to be applied prospectively, but entities may apply a modified retrospective transition for changes to the recognition and measurement of TDRs.

For entities that have adopted Topic 326, the amendments are effective for interim and annual periods beginning after December 15, 2022.

Early adoption is permitted for entities that have adopted Topic 326, including adoption in an interim period.

The adoption of the standard is not expected to have a material impact on the Company’s consolidated results of operations and financial condition.

Business Combinations – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

In October 2021, the FASB updated the accounting standards to require an entity (acquirer) to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue for Contracts with Customers (“Topic 606”).

At the acquisition date, an acquirer is required to account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts.

Generally, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements (if the acquiree prepared financial statements in accordance with GAAP).

The amendments apply to all contract assets and contract liabilities acquired in a business combination that result from contracts accounted for under the principals of Topic 606.

The standard is effective for interim and annual periods beginning after December 15, 2022.

Early adoption is permitted, including adoption in an interim period.

An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of the early application and (2) prospectively to all business combinations that occur on or after the date of initial application.

The adoption of the standard is not expected to have a material impact on the Company’s consolidated results of operations and financial condition.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

(3) an entity is not required to reassess its original conclusion about whether that contract contains an embedded derivative that is clearly and closely related to the economic characteristics and risks of the host contract.

The amendments in this update were effective upon issuance and must be elected prior to December 31, 2022.

When elected, the optional expedients for contract modifications must be applied consistently for all eligible contracts or eligible transactions.

In January 2021, FASB updated the standard to allow an entity to elect to apply the treatment under the original guidance to derivative instruments that use an interest rate for margining, discounting or contract price alignment that will be modified due to reference rate reform but did not qualify under the original guidance.

The Company has not yet applied any of the optional expedients.

The adoption of the standard is not expected to have an impact on the Company’s consolidated results of operations and financial condition.

Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts

21 unchanged sentences

The update requires significant additional disclosures, including disaggregated rollforwards of the liability for future policy benefits, policyholder account balances, market risk benefits, DAC and DSIC, as well as qualitative and quantitative information about expected cash flows, estimates and assumptions.

The standard is effective for interim and annual periods beginning after December 15, 2022, and interim periods within those years.

The standard is effective for interim and annual periods beginning after December 15, 2022.

The standard should be applied to the liability for future policy benefits and DAC and DSIC on a modified retrospective basis and applied to market risk benefits on a retrospective basis with the option to apply full retrospective transition if certain criteria are met.

Early adoption is permitted.

The Company is currently evaluating the impact of the standard on its consolidated results of operations, financial condition and disclosures.

The Company is currently in the process of implementing the standard, including the implementation of controlled measurement and reporting processes.

The Company expects the impact of adopting the standard to be material to its consolidated results of operations and financial condition.

AMERIPRISE FINANCIAL, INC.

2 unchanged sentences

The following tables present revenue disaggregated by segment on an adjusted operating basis with a reconciliation of segment revenues to those reported on the Consolidated Statements of Operations:

Three Months Ended September 30, 2021

Advice & Wealth Management Asset Management Retirement & Protection Solutions Corporate & Other Total Segments Non-operating

Revenue Total

(in millions)

Management and financial advice fees:

Asset management fees:

Retail $ — $ 587 $ — $ — $ 587 $ — $ 587

Institutional — 143 — — 143 — 143

Advisory fees 1,189 — — — 1,189 — 1,189

Financial planning fees 91 — — — 91 — 91

Transaction and other fees 94 57 18 — 169 — 169

Total management and financial advice fees 1,374 787 18 — 2,179 — 2,179

Distribution fees:

Mutual funds 219 70 — — 289 — 289

Insurance and annuity 246 50 104 — 400 — 400

Other products 96 — — — 96 — 96

Total distribution fees 561 120 104 — 785 — 785

Other revenues 46 1 — 1 48 — 48

Total revenue from contracts with customers 1,981 908 122 1 3,012 — 3,012

Revenue from other sources (1)

70 7 712 112 901 ( 605 ) 296

Total segment gross revenues 2,051 915 834 113 3,913 ( 605 ) 3,308

Banking and deposit interest expense ( 3 ) — — — ( 3 ) — ( 3 )

Total segment net revenues 2,048 915 834 113 3,910 ( 605 ) 3,305

Intersegment revenues ( 261 ) ( 12 ) ( 122 ) — ( 395 ) ( 7 ) ( 402 )

Total net revenues $ 1,787 $ 903 $ 712 $ 113 $ 3,515 $ ( 612 ) $ 2,903

Nine Months Ended September 30, 2021

Three Months Ended March 31, 2022

Advice & Wealth Management Asset Management Retirement & Protection Solutions Corporate & Other Total Segments Non-operating

21 unchanged sentences

Total segment net revenues 2,042 1,017 772 116 3,947 63 4,010

Intersegment revenues ( 777 ) ( 39 ) ( 356 ) ( 1 ) ( 1,173 ) ( 13 ) ( 1,186 )

Elimination of intersegment revenues ( 228 ) ( 12 ) ( 112 ) — ( 352 ) ( 3 ) ( 355 )

Total net revenues $ 1,814 $ 1,005 $ 660 $ 116 $ 3,595 $ 60 $ 3,655

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Three Months Ended September 30, 2020

Advice & Wealth Management Asset Management Retirement & Protection Solutions Corporate & Other Total Segments Non-operating

Revenue Total

(in millions)

Management and financial advice fees:

Asset management fees:

Retail $ — $ 466 $ — $ — $ 466 $ — $ 466

Institutional — 122 — — 122 — 122

Advisory fees 907 — — — 907 — 907

Financial planning fees 81 — — — 81 — 81

Transaction and other fees 89 47 14 — 150 — 150

Total management and financial advice fees 1,077 635 14 — 1,726 — 1,726

Distribution fees:

Mutual funds 186 59 — — 245 — 245

Insurance and annuity 202 45 75 — 322 — 322

Other products 91 — — — 91 — 91

Total distribution fees 479 104 75 — 658 — 658

Other revenues 44 — 5 — 49 — 49

Total revenue from contracts with customers 1,600 739 94 — 2,433 — 2,433

Revenue from other sources (1)

77 — 687 132 896 27 923

Total segment gross revenues 1,677 739 781 132 3,329 27 3,356

Banking and deposit interest expense ( 10 ) — — — ( 10 ) — ( 10 )

Total segment net revenues 1,667 739 781 132 3,319 27 3,346

Intersegment revenues ( 219 ) ( 13 ) ( 110 ) — ( 342 ) ( 1 ) ( 343 )

Total net revenues $ 1,448 $ 726 $ 671 $ 132 $ 2,977 $ 26 $ 3,003

Nine Months Ended September 30, 2020

Three Months Ended March 31, 2021

Advice & Wealth Management Asset Management Retirement & Protection Solutions Corporate & Other Total Segments Non-operating

21 unchanged sentences

Total segment net revenues 1,879 828 787 139 3,633 99 3,732

Intersegment revenues ( 649 ) ( 39 ) ( 319 ) 1 ( 1,006 ) ( 5 ) ( 1,011 )

Elimination of intersegment revenues ( 250 ) ( 13 ) ( 116 ) — ( 379 ) ( 3 ) ( 382 )

Total net revenues $ 1,629 $ 815 $ 671 $ 139 $ 3,254 $ 96 $ 3,350

1 unchanged sentence

The amounts primarily consist of revenue associated with insurance and annuity products or financial instruments.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following discussion describes the nature, timing, and uncertainty of revenues and cash flows arising from the Company’s contracts with customers on a consolidated basis.

6 unchanged sentences

Asset management fees are accrued, invoiced and collected on a monthly or quarterly basis.

The Company’s asset management contracts for Open Ended Investment Companies (“OEICs”) in the United Kingdom (“U.K.”), Société d'Investissement à Capital Variable (“SICAVs”) and other pooled investments sponsored by the Company in Europe, typically include performance obligations for asset management and fund distribution services.

The Company’s asset management contracts for Open Ended Investment Companies (“OEICs”) in the United Kingdom (“U.K.”) and Société d'Investissement à Capital Variable (“SICAVs”) in Europe include performance obligations for asset management and fund distribution services.

The amounts received for these services are reported as management and financial advice fees.

5 unchanged sentences

Advisory Fees

The Company earns revenue for performing investment advisory services for certain brokerage customers’ discretionary and non-discretionary managed accounts.

The Company earns revenue for performing investment advisory services for certain brokerage customer’s discretionary and non-discretionary managed accounts.

The revenue is earned based on a contractual fixed rate applied, as a percentage, to the market value of assets held in the account.

1 unchanged sentence

Advisory fees are billed on a monthly basis on the prior month end assets.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Financial Planning Fees

11 unchanged sentences

The revenue is recognized when it is probable that a significant reversal will not occur that is generally each month end as the advisory account balance uncertainty is resolved.

Contract liabilities for financial planning fees, which are included in other liabilities in the Consolidated Balance Sheets, were $ 144 million and $ 146 million as of September 30, 2021 and December 31, 2020, respectively.

Contract liabilities for financial planning fees, which are included in Other liabilities, were $ 155 million and $ 157 million as of March 31, 2022 and December 31, 2021, respectively.

The Company pays sales commissions to advisors when a new financial planning contract is obtained or when an existing contract is renewed.

1 unchanged sentence

When the performance obligation to deliver the financial plan is satisfied, the commission is recognized as distribution expense.

Capitalized costs to obtain these contracts are reported in other assets in the Consolidated Balance Sheets and were $ 115 million and $ 117 million as of September 30, 2021 and December 31, 2020, respectively.

Capitalized costs to obtain these contracts are reported in Other assets and were $ 123 million and $ 126 million as of March 31, 2022 and December 31, 2021, respectively.

Transaction and Other Fees

1 unchanged sentence

The Company also receives revenue for providing custodial services and account maintenance services on brokerage and retirement accounts that are not included in an advisory relationship.

Transfer agent and administrative revenue is earned based on either a fixed

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

rate applied, as a percentage, to assets under management or an annual fixed fee for each fund position.

Transfer agent and administrative revenue is earned based on either a fixed rate applied, as a percentage, to assets under management or an annual fixed fee for each fund position.

Networking and sub-accounting revenue is earned based on either an annual fixed fee for each account or an annual fixed fee for each fund position.

3 unchanged sentences

Custodial service fees are invoiced or charged to brokerage accounts on an annual basis.

Contract liabilities for custodial service fees, which are included in other liabilities in the Consolidated Balance Sheets, were $ 14 million and nil as of September 30, 2021 and December 31, 2020, respectively.

Contract liabilities for custodial service fees, which are included in Other liabilities, were $ 39 million and nil as of March 31, 2022 and December 31, 2021, respectively.

The Company earns revenue for providing trade execution services to franchise advisors.

13 unchanged sentences

The Company earns revenue for placing and maintaining unaffiliated fund partners and insurance companies’ products on the Company’s sales platform (subject to the Company’s due diligence standards).

The revenue is primarily earned based on a fixed fee or a fixed rate applied, as a percentage, to the market value of assets invested.

The revenue is primarily earned based on a fixed fee or a fixed rate applied, as a

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

percentage, to the market value of assets invested.

These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term.

23 unchanged sentences

Intellectual property and software licenses, along with compliance supervision, insurance coverage, and technology services and support are primarily earned based on a monthly fixed fee.

These services are considered a series of distinct services that are

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

substantially the same and are satisfied each day over the contract term.

These services are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term.

The consulting and other services performance obligations are satisfied as the services are delivered and revenue is earned based upon the level of service requested.

Contract Costs Asset

The Company has an asset of $ 39 million as of both March 31, 2022 and December 31, 2021 related to the transition of investment advisory services under an arrangement with BMO Financial Group for clients that elected to transfer U.S.

retail and institutional assets to the Company.

Receivables for revenue from contracts with customers are recognized when the performance obligation is satisfied and the Company has an unconditional right to the revenue.

Receivables related to revenues from contracts with customers were $ 500 million and $ 403 million as of September 30, 2021 and December 31, 2020, respectively.

Receivables related to revenues from contracts with customers were $ 609 million and $ 668 million as of March 31, 2022 and December 31, 2021, respectively.

Variable Interest Entities

4 unchanged sentences

The Company has no obligation to provide financial or other support to the non-consolidated VIEs beyond its initial investment and existing future funding commitments, and the Company has not provided any other support to these entities.

The Company has unfunded commitments related to consolidated CLOs of $ 27 million and $ 13 million as of September 30, 2021 and December 31, 2020, respectively.

The Company has unfunded commitments related to consolidated CLOs of $ 28 million and $ 27 million as of March 31, 2022 and December 31, 2021, respectively.

CLOs are asset backed financing entities collateralized by a pool of assets, primarily syndicated loans and, to a lesser extent, high-yield bonds.

5 unchanged sentences

The Company earns management fees from the CLOs based on the value of the CLO’s collateral pool and, in certain instances, may also receive incentive fees.

The fee arrangement is at market and commensurate with the level of effort required to provide those services.

The fee arrangement is at market and commensurate with the

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

level of effort required to provide those services.

The Company has invested in a portion of the unrated, junior subordinated notes and highly rated senior notes of certain CLOs.

The Company consolidates certain CLOs where it is the primary beneficiary and has the power to direct the activities that most significantly impact the economic performance of the CLO.

The Company’s maximum exposure to loss with respect to non-consolidated CLOs is limited to its amortized cost, which was $ 2 million and $ 3 million as of September 30, 2021 and December 31, 2020, respectively.

The Company’s maximum exposure to loss with respect to non-consolidated CLOs is limited to its amortized cost, which was $ 1 million as of both March 31, 2022 and December 31, 2021, respectively.

The Company classifies these investments as Available-for-Sale securities.

6 unchanged sentences

The Company’s maximum exposure to loss with respect to its investment in these entities is limited to its carrying value.

The carrying value of the Company’s investment in property funds is reflected in other investments and was $ 23 million as of both September 30, 2021 and December 31, 2020.

The carrying value of the Company’s investment in property funds is reflected in other investments and was $ 44 million as of both March 31, 2022 and December 31, 2021, respectively.

Hedge Funds and other Private Funds

3 unchanged sentences

The Company’s maximum exposure to loss with respect to its investment in these entities is limited to its carrying value.

The carrying value of the Company’s investment in these entities is reflected in other investments and was nil as of both September 30, 2021 and December 31, 2020.

The carrying value of the Company’s investment in these entities is reflected in other investments and was nil as of both March 31, 2022 and December 31, 2021.

The Company manages non-U.S.

3 unchanged sentences

The Company does not consolidate these funds and its maximum exposure to loss is limited to its carrying value.

The carrying value of the Company’s investment in these funds is reflected in other investments and was $ 26 million and $ 20 million as of September 30, 2021 and December 31, 2020, respectively.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The carrying value of the Company’s investment in these funds is reflected in other investments and was $ 42 million and $ 43 million as of March 31, 2022 and December 31, 2021, respectively.

Affordable Housing Partnerships and Other Real Estate Partnerships

3 unchanged sentences

The Company’s maximum exposure to loss as a result of its investment in the VIEs is limited to the carrying value.

The carrying value is reflected in other investments and was $ 151 million and $ 200 million as of September 30, 2021 and December 31, 2020, respectively.

The Company had a $ 9 million l iability recorded as of both September 30, 2021 and December 31, 2020 related to original purchase commitments not yet remitted to the VIEs.

The carrying value is reflected in other investments and was $ 124 million and $ 138 million as of March 31, 2022 and December 31, 2021, respectively.

The Company had a $ 8 million l iability recorded as of both March 31, 2022 and December 31, 2021, respectively, related to original purchase commitments not yet remitted to the VIEs.

The Company has not provided any additional support and is not contractually obligated to provide additional support to the VIEs beyond the funding commitments.

9 unchanged sentences

See Note 11 for the definition of the three levels of the fair value hierarchy.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis:

September 30, 2021

March 31, 2022

Level 1 Level 2 Level 3 Total

9 unchanged sentences

Total liabilities at fair value $ — $ 2,302 $ — $ 2,302

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

December 31, 2021

1 unchanged sentence

(in millions)

Corporate debt securities $ — $ 8 $ — $ 8

Common stocks $ — $ 3 $ — $ 3

8 unchanged sentences

(1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets.

The estimated fair value of the CLOs’ debt was $ 2.2 billion and $ 2.0 billion as of September 30, 2021 and December 31, 2020, respectively.

The estimated fair value of the CLOs’ debt was $ 2.1 billion and $ 2.2 billion as of March 31, 2022 and December 31, 2021, respectively.

The following tables provide a summary of changes in Level 3 assets held by consolidated investment entities measured at fair value on a recurring basis:

Syndicated Loans

(in millions)

Balance, July 1, 2021

Settlements ( 10 )

Transfers into Level 3 5

Transfers out of Level 3 ( 47 )

Deconsolidation of consolidated investment entities ( 18 )

Balance, September 30, 2021

Syndicated Loans

(in millions)

Balance, July 1, 2020

Total gains (losses) included in:

Net income 2 (1)

Settlements ( 6 )

Transfers into Level 3 29

Transfers out of Level 3 ( 141 )

Balance, September 30, 2020

Changes in unrealized gains (losses) included in income relating to assets held at September 30, 2020

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Syndicated Loans Other Assets

4 unchanged sentences

Transfers out of Level 3

Balance, March 31, 2022

Changes in unrealized gains (losses) included in income relating to assets held at March 31, 2022

$ ( 1 ) (1) $ —

Deconsolidation of consolidated investment entities ( 18 ) —

Balance, September 30, 2021

Syndicated Loans

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Syndicated Loans Other Assets

(in millions)

3 unchanged sentences

Transfers out of Level 3

Balance, September 30, 2020

Changes in unrealized gains (losses) included in income relating to assets held at September 30, 2020

(1) Included in net investment income in the Consolidated Statements of Operations.

Balance, March 31, 2021

Changes in unrealized gains (losses) included in income relating to assets held at March 31, 2021

(1) Included in Net investment income.

Securities and loans transferred from Level 3 primarily represent assets with fair values that are now obtained from a third-party pricing service with observable inputs or priced in active markets.

Securities and loans transferred to Level 3 represent assets with fair values that are now based on a single non-binding broker quote.

All Level 3 measurements as of September 30, 2021 and December 31, 2020 were obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company.

All Level 3 measurements as of March 31, 2022 and December 31, 2021 were obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company.

Determination of Fair Value

7 unchanged sentences

As a result, the fair value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets and is classified as Level 2.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Other Liabilities

2 unchanged sentences

The fair value of these liabilities is classified as Level 2.

Other liabilities also include accrued interest on the CLO debt.

Other liabilities also include accrued interest on CLO debt.

Fair Value Option

1 unchanged sentence

Management believes that the use of the fair value option better matches the changes in fair value of assets and liabilities related to the CLOs.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected:

September 30, 2021

March 31, 2022

December 31, 2021

12 unchanged sentences

(1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets.

The estimated fair value of the CLOs’ debt was $ 2.2 billion and $ 2.0 billion as of September 30, 2021 and December 31, 2020, respectively.

During the first quarter of 2021, the Company launched two new CLOs and issued debt of $ 817 million.

The estimated fair value of the CLOs’ debt was $ 2.1 billion and $ 2.2 billion as of March 31, 2022 and December 31, 2021, respectively.

Interest income from syndicated loans, bonds and structured investments is recorded based on contractual rates in Net investment income.

1 unchanged sentence

Interest expense on debt is recorded in interest and debt expense with gains and losses related to changes in the fair value of debt recorded in Net investment income.

Total net gains (losses) recognized in net investment income related to the changes in fair value of investments the Company owns in the consolidated CLOs where it has elected the fair value option and collateralized financing entity accounting were immaterial for both the three months and nine months ended September 30, 2021 and 2020.

Total net gains (losses) recognized in Net investment income related to the changes in fair value of investments the Company owns in the consolidated CLOs where it has elected the fair value option and collateralized financing entity accounting were immaterial for both the three months ended March 31, 2022 and 2021.

Debt of the consolidated investment entities and the stated interest rates were as follows:

Carrying Value Weighted Average Interest Rate

September 30, 2021

March 31, 2022

December 31, 2021

September 30, 2021

March 31, 2022

December 31, 2021

2 unchanged sentences

$ 2,156 $ 2,164 1.9 % 1.7 %

The debt of the consolidated CLOs has both fixed and floating interest rates, which range from 0.0 % to 8.8 %.

The debt of the consolidated CLOs has both fixed and floating interest rates, which range from nil to 9.5 %.

The interest rates on the debt of CLOs are weighted average rates based on the outstanding principal and contractual interest rates.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following is a summary of Ameriprise Financial investments:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

(in millions)

5 unchanged sentences

Total $ 36,040 $ 35,810

Other investments primarily reflect the Company’s interests in affordable housing partnerships, trading securities, seed money investments, syndicated loans, credit card receivables and certificates of deposit with original or remaining maturities at the time of purchase of more than 90 days.

Other investments primarily reflect the Company’s interests in affordable housing partnerships, trading securities, equity securities, seed money investments, syndicated loans, credit card receivables and certificates of deposit with original or remaining maturities at the time of purchase of more than 90 days.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following is a summary of Net investment income:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions)

2 unchanged sentences

Affordable housing partnerships ( 15 ) ( 15 )

Other 1 13 28 58

Consolidated investment entities 19 36

1 unchanged sentence

Available-for-Sale securities distributed by type were as follows:

September 30, 2021

March 31, 2022

Description of Securities

10 unchanged sentences

Total $ 32,433 $ 868 $ ( 970 ) $ ( 1 ) $ 32,330

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Description of Securities December 31, 2021

10 unchanged sentences

Total $ 30,541 $ 1,644 $ ( 134 ) $ ( 1 ) $ 32,050

As of September 30, 2021 and December 31, 2020, accrued interest of $ 144 million and $ 178 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in receivables on the Consolidated Balance Sheets.

As of September 30, 2021 and December 31, 2020, investment securities with a fair value of $ 3.0 billion and $ 3.6 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $ 403 million and $ 454 million, respectively, may be sold, pledged or rehypothecated by the counterparty.

As of September 30, 2021 and December 31, 2020, fixed maturity securities comprised approximately 90 % and 88 %, respectively, of Ameriprise Financial investments.

As of March 31, 2022 and December 31, 2021, accrued interest of $ 156 million and $ 140 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in Receivables.

As of March 31, 2022 and December 31, 2021, investment securities with a fair value of $ 3.3 billion and $ 3.1 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $ 428 million and $ 314 million, respectively, may be sold, pledged or rehypothecated by the counterparty.

As of March 31, 2022 and December 31, 2021, fixed maturity securities comprised approximately 90 % and 89 %, respectively, of Ameriprise Financial investments.

Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations (“NRSROs”), including Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings Ltd.

1 unchanged sentence

When ratings from Moody’s, S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally.

As of September 30, 2021 and December 31, 2020, the Company’s internal analysts rated $ 545 million and $ 605 million, respectively, of securities using criteria similar to those used by NRSROs.

As of March 31, 2022 and December 31, 2021, the Company’s internal analysts rated $ 471 million and $ 400 million, respectively, of securities using criteria similar to those used by NRSROs.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

A summary of fixed maturity securities by rating was as follows:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

Amortized Cost Fair Value Percent of Total Fair Value Amortized Cost Fair Value Percent of Total Fair Value

7 unchanged sentences

Total fixed maturities $ 32,433 $ 32,330 100 % $ 30,541 $ 32,050 100 %

(1) Both the amortized cost and fair value of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $ 2 million as of September 30, 2021, and $ 3 million as of December 31, 2020.

(1) The amortized cost and fair value of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $ 1 million and $ 2 million, respectively, as of both March 31, 2022 and December 31, 2021.

These securities are not rated but are included in below investment grade due to their risk characteristics.

As of September 30, 2021 and December 31, 2020, approximately 32 % and 33 %, respectively, of securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities.

No holdings of any issuer were greater than 10% of total equity.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

As of both March 31, 2022 and December 31, 2021, approximately 30 % of securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities.

No holdings of any issuer were greater than 10% of the Company’s total shareholder’s equity as of both March 31, 2022 and December 31, 2021.

The following tables summarize the fair value and gross unrealized losses on Available-for-Sale securities, aggregated by major investment type and the length of time that individual securities have been in a continuous unrealized loss position for which no allowance for credit losses has been recorded:

Description of Securities September 30, 2021

Description of Securities March 31, 2022

Less than 12 Months 12 Months or More Total

7 unchanged sentences

Foreign government bonds and obligations 7 28 ( 1 ) 9 8 ( 2 ) 16 36 ( 3 )

Other securities 4 76 ( 1 ) — — — 4 76 ( 1 )

Total 1,099 $ 20,085 $ ( 859 ) 146 $ 1,387 $ ( 111 ) 1,245 $ 21,472 $ ( 970 )

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Description of Securities December 31, 2021

9 unchanged sentences

Total 490 $ 12,001 $ ( 125 ) 91 $ 533 $ ( 9 ) 581 $ 12,534 $ ( 134 )

As part of the Company’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities for which an allowance for credit losses has not been recognized during the nine months ended September 30, 2021 is primarily attributable to higher interest rates, partially offset by tighter credit spreads.

As part of the Company’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities for which an allowance for credit losses has not been recognized during the three months ended March 31, 2022 is primarily attributable to the impact of higher interest rates and wider credit spreads.

The Company did not recognize these unrealized losses in earnings because it was determined that such losses were due to non-credit factors.

The Company does not intend to sell these securities and does not believe that it is more likely than not that the Company will be required to sell these securities before the anticipated recovery of the remaining amortized cost basis.

As of September 30, 2021 and December 31, 2020, 93 % and 92 %, respectively, of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

As of March 31, 2022 and December 31, 2021, approximately 94 % and 96 %, respectively, of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade.

The following tables present a rollforward of the allowance for credit losses on Available-for-Sale securities:

1 unchanged sentence

(in millions)

Balance, July 1, 2021

$ — $ — $ — $ —

Additions for which credit losses were not previously recorded — — 1 1

Charge-offs — — — —

Balance, September 30, 2021

$ — $ — $ 1 $ 1

Balance, July 1, 2020

$ 13 $ 1 $ — $ 14

Additions for which credit losses were not previously recorded — — — —

Balance, September 30, 2020

$ 13 $ 1 $ — $ 14

Balance at January 1, 2022

$ — $ — $ 1 $ 1

Additions for which credit losses were not previously recorded — — 1 1

Charge-offs — — — —

Balance, September 30, 2021

Balance at March 31, 2022

$ — $ — $ 1 $ 1

1 unchanged sentence

$ 10 $ 1 $ — $ 11

Additions for which credit losses were not previously recorded 13 — — 13

Additional increases (decreases) on securities that had an allowance recorded in a previous period — 1 — 1

Balance at September 30, 2020

Charge-offs ( 10 ) ( 1 ) — ( 11 )

Balance at March 31, 2021

$ — $ — $ — $ —

(1) Prior to January 1, 2020, credit losses on Available-for-Sale securities were not recorded in an allowance but were recorded as a reduction of the book value of the security if the security was other-than-temporarily impaired.

Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in Net investment income were as follows:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions)

Gross realized investment gains $ 20 $ 51

$ 508 $ 4 $ 573 $ 17

Gross realized investment losses — ( 1 )

( 5 ) — ( 6 ) ( 3 )

Credit losses

( 1 ) — ( 1 ) ( 14 )

Other impairments — — ( 13 ) —

Total $ 20 $ 50

Credit losses for the three months and nine months ended September 30, 2021 primarily related to recording an allowance for credit losses on a state and municipal security.

For the nine months ended September 30, 2020, credit losses primarily related to recording an allowance for credit losses on certain corporate debt securities, primarily in the oil and gas industry.

Other impairments for the nine months ended September 30, 2021 related to Available-for-Sale securities that were impaired prior to being sold in the reinsurance transaction.

See Note 1 for more information on the reinsurance transaction.

See Note 15 for a rollforward of net unrealized investment gains (losses) included in AOCI.

There were no credit losses for the three months ended March 31, 2022 and 2021.

See Note 14 for a rollforward of net unrealized investment gains (losses) included in accumulated other comprehensive income (“AOCI”).

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Available-for-Sale securities by contractual maturity as of September 30, 2021 were as follows:

Available-for-Sale securities by contractual maturity as of March 31, 2022 were as follows:

Amortized Cost Fair Value

13 unchanged sentences

Financing Receivables

Financing receivables are comprised of commercial loans, consumer loans, and the deposit receivable.

Financing receivables are comprised of commercial loans, consumer loans, and deposit receivables.

Allowance for Credit Losses

The following tables present a rollforward of the allowance for credit losses for the nine months ended September 30:

The following tables present a rollforward of the allowance for credit losses:

Commercial Loans Consumer Loans Total

3 unchanged sentences

Provisions ( 2 ) — ( 2 )

Charge-offs ( 6 ) ( 1 ) ( 7 )

Recoveries — 1 1

Balance, September 30, 2021

Balance, March 31, 2022

$ 45 $ 3 $ 48

1 unchanged sentence

(in millions)

Balance, December 31, 2019 (1)

$ 51 $ — $ 51

Cumulative effect of adoption of current expected credit losses guidance 2 3 5

Balance, January 1, 2021

$ 66 $ 2 $ 68

Provisions — 1 1

Charge-offs ( 1 ) — ( 1 )

Balance, September 30, 2020

Balance, March 31, 2021

$ 65 $ 3 $ 68

(1) Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset.

The decrease in the allowance for credit losses provision for commercial loans reflects the sale of certain commercial mortgage loans and syndicated loans in conjunction with the fixed deferred and immediate annuity reinsurance transaction discussed in Note 1.

Accrued interest on commercial loans was $ 13 million and $ 16 million as of September 30, 2021 and December 31, 2020, respectively, and is recorded in receivables on the Consolidated Balance Sheets and excluded from the amortized cost basis of commercial loans.

Accrued interest on commercial loans was $ 12 million and $ 13 million as of March 31, 2022 and December 31, 2021, respectively, and is recorded in Receivables and excluded from the amortized cost basis of commercial loans.

Purchases and Sales

During the three months and nine months ended September 30, 2021, the Company sold $ 746 million of commercial mortgage loans.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

During the three months ended September 30, 2021 and 2020, the Company purchased nil and $ 96 million, respectively, of syndicated loans, and sold $ 360 million and $ 5 million, respectively, of syndicated loans.

During the nine months ended September 30, 2021 and 2020, the Company purchased $ 37 million and $ 165 million, respectively, of syndicated loans, and sold $ 368 million and $ 12 million, respectively, of syndicated loans.

During the three months ended September 30, 2021 and 2020, the Company purchased $ 1 million and nil , respectively, of residential mortgage loans, and sold $ 3 million and nil , respectively, of residential mortgage loans.

During the nine months ended September 30, 2021 and 2020, the Company purchased $ 7 million and $ 22 million, respectively, of residential mortgage loans, and sold $ 3 million and nil , respectively, of residential mortgage loans.

The allowance for credit losses for residential mortgage loans was not material as of both September 30, 2021 and 2020.

During the three months ended March 31, 2022 and 2021, the Company purchased nil and $ 13 million, respectively, of syndicated loans, and sold nil and $ 4 million, respectively, of syndicated loans.

During the three months ended March 31, 2022 and 2021, the Company purchased $ 1 million and $ 2 million, respectively, of residential mortgage loans.

The allowance for credit losses for residential mortgage loans was not material as of both March 31, 2022 and 2021.

The Company has not acquired any loans with deteriorated credit quality as of the acquisition date.

Credit Quality Information

Nonperforming loans were $ 9 million and $ 21 million as of September 30, 2021 and December 31, 2020, respectively.

Nonperforming loans were $ 8 million and $ 9 million as of March 31, 2022 and December 31, 2021, respectively.

All other loans were considered to be performing.

3 unchanged sentences

Loan-to-value ratio is the primary credit quality indicator included in this review.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates when credit risk changes.

Commercial mortgage loans which management has assigned its highest risk rating were less than 1 % of total commercial mortgage loans as of both September 30, 2021 and December 31, 2020.

Commercial mortgage loans which management has assigned its highest risk rating were less than 1 % of total commercial mortgage loans as of both March 31, 2022 and December 31, 2021.

Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months.

Total commercial mortgage loan modifications through December 31, 2020 due to the COVID-19 pandemic consisted o f 93 loans with a total unpaid balance of $ 369 million .

Modifications primarily consisted of short-term forbearance and interest only payments.

There were no additional modifications through September 30, 2021.

As of September 30, 2021, there were no loans remaining that were modified due to COVID-19 .

All loans returned to their normal payment schedules.

Total commercial mortgage loans past due were nil as of September 30, 2021 and December 31, 2020, respectively.

Total commercial mortgage loans past due were nil as of March 31, 2022 and December 31, 2021, respectively.

The tables below present the amortized cost basis of commercial mortgage loans by the year of origination and loan-to-value ratio :

September 30, 2021

March 31, 2022

Loan-to-Value Ratio 2022

17 unchanged sentences

Loan-to-value ratio is based on income and expense data provided by borrowers at least annually and long-term capitalization rate assumptions based on property type.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

In addition, the Company reviews the concentrations of credit risk by region and property type.

2 unchanged sentences

Loans Percentage

September 30, 2021

March 31, 2022

December 31, 2021

September 30, 2021

March 31, 2022

December 31, 2021

12 unchanged sentences

Total $ 1,922 $ 1,904

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Concentrations of credit risk of commercial mortgage loans by property type were as follows:

Loans Percentage

September 30, 2021

March 31, 2022

December 31, 2021

September 30, 2021

March 31, 2022

December 31, 2021

11 unchanged sentences

Syndicated Loans

The recorded investment in syndicated loans as of September 30, 2021 and December 31, 2020 were $ 152 million and $ 595 million, respectively.

The recorded investment in syndicated loans as of March 31, 2022 and December 31, 2021 was $ 146 million and $ 149 million, respectively.

The Company’s syndicated loan portfolio is diversified across industries and issuers.

Total syndicated loans past due were nil and $ 3 million as of September 30, 2021 and December 31, 2020, respectively.

Total syndicated loans past due were nil as of March 31, 2022 and December 31, 2021.

The Company assigns an internal risk rating to each syndicated loan in its portfolio ranging from 1 through 5, with 5 reflecting the lowest quality.

The tables below present the amortized cost basis of syndicated loans by origination year and internal risk rating:

September 30, 2021

March 31, 2022

Internal Risk Rating 2022 2021 2020 2019 2018 Prior Total

6 unchanged sentences

Total $ 1 $ 24 $ 7 $ 19 $ 24 $ 71 $ 146

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

December 31, 2021

12 unchanged sentences

Accordingly, the primary risk factor for advisor loans is termination status.

The allowance for credit losses related to loans to advisors that have terminated their relationship with the Company was $ 6 million and $ 7 million as of September 30, 2021 and December 31, 2020, respectively.

The allowance for credit losses related to loans to advisors that have terminated their relationship with the Company was $ 5 million as of both March 31, 2022 and December 31, 2021.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The tables below present the amortized cost basis of advisor loans by origination year and termination status:

September 30, 2021

March 31, 2022

Termination Status 2022 2021 2020 2019 2018 Prior Total

15 unchanged sentences

Delinquency rates are measured based on the number of days past due.

Credit card receivables over 30 days past due were 1 % of total credit card receivables as of both September 30, 2021 and December 31, 2020.

Credit card receivables over 30 days past due were 1 % of total credit card receivables as of both March 31, 2022 and December 31, 2021.

The table below presents the amortized cost basis of credit card receivables by FICO score:

September 30, 2021

March 31, 2022

December 31, 2021

7 unchanged sentences

As there is minimal risk of loss related to policy loans, there is no allowance for credit losses.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The margin loans balance was $ 1.2 billion and $ 1.0 billion as of September 30, 2021 and December 31, 2020, respectively.

The margin loans balance was $ 1.2 billion as of both March 31, 2022 and December 31, 2021.

The Company monitors collateral supporting margin loans and requests additional collateral when necessary in order to mitigate the risk of loss.

As of both September 30, 2021 and December 31, 2020, the allowance for credit losses on margin loans was not material.

As of both March 31, 2022 and December 31, 2021, the allowance for credit losses on margin loans was not material.

Pledged Asset Lines of Credit

The pledged asset lines of credit balance was $ 408 million and $ 224 million as of September 30, 2021 and December 31, 2020, respectively.

The pledged asset lines of credit balance was $ 520 million and $ 467 million as of March 31, 2022 and December 31, 2021, respectively.

The Company monitors collateral supporting pledged asset lines of credit and requests additional collateral when necessary in order to mitigate the risk of loss.

As of September 30, 2021 and December 31, 2020, there w as no allowance for credit losses on pledged asset lines of credit.

Deposit Receivable

The deposit receivable was $ 8.0 billion and $ 1.4 billion as of September 30, 2021 and December 31, 2020, respectively.

The deposit receivable is fully collateralized by the fair value of the assets held in trusts.

Based on management’s evaluation of the nature of the underlying assets and the potential for changes in the collateral value, there was no allowance for credit losses for the deposit receivable as of both September 30, 2021 and December 31, 2020.

The increase in the deposit receivable is primarily driven by the reinsurance transaction, effective July 1, 2021, to reinsure fixed deferred and non-life contingent immediate annuity policies.

See Note 1 for more information on the fixed deferred and immediate annuity reinsurance transaction.

As of March 31, 2022 and December 31, 2021, there w as no allowance for credit losses on pledged asset lines of credit.

Deposit Receivables

Deposit receivables were $ 7.8 billion and $ 7.9 billion as of March 31, 2022 and December 31, 2021, respectively.

Deposit receivables are fully collateralized by the fair value of the assets held in trusts.

Troubled Debt Restructurings

There were no loans accounted for as a troubled debt restructuring by the Company during the each of the three months and nine months ended September 30, 2021 and 2020.

There were no loans accounted for as a troubled debt restructuring by the Company during the three months ended March 31, 2022 and 2021.

There are no commitments to lend additional funds to borrowers whose loans have been restructured.

During the third quarter of 2021, RiverSource Life reinsured 100 % of its insurance risk associated with its life contingent immediate annuity policies in force as of July 1, 2021 through a reinsurance agreement with Global Atlantic Financial Group’s subsidiary Commonwealth Annuity and Life Insurance Company.

Policies issued after July 1, 2021 are not subject to this reinsurance agreement.

See Note 1 for more information on the fixed deferred and immediate annuity reinsurance transaction.

The ceded premiums associated with life contingent immediate annuity policies were $ 1.2 billion for the three months and nine months ended September 30, 2021.

Receivables included $ 1.1 billion of reinsurance recoverables related to life contingent immediate annuity policies as of September 30, 2021.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Deferred Acquisition Costs and Deferred Sales Inducement Costs

During the third quarter of the year, management updated market-related inputs and implemented model changes related to the living benefit valuation.

In addition, management conducted its annual review of life insurance and annuity valuation assumptions relative to current experience and management expectations including modeling changes.

These aforementioned changes are collectively referred to as unlocking.

The impact of unlocking to DAC in the third quarter of 2021 primarily reflected a favorable impact from lower surrenders on variable annuities with living benefits and UL and VUL insurance products.

The impact of unlocking to DAC in the third quarter of 2020 primarily reflected an unfavorable impact from updates to interest rate assumptions, partially offset by a favorable impact from lower surrenders on variable annuities with living benefit guarantees.

The balances of and changes in DAC were as follows:

2 unchanged sentences

Capitalization of acquisition costs 53 65

( 137 ) ( 249 )

Amortization, impact of valuation assumptions review 60 ( 100 )

Impact of change in net unrealized (gains) losses on securities 189 93

Balance at September 30

Balance at March 31

$ 2,928 $ 2,685

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The balances of and changes in DSIC, which is included in Other assets, were as follows:

1 unchanged sentence

Balance at January 1 $ 189 $ 189

Capitalization of sales inducement costs 1 1

Amortization ( 8 ) ( 3 )

Amortization, impact of valuation assumptions review 2 ( 16 )

Impact of change in net unrealized (gains) losses on securities 6 4

Balance at September 30

Balance at March 31

Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities

Policyholder account balances, future policy benefits and claims consisted of the following:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

(in millions)

11 unchanged sentences

Variable annuity guaranteed minimum accumulation benefits (“GMAB”) (2)

( 17 ) ( 23 )

Other annuity liabilities 96 67

7 unchanged sentences

(1) Includes fixed deferred annuities, non-life contingent fixed payout annuities and fixed deferred indexed annuity host contracts.

(2) Includes the fair value of GMAB embedded derivatives that was a net asset as of September 30, 2021 reported as a contra liability.

(2) Includes the fair value of GMAB embedded derivatives that was a net asset as of both March 31, 2022 and December 31, 2021 reported as a contra liability.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Separate account liabilities consisted of the following:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

(in millions)

4 unchanged sentences

Total $ 89,669 $ 97,491

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Variable Annuity and Insurance Guarantees

The majority of the variable annuity contracts offered by the Company contain guaranteed minimum death benefit (“GMDB”) provisions.

The Company also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up (“GGU”) benefits.

In addition, the Company offers contracts with GMWB and GMAB provisions.

The Company previously offered contracts containing guaranteed minimum income benefit (“GMIB”) provisions.

Certain UL policies offered by the Company provide secondary guarantee benefits.

Most of the variable annuity contracts issued by the Company contain one or more guaranteed minimum death benefit (“GMDB”) provisions or death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up (“GGU”) benefits.

The Company discontinued new sales of substantially all GMWB and GMAB at the end of 2021.

The Company also previously offered contracts containing guaranteed minimum income benefit (“GMIB”) provisions.

Certain UL policies provide secondary guarantee benefits.

The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges.

2 unchanged sentences

by Benefit Type (1)

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

Total Contract Value Contract Value in Separate Accounts Net Amount

20 unchanged sentences

The net amount at risk for GMWB is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following table provides information related to insurance guarantees for which the Company has established additional liabilities:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

at Risk Weighted Average Attained Age Net Amount

3 unchanged sentences

The net amount at risk for UL secondary guarantees is defined as the current guaranteed death benefit amount in excess of the current policyholder account balance.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows:

5 unchanged sentences

( 3 ) — — — ( 9 )

Balance at September 30, 2020

Balance at March 31, 2022

$ 33 $ 5 $ 1,750 $ ( 17 ) $ 1,042

4 unchanged sentences

( 1 ) — — — ( 8 )

Balance at September 30, 2021

Balance at March 31, 2021

$ 26 $ 6 $ 1,479 $ ( 22 ) $ 940

2 unchanged sentences

The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

(in millions)

4 unchanged sentences

Total mutual funds $ 75,589 $ 82,497

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows:

Outstanding Balance Stated Interest Rate

September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021

(in millions)

6 unchanged sentences

Finance lease liabilities 37 40 N/A N/A

Other ( 10 ) ( 13 ) N/A N/A

( 7 ) ( 8 ) N/A N/A

Total long-term debt 2,330 2,832

2 unchanged sentences

Total $ 2,530 $ 3,032

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

(1) Includes adjustments for net unamortized discounts, debt issuance costs and other lease obligations.

N/A Not Applicable

Long-Term Debt

The Company’s senior notes may be redeemed, in whole or in part, at any time prior to maturity at a price equal to the greater of the principal amount and the present value of remaining scheduled payments, discounted to the redemption date, plus accrued interest.

The Company repaid $ 500 million principal amount of its 3.0 % senior notes at maturity on March 22, 2022.

Short-Term Borrowings

1 unchanged sentence

The Company has pledged Available-for-Sale securities consisting of commercial mortgage backed securities and residential mortgage backed securities as collateral to access these borrowings.

The fair value of the securities pledged is recorded in investments and was $ 1.1 billion and $ 1.3 billion, of commercial mortgage backed securities, and $ 518 million and $ 604 million, of residential mortgage backed securities, as of September 30, 2021 and December 31, 2020, respectively.

The remaining maturity of outstanding FHLB advances was less than three months as of both September 30, 2021 and December 31, 2020.

The stated interest rate of the FHLB advances is a weighted average annualized interest rate on outstanding borrowings as of the balance sheet date.

On June 11, 2021, the Company entered into an amended and restated credit agreement that provides for an unsecured revolving credit facility of up to $ 1.0 billion that expires in June 2026.

The fair value of the securities pledged is recorded in Investments and was $ 1.2 billion of commercial mortgage backed securities as of both March 31, 2022 and December 31, 2021, and $ 587 million and $ 581 million, of residential mortgage backed securities, as of March 31, 2022 and December 31, 2021, respectively.

The remaining maturity of outstanding FHLB advances was less than three months as of both March 31, 2022 and December 31, 2021.

The stated interest rate of the FHLB advances is a weighted average annualized interest rate on the outstanding borrowings as of the balance sheet date.

In June 2021, the Company entered into an amended and restated credit agreement that provides for an unsecured revolving credit facility of up to $ 1.0 billion that expires in June 2026.

Under the terms of the credit agreement for the facility, the Company may increase the amount of this facility up to $ 1.25 billion upon satisfaction of certain approval requirements.

As of both September 30, 2021 and December 31, 2020, the Company had no borrowings outstanding and had $ 1.1 million of letters of credit issued against the facility.

As of both March 31, 2022 and December 31, 2021, the Company had no borrowings outstanding and $ 1 million of letters of credit issued against the facility.

The Company’s credit facility contains various administrative, reporting, legal and financial covenants.

The Company was in compliance with all such covenants as of both September 30, 2021 and December 31, 2020.

The Company was in compliance with all such covenants as of both March 31, 2022 and December 31, 2021.

Fair Values of Assets and Liabilities

6 unchanged sentences

A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The three levels of the fair value hierarchy are defined as follows:

4 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis:

September 30, 2021

The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis (See Note 4 for the balances of assets and liabilities for consolidated investment entities):

March 31, 2022

Level 1 Level 2 Level 3 Total

57 unchanged sentences

Investments and cash equivalents segregated for regulatory purposes 600 — — 600

Fixed deferred indexed annuity ceded embedded derivatives — — 59 59

Other assets:

15 unchanged sentences

Equity derivative contracts 101 3,653 — 3,754

Credit derivative contracts — 1 — 1

Foreign exchange derivative contracts 1 — — 1

3 unchanged sentences

(1) Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy.

(2) The fair value of the GMWB and GMAB embedded derivatives included $ 1.6 billion of individual contracts in a liability position and $ 142 million of individual contracts in an asset position (recorded as a contra liability) as of September 30, 2021.

(3) The Company’s adjustment for nonperformance risk resulted in a $ 550 million cumulative decrease to the embedded derivatives as of September 30, 2021.

(2) The fair value of the GMWB and GMAB embedded derivatives included $ 1.0 billion of individual contracts in a liability position and $ 204 million of individual contracts in an asset position (recorded as a contra liability) as of March 31, 2022.

(3) The Company’s adjustment for nonperformance risk resulted in a $ 607 million cumulative decrease to the embedded derivatives as of March 31, 2022.

(4) The fair value of the GMWB and GMAB embedded derivatives included $ 1.6 billion of individual contracts in a liability position and $ 133 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2021.

4 unchanged sentences

Available-for-Sale Securities Receivables

Corporate Debt Securities Asset Backed Securities Total Fixed Deferred Indexed Annuity Ceded Embedded Derivatives

(in millions)

Balance, July 1, 2021

$ 391 $ 6 $ 397 $ —

Total gains (losses) included in:

Net income ( 1 ) 1 — (1) —

Other comprehensive income (loss) ( 3 ) — ( 3 ) —

Purchases 9 — 9 —

Sales — ( 1 ) ( 1 ) —

Issues — — — 57 (5)

Settlements ( 44 ) ( 1 ) ( 45 ) ( 1 )

Transfers into Level 3 168 2 170 —

Balance, September 30, 2021

$ 520 $ 7 $ 527 $ 56

Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at September 30, 2021

$ ( 4 ) $ — $ ( 4 ) $ —

Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities

Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total

Corporate Debt Securities Commercial Mortgage Backed Securities Asset Backed Securities Total Fixed Deferred Indexed Annuity Ceded Embedded Derivatives

(in millions)

Balance, July 1, 2021

Balance at January 1, 2022

$ 502 $ 35 $ 7 $ 544 $ 59

1 unchanged sentence

Net income — — — — (1) ( 3 )

Issues — — 95 ( 7 ) 88 5

Settlements ( 1 ) ( 25 ) 37 ( 7 ) 4 ( 4 )

Balance, September 30, 2021

$ 54 $ 917 $ 1,436 $ 217 $ 2,624 $ 40

Changes in unrealized (gains) losses in net income relating to liabilities held at September 30, 2021

$ — $ 14 (2) $ ( 60 ) (3) $ — $ ( 46 ) $ —

Available-for-Sale Securities

Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total

(in millions)

Balance, July 1, 2020

$ 744 $ 205 $ 15 $ 964

Total gains (losses) included in:

Other comprehensive income (loss) ( 22 ) — — ( 22 ) —

1 unchanged sentence

Settlements ( 6 ) — — ( 6 ) ( 1 )

Transfers into Level 3 — — 13 13

Transfers out of Level 3 — ( 35 ) — ( 35 ) —

Balance, September 30, 2020

Balance at March 31, 2022

$ 497 $ 112 $ 7 $ 616 $ 55

Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at September 30, 2020

Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at March 31, 2022

$ ( 21 ) $ — $ — $ ( 21 ) $ —

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities

1 unchanged sentence

(in millions)

Balance, July 1, 2020

$ 41 $ 882 $ 3,129 $ 9 $ 4,061 $ 48

Total (gains) losses included in:

Net income 3 (2) 50 (2) ( 296 ) (3) 3 (3) ( 240 ) ( 11 ) (4)

Issues — 15 93 ( 3 ) 105 5

Settlements — ( 21 ) 17 — ( 4 ) ( 2 )

Balance, September 30, 2020

$ 44 $ 926 $ 2,943 $ 9 $ 3,922 $ 40

Changes in unrealized (gains) losses in net income relating to liabilities held at September 30, 2020

$ — $ 50 (2) $ ( 283 ) (3) $ — $ ( 233 ) $ —

Available-for-Sale Securities Receivables

Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total Fixed Deferred Indexed Annuity Ceded Embedded Derivatives

(in millions)

Balance, January 1, 2021

Balance at January 1, 2022

$ 56 $ 905 $ 1,486 $ 406 $ 2,853 $ 61

2 unchanged sentences

Other comprehensive income (loss) — — — — — ( 1 )

Purchases 76 78 — 154 —

Sales — — ( 1 ) ( 1 ) —

Issues — — 87 4 91 8

Settlements ( 1 ) ( 25 ) ( 66 ) ( 6 ) ( 98 ) ( 6 )

Transfers into Level 3 168 — 2 170 —

Transfers out of Level 3 ( 416 ) ( 87 ) ( 24 ) ( 527 ) —

Balance, September 30, 2021

$ 520 $ — $ 7 $ 527 $ 56

Changes in unrealized gains (losses) in net income relating to assets held at September 30, 2021

Balance at March 31, 2022

$ 52 $ 848 $ 828 $ 280 $ 2,008 $ 62

Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at September 30, 2021

Changes in unrealized (gains) losses in net income relating to liabilities held at March 31, 2022

$ — $ ( 32 ) (2) $ ( 671 ) (3) $ — $ ( 703 ) $ —

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities

Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total

(in millions)

Balance, January 1, 2021

$ 49 $ 935 $ 2,316 $ 70 $ 3,370 $ 43

Total (gains) losses included in:

Net income 7 (2) 51 (2) ( 1,273 ) (3) 192 (3) ( 1,023 ) ( 4 ) (4)

Issues — 4 274 ( 22 ) 256 11

Settlements ( 2 ) ( 73 ) 119 ( 23 ) 21 ( 10 )

Balance, September 30, 2021

$ 54 $ 917 $ 1,436 $ 217 $ 2,624 $ 40

Changes in unrealized (gains) losses in net income relating to liabilities held at September 30, 2021

$ — $ 51 (2) $ ( 1,236 ) (3) $ — $ ( 1,185 ) $ —

Available-for-Sale Securities

1 unchanged sentence

(in millions)

Balance, January 1, 2020

Balance at January 1, 2021

$ 772 $ 9 $ 32 $ 813

4 unchanged sentences

Settlements ( 1 ) — ( 1 ) ( 2 )

Transfers into Level 3 — — 13 13

Transfers out of Level 3 — ( 188 ) — ( 188 )

Balance, September 30, 2020

Balance at March 31, 2021

$ 812 $ 87 $ 30 $ 929

Changes in unrealized gains (losses) in net income relating to assets held at September 30, 2020

Changes in unrealized gains (losses) in net income relating to assets held at March 31, 2021

$ — $ — $ ( 1 ) $ ( 1 ) (1)

Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at September 30, 2020

Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at March 31, 2021

$ ( 5 ) $ — $ — $ ( 5 )

Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities

Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Structured Annuity Embedded Derivatives Total

Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total

(in millions)

Balance, January 1, 2020

Balance at January 1, 2021

$ 49 $ 935 $ 2,316 $ 70 $ 3,370 $ 43

3 unchanged sentences

Settlements ( 1 ) ( 20 ) 38 ( 6 ) 11 ( 2 )

Balance, September 30, 2020

Balance at March 31, 2021

$ 52 $ 949 $ 715 $ 124 $ 1,840 $ 43

Changes in unrealized (gains) losses in net income relating to liabilities held at September 30, 2020

Changes in unrealized (gains) losses in net income relating to liabilities held at March 31, 2021

$ — $ 29 (2) $ ( 1,705 ) (3) $ — $ ( 1,676 ) $ —

(1) Included in net investment income in the Consolidated Statements of Operations.

(2) Included in interest credited to fixed accounts in the Consolidated Statements of Operations.

(3) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations.

(4) Included in general and administrative expense in the Consolidated Statements of Operations.

(1) Included in Net investment income.

(2) Included in Interest credited to fixed accounts.

(3) Included in Benefits, claims, losses and settlement expenses.

(4) Included in General and administrative expense.

The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $ 25 million and $( 167 ) million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the three months ended March 31, 2022 and 2021, respectively.

Securities transferred from Level 3 primarily represent securities with fair values that are obtained from a third-party pricing service with observable inputs or fair values that were included in an observable transaction with a market participant.

Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

(5) Represents the amount of ceded embedded derivatives associated with fixed deferred annuity products reinsured in the third quarter of 2021.

See Note 1 for additional information on the reinsurance transaction.

The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $ 1 million and $( 123 ) million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the three months ended September 30, 2021 and 2020, respectively.

The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $( 138 ) million and $ 446 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the nine months ended September 30, 2021 and 2020, respectively.

The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities:

September 30, 2021

March 31, 2022

Fair Value Valuation Technique Unobservable Input Range Weighted Average

30 unchanged sentences

0.0 % – 0.0 % 0.0 %

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

December 31, 2021

5 unchanged sentences

Asset backed securities $ 2 Discounted cash flow Annual short-term default rate (2)

2.9 % – 3.0 % 2.9 %

Annual long-term default rate (2)

3.5 % – 4.5 % 3.8 %

Discount rate 12.0 % 12.0 %

1 unchanged sentence

Loss recovery 63.6 % 63.6 %

Fixed deferred indexed annuity ceded embedded derivatives $ 59 Discounted cash flow Surrender rate (4)

0.0 % – 66.8 % 1.4 %

IUL embedded derivatives $ 905 Discounted cash flow Nonperformance risk (3)

17 unchanged sentences

0.0 % – 0.0 % 0.0 %

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

(1) The weighted average for the spread to U.S.

6 unchanged sentences

The calculation excludes policies that have already started taking withdrawals.

(7) Market volatility is implied volatility of fund of funds and managed volatility funds.

(7) Market volatility represents the implied volatility of fund of funds and managed volatility funds.

(8) The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit.

8 unchanged sentences

Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would have resulted in a significantly lower (higher) fair value measurement.

Significant increases (decreases) in nonperformance risk and the surrender rate used in the fair value measurements of the fixed deferred indexed annuity embedded derivatives and structured variable annuity embedded derivatives in isolation would have resulted in a significantly lower (higher) liability value.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurements of the fixed deferred indexed annuity embedded derivatives and structured variable annuity embedded derivatives in isolation would have resulted in a significantly lower (higher) liability value.

Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would have resulted in a significantly higher (lower) liability value.

12 unchanged sentences

Treasuries are also classified as Level 1.

The Company’s remaining cash equivalents are classified as Level 2 and measured at amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Investments (Available-for-Sale Securities, Equity Securities and Trading Securities)

1 unchanged sentence

If quoted prices are not available, fair values are obtained from third-party pricing services, non-binding broker quotes, or other model-based valuation techniques.

Level 1 securities primarily include U.S.

Level 2 securities primarily include corporate bonds, residential mortgage backed securities, commercial mortgage backed securities, asset backed securities, state and municipal obligations and foreign government securities.

Level 1 securities primarily include equity securities and U.S.

The fair value of these Level 2 securities is based on a market approach with prices obtained from third-party pricing services.

18 unchanged sentences

Separate account assets are excluded from classification in the fair value hierarchy.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Investments and Cash Equivalents Segregated for Regulatory Purposes

2 unchanged sentences

During the third quarter of 2021, the Company reinsured its fixed deferred indexed annuity products which have an indexed account that is accounted for as an embedded derivative.

The Company uses discounted cash flow models including Black-Scholes calculations to determine the fair value of these ceded embedded derivatives.

The Company uses discounted cash flow models to determine the fair value of these ceded embedded derivatives.

The fair value of fixed deferred indexed annuity ceded embedded derivatives includes significant observable interest rates, volatilities and equity index levels and significant unobservable surrender rates.

Given the significance of the unobservable surrender rates, these embedded derivatives are classified as Level 3.

See Note 1 for more information on the reinsurance transaction.

Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements.

2 unchanged sentences

These measurements are classified as Level 2 within the fair value hierarchy and include swaps, foreign currency forwards and the majority of options.

The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of both September 30, 2021 and December 31, 2020.

The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of March 31, 2022 and December 31, 2021.

See Note 12 and Note 13 for further information on the credit risk of derivative instruments and related collateral.

2 unchanged sentences

The Company values the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models.

These models calculate fair value as the present value of future expected benefit payments less the present value of future expected rider fees attributable to the embedded derivative feature.

These models calculate fair value as the present value of future expected benefit payments less the present value of future

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

expected rider fees attributable to the embedded derivative feature.

The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to implied volatility as well as contractholder behavior assumptions that include margins for risk, all of which the Company believes a market participant would expect.

4 unchanged sentences

The projected cash flows generated by this model are based on significant observable inputs related to interest rates, volatilities and equity index levels and, therefore, are classified as Level 2.

The Company uses discounted cash flow models including Black-Scholes calculations to determine the fair value of the embedded derivatives associated with the provisions of its fixed deferred indexed annuity, structured variable annuity and IUL products.

The Company uses discounted cash flow models to determine the fair value of the embedded derivatives associated with the provisions of its fixed deferred indexed annuity, structured variable annuity and IUL products.

The structured variable annuity product is a limited flexible purchase payment annuity that offers 45 different indexed account options providing equity market exposure and a fixed account.

Each indexed account includes a protection option (a buffer or a floor).

If the index has a negative return, contractholder losses will be reduced by buffer or limited to a floor.

If the index has a negative return, contractholder losses will be reduced by a buffer or limited to a floor.

The portion allocated to an indexed account is accounted for as an embedded derivative.

3 unchanged sentences

Customer Deposits

The Company uses various Black-Scholes calculations to determine the fair value of the embedded derivative liability associated with the provisions of its stock market certificates (“SMC”).

The Company uses discounted cash flow models to determine the fair value of the embedded derivative liability associated with the provisions of its stock market certificates (“SMC”).

The inputs to these calculations are primarily market observable and include interest rates, volatilities and equity index levels.

4 unchanged sentences

The fair value of derivatives that are traded in less active OTC markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels.

These measurements are classified as Level 2 within the fair value hierarchy and include swaps, foreign currency

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

forwards and the majority of options.

The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of both September 30, 2021 and December 31, 2020.

These measurements are classified as Level 2 within the fair value hierarchy and include swaps, foreign currency forwards and the majority of options.

The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of March 31, 2022 and December 31, 2021.

See Note 12 and Note 13 for further information on the credit risk of derivative instruments and related collateral.

2 unchanged sentences

If quoted prices are not available, fair values are obtained from nationally-recognized pricing services, or other model-based valuation techniques such as the present value of cash flows.

Level 1 securities sold but not yet purchased primarily include U.S Treasuries traded in active markets.

Level 1 securities sold but not yet purchased primarily include equity securities and U.S.

Treasuries traded in active markets.

Level 2 securities sold but not yet purchased primarily include corporate bonds.

Contingent consideration liabilities consist of earn-outs and/or deferred payments related to the Company’s acquisitions.

Contingent consideration liabilities are recorded at fair value using a discounted cash flow model using an unobservable input (discount rate).

Contingent consideration liabilities are recorded at fair value utilizing a discounted cash flow model using an unobservable input (discount rate).

Given the use of a significant unobservable input, the fair value of contingent consideration liabilities is classified as Level 3 within the fair value hierarchy.

4 unchanged sentences

Inputs to the discounted cash flow model are estimates of future net operating losses and tax credits available to the Company and discount rates based on market condition and the financial strength of the syndicator (general partner).

The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $ 99 million and $ 101 million as of September 30, 2021 and December 31, 2020, respectively, and is classified as Level 3 in the fair value hierarchy.

Asset and Liabilities Not Reported at Fair Value

The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $ 87 million and $ 93 million as of March 31, 2022 and December 31, 2021, respectively, and is classified as Level 3 in the fair value hierarchy.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Assets and Liabilities Not Reported at Fair Value

The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value:

September 30, 2021

March 31, 2022

Carrying Value Fair Value

14 unchanged sentences

Debt and other liabilities 2,776 269 2,517 8 2,794

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

December 31, 2021

17 unchanged sentences

Other investments and assets primarily include syndicated loans, credit card receivables, certificate of deposits with original or remaining maturities at the time of purchase of more than 90 days, the Company’s membership in the FHLB and investments related to the Community Reinvestment Act.

See Note 6 for additional information on mortgage loans, policy loans, syndicated loans, credit card receivables and the deposit receivable.

See Note 6 for additional information on mortgage loans, policy loans, syndicated loans, credit card receivables and deposit receivables.

Policyholder account balances, future policy benefits and claims include fixed annuities in deferral status, non-life contingent fixed annuities in payout status, indexed and structured variable annuity host contracts, and the fixed portion of a small number of variable annuity contracts classified as investment contracts.

16 unchanged sentences

The following tables present the gross and net information about the Company’s assets subject to master netting arrangements:

September 30, 2021

March 31, 2022

Gross Amounts of Recognized Assets

33 unchanged sentences

The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements:

September 30, 2021

March 31, 2022

Gross Amounts of Recognized Liabilities

52 unchanged sentences

The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

Notional Gross Fair Value Notional Gross Fair Value

3 unchanged sentences

Derivatives designated as hedging instruments

Equity contracts - cash flow hedges $ 19 $ 1 $ — $ 19 $ — $ —

Foreign exchange contracts – net investment hedges 140 4 — 58 — —

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N/A Not applicable.

(1) The fair value of freestanding derivative assets is included in Other assets and the fair value of ceded embedded derivative assets related to deposit receivables is included in Receivables on the Consolidated Balance Sheets.

(2) The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets.

The fair value of GMWB and GMAB, IUL, fixed deferred indexed annuity and structured variable annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets.

The fair value of the SMC embedded derivative liability is included in Customer deposits on the Consolidated Balance Sheets.

(3) The fair value of the Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $ 2.9 billion and $ 3.7 billion as of September 30, 2021 and December 31, 2020, respectively.

See Note 13 for additional information related to master netting arrangements and cash collateral.

(4) The fair value of the GMWB and GMAB embedded derivatives as of September 30, 2021 included $ 1.6 billion of individual contracts in a liability position and $ 142 million of individual contracts in an asset position.

(1) The fair value of freestanding derivative assets is included in Other assets and the fair value of ceded embedded derivative assets related to deposit receivables is included in Receivables.

(2) The fair value of freestanding derivative liabilities is included in Other liabilities.

The fair value of the SMC embedded derivative liability is included in Customer deposits.

(3) The fair value of the Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $ 2.4 billion and $ 3.2 billion as of March 31, 2022 and December 31, 2021, respectively.

See Note 12 for a dditional information related to master netting arrangements and cash collateral.

(4) The fair value of the GMWB and GMAB embedded derivatives as of March 31, 2022 included $ 1.0 billion of individual contracts in a liability position and $ 204 million of individual contracts in an asset position.

The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2021 included $ 1.6 billion of individual contracts in a liability position and $ 133 million of individual contracts in an asset position.

2 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

As of September 30, 2021 and December 31, 2020, investment securities with a fair value of $ 448 million and $ 325 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $ 448 million and $ 325 million, respectively, may be sold, pledged or rehypothecated by the Company.

As of both September 30, 2021 and December 31, 2020, the Company had sold, pledged or rehypothecated none of these securities.

In addition, as of both September 30, 2021 and December 31, 2020, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.

As of March 31, 2022 and December 31, 2021, investment securities with a fair value of nil and $ 123 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which nil and $ 123 million, respectively, may be sold, pledged or rehypothecated by the Company.

As of both March 31, 2022 and December 31, 2021, the Company had sold, pledged or rehypothecated none of these securities.

In addition, as of both March 31, 2022 and December 31, 2021, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.

Derivatives Not Designated as Hedges

The following tables present a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Operations:

The following table presents a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Operations:

Net Investment Income Banking and Deposit Interest Expense Distribution Expenses Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses General and Administrative Expense

(in millions)

Three Months Ended September 30, 2021

Interest rate contracts $ — $ — $ — $ — $ ( 171 ) $ —

Equity contracts — — ( 13 ) — 1 ( 1 )

Credit contracts — — — — 2 —

Foreign exchange contracts ( 23 ) — — — — —

GMWB and GMAB embedded derivatives — — — — ( 64 ) —

IUL embedded derivatives — — — 11 — —

Fixed deferred indexed annuity and deposit receivables embedded derivatives — — — 1 — —

Structured variable annuity embedded derivatives — — — — ( 17 ) —

SMC embedded derivatives — — — — — —

Total gain (loss) $ ( 23 ) $ — $ ( 13 ) $ 12 $ ( 249 ) $ ( 1 )

Nine Months Ended September 30, 2021

Three Months Ended March 31, 2022

Interest rate contracts $ — $ — $ — $ — $ ( 1,118 ) $ —

6 unchanged sentences

Structured variable annuity embedded derivatives — — — — 123 —

SMC embedded derivatives — ( 1 ) — — — —

Total gain (loss) $ 7 $ — $ ( 62 ) $ 42 $ 15 $ ( 7 )

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

(in millions)

Three Months Ended September 30, 2020

Interest rate contracts $ — $ — $ — $ — $ ( 371 ) $ —

Equity contracts — 2 41 42 ( 468 ) 6

Credit contracts — — — — ( 12 ) —

Foreign exchange contracts — — — — ( 23 ) 5

GMWB and GMAB embedded derivatives — — — — 186 —

IUL embedded derivatives — — — ( 29 ) — —

Fixed deferred indexed annuity embedded derivatives — — — ( 3 ) — —

Structured variable annuity embedded derivatives — — — — ( 3 ) —

SMC embedded derivatives — ( 2 ) — — — —

Total gain (loss) $ — $ — $ 41 $ 10 $ ( 691 ) $ 11

Nine Months Ended September 30, 2020

Three Months Ended March 31, 2021

Interest rate contracts $ — $ — $ ( 1 ) $ — $ ( 1,825 ) $ —

13 unchanged sentences

The Company economically hedges the aggregate exposure related to the indexed portion of structured variable annuities and the GMAB and non-life contingent GMWB provisions using options, swaptions, swaps and futures.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The deferred premium associated with certain of the above options and swaptions is paid or received semi-annually over the life of the contract or at maturity.

The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of September 30, 2021:

The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of March 31, 2022:

Premiums Payable Premiums Receivable

2 unchanged sentences

Total $ 708 $ 368

(1) 2021 amounts represent the amounts payable and receivable for the period from October 1, 2021 to December 31, 2021.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

(1) 2022 amounts represent the amounts payable and receivable for the period from April 1, 2022 to December 31, 2022.

Actual timing and payment amounts may differ due to future settlements, modifications or exercises of the contracts prior to the full premium being paid or received.

6 unchanged sentences

The equity component of structured variable annuity, IUL and stock market certificate product obligations are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings.

As a means of economically hedging its obligations under the provisions of these products, the Company enters into index options and futures contracts.

The Company enters into futures, credit default swaps and commodity swaps to manage its exposure to price risk arising from seed money investments in proprietary investment products.

As a means of economically hedging its obligations under the provisions of these products, the Company enters into interest rate swaps, index options and futures contracts.

The Company enters into futures, credit default swaps, commodity swaps, total return swaps and foreign currency forwards to manage its exposure to price risk arising from seed money investments in proprietary investment products.

The Company enters into foreign currency forward contracts to economically hedge its exposure to certain foreign transactions.

The Company enters into futures contracts and total return swaps to economically hedge its exposure related to compensation plans.

The Company enters into futures contracts, total return swaps and foreign currency forwards to economically hedge its exposure related to compensation plans.

The Company enters into interest rate swaps to offset interest rate changes on unrealized gains or losses for certain investments.

Cash Flow Hedges

The Company has designated derivative instruments as a cash flow hedge of interest rate exposure on forecasted debt interest payments.

The Company has designated derivative instruments as a cash flow hedge for equity exposure of certain compensation-related liabilities and interest rate exposure on forecasted debt interest payments.

For derivative instruments that qualify as cash flow hedges, the gain or loss on the derivative instruments is reported in AOCI and reclassified into earnings when the hedged item or transaction impacts earnings.

The amount that is reclassified into earnings is presented within the same line item as the earnings impact of the hedged item in interest and debt expense.

For the three months and nine months ended September 30, 2021 and 2020, the amounts reclassified from AOCI to earnings related to cash flow hedges were immaterial.

The estimated net amount recorded in AOCI as of September 30, 2021 that the Company expects to reclassify to earnings as a reduction to interest and debt expense within the next twelve months is $ 0.5 million.

For the three months ended March 31, 2022 and 2021, the amounts reclassified from AOCI to earnings related to cash flow hedges were immaterial.

The estimated net amount recorded in AOCI as of March 31, 2022 that the Company expects to reclassify to earnings as a reduction to interest and debt expense within the next twelve months is $ 0.6 million.

Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is 14 years and relates to forecasted debt interest payments.

See Note 14 for a rollforward of net unrealized derivative gains (losses) included in AOCI related to cash flow hedges.

Fair Value Hedges

The Company entered into and designated as a fair value hedge an interest rate swap to convert senior notes due 2020 from fixed rate debt to floating rate debt.

The interest rate swap related to the senior notes due March 2020 was settled during the first quarter of 2020 when the debt was repaid.

The swap had identical terms as the underlying debt being hedged.

The Company recognized gains and losses on the derivatives and the related hedged items within interest and debt expense.

The Company has not had any fair value hedges since March 2020.

The following table is a summary of the impact of derivatives designated as hedges on the Consolidated Statements of Operations:

Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020

(in millions)

Total interest and debt expense per Consolidated Statements of Operations $ 37 $ 124

Gain (loss) on interest rate contracts designated as fair value hedges:

Hedged items $ — $ 1

Derivatives designated as fair value hedges — ( 1 )

Gain (loss) on interest rate contracts designated as cash flow hedges:

Amount of gain (loss) reclassified from AOCI into income $ 1 $ 1

AMERIPRISE FINANCIAL, INC.

3 unchanged sentences

As the Company determined that the forward contracts are effective, the change in fair value of the derivatives is recognized in AOCI as part of the foreign currency translation adjustment.

For the three months ended September 30, 2021 and 2020, the Company recognized a gain of $ 0.7 million and a loss of $ 2.5 million, respectively, in OCI.

For the nine months ended September 30, 2021 and 2020, the Company recognized a loss of $ 0.2 million and a gain of $ 3 million, respectively, in OCI.

For the three months ended March 31, 2022 and 2021, the Company recognized a gain of $ 4 million and a loss of $ 0.5 million, respectively, in OCI.

Credit risk associated with the Company’s derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract.

5 unchanged sentences

If these termination provisions were to be triggered, the Company’s counterparty could require immediate settlement of any net liability position.

As of September 30, 2021 and December 31, 2020, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $ 382 million and $ 326 million, respectively.

The aggregate fair value of assets posted as collateral for such instruments as of September 30, 2021 and December 31, 2020 was $ 378 million and $ 324 million, respectively.

If the credit contingent provisions of derivative contracts in a net liability position as of September 30, 2021 and December 31, 2020 were triggered, the aggregate fair value of additional assets that would be required to be posted as collateral or needed to settle the instruments immediately would have been $ 4 million and $ 2 million, respectively.

As of March 31, 2022 and December 31, 2021, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $ 467 million and $ 383 million, respectively.

The aggregate fair value of assets posted as collateral for such instruments as of March 31, 2022 and December 31, 2021 was $ 462 million and $ 383 million, respectively.

If the credit contingent provisions of derivative contracts in a net liability position as of March 31, 2022 and December 31, 2021 were triggered, the aggregate fair value of additional assets that would be required to be posted as collateral or needed to settle the instruments immediately would have been $ 5 million and nil , respectively.

Shareholders’ Equity

The following tables provide the amounts related to each component of OCI:

Three Months Ended September 30,

Pretax Income Tax Benefit (Expense) Net of Tax Pretax Income Tax Benefit (Expense) Net of Tax

(in millions)

Net unrealized gains (losses) on securities:

Net unrealized gains (losses) on securities arising during the period (1)

$ ( 79 ) $ 21 $ ( 58 ) $ 225 $ ( 53 ) $ 172

Reclassification of net (gains) losses on securities included in net income (2)

( 502 ) 105 ( 397 ) ( 4 ) 1 ( 3 )

Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables 147 ( 31 ) 116 ( 94 ) 20 ( 74 )

Net unrealized gains (losses) on securities ( 434 ) 95 ( 339 ) 127 ( 32 ) 95

Foreign currency translation ( 28 ) 6 ( 22 ) 27 — 27

Total other comprehensive income (loss) $ ( 462 ) $ 101 $ ( 361 ) $ 154 $ ( 32 ) $ 122

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Nine Months Ended September 30,

Three Months Ended March 31,

Pretax Income Tax Benefit (Expense) Net of Tax Pretax Income Tax Benefit (Expense) Net of Tax

7 unchanged sentences

Net unrealized gains (losses) on securities ( 1,096 ) 243 ( 853 ) ( 440 ) 100 ( 340 )

Net unrealized gains (losses) on derivatives:

Net unrealized gains (losses) on derivatives arising during the period

Net unrealized gains (losses) on derivatives 1 — 1 — — —

Defined benefit plans:

Net gains (losses) — — — 37 ( 8 ) 29

Defined benefit plans — — — 37 ( 8 ) 29

Foreign currency translation ( 58 ) 12 ( 46 ) ( 1 ) — ( 1 )

2 unchanged sentences

(2) Reclassification amounts are recorded in Net investment income.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Other comprehensive income (loss) related to net unrealized gains (losses) on securities includes three components:

(i) unrealized gains (losses) that arose from changes in the fair value of securities that were held during the period;

(ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit impairments to credit losses;

(i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period;

and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates.

The following tables present the changes in the balances of each component of AOCI, net of tax:

The following table presents the changes in the balances of each component of AOCI, net of tax:

Net Unrealized Gains (Losses)

3 unchanged sentences

(in millions)

Balance, July 1, 2021

$ 784 $ 5 $ ( 175 ) $ ( 153 ) $ ( 1 ) $ 460

OCI before reclassifications 58 — — ( 22 ) — 36

Amounts reclassified from AOCI ( 397 ) — — — — ( 397 )

Total OCI ( 339 ) — — ( 22 ) — ( 361 )

Balance, September 30, 2021

$ 445 $ 5 $ ( 175 ) $ ( 175 ) $ ( 1 ) $ 99

Balance, January 1, 2022

3 unchanged sentences

Total OCI ( 853 ) 1 — ( 46 ) — ( 898 )

Balance, September 30, 2021

Balance, March 31, 2022

$ ( 535 ) $ 5 $ ( 151 ) $ ( 213 ) $ ( 1 ) $ ( 895 )

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Net Unrealized Gains (Losses)

3 unchanged sentences

(in millions)

Balance, July 1, 2020

$ 749 $ 6 $ ( 138 ) $ ( 222 ) $ ( 1 ) $ 394

OCI before reclassifications 98 — — 27 — 125

Amounts reclassified from AOCI ( 3 ) — — — — ( 3 )

Total OCI 95 — — 27 — 122

Balance, September 30, 2020

$ 844 $ 6 $ ( 138 ) $ ( 195 ) $ ( 1 ) $ 516

Balance, January 1, 2021

1 unchanged sentence

OCI before reclassifications ( 301 ) — 29 ( 1 ) — ( 273 )

Amounts reclassified from AOCI ( 39 ) — — — — ( 39 )

Total OCI ( 340 ) — 29 ( 1 ) — ( 312 )

Balance, September 30, 2020

Balance, March 31, 2021

$ 643 $ 5 $ ( 175 ) $ ( 155 ) $ ( 1 ) $ 317

For the nine months ended September 30, 2021 and 2020, the Company repurchased a total of 5.5 million shares and 6.3 million shares, respectively, of its common stock for an aggregate cost of $ 1.3 billion and $ 956 million, respectively.

For the three months ended March 31, 2022 and 2021, the Company repurchased a total of 1.4 million shares and 1.7 million shares, respectively, of its common stock for an aggregate cost of $ 429 million and $ 363 million, respectively.

In August 2020, the Company’s Board of Directors authorized a repurchase of up to $ 2.5 billion for the repurchase of shares of the Company’s common stock through September 30, 2022.

As of September 30, 2021, the Company had $ 932 million remaining under the share repurchase authorization.

On January 26, 2022, the Company’s Board of Directors authorized an additional $ 3.0 billion for the repurchase of the Company’s common stock through March 31, 2024.

As of March 31, 2022, the Company had $ 3.0 billion remaining under the share repurchase authorization.

The Company may also reacquire shares of its common stock under its share-based compensation plans related to restricted stock awards and certain option exercises.

1 unchanged sentence

These vested restricted shares are reacquired by the Company and the Company’s payment of the holders’ income tax obligations are recorded as a treasury share purchase.

For the nine months ended September 30, 2021 and 2020, the Company reacquired 0.3 million shares and 0.3 million shares, respectively, of its common stock through the surrender of shares upon vesting and paid in the aggregate $ 69 million and $ 51 million, respectively, related to the holders’ income tax obligations on the vesting date.

For the three months ended March 31, 2022 and 2021, the Company reacquired 0.3 million shares and 0.3 million shares, respectively, of its common stock through the surrender of shares upon vesting and paid in the aggregate $ 89 million and $ 57 million, respectively, related to the holders’ income tax obligations on the vesting date.

Option holders may elect to net settle their vested awards resulting in the surrender of the number of shares required to cover the strike price and tax obligation of the options exercised.

These shares are reacquired by the Company and recorded as treasury shares.

For the nine months ended September 30, 2021 and 2020, the Company reacquired 0.9 million shares and 0.7 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $ 209 million and $ 128 million, respectively.

During the nine months ended September 30, 2021 and 2020, the Company reissued 0.4 million and 0.5 million, respectively, treasury shares for restricted stock award grants, performance share units and issuance of shares vested under advisor deferred compensation plans.

The Company’s effective tax rate was 18.8 % and 23.5 % for the three months ended September 30, 2021 and 2020, respectively.

The Company’s effective tax rate was 17.1 % and 17.4 % for the nine months ended September 30, 2021 and 2020, respectively.

The effective tax rate for the three months ended September 30, 2021 is lower than the statutory tax rate as a result of tax preferred items including low income housing tax credits, partially offset by state income taxes, net of federal benefit.

The effective tax rate for the nine months ended September 30, 2021 is lower than the statutory tax rate as a result of tax preferred items including low income housing tax credits, incentive compensation, and the dividends received deduction, partially offset by state income taxes, net of federal benefit.

The Company recorded a pretax loss for the three months ended September 30, 2020.

Tax benefits applied to a pretax loss increase the effective tax rate.

The effective tax rate for the three months ended September 30, 2020 is higher than the statutory tax rate due to tax benefits including low income housing tax credits and dividends received deduction.

The effective tax rate for the nine months ended September 30, 2020 is lower than the statutory rate as a result of tax preferred items including low income housing tax credits and dividends received deduction, partially offset by state income taxes, net of federal benefit.

The lower effective tax rate for the three months ended September 30, 2021 is the result of current period pretax income compared to the prior period pretax loss and a decrease in tax preferred items including low income housing tax credits and the dividends received deduction, increases in incentive compensation partially offset by state income taxes, net of federal benefit.

For the three months ended March 31, 2022 and 2021, the Company reacquired 0.2 million shares and 0.6 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $ 62 million and $ 134 million, respectively.

During the three months ended March 31, 2022 and 2021, the Company reissued 0.5 million and 0.3 million, respectively, treasury shares for restricted stock award grants, performance share units and issuance of shares vested under advisor deferred compensation plans.

The Company’s effective tax rate was 17.6 % and 11.3 % for the three months ended March 31, 2022 and 2021, respectively.

The effective tax rate for the three months ended March 31, 2022 is lower than the statutory tax rate as a result of tax preferred items including incentive compensation, foreign tax credits, and low income housing tax credits, partially offset by state income taxes, net of federal benefit.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $ 16 million, net of federal benefit, which will expire beginning December 31, 2021.

The effective tax rate for the three months ended March 31, 2021 is lower than the statutory tax rate as a result of tax preferred items including incentive compensation, low income housing tax credits, foreign tax credits and dividends received deduction, partially offset by state income taxes, net of federal benefit.

The higher effective tax rate for the three months ended March 31, 2022 compared to March 31, 2021 is primarily the result of higher pretax income and a decrease in low income housing tax credits, partially offset by an increase in incentive compensation in the current period compared to the prior period.

Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $ 12 million, net of federal benefit, which will expire beginning December 31, 2022 and foreign net operating losses of $ 40 million.

The Company is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized.

2 unchanged sentences

Consideration is given to, among other things in making this determination, (i) future taxable income exclusive of reversing temporary differences and carryforwards, (ii) future reversals of existing taxable temporary differences, (iii) taxable income in prior carryback years, and (iv) tax planning strategies.

Based on analysis of the Company’s tax position, management believes it is more likely than not that the Company will not realize certain state net operating losses of $ 12 million, state deferred tax assets of $ 2 million and foreign deferred tax assets of $ 1 million;

Based on analysis of the Company’s tax position, management believes it is more likely than not that the Company will not realize certain state net operating losses of $ 11 million, state deferred tax assets of $ 3 million and foreign net operating losses of $ 18 million;

therefore, a valuation allowance has been established.

The valuation allowance was $ 15 million as of both September 30, 2021 and December 31, 2020.

As of September 30, 2021 and December 31, 2020, the Company had $ 126 million and $ 110 million, respectively, of gross unrecognized tax benefits.

If recognized, approximately $ 95 million and $ 80 million, net of federal tax benefits, of unrecognized tax benefits as of September 30, 2021 and December 31, 2020, respectively, would affect the effective tax rate.

The valuation allowance was $ 32 million as of both March 31, 2022 and December 31, 2021.

As of March 31, 2022 and December 31, 2021, the Company had $ 130 million and $ 125 million, respectively, of gross unrecognized tax benefits.

If recognized, approximately $ 99 million and $ 95 million, net of federal tax benefits, of unrecognized tax benefits as of March 31, 2022 and December 31, 2021, respectively, would affect the effective tax rate.

It is reasonably possible that the total amount of unrecognized tax benefits will change in the next 12 months.

1 unchanged sentence

The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision.

The Company recognized nil and a net decrease of $ 1 million in interest and penalties for the three and nine months ended September 30, 2021, respectively.

The Company recognized a net increase of $ 1 million and $ 2 million in interest and penalties for the three and nine months ended September 30, 2020, respectively.

As of September 30, 2021 and December 31, 2020, the Company had a payable of $ 9 million and $ 10 million, respectively, related to accrued interest and penalties.

The Company recognized a net increase of $ 1 million and a net decrease of $ 2 million in interest and penalties for the three months ended March 31, 2022 and 2021, respectively.

As of March 31, 2022 and December 31, 2021, the Company had a payable of $ 11 million and $ 10 million, respectively, related to accrued interest and penalties.

The Company or one or more of its subsidiaries files income tax returns in the U.S.

2 unchanged sentences

The IRS is currently auditing the Company’s U.S.

income tax returns for 2016, 2017 and 2018.

income tax returns for 2016 through 2020.

The Company’s state income tax returns are currently under examination by various jurisdictions for years ranging from 2015 through 2020.

14 unchanged sentences

security of client information;

trading activity and the Company’s monitoring and supervision of such activity;

and transaction monitoring systems and controls.

The Company has cooperated and will continue to cooperate with the applicable regulators.

trading activity and the Company’s monitoring

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

and supervision of such activity;

and transaction monitoring systems and controls.

The Company has cooperated and will continue to cooperate with the applicable regulators.

These legal proceedings are subject to uncertainties and, as such, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to reasonably estimate the amount of any loss.

8 unchanged sentences

Guaranty Fund Assessments

RiverSource Life and RiverSource Life of NY are required by law to be a member of the guaranty fund association in every state where they are licensed to do business.

RiverSource Life and RiverSource Life Insurance Co.

of New York (“RiverSource Life of NY”) are required by law to be a member of the guaranty fund association in every state where they are licensed to do business.

In the event of insolvency of one or more unaffiliated insurance companies, the Company could be adversely affected by the requirement to pay assessments to the guaranty fund associations.

2 unchanged sentences

The Company has a liability for estimated guaranty fund assessments and a related premium tax asset.

As of both September 30, 2021 and December 31, 2020, the estimated liability was $ 12 million.

As of both September 30, 2021 and December 31, 2020, the related premium tax asset was $ 10 million.

As of both March 31, 2022 and December 31, 2021, the estimated liability was $ 12 million.

As of both March 31, 2022 and December 31, 2021, the related premium tax asset was $ 10 million.

The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known.

1 unchanged sentence

The computations of basic and diluted earnings per share is as follows:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions, except per share amounts)

6 unchanged sentences

Diluted $ 6.55 $ 3.58

(1) Diluted shares used in this calculation represent basic shares due to the net loss.

Using actual diluted shares would result in anti-dilution.

The calculation of diluted earnings per share excludes the incremental effect of 1.5 million options as of September 30, 2020 due to their anti-dilutive effect.

The calculation of diluted earnings per share excludes the incremental effect of 0.2 million and 0.3 million options as of March 31, 2022 and 2021 respectively, due to their anti-dilutive effect.

AMERIPRISE FINANCIAL, INC.

10 unchanged sentences

Effective in the third quarter of 2021, management has excluded the impacts of block transfer reinsurance transactions from the adjusted operating measures.

Prior periods presented were not impacted.

Prior periods have been updated to reflect this change to be consistent with the current period presentation.

Adjusted operating earnings is defined as adjusted operating net revenues less adjusted operating expenses.

8 unchanged sentences

The market impact also includes certain valuation adjustments made in accordance with FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosures, including the impact on embedded derivative values of discounting projected benefits to reflect a current estimate of the Company’s life insurance subsidiary’s nonperformance spread.

The following tables summarize selected financial information by segment and reconciles segment totals to those reported on the consolidated financial statements:

September 30, 2021 December 31, 2020

The following tables summarize selected financial information by segment and reconcile segment totals to those reported on the consolidated financial statements:

March 31, 2022 December 31, 2021

(in millions)

7 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions)

3 unchanged sentences

Asset Management

915 739 2,622 2,093

Retirement & Protection Solutions 772 787

Corporate & Other

113 132 371 412

Eliminations (1)(2)

Elimination of segment revenues (1)

( 352 ) ( 379 )

Total segment adjusted operating net revenues

3,515 2,977 10,156 8,693

Net realized gains (losses) 17 57

1 unchanged sentence

Market impact on non-traditional long-duration products, net 26 5

Mean reversion related impacts — — 1 —

Market impact of hedges on investments ( 23 ) — ( 40 ) —

Block transfer reinsurance transaction impacts ( 644 ) — ( 644 ) —

Total net revenues per consolidated statements of operations $ 3,655 $ 3,350

(1) Represents the elimination of intersegment revenues recognized for the three months ended September 30, 2021 and 2020 in each segment as follows:

(1) Represents the elimination of intersegment revenues recognized for the three months ended March 31, 2022 and 2021 in each segment as follows:

Advice & Wealth Management ($ 228 million and $ 250 million, respectively);

2 unchanged sentences

and Corporate & Other ( nil and nil , respectively).

(2) Represents the elimination of intersegment revenues recognized for the nine months ended September 30, 2021 and 2020 in each segment as follows:

Advice & Wealth Management ($ 777 million and $ 649 million, respectively);

Asset Management ($ 39 million and $ 39 million, respectively);

Retirement & Protection Solutions ($ 356 million and $ 319 million, respectively);

and Corporate & Other ($ 1 million and $( 1 ) million, respectively).

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions)

1 unchanged sentence

Advice & Wealth Management

$ 459 $ 320 $ 1,271 $ 969

Asset Management

285 198 766 496

Retirement & Protection Solutions 191 183

2 unchanged sentences

Total segment adjusted operating earnings

850 227 2,410 1,456

Net realized gains (losses)

12 4 78 ( 18 )

Net income (loss) attributable to consolidated investment entities

2 — ( 1 ) ( 2 )

Market impact on non-traditional long-duration products, net 134 ( 396 )

Mean reversion related impacts

9 17 107 ( 30 )

Market impact of hedges on investments ( 23 ) — ( 40 ) —

Block transfer reinsurance transaction impacts 521 — 521 —

Integration and restructuring charges

( 7 ) ( 1 ) ( 14 ) ( 4 )

Pretax income per consolidated statements of operations $ 923 $ 493

$ 1,270 $ ( 184 ) $ 2,484 $ 1,641

AMERIPRISE FINANCIAL, INC.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements