What changed in this filing

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Item 1. Financial Statements

2022-08-01 compared with 2022-05-02 · 556 added, 294 removed, 1639 unchanged (34% of the section changed)

1 unchanged sentence

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in millions, except per share amounts)

21 unchanged sentences

See Notes to Consolidated Financial Statements.

AMERIPRISE FINANCIAL, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in millions)

2 unchanged sentences

Foreign currency translation adjustment

( 122 ) 2 ( 168 ) 1

Net unrealized gains (losses) on securities ( 776 ) 141 ( 1,629 ) ( 199 )

Net unrealized gains (losses) on derivatives

( 2 ) — ( 1 ) —

Defined benefit plans

1 unchanged sentence

( 900 ) 143 ( 1,798 ) ( 169 )

Total comprehensive income $ ( 137 ) $ 125

Total comprehensive income (loss) $ ( 144 ) $ 734 $ ( 281 ) $ 859

See Notes to Consolidated Financial Statements.

1 unchanged sentence

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

(in millions, except share amounts)

49 unchanged sentences

(in millions, except per share data)

Balances at April 1, 2022

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

Net income — — — 756 — — 756

Other comprehensive loss, net of tax — — — — — ( 900 ) ( 900 )

Dividends to shareholders — — — ( 142 ) — — ( 142 )

Repurchase of common shares ( 1,794,376 ) — — — ( 477 ) — ( 477 )

Share-based compensation plans 87,024 — 32 — 25 — 57

Balances at June 30, 2022

108,438,618 $ 3 $ 9,380 $ 18,767 $ ( 22,051 ) $ ( 1,795 ) $ 4,304

Balances at April 1, 2021

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

Net income — — — 591 — — 591

Other comprehensive income, net of tax — — — — — 143 143

Dividends to shareholders — — — ( 134 ) — — ( 134 )

Repurchase of common shares ( 1,898,474 ) — — — ( 484 ) — ( 484 )

Share-based compensation plans 207,637 — 67 — 1 — 68

Balances at June 30, 2021

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

Balances at January 1, 2022

5 unchanged sentences

Share-based compensation plans 1,302,219 — 160 — 71 — 231

Balances at March 31, 2021

Balances at June 30, 2022

108,438,618 $ 3 $ 9,380 $ 18,767 $ ( 22,051 ) $ ( 1,795 ) $ 4,304

6 unchanged sentences

Share-based compensation plans 2,019,993 — 227 — 34 — 261

Balances at March 31, 2022

Balances at June 30, 2021

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

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended March 31,

Six Months Ended June 30,

(in millions)

Cash Flows from Operating Activities

$ 1,517 $ 1,028

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

5 unchanged sentences

Loss from equity method investments

Impairments and provision for loan and credit losses 9 7

Net (gains) losses of consolidated investment entities

4 unchanged sentences

Policyholder account balances, future policy benefits and claims, net

( 168 ) ( 1,050 )

Derivatives, net of collateral

( 41 ) ( 122 )

( 211 ) ( 236 )

Brokerage deposits

Accounts payable and accrued expenses

( 461 ) ( 163 )

Current income tax, net 41 ( 286 )

2 unchanged sentences

Net cash provided by (used in) operating activities

409 ( 1,000 )

Cash Flows from Investing Activities

8 unchanged sentences

Purchase of other investments

( 61 ) ( 54 )

Purchase of investments by consolidated investment entities

4 unchanged sentences

Cash paid for written options with deferred premiums

( 120 ) ( 210 )

Cash received from written options with deferred premiums

Cash returned (paid) for acquisition of business, net of cash acquired 34 —

Cash paid for deposit receivables ( 23 ) ( 4 )

4 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)

Three Months Ended March 31,

Six Months Ended June 30,

(in millions)

2 unchanged sentences

Proceeds from additions

$ 1,835 $ 1,397

Maturities, withdrawals and cash surrenders

19 unchanged sentences

Repayments of debt by consolidated investment entities

( 1 ) ( 754 )

Net cash provided by (used in) financing activities

2,607 ( 101 )

Effect of exchange rate changes on cash

10 unchanged sentences

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

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

(in millions)

20 unchanged sentences

All adjustments made were of a normal recurring nature.

For the six months ended June 30, 2022, the Company recorded an out-of-period correction of $ 256 million, net of tax ($ 140 million, net of tax, for the three months ended June 30, 2022), in other comprehensive income (“OCI”) resulting in an increase to total equity and total comprehensive income, correcting the shadow unearned revenue liability balance associated with universal life insurance products.

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 impact of the errors, individually and in the aggregate, was not material to the current and prior period financial statements.

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

23 unchanged sentences

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.

Early adoption is permitted, including adoption in an interim

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

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

In August 2018, the FASB updated the accounting standard related to long-duration insurance contracts.

The guidance revises key elements of the measurement models and disclosure requirements for long-duration insurance contracts issued by insurers and reinsurers.

The guidance establishes a significant new category of benefit features called market risk benefits that protect the contractholder from other-than-nominal capital market risk and expose the insurer to that risk.

Insurers will have to measure market risk benefits at fair value.

Market risk benefits include variable annuity guaranteed benefits (i.e.

guaranteed minimum death, withdrawal, withdrawal for life, accumulation and income benefits).

The portion of the change in fair value attributable to a change in the instrument-specific credit risk of market risk benefits in a liability position will be recorded in OCI.

Significant changes also relate to the measurement of the liability for future policy benefits for nonparticipating traditional long-duration insurance contracts and immediate annuities with a life contingent feature including the following:

• Insurers will be required to review and update the cash flow assumptions used to measure the liability for future policy benefits rather than using assumptions locked in at contract inception.

The review of assumptions to measure the liability for all future policy benefits will be required annually at the same time each year, or more frequently if suggested by experience.

The effect of updating assumptions will be measured on a retrospective catch-up basis and presented separate from the ongoing policyholder benefit expense in the statement of operations in the period the update is made.

This new unlocking process will be required for the Company’s term and whole life insurance, disability income, long term care insurance and immediate annuities with a life contingent feature.

• The discount rate used to measure the liability for future policy benefits will be standardized.

The current requirement to use a discount rate reflecting expected investment yields will change to an upper-medium grade (low credit risk) fixed income corporate instrument yield (generally interpreted as an “A” rating) reflecting the duration characteristics of the liability.

Entities will be required to update the discount rate at each reporting date with the effect of discount rate changes reflected in OCI.

• The current premium deficiency test is being replaced with a net premium ratio cap of 100%.

If the net premium ratio (i.e.

the ratio of the present value of total expected benefits and related expenses to the present value of total expected premiums) exceeds 100%, insurers are required to recognize a loss in the statement of operations in the period.

Contracts from different issue years will no longer be permitted to be grouped to determine contracts in a loss position.

In addition, the update requires deferred acquisition costs (“DAC”) and deferred sales inducement costs (“DSIC”) relating to all long-duration contracts and most investment contracts to be amortized on a straight-line basis over the expected life of the contract independent of profit emergence.

Under the new guidance, interest will not accrue to the deferred balance and DAC and DSIC will not be subject to an impairment test.

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.

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 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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The guidance revises elements of the measurement models and disclosure requirements for long-duration insurance contracts issued by insurers.

Adoption of the accounting standard will not impact overall cash flows, insurance subsidiaries’ dividend capacity, or regulatory capital requirements.

When the Company adopts the standard as of January 1, 2021 (the “transition date”), opening equity will be adjusted for the adoption impacts to retained earnings and accumulated other comprehensive income (loss) (“AOCI”) and prior periods presented (i.e.

2021 and 2022) will be restated.

The Company currently estimates the adoption impact as of January 1, 2021 to be a reduction in total equity of $ 2.3 billion to $ 2.6 billion, of which a significant portion will be reflected in AOCI.

However, as of June 30, 2022, the impact on total equity is estimated to be a reduction of $ 200 million to $ 400 million as a result of changes in the equity, credit, and rate environment subsequent to the transition date.

The Company utilizes a governance framework to guide our adoption process and is managing a detailed implementation plan to support the timely application of the standard in the first quarter of 2023.

The Company continues to refine its technology solutions and internal controls environment.

These activities include, but are not limited to, modifications of actuarial valuation models, and accounting and financial reporting processes and systems.

The estimated adoption impact at transition date and the impact to periods subsequent to transition date is subject to change as the Company completes its adoption process.

Revenue from Contracts with Customers

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 March 31, 2022

Three Months Ended June 30, 2022

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

25 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Three Months Ended March 31, 2021

Three Months Ended June 30, 2021

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

23 unchanged sentences

Total net revenues $ 1,714 $ 865 $ 690 $ 118 $ 3,387 $ 31 $ 3,418

Six Months Ended June 30, 2022

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 $ — $ 1,187 $ — $ — $ 1,187 $ — $ 1,187

Institutional — 368 — — 368 — 368

Advisory fees 2,335 — — — 2,335 — 2,335

Financial planning fees 196 — — — 196 — 196

Transaction and other fees 189 109 31 — 329 — 329

Total management and financial advice fees 2,720 1,664 31 — 4,415 — 4,415

Distribution fees:

Mutual funds 390 123 — — 513 — 513

Insurance and annuity 437 88 183 — 708 — 708

Other products 244 — — — 244 — 244

Total distribution fees 1,071 211 183 — 1,465 — 1,465

Other revenues 107 6 — — 113 — 113

Total revenue from contracts with customers 3,898 1,881 214 — 5,993 — 5,993

Revenue from other sources (1)

205 17 1,318 235 1,775 94 1,869

Total segment gross revenues 4,103 1,898 1,532 235 7,768 94 7,862

Banking and deposit interest expense ( 5 ) — — — ( 5 ) — ( 5 )

Total segment net revenues 4,098 1,898 1,532 235 7,763 94 7,857

Elimination of intersegment revenues ( 449 ) ( 23 ) ( 217 ) — ( 689 ) ( 5 ) ( 694 )

Total net revenues $ 3,649 $ 1,875 $ 1,315 $ 235 $ 7,074 $ 89 $ 7,163

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Six Months Ended June 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 $ — $ 1,098 $ — $ — $ 1,098 $ — $ 1,098

Institutional — 254 — — 254 — 254

Advisory fees 2,141 — — — 2,141 — 2,141

Financial planning fees 181 — — — 181 — 181

Transaction and other fees 182 108 34 — 324 — 324

Total management and financial advice fees 2,504 1,460 34 — 3,998 — 3,998

Distribution fees:

Mutual funds 419 136 — — 555 — 555

Insurance and annuity 492 96 200 — 788 — 788

Other products 210 — — — 210 — 210

Total distribution fees 1,121 232 200 — 1,553 — 1,553

Other revenues 100 8 — 1 109 — 109

Total revenue from contracts with customers 3,725 1,700 234 1 5,660 — 5,660

Revenue from other sources (1)

141 7 1,361 258 1,767 133 1,900

Total segment gross revenues 3,866 1,707 1,595 259 7,427 133 7,560

Banking and deposit interest expense ( 7 ) — — ( 1 ) ( 8 ) — ( 8 )

Total segment net revenues 3,859 1,707 1,595 258 7,419 133 7,552

Elimination of intersegment revenues ( 516 ) ( 27 ) ( 234 ) ( 1 ) ( 778 ) ( 6 ) ( 784 )

Total net revenues $ 3,343 $ 1,680 $ 1,361 $ 257 $ 6,641 $ 127 $ 6,768

(1) Revenues not included in the scope of the revenue from contracts with customers standard.

18 unchanged sentences

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

The investment advisory performance obligation is considered a series of distinct services that are substantially the same and are satisfied each day over the contract term.

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

The investment advisory performance obligation is 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.

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

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, were $ 155 million and $ 157 million as of March 31, 2022 and December 31, 2021, respectively.

Contract liabilities for financial planning fees, which are included in Other liabilities, were $ 151 million and $ 157 million as of June 30, 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 and were $ 123 million and $ 126 million as of March 31, 2022 and December 31, 2021, respectively.

Capitalized costs to obtain these contracts are reported in Other assets and were $ 121 million and $ 126 million as of June 30, 2022 and December 31, 2021, respectively.

Transaction and Other Fees

7 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, were $ 39 million and nil as of March 31, 2022 and December 31, 2021, respectively.

Contract liabilities for custodial service fees, which are included in Other liabilities, were $ 26 million and nil as of June 30, 2022 and December 31, 2021, respectively.

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

12 unchanged sentences

These payments allow the outside parties to train and support the advisors, explain the features of their products and distribute marketing and educational materials, and support trading and operational systems necessary to enable the Company’s client servicing and production distribution efforts.

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

The Company earns

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

percentage, to the market value of assets invested.

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.

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

26 unchanged sentences

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.

The Company has an asset of $ 37 million and $ 39 million as of June 30, 2022 and December 31, 2021, respectively, 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 $ 609 million and $ 668 million as of March 31, 2022 and December 31, 2021, respectively.

Receivables related to revenues from contracts with customers were $ 561 million and $ 668 million as of June 30, 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 $ 28 million and $ 27 million as of March 31, 2022 and December 31, 2021, respectively.

The Company has unfunded commitments related to consolidated CLOs of $ 28 million and $ 27 million as of June 30, 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.

3 unchanged sentences

The assets of the CLOs cannot be used by the Company.

Scheduled debt payments are based on the performance of the CLO’s collateral pool.

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

Scheduled debt payments are based on the

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

level of effort required to provide those services.

performance of the CLO’s collateral pool.

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 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 $ 1 million as of both March 31, 2022 and December 31, 2021, 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 June 30, 2022 and December 31, 2021.

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 $ 44 million as of both March 31, 2022 and December 31, 2021, respectively.

The carrying value of the Company’s investment in property funds is reflected in other investments and was $ 42 million and $ 44 million as of June 30, 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 March 31, 2022 and December 31, 2021.

The carrying value of the Company’s investment in these entities is reflected in other investments and was nil as of both June 30, 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 $ 42 million and $ 43 million as of March 31, 2022 and December 31, 2021, respectively.

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 June 30, 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 $ 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 carrying value is reflected in other investments and was $ 115 million and $ 138 million as of June 30, 2022 and December 31, 2021, respectively.

The Company had a $ 8 million l iability recorded as of both June 30, 2022 and December 31, 2021 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.

12 unchanged sentences

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

March 31, 2022

June 30, 2022

Level 1 Level 2 Level 3 Total

22 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 $ 2.1 billion and $ 2.2 billion as of March 31, 2022 and December 31, 2021, respectively.

The estimated fair value of the CLOs’ debt was $ 2.1 billion and $ 2.2 billion as of June 30, 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 Other Assets

Common Stocks Syndicated Loans

(in millions)

Balance, January 1, 2022

Balance at April 1, 2022

Total gains (losses) included in:

Net income — ( 2 ) (1)

Purchases — 8

Settlements — ( 8 )

Transfers into Level 3 2 50

Transfers out of Level 3 — ( 50 )

Balance, March 31, 2022

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

Balance at June 30, 2022

Changes in unrealized gains (losses) included in net income relating to assets held at June 30, 2022

$ — $ ( 2 ) (1)

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Syndicated Loans

(in millions)

Balance at April 1, 2021

Settlements ( 19 )

Transfers into Level 3 28

Transfers out of Level 3 ( 50 )

Balance at June 30, 2021

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

Common Stocks Syndicated Loans Other Assets

(in millions)

Balance at January 1, 2022

Total gains (losses) included in:

— ( 3 ) (1) —

Transfers into Level 3

Transfers out of Level 3

— ( 92 ) ( 3 )

Balance at June 30, 2022

Changes in unrealized gains (losses) included in net income relating to assets held at June 30, 2022

$ — $ ( 3 ) (1) $ —

Syndicated Loans Other Assets

(in millions)

Balance, January 1, 2021

Balance at January 1, 2021

Total gains (losses) included in:

1 unchanged sentence

Transfers out of Level 3

Balance, March 31, 2021

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

Balance at June 30, 2021

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

$ ( 1 ) (1) $ —

(1) Included in Net investment income.

1 unchanged sentence

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 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.

All Level 3 measurements as of June 30, 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.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Determination of Fair Value

15 unchanged sentences

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:

March 31, 2022

June 30, 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 $ 2.1 billion and $ 2.2 billion as of March 31, 2022 and December 31, 2021, respectively.

The estimated fair value of the CLOs’ debt was $ 2.1 billion and $ 2.2 billion as of June 30, 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.

Gains and losses related to changes in the fair value of investments and gains and losses on sales of investments are also recorded in Net investment income.

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 ended March 31, 2022 and 2021.

Gains and losses related to the changes in fair value of investments and gains and losses on sales of investments are also recorded in Net investment income.

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

Carrying Value Weighted Average Interest Rate

March 31, 2022

June 30, 2022

December 31, 2021

March 31, 2022

June 30, 2022

December 31, 2021

5 unchanged sentences

The following is a summary of Ameriprise Financial investments:

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

(in millions)

6 unchanged sentences

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 March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in millions)

2 unchanged sentences

Affordable housing partnerships ( 11 ) ( 23 ) ( 26 ) ( 38 )

Other 36 7 59 27

Consolidated investment entities 18 18 37 54

1 unchanged sentence

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

March 31, 2022

June 30, 2022

Description of Securities

10 unchanged sentences

Total $ 35,817 $ 389 $ ( 1,916 ) $ ( 1 ) $ 34,289

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 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.

As of June 30, 2022 and December 31, 2021, accrued interest of $ 167 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 June 30, 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 $ 478 million and $ 314 million, respectively, may be sold, pledged or rehypothecated by the counterparty.

As of June 30, 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 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)

As of June 30, 2022 and December 31, 2021, the Company’s internal analysts rated $ 586 million and $ 400 million, respectively, of securities using criteria similar to those used by NRSROs.

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

March 31, 2022 December 31, 2021

June 30, 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 $ 35,817 $ 34,289 100 % $ 30,541 $ 32,050 100 %

(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 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.

As of both June 30, 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 June 30, 2022 and December 31, 2021.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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 March 31, 2022

Description of Securities June 30, 2022

Less than 12 Months 12 Months or More Total

6 unchanged sentences

State and municipal obligations 63 167 ( 15 ) 1 4 ( 1 ) 64 171 ( 16 )

government and agency obligations 26 1,045 ( 1 ) — — — 26 1,045 ( 1 )

Foreign government bonds and obligations 11 30 ( 3 ) 1 1 — 12 31 ( 3 )

1 unchanged sentence

Total 1,551 $ 27,246 $ ( 1,731 ) 149 $ 1,480 $ ( 185 ) 1,700 $ 28,726 $ ( 1,916 )

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 three months ended March 31, 2022 is primarily attributable to the impact of higher interest rates and wider 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 six months ended June 30, 2022 is primarily attributable to the impact of higher interest rates and wider credit spreads driven by continued market volatility, with no specific credit concerns.

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 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.

As of June 30, 2022 and December 31, 2021, approximately 95 % and 96 %, 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)

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

1 unchanged sentence

(in millions)

Balance at April 1, 2022

$ — $ — $ 1 $ 1

Charge-offs — — — —

Balance at June 30, 2022

$ — $ — $ 1 $ 1

Balance at April 1, 2021

$ — $ — $ — $ —

Charge-offs — — — —

Balance at June 30, 2021

$ — $ — $ — $ —

Balance at January 1, 2022

1 unchanged sentence

Charge-offs — — — —

Balance at March 31, 2022

Balance at June 30, 2022

$ — $ — $ 1 $ 1

2 unchanged sentences

Charge-offs ( 10 ) ( 1 ) — ( 11 )

Balance at March 31, 2021

Balance at June 30, 2021

$ — $ — $ — $ —

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 March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in millions)

1 unchanged sentence

Gross realized investment losses ( 11 ) — ( 11 ) ( 1 )

Other impairments ( 6 ) ( 13 ) ( 6 ) ( 13 )

Total $ ( 15 ) $ 1 $ 5 $ 51

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 March 31, 2022 were as follows:

There were no credit losses for the three and six months ended June 30, 2022 and 2021.

Other impairments for the three and six months ended June 30, 2022 and 2021 related to Available-for-Sale securities which the Company intended to sell.

See Note 14 for a rollforward of net unrealized investment gains (losses) included in AOCI.

Available-for-Sale securities by contractual maturity as of June 30, 2022 were as follows:

Amortized Cost Fair Value

12 unchanged sentences

As such, these securities were not included in the maturities distribution.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Financing Receivables

4 unchanged sentences

(in millions)

Balance, January 1, 2022

Balance at January 1, 2022

$ 47 $ 3 $ 50

Provisions 2 1 3

Balance, March 31, 2022

Charge-offs — ( 1 ) ( 1 )

Balance at June 30, 2022

$ 49 $ 3 $ 52

1 unchanged sentence

(in millions)

Balance, January 1, 2021

Balance at January 1, 2021

$ 66 $ 2 $ 68

1 unchanged sentence

Charge-offs ( 3 ) — ( 3 )

Balance, March 31, 2021

Balance at June 30, 2021

$ 50 $ 3 $ 53

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.

Accrued interest on commercial loans was $ 12 million and $ 13 million as of June 30, 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 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.

During the three months ended June 30, 2022 and 2021, the Company purchased $ 57 million and $ 24 million, respectively, of syndicated loans, and sold $ 1 million and $ 4 million, respectively, of syndicated loans.

During the six months ended June 30, 2022 and 2021, the Company purchased $ 57 million and $ 37 million, respectively, of syndicated loans, and sold $ 1 million and $ 8 million, respectively, of syndicated loans.

During the three months ended June 30, 2022 and 2021, the Company purchased $ 22 million and $ 4 million, respectively, of residential mortgage loans.

During the six months ended June 30, 2022 and 2021, the Company purchased $ 23 million and $ 6 million, respectively, of residential mortgage loans.

The allowance for credit losses for residential mortgage loans was not material as of both June 30, 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 $ 8 million and $ 9 million as of March 31, 2022 and December 31, 2021, respectively.

Nonperforming loans were $ 11 million and $ 9 million as of June 30, 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 March 31, 2022 and December 31, 2021.

Commercial mortgage loans which management has assigned its highest risk rating were less than 1 % of total commercial mortgage loans as of both June 30, 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 loans past due were nil as of March 31, 2022 and December 31, 2021, respectively.

Total commercial mortgage loans past due were $ 3 million and nil as of June 30, 2022 and December 31, 2021, respectively.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

March 31, 2022

June 30, 2022

Loan-to-Value Ratio 2022

21 unchanged sentences

Loans Percentage

March 31, 2022

June 30, 2022

December 31, 2021

March 31, 2022

June 30, 2022

December 31, 2021

16 unchanged sentences

Loans Percentage

March 31, 2022

June 30, 2022

December 31, 2021

March 31, 2022

June 30, 2022

December 31, 2021

11 unchanged sentences

Syndicated Loans

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

The recorded investment in syndicated loans as of June 30, 2022 and December 31, 2021 was $ 191 million and $ 149 million, respectively.

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

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

Total syndicated loans past due were nil as of June 30, 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:

March 31, 2022

June 30, 2022

Internal Risk Rating 2022 2021 2020 2019 2018 Prior Total

20 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 $ 5 million as of both March 31, 2022 and December 31, 2021.

The allowance for credit losses related to loans to advisors that have terminated their relationship with the Company was $ 7 million and $ 5 million as of June 30, 2022 and December 31, 2021, respectively.

AMERIPRISE FINANCIAL, INC.

1 unchanged sentence

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

March 31, 2022

June 30, 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 March 31, 2022 and December 31, 2021.

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

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

March 31, 2022

June 30, 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.

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

The margin loans balance was $ 1.3 billion and $ 1.2 billion as of June 30, 2022 and December 31, 2021, respectively.

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

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

As of both June 30, 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 $ 520 million and $ 467 million as of March 31, 2022 and December 31, 2021, respectively.

The pledged asset lines of credit balance was $ 601 million and $ 467 million as of June 30, 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 March 31, 2022 and December 31, 2021, there w as no allowance for credit losses on pledged asset lines of credit.

As of June 30, 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 were $ 7.6 billion and $ 7.9 billion as of June 30, 2022 and December 31, 2021, respectively.

Deposit receivables are 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 receivables as of March 31, 2022 and December 31, 2021.

Troubled Debt Restructurings

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 were no loans accounted for as a troubled debt restructuring by the Company during the three and six months ended June 30, 2022 and 2021.

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

6 unchanged sentences

Capitalization of acquisition costs 105 138

Amortization ( 248 ) ( 68 )

Impact of change in net unrealized (gains) losses on securities 330 48

Balance at March 31

Balance at June 30

$ 2,969 $ 2,650

2 unchanged sentences

Balance at January 1 $ 189 $ 189

Capitalization of sales inducement costs — 1

Amortization ( 24 ) ( 7 )

Impact of change in net unrealized (gains) losses on securities 10 5

Balance at March 31

Balance at June 30

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

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

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

(in millions)

11 unchanged sentences

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

( 17 ) ( 23 )

Other annuity liabilities 220 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 both March 31, 2022 and December 31, 2021 reported as a contra liability.

(2) Includes the fair value of GMAB embedded derivatives that was a net asset as of December 31, 2021 and the amount is presented as a contra liability.

AMERIPRISE FINANCIAL, INC.

1 unchanged sentence

Separate account liabilities consisted of the following:

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

(in millions)

13 unchanged sentences

by Benefit Type (1)

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Total Contract Value Contract Value in Separate Accounts Net Amount

23 unchanged sentences

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

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

at Risk Weighted Average Attained Age Net Amount

2 unchanged sentences

UL secondary guarantees $ 6,536 69 $ 6,564 68

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.

Structured variable annuity GMDB $ 523 63 $ 3 63

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

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

3 unchanged sentences

Incurred claims 13 1 ( 353 ) 63 50

— — ( 586 ) 6 31

( 3 ) — — — ( 9 )

Balance at March 31, 2022

Paid claims ( 7 ) — — — ( 20 )

Balance at June 30, 2022

$ 42 $ 6 $ 1,983 $ 40 $ 1,050

2 unchanged sentences

Incurred claims 9 — ( 900 ) ( 21 ) 69

3 — ( 1,570 ) ( 23 ) 32

( 1 ) — — — ( 8 )

Balance at March 31, 2021

Paid claims ( 2 ) — — — ( 16 )

Balance at June 30, 2021

$ 31 $ 6 $ 2,149 $ ( 20 ) $ 969

2 unchanged sentences

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

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

(in millions)

6 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

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

Outstanding Balance Stated Interest Rate

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

June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021

(in millions)

5 unchanged sentences

Senior notes due 2026 500 500 2.9 2.9

Senior notes due 2032 500 — 4.5 —

Finance lease liabilities 35 40 N/A N/A

9 unchanged sentences

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

On May 13, 2022, the Company issued $ 500 million of 4.5 % unsecured senior notes due May 13, 2032 and incurred debt issuance costs of $ 5 million.

Interest payments are due semi-annually in arrears on May 13 and November 13, commencing on November 13, 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 $ 1.2 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 fair value of the securities pledged is recorded in Investments and was $ 1.2 billion of commercial mortgage backed securities as of both June 30, 2022 and December 31, 2021, and $ 535 million and $ 581 million of residential mortgage backed securities as of June 30, 2022 and December 31, 2021, respectively.

The remaining maturity of outstanding FHLB advances was less than three months as of both June 30, 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.

1 unchanged sentence

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

As of both June 30, 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 March 31, 2022 and December 31, 2021.

The Company was in compliance with all such covenants as of both June 30, 2022 and December 31, 2021.

Fair Values of Assets and Liabilities

2 unchanged sentences

The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Valuation Hierarchy

2 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:

5 unchanged sentences

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

June 30, 2022

Level 1 Level 2 Level 3 Total

33 unchanged sentences

Equity derivative contracts 172 2,557 — 2,729

Credit derivative contracts — 2 — 2

Foreign exchange derivative contracts 4 9 — 13

45 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 $ 1.0 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.

(5) The Company’s adjustment for nonperformance risk resulted in a $ 598 million cumulative decrease to the embedded derivatives as of December 31, 2021.

(2) The fair value of the GMWB and GMAB embedded derivatives included $ 1.2 billion of individual contracts in a liability position and $ 185 million of individual contracts in an asset position (recorded as a contra liability) as of June 30, 2022.

(3) The fair value of the structured variable annuity embedded derivatives was a net asset as of June 30, 2022 and the amount is presented as a contra liability.

(4) The Company’s adjustment for nonperformance risk resulted in a $ 828 million cumulative decrease to the embedded derivatives as of June 30, 2022.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

(5) 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.

(6) The Company’s adjustment for nonperformance risk resulted in a $ 598 million cumulative decrease to the embedded derivatives as of December 31, 2021.

The following tables provide a summary of changes in Level 3 assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis:

Available-for-Sale Securities Receivables

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

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

(in millions)

Balance at January 1, 2022

Balance at April 1, 2022

$ 497 $ — $ 112 $ 7 $ 616 $ 55

5 unchanged sentences

Transfers out of Level 3 — — ( 112 ) — ( 112 ) —

Balance at March 31, 2022

Balance at June 30, 2022

$ 458 $ 139 $ — $ 21 $ 618 $ 49

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

Changes in unrealized gains (losses) in net income relating to assets held at June 30, 2022

$ ( 1 ) $ — $ — $ — $ ( 1 ) (1) $ —

Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2022

$ ( 11 ) $ — $ — $ — $ ( 11 ) $ —

Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities

1 unchanged sentence

(in millions)

Balance at January 1, 2022

Balance at April 1, 2022

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

4 unchanged sentences

Settlements ( 1 ) ( 29 ) ( 10 ) ( 14 ) ( 54 ) ( 5 )

Balance at March 31, 2022

Balance at June 30, 2022

$ 45 $ 719 $ 1,006 $ ( 362 ) (5) $ 1,408 $ 61

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

Changes in unrealized (gains) losses in net income relating to liabilities held at June 30, 2022

$ — $ ( 108 ) (2) $ 108 (3) $ ( 642 ) (3) $ ( 642 ) $ —

4 unchanged sentences

(in millions)

Balance at April 1, 2021

$ 812 $ 87 $ 30 $ 929

Total gains (losses) included in:

Other comprehensive income (loss) 2 — — 2

Purchases 21 — — 21

Settlements ( 28 ) — — ( 28 )

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

Balance at June 30, 2021

$ 391 $ — $ 6 $ 397

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

$ 2 $ — $ — $ 2

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 at April 1, 2021

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

Total (gains) losses included in:

Net income 2 (2) 8 (2) 525 (3) 101 (3) 636 1 (4)

Issues — ( 1 ) 89 ( 1 ) 87 4

Settlements — ( 28 ) 44 ( 10 ) 6 ( 4 )

Balance at June 30, 2021

$ 54 $ 928 $ 1,373 $ 214 $ 2,569 $ 44

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

$ — $ 8 (2) $ 529 (3) $ — $ 537 $ —

Available-for-Sale Securities Receivables

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

(in millions)

Balance at January 1, 2022

5 unchanged sentences

Settlements ( 33 ) — — — ( 33 ) ( 2 )

Balance at March 31, 2021

Transfers out of Level 3 — — ( 147 ) — ( 147 ) —

Balance at June 30, 2022

$ 458 $ 139 $ — $ 21 $ 618 $ 49

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

Changes in unrealized gains (losses) in net income relating to assets held at June 30, 2022

$ ( 1 ) $ — $ — $ — $ ( 1 ) (1) $ —

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

Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2022

$ ( 32 ) $ — $ — $ — $ ( 32 ) $ —

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities

5 unchanged sentences

Net income ( 9 ) (2) ( 140 ) (2) ( 575 ) (3) ( 766 ) (3) ( 1,490 ) — (4)

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

Issues — 8 171 18 197 14

Settlements ( 2 ) ( 54 ) ( 76 ) ( 20 ) ( 152 ) ( 11 )

Balance at March 31, 2021

Balance at June 30, 2022

$ 45 $ 719 $ 1,006 $ ( 362 ) (5) $ 1,408 $ 61

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

Changes in unrealized (gains) losses in net income relating to liabilities held at June 30, 2022

$ — $ ( 140 ) (2) $ ( 563 ) (3) $ ( 766 ) (3) $ ( 1,469 ) $ —

Available-for-Sale Securities

Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total

(in millions)

Balance at January 1, 2021

$ 772 $ 9 $ 32 $ 813

Total gains (losses) included in:

Net income — — ( 1 ) ( 1 ) (1)

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

Purchases 67 78 — 145

Settlements ( 29 ) — ( 1 ) ( 30 )

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

Balance at June 30, 2021

$ 391 $ — $ 6 $ 397

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

$ — $ — $ ( 1 ) $ ( 1 ) (1)

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 at January 1, 2021

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

Total (gains) losses included in:

Net income 6 (2) 37 (2) ( 1,204 ) (3) 175 (3) ( 986 ) 1 (4)

Issues — 4 179 ( 15 ) 168 6

Settlements ( 1 ) ( 48 ) 82 ( 16 ) 17 ( 6 )

Balance at June 30, 2021

$ 54 $ 928 $ 1,373 $ 214 $ 2,569 $ 44

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

$ — $ 37 (2) $ ( 1,176 ) (3) $ — $ ( 1,139 ) $ —

(1) Included in Net investment income.

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(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) The fair value of the structured variable annuity embedded derivatives was a net asset as of June 30, 2022 and the amount is presented as a contra liability.

The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $ 194 million and $ 27 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the three months ended June 30, 2022 and 2021, respectively.

The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $ 219 million and $( 139 ) million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the six months ended June 30, 2022 and 2021, respectively.

Securities transferred from Level 3 primarily represent securities with fair values that are now 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.

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:

March 31, 2022

June 30, 2022

Fair Value Valuation Technique Unobservable Input Range Weighted Average

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0.0 % – 0.0 % 0.0 %

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

December 31, 2021

20 unchanged sentences

Surrender rate (4)

0.1 % – 55.7 % 3.6 %

Market volatility (7) (8)

8 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.

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(9) The weighted average discount rate represents the average discount rate across all contingent consideration liabilities, weighted based on the size of the contingent consideration liability.

(10) The fair value of the structured variable annuity embedded derivatives was a net asset as of June 30, 2022 and the amount is presented as a contra liability.

Level 3 measurements not included in the table above are obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company.

5 unchanged sentences

Significant increases (decreases) in the surrender rate used in the fair value measurement of the fixed deferred indexed annuity ceded embedded derivatives in isolation would have resulted in a significantly lower (higher) fair value measurement.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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.

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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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

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The Company performs annual due diligence of third-party pricing services.

The Company’s due diligence procedures include assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

observable assumptions and unobservable assumptions, if any, employed in the valuation methodology.

The Company also considers the results of its exception reporting controls and any resulting price challenges that arise.

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Treasuries that are classified as Level 1.

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 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 to determine the fair value of these ceded embedded derivatives.

5 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 March 31, 2022 and December 31, 2021.

The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of June 30, 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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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 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.

13 unchanged sentences

Customer Deposits

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 Company uses Black-Scholes 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.

As a result, these measurements are classified as Level 2.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Other Liabilities

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

The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of June 30, 2022 and December 31, 2021.

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

13 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 $ 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)

The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $ 73 million and $ 93 million as of June 30, 2022 and December 31, 2021, respectively, and is classified as Level 3 in the fair value hierarchy.

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:

March 31, 2022

June 30, 2022

Carrying Value Fair Value

14 unchanged sentences

Debt and other liabilities 3,315 308 2,962 8 3,278

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

December 31, 2021

25 unchanged sentences

See Note 10 for further information on the Company’s long-term debt and short-term borrowings.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Offsetting Assets and Liabilities

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The Company’s policy is to recognize amounts subject to master netting arrangements on a gross basis in the Consolidated Balance Sheets.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

March 31, 2022

June 30, 2022

Gross Amounts of Recognized Assets

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(1) Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

March 31, 2022

June 30, 2022

Gross Amounts of Recognized Liabilities

14 unchanged sentences

Total $ 3,515 $ — $ 3,515 $ ( 2,676 ) $ ( 136 ) $ ( 675 ) $ 28

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

December 31, 2021

25 unchanged sentences

See Note 13 for additional disclosures related to the Company’s derivative instruments and Note 4 for information related to derivatives held by consolidated investment entities.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Derivatives and Hedging Activities

5 unchanged sentences

See Note 12 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Generally, the Company uses derivatives as economic hedges and accounting hedges.

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

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Notional Gross Fair Value Notional Gross Fair Value

21 unchanged sentences

Fixed deferred indexed annuities and deposit receivables N/A 49 48 N/A 59 61

Structured variable annuities N/A — 280 N/A — 406

Structured variable annuities (5)

N/A — ( 362 ) N/A — 406

SMC N/A — 1 N/A — 4

8 unchanged sentences

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.

(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 $ 1.8 billion and $ 3.2 billion as of June 30, 2022 and December 31, 2021, respectively.

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

(4) The fair value of the GMWB and GMAB embedded derivatives as of June 30, 2022 included $ 1.2 billion of individual contracts in a liability position and $ 185 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.

(5) The fair value of the structured variable annuity embedded derivatives was a net asset as of June 30, 2022 and the amount is presented as a contra liability.

See Note 11 for additional information regarding the Company’s fair value measurement of derivative instruments.

As of June 30, 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 June 30, 2022 and December 31, 2021, the Company had sold, pledged or rehypothecated none of these securities.

In addition, as of both June 30, 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.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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 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

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:

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

(in millions)

Three Months Ended March 31, 2022

Three Months Ended June 30, 2022

Interest rate contracts $ 1 $ — $ ( 3 ) $ — $ ( 944 ) $ ( 1 ) $ —

7 unchanged sentences

Total gain (loss) $ 2 $ — $ ( 127 ) $ 43 $ 197 $ ( 1 ) $ ( 22 )

Three Months Ended June 30, 2021

Interest rate contracts $ ( 23 ) $ — $ — $ — $ 871 $ — $ —

Equity contracts ( 1 ) — 47 30 ( 304 ) — 6

Credit contracts — — 1 — ( 30 ) — —

Foreign exchange contracts 6 — — — ( 5 ) — 2

GMWB and GMAB embedded derivatives — — — — ( 657 ) — —

IUL embedded derivatives — — — 20 — — —

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

Structured variable annuity embedded derivatives — — — — ( 100 ) — —

Total gain (loss) $ ( 18 ) $ — $ 48 $ 47 $ ( 225 ) $ — $ 8

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

(in millions)

Three Months Ended March 31, 2021

Six Months Ended June 30, 2022

Interest rate contracts $ 1 $ — $ ( 3 ) $ — $ ( 2,062 ) $ ( 1 ) $ —

4 unchanged sentences

IUL embedded derivatives — — — 194 — — —

Fixed deferred indexed annuity and deposit receivables embedded derivatives — — — 3 — — —

Structured variable annuity embedded derivatives — — — — 766 — —

Total gain (loss) $ 9 $ — $ ( 189 ) $ 85 $ 212 $ ( 1 ) $ ( 29 )

Six Months Ended June 30, 2021

Interest rate contracts $ ( 23 ) $ — $ ( 1 ) $ — $ ( 954 ) $ — $ —

Equity contracts — 1 80 55 ( 614 ) — 12

Credit contracts — — 1 — 39 — —

Foreign exchange contracts 6 — — — 6 — ( 2 )

GMWB and GMAB embedded derivatives — — — — 943 — —

IUL embedded derivatives — — — 11 — — —

Fixed deferred indexed annuity embedded derivatives — — — ( 8 ) — — —

10 unchanged sentences

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 March 31, 2022:

The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of June 30, 2022:

Premiums Payable Premiums Receivable

2 unchanged sentences

Total $ 698 $ 284

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

(1) 2022 amounts represent the amounts payable and receivable for the period from July 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.

13 unchanged sentences

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.

For derivative instruments that qualify as cash flow hedges, the gains or losses on the derivative instruments are 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 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.

For the three and six months ended June 30, 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 June 30, 2022 that the Company expects to reclassify to earnings as a reduction to Interest and debt expense within the next twelve months is $ 1 million.

Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is 13 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.

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

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

For the three months ended June 30, 2022 and 2021, the Company recognized a gain of $ 10 million and a loss of $ 0.4 million, respectively, in OCI.

For the six months ended June 30, 2022 and 2021, the Company recognized a gain of $ 14 million and a loss of $ 0.9 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 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.

As of June 30, 2022 and December 31, 2021, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $ 468 million and $ 383 million, respectively.

The aggregate fair value of assets posted as collateral for such instruments as of June 30, 2022 and December 31, 2021 was $ 458 million and $ 383 million, respectively.

If the credit contingent provisions of derivative contracts in a net liability position as of June 30, 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 $ 10 million and nil , respectively.

Shareholders’ Equity

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

Three Months Ended March 31,

Three Months Ended June 30,

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

9 unchanged sentences

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

( 2 ) — ( 2 ) — — —

Net unrealized gains (losses) on derivatives ( 2 ) — ( 2 ) — — —

Foreign currency translation ( 155 ) 33 ( 122 ) 2 — 2

Total other comprehensive income (loss) $ ( 1,172 ) $ 272 $ ( 900 ) $ 174 $ ( 31 ) $ 143

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Six Months Ended June 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)

$ ( 3,032 ) $ 675 $ ( 2,357 ) $ ( 354 ) $ 87 $ ( 267 )

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

( 5 ) 1 ( 4 ) ( 51 ) 11 ( 40 )

Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables 926 ( 194 ) 732 137 ( 29 ) 108

Net unrealized gains (losses) on securities ( 2,111 ) 482 ( 1,629 ) ( 268 ) 69 ( 199 )

Net unrealized gains (losses) on derivatives:

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

( 1 ) — ( 1 ) — — —

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

Defined benefit plans:

5 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:

2 unchanged sentences

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.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

4 unchanged sentences

(in millions)

Balance, January 1, 2022

Balance at April 1, 2022

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

2 unchanged sentences

Total OCI ( 776 ) ( 2 ) — ( 122 ) — ( 900 )

Balance, March 31, 2022

Balance at June 30, 2022

$ ( 1,311 ) $ 3 $ ( 151 ) $ ( 335 ) $ ( 1 ) $ ( 1,795 )

Net Unrealized Gains (Losses)

on Securities Net Unrealized Gains (Losses)

on Derivatives Defined

Benefit Plans Foreign Currency Translation Other Total

(in millions)

Balance, January 1, 2021

Balance at April 1, 2021

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

2 unchanged sentences

Total OCI 141 — — 2 — 143

Balance, March 31, 2021

Balance at June 30, 2021

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

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.

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.

Balance at January 1, 2022

$ 318 $ 4 $ ( 151 ) $ ( 167 ) $ ( 1 ) $ 3

OCI before reclassifications ( 1,625 ) ( 1 ) — ( 168 ) — ( 1,794 )

Amounts reclassified from AOCI ( 4 ) — — — — ( 4 )

Total OCI ( 1,629 ) ( 1 ) — ( 168 ) — ( 1,798 )

Balance at June 30, 2022

$ ( 1,311 ) $ 3 $ ( 151 ) $ ( 335 ) $ ( 1 ) $ ( 1,795 )

Balance at January 1, 2021

$ 983 $ 5 $ ( 204 ) $ ( 154 ) $ ( 1 ) $ 629

OCI before reclassifications ( 159 ) — 29 1 — ( 129 )

Amounts reclassified from AOCI ( 40 ) — — — — ( 40 )

Total OCI ( 199 ) — 29 1 — ( 169 )

Balance at June 30, 2021

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

For the six months ended June 30, 2022 and 2021, the Company repurchased a total of 3.2 million shares and 3.4 million shares, respectively, of its common stock for an aggregate cost of $ 887 million and $ 813 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, which was exhausted in the second quarter of 2022.

In January 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 June 30, 2022, the Company had $ 2.5 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 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.

For the six months ended June 30, 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 $ 91 million and $ 58 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 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.

For the six months ended June 30, 2022 and 2021, the Company reacquired 0.2 million shares and 0.8 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $ 75 million and $ 167 million, respectively.

During the six months ended June 30, 2022 and 2021, the Company reissued 0.7 million and 0.4 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 20.8 % and 18.1 % for the three months ended June 30, 2022 and 2021, respectively.

The Company’s effective tax rate was 19.2 % and 15.4 % for the six months ended June 30, 2022 and 2021, respectively.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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.

The effective tax rate for the three months ended June 30, 2022 was 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 six months ended June 30, 2022 was 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.

The effective tax rate for the three months ended June 30, 2021 was lower than the statutory tax 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 effective tax rate for the six months ended June 30, 2021 was lower than the statutory rate as a result of tax preferred items including incentive compensation, foreign tax credits, low income housing 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 June 30, 2022 compared to the three months ended June 30, 2021 was primarily the result of higher pretax income and a decrease in low income housing tax credits compared to the prior period.

The higher effective tax rate for the six months ended June 30, 2022 compared to the six months ended June 30, 2021 was primarily the result of higher pretax income, a decrease in low income housing tax credits, and an increase in state income taxes net of federal benefit 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 $ 37 million.

3 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 $ 11 million, state deferred tax assets of $ 3 million and foreign net operating losses of $ 18 million;

Based on analysis of the Company’s tax position as of June 30, 2022, 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 $ 16 million;

therefore, a valuation allowance has been established.

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.

The valuation allowance was $ 30 million and $ 32 million as of June 30, 2022 and December 31, 2021, respectively.

As of June 30, 2022 and December 31, 2021, the Company had $ 136 million and $ 125 million, respectively, of gross unrecognized tax benefits.

If recognized, approximately $ 103 million and $ 95 million, net of federal tax benefits, of unrecognized tax benefits as of June 30, 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.

The Company estimates that the total amount of gross unrecognized tax benefits may decrease by $ 35 million to $ 45 million in the next 12 months primarily due to Internal Revenue Service (“IRS”) settlements and state exams.

The Company estimates that the total amount of gross unrecognized tax benefits may decrease by $ 40 million in the next 12 months primarily due to Internal Revenue Service (“IRS”) settlements and state exams.

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

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 recognized a net increase of $ 1 million and $ 2 million in interest and penalties for the three and six months ended June 30, 2022, respectively.

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

As of June 30, 2022 and December 31, 2021, the Company had a payable of $ 12 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.

4 unchanged sentences

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Contingencies

13 unchanged sentences

security of client information;

trading activity and the Company’s monitoring

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

and supervision of such activity;

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

and transaction monitoring systems and controls.

3 unchanged sentences

Matters frequently need to be more developed before a loss or range of loss can be reasonably estimated for any proceeding.

An adverse outcome in one or more proceedings could eventually result in adverse judgments, settlements, fines, penalties or other sanctions, in addition to further claims, examinations or adverse publicity that could have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.

An adverse outcome in one or more proceedings could eventually result in adverse judgments, settlements, fines, penalties or other sanctions, in addition to further claims, examinations or adverse publicity that could have a material adverse effect on the Company’s consolidated results of operations, financial condition or liquidity.

In accordance with applicable accounting standards, the Company establishes an accrued liability for contingent litigation and regulatory matters when those matters present loss contingencies that are both probable and can be reasonably estimated.

10 unchanged sentences

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

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.

As of both June 30, 2022 and December 31, 2021, the estimated liability was $ 12 million.

As of both June 30, 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.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Earnings per Share

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

Three Months Ended March 31,

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

Three Months Ended June 30,

Six Months Ended June 30,

(in millions, except per share amounts)

6 unchanged sentences

Diluted $ 6.61 $ 4.88 $ 13.16 $ 8.45

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The calculation of diluted earnings per share excludes the incremental effect of nil and nil options for the three months ended June 30, 2022 and 2021 respectively, and 0.2 million and nil options for the six months ended June 30, 2022 and 2021, respectively, due to their anti-dilutive effect.

Segment Information

10 unchanged sentences

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

Adjusted operating net revenues and adjusted operating expenses exclude net realized investment gains or losses (net of unearned revenue amortization and the reinsurance accrual);

Adjusted operating net revenues and adjusted operating expenses exclude net realized investment gains or losses (net of the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual);

the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the related DSIC and DAC amortization, unearned revenue amortization, and the reinsurance accrual;

mean reversion related impacts (the impact on variable annuity and VUL products for the difference between assumed and updated separate account investment performance on DAC, DSIC, unearned revenue amortization, reinsurance accrual and additional insurance benefit reserves);

block transfer reinsurance transaction impacts;

the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments;

block transfer reinsurance transaction impacts;

integration and restructuring charges;

and the impact of consolidating CIEs.

The market impact on non-traditional long-duration products includes changes in embedded derivative values caused by changes in financial market conditions, net of changes in economic hedge values and unhedged items including the difference between assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and certain policyholder contract elections, net of related impacts on DAC and DSIC amortization.

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.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

investment performance, fixed income credit exposures, transaction costs and certain policyholder contract elections, net of related impacts on DAC and DSIC amortization.

The market impact also includes certain valuation adjustments made in accordance with FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosure s, 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 reconcile segment totals to those reported on the consolidated financial statements:

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

(in millions)

5 unchanged sentences

Total assets $ 158,497 $ 175,979

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in millions)

3 unchanged sentences

Asset Management

881 879 1,898 1,707

Retirement & Protection Solutions 760 808 1,532 1,595

Corporate & Other

119 119 235 258

Elimination of segment revenues (1)(2)

1 unchanged sentence

Total segment adjusted operating net revenues

3,479 3,387 7,074 6,641

Net realized gains (losses) ( 15 ) 10 2 67

1 unchanged sentence

Market impact on non-traditional long-duration products, net 25 21 51 26

Mean reversion related impacts ( 1 ) 1 ( 1 ) 1

Market impact of hedges on investments — ( 17 ) — ( 17 )

Total net revenues per consolidated statements of operations $ 3,508 $ 3,418 $ 7,163 $ 6,768

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

1) Represents the elimination of intersegment revenues recognized for the three months ended June 30, 2022 and 2021 in each segment as follows:

Advice & Wealth Management ($ 221 million and $ 266 million, respectively);

1 unchanged sentence

Retirement & Protection Solutions ($ 105 million and $ 118 million, respectively);

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

Three Months Ended March 31,

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

(2) Represents the elimination of intersegment revenues recognized for the six months ended June 30, 2022 and 2021 in each segment as follows:

Advice & Wealth Management ($ 449 million and $ 516 million, respectively);

Asset Management ($ 23 million and $ 27 million, respectively);

Retirement & Protection Solutions ($ 217 million and $ 234 million, respectively);

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Three Months Ended June 30,

Six Months Ended June 30,

(in millions)

1 unchanged sentence

Advice & Wealth Management

$ 492 $ 423 $ 932 $ 812

Asset Management

222 253 507 481

Retirement & Protection Solutions 179 182 370 365

2 unchanged sentences

Total segment adjusted operating earnings

840 781 1,680 1,560

Net realized gains (losses)

( 14 ) 11 2 66

Net income (loss) attributable to consolidated investment entities

( 1 ) ( 2 ) 1 ( 3 )

Market impact on non-traditional long-duration products, net 305 ( 87 ) 439 ( 483 )

Mean reversion related impacts

( 161 ) 42 ( 220 ) 98

Market impact of hedges on investments — ( 17 ) — ( 17 )

Integration and restructuring charges

( 14 ) ( 7 ) ( 24 ) ( 7 )

Pretax income per consolidated statements of operations $ 955 $ 721 $ 1,878 $ 1,214

1 unchanged sentence

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