What changed in this filing

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Item 1. Financial Statements

2022-11-02 compared with 2022-08-01 · 327 added, 295 removed, 1900 unchanged (25% of the section changed)

1 unchanged sentence

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in millions, except per share amounts)

22 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in millions)

1 unchanged sentence

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustment

( 122 ) 2 ( 168 ) 1

Net unrealized gains (losses) on securities ( 873 ) ( 339 ) ( 2,502 ) ( 538 )

Net unrealized gains (losses) on derivatives

( 2 ) — ( 1 ) —

Defined benefit plans

Foreign currency translation adjustment

( 127 ) ( 22 ) ( 295 ) ( 21 )

Total other comprehensive income (loss), net of tax

4 unchanged sentences

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

(in millions, except share amounts)

11 unchanged sentences

Restricted and segregated cash, cash equivalents and investments

11,238 11,444

Other assets of consolidated investment entities, at fair value 2 3

35 unchanged sentences

(in millions, except per share data)

Balances at April 1, 2022

Balances at July 1, 2022

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

4 unchanged sentences

Share-based compensation plans 186,202 — 54 — — — 54

Balances at June 30, 2022

Balances at September 30, 2022

106,693,611 $ 3 $ 9,434 $ 19,174 $ ( 22,560 ) $ ( 2,794 ) $ 3,257

Balances at April 1, 2021

Balances at July 1, 2021

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

Net income — — — 1,031 — — 1,031

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

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

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

1 unchanged sentence

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

Balances at June 30, 2021

Balances at September 30, 2021

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

6 unchanged sentences

Share-based compensation plans 1,488,421 — 214 — 71 — 285

Balances at June 30, 2022

Balances at September 30, 2022

106,693,611 $ 3 $ 9,434 $ 19,174 $ ( 22,560 ) $ ( 2,794 ) $ 3,257

6 unchanged sentences

Share-based compensation plans 2,356,275 — 296 — 35 — 331

Balances at June 30, 2021

Balances at September 30, 2021

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

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions)

5 unchanged sentences

Share-based compensation

Net realized investment gains ( 9 ) ( 79 )

Net realized investment (gains) losses ( 5 ) ( 627 )

Net trading (gains) losses

9 unchanged sentences

( 132 ) ( 360 )

( 211 ) ( 236 )

Brokerage deposits

( 168 ) ( 45 )

Accounts payable and accrued expenses

29 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions)

25 unchanged sentences

( 1 ) ( 757 )

Net cash provided by (used in) financing activities

( 19 ) ( 11 )

Net cash provided by (used in) financing activities

Effect of exchange rate changes on cash

( 116 ) ( 9 )

Net increase (decrease) in cash and cash equivalents, including amounts restricted 46 651

8 unchanged sentences

Non-cash investing activity:

Investments transferred in connection with reinsurance transaction — 7,527

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

June 30, 2022 December 31, 2021

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

In the second quarter of 2022, the Company recorded an out-of-period correction of $ 256 million, net of tax, 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 OCI related to defined benefit plans.

The impact of these out-of-period adjustments, individually and in the aggregate, was not material to any previously reported quarterly or annual financial statements and is not expected to be material to the 2022 annual financial statements.

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

34 unchanged sentences

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 has updated its estimated adoption impact as of January 1, 2021 to be a reduction in total equity of $ 1.8 billion to $ 2.1 billion, of which a significant portion will be reflected in AOCI.

However, as of September 30, 2022, the impact on total equity is estimated to be an increase of $ 400 million to $ 600 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 its 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.

3 unchanged sentences

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

Three Months Ended June 30, 2022

Three Months Ended September 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 June 30, 2021

Three Months Ended September 30, 2021

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

23 unchanged sentences

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

Six Months Ended June 30, 2022

Nine Months Ended September 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)

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

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

61 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 $ 151 million and $ 157 million as of June 30, 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 September 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 $ 121 million and $ 126 million as of June 30, 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 September 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 $ 26 million and nil as of June 30, 2022 and December 31, 2021, respectively.

Contract liabilities for custodial service fees, which are included in Other liabilities, were $ 13 million and nil as of September 30, 2022 and December 31, 2021, respectively.

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

45 unchanged sentences

Contract Costs Asset

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.

The Company has an asset of $ 35 million and $ 39 million as of September 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 $ 561 million and $ 668 million as of June 30, 2022 and December 31, 2021, respectively.

Receivables related to revenues from contracts with customers were $ 525 million and $ 668 million as of September 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 June 30, 2022 and December 31, 2021, respectively.

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

11 unchanged sentences

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 June 30, 2022 and December 31, 2021.

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 September 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 $ 42 million and $ 44 million as of June 30, 2022 and December 31, 2021, respectively.

The carrying value of the Company’s investment in property funds is reflected in other investments and was $ 55 million and $ 44 million as of September 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 June 30, 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 September 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 June 30, 2022 and December 31, 2021, respectively.

The carrying value of the Company’s investment in these funds is reflected in other investments and was $ 29 million and $ 43 million as of September 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 $ 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 carrying value is reflected in other investments and was $ 105 million and $ 138 million as of September 30, 2022 and December 31, 2021, respectively.

The Company has a l iability of $ 7 million and $ 8 million as of September 30, 2022 and December 31, 2021 respectively, related to original purchase commitments not yet remitted to the VIEs.

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

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:

June 30, 2022

September 30, 2022

Level 1 Level 2 Level 3 Total

(in millions)

Corporate debt securities $ — $ 28 $ — $ 28

Common stocks — 3 — 3

20 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 June 30, 2022 and December 31, 2021, respectively.

The estimated fair value of the CLOs’ debt was $ 2.4 billion and $ 2.2 billion as of September 30, 2022 and December 31, 2021, respectively.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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:

1 unchanged sentence

(in millions)

Balance at April 1, 2022

Balance at July 1, 2022

Total gains (losses) included in:

1 unchanged sentence

Purchases — 42

Sales — ( 3 )

Settlements — ( 1 )

1 unchanged sentence

Transfers out of Level 3 ( 2 ) ( 25 )

Balance at June 30, 2022

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

Balance at September 30, 2022

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

$ — $ ( 5 ) (1)

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Syndicated Loans

(in millions)

Balance at April 1, 2021

Balance at July 1, 2021

Settlements ( 10 )

1 unchanged sentence

Transfers out of Level 3 ( 47 )

Balance at June 30, 2021

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

Deconsolidation of consolidated investment entities ( 18 )

Balance at September 30, 2021

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

Common Stocks Syndicated Loans Other Assets

2 unchanged sentences

Total gains (losses) included in:

— ( 3 ) (1) —

Net income — ( 7 ) (1) —

Transfers into Level 3

1 unchanged sentence

( 2 ) ( 117 ) ( 3 )

Balance at June 30, 2022

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

Balance at September 30, 2022

$ — $ 165 $ —

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

$ — $ ( 5 ) (1) $ —

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Syndicated Loans Other Assets

2 unchanged sentences

Total gains (losses) included in:

Net income 2 (1) —

Transfers into Level 3

Transfers out of Level 3

Balance at June 30, 2021

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

( 122 ) ( 2 )

Deconsolidation of consolidated investment entities ( 18 ) —

Balance at September 30, 2021

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

(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 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)

All Level 3 measurements as of September 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.

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:

June 30, 2022

September 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 June 30, 2022 and December 31, 2021, respectively.

The estimated fair value of the CLOs’ debt was $ 2.4 billion and $ 2.2 billion as of September 30, 2022 and December 31, 2021, respectively.

During the third quarter of 2022, the Company launched one new CLO and issued debt of $ 352 million.

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

1 unchanged sentence

Interest expense on debt is recorded in Interest and debt expense with gains and losses related to the changes in 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 and six months ended June 30, 2022 and 2021.

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

June 30, 2022

September 30, 2022

December 31, 2021

June 30, 2022

September 30, 2022

December 31, 2021

5 unchanged sentences

The following is a summary of Ameriprise Financial investments:

June 30, 2022 December 31, 2021

September 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 June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in millions)

6 unchanged sentences

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

June 30, 2022

September 30, 2022

Description of Securities

10 unchanged sentences

Total $ 39,284 $ 199 $ ( 3,075 ) $ ( 22 ) $ 36,386

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 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.

As of September 30, 2022 and December 31, 2021, accrued interest of $ 207 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 September 30, 2022 and December 31, 2021, investment securities with a fair value of $ 3.6 billion and $ 3.1 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $ 373 million and $ 314 million, respectively, may be sold, pledged or rehypothecated by the counterparty.

As of September 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 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.

As of September 30, 2022 and December 31, 2021,

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

the Company’s internal analysts rated $ 318 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:

June 30, 2022 December 31, 2021

September 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 $ 39,284 $ 36,386 100 % $ 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 June 30, 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 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)

As of September 30, 2022 and December 31, 2021, approximately 29 % and 30 % of securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities, respectively.

No holdings of any issuer were greater than 10% of the Company’s total shareholder’s equity as of both September 30, 2022 and December 31, 2021.

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

Description of Securities June 30, 2022

Description of Securities September 30, 2022

Less than 12 Months 12 Months or More Total

10 unchanged sentences

Total 1,687 $ 28,479 $ ( 2,256 ) 303 $ 4,356 $ ( 819 ) 1,990 $ 32,835 $ ( 3,075 )

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 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.

As part of the Company’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities for which an allowance for credit losses has not been recognized during the nine months ended September 30, 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 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.

As of September 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:

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

Corporate Debt Securities Asset Backed Securities State and Municipal Obligations Total

(in millions)

Balance at April 1, 2022

Balance at July 1, 2022

$ — $ — $ 1 $ 1

Charge-offs — — — —

Balance at June 30, 2022

Additions for which credit losses were not previously recorded 20 — — 20

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

Balance at September 30, 2022

$ 20 $ — $ 2 $ 22

Balance at April 1, 2021

Balance at July 1, 2021

$ — $ — $ — $ —

Charge-offs — — — —

Balance at June 30, 2021

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

Balance at September 30, 2021

$ — $ — $ 1 $ 1

1 unchanged sentence

$ — $ — $ 1 $ 1

Charge-offs — — — —

Balance at June 30, 2022

Additions for which credit losses were not previously recorded 20 — — 20

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

Balance at September 30, 2022

$ 20 $ — $ 2 $ 22

1 unchanged sentence

$ 10 $ 1 $ — $ 11

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

Charge-offs ( 10 ) ( 1 ) — ( 11 )

Balance at June 30, 2021

Balance at September 30, 2021

$ — $ — $ 1 $ 1

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 June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in millions)

1 unchanged sentence

Gross realized investment losses ( 6 ) ( 5 ) ( 17 ) ( 6 )

Credit losses ( 21 ) ( 1 ) ( 21 ) ( 1 )

Other impairments ( 61 ) — ( 67 ) ( 13 )

Total $ ( 86 ) $ 502 $ ( 81 ) $ 553

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.

Credit losses for the three and nine months ended September 30, 2022 primarily related to recording an allowance for credit losses on a corporate debt security in the communications industry.

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

Other impairments for the three and nine months ended September 30, 2022 and the nine months ended September 30, 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:

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Available-for-Sale securities by contractual maturity as of September 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

8 unchanged sentences

Charge-offs — ( 1 ) ( 1 )

Balance at June 30, 2022

Balance at September 30, 2022

$ 53 $ 4 $ 57

5 unchanged sentences

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

Balance at June 30, 2021

Recoveries — 1 1

Balance at September 30, 2021

$ 48 $ 3 $ 51

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.

Accrued interest on commercial loans was $ 15 million and $ 13 million as of September 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 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.

There were no commercial mortgage loans sold for the three and nine months ended September 30, 2022.

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

During the three months ended September 30, 2022 and 2021, the Company purchased nil syndicated loans, and sold nil and $ 360 million, respectively, of syndicated loans.

During the nine months ended September 30, 2022 and 2021, the Company purchased $ 57 million and $ 37 million, respectively, of syndicated loans, and sold $ 1 million and $ 368 million, respectively, of syndicated loans.

During the three months ended September 30, 2022 and 2021, the Company purchased $ 11 million and $ 1 million, respectively, of residential mortgage loans, and sold nil and $ 3 million, respectively, of residential mortgage loans.

During the nine months ended September 30, 2022 and 2021, the Company purchased $ 34 million and $ 7 million, respectively, of residential mortgage loans, and sold nil and $ 3 million, respectively, of residential mortgage loans.

The allowance for credit losses for residential mortgage loans was not material as of both September 30, 2022 and 2021.

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Credit Quality Information

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

Nonperforming loans were $ 14 million and $ 9 million as of September 30, 2022 and December 31, 2021, respectively.

All other loans were considered to be performing.

4 unchanged sentences

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 June 30, 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 September 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 $ 3 million and nil as of June 30, 2022 and December 31, 2021, respectively.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

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

June 30, 2022

September 30, 2022

Loan-to-Value Ratio 2022

17 unchanged sentences

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

2 unchanged sentences

Loans Percentage

June 30, 2022

September 30, 2022

December 31, 2021

June 30, 2022

September 30, 2022

December 31, 2021

12 unchanged sentences

Total $ 1,908 $ 1,904

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

Loans Percentage

June 30, 2022

September 30, 2022

December 31, 2021

June 30, 2022

September 30, 2022

December 31, 2021

11 unchanged sentences

Syndicated Loans

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

The recorded investment in syndicated loans as of September 30, 2022 and December 31, 2021 was $ 177 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 June 30, 2022 and December 31, 2021.

Total syndicated loans past due were nil as of both September 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:

June 30, 2022

September 30, 2022

Internal Risk Rating 2022 2021 2020 2019 2018 Prior Total

6 unchanged sentences

Total $ 10 $ 37 $ 11 $ 26 $ 21 $ 72 $ 177

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

December 31, 2021

12 unchanged sentences

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

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The allowance for credit losses related to loans to advisors that have terminated their relationship with the Company was $ 6 million and $ 5 million as of September 30, 2022 and December 31, 2021, respectively.

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

June 30, 2022

September 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 June 30, 2022 and December 31, 2021.

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

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

June 30, 2022

September 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 $ 1.3 billion and $ 1.2 billion as of June 30, 2022 and December 31, 2021, respectively.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The margin loans balance was $ 1.3 billion and $ 1.2 billion as of September 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 June 30, 2022 and December 31, 2021, the allowance for credit losses on margin loans was not material.

As of both September 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 $ 601 million and $ 467 million as of June 30, 2022 and December 31, 2021, respectively.

The pledged asset lines of credit balance was $ 612 million and $ 467 million as of September 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 June 30, 2022 and December 31, 2021, there w as no allowance for credit losses on pledged asset lines of credit.

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

Deposit receivables were $ 7.5 billion and $ 7.9 billion as of September 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 June 30, 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 and six months ended June 30, 2022 and 2021.

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

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Deferred Acquisition Costs and Deferred Sales Inducement Costs

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

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

These aforementioned changes are collectively referred to as unlocking.

The impact of unlocking to deferred acquisition costs (“DAC”) in the third quarter of 2022 primarily reflected a $ 49 million increase from lower surrenders on variable annuities with living benefits and universal life (“UL”) and variable universal life (“VUL”) insurance products partially offset by a $ 27 million decrease from updating mortality assumptions for variable annuities and a $ 13 million decrease from updating the fair value discount rate for variable annuities.

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

The balances of and changes in DAC were as follows:

3 unchanged sentences

Amortization ( 363 ) ( 137 )

Amortization, impact of valuation assumptions review 8 60

Impact of change in net unrealized (gains) losses on securities 420 75

Balance at June 30

Balance at September 30

$ 2,998 $ 2,735

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

The balances of and changes in deferred sales inducement costs (“DSIC”), which is included in Other assets, were as follows:

(in millions)

2 unchanged sentences

Amortization ( 35 ) ( 15 )

Amortization, impact of valuation assumptions review 2 2

Impact of change in net unrealized (gains) losses on securities 15 11

Balance at June 30

Balance at September 30

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

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

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

(in millions)

3 unchanged sentences

Variable annuity fixed sub-accounts 4,887 4,990

Universal life (“UL”)/variable universal life (“VUL”) insurance 3,079 3,103

UL/VUL insurance 3,069 3,103

Indexed universal life (“IUL”) insurance 2,645 2,534

15 unchanged sentences

(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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Separate account liabilities consisted of the following:

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

(in millions)

4 unchanged sentences

Total $ 71,722 $ 97,491

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Variable Annuity and Insurance Guarantees

7 unchanged sentences

by Benefit Type (1)

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Total Contract Value Contract Value in Separate Accounts Net Amount

20 unchanged sentences

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

at Risk Weighted Average Attained Age Net Amount

4 unchanged sentences

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.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

4 unchanged sentences

Paid claims ( 15 ) — — — ( 31 )

Balance at June 30, 2022

Balance at September 30, 2022

$ 61 $ 7 $ 2,101 $ 64 $ 1,076

3 unchanged sentences

Paid claims ( 3 ) ( 1 ) — — ( 27 )

Balance at June 30, 2021

Balance at September 30, 2021

$ 33 $ 6 $ 2,256 $ ( 14 ) $ 995

2 unchanged sentences

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

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

(in millions)

4 unchanged sentences

Total mutual funds $ 65,830 $ 82,497

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

Outstanding Balance Stated Interest Rate

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

September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021

(in millions)

14 unchanged sentences

N/A Not Applicable

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Long-Term Debt

6 unchanged sentences

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 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 fair value of the securities pledged is recorded in Investments and was $ 1.4 billion and $ 1.2 billion of commercial mortgage backed securities as of September 30, 2022 and December 31, 2021, respectively, and $ 501 million and $ 581 million of residential mortgage backed securities as of September 30, 2022 and December 31, 2021, respectively.

The remaining maturity of outstanding FHLB advances was less than three months as of both September 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 June 30, 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 September 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 June 30, 2022 and December 31, 2021.

The Company was in compliance with all such covenants as of both September 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

9 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):

June 30, 2022

September 30, 2022

Level 1 Level 2 Level 3 Total

81 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 $ 1.2 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.

(2) The fair value of the GMWB and GMAB embedded derivatives included $ 1.2 billion of individual contracts in a liability position and $ 224 million of individual contracts in an asset position (recorded as a contra liability) as of September 30, 2022.

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

(4) The Company’s adjustment for nonperformance risk resulted in a $ 778 million cumulative decrease to the embedded derivatives as of September 30, 2022.

AMERIPRISE FINANCIAL, INC.

4 unchanged sentences

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

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

(in millions)

Balance at April 1, 2022

Balance at July 1, 2022

$ 458 $ 139 $ 21 $ 618 $ 49

5 unchanged sentences

Transfers out of Level 3 — ( 139 ) ( 14 ) ( 153 ) —

Balance at June 30, 2022

$ 458 $ 139 $ — $ 21 $ 618 $ 49

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

Balance at September 30, 2022

$ 403 $ 246 $ 24 $ 673 $ 47

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

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

$ ( 13 ) $ ( 4 ) $ — $ ( 17 ) $ —

2 unchanged sentences

(in millions)

Balance at April 1, 2022

Balance at July 1, 2022

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

4 unchanged sentences

Settlements ( 1 ) ( 26 ) ( 11 ) 3 ( 35 ) ( 8 )

Balance at June 30, 2022

Balance at September 30, 2022

$ 43 $ 689 $ 932 $ ( 513 ) (5) $ 1,151 $ 63

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

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

$ — $ ( 22 ) (2) $ ( 146 ) (3) $ ( 173 ) (3) $ ( 341 ) $ —

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Available-for-Sale Securities

Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total

Available-for-Sale Securities Receivables

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

(in millions)

Balance at April 1, 2021

Balance at July 1, 2021

$ 391 $ 6 $ 397 $ —

Total gains (losses) included in:

Net income ( 1 ) 1 — (1) —

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

Purchases 9 — 9 —

Sales — ( 1 ) ( 1 ) —

Issues — — — 57

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

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

Balance at June 30, 2021

Transfers into Level 3 168 2 170 —

Balance at September 30, 2021

$ 520 $ 7 $ 527 $ 56

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

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

$ ( 4 ) $ — $ ( 4 ) $ —

2 unchanged sentences

(in millions)

Balance at April 1, 2021

Balance at July 1, 2021

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

3 unchanged sentences

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

Balance at June 30, 2021

Balance at September 30, 2021

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

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

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

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Available-for-Sale Securities Receivables

9 unchanged sentences

Transfers out of Level 3 — ( 139 ) ( 147 ) ( 14 ) ( 300 ) —

Balance at June 30, 2022

Balance at September 30, 2022

$ 403 $ 246 $ — $ 24 $ 673 $ 47

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

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

$ ( 1 ) $ — $ — $ — $ ( 1 ) (1) $ —

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

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

$ ( 45 ) $ ( 4 ) $ — $ — $ ( 49 ) $ —

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities

8 unchanged sentences

Settlements ( 3 ) ( 80 ) ( 87 ) ( 17 ) ( 187 ) ( 19 )

Balance at June 30, 2022

Balance at September 30, 2022

$ 43 $ 689 $ 932 $ ( 513 ) (5) $ 1,151 $ 63

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

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

$ — $ ( 162 ) (2) $ ( 709 ) (3) $ ( 939 ) (3) $ ( 1,810 ) $ —

Available-for-Sale Securities

Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Available-for-Sale Securities Receivables

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

(in millions)

5 unchanged sentences

Purchases 76 78 — 154 —

Sales — — ( 1 ) ( 1 ) —

Issues — — — — 57

Settlements ( 73 ) — ( 2 ) ( 75 ) ( 1 )

Transfers into Level 3 168 — 2 170 —

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

Balance at June 30, 2021

Balance at September 30, 2021

$ 520 $ — $ 7 $ 527 $ 56

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

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

$ — $ — $ ( 1 ) $ ( 1 ) (1) $ —

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

$ ( 4 ) $ — $ — $ ( 4 ) $ —

Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities

7 unchanged sentences

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

Balance at June 30, 2021

Balance at September 30, 2021

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

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

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

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

3 unchanged sentences

(4) Included in General and administrative expense.

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.

(5) The fair value of the structured variable annuity embedded derivatives was a net asset as of both June 30, 2022 and September 30, 2022 and the amounts are presented as contra liabilities.

The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $( 37 ) million and $ 1 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the three months ended September 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 $ 182 million and $( 138 ) million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the nine months ended September 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.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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:

June 30, 2022

September 30, 2022

Fair Value Valuation Technique Unobservable Input Range Weighted Average

69 unchanged sentences

(3) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives.

During the third quarter of 2022, the Company changed to using a U.S.

Treasury curve as its observable discount rate curve reflecting the evolution of LIBOR discontinuation as an observable reference rate used by market participants.

(4) The weighted average surrender rate is weighted based on the benefit base of each contract and represents the average assumption in the current year including the effect of a dynamic surrender formula.

5 unchanged sentences

(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.

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

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

Uncertainty of Fair Value Measurements

3 unchanged sentences

Significant increases (decreases) in the constant prepayment rate in isolation would have resulted in a significantly lower (higher) fair value measurement.

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.

34 unchanged sentences

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

The Company’s due diligence procedures include assessing the vendor’s valuation

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

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.

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

14 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 June 30, 2022 and December 31, 2021.

The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of both September 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.

28 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 June 30, 2022 and December 31, 2021.

The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of both September 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 $ 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.

The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $ 63 million and $ 93 million as of September 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:

June 30, 2022

September 30, 2022

Carrying Value Fair Value

54 unchanged sentences

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

June 30, 2022

September 30, 2022

Gross Amounts of Recognized Assets

31 unchanged sentences

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

June 30, 2022

September 30, 2022

Gross Amounts of Recognized Liabilities

54 unchanged sentences

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

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Notional Gross Fair Value Notional Gross Fair Value

33 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 $ 1.8 billion and $ 3.2 billion as of June 30, 2022 and December 31, 2021, respectively.

(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 $ 1.6 billion and $ 3.2 billion as of September 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.

(4) The fair value of the GMWB and GMAB embedded derivatives as of September 30, 2022 included $ 1.2 billion of individual contracts in a liability position and $ 224 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.

(5) The fair value of the structured variable annuity embedded derivatives was a net asset as of September 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.

As of September 30, 2022 and December 31, 2021, investment securities with a fair value of $ 7 million and $ 123 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $ 7 million and $ 123 million, respectively, may be sold, pledged or rehypothecated by the Company.

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

In addition, as of both September 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.

4 unchanged sentences

(in millions)

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

Interest rate contracts $ — $ — $ — $ — $ ( 753 ) $ — $ —

4 unchanged sentences

IUL embedded derivatives — — — 48 — — —

Fixed deferred indexed annuity and deposit receivables embedded derivatives — — — 2 — — —

Structured variable annuity embedded derivatives — — — — 173 — —

SMC embedded derivatives — 1 — — — — —

Total gain (loss) $ 4 $ — $ ( 40 ) $ 25 $ 36 $ — $ ( 13 )

Three Months Ended June 30, 2021

Three Months Ended September 30, 2021

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

11 unchanged sentences

(in millions)

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Interest rate contracts $ 1 $ — $ ( 3 ) $ — $ ( 2,815 ) $ ( 1 ) $ —

6 unchanged sentences

Structured variable annuity embedded derivatives — — — — 939 — —

SMC embedded derivatives — 1 — — — — —

Total gain (loss) $ 13 $ — $ ( 229 ) $ 110 $ 248 $ ( 1 ) $ ( 42 )

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

Interest rate contracts $ ( 23 ) $ — $ ( 1 ) $ — $ ( 1,125 ) $ — $ —

16 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 June 30, 2022:

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

Premiums Payable Premiums Receivable

2 unchanged sentences

Total $ 661 $ 236

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

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

15 unchanged sentences

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 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.

For the three and nine months ended September 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 September 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.

5 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 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.

For the three months ended September 30, 2022 and 2021, the Company recognized a gain of $ 8 million and a gain of $ 0.7 million, respectively, in OCI.

For the nine months ended September 30, 2022 and 2021, the Company recognized a gain of $ 22 million and a loss of $ 0.2 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 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.

As of September 30, 2022 and December 31, 2021, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $ 364 million and $ 383 million, respectively.

The aggregate fair value of assets posted as collateral for such instruments as of September 30, 2022 and December 31, 2021 was $ 342 million and $ 383 million, respectively.

If the credit contingent provisions of derivative contracts in a net liability position as of September 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 $ 22 million and nil , respectively.

Shareholders’ Equity

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

Three Months Ended June 30,

Three Months Ended September 30,

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

7 unchanged sentences

Net unrealized gains (losses) on securities ( 1,130 ) 257 ( 873 ) ( 434 ) 95 ( 339 )

Net unrealized gains (losses) on derivatives:

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

( 2 ) — ( 2 ) — — —

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

Defined benefit plans:

Net gain (loss) arising during the period 1 — 1 — — —

Defined benefit plans 1 — 1 — — —

Foreign currency translation ( 160 ) 33 ( 127 ) ( 28 ) 6 ( 22 )

2 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Six Months Ended June 30,

Nine Months Ended September 30,

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

30 unchanged sentences

(in millions)

Balance at April 1, 2022

Balance at July 1, 2022

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

2 unchanged sentences

Total OCI ( 873 ) — 1 ( 127 ) — ( 999 )

Balance at June 30, 2022

Balance at September 30, 2022

$ ( 2,184 ) $ 3 $ ( 150 ) $ ( 462 ) $ ( 1 ) $ ( 2,794 )

Balance at April 1, 2021

Balance at July 1, 2021

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

2 unchanged sentences

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

Balance at June 30, 2021

Balance at September 30, 2021

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

4 unchanged sentences

Total OCI ( 2,502 ) ( 1 ) 1 ( 295 ) — ( 2,797 )

Balance at June 30, 2022

Balance at September 30, 2022

$ ( 2,184 ) $ 3 $ ( 150 ) $ ( 462 ) $ ( 1 ) $ ( 2,794 )

4 unchanged sentences

Total OCI ( 538 ) — 29 ( 21 ) — ( 530 )

Balance at June 30, 2021

Balance at September 30, 2021

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

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.

For the nine months ended September 30, 2022 and 2021, the Company repurchased a total of 5.0 million shares and 5.5 million shares, respectively, of its common stock for an aggregate cost of $ 1.4 billion and $ 1.3 billion, 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.

As of September 30, 2022, the Company had $ 2.1 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 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.

For the nine months ended September 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 $ 99 million and $ 69 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 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.

For the nine months ended September 30, 2022 and 2021, the Company reacquired 0.3 million shares and 0.9 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $ 87 million and $ 209 million, respectively.

During the nine months ended September 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 20.0 % and 18.8 % for the three months ended September 30, 2022 and 2021, respectively.

The Company’s effective tax rate was 19.4 % and 17.1 % for the nine months ended September 30, 2022 and 2021, respectively.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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.

The effective tax rate for the three months ended September 30, 2022 was lower than the statutory tax rate as a result of tax preferred items including low income housing tax credits and the dividends received deduction, partially offset by state income taxes, net of federal benefit.

The effective tax rate for the nine months ended September 30, 2022 was lower than the statutory tax rate as a result of tax preferred items including incentive compensation 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 September 30, 2021 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 nine months ended September 30, 2021 was lower than the statutory tax rate as a result of tax preferred items including low income housing tax credits, incentive compensation and the dividends received deduction, partially offset by state income taxes, net of federal benefit.

The higher effective tax rate for the three months ended September 30, 2022 compared to the three months ended September 30, 2021 was primarily the result of an increase in state income taxes, net of federal benefit.

The higher effective tax rate for the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021 was primarily the result of decreases in low income housing tax credits and foreign taxes, and an increase in state income taxes, net of federal benefit.

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 $ 31 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 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;

Based on analysis of the Company’s tax position as of September 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 $ 14 million;

therefore, a valuation allowance has been established.

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.

The valuation allowance was $ 28 million and $ 32 million as of September 30, 2022 and December 31, 2021, respectively.

As of September 30, 2022 and December 31, 2021, the Company had $ 137 million and $ 125 million, respectively, of gross unrecognized tax benefits.

If recognized, approximately $ 105 million and $ 95 million, net of federal tax benefits, of unrecognized tax benefits as of September 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.

1 unchanged sentence

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

The Company recognized 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 recognized nil and a net increase of $ 2 million in interest and penalties for the three and nine months ended September 30, 2022, respectively.

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

As of September 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

4 unchanged sentences

Uncertain economic conditions, heightened and sustained volatility in the financial markets and significant financial reform legislation may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that regulators increase the scope or frequency of examinations of the Company or the financial services industry generally.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

As with other financial services firms, the level of regulatory activity and inquiry concerning the Company’s businesses remains elevated.

26 unchanged sentences

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

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.

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

As of both September 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.

3 unchanged sentences

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

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in millions, except per share amounts)

6 unchanged sentences

Diluted $ 4.86 $ 8.65 $ 18.05 $ 17.03

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.

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

Segment Information

7 unchanged sentences

The mean reversion related impact is defined as 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.

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

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

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

6 unchanged sentences

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 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.

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

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

(in millions)

5 unchanged sentences

Total assets $ 153,354 $ 175,979

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in millions)

16 unchanged sentences

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

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

Total net revenues per consolidated statements of operations $ 3,491 $ 2,903 $ 10,654 $ 9,671

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

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

Advice & Wealth Management ($ 202 million and $ 261 million, respectively);

1 unchanged sentence

Retirement & Protection Solutions ($ 101 million and $ 122 million, respectively);

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:

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

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

Advice & Wealth Management ($ 651 million and $ 777 million, respectively);

1 unchanged sentence

Retirement & Protection Solutions ($ 318 million and $ 356 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,

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

Three Months Ended September 30,

Nine Months Ended September 30,

(in millions)

17 unchanged sentences

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

Block transfer reinsurance transaction impacts — 521 — 521

Integration and restructuring charges

3 unchanged sentences

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