1 unchanged sentence
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
(in millions, except per share amounts)
28 unchanged sentences
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
(in millions)
3 unchanged sentences
Net unrealized gains (losses) on derivatives
−Removed: — ( 2 ) 2 ( 1 )
Effect of changes in discount rate assumptions on certain long-duration contracts 174 241 168 931
Effect of changes in instrument-specific credit risk on market risk benefits 18 ( 3 ) 53 657
+Added: Defined benefit plans
Foreign currency translation adjustment
8 unchanged sentences
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
−Removed: June 30, 2023 December 31, 2022 (1)
+Added: September 30, 2023 December 31, 2022 (1)
(in millions, except share amounts)
51 unchanged sentences
(in millions, except per share data)
−Removed: Balances at April 1, 2023
+Added: Balances at July 1, 2023
102,793,359 $ 3 $ 9,670 $ 20,941 $ ( 24,185 ) $ ( 2,349 ) $ 4,080
4 unchanged sentences
Share-based compensation plans 234,392 — 74 — 1 — 75
−Removed: Balances at June 30, 2023
+Added: Balances at September 30, 2023
101,381,266 $ 3 $ 9,744 $ 21,670 $ ( 24,752 ) $ ( 2,840 ) $ 3,825
−Removed: Balances at April 1, 2022
+Added: Balances at July 1, 2022
108,438,618 $ 3 $ 9,380 $ 18,486 $ ( 22,051 ) $ ( 1,748 ) $ 4,070
4 unchanged sentences
Share-based compensation plans 186,202 — 54 — — — 54
−Removed: Balances at June 30, 2022 (1)
+Added: Balances at September 30, 2022 (1)
106,693,611 $ 3 $ 9,434 $ 19,406 $ ( 22,560 ) $ ( 2,665 ) $ 3,618
7 unchanged sentences
Share-based compensation plans 1,380,212 — 227 — 64 — 291
−Removed: Balances at June 30, 2023
+Added: Balances at September 30, 2023
101,381,266 $ 3 $ 9,744 $ 21,670 $ ( 24,752 ) $ ( 2,840 ) $ 3,825
6 unchanged sentences
Share-based compensation plans 1,488,421 — 214 — 71 — 285
−Removed: Balances at June 30, 2022 (1)
+Added: Balances at September 30, 2022 (1)
106,693,611 $ 3 $ 9,434 $ 19,406 $ ( 22,560 ) $ ( 2,665 ) $ 3,618
4 unchanged sentences
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
(in millions)
3 unchanged sentences
Depreciation, amortization and accretion, net
+Added: ( 114 ) ( 11 )
Deferred income tax expense (benefit)
Share-based compensation
−Removed: Net realized investment gains 2 ( 9 )
+Added: Net realized investment (gains) losses
Net trading (gains) losses
4 unchanged sentences
Restricted and segregated investments
+Added: ( 107 ) ( 246 )
Deferred acquisition costs
1 unchanged sentence
Derivatives, net of collateral
−Removed: ( 507 ) ( 41 )
Brokerage deposits
−Removed: Accounts payable and accrued expenses
( 615 ) ( 168 )
+Added: Accounts payable and accrued expenses
Current income tax, net ( 338 ) ( 61 )
24 unchanged sentences
Cash received for deposit receivables 579 393
+Added: ( 41 ) ( 13 )
Net cash provided by (used in) investing activities $ ( 7,342 ) $ ( 9,241 )
2 unchanged sentences
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
(in millions)
22 unchanged sentences
( 1,660 ) ( 1,490 )
+Added: Borrowings of consolidated investment entities — 341
Repayments of debt by consolidated investment entities
+Added: ( 197 ) ( 1 )
Net cash provided by (used in) financing activities
9 unchanged sentences
Leased assets obtained in exchange for operating lease liabilities
−Removed: June 30, 2023 December 31, 2022
+Added: September 30, 2023 December 31, 2022
(in millions)
26 unchanged sentences
These Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission (“SEC”) on February 23, 2023 (“2022 10-K”).
−Removed: On July 13, 2023, the Company announced that it has withdrawn its application to convert Ameriprise Bank, FSB (“Ameriprise Bank”) to a state-chartered industrial bank and its application to establish a new limited purpose national trust bank.
+Added: On July 13, 2023, the Company announced that it withdrew its application to convert Ameriprise Bank, FSB (“Ameriprise Bank”) to a state-chartered industrial bank and its application to establish a new limited purpose national trust bank.
Ameriprise Bank will continue to operate as it does today, regulated by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation.
The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through the date the financial statements were issued.
−Removed: No subsequent events or transactions requiring recognition or disclosure were identified.
+Added: Other than disclosed in Note 12, no other subsequent events or transactions requiring recognition or disclosure were identified.
Summary of Significant Accounting Policies
14 unchanged sentences
Market risk benefits include certain contract features on variable annuity products that provide minimum guarantees to contractholders.
−Removed: Guarantees accounted for as market risk benefits include guaranteed minimum death benefits (“GMDB”), guaranteed minimum income benefits (“GMIB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum accumulation benefits (“GMAB”).
+Added: Guarantees accounted for as market risk benefits include guaranteed minimum death benefit (“GMDB”), guaranteed minimum income benefit (“GMIB”), guaranteed minimum withdrawal benefit (“GMWB”) and guaranteed minimum accumulation benefit (“GMAB”).
If a contract contains multiple market risk benefits, those market risk benefits are bundled together as a single compound market risk benefit.
141 unchanged sentences
In August 2018, the FASB updated the accounting standard related to long-duration insurance contracts (ASU 2018-12).
−Removed: The guidance changes elements of the measurement models and disclosure requirements for an insurer’s long-duration insurance contract benefits and acquisition costs by expanding the use of fair value accounting to certain contract benefits, requiring updates, if any, and at least annually, to assumptions used to measure liabilities for future policy benefits, and changing the amortization pattern of deferred acquisition costs to a constant level basis.
−Removed: Adoption of the accounting standard will not impact overall cash flows, insurance subsidiaries’ dividend capacity, or regulatory capital requirements.
−Removed: When the Company adopted the standard as of January 1, 2021 (the “transition date”), opening equity was adjusted for the adoption impacts to retained earnings and accumulated other comprehensive income (loss) (“AOCI”) and prior periods presented (i.e.
+Added: The guidance changes elements of the measurement models and disclosure requirements for an insurer’s long-duration insurance contract benefits and acquisition costs by expanding the use of fair value accounting to certain contract benefits, requiring updates, if any, and at least annually, to assumptions used to measure liabilities for future policy benefits, changing the amortization pattern of deferred acquisition costs to a constant-level basis and removing certain shadow adjustments previously recorded in accumulated other comprehensive income (loss) (“AOCI”).
+Added: Adoption of the accounting standard did not impact overall cash flows, insurance subsidiaries’ dividend capacity, or regulatory capital requirements.
+Added: When the Company adopted the standard effective January 1, 2023 with a transition date of January 1, 2021 (the “transition date”), opening equity was adjusted for the adoption impacts to retained earnings and AOCI and prior periods presented (i.e.
2021 and 2022) were restated.
The adoption impact as of January 1, 2021 was a reduction in total equity of $ 1.9 billion, of which $ 0.9 billion and $ 1.0 billion were reflected in retained earnings and AOCI, respectively.
+Added: AMERIPRISE FINANCIAL, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The following table presents the effects of the adoption of the above new accounting standard to the Company’s previously reported Consolidated Balance Sheets:
19 unchanged sentences
The following tables present the effects of the adoption of the above new accounting standard to the Company’s previously reported Consolidated Statements of Operations:
−Removed: Three Months Ended June 30,
+Added: Three Months Ended September 30,
As Filed 2022 Adjustment Post-adoption 2022 As Filed 2021 Adjustment Post-adoption 2021
17 unchanged sentences
Diluted $ 4.86 $ 4.55 $ 9.41 $ 8.65 $ ( 0.88 ) $ 7.77
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
As Filed 2022 Adjustment Post-adoption 2022 As Filed 2021 Adjustment Post-adoption 2021
39 unchanged sentences
Diluted $ 22.51 $ 5.19 $ 27.70 $ 23.00 $ 5.48 $ 28.48
+Added: The adoption of the standard did not affect the previously reported totals for net cash flows provided by (used in) operating, investing, or financing activities.
Leases – Common Control Arrangements
9 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:
−Removed: Three Months Ended June 30, 2023
+Added: Three Months Ended September 30, 2023
Advice & Wealth Management Asset Management Retirement & Protection Solutions Corporate & Other Total Segments Non-operating
26 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
−Removed: Three Months Ended June 30, 2022
+Added: Three Months Ended September 30, 2022
Advice & Wealth Management Asset Management Retirement & Protection Solutions Corporate & Other Total Segments Non-operating
27 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
−Removed: Six Months Ended June 30, 2023
+Added: Nine Months Ended September 30, 2023
Advice & Wealth Management Asset Management Retirement & Protection Solutions Corporate & Other Total Segments Non-operating
26 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
−Removed: Six Months Ended June 30, 2022
+Added: Nine Months Ended September 30, 2022
Advice & Wealth Management Asset Management Retirement & Protection Solutions Corporate & Other Total Segments Non-operating
65 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.
−Removed: Contract liabilities for financial planning fees, which are included in Other liabilities, were $ 155 million and $ 160 million as of June 30, 2023 and December 31, 2022, respectively.
+Added: Contract liabilities for financial planning fees, which are included in Other liabilities, were $ 156 million and $ 160 million as of September 30, 2023 and December 31, 2022, 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.
−Removed: Capitalized costs to obtain these contracts are reported in Other assets and were $ 125 million and $ 129 million as of June 30, 2023 and December 31, 2022, respectively.
+Added: Capitalized costs to obtain these contracts are reported in Other assets and were $ 126 million and $ 129 million as of September 30, 2023 and December 31, 2022, respectively.
Transaction and Other Fees
7 unchanged sentences
Custodial service fees are invoiced or charged to brokerage accounts on an annual basis.
−Removed: Contract liabilities for custodial service fees, which are included in Other liabilities, were $ 26 million and nil as of June 30, 2023 and December 31, 2022, respectively.
+Added: Contract liabilities for custodial service fees, which are included in Other liabilities, were $ 13 million and nil as of September 30, 2023 and December 31, 2022, respectively.
The Company earns revenue for providing trade execution services to franchise advisors.
46 unchanged sentences
Contract Costs Asset
−Removed: The Company has an asset of $ 29 million and $ 33 million as of June 30, 2023 and December 31, 2022, respectively, related to the transition of investment advisory services under an arrangement with BMO Financial Group for clients that elected to transfer U.S.
+Added: The Company has an asset of $ 27 million and $ 33 million as of September 30, 2023 and December 31, 2022, 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.
−Removed: Receivables related to revenues from contracts with customers were $ 493 million and $ 537 million as of June 30, 2023 and December 31, 2022, respectively.
+Added: Receivables related to revenues from contracts with customers were $ 504 million and $ 537 million as of September 30, 2023 and December 31, 2022, 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 additional support to these entities.
−Removed: The Company has unfunded commitments related to consolidated CLOs of $ 28 million and $ 30 million as of June 30, 2023 and December 31, 2022, respectively.
+Added: The Company has unfunded commitments related to consolidated CLOs of $ 24 million and $ 30 million as of September 30, 2023 and December 31, 2022, 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.
−Removed: 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, 2023 and December 31, 2022.
+Added: 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, 2023 and December 31, 2022.
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.
−Removed: The carrying value of the Company’s investment in property funds is reflected in other investments and was $ 66 million and $ 57 million as of June 30, 2023 and December 31, 2022, respectively.
+Added: The carrying value of the Company’s investment in property funds is reflected in other investments and was $ 63 million and $ 57 million as of September 30, 2023 and December 31, 2022, 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.
−Removed: The carrying value of the Company’s investment in these entities is reflected in other investments and was nil as of both June 30, 2023 and December 31, 2022.
+Added: The carrying value of the Company’s investment in these entities is reflected in other investments and was nil as of both September 30, 2023 and December 31, 2022.
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.
−Removed: The carrying value of the Company’s investment in these funds is reflected in other investments and was $ 31 million and $ 25 million as of June 30, 2023 and December 31, 2022, respectively.
+Added: The carrying value of the Company’s investment in these funds is reflected in other investments and was $ 30 million and $ 25 million as of September 30, 2023 and December 31, 2022, 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.
−Removed: The carrying value is reflected in other investments and was $ 81 million and $ 92 million as of June 30, 2023 and December 31, 2022, respectively.
−Removed: The Company had a liability of $ 6 million and $ 7 million as of June 30, 2023 and December 31, 2022, respectively, related to original purchase commitments not yet remitted to the VIEs.
+Added: The carrying value is reflected in other investments and was $ 77 million and $ 92 million as of September 30, 2023 and December 31, 2022, respectively.
+Added: The Company had a liability of $ 6 million and $ 7 million as of September 30, 2023 and December 31, 2022, 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:
−Removed: June 30, 2023
+Added: September 30, 2023
Level 1 Level 2 Level 3 Total
24 unchanged sentences
(1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets.
−Removed: The estimated fair value of the CLOs’ debt was $ 2.2 billion and $ 2.4 billion as of June 30, 2023 and December 31, 2022, respectively.
+Added: The estimated fair value of the CLOs’ debt was $ 2.2 billion and $ 2.4 billion as of September 30, 2023 and December 31, 2022, respectively.
AMERIPRISE FINANCIAL, INC.
3 unchanged sentences
(in millions)
−Removed: Balance at April 1, 2023
−Removed: Total gains (losses) included in:
−Removed: Net income ( 2 ) (1)
+Added: Balance at July 1, 2023
+Added: Settlements ( 1 )
Transfers into Level 3 22
Transfers out of Level 3 ( 38 )
−Removed: Balance at June 30, 2023
−Removed: Changes in unrealized gains (losses) included in net income relating to assets held at June 30, 2023
+Added: Balance at September 30, 2023
+Added: Changes in unrealized gains (losses) included in net income relating to assets held at September 30, 2023
Common Stocks Syndicated Loans
(in millions)
−Removed: Balance at April 1, 2022
+Added: Balance at July 1, 2022
Total gains (losses) included in:
1 unchanged sentence
Purchases — 42
+Added: Sales — ( 3 )
Settlements — ( 1 )
1 unchanged sentence
Transfers out of Level 3 ( 2 ) ( 25 )
−Removed: Balance at June 30, 2022
−Removed: Changes in unrealized gains (losses) included in net income relating to assets held at June 30, 2022
+Added: Balance at September 30, 2022
+Added: Changes in unrealized gains (losses) included in net income relating to assets held at September 30, 2022
$ — $ ( 5 ) (1)
3 unchanged sentences
Total gains (losses) included in:
+Added: Net income ( 3 ) (1) —
Transfers into Level 3
1 unchanged sentence
( 155 ) ( 1 )
−Removed: Balance at June 30, 2023
−Removed: Changes in unrealized gains (losses) included in net income relating to assets held at June 30, 2023
−Removed: $ ( 2 ) (1) $ —
+Added: Balance at September 30, 2023
+Added: Changes in unrealized gains (losses) included in net income relating to assets held at September 30, 2023
AMERIPRISE FINANCIAL, INC.
4 unchanged sentences
Total gains (losses) included in:
−Removed: — ( 3 ) (1) —
+Added: Net income — ( 7 ) (1) —
Transfers into Level 3
1 unchanged sentence
( 2 ) ( 117 ) ( 3 )
−Removed: Balance at June 30, 2022
−Removed: Changes in unrealized gains (losses) included in net income relating to assets held at June 30, 2022
+Added: Balance at September 30, 2022
$ — $ 165 $ —
+Added: Changes in unrealized gains (losses) included in net income relating to assets held at September 30, 2022
+Added: $ — $ ( 5 ) (1) $ —
(1) Included in Net investment income.
1 unchanged sentence
Securities and loans transferred to Level 3 represent assets with fair values that are now based on a single non-binding broker quote.
−Removed: All Level 3 measurements as of June 30, 2023 and December 31, 2022 were obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company.
+Added: All Level 3 measurements as of September 30, 2023 and December 31, 2022 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
18 unchanged sentences
The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected:
−Removed: June 30, 2023 December 31, 2022
+Added: September 30, 2023 December 31, 2022
(in millions)
11 unchanged sentences
(1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets.
−Removed: The estimated fair value of the CLOs’ debt was $ 2.2 billion and $ 2.4 billion as of June 30, 2023 and December 31, 2022, respectively.
+Added: The estimated fair value of the CLOs’ debt was $ 2.2 billion and $ 2.4 billion as of September 30, 2023 and December 31, 2022, respectively.
Interest income from syndicated loans, bonds and structured investments is recorded based on contractual rates in Net investment income.
−Removed: Gains and losses related to the changes in fair value of investments and gains and losses on sales of investments are also recorded in Net investment income.
−Removed: 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.
−Removed: 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, 2023 and 2022.
+Added: Gains and losses related to changes in the fair value of investments and gains and losses on sales of investments are also recorded in Net investment income.
+Added: Interest expense on debt is recorded in Interest and debt expense with gains and losses related to changes in the fair value of debt recorded in Net investment income.
+Added: 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 nine months ended September 30, 2023 and 2022.
Debt of the consolidated investment entities and the stated interest rates were as follows:
Carrying Value Weighted Average Interest Rate
−Removed: June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022
+Added: September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022
(in millions)
4 unchanged sentences
The following is a summary of Ameriprise Financial investments:
−Removed: June 30, 2023 December 31, 2022
+Added: September 30, 2023 December 31, 2022
(in millions)
9 unchanged sentences
The following is a summary of Net investment income:
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
(in millions)
6 unchanged sentences
Available-for-Sale securities distributed by type were as follows:
−Removed: June 30, 2023
+Added: September 30, 2023
Description of Securities
22 unchanged sentences
Total $ 43,384 $ 289 $ ( 2,840 ) $ ( 22 ) $ 40,811
−Removed: As of June 30, 2023 and December 31, 2022, accrued interest of $ 284 million and $ 237 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in Receivables.
−Removed: As of June 30, 2023 and December 31, 2022, fixed maturity securities comprised approximately 93 % and 92 %, respectively, of Ameriprise Financial investments.
+Added: As of September 30, 2023 and December 31, 2022, accrued interest of $ 326 million and $ 237 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in Receivables.
+Added: As of September 30, 2023 and December 31, 2022, fixed maturity securities comprised approximately 93 % and 92 %, 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.
−Removed: As of June 30, 2023 and December 31, 2022, the Company’s internal analysts rated $ 401 million and $ 270 million, respectively, of securities using criteria similar to those used by NRSROs.
+Added: As of September 30, 2023 and December 31, 2022, the Company’s internal analysts rated $ 278 million and $ 270 million, respectively, of securities using criteria similar to those used by NRSROs.
AMERIPRISE FINANCIAL, INC.
1 unchanged sentence
A summary of fixed maturity securities by rating was as follows:
−Removed: June 30, 2023 December 31, 2022
+Added: September 30, 2023 December 31, 2022
Amortized Cost Fair Value Percent of Total Fair Value Amortized Cost Fair Value Percent of Total Fair Value
7 unchanged sentences
Total fixed maturities $ 51,443 $ 48,193 100 % $ 43,384 $ 40,811 100 %
−Removed: (1) The amortized cost of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $ 1 million as of both June 30, 2023 and December 31, 2022.
−Removed: The fair value of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $ 1 million as of both June 30, 2023 and December 31, 2022.
+Added: (1) The amortized cost of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $ 1 million as of both September 30, 2023 and December 31, 2022.
+Added: The fair value of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $ 1 million as of both September 30, 2023 and December 31, 2022.
These securities are not rated but are included in below investment grade due to their risk characteristics.
−Removed: As of both June 30, 2023 and December 31, 2022, approximately 30 % of securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities.
−Removed: No holdings of any issuer were greater than 10% of the Company’s total shareholder’s equity as of both June 30, 2023 and December 31, 2022.
+Added: As of September 30, 2023, approximately 82 % of securities rated AA were GNMA, FNMA and FHLMC mortgage backed securities.
+Added: These issuers were downgraded in the third quarter of 2023 from AAA to AA due to the downgrade of the U.S.
+Added: Government long-term credit rating.
+Added: As of December 31, 2022, approximately 30 % of securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities.
+Added: No holdings of any issuer were greater than 10% of the Company’s total equity as of both September 30, 2023 and December 31, 2022.
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:
−Removed: Description of Securities June 30, 2023
+Added: Description of Securities September 30, 2023
Less than 12 Months 12 Months or More Total
8 unchanged sentences
Foreign government bonds and obligations 1 5 — 3 12 ( 2 ) 4 17 ( 2 )
+Added: Other securities 5 65 ( 1 ) — — — 5 65 ( 1 )
Total 675 $ 16,237 $ ( 430 ) 1,601 $ 23,146 $ ( 2,980 ) 2,276 $ 39,383 $ ( 3,410 )
13 unchanged sentences
Total 1,512 $ 24,196 $ ( 1,360 ) 512 $ 8,491 $ ( 1,480 ) 2,024 $ 32,687 $ ( 2,840 )
−Removed: As part of the Company’s ongoing monitoring process, management determined that the decrease in total 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, 2023 is primarily attributable to the impact of lower long-term interest rates and tighter credit spreads, partially offset by higher short-term interest rates.
−Removed: As of June 30, 2023, the Company did not recognize these unrealized losses in earnings because it was determined that such losses were due to non-credit factors.
+Added: As part of the Company’s ongoing monitoring process, management determined that the increase in total 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, 2023 is primarily attributable to the impact of higher interest rates.
+Added: As of September 30, 2023, 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.
−Removed: As of June 30, 2023 and December 31, 2022, approximately 96 % and 95 %, respectively, of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade.
+Added: As of September 30, 2023 and December 31, 2022, approximately 96 % and 95 %, respectively, of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade.
The following table presents rollforwards of the allowance for credit losses on Available-for-Sale securities:
1 unchanged sentence
(in millions)
−Removed: Balance at April 1, 2023
−Removed: $ 23 $ 2 $ 25
+Added: Balance at July 1, 2023
Reductions for securities sold during the period (realized) ( 7 ) ( 1 ) ( 8 )
+Added: Balance at September 30, 2023
+Added: Balance at July 1, 2022
+Added: 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
−Removed: Balance at June 30, 2023
−Removed: Balance at April 1, 2022
−Removed: Charge-offs — — —
−Removed: Balance at June 30, 2022
+Added: Balance at September 30, 2022
+Added: $ 20 $ 2 $ 22
Balance at January 1, 2023
1 unchanged sentence
Reductions for securities sold during the period (realized) ( 20 ) ( 1 ) ( 21 )
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 2023
Balance at January 1, 2022
−Removed: Charge-offs — — —
−Removed: Balance at June 30, 2022
+Added: Additions for which credit losses were not previously recorded 20 — 20
+Added: Additional increases (decreases) on securities that had an allowance recorded in a previous period — 1 1
+Added: Balance at September 30, 2022
+Added: $ 20 $ 2 $ 22
AMERIPRISE FINANCIAL, INC.
1 unchanged sentence
Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in Net investment income were as follows:
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
(in millions)
4 unchanged sentences
Total $ ( 38 ) $ ( 86 ) $ ( 29 ) $ ( 81 )
−Removed: Previously recorded allowance for credit losses was reversed during the three and six months ended June 30, 2023 primarily due to the partial sale of a corporate debt security in the communications industry.
−Removed: Other impairments for the six months ended June 30, 2023 and three and six months ended June 30, 2022 related to Available-for-Sale securities which the Company intends to sell.
+Added: Previously recorded allowance for credit losses was reversed during the three and nine months ended September 30, 2023 primarily due to the sale of a corporate debt security in the communications industry.
+Added: 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.
+Added: Other impairments for the nine months ended September 30, 2023 and three and nine months ended September 30, 2022 related to Available-for-Sale securities which the Company intended to sell.
See Note 16 for rollforwards of net unrealized investment gains (losses) included in AOCI.
−Removed: Available-for-Sale securities by contractual maturity as of June 30, 2023 were as follows:
+Added: Available-for-Sale securities by contractual maturity as of September 30, 2023 were as follows:
Amortized Cost Fair Value
22 unchanged sentences
Charge-offs ( 2 ) ( 1 ) ( 3 )
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 2023
$ 56 $ 8 $ 64
3 unchanged sentences
Charge-offs — ( 1 ) ( 1 )
−Removed: Balance at June 30, 2022
+Added: Balance at September 30, 2022
$ 53 $ 4 $ 57
−Removed: As of June 30, 2023 and December 31, 2022, accrued interest on commercial loans was $ 18 million and $ 17 million, respectively, and is recorded in Receivables and excluded from the amortized cost basis of commercial loans.
+Added: As of September 30, 2023 and December 31, 2022, accrued interest on commercial loans was $ 19 million and $ 17 million, respectively, and is recorded in Receivables and excluded from the amortized cost basis of commercial loans.
AMERIPRISE FINANCIAL, INC.
1 unchanged sentence
Purchases and Sales
−Removed: During the three months ended June 30, 2023 and 2022, the Company purchased nil and $ 57 million, respectively, of syndicated loans, and sold $ 2 million and $ 1 million , respectively, of syndicated loans.
−Removed: During the six months ended June 30, 2023 and 2022, the Company purchased $ 1 million and $ 57 million, respectively, of syndicated loans, and sold $ 3 million and $ 1 million, respectively, of syndicated loans.
−Removed: During the three months ended June 30, 2023 and 2022, the Company purchased $ 52 million and $ 22 million , respectively, of residential mortgage loans.
−Removed: During the six months ended June 30, 2023 and 2022, the Company purchased $ 95 million and $ 23 million, respectively, of residential mortgage loans.
−Removed: The allowance for credit losses for residential mortgage loans was not material as of both June 30, 2023 and December 31, 2022.
+Added: During the three months ended September 30, 2023 and 2022, the Company purchased $ 20 million and nil , respectively, of syndicated loans, and sold $ 1 million and nil , respectively, of syndicated loans.
+Added: During the nine months ended September 30, 2023 and 2022, the Company purchased $ 21 million and $ 57 million, respectively, of syndicated loans, and sold $ 4 million and $ 1 million, respectively, of syndicated loans.
+Added: During the three months ended September 30, 2023 and 2022, the Company purchased $ 49 million and $ 11 million, respectively, of residential mortgage loans.
+Added: During the nine months ended September 30, 2023 and 2022, the Company purchased $ 144 million and $ 34 million, respectively, of residential mortgage loans.
+Added: The allowance for credit losses for residential mortgage loans was not material as of both September 30, 2023 and December 31, 2022.
The Company has not acquired any loans with deteriorated credit quality as of the acquisition date.
Credit Quality Information
−Removed: Nonperforming loans were $ 11 million as of both June 30, 2023 and December 31, 2022.
+Added: Nonperforming loans were $ 12 million and $ 11 million as of September 30, 2023 and December 31, 2022, 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.
−Removed: 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, 2023 and December 31, 2022.
+Added: 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, 2023 and December 31, 2022.
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.
−Removed: There were no commercial mortgage loans past due as of both June 30, 2023 and December 31, 2022.
+Added: There were no commercial mortgage loans past due as of both September 30, 2023 and December 31, 2022.
The tables below present the amortized cost basis of commercial mortgage loans by the year of origination and loan-to-value ratio:
−Removed: June 30, 2023
+Added: September 30, 2023
Loan-to-Value Ratio 2023 2022 2021 2020 2019 Prior Total
16 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.
−Removed: For the six months ended June 30, 2023, the Company did not have any write-offs of commercial mortgage loans.
+Added: For the nine months ended September 30, 2023, the Company did not have any write-offs of commercial mortgage loans.
AMERIPRISE FINANCIAL, INC.
4 unchanged sentences
Loans Percentage
−Removed: June 30, 2023
+Added: September 30, 2023
December 31, 2022
−Removed: June 30, 2023
+Added: September 30, 2023
December 31, 2022
14 unchanged sentences
Loans Percentage
−Removed: June 30, 2023
+Added: September 30, 2023
December 31, 2022
−Removed: June 30, 2023
+Added: September 30, 2023
December 31, 2022
11 unchanged sentences
Syndicated Loans
−Removed: The investment in syndicated loans as of June 30, 2023 and December 31, 2022 was $ 154 million and $ 175 million, respectively.
+Added: The investment in syndicated loans as of September 30, 2023 and December 31, 2022 was $ 160 million and $ 175 million, respectively.
The Company’s syndicated loan portfolio is diversified across industries and issuers.
−Removed: Syndicated loans past due were not material as of June 30, 2023 and no syndicated loans were past due as of December 31, 2022.
+Added: Syndicated loans past due were not material as of September 30, 2023 and no syndicated loans were past due as of December 31, 2022.
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.
−Removed: For the six months ended June 30, 2023, the Company did not have any write-offs of syndicated loans.
+Added: For the nine months ended September 30, 2023, the Company did not have any write-offs of syndicated loans.
The tables below present the amortized cost basis of syndicated loans by origination year and internal risk rating:
−Removed: June 30, 2023
+Added: September 30, 2023
Internal Risk Rating 2023 2022 2021 2020 2019 Prior Total
22 unchanged sentences
Accordingly, the primary risk factor for advisor loans is termination status.
−Removed: The allowance for credit losses related to loans to advisors that have terminated their relationship with the Company was $ 7 million and $ 6 million as of June 30, 2023 and December 31, 2022, respectively.
−Removed: For the six months ended June 30, 2023, write-offs of advisor loans were not material.
+Added: The allowance for credit losses related to loans to advisors that have terminated their relationship with the Company was $ 7 million and $ 6 million as of September 30, 2023 and December 31, 2022, respectively.
+Added: For the nine months ended September 30, 2023, write-offs of advisor loans were not material.
The tables below present the amortized cost basis of advisor loans by origination year and termination status:
−Removed: June 30, 2023
+Added: September 30, 2023
Termination Status 2023 2022 2021 2020 2019 Prior Total
15 unchanged sentences
Delinquency rates are measured based on the number of days past due.
−Removed: Credit card receivables over 30 days past due were 1 % of total credit card receivables as of both June 30, 2023 and December 31, 2022.
+Added: Credit card receivables over 30 days past due were 2 % and 1 % of total credit card receivables as of September 30, 2023 and December 31, 2022, respectively.
The table below presents the amortized cost basis of credit card receivables by FICO score:
−Removed: June 30, 2023
+Added: September 30, 2023
December 31, 2022
9 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
−Removed: The margin loans balance was $ 1.1 billion and $ 1.2 billion as of June 30, 2023 and December 31, 2022, respectively.
+Added: The margin loans balance was $ 1.1 billion and $ 1.2 billion as of September 30, 2023 and December 31, 2022, respectively.
The Company monitors collateral supporting margin loans and requests additional collateral when necessary in order to mitigate the risk of loss.
−Removed: As of both June 30, 2023 and December 31, 2022, there was no allowance for credit losses on margin loans.
+Added: As of both September 30, 2023 an d December 31, 2022, there was no allowance for credit losses on margin loans.
Pledged Asset Lines of Credit
−Removed: The pledged asset lines of credit balance was $ 513 million and $ 589 million as of June 30, 2023 and December 31, 2022, respectively.
+Added: The pledged asset lines of credit balance was $ 523 million and $ 589 million as of September 30, 2023 and December 31, 2022, 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.
−Removed: As of both June 30, 2023 and December 31, 2022 , there w as no allowance for credit losses on pledged asset lines of credit.
+Added: As of both September 30, 2023 and December 31, 2022 , there w as no allowance for credit losses on pledged asset lines of credit.
Deposit Receivables
−Removed: Deposit receivables were $ 6.9 billion and $ 7.4 billion as of June 30, 2023 and December 31, 2022 , respectively.
+Added: Deposit receivables were $ 6.7 billion and $ 7.4 billion as of September 30, 2023 and December 31, 2022 , respectively.
Deposit receivables are collateralized by the fair value of the assets held in trusts.
−Removed: Based on management’s evaluation of the collateral value relative to the deposit receivables, the allowance for credit losses for deposit receivables was not material as of both June 30, 2023 and December 31, 2022.
+Added: Based on management’s evaluation of the collateral value relative to the deposit receivables, the allowance for credit losses for deposit receivables was not material as of both September 30, 2023 and December 31, 2022.
Modifications with Borrowers Experiencing Financial Difficulty
−Removed: There were no material modifications of financing receivables with borrowers experiencing financial difficulty by the Company during the three and six months ended June 30, 2023 .
+Added: Modifications of financing receivables with borrowers experiencing financial difficulty by the Company were not material during the three and nine months ended September 30, 2023.
Deferred Acquisition Costs and Deferred Sales Inducement Costs
44 unchanged sentences
Amortization ( 96 ) ( 18 ) ( 8 ) ( 1 ) ( 6 ) ( 33 )
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 2023
$ 1,519 $ 192 $ 37 $ 5 $ 112 $ 529
5 unchanged sentences
Amortization ( 12 ) — — ( 1 ) ( 6 ) ( 181 )
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 2023
$ 227 $ 3 $ 5 $ 18 $ 76 $ 2,723
Other broker dealer acquisition costs 2
−Removed: Balance at June 30, 2023 including broker dealer acquisition costs
+Added: Balance at September 30, 2023 including broker dealer acquisition costs
The following tables summarize the balances of and changes in DSIC, including the January 1, 2021 adoption of ASU 2018-12:
22 unchanged sentences
Amortization ( 12 ) ( 3 ) ( 15 )
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 2023
$ 139 $ 13 $ 152
1 unchanged sentence
Policyholder account balances, future policy benefits and claims consisted of the following:
−Removed: June 30, 2023 December 31, 2022
+Added: September 30, 2023 December 31, 2022
(in millions)
26 unchanged sentences
Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates.
+Added: The Company’s fixed index annuity product is a fixed annuity that includes an indexed account.
+Added: The rate of interest credited above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the specific index for the indexed
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
−Removed: The Company’s fixed index annuity product is a fixed annuity that includes an indexed account.
−Removed: The rate of interest credited for funds allocated to the indexed account is linked to the performance of the specific index for the indexed account (subject to a cap).
+Added: account (subject to a cap).
The amount allocated by a contractholder to the indexed account creates an embedded derivative which is measured at fair value.
26 unchanged sentences
Interest credited 108 1 168 4 5
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 2023
$ 4,359 $ 9,130 $ 6,183 $ 308 $ 456
12 unchanged sentences
Interest credited 39 41 50 13 429
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 2023
$ 1,490 $ 1,561 $ 2,717 $ 508 $ 26,712
43 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
−Removed: The following tables present the account values of fixed deferred annuities, fixed insurance, and the fixed portion of variable annuities and variable insurance contracts by range of guaranteed minimum interest rates (“GMIRs”) and the range of the difference between rates credited to policyholders and contractholders as of June 30, 2023 and December 31, 2022 and the respective guaranteed minimums, as well as the percentage of account values subject to rate reset in the time period indicated.
+Added: The following tables present the account values of fixed deferred annuities, fixed insurance, and the fixed portion of variable annuities and variable insurance contracts by range of guaranteed minimum interest rates (“GMIRs”) and the range of the difference between rates credited to policyholders and contractholders as of September 30, 2023 and December 31, 2022 and the respective guaranteed minimums, as well as the percentage of account values subject to rate reset in the time period indicated.
Rates are reset at management’s discretion, subject to guaranteed minimums.
−Removed: June 30, 2023
+Added: September 30, 2023
Account Values with Crediting Rates
248 unchanged sentences
Effect of changes in discount rate assumptions — ( 53 ) ( 8 ) ( 50 ) ( 111 )
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 2023
$ — $ 648 $ 97 $ 1,111 $ 1,856
12 unchanged sentences
Effect of changes in discount rate assumptions ( 127 ) ( 58 ) ( 8 ) ( 449 ) ( 642 )
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 2023
$ 1,064 $ 1,232 $ 616 $ 6,081 $ 8,993
9 unchanged sentences
Weighted average duration of liability (in years) 6 7 8 8
−Removed: The annual review of LTC future policy benefit reserves in the third quarter of 2022 resulted in assumption updates that decreased the net liability for future policy benefits by $ 10 million, partially offset by a $ 4 million decrease to reinsurance recoverable, primarily reflecting updates to morbidity, premium rate increase and benefit reduction assumptions.
+Added: The annual review of LTC future policy benefit reserves in the third quarter of 2023 resulted in assumption updates that decreased the net liability for future policy benefits by $ 9 million, partially offset by a $ 4 million decrease to reinsurance recoverable, primarily reflecting updates to premium rate increase assumptions.
+Added: The annual review of LTC future policy benefit reserves in the third quarter
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
−Removed: Receivables included $ 4.2 billion of reinsurance recoverables as of both June 30, 2023 and December 31, 2022, including $ 2.7 billion related to LTC risk ceded to Genworth as of both June 30, 2023 and December 31, 2022.
+Added: of 2022 resulted in assumption updates that decreased the net liability for future policy benefits by $ 10 million, partially offset by a $ 4 million decrease to reinsurance recoverable, primarily reflecting updates to morbidity, premium rate increase and benefit reduction assumptions.
+Added: The annual review of disability insurance future policy benefit reserves in the third quarter of 2023 resulted in assumption updates that decreased the net liability for future policy benefits by $ 6 million, offset by a $ 1 million decrease to reinsurance recoverable, primarily reflecting updates to claim termination assumptions.
+Added: The annual review of term life insurance future policy benefit reserves in the third quarter of 2023 resulted in assumption updates that increased the net liability for future policy benefits by $ 2 million, offset by a $ 2 million increase to reinsurance recoverable, reflecting updates to lapse assumptions.
+Added: The annual review of term life insurance future policy benefit reserves in the third quarter of 2022 resulted in assumption updates that decreased the net liability for future policy benefits $ 9 million, offset by a $ 16 million decrease to reinsurance recoverable, reflecting updates to lapse assumptions.
+Added: Receivables included $ 4.0 billion and $ 4.2 billion of reinsurance recoverables as of September 30, 2023 and December 31, 2022, respectively, including $ 2.5 billion and $ 2.7 billion related to LTC risk ceded to Genworth as of September 30, 2023 and December 31, 2022, respectively.
The balances of and changes in additional liabilities related to insurance guarantees were as follows:
8 unchanged sentences
Impact of change in net unrealized (gains) losses on securities ( 13 ) ( 1 ) ( 1 ) ( 15 )
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 2023
$ 1,159 $ 79 $ 8 $ 1,246
16 unchanged sentences
Weighted average duration of reserves (in years) 10 8 6
+Added: AMERIPRISE FINANCIAL, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The amount of revenue and interest recognized in the Statement of Operations was as follows:
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
Gross Premiums Interest Expense
5 unchanged sentences
Total $ 490 $ 290
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Years Ended December 31,
25 unchanged sentences
Amortization ( 1 ) ( 10 ) ( 14 ) ( 25 )
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 2023
$ 27 $ 184 $ 258 $ 469
+Added: AMERIPRISE FINANCIAL, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Separate Account Assets and Liabilities
Aggregate fair value of separate account assets, by major asset category, consisted of the following:
−Removed: June 30, 2023 December 31, 2022
+Added: September 30, 2023 December 31, 2022
(in millions)
5 unchanged sentences
Total $ 72,354 $ 73,962
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The balances of and changes in separate account liabilities were as follows:
9 unchanged sentences
Other charges — — 35 35
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 2023
$ 61,595 $ 7,997 $ 2,762 $ 72,354
17 unchanged sentences
The Company previously offered contracts containing GMWB, GMAB, or GMIB provisions.
+Added: AMERIPRISE FINANCIAL, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The GMDB provisions provide a specified minimum return upon death of the contractholder.
2 unchanged sentences
• Return of premium — provides purchase payments minus adjusted partial surrenders.
−Removed: • Reset — provides that the value resets to the account value every sixth contract anniversary minus adjusted partial surrenders.
+Added: • Reset — provides that the value resets to the account value at specified contract anniversary intervals minus adjusted partial surrenders.
This provision was often provided in combination with the return of premium provision and is no longer offered.
2 unchanged sentences
At contract issue, the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually to the account value (a “step-up”) in the case of favorable market performance or by a benefit credit if the contract includes this provision.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The Company has GMWB riders in force, which contain one or more of the following provisions:
50 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
(in millions, except age)
8 unchanged sentences
Actual policyholder behavior different from expected behavior ( 16 ) ( 21 ) ( 10 ) 11
+Added: Effect of changes in other future expected assumptions 128 ( 139 ) 128 ( 139 )
Effect of changes in the instrument-specific credit risk on market risk benefits ( 23 ) 4 ( 68 ) ( 835 )
12 unchanged sentences
The following tables provide a summary of the significant inputs and assumptions used in the fair value measurements developed by the Company or reasonably available to the Company of market risk benefits:
−Removed: June 30, 2023
+Added: September 30, 2023
Fair Value Valuation Technique Significant Inputs and Assumptions Range Weighted
35 unchanged sentences
Changes to Significant Inputs and Assumptions:
−Removed: During the year ended December 31, 2022, the Company updated inputs and assumptions based on management’s review of experience studies.
+Added: During the nine months ended September 30, 2023 and year ended December 31, 2022, the Company updated inputs and assumptions based on management’s review of experience studies.
These updates resulted in the following notable changes in the fair value estimates of market risk benefits calculations:
+Added: Nine months ended September 30, 2023
• Updates to utilization of guaranteed withdrawals assumptions resulted in a decrease to pre-tax income of $ 18 million.
−Removed: • Updates to surrender rates resulted in a decrease to pre-tax income of $ 200 million.
−Removed: • Updates to mortality rates resulted in a decrease to pre-tax income of $ 49 million.
+Added: • Updates to surrender assumptions resulted in a decrease to pre-tax income of $ 110 million.
+Added: Year ended December 31, 2022
+Added: • Updates to utilization of guaranteed withdrawals assumptions resulted in a decrease to pre-tax income of $ 39 million.
+Added: • Updates to surrender assumptions resulted in a decrease to pre-tax income of $ 200 million.
+Added: • Updates to mortality assumptions resulted in a decrease to pre-tax income of $ 49 million.
Refer to the rollforward of market risk benefits for the impacts of changes to interest rate, equity market, volatility and nonperformance risk assumptions.
1 unchanged sentence
Significant increases (decreases) in utilization and volatility used in the fair value measurement of market risk benefits in isolation would have resulted in a significantly higher (lower) liability value.
−Removed: Significant increases (decreases) in nonperformance risk and surrender rates used in the fair value measurement of market risk benefits in isolation would have resulted in a significantly lower (higher) liability value.
−Removed: Significant increases (decreases) in mortality rates used in the fair value measurement of the death benefit portion of market risk benefits in isolation would have resulted in a significantly higher (lower) liability value whereas significant increases (decreases) in mortality rates used in the fair values measurement of the life contingent portion of market risk benefits in isolation would have resulted in a significantly lower (higher) liability value.
−Removed: Surrender rates, utilization rates and mortality rates vary with the type of base product, type of rider, duration of the policy, age of the contractholder, calendar year of the projection, previous withdrawal history, and the relationship between the value of the guaranteed benefit and the contract accumulation value.
+Added: Significant increases (decreases) in nonperformance risk and surrender assumptions used in the fair value measurement of market risk benefits in isolation would have resulted in a significantly lower (higher) liability value.
+Added: Significant increases (decreases) in mortality assumptions used in the fair value measurement of the death benefit portion of market risk benefits in isolation would have resulted in a significantly higher (lower) liability value whereas significant increases (decreases) in mortality rates used in the fair values measurement of the life contingent portion of market risk benefits in isolation would have resulted in a significantly lower (higher) liability value.
+Added: Surrender assumptions, utilization assumptions and mortality assumptions vary with the type of base product, type of rider, duration of the policy, age of the contractholder, calendar year of the projection, previous withdrawal history, and the relationship between the value of the guaranteed benefit and the contract accumulation value.
+Added: Determination of Fair Value
+Added: The Company values market risk benefits using internal valuation models.
+Added: These models include observable capital market assumptions and significant unobservable inputs related to implied volatility as well as contractholder behavior assumptions that include margins for risk, all of which the Company believes a market participant would expect.
+Added: The fair value also reflects a current estimate of the Company’s nonperformance risk.
+Added: Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3.
AMERIPRISE FINANCIAL, INC.
2 unchanged sentences
Outstanding Balance Stated Interest Rate
−Removed: June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022
+Added: September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022
(in millions)
18 unchanged sentences
Interest payments are due semi-annually in arrears on May 15 and November 15, which commences on November 15, 2023.
+Added: On October 16, 2023, the Company repaid $ 750 million principal amount of its 4.0 % senior notes at maturity.
Short-Term Borrowings
The Company’s life insurance and bank subsidiaries are members of the FHLB of Des Moines which provides access to collateralized borrowings.
−Removed: As of June 30, 2023 and December 31, 2022, the Company’s life insurance subsidiary had accessed collateralized borrowings and pledged (granted a lien on) certain investments, primarily commercial mortgage backed securities, with an aggregate fair value of $ 918 million and $ 962 million, respectively.
−Removed: The remaining maturity of outstanding FHLB advances was less than three months as of both June 30, 2023 and December 31, 2022.
+Added: As of September 30, 2023 and December 31, 2022, the Company’s life insurance subsidiary had accessed collateralized borrowings and pledged (granted a lien on) certain investments, primarily commercial mortgage backed securities, with an aggregate fair value of $ 994 million and $ 962 million, respectively.
+Added: The remaining maturity of outstanding FHLB advances was less than three months as of both September 30, 2023 and December 31, 2022.
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.
−Removed: The Company’s bank subsidiary had no outstanding obligations to the FHLB as of both June 30, 2023 and December 31, 2022.
+Added: The Company’s bank subsidiary had no outstanding obligations to the FHLB as of both September 30, 2023 and December 31, 2022.
The Company’s bank subsidiary maintains access to collateralized borrowings from the Federal Reserve.
−Removed: As of both June 30, 2023 and December 31, 2022, there were no outstanding obligations to the Federal Reserve.
+Added: As of both September 30, 2023 and December 31, 2022, there were no outstanding obligations to the Federal Reserve.
In June 2021, the Company entered into an amended and restated credit agreement that provides for an unsecured revolving credit facility of up to $ 1.0 billion that expires in June 2026.
6 unchanged sentences
In the event of default, an additional 2 % interest will accrue during such period of default.
−Removed: As of both June 30, 2023 and December 31, 2022, the Company had no borrowings outstanding and $ 1 million of letters of credit issued against the facility.
+Added: As of both September 30, 2023 and December 31, 2022, the Company had no borrowings outstanding and $ 1 million of letters of credit issued against the facility.
AMERIPRISE FINANCIAL, INC.
1 unchanged sentence
Company’s credit facility contains various administrative, reporting, legal and financial covenants.
−Removed: The Company was in compliance with all such covenants as of both June 30, 2023 and December 31, 2022.
+Added: The Company was in compliance with all such covenants as of both September 30, 2023 and December 31, 2022.
American Enterprise Investment Services, Inc.
(“AEIS”), a subsidiary of the Company, has credit agreements for uncommitted lines of credit with third party financial institutions, having a combined credit limit of $ 500 million.
−Removed: As of both June 30, 2023 and December 31, 2022, AEIS had no borrowings outstanding.
+Added: As of both September 30, 2023 and December 31, 2022, AEIS had no borrowings outstanding.
Fair Values of Assets and Liabilities
13 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 5 for the balances of assets and liabilities for consolidated investment entities):
−Removed: June 30, 2023
+Added: September 30, 2023
Level 1 Level 2 Level 3 Total
83 unchanged sentences
Total liabilities at fair value $ 354 $ 2,611 $ 2,826 $ 5,791
−Removed: (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.
+Added: (1) Amounts are comprised of 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) See Note 11 for additional information related to market risk benefits, including the balances of and changes in market risk benefits as well as the significant inputs and assumptions used in the fair value measurements of market risk benefits.
−Removed: (3) The Company’s adjustment for nonperformance risk resulted in a $ 205 million cumulative decrease to the embedded derivatives as of June 30, 2023.
+Added: (3) The Company’s adjustment for nonperformance risk resulted in a $ 184 million cumulative decrease to the embedded derivatives as of September 30, 2023.
AMERIPRISE FINANCIAL, INC.
6 unchanged sentences
(in millions)
−Removed: Balance at April 1, 2023
+Added: Balance at July 1, 2023
$ 446 $ 3 $ 449 $ 49
Total gains (losses) included in:
−Removed: Net income — — — (1) 2
Other comprehensive income (loss) ( 3 ) — ( 3 ) —
1 unchanged sentence
Settlements ( 18 ) — ( 18 ) ( 1 )
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 2023
$ 461 $ 3 $ 464 $ 48
−Removed: Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2023
+Added: Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at September 30, 2023
$ ( 4 ) $ — $ ( 4 ) $ —
2 unchanged sentences
(in millions)
−Removed: Balance at April 1, 2023
+Added: Balance at July 1, 2023
$ 46 $ 809 $ 557 $ 1,412 $ 78
1 unchanged sentence
Net income — (2) 2 (2) ( 246 ) (3) ( 244 ) — (4)
+Added: Other comprehensive income (loss) — — — — ( 1 )
Issues — 6 35 41 7
Settlements ( 1 ) ( 30 ) ( 46 ) ( 77 ) ( 7 )
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 2023
$ 45 $ 787 $ 300 $ 1,132 $ 77
−Removed: Changes in unrealized (gains) losses in net income relating to liabilities held at June 30, 2023
+Added: Changes in unrealized (gains) losses in net income relating to liabilities held at September 30, 2023
$ ( 246 ) (3)
+Added: $ ( 244 ) $ —
AMERIPRISE FINANCIAL, INC.
1 unchanged sentence
Available-for-Sale Securities Receivables
−Removed: Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total Fixed Deferred Indexed Annuity Ceded Embedded Derivatives
+Added: Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total Fixed Deferred Indexed Annuity Ceded Embedded Derivatives
(in millions)
−Removed: Balance at April 1, 2022
+Added: Balance at July 1, 2022
$ 458 $ 139 $ 21 $ 618 $ 49
5 unchanged sentences
Transfers out of Level 3 — ( 139 ) ( 14 ) ( 153 ) —
−Removed: Balance at June 30, 2022
−Removed: $ 458 $ 139 $ — $ 21 $ 618 $ 49
−Removed: Changes in unrealized gains (losses) in net income relating to assets held at June 30, 2022
+Added: Balance at September 30, 2022
$ 403 $ 246 $ 24 $ 673 $ 47
−Removed: Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2022
+Added: 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)
−Removed: Balance at April 1, 2022
+Added: Balance at July 1, 2022
$ 45 $ 719 $ ( 362 ) $ 402 $ 61
4 unchanged sentences
Settlements ( 1 ) ( 26 ) 3 ( 24 ) ( 8 )
−Removed: Balance at June 30, 2022
+Added: Balance at September 30, 2022
$ 43 $ 689 $ ( 513 ) (5) $ 219 $ 63
−Removed: Changes in unrealized (gains) losses in net income relating to liabilities held at June 30, 2022
+Added: Changes in unrealized (gains) losses in net income relating to liabilities held at September 30, 2022
$ — $ ( 22 ) (2)
+Added: $ ( 173 ) (3)
+Added: $ ( 195 ) $ —
Available-for-Sale Securities Receivables
8 unchanged sentences
Settlements ( 56 ) ( 3 ) ( 59 ) ( 2 )
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 2023
$ 461 $ 3 $ 464 $ 48
−Removed: Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2023
+Added: Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at September 30, 2023
$ ( 3 ) $ — $ ( 3 ) $ —
8 unchanged sentences
Net income 3 (2) 94 (2) 443 (3) 540 1 (4)
−Removed: Other comprehensive income (loss) — — — — 1
Issues — 46 66 112 40
Settlements ( 2 ) ( 92 ) ( 72 ) ( 166 ) ( 26 )
−Removed: Balance at June 30, 2023
−Removed: $ 46 $ 809 $ 557 $ 1,412 $ 78
−Removed: Changes in unrealized (gains) losses in net income relating to liabilities held at June 30, 2023
+Added: Balance at September 30, 2023
$ 45 $ 787 $ 300 $ 1,132 $ 77
+Added: Changes in unrealized (gains) losses in net income relating to liabilities held at September 30, 2023
Available-for-Sale Securities Receivables
9 unchanged sentences
Transfers out of Level 3 — ( 139 ) ( 147 ) ( 14 ) ( 300 ) —
−Removed: Balance at June 30, 2022
+Added: Balance at September 30, 2022
$ 403 $ 246 $ — $ 24 $ 673 $ 47
−Removed: Changes in unrealized gains (losses) in net income relating to assets held at June 30, 2022
+Added: Changes in unrealized gains (losses) in net income relating to assets held at September 30, 2022
$ ( 1 ) $ — $ — $ — $ ( 1 ) (1) $ —
−Removed: Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2022
+Added: Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at September 30, 2022
$ ( 45 ) $ ( 4 ) $ — $ — $ ( 49 ) $ —
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities
8 unchanged sentences
Settlements ( 3 ) ( 80 ) ( 17 ) ( 100 ) ( 19 )
−Removed: Balance at June 30, 2022
+Added: Balance at September 30, 2022
$ 43 $ 689 $ ( 513 ) (5) $ 219 $ 63
−Removed: Changes in unrealized (gains) losses in net income relating to liabilities held at June 30, 2022
+Added: Changes in unrealized (gains) losses in net income relating to liabilities held at September 30, 2022
$ — $ ( 162 ) (2)
+Added: $ ( 939 ) (3)
+Added: $ ( 1,101 ) $ —
+Added: AMERIPRISE FINANCIAL, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
(1) Included in Net investment income.
2 unchanged sentences
(4) Included in General and administrative expense.
−Removed: (5) The fair value of the structured variable annuity embedded derivatives was a net asset as of January 1, 2023 and June 30, 2022 and the amounts are presented as contra liabilities.
−Removed: The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $ 4 million and $ 87 million, net of the reinsurance accrual, for the three months ended June 30, 2023 and 2022, respectively.
−Removed: The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $ 61 million and $ 120 million, net of the reinsurance accrual, for the six months ended June 30, 2023 and 2022, respectively.
+Added: (5) The fair value of the structured variable annuity embedded derivatives was a net asset as of January 1, 2023 and September 30, 2022 and the amounts are presented as contra liabilities.
+Added: The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $( 17 ) million and $ 6 million, net of the reinsurance accrual, for the three months ended September 30, 2023 and 2022, respectively.
+Added: The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $ 44 million and $ 126 million, net of the reinsurance accrual, for the nine months ended September 30, 2023 and 2022, 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.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: 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:
−Removed: June 30, 2023
+Added: September 30, 2023
Fair Value Valuation Technique Unobservable Input Range Weighted Average
22 unchanged sentences
0.0 % – 10.5 % 2.7 %
+Added: AMERIPRISE FINANCIAL, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
December 31, 2022
31 unchanged sentences
(6) The fair value of the structured variable annuity embedded derivatives was a net asset as of December 31, 2022 and the amount is presented as a contra liability.
−Removed: Level 3 measurements not included in the tables above are obtained from non-binding broker quotes where unobservable inputs
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
−Removed: utilized in the fair value calculation are not reasonably available to the Company.
+Added: 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.
−Removed: 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.
+Added: Significant increases (decreases) in the surrender assumption 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.
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.
−Removed: Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurements of the fixed deferred indexed annuity embedded derivatives and structured variable annuity embedded derivatives in isolation would have resulted in a significantly lower (higher) liability value.
+Added: Significant increases (decreases) in nonperformance risk and surrender assumption used in the fair value measurements of the fixed deferred indexed annuity embedded derivatives and structured variable annuity embedded derivatives in isolation would have resulted in a significantly lower (higher) liability value.
Significant increases (decreases) in the discount rate used in the fair value measurement of the contingent consideration liability in isolation would have resulted in a significantly lower (higher) fair value measurement.
+Added: AMERIPRISE FINANCIAL, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Determination of Fair Value
23 unchanged sentences
Given the significance of the unobservable inputs to this fair value measurement, the fair value of the investment in certain asset backed securities is classified as Level 3.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Management is responsible for the fair values recorded on the financial statements.
16 unchanged sentences
Given the significance of the unobservable surrender rates, these embedded derivatives are classified as Level 3.
+Added: AMERIPRISE FINANCIAL, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements.
2 unchanged sentences
These measurements are classified as Level 2 within the fair value hierarchy and include swaps, foreign currency forwards and the majority of options.
−Removed: The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of both June 30, 2023 and December 31, 2022.
+Added: The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of both September 30, 2023 and December 31, 2022.
See Note 14 and Note 15 for further information on the credit risk of derivative instruments and related collateral.
18 unchanged sentences
The variation margin on futures contracts is also classified as Level 1.
−Removed: The fair value of derivatives that are
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
−Removed: traded in less active OTC markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels.
+Added: The fair value of derivatives that are traded in less active OTC markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels.
These measurements are classified as Level 2 within the fair value hierarchy and include swaps, foreign currency forwards and the majority of options.
−Removed: The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of both June 30, 2023 and December 31, 2022.
+Added: The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of both September 30, 2023 and December 31, 2022.
See Note 14 and Note 15 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).
−Removed: The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $ 49 million and $ 58 million as of June 30, 2023 and December 31, 2022, respectively, and is classified as Level 3 in the fair value hierarchy.
+Added: The balance of
+Added: AMERIPRISE FINANCIAL, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
+Added: affordable housing partnerships measured at fair value on a nonrecurring basis was $ 44 million and $ 58 million as of September 30, 2023 and December 31, 2022, 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:
−Removed: June 30, 2023
+Added: September 30, 2023
Carrying Value Fair Value
14 unchanged sentences
Debt and other liabilities 3,879 124 3,600 6 3,730
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
December 31, 2022
23 unchanged sentences
Separate account liabilities are primarily investment contracts in pooled pension funds offered by Threadneedle.
−Removed: Debt and other liabilities include the Company’s long-term debt, short-term borrowings, securities loaned and future funding commitments to affordable housing partnerships and other real estate partnerships.
+Added: Debt and other liabilities include the Company’s long-term debt, short-term borrowings, securities loaned and future funding
+Added: AMERIPRISE FINANCIAL, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
+Added: commitments to affordable housing partnerships and other real estate partnerships.
See Note 12 for further information on the Company’s long-term debt and short-term borrowings.
7 unchanged sentences
The Company’s policy is to recognize amounts subject to master netting arrangements on a gross basis in the Consolidated Balance Sheets.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The following tables present the gross and net information about the Company’s assets subject to master netting arrangements:
−Removed: June 30, 2023
+Added: September 30, 2023
Gross Amounts of Recognized Assets
30 unchanged sentences
(1) Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets.
+Added: AMERIPRISE FINANCIAL, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements:
−Removed: June 30, 2023
+Added: September 30, 2023
Gross Amounts of Recognized Liabilities
14 unchanged sentences
Total $ 3,335 $ — $ 3,335 $ ( 2,981 ) $ ( 22 ) $ ( 327 ) $ 5
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
December 31, 2022
36 unchanged sentences
The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives:
−Removed: June 30, 2023 December 31, 2022
+Added: September 30, 2023 December 31, 2022
Notional Gross Fair Value Notional Gross Fair Value
31 unchanged sentences
The fair value of the SMC embedded derivative liability is included in Customer deposits.
−Removed: (3) The fair value of the structured variable annuity embedded derivatives as of June 30, 2023 included $ 617 million of individual contracts in a liability position and $ 60 million of individual contracts in an asset position.
+Added: (3) The fair value of the structured variable annuity embedded derivatives as of September 30, 2023 included $ 459 million of individual contracts in a liability position and $ 159 million of individual contracts in an asset position.
The fair value of the structured variable annuity embedded derivatives as of December 31, 2022 included $ 194 million of individual contracts in a liability position and $ 331 million of individual contracts in an asset position.
See Note 13 for additional information regarding the Company’s fair value measurement of derivative instruments.
−Removed: As of June 30, 2023 and December 31, 2022, investment securities with a fair value of $ 1.6 billion and $ 1.7 billion, respectively, were pledged to meet contractual obligations under derivative contracts, of which $ 227 million and $ 302 million, respectively, may be sold, pledged or rehypothecated by the counterparty.
−Removed: As of June 30, 2023 and December 31, 2022, investment securities with a fair value of $ 290 million and $ 14 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $ 279 million and $ 5 million, respectively, may be sold, pledged or rehypothecated by the Company.
−Removed: As of both June 30, 2023 and December 31, 2022, the Company had sold, pledged or rehypothecated none of these securities.
−Removed: In addition, as of both June 30, 2023 and December 31, 2022, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.
+Added: As of September 30, 2023 and December 31, 2022, investment securities with a fair value of $ 1.6 billion and $ 1.7 billion, respectively, were pledged to meet contractual obligations under derivative contracts, of which $ 264 million and $ 302 million, respectively, may be sold, pledged or rehypothecated by the counterparty.
+Added: As of September 30, 2023 and December 31, 2022, investment securities with a fair value of $ 212 million and $ 14 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $ 211 million and $ 5 million, respectively, may be sold, pledged or rehypothecated by the Company.
+Added: As of both September 30, 2023 and December 31, 2022, the Company had sold, pledged or rehypothecated none of these securities.
+Added: In addition, as of both September 30, 2023 and December 31, 2022, 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)
−Removed: Three Months Ended June 30, 2023
+Added: Three Months Ended September 30, 2023
Interest rate contracts $ — $ — $ — $ — $ ( 7 ) $ ( 1,073 ) $ — $ —
3 unchanged sentences
IUL embedded derivatives — — — 28 — — — —
−Removed: Fixed deferred indexed annuity and deposit receivables embedded derivatives — — — ( 1 ) — — — —
Structured variable annuity embedded derivatives — — — — 246 — — —
1 unchanged sentence
Total gain (loss) $ 1 $ — $ ( 46 ) $ 9 $ 120 $ ( 623 ) $ — $ ( 5 )
−Removed: Three Months Ended June 30, 2022
+Added: Three Months Ended September 30, 2022
Interest rate contracts $ — $ — $ — $ — $ ( 19 ) $ ( 734 ) $ — $ —
3 unchanged sentences
IUL embedded derivatives — — — 48 — — — —
−Removed: Fixed deferred indexed annuity and deposit receivables embedded derivatives — — — 2 — — — —
Structured variable annuity embedded derivatives — — — — 173 — — —
+Added: SMC embedded derivatives — 1 — — — — — —
Total gain (loss) $ 4 $ — $ ( 40 ) $ 25 $ 93 $ ( 128 ) $ — $ ( 13 )
3 unchanged sentences
(in millions)
−Removed: Six Months Ended June 30, 2023
+Added: Nine Months Ended September 30, 2023
Interest rate contracts $ — $ — $ — $ — $ ( 15 ) $ ( 1,307 ) $ — $ —
7 unchanged sentences
Total gain (loss) $ ( 1 ) $ ( 1 ) $ 43 $ 31 $ ( 67 ) $ ( 1,712 ) $ — $ 9
−Removed: Six Months Ended June 30, 2022
+Added: Nine Months Ended September 30, 2022
Interest rate contracts $ 1 $ — $ ( 3 ) $ — $ ( 20 ) $ ( 2,795 ) $ ( 1 ) $ —
5 unchanged sentences
Structured variable annuity embedded derivatives — — — — 939 — — —
+Added: SMC embedded derivatives — 1 — — — — — —
Total gain (loss) $ 13 $ — $ ( 229 ) $ 110 $ 569 $ ( 872 ) $ ( 1 ) $ ( 42 )
4 unchanged sentences
The deferred premium associated with certain of the above options is paid or received semi-annually over the life of the contract or at maturity.
−Removed: The following is a summary of the payments the Company is scheduled to make and receive for these options as of June 30, 2023:
+Added: The following is a summary of the payments the Company is scheduled to make and receive for these options as of September 30, 2023:
Premiums Payable Premiums Receivable
2 unchanged sentences
Total $ 926 $ 131
−Removed: (1) 2023 amounts represent the amounts payable and receivable for the period from July 1, 2023 to December 31, 2023.
+Added: (1) 2023 amounts represent the amounts payable and receivable for the period from October 1, 2023 to December 31, 2023.
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.
1 unchanged sentence
As a result of fluctuations in equity markets, the obligation incurred by the Company related to structured variable annuity, IUL and stock market certificate products will positively or negatively impact earnings over the life of these products.
−Removed: The equity component of structured variable annuity, IUL and stock market certificate product obligations are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings.
+Added: The equity components of structured variable annuity, IUL and stock market certificate product obligations are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings.
As a means of economically hedging its obligations under the provisions of these products, the Company enters into interest rate swaps, index options and futures contracts.
9 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.
−Removed: For both the three and six months ended June 30, 2023 and 2022, the amounts reclassified from AOCI to earnings related to cash flow hedges were immaterial.
−Removed: The estimated net amount recorded in AOCI as of June 30, 2023 that the Company expects to reclassify to earnings as a reduction to Interest and debt expense within the next twelve months is $ 0.8 million and as an increase to General and administrative expense is $ 0.6 million.
+Added: For both the three and nine months ended September 30, 2023 and 2022, the amounts reclassified from AOCI to earnings related to cash flow hedges were immaterial.
+Added: The estimated net amount recorded in AOCI as of September 30, 2023 that the Company expects to reclassify to earnings as a reduction to Interest and debt expense within the next twelve months is $ 0.8 million and as an increase to General and administrative expense is $ 0.6 million.
Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is 12 years and relates to forecasted debt interest payments.
3 unchanged sentences
As the Company determined that the forward contracts are effective, the change in fair value of the derivatives is recognized in AOCI as part of the foreign currency translation adjustment.
−Removed: For the three months ended June 30, 2023 and 2022, the Company recognized a loss of $ 1 million and a gain of $ 10 million, respectively, in OCI.
−Removed: For the six months ended June 30, 2023 and 2022, the Company recognized a loss of $ 3 million and a gain of $ 14 million, respectively, in OCI.
+Added: For the three months ended September 30, 2023 and 2022, the Company recognized a gain of $ 2 million and a gain of $ 8 million, respectively, in OCI.
+Added: For the nine months ended September 30, 2023 and 2022, the Company recognized a loss of $ 1 million and a gain of $ 22 million, respectively, in OCI.
AMERIPRISE FINANCIAL, INC.
7 unchanged sentences
If these termination provisions were to be triggered, the Company’s counterparty could require immediate settlement of any net liability position.
−Removed: As of June 30, 2023 and December 31, 2022, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $ 147 million and $ 240 million, respectively.
−Removed: The aggregate fair value of assets posted as collateral for such instruments as of June 30, 2023 and December 31, 2022 was $ 146 million and $ 236 million, respectively.
−Removed: If the credit contingent provisions of derivative contracts in a net liability position as of June 30, 2023 and December 31, 2022 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 $ 1 million and $ 4 million, respectively.
+Added: As of September 30, 2023 and December 31, 2022, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $ 198 million and $ 240 million, respectively.
+Added: The aggregate fair value of assets posted as collateral for such instruments as of September 30, 2023 and December 31, 2022 was $ 196 million and $ 236 million, respectively.
+Added: If the credit contingent provisions of derivative contracts in a net liability position as of September 30, 2023 and December 31, 2022 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 $ 2 million and $ 4 million, respectively.
Shareholders’ Equity
The following tables present the amounts related to each component of OCI:
−Removed: Three Months Ended June 30,
+Added: 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 ( 802 ) 179 ( 623 ) ( 1,329 ) 300 ( 1,029 )
−Removed: Net unrealized gains (losses) on derivatives:
−Removed: Net unrealized gains (losses) on derivatives arising during the period — — — ( 2 ) — ( 2 )
−Removed: Net unrealized gains (losses) on derivatives — — — ( 2 ) — ( 2 )
Effect of changes in discount rate assumptions on certain long-duration contracts 221 ( 47 ) 174 306 ( 65 ) 241
Effect of changes in instrument-specific credit risk on MRBs 23 ( 5 ) 18 ( 4 ) 1 ( 3 )
+Added: Defined benefit plans:
+Added: Net gains (losses) — — — 1 — 1
+Added: Defined benefit plans — — — 1 — 1
Foreign currency translation ( 76 ) 16 ( 60 ) ( 160 ) 33 ( 127 )
2 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
Pretax Income Tax Benefit (Expense) Net of Tax Pretax Income Tax Benefit (Expense) Net of Tax
13 unchanged sentences
Effect of changes in instrument-specific credit risk on MRBs 68 ( 15 ) 53 835 ( 178 ) 657
+Added: Defined benefit plans:
+Added: Net gains (losses) — — — 1 — 1
+Added: Defined benefit plans — — — 1 — 1
Foreign currency translation 18 ( 4 ) 14 ( 373 ) 78 ( 295 )
14 unchanged sentences
(in millions)
−Removed: Balance at April 1, 2023
+Added: Balance at July 1, 2023
$ ( 1,951 ) $ 5 $ ( 78 ) $ 15 $ ( 75 ) $ ( 264 ) $ ( 1 ) $ ( 2,349 )
2 unchanged sentences
Total OCI ( 623 ) — 174 18 — ( 60 ) — ( 491 )
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 2023
$ ( 2,574 ) $ 5 $ 96 $ 33 $ ( 75 ) $ ( 324 ) $ ( 1 ) $ ( 2,840 )
−Removed: Balance at April 1, 2022
+Added: Balance at July 1, 2022
$ ( 1,254 ) $ 3 $ ( 243 ) $ 233 $ ( 151 ) $ ( 335 ) $ ( 1 ) $ ( 1,748 )
2 unchanged sentences
Total OCI ( 1,029 ) — 241 ( 3 ) 1 ( 127 ) — ( 917 )
−Removed: Balance at June 30, 2022
+Added: Balance at September 30, 2022
$ ( 2,283 ) $ 3 $ ( 2 ) $ 230 $ ( 150 ) $ ( 462 ) $ ( 1 ) $ ( 2,665 )
4 unchanged sentences
Total OCI ( 531 ) 2 168 53 — 14 — ( 294 )
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 2023
$ ( 2,574 ) $ 5 $ 96 $ 33 $ ( 75 ) $ ( 324 ) $ ( 1 ) $ ( 2,840 )
4 unchanged sentences
Total OCI ( 3,316 ) ( 1 ) 931 657 1 ( 295 ) — ( 2,023 )
−Removed: Balance at June 30, 2022
+Added: Balance at September 30, 2022
$ ( 2,283 ) $ 3 $ ( 2 ) $ 230 $ ( 150 ) $ ( 462 ) $ ( 1 ) $ ( 2,665 )
−Removed: For the six months ended June 30, 2023 and 2022, the Company repurchased a total of 3.2 million shares and 3.2 million shares, respectively, of its common stock for an aggregate cost of $ 998 million and $ 887 million, respectively.
+Added: For the nine months ended September 30, 2023 and 2022, the Company repurchased a total of 4.7 million shares and 5.0 million shares, respectively, of its common stock for an aggregate cost of $ 1.5 billion and $ 1.4 billion, respectively.
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.
−Removed: As of June 30, 2023, the Company had $ 0.6 billion remaining under this share repurchase authorization.
On July 24, 2023, the Company’s Board of Directors authorized an additional $ 3.5 billion for the repurchase of the Company’s common stock through September 30, 2025.
+Added: As of September 30, 2023, the Company had $ 3.6 billion remaining under these share repurchase authorizations.
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.
−Removed: For the six months ended June 30, 2023 and 2022, 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 $ 88 million and $ 91 million, respectively, related to the holders’ income tax obligations on the vesting date.
+Added: For the nine months ended September 30, 2023 and 2022, 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 $ 99 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.
−Removed: For the six months ended June 30, 2023 and 2022, the Company
+Added: For the nine months ended September 30, 2023 and
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
−Removed: reacquired 0.2 million shares and 0.2 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $ 73 million and $ 75 million, respectively.
−Removed: During the six months ended June 30, 2023 and 2022, the Company reissued 0.6 million and 0.7 million, respectively, treasury shares for restricted stock award grants, performance share units and issuance of shares vested under advisor deferred compensation plans.
−Removed: The Company’s effective tax rate was 21.1 % and 20.6 % for the three months ended June 30, 2023 and 2022, respectively.
−Removed: The Company’s effective tax rate was 19.5 % and 19.1 % for the six months ended June 30, 2023 and 2022, respectively.
−Removed: The effective tax rate for the three months ended June 30, 2023 was higher than the statutory tax rate as a result of state income taxes, net of federal benefit.
−Removed: The effective tax rate for the six months ended June 30, 2023 was lower than the statutory tax rate as a result of tax preferred items including incentive compensation and foreign tax credits, partially offset by state income taxes, net of federal benefit.
−Removed: 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 and dividend received deductions, partially offset by state income taxes, net of federal benefit.
−Removed: 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.
−Removed: Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $ 30 million, net of federal benefit, which will expire beginning December 31, 2023 and foreign net operating losses of $ 35 million.
+Added: 2022, the Company reacquired 0.3 million shares and 0.3 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $ 109 million and $ 87 million, respectively.
+Added: During the nine months ended September 30, 2023 and 2022, the Company reissued 0.6 million and 0.7 million, respectively, treasury shares for restricted stock award grants, performance share units and issuance of shares vested under advisor deferred compensation plans.
+Added: The Company’s effective tax rate was 21.8 % and 20.5 % for the three months ended September 30, 2023 and 2022, respectively.
+Added: The Company’s effective tax rate was 20.5 % and 19.7 % for the nine months ended September 30, 2023 and 2022, respectively.
+Added: The effective tax rate for the three months ended September 30, 2023 was higher than the statutory rate as a result of state income taxes, net of federal benefit.
+Added: The effective tax rate for the nine months ended September 30, 2023 was lower than the statutory rate as a result of tax preferred items including incentive compensation, partially offset by state income taxes, net of federal benefit.
+Added: The effective tax rate for the three months ended September 30, 2022 was lower than the statutory rate as a result of tax preferred items, partially offset by state income taxes, net of federal benefit.
+Added: The effective tax rate for the nine months ended September 30, 2022 was lower than the statutory rate as a result of tax preferred items including incentive compensation, partially offset by state income taxes, net of federal benefit.
+Added: Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $ 30 million, net of federal benefit, which will expire beginning December 31, 2023 and foreign net operating losses of $ 37 million, which do not expire.
The Company is required to establish a valuation allowance for any portion of its deferred tax assets that management believes will not be realized.
6 unchanged sentences
and (iv) tax planning strategies.
−Removed: Based on analysis of the Company’s tax position as of June 30, 2023, management believes it is more likely than not that the Company will not realize certain state net operating losses of $ 29 million, state deferred tax assets of $ 2 million and foreign net operating losses of $ 35 million;
+Added: Based on analysis of the Company’s tax position as of September 30, 2023, management believes it is more likely than not that the Company will not realize certain state net operating losses of $ 29 million and state deferred tax assets of $ 2 million, net of federal benefit, and foreign net operating losses of $ 37 million;
therefore, a valuation allowance has been established.
−Removed: The valuation allowance was $ 66 million and $ 65 million as of June 30, 2023 and December 31, 2022, respectively.
−Removed: As of June 30, 2023 and December 31, 2022, the Company had $ 132 million and $ 138 million, respectively, of gross unrecognized tax benefits.
−Removed: If recognized, approximately $ 105 million and $ 106 million, net of federal tax benefits, of unrecognized tax benefits as of June 30, 2023 and December 31, 2022, respectively, would affect the effective tax rate.
+Added: The valuation allowance was $ 68 million and $ 65 million as of September 30, 2023 and December 31, 2022, respectively.
+Added: As of September 30, 2023 and December 31, 2022, the Company had $ 137 million and $ 138 million, respectively, of gross unrecognized tax benefits.
+Added: If recognized, approximately $ 109 million and $ 106 million, net of federal tax benefits, of unrecognized tax benefits as of September 30, 2023 and December 31, 2022, respectively, would affect the effective tax rate.
During the second quarter of 2023, the Company had additions to its gross unrecognized tax benefits for tax positions of prior years of $ 71 million and reductions to its gross unrecognized tax benefits of prior years of $ 80 million.
2 unchanged sentences
The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision.
−Removed: The Company recognized a net increase of $ 7 million and $ 8 million in interest and penalties for the three and six months ended June 30, 2023, respectively.
−Removed: 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.
−Removed: As of June 30, 2023 and December 31, 2022, the Company had a payable of $ 22 million and $ 14 million, respectively, related to accrued interest and penalties.
+Added: The Company recognized a net increase of $ 2 million and $ 10 million in interest and penalties for the three and nine months ended September 30, 2023, respectively.
+Added: 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.
+Added: As of September 30, 2023 and December 31, 2022, the Company had a payable of $ 24 million and $ 14 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.
6 unchanged sentences
The Company’s state income tax returns are currently under examination by various jurisdictions for years ranging from 2017 through 2021.
−Removed: The Company expects to be an applicable corporation required to compute corporate alternative minimum tax (“CAMT”);
+Added: The Company is an applicable corporation required to compute corporate alternative minimum tax (“CAMT”);
however, based on current estimates the Company does not expect to be liable for the CAMT in 2023 and therefore a liability has not been recorded.
11 unchanged sentences
The Company typically has numerous pending matters which include information requests, exams or inquiries regarding certain subjects, including from time to time:
−Removed: sales and distribution of mutual and other pooled funds, exchange traded funds, private funds, segregated accounts, annuities, equity and fixed income securities, real estate investment trusts, insurance products, banking products and financial advice offerings, including managed accounts;
+Added: sales and distribution of, and disclosure practices related to, mutual and other pooled funds, exchange traded funds, private funds, segregated accounts, annuities, equity and fixed income securities, real estate investment trusts, insurance products, banking products and financial advice offerings, including managed accounts;
wholesaler activity;
5 unchanged sentences
and transaction monitoring systems and controls.
−Removed: The Company has cooperated and will continue to cooperate with the applicable regulators.
+Added: The Company is cooperating with the applicable regulators.
+Added: In connection with one such matter, the Company has been responding to SEC document and information requests regarding the preservation of certain business-related communications sent on electronic messaging platforms that have not been approved by the Company.
+Added: The Company has engaged in certain resolution discussions regarding this matter and, in the third quarter of 2023, recorded a $ 20 million accrual within our introducing broker dealer subsidiary, but there is no assurance that these discussions will lead to a resolution.
These pending matters are subject to uncertainties and, as such, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to reasonably estimate the amount of any loss that may result from such matters.
7 unchanged sentences
Once the Company establishes an accrued liability with respect to a loss contingency, the Company continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established, and any appropriate adjustments are made each quarter.
+Added: AMERIPRISE FINANCIAL, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Guaranty Fund Assessments
5 unchanged sentences
The Company has a liability for estimated guaranty fund assessments and a related premium tax asset.
−Removed: As of June 30, 2023 and December 31, 2022, the estimated liability was $ 37 million and $ 12 million, respectively.
−Removed: As of June 30, 2023 and December 31, 2022, the related premium tax asset was $ 31 million and $ 10 million, respectively.
+Added: As of September 30, 2023 and December 31, 2022, the estimated liability was $ 37 million and $ 12 million, respectively.
+Added: As of September 30, 2023 and December 31, 2022, the related premium tax asset was $ 31 million and $ 10 million, respectively.
The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Earnings per Share
The computations of basic and diluted earnings per share were as follows:
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
(in millions, except per share amounts)
6 unchanged sentences
Diluted $ 8.14 $ 9.41 $ 20.08 $ 21.85
−Removed: The calculation of diluted earnings per share excludes the incremental effect of nil options for both the three months ended June 30, 2023 and 2022, and 0.2 million options for both the six months ended June 30, 2023 and 2022, due to their anti-dilutive effect.
+Added: The calculation of diluted earnings per share excludes the incremental effect of nil options for both the three months ended September 30, 2023 and 2022, and 0.2 million options for both the nine months ended September 30, 2023 and 2022, due to their anti-dilutive effect.
Segment Information
9 unchanged sentences
the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and reinsurance accrual;
−Removed: mean reversion related impacts (the impact on VUL products for the difference between assumed and updated separate account investment performance on the reinsurance accrual and additional insurance benefit reserves);
+Added: mean reversion related impacts (the impact on VUL products for the difference between
+Added: AMERIPRISE FINANCIAL, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
+Added: assumed and updated separate account investment performance on the reinsurance accrual and additional insurance benefit reserves);
the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments;
7 unchanged sentences
Amortization of DAC, DSIC and unearned revenue for long-duration contracts are no longer impacted by markets and are now amortized on a constant-level basis.
−Removed: AMERIPRISE FINANCIAL, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The following tables summarize selected financial information by segment and reconcile segment totals to those reported on the consolidated financial statements:
−Removed: June 30, 2023 December 31, 2022
+Added: September 30, 2023 December 31, 2022
(in millions)
5 unchanged sentences
Total assets $ 165,136 $ 158,852
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
2023 2022 2023 2022
13 unchanged sentences
Net realized investment gains (losses)
+Added: ( 38 ) ( 88 ) ( 32 ) ( 86 )
Market impact on non-traditional long-duration products 3 ( 1 ) 4 2
2 unchanged sentences
Total net revenues per consolidated statements of operations $ 3,925 $ 3,484 $ 11,543 $ 10,595
−Removed: (1) Represents the elimination of intersegment revenues recognized for the three months ended June 30, 2023 and 2022 in each segment as follows:
+Added: (1) Represents the elimination of intersegment revenues recognized for the three months ended September 30, 2023 and 2022 in each segment as follows:
Advice & Wealth Management ($ 217 million and $ 202 million, respectively);
1 unchanged sentence
Retirement & Protection Solutions ($ 104 million and $ 101 million, respectively);
−Removed: and Corporate & Other ($( 3 ) million and nil , respectively).
−Removed: (2) Represents the elimination of intersegment revenues recognized for the six months ended June 30, 2023 and 2022 in each segment as follows:
+Added: and Corporate & Other ($( 5 ) million and $( 1 ) million, respectively).
+Added: (2) Represents the elimination of intersegment revenues recognized for the nine months ended September 30, 2023 and 2022 in each segment as follows:
Advice & Wealth Management ($ 629 million and $ 651 million, respectively);
1 unchanged sentence
Retirement & Protection Solutions ($ 310 million and $ 318 million, respectively);
−Removed: and Corporate & Other ($( 7 ) million and nil , respectively).
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
+Added: and Corporate & Other ($( 12 ) million and $( 1 ) million, respectively).
+Added: AMERIPRISE FINANCIAL, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
2023 2022 2023 2022
16 unchanged sentences
Net income (loss) attributable to consolidated investment entities
+Added: — ( 3 ) — ( 2 )
Pretax income per consolidated statements of operations $ 1,117 $ 1,335 $ 2,740 $ 3,114
1 unchanged sentence
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.