What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2023-11-02 compared with 2023-08-08 · 302 added, 249 removed, 772 unchanged (42% of the section changed)

5 unchanged sentences

Ameriprise Financial is a diversified financial services company with a more than 125-year history of providing financial solutions.

We are a long-standing leader in financial planning and advice with $1.3 trillion in assets under management and administration as of June 30, 2023.

We are a long-standing leader in financial planning and advice with $1.2 trillion in assets under management and administration as of September 30, 2023.

We offer a broad range of products and services designed to achieve individual and institutional clients’ financial objectives.

3 unchanged sentences

We operate our business in the broader context of the macroeconomic forces around us, including the global and U.S.

economies, the coronavirus disease 2019 (“COVID-19”) pandemic, changes in interest and inflation rates, financial market volatility, fluctuations in foreign exchange rates, geopolitical strain, the competitive environment, client and customer activities and preferences, and the various regulatory and legislative developments.

economies, changes in interest and inflation rates, financial market volatility, fluctuations in foreign exchange rates, geopolitical strain, pandemics, the competitive environment, client and customer activities and preferences, and the various regulatory and legislative developments.

Financial markets and macroeconomic conditions have had and will continue to have a significant impact on our operating and performance results.

7 unchanged sentences

“Quantitative and Qualitative Disclosures About Market Risk.”

On July 13, 2023, we announced that we have withdrawn our application to convert Ameriprise Bank, FSB (“Ameriprise Bank”) to a state-chartered industrial bank and our application to establish a new limited purpose national trust bank.

In the third quarter, we updated our market-related assumptions and implemented model changes related to our living benefit valuation.

In addition, we conducted our annual review of life insurance, annuity and long term care (“LTC”) valuation assumptions relative to current experience and management expectations including modeling changes.

These aforementioned changes are collectively referred to as unlocking.

See our Consolidated and Segment Results of Operations sections for the pretax impacts on our revenues and expenses attributable to unlocking.

On July 13, 2023, we announced that we withdrew our application to convert Ameriprise Bank, FSB (“Ameriprise Bank”) to a state-chartered industrial bank and our 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.

7 unchanged sentences

We include the fees from these entities in the Management and financial advice fees line within our Asset Management segment.

AMERIPRISE FINANCIAL, INC.

While our consolidated financial statements are prepared in accordance with U.S.

1 unchanged sentence

the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and universal life (“UL”) insurance contracts), net of hedges and the reinsurance accrual;

mean reversion related impacts (the impact on variable universal life (“VUL”) products for the difference between assumed and updated separate account investment

AMERIPRISE FINANCIAL, INC.

performance on the reinsurance accrual and additional insurance benefit reserves);

mean reversion related impacts (the impact on variable universal life (“VUL”) products for the difference between 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;

23 unchanged sentences

• Adjusted operating return on equity of over 30%.

AMERIPRISE FINANCIAL, INC.

The following tables reconcile our GAAP measures to adjusted operating measures:

Per Diluted Share

Three Months Ended June 30,

Three Months Ended September 30,

(in millions, except per share amounts)

17 unchanged sentences

Diluted 107.1 112.7

AMERIPRISE FINANCIAL, INC.

Per Diluted Share

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions, except per share amounts)

17 unchanged sentences

(2) Calculated using the statutory federal tax rate of 21%.

AMERIPRISE FINANCIAL, INC.

The following table reconciles the trailing twelve months’ sum of net income to adjusted operating earnings and the five-point average of quarter-end equity to adjusted operating equity:

Twelve Months Ended June 30,

Twelve Months Ended September 30,

(in millions)

27 unchanged sentences

After-tax is calculated using the statutory tax rate of 21%.

AMERIPRISE FINANCIAL, INC.

The following table reconciles GAAP total equity to Available Capital for Capital Adequacy:

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

(in millions)

21 unchanged sentences

Changes to these assumptions do not occur in isolation and it is impracticable to predict such impacts at the individual security unit of measure which are predominately Level 2 fair value and based on observable inputs.

AMERIPRISE FINANCIAL, INC.

Market Risk Benefits

1 unchanged sentence

Market risk benefits include certain contract features on variable annuity products that provide minimum guarantees to policyholders.

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”).

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”).

Variable Annuities

2 unchanged sentences

The business is predominately issued through the Ameriprise Financial ® advisor network.

The majority of the variable annuity contracts offered by us contain GMDB provisions.

The majority of the variable annuity contracts currently offered by us contain GMDB provisions.

We discontinued most new sales of GMWB and GMAB at the end of 2021 and new sales were completely discontinued as of mid-2022.

1 unchanged sentence

See Note 11 to our Consolidated Financial Statements for further discussion of our variable annuity contracts.

In determining the liabilities for market risk benefits, we project these benefits and contract assessments using actuarial models to simulate various equity market scenarios.

In determining the assets or liabilities for market risk benefits, we project these benefits and contract assessments using actuarial models to simulate various equity market scenarios.

Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency, benefit utilization and investment margins.

7 unchanged sentences

The change in fair value due to changes in our nonperformance risk is recorded in other comprehensive income.

AMERIPRISE FINANCIAL, INC.

Regarding the exposure to variable annuity living benefit guarantees, the source of behavioral risk is driven by changes in policyholder surrenders and utilization of guaranteed withdrawal benefits.

Regarding the exposure to variable annuity living benefit guarantees, changes to reserves due to behavioral risk are driven by changes in policyholder surrenders and utilization of guaranteed withdrawal benefits.

We have extensive experience studies and analysis to monitor changes and trends in policyholder behavior.

2 unchanged sentences

Experience data includes detailed policy information providing the opportunity to review impacts of multiple variables.

The ability to analyze differences in experience, such as presence of a living benefit rider, existence of surrender charges, and tax qualifications provide us an effective approach in quickly detecting changes in policyholder behavior.

At least annually, we perform a thorough policyholder behavior analysis to validate the assumptions included in our market risk benefit reserves.

The variable annuity assumptions and resulting reserve computations reflect multiple policyholder variables.

Differentiation in assumptions by policyholder age, existence of surrender charges, guaranteed withdrawal utilization, and tax qualification are examples of factors recognized in establishing management’s assumptions used in reserve calculations.

The extensive data derived from our variable annuity block informs management in confirming previous assumptions and revising the variable annuity behavior assumptions.

4 unchanged sentences

Non-traditional long-duration products include variable and structured variable annuity contracts, fixed annuity contracts and UL and VUL policies.

Traditional long-duration products include term life insurance, whole life insurance, disability income (“DI”) and long term care (“LTC”) insurance and life contingent payout annuity products.

Traditional long-duration products include term life insurance, whole life insurance, disability income (“DI”) and LTC insurance and life contingent payout annuity products.

UL and VUL policies with product features that result in profits followed by losses are accounted for as insurance liabilities.

The portion of structured variable annuities, indexed annuities and indexed universal life (“IUL”) policies allocated to the indexed account is accounted for as an embedded derivative.

The establishment of reserves is an estimation process using a variety of methods, assumptions and data elements.

3 unchanged sentences

A portion of our UL and VUL policies have product features that result in profits followed by losses from the insurance component of the contract.

These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract.

These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the

AMERIPRISE FINANCIAL, INC.

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

18 unchanged sentences

The net premium ratio reflects cash flows from contract inception to contract termination (i.e., through the claim paying period) and cannot exceed 100%.

AMERIPRISE FINANCIAL, INC.

The liability for future policy benefits will be updated for actual experience at least on an annual basis and concurrent with changes to cash flow assumptions.

13 unchanged sentences

For information regarding recent accounting pronouncements and their expected impact on our future consolidated results of operations and financial condition, see Note 3 to our Consolidated Financial Statements.

AMERIPRISE FINANCIAL, INC.

Economic Environment

1 unchanged sentence

The following table presents relevant market indices:

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Daily average 4,456 3,983 12% 4,222 4,185 1%

16 unchanged sentences

AUM and AUA do not include assets under advisement, for which we provide advisory services such as model portfolios but do not have full discretionary investment authority.

AMERIPRISE FINANCIAL, INC.

The following table presents detail regarding our AUM and AUA:

September 30,

(in billions)

7 unchanged sentences

Total AUM and AUA $ 1,232.8 $ 1,101.5 $ 131.3 12 %

Total AUM increased $71.6 billion, or 7%, to $1.0 trillion as of June 30, 2023 compared to $957.2 billion as of June 30, 2022 due to a $54.9 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $18.4 billion increase in Asset Management AUM primarily driven by equity market appreciation, partially offset by net outflows and fixed income market depreciation.

Total AUM increased $96.9 billion, or 11%, to $990.4 billion as of September 30, 2023 compared to $893.5 billion as of September 30, 2022 due to a $58.3 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $40.7 billion increase in Asset Management AUM primarily driven by equity market appreciation, partially offset by net outflows.

See our segment results of operations discussion below for additional information on changes in our AUM.

AMERIPRISE FINANCIAL, INC.

Consolidated Results of Operations for the Three Months Ended June 30, 2023 and 2022

Consolidated Results of Operations for the Three Months Ended September 30, 2023 and 2022

The following table presents our consolidated results of operations:

Three Months Ended June 30,

Three Months Ended September 30,

(in millions)

9 unchanged sentences

Interest credited to fixed accounts 139 157 (18) (11)

Benefits, claims, losses and settlement expenses 327 (196) 523 NM

Benefits, claims, losses and settlement expenses 120 81 39 48

Remeasurement (gains) losses of future policy benefit reserves (12) (1) (11) NM

8 unchanged sentences

NM Not Meaningful.

Pretax income increased $354 million, or 46%, for the three months ended June 30, 2023 compared to the prior year period.

Pretax income decreased $218 million, or 16%, for the three months ended September 30, 2023 compared to the prior year period.

The following impacts were significant drivers of the period-over-period change in pretax income:

• A favorable impact from the recent trend in rising interest rates on the investment portfolio yield, including from investment portfolio repositioning in our insurance business in the fourth quarter of 2022, along with higher balances in bank and certificate products.

• The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was a benefit of $127 million for the three months ended June 30, 2023 compared to an expense of $19 million for the prior year period.

• An unfavorable impact from the cumulative impact of Asset Management net outflows.

Management and financial advice fees decreased $78 million, or 3%, for the three months ended June 30, 2023 compared to the prior year period reflecting fixed income market depreciation and the cumulative impact of Asset Management outflows, partially offset by wrap account net inflows.

Distribution fees increased $23 million, or 5%, for the three months ended June 30, 2023 compared to the prior year period primarily due to higher fees on off-balance sheet brokerage cash due to an increase in short-term interest rates.

Net investment income increased $524 million, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the following items:

• The favorable impact of growth in Ameriprise Bank customer deposits and certificate business as a result of the market environment and our strategic decision to invest in these businesses.

• The favorable impact of the recent trend in rising interest rates on the investment portfolio yield, including from investment portfolio repositioning in our insurance business in the fourth quarter of 2022.

• The unfavorable impact of unlocking was $99 million for the three months ended September 30, 2023 compared to a favorable impact of $133 million for the prior year period.

• The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was a benefit of $211 million for the three months ended September 30, 2023 compared to a benefit of $405 million for the prior year period.

• A favorable impact from the trend in rising interest rates on the investment portfolio yield, including from investment portfolio repositioning in our insurance business in the fourth quarter of 2022, along with higher balances in bank and certificate products.

• A favorable impact from higher average equity markets compared to the prior year period.

Our average WEI, which is a proxy for equity movements on AUM, increased 11% in the three months ended September 30, 2023 compared to the prior year period.

The ending WEI increased 19% compared to the prior year.

The average S&P 500 index was 12% higher in the quarter compared to the prior year period.

AMERIPRISE FINANCIAL, INC.

• The favorable impact of net realized investment gains of $6 million for the three months ended June 30, 2023 compared to net realized investment losses of $15 million for the prior year period.

Net realized investment losses for three months ended June 30, 2022 were primarily driven by the fixed maturity investment portfolio repositioning in response to market conditions.

The following table presents the total pretax impacts on our revenues and expenses attributable to unlocking for the three months ended September 30:

Pretax Increase (Decrease) 2023

(in millions)

Premiums, policy and contract charges $ 1 $ (1)

Total revenues 1 (1)

Benefits, claims, losses and settlement expenses (17) 7

Remeasurement (gains) losses of future policy benefit reserves:

LTC unlocking (5) (6)

Unlocking impact, excluding LTC (6) 6

Total remeasurement (gains) losses of future policy benefit reserves (11) —

Change in fair value of market risk benefits 128 (139)

Amortization of DAC — (2)

Total expenses

Pretax income (loss) (1)

(1) Includes a $2 million net expense related to the market impact on IUL benefits for the three months ended September 30, 2022, which is excluded from adjusted operating earnings.

Refer to Results of Operations by Segment for the impact to pretax adjusted operating earnings attributable to unlocking.

The primary drivers of the year-over-year unlocking impact include the following items:

• We lowered our surrender assumptions on variable annuities with living benefits resulting in an expense in the third quarter of 2023.

• Interest rate assumptions resulted in a benefit in the third quarter of 2022, partially offset by lower surrender assumptions and updated mortality assumptions for variable annuities with living benefits.

Management and financial advice fees increased $115 million, or 5%, for the three months ended September 30, 2023 compared to the prior year period reflecting market appreciation and wrap account net inflows, partially offset by the cumulative impact of Asset Management net outflows.

Distribution fees decreased $43 million, or 8%, for the three months ended September 30, 2023 compared to the prior year period primarily due to lower fees on off-balance sheet brokerage cash due to lower off-balance sheet brokerage cash balances.

Net investment income increased $460 million, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the following items:

• The favorable impact of growth in Ameriprise Bank customer deposits and certificate business as a result of the market environment and our strategic decision to invest in these businesses.

• The favorable impact of the trend in rising interest rates on the investment portfolio yield, including from investment portfolio repositioning in our insurance business in the fourth quarter of 2022.

• The favorable impact of net realized investment losses of $37 million for the three months ended September 30, 2023 compared to net realized investment losses of $87 million for the prior year period.

Net realized investment losses for three months ended September 30, 2023 were primarily driven by the continued fixed maturity investment portfolio repositioning.

Net realized investment losses for three months ended September 30, 2022 were primarily driven by the fixed maturity investment portfolio repositioning in response to market conditions.

• The favorable impact of higher net investment income of CIEs.

Premiums, policy and contract charges increased $41 million, or 12%, for the three months ended June 30, 2023 compared to the prior year period primarily due to higher sales of life contingent payout annuities.

Banking and deposit interest expense increased $128 million, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and Ameriprise Bank cash deposits.

Interest credited to fixed accounts increased $16 million, or 11%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the following items:

• A $54 million increase in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits.

The unfavorable impact of the nonperformance credit spread was $22 million for the three months ended June 30, 2023 compared to a favorable impact of $32 million for the prior year period.

• A $38 million decrease in expense from other market impacts on IUL benefits, net of hedges, which was a benefit of $15 million for the three months ended June 30, 2023 compared to an expense of $23 million for the prior year period.

The decrease in expense was primarily due to an increase in the IUL embedded derivative in the prior period, which reflected higher option costs due to a higher new money rate, partially offset by less discounting due to higher Treasury rates.

Benefits, claims, losses and settlement expenses increased $523 million, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the following items:

• A $422 million increase in expense from market impacts on structured variable annuities (“SVA”) embedded derivative, net of hedges in place to offset those risks.

This increase was the result of a favorable $632 million change in the market impact on derivatives hedging the SVA embedded derivative and an unfavorable $1.1 billion change in the market impact on SVA embedded derivative.

The main market driver contributing to these changes was the equity market impact on the SVA embedded derivative net of the impact on the corresponding hedge assets resulted in an expense for the three months ended June 30, 2023 compared to a benefit in the prior year period.

• The impact of higher sales of life contingent payout annuities.

• The impact of increased volume in SVAs.

Change in fair value of market risk benefits decreased $618 million, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the following item:

• A $611 million decrease in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks.

This decrease was the result of a favorable $1.5 billion change in the market impact on variable annuity guaranteed benefits reserves, partially offset by an unfavorable $865 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits.

The main market drivers contributing to these changes are summarized below:

• Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the three months ended June 30, 2023 compared to an expense for the prior year period.

• Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower benefit for the three months ended June 30, 2023 compared to the prior year period.

• Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the three months ended June 30, 2023 compared to the prior year period.

• Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a lower net expense for the three months ended June 30, 2023 compared to the prior year period.

Interest and debt expense increased $40 million, or 91%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting higher interest expense of CIEs and the issuance of $750 million of unsecured senior notes in March 2023.

General and administrative expense increased $73 million, or 8%, for the three months ended June 30, 2023 compared to the prior year period primarily due to higher volume related expenses and investments for business growth, $11 million of higher integration related expenses and an unfavorable change in the mark-to-market impact on share-based compensation.

A portion of the higher integration related expenses was driven by the consolidation of the majority of our London-based teams into a single location following the acquisition of the BMO Global Asset Management (EMEA) business.

Premiums, policy and contract charges increased $36 million, or 10%, for the three months ended September 30, 2023 compared to the prior year period primarily due to higher sales of life contingent payout annuities.

Banking and deposit interest expense increased $136 million, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and Ameriprise Bank cash deposits.

Distribution expenses increased $99 million, or 8%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting higher market appreciation.

AMERIPRISE FINANCIAL, INC.

Our effective tax rate was 21.1% for the three months ended June 30, 2023 compared to 20.6% for the prior year period.

Interest credited to fixed accounts decreased $18 million, or 11%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the following items:

• A $4 million decrease in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits.

The unfavorable impact of the nonperformance credit spread was $2 million for the three months ended September 30, 2023 compared to an unfavorable impact of $6 million for the prior year period.

• A $9 million decrease in expense from other market impacts on IUL benefits, net of hedges, which was a benefit of $15 million for the three months ended September 30, 2023 compared to a benefit of $6 million for the prior year period.

The decrease in expense was primarily due to a decrease in the IUL embedded derivative in the current period, which reflected higher option costs due to a higher new money rate, offset by more discounting due to higher Treasury rates.

Benefits, claims, losses and settlement expenses increased $39 million, or 48%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the impact of higher sales of life contingent payout annuities.

Change in fair value of market risk benefits increased $489 million, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the following items:

• The impact of unlocking was an expense of $128 million for three months ended September 30, 2023 primarily reflecting the impact of lower surrender assumptions on variable annuities with living benefits compared to a benefit of $139 million for the prior year period primarily reflecting the impact of interest rate assumptions, partially offset by lower surrender assumptions and updated mortality assumptions for variable annuities with living benefits.

• A $178 million increase in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks.

This increase was the result of an unfavorable $495 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits, partially offset by a favorable $317 million change in the market impact on variable annuity guaranteed benefits reserves.

The main market drivers contributing to these changes are summarized below:

• Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the three months ended September 30, 2023 compared to the prior year period.

• Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a higher net expense for the three months ended September 30, 2023 compared to the prior year period.

Interest and debt expense increased $32 million, or 62%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting higher interest expense of CIEs and the issuance of $750 million of unsecured senior notes in March 2023.

General and administrative expense increased $25 million, or 3%, for the three months ended September 30, 2023 compared to the prior year period primarily due to a $20 million accrual for a regulatory matter relating to electronic communication recordkeeping requirements, higher volume related expenses and investments for business growth.

Our effective tax rate was 21.8% for the three months ended September 30, 2023 compared to 20.5% for the prior year period.

See Note 17 to our Consolidated Financial Statements for additional discussion on income taxes.

Results of Operations by Segment for the Three Months Ended June 30, 2023 and 2022

Results of Operations by Segment for the Three Months Ended September 30, 2023 and 2022

Adjusted operating earnings is the measure of segment profit or loss management uses to evaluate segment performance.

2 unchanged sentences

See Note 20 to the Consolidated Financial Statements for further information on the presentation of segment results and our definition of adjusted operating earnings.

AMERIPRISE FINANCIAL, INC.

The following table presents summary financial information by segment:

Three Months Ended June 30,

Three Months Ended September 30,

(in millions)

15 unchanged sentences

Adjusted operating loss $ (72) $ (78)

The following table presents the segment pretax adjusted operating impacts on our revenues and expenses attributable to unlocking for the three months ended September 30:

Segment Pretax Operating Increase (Decrease) 2023

Retirement & Protection Solutions Corporate Retirement & Protection Solutions Corporate

(in millions)

Premiums, policy and contract charges $ 1 $ — $ 1 $ (2)

Total revenues 1 — 1 (2)

Benefits, claims, losses and settlement expenses

Remeasurement (gains) losses of future policy benefit reserves:

LTC unlocking — (5) — (6)

Unlocking impact, excluding LTC (6) — 6 —

Total remeasurement (gains) losses of future policy benefit reserves (6) (5) 6 (6)

Change in fair value of market risk benefits 128 — (139) —

Amortization of DAC

Total expenses

105 (5) (127) (9)

Pretax income (loss) $ (104) $ 5 $ 128 $ 7

AMERIPRISE FINANCIAL, INC.

Advice & Wealth Management

The following table presents the changes in wrap account assets and average balances for the three months ended June 30:

The following table presents the changes in wrap account assets and average balances for the three months ended September 30:

(in billions)

9 unchanged sentences

Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.

(2) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period excluding the most recent month for the three months ended June 30, 2023 and 2022.

Ending wrap account assets increased $20.0 billion, or 5%, to $454.7 billion during the three months ended June 30, 2023 due to market appreciation of $14.3 billion and net inflows of $5.7 billion.

Average advisory wrap account assets increased $6.3 billion, or 1%, compared to the prior year period primarily reflecting net inflows.

AMERIPRISE FINANCIAL, INC.

Ending wrap account assets decreased $10.6 billion, or 2%, to $444.1 billion during the three months ended September 30, 2023 due to market depreciation of $16.0 billion, partially offset by net inflows of $5.4 billion.

Average advisory wrap account assets increased $47.6 billion, or 12%, compared to the prior year period primarily reflecting market appreciation and net inflows.

The following table presents the results of operations of our Advice & Wealth Management segment on an adjusted operating basis:

Three Months Ended June 30,

Three Months Ended September 30,

(in millions)

12 unchanged sentences

NM Not Meaningful.

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $239 million, or 49%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting a benefit from higher short-term interest rates and growth in investments supporting the bank cash deposits and certificate products along with higher average wrap account balances due to net inflows.

Pretax adjusted operating margin increased to 31.2% for the three months ended June 30, 2023 compared to 23.9% for the prior year period, reflecting the benefit of higher short-term interest rates.

Ameriprise Bank is continuing its deposit growth trend, with cash sweep balances increasing $5.4 billion from the prior year period to $20.9 billion as of June 30, 2023.

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $134 million, or 23%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting a benefit from higher short-term interest rates and growth in investments supporting the bank cash deposits and certificate products along with higher average wrap account balances due to market appreciation and net inflows.

Pretax adjusted operating margin increased to 30.3% for the three months ended September 30, 2023 compared to 27.8% for the prior year period, reflecting the benefit of higher short-term interest rates.

Ameriprise Bank is continuing its deposit growth trend, with bank deposits balances increasing $2.4 billion from the prior year period to $21.0 billion as of September 30, 2023.

Profitability at the bank increased compared to the prior year period primarily reflecting increased interest rates along with the trend in deposit growth.

The Ameriprise Certificate Company experienced strong growth in the current interest rate environment with client deposits increasing $6.4 billion from the prior year period to $12.6 billion.

Management and financial advice fees increased $14 million, or 1%, for the three months ended June 30, 2023 compared to the prior year period primarily due to growth in average wrap account assets.

Average advisory wrap account assets increased $6.3 billion, or 1%, compared to the prior year period primarily reflecting net inflows.

Distribution fees increased $27 million, or 5%, for the three months ended June 30, 2023 compared to the prior year period reflecting higher fees on off-balance sheet brokerage cash due to an increase in short-term interest rates.

Net investment income, which excludes net realized investment gains or losses, increased $363 million, for the three months ended June 30, 2023 compared to the prior year period primarily due to higher average invested assets due to growth in bank cash deposits and certificate products and the favorable impact of increasing short-term interest rates, including higher investment yields on the investment portfolios supporting the products.

Banking and deposit interest expense increased $128 million, for the three months ended June 30, 2023 compared to the prior year period primarily due to higher average crediting rates and higher average volumes on certificates and bank cash deposits.

General and administrative expense increased $34 million, or 9%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting higher volume related expenses and investing for business growth.

AMERIPRISE FINANCIAL, INC.

Management and financial advice fees increased $127 million, or 10%, for the three months ended September 30, 2023 compared to the prior year period primarily due to growth in average wrap account assets.

Average advisory wrap account assets increased $47.6 billion, or 12%, compared to the prior year period primarily reflecting market appreciation and net inflows.

Distribution fees decreased $27 million, or 5%, for the three months ended September 30, 2023 compared to the prior year period reflecting lower fees on off-balance sheet brokerage cash due to lower off-balance sheet brokerage cash balances.

Net investment income, which excludes net realized investment gains or losses, increased $298 million, for the three months ended September 30, 2023 compared to the prior year period primarily due to higher average invested assets due to growth in bank cash deposits and certificate products and the favorable impact of increasing short-term interest rates, including higher investment yields on the investment portfolios supporting the products.

Banking and deposit interest expense increased $136 million, for the three months ended September 30, 2023 compared to the prior year period primarily due to higher average crediting rates and higher average volumes on certificates and bank cash deposits.

General and administrative expense increased $29 million, or 7%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting a $20 million accrual for a regulatory matter relating to electronic communication recordkeeping requirements, higher volume related expenses and investing for business growth.

Asset Management

The following tables present the mutual fund performance of our retail Columbia Threadneedle Investments funds as of June 30, 2023:

The following tables present the mutual fund performance of our retail Columbia Threadneedle Investments funds as of September 30, 2023:

Retail Fund Rankings in Top 2 Quartiles or Above Index Benchmark - Asset Weighted (1)

6 unchanged sentences

Number of rated funds 112 74 94 97

Percent of rated assets 64% 29% 54% 68%

(1) Retail Fund performance rankings for each fund are measured on a consistent basis against the most appropriate peer group or index.

11 unchanged sentences

The following table presents global managed assets by type:

As of June 30,

As of September 30,

Change Three Months Ended

September 30,

(in billions)

8 unchanged sentences

The following table presents the changes in global managed assets:

Three Months Ended June 30,

Three Months Ended September 30,

(in billions)

8 unchanged sentences

Distributions (1.5) (1.9)

Acquired assets (1)

Market appreciation (depreciation) and other (8.5) (15.3)

3 unchanged sentences

Beginning assets 289.2 275.2

(12.1) (13.4)

Net flows (0.3) 2.9

Acquired assets (1)

Market appreciation (depreciation) and other (3)

10 unchanged sentences

(4) Legacy insurance partners assets and net flows are included in the rollforwards above.

Total segment AUM increased $8.9 billion, or 1%, during the three months ended June 30, 2023 primarily due to equity market appreciation, partially offset by fixed income market depreciation and net outflows.

Net outflows were $5.3 billion in the second quarter of 2023, a $2.2 billion decrease compared to the prior year period.

Total segment AUM decreased $29.4 billion, or 5%, during the three months ended September 30, 2023 primarily due to equity and fixed income market depreciation, foreign exchange translation, and net outflows.

Net outflows were $4.2 billion in the third quarter of 2023, a $1.8 billion decrease compared to the prior year period.

AMERIPRISE FINANCIAL, INC.

The following table presents the results of operations of our Asset Management segment on an adjusted operating basis:

Three Months Ended June 30,

Three Months Ended September 30,

(in millions)

1 unchanged sentence

Distribution fees 92 96 (4) (4)

Net investment income 10 — 10 -

Net investment income 10 2 8 NM

Other revenues 7 2 5 NM

4 unchanged sentences

Amortization of deferred acquisition costs 1 2 (1) (50)

Interest and debt expense 1 1 — -

Interest and debt expense 2 1 1 NM

General and administrative expense 390 391 (1) —

2 unchanged sentences

NM Not Meaningful.

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, decreased $60 million, or 27%, for the three months ended June 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows and lower average fixed income markets, partially offset by equity market appreciation.

Management and financial advice fees decreased $78 million, or 10%, for the three months ended June 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows and lower average fixed income markets, partially offset by higher average equity markets.

Distribution fees decreased $10 million, or 10%, for the three months ended June 30, 2023 compared to the prior year period reflecting the cumulative impact from net outflows.

Net investment income increased $10 million, for the three months ended June 30, 2023 compared to the prior year period primarily driven by higher interest rates.

Distribution expenses decreased $19 million, or 8%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the cumulative impact from net outflows.

General and administrative expense increased $7 million, or 2%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the unfavorable change in the mark-to-market impact on share-based compensation expense.

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $8 million, or 4%, for the three months ended September 30, 2023 compared to the prior year period primarily due to equity market appreciation, partially offset by the cumulative impact from net outflows.

Management and financial advice fees decreased $6 million, or 1%, for the three months ended September 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows, partially offset by higher average equity markets.

Distribution fees decreased $4 million, or 4%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the cumulative impact from net outflows.

Net investment income increased $8 million, for the three months ended September 30, 2023 compared to the prior year period primarily driven by higher interest rates.

Distribution expenses decreased $4 million, or 2%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the cumulative impact from net outflows.

AMERIPRISE FINANCIAL, INC.

1 unchanged sentence

The following table presents the results of operations of our Retirement & Protection Solutions segment on an adjusted operating basis:

Three Months Ended June 30,

Three Months Ended September 30,

(in millions)

10 unchanged sentences

Benefits, claims, losses and settlement expenses 168 113 55 49

Remeasurement (gains) losses of future policy benefit reserves (4) (3) (1) (33)

Change in fair value of market risk benefits 123 129 (6) (5)

Remeasurement (gains) losses of future policy benefit reserves (10) 5 (15) NM

Change in fair value of market risk benefits 259 (11) 270 NM

Amortization of deferred acquisition costs 57 56 1 2

3 unchanged sentences

Adjusted operating earnings $ 100 $ 325 $ (225) (69) %

Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $21 million, or 13%, for the three months ended June 30, 2023 compared to prior year period.

Variable annuity account balances increased 4% to $78.5 billion as of June 30, 2023 compared to the prior year period due to market appreciation, partially offset by net outflows of $2.6 billion.

Variable annuity sales decreased 17% compared to the prior year period reflecting a decrease in sales of variable annuities with living benefit guarantees.

Account values with living benefit riders declined to 56% as of June 30, 2023 compared to 59% a year ago reflecting our actions to optimize our business mix.

NM Not Meaningful.

Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts decreased $225 million, or 69%, for the three months ended September 30, 2023 compared to prior year period due to the impact of unlocking.

Variable annuity account balances increased 5% to $75.1 billion as of September 30, 2023 compared to the prior year period due to market appreciation, partially offset by net outflows of $2.8 billion.

Variable annuity sales increased 18% compared to the prior year period reflecting an increase in sales of structured variable annuities.

Account values with living benefit riders declined to 55% as of September 30, 2023 compared to 58% a year ago reflecting our actions to optimize our business mix.

This trend is expected to continue and meaningfully shift the mix of business away from products with living benefit guarantees over time.

Management and financial advice fees decreased $12 million, or 6%, for the three months ended June 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows.

Distribution fees decreased $7 million, or 7%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the cumulative impact from net outflows.

Net investment income, which excludes net realized investment gains or losses, increased $79 million, or 64%, for the three months ended June 30, 2023 compared to the prior year period primarily due to higher interest rates, investment portfolio repositioning resulting in higher yields and increased SVA balances.

Premiums, policy and contract charges increased $40 million, or 12%, for the three months ended June 30, 2023 compared to the prior year period due to higher sales of life contingent payout annuities.

Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, increased $80 million, or 74%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the impact of higher sales of life contingent payout annuities and increased volume in SVAs.

Net investment income, which excludes net realized investment gains or losses, increased $64 million, or 42%, for the three months ended September 30, 2023 compared to the prior year period primarily due to higher interest rates, investment portfolio repositioning resulting in higher yields and increased structured variable annuities (“SVA”) balances.

Premiums, policy and contract charges increased $33 million, or 10%, for the three months ended September 30, 2023 compared to the prior year period due to higher sales of life contingent payout annuities.

Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, increased $55 million, or 49%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the impact of higher sales of life contingent payout annuities and increased volume in SVAs, partially offset by the favorable impact of unlocking.

Change in fair value of market risk benefits, which exclude the market impact on variable annuity guaranteed benefits (net of hedges), increased $270 million, for the three months ended September 30, 2023 compared to the prior year period reflecting the impact of

AMERIPRISE FINANCIAL, INC.

The unlocking impact for three months ended September 30, 2023 was an expense of $128 million primarily reflecting lower surrender assumptions on variable annuities with living benefits compared to a benefit of $139 million for the prior year period primarily reflecting the impact of interest rate assumptions, partially offset by lower surrender assumptions and updated mortality assumptions for variable annuities with living benefits.

Corporate & Other

The following table presents the results of operations of our Corporate & Other segment on an adjusted operating basis:

Three Months Ended June 30,

Three Months Ended September 30,

(in millions)

Net investment income $ 76 $ 39 $ 37 95 %

Distribution fees $ 1 $ — $ 1 — %

Net investment income 71 35 36 NM

Premiums, policy and contract charges 25 25 — —

1 unchanged sentence

Total revenues 149 117 32 27

Banking and deposit interest expense 3 — 3 -

Banking and deposit interest expense 6 2 4 NM

Total net revenues 143 115 28 24

8 unchanged sentences

Adjusted operating loss $ (72) $ (78) $ 6 8 %

NM Not Meaningful.

Our Corporate & Other segment includes our closed blocks of LTC insurance and fixed annuity and fixed indexed annuity (“FA”) business.

Our Corporate & Other segment pretax adjusted operating loss excludes net realized investment gains or losses, the market impact on fixed annuity benefits (net of hedges), the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impact, gain or loss on disposal of a business that is not considered discontinued operations, integration and restructuring charges, and the impact of consolidating CIEs.

Our Corporate & Other segment pretax adjusted operating loss increased $1 million for the three months ended June 30, 2023 compared to the prior year period.

LTC insurance had a pretax adjusted operating earnings of $1 million for the three months ended June 30, 2023 compared to pretax adjusted operating loss of $6 million for the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.

FA business had a pretax adjusted operating loss of $5 million for the three months ended June 30, 2023 compared to a pretax adjusted operating loss of $5 million for the prior year period.

Fixed deferred annuity account balances declined 10% to $6.7 billion as of June 30, 2023 compared to the prior year period as policies continue to lapse and we previously discontinued new sales of fixed deferred annuities.

Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impacts, integration and restructuring charges, and the impact of consolidating CIEs, increased $37 million, or 95%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions and a $12 million benefit in our affordable housing partnerships.

Interest and debt expense increased $14 million, or 93%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the issuance of $750 million of unsecured senior notes in March 2023.

General and administrative expense increased $19 million, or 46%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the unfavorable mark-to-market impact on share-based compensation expense.

Our Corporate & Other segment pretax adjusted operating loss decreased $6 million for the three months ended September 30, 2023 compared to the prior year period.

LTC insurance had a pretax adjusted operating earnings of $10 million for the three months ended September 30, 2023 compared to pretax adjusted operating earnings of nil for the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.

FA business had a pretax adjusted operating loss of $8 million for the three months ended September 30, 2023 compared to a pretax adjusted operating loss of $5 million for the prior year period.

Fixed deferred annuity account balances declined 11% to $6.5 billion as of September 30, 2023 compared to the prior year period as policies continue to lapse and we previously discontinued new sales of fixed deferred annuities.

Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impacts, integration and restructuring charges, and the impact of consolidating CIEs, increased $36 million for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions.

AMERIPRISE FINANCIAL, INC.

Consolidated Results of Operations for the Six Months Ended June 30, 2023 and 2022

Interest and debt expense increased $11 million, or 65%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the issuance of $750 million of unsecured senior notes in March 2023.

General and administrative expense increased $14 million, or 25%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting $7 million of severance expenses related to our expense management initiatives and are designed to improve operating efficiency and effectiveness.

Consolidated Results of Operations for the Nine Months Ended September 30, 2023 and 2022

The following table presents our consolidated results of operations:

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions)

10 unchanged sentences

Benefits, claims, losses and settlement expenses 748 (83) 831 NM

Remeasurement (gains) losses of future policy benefit reserves (5) (5) — -

Remeasurement (gains) losses of future policy benefit reserves (17) (6) (11) NM

Change in fair value of market risk benefits 558 298 260 87

8 unchanged sentences

NM Not Meaningful.

Pretax income decreased $156 million, or 9%, for the six months ended June 30, 2023 compared to the prior year period.

• The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was an expense of $348 million for the six months ended June 30, 2023 compared to a benefit of $161 million for the prior year period.

• A negative impact from lower average equity markets compared to the prior year period.

Our average WEI, which is a proxy for equity movements on AUM, decreased 4% in the six months ended June 30, 2023 compared to the prior year period.

The ending WEI increased 16% compared to the prior year.

The average S&P 500 index was 4% lower in the quarter compared to the prior year period.

• A $21 million unfavorable impact of lower asset management net performance fees.

Management and financial advice fees decreased $400 million, or 8%, for the six months ended June 30, 2023 compared to the prior year period reflecting market depreciation, the cumulative impact of Asset Management net outflows and a decrease in performance fees of $53 million, partially offset by continued wrap account net inflows.

Distribution fees increased $94 million, or 10%, for the six months ended June 30, 2023 compared to the prior year period due to $140 million of higher fees on off-balance sheet brokerage cash due to an increase in short-term interest rates, partially offset by market depreciation.

Pretax income decreased $374 million, or 12%, for the nine months ended September 30, 2023 compared to the prior year period.

• The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was an expense of $137 million for the nine months ended September 30, 2023 compared to a benefit of $566 million for the prior year period.

• The unfavorable impact of unlocking was $99 million for the nine months ended September 30, 2023 compared to a favorable impact of $133 million for the prior year period.

• An unfavorable impact from the cumulative impact of Asset Management net outflows.

See our Consolidated Results of Operations for the three months ended September 30, 2023 and 2022 for a table and discussion of total pretax impacts on our revenues and expenses attributable to unlocking.

AMERIPRISE FINANCIAL, INC.

Net investment income increased $961 million for the six months ended June 30, 2023 compared to the prior year period primarily reflecting:

Management and financial advice fees decreased $285 million, or 4%, for the nine months ended September 30, 2023 compared to the prior year period reflecting the cumulative impact of Asset Management net outflows, fixed income market depreciation and a decrease in performance fees of $47 million, partially offset by continued wrap account net inflows.

Distribution fees increased $51 million, or 4%, for the nine months ended September 30, 2023 compared to the prior year period due to $88 million of higher fees on off-balance sheet brokerage cash due to an increase in short-term interest rates, partially offset by the cumulative impact of net outflows.

Net investment income increased $1.4 billion for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting:

• The favorable impact of growth in Ameriprise Bank customer deposits and certificate business as a result of the market environment and our strategic decision to invest in these businesses.

• The favorable impact of higher net investment income of CIEs.

Premiums, policy and contract charges increased $65 million, or 10%, for the six months ended June 30, 2023 compared to the prior year period primarily due to higher sales of life contingent payout annuities.

Banking and deposit interest expense increased $229 million for the six months ended June 30, 2023 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and Ameriprise Bank cash deposits.

Distribution expenses decreased $65 million, or 3%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting the cumulative impact of net retail outflows in Asset Management and lower advisor compensation due to a decrease in average wrap account balances from market depreciation.

Interest credited to fixed accounts increased $39 million, or 14%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting the following items:

• The favorable impact of net realized investment losses of $27 million for the nine months ended September 30, 2023 compared to net realized investment losses of $82 million for the prior year period.

Net realized investment losses for nine months ended September 30, 2023 were primarily driven by the continued fixed maturity investment portfolio repositioning.

Net realized investment losses for nine months ended September 30, 2022 were primarily driven by the fixed maturity investment portfolio repositioning in response to market conditions.

Premiums, policy and contract charges increased $101 million, or 10%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to higher sales of life contingent payout annuities.

Banking and deposit interest expense increased $365 million for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and Ameriprise Bank cash deposits.

Interest credited to fixed accounts increased $21 million, or 5%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the following items:

• A $48 million increase in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits.

The favorable impact of the nonperformance credit spread was $8 million for the six months ended June 30, 2023 compared to a favorable impact of $60 million for the prior year period.

• A $4 million decrease in expense from other market impacts on IUL benefits, net of hedges, which was an expense of $31 million for the six months ended June 30, 2023 compared to an expense of $35 million for the prior year period.

The decrease in expense was primarily due to an increase in the IUL embedded derivative in the prior period, which reflected higher option costs due to a higher new money rate, offset by less discounting due to higher Treasury rates.

Benefits, claims, losses and settlement expenses increased $792 million, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting the following items:

The favorable impact of the nonperformance credit spread was $6 million for the nine months ended September 30, 2023 compared to a favorable impact of $54 million for the prior year period.

• A $13 million decrease in expense from other market impacts on IUL benefits, net of hedges, which was an expense of $16 million for the nine months ended September 30, 2023 compared to an expense of $29 million for the prior year period.

Benefits, claims, losses and settlement expenses increased $831 million, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the following items:

• A $643 million increase in expense from market impacts on SVA embedded derivative, net of hedges in place to offset those risks.

This increase was the result of a favorable $746 million change in the market impact on derivatives hedging the SVA embedded derivative and an unfavorable $1.4 billion change in the market impact on SVA embedded derivative.

The main market driver contributing to these changes was the equity market impact on the SVA embedded derivative net of the impact on the corresponding hedge assets resulted in an expense for the six months ended June 30, 2023 compared to a benefit in the prior year period.

The main market driver contributing to these changes was the equity market impact on the SVA embedded derivative net of the impact on the corresponding hedge assets resulted in an expense for the nine months ended September 30, 2023 compared to a benefit in the prior year period.

• The impact of higher sales of life contingent payout annuities.

• The impact of increased volume in SVAs.

Change in fair value of market risk benefits decreased $229 million, or 37%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting the following item:

Change in fair value of market risk benefits increased $260 million, or 87%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the following items:

• The impact of unlocking was an expense of $128 million for nine months ended September 30, 2023 primarily reflecting the impact of lower surrender assumptions on variable annuities with living benefits compared to a benefit of $139 million for the prior year period primarily reflecting the impact of interest rate assumptions, partially offset by lower surrender assumptions and updated mortality assumptions for variable annuities with living benefits.

• A $29 million decrease in expense from market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks.

This decrease was the result of a favorable $554 million change in the market impact on variable annuity guaranteed benefits reserves and an unfavorable $346 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits.

The main market drivers contributing to these changes are summarized below:

• Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the six months ended June 30, 2023 compared to an expense in the prior year period.

• Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in an expense for the six months ended June 30, 2023 compared to a benefit in the prior year period.

• Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the six months ended June 30, 2023 compared to the prior year period.

• Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a lower net expense for the six months ended June 30, 2023 compared to the prior year period.

Interest and debt expense increased $72 million, or 86%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting higher interest expense of CIEs and the issuance of $750 million of unsecured senior notes in March 2023.

This decrease was the result of a favorable $870 million change in the market impact on variable annuity guaranteed

AMERIPRISE FINANCIAL, INC.

General and administrative expense increased $63 million, or 3%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting higher volume related expenses and investments for business growth, $11 million of higher integration related expenses and an unfavorable change in the mark-to-market impact on share-based compensation.

benefits reserves and an unfavorable $841 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits.

The main market drivers contributing to these changes are summarized below:

• Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the nine months ended September 30, 2023 compared to an expense in the prior year period.

• Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower benefit for the nine months ended September 30, 2023 compared to the prior year period.

• Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the nine months ended September 30, 2023 compared to the prior year period.

• Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a lower net expense for the nine months ended September 30, 2023 compared to the prior year period.

Interest and debt expense increased $104 million, or 76%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting higher interest expense of CIEs and the issuance of $750 million of unsecured senior notes in March 2023.

General and administrative expense increased $88 million, or 3%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting a $20 million accrual for a regulatory matter relating to electronic communication recordkeeping requirements, higher volume related expenses and investments for business growth, $12 million of higher integration related expenses and an unfavorable change in the mark-to-market impact on share-based compensation.

Our effective tax rate was 19.5% for the six months ended June 30, 2023 compared to 19.1% for the prior year period.

Our effective tax rate was 20.5% for the nine months ended September 30, 2023 compared to 19.7% for the prior year period.

See Note 17 to our Consolidated Financial Statements for additional discussion on income taxes.

Results of Operations by Segment for the Six Months Ended June 30, 2023 and 2022

Results of Operations by Segment for the Nine Months Ended September 30, 2023 and 2022

The following table presents summary financial information by segment:

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions)

15 unchanged sentences

Adjusted operating loss $ (206) $ (219)

See our Results of Operations by Segment for the nine months ended September 30, 2023 and 2022 for a table of segment pretax adjusted operating impacts on our revenues and expenses attributable to unlocking.

AMERIPRISE FINANCIAL, INC.

Advice & Wealth Management

The following table presents the changes in wrap account assets and average balances for the six months ended June 30:

The following table presents the changes in wrap account assets and average balances for the nine months ended September 30:

(in billions)

9 unchanged sentences

Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.

(2) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period excluding the most recent month for the six months ended June 30, 2023 and 2022.

Ending wrap account assets increased $42.6 billion, or 10%, to $454.7 billion during the six months ended June 30, 2023 due to market appreciation and other of $30.7 billion and net inflows of $11.9 billion.

Average advisory wrap account assets decreased $10.0 billion, or 2%, compared to the prior year period primarily reflecting year over year market depreciation, partially offset by net inflows.

AMERIPRISE FINANCIAL, INC.

(2) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period excluding the most recent month for the nine months ended September 30, 2023 and 2022.

Ending wrap account assets increased $32.0 billion, or 8%, to $444.1 billion during the nine months ended September 30, 2023 due to market appreciation and other of $14.7 billion and net inflows of $17.3 billion.

Average advisory wrap account assets increased $9.2 billion, or 2%, compared to the prior year period primarily reflecting net inflows.

The following table presents the results of operations of our Advice & Wealth Management segment on an adjusted operating basis:

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions)

12 unchanged sentences

NM Not Meaningful.

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $492 million, or 53%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting higher short-term interest rates and growth in bank cash deposits and certificate products along with the cumulative impact of client net flows, partially offset by market depreciation.

Pretax adjusted operating margin was 30.9% for the for the six months ended June 30, 2023 compared to 22.7% for the prior year period.

Management and financial advice fees decreased $67 million, or 2%, for the six months ended June 30, 2023 compared to the prior year period primarily due to lower average wrap account assets.

Average advisory wrap account assets decreased $10.0 billion, or 2%, compared to the prior year period primarily reflecting market depreciation, partially offset by continued net inflows.

Distribution fees increased $91 million, or 8%, for the six months ended June 30, 2023 compared to the prior year period reflecting $140 million of higher fees on off-balance sheet brokerage cash, primarily due to an increase in short-term interest rates, partially offset by market depreciation.

Net investment income, which excludes net realized investment gains or losses, increased $694 million, for the six months ended June 30, 2023 compared to the prior year period primarily due to higher average invested assets due to increased bank and certificate deposits and the favorable impact of increased short-term interest rates, including higher investment yields on the investment portfolio supporting the bank and certificate products.

Distribution expenses decreased $48 million, or 2%, for the six months ended June 30, 2023 compared to the prior year period reflecting lower asset-based advisor compensation from lower average wrap account assets, partially offset by increased investments in recruiting experienced advisors.

Interest and debt expense increased $8 million for the six months ended June 30, 2023 compared to the prior year period due to the increase in capital supporting the growth in the bank and certificate products.

General and administrative expense increased $58 million, or 8%, for the six months ended June 30, 2023 compared to the prior year period primarily due to higher volume related expenses and investments for business growth.

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $626 million, or 41%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting higher short-term interest rates and growth in bank cash deposits and certificate products along with the cumulative impact of client net flows, partially offset by market depreciation.

Pretax adjusted operating margin was 30.7% for the for the nine months ended September 30, 2023 compared to 24.5% for the prior year period.

Management and financial advice fees increased $60 million, or 1%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to higher average wrap account assets.

Average advisory wrap account assets increased $9.2 billion, or 2%, compared to the prior year period primarily reflecting net inflows.

Distribution fees increased $64 million, or 4%, for the nine months ended September 30, 2023 compared to the prior year period reflecting $88 million of higher fees on off-balance sheet brokerage cash, primarily due to an increase in short-term interest rates.

AMERIPRISE FINANCIAL, INC.

Net investment income, which excludes net realized investment gains or losses, increased $992 million, for the nine months ended September 30, 2023 compared to the prior year period primarily due to higher average invested assets due to increased bank and certificate deposits and the favorable impact of increased short-term interest rates, including higher investment yields on the investment portfolio supporting the bank and certificate products.

Distribution expenses increased $56 million, or 2%, for the nine months ended September 30, 2023 compared to the prior year period reflecting higher asset-based advisor compensation from higher average wrap account assets and increased investments in recruiting experienced advisors.

Interest and debt expense increased $11 million for the nine months ended September 30, 2023 compared to the prior year period due to the increase in capital supporting the growth in the bank and certificate products.

General and administrative expense increased $87 million, or 8%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to a $20 million accrual for a regulatory matter relating to electronic communication recordkeeping requirements, higher volume related expenses and investments for business growth.

Asset Management

The following table presents global managed assets by type:

As of June 30,

Change Six Months Ended June 30,

As of September 30,

Change Nine Months Ended September 30,

(in billions)

6 unchanged sentences

(1) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.

AMERIPRISE FINANCIAL, INC.

The following table presents the changes in global managed assets:

Six Months Ended June 30,

Nine Months Ended September 30,

(in billions)

29 unchanged sentences

(5) Legacy insurance partners assets and net flows are included in the rollforwards above.

Total segment AUM increased $3.2 billion, or 1%, during the nine months ended September 30, 2023 primarily due to equity market appreciation.

Net outflows were $12.0 billion for the nine months ended September 30, 2023, a decrease of $5.9 billion compared to the prior year period.

AMERIPRISE FINANCIAL, INC.

Total segment AUM increased $32.6 billion, or 6%, during the six months ended June 30, 2023 primarily due to equity market appreciation.

Net outflows were $7.8 billion for the six months ended June 30, 2023, a decrease of $4.0 billion compared to the prior year period.

The following table presents the results of operations of our Asset Management segment on an adjusted operating basis:

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions)

2 unchanged sentences

Net investment income 29 6 23 NM

Other revenues 15 8 7 88

Other revenues 22 10 12 NM

Total revenues 2,433 2,721 (288) (11)

8 unchanged sentences

NM Not Meaningful.

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, decreased $180 million, or 36%, for the six months ended June 30, 2023 compared to the prior year period primarily due to equity and fixed income market depreciation, the cumulative impact of net outflows and lower performance fees.

Management and financial advice fees decreased $282 million, or 17%, for the six months ended June 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows, equity and fixed income market depreciation, and a decrease in performance fees of $53 million.

Distribution fees decreased $31 million, or 15%, for the six months ended June 30, 2023 compared to the prior year period primarily due to market depreciation and the cumulative impact from net outflows.

Net investment income increased $15 million, for the six months ended June 30, 2023 compared to the prior year period primarily driven by higher interest rates.

Distribution expenses decreased $66 million, or 12%, for the six months ended June 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows and market depreciation.

General and administrative expense decreased $43 million, or 5%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting lower performance fee related compensation and disciplined expense management.

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, decreased $172 million, or 25%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to the cumulative impact of net outflows, fixed income market depreciation, and lower performance fees.

Management and financial advice fees decreased $288 million, or 12%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows, fixed income market depreciation, and a decrease in performance fees of $47 million.

Distribution fees decreased $35 million, or 11%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows.

Net investment income increased $23 million, for the nine months ended September 30, 2023 compared to the prior year period primarily driven by higher interest rates.

Distribution expenses decreased $70 million, or 9%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows.

General and administrative expense decreased $44 million, or 4%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting lower performance fee related compensation and disciplined expense management.

AMERIPRISE FINANCIAL, INC.

1 unchanged sentence

The following table presents the results of operations of our Retirement & Protection Solutions segment on an adjusted operating basis:

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions)

10 unchanged sentences

Benefits, claims, losses and settlement expenses 518 330 188 57

Remeasurement (gains) losses of future policy benefit reserves (7) (10) 3 30

Change in fair value of market risk benefits 238 260 (22) (8)

Remeasurement (gains) losses of future policy benefit reserves (17) (5) (12) NM

Change in fair value of market risk benefits 497 249 248 NM

Amortization of deferred acquisition costs 172 176 (4) (2)

3 unchanged sentences

Adjusted operating earnings $ 483 $ 668 $ (185) (28) %

Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $40 million, or 12%, for the six months ended June 30, 2023 compared to the prior year period.

Management and financial advice fees decreased $47 million, or 11%, for the six months ended June 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows and market depreciation.

Distribution fees decreased $22 million, or 10%, for the six months ended June 30, 2023 compared to the prior year period due to the cumulative impact from net outflows and market depreciation.

Net investment income, which excludes net realized investment gains or losses, increased $160 million, or 67%, for the six months ended June 30, 2023 compared to the prior year period primarily due to higher interest rates, investment portfolio repositioning resulting in higher yields and increased SVA balances.

Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, increased $133 million, or 61%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting the impact of higher sales of life contingent payout annuities and increased volume in SVAs.

Change in fair value of market risk benefits, which exclude the market impact on variable annuity guaranteed benefits (net of hedges), decreased $22 million, or 8%, for the six months ended June 30, 2023 compared to the prior year period reflecting market depreciation on contractual fees.

General and administrative expense increased $18 million, or 12%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting higher one-time related expenses, timing, and a modest increase in core expenses.

NM Not Meaningful.

Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts decreased $185 million, or 28%, for the nine months ended September 30, 2023 compared to the prior year period.

Management and financial advice fees decreased $50 million, or 8%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows and market depreciation.

Distribution fees decreased $22 million, or 7%, for the nine months ended September 30, 2023 compared to the prior year period due to the cumulative impact from net outflows and market depreciation.

Net investment income, which excludes net realized investment gains or losses, increased $224 million, or 58%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to higher interest rates, investment portfolio repositioning resulting in higher yields and increased SVA balances.

Premiums, policy and contract charges increased $98 million, or 10%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to higher sales of life contingent payout annuities.

Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, increased $188 million, or 57%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the impact of higher sales of life contingent payout annuities and increased volume in SVAs.

Change in fair value of market risk benefits, which exclude the market impact on variable annuity guaranteed benefits (net of hedges), increased $248 million, for the nine months ended September 30, 2023 compared to the prior year period reflecting market depreciation on contractual fees and the impact of unlocking.

The unlocking impact for nine months ended September 30, 2023 was an expense of $128 million primarily reflecting the lower surrender assumptions on variable annuities with living benefits compared to a

AMERIPRISE FINANCIAL, INC.

benefit of $139 million for the prior year period primarily reflecting the impact of interest rate assumptions, partially offset by lower surrender assumptions and updated mortality assumptions for variable annuities with living benefits.

General and administrative expense increased $15 million, or 7%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting higher one-time related expenses, timing, and a modest increase in core expenses.

Corporate & Other

The following table presents the results of operations of our Corporate & Other segment on an adjusted operating basis:

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions)

Distribution fees $ 1 $ — $ 1 — %

Net investment income 198 107 91 85

2 unchanged sentences

Total revenues 430 352 78 22

Banking and deposit interest expense 7 — 7 -

Banking and deposit interest expense 13 2 11 NM

Total net revenues 417 350 67 19

2 unchanged sentences

Benefits, claims, losses and settlement expenses 175 184 (9) (5)

Remeasurement (gains) losses of future policy benefit reserves 2 5 (3) (60)

Remeasurement (gains) losses of future policy benefit reserves — (1) 1 NM

Amortization of deferred acquisition costs 9 6 3 50

3 unchanged sentences

Adjusted operating loss $ (206) $ (219) $ 13 6 %

NM Not Meaningful.

Our Corporate & Other segment pretax adjusted operating loss excludes net realized investment gains or losses, the market impact on fixed index annuity benefits (net of hedges), the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impact, gain or loss on disposal of a business that is not considered discontinued operations, integration and restructuring charges, and the impact of consolidating CIEs.

Our Corporate & Other segment pretax adjusted operating loss decreased $7 million, or 5%, for the six months ended June 30, 2023 compared to the prior year period.

LTC insurance had a pretax adjusted operating earnings of $9 million for the six months ended June 30, 2023 compared to a pretax adjusted operating loss of $11 million for the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.

FA business had a pretax adjusted operating loss of $14 million for the six months ended June 30, 2023 compared to a pretax adjusted operating loss of $10 million for the prior year period.

Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, integration and restructuring charges, and the impact of consolidating CIEs, increased $55 million, or 76%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions.

Interest and debt expense increased $16 million, or 52%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting the issuance of $750 million of unsecured senior notes in March 2023.

General and administrative expense, which excludes integration and restructuring charges, increased $24 million, or 24%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting the unfavorable mark-to-market impact on share-based compensation expense.

Our Corporate & Other segment pretax adjusted operating loss decreased $13 million, or 6%, for the nine months ended September 30, 2023 compared to the prior year period.

LTC insurance had a pretax adjusted operating earnings of $19 million for the nine months ended September 30, 2023 compared to a pretax adjusted operating loss of $11 million for the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.

FA business had a pretax adjusted operating loss of $22 million for the nine months ended September 30, 2023 compared to a pretax adjusted operating loss of $15 million for the prior year period.

Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, integration and restructuring charges, and the impact of consolidating CIEs, increased $91 million, or 85%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions.

Interest and debt expense increased $27 million, or 56%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the issuance of $750 million of unsecured senior notes in March 2023.

AMERIPRISE FINANCIAL, INC.

General and administrative expense, which excludes integration and restructuring charges, increased $38 million, or 24%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the unfavorable mark-to-market impact on share-based compensation expense and increased severance expense related to our expense management initiatives.

Fair Value Measurements

5 unchanged sentences

We validate prices obtained from third parties through a variety of means such as:

price variance analysis, subsequent sales testing, stale

AMERIPRISE FINANCIAL, INC.

price review, price comparison across pricing vendors and due diligence reviews of vendors.

price variance analysis, subsequent sales testing, stale price review, price comparison across pricing vendors and due diligence reviews of vendors.

See Note 13 to the Consolidated Financial Statements for additional information on our fair value measurements.

5 unchanged sentences

Consistent with general market conditions, this estimate resulted in a spread over the U.S.

Treasury curve as of June 30, 2023.

As our estimate of this spread widens or tightens, the liability will decrease or increase.

Treasury curve as of September 30, 2023.

As our estimate of this spread widens or tightens, the liability will decrease or increase, respectively.

If this nonperformance credit spread moves to a zero spread over the U.S.

Treasury curve, the reduction to total equity would be approximately $955 million, net of the reinsurance accrual and income taxes (calculated at the statutory tax rate of 21%), based on June 30, 2023 credit spreads.

Treasury curve, the reduction to total equity would be approximately $812 million, net of the reinsurance accrual and income taxes (calculated at the statutory tax rate of 21%), based on September 30, 2023 credit spreads.

Liquidity and Capital Resources

As of June 30, 2023 and December 31, 2022, we had Available Capital for Capital Adequacy of $5.0 billion and $5.2 billion, respectively.

As of both September 30, 2023 and December 31, 2022, we had Available Capital for Capital Adequacy of $5.2 billion.

Available Capital for Capital Adequacy best reflects the available capital resources of our core operations.

We maintained substantial liquidity during the six months ended June 30, 2023.

At June 30, 2023 and December 31, 2022, we had $7.3 billion and $7.0 billion, respectively, in cash and cash equivalents excluding CIEs and other restricted cash on a consolidated basis.

As of June 30, 2023 and December 31, 2022, the parent company had $895 million and $389 million, respectively, in cash, cash equivalents, and unencumbered liquid securities.

We maintained substantial liquidity during the nine months ended September 30, 2023.

As of both September 30, 2023 and December 31, 2022, we had $7.0 billion in cash and cash equivalents excluding CIEs and other restricted cash on a consolidated basis.

As of September 30, 2023 and December 31, 2022, the parent company had $728 million and $389 million, respectively, in cash, cash equivalents, and unencumbered liquid securities.

Liquid securities predominantly include U.S.

government agency mortgage back securities.

government agency mortgage backed securities.

Additional sources of liquidity at the parent company include a line of credit with an affiliate up to $727 million and an unsecured revolving committed credit facility for up to $1.0 billion that expires in June 2026.

Management’s estimate of liquidity available to the parent company in a volatile and uncertain economic environment as of June 30, 2023 was $2.1 billion which includes cash, cash equivalents, unencumbered liquid securities, the line of credit with an affiliate and a portion of the committed credit facility.

Management’s estimate of liquidity available to the parent company in a volatile and uncertain economic environment as of September 30, 2023 was $1.9 billion which includes cash, cash equivalents, unencumbered liquid securities, the line of credit with an affiliate and a portion of the committed credit facility.

Under the terms of the committed credit facility, we can increase the availability to $1.25 billion upon satisfaction of certain approval requirements.

Available borrowings under this facility are reduced by any outstanding letters of credit.

At June 30, 2023, we had no outstanding borrowings under this credit facility and had $1 million of letters of credit issued against the facility.

At September 30, 2023, we had no outstanding borrowings under this credit facility and had $1 million of letters of credit issued against the facility.

Our credit facility contains various administrative, reporting, legal and financial covenants.

We remain in compliance with all such covenants at June 30, 2023.

We remained in compliance with all such covenants at September 30, 2023.

In addition, we have access to collateralized borrowings, which may include repurchase agreements, Federal Home Loan Bank (“FHLB”) advances, and advances at the Federal Reserve.

Our subsidiaries, RiverSource Life Insurance Company (“RiverSource Life”), and Ameriprise Bank, FSB are members of the FHLB of Des Moines, which provides access to collateralized borrowings.

As of June 30, 2023 and December 31, 2022, we had $8.5 billion and $8.0 billion, respectively, of estimated borrowing capacity under the FHLB facilities, of which $201 million was outstanding as of both June 30, 2023 and December 31, 2022, respectively, and is collateralized with commercial mortgage backed securities.

As of September 30, 2023 and December 31, 2022, we had $8.1 billion and $8.0 billion, respectively, of estimated borrowing capacity under the FHLB facilities, of which $201 million was outstanding as of both September 30, 2023 and December 31, 2022, and is collateralized with commercial mortgage backed securities.

In addition, Ameriprise Bank, FSB maintains access to borrowings from the Federal Reserve which are collateralized with residential mortgage backed securities, commercial mortgage backed securities and corporate debt securities.

As of June 30, 2023 and December 31, 2022, we estimated $11.7 billion and $9.0 billion, respectively, of borrowing capacity from the Federal Reserve in addition to the FHLB capacity and there were no outstanding obligations.

As of September 30, 2023 and December 31, 2022, we estimated $11.8 billion and $9.0 billion, respectively, of borrowing capacity from the Federal Reserve in addition to the FHLB capacity and there were no outstanding obligations.

There have been no material changes to our contractual obligations disclosed in our 2022 10-K.

AMERIPRISE FINANCIAL, INC.

We issued $750 million of 5.15% unsecured senior notes on March 9, 2023.

We repaid $750 million principal amount of our 4.0% senior notes at maturity on October 16, 2023.

See Note 12 to our Consolidated Financial Statements for further information about our long-term debt maturities, including $550 million maturing within the 2024 calendar year.

We believe cash flows from operating activities, available cash balances, our availability of internal and external borrowings and dividends from our subsidiaries will be sufficient to fund our short-term and long-term operating liquidity needs and stress requirements.

We believe cash flows from operating activities, available cash balances, our availability of internal and external borrowings, access to debt markets, and dividends from our subsidiaries will be sufficient to fund our short-term and long-term operating liquidity needs and stress requirements.

On August 16, 2022, federal legislation commonly referred to as the Inflation Reduction Act of 2022 (“IRA”) was enacted.

1 unchanged sentence

Both the CAMT and share repurchase tax are effective beginning in 2023.

We expect to be an applicable corporation required to compute CAMT;

We are an applicable corporation required to compute CAMT;

however, based on current estimates, we do not believe we will be liable for the CAMT in 2023 and therefore have not recorded a liability.

We will be a covered corporation subject to the share repurchase excise tax.

AMERIPRISE FINANCIAL, INC.

Internal Revenue Service issues additional guidance related to the IRA, we will continue to evaluate any impact to our consolidated financial statements.

We are a covered corporation subject to the 1% excise tax on the net shares repurchased.

As the Internal Revenue Service issues additional guidance related to the IRA, we will continue to evaluate any impact to our consolidated financial statements.

Dividends from Subsidiaries

5 unchanged sentences

Actual Capital Regulatory Capital Requirements

June 30, 2023

September 30, 2023

December 31, 2022

June 30, 2023

September 30, 2023

December 31, 2022

20 unchanged sentences

Regulatory capital requirement is the company action level and is based on the statutory risk-based capital filing.

(2) Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of June 30, 2023 and December 31, 2022.

(2) Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of September 30, 2023 and December 31, 2022.

(3) Actual capital is determined on an adjusted GAAP basis.

4 unchanged sentences

As permitted, AOCI is excluded from the calculation of regulatory capital.

AMERIPRISE FINANCIAL, INC.

In October 2023, the Federal Reserve Board issued its final rule establishing a consolidated capital framework termed the “Building Block Approach” for savings and loan holding companies like Ameriprise Financial that are significantly engaged in insurance activities.

The rule is effective January 1, 2024, with reporting beginning in 2025.

In addition to the particular regulations restricting dividend payments and establishing subsidiary capitalization requirements, we take into account the overall health of the business, capital levels and risk management considerations in determining a strategy for payments to our parent holding company from our subsidiaries, and in deciding to use cash to make capital contributions to our subsidiaries.

During the six months ended June 30, 2023, the parent holding company received cash dividends or a return of capital from its subsidiaries of $1.6 billion (including $400 million from RiverSource Life and $760 million from AMPF Holding Corporation) and contributed cash to its subsidiaries of $204 million.

During the six months ended June 30, 2022, the parent holding company received cash dividends or a return of capital from its subsidiaries of $1.4 billion (including $500 million from RiverSource Life) and contributed cash to its subsidiaries of $294 million (including $245 million to Ameriprise Bank, FSB).

During the nine months ended September 30, 2023, the parent holding company received cash dividends or a return of capital from its subsidiaries of $2.3 billion (including $500 million from RiverSource Life and $1.1 billion from AMPF Holding, LLC) and contributed cash to its subsidiaries of $277 million.

During the nine months ended September 30, 2022, the parent holding company received cash dividends or a return of capital from its subsidiaries of $2.2 billion (including $600 million from RiverSource Life) and contributed cash to its subsidiaries of $512 million (including $375 million to Ameriprise Bank, FSB).

In 2009, RiverSource Life established an agreement to protect its exposure to Genworth Life Insurance Company (“GLIC”) for its reinsured LTC.

1 unchanged sentence

The terms of these confidential provisions within the agreement have been shared, in the normal course of regular reviews, with our domiciliary regulator and rating agencies.

GLIC is domiciled in Delaware, so in the event GLIC was subjected to rehabilitation or insolvency proceedings,

AMERIPRISE FINANCIAL, INC.

such proceedings would be located in (and governed by) Delaware laws.

GLIC is domiciled in Delaware, so in the event GLIC was subjected to rehabilitation or insolvency proceedings, such proceedings would be located in (and governed by) Delaware laws.

Delaware courts have a long tradition of respecting commercial and reinsurance affairs as well as contracts among sophisticated parties.

1 unchanged sentence

Accordingly, while no credit protections are perfect, we believe the correct way to think about the risks represented by our counterparty credit exposure to GLIC is not the full amount of the gross liability that GLIC reinsures, but a much smaller net exposure to GLIC (if any that might exist after taking into account our credit protections).

Thus, management believes that our agreement and offsetting non-LTC legacy arrangements with Genworth will enable RiverSource Life to recover on all net exposure in all material respects in the event of a rehabilitation or insolvency of GLIC.

Thus, management believes that our agreement and offsetting non-LTC legacy arrangements with Genworth Financial, Inc.

will enable RiverSource Life to recover on all net exposure in all material respects in the event of a rehabilitation or insolvency of GLIC.

Dividends Paid to Shareholders and Share Repurchases

We paid regular quarterly dividends to our shareholders totaling $284 million and $275 million for the six months ended June 30, 2023 and 2022, respectively.

On July 26, 2023, we announced a quarterly dividend of $1.35 per common share.

The dividend will be paid on August 18, 2023 to our shareholders of record at the close of business on August 7, 2023.

We paid regular quarterly dividends to our shareholders totaling $427 million and $416 million for the nine months ended September 30, 2023 and 2022, respectively.

On October 25, 2023, we announced a quarterly dividend of $1.35 per common share.

The dividend will be paid on November 17, 2023 to our shareholders of record at the close of business on November 6, 2023.

In January 2022, our Board of Directors authorized us to repurchase up to $3.0 billion for the repurchase of our common stock through March 31, 2024.

As of June 30, 2023, we had $0.6 billion remaining under this share repurchase authorization.

On July 24, 2023, our Board of Directors authorized an additional $3.5 billion for the repurchase of our common stock through September 30, 2025.

As of September 30, 2023, we had $3.6 billion remaining under these share repurchase authorizations.

We intend to fund share repurchases through existing excess capital, future free cash flow generation and other customary financing methods.

1 unchanged sentence

Acquisitions under the share repurchase program may be made in the open market, through privately negotiated transactions or block trades or other means.

During the six months ended June 30, 2023, we repurchased a total of 3.2 million shares of our common stock at an average price of $316.40 per share.

During the nine months ended September 30, 2023, we repurchased a total of 4.7 million shares of our common stock at an average price of $325.53 per share.

Cash flows of CIEs and restricted and segregated cash and cash equivalents are reflected in our cash flows provided by (used in) operating activities, investing activities and financing activities.

2 unchanged sentences

Operating Activities

Net cash provided by operating activities decreased $201 million to $1.6 billion for the six months ended June 30, 2023 compared to $1.8 billion for the prior year period primarily reflecting higher income taxes paid and decreases in brokerage deposits, partially offset by higher investment income on fixed maturity securities.

Net cash provided by operating activities decreased $648 million to $2.5 billion for the nine months ended September 30, 2023 compared to $3.2 billion for the prior year period primarily reflecting higher income taxes paid and decreases in brokerage deposits, partially offset by higher investment income on fixed maturity securities.

The higher investment income is driven by higher yields and the growth in Ameriprise Bank customer deposits and certificate business growth.

1 unchanged sentence

Our investing activities primarily relate to our Available-for-Sale investment portfolio and in recent quarters is significantly affected by the net flows of our face amount certificates and bank deposit activity.

Net cash used in investing activities increased $1.4 billion to $6.0 billion for the six months ended June 30, 2023 compared to $4.6 billion for the prior year period primarily reflecting a $2.2 billion increase in purchases of Available-for-Sale securities, partially offset by a $441 million increase in proceeds from maturities, sinking fund payments and calls of Available-for-Sale securities.

Financing Activities

Net cash provided by financing activities increased $1.8 billion to $4.4 billion for the six months ended June 30, 2023 compared to $2.6 billion for the prior year period primarily reflecting a $2.8 billion increase in net cash flows from investment certificates partially offset by a $1.5 billion decrease in the change in banking deposits, net.

AMERIPRISE FINANCIAL, INC.

Net cash used in investing activities decreased $1.9 billion to $7.3 billion for the nine months ended September 30, 2023 compared to $9.2 billion for the prior year period primarily reflecting a $811 million increase in proceeds from maturities, sinking fund payments and calls of Available-for-Sale securities, a $442 million decrease in net cash outflows related to investments of consolidated investment entities, a $254 million decrease in net cash outflows for written options with deferred premiums and a $258 million decrease in cash used for purchases of Available-for-Sale securities.

Financing Activities

Net cash provided by financing activities decreased $2.2 billion to $4.0 billion for the nine months ended September 30, 2023 compared to $6.2 billion for the prior year period primarily reflecting a $4.5 billion decrease in the change in banking deposits, net, partially offset by a $2.4 billion increase in net cash flows from investment certificates.

Forward-Looking Statements

31 unchanged sentences

• interruptions or other failures in our operating systems and networks, including errors or failures caused by third-party service providers, interference or third-party attacks;

AMERIPRISE FINANCIAL, INC.

• interruptions or other errors in our telecommunications or data processing systems;

6 unchanged sentences

• changes to laws and regulations that govern operation of our business;

AMERIPRISE FINANCIAL, INC.

• supervision by bank regulators and related regulatory and prudential standards as a savings and loan holding company that may limit our activities and strategies;

12 unchanged sentences

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis