What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-05-06 compared with 2023-11-02 · 373 added, 1017 removed, 2054 unchanged (40% of the section changed)

1 unchanged sentence

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions, except per share amounts)

23 unchanged sentences

Diluted $ 9.46 $ 3.79

(1) Certain prior period amounts have been restated.

See Note 3 for more information.

See Notes to Consolidated Financial Statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions)

5 unchanged sentences

Effect of changes in instrument-specific credit risk on market risk benefits ( 37 ) 161

Defined benefit plans

Foreign currency translation adjustment

( 60 ) ( 127 ) 14 ( 295 )

Total other comprehensive income (loss), net of tax

( 491 ) ( 917 ) ( 294 ) ( 2,023 )

Total comprehensive income (loss) $ 826 $ 978

(1) Certain prior period amounts have been restated.

See Note 3 for more information.

See Notes to Consolidated Financial Statements.

1 unchanged sentence

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

September 30, 2023 December 31, 2022 (1)

March 31, 2024 December 31, 2023

(in millions, except share amounts)

12 unchanged sentences

Restricted and segregated cash, cash equivalents and investments

13,403 11,700

Other assets of consolidated investment entities, at fair value — 1

26 unchanged sentences

$ 179,831 $ 175,191

(1) Certain prior period amounts have been restated.

See Note 3 for more information.

See Notes to Consolidated Financial Statements.

7 unchanged sentences

(in millions, except per share data)

Balances at July 1, 2023

102,793,359 $ 3 $ 9,670 $ 20,941 $ ( 24,185 ) $ ( 2,349 ) $ 4,080

Net income — — — 872 — — 872

Other comprehensive income (loss), net of tax — — — — — ( 491 ) ( 491 )

Dividends to shareholders — — — ( 143 ) — — ( 143 )

Repurchase of common shares ( 1,646,485 ) — — — ( 568 ) — ( 568 )

Share-based compensation plans 234,392 — 74 — 1 — 75

Balances at September 30, 2023

101,381,266 $ 3 $ 9,744 $ 21,670 $ ( 24,752 ) $ ( 2,840 ) $ 3,825

Balances at July 1, 2022

108,438,618 $ 3 $ 9,380 $ 18,486 $ ( 22,051 ) $ ( 1,748 ) $ 4,070

Net income — — — 1,061 — — 1,061

Other comprehensive income (loss), net of tax — — — — — ( 917 ) ( 917 )

Dividends to shareholders — — — ( 141 ) — — ( 141 )

Repurchase of common shares ( 1,931,209 ) — — — ( 509 ) — ( 509 )

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

Balances at September 30, 2022 (1)

106,693,611 $ 3 $ 9,434 $ 19,406 $ ( 22,560 ) $ ( 2,665 ) $ 3,618

Balances at January 1, 2024

6 unchanged sentences

Share-based compensation plans 1,212,525 — 100 — 73 — 173

Balances at September 30, 2023

Balances at March 31, 2024

99,644,365 $ 3 $ 9,924 $ 22,752 $ ( 25,870 ) $ ( 1,930 ) $ 4,879

6 unchanged sentences

Share-based compensation plans 1,088,797 — 95 — 63 — 158

Balances at September 30, 2022 (1)

Balances at March 31, 2023

104,356,434 $ 3 $ 9,612 $ 20,197 $ ( 23,683 ) $ ( 1,985 ) $ 4,144

(1) Certain prior period amounts have been restated.

See Note 3 for more information.

See Notes to Consolidated Financial Statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions)

Cash Flows from Operating Activities

$ 2,179 $ 2,500

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

14 unchanged sentences

Derivatives, net of collateral

Brokerage deposits

( 51 ) ( 242 )

Brokerage deposits

Accounts payable and accrued expenses

( 436 ) ( 219 )

Current income tax, net ( 44 ) 80

Deferred taxes, net 1 10

Other operating assets and liabilities of consolidated investment entities, net

19 unchanged sentences

Cash received from written options with deferred premiums

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

Cash paid for deposit receivables ( 9 ) ( 10 )

Cash received for deposit receivables 167 210

( 41 ) ( 13 )

Net cash provided by (used in) investing activities $ ( 569 ) $ ( 3,146 )

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions)

12 unchanged sentences

Change in banking deposits, net

( 170 ) 1,702

Cash paid for purchased options with deferred premiums

3 unchanged sentences

Repayments of long-term debt

( 8 ) ( 507 )

Dividends paid to shareholders

6 unchanged sentences

Net cash provided by (used in) financing activities

( 1,431 ) 3,162

Effect of exchange rate changes on cash

8 unchanged sentences

Leased assets obtained in exchange for operating lease liabilities

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

(in millions)

7 unchanged sentences

Total cash and cash equivalents including amounts restricted per consolidated statements of cash flows $ 8,059 $ 8,620

(1) Certain prior period amounts have been restated.

See Note 3 for more information.

See Notes to Consolidated Financial Statements.

5 unchanged sentences

The foreign operations of Ameriprise Financial, Inc.

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

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

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

5 unchanged sentences

generally accepted accounting principles (“GAAP”).

Certain reclassifications of prior period amounts have been made to conform with the current presentation.

Results of operations reported for interim periods are not necessarily indicative of results for the entire year.

These Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) on February 22, 2024 (“2023 10-K”).

On July 13, 2023, the Company announced that it withdrew its application to convert Ameriprise Bank, FSB (“Ameriprise Bank”) to a state-chartered industrial bank and its application to establish a new limited purpose national trust bank.

Ameriprise Bank will continue to operate as it does today, regulated by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation.

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

Other than disclosed in Note 12, no other subsequent events or transactions requiring recognition or disclosure were identified.

Summary of Significant Accounting Policies

The Company adopted accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts , on January 1, 2023.

The significant accounting policies for market risk benefits (“MRB”);

deferred acquisition costs (“DAC”);

deferred sales inducement costs (“DSIC”);

policyholder account balances, future policy benefits and claims;

and unearned revenue liability were added or updated as a result of adopting the new accounting standard.

See Note 3 for additional information related to the transition approach and adoption impact.

Amounts Based on Estimates and Assumptions

Accounting estimates are an integral part of the Consolidated Financial Statements.

In part, they are based upon assumptions concerning future events.

Among the more significant are those that relate to investment securities valuation and the recognition of credit losses or impairments, valuation of derivative instruments, litigation reserves, future policy benefits, market risk benefits, and income taxes and the recognition of deferred tax assets and liabilities.

These accounting estimates reflect the best judgment of management and actual results could differ.

Market Risk Benefits

Market risk benefits are contracts or contract features that both provide protection to the contractholder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk.

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

Guarantees accounted for as market risk benefits include guaranteed minimum death benefit (“GMDB”), guaranteed minimum income benefit (“GMIB”), guaranteed minimum withdrawal benefit (“GMWB”) and guaranteed minimum accumulation benefit (“GMAB”).

If a contract contains multiple market risk benefits, those market risk benefits are bundled together as a single compound market risk benefit.

Market risk benefits are measured at fair value, at the individual contract level, using a non-option-based valuation approach or an option-based valuation approach dependent upon the fee structure of the contract.

Changes in fair value are recognized in net income each period with the exception of the portion of the change in fair value due to a change in the instrument-specific credit risk, which is recognized in other comprehensive income (“OCI”).

Deferred Acquisition Costs

The Company incurs costs in connection with acquiring new and renewal insurance and annuity businesses.

The portion of these costs which are incremental and direct to the acquisition of a new or renewal insurance policy or annuity contract are deferred.

Significant costs capitalized include sales based compensation related to the acquisition of new and renewal insurance policies and annuity contracts, medical inspection costs for successful sales, and a portion of employee compensation and benefit costs based upon the

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

amount of time spent on successful sales.

Sales based compensation paid to advisors and employees and third-party distributors is capitalized.

Employee compensation and benefits costs which are capitalized relate primarily to sales efforts, underwriting and processing.

All other costs which are not incremental direct costs of acquiring an insurance policy or annuity contract are expensed as incurred.

The DAC associated with insurance policies or annuity contracts that are significantly modified or internally replaced with another contract are accounted for as write-offs.

These transactions are anticipated in establishing amortization periods and other valuation assumptions.

The Company monitors other DAC amortization assumptions, such as persistency, mortality, morbidity, and variable annuity benefit utilization each quarter and, when assessed independently, each could impact the Company’s DAC balances.

Unamortized DAC is reduced for actual experience in excess of expected experience.

The analysis of DAC balances and the corresponding amortization considers all relevant factors and assumptions described previously.

Unless the Company’s management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year.

DAC is amortized on a constant-level basis for the grouped contracts over the expected contract term to approximate straight-line amortization.

Contracts are grouped by contract type and issue year into cohorts consistent with the grouping used in estimating the associated liability for future policy benefits.

DAC related to all long-duration product types (except for life contingent payout annuities) is grouped on a calendar-year annual basis for each legal entity.

Further disaggregation is reported for any contracts that include an additional liability for death or other insurance benefit.

DAC related to life contingent payout annuities is grouped on a calendar-year annual basis for each legal entity for policies issued prior to 2021 and on a quarterly basis for each legal entity thereafter.

DAC related to annuity products (including variable deferred annuities, structured variable annuities, fixed deferred annuities, and life contingent payout annuities) is amortized based on initial premium.

DAC related to life insurance products (including universal life (“UL”) insurance, variable universal life (“VUL”) insurance, indexed universal life (“IUL”) insurance, term life insurance, and whole life insurance) is amortized based on original specified amount (i.e., face amount).

DAC related to disability income (“DI”) insurance is amortized based on original monthly benefit.

The accounting contract term for annuity products (except for life contingent payout annuities) is over the projected accumulation period.

Life contingent payout annuities are amortized over the period which annuity payments are expected to be paid.

The accounting contract term for life insurance products is over the projected life of the contract.

DI insurance is amortized over the projected life of the contract, including the claim paying period.

Deferred Sales Inducement Costs

Deferred sales inducements are contract features that are intended to attract new customers or to persuade existing customers to keep their current policy.

Sales inducement costs consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values.

These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature.

The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC.

DSIC is recorded in Other assets and amortization of DSIC is recorded in Benefits, claims, losses and settlement expenses.

The Company cedes insurance risk to other insurers under reinsurance agreements.

Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts.

Reinsurance premiums paid for traditional life, long term care (“LTC”), DI and life contingent payout annuities, net of the change in any prepaid reinsurance asset, are reported as a reduction of Premiums, policy and contract charges.

Reinsurance recoveries are reported as components of Benefits, claims, losses and settlement expenses.

UL and VUL reinsurance premiums are reported as a reduction of Premiums, policy and contract charges.

In addition, for UL and VUL insurance policies, the net cost of reinsurance ceded, which represents the discounted amount of the expected cash flows between the reinsurer and the Company, is classified as an asset and amortized based on estimated gross profits over the period the reinsured policies are in force.

Changes in the net cost of reinsurance are reflected as a component of Premiums, policy and contract charges.

Insurance liabilities are reported before the effects of reinsurance.

Policyholder account balances, future policy benefits and claims recoverable under reinsurance contracts are recorded within Receivables, net of the allowance for credit losses.

The Company evaluates the financial condition of its reinsurers prior to entering into new reinsurance contracts and on a periodic basis during the contract term.

The allowance for credit losses related to reinsurance recoverable is based on applying observable industry data including insurer ratings, default and loss severity data to the Company’s reinsurance recoverable balances.

Management evaluates the results of the calculation and considers differences between the industry data and the Company’s data.

Such differences include that

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

the Company has no actual history of losses and that industry data may contain non-life insurers.

This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change given the long-term nature of these receivables.

In addition, the Company has a reinsurance protection agreement that provides credit protections for its reinsured long term care business.

The allowance for credit losses on reinsurance recoverable is recorded through provisions charged to Benefits, claims, losses and settlement expenses.

The Company also assumes life insurance and fixed annuity risk from other insurers in limited circumstances.

Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts.

Liabilities for assumed business are recorded within Policyholder account balances, future policy benefits and claims.

Policyholder Account Balances, Future Policy Benefits and Claims

The Company establishes reserves to cover the benefits associated with non-traditional and traditional long-duration products and short-duration products.

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, whole life, DI and LTC insurance products.

Non-Traditional Long-Duration Products

The liabilities for non-traditional long-duration products include fixed account values on variable and fixed annuities and UL and VUL policies, non-life contingent payout annuities, liabilities for guaranteed benefits associated with variable annuities (including structured variable annuities) and embedded derivatives for structured variable annuities, indexed annuities, and IUL products.

Liabilities for fixed account values on variable annuities, structured variable annuities, fixed deferred annuities, and UL and VUL policies are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges.

The liability for non-life contingent payout annuities is recognized as the present value of future payments using the effective yield at inception of the contract.

A portion of the Company’s 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.

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.

The liability for these future losses is determined at the reporting date by estimating the death benefits in excess of account value and recognizing the excess over the estimated life based on expected assessments (e.g.

cost of insurance charges, contractual administrative charges, similar fees and investment margin).

See Note 9 for information regarding the liability for contracts with secondary guarantees.

Liabilities for fixed deferred indexed annuity, structured variable annuity and IUL products are equal to the accumulation of host contract values, guaranteed benefits, and the fair value of embedded derivatives.

See Note 11 for information regarding variable annuity guarantees.

Embedded Derivatives

The fair value of embedded derivatives related to structured variable annuities, indexed annuities and IUL fluctuate based on equity markets and interest rates and the estimate of the Company’s nonperformance risk and is recorded in Policyholder account balances, future policy benefits and claims.

See Note 13 for information regarding the fair value measurement of embedded derivatives.

Traditional Long-Duration Products

The liabilities for traditional long-duration products include cash flows related to unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life, DI, LTC, and life contingent payout annuity policies as claims are incurred in the future.

The claim liability (also referred to as disabled life reserves) is presented together as one liability for future policy benefits.

A liability for future policy benefits, which is the present value of estimated future policy benefits to be paid to or on behalf of policyholders and certain related expenses less the present value of estimated future net premiums to be collected from policyholders, is accrued as premium revenue is recognized.

Expected insurance benefits are accrued over the life of the contract in proportion to premium revenue recognized (referred to as the net premium approach).

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

Assumptions utilized in the net premium approach, including mortality, morbidity and terminations, are reviewed as part of experience studies at least annually or more frequently if suggested by evidence.

Expense assumptions and actual expenses are updated within the net premium calculation consistent with other policyholder assumptions.

The updated cash flows used in the calculation are discounted using a forward rate curve.

The discount rate represents an upper-medium-grade (i.e., low credit risk) fixed-income instrument yield (i.e., an A rating) that reflects the duration characteristics of the

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Discount rates will be locked in annually, at the end of each year for all products, except life contingent payout annuities, and calculated as the monthly average discount rate curves for the year.

For life contingent payout annuities, the discount rates will be locked in quarterly at the end of each quarter based on the average of the three months for the quarter.

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.

When net premiums are updated for cash flow changes, the estimated cash flows over the entire life of a group of contracts are updated using historical experience and updated future cash flow assumptions.

The revised net premiums are used to calculate an updated liability for future policy benefits as of the beginning of the reporting period, discounted at the original locked in rate (i.e., contract issuance rate).

The updated liability for future policy benefits as of the beginning of the reporting period is then compared with the carrying amount of the liability as of that date prior to updating cash flow assumptions to determine the current period remeasurement gain or loss reflected in current period earnings.

The revised net premiums are then applied as of the beginning of the quarter to calculate the benefit expense for the current reporting period.

The difference between the updated carrying amount of the liability for future policy benefits measured using the current discount rate assumption and the original discount rate assumption is recognized in OCI.

The interest accretion rate remains the original discount rate used at contract issue date.

If the updating of cash flow assumptions results in the present value of future benefits and expenses exceeding the present value of future gross premiums, a charge to net income is recorded for the current reporting period such that net premiums are set equal to gross premiums.

In subsequent periods, the liability for future policy benefits is accrued with net premiums set equal to gross premiums.

Contracts (except for life contingent payout annuities sold subsequent to December 31, 2020) are grouped into cohorts by contract type and issue year, as well as by legal entity and reportable segment.

Life contingent payout annuities sold in periods beginning in 2021 are grouped into quarterly cohorts.

See Note 9 for information regarding the liabilities for traditional long-duration products.

Deferred Profit Liability

For limited-payment products, gross premiums received in excess of net premiums are deferred at initial recognition as a deferred profit liability (“DPL”).

Gross premiums are measured using assumptions consistent with those used in the measurement of the liability for future policy benefits, including discount rate, mortality, lapses and expenses.

The DPL is amortized and recognized as premium revenue in proportion to expected future benefit payments from annuity contracts.

Interest is accreted on the balance of the DPL using the discount rate determined at contract issuance.

The Company reviews and updates its estimate of cash flows from the DPL at the same time as the estimates of cash flows for the liability for future policy benefits.

When cash flows are updated, the updated estimates are used to recalculate the DPL at contract issuance.

The recalculated DPL as of the beginning of the current reporting period is compared to the carrying amount of the DPL as of the beginning of the current reporting period, and any difference is recognized as either a charge or credit to premium revenue.

DPL is recorded in Policyholder account balances, future policy benefits and claims and included as a reconciling item within the disaggregated rollforwards.

Unearned Revenue Liability

The Company’s UL and VUL policies require payment of fees or other policyholder assessments in advance for services to be provided in future periods.

These charges are deferred as unearned revenue and amortized consistent with DAC amortization factors.

The unearned revenue liability is recorded in Other liabilities and the amortization is recorded in Premiums, policy and contract charges.

For clients who pay financial planning fees prior to the advisor’s delivery of the financial plan, the financial planning fees received in advance are deferred until the plan is delivered to the client.

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

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

Recent Accounting Pronouncements

Adoption of New Accounting Standards

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

In March 2022, the Financial Accounting Standards Board (“FASB”) proposed amendments to Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses:

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

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

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

The update also requires entities to disclose current-period gross write-offs

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost.

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

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

The Company adopted the standard on January 1, 2023.

The adoption of this update did not have a material impact on the Company’s consolidated results of operations and financial condition and modifications to disclosures are immaterial in the current period.

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

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

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

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

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

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

The Company adopted the standard on January 1, 2023.

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

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

In August 2018, the FASB updated the accounting standard related to long-duration insurance contracts (ASU 2018-12).

The guidance changes elements of the measurement models and disclosure requirements for an insurer’s long-duration insurance contract benefits and acquisition costs by expanding the use of fair value accounting to certain contract benefits, requiring updates, if any, and at least annually, to assumptions used to measure liabilities for future policy benefits, changing the amortization pattern of deferred acquisition costs to a constant-level basis and removing certain shadow adjustments previously recorded in accumulated other comprehensive income (loss) (“AOCI”).

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

When the Company adopted the standard effective January 1, 2023 with a transition date of January 1, 2021 (the “transition date”), opening equity was adjusted for the adoption impacts to retained earnings and AOCI and prior periods presented (i.e.

2021 and 2022) were restated.

The adoption impact as of January 1, 2021 was a reduction in total equity of $ 1.9 billion, of which $ 0.9 billion and $ 1.0 billion were reflected in retained earnings and AOCI, respectively.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following table presents the effects of the adoption of the above new accounting standard to the Company’s previously reported Consolidated Balance Sheets:

As Filed December 31, 2022 Adjustment Post-adoption December 31, 2022 As Filed December 31, 2021 Adjustment Post-adoption December 31, 2021

(in millions)

Market risk benefits $ — $ 1,015 $ 1,015 $ — $ 539 $ 539

Receivables (allowance for credit losses:

15,779 ( 184 ) 15,595 16,205 927 17,132

Deferred acquisition costs 3,160 ( 383 ) 2,777 2,782 62 2,844

Other assets 9,341 ( 64 ) 9,277 11,375 297 11,672

Total assets $ 158,468 $ 384 $ 158,852 $ 175,910 $ 1,825 $ 177,735

Liabilities and Equity

Policyholder account balances, future policy benefits and claims $ 36,067 $ ( 1,935 ) $ 34,132 $ 35,750 $ ( 727 ) $ 35,023

Market risk benefits — 2,118 2,118 — 3,440 3,440

Other liabilities 6,305 11 6,316 8,641 216 8,857

Total liabilities 154,855 194 155,049 169,969 2,929 172,898

Retained earnings 19,531 387 19,918 17,525 ( 203 ) 17,322

Accumulated other comprehensive income (loss), net of tax ( 2,349 ) ( 197 ) ( 2,546 ) 259 ( 901 ) ( 642 )

Total equity 3,613 190 3,803 5,941 ( 1,104 ) 4,837

Total liabilities and equity $ 158,468 $ 384 $ 158,852 $ 175,910 $ 1,825 $ 177,735

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following tables present the effects of the adoption of the above new accounting standard to the Company’s previously reported Consolidated Statements of Operations:

Three Months Ended September 30,

As Filed 2022 Adjustment Post-adoption 2022 As Filed 2021 Adjustment Post-adoption 2021

(in millions, except per share amounts)

Distribution fees $ 506 $ — $ 506 $ 458 $ ( 3 ) $ 455

Premiums, policy and contract charges 361 ( 7 ) 354 ( 805 ) ( 1 ) ( 806 )

Total revenues 3,506 ( 7 ) 3,499 2,906 ( 4 ) 2,902

Total net revenues 3,491 ( 7 ) 3,484 2,903 ( 4 ) 2,899

Benefits and expenses

Distribution expenses 1,195 3 1,198 1,285 4 1,289

Benefits, claims, losses and settlement expenses 370 ( 289 ) 81 ( 719 ) ( 267 ) ( 986 )

Remeasurement (gains) losses of future policy benefit reserves — ( 1 ) ( 1 ) — ( 2 ) ( 2 )

Change in fair value of market risk benefits — ( 321 ) ( 321 ) — 341 341

Amortization of deferred acquisition costs 107 ( 49 ) 58 9 54 63

Total expenses 2,806 ( 657 ) 2,149 1,633 130 1,763

Pretax income 685 650 1,335 1,270 ( 134 ) 1,136

Income tax provision 137 137 274 239 ( 29 ) 210

Net income $ 548 $ 513 $ 1,061 $ 1,031 $ ( 105 ) $ 926

Earnings per share

Basic $ 4.96 $ 4.64 $ 9.60 $ 8.86 $ ( 0.90 ) $ 7.96

Diluted $ 4.86 $ 4.55 $ 9.41 $ 8.65 $ ( 0.88 ) $ 7.77

Nine Months Ended September 30,

As Filed 2022 Adjustment Post-adoption 2022 As Filed 2021 Adjustment Post-adoption 2021

(in millions, except per share amounts)

Distribution fees $ 1,410 $ 1 $ 1,411 $ 1,368 $ ( 3 ) $ 1,365

Premiums, policy and contract charges 1,094 ( 60 ) 1,034 ( 94 ) ( 33 ) ( 127 )

Total revenues 10,674 ( 59 ) 10,615 9,681 ( 36 ) 9,645

Total net revenues 10,654 ( 59 ) 10,595 9,671 ( 36 ) 9,635

Benefits and expenses

Distribution expenses 3,728 9 3,737 3,693 10 3,703

Benefits, claims, losses and settlement expenses 663 ( 746 ) ( 83 ) 338 ( 816 ) ( 478 )

Remeasurement (gains) losses of future policy benefit reserves — ( 6 ) ( 6 ) — ( 47 ) ( 47 )

Change in fair value of market risk benefits — 298 298 — ( 135 ) ( 135 )

Amortization of deferred acquisition costs 355 ( 165 ) 190 77 117 194

Total expenses 8,091 ( 610 ) 7,481 7,187 ( 871 ) 6,316

Pretax income 2,563 551 3,114 2,484 835 3,319

Income tax provision 498 116 614 425 177 602

Net income $ 2,065 $ 435 $ 2,500 $ 2,059 $ 658 $ 2,717

Earnings per share

Basic $ 18.42 $ 3.88 $ 22.30 $ 17.42 $ 5.57 $ 22.99

Diluted $ 18.05 $ 3.80 $ 21.85 $ 17.03 $ 5.44 $ 22.47

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Years Ended December 31,

As Filed 2022 Adjustment Post-adoption 2022 As Filed 2021 Adjustment Post-adoption 2021

(in millions, except per share amounts)

Distribution fees $ 1,938 $ 1 $ 1,939 $ 1,830 $ ( 2 ) $ 1,828

Premiums, policy and contract charges 1,411 ( 14 ) 1,397 273 ( 52 ) 221

Total revenues 14,347 ( 13 ) 14,334 13,443 ( 54 ) 13,389

Total net revenues 14,271 ( 13 ) 14,258 13,431 ( 54 ) 13,377

Benefits and expenses

Distribution expenses 4,923 12 4,935 5,015 13 5,028

Benefits, claims, losses and settlement expenses 1,372 ( 1,130 ) 242 716 ( 872 ) ( 156 )

Remeasurement (gains) losses of future policy benefit reserves — 1 1 — ( 52 ) ( 52 )

Change in fair value of market risk benefits — 311 311 — ( 113 ) ( 113 )

Amortization of deferred acquisition costs 208 44 252 124 135 259

Total expenses 11,089 ( 762 ) 10,327 10,081 ( 889 ) 9,192

Pretax income 3,182 749 3,931 3,350 835 4,185

Income tax provision 623 159 782 590 178 768

Net income $ 2,559 $ 590 $ 3,149 $ 2,760 $ 657 $ 3,417

Earnings per share

Basic $ 22.99 $ 5.30 $ 28.29 $ 23.53 $ 5.60 $ 29.13

Diluted $ 22.51 $ 5.19 $ 27.70 $ 23.00 $ 5.48 $ 28.48

The adoption of the standard did not affect the previously reported totals for net cash flows provided by (used in) operating, investing, or financing activities.

Leases – Common Control Arrangements

In March 2023, the FASB proposed amendments to ASU 2016-02, Leases (“Topic 842”).

The update applicable to all entities requires leasehold improvements associated with common control leases to be amortized over the useful life of the leasehold improvements to the common control group as long as the lessee controls the use of the underlying asset through a lease and to be accounted for as a transfer between entities under common control through an adjustment to equity if, and when, the lessee no longer controls the use of the underlying asset.

The amendment is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years.

Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance.

The Company early adopted the update during the second quarter of 2023 and will apply the amendments prospectively as of the beginning of 2023 to all new and existing leasehold improvements recognized on or after that date with any remaining unamortized balance of existing leasehold improvements amortized over their remaining useful life to the common control group determined at that date.

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

Future Adoption of New Accounting Standards

Segment Reporting – Improvements to Reportable Segment Disclosures

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Improvements to Reportable Segment Disclosures , updating reportable segment disclosure requirements in accordance with Topic 280, Segment Reporting (“Topic 280”), primarily through enhanced disclosures about significant segment expenses.

In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss and contain other disclosure requirements.

The amendments are effective for annual periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024.

Early adoption is permitted.

The Company is assessing changes to the segment-related disclosures resulting from the standard.

The adoption of the standard will not have an impact on the Company’s consolidated results of operations and financial condition as the standard is disclosure-related only.

Income Taxes – Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , updating the accounting standards related to income tax disclosures, primarily focused on the disaggregation of income taxes paid and the rate reconciliation table.

The standard is to be applied prospectively with an option for retrospective application and is effective for annual periods beginning after December 15, 2024, with early adoption permitted.

The Company is assessing changes to the income tax-related disclosures resulting from the standard.

The adoption of the standard will not have an impact on the Company’s consolidated results of operations and financial condition as the standard is disclosure-related only.

AMERIPRISE FINANCIAL, INC.

2 unchanged sentences

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

Three Months Ended September 30, 2023

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

Revenue Total

(in millions)

Management and financial advice fees:

Asset management fees:

Retail $ — $ 499 $ — $ — $ 499 $ — $ 499

Institutional — 165 — — 165 — 165

Advisory fees 1,228 — — — 1,228 — 1,228

Financial planning fees 102 — — — 102 — 102

Transaction and other fees 94 50 14 — 158 — 158

Total management and financial advice fees 1,424 714 14 — 2,152 — 2,152

Distribution fees:

Mutual funds 184 53 — — 237 — 237

Insurance and annuity 226 39 82 — 347 — 347

Off-balance sheet brokerage cash 58 — — — 58 — 58

Other products 84 — — — 84 — 84

Total distribution fees 552 92 82 — 726 — 726

Other revenues 57 2 — — 59 — 59

Total revenue from contracts with customers 2,033 808 96 — 2,937 — 2,937

Revenue from other sources (1)

525 18 780 149 1,472 13 1,485

Total segment gross revenues 2,558 826 876 149 4,409 13 4,422

Banking and deposit interest expense ( 151 ) — — ( 6 ) ( 157 ) — ( 157 )

Total segment net revenues 2,407 826 876 143 4,252 13 4,265

Elimination of intersegment revenues ( 217 ) ( 21 ) ( 104 ) 5 ( 337 ) ( 3 ) ( 340 )

Total net revenues $ 2,190 $ 805 $ 772 $ 148 $ 3,915 $ 10 $ 3,925

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Three Months Ended September 30, 2022

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

Revenue Total

(in millions)

Management and financial advice fees:

Asset management fees:

Retail $ — $ 509 $ — $ — $ 509 $ — $ 509

Institutional — 159 — — 159 — 159

Advisory fees 1,107 — — — 1,107 — 1,107

Financial planning fees 97 — — — 97 — 97

Transaction and other fees 93 51 15 — 159 — 159

Total management and financial advice fees 1,297 719 15 — 2,031 — 2,031

Distribution fees:

Mutual funds 180 56 — — 236 — 236

Insurance and annuity 205 40 84 — 329 — 329

Off-balance sheet brokerage cash (2)

110 — — — 110 — 110

Other products 84 — — — 84 — 84

Total distribution fees 579 96 84 — 759 — 759

Other revenues 51 1 — — 52 — 52

Total revenue from contracts with customers 1,927 816 99 — 2,842 — 2,842

Revenue from other sources (1)

225 7 684 117 1,033 ( 55 ) 978

Total segment gross revenues 2,152 823 783 117 3,875 ( 55 ) 3,820

Banking and deposit interest expense ( 15 ) — — ( 2 ) ( 17 ) — ( 17 )

Total segment net revenues 2,137 823 783 115 3,858 ( 55 ) 3,803

Elimination of intersegment revenues ( 202 ) ( 14 ) ( 101 ) 1 ( 316 ) ( 3 ) ( 319 )

Total net revenues $ 1,935 $ 809 $ 682 $ 116 $ 3,542 $ ( 58 ) $ 3,484

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

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

26 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Nine Months Ended September 30, 2022

Three Months Ended March 31, 2023

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

27 unchanged sentences

The amounts primarily consist of revenue associated with insurance and annuity products and investment income from financial instruments.

(2) Prior to the fourth quarter of 2022, Off-balance sheet brokerage cash was included in Other products.

Prior periods have been updated to be comparative.

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

15 unchanged sentences

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

The revenue is earned based on a contractual fixed rate applied, as a percentage, to the market value

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

The investment advisory performance obligation is considered a series of distinct services that are

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

of assets held in the account.

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

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

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

11 unchanged sentences

The amount received after the plan is delivered is variably constrained due to factors outside the Company’s control including market volatility and client behavior.

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

Contract liabilities for financial planning fees, which are included in Other liabilities, were $ 156 million and $ 160 million as of September 30, 2023 and December 31, 2022, respectively.

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

Contract liabilities for financial planning fees, which are included in Other liabilities, were $ 167 million and $ 168 million as of March 31, 2024 and December 31, 2023, respectively.

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

1 unchanged sentence

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

Capitalized costs to obtain these contracts are reported in Other assets and were $ 126 million and $ 129 million as of September 30, 2023 and December 31, 2022, respectively.

Capitalized costs to obtain these contracts are reported in Other assets and were $ 133 million and $ 135 million as of March 31, 2024 and December 31, 2023, respectively.

Transaction and Other Fees

7 unchanged sentences

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

Contract liabilities for custodial service fees, which are included in Other liabilities, were $ 13 million and nil as of September 30, 2023 and December 31, 2022, respectively.

Contract liabilities for custodial service fees, which are included in Other liabilities, were $ 39 million and nil as of March 31, 2024 and December 31, 2023, respectively.

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

11 unchanged sentences

The Company earns revenue for providing unaffiliated partners an opportunity to educate the Company’s advisors or to support availability and distribution of their products on the Company’s platforms.

These payments allow the outside parties to train and support the advisors, explain the features of their products and distribute marketing and educational materials, and support trading and

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

The Company earns

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

operational systems necessary to enable the Company’s client servicing and production distribution efforts.

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

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

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

28 unchanged sentences

Contract Costs Asset

The Company has an asset of $ 27 million and $ 33 million as of September 30, 2023 and December 31, 2022, respectively, related to the transition of investment advisory services under an arrangement with BMO Financial Group for clients that elected to transfer U.S.

The Company has an asset of $ 23 million and $ 25 million as of March 31, 2024 and December 31, 2023, respectively, related to the transition of investment advisory services under an arrangement with BMO Financial Group for clients that elected to transfer U.S.

retail and institutional assets to the Company.

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

Receivables related to revenues from contracts with customers were $ 504 million and $ 537 million as of September 30, 2023 and December 31, 2022, respectively.

Receivables related to revenues from contracts with customers were $ 552 million and $ 537 million as of March 31, 2024 and December 31, 2023, respectively.

Variable Interest Entities

4 unchanged sentences

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

The Company has unfunded commitments related to consolidated CLOs of $ 24 million and $ 30 million as of September 30, 2023 and December 31, 2022, respectively.

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

Multiple tranches of debt securities are issued by a CLO, offering investors various maturity and credit risk

The Company has unfunded commitments related to consolidated CLOs of $ 24 million as of both March 31, 2024 and December 31, 2023.

Structured Investments

The Company invests in structured investments which are considered VIEs for which it is not the sponsor.

These structured investments typically invest in fixed income instruments and are managed by third parties and include asset backed securities and commercial and residential mortgage backed securities.

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

characteristics.

The Company has determined that it is not the primary beneficiary of these structures due to the size of the Company’s investment in the entities and position in the capital structure of these entities.

Additionally, the Company invests in CLOs for which it is the sponsor.

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

Multiple tranches of debt securities are issued by a CLO, offering investors various maturity and credit risk characteristics.

The debt securities issued by the CLOs are non-recourse to the Company.

6 unchanged sentences

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

The Company’s maximum exposure to loss with respect to non-consolidated CLOs is limited to its amortized cost, which was $ 1 million as of both September 30, 2023 and December 31, 2022.

The Company’s maximum exposure to loss with respect to structured investments and non-consolidated CLOs is limited to its amortized cost.

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

See Note 5 for additional information on these investments.

Property Funds

The Company provides investment advice and related services to property funds, some of which are considered VIEs.

Other Non-Consolidated VIEs

The Company’s investments in other non-consolidated VIEs are recorded in other investments.

The Company’s maximum exposure to loss with respect to its investments in these non-consolidated VIEs is limited to its carrying value.

The carrying value of other non-consolidated VIEs was $ 180 million and $ 168 million as of March 31, 2024 and December 31, 2023, respectively.

The Company’s liability related to original purchase commitments not yet remitted to the VIEs was not material as of both March 31, 2024 and December 31, 2023, respectively.

The Company has not provided any additional support to the VIEs beyond the funding commitments.

Property Funds, Non-U.S.

Series Funds, Hedge Funds and other Private Funds

The Company provides investment advice and other related services to property funds, non-U.S.

series funds, hedge funds and other private funds, some of which are considered VIEs.

For investment management services, the Company generally earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees.

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

The Company does not have a significant economic interest and is not required to consolidate any of the property funds.

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

The carrying value of the Company’s investment in property funds is reflected in other investments and was $ 63 million and $ 57 million as of September 30, 2023 and December 31, 2022, respectively.

Hedge Funds and other Private Funds

The Company does not consolidate hedge funds and other private funds which are sponsored by the Company and considered VIEs.

For investment management services, the Company earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees.

The fee arrangement is at market and commensurate with the level of effort required to provide those services and the Company does not have a significant economic interest in any fund.

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

The carrying value of the Company’s investment in these entities is reflected in other investments and was nil as of both September 30, 2023 and December 31, 2022.

The Company manages non-U.S.

series funds, which are considered VIEs.

For investment management services, the Company earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees.

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

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

The carrying value of the Company’s investment in these funds is reflected in other investments and was $ 30 million and $ 25 million as of September 30, 2023 and December 31, 2022, respectively.

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

The Company does not have a significant economic interest and is not required to consolidate any of these funds.

Affordable Housing Partnerships and Other Real Estate Partnerships

2 unchanged sentences

A majority of the limited partnerships are VIEs.

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

The carrying value is reflected in other investments and was $ 77 million and $ 92 million as of September 30, 2023 and December 31, 2022, respectively.

The Company had a liability of $ 6 million and $ 7 million as of September 30, 2023 and December 31, 2022, respectively, related to original purchase commitments not yet remitted to the VIEs.

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

Structured Investments

The Company invests in structured investments which are considered VIEs for which it is not the sponsor.

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

The Company’s maximum exposure to loss as a result of its investment in these structured investments is limited to its amortized cost.

See Note 6 for additional information on these structured investments.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Fair Value of Assets and Liabilities

1 unchanged sentence

See Note 12 for the definition of the three levels of the fair value hierarchy.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

September 30, 2023

March 31, 2024

Level 1 Level 2 Level 3 Total

5 unchanged sentences

Receivables — 25 — 25

Other assets — — — —

Total assets at fair value $ — $ 1,987 $ 66 $ 2,053

16 unchanged sentences

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

The estimated fair value of the CLOs’ debt was $ 2.2 billion and $ 2.4 billion as of September 30, 2023 and December 31, 2022, respectively.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The estimated fair value of the CLOs’ debt was $ 2.1 billion as of both March 31, 2024 and December 31, 2023.

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

Syndicated Loans

(in millions)

Balance at July 1, 2023

Settlements ( 1 )

Transfers into Level 3 22

Transfers out of Level 3 ( 38 )

Balance at September 30, 2023

Changes in unrealized gains (losses) included in net income relating to assets held at September 30, 2023

Common Stocks Syndicated Loans

(in millions)

Balance at July 1, 2022

Total gains (losses) included in:

Net income — ( 4 ) (1)

Purchases — 42

Sales — ( 3 )

Settlements — ( 1 )

Transfers into Level 3 — 61

Transfers out of Level 3 ( 2 ) ( 25 )

Balance at September 30, 2022

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

$ — $ ( 5 ) (1)

Syndicated Loans Other Assets

(in millions)

Balance at January 1, 2024

3 unchanged sentences

Transfers out of Level 3

Balance at March 31, 2024

Changes in unrealized gains (losses) included in net income relating to assets held at March 31, 2024

$ — $ ( 3 ) (1)

Balance at September 30, 2023

Changes in unrealized gains (losses) included in net income relating to assets held at September 30, 2023

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Common Stocks Syndicated Loans Other Assets

Syndicated Loans Other Assets

(in millions)

4 unchanged sentences

Transfers out of Level 3

( 2 ) ( 117 ) ( 3 )

Balance at September 30, 2022

$ — $ 165 $ —

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

$ — $ ( 5 ) (1) $ —

Balance at March 31, 2023

Changes in unrealized gains (losses) included in net income relating to assets held at March 31, 2023

(1) Included in Net investment income.

1 unchanged sentence

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

All Level 3 measurements as of September 30, 2023 and December 31, 2022 were obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company.

All Level 3 measurements as of March 31, 2024 and December 31, 2023 were obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company.

Determination of Fair Value

18 unchanged sentences

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

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

(in millions)

11 unchanged sentences

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

The estimated fair value of the CLOs’ debt was $ 2.2 billion and $ 2.4 billion as of September 30, 2023 and December 31, 2022, respectively.

The estimated fair value of the CLOs’ debt was $ 2.1 billion as of both March 31, 2024 and December 31, 2023.

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

1 unchanged sentence

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

Total net gains (losses) recognized in Net investment income related to the changes in fair value of investments the Company owns in the consolidated CLOs where it has elected the fair value option and collateralized financing entity accounting were immaterial for both the three and nine months ended September 30, 2023 and 2022.

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

Carrying Value Weighted Average Interest Rate

September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023

(in millions)

4 unchanged sentences

The following is a summary of Ameriprise Financial investments:

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

(in millions)

9 unchanged sentences

The following is a summary of Net investment income:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions)

1 unchanged sentence

Net realized gains (losses) 1 4

Affordable housing partnerships ( 5 ) ( 11 ) ( 8 ) ( 37 )

Consolidated investment entities 45 42

Other 112 51 311 110

Total $ 901 $ 698

(1) Prior period amount associated with affordable housing partnerships has been reclassified to Other to conform to current year presentation.

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

September 30, 2023

March 31, 2024

Description of Securities

22 unchanged sentences

Total $ 53,048 $ 615 $ ( 2,099 ) $ ( 2 ) $ 51,562

As of September 30, 2023 and December 31, 2022, accrued interest of $ 326 million and $ 237 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in Receivables.

As of September 30, 2023 and December 31, 2022, fixed maturity securities comprised approximately 93 % and 92 %, respectively, of Ameriprise Financial investments.

As of March 31, 2024 and December 31, 2023, accrued interest of $ 330 million and $ 319 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in Receivables.

As of both March 31, 2024 and December 31, 2023, fixed maturity securities comprised approximately 93 % of Ameriprise Financial investments.

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

1 unchanged sentence

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

As of September 30, 2023 and December 31, 2022, the Company’s internal analysts rated $ 278 million and $ 270 million, respectively, of securities using criteria similar to those used by NRSROs.

As of March 31, 2024 and December 31, 2023, the Company’s internal analysts rated $ 420 million and $ 282 million, respectively, of securities using criteria similar to those used by NRSROs.

AMERIPRISE FINANCIAL, INC.

1 unchanged sentence

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

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

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

7 unchanged sentences

Total fixed maturities $ 53,968 $ 52,246 100 % $ 53,048 $ 51,562 100 %

(1) The amortized cost of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $ 1 million as of both September 30, 2023 and December 31, 2022.

The fair value of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $ 1 million as of both September 30, 2023 and December 31, 2022.

(1) The amortized cost and fair value of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $ 1 million as of both March 31, 2024 and December 31, 2023.

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

As of September 30, 2023, approximately 82 % of securities rated AA were GNMA, FNMA and FHLMC mortgage backed securities.

These issuers were downgraded in the third quarter of 2023 from AAA to AA due to the downgrade of the U.S.

Government long-term credit rating.

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

No holdings of any issuer were greater than 10% of the Company’s total equity as of both September 30, 2023 and December 31, 2022.

As of March 31, 2024 and December 31, 2023, approximately 85 % and 83 % of securities rated AA were GNMA, FNMA and FHLMC mortgage backed securities, respectively.

No holdings of any issuer were greater than 10% of the Company’s total equity as of both March 31, 2024 and December 31, 2023.

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

Description of Securities September 30, 2023

Description of Securities March 31, 2024

Less than 12 Months 12 Months or More Total

24 unchanged sentences

Total 275 $ 6,944 $ ( 48 ) 1,556 $ 22,956 $ ( 2,051 ) 1,831 $ 29,900 $ ( 2,099 )

As part of the Company’s ongoing monitoring process, management determined that the increase in total gross unrealized losses on its Available-for-Sale securities for which an allowance for credit losses has not been recognized during the nine months ended September 30, 2023 is primarily attributable to the impact of higher interest rates.

As of September 30, 2023, the Company did not recognize these unrealized losses in earnings because it was determined that such losses were due to non-credit factors.

As part of the Company’s ongoing monitoring process, management determined that the increase in total gross unrealized losses on its Available-for-Sale securities for which an allowance for credit losses has not been recognized during the three months ended March 31, 2024 is primarily attributable to the impact of higher interest rates.

As of March 31, 2024, the Company did not recognize these unrealized losses in earnings because it was determined that such losses were due to non-credit factors.

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

As of September 30, 2023 and December 31, 2022, approximately 96 % and 95 %, respectively, of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade.

As of March 31, 2024 and December 31, 2023, approximately 97 % and 96 %, respectively, of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade.

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

1 unchanged sentence

(in millions)

Balance at July 1, 2023

Reductions for securities sold during the period (realized) ( 7 ) ( 1 ) ( 8 )

Balance at September 30, 2023

Balance at July 1, 2022

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

Balance at January 1, 2024

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

Balance at September 30, 2022

$ 20 $ 2 $ 22

Balance at March 31, 2024

Balance at January 1, 2023

$ 20 $ 2 $ 22

Reductions for securities sold during the period (realized) ( 20 ) ( 1 ) ( 21 )

Balance at September 30, 2023

Balance at January 1, 2022

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

Additional increases (decreases) on securities that had an allowance recorded in a previous period 3 — 3

Balance at September 30, 2022

Balance at March 31, 2023

$ 23 $ 2 $ 25

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions)

4 unchanged sentences

Total $ — $ 3

Previously recorded allowance for credit losses was reversed during the three and nine months ended September 30, 2023 primarily due to the sale of a corporate debt security in the communications industry.

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

Other impairments for the nine months ended September 30, 2023 and three and nine months ended September 30, 2022 related to Available-for-Sale securities which the Company intended to sell.

See Note 16 for rollforwards of net unrealized investment gains (losses) included in AOCI.

Available-for-Sale securities by contractual maturity as of September 30, 2023 were as follows:

1) No realized gains or losses on Available-for-Sale securities, including credit losses and other impairments, exceeded $ 1 million for the three months ended March 31, 2024.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Credit losses for the three months ended March 31, 2023 primarily related to recording an allowance for credit losses on a corporate debt security in the communications industry.

Other impairments for the three months ended March 31, 2023 related to Available-for-Sale securities which the Company intended to sell.

See Note 15 for a rollforward of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss) (“AOCI”).

Available-for-Sale securities by contractual maturity as of March 31, 2024 were as follows:

Amortized Cost Fair Value

22 unchanged sentences

Charge-offs ( 1 ) ( 1 ) ( 2 )

Balance at September 30, 2023

Balance at March 31, 2024

$ 51 $ 9 $ 60

3 unchanged sentences

Charge-offs ( 1 ) — ( 1 )

Balance at September 30, 2022

Balance at March 31, 2023

$ 52 $ 7 $ 59

As of September 30, 2023 and December 31, 2022, accrued interest on commercial loans was $ 19 million and $ 17 million, respectively, and is recorded in Receivables and excluded from the amortized cost basis of commercial loans.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

As of both March 31, 2024 and December 31, 2023, accrued interest on commercial loans was $ 19 million and is recorded in Receivables and excluded from the amortized cost basis of commercial loans.

Purchases and Sales

During the three months ended September 30, 2023 and 2022, the Company purchased $ 20 million and nil , respectively, of syndicated loans, and sold $ 1 million and nil , respectively, of syndicated loans.

During the nine months ended September 30, 2023 and 2022, the Company purchased $ 21 million and $ 57 million, respectively, of syndicated loans, and sold $ 4 million and $ 1 million, respectively, of syndicated loans.

During the three months ended September 30, 2023 and 2022, the Company purchased $ 49 million and $ 11 million, respectively, of residential mortgage loans.

During the nine months ended September 30, 2023 and 2022, the Company purchased $ 144 million and $ 34 million, respectively, of residential mortgage loans.

The allowance for credit losses for residential mortgage loans was not material as of both September 30, 2023 and December 31, 2022.

During the three months ended March 31, 2024 and 2023, the Company purchased nil and $ 1 million, respectively, of syndicated loans, and sold nil and $ 1 million, respectively, of syndicated loans.

During the three months ended March 31, 2024 and 2023, the Company purchased $ 36 million and $ 43 million, respectively, of residential mortgage loans.

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

Credit Quality Information

Nonperforming loans were $ 12 million and $ 11 million as of September 30, 2023 and December 31, 2022, respectively.

Nonperforming loans were $ 12 million as of both March 31, 2024 and December 31, 2023.

All other loans were considered to be performing.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Commercial Loans

3 unchanged sentences

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

Commercial mortgage loans which management has assigned its highest risk rating were less than 1 % of total commercial mortgage loans as of both September 30, 2023 and December 31, 2022.

Commercial mortgage loans which management has assigned its highest risk rating were less than 1 % of total commercial mortgage loans as of both March 31, 2024 and December 31, 2023.

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

There were no commercial mortgage loans past due as of both September 30, 2023 and December 31, 2022.

There were no commercial mortgage loans past due as of both March 31, 2024 and December 31, 2023.

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

September 30, 2023

March 31, 2024

Loan-to-Value Ratio 2024 2023 2022 2021 2020 Prior Total

16 unchanged sentences

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

For the nine months ended September 30, 2023, the Company did not have any write-offs of commercial mortgage loans.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

For the three months ended March 31, 2024, write-offs of commercial mortgage loans were not material.

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

2 unchanged sentences

Loans Percentage

September 30, 2023

March 31, 2024

December 31, 2023

September 30, 2023

March 31, 2024

December 31, 2023

10 unchanged sentences

$ 1,837 $ 1,832 100 % 100 %

allowance for credit losses 10 11

Total $ 1,813 $ 1,871

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

Loans Percentage

September 30, 2023

March 31, 2024

December 31, 2023

September 30, 2023

March 31, 2024

December 31, 2023

8 unchanged sentences

$ 1,837 $ 1,832 100 % 100 %

allowance for credit losses 10 11

$ 1,813 $ 1,871

Syndicated Loans

The investment in syndicated loans as of September 30, 2023 and December 31, 2022 was $ 160 million and $ 175 million, respectively.

The investment in syndicated loans as of March 31, 2024 and December 31, 2023 was $ 138 million and $ 145 million, respectively.

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

Syndicated loans past due were not material as of September 30, 2023 and no syndicated loans were past due as of December 31, 2022.

There were no syndicated loans past due as of March 31, 2024 and syndicated loans past due were not material as of December 31, 2023.

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

For the nine months ended September 30, 2023, the Company did not have any write-offs of syndicated loans.

For the three months ended March 31, 2024, write-offs of syndicated loans were not material.

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

September 30, 2023

March 31, 2024

Internal Risk Rating 2024 2023 2022 2021 2020 Prior Total

6 unchanged sentences

Total $ 17 $ 36 $ 3 $ 37 $ 9 $ 36 $ 138

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

December 31, 2023

10 unchanged sentences

Repayment of the loan is highly dependent on the retention of the financial advisor.

In the event a financial advisor is no longer affiliated with the Company, any unpaid balances become immediately due.

In the event a financial advisor is no longer affiliated with the Company, the unpaid balances generally become immediately due.

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

The allowance for credit losses related to loans to advisors that have terminated their relationship with the Company was $ 7 million and $ 6 million as of September 30, 2023 and December 31, 2022, respectively.

For the nine months ended September 30, 2023, write-offs of advisor loans were not material.

The allowance for credit losses related to loans to advisors that have terminated their relationship with the Company was $ 7 million as of both March 31, 2024 and December 31, 2023.

For the three months ended March 31, 2024, write-offs of advisor loans were not material.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

September 30, 2023

March 31, 2024

Termination Status 2024 2023 2022 2021 2020 Prior Total

10 unchanged sentences

Consumer Loans

Residential Mortgage Loans

The Company reviews the credit worthiness of the borrower in order to determine the risk of loss on residential mortgage loans.

Geographic location and FICO scores are the primary credit quality indicators included in the model that projects the Company’s risk of credit loss over the life of the residential mortgage loan portfolio.

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

Residential mortgage loans over 30 days past due were $ 3 million and $ 2 million as of March 31, 2024 and December 31, 2023, respectively.

For the three months ended March 31, 2024, write-offs of residential mortgage loans were not material.

The tables below present the amortized cost basis of residential mortgage loans by year of origination and FICO score:

FICO Score March 31, 2024

2023 2022 2021 2020 Total

(in millions)

$ — $ 10 $ 3 $ 2 $ 1 $ 16

14 64 29 8 6 121

8 85 26 8 5 132

3 16 6 4 — 29

Total $ 27 $ 191 $ 72 $ 29 $ 13 $ 332

December 31, 2023

2022 2021 2020 Total

(in millions)

$ 9 $ 3 $ 2 $ — $ 14

65 29 8 6 108

80 26 8 6 120

Total $ 184 $ 73 $ 29 $ 14 $ 300

The table below presents the concentrations of credit risk of residential mortgage loans by U.S.

March 31, 2024

December 31, 2023

March 31, 2024

December 31, 2023

(in millions)

$ 200 $ 178 60 % 59 %

132 122 40 41

Total $ 332 $ 300 100 % 100 %

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Credit Card Receivables

3 unchanged sentences

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

Credit card receivables over 30 days past due were 2 % and 1 % of total credit card receivables as of September 30, 2023 and December 31, 2022, respectively.

Credit card receivables over 30 days past due were 2 % of total credit card receivables as of both March 31, 2024 and December 31, 2023.

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

September 30, 2023

March 31, 2024

December 31, 2023

7 unchanged sentences

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The margin loans balance was $ 1.1 billion and $ 1.2 billion as of September 30, 2023 and December 31, 2022, respectively.

The margin loans balance was $ 1.0 billion and $ 1.1 billion as of March 31, 2024 and December 31, 2023, respectively.

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

As of both September 30, 2023 an d December 31, 2022, there was no allowance for credit losses on margin loans.

As of both March 31, 2024 an d December 31, 2023, there was no allowance for credit losses on margin loans.

Pledged Asset Lines of Credit

The pledged asset lines of credit balance was $ 523 million and $ 589 million as of September 30, 2023 and December 31, 2022, respectively.

The pledged asset lines of credit balance was $ 563 million and $ 537 million as of March 31, 2024 and December 31, 2023, respectively.

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

As of both September 30, 2023 and December 31, 2022 , there w as no allowance for credit losses on pledged asset lines of credit.

As of both March 31, 2024 and December 31, 2023 , there w as no allowance for credit losses on pledged asset lines of credit.

Deposit Receivables

Deposit receivables were $ 6.7 billion and $ 7.4 billion as of September 30, 2023 and December 31, 2022 , respectively.

Deposit receivables were $ 6.3 billion and $ 6.5 billion as of March 31, 2024 and December 31, 2023 , respectively.

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

Based on management’s evaluation of the collateral value relative to the deposit receivables, the allowance for credit losses for deposit receivables was not material as of both September 30, 2023 and December 31, 2022.

Modifications with Borrowers Experiencing Financial Difficulty

Modifications of financing receivables with borrowers experiencing financial difficulty by the Company were not material during the three and nine months ended September 30, 2023.

Deferred Acquisition Costs and Deferred Sales Inducement Costs

The following tables summarize the balances of and changes in DAC, including the January 1, 2021 adoption of ASU 2018-12:

Variable Annuities Structured Variable Annuities Fixed Annuities Fixed Indexed Annuities Universal Life Insurance Variable Universal Life Insurance

(in millions)

Pre-adoption balance at December 31, 2020 $ 1,690 $ 22 $ 43 $ 7 $ 100 $ 452

Effect of shadow reserve adjustments 42 4 18 1 31 53

Post-adoption balance at January 1, 2021 1,732 26 61 8 131 505

Capitalization of acquisition costs 111 71 — — 3 54

Amortization ( 147 ) ( 6 ) ( 8 ) ( 1 ) ( 9 ) ( 47 )

Balance at December 31, 2021 $ 1,696 $ 91 $ 53 $ 7 $ 125 $ 512

Indexed Universal Life Insurance Other Life Insurance Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Total,

(in millions)

Pre-adoption balance at December 31, 2020 $ 108 $ ( 3 ) $ — $ 19 $ 89 $ 2,527

Effect of shadow reserve adjustments 149 6 — — — 304

Post-adoption balance at January 1, 2021 257 3 — 19 89 2,831

Capitalization of acquisition costs 9 — 1 2 4 255

Amortization ( 18 ) — — ( 2 ) ( 9 ) ( 247 )

Balance at December 31, 2021 $ 248 $ 3 $ 1 $ 19 $ 84 $ 2,839

Other broker dealer acquisition costs 5

Balance at December 31, 2021 including broker dealer acquisition costs $ 2,844

Modifications of financing receivables with borrowers experiencing financial difficulty by the Company were not material for the three months ended March 31, 2024 and 2023.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Deferred Acquisition Costs and Deferred Sales Inducement Costs

The following tables summarize the balances of and changes in deferred acquisition costs (“DAC”):

Variable Annuities Structured Variable Annuities Fixed Annuities Fixed Indexed Annuities Universal Life Insurance Variable Universal Life Insurance

4 unchanged sentences

Amortization ( 30 ) ( 7 ) ( 2 ) — ( 2 ) ( 11 )

Balance at December 31, 2022

Balance at March 31, 2024

$ 1,472 $ 226 $ 33 $ 5 $ 108 $ 536

Indexed Universal Life Insurance Other Life Insurance Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Total,

Indexed Universal Life Insurance Other Life Insurance Life Contingent Payout Annuities Term and Whole Life Insurance Disability Income Insurance

(in millions)

3 unchanged sentences

Amortization ( 4 ) — — — ( 3 ) ( 59 )

Balance at December 31, 2022

Balance at March 31, 2024

$ 220 $ 2 $ 7 $ 17 $ 73 $ 2,699

Other broker dealer acquisition costs 2

Balance at December 31, 2022 including broker dealer acquisition costs

Balance at March 31, 2024 including broker dealer acquisition costs

Variable Annuities Structured Variable Annuities Fixed Annuities Fixed Indexed Annuities Universal Life Insurance Variable Universal Life Insurance

4 unchanged sentences

Amortization ( 125 ) ( 24 ) ( 10 ) ( 1 ) ( 8 ) ( 44 )

Balance at September 30, 2023

Balance at December 31, 2023

$ 1,496 $ 208 $ 35 $ 5 $ 110 $ 534

Indexed Universal Life Insurance Other Life Insurance Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Total,

Indexed Universal Life Insurance Other Life Insurance Life Contingent Payout Annuities Term and Whole Life Insurance Disability Income Insurance

(in millions)

3 unchanged sentences

Amortization ( 17 ) ( 1 ) — ( 2 ) ( 8 ) ( 240 )

Balance at September 30, 2023

Balance at December 31, 2023

$ 223 $ 2 $ 6 $ 17 $ 75 $ 2,711

Other broker dealer acquisition costs 2

Balance at September 30, 2023 including broker dealer acquisition costs

The following tables summarize the balances of and changes in DSIC, including the January 1, 2021 adoption of ASU 2018-12:

Variable Annuities Fixed Annuities Total,

(in millions)

Pre-adoption balance at December 31, 2020 $ 175 $ 14 $ 189

Effect of shadow reserve adjustments 8 8 16

Post-adoption balance at January 1, 2021 183 22 205

Capitalization of sales inducement costs 1 — 1

Amortization ( 18 ) ( 3 ) ( 21 )

Balance at December 31, 2021 $ 166 $ 19 $ 185

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Balance at December 31, 2023 including broker dealer acquisition costs

The following tables summarize the balances of and changes in deferred sales inducement costs (“DSIC”):

Variable Annuities Fixed Annuities Total,

2 unchanged sentences

$ 136 $ 12 $ 148

Capitalization of sales inducement costs 1 — 1

Amortization ( 3 ) ( 1 ) ( 4 )

Balance at December 31, 2022

Balance at March 31, 2024

$ 133 $ 11 $ 144

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Variable Annuities Fixed Annuities Total,

3 unchanged sentences

Amortization ( 15 ) ( 4 ) ( 19 )

Balance at September 30, 2023

Balance at December 31, 2023

$ 136 $ 12 $ 148

1 unchanged sentence

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

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

(in millions)

12 unchanged sentences

A vast majority of the premiums received for variable annuity contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders.

Most of the variable annuity contracts issued by the Company contain a GMDB.

The Company previously offered contracts with GMAB, GMWB, and GMIB provisions.

See Note 2 and Note 11 for additional information regarding the Company’s variable annuity guarantees.

Most of the variable annuity contracts issued by the Company contain a guaranteed minimum death benefit (“GMDB”).

The Company previously offered contracts with guaranteed minimum accumulation benefit (“GMAB”), guaranteed minimum withdrawal benefit (“GMWB”), and guaranteed minimum income benefit (“GMIB”) provisions.

See Note 10 for additional information regarding the Company’s variable annuity guarantees.

See Note 12 and Note 14 for additional information regarding the Company’s derivative instruments used to hedge risks related to these guarantees.

10 unchanged sentences

The Company’s fixed index annuity product is a fixed annuity that includes an indexed account.

The rate of interest credited above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the specific index for the indexed

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

account (subject to a cap).

The rate of interest credited above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the specific index for the indexed account (subject to a cap).

The amount allocated by a contractholder to the indexed account creates an embedded derivative which is measured at fair value.

See Note 14 for additional information regarding the Company’s derivative instruments used to hedge the risk related to indexed accounts.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Insurance Liabilities

Purchasers of UL accumulate cash value that increases by a fixed interest rate.

Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion of their account balance to a fixed account or a separate account.

Universal life (“UL”) policies accumulate cash value that increases by a fixed interest rate.

Purchasers of variable universal life (“VUL”) can select from a variety of investment options and can elect to allocate a portion of their account balance to a fixed account or a separate account.

A vast majority of the premiums received for VUL policies are held in separate accounts where the assets are held for the exclusive benefit of those policyholders.

IUL is a UL policy that includes an indexed account.

Indexed universal life (“IUL”) is a UL policy that includes an indexed account.

The rate of credited interest for funds allocated by a contractholder to the indexed account is linked to the performance of the specific index for the indexed account (subject to stated account parameters, which include a cap and floor, or a spread).

3 unchanged sentences

See Note 14 for additional information regarding the Company’s derivative instruments used to hedge the risk related to IUL.

The Company also offers term life insurance as well as DI products.

The Company no longer offers standalone LTC products and whole life insurance but has in force policies from prior years.

The Company also offers term life insurance as well as disability income (“DI”) insurance products.

The Company no longer offers standalone long term care (“LTC”) insurance products and whole life insurance but has in force policies from prior years.

Insurance liabilities include accumulation values, incurred but not reported claims, obligations for anticipated future claims, unpaid reported claims and claim adjustment expenses.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The balances of and changes in policyholder account balances were as follows:

7 unchanged sentences

Net transfer from (to) separate account liabilities ( 7 ) — — — —

Other variable account adjustments — 602 — — —

Variable account index-linked adjustments

Interest credited 32 — 52 4 3

Balance at September 30, 2023

Balance at March 31, 2024

$ 4,024 $ 12,327 $ 5,801 $ 307 $ 449

10 unchanged sentences

Net transfer from (to) separate account liabilities — ( 19 ) — — ( 26 )

Other variable account adjustments — — — — 602

Variable account index-linked adjustments

Interest credited 12 15 37 4 159

Balance at September 30, 2023

Balance at March 31, 2024

$ 1,458 $ 1,583 $ 2,789 $ 491 $ 29,229

13 unchanged sentences

Net transfer from (to) separate account liabilities ( 25 ) — — — —

Other variable account adjustments — ( 791 ) — — —

Variable account index-linked adjustments

— 1,403 — — —

Interest credited 142 1 222 5 9

12 unchanged sentences

Net transfer from (to) separate account liabilities — ( 107 ) — — ( 132 )

Other variable account adjustments — — — — ( 791 )

Variable account index-linked adjustments

— — — — 1,403

Interest credited 52 56 82 20 589

7 unchanged sentences

For variable annuities and VUL, the cash surrender value shown is the proportion of the total cash surrender value related to their fixed account liabilities.

Refer to Note 11 for the net amount at risk for market risk benefits associated with variable and structured variable annuities.

Refer to Note 10 for the net amount at risk for market risk benefits (“MRB”) associated with variable and structured variable annuities.

Fixed, fixed indexed, and non-life contingent payout annuities do not have net amount at risk in excess of account value.

2 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following tables present the account values of fixed deferred annuities, fixed insurance, and the fixed portion of variable annuities and variable insurance contracts by range of guaranteed minimum interest rates (“GMIRs”) and the range of the difference between rates credited to policyholders and contractholders as of September 30, 2023 and December 31, 2022 and the respective guaranteed minimums, as well as the percentage of account values subject to rate reset in the time period indicated.

The following tables present the account values of fixed deferred annuities, fixed insurance, and the fixed portion of variable annuities and variable insurance contracts by range of guaranteed minimum interest rates (“GMIRs”) and the range of the difference between rates credited to policyholders and contractholders as of March 31, 2024 and December 31, 2023 and the respective guaranteed minimums, as well as the percentage of account values subject to rate reset in the time period indicated.

Rates are reset at management’s discretion, subject to guaranteed minimums.

September 30, 2023

March 31, 2024

Account Values with Crediting Rates

135 unchanged sentences

Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

The following tables summarize the balances of and changes in the liability for future policy benefits, including the January 1, 2021 adoption of ASU 2018-12:

Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Long Term Care Insurance Total, All Products

(in millions)

Pre-adoption balance at December 31, 2020 $ 1,536 $ 633 $ 530 $ 5,749 $ 8,448

Effect of shadow reserve adjustments ( 175 ) — — ( 566 ) ( 741 )

Adjustments for loss contracts (with premiums in excess of gross premiums) under the modified retrospective approach 4 — — 35 39

Effect of change in deferred profit liability ( 43 ) — — — ( 43 )

Effect of remeasurement of the liability at the current single A discount rate 215 265 238 1,965 2,683

Post-adoption balance at January 1, 2021 1,537 898 768 7,183 10,386

reinsurance recoverable — 601 24 3,623 4,248

Post-adoption balance at January 1, 2021, after

reinsurance recoverable $ 1,537 $ 297 $ 744 $ 3,560 $ 6,138

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Long Term Care Insurance Total,

(in millions, except percentages)

Present Value of Expected Net Premiums:

Balance at January 1, 2021 $ — $ 702 $ 238 $ 1,831 $ 2,771

Beginning balance at original discount rate — 536 183 1,498 2,217

Effect of changes in cash flow assumptions — — — ( 6 ) ( 6 )

Effect of actual variances from expected experience — 56 ( 35 ) ( 61 ) ( 40 )

Adjusted beginning of year balance $ — $ 592 $ 148 $ 1,431 $ 2,171

Issuances 38 78 18 — 134

Interest accrual — 29 9 73 111

Net premiums collected ( 38 ) ( 63 ) ( 20 ) ( 184 ) ( 305 )

Derecognition (lapses) — — — — —

Ending balance at original discount rate $ — $ 636 $ 155 $ 1,320 $ 2,111

Effect of changes in discount rate assumptions — 141 33 227 401

Balance at December 31, 2021 $ — $ 777 $ 188 $ 1,547 $ 2,512

Present Value of Future Policy Benefits:

Balance at January 1, 2021 $ 1,537 $ 1,600 $ 1,006 $ 9,014 $ 13,157

Beginning balance at original discount rate 1,321 1,169 714 6,716 9,920

Effect of changes in cash flow assumptions — — — ( 8 ) ( 8 )

Effect of actual variances from expected experience ( 14 ) 58 ( 40 ) ( 124 ) ( 120 )

Adjusted beginning of year balance $ 1,307 $ 1,227 $ 674 $ 6,584 $ 9,792

Issuances 39 78 18 — 135

Interest accrual 53 70 39 347 509

Benefit payments ( 168 ) ( 120 ) ( 43 ) ( 336 ) ( 667 )

Derecognition (lapses) — — — — —

Ending balance at original discount rate $ 1,231 $ 1,255 $ 688 $ 6,595 $ 9,769

Effect of changes in discount rate assumptions 139 343 226 1,755 2,463

Balance at December 31, 2021 $ 1,370 $ 1,598 $ 914 $ 8,350 $ 12,232

Adjustment due to reserve flooring $ — $ 1 $ — $ — $ 1

Net liability for future policy benefits $ 1,370 $ 822 $ 726 $ 6,803 $ 9,721

reinsurance recoverable 1,265 558 25 3,443 5,291

Net liability for future policy benefits, after reinsurance recoverable $ 105 $ 264 $ 701 $ 3,360 $ 4,430

Discounted expected future gross premiums $ — $ 2,005 $ 1,158 $ 1,623 $ 4,786

Expected future gross premiums $ — $ 2,815 $ 1,395 $ 1,905 $ 6,115

Expected future benefit payments $ 1,707 $ 2,159 $ 1,217 $ 11,568 $ 16,651

Weighted average interest accretion rate 4.2 % 6.5 % 5.9 % 5.3 %

Weighted average discount rate 2.6 % 2.8 % 2.8 % 2.9 %

Weighted average duration of liability (in years) 7 8 9 10

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Long Term Care Insurance Total,

The following tables summarize the balances of and changes in the liability for future policy benefits:

Life Contingent Payout Annuities Term and Whole Life Insurance Disability Income Insurance

Long Term Care Insurance Total,

(in millions, except percentages)

12 unchanged sentences

Effect of changes in discount rate assumptions — ( 18 ) ( 3 ) ( 6 ) ( 27 )

Balance at December 31, 2022

Balance at March 31, 2024

$ — $ 695 $ 99 $ 1,105 $ 1,899

12 unchanged sentences

Effect of changes in discount rate assumptions ( 75 ) 6 26 ( 83 ) ( 126 )

Balance at December 31, 2022

Balance at March 31, 2024

$ 1,180 $ 1,295 $ 642 $ 6,395 $ 9,512

11 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Long Term Care Insurance Total,

Life Contingent Payout Annuities Term and Whole Life Insurance Disability Income Insurance

Long Term Care Insurance Total,

(in millions, except percentages)

12 unchanged sentences

Effect of changes in discount rate assumptions — ( 5 ) ( 1 ) 9 3

Balance at September 30, 2023

Balance at December 31, 2023

$ — $ 703 $ 104 $ 1,146 $ 1,953

12 unchanged sentences

Effect of changes in discount rate assumptions ( 58 ) 34 40 54 70

Balance at September 30, 2023

Balance at December 31, 2023

$ 1,164 $ 1,325 $ 661 $ 6,561 $ 9,711

9 unchanged sentences

Weighted average duration of liability (in years) 7 7 8 8

The annual review of LTC future policy benefit reserves in the third quarter of 2023 resulted in assumption updates that decreased the net liability for future policy benefits by $ 9 million, partially offset by a $ 4 million decrease to reinsurance recoverable, primarily reflecting updates to premium rate increase assumptions.

The annual review of LTC future policy benefit reserves in the third quarter

Impacts of the annual review of policy benefit reserves assumptions are reflected within the effect of changes in cash flow assumptions in the disaggregated rollforwards above.

The annual review of policy benefit reserves assumptions in the third quarter of 2023 resulted in a net decrease in future policy benefit reserves, primarily due to updates to LTC premium rate increase assumptions.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

of 2022 resulted in assumption updates that decreased the net liability for future policy benefits by $ 10 million, partially offset by a $ 4 million decrease to reinsurance recoverable, primarily reflecting updates to morbidity, premium rate increase and benefit reduction assumptions.

The annual review of disability insurance future policy benefit reserves in the third quarter of 2023 resulted in assumption updates that decreased the net liability for future policy benefits by $ 6 million, offset by a $ 1 million decrease to reinsurance recoverable, primarily reflecting updates to claim termination assumptions.

The annual review of term life insurance future policy benefit reserves in the third quarter of 2023 resulted in assumption updates that increased the net liability for future policy benefits by $ 2 million, offset by a $ 2 million increase to reinsurance recoverable, reflecting updates to lapse assumptions.

The annual review of term life insurance future policy benefit reserves in the third quarter of 2022 resulted in assumption updates that decreased the net liability for future policy benefits $ 9 million, offset by a $ 16 million decrease to reinsurance recoverable, reflecting updates to lapse assumptions.

Receivables included $ 4.0 billion and $ 4.2 billion of reinsurance recoverables as of September 30, 2023 and December 31, 2022, respectively, including $ 2.5 billion and $ 2.7 billion related to LTC risk ceded to Genworth as of September 30, 2023 and December 31, 2022, respectively.

The balances of and changes in additional liabilities related to insurance guarantees were as follows:

8 unchanged sentences

Impact of change in net unrealized (gains) losses on securities ( 9 ) — ( 2 ) ( 11 )

Balance at September 30, 2023

Balance at March 31, 2024

$ 1,242 $ 81 $ 13 $ 1,336

16 unchanged sentences

Weighted average duration of reserves (in years) 10 8 6

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The amount of revenue and interest recognized in the Statement of Operations was as follows:

Nine Months Ended September 30,

The amount of revenue and interest recognized in the Statements of Operations was as follows:

Three Months Ended March 31,

Gross Premiums Interest Expense

2 unchanged sentences

Term and whole life insurance 42 9

Disability insurance 93 24

Disability income insurance

Long term care insurance 44 67

Total $ 182 $ 98

Years Ended December 31,

Gross Premiums Interest Expense Gross Premiums Interest Expense

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Year Ended December 31,

Gross Premiums Interest Expense

(in millions)

1 unchanged sentence

Term and whole life insurance 169 37

Disability insurance 127 31 131 30

Disability income insurance

Long term care insurance 185 270

Total $ 674 $ 388

The following tables summarize the balances of and changes in unearned revenue, including the January 1, 2021 adoption of ASU 2018-12:

The following tables summarize the balances of and changes in unearned revenue:

Universal Life Insurance Variable Universal Life Insurance Indexed Universal Life Insurance Total,

(in millions)

Pre-adoption balance at December 31, 2020 $ 19 $ 76 $ — $ 95

Effect of shadow reserve adjustments 5 10 153 168

Post-adoption balance at January 1, 2021 24 86 153 263

Deferral of revenue 3 34 55 92

Amortization ( 1 ) ( 8 ) ( 13 ) ( 22 )

Balance at December 31, 2021 $ 26 $ 112 $ 195 $ 333

Balance at January 1, 2024

2 unchanged sentences

Amortization — ( 4 ) ( 5 ) ( 9 )

Balance at December 31, 2022

Balance at March 31, 2024

$ 27 $ 208 $ 274 $ 509

3 unchanged sentences

Amortization ( 1 ) ( 13 ) ( 19 ) ( 33 )

Balance at September 30, 2023

Balance at December 31, 2023

$ 27 $ 196 $ 266 $ 489

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Separate Account Assets and Liabilities

Aggregate fair value of separate account assets, by major asset category, consisted of the following:

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

(in millions)

Variable annuities and variable universal life:

Mutual funds $ 77,039 $ 74,634

Unitized pooled pension funds:

Property/real estate 1,737 1,784

3 unchanged sentences

Total $ 79,753 $ 77,457

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The balances of and changes in separate account liabilities were as follows:

Variable Annuities Variable Universal Life Threadneedle Investment Liabilities Total

Variable Annuities Variable Universal Life Unitized Pooled Pension Funds

(in millions)

7 unchanged sentences

Other charges — — ( 27 ) ( 27 )

Balance at September 30, 2023

Balance at March 31, 2024

$ 67,691 $ 9,348 $ 2,714 $ 79,753

Cash surrender value $ 66,167 $ 8,793 $ 2,714 $ 77,674

Variable Annuities Variable Universal Life Threadneedle Investment Liabilities Total

Variable Annuities Variable Universal Life Unitized Pooled Pension Funds

(in millions)

14 unchanged sentences

The Company previously offered contracts containing GMWB, GMAB, or GMIB provisions.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The GMDB provisions provide a specified minimum return upon death of the contractholder.

7 unchanged sentences

At contract issue, the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually to the account value (a “step-up”) in the case of favorable market performance or by a benefit credit if the contract includes this provision.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The Company has GMWB riders in force, which contain one or more of the following provisions:

13 unchanged sentences

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

The following tables summarize the balances of and changes in market risk benefits, including the January 1, 2021 adoption of ASU 2018-12:

(in millions)

Pre-adoption balance at December 31, 2020 $ 3,084

Effect of shadow reserve adjustments ( 3 )

Adjustments for the cumulative effect of the changes in instrument-specific credit risk on market risk benefits between the original contract issuance date and the transition date 670

Adjustments to the host contract for differences between previous carrying amount and fair value measurement for the market risk benefits under the option-based method of valuation 20

Adjustments for the remaining difference (exclusive of the instrument-specific credit risk change and host contract adjustments) between previous carrying amount and fair value measurements for the market risk benefits 1,058

Post-adoption balance at January 1, 2021 $ 4,829

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Years Ended December 31,

The following tables summarize the balances of and changes in market risk benefits:

Three Months Ended March 31,

(in millions, except age)

8 unchanged sentences

Actual policyholder behavior different from expected behavior 31 7

Effect of changes in other future expected assumptions ( 139 ) 123

Effect of changes in the instrument-specific credit risk on market risk benefits 48 ( 204 )

13 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Three Months Ended September 30,

Nine Months Ended September 30,

Year Ended December 31,

(in millions, except age)

Balance at beginning of period $ 1,103

Issuances 5 6 13 22

Interest accrual and time decay ( 53 )

20 unchanged sentences

The following tables provide a summary of the significant inputs and assumptions used in the fair value measurements developed by the Company or reasonably available to the Company of market risk benefits:

September 30, 2023

March 31, 2024

Fair Value Valuation Technique Significant Inputs and Assumptions Range Weighted

10 unchanged sentences

0.0 % – 41.6 % 1.6 %

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

December 31, 2023

11 unchanged sentences

0.0 % – 41.6 % 1.6 %

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

(1) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year.

8 unchanged sentences

Changes to Significant Inputs and Assumptions:

During the nine months ended September 30, 2023 and year ended December 31, 2022, the Company updated inputs and assumptions based on management’s review of experience studies.

During the year ended December 31, 2023, the Company updated inputs and assumptions based on management’s review of experience studies.

These updates resulted in the following notable changes in the fair value estimates of market risk benefits calculations:

Nine months ended September 30, 2023

• Updates to utilization of guaranteed withdrawals assumptions resulted in a decrease to pre-tax income of $ 18 million.

• Updates to surrender assumptions resulted in a decrease to pre-tax income of $ 110 million.

Year ended December 31, 2023

1 unchanged sentence

• Updates to surrender assumptions resulted in a decrease to pre-tax income of $ 110 million.

• Updates to mortality assumptions resulted in a decrease to pre-tax income of $ 49 million.

Refer to the rollforward of market risk benefits for the impacts of changes to interest rate, equity market, volatility and nonperformance risk assumptions.

2 unchanged sentences

Significant increases (decreases) in nonperformance risk and surrender assumptions used in the fair value measurement of market risk benefits in isolation would have resulted in a significantly lower (higher) liability value.

Significant increases (decreases) in mortality assumptions used in the fair value measurement of the death benefit portion of market risk benefits in isolation would have resulted in a significantly higher (lower) liability value whereas significant increases (decreases) in mortality rates used in the fair values measurement of the life contingent portion of market risk benefits in isolation would have resulted in a significantly lower (higher) liability value.

Significant increases (decreases) in mortality assumptions used in the fair value measurement of the death benefit portion of market risk benefits in isolation would have resulted in a significantly higher (lower) liability value whereas significant increases (decreases) in mortality rates used in the fair value measurement of the life contingent portion of market risk benefits in isolation would have resulted in a significantly lower (higher) liability value.

Surrender assumptions, utilization assumptions and mortality assumptions vary with the type of base product, type of rider, duration of the policy, age of the contractholder, calendar year of the projection, previous withdrawal history, and the relationship between the value of the guaranteed benefit and the contract accumulation value.

1 unchanged sentence

The Company values market risk benefits using internal valuation models.

These models include observable capital market assumptions and significant unobservable inputs related to implied volatility as well as contractholder behavior assumptions that include margins for risk, all of which the Company believes a market participant would expect.

The fair value also reflects a current estimate of the Company’s nonperformance risk.

Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3.

These models include observable capital market assumptions and significant unobservable inputs related to implied volatility, contractholder behavior assumptions that include margins for risk, and the Company’s nonperformance risk.

These measurements are classified as Level 3.

AMERIPRISE FINANCIAL, INC.

2 unchanged sentences

Outstanding Balance Stated Interest Rate

September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023

(in millions)

4 unchanged sentences

Senior notes due 2028

600 600 5.7 5.7

Senior notes due 2032 500 500 4.5 4.5

10 unchanged sentences

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

On March 9, 2023, the Company issued $ 750 million of 5.15 % unsecured senior notes due May 15, 2033 and incurred debt issuance costs of $ 7 million.

Interest payments are due semi-annually in arrears on May 15 and November 15, which commences on November 15, 2023.

On October 16, 2023, the Company repaid $ 750 million principal amount of its 4.0 % senior notes at maturity.

Short-Term Borrowings

The Company’s life insurance and bank subsidiaries are members of the FHLB of Des Moines which provides access to collateralized borrowings.

As of September 30, 2023 and December 31, 2022, the Company’s life insurance subsidiary had accessed collateralized borrowings and pledged (granted a lien on) certain investments, primarily commercial mortgage backed securities, with an aggregate fair value of $ 994 million and $ 962 million, respectively.

The remaining maturity of outstanding FHLB advances was less than three months as of both September 30, 2023 and December 31, 2022.

The Company’s life insurance subsidiary has accessed collateralized borrowings from the FHLB and has pledged (granted a lien on) certain investments as collateral, primarily commercial mortgage backed securities, with an aggregate fair value of $ 1.1 billion as of both March 31, 2024 and December 31, 2023.

The remaining maturity of outstanding FHLB advances was less than three months as of both March 31, 2024 and December 31, 2023.

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

The Company’s bank subsidiary had no outstanding obligations to the FHLB as of both September 30, 2023 and December 31, 2022.

The Company’s bank subsidiary had no outstanding obligations to the FHLB as of both March 31, 2024 and December 31, 2023.

The Company’s bank subsidiary maintains access to collateralized borrowings from the Federal Reserve.

As of both September 30, 2023 and December 31, 2022, there were no outstanding obligations to the Federal Reserve.

As of both March 31, 2024 and December 31, 2023, there were no outstanding obligations to the Federal Reserve.

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

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

Prior to June 21, 2023, the interest rate for any borrowing under the agreement was established by reference to London Interbank Offered Rate (“LIBOR”) for U.S.

dollar deposits with maturities comparable to the relevant interest period, plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt of the Company with an integrated hardwired approach to a fallback interest rate with certain hardwired credit spread adjustments.

On June 21, 2023, in anticipation of the end of the publication of U.S.

dollar LIBOR, an amendment to the agreement changed the interest rate from LIBOR for U.S.

dollars to a Spread Adjusted Term Secured Overnight Financing Rate (“SOFR”), which is defined as Term SOFR for an interest period selected by the Company plus a credit spread adjustment of 0.10 %, plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt of the Company.

The interest rate for any borrowing under the agreement for U.S.

dollars is a Spread Adjusted Term Secured Overnight Financing Rate (“SOFR”), which is defined as Term SOFR for an interest period selected by the Company plus a credit spread adjustment of 0.10 %, plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt of the Company.

In the event of default, an additional 2 % interest will accrue during such period of default.

As of both September 30, 2023 and December 31, 2022, the Company had no borrowings outstanding and $ 1 million of letters of credit issued against the facility.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

The Company was in compliance with all such covenants as of both September 30, 2023 and December 31, 2022.

As of both March 31, 2024 and December 31, 2023, the Company had no borrowings outstanding and $ 1 million of letters of credit issued against the facility.

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

The Company was in compliance with all such covenants as of both March 31, 2024 and December 31, 2023.

American Enterprise Investment Services, Inc.

(“AEIS”), a subsidiary of the Company, has credit agreements for uncommitted lines of credit with third party financial institutions, having a combined credit limit of $ 500 million.

As of both September 30, 2023 and December 31, 2022, AEIS had no borrowings outstanding.

As of both March 31, 2024 and December 31, 2023, AEIS had no borrowings outstanding.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Fair Values of Assets and Liabilities

13 unchanged sentences

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

September 30, 2023

March 31, 2024

Level 1 Level 2 Level 3 Total

20 unchanged sentences

Equity derivative contracts 92 6,731 — 6,823

Credit derivative contracts — 95 — 95

Foreign exchange derivative contracts — 25 — 25

62 unchanged sentences

(2) See Note 10 for additional information related to market risk benefits, including the balances of and changes in market risk benefits as well as the significant inputs and assumptions used in the fair value measurements of market risk benefits.

(3) The Company’s adjustment for nonperformance risk resulted in a $ 184 million cumulative decrease to the embedded derivatives as of September 30, 2023.

(3) The Company’s adjustment for nonperformance risk resulted in a $ 197 million cumulative decrease to the embedded derivatives as of March 31, 2024.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

(4) The fair value of the structured variable annuity embedded derivatives was a net asset as of December 31, 2022 and the amount is presented as a contra liability.

(4) The Company’s adjustment for nonperformance risk resulted in a $ 195 million cumulative decrease to the embedded derivatives as of December 31, 2023.

1 unchanged sentence

Available-for-Sale Securities Receivables

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

(in millions)

Balance at July 1, 2023

$ 446 $ 3 $ 449 $ 49

Total gains (losses) included in:

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

Purchases 36 — 36 —

Settlements ( 18 ) — ( 18 ) ( 1 )

Balance at September 30, 2023

$ 461 $ 3 $ 464 $ 48

Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at September 30, 2023

$ ( 4 ) $ — $ ( 4 ) $ —

Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities

Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total

(in millions)

Balance at July 1, 2023

$ 46 $ 809 $ 557 $ 1,412 $ 78

Total (gains) losses included in:

Net income — (2) 2 (2) ( 246 ) (3) ( 244 ) — (4)

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

Issues — 6 35 41 7

Settlements ( 1 ) ( 30 ) ( 46 ) ( 77 ) ( 7 )

Balance at September 30, 2023

$ 45 $ 787 $ 300 $ 1,132 $ 77

Changes in unrealized (gains) losses in net income relating to liabilities held at September 30, 2023

$ ( 246 ) (3)

$ ( 244 ) $ —

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Available-for-Sale Securities Receivables

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

(in millions)

Balance at July 1, 2022

Balance at January 1, 2024

$ 469 $ — $ 1 $ 470 $ 51

4 unchanged sentences

Settlements ( 13 ) — — ( 13 ) ( 1 )

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

Balance at September 30, 2022

Balance at March 31, 2024

$ 505 $ 25 $ 1 $ 531 $ 54

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

Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at March 31, 2024

$ ( 3 ) $ — $ — $ ( 3 ) $ —

2 unchanged sentences

(in millions)

Balance at July 1, 2022

Balance at January 1, 2024

$ 49 $ 873 $ 1,011 $ 1,933 $ 76

1 unchanged sentence

Net income 4 (2) 42 (2) 628 (3) 674 — (4)

Other comprehensive income (loss) — — — — ( 2 )

Issues — 6 37 43 3

Settlements ( 1 ) ( 33 ) ( 56 ) ( 90 ) ( 8 )

Balance at September 30, 2022

$ 43 $ 689 $ ( 513 ) (5) $ 219 $ 63

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

$ — $ ( 22 ) (2)

$ ( 173 ) (3)

Balance at March 31, 2024

$ 52 $ 888 $ 1,620 $ 2,560 $ 71

Changes in unrealized (gains) losses in net income relating to liabilities held at March 31, 2024

Available-for-Sale Securities Receivables

4 unchanged sentences

Total gains (losses) included in:

Net income — — — (1) 2

Other comprehensive income (loss) 8 — 8 —

1 unchanged sentence

Settlements ( 28 ) ( 1 ) ( 29 ) —

Balance at September 30, 2023

Balance at March 31, 2023

$ 440 $ 5 $ 445 $ 48

Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at September 30, 2023

Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at March 31, 2023

$ 8 $ — $ 8 $ —

8 unchanged sentences

Net income 1 (2) 38 (2) 263 (3) 302 — (4)

Issues — 46 66 112 40

Settlements ( 2 ) ( 92 ) ( 72 ) ( 166 ) ( 26 )

Balance at September 30, 2023

$ 45 $ 787 $ 300 $ 1,132 $ 77

Changes in unrealized (gains) losses in net income relating to liabilities held at September 30, 2023

Available-for-Sale Securities Receivables

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

(in millions)

Balance at January 1, 2022

$ 502 $ — $ 35 $ 7 $ 544 $ 59

Total gains (losses) included in:

Net income ( 1 ) — — — ( 1 ) (1) ( 10 )

Other comprehensive income (loss) — — — — 1

Purchases 39 389 112 31 571 —

Settlements ( 91 ) — — — ( 91 ) ( 2 )

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

Balance at September 30, 2022

$ 403 $ 246 $ — $ 24 $ 673 $ 47

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

$ ( 1 ) $ — $ — $ — $ ( 1 ) (1) $ —

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

$ ( 45 ) $ ( 4 ) $ — $ — $ ( 49 ) $ —

Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities

Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total

(in millions)

Balance at January 1, 2022

$ 56 $ 905 $ 406 $ 1,367 $ 61

Total (gains) losses included in:

Net income ( 10 ) (2) ( 162 ) (2) ( 939 ) (3) ( 1,111 ) — (4)

Other comprehensive income (loss) — — — — ( 5 )

Issues — 24 12 36 14

Settlements ( 1 ) ( 30 ) 4 ( 27 ) ( 7 )

Balance at September 30, 2022

$ 43 $ 689 $ ( 513 ) (5) $ 219 $ 63

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

$ — $ ( 162 ) (2)

$ ( 939 ) (3)

Balance at March 31, 2023

$ 44 $ 771 $ 142 $ 957 $ 70

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Changes in unrealized (gains) losses in net income relating to liabilities held at March 31, 2023

(1) Included in Net investment income.

2 unchanged sentences

(4) Included in General and administrative expense.

(5) The fair value of the structured variable annuity embedded derivatives was a net asset as of January 1, 2023 and September 30, 2022 and the amounts are presented as contra liabilities.

The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $( 17 ) million and $ 6 million, net of the reinsurance accrual, for the three months ended September 30, 2023 and 2022, respectively.

The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $ 44 million and $ 126 million, net of the reinsurance accrual, for the nine months ended September 30, 2023 and 2022, respectively.

(5) The fair value of the structured variable annuity embedded derivatives was a net asset as of January 1, 2023 and the amount is presented as a contra liability.

The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was nil and $ 57 million, net of the reinsurance accrual, for the three months ended March 31, 2024 and 2023, respectively.

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

1 unchanged sentence

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

September 30, 2023

March 31, 2024

Fair Value Valuation Technique Unobservable Input Range Weighted Average

56 unchanged sentences

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

(6) The fair value of the structured variable annuity embedded derivatives was a net asset as of December 31, 2022 and the amount is presented as a contra liability.

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

8 unchanged sentences

Significant increases (decreases) in the discount rate used in the fair value measurement of the contingent consideration liability in isolation would have resulted in a significantly lower (higher) fair value measurement.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Determination of Fair Value

1 unchanged sentence

The Company’s market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

The Company’s income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount.

The Company’s income approach uses valuation techniques to convert future projected

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

cash flows to a single discounted present value amount.

When applying either approach, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs.

37 unchanged sentences

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

The variation margin on futures contracts is also classified as Level 1.

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

The fair value of derivatives that are traded in less active over-the-counter (“OTC”) markets is generally measured using pricing models with market observable inputs

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

such as interest rates and equity index levels.

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

The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of both September 30, 2023 and December 31, 2022.

The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of both March 31, 2024 and December 31, 2023.

See Note 13 and Note 14 for further information on the credit risk of derivative instruments and related collateral.

20 unchanged sentences

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

The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of both September 30, 2023 and December 31, 2022.

The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of both March 31, 2024 and December 31, 2023.

See Note 13 and Note 14 for further information on the credit risk of derivative instruments and related collateral.

13 unchanged sentences

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

The balance of

The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $ 38 million and $ 41 million as of March 31, 2024 and December 31, 2023, respectively, and is classified as Level 3 in the fair value hierarchy.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

affordable housing partnerships measured at fair value on a nonrecurring basis was $ 44 million and $ 58 million as of September 30, 2023 and December 31, 2022, respectively, and is classified as Level 3 in the fair value hierarchy.

Assets and Liabilities Not Reported at Fair Value

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

September 30, 2023

March 31, 2024

Carrying Value Fair Value

39 unchanged sentences

Separate account liabilities are primarily investment contracts in pooled pension funds offered by Threadneedle.

Debt and other liabilities include the Company’s long-term debt, short-term borrowings, securities loaned and future funding

Debt and other liabilities include the Company’s long-term debt, short-term borrowings, securities loaned and future funding commitments to affordable housing partnerships and other real estate partnerships.

See Note 11 for further information on the Company’s long-term debt and short-term borrowings.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

commitments to affordable housing partnerships and other real estate partnerships.

See Note 12 for further information on the Company’s long-term debt and short-term borrowings.

Offsetting Assets and Liabilities

7 unchanged sentences

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

September 30, 2023

March 31, 2024

Gross Amounts of Recognized Assets

33 unchanged sentences

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

September 30, 2023

March 31, 2024

Gross Amounts of Recognized Liabilities

52 unchanged sentences

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

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

Notional Gross Fair Value Notional Gross Fair Value

3 unchanged sentences

Derivatives designated as hedging instruments

Equity contracts - cash flow hedges $ 1 $ — $ — $ 6 $ — $ 1

Foreign exchange contracts – net investment hedges $ — $ — $ — $ 61 $ — $ 3

25 unchanged sentences

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

(3) The fair value of the structured variable annuity embedded derivatives as of September 30, 2023 included $ 459 million of individual contracts in a liability position and $ 159 million of individual contracts in an asset position.

The fair value of the structured variable annuity embedded derivatives as of December 31, 2022 included $ 194 million of individual contracts in a liability position and $ 331 million of individual contracts in an asset position.

(3) The fair value of the structured variable annuity embedded derivatives as of March 31, 2024 included $ 1.6 billion of individual contracts in a liability position and $ 1 million of individual contracts in an asset position.

The fair value of the structured variable annuity embedded derivatives as of December 31, 2023 included $ 1.0 billion of individual contracts in a liability position and $ 15 million of individual contracts in an asset position.

See Note 12 for additional information regarding the Company’s fair value measurement of derivative instruments.

As of September 30, 2023 and December 31, 2022, investment securities with a fair value of $ 1.6 billion and $ 1.7 billion, respectively, were pledged to meet contractual obligations under derivative contracts, of which $ 264 million and $ 302 million, respectively, may be sold, pledged or rehypothecated by the counterparty.

As of September 30, 2023 and December 31, 2022, investment securities with a fair value of $ 212 million and $ 14 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $ 211 million and $ 5 million, respectively, may be sold, pledged or rehypothecated by the Company.

As of both September 30, 2023 and December 31, 2022, the Company had sold, pledged or rehypothecated none of these securities.

In addition, as of both September 30, 2023 and December 31, 2022, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.

As of March 31, 2024 and December 31, 2023, investment securities with a fair value of $ 1.6 billion and $ 1.5 billion, respectively, were pledged to meet contractual obligations under derivative contracts, of which $ 390 million and $ 145 million, respectively, may be sold, pledged or rehypothecated by the counterparty.

As of March 31, 2024 and December 31, 2023, investment securities with a fair value of $ 497 million and $ 376 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $ 417 million and $ 314 million, respectively, may be sold, pledged or rehypothecated by the Company.

As of both March 31, 2024 and December 31, 2023, the Company had sold, pledged or rehypothecated none of these securities.

In addition, as of both March 31, 2024 and December 31, 2023, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.

AMERIPRISE FINANCIAL, INC.

1 unchanged sentence

Derivatives Not Designated as Hedges

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

Net Investment Income Banking and Deposit Interest Expense Distribution Expenses Interest Credited to Fixed Accounts Benefits, Claims, Losses and Settlement Expenses Change in Fair Value of Market Risk Benefits Interest and Debt Expense General and Administrative Expense

(in millions)

Three Months Ended September 30, 2023

Interest rate contracts $ — $ — $ — $ — $ ( 7 ) $ ( 1,073 ) $ — $ —

Equity contracts 1 ( 1 ) ( 44 ) ( 19 ) ( 119 ) 245 — ( 5 )

Credit contracts — — ( 2 ) — — 154 — —

Foreign exchange contracts — — — — — 51 — —

IUL embedded derivatives — — — 28 — — — —

Structured variable annuity embedded derivatives — — — — 246 — — —

SMC embedded derivatives — 1 — — — — — —

Total gain (loss) $ 1 $ — $ ( 46 ) $ 9 $ 120 $ ( 623 ) $ — $ ( 5 )

Three Months Ended September 30, 2022

Interest rate contracts $ — $ — $ — $ — $ ( 19 ) $ ( 734 ) $ — $ —

Equity contracts 3 ( 1 ) ( 41 ) ( 23 ) ( 61 ) 402 — ( 5 )

Credit contracts — — 1 — — 92 — —

Foreign exchange contracts 1 — — — — 112 — ( 8 )

IUL embedded derivatives — — — 48 — — — —

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

SMC embedded derivatives — 1 — — — — — —

Total gain (loss) $ 4 $ — $ ( 40 ) $ 25 $ 93 $ ( 128 ) $ — $ ( 13 )

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

(in millions)

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Interest rate contracts $ — $ — $ — $ — $ ( 8 ) $ ( 533 ) $ —

7 unchanged sentences

Total gain (loss) $ ( 2 ) $ — $ 65 $ 22 $ ( 38 ) $ ( 993 ) $ 3

Nine Months Ended September 30, 2022

Three Months Ended March 31, 2023

Interest rate contracts $ — $ — $ — $ — $ 6 $ 247 $ —

12 unchanged sentences

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

The following is a summary of the payments the Company is scheduled to make and receive for these options as of September 30, 2023:

The following is a summary of the payments the Company is scheduled to make and receive for these options as of March 31, 2024:

Premiums Payable Premiums Receivable

(in millions)

2028 - 2030 408 —

Total $ 882 $ 115

(1) 2023 amounts represent the amounts payable and receivable for the period from October 1, 2023 to December 31, 2023.

(1) 2024 amounts represent the amounts payable and receivable for the period from April 1, 2024 to December 31, 2024.

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

10 unchanged sentences

Cash Flow Hedges

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

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

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

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

For both the three and nine months ended September 30, 2023 and 2022, the amounts reclassified from AOCI to earnings related to cash flow hedges were immaterial.

The estimated net amount recorded in AOCI as of September 30, 2023 that the Company expects to reclassify to earnings as a reduction to Interest and debt expense within the next twelve months is $ 0.8 million and as an increase to General and administrative expense is $ 0.6 million.

For both the three months ended March 31, 2024 and 2023, the amounts reclassified from AOCI to earnings related to cash flow hedges were immaterial.

The estimated net amount recorded in AOCI as of March 31, 2024 that the Company expects to reclassify to earnings as a reduction to Interest and debt expense within the next twelve months is $ 0.8 million.

Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is 12 years and relates to forecasted debt interest payments.

3 unchanged sentences

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

For the three months ended September 30, 2023 and 2022, the Company recognized a gain of $ 2 million and a gain of $ 8 million, respectively, in OCI.

For the nine months ended September 30, 2023 and 2022, the Company recognized a loss of $ 1 million and a gain of $ 22 million, respectively, in OCI.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

For the three months ended March 31, 2024 and 2023, the Company recognized an immaterial gain and a loss of $ 2 million, respectively, in other comprehensive income (loss) (“OCI”).

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

To mitigate such risk, the Company has established guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes members of senior management.

Key components of this program are to require preapproval of counterparties and the use of master netting and collateral arrangements whenever practical.

Key components of this

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

program are to require preapproval of counterparties and the use of master netting and collateral arrangements whenever practical.

See Note 13 for additional information on the Company’s credit exposure related to derivative assets.

2 unchanged sentences

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

As of September 30, 2023 and December 31, 2022, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $ 198 million and $ 240 million, respectively.

The aggregate fair value of assets posted as collateral for such instruments as of September 30, 2023 and December 31, 2022 was $ 196 million and $ 236 million, respectively.

If the credit contingent provisions of derivative contracts in a net liability position as of September 30, 2023 and December 31, 2022 were triggered, the aggregate fair value of additional assets that would be required to be posted as collateral or needed to settle the instruments immediately would have been $ 2 million and $ 4 million, respectively.

As of March 31, 2024 and December 31, 2023, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $ 41 million and $ 65 million, respectively.

The aggregate fair value of assets posted as collateral for such instruments as of March 31, 2024 and December 31, 2023 was $ 39 million and $ 58 million, respectively.

If the credit contingent provisions of derivative contracts in a net liability position as of March 31, 2024 and December 31, 2023 were triggered, the aggregate fair value of additional assets that would be required to be posted as collateral or needed to settle the instruments immediately would have been $ 2 million and $ 7 million, respectively.

Shareholders’ Equity

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

Three Months Ended September 30,

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

(in millions)

Net unrealized gains (losses) on securities:

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

$ ( 854 ) $ 190 $ ( 664 ) $ ( 1,435 ) $ 321 $ ( 1,114 )

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

38 ( 8 ) 30 86 ( 18 ) 68

Impact of benefit reserves and reinsurance recoverables 14 ( 3 ) 11 20 ( 3 ) 17

Net unrealized gains (losses) on securities ( 802 ) 179 ( 623 ) ( 1,329 ) 300 ( 1,029 )

Effect of changes in discount rate assumptions on certain long-duration contracts 221 ( 47 ) 174 306 ( 65 ) 241

Effect of changes in instrument-specific credit risk on MRBs 23 ( 5 ) 18 ( 4 ) 1 ( 3 )

Defined benefit plans:

Net gains (losses) — — — 1 — 1

Defined benefit plans — — — 1 — 1

Foreign currency translation ( 76 ) 16 ( 60 ) ( 160 ) 33 ( 127 )

Total other comprehensive income (loss) $ ( 634 ) $ 143 $ ( 491 ) $ ( 1,186 ) $ 269 $ ( 917 )

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Nine Months Ended September 30,

The following table presents the amounts related to each component of OCI:

Three Months Ended March 31,

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

13 unchanged sentences

Effect of changes in instrument-specific credit risk on MRBs ( 48 ) 11 ( 37 ) 204 ( 43 ) 161

Defined benefit plans:

Net gains (losses) — — — 1 — 1

Defined benefit plans — — — 1 — 1

Foreign currency translation ( 18 ) — ( 18 ) 42 ( 9 ) 33

14 unchanged sentences

(in millions)

Balance at July 1, 2023

$ ( 1,951 ) $ 5 $ ( 78 ) $ 15 $ ( 75 ) $ ( 264 ) $ ( 1 ) $ ( 2,349 )

OCI before reclassifications ( 653 ) — 174 18 — ( 60 ) — ( 521 )

Amounts reclassified from AOCI 30 — — — — — — 30

Total OCI ( 623 ) — 174 18 — ( 60 ) — ( 491 )

Balance at September 30, 2023

$ ( 2,574 ) $ 5 $ 96 $ 33 $ ( 75 ) $ ( 324 ) $ ( 1 ) $ ( 2,840 )

Balance at July 1, 2022

$ ( 1,254 ) $ 3 $ ( 243 ) $ 233 $ ( 151 ) $ ( 335 ) $ ( 1 ) $ ( 1,748 )

OCI before reclassifications ( 1,097 ) — 241 ( 3 ) 1 ( 127 ) — ( 985 )

Amounts reclassified from AOCI 68 — — — — — — 68

Total OCI ( 1,029 ) — 241 ( 3 ) 1 ( 127 ) — ( 917 )

Balance at September 30, 2022

$ ( 2,283 ) $ 3 $ ( 2 ) $ 230 $ ( 150 ) $ ( 462 ) $ ( 1 ) $ ( 2,665 )

Balance at January 1, 2024

1 unchanged sentence

OCI before reclassifications ( 178 ) — 69 ( 37 ) — ( 18 ) — ( 164 )

Amounts reclassified from AOCI 23 — — — — — — 23

Total OCI ( 178 ) — 69 ( 37 ) — ( 18 ) — ( 164 )

Balance at September 30, 2023

Balance at March 31, 2024

$ ( 1,419 ) $ 5 $ ( 57 ) $ ( 122 ) $ ( 60 ) $ ( 276 ) $ ( 1 ) $ ( 1,930 )

4 unchanged sentences

Total OCI 430 2 ( 65 ) 161 — 33 — 561

Balance at September 30, 2022

Balance at March 31, 2023

$ ( 1,613 ) $ 5 $ ( 137 ) $ 141 $ ( 75 ) $ ( 305 ) $ ( 1 ) $ ( 1,985 )

For the nine months ended September 30, 2023 and 2022, the Company repurchased a total of 4.7 million shares and 5.0 million shares, respectively, of its common stock for an aggregate cost of $ 1.5 billion and $ 1.4 billion, respectively.

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

For the three months ended March 31, 2024 and 2023, the Company repurchased a total of 1.2 million shares and 1.6 million shares, respectively, of its common stock for an aggregate cost of $ 507 million and $ 506 million, respectively.

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

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

As of March 31, 2024, the Company had $ 2.6 billion remaining under this share repurchase authorization.

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

1 unchanged sentence

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

For the nine months ended September 30, 2023 and 2022, the Company reacquired 0.3 million shares and 0.3 million shares, respectively, of its common stock through the surrender of shares upon vesting and paid in the aggregate $ 99 million and $ 99 million, respectively, related to the holders’ income tax obligations on the vesting date.

For the three months ended March 31, 2024 and 2023, the Company reacquired 0.3 million shares and 0.3 million shares, respectively, of its common stock through the surrender of shares upon vesting and paid in the aggregate $ 99 million and $ 87 million, respectively, related to the holders’ income tax obligations on the vesting date.

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

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

For the nine months ended September 30, 2023 and

For the three months ended March 31, 2024 and 2023, the Company reacquired 0.2 million shares and 0.2 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $ 99 million and $ 63 million, respectively.

During the three months ended March 31, 2024 and 2023, the Company reissued 0.7 million and 0.6 million, respectively, treasury shares for restricted stock award grants, performance share units and issuance of shares vested under advisor deferred compensation plans.

The Company’s effective tax rate was 18.8 % and 15.9 % for the three months ended March 31, 2024 and 2023, respectively.

The effective tax rate for the three months ended March 31, 2024 was lower than the statutory rate as a result of tax preferred items including incentive compensation and foreign tax credits net of addback, partially offset by state income taxes, net of federal benefit.

The effective tax rate for the three months ended March 31, 2023 was lower than the statutory rate as a result of tax preferred items including incentive compensation, foreign tax credits net of addback, the dividends received deduction and low income housing tax credits, partially offset by state income taxes, net of federal benefit.

The higher effective tax rate for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 was primarily the result of higher pretax income and a decrease in foreign tax credits net of addback, partially offset by an increase in incentive compensation compared to the prior period.

Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $ 32 million, net of federal benefit, which will expire beginning December 31, 2024 and foreign net operating losses of $ 42 million, which do not expire.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

2022, the Company reacquired 0.3 million shares and 0.3 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $ 109 million and $ 87 million, respectively.

During the nine months ended September 30, 2023 and 2022, the Company reissued 0.6 million and 0.7 million, respectively, treasury shares for restricted stock award grants, performance share units and issuance of shares vested under advisor deferred compensation plans.

The Company’s effective tax rate was 21.8 % and 20.5 % for the three months ended September 30, 2023 and 2022, respectively.

The Company’s effective tax rate was 20.5 % and 19.7 % for the nine months ended September 30, 2023 and 2022, respectively.

The effective tax rate for the three months ended September 30, 2023 was higher than the statutory rate as a result of state income taxes, net of federal benefit.

The effective tax rate for the nine months ended September 30, 2023 was lower than the statutory rate as a result of tax preferred items including incentive compensation, partially offset by state income taxes, net of federal benefit.

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

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

Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $ 30 million, net of federal benefit, which will expire beginning December 31, 2023 and foreign net operating losses of $ 37 million, which do not expire.

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

6 unchanged sentences

and (iv) tax planning strategies.

Based on analysis of the Company’s tax position as of September 30, 2023, management believes it is more likely than not that the Company will not realize certain state net operating losses of $ 29 million and state deferred tax assets of $ 2 million, net of federal benefit, and foreign net operating losses of $ 37 million;

Based on analysis of the Company’s tax position as of March 31, 2024, management believes it is more likely than not that the Company will not realize certain state net operating losses of $ 31 million, state deferred tax assets of $ 2 million (both net of federal benefit), and foreign net operating losses of $ 33 million;

therefore, a valuation allowance has been established.

The valuation allowance was $ 68 million and $ 65 million as of September 30, 2023 and December 31, 2022, respectively.

As of September 30, 2023 and December 31, 2022, the Company had $ 137 million and $ 138 million, respectively, of gross unrecognized tax benefits.

If recognized, approximately $ 109 million and $ 106 million, net of federal tax benefits, of unrecognized tax benefits as of September 30, 2023 and December 31, 2022, respectively, would affect the effective tax rate.

During the second quarter of 2023, the Company had additions to its gross unrecognized tax benefits for tax positions of prior years of $ 71 million and reductions to its gross unrecognized tax benefits of prior years of $ 80 million.

The valuation allowance was $ 66 million and $ 65 million as of March 31, 2024 and December 31, 2023, respectively.

As of March 31, 2024 and December 31, 2023, the Company had $ 156 million and $ 150 million, respectively, of gross unrecognized tax benefits.

If recognized, approximately $ 126 million and $ 120 million, net of federal tax benefits, of unrecognized tax benefits as of March 31, 2024 and December 31, 2023, respectively, would affect the effective tax rate.

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

1 unchanged sentence

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

The Company recognized a net increase of $ 2 million and $ 10 million in interest and penalties for the three and nine months ended September 30, 2023, respectively.

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

As of September 30, 2023 and December 31, 2022, the Company had a payable of $ 24 million and $ 14 million, respectively, related to accrued interest and penalties.

The Company recognized a net increase of $ 2 million and $ 1 million in interest and penalties for the three months ended March 31, 2024 and 2023, respectively.

As of March 31, 2024 and December 31, 2023, the Company had a payable of $ 28 million and $ 26 million, respectively, related to accrued interest and penalties.

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

federal jurisdiction and various state and foreign jurisdictions.

The federal statute of limitations are closed on years through 2015.

A previously open item for 2014 and 2015 was resolved in the second quarter of 2023.

Also in the second quarter of 2023, the Internal Revenue Service (“IRS”) audit for tax years 2016 through 2018 was finalized.

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

The Internal Revenue Service (“IRS”) is currently auditing the Company’s U.S.

income tax returns for 2019 and 2020.

2 unchanged sentences

however, based on current estimates the Company does not expect to be liable for the CAMT in 2024 and therefore a liability has not been recorded.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

In December 2021, the Organization for Economic Co-operation and Development published the Pillar Two model rules which introduce new taxing mechanisms aimed at ensuring multinational enterprises pay a minimum level of tax on profits from each jurisdiction in which they operate.

Various jurisdictions that the Company operates in have enacted or substantively enacted legislation that became effective beginning January 1, 2024.

The Company intends to rely on Pillar Two transitional safe harbors where available and, based on its current estimate, has not recorded any Pillar Two tax liabilities.

The Company continues to monitor the adoption and implementation of these rules and evaluate the potential impact on its consolidated financial statements.

Contingencies

13 unchanged sentences

security of client information;

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

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

recordkeeping requirements;

1 unchanged sentence

The Company is cooperating with the applicable regulators.

In connection with one such matter, the Company has been responding to SEC document and information requests regarding the preservation of certain business-related communications sent on electronic messaging platforms that have not been approved by the Company.

The Company has engaged in certain resolution discussions regarding this matter and, in the third quarter of 2023, recorded a $ 20 million accrual within our introducing broker dealer subsidiary, but there is no assurance that these discussions will lead to a resolution.

In connection with one such matter, the Company has responded to SEC document and information requests regarding the preservation of certain business-related communications sent on electronic messaging platforms that have not been approved by the Company.

During 2023, the Company recorded a $ 50 million accrual for this matter within our introducing broker dealer subsidiary.

The Company has reached an agreement in principle with the Staff, subject to Commission approval, that it believes resolves this matter.

As of March 31, 2024, the related liability was $ 50 million.

These pending matters are subject to uncertainties and, as such, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to reasonably estimate the amount of any loss that may result from such matters.

7 unchanged sentences

Once the Company establishes an accrued liability with respect to a loss contingency, the Company continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established, and any appropriate adjustments are made each quarter.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Guaranty Fund Assessments

RiverSource Life and RiverSource Life Insurance Co.

RiverSource Life Insurance Company (“RiverSource Life”) and RiverSource Life Insurance Co.

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

3 unchanged sentences

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

As of September 30, 2023 and December 31, 2022, the estimated liability was $ 37 million and $ 12 million, respectively.

As of September 30, 2023 and December 31, 2022, the related premium tax asset was $ 31 million and $ 10 million, respectively.

As of both March 31, 2024 and December 31, 2023, the estimated liability was $ 34 million.

As of both March 31, 2024 and December 31, 2023, the related premium tax asset was $ 29 million.

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Earnings per Share

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

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions, except per share amounts)

6 unchanged sentences

Diluted $ 9.46 $ 3.79

The calculation of diluted earnings per share excludes the incremental effect of nil options for both the three months ended September 30, 2023 and 2022, and 0.2 million options for both the nine months ended September 30, 2023 and 2022, due to their anti-dilutive effect.

The calculation of diluted earnings per share excludes the incremental effect of nil and 0.3 million options for the three months ended March 31, 2024 and 2023, respectively, due to their anti-dilutive effect.

Segment Information

5 unchanged sentences

The Company believes the presentation of segment adjusted operating earnings, as the Company measures it for management purposes, enhances the understanding of its business by reflecting the underlying performance of its core operations and facilitating a more meaningful trend analysis.

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

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

1 unchanged sentence

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

mean reversion related impacts (the impact on VUL products for the difference between

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

assumed and updated separate account investment performance on the reinsurance accrual and additional insurance benefit reserves);

mean reversion related impacts (the impact on VUL products for the difference between assumed and updated separate account investment performance on the reinsurance accrual and additional insurance benefit reserves);

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

4 unchanged sentences

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

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

Concurrent with the adoption of ASU 2018-12 , management no longer excludes adjustments for DAC, DSIC and unearned revenue amortization.

Amortization of DAC, DSIC and unearned revenue for long-duration contracts are no longer impacted by markets and are now amortized on a constant-level basis.

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

(in millions)

5 unchanged sentences

Total assets $ 179,831 $ 175,191

Three Months Ended September 30,

Nine Months Ended September 30,

2023 2022 2023 2022

Three Months Ended March 31,

(in millions)

3 unchanged sentences

Asset Management

826 823 2,433 2,721

Retirement & Protection Solutions 912 824

Corporate & Other

143 115 417 350

Elimination of segment revenues (1)

1 unchanged sentence

Total segment adjusted operating net revenues

3,915 3,542 11,439 10,612

Net realized investment gains (losses)

( 38 ) ( 88 ) ( 32 ) ( 86 )

Market impact on non-traditional long-duration products 2 —

Mean reversion related impacts — — — ( 1 )

Revenue attributable to consolidated investment entities 44 41

Total net revenues per consolidated statements of operations $ 4,146 $ 3,742

(1) Represents the elimination of intersegment revenues recognized for the three months ended September 30, 2023 and 2022 in each segment as follows:

Advice & Wealth Management ($ 217 million and $ 202 million, respectively);

Asset Management ($ 21 million and $ 14 million, respectively);

Retirement & Protection Solutions ($ 104 million and $ 101 million, respectively);

and Corporate & Other ($( 5 ) million and $( 1 ) million, respectively).

(2) Represents the elimination of intersegment revenues recognized for the nine months ended September 30, 2023 and 2022 in each segment as follows:

(1) Represents the elimination of intersegment revenues recognized for the three months ended March 31, 2024 and 2023 in each segment as follows:

Advice & Wealth Management ($ 225 million and $ 201 million, respectively);

2 unchanged sentences

and Corporate & Other ($( 7 ) million and $( 4 ) million, respectively).

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Three Months Ended September 30,

Nine Months Ended September 30,

2023 2022 2023 2022

Three Months Ended March 31,

(in millions)

1 unchanged sentence

Advice & Wealth Management

$ 729 $ 595 $ 2,153 $ 1,527

Asset Management

199 191 526 698

Retirement & Protection Solutions 199 194

2 unchanged sentences

Total segment adjusted operating earnings

956 1,033 2,956 2,674

Net realized investment gains (losses) — 3

Market impact on non-traditional long-duration products 140 ( 475 )

Mean reversion related impacts

— ( 1 ) — ( 3 )

Integration/restructuring charges — ( 10 )

Net income (loss) attributable to consolidated investment entities

— ( 3 ) — ( 2 )

Pretax income per consolidated statements of operations $ 1,219 $ 496

1 unchanged sentence

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

What changed 10-Q

Item 1. Financial Statements