What changed in this filing

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Item 1. Financial Statements

2024-08-06 compared with 2024-05-06 · 517 added, 247 removed, 2180 unchanged (26% of the section changed)

1 unchanged sentence

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in millions, except per share amounts)

26 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in millions)

6 unchanged sentences

Foreign currency translation adjustment

1 41 ( 17 ) 74

Total other comprehensive income (loss), net of tax

( 63 ) ( 364 ) ( 227 ) 197

Total comprehensive income (loss) $ 766 $ 526 $ 1,592 $ 1,504

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(in millions, except share amounts)

50 unchanged sentences

(in millions, except per share data)

Balances at April 1, 2024

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

Net income — — — 829 — — 829

Other comprehensive income (loss), net of tax — — — — — ( 63 ) ( 63 )

Dividends to shareholders — — — ( 151 ) — — ( 151 )

Repurchase of common shares ( 1,314,274 ) — — — ( 566 ) — ( 566 )

Share-based compensation plans 105,388 — 63 — 2 — 65

Balances at June 30, 2024

98,435,479 $ 3 $ 9,987 $ 23,430 $ ( 26,434 ) $ ( 1,993 ) $ 4,993

Balances at April 1, 2023

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

Net income — — — 890 — — 890

Other comprehensive income (loss), net of tax — — — — — ( 364 ) ( 364 )

Dividends to shareholders — — — ( 146 ) — — ( 146 )

Repurchase of common shares ( 1,620,098 ) — — — ( 502 ) — ( 502 )

Share-based compensation plans 57,023 — 58 — — — 58

Balances at June 30, 2023

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

Balances at January 1, 2024

6 unchanged sentences

Share-based compensation plans 1,317,913 — 163 — 75 — 238

Balances at March 31, 2024

Balances at June 30, 2024

98,435,479 $ 3 $ 9,987 $ 23,430 $ ( 26,434 ) $ ( 1,993 ) $ 4,993

6 unchanged sentences

Share-based compensation plans 1,145,820 — 153 — 63 — 216

Balances at March 31, 2023

Balances at June 30, 2023

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

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended March 31,

Six Months Ended June 30,

(in millions)

Cash Flows from Operating Activities

$ 1,819 $ 1,307

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

10 unchanged sentences

Restricted and segregated investments

( 158 ) ( 123 )

Deferred acquisition costs

3 unchanged sentences

Brokerage deposits

( 112 ) ( 564 )

Accounts payable and accrued expenses

24 unchanged sentences

Cash received for deposit receivables 327 407

( 36 ) ( 22 )

Net cash provided by (used in) investing activities $ ( 403 ) $ ( 6,020 )

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)

Three Months Ended March 31,

Six Months Ended June 30,

(in millions)

12 unchanged sentences

Change in banking deposits, net

( 170 ) 1,702

Cash paid for purchased options with deferred premiums

( 79 ) ( 44 )

Cash received from purchased options with deferred premiums

Cash received for purchased options with deferred premiums

Issuance of long-term debt, net of issuance costs — 741

19 unchanged sentences

Leased assets obtained in exchange for operating lease liabilities

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(in millions)

45 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 March 31, 2024

Three Months Ended June 30, 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)

Three Months Ended March 31, 2023

Three Months Ended June 30, 2023

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

25 unchanged sentences

Total net revenues $ 2,132 $ 789 $ 754 $ 151 $ 3,826 $ 50 $ 3,876

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Six Months Ended June 30, 2024

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

Revenue Total

(in millions)

Management and financial advice fees:

Asset management fees:

Retail $ — $ 1,052 $ — $ — $ 1,052 $ — $ 1,052

Institutional — 320 — — 320 — 320

Advisory fees 2,664 — — — 2,664 — 2,664

Financial planning fees 222 — — — 222 — 222

Transaction and other fees 194 102 30 — 326 — 326

Total management and financial advice fees 3,080 1,474 30 — 4,584 — 4,584

Distribution fees:

Mutual funds 395 112 — — 507 — 507

Insurance and annuity 507 79 168 — 754 — 754

Off-balance sheet brokerage cash 90 — — — 90 — 90

Other products 214 — — — 214 — 214

Total distribution fees 1,206 191 168 — 1,565 — 1,565

Other revenues 126 5 — 1 132 — 132

Total revenue from contracts with customers 4,412 1,670 198 1 6,281 — 6,281

Revenue from other sources (1)

1,143 33 1,642 246 3,064 100 3,164

Total segment gross revenues 5,555 1,703 1,840 247 9,345 100 9,445

Banking and deposit interest expense ( 351 ) — — ( 15 ) ( 366 ) — ( 366 )

Total segment net revenues 5,204 1,703 1,840 232 8,979 100 9,079

Elimination of intersegment revenues ( 461 ) ( 47 ) ( 214 ) 14 ( 708 ) ( 5 ) ( 713 )

Total net revenues $ 4,743 $ 1,656 $ 1,626 $ 246 $ 8,271 $ 95 $ 8,366

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Six Months Ended June 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 $ — $ 981 $ — $ — $ 981 $ — $ 981

Institutional — 309 — — 309 — 309

Advisory fees 2,263 — — — 2,263 — 2,263

Financial planning fees 205 — — — 205 — 205

Transaction and other fees 185 96 28 — 309 — 309

Total management and financial advice fees 2,653 1,386 28 — 4,067 — 4,067

Distribution fees:

Mutual funds 354 103 — — 457 — 457

Insurance and annuity 433 77 162 — 672 — 672

Off-balance sheet brokerage cash

210 — — — 210 — 210

Other products 165 — — — 165 — 165

Total distribution fees 1,162 180 162 — 1,504 — 1,504

Other revenues 117 12 — — 129 — 129

Total revenue from contracts with customers 3,932 1,578 190 — 5,700 — 5,700

Revenue from other sources (1)

910 29 1,492 281 2,712 100 2,812

Total segment gross revenues 4,842 1,607 1,682 281 8,412 100 8,512

Banking and deposit interest expense ( 234 ) — — ( 7 ) ( 241 ) — ( 241 )

Total segment net revenues 4,608 1,607 1,682 274 8,171 100 8,271

Elimination of intersegment revenues ( 412 ) ( 36 ) ( 206 ) 7 ( 647 ) ( 6 ) ( 653 )

Total net revenues $ 4,196 $ 1,571 $ 1,476 $ 281 $ 7,524 $ 94 $ 7,618

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

36 unchanged sentences

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.

Contract liabilities for financial planning fees, which are included in Other liabilities, were $ 166 million and $ 168 million as of June 30, 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 $ 133 million and $ 135 million as of March 31, 2024 and December 31, 2023, respectively.

Capitalized costs to obtain these contracts are reported in Other assets and were $ 133 million and $ 135 million as of June 30, 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 $ 39 million and nil as of March 31, 2024 and December 31, 2023, respectively.

Contract liabilities for custodial service fees, which are included in Other liabilities, were $ 26 million and nil as of June 30, 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 operational systems necessary to enable the Company’s client servicing and production distribution efforts.

The Company earns

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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).

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

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

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

28 unchanged sentences

Contract Costs Asset

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.

The Company has an asset of $ 20 million and $ 25 million as of June 30, 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 $ 552 million and $ 537 million as of March 31, 2024 and December 31, 2023, respectively.

Receivables related to revenues from contracts with customers were $ 514 million and $ 537 million as of June 30, 2024 and December 31, 2023, respectively.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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 as of both March 31, 2024 and December 31, 2023.

The Company has unfunded commitments related to consolidated CLOs of $ 12 million and $ 24 million as of June 30, 2024 and December 31, 2023, respectively.

Structured Investments

2 unchanged sentences

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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.

9 unchanged sentences

The Company has invested in a portion of the unrated, junior subordinated notes and highly rated senior notes of certain CLOs.

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

The Company consolidates certain CLOs where it is the primary beneficiary.

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

4 unchanged sentences

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 carrying value of other non-consolidated VIEs was $ 253 million and $ 168 million as of June 30, 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 June 30, 2024 and December 31, 2023, respectively.

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

16 unchanged sentences

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

March 31, 2024

June 30, 2024

Level 1 Level 2 Level 3 Total

23 unchanged sentences

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

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

The estimated fair value of the CLOs’ debt was $ 2.4 billion and $ 2.1 billion as of June 30, 2024 and December 31, 2023, respectively.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

1 unchanged sentence

(in millions)

Balance at April 1, 2024

Total gains (losses) included in:

Net income — ( 5 ) (1)

Purchases — 47

Transfers into Level 3 2 25

Transfers out of Level 3 ( 1 ) ( 46 )

Balance at June 30, 2024

Changes in unrealized gains (losses) included in net income relating to assets held at June 30, 2024

Syndicated Loans

(in millions)

Balance at April 1, 2023

Total gains (losses) included in:

Net income ( 2 ) (1)

Transfers into Level 3 39

Transfers out of Level 3 ( 27 )

Balance at June 30, 2023

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

Common Stocks Syndicated Loans

(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

Balance at June 30, 2024

Changes in unrealized gains (losses) included in net income relating to assets held at June 30, 2024

$ — $ ( 6 ) (1)

8 unchanged sentences

Transfers out of Level 3

Balance at March 31, 2023

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

( 117 ) ( 1 )

Balance at June 30, 2023

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

$ ( 2 ) (1) $ —

1) Included in Net investment income.

1 unchanged sentence

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

All Level 3 measurements as of March 31, 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.

All Level 3 measurements as of June 30, 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

8 unchanged sentences

Other Liabilities

Other liabilities consist primarily of securities purchased but not yet settled held by consolidated CLOs.

Other liabilities consist primarily of securities purchased but not yet settled by consolidated CLOs.

The carrying value approximates fair value as the nature of these liabilities has historically been short-term.

7 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:

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(in millions)

3 unchanged sentences

Fair value $ 2,223 $ 2,054

Fair value of loans more than 90 days past due $ 4 $ —

Fair value of loans in nonaccrual status 5 13

5 unchanged sentences

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

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

The estimated fair value of the CLOs’ debt was $ 2.4 billion and $ 2.1 billion as of June 30, 2024 and December 31, 2023, respectively.

During the second quarter of 2024, the Company launched one new CLO.

The new CLO issued debt of $ 407 million.

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

1 unchanged sentence

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

Total net gains (losses) recognized in Net investment income related to the changes in fair value of investments the Company owns in the consolidated CLOs where it has elected the fair value option and collateralized financing entity accounting were immaterial for both the three months ended March 31, 2024 and 2023.

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

Carrying Value Weighted Average Interest Rate

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

June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023

(in millions)

4 unchanged sentences

The following is a summary of Ameriprise Financial investments:

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(in millions)

9 unchanged sentences

The following is a summary of Net investment income:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in millions)

2 unchanged sentences

Consolidated investment entities 53 45 98 87

104 115 205 196

Total $ 921 $ 811 $ 1,822 $ 1,509

1 unchanged sentence

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

March 31, 2024

June 30, 2024

Description of Securities

8 unchanged sentences

Foreign government bonds and obligations 19 — ( 1 ) — 18

Other securities 13 — — — 13

Total $ 53,598 $ 368 $ ( 2,266 ) $ ( 5 ) $ 51,695

11 unchanged sentences

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

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.

As of June 30, 2024 and December 31, 2023, accrued interest of $ 327 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 June 30, 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 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.

As of June 30, 2024 and December 31, 2023, the Company’s internal analysts rated $ 367 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:

March 31, 2024 December 31, 2023

June 30, 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 $ 53,598 $ 51,695 100 % $ 53,048 $ 51,562 100 %

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

(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 June 30, 2024 and December 31, 2023.

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

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.

As of June 30, 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 June 30, 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 March 31, 2024

Description of Securities June 30, 2024

Less than 12 Months 12 Months or More Total

8 unchanged sentences

Foreign government bonds and obligations 1 5 — 3 12 ( 1 ) 4 17 ( 1 )

Other securities 1 13 — — — — 1 13 —

Total 412 $ 10,287 $ ( 87 ) 1,525 $ 22,135 $ ( 2,179 ) 1,937 $ 32,422 $ ( 2,266 )

13 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 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.

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 six months ended June 30, 2024 is primarily attributable to the impact of higher interest rates.

As of June 30, 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 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.

As of June 30, 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:

Corporate Debt Securities State and Municipal Obligations Total

Corporate Debt Securities Commercial Mortgage Backed Securities State and Municipal Obligations Total

(in millions)

Balance at January 1, 2024

Balance at April 1, 2024

$ 1 $ — $ 1 $ 2

Additions for which credit losses were not previously recorded — 4 — 4

Reductions for securities sold during the period (realized) ( 1 ) — — ( 1 )

Balance at June 30, 2024

$ — $ 4 $ 1 $ 5

Balance at April 1, 2023

$ 23 $ — $ 2 $ 25

Reductions for securities sold during the period (realized) ( 13 ) — — ( 13 )

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

Balance at March 31, 2024

Balance at June 30, 2023

$ 7 $ — $ 2 $ 9

Balance at January 1, 2024

$ 1 $ — $ 1 $ 2

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

Balance at March 31, 2023

Additions for which credit losses were not previously recorded — 4 — 4

Reductions for securities sold during the period (realized) ( 1 ) — — ( 1 )

Balance at June 30, 2024

$ — $ 4 $ 1 $ 5

Balance at January 1, 2023

$ 20 $ — $ 2 $ 22

Reductions for securities sold during the period (realized) ( 13 ) — — ( 13 )

Balance at June 30, 2023

$ 7 $ — $ 2 $ 9

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 March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in millions)

4 unchanged sentences

Total $ ( 2 ) $ 6 $ ( 2 ) $ 9

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.

Credit losses for the three and six months ended June 30, 2024 primarily related to recording an allowance for credit losses on a commercial mortgage backed security with a recent downgrade.

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

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:

Available-for-Sale securities by contractual maturity as of June 30, 2024 were as follows:

Amortized Cost Fair Value

22 unchanged sentences

Charge-offs ( 2 ) ( 1 ) ( 3 )

Balance at March 31, 2024

Balance at June 30, 2024

$ 47 $ 10 $ 57

3 unchanged sentences

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

Balance at March 31, 2023

Balance at June 30, 2023

$ 54 $ 7 $ 61

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.

As of June 30, 2024 and December 31, 2023, accrued interest on commercial loans was $ 20 million and $ 19 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)

Purchases and Sales

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.

During the three months ended June 30, 2024 and 2023, the Company purchased $ 7 million and nil , respectively, of syndicated loans, and sold $ 4 million and $ 2 million, respectively, of syndicated loans.

During the six months ended June 30, 2024 and 2023, the Company purchased $ 7 million and $ 1 million, respectively, of syndicated loans, and sold $ 4 million and $ 3 million, respectively, of syndicated loans.

During the three months ended June 30, 2024 and 2023, the Company purchased $ 74 million and $ 52 million, respectively, of residential mortgage loans.

During the six months ended June 30, 2024 and 2023, the Company purchased $ 110 million and $ 95 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 as of both March 31, 2024 and December 31, 2023.

Nonperforming loans were $ 12 million as of both June 30, 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 March 31, 2024 and December 31, 2023.

Commercial mortgage loans which management has assigned its highest risk rating were less than 1 % of total commercial mortgage loans as of both June 30, 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 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:

March 31, 2024

There were no commercial mortgage loans past due as of both June 30, 2024 and December 31, 2023.

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

June 30, 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 three months ended March 31, 2024, write-offs of commercial mortgage loans were not material.

For the six months ended June 30, 2024, write-offs of commercial mortgage loans were not material.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

2 unchanged sentences

Loans Percentage

March 31, 2024

June 30, 2024

December 31, 2023

March 31, 2024

June 30, 2024

December 31, 2023

10 unchanged sentences

$ 1,855 $ 1,832 100 % 100 %

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

March 31, 2024

June 30, 2024

December 31, 2023

March 31, 2024

June 30, 2024

December 31, 2023

9 unchanged sentences

Syndicated Loans

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

The investment in syndicated loans as of June 30, 2024 and December 31, 2023 was $ 125 million and $ 145 million, respectively.

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

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.

There were no syndicated loans past due as of June 30, 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 three months ended March 31, 2024, write-offs of syndicated loans were not material.

For the six months ended June 30, 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:

March 31, 2024

June 30, 2024

Internal Risk Rating 2024 2023 2022 2021 2020 Prior Total

6 unchanged sentences

Total $ 46 $ 27 $ 1 $ 24 $ 5 $ 22 $ 125

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

December 31, 2023

12 unchanged sentences

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

The allowance for credit losses related to loans to advisors that have terminated their relationship with the Company was $ 7 million 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 allowance for credit losses related to loans to advisors that have terminated their relationship with the Company was $ 8 million and $ 7 million as of June 30, 2024 and December 31, 2023, respectively.

For the six months ended June 30, 2024, write-offs of advisor loans were not material.

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

March 31, 2024

June 30, 2024

Termination Status 2024 2023 2022 2021 2020 Prior Total

14 unchanged sentences

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.

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

For the six months ended June 30, 2024, write-offs of residential mortgage loans were not material.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

FICO Score March 31, 2024

FICO Score June 30, 2024

2023 2022 2021 2020 Total

13 unchanged sentences

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

March 31, 2024

June 30, 2024

December 31, 2023

March 31, 2024

June 30, 2024

December 31, 2023

3 unchanged sentences

Total $ 392 $ 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 % of total credit card receivables as of both March 31, 2024 and December 31, 2023.

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

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

March 31, 2024

June 30, 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.

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The margin loans balance was $ 1.1 billion as of both June 30, 2024 and December 31, 2023.

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

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

As of both June 30, 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 $ 563 million and $ 537 million as of March 31, 2024 and December 31, 2023, respectively.

The pledged asset lines of credit balance was $ 620 million and $ 537 million as of June 30, 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 March 31, 2024 and December 31, 2023 , there w as no allowance for credit losses on pledged asset lines of credit.

As of both June 30, 2024 and December 31, 2023 , there w as no allowance for credit losses on pledged asset lines of credit.

Deposit Receivables

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

Deposit receivables were $ 6.1 billion and $ 6.5 billion as of June 30, 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 March 31, 2024 and December 31, 2023.

Modifications with Borrowers Experiencing Financial Difficulty

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)

Modifications of financing receivables with borrowers experiencing financial difficulty by the Company were not material for the three and six months ended June 30, 2024 and 2023.

Deferred Acquisition Costs and Deferred Sales Inducement Costs

6 unchanged sentences

Amortization ( 60 ) ( 14 ) ( 4 ) ( 1 ) ( 4 ) ( 22 )

Balance at March 31, 2024

Balance at June 30, 2024

$ 1,446 $ 246 $ 31 $ 4 $ 106 $ 542

5 unchanged sentences

Amortization ( 8 ) — — ( 1 ) ( 5 ) ( 119 )

Balance at March 31, 2024

Balance at June 30, 2024

$ 217 $ 2 $ 8 $ 17 $ 72 $ 2,691

Other broker dealer acquisition costs 3

Balance at March 31, 2024 including broker dealer acquisition costs

Balance at June 30, 2024 including broker dealer acquisition costs

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

22 unchanged sentences

Amortization ( 7 ) ( 1 ) ( 8 )

Balance at March 31, 2024

Balance at June 30, 2024

$ 129 $ 11 $ 140

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Variable Annuities Fixed Annuities Total,

7 unchanged sentences

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

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(in millions)

9 unchanged sentences

Total policyholder account balances, future policy benefits and claims $ 39,742 $ 37,545

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Variable Annuities

19 unchanged sentences

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

11 unchanged sentences

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:

8 unchanged sentences

Variable account index-linked adjustments

— 1,086 — — —

Interest credited 64 — 104 8 5

Balance at March 31, 2024

Balance at June 30, 2024

$ 3,890 $ 13,751 $ 5,632 $ 307 $ 445

11 unchanged sentences

Variable account index-linked adjustments

— — — — 1,086

Interest credited 25 30 76 8 320

Balance at March 31, 2024

Balance at June 30, 2024

$ 1,439 $ 1,606 $ 2,817 $ 486 $ 30,373

45 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 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.

The following tables present the account values of fixed deferred annuities, fixed insurance, and the fixed portion of variable annuities and variable insurance contracts by range of guaranteed minimum interest rates (“GMIRs”) and the range of the difference between rates credited to policyholders and contractholders as of June 30, 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.

March 31, 2024

June 30, 2024

Account Values with Crediting Rates

154 unchanged sentences

Effect of changes in discount rate assumptions — ( 30 ) ( 5 ) ( 17 ) ( 52 )

Balance at March 31, 2024

Balance at June 30, 2024

$ — $ 690 $ 91 $ 1,063 $ 1,844

12 unchanged sentences

Effect of changes in discount rate assumptions ( 91 ) ( 16 ) 14 ( 203 ) ( 296 )

Balance at March 31, 2024

Balance at June 30, 2024

$ 1,181 $ 1,273 $ 618 $ 6,234 $ 9,306

54 unchanged sentences

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

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)

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 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 ( 16 ) ( 1 ) ( 4 ) ( 21 )

Balance at March 31, 2024

Balance at June 30, 2024

$ 1,260 $ 80 $ 11 $ 1,351

17 unchanged sentences

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

Three Months Ended March 31,

Six Months Ended June 30,

Gross Premiums Interest Expense

22 unchanged sentences

Amortization ( 1 ) ( 8 ) ( 11 ) ( 20 )

Balance at March 31, 2024

Balance at June 30, 2024

$ 26 $ 222 $ 281 $ 529

7 unchanged sentences

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

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(in millions)

20 unchanged sentences

Other charges — — ( 23 ) ( 23 )

Balance at March 31, 2024

Balance at June 30, 2024

$ 66,893 $ 9,445 $ 2,760 $ 79,098

43 unchanged sentences

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in millions, except age)

48 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:

March 31, 2024

June 30, 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.

27 unchanged sentences

Outstanding Balance Stated Interest Rate

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

June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023

(in millions)

19 unchanged sentences

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

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 remaining maturity of outstanding FHLB advances was less than three months as of both June 30, 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 March 31, 2024 and December 31, 2023.

The Company’s bank subsidiary had no outstanding obligations to the FHLB as of both June 30, 2024 and December 31, 2023.

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

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

As of both June 30, 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.

3 unchanged sentences

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

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.

As of both June 30, 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.

The Company was in compliance with all such covenants as of both June 30, 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 March 31, 2024 and December 31, 2023, AEIS had no borrowings outstanding.

As of both June 30, 2024 and December 31, 2023, AEIS had no borrowings outstanding.

AMERIPRISE FINANCIAL, INC.

15 unchanged sentences

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

March 31, 2024

June 30, 2024

Level 1 Level 2 Level 3 Total

9 unchanged sentences

Foreign government bonds and obligations — 18 — 18

Other securities — 13 — 13

Total Available-for-Sale securities 2,762 48,308 625 51,695

8 unchanged sentences

Equity derivative contracts 114 7,048 — 7,162

Credit derivative contracts — 1 — 1

Foreign exchange derivative contracts — 36 — 36

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 $ 197 million cumulative decrease to the embedded derivatives as of March 31, 2024.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

(3) The Company’s adjustment for nonperformance risk resulted in a $ 216 million cumulative decrease to the embedded derivatives as of June 30, 2024.

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

3 unchanged sentences

(in millions)

Balance at April 1, 2024

$ 505 $ 25 $ 1 $ 531 $ 54

Total gains (losses) included in:

Net income — — — — (1) 2

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

Purchases 50 60 23 133 —

Settlements ( 12 ) ( 2 ) — ( 14 ) ( 1 )

Transfers out of Level 3 — ( 25 ) — ( 25 ) —

Balance at June 30, 2024

$ 544 $ 57 $ 24 $ 625 $ 55

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 April 1, 2024

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

Total (gains) losses included in:

Net income 1 (2) 91 (2) 325 (3) 417 1 (4)

Issues — 8 39 47 6

Settlements ( 1 ) ( 43 ) ( 88 ) ( 132 ) ( 9 )

Balance at June 30, 2024

$ 52 $ 944 $ 1,896 $ 2,892 $ 69

Changes in unrealized (gains) losses in net income relating to liabilities held at June 30, 2024

$ — $ 91 (2) $ 325 (3) $ 416 $ —

Available-for-Sale Securities Receivables

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

(in millions)

Balance at April 1, 2023

$ 440 $ 5 $ 445 $ 48

Total gains (losses) included in:

Net income — — — (1) 2

Other comprehensive income (loss) ( 7 ) — ( 7 ) —

Purchases 23 — 23 —

Settlements ( 10 ) ( 2 ) ( 12 ) ( 1 )

Balance at June 30, 2023

$ 446 $ 3 $ 449 $ 49

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

$ ( 7 ) $ — $ ( 7 ) $ —

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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 April 1, 2023

$ 44 $ 771 $ 142 $ 957 $ 70

Total (gains) losses included in:

Net income 2 (2) 54 (2) 426 (3) 482 1 (4)

Issues — 16 19 35 19

Settlements — ( 32 ) ( 30 ) ( 62 ) ( 12 )

Balance at June 30, 2023

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

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

$ — $ 54 (2) $ 426 (3) $ 480 $ —

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 January 1, 2024

5 unchanged sentences

Settlements ( 25 ) ( 2 ) — ( 27 ) ( 2 )

Balance at March 31, 2024

Transfers out of Level 3 — ( 25 ) — ( 25 ) —

Balance at June 30, 2024

$ 544 $ 57 $ 24 $ 625 $ 55

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

Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2024

$ ( 3 ) $ — $ — $ ( 3 ) $ —

8 unchanged sentences

Settlements ( 2 ) ( 76 ) ( 144 ) ( 222 ) ( 17 )

Balance at March 31, 2024

Balance at June 30, 2024

$ 52 $ 944 $ 1,896 $ 2,892 $ 69

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

Changes in unrealized (gains) losses in net income relating to liabilities held at June 30, 2024

$ — $ 133 (2)

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Available-for-Sale Securities Receivables

4 unchanged sentences

Total gains (losses) included in:

Net income — — — (1) 2

Other comprehensive income (loss) 1 — 1 —

1 unchanged sentence

Settlements ( 38 ) ( 3 ) ( 41 ) ( 1 )

Balance at March 31, 2023

Balance at June 30, 2023

$ 446 $ 3 $ 449 $ 49

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

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

$ 1 $ — $ 1 $ —

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Policyholder Account Balances, Future Policy Benefits and Claims Other Liabilities

8 unchanged sentences

Settlements ( 1 ) ( 62 ) ( 26 ) ( 89 ) ( 19 )

Balance at March 31, 2023

Balance at June 30, 2023

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

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

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

(1) Included in Net investment income.

3 unchanged sentences

(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.

The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $ 19 million and $ 4 million, net of the reinsurance accrual, for the three months ended June 30, 2024 and 2023, respectively.

The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $ 19 million and $ 61 million, net of the reinsurance accrual, for the six months ended June 30, 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.

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

March 31, 2024

June 30, 2024

Fair Value Valuation Technique Unobservable Input Range Weighted Average

22 unchanged sentences

0.0 % – 10.5 % 3.1 %

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

December 31, 2023

31 unchanged sentences

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.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Uncertainty of Fair Value Measurements

10 unchanged sentences

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

cash flows to a single discounted present value amount.

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

13 unchanged sentences

The fair value of securities included in an observable transaction with a market participant are also considered Level 2 when the market is not active.

Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and asset backed securities with fair value typically based on a single non-binding broker quote.

Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities, and asset backed securities with fair value typically based on a single non-binding broker quote.

The underlying inputs used for some of the non-binding broker quotes are not readily available to the Company.

3 unchanged sentences

Given the significance of the unobservable inputs to this fair value measurement, the fair value of the investment in certain asset backed securities is classified as Level 3.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Management is responsible for the fair values recorded on the financial statements.

18 unchanged sentences

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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 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 March 31, 2024 and December 31, 2023.

The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of both June 30, 2024 and December 31, 2023.

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

15 unchanged sentences

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Other Liabilities

3 unchanged sentences

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

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

The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of both June 30, 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 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)

The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $ 35 million and $ 41 million as of June 30, 2024 and December 31, 2023, respectively, and is classified as Level 3 in the fair value hierarchy.

Assets and Liabilities Not Reported at Fair Value

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

March 31, 2024

June 30, 2024

Carrying Value Fair Value

14 unchanged sentences

Debt and other liabilities 4,067 464 3,561 4 4,029

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

December 31, 2023

25 unchanged sentences

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)

Offsetting Assets and Liabilities

6 unchanged sentences

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

March 31, 2024

June 30, 2024

Gross Amounts of Recognized Assets

30 unchanged sentences

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

March 31, 2024

June 30, 2024

Gross Amounts of Recognized Liabilities

14 unchanged sentences

Total $ 5,489 $ — $ 5,489 $ ( 4,959 ) $ ( 3 ) $ ( 444 ) $ 83

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

December 31, 2023

36 unchanged sentences

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

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Notional Gross Fair Value Notional Gross Fair Value

30 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 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.

(3) The fair value of the structured variable annuity embedded derivatives as of June 30, 2024 included $ 1.9 billion of individual embedded derivatives in a liability position and $ 1 million of individual embedded derivatives 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 embedded derivatives in a liability position and $ 15 million of individual embedded derivatives in an asset position.

See Note 12 for additional information regarding the Company’s fair value measurement of derivative instruments.

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.

As of June 30, 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 $ 156 million and $ 145 million, respectively, may be sold, pledged or rehypothecated by the counterparty.

As of June 30, 2024 and December 31, 2023, investment securities with a fair value of $ 1.3 billion and $ 376 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $ 1.1 billion and $ 314 million, respectively, may be sold, pledged or rehypothecated by the Company.

As of both June 30, 2024 and December 31, 2023, the Company had sold, pledged or rehypothecated none of these securities.

In addition, as of both June 30, 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.

4 unchanged sentences

(in millions)

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Interest rate contracts $ — $ — $ — $ — $ — $ ( 188 ) $ —

7 unchanged sentences

Total gain (loss) $ ( 3 ) $ — $ 14 $ ( 22 ) $ ( 73 ) $ ( 300 ) $ 1

Three Months Ended March 31, 2023

Three Months Ended June 30, 2023

Interest rate contracts $ — $ — $ — $ — $ ( 14 ) $ ( 481 ) $ —

7 unchanged sentences

Total gain (loss) $ ( 1 ) $ — $ 45 $ 12 $ ( 94 ) $ ( 833 ) $ 8

The Company holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment.

These derivative instruments are used as economic hedges of equity, interest rate, credit and foreign currency exchange rate risk related to various products and transactions of the Company.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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 General and Administrative Expense

(in millions)

Six Months Ended June 30, 2024

Interest rate contracts $ — $ — $ — $ — $ ( 8 ) $ ( 721 ) $ —

Equity contracts ( 5 ) 2 81 47 850 ( 728 ) 6

Credit contracts — — ( 2 ) — — 99 —

Foreign exchange contracts — — — — — 57 ( 2 )

IUL embedded derivatives — — — ( 57 ) — — —

Fixed deferred indexed annuity and deposit receivables embedded derivatives — — — 10 — — —

Structured variable annuity embedded derivatives — — — — ( 953 ) — —

SMC embedded derivatives — ( 2 ) — — — — —

Total gain (loss) $ ( 5 ) $ — $ 79 $ — $ ( 111 ) $ ( 1,293 ) $ 4

Six Months Ended June 30, 2023

Interest rate contracts $ — $ — $ — $ — $ ( 8 ) $ ( 234 ) $ —

Equity contracts ( 2 ) 3 88 54 510 ( 900 ) 8

Credit contracts — — 1 — — 33 —

Foreign exchange contracts — — — — — 12 6

IUL embedded derivatives — — — ( 30 ) — — —

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

Structured variable annuity embedded derivatives — — — — ( 689 ) — —

SMC embedded derivatives — ( 4 ) — — — — —

Total gain (loss) $ ( 2 ) $ ( 1 ) $ 89 $ 22 $ ( 187 ) $ ( 1,089 ) $ 14

The Company holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment.

These derivative instruments are used as economic hedges of equity, interest rate, credit and foreign currency exchange rate risk related to various products and transactions of the Company.

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 March 31, 2024:

The following is a summary of the payments the Company is scheduled to make and receive for these options as of June 30, 2024:

Premiums Payable Premiums Receivable

1 unchanged sentence

Total $ 852 $ 108

(1) 2024 amounts represent the amounts payable and receivable for the period from April 1, 2024 to December 31, 2024.

(1) 2024 amounts represent the amounts payable and receivable for the period from July 1, 2024 to December 31, 2024.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Actual timing and payment amounts may differ due to future settlements, modifications or exercises of the contracts prior to the full premium being paid or received.

13 unchanged sentences

The 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 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.

For both the six months ended June 30, 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 June 30, 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 11 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 March 31, 2024 and 2023, the Company recognized an immaterial gain and a loss of $ 2 million, respectively, in other comprehensive income (loss) (“OCI”).

For the three months ended June 30, 2024 and 2023, the Company recognized a gain of $ 1 million and a loss of $ 1 million, respectively, in other comprehensive income (loss) (“OCI”).

For the six months ended June 30, 2024 and 2023, the Company recognized a gain of $ 1 million and a loss of $ 3 million, respectively, in OCI.

Credit risk associated with the Company’s derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract.

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

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.

Key components of this 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 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.

As of June 30, 2024 and December 31, 2023, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $ 98 million and $ 65 million, respectively.

The aggregate fair value of assets posted as collateral for such instruments as of June 30, 2024 and December 31, 2023 was $ 88 million and $ 58 million, respectively.

If the credit contingent provisions of derivative contracts in a net liability position as of June 30, 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 $ 10 million and $ 7 million, respectively.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Shareholders’ Equity

The following table presents the amounts related to each component of OCI:

Three Months Ended March 31,

Three Months Ended June 30,

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

7 unchanged sentences

Net unrealized gains (losses) on securities ( 172 ) 37 ( 135 ) ( 439 ) 101 ( 338 )

Effect of changes in discount rate assumptions on certain long-duration contracts 79 ( 17 ) 62 75 ( 16 ) 59

Effect of changes in instrument-specific credit risk on MRBs 13 ( 4 ) 9 ( 159 ) 33 ( 126 )

Foreign currency translation 2 ( 1 ) 1 52 ( 11 ) 41

Total other comprehensive income (loss) $ ( 78 ) $ 15 $ ( 63 ) $ ( 471 ) $ 107 $ ( 364 )

Six Months Ended June 30,

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

(in millions)

Net unrealized gains (losses) on securities:

Net unrealized gains (losses) on securities arising during the period (1)

$ ( 416 ) $ 90 $ ( 326 ) $ 127 $ ( 23 ) $ 104

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

2 — 2 ( 9 ) 2 ( 7 )

Impact of benefit reserves and reinsurance recoverables 14 ( 3 ) 11 ( 6 ) 1 ( 5 )

Net unrealized gains (losses) on securities ( 400 ) 87 ( 313 ) 112 ( 20 ) 92

Net unrealized gains (losses) on derivatives:

20 unchanged sentences

(in millions)

Balance at April 1, 2024

$ ( 1,419 ) $ 5 $ ( 57 ) $ ( 122 ) $ ( 60 ) $ ( 276 ) $ ( 1 ) $ ( 1,930 )

OCI before reclassifications ( 137 ) — 62 9 — 1 — ( 65 )

Amounts reclassified from AOCI 2 — — — — — — 2

Total OCI ( 135 ) — 62 9 — 1 — ( 63 )

Balance at June 30, 2024

$ ( 1,554 ) $ 5 $ 5 $ ( 113 ) $ ( 60 ) $ ( 275 ) $ ( 1 ) $ ( 1,993 )

Balance at April 1, 2023

$ ( 1,613 ) $ 5 $ ( 137 ) $ 141 $ ( 75 ) $ ( 305 ) $ ( 1 ) $ ( 1,985 )

OCI before reclassifications ( 333 ) — 59 ( 126 ) — 41 — ( 359 )

Amounts reclassified from AOCI ( 5 ) — — — — — — ( 5 )

Total OCI ( 338 ) — 59 ( 126 ) — 41 — ( 364 )

Balance at June 30, 2023

$ ( 1,951 ) $ 5 $ ( 78 ) $ 15 $ ( 75 ) $ ( 264 ) $ ( 1 ) $ ( 2,349 )

Balance at January 1, 2024

1 unchanged sentence

OCI before reclassifications ( 315 ) — 131 ( 28 ) — ( 17 ) — ( 229 )

Amounts reclassified from AOCI 2 — — — — — — 2

Total OCI ( 313 ) — 131 ( 28 ) — ( 17 ) — ( 227 )

Balance at March 31, 2024

Balance at June 30, 2024

$ ( 1,554 ) $ 5 $ 5 $ ( 113 ) $ ( 60 ) $ ( 275 ) $ ( 1 ) $ ( 1,993 )

4 unchanged sentences

Total OCI 92 2 ( 6 ) 35 — 74 — 197

Balance at March 31, 2023

Balance at June 30, 2023

$ ( 1,951 ) $ 5 $ ( 78 ) $ 15 $ ( 75 ) $ ( 264 ) $ ( 1 ) $ ( 2,349 )

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.

For the six months ended June 30, 2024 and 2023, the Company repurchased a total of 2.5 million shares and 3.2 million shares, respectively, of its common stock for an aggregate cost of $ 1.0 billion and $ 998 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 March 31, 2024, the Company had $ 2.6 billion remaining under this share repurchase authorization.

As of June 30, 2024, the Company had $ 2.1 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 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.

For both the six months ended June 30, 2024 and 2023, the Company reacquired 0.3 million shares of its common stock through the surrender of shares upon vesting and paid in the aggregate $ 104 million and $ 88 million, respectively, related to the holders’ income tax obligations on the vesting date.

Option holders may elect to net settle their vested awards resulting in the surrender of the number of shares required to cover the strike price and tax obligation of the options exercised.

These shares are reacquired by the Company and recorded as treasury shares.

For the three months ended March 31, 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.

For the six months ended June 30, 2024 and 2023, the Company reacquired 0.3 million shares and 0.2 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $ 119 million and $ 73 million, respectively.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

During the six months ended June 30, 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 21.1 % for both the three months ended June 30, 2024 and 2023.

The Company’s effective tax rate was 19.9 % and 19.5 % for the six months ended June 30, 2024 and 2023, respectively.

The effective tax rate for the three months ended June 30, 2024 was higher than the statutory rate as a result of state income taxes, net of federal benefit.

The effective tax rate for the six months ended June 30, 2024 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 June 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 six months ended June 30, 2023 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 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 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;

Based on analysis of the Company’s tax position as of June 30, 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 $ 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.

The valuation allowance was $ 66 million and $ 65 million as of June 30, 2024 and December 31, 2023, respectively.

As of June 30, 2024 and December 31, 2023, the Company had $ 154 million and $ 150 million, respectively, of gross unrecognized tax benefits.

If recognized, approximately $ 125 million and $ 120 million, net of federal tax benefits, of unrecognized tax benefits as of June 30, 2024 and December 31, 2023, 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.

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 $ 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 recognized a net increase of $ 1 million and $ 3 million in interest and penalties for the three and six months ended June 30, 2024, respectively.

The Company recognized a net increase of $ 7 million and $ 8 million in interest and penalties for the three and six months ended June 30, 2023, respectively.

As of June 30, 2024 and December 31, 2023, the Company had a payable of $ 29 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.

4 unchanged sentences

The Company is an applicable corporation required to compute corporate alternative minimum tax (“CAMT”).

however, based on current estimates the Company does not expect to be liable for the CAMT in 2024 and therefore a liability has not been recorded.

As of June 30, 2024 and December 31, 2023, the Company recorded an estimate of $ 43 million and nil , respectively, for the provision of the Federal CAMT based on the Company’s interpretation of available guidance.

This was offset with an increase to the deferred tax asset for the credit carryover, which does not expire, resulting in no impact to the total tax provision.

The estimate is based on interpretations and assumptions the Company has made regarding the CAMT provisions of the Inflation Reduction Act of 2022.

Department of the Treasury is expected to issue additional regulatory guidance in 2024 that may materially change the estimated provision of the CAMT.

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 intends to rely on Pillar Two transitional safe harbors where available

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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.

9 unchanged sentences

The Company typically has numerous pending matters which include information requests, exams or inquiries regarding certain subjects, including from time to time:

sales and distribution of, and disclosure practices related to, mutual and other pooled funds, exchange traded funds, private funds, segregated accounts, annuities, equity and fixed income securities, real estate investment trusts, insurance products, banking products and financial advice offerings, including managed accounts;

sales and distribution of, and disclosure practices related to, mutual and other pooled funds, exchange traded funds, private funds, segregated accounts, annuities, equity and fixed income securities, real estate investment trusts, insurance products, banking products, brokerage offerings, including money settlement options, and financial advice offerings, including managed accounts;

wholesaler activity;

2 unchanged sentences

security of client information;

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

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

recordkeeping requirements;

4 unchanged sentences

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.

As of June 30, 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

5 unchanged sentences

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

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.

As of both June 30, 2024 and December 31, 2023, the estimated liability was $ 34 million.

As of both June 30, 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 March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in millions, except per share amounts)

6 unchanged sentences

Diluted $ 8.02 $ 8.21 $ 17.49 $ 11.97

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.

The calculation of diluted earnings per share excludes the incremental effect of nil options for both the three months ended June 30, 2024 and 2023, and 0.1 million and 0.2 million options for the six months ended June 30, 2024 and 2023, respectively, due to their anti-dilutive effect.

Segment Information

9 unchanged sentences

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);

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

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

5 unchanged sentences

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:

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(in millions)

5 unchanged sentences

Total assets $ 179,700 $ 175,191

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

2024 2023 2024 2023

(in millions)

3 unchanged sentences

Asset Management

848 808 1,703 1,607

Retirement & Protection Solutions 928 858 1,840 1,682

Corporate & Other

111 148 232 274

Elimination of segment revenues (1)(2)

1 unchanged sentence

Total segment adjusted operating net revenues

4,171 3,826 8,271 7,524

Net realized investment gains (losses)

( 3 ) 3 ( 3 ) 6

Market impact on non-traditional long-duration products ( 1 ) 1 1 1

1 unchanged sentence

Total net revenues per consolidated statements of operations $ 4,220 $ 3,876 $ 8,366 $ 7,618

(1) Represents the elimination of intersegment revenues recognized for the three months ended March 31, 2024 and 2023 in each segment as follows:

(1) Represents the elimination of intersegment revenues recognized for the three months ended June 30, 2024 and 2023 in each segment as follows:

Advice & Wealth Management ($ 236 million and $ 211 million, respectively);

2 unchanged sentences

and Corporate & Other ($( 7 ) million and $( 3 ) million, respectively).

Three Months Ended March 31,

(2) Represents the elimination of intersegment revenues recognized for the six months ended June 30, 2024 and 2023 in each segment as follows:

Advice & Wealth Management ($ 461 million and $ 412 million, respectively);

Asset Management ($ 47 million and $ 36 million, respectively);

Retirement & Protection Solutions ($ 214 million and $ 206 million, respectively);

and Corporate & Other ($( 14 ) million and $( 7 ) million, respectively).

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Three Months Ended June 30,

Six Months Ended June 30,

2024 2023 2024 2023

(in millions)

1 unchanged sentence

Advice & Wealth Management

$ 822 $ 731 $ 1,584 $ 1,424

Asset Management

218 162 424 327

Retirement & Protection Solutions 196 189 395 383

2 unchanged sentences

Total segment adjusted operating earnings

1,117 1,022 2,195 2,000

Net realized investment gains (losses) ( 3 ) 3 ( 3 ) 6

2 unchanged sentences

Net income (loss) attributable to consolidated investment entities

( 3 ) — ( 2 ) —

Pretax income per consolidated statements of operations $ 1,051 $ 1,127 $ 2,270 $ 1,623

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