What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2024-08-06 compared with 2024-05-06 · 392 added, 139 removed, 518 unchanged (51% of the section changed)

4 unchanged sentences

exclusively, to our entire family of companies, or to one or more of our subsidiaries.

Ameriprise Financial is a diversified financial services company with a nearly 130-year history of providing financial solutions.

We are a long-standing leader in financial planning and advice with $1.4 trillion in assets under management and administration as of March 31, 2024.

Ameriprise Financial is a diversified financial services company with a 130-year history of providing financial solutions.

We are a long-standing leader in financial planning and advice with $1.4 trillion in assets under management and administration as of June 30, 2024.

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

49 unchanged sentences

Per Diluted Share

Three Months Ended March 31,

Six Months Ended June 30,

(in millions, except per share amounts)

2 unchanged sentences

Net realized investment gains (losses) (1)

(3) 6 (0.03) 0.05

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

13 unchanged sentences

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

Twelve Months Ended March 31,

Twelve Months Ended June 30,

(in millions)

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

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(in millions)

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The following table presents relevant market indices:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Daily average 5,253 4,207 25% 5,125 4,103 25%

21 unchanged sentences

Asset Management AUM 641.9 616.6 25.3 4

Corporate AUM 0.4 0.2 0.2 NM

Corporate AUM 0.5 0.3 0.2 67

Eliminations (44.1) (39.3) (4.8) (12)

2 unchanged sentences

Total AUM and AUA $ 1,427.9 $ 1,276.8 $ 151.1 12 %

NM Not Meaningful - variance equal to or greater than 100%.

Total AUM increased $126.1 billion, or 13%, to $1.1 trillion as of March 31, 2024 compared to $1.0 trillion as of March 31, 2023 due to an $86.7 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $44.4 billion increase in Asset Management AUM primarily driven by equity market appreciation.

Total AUA increased $63.2 billion, or 27%, to $297.5 billion as of March 31, 2024 compared to the prior year period primarily driven by equity market appreciation and an increase in third-party money market funds and brokered CDs.

Total AUM increased $100.7 billion, or 10%, to $1.1 trillion as of June 30, 2024 compared to $1.0 trillion as of June 30, 2023 due to an $80.0 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $25.3 billion increase in Asset Management AUM primarily driven by equity market appreciation, partially offset by net outflows.

Total AUA increased $50.4 billion, or 20%, to $298.4 billion as of June 30, 2024 compared to the prior year period primarily driven by equity market appreciation and an increase in third-party money market funds and brokered CDs.

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

AMERIPRISE FINANCIAL, INC.

Consolidated Results of Operations for the Three Months Ended March 31, 2024 and 2023

Consolidated Results of Operations for the Three Months Ended June 30, 2024 and 2023

The following table presents our consolidated results of operations:

Three Months Ended March 31,

Three Months Ended June 30,

(in millions)

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Pretax income 1,051 1,127 (76) (7)

1,219 496 723 NM

Income tax provision 229 79 150 NM

Net income $ 990 $ 417 $ 573 NM

Income tax provision 222 237 (15) (6)

Net income $ 829 $ 890 $ (61) (7) %

NM Not Meaningful - variance equal to or greater than 100%.

Pretax income increased $723 million for the three months ended March 31, 2024 compared to the prior year period.

• The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was a benefit of $140 million for the three months ended March 31, 2024 compared to an expense of $475 million for the prior year period.

Pretax income decreased $76 million, or 7%, for the three months ended June 30, 2024 compared to the prior year period.

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

• The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was an expense of $60 million for the three months ended June 30, 2024 compared to a benefit of $127 million for the prior year period.

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

• A favorable impact from the trend in rising interest rates on the investment portfolio yield, along with higher balances in bank, certificate and structured variable annuities (“SVA”) products.

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

Our average WEI, which is a proxy for equity movements on AUM, increased 21% in the quarter compared to the prior year period.

Our average WEI, which is a proxy for equity movements on AUM, increased 21% in the three months ended June 30, 2024 compared to the prior year period.

The average S&P 500 index was 25% higher in the quarter compared to the prior year period.

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

Management and financial advice fees increased $262 million, or 12%, for the three months ended March 31, 2024 compared to the prior year period reflecting market appreciation and continued wrap account net inflows, partially offset by the cumulative impact of Asset Management net outflows.

Distribution fees decreased $11 million, or 2%, for the three months ended March 31, 2024 compared to the prior year period due to $76 million of lower fees on off-balance sheet brokerage cash due to a decrease in average balances, partially offset by strong transactional activity.

• A favorable impact from the cumulative impact of wrap net inflows and higher transactional activity in Advice & Wealth Management.

Management and financial advice fees increased $257 million, or 12%, for the three months ended June 30, 2024 compared to the prior year period reflecting market appreciation and wrap account net inflows, partially offset by the cumulative impact of Asset Management net outflows.

Distribution fees increased $23 million, or 5%, for the three months ended June 30, 2024 compared to the prior year period primarily due to higher transactional activity and market appreciation, partially offset by $44 million of lower fees on off-balance sheet brokerage cash due to lower off-balance sheet brokerage cash balances.

AMERIPRISE FINANCIAL, INC.

Net investment income increased $203 million, or 29%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting:

• The favorable impact of growth in Ameriprise Bank, FSB (“Ameriprise Bank”) customer deposits and certificate business as a result of the market environment along with higher average balances due to the growth in SVAs.

Net investment income increased $110 million, or 14%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting the following items:

• The favorable impact of growth in Ameriprise Bank, FSB (“Ameriprise Bank”) customer deposits and certificate business as a result of the market environment.

• The favorable impact of the trend in rising interest rates on the investment portfolio yield.

Premiums, policy and contract charges increased $28 million, or 8%, for the three months ended March 31, 2024 compared to the prior year period primarily due to higher sales of life contingent payout annuities.

Banking and deposit interest expense increased $76 million for the three months ended March 31, 2024 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and Ameriprise Bank cash deposits.

Distribution expenses increased $193 million, or 16%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting higher advisor compensation from higher average wrap account assets and increased transactional activity, as well as continued investments in recruiting experienced advisors.

Interest credited to fixed accounts decreased $32 million, or 20%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the following items:

• A $78 million decrease in expense from other market impacts on indexed universal life (“IUL”) benefits, net of hedges, which was a benefit of $32 million for the three months ended March 31, 2024 compared to an expense of $46 million for the prior year period.

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

• A $47 million increase in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits.

The unfavorable impact of the nonperformance credit spread was $17 million for the three months ended March 31, 2024 compared to a favorable impact of $30 million for the prior year period.

Benefits, claims, losses and settlement expenses decreased $6 million, or 2%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the following items:

• A $68 million decrease in expense from market impacts on SVA embedded derivative, net of hedges in place to offset those risks.

This decrease was primarily the result of a favorable $421 million change in the market impact on derivatives hedging the SVA embedded derivative and an unfavorable $340 million change in the market impact on SVA embedded derivative.

The main market driver contributing to these changes was the equity market impact on the SVA embedded derivative net of the impact on the corresponding hedge assets resulted in an lower expense for the three months ended March 31, 2024 compared to the prior year period.

• Partially offset by the impact of higher sales of life contingent payout annuities and increased volume in SVAs.

Change in fair value of market risk benefits decreased $507 million, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the following items:

• A $520 million decrease in expense from market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks.

This decrease was the result of a favorable $1.3 billion change in the market impact on variable annuity guaranteed benefits reserves and an unfavorable $738 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits.

Banking and deposit interest expense increased $41 million, or 31%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and Ameriprise Bank cash deposits.

Distribution expenses increased $202 million, or 16%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting higher market appreciation and higher transactional activity.

Interest credited to fixed accounts increased $24 million, or 15%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting the following items:

• A $59 million increase in expense from other market impacts on indexed universal life (“IUL”) benefits, net of hedges, which was an expense of $44 million for the three months ended June 30, 2024 compared to a benefit of $15 million for the prior year period.

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

• A $27 million decrease in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits.

The favorable impact of the nonperformance credit spread was $5 million for the three months ended June 30, 2024 compared to an unfavorable impact of $22 million for the prior year period.

Benefits, claims, losses and settlement expenses increased $4 million, or 1%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting the impact of increased volume in SVAs.

This increase was partially offset by a $23 million decrease in expense from market impacts on SVA embedded derivative, net of hedges in place to offset those risks.

This decrease was primarily the result of a favorable $107 million change in the market impact on SVA embedded derivative and an unfavorable $81 million change in the market impact on derivatives hedging the SVA embedded derivative.

The main market driver contributing to these changes was the equity market impact on the SVA embedded derivative net of the impact on the corresponding hedge assets resulted in a benefit for the three months ended June 30, 2024 compared to an expense in the prior year period.

Change in fair value of market risk benefits increased $209 million, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting the following items:

• A $188 million increase in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks.

This increase was the result of an unfavorable $725 million change in the market impact on variable annuity guaranteed benefits reserves, partially offset by a favorable $534 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits.

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

• Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a higher benefit for the three months ended March 31, 2024 compared to the prior year period.

• Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the three months ended March 31, 2024 compared to an expense for the prior year period.

• Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a higher expense for the three months ended March 31, 2024 compared to the prior year period.

• Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a higher net expense for the three months ended March 31, 2024 compared to the prior year period.

Interest and debt expense increased $10 million, or 14%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the issuance of $750 million and $600 million of unsecured senior notes in March 2023 and November 2023, respectively, partially offset by the maturity of $750 million of unsecured senior notes in October 2023.

AMERIPRISE FINANCIAL, INC.

General and administrative expense increased $23 million, or 2%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting higher volume related expenses and investments for business growth, an unfavorable change in the mark-to-market impact on share-based compensation due to share price appreciation, partially offset by higher one-time expenses in the prior year period.

Our effective tax rate was 18.8 % for the three months ended March 31, 2024 compared to 15.9 % for the prior year period.

The increase in the effective tax rate for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 was primarily due to 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 year period.

• Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower benefit for the three months ended June 30, 2024 compared to the prior year period.

• Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower benefit for the three months ended June 30, 2024 compared to the prior year period.

• Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a lower net expense for the three months ended June 30, 2024 compared to the prior year period.

General and administrative expense decreased $10 million, or 1%, for the three months ended June 30, 2024 compared to the prior year period primarily due to our continued focus on operational efficiency and effectiveness, partially offset by $24 million of higher severance expense and higher volume related expenses and investments for business growth.

Our effective tax rate was 21.1% for the three months ended June 30, 2024 compared to 21.1% for the prior year period.

See Note 16 to our Consolidated Financial Statements for additional discussion on income taxes.

Results of Operations by Segment for the Three Months Ended March 31, 2024 and 2023

Results of Operations by Segment for the Three Months Ended June 30, 2024 and 2023

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

Adjusted operating earnings should not be viewed as a substitute for GAAP pretax income.

We believe the presentation of segment adjusted

AMERIPRISE FINANCIAL, INC.

operating earnings as we measure it for management purposes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitating a more meaningful trend analysis.

See Note 19 to the Consolidated Financial Statements for further information on the presentation of segment results and our definition of adjusted operating earnings.

The following table presents summary financial information by segment:

Three Months Ended March 31,

Three Months Ended June 30,

(in millions)

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Advice & Wealth Management

The following table presents the changes in wrap account assets and average balances for the three months ended March 31:

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

(in billions)

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

(2) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period excluding the most recent month for the three months ended March 31, 2024 and 2023, which is reflective of our billing cycle.

Ending wrap account assets increased $33.5 billion, or 7%, to $521.7 billion during the three months ended March 31, 2024 due to market appreciation and other of $27.0 billion and net inflows of $6.5 billion.

Average advisory wrap account assets increased $71.2 billion, or 17%, compared to the prior year period reflecting market appreciation and net inflows.

(2) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period excluding the most recent month for the three months ended June 30, 2024 and 2023, which is reflective of our billing cycle.

Ending wrap account assets increased $13.3 billion, or 3%, to $535.0 billion during the three months ended June 30, 2024 due to net inflows of $7.5 billion and market appreciation of $5.8 billion.

Average advisory wrap account assets increased $81.0 billion, or 19%, compared to the prior year period primarily reflecting market appreciation and net inflows.

AMERIPRISE FINANCIAL, INC.

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

Three Months Ended March 31,

Three Months Ended June 30,

(in millions)

11 unchanged sentences

Adjusted operating earnings $ 822 $ 731 $ 91 12 %

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $69 million, or 10%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting market appreciation, higher short-term interest rates and growth in bank cash deposits and certificate products along with the cumulative impact of client net flows.

Pretax adjusted operating margin was 29.8% for the for the three months ended March 31, 2024 compared to 30.6% for the prior year period.

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $91 million, or 12%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting higher average wrap account balances due to market appreciation and net inflows.

Pretax adjusted operating margin was 31.1% for the three months ended June 30, 2024 compared to 31.2% for the prior year period.

Ameriprise Bank is continuing its deposit growth trend, with bank deposit balances increasing $0.5 billion from the prior year period to $21.5 billion.

The daily average interest-bearing deposit balance increased to $21.3 billion for the three months ended March 31, 2024 compared to $19.0 billion for the prior year period with the average interest rate paid on deposits increasing to 0.42% for the three months ended March 31, 2024 from 0.36% for the prior year period.

The daily average interest-bearing deposit balance increased to $21.3 billion for the three months ended June 30, 2024 compared to $20.6 billion for the prior year period with the average interest rate paid on deposits increasing to 0.44% for the three months ended June 30, 2024 from 0.38% for the prior year period.

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

The Ameriprise Certificate Company experienced strong growth given the current interest rate environment with client deposits increasing $2.1 billion from the prior year period to $13.2 billion.

Management and financial advice fees increased $210 million, or 16%, for the three months ended March 31, 2024 compared to the prior year period primarily due to higher average wrap account assets.

Average advisory wrap account assets increased $71.2 billion, or 17%, compared to the prior year period reflecting market appreciation and net inflows.

Distribution fees increased $5 million, or 1%, for the three months ended March 31, 2024 compared to the prior year period reflecting strong transactional activity, partially offset by $76 million of lower fees on off-balance sheet brokerage cash due to a decrease in average balances.

Net investment income, which excludes net realized investment gains or losses, increased $151 million, or 37%, for the three months ended March 31, 2024 compared to the prior year period primarily due to higher average invested assets due to increased bank and certificate deposits and the favorable impact of increased short-term interest rates, including higher investment yields on the investment portfolio supporting the bank and certificate products.

Banking and deposit interest expense increased $76 million, or 74%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting higher average crediting rates and higher average balances on certificates and bank cash deposits.

Distribution expenses increased $196 million, or 17%, for the three months ended March 31, 2024 compared to the prior year period reflecting higher advisor compensation from higher average wrap account assets and increased transactional activity, as well as continued investments in recruiting experienced advisors.

General and administrative expense increased $28 million, or 7%, for the three months ended March 31, 2024 compared to the prior year period primarily due to higher volume related expenses and investments for business growth.

Ameriprise Certificate Company (“ACC”) client deposits increased $0.5 billion from the prior year period to $12.5 billion.

After a period of strong growth during a rising interest rate environment, ACC has experienced net outflows during the three months ended June 30, 2024.

Management and financial advice fees increased $217 million, or 16%, for the three months ended June 30, 2024 compared to the prior year period primarily due to growth in average wrap account assets.

Average advisory wrap account assets increased $81.0 billion, or 19%, compared to the prior year period primarily reflecting market appreciation and net inflows.

Distribution fees increased $39 million, or 7%, for the three months ended June 30, 2024 compared to the prior year period reflecting higher transactional activity and market appreciation, partially offset by $44 million of lower fees on off-balance sheet brokerage cash due to lower off-balance sheet brokerage cash balances.

Net investment income, which excludes net realized investment gains or losses, increased $77 million, or 16%, for the three months ended June 30, 2024 compared to the prior year period primarily due to higher average invested assets due to growth in bank cash deposits and certificate products and the favorable impact of increasing short-term interest rates, including higher investment yields on the investment portfolios supporting the products.

Banking and deposit interest expense increased $41 million, or 31%, for the three months ended June 30, 2024 compared to the prior year period primarily due to higher average crediting rates and higher average volumes on certificates and bank cash deposits.

Distribution expenses increased $207 million, or 17%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting market appreciation and higher transactional activity.

AMERIPRISE FINANCIAL, INC.

Asset Management

The following tables present the mutual fund performance of our retail Columbia Threadneedle Investments funds as of March 31, 2024:

The following tables present the mutual fund performance of our retail Columbia Threadneedle Investments funds as of June 30, 2024:

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

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Peer groupings of Columbia funds are defined by Lipper category and are based on the Primary Share Class (i.e.

Institutional if available, otherwise Advisor or Instl3 share class), net of fees.

Institutional if available, otherwise Advisor or Institutional 3 share class), net of fees.

Peer groupings of Threadneedle funds are defined by either IA or Morningstar index and are based on the Primary Share Class.

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The following table presents global managed assets by type:

As of March 31,

Change Three Months Ended March 31,

As of June 30,

Change Three Months Ended

(in billions)

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The following table presents the changes in global managed assets:

Three Months Ended March 31,

Three Months Ended June 30,

(in billions)

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(16.3) (12.1)

Net flows (6.0) (0.5)

Market appreciation (depreciation) and other (3)

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$ (9.1) $ (1.4)

(1) Amounts represent local currency to US dollar translation for reporting purposes.

(1) Amounts represent local currency to U.S.

dollar translation for reporting purposes.

(2) Global Institutional inflows and outflows include net flows from our structured annuity product and Ameriprise Bank.

1 unchanged sentence

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

Total segment AUM increased $15.2 billion, or 2%, during the three months ended March 31, 2024 primarily due to equity market appreciation, partially offset by net outflows.

Total segment AUM decreased $10.2 billion, or 2%, during the three months ended June 30, 2024 primarily due to net outflows.

Net outflows were $12.0 billion in the second quarter of 2024 and included an $8.0 billion asset transfer related to a legacy insurance partner.

AMERIPRISE FINANCIAL, INC.

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

Three Months Ended March 31,

Three Months Ended June 30,

(in millions)

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Distribution expenses 244 233 11 5

Amortization of deferred acquisition costs 2 1 1 NM

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

Interest and debt expense 1 1 — —

2 unchanged sentences

Adjusted operating earnings $ 218 $ 162 $ 56 35 %

NM Not Meaningful - variance equal to or greater than 100%.

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $41 million, or 25%, for the three months ended March 31, 2024 compared to the prior year period primarily due to equity market appreciation, partially offset by the cumulative impact from net outflows.

Management and financial advice fees increased $48 million, or 7%, for the three months ended March 31, 2024 compared to the prior year period primarily due to equity market appreciation and an increase in performance fees, partially offset by the cumulative impact from net outflows.

Distribution fees increased $5 million, or 6%, for the three months ended March 31, 2024 compared to the prior year period primarily due to market appreciation.

Distribution expenses increased $12 million, or 5%, for the three months ended March 31, 2024 compared to the prior year period primarily due to market appreciation, partially offset by the cumulative impact from net outflows.

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $56 million, or 35%, for the three months ended June 30, 2024 compared to the prior year period primarily due to equity market appreciation and the positive impact from expense management actions, partially offset by the cumulative impact from net outflows.

Management and financial advice fees increased $39 million, or 6%, for the three months ended June 30, 2024 compared to the prior year period primarily due to higher average equity markets, partially offset by the cumulative impact from net outflows.

Distribution fees increased $6 million, or 7%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting market appreciation, partially offset by the cumulative impact from net outflows.

Distribution expenses increased $11 million, or 5%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting market appreciation, partially offset by the cumulative impact from net outflows.

General and administrative expense decreased $26 million, or 6%, for the three months ended June 30, 2024 compared to the prior year period reflecting the ongoing benefits from our initiatives to enhance operational efficiency and effectiveness.

AMERIPRISE FINANCIAL, INC.

1 unchanged sentence

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

Three Months Ended March 31,

Three Months Ended June 30,

(in millions)

17 unchanged sentences

Adjusted operating earnings $ 196 $ 189 $ 7 4 %

Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $5 million, or 3%, for the three months ended March 31, 2024 compared to the prior year period, primarily reflecting higher interest rates and market appreciation, partially offset by higher expenses associated with increased sales.

Variable annuity account balances increased 9% to $84.0 billion as of March 31, 2024 compared to the prior year period due to market appreciation, partially offset by net outflows of $3.2 billion.

Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $7 million, or 4%, for the three months ended June 30, 2024 compared to prior year period primarily reflecting higher interest rates and market appreciation, partially offset by higher expenses associated with increased sales.

Variable annuity account balances increased 8% to $84.5 billion as of June 30, 2024 compared to the prior year period due to market appreciation, partially offset by net outflows of $3.2 billion.

Variable annuity sales increased 45% compared to the prior year period reflecting an increase in sales of SVAs.

Account values with living benefit riders declined to 53% as of March 31, 2024 compared to 57% a year ago reflecting our actions to optimize our business mix.

Account values with living benefit riders declined to 52% as of June 30, 2024 compared to 56% a year ago reflecting our actions to optimize our business mix.

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

Management and financial advice fees increased $6 million, or 3%, for the three months ended March 31, 2024 compared to the prior year period primarily due to market appreciation, partially offset by the impact from variable annuity net outflows.

Distribution fees increased $7 million, or 7%, for the three months ended March 31, 2024 compared to the prior year period primarily due to market appreciation.

Net investment income, which excludes net realized investment gains or losses, increased $48 million, or 25%, for the three months ended March 31, 2024 compared to the prior year period primarily due to higher interest rates and increased SVA balances.

Distribution expenses increased $14 million, or 13%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting market appreciation and higher sales of SVAs.

Net investment income, which excludes net realized investment gains or losses, increased $63 million, or 31%, for the three months ended June 30, 2024 compared to the prior year period primarily due to higher interest rates, investment portfolio repositioning resulting in higher yields and increased SVA balances.

Distribution expenses increased $9 million, or 8%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting market appreciation and higher sales of SVAs.

Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, increased $38 million, or 20%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting increased volume in SVAs.

Change in fair value of market risk benefits, which exclude the market impact on variable annuity guaranteed benefits (net of hedges), increased $19 million, or 15%, for the three months ended June 30, 2024 compared to the prior year period reflecting market appreciation on contractual fees.

AMERIPRISE FINANCIAL, INC.

Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, increased $62 million, or 38%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the impact of higher sales of life contingent payout annuities and increased volume in SVAs.

Change in fair value of market risk benefits, which exclude the market impact on variable annuity guaranteed benefits (net of hedges), increased $14 million, or 12%, for the three months ended March 31, 2024 compared to the prior year period reflecting market appreciation on contractual fees.

General and administrative expense decreased $9 million, or 10%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting higher one-time expenses in the prior year period.

Corporate & Other

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

Three Months Ended March 31,

Three Months Ended June 30,

(in millions)

8 unchanged sentences

Benefits, claims, losses and settlement expenses 57 58 (1) (2)

Remeasurement (gains) losses of future policy benefit reserves (3) 4 (7) NM

Amortization of deferred acquisition costs 3 2 1 50

Interest and debt expense 26 29 (3) (10)

General and administrative expense 95 60 35 58

Total expenses 230 208 22 11

Adjusted operating loss $ (119) $ (60) $ (59) (98) %

NM Not Meaningful - variance equal to or greater than 100%.

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

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

Our Corporate & Other segment pretax adjusted operating loss increased $59 million for the three months ended June 30, 2024 compared to the prior year period.

LTC insurance had a pretax adjusted operating earnings of $12 million for the three months ended June 30, 2024 compared to pretax adjusted operating earnings of $1 million for the prior year period primarily reflecting improved claims experience and the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.

The FA business had a pretax adjusted operating loss of $8 million for the three months ended June 30, 2024 compared to a pretax adjusted operating loss of $5 million for the prior year period.

Fixed deferred annuity account balances declined 11% to $5.9 billion as of June 30, 2024 compared to the prior year period as policies continue to lapse and we previously discontinued new sales of fixed deferred annuities.

Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impacts, integration and restructuring charges, and the impact of consolidating CIEs, decreased $29 million, or 38%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting a $12 million benefit in our affordable housing partnerships in the prior year period, as well as adjustments and updates made in the fourth quarter of 2023 to the allocation of investment income across business segments that reflected increased market volatility and the interest rate environment.

General and administrative expense increased $35 million, or 58%, for the three months ended June 30, 2024 compared to the prior year period primarily reflecting $24 million of higher severance expenses associated with our initiatives to enhance operational efficiency and effectiveness.

AMERIPRISE FINANCIAL, INC.

Consolidated Results of Operations for the Six Months Ended June 30, 2024 and 2023

The following table presents our consolidated results of operations:

Six Months Ended June 30,

(in millions)

Management and financial advice fees $ 4,855 $ 4,336 $ 519 12 %

Distribution fees 1,011 999 12 1

Net investment income 1,822 1,509 313 21

Premiums, policy and contract charges 771 745 26 3

Other revenues 258 263 (5) (2)

Total revenues 8,717 7,852 865 11

Banking and deposit interest expense 351 234 117 50

Total net revenues 8,366 7,618 748 10

Distribution expenses 2,869 2,474 395 16

Interest credited to fixed accounts 317 325 (8) (2)

Benefits, claims, losses and settlement expenses 626 628 (2) —

Remeasurement (gains) losses of future policy benefit reserves (12) (5) (7) NM

Change in fair value of market risk benefits 92 390 (298) (76)

Amortization of deferred acquisition costs 122 123 (1) (1)

Interest and debt expense 165 156 9 6

General and administrative expense 1,917 1,904 13 1

Total expenses 6,096 5,995 101 2

Pretax income

2,270 1,623 647 40

Income tax provision 451 316 135 43

Net income $ 1,819 $ 1,307 $ 512 39 %

NM Not Meaningful - variance equal to or greater than 100%.

Pretax income increased $647 million, or 40%, for the six months ended June 30, 2024 compared to the prior year period.

• The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was a benefit of $80 million for the six months ended June 30, 2024 compared to an expense of $348 million for the prior year period.

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

Our average WEI, which is a proxy for equity movements on AUM, increased 21% in the six months ended June 30, 2024 compared to the prior year period.

The average S&P 500 index was 25% higher in the six months ended June 30, 2024 compared to the prior year period.

• A favorable impact from the trend in rising interest rates on the investment portfolio yield, along with higher balances in bank, certificate and SVA products.

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

Management and financial advice fees increased $519 million, or 12%, for the six months ended June 30, 2024 compared to the prior year period reflecting market appreciation and continued wrap account net inflows, partially offset by the cumulative impact of Asset Management net outflows.

Distribution fees increased $12 million, or 1%, for the six months ended June 30, 2024 compared to the prior year period due to market appreciation and strong transactional activity, partially offset by $120 million of lower fees on off-balance sheet brokerage cash due to a decrease in average balances.

AMERIPRISE FINANCIAL, INC.

Net investment income increased $313 million, or 21%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting:

• The favorable impact of growth in Ameriprise Bank customer deposits and certificate business as a result of the market environment along with higher average balances due to the growth in SVAs.

• The favorable impact of the trend in rising interest rates on the investment portfolio yield.

Banking and deposit interest expense increased $117 million, or 50%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and Ameriprise Bank cash deposits.

Distribution expenses increased $395 million, or 16%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting higher advisor compensation from higher average wrap account assets and increased transactional activity, as well as continued investments in recruiting experienced advisors.

Interest credited to fixed accounts decreased $8 million, or 2%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting the following items:

• A $19 million decrease in expense from other market impacts on IUL benefits, net of hedges, which was an expense of $12 million for the six months ended June 30, 2024 compared to an expense of $31 million for the prior year period.

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

• A $20 million increase in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits.

The unfavorable impact of the nonperformance credit spread was $12 million for the six months ended June 30, 2024 compared to a favorable impact of $8 million for the prior year period.

Benefits, claims, losses and settlement expenses decreased $2 million, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting a $90 million decrease in expense from market impacts on SVA embedded derivative, net of hedges in place to offset those risks.

This decrease was primarily the result of a favorable $340 million change in the market impact on derivatives hedging the SVA embedded derivative and an unfavorable $233 million change in the market impact on SVA embedded derivative.

The main market driver contributing to these changes was the equity market impact on the SVA embedded derivative net of the impact on the corresponding hedge assets resulted in a lower expense for the six months ended June 30, 2024 compared to the prior year period.

This decrease was partially offset by the impact of higher sales of life contingent payout annuities and increased volume in SVAs.

Change in fair value of market risk benefits decreased $298 million, or 76%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting the following items:

• A $332 million decrease in expense from market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks.

This decrease was the result of a favorable $546 million change in the market impact on variable annuity guaranteed benefits reserves and an unfavorable $203 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits.

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

• Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a higher benefit for the six months ended June 30, 2024 compared to the prior year period.

• Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the six months ended June 30, 2024 compared to an expense for the prior year period.

• Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a higher expense for the six months ended June 30, 2024 compared to the prior year period.

• Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a lower net expense for the six months ended June 30, 2024 compared to the prior year period.

General and administrative expense increased $13 million, or 1%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting $28 million of higher severance expenses, higher volume related expenses and investments for business growth, partially offset by ongoing benefits from our initiatives to enhance operational efficiency and effectiveness as well as integration related expenses in the prior year period.

Our effective tax rate was 19.9 % for the six months ended June 30, 2024 compared to 19.5 % for the prior year period.

See Note 16 to our Consolidated Financial Statements for additional discussion on income taxes.

AMERIPRISE FINANCIAL, INC.

Results of Operations by Segment for the Six Months Ended June 30, 2024 and 2023

The following table presents summary financial information by segment:

Six Months Ended June 30,

(in millions)

Advice & Wealth Management

Net revenues $ 5,204 $ 4,608

Expenses 3,620 3,184

Adjusted operating earnings $ 1,584 $ 1,424

Asset Management

Net revenues $ 1,703 $ 1,607

Expenses 1,279 1,280

Adjusted operating earnings $ 424 $ 327

Retirement & Protection Solutions

Net revenues $ 1,840 $ 1,682

Expenses 1,445 1,299

Adjusted operating earnings $ 395 $ 383

Corporate & Other

Net revenues $ 232 $ 274

Expenses 440 408

Adjusted operating loss $ (208) $ (134)

Advice & Wealth Management

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

(in billions)

Beginning balance $ 488.2 $ 412.1

Net flows 14.0 11.9

Market appreciation (depreciation) and other 32.8 30.7

Ending balance $ 535.0 $ 454.7

Advisory wrap account assets ending balance (1)

$ 529.6 $ 449.9

Average advisory wrap account assets (2)

$ 501.8 $ 425.7

(1) Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts.

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

(2) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period excluding the most recent month for the six months ended June 30, 2024 and 2023, which is reflective of our billing cycle.

Ending wrap account assets increased $46.8 billion, or 10%, to $535.0 billion during the six months ended June 30, 2024 due to market appreciation and other of $32.8 billion and net inflows of $14.0 billion.

Average advisory wrap account assets increased $76.1 billion, or 18%, compared to the prior year period reflecting market appreciation and net inflows.

AMERIPRISE FINANCIAL, INC.

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

Six Months Ended June 30,

(in millions)

Management and financial advice fees $ 3,080 $ 2,653 $ 427 16 %

Distribution fees 1,206 1,162 44 4

Net investment income 1,120 892 228 26

Other revenues 149 135 14 10

Total revenues 5,555 4,842 713 15

Banking and deposit interest expense 351 234 117 50

Total net revenues 5,204 4,608 596 13

Distribution expenses 2,772 2,369 403 17

Interest and debt expense 19 13 6 46

General and administrative expense 829 802 27 3

Total expenses 3,620 3,184 436 14

Adjusted operating earnings $ 1,584 $ 1,424 $ 160 11 %

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $160 million, or 11%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting market appreciation, higher short-term interest rates and growth in bank cash deposits and certificate products along with the cumulative impact of client net flows.

Pretax adjusted operating margin was 30.4% for the for the six months ended June 30, 2024 compared to 30.9% for the prior year period.

Ameriprise Bank is continuing its deposit growth trend, with bank deposit balances increasing $0.5 billion from the prior year period to $21.5 billion.

The daily average interest-bearing deposit balance increased to $21.3 billion for the six months ended June 30, 2024 compared to $19.8 billion for the prior year period with the average interest rate paid on deposits increasing to 0.43% for the six months ended June 30, 2024 from 0.37% for the prior year period.

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

ACC client deposits increased $0.5 billion from the prior year period to $12.5 billion.

After a period of strong growth during a rising interest rate environment, ACC has experienced net outflows during the six months ended June 30, 2024.

Management and financial advice fees increased $427 million, or 16%, for the six months ended June 30, 2024 compared to the prior year period primarily due to higher average wrap account assets.

Average advisory wrap account assets increased $76.1 billion, or 18%, compared to the prior year period reflecting market appreciation and net inflows.

Distribution fees increased $44 million, or 4%, for the six months ended June 30, 2024 compared to the prior year period reflecting strong transactional activity, partially offset by $120 million of lower fees on off-balance sheet brokerage cash due to a decrease in average balances.

Net investment income, which excludes net realized investment gains or losses, increased $228 million, or 26%, for the six months ended June 30, 2024 compared to the prior year period primarily due to higher average invested assets due to increased bank and certificate deposits and the favorable impact of increased short-term interest rates, including higher investment yields on the investment portfolio supporting the bank and certificate products.

Distribution expenses increased $403 million, or 17%, for the six months ended June 30, 2024 compared to the prior year period reflecting higher advisor compensation from higher average wrap account assets and increased transactional activity, as well as continued investments in recruiting experienced advisors.

General and administrative expense increased $27 million, or 3%, for the six months ended June 30, 2024 compared to the prior year period primarily due to higher volume related expenses and investments for business growth.

AMERIPRISE FINANCIAL, INC.

Asset Management

The following table presents global managed assets by type:

As of June 30,

Change Six Months Ended

(in billions)

Equity $ 340.2 $ 316.1 $ 24.1 8 % $ 332.2 $ 309.1 $ 23.1 7 %

Fixed income 226.6 225.5 1.1 — 231.5 220.2 11.3 5

Money market 22.8 22.4 0.4 2 22.6 22.6 — —

Alternative 33.2 35.1 (1.9) (5) 33.1 34.8 (1.7) (5)

Hybrid and other 19.1 17.5 1.6 9 18.6 17.0 1.6 9

Total managed assets $ 641.9 $ 616.6 $ 25.3 4 % $ 638.0 $ 603.7 $ 34.3 6 %

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

The following table presents the changes in global managed assets:

Six Months Ended June 30,

(in billions)

Global Retail Funds

Beginning assets $ 334.9 $ 309.3

Inflows 26.6 23.6

Outflows (35.0) (32.7)

Net VP/VIT fund flows (3.2) (2.4)

Net new flows

(11.6) (11.5)

Reinvested dividends 2.8 2.1

Net flows (8.8) (9.4)

Distributions (3.3) (2.6)

Market appreciation (depreciation) and other 25.3 26.0

Foreign currency translation (1)

Total ending assets 347.5 327.4

Global Institutional

Beginning assets 302.0 274.7

(28.5) (22.8)

Market appreciation (depreciation) and other (3)

Foreign currency translation (1)

Total ending assets 294.4 289.2

Total managed assets $ 641.9 $ 616.6

Total net flows $ (17.7) $ (7.8)

Legacy insurance partners net flows (4)

$ (9.9) $ (2.2)

(1) Amounts represent local currency to US dollar translation for reporting purposes.

(2) Global Institutional inflows and outflows include net flows from our structured annuity product and Ameriprise Bank.

(3) Included in Market appreciation (depreciation) and other for Global Institutional is the change in affiliated general account balance, excluding net flows related to our structured variable annuity product and Ameriprise Bank.

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

AMERIPRISE FINANCIAL, INC.

Total segment AUM increased $5.0 billion, or 1%, during the six months ended June 30, 2024 primarily due to equity market appreciation, partially offset by net outflows.

Net outflows were $17.7 billion for the six months ended June 30, 2024 and included an $8.0 billion asset transfer related to a legacy insurance partner.

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

Six Months Ended June 30,

(in millions)

Management and financial advice fees $ 1,480 $ 1,393 $ 87 6 %

Distribution fees 191 180 11 6

Net investment income 23 19 4 21

Other revenues 9 15 (6) (40)

Total revenues 1,703 1,607 96 6

Banking and deposit interest expense — — — —

Total net revenues 1,703 1,607 96 6

Distribution expenses 486 463 23 5

Amortization of deferred acquisition costs 3 3 — —

Interest and debt expense 3 3 — —

General and administrative expense 787 811 (24) (3)

Total expenses 1,279 1,280 (1) —

Adjusted operating earnings $ 424 $ 327 $ 97 30 %

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $97 million, or 30%, for the six months ended June 30, 2024 compared to the prior year period primarily due to equity market appreciation and the positive impact from expense management actions, partially offset by the cumulative impact from net outflows.

Management and financial advice fees increased $87 million, or 6%, for the six months ended June 30, 2024 compared to the prior year period primarily due to equity market appreciation, partially offset by the cumulative impact from net outflows.

Distribution fees increased $11 million, or 6%, for the six months ended June 30, 2024 compared to the prior year period primarily due to market appreciation.

Distribution expenses increased $23 million, or 5%, for the six months ended June 30, 2024 compared to the prior year period primarily due to market appreciation, partially offset by the cumulative impact from net outflows.

General and administrative expense decreased $24 million, or 3%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting the ongoing benefits from our initiatives to enhance operational efficiency and effectiveness.

AMERIPRISE FINANCIAL, INC.

Retirement & Protection Solutions

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

Six Months Ended June 30,

(in millions)

Management and financial advice fees $ 378 $ 368 $ 10 3 %

Distribution fees 208 197 11 6

Net investment income 509 398 111 28

Premiums, policy and contract charges 741 714 27 4

Other revenues 4 5 (1) (20)

Total revenues 1,840 1,682 158 9

Banking and deposit interest expense — — — —

Total net revenues 1,840 1,682 158 9

Distribution expenses 253 230 23 10

Interest credited to fixed accounts 184 182 2 1

Benefits, claims, losses and settlement expenses 450 350 100 29

Remeasurement (gains) losses of future policy benefit reserves (7) (7) — —

Change in fair value of market risk benefits 271 238 33 14

Amortization of deferred acquisition costs 114 115 (1) (1)

2 unchanged sentences

Total expenses 1,445 1,299 146 11

Adjusted operating earnings $ 395 $ 383 $ 12 3 %

Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $12 million, or 3%, for the six months ended June 30, 2024 compared to the prior year period, primarily reflecting higher interest rates and market appreciation, partially offset by higher expenses associated with increased sales.

Management and financial advice fees increased $10 million, or 3%, for the six months ended June 30, 2024 compared to the prior year period primarily due to market appreciation, partially offset by the impact from variable annuity net outflows.

Distribution fees increased $11 million, or 6%, for the six months ended June 30, 2024 compared to the prior year period primarily due to market appreciation.

Net investment income, which excludes net realized investment gains or losses, increased $111 million, or 28%, for the six months ended June 30, 2024 compared to the prior year period primarily due to higher interest rates and increased SVA balances.

Premiums, policy and contract charges increased $27 million, or 4%, for the six months ended June 30, 2024 compared to the prior year period primarily due to higher sales of life contingent payout annuities.

Distribution expenses increased $23 million, or 10%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting market appreciation and higher sales of SVAs.

Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, increased $100 million, or 29%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting the impact of higher sales of life contingent payout annuities and increased volume in SVAs.

Change in fair value of market risk benefits, which exclude the market impact on variable annuity guaranteed benefits (net of hedges), increased $33 million, or 14%, for the six months ended June 30, 2024 compared to the prior year period reflecting market appreciation on contractual fees.

AMERIPRISE FINANCIAL, INC.

Corporate & Other

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

Six Months Ended June 30,

(in millions)

Net investment income $ 105 $ 127 $ (22) (17) %

Premiums, policy and contract charges 46 47 (1) (2)

Other revenues 96 107 (11) (10)

Total revenues 247 281 (34) (12)

Banking and deposit interest expense 15 7 8 NM

Total net revenues 232 274 (42) (15)

Distribution expenses (4) (4) — —

Interest credited to fixed accounts 109 118 (9) (8)

Benefits, claims, losses and settlement expenses 110 116 (6) (5)

Remeasurement (gains) losses of future policy benefit reserves (5) 2 (7) NM

Amortization of deferred acquisition costs 5 5 — —

Interest and debt expense 51 47 4 9

General and administrative expense 174 124 50 40

Total expenses 440 408 32 8

Adjusted operating loss $ (208) $ (134) $ (74) (55) %

NM Not Meaningful - variance equal to or greater than 100%.

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

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

Our Corporate & Other segment pretax adjusted operating loss increased $15 million, or 20%, for the three months ended March 31, 2024 compared to the prior year period.

LTC insurance had pretax adjusted operating earnings of $16 million for the three months ended March 31, 2024 compared to pretax adjusted operating earnings of $8 million for the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.

The FA business had a pretax adjusted operating loss of $6 million for the three months ended March 31, 2024 compared to a pretax adjusted operating loss of $9 million for the prior year period.

Fixed deferred annuity account balances declined 11% to $6.1 billion as of March 31, 2024 compared to the prior year period as policies continue to lapse and we previously discontinued new sales of fixed deferred annuities.

Our Corporate & Other segment pretax adjusted operating loss increased $74 million, or 55%, for the six months ended June 30, 2024 compared to the prior year period.

LTC insurance had pretax adjusted operating earnings of $28 million for the six months ended June 30, 2024 compared to pretax adjusted operating earnings of $9 million for the prior year period primarily reflecting improved claims experience and the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.

The FA business had a pretax adjusted operating loss of $14 million for the six months ended June 30, 2024 compared to a pretax adjusted operating loss of $14 million for the prior year period.

Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, integration and restructuring charges, and the impact of consolidating CIEs, decreased $22 million, or 17%, for the six months ended June 30, 2024 compared to the prior year period primarily due to a $12 million benefit in our affordable housing partnerships in the prior year period, as well as adjustments and updates made in the fourth quarter of 2023 to the allocation of investment income across business segments that reflected increased market volatility and the interest rate environment.

Other revenues decreased $11 million, or 10%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting the yield on deposit receivables arising from reinsurance transactions.

General and administrative expense, which excludes integration and restructuring charges, increased $50 million, or 40%, for the six months ended June 30, 2024 compared to the prior year period primarily reflecting $28 million of higher severance expenses associated with our initiatives to enhance operational efficiency and effectiveness as well as a lease write-down.

AMERIPRISE FINANCIAL, INC.

Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, integration and restructuring charges, and the impact of consolidating CIEs, increased $7 million, or 14%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting higher interest rates on cash positions.

Other revenues decreased $7 million, or 13%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the yield on deposit receivables arising from reinsurance transactions.

Interest and debt expense increased $7 million, or 39%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the issuance of $750 million and $600 million of unsecured senior notes in March 2023 and November 2023, respectively, partially offset by the maturity of $750 million of unsecured senior notes in October 2023.

General and administrative expense, which excludes integration and restructuring charges, increased $15 million, or 23%, for the three months ended March 31, 2024 compared to the prior year period primarily reflecting the unfavorable mark-to-market impact on share-based compensation expense due to share price appreciation, increased severance expense related to our expense management initiatives and a lease write-down.

Fair Value Measurements

13 unchanged sentences

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

Treasury curve as of March 31, 2024.

Treasury curve as of June 30, 2024.

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

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

Treasury curve, the reduction to future total equity would be approximately $605 million, net of the reinsurance accrual and income taxes (calculated at the statutory tax rate of 21%), based on March 31, 2024 credit spreads.

Treasury curve, the reduction to future total equity would be approximately $582 million, net of the reinsurance accrual and income taxes (calculated at the statutory tax rate of 21%), based on June 30, 2024 credit spreads.

Liquidity and Capital Resources

As of March 31, 2024 and December 31, 2023, we had Available Capital for Capital Adequacy of $5.1 billion and $5.4 billion, respectively.

As of June 30, 2024 and December 31, 2023, we had Available Capital for Capital Adequacy of $5.2 billion and $5.4 billion, respectively.

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

We maintained substantial liquidity during the three months ended March 31, 2024.

As of March 31, 2024 and December 31, 2023, we had $7.1 billion and $7.5 billion, respectively, in cash and cash equivalents excluding CIEs and other restricted cash on a consolidated basis.

As of March 31, 2024 and December 31, 2023, the parent company had $727 million and $544 million, respectively, in cash, cash equivalents, and unencumbered liquid securities.

We maintained substantial liquidity during the six months ended June 30, 2024.

As of both June 30, 2024 and December 31, 2023, we had $7.5 billion in cash and cash equivalents excluding CIEs and other restricted cash on a consolidated basis.

As of June 30, 2024 and December 31, 2023, the parent company had $1.1 billion and $544 million, respectively, in cash, cash equivalents, and unencumbered liquid securities.

Liquid securities predominantly include U.S.

1 unchanged sentence

Additional sources of liquidity at the parent company include a line of credit with an affiliate up to $714 million and an unsecured revolving committed credit facility for up to $1.0 billion that expires in June 2026.

Management’s estimate of liquidity available to the parent company in a volatile and uncertain economic environment as of March 31, 2024 was $1.9 billion which includes cash, cash equivalents, unencumbered liquid securities, the line of credit with an affiliate and a portion of the committed credit facility.

Management’s estimate of liquidity available to the parent company in a volatile and uncertain economic environment as of June 30, 2024 was $2.3 billion which includes cash, cash equivalents, unencumbered liquid securities, the line of credit with an affiliate and a portion of the committed credit facility.

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

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

At March 31, 2024, we had no outstanding borrowings under this credit facility and had $1 million of letters of credit issued against the facility.

Our credit facility

AMERIPRISE FINANCIAL, INC.

contains various administrative, reporting, legal and financial covenants.

We remained in compliance with all such covenants at March 31, 2024.

At June 30, 2024, we had no outstanding borrowings under this credit facility and had $1 million of letters of credit issued against the facility.

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

We remained in compliance with all such covenants at June 30, 2024.

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

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

As of both March 31, 2024 and December 31, 2023, we had $8.6 billion of estimated borrowing capacity under the FHLB facilities, of which $201 million was outstanding as of both March 31, 2024 and December 31, 2023, and is collateralized with commercial mortgage backed securities.

As of June 30, 2024 and December 31, 2023, we had $8.5 billion and $8.6 billion, respectively, of estimated borrowing capacity under the FHLB facilities, of which $201 million was outstanding as of both June 30, 2024 and December 31, 2023, and is collateralized with commercial mortgage backed securities.

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

As of March 31, 2024 and December 31, 2023, we estimated $12.4 billion and $12.3 billion, respectively, of borrowing capacity from the Federal Reserve in addition to the FHLB capacity and there were no outstanding obligations.

As of both June 30, 2024 and December 31, 2023, we estimated $12.3 billion of borrowing capacity from the Federal Reserve in addition to the FHLB capacity and there were no outstanding obligations.

There have been no material changes to our contractual obligations disclosed in our 2023 10-K.

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

AMERIPRISE FINANCIAL, INC.

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

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The Financial Industry Regulatory Authority (“FINRA”) may impose certain restrictions, such as restricting withdrawals of equity capital, if a member firm were to fall below a certain threshold or fail to meet minimum net capital requirements.

AMERIPRISE FINANCIAL, INC.

Ameriprise Bank is subject to regulation by the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation in its role as insurer of its deposits.

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are calculated and reported as a single consolidated group under TAM UK International Holdings Ltd.

Required capital for these entities is predominantly based on the requirements specified by its regulator, the FCA, under its Capital Adequacy Requirements for investment firms.

Required capital for these entities is predominantly based on the requirements specified by its regulator, the Financial Conduct Authority (“FCA”), under its Capital Adequacy Requirements for investment firms.

AMERIPRISE FINANCIAL, INC.

Actual capital and regulatory capital requirements for our wholly owned subsidiaries subject to regulatory capital requirements were as follows:

Actual Capital Regulatory Capital Requirements

March 31, 2024

June 30, 2024

December 31, 2023

March 31, 2024

June 30, 2024

December 31, 2023

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

(2) Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of March 31, 2024 and December 31, 2023.

(2) Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of June 30, 2024 and December 31, 2023.

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

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

During the three months ended March 31, 2024, the parent holding company received cash dividends or a return of capital from its subsidiaries of $832 million (including $200 million from RiverSource Life and $320 million from AMPF Holding, LLC) and contributed cash to its subsidiaries of $60 million.

During the three months ended March 31, 2023, the parent holding company

AMERIPRISE FINANCIAL, INC.

received cash dividends or a return of capital from its subsidiaries of $605 million (including $200 million from RiverSource Life) and contributed cash to its subsidiaries of $138 million.

During the six months ended June 30, 2024, the parent holding company received cash dividends or a return of capital from its subsidiaries of $2.2 billion (including$400 million from RiverSource Life and $750 million from AMPF Holding, LLC) and contributed cash to its subsidiaries of $75 million.

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

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

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

AMERIPRISE FINANCIAL, INC.

Dividends Paid to Shareholders and Share Repurchases

We paid regular quarterly dividends to our shareholders totaling $143 million and $138 million for the three months ended March 31, 2024 and 2023, respectively.

On April 22, 2024, we announced a quarterly dividend of $1.48 per common share.

The dividend will be paid on May 17, 2024 to our shareholders of record at the close of business on May 6, 2024.

We paid regular quarterly dividends to our shareholders totaling $294 million and $284 million for the six months ended June 30, 2024 and 2023, respectively.

On July 24, 2024, we announced a quarterly dividend of $1.48 per common share.

The dividend will be paid on August 16, 2024 to our shareholders of record at the close of business on August 5, 2024.

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

As of March 31, 2024, we had $2.6 billion remaining under this share repurchase authorization.

As of June 30, 2024, we had $2.1 billion remaining under this share repurchase authorization.

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

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

During the three months ended March 31, 2024, we repurchased a total of 1.2 million shares of our common stock at an average price of $409.96 per share.

During the six months ended June 30, 2024, we repurchased a total of 2.5 million shares of our common stock at an average price of $421.15 per share.

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

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Operating Activities

Net cash provided by operating activities increased $388 million to $1.4 billion for the three months ended March 31, 2024 compared to $1.1 billion for the prior year period primarily reflecting higher investment income from rising interest rates on the investment portfolio yield and net cash inflows in brokerage deposits.

Net cash provided by operating activities increased $1.5 billion to $3.2 billion for the six months ended June 30, 2024 compared to $1.6 billion for the prior year period primarily reflecting higher investment income from rising interest rates on the investment portfolio yield, lower income taxes paid and lower net cash outflows in brokerage deposits.

Investing Activities

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

Net cash used in investing activities decreased $2.5 billion to $569 million for the three months ended March 31, 2024 compared to $3.1 billion for the prior year period primarily reflecting a $1.1 billion decrease in purchases of Available-for-Sale securities and a $1.8 billion increase in proceeds from maturities, sinking fund payments and calls of Available-for-Sale securities.

Net cash used in investing activities decreased $5.6 billion to $403 million for the six months ended June 30, 2024 compared to $6.0 billion for the prior year period primarily reflecting a $3.5 billion decrease in purchases of Available-for-Sale securities and a $2.7 billion increase in proceeds from maturities, sinking fund payments and calls of Available-for-Sale securities.

Financing Activities

Net cash used in financing activities was $1.4 billion for the three months ended March 31, 2024 compared to net cash provided by financing activities of $3.2 billion for the prior year period.

The decrease in net cash provided by financing activities primarily reflects a $2.0 billion decrease in net cash flows from investment certificates and a $1.9 billion decrease in the change in banking deposits, net.

AMERIPRISE FINANCIAL, INC.

Net cash used in financing activities was $2.5 billion for the six months ended June 30, 2024 compared to net cash provided by financing activities of $4.4 billion for the prior year period.

The decrease in net cash provided by financing activities primarily reflects a $3.7 billion decrease in net cash flows from investment certificates and a $2.7 billion decrease in the change in banking deposits, net due to the strong growth in the prior year period.

Forward-Looking Statements

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Examples of such forward-looking statements include:

• statements of the Company’s plans, intentions, positioning, expectations, objectives or goals, including those relating to asset flows, mass affluent and affluent client acquisition strategy, client retention and growth of our client base, financial advisor productivity, retention, recruiting and enrollments, the introduction, cessation, terms or pricing of new or existing products and services, acquisition integration, benefits and claims expenses, general and administrative costs, consolidated tax rate, return of capital to shareholders, debt repayment and excess capital position and financial flexibility to capture additional growth opportunities;

• statements of the Company’s plans, intentions, positioning, expectations, objectives or goals, including those relating to asset flows, mass affluent and affluent client acquisition strategy, client retention and growth of our client base, financial advisor productivity, retention, recruiting and enrollments, the introduction, cessation, terms or pricing of new or existing products and services, benefits and claims expenses, general and administrative costs, consolidated tax rate, return of capital to shareholders, debt repayment and excess capital position and financial flexibility to capture additional growth opportunities;

• statements about the expected trend in the shift to lower-risk products;

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Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from such statements.

AMERIPRISE FINANCIAL, INC.

Such factors include, but are not limited to:

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• changes in and the adoption of new accounting standards.

AMERIPRISE FINANCIAL, INC.

Management cautions the reader that the foregoing list of factors is not exhaustive.

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The information found on the website is not incorporated by reference into this report or in any other report or document the Company furnishes or files with the SEC.

AMERIPRISE FINANCIAL, INC.

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis