What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-11-01 compared with 2024-08-06 · 262 added, 209 removed, 701 unchanged (40% of the section changed)

5 unchanged sentences

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 are a long-standing leader in financial planning and advice with $1.5 trillion in assets under management and administration as of September 30, 2024.

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

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“Quantitative and Qualitative Disclosures About Market Risk.”

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

These annual assumption updates are collectively referred to as unlocking throughout this document.

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

We consolidate certain variable interest entities for which we provide asset management services.

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integration and restructuring charges;

income (loss) from discontinued operations;

and the impact of consolidating CIEs, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis.

income (loss) from

AMERIPRISE FINANCIAL, INC.

discontinued operations;

and the impact of consolidating CIEs, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis.

The market impact on non-traditional long-duration products includes changes in market risk benefits and embedded derivative values caused by changes in financial market conditions, net of changes in economic hedge values and unhedged items including the difference between assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and certain policyholder contract elections.

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Per Diluted Share

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions, except per share amounts)

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(322) (137) (3.11) (1.27)

Mean reversion related impacts (1)

Integration/restructuring charges (1)

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

Twelve Months Ended June 30,

Twelve Months Ended September 30,

(in millions)

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

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

(in millions)

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The following table presents relevant market indices:

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Daily average 5,546 4,456 24% 5,266 4,222 25%

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The following table presents detail regarding our AUM and AUA:

September 30,

(in billions)

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Total AUM and AUA $ 1,506.1 $ 1,232.8 $ 273.3 22 %

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.

Total AUM increased $201.5 billion, or 20%, to $1.2 trillion as of September 30, 2024 compared to $990.4 billion as of September 30, 2023 due to an $124.5 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $84.9 billion increase in Asset Management AUM primarily driven by equity market appreciation, partially offset by net outflows.

Total AUA increased $71.8 billion, or 30%, to $314.2 billion as of September 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 June 30, 2024 and 2023

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

The following table presents our consolidated results of operations:

Three Months Ended June 30,

Three Months Ended September 30,

(in millions)

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Interest credited to fixed accounts 118 139 (21) (15)

Benefits, claims, losses and settlement expenses 331 327 4 1

Benefits, claims, losses and settlement expenses 430 120 310 NM

Remeasurement (gains) losses of future policy benefit reserves (22) (12) (10) (83)

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

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

Pretax income decreased $472 million, or 42%, for the three months ended September 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.

• 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 $402 million for the three months ended September 30, 2024 compared to a benefit of $211 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 the trend in rising investment portfolio yields, along with higher balances in Ameriprise Bank, FSB (“Ameriprise Bank”) customer deposits 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 three months ended June 30, 2024 compared to the prior year period.

Our average WEI, which is a proxy for equity movements on AUM, increased 22% in the three months ended September 30, 2024 compared to the prior year period.

The average S&P 500 index was 24% higher in the quarter compared to the prior year period.

• 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 $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.

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:

The following table presents the total pretax impacts on our revenues and expenses attributable to our annual assumption updates, referred to as unlocking, for the three months ended September 30:

Pretax Increase (Decrease) 2024

(in millions)

Premiums, policy and contract charges $ (4) $ 1

Total revenues (4) 1

Interest credited to fixed accounts

Benefits, claims, losses and settlement expenses (4) (17)

Remeasurement (gains) losses of future policy benefit reserves:

LTC unlocking 4 (5)

Unlocking impact, excluding LTC (24) (6)

Total remeasurement (gains) losses of future policy benefit reserves (20) (11)

Change in fair value of market risk benefits 107 128

Total expenses

Pretax income (loss) (1)

$ (77) $ (99)

(1) Includes a $17 million net benefit related to model changes associated with the market impact on indexed universal life and SVA embedded derivatives for the three months ended September 30, 2024, which is excluded from adjusted operating earnings.

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

The primary driver of the unlocking impact was lowered surrender assumptions on variable annuities with living benefits resulting in an expense for the three months ended September 30, 2024, partially offset by the updated claims incident rates on disability insurance.

The primary driver of the unlocking impact was lowered surrender assumptions on variable annuities with living benefits resulting in an expense for the three months ended September 30, 2023.

Management and financial advice fees increased $286 million, or 13%, for the three months ended September 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 $50 million, or 11%, for the three months ended September 30, 2024 compared to the prior year period primarily due to higher transactional activity and market appreciation, partially offset by $26 million of lower fees on off-balance sheet brokerage cash.

Net investment income increased $125 million, or 15%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting the following items:

• The favorable impact of growth in Ameriprise Bank customer deposits and SVA products.

• The favorable impact of the trend in rising investment portfolio yields.

Banking and deposit interest expense increased $12 million, or 8%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting higher average crediting rates on certificates and Ameriprise Bank cash deposits.

Distribution expenses increased $242 million, or 19%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting higher market appreciation and higher transactional activity.

Interest credited to fixed accounts decreased $21 million, or 15%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting the following items:

• A $20 million decrease in expense from other market impacts on indexed universal life (“IUL”) benefits, net of hedges, which was a benefit of $35 million for the three months ended September 30, 2024 compared to a benefit of $15 million for the prior year period.

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

• A $3 million increase in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits.

The unfavorable impact of the nonperformance credit spread was $5 million for the three months ended September 30, 2024 compared to an unfavorable impact of $2 million for the prior year period.

Benefits, claims, losses and settlement expenses increased $310 million, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting a $221 million increase in expense from market impacts on SVA embedded derivative, net of

AMERIPRISE FINANCIAL, INC.

hedges in place to offset those risks.

This increase was primarily the result of an unfavorable $683 million change in the market impact on SVA embedded derivative and a favorable $464 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 an expense for the three months ended September 30, 2024 compared to a benefit in the prior year period.

The increase in expense also reflects the impact of increased volume in SVAs and the impact of higher sales of life contingent payout annuities.

Change in fair value of market risk benefits increased $398 million, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting the following items:

• A $401 million increase in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks.

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

• Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower 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.

• 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 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.

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

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

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

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

General and administrative expense increased $25 million, or 3%, for the three months ended September 30, 2024 compared to the prior year period primarily due to $17 million of higher severance expense, expenses to accelerate our transition to cloud-based technology, higher compensation accruals related to strong performance and the mark-to-market impacts on share-based compensation, partially offset by our continued focus on operational efficiency and effectiveness and a $20 million accrual for a regulatory matter relating to electronic communication recordkeeping requirements in the prior year period.

Our effective tax rate was 20.7% for the three months ended September 30, 2024 compared to 21.8% for the prior year period.

The decrease in the effective tax rate for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was primarily due to lower pretax income in the current period compared to the prior period and the related impact on tax preferred items, a decrease in unrecognized tax benefits, and a decrease in foreign taxes, partially offset by an increase in state income taxes, net of federal benefit.

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

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

Results of Operations by Segment for the Three Months Ended September 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.

We believe the presentation of segment adjusted 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.

AMERIPRISE FINANCIAL, INC.

The following table presents summary financial information by segment:

Three Months Ended June 30,

Three Months Ended September 30,

(in millions)

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Adjusted operating loss $ (143) $ (72)

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

Segment Pretax Operating Increase (Decrease) 2024

Retirement & Protection Solutions Corporate Retirement & Protection Solutions Corporate

(in millions)

Premiums, policy and contract charges $ (5) $ — $ 1 $ —

Total revenues (5) — 1 —

Benefits, claims, losses and settlement expenses

Remeasurement (gains) losses of future policy benefit reserves:

LTC unlocking — 4 — (5)

Unlocking impact, excluding LTC (24) — (6) —

Total remeasurement (gains) losses of future policy benefit reserves (24) 4 (6) (5)

Change in fair value of market risk benefits 105 — 128 —

Total expenses

Pretax income (loss) $ (90) $ (4) $ (104) $ 5

AMERIPRISE FINANCIAL, INC.

Advice & Wealth Management

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

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

(in billions)

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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 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.

(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 September 30, 2024 and 2023, which is reflective of our billing cycle.

Ending wrap account assets increased $34.1 billion, or 6%, to $569.1 billion during the three months ended September 30, 2024 due to net inflows of $8.0 billion and market appreciation of $26.1 billion.

Average advisory wrap account assets increased $86.3 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 June 30,

Three Months Ended September 30,

(in millions)

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Adjusted operating earnings $ 826 $ 729 $ 97 13 %

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.

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $97 million, or 13%, for the three months ended September 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 30.1% for the three months ended September 30, 2024 compared to 30.3% for the prior year period.

Ameriprise Bank is continuing its deposit growth trend, with bank deposit balances increasing $0.8 billion from the prior year period to $21.7 billion.

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.

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.

The daily average interest-bearing deposit balance increased to $21.5 billion for the three months ended September 30, 2024 compared to $20.9 billion for the prior year period with the average interest rate paid on deposits increasing to 0.46% for the three months ended September 30, 2024 from 0.40% for the prior year period.

Profitability at the bank increased compared to the prior year period primarily reflecting growth in deposits.

Ameriprise Certificate Company (“ACC”) client deposits decreased $0.6 billion from the prior year period to $12.0 billion.

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

AMERIPRISE FINANCIAL, INC.

Management and financial advice fees increased $235 million, or 17%, for the three months ended September 30, 2024 compared to the prior year period primarily due to growth in average wrap account assets.

Average advisory wrap account assets increased $86.3 billion, or 19%, compared to the prior year period primarily reflecting market appreciation and net inflows.

Distribution fees increased $62 million, or 11%, for the three months ended September 30, 2024 compared to the prior year period reflecting higher transactional activity and market appreciation, partially offset by $26 million of lower fees on off-balance sheet brokerage cash due to lower off-balance sheet brokerage cash balances and a lower average fee yield.

Net investment income, which excludes net realized investment gains or losses, increased $37 million, or 7%, for the three months ended September 30, 2024 compared to the prior year period primarily due to higher average invested assets due to growth in bank cash deposits and the favorable impact of increasing investment yields on the investment portfolios supporting the bank cash deposits and certificate products.

Distribution expenses increased $235 million, or 19%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting market appreciation and higher transactional activity.

Asset Management

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

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

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

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The following table presents global managed assets by type:

As of June 30,

As of September 30,

Change Three Months Ended

September 30,

(in billions)

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The following table presents the changes in global managed assets:

Three Months Ended June 30,

Three Months Ended September 30,

(in billions)

13 unchanged sentences

Beginning assets 294.4 289.2

(16.3) (12.1)

Net flows (0.9) (0.3)

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

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.

Total segment AUM increased $30.2 billion, or 5%, during the three months ended September 30, 2024 primarily due to market appreciation and a favorable foreign exchange impact, partially offset by net outflows.

Model delivery assets under advisement net inflows were $1.2 billion for the three months ended September 30, 2024 compared to $0.2 billion for the prior year period.

AMERIPRISE FINANCIAL, INC.

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

Three Months Ended June 30,

Three Months Ended September 30,

(in millions)

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Distribution expenses 250 234 16 7

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

Amortization of deferred acquisition costs 2 1 1 NM

Interest and debt expense 2 2 — —

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Adjusted operating earnings $ 245 $ 199 $ 46 23 %

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.

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 $46 million, or 23%, for the three months ended September 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 $43 million, or 6%, for the three months ended September 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 September 30, 2024 compared to the prior year period primarily reflecting market appreciation, partially offset by the cumulative impact from net outflows.

Distribution expenses increased $16 million, or 7%, for the three months ended September 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 $7 million, or 2%, for the three months ended September 30, 2024 compared to the prior year period reflecting the initial 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 June 30,

Three Months Ended September 30,

(in millions)

10 unchanged sentences

Benefits, claims, losses and settlement expenses 253 168 85 51

Remeasurement (gains) losses of future policy benefit reserves (5) (4) (1) (25)

Remeasurement (gains) losses of future policy benefit reserves (25) (10) (15) NM

Change in fair value of market risk benefits 257 259 (2) (1)

4 unchanged sentences

Adjusted operating earnings $ 118 $ 100 $ 18 18 %

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 52% as of June 30, 2024 compared to 56% a year ago reflecting our actions to optimize our business mix.

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

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 $18 million, or 18%, for the three months ended September 30, 2024 compared to prior year period primarily reflecting higher investment portfolio yields and market appreciation, partially offset by higher expenses associated with increased sales.

Variable annuity account balances increased 17% to $87.7 billion as of September 30, 2024 compared to the prior year period due to market appreciation, partially offset by net outflows of $3.5 billion.

Variable annuity sales increased 13% compared to the prior year period primarily reflecting an increase in sales of SVAs.

Account values with living benefit riders declined to 51% as of September 30, 2024 compared to 55% 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.

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.

Net investment income, which excludes net realized investment gains or losses, increased $66 million, or 31%, for the three months ended September 30, 2024 compared to the prior year period primarily due to higher investment portfolio yields from investment portfolio repositioning and increased SVA balances.

Distribution expenses increased $14 million, or 12%, for the three months ended September 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 $85 million, or 51%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting increased volume in SVAs.

AMERIPRISE FINANCIAL, INC.

1 unchanged sentence

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

Three Months Ended June 30,

Three Months Ended September 30,

(in millions)

Distribution fees $ — $ 1 $ (1) NM

Net investment income 53 71 (18) (25) %

2 unchanged sentences

Total revenues 122 149 (27) (18)

Banking and deposit interest expense 7 3 4 NM

Banking and deposit interest expense 7 6 1 17

Total net revenues 115 143 (28) (20)

3 unchanged sentences

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

Amortization of deferred acquisition costs 3 2 1 50

Amortization of deferred acquisition costs — 4 (4) NM

Interest and debt expense 32 28 4 14

5 unchanged sentences

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.

Our Corporate & Other segment pretax adjusted operating loss increased $71 million for the three months ended September 30, 2024 compared to the prior year period.

LTC insurance had a pretax adjusted operating earnings of $9 million for the three months ended September 30, 2024 compared to pretax adjusted operating earnings of $10 million for the prior year period primarily reflecting an unfavorable unlocking impact in the current period, along with a favorable impact in the prior year period, offset by 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 $7 million for the three months ended September 30, 2024 compared to a pretax adjusted operating loss of $8 million for the prior year period.

Fixed deferred annuity account balances declined 11% to $5.8 billion as of September 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 $18 million, or 25%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting 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.

AMERIPRISE FINANCIAL, INC.

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

General and administrative expense increased $45 million, or 64%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting $17 million of higher severance expenses associated with our initiatives to enhance operational efficiency and effectiveness, as well as $22 million of expenses to accelerate our transition to cloud-based technology, higher compensation accruals related to strong performance and the mark-to-market impacts on share-based compensation.

Consolidated Results of Operations for the Nine Months Ended September 30, 2024 and 2023

The following table presents our consolidated results of operations:

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions)

21 unchanged sentences

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.

Pretax income increased $175 million, or 6%, for the nine months ended September 30, 2024 compared to 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.

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

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

• A favorable impact from the trend in rising investment portfolio yields, along with higher average balances in Ameriprise Bank customer deposits, certificate and SVA products.

• The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was an expense of $322 million for the nine months ended September 30, 2024 compared to an expense of $137 million for the prior year period.

• 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.

See our Consolidated Results of Operations for the three months ended September 30, 2024 and 2023 for a table and discussion of total pretax impacts on our revenues and expenses attributable to unlocking.

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.

Management and financial advice fees increased $805 million, or 12%, for the nine months ended September 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 $62 million, or 4%, for the nine months ended September 30, 2024 compared to the prior year period due to market appreciation and strong transactional activity, partially offset by $146 million of lower fees on off-balance sheet brokerage cash.

Net investment income increased $438 million, or 19%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting:

• The favorable impact of growth in Ameriprise Bank customer deposits and SVA products, along with higher average certificate balances.

• The favorable impact of the trend in rising investment portfolio yields.

Premiums, policy and contract charges increased $45 million, or 4%, for the nine months ended September 30, 2024 compared to the prior year period due to higher sales of life contingent payout annuities.

Banking and deposit interest expense increased $129 million, or 34%, for the nine months ended September 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 $637 million, or 17%, for the nine months ended September 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 $29 million, or 6%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting the following items:

• A $39 million decrease in expense from other market impacts on IUL benefits, net of hedges, which was a benefit of $23 million for the nine months ended September 30, 2024 compared to an expense of $16 million for the prior year period.

The decrease in expense was primarily due to a decrease in the IUL embedded derivative in the current period, which reflected model changes and more discounting due to higher Treasury rates, partially offset by higher option costs due to a higher option budget.

• A $23 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 unfavorable impact of the nonperformance credit spread was $17 million for the nine months ended September 30, 2024 compared to a favorable impact of $6 million for the prior year period.

Benefits, claims, losses and settlement expenses increased $308 million, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting a $130 million increase in expense from market impacts on SVA embedded derivative, net of hedges in place to offset those risks.

This increase was primarily the result of a favorable $804 million change in the market impact on derivatives hedging the SVA embedded derivative and an unfavorable $916 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 higher expense for the nine months ended September 30, 2024 compared to the prior year period.

This increase also reflects the impact of higher sales of life contingent payout annuities and increased volume in SVAs.

Change in fair value of market risk benefits increased $100 million, or 18%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting the following items:

• A $69 million increase in expense from market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks.

This increase was the result of an unfavorable $437 million change in the market impact on variable annuity guaranteed benefits reserves and a favorable $392 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.

• 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 nine months ended September 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 an expense for the nine months ended September 30, 2024 compared to a benefit 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 nine months ended September 30, 2024 compared to the prior year period.

AMERIPRISE FINANCIAL, INC.

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

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

General and administrative expense increased $38 million, or 1%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting $44 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 a $20 million accrual for a regulatory matter relating to electronic communication recordkeeping requirements and integration related expenses in the prior year period.

Our effective tax rate was 20.0 % for the nine months ended September 30, 2024 compared to 20.5 % 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 Nine Months Ended September 30, 2024 and 2023

The following table presents summary financial information by segment:

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions)

15 unchanged sentences

Adjusted operating loss $ (351) $ (206)

See our Results of Operations by Segment for the three months ended September 30, 2024 and 2023 for a table of segment pretax adjusted operating impacts on our revenues and expenses attributable to unlocking.

Advice & Wealth Management

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

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

(in billions)

9 unchanged sentences

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

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

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

AMERIPRISE FINANCIAL, INC.

Ending wrap account assets increased $80.9 billion, or 17%, to $569.1 billion during the nine months ended September 30, 2024 due to market appreciation and other of $58.9 billion and net inflows of $22.0 billion.

Average advisory wrap account assets increased $79.5 billion, or 18%, compared to the prior year period reflecting market appreciation and net inflows.

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

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions)

11 unchanged sentences

Adjusted operating earnings $ 2,410 $ 2,153 $ 257 12 %

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.

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $257 million, or 12%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting market appreciation, higher average short-term interest rates and higher average bank cash deposits and certificate balances along with the cumulative impact of client net flows.

Pretax adjusted operating margin was 30.3% for the nine months ended September 30, 2024 compared to 30.7% for the prior year period.

Ameriprise Bank is continuing its deposit growth trend, with bank deposit balances increasing $0.8 billion from the prior year period to $21.7 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.

The daily average interest-bearing deposit balance increased to $21.4 billion for the nine months ended September 30, 2024 compared to $20.1 billion for the prior year period with the average interest rate paid on deposits increasing to 0.44% for the nine months ended September 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 growth in deposits.

ACC client deposits decreased $0.6 billion from the prior year period to $12.0 billion.

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

Management and financial advice fees increased $662 million, or 16%, for the nine months ended September 30, 2024 compared to the prior year period primarily due to higher average wrap account assets.

Average advisory wrap account assets increased $79.5 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.

Distribution fees increased $106 million, or 6%, for the nine months ended September 30, 2024 compared to the prior year period reflecting strong transactional activity, partially offset by $146 million of lower fees on off-balance sheet brokerage cash due to lower off-balance sheet brokerage cash balances and a lower average fee yield.

Net investment income, which excludes net realized investment gains or losses, increased $265 million, or 19%, for the nine months ended September 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 increasing investment yields on the investment portfolios supporting the bank cash deposits and certificate products.

Distribution expenses increased $638 million, or 18%, for the nine months ended September 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.

AMERIPRISE FINANCIAL, INC.

General and administrative expense increased $27 million, or 2%, for the nine months ended September 30, 2024 compared to the prior year period primarily due to higher volume related expenses and investments for business growth, partially offset by a $20 million accrual for a regulatory matter relating to electronic communication recordkeeping requirements in the prior year period.

Asset Management

The following table presents global managed assets by type:

As of June 30,

Change Six Months Ended

As of September 30,

Change Nine Months Ended

September 30,

(in billions)

7 unchanged sentences

The following table presents the changes in global managed assets:

Six Months Ended June 30,

Nine Months Ended September 30,

(in billions)

27 unchanged sentences

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.

Total segment AUM increased $35.2 billion, or 6%, during the nine months ended September 30, 2024 primarily due to equity market appreciation, partially offset by net outflows.

Net outflows were $21.3 billion for the nine months ended September 30, 2024 and included an $8.0 billion asset transfer related to a legacy insurance partner.

Model delivery assets under advisement net inflows were $2.4 billion for the nine months ended September 30, 2024 compared to $0.5 billion for the prior year period.

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

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions)

12 unchanged sentences

Adjusted operating earnings $ 669 $ 526 $ 143 27 %

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.

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $143 million, or 27%, for the nine months ended September 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 $130 million, or 6%, for the nine months ended September 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 $17 million, or 6%, for the nine months ended September 30, 2024 compared to the prior year period primarily due to market appreciation.

Distribution expenses increased $39 million, or 6%, for the nine months ended September 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 $31 million, or 3%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting the initial 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:

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions)

17 unchanged sentences

Adjusted operating earnings $ 513 $ 483 $ 30 6 %

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.

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 $30 million, or 6%, for the nine months ended September 30, 2024 compared to the prior year period, primarily reflecting higher investment portfolio yields and market appreciation, partially offset by higher expenses associated with increased sales.

Management and financial advice fees increased $20 million, or 4%, for the nine months ended September 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 $16 million, or 5%, for the nine months ended September 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 $177 million, or 29%, for the nine months ended September 30, 2024 compared to the prior year period primarily due to higher investment portfolio yields from investment portfolio repositioning and increased SVA balances.

Premiums, policy and contract charges increased $43 million, or 4%, for the nine months ended September 30, 2024 compared to the prior year period primarily due to higher sales of life contingent payout annuities.

Distribution expenses increased $37 million, or 11%, for the nine months ended September 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 $185 million, or 36%, for the nine months ended September 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.

AMERIPRISE FINANCIAL, INC.

Change in fair value of market risk benefits, which exclude the market impact on variable annuity guaranteed benefits (net of hedges), increased $31 million, or 6%, for the nine months ended September 30, 2024 compared to the prior year period reflecting market appreciation on contractual fees.

Corporate & Other

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

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions)

Distribution fees $ — $ 1 $ (1) NM

Net investment income 158 198 (40) (20) %

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Total revenues 369 430 (61) (14)

Banking and deposit interest expense 15 7 8 NM

Banking and deposit interest expense 22 13 9 69

Total net revenues 347 417 (70) (17)

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Benefits, claims, losses and settlement expenses 166 175 (9) (5)

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

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

Amortization of deferred acquisition costs 5 9 (4) (44)

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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 $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.

Our Corporate & Other segment pretax adjusted operating loss increased $145 million, or 70%, for the nine months ended September 30, 2024 compared to the prior year period.

LTC insurance had pretax adjusted operating earnings of $37 million for the nine months ended September 30, 2024 compared to pretax adjusted operating earnings of $19 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 $21 million for the nine months ended September 30, 2024 compared to a pretax adjusted operating loss of $22 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 $40 million, or 20%, for the nine months ended September 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 $18 million, or 11%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting the yield on deposit receivables arising from reinsurance transactions.

AMERIPRISE FINANCIAL, INC.

General and administrative expense, which excludes integration and restructuring charges, increased $95 million, or 49%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting $44 million of higher severance expenses associated with our initiatives to enhance operational efficiency and effectiveness as well as a lease write-down.

Fair Value Measurements

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

Treasury curve as of June 30, 2024.

Treasury curve as of September 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 $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.

Treasury curve, the reduction to future total equity would be approximately $639 million, net of the reinsurance accrual and income taxes (calculated at the statutory tax rate of 21%), based on September 30, 2024 credit spreads.

Liquidity and Capital Resources

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.

As of September 30, 2024 and December 31, 2023, we had Available Capital for Capital Adequacy of $5.5 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 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.

We maintained substantial liquidity during the nine months ended September 30, 2024.

As of September 30, 2024 and December 31, 2023, we had $10.6 billion and $7.5 billion, respectively, in cash and cash equivalents excluding CIEs and other restricted cash on a consolidated basis.

As of September 30, 2024 and December 31, 2023, the parent company had $1.4 billion and $544 million, respectively, in cash, cash equivalents, and unencumbered liquid securities.

Liquid securities predominantly include U.S.

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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 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.

Management’s estimate of liquidity available to the parent company in a volatile and uncertain economic environment as of September 30, 2024 was $2.6 billion which includes cash, cash equivalents, unencumbered liquid securities, the line of credit with an affiliate and a portion of the committed credit facility.

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

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

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

At September 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.

We remained in compliance with all such covenants at September 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 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.

As of September 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 September 30, 2024 and December 31, 2023, and is collateralized with commercial mortgage backed securities and residential 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 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.

As of September 30, 2024 and December 31, 2023, we estimated $11.9 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.

AMERIPRISE FINANCIAL, INC.

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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We are an applicable corporation required to compute CAMT;

however, based on current estimates, we do not expect to be liable for the CAMT in 2024 and therefore have not recorded a liability.

and, based on current estimates, we recorded a CAMT liability for 2024.

Department of the Treasury issued proposed CAMT regulations in the current quarter.

The proposed regulations are subject to public review and comment prior to finalizing.

The Company is evaluating the potential impact of the proposed regulations.

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

We have recorded in shareholders’ equity an estimate of the excise tax liability based on our interpretation of the current guidance.

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

As additional guidance is issued related to the IRA, we will continue to evaluate any impact to our consolidated financial statements.

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.

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ACC markets and sells investment certificates to clients.

ACC is subject to various capital requirements under the 1940 Act, laws of the State of Minnesota and understandings with the SEC and the Minnesota Department of Commerce.

ACC is subject to various capital requirements under the 1940 Act, laws of the State of Minnesota

AMERIPRISE FINANCIAL, INC.

and understandings with the SEC and the Minnesota Department of Commerce.

The terms of the investment certificates issued by ACC and the provisions of the 1940 Act also require the maintenance by ACC of qualified assets.

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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

June 30, 2024

September 30, 2024

December 31, 2023

June 30, 2024

September 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 June 30, 2024 and December 31, 2023.

(2) Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of September 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 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.

During the nine months ended September 30, 2024, the parent holding company received cash dividends or a return of capital from its subsidiaries of $3.2 billion (including $525 million from Ameriprise Bank, $600 million from RiverSource Life and $1.2 billion from AMPF Holding, LLC) and contributed cash to its subsidiaries of $95 million.

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

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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Similar credit protections to what we have with GLIC have been tested and respected in Delaware and elsewhere in the United States, and as a result we believe our credit protections would be respected even in the unlikely event that GLIC becomes subject to rehabilitation or insolvency proceedings in Delaware.

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

Accordingly, while no credit protections are perfect, we believe the correct way to think about the risks represented by our

AMERIPRISE FINANCIAL, INC.

counterparty credit exposure to GLIC is not the full amount of the gross liability that GLIC reinsures, but a much smaller net exposure to GLIC (if any that might exist after taking into account our credit protections).

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

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

AMERIPRISE FINANCIAL, INC.

Dividends Paid to Shareholders and Share Repurchases

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.

We paid regular quarterly dividends to our shareholders totaling $444 million and $427 million for the nine months ended September 30, 2024 and 2023, respectively.

On October 23, 2024, we announced a quarterly dividend of $1.48 per common share.

The dividend will be paid on November 15, 2024 to our shareholders of record at the close of business on November 4, 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 June 30, 2024, we had $2.1 billion remaining under this share repurchase authorization.

As of September 30, 2024, we had $1.5 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 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.

During the nine months ended September 30, 2024, we repurchased a total of 3.8 million shares of our common stock at an average price of $426.72 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 $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.

Net cash provided by operating activities increased $3.7 billion to $6.2 billion for the nine months ended September 30, 2024 compared to $2.5 billion for the prior year period primarily reflecting earnings from our fee based business operations, net cash inflows in brokerage deposits, lower income taxes paid, and higher investment income.

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 $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.

Net cash provided by investing activities was $232 million for the nine months ended September 30, 2024 compared to net cash used in investing activities of $7.3 billion for the prior year period.

The increase in net cash provided by investing activities primarily reflects a $4.5 billion increase in proceeds from maturities, sinking fund payments and calls of Available-for-Sale securities, a $2.6 billion decrease in purchases of Available-for-Sale securities and a $1.1 billion increase in proceeds from sales of Available-for-Sale securities.

Financing Activities

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.

Net cash used in financing activities was $3.7 billion for the nine months ended September 30, 2024 compared to net cash provided by financing activities of $4.0 billion for the prior year period.

The decrease in net cash provided by financing activities primarily reflects a $4.8 billion decrease in net cash flows from investment certificates and a $2.4 billion decrease in the change in banking deposits, net due to the strong growth in the prior year period.

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

AMERIPRISE FINANCIAL, INC.

• statements about the anticipated deposit growth or statements about rising interest rates and the impacts on investment portfolio yield;

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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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The website also allows users to sign up for automatic notifications in the event new materials are posted.

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.

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.

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