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Item 2. Management’s Discussion and Analysis

2025-05-02 compared with 2024-11-01 · 214 added, 497 removed, 466 unchanged (60% of the section changed)

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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 $1.5 trillion in assets under management and administration as of September 30, 2024.

We are a long-standing leader in financial planning and advice with $1.5 trillion in assets under management, administration and advisement as of March 31, 2025.

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

AMERIPRISE FINANCIAL, INC.

discontinued operations;

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.

AMERIPRISE FINANCIAL, INC.

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

The market impact also includes certain valuation adjustments made in accordance with Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value Measurements and Disclosure s, including the impact on embedded derivative values of discounting projected benefits to reflect a current estimate of our life insurance subsidiary’s nonperformance spread.

In the first quarter of 2023, management introduced an adjusted capital measure (“Available Capital for Capital Adequacy”), which management believes best reflects the available capital resources of our core operations and facilitates a meaningful trend analysis.

Available Capital for Capital Adequacy adjusts GAAP total equity and excludes accumulated other comprehensive income (“AOCI”);

goodwill and intangibles;

RiverSource Life Insurance Company’s GAAP equity excluding AOCI;

and includes RiverSource Life Insurance Company’s statutory total adjusted capital prepared in conformity with accounting practices prescribed or permitted by the State of Minnesota Department of Commerce;

and other adjustments, primarily certain deferred tax balances.

Management uses these non-GAAP measures to evaluate our financial performance and available capital on a basis comparable to that used by some securities analysts and investors.

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Per Diluted Share

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions, except per share amounts)

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(460) 140 (4.60) 1.34

Mean reversion related impacts (1)

Integration/restructuring charges (1)

— (47) — (0.43)

Net income (loss) attributable to CIEs (2) 1 (0.02) 0.01

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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 September 30,

Twelve Months Ended March 31,

(in millions)

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

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

September 30, 2024 December 31, 2023

(in millions)

Ameriprise Financial, Inc.

GAAP total equity $ 5,715 $ 4,729

AOCI (1,101) (1,766)

Ameriprise Financial, Inc.

GAAP total equity, excluding AOCI 6,816 6,495

RiverSource Life Insurance Company GAAP equity, excluding AOCI 1,658 1,851

RiverSource Life Insurance Company statutory total adjusted capital 2,721 3,093

Goodwill and intangibles 2,626 2,622

Other adjustments 270 303

Available Capital for Capital Adequacy

$ 5,523 $ 5,418

Critical Accounting Estimates

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For information regarding recent accounting pronouncements and their expected impact on our future consolidated results of operations and financial condition, see Note 2 to our Consolidated Financial Statements.

AMERIPRISE FINANCIAL, INC.

Economic Environment

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The following table presents relevant market indices:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Daily average 5,899 4,996 18%

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(1) Weighted Equity Index is an Ameriprise calculated proxy for equity market movements calculated using a weighted average of the S&P 500, Russell 2000, Russell Midcap and MSCI EAFE indices based on North America distributed equity assets.

See our segment results of operations discussion below for additional information on how changes in the economic environment have and may continue to impact our results.

See our segment results of operations discussion below for additional information on how changes in the economic environment have impacted and may continue to impact our results.

For further information regarding the impact of the economic environment on our results of operations and financial condition, and potentially material effects, see Part 1 - Item 1A “Risk Factors” of our 2024 10-K.

Assets Under Management and Administration

AMERIPRISE FINANCIAL, INC.

Assets Under Management, Administration and Advisement

Assets under management (“AUM”) include external client assets for which we provide investment management services, such as the assets of the Columbia Threadneedle Investments funds, institutional clients and clients in our advisor platform held in wrap accounts as well as assets managed by sub-advisors selected by us.

AUM also includes certain assets on our Consolidated Balance Sheets for which we provide investment management services and recognize management fees in our Asset Management segment, such as the assets of the general account and the variable product funds held in the separate accounts of our life insurance subsidiaries and CIEs.

Assets under administration (“AUA”) include assets for which we provide administrative services such as client assets invested in other companies’ products that we offer outside of our wrap accounts.

Assets under administration include assets for which we provide administrative services such as client assets invested in other companies’ products that we offer outside of our wrap accounts.

These assets include those held in clients’ brokerage accounts.

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These assets are not reported on our Consolidated Balance Sheets.

AUA also includes certain assets on our Consolidated Balance Sheets for which we do not provide investment management services and do not recognize management fees, such as investments in non-affiliated funds held in the separate accounts of our life insurance subsidiaries.

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

The following table presents detail regarding our AUM and AUA:

September 30,

Assets under administration also include certain assets on our Consolidated Balance Sheets for which we do not provide investment management services and do not recognize management fees, such as investments in non-affiliated funds held in the separate accounts of our life insurance subsidiaries.

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

The following table presents detail regarding our Assets Under Management, Administration and Advisement:

(in billions)

Assets Under Management and Administration

Assets Under Management, Administration and Advisement

Advice & Wealth Management AUM $ 569.1 $ 518.1 $ 51.0 10 %

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Total Assets Under Administration 314.1 297.5 16.6 6

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

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.

Total Assets Under Advisement (net of eliminations)

33.7 27.8 5.9 21

Total Assets Under Management, Administration and Advisement

$ 1,494.7 $ 1,452.7 $ 42.0 3 %

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

Total AUM increased $19.5 billion, or 2%, to $1.1 trillion as of March 31, 2025 compared to $1.1 trillion as of March 31, 2024 due to a $51.0 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $30.7 billion decrease in Asset Management AUM primarily driven by net outflows, partially offset by equity market appreciation.

Total Assets Under Administration increased $16.6 billion, or 6%, to $314.1 billion as of March 31, 2025 compared to the prior year period primarily driven by equity market appreciation and an increase in third-party money market funds.

Total Assets Under Advisement increased $5.9 billion, or 21%, to $33.7 billion as March 31, 2025 due to market appreciation and net inflows.

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 September 30, 2024 and 2023

Consolidated Results of Operations for the Three Months Ended March 31, 2025 and 2024

The following table presents our consolidated results of operations:

Three Months Ended September 30,

Three Months Ended March 31,

(in millions)

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Interest credited to fixed accounts 130 132 (2) (2)

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

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

Benefits, claims, losses and settlement expenses 381 295 86 29

Remeasurement (gains) losses of future policy benefit reserves (10) (4) (6) NM

Change in fair value of market risk benefits 497 (18) 515 NM

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

Pretax income decreased $472 million, or 42%, for the three months ended September 30, 2024 compared to the prior year period.

Pretax income decreased $532 million, or 44%, for the three months ended March 31, 2025 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 $402 million for the three months ended September 30, 2024 compared to a benefit of $211 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 $460 million for the three months ended March 31, 2025 compared to a benefit of $140 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 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 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.

AMERIPRISE FINANCIAL, INC.

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

Our average WEI, which is a proxy for equity movements on AUM, increased 15% in the three months ended March 31, 2025 compared to the prior year period.

• The favorable impact from the cumulative impact of wrap net inflows and improved transactional activity.

Management and financial advice fees increased $203 million, or 8%, for the three months ended March 31, 2025 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 and higher performance fees in the prior year period.

Distribution fees increased $16 million, or 3%, for the three months ended March 31, 2025 compared to the prior year period primarily due to market appreciation and higher transactional activity, partially offset by $14 million of lower fees on off-balance sheet brokerage cash.

Net investment income decreased $33 million, or 4%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting the unfavorable impact of declining investment portfolio yields, partially offset by the favorable impact of growth in Ameriprise Bank, FSB (“Ameriprise Bank”) customer deposits and structured variable annuities (“SVA”) products.

Premiums, policy and contract charges decreased $30 million, or 8%, for the three months ended March 31, 2025 compared to the prior year period primarily due to lower sales of life contingent payout annuities.

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.

This increase was the result of an unfavorable $983 million change in the market impact on variable annuity guaranteed benefits reserves, partially offset by a favorable $595 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits.

Banking and deposit interest expense decreased $52 million, or 29%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting lower average crediting rates and lower balances on certificates and lower average crediting rates on Ameriprise Bank cash deposits.

Distribution expenses increased $193 million, or 14%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting higher advisor compensation from higher average wrap account assets and higher transactional activity, as well as investments in recruiting experienced advisors.

Benefits, claims, losses and settlement expenses increased $86 million, or 29%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting a $102 million increase in expense from market impacts on SVA embedded derivative, net of hedging activity.

This increase was primarily the result of an unfavorable $1.3 billion change in the market impact on derivatives hedging the SVA embedded derivative and a favorable $1.2 billion change in the market impact on SVA embedded derivative.

The increase in expense also reflects the impact of increased volume in SVAs, partially offset by the impact of lower sales of life contingent payout annuities.

Change in fair value of market risk benefits increased $515 million for the three months ended March 31, 2025 compared to the prior year period primarily reflecting the following items:

• A $501 million increase in expense from other market impacts on variable annuity guaranteed benefits, net of hedges.

This increase was the result of an unfavorable $1.8 billion change in the market impact on variable annuity guaranteed benefits reserves, partially offset by a favorable $1.3 billion change in the market impact on derivatives hedging the variable annuity guaranteed benefits.

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

• Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the three months ended 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.

• Equity market 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 March 31, 2025 compared to a benefit 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 March 31, 2025 compared to a benefit in the prior year period.

• Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the three months ended March 31, 2025 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 March 31, 2025 compared to the prior year period.

General and administrative expense decreased $44 million, or 5%, for the three months ended March 31, 2025 compared to the prior year period primarily due to ongoing benefits from our initiatives to enhance operational efficiency and effectiveness and higher prior year period performance fee related compensation, partially offset by expenses to accelerate our transition to cloud-based technology.

Our effective tax rate was 15.1% for the three months ended March 31, 2025 compared to 18.8% for the prior year period.

The decrease in the effective tax rate for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily due to lower pretax income in the current period compared to the prior period and the related impact on tax preferred items, an increase in the benefit for incentive compensation, an increase in foreign tax credits, net of addback, partially offset by an increase in state income taxes, net of federal benefit and an increase in unrecognized tax benefits.

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

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

Results of Operations by Segment for the Three Months Ended March 31, 2025 and 2024

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

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The following table presents summary financial information by segment:

Three Months Ended September 30,

Three Months Ended March 31,

(in millions)

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Adjusted operating loss $ (97) $ (89)

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 September 30:

The following table presents Advice & Wealth Management total client assets as of March 31:

(in billions)

Wrap assets (1)

$ 572.8 $ 521.7

Brokerage and other assets (1)

Total client assets $ 1,022.5 $ 953.8

(1) Total cash balances (included in the wrap and brokerage and other assets above)

$ 86.0 $ 82.4

Total client assets increased $68.7 billion, or 7%, to $1.0 trillion compared to a year ago primarily due to market appreciation and client net inflows.

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

(in billions)

Beginning balance $ 573.9 $ 488.2

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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 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.

(2) Average advisory wrap account assets are calculated using an average of the prior period’s ending balance and all months in the current period excluding the most recent month for the three months ended March 31, 2025 and 2024, which is reflective of our billing cycle.

Ending wrap account assets decreased $1.1 billion to $572.8 billion during the three months ended March 31, 2025 due to market depreciation of $9.8 billion and net inflows of $8.7 billion.

Average advisory wrap account assets increased $88.0 billion, or 18%, compared to the prior year period primarily reflecting market appreciation and net inflows.

AMERIPRISE FINANCIAL, INC.

The following table presents client cash balances as of March 31:

Cash and Certificates Balances

(in billions)

On-balance sheet - Ameriprise Bank

$ 22.7 $ 21.3

On-balance sheet - Ameriprise Certificate Company

On-balance sheet - broker dealer

Total on-balance sheet

Off-balance sheet - broker dealer

Total cash and certificate balances

Third party cash products (money market funds and brokered CDs)

Total client cash balances

$ 86.0 $ 82.4

Ameriprise Bank is continuing its deposit growth trend, with bank deposit balances increasing 7% from the prior year to $22.7 billion as of March 31, 2025.

Ameriprise Certificate Company (“ACC”) client deposits decreased $2.5 billion from the prior year to $10.7 billion.

After a period of strong growth during a rising interest rate environment, ACC has experienced net outflows during the past five quarters.

Third party cash products increased $6.9 billion to $46.0 billion driven by an increase of money market funds of $9.2 billion, partially offset by a decline in brokered CDs.

The following table presents assets supporting Ameriprise Bank deposits and ACC certificates as of March 31:

Ameriprise Bank ACC

2025 2024 2025 2024

(in millions)

Fixed and adjustable rate (1)

$ 18,181 $ 15,004 $ 6,402 $ 7,696

Floating rate (1)

3,141 5,340 4,070 5,289

Total Available-for-Sale securities 21,322 20,344 10,472 12,985

Cash and cash equivalents 1,772 1,745 853 904

Loans and other assets 1,397 997 145 179

Total assets supporting deposits or certificates $ 24,491 $ 23,086 $ 11,470 $ 14,068

(1) Presented on an amortized cost basis.

• In Ameriprise Bank, interest-bearing assets included $21.3 billion of Available-for-Sale securities, $1.8 billion of cash and cash equivalents, and $1.4 billion of other assets, primarily loans.

The Ameriprise Bank investment portfolio securities are mostly rated AAA and primarily consist of structured assets, of which 15% were floating rate and sensitive to changes in short-term interest rates as of March 31, 2025.

We took action to reduce the floating rate allocation from 26% as of March 31, 2024.

The duration of Ameriprise Bank investments was 3.6 years as of March 31, 2025 compared to 3.4 years as of March 31, 2024.

In the three months ended March 31, 2025, we purchased $2.6 billion of investments, which was primarily funded from security maturities and prepayments, as well as a portion of the cash and cash equivalents position and additional client deposits in the bank.

• In ACC, interest-bearing assets include $10.5 billion of Available-for-Sale securities, $0.9 billion of cash and cash equivalents, and $0.1 billion of loans and other assets.

The ACC investment portfolio securities are mostly rated AAA and primarily consist of structured assets and government bonds, of which 39% were floating rate and approximately 23% were 6-month Treasury Bills as of March 31, 2025.

The duration of ACC investments was 1.3 years as of March 31, 2025 compared to 0.9 years as of March 31, 2024.

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 September 30,

Three Months Ended March 31,

(in millions)

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Adjusted operating earnings $ 792 $ 762 $ 30 4 %

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 $21.5 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.

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $30 million, or 4%, for the three months ended March 31, 2025 compared to the prior year period.

This growth reflected the benefit from market appreciation and increased advisor productivity through the cumulative impact of client net inflows and higher transactional revenue, partially offset by lower interest revenue.

Pretax adjusted operating margin was 28.5% for the three months ended March 31, 2025 compared to 29.8% for the prior year period.

Management and financial advice fees increased $210 million, or 14%, for the three months ended March 31, 2025 compared to the prior year period primarily due to growth in average wrap account assets.

Average advisory wrap account assets increased $88.0 billion, or 18%, compared to the prior year period primarily reflecting net inflows and market appreciation.

Distribution fees increased $15 million, or 3%, for the three months ended March 31, 2025 compared to the prior year period as non-brokerage cash revenue increased $29 million reflecting higher transactional activity and market appreciation, while brokerage cash revenue decreased $14 million 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, decreased $60 million, or 11%, for the three months ended March 31, 2025 compared to the prior year period primarily due to lower average invested assets supporting certificates and the unfavorable impact of lower investment yields on the investment portfolios supporting the bank cash deposits and certificate products.

• The average certificate reserve balance for ACC was $10.9 billion for the three months ended March 31, 2025 compared to $13.4 billion for the prior year period with the average crediting rate of 3.95% for the three months ended March 31, 2025 compared to 4.64% for the prior year period.

• The daily average interest-bearing deposit balance for the Ameriprise Bank increased to $22.2 billion for the three months ended March 31, 2025 compared to $21.3 billion for the prior year period with the average interest rate paid on deposits decreasing to 0.31% for the three months ended March 31, 2025 from 0.42% for the prior year period, which included both cash sweep and savings products.

Distribution expenses increased $185 million, or 14%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting market appreciation and higher transactional activity, as well as investments in recruiting experienced advisors.

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 September 30, 2024:

The following tables present the mutual fund performance of our retail Columbia Threadneedle Investments funds as of March 31, 2025:

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

8 unchanged sentences

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

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

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

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

8 unchanged sentences

The following table presents global managed assets by type:

As of September 30,

As of March 31,

Change Three Months Ended

September 30,

(in billions)

8 unchanged sentences

The following table presents the changes in global managed assets:

Three Months Ended September 30,

Three Months Ended March 31,

(in billions)

Global Retail Funds

Beginning assets $ 347.5 $ 327.4

Beginning managed assets

$ 352.7 $ 334.9

Inflows 15.0 14.0

7 unchanged sentences

Foreign currency translation (1)

Total ending assets 362.4 310.2

Total ending managed assets

Global Institutional

Beginning assets 294.4 289.2

Beginning managed assets

(22.0) (12.2)

Net flows (12.5) (2.9)

1 unchanged sentence

Foreign currency translation (1)

Total ending assets 309.7 277.0

Total ending managed assets

Total managed assets 621.4 652.1

Total net flows $ (3.6) $ (4.2)

Legacy insurance partners net flows (4)

$ (0.9) $ (0.9)

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

dollar translation for reporting purposes.

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

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

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

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 September 30,

(in millions)

Management and financial advice fees $ 760 $ 717 $ 43 6 %

Distribution fees 98 92 6 7

Net investment income 17 10 7 70

Other revenues 7 7 — —

Total revenues 882 826 56 7

Banking and deposit interest expense — — — —

Total net revenues 882 826 56 7

Distribution expenses 250 234 16 7

Amortization of deferred acquisition costs 2 1 1 NM

Interest and debt expense 2 2 — —

General and administrative expense 383 390 (7) (2)

Total expenses 637 627 10 2

Adjusted operating earnings $ 245 $ 199 $ 46 23 %

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.

Retirement & Protection Solutions

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

Three Months Ended September 30,

(in millions)

Management and financial advice fees $ 196 $ 186 $ 10 5 %

Distribution fees 106 101 5 5

Net investment income 281 215 66 31

Premiums, policy and contract charges 388 372 16 4

Other revenues 2 2 — —

Total revenues 973 876 97 11

Banking and deposit interest expense — — — —

Total net revenues 973 876 97 11

Distribution expenses 131 117 14 12

Interest credited to fixed accounts 92 94 (2) (2)

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

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

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

Amortization of deferred acquisition costs 57 57 — —

Interest and debt expense 11 12 (1) (8)

General and administrative expense 79 79 — —

Total expenses 855 776 79 10

Adjusted operating earnings $ 118 $ 100 $ 18 18 %

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 $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.

Corporate & Other

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

Three Months Ended September 30,

(in millions)

Distribution fees $ — $ 1 $ (1) NM

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

Premiums, policy and contract charges 24 25 (1) (4)

Other revenues 45 52 (7) (13)

Total revenues 122 149 (27) (18)

Banking and deposit interest expense 7 6 1 17

Total net revenues 115 143 (28) (20)

Distribution expenses (3) (3) — —

Interest credited to fixed accounts 55 59 (4) (7)

Benefits, claims, losses and settlement expenses 56 59 (3) (5)

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

Amortization of deferred acquisition costs — 4 (4) NM

Interest and debt expense 32 28 4 14

General and administrative expense 115 70 45 64

Total expenses 258 215 43 20

Adjusted operating loss $ (143) $ (72) $ (71) (99) %

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

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

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

Our Corporate & Other segment pretax adjusted operating loss increased $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.

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:

Nine Months Ended September 30,

(in millions)

Management and financial advice fees $ 7,428 $ 6,623 $ 805 12 %

Distribution fees 1,524 1,462 62 4

Net investment income 2,756 2,318 438 19

Premiums, policy and contract charges 1,180 1,135 45 4

Other revenues 389 390 (1) —

Total revenues 13,277 11,928 1,349 11

Banking and deposit interest expense 514 385 129 34

Total net revenues 12,763 11,543 1,220 11

Distribution expenses 4,408 3,771 637 17

Interest credited to fixed accounts 435 464 (29) (6)

Benefits, claims, losses and settlement expenses 1,056 748 308 41

Remeasurement (gains) losses of future policy benefit reserves (34) (17) (17) NM

Change in fair value of market risk benefits 658 558 100 18

Amortization of deferred acquisition costs 181 185 (4) (2)

Interest and debt expense 252 240 12 5

General and administrative expense 2,892 2,854 38 1

Total expenses 9,848 8,803 1,045 12

Pretax income

2,915 2,740 175 6

Income tax provision 585 561 24 4

Net income $ 2,330 $ 2,179 $ 151 7 %

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

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 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.

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.

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 $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 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.

• 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:

Nine Months Ended September 30,

(in millions)

Advice & Wealth Management

Net revenues $ 7,946 $ 7,015

Expenses 5,536 4,862

Adjusted operating earnings $ 2,410 $ 2,153

Asset Management

Net revenues $ 2,585 $ 2,433

Expenses 1,916 1,907

Adjusted operating earnings $ 669 $ 526

Retirement & Protection Solutions

Net revenues $ 2,813 $ 2,558

Expenses 2,300 2,075

Adjusted operating earnings $ 513 $ 483

Corporate & Other

Net revenues $ 347 $ 417

Expenses 698 623

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 nine months ended September 30:

(in billions)

Beginning balance $ 488.2 $ 412.1

Net flows 22.0 17.3

Market appreciation (depreciation) and other 58.9 14.7

Ending balance $ 569.1 $ 444.1

Advisory wrap account assets ending balance (1)

$ 563.4 $ 439.3

Average advisory wrap account assets (2)

Total assets under advisement (4)

Total assets under management and advisement

$ 656.7 $ 680.7

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

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

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

Nine Months Ended September 30,

(in millions)

Management and financial advice fees $ 4,739 $ 4,077 $ 662 16 %

Distribution fees 1,820 1,714 106 6

Net investment income 1,674 1,409 265 19

Other revenues 227 200 27 14

Total revenues 8,460 7,400 1,060 14

Banking and deposit interest expense 514 385 129 34

Total net revenues 7,946 7,015 931 13

Distribution expenses 4,260 3,622 638 18

Interest and debt expense 28 19 9 47

General and administrative expense 1,248 1,221 27 2

Total expenses 5,536 4,862 674 14

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 $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 $21.4 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 $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 September 30,

Change Nine Months Ended

September 30,

(in billions)

Equity $ 353.8 $ 299.1 $ 54.7 18 % $ 337.5 $ 310.3 $ 27.2 9 %

Fixed income 243.5 214.9 28.6 13 233.7 220.7 13.0 6

Money market 21.7 22.7 (1.0) (4) 22.5 22.6 (0.1) —

Alternative 33.3 33.6 (0.3) (1) 33.2 34.8 (1.6) (5)

Hybrid and other 19.8 16.9 2.9 17 18.9 17.2 1.7 10

Total managed assets $ 672.1 $ 587.2 $ 84.9 14 % $ 645.8 $ 605.6 $ 40.2 7 %

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

The following table presents the changes in global managed assets:

Nine Months Ended September 30,

(in billions)

Global Retail Funds

Beginning assets $ 334.9 $ 309.3

Inflows 39.7 34.9

Outflows (50.6) (47.9)

Net VP/VIT fund flows (4.9) (3.7)

Net new flows

Total assets under management net flows

$ (18.3) $ (5.7)

Reinvested dividends 4.3 3.4

Net flows (11.5) (13.3)

Distributions (5.1) (4.1)

Market appreciation (depreciation) and other 40.8 17.5

Foreign currency translation (1)

Total ending assets 362.4 310.2

Global Institutional

Beginning assets 302.0 274.7

Model delivery assets under advisement flows (5)

Total assets under management and advisement flows (5)

$ (18.3) $ (5.5)

Market appreciation (depreciation) and other (3)

Foreign currency translation (1)

Total ending assets 309.7 277.0

Total managed assets $ 672.1 $ 587.2

Total net flows $ (21.3) $ (12.0)

Legacy insurance partners net flows (6)

$ (1.0) $ (0.8)

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

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

dollar translation for reporting purposes.

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

(4) Assets under advisement are presented on a one-quarter lag.

(5) Assets under advisement flows are estimated flows based on the period-to-period change in assets less calculated performance based on strategy returns on a one-quarter lag.

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

Total segment AUM decreased $23.5 billion, or 4%, during the three months ended March 31, 2025 primarily due to net outflows and market depreciation, partially offset by a favorable foreign exchange impact.

Net outflows of $18.3 billion for the three months ended March 31, 2025 were primarily driven by a large institutional client repositioning into passive strategies, outflows from our U.S.

real estate business, and higher retail redemptions due to market volatility.

AMERIPRISE FINANCIAL, INC.

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:

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions)

12 unchanged sentences

Adjusted operating earnings $ 241 $ 206 $ 35 17 %

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.

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $35 million, or 17%, for the three months ended March 31, 2025 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 decreased $2 million for the three months ended March 31, 2025 compared to the prior year period primarily due to the cumulative impact from net outflows and higher performance fees in the prior year period, partially offset by higher average equity markets.

General and administrative expense decreased $49 million, or 12%, for the three months ended March 31, 2025 compared to the prior year period reflecting the benefits from our initiatives to enhance operational efficiency and effectiveness along with higher performance fee related compensation in the prior year period.

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:

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions)

17 unchanged sentences

Adjusted operating earnings $ 215 $ 199 $ 16 8 %

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.

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 indexed universal life (“IUL”) benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $16 million, or 8%, for the three months ended March 31, 2025 compared to prior year period primarily reflecting higher investment portfolio yields.

Variable annuity account balances decreased 1% to $83.5 billion as of March 31, 2025 compared to the prior year period due to net outflows of $3.9 billion, partially offset by market appreciation.

Variable annuity sales decreased 8% compared to the prior year period primarily reflecting a decrease in sales of SVAs, partially offset by an increase in sales in traditional variable annuities without living benefit guarantees.

Account values with living benefit riders declined to 49% as of March 31, 2025 compared to 53% 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 $53 million, or 22%, for the three months ended March 31, 2025 compared to the prior year period primarily due to higher SVA balances and higher investment portfolio yields from investment portfolio repositioning.

Premiums, policy and contract charges decreased $33 million, or 9%, for the three months ended March 31, 2025 compared to the prior year period primarily due to lower sales of life contingent payout annuities.

Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, decreased $13 million, or 6%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting lower sales of life contingent payout annuities, partially offset by increased volume in SVAs.

Change in fair value of market risk benefits increased $14 million, or 11%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting market appreciation on contractual fees.

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:

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions)

Distribution fees $ — $ 1 $ (1) NM

Net investment income $ 47 $ 58 $ (11) (19) %

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Benefits, claims, losses and settlement expenses 56 53 3 6

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

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

Amortization of deferred acquisition costs 2 2 — —

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

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 $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.

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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.

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

Our Corporate & Other segment pretax adjusted operating loss increased $8 million for the three months ended March 31, 2025 compared to the prior year period, reflecting lower net investment income.

LTC insurance had pretax adjusted operating earnings of $14 million for the three months ended March 31, 2025 compared to pretax adjusted operating earnings of $16 million for the prior year period primarily reflecting lower investment portfolio yields, partially offset by improved claims experience.

The FA business had a pretax adjusted operating loss of $8 million for the three months ended March 31, 2025 compared to a pretax adjusted operating loss of $6 million for the prior year period.

Fixed deferred annuity account balances declined 9% to $5.5 billion as of March 31, 2025 compared to the prior year period as policies continue to lapse.

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 $11 million, or 19%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting lower investment portfolio yields.

General and administrative expense decreased $6 million, or 8%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting favorable mark-to-market impacts on share-based compensation in the current period compared to unfavorable impacts in the prior year period along with a lease write-down in the prior year period.

Fair Value Measurements

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Fair value assumes the exchange of assets or liabilities occurs in orderly transactions and is not the result of a forced liquidation or distressed sale.

We include actual market prices, or observable inputs, in our fair value measurements to the extent available.

We include actual market prices, or observable inputs, in our

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fair value measurements to the extent available.

Broker quotes are obtained when quotes from pricing services are not available.

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

Treasury curve as of September 30, 2024.

Treasury curve as of March 31, 2025.

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 $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.

Treasury curve, the reduction to future total equity would be approximately $571 million, net of the reinsurance accrual and income taxes (calculated at the statutory tax rate of 21%), based on March 31, 2025 credit spreads.

Liquidity and Capital Resources

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 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.

We maintained substantial liquidity during the three months ended March 31, 2025.

As of March 31, 2025 and December 31, 2024, we had $7.8 billion and $8.1 billion, respectively, in cash and cash equivalents excluding CIEs and other restricted cash on a consolidated basis.

As of March 31, 2025 and December 31, 2024, the parent company had $1.3 billion and $856 million, respectively, in cash, cash equivalents, and unencumbered liquid securities.

Liquid securities predominantly include U.S.

government agency mortgage backed securities.

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 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.

Additional sources of liquidity at the parent company include a line of credit with an affiliate up to $750 million and an unsecured revolving committed credit facility for up to $1.0 billion that expires in November 2029.

Management’s estimate of liquidity available to the parent company in a volatile and uncertain economic environment as of March 31, 2025 was $2.5 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 $1.3 billion upon satisfaction of certain approval requirements.

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

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.

At March 31, 2025, 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 September 30, 2024.

We remained in compliance with all such covenants at March 31, 2025.

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 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.

As of March 31, 2025 and December 31, 2024, we had $10.4 billion and $8.5 billion, respectively, of estimated borrowing capacity under the FHLB facilities, of which $201 million was outstanding as of both March 31, 2025 and December 31, 2024, 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 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.

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As of March 31, 2025 and December 31, 2024, we estimated $11.4 billion and $11.9 billion, respectively, of borrowing capacity from the Federal Reserve in addition to the FHLB capacity and there were no outstanding obligations.

There have been no material changes to our contractual obligations disclosed in our 2024 10-K.

See Note 11 to our Consolidated Financial Statements for further information about our long-term debt maturities, including $550 million maturing in October 2024.

On February 28, 2025, we issued $750 million of 5.20% unsecured senior notes due April 15, 2035.

On April 2, 2025, we repaid $500 million principal amount of our 3.0% senior notes at maturity.

See Note 11 to our Consolidated Financial Statements for further information about our long-term debt maturities.

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

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

We have evaluated the tax provisions of the IRA, the most significant of which are the corporate alternative minimum tax (“CAMT”) and the share repurchase excise tax.

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

We are an applicable corporation required to compute CAMT;

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

AMERIPRISE FINANCIAL, INC.

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

For information on the impact of the BBA, see “Business - Regulation - Federal Banking and Financial Holding Company Regulation” included in Part I, Item 1 in our 2024 10-K.

We are an applicable corporation required to compute the corporate alternative minimum tax (“CAMT”);

however, as of March 31, 2025, based on current estimates, we do not expect to be liable for CAMT in 2025.

This estimate is based on interpretations and assumptions of available guidance, including proposed regulations, that we have made regarding the CAMT provisions of the Inflation Reduction Act of 2022.

In December 2021, the Organization for Economic Co-operation and Development published the Pillar Two model rules which introduce new taxing mechanisms aimed at ensuring multinational enterprises pay a minimum level of tax on profits from each jurisdiction in which they operate.

Various jurisdictions in which we operate have enacted or substantively enacted Pillar Two legislation that became effective beginning January 1, 2024.

We intend to rely on Pillar Two transitional safe harbors where available and, based on the current estimate, have not recorded any Pillar Two tax liabilities.

As of March 31, 2025 and December 31, 2024, the tax impact is not material to the consolidated financial statements.

We continue to monitor the adoption and implementation of these rules and evaluate the potential impact on our consolidated financial statements.

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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

AMERIPRISE FINANCIAL, INC.

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 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.

Required capital reflects 110% of the Own Funds Threshold Requirement (“OFTR”) and is determined by the group through its ongoing Internal Capital Adequacy and Risk Assessment (“ICARA”) process.

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

September 30, 2024

March 31, 2025

December 31, 2024

September 30, 2024

March 31, 2025

December 31, 2024

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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 September 30, 2024 and December 31, 2023.

(2) Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of March 31, 2025 and December 31, 2024.

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

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

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

The rule became effective January 1, 2024, with reporting to the FRB beginning in 2025.

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

During the 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.

During the three months ended March 31, 2025, the parent holding company received cash dividends or a return of capital from its subsidiaries of $888 million (including $200 million from RiverSource Life and $385 million from AMPF Holding, LLC) and contributed cash to its subsidiaries of $90 million.

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

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

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).

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

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

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Dividends Paid to Shareholders and Share Repurchases

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.

We paid regular quarterly dividends to our shareholders totaling $148 million and $143 million for the three months ended March 31, 2025 and 2024, respectively.

On April 24, 2025, we announced a quarterly dividend of $1.60 per common share.

The dividend will be paid on May 19, 2025 to our shareholders of record at the close of business on May 5, 2025.

AMERIPRISE FINANCIAL, INC.

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

As of September 30, 2024, we had $1.5 billion remaining under this share repurchase authorization.

As of March 31, 2025, we had $271 million remaining under this share repurchase authorization.

On April 22, 2025, our Board of Directors authorized an additional $4.5 billion for the repurchase of our common stock through June 30, 2027.

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 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.

During the three months ended March 31, 2025, we repurchased a total of 1.2 million shares of our common stock at an average price of $525.76 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 $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.

Net cash provided by operating activities increased $242 million to $1.7 billion for the three months ended March 31, 2025 compared to $1.4 billion for the prior year period primarily reflecting earnings from our fee based business operations, partially offset by net cash outflows in brokerage deposits.

Investing Activities

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

Net cash 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.

Net cash used in investing activities increased $1.2 billion to $1.7 billion for the three months ended March 31, 2025 compared to $569 million for the prior year period driven by a $2.9 billion increase in purchases of Available-for-Sale securities, partially offset by a $1.1 billion increase in proceeds from sales of Available-for-Sale securities and a $938 million increase in proceeds from maturities, sinking fund payments and calls of Available-for-Sale securities.

Financing Activities

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.

Net cash used in financing activities decreased $943 million to $488 million for the three months ended March 31, 2025 compared to $1.4 billion for the prior year period.

The decrease in net cash used in financing activities primarily reflects $740 million in proceeds from our long-term debt issuance and a $533 million increase in the change in banking deposits, net.

Forward-Looking Statements

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Examples of such forward-looking statements include:

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

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

AMERIPRISE FINANCIAL, INC.

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

• statements about the expected trend in the shift to lower-risk products, including the exit from variable annuities with living benefit riders;

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

• other statements about future economic performance, the performance of equity markets and interest rate variations and the economic performance of the United States and of global markets;

• other statements about future economic performance, the performance of equity and bond markets and interest rate variations and the economic performance of the United States and of global markets;

• statements of assumptions underlying such statements.

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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 determination of the amount of allowances taken on loans and investments;

• the illiquidity of our investments;

• failures by other insurers that lead to higher assessments we owe to state insurance guaranty funds;

• the illiquidity of some of our investments;

• failures or defaults by counterparties to our reinsurance arrangements;

• failures by other insurers that lead to higher assessments we owe to state insurance guaranty funds;

• inadequate reserves for future policy benefits and claims or for future redemptions and maturities;

• deviations from our assumptions regarding morbidity, mortality and persistency affecting our insurance profitability;

• changes to our reputation arising from employee or advisor misconduct or otherwise;

• damage to our reputation arising from employee or advisor misconduct or otherwise;

• direct or indirect effects of or responses to climate change;

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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