What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-05 compared with 2025-05-02 · 385 added, 122 removed, 558 unchanged (48% 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, administration and advisement as of March 31, 2025.

We are a long-standing leader in financial planning and advice with $1.6 trillion in assets under management, administration and advisement as of June 30, 2025.

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

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We operate our business in the broader context of the macroeconomic forces around us, including the global and U.S.

economies, changes in interest and inflation rates, financial market volatility, fluctuations in foreign exchange rates, geopolitical strain, pandemics, the competitive environment, client and customer activities and preferences, and the various regulatory and legislative developments.

economies, changes in interest and inflation rates, financial market volatility, fluctuations in foreign exchange rates, geopolitical strain, the competitive environment, client and customer activities and preferences, and the various regulatory and legislative developments.

Financial markets and macroeconomic conditions have had and will continue to have a significant impact on our operating and performance results.

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Per Diluted Share

Three Months Ended March 31,

Six Months Ended June 30,

(in millions, except per share amounts)

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(241) 80 (2.42) 0.77

Mean reversion related impacts (1)

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

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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 March 31,

Twelve Months Ended June 30,

(in millions)

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The following table presents relevant market indices:

Three Months Ended March 31,

Three Months Ended June 30,

Daily average 5,728 5,253 9%

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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.

Total AUM increased $90.5 billion, or 8%, to $1.2 trillion as of June 30, 2025 compared to $1.1 trillion as of June 30, 2024 due to an $80.1 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $12.3 billion increase in Asset Management AUM primarily driven by equity market appreciation and a favorable foreign exchange impact, partially offset by net outflows.

Total Assets Under Administration increased $32.6 billion, or 11%, to $331.0 billion as of June 30, 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 $2.8 billion, or 9%, to $33.8 billion as June 30, 2025 due to net inflows and market appreciation.

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

AMERIPRISE FINANCIAL, INC.

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

Consolidated Results of Operations for the Three Months Ended June 30, 2025 and 2024

The following table presents our consolidated results of operations:

Three Months Ended March 31,

Three Months Ended June 30,

(in millions)

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Benefits, claims, losses and settlement expenses 257 331 (74) (22)

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

Remeasurement (gains) losses of future policy benefit reserves (3) (8) 5 63

Change in fair value of market risk benefits (10) 110 (120) NM

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

Pretax income decreased $532 million, or 44%, for the three months ended March 31, 2025 compared to the prior year period.

Pretax income increased $300 million, or 29%, for the three months ended June 30, 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 $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.

• The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was a benefit of $219 million for the three months ended June 30, 2025 compared to an expense of $60 million for the prior year period.

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

Our average WEI, which is a proxy for equity movements on AUM, increased 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.

Our average WEI, which is a proxy for equity movements on AUM, increased 8% in the three months ended June 30, 2025 compared to the prior year period.

• The favorable impact from the cumulative impact of wrap net inflows.

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

Management and financial advice fees increased $144 million, or 6%, for the three months ended June 30, 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.

Net investment income decreased $30 million, or 3%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting lower average invested assets supporting certificates and 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 $20 million, or 5%, for the three months ended June 30, 2025 compared to the prior year period primarily due to lower sales of life contingent payout annuities.

AMERIPRISE FINANCIAL, INC.

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.

Banking and deposit interest expense decreased $57 million, or 33%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting lower balances and lower average crediting rates on certificates and lower average crediting rates on Ameriprise Bank cash deposits.

Distribution expenses increased $146 million, or 10%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting higher advisor compensation from higher average wrap account assets, as well as investments in recruiting experienced advisors.

Interest credited to fixed accounts decreased $90 million, or 49%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting the following items:

• A $106 million decrease in expense from other market impacts on indexed universal life (“IUL”) benefits, net of hedges, which was a benefit of $62 million for the three months ended June 30, 2025 compared to an expense of $44 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 more discounting due to higher forward rates.

• A $15 million increase in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits.

The unfavorable impact of the nonperformance credit spread was $10 million for the three months ended June 30, 2025 compared to a favorable impact of $5 million for the prior year period.

Benefits, claims, losses and settlement expenses decreased $74 million, or 22%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting a $57 million decrease in expense from market impacts on SVA embedded derivative, net of hedging activity.

This decrease was primarily the result of a favorable $842 million change in the market impact on derivatives hedging the SVA embedded derivative and an unfavorable $785 million change in the market impact on SVA embedded derivative.

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

Change in fair value of market risk benefits decreased $120 million for the three months ended June 30, 2025 compared to the prior year period primarily reflecting the following items:

• A $130 million decrease in expense from other market impacts on variable annuity guaranteed benefits, net of hedges.

This decrease was the result of a favorable $474 million change in the market impact on variable annuity guaranteed benefits reserves, partially offset by an unfavorable $344 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 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.

• Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a larger benefit for the three months ended June 30, 2025 compared to the prior year period.

• Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower benefit for the three months ended June 30, 2025 compared to the prior year period.

General and administrative expense decreased $10 million, or 1%, for the three months ended June 30, 2025 compared to the prior year period primarily due to ongoing benefits from our initiatives to enhance operational efficiency and effectiveness and lower severance expenses, partially offset by higher volume related expenses and investments for business growth.

Our effective tax rate was 21.6% for the three months ended June 30, 2025 compared to 21.1% for the prior year period.

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

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

Results of Operations by Segment for the Three Months Ended June 30, 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 March 31,

Three Months Ended June 30,

(in millions)

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Advice & Wealth Management

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

The following table presents Advice & Wealth Management total client assets as of June 30:

(in billions)

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Total client assets increased $111.7 billion, or 11%, to $1.1 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:

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

(in billions)

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

(2) Average 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.

(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 June 30, 2025 and 2024, which is reflective of our billing cycle.

Ending wrap account assets increased $42.4 billion to $615.2 billion during the three months ended June 30, 2025 due to market appreciation of $37.0 billion and net inflows of $5.4 billion.

Average advisory wrap account assets increased $61.5 billion, or 12%, 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:

The following table presents client cash balances as of June 30:

Cash and Certificates Balances

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$ 85.2 $ 81.9

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 Bank is continuing its deposit growth trend, with bank deposit balances increasing 5% from the prior year to $22.5 billion as of June 30, 2025.

Ameriprise Certificate Company (“ACC”) client deposits decreased $2.6 billion from the prior year to $9.9 billion.

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

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

Third party cash products increased $5.9 billion to $47.2 billion driven by an increase of money market funds of $8.6 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:

The following table presents assets supporting Ameriprise Bank deposits and ACC certificates as of June 30:

Ameriprise Bank ACC

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(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.

• In Ameriprise Bank, assets included $20.3 billion of Available-for-Sale securities, $2.5 billion of cash and cash equivalents, and $1.5 billion of other assets, primarily loans.

The Ameriprise Bank investment portfolio securities are mostly rated AAA and primarily consist of structured assets, of which 13% were floating rate and sensitive to changes in short-term interest rates as of June 30, 2025.

We took action to reduce the floating rate allocation from 26% as of June 30, 2024.

The duration of Ameriprise Bank investments was 3.7 years as of June 30, 2025 compared to 3.3 years as of June 30, 2024.

In the three months ended June 30, 2025, we purchased $0.8 billion of investments, which was primarily funded from security maturities and prepayments.

• In ACC, assets include $9.8 billion of Available-for-Sale securities, $0.5 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 21% were 6-month Treasury Bills or short-term Federal Home Loan Bank securities as of June 30, 2025.

The duration of ACC investments was 1.4 years as of June 30, 2025 compared to 0.9 years as of June 30, 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 March 31,

Three Months Ended June 30,

(in millions)

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Adjusted operating earnings $ 812 $ 822 $ (10) (1) %

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.

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, decreased $10 million, or 1%, for the three months ended June 30, 2025 compared to the prior year period.

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

Pretax adjusted operating margin was 28.9% for the three months ended June 30, 2025 compared to 31.1% for the prior year period.

Management and financial advice fees increased $166 million, or 11%, for the three months ended June 30, 2025 compared to the prior year period primarily due to growth in average wrap account assets.

Average advisory wrap account assets increased $61.5 billion, or 12%, 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.

Net investment income, which excludes net realized investment gains or losses, decreased $64 million, or 11%, for the three months ended June 30, 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 $10.3 billion for the three months ended June 30, 2025 compared to $12.8 billion for the prior year period with the average crediting rate of 3.74% for the three months ended June 30, 2025 compared to 4.51% for the prior year period.

• The daily average interest-bearing deposit balance for the Ameriprise Bank increased to $22.4 billion for the three months ended June 30, 2025 compared to $21.4 billion for the prior year period with the average interest rate paid on deposits decreasing to 0.28% for the three months ended June 30, 2025 from 0.44% for the prior year period, which included both cash sweep and savings products.

Distribution expenses increased $143 million, or 10%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting higher advisor compensation from higher average wrap accounts, as well as investments in recruiting experienced advisors.

General and administrative expense increased $26 million, or 6%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting higher volume related expenses and investments for business growth.

AMERIPRISE FINANCIAL, INC.

Asset Management

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

The following tables present the mutual fund performance of our retail Columbia Threadneedle Investments funds as of June 30, 2025:

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

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(2) Columbia funds are available for purchase by U.S.

Out of 89 Columbia funds rated (based on primary share class), 3 received a 5-star Overall Rating and 37 received a 4-star Overall Rating.

Out of 89 Columbia funds rated (based on primary share class), 39 received a 4-star Overall Rating.

Out of 136 Threadneedle funds rated (based on highest-rated share class), 17 received a 5-star Overall Rating and 43 received a 4-star Overall Rating.

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The following table presents global managed assets by type:

As of March 31,

As of June 30,

Change Three Months Ended

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The following table presents the changes in global managed assets:

Three Months Ended March 31,

Three Months Ended June 30,

(in billions)

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(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.

Total segment AUM increased $32.8 billion, or 5%, during the three months ended June 30, 2025 primarily due to market appreciation and a favorable foreign exchange impact, partially offset by net outflows.

Net outflows of $8.7 billion for the three months ended June 30, 2025 included $1.6 billion of outflows from our U.S.

real estate business.

AMERIPRISE FINANCIAL, INC.

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

Three Months Ended March 31,

Three Months Ended June 30,

(in millions)

2 unchanged sentences

Net investment income 14 12 2 17

Other revenues 7 7 — —

Other revenues 4 2 2 NM

Total revenues 830 848 (18) (2)

3 unchanged sentences

Amortization of deferred acquisition costs 1 1 — —

Interest and debt expense 3 2 1 50

Interest and debt expense 3 1 2 NM

General and administrative expense 364 384 (20) (5)

1 unchanged sentence

Adjusted operating earnings $ 222 $ 218 $ 4 2 %

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.

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 $4 million, or 2%, for the three months ended June 30, 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 $17 million, or 2%, for the three months ended June 30, 2025 compared to the prior year period primarily due to the cumulative impact from net outflows, partially offset by higher average equity markets.

General and administrative expense decreased $20 million, or 5%, for the three months ended June 30, 2025 compared to the prior year period reflecting the benefits from our initiatives to enhance operational efficiency and effectiveness.

AMERIPRISE FINANCIAL, INC.

1 unchanged sentence

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

Three Months Ended March 31,

Three Months Ended June 30,

(in millions)

17 unchanged sentences

Adjusted operating earnings $ 214 $ 196 $ 18 9 %

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.

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 9%, for the three months ended June 30, 2025 compared to prior year period primarily reflecting higher investment portfolio yields, market appreciation and favorable life claims.

Variable annuity account balances increased 4% to $87.8 billion as of June 30, 2025 compared to the prior year period primarily due to market appreciation, partially offset by net outflows of $4.1 billion.

Variable annuity sales decreased 9% compared to the prior year period primarily reflecting a very strong level of sales of SVAs in the prior year period.

Account values with living benefit riders declined to 48% as of June 30, 2025 compared to 52% 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.

Net investment income, which excludes net realized investment gains or losses, increased $43 million, or 16%, for the three months ended June 30, 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 $25 million, or 7%, for the three months ended June 30, 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 $17 million, or 8%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting lower sales of life contingent payout annuities and favorable life claims, partially offset by increased volume in SVAs.

Change in fair value of market risk benefits increased $11 million, or 8%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting market appreciation on contractual fees.

AMERIPRISE FINANCIAL, INC.

1 unchanged sentence

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

Three Months Ended March 31,

Three Months Ended June 30,

(in millions)

17 unchanged sentences

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

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

Our Corporate & Other segment pretax adjusted operating loss decreased $20 million for the three months ended June 30, 2025 compared to the prior year period, reflecting higher net investment income and improved general and administrative expenses.

LTC insurance had pretax adjusted operating earnings of $7 million for the three months ended June 30, 2025 compared to pretax adjusted operating earnings of $12 million for the prior year period primarily reflecting a lower level of closed claims and lower investment portfolio yields.

The FA business had a pretax adjusted operating loss of $6 million for the three months ended June 30, 2025 compared to a pretax adjusted operating loss of $8 million for the prior year period.

Fixed deferred annuity account balances declined 9% to $5.4 billion as of June 30, 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, increased $9 million, or 19%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting a benefit in our affordable housing partnerships.

General and administrative expense decreased $12 million, or 13%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting lower severance expenses, partially offset by unfavorable mark-to-market impacts on share-based compensation in the current period compared to a favorable impact in the prior year period.

AMERIPRISE FINANCIAL, INC.

Consolidated Results of Operations for the Six Months Ended June 30, 2025 and 2024

The following table presents our consolidated results of operations:

Six Months Ended June 30,

(in millions)

Management and financial advice fees $ 5,202 $ 4,855 $ 347 7 %

Distribution fees 1,024 1,011 13 1

Net investment income 1,759 1,822 (63) (3)

Premiums, policy and contract charges 721 771 (50) (6)

Other revenues 265 258 7 3

Total revenues 8,971 8,717 254 3

Banking and deposit interest expense 242 351 (109) (31)

Total net revenues 8,729 8,366 363 4

Distribution expenses 3,208 2,869 339 12

Interest credited to fixed accounts 225 317 (92) (29)

Benefits, claims, losses and settlement expenses 638 626 12 2

Remeasurement (gains) losses of future policy benefit reserves (13) (12) (1) (8)

Change in fair value of market risk benefits 487 92 395 NM

Amortization of deferred acquisition costs 121 122 (1) (1)

Interest and debt expense 162 165 (3) (2)

General and administrative expense 1,863 1,917 (54) (3)

Total expenses 6,691 6,096 595 10

Pretax income

2,038 2,270 (232) (10)

Income tax provision 395 451 (56) (12)

Net income $ 1,643 $ 1,819 $ (176) (10) %

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

Pretax income decreased $232 million, or 10%, for the six months ended June 30, 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 $241 million for the six months ended June 30, 2025 compared to a benefit of $80 million for the prior year period.

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

• The favorable impact from the cumulative impact of wrap net inflows.

• 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 12% in the six months ended June 30, 2025 compared to the prior year period.

Management and financial advice fees increased $347 million, or 7%, for the six months ended June 30, 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.

Net investment income decreased $63 million, or 3%, for the six months ended June 30, 2025 compared to the prior year period primarily reflecting lower average invested assets supporting certificates and the unfavorable impact of declining investment portfolio yields, partially offset by the favorable impact of growth in Ameriprise Bank customer deposits and SVA products.

Premiums, policy and contract charges decreased $50 million, or 6%, for the six months ended June 30, 2025 compared to the prior year period due to lower sales of life contingent payout annuities.

Banking and deposit interest expense decreased $109 million, or 31%, for the six months ended June 30, 2025 compared to the prior year period primarily reflecting lower balances and lower average crediting rates on certificates and lower average crediting rates on Ameriprise Bank cash deposits.

AMERIPRISE FINANCIAL, INC.

Distribution expenses increased $339 million, or 12%, for the six months ended June 30, 2025 compared to the prior year period primarily reflecting higher advisor compensation from higher average wrap account assets, as well as continued investments in recruiting experienced advisors.

Interest credited to fixed accounts decreased $92 million, or 29%, for the six months ended June 30, 2025 compared to the prior year period primarily reflecting the following items:

• An $81 million decrease in expense from other market impacts on IUL benefits, net of hedges, which was a benefit of $69 million for the six months ended June 30, 2025 compared to an expense of $12 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 more discounting due to higher forward rates.

• A $6 million decrease in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits.

The unfavorable impact of the nonperformance credit spread was $6 million for the six months ended June 30, 2025 compared to an unfavorable impact of $12 million for the prior year period.

Benefits, claims, losses and settlement expenses increased $12 million, or 2%, for the six months ended June 30, 2025 compared to the prior year period primarily reflecting a $45 million increase in expense from market impacts on SVA embedded derivative, net of hedging activity.

This increase was primarily the result of an unfavorable $420 million change in the market impact on derivatives hedging the SVA embedded derivative and a favorable $375 million change in the market impact on SVA embedded derivative.

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

Change in fair value of market risk benefits increased $395 million for the six months ended June 30, 2025 compared to the prior year period primarily reflecting the following items:

• A $371 million increase in expense from market impacts on variable annuity guaranteed benefits, net of hedges.

This increase was the result of an unfavorable $1.4 billion change in the market impact on variable annuity guaranteed benefits reserves and a favorable $958 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 lower benefit for the six months ended June 30, 2025 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 six months ended June 30, 2025 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 lower expense for the six months ended June 30, 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 six months ended June 30, 2025 compared to the prior year period.

General and administrative expense decreased $54 million, or 3%, for the six months ended June 30, 2025 compared to the prior year period primarily reflecting ongoing benefits from our initiatives to enhance operational efficiency and effectiveness, lower severance expenses, partially offset by higher volume related expenses and investments for business growth ongoing benefits from our initiatives to enhance operational efficiency and effectiveness.

Our effective tax rate was 19.4% for the six months ended June 30, 2025 compared to 19.9% for the prior year period.

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

AMERIPRISE FINANCIAL, INC.

Results of Operations by Segment for the Six Months Ended June 30, 2025 and 2024

The following table presents summary financial information by segment:

Six Months Ended June 30,

(in millions)

Advice & Wealth Management

Net revenues $ 5,589 $ 5,204

Expenses 3,985 3,620

Adjusted operating earnings $ 1,604 $ 1,584

Asset Management

Net revenues $ 1,676 $ 1,703

Expenses 1,213 1,279

Adjusted operating earnings $ 463 $ 424

Retirement & Protection Solutions

Net revenues $ 1,862 $ 1,840

Expenses 1,433 1,445

Adjusted operating earnings $ 429 $ 395

Corporate & Other

Net revenues $ 220 $ 232

Expenses 416 440

Adjusted operating loss $ (196) $ (208)

See our Results of Operations by Segment for the three months ended June 30, 2025 and 2024 for a table of segment pretax adjusted operating impacts on our revenues and expenses attributable to unlocking.

Advice & Wealth Management

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

(in billions)

Beginning balance $ 573.9 $ 488.2

Net flows 14.1 14.0

Market appreciation (depreciation) and other 27.2 32.8

Ending balance $ 615.2 $ 535.0

Advisory wrap account assets ending balance (1)

$ 609.5 $ 529.6

Average advisory wrap account assets (2)

$ 576.6 $ 501.8

(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 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 six months ended June 30, 2025 and 2024, which is reflective of our billing cycle.

Ending wrap account assets increased $41.3 billion, or 7%, to $615.2 billion during the six months ended June 30, 2025 due to market appreciation and other of $27.2 billion and net inflows of $14.1 billion.

Average advisory wrap account assets increased $74.8 billion, or 15%, compared to the prior year period reflecting market appreciation and net inflows.

AMERIPRISE FINANCIAL, INC.

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

Six Months Ended June 30,

(in millions)

Management and financial advice fees $ 3,456 $ 3,080 $ 376 12 %

Distribution fees 1,216 1,206 10 1

Net investment income 996 1,120 (124) (11)

Other revenues 163 149 14 9

Total revenues 5,831 5,555 276 5

Banking and deposit interest expense 242 351 (109) (31)

Total net revenues 5,589 5,204 385 7

Distribution expenses 3,100 2,772 328 12

Interest and debt expense 26 19 7 37

General and administrative expense 859 829 30 4

Total expenses 3,985 3,620 365 10

Adjusted operating earnings $ 1,604 $ 1,584 $ 20 1 %

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $20 million, or 1%, for the six months ended June 30, 2025 compared to the prior year period primarily reflecting market appreciation and increased advisor productivity through the cumulative impact of client net inflows, partially offset by lower investment income.

Pretax adjusted operating margin was 28.7% for the six months ended June 30, 2025 compared to 30.4% for the prior year period.

Management and financial advice fees increased $376 million, or 12%, for the six months ended June 30, 2025 compared to the prior year period primarily due to higher average wrap account assets.

Average advisory wrap account assets increased $74.8 billion, or 15%, compared to the prior year period reflecting market appreciation and net inflows.

Net investment income, which excludes net realized investment gains or losses, decreased $124 million, or 11%, for the six months ended June 30, 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 $10.6 billion for the six months ended June 30, 2025 compared to $13.1 billion for the prior year period with the average crediting rate of 3.85% for the six months ended June 30, 2025 compared to 4.58% for the prior year period.

• The daily average interest-bearing deposit balance for the Ameriprise Bank increased to $22.3 billion for the six months ended June 30, 2025 compared to $21.3 billion for the prior year period with the average interest rate paid on deposits decreasing to 0.30% for the six months ended June 30, 2025 from 0.43% for the prior year period, which included both cash sweep and savings products.

Distribution expenses increased $328 million, or 12%, for the six months ended June 30, 2025 compared to the prior year period reflecting higher advisor compensation from higher average wrap account assets, as well as continued investments in recruiting experienced advisors.

General and administrative expense increased $30 million, or 4%, for the six months ended June 30, 2025 compared to the prior year period primarily due to higher volume related expenses and investments for business growth.

AMERIPRISE FINANCIAL, INC.

Asset Management

The following table presents global managed assets by type:

As of June 30,

Change Six Months Ended

(in billions)

Equity $ 351.2 $ 340.2 $ 11.0 3 % $ 339.0 $ 332.2 $ 6.8 2 %

Fixed income 232.8 226.6 6.2 3 231.5 231.5 — —

Money market 22.3 22.8 (0.5) (2) 20.6 22.6 (2.0) (9)

Alternative 28.5 33.2 (4.7) (14) 29.3 33.1 (3.8) (11)

Hybrid and other 19.4 19.1 0.3 2 19.2 18.6 0.6 3

Total managed assets $ 654.2 $ 641.9 $ 12.3 2 % $ 639.6 $ 638.0 $ 1.6 — %

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

The following table presents the changes in global managed assets:

Six Months Ended June 30,

(in billions)

Global Retail Funds

Beginning managed assets

$ 352.7 $ 334.9

Inflows 28.7 26.6

Outflows (38.2) (35.0)

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

Net new flows

(12.7) (11.6)

Reinvested dividends 3.2 2.8

Net flows (9.5) (8.8)

Distributions (3.5) (3.3)

Market appreciation (depreciation) and other 15.5 25.3

Foreign currency translation (1)

Total ending managed assets

Global Institutional

Beginning managed assets

(37.6) (28.5)

Market appreciation (depreciation) and other (3)

Foreign currency translation (1)

Total ending managed assets

Total managed assets 654.2 641.9

Total assets under advisement (4)

Total assets under management and advisement

$ 689.7 $ 673.9

Total assets under management net flows

$ (27.4) $ (17.7)

Model delivery assets under advisement flows (5)

Total assets under management and advisement flows (5)

$ (27.0) $ (16.6)

Legacy insurance partners net flows (6)

$ (1.8) $ (9.9)

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

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

AMERIPRISE FINANCIAL, INC.

(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) 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 increased $9.3 billion, or 1%, during the six months ended June 30, 2025 primarily due to equity market appreciation and a favorable foreign exchange impact, partially offset by net outflows.

Net outflows were $27.4 billion for the six months ended June 30, 2025 and included a large institutional client repositioning into passive strategies and $3.9 billion of outflows from our U.S.

real estate business.

Model delivery assets under advisement net inflows were $0.4 billion for the six months ended June 30, 2025 compared to $1.1 billion for the prior year period.

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

Six Months Ended June 30,

(in millions)

Management and financial advice fees $ 1,461 $ 1,480 $ (19) (1) %

Distribution fees 185 191 (6) (3)

Net investment income 19 23 (4) (17)

Other revenues 11 9 2 22

Total revenues 1,676 1,703 (27) (2)

Banking and deposit interest expense — — — —

Total net revenues 1,676 1,703 (27) (2)

Distribution expenses 486 486 — —

Amortization of deferred acquisition costs 3 3 — —

Interest and debt expense 6 3 3 NM

General and administrative expense 718 787 (69) (9)

Total expenses 1,213 1,279 (66) (5)

Adjusted operating earnings $ 463 $ 424 $ 39 9 %

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 $39 million, or 9%, for the six months ended June 30, 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 $19 million, or 1%, for the six months ended June 30, 2025 compared to the prior year period primarily due to the cumulative impact from net outflows, partially offset by equity market appreciation.

General and administrative expense decreased $69 million, or 9%, for the six months ended June 30, 2025 compared to the prior year period primarily reflecting the initial 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.

Retirement & Protection Solutions

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

Six Months Ended June 30,

(in millions)

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

Distribution fees 203 208 (5) (2)

Net investment income 605 509 96 19

Premiums, policy and contract charges 683 741 (58) (8)

Other revenues 3 4 (1) (25)

Total revenues 1,862 1,840 22 1

Banking and deposit interest expense — — — —

Total net revenues 1,862 1,840 22 1

Distribution expenses 249 253 (4) (2)

Interest credited to fixed accounts 185 184 1 1

Benefits, claims, losses and settlement expenses 420 450 (30) (7)

Remeasurement (gains) losses of future policy benefit reserves (10) (7) (3) (43)

Change in fair value of market risk benefits 296 271 25 9

Amortization of deferred acquisition costs 115 114 1 1

Interest and debt expense 19 24 (5) (21)

General and administrative expense 159 156 3 2

Total expenses 1,433 1,445 (12) (1)

Adjusted operating earnings $ 429 $ 395 $ 34 9 %

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 $34 million, or 9%, for the six months ended June 30, 2025 compared to the prior year period, primarily reflecting higher investment portfolio yields, market appreciation and favorable life claims.

Management and financial advice fees decreased $10 million, or 3%, for the six months ended June 30, 2025 compared to the prior year period primarily due to market appreciation, partially offset by the impact from variable annuity net outflows.

Net investment income, which excludes net realized investment gains or losses, increased $96 million, or 19%, for the six months ended June 30, 2025 compared to the prior year period primarily due to increased SVA balances and higher investment portfolio yields from investment portfolio repositioning.

Premiums, policy and contract charges decreased $58 million, or 8%, for the six months ended June 30, 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 $30 million, or 7%, for the six months ended June 30, 2025 compared to the prior year period primarily reflecting the impact of lower sales of life contingent payout annuities and favorable life claims, partially offset by increased volume in SVAs.

Change in fair value of market risk benefits, which exclude the market impact on variable annuity guaranteed benefits (net of hedges), increased $25 million, or 9%, for the six months ended June 30, 2025 compared to the prior year period reflecting market appreciation on contractual fees.

AMERIPRISE FINANCIAL, INC.

Corporate & Other

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

Six Months Ended June 30,

(in millions)

Net investment income $ 103 $ 105 $ (2) (2) %

Premiums, policy and contract charges 45 46 (1) (2)

Other revenues 88 96 (8) (8)

Total revenues 236 247 (11) (4)

Banking and deposit interest expense 16 15 1 7

Total net revenues 220 232 (12) (5)

Distribution expenses (5) (4) (1) (25)

Interest credited to fixed accounts 102 109 (7) (6)

Benefits, claims, losses and settlement expenses 109 110 (1) (1)

Remeasurement (gains) losses of future policy benefit reserves (3) (5) 2 40

Amortization of deferred acquisition costs 3 5 (2) (40)

Interest and debt expense 54 51 3 6

General and administrative expense 156 174 (18) (10)

Total expenses 416 440 (24) (5)

Adjusted operating loss $ (196) $ (208) $ 12 6 %

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 decreased $12 million, or 6%, for the six months ended June 30, 2025 compared to the prior year period.

LTC insurance had pretax adjusted operating earnings of $21 million for the six months ended June 30, 2025 compared to pretax adjusted operating earnings of $28 million for the prior year period primarily reflecting a lower level of closed claims and lower investment portfolio yields.

The FA business had a pretax adjusted operating loss of $14 million for the six months ended June 30, 2025 compared to a pretax adjusted operating loss of $14 million for the prior year period.

Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, integration and restructuring charges, and the impact of consolidating CIEs, decreased $2 million, or 2%, for the six months ended June 30, 2025 compared to the prior year period primarily reflecting lower investment portfolio yields, partially offset by a benefit in our affordable housing partnerships.

Other revenues decreased $8 million, or 8%, for the six months ended June 30, 2025 compared to the prior year period primarily reflecting the yield on deposit receivables arising from reinsurance transactions.

General and administrative expense, which excludes integration and restructuring charges, decreased $18 million, or 10%, for the six months ended June 30, 2025 compared to the prior year period primarily reflecting lower severance expenses associated with our initiatives to enhance operational efficiency.

Fair Value Measurements

15 unchanged sentences

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

Treasury curve as of March 31, 2025.

Treasury curve as of June 30, 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 $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.

Treasury curve, the reduction to future total equity would be approximately $493 million, net of the reinsurance accrual and income taxes (calculated at the statutory tax rate of 21%), based on June 30, 2025 credit spreads.

Liquidity and Capital Resources

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.

We maintained substantial liquidity during the six months ended June 30, 2025.

As of June 30, 2025 and December 31, 2024, we had $8.0 billion and $8.1 billion, respectively, in cash and cash equivalents excluding CIEs and other restricted cash on a consolidated basis.

As of June 30, 2025 and December 31, 2024, the parent company had $878 million and $856 million, respectively, in cash, cash equivalents, and unencumbered liquid securities.

Liquid securities predominantly include U.S.

1 unchanged sentence

Additional sources of liquidity at the parent company include a line of credit with an affiliate up to $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.

Management’s estimate of liquidity available to the parent company in a volatile and uncertain economic environment as of June 30, 2025 was $2.1 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 March 31, 2025, we had no outstanding borrowings under this credit facility and had $1 million of letters of credit issued against the facility.

At June 30, 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 March 31, 2025.

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

As of June 30, 2025 and December 31, 2024, we had $10.7 billion and $8.5 billion, respectively, of estimated borrowing capacity under the FHLB facilities, of which $201 million was outstanding as of both June 30, 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 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.

As of June 30, 2025 and December 31, 2024, we estimated $10.4 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.

7 unchanged sentences

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.

however, as of June 30, 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.

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

As of June 30, 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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Actual Capital Regulatory Capital Requirements

March 31, 2025

June 30, 2025

December 31, 2024

March 31, 2025

June 30, 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 March 31, 2025 and December 31, 2024.

(2) Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of June 30, 2025 and December 31, 2024.

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

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

During the three months ended March 31, 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.

During the six months ended June 30, 2025, the parent holding company received cash dividends or a return of capital from its subsidiaries of $1.9 billion (including $400 million from RiverSource Life and $850 million from AMPF Holding, LLC) and contributed cash to its subsidiaries of $150 million.

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

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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Dividends Paid to Shareholders and Share Repurchases

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.

We paid regular quarterly dividends to our shareholders totaling $306 million and $294 million for the six months ended June 30, 2025 and 2024, respectively.

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

The dividend will be paid on August 18, 2025 to our shareholders of record at the close of business on August 4, 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 March 31, 2025, we had $271 million remaining under this share repurchase authorization.

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, which was exhausted during the second quarter of 2025.

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.

As of June 30, 2025, we had $4.2 billion remaining under this share repurchase authorization.

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

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

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

During the six months ended June 30, 2025, we repurchased a total of 2.3 million shares of our common stock at an average price of $511.39 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 $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.

Net cash provided by operating activities increased $286 million to $3.5 billion for the six months ended June 30, 2025 compared to $3.2 billion for the prior year period primarily reflecting earnings from our fee based business operations.

Investing Activities

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

Net cash used in investing activities 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.

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

Net cash used in investing activities increased $536 million to $939 million for the six months ended June 30, 2025 compared to $403 million for the prior year period driven by a $3.0 billion increase in purchases of Available-for-Sale securities, partially offset by a $1.5 billion increase in proceeds from sales of Available-for-Sale securities and a $1.3 billion increase in proceeds from maturities, sinking fund payments and calls of Available-for-Sale securities.

Financing Activities

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.

Net cash used in financing activities decreased $106 million to $2.4 billion for the six months ended June 30, 2025 compared to $2.5 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 during the first quarter and a $501 million increase in repayments of long-term debt during the second quarter.

Forward-Looking Statements

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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