The following discussion and analysis of our consolidated results of operations and financial condition should be read in conjunction with the “Forward-Looking Statements” that follow and our Consolidated Financial Statements and Notes presented in Item 1. Our Management’s Discussion and Analysis should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on February 25, 2022 (“2021 10-K”), as well as our current reports on Form 8-K and other publicly available information. References below to “Ameriprise Financial,” “Ameriprise,” the “Company,” “we,” “us,” and “our” refer to Ameriprise Financial, Inc. exclusively, to our entire family of companies, or to one or more of our subsidiaries.

Overview

Ameriprise Financial is a diversified financial services company with a more than 125-year history of providing financial solutions. We are a long-standing leader in financial planning and advice with $1.1 trillion in assets under management and administration as of September 30, 2022. We offer a broad range of products and services designed to achieve individual and institutional clients’ financial objectives.

The products and services we provide retail clients and, to a lesser extent, institutional clients, are the primary source of our revenues and net income. Revenues and net income are significantly affected by investment performance and the total value and composition of assets we manage and administer for our retail and institutional clients as well as the distribution fees we receive from other companies. These factors, in turn, are largely determined by overall investment market performance and the depth and breadth of our individual client relationships.

We operate our business in the broader context of the macroeconomic forces around us, including the global and U.S. economies, the coronavirus disease 2019 (“COVID-19”) pandemic, 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. In addition, the business, political and regulatory environments in which we operate are subject to elevated uncertainty and substantial, frequent change. Accordingly, we expect to continue focusing on our key strategic objectives and obtaining operational and strategic leverage from our core capabilities. The success of these and other strategies may be affected by the factors discussed in Item 1A, “Risk Factors” in our 2021 10-K and other factors as discussed herein.

Equity price, credit market and interest rate fluctuations can have a significant impact on our results of operations, primarily due to the effects they have on the asset management and other asset-based fees we earn, the value of deferred acquisition costs (“DAC”) and deferred sales inducement costs (“DSIC”) assets, the values of liabilities for guaranteed benefits associated with our variable annuities and the values of derivatives held to hedge these benefits and the “spread” income generated on our deposit products, fixed insurance, the fixed portion of variable annuities and variable insurance contracts and fixed deferred annuities. We have been operating in a historically low interest rate environment but have recently experienced a substantial increase in rates with uncertainty about where rates will go in the future. A higher (lower) interest rate environment may result in decreases (increases) to our reserves and changes in various rate assumptions we use to amortize DAC and DSIC, which may impact our adjusted operating earnings after tax. For additional discussion on our interest rate risk, see Item 3. “Quantitative and Qualitative Disclosures About Market Risk” and the information set forth in this Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Market Risk.”

In the third quarter, we updated our market-related assumptions and implemented model changes related to our living benefit valuation. In addition, we conducted our annual review of life insurance and annuity valuation assumptions relative to current experience and management expectations including modeling changes. These aforementioned changes are collectively referred to as unlocking. We also reviewed our future policy benefit reserve adequacy for our long term care (“LTC”) business in the third quarter. See our Consolidated and Segment Results of Operations sections for the pretax impacts on our revenues and expenses attributable to unlocking and LTC loss recognition.

On June 2, 2021, we filed an application to convert Ameriprise Bank, FSB to a state-chartered industrial bank regulated by the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation. We also filed an application to transition the FSB’s personal trust services business to a new limited purpose national trust bank regulated by the Office of the Comptroller of the Currency. If the applications are approved, the proposed changes are not expected to impact our long-term strategy for the bank and should enable us to continue our strong lineup of banking solutions, including deposits, credit cards, mortgages and securities-based lending to our wealth management clients without interruption.

We consolidate certain variable interest entities for which we provide asset management services. These entities are defined as consolidated investment entities (“CIEs”). While the consolidation of the CIEs impacts our balance sheet and income statement, our exposure to these entities is unchanged and there is no impact to the underlying business results. For further information on CIEs, see Note 4 to our Consolidated Financial Statements. The results of operations of the CIEs are reflected in the Corporate & Other

AMERIPRISE FINANCIAL, INC.

segment. On a consolidated basis, the management fees we earn for the services we provide to the CIEs and the related general and administrative expenses are eliminated and the changes in the fair value of assets and liabilities related to the CIEs, primarily syndicated loans and debt, are reflected in net investment income. We include the fees from these entities in the management and financial advice fees line within our Asset Management segment.

While our consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), management believes that adjusted operating measures, which exclude net realized investment gains or losses, net of the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and universal life (“UL”) insurance contracts, net of hedges and the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; mean reversion related impacts (the impact on variable annuity and variable universal life (“VUL”) products for the difference between assumed and updated separate account investment performance on DAC, DSIC, unearned revenue amortization, reinsurance accrual and additional insurance benefit reserves); 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; gain or loss on disposal of a business that is not considered discontinued operations; integration and restructuring charges; income (loss) from discontinued operations; and the impact of consolidating CIEs, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis. Management uses these non-GAAP measures to evaluate our financial performance on a basis comparable to that used by some securities analysts and investors. Also, certain of these non-GAAP measures are taken into consideration, to varying degrees, for purposes of business planning and analysis and for certain compensation-related matters. Throughout our Management’s Discussion and Analysis, these non-GAAP measures are referred to as adjusted operating measures. These non-GAAP measures should not be viewed as a substitute for U.S. GAAP measures.

It is management’s priority to increase shareholder value over a multi-year horizon by achieving our on-average, over-time financial targets.

Our financial targets are:

• Adjusted operating earnings per diluted share growth of 12% to 15%, and

• Adjusted operating return on equity excluding accumulated other comprehensive income (“AOCI”) of over 30%.

AMERIPRISE FINANCIAL, INC.

The following tables reconcile our GAAP measures to adjusted operating measures:

															Per Diluted Share
			Three Months Ended September 30,												Three Months Ended September 30,
			2022						2021			2022						2021
			(in millions, except per share amounts)
Net income (loss)			$	548					$	1,031					$	4.86					$	8.65
Less: Net realized investment gains (losses) (1)			(92)						12						(0.82)						0.10
Add: Market impact on non-traditional long-duration products (1)			(132)						94						(1.18)						0.79
Add: Mean reversion related impacts (1)			79						(9)						0.70						(0.08)
Add: Market impact of hedges on investments (1)			—						23						—						0.19
Less: Block transfer reinsurance transaction impacts (1)			—						521						—						4.37
Add: Integration/restructuring charges (1)			11						7						0.10						0.06
Less: Net income (loss) attributable to CIEs			(3)						2						(0.03)						0.02
Tax effect of adjustments (2)			(10)						88						(0.09)						0.74
Adjusted operating earnings			$	591					$	699					$	5.24					$	5.86
Weighted average common shares outstanding:
Basic			110.5						116.4
Diluted			112.7						119.2

															Per Diluted Share
			Nine Months Ended September 30,												Nine Months Ended September 30,
			2022						2021			2022						2021
			(in millions, except per share amounts)
Net income (loss)			$	2,065					$	2,059					$	18.05					$	17.03
Less: Net realized investment gains (losses) (1)			(90)						78						(0.79)						0.65
Add: Market impact on non-traditional long-duration products (1)			(571)						577						(5.00)						4.78
Add: Mean reversion related impacts (1)			299						(107)						2.61						(0.89)
Add: Market impact of hedges on investments (1)			—						40						—						0.33
Less: Block transfer reinsurance transaction impacts (1)			—						521						—						4.31
Add: Integration/restructuring charges (1)			35						14						0.31						0.12
Less: Net income (loss) attributable to CIEs			(2)						(1)						(0.02)						(0.01)
Tax effect of adjustments (2)			31						16						0.27						0.13
Adjusted operating earnings			$	1,951					$	2,001					$	17.05					$	16.55
Weighted average common shares outstanding:
Basic			112.1						118.2
Diluted			114.4						120.9

(1) Pretax adjusted operating adjustments.

(2) Calculated using the statutory federal tax rate of 21%.

AMERIPRISE FINANCIAL, INC.

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,
2022						2021
(in millions)
Net income			$	2,766					$	2,236
Less: Adjustments (1)			92						(324)
Adjusted operating earnings			2,674						2,560
Total Ameriprise Financial, Inc. shareholders’ equity			4,793						5,766
Less: AOCI, net of tax			(1,076)						404
Total Ameriprise Financial, Inc. shareholders’ equity, excluding AOCI			5,869						5,362
Less: Equity impacts attributable to CIEs			1						3
Adjusted operating equity			$	5,868					$	5,359

Return on equity, excluding AOCI			47.1		%				41.7		%
Adjusted operating return on equity, excluding AOCI (2)			45.6		%				47.8		%

(1) Adjustments reflect the sum of after-tax net realized investment gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; mean reversion related impacts; 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; gain or loss on disposal of a business that is not considered discontinued operations; integration and restructuring charges; income (loss) from discontinued operations; and net income (loss) from consolidated investment entities. After-tax is calculated using the statutory tax rate of 21%.

(2) Adjusted operating return on equity, excluding AOCI is calculated using adjusted operating earnings in the numerator, and Ameriprise Financial shareholders’ equity, excluding AOCI and the impact of consolidating investment entities using a five-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory tax rate of 21%.

Critical Accounting Estimates

The accounting and reporting policies that we use affect our Consolidated Financial Statements. Certain of our accounting and reporting policies are critical to an understanding of our consolidated results of operations and financial condition and, in some cases, the application of these policies can be significantly affected by the estimates, judgments and assumptions made by management during the preparation of our Consolidated Financial Statements. These accounting policies are discussed in detail in “Management’s Discussion and Analysis — Critical Accounting Estimates” in our 2021 10-K.

Recent Accounting Pronouncements

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.

Economic Environment

Global equity market conditions could materially affect our results of operations and financial condition. The following table presents relevant market indices:

			Three months ended September 30,																		Nine Months Ended September 30,
2022						2021			Change						2022						2021			Change
S&P 500
Daily average			3,983						4,425						(10)%						4,185						4,158						1%
Period end			3,586						4,308						(17)%						3,586						4,308						(17)%
Weighted Equity Index (“WEI”) (1)
Daily average			2,606						2,983						(13)%						2,754						2,836						(3)%
Period end			2,347						2,909						(19)%						2,347						2,909						(19)%

(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. 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 2021 10-K.

AMERIPRISE FINANCIAL, INC.

Assets Under Management and Administration

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. These assets include those held in clients’ brokerage accounts. We generally record revenues received from administered assets as distribution fees. We do not exercise management discretion over these assets and do not earn a management fee. 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,												Change
2022						2021
(in billions)
Assets Under Management and Administration
Advice & Wealth Management AUM			$	382.4					$	431.8					$	(49.4)					(11)		%
Asset Management AUM			546.5						583.4						(36.9)						(6)
Corporate AUM			0.2						0.1						0.1						NM
Eliminations			(35.6)						(42.0)						6.4						15
Total Assets Under Management			893.5						973.3						(79.8)						(8)
Total Assets Under Administration			208.0						233.0						(25.0)						(11)
Total AUM and AUA			$	1,101.5					$	1,206.3					$	(104.8)					(9)		%
NM Not Meaningful.

Total AUM decreased $79.8 billion, or 8%, to $893.5 billion as of September 30, 2022 compared to $973.3 billion as of September 30, 2021 due to a $49.4 billion decrease in Advice & Wealth Management AUM driven by equity market depreciation, partially offset by wrap account net inflows, and a $36.9 billion decrease in Asset Management AUM driven by equity and bond market depreciation and an unfavorable foreign currency translation, partially offset by the acquisition of the BMO Global Asset Management (EMEA) business. 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, 2022 and 2021

The following table presents our consolidated results of operations:

			Three Months Ended September 30,												Change
			2022						2021
			(in millions)
Revenues
Management and financial advice fees			$	2,172					$	2,367					$	(195)					(8)		%
Distribution fees			506						458						48						10
Net investment income			349						773						(424)						(55)
Premiums, policy and contract charges			361						(805)						1,166						NM
Other revenues			118						113						5						4
Total revenues			3,506						2,906						600						21
Banking and deposit interest expense			15						3						12						NM
Total net revenues			3,491						2,903						588						20
Expenses
Distribution expenses			1,195						1,285						(90)						(7)
Interest credited to fixed accounts			157						172						(15)						(9)
Benefits, claims, losses and settlement expenses			370						(719)						1,089						NM
Amortization of deferred acquisition costs			107						9						98						NM
Interest and debt expense			52						64						(12)						(19)
General and administrative expense			925						822						103						13
Total expenses			2,806						1,633						1,173						72
Pretax income			685						1,270						(585)						(46)
Income tax provision			137						239						(102)						(43)
Net income			$	548					$	1,031					$	(483)					(47)		%
NM Not Meaningful.

Overall

Pretax income decreased $585 million, or 46%, for the three months ended September 30, 2022 compared to the prior year period. The following impacts were significant drivers of the period-over-period change in pretax income:

• The prior year impact of the block transfer reinsurance transaction resulted in $521 million of pretax income for the three months ended September 30, 2021 primarily reflecting the net realized gains on the investments sold to the reinsurer.

• The unfavorable impact of unlocking was $161 million for the three months ended September 30, 2022 compared to a favorable impact of $17 million for the prior year period.

• An unfavorable impact from lower average equity markets for the three months ended September 30, 2022 compared to the prior year period.

• Net realized investment losses of $87 million for the three months ended September 30, 2022 compared to net realized gains of $12 million for the prior year period primarily due to the repositioning of a portion of our fixed maturity bond portfolio in response to recent market conditions.

• The mean reversion related impact was an expense of $79 million for the three months ended September 30, 2022 compared to a benefit of $9 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 related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual was a benefit of $132 million for the three months ended September 30, 2022 compared to an expense of $94 million for the prior year period.

• A favorable impact from the continued increase in short-term interest rates.

AMERIPRISE FINANCIAL, INC.

The following table presents the total pretax impacts on our revenues and expenses attributable to unlocking for the three months ended September 30:

Pretax Increase (Decrease)						2022						2021
						(in millions)
Distribution fees						$	—					$	2
Premiums, policy and contract charges						1						17
Total revenues						1						19
Benefits, claims, losses and settlement expenses:
LTC unlocking						—						3
Unlocking impact, excluding LTC						170						59
Total benefits, claims, losses and settlement expenses						170						62
Amortization of DAC						(8)						(60)
Total expenses						162						2
Pretax income (1)						$	(161)					$	17

(1) Includes an $8 million net benefit and $25 million net benefit related to the market impact on variable annuity guaranteed benefits for the three months ended September 30, 2022 and 2021, respectively, 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 and LTC loss recognition.

The primary drivers of the year-over-year unlocking impact excluding LTC include the following items:

• Mortality assumption on variable annuities with living benefit guarantees resulted in a higher expense in the third quarter of 2022 compared to the prior year period.

• Equity market volatility and correlation assumptions on variable annuities resulted in an unfavorable impact in the third quarter of 2022 compared to a favorable impact in the prior year period.

Net Revenues

Management and financial advice fees decreased $195 million, or 8%, for the three months ended September 30, 2022 compared to the prior year period reflecting lower average equity markets and an unfavorable foreign exchange impact, partially offset by revenue associated with the acquisition of the BMO Global Asset Management (EMEA) business and continued wrap account net inflows.

Distribution fees increased $48 million, or 10%, for the three months ended September 30, 2022 compared to the prior year period due to higher fees on off-balance sheet brokerage cash due to an increase in short-term interest rates, partially offset by lower average equity markets and continued decreasing transactional activity.

Net investment income decreased $424 million, or 55%, for the three months ended September 30, 2022 compared to the prior year period primarily reflecting the following items:

• Net realized investment losses of $87 million for the three months ended September 30, 2022 compared to net realized investment gains of $546 million for the prior year period. Net realized investment losses for three months ended September 30, 2022 were primarily driven by impairments on securities we intend to sell as we repositioned a portion of our fixed maturity bond portfolio in response to recent market conditions and credit losses on corporate debt securities. Net realized investment gains for the three months ended September 30, 2021 included net realized gains of $502 million on Available-for-Sale securities and a $42 million net gain related to commercial mortgage loans primarily due to the sale of securities and loans to the reinsurer as a result of the fixed deferred and immediate annuity reinsurance transaction that closed in the third quarter 2021.

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

• The favorable impact of higher average invested assets.

Premiums, policy and contract charges increased $1.2 billion for the three months ended September 30, 2022 compared to the prior year period primarily reflecting ceded premiums of $1.2 billion associated with the reinsurance transaction for the life contingent immediate annuity policies in the year ago period.

Expenses

Distribution expenses decreased $90 million, or 7%, for the three months ended September 30, 2022 compared to the prior year period primarily due to lower average equity markets and decreased transactional activity.

Interest credited to fixed accounts decreased $15 million, or 9%, for the three months ended September 30, 2022 compared to the prior year period primarily reflecting the following items:

• A $4 million increase 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 three months ended September 30, 2022 compared to an unfavorable impact of $2 million for the prior year period.

AMERIPRISE FINANCIAL, INC.

• A $13 million decrease in expense from other market impacts on IUL benefits, net of hedges, which was a benefit of $6 million for the three months ended September 30, 2022 compared to an expense of $7 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 lower option costs due to a higher discount rate.

Benefits, claims, losses and settlement expenses increased $1.1 billion for the three months ended September 30, 2022 compared to the prior year period primarily reflecting the following items:

• A $1.2 billion decrease in expense associated with the reinsurance transaction for life contingent immediate annuity policies in the prior year period.

• A $62 million increase in expense primarily reflecting the impact of year-over-year changes in the unhedged nonperformance credit spread risk adjustment on variable annuity guaranteed benefits.

• A $298 million decrease in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks and the related DSIC amortization. This decrease was the result of a favorable $339 million change in the market impact on variable annuity guaranteed living benefits reserves, partially offset by an unfavorable $41 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 living benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the three months ended September 30, 2022 compared to an expense for the prior year period.

• Interest rate impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in an expense for the three months ended September 30, 2022 compared to a benefit for the prior year period.

• Volatility impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in an expense for the three months ended September 30, 2022 compared to a benefit for the prior year period.

• Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and various behavioral items, were a net benefit for the three months ended September 30, 2022 compared to a net expense for the prior year period.

• The impact of unlocking excluding LTC was an expense of $170 million for the three months ended September 30, 2022 compared to an expense of $59 million for the prior year period.

• The annual review of LTC future policy benefit reserve in the third quarter of 2022 resulted in unlocking of nil compared to unlocking of $3 million in the prior year period.

• The mean reversion related impact was an expense of $50 million for the three months ended September 30, 2022 compared to a benefit of $6 million for the prior year period.

Amortization of DAC increased $98 million, for the three months ended September 30, 2022 compared to the prior year period primarily reflecting the following items:

• The impact of unlocking in the third quarter of 2022 was a benefit of $8 million compared to a benefit of $60 million in the prior year period.

• The DAC offset to the market impact on non-traditional long-duration products was an expense of $37 million for the three months ended September 30, 2022 compared to a benefit of $2 million for the prior year period.

• The mean reversion related impact was an expense of $29 million for the three months ended September 30, 2022 compared to a benefit of $3 million for the prior year period.

• A decrease in amortization reflecting lower than expected client exit rates.

Interest and debt expense decreased $12 million, or 19%, for the three months ended September 30, 2022 compared to the prior year period primarily due to a decrease in interest expense of CIEs.

General and administrative expense increased $103 million, or 13%, for the three months ended September 30, 2022 compared to the prior year period primarily reflecting the operating expenses of the acquired BMO Global Asset Management (EMEA) business, partially offset by a favorable foreign exchange impact on expenses.

Income Taxes

Our effective tax rate was 20.0% for the three months ended September 30, 2022 compared to 18.8% for the prior year period. The higher effective tax rate for the three months ended September 30, 2022 compared to the three months ended September 30, 2021 was primarily the result of an increase in state taxes, net of federal benefit. See Note 15 to our Consolidated Financial Statements for additional discussion on income taxes.

AMERIPRISE FINANCIAL, INC.

Results of Operations by Segment for the Three Months Ended September 30, 2022 and 2021

Adjusted operating earnings is the measure of segment profit or loss management uses to evaluate segment performance. Adjusted operating earnings should not be viewed as a substitute for GAAP pretax income. We believe the presentation of segment adjusted operating earnings as we measure it for management purposes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitating a more meaningful trend analysis. See Note 18 to the Consolidated Financial Statements for further information on the presentation of segment results and our definition of adjusted operating earnings.

The following table presents summary financial information by segment:

			Three Months Ended September 30,
2022						2021
(in millions)
Advice & Wealth Management
Net revenues			$	2,137					$	2,048
Expenses			1,542						1,589
Adjusted operating earnings			$	595					$	459
Asset Management
Net revenues			$	823					$	915
Expenses			632						630
Adjusted operating earnings			$	191					$	285
Retirement & Protection Solutions
Net revenues			$	786					$	834
Expenses			755						647
Adjusted operating earnings			$	31					$	187
Corporate & Other
Net revenues			$	115					$	113
Expenses			194						194
Adjusted operating loss			$	(79)					$	(81)

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

Segment Pretax Operating Increase (Decrease)						2022												2021
Retirement & Protection Solutions						Corporate			Retirement & Protection Solutions						Corporate
						(in millions)
Distribution fees						$	—					$	—					$	2					$	—
Premiums, policy and contract charges						3						(2)						17						—
Total revenues						3						(2)						19						—
Benefits, claims, losses and settlement expenses
LTC unlocking and loss recognition						—						—						—						3
Unlocking impact, excluding LTC						180						(1)						89						—
Total benefits, claims, losses and settlement expenses						180						(1)						89						3
Amortization of DAC						(5)						(4)						(65)						—
Total expenses						175						(5)						24						3
Pretax income						$	(172)					$	3					$	(5)					$	(3)

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:

			2022						2021
(in billions)
Beginning balance			$	399.3					$	430.0
Net flows			6.4						9.4
Market appreciation (depreciation) and other			(20.5)						(4.0)
Ending balance			$	385.2					$	435.4
Advisory wrap account assets ending balance (1)			$	381.1					$	430.5
Average advisory wrap account assets (2)			$	407.8					$	432.9

(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 three months ended September 30, 2022 and 2021.

Ending wrap account assets decreased $14.1 billion, or 4%, to $385.2 billion during the three months ended September 30, 2022 due to market depreciation of $20.5 billion, partially offset by net inflows of $6.4 billion. Average advisory wrap account assets decreased $25.1 billion, or 6%, compared to the prior year period primarily reflecting market depreciation, partially offset by net inflows.

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

			Three Months Ended September 30,												Change
			2022						2021
			(in millions)
Revenues
Management and financial advice fees			$	1,297					$	1,374					$	(77)					(6)		%
Distribution fees			579						561						18						3
Net investment income			219						62						157						NM
Other revenues			57						54						3						6
Total revenues			2,152						2,051						101						5
Banking and deposit interest expense			15						3						12						NM
Total net revenues			2,137						2,048						89						4
Expenses
Distribution expenses			1,149						1,238						(89)						(7)
Interest and debt expense			3						3						—						—
General and administrative expense			390						348						42						12
Total expenses			1,542						1,589						(47)						(3)
Adjusted operating earnings			$	595					$	459					$	136					30		%
NM Not Meaningful.

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $136 million, or 30%, for the three months ended September 30, 2022 compared to the prior year period primarily reflecting the benefit from higher short-term interest rates and wrap account net inflows, partially offset by market depreciation. Pretax adjusted operating margin increased to 27.8% for the three months ended September 30, 2022 compared to 22.4% for the prior year period, reflecting the benefit of higher short-term interest rates. Client brokerage cash balances increased to $46.3 billion given the market volatility.

Ameriprise Bank, FSB is continuing its deposit growth trend, with cash sweep balances increasing $8.8 billion from the prior year period to $18.6 billion and brokerage client pledged asset lines of credit increasing $204 million from the prior year period to $612 million as of September 30, 2022. Profitability at the bank increased compared to the prior year period reflecting trend in deposit growth and increased interest rates.

Net Revenues

Management and financial advice fees decreased $77 million, or 6%, for the three months ended September 30, 2022 compared to the prior year period primarily due to the decrease in average wrap account assets. Average advisory wrap account assets decreased $25.1 billion, or 6%, compared to the prior year period reflecting market depreciation, partially offset by net inflows.

AMERIPRISE FINANCIAL, INC.

Distribution fees increased $18 million, or 3%, for the three months ended September 30, 2022 compared to the prior year period reflecting $95 million of higher fees on off-balance sheet brokerage cash primarily due to an increase in short-term interest rates, partially offset by continued decreasing transactional activity.

Net investment income, which excludes net realized investment gains or losses, increased $157 million for the three months ended September 30, 2022 compared to the prior year period primarily due to higher average invested assets due to increased bank deposits and the favorable impact of increasing short-term interest rates, including higher investment yields on the investment portfolio supporting the bank and certificate products.

Banking and deposit interest expense increased $12 million for the three months ended September 30, 2022 compared to the prior year period primarily due to increased average crediting rates on certificates.

Expenses

Distribution expenses decreased $89 million, or 7%, for the three months ended September 30, 2022 compared to the prior year period reflecting market depreciation and decreased transactional activity.

General and administrative expense increased $42 million, or 12%, for the three months ended September 30, 2022 compared to the prior year period primarily reflecting higher volume related expenses in the current year period and lower staffing levels and limited travel and entertainment expenses in the prior year period.

Asset Management

The following tables present the mutual fund performance of our retail Columbia Threadneedle Investments funds, including funds recently acquired through the BMO Global Asset Management (EMEA) acquisition, as of September 30, 2022:

Retail Fund Rankings in Top 2 Quartiles or Above Index Benchmark - Asset Weighted**(1)**			1 year			3 year			5 year			10 year
Equity			61%			83%			74%			87%
Fixed Income			38%			71%			62%			86%
Asset Allocation			56%			62%			68%			90%
4- or 5-star Morningstar rated funds**(2)**			Overall			3 year			5 year			10 year
Number of rated funds			130			102			91			100
Percent of rated assets			56%			51%			47%			60%

(1) Retail Fund performance rankings for each fund are measured on a consistent basis against the most appropriate peer group or index. Peer groupings of Columbia funds are defined by Lipper category and are based on the Primary Share Class (i.e. Institutional if available, otherwise Advisor or Instl3 share class), net of fees. Peer groupings of Threadneedle funds are defined by either IA or Morningstar index and are measured gross of fees.

To calculate asset weighted performance, the sum of the total assets of the funds with above median ranking are divided by total assets of all funds. Funds with more assets will receive a greater share of the total percentage above or below median.

Aggregated Asset Allocation Funds may include funds that invest in other Columbia or Threadneedle branded mutual funds included in both equity and fixed income.

(2) Columbia funds are available for purchase by U.S. customers. Out of 104 Columbia funds rated (based on primary share class), 19 received a 5-star Overall Rating and 30 received a 4-star Overall Rating. Out of 155 Threadneedle funds rated (based on highest-rated share class), 24 received a 5-star Overall Rating and 57 received a 4-star Overall Rating. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.

AMERIPRISE FINANCIAL, INC.

The following table presents global managed assets by type:																											Average (1)												Change
			As of September 30,												Change									Three Months Ended September 30,
2022						2021						2022						2021
			(in billions)
Equity			$	278.5					$	332.7					$	(54.2)					(16)		%				$	305.1					$	340.8					$	(35.7)					(10)		%
Fixed income			194.6						198.7						(4.1)						(2)						214.3						200.1						14.2						7
Money market			21.3						5.8						15.5						NM						18.5						5.8						12.7						NM
Alternative			35.2						23.4						11.8						50						37.0						23.4						13.6						58
Hybrid and other			16.9						22.8						(5.9)						(26)						18.4						23.2						(4.8)						(21)
Total managed assets (2)			$	546.5					$	583.4					$	(36.9)					(6)		%				$	593.3					$	593.3					$	—					—
NM Not Meaningful.

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

(2) In the fourth quarter of 2021, the definition of Alternative AUM was changed to now include real estate, CLOs, private equity, hedge funds (direct and fund of funds), infrastructure and commodities to better demonstrate our underlying business and the additional assets from the acquisition of the BMO Global Asset Management (EMEA) business. Prior periods have been restated to reflect this change.

The following table presents the changes in global managed assets:

			Three Months Ended September 30,
2022						2021
(in billions)
Global Retail Funds
Beginning assets			$	323.0					$	359.5
Inflows			11.7						16.4
Outflows			(17.6)						(15.5)
Net VP/VIT fund flows			(1.0)						(1.1)
Net new flows			(6.9)						(0.2)
Reinvested dividends			1.6						2.0
Net flows			(5.3)						1.8
Distributions			(1.9)						(2.1)
Market appreciation (depreciation) and other			(15.3)						(2.3)
Foreign currency translation (1)			(4.3)						(1.2)
Total ending assets			296.2						355.7
Global Institutional
Beginning assets			275.2						233.9
Inflows (2)			14.9						9.4
Outflows (2)			(12.0)						(7.3)
Net flows			2.9						2.1
Market appreciation (depreciation) and other (3)			(17.8)						(5.9)
Foreign currency translation (1)			(10.0)						(2.4)
Total ending assets			250.3						227.7
Total managed assets			$	546.5					$	583.4
Total net flows			$	(2.4)					$	3.9
Legacy insurance partners net flows (4)			$	(1.0)					$	(1.4)

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

(2) Global Institutional inflows and outflows include net flows from our RiverSource Structured Annuity product and Ameriprise Bank, FSB.

(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, FSB.

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

AMERIPRISE FINANCIAL, INC.

Total segment AUM decreased $51.7 billion, or 9%, during the three months ended September 30, 2022 primarily due to equity and bond market depreciation and the negative impact of foreign currency translation. Net outflows were $2.4 billion in the third quarter of 2022, a $6.3 billion decrease compared to the prior year period. Global retail net outflows were $5.3 billion. Global institutional net inflows were $2.9 billion and included $1.0 billion of outflows from legacy insurance partners assets.

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

			Three Months Ended September 30,												Change
			2022						2021
			(in millions)
Revenues
Management and financial advice fees			$	723					$	794					$	(71)					(9)		%
Distribution fees			96						120						(24)						(20)
Net investment income			2						1						1						NM
Other revenues			2						—						2						—
Total revenues			823						915						(92)						(10)
Banking and deposit interest expense			—						—						—						—
Total net revenues			823						915						(92)						(10)
Expenses
Distribution expenses			238						288						(50)						(17)
Amortization of deferred acquisition costs			2						3						(1)						(33)
Interest and debt expense			1						1						—						—
General and administrative expense			391						338						53						16
Total expenses			632						630						2						—
Adjusted operating earnings			$	191					$	285					$	(94)					(33)		%
NM Not Meaningful.

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, decreased $94 million, or 33%, for the three months ended September 30, 2022 compared to the prior year period primarily due to equity market depreciation, net outflows and an unfavorable foreign exchange impact, partially offset by the acquisition of the BMO Global Asset Management (EMEA) business.

Net Revenues

Management and financial advice fees decreased $71 million, or 9%, for the three months ended September 30, 2022 compared to the prior year period primarily due to lower average equity markets, the cumulative impact from net outflows and the impact of foreign exchange rates, partially offset by the acquired BMO Global Asset Management (EMEA) business.

Distribution fees decreased $24 million, or 20%, for the three months ended September 30, 2022 compared to the prior year period reflecting lower average equity markets and the cumulative impact from net outflows.

Expenses

Distribution expenses decreased $50 million, or 17%, for the three months ended September 30, 2022 compared to the prior year period primarily reflecting lower average equity markets and the cumulative impact from net outflows.

General and administrative expense increased $53 million, or 16%, for the three months ended September 30, 2022 compared to the prior year period primarily reflecting the operating expenses of the acquired BMO Global Asset Management (EMEA) business, partially offset by the cumulative impact from net outflows and the impact of foreign exchange rates.

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,												Change
2022						2021
(in millions)
Revenues
Management and financial advice fees			$	189					$	239					$	(50)					(21)		%
Distribution fees			101						125						(24)						(19)
Net investment income			151						114						37						32
Premiums, policy and contract charges			342						353						(11)						(3)
Other revenues			3						3						—						—
Total revenues			786						834						(48)						(6)
Banking and deposit interest expense			—						—						—						—
Total net revenues			786						834						(48)						(6)
Expenses
Distribution expenses			103						134						(31)						(23)
Interest credited to fixed accounts			97						99						(2)						(2)
Benefits, claims, losses and settlement expenses			414						323						91						28
Amortization of deferred acquisition costs			49						5						44						NM
Interest and debt expense			10						9						1						11
General and administrative expense			82						77						5						6
Total expenses			755						647						108						17
Adjusted operating earnings			$	31					$	187					$	(156)					(83)		%
NM Not Meaningful.

Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual), the market impact on non-traditional long-duration products (including variable annuity contracts and IUL contracts, net of hedges and the related DSIC and DAC amortization, unearned amortization and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts decreased $156 million, or 83%, for the three months ended September 30, 2022 compared to prior year period, primarily reflecting the impact of unlocking.

Variable annuity account balances decreased 20% to $71.3 billion as of September 30, 2022 compared to the prior year period due to market depreciation and net outflows of $2.0 billion. Variable annuity sales decreased 35% compared to the prior year period reflecting a decrease in sales of variable annuities with living benefit guarantees. The risk profile of our in force block continues to improve, with account values with living benefit riders down to 58% as of September 30, 2022 compared to 62% a year ago. This trend is expected to continue and meaningfully shift the mix of business away from products with living benefit guarantees over time.

We continue to optimize our risk profile and shift our business mix to lower risk offerings. During the fourth quarter of 2021, we made the decision to discontinue new sales of substantially all of our variable annuities with living benefit guarantees at the end of 2021, and have fully stopped issuing new contracts as of June 30, 2022. In addition, we discontinued new sales of our universal life insurance with secondary guarantees and our single-pay fixed universal life with a long term care rider products at the end of 2021.

Net Revenues

Management and financial advice fees decreased $50 million, or 21%, for the three months ended September 30, 2022 compared to the prior year period primarily due to lower average equity markets and the cumulative impact from net outflows.

Distribution fees decreased $24 million, or 19%, for the three months ended September 30, 2022 compared to the prior year period reflecting lower average equity markets and the cumulative impact from net outflows.

Net investment income, which excludes net realized investment gains or losses, increased $37 million, or 32%, for the three months ended September 30, 2022 compared to the prior year period primarily due to higher average invested assets as well has higher interest rates.

Expenses

Distribution expenses decreased $31 million, or 23%, for the three months ended September 30, 2022 compared to the prior year period primarily reflecting decreased variable annuity sales and market depreciation.

AMERIPRISE FINANCIAL, INC.

Benefits, claims, losses and settlement expenses, which exclude the market impact on variable annuity contracts (net of hedges and the related DSIC amortization), mean reversion related impacts and the DSIC offset to net realized investment gains or losses, increased $91 million, or 28%, for the three months ended September 30, 2022 compared to the prior year period primarily reflecting the impact of unlocking. The unlocking impact for the third quarter of 2022 was an expense of $180 million primarily reflecting continued lower surrender rates and updated mortality assumptions for variable annuities with living benefits compared to an expense of $89 million in the prior year period which was also driven by lower surrender rates.

Amortization of DAC, which excludes mean reversion related impacts, the DAC offset to the market impact on variable annuity contracts and IUL contracts and the DAC offset to net realized investment gains or losses, increased $44 million for the three months ended September 30, 2022 compared to the prior year period primarily reflecting the impact of unlocking due to lower surrender rates, partially offset by a lower level of normalized amortization. The unlocking impact for the third quarter of 2022 was a benefit of $5 million compared to a benefit of $65 million in the prior year period.

Corporate & Other

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

			Three Months Ended September 30,												Change
			2022						2021
			(in millions)
Revenues
Net investment income			$	35					$	31					$	4					13		%
Premiums, policy and contract charges			25						26						(1)						(4)
Other revenues			57						56						1						2
Total revenues			117						113						4						4
Banking and deposit interest expense			2						—						2						—
Total net revenues			115						113						2						2
Expenses
Distribution expenses			(2)						(2)						—						—
Interest credited to fixed accounts			61						64						(3)						(5)
Benefits, claims, losses and settlement expenses			64						59						5						8
Amortization of deferred acquisition costs			(2)						1						(3)						NM
Interest and debt expense			17						16						1						6
General and administrative expense			56						56						—						—
Total expenses			194						194						—						—
Adjusted operating loss			$	(79)					$	(81)					$	2					2		%
NM Not Meaningful.

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 deferred annuity contracts (net of hedges and the related DAC amortization), 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, 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 $2 million for the three months ended September 30, 2022 compared to the prior year period.

LTC insurance had a pretax adjusted operating loss of $3 million for the three months ended September 30, 2022 compared to pretax adjusted operating loss of $1 million for the prior year period.

FA business had a pretax adjusted operating loss of $3 million for the three months ended September 30, 2022 compared to a pretax adjusted operating loss of $7 million. Fixed deferred annuity account balances declined 5% to $7.3 billion as of September 30, 2022 compared to the prior year period as surrender trends continue. During the third quarter of 2021, we closed on a transaction to reinsure RiverSource Life’s fixed deferred and immediate annuity policies.

Net Revenues

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

AMERIPRISE FINANCIAL, INC.

restructuring charges, and the impact of consolidating CIEs, increased $4 million, or 13%, for the three months ended September 30, 2022 compared to the prior year period primarily reflecting lower amortization in our affordable housing partnerships and a higher portfolio yield from increasing interest rates.

Expenses

Benefits, claims, losses and settlement expenses, which excludes DSIC offset to net realized investment gains or losses, increased $5 million, or 8%, for the three months ended September 30, 2022 compared to the prior year period primarily reflecting a net favorable out-of-period correction in the prior year period. The unlocking impact for the third quarter of 2022 was a benefit of $1 million compared to an unlocking expense of $3 million in the prior year period.

Consolidated Results of Operations for the Nine Months Ended September 30, 2022 and 2021

The following table presents our consolidated results of operations:

			Nine Months Ended September 30,												Change
			2022						2021
			(in millions)
Revenues
Management and financial advice fees			$	6,908					$	6,720					$	188					3		%
Distribution fees			1,410						1,368						42						3
Net investment income			897						1,428						(531)						(37)
Premiums, policy and contract charges			1,094						(94)						1,188						NM
Other revenues			365						259						106						41
Total revenues			10,674						9,681						993						10
Banking and deposit interest expense			20						10						10						NM
Total net revenues			10,654						9,671						983						10
Expenses
Distribution expenses			3,728						3,693						35						1
Interest credited to fixed accounts			443						455						(12)						(3)
Benefits, claims, losses and settlement expenses			663						338						325						96
Amortization of deferred acquisition costs			355						77						278						NM
Interest and debt expense			136						149						(13)						(9)
General and administrative expense			2,766						2,475						291						12
Total expenses			8,091						7,187						904						13
Pretax income			2,563						2,484						79						3
Income tax provision			498						425						73						17
Net income			$	2,065					$	2,059					$	6					—
NM Not Meaningful.

Overall

Pretax income increased $79 million, or 3%, for the nine months ended September 30, 2022 compared to the prior year period.

• The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual was a benefit of $571 million for the nine months ended September 30, 2022 compared to an expense of $577 million for the prior year period.

• A favorable impact from the continued increase in short-term interest rates.

• The prior year impact of the block transfer reinsurance transaction resulted in $521 million of pretax income for the nine months ended September 30, 2021 primarily reflecting the net realized gains on the investments sold to the reinsurer.

• The mean reversion related impact was an expense of $299 million for the nine months ended September 30, 2022 compared to a benefit of $107 million for the prior year period.

• The unfavorable impact of unlocking was $161 million for the nine months ended September 30, 2022 compared to a favorable impact of $17 million for the prior year period.

• An unfavorable impact from lower average equity markets for the nine months ended September 30, 2022 compared to the prior year period.

AMERIPRISE FINANCIAL, INC.

See our Consolidated Results of Operations for the three months ended September 30, 2022 and 2021 for a table and discussion of total pretax impacts on our revenues and expenses attributable to unlocking.

Net Revenues

Management and financial advice fees increased $188 million, or 3%, for the nine months ended September 30, 2022 compared to the prior year period reflecting revenue associated with the acquisition of the BMO Global Asset Management (EMEA) business, continued wrap account net inflows, and an increase in performance fees of $43 million, partially offset by market depreciation and an unfavorable foreign exchange impact.

Distribution fees increased $42 million, or 3%, for the nine months ended September 30, 2022 compared to the prior year period due to higher fees on off-balance sheet brokerage cash primarily due to an increase in short-term interest rates, partially offset by lower transactional activity and market depreciation.

Net investment income decreased $531 million, or 37%, for the nine months ended September 30, 2022 compared to the prior year period primarily reflecting:

• Net realized investment losses of $82 million for the nine months ended September 30, 2022 compared to net realized investment gains of $627 million for the prior year period. Net realized investment losses for the nine months ended September 30, 2022 were primarily driven by impairments on securities we intend to sell as we repositioned a portion of our fixed maturity bond portfolio in response to recent market conditions and credit losses on corporate debt securities. Net realized investment gains for the nine months ended September 30, 2021 included net realized gains of $553 million on Available-for-Sale securities and a $55 million net gain related to commercial mortgage loans primarily due to the sale of securities and loans to the reinsurer as a result of the fixed deferred and immediate annuity reinsurance transaction that closed in the third quarter 2021, as well as a $15 million gain on a strategic investment.

• The unfavorable impact of lower average invested assets due to the sale of investments as a result of the fixed deferred and immediate annuity reinsurance transaction.

• The favorable impact of increased bank deposits and rising short-term interest rates.

Premiums, policy and contract charges increased $1.2 billion for the nine months ended September 30, 2022 compared to the prior year period primarily reflecting ceded premiums of $1.2 billion associated with the reinsurance transaction for the life contingent immediate annuity policies in the year ago period.

Other revenues increased $106 million, or 41%, for the nine months ended September 30, 2022 compared to the prior year period primarily reflecting the yield on deposit receivables arising from reinsurance transactions.

Expenses

Interest credited to fixed accounts decreased $12 million, or 3%, for the nine months ended September 30, 2022 compared to the prior year period primarily reflecting the following items:

• A $70 million decrease in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits. The favorable impact of the nonperformance credit spread was $54 million for the nine months ended September 30, 2022 compared to an unfavorable impact of $16 million for the prior year period.

• A $74 million increase in expense from other market impacts on IUL benefits, net of hedges, which was an expense of $29 million for the nine months ended September 30, 2022 compared to a benefit of $45 million for the prior year period. The increase in expense was primarily due to an increase in the IUL embedded derivative in the current year period, which reflected higher option costs due to a higher new money rate, compared to a decrease in the IUL embedded derivative in the prior year period, which reflected lower option costs due to higher discount rates.

Benefits, claims, losses and settlement expenses increased $325 million, or 96%, for the nine months ended September 30, 2022 compared to the prior year period primarily reflecting the following items:

• A $1.2 billion decrease in expense associated with the reinsurance transaction for life contingent immediate annuity policies in the prior year period.

• A $211 million decrease in expense primarily reflecting the impact of year-over-year changes in the unhedged nonperformance credit spread risk adjustment on variable annuity guaranteed benefits.

• A $986 million decrease in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks and the related DSIC amortization. This decrease was the result of a favorable $449 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits and a favorable $537 million change in the market impact on variable annuity guaranteed living benefits reserves. The main market drivers contributing to these changes are summarized below:

AMERIPRISE FINANCIAL, INC.

• Equity market impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the nine months ended September 30, 2022 compared to an expense in the prior year period.

• Interest rate impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a higher expense for the nine months ended September 30, 2022 compared to the prior year period.

• Volatility impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the nine months ended September 30, 2022 compared to the prior year period.

• Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and various behavioral items, were a net expense for the nine months ended September 30, 2022 compared to a net benefit for the prior year period.

• The impact of unlocking excluding LTC was an expense of $170 million for the nine months ended September 30, 2022 compared to an expense of $59 million for the prior year period.

• The annual review of LTC future policy benefit reserve in the third quarter of 2022 resulted in unlocking of nil compared to unlocking of $3 million in the prior year period.

• The mean reversion related impact was an expense of $174 million for the nine months ended September 30, 2022 compared to a benefit of $65 million for the prior year period.

• A $50 million increase in expense on LTC insurance as claims returned to more normalized levels compared to the prior year period which benefited from COVID-19 related impacts.

Amortization of DAC increased $278 million for the nine months ended September 30, 2022 compared to the prior year period primarily reflecting the following items:

• The impact of unlocking in the third quarter of 2022 was a benefit of $8 million compared to a benefit of $60 million in the prior year period.

• The DAC offset to the market impact on non-traditional long-duration products was an expense of $74 million for the nine months ended September 30, 2022 compared to a benefit of $42 million for the prior year period.

• The mean reversion related impact was an expense of $124 million for the nine months ended September 30, 2022 compared to a benefit of $41 million for the prior year period.

• A decrease in amortization reflecting lower than expected client exit rates.

General and administrative expense increased $291 million, or 12%, for the nine months ended September 30, 2022 compared to the prior year period primarily reflecting the operating expenses of the acquired BMO Global Asset Management (EMEA) business, higher performance fee related compensation, and $35 million of integration related expenses, partially offset by a favorable change in the mark-to-market impact on share-based compensation and a favorable foreign exchange impact.

Income Taxes

Our effective tax rate was 19.4% for the nine months ended September 30, 2022 compared to 17.1% for the prior year period. The higher effective tax rate for the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021 was primarily the result of a decrease in low income housing tax credits and foreign taxes, and an increase in state income taxes net of federal benefit. See Note 15 to our Consolidated Financial Statements for additional discussion on income taxes.

AMERIPRISE FINANCIAL, INC.

Results of Operations by Segment for the Nine Months Ended September 30, 2022 and 2021

The following table presents summary financial information by segment:

			Nine Months Ended September 30,
2022						2021
(in millions)
Advice & Wealth Management
Net revenues			$	6,235					$	5,907
Expenses			4,708						4,636
Adjusted operating earnings			$	1,527					$	1,271
Asset Management
Net revenues			$	2,721					$	2,622
Expenses			2,023						1,856
Adjusted operating earnings			$	698					$	766
Retirement & Protection Solutions
Net revenues			$	2,318					$	2,429
Expenses			1,917						1,877
Adjusted operating earnings			$	401					$	552
Corporate & Other
Net revenues			$	350					$	371
Expenses			558						550
Adjusted operating loss			$	(208)					$	(179)

See our Results of Operations by Segment for the three months ended September 30, 2022 and 2021 for a table of segment pretax adjusted operating impacts on our revenues and expenses attributable to unlocking and LTC loss recognition.

Advice & Wealth Management

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

			2022						2021
(in billions)
Beginning balance			$	464.7					$	380.0
Net flows (1)			21.3						29.9
Market appreciation (depreciation) and other (1)			(100.8)						25.5
Ending balance			$	385.2					$	435.4
Advisory wrap account assets ending balance (2)			$	381.1					$	430.5
Average advisory wrap account assets (3)			$	426.4					$	406.6

(1) Beginning in the first quarter of 2021, wrap net flows is calculated including dividends and interest less fees which were previously recorded in Market appreciation (depreciation) and other. Net flows excludes short-term and long-term capital gain distributions. Prior periods have been restated.

(2) 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.

(3) 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, 2022 and 2021.

Ending wrap account assets decreased $79.5 billion, or 17%, to $385.2 billion during the nine months ended September 30, 2022 due to market depreciation and other of $100.8 billion, partially offset by net inflows of $21.3 billion. Average advisory wrap account assets increased $19.8 billion, or 5%, compared to the prior year period primarily reflecting net inflows, partially offset by market depreciation.

AMERIPRISE FINANCIAL, INC.

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

			Nine Months Ended September 30,												Change
			2022						2021
			(in millions)
Revenues
Management and financial advice fees			$	4,017					$	3,878					$	139					4		%
Distribution fees			1,650						1,682						(32)						(2)
Net investment income			417						189						228						NM
Other revenues			171						168						3						2
Total revenues			6,255						5,917						338						6
Banking and deposit interest expense			20						10						10						NM
Total net revenues			6,235						5,907						328						6
Expenses
Distribution expenses			3,566						3,567						(1)						—
Interest and debt expense			8						8						—						—
General and administrative expense			1,134						1,061						73						7
Total expenses			4,708						4,636						72						2
Adjusted operating earnings			$	1,527					$	1,271					$	256					20		%
NM Not Meaningful.

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $256 million, or 20%, for the nine months ended September 30, 2022 compared to the prior year period due to higher average wrap account balances and higher earnings on bank and brokerage cash as a result of increasing short-term interest rates. Pretax adjusted operating margin was 24.5% for the for the nine months ended September 30, 2022 compared to 21.5% for the prior year period.

Net Revenues

Management and financial advice fees increased $139 million, or 4%, for the nine months ended September 30, 2022 compared to the prior year period primarily due to growth in average wrap account assets. Average advisory wrap account assets increased $19.8 billion, or 5%, compared to the prior year period primarily reflecting net inflows, partially offset by market depreciation.

Distribution fees decreased $32 million, or 2%, for the nine months ended September 30, 2022 compared to the prior year period reflecting decreased transactional activity, partially offset by $134 million of higher fees on off-balance sheet brokerage cash primarily due to an increase in short-term interest rates.

Net investment income, which excludes net realized investment gains or losses, increased $228 million for the nine months ended September 30, 2022 compared to the prior year period primarily due to higher average invested assets due to increased bank deposits and the favorable impact of increased short-term interest rates.

Expenses

General and administrative expense increased $73 million, or 7%, for the nine months ended September 30, 2022 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:																											Average (1)												Change
			As of September 30,												Change									Nine Months Ended September 30,
2022						2021						2022						2021
			(in billions)
Equity			$	278.5					$	332.7					$	(54.2)					(16)		%				$	341.4					$	326.3					$	15.1					5		%
Fixed income			194.6						198.7						(4.1)						(2)						239.3						198.3						41.0						21
Money market			21.3						5.8						15.5						NM						15.6						5.9						9.7						NM
Alternative			35.2						23.4						11.8						50						38.4						23.0						15.4						67
Hybrid and other			16.9						22.8						(5.9)						(26)						20.5						22.2						(1.7)						(8)
Total managed assets (2)			$	546.5					$	583.4					$	(36.9)					(6)		%				$	655.2					$	575.7					$	79.5					14		%
NM Not Meaningful.

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

(2) In the fourth quarter of 2021, the definition of Alternative AUM was changed to now include real estate, CLOs, private equity, hedge funds (direct and fund of funds), infrastructure and commodities to better demonstrate our underlying business and the additional assets from the acquisition of the BMO Global Asset Management (EMEA) business. Prior periods have been restated to reflect this change.

AMERIPRISE FINANCIAL, INC.

The following table presents the changes in global managed assets:

			Nine Months Ended September 30,
			2022						2021
			(in billions)
Global Retail Funds (1)
Beginning assets			$	409.4					$	323.5
Inflows			49.1						58.4
Outflows			(64.6)						(50.2)
Net VP/VIT fund flows			(3.1)						(3.1)
Net new flows (2)			(18.6)						5.1
Reinvested dividends			5.7						5.5
Net flows			(12.9)						10.6
Distributions			(6.5)						(6.4)
Market appreciation (depreciation) and other			(84.2)						29.0
Foreign currency translation (3)			(9.6)						(1.0)
Total ending assets			296.2						355.7
Global Institutional (1)
Beginning assets			344.7						223.1
Inflows (4)			43.8						26.5
Outflows (4)			(37.0)						(21.6)
Net flows			6.8						4.9
Market appreciation (depreciation) and other (5)			(75.9)						1.4
Foreign currency translation (3)			(25.3)						(1.7)
Total ending assets			250.3						227.7
Total managed assets			$	546.5					$	583.4
Total net flows			$	(6.1)					$	15.5
Legacy insurance partners net flows (6)			$	(2.9)					$	(4.0)

(1) The beginning balances as of January 1, 2022 for Global Retail Funds and Global Institutional were corrected by $8.9 billion due to a reclassification of assets. Total AUM as of January 1, 2022 remained unchanged.

(2) First quarter 2022 net flows included $2.5 billion of retail and $0.1 billion of institutional net flows from the US asset transfer in connection with our acquisition of the BMO Global Asset Management (EMEA) business.

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

(4) Global Institutional inflows and outflows include net flows from our RiverSource Structured Annuity product and Ameriprise Bank, FSB.

(5) 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, FSB.

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

Total segment AUM decreased $207.6 billion, or 28%, during the nine months ended September 30, 2022 primarily due to equity and bond market depreciation. Net outflows were $6.1 billion for the nine months ended September 30, 2022, a decrease of $21.6 billion compared to 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:

			Nine Months Ended September 30,												Change
			2022						2021
			(in millions)
Revenues
Management and financial advice fees			$	2,398					$	2,265					$	133					6		%
Distribution fees			307						352						(45)						(13)
Net investment income			6						4						2						50
Other revenues			10						1						9						NM
Total revenues			2,721						2,622						99						4
Banking and deposit interest expense			—						—						—						—
Total net revenues			2,721						2,622						99						4
Expenses
Distribution expenses			767						838						(71)						(8)
Amortization of deferred acquisition costs			8						9						(1)						(11)
Interest and debt expense			3						3						—						—
General and administrative expense			1,245						1,006						239						24
Total expenses			2,023						1,856						167						9
Adjusted operating earnings			$	698					$	766					$	(68)					(9)		%
NM Not Meaningful.

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, decreased $68 million, or 9%, for the nine months ended September 30, 2022 compared to the prior year period primarily due to market depreciation, an unfavorable foreign exchange impact and net outflows.

Net Revenues

Management and financial advice fees increased $133 million, or 6%, for the nine months ended September 30, 2022 compared to the prior year period primarily due to the acquired BMO Global Asset Management (EMEA) business and an increase in performance fees of $43 million, partially offset by market depreciation, the cumulative impact from net outflows and the impact of foreign exchange rates.

Distribution fees decreased $45 million, or 13%, for the nine months ended September 30, 2022 compared to the prior year period primarily due to market depreciation and the cumulative impact from net outflows.

Other revenues increased $9 million for the nine months ended September 30, 2022 compared to the prior year period primarily due to the acquired BMO Global Asset Management (EMEA) business.

Expenses

Distribution expenses decreased $71 million, or 8%, for the nine months ended September 30, 2022 compared to the prior year period primarily due to market depreciation and the cumulative impact from net outflows.

General and administrative expense increased $239 million, or 24%, for the nine months ended September 30, 2022 compared to the prior year period primarily reflecting the operating expenses of the acquired BMO Global Asset Management (EMEA) business and higher performance fee related compensation, partially offset by the cumulative impact from net outflows and the impact of foreign exchange rates.

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:

			Nine Months Ended September 30,												Change
2022						2021
(in millions)
Revenues
Management and financial advice fees			$	604					$	695					$	(91)					(13)		%
Distribution fees			319						363						(44)						(12)
Net investment income			389						367						22						6
Premiums, policy and contract charges			996						1,001						(5)						—
Other revenues			10						3						7						NM
Total revenues			2,318						2,429						(111)						(5)
Banking and deposit interest expense			—						—						—						—
Total net revenues			2,318						2,429						(111)						(5)
Expenses
Distribution expenses			337						397						(60)						(15)
Interest credited to fixed accounts			289						293						(4)						(1)
Benefits, claims, losses and settlement expenses			877						798						79						10
Amortization of deferred acquisition costs			156						138						18						13
Interest and debt expense			28						28						—						—
General and administrative expense			230						223						7						3
Total expenses			1,917						1,877						40						2
Adjusted operating earnings			$	401					$	552					$	(151)					(27)		%
NM Not Meaningful.

Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the related DAC amortization, unearned revenue amortization and the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC and DAC amortization), the market impact on IUL benefits (net of hedges and the related DAC amortization, unearned revenue amortization and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts decreased $151 million, or 27%, for the nine months ended September 30, 2022 compared to the prior year period.

Net Revenues

Management and financial advice fees decreased $91 million, or 13%, for the nine months ended September 30, 2022 compared to the prior year period primarily due to market depreciation and variable annuity net outflows.

Distribution fees decreased $44 million, or 12%, for the nine months ended September 30, 2022 compared to the prior year period due to market depreciation.

Expenses

Distribution expenses decreased $60 million, or 15%, for the nine months ended September 30, 2022 compared to the prior year period primarily reflecting lower variable annuity sales and market depreciation.

Benefits, claims, losses and settlement expenses, which exclude the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC amortization) and mean reversion related impacts, increased $79 million, or 10%, for the nine months ended September 30, 2022 compared to the prior year period primarily reflecting the impact of unlocking. The unlocking impact for the third quarter of 2022 was an expense of $180 million primarily reflecting continued lower surrender rates and updated mortality assumptions for variable annuities with living benefits compared to an expense of $89 million in the prior year period which was also driven by lower surrender rates.

Amortization of DAC, which excludes mean reversion related impacts and the DAC offset to the market impact on variable annuity guaranteed benefits, increased $18 million, or 13%, for the nine months ended September 30, 2022 compared to the prior year period primarily reflecting the impact of unlocking due to lower surrender rates, partially offset by a lower level of normalized amortization and lower than expected client exit rates. The unlocking impact for the third quarter of 2022 was a benefit of $5 million compared to a benefit of $65 million in the prior year period.

AMERIPRISE FINANCIAL, INC.

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,												Change
			2022						2021
			(in millions)
Revenues
Net investment income			$	107					$	210					$	(103)					(49)		%
Premiums, policy and contract charges			73						75						(2)						(3)
Other revenues			172						87						85						98
Total revenues			352						372						(20)						(5)
Banking and deposit interest expense			2						1						1						NM
Total net revenues			350						371						(21)						(6)
Expenses
Distribution expenses			(6)						(6)						—						—
Interest credited to fixed accounts			182						187						(5)						(3)
Benefits, claims, losses and settlement expenses			177						126						51						40
Amortization of deferred acquisition costs			1						7						(6)						(86)
Interest and debt expense			48						48						—						—
General and administrative expense			156						188						(32)						(17)
Total expenses			558						550						8						1
Adjusted operating loss			$	(208)					$	(179)					$	(29)					(16)		%
NM Not Meaningful.

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 and the related DAC amortization), 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 $29 million, or 16%, for the nine months ended September 30, 2022 compared to the prior year period.

LTC insurance had a pretax adjusted operating loss of $3 million for the nine months ended September 30, 2022 compared to a pretax adjusted operating earnings of $48 million for the prior year period primarily reflecting the return to more normalized results compared to the COVID-19 related impacts in the prior year period.

FA business had a pretax adjusted operating loss of $12 million for the nine months ended September 30, 2022 compared to a pretax adjusted operating loss of $17 million for the prior year period.

Net Revenues

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 $103 million, or 49%, for the nine months ended September 30, 2022 compared to the prior year period primarily reflecting lower average invested assets due to the sale of investments to a reinsurer as a result of the fixed deferred and immediate annuity reinsurance transaction and a $15 million gain on a strategic investment in the prior year period.

Other revenues increased $85 million, or 98%, for the nine months ended September 30, 2022 compared to the prior year period primarily reflecting the yield on deposit receivables arising from reinsurance transactions.

Expenses

Benefits, claims, losses and settlement expenses, which excludes DSIC offset to net realized investment gains or losses, increased $51 million, or 40%, for the nine months ended September 30, 2022 compared to the prior year period primarily reflecting more normalized claims on LTC insurance, which benefited from COVID-19 related impacts in the prior year period, and the impacts from unlocking. The unlocking impact for the third quarter of 2022 was a benefit of $1 million compared to an unlocking expense of $3 million in the prior year period.

General and administrative expense, which excludes integration and restructuring charges, decreased $32 million, or 17%, for the nine months ended September 30, 2022 compared to the prior year period primarily reflecting the favorable mark-to-market impact on share-based compensation expense.

AMERIPRISE FINANCIAL, INC.

Market Risk

Our primary market risk exposures are interest rate, equity price, foreign currency exchange rate and credit risk. Equity price and interest rate fluctuations can have a significant impact on our results of operations, primarily due to the effects they have on the asset management and other asset-based fees we earn, the spread income generated on our fixed insurance, brokerage client cash balances, banking deposits, face-amount certificate products, fixed portion of our variable annuities and variable insurance contracts, the value of DAC and DSIC assets, the value of liabilities for guaranteed benefits associated with our variable annuities and the value of derivatives held to hedge these benefits.

Our earnings from fixed insurance, the fixed portion of variable annuities and variable insurance contracts, and fixed deferred annuities are based upon the spread between rates earned on assets held and the rates at which interest is credited to accounts. We primarily invest in fixed rate securities to fund the rate credited to clients. We guarantee an interest rate to the holders of these products. Investment assets and client liabilities generally differ as it relates to basis, repricing or maturity characteristics. Rates credited to clients’ accounts generally reset at shorter intervals than the yield on the underlying investments. Therefore, in an increasing interest rate environment, higher interest rates may be reflected in crediting rates to clients sooner than in rates earned on invested assets, which could result in a reduced spread between the two rates, reduced earned income and a negative impact on pretax income. While interest rates under the current environment have relieved some pressure from the liability guaranteed minimum interest rates (“GMIRs”), there are still some GMIRs above current levels. Hence, liability credited rates will move more slowly under a modest rise in interest rates while projected asset purchases would capture the full increase in interest rates. This dynamic would result in widening spreads under a modestly rising rate scenario given the current relationship between the current level of interest rates and the underlying GMIRs on the business.

As a result of the current market environment, reinvestment yields are becoming more aligned with the current portfolio yield. We would expect the recent decline in our portfolio income yields to slow and begin to stabilize in future periods under the current environment. The carrying value and weighted average yield of non-structured fixed maturity securities and commercial mortgage loans that may generate proceeds to reinvest through September 30, 2024 due to prepayment, maturity or call activity at the option of the issuer, excluding securities with a make-whole provision, were $2.7 billion and 3.2%, respectively, as of September 30, 2022. In addition, residential mortgage backed securities, which can be subject to prepayment risk under a low interest rate environment, totaled $14.4 billion and had a weighted average yield of 3.0% as of September 30, 2022. While these amounts represent investments that could be subject to reinvestment risk, it is also possible that these investments will be used to fund liabilities or may not be prepaid and will remain invested at their current yields. In addition to the interest rate environment, the mix of benefit payments versus product sales as well as the timing and volumes associated with such mix may impact our investment yield. Furthermore, reinvestment activities and the associated investment yield may also be impacted by corporate strategies implemented at management’s discretion. The average yield for investment purchases during the nine months ended September 30, 2022 was approximately 3.8%.

The reinvestment of proceeds from maturities, calls and prepayments at rates near the current portfolio yield will have limited impact to future operating results. In this volatile rate environment, we assess reinvestment risk in our investment portfolio and monitor this risk in accordance with our asset/liability management framework. In addition, we may update the crediting rates on our fixed products when warranted, subject to guaranteed minimums.

In addition to the fixed rate exposures noted above, RiverSource Life has the following variable annuity guarantee benefits: guaranteed minimum withdrawal benefits (“GMWB”), guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum death benefits (“GMDB”) and guaranteed minimum income benefits (“GMIB”). Each of these benefits guarantees payouts to the annuity holder under certain specific conditions regardless of the performance of the underlying invested assets.

The variable annuity guarantees continue to be managed by utilizing a hedging program which attempts to match the sensitivity of the assets with the sensitivity of the liabilities. This approach works with the premise that matched sensitivities will produce a highly effective hedging result. Our comprehensive hedging program focuses mainly on first order sensitivities of assets and liabilities: Equity Market Level (Delta), Interest Rate Level (Rho) and Volatility (Vega). Additionally, various second order sensitivities are managed. We use various options, swaptions, swaps and futures to manage risk exposures. The exposures are measured and monitored daily, and adjustments to the hedge portfolio are made as necessary.

We have a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on our statutory surplus and to cover some of the residual risks not covered by other hedging activities. We assess the residual risk under a range of scenarios in creating and executing the macro hedge program. As a means of economically hedging these risks, we may use a combination of futures, options, swaps and swaptions. Certain of the macro hedge derivatives used contain settlement provisions linked to both equity returns and interest rates; the remaining are interest rate contracts or equity contracts. The macro hedge program could result in additional earnings volatility as changes in the value of the macro hedge derivatives, which are designed to reduce statutory capital volatility, may not be closely aligned to changes in the variable annuity guarantee embedded derivatives.

To evaluate interest rate and equity price risk we perform sensitivity testing which measures the impact on pretax income from the sources listed below for a 12-month period following a hypothetical 100 basis point increase in interest rates or a hypothetical 10% decline in equity prices. The interest rate risk test assumes a sudden 100 basis point parallel shift in the yield curve, with rates then

AMERIPRISE FINANCIAL, INC.

staying at those levels for the next 12 months. The equity price risk test assumes a sudden 10% drop in equity prices, with equity prices then staying at those levels for the next 12 months. In estimating the values of variable annuities, indexed annuities, stock market certificates, indexed universal life (“IUL”) insurance and the associated hedge assets, we assume no change in implied market volatility despite the 10% drop in equity prices.

The following tables present our estimate of the impact on pretax income from the above defined hypothetical market movements as of September 30, 2022:

Equity Price Decline 10%						Equity Price Exposure to Pretax Income
Before Hedge Impact						Hedge Impact						Net Impact
						(in millions)
Asset-based management and distribution fees (1)						$	(267)					$	2					$	(265)
DAC and DSIC amortization (2)(3)						(56)						—						(56)
Variable annuities:
GMDB and GMIB (3)						(42)						—						(42)
GMWB (3)						(554)						534						(20)
GMAB						(34)						34						—
Structured variable annuities						432						(400)						32
DAC and DSIC amortization (4)						N/A						N/A						7
Total variable annuities						(198)						168						(23)
Macro hedge program (5)						—						195						195
IUL insurance						13						(18)						(5)
Total						$	(507)					$	346					$	(154)		(6)
N/A Not Applicable.

Interest Rate Increase 100 Basis Points						Interest Rate Exposure to Pretax Income
Before Hedge Impact						Hedge Impact						Net Impact
						(in millions)
Asset-based management and distribution fees (1)						$	(51)					$	—					$	(51)
Variable annuities:
GMWB						742						(922)						(180)
GMAB						3						(5)						(2)
Structured variable annuities						(35)						177						142
DAC and DSIC amortization (4)						N/A						N/A						16
Total variable annuities						710						(750)						(24)
Macro hedge program (5)						—						(252)						(252)
Fixed annuities, fixed insurance and fixed portion of variable annuities and variable insurance products						58						—						58
Banking deposits						35						—						35
Brokerage client cash balances						160						—						160
Certificates						(5)						—						(5)
IUL insurance						16						2						18
Total						$	923					$	(1,000)					$	(61)
N/A Not Applicable.

(1) Excludes incentive income which is impacted by market and fund performance during the period and cannot be readily estimated.

(2) Market impact on DAC and DSIC amortization resulting from lower projected profits.

(3) In estimating the impact to pretax income on DAC and DSIC amortization and additional insurance benefit reserves, our assumed equity asset growth rates reflect what management would follow in its mean reversion guidelines.

(4) Market impact on DAC and DSIC amortization related to variable annuities is modeled net of hedge impact.

(5) The market impact of the macro hedge program is modeled net of any related impact to DAC and DSIC amortization.

(6) Represents the net impact to pretax income. The estimated net impact to pretax adjusted operating income is approximately $(265) million.

The above results compare to an estimated negative net impact to pretax income of $190 million related to a 10% equity price decline and an estimated positive net impact to pretax income of $80 million related to a 100 basis point increase in interest rates as of December 31, 2021. The change in interest rate exposure as of September 30, 2022 compared to December 31, 2021 was driven by additional downside rate protection added in the macro hedge program.

AMERIPRISE FINANCIAL, INC.

Net impacts shown in the above table from GMWB riders result largely from differences between the liability valuation basis and the hedging basis. Liabilities are valued using fair value accounting principles, with risk margins incorporated in contractholder behavior assumptions and with discount rates increased to reflect a current market estimate of our risk of nonperformance specific to these liabilities. Our hedging is based on our determination of economic risk, which excludes certain items in the liability valuation including the nonperformance spread risk.

Actual results will differ materially from those illustrated above as they are based on a number of estimates and assumptions. These include assuming that implied market volatility does not change when equity prices fall by 10% and that the 100 basis point increase in interest rates is a parallel shift of the yield curve. Furthermore, we have not tried to anticipate changes in client preferences for different types of assets or other changes in client behavior, nor have we tried to anticipate all strategic actions management might take to increase revenues or reduce expenses in these scenarios.

The selection of a 100 basis point interest rate increase as well as a 10% equity price decline should not be construed as a prediction of future market events. Impacts of larger or smaller changes in interest rates or equity prices may not be proportional to those shown for a 100 basis point increase in interest rates or a 10% decline in equity prices.

Fair Value Measurements

We report certain assets and liabilities at fair value; specifically, separate account assets, derivatives, embedded derivatives and most investments and cash equivalents. 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. Broker quotes are obtained when quotes from pricing services are not available. We validate prices obtained from third parties through a variety of means such as: price variance analysis, subsequent sales testing, stale price review, price comparison across pricing vendors and due diligence reviews of vendors. See Note 11 to the Consolidated Financial Statements for additional information on our fair value measurements.

Fair Value of Liabilities and Nonperformance Risk

Companies are required to measure the fair value of liabilities at the price that would be received to transfer the liability to a market participant (an exit price). Since there is not a market for our obligations of our variable annuity riders, fixed deferred indexed annuities, structured variable annuities, and IUL insurance, we consider the assumptions participants in a hypothetical market would make to reflect an exit price. As a result, we adjust the valuation of variable annuity riders, fixed deferred indexed annuities, structured annuities, and IUL insurance by updating certain contractholder assumptions, adding explicit margins to provide for risk, and adjusting the rates used to discount expected cash flows to reflect a current market estimate of our nonperformance risk. The nonperformance risk adjustment is based on observable market data adjusted to estimate the risk of our life insurance company subsidiaries not fulfilling these liabilities. Consistent with general market conditions, this estimate resulted in a spread over the U.S. Treasury curve as of September 30, 2022. As our estimate of this spread widens or tightens, the liability will decrease or increase. If this nonperformance credit spread moves to a zero spread over the U.S. Treasury curve, the reduction to future net income would be approximately $548 million, net of DAC, DSIC, unearned revenue amortization, the reinsurance accrual and income taxes (calculated at the statutory tax rate of 21%), based on September 30, 2022 credit spreads.

Liquidity and Capital Resources

Overview

We maintained substantial liquidity during the nine months ended September 30, 2022. At September 30, 2022 and December 31, 2021, we had $7.8 billion and $7.1 billion, respectively, in cash and cash equivalents excluding CIEs and other restricted cash on a consolidated basis.

At September 30, 2022 and December 31, 2021, the parent company had $760 million and $841 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 include a line of credit with an affiliate up to $729 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, 2022 was $2.0 billion which includes cash, cash equivalents, unencumbered liquid securities, the line of credit with an affiliate and a portion of the committed credit facility.

Under the terms of the committed credit facility, we can increase the availability to $1.25 billion upon satisfaction of certain approval requirements. Available borrowings under this facility are reduced by any outstanding letters of credit. At September 30, 2022, 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 remain in compliance with all such covenants at September 30, 2022.

In addition, we have access to collateralized borrowings, which may include repurchase agreements and Federal Home Loan Bank (“FHLB”) advances. Our subsidiaries, RiverSource Life Insurance Company (“RiverSource Life”), and Ameriprise Bank, FSB are members of the FHLB of Des Moines, which provides access to collateralized borrowings. As of September 30, 2022 and

AMERIPRISE FINANCIAL, INC.

December 31, 2021, we had $8.5 billion and $8.1 billion, respectively, under the FHLB facilities, of which $201 million and $200 million was outstanding as of September 30, 2022 and December 31, 2021, respectively, and is collateralized with commercial mortgage backed securities and residential mortgage backed securities.

There have been no material changes to our contractual obligations disclosed in our 2021 10-K.

We repaid $500 million principal amount of our 3.0% senior notes at maturity on March 22, 2022. We issued $500 million of 4.5% unsecured senior notes on May 13, 2022. See Note 10 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 revolver borrowings and dividends from our subsidiaries will be sufficient to fund our short-term and long-term operating liquidity needs and stress requirements.

We continue to monitor and respond to the ongoing COVID-19 pandemic. Our risk management strategy is designed to provide proactive protection during stress events such as the current pandemic. We believe our process is working as intended, and our liquidity and capital resources have remained a source of balance sheet strength during the nine months ended September 30, 2022.

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 provisions are effective beginning in 2023. We expect to be an applicable corporation required to compute CAMT; however, we have not determined if we will be liable for the CAMT in 2023. We will be a covered corporation subject to the share repurchase excise tax. We do not expect the IRA legislation to have a material impact on our consolidated financial statements. As the Internal Revenue Service issues additional guidance related to the IRA, we will continue to evaluate any impact to our consolidated financial statements.

Dividends from Subsidiaries

Ameriprise Financial is primarily a parent holding company for the operations carried out by our wholly-owned subsidiaries. Because of our holding company structure, our ability to meet our cash requirements, including the payment of dividends on our common stock, substantially depends upon the receipt of dividends or return of capital from our subsidiaries, particularly our life insurance subsidiary, RiverSource Life, our face-amount certificate subsidiary, Ameriprise Certificate Company (“ACC”), AMPF Holding, LLC, which is the parent company of our retail introducing broker-dealer subsidiary, Ameriprise Financial Services, LLC (“AFS”) and our clearing broker-dealer subsidiary, American Enterprise Investment Services, Inc. (“AEIS”), our transfer agent subsidiary, Columbia Management Investment Services Corp., our investment advisory company, Columbia Management Investment Advisers, LLC, TAM UK International Holdings Ltd., which includes Threadneedle Asset Management Holdings Sàrl and Ameriprise International Holdings GmbH within its organizational structure, and Columbia Threadneedle Investments UK International Ltd. The payment of dividends by many of our subsidiaries is restricted and certain of our subsidiaries are subject to regulatory capital requirements.

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, 2022						December 31, 2021			September 30, 2022						December 31, 2021
			(in millions)
RiverSource Life (1)(2)			$	2,998					$	3,419					N/A						$	502
RiverSource Life of New York (1)(2)			168						310						N/A						42
ACC (4)(5)			357						304						$	331					283
TAM UK International Holdings Ltd. (6)			411						330						205						248
Ameriprise Bank, FSB (4) (7)			1,397						853						946						589
AFS (3)(4)			132						103						#						#
Ameriprise Captive Insurance Company (3)			37						39						11						10
Ameriprise Trust Company (3)			52						47						36						44
AEIS (3)(4)			189						155						29						29
RiverSource Distributors, Inc. (3)(4)			11						10						#						#
Columbia Management Investment Distributors, Inc. (3)(4)			20						14						#						#
Columbia Threadneedle Investments UK International Ltd. (8)			297						348						140						170

N/A Not applicable as only required to be calculated annually.

Amounts are less than $1 million.

(1) Actual capital is determined on a statutory basis.

AMERIPRISE FINANCIAL, INC.

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

(3) Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of September 30, 2022 and December 31, 2021.

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

(5) ACC is required to hold capital in compliance with the Minnesota Department of Commerce and SEC capital requirements.

(6) Actual capital and regulatory capital requirements are determined in accordance with U.K. regulatory legislation.

(7) Regulatory capital requirement is based on minimum requirements for well capitalized banks in accordance with the Office of the Comptroller of the Currency (“OCC”).

(8) Actual capital and regulatory capital requirements are determined in accordance with U.K. regulatory legislation.

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, 2022, the parent holding company received cash dividends or a return of capital from its subsidiaries of $2.2 billion (including $600 million from RiverSource Life) and contributed cash to its subsidiaries of $512 million (including $375 million to Ameriprise Bank, FSB). During the nine months ended September 30, 2021, the parent holding company received cash dividends or a return of capital from its subsidiaries of $3.0 billion (including $1.7 billion from RiverSource Life) and contributed cash to its subsidiaries of $158 million (including $42 million to Ameriprise Bank, FSB).

In 2009, RiverSource Life established an agreement to protect its exposure to Genworth Life Insurance Company (“GLIC”) for its reinsured LTC. In 2016, substantial enhancements to this reinsurance protection agreement were finalized. The terms of these confidential provisions within the agreement have been shared, in the normal course of regular reviews, with our domiciliary regulator and rating agencies. GLIC is domiciled in Delaware, so in the event GLIC was subjected to rehabilitation or insolvency proceedings, such proceedings would be located in (and governed by) Delaware laws. Delaware courts have a long tradition of respecting commercial and reinsurance affairs as well as contracts among sophisticated parties. Similar credit protections to what we have with GLIC have been tested and respected in Delaware and elsewhere in the United States, and as a result we believe our credit protections would be respected even in the unlikely event that GLIC becomes subject to rehabilitation or insolvency proceedings in Delaware. Accordingly, while no credit protections are perfect, we believe the correct way to think about the risks represented by our counterparty credit exposure to GLIC is not the full amount of the gross liability that GLIC reinsures, but a much smaller net exposure to GLIC (if any that might exist after taking into account our credit protections). Thus, management believes that our agreement and offsetting non-LTC legacy arrangements with Genworth will enable RiverSource Life to recover on all net exposure in all material respects in the event of a rehabilitation or insolvency of GLIC.

Dividends Paid to Shareholders and Share Repurchases

We paid regular quarterly dividends to our shareholders totaling $416 million and $396 million for the nine months ended September 30, 2022 and 2021, respectively. On October 25, 2022, we announced a quarterly dividend of $1.25 per common share. The dividend will be paid on November 18, 2022 to our shareholders of record at the close of business on November 7, 2022.

In January 2022, the Company’s Board of Directors authorized us to repurchase up to $3.0 billion for the repurchase of the Company’s common stock through March 31, 2024. As of September 30, 2022, we had $2.1 billion remaining under the share repurchase authorization. We intend to fund share repurchases through existing working capital, future earnings and other customary financing methods. The share repurchase program does not require the purchase of any minimum number of shares, and depending on market conditions and other factors, these purchases may be commenced or suspended at any time without prior notice. 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, 2022, we repurchased a total of 5.0 million shares of our common stock at an average price of $274.55 per share.

Cash Flows

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. Cash held by CIEs is not available for general use by Ameriprise Financial, nor is Ameriprise Financial cash available for general use by its CIEs. Cash and cash equivalents segregated under federal and other regulations is held for the exclusive benefit of our brokerage customers and is not available for general use by Ameriprise Financial.

Operating Activities

Net cash provided by operating activities increased $1.4 billion to $3.2 billion for the nine months ended September 30, 2022 compared to $1.8 billion for the prior year period primarily reflecting a $755 million increase in derivatives, net of collateral, a $500 million decrease in income taxes paid, and a $332 million increase in deferred acquisition costs, partially offset by a $560 million decrease in accounts payable and accrued expenses.

AMERIPRISE FINANCIAL, INC.

Investing Activities

Our investing activities primarily relate to our Available-for-Sale investment portfolio. Further, this activity is significantly affected by the net flows of our investment certificate, fixed annuity and universal life products reflected in financing activities.

Net cash used in investing activities increased $7.9 billion to $9.2 billion for the nine months ended September 30, 2022 compared to $1.4 billion for the prior year period primarily reflecting a $5.4 billion increase in cash used for purchases of Available-for-Sale securities, and a $3.1 billion decrease in proceeds from maturities, sinking fund payments and calls of Available-for-Sale securities.

Financing Activities

Net cash provided by financing activities increased $6.0 billion to $6.2 billion for the nine months ended September 30, 2022 compared to $259 million for the prior year period primarily reflecting a $4.8 billion increase in banking deposits, a $2.2 billion increase in net cash flows from investment certificates and $491 million increase in issuance of long-term debt, partially offset by a $1 billion decrease in borrowings by CIEs and a $501 million increase in repayments of long-term debt.

Forward-Looking Statements

This report contains forward-looking statements that reflect management’s plans, estimates and beliefs. Actual results could differ materially from those described in these forward-looking statements. Examples of such forward-looking statements include:

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

• statements about the expected trend in the shift to lower-risk products, including the exit from variable annuities with living benefit riders and the discontinuance of new sales of universal life insurance with secondary guarantees;

• statements about the outcomes from the application to convert Ameriprise Bank, FSB to a state-chartered bank and national trust bank or the anticipated deposit growth or impacts from possible future interest rate increases;

• 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; and

• statements of assumptions underlying such statements.

The words “believe,” “expect,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “forecast,” “on track,” “project,” “continue,” “able to remain,” “resume,” “deliver,” “develop,” “evolve,” “drive,” “enable,” “flexibility,” “scenario,” “case”, “appear”, “expand” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from such statements.

Such factors include, but are not limited to:

• the impacts on our business of the COVID-19 pandemic and the related economic, client, governmental and healthcare system responses;

• market fluctuations and general economic and political factors, including volatility in the U.S. and global market conditions, client behavior and volatility in the markets for our products;

• changes in interest rates and periods of low interest rates;

• adverse capital and credit market conditions or any downgrade in our credit ratings;

• effects of competition and our larger competitors’ economies of scale;

• declines in our investment management performance;

• our ability to compete in attracting and retaining talent, including financial advisors;

• impairment, negative performance or default by financial institutions or other counterparties;

• the ability to maintain our unaffiliated third-party distribution channels and the impacts of sales of unaffiliated products;

• changes in valuation of securities and investments included in our assets;

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

• the illiquidity of our investments;

• effects of the elimination of LIBOR on, and value of, securities and other assets and liabilities tied to LIBOR;

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

• failures or defaults by counterparties to our reinsurance arrangements;

• 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;

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

AMERIPRISE FINANCIAL, INC.

• interruptions or other failures in our operating systems and networks, including errors or failures caused by third-party service providers, interference or third-party attacks;

• interruptions or other errors in our telecommunications or data processing systems;

• identification and mitigation of risk exposure in market environments, new products, vendors and other types of risk;

• ability of our subsidiaries to transfer funds to us to pay dividends;

• changes in exchange rates and other risks in connection with our international operations and earnings and income generated overseas;

• occurrence of natural or man-made disasters and catastrophes;

• risks in acquisition transactions, such as the integration of the BMO Global Asset Management (EMEA) business, or other potential strategic acquisitions or divestitures;

• legal and regulatory actions brought against us;

• changes to laws and regulations that govern operation of our business;

• supervision by bank regulators and related regulatory and prudential standards as a savings and loan holding company that may limit our activities and strategies;

• changes in corporate tax laws and regulations and interpretations and determinations of tax laws impacting our products;

• protection of our intellectual property and claims we infringe the intellectual property of others; and

• changes in and the adoption of new accounting standards.

Management cautions the reader that the foregoing list of factors is not exhaustive. There may also be other risks that management is unable to predict at this time that may cause actual results to differ materially from those in forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Management undertakes no obligation to update publicly or revise any forward-looking statements. The foregoing list of factors should be read in conjunction with the “Risk Factors” discussion included in Part I, Item 1A of our 2021 10-K.

Ameriprise Financial announces financial and other information to investors through the Company’s investor relations website at ir.ameriprise.com, as well as SEC filings, press releases, public conference calls and webcasts. Investors and others interested in the company are encouraged to visit the investor relations website from time to time, as information is updated and new information is posted. 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.