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, 2022, filed with the Securities and Exchange Commission (“SEC”) on February 23, 2023 (“2022 10-K”), as well as our quarterly reports on Form 10-Q and current reports on Form 8-K. 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 $1.3 trillion in assets under management and administration as of June 30, 2023. 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 2022 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 values of market risk 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 long-duration contract reserves, 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.”

On July 13, 2023, we announced that we have withdrawn our application to convert Ameriprise Bank, FSB (“Ameriprise Bank”) to a state-chartered industrial bank and our application to establish a new limited purpose national trust bank. Ameriprise Bank will continue to operate as it does today, regulated by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. These changes are not expected to impact our long-term growth strategy for Ameriprise Bank and we will continue to offer 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 5 to our Consolidated Financial Statements. The results of operations of the CIEs are reflected in the Corporate & Other 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 earnings measures, which exclude net realized investment gains or losses, net of 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 reinsurance accrual; mean reversion related impacts (the impact on variable universal life (“VUL”) products for the difference between assumed and updated separate account investment

AMERIPRISE FINANCIAL, INC.

performance on the 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 impact; 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.

The market impact on non-traditional long-duration products includes changes in market risk benefits and embedded derivative values caused by changes in financial market conditions, net of changes in economic hedge values and unhedged items including the difference between assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and certain policyholder contract elections. The market impact also includes certain valuation adjustments made in accordance with FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosures, including the impact on embedded derivative values of discounting projected benefits to reflect a current estimate of our life insurance subsidiary’s nonperformance spread.

In the first quarter of 2023, management introduced an adjusted capital measure (“Available Capital for Capital Adequacy”), which management believes best reflects the available capital resources of our core operations and facilitates a meaningful trend analysis. Available Capital for Capital Adequacy adjusts GAAP total equity and excludes accumulated other comprehensive income (“AOCI”); goodwill and intangibles; RiverSource Life Insurance Company’s GAAP equity excluding AOCI; and includes RiverSource Life Insurance Company’s statutory total adjusted capital prepared in conformity with accounting practices prescribed or permitted by the State of Minnesota Department of Commerce; and other adjustments, primarily certain deferred tax balances.

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

Concurrent with the adoption of ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts, management no longer excludes adjustments for deferred acquisition costs (“DAC”), deferred sales inducement costs (“DSIC”) and unearned revenue amortization from adjusted operating earnings measures. Amortization of DAC, DSIC, and unearned revenue is no longer impacted by markets and is now amortized on a constant-level basis in accordance with GAAP.

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 of over 30%.

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

															Per Diluted Share
			Three Months Ended June 30,												Three Months Ended June 30,
			2023						2022			2023						2022
			(in millions, except per share amounts)
Net income (loss)			$	890					$	614					$	8.21					$	5.37
Adjustments:
Net realized investment gains (losses) (1)			3						(14)						0.03						(0.12)
Market impact on non-traditional long-duration products (1)			127						(19)						1.17						(0.17)
Mean reversion related impacts (1)			—						(2)						—						(0.02)
Integration/restructuring charges (1)			(25)						(14)						(0.23)						(0.12)
Net income (loss) attributable to CIEs			—						(1)						—						(0.01)
Tax effect of adjustments (2)			(22)						10						(0.20)						0.09
Adjusted operating earnings			$	807					$	654					$	7.44					$	5.72
Weighted average common shares outstanding:
Basic			106.4						112.3
Diluted			108.4						114.4

AMERIPRISE FINANCIAL, INC.

															Per Diluted Share
			Six Months Ended June 30,												Six Months Ended June 30,
			2023						2022			2023						2022
			(in millions, except per share amounts)
Net income (loss)			$	1,307					$	1,439					$	11.97					$	12.48
Adjustments:
Net realized investment gains (losses) (1)			6						2						0.05						0.02
Market impact on non-traditional long-duration products (1)			(348)						161						(3.19)						1.40
Mean reversion related impacts (1)			—						(2)						—						(0.02)
Integration/restructuring charges (1)			(35)						(24)						(0.32)						(0.21)
Net income (loss) attributable to CIEs			—						1						—						0.01
Tax effect of adjustments (2)			79						(29)						0.73						(0.26)
Adjusted operating earnings			$	1,605					$	1,330					$	14.70					$	11.54
Weighted average common shares outstanding:
Basic			107.1						113.0
Diluted			109.2						115.3

(1) Pretax adjusted operating adjustments.

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

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

			Twelve Months Ended June 30,
2023						2022
(in millions)
Net income			$	3,017					$	3,065
Less: Adjustments (1)			(143)						409
Adjusted operating earnings			3,160						2,656
Total Ameriprise Financial, Inc. shareholders’ equity			3,943						4,639
Less: AOCI, net of tax			(2,259)						(881)
Total Ameriprise Financial, Inc. shareholders’ equity, excluding AOCI			6,202						5,520
Less: Equity impacts attributable to CIEs			(2)						2
Adjusted operating equity			$	6,204					$	5,518

Return on equity, excluding AOCI			48.6		%				55.5		%
Adjusted operating return on equity, excluding AOCI (2)			50.9		%				48.1		%

(1) Adjustments reflect the sum of after-tax net realized investment gains/losses, net of 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 reinsurance accrual; mean reversion related impacts; block transfer reinsurance transaction impacts; the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments; 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%.

AMERIPRISE FINANCIAL, INC.

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

			June 30, 2023						December 31, 2022
			(in millions)
Ameriprise Financial, Inc. GAAP total equity			$	4,080					$	3,803
Less: AOCI			(2,349)						(2,546)
Ameriprise Financial, Inc. GAAP total equity, excluding AOCI			6,429						6,349
Less: RiverSource Life Insurance Company GAAP equity, excluding AOCI			1,855						2,057
Add: RiverSource Life Insurance Company statutory total adjusted capital			2,653						3,103
Less: Goodwill and intangibles			2,525						2,485
Add: Other adjustments			309						299
Available Capital for Capital Adequacy			$	5,011					$	5,209

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. The accounting and reporting policies and estimates we have identified as fundamental to a full understanding of our consolidated results of operations and financial condition are described below. See Note 2 to our Consolidated Financial Statements for further information about our accounting policies.

Valuation of Investments

The most significant component of our investments is our Available-for-Sale securities, which we carry at fair value within our Consolidated Balance Sheets. See Note 13 to our Consolidated Financial Statements for discussion of the fair value of our Available-for-Sale securities. Financial markets are subject to significant movements in valuation and liquidity, which can impact our ability to liquidate and the selling price that can be realized for our securities and increases the use of judgment in determining the estimated fair value of certain investments. We are unable to predict impacts and determine sensitivities in reported amounts reflecting such market movements on our aggregate Available-for-Sale portfolio. Changes to these assumptions do not occur in isolation and it is impracticable to predict such impacts at the individual security unit of measure which are predominately Level 2 fair value and based on observable inputs.

Market Risk Benefits

Market risk benefits are contracts or contract features that both provide protection to the contractholder from other-than-nominal capital market risk and expose us to other-than-nominal capital market risk. Market risk benefits include certain contract features on variable annuity products that provide minimum guarantees to policyholders. Guarantees accounted for as market risk benefits include guaranteed minimum death benefits (“GMDB”), guaranteed minimum income benefits (“GMIB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum accumulation benefits (“GMAB”).

Variable Annuities

We have approximately $79 billion of variable annuity account value that has been issued over a period of more than fifty years. The diversified variable annuity block consists of $35 billion of account value with no living benefit guarantees and $44 billion of account value with living benefit guarantees, primarily GMWB provisions. The business is predominately issued through the Ameriprise Financial® advisor network. The majority of the variable annuity contracts offered by us contain GMDB provisions. We discontinued most new sales of GMWB and GMAB at the end of 2021 and new sales were completely discontinued as of mid-2022. We also previously offered contracts containing GMIB provisions. See Note 11 to our Consolidated Financial Statements for further discussion of our variable annuity contracts.

In determining the liabilities for market risk benefits, we project these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency, benefit utilization and investment margins. Management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year.

In addition, the valuation of market risk benefits is impacted by an estimate of our nonperformance risk adjustment. This estimate includes a spread over the U.S. Treasury curve as of the balance sheet date. As our estimate of this spread over the U.S. Treasury curve widens or tightens, the liability will decrease or increase. The change in fair value due to changes in our nonperformance risk is recorded in other comprehensive income.

AMERIPRISE FINANCIAL, INC.

Regarding the exposure to variable annuity living benefit guarantees, the source of behavioral risk is driven by changes in policyholder surrenders and utilization of guaranteed withdrawal benefits. We have extensive experience studies and analysis to monitor changes and trends in policyholder behavior. A significant volume of company-specific policyholder experience data is available and provides management with the ability to regularly analyze policyholder behavior. On a monthly basis, actual surrender and benefit utilization experience is compared to expectations. Experience data includes detailed policy information providing the opportunity to review impacts of multiple variables. The ability to analyze differences in experience, such as presence of a living benefit rider, existence of surrender charges, and tax qualifications provide us an effective approach in quickly detecting changes in policyholder behavior.

At least annually, we perform a thorough policyholder behavior analysis to validate the assumptions included in our market risk benefit reserves. The variable annuity assumptions and resulting reserve computations reflect multiple policyholder variables. Differentiation in assumptions by policyholder age, existence of surrender charges, guaranteed withdrawal utilization, and tax qualification are examples of factors recognized in establishing management’s assumptions used in reserve calculations. The extensive data derived from our variable annuity block informs management in confirming previous assumptions and revising the variable annuity behavior assumptions. Changes in assumptions are governed by a review and approval process to ensure an appropriate measurement of all impacted financial statement balances. Changes in these assumptions can be offsetting and we are unable to predict their movement, sensitivities in reported amounts, offsetting impacts, or future impacts to the Consolidated Financial Statements over time or in any given future period.

Future Policy Benefits and Claims

We establish reserves to cover the benefits associated with non-traditional and traditional long-duration products. Non-traditional long-duration products include variable and structured variable annuity contracts, fixed annuity contracts and UL and VUL policies. Traditional long-duration products include term life insurance, whole life insurance, disability income (“DI”) and long term care (“LTC”) insurance and life contingent payout annuity products.

The establishment of reserves is an estimation process using a variety of methods, assumptions and data elements. If actual experience is better than or equal to the results of the estimation process, then reserves should be adequate to provide for future benefits and expenses. If actual experience is worse than the results of the estimation process, additional reserves may be required.

Non-Traditional Long-Duration Products, including Embedded Derivatives

UL and VUL

A portion of our UL and VUL policies have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The liability for these future losses is determined at the reporting date using actuarial models to estimate the death benefits in excess of account value and recognizing the excess over the estimated life based on expected assessments (e.g. cost of insurance charges, contractual administrative charges, similar fees and investment margin). Significant assumptions made in projecting future benefits and assessments relate to client asset value growth rates, mortality, persistency and investment margins. Changes in these assumptions can be offsetting and we are unable to predict their movement, sensitivities in reported amounts, offsetting impacts, or future impacts to the Consolidated Financial Statements over time or in any given future period. See Note 9 to our Consolidated Financial Statements for information regarding the liability for contracts with secondary guarantees.

Embedded Derivatives

The fair value of embedded derivatives related to structured variable annuities, indexed annuities and IUL fluctuates based on equity markets and interest rates and is a liability. In addition, the valuation of embedded derivatives is impacted by an estimate of our nonperformance risk adjustment. This estimate includes a spread over the U.S. Treasury curve as of the balance sheet date. As our estimate of this spread over the U.S. Treasury curve widens or tightens, the liability will decrease or increase.

See Note 13 to our Consolidated Financial Statements for information regarding the fair value measurement of embedded derivatives.

Traditional Long-Duration Products

The liabilities for traditional long-duration products include cash flows related to unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life, DI, LTC, and life contingent payout annuity policies as claims are incurred in the future. Accordingly, the claim liability (also referred to as disabled life reserves) is presented together as one liability for future policy benefits.

A liability for future policy benefits, which is the present value of estimated future policy benefits to be paid to or on behalf of policyholders and certain related expenses less the present value of estimated future net premiums to be collected from policyholders, is accrued as premium revenue is recognized. Expected insurance benefits are accrued over the life of the contract in proportion to premium revenue recognized (referred to as the net premium approach). The net premium ratio reflects cash flows from contract inception to contract termination (i.e., through the claim paying period) and cannot exceed 100%.

AMERIPRISE FINANCIAL, INC.

The liability for future policy benefits will be updated for actual experience at least on an annual basis and concurrent with changes to cash flow assumptions. When net premiums are updated for cash flow changes, the estimated cash flows over the entire life of a group of contracts are updated using historical experience and updated future cash flow assumptions.

The cash flows used in the calculation are discounted using the forward rate curve on the original contract issue date. The discount rate represents an upper-medium-grade (i.e., low credit risk) fixed-income instrument yield (i.e., an A rating) that reflects the duration characteristics of the liability.

Derivative Instruments and Hedging Activities

We use derivative instruments to manage our exposure to various market risks. All derivatives are recorded at fair value. The fair value of our derivative instruments is determined using either market quotes or valuation models that are based upon the net present value of estimated future cash flows and incorporate current market observable inputs to the extent available. We are unable to predict impacts and determine sensitivities in reported amounts reflecting such market movements on our aggregate derivative portfolio. Changes to assumptions do not occur in isolation and it is impracticable to predict such impacts at the individual security unit of measure which are predominately Level 2 fair value and based on observable inputs.

For further details on the types of derivatives we use and how we account for them, see Note 2, Note 13 and Note 15 to our Consolidated Financial Statements. For discussion of our market risk exposures and hedging program and related sensitivity testing, see Item 3. “Quantitative and Qualitative Disclosures About Market Risk.”

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 3 to our Consolidated Financial Statements.

Economic Environment

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

			Three Months Ended June 30,																		Six Months Ended June 30,
2023						2022			Change						2023						2022			Change
S&P 500
Daily average			4,207						4,110						2%						4,103						4,288						(4)%
Period end			4,450						3,785						18%						4,450						3,785						18%
Weighted Equity Index (“WEI”) (1)
Daily average			2,769						2,707						2%						2,716						2,829						(4)%
Period end			2,900						2,491						16%						2,900						2,491						16%

(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 2022 10-K.

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.

AMERIPRISE FINANCIAL, INC.

The following table presents detail regarding our AUM and AUA:

			June 30,												Change
2023						2022
(in billions)
Assets Under Management and Administration
Advice & Wealth Management AUM			$	451.2					$	396.3					$	54.9					14		%
Asset Management AUM			616.6						598.2						18.4						3
Corporate AUM			0.3						0.2						0.1						50
Eliminations			(39.3)						(37.5)						(1.8)						(5)
Total Assets Under Management			1,028.8						957.2						71.6						7
Total Assets Under Administration			248.0						212.9						35.1						16
Total AUM and AUA			$	1,276.8					$	1,170.1					$	106.7					9		%

Total AUM increased $71.6 billion, or 7%, to $1.0 trillion as of June 30, 2023 compared to $957.2 billion as of June 30, 2022 due to a $54.9 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $18.4 billion increase in Asset Management AUM primarily driven by equity market appreciation, partially offset by net outflows and fixed income market depreciation. See our segment results of operations discussion below for additional information on changes in our AUM.

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Consolidated Results of Operations for the Three Months Ended June 30, 2023 and 2022

The following table presents our consolidated results of operations:

			Three Months Ended June 30,												Change
			2023						2022
			(in millions)
Revenues
Management and financial advice fees			$	2,199					$	2,277					$	(78)					(3)		%
Distribution fees			482						459						23						5
Net investment income			811						287						524						NM
Premiums, policy and contract charges			383						342						41						12
Other revenues			132						124						8						6
Total revenues			4,007						3,489						518						15
Banking and deposit interest expense			131						3						128						NM
Total net revenues			3,876						3,486						390						11
Expenses
Distribution expenses			1,248						1,239						9						1
Interest credited to fixed accounts			161						145						16						11
Benefits, claims, losses and settlement expenses			327						(196)						523						NM
Remeasurement (gains) losses of future policy benefit reserves			—						1						(1)						NM
Change in fair value of market risk benefits			(99)						519						(618)						NM
Amortization of deferred acquisition costs			61						67						(6)						(9)
Interest and debt expense			84						44						40						91
General and administrative expense			967						894						73						8
Total expenses			2,749						2,713						36						1
Pretax income			1,127						773						354						46
Income tax provision			237						159						78						49
Net income			$	890					$	614					$	276					45		%
NM Not Meaningful.

Overall

Pretax income increased $354 million, or 46%, for the three months ended June 30, 2023 compared to the prior year period. The following impacts were significant drivers of the period-over-period change in pretax income:

• A favorable impact from the recent trend in rising interest rates on the investment portfolio yield, including from investment portfolio repositioning in our insurance business in the fourth quarter of 2022, along with higher balances in bank and certificate products.

• The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was a benefit of $127 million for the three months ended June 30, 2023 compared to an expense of $19 million for the prior year period.

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

Net Revenues

Management and financial advice fees decreased $78 million, or 3%, for the three months ended June 30, 2023 compared to the prior year period reflecting fixed income market depreciation and the cumulative impact of Asset Management outflows, partially offset by wrap account net inflows.

Distribution fees increased $23 million, or 5%, for the three months ended June 30, 2023 compared to the prior year period primarily due to higher fees on off-balance sheet brokerage cash due to an increase in short-term interest rates.

Net investment income increased $524 million, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the following items:

• The favorable impact of growth in Ameriprise Bank customer deposits and certificate business as a result of the market environment and our strategic decision to invest in these businesses.

• The favorable impact of the recent trend in rising interest rates on the investment portfolio yield, including from investment portfolio repositioning in our insurance business in the fourth quarter of 2022.

AMERIPRISE FINANCIAL, INC.

• The favorable impact of net realized investment gains of $6 million for the three months ended June 30, 2023 compared to net realized investment losses of $15 million for the prior year period. Net realized investment losses for three months ended June 30, 2022 were primarily driven by the fixed maturity investment portfolio repositioning in response to market conditions.

• The favorable impact of higher net investment income of CIEs.

Premiums, policy and contract charges increased $41 million, or 12%, for the three months ended June 30, 2023 compared to the prior year period primarily due to higher sales of life contingent payout annuities.

Banking and deposit interest expense increased $128 million, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and Ameriprise Bank cash deposits.

Expenses

Interest credited to fixed accounts increased $16 million, or 11%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the following items:

• A $54 million increase in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits. The unfavorable impact of the nonperformance credit spread was $22 million for the three months ended June 30, 2023 compared to a favorable impact of $32 million for the prior year period.

• A $38 million decrease in expense from other market impacts on IUL benefits, net of hedges, which was a benefit of $15 million for the three months ended June 30, 2023 compared to an expense of $23 million for the prior year period. The decrease in expense was primarily due to an increase in the IUL embedded derivative in the prior period, which reflected higher option costs due to a higher new money rate, partially offset by less discounting due to higher Treasury rates.

Benefits, claims, losses and settlement expenses increased $523 million, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the following items:

• A $422 million increase in expense from market impacts on structured variable annuities (“SVA”) embedded derivative, net of hedges in place to offset those risks. This increase was the result of a favorable $632 million change in the market impact on derivatives hedging the SVA embedded derivative and an unfavorable $1.1 billion change in the market impact on SVA embedded derivative. The main market driver contributing to these changes was the equity market impact on the SVA embedded derivative net of the impact on the corresponding hedge assets resulted in an expense for the three months ended June 30, 2023 compared to a benefit in the prior year period.

• The impact of higher sales of life contingent payout annuities.

• The impact of increased volume in SVAs.

Change in fair value of market risk benefits decreased $618 million, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the following item:

• A $611 million decrease in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks. This decrease was the result of a favorable $1.5 billion change in the market impact on variable annuity guaranteed benefits reserves, partially offset by an unfavorable $865 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits. The main market drivers contributing to these changes are summarized below:

• Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the three months ended June 30, 2023 compared to an expense for the prior year period.

• Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower benefit for the three months ended June 30, 2023 compared to the prior year period.

• Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the three months ended June 30, 2023 compared to the prior year period.

• Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a lower net expense for the three months ended June 30, 2023 compared to the prior year period.

Interest and debt expense increased $40 million, or 91%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting higher interest expense of CIEs and the issuance of $750 million of unsecured senior notes in March 2023.

General and administrative expense increased $73 million, or 8%, for the three months ended June 30, 2023 compared to the prior year period primarily due to higher volume related expenses and investments for business growth, $11 million of higher integration related expenses and an unfavorable change in the mark-to-market impact on share-based compensation. A portion of the higher integration related expenses was driven by the consolidation of the majority of our London-based teams into a single location following the acquisition of the BMO Global Asset Management (EMEA) business.

AMERIPRISE FINANCIAL, INC.

Income Taxes

Our effective tax rate was 21.1% for the three months ended June 30, 2023 compared to 20.6% for the prior year period. See Note 17 to our Consolidated Financial Statements for additional discussion on income taxes.

Results of Operations by Segment for the Three Months Ended June 30, 2023 and 2022

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 20 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 June 30,
2023						2022
(in millions)
Advice & Wealth Management
Net revenues			$	2,343					$	2,056
Expenses			1,612						1,564
Adjusted operating earnings			$	731					$	492
Asset Management
Net revenues			$	808					$	881
Expenses			646						659
Adjusted operating earnings			$	162					$	222
Retirement & Protection Solutions
Net revenues			$	858					$	760
Expenses			669						592
Adjusted operating earnings			$	189					$	168
Corporate & Other
Net revenues			$	148					$	119
Expenses			208						178
Adjusted operating loss			$	(60)					$	(59)

Advice & Wealth Management

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

			2023						2022
(in billions)
Beginning balance			$	434.7					$	447.0
Net flows			5.7						6.1
Market appreciation (depreciation) and other			14.3						(53.8)
Ending balance			$	454.7					$	399.3
Advisory wrap account assets ending balance (1)			$	449.9					$	395.1
Average advisory wrap account assets (2)			$	431.9					$	425.6

(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 June 30, 2023 and 2022.

Ending wrap account assets increased $20.0 billion, or 5%, to $454.7 billion during the three months ended June 30, 2023 due to market appreciation of $14.3 billion and net inflows of $5.7 billion. Average advisory wrap account assets increased $6.3 billion, or 1%, compared to the prior year period primarily reflecting net inflows.

AMERIPRISE FINANCIAL, INC.

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

			Three Months Ended June 30,												Change
			2023						2022
			(in millions)
Revenues
Management and financial advice fees			$	1,354					$	1,340					$	14					1		%
Distribution fees			569						542						27						5
Net investment income			483						120						363						NM
Other revenues			68						57						11						19
Total revenues			2,474						2,059						415						20
Banking and deposit interest expense			131						3						128						NM
Total net revenues			2,343						2,056						287						14
Expenses
Distribution expenses			1,196						1,185						11						1
Interest and debt expense			6						3						3						NM
General and administrative expense			410						376						34						9
Total expenses			1,612						1,564						48						3
Adjusted operating earnings			$	731					$	492					$	239					49		%
NM Not Meaningful.

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $239 million, or 49%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting a benefit from higher short-term interest rates and growth in investments supporting the bank cash deposits and certificate products along with higher average wrap account balances due to net inflows. Pretax adjusted operating margin increased to 31.2% for the three months ended June 30, 2023 compared to 23.9% for the prior year period, reflecting the benefit of higher short-term interest rates.

Ameriprise Bank is continuing its deposit growth trend, with cash sweep balances increasing $5.4 billion from the prior year period to $20.9 billion as of June 30, 2023. Profitability at the bank increased compared to the prior year period primarily reflecting increased interest rates along with the trend in deposit growth. The Ameriprise Certificate Company experienced strong growth in the current interest rate environment with client deposits increasing $6.8 billion from the prior year period to $12.1 billion.

Net Revenues

Management and financial advice fees increased $14 million, or 1%, for the three months ended June 30, 2023 compared to the prior year period primarily due to growth in average wrap account assets. Average advisory wrap account assets increased $6.3 billion, or 1%, compared to the prior year period primarily reflecting net inflows.

Distribution fees increased $27 million, or 5%, for the three months ended June 30, 2023 compared to the prior year period reflecting higher fees on off-balance sheet brokerage cash due to an increase in short-term interest rates.

Net investment income, which excludes net realized investment gains or losses, increased $363 million, for the three months ended June 30, 2023 compared to the prior year period primarily due to higher average invested assets due to growth in bank cash deposits and certificate products and the favorable impact of increasing short-term interest rates, including higher investment yields on the investment portfolios supporting the products.

Banking and deposit interest expense increased $128 million, for the three months ended June 30, 2023 compared to the prior year period primarily due to higher average crediting rates and higher average volumes on certificates and bank cash deposits.

Expenses

General and administrative expense increased $34 million, or 9%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting higher volume related expenses and investing for business growth.

AMERIPRISE FINANCIAL, INC.

Asset Management

The following tables present the mutual fund performance of our retail Columbia Threadneedle Investments funds as of June 30, 2023:

Retail Fund Rankings in Top 2 Quartiles or Above Index Benchmark - Asset Weighted (1)			1 year			3 year			5 year			10 year
Equity			68%			67%			77%			87%
Fixed Income			47%			70%			75%			86%
Asset Allocation			65%			51%			75%			90%
4- or 5-star Morningstar rated funds (2)			Overall			3 year			5 year			10 year
Number of rated funds			115			73			93			105
Percent of rated assets			64%			29%			54%			68%

(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 based on the Primary Share Class. Comparison to Index 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 100 Columbia funds rated (based on primary share class), 2 received a 5-star Overall Rating and 40 received a 4-star Overall Rating. Out of 151 Threadneedle funds rated (based on highest-rated share class), 13 received a 5-star Overall Rating and 60 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.

The following table presents global managed assets by type:																											Average (1)												Change
			As of June 30,												Change									Three Months Ended June 30,
2023						2022						2023						2022
			(in billions)
Equity			$	316.1					$	306.0					$	10.1					3		%				$	309.6					$	336.7					$	(27.1)					(8)		%
Fixed income			225.5						216.5						9.0						4						223.8						235.6						(11.8)						(5)
Money market			22.4						19.3						3.1						16						22.9						16.5						6.4						39
Alternative			35.1						38.4						(3.3)						(9)						34.9						39.4						(4.5)						(11)
Hybrid and other			17.5						18.0						(0.5)						(3)						17.1						19.5						(2.4)						(12)
Total managed assets			$	616.6					$	598.2					$	18.4					3		%				$	608.3					$	647.7					$	(39.4)					(6)		%

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

AMERIPRISE FINANCIAL, INC.

The following table presents the changes in global managed assets:

			Three Months Ended June 30,
2023						2022
(in billions)
Global Retail Funds
Beginning assets			$	321.4					$	380.0
Inflows			11.5						15.5
Outflows			(16.3)						(23.8)
Net VP/VIT fund flows			(1.2)						(1.0)
Net new flows			(6.0)						(9.3)
Reinvested dividends			1.2						3.5
Net flows			(4.8)						(5.8)
Distributions			(1.6)						(3.8)
Acquired assets (1)			—						—
Market appreciation (depreciation) and other			10.0						(43.1)
Foreign currency translation (1)			2.4						(4.3)
Total ending assets			327.4						323.0
Global Institutional
Beginning assets			286.3						318.6
Inflows (2)			11.6						16.1
Outflows (2)			(12.1)						(13.4)
Net flows			(0.5)						2.7
Acquired assets (1)			—						—
Market appreciation (depreciation) and other (3)			(1.9)						(36.4)
Foreign currency translation (1)			5.3						(9.7)
Total ending assets			289.2						275.2
Total managed assets			$	616.6					$	598.2
Total net flows			$	(5.3)					$	(3.1)
Legacy insurance partners net flows (4)			$	(1.4)					$	(1.2)

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

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

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

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

Total segment AUM increased $8.9 billion, or 1%, during the three months ended June 30, 2023 primarily due to equity market appreciation, partially offset by fixed income market depreciation and net outflows. Net outflows were $5.3 billion in the second quarter of 2023, a $2.2 billion decrease 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:

			Three Months Ended June 30,												Change
			2023						2022
			(in millions)
Revenues
Management and financial advice fees			$	699					$	777					$	(78)					(10)		%
Distribution fees			90						100						(10)						(10)
Net investment income			10						—						10						-
Other revenues			9						4						5						NM
Total revenues			808						881						(73)						(8)
Banking and deposit interest expense			—						—						—						-
Total net revenues			808						881						(73)						(8)
Expenses
Distribution expenses			233						252						(19)						(8)
Amortization of deferred acquisition costs			2						3						(1)						(33)
Interest and debt expense			1						1						—						-
General and administrative expense			410						403						7						2
Total expenses			646						659						(13)						(2)
Adjusted operating earnings			$	162					$	222					$	(60)					(27)		%
NM Not Meaningful.

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, decreased $60 million, or 27%, for the three months ended June 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows and lower average fixed income markets, partially offset by equity market appreciation.

Net Revenues

Management and financial advice fees decreased $78 million, or 10%, for the three months ended June 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows and lower average fixed income markets, partially offset by higher average equity markets.

Distribution fees decreased $10 million, or 10%, for the three months ended June 30, 2023 compared to the prior year period reflecting the cumulative impact from net outflows.

Net investment income increased $10 million, for the three months ended June 30, 2023 compared to the prior year period primarily driven by higher interest rates.

Expenses

Distribution expenses decreased $19 million, or 8%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the cumulative impact from net outflows.

General and administrative expense increased $7 million, or 2%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the unfavorable change in the mark-to-market impact on share-based compensation expense.

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 June 30,												Change
2023						2022
(in millions)
Revenues
Management and financial advice fees			$	185					$	197					$	(12)					(6)		%
Distribution fees			100						107						(7)						(7)
Net investment income			203						124						79						64
Premiums, policy and contract charges			368						328						40						12
Other revenues			2						4						(2)						(50)
Total revenues			858						760						98						13
Banking and deposit interest expense			—						—						—						-
Total net revenues			858						760						98						13
Expenses
Distribution expenses			120						118						2						2
Interest credited to fixed accounts			94						96						(2)						(2)
Benefits, claims, losses and settlement expenses			188						108						80						74
Remeasurement (gains) losses of future policy benefit reserves			(4)						(3)						(1)						(33)
Change in fair value of market risk benefits			123						129						(6)						(5)
Amortization of deferred acquisition costs			57						61						(4)						(7)
Interest and debt expense			12						9						3						33
General and administrative expense			79						74						5						7
Total expenses			669						592						77						13
Adjusted operating earnings			$	189					$	168					$	21					13		%

Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $21 million, or 13%, for the three months ended June 30, 2023 compared to prior year period.

Variable annuity account balances increased 4% to $78.5 billion as of June 30, 2023 compared to the prior year period due to market appreciation, partially offset by net outflows of $2.6 billion. Variable annuity sales decreased 17% compared to the prior year period reflecting a decrease in sales of variable annuities with living benefit guarantees. Account values with living benefit riders declined to 56% as of June 30, 2023 compared to 59% a year ago reflecting our actions to optimize our business mix. This trend is expected to continue and meaningfully shift the mix of business away from products with living benefit guarantees over time.

Net Revenues

Management and financial advice fees decreased $12 million, or 6%, for the three months ended June 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows.

Distribution fees decreased $7 million, or 7%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the cumulative impact from net outflows.

Net investment income, which excludes net realized investment gains or losses, increased $79 million, or 64%, for the three months ended June 30, 2023 compared to the prior year period primarily due to higher interest rates, investment portfolio repositioning resulting in higher yields and increased SVA balances.

Premiums, policy and contract charges increased $40 million, or 12%, for the three months ended June 30, 2023 compared to the prior year period due to higher sales of life contingent payout annuities.

Expenses

Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, increased $80 million, or 74%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the impact of higher sales of life contingent payout annuities and increased volume in SVAs.

AMERIPRISE FINANCIAL, INC.

Corporate & Other

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

			Three Months Ended June 30,												Change
			2023						2022
			(in millions)
Revenues
Net investment income			$	76					$	39					$	37					95		%
Premiums, policy and contract charges			23						24						(1)						(4)
Other revenues			52						56						(4)						(7)
Total revenues			151						119						32						27
Banking and deposit interest expense			3						—						3						-
Total net revenues			148						119						29						24
Expenses
Distribution expenses			(2)						(3)						1						33
Interest credited to fixed accounts			57						60						(3)						(5)
Benefits, claims, losses and settlement expenses			58						58						—						-
Remeasurement (gains) losses of future policy benefit reserves			4						4						—						-
Amortization of deferred acquisition costs			2						3						(1)						(33)
Interest and debt expense			29						15						14						93
General and administrative expense			60						41						19						46
Total expenses			208						178						30						17
Adjusted operating loss			$	(60)					$	(59)					$	(1)					(2)		%

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

Our Corporate & Other segment pretax adjusted operating loss excludes net realized investment gains or losses, the market impact on fixed annuity benefits (net of hedges), the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impact, gain or loss on disposal of a business that is not considered discontinued operations, integration and restructuring charges, and the impact of consolidating CIEs. Our Corporate & Other segment pretax adjusted operating loss increased $1 million for the three months ended June 30, 2023 compared to the prior year period.

LTC insurance had a pretax adjusted operating earnings of $1 million for the three months ended June 30, 2023 compared to pretax adjusted operating loss of $6 million for the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.

FA business had a pretax adjusted operating loss of $5 million for the three months ended June 30, 2023 compared to a pretax adjusted operating loss of $5 million for the prior year period. Fixed deferred annuity account balances declined 10% to $6.7 billion as of June 30, 2023 compared to the prior year period as policies continue to lapse and we previously discontinued new sales of fixed deferred annuities.

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 restructuring charges, and the impact of consolidating CIEs, increased $37 million, or 95%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions and a $12 million benefit in our affordable housing partnerships.

Expenses

Interest and debt expense increased $14 million, or 93%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the issuance of $750 million of unsecured senior notes in March 2023.

General and administrative expense increased $19 million, or 46%, for the three months ended June 30, 2023 compared to the prior year period primarily reflecting the unfavorable mark-to-market impact on share-based compensation expense.

AMERIPRISE FINANCIAL, INC.

Consolidated Results of Operations for the Six Months Ended June 30, 2023 and 2022

The following table presents our consolidated results of operations:

			Six Months Ended June 30,												Change
			2023						2022
			(in millions)
Revenues
Management and financial advice fees			$	4,336					$	4,736					$	(400)					(8)		%
Distribution fees			999						905						94						10
Net investment income			1,509						548						961						NM
Premiums, policy and contract charges			745						680						65						10
Other revenues			263						247						16						6
Total revenues			7,852						7,116						736						10
Banking and deposit interest expense			234						5						229						NM
Total net revenues			7,618						7,111						507						7
Expenses
Distribution expenses			2,474						2,539						(65)						(3)
Interest credited to fixed accounts			325						286						39						14
Benefits, claims, losses and settlement expenses			628						(164)						792						NM
Remeasurement (gains) losses of future policy benefit reserves			(5)						(5)						—						-
Change in fair value of market risk benefits			390						619						(229)						(37)
Amortization of deferred acquisition costs			123						132						(9)						(7)
Interest and debt expense			156						84						72						86
General and administrative expense			1,904						1,841						63						3
Total expenses			5,995						5,332						663						12
Pretax income			1,623						1,779						(156)						(9)
Income tax provision			316						340						(24)						(7)
Net income			$	1,307					$	1,439					$	(132)					(9)		%
NM Not Meaningful.

Overall

Pretax income decreased $156 million, or 9%, for the six months ended June 30, 2023 compared to the prior year period.

• The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was an expense of $348 million for the six months ended June 30, 2023 compared to a benefit of $161 million for the prior year period.

• A negative impact from lower average equity markets compared to the prior year period. Our average WEI, which is a proxy for equity movements on AUM, decreased 4% in the six months ended June 30, 2023 compared to the prior year period. The ending WEI increased 16% compared to the prior year. The average S&P 500 index was 4% lower in the quarter compared to the prior year period.

• A $21 million unfavorable impact of lower asset management net performance fees.

• A favorable impact from the recent trend in rising interest rates on the investment portfolio yield, including from investment portfolio repositioning in our insurance business in the fourth quarter of 2022, along with higher balances in bank and certificate products.

Net Revenues

Management and financial advice fees decreased $400 million, or 8%, for the six months ended June 30, 2023 compared to the prior year period reflecting market depreciation, the cumulative impact of Asset Management net outflows and a decrease in performance fees of $53 million, partially offset by continued wrap account net inflows.

Distribution fees increased $94 million, or 10%, for the six months ended June 30, 2023 compared to the prior year period due to $140 million of higher fees on off-balance sheet brokerage cash due to an increase in short-term interest rates, partially offset by market depreciation.

AMERIPRISE FINANCIAL, INC.

Net investment income increased $961 million for the six months ended June 30, 2023 compared to the prior year period primarily reflecting:

• The favorable impact of growth in Ameriprise Bank customer deposits and certificate business as a result of the market environment and our strategic decision to invest in these businesses.

• The favorable impact of the recent trend in rising interest rates on the investment portfolio yield, including from investment portfolio repositioning in our insurance business in the fourth quarter of 2022.

• The favorable impact of higher net investment income of CIEs.

Premiums, policy and contract charges increased $65 million, or 10%, for the six months ended June 30, 2023 compared to the prior year period primarily due to higher sales of life contingent payout annuities.

Banking and deposit interest expense increased $229 million for the six months ended June 30, 2023 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and Ameriprise Bank cash deposits.

Expenses

Distribution expenses decreased $65 million, or 3%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting the cumulative impact of net retail outflows in Asset Management and lower advisor compensation due to a decrease in average wrap account balances from market depreciation.

Interest credited to fixed accounts increased $39 million, or 14%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting the following items:

• A $52 million increase in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits. The favorable impact of the nonperformance credit spread was $8 million for the six months ended June 30, 2023 compared to a favorable impact of $60 million for the prior year period.

• A $4 million decrease in expense from other market impacts on IUL benefits, net of hedges, which was an expense of $31 million for the six months ended June 30, 2023 compared to an expense of $35 million for the prior year period. The decrease in expense was primarily due to an increase in the IUL embedded derivative in the prior period, which reflected higher option costs due to a higher new money rate, offset by less discounting due to higher Treasury rates.

Benefits, claims, losses and settlement expenses increased $792 million, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting the following items:

• A $645 million increase in expense from market impacts on SVA embedded derivative, net of hedges in place to offset those risks. This increase was the result of a favorable $792 million change in the market impact on derivatives hedging the SVA embedded derivative and an unfavorable $1.4 billion change in the market impact on SVA embedded derivative. The main market driver contributing to these changes was the equity market impact on the SVA embedded derivative net of the impact on the corresponding hedge assets resulted in an expense for the six months ended June 30, 2023 compared to a benefit in the prior year period.

• The impact of higher sales of life contingent payout annuities.

• The impact of increased volume in SVAs.

Change in fair value of market risk benefits decreased $229 million, or 37%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting the following item:

• A $208 million decrease in expense from market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks. This decrease was the result of a favorable $554 million change in the market impact on variable annuity guaranteed benefits reserves and an unfavorable $346 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits. The main market drivers contributing to these changes are summarized below:

• Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the six months ended June 30, 2023 compared to an expense in the prior year period.

• Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in an expense for the six months ended June 30, 2023 compared to a benefit in the prior year period.

• Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the six months ended June 30, 2023 compared to the prior year period.

• Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a lower net expense for the six months ended June 30, 2023 compared to the prior year period.

Interest and debt expense increased $72 million, or 86%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting higher interest expense of CIEs and the issuance of $750 million of unsecured senior notes in March 2023.

AMERIPRISE FINANCIAL, INC.

General and administrative expense increased $63 million, or 3%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting higher volume related expenses and investments for business growth, $11 million of higher integration related expenses and an unfavorable change in the mark-to-market impact on share-based compensation. A portion of the higher integration related expenses was driven by the consolidation of the majority of our London-based teams into a single location following the acquisition of the BMO Global Asset Management (EMEA) business.

Income Taxes

Our effective tax rate was 19.5% for the six months ended June 30, 2023 compared to 19.1% for the prior year period. See Note 17 to our Consolidated Financial Statements for additional discussion on income taxes.

Results of Operations by Segment for the Six Months Ended June 30, 2023 and 2022

The following table presents summary financial information by segment:

			Six Months Ended June 30,
2023						2022
(in millions)
Advice & Wealth Management
Net revenues			$	4,608					$	4,098
Expenses			3,184						3,166
Adjusted operating earnings			$	1,424					$	932
Asset Management
Net revenues			$	1,607					$	1,898
Expenses			1,280						1,391
Adjusted operating earnings			$	327					$	507
Retirement & Protection Solutions
Net revenues			$	1,682					$	1,528
Expenses			1,299						1,185
Adjusted operating earnings			$	383					$	343
Corporate & Other
Net revenues			$	274					$	235
Expenses			408						376
Adjusted operating loss			$	(134)					$	(141)

Advice & Wealth Management

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

			2023						2022
(in billions)
Beginning balance			$	412.1					$	464.7
Net flows			11.9						14.8
Market appreciation (depreciation) and other			30.7						(80.2)
Ending balance			$	454.7					$	399.3
Advisory wrap account assets ending balance (1)			$	449.9					$	395.1
Average advisory wrap account assets (2)			$	425.7					$	435.7

(1) Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts. Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.

(2) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period excluding the most recent month for the six months ended June 30, 2023 and 2022.

Ending wrap account assets increased $42.6 billion, or 10%, to $454.7 billion during the six months ended June 30, 2023 due to market appreciation and other of $30.7 billion and net inflows of $11.9 billion. Average advisory wrap account assets decreased $10.0 billion, or 2%, compared to the prior year period primarily reflecting year over year market depreciation, partially offset by net inflows.

AMERIPRISE FINANCIAL, INC.

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

			Six Months Ended June 30,												Change
			2023						2022
			(in millions)
Revenues
Management and financial advice fees			$	2,653					$	2,720					$	(67)					(2)		%
Distribution fees			1,162						1,071						91						8
Net investment income			892						198						694						NM
Other revenues			135						114						21						18
Total revenues			4,842						4,103						739						18
Banking and deposit interest expense			234						5						229						NM
Total net revenues			4,608						4,098						510						12
Expenses
Distribution expenses			2,369						2,417						(48)						(2)
Interest and debt expense			13						5						8						NM
General and administrative expense			802						744						58						8
Total expenses			3,184						3,166						18						1
Adjusted operating earnings			$	1,424					$	932					$	492					53		%
NM Not Meaningful.

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $492 million, or 53%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting higher short-term interest rates and growth in bank cash deposits and certificate products along with the cumulative impact of client net flows, partially offset by market depreciation. Pretax adjusted operating margin was 30.9% for the for the six months ended June 30, 2023 compared to 22.7% for the prior year period.

Net Revenues

Management and financial advice fees decreased $67 million, or 2%, for the six months ended June 30, 2023 compared to the prior year period primarily due to lower average wrap account assets. Average advisory wrap account assets decreased $10.0 billion, or 2%, compared to the prior year period primarily reflecting market depreciation, partially offset by continued net inflows.

Distribution fees increased $91 million, or 8%, for the six months ended June 30, 2023 compared to the prior year period reflecting $140 million of higher fees on off-balance sheet brokerage cash, primarily due to an increase in short-term interest rates, partially offset by market depreciation.

Net investment income, which excludes net realized investment gains or losses, increased $694 million, for the six months ended June 30, 2023 compared to the prior year period primarily due to higher average invested assets due to increased bank and certificate deposits and the favorable impact of increased short-term interest rates, including higher investment yields on the investment portfolio supporting the bank and certificate products.

Banking and deposit interest expense increased $229 million for the six months ended June 30, 2023 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and bank cash deposits.

Expenses

Distribution expenses decreased $48 million, or 2%, for the six months ended June 30, 2023 compared to the prior year period reflecting lower asset-based advisor compensation from lower average wrap account assets, partially offset by increased investments in recruiting experienced advisors.

Interest and debt expense increased $8 million for the six months ended June 30, 2023 compared to the prior year period due to the increase in capital supporting the growth in the bank and certificate products.

General and administrative expense increased $58 million, or 8%, for the six months ended June 30, 2023 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 June 30,												Change									Six Months Ended June 30,
2023						2022						2023						2022
			(in billions)
Equity			$	316.1					$	306.0					$	10.1					3		%				$	309.1					$	357.0					$	(47.9)					(13)		%
Fixed income			225.5						216.5						9.0						4						220.2						250.6						(30.4)						(12)
Money market			22.4						19.3						3.1						16						22.6						14.3						8.3						58
Alternative			35.1						38.4						(3.3)						(9)						34.8						39.6						(4.8)						(12)
Hybrid and other			17.5						18.0						(0.5)						(3)						17.0						20.9						(3.9)						(19)
Total managed assets			$	616.6					$	598.2					$	18.4					3		%				$	603.7					$	682.4					$	(78.7)					(12)		%

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

The following table presents the changes in global managed assets:

			Six Months Ended June 30,
			2023						2022
			(in billions)
Global Retail Funds
Beginning assets			$	309.3					$	409.4
Inflows			23.6						37.3
Outflows			(32.7)						(47.0)
Net VP/VIT fund flows			(2.4)						(2.1)
Net new flows (1)			(11.5)						(11.8)
Reinvested dividends			2.1						4.1
Net flows			(9.4)						(7.7)
Distributions			(2.6)						(4.6)
Market appreciation (depreciation) and other			26.0						(68.9)
Foreign currency translation (2)			4.1						(5.2)
Total ending assets			327.4						323.0
Global Institutional
Beginning assets			274.7						344.7
Inflows (3)			24.4						28.8
Outflows (3)			(22.8)						(24.9)
Net flows (1)			1.6						3.9
Market appreciation (depreciation) and other (4)			4.5						(58.1)
Foreign currency translation (2)			8.4						(15.3)
Total ending assets			289.2						275.2
Total managed assets			$	616.6					$	598.2
Total net flows			$	(7.8)					$	(3.8)
Legacy insurance partners net flows (5)			$	(2.2)					$	(1.9)

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

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

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

(4) 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.

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

AMERIPRISE FINANCIAL, INC.

Total segment AUM increased $32.6 billion, or 6%, during the six months ended June 30, 2023 primarily due to equity market appreciation. Net outflows were $7.8 billion for the six months ended June 30, 2023, a decrease of $4.0 billion compared to the prior year period.

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

			Six Months Ended June 30,												Change
			2023						2022
			(in millions)
Revenues
Management and financial advice fees			$	1,393					$	1,675					$	(282)					(17)		%
Distribution fees			180						211						(31)						(15)
Net investment income			19						4						15						NM
Other revenues			15						8						7						88
Total revenues			1,607						1,898						(291)						(15)
Banking and deposit interest expense			—						—						—						-
Total net revenues			1,607						1,898						(291)						(15)
Expenses
Distribution expenses			463						529						(66)						(12)
Amortization of deferred acquisition costs			3						6						(3)						(50)
Interest and debt expense			3						2						1						50
General and administrative expense			811						854						(43)						(5)
Total expenses			1,280						1,391						(111)						(8)
Adjusted operating earnings			$	327					$	507					$	(180)					(36)		%
NM Not Meaningful.

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, decreased $180 million, or 36%, for the six months ended June 30, 2023 compared to the prior year period primarily due to equity and fixed income market depreciation, the cumulative impact of net outflows and lower performance fees.

Net Revenues

Management and financial advice fees decreased $282 million, or 17%, for the six months ended June 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows, equity and fixed income market depreciation, and a decrease in performance fees of $53 million.

Distribution fees decreased $31 million, or 15%, for the six months ended June 30, 2023 compared to the prior year period primarily due to market depreciation and the cumulative impact from net outflows.

Net investment income increased $15 million, for the six months ended June 30, 2023 compared to the prior year period primarily driven by higher interest rates.

Expenses

Distribution expenses decreased $66 million, or 12%, for the six months ended June 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows and market depreciation.

General and administrative expense decreased $43 million, or 5%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting lower performance fee related compensation and disciplined expense management.

AMERIPRISE FINANCIAL, INC.

Retirement & Protection Solutions

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

			Six Months Ended June 30,												Change
2023						2022
(in millions)
Revenues
Management and financial advice fees			$	368					$	415					$	(47)					(11)		%
Distribution fees			197						219						(22)						(10)
Net investment income			398						238						160						67
Premiums, policy and contract charges			714						649						65						10
Other revenues			5						7						(2)						(29)
Total revenues			1,682						1,528						154						10
Banking and deposit interest expense			—						—						—						-
Total net revenues			1,682						1,528						154						10
Expenses
Distribution expenses			230						240						(10)						(4)
Interest credited to fixed accounts			182						192						(10)						(5)
Benefits, claims, losses and settlement expenses			350						217						133						61
Remeasurement (gains) losses of future policy benefit reserves			(7)						(10)						3						30
Change in fair value of market risk benefits			238						260						(22)						(8)
Amortization of deferred acquisition costs			115						120						(5)						(4)
Interest and debt expense			25						18						7						39
General and administrative expense			166						148						18						12
Total expenses			1,299						1,185						114						10
Adjusted operating earnings			$	383					$	343					$	40					12		%

Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $40 million, or 12%, for the six months ended June 30, 2023 compared to the prior year period.

Net Revenues

Management and financial advice fees decreased $47 million, or 11%, for the six months ended June 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows and market depreciation.

Distribution fees decreased $22 million, or 10%, for the six months ended June 30, 2023 compared to the prior year period due to the cumulative impact from net outflows and market depreciation.

Net investment income, which excludes net realized investment gains or losses, increased $160 million, or 67%, for the six months ended June 30, 2023 compared to the prior year period primarily due to higher interest rates, investment portfolio repositioning resulting in higher yields and increased SVA balances.

Premiums, policy and contract charges increased $65 million, or 10%, for the six months ended June 30, 2023 compared to the prior year period primarily due to higher sales of life contingent payout annuities.

Expenses

Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, increased $133 million, or 61%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting the impact of higher sales of life contingent payout annuities and increased volume in SVAs.

Change in fair value of market risk benefits, which exclude the market impact on variable annuity guaranteed benefits (net of hedges), decreased $22 million, or 8%, for the six months ended June 30, 2023 compared to the prior year period reflecting market depreciation on contractual fees.

General and administrative expense increased $18 million, or 12%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting higher one-time related expenses, timing, and a modest increase in core expenses.

AMERIPRISE FINANCIAL, INC.

Corporate & Other

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

			Six Months Ended June 30,												Change
			2023						2022
			(in millions)
Revenues
Net investment income			$	127					$	72					$	55					76		%
Premiums, policy and contract charges			47						48						(1)						(2)
Other revenues			107						115						(8)						(7)
Total revenues			281						235						46						20
Banking and deposit interest expense			7						—						7						-
Total net revenues			274						235						39						17
Expenses
Distribution expenses			(4)						(4)						—						-
Interest credited to fixed accounts			118						121						(3)						(2)
Benefits, claims, losses and settlement expenses			116						117						(1)						(1)
Remeasurement (gains) losses of future policy benefit reserves			2						5						(3)						(60)
Amortization of deferred acquisition costs			5						6						(1)						(17)
Interest and debt expense			47						31						16						52
General and administrative expense			124						100						24						24
Total expenses			408						376						32						9
Adjusted operating loss			$	(134)					$	(141)					$	7					5		%

Our Corporate & Other segment pretax adjusted operating loss excludes net realized investment gains or losses, the market impact on fixed index annuity benefits (net of hedges), the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impact, gain or loss on disposal of a business that is not considered discontinued operations, integration and restructuring charges, and the impact of consolidating CIEs. Our Corporate & Other segment pretax adjusted operating loss decreased $7 million, or 5%, for the six months ended June 30, 2023 compared to the prior year period.

LTC insurance had a pretax adjusted operating earnings of $9 million for the six months ended June 30, 2023 compared to a pretax adjusted operating loss of $11 million for the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.

FA business had a pretax adjusted operating loss of $14 million for the six months ended June 30, 2023 compared to a pretax adjusted operating loss of $10 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, increased $55 million, or 76%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions.

Expenses

Interest and debt expense increased $16 million, or 52%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting the issuance of $750 million of unsecured senior notes in March 2023.

General and administrative expense, which excludes integration and restructuring charges, increased $24 million, or 24%, for the six months ended June 30, 2023 compared to the prior year period primarily reflecting the unfavorable mark-to-market impact on share-based compensation expense.

Fair Value Measurements

We report certain assets and liabilities at fair value; specifically, separate account assets, derivatives, market risk benefits, 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

AMERIPRISE FINANCIAL, INC.

price review, price comparison across pricing vendors and due diligence reviews of vendors. See Note 13 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 market risk benefits, 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 market risk benefits, fixed deferred indexed annuities, structured variable 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 June 30, 2023. 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 total equity would be approximately $955 million, net of the reinsurance accrual and income taxes (calculated at the statutory tax rate of 21%), based on June 30, 2023 credit spreads.

Liquidity and Capital Resources

Overview

As of June 30, 2023 and December 31, 2022, we had Available Capital for Capital Adequacy of $5.0 billion and $5.2 billion, respectively. Available Capital for Capital Adequacy best reflects the available capital resources of our core operations.

We maintained substantial liquidity during the six months ended June 30, 2023. At June 30, 2023 and December 31, 2022, we had $7.3 billion and $7.0 billion, respectively, in cash and cash equivalents excluding CIEs and other restricted cash on a consolidated basis.

As of June 30, 2023 and December 31, 2022, the parent company had $895 million and $389 million, respectively, in cash, cash equivalents, and unencumbered liquid securities. Liquid securities predominantly include U.S. government agency mortgage back securities. Additional sources of liquidity at the parent company include a line of credit with an affiliate up to $727 million and an unsecured revolving committed credit facility for up to $1.0 billion that expires in June 2026. Management’s estimate of liquidity available to the parent company in a volatile and uncertain economic environment as of June 30, 2023 was $2.1 billion which includes cash, cash equivalents, unencumbered liquid securities, the line of credit with an affiliate and a portion of the committed credit facility.

Under the terms of the committed credit facility, we can increase the availability to $1.25 billion upon satisfaction of certain approval requirements. Available borrowings under this facility are reduced by any outstanding letters of credit. At June 30, 2023, 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 June 30, 2023.

In addition, we have access to collateralized borrowings, which may include repurchase agreements, Federal Home Loan Bank (“FHLB”) advances, and advances at the Federal Reserve. Our subsidiaries, RiverSource Life Insurance Company (“RiverSource Life”), and Ameriprise Bank, FSB are members of the FHLB of Des Moines, which provides access to collateralized borrowings. As of June 30, 2023 and December 31, 2022, we had $8.5 billion and $8.0 billion, respectively, of estimated borrowing capacity under the FHLB facilities, of which $201 million was outstanding as of both June 30, 2023 and December 31, 2022, respectively, and is collateralized with commercial mortgage backed securities. In addition, Ameriprise Bank, FSB maintains access to borrowings from the Federal Reserve which are collateralized with residential mortgage backed securities, commercial mortgage backed securities and corporate debt securities. As of June 30, 2023 and December 31, 2022, we estimated $11.7 billion and $9.0 billion, respectively, of borrowing capacity from the Federal Reserve in addition to the FHLB capacity and there were no outstanding obligations.

There have been no material changes to our contractual obligations disclosed in our 2022 10-K.

We issued $750 million of 5.15% unsecured senior notes on March 9, 2023. See Note 12 to our Consolidated Financial Statements for further information about our long-term debt maturities, including $750 million maturing within the 2023 calendar year.

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

On August 16, 2022, federal legislation commonly referred to as the Inflation Reduction Act of 2022 (“IRA”) was enacted. We have evaluated the tax provisions of the IRA, the most significant of which are the corporate alternative minimum tax (“CAMT”) and the share repurchase excise tax. Both the CAMT and share repurchase tax are effective beginning in 2023. We expect to be an applicable corporation required to compute CAMT; however, based on current estimates, we do not believe we will be liable for the CAMT in 2023 and therefore have not recorded a liability. We will be a covered corporation subject to the share repurchase excise tax. As the

AMERIPRISE FINANCIAL, INC.

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 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
			June 30, 2023						December 31, 2022			June 30, 2023						December 31, 2022
			(in millions)
RiverSource Life (1)			$	2,653					$	3,103					N/A						$	571
RiverSource Life of NY (1)			229						320						N/A						40
ACC (3)(4)			691						534						$	643					496
TAM UK International Holdings Ltd (5)			354						437						220						214
Ameriprise Bank, FSB (6)			1,694						1,542						1,132						999
AFS (2)(3)			133						90						#						#
Ameriprise Captive Insurance Company (2)			38						38						14						10
Ameriprise Trust Company (2)			58						54						42						38
AEIS (2)(3)			177						208						29						26
RiverSource Distributors, Inc. (2)(3)			12						12						#						#
Columbia Management Investment Distributors, Inc. (2)(3)			20						17						#						#
Columbia Threadneedle Investments UK International Ltd. (5)			359						330						160						152

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

(2) Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of June 30, 2023 and December 31, 2022.

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

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

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

(6) Actual capital and regulatory capital requirements are determined in accordance with rules defined under Basel III capital framework. As permitted, AOCI is excluded from the calculation of regulatory capital.

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

During the six months ended June 30, 2023, the parent holding company received cash dividends or a return of capital from its subsidiaries of $1.6 billion (including $400 million from RiverSource Life and $760 million from AMPF Holding Corporation) and contributed cash to its subsidiaries of $204 million. During the six months ended June 30, 2022, the parent holding company received cash dividends or a return of capital from its subsidiaries of $1.4 billion (including $500 million from RiverSource Life) and contributed cash to its subsidiaries of $294 million (including $245 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,

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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 $284 million and $275 million for the six months ended June 30, 2023 and 2022, respectively. On July 26, 2023, we announced a quarterly dividend of $1.35 per common share. The dividend will be paid on August 18, 2023 to our shareholders of record at the close of business on August 7, 2023.

In January 2022, our Board of Directors authorized us to repurchase up to $3.0 billion for the repurchase of our common stock through March 31, 2024. As of June 30, 2023, we had $0.6 billion remaining under this share repurchase authorization. On July 24, 2023, our Board of Directors authorized an additional $3.5 billion for the repurchase of our common stock through September 30, 2025. We intend to fund share repurchases through existing excess capital, future free cash flow generation 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 six months ended June 30, 2023, we repurchased a total of 3.2 million shares of our common stock at an average price of $316.40 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 decreased $201 million to $1.6 billion for the six months ended June 30, 2023 compared to $1.8 billion for the prior year period primarily reflecting higher income taxes paid and decreases in brokerage deposits, partially offset by higher investment income on fixed maturity securities. The higher investment income is driven by higher yields and the growth in Ameriprise Bank customer deposits and certificate business growth.

Investing Activities

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

Net cash used in investing activities increased $1.4 billion to $6.0 billion for the six months ended June 30, 2023 compared to $4.6 billion for the prior year period primarily reflecting a $2.2 billion increase in purchases of Available-for-Sale securities, partially offset by a $441 million increase in proceeds from maturities, sinking fund payments and calls of Available-for-Sale securities.

Financing Activities

Net cash provided by financing activities increased $1.8 billion to $4.4 billion for the six months ended June 30, 2023 compared to $2.6 billion for the prior year period primarily reflecting a $2.8 billion increase in net cash flows from investment certificates partially offset by a $1.5 billion decrease in the change in banking deposits, net.

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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;

• statements about the strategic and regulatory outcomes from the withdrawal of our application to convert Ameriprise Bank to a state-chartered bank and national trust bank;

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

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

• 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;

• 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;

• 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;

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• 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 2022 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.