Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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, 2023, filed with the Securities and Exchange Commission (“SEC”) on February 22, 2024 (“2023 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 130-year history of providing financial solutions. We are a long-standing leader in financial planning and advice with $1.5 trillion in assets under management and administration as of September 30, 2024. We 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, changes in interest and inflation rates, financial market volatility, fluctuations in foreign exchange rates, geopolitical strain, pandemics, the competitive environment, client and customer activities and preferences, and the various regulatory and legislative developments. 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 2023 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 and embedded derivatives 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. 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.”

In the third quarter, we conducted our annual review of life insurance, annuity and long term care (“LTC”) valuation assumptions relative to current experience and management expectations including modeling changes. These annual assumption updates are collectively referred to as unlocking throughout this document. See our Consolidated and Segment Results of Operations sections for the pretax impacts on our revenues and expenses attributable to unlocking.

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

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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 Financial Accounting Standards Board 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.

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 table reconciles our GAAP measures to adjusted operating measures:


						Per Diluted Share
	Nine Months Ended September 30,					Nine Months Ended September 30,
	2024		2023		2024			2023
	(in millions, except per share amounts)
Net income (loss)	$	2,330	$	2,179		$	22.53		$	20.08
Less Adjustments:
Net realized investment gains (losses) (1)	(9)		(32)			(0.09)			(0.29)
Market impact on non-traditional long-duration products (1)	(322)		(137)			(3.11)			(1.27)
Mean reversion related impacts (1)	1		—			0.01			—


Integration/restructuring charges (1)	—		(47)			—			(0.43)
Net income (loss) attributable to CIEs	3		—			0.03			—
Tax effect of adjustments (2)	69		45			0.66			0.41
Adjusted operating earnings	$	2,588	$	2,350		$	25.03		$	21.66

Weighted average common shares outstanding:
Basic	101.6		106.4
Diluted	103.4		108.5

(1) Pretax adjusted operating adjustments.

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

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


	Twelve Months Ended September 30,
2024			2023
(in millions)
Net income	$	2,707		$	2,828
Less: Adjustments (1)	(642)			(254)
Adjusted operating earnings	3,349			3,082

Total Ameriprise Financial, Inc. shareholders’ equity	4,828			3,894
Less: AOCI, net of tax	(1,926)			(2,477)
Total Ameriprise Financial, Inc. shareholders’ equity, excluding AOCI	6,754			6,371
Less: Equity impacts attributable to CIEs	(3)			(3)
Adjusted operating equity	$	6,757		$	6,374



Return on equity, excluding AOCI	40.1	%	44.4	%
Adjusted operating return on equity, excluding AOCI (2)	49.6	%	48.4	%

(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%.

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


	September 30, 2024		December 31, 2023
	(in millions)
Ameriprise Financial, Inc. GAAP total equity	$	5,715	$	4,729
Less: AOCI	(1,101)		(1,766)
Ameriprise Financial, Inc. GAAP total equity, excluding AOCI	6,816		6,495
Less: RiverSource Life Insurance Company GAAP equity, excluding AOCI	1,658		1,851
Add: RiverSource Life Insurance Company statutory total adjusted capital	2,721		3,093
Less: Goodwill and intangibles	2,626		2,622
Add: Other adjustments	270		303
Available Capital for Capital Adequacy	$	5,523	$	5,418

Critical Accounting Estimates

The accounting and reporting policies that we use affect our Consolidated Financial Statements. Certain of our accounting and reporting policies are critical to an understanding of our consolidated results of operations and financial condition and, in some cases, the application of these policies can be significantly affected by the estimates, judgments and assumptions made by management during the preparation of our Consolidated Financial Statements. These accounting policies are discussed in detail in “Management’s Discussion and Analysis — Critical Accounting Estimates” in our 2023 10-K.

Recent Accounting Pronouncements

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

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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 September 30,				Nine Months Ended September 30,
2024		2023	Change	2024	2023	Change
S&P 500
Daily average	5,546		4,456	24%	5,266		4,222	25%
Period end	5,762		4,288	34%	5,762		4,288	34%
Weighted Equity Index (“WEI”) (1)
Daily average	3,528		2,903	22%	3,369		2,779	21%
Period end	3,664		2,788	31%	3,664		2,788	31%

(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 2023 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.

The following table presents detail regarding our AUM and AUA:


	September 30,					Change
2024			2023
(in billions)
Assets Under Management and Administration
Advice & Wealth Management AUM	$	565.2		$	440.7	$	124.5	28	%
Asset Management AUM	672.1			587.2		84.9		14
Corporate AUM	0.5			0.3		0.2		67
Eliminations	(45.9)			(37.8)		(8.1)		(21)
Total Assets Under Management	1,191.9			990.4		201.5		20
Total Assets Under Administration	314.2			242.4		71.8		30
Total AUM and AUA	$	1,506.1		$	1,232.8	$	273.3	22	%

Total AUM increased $201.5 billion, or 20%, to $1.2 trillion as of September 30, 2024 compared to $990.4 billion as of September 30, 2023 due to an $124.5 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $84.9 billion increase in Asset Management AUM primarily driven by equity market appreciation, partially offset by net outflows. Total AUA increased $71.8 billion, or 30%, to $314.2 billion as of September 30, 2024 compared to the prior year period primarily driven by equity market appreciation and an increase in third-party money market funds and brokered CDs. 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 September 30, 2024 and 2023

The following table presents our consolidated results of operations:


	Three Months Ended September 30,				Change
	2024		2023
	(in millions)
Revenues
Management and financial advice fees	$	2,573	$	2,287	$	286	13	%
Distribution fees	513		463		50		11
Net investment income	934		809		125		15
Premiums, policy and contract charges	409		390		19		5
Other revenues	131		127		4		3
Total revenues	4,560		4,076		484		12
Banking and deposit interest expense	163		151		12		8
Total net revenues	4,397		3,925		472		12
Expenses
Distribution expenses	1,539		1,297		242		19
Interest credited to fixed accounts	118		139		(21)		(15)
Benefits, claims, losses and settlement expenses	430		120		310		NM
Remeasurement (gains) losses of future policy benefit reserves	(22)		(12)		(10)		(83)
Change in fair value of market risk benefits	566		168		398		NM
Amortization of deferred acquisition costs	59		62		(3)		(5)
Interest and debt expense	87		84		3		4
General and administrative expense	975		950		25		3
Total expenses	3,752		2,808		944		34
Pretax income	645		1,117		(472)		(42)
Income tax provision	134		245		(111)		(45)
Net income	$	511	$	872	$	(361)	(41)	%
NM Not Meaningful - variance equal to or greater than 100%.

Overall

Pretax income decreased $472 million, or 42%, for the three months ended September 30, 2024 compared to the prior year period. The following impacts were significant drivers of the period-over-period change in pretax income:

The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was an expense of $402 million for the three months ended September 30, 2024 compared to a benefit of $211 million for the prior year period.
An unfavorable impact from the cumulative impact of Asset Management net outflows.
A favorable impact from the trend in rising investment portfolio yields, along with higher balances in Ameriprise Bank, FSB (“Ameriprise Bank”) customer deposits and structured variable annuities (“SVA”) products.
A favorable impact from higher average equity markets compared to the prior year period. Our average WEI, which is a proxy for equity movements on AUM, increased 22% in the three months ended September 30, 2024 compared to the prior year period. The average S&P 500 index was 24% higher in the quarter compared to the prior year period.

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


Pretax Increase (Decrease)	2024		2023
	(in millions)

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

Total revenues	(4)		1

Interest credited to fixed accounts	(10)		—
Benefits, claims, losses and settlement expenses	(4)		(17)
Remeasurement (gains) losses of future policy benefit reserves:
LTC unlocking	4		(5)
Unlocking impact, excluding LTC	(24)		(6)
Total remeasurement (gains) losses of future policy benefit reserves	(20)		(11)
Change in fair value of market risk benefits	107		128

Total expenses	73		100
Pretax income (loss) (1)	$	(77)	$	(99)

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

The primary driver of the unlocking impact was lowered surrender assumptions on variable annuities with living benefits resulting in an expense for the three months ended September 30, 2024, partially offset by the updated claims incident rates on disability insurance. The primary driver of the unlocking impact was lowered surrender assumptions on variable annuities with living benefits resulting in an expense for the three months ended September 30, 2023.

Net Revenues

Management and financial advice fees increased $286 million, or 13%, for the three months ended September 30, 2024 compared to the prior year period reflecting market appreciation and wrap account net inflows, partially offset by the cumulative impact of Asset Management net outflows.

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

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

The favorable impact of growth in Ameriprise Bank customer deposits and SVA products.
The favorable impact of the trend in rising investment portfolio yields.

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

Expenses

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

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

A $20 million decrease in expense from other market impacts on indexed universal life (“IUL”) benefits, net of hedges, which was a benefit of $35 million for the three months ended September 30, 2024 compared to a benefit of $15 million for the prior year period. The decrease in expense was primarily due to a decrease in the IUL embedded derivative in the current period, which reflected model changes and lower option costs due to a lower new money rate, offset by less discounting due to lower Treasury rates.
A $3 million increase in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits. The unfavorable impact of the nonperformance credit spread was $5 million for the three months ended September 30, 2024 compared to an unfavorable impact of $2 million for the prior year period.

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

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hedges in place to offset those risks. This increase was primarily the result of an unfavorable $683 million change in the market impact on SVA embedded derivative and a favorable $464 million change in the market impact on derivatives hedging the SVA embedded derivative. The main market driver contributing to these changes was the equity market impact on the SVA embedded derivative net of the impact on the corresponding hedge assets resulted in an expense for the three months ended September 30, 2024 compared to a benefit in the prior year period. The increase in expense also reflects the impact of increased volume in SVAs and the impact of higher sales of life contingent payout annuities.

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

A $401 million increase in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks. This increase was the result of an unfavorable $983 million change in the market impact on variable annuity guaranteed benefits reserves, partially offset by a favorable $595 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits. The main market drivers contributing to these changes are summarized below:
Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the three months ended September 30, 2024 compared to an expense in the prior year period.
Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in an expense for the three months ended September 30, 2024 compared to a benefit in the prior year period.
Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the three months ended September 30, 2024 compared to an expense in the prior year period.
Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a higher net expense for the three months ended September 30, 2024 compared to the prior year period.

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

Income Taxes

Our effective tax rate was 20.7% for the three months ended September 30, 2024 compared to 21.8% for the prior year period. The decrease in the effective tax rate for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was primarily due to lower pretax income in the current period compared to the prior period and the related impact on tax preferred items, a decrease in unrecognized tax benefits, and a decrease in foreign taxes, partially offset by an increase in state income taxes, net of federal benefit. See Note 16 to our Consolidated Financial Statements for additional discussion on income taxes.

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

Adjusted operating earnings is the measure of segment profit or loss management uses to evaluate segment performance. Adjusted operating earnings should not be viewed as a substitute for GAAP pretax income. We believe the presentation of segment adjusted operating earnings as we measure it for management purposes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitating a more meaningful trend analysis. See Note 19 to the Consolidated Financial Statements for further information on the presentation of segment results and our definition of adjusted operating earnings.

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The following table presents summary financial information by segment:


	Three Months Ended September 30,
2024			2023
(in millions)
Advice & Wealth Management
Net revenues	$	2,742		$	2,407
Expenses	1,916			1,678
Adjusted operating earnings	$	826		$	729
Asset Management
Net revenues	$	882		$	826
Expenses	637			627
Adjusted operating earnings	$	245		$	199
Retirement & Protection Solutions
Net revenues	$	973		$	876
Expenses	855			776
Adjusted operating earnings	$	118		$	100
Corporate & Other
Net revenues	$	115		$	143
Expenses	258			215
Adjusted operating loss	$	(143)		$	(72)

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


Segment Pretax Operating Increase (Decrease)	2024						2023
Retirement & Protection Solutions	Corporate		Retirement & Protection Solutions			Corporate
	(in millions)

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

Total revenues	(5)			—			1		—


Benefits, claims, losses and settlement expenses	4			—			(17)		—
Remeasurement (gains) losses of future policy benefit reserves:
LTC unlocking	—			4			—		(5)
Unlocking impact, excluding LTC	(24)			—			(6)		—
Total remeasurement (gains) losses of future policy benefit reserves	(24)			4			(6)		(5)
Change in fair value of market risk benefits	105			—			128		—

Total expenses	85			4			105		(5)
Pretax income (loss)	$	(90)		$	(4)		$	(104)	$	5

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Advice & Wealth Management

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


	2024		2023
(in billions)
Beginning balance	$	535.0	$	454.7
Net flows	8.0		5.4
Market appreciation (depreciation) and other	26.1		(16.0)
Ending balance	$	569.1	$	444.1

Advisory wrap account assets ending balance (1)	$	563.4	$	439.3
Average advisory wrap account assets (2)	$	541.7	$	455.4

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

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

Ending wrap account assets increased $34.1 billion, or 6%, to $569.1 billion during the three months ended September 30, 2024 due to net inflows of $8.0 billion and market appreciation of $26.1 billion. Average advisory wrap account assets increased $86.3 billion, or 19%, compared to the prior year period primarily reflecting market appreciation and net inflows.

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


	Three Months Ended September 30,				Change
	2024		2023
	(in millions)
Revenues
Management and financial advice fees	$	1,659	$	1,424	$	235	17	%
Distribution fees	614		552		62		11
Net investment income	554		517		37		7
Other revenues	78		65		13		20
Total revenues	2,905		2,558		347		14
Banking and deposit interest expense	163		151		12		8
Total net revenues	2,742		2,407		335		14
Expenses
Distribution expenses	1,488		1,253		235		19
Interest and debt expense	9		6		3		50
General and administrative expense	419		419		—		—
Total expenses	1,916		1,678		238		14
Adjusted operating earnings	$	826	$	729	$	97	13	%

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $97 million, or 13%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting higher average wrap account balances due to market appreciation and net inflows. Pretax adjusted operating margin was 30.1% for the three months ended September 30, 2024 compared to 30.3% for the prior year period.

Ameriprise Bank is continuing its deposit growth trend, with bank deposit balances increasing $0.8 billion from the prior year period to $21.7 billion. The daily average interest-bearing deposit balance increased to $21.5 billion for the three months ended September 30, 2024 compared to $20.9 billion for the prior year period with the average interest rate paid on deposits increasing to 0.46% for the three months ended September 30, 2024 from 0.40% for the prior year period. Profitability at the bank increased compared to the prior year period primarily reflecting growth in deposits. Ameriprise Certificate Company (“ACC”) client deposits decreased $0.6 billion from the prior year period to $12.0 billion. After a period of strong growth during a rising interest rate environment, ACC has experienced net outflows during the three months ended September 30, 2024.

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AMERIPRISE FINANCIAL, INC.

Net Revenues

Management and financial advice fees increased $235 million, or 17%, for the three months ended September 30, 2024 compared to the prior year period primarily due to growth in average wrap account assets. Average advisory wrap account assets increased $86.3 billion, or 19%, compared to the prior year period primarily reflecting market appreciation and net inflows.

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

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

Expenses

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

Asset Management

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


Retail Fund Rankings in Top 2 Quartiles or Above Index Benchmark - Asset Weighted (1)	1 year	3 year	5 year	10 year
Equity	40%	69%	78%	86%
Fixed Income	88%	71%	81%	95%
Asset Allocation	90%	57%	89%	90%

4- or 5-star Morningstar rated funds (2)	Overall	3 year	5 year	10 year
Number of rated funds	118	73	87	103

(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 Institutional 3 share class), net of fees. Peer groupings of Threadneedle funds are defined by either IA or Morningstar index and are based on the Primary Share Class. 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 89 Columbia funds rated (based on primary share class), 4 received a 5-star Overall Rating and 42 received a 4-star Overall Rating. Out of 139 Threadneedle funds rated (based on highest-rated share class), 21 received a 5-star Overall Rating and 51 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 September 30,						Change					Three Months Ended September 30,
2024			2023			2024			2023
	(in billions)
Equity	$	353.8		$	299.1		$	54.7		18	%		$	347.5	$	313.9	$	33.6	11	%
Fixed income	243.5			214.9			28.6			13			235.8		222.8		13.0		6
Money market	21.7			22.7			(1.0)			(4)			22.2		22.6		(0.4)		(2)
Alternative	33.3			33.6			(0.3)			(1)			33.4		34.8		(1.4)		(4)
Hybrid and other	19.8			16.9			2.9			17			19.5		17.5		2.0		11
Total managed assets	$	672.1		$	587.2		$	84.9		14	%		$	658.4	$	611.6	$	46.8	8	%

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

Index

AMERIPRISE FINANCIAL, INC.

The following table presents the changes in global managed assets:


	Three Months Ended September 30,
2024			2023
(in billions)
Global Retail Funds
Beginning assets	$	347.5		$	327.4
Inflows	13.1			11.3
Outflows	(15.6)			(15.2)
Net VP/VIT fund flows	(1.7)			(1.3)
Net new flows	(4.2)			(5.2)
Reinvested dividends	1.5			1.3
Net flows	(2.7)			(3.9)
Distributions	(1.8)			(1.5)

Market appreciation (depreciation) and other	15.5			(8.5)
Foreign currency translation (1)	3.9			(3.3)
Total ending assets	362.4			310.2

Global Institutional
Beginning assets	294.4			289.2
Inflows (2)	8.2			8.5
Outflows (2)	(9.1)			(8.8)
Net flows	(0.9)			(0.3)

Market appreciation (depreciation) and other (3)	7.8			(4.6)
Foreign currency translation (1)	8.4			(7.3)
Total ending assets	309.7			277.0
Total managed assets	$	672.1		$	587.2

Total net flows	$	(3.6)		$	(4.2)

Legacy insurance partners net flows (4)	$	(0.9)		$	(0.9)

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

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

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

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

Total segment AUM increased $30.2 billion, or 5%, during the three months ended September 30, 2024 primarily due to market appreciation and a favorable foreign exchange impact, partially offset by net outflows. Model delivery assets under advisement net inflows were $1.2 billion for the three months ended September 30, 2024 compared to $0.2 billion for the prior year period.

Index

AMERIPRISE FINANCIAL, INC.

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


	Three Months Ended September 30,				Change
	2024		2023
	(in millions)
Revenues
Management and financial advice fees	$	760	$	717	$	43	6	%
Distribution fees	98		92		6		7
Net investment income	17		10		7		70
Other revenues	7		7		—		—
Total revenues	882		826		56		7
Banking and deposit interest expense	—		—		—		—
Total net revenues	882		826		56		7
Expenses
Distribution expenses	250		234		16		7
Amortization of deferred acquisition costs	2		1		1		NM
Interest and debt expense	2		2		—		—
General and administrative expense	383		390		(7)		(2)
Total expenses	637		627		10		2
Adjusted operating earnings	$	245	$	199	$	46	23	%
NM Not Meaningful - variance equal to or greater than 100%.

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $46 million, or 23%, for the three months ended September 30, 2024 compared to the prior year period primarily due to equity market appreciation and the positive impact from expense management actions, partially offset by the cumulative impact from net outflows.

Net Revenues

Management and financial advice fees increased $43 million, or 6%, for the three months ended September 30, 2024 compared to the prior year period primarily due to higher average equity markets, partially offset by the cumulative impact from net outflows.

Distribution fees increased $6 million, or 7%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting market appreciation, partially offset by the cumulative impact from net outflows.

Expenses

Distribution expenses increased $16 million, or 7%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting market appreciation, partially offset by the cumulative impact from net outflows.

General and administrative expense decreased $7 million, or 2%, for the three months ended September 30, 2024 compared to the prior year period reflecting the initial benefits from our initiatives to enhance operational efficiency and effectiveness.

Index

AMERIPRISE FINANCIAL, INC.

Retirement & Protection Solutions

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


	Three Months Ended September 30,					Change
2024			2023
(in millions)
Revenues
Management and financial advice fees	$	196		$	186	$	10	5	%
Distribution fees	106			101		5		5
Net investment income	281			215		66		31
Premiums, policy and contract charges	388			372		16		4
Other revenues	2			2		—		—
Total revenues	973			876		97		11
Banking and deposit interest expense	—			—		—		—
Total net revenues	973			876		97		11
Expenses
Distribution expenses	131			117		14		12
Interest credited to fixed accounts	92			94		(2)		(2)
Benefits, claims, losses and settlement expenses	253			168		85		51
Remeasurement (gains) losses of future policy benefit reserves	(25)			(10)		(15)		NM
Change in fair value of market risk benefits	257			259		(2)		(1)
Amortization of deferred acquisition costs	57			57		—		—
Interest and debt expense	11			12		(1)		(8)
General and administrative expense	79			79		—		—
Total expenses	855			776		79		10
Adjusted operating earnings	$	118		$	100	$	18	18	%
NM Not Meaningful - variance equal to or greater than 100%.

Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $18 million, or 18%, for the three months ended September 30, 2024 compared to prior year period primarily reflecting higher investment portfolio yields and market appreciation, partially offset by higher expenses associated with increased sales.

Variable annuity account balances increased 17% to $87.7 billion as of September 30, 2024 compared to the prior year period due to market appreciation, partially offset by net outflows of $3.5 billion. Variable annuity sales increased 13% compared to the prior year period primarily reflecting an increase in sales of SVAs. Account values with living benefit riders declined to 51% as of September 30, 2024 compared to 55% a year ago reflecting our actions to optimize our business mix. This trend is expected to continue and meaningfully shift the mix of business away from products with living benefit guarantees over time.

Net Revenues

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

Expenses

Distribution expenses increased $14 million, or 12%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting market appreciation and higher sales of SVAs.

Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, increased $85 million, or 51%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting increased volume in SVAs.

Index

AMERIPRISE FINANCIAL, INC.

Corporate & Other

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


	Three Months Ended September 30,				Change
	2024		2023
	(in millions)
Revenues

Distribution fees	$	—	$	1	$	(1)	NM
Net investment income	53		71		(18)		(25)	%
Premiums, policy and contract charges	24		25		(1)		(4)
Other revenues	45		52		(7)		(13)
Total revenues	122		149		(27)		(18)
Banking and deposit interest expense	7		6		1		17
Total net revenues	115		143		(28)		(20)
Expenses
Distribution expenses	(3)		(3)		—		—
Interest credited to fixed accounts	55		59		(4)		(7)
Benefits, claims, losses and settlement expenses	56		59		(3)		(5)
Remeasurement (gains) losses of future policy benefit reserves	3		(2)		5		NM

Amortization of deferred acquisition costs	—		4		(4)		NM
Interest and debt expense	32		28		4		14
General and administrative expense	115		70		45		64
Total expenses	258		215		43		20
Adjusted operating loss	$	(143)	$	(72)	$	(71)	(99)	%
NM Not Meaningful - variance equal to or greater than 100%.

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

Our Corporate & Other segment pretax adjusted operating loss excludes net realized investment gains or losses, the market impact on fixed annuity benefits (net of hedges), the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impact, gain or loss on disposal of a business that is not considered discontinued operations, integration and restructuring charges, and the impact of consolidating CIEs. Our Corporate & Other segment pretax adjusted operating loss increased $71 million for the three months ended September 30, 2024 compared to the prior year period.

LTC insurance had a pretax adjusted operating earnings of $9 million for the three months ended September 30, 2024 compared to pretax adjusted operating earnings of $10 million for the prior year period primarily reflecting an unfavorable unlocking impact in the current period, along with a favorable impact in the prior year period, offset by improved claims experience and the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.

The FA business had a pretax adjusted operating loss of $7 million for the three months ended September 30, 2024 compared to a pretax adjusted operating loss of $8 million for the prior year period. Fixed deferred annuity account balances declined 11% to $5.8 billion as of September 30, 2024 compared to the prior year period as policies continue to lapse and we previously discontinued new sales of fixed deferred annuities.

Net 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, decreased $18 million, or 25%, for the three months ended September 30, 2024 compared to the prior year period primarily reflecting adjustments and updates made in the fourth quarter of 2023 to the allocation of investment income across business segments that reflected increased market volatility and the interest rate environment.

Index

AMERIPRISE FINANCIAL, INC.

Expenses

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

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

The following table presents our consolidated results of operations:


	Nine Months Ended September 30,				Change
	2024		2023
	(in millions)
Revenues
Management and financial advice fees	$	7,428	$	6,623	$	805	12	%
Distribution fees	1,524		1,462		62		4
Net investment income	2,756		2,318		438		19
Premiums, policy and contract charges	1,180		1,135		45		4
Other revenues	389		390		(1)		—
Total revenues	13,277		11,928		1,349		11
Banking and deposit interest expense	514		385		129		34
Total net revenues	12,763		11,543		1,220		11
Expenses
Distribution expenses	4,408		3,771		637		17
Interest credited to fixed accounts	435		464		(29)		(6)
Benefits, claims, losses and settlement expenses	1,056		748		308		41
Remeasurement (gains) losses of future policy benefit reserves	(34)		(17)		(17)		NM
Change in fair value of market risk benefits	658		558		100		18
Amortization of deferred acquisition costs	181		185		(4)		(2)
Interest and debt expense	252		240		12		5
General and administrative expense	2,892		2,854		38		1
Total expenses	9,848		8,803		1,045		12
Pretax income	2,915		2,740		175		6
Income tax provision	585		561		24		4
Net income	$	2,330	$	2,179	$	151	7	%
NM Not Meaningful - variance equal to or greater than 100%.

Overall

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

A favorable impact from higher average equity markets compared to the prior year period. Our average WEI, which is a proxy for equity movements on AUM, increased 21% in the nine months ended September 30, 2024 compared to the prior year period. The average S&P 500 index was 25% higher in the nine months ended September 30, 2024 compared to the prior year period.
A favorable impact from the trend in rising investment portfolio yields, along with higher average balances in Ameriprise Bank customer deposits, certificate and SVA products.
The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was an expense of $322 million for the nine months ended September 30, 2024 compared to an expense of $137 million for the prior year period.
An unfavorable impact from the cumulative impact of Asset Management net outflows.

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

Index

AMERIPRISE FINANCIAL, INC.

Net Revenues

Management and financial advice fees increased $805 million, or 12%, for the nine months ended September 30, 2024 compared to the prior year period reflecting market appreciation and continued wrap account net inflows, partially offset by the cumulative impact of Asset Management net outflows.

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

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

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

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

Banking and deposit interest expense increased $129 million, or 34%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and Ameriprise Bank cash deposits.

Expenses

Distribution expenses increased $637 million, or 17%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting higher advisor compensation from higher average wrap account assets and increased transactional activity, as well as continued investments in recruiting experienced advisors.

Interest credited to fixed accounts decreased $29 million, or 6%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting the following items:

A $39 million decrease in expense from other market impacts on IUL benefits, net of hedges, which was a benefit of $23 million for the nine months ended September 30, 2024 compared to an expense of $16 million for the prior year period. The decrease in expense was primarily due to a decrease in the IUL embedded derivative in the current period, which reflected model changes and more discounting due to higher Treasury rates, partially offset by higher option costs due to a higher option budget.
A $23 million increase in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits. The unfavorable impact of the nonperformance credit spread was $17 million for the nine months ended September 30, 2024 compared to a favorable impact of $6 million for the prior year period.

Benefits, claims, losses and settlement expenses increased $308 million, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting a $130 million increase in expense from market impacts on SVA embedded derivative, net of hedges in place to offset those risks. This increase was primarily the result of a favorable $804 million change in the market impact on derivatives hedging the SVA embedded derivative and an unfavorable $916 million change in the market impact on SVA embedded derivative. The main market driver contributing to these changes was the equity market impact on the SVA embedded derivative net of the impact on the corresponding hedge assets resulted in a higher expense for the nine months ended September 30, 2024 compared to the prior year period. This increase also reflects the impact of higher sales of life contingent payout annuities and increased volume in SVAs.

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

A $69 million increase in expense from market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks. This increase was the result of an unfavorable $437 million change in the market impact on variable annuity guaranteed benefits reserves and a favorable $392 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits. The main market drivers contributing to these changes are summarized below:
Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a higher benefit for the nine months ended September 30, 2024 compared to the prior year period.
Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in an expense for the nine months ended September 30, 2024 compared to a benefit for the prior year period.
Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a higher expense for the nine months ended September 30, 2024 compared to the prior year period.

Index

AMERIPRISE FINANCIAL, INC.

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

General and administrative expense increased $38 million, or 1%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting $44 million of higher severance expenses, higher volume related expenses and investments for business growth, partially offset by ongoing benefits from our initiatives to enhance operational efficiency and effectiveness, as well as a $20 million accrual for a regulatory matter relating to electronic communication recordkeeping requirements and integration related expenses in the prior year period.

Income Taxes

Our effective tax rate was 20.0% for the nine months ended September 30, 2024 compared to 20.5% for the prior year period. See Note 16 to our Consolidated Financial Statements for additional discussion on income taxes.

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

The following table presents summary financial information by segment:


	Nine Months Ended September 30,
2024			2023
(in millions)
Advice & Wealth Management
Net revenues	$	7,946		$	7,015
Expenses	5,536			4,862
Adjusted operating earnings	$	2,410		$	2,153
Asset Management
Net revenues	$	2,585		$	2,433
Expenses	1,916			1,907
Adjusted operating earnings	$	669		$	526
Retirement & Protection Solutions
Net revenues	$	2,813		$	2,558
Expenses	2,300			2,075
Adjusted operating earnings	$	513		$	483
Corporate & Other
Net revenues	$	347		$	417
Expenses	698			623
Adjusted operating loss	$	(351)		$	(206)

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

Advice & Wealth Management

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


	2024		2023
(in billions)
Beginning balance	$	488.2	$	412.1
Net flows	22.0		17.3
Market appreciation (depreciation) and other	58.9		14.7
Ending balance	$	569.1	$	444.1

Advisory wrap account assets ending balance (1)	$	563.4	$	439.3
Average advisory wrap account assets (2)	$	515.1	$	435.6

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

Index

AMERIPRISE FINANCIAL, INC.

Ending wrap account assets increased $80.9 billion, or 17%, to $569.1 billion during the nine months ended September 30, 2024 due to market appreciation and other of $58.9 billion and net inflows of $22.0 billion. Average advisory wrap account assets increased $79.5 billion, or 18%, compared to the prior year period reflecting market appreciation and net inflows.

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


	Nine Months Ended September 30,				Change
	2024		2023
	(in millions)
Revenues
Management and financial advice fees	$	4,739	$	4,077	$	662	16	%
Distribution fees	1,820		1,714		106		6
Net investment income	1,674		1,409		265		19
Other revenues	227		200		27		14
Total revenues	8,460		7,400		1,060		14
Banking and deposit interest expense	514		385		129		34
Total net revenues	7,946		7,015		931		13
Expenses
Distribution expenses	4,260		3,622		638		18

Interest and debt expense	28		19		9		47
General and administrative expense	1,248		1,221		27		2
Total expenses	5,536		4,862		674		14
Adjusted operating earnings	$	2,410	$	2,153	$	257	12	%

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $257 million, or 12%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting market appreciation, higher average short-term interest rates and higher average bank cash deposits and certificate balances along with the cumulative impact of client net flows. Pretax adjusted operating margin was 30.3% for the nine months ended September 30, 2024 compared to 30.7% for the prior year period.

Ameriprise Bank is continuing its deposit growth trend, with bank deposit balances increasing $0.8 billion from the prior year period to $21.7 billion. The daily average interest-bearing deposit balance increased to $21.4 billion for the nine months ended September 30, 2024 compared to $20.1 billion for the prior year period with the average interest rate paid on deposits increasing to 0.44% for the nine months ended September 30, 2024 from 0.38% for the prior year period. Profitability at the bank increased compared to the prior year period primarily reflecting increased interest rates along with growth in deposits. ACC client deposits decreased $0.6 billion from the prior year period to $12.0 billion. After a period of strong growth during a rising interest rate environment, ACC has experienced net outflows during the nine months ended September 30, 2024.

Net Revenues

Management and financial advice fees increased $662 million, or 16%, for the nine months ended September 30, 2024 compared to the prior year period primarily due to higher average wrap account assets. Average advisory wrap account assets increased $79.5 billion, or 18%, compared to the prior year period reflecting market appreciation and net inflows.

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

Net investment income, which excludes net realized investment gains or losses, increased $265 million, or 19%, for the nine months ended September 30, 2024 compared to the prior year period primarily due to higher average invested assets due to increased bank and certificate deposits and the favorable impact of increasing investment yields on the investment portfolios supporting the bank cash deposits and certificate products.

Expenses

Distribution expenses increased $638 million, or 18%, for the nine months ended September 30, 2024 compared to the prior year period reflecting higher advisor compensation from higher average wrap account assets and increased transactional activity, as well as continued investments in recruiting experienced advisors.

Index

AMERIPRISE FINANCIAL, INC.

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

Asset Management


The following table presents global managed assets by type:													Average (1)				Change
	As of September 30,						Change					Nine Months Ended September 30,
2024			2023			2024			2023
	(in billions)
Equity	$	353.8		$	299.1		$	54.7		18	%		$	337.5	$	310.3	$	27.2	9	%
Fixed income	243.5			214.9			28.6			13			233.7		220.7		13.0		6
Money market	21.7			22.7			(1.0)			(4)			22.5		22.6		(0.1)		—
Alternative	33.3			33.6			(0.3)			(1)			33.2		34.8		(1.6)		(5)
Hybrid and other	19.8			16.9			2.9			17			18.9		17.2		1.7		10
Total managed assets	$	672.1		$	587.2		$	84.9		14	%		$	645.8	$	605.6	$	40.2	7	%

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

The following table presents the changes in global managed assets:


	Nine Months Ended September 30,
	2024		2023
	(in billions)
Global Retail Funds
Beginning assets	$	334.9	$	309.3
Inflows	39.7		34.9
Outflows	(50.6)		(47.9)
Net VP/VIT fund flows	(4.9)		(3.7)
Net new flows	(15.8)		(16.7)
Reinvested dividends	4.3		3.4
Net flows	(11.5)		(13.3)
Distributions	(5.1)		(4.1)
Market appreciation (depreciation) and other	40.8		17.5
Foreign currency translation (1)	3.3		0.8
Total ending assets	362.4		310.2

Global Institutional
Beginning assets	302.0		274.7
Inflows (2)	27.8		32.9
Outflows (2)	(37.6)		(31.6)
Net flows	(9.8)		1.3
Market appreciation (depreciation) and other (3)	10.5		(0.1)
Foreign currency translation (1)	7.0		1.1
Total ending assets	309.7		277.0

Total managed assets	$	672.1	$	587.2
Total net flows	$	(21.3)	$	(12.0)

Legacy insurance partners net flows (4)	$	(10.8)	$	(3.1)

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

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

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

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Total segment AUM increased $35.2 billion, or 6%, during the nine months ended September 30, 2024 primarily due to equity market appreciation, partially offset by net outflows. Net outflows were $21.3 billion for the nine months ended September 30, 2024 and included an $8.0 billion asset transfer related to a legacy insurance partner. Model delivery assets under advisement net inflows were $2.4 billion for the nine months ended September 30, 2024 compared to $0.5 billion for the prior year period.

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


	Nine Months Ended September 30,				Change
	2024		2023
	(in millions)
Revenues
Management and financial advice fees	$	2,240	$	2,110	$	130	6	%
Distribution fees	289		272		17		6
Net investment income	40		29		11		38
Other revenues	16		22		(6)		(27)
Total revenues	2,585		2,433		152		6
Banking and deposit interest expense	—		—		—		—
Total net revenues	2,585		2,433		152		6
Expenses
Distribution expenses	736		697		39		6
Amortization of deferred acquisition costs	5		4		1		25
Interest and debt expense	5		5		—		—
General and administrative expense	1,170		1,201		(31)		(3)
Total expenses	1,916		1,907		9		—
Adjusted operating earnings	$	669	$	526	$	143	27	%

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $143 million, or 27%, for the nine months ended September 30, 2024 compared to the prior year period primarily due to equity market appreciation and the positive impact from expense management actions, partially offset by the cumulative impact from net outflows.

Net Revenues

Management and financial advice fees increased $130 million, or 6%, for the nine months ended September 30, 2024 compared to the prior year period primarily due to equity market appreciation, partially offset by the cumulative impact from net outflows.

Distribution fees increased $17 million, or 6%, for the nine months ended September 30, 2024 compared to the prior year period primarily due to market appreciation.

Expenses

Distribution expenses increased $39 million, or 6%, for the nine months ended September 30, 2024 compared to the prior year period primarily due to market appreciation, partially offset by the cumulative impact from net outflows.

General and administrative expense decreased $31 million, or 3%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting the initial benefits from our initiatives to enhance operational efficiency and effectiveness.

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Retirement & Protection Solutions

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


	Nine Months Ended September 30,					Change
2024			2023
(in millions)
Revenues
Management and financial advice fees	$	574		$	554	$	20	4	%
Distribution fees	314			298		16		5
Net investment income	790			613		177		29
Premiums, policy and contract charges	1,129			1,086		43		4
Other revenues	6			7		(1)		(14)
Total revenues	2,813			2,558		255		10
Banking and deposit interest expense	—			—		—		—
Total net revenues	2,813			2,558		255		10
Expenses
Distribution expenses	384			347		37		11
Interest credited to fixed accounts	276			276		—		—
Benefits, claims, losses and settlement expenses	703			518		185		36
Remeasurement (gains) losses of future policy benefit reserves	(32)			(17)		(15)		(88)
Change in fair value of market risk benefits	528			497		31		6
Amortization of deferred acquisition costs	171			172		(1)		(1)
Interest and debt expense	35			37		(2)		(5)
General and administrative expense	235			245		(10)		(4)
Total expenses	2,300			2,075		225		11
Adjusted operating earnings	$	513		$	483	$	30	6	%

Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $30 million, or 6%, for the nine months ended September 30, 2024 compared to the prior year period, primarily reflecting higher investment portfolio yields and market appreciation, partially offset by higher expenses associated with increased sales.

Net Revenues

Management and financial advice fees increased $20 million, or 4%, for the nine months ended September 30, 2024 compared to the prior year period primarily due to market appreciation, partially offset by the impact from variable annuity net outflows.

Distribution fees increased $16 million, or 5%, for the nine months ended September 30, 2024 compared to the prior year period primarily due to market appreciation.

Net investment income, which excludes net realized investment gains or losses, increased $177 million, or 29%, for the nine months ended September 30, 2024 compared to the prior year period primarily due to higher investment portfolio yields from investment portfolio repositioning and increased SVA balances.

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

Expenses

Distribution expenses increased $37 million, or 11%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting market appreciation and higher sales of SVAs.

Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, increased $185 million, or 36%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting the impact of higher sales of life contingent payout annuities and increased volume in SVAs.

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

Corporate & Other

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


	Nine Months Ended September 30,				Change
	2024		2023
	(in millions)
Revenues

Distribution fees	$	—	$	1	$	(1)	NM
Net investment income	158		198		(40)		(20)	%
Premiums, policy and contract charges	70		72		(2)		(3)
Other revenues	141		159		(18)		(11)
Total revenues	369		430		(61)		(14)
Banking and deposit interest expense	22		13		9		69
Total net revenues	347		417		(70)		(17)
Expenses
Distribution expenses	(7)		(7)		—		—
Interest credited to fixed accounts	164		177		(13)		(7)
Benefits, claims, losses and settlement expenses	166		175		(9)		(5)
Remeasurement (gains) losses of future policy benefit reserves	(2)		—		(2)		—

Amortization of deferred acquisition costs	5		9		(4)		(44)
Interest and debt expense	83		75		8		11
General and administrative expense	289		194		95		49
Total expenses	698		623		75		12
Adjusted operating loss	$	(351)	$	(206)	$	(145)	(70)	%
NM Not Meaningful - variance equal to or greater than 100%.

Our Corporate & Other segment pretax adjusted operating loss excludes net realized investment gains or losses, the market impact on fixed index annuity benefits (net of hedges), the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impact, gain or loss on disposal of a business that is not considered discontinued operations, integration and restructuring charges, and the impact of consolidating CIEs. Our Corporate & Other segment pretax adjusted operating loss increased $145 million, or 70%, for the nine months ended September 30, 2024 compared to the prior year period.

LTC insurance had pretax adjusted operating earnings of $37 million for the nine months ended September 30, 2024 compared to pretax adjusted operating earnings of $19 million for the prior year period primarily reflecting improved claims experience and the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.

The FA business had a pretax adjusted operating loss of $21 million for the nine months ended September 30, 2024 compared to a pretax adjusted operating loss of $22 million for the prior year period.

Net Revenues

Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, integration and restructuring charges, and the impact of consolidating CIEs, decreased $40 million, or 20%, for the nine months ended September 30, 2024 compared to the prior year period primarily due to a $12 million benefit in our affordable housing partnerships in the prior year period, as well as adjustments and updates made in the fourth quarter of 2023 to the allocation of investment income across business segments that reflected increased market volatility and the interest rate environment.

Other revenues decreased $18 million, or 11%, for the nine months ended September 30, 2024 compared to the prior year period primarily reflecting the yield on deposit receivables arising from reinsurance transactions.

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Expenses

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

Fair Value Measurements

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 price review, price comparison across pricing vendors and due diligence reviews of vendors. See Note 12 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 September 30, 2024. As our estimate of this spread widens or tightens, the liability will decrease or increase, respectively. If this nonperformance credit spread moves to a zero spread over the U.S. Treasury curve, the reduction to future total equity would be approximately $639 million, net of the reinsurance accrual and income taxes (calculated at the statutory tax rate of 21%), based on September 30, 2024 credit spreads.

Liquidity and Capital Resources

Overview

As of September 30, 2024 and December 31, 2023, we had Available Capital for Capital Adequacy of $5.5 billion and $5.4 billion, respectively. Available Capital for Capital Adequacy best reflects the available capital resources of our core operations.

We maintained substantial liquidity during the nine months ended September 30, 2024. As of September 30, 2024 and December 31, 2023, we had $10.6 billion and $7.5 billion, respectively, in cash and cash equivalents excluding CIEs and other restricted cash on a consolidated basis.

As of September 30, 2024 and December 31, 2023, the parent company had $1.4 billion and $544 million, respectively, in cash, cash equivalents, and unencumbered liquid securities. Liquid securities predominantly include U.S. government agency mortgage backed securities. Additional sources of liquidity at the parent company include a line of credit with an affiliate up to $714 million and an unsecured revolving committed credit facility for up to $1.0 billion that expires in June 2026. Management’s estimate of liquidity available to the parent company in a volatile and uncertain economic environment as of September 30, 2024 was $2.6 billion which includes cash, cash equivalents, unencumbered liquid securities, the line of credit with an affiliate and a portion of the committed credit facility.

Under the terms of the committed credit facility, we can increase the availability to $1.25 billion upon satisfaction of certain approval requirements. Available borrowings under this facility are reduced by any outstanding letters of credit. At September 30, 2024, we had no outstanding borrowings under this credit facility and had $1 million of letters of credit issued against the facility. Our credit facility contains various administrative, reporting, legal and financial covenants. We remained in compliance with all such covenants at September 30, 2024.

In addition, we have access to collateralized borrowings, which may include repurchase agreements, Federal Home Loan Bank (“FHLB”) advances, and advances at the Federal Reserve. Our subsidiaries, RiverSource Life Insurance Company (“RiverSource Life”), and Ameriprise Bank are members of the FHLB of Des Moines, which provides access to collateralized borrowings. As of September 30, 2024 and December 31, 2023, we had $8.5 billion and $8.6 billion, respectively, of estimated borrowing capacity under the FHLB facilities, of which $201 million was outstanding as of both September 30, 2024 and December 31, 2023, and is collateralized with commercial mortgage backed securities and residential mortgage backed securities. In addition, Ameriprise Bank maintains access to borrowings from the Federal Reserve which are collateralized with residential mortgage backed securities, commercial mortgage backed securities and corporate debt securities. As of September 30, 2024 and December 31, 2023, we estimated $11.9 billion and $12.3 billion, respectively, of borrowing capacity from the Federal Reserve in addition to the FHLB capacity and there were no outstanding obligations.

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There have been no material changes to our contractual obligations disclosed in our 2023 10-K.

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

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

On August 16, 2022, federal legislation commonly referred to as the Inflation Reduction Act of 2022 (“IRA”) was enacted. We have evaluated the tax provisions of the IRA, the most significant of which are the corporate alternative minimum tax (“CAMT”) and the share repurchase excise tax. Both the CAMT and share repurchase tax were effective beginning in 2023. We are an applicable corporation required to compute CAMT; and, based on current estimates, we recorded a CAMT liability for 2024. The U.S. Department of the Treasury issued proposed CAMT regulations in the current quarter. The proposed regulations are subject to public review and comment prior to finalizing. The Company is evaluating the potential impact of the proposed regulations. We are a covered corporation subject to the 1% excise tax on the net shares repurchased. We have recorded in shareholders’ equity an estimate of the excise tax liability based on our interpretation of the current guidance. As additional guidance is issued related to the IRA, we will continue to evaluate any impact to our consolidated financial statements.

In December 2021, the Organization for Economic Co-operation and Development published the Pillar Two model rules which introduce new taxing mechanisms aimed at ensuring multinational enterprises pay a minimum level of tax on profits from each jurisdiction in which they operate. Various jurisdictions in which we operate have enacted or substantively enacted Pillar Two legislation that became effective beginning January 1, 2024. We intend to rely on Pillar Two transitional safe harbors where available and, based on the current estimate, have not recorded any Pillar Two tax liabilities. We continue to monitor the adoption and implementation of these rules and evaluate the potential impact on 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”), Ameriprise Bank, 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. (“CMIS”), our investment advisory company, Columbia Management Investment Advisers, LLC (“CMIA”), 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. For example, RiverSource Life payments in excess of statutory unassigned funds require advanced notice to the Minnesota Department of Commerce (“MN DOC”), RiverSource Life’s primary regulator, and are subject to potential disapproval. In addition, dividends and other distributions whose fair market value, together with that of other dividends or distributions made within the preceding 12 months, exceeds the greater of the previous year’s statutory net gain from operations or 10% of the previous year-end statutory capital and surplus are referred to as “extraordinary dividends.” Extraordinary dividends also require advanced notice to MN DOC, and are subject to potential disapproval.

Our broker-dealer subsidiaries are subject to the Uniform Net Capital Rule (Rule 15c3-1) under the Securities Exchange Act of 1934. Rule 15c3-1 provides an “alternative net capital requirement” which AEIS and AFS (significant broker dealers) have elected. Regulations require that minimum net capital, as defined, be equal to the greater of $250 thousand or 2% of aggregate debit items arising from client balances. The Financial Industry Regulatory Authority (“FINRA”) may impose certain restrictions, such as restricting withdrawals of equity capital, if a member firm were to fall below a certain threshold or fail to meet minimum net capital requirements.

Ameriprise Bank is subject to regulation by the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation in its role as insurer of its deposits. Ameriprise Bank is required to maintain minimum amounts and ratios of Total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), Tier 1 Capital to average assets (as defined), and under rules defined under the Basel III capital framework, Common equity Tier 1 capital (“CEIT”) to risk-weighted assets. Ameriprise Bank calculates these ratios under the Basel III standardized approach in order to assess compliance with both regulatory requirements and Ameriprise Bank’s internal capital policies. As permitted under the rules of the Basel III capital framework, we have elected to exclude AOCI from the calculation of regulatory capital.

ACC is registered as an investment company under the Investment Company Act of 1940 (the “1940 Act”). ACC markets and sells investment certificates to clients. ACC is subject to various capital requirements under the 1940 Act, laws of the State of Minnesota

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and understandings with the SEC and the Minnesota Department of Commerce. The terms of the investment certificates issued by ACC and the provisions of the 1940 Act also require the maintenance by ACC of qualified assets.

Actual capital and the regulatory capital requirement for TAM UK International Holdings Ltd. and Columbia Threadneedle Investments UK International Ltd. are calculated and reported as a single consolidated group under TAM UK International Holdings Ltd. Required capital for these entities is predominantly based on the requirements specified by its regulator, the Financial Conduct Authority (“FCA”), under its Capital Adequacy Requirements for investment firms.

Actual capital and regulatory capital requirements for our wholly owned subsidiaries subject to regulatory capital requirements were as follows:


	Actual Capital					Regulatory Capital Requirements
	September 30, 2024		December 31, 2023		September 30, 2024			December 31, 2023
	(in millions)
RiverSource Life (1)	$	2,721	$	3,093		N/A			$	512
RiverSource Life of NY (1)	261		244			N/A			40
ACC (3)(4)	688		765			$	639		717
TAM UK International Holdings Ltd. (5)	748		706			284			317

Ameriprise Bank (6)	1,736		1,715			1,174			1,153
AFS (2)(3)	189		101			#			#
Ameriprise Captive Insurance Company (2)	44		39			14			11
Ameriprise Trust Company (2)	71		62			51			45
AEIS (2)(3)	169		171			30			29
RiverSource Distributors, Inc. (2)(3)	18		13			#			#
Columbia Management Investment Distributors, Inc. (2)(3)	18		17			#			#

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 September 30, 2024 and December 31, 2023.

(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 October 2023, the Federal Reserve Board (“FRB”) issued its final rule establishing a consolidated capital framework termed the “Building Block Approach” for savings and loan holding companies like Ameriprise Financial that are significantly engaged in insurance activities. The rule became effective January 1, 2024, with reporting to the FRB beginning in 2025.

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

During the nine months ended September 30, 2024, the parent holding company received cash dividends or a return of capital from its subsidiaries of $3.2 billion (including $525 million from Ameriprise Bank, $600 million from RiverSource Life and $1.2 billion from AMPF Holding, LLC) and contributed cash to its subsidiaries of $95 million. During the nine months ended September 30, 2023, the parent holding company received cash dividends or a return of capital from its subsidiaries of $2.3 billion (including $500 million from RiverSource Life and $1.1 billion from AMPF Holding, LLC) and contributed cash to its subsidiaries of $277 million.

In 2009, RiverSource Life established an agreement to protect its exposure to Genworth Life Insurance Company (“GLIC”) for its reinsured LTC. In 2016, substantial enhancements to this reinsurance protection agreement were finalized. The terms of these confidential provisions within the agreement have been shared, in the normal course of regular reviews, with our domiciliary regulator and rating agencies. GLIC is domiciled in Delaware, so in the event GLIC was subjected to rehabilitation or insolvency proceedings, such proceedings would be located in (and governed by) Delaware laws. Delaware courts have a long tradition of respecting commercial and reinsurance affairs as well as contracts among sophisticated parties. Similar credit protections to what we have with GLIC have been tested and respected in Delaware and elsewhere in the United States, and as a result we believe our credit protections would be respected even in the unlikely event that GLIC becomes subject to rehabilitation or insolvency proceedings in Delaware. Accordingly, while no credit protections are perfect, we believe the correct way to think about the risks represented by our

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counterparty credit exposure to GLIC is not the full amount of the gross liability that GLIC reinsures, but a much smaller net exposure to GLIC (if any that might exist after taking into account our credit protections). Thus, management believes that our agreement and offsetting non-LTC legacy arrangements with Genworth Financial, Inc. will enable RiverSource Life to recover on all net exposure in all material respects in the event of a rehabilitation or insolvency of GLIC.

Dividends Paid to Shareholders and Share Repurchases

We paid regular quarterly dividends to our shareholders totaling $444 million and $427 million for the nine months ended September 30, 2024 and 2023, respectively. On October 23, 2024, we announced a quarterly dividend of $1.48 per common share. The dividend will be paid on November 15, 2024 to our shareholders of record at the close of business on November 4, 2024.

On July 24, 2023, our Board of Directors authorized an additional $3.5 billion for the repurchase of our common stock through September 30, 2025. As of September 30, 2024, we had $1.5 billion remaining under this share repurchase authorization. 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 nine months ended September 30, 2024, we repurchased a total of 3.8 million shares of our common stock at an average price of $426.72 per share.

Cash Flows

Cash flows of CIEs and restricted and segregated cash and cash equivalents are reflected in our cash flows provided by (used in) operating activities, investing activities and financing activities. Cash held by CIEs is not available for general use by Ameriprise Financial, nor is Ameriprise Financial cash available for general use by its CIEs. Cash and cash equivalents segregated under federal and other regulations is held for the exclusive benefit of our brokerage customers and is not available for general use by Ameriprise Financial.

Operating Activities

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

Investing Activities

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

Net cash provided by investing activities was $232 million for the nine months ended September 30, 2024 compared to net cash used in investing activities of $7.3 billion for the prior year period. The increase in net cash provided by investing activities primarily reflects a $4.5 billion increase in proceeds from maturities, sinking fund payments and calls of Available-for-Sale securities, a $2.6 billion decrease in purchases of Available-for-Sale securities and a $1.1 billion increase in proceeds from sales of Available-for-Sale securities.

Financing Activities

Net cash used in financing activities was $3.7 billion for the nine months ended September 30, 2024 compared to net cash provided by financing activities of $4.0 billion for the prior year period. The decrease in net cash provided by financing activities primarily reflects a $4.8 billion decrease in net cash flows from investment certificates and a $2.4 billion decrease in the change in banking deposits, net due to the strong growth in the prior year period.

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, 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;

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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;
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, or other potential strategic acquisitions or divestitures;
legal and regulatory actions brought against us;
changes to laws and regulations that govern operation of our business;
supervision by bank regulators and related regulatory and prudential standards as a savings and loan holding company that may limit our activities and strategies;
changes in corporate tax laws and regulations and interpretations and determinations of tax laws impacting our products;
protection of our intellectual property and claims we infringe the intellectual property of others; and
changes in and the adoption of new accounting standards.

Management cautions the reader that the foregoing list of factors is not exhaustive. There may also be other risks that management is unable to predict at this time that may cause actual results to differ materially from those in forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Management undertakes no obligation to update publicly or revise any forward-looking statements. The foregoing list of factors should be read in conjunction with the “Risk Factors” discussion included in Part I, Item 1A of our 2023 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

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AMERIPRISE FINANCIAL, INC.

information found on the website is not incorporated by reference into this report or in any other report or document the Company furnishes or files with the SEC.

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