10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM	10-Q		☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the Quarterly Period Ended		March 31, 2022
OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from_______________________to_______________________				Commission File No.	1-32525
---	---		AMERIPRISE FINANCIAL, INC.
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(Exact name of registrant as specified in its charter)			Delaware		13-3180631
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(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)			1099 Ameriprise Financial Center	Minneapolis	Minnesota		55474
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(Address of principal executive offices)				(Zip Code)		Registrant’s telephone number, including area code:	(612)	671-3131
---	---	---		Former name, former address and former fiscal year, if changed since last report:	Not Applicable
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Securities registered pursuant to Section 12(b) of the Act:
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				Trading Symbol	Name of each exchange on which registered
	Common Stock (par value .01 per share)	AMP	New York Stock Exchange

All values are in US Dollars.

| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Yes | ☒ | No | ☐ | | --- | --- | --- | --- | --- || Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Yes | ☒ | No | ☐ | | --- | --- | --- | --- | --- || Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. | | | | | | | --- | --- | --- | --- | --- | --- | | Large Accelerated Filer | ☒ | Accelerated Filer | ☐ | Non-accelerated Filer | ☐ | | | | Smaller reporting company | ☐ | Emerging growth company | ☐ || If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | | --- | --- || Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | Yes | ☐ | No | ☒ | | --- | --- | --- | --- | --- | | Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. | | | | | --- | --- | --- | --- | | | | | Outstanding at April 22, 2022 | | | Common Stock (par value .01 per share) | 109,904,488 shares |

All values are in US Dollars.

AMERIPRISE FINANCIAL, INC.

FORM 10-Q

INDEX

Part I. Financial Information
Item 1. Financial Statements (Unaudited)
	Consolidated Statements of Operations — Three months ended March 31, 2022 and 2021		3
	Consolidated Statements of Comprehensive Income — Three months ended March 31, 2022 and 2021		4
	Consolidated Balance Sheets — March 31, 2022 and December 31, 2021		5
	Consolidated Statements of Equity — Three months ended March 31, 2022 and 2021		6
	Consolidated Statements of Cash Flows — Three months ended March 31, 2022 and 2021		7
	Notes to Consolidated Financial Statements
	1.	Basis of Presentation	9
	2.	Recent Accounting Pronouncements	9
	3.	Revenue from Contracts with Customers	11
	4.	Variable Interest Entities	14
	5.	Investments	18
	6.	Financing Receivables	22
	7.	Deferred Acquisition Costs and Deferred Sales Inducement Costs	26
	8.	Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities	26
	9.	Variable Annuity and Insurance Guarantees	27
	10.	Debt	29
	11.	Fair Values of Assets and Liabilities	29
	12.	Offsetting Assets and Liabilities	40
	13.	Derivatives and Hedging Activities	42
	14.	Shareholders’ Equity	45
	15.	Income Taxes	46
	16.	Contingencies	47
	17.	Earnings per Share	48
	18.	Segment Information	49
Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations			51
Item 3.  Quantitative and Qualitative Disclosures About Market Risk			70
Item 4.  Controls and Procedures			70
Part II.  Other Information			71
Item 1.  Legal Proceedings			71
Item 1A.  Risk Factors			71
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds			71
Item 6.  Exhibits			72
Signatures			73

AMERIPRISE FINANCIAL, INC.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	Three Months Ended March 31,
		2022			2021
			(in millions, except per share amounts)
Revenues
Management and financial advice fees				$	2,459	$	2,102
Distribution fees				446		458
Net investment income				261		377
Premiums, policy and contract charges				368		347
Other revenues				123		71
Total revenues				3,657		3,355
Banking and deposit interest expense				2		5
Total net revenues				3,655		3,350
Expenses
Distribution expenses				1,297		1,175
Interest credited to fixed accounts				141		159
Benefits, claims, losses and settlement expenses				211		653
Amortization of deferred acquisition costs				96		5
Interest and debt expense				40		42
General and administrative expense				947		823
Total expenses				2,732		2,857
Pretax income				923		493
Income tax provision				162		56
Net income				$	761	$	437
Earnings per share
Basic				$	6.69	$	3.65
Diluted				$	6.55	$	3.58

See Notes to Consolidated Financial Statements.

AMERIPRISE FINANCIAL, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended March 31,
		2022			2021
			(in millions)
Net income				$	761	$	437
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment				(46)		(1)
Net unrealized gains (losses) on securities				(853)		(340)
Net unrealized gains (losses) on derivatives				1		—
Defined benefit plans				—		29
Total other comprehensive income (loss), net of tax				(898)		(312)
Total comprehensive income				$	(137)	$	125

See Notes to Consolidated Financial Statements.

AMERIPRISE FINANCIAL, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	March 31, 2022		December 31, 2021
Assets
Cash and cash equivalents	$	6,623	$	7,127
Cash of consolidated investment entities	119		121
Investments (allowance for credit losses: 2022, 18; 2021, 18)	36,040		35,810
Investments of consolidated investment entities, at fair value	2,177		2,184
Separate account assets	89,669		97,491
Receivables (allowance for credit losses: 2022, 51; 2021, 55)	16,193		16,205
Receivables of consolidated investment entities, at fair value	22		17
Deferred acquisition costs	2,928		2,782
Restricted and segregated cash, cash equivalents and investments	2,668		2,795
Other assets	11,084		11,444
Other assets of consolidated investment entities, at fair value	2		3
Total assets	$	167,525	$	175,979
Liabilities and Equity
Liabilities:
Policyholder account balances, future policy benefits and claims	$	35,225	$	35,750
Separate account liabilities	89,669		97,491
Customer deposits	22,048		20,227
Short-term borrowings	200		200
Long-term debt	2,330		2,832
Debt of consolidated investment entities, at fair value	2,156		2,164
Accounts payable and accrued expenses	2,050		2,527
Other liabilities	8,691		8,966
Other liabilities of consolidated investment entities, at fair value	146		137
Total liabilities	162,515		170,294
Equity:
Common shares (.01 par value; shares authorized, 1,250,000,000; shares issued, 335,320,837 and 334,828,117, respectively)	3		3
Additional paid-in capital	9,348		9,220
Retained earnings	18,153		17,525
Treasury shares, at cost (225,174,867 and 223,967,107 shares, respectively)	(21,599)		(21,066)
Accumulated other comprehensive income (loss), net of tax	(895)		3
Total equity	5,010		5,685
Total liabilities and equity	$	167,525	$	175,979

All values are in US Dollars.

See Notes to Consolidated Financial Statements.

AMERIPRISE FINANCIAL, INC.

CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)

		Number of Outstanding Shares	Common Shares		Additional Paid-In Capital		Retained Earnings		Treasury<br>Shares		Accumulated Other<br><br>Comprehensive Income (Loss)		Total
	(in millions, except per share data)
Balances at January 1, 2021		116,765,613	$	3	$	8,822	$	15,292	$	(18,879)	$	629	$	5,867
Net income		—	—		—		437		—		—		437
Other comprehensive loss, net of tax		—	—		—		—		—		(312)		(312)
Dividends to shareholders		—	—		—		(129)		—		—		(129)
Repurchase of common shares		(2,589,698)	—		—		—		(554)		—		(554)
Share-based compensation plans		1,812,356	—		160		—		33		—		193
Balances at March 31, 2021		115,988,271	$	3	$	8,982	$	15,600	$	(19,400)	$	317	$	5,502
Balances at January 1, 2022		110,861,010	$	3	$	9,220	$	17,525	$	(21,066)	$	3	$	5,685
Net income		—	—		—		761		—		—		761
Other comprehensive loss, net of tax		—	—		—		—		—		(898)		(898)
Dividends to shareholders		—	—		—		(133)		—		—		(133)
Repurchase of common shares		(1,930,235)	—		—		—		(579)		—		(579)
Share-based compensation plans		1,215,195	—		128		—		46		—		174
Balances at March 31, 2022		110,145,970	$	3	$	9,348	$	18,153	$	(21,599)	$	(895)	$	5,010

See Notes to Consolidated Financial Statements.

AMERIPRISE FINANCIAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

		Three Months Ended March 31,
	2022			2021
	(in millions)
Cash Flows from Operating Activities
Net income		$	761		$	437
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, amortization and accretion, net		(12)			60
Deferred income tax expense (benefit)		154			60
Share-based compensation		44			35
Net realized investment gains		(18)			(65)
Net trading (gains) losses		—			1
Loss from equity method investments		12			12
Net (gains) losses of consolidated investment entities		3			(19)
Changes in operating assets and liabilities:
Restricted and segregated investments		(124)			(315)
Deferred acquisition costs		43			(60)
Policyholder account balances, future policy benefits and claims, net		(168)			(1,050)
Derivatives, net of collateral		(4)			144
Receivables		(83)			(238)
Brokerage deposits		120			(102)
Accounts payable and accrued expenses		(461)			(163)
Current income tax, net		(27)			90
Deferred taxes, net		2			(115)
Other operating assets and liabilities of consolidated investment entities, net		8			4
Other, net		159			284
Net cash provided by (used in) operating activities		409			(1,000)
Cash Flows from Investing Activities
Available-for-Sale securities:
Proceeds from sales		—			92
Maturities, sinking fund payments and calls		2,209			2,964
Purchases		(3,972)			(3,245)
Proceeds from sales, maturities and repayments of mortgage loans		32			55
Funding of mortgage loans		(51)			(22)
Proceeds from sales, maturities and collections of other investments		15			54
Purchase of other investments		(5)			(31)
Purchase of investments by consolidated investment entities		(190)			(737)
Proceeds from sales, maturities and repayments of investments by consolidated investment entities		183			240
Purchase of land, buildings, equipment and software		(44)			(22)
Cash paid for written options with deferred premiums		—			(211)
Cash received from written options with deferred premiums		12			21
Cash paid for deposit receivables		(12)			(2)
Cash received for deposit receivables		134			21
Other, net		24			14
Net cash provided by (used in) investing activities		$	(1,665)		$	(809)
See Notes to Consolidated Financial Statements.

AMERIPRISE FINANCIAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)
		Three Months Ended March 31,
	2022			2021
	(in millions)
Cash Flows from Financing Activities
Investment certificates:
Proceeds from additions		$	733		$	723
Maturities, withdrawals and cash surrenders		(835)			(1,224)
Policyholder account balances:
Deposits and other additions		285			384
Net transfers from (to) separate accounts		(57)			(60)
Surrenders and other benefits		(328)			(368)
Change in banking deposits, net		1,802			580
Cash paid for purchased options with deferred premiums		(71)			(42)
Cash received from purchased options with deferred premiums		168			306
Issuance of long-term debt		—			4
Repayments of long-term debt		(502)			(2)
Dividends paid to shareholders		(129)			(129)
Repurchase of common shares		(541)			(470)
Borrowings of consolidated investment entities		—			797
Repayments of debt by consolidated investment entities		(1)			(63)
Other, net		(6)			(3)
Net cash provided by (used in) financing activities		518			433
Effect of exchange rate changes on cash		(20)			9
Net increase (decrease) in cash and cash equivalents, including amounts restricted		(758)			(1,367)
Cash and cash equivalents, including amounts restricted, at beginning of period		9,569			8,903
Cash and cash equivalents, including amounts restricted, at end of period		$	8,811		$	7,536
Supplemental Disclosures:
Interest paid excluding consolidated investment entities		$	27		$	30
Interest paid by consolidated investment entities		13			11
Income taxes paid, net		34			36
Leased assets obtained in exchange for operating lease liabilities		13			44
Non-cash investing activity:
Exchange of an investment that resulted in a realized gain and an increase to amortized cost		—			17
		March 31, 2022			December 31, 2021
		(in millions)
Reconciliation of cash and cash equivalents, including amounts restricted:
Cash and cash equivalents		$	6,623		$	7,127
Cash of consolidated investment entities		119			121
Restricted and segregated cash, cash equivalents and investments		2,668			2,795
Less: Restricted and segregated investments		(599)			(474)
Total cash and cash equivalents including amounts restricted per consolidated statements of cash flows		$	8,811		$	9,569
See Notes to Consolidated Financial Statements.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. Basis of Presentation

Ameriprise Financial, Inc. is a holding company, which primarily conducts business through its subsidiaries to provide financial planning, products and services that are designed to be utilized as solutions for clients’ cash and liquidity, asset accumulation, income, protection and estate and wealth transfer needs. The foreign operations of Ameriprise Financial, Inc. are conducted primarily through Columbia Threadneedle Investments UK International Limited, TAM UK International Holdings Ltd and Ameriprise Asset Management Holdings Singapore (Pte.) Ltd and their respective subsidiaries (collectively, “Threadneedle”).

The accompanying Consolidated Financial Statements include the accounts of Ameriprise Financial, Inc., companies in which it directly or indirectly has a controlling financial interest and variable interest entities (“VIEs”) in which it is the primary beneficiary (collectively, the “Company”). All intercompany transactions and balances have been eliminated in consolidation.

The interim financial information in this report has not been audited. In the opinion of management, all adjustments necessary for fair statement of the consolidated results of operations and financial position for the interim periods have been made. All adjustments made were of a normal recurring nature.

In the first quarter of 2021, the Company recorded a favorable out-of-period correction of $29 million in other comprehensive income related to defined benefit plans.

The impact of the error was not material to the current and prior period financial statements.

The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Results of operations reported for interim periods are not necessarily indicative of results for the entire year. These Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on February 25, 2022 (“2021 10-K”).

The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through the date the financial statements were issued. No subsequent events or transactions requiring recognition or disclosure were identified.

2.  Recent Accounting Pronouncements

Future Adoption of New Accounting Standards

Financial Instruments – Credit Losses – Troubled Debt Restructurings and Vintage Disclosures

In March 2022, the Financial Accounting Standards Board (“FASB”) proposed amendments to Accounting Standard Update No. 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (“Topic 326”). The update removes the recognition and measurement guidance for Troubled Debt Restructurings (“TDRs”) by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, and modifies the disclosure requirements for certain loan refinancing and restructuring by creditors when a borrower is experiencing financial difficulty. Rather than applying the recognition and measurement for TDRs, an entity must apply the loan refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan. The update also requires entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The amendments are to be applied prospectively, but entities may apply a modified retrospective transition for changes to the recognition and measurement of TDRs. For entities that have adopted Topic 326, the amendments are effective for interim and annual periods beginning after December 15, 2022. Early adoption is permitted for entities that have adopted Topic 326, including adoption in an interim period. The adoption of the standard is not expected to have a material impact on the Company’s consolidated results of operations and financial condition.

Business Combinations – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

In October 2021, the FASB updated the accounting standards to require an entity (acquirer) to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue for Contracts with Customers (“Topic 606”). At the acquisition date, an acquirer is required to account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. Generally, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements (if the acquiree prepared financial statements in accordance with GAAP). The amendments apply to all contract assets and contract liabilities acquired in a business combination that result from contracts accounted for under the principals of Topic 606. The standard is effective for interim and annual periods beginning after December 15, 2022. Early adoption is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of the early application and (2) prospectively to all business combinations that occur on or after the date of initial application. The adoption of the standard is not expected to have a material impact on the Company’s consolidated results of operations and financial condition.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts

In August 2018, the FASB updated the accounting standard related to long-duration insurance contracts. The guidance revises key elements of the measurement models and disclosure requirements for long-duration insurance contracts issued by insurers and reinsurers.

The guidance establishes a significant new category of benefit features called market risk benefits that protect the contractholder from other-than-nominal capital market risk and expose the insurer to that risk. Insurers will have to measure market risk benefits at fair value. Market risk benefits include variable annuity guaranteed benefits (i.e. guaranteed minimum death, withdrawal, withdrawal for life, accumulation and income benefits). The portion of the change in fair value attributable to a change in the instrument-specific credit risk of market risk benefits in a liability position will be recorded in OCI.

Significant changes also relate to the measurement of the liability for future policy benefits for nonparticipating traditional long-duration insurance contracts and immediate annuities with a life contingent feature including the following:

•Insurers will be required to review and update the cash flow assumptions used to measure the liability for future policy benefits rather than using assumptions locked in at contract inception. The review of assumptions to measure the liability for all future policy benefits will be required annually at the same time each year, or more frequently if suggested by experience. The effect of updating assumptions will be measured on a retrospective catch-up basis and presented separate from the ongoing policyholder benefit expense in the statement of operations in the period the update is made. This new unlocking process will be required for the Company’s term and whole life insurance, disability income, long term care insurance and immediate annuities with a life contingent feature.

•The discount rate used to measure the liability for future policy benefits will be standardized. The current requirement to use a discount rate reflecting expected investment yields will change to an upper-medium grade (low credit risk) fixed income corporate instrument yield (generally interpreted as an “A” rating) reflecting the duration characteristics of the liability. Entities will be required to update the discount rate at each reporting date with the effect of discount rate changes reflected in OCI.

•The current premium deficiency test is being replaced with a net premium ratio cap of 100%. If the net premium ratio (i.e. the ratio of the present value of total expected benefits and related expenses to the present value of total expected premiums) exceeds 100%, insurers are required to recognize a loss in the statement of operations in the period. Contracts from different issue years will no longer be permitted to be grouped to determine contracts in a loss position.

In addition, the update requires deferred acquisition costs (“DAC”) and deferred sales inducement costs (“DSIC”) relating to all long-duration contracts and most investment contracts to be amortized on a straight-line basis over the expected life of the contract independent of profit emergence. Under the new guidance, interest will not accrue to the deferred balance and DAC and DSIC will not be subject to an impairment test.

The update requires significant additional disclosures, including disaggregated rollforwards of the liability for future policy benefits, policyholder account balances, market risk benefits, DAC and DSIC, as well as qualitative and quantitative information about expected cash flows, estimates and assumptions. The standard is effective for interim and annual periods beginning after December 15, 2022. The standard should be applied to the liability for future policy benefits and DAC and DSIC on a modified retrospective basis and applied to market risk benefits on a retrospective basis with the option to apply full retrospective transition if certain criteria are met. Early adoption is permitted. The Company is currently in the process of implementing the standard, including the implementation of controlled measurement and reporting processes. The Company expects the impact of adopting the standard to be material to its consolidated results of operations and financial condition.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

3. Revenue from Contracts with Customers

The following tables present revenue disaggregated by segment on an adjusted operating basis with a reconciliation of segment revenues to those reported on the Consolidated Statements of Operations:

	Three Months Ended March 31, 2022
	Advice & Wealth Management		Asset Management		Retirement & Protection Solutions		Corporate & Other		Total Segments		Non-operating <br>Revenue		Total
	(in millions)
Management and financial advice fees:
Asset management fees:
Retail	$	—	$	644	$	—	$	—	$	644	$	—	$	644
Institutional	—		195		—		—		195		—		195
Advisory fees	1,191		—		—		—		1,191		—		1,191
Financial planning fees	97		—		—		—		97		—		97
Transaction and other fees	92		55		16		—		163		—		163
Total management and financial advice fees	1,380		894		16		—		2,290		—		2,290
Distribution fees:
Mutual funds	204		65		—		—		269		—		269
Insurance and annuity	221		46		95		—		362		—		362
Other products	104		—		—		—		104		—		104
Total distribution fees	529		111		95		—		735		—		735
Other revenues	53		5		—		—		58		—		58
Total revenue from contracts with customers	1,962		1,010		111		—		3,083		—		3,083
Revenue from other sources (1)	82		7		661		116		866		63		929
Total segment gross revenues	2,044		1,017		772		116		3,949		63		4,012
Banking and deposit interest expense	(2)		—		—		—		(2)		—		(2)
Total segment net revenues	2,042		1,017		772		116		3,947		63		4,010
Elimination of intersegment revenues	(228)		(12)		(112)		—		(352)		(3)		(355)
Total net revenues	$	1,814	$	1,005	$	660	$	116	$	3,595	$	60	$	3,655

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

	Three Months Ended March 31, 2021
	Advice & Wealth Management		Asset Management		Retirement & Protection Solutions		Corporate & Other		Total Segments		Non-operating <br>Revenue		Total
	(in millions)
Management and financial advice fees:
Asset management fees:
Retail	$	—	$	531	$	—	$	—	$	531	$	—	$	531
Institutional	—		123		—		—		123		—		123
Advisory fees	1,028		—		—		—		1,028		—		1,028
Financial planning fees	88		—		—		—		88		—		88
Transaction and other fees	89		52		16		—		157		—		157
Total management and financial advice fees	1,205		706		16		—		1,927		—		1,927
Distribution fees:
Mutual funds	207		67		—		—		274		—		274
Insurance and annuity	240		47		99		—		386		—		386
Other products	112		—		—		—		112		—		112
Total distribution fees	559		114		99		—		772		—		772
Other revenues	49		1		—		—		50		—		50
Total revenue from contracts with customers	1,813		821		115		—		2,749		—		2,749
Revenue from other sources (1)	71		7		672		139		889		99		988
Total segment gross revenues	1,884		828		787		139		3,638		99		3,737
Banking and deposit interest expense	(5)		—		—		—		(5)		—		(5)
Total segment net revenues	1,879		828		787		139		3,633		99		3,732
Elimination of intersegment revenues	(250)		(13)		(116)		—		(379)		(3)		(382)
Total net revenues	$	1,629	$	815	$	671	$	139	$	3,254	$	96	$	3,350

(1) Revenues not included in the scope of the revenue from contracts with customers standard. The amounts primarily consist of revenue associated with insurance and annuity products or financial instruments.

The following discussion describes the nature, timing, and uncertainty of revenues and cash flows arising from the Company’s contracts with customers on a consolidated basis.

Management and Financial Advice Fees

Asset Management Fees

The Company earns revenue for performing asset management services for retail and institutional clients. The revenue is earned based on a fixed or tiered rate applied, as a percentage, to assets under management. Assets under management vary with market fluctuations and client behavior. The asset management performance obligation is considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. Asset management fees are accrued, invoiced and collected on a monthly or quarterly basis.

The Company’s asset management contracts for Open Ended Investment Companies (“OEICs”) in the United Kingdom (“U.K.”) and Société d'Investissement à Capital Variable (“SICAVs”) in Europe include performance obligations for asset management and fund distribution services. The amounts received for these services are reported as management and financial advice fees. The revenue recognition pattern is the same for both performance obligations as the fund distribution services revenue is variably constrained due to factors outside the Company’s control including market volatility and client behavior (such as how long clients hold their investment) and not recognized until assets under management are known.

The Company may also earn performance-based management fees on institutional accounts, hedge funds, collateralized loan obligations (“CLOs”), OEICs, SICAVs and property and other funds based on a percentage of account returns in excess of either a benchmark index or a contractually specified level. This revenue is variable and impacted primarily by the performance of the assets being managed compared to the benchmark index or contractually specified level. The revenue is not recognized until it is probable that a significant reversal will not occur. Performance-based management fees are invoiced on a quarterly or annual basis.

Advisory Fees

The Company earns revenue for performing investment advisory services for certain brokerage customer’s discretionary and non-discretionary managed accounts. The revenue is earned based on a contractual fixed rate applied, as a percentage, to the market value of assets held in the account. The investment advisory performance obligation is considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. Advisory fees are billed on a monthly basis on the prior month end assets.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Financial Planning Fees

The Company earns revenue for providing financial plans to its clients. The revenue earned for each financial plan is either a fixed fee (received monthly, quarterly or annually) or a variable fee (received monthly) based on a contractual fixed rate applied, as a percentage, to the prior month end assets held in a client’s investment advisory account. The financial planning fee is based on the complexity of a client’s financial and life situation and his or her advisor’s experience. The performance obligation is satisfied at the time the financial plan is delivered to the customer. The Company records a contract liability for the unearned revenue when cash is received before the plan is delivered. The financial plan contracts with clients are annual contracts. Amounts recorded as a contract liability are recognized as revenue when the financial plan is delivered, which occurs within the annual contract period.

For fixed fee arrangements, revenue is recognized when the financial plan is delivered. The Company accrues revenue for any amounts that have not been received at the time the financial plan is delivered.

For variable fee arrangements, revenue is recognized for cash that has been received when the financial plan is delivered. The amount received after the plan is delivered is variably constrained due to factors outside the Company’s control including market volatility and client behavior. The revenue is recognized when it is probable that a significant reversal will not occur that is generally each month end as the advisory account balance uncertainty is resolved.

Contract liabilities for financial planning fees, which are included in Other liabilities, were $155 million and $157 million as of March 31, 2022 and December 31, 2021, respectively.

The Company pays sales commissions to advisors when a new financial planning contract is obtained or when an existing contract is renewed. The sales commissions paid to the advisors prior to financial plan delivery are considered costs to obtain a contract with a customer and are initially capitalized. When the performance obligation to deliver the financial plan is satisfied, the commission is recognized as distribution expense. Capitalized costs to obtain these contracts are reported in Other assets and were $123 million and $126 million as of March 31, 2022 and December 31, 2021, respectively.

Transaction and Other Fees

The Company earns revenue for providing customer support, shareholder and administrative services (including transfer agent services) for affiliated mutual funds and networking, sub-accounting and administrative services for unaffiliated mutual funds. The Company also receives revenue for providing custodial services and account maintenance services on brokerage and retirement accounts that are not included in an advisory relationship. Transfer agent and administrative revenue is earned based on either a fixed rate applied, as a percentage, to assets under management or an annual fixed fee for each fund position. Networking and sub-accounting revenue is earned based on either an annual fixed fee for each account or an annual fixed fee for each fund position. Custodial and account maintenance revenue is generally earned based on a quarterly or annual fixed fee for each account. Each of the customer support and administrative services performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. Transaction and other fees (other than custodial service fees) are invoiced or charged to brokerage accounts on a monthly or quarterly basis. Custodial service fees are invoiced or charged to brokerage accounts on an annual basis. Contract liabilities for custodial service fees, which are included in Other liabilities, were $39 million and nil as of March 31, 2022 and December 31, 2021, respectively.

The Company earns revenue for providing trade execution services to franchise advisors. The trade execution performance obligation is satisfied at the time of each trade and the revenue is primarily earned based on a fixed fee per trade. These fees are invoiced and collected on a semi-monthly basis.

Distribution Fees

Mutual Funds and Insurance and Annuity Products

The Company earns revenue for selling affiliated and unaffiliated mutual funds, fixed and variable annuities and insurance products. The performance obligation is satisfied at the time of each individual sale. A portion of the revenue is based on a fixed rate applied, as a percentage, to amounts invested at the time of sale. The remaining revenue is recognized over the time the client owns the investment or holds the contract and is generally earned based on a fixed rate applied, as a percentage, to the net asset value of the fund, or the value of the insurance policy or annuity contract. The ongoing revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control including market volatility and client behavior (such as how long clients hold their investment, insurance policy or annuity contract). This ongoing revenue may be recognized for many years after the initial sale. The revenue will not be recognized until it is probable that a significant reversal will not occur.

The Company earns revenue for providing unaffiliated partners an opportunity to educate the Company’s advisors or to support availability and distribution of their products on the Company’s platforms. These payments allow the outside parties to train and support the advisors, explain the features of their products and distribute marketing and educational materials, and support trading and operational systems necessary to enable the Company’s client servicing and production distribution efforts. The Company earns revenue for placing and maintaining unaffiliated fund partners and insurance companies’ products on the Company’s sales platform (subject to the Company’s due diligence standards). The revenue is primarily earned based on a fixed fee or a fixed rate applied, as a

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

percentage, to the market value of assets invested. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are invoiced and collected on monthly basis.

Other Products

The Company earns revenue for selling unaffiliated alternative products. The performance obligation is satisfied at the time of each individual sale. A portion of the revenue is based on a fixed rate applied, as a percentage, to amounts invested at the time of sale. The remaining revenue is recognized over the time the client owns the investment and is earned generally based on a fixed rate applied, as a percentage, to the market value of the investment. The ongoing revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control including market volatility and client behavior (such as how long clients hold their investment). The revenue will not be recognized until it is probable that a significant reversal will not occur.

The Company earns revenue from brokerage clients for the execution of requested trades. The performance obligation is satisfied at the time of trade execution and amounts are received on the settlement date. The revenue varies for each trade based on various factors that include the type of investment, dollar amount of the trade and how the trade is executed (online or broker assisted).

The Company earns revenue for placing clients’ deposits in its brokerage sweep program with third-party banks. The amount received from the third-party banks is impacted by short-term interest rates. The performance obligation with the financial institutions that participate in the sweep program is considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. The revenue is earned daily and settled monthly based on a rate applied, as a percentage, to the deposits placed.

Other Revenues

The Company earns revenue from fees charged to franchise advisors for providing various services the advisors need to manage and grow their practices. The primary services include: licensing of intellectual property and software, compliance supervision, insurance coverage, technology services and support, consulting and other services. The services are either provided by the Company or third- party providers. The Company controls the services provided by third parties as it has the right to direct the third parties to perform the services, is primarily responsible for performing the services and sets the prices the advisors are charged. The Company recognizes revenue for the gross amount of the fees received from the advisors. The fees are primarily collected monthly as a reduction of commission payments.

Intellectual property and software licenses, along with compliance supervision, insurance coverage, and technology services and support are primarily earned based on a monthly fixed fee. These services are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. The consulting and other services performance obligations are satisfied as the services are delivered and revenue is earned based upon the level of service requested.

Contract Costs Asset

The Company has an asset of $39 million as of both March 31, 2022 and December 31, 2021 related to the transition of investment advisory services under an arrangement with BMO Financial Group for clients that elected to transfer U.S. retail and institutional assets to the Company.

Receivables

Receivables for revenue from contracts with customers are recognized when the performance obligation is satisfied and the Company has an unconditional right to the revenue. Receivables related to revenues from contracts with customers were $609 million and $668 million as of March 31, 2022 and December 31, 2021, respectively.

4.  Variable Interest Entities

The Company provides asset management services to investment entities which are considered to be VIEs, such as CLOs, hedge funds and other private funds, property funds and certain non-U.S. series funds (such as OEICs and SICAVs) (collectively, “investment entities”), which are sponsored by the Company. In addition, the Company invests in structured investments other than CLOs and certain affordable housing partnerships which are considered VIEs. The Company consolidates certain investment entities (collectively, “consolidated investment entities”) if the Company is deemed to be the primary beneficiary. The Company has no obligation to provide financial or other support to the non-consolidated VIEs beyond its initial investment and existing future funding commitments, and the Company has not provided any other support to these entities. The Company has unfunded commitments related to consolidated CLOs of $28 million and $27 million as of March 31, 2022 and December 31, 2021, respectively.

CLOs

CLOs are asset backed financing entities collateralized by a pool of assets, primarily syndicated loans and, to a lesser extent, high-yield bonds. Multiple tranches of debt securities are issued by a CLO, offering investors various maturity and credit risk characteristics. The debt securities issued by the CLOs are non-recourse to the Company. The CLO’s debt holders have recourse only to the assets of the CLO. The assets of the CLOs cannot be used by the Company. Scheduled debt payments are based on the performance of the CLO’s collateral pool. The Company earns management fees from the CLOs based on the value of the CLO’s collateral pool and, in certain instances, may also receive incentive fees. The fee arrangement is at market and commensurate with the

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

level of effort required to provide those services. The Company has invested in a portion of the unrated, junior subordinated notes and highly rated senior notes of certain CLOs. The Company consolidates certain CLOs where it is the primary beneficiary and has the power to direct the activities that most significantly impact the economic performance of the CLO.

The Company’s maximum exposure to loss with respect to non-consolidated CLOs is limited to its amortized cost, which was $1 million as of both March 31, 2022 and December 31, 2021, respectively. The Company classifies these investments as Available-for-Sale securities. See Note 5 for additional information on these investments.

Property Funds

The Company provides investment advice and related services to property funds, some of which are considered VIEs. For investment management services, the Company generally earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services. The Company does not have a significant economic interest and is not required to consolidate any of the property funds. The Company’s maximum exposure to loss with respect to its investment in these entities is limited to its carrying value. The carrying value of the Company’s investment in property funds is reflected in other investments and was $44 million as of both March 31, 2022 and December 31, 2021, respectively.

Hedge Funds and other Private Funds

The Company does not consolidate hedge funds and other private funds which are sponsored by the Company and considered VIEs. For investment management services, the Company earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services and the Company does not have a significant economic interest in any fund. The Company’s maximum exposure to loss with respect to its investment in these entities is limited to its carrying value. The carrying value of the Company’s investment in these entities is reflected in other investments and was nil as of both March 31, 2022 and December 31, 2021.

Non-U.S. Series Funds

The Company manages non-U.S. series funds, which are considered VIEs. For investment management services, the Company earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services. The Company does not consolidate these funds and its maximum exposure to loss is limited to its carrying value. The carrying value of the Company’s investment in these funds is reflected in other investments and was $42 million and $43 million as of March 31, 2022 and December 31, 2021, respectively.

Affordable Housing Partnerships and Other Real Estate Partnerships

The Company is a limited partner in affordable housing partnerships that qualify for government-sponsored low income housing tax credit programs and partnerships that invest in multi-family residential properties that were originally developed with an affordable housing component. The Company has determined it is not the primary beneficiary and therefore does not consolidate these partnerships.

A majority of the limited partnerships are VIEs. The Company’s maximum exposure to loss as a result of its investment in the VIEs is limited to the carrying value. The carrying value is reflected in other investments and was $124 million and $138 million as of March 31, 2022 and December 31, 2021, respectively. The Company had a $8 million liability recorded as of both March 31, 2022 and December 31, 2021, respectively, related to original purchase commitments not yet remitted to the VIEs. The Company has not provided any additional support and is not contractually obligated to provide additional support to the VIEs beyond the funding commitments.

Structured Investments

The Company invests in structured investments which are considered VIEs for which it is not the sponsor. These structured investments typically invest in fixed income instruments and are managed by third parties and include asset backed securities, and commercial and residential mortgage backed securities. The Company classifies these investments as Available-for-Sale securities. The Company has determined that it is not the primary beneficiary of these structures due to the size of the Company’s investment in the entities and position in the capital structure of these entities. The Company’s maximum exposure to loss as a result of its investment in these structured investments is limited to its amortized cost. See Note 5 for additional information on these structured investments.

Fair Value of Assets and Liabilities

The Company categorizes its fair value measurements according to a three-level hierarchy. See Note 11 for the definition of the three levels of the fair value hierarchy.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis:

		March 31, 2022
	Level 1			Level 2			Level 3			Total
	(in millions)
Assets
Investments:
Common stocks		$	—		$	3		$	—		$	3
Syndicated loans		—			2,077			97			2,174
Total investments		—			2,080			97			2,177
Receivables		—			22			—			22
Other assets		—			2			—			2
Total assets at fair value		$	—		$	2,104		$	97		$	2,201
Liabilities
Debt (1)		$	—		$	2,156		$	—		$	2,156
Other liabilities		—			146			—			146
Total liabilities at fair value		$	—		$	2,302		$	—		$	2,302				December 31, 2021
---	---	---	---	---	---	---	---	---	---	---	---	---
	Level 1			Level 2			Level 3			Total
	(in millions)
Assets
Investments:
Common stocks		$	—		$	3		$	—		$	3
Syndicated loans		—			2,117			64			2,181
Total investments		—			2,120			64			2,184
Receivables		—			17			—			17
Other assets		—			—			3			3
Total assets at fair value		$	—		$	2,137		$	67		$	2,204
Liabilities
Debt (1)		$	—		$	2,164		$	—		$	2,164
Other liabilities		—			137			—			137
Total liabilities at fair value		$	—		$	2,301		$	—		$	2,301

(1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.1 billion and $2.2 billion as of March 31, 2022 and December 31, 2021, respectively.

The following tables provide a summary of changes in Level 3 assets held by consolidated investment entities measured at fair value on a recurring basis:

		Syndicated Loans			Other Assets
	(in millions)
Balance, January 1, 2022		$	64		$	3
Total gains (losses) included in:
Net income		(1)		(1)	—
Purchases		15			—
Sales		(1)			—
Transfers into Level 3		62			—
Transfers out of Level 3		(42)			(3)
Balance, March 31, 2022		$	97		$	—
Changes in unrealized gains (losses) included in income relating to assets held at March 31, 2022		$	(1)	(1)	$	—

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

		Syndicated Loans			Other Assets
	(in millions)
Balance, January 1, 2021		$	92		$	2
Total gains (losses) included in:
Net income		2		(1)	—
Purchases		59			—
Sales		(10)			—
Settlements		(20)			—
Transfers into Level 3		57			—
Transfers out of Level 3		(25)			(2)
Balance, March 31, 2021		$	155		$	—
Changes in unrealized gains (losses) included in income relating to assets held at March 31, 2021		$	1	(1)	$	—

(1) Included in Net investment income.

Securities and loans transferred from Level 3 primarily represent assets with fair values that are now obtained from a third-party pricing service with observable inputs or priced in active markets. Securities and loans transferred to Level 3 represent assets with fair values that are now based on a single non-binding broker quote.

All Level 3 measurements as of March 31, 2022 and December 31, 2021 were obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company.

Determination of Fair Value

Assets

Investments

The fair value of syndicated loans obtained from third-party pricing services using a market approach with observable inputs is classified as Level 2. The fair value of syndicated loans obtained from third-party pricing services with a single non-binding broker quote as the underlying valuation source is classified as Level 3. The underlying inputs used in non-binding broker quotes are not readily available to the Company. See Note 11 for a description of the Company’s determination of the fair value of corporate debt securities, common stocks and other investments.

Receivables

For receivables of the consolidated CLOs, the carrying value approximates fair value as the nature of these assets has historically been short term and the receivables have been collectible. The fair value of these receivables is classified as Level 2.

Liabilities

Debt

The fair value of the CLOs’ assets, typically syndicated bank loans, is more observable than the fair value of the CLOs’ debt tranches for which market activity is limited and less transparent. As a result, the fair value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets and is classified as Level 2.

Other Liabilities

Other liabilities consist primarily of securities purchased but not yet settled held by consolidated CLOs. The carrying value approximates fair value as the nature of these liabilities has historically been short term. The fair value of these liabilities is classified as Level 2. Other liabilities also include accrued interest on CLO debt.

Fair Value Option

The Company has elected the fair value option for the financial assets and liabilities of the consolidated CLOs. Management believes that the use of the fair value option better matches the changes in fair value of assets and liabilities related to the CLOs.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected:

		March 31, 2022		December 31, 2021
	(in millions)
Syndicated loans
Unpaid principal balance		$	2,242	$	2,233
Excess unpaid principal over fair value		(68)		(52)
Fair value		$	2,174	$	2,181
Fair value of loans more than 90 days past due		$	—	$	—
Fair value of loans in nonaccrual status		11		13
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both		5		10
Debt
Unpaid principal balance		$	2,295	$	2,296
Excess unpaid principal over fair value		(139)		(132)
Carrying value (1)		$	2,156	$	2,164

(1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.1 billion and $2.2 billion as of March 31, 2022 and December 31, 2021, respectively.

Interest income from syndicated loans, bonds and structured investments is recorded based on contractual rates in Net investment income. Gains and losses related to changes in the fair value of investments and gains and losses on sales of investments are also recorded in Net investment income. Interest expense on debt is recorded in interest and debt expense with gains and losses related to changes in the fair value of debt recorded in Net investment income.

Total net gains (losses) recognized in Net investment income related to the changes in fair value of investments the Company owns in the consolidated CLOs where it has elected the fair value option and collateralized financing entity accounting were immaterial for both the three months ended March 31, 2022 and 2021.

Debt of the consolidated investment entities and the stated interest rates were as follows:

		Carrying Value					Weighted Average Interest Rate
	March 31, 2022			December 31, 2021		March 31, 2022		December 31, 2021
	(in millions)
Debt of consolidated CLOs due 2028-2034		$	2,156		$	2,164	1.9	%	1.7	%

The debt of the consolidated CLOs has both fixed and floating interest rates, which range from nil to 9.5%. The interest rates on the debt of CLOs are weighted average rates based on the outstanding principal and contractual interest rates.

5.  Investments

The following is a summary of Ameriprise Financial investments:

	March 31, 2022		December 31, 2021
Available-for-Sale securities, at fair value	$	32,330	$	32,050
Mortgage loans (allowance for credit losses: 2022, 12; 2021, 12)	1,971		1,953
Policy loans	833		835
Other investments (allowance for credit losses: 2022, 5; 2021, 5)	906		972
Total	$	36,040	$	35,810

All values are in US Dollars.

Other investments primarily reflect the Company’s interests in affordable housing partnerships, trading securities, equity securities, seed money investments, syndicated loans, credit card receivables and certificates of deposit with original or remaining maturities at the time of purchase of more than 90 days.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following is a summary of Net investment income:

	Three Months Ended March 31,
		2022		2021
		(in millions)
Investment income on fixed maturities		$	214	$	266
Net realized gains (losses)		20		69
Affordable housing partnerships		(15)		(15)
Other		23		21
Consolidated investment entities		19		36
Total		$	261	$	377

Available-for-Sale securities distributed by type were as follows:

	March 31, 2022
Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
	(in millions)
Corporate debt securities	$	9,012	$	667	$	(297)	$	—	$	9,382
Residential mortgage backed securities	12,117		17		(439)		—		11,695
Commercial mortgage backed securities	5,461		3		(168)		—		5,296
Asset backed securities	3,676		16		(54)		—		3,638
State and municipal obligations	847		163		(8)		(1)		1,001
U.S. government and agency obligations	1,160		—		—		—		1,160
Foreign government bonds and obligations	83		2		(3)		—		82
Other securities	77		—		(1)		—		76
Total	$	32,433	$	868	$	(970)	$	(1)	$	32,330		Description of Securities		December 31, 2021
---	---	---	---	---	---	---	---	---	---	---	---
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
		(in millions)
Corporate debt securities		$	8,737	$	1,243	$	(48)	$	—	$	9,932
Residential mortgage backed securities		10,927		67		(50)		—		10,944
Commercial mortgage backed securities		4,950		59		(23)		—		4,986
Asset backed securities		3,639		26		(11)		—		3,654
State and municipal obligations		850		244		(1)		(1)		1,092
U.S. government and agency obligations		1,301		—		—		—		1,301
Foreign government bonds and obligations		88		5		(1)		—		92
Other securities		49		—		—		—		49
Total		$	30,541	$	1,644	$	(134)	$	(1)	$	32,050

As of March 31, 2022 and December 31, 2021, accrued interest of $156 million and $140 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in Receivables.

As of March 31, 2022 and December 31, 2021, investment securities with a fair value of $3.3 billion and $3.1 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $428 million and $314 million, respectively, may be sold, pledged or rehypothecated by the counterparty.

As of March 31, 2022 and December 31, 2021, fixed maturity securities comprised approximately 90% and 89%, respectively, of Ameriprise Financial investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations (“NRSROs”), including Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings Ltd. (“Fitch”). The Company uses the median of available ratings from Moody’s, S&P and Fitch, or if fewer than three ratings are available, the lower rating is used. When ratings from Moody’s, S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally. As of March 31, 2022 and December 31, 2021, the Company’s internal analysts rated $471 million and $400 million, respectively, of securities using criteria similar to those used by NRSROs.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

A summary of fixed maturity securities by rating was as follows:

Ratings		March 31, 2022								December 31, 2021
	Amortized Cost		Fair Value		Percent of Total Fair Value	Amortized Cost			Fair Value			Percent of Total Fair Value
		(in millions, except percentages)
AAA		$	22,172	$	21,546		67	%		$	20,563		$	20,625	64	%
AA		748		858			3			727			898		3
A		1,786		1,991			6			1,775			2,129		7
BBB		6,941		7,135			22			6,495			7,268		23
Below investment grade (1)		786		800			2			981			1,130		3
Total fixed maturities		$	32,433	$	32,330		100	%		$	30,541		$	32,050	100	%

(1) The amortized cost and fair value of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $1 million and $2 million, respectively, as of both March 31, 2022 and December 31, 2021. These securities are not rated but are included in below investment grade due to their risk characteristics.

As of both March 31, 2022 and December 31, 2021, approximately 30% of securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any issuer were greater than 10% of the Company’s total shareholder’s equity as of both March 31, 2022 and December 31, 2021.

The following tables summarize the fair value and gross unrealized losses on Available-for-Sale securities, aggregated by major investment type and the length of time that individual securities have been in a continuous unrealized loss position for which no allowance for credit losses has been recorded:

Description of Securities		March 31, 2022
	Less than 12 Months									12 Months or More									Total
	Number of Securities		Fair Value			Unrealized Losses			Number of Securities			Fair Value			Unrealized Losses	Number of Securities				Fair Value	Unrealized Losses
		(in millions, except number of securities)
Corporate debt securities		253		$	3,182		$	(234)			40		$	441			$	(63)		293	$	3,623	$	(297)
Residential mortgage backed securities		444		9,348			(410)				70		544				(29)			514	9,892		(439)
Commercial mortgage backed securities		248		4,322			(153)				20		277				(15)			268	4,599		(168)
Asset backed securities		88		3,003			(52)				6		113				(2)			94	3,116		(54)
State and municipal obligations		55		126			(8)				1		4				—			56	130		(8)
Foreign government bonds and obligations		7		28			(1)				9		8				(2)			16	36		(3)
Other securities		4		76			(1)				—		—				—			4	76		(1)
Total		1,099		$	20,085		$	(859)			146		$	1,387			$	(111)		1,245	$	21,472	$	(970)

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Description of Securities		December 31, 2021
	Less than 12 Months							12 Months or More								Total
	Number of Securities		Fair Value		Unrealized Losses	Number of Securities			Fair Value		Unrealized Losses			Number of Securities			Fair Value		Unrealized Losses
		(in millions, except number of securities)
Corporate debt securities		110		$	2,056		$	(43)		14		$	81		$	(5)		124		$	2,137	$	(48)
Residential mortgage backed securities		206		5,808			(48)			56		191			(2)			262		5,999		(50)
Commercial mortgage backed securities		102		2,184			(22)			9		139			(1)			111		2,323		(23)
Asset backed securities		41		1,883			(11)			6		118			—			47		2,001		(11)
State and municipal obligations		26		64			(1)			—		—			—			26		64		(1)
Foreign government bonds and obligations		5		6			—			6		4			(1)			11		10		(1)
Total		490		$	12,001		$	(125)		91		$	533		$	(9)		581		$	12,534	$	(134)

As part of the Company’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities for which an allowance for credit losses has not been recognized during the three months ended March 31, 2022 is primarily attributable to the impact of higher interest rates and wider credit spreads. The Company did not recognize these unrealized losses in earnings because it was determined that such losses were due to non-credit factors. The Company does not intend to sell these securities and does not believe that it is more likely than not that the Company will be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. As of March 31, 2022 and December 31, 2021, approximately 94% and 96%, respectively, of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade.

The following tables present a rollforward of the allowance for credit losses on Available-for-Sale securities:

		Corporate Debt Securities		Asset Backed Securities		State and Municipal Obligations		Total
	(in millions)
Balance at January 1, 2022		$	—	$	—	$	1	$	1
Charge-offs		—		—		—		—
Balance at March 31, 2022		$	—	$	—	$	1	$	1
Balance at January 1, 2021		$	10	$	1	$	—	$	11
Charge-offs		(10)		(1)		—		(11)
Balance at March 31, 2021		$	—	$	—	$	—	$	—

Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in Net investment income were as follows:

	Three Months Ended March 31,
		2022			2021
			(in millions)
Gross realized investment gains				$	20	$	51
Gross realized investment losses				—		(1)
Total				$	20	$	50

There were no credit losses for the three months ended March 31, 2022 and 2021.

See Note 14 for a rollforward of net unrealized investment gains (losses) included in accumulated other comprehensive income (“AOCI”).

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Available-for-Sale securities by contractual maturity as of March 31, 2022 were as follows:

	Amortized Cost		Fair Value
	(in millions)
Due within one year	$	1,847	$	1,849
Due after one year through five years	2,120		2,133
Due after five years through 10 years	3,563		3,382
Due after 10 years	3,649		4,337
	11,179		11,701
Residential mortgage backed securities	12,117		11,695
Commercial mortgage backed securities	5,461		5,296
Asset backed securities	3,676		3,638
Total	$	32,433	$	32,330

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities were not included in the maturities distribution.

6.  Financing Receivables

Financing receivables are comprised of commercial loans, consumer loans, and deposit receivables.

Allowance for Credit Losses

The following tables present a rollforward of the allowance for credit losses:

		Commercial Loans		Consumer Loans		Total
	(in millions)
Balance, January 1, 2022		$	47	$	3	$	50
Provisions		(2)		—		(2)
Balance, March 31, 2022		$	45	$	3	$	48				Commercial Loans		Consumer Loans		Total
---	---	---	---	---	---	---	---
	(in millions)
Balance, January 1, 2021		$	66	$	2	$	68
Provisions		—		1		1
Charge-offs		(1)		—		(1)
Balance, March 31, 2021		$	65	$	3	$	68

Accrued interest on commercial loans was $12 million and $13 million as of March 31, 2022 and December 31, 2021, respectively, and is recorded in Receivables and excluded from the amortized cost basis of commercial loans.

Purchases and Sales

During the three months ended March 31, 2022 and 2021, the Company purchased nil and $13 million, respectively, of syndicated loans, and sold nil and $4 million, respectively, of syndicated loans.

During the three months ended March 31, 2022 and 2021, the Company purchased $1 million and $2 million, respectively, of residential mortgage loans. The allowance for credit losses for residential mortgage loans was not material as of both March 31, 2022 and 2021.

The Company has not acquired any loans with deteriorated credit quality as of the acquisition date.

Credit Quality Information

Nonperforming loans were $8 million and $9 million as of March 31, 2022 and December 31, 2021, respectively. All other loans were considered to be performing.

Commercial Loans

Commercial Mortgage Loans

The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Loan-to-value ratio is the primary credit quality indicator included in this review.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates when credit risk changes. Commercial mortgage loans which management has assigned its highest risk rating were less than 1% of total commercial mortgage loans as of both March 31, 2022 and December 31, 2021. Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. Total commercial mortgage loans past due were nil as of March 31, 2022 and December 31, 2021, respectively.

The tables below present the amortized cost basis of commercial mortgage loans by the year of origination and loan-to-value ratio :

		March 31, 2022
Loan-to-Value Ratio		2022		2021		2020		2019		2018		Prior		Total
	(in millions)
> 100%		$	—	$	—	$	—	$	11	$	10	$	15	$	36
80% - 100%		—		9		—		26		2		39		76
60% - 80%		21		99		66		48		22		164		420
40% - 60%		17		81		30		87		63		478		756
< 40%		4		14		26		2		71		529		646
Total		$	42	$	203	$	122	$	174	$	168	$	1,225	$	1,934
		December 31, 2021
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Loan-to-Value Ratio		2021		2020		2019		2018		2017		Prior		Total
	(in millions)
> 100%		$	—	$	—	$	20	$	10	$	—	$	29	$	59
80% - 100%		9		2		9		2		—		29		51
60% - 80%		142		80		60		23		61		138		504
40% - 60%		42		33		86		74		57		401		693
< 40%		11		8		48		6		58		478		609
Total		$	204	$	123	$	223	$	115	$	176	$	1,075	$	1,916

Loan-to-value ratio is based on income and expense data provided by borrowers at least annually and long-term capitalization rate assumptions based on property type.

In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:

		Loans					Percentage
	March 31, 2022			December 31, 2021		March 31, 2022		December 31, 2021
	(in millions)
East North Central		$	205		$	194	11	%	10	%
East South Central		56			57		3		3
Middle Atlantic		121			122		6		6
Mountain		118			119		6		6
New England		27			28		1		2
Pacific		637			627		33		33
South Atlantic		503			497		26		26
West North Central		139			141		7		7
West South Central		128			131		7		7
		1,934			1,916		100	%	100	%
Less: allowance for credit losses		12			12
Total		$	1,922		$	1,904

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Concentrations of credit risk of commercial mortgage loans by property type were as follows:

		Loans					Percentage
	March 31, 2022			December 31, 2021		March 31, 2022		December 31, 2021
	(in millions)
Apartments		$	512		$	496	26	%	26	%
Hotel		15			14		1		1
Industrial		321			319		17		17
Mixed use		67			68		3		3
Office		266			271		14		14
Retail		617			617		32		32
Other		136			131		7		7
		1,934			1,916		100	%	100	%
Less: allowance for credit losses		12			12
Total		$	1,922		$	1,904

Syndicated Loans

The recorded investment in syndicated loans as of March 31, 2022 and December 31, 2021 was $146 million and $149 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. Total syndicated loans past due were nil as of March 31, 2022 and December 31, 2021. The Company assigns an internal risk rating to each syndicated loan in its portfolio ranging from 1 through 5, with 5 reflecting the lowest quality.

The tables below present the amortized cost basis of syndicated loans by origination year and internal risk rating:

		March 31, 2022
Internal Risk Rating		2022		2021		2020		2019		2018		Prior		Total
	(in millions)
Risk 5		$	1	$	—	$	—	$	—	$	—	$	—	$	1
Risk 4		—		—		—		—		—		3		3
Risk 3		—		4		—		9		5		12		30
Risk 2		—		15		6		7		7		32		67
Risk 1		—		5		1		3		12		24		45
Total		$	1	$	24	$	7	$	19	$	24	$	71	$	146				December 31, 2021
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Internal Risk Rating		2021		2020		2019		2018		2017		Prior		Total
	(in millions)
Risk 5		$	—	$	—	$	1	$	—	$	—	$	—	$	1
Risk 4		—		—		—		—		1		2		3
Risk 3		—		—		4		5		5		6		20
Risk 2		15		4		12		10		18		12		71
Risk 1		8		3		3		11		16		13		54
Total		$	23	$	7	$	20	$	26	$	40	$	33	$	149

Financial Advisor Loans

The Company offers loans to financial advisors for transitional cost assistance. Repayment of the loan is highly dependent on the retention of the financial advisor. In the event a financial advisor is no longer affiliated with the Company, any unpaid balances become immediately due. Accordingly, the primary risk factor for advisor loans is termination status. The allowance for credit losses related to loans to advisors that have terminated their relationship with the Company was $5 million as of both March 31, 2022 and December 31, 2021.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The tables below present the amortized cost basis of advisor loans by origination year and termination status:

		March 31, 2022
Termination Status		2022		2021		2020		2019		2018		Prior		Total
	(in millions)
Active		$	40	$	131	$	142	$	114	$	86	$	212	$	725
Terminated		—		—		1		1		—		6		8
Total		$	40	$	131	$	143	$	115	$	86	$	218	$	733				December 31, 2021
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Termination Status		2021		2020		2019		2018		2017		Prior		Total
	(in millions)
Active		$	136	$	147	$	119	$	89	$	116	$	113	$	720
Terminated		1		1		—		—		—		6		8
Total		$	137	$	148	$	119	$	89	$	116	$	119	$	728

Consumer Loans

Credit Card Receivables

The credit cards are co-branded with Ameriprise Financial, Inc. and issued to the Company’s customers by a third party. FICO scores and delinquency rates are the primary credit quality indicators for the credit card portfolio. Delinquency rates are measured based on the number of days past due. Credit card receivables over 30 days past due were 1% of total credit card receivables as of both March 31, 2022 and December 31, 2021.

The table below presents the amortized cost basis of credit card receivables by FICO score:

		March 31, 2022		December 31, 2021
	(in millions)
> 800		$	28	$	30
750 - 799		23		24
700 - 749		23		25
650 - 699		14		14
< 650		5		5
Total		$	93	$	98

Policy Loans

Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses.

Margin Loans

The margin loans balance was $1.2 billion as of both March 31, 2022 and December 31, 2021. The Company monitors collateral supporting margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. As of both March 31, 2022 and December 31, 2021, the allowance for credit losses on margin loans was not material.

Pledged Asset Lines of Credit

The pledged asset lines of credit balance was $520 million and $467 million as of March 31, 2022 and December 31, 2021, respectively. The Company monitors collateral supporting pledged asset lines of credit and requests additional collateral when necessary in order to mitigate the risk of loss. As of March 31, 2022 and December 31, 2021, there was no allowance for credit losses on pledged asset lines of credit.

Deposit Receivables

Deposit receivables were $7.8 billion and $7.9 billion as of March 31, 2022 and December 31, 2021, respectively. Deposit receivables are fully collateralized by the fair value of the assets held in trusts. Based on management’s evaluation of the nature of the underlying assets and the potential for changes in the collateral value, there was no allowance for credit losses for the deposit receivables as of March 31, 2022 and December 31, 2021.

Troubled Debt Restructurings

There were no loans accounted for as a troubled debt restructuring by the Company during the three months ended March 31, 2022 and 2021. There are no commitments to lend additional funds to borrowers whose loans have been restructured.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

7.  Deferred Acquisition Costs and Deferred Sales Inducement Costs

The balances of and changes in DAC were as follows:

		2022		2021
	(in millions)
Balance at January 1		$	2,782	$	2,532
Capitalization of acquisition costs		53		65
Amortization		(96)		(5)
Impact of change in net unrealized (gains) losses on securities		189		93
Balance at March 31		$	2,928	$	2,685

The balances of and changes in DSIC, which is included in Other assets, were as follows:

		2022		2021
	(in millions)
Balance at January 1		$	189	$	189
Amortization		(8)		(3)
Impact of change in net unrealized (gains) losses on securities		6		4
Balance at March 31		$	187	$	190

8.  Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities

Policyholder account balances, future policy benefits and claims consisted of the following:

		March 31, 2022		December 31, 2021
	(in millions)
Policyholder account balances
Fixed annuities (1)		$	8,002	$	8,117
Variable annuity fixed sub-accounts		4,951		4,990
Universal life (“UL”)/variable universal life (“VUL”) insurance		3,092		3,103
Indexed universal life (“IUL”) insurance		2,587		2,534
Structured variable annuities		4,885		4,440
Other life insurance		553		563
Total policyholder account balances		24,070		23,747
Future policy benefits
Variable annuity guaranteed minimum withdrawal benefits (“GMWB”)		1,750		2,336
Variable annuity guaranteed minimum accumulation benefits (“GMAB”) (2)		(17)		(23)
Other annuity liabilities		96		67
Fixed annuity life contingent liabilities		1,254		1,278
Life and disability income insurance		1,125		1,139
Long term care insurance		5,485		5,664
UL/VUL and other life insurance additional liabilities		1,203		1,291
Total future policy benefits		10,896		11,752
Policy claims and other policyholders’ funds		259		251
Total policyholder account balances, future policy benefits and claims		$	35,225	$	35,750

(1) Includes fixed deferred annuities, non-life contingent fixed payout annuities and fixed deferred indexed annuity host contracts.

(2) Includes the fair value of GMAB embedded derivatives that was a net asset as of both March 31, 2022 and December 31, 2021 reported as a contra liability.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Separate account liabilities consisted of the following:

		March 31, 2022		December 31, 2021
	(in millions)
Variable annuity		$	75,921	$	82,862
VUL insurance		8,719		9,343
Other insurance		31		33
Threadneedle investment liabilities		4,998		5,253
Total		$	89,669	$	97,491

9.  Variable Annuity and Insurance Guarantees

Most of the variable annuity contracts issued by the Company contain one or more guaranteed minimum death benefit (“GMDB”) provisions or death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up (“GGU”) benefits. The Company discontinued new sales of substantially all GMWB and GMAB at the end of 2021. The Company also previously offered contracts containing guaranteed minimum income benefit (“GMIB”) provisions.

Certain UL policies provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges.

The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities:

Variable Annuity<br><br>Guarantees<br><br>by Benefit Type (1)		March 31, 2022									December 31, 2021
	Total Contract Value		Contract Value in Separate Accounts		Net Amount <br>at Risk		Weighted Average <br>Attained Age	Total Contract Value		Contract Value in Separate Accounts			Net Amount <br>at Risk			Weighted Average <br>Attained Age
		(in millions, except age)
GMDB:
Return of premium		$	64,309	$	62,458	$	122		69		$	70,020		$	68,145		$	6	69
Five/six-year reset		7,814		5,125		40			69		8,309			5,612			6		68
One-year ratchet		5,689		5,375		222			72		6,177			5,858			13		71
Five-year ratchet		1,318		1,266		13			68		1,438			1,386			1		68
Other		1,190		1,175		99			74		1,302			1,286			38		74
Total — GMDB		$	80,320	$	75,399	$	496		69		$	87,246		$	82,287		$	64	69
GGU death benefit		$	1,173	$	1,112	$	164		72		$	1,260		$	1,198		$	184	72
GMIB		$	166	$	153	$	5		72		$	184		$	170		$	4	71
GMWB:
GMWB		$	1,724	$	1,719	$	2		75		$	1,900		$	1,895		$	1	75
GMWB for life		47,847		47,815		575			69		52,387			52,334			187		69
Total — GMWB		$	49,571	$	49,534	$	577		69		$	54,287		$	54,229		$	188	69
GMAB		$	1,771	$	1,771	$	3		62		$	2,005		$	2,005		$	—	62

(1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table.

The net amount at risk for GMDB, GGU and GMAB is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB is defined as the greater of the present value of the minimum guaranteed annuity payments less the current contract value or zero. The net amount at risk for GMWB is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following table provides information related to insurance guarantees for which the Company has established additional liabilities:

		March 31, 2022					December 31, 2021
	Net Amount <br>at Risk			Weighted Average Attained Age		Net Amount <br>at Risk			Weighted Average Attained Age
	(in millions, except age)
UL secondary guarantees		$	6,563		68		$	6,564		68

The net amount at risk for UL secondary guarantees is defined as the current guaranteed death benefit amount in excess of the current policyholder account balance.

Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows:

		GMDB & GGU		GMIB		GMWB (1)		GMAB (1)		UL
	(in millions)
Balance at January 1, 2022		$	36	$	5	$	2,336	$	(23)	$	1,020
Incurred claims		—		—		(586)		6		31
Paid claims		(3)		—		—		—		(9)
Balance at March 31, 2022		$	33	$	5	$	1,750	$	(17)	$	1,042
Balance at January 1, 2021		$	24	$	6	$	3,049	$	1	$	916
Incurred claims		3		—		(1,570)		(23)		32
Paid claims		(1)		—		—		—		(8)
Balance at March 31, 2021		$	26	$	6	$	1,479	$	(22)	$	940

(1) The incurred claims for GMWB and GMAB include the change in the fair value of the liabilities (contra liabilities) less paid claims.

The liabilities for guaranteed benefits are supported by general account assets.

The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:

		March 31, 2022		December 31, 2021
	(in millions)
Mutual funds:
Equity		$	46,511	$	49,183
Bond		21,640		24,998
Other		7,438		8,316
Total mutual funds		$	75,589	$	82,497

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

10.  Debt

The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows:

		Outstanding Balance					Stated Interest Rate
	March 31, 2022			December 31, 2021		March 31, 2022		December 31, 2021
	(in millions)
Long-term debt:
Senior notes due 2022		$	—		$	500	—	%	3.0	%
Senior notes due 2023		750			750		4.0		4.0
Senior notes due 2024		550			550		3.7		3.7
Senior notes due 2025		500			500		3.0		3.0
Senior notes due 2026		500			500		2.9		2.9
Finance lease liabilities		37			40		N/A		N/A
Other (1)		(7)			(8)		N/A		N/A
Total long-term debt		2,330			2,832
Short-term borrowings:
Federal Home Loan Bank (“FHLB”) advances		200			200		0.6	%	0.3	%
Total		$	2,530		$	3,032

(1) Includes adjustments for net unamortized discounts, debt issuance costs and other lease obligations.

N/A Not Applicable

Long-Term Debt

The Company’s senior notes may be redeemed, in whole or in part, at any time prior to maturity at a price equal to the greater of the principal amount and the present value of remaining scheduled payments, discounted to the redemption date, plus accrued interest.

The Company repaid $500 million principal amount of its 3.0% senior notes at maturity on March 22, 2022.

Short-Term Borrowings

The Company’s life insurance and bank subsidiaries are members of the FHLB of Des Moines which provides access to collateralized borrowings. The Company has pledged Available-for-Sale securities consisting of commercial mortgage backed securities and residential mortgage backed securities as collateral to access these borrowings. The fair value of the securities pledged is recorded in Investments and was $1.2 billion of commercial mortgage backed securities as of both March 31, 2022 and December 31, 2021, and $587 million and $581 million, of residential mortgage backed securities, as of March 31, 2022 and December 31, 2021, respectively. The remaining maturity of outstanding FHLB advances was less than three months as of both March 31, 2022 and December 31, 2021. The stated interest rate of the FHLB advances is a weighted average annualized interest rate on the outstanding borrowings as of the balance sheet date.

In June 2021, the Company entered into an amended and restated credit agreement that provides for an unsecured revolving credit facility of up to $1.0 billion that expires in June 2026. Under the terms of the credit agreement for the facility, the Company may increase the amount of this facility up to $1.25 billion upon satisfaction of certain approval requirements. As of both March 31, 2022 and December 31, 2021, the Company had no borrowings outstanding and $1 million of letters of credit issued against the facility. The Company’s credit facility contains various administrative, reporting, legal and financial covenants. The Company was in compliance with all such covenants as of both March 31, 2022 and December 31, 2021.

11.  Fair Values of Assets and Liabilities

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale.

Valuation Hierarchy

The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The three levels of the fair value hierarchy are defined as follows:

Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date.

Level 2 Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities.

Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis (See Note 4 for the balances of assets and liabilities for consolidated investment entities):

		March 31, 2022
	Level 1			Level 2			Level 3			Total
	(in millions)
Assets
Cash equivalents		$	1,824		$	2,525		$	—		$	4,349
Available-for-Sale securities:
Corporate debt securities		—			8,885			497			9,382
Residential mortgage backed securities		—			11,695			—			11,695
Commercial mortgage backed securities		—			5,184			112			5,296
Asset backed securities		—			3,631			7			3,638
State and municipal obligations		—			1,001			—			1,001
U.S. government and agency obligations		1,160			—			—			1,160
Foreign government bonds and obligations		—			82			—			82
Other securities		—			76			—			76
Total Available-for-Sale securities		1,160			30,554			616			32,330
Investments at net asset value (“NAV”)											11		(1)
Trading and other securities		209			18			—			227
Separate account assets at NAV											89,669		(1)
Investments and cash equivalents segregated for regulatory purposes		599			—			—			599
Receivables:
Fixed deferred indexed annuity ceded embedded derivatives		—			—			55			55
Other assets:
Interest rate derivative contracts		3			736			—			739
Equity derivative contracts		149			3,707			—			3,856
Credit derivative contracts		—			45			—			45
Foreign exchange derivative contracts		2			28			—			30
Total other assets		154			4,516			—			4,670
Total assets at fair value		$	3,946		$	37,613		$	671		$	131,910			Liabilities
---	---	---	---	---	---	---	---	---	---
Policyholder account balances, future policy benefits and claims:
Fixed deferred indexed annuity embedded derivatives	$	—	$	5	$	52	$	57
IUL embedded derivatives	—		—		848		848
GMWB and GMAB embedded derivatives	—		—		828		828		(2)
Structured variable annuity embedded derivatives	—		—		280		280
Total policyholder account balances, future policy benefits and claims	—		5		2,008		2,013		(3)
Customer deposits	—		2		—		2
Other liabilities:
Interest rate derivative contracts	7		308		—		315
Equity derivative contracts	259		3,525		—		3,784
Foreign exchange derivative contracts	—		3		—		3
Other	204		5		62		271
Total other liabilities	470		3,841		62		4,373
Total liabilities at fair value	$	470	$	3,848	$	2,070	$	6,388

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

		December 31, 2021
	Level 1			Level 2			Level 3			Total
	(in millions)
Assets
Cash equivalents		$	2,341		$	3,478		$	—		$	5,819
Available-for-Sale securities:
Corporate debt securities		—			9,430			502			9,932
Residential mortgage backed securities		—			10,944			—			10,944
Commercial mortgage backed securities		—			4,951			35			4,986
Asset backed securities		—			3,647			7			3,654
State and municipal obligations		—			1,092			—			1,092
U.S. government and agency obligations		1,301			—			—			1,301
Foreign government bonds and obligations		—			92			—			92
Other securities		—			49			—			49
Total Available-for-Sale securities		1,301			30,205			544			32,050
Investments at NAV											11		(1)
Trading and other securities		217			25			—			242
Separate account assets at NAV											97,491		(1)
Investments and cash equivalents segregated for regulatory purposes		600			—			—			600
Receivables:
Fixed deferred indexed annuity ceded embedded derivatives		—			—			59			59
Other assets:
Interest rate derivative contracts		1			1,251			—			1,252
Equity derivative contracts		158			4,135			—			4,293
Credit derivative contracts		—			9			—			9
Foreign exchange derivative contracts		1			19			—			20
Total other assets		160			5,414			—			5,574
Total assets at fair value		$	4,619		$	39,122		$	603		$	141,846			Liabilities
---	---	---	---	---	---	---	---	---	---
Policyholder account balances, future policy benefits and claims:
Fixed deferred indexed annuity embedded derivatives	$	—	$	5	$	56	$	61
IUL embedded derivatives	—		—		905		905
GMWB and GMAB embedded derivatives	—		—		1,486		1,486		(4)
Structured variable annuity embedded derivatives	—		—		406		406
Total policyholder account balances, future policy benefits and claims	—		5		2,853		2,858		(5)
Customer deposits	—		4		—		4
Other liabilities:
Interest rate derivative contracts	1		467		—		468
Equity derivative contracts	101		3,653		—		3,754
Foreign exchange derivative contracts	1		—		—		1
Other	212		4		61		277
Total other liabilities	315		4,124		61		4,500
Total liabilities at fair value	$	315	$	4,133	$	2,914	$	7,362

(1) Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy.

(2) The fair value of the GMWB and GMAB embedded derivatives included $1.0 billion of individual contracts in a liability position and $204 million of individual contracts in an asset position (recorded as a contra liability) as of March 31, 2022.

(3) The Company’s adjustment for nonperformance risk resulted in a $607 million cumulative decrease to the embedded derivatives as of March 31, 2022.

(4) The fair value of the GMWB and GMAB embedded derivatives included $1.6 billion of individual contracts in a liability position and $133 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2021.

(5) The Company’s adjustment for nonperformance risk resulted in a $598 million cumulative decrease to the embedded derivatives as of December 31, 2021.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following tables provide a summary of changes in Level 3 assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis:

		Available-for-Sale Securities									Receivables
	Corporate Debt Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Total				Fixed Deferred Indexed Annuity Ceded Embedded Derivatives
		(in millions)
Balance at January 1, 2022		$	502		$	35		$	7		$	544			$	59
Total gains (losses) included in:
Net income		—			—			—			—		(1)		(3)
Other comprehensive income (loss)		(22)			—			—			(22)				—
Purchases		23			112			—			135				—
Settlements		(6)			—			—			(6)				(1)
Transfers out of Level 3		—			(35)			—			(35)				—
Balance at March 31, 2022		$	497		$	112		$	7		$	616			$	55
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at March 31, 2022		$	(21)		$	—		$	—		$	(21)			$	—			Policyholder Account Balances, Future Policy Benefits and Claims														Other Liabilities
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Fixed Deferred Indexed Annuity Embedded Derivatives			IUL Embedded Derivatives			GMWB and GMAB Embedded Derivatives			Structured Variable Annuity Embedded Derivatives			Total
	(in millions)
Balance at January 1, 2022	$	56		$	905		$	1,486		$	406		$	2,853	$	61
Total (gains) losses included in:
Net income	(3)		(2)	(32)		(2)	(679)		(3)	(124)		(3)	(838)		—		(4)
Other comprehensive income (loss)	—			—			—			—			—		(1)
Issues	—			—			87			4			91		8
Settlements	(1)			(25)			(66)			(6)			(98)		(6)
Balance at March 31, 2022	$	52		$	848		$	828		$	280		$	2,008	$	62
Changes in unrealized (gains) losses in net income relating to liabilities held at March 31, 2022	$	—		$	(32)	(2)	$	(671)	(3)	$	—		$	(703)	$	—

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

	Available-for-Sale Securities
	Corporate Debt Securities		Residential Mortgage Backed Securities		Asset Backed Securities		Total
	(in millions)
Balance at January 1, 2021	$	772	$	9	$	32	$	813
Total gains (losses) included in:
Net income	—		—		(1)		(1)		(1)
Other comprehensive income (loss)	(5)		—		—		(5)
Purchases	46		78		—		124
Settlements	(1)		—		(1)		(2)
Balance at March 31, 2021	$	812	$	87	$	30	$	929
Changes in unrealized gains (losses) in net income relating to assets held at March 31, 2021	$	—	$	—	$	(1)	$	(1)	(1)
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at March 31, 2021	$	(5)	$	—	$	—	$	(5)				Policyholder Account Balances, Future Policy Benefits and Claims														Other Liabilities
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Fixed Deferred Indexed Annuity Embedded Derivatives			IUL Embedded Derivatives			GMWB and GMAB Embedded Derivatives			Structured Variable Annuity Embedded Derivatives			Total
	(in millions)
Balance at January 1, 2021	$	49		$	935		$	2,316		$	70		$	3,370	$	43
Total (gains) losses included in:
Net income	4		(2)	29		(2)	(1,729)		(3)	75		(3)	(1,621)		—		(4)
Issues	—			5			90			(15)			80		2
Settlements	(1)			(20)			38			(6)			11		(2)
Balance at March 31, 2021	$	52		$	949		$	715		$	124		$	1,840	$	43
Changes in unrealized (gains) losses in net income relating to liabilities held at March 31, 2021	$	—		$	29	(2)	$	(1,705)	(3)	$	—		$	(1,676)	$	—

(1) Included in Net investment income.

(2) Included in Interest credited to fixed accounts.

(3) Included in Benefits, claims, losses and settlement expenses.

(4) Included in General and administrative expense.

The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $25 million and $(167) million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the three months ended March 31, 2022 and 2021, respectively.

Securities transferred from Level 3 primarily represent securities with fair values that are obtained from a third-party pricing service with observable inputs or fair values that were included in an observable transaction with a market participant. Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities:

	March 31, 2022
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	487	Discounted cash flow	Yield/spread to U.S. Treasuries (1)	0.9	%	–	3.0%	1.3%
Asset backed securities	$	2	Discounted cash flow	Annual short-term default rate (2)	0.8%				0.8%
				Annual long-term default rate (2)	3.5%				3.5%
				Discount rate	13.0%				13.0%
				Constant prepayment rate	10.0%				10.0%
				Loss recovery	63.6%				63.6%
Fixed deferred indexed annuity ceded embedded derivatives	$	55	Discounted cash flow	Surrender rate (4)	0.0	%	–	66.8%	1.4%
IUL embedded derivatives	$	848	Discounted cash flow	Nonperformance risk (3)	85 bps				85 bps
Fixed deferred indexed annuity embedded derivatives	$	52	Discounted cash flow	Surrender rate (4)	0.0	%	–	66.8%	1.4%
				Nonperformance risk (3)	85 bps				85 bps
GMWB and GMAB embedded derivatives	$	828	Discounted cash flow	Utilization of guaranteed withdrawals (5) (6)	0.0	%	–	48.0%	10.6%
				Surrender rate (4)	0.1	%	–	55.7%	3.6%
				Market volatility (7) (8)	4.3	%	–	16.5%	10.9%
				Nonperformance risk (3)	85 bps				85 bps
Structured variable annuity embedded derivatives	$	280	Discounted cash flow	Surrender rate (4)	0.8	%	–	40.0%	0.9%
				Nonperformance risk (3)	85 bps				85 bps
Contingent consideration liabilities	$	62	Discounted cash flow	Discount rate (9)	0.0	%	–	0.0%	0.0%
	December 31, 2021
---	---	---	---	---	---	---	---	---	---
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	502	Discounted cash flow	Yield/spread to U.S. Treasuries (1)	0.8	%	–	2.4%	1.1%
Asset backed securities	$	2	Discounted cash flow	Annual short-term default rate (2)	0.8%				0.8%
				Annual long-term default rate (2)	3.5%				3.5%
				Discount rate	12.0%				12.0%
				Constant prepayment rate	10.0%				10.0%
				Loss recovery	63.6%				63.6%
Fixed deferred indexed annuity ceded embedded derivatives	$	59	Discounted cash flow	Surrender rate (4)	0.0	%	–	66.8%	1.4%
IUL embedded derivatives	$	905	Discounted cash flow	Nonperformance risk (3)	65 bps				65 bps
Fixed deferred indexed annuity embedded derivatives	$	56	Discounted cash flow	Surrender rate (4)	0.0	%	–	66.8%	1.4%
				Nonperformance risk (3)	65 bps				65 bps
GMWB and GMAB embedded derivatives	$	1,486	Discounted cash flow	Utilization of guaranteed withdrawals (5) (6)	0.0	%	–	48.0%	10.6%
				Surrender rate (4)	0.1	%	–	55.7%	3.6%
				Market volatility (7) (8)	4.3	%	–	16.8%	10.8%
				Nonperformance risk (3)	65 bps				65 bps
Structured variable annuity embedded derivatives	$	406	Discounted cash flow	Surrender rate (4)	0.8	%	–	40.0%	0.9%
				Nonperformance risk (3)	65 bps				65 bps
Contingent consideration liabilities	$	61	Discounted cash flow	Discount rate (9)	0.0	%	–	0.0%	0.0%

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

(1) The weighted average for the spread to U.S. Treasuries for corporate debt securities (private placements) is weighted based on the security’s market value as a percentage of the aggregate market value of the securities.

(2) The weighted average annual default rates of asset backed securities is weighted based on the security’s market value as a percentage of the aggregate market value of the securities.

(3) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives.

(4) The weighted average surrender rate is weighted based on the benefit base of each contract and represents the average assumption in the current year including the effect of a dynamic surrender formula.

(5) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year.

(6) The weighted average utilization rate represents the average assumption for the current year, weighting each policy evenly. The calculation excludes policies that have already started taking withdrawals.

(7) Market volatility represents the implied volatility of fund of funds and managed volatility funds.

(8) The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit.

(9) The weighted average discount rate represents the average discount rate across all contingent consideration liabilities, weighted based on the size of the contingent consideration liability.

Level 3 measurements not included in the table above are obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company.

Uncertainty of Fair Value Measurements

Significant increases (decreases) in the yield/spread to U.S. Treasuries used in the fair value measurement of Level 3 corporate debt securities in isolation would have resulted in a significantly lower (higher) fair value measurement.

Significant increases (decreases) in the annual default rate and discount rate used in the fair value measurement of Level 3 asset backed securities in isolation, generally, would have resulted in a significantly lower (higher) fair value measurement and significant increases (decreases) in loss recovery in isolation would have resulted in a significantly lower (higher) fair value measurement.

Significant increases (decreases) in the constant prepayment rate in isolation would have resulted in a significantly lower (higher) fair value measurement.

Significant increases (decreases) in the surrender rate used in the fair value measurement of the fixed deferred indexed annuity ceded embedded derivatives in isolation would have resulted in a significantly lower (higher) fair value measurement.

Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would have resulted in a significantly lower (higher) fair value measurement.

Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurements of the fixed deferred indexed annuity embedded derivatives and structured variable annuity embedded derivatives in isolation would have resulted in a significantly lower (higher) liability value.

Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would have resulted in a significantly higher (lower) liability value.

Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would have resulted in a significantly lower (higher) liability value. Utilization of guaranteed withdrawals and surrender rates vary with the type of rider, the duration of the policy, the age of the contractholder, the distribution channel and whether the value of the guaranteed benefit exceeds the contract accumulation value.

Significant increases (decreases) in the discount rate used in the fair value measurement of the contingent consideration liability in isolation would have resulted in a significantly lower (higher) fair value measurement.

Determination of Fair Value

The Company uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The Company’s market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs.

The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy.

Assets

Cash Equivalents

Cash equivalents include time deposits and other highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. Actively traded money market funds are measured at their NAV and classified as Level 1. U.S. Treasuries are also classified as Level 1. The Company’s remaining cash equivalents are classified as Level 2 and measured at amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

realization.

Investments (Available-for-Sale Securities, Equity Securities and Trading Securities)

When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from third-party pricing services, non-binding broker quotes, or other model-based valuation techniques.

Level 1 securities primarily include equity securities and U.S. Treasuries.

Level 2 securities primarily include corporate bonds, residential mortgage backed securities, commercial mortgage backed securities, asset backed securities, state and municipal obligations, foreign government securities and other securities. The fair value of these Level 2 securities is based on a market approach with prices obtained from third-party pricing services. Observable inputs used to value these securities can include, but are not limited to, reported trades, benchmark yields, issuer spreads and non-binding broker quotes. The fair value of securities included in an observable transaction with a market participant are also considered Level 2 when the market is not active.

Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and asset backed securities with fair value typically based on a single non-binding broker quote. The underlying inputs used for some of the non-binding broker quotes are not readily available to the Company. The Company’s privately placed corporate bonds are typically based on a single non-binding broker quote. The fair value of certain asset backed securities is determined using a discounted cash flow model. Inputs used to determine the expected cash flows include assumptions about discount rates and default, prepayment and recovery rates of the underlying assets. Given the significance of the unobservable inputs to this fair value measurement, the fair value of the investment in certain asset backed securities is classified as Level 3.

In consideration of the above, management is responsible for the fair values recorded on the financial statements. Prices received from third-party pricing services are subjected to exception reporting that identifies investments with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of third-party pricing services. The Company’s due diligence procedures include assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise.

Separate Account Assets

The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV is used as a practical expedient for fair value and represents the exit price for the separate account. Separate account assets are excluded from classification in the fair value hierarchy.

Investments and Cash Equivalents Segregated for Regulatory Purposes

Investments and cash equivalents segregated for regulatory purposes includes U.S. Treasuries that are classified as Level 1.

Receivables

During the third quarter of 2021, the Company reinsured its fixed deferred indexed annuity products which have an indexed account that is accounted for as an embedded derivative. The Company uses discounted cash flow models to determine the fair value of these ceded embedded derivatives. The fair value of fixed deferred indexed annuity ceded embedded derivatives includes significant observable interest rates, volatilities and equity index levels and significant unobservable surrender rates. Given the significance of the unobservable surrender rates, these embedded derivatives are classified as Level 3.

Other Assets

Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active over-the-counter (“OTC”) markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps, foreign currency forwards and the majority of options. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of March 31, 2022 and December 31, 2021. See Note 12 and Note 13 for further information on the credit risk of derivative instruments and related collateral.

Liabilities

Policyholder Account Balances, Future Policy Benefits and Claims

There is no active market for the transfer of the Company’s embedded derivatives attributable to the provisions of certain variable annuity riders, fixed deferred indexed annuity, structured variable annuity and IUL products.

The Company values the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value as the present value of future expected benefit payments less the present value of future

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

expected rider fees attributable to the embedded derivative feature. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to implied volatility as well as contractholder behavior assumptions that include margins for risk, all of which the Company believes a market participant would expect. The fair value also reflects a current estimate of the Company’s nonperformance risk specific to these embedded derivatives. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in Policyholder account balances, future policy benefits and claims.

The Company uses a discounted cash flow model to determine the fair value of the embedded derivatives associated with the provisions of its equity index annuity product. The projected cash flows generated by this model are based on significant observable inputs related to interest rates, volatilities and equity index levels and, therefore, are classified as Level 2.

The Company uses discounted cash flow models to determine the fair value of the embedded derivatives associated with the provisions of its fixed deferred indexed annuity, structured variable annuity and IUL products. The structured variable annuity product is a limited flexible purchase payment annuity that offers 45 different indexed account options providing equity market exposure and a fixed account. Each indexed account includes a protection option (a buffer or a floor). If the index has a negative return, contractholder losses will be reduced by a buffer or limited to a floor. The portion allocated to an indexed account is accounted for as an embedded derivative. The fair value of fixed deferred indexed annuity, structured variable annuity and IUL embedded derivatives includes significant observable interest rates, volatilities and equity index levels and significant unobservable surrender rates and the estimate of the Company’s nonperformance risk. Given the significance of the unobservable surrender rates and the nonperformance risk assumption, the fixed deferred indexed annuity, structured variable annuity and IUL embedded derivatives are classified as Level 3.

The embedded derivatives attributable to these provisions are recorded in Policyholder account balances, future policy benefits and claims.

Customer Deposits

The Company uses discounted cash flow models to determine the fair value of the embedded derivative liability associated with the provisions of its stock market certificates (“SMC”). The inputs to these calculations are primarily market observable and include interest rates, volatilities and equity index levels. As a result, these measurements are classified as Level 2.

Other Liabilities

Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active OTC markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps, foreign currency forwards and the majority of options. The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of March 31, 2022 and December 31, 2021. See Note 12 and Note 13 for further information on the credit risk of derivative instruments and related collateral.

Securities sold but not yet purchased represent obligations of the Company to deliver specified securities that it does not yet own, creating a liability to purchase the security in the market at prevailing prices. When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from nationally-recognized pricing services, or other model-based valuation techniques such as the present value of cash flows. Level 1 securities sold but not yet purchased primarily include equity securities and U.S. Treasuries traded in active markets. Level 2 securities sold but not yet purchased primarily include corporate bonds.

Contingent consideration liabilities consist of earn-outs and/or deferred payments related to the Company’s acquisitions. Contingent consideration liabilities are recorded at fair value utilizing a discounted cash flow model using an unobservable input (discount rate). Given the use of a significant unobservable input, the fair value of contingent consideration liabilities is classified as Level 3 within the fair value hierarchy.

Fair Value on a Nonrecurring Basis

The Company assesses its investment in affordable housing partnerships for impairment. The investments that are determined to be impaired are written down to their fair value. The Company uses a discounted cash flow model to measure the fair value of these investments. Inputs to the discounted cash flow model are estimates of future net operating losses and tax credits available to the Company and discount rates based on market condition and the financial strength of the syndicator (general partner). The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $87 million and $93 million as of March 31, 2022 and December 31, 2021, respectively, and is classified as Level 3 in the fair value hierarchy.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Assets and Liabilities Not Reported at Fair Value

The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value:

	March 31, 2022
	Carrying Value		Fair Value
		Level 1			Level 2			Level 3			Total
	(in millions)
Financial Assets
Mortgage loans, net	$	1,971	$	—		$	45		$	1,890		$	1,935
Policy loans	833		—			833			—			833
Receivables	10,482		178			1,744			8,357			10,279
Restricted and segregated cash	2,069		2,069			—			—			2,069
Other investments and assets	374		—			323			51			374
Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	12,841	$	—		$	—		$	12,678		$	12,678
Investment certificate reserves	5,195		—			—			5,175			5,175
Banking and brokerage deposits	16,853		16,853			—			—			16,853
Separate account liabilities — investment contracts	5,368		—			5,368			—			5,368
Debt and other liabilities	2,776		269			2,517			8			2,794				December 31, 2021
---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Carrying Value		Fair Value
		Level 1			Level 2			Level 3			Total
	(in millions)
Financial Assets
Mortgage loans, net	$	1,953	$	—		$	49		$	1,990		$	2,039
Policy loans	835		—			835			—			835
Receivables	10,509		135			1,669			9,404			11,208
Restricted and segregated cash	2,195		2,195			—			—			2,195
Other investments and assets	368		—			319			49			368
Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	12,342	$	—		$	—		$	13,264		$	13,264
Investment certificate reserves	5,297		—			—			5,290			5,290
Banking and brokerage deposits	14,931		14,931			—			—			14,931
Separate account liabilities — investment contracts	5,657		—			5,657			—			5,657
Debt and other liabilities	3,214		206			3,129			9			3,344

Receivables include deposit receivables, brokerage margin loans, securities borrowed, pledged asset lines of credit, and loans to financial advisors. Restricted and segregated cash includes cash segregated under federal and other regulations held in special reserve bank accounts for the exclusive benefit of the Company’s brokerage customers. Other investments and assets primarily include syndicated loans, credit card receivables, certificate of deposits with original or remaining maturities at the time of purchase of more than 90 days, the Company’s membership in the FHLB and investments related to the Community Reinvestment Act. See Note 6 for additional information on mortgage loans, policy loans, syndicated loans, credit card receivables and deposit receivables.

Policyholder account balances, future policy benefits and claims include fixed annuities in deferral status, non-life contingent fixed annuities in payout status, indexed and structured variable annuity host contracts, and the fixed portion of a small number of variable annuity contracts classified as investment contracts. See Note 8 for additional information on these liabilities. Investment certificate reserves represent customer deposits for fixed rate certificates and stock market certificates. Banking and brokerage deposits are amounts payable to customers related to free credit balances, funds deposited by customers and funds accruing to customers as a result of trades or contracts. Separate account liabilities are primarily investment contracts in pooled pension funds offered by Threadneedle. Debt and other liabilities include the Company’s long-term debt, short-term borrowings, securities loaned and future funding commitments to affordable housing partnerships and other real estate partnerships. See Note 10 for further information on the Company’s long-term debt and short-term borrowings.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

12.  Offsetting Assets and Liabilities

Certain financial instruments and derivative instruments are eligible for offset in the Consolidated Balance Sheets. The Company’s derivative instruments and securities borrowing and lending agreements are subject to master netting and collateral arrangements and qualify for offset. A master netting arrangement with a counterparty creates a right of offset for amounts due to and from that same counterparty that is enforceable in the event of a default or bankruptcy. Securities borrowed and loaned result from transactions between the Company’s broker dealer subsidiary and other financial institutions and are recorded at the amount of cash collateral advanced or received. Securities borrowed and securities loaned are primarily equity securities. The Company’s securities borrowed and securities loaned transactions generally do not have a fixed maturity date and may be terminated by either party under customary terms.

The Company’s policy is to recognize amounts subject to master netting arrangements on a gross basis in the Consolidated Balance Sheets.

The following tables present the gross and net information about the Company’s assets subject to master netting arrangements:

			March 31, 2022
	Gross Amounts of Recognized Assets				Gross Amounts Offset in the Consolidated Balance Sheets				Amounts of Assets Presented in the Consolidated Balance Sheets			Gross Amounts Not Offset in the <br>Consolidated Balance Sheets							Net Amount
		Financial Instruments (1)						Cash Collateral				Securities Collateral
	(in millions)
Derivatives:
OTC			$	4,416		$	—			$	4,416		$	(3,271)	$	(1,089)	$	—		$	56
OTC cleared			156			—				156			(82)		—		—			74
Exchange-traded			98			—				98			(89)		—		—			9
Total derivatives			4,670			—				4,670			(3,442)		(1,089)		—			139
Securities borrowed			178			—				178			(64)		—		(111)			3
Total			$	4,848		$	—			$	4,848		$	(3,506)	$	(1,089)	$	(111)		$	142					December 31, 2021
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Gross Amounts of Recognized Assets				Gross Amounts Offset in the Consolidated Balance Sheets				Amounts of Assets Presented in the Consolidated Balance Sheets			Gross Amounts Not Offset in the <br>Consolidated Balance Sheets							Net Amount
		Financial Instruments (1)						Cash Collateral				Securities Collateral
	(in millions)
Derivatives:
OTC			$	5,387		$	—			$	5,387		$	(3,613)	$	(1,637)	$	(114)		$	23
OTC cleared			88			—				88			(41)		—		—			47
Exchange-traded			99			—				99			(91)		—		—			8
Total derivatives			5,574			—				5,574			(3,745)		(1,637)		(114)			78
Securities borrowed			135			—				135			(41)		—		(91)			3
Total			$	5,709		$	—			$	5,709		$	(3,786)	$	(1,637)	$	(205)		$	81

(1) Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements:

			March 31, 2022
	Gross Amounts of Recognized Liabilities				Gross Amounts Offset in the <br>Consolidated Balance Sheets				Amounts of Liabilities Presented in the Consolidated Balance Sheets			Gross Amounts Not Offset in the <br>Consolidated Balance Sheets							Net Amount
		Financial Instruments (1)						Cash Collateral				Securities Collateral
	(in millions)
Derivatives:
OTC			$	3,839		$	—			$	3,839		$	(3,271)	$	(169)	$	(393)		$	6
OTC cleared			82			—				82			(82)		—		—			—
Exchange-traded			181			—				181			(89)		(89)		—			3
Total derivatives			4,102			—				4,102			(3,442)		(258)		(393)			9
Securities loaned			269			—				269			(64)		—		(197)			8
Total			$	4,371		$	—			$	4,371		$	(3,506)	$	(258)	$	(590)		$	17					December 31, 2021
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Gross Amounts of Recognized Liabilities				Gross Amounts Offset in the <br>Consolidated Balance Sheets				Amounts of Liabilities Presented in the Consolidated Balance Sheets			Gross Amounts Not Offset in the <br>Consolidated Balance Sheets							Net Amount
		Financial Instruments (1)						Cash Collateral				Securities Collateral
	(in millions)
Derivatives:
OTC			$	4,091		$	—			$	4,091		$	(3,613)	$	(183)	$	(292)		$	3
OTC cleared			41			—				41			(41)		—		—			—
Exchange-traded			91			—				91			(91)		—		—			—
Total derivatives			4,223			—				4,223			(3,745)		(183)		(292)			3
Securities loaned			207			—				207			(41)		—		(160)			6
Total			$	4,430		$	—			$	4,430		$	(3,786)	$	(183)	$	(452)		$	9

(1) Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets.

In the tables above, the amount of assets or liabilities presented are offset first by financial instruments that have the right of offset under master netting or similar arrangements, then any remaining amount is reduced by the amount of cash and securities collateral. The actual collateral may be greater than amounts presented in the tables.

When the fair value of collateral accepted by the Company is less than the amount due to the Company, there is a risk of loss if the counterparty fails to perform or provide additional collateral. To mitigate this risk, the Company monitors collateral values regularly and requires additional collateral when necessary. When the value of collateral pledged by the Company declines, it may be required to post additional collateral.

Freestanding derivative instruments are reflected in Other assets and Other liabilities. Cash collateral pledged by the Company is reflected in Other assets and cash collateral accepted by the Company is reflected in Other liabilities. Securities borrowing and lending agreements are reflected in Receivables and Other liabilities, respectively. See Note 13 for additional disclosures related to the Company’s derivative instruments and Note 4 for information related to derivatives held by consolidated investment entities.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

13.  Derivatives and Hedging Activities

Derivative instruments enable the Company to manage its exposure to various market risks. The value of such instruments is derived from an underlying variable or multiple variables, including equity, foreign exchange and interest rate indices or prices. The Company primarily enters into derivative agreements for risk management purposes related to the Company’s products and operations.

Certain of the Company’s freestanding derivative instruments are subject to master netting arrangements. The Company’s policy on the recognition of derivatives on the Consolidated Balance Sheets is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. See Note 12 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral.

Generally, the Company uses derivatives as economic hedges and accounting hedges. The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives:

			March 31, 2022										December 31, 2021
	Notional			Gross Fair Value						Notional		Gross Fair Value
		Assets (1)			Liabilities (2)(3)			Assets (1)			Liabilities (2)(3)
	(in millions)
Derivatives designated as hedging instruments
Equity contracts - cash flow hedges			$	19		$	1		$	—			$	19	$	—	$	—
Foreign exchange contracts – net investment hedges			140			4			—				58		—		—
Total qualifying hedges			159			5			—				77		—		—
Derivatives not designated as hedging instruments
Interest rate contracts			82,224			739			315				79,468		1,252		468
Equity contracts			63,450			3,855			3,784				61,142		4,293		3,754
Credit contracts			2,175			45			—				1,748		9		—
Foreign exchange contracts			2,614			26			3				2,380		20		1
Total non-designated hedges			150,463			4,665			4,102				144,738		5,574		4,223
Embedded derivatives
GMWB and GMAB (4)			N/A			—			828				N/A		—		1,486
IUL			N/A			—			848				N/A		—		905
Fixed deferred indexed annuities and deposit receivables			N/A			55			57				N/A		59		61
Structured variable annuities			N/A			—			280				N/A		—		406
SMC			N/A			—			2				N/A		—		4
Total embedded derivatives			N/A			55			2,015				N/A		59		2,862
Total derivatives			$	150,622		$	4,725		$	6,117			$	144,815	$	5,633	$	7,085

N/A  Not applicable.

(1) The fair value of freestanding derivative assets is included in Other assets and the fair value of ceded embedded derivative assets related to deposit receivables is included in Receivables.

(2) The fair value of freestanding derivative liabilities is included in Other liabilities. The fair value of GMWB and GMAB, IUL, fixed deferred indexed annuity and structured variable annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims. The fair value of the SMC embedded derivative liability is included in Customer deposits.

(3) The fair value of the Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $2.4 billion and $3.2 billion as of March 31, 2022 and December 31, 2021, respectively. See Note 12 for additional information related to master netting arrangements and cash collateral.

(4) The fair value of the GMWB and GMAB embedded derivatives as of March 31, 2022 included $1.0 billion of individual contracts in a liability position and $204 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2021 included $1.6 billion of individual contracts in a liability position and $133 million of individual contracts in an asset position.

See Note 11 for additional information regarding the Company’s fair value measurement of derivative instruments.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

As of March 31, 2022 and December 31, 2021, investment securities with a fair value of nil and $123 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which nil and $123 million, respectively, may be sold, pledged or rehypothecated by the Company. As of both March 31, 2022 and December 31, 2021, the Company had sold, pledged or rehypothecated none of these securities. In addition, as of both March 31, 2022 and December 31, 2021, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.

Derivatives Not Designated as Hedges

The following table presents a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Operations:

	Net Investment Income		Banking and Deposit Interest Expense		Distribution Expenses		Interest Credited to Fixed Accounts		Benefits, Claims, Losses and Settlement Expenses		General and Administrative Expense
	(in millions)
Three Months Ended March 31, 2022
Interest rate contracts	$	—	$	—	$	—	$	—	$	(1,118)	$	—
Equity contracts	8		—		(61)		(16)		224		(7)
Credit contracts	—		—		(1)		—		97		—
Foreign exchange contracts	(1)		—		—		—		31		—
GMWB and GMAB embedded derivatives	—		—		—		—		658		—
IUL embedded derivatives	—		—		—		57		—		—
Fixed deferred indexed annuity and deposit receivables embedded derivatives	—		—		—		1		—		—
Structured variable annuity embedded derivatives	—		—		—		—		123		—
Total gain (loss)	$	7	$	—	$	(62)	$	42	$	15	$	(7)			Net Investment Income		Banking and Deposit Interest Expense		Distribution Expenses		Interest Credited to Fixed Accounts		Benefits, Claims, Losses and Settlement Expenses		General and Administrative Expense
---	---	---	---	---	---	---	---	---	---	---	---	---
	(in millions)
Three Months Ended March 31, 2021
Interest rate contracts	$	—	$	—	$	(1)	$	—	$	(1,825)	$	—
Equity contracts	1		1		33		25		(310)		6
Credit contracts	—		—		—		—		69		—
Foreign exchange contracts	—		—		—		—		11		(4)
GMWB and GMAB embedded derivatives	—		—		—		—		1,600		—
IUL embedded derivatives	—		—		—		(9)		—		—
Fixed deferred indexed annuity embedded derivatives	—		—		—		(5)		—		—
Structured variable annuity embedded derivatives	—		—		—		—		(75)		—
SMC embedded derivatives	—		(1)		—		—		—		—
Total gain (loss)	$	1	$	—	$	32	$	11	$	(530)	$	2

The Company holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment. These derivative instruments are used as economic hedges of equity, interest rate, credit and foreign currency exchange rate risk related to various products and transactions of the Company.

Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of consideration received at the beginning of the contract period, after a specified holding period, respectively. The indexed portion of structured variable annuities and the GMAB and non-life contingent GMWB provisions are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. The Company economically hedges the aggregate exposure related to the indexed portion of structured variable annuities and the GMAB and non-life contingent GMWB provisions using options, swaptions, swaps and futures.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The deferred premium associated with certain of the above options and swaptions is paid or received semi-annually over the life of the contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of March 31, 2022:

		Premiums Payable		Premiums Receivable
	(in millions)
2022 (1)		$	130	$	192
2023		50		43
2024		135		24
2025		123		21
2026		252		88
2027 - 2028		18		—
Total		$	708	$	368

(1) 2022 amounts represent the amounts payable and receivable for the period from April 1, 2022 to December 31, 2022.

Actual timing and payment amounts may differ due to future settlements, modifications or exercises of the contracts prior to the full premium being paid or received.

The Company has a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on its statutory surplus and to cover some of the residual risks not covered by other hedging activities. As a means of economically hedging these risks, the Company may use a combination of futures, options, swaps and swaptions. Certain of the macro hedge derivatives may contain settlement provisions linked to both equity returns and interest rates. The Company’s macro hedge derivatives that contain settlement provisions linked to both equity returns and interest rates, if any, are shown in other contracts in the tables above.

Structured variable annuity, IUL and stock market certificate products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by the Company related to structured variable annuity, IUL and stock market certificate products will positively or negatively impact earnings over the life of these products. The equity component of structured variable annuity, IUL and stock market certificate product obligations are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. As a means of economically hedging its obligations under the provisions of these products, the Company enters into interest rate swaps, index options and futures contracts.

The Company enters into futures, credit default swaps, commodity swaps, total return swaps and foreign currency forwards to manage its exposure to price risk arising from seed money investments in proprietary investment products. The Company enters into foreign currency forward contracts to economically hedge its exposure to certain foreign transactions. The Company enters into futures contracts, total return swaps and foreign currency forwards to economically hedge its exposure related to compensation plans. The Company enters into interest rate swaps to offset interest rate changes on unrealized gains or losses for certain investments.

Cash Flow Hedges

The Company has designated derivative instruments as a cash flow hedge for equity exposure of certain compensation-related liabilities and interest rate exposure on forecasted debt interest payments. For derivative instruments that qualify as cash flow hedges, the gain or loss on the derivative instruments is reported in AOCI and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented within the same line item as the earnings impact of the hedged item in interest and debt expense.

For the three months ended March 31, 2022 and 2021, the amounts reclassified from AOCI to earnings related to cash flow hedges were immaterial. The estimated net amount recorded in AOCI as of March 31, 2022 that the Company expects to reclassify to earnings as a reduction to interest and debt expense within the next twelve months is $0.6 million. Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is 14 years and relates to forecasted debt interest payments. See Note 14 for a rollforward of net unrealized derivative gains (losses) included in AOCI related to cash flow hedges.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Net Investment Hedges

The Company entered into, and designated as net investment hedges in foreign operations, forward contracts to hedge a portion of the Company’s foreign currency exchange rate risk associated with its investment in Threadneedle. As the Company determined that the forward contracts are effective, the change in fair value of the derivatives is recognized in AOCI as part of the foreign currency translation adjustment. For the three months ended March 31, 2022 and 2021, the Company recognized a gain of $4 million and a loss of $0.5 million, respectively, in OCI.

Credit Risk

Credit risk associated with the Company’s derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. To mitigate such risk, the Company has established guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes members of senior management. Key components of this program are to require preapproval of counterparties and the use of master netting and collateral arrangements whenever practical. See Note 12 for additional information on the Company’s credit exposure related to derivative assets.

Certain of the Company’s derivative contracts contain provisions that adjust the level of collateral the Company is required to post based on the Company’s debt rating (or based on the financial strength of the Company’s life insurance subsidiaries for contracts in which those subsidiaries are the counterparty). Additionally, certain of the Company’s derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company’s debt does not maintain a specific credit rating (generally an investment grade rating) or the Company’s life insurance subsidiary does not maintain a specific financial strength rating. If these termination provisions were to be triggered, the Company’s counterparty could require immediate settlement of any net liability position. As of March 31, 2022 and December 31, 2021, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $467 million and $383 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of March 31, 2022 and December 31, 2021 was $462 million and $383 million, respectively. If the credit contingent provisions of derivative contracts in a net liability position as of March 31, 2022 and December 31, 2021 were triggered, the aggregate fair value of additional assets that would be required to be posted as collateral or needed to settle the instruments immediately would have been $5 million and nil, respectively.

14.  Shareholders’ Equity

The following tables provide the amounts related to each component of OCI:

	Three Months Ended March 31,
	2022						2021
	Pretax		Income Tax Benefit (Expense)		Net of Tax		Pretax		Income Tax Benefit (Expense)		Net of Tax
	(in millions)
Net unrealized gains (losses) on securities:
Net unrealized gains (losses) on securities arising during the period (1)	$	(1,592)	$	347	$	(1,245)	$	(690)	$	152	$	(538)
Reclassification of net (gains) losses on securities included in net income (2)	(20)		4		(16)		(50)		11		(39)
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables	516		(108)		408		300		(63)		237
Net unrealized gains (losses) on securities	(1,096)		243		(853)		(440)		100		(340)
Net unrealized gains (losses) on derivatives:
Net unrealized gains (losses) on derivatives arising during the period	1		—		1		—		—		—
Net unrealized gains (losses) on derivatives	1		—		1		—		—		—
Defined benefit plans:
Net gains (losses)	—		—		—		37		(8)		29
Defined benefit plans	—		—		—		37		(8)		29
Foreign currency translation	(58)		12		(46)		(1)		—		(1)
Total other comprehensive income (loss)	$	(1,153)	$	255	$	(898)	$	(404)	$	92	$	(312)

(1) Includes impairments on Available-for-Sale securities related to factors other than credit that were recognized in OCI during the period.

(2) Reclassification amounts are recorded in Net investment income.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

Other comprehensive income (loss) related to net unrealized gains (losses) on securities includes three components: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit OTTI losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates.

The following table presents the changes in the balances of each component of AOCI, net of tax:

	Net Unrealized Gains (Losses) <br>on Securities		Net Unrealized Gains (Losses) <br>on Derivatives		Defined <br>Benefit Plans		Foreign Currency Translation		Other		Total
	(in millions)
Balance, January 1, 2022	$	318	$	4	$	(151)	$	(167)	$	(1)	$	3
OCI before reclassifications	(837)		1		—		(46)		—		(882)
Amounts reclassified from AOCI	(16)		—		—		—		—		(16)
Total OCI	(853)		1		—		(46)		—		(898)
Balance, March 31, 2022	$	(535)	$	5	$	(151)	$	(213)	$	(1)	$	(895)			Net Unrealized Gains (Losses) <br>on Securities		Net Unrealized Gains (Losses) <br>on Derivatives		Defined <br>Benefit Plans		Foreign Currency Translation		Other		Total
---	---	---	---	---	---	---	---	---	---	---	---	---
	(in millions)
Balance, January 1, 2021	$	983	$	5	$	(204)	$	(154)	$	(1)	$	629
OCI before reclassifications	(301)		—		29		(1)		—		(273)
Amounts reclassified from AOCI	(39)		—		—		—		—		(39)
Total OCI	(340)		—		29		(1)		—		(312)
Balance, March 31, 2021	$	643	$	5	$	(175)	$	(155)	$	(1)	$	317

For the three months ended March 31, 2022 and 2021, the Company repurchased a total of 1.4 million shares and 1.7 million shares, respectively, of its common stock for an aggregate cost of $429 million and $363 million, respectively. In August 2020, the Company’s Board of Directors authorized a repurchase of up to $2.5 billion for the repurchase of shares of the Company’s common stock through September 30, 2022. On January 26, 2022, the Company’s Board of Directors authorized an additional $3.0 billion for the repurchase of the Company’s common stock through March 31, 2024. As of March 31, 2022, the Company had $3.0 billion remaining under the share repurchase authorization.

The Company may also reacquire shares of its common stock under its share-based compensation plans related to restricted stock awards and certain option exercises. The holders of restricted shares may elect to surrender a portion of their shares on the vesting date to cover their income tax obligation. These vested restricted shares are reacquired by the Company and the Company’s payment of the holders’ income tax obligations are recorded as a treasury share purchase.

For the three months ended March 31, 2022 and 2021, the Company reacquired 0.3 million shares and 0.3 million shares, respectively, of its common stock through the surrender of shares upon vesting and paid in the aggregate $89 million and $57 million, respectively, related to the holders’ income tax obligations on the vesting date. Option holders may elect to net settle their vested awards resulting in the surrender of the number of shares required to cover the strike price and tax obligation of the options exercised. These shares are reacquired by the Company and recorded as treasury shares. For the three months ended March 31, 2022 and 2021, the Company reacquired 0.2 million shares and 0.6 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $62 million and $134 million, respectively.

During the three months ended March 31, 2022 and 2021, the Company reissued 0.5 million and 0.3 million, respectively, treasury shares for restricted stock award grants, performance share units and issuance of shares vested under advisor deferred compensation plans.

15.  Income Taxes

The Company’s effective tax rate was 17.6% and 11.3% for the three months ended March 31, 2022 and 2021, respectively.

The effective tax rate for the three months ended March 31, 2022 is lower than the statutory tax rate as a result of tax preferred items including incentive compensation, foreign tax credits, and low income housing tax credits, partially offset by state income taxes, net of federal benefit.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

The effective tax rate for the three months ended March 31, 2021 is lower than the statutory tax rate as a result of tax preferred items including incentive compensation, low income housing tax credits, foreign tax credits and dividends received deduction, partially offset by state income taxes, net of federal benefit.

The higher effective tax rate for the three months ended March 31, 2022 compared to March 31, 2021 is primarily the result of higher pretax income and a decrease in low income housing tax credits, partially offset by an increase in incentive compensation in the current period compared to the prior period.

Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $12 million, net of federal benefit, which will expire beginning December 31, 2022 and foreign net operating losses of $40 million.

The Company is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuation allowance should be established, and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business. Consideration is given to, among other things in making this determination, (i) future taxable income exclusive of reversing temporary differences and carryforwards, (ii) future reversals of existing taxable temporary differences, (iii) taxable income in prior carryback years, and (iv) tax planning strategies. Based on analysis of the Company’s tax position, management believes it is more likely than not that the Company will not realize certain state net operating losses of $11 million, state deferred tax assets of $3 million and foreign net operating losses of $18 million; therefore, a valuation allowance has been established. The valuation allowance was $32 million as of both March 31, 2022 and December 31, 2021.

As of March 31, 2022 and December 31, 2021, the Company had $130 million and $125 million, respectively, of gross unrecognized tax benefits. If recognized, approximately $99 million and $95 million, net of federal tax benefits, of unrecognized tax benefits as of March 31, 2022 and December 31, 2021, respectively, would affect the effective tax rate.

It is reasonably possible that the total amount of unrecognized tax benefits will change in the next 12 months. The Company estimates that the total amount of gross unrecognized tax benefits may decrease by $35 million to $45 million in the next 12 months primarily due to Internal Revenue Service (“IRS”) settlements and state exams.

The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized a net increase of $1 million and a net decrease of $2 million in interest and penalties for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022 and December 31, 2021, the Company had a payable of $11 million and $10 million, respectively, related to accrued interest and penalties.

The Company or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The federal statute of limitations are closed on years through 2015, except for one issue for 2014 and 2015 which was claimed on amended returns. The IRS is currently auditing the Company’s U.S. income tax returns for 2016 through 2020. The Company’s state income tax returns are currently under examination by various jurisdictions for years ranging from 2015 through 2020.

16.  Contingencies

Contingencies

The Company and its subsidiaries are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection with the conduct of its activities as a diversified financial services firm. These include proceedings specific to the Company as well as proceedings generally applicable to business practices in the industries in which it operates. The Company can also be subject to legal proceedings arising out of its general business activities, such as its investments, contracts, leases and employment relationships. Uncertain economic conditions, heightened and sustained volatility in the financial markets and significant financial reform legislation may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that regulators increase the scope or frequency of examinations of the Company or the financial services industry generally.

As with other financial services firms, the level of regulatory activity and inquiry concerning the Company’s businesses remains elevated. From time to time, the Company receives requests for information from, and/or has been subject to examination or claims by, the SEC, the Financial Industry Regulatory Authority, the OCC, the U.K. Financial Conduct Authority, the Federal Reserve Board, state insurance and securities regulators, state attorneys general and various other domestic or foreign governmental and quasi-governmental authorities on behalf of themselves or clients concerning the Company’s business activities and practices, and the practices of the Company’s financial advisors. The Company typically has numerous pending matters which include information requests, exams or inquiries regarding certain subjects, including from time to time: sales and distribution of mutual funds, exchange traded funds, annuities, equity and fixed income securities, real estate investment trusts, insurance products, and financial advice offerings, including managed accounts; wholesaler activity; supervision of the Company’s financial advisors and other associated persons; administration of insurance and annuity claims; security of client information; trading activity and the Company’s monitoring

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

and supervision of such activity; and transaction monitoring systems and controls. The Company has cooperated and will continue to cooperate with the applicable regulators.

These legal proceedings are subject to uncertainties and, as such, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to reasonably estimate the amount of any loss. The Company cannot predict with certainty if, how or when any such proceedings will be initiated or resolved. Matters frequently need to be more developed before a loss or range of loss can be reasonably estimated for any proceeding. An adverse outcome in one or more proceedings could eventually result in adverse judgments, settlements, fines, penalties or other sanctions, in addition to further claims, examinations or adverse publicity that could have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.

In accordance with applicable accounting standards, the Company establishes an accrued liability for contingent litigation and regulatory matters when those matters present loss contingencies that are both probable and can be reasonably estimated. The Company discloses the nature of the contingency when management believes there is at least a reasonable possibility that the outcome may be material to the Company’s consolidated financial statements and, where feasible, an estimate of the possible loss. In such cases, there still may be an exposure to loss in excess of any amounts reasonably estimated and accrued. When a loss contingency is not both probable and reasonably estimable, the Company does not establish an accrued liability, but continues to monitor, in conjunction with any outside counsel handling a matter, further developments that would make such loss contingency both probable and reasonably estimable. Once the Company establishes an accrued liability with respect to a loss contingency, the Company continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established, and any appropriate adjustments are made each quarter.

Guaranty Fund Assessments

RiverSource Life and RiverSource Life Insurance Co. of New York (“RiverSource Life of NY”) are required by law to be a member of the guaranty fund association in every state where they are licensed to do business. In the event of insolvency of one or more unaffiliated insurance companies, the Company could be adversely affected by the requirement to pay assessments to the guaranty fund associations. The Company projects its cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations and the amount of its premiums written relative to the industry-wide premium in each state. The Company accrues the estimated cost of future guaranty fund assessments when it is considered probable that an assessment will be imposed, the event obligating the Company to pay the assessment has occurred and the amount of the assessment can be reasonably estimated.

The Company has a liability for estimated guaranty fund assessments and a related premium tax asset. As of both March 31, 2022 and December 31, 2021, the estimated liability was $12 million. As of both March 31, 2022 and December 31, 2021, the related premium tax asset was $10 million. The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known.

17.  Earnings per Share

The computations of basic and diluted earnings per share is as follows:

	Three Months Ended March 31,
		2022			2021
			(in millions, except per share amounts)
Numerator:
Net income				$	761	$	437
Denominator:
Basic: Weighted-average common shares outstanding				113.7		119.8
Effect of potentially dilutive nonqualified stock options and other share-based awards				2.5		2.4
Diluted: Weighted-average common shares outstanding				116.2		122.2
Earnings per share:
Basic				$	6.69	$	3.65
Diluted				$	6.55	$	3.58

The calculation of diluted earnings per share excludes the incremental effect of 0.2 million and 0.3 million options as of March 31, 2022 and 2021 respectively, due to their anti-dilutive effect.

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

18.  Segment Information

The Company’s four reporting segments are Advice & Wealth Management, Asset Management, Retirement & Protection Solutions and Corporate & Other.

The accounting policies of the segments are the same as those of the Company, except for operating adjustments defined below, the method of capital allocation, the accounting for gains (losses) from intercompany revenues and expenses and not providing for income taxes on a segment basis.

Management uses segment adjusted operating measures in goal setting, as a basis for determining employee compensation and in evaluating performance on a basis comparable to that used by some securities analysts and investors. Consistent with GAAP accounting guidance for segment reporting, adjusted operating earnings is the Company’s measure of segment performance. Adjusted operating earnings should not be viewed as a substitute for GAAP pretax income. The Company believes the presentation of segment adjusted operating earnings, as the Company measures it for management purposes, enhances the understanding of its business by reflecting the underlying performance of its core operations and facilitating a more meaningful trend analysis.

Management excludes mean reversion related impacts from the Company’s adjusted operating measures. The mean reversion related impact is defined as the impact on variable annuity and VUL products for the difference between assumed and updated separate account investment performance on DAC, DSIC, unearned revenue amortization, reinsurance accrual and additional insurance benefit reserves.

Effective in the third quarter of 2021, management has excluded the impacts of block transfer reinsurance transactions from the adjusted operating measures. Prior periods have been updated to reflect this change to be consistent with the current period presentation.

Adjusted operating earnings is defined as adjusted operating net revenues less adjusted operating expenses. Adjusted operating net revenues and adjusted operating expenses exclude net realized investment gains or losses (net of unearned revenue amortization and the reinsurance accrual); the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the related DSIC and DAC amortization, unearned revenue amortization, and the reinsurance accrual; mean reversion related impacts (the impact on variable annuity and VUL products for the difference between assumed and updated separate account investment performance on DAC, DSIC, unearned revenue amortization, reinsurance accrual and additional insurance benefit reserves); 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; integration and restructuring charges; and the impact of consolidating CIEs. The market impact on non-traditional long-duration products includes changes in 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, net of related impacts on DAC and DSIC amortization. The market impact also includes certain valuation adjustments made in accordance with FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosures, including the impact on embedded derivative values of discounting projected benefits to reflect a current estimate of the Company’s life insurance subsidiary’s nonperformance spread.

The following tables summarize selected financial information by segment and reconcile segment totals to those reported on the consolidated financial statements:

		March 31, 2022		December 31, 2021
	(in millions)
Advice & Wealth Management		$	26,752	$	24,986
Asset Management		10,457		10,990
Retirement & Protection Solutions		112,881		119,469
Corporate & Other		17,435		20,534
Total assets		$	167,525	$	175,979

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

	Three Months Ended March 31,
		2022			2021
			(in millions)
Adjusted operating net revenues:
Advice & Wealth Management			$	2,042		$	1,879
Asset Management			1,017			828
Retirement & Protection Solutions			772			787
Corporate & Other			116			139
Elimination of segment revenues (1)			(352)			(379)
Total segment adjusted operating net revenues			3,595			3,254
Net realized gains (losses)			17			57
Revenue attributable to consolidated investment entities			17			34
Market impact on non-traditional long-duration products, net			26			5
Total net revenues per consolidated statements of operations			$	3,655		$	3,350

(1) Represents the elimination of intersegment revenues recognized for the three months ended March 31, 2022 and 2021 in each segment as follows: Advice & Wealth Management ($228 million and $250 million, respectively); Asset Management ($12 million and $13 million, respectively); Retirement & Protection Solutions ($112 million and $116 million, respectively); and Corporate & Other (nil and nil, respectively).

	Three Months Ended March 31,
		2022			2021
			(in millions)
Adjusted operating earnings:
Advice & Wealth Management			$	440		$	389
Asset Management			285			228
Retirement & Protection Solutions			191			183
Corporate & Other			(76)			(21)
Total segment adjusted operating earnings			840			779
Net realized gains (losses)			16			55
Net income (loss) attributable to consolidated investment entities			2			(1)
Market impact on non-traditional long-duration products, net			134			(396)
Mean reversion related impacts			(59)			56
Integration and restructuring charges			(10)			—
Pretax income per consolidated statements of operations			$	923		$	493

AMERIPRISE FINANCIAL, INC.

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

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

Overview

Ameriprise Financial is a diversified financial services company with a more than 125-year history of providing financial solutions. We are a long-standing leader in financial planning and advice with $1.3 trillion in assets under management and administration as of March 31, 2022. We offer a broad range of products and services designed to achieve individual and institutional clients’ financial objectives.

The coronavirus disease 2019 (‘‘COVID-19’’) pandemic has presented ongoing significant economic and societal disruption and market unpredictability, which has affected our business and operating environment driven by what has been a low interest rate environment and volatility and changes in the equity markets and the potential associated implications to client behavior. COVID-19 continues its ongoing impact and has been occurring in multiple waves, so there are still no reliable estimates of how long the implications from the pandemic will last, the effects current and other new variants will ultimately have, how many people are likely to be affected by it, or its impact on the overall economy. There is still significant uncertainty around the extent to which the COVID-19 pandemic will continue to impact our business, results of operations, and financial condition, which depends on current and future developments, including the ultimate scope, duration and severity of the pandemic, success of worldwide vaccination efforts, multiple mutations of COVID-19 or similar diseases, the effectiveness of our office reopenings, the additional measures that may be taken by various governmental authorities in response to the outbreak, the actions of third parties in response to the pandemic, and the possible further impacts on the global economy. Given the ongoing impact of the pandemic, financial results may not be comparable to previous years and the results presented in this report may not necessarily be indicative of future operating results. For further information regarding the impact of the COVID-19 pandemic, and any potentially material effects, see Part 1 - Item 1A “Risk Factors” of our 2021 10-K.

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.

Financial markets and macroeconomic conditions have had and will continue to have a significant impact on our operating and performance results. In addition, the business, political and regulatory environments in which we operate are subject to elevated uncertainty and substantial, frequent change. Accordingly, we expect to continue focusing on our key strategic objectives and obtaining operational and strategic leverage from our core capabilities. The success of these and other strategies may be affected by the factors discussed in Item 1A, “Risk Factors” in our 2021 10-K and other factors as discussed herein.

Equity price, credit market and interest rate fluctuations can have a significant impact on our results of operations, primarily due to the effects they have on the asset management and other asset-based fees we earn, the value of deferred acquisition costs (“DAC”) and deferred sales inducement costs (“DSIC”) assets, the values of liabilities for guaranteed benefits associated with our variable annuities and the values of derivatives held to hedge these benefits and the “spread” income generated on our fixed deferred annuities, fixed insurance, the fixed portion of variable annuities and variable insurance contracts and deposit products.

Earnings, as well as adjusted operating earnings after tax, may be impacted by the ongoing low interest rate environment. Although interest rates could rise in the future, we continue to operate within a comparatively low interest rate environment. In addition to continuing spread compression in our interest sensitive product lines, a sustained low interest rate environment may result in increases to our reserves and changes in various rate assumptions we use to amortize DAC and DSIC, which may negatively impact our adjusted operating earnings after tax. For additional discussion on our interest rate risk, see Item 3. “Quantitative and Qualitative Disclosures About Market Risk” and the information set forth in this Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Market Risk.”

On June 2, 2021, we filed an application to convert Ameriprise Bank, FSB to a state-chartered industrial bank regulated by the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation. We also filed an application to transition the FSB’s personal trust services business to a new limited purpose national trust bank regulated by the Office of the Comptroller of the Currency. If the applications are approved, the proposed changes are not expected to impact our long-term strategy for the bank and

AMERIPRISE FINANCIAL, INC.

should enable us to continue our strong lineup of banking solutions, including deposits, credit cards, mortgages and securities-based lending to our wealth management clients without interruption.

We consolidate certain variable interest entities for which we provide asset management services. These entities are defined as consolidated investment entities (“CIEs”). While the consolidation of the CIEs impacts our balance sheet and income statement, our exposure to these entities is unchanged and there is no impact to the underlying business results. For further information on CIEs, see Note 4 to our Consolidated Financial Statements. The results of operations of the CIEs are reflected in the Corporate & Other segment. On a consolidated basis, the management fees we earn for the services we provide to the CIEs and the related general and administrative expenses are eliminated and the changes in the fair value of assets and liabilities related to the CIEs, primarily syndicated loans and debt, are reflected in net investment income. We include the fees from these entities in the management and financial advice fees line within our Asset Management segment.

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

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

Our financial targets are:

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

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

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

						Per Diluted Share
	Three Months Ended March 31,					Three Months Ended March 31,
	2022		2021		2022			2021
	(in millions, except per share amounts)
Net income (loss)	$	761	$	437		$	6.55		$	3.58
Less: Net realized investment gains (losses) (1)	16		55			0.14			0.45
Add: Market impact on non-traditional long-duration products (1)	(134)		396			(1.15)			3.24
Add: Mean reversion related impacts (1)	59		(56)			0.51			(0.46)
Add: Integration/restructuring charges (1)	10		—			0.09			—
Less: Net income (loss) attributable to CIEs	2		(1)			0.02			(0.01)
Tax effect of adjustments (2)	17		(60)			0.14			(0.49)
Adjusted operating earnings	$	695	$	663		$	5.98		$	5.43
Weighted average common shares outstanding:
Basic	113.7		119.8
Diluted	116.2		122.2

(1) Pretax adjusted operating adjustments.

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

AMERIPRISE FINANCIAL, INC.

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

		Twelve Months Ended March 31,
	2022			2021
	(in millions)
Net income		$	3,084		$	(65)
Less: Adjustments (1)		328			(1,804)
Adjusted operating earnings		2,756			1,739
Total Ameriprise Financial, Inc. shareholders’ equity		5,518			6,126
Less: AOCI, net of tax		(3)			312
Total Ameriprise Financial, Inc. shareholders’ equity, excluding AOCI		5,521			5,814
Less: Equity impacts attributable to CIEs		1			1
Adjusted operating equity		$	5,520		$	5,813		Return on equity, excluding AOCI	55.9	%	(1.1)	%
---	---	---	---	---
Adjusted operating return on equity, excluding AOCI (2)	49.9	%	29.9	%

(1) Adjustments reflect the sum of after-tax net realized investment gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; mean reversion related impacts; 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%.

Critical Accounting Estimates

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

Recent Accounting Pronouncements

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

Economic Environment

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

		Three Months Ended March 31,
	2022		2021		Change
S&P 500
Daily average		4,467		3,861		16%
Period end		4,530		3,973		14%
Weighted Equity Index (“WEI”) (1)
Daily average		2,953		2,662		11%
Period end		2,979		2,725		9%

(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 financial condition and results of operations, and potentially material effects, see Part 1 - Item 1A “Risk Factors” of our 2021 10-K.

AMERIPRISE FINANCIAL, INC.

Assets Under Management and Administration

Assets under management (“AUM”) include external client assets for which we provide investment management services, such as the assets of the Columbia Threadneedle Investments funds, institutional clients and clients in our advisor platform held in wrap accounts as well as assets managed by sub-advisors selected by us. AUM also includes certain assets on our Consolidated Balance Sheets for which we provide investment management services and recognize management fees in our Asset Management segment, such as the assets of the general account and the variable product funds held in the separate accounts of our life insurance subsidiaries and CIEs.

Assets under administration (“AUA”) include assets for which we provide administrative services such as client assets invested in other companies’ products that we offer outside of our wrap accounts. These assets include those held in clients’ brokerage accounts. We generally record revenues received from administered assets as distribution fees. We do not exercise management discretion over these assets and do not earn a management fee. These assets are not reported on our Consolidated Balance Sheets. AUA also includes certain assets on our Consolidated Balance Sheets for which we do not provide investment management services and do not recognize management fees, such as investments in non-affiliated funds held in the separate accounts of our life insurance subsidiaries.

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

The following table presents detail regarding our AUM and AUA:

		March 31,					Change
	2022			2021
	(in billions)
Assets Under Management and Administration
Advice & Wealth Management AUM		$	443.5		$	396.5	$	47.0	12	%
Asset Management AUM		698.6			564.1		134.5		24
Corporate AUM		0.1			0.1		—		—
Eliminations		(42.0)			(39.6)		(2.4)		(6)
Total Assets Under Management		1,100.2			921.1		179.1		19
Total Assets Under Administration		238.9			222.9		16.0		7
Total AUM and AUA		$	1,339.1		$	1,144.0	$	195.1	17	%

Total AUM increased $179.1 billion, or 19%, to $1.1 trillion as of March 31, 2022 compared to $921.1 billion as of March 31, 2021 due to a $47.0 billion increase in Advice & Wealth Management AUM driven by wrap account net inflows and market appreciation and a $134.5 billion increase in Asset Management AUM driven by the acquisition of the BMO Global Asset Management (EMEA) business and net inflows, partially offset by retail fund distributions. See our segment results of operations discussion below for additional information on changes in our AUM.

AMERIPRISE FINANCIAL, INC.

Consolidated Results of Operations for the Three Months Ended March 31, 2022 and 2021

The following table presents our consolidated results of operations:

	Three Months Ended March 31,				Change
	2022		2021
	(in millions)
Revenues
Management and financial advice fees	$	2,459	$	2,102	$	357	17	%
Distribution fees	446		458		(12)		(3)
Net investment income	261		377		(116)		(31)
Premiums, policy and contract charges	368		347		21		6
Other revenues	123		71		52		73
Total revenues	3,657		3,355		302		9
Banking and deposit interest expense	2		5		(3)		(60)
Total net revenues	3,655		3,350		305		9
Expenses
Distribution expenses	1,297		1,175		122		10
Interest credited to fixed accounts	141		159		(18)		(11)
Benefits, claims, losses and settlement expenses	211		653		(442)		(68)
Amortization of deferred acquisition costs	96		5		91		NM
Interest and debt expense	40		42		(2)		(5)
General and administrative expense	947		823		124		15
Total expenses	2,732		2,857		(125)		(4)
Pretax income (loss)	923		493		430		87
Income tax provision	162		56		106		NM
Net income (loss)	$	761	$	437	$	324	74%
NM  Not Meaningful.

Overall

Pretax income increased $430 million, or 87%, for the three months ended March 31, 2022 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 related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual was a benefit of $134 million for the three months ended March 31, 2022 compared to an expense of $396 million for the prior year period.

•A favorable impact from higher average equity markets for the three months ended March 31, 2022 compared to the prior year period.

•A favorable impact from continued client net inflows from Advice & Wealth Management.

•A $20 million favorable impact of higher asset management net performance fees.

•The mean reversion related impact was an expense of $59 million for the three months ended March 31, 2022 compared to a benefit of $56 million for the prior year period.

•A $45 million unfavorable impact due to more normalized long term care (“LTC”) insurance claims in the current period compared to the benefit of COVID-19 related impacts in the year ago period.

Net Revenues

Management and financial advice fees increased $357 million, or 17%, for the three months ended March 31, 2022 compared to the prior year period reflecting higher average equity markets, revenue associated with the acquisition of the BMO Global Asset Management (EMEA) business, continued wrap account net inflows, and a $53 million increase in performance fees.

Distribution fees decreased $12 million, or 3%, for the three months ended March 31, 2022 compared to the prior year period due to decreased transactional activity, partially offset by higher average equity markets.

AMERIPRISE FINANCIAL, INC.

Net investment income decreased $116 million, or 31%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the following items:

•Net realized investment gains of $20 million for the three months ended March 31, 2022 compared to net realized investment gains of $69 million for the prior year period. Net realized investment gains included a $15 million gain on a strategic investment in the prior year period.

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

•A $17 million decrease in net investment income of CIEs.

•The unfavorable impact of continued low interest rates, including lower investment yields on the investment portfolio supporting the certificate products.

Premiums, policy and contract charges increased $21 million, or 6%, for the three months ended March 31, 2022 compared to the prior year primarily reflecting a favorable change in unearned revenue amortization and the reinsurance accrual offset to the market impact on IUL benefits.

Other revenues increased $52 million, or 73%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the yield on deposit receivables arising from reinsurance transactions.

Banking and deposit interest expense decreased $3 million, or 60%, for the three months ended March 31, 2022 compared to the prior year period due to lower average crediting rates on certificates and lower average certificate balances.

Expenses

Distribution expenses increased $122 million, or 10%, for the three months ended March 31, 2022 compared to the prior year period reflecting higher advisor compensation primarily due to an increase in average wrap account balances, partially offset by decreased transactional activity.

Interest credited to fixed accounts decreased $18 million, or 11%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the following items:

•A $29 million decrease in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits. The favorable impact of the nonperformance credit spread was $28 million for the three months ended March 31, 2022 compared to an unfavorable impact of $1 million for the prior year period.

•A $14 million increase in expense from other market impacts on IUL benefits, net of hedges, which was an expense of $12 million for the three months ended March 31, 2022 compared to a benefit of $2 million for the prior year period. The increase in expense was primarily due to an increase in the IUL embedded derivative in the current period, which reflected higher option costs due to a higher new money rate.

Benefits, claims, losses and settlement expenses decreased $442 million, or 68%, the three months ended March 31, 2022 compared to the prior year period primarily reflecting the following items:

•A $207 million decrease in expense primarily reflecting the impact of year-over-year changes in the unhedged nonperformance credit spread risk adjustment on variable annuity guaranteed benefits. The unfavorable impact of the nonperformance credit spread was $18 million for the three months ended March 31, 2022 compared to an unfavorable impact of $225 million for the prior year period. As the undiscounted embedded derivative liability on which the nonperformance credit spread is applied increases (decreases), the impact of the nonperformance credit spread on benefits expenses is favorable (unfavorable). Additionally, as the estimate of the nonperformance credit spread over the LIBOR swap curve tightens or widens, the embedded derivative liability will increase or decrease.

•A $339 million decrease in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks and the related DSIC amortization. This decrease was the result of a favorable $1.3 billion change in the market impact on derivatives hedging the variable annuity guaranteed benefits, partially offset by an unfavorable $950 million change in the market impact on variable annuity guaranteed living benefits reserves. The main market drivers contributing to these changes are summarized below:

•Equity market impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the three months ended March 31, 2022 compared to an expense for the prior year period.

•Interest rate impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a higher expense for the three months ended March 31, 2022 compared to the prior year period.

•Volatility impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the three months ended March 31, 2022 compared to the prior year period.

AMERIPRISE FINANCIAL, INC.

•Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and various behavioral items, were a net expense for the three months ended March 31, 2022 compared to a net benefit for the prior year period.

•The mean reversion related impact was an expense of $34 million for the three months ended March 31, 2022 compared to a benefit of $34 million for the prior year period.

•A $41 million increase in expense on LTC insurance as claims returned to more normalized levels compared to the prior year period which benefited from COVID-19 related impacts.

Amortization of DAC increased $91 million, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the following items:

•The DAC offset to the market impact on non-traditional long-duration products was an expense of $11 million for the three months ended March 31, 2022 compared to a benefit of $46 million for the prior year period.

•The mean reversion related impact was an expense of $25 million for the three months ended March 31, 2022 compared to a benefit of $22 million for the prior year period.

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

General and administrative expense increased $124 million, or 15%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the operating expenses of the acquired BMO Global Asset Management (EMEA) business, higher performance fee related compensation, and $10 million of integration related expenses, partially offset by an unfavorable change in the mark-to-market impact on share-based compensation in the prior year period.

Income Taxes

Our effective tax rate was 17.6% for the three months ended March 31, 2022 compared to 11.3% for the prior year period. The higher effective tax rate for the three months ended March 31, 2022 compared to March 31, 2021 is primarily the result of higher pretax income and a decrease in low income housing tax credits, partially offset by an increase in incentive compensation in the current period compared to the prior period. See Note 15 to our Consolidated Financial Statements for additional discussion on income taxes.

Results of Operations by Segment for the Three Months Ended March 31, 2022 and 2021

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

The following table presents summary financial information by segment:

		Three Months Ended March 31,
	2022			2021
	(in millions)
Advice & Wealth Management
Net revenues		$	2,042		$	1,879
Expenses		1,602			1,490
Adjusted operating earnings		$	440		$	389
Asset Management
Net revenues		$	1,017		$	828
Expenses		732			600
Adjusted operating earnings		$	285		$	228
Retirement & Protection Solutions
Net revenues		$	772		$	787
Expenses		581			604
Adjusted operating earnings		$	191		$	183
Corporate & Other
Net revenues		$	116		$	139
Expenses		192			160
Adjusted operating loss		$	(76)		$	(21)

AMERIPRISE FINANCIAL, INC.

Advice & Wealth Management

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

		2022		2021
	(in billions)
Beginning balance		$	464.7	$	380.0
Net flows		8.7		10.4
Market appreciation (depreciation) and other		(26.4)		9.4
Ending balance		$	447.0	$	399.8
Advisory wrap account assets ending balance (1)		$	442.1	$	395.3
Average advisory wrap account assets (2)		$	445.7	$	379.3

(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 March 31, 2022 and 2021.

Wrap account assets decreased $17.7 billion, or 4%, during the three months ended March 31, 2022 due to market depreciation of $26.4 billion, partially offset by net inflows of $8.7 billion. Average advisory wrap account assets increased $66.4 billion, or 18%, compared to the prior year period primarily reflecting net inflows, along with market appreciation.

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

	Three Months Ended March 31,				Change
	2022		2021
	(in millions)
Revenues
Management and financial advice fees	$	1,380	$	1,205	$	175	15	%
Distribution fees	529		559		(30)		(5)
Net investment income	78		64		14		22
Other revenues	57		56		1		2
Total revenues	2,044		1,884		160		8
Banking and deposit interest expense	2		5		(3)		(60)
Total net revenues	2,042		1,879		163		9
Expenses
Distribution expenses	1,232		1,135		97		9
Interest and debt expense	2		3		(1)		(33)
General and administrative expense	368		352		16		5
Total expenses	1,602		1,490		112		8
Adjusted operating earnings	$	440	$	389	$	51	13	%

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $51 million, or 13%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting higher average wrap account balances due to net inflows, market appreciation, and increased bank profitability. Pretax adjusted operating margin was 21.5% for the three months ended March 31, 2022 compared to 20.7% for the prior year period. Cash balances increased $5.3 billion to $45.7 billion contrary to normal seasonal patterns in the first quarter.

Ameriprise Bank, FSB is continuing its deposit growth trend, with cash sweep balances increasing $5.2 billion from the prior year period to $13.2 billion and brokerage client pledged asset lines of credit increasing to $520 million as of March 31, 2022.

Net Revenues

Management and financial advice fees increased $175 million, or 15%, for the three months ended March 31, 2022 compared to the prior year period primarily due to growth in average wrap account assets. Average advisory wrap account assets increased $66.4 billion, or 18%, compared to the prior year period reflecting net inflows and market appreciation.

Distribution fees decreased $30 million, or 5%, for the three months ended March 31, 2022 compared to the prior year period reflecting decreased transactional activity, partially offset by higher average equity markets.

AMERIPRISE FINANCIAL, INC.

Net investment income, which excludes net realized investment gains or losses, increased $14 million, or 22%, for the three months ended March 31, 2022 compared to the prior year period primarily due to higher average invested assets due to increased bank deposits, partially offset by lower certificate balances and the unfavorable impact of continued low interest rates, including lower investment yields on the investment portfolio supporting the certificate products.

Banking and deposit interest expense decreased $3 million, or 60%, for the three months ended March 31, 2022 compared to the prior year period primarily due to lower average crediting rates on certificates and lower average certificate balances.

Expenses

Distribution expenses increased $97 million, or 9%, for the three months ended March 31, 2022 compared to the prior year period reflecting higher asset-based advisor compensation from higher wrap account assets, partially offset by decreased transactional activity.

General and administrative expense increased $16 million, or 5%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting higher volume related expenses.

Asset Management

The following tables present the mutual fund performance of our retail Columbia Threadneedle Investments funds, including recently acquired BMO branded funds, as of March 31, 2022:

Retail Fund Rankings in Top 2 Quartiles or Above Index Benchmark - Asset Weighted(1)	1 year	3 year	5 year	10 year
Equity	28%	81%	85%	88%
Fixed Income	53%	90%	94%	91%
Asset Allocation	45%	80%	86%	91%
4- or 5-star Morningstar rated funds(2)	Overall	3 year	5 year	10 year
Number of rated funds	129	108	104	104
Percent of rated assets	69%	62%	62%	72%

(1) Retail Fund performance rankings for each fund is measured on a consistent basis against the most appropriate peer group or index. Peer Groupings are defined by either Lipper, IA, or Morningstar and based primarily on the Institutional Share Class, Net of Fees. Comparisons 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 95 Columbia funds (Institutional shares) rated, 13 received a 5-star Overall Rating and 39 received a 4-star Overall Rating. Out of 92 Threadneedle funds (highest rated share class) rated, 18 received a 5-star Overall Rating and 32 received a 4-star Overall Rating. Out of 63 BMO branded funds (highest rated share class) rated, 6 received a 5-star Overall Rating and 21 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 March 31,						Change					Three Months Ended March 31,
	2022			2021			2022			2021
		(in billions)
Equity		$	367.1		$	319.4		$	47.7		15	%		$	379.6	$	308.8	$	70.8	23	%
Fixed income		256.5			194.3			62.2			32			267.2		195.2		72.0		37
Money market		12.9			5.8			7.1			NM			11.8		5.9		5.9		NM
Alternative		40.2			22.9			17.3			76			40.1		22.7		17.4		77
Hybrid and other		21.9			21.7			0.2			1			22.5		20.9		1.6		8
Total managed assets(2)		$	698.6		$	564.1		$	134.5		24	%		$	721.2	$	553.5	$	167.7	30	%
NM  Not Meaningful.

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

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

AMERIPRISE FINANCIAL, INC.

The following table presents the changes in global managed assets:

		Three Months Ended March 31,
	2022			2021
	(in billions)
Global Retail Funds (1)
Beginning assets		$	409.4		$	323.5
Inflows		21.8			22.5
Outflows		(23.2)			(17.6)
Net VP/VIT fund flows		(1.1)			(1.0)
Net new flows (2)		(2.5)			3.9
Reinvested dividends		0.6			0.7
Net flows		(1.9)			4.6
Distributions		(0.8)			(0.9)
Market appreciation (depreciation) and other		(25.8)			13.2
Foreign currency translation (3)		(0.9)			(0.2)
Total ending assets		380.0			340.2
Global Institutional (1)
Beginning assets		344.7			223.1
Inflows (4)		12.7			7.8
Outflows (4)		(11.5)			(7.5)
Net flows (2)		1.2			0.3
Market appreciation (depreciation) and other (5)		(21.7)			0.2
Foreign currency translation (3)		(5.6)			0.3
Total ending assets		318.6			223.9
Total managed assets		$	698.6		$	564.1
Total net flows		$	(0.7)		$	4.9
Legacy insurance partners net flows (6)		$	(0.7)		$	(1.3)

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

(2) Included in the first quarter 2022 net flows are $2.5 billion of retail and $0.1 billion of institutional net flows from the US asset transfer from the BMO acquisition.

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

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

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

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

AMERIPRISE FINANCIAL, INC.

Total segment AUM decreased $55.5 billion, or 7%, during the three months ended March 31, 2022. Net outflows were $0.7 billion in the first quarter of 2022, a $5.6 billion decrease compared to the prior year period. Global retail net outflows were $1.9 billion. Global institutional net inflows were $1.2 billion and included $0.7 billion of outflows from legacy insurance partners assets.

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

	Three Months Ended March 31,				Change
	2022		2021
	(in millions)
Revenues
Management and financial advice fees	$	898	$	713	$	185	26	%
Distribution fees	111		114		(3)		(3)
Net investment income	4		1		3		NM
Other revenues	4		—		4		—
Total revenues	1,017		828		189		23
Banking and deposit interest expense	—		—		—		—
Total net revenues	1,017		828		189		23
Expenses
Distribution expenses	277		268		9		3
Amortization of deferred acquisition costs	3		3		—		—
Interest and debt expense	1		1		—		—
General and administrative expense	451		328		123		38
Total expenses	732		600		132		22
Adjusted operating earnings	$	285	$	228	$	57	25	%
NM  Not Meaningful.

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $57 million, or 25%, for the three months ended March 31, 2022 compared to the prior year period primarily due to a higher level of average AUM from the acquisition of the BMO Global Asset Management (EMEA) business, equity market appreciation and cumulative net inflows, as well as higher performance fees.

Net Revenues

Management and financial advice fees increased $185 million, or 26%, for the three months ended March 31, 2022 compared to the prior year period primarily due to the acquired BMO Global Asset Management (EMEA) business, $53 million of higher performance fees, higher average equity markets, and the cumulative impact from net inflows.

Expenses

Distribution expenses increased $9 million, or 3%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting higher average equity markets.

General and administrative expense increased $123 million, or 38%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the operating expenses of the acquired BMO Global Asset Management (EMEA) business and higher performance fee related compensation expenses.

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 March 31,					Change
	2022			2021
	(in millions)
Revenues
Management and financial advice fees		$	218		$	222	$	(4)	(2)	%
Distribution fees		112			116		(4)		(3)
Net investment income		114			126		(12)		(10)
Premiums, policy and contract charges		325			323		2		1
Other revenues		3			—		3		—
Total revenues		772			787		(15)		(2)
Banking and deposit interest expense		—			—		—		—
Total net revenues		772			787		(15)		(2)
Expenses
Distribution expenses		119			129		(10)		(8)
Interest credited to fixed accounts		96			96		—		—
Benefits, claims, losses and settlement expenses		230			234		(4)		(2)
Amortization of deferred acquisition costs		53			63		(10)		(16)
Interest and debt expense		9			10		(1)		(10)
General and administrative expense		74			72		2		3
Total expenses		581			604		(23)		(4)
Adjusted operating earnings		$	191		$	183	$	8	4	%

Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual), the market impact on non-traditional long-duration products (including variable annuity contracts and IUL contracts, net of hedges and the related DSIC and DAC amortization, unearned amortization and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $8 million, or 4%, for the three months ended March 31, 2022 compared to prior year period.

Variable annuity account balances decreased 1% to $85.8 billion as of March 31, 2022 compared to the prior year period due to net outflows of $1.9 billion, partially offset by market appreciation. Variable annuity sales decreased 27% compared to the prior year period reflecting a decrease in sales of variable annuities with living benefit guarantees. The risk profile of our in force block continues to improve, with account values with living benefit riders down to 60% as of March 31, 2022 compared to 63% a year ago. This trend is expected to continue and meaningfully shift the mix of business away from products with living benefit guarantees over time.

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

Net Revenues

Net investment income, which excludes net realized investment gains or losses, decreased $12 million, or 10%, for the three months ended March 31, 2022 compared to the prior year period primarily due to lower yields on the investment portfolio.

Expenses

Distribution expenses decreased $10 million, or 8%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting decreased variable annuity sales.

Amortization of DAC, which excludes mean reversion related impacts, the DAC offset to the market impact on variable annuity contracts and IUL contracts and the DAC offset to net realized investment gains or losses, decreased $10 million for the three months ended March 31, 2022 compared to the prior year period primarily reflecting lower than expected client exit rates.

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 March 31,				Change
	2022		2021
	(in millions)
Revenues
Net investment income	$	33	$	100	$	(67)	(67)	%
Premiums, policy and contract charges	24		24		—		—
Other revenues	59		15		44		NM
Total revenues	116		139		(23)		(17)
Banking and deposit interest expense	—		—		—		—
Total net revenues	116		139		(23)		(17)
Expenses
Distribution expenses	(1)		(2)		1		50
Interest credited to fixed accounts	61		61		—		—
Benefits, claims, losses and settlement expenses	54		13		41		NM
Amortization of deferred acquisition costs	3		4		(1)		(25)
Interest and debt expense	16		15		1		7
General and administrative expense	59		69		(10)		(14)
Total expenses	192		160		32		20
Adjusted operating loss	$	(76)	$	(21)	$	(55)	NM
NM  Not Meaningful.

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

Our Corporate & Other segment pretax adjusted operating loss excludes net realized investment gains or losses, the market impact on fixed deferred annuity contracts (net of hedges and the related DAC amortization), the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impacts, gain or loss on disposal of a business that is not considered discontinued operations, integration and restructuring charges, and the impact of consolidating CIEs. Our Corporate & Other segment pretax adjusted operating loss increased $55 million, for the three months ended March 31, 2022 compared to the prior year period.

LTC insurance had a pretax adjusted operating earnings of $1 million for the three months ended March 31, 2022 compared to pretax adjusted operating earnings of $46 million for the prior year period reflecting the return to more normalized results compared to the COVID-19 related impacts in the year ago period.

FA business had a pretax adjusted operating loss of $5 million for the three months ended March 31, 2022 compared to a pretax adjusted operating loss of $4 million. Fixed deferred annuity account balances declined 4% to $7.5 billion as of March 31, 2022 compared to the prior year period as policies continue to lapse and the discontinuance of new sales of fixed deferred annuities. During the third quarter of 2021, we closed on a transaction to reinsure RiverSource Life’s fixed deferred and immediate annuity policies.

Net Revenues

Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impacts, integration and restructuring charges, and the impact of consolidating CIEs, decreased $67 million, or 67%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting lower average invested assets due to the sale of investments to a reinsurer as a result of the fixed deferred and immediate annuity reinsurance transaction and a $15 million gain on a strategic investment in the prior year period.

Other revenues increased $44 million to $59 million for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the yield on deposit receivables arising from reinsurance transactions.

AMERIPRISE FINANCIAL, INC.

Expenses

Benefits, claims, losses and settlement expenses, which excludes DSIC offset to net realized investment gains or losses, increased $41 million, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting more normalized claims on LTC insurance, which benefited from COVID-19 related impacts in the prior year period.

General and administrative expense decreased $10 million, or 14%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the unfavorable mark-to-market impact on share-based compensation expense in the prior year period.

Market Risk

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

Our earnings from fixed insurance, the fixed portion of variable annuities and variable insurance contracts, and fixed deferred annuities are based upon the spread between rates earned on assets held and the rates at which interest is credited to accounts. We primarily invest in fixed rate securities to fund the rate credited to clients. We guarantee an interest rate to the holders of these products. Investment assets and client liabilities generally differ as it relates to basis, repricing or maturity characteristics. Rates credited to clients’ accounts generally reset at shorter intervals than the yield on the underlying investments. Therefore, in an increasing interest rate environment, higher interest rates may be reflected in crediting rates to clients sooner than in rates earned on invested assets, which could result in a reduced spread between the two rates, reduced earned income and a negative impact on pretax income. However, the current low interest rate environment is resulting in interest rates below the level of some of our liability guaranteed minimum interest rates (“GMIRs”). Hence, a modest rise in interest rates would not necessarily result in changes to all the liability credited rates while projected asset purchases would capture the full increase in interest rates. This dynamic would result in widening spreads under a modestly rising rate scenario given the current relationship between the current level of interest rates and the underlying GMIRs on the business.

As a result of the current interest rate environment, our reinvestment yields are generally lower than the current portfolio yield. We expect our portfolio income yields to continue to decline in future periods should interest rates remain comparatively low. The carrying value and weighted average yield of non-structured fixed maturity securities and commercial mortgage loans that may generate proceeds to reinvest through March 31, 2024 due to prepayment, maturity or call activity at the option of the issuer, excluding securities with a make-whole provision, were $2.5 billion and 1.9%, respectively, as of March 31, 2022. In addition, residential mortgage backed securities, which could be subject to prepayment risk if the low interest rate environment continues, totaled $11.7 billion and had a weighted average yield of 1.8% as of March 31, 2022. While these amounts represent investments that could be subject to reinvestment risk, it is also possible that these investments will be used to fund liabilities or may not be prepaid and will remain invested at their current yields. In addition to the interest rate environment, the mix of benefit payments versus product sales as well as the timing and volumes associated with such mix may impact our investment yield. Furthermore, reinvestment activities and the associated investment yield may also be impacted by corporate strategies implemented at management’s discretion. The average yield for investment purchases during the three months ended March 31, 2022 was approximately 2.4%.

The reinvestment of proceeds from maturities, calls and prepayments at rates below the current portfolio yield, which may be below the level of some liability GMIRs, will have a negative impact to future operating results. To mitigate the unfavorable impact that the low interest rate environment has on our spread income, we assess reinvestment risk in our investment portfolio and monitor this risk in accordance with our asset/liability management framework. In addition, we may reduce the crediting rates on our fixed products when warranted, subject to guaranteed minimums.

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

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

We have a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on our statutory surplus and to cover some of the residual risks not covered by other hedging activities. We assess the residual risk under

AMERIPRISE FINANCIAL, INC.

a range of scenarios in creating and executing the macro hedge program. As a means of economically hedging these risks, we may use a combination of futures, options, swaps and swaptions. Certain of the macro hedge derivatives used contain settlement provisions linked to both equity returns and interest rates; the remaining are interest rate contracts or equity contracts. The macro hedge program could result in additional earnings volatility as changes in the value of the macro hedge derivatives, which are designed to reduce statutory capital volatility, may not be closely aligned to changes in the variable annuity guarantee embedded derivatives.

To evaluate interest rate and equity price risk we perform sensitivity testing which measures the impact on pretax income from the sources listed below for a 12-month period following a hypothetical 100 basis point increase in interest rates or a hypothetical 10% decline in equity prices. The interest rate risk test assumes a sudden 100 basis point parallel shift in the yield curve, with rates then staying at those levels for the next 12 months. The equity price risk test assumes a sudden 10% drop in equity prices, with equity prices then staying at those levels for the next 12 months. In estimating the values of variable annuities, indexed annuities, stock market certificates, indexed universal life (“IUL”) insurance and the associated hedge assets, we assume no change in implied market volatility despite the 10% drop in equity prices.

The following tables present our estimate of the impact on pretax income from the above defined hypothetical market movements as of March 31, 2022:

Equity Price Decline 10%		Equity Price Exposure to Pretax Income
	Before Hedge Impact			Hedge Impact			Net Impact
		(in millions)
Asset-based management and distribution fees (1)		$	(339)		$	4		$	(335)
DAC and DSIC amortization (2)(3)		(27)			—			(27)
Variable annuities:
GMDB and GMIB (3)		(12)			—			(12)
GMWB (3)		(499)			556			57
GMAB		(27)			28			1
Structured variable annuities		397			(365)			32
DAC and DSIC amortization (4)		N/A			N/A			(12)
Total variable annuities		(141)			219			66
Macro hedge program (5)		—			119			119
Certificates		—			—			—
IUL insurance		66			(71)			(5)
Total		$	(441)		$	271		$	(182)	(6)
N/A  Not Applicable.												Interest Rate Increase 100 Basis Points		Interest Rate Exposure to Pretax Income
---	---	---	---	---	---	---	---	---	---
	Before Hedge Impact			Hedge Impact			Net Impact
		(in millions)
Asset-based management and distribution fees (1)		$	(63)		$	—		$	(63)
Variable annuities:
GMWB		1,031			(1,263)			(232)
GMAB		9			(12)			(3)
Structured variable annuities		(20)			117			97
DAC and DSIC amortization (4)		N/A			N/A			21
Total variable annuities		1,020			(1,158)			(117)
Macro hedge program (5)		—			(1)			(1)
Fixed annuities, fixed insurance and fixed portion of variable annuities and variable insurance products		53			—			53
Banking deposits		57			—			57
Brokerage client cash balances		230			—			230
Certificates		12			—			12
IUL insurance		19			2			21
Total		$	1,328		$	(1,157)		$	192
N/A  Not Applicable.

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

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

AMERIPRISE FINANCIAL, INC.

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

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

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

(6) Represents the net impact to pretax income. The estimated net impact to pretax adjusted operating income is approximately $(335) million.

The above results compare to an estimated negative net impact to pretax income of $190 million related to a 10% equity price decline and an estimated positive net impact to pretax income of $80 million related to a 100 basis point increase in interest rates as of December 31, 2021. The change in interest rate exposure as of March 31, 2022 compared to December 31, 2021 was driven by variable annuity riders, specifically GMWB, primarily due to changes in market rates.

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

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

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

Fair Value Measurements

We report certain assets and liabilities at fair value; specifically, separate account assets, derivatives, embedded derivatives and most investments and cash equivalents. Fair value assumes the exchange of assets or liabilities occurs in orderly transactions and is not the result of a forced liquidation or distressed sale. We include actual market prices, or observable inputs, in our fair value measurements to the extent available. Broker quotes are obtained when quotes from pricing services are not available. We validate prices obtained from third parties through a variety of means such as: price variance analysis, subsequent sales testing, stale price review, price comparison across pricing vendors and due diligence reviews of vendors. See Note 11 to the Consolidated Financial Statements for additional information on our fair value measurements.

Fair Value of Liabilities and Nonperformance Risk

Companies are required to measure the fair value of liabilities at the price that would be received to transfer the liability to a market participant (an exit price). Since there is not a market for our obligations of our variable annuity riders, fixed deferred indexed annuities, structured variable annuities, and IUL insurance, we consider the assumptions participants in a hypothetical market would make to reflect an exit price. As a result, we adjust the valuation of variable annuity riders, fixed deferred indexed annuities, structured annuities, and IUL insurance by updating certain contractholder assumptions, adding explicit margins to provide for risk, and adjusting the rates used to discount expected cash flows to reflect a current market estimate of our nonperformance risk. The nonperformance risk adjustment is based on observable market data adjusted to estimate the risk of our life insurance company subsidiaries not fulfilling these liabilities. Consistent with general market conditions, this estimate resulted in a spread over the LIBOR swap curve as of March 31, 2022. As our estimate of this spread widens or tightens, the liability will decrease or increase. If this nonperformance credit spread moves to a zero spread over the LIBOR swap curve, the reduction to future net income would be approximately $420 million, net of DAC, DSIC, unearned revenue amortization, the reinsurance accrual and income taxes (calculated at the statutory tax rate of 21%), based on March 31, 2022 credit spreads.

Liquidity and Capital Resources

Overview

We maintained substantial liquidity during the three months ended March 31, 2022. At March 31, 2022 and December 31, 2021, we had $6.6 billion and $7.1 billion, respectively, in cash and cash equivalents excluding CIEs and other restricted cash on a consolidated basis.

At March 31, 2022 and December 31, 2021, the parent company had $316 million and $841 million, respectively, in cash, cash equivalents, and unencumbered liquid securities. Liquid securities predominantly include U.S. government agency mortgage back securities. Additional sources of liquidity include a line of credit with an affiliate up to $729 million and an unsecured revolving committed credit facility for up to $1.0 billion that expires in June 2026. Management’s estimate of liquidity available to the parent company in a volatile and uncertain economic environment as of March 31, 2022 was $1.5 billion which includes cash, cash equivalents, unencumbered liquid securities, the line of credit with an affiliate and a portion of the committed credit facility.

AMERIPRISE FINANCIAL, INC.

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 March 31, 2022, we had no outstanding borrowings under this credit facility and had $1 million of outstanding letters of credit. Our credit facility contains various administrative, reporting, legal and financial covenants. We remain in compliance with all such covenants at March 31, 2022.

In addition, we have access to collateralized borrowings, which may include repurchase agreements and Federal Home Loan Bank (“FHLB”) advances. Our subsidiaries, RiverSource Life Insurance Company (“RiverSource Life”), and Ameriprise Bank, FSB are members of the FHLB of Des Moines, which provides access to collateralized borrowings. As of March 31, 2022 and December 31, 2021, we had $8.2 billion and $8.1 billion, respectively, under the FHLB facilities, of which $200 million was outstanding as of both March 31, 2022 and December 31, 2021, and is collateralized with commercial mortgage backed securities and residential mortgage backed securities. We believe cash flows from operating activities, available cash balances and our availability of revolver borrowings will be sufficient to fund our operating liquidity needs and stress requirements.

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

We repaid $500 million principal amount of its 3.0% senior notes at maturity on March 22, 2022. See Note 10 to our Consolidated Financial Statements for further information about our long-term debt maturities.

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

We continue to monitor and respond to the ongoing COVID-19 pandemic. Our risk management strategy is designed to provide proactive protection during stress events such as the current pandemic. We believe our process is working as intended, and our liquidity and capital resources have remained a source of balance sheet strength during the three months ended March 31, 2022.

Dividends from Subsidiaries

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

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

	Actual Capital					Regulatory Capital Requirements
	March 31, 2022		December 31, 2021		March 31, 2022			December 31, 2021
	(in millions)
RiverSource Life (1)(2)	$	3,131	$	3,419		N/A			$	502
RiverSource Life of NY (1)(2)	273		310			N/A			42
ACC (4)(5)	299		304			$	278		283
TAM UK International Holdings Ltd (6)	321		330			241			248
Ameriprise Bank, FSB (4) (7)	985		853			674			589
AFS (3)(4)	128		103			#			#
Ameriprise Captive Insurance Company (3)	38		39			13			10
Ameriprise Trust Company (3)	49		47			42			44
AEIS (3)(4)	162		155			30			29
RiverSource Distributors, Inc. (3)(4)	11		10			#			#
Columbia Management Investment Distributors, Inc. (3)(4)	19		14			#			#
Columbia Threadneedle Investments UK International Ltd. (8)	337		348			165			170

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

#  Amounts are less than $1 million.

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

AMERIPRISE FINANCIAL, INC.

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

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

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

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

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

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

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

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

During the three months ended March 31, 2022, the parent holding company received cash dividends or a return of capital from its subsidiaries of $777 million (including $300 million from RiverSource Life) and contributed cash to its subsidiaries of $129 million (including $95 million to Ameriprise Bank, FSB). During the three months ended March 31, 2021, the parent holding company received cash dividends or a return of capital from its subsidiaries of $621 million (including $250 million from RiverSource Life) and contributed cash to its subsidiaries of $34 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 were subjected to rehabilitation or insolvency proceedings, such proceedings would be located in (and governed by) Delaware laws. Delaware courts have a long tradition of respecting commercial and reinsurance affairs as well as contracts among sophisticated parties. Similar credit protections to what we have with GLIC have been tested and respected in Delaware and elsewhere in the United States, and as a result we believe our credit protections would be respected even in the unlikely event that GLIC becomes subject to rehabilitation or insolvency proceedings in Delaware. Accordingly, while no credit protections are perfect, we believe the correct way to think about the risks represented by our counterparty credit exposure to GLIC is not the full amount of the gross liability that GLIC reinsures, but a much smaller net exposure to GLIC (if any that might exist after taking into account our credit protections). Thus, management believes that our agreement and offsetting non LTC legacy arrangements with Genworth will enable RiverSource Life to recover on all net exposure in all material respects in the event of a rehabilitation or insolvency of GLIC.

Dividends Paid to Shareholders and Share Repurchases

We paid regular quarterly dividends to our shareholders totaling $133 million and $129 million for the three months ended March 31, 2022 and 2021, respectively. On April 25, 2022, we announced a quarterly dividend of $1.25 per common share. The dividend will be paid on May 20, 2022 to our shareholders of record at the close of business on May 9, 2022.

In August 2020, the Company’s Board of Directors authorized us to repurchase up to $2.5 billion of our common stock through September 30, 2022. In January 2022, the Company’s Board of Directors authorized an additional $3.0 billion for the repurchase of the Company’s common stock through March 31, 2024. As of March 31, 2022, we had $3.0 billion remaining under these share repurchase authorizations. We intend to fund share repurchases through existing working capital, future earnings and other customary financing methods. The share repurchase program does not require the purchase of any minimum number of shares, and depending on market conditions and other factors, these purchases may be commenced or suspended at any time without prior notice. Acquisitions under the share repurchase program may be made in the open market, through privately negotiated transactions or block trades or other means. During the three months ended March 31, 2022, we repurchased a total of 1.4 million shares of our common stock at an average price of $299.14 per share.

Cash Flows

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

Operating Activities

Net cash provided by operating activities increased $1.4 billion to $409 million for the three months ended March 31, 2022 compared to net cash used in operating activities of $1.0 billion for the prior year period primarily reflecting a $882 million increase in policyholder account balances, future policy benefits and claims, net, a $324 million increase in net income and a $222 million increase in cash related to brokerage deposits.

AMERIPRISE FINANCIAL, INC.

Investing Activities

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

Net cash used in investing activities increased $856 million to $1.7 billion for the three months ended March 31, 2022 compared to $809 million for the prior year period primarily reflecting a $755 million decrease in proceeds from maturities, sinking fund payments and calls of Available-for-Sale securities, a $727 million increase in cash used for purchases of Available-for-Sale securities, partially offset by a $490 million decrease in net cash flows used related to investments of consolidated investment entities.

Financing Activities

Net cash provided by financing activities increased $85 million to $518 million for the three months ended March 31, 2022 compared to $433 million for the prior year period primarily reflecting a $1.2 billion increase in banking deposits, a $399 million reduction in net cash outflows from investment certificates, partially offset by a $797 million decrease in borrowings by CIEs and a $500 million increase in repayments of long-term debt.

Forward-Looking Statements

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

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

•statements of the Company’s position, future performance and ability to pursue business strategy relative to the spread and impact of the COVID-19 pandemic and the related market, economic, client, governmental and healthcare system response;

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

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

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

•statements of assumptions underlying such statements.

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

Such factors include, but are not limited to:

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

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

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

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

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

•declines in our investment management performance;

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

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

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

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

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

•the illiquidity of our investments;

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

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

•failures or defaults by counterparties to our reinsurance arrangements;

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

AMERIPRISE FINANCIAL, INC.

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

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

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

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

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

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

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

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

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

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

• legal and regulatory actions brought against us;

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

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

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

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

•changes in and the adoption of new accounting standards.

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

Ameriprise Financial announces financial and other information to investors through the Company’s investor relations website at ir.ameriprise.com, as well as SEC filings, press releases, public conference calls and webcasts. Investors and others interested in the company are encouraged to visit the investor relations website from time to time, as information is updated and new information is posted. The website also allows users to sign up for automatic notifications in the event new materials are posted. The information found on the website is not incorporated by reference into this report or in any other report or document the Company furnishes or files with the SEC.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information set forth in Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Market Risk” in this report is incorporated herein by reference. These disclosures should be read in conjunction with the “Quantitative and Qualitative Disclosures About Market Risk” discussion included as Part II, Item 7A of our 2021 10-K filed with the SEC on February 25, 2022.

ITEM 4.  CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) designed to provide reasonable assurance that the information required to be reported in the Exchange Act filings is recorded, processed, summarized and reported within the time periods specified in and pursuant to SEC regulations, including controls and procedures designed to ensure that this information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding the required disclosure. It should be noted that, because of inherent limitations, our company’s disclosure controls and procedures, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the disclosure controls and procedures are met.

Our management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report. Based upon that evaluation, our company’s Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective at a reasonable level of assurance as of March 31, 2022.

AMERIPRISE FINANCIAL, INC.

Changes in Internal Control over Financial Reporting

There have not been any changes to our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, our company’s internal control over financial reporting.

PART II.  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

The information set forth in Note 16 to the Consolidated Financial Statements in Part I, Item 1 is incorporated herein by reference.

ITEM 1A.  RISK FACTORS

There have been no material changes in the risk factors provided in Part I, Item 1A of our 2021 10-K.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table presents the information with respect to purchases made by or on behalf of Ameriprise Financial, Inc. or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934), of our common stock during the first quarter of 2022:

Period			(a)		(b)		(c)	(d)
	Total Number<br><br>of Shares Purchased	Average Price<br><br>Paid Per Share		Total Number of Shares Purchased as part of Publicly Announced Plans or Programs (1)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1)
January 1 to January 31, 2022
Share repurchase program (1)			334,220		$	311.16	334,220	$	3,328,441,337
Employee transactions (2)			110,082		$	304.64	N/A	N/A
February 1 to February 28, 2022
Share repurchase program (1)			475,911		$	304.67	475,911	$	3,183,446,834
Employee transactions (2)			289,352		$	311.08	N/A	N/A
March 1 to March 31, 2022
Share repurchase program (1)			623,973		$	288.49	623,973	$	3,003,438,420
Employee transactions (2)			91,123		$	297.15	N/A	N/A
Totals
Share repurchase program (1)			1,434,104		$	299.14	1,434,104
Employee transactions (2)			490,557		$	307.05	N/A
			1,924,661				1,434,104

N/A  Not applicable.

(1) In August 2020, our Board of Directors authorized an expenditure of up to $2.5 billion for the repurchase of our common stock through September 30, 2022. In January 2022, our Board of Directors authorized an additional $3.0 billion for the repurchase of our common stock through March 31, 2024. 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.

(2) Includes restricted shares withheld pursuant to the terms of awards under the Company’s share-based compensation plans to offset tax withholding obligations that occur upon vesting and release of restricted shares. The value of the restricted shares withheld is the closing price of common stock of Ameriprise Financial, Inc. on the date the relevant transaction occurs. Also includes shares withheld pursuant to the net settlement of Non-Qualified Stock Option (“NQSO”) exercises to offset tax withholding obligations that occur upon exercise and to cover the strike price of the NQSO. The value of the shares withheld pursuant to the net settlement of NQSO exercises is the closing price of common stock of Ameriprise Financial, Inc. on the day prior to the date the relevant transaction occurs.

AMERIPRISE FINANCIAL, INC.

ITEM 6.  EXHIBITS

Pursuant to the rules and regulations of the Securities and Exchange Commission, we have filed certain agreements as exhibits to this Quarterly Report on Form 10-Q. These agreements may contain representations and warranties by the parties. These representations and warranties have been made solely for the benefit of the other party or parties to such agreements and (i) may have been qualified by disclosures made to such other party or parties, (ii) were made only as of the date of such agreements or such other date(s) as may be specified in such agreements and are subject to more recent developments, which may not be fully reflected in our public disclosure, (iii) may reflect the allocation of risk among the parties to such agreements and (iv) may apply materiality standards different from what may be viewed as material to investors. Accordingly, these representations and warranties may not describe our actual state of affairs at the date hereof and should not be relied upon.

The following exhibits are filed as part of this Quarterly Report on Form 10-Q. The exhibit numbers followed by an asterisk (*) indicate exhibits electronically filed herewith. All other exhibit numbers indicate exhibits previously filed and are hereby incorporated herein by reference.

Exhibit	Description
3.1	Amended and Restated Certificate of Incorporation of Ameriprise Financial, Inc. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K, File No. 1-32525, filed on May 1, 2014).
3.2	Amended and Restated Bylaws of Ameriprise Financial, Inc. (incorporated by reference to Exhibit 3.2 to the Annual Report on Form 10-K, File No. 1-32525, filed on February 24, 2021).
4.1	Form of Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Amendment No. 3 to Form 10 Registration Statement, File No. 1-32525, filed on August 19, 2005).<br><br>Other instruments defining the rights of holders of long-term debt securities of the registrant are omitted pursuant to Section (b)(4)(iii)(A) of Item 601 of Regulation S-K. The registrant agrees to furnish copies of these instruments to the SEC upon request.
10.1†*	Ameriprise Financial Long-Term Incentive Award Program Guide
31.1*	Certification of James M. Cracchiolo pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
31.2*	Certification of Walter S. Berman pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
32*	Certification of James M. Cracchiolo and Walter S. Berman pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following materials from Ameriprise Financial, Inc.’s Quarterly Report on Form 10-Q for the period ended March 31, 2022 are formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021; (ii) Consolidated Statements of Comprehensive Income for the three months ended March 31, 2022 and 2021; (iii) Consolidated Balance Sheets at March 31, 2022 and December 31, 2021; (iv) Consolidated Statements of Equity for the three months ended March 31, 2022 and 2021; (v) Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021; and (vi) Notes to the Consolidated Financial Statements.
104	The cover page from Ameriprise Financial, Inc.’s Quarterly Report on Form 10-Q for the period ended March 31, 2022 is formatted in iXBRL and contained in Exhibit 101.
* Filed electronically herewithin.
† Management contract or compensation plan or arrangement

AMERIPRISE FINANCIAL, INC.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	AMERIPRISE FINANCIAL, INC.
(Registrant)
Date:	May 2, 2022		By:	/s/ Walter S. Berman
---	---	---	---	---
		Walter S. Berman
		Executive Vice President and Chief Financial Officer
				(Principal Financial Officer)
Date:	May 2, 2022		By:	/s/ John R. Hutt
---	---	---	---	---
		John R. Hutt
				Executive Vice President / LFO – Finance
				(Principal Accounting Officer)

73

exhibit101-03312022

Ameriprise Financial, Inc. 2007 Long-Term Incentive Award Program Guide (U.S. and India) This Guide is available on Inside for awards granted in January 2007 and forward. THIS DOCUMENT IS PART OF A PROSPECTUS COVERING SECURITIES THAT HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933. Revision: March 2022

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1 Contents Long-Term Incentive Award Program ............................................................................................................................ 2 LTIA Program Overview .............................................................................................................................................. 2 Summary of the Types of Awards under the Plan ....................................................................................................... 3 Restricted Stock Awards ................................................................................................................................................ 4 Valuing RSA Grants .................................................................................................................................................... 4 Vesting ........................................................................................................................................................................ 4 Quarterly dividends ...................................................................................................................................................... 4 Treatment of RSAs upon Certain Events .................................................................................................................... 4 Restricted Stock Units ................................................................................................................................................... 4 Valuing RSU Grants .................................................................................................................................................... 5 Vesting ........................................................................................................................................................................ 5 Quarterly Dividend Equivalents ................................................................................................................................... 5 Treatment of RSUs upon Certain Events .................................................................................................................... 5 Non-Qualified Stock Options .......................................................................................................................................... 5 Valuing NQSO Grants ................................................................................................................................................. 5 Vesting ........................................................................................................................................................................ 6 Steps for Exercising NQSOs ....................................................................................................................................... 6 Treatment of NQSOs upon Certain Events ................................................................................................................. 8 Performance Stock Units (for executive officers only) ................................................................................................... 8 Performance Cash Units ................................................................................................................................................ 8 Tax Implications for LTIAs (U.S. only) ........................................................................................................................... 8 RSAs and RSUs: Income & Employment Tax Implications ......................................................................................... 9 NQSOs: Income and Employment Tax Implications ................................................................................................... 9 Multi-State Taxation Process .................................................................................................................................... 10 Section 409A of the Code .......................................................................................................................................... 10 Treatment of LTIAs upon Certain Events .................................................................................................................... 11 Part-Time Employment Status................................................................................................................................... 11 Employment Termination ........................................................................................................................................... 11 Leave of Absence...................................................................................................................................................... 12 Death ......................................................................................................................................................................... 12 Disability Termination ................................................................................................................................................. 12 Retirement ................................................................................................................................................................. 12 Transfer between Business Segments ...................................................................................................................... 13 Transfer from Field Eligible Employee to Franchise Advisor ..................................................................................... 13 Situations of Detrimental Conduct .............................................................................................................................. 13 Compensation Recovery or “Clawback” Policy (For executive officers only) ............................................................ 13 Change in Control of the Company ........................................................................................................................... 14 Payments to Certain U.S. Taxpayers upon a Change in Control of the Company .................................................... 14 Resale of Shares Received Under the Plan .............................................................................................................. 15 Major Terms and Conditions of NQSOs, RSAs and RSUs.......................................................................................... 15 Non-Qualified Stock Options ...................................................................................................................................... 15 Restricted Stock Awards and Restricted Stock Units ................................................................................................ 16 Administrative Information about this Guide ................................................................................................................ 16 About this Guide ........................................................................................................................................................ 16 About the Illustrations ................................................................................................................................................ 17 Award Confirmation Materials ................................................................................................................................... 17 Governing Award Documents ................................................................................................................................... 17 AMP Shares Available for Grant under the Plan ....................................................................................................... 17 Plan Administration ................................................................................................................................................... 18 Performance-Based Compensation ............................................................................................................................ 18 Adjustments upon Changes in Capitalization ............................................................................................................ 18 Tax Withholding ......................................................................................................................................................... 19 Assignment and Transfer .......................................................................................................................................... 19 Amendment ............................................................................................................................................................... 19 Term of the Plan ........................................................................................................................................................ 19 Resources ................................................................................................................................................................... 19 Availability of Certain Information and Incorporation of Documents by Reference .................................................... 19 Contact Information ................................................................................................................................................... 20

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2 Long-Term Incentive Award Program The Long-Term Incentive Award (“LTIA”) program is designed to align Participants’ interests with those of the shareholders of Ameriprise Financial, Inc. (the “Company”). By providing a stake in the Company’s future success, LTIAs are considered essential to our efforts to attract and retain talented employees. LTIAs are equity-based or cash-based incentive awards (i.e., non-qualified stock options, restricted stock awards, restricted stock units, performance cash units, performance stock units and other equity-based awards) issued pursuant to the Ameriprise Financial 2005 Incentive Compensation Plan, as amended and restated (the “Plan”). All LTIAs are recommended for approval by the Compensation and Benefits Committee (the “Committee”) of the Company’s Board of Directors (the “Board”) or the Committee’s duly authorized delegate. The timing and process for approval and issuance of such awards will be governed by the Ameriprise Financial Long-Term Incentive Award Policy – Grant Practices and Procedures. Once the recommended awards are approved and granted, they are then communicated to employees by their leaders, as well as by email notification. LTIA Program Overview Restricted Stock Awards (“RSAs”), Non-qualified Stock Options (“NQSOs”), Restricted Stock Unit Awards (“RSUs”), Performance Stock Units (“PSUs”) and Performance Cash Units (“PCUs”) (collectively, “Awards” or “LTIAs”) are issued pursuant to the terms of the Plan at the discretion and subject to the administration of the Committee. All Awards issued under the Plan will contain the general terms set forth in the applicable provisions of this 2007 Long- Term Incentive Award Program Guide (this “Guide”). The specific terms of an individual Award will be contained in the Shareworks online award agreement or certificate delivered to the Participant in connection with the grant of an Award. All Awards are subject to the terms and conditions of the Plan, the Guide, and the Award detail, as well as any administrative guidelines or interpretations by the Committee under the Plan, and any such guidelines or interpretations are hereby incorporated into this Guide by reference and made a part of this Guide. PSUs and PCUs will also be subject to the terms and conditions of the PSU Supplement to this Guide or the PCU Supplement to this Guide, as applicable. The Plan provides that Awards may be settled in cash and/or in shares of Company common stock (“AMP Shares”) or other property; however, the medium of settlement for an individual Award will be contained in the Award certificate. As used in this Guide, the term “shares” refers to the common shares of the Company having a par value of $.01 per share, or the shares of any other stock of any other class into which such shares may thereafter be changed. The chart on the following page summarizes the key features of the types of awards granted under the LTIA program. This Guide describes awards management expects to recommend for grant and may not cover the specific features of every award. However, this Guide is intended to cover the terms of the vast majority of Awards, and you may generally rely on it for the governance of your awards unless the Company communicates something different to you in writing. If the type of awards granted changes from what is described in this Guide, the LTIA Administration Group will provide you with detailed information regarding any changes. Detailed information about various award types, tax implications and other award features is contained in the following sections.

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3 Summary of the Types of Awards under the Plan This section summarizes general features of RSAs, NQSOs, RSUs, PSUs and PCUs. Detailed information about the various Award types is contained in sections that follow. RSA NQSO RSU PSU and PCU Intent and Form of Award A grant of AMP Shares in which the Participant’s rights in the shares are restricted and such shares are nontransferable until they vest. The opportunity to purchase (or exercise) a specific number of AMP Shares after the award vests. NQSOs, to the extent vested and subject to other Award requirements, may be exercised while continuously employed1, but in no event later than 10 years after the grant date. A contractual right to deliver AMP Shares when the Award vests. A contractual right to deliver a number of AMP Shares (for a PSU, or, in the case of a PCU, an amount of cash) based on attainment of the applicable performance conditions over the applicable performance period. Size of Grant Generally, the dollar value of the award is converted to a specific number of AMP Shares (at fair market value) on the grant date. Generally, a Black-Scholes valuation model is used to convert the dollar value of the award to a specific number NQSOs on the grant date. Generally, the dollar value of the award is converted to a specific number of AMP Shares (at fair market value) on the grant date. For PSUs, the number of AMP shares distributable is determined pursuant to your applicable Award details in the same manner as RSAs. For PCUs, the amount of cash payable at target is the dollar value of the award. Vesting Schedule2 Generally, will vest in equal installments over a three-year period, or according to such other vesting schedule specified in the Award detail. Generally, will vest in equal installments over a three-year period, or according to such other vesting schedule specified in the Award detail. Generally, will vest in equal installments over a three-year period, or according to such other vesting schedule specified in the Award detail. The performance period for a PSU or a PCU is generally three years. Awards generally “cliff vest” at the end of the performance period and become payable no later than the following March 15th, after the payout for that period has been determined. Dividends/ Dividend Equivalents Quarterly dividends, if and to the extent declared, will be paid in cash during the vesting period. An NQSO, whether vested or unvested, is not entitled to dividends or dividend equivalents. Quarterly dividend equivalents, if and to the extent declared, will be paid in cash during the vesting period. Each PSU earned will be entitled to a cash payment equal to the amount of any dividends declared and paid during the performance period and through the payment date. Any such dividend equivalent payment will vest and be paid at the same time as the underlying PSU. PCUs are not entitled to dividends or dividend equivalents. Voting Rights for Unvested AMP Shares Yes. No. No. No. Income & Employment Taxation (U.S. only) Generally, taxable upon vesting of the AMP Shares. Taxable upon exercise of the NQSO. Generally, taxable upon delivery of the AMP Shares (note: FICA taxes may be payable and withheld before an RSU vests and AMP Shares delivered). Generally, taxable upon delivery of the AMP Shares or, in the case of a PCU, cash. 1 Continuous employment with the Company or one of its subsidiaries is required through the date of exercise of the NQSO, provided that in certain situations, exercise may be permitted for a limited period following termination of employment (but in no event later than 10 years after the grant date), as set forth in this Guide under “Treatment of LTIAs upon Certain Events.” 2 Continuous employment is required through each vesting date unless an exception is set forth in this Guide under “Treatment of LTIAs upon Certain Events.”

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4 Restricted Stock Awards An RSA is a grant of AMP Shares. On the date of grant, your rights to the shares are restricted and you may not sell, assign, or otherwise transfer the shares until they vest, which is contingent upon you remaining employed with the Company or one of its subsidiaries through each vesting date. Once vested, you receive the AMP Shares free from such restrictions. Quarterly dividends, if any, are paid on your unvested AMP Shares during the vesting period. You have full voting rights for all your unvested AMP Shares. Valuing RSA Grants The value of an RSA share at vesting is equal to the Company’s closing share price as reported on the New York Stock Exchange on the vesting date, or if there is no reported closing price on the vesting date, then the closing price as reported by the New York Stock Exchange on the last previous day on which such closing price was reported. For example, if 150 restricted AMP Shares vest in January and the closing AMP Share price at vesting is $85, the pretax value of these AMP Shares would be $12,750 ($85 x 150 = $12,750). (See the “About the Illustrations” section in this Guide for an important disclosure.) Vesting RSAs generally vest in equal installments over a three-year period, starting with the first anniversary of the grant date and ending on the third anniversary of the grant date. The Award detail you receive with your RSA will include a personalized vesting schedule. Upon a vesting date, the restrictions will lapse on the number of AMP Shares specified in your Award to vest on such date. Any required tax withholding will be paid by withholding AMP Shares from the number of shares that vest on such date. The net AMP Shares that will be in your account following vesting will be the number of AMP Shares specified in your Award to vest on such date less the number of AMP Shares necessary to satisfy any tax withholding requirements. Once the restrictions have lapsed and the required tax withholdings have been satisfied, you may sell, assign, or otherwise transfer your AMP Shares at any time, subject to securities laws governing insider trading, short-swing profit rules and Company stock ownership and retention guidelines and black-out periods. You are responsible for knowing and abiding by the applicable laws and Company policies regarding your stock and stock-based awards. Quarterly dividends Cash dividends paid on AMP Shares, as declared by the Board, are paid quarterly during the vesting period. The dividend payment amount is determined each quarter and stated as a per-share amount that is multiplied by the number of unvested AMP Shares in your award. For example, if a quarterly dividend is $0.45 per share and you have 500 unvested AMP Shares, your quarterly dividend payment would equal $225 ($0.45 x 500 = $225). To change the address where your dividend check is mailed, to request a dividend check replacement or to set-up electronic payment, contact the Transfer Agent, Broadridge. Contact information can be found in the “Contact Information” section in this Guide. Treatment of RSAs upon Certain Events For information on the treatment of RSAs upon retirement, employment termination, leave of absence, etc., please see the “Treatment of LTIAs upon Certain Events” section in this Guide. Restricted Stock Units Under an RSU, AMP Shares are not issued to you on the grant date. Instead, an RSU represents the Company’s contractual obligation to issue a specified number of AMP Shares to you at the end of the vesting period applicable to your Award. During this period, you receive quarterly dividend equivalent payments that are the equivalent value of any AMP Share dividends that are declared and paid during such calendar quarter. Any such dividend equivalents will be paid to you as soon as practicable following the payment to shareholders of the related dividend, but in no event later than 75 days following such date. You do not have voting rights for shares under any unvested portion of the RSU until such shares become vested and are issued to you.

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5 Valuing RSU Grants RSUs are valued in the same manner as RSAs. The value of an RSU share at vesting is equal to the Company’s closing share price as reported on the New York Stock Exchange composite tape on the vesting date or if there is no reported closing price on the vesting date, then the closing price as reported by the New York Stock Exchange on the last previous day on which such closing price was reported. For example, if 150 restricted AMP Shares vest in January and the closing AMP Share price at vesting is $85, the pretax value of these AMP Shares would be $12,750 ($85 x 150 = $12,750). (See the “About the Illustrations” section in this Guide for an important disclosure.) Vesting RSUs generally vest in equal installments over a three-year period, starting with the first anniversary of the grant date and ending on the third anniversary of the grant date. The Award detail you receive with your RSU will include a personalized vesting schedule. Upon a vesting date, the restrictions will lapse on the number of AMP Shares specified in your Award to vest on such date. Any required tax withholding will be paid by withholding AMP Shares from the number of shares that vest on such date. The net AMP Shares that will be in your account following vesting will be the number of AMP Shares specified in your Award detail to vest on such date less the number of AMP Shares necessary to satisfy any tax withholding requirements. Once the restrictions have lapsed and the required tax withholdings have been satisfied, you may sell your AMP Shares at any time, subject to securities laws governing insider trading, short- swing profit rules and Company stock ownership and retention guidelines and black-out periods. You are responsible for knowing and abiding by the applicable laws and Company policies regarding your stock and stock-based awards. As explained in greater detail in the section in this Guide titled “RSAs and RSUs: Income & Employment Tax Implications,” please note that in some instances FICA (Social Security and Medicare) taxes may be payable before an Award vests and you receive AMP Shares. Quarterly Dividend Equivalents Unlike RSAs, RSUs are not entitled to receive payment of any AMP Share dividends, as declared by the Board, during the vesting period. However, RSUs are entitled to receive a dividend equivalent payment from the Company equal to the amount of the AMP Share dividends that are paid to shareholders during the vesting period. For example, if a quarterly dividend is $0.45 per share and you have 500 unvested AMP Shares, your quarterly dividend equivalent payment would equal $225 ($0.45 x 500 = $225). Treatment of RSUs upon Certain Events For information about how your RSUs will be treated upon certain events, such as retirement, employment termination, leave of absence, etc., please see “Treatment of LTIAs upon Certain Events.” Non-Qualified Stock Options An NQSO gives you the right to purchase a specified number of AMP Shares at the exercise price set forth in the Award, subject to continuous employment and other vesting requirements and exercise period limitations. The exercise price is equal to the closing stock price as reported on the New York Stock Exchange composite tape on the grant date. Once an NQSO becomes vested, you determine when to exercise the option (before its expiration) and how to pay for the option exercise. Unless your Award detail provides otherwise, an NQSO expires on the date that is 10 years after the date of grant, or upon your earlier termination of employment with the Company or one of its subsidiaries, provided that in certain situations, you may be permitted to exercise the NQSO for a limited period following termination of employment and prior to its award expiration date (please see the “Treatment of LTIAs upon Certain Events” section in this Guide). “Non- qualified” refers to the tax treatment of the option under the U.S. Internal Revenue Code of 1986, as amended (the “Code”). Valuing NQSO Grants NQSOs earn value if the Company’s stock price increases above the exercise price. Once an NQSO becomes vested,

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6 you have the right to pay the exercise price to exercise the option and acquire the AMP Shares. For example, assume that 500 vested NQSOs were granted at the exercise price of $50 per share and the price of an AMP Share increases to $75. If you decided to exercise the NQSO, the pre-tax gain on these options would be $12,500 (($75 - $50 = $25) x 500 = $12,500). (See the “About the Illustrations” section in this Guide for an important disclosure.) Vesting NQSOs generally become vested and available for exercise in equal installments over a three-year period, starting with the first anniversary of the grant date and ending on the third anniversary of the grant date. The Award detail you receive in connection with an NQSO grant will include a personalized vesting schedule. Steps for Exercising NQSOs (These steps are for U.S. employees; exercise steps outside the United States may differ due to local requirements.) Generally, you may exercise the vested portion of an NQSO as soon as it vests or at any subsequent time prior to its award expiration date, as long as you remain employed with the Company or one of its subsidiaries through the exercise date. It is your responsibility to track your NQSO expiration date(s), including any early expiration of your NQSO in connection with the termination of your employment, to ensure you realize any value through a timely exercise. As with any investment decision, you are strongly urged to consult with your personal financial advisor before exercising an NQSO. Follow these steps to exercise the vested portion of NQSO: 1. The execution of an NQSO exercise requires you to have a valid non-qualified Ameriprise brokerage account. If you do not have one, contact your advisor or call the Ameriprise Advisor Center at 1-877-370-3950 to set up an account. Initiating an NQSO exercise without having an AMP brokerage account can delay the ability to exercise your NQSOs. 2. Sign into your account with Shareworks to exercise your stock options. Indicate how you plan to pay for the AMP Shares you are purchasing by exercising the option and any required tax withholdings. You may pay the exercise cost (the per-share exercise price multiplied by the number of shares) and required tax withholdings using one of these payment options (in U.S. dollars): • Net Exercise: Instruct Ameriprise Financial Brokerage Services (“AFBS”), our exclusive broker, to withhold a portion of the exercised shares equal in fair market value to the exercise cost plus any required tax withholdings to the Company in lieu of paying the exercise price in cash. The number of shares withheld to cover the required tax withholding is determined using the exercise method as follows:  Exercises entered during market trading hours (9:30 am ET – 4 pm ET) will use the fair market value (FMV) price at the time the exercise is initiated; however, if the exercise is made pursuant to a limit order, then the limit price will be used for the calculation of taxes and shares withheld.  Exercises entered after 4 pm ET and before 9:30 am ET will use the last closing FMV price; however, if the exercise is made pursuant to a limit order, then the limit price will be used for the calculation of taxes and shares withheld. There is no fee to open a brokerage account with AFBS, and you will pay a reduced commission if AFBS sells shares on your behalf. Regular brokerage account maintenance fees apply. Please note that the Net Exercise method replaced the Cashless Exercise method for all NQSOs granted under the Plan on or after Feb. 6, 2012. • Cashless Exercise: Instruct AFBS to sell all exercised shares and pay the exercise cost and any required tax withholdings from the proceeds. There is no fee to open a brokerage account with AFBS, and you will pay a reduced commission when AFBS sells shares on your behalf. The Cashless Exercise method is only available for NQSOs granted under the Plan on or before Feb. 5, 2012. • Buy-and-Hold Exercise: (Cash Exercise, using cash in AFBS account): Pay the exercise cost by instructing AFBS to take funds from your brokerage cash account. If you choose to pay the exercise cost using the Buy- and-Hold Exercise, you must have the funds available in your brokerage account prior to initiating your exercise activity. You may pay any required minimum tax

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7 withholding by instructing AFBS to take funds from your brokerage cash account to pay the required minimum tax withholding or instructing AFBS to withhold and sell the appropriate number of shares (otherwise available from the exercise) to pay the required minimum tax withholding. Note: Shares cannot be sold until after tax withholding liability has been determined. Due to price fluctuation (between exercise and disposition of shares), the exact number of shares needed to cover taxes will not be known immediately upon exercise. 3. Additional Approvals, Restrictions and Reporting (For Bands 50 and above and certain other Participants only) • Obtain required pre-clearance. The Corporate Secretary’s Office will provide you with an email explaining the pre-clearance process. It is important to understand, however, that pre-clearance may not be granted, depending on the facts and circumstances. • Provide required notice. Other Band 50 and above Participants are required to provide advance notice to their Executive leader if the exercise request exceeds certain hurdles (e.g., the request would result in the exercise of more than 40% of your available AMP NQSOs within any 90-day period). Note: Regardless of whether one has received pre-clearance or provided the required notice, he or she remains legally responsible for compliance with the federal securities laws prohibiting trading in securities when aware of nonpublic information about Ameriprise or its securities that a reasonable investor would consider significant when trading in those securities. Participants who are subject to the regular quarterly blackouts on trading in Ameriprise securities, including the exercise of NQSOs, will receive emails from the Corporate Secretary informing them of the dates on which the blackout will begin and end, as well as the related policy requirements. • Black-out period. There is a quarterly black-out period when the trading window closes and remains closed for approximately four weeks, as declared, until the Company’s earnings for the preceding quarter are made public. Other black-out periods may apply as determined by the Corporate Secretary’s Office. All affected Participants will receive an email from the Corporate Secretary’s Office quarterly stating the blackout dates including a copy of the Ameriprise Securities Trading Policy. Important: If your NQSO will expire during a Company-declared black-out period, you must take action to exercise the NQSO prior to the start of the black-out period. You will be solely responsible for any loss if you fail to exercise the NQSO before such black-out period. During the black-out period, you can no longer exercise the NQSO absent a hardship exception, which is rarely granted, and the NQSO will be cancelled on the expiration date. If you have a limit order exercise set up in Shareworks it will automatically get canceled during the black-out period. • (For Bands 70 and above only) Affirm stockownership requirements are met or requirements understood if not yet met. The Company has implemented stock ownership guidelines for executives. These guidelines have been communicated to affected executives. All Band 70 and above Participants will receive a stock ownership summary statement not less frequently than annually. • (For executive officers only) Participants who are executive officers of the Company also need to be aware that all of their acquisitions and dispositions of AMP Shares, including AMP Shares and similar rights under the Plan, the Ameriprise Financial 401(k) Plan, and all other stock- based compensation plans maintained by the Company or its subsidiaries, may be subject to the reporting requirements and short-swing trading restrictions under Section 16 of the Securities Exchange Act of 1934. Participants who are executive officers of the Company should consult with their personal financial or legal advisor prior to selling and/or buying AMP Shares. The provisions and procedures described above are subject to change.

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8 Illustration of NQSO Exercise Methods* (For U.S. purposes only) The illustration shows three ways to exercise an NQSO. In this example, assume a U.S. employee chooses to exercise 1,000 NQSO shares with an exercise price of $30 per share. Assume the market price preceding the exercise date is $50 per share. Exercise Method Net Exercise Cashless Exercise Buy-and-Hold A Market value of exercised AMP Shares at $50 ($50 per share x 1,000 shares) $50,000 B Exercise cost paid ($30 per share x 1,000 shares) $30,000 600 shares will be withheld to pay the exercise cost (i.e., 600 shares x $50 per share) All 1,000 shares will be sold in the open market. $30,000 of the sale proceeds will be paid to the Company to pay the exercise cost In order to pay the exercise cost ($30,000), a Participant must have the necessary funds in his or her AFBS account prior to initiating an online exercise. C Pre-Tax Gain (A – B) $20,000 D Minimum U.S. tax withholding paid (C x 40% assumed tax) $8,000 $8,000 of the sale proceeds will be paid to the The Participant will instruct AFBS either to take $8,000 from his or 160 shares will be withheld to cover the required tax withholdings (160 x $50 per share) Company to cover the required tax withholdings her brokerage account, or to withhold 160 shares to cover the required tax withholdings E Incremental value after exercise cost and tax withholding (A – B – D) $12,000 F Incremental share ownership (or net proceeds) from exercise 240 shares with a value of $12,000 $12,000 in cash Assuming you withhold shares to cover the required tax (1,000 - 600 for withholdings, 840 shares (1,000 - exercise cost -160 for 160 shares withheld for taxes) required tax withholdings) Minus any applicable broker commissions. * See “About the Illustrations” for an important disclosure. Treatment of NQSOs upon Certain Events To find out how your NQSOs will be treated upon retirement, employment termination, retirement, leave of absence, etc., please see the “Treatment of LTIAs upon Certain Events” section in this Guide. Performance Stock Units (for executive officers only) PSUs are subject to the terms of the PSU Supplement to this Guide and your PSU Award certificate. Please refer to the separate PSU Supplement to this Guide that was provided to you and your PSU Award for details and provisions pertaining to these Awards. Performance Cash Units PCUs are subject to the terms of the PCU Supplement to this Guide and your PCU Award certificate. Please refer to the separate PCU Supplement to this Guide on Inside and your PCU Award for details and provisions pertaining to these Awards. Tax Implications for LTIAs (U.S. only) The following is a summary description of the United States federal income and employment tax consequences generally arising with respect to RSAs, NQSOs and RSUs issued under the Plan. For U.S. federal income tax consequences of PSUs and PCUs, please refer to the PSU Supplement to this Guide or PCU Supplement to this Guide, as applicable.

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9 There may also be state and local taxes applicable to these awards. This summary is not intended to be a complete description of all possible tax consequences of LTIAs issued under the Plan, and you should be aware that different tax treatments may apply outside of the United States depending upon your country of residence and/or citizenship. RSAs and RSUs: Income & Employment Tax Implications The tax rules that apply to your RSA or RSU award vary based on your tax jurisdiction. Below is a summary of the general U.S. federal income tax implications for U.S. taxpayers. The Company is not providing advice to you on the tax treatment of any LTIA. You are strongly urged to consult with your personal tax advisor on the applicable tax implications of RSA or RSU awards and selling acquired AMP Shares considering your individual circumstances. For employees subject to U.S. federal income tax, there are no federal income tax consequences when an RSA or RSU award is granted. When the restricted period expires and RSA shares vest (i.e., the RSA shares become transferable or no longer subject to a substantial risk of forfeiture, whichever occurs earlier) or when RSU shares are delivered to you, you receive ordinary compensation income based on the market value of an AMP Share on the day of vesting or delivery, as applicable. Your Form W-2 wage and earnings statement will indicate that you had ordinary compensation income equal to the market value of your vested AMP Shares. Income resulting from the vesting of RSA shares or the delivery of RSU shares is subject to statutory withholding for U.S. federal income tax and FICA taxes (Social Security and Medicare), plus any applicable statutory state and local withholding. (NOTE: The actual income tax you owe will be based on your individual circumstances and may be more or less than the income tax withheld.) The net AMP Shares deposited into your account will be the number of AMP Shares specified in your RSA or RSU award less the necessary number of AMP Shares needed to satisfy any tax withholding requirements. Please note that in some instances FICA taxes may be payable before an Award vests and you receive AMP Shares. For example, if you become eligible to retire during the vesting period for an RSU, generally, the RSU will be taxable for FICA purposes on the date that you become eligible to retire and not on the later vesting date or the date that you actually retire. In this case, only income taxes would apply at vesting or delivery, as applicable, of the AMP Shares. If you later sell AMP Shares acquired from the vesting of RSA shares or the delivery of RSU shares, you will realize a short-term or long-term capital gain (or loss) on the spread between the market value on the date of vesting or delivery (your cost basis) and the net proceeds you receive when you sell the AMP Shares. If you realize a gain after satisfying a minimum holding period (currently greater than one year) and are in a net capital gain position under applicable U.S. tax rules, you may be able to pay tax on the gain based on long-term capital gains tax rates. These rates are generally lower than ordinary income and short-term capital gains tax rates. If you realize a loss, you may be able to use that loss to offset any capital gains you may otherwise have. Any loss in excess of capital gains may, to a limited extent, be used to offset ordinary income, as permitted under applicable U.S. tax rules. During the vesting period, any dividends or dividend equivalents paid on unvested RSA or RSU shares will be paid through the transfer agent and reflected in the earnings column under “R Stock Div” on your paycheck. Dividends or dividend equivalents paid on these shares are also considered ordinary income and are subject to the taxes described above. This ordinary income will appear on your Form W-2 wage and tax statement. In advance of an RSA or RSU vesting event, you will receive a notification of this pending vesting from the Ameriprise LTIA Administration Group. This notification will provide you with important information and instructions in advance of the vesting date. Details of your RSA or RSU vesting event, including vesting date, market value of your vested AMP Shares, stock price used to calculate the fair market value, number of shares withheld to satisfy your tax obligation, breakdown of the taxes withheld, and net shares delivered to you are available via Shareworks. You will also receive an email notification regarding the quarterly dividend payment from the Ameriprise LTIA Administration team prior to the payment date. NQSOs: Income and Employment Tax Implications The tax implications that apply when you exercise your NQSOs vary based on your tax jurisdiction. Below is a summary of the general U.S. federal income and employment tax implications for holders of NQSOs who are U.S. taxpayers. The Company is not providing advice to you on the tax treatment of any LTIA, including the exercise of an NQSO. You are strongly urged to consult with your personal tax advisor on the applicable tax implications of NQSOs and selling acquired AMP Shares considering your individual circumstances. For employees subject to U.S. federal income tax, in the year that you exercise an NQSO, your Form W-2 wage and tax statement will indicate that you had ordinary compensation income equal to the difference between the per-share exercise

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10 price and the market value of an AMP Share on the day of the exercise multiplied by the number of shares exercised on such date. Income resulting from an NQSO exercise is subject to statutory withholding for U.S. federal income tax and FICA taxes (Social Security and Medicare), plus any applicable statutory state and local withholding. (NOTE: The actual income tax you owe will be based on your individual circumstances and may be more or less than the income tax withheld.) How you pay any required tax withholdings is determined based on which of the payment options you use to exercise your NQSO. Please refer to the sections in this Guide titled “Illustration of NQSO Exercise Methods” and “Steps for Exercising NQSOs” for additional information on the methods for paying required tax withholdings. If you later sell AMP Shares acquired from an NQSO exercise, you will realize a short-term or long-term capital gain (or loss) on the spread between the market value on the date of exercise (your cost basis) and the net proceeds you receive when you sell the AMP Shares. If you realize a gain after satisfying a minimum holding period (currently greater than one year) and are in a net capital gain position under applicable U.S. tax rules, you may be able to pay tax on the gain based on long-term capital gains tax rates. These rates are generally lower than ordinary income and short-term capital gains tax rates. If you realize a loss, you may be able to use that loss to offset any capital gains you may otherwise have and any loss in excess of capital gains may, to a limited extent, be used to offset ordinary income, to the extent permitted under applicable U.S. tax rules. Multi-State Taxation Process If you work in multiple states or have transferred between states during your work tenure and awards have been granted during those years under the LTIA Program, a state wage adjustment may be done to properly allocate your earnings. Some individual states require a “look-back” allocation for various types of income, including the exercising of non-qualified stock options, vesting of restricted stock awards including RSAs and RSUs, as well as some other compensation distributions not granted under the LTIA Program. Each year, the company engages the professional services of EY (Ernst & Young) to assist with the recalculation of the appropriate state wages for the various earnings. A year-end adjustment is then made so that the appropriate state allocation amount is reported correctly on your Form W-2, based on individual state rules for allocating these various types of compensation items. If you are affected by the multi-state taxation process, you will receive a report in early February each year for the prior year’s activity from HR Services to support the final state allocations reported on your Form W-2. Please Note: If you are affected by the multi-state taxation process, the state tax withholding amounts recorded in Shareworks are a record of the taxes withheld for NQSO exercises and/or RSA/RSU vesting events based upon the withholding rates as recorded in Payroll at the time the activity took place. Please consult your tax professional regarding the effect on your personal state tax return(s). Section 409A of the Code It is intended that all Awards under the Plan either comply with or are exempt from the requirements of Section 409A to prevent the inclusion in gross income of any benefits accrued thereunder in a taxable year prior to the taxable year or years in which such amount would otherwise be distributed or made available to the Participant. All Awards under the Plan shall be administered and interpreted in a manner that is consistent with such intention and the Company’s Policy Regarding Section 409A Compliance. Notwithstanding any other provision of this Guide to the contrary, to the extent that an Award constitutes nonqualified deferred compensation to which Section 409A of the Code applies: (1) payments under such Award shall be made at a time and in a manner that satisfies the requirements of Section 409A of the Code and guidance of general applicability issued thereunder, including the provisions of Section 409A(a)(2)(B) of the Code to the extent distributions to any employee are required to be delayed six months; (2) references to “termination of employment” and similar terms mean the date that the Participant first incurs a “separation from service” within the meaning of Section 409A of the Code; and (3) payment shall be made as soon as administratively practicable following the permissible payment event, but in no event later than the end of the year in which the permissible payment event occurs, or, if later, by the 15th day of the third month following the date of the permissible payment event (and the Participant will not be permitted, either directly or indirectly, to designate the year of payment). If any payment that would otherwise be made under an Award is required to be delayed by reason of this section, such payment shall be made at the earliest date permitted by Section 409A of the Code. The amount of any delayed payment shall be the amount that would have been paid prior to the delay and shall be paid without interest.

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11 Treatment of LTIAs upon Certain Events Existing policies regarding the treatment of outstanding RSAs, NQSOs and RSUs under certain circumstances are described below. For the treatment of outstanding PSUs and PCUs, please refer to the PSU Supplement to this Guide or PCU Supplement to this Guide, as applicable. The Committee may amend the following policies for any or all outstanding and future LTIAs. For specific information about the treatment of your LTIAs, please see the applicable section of this Guide that describes the following specific events: • Part-time employment status • Employment termination • Rehire • Leave of absence • Death • Disability termination • Retirement • Transfer between business segments • Transfer from field eligible employee to franchise advisor • Situations of Detrimental Conduct (Band 50 and above) • Compensation Recovery or “Clawback” Policy (For executive officers only) • Change in Control of the Company Part-Time Employment Status Outstanding LTIAs continue to vest while you are on part-time status, subject to the Company’s right to adjust or terminate any outstanding LTIAs, based on its determination of a significant change in your duties and responsibilities. Employment Termination This section pertains to employment terminations other than retirement, death, or disability (which are separately described below). Voluntary Termination: If you terminate your employment with the Company for any reason other than death, disability, or retirement, your unvested LTIAs will be forfeited on your last day of employment. There are no exceptions to this rule. Any vested and exercisable NQSOs that you do not exercise within 90 days after your last day of employment (and before the award expiration date, if earlier) will expire and be canceled. Involuntary Termination Not Eligible for Severance Under Company Plan: Except as indicated below, if your employment is terminated for any reason other than death, disability or retirement or in connection with a Change in Control (which is separately described below) and you are not entitled to receive benefits under a Company severance plan(as defined by the Company), your outstanding LTIAs, including any exercisable NQSO shares that have not been exercised, will expire and be canceled on your last day of employment (or the award expiration date, if earlier). For the avoidance of doubt, your vested NQSOs will be canceled on your last day of employment and you will not have 90 days after your last day of employment during which to exercise your vested NQSOs. Terminations in Connection with Certain Company Actions: If your employment is terminated as a result of certain Company actions, such as the divestiture of a business unit, and you are not entitled to receive benefits under a Company severance plan (as defined by the Company), your unvested NQSOs, RSAs and RSUs will be canceled on the earlier of the award expiration date or your last day of employment. You will have 90 days from your last day of employment (or until the award expiration date, if earlier) to exercise any vested and exercisable NQSO shares. Your vested NQSOs will expire and be canceled upon the earlier of the end of the 90-day period following your termination and award expiration date. Involuntary Termination Eligible for Severance Under Company Plan: If your employment is terminated and you receive benefits under a Company severance plan (as defined by the Company) in the form of payments over a specified severance period, your unvested NQSOs, RSAs and RSUs will be canceled on the earlier of the award expiration date or last day of your severance period. You will have 90 days from the last day of your severance period (or until the award expiration date, if earlier) to exercise any vested and exercisable NQSOs. However, if you begin a new full-time position outside the Company (other than self- employment) during the severance period, your outstanding LTIAs will be canceled upon commencement of such employment, regardless of the continuation of severance payments.

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12 If your employment is terminated and you receive benefits under a Company severance plan (as defined by the Company) in the form of a lump-sum payment, your outstanding unvested NQSOs, RSAs and RSUs will be canceled as of your last day of employment. You will have 90 days from your last day of employment (or until the award expiration date, if earlier) to exercise any vested and exercisable NQSOs. Your vested NQSOs will expire and be canceled upon the earliest of the end of the 90-day period following your termination, the date that you commence a new full-time position outside the Company (other than self-employment) and the award expiration date. Rehire: Please note that in the event you terminate your employment with the Company, or your employment is terminated by the Company and any of your outstanding LTIAs are canceled and/or forfeited, and you are subsequently rehired by the Company, any LTIAs that were canceled and or forfeited at termination will not be reinstated upon rehire. Leave of Absence Outstanding LTIAs continue to vest when you are on a leave of absence (as determined by the applicable Company policies) subject to the Company’s right to adjust or terminate any outstanding LTIAs, based on its discretion of a significant change in your duties and responsibilities and/or related employment. Death The following chart shows how RSAs, RSUs and NQSOs are treated if your employment with the Company terminates due to your death. Award Type Provisions RSA and RSU Outstanding RSAs and RSUs become 100% vested and are paid as soon as administratively practicable following the date of death. NQSO Outstanding NQSOs at death become 100% exercisable. NQSOs are exercisable by the estate for up to 12 months after the date of death or the remaining term of the NQSO, whichever is earlier. In the event of your death, shares for all RSAs and RSUs that vest will automatically be issued to your estate. Because NQSO Awards cannot be transferred, the Executor/Executrix of your estate must open an Ameriprise Financial estate brokerage account to exercise any NQSOs. The estate is then responsible for distributing any funds or shares according to the laws of descent and distribution. Disability Termination The following chart shows how your RSAs, RSUs and NQSOs are treated if your employment with the Company terminates due to a qualifying disability (as defined by the Company). Award Type Provisions RSA and RSU Outstanding RSAs and RSUs become 100% vested and are paid as soon as administratively practicable following your termination of employment due to disability. NQSO Outstanding NQSOs become 100% exercisable. NQSOs are exercisable for up to 12 months after termination of employment due to disability or the remaining term of the NQSO, whichever is earlier. Retirement The following chart shows how RSAs, RSUs and NQSOs are treated upon “Retirement.” The applicable definition of Retirement for all LTIAs granted to U.S. or India Participants is attainment of age 55 with at least 10 years of applicable service at the point of termination, regardless of any pension plan or other definitions of retirement. Award Type Provisions RSA and RSU Grants awarded in the calendar year you retire are forfeited. All other awards remain outstanding and continue to vest and will be paid upon the otherwise applicable vesting date under your Award certificate.

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13 NQSO Grants awarded in the calendar year you retire are forfeited. All other awards remain outstanding and continue to vest. NQSOs are exercisable for up to five years after your retirement or the remaining term of the NQSO, whichever is earlier. Your NQSOs expire and are forfeited upon the earlier of the end of the five-year post-retirement period or the applicable expiration date. Transfer between Business Segments Outstanding LTIAs continue to vest when you transfer from one business segment to another, subject to the Company’s right to adjust or terminate any outstanding LTIAs, based on its discretion of a significant change in your duties and responsibilities and/or related employment. Transfer from Field Eligible Employee to Franchise Advisor Certain provisions for LTIA continuation apply to awards held by employees (limited to those employees in eligible field sales leadership roles) who transition to franchise advisor without a break in service. The applicable provisions are available on Inside, and such provisions are incorporated into, and part of the terms and conditions of, Awards under the Plan. Situations of Detrimental Conduct (Bands 50 and above) To protect the interests of the Company and all employees, the Company has implemented Detrimental Conduct Provisions, affecting Plan Participants in Bands 50 and above. These provisions support the multi-year performance objectives of LTIAs, and such provisions are incorporated into, and part of the terms and conditions of, Awards under the Plan. Detrimental Conduct Provisions specify how LTIAs and LTIA payments will be handled in the event a Band 50 or above employee joins a defined competitor (“Competition”), leaves and solicits business customers, solicits or hires Ameriprise Financial employees, discloses confidential information or trade secrets, denigrates the Company or Company employees or otherwise engages in conduct that is against the Company’s interests during certain time periods, in each case, as defined by the Company (each, a “Restricted Activity”). For Bands 50 and 60 Participants: Competition during employment or the six-month period after termination of employment or engaging in any Restricted Activity during the twelve-month period after termination of employment results in the cancellation of all outstanding Awards and repayment of any gain realized upon the exercise of NQSOs (as of the exercise date), any payments made or shares delivered under PSUs or PCUs and any shares delivered under RSAs and RSUs, in each case, during the twelve months prior to, and the 90 days following, your termination of employment. For Bands 70 and above Participants: Competition during employment or the twelve-month period after termination of employment or engaging in any Restricted Activity during the twelve-month period after termination of employment results in the cancellation of all outstanding Awards and repayment of any gain realized upon the exercise of NQSOs (as of the exercise date), any payments made or shares delivered under PSUs or PCUs and any shares delivered under RSAs and RSUs, in each case, during the two years prior to, and the 90 days following, your termination of employment. Please note: This is a summary of the Detrimental Conduct Provisions that apply to LTIAs generally. Please review the Consent to the Application of Forfeiture and Detrimental Conduct Provisions to Long-Term Incentive Awards and/or any other restrictive covenant agreements between you and the Company or any of its subsidiaries for the specific detrimental conduct provisions and/or restrictive covenants that apply to your Awards. Compensation Recovery or “Clawback” Policy (For executive officers only) The Committee approved a compensation recovery or “clawback” policy (the “Clawback Policy”) that applies to all Awards granted to executive officers, including the Company’s Executive Leadership Team, on or after January 1, 2011. Under the Clawback Policy, if you engage in intentional misconduct that causes or substantially causes a material restatement of the Company’s financial reports, and the restated financial results would have resulted in a lesser number of AMP Shares or a lesser amount of cash being granted to you under an Award, or a lesser number of AMP Shares or a lesser amount

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14 of cash being paid or delivered to you, in each case, within the 12-month period following the issuance of such inaccurate financial statement, then the Committee, in its sole discretion, may require you to forfeit all or a portion of your outstanding Awards or to repay all or a portion of the gains that you realized under your Awards during such period. In addition, effective for Awards made on or after January 1, 2020, if you are found liable for having engaged in an intentional and material violation of law that results in significant reputational harm or financial loss to the Company, the Committee, in its sole discretion, has the right to require you to forfeit all or a portion of your outstanding Awards. The Committee may amend the Clawback Policy from time to time as it determines necessary or advisable, and such amended policy will apply to your Awards. Change in Control of the Company The Plan’s provisions regarding a Change in Control of the Company (a “CIC”) have been designed to preserve earned or anticipated compensation and benefits if a CIC were to occur. The goal of the Plan’s CIC provisions is to help you maintain your focus on your work during the uncertainty that accompanies a potential CIC. Generally, as the term is used in this Guide, a CIC includes the following: 1. A third party acquires 25% or more of the Company’s common shares or voting securities. 2. A majority of the Board is replaced. 3. The consummation of certain mergers, reorganizations, consolidations, and sales of assets. 4. The consummation of a complete liquidation or dissolution of the Company. If a merger or other business combination transaction between the Company and another party occurs, a CIC will occur if any of the following conditions are present: • Parties who were Ameriprise Financial shareholders before the transaction own 50% or less of the voting securities of the new company resulting from the business combination, or their ownership is not substantially in the same proportions as before the transaction. • An unaffiliated party ends up owning 25% or more of the voting securities of the new company (other than a party who owns 25% or more before the transaction). • A majority of the Board of the new company is made up of individuals who were not Ameriprise Financial Board members at the time the deal was signed or approved. In the event of a CIC, outstanding RSAs, RSUs and NQSOs issued on or before December 31, 2012, would vest immediately if those Awards are not continued, assumed, or replaced in connection with the Change in Control. The vesting of RSAs, RSUs and NQSO awards granted on or after January 1, 2013, will accelerate only upon the occurrence of both a CIC and your termination of employment in a manner that entitles you to severance under the applicable severance plan within two years following the CIC. For the treatment of outstanding PSUs and PCUs, please refer to the PSU Supplement to this Guide or PCU Supplement to this Guide, as applicable. Change in Control situations are complex and involve a variety of possible circumstances. In the event of a CIC, the Company will provide detailed information to you about any compensation and benefits programs that may have special CIC provisions. Payments to Certain U.S. Taxpayers upon a Change in Control of the Company (This section applies to U.S. taxpayers only. This material is highly complex. In the event of a CIC, the Company will provide detailed information to you.) In summary, Sections 280G and 4999 of the Code impose a 20 percent excise tax (in addition to regular income and employment taxes) on certain compensatory payments (referred to as “excess parachute payments”) to certain individuals (referred to as “disqualified individuals”) that are made in connection with a change in ownership or control of a corporation. Generally, disqualified individuals include individual shareholders who own more than one percent of the fair market value of the stock of the Company, the top 50 most highly compensated officers of the Company and its subsidiaries and the top 250 most highly compensated employees or independent contractors of the Company and its subsidiaries. The actual list of disqualified individuals can only be determined based on information available at the time of a CIC, based on applicable IRS guidance. In the event of a CIC, a disqualified individual may be liable for the 20 percent excise tax on a portion of his or her LTIAs and other compensation and benefits if the value of such compensation and benefits constitute excess parachute payments. The determination of whether all or a portion of the value of a payment or a benefit is an excess parachute

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15 payment is highly complex and can only be determined based on information available at the time of a CIC, based on applicable IRS guidance. In the event of a CIC, if the Company determines that you are a disqualified individual and that you will receive excess parachute payments, then the Company will perform a “best net” calculation to determine whether you receive a better economic result by continuing to be entitled to all of the compensation and benefits and by paying the excise tax yourself or by having your entitlement to accelerated vesting and/or payment limited to the minimum extent necessary to avoid the excise tax. The Company will determine, in its sole discretion, which approach is more favorable to you and will apply it. You will not be eligible for additional payments to offset the impact of any excise tax. If the limit is applied, LTIAs and value not accelerated for disqualified individuals will continue to be governed by applicable award documents and paid out as applicable. Resale of Shares Received Under the Plan The U.S. securities laws impose restrictions on the resale of AMP Shares by individuals who are “affiliates” of the Company. Affiliates may resell their AMP Shares by complying with Rule 144 under the Securities Act of 1933, as amended (the “Securities Act”) or by registering their AMP Shares for sale under the Securities Act. These restrictions do not apply to individuals who are not affiliates of the Company. Major Terms and Conditions of NQSOs, RSAs and RSUs The terms and provisions of LTIAs granted on or after Jan. 1, 2007, are different than the terms and conditions of LTIAs granted prior to January 1, 2007. The terms and conditions of the prior LTIA Guide will continue to apply to all awards granted prior to Jan. 1, 2007. Non-Qualified Stock Options The following table summarizes the terms and conditions of NQSOs. Keep in mind this is only a summary, and the actual Plan document, Program Guide and Award details will govern. NQSO Awards Voluntary Termination and Involuntary Termination Eligible for Severance -- Unvested Forfeited -- Exercise Period for Vested 90 days after termination or remaining term of grant, whichever is earlier Involuntary Termination Not Eligible for Severance (except for Terminations in Connection with Certain Company Actions; see applicable section in Guide) -- Unvested Forfeited -- Exercise Period for Vested 0 days after termination Death & Disability -- Unvested Vesting accelerated -- Exercise Period for Vested Up to 12 months after death or disability or remaining term of grant, whichever is earlier Retirement -- Unvested (Age 55+ and 10 years of service) Grants awarded in calendar year of retirement are forfeited. All other grants remain outstanding and continue to vest -- Exercise Period for Vested Up to five years or remaining term of grant, whichever is earlier Vesting Generally, will vest in equal installments over a three-year period, or according to such other vesting schedule specified in the Award detail.

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16 Detrimental Conduct Provisions (Bands 50 and Above Only) See your Detrimental Conduct Agreement and the Competitor List posted on Inside Clawback Policy – Executive Officers, including Executive Leadership Team, only A compensation recovery or “clawback” policy applies to all Awards granted to executive officers on or after January 1, 2011. Transfer to Franchise Advisor (Eligible Field employees Only) Please refer to the Treatment of Long-Term Incentive Awards for Employees Transferring to Ameriprise Financial Franchise Advisor Status found on Inside for most recent information Restricted Stock Awards and Restricted Stock Units The following table summarizes the terms and conditions of RSAs and RSUs. Keep in mind this is only a summary, and the actual Plan document, Program Guide and Award details will govern. RSAs and RSUs Awards Voluntary Termination and Involuntary Termination Eligible for Severance – -- Unvested Forfeited Involuntary Termination Not Eligible for Severance (except for Terminations in Connection with Certain Business Dispositions; see applicable section in Guide) -- Unvested Forfeited Death & Disability -- Unvested Vesting and distribution of shares accelerated Retirement -- Unvested (Age 55+ and 10 years of service) • RSAs and RSUs awarded in calendar year of retirement are forfeited • All other RSAs and RSUs remain outstanding and continue to vest and shares will be distributed at the otherwise applicable vesting date Vesting Generally, will vest in equal installments over a three-year period, or according to such other vesting schedule specified in the Award detail. Detrimental Conduct Provisions (Bands 50 and Above Only) See your Detrimental Conduct Agreement and the Competitor List posted on Inside Clawback Policy – Executive Officers, including Executive Leadership Team, only A compensation recovery or “clawback” policy applies to all Awards granted to executive officers on or after January 1, 2011 Transfer to Franchise Advisor (Eligible Field employees Only) Please refer to the Treatment of Long-Term Incentive Awards for Employees Transferring to Ameriprise Financial Franchise Advisor Status found on Inside for most recent information Administrative Information about this Guide About this Guide This Guide sets forth the terms, conditions and features of Awards granted pursuant to the Plan. In the event of a conflict or inconsistency between this Guide and the Plan, the Plan provisions will govern. The general nature of the Plan and its

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17 terms and conditions are described here, but the information contained in this Guide is for general guidance only and is not intended to be a complete description of the Plan. The LTIA program is designed for eligible employees of the Company, and any of its subsidiaries participating in the Plan, as determined by the Committee. Awards are granted at the discretion of the Committee, or, to the extent permitted by the Plan, its delegate, and are subject to local market regulations and legislation, which could change at any time. Also note that while the tax laws that apply to Participants are based on each employee’s tax jurisdiction, and the tax information provided in this Guide is for U.S. purposes only. The Company strongly urges all employees to consult their personal tax advisor with any questions or issues regarding their Awards or their participation in the Plan. The Board, and to the extent authority has been delegated to the Committee, the Committee, may, from time to time, alter, amend, interpret, suspend or terminate the Plan and applicable Plan documents as it shall deem advisable, without the prior consent or notice of employees (including, but not limited to, alignment with legislative or regulatory developments) subject to the terms of the Plan document, including the rules and regulations of the principal securities market on which AMP Shares are traded. This Guide does not constitute a contract of employment between the Company and any individual or an obligation by the Company to maintain any particular compensation or benefit plan, program, practice or policy. This Guide does not replace or change an existing contract of employment between the Company and any individual. The Company has taken steps to ensure the accuracy of this Guide; however, it reserves the right to issue corrected information in the event of an error. About the Illustrations All Award illustrations and corresponding values shown in this Guide are for hypothetical purposes only and are based upon financial, share price and other assumptions about future events or circumstances, which may or may not actually occur. All Awards are subject to continuous employment and other award requirements. The illustrations are hypothetical and not meant to imply that the Company will achieve certain stock prices or growth rates or has achieved any stated growth rate consistently in the past. The value and return on Company common stock will fluctuate over time and may be worth more or less than the values shown in these illustrations. Past performance is no guarantee of future results. Please consult your personal financial advisor on the value, tax, and other implications of your LTIAs under the Plan, as applicable to your circumstances. This Guide is not intended to provide any financial or tax advice. Award Confirmation Materials All employee recipients of LTIAs will have online access to their individual LTIA information and grant details through the Company’s online administrative platform, Shareworks. Governing Award Documents The Plan, the applicable Award communications or detail, this Guide and any supplement to this Guide contain the controlling provisions of each Award granted pursuant to the Plan. These documents, along with Committee decisions, will govern in cases of conflict, ambiguity or miscommunication. No employee has the authority to change or supersede LTIA provisions or Committee decisions. Any representation to the contrary will be void and nonbinding on the Company. The provisions of all Awards and this Guide are governed by, and subject to, the laws of the State of New York, United States of America, without regard to its conflict of law provisions, as provided in the Plan. AMP Shares Available for Grant under the Plan 54,400,000 AMP Shares are authorized for issuance under the Plan. Of such total, as of April 30, 2014, no more than 4,500,000 shares may be issued for what are referred to as “full value” awards, which are Awards other than stock options or stock appreciation rights. AMP Shares issued under the Plan may be either newly issued shares or treasury shares. Excluding AMP Shares that may be issued with respect to Substitution Awards, the maximum number of AMP Shares that may be covered by options or stock appreciation rights granted to any Participant in any calendar year will not exceed 3,000,000 AMP Shares. Further, the amount payable in cash to any Participant for any calendar year for all Awards other than options or stock appreciation rights will not exceed $30,000,000. If any shares subject to an award are forfeited, expire or otherwise terminate without issuance of such shares, or any

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18 award is settled for cash or otherwise does not result in the issuance of all or a portion of the shares subject to such award, such shares shall, to the extent of such forfeiture, expiration, termination, cash settlement or nonissuance, again be available for issuance under the Plan. Shares withheld by the Company to satisfy tax withholding requirements for Awards other than options or stock appreciation rights will also again be available for issuance under the Plan. For the avoidance of doubt, in the event that (i) any stock option is exercised through the tendering of shares (either actually or by attestation) or by the withholding of shares by the Company, (ii) withholding tax liabilities arising from such option or stock appreciation right are satisfied by the tendering of shares (either actually or by attestation) or by the withholding of shares by the Company, or (iii) any shares are repurchased by the Company with the proceeds from option exercises, the shares so tendered or withheld or repurchased shall not become available for issuance under the Plan. Plan Administration The Committee may from time to time designate the people who should be granted Awards under the Plan and the amount, type and other terms and conditions of Awards. Subject to the terms and limitations of the Plan, the Committee will have full discretion and authority to administer the Plan, including authority to interpret and construe the provisions and terms of Awards and to adopt rules and regulations under the Plan. Notwithstanding the Committee’s broad authority under the Plan, the Committee generally may not reprice, adjust or amend the exercise price of outstanding stock options or the strike price of outstanding stock appreciation rights, whether through amendment, cancellation and replacement grant, or any other means, nor permit the exchange of an outstanding option for cash or another award, unless such action is approved by the Company’s shareholders. In addition, certain amendments to the Plan require shareholder approval. The Plan is not subject to the requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA) and it is not qualified under the Internal Revenue Code. The Board appoints Committee members for an annual term. The Board may remove any Committee member for cause, and a majority of the shareholders may remove a Committee member for any reason. No Committee member is an employee of the Company or has any business undertakings with the Company. Performance-Based Compensation To the extent that an Award is intended to qualify as performance-based compensation under Section 162(m) of the Code, the Committee may grant Awards based on achievement of one or more of the following performance measures: • Net income or operating net income (before or after taxes, interest, depreciation, amortization, and/or nonrecurring/unusual items), • Return on assets, return on capital, return on equity, return on economic capital, return on other measures of capital, return on sales or other financial criteria, • Revenue or net sales, • Gross profit or operating gross profit, • Cash flow, • Productivity or efficiency ratios, • Share price or total shareholder return, • Earnings per share, • Budget and expense management, • Customer and product measures, including market share, high value client growth, and customer growth, • Working capital turnover and targets, • Margins • Economic value added or other value-added measurements (considered absolutely or relative to historic performance or relative to one or more other businesses and determined for the Company or a business unit or division). Such performance goals shall be established and measured by the Committee within the time period prescribed by, and shall otherwise comply with, the requirements of Section 162(m) of the Code. Adjustments upon Changes in Capitalization If the outstanding shares of Company common stock are changed by reason of any stock split, stock dividend, combination, subdivision or exchange of shares, recapitalization, merger, consolidation, reorganization or other

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19 extraordinary or unusual event, the Committee, to the extent that it determines adjustments to be appropriate, will direct that appropriate changes be made in the maximum number or kind of securities that may be issued under the Plan and in the terms of certain outstanding awards, including the number of shares or securities subject to awards and the exercise price or other stock price or share-related provisions of awards. Tax Withholding The Plan provides that the Committee is authorized to establish procedures to enable Participants to elect to satisfy certain federal, state and local withholding tax requirements using any method approved by the Committee. Such methods may include, but are not required to include, withholding such amounts from the Participant’s compensation, the Participant paying such amounts in cash, the Participant tendering previously acquired AMP Shares or the Company withholding AMP Shares otherwise issuable under the Award. If a Participant tenders AMP Shares or instructs the Company to withhold AMP Shares, only the number of AMP Shares sufficient to satisfy the minimum withholding tax requirements will be tendered or withheld. Assignment and Transfer LTIAs may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than by will or by the laws of descent or distribution, except as permitted by the Committee. Amendment Our Board of Directors may at any time suspend or discontinue the Plan or revise or amend it in any way; however, the Board generally may not reprice, adjust or amend the exercise price of outstanding stock options or the strike price of outstanding stock appreciation rights, whether through amendment, cancellation and replacement grant, or any other means, nor permit the exchange of an outstanding option for cash or another award, unless such action is approved by the Company’s shareholders. In addition, certain amendments to the Plan require shareholder approval. Term of the Plan No grants of LTIAs may be made under the Plan after February 25, 2024. Resources Availability of Certain Information and Incorporation of Documents by Reference Pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company will provide, without charge, upon the written or oral request of any person to whom this Guide is delivered by the Company or one of its affiliated entities to the Corporate Secretary’s Office, Ameriprise Financial, Inc., 55 Ameriprise Financial Center, Minneapolis, MN 55474, 612.671.3131, a copy of any of the following documents, all of which are incorporated by reference in this Guide: (a) The Company’s Registration Statement on Form 10, as amended, as filed with the Securities and Exchange Commission (the “Commission”) August 19, 2005 (the “Form 10 Registration Statement”). (b) All other reports filed by the Company pursuant to Section 13(a) or 15(d) of the Exchange Act since the end of the fiscal year covered by the Form 10 Registration Statement; and (c) The description of the Company’s common stock contained in the Company’s Form 10 Registration Statement, including any amendment or report filed for the purpose of updating such description. All documents filed by the Company with the Commission pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of the Registration Statement on Form S-8 to which this Guide relates and prior to the filing of a post-effective amendment that indicates that all securities offered hereby have been sold or that deregisters all securities then remaining unsold, will be deemed to be incorporated by reference in, and to be a part of, this Guide from the date of filing of such documents. Any statement contained herein or in a document incorporated or deemed to be incorporated by reference herein will be deemed to be modified or superseded for purposes of this Guide to the extent that a statement contained in any subsequently filed document which also is or is deemed to be incorporated by reference herein modifies or supersedes such statement. Any such statement so modified or superseded will not be deemed, except as so modified or superseded, to constitute a part of this Guide.

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20 Nothing in this Guide will be deemed to incorporate information furnished but not filed with the Commission pursuant to Item 2.02 or Item 7.01 of Form 8-K. In addition, the Company will provide, without charge, upon the written or oral request of any person to whom this Guide is delivered by the Company or one of its affiliated entities to the Corporate Secretary’s Office (contact information noted above), copies of all reports, proxy statements and other communications distributed by the Company to the holders of AMP Shares. Contact Information Type of question or information needed Contact/email/web address Phone number Fax number All stock option exercises (Net, cashless or buy- and-hold) Ameriprise Financial Brokerage Services Email: ESO.Group@ampf.com 612.671.5355 800.555.9826 612.671.6023 Ameriprise Brokerage Account (to access brokerage account information) Ameriprise Financial Brokerage Services Website: ameriprise.com 612.671.5355 800.555.9826 612.671.6023 RSA/RSU, PCU/PSU and NQSO grant information (grants, exercise options, vesting detail, tax information, brokerage account number on file with Stock Administration) Website: wam.advisorcompass.com/ac/shareworks (Can also search for Shareworks site on Inside and AdvisorCompass®). Email: Ameriprise.LTIA.Administration@ampf.com 612.678.7128 612.671.3948 Detrimental Conduct Provisions for Bands 50 and above Email: Ameriprise.compensation@ampf.com 612.671.3072 612.671.3948 Other information requests (e.g., LTIA policy questions for HR, general LTIA questions) Email: Ameriprise.LTIA.Administration@ampf.com 612.678.7128 612.671.3948 Senior Management Stock Ownership Program (Bands 70 and above) Email: Ameriprise.compensation@ampf.com 612.671.3072 612.671.3948 Pre-clearance, Ameriprise Securities Trading Policy including information about Blackout Periods Ameriprise Corporate Secretary’s Office 612.678.0106 612.671.4471 612.671.4841 Stock Transfer Agent: Shareholder inquiries, Address changes, Dividend check replacement Broadridge Corporate Issuer Solutions, Inc. Email: shareholder@broadridge.com Website: shareholder.broadridge.com/amp 866.337.4999 U.S. and Canada 303.974.3777 International Non-Available American Express LTIA information Outsourced to Morgan Stanley Smith Barney 516.227.5605 Not Applicable

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Document

Exhibit 31.1

AMERIPRISE FINANCIAL, INC.

CERTIFICATION

I, James M. Cracchiolo, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Ameriprise Financial, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 2, 2022		By:	/s/ James M. Cracchiolo
		James M. Cracchiolo<br>Chief Executive Officer

Document

Exhibit 31.2

AMERIPRISE FINANCIAL, INC.

CERTIFICATION

I, Walter S. Berman, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Ameriprise Financial, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 2, 2022		By:	/s/ Walter S. Berman
		Walter S. Berman<br>Chief Financial Officer

Document

Exhibit 32

AMERIPRISE FINANCIAL, INC.

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Ameriprise Financial, Inc. (the “Company”) for the quarterly period ended March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), James M. Cracchiolo, as Chief Executive Officer of the Company, and Walter S. Berman as Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 2, 2022		By:	/s/ James M. Cracchiolo
		James M. Cracchiolo<br>Chief Executive Officer			Date:	May 2, 2022		By:	/s/ Walter S. Berman
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		Walter S. Berman<br>Chief Financial Officer