Riversource Life Insurance

Risks

• The COVID-19 pandemic creates risks and uncertainties for RiverSource Life’s business.
• RiverSource Life’s financial condition and results of operations may be adversely affected by market fluctuations and by economic, political and other factors.
• Changes in interest rates and prolonged periods of low interest rates and even negative interest rates may adversely affect RiverSource Life’s financial condition and results of operations.
• Adverse capital and credit market conditions or a downgrade in RiverSource Life’s credit ratings may significantly affect its ability to meet liquidity needs, access to capital and cost of capital.
• Intense competition and the economies of scale for larger competitors could negatively impact RiverSource Life’s ability to maintain or increase its market share and profitability.
• RiverSource Life and its affiliates face intense competition in attracting and retaining key talent.
• The impairment, negative performance or default by other financial institutions or other third parties could adversely affect RiverSource Life.
• Poor investment performance in RiverSource Life’s variable products could adversely affect its financial condition and results of operations.
• AFS may be unable to attract and retain financial advisors.
• RiverSource Life’s valuation of fixed maturity and equity securities may include methodologies, estimations and assumptions which are subject to differing interpretations and could result in changes to investment valuations that may materially adversely impact its financial condition or results of operations.
• The elimination of LIBOR may adversely affect the interest rates on, and value of, certain derivatives and floating rate securities RiverSource Life holds, the activities RiverSource Life conducts, and any other assets or liabilities, the value of which is tied to LIBOR.
• The determination of the amount of allowances taken on certain investments is subject to management’s evaluation and judgment and could materially impact RiverSource Life’s financial position or results of operations.
• Some of RiverSource Life’s investments are relatively illiquid and RiverSource Life may have difficulty selling these investments.
• The failure of other insurers could require RiverSource Life to pay higher assessments to state insurance guaranty funds.
• If the counterparties to RiverSource Life’s reinsurance arrangements default or otherwise fail to fulfill their obligations, RiverSource Life may be exposed to risks it had sought to mitigate, which could adversely affect its financial condition and results of operations.
• If RiverSource Life’s reserves for future policy benefits and claims are inadequate, it may be required to increase its reserve liabilities, which would adversely affect its financial condition and results of operations.
• RiverSource Life’s profitability relies on its assumptions including those regarding morbidity rates, mortality rates and benefit utilization, as well as the future persistency of insurance policies and annuity contracts.
• Damage to the reputation of RiverSource Life or its affiliates could adversely affect the business of RiverSource Life.
• RiverSource Life may face direct or indirect effects of or responses to climate change.
• RiverSource Life’s operational systems and networks (as well as those of its affiliates’ franchisee advisors) are subject to evolving cybersecurity or other technological risks, which could result in the disclosure of confidential information, loss of proprietary information, damage to its reputation, additional costs, regulatory penalties and other adverse impacts.
• Protection from system interruptions and operating errors is important to RiverSource Life’s business. If RiverSource Life experienced a sustained interruption to its telecommunications or data processing systems or other failure in operational execution, it could harm its business.
• RiverSource Life’s risk management policies and procedures may not be fully effective in identifying or mitigating its risk exposure in all market environments, products or against all types of risk, including employee and financial advisor misconduct.
• The occurrence of natural or man-made disasters and catastrophes could adversely affect the financial condition and results of operations of RiverSource Life.
• Legal and regulatory actions are inherent in RiverSource Life’s business and could result in financial losses or harm its business.
• RiverSource Life’s business is regulated heavily, and changes to the laws and regulations may have an adverse effect on RiverSource Life’s operations, reputation and financial condition.
• Changes in corporate tax laws and regulations and changes in the interpretation of such laws and regulations, as well as adverse determinations regarding the application of such laws and regulations, could adversely affect RiverSource Life’s earnings and could make certain products less attractive to clients.
• RiverSource Life may not be able to protect its intellectual property and may be subject to infringement claims.
• Changes in and the adoption of accounting standards could have a material impact on RiverSource Life’s financial statements